HomeMy WebLinkAboutRC 20190621000034 111111111 IHIlI I ff111111 III 111111111111111111111111
When Recorded, Return to: 20190621000034
CITY OF RENTON COVENANT Rae:$158.00
City Clerk Division 6121!2019 8:54 AM
KING COUNTY,WA •
1055 South Grady Way, Suite 728
Renton, WA 98057
DECLARATION OF COVENANTS, CONDITIONS, AND
RESTRICTIONS FOR THE MERRITT SHORT PLAT
Grantor: Michael Merritt and Cynthia Merritt
Grantee: Merritt Short Plat; The Merritt Plat Homeowners Association;The Public
❑ Additional on page
Legal Description (abbreviated): The West 548 feet of Government Lot 1, Section 3, Township 23
North, Range 5 East, W.M. in King County, Washington;
EXCEPT the North 744.708 feet thereof; AND EXCEPT any
portion, if any within county road
Situate in the County of King, State of Washington.
Assessor's Tax Parcel ID#: 0323059108
Reference Nos. of Documents Released or Assigned: None
TABLE OF CONTENTS
ARTICLE SECTION PAGE
PART ONE: INTRODUCTION TO THE COMMUNITY 1
Article I Creation of the Community 1
1.1. Purpose and Intent. 1
1.2. Binding Effect 1
1.3. Governing Documents 2
Article II Concepts and Definitions 2
PART TWO: CREATION AND MAINTENANCE OF COMMUNITY STANDARDS 7
Article III Use and Conduct 7
3.1. Framework for Regulation 7
3.2. Authority to Enact Use Restrictions. 7
3.3. Owners'Acknowledgment and Notice to Purchasers 8
3.4. Protection of Owners and Others 8
Article IV Architecture and Landscaping 10
4.1. General 10
4.2. Design Review 10
4.3. Guidelines and Procedures. 11
4.4. No Waiver of Future Approvals 13
4.5. Variances 13
4.6. Limitation of Liability 14
4.7. Certificate of Approval 14
Article V Maintenance and Repair 14
5.1. Maintenance of Areas of Common Responsibility 14
5.2. Maintenance of Units 14
5.3. Responsibility for Repair and Replacement 15
5.4. Remedies for Failure to Maintain 15
PART THREE: COMMUNITY GOVERNANCE AND ADMINISTRATION 16
Article VI The Association and its Members 16
6.1. Function of Association 16
6.2. Membership 16
6.3. Voting 16
6.4. Notice 17
Article VII Association Powers and Responsibilities 17
7.1. Acceptance and Control of Association Property. 17
7.2. Maintenance of Areas of Common Responsibility 17
7.3. Insurance. 19
7.4. Compliance and Enforcement 22
7.5. Implied Rights; Board Authority 23
7.6. Indemnification of Officers, Directors, and Others 24
7.7 Security 24
7.8. Effect of Dissolution of Association 24
•
7.9. Provision of Services 25
7.10. Relations with Other Properties 25
7.11. Facilities and Services Open to the Public. 25
7.12. Permit Matters 25
7.13. Relationship with Tax-Exempt Organizations 25
Article VIII Association Finances 26
8.1. Budgeting and Allocating Common Expenses 26
8.2. Budgeting for Reserves 27
8.3. Special Assessments 27
8.4. Specific Assessments 27
8.5. Authority To Assess Owners;Time of Payment. 27
8.6. Obligation for Assessments 28
8.7. Lien for Assessments. 29
8.8 Suspension of Voting Rights. 29
8.9. Exempt Property 29
8.10. Reimbursement of Declarant for Common Areas Development-Capitalization 29
8.11 Reimbursements From Local Jurisdictions—Assignment to Declarant 30
PART FOUR: COMMUNITY DEVELOPMENT 30
Article IX Expansion of the Community 30
9.1. Expansion by Declarant 30
9.2. Expansion by the Association 30
9.3. Additional Covenants and Easements 31
9.4. Effect of Recording Supplemental Declaration 31
Article X Additional Rights Reserved to Declarant 31
10.1. Withdrawal of Property. 31
10.2. Governmental Interests 31
10.3. Marketing and Sales Activities 31
10.4. Right To Develop 31
10.5. Right To Approve Additional Covenants 31
10.6. Right To Approve Changes in the Standards Within the Community 32
10.7. Right To Transfer or Assign Declarant Rights 32
10.8. Easement To Inspect and Right To Correct 32
10.9. Right to Notice of Design or Construction Claims 32
10.10 Termination of Rights 32
PART FIVE: PROPERTY RIGHTS WITHIN THE COMMUNITY 33
Article XI Easements 33
11.1. Easements in Common Area. 33
11.2. Easements for Encroachments 34
11.3. Easements for Utilities, Etc 34
11.4. Easements To Serve Additional Property 35
11.5. Easements for Maintenance, Emergency, and Enforcement 35
11.6. Technology Utility Easements 35
11.7 Side Yard Easements 36
Article XII Exclusive Common Areas 36
12.1. Purpose 36
e r
12.2. Designation 36
12.3. Use by Others 37
Article XIII Party Walls and Other Shared Structures 37
13.1. General Rules of Law to Apply 37
13.2. Maintenance; Damage and Destruction. 37
13.3. Right to Contribution Runs With Land. 37
13.4. Disputes 37
PART SIX: RELATIONSHIPS WITHIN AND OUTSIDE THE COMMUNITY 37
Article XIV Dispute Resolution and Limitation on Litigation 38
14.1. Dispute Resolution Methods 38
14.2. Claims and Exempt Claims 38
14.3. Bound Parties 39
14.4. Arbitration Agreements 39
14.5. Consensus for Association Litigation 40
14.6. Mandatory Procedures for Litigation of Claims 41
14.7 Allocation of Costs of Resolving Claims 42
14.8 Enforcement of Resolution 42
Article XV Mortgagee Provisions 42
15.1. Notices of Action 42
15.2. Special FHLMC Provision 42
15.3. Other Provisions for First Lien Holders 43
15.4. Amendments to Documents 43
15.5. No Priority 44
15.6. Notice to Association 44
15.7. Failure of Mortgagee To Respond 44
15.8. Construction of Article XV 45
15.9. Amendment by Board 45
PART SEVEN: CHANGES IN THE COMMUNITY 45
Article XVI Changes in Ownership of Units 45
Article XVII Changes in Common Area 46
17.1. Condemnation 46
17.2. Partition 46
17.3. Transfer or Dedication of Common Area 46
Article XVIII Amendment of Declaration 46
18.1. By Declarant 46
18.2. By Members. 47
18.3. Validity and Effective Date 47
18.4. Exhibits 47
EXHIBITS
"A" Land Initially Submitted to Declaration
"B" Initial Use Restrictions
iii
DECLARATION OF COVENANTS, CONDITIONS,
AND RESTRICTIONS FOR THE MERRITT SHORT PLAT
THIS DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR THE
MERRITT SHORT PLAT is made this?if rday of,A4V , 2019, by Michael Merritt and Cynthia Merritt,
husband and wife ("Declarant"), for the real property described in Exhibit A and for such additional real
property as Declarant elects to add to the Declaration, if any.
PART ONE: INTRODUCTION TO THE COMMUNITY
Declarant, as the developer of this community, has established this Declaration to provide a
governance structure and a flexible system of standards and procedures for the development,
administration, maintenance, and preservation of procedures for the residential property. In addition, the
Homeowners Association is assigned certain responsibilities for administration, maintenance, and
preservation of property within the community as set forth in this Declaration. These additional
responsibilities shall be for the benefit of the members and all property owners within the community.
Article I Creation of the Community
1.1. Purpose and Intent. Declarant, as an owner of the real property described in Exhibit "A,"
intends by Recording this Declaration to create a general plan of development for the community
identified in the title to this Declaration. This Declaration provides a flexible and reasonable procedure
for the future expansion of the Properties to include additional real property as Declarant deems
appropriate, and provides for the overall development, administration, maintenance, and preservation of
the real property now and hereafter comprising the Properties. An integral part of the development plan
is the creation of a Homeowners Association comprised of all owners of real property in the Properties to
own, operate, and maintain various common areas and community improvements, and to administer
and enforce this Declaration and the other Governing Documents referred to in this Declaration.
1.2. Binding Effect. All property described in Exhibit "A," and any property which is made a
part of the Properties in the future by Recording one or more Supplemental Declarations, or
Amendments to the Declaration, shall be owned, conveyed, and used subject to all of the provisions of
this Declaration, which shall run with the title to such property. This Declaration shall be binding upon all
Persons having any right, title, or interest in any portion of the Properties, their heirs, successors,
successors-in-title, and assigns.
This Declaration shall be enforceable by Declarant, the Association, any Owner, and their
respective legal representatives, heirs, successors, and assigns, perpetually to the extent permitted by
law. If, however, the period for the enforcement of covenants running with the land is limited by law, the
Declaration shall be enforceable as provided above for a period of 20 years. After such time, this
Declaration shall be extended automatically for successive periods of 10 years each, unless an
instrument signed by a majority of the then Owners has been Recorded within the year preceding any
extension, agreeing to amend, in whole or in part, or terminate this Declaration, in which case this
Declaration shall be amended or terminated as specified in such instrument.
R �
Notwithstanding the above, if any provision of this Declaration would be unlawful, void, or
voidable by reason of applicability of the rule against perpetuities, such provision shall expire 21 years
after the death of the last survivor of the now living descendants of Elizabeth II, Queen of England.
Nothing in this Section shall be construed to permit termination of any easement created in this
Declaration without the consent of the holder of such easement. If any provision of this Declaration is
determined by judgment or court order to be invalid, or invalid as applied in a particular instance, such
determination shall not affect the validity of the other provisions or applications.
1.3. Governing Documents. The Governing Documents, as defined in Section 2.16, create a
general plan of development for the Properties which may be supplemented by additional covenants,
restrictions, and easements applicable to the Properties. In the event of a conflict between or among the
Governing Documents and any such additional covenants or restrictions, or the provisions of any other
rules or policies governing the Properties, the Governing Documents shall control. Nothing in this
Section shall preclude any Supplemental Declaration or other Recorded covenants applicable to any
portion of the Properties from containing additional restrictions or provisions which are more restrictive
than the provisions of this Declaration. All provisions of the Governing Documents shall apply to all
Owners and to all occupants of their Units, as well as their respective tenants, guests, and invitees. Any
lease on a Unit shall provide that the lessee and all occupants of the leased Unit shall be bound by the
terms of the Governing Documents.
Article II Concepts and Definitions
The terms used in the Governing Documents shall generally be given their natural, commonly
accepted definitions unless otherwise specified. Capitalized terms shall be defined as set forth below.
2.1. "Areas of Common Responsibility: The Common Area, together with such other areas
the Association has or assumes responsibility pursuant to the terms of this Declaration, the Plat, any
Supplemental Declaration, or the Plat, other applicable covenants, contracts, or agreements.
2.2. "Articles of Incorporation" or"Articles": The Articles of Incorporation of the Homeowners
Association, as filed with the Washington Secretary of State to establish the Association as a non-profit
corporation under Washington State law.
2.3. "Association": The non-profit homeowners Association formed with the Washington
State Secretary of State for the purpose of administering this Declaration on behalf of the Owners, and
its successors or assigns.The name of the Association is the"Merritt Plat Homeowners Association."
2.4. "Base Assessment": Assessments levied on all Units subject to assessment under
Article VIII to fund Common Expenses for the general benefit of all Units, as determined in accordance
with Section 8.1.
2.5. "Board of Directors" or "Board": The body responsible for administration of the
Association, selected as provided in the Bylaws and serving as the board of directors under Washington
corporate law.
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2.6. "Builder": Any Person who purchases one or more Units for the purpose of constructing
improvements for later sale to consumers, or who purchases one or more parcels of land within the
Properties for further subdivision, development, and/or resale in the ordinary course of business.
2.7. "Bylaws": The Bylaws of the Association, as they may be amended, which govern the
Association's internal affairs, such as voting rights, elections, meetings, selection of officers, etc.
2.8. "Class "B" Control Period": The period of time during which the Class "B" Member is
entitled to appoint a majority of the members of the Board. The Class "A" and Class "B" Members are
defined in Section 6.3. The Class "B" Control Period expires upon the first to occur of the following:
(a) when 100%of the total number of Units for the property described in Exhibit "A"
and any additional property added to the terms of this Declaration pursuant to Article IX, Section 9.1,
have been conveyed to Class "A" Members other than Builders;
(b) a date 10 years from the date this Declaration is Recorded; or
(c) when, in their discretion, the Class "B" Members so determine.
2.9. "Common Area": All real and personal property, including easements, which the
Association owns, leases, or otherwise holds possessory or use rights in for the common use and
enjoyment of the Owners, including, without limitation, entrance tracts, perimeter buffers, restrictive
areas, parks, surface water retention/detention tracts, landscape tracts, private roads, the community
center, and other tracts or parcels conveyed to the Association by Declarant. The term shall include the
Exclusive Common Area and the Community Area, as defined below. The term shall also include any
public roads or other public facilities, the dedication of which has not yet been accepted by the Local
Jurisdiction for public ownership; upon such acceptance, the Association's duties shall terminate.
2.10. "Common Expenses": The actual and estimated expenses incurred, or anticipated to be
incurred, by the Association for the general benefit of all Owners, including any reasonable reserve, as
the Board may find necessary and appropriate pursuant to the Governing Documents.
2.11. "Community Area": The real and personal property so designated by Declarant, and
which is owned and/or maintained by the Association for the common benefit of all Persons. In this plat,
the Community Area includes the Tract A open space, the Tract B well, pump and water distribution
components, the Tracts C and D common driveway, and the components of the storm water drainage
system which serve more than a single lot. The Community Area may include, if designated by the
Declarant on the face of the Plat or in a Recorded document conveying such Community Area to the
Association or action taken by the Association:
(a) the main entry and identification features, including all signage, landscaping,
and other improvements which are a part thereof;
(b) private roads, sidewalks and community-wide location and directional signage if
not owned and the maintenance assumed by the Local Jurisdiction, or if not deemed by the Association
to be a Party Structure under Article XIII;
(c) recreational amenities and private storm drainage systems depicted on the Plat;
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(d) the hard surface and soft service trails (private trails and any supplemental
maintenance of public trails), including signage;
(e) wetlands, sensitive areas, open space, conservation areas, buffers, drainage
areas, natural habitat preserves, and similar areas designated by Declarant, including all appurtenant
monitoring or reporting obligations associated therewith, if not owned and the maintenance assumed by
the Local Jurisdiction;
(f) the community parks, and any other parks designed as a Community Area by
Declarants, if not owned and the maintenance assumed by the Local Jurisdiction;
(g) if required on the face of the Plat, or if the Association assumes responsibility by
Board or Member vote, the landscaping in and adjacent to arterial roadways and buffers, which may be
located in an easement area shown on the recorded plat and regardless of whether such property is in
the public rights-of-way, to the extent permitted by the Local Jurisdiction; otherwise, such landscaping
shall not be included within the Areas of Common Responsibility, and shall be maintained by the Owners
of the Units adjacent to such areas, as provided in Section 5.2;
(h) landscaping located in any public parks, drainage areas, public facilities or
improvements, or other property for which the Association may provide maintenance and repair with the
consent of the Local Jurisdiction;
(i) any other real or personal property, service, or facility which now, or by
amendment of this Declaration, designated to be a part of the Community Areas by the Declarant.
2.12. "Community-Wide Standard": The standard of conduct, maintenance, or other activity
generally prevailing throughout the Properties. Such standard shall be established initially by Declarant
and may contain both objective and subjective elements. The Community-Wide Standard may evolve as
development progresses and as the needs and demands of the Properties change.
2.13. "Declarant": The person identified as "Declarant" on the signature page of this
Declaration, or any successor or assign who takes title to any portion of the property described in
Exhibit"A" for the purpose of development and/or sale and who is designated as a Declarant in a
Recorded instrument executed by the immediately preceding Declarant or assigned all or a portion of
Declarant's rights hereunder. Upon a designation of a successor Declarant, all rights and responsibility
of the former Declarant in and to such status as "Declarant" under this Declaration shall cease. At any
time that more than one person holds any rights as a Declarant, a single Declarant may exercise any of
the Declarant's rights described herein over that portion of the property owned by the single Declarant,
and shall not be required to obtain the concurrence of any other Declarant who does not hold an
ownership interest in the portion of the property over which a single Declarant desires to exercise sole
authority, except for amendment of the Declaration, which shall require the concurrence of both
Declarants unless otherwise agreed by the Declarants in writing. A single Declarant may conditionally or
permanently assign to the other Declarant all of a Declarant's rights hereunder, by recorded instrument.
2.14 "Declaration": This Declaration of Covenants, Conditions, and Restrictions, which
creates obligations which are binding upon the Association and all present and future Owners.
2.15 "Exclusive Common Area": A portion of the Common Area primarily benefiting one or
more, but less than all, Units, as more particularly described in Article XII.
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2.16. "Governing Documents": A collective term referring to this Declaration and any
applicable Supplemental Declaration, the Bylaws, the Articles, the Residential Design Guidelines, the
Use Restrictions, and the Rules and Regulations, as each may be amended.
2.17 "Local Jurisdiction": Any governmental authority having jurisdiction over the Properties,
for a matter described in this Declaration. A Local Jurisdiction may include the State of Washington, a
County, a City, or a local sewer or water district or other governmental entity assigned authority by law to
regulate activities in the Properties. A Local Jurisdiction may refer to different governmental authorities,
depending upon which governmental authority is assigned responsibility to regulate activities described
in this Declaration.
2.17. "Member": A Person subject to membership in the Association pursuant to Section 6.2.
2.18. "Mortgage": A mortgage, a deed of trust, a deed to secure debt, or any other form of
security instrument affecting title to any Unit. A "Mortgagee" shall refer to a beneficiary or holder of a
Mortgage.
2.19. "Owner": One or more Persons who hold the record title to any Unit, but excluding in all
cases any party holding an interest merely as security for the performance of an obligation. If a Unit is
sold under a Recorded contract of sale, and the contract specifically so provides, the purchaser (rather
than the fee owner) will be considered the Owner.
2.20. "Permits": Collectively, the permits, land use restrictions and conditions of Plat
approval, as determined, approved and issued by the Local Jurisdiction related to the development and
construction of improvements located at the Properties, as such may be amended or modified from time
to time.
2.21. "Person": A natural person, a corporation, a partnership, a trustee, or other legal entity.
2.22 "PIC": The Property Improvement Committee, as described in Article IV, Section 4.2.
2.23 "Plat": The plat of the real property described in Exhibit "A," together with all
requirements described or referenced therein. "Plat" shall also include any property included in a plat of
the real property referred to in Exhibit"A," but not included within the description of property contained in
Exhibit "A," which property may or may not be subjected to the terms of this Declaration in the future in
the manner described in Article IX.
2.24. "Properties:" The real property described in Exhibit "A," together with such additional
property, whether contiguous or noncontiguous, as is subjected to this Declaration, in accordance with
Article IX.
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2.25. "Record," "Recording," or "Recorded": To file, the filing, or filed of record in the Public
Real Estate Records of the County in which the Properties are located, or such other place which is
designated as the official location for recording deeds and similar documents affecting title to real estate.
The date of Recording shall refer to that time at which a document, map, or plat is Recorded.
2.26. "Residential Design Guidelines": The architectural, design, and construction guidelines
and review procedures adopted pursuant to Article IV, as they may be amended, which establish
architectural standards and guidelines for improvements and modifications to Units.
2.27. "Rules and Regulations": Board-adopted Rules and Regulations which establish
administrative procedures for internal Association governance and operating procedures for use of the
Common Area and property included within the Area of Common Responsibility.
2.28 "Sale" or "Sold" shall mean the date upon which ownership of a Unit is transferred from
an Owner to another person or entity by recordation of an instrument of transfer such as a deed or real
estate contract.
2.29 "Street Trees" shall mean the trees that are required to be planted, located and
maintained on the property pursuant to notes on the face of the Plat, or described by this Declaration.
2.30. "Special Assessment": An assessment levied in accordance with Section 8.3.
2.31. "Specific Assessment": An assessment levied in accordance with Section 8.4.
2.32. "Supplemental Declaration": An instrument Recorded pursuant to Article IX which
subjects additional property to this Declaration and/or imposes, expressly or by reference, additional
restrictions and obligations on the land described in such instrument.
2.33. "Unit": A portion of the Properties, whether improved or unimproved, which may be
independently owned and is intended for development, use, and occupancy as an attached or detached
residence for a single family. The term shall refer to the land, if any, which is part of the Unit as well as
any improvements thereon. In the case of a building within a condominium or other structure containing
multiple dwellings, each dwelling shall be deemed to be a separate Unit. Prior to Recording a
subdivision plat, a parcel of vacant land, or land on which improvements are under construction, shall be
deemed to contain the number of Units designated for residential use for such parcel on the preliminary
plat or the site plan approved by Declarant, whichever is more recent.
2.34. "Use Restrictions": The initial Use Restrictions set forth in Exhibit "B," as they may be
supplemented, modified, and repealed pursuant to Article III, which govern the use of property, activities
and conduct within the Properties.
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PART TWO: CREATION AND MAINTENANCE OF COMMUNITY STANDARDS
The standards for use and conduct, maintenance, and architecture within the community are
what give the community its identity and make it a place that people want to call "home." This
Declaration establishes procedures for regulation as a dynamic process which allows the community
standards to evolve as the Properties change and grow over time.
Article III Use and Conduct
3.1. Framework for Regulation. The Governing Documents establish, as part of the general
plan of development for the Properties, a framework of affirmative and negative covenants, easements
and restrictions which govern the Properties. Within that framework, the Board and the Members must
have the ability to respond to unforeseen problems and changes in circumstances, conditions, needs,
desires, trends, and technology which inevitably will affect the Properties, its Owners, and residents.
Toward that end, this Article establishes procedures for modifying and expanding the initial Use
Restrictions set forth in Exhibit "B."
3.2. Authority to Enact Use Restrictions.
(a) Subject to the terms of the Permits,this Article, and the Board's duty to exercise
business judgment and reasonableness on behalf of the Association and its Members, the Board may
adopt, modify, cancel, limit, create exceptions to, or expand the Use Restrictions. The Board shall
conspicuously publish notice concerning any such proposed action at least five business days prior to
the Board meeting at which such action is to be considered. Members shall have a reasonable
opportunity to be heard at a Board meeting prior to such action being taken.
Such action shall become effective, after compliance with the distribution requirements below,
unless disapproved at a meeting by Members representing more than 50%of the total Class "A" votes in
the Association and by the Class "B" Members, if any. The Board shall have no obligation to call a
meeting of the Members to consider disapproval except upon receipt of a petition as required for special
meetings in the Bylaws. Upon receipt of such petition prior to the effective date of any Board action
under this Section 3.2(a), the proposed action shall not become effective until after such meeting is held,
and then subject to the outcome of such meeting.
Alternatively, Members representing more than 50% of the total Class "A" votes in the
Association at an Association meeting duly called for such purpose, may vote to adopt Use Restrictions
which modify, cancel, limit, create exceptions to, or expand the Use Restrictions then in effect. Such
action shall require approval of the Class "B" Members, if any.
Prior to any action taken under this Section 3.2(a),becoming effective, the Board shall send a
copy of the new Use Restriction or explanation of any changes to the Use Restrictions to each Owner.
The effective date shall be at least 30 days following distribution to Owners. The Association shall
provide, without cost, a copy of the Use Restrictions then in effect to any requesting Member or
Mortgagee.
page 7
Nothing in this Article shall authorize the Board or the Members to modify, repeal, or expand the
Residential Design Guidelines or other provisions of this Declaration. In the event of a conflict between
the Residential Design Guidelines and the Use Restrictions, the Residential Design Guidelines shall
control.
(b) The procedures required under this Section 3.2 shall not apply to the enactment
and enforcement of Rules and Regulations (e.g., administrative issues, regulations governing the use of
the Common Area, etc.) unless the Board chooses in its discretion to submit to such procedures.
Examples of such administrative Rules and Regulations shall include, but not be limited to, hours of
operation of a recreational facility, use of private trails, and the method of allocating or reserving use of a
facility (if permitted) by particular individuals at particular times. The Board shall exercise business
judgment in the enactment, amendment, and enforcement of such administrative Rules and
Regulations.
3.3. Owners' Acknowledgment and Notice to Purchasers. All Owners are given notice that
use of their Units and the Common Area is limited by the Use Restrictions as they may be amended,
expanded, and otherwise modified hereunder. Each Owner, by acceptance of a deed, acknowledges
and agrees that the use and enjoyment and marketability of his or her Unit can be affected by this
provision and that the Use Restrictions may change from time to time. All purchasers of Units are on
notice that changes may have been adopted by the Association. Copies of the current Use Restrictions
may be obtained from the Association.
3.4. Protection of Owners and Others. Except as may be contained in this Declaration either
initially or by amendment or in the initial Use Restrictions set forth in Exhibit"B,"all Use Restrictions shall
comply with the following provisions:
(a) Similar Treatment. Similarly situated Owners shall be treated similarly.
(b) Displays. The rights of Owners to display religious and holiday signs, symbols,
and decorations inside structures on their Units of the kinds normally displayed in dwellings located in
single-family residential neighborhoods shall not be abridged, except that such shall be consistent with
the Local Jurisdiction's Ordinances and the Association may adopt time, place, and manner restrictions
with respect to any displays (including those outside of a dwelling) visible from outside the dwelling. No
Use Restrictions shall regulate the content of political signs; however, rules may regulate the time, place,
and manner of posting such signs (including design criteria) and the Local Jurisdiction's Ordinances
shall apply.
(c) Household Composition. No Use Restriction shall interfere with the freedom of
Owners to determine the composition of their households, except that the Association shall have the
power to require that all occupants be members of a single housekeeping unit, to limit rental of Units,
and to limit the total number of occupants permitted in each Unit on the basis of the size and facilities of
the Unit, its fair use of the Common Area, and on the basis of compliance with applicable the Local
Jurisdiction's Ordinances. Use Restrictions may be adopted by the Association to limit or prohibit the
occupancy of Units by persons who have been convicted of a crime for which continued supervision
after conviction is imposed upon the proposed occupant.
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(d) Activities Within Dwellings. No Use Restriction shall interfere with the activities
carried on within the confines of dwellings, except that the Association may prohibit activities not
normally associated with property restricted to residential use, it may restrict rental of Units, and it may
restrict or prohibit any activities that create monetary costs for the Association or other Owners, that
create a danger to the health or safety of occupants of other Units, that generate excessive noise or
traffic, that create unsightly conditions visible outside the dwelling, that create an unreasonable source of
annoyance, or that involve illegal conduct.
(e) Household Occupations. No Use Restriction may interfere with the rights of an
Owner or occupant residing in a Unit to conduct business activities within the Unit so long as (i) the
existence or operation of the business activity is not apparent or detectable by sight, sound or smell
from outside the Unit; (ii) the business activity is consistent with the residential character of the
Properties and does not constitute a nuisance, or a hazardous or offensive use, or threaten the security
or safety of other residents of the Properties, as may be determined in the Board's sole discretion; (iii)
any goods, materials or supplies used in connection with any trade, service or business, wherever the
same may be conducted, be kept or stored inside any building on any Unit and that they not be visible from
the exterior of the home and (iv) it is as otherwise allowed by the Permits and applicable law. Nothing in
this Section shall permit (1) the use of a Unit for a purpose which violates law, regulations, rules or
applicable zoning codes, or (2) activities that cause a significant increase in neighborhood traffic, or (3)
modification of the exterior of the Unit. The Board may, from time to time, promulgate rules restricting the
activities located on the Properties pursuant to the authority granted to the Association under this
Declaration,the Bylaws, and RCW Chapter 64.38.
(f) Allocation of Burdens and Benefits. No Use Restriction shall alter the allocation
of financial burdens among the various Units or rights to use the Common Area to the detriment of any
Owner over that Owner's objection expressed in writing to the Association. Nothing in this provision
shall prevent the Association from changing the Common Area available, from adopting generally
applicable Rules and Regulations for use of Common Area, or from denying use privileges to those who
abuse the Common Area or violate the Governing Documents. This provision does not affect the right to
increase the amount of assessments as provided in Article VIII.
(g) Alienation. The Association may not impose any fee on the transfer of any Unit
greater than an amount reasonably based on the costs to the Association of administering that transfer.
The Association may regulate the leasing or rental of Units.
(h) Abridging Existing Rights. No Use Restriction shall require an Owner to dispose
of personal property that was in or on a Unit prior to the adoption of such Use Restriction and which was
in compliance with all Use Restrictions previously in force. This dispensation shall apply only for the
duration of such Owner's ownership of such personal property, and this right shall not run with title to any
Unit.
(i) Reasonable Rights To Develop. No Use Restriction, Rule or Regulation, or
action by the Association or Board shall unreasonably impede Declarant's right to develop the Properties
or other portions of the community.
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The limitations in subsections (a) through (h) of this Section shall only limit the authority
exercised under Section 3.2; they shall not apply to amendments to this Declaration adopted in
accordance with Article XVIII.
Article IV Architecture and Landscaping
4.1. General. No structure or thing shall be placed, erected, or installed upon any Unit within
the Properties and no improvements or other work (including staking, clearing, excavation, grading and
other site work, exterior alterations of existing improvements, or planting or removal of landscaping) shall
take place within the Properties, except in compliance with this Article,the Residential Design Guidelines
adopted pursuant to this Declaration.
No approval of the PIC shall be required to repaint the exterior of a structure, if in accordance
with the originally approved color scheme, or to rebuild in accordance with originally approved plans and
specifications. Any Owner may remodel, paint, or redecorate the interior of his or her Unit without
approval, provided that the work performed complies with all laws applicable to the Local Jurisdiction.
However, modifications to the interior of screened porches, patios, and similar portions of a Unit visible
from outside the structure and modifications to enclose garages as living space shall be subject to
approval.
All dwellings constructed on any portion of the Properties shall be designed by and built in
accordance with the plans and specifications of a licensed architect or licensed building designer unless
otherwise approved by Declarant or Declarant's designee, in its sole discretion. This Article shall not
apply to Declarant's activities, nor to the Association's activities during the Class "B" Control Period.
4.2. Design Review.
(a) By Declarants. Each Owner, by accepting a deed or other instrument conveying
any interest in any portion of the Properties, acknowledges that Declarant has a substantial interest in
ensuring that the improvements within the Properties enhance Declarant's reputation as a community
developer and do not impair Declarant's ability to market, sell, or lease their property. Therefore, each
Owner agrees that no activity within the scope of this Article ("Work") shall be commenced on such
Owner's Unit unless and until Declarant or Declarant's designee has given its prior written approval for
such Work, which approval may be granted or withheld in Declarant's or Declarant's designee's sole
discretion.
In reviewing and acting upon any request for approval, Declarant or its designee shall be acting
solely in Declarant's interest and shall owe no duty to any other Person. Declarant's rights reserved
under this Article shall continue so long as Declarant owns any portion of the Properties or any real
property described in Exhibit A, unless earlier terminated in a written instrument executed and Recorded
by Declarant. Declarant may, in its sole discretion, designate one or more Persons from time to time to
act on Declarant's behalf in reviewing applications hereunder.
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Declarant may from time to time, but shall not be obligated to, delegate all or a portion of the
Declarant's reserved rights under this Article to (i) a Property Improvement Committee appointed by the
Association's Board of Directors (the "PIC"), or (ii) a committee comprised of architects, engineers, or
other persons who may or may not be Members of the Association. Any such delegation shall be in
writing, specifying the scope of responsibilities delegated, and shall be subject to (i) Declarant's right to
revoke such delegation at any time and reassume jurisdiction over the matters previously delegated; and
(ii) Declarant's right to veto any decision which Declarant determines, in Declarant's sole discretion, to
be inappropriate or inadvisable for any reason. So long as Declarant has any rights under this Article,
the jurisdiction of the foregoing entities shall be limited to matters specifically delegated by Declarant.
(b) Property Improvement Committee. Upon delegation by Declarant or upon
expiration or termination of Declarant's rights under this Article, the Association, acting through the PIC,
shall assume jurisdiction over design, property modification and architectural matters in the Property.
The PIC, when appointed, shall consist of at least three persons who shall serve and may be removed
and replaced in the Board's discretion. The members of the PIC need not be Members of the
Association, the Board, or representatives of Members, and may, but need not, include architects,
engineers, or similar professionals, whose compensation, if any, shall be established from time to time
by the Board. If the PIC is not formed, or is determined to lack authority to exercise the powers assigned
to it for any reason, the Board shall act as the PIC and may delegate any portion of the PIC's duties to
any person, subject to final approval or ratification by the Board. The PIC may be broken into or may
form subcommittees to preside over particular areas of review (e.g., a new construction subcommittee
and a modifications subcommittee). Any reference herein to the PIC should be deemed to include a
reference to any such subcommittee.
Unless and until such time as Declarant delegates all or a portion of its reserved rights to the
PIC or Declarant's rights under this Article terminate, the Association shall have no jurisdiction over
architectural matters. For purposes of this article, the entity having jurisdiction in a particular case shall
be referred to as the "Reviewer."
(c) Reviewer Fees; Assistance. The Reviewer may establish and charge
reasonable fees for review of applications hereunder and may require such fees to be paid in full prior to
review of any application. Such fees may include the reasonable costs incurred in having any
application reviewed by architects, engineers, or other professionals. Declarant and the Association may
employ architects, engineers, or other persons as deemed necessary to perform the review. The Board
may include the compensation of such persons in the Association's annual operating budget as a
Common Expense.
4.3. Guidelines and Procedures.
(a) Residential Design Guidelines. Declarant may prepare the initial Residential
Design Guidelines, which may contain general provisions applicable to all of the Properties as well as
specific provisions which vary from area to area within the community. The Residential Design
Guidelines are not the exclusive basis for decisions of the Reviewer and compliance with the Residential
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Design Guidelines does not guarantee approval of any application. Absence of adopted Residential
Design Guidelines shall not limit the PIC's ability to exercise its powers; however, when disapproving an
application for permission to perform Work, the PIC shall describe the basis for its decision if it is unable
to refer to adopted Residential Design Guidelines as the reason for its election to disapprove an
application.
Declarant shall have sole and full authority to amend the Residential Design Guidelines in a
manner consistent with the Permits as long as the Declarant owns any portion of the Properties or has a
right to expand the Properties pursuant to Section 9.1, notwithstanding a delegation of reviewing
authority to the PIC, unless Declarant also delegates the power to amend to the PIC. Upon termination
or delegation of Declarant's right to amend, the PIC shall have the authority to amend the Residential
Design Guidelines in a manner consistent with the Permits, with the consent of the Board. Any
amendments to the Residential Design Guidelines shall be prospective only and shall not apply to
require modifications to or removal of structures previously approved once the approved construction or
modification has commenced. Except for conditions of the Permits, there shall be no limitation on the
scope of amendments to the Residential Design Guidelines, and such amendments may remove
requirements previously imposed or otherwise make the Residential Design Guidelines less restrictive.
The Reviewer shall make the Residential Design Guidelines available to Owners and Builders
who seek to engage in development or construction within the Properties. In Declarant's discretion,
such Residential Design Guidelines may be Recorded, in which event the Recorded version, as it may
unilaterally be amended from time to time, shall control in the event of any dispute as to which version of
the Residential Design Guidelines was in effect at any particular time.
(b) Procedures. No Work shall commence on any portion of the Properties until an
application for approval has been submitted to and approved by the Reviewer. Such application shall
include plans and specifications ("Plans") showing site layout, structural design, exterior elevations,
exterior materials and colors, landscaping, drainage, exterior lighting, irrigation, and other features of
proposed construction, as applicable. The Residential Design Guidelines and the Reviewer may require
the submission of such additional information as may be reasonably necessary to consider any
application.
In reviewing each submission, the Reviewer may consider any factors it deems relevant,
including, without limitation, harmony of external design with surrounding structures and environment.
Decisions may be based on purely aesthetic considerations. Each Owner acknowledges that
determinations as to such matters are purely subjective and opinions may vary as to the desirability
and/or attractiveness of particular improvements.
The Reviewer shall respond in writing to the applicant at the address specified in the application.
The response may (i) approve the application, with or without conditions; (ii) approve a portion of the
application and disapprove other portions; or (iii) disapprove the application. The Reviewer may, but
shall not be obligated to, specify the reasons for any objections and/or offer suggestions for curing any
objections.
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In the event that the Reviewer fails to respond in a timely manner(as provided in the Residential
Design Guidelines), approval shall be deemed to have been given, subject to Declarant's right to veto
approval by the PIC pursuant to this Section. However, no approval, whether expressly granted or
deemed granted pursuant to the foregoing, shall be inconsistent with the Residential Design Guidelines
unless a differing design proposal has been approved pursuant to Section 4.5. Notice shall be deemed
to have been given at the time the envelope containing the response is deposited with the U. S. Postal
Service. Personal delivery of such written notice shall, however, be sufficient and shall be deemed to
have been given at the time of delivery to the applicant. The Board may also adopt other methods for
providing notice, by promulgation of Rules describing such notice procedures.
Until expiration of Declarant's rights under this Article, the PIC shall notify Declarant in writing
within three business days after the PIC has approved any application relating to proposed Work within
the scope of matters delegated to the PIC by Declarant. The notice shall be accompanied by a copy of
the application and any additional information which Declarant may require. Declarant shall have 10
days after receipt of such notice to veto any such action, in its sole discretion, by notice to the PIC and
the applicant.
If construction does not commence on a project for which Plans have been approved within one
year after the date of approval, such approval shall be deemed withdrawn and it shall be necessary for
the Owner to reapply for approval before commencing the proposed Work. Once construction is
commenced, it shall be diligently pursued to completion. All Work shall be completed within one year of
commencement unless otherwise specified in the notice of approval or unless the Reviewer grants an
extension in writing, which it shall not be obligated to do. If approved Work is not completed within the
required time, it shall be considered nonconforming and shall be subject to enforcement action by the
Association, Declarant or any aggrieved Owner.
The Reviewer may, by resolution, exempt certain activities from the application and approval
requirements of this Article, provided such activities are undertaken in strict compliance with the
requirements of such resolution.
4.4. No Waiver of Future Approvals. Each Owner acknowledges that the persons reviewing
applications under this Article will change from time to time and that opinions on aesthetic matters, as
well as interpretation and application of the Residential Design Guidelines, may vary accordingly. In
addition, each Owner acknowledges that it may not always be possible to identify objectionable features
of proposed Work until the Work is completed, in which case it may be unreasonable to require changes
to the improvements involved, but the Reviewer may refuse to approve similar proposals in the future.
Approval of applications or Plans for any Work done or proposed, or in connection with any other matter
requiring approval, shall not be deemed to constitute a waiver of the right to withhold approval as to any
similar applications, Plans, or other matters subsequently or additionally submitted for approval.
4.5. Variances. The Reviewer may authorize variances from compliance with any of its
guidelines and procedures when circumstances such as topography, natural obstructions, hardship, or
aesthetic or environmental considerations require, but only in accordance with the laws of the Local
Jurisdiction. Such variances may only be granted, however, when unique circumstances dictate and no
variance shall (a) be effective unless in writing; (b) be contrary to this Declaration; or (c) estop the
Reviewer from denying a variance in other circumstances. For purposes of this Section, the inability to
obtain approval of any governmental agency, the issuance of any permit, or the terms of any financing
shall not be considered a hardship warranting a variance.
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4.6. Limitation of Liability. The standards and procedures established by this Article are
intended as a mechanism for maintaining and enhancing the overall aesthetics of the Properties; they do
not create any duty to any Person. Review and approval of any application pursuant to this Article is
made on the basis of aesthetic considerations only and the Reviewer shall not bear any responsibility for
ensuring the structural integrity or soundness of approved construction or modifications, nor for ensuring
compliance with building codes and other governmental requirements, nor for ensuring that all dwelling
are of comparable quality, value, or size or of similar design.
Declarant, the Association, the Board, any committee, or member of any of the foregoing shall
not be held liable for soil conditions, drainage or other general site work, any defects in plans revised or
approved hereunder, or any injury, damages, or loss arising out of the manner or quality of approved
construction on or modifications to any Unit. In all matters, Declarant, the Board, the PIC, and any
members thereof shall be defended and indemnified by the Association as provided in Section 7.6.
4.7. Certificate of Approval. Any Owner may request that the Reviewer issue a certificate of
approval certifying that there are no known violations on his or her Unit of this Article or the Residential
Design Guidelines. The Association shall either grant or deny such request within 30 days after receipt
of a written request and may charge a reasonable administrative fee for issuing such certificates.
Issuance of such a certificate shall estop the Association from taking enforcement action with respect to
any condition as to which the Association had notice as of the date of such certificate.
Article V Maintenance and Repair
5.1. Maintenance of Areas of Common Responsibility. The Association shall maintain the
Areas of Common Responsibility as described in Section 7.2.
5.2. Maintenance of Units. Each Owner shall maintain his or her Unit, and all landscaping
and improvements comprising the Unit, and all landscaping improvements comprising the Unit, in a
manner consistent with the Governing Documents, the Community-Wide Standard, and all applicable
covenants, unless such maintenance responsibility is otherwise assumed by or assigned to the
Association pursuant to any Supplemental Declaration or other declaration of covenants applicable to
such Unit. If not installed fully by the Builder, an owner of a Unit shall install all landscaping, surrounding
all sides of the residential dwelling contained on the Unit, within six months after the initial transfer of a
completed residential dwelling to an Owner other than a Builder. Each Owner shall also be responsible
for maintaining and irrigating the landscaping within that portion of any adjacent Common Area or public
right-of-way lying between the Unit boundary and any wall, fence, curb, or water's edge located on the
Common Area or public right-of-way adjacent to the Unit boundary, unless such area is made a part of
the Areas of Common Responsibility maintained by the Association; provided, there shall be no right to
remove trees, shrubs or similar vegetation from this area without prior approval pursuant to Article IV.
Each Owner shall perform at the Owner's expense the maintenance and upkeep of fencing, Street Trees
(if located on a Unit), drainage swales and/or underground drain lines and catch basins installed on their
Unit, unless such components of the Units are made a part of the Areas of Common Responsibility
maintained by the Association.
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5.3. Responsibility for Repair and Replacement. Unless otherwise specifically provided in
the Governing Documents or in other instruments creating and assigning maintenance responsibility,
responsibility for maintenance shall include responsibility for repair and replacement, as necessary to
maintain the property to a level consistent with the Community-Wide Standard. Repair and replacement
may include improvement if necessary to comply with applicable building codes or other regulations or if
otherwise deemed appropriate, in the Board's reasonable discretion.
By virtue of taking title to a Unit, each Owner covenants and agrees with all other Owners and
with the Association to carry property insurance for the full replacement cost of all insurable
improvements on his or her Unit, less a reasonable deductible. If the Association assumes responsibility
for obtaining any insurance coverage on behalf of Owners, the premiums for such insurance shall be
levied as a Specific Assessment against the benefited Unit and the Owner.
Each Owner further covenants and agrees that in the event of damage to or destruction of
structures on or comprising such Owner's Unit, the Owner shall proceed promptly to repair or to
reconstruct in a manner consistent with the original construction or such other plans and specifications
as are approved in accordance with Article IV. Alternatively, the Owner shall clear the Unit and maintain
it in a neat and attractive condition consistent with the Community-Wide Standard. The Owner shall pay
any costs which are not covered by insurance proceeds.
5.4 Remedies for Failure to Maintain. If any Unit Owner shall fail to conduct maintenance on
the Owner's Unit as required by this Article to maintain the Unit in the same condition as a reasonably
prudent homeowner, or in a manner which preserves the drainage for other Units, the Association shall
notify the Owner in writing of the maintenance required. If the maintenance is not performed within thirty
(30) days of the date notice is delivered, the Association shall have the right to enter upon the Unit and
provide such maintenance, and to levy an assessment against the non-performing Owner and Unit for the
cost of providing the maintenance. The assessment shall constitute a lien against the Unit owned by the
non-performing Owner and may be collected and foreclosed in the same manner as any other delinquent
monthly or special assessment. The Association shall have all remedies for collection as provided in the
Declaration. In the event that emergency repairs are needed to correct a condition on a Unit which poses a
substantial risk of injury or significant property damage to others, the Association may immediately perform
such repairs as may be necessary after the Association has attempted to give notice to the non-performing
Owner of the repairs necessary. Such notice in emergency circumstances shall be sufficient if attempted
orally or in writing immediately prior to the Association's undertaking the necessary repairs. Emergency
repairs performed by the Association, if not paid for by the non-performing Owner, may be collected by the
Association in the manner provided for herein notwithstanding the failure of the Association to give the non-
performing Owner the thirty(30)day notice.
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PART THREE: COMMUNITY GOVERNANCE AND ADMINISTRATION
The success of the community is dependent upon the support and participation of every
residential owner in its governance and administration. The Declaration establishes the Association as
the mechanism by which each Owner is able to provide that support and participation. While many
powers and responsibilities are vested in the Association's Board of Directors, some decisions are
reserved for the Association's membership—the Owners of property in the community.
Article VI The Association and its Members
6.1. Function of Association. The Association is the entity responsible for management,
maintenance, operation, and control of the Areas of Common Responsibility. The Association also is the
primary entity responsible for enforcement of the Governing Documents. The Association shall perform
its functions in accordance with the Governing Documents, the Permits and applicable Local
Jurisdiction's Ordinances, and Washington law.
6.2. Membership. Every Owner shall be a Member of the Association. There shall be only
one membership per Unit. If a Unit is owned by more than one Person, all co-Owners shall share the
privileges of such membership, subject to reasonable Board regulation and the restrictions on voting set
forth in Section 6.3(c) and in the Bylaws, and all such co-Owners shall be jointly and severally obligated
to perform the responsibilities of Owners. The membership rights of an Owner which is not a natural
person may be exercised by any officer, director, member, partner, or trustee, or by the individual
designated from time to time by the Owner in a written instrument provided to the Secretary of the
Association.
6.3. Voting. The Association shall have two classes of membership, Class "A"and Class "B."
(a) Class "A". Class "A" Members shall be all Owners except the Class "B"
Member, if any. Class "A" Members shall have one equal vote for each Unit in which they hold the
interest required for membership under Section 6.2, except that there shall be only one vote per Unit and
no vote shall be exercised for any property which is exempt from assessment under Section 8.9.
(b) Class "B". The Class "B" Member shall be the Declarant, or if Declarant's rights
are assigned, Declarant's assignee. The Class "B" Members may appoint a majority of the members of
the Board of Directors during the Class "B" Control Period, as specified in the Bylaws. Additional rights
of the Class "B" Member are specified in the relevant sections of the Governing Documents. The
Class "B" membership shall terminate upon the earlier of (i) five years after expiration of the Class "B"
Control Period; or (ii) when, in its discretion, Declarant so determines and declares in a Recorded
instrument. Upon termination of the Class "B" membership, Declarant shall be a Class "A" Member
entitled to Class "A"votes for each Unit which it owns.
(c) Exercise of Voting Rights. Members may exercise voting rights as set forth in
the Bylaws. If there is more than one Owner of such Unit, the vote for such Unit shall be exercised as
the co-Owners determine among themselves and advise the Secretary of the Association in writing prior
to the vote being taken. Absent such advice, the Unit's vote shall be suspended if more than one
Person seeks to exercise it.
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6.4. Notice. Any notice provided for in this Declaration shall be served personally or shall be
mailed by surface mail, as follows, unless the Board adopts a rule allowing electronic service of notices:
(a) if to the Association, to the president or secretary of the Association at the
principal office of the Association, or at such other address of which it has given notice in accordance
with this Section, or to the registered agent of the Association, as such registered agent is identified in
the records of the Secretary of State of the State of Washington (or any successor agency thereof);
(b) if to a Property Owner, to such Owner at the address of such Owner's Unit or
such other address as the Owner has registered with the Association, or such registered agent is
identified in the records of the Secretary of State of the State of Washington (or any successor agency
thereof).
All such notices shall, for all purposes, be deemed delivered (a) upon personal delivery to the
party or address specified above or (b) on the third day after mailing when mailed by first class mail,
postage prepaid, and properly addressed. The Board of the Association may designate additional
methods of giving notice by promulgation of rules describing the alternative methods of providing notice,
including the adoption of providing notice electronically, without using surface mail, or by private parcel
delivery service companies.
Article VII Association Powers and Responsibilities
7.1. Acceptance and Control of Association Property. The Association, through action of its
Board, may acquire, hold, and dispose of tangible and intangible personal property and real property.
Declarant and Declarant's designees may convey to the Association personal property and fee title,
leasehold or other property interests in any real property. The Association shall accept and maintain
such property at its expense for the benefit of its Members, subject to any restrictions set forth in the
deed or other instrument transferring such property to the Association and any obligations or conditions
appurtenant to such property. Upon a Declarant's written request, the Association shall reconvey to
Declarant any unimproved portions of the Properties originally conveyed by a Declarant to the
Association for no consideration, to the extent conveyed by a Declarant in error or needed by a
Declarant to make minor adjustments in property lines.
7.2. Maintenance of Areas of Common Responsibility. The Association shall maintain,
commencing with the recordation of the Plat or this Declaration, whichever occurs first, and in
accordance with the Community-Wide Standard and the Permits, the Areas of Common Responsibility,
which shall include, to the extent such features are present in the Plat and are not maintained by the
Local Jurisdiction, but need not be limited to:
(a) the Common Area and the Community Area, which includes the entry features
and landscaping (whether placed on land owned by the Association, or in the easements created for the
Association's benefit), landscaping, roads, sidewalks and private parks within the Properties, alleys
serving all or any of the Units, private trails, recreational amenities and the community center, parking
restrictions and signage, open spaces, wetlands, natural preserve areas and conservation areas,
sensitive areas, and buffers, except to the extent that such improvements are dedicated to the Local
Jurisdiction and such dedication is accepted, then upon acceptance such improvements shall cease to
be Common Areas;
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(b) supplemental landscaping, maintenance, and repairs to property dedicated or
conveyed to the Local Jurisdiction or other public entities (to the extent permitted by and consistent with
any conditions imposed by such entities) and which may include public rights-of-way within or abutting
the Properties, public parks and play areas, public trails, drainage areas, and storm water facilities;
(c) irrigation facilities, storm water facilities, streets, sidewalks, street lighting, park
and pool/ride lots, and transit shelters that are not maintained by the Local Jurisdiction;
(d) planter strips, medians, Street Trees and central planting areas within cul-de-
sacs;
(e) mailbox and mailbox shelters (which may not be moved or physically altered
without approval of the PIC, the U.S. Postal Service and the Local Jurisdiction);
(f) the improvements made by the Local Jurisdiction to the 15-foot wide pedestrian
trail easement over the Tract A open space dedicated to the public as delineated on the face of the Plat,
and such portions of any additional property included within the Areas of Common Responsibility as may
be dictated by this Declaration, described on the Plat, or described in an Exhibit containing Additional
Areas of Common Responsibility is attached to this Declaration, or contained in any contract or
agreement for maintenance thereof entered into by the Declarant or the Association, including
landscaping and other flora, viewsheds, parks, utility areas or improvements, structures, streets,
alleyways, bike/pedestrian pathways and trails, and other improvements;
(g) the signage placed in Tract A, identifying Tract A as non-revocable open space
and the site of a future public trail connection.
The Association may maintain other property which it does not own, including, without limitation,
Units and property dedicated to the public, if the Board of Directors determines that such maintenance is
necessary or desirable to maintain the Community-Wide Standard. The Association shall not be liable
for any damage or injury occurring on, or arising out of the condition of, property which it does not own
except to the extent that it has been negligent in the performance of its maintenance responsibilities.
The Association shall maintain the drainage facilities and equipment within the Areas of
Common Responsibility in continuous operation, except for any periods necessary, as determined in the
sole discretion of the Board, to perform required maintenance or repairs, unless Members representing
67% of the Class "A" votes in the Association and the Class "B" Members, if any, agree in writing to
discontinue such operation. Except as provided above, the Areas of Common Responsibility shall not be
reduced by amendment of this Declaration or any other means except with Declarant's prior written
approval as long as Declarant owns any property described in Exhibit "A" of this Declaration.
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The costs associated with maintenance, repair, monitoring, and replacement of the Areas of
Common Responsibility shall be a Common Expense; provided, the Association may seek
reimbursement from the Owner of, or other Persons responsible for, certain portions of the Areas of
Common Responsibility pursuant to this Declaration, other Recorded covenants, or agreements with the
Owner thereof. The Association's responsibility to maintain the Areas of Common Responsibility shall
exist whether the control of the Association is held by the Declarant or the members of the Association.
The Association is authorized to expend funds its collects, whether collected from the Owners or the
Declarant, to carry out its duties described in this Article, whether the control of the Association is held by
the Declarant or the members of the Association.
7.3. Insurance.
(a) Required Coverages. After the conclusion of the Class B Control Period, or
sooner if elected by the Declarant, the Association, acting through its Board or its duly authorized agent,
may obtain and continue in effect the following types of insurance, if reasonably available, or if not
reasonably available,the most nearly equivalent coverages as are reasonably available:
(i) Blanket property insurance covering the full replacement cost all
insurable improvements under current building ordinances and codes on the Common Area and within
the Areas of Common Responsibility to the extent that Association has assumed responsibility in the
event of a casualty, regardless of ownership;
(ii) Commercial general liability insurance on the Areas of Common
Responsibility, insuring the Association and its Members with limits of (if generally available at
reasonable cost, including primary and any umbrella coverage) at least $1,000,000.00 per occurrence
with respect to bodily injury, personal injury, and property damage, or such additional coverage and
higher limits which a reasonably prudent person would obtain;
(iii) Directors and officers liability coverage;
(iv) Such additional insurance as the Board, in its best business judgment,
determines advisable.
Premiums for all insurance on the Areas of Common Responsibility shall be Common
Expenses, unless the Board reasonably determines that other treatment of the premiums is more
appropriate.
(b) Policy Requirements. The Association shall arrange for an annual review of the
sufficiency of its insurance coverage by one or more qualified Persons, at least one of whom must be
familiar with insurable replacement costs in Western Washington. All Association policies shall provide
for a certificate of insurance to be furnished to the Association and, upon request, to each Member
insured.
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The policies may contain a reasonable deductible and the amount thereof shall not be
subtracted from the face amount of the policy in determining whether the policy limits satisfy the
requirements of Section 7.3(a). In the event of an insured loss, the deductible shall be treated as a
Common Expense in the same manner as the premiums for the applicable insurance coverage.
However, if the Board reasonably determines, after notice and an opportunity to be heard in accordance
with the Bylaws, that the loss is the result of the negligence or willful misconduct of one or more Owners,
their guests, invitees, or lessees, then the Board may assess the full amount of such deductible against
such Owner(s) and their Units as a Specific Assessment.
All insurance coverage obtained by the Board shall:
(i) be written with a company authorized to do business in Washington
which satisfies the requirements of the Federal National Mortgage Association, or such other secondary
mortgage market agencies or federal agencies as the Board deems appropriate;
(ii) be written in the name of the Association as trustee for the benefited
parties. Policies on the Common Areas shall be for the benefit of the Association and its Members.
Policies secured on behalf of a Neighborhood shall be for the benefit of the Owners within the
Neighborhood and their Mortgagees, as their interests may appear;
(iii) not be brought into contribution with insurance purchased by Owners,
occupants, or their Mortgagees individually;
(iv) contain an inflation guard endorsement;
(v) include an agreed amount endorsement, if the policy contains a co-
insurance clause;
(vi) provide that each Owner is an insured person under the policy with
respect to liability arising out of such Owner's interest in the Common Area as a Member in the
Association (provided, this provision shall not be construed as giving an Owner any interest in the
Common Area other than that of a Member);
(vii) provide a waiver of subrogation under the policy against any Owner or
household member of an Owner;
(viii) include an endorsement precluding cancellation, invalidation,
suspension, or non-renewal by the insurer on account of any one or more individual Owners, or on
account of anycurable defect or violation without prior written demand to the Association to cure the
defect or violation and allowance of a reasonable time to cure; and
(ix) include an endorsement precluding cancellation, invalidation, or
condition to recovery under the policy on account of any act or omission of any one or more individual
Owners, unless such Owner is acting within the scope of its authority on behalf of the Association.
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In addition, the Board shall use reasonable efforts to secure insurance policies which provide:
(i) a waiver of subrogation as to any claims against the Association's
Board, officers, employees, and its manager, the Owners and their tenants, servants, agents, and
guests;
(ii) a waiver of the insurer's rights to repair and reconstruct instead of
paying cash;
(iii) an endorsement requiring at least 30 days' prior written notice to the
Association of any cancellation, substantial modification, or non-renewal; and
(iv) a cross liability provision.
(c) Restoring Damaged Improvements. In the event of damage to or destruction of
Common Area or other property which the Association is obligated to insure, the Board or its duly
authorized agent shall file and adjust all insurance claims and obtain reliable and detailed estimates of
the cost of repairing or restoring the property to substantially the condition in which it existed prior to the
damage, allowing for changes or improvements necessitated by changes in applicable building codes.
Damaged improvements on the Common Area shall be repaired or reconstructed in a timely
manner unless Members representing
at least 75% of the total Class A votes in the Association, and
the Class B Members, if any, decide not to repair or reconstruct. No Mortgagee shall have the right to
participate in the determination of whether the damage or destruction to the Common Area shall be
repaired or reconstructed. If a decision is made not to restore the damaged improvements, and no
alternative improvements are authorized, the affected property shall be cleared of all debris and ruins
and thereafter shall be maintained by the Association in a neat and attractive, landscaped condition
consistent with the Community-Wide Standard.
Any insurance proceeds remaining after paying the costs of repair or reconstruction, or after
such settlement as is necessary and appropriate, shall be retained by the Association for the benefit of
its Members or the Persons entitled to use the damaged or destroyed property, as appropriate, and
placed in a capital improvements account. This is a covenant for the benefit of Mortgagees and may be
enforced by the Mortgagee of any affected Unit.
If insurance proceeds are insufficient to cover the costs of repair or reconstruction, the Board
may, without a vote of the Members, levy Special Assessments to cover the shortfall against those
Owners responsible for the premiums for the applicable insurance coverage under Section 7.3(a).
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7.4. Compliance and Enforcement. Every Owner and occupant of a Unit shall comply with
the Governing Documents. The Board may promulgate rules, and impose sanctions for violation of the
Governing Documents after notice and a hearing in accordance with the procedures set forth in the
Bylaws or rules adopted by the Board. Sanctions for violation may include,without limitation:
(a) imposing reasonable monetary fines which shall constitute a lien upon the
violator's Unit. (In the event that any occupant, guest or invitee of a Unit violates the Governing
Documents and a fine is imposed, the fine shall first be assessed against the violator; provided, if the
fine is not paid by the violator within the time period set by the Board, the Owner shall pay the fine upon
notice from the Board);
(b) suspending an Owner's right to vote;
(c) suspending any Person's right to use any recreational facilities within the
Common Area; provided, nothing herein shall authorize the Board to limit ingress or egress to or from a
Unit;
(d) suspending any services provided by the Association to an Owner or the
Owner's Unit if the Owner is more than 30 days delinquent in paying any assessment or other charge
owed to the Association;
(e) exercising self-help or taking action to abate any violation of the Governing
Documents in a non-emergency situation;
(f) requiring an Owner, at its own expense, to remove any structure or
improvement on such Owner's Unit in violation of Article IV and to restore the Unit to its previous
condition and, upon failure of the Owner to do so, the Board or its designee shall have the right to enter
the property, remove the violation and restore the property to substantially the same condition as
previously existed and any such action shall not be deemed a trespass;
(g) without liability to any Person, precluding any contractor, subcontractor, agent,
employee or other invitee of an Owner who fails to comply with the terms and provisions of Article IV and
the Residential Design Guidelines from continuing or performing any further activities in the Properties;
and
(h) levying Specific Assessments to cover costs incurred by the Association to bring
a Unit into compliance with the Governing Documents.
In addition, the Board may take the following enforcement procedures to ensure compliance with
the Governing Documents without the necessity of compliance with the procedures set forth in the
Bylaws:
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(a) exercising self-help in any emergency situation (specifically including, but not
limited to,the towing of vehicles that are in violation of parking Rules and Regulations); and
(b) bringing suit at law or in equity to enjoin any violation or to recover monetary
damages or both.
In addition to any other enforcement rights, if an Owner fails properly to perform his or her
maintenance responsibility, the Association may Record a notice of violation and/or perform such
maintenance responsibilities in the manner described in Section 5.4, and assess all costs incurred by the
Association against the Unit and the Owner as a Specific Assessment. All remedies set forth in the
Governing Documents shall be cumulative of any remedies available at law or in equity. In any action to
enforce the Governing Documents, if the Association prevails, it shall be entitled to recover all costs,
including,without limitation, attorney's fees and court costs, reasonably incurred in such action.
The Association shall not be obligated to take any action if the Board reasonably determines that
the Association's position is not strong enough to justify taking such action that the covenant, Use
Restriction, or Rule and Regulation being enforced is, or is likely to be construed as, inconsistent with
applicable law; or that it is not in the Association's interest, based upon hardship, expenses, or other
reasonable criteria to pursue enforcement action. Such a decision shall not be construed a waiver of the
right of the Association to enforce such provision at a later time under other circumstances or estop the
Association from enforcing any other covenant, Use Restriction, or Rule and Regulation. The
Association, by contract or other agreement, may enforce applicable Local Jurisdiction ordinances, if
applicable, and permit the Local Jurisdiction to enforce ordinances within the Properties for the benefit of
the Association and its Members.
While conducting the Association's business affairs, the Board shall act within the scope of the
Governing Documents and in good faith to further the legitimate interests of the Association and its
Members. In fulfilling its governance responsibilities, the Board's actions shall be governed and tested
by the rule of reasonableness.The Board shall exercise its power in a fair and nondiscriminatory manner
and shall adhere to the procedures established in the Governing Documents.
7.5. Implied Rights; Board Authority. The Association may exercise any right or privilege
given to it expressly by the Governing Documents, or reasonably implied from or reasonably necessary
to effectuate any such right or privilege. Except as otherwise specifically provided in the Governing
Documents, or by law, all rights and powers of the Association may be exercised by the Board without a
vote of the membership. The Board may institute, defend, settle, or intervene on behalf of the
Association in mediation, binding or non-binding arbitration, litigation, or administrative proceedings in
matters pertaining to the Area of Common Responsibility, enforcement of the Governing Documents, or
any other civil claim or action. However, the Governing Documents shall not be construed as creating
any independent legal duty to institute litigation on behalf of or in the name of the Association or its
members. In exercising the rights and powers of the Association, making decisions on behalf of the
Association, and conducting the Association's affairs, Board members shall be subject to, and their
actions shall be judged in accordance with,the standards set forth in the Bylaws.
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7.6. Indemnification of Officers, Directors, and Others. To the fullest extent permitted by
Washington law, the Association shall indemnify every officer, director, volunteer and committee
member of the Association against all damages and expenses, including counsel fees, reasonably
incurred in connection with any action, suit, or other proceeding (including settlement of any suit or
proceeding, if approved by the then Board of Directors) to which he or she may be a party by reason of
being or having been an officer, director, or committee member.
The officers, directors, and committee members shall not be liable for any mistake of judgment,
negligent or otherwise, except for their own individual willful misfeasance, malfeasance, misconduct, or
bad faith. The officers and directors shall have no personal liability with respect to any contract or other
commitment made or action taken in good faith on behalf of the Association (except to the extent that
such officers or directors may also be Members of the Association). The Association shall indemnify
and forever hold each such officer, director, and committee member harmless from any and all liability to
others on account of any such contract, commitment, or action. This right to indemnification shall not be
exclusive of any other rights to which any present or former officer, director, or committee member may
be entitled. The Association shall, as a Common Expense, maintain adequate general liability and
officers'and directors' liability insurance to fund this obligation, if such insurance is reasonably available.
7.7. Security. The Association may, but shall not be obligated to, maintain or support certain
activities within the Properties designed to make the Properties safer than they otherwise might be.
Neither the Association nor Declarant shall in any way be considered insurers or guarantors of security
within the Properties, nor shall either be held liable for any loss or damage by reason of failure to provide
adequate security or ineffectiveness of security measures undertaken. No representation or warranty is
made that any systems or measures, including any mechanism or system for limiting access to the
Properties, cannot be compromised or circumvented, nor that any such systems or security measures
undertaken will in all cases prevent loss or provide the detection or protection for which the system is
designed or intended. Each Owner acknowledges, understands, and covenants to inform its tenants
and all occupants of its Unit that the Association, its Board and committees, and Declarant are not
insurers and that each Person using the Properties assumes all risks of personal injury and loss or
damage to property, including Units and the contents of Units, resulting from acts of third parties.
7.8. Effect of Dissolution of Association. In the event that the Association is dissolved and is no
longer licensed as a non-profit corporation, the rights and duties of the Association (including, but not
limited to, all ownership interest in the Common Areas) shall vest in the Owners, as an unincorporated
association. Any Owner or any Mortgagee may reinstate the Association's corporate status, or create a
successor entity as a successor to the Association, at any time by filing with the State of Washington such
documents as required by law to reinstate the Association or create its successor; and upon such
reinstatement, the Owners' rights and duties, as described in this Declaration, shall re-vest in the reinstated
or successor Association, and all owners shall be members thereof with all rights to vote provided by law
and the organizational documents of the entity. To the greatest extent possible, any successor entity shall
be governed by the Articles and Bylaws of the Association as if they had been made to constitute the
governing documents of the successor entity.
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7.9. Provision of Services. The Association may provide or provide for services and facilities
for the Members, their guests, lessees, and invitees, and shall be authorized to enter into and terminate
contracts or agreements with other entities, including Declarant, to provide such services and facilities.
The Board may charge use and consumption fees for such services and facilities. By way of example,
some services and facilities which might be offered include landscape maintenance, pest control service,
cable television service, internet service, security, caretaker, transportation, fire protection, utilities, and
similar services and facilities. Nothing herein shall be construed as a representation by Declarant or the
Association as to what, if any, services shall be provided. In addition, the Board shall be permitted to
modify or cancel existing services provided, in its discretion, unless otherwise required by the Governing
Documents. No Owner shall be exempt from the obligation to pay for such services, if provided to all
Owners as a Common Expense, based upon non-use or any other reason.
7.10. Relations with Other Properties. The Association may enter into contractual
agreements or covenants to share costs with other associations, properties or facilities for maintaining
and/or operating shared or mutually beneficial properties or facilities.
7.11. Facilities and Services Open to the Public. Certain facilities and areas within the
Properties may be open for use and enjoyment of the public. Such facilities and areas may include, by
way of example: greenbelts, trails and paths, parks, and other neighborhood spots conducive to
gathering and interaction, roads, sidewalks, and medians. Declarant may designate such facilities and
areas as open to the public at the time Declarant makes such facilities and areas a part of the Areas of
Common Responsibility or the Board may so designate at any time thereafter. Portions of the Common
Area and/or Community Area which are not intended to be open to the public may be posted as private
property.
7.12. Permit Matters. The Properties may be subject to a variety of permit restrictions and
obligations which are contained in the Permits and other Local Jurisdiction Ordinances and are binding
upon the Properties and run with the land. The Association and each Owner shall comply with the
restrictions and requirements of the Permits, as applicable. During initial development of the Properties,
Declarant shall implement, maintain, and enforce the programs and requirements of the Permits.
Declarant shall have the right, but not the obligation, to delegate or assign certain responsibilities to the
Association or any committee, and the Association or such committee shall have the obligation to accept
and fulfill such delegation or assignment of such obligations. The cost of such activities shall be a
Common Expense, if the activity is associated with the Community Area and for the general benefit of all
of the community. In the performance of its responsibilities, the Association shall follow the standards
and requirements of the Permits and the Local Jurisdiction's Ordinances. The Association shall comply
with the design guidelines and maintenance standards referenced in the Permits, particularly in the use
and preservation of native vegetation and landscaping, in the performance of its responsibilities under
this Declaration.
7.13. Relationship with Tax-Exempt Organizations. Declarant or the Association may create,
enter into agreements or contracts with, or grant exclusive and/or non-exclusive easements over
portions of the Common Area to non-profit, tax-exempt organizations, the operation of which confers
some benefit upon the Properties, the Association, the Members, or residents. While such organizations
may perform a variety of services and functions, it is anticipated that such activities will focus on
environmental and conservation programs benefiting the community as a whole. If established by
Declarant or the Association, the Association shall be responsible to fund the minimum organization
expenses of maintaining such entity and may contribute money, real or personal property, or services to
such entity. Such expenses and any such contributions shall be a Common Expense. For the purposes
page 25
of this Section, a "tax-exempt organization" shall mean an entity which is exempt from federal income
taxes under the Internal Revenue Code ("Code"), such as, but not limited to, entities which are exempt
from federal income taxes under Sections 501(c)(3) or 501(c)(4), as the Code may be amended from
time to time.
Article VIII Association Finances
8.1. Budgeting and Allocating Common Expenses. At least 60 days before the beginning of
each fiscal year, if there is any change in the sums that the Board anticipates will be collected or
expended by the Association in the coming fiscal year, the Board shall prepare a budget of the estimated
Common Expenses for the coming year, including any contributions to be made to a reserve fund
pursuant to Section 8.2. The budget shall also reflect the sources and estimated amounts of funds to
cover such expenses, which may include any surplus to be applied from prior years, any income
expected from sources other than assessments levied against the Units, and the amount to be
generated through the levy of Base Assessments and Special Assessments against the Units, as
authorized in Section 8.6.
The Association is hereby authorized to levy Base Assessments equally against all Units subject
to assessment under Section 8.5 to fund the Common Expenses. In determining the Base Assessment
rate per Unit, the Board may consider any assessment income expected to be generated from any
additional Units reasonably anticipated to become subject to assessment during the fiscal year.
Declarant may, but shall not be obligated to, reduce the Base Assessment for any fiscal year by
payment of a subsidy(in addition to any amounts paid by Declarant under Section 8.6(b)), which may be
either a contribution, an advance against future assessments due from Declarant, or a loan, in
Declarant's discretion. Any such subsidy shall be disclosed as a line item in the income portion of the
budget. Payment of such subsidy in any year shall not obligate Declarant to continue payment of such
subsidy in future years, unless otherwise provided in a written agreement between the Association and
Declarant.
Within 30 days after the adoption of a final budget by the Board, the Board shall send to each
Owner a copy of the final budget, notice of the amount of the Base Assessment to be levied pursuant to
such budget, and notice of a meeting to consider ratification of the budget. Such meeting shall be held
not less than 14 nor more than 60 days from the mailing of such materials, or within such other time
period that may be mandated by law for non-profit homeowner associations, such as RCW 64.38.035.
The budget and assessment shall be ratified unless disapproved at a meeting by Members representing
more than 50% of the total Class "A" votes in the Association and by the Class "B" Member, if such
exists. Such ratification shall be effective whether or not a quorum is present.
If any proposed budget is disapproved or the Board fails for any reason to determine the budget
for any year, then the budget most recently in effect shall continue in effect until a new budget is
determined. The Board may revise the budget and adjust the Base Assessment from time to time
during the year, subject to the notice requirements and the right of the Members to disapprove the
revised budget as set forth above.
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8.2. Budgeting for Reserves. The Board shall prepare and periodically review a reserve
budget for the Areas of Common Responsibility for which the Association maintains capital items as a
Common Expense. The budgets shall take into account the number and nature of replaceable assets,
the expected life of each asset, and the expected repair or replacement cost. The Board shall include in
the Common Expense budget adopted pursuant to Section 8.1 a capital contribution to fund reserves in
an amount sufficient to meet the projected need with respect both to amount and timing by annual
contributions over the budget period.
8.3. Special Assessments. In addition to other authorized assessments, the Association
may levy Special Assessments to cover unbudgeted expenses or expenses in excess of those
budgeted. Any such Special Assessment may be levied as a Common Expense against the entire
membership, if such Special Assessment is for Common Expenses, or against the Owners benefited by
the Special Assessment, if the Special Assessment is made for the limited benefit of less than all of the
Members. Except as otherwise specifically provided in this Declaration, any Special Assessment shall
require the affirmative vote or written consent of Members (if a Common Expense) representing more
than 50% of the total votes allocated to Units which will be subject to such Special Assessment, and the
affirmative vote or written consent of the Class "B" Members, if such exist. Special Assessments shall
be payable in such manner and at such times as determined by the Board, and may be payable in
installments extending beyond the fiscal year in which the Special Assessment is approved.
8.4. Specific Assessments. The Association shall have the power to levy Specific
Assessments against a particular Unit as follows:
(a) to cover the costs, including overhead and administrative costs, of providing
services to Units upon request of an Owner pursuant to any menu of special services which may be
offered by the Association. Specific Assessments for special services may be levied in advance of the
provision of the requested service; and
(b) to cover costs incurred in bringing the Unit into compliance with the Governing
Documents, or costs incurred as a consequence of the conduct of the Owner or occupants of the Unit,
their agents, contractors, employees, licensees, invitees, or guests; provided, the Board shall give the
Unit Owner prior written notice and an opportunity for a hearing, in accordance with the Bylaws, before
levying any Specific Assessment under this subsection (b).
8.5. Authority To Assess Owners; Time of Payment. Declarant hereby establishes and the
Association is hereby authorized to levy assessments as provided for in this Article and elsewhere in the
Governing Documents. The obligation to pay assessments shall commence as to each Unit on the date
each Unit is conveyed to an Owner by Declarant; provided, however, that if such Owner is a Builder, the
obligation to pay assessments shall commence six months after the Unit is first conveyed to the Builder.
The first annual Base Assessment levied on each Unit shall be adjusted according to the number of
months remaining in the fiscal year at the time assessments commence on the Unit.
Assessments shall be paid in such manner and on such dates as the Board may establish. The
Board may require advance payment of assessments at closing of the transfer of title to a Unit and
impose special requirements for Owners with a history of delinquent payment. If the Board elects,
assessments may be paid in two or more installments. Unless the Board otherwise provides, the Base
Assessment shall be due and payable in advance on the first day of each fiscal year. If any Owner is
delinquent in paying any assessments or other charges levied on his Unit, the Board may require the
outstanding balance on all assessments to be paid in full immediately.
page 27
8.6. Obligation for Assessments.
(a) Personal Obligation. Each Owner, by accepting a deed or entering into a
Recorded contract of sale for any portion of the Properties, is deemed to covenant and agree to pay all
assessments authorized in the Governing Documents. All assessments, together with interest
(computed from its due date at a rate of 12% per annum or such other rate as the Board may establish,
subject to the limitations of Washington law), late charges as determined by Board resolution, costs, and
reasonable attorneys' fees, shall be the personal obligation of each Owner and a lien upon each Unit
until paid in full. Upon a transfer of title to a Unit, the grantee shall be jointly and severally liable for any
assessments and other charges due at the time of conveyance.
Failure of the Board to fix assessment amounts or rates or to deliver or mail each Owner an
assessment notice shall not be deemed a waiver, modification, or a release of any Owner from the
obligation to pay assessments. In such event, each Owner shall continue to pay Base Assessments on
the same basis as during the last year for which an assessment was made, if any, until a new
assessment is levied, at which time the Association may retroactively assess any shortfalls in
collections.
No Owner may exempt himself from liability for assessments by non-use of Common Area,
abandonment of his Unit, or any other means. The obligation to pay assessments is a separate and
independent covenant on the part of each Owner. No diminution or abatement of assessments or set-
off shall be claimed or allowed for any alleged failure of the Association or Board to take some action or
perform some function required of it, or for inconvenience or discomfort arising from the making of
repairs or improvements, or from any other action it takes.
Upon written request, the Association shall furnish to any Owner liable for any type of
assessment a certificate in writing signed by an Association officer setting forth whether such
assessment has been paid. Such certificate shall be conclusive evidence of payment. The Association
may require the advance payment of a reasonable processing fee for the issuance of such certificate.
(b) Exemption From Assessment. During the Class "B" control period, there shall
be no assessment of any kind for Units or any other property owned by Declarant or those persons
holding any Declarant rights, without the consent of the Declarant or the holder of such Declarant's
rights.
(c) Declarants Option To Fund Budget Deficits. During the Class "B" Control
Period, Declarant may satisfy its obligation for assessments, if any, on Units which it owns either by
paying such assessments in the same manner as any other Owner or by paying the difference between
the amount of assessments levied on all other Units subject to assessment and the amount of actual
expenditures by the Association during the fiscal year. Unless Declarant otherwise notifies the Board in
writing at least 60 days before the beginning of each fiscal year, Declarant shall be deemed to have
elected to continue paying on the same basis as during the immediately preceding fiscal year.
Regardless of Declarant's election, Declarant's obligations hereunder may be satisfied in the form of
cash or by"in kind"contributions of services or materials, or by a combination of these. After termination
of the Class "B" Control Period, Declarant shall pay assessments on its unsold Units in the same
manner as any other Owner.
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8.7. Lien for Assessments. The Association shall have a lien against each Unit to secure
payment of delinquent assessments, as well as interest, late charges (subject to the limitations of
Washington law), and costs of collection (including attorney's fees and costs, whether or not a lawsuit
shall be involved). Such lien shall be superior to all other liens, except (a)the liens of all taxes, bonds,
assessments, and other levies which by law would be superior, and (b)the lien or charge of any
Mortgage Recorded before the Recordation of the lien (meaning any Recorded Mortgage with first
priority over other Mortgages) made in good faith and for value. Such lien, when delinquent, may be
enforced by suit,judgment, and judicial or non-judicial foreclosure.
The Association may bid for the Unit at the foreclosure sale and acquire, hold, lease, mortgage,
and convey the Unit. While a Unit is owned by the Association following foreclosure: (a) no right to vote
shall be exercised on its behalf; (b) no assessment shall be levied on it; and (c) each other Unit shall be
charged, in addition to its usual assessment, its pro rata share of the assessment that would have been
charged such Unit had it not been acquired by the Association. The Association may sue for unpaid
assessments and other charges authorized hereunder without foreclosing or waiving the lien securing
the same.
Sale or transfer of any Unit shall not affect the assessment lien or relieve such Unit from the lien
for any subsequent assessments. However, the sale or transfer of any Unit pursuant to foreclosure of
the Mortgage shall extinguish the lien as to any installments of such assessments due prior to the
Mortgagee's foreclosure. The subsequent Owner to the foreclosed Unit shall not be personally liable for
assessments on such Unit due prior to such acquisition of title. Such unpaid assessments shall be
deemed to be Common Expenses collectible from Owners of all Units subject to assessment under
Section 8.5, including such acquirer, its successors and assigns.
8.8 Suspension of Voting Rights. In the event any Member shall be in arrears in the payment
of the assessments due or shall be in default of the performance of any of the terms of this Declaration,the
Articles and Bylaws of the Association, the rules or regulations adopted by the Association, for a period of
thirty(30) days,the Member's right to vote may be suspended by the Board, and if suspended shall remain
suspended until all payments, together with interest, late fees, and attorneys' fees and costs, if any, are
brought current and all defaults remedied. In addition, the Association shall have such other remedies
against such delinquent Members as may be provided in the Articles, Bylaws, the Declaration, or
Washington state law.
8.9. Exempt Property. All Areas of Common Responsibility, portions of the Property owned
by Declarant, and any property dedicated or conveyed to and accepted by any governmental authority or
public utility shall be exempt from payment of Base Assessments and Special Assessments. In addition,
Declarant and/or the Association shall have the right, but not the obligation, to grant exemptions to
certain Persons qualifying for tax exempt status under Section 501(c) of the Internal Revenue Code so
long as such Persons own property subject to this Declaration for purposes listed in Section 501(c).
8.10. Reimbursement of Declarant for Common Area Development and Capitalization of
Association. Upon acquisition of record title to a Unit by the first Owner thereof other than Declarant or a
Builder, a contribution shall be made by or on behalf of the purchaser to the working capital of the
Association in an amount to be determined by Declarant or in the absence of the election of the
Declarant to determine the contribution, by the Board if it elects to do so. Upon acquisition of record title
to a Unit by the first Owner thereof, the Declarant, if it elects to do so, shall also be entitled to collect
from the purchaser of the Unit a sum, to be determined by the Declarant, as a reimbursement made to
page 29
the Declarant for the expenditures made by the Declarant to improve the Areas of Common
Responsibility and organize the Association, on behalf of the Members. These amounts shall be in
addition to, not in lieu of, the annual Base Assessment and shall not be considered an advance payment
of such assessment. These amounts shall be deposited into the purchase and sales escrow and
disbursed therefrom to the Declarant for reimbursement, or to the Association for use in covering
operating expenses and other expenses incurred by the Association pursuant to this Declaration and the
Bylaws, as appropriate based upon the contributions required.
8.11 Reimbursements From Local Jurisdictions—Assignment to Declarant. In the event that
the Association succeeds to the interest of the Declarant in any bond, late comers' reimbursement,
impact fee refund or similar right to receive a refund of funds paid by the Declarant pursuant to a
requirement imposed by a Local Jurisdiction as a result of the Association's acquisition of Areas of
Common Responsibility("Refund"), the Association irrevocably assigns any such Refund to Declarant or
to the holder of Declarant's rights, if such rights were completely assigned by Declarant. Upon receipt of
notice that the Association is entitled to a Refund, the Association shall provide written notice of the
Refund to the Declarant, the Declarant's assignee or, if the address cannot be determined from the
public record, interpleaded in the Superior Court of the county in which the Property is located. The
Association shall assign to Declarant or Declarant's successor all Refunds to which the Association may
become entitled, regardless of the time that may have passed since recordation of the Plat and the
Association.
PART FOUR: COMMUNITY DEVELOPMENT
The Declaration reserves various rights to the developer to facilitate the smooth and orderly
development of the community and to accommodate changes which occur as a community matures.
Article IX Expansion of the Community
9.1. Expansion by Declarant. Declarant may from time to time subject to the provisions of
this Declaration all or any portion of property owned by the Declarant or the Declarant's successors in
interest as designated by the Declarant, including portions which are not contiguous to other portions of
the Properties, by Recording a Supplemental Declaration describing the additional property to be
subjected. A Supplemental Declaration Recorded pursuant to this Section shall not require the consent
of any Person except the owner of such property, if other than Declarant. Declarant's right to expand the
Properties pursuant to this Section shall expire 20 years after this Declaration is Recorded. Until then,
Declarant may transfer or assign this right to any Person. Any such transfer shall be memorialized in a
written, Recorded instrument executed by Declarant. Nothing in this Declaration shall be construed to
require Declarant or any successor to subject additional property to this Declaration or to develop all of
the property described in Exhibit"A" in any manner whatsoever.
9.2. Expansion by the Association. The Association may also subject additional property to
the provisions of this Declaration by Recording a Supplemental Declaration describing the additional
property. A Supplemental Declaration shall require the affirmative vote of Members representing more
than 50% of the Class "A" votes of the Association and the consent of the owner of the property. In
addition, so long as Declarant owns property subject to this Declaration or which may become subject to
this Declaration in accordance with Section 9.1, Declarant's consent shall be necessary. The
Supplemental Declaration shall be signed by the President and Secretary of the Association, by the
owner of the property and by Declarant, if Declarant's consent is necessary.
page 30
9.3. Additional Covenants and Easements. Declarant may subject any portion of the
Properties to additional covenants and easements, including covenants obligating the Association to
maintain and insure such property and authorizing the Association to recover its costs through
Assessments. Such additional covenants and easements may be set forth either in a Supplemental
Declaration subjecting such property to this Declaration or in a separate Supplemental Declaration
referencing property previously subjected to this Declaration. If the property is owned by someone other
than Declarant, then the consent of the Owner shall be necessary and shall be evidenced by their
execution of the Supplemental Declaration. Any such Supplemental Declaration may supplement,
create exceptions to, or otherwise modify the terms of this Declaration as it applies to the subject
property in order to reflect the different character and intended use of such property.
9.4. Effect of Recording Supplemental Declaration. A Supplemental Declaration shall be
effective upon Recording unless otherwise specified in such Supplemental Declaration. On the effective
date of the Supplemental Declaration, any additional property subjected to this Declaration shall be
assigned voting rights in the Association and assessment liability in accordance with the provisions of
this Declaration.
Article X Additional Rights Reserved to Declarant
10.1. Withdrawal of Property. Declarant reserves the right to amend this Declaration, so long
as Declarant has a right to annex additional property pursuant to Section 9.1, for the purpose of
removing any portion of the Properties which has not yet been improved with structures from the
coverage of this Declaration. Such amendment shall not require the consent of any Person other than
the Owner of the property to be withdrawn, if not a Declarant; such amendment shall be subject to any
required approval by the Local Jurisdiction. If the property is Common Area, the Association shall
consent to such withdrawal.
10.2. Governmental Interests. Declarant may designate sites it owns within the Properties for
fire, police, water, and sewer facilities, public schools and parks, and other public facilities. Sites may be
designated for use of water infiltration under the Permit. Neither the Association, the PIC, nor the
Owners may object to the use of such sites for the designated public purposes.
10.3. Marketing and Sales Activities. Declarant and Builders authorized by Declarant may
construct and maintain upon portions of the Common Area such facilities and activities as, in Declarant's
sole opinion, may be reasonably required, convenient, or incidental to the construction or sale of Units,
including, but not limited to, business offices, signs, model units, and sales offices. Declarant and
authorized Builders shall have easements for access to and use of such facilities and shall not be
subject to fees or rental charges.
10.4. Right To Develop. Declarant and Declarant's employees, agents, and designees shall
have a right of access and use and an easement over and upon all of the Common Area for the purpose
of making, constructing, and installing such improvements to the Common Area as Declarant deems
appropriate in its sole discretion, so long as such improvements are not inconsistent with the permitted
uses and purposes of the Common Areas as defined in the Permit. Every Person that acquires any
interest in the Properties agrees not to protest, challenge, or otherwise object to the development of any
real property by Declarant which lies adjacent to the Properties, and which could be subjected to the
terms of this Declaration by Declarant.
10.5. Right To Approve Additional Covenants. No Person shall Record any declaration of
covenants, conditions, and restrictions or similar instrument affecting any portion of the Properties
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without Declarant's review and written consent. Any attempted Recordation without such consent shall
result in such instrument being void and of no force and effect unless subsequently approved by written
consent signed and Recorded by Declarant.
10.6. Right To Approve Changes in the Standards Within the Community. No amendment to
or modification of any Use Restrictions or Residential Design Guidelines shall be effective without prior
notice to and the written approval of Declarant so long as Declarant owns property subject to this
Declaration or which may become subject to this Declaration in accordance with Section 9.1.
10.7. Right To Transfer or Assign Declarant Rights. Any or all of Declarant's special rights
and obligations set forth in this Declaration or the Bylaws may be transferred in whole or in part to other
Persons; provided, the transfer shall not reduce an obligation nor enlarge a right beyond that which
Declarant has under this Declaration or the Bylaws. No such transfer or assignment shall be effective
unless it is in a written instrument signed and Recorded by Declarant. The foregoing sentence shall not
preclude Declarant from permitting other Persons to exercise, on a one time or limited basis, any right
reserved to Declarant in this Declaration where Declarant does not intend to transfer such right in its
entirety, and in such case it shall not be necessary to Record any written assignment unless necessary
to evidence Declarant's consent to such exercise.
10.8. Easement To Inspect and Right To Correct.
(a) Declarant reserves for Declarant and such other Persons as Declarant may
designate perpetual non-exclusive easements throughout the Properties to the extent reasonably
necessary for the purposes of access, inspecting, testing, redesigning, or correcting any portion of the
Properties, including Units and the Areas of Common Responsibility. Declarant shall have the right to
redesign or correct any part of the Areas of Common Responsibility, and the designees of Declarant shall
have the right to redesign or correct any Unit for which they were the Builder.
(b) Entry onto a Unit shall be after reasonable notice, except in an emergency. Entry
into a structure on a Unit shall be only after Declarant notifies the Unit's Owner and agrees with the Owner
regarding a reasonable time to enter the structures on such Unit to perform such activities.
(c) Any damage to a Unit or the Areas of Common Responsibility resulting from the
exercise of the easement or right of entry described in subsections (a) and (b) of this Section shall
promptly be repaired by, and at the expense of, the Person exercising the easement right. The exercise
of these easements shall not unreasonably interfere with the use of any Unit and entry onto any Unit shall
be made only after reasonable notice to the Owner or occupant.
10.9. Right to Notice of Design or Construction Claims. No Person shall retain an expert for
the purpose of inspecting the design or construction of any structures or improvements within the
community in connection with or in anticipation of any potential or pending claim, demand, or litigation
involving such design or construction unless Declarant and any builder involved in the design or
construction have been first notified in writing and given an opportunity to meet with the Owner of the
property to discuss the Owner's concerns and conduct their own inspection.
10.10. Termination of Rights. The rights contained in this Article shall not terminate until the
earlier of (a) 30 years from the date this Declaration is Recorded, or (b) Recording by Declarant of a
written statement that all sales activity has ceased.
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PART FIVE: PROPERTY RIGHTS WITHIN THE COMMUNITY
The nature of living in a planned community, with its wide array of properties and development
types and its ongoing development activity, requires the creation of special property rights and
provisions to address the needs and responsibilities of the Owners, Declarant, the Association, and
others within or adjacent to the community.
Article XI Easements
11.1. Easements in Common Area. Declarant grants to each Owner a nonexclusive right and
easement of use, access, and enjoyment in and to the Common Area, subject to:
(a) Applicable law, the Governing Documents and any other applicable covenants;
(b) Any restrictions or limitations contained in any deed conveying such property to
the Association;
(c) The Board's right to:
(i) adopt Rules and Regulations governing the use and enjoyment of the
Common Area, including rules limiting the number of guests who may use the Common Area;
(ii) suspend the right of an Owner to use recreational facilities within the
Common Area (A) for any period during which any charge against such Owner's Unit remains
delinquent, and (B)for a period not to exceed 30 days for a single violation or for a longer period in the
case of any continuing violation, of the Governing Documents after notice and a hearing pursuant to the
Bylaws;
(iii) dedicate or transfer all or any part of the Common Area, subject to such
approval requirements as may be set forth in this Declaration;
(iv) impose membership requirements and charge admission or other use
fees for the use of any recreational facility situated upon the Common Area (such membership
requirements, admission or use fees may, in the Board's discretion, differentiate between Members of
the Association and other persons entitled to use such facilities);
(v) permit use of any recreational facilities situated on the Common Area
by persons other than Owners, their families, lessees, and guests upon payment of use fees established
by the Board and designate other areas and facilities within the Areas of Common Responsibility as
open for the use and enjoyment of the public;
(vi) mortgage, pledge, or hypothecate any or all of its real or personal
property as security for money borrowed or debts incurred subject to the approval requirements
contained in this Declaration; and
(d) The rights of certain Owners to the exclusive use of those portions of the
Common Area designated "Exclusive Common Areas," as described in Article XII.
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Any Owner may extend his or her right of use and enjoyment to the members of his or her
family, lessees, and social invitees, as applicable, subject to reasonable regulation by the Board. An
Owner who leases his or her Unit shall be deemed to have assigned all such rights to the lessee of such
Unit for the period of the lease.
11.2. Easements of Encroachment. Declarant grants reciprocal appurtenant easements of
encroachment, and for maintenance and use of any permitted encroachment, between each Unit and
any adjacent Common Area and between adjacent Units due to the unintentional placement or settling
or shifting of the improvements constructed, reconstructed, or altered thereon (in accordance with the
terms of these restrictions) to a distance of not more than three feet, as measured from any point on the
common boundary along a line perpendicular to such boundary. However, in no event shall an
easement for encroachment exist if such encroachment occurred due to willful and knowing conduct on
the part of, or with the knowledge and consent of, the Person claiming the benefit of such easement.
11.3. Easements for Utilities, Etc.
(a) Installation and Maintenance. Declarant reserves for Declarant, so long as
Declarant owns any property described in Exhibit"A" of this Declaration or additional property subjected
to the Declaration, on behalf of Declarant, Declarant's nominees, successors, and assigns, perpetual
non-exclusive easements throughout the Properties (but not through a structure) to the extent
reasonably necessary for the purpose of:
(i) installing utilities and infrastructure to serve the Properties, walkways,
pathways and trails, drainage systems, street lights and signage on property which Declarant owns or
within public rights-of-way or easements reserved for such purpose on Recorded plats;
(ii) inspecting, maintaining, repairing, and replacing the utilities,
infrastructure, and other improvements described in Section 11.3(a)(i), and any Street Trees;
(iii) access to read utility meters; and
(iv) access to from the public rights-of-way to any wetland, body of water, or
water monitoring site to perform water monitoring and testing.
Notwithstanding anything to the contrary herein, this easement shall not entitle the holders to
construct or install any of the foregoing systems, facilities, or utilities over, under or through any existing
dwelling on a Unit, and any damage to a Unit resulting from the exercise of this easement shall promptly
be repaired by, and at the expense of, the Person exercising the easement. Exercise of this easement
shall not unreasonably interfere with the use of any Unit and, except in an emergency, entry onto any
Unit shall be made only after reasonable notice to the Owner or occupant. No utilities may be installed
or relocated on the Properties without approval of the Board or as provided by Declarant.
(b) Specific Easements. Declarant also reserves the non-exclusive right and power
to grant and Record such specific easements as may be necessary, in the sole discretion of Declarant,
in connection with the orderly development of any property described in Exhibit"A," or such additional
property subjected to the terms of the Declaration The location of the easement shall be subject to the
written approval of the Owner of the burdened property, which approval shall not unreasonably be
withheld, delayed or conditioned.
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11.4. Easements To Serve Additional Property. Declarant hereby reserves for Declarant and
Declarant's duly authorized agents, successors, assigns, and mortgagees, an easement over the
Common Area for the purposes of enjoyment, use, access, and development of any additional property
subjected to the terms of the Declaration, whether or not such property is made subject to this
Declaration. This easement includes, but is not limited to, a right of ingress and egress over the
Common Area for construction of roads and for connecting and installing utilities on such property.
Declarant agrees that Declarant and Declarant's successors or assigns shall be responsible for any
damage caused to the Common Area as a result of their actions in connection with development of such
property.
Declarant further agrees that if the easement is exercised for permanent access to such
property and such property or any portion thereof benefiting from such easement is not made subject to
this Declaration, or any other declaration of covenants, conditions, and restrictions under which an
owners' association is created or provided for, Declarant or Declarant's successors or assigns shall
enter into a reasonable agreement with the Association to share the cost of any maintenance which the
Association provides to or along any roadway providing access to such property. The allocation of costs
in any such agreement shall be based on the number of residential dwellings or commercial units on the
property served by the easement and not subject to this Declaration as a proportion of the total number
of residential dwellings within the Properties and on such benefited property.
11.5. Easements for Maintenance, Emergency, and Enforcement. In addition to the
easements granted on the face of the Plat, Declarant grants to the Local Jurisdiction and the Association
easements over the Properties as necessary to enable the Local Jurisdiction and the Association to fulfill
its maintenance and enforcement responsibilities under applicable law and Section 7.2, respectively.
The Association shall also have the right, but not the obligation, to enter upon any Unit for emergency,
security, and safety reasons, to perform maintenance and to inspect for the purpose of ensuring
compliance with and enforce the Governing Documents. Such right may be exercised by any member
of the Board and its duly authorized agents and assignees, and all emergency personnel in the
performance of their duties. Except in an emergency situation, entry shall only be during reasonable
hours and after notice to the Owner.
11.6. Technology Utility Easements. Declarant reserves, so long as Declarant owns any
property described on Exhibit "A" of this Declaration, and additional property subjected to this
Declaration by Declarant, perpetual, non-exclusive easements adjacent to the public rights-of-way
throughout the Properties, on behalf of Declarant, and Declarant's nominees, successors and assigns,
for the purpose of installing, operating, maintaining, repairing and replacing telephone, cable television,
telecommunications, security, and other systems for sending and receiving data and/or other electronic
signals ("Technology Utilities"), to serve the Properties and each Unit, such easements shall be
exclusive to Declarant until granted or conveyed to a third party, which may be exclusive, perpetual and
irrevocable, at which point such easements or interests may be more particularly described in the
instrument granting or conveying such easements or interests or on the recorded plats.
Declarant also reserves for Declarant the exclusive right and power to enter into contracts for the
construction, installation, and provision of any of the items addressed in this Section and to grant and
record in the public records such specific easements as may be necessary, in the sole discretion of
Declarant, in connection with the orderly development of any property described on Exhibit "A," and
additional property subjected to this Declarant by Declarant. Any such contract, agreement, or easement
may, in Declarant's sole discretion, grant the exclusive right to access or use of such system, including
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the portions of the systems installed on or in the Units, dwellings, and other structures constructed on
Units and Common Areas within the Properties.
Any such contract, agreement, or easement entered into by Declarant may require that the Board
enter into a bulk rate service agreement for the provision of services offered to all Units within the
Properties. In such case,the cost shall be a Common Expense of the Association and shall be assessed
as a part of the Base Assessment. If the service provides additional services or benefits to certain
Owners or Units at their request, such additional services or benefits shall be paid directly by the Owner
to the service provider, or become a Specific Assessment, as appropriate and specified in the agreement
between the Association and the service provider.
11.7 Side Yard Easements. Side yard easements are granted to the Owners of the Units
described herein along their common boundaries. Exhibit C provides an illustration of the location of the
side yard easements, and the manner in which the Owners of the affected Units are permitted to place
fences enclosing the easement areas granted by this Section. The Units burdened and benefited by side
yard easements are paired as follows: Lots 6 and 7; Lots 8 and 9; Lots 10 and 11; Lots 12 and 13; Lots
14 and 15; Lots 20 and 21; Lots 22 and 23; and Lots 24 and 25.
Each benefitted Unit Owners may make exclusive use of the side yard easement created for the
benefit of the Owner's Unit in the same manner and to the same extent that the Owner has the right to
exclusive use of the portions of Owner's own Unit not subject to an easement or land use restriction.
Each benefited Unit Owner agrees to defend, indemnify and hold harmless the Owner of the Unit
encumbered by the side yard easement (the "burdened Unit" for the purpose of this Section) from and
against all claims, liabilities and damages arising from or related to the use of the side yard easement by
the Owner of the Unit benefited by the side yard easement, and all of the Owners, guests or agents;
however, such obligation to indemnify the Owner of the burdened Unit shall not include actions engaged
in by the Owner of the burdened Unit, the Owner's guests and agents.
The Owner of a burdened Unit may enter the side yard easement area of a benefited Unit as
reasonably necessary to maintain, repair and replace the burdened Unit Owner's home, improvements
and land. The burdened Unit Owner shall provide 72 hours advance notice to the Owner of the benefited
Unit prior to undertaking any maintenance, repair or replacement requiring entry into the side yard
easement area, and the burdened Unit Owner shall restore the side yard easement area to substantially
the same condition that existed prior to the entry into the side yard easement.
Article XII Exclusive Common Areas
12.1. Purpose. Certain portions of the Common Area may be designated as Exclusive
Common Area and reserved for the exclusive use or primary benefit of specific Owners and occupants.
By way of illustration and not limitation, Exclusive Common Areas may include entry features, private
driveways, recreational facilities, landscaped medians and cul-de-sacs, lakes, and other portions of the
Common Area. All costs associated with maintenance, repair, replacement, and insurance of an
Exclusive Common Area shall be a Common Expense allocated among the Owners to which the
Exclusive Common Areas are assigned.
12.2. Designation. Initially, any Exclusive Common Area shall be designated as such in the
deed conveying such area to the Association, in this Declaration, or on the subdivision plat relating to
such Common Area; provided, any such assignment shall not preclude Declarant from later assigning
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use of the same Exclusive Common Area to additional Units, so long as Declarant has a right to subject
additional property to this Declaration pursuant to Section 9.1.
Thereafter, a portion of the Common Area may be assigned as Exclusive Common Area and
Exclusive Common Area may be reassigned upon approval of the Board and the vote of Members
representing a majority of the total Class "A" votes in the Association, including a majority of the votes of
the Owners affected by the proposed assignment or reassignment. As long as Declarant owns any
property subject to this Declaration or which may become subject to this Declaration in accordance with
Section 9.1, any such assignment or reassignment shall also require Declarant's written consent.
12.3. Use by Others. Upon approval of a majority of Owners of Units to which any Exclusive
Common Area is assigned, the Association may permit Owners of other Units, or other persons who are
not Owners, to use all or a portion of such Exclusive Common Area upon payment of reasonable user
fees, which fees shall be used to offset the Common Expenses attributable to such Exclusive Common
Area.
Article XIII Party Walls and Other Shared Structures
13.1. General Rules of Law to Apply. Each wall, fence, driveway, utility, sewer or similar
structure built as a part of the original construction on the Units which serves and/or separates any two
adjoining Units shall constitute a party structure. To the extent not inconsistent with the provisions of this
Section, the general rules of law regarding party walls and liability for property damage due to negligence
or willful acts or omissions shall apply thereto. Any tract which provides access to more than one Unit is
a party structure, the maintenance and repair of which is governed by the Declaration and this Article.
13.2. Maintenance; Damage and Destruction. The cost of reasonable repair and
maintenance of a party structure shall be shared equally by the Owners who make use of the party
structure. If a party structure is destroyed or damaged by fire or other casualty, then to the extent that
such damage is not covered by insurance and repaired out of the proceeds of insurance, any Owner
who has used the structure may restore it. If other Owners thereafter use the structure, they shall
contribute to the restoration cost in equal proportions. However, such contribution will not prejudice the
right to call for a larger contribution from the other users under any rule of law regarding liability for
negligent or willful acts or omissions.
13.3. Right to Contribution Runs With Land. The right of any Owner to contribution from any
other Owner under this Section shall be appurtenant to the land and shall pass to such Owner's
successors-in-title.
13.4. Disputes. Any dispute arising concerning a party structure shall be handled in
accordance with the provisions of Article XIV.
PART SIX: RELATIONSHIPS WITHIN AND OUTSIDE THE COMMUNITY
The growth and success of the Properties as a community in which people enjoy living, working,
and playing requires good faith efforts to resolve disputes amicably, attention to and understanding of
relationships within the community and with our neighbors, and protection of the rights of others who
have an interest in the community.
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Article XIV Dispute Resolution and Limitation on Litigation
14.1. Dispute Resolution Methods. The provisions of this Article shall govern the resolution of
all Claims between any Bound Party. Claims, disputes and controversies shall be resolved pursuant to
the Arbitration Agreements described in Section 14.4, unless specifically exempted from the Arbitration
Agreements by Section 14.3; if exempt from the Arbitration Agreements, the Exempt Claims may be
litigated in a court of competent jurisdiction. Before any Claims are brought by the Association against
any Person, the Association shall comply with the requirements of Sections 14.5.
14.2. Claims and Exempt Claims. Unless specifically identified as an Exempt Claim in this
Section, all claims or disputes arising out of or relating to (a) the interpretation, application or
enforcement of the Governing Documents; (b) the rights, obligations and duties of any Bound Party
under the Governing Documents; (c) relating to the design or construction of improvements on the
Properties, (d) breach of contract, (e) negligent or intentional misrepresentations or nondisclosure in the
inducement, (f) execution or performance of any contract related to the Condominium, including the
Arbitration Agreements described in this Article, (g) any alleged statutory violation, (h) any claim of bodily
injury related to the design or construction of the Units and the Common Elements, and (i) any claim
made under the Washington State Consumer Protection Act (collectively, "Claims") shall be subject to
the provisions of Section 14.4, which require the Claims to be arbitrated. Unless all necessary parties
otherwise agree, the following list of exemptions ("Exempt Claims") shall not be Claims, and shall not be
subject to the provisions of Section 14.4 requiring arbitration, nor shall Exempt Claims be subject to the
provisions of Section 14.5 - 14.7:
14.2.1 any suit by the Association against any Bound Party to collect assessments,
enforce liens, enforce the provisions of the Governing Documents;
14.2.2 any suit by the Association to obtain equitable relief (i.e., temporary restraining
order, injunction, or specific performance) and such other ancillary relief as the court may deem
necessary in order to maintain the status quo and preserve the Association's ability to enforce the
provisions of Articles III, Article IV and Article V;
14.2.3 any suit brought by the Association to challenge tax assessments;
14.2.4 any suit brought by the Association against any contractor or vendor arising out
of a contract for services or supplies between the Association and such contractor or vendor;
14.2.5 counterclaims brought by the Association in proceedings instituted against the
Association;
14.2.6 any suit by a Bound Party for declaratory or injunctive relief which seeks a
determination as to applicability, enforcement, clarification, or interpretation of any provisions of the
Declaration;
14.2.7 any suit between Owners, which does not include Declarant or the Association
as a party, if such suit asserts a Claim which would constitute a cause of action independent of the
Governing Documents if the amount in controversy exceeds$10,000.00;
14.2.8 any suit in which any indispensable party is not a Bound Party; and
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14.2.9 any suit as to which any applicable statute of limitations would expire within 180
days of giving the Notice required by Section 14.4(a), unless the party or parties against whom the Claim
is made agree to toll the statute of limitations as to such Claim for such period as may reasonably be
necessary to comply with this Article.
With the consent of all parties thereto, any of the above exemptions voluntarily may be submitted to the
arbitration procedures set forth in Section 14.4. If the Association seeks to litigate items 14.2.1 through
14.2.5, such litigation shall require the majority vote of the Board of Directors.
14.3. Bound Parties. Declarant, the Association, its officers, directors, and committee
members, all Persons subject to this Declaration, any Builder, and any Person not otherwise subject to
this Declaration who agrees to submit to this Article by contract with a Bound Party or by stipulation shall
be a"Bound Party"for the purposes of this Article XIV.
14.4. Arbitration Agreements. Each Bound Party covenants and agrees to submit all Claims
to the arbitration procedures set forth in this Section 14.4, in lieu of filing suit in any court. Any dispute
concerning the interpretation or the enforceability of the Arbitration Agreements described in this
paragraph, including, without limitation, revocability or voidability for any cause, the scope of arbitrable
issues, and any defense based upon waiver or estoppel, shall be decided by the Arbitrator. The decision
of the Arbitrator shall be final and binding and may be entered as a judgment in any court of competent
jurisdiction. These Arbitration Agreements shall inure to the benefit of, and be enforceable by, Declarant
and Declarant's subcontractors, agents, vendors, suppliers, design professionals, insurers and any other
person alleged to be liable for any defect in or to any Unit or the Common Elements; and shall be binding
upon all family members and tenants of the Owners and the Association. No participation of a party in a
judicial proceeding involving a matter which is arbitrable under these Arbitration Agreements shall be
deemed a waiver of the right of such party to enforce the Arbitration Agreements. If any provision of
these Arbitration Agreements shall be determined by the Arbitrator or any court to be unenforceable or to
have been waived, the remaining provisions shall be deemed to be severable therefrom and enforceable
according to their terms. Any party shall be entitled to recover reasonable attorney's fees, litigation
expenses and costs incurred in enforcing the Arbitration Agreements, as provided in Section 14.8.
14.4.1 Arbitration Agreement for Non-Warranty Claims. The Bound Parties agree that
any Claim which is not a Claim covered by a Warranty (as described in Section 14.4.2) shall be settled
and resolved by arbitration as described herein. The Arbitration shall be conducted by the American
Arbitration Association, Construction Arbitration Services, Inc., DeMars & Associates, Ltd., or another
arbitration service selected by the parties in writing, pursuant to the arbitration service's applicable
arbitration rules to the extent such rules are not inconsistent with this Arbitration Agreement. If the
parties fail to agree on the selection of an arbitration service, the choice of arbitration service shall be
that of the Claimant. All administrative fees of the arbitration service and fees of the Arbitrator shall be
borne equally by the parties to the arbitration, subject to the discretion of the Arbitrator to reallocate such
fees in the interest of justice.
The Arbitrator shall take such steps as may be necessary to hold a hearing within ninety (90)
days of the initial demand for arbitration and to conclude the hearing within three (3) days; and the
Arbitrator's written decision shall be made not later than fourteen (14) calendar days after the hearing.
These time limits are included in order to expedite the proceeding, but they are not jurisdictional, and the
Arbitrator may for good cause afford or permit reasonable extensions or delays, which shall not affect
the validity of the award. The written decision shall contain a brief statement of the claim determined
and the award made on each claim. In making the decision and award, the Arbitrator shall apply
applicable substantive law. The Arbitrator may award injunctive relief or any other remedy available from
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a judge, including without limitation joinder of parties or consolidation of this arbitration with any other
involving common issues of law or fact, or which may promote judicial economy, but shall not have the
power to award punitive or exemplary damages.
The parties expressly agree that this Arbitration Agreement involves and concerns interstate
commerce, and is governed by the Federal Arbitration Act (9 U.S.C. §1, et. seq.) to the exclusion of any
different or inconsistent state or local law, ordinance or judicial rule; and to the extent that any state or
local law, ordinance or judicial rule shall be inconsistent with any provision of the rules of the arbitration
service under which the arbitration proceeding shall be conducted, the arbitration service rules shall
govern the conduct of the proceeding.
14.4.2 Arbitration Agreement for Warranty Claims. The Bound Parties agree that any
Claim which is a Claim covered by a Warranty shall be settled and resolved by arbitration as described
in this Subsection 14.4.2. A Warranty Claim is a Claim, dispute or controversy between Bound Parties
arising from or related to alleged defects in the Unit or the Common Elements which are asserted after
the closing of the transfer of title to a Unit, and which are covered by a contractual warranty supplied to
the buyer of the Unit by the seller of the Unit. Warranty Claims shall be submitted to binding arbitration
commenced and conducted in accordance with the arbitration provision of the Warranty, even if such
provisions are inconsistent with the provisions of this Subsection 14.4.
14.4.3 Limitation Upon Amendments. The Declarant, the Association and all Owners
hereby acknowledge and agree that no amendment of this Declaration shall modify, alter or delete any
portion of the Arbitration Agreements in Section 14.4 of this Declaration without the written consent of
the Declarant attached to and recorded with such amendment, regardless of whether Declarant
continues to maintain an ownership interest in any Unit or membership in the Association.
14.4.4 Binding Upon Successors and Assigns. The Declarant, the Association and all
Owners acknowledge and agree that, by virtue of the recording of the Declaration, these Arbitration
Agreements shall run with title to the real property subject to the Declaration and all additional phases,
and shall be binding upon all Persons having any right, title or interest in all or any portion of the real
property subject to the Declaration their respective heirs, legal representatives, successors, successors-
in-title, and assigns, and shall be for the benefit of the Declarant and all Owners of Units and Common
Elements subject to this Declaration, regardless of whether Declarant continues to maintain an
ownership interest in any Unit or membership in the Association.
14.5. Consensus for Association Litigation of Claims. The Association shall not commence
arbitration, judicial or administrative proceedings to resolve a Claim without the approval of Members
representing at least 67% of the total votes in the Association. In the event the judicial or administration
proceeding is against the Declarant or any former Declarant, 75% of the total votes in the Association
are required to commence such proceeding. This Section shall not be amended unless such
amendment is approved by the percentage of votes, and pursuant to the same procedures, necessary to
institute proceedings as provided above.
14.6. Mandatory Procedures for Litigation of Claims.
14.6.1 Notice. Any Bound Party having a Claim ("Claimant") against any other Bound
Party ("Respondent") (collectively, the "Parties") shall notify each Respondent in writing (the "Notice"),
stating plainly and concisely: (a) the nature of the Claim, including the Persons involved and
Respondent's role in the Claim; (b) the legal basis of the Claim (i.e., the specific authority out of which
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the Claim arises); (c) Claimants proposed remedy; and (d) that Claimant will meet with Respondent to
discuss in good faith ways to resolve the Claim.
14.6.2 Negotiation and Mediation. The Parties shall make every reasonable effort to
meet in person and confer for the purpose of resolving the Claim by good faith negotiation. If requested
in writing, accompanied by a copy of the Notice, the Association's Board may appoint a representative to
assist the Parties in negotiation. If the Parties do not resolve the Claim within 30 days of the date of the
Notice (or within such other period as may be agreed upon by the Parties) ("Termination of
Negotiations"), Claimant shall have 30 additional days to submit the Claim to mediation under the
auspices of any Local Jurisdiction dispute resolution center or, if the Parties otherwise agree, to an
independent agency providing dispute resolution services in the area. If Claimant does not submit the
Claim to mediation within such time, or does not appear for the mediation, Claimant shall be deemed to
have waived the Claim, and Respondent shall be released and discharged from any and all liability to
Claimant on account of such Claim; provided, nothing herein shall release or discharge Respondent
from any liability to any Person other than the Claimant.
Any settlement of the Claim through mediation shall be documented in writing by the mediator
and signed by the Parties. If the Parties do not settle the Claim within 30 days after submission of the
matter to the mediation, or within such time as determined by the mediator, the mediator shall issue a
notice of termination of the mediation proceedings ("Termination of Mediation"). The Termination of
Mediation notice shall set forth that the Parties are at an impasse and the date that mediation was
terminated.
Within five (5) days of the Termination of Mediation, the Claimant shall make a final written
settlement demand ("Settlement Demand") to the Respondent, and the Respondent shall make a final
written settlement offer ("Settlement Offer") to the Claimant. If the Claimant fails to make a Settlement
Demand, Claimant's original Notice shall constitute the Settlement Demand. If the Respondent fails to
make a Settlement Offer, Respondent shall be deemed to have made a "zero" or "take nothing"
Settlement Offer.
14.6.3 Final and Binding Arbitration. If the Parties do not agree in writing to a settlement
of the Claim within 15 days of the Termination of Mediation, the Claimant shall have 15 additional days
to submit the Claim to arbitration in accordance with Section 14.4. If not timely submitted to arbitration
or if the Claimant fails to appear for the arbitration proceeding, the Claim shall be deemed abandoned,
and Respondent shall be released and discharged from any and all liability to Claimant arising out of
such Claim; provided, nothing herein shall release or discharge Respondent from any liability to Persons
other than Claimant. This subsection is an agreement to arbitrate and is specifically enforceable under
federal and state arbitration laws. The arbitration award (the "Award") shall be final and binding, and
judgment may be entered upon it in any court of competent jurisdiction to the fullest extent permitted
under federal and Washington State laws.
14.7 Allocation of Costs of Resolving Claims. Each Party shall bear its own costs, including
attorney's fees, and each Party shall share equally all charges rendered by the mediator(s) and all filing
fees and costs of conducting the arbitration proceeding ("Post Mediation Costs"), except as otherwise
ordered by the arbitrator pursuant to Section 14.4. Any Award which is equal to or more favorable to
Claimant than Claimants Settlement Demand shall add Claimant's Post Mediation Costs to the Award,
such costs to be borne equally by all Respondents. Any Award which is equal to or less favorable to
Claimant than any Respondents Settlement Offer shall award to such Respondent its Post Mediation
Costs, except as otherwise provided in this subsection.
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14.8 Enforcement of Resolution — Attorney's Fees and Costs. If the Parties agree to a
resolution of any Claim through negotiation or mediation in accordance with Section 14.4 and any Party
thereafter fails to abide by the terms of such agreement, or if the Parties agree to accept the Award
following arbitration and any Party thereafter fails to comply with such Award, then any abiding or
complying Party may file suit or initiate administrative proceedings to enforce such agreement or Award
without the need to again comply with the procedures set forth in Section 14.4. In such event, the Party
taking action to enforce the agreement or Award shall be entitled to recover from the non-complying
Party (or if more than one non-complying Party, from all such Parties pro rata) all costs incurred in
enforcing such agreement or Award, including, without limitation, attorneys' fees and court costs. If the
Bound Parties litigate an Exempt Claim, the prevailing party in such litigation shall be entitled to payment
of all attorney's fees, litigation and costs by the non-prevailing party.
Article XV Mortgagee Provisions
The following provisions are for the benefit of holders, insurers and guarantors of first Mortgages
on Units in the Properties. The provisions of this Article apply to both this Declaration and to the Bylaws,
notwithstanding any other provisions contained therein.
15.1. Notices of Action. An institutional holder, insurer, or guarantor of a first Mortgage which
provides a written request to the Association (such request to state the name and address of such
holder, insurer, or guarantor and the street address of the Unit to which its Mortgage relates, thereby
becoming an "Eligible Holder"), will be entitled to timely written notice of:
(a) Any condemnation loss or any casualty loss which affects a material portion of
the Properties or which affects any Unit on which there is a first Mortgage held, insured, or guaranteed
by such Eligible Holder;
(b) Any delinquency in the payment of assessments or charges owed by a Unit
subject to the Mortgage of such Eligible Holder, where such delinquency has continued for a period of 60
days, or any other violation of the Governing Documents relating to such Unit or the Owner or Occupant
which is not cured within 60 days;
(c) Any lapse, cancellation, or material modification of any insurance policy
maintained by the Association; or
(d) Any proposed action which would require the consent of a specified percentage
of Eligible Holders.
15.2. Special FHLMC Provision. So long as required by the Federal Home Loan Mortgage
Corporation or any successor to FHLMC, the following provisions apply in addition to and not in lieu of
the foregoing. Unless at least 67% of the first Mortgagees or Members representing at least 67% of the
total Association vote consent, the Association shall not:
(a) By act or omission seek to abandon, partition, subdivide, encumber, sell, or
transfer all or any portion of the real property comprising the Common Area which the Association owns,
directly or indirectly (the granting of easements for utilities or other similar purposes consistent with the
intended use of the Common Area shall not be deemed a transfer within the meaning of this subsection);
page 42
(b) Change the method of determining the obligations, assessments, dues, or other
charges which may be levied against an Owner of a Unit (a decision, including contracts, by the Board or
provisions of any declaration subsequently Recorded on any portion of the Properties shall not be
subject to this provision where such decision or subsequent declaration is otherwise authorized by this
Declaration);
(c) By act or omission change, waive, or abandon any scheme of regulations or
enforcement pertaining to architectural design, exterior appearance or maintenance of Units and the
Common Area (the issuance and amendment of architectural standards, Use Restrictions pursuant to
Article III, procedures, or Rules and Regulations shall not constitute a change, waiver, or abandonment
within the meaning of this provision);
(d) Fail to maintain insurance, as required by this Declaration; or
(e) Use hazard insurance proceeds for any Common Area losses for other than the
repair, replacement, or reconstruction of such property.
First Mortgagees may, jointly or singly, pay taxes or other charges which are in default and
which may or have become a charge against the Common Area and may pay overdue premiums on
casualty insurance policies or secure new casualty insurance coverage upon the lapse of an Association
policy, and first Mortgagees making such payments shall be entitled to immediate reimbursement from
the Association.
15.3. Other Provisions for First Lien Holders. To the extent not inconsistent with Washington
law:
(a) Any restoration or repair of the Properties after a partial condemnation or
damage due to an insurable hazard shall be performed substantially in accordance with this Declaration
and the original plans and specifications unless the approval is obtained of the Eligible Holders of first
Mortgages on Units to which at least 51% of the votes of Units subject to Mortgages held by such
Eligible Holders are allocated.
(b) Any election to terminate the Association after substantial destruction or a
substantial taking in condemnation shall require the approval of the Eligible Holders of first Mortgages on
Units to which at least 51% of the votes of Units subject to Mortgages held by such Eligible Holders are
allocated.
15.4. Amendments to Documents. The following provisions do not apply to amendments to
the constituent documents or termination of the Association as a result of destruction, damage, or
condemnation pursuant to Section 15.3(a) and (b), or to the addition of land in accordance with Article
IX.
(a) The consent of Members representing at least 67% of the Class "A" votes and
of Declarant, so long as Declarant owns any land subject to this Declaration, and the approval of the
Eligible Holders of first Mortgages on Units to which at least 67% of the votes of Units subject to a
Mortgage appertain, shall be required to terminate the Association.
page 43
(b) The consent of Members representing at least 67% of the Class "A" votes and
of Declarant, so long as Declarant owns any land subject to this Declaration, and the approval of Eligible
Holders of first Mortgages on Units to which at least 51% of the votes of Units subject to a Mortgage
appertain, shall be required materially to amend any provisions of the Declaration, Bylaws, or Articles of
Incorporation, or to add any material provisions thereto which establish, provide for, govern, or regulate
any of the following:
(i) voting;
(ii) assessments, assessment liens, or subordination of such liens;
(iii) reserves for maintenance, repair, and replacement of the Common
Area;
(iv) insurance or fidelity bonds;
(v) rights to use the Common Area;
(vi) responsibility for maintenance and repair of the Properties;
(vii) expansion or contraction of the Properties or the addition, annexation,
or withdrawal of Properties to or from the Association;
(viii) boundaries of any Unit;
(ix) leasing of Units;
(x) imposition of any right of first refusal or similar restriction of the right of
any Owner to sell,transfer, or otherwise convey his or her Unit;
(xi) establishment of self-management by the Association where
professional management has been required by an Eligible Holder; or
(xii) any provisions included in the Governing Documents which are for the
express benefit of holders, guarantors, or insurers of first Mortgages on Units.
15.5. No Priority. No provision of this Declaration or the Bylaws gives or shall be construed as
giving any Owner or other party priority over any rights of the first Mortgagee of any Unit in the case of
distribution to such Owner of insurance proceeds or condemnation awards for losses to or a taking of
the Common Area.
15.6. Notice to Association. Upon request, each Owner shall be obligated to furnish to the
Association the name and address of the holder of any Mortgage encumbering such Owner's Unit.
15.7. Failure of Mortgagee To Respond. Any Mortgagee who receives a written request from
the Board to respond to or consent to any action shall be deemed to have approved such action if the
Association does not receive a written response from the Mortgagee within 30 days of the date of the
page 44
Association's request, provided such request is delivered to the Mortgagee by certified or registered
mail, return receipt requested.
15.8. Construction of Article XV. Nothing contained in this Article shall be construed to reduce
the percentage vote that must otherwise be obtained under this Declaration, the Bylaws, or Washington
law for any of the acts set out in this Article.
15.9. Amendment by Board. Should the Federal National Mortgage Association or FHLMC
subsequently delete any of its respective requirements which necessitate the provisions of this Article or
make any such requirements less stringent, the Board, without approval of the Owners, may record an
amendment to this Article to reflect such changes.
PART SEVEN: CHANGES IN THE COMMUNITY
Communities are dynamic and constantly evolving as circumstances, technology, needs and
desires, and laws change, as the residents' age and change over time, and as the surrounding
community changes. The Properties and its Governing Documents must be able to adapt to these
changes while protecting the things that make this community unique.
Article XVI Changes in Ownership of Units
Any Owner desiring to sell or otherwise transfer title to his or her Unit shall give the Board at
least seven days' prior written notice of the name and address of the purchaser or transferee, the date of
such transfer of title, and such other information as the Board may reasonably require. Each transferee
of a Unit shall, within seven days of taking title to a Unit, confirm that the information previously provided
by the transferor is complete and accurate. The transferor shall continue to be jointly and severally
responsible with the transferee for all obligations of the Owner of the Unit, including assessment
obligations, until the date upon which such notice is received by the Board, notwithstanding the transfer
of title.
page 45
Article XVII Changes in Common Area
17.1. Condemnation. If any part of the Common Area shall be taken (or conveyed in lieu of
and under threat of condemnation by the Board acting on the written direction of Members representing
at least 67% of the total Class "A" votes in the Association and of Declarant, as long as Declarant owns
any property subject to the Declaration or which may be made subject to the Declaration in accordance
with Section 9.1) by any authority having the power of condemnation or eminent domain, each Owner
shall be entitled to written notice of such taking or conveyance prior to disbursement of any
condemnation award or proceeds from such conveyance. Such award or proceeds shall be payable to
the Association to be disbursed as follows:
If the taking or conveyance involves a portion of the Common Area on which improvements
have been constructed, the Association shall restore or replace such improvements on the remaining
land included in the Common Area to the extent available, unless within 60 days after such taking
Declarant, so long as a Declarant owns any property subject to the Declaration or which may be made
subject to the Declaration in accordance with Section 9.1, and Members representing at least 67%of the
total Class "A" vote of the Association shall otherwise agree. Any such construction shall be in
accordance with plans approved by the Board. The provisions of Section 7.3(c) regarding funds for
restoring improvements shall apply.
If the taking or conveyance does not involve any improvements on the Common Area, or if a
decision is made not to repair or restore, or if net funds remain after any such restoration or replacement
is complete, then such award or net funds shall be disbursed to the Association and used for such
purposes as the Board shall determine.
17.2. Partition. Except as permitted in this Declaration, the Common Area shall remain
undivided, and no Person shall bring any action partition of any portion of the Common Area without the
written consent of all Owners and Mortgagees. This Section shall not prohibit the Board from acquiring
and disposing of tangible personal property nor from acquiring and disposing of real property which may
or may not be subject to this Declaration.
17.3. Transfer or Dedication of Common Area. The Association may transfer, dedicate, or
grant easements over portions of the Common Area to any other local, state, or federal governmental or
quasi-governmental entity without a vote of the Owners subject to compliance with Section 15.2, if
applicable.
Article XVIII Amendment of Declaration
18.1. By Declarant. In addition to specific amendment rights granted elsewhere in this
Declaration, until conveyance of the first Unit to a Person other than a Builder, Declarant may unilaterally
amend this Declaration for any purpose. Thereafter, Declarant may unilaterally amend this Declaration if
such amendment is necessary (a)to bring any provision into compliance with any applicable
governmental statute, rule, regulation, or judicial determination; (b)to enable any reputable title
insurance company to issue title insurance coverage on the Units; (c)to enable any institutional or
governmental lender, purchaser, insurer or guarantor of mortgage loans, including, for example, the
Federal National Mortgage Association or Federal Home Loan Mortgage Corporation, to make,
purchase, insure or guarantee mortgage loans on the Units; or (d)to satisfy the requirements of any
local, state or federal governmental agency. However, any such amendment shall not adversely affect
the title to any Unit unless the Owner shall consent in writing.
page 46
In addition, so long as Declarant owns property described in Exhibit "A" for development as part
of the Properties, Declarant may unilaterally amend this Declaration for any other purpose, provided the
amendment has no material adverse effect upon any right of any Owner or unless such Owner shall
consent in writing.
18.2. By Members. Except as otherwise specifically provided above and elsewhere in this
Declaration, this Declaration may be amended only by the affirmative vote or written consent, or any
combination thereof, of Members representing 67% of the total Class "A" votes in the Association,
including 67%of the Class "A" votes held by Members other than Declarant, and Declarant's consent, so
long Declarant owns any property subject to this Declaration or which may become subject to this
Declaration in accordance with Section 9.1. In addition, the approval requirements set forth in Article XV
shall be met, if applicable.
Notwithstanding the above, the percentage of votes necessary to amend a specific clause shall
not be less than the prescribed percentage of affirmative votes required for action to be taken under that
clause.
18.3. Validity and Effective Date. No amendment may remove, revoke, or modify any right or
privilege of Declarant or the Class "B" Member without Declarant's written consent or the Class "B"
Member, respectively(or the assignee of such right or privilege).
If an Owner consents to any amendment to this Declaration or the Bylaws, it will be conclusively
presumed that such Owner has the authority to consent, and no contrary provision in any Mortgage or
contract between the Owner and a third party will affect the validity of such amendment.
Any amendment shall become effective upon Recording, unless a later effective date is
specified in the amendment. Any procedural challenge to an amendment must be made within six
months of its Recordation or such amendment shall be presumed to have been validly adopted. In no
event shall a change of conditions or circumstances operate to amend any provisions of this Declaration.
18.4. Exhibits. Exhibits "A" and "C" attached to this Declaration are incorporated by this
reference. Amendment of Exhibit "A" shall be governed by this Article, and amendments to Exhibit C
shall only be made with the consent of the Owners of any Unit affected by the proposed amendment.
Exhibit "B" is incorporated by reference and may be amended pursuant to Sections 18.1 and 18.2, or as
provided in Article III.
Exemption - Chapter 64.90 RCW. This community is exempt from the requirements of Chapter
64.90 RCW, based upon the provisions of RCW 64.90.075(2). The annual average assessment of all
units restricted to residential purposes, exclusive of optional user fees and any insurance premiums,
may not exceed three hundred dollars ($300.00), as adjusted pursuant to RCW 64.90.065. The
assessment may not be increased above the limitation prior to a transition meeting from Declarant
control to Owner control without the consent of Owners, other than the Declarant, holding ninety percent
(90%) of the votes in an organization of Owners as described in Article VI.
page 47
•
IN WITNESS WHEREOF, the undersigned Declarant has executed this Declaration the date
and year first written above.
By:
Michael Merritt
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ynt j Merritt
STATE OF WASHINGTON )
ss.
COUNTY OF KING
I certify that I know or have satisfactory evidence that Michael Merritt and Cynthia Merritt are the
persons who appeared before me, acknowledged that they signed this instrument, and acknowledged it
to be their free and voluntary act for the uses and purposes mentioned in this instrument.
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SUBSCRIBED and SWORN to before me this � day of , 2019.
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page 48
EXHIBIT "A"
Land Submitted to Declaration
The West 548 feet of Government Lot 1, Section 3, Township 23 North, Range 5
East, W.M. in King County, Washington;
EXCEPT the North 744.708 feet thereof;
AND EXCEPT any portion, if any, within county road.
page 49
EXHIBIT "B"
Initial Use Restrictions
The following Use Restrictions shall apply to all of the Properties until such time as they are
amended, modified, repealed, or limited by the Association pursuant to Article III of the Declaration.
(a) General. The Properties shall be used only for residential, recreational, and related
purposes (which may include, without limitation, offices for any property manager retained by the
Association or business offices for Declarant, approved Builders, or the Association consistent with this
Declaration and any Supplemental Declaration).
(b) Restrictions. The following are prohibited within the Properties unless expressly
authorized by, and then subject to such conditions as may be imposed by, the Board:
(1) Temporary Structures Prohibited. No basement, tent, shack, garage, barn or
other outbuilding or buildings or any structure of a temporary or moveable character erected or placed on
the Properties shall at any time be used as living quarters except as specifically authorized by the PIC.
(2) Nuisances. No noxious or undesirable thing, activity or use of any Unit in the
Properties shall be permitted or maintained. If the PIC shall determine that a thing or use of any Unit or any
part of the Properties is undesirable or noxious, such determination shall be conclusive. The PIC may
recommend and the Board may direct that steps be taken as is reasonably necessary including, without
limitation, the institution of legal action or the imposition of fines in the manner authorized by RCW Chapter
64.38, to abate any activity, remove anything or terminate any use of property which is determined by the
PIC or described in this Declaration to constitute a nuisance.
(3) Limitation on Animals. No animal, livestock or poultry of any kind shall be raised,
bred or kept on any Lot, except cats, dogs, birds or fish may be kept if they are not kept, bred or maintained
for any commercial purpose, and they shall not be kept in numbers or under conditions reasonably
objectionable in a closely built-up residential community. Animals shall not be allowed to roam loose
outside the limits of any Unit on which they are kept. Provided, however, the Board in its discretion may
designate certain tracts as off-leash dog areas, subject to reasonable rules, so long as (i) the dog(s) are
under voice command; (ii) the dog(s) are non-aggressive; and (iii) all solid waste is removed by the Owner
utilizing the Tract for such purposes. Any dogs must be kept so as to minimize excessive noise from
barking or otherwise shall be considered a nuisance according to the terms of this Declaration. Each
Owner shall be responsible for cleaning up after his or her animal for any waste or damage to any area
outside of the Owner's Unit.
(4) Limitation on Signs. The Association may regulate or prohibit all signs, to the full
extent allowed by State law. The Association may establish guidelines or restrictions including duration,
location and appearance of signs. In addition to other rights reserved to Declarant in the Declaration,
Declarant hereby reserves for itself and all Builders, so long as Declarant or any Builders own any Lot, the
right to maintain upon the Properties such signs as in the opinion of Declarant are required, convenient or
incidental to the merchandising and sale of the Lots.
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(5) Completion of Construction Projects. The work of construction of all building and
structures shall be pursued diligently and continuously from commencement of construction until the
structures are fully completed and painted. All structures shall be completed as to external appearance,
including finish painting, within one year of the date of commencement of construction, except such
construction as is performed by Declarant, which shall be exempt from the limitations contained in this
Section. Front yard landscaping must be completed within 90 days of completion of a Unit, and rear yard
landscaping must be completed within six months of completion of a Unit. Except with the approval of the
Board, no person shall reside on the premises of any Unit until such time as the improvements to be
erected on the Unit in accordance with the plans and specifications approved by the Board have been
completed.
(6) Unsightly Conditions. No unsightly conditions shall be permitted to exist on any
Unit. Unsightly conditions shall include, without limitation, laundry hanging or exposed in view for drying,
litter, trash,junk or other debris; inappropriate, broken or damaged furniture or plants; non-decorative gear,
equipment, cans, bottles, ladders and other such items; and no awnings, air conditioning units, heat pumps
or other projections shall be placed on the exterior walls of any Unit unless prior written approval shall have
been obtained from the PIC. Garbage containers and recycle bins are to be stored so as not to be seen
from the street, except on pick-up days. Owners should insure garbage containers are secure from
overflowing or spills and to keep litter and debris picked up around their property at all times.
7 Antennas, Satellite Reception. Satellite dishes of no more than one meter in
diameter or diagonal measurement are permitted on the Properties without PIC approval. All over-the-air
reception devices shall comply with the Residential Design Guidelines or other applicable rules adopted by
the Association pertaining to the means, method and location of antennas and satellite dishes. PIC
approval will be consistent with FCC regulations.
(8) Setbacks. No building shall be located on any Unit nearer to the front lot line or
nearer to the side street than the minimum building setback lines adopted by the governmental authority
with jurisdiction over the Properties.
(9) Roofs. Roofs on all buildings must be finished with materials approved for use by
the PIC. More than one type of material may be approved.
(10) Fences, Walls. In order to preserve the aesthetics of the Properties, no fence,
wall or hedge shall be erected or placed on any Unit unless prior written approval has been obtained from
the PIC. The design and color of any fence on the Properties,whether visible to the other Units or not,shall
be constructed and finished according to the standard fence detail, as such detail is initially designated by
the PIC. If a standard fence detail is attached to this Declaration, such fence detail and any required color
for a fence may be modified by the PIC.
(11) Residential Use Only. Except for Declarant's or a Builder's temporary sales,
construction offices and model homes, no Unit shall be used for other than one detached single-family
residential dwelling,with driveway parking used for not more than three cars.
(12) Underground Utilities Required. Except for any facilities or equipment provided by
the Declarant or any utility, all electrical service, telephone lines and other outdoor utility lines shall be
placed underground.
page 2
(13) Sales and Construction Facilities. Notwithstanding any other provision in this
Declaration to the contrary, it is expressly permissible for Declarant, a Builder, and their agents, employees
or nominees,to maintain on any portion of the Properties owned by Declarant, a Builder or on the Common
Areas such facilities as the they may reasonably feel are required, convenient or incidental to the
construction and/or sales of Units or improvements thereon. Declarant may permit, in writing, an individual
Owner or third party purchaser to maintain temporary equipment and construction material on the Owner's
Unit when the Declarant feels the same is reasonably required, convenient or incidental to construction
activities for improvement of the Unit.
(14) Drainage Waters. Following original grading of the roads and ways of the
Properties, no drainage waters shall be diverted or blocked from their natural course so as to discharge
upon any public road rights-of-way. The Owner of any Unit, prior to making any alteration in the drainage
system, must make application to and receive approval from the applicable governmental jurisdiction. Any
enclosing of drainage waters in culverts or drains or rerouting thereof across any Unit as may be
undertaken by or for the Owner of any Unit shall be done by and at the expense of such Owner.
(15) NBA Restrictions and Maintenance. All areas designated on the Plat as Native
Growth Protection Area, Sensitive Area, Critical Area, Buffer, Natural Buffer Area, Wetland or Wetland
Buffer (collectively, "NBA") shall be left permanently undisturbed in a substantially natural state. No
clearing, grading, filling, building construction or placement, or road construction of any kind shall occur
within these areas, except the activities approved by the Local Jurisdiction. The Association shall be
responsible for operating, maintaining and restoring the condition of the NBA in the event any unauthorized
disturbance occurs; however, in the event that this disturbance is determined to be the fault of a party, the
Association may pursue a claim for reimbursement of damages to the NBA from the party disturbing the
area. The Association shall be guided in its maintenance of the NBA the provisions contained in the King
County Code.
(16) Deviation by Consent of Declarant. Declarant hereby reserve the right to enter
into an agreement with the Owner of any Unit (without the consent of the Owner of any other Unit) to
deviate from the conditions, restrictions, limitations or agreements contained in this Declaration. Any
deviation shall be manifested in an agreement in writing and shall not constitute a waiver of any such
condition; restriction, limitation, or agreement as to the remaining Lots located on the Properties; and the
condition, restriction, limitation or agreement waived by Declarant shall remain fully enforceable as to all
other Lots located in the Properties.
(17) Timeshares. No operation of a timesharing, fraction-sharing, or similar program
whereby the right to exclusive use of the Unit rotates among participants in the program on a fixed or
floating time schedule over a period of years, is permitted. However, the Declarant may operate such a
program and may permit others to operate such a program in the Plat.
(18) Conversion of Carports or Garages. Conversion of any carport, garage, attic, or
other unfinished space, other than a basement, to finished space for use as an apartment or other
integral part of the living area on any Unit is prohibited.
page 3
(19) Irrigation Systems. No sprinkler or irrigation systems or wells of any type may
draw upon water from lakes, creeks, streams, rivers, ponds, wetlands, canals, or other ground or surface
waters within the Properties, except that Declarant and its designees shall have the exclusive right to
draw water from such sources and to reduce the level of such bodies of water, if and to the extent
allowed by the Permits.
(20) Burning. No open-air burning or use of wood stoves is permitted, except in
compliance with Local Jurisdiction Ordinances. However, outdoor cooking facilities, such as barbeques,
are permissible subject to rules, regulations, and Local Jurisdiction Ordinances.
(21) Limitation on Storage of Vehicles — Temporary Permits for RVs. Except as
hereinafter expressly provided, the Units, Common Areas and/or streets located on the Properties shall not
be used for the storage and/or overnight parking of any vehicle other than private family automobiles,trucks,
motorcycles and commercial vehicles operated by a person residing at the Unit (provided that such
commercial vehicles contain a single rear axle). Vehicles shall not be parked on a driveway or street in
lieu of being parked in an available space in a garage, except as otherwise provided by Rules established
by the Board. Boats, boat trailers, house trailers, campers, trucks, trucks with a camper, or other
recreational vehicles or similar object may not be stored and/or parked overnight on any part of the
Properties, except as specified herein, or as may be permitted by Rules established by the Board. No
inoperable vehicles of any kind shall be parked, stored, maintained, or constructed on any Unit or street
unless stored in a garage. Notwithstanding the foregoing, Owners who have guests visiting them intending
to stay in a camper,trailer, or other form of recreational vehicle, may secure written permission from the PIC
for guests to park a vehicle on the driveway of a Unit for a period of up to 72 hours, and not to exceed two
weeks in any calendar year. The privilege shall only exist, however, after the written permission has been
obtained from the PIC or its authorized representative to park at the Unit. An Owner that stores a recreation
vehicle off-site may park the vehicle on the driveway of a Unit for 48 hours for the purpose of preparing for
departure or upon return,to facilitate preparation and return from travel.
(22) Changing Unit Contours and Drainage; Subdivisions. The surface grade or
elevation of the various Units shall not be substantially altered or changed in any manner which would
affect the relationship of such Unit with other Units, or which would result in materially obstructing the
view from any other Unit, or which would otherwise produce an effect out of harmony with the general
development of the immediate area in which said Unit is located. Whether or not such alteration or
change in the elevation or grade of any Unit would be prohibited shall be determined by the Declarant
during the Class "B" Control Period in its sole and uncontrolled discretion. No further subdivision of any
Unit without resubmitting for formal plat procedure is allowed. The sale or lease of less than a whole Unit
in the Plat is expressly prohibited.
(23) Garbage Disposal. The Owners of the Units shall ensure that no garbage can or
other receptacle will be visible from any place outside the residence except on collection day.
(24) Prohibited Materials. In order to protect the environment, sensitive areas and
water quality precautions must be taken with the storm drainage system on site. The following materials
shall not be allowed to enter any surface or subsurface part of the public and/or private drainage system.
page 4
A 9 r
(i) Petroleum products including, but not limited to, oil, gasoline, grease,
fuel oil and heating oil.
(ii) Trash and/or debris.
(iii) Animal waste.
(iv) Chemicals and/or paint.
(v) Steam cleaning waste.
(vi) Washing uncured concrete for cleaning and/or finishing purposes or to
expose aggregate.
(vii) Laundry wastes or other soaps.
(viii) Pesticides, herbicides, or fertilizers.
(ix) Sewerage.
(x) Heated water.
(xi) Chlorinated water or chlorine.
(xii) Degreasers and/or solvents.
(xiii) Bark or other fibrous material.
(xiv) Antifreeze and/or other automotive products.
(xv) Lawn clippings, leaves or branches.
(xvi) Animal carcasses.
(xvii) Silt.
(xviii) Acids or alkalis.
(xix) Recreation vehicle wastes.
(xx) Dyes, unless prior permission has been granted by the Local
Jurisdiction.
(xxi) Construction materials.
Any Owner found to not be in compliance with the use, handling or storage of these items shall
immediately remove and remedy the matter, upon written notice of the Association or the Local
Jurisdiction.
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