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HomeMy WebLinkAboutRC 20210915000852Instrument Number: 20210915000852 Document:COV Rec: S539.00 Page-1 of 67 Record Date:9/15/2021 11:35 AM King County, WA When recorded, return to CITY OF RENTON City Clerk Division 1055 South Grady Way, Suite 728 Renton, WA 98057 DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS, AND EASEMENTS FOR BETHANY CORNER GRANTOR: BONA FIDE PROPERTIES 2, LLC GRANTEE: THE GENERAL PUBLIC; OWNERS WITHIN THE PLAT OF BETHANY CORNER LEGAL DESCRIPTION: LOT 11, BLOCK 7, AKER'S FARMS NO.6, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 42 OF PLATS, PAGE 15, RECORDS OF KING COUNTY, WASHINGTON. LOT 12, BLOCK 7, AKER'S FARMS NO. 6 PER PLAT, VOLUME 42 OF PLATS, PAGE 15, KING COUNTY, WASHIN`GTON ASSESSOR'S TAX PARCEL ID#: 0088000560, 0088000570 DEPARTMENT OF ASSESSMENTS Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-2 of 67 Record Date:9/15/2021 11:35 AM King County, WA DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS, AND EASEMENTS FOR BETHANY CORNER THIS DECLARATION is made by BONA FIDE PROPERTIES 2, LLC, a Washington limited liability company ("Declarant"), as of the day of its recording, 2021. Contents ARTICLE 1: DEFINITIONS.........................................................................................10 1.1 Words Defined..................................................................................................10 1.2 Form of Words..................................................................................................13 1.3 Statutory Definitions..........................................................................................13 ARTICLE 2: CREATION OF COMMUNITY................................................................13 2.1 Submission of Property to Act...........................................................................13 2.2 Conflict Provisions............................................................................................13 ARTICLE 3: NAME OF COMMUNITY........................................................................14 ARTICLE 4: DESCRIPTION OF REAL PROPERTY..................................................14 ARTICLE 5: DESCRIPTION OF COMMON ELEMENTS...........................................14 5.1 Storm Drainage Area........................................................................................14 5.2 Sensitive Area...................................................................................................14 5.3 Sidewalk and Landscape Strip.........................................................................14 5.4 Street Lighting...................................................................................................14 5.5 Storm Drainage.................................................................................................15 5.6 Irrigation............................................................................................................15 5.7 Other.................................................................................................................15 ARTICLE 6: DESCRIPTION OF UNITS; ALLOCATED INTERESTS .........................15 6.1 Number and Identification of Units....................................................................15 6.2 Unit Data...........................................................................................................15 6.3 Allocated Interest..............................................................................................15 ARTICLE 7: USE OF COMMON ELEMENTS.............................................................15 7.1 Description. Common Elements are described in Article 5...............................15 7.2 Use...................................................................................................................15 7.3 Conveyance or Encumbrance of Common Elements.......................................15 ARTICLE8: RESERVED............................................................................................16 Bethany Corner Declaration Page 2 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-3 of 67 Record Date:9/15/2021 11:35 AM King County, WA ARTICLE 9: PARKING AND STORAGE.....................................................................16 9.1 Garage and Storage in Units............................................................................16 9.2 Use of Parking Spaces and Driveways.............................................................16 ARTICLE 10: PERMITTED USES, MAINTENANCE OF UNITS; CONVEYANCES ......16 10.1 Use; Timesharing Prohibited.........................................................................16 10.2 Commercial Uses..........................................................................................16 10.3 Leasing..........................................................................................................18 10.3.1 Association Rights against Tenants........................................................18 10.3.2 Documents to Tenants............................................................................18 10.3.3 Leasing Restrictions................................................................................19 10.4 Maintenance of Units, and Common Elements.............................................19 10.4.1 Unit Owner Responsibility.......................................................................20 10.4.2 Refuse — General....................................................................................20 10.4.3 Inspection............................................................................................... 20 10.5 Architectural..................................................................................................20 10.5.1 Jurisdiction and Purpose.........................................................................20 10.5.2 Approval Procedures..............................................................................21 10.5.3 Compliance with Architectural Requirements and Rules ........................21 10.5.4 Approval Prior to Work Start ...................................................................21 10.5.5 Submission of Plans and Application......................................................22 10.5.6 Minimum Requirements for Dwellings......................................................22 10.5.7 Minimum Requirements for Outbuildings................................................22 10.5.8 Requirements for Fences, Screening, Walls, Decks and Porches .......... 23 10.5.9 Minimum Requirements for Landscaping................................................23 10.5.10 ACC Rules and Regulations...................................................................23 10.5.11 Alterations of Units..................................................................................23 10.5.12 Interaction of the ACC and the Declarant . .............................................. 24 10.6 Protected Antennas.......................................................................................24 10.7 Effect on Insurance........................................................................................24 10.8 Use or Alteration of Common Elements........................................................24 10.9 Signs.............................................................................................................25 Bethany Corner Declaration Page 3 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-4 of 67 Record Date:9/15/2021 11:35 AM King County, WA 10.10 Pets...............................................................................................................25 10.11 Quiet Enjoyment............................................................................................25 10.12 Offensive Activity...........................................................................................25 10.13 Conveyance by Owners, Notice Required.....................................................25 10.14 Solar Panels..................................................................................................26 10.16 No Smoking Policy........................................................................................27 ARTICLE 11: DEVELOPMENT RIGHTS AND SPECIAL DECLARANT RIGHTS .....27 11.1 Development Rights......................................................................................27 11.2 Special Declarant Rights...............................................................................27 11.3 Transfer.........................................................................................................27 11.4 Miscellaneous................................................................................................27 11.5 Voluntary Termination of Declarant Rights....................................................27 11.6 Amendments, Extension of Time Limits, Etc.................................................27 11.7 Unit Combination...........................................................................................28 11.8 Declarant's Easements..................................................................................28 ARTICLE 12: ENTRY FOR REPAIR OR MAINTENANCE........................................28 ARTICLE 13: OWNERS ASSOCIATION.......................................................................29 13.1 Form of Association.......................................................................................29 13.2 Bylaws...........................................................................................................29 13.3 Qualification and Transfer.............................................................................29 13.4 Powers and Duties of the Association...........................................................29 13.4.1 The Association shall have the power to: ................................................ 29 13.4.2 Power to Adopt Rules.............................................................................31 13.4.3 Notice......................................................................................................32 13.5 Financial Statements and Records................................................................32 13.6 Inspection of Community Documents, Books, and Records ..........................32 13.7 Right to Enforce Governing Documents........................................................33 13.8 Decision to Take Enforcement Action............................................................33 ARTICLE 14: DECLARANT CONTROL PERIOD......................................................34 14.1 Declarant Control Until Transition Date.........................................................34 14.2 Transition Date..............................................................................................34 Bethany Corner Declaration Page 4 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-5 of 67 Record Date:9/15/2021 11:35 AM King County, WA 14.3 Declarant's Transfer of Association Control...................................................34 14.4 Audit of Records Upon Transfer....................................................................34 14.5 Termination of Contracts and Leases Made by Declarant .............................34 ARTICLE 15: THE BOARD........................................................................................35 15.1 Selection of the Board and Officers...............................................................35 15.2 Powers of the Board......................................................................................35 15.3 Managing Agent............................................................................................35 15.4 Limitations on Board Authority.......................................................................35 15.5 Removal of Board Members, Officers............................................................35 ARTICLE 16: BUDGET AND ASSESSMENTS.........................................................36 16.1 Fiscal Year....................................................................................................36 16.2 Preparation of Budget....................................................................................36 16.3 Ratification of Budget....................................................................................36 16.4 Supplemental Budget....................................................................................36 16.5 Monthly Assessments....................................................................................36 16.6 Common Expenses.......................................................................................37 16.7 Contribution to Initial Working Capital............................................................37 16.8 Special Assessments....................................................................................37 16.9 Specially Allocated Expenses........................................................................37 16.10 Owner Liability for Misconduct, Deductible Amounts.....................................37 16.10.1 Gross Negligence, Willful Misconduct.....................................................37 16.10.2 Negligence..............................................................................................38 16.10.3 Damage to a Unit....................................................................................38 16.11 Creation of Reserves, Assessments..............................................................38 16.11.1 Reserve Study........................................................................................38 16.11.2 Reserves and Reserve Accounts............................................................38 16.11.3 Withdrawals............................................................................................38 16.12 Notice of Assessments..................................................................................39 16.13 Payment of Monthly Assessments.................................................................39 16.14 Reconciliation of Assessments to Actual Expenses......................................39 16.15 Proceeds Belong to Association....................................................................39 Bethany Corner Declaration Page 5 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-6 of 67 Record Date:9/15/2021 11:35 AM King County, WA 16.16 Failure to Assess...........................................................................................39 16.17 Certificate of Unpaid Assessments................................................................40 16.18 Recalculation of Assessments.......................................................................40 ARTICLE 17: LIEN AND COLLECTION OF ASSESSMENTS..................................40 17.1 Assessments Are a Lien; Priority...................................................................40 17.2 Lien May Be Foreclosed; Judicial Foreclosure..............................................41 17.3 Nonjudicial Foreclosure.................................................................................41 17.4 Receiver During Foreclosure.........................................................................41 17.5 Assessments Are Personal Obligation..........................................................42 17.6 Extinguishment of Lien and Personal Liability...............................................42 17.7 Joint and Several Liability..............................................................................42 17.8 Late Charges and Interest on Delinquent Assessments................................42 17.9 Recovery of Attorneys' Fees and Costs........................................................42 17.10 Security Deposit............................................................................................42 17.11 Remedies Cumulative...................................................................................43 17.12 Delinquent Assessments — Rented.or Leased Units.....................................43 ARTICLE 18: ENFORCEMENT OF DECLARATION, BYLAWS, AND RULES AND REGULATIONS 43 18.1 Compliance with the Governing Documents..................................................43 18.2 Rights of Action.............................................................................................43 18.3 Failure of Board to Insist on Strict Performance No Waiver ..........................44 18.4 Board Enforcement........................................................................................44 18.5 Opportunity to Be Heard................................................................................44 18.6 Challenge to Board's Decision......................................................................45 18.7 Dispute Resolution........................................................................................45 18.7.1 Policy...................................................................................................:..45 18.7.2 Disputes Between Owners......................................................................45 18.7.3 Initial Dispute Resolution Procedure.......................................................45 18.7.4 Mediation................................................................................................45 18.7.5 Arbitration...............................................................................................46 18.7.6 Emergency Enforcement Action Exception.............................................46 Bethany Corner Declaration Page 6 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-7 of 67 Record Date:9/15/2021 11:35 AM King County, WA 18.7.7 Hearing — Law — Appeal Limited.............................................................47 18.8 Attorney Fees and Costs...............................................................................47 18.9 Applicability to claims against Declarant........................................................47 18.10 Enforcement against tenants.........................................................................47 ARTICLE 19: TORT AND CONTRACT LIABILITY....................................................48 19.1 Declarant Liability..........................................................................................48 19.2 Limitation of Liability for Utility Failure, Etc....................................................48 19.3 No Personal Liability......................................................................................49 ARTICLE 20: INDEMNIFICATION.............................................................................49 ARTICLE 21: INSURANCE.......................................................................................40 21.1 Association Insurance...................................................................................49 21.2 Additional Insurance......................................................................................49 21.3 Unavailability of Insurance.............................................................................50 21.4 Insurance Proscribed.....................................................................................50 21.5 Loss Adjustment through Association............................................................50 21.6 Certificate of Insurance..................................................................................50 21.7 Policy Requirements......................................................................................50 21.8 Unit Owner Insurance....................................................................................51 21.7.1 Owner's Additional Insurance.................................................................51 21.7.2 Proof of Coverage........................................................:..........................51 21.7.3 Unit Owner Obligations...........................................................................51 21.7.4 Tenant or Occupant Insurance...............................................................51 21.7.5 Owner's or Occupant's Insurance Deductible.........................................51 21.7.6 Allocation of Costs, including for Property Damage................................51 ARTICLE 22: -DAMAGE AND REPAIR OF DAMAGE TO PROPERTY .....................52 22.1 Application.....................................................................................................52 22.2 Costs.............................................................................................................53 22.3 Failure to Restore Common Elements...........................................................53 ARTICLE 23: CONDEMNATION, EMINENT DOMAN...............................................53 ARTICLE24: EASEMENTS......................................................................................53 24.1 In General......................................................................................................53 Bethany Corner Declaration Page 7 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-8 of 67 Record Date:9/15/2021 11:35 AM King County, WA 24.2 Easements Reserved by Declarant............................................................... 53 24.4 Utility Easements Granted by Declarant........................................................53 24.5 Additional Easements on Survey Maps.........................................................54 ARTICLE 25: SUBDIVIDING, COMBINING OR ALTERING UNITS ..........................54 25.1 Subdivision of Units.......................................................................................54 25.2 Legal Combination of Units....... ................. 25.3 Relocation of Boundaries -Adjoining Units.....................................................54 25.4 Fees and Costs; Amendments......................................................................54 ARTICLE 26: AMENDMENT OF DECLARATION, SURVEY MAP, ETC...................55 26.1 Procedures....................................................................................................55 26.2 Percentages of Consent Required................................................................56 26.3 Limitations on Amendments..........................................................................57 26.4 Preparation and Recordation.........................................................................57 26.5 Amendments Requiring 90% Owner Approval...............................................57 26.6 Amendment by Declarant.............................................................................. 57 26.6.1 Corrections.............................................................................................57 26.6.2 Exercise of Special Declarant Rights ........................................ .............. 58 26.7 Amendments by Association.........................................................................58 26.8 Amendments to Conform to Secondary Mortgage Market .............................58 26.9 Time for Challenges to Amendments............................................................59 ARTICLE 27: TERMINATION OF COMMUNITY.............................6.........................59 27.1 Action Required.............................................................................................59 27.2 The Act Governs............................................................................................59 ARTICLE28: NOTICES.............................................................................................59 28.1 Form and Delivery of Notice..........................................................................59 28.2 Tangible Medium...........................................................................................59 28.3 Electronic Transmission................................................................................59 28.4 When Effective..............................................................................................60 28.5 Good Faith.....................................................................................................61 28.6 Act Prevails...................................................................................................61 28.7 Notices to Eligible Mortgagees......................................................................61 Bethany Corner Declaration Page 8 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-9 of 67 Record Date:9/15/2021 11:35 AM King County, WA ARTICLE 29: MORTGAGEE PROTECTIONS..........................................................61 29.1 Rights of Mortgagees to Receive Certain Notices.........................................61 29.2 First Mortgagee's Rights Confirmed..............................................................61 29.3 . Limitation of Ability to Sell/Right of First Refusal...........................................62 29.4 Actions Requiring Mortgagee Consent..........................................................62 29.5 Deemed Consent by Mortgagee....................................................................62 29.6 Other Rights of Mortgagees..........................................................................62 29.7 Limitation.......................................................................................................62 ARTICLE 30: SEVERABILITY...................................................................................62 ARTICLE 31: INTERPRETATIONS; CONSTRUCTION; VALIDITY ..........................62 31.1 Liberal Construction; Consistent with Act......................................................62 31.2 Percentage of Owners or Mortgagees...........................................................63 31.3 Captions........................................................................................................63 31.4 Miscellaneous................................................................................................63 ARTICLE 32: INFLATIONARY INCREASE IN DOLLAR LIMITS...............................63 ARTICLE 33: EFFECTIVE DATE..............................................................................63 ARTICLE 34: REFERENCE TO SURVEY MAP........................................................64 ARTICLE 35: ASSIGNMENT BY DECLARANT........................................................64 EXHIBIT A — Legal Description......................................................................................65 EXHIBIT B —Allocated Interests, etc.............................................................................66 Bethany Corner Declaration Page 9 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-10 of 67 Record Date:9/15/2021 11:35 AM King County, WA ARTICLE 1: DEFINITIONS 1.1 Words Defined. For the purposes of this Declaration and any amendments hereto, the following definitions shall apply. "The Act" means Chapter 64.90 RCW entitled "Washington Uniform Common Interest Ownership Act." "Allocated Interests" means the allocation of the undivided interest in the Common Elements, the common expense liability, and votes in the Association for each of the Units in the Community determined in accordance withthe formulas set forth in Section 6.5 and as listed in Exhibit B. "Articles" means the articles of incorporation for the Association. "Assessments" means all sums chargeable by the Association against a Unit, including, without limitation, (a) general and special Assessments for Common Expenses, (b) specially allocated expenses, (c) charges and fines imposed by the Association; (d) interest and late charges on any delinquent account, and (e) costs of collection, including reasonable attorneys' fees, incurred by the Association in connection with the collection of a delinquent Owner's account. "Association" means the Owners Association identified in Article 13. "Ballot" means a record designed to cast or register a vote or consent in a form provided or accepted by the Association. "Board" and "Board of Directors" means the board of directors of the Association, as described in Article 15. "Bylaws" means the bylaws of the Association as they may from time to time be amended. "Common Elements" means all portions of the Community other than Units. "Common Expenses" means any expense of the Association, including allocations to reserves, allocated to all of the Unit Owners in accordance with common expense liability. "Common Expense Liability" means the liability for Common Expenses allocated to each Unit, as set forth in Exhibit B, which is equal for all Units. "Community" or "Common Interest Community" means real estate described in the Declaration with respect to which a person, by virtue of the person's Ownership of a unit, is obligated to pay for a share of real estate taxes, insurance premiums, maintenance, or improvement of, or services or other expenses related to, Common Elements, other units, or other real estate described in the Declaration. It means the Plat of Bethany Corner, created under the Declaration and its Owners. Bethany Corner Declaration Page 10 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-11 of 67 Record Date:9/15/2021 11:35 AM King County, WA "Conveyance" or "Convey" means any transfer of the Ownership of a Unit, including a transfer by deed or by real estate contract, but does not include the creation, transfer, or release of a security interest. "Declarant" means BONA FIDE PROPERTIES 2, LLC, a Washington Limited Liability Company, and its successors and assigns. "Declarant Control" means the right of the Declarant or persons designated by the Declarant to appoint and remove officers and members of the Board pursuant to Article 14. "Declaration" means this Declaration of Covenants, Conditions, Restrictions, and Easements for Bethany Corner, as it may from time to time be amended. "Development Rights" means the rights of the Declarant as specified in Article 11 below. "Electronic Transmission" or "Electronically Transmitted" means any electronic communication (a) not directly involving the physical transfer of a record in a tangible medium and (b) that may be retained, retrieved, and reviewed by the sender and the recipient of the communication, and that may be directly reproduced in a tangible medium by a sender and recipient. "Eligible Mortgagee" means the holder of a security interest on a unit that has filed with the secretary of the Association a written request that it be given copies of notices of any action by the Association that requires the consent of mortgagees.. "FHLMC" means the Federal Home Loan Mortgage Corporation. "FNMA" means the Federal National Mortgage Association. "Foreclosure" means a statutory forfeiture or a judicial or nonjudicial foreclosure of a security interest or a deed or other conveyance in lieu of a security interest. "Governing Documents" means the organizational documents, map, declaration, rules, or other written instrument by which the Association has the authority to exercise any of the powers provided for in the Act or to manage, maintain, or otherwise affect the property under its jurisdiction. "Identifying Number" means the number on the Survey Map and as listed in Exhibit B, which identifies each Unit in the Community. "Lot" means a Unit. "Managing Agent" means the person designated by the Board under Section 15.3. "Mortgage" means a mortgage, deed of trust, or real estate contract. "Mortgagee" means any holder, insurer, or guarantor of a Mortgage on a Unit. Bethany Corner Declaration Page 11 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-12 of 67 Record Date:9/15/2021 11:35 AM King County, WA "Notice and Opportunity to Be Heard" means the procedure described in Section 18.5. "Organizational Documents" means the instruments filed with the secretary of state to create an entity and the instruments governing the internal affairs of the entity including, but not limited to, any articles of incorporation, certificate of formation, and bylaws. "Owner" or "Unit Owner" means the Declarant or other person who owns a Unit, but does not include any person who has an interest in a Unit solely as security for an obligation. "Owner Installations" means any Tangible Property or improvements within a Unit not made by Declarant. "Person" means an individual, corporation, business trust, estate, the trustee or beneficiary of a trust that is not a business trust, partnership, limited liability company, Association, joint venture, public corporation, government, or governmental subdivision, agency, or instrumentality, or any other legal entity. "Record" when used as a noun, means information inscribed on a tangible medium or contained in an electronic transmission. "Related Party" means a person who has. been certified in a written document filed by a Unit Owner with the Association to be (a) the Owner's spouse, domestic partner, parent, parent -in-law, sibling, sibling -in-law, step parent, step sibling, parent's sibling, or lineal descendant or ancestor of any of the foregoing persons; (b) an officer or director of any Unit Owner that is a corporation; (c) a member of any Unit Owner that is a limited liability company; (d) the trustee or beneficiary of any Unit Owner that is a trust; or (e) a partner of any Unit Owner that is a partnership. "Residential Purposes" means use for dwelling or recreational purposes, or both, but does not include use for short term lodging, such as through services like Airbnb and VRBO. "Rule" means a policy, guideline, restriction, procedure, or regulation of an Association, however denominated, that is not set forth in the Declaration or organizational documents and governs the conduct of persons or the use or appearance of property. "Specially Allocated Expense" means any expense of the Association, including allocations to reserves, allocated to some or all of the Unit Owners pursuant to RCW 64.90.480 (4) through (8). "Special Declarant Rights" means rights reserved for the benefit of the Declarant as specified in Section 11.2 below. "Survey Map" means the Survey Map filed simultaneously with the recording of this Declaration and any amendments, corrections, and addenda thereto subsequently filed. Bethany Corner Declaration Page 12 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-13 of 67 Record Date:9/15/2021 11:35 AM King County, WA "Tangible Medium" means a writing, copy of a writing, facsimile, or a physical reproduction, each on paper or on other tangible material. "Transition Date" means the date upon which the period of Declarant Control terminates as determined in Article 14. "Unit" means a physical portion of the Community designated for separate Ownership, the boundaries of which are described in Section 6.2 and shown on the Survey Map. Synonymous with "Lot." "Writing" does not include an electronic transmission. (But an electronic Transmission that is a Record can become a writing if it is printed.) "Written" means embodied in a tangible medium. 1.2 Form of Words. The singular form of words shall include the plural and the plural shall include the singular. Masculine, feminine, and gender -neutral pronouns shall be used interchangeably. 1.3 Statutory Definitions. Some of the terms defined above are also defined in the Act. The definitions in the Declaration are not intended to limit or contradict the definitions in the Act. If there is any inconsistency or conflict, the definition in the Act will prevail. ARTICLE 2: CREATION OF COMMUNITY 2.1 Submission of Property to Act. Declarant, being the sole Owner of the Property, makes this Declaration for the purpose of submitting the Property to the plat Community form of use and Ownership and to the provisions of the Washington Uniform Common Interest Ownership Act, RCW Ch. 64.90, as it may be amended from time to time (the "Act"). Declarant hereby declares that the Property is and shall be held, used, conveyed, encumbered, leased, occupied, rented and improved subject to the covenants, agreed to be in furtherance of the division of the Property into individual Units, and Common Elements, and shall be deemed to run with the land and be a burden and benefit to Declarant, its successors, and assigns, and all persons who hereafter own or acquire an interest in the Property or any part thereof, and their grantees, lessees, successors (by merger, consolidation or otherwise), heirs, executors, administrators, and assigns. 2.2 Conflict Provisions. The Declaration and the Act provide the framework by which the Community is created and operated. In the event of a conflict between the provisions of the Declaration and the Act, the Act shall prevail. In the event of a conflict between the provisions of this Declaration and the Bylaws, the Declaration shall prevail except to the extent the Declaration is inconsistent with the Act. The creation of the Community shall not be impaired, and title to a Unit and its interest in the Common Elements shall not be rendered unmarketable or otherwise affected by reason of an insignificant failure of this Declaration, the Survey Map, or any amendment thereto to . comply with the Act. Bethany Corner Declaration Page 13 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-14 of 67 Record Date:9/15/2021 11:35 AM King County, WA ARTICLE 3: NAME OF COMMUNITY The name of the Community created by this Declaration and the Survey Map is BETHANY CORNER. ARTICLE 4: DESCRIPTION OF REAL PROPERTY The real property initially included in the Community and submitted to the Act is described in Exhibit A. ARTICLE 5: DESCRIPTION OF COMMON ELEMENTS 5.1 Storm Drainage Area. Tract A is a private storm drainage area. It is located as shown on the Survey Map. The Association shall be responsible for all maintenance and management obligations Association with said tract. The Association shall obtain any required permits from the City of Renton, or its successor or assigned, prior to activities disturbing the tract, such as clearing and grading, filling, piping, cutting or removing vegetation (except for routine landscape maintenance such as lawn mowing within the two-year maintenance period. The tract contains public storm drainage facilities, for which the City of Renton holds an easement to maintain said facilities. 5.2 Sensitive Area. Tract B is a sensitive area tract. It is located as shown on the Survey Map. The Association shall be responsible for the maintenance, protection, repair, and replacement of the tract and any improvements contained therein. Development, alteration, or disturbance within the tract is prohibited except for purposes of habitat enhancement as part of an enhancement project which has received prior written approval from the City of Renton. Members shall not access Tract B except as required to maintain, protect, repair and replace the tract. Tract B is a Native Growth Protection Tract, as determined by the City of Renton. Tract B may not be developed, altered or disturbed except for purposes of habitat enhancement as part of an enhancement project which has received prior written approval from the City of Renton, and from any other agency with jurisdiction over such activity. Tract B may not be sold, and each Unit within the Association shall have an undivided interest in the tract. This section of the Declaration may not be amended or deleted absent approval of the City of Renton. 5.3 Sidewalk and Landscape Strip. A sidewalk abuts the Community for which the Association is responsible for keeping clean and clear of vegetation, except for the trees which belong to the City of Renton. The Association is responsible for watering and otherwise caring for said trees. 5.4 Street Lighting. The street lighting along the city street that serves the Community. Bethany Corner Declaration Page 14 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-15 of 67 Record Date:9/15/2021 11:35 AM King County, WA 5.5 Storm Drainage. The storm water drainage pipes serving each Unit, within the common Easement area. 5.6 Irrigation. The irrigation system that waters the trees owned by the City of Renton, or any other portion of the Common Elements. 5.7 Other. All portions of the Community outside the boundaries of Units as described in Section 6.2. ARTICLE 6: DESCRIPTION OF UNITS; ALLOCATED INTERESTS 6.1 Number and Identification of Units. The Community has 9 Units. The Identifying Number of each Unit is set forth in Exhibit B. The locations and boundaries of the Units are shown on the Survey Map. 6.2 Unit Data. Exhibit B sets forth the following data for each Unit. 6.4.1 The approximate square footage; the house number; the street number; the street name; and the Allocated Interest. The location of each Unit is shown in the Survey Map. 6.3 Allocated Interest. The (i) vote in the Association of each Unit and, (ii) subject to any Special Allocations and special Assessments to Individual Owners or Units provided for in this Declaration, the Allocated Interest of each Unit in Common Elements and the Common Expense Liability, are calculated as an equal share for each Unit. Each Unit's Allocated Interest and vote in the Association is set forth in Exhibit B. The Allocated Interests appertaining to each Unit cannot be changed except as provided in this Declaration. The allocated Interests and the title to the respective Units shall not be separated or separately conveyed and each undivided interest in Common Elements shall be deemed to be conveyed with its respective Unit even though the description in the instrument of conveyance or encumbrance may refer only to the title to the Unit. ARTICLE 7: USE OF COMMON ELEMENTS 7.1 Description. Common Elements are described in Article 5. 7.2 Use. Except -for Tract B, each Owner shall have the right to use the Common Elements in common with all other Owners and a right of access from the Owner's Unit across the Common Elements to the public streets. The right to use the Common Elements extends not only to each Owner, but also to his agents, servants, tenants, family members, invitees, and licensees. The right to use the Common Elements shall be governed by the provisions of the Act, this Declaration, the Bylaws, and the rules and regulations of the Association. See Section 5.2 regarding use of, and access to, Tract B. 7.3 Conveyance or Encumbrance of Common Elements. Portions of the Common Elements not necessary for the habitability of a Unit may be conveyed or subjected to a security interest by the Association if approved by the Owners having at least 80% of the votes in the Association, including 80% of the votes excluding votes Bethany Corner Declaration Page 15 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-16 of 67 Record Date:9/15/2021 11:35 AM King County, WA held by the Declarant or an affiliate of Declarant (as defined in the Act) and the consent of Eligible Mortgagees of Units to which are allocated at least 51 % of the votes of Units subject to Mortgages held by Eligible Mortgagees. Any conveyance, encumbrance, judicial sale, or other transfer (voluntary or involuntary) of an individual interest in the Common Elements shall be void unless the Unit to which that interest is allocated is also transferred. Any conveyance of a Common Element, or agreement to subject a Common Element to a security interest, is subject to the requirements of RCW 64.90.465. ARTICLE 8: ACCESSORY DWELLING UNITS (ADU) 9.1 Use of ADU. Each Unit has an accessory dwelling unit. These may be rented long term, or may be used for any commercial purpose allowed by the City. No short term rentals of the ADU shall be allowed, including through Airbnb, VRBO, or other services. No rental term shall be shorter than 30 days. If rented, the entire ADU shall be rented to a single family. ARTICLE 9: PARKING AND STORAGE 9.1 Garage and Storage in Units. Each Unit has parking available upon its driveway, and within its garage. One additional parking space is available for the Unit's Accessory Dwelling Unit. Units 6 and 7 share an access driveway and share parking availability in said driveway. Under no circumstances may garages be converted to additional living space within a Unit. 9.2 Use of Parking Spaces and Driveways. Parking spaces and driveways within the Community are to be used for the parking of operable passenger motor vehicles and may not be used for parking, trailers, or recreational vehicles, boats, campers, or for permanent or temporary storage of equipment, goods, materials or other personal property, including moving pods and construction materials, or for other purposes except to the extent expressly allowed by rules and regulations adopted by the Board. A driveway may be used for parking one commercial vehicle, provided it has no more than two -axles, and does not extend into the public right-of-way or sidewalk while parked. The Board may direct that any vehicle or other thing improperly parked or kept in a parking space be removed, and if it is not removed the Board may cause it to be removed at the risk and cost of the Owner thereof. Repairs of vehicles in a Common Element is not permitted. ARTICLE 10: PERMITTED USES, MAINTENANCE OF UNITS; CONVEYANCES 10.1 Use; Timesharing Prohibited. Except as otherwise provided in Section 10.2 below, the Units are intended for and restricted to single family residential use only on an Ownership, rental, or lease basis, and for social, recreational, or other reasonable activities normally incident to such use, which may include use as a home office. Timesharing of Units, as defined in RCW Ch. 64.36, is prohibited. 10.2 Commercial Uses. Units within the Community may be used for commercial purposes by the Owners of such Unit, except short term rentals (less than Bethany Corner Declaration Page 16 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-17 of 67 Record Date:9/15/2021 11:35 AM King County, WA 30 days). Any such commercial use is to the extent permissible under applicable City of Renton ordinances and subject to the following: 10.2.1 Such commercial uses must have a low impact on other Unit. Owners as determined by the Board in the exercise of its reasonable discretion. Customers or clients of any business operating from such a Unit must use the exterior entry of the Unit exclusively; provided, however, that any such customers or clients who are persons with disabilities or who are otherwise incapable of accessing such Units due to physical limitations and/or the layout of the stairways and entrances to such Units may access such Units through the common area corridors adjacent to such Units. 10.2.2 A sign may be placed on the exterior of the home, or the exterior of the ADU, which shall be no larger than 18 inches by 24 inches, and shall be subject to the Signage Policy or rules adopted by the Board. No business signage is allowed in the yard or at the street. 10.2.3 No such Unit shall be used for conducting: manufacturing activities; wholesale or retail sales of pornographic literature, photographs or movies; as a card room, video arcade, dance hall, pool hall or other similar form of amusement center; adult motion picture theater; laundry; dry-cleaning, dyeing or rug cleaning plant; jail; hotel, apartment hotel and motel; marijuana shop; smoke shop; package liquor store; taxidermy shop; retail pet shop or small animal clinic; work release center, drug rehabilitation center or social service agency. No business of any kind shall operate before 8:00 am or after 9:00 pm except with written permission from the Board. 10.2.4 The delivery or shipment of merchandise, supplies, and fixtures to or from any such Unit shall be accomplished in a manner that shall not unreasonably interfere with the quiet enjoyment or the security of the other Units. 10.2.5 The Owner of any such Unit shall not allow or permit any continuing vibration or any offensive or obnoxious and continuing noise or any offensive or obnoxious and continuing odor to emanate from the Unit into any other Unit, nor shall the Owner allow or permit any machine or other installation therein to constitute a nuisance or otherwise to unreasonably interfere with the safety or comfort of any of the Owners of other Units. 10.2.6 The Owner of any such Unit shall not use or occupy the Unit or do or permit anything to be done thereon in any manner which shall make it impossible for the Association to carry any required insurance, or which will invalidate or unreasonably increase the cost thereof or which would constitute a public or private nuisance or which will violate any laws, regulations, ordinances or requirements of the federal, state or local governments or of any other governmental authorities having jurisdictions over the property. 10.2.7 The Owner of any such Unit shall bear the expenses relating to any changes in utility services necessitated by the use of the Unit. Bethany Corner Declaration Page 17 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-18 of 67 Record Date:9/15/2021 11:35 AM King County, WA So long as the Owner of any such Unit complies with the provisions of this Declaration and of applicable law, such Owner's right to conduct business in, and to quiet enjoyment of, such Unit shall not be denied or unreasonably conditioned. 10.3 Leasing. No lease or rental of a Unit may be less than an entire domicile located within a Unit. All leases or rental agreements for the Units shall provide that its terms shall be subject in all respects to the provisions of this Declaration and the Bylaws and rules and regulations of the Association and that any failure by the tenant to comply with the terms of such documents, rules, and regulations shall be a default under the lease or rental agreement. If any lease under this Section does not contain the foregoing provisions, such provisions shall nevertheless be deemed to be part of the lease and binding upon the Owner and the tenant by reason of their being stated in this Declaration. All leases and rental agreements shall be in writing. Copies of all leases and rental agreements shall be delivered to the Association within 10 days of a request by the Association. 10.3.1 Association Rights against Tenants. If a tenant, guest or invitee of an Owner or Related Party violates any provision of this Declaration or other Governing Document, in addition to exercising any of its powers against the Owner, the Association may: (i) after Notice and Opportunity to be Heard is given to the tenant, exercise directly against the tenant its right to enforce the Governing Documents and impose and collect reasonable fines for such violations in accordance with a schedule of fines adopted by the Board and furnished to Owners; (ii) after giving the tenant and the Owner Notice and Opportunity to be Heard, levy reasonable fines against the tenant and Owner for the violation. In addition to the foregoing, where a tenant violates a Governing Document and the tenant or Owner fails to cure the violation within 10 days after the Association notifies the Tenant and Owner of the violation, the Association may enforce any other rights against the tenant for the violation that the Owner as the landlord could lawfully have exercised under the lease or that the Association could lawfully have exercised directly against the Owner, or both, including without limitation, the authority, on behalf and at the expense of the Owner, to terminate the lease and/or evict the tenant. The Association and the board shall have no liability to an Owner or tenant for any eviction made in good faith. The Association shall have a lien against the Owner's Unit for any costs incurred by it in connection with such eviction, including reasonable attorneys' fees, which may be collected and foreclosed by the Association in the same manner as Assessments are collected and foreclosed under Section 8. Unless a lease otherwise provides, this Section 10 does not affect rights that the Owner has to enforce the lease or that the Association has under law, or permit the Association to enforce a lease to which it is not a party in the absence of a violation of the Governing Documents. 10.3.2 Documents to Tenants. Owners are required to furnish a tenant with a copy of the current Declaration and Rules and to furnish the Board with the tenants signed acknowledgement of receipt of said Documents within 10 days of a request by the Board Bethany Corner Declaration - Page 18 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-19 of 67 Record Date:9/15/2021 11:35 AM King County, WA 10.3.3 Leasing Restrictions. The Association may adopt Rules that restrict the leasing of a Unit to the extent those Rules are reasonably designed to meet underwriting requirements of Institutional Lenders that regularly make loans secured by First Mortgages on Units in comparable Common interest communities or of a Secondary Market Participant. Notwithstanding anything to the contrary in this Section 10.3.3, no provision in this Section 10.3.3 shall be effective to the extent it violates any requirement of a Secondary Market Participant. 10.4 Maintenance of Units, and Common Elements. Except as provided below, the Association is responsible for maintenance, repair, improvement, and replacement of the Common Elements and each Owner is responsible for maintenance, repair and replacement of the Owner's Unit. The Association may maintain landscaping in the front yards of each Unit to a uniform standard. The Association may vote each year whether to include the front yard landscape in the Association budget. If the Association chooses to maintain front yards, individual Owners may not "opt out" to avoid payment of that share of the budget. Owners are responsible for watering front yards. The Association shall maintain only the landscaping installed by the Declarant. Each Owner shall, at Owner's sole expense, keep the Unit and its improvements in a neat, clean and sanitary condition, reasonably free of rodents and pests, and in good order, condition, and repair and shall do all redecorating and painting at any time necessary to maintain the good appearance and condition of the Unit. Regardless of whether the Association or the Owners perform such work, the Owner is responsible for all costs related to such maintenance, repair and replacement. The Board may establish standards for such work. Without limiting the foregoing, the Owner's obligations under this Section 10.4 include the obligation to inspect, repair and replace fencing within or bordering part, or all, of a Unit's perimeter. If a fence separates two Units, it is the joint responsibility of the two Unit Owners. The Association shall also have those obligations not enumerated above in this Section 10.4 which are imposed on the Association pursuant to any other provision of this Declaration, the Survey Map, the Act or any other law, the City of Renton or other governmental authority. Decisions with respect to the standard of appearance and condition of Common Elements, and with respect to the necessity for, and manner of, caring for, maintaining, repairing, replacing, or repainting or re -staining, Common Elements, shall be made by the Board and all such decisions by the Board shall be final. The Association's expenses for improving, maintaining, repairing, inspecting, and replacing Common .Elements and any other Improvements, rights of way, or areas it is required to improve, maintain, repair, inspect, or replace under this Declaration, and for performing its other rights or obligations under this Declaration or other Governing Document, or any other instrument or agreement, or the Act, are Common Expenses. Bethany Corner Declaration Page 19 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-20 of 67 Record Date:9/15/2021 11:35 AM King County, WA Certain Common Expenses are Specially Allocated to Units as provided in Section 10.4.1. 10.4.1 Unit Owner Responsibility. Except for damage which is covered by insurance required to be carried by the Association under Article 21 (and which is required to be repaired by the Association under Section 10.4, each Owner, at such Owner's expense, shall have the right and duty to maintain in a good, lawful, and functional condition at all times, and shall repair and replace, as appropriate or necessary: (i) such Owner's Unit and Unit Improvements,'equipment, fixtures, appliances, and other "betterments," in such Owner's Unit, (ii) all Utility Service Facilities (pipes, wires and conduits) located within such Owner's Unit or which serve only such Owner's Unit, wherever located, from and including the point of connection, regardless of whether located within or outside of the boundaries of such Owner's Unit, and (iii) all Owner Installations, whether within or outside of the Unit. 10.4.2 Refuse — General. Each Unit shall be kept free of accumulations of waste, litter, junk, containers, equipment, building materials and other debris. Unit Owners shall place all trash, refuse, and recycling materials in the Unit's trash bins. Additional rules and regulations may be adopted by the Board to govern the storage of refuse, garbage, or other waste, and containers for such. 10.4.3 Inspection. The Association may, as a Common Expense, provide for the inspection of any portion of a Unit, the failure of which to maintain properly may cause damage to the Common Elements, or another Unit or cause unnecessary Common Expenses. The Association shall provide,at least three days' notice to the occupant of the Unit and shall specify in the notice what items are to be inspected and a time for the inspection. If the inspection discloses the need for repair or replacement, the Association may either require the responsible Owner to make the repair or replacement or to make the repair or replacement itself and allocate the cost thereof to Owner. The Association shall maintain complete records of all inspections, maintenance, repairs and replacements done by it or its agents or contractors with respect to the Common Elements or Units. 10.5 Architectural Control Committee. The Board of Directors may appoint an Architectural Control Committee of two (2) or more Members of the Association. The Committee shall act for the Board of Directors to the extent set forth in this Declaration. The ACC shall have as members at least two board members. The Board may at any time dissolve the ACC and exercise any of its authority and powers. Decisions of the ACC may be appealed to the full Board, whose decisions shall be final. 10.5.1 Jurisdiction and Purpose. The Committee shall have the right to review and thereby either approve or reject all plans and specifications for any building or structure to be constructed or modified within the Properties which do not conform to the Architectural Guidelines. Enforcement of these covenants shall be carried out by the Association. Bethany Corner Declaration Page 20 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-21 of 67 Record Date:9/15/2021 11:35 AM King County, WA 10.5.1.1 No building of any kind shall be erected, placed or altered on any Unit until the building plans, specifications, plot plan and landscape plans are submitted by the Owner or his representative to the Architectural Control Committee and found by said Committee to be in accordance with the guidelines and the procedures established by the Committee. It shall be the obligation of each Owner to familiarize themself with the rules, regulations and procedures of the Committee. All costs incurred by the Committee for inspections, plan review and consultants shall be paid for by the applicant. 10.5.2 Approval Procedures. 10.5.2.1 Any approval requested of the Committee shall be requested in writing and shall be submitted to the Association headquarters unless the Committee shall record an instrument establishing a different place to submit such plans. The ACC may adopt rules and procedures for applications, and to require approval for any exterior components of any structure on any Property, and may proscribe colors and materials that may be used within the Community. ACC approval is required for any change in the yards or the exterior appearance, including (not limited to) play structures, tree houses, sheds, out buildings, hot tubs, retaining walls, decks, patios, rain barrels, sport courts, swimming pools, ponds, etc. 10.5.2.2 In the event an Owner enters into construction, addition, alteration or change of any Building on a Building Site on the Properties without having first submitted in writing the proposed plans and specifications to the Committee for such work and completes such work without written approval by the Committee, the Association has the right, at any time, to force compliance by change or removal of such work, at the Owner's expense. 10.5.2.3 The Committee, in the discharge of its obligations hereunder and in its deliberations, shall act objectively and fairly in making decisions concerning various plans, specifications, plot plans and landscape plans submitted to it by various Owners for consideration. Further, the determinations of the Architectural Control Committee, as to non-compliance, shall be in writing signed by the Committee and shall set forth in reasonable details the reason of non-compliance. 10.5.3 Compliance with Architectural Requirements and Rules. Each Owner shall comply with the Covenants, and the ACC Rules adopted by the Board. All ACC Rules and Regulations, and all additions, deletions and all changes to all ACC Rules and Regulations, shall be distributed to the Property Owners. 10.5.4 Approval Prior to Work Start. No clearing, excavating or filling of any Property shall be commenced prior to ACC approval, no dwelling, garage, fence, screening, wall, shed, deck, porch, dock, solar collection device, out building or other structure shall be constructed, erected, or located on any Property, nor shall any exterior addition or alteration be made (other than replacement within same footprint or Bethany Corner Declaration Page 21 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-22 of 67 Record Date:9/15/2021 11:35 AM King County, WA maintenance to any structure on any Unit, nor shall any road or driveway be made or altered, until the construction plans and specifications and a plot plan showing the nature, kind, shape, height, materials, color and location of the same shall have been submitted to and approved by the ACC. 10.5.5 Submission of Plans and Application. Any Owner wishing to take any of the actions described in this section shall submit to the ACC two (2) sets of plans and specifications with a scale of 1" = 10' for plot plans and 1/4" = 1' for buildings showing the following: (1) The size and dimensions of the improvement or alteration; (2) The exterior design, color scheme, exact location on the Unit (See recommendations for colors in the book in Manager's office); (3) The location of driveways and parking areas; (4) The plan for drainage and grading; and (5) The proposed landscaping and outdoor lighting 10.5.6 Minimum Requirements for Dwellings. No dwelling shall be constructed or placed on any residential Unit unless it shall comply with the minimum Architectural Requirements recommended by the ACC and with the following: (1) The dwelling must be permanently anchored to a county approved concrete or masonry foundation (2) The roof and exterior siding of the dwelling shall be of wood, cement fiber - board, masonry, or other material approved by the ACC. (3) The eaves on all sides of the dwelling must have a depth of not less than 12 inches. (4) The dwellings must be declared to be part of the real property and taxed accordingly. (5) Every dwelling shall have a minimum of 1,000 square feet of enclosed year- round living area. (6) All exterior construction and landscaping must be completed within one year following approval by the ACC and the issuance of the building permit. Unit Owners may apply for extensions for good cause shown. 10.5.7 Minimum Requirements for Outbuildings. No outbuilding (which includes sheds) shall be constructed or placed on any Unit unless it shall comply with the minimum Architectural Requirements adopted by the ACC: (1) No more than one outbuilding building per Unit (2) Not to exceed a total of 120 square feet (3) Color of outbuildings should match or complement the main dwelling (4) Roof must match main dwelling Bethany Corner Declaration Page 22 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-23 of 67 Record Date:9/15/2021 11:35 AM King County, WA (5) Height of outbuilding not to exceed 10 ft. (6) Outbuildings must be in the backyard or side yard and meet set back requirements from back and sides as the City permits 10.5.8 Requirements for Fences, Screening, Walls, Decks and Porches. No fences, screening, walls, decks and porches shall be constructed or placed on any residential Unit unless it shall comply with the minimum ACC Rules adopted by the Board and with the following: (1) All fences, screening, walls (rockeries or retaining), decks and porches must follow City or County Code. (2) Fences, screening or walls from lot line to setback must be approved by the Architectural Committee or Trustees (3) Fences, screening and walls must be complementary to the neighborhood and not exceed 6 feet tall (4) Building or rebuilding attached or detached decks or porches must be approved by the ACC 10.5.9 Minimum Requirements for Landscaping. Landscaping and hardscaping must meet the minimum Architectural Requirements adopted by the Board and with the following: (1) Front yard must be grass, bark or ground cover. Exceptions for drought resistant landscaping will be made consistent with Washington Law. (2) Driveways and Parking Spaces must be concrete, asphalt or concrete pavers. (3) Bushes and shrubs should be conducive to natural vegetation or suitable for the Northwest. 10.5.10 ACC Rules and Regulations. The ACC may propose to the Board, and the Board may adopt, additional rules and regulations regarding the appearance, size and location of anything built within a Unit, and any landscaping in a Unit. Such rules and regulations shall be binding on every Unit as if set forth fully in this Declaration. 10.5.11 Alterations of Units. Subject to the provisions of the Declaration and other provisions of law, a Unit Owner: (1) May make any improvements or alterations to the Owner's Unit that do not affect the Common Elements, and are not visible from the roads, common areas, or other Units; Bethany Corner Declaration Page 23 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-24 of 67 Record Date:9/15/2021 11:35 AM King County, WA (2) May not change the appearance of the Common Elements or the exterior appearance of a Unit without written permission of the ACC; (3) May not, without first obtaining written consent of the ACC, make or permit to be made any structural alterations, improvements, or addition in or to their Unit, or in or to the exterior of the buildings or any other areas and facilities; (4) Shall obtain all permits required by the City for any modification to their Units. All work done must be as required by the Building Code; (6) May not paint or decorate any portion of the exterior of their homes or other structures on their Unit or the Common Elements without first obtaining written consent of the ACC; and 10.5.12 Interaction of the ACC and the Declarant. So long as the Declarant is exercising any Development Rights or other Declarant Rights, this Section 10.5 shall not apply to the Declarant. 10.6 Protected Antennas. An Owner may not install an antenna, dish or other receiving device in or on any portion of the Common Elements, except as provided in this Section. Each Owner shall have the right to install a Protected Antenna (as defined by the provisions of 47 C.F.R. § 1.4000 ("FCC Rule") as it now exists or is hereafter amended or replaced, or any other federal, state or local law, code, rule or regulation that pre-empts, prohibits or limits restrictions on, or conditions to, the installation, maintenance or repair of telecommunications equipment desired by an Owner) (but no other kind of antenna, dish or receiving device) within the Owner's Unit, subject to the conditions and limitations set forth in this Section. 10.6.1 Owner shall install the Protected Antenna entirely within its Unit, or at such location designated by the Board. The Protected Antenna may not extend into any Common Element or into any Unit owned by another Owner. The Protected Antenna shall not interfere with any Protected Antenna or other telecommunications equipment previously installed by another Unit Owner or the Association. 10.6.2 The Board may require the Protected Antenna to be painted so it blends in with its surroundings or located in a particular place or screened to minimize adverse aesthetic effects, provided that the cost of painting or screen is not unreasonably expensive in relationship to the cost of the Protected Antenna and the painting, location or screening does not interfere with reception. 10.7 Effect on Insurance. Nothing shall be done or kept in any Unit or in any Common Element that will increase the rate of insurance on the property without the prior written consent of the Board. Nothing shall be done or kept in any Unit or in any Common Element that will result in the cancellation of insurance on any part of the property, or that would be in violation of any laws. 10.8 Use or Alteration of Common Elements. Use of the Common Elements shall be subject to the provisions of this Declaration and the rules and regulations of the Bethany Corner Declaration Page 24 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-25 of 67 Record Date:9/15/2021 11:35 AM King County, WA Board. Nothing shall be altered or constructed in or removed from any Common Element without the prior written consent of the Board. 10.9 Signs. The Association may maintain the "Bethany Corner" sign, if any, as part of the Common Elements. The Association may not prohibit display of signs regarding candidates for public or Association office, or ballot issues, on or within a Unit, but the Association may adopt rules governing the time, place, size, number, and manner of those displays. The Association may not prohibit display of the flag of the United States, or the flag of Washington State, on or within a Unit. All other political signs and flags are permitted only as provided by rules and regulations adopted by the Board. Except as set forth in Section 10.2.2, no sign of any other kind shall be displayed to the public view on or from any Unit or Common Element without the prior consent of the Board. The Board may erect, in the Common Elements, a master directory listing Units that are for sale or lease or may regulate the size and location of signs advertising Units for sale or lease. This Section shall not apply to the Declarant who may post such signs on the property as it deems necessary or appropriate for the sale of Units in the Community as long as the Declarant has a Unit for sale. 10.10 Pets. Dogs, cats or birds (herein referred to as "pets") may be kept in Units subject to rules and regulations adopted by the Board, provided that Owners shall not keep more than (i) two dogs or (ii) two cats or (iii) one dog and one cat in a Unit. Pets are not allowed on any Common Elements unless they are on a leash under a person's control or in a carrier. The Board may, after Notice and Opportunity to be Heard, at any time require the removal of any pet which it finds is disturbing other Owners unreasonably, or is creating a health or safety risk and may exercise this authority for specific pets even though other pets are permitted to remain. Each Unit Owner shall be responsible for properly removing and disposing of its pet's excrement as well as for paying the cost to repair any damage caused by its pets, (iv) no pet may be kept, bred or used for any commercial purpose. 10.11 Quiet Enjoyment. No Owner shall permit anything to be done or kept in the Owner's Unit or Common Elements which would interfere with the right of quiet enjoyment of the other residents of the Community. 10.12 Offensive Activity. No noxious or offensive activity shall be carried on in any Unit or Common Element, nor shall anything be done therein that may be or become an annoyance or nuisance to other Owners. Owners shall not permit any condition to exist that will induce, breed, or harbor infectious plant diseases or noxious insects or vermin. 10.13 Conveyance by Owners, Notice Required. The right of an Owner to convey the Unit shall not be subject to any right of approval, disapproval, first refusal, or similar restriction by the Association or the Board, or anyone acting on their behalf. An Owner intending to convey a Unit shall deliver a written notice to the Board, at least two weeks before closing, specifying (a) the Unit being sold, (b) the name and address of the purchaser, of the closing agent, and of the title insurance company insuring the purchaser's interest, and (c) the estimated closing date. The Board shall have the right Bethany Corner Declaration Page 25 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-26 of 67 Record Date:9/15/2021 11:35 AM King County, WA to notify the purchaser, the title insurance company, and the closing agent of the amount of unpaid Assessments and charges outstanding against the Unit, whether or not such information is requested. Promptly upon the conveyance of a Unit, the new Unit Owner shall notify the Association of the date of the conveyance and the Unit Owner's name and address. The Association shall notify each insurance company that has issued- an insurance policy under Article 21 of the name and address of the new Owner and request that the new Owner be made a named insured under such policy. At the time of the first conveyance of each Unit, every Mortgage, lien, or other encumbrance affecting that Unit and any other Unit or Units or real property, other than the percentage of undivided interest of that Unit in the Common Elements, shall be paid and satisfied of record or the Unit being conveyed and its undivided interest in the Common Elements shall be released therefrom by partial release duly recorded or the purchaser of that Unit shall receive title insurance from a licensed title insurance company against such Mortgage, lien, or other encumbrance. 10.14 Solar Panels. Installation of a "solar energy panel", as defined in RCW 64.90.510, by an Owner is prohibited unless all aspects of the solar energy panel(s) conform to the requirements of RCW 64.90.510, to all provisions of this Declaration, to all applicable laws and codes, and to any Rules adopted by the Board consistent with the limitations on rulemaking set forth in RCW 64.90.510. Without limiting the foregoing, Owners of Commercial Units may not install solar energy panels outside the boundaries of their Unit, (i) Owners of Units may install solar energy panels only on the roof of the Building in which the installing Owner's Unit is located and only in the location approved by the Association; (ii) all solar energy panels must meet applicable health and safety standards and requirements imposed by state and local permitting authorities, (ii) if used to heat water, the solar energy panel must be certified by the solar rating certification corporation or another nationally recognized certification agency and certification must be for the solar energy panel and for installation, (iii) if used to produce electricity, the solar energy panel must meet all applicable safety and performance standards established by the national electric code, the institute of electrical and electronics engineers, accredited testing laboratories, such as underwriters laboratories, and, where applicable, rules of the utilities and transportation commission regarding safety and reliability. In addition to the foregoing, the following shall apply, to the extent applicable: (i) all solar energy panels must be mounted parallel to the Building roof plan, no more than six inches from the roof surface, (ii) attachment of a solar energy panel to the slope of a Unit roof facing a street is permitted only if (a) the solar energy panel conforms to the slope of the roof; and (b) the top edge of the solar energy panel is parallel to the roof ridge; and (c) the following requirements are met: (1) the solar energy panel frame, support brackets, or any visible piping or wiring must be painted to coordinate with the roofing material; and (2) all Owners or Occupants who install solar energy panels must indemnify or reimburse the Association and other Owners for loss or damage caused by the installation, maintenance, or use of the solar energy panel. The Association may adopt other reasonable Rules regarding solar energy panels to the extent permitted by RCW 64.90.510 which are not inconsistent with this Section 10.16 or any other provision of this Declaration or other Governing Documents. Any solar energy panel installed by an Owner is the personal property of such Owner and the Association shall Bethany Corner Declaration Page 26 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-27 of 67 Record Date:9/15/2021 11:35 AM King County, WA have no obligation to inspect, maintain, repair, replace any such solar energy panel. Installation, maintenance, repair, replacement and other work on a solar energy panel is subject to all of the requirements of Section 10.4. Owners are responsible for the removal and reinstallation of their solar panels if required for maintenance, repair or replacement of the Common Elements. 10.16 No Smoking Policy. Due to the irritation and known health risks of exposure to second-hand tobacco smoke, increased risk of fire and increased maintenance and cleaning costs, all forms of smoking are prohibited on Common Elements. No Smoking on public sidewalks or roads shall be allowed. The smoking prohibitions specified herein applies to all persons, including but not limited to Owners, tenants, invitees, business invitees, occupants and visitors. ARTICLE 11: DEVELOPMENT RIGHTS AND SPECIAL DECLARANT RIGHTS 11.1 Development Rights. Declarant reserves the Development Right to create up to a total of 9 Units within the Community. 11.2 Special Declarant Rights. Declarant reserves the following Special Declarant Rights so long as Declarant owns a Unit: (a) to complete any improvements shown on the Survey Maps and Plans, (b) to maintain sales offices, management offices, interior and exterior signs advertising the Community, and models in Units that are not occupied and are for sale by Declarant, in Units owned by Declarant, and in the Common Elements of the Community, (c) to conduct sales events and other activities relating to the marketing of Units in the Common Elements of the Community; (d) to use easements through the Common Elements for the purpose of making improvements within the Community, and (e) to elect, appoint, or remove any officer of the Association or any member of the Board during the period of Declarant Control as provided by Article 14. 11.3 Transfer. The rights described in this Article shall not be transferred except by instrument evidencing the transfer executed by Declarant or Declarant's successor and the transferee, and recorded in King County. The rights and liabilities of the parties involved in such a transfer, and of all persons who succeed to any Development Right or Special Declarant Right, are set out in RCW 64.90.425 11.4 Miscellaneous. Declarant shall have the right, as a Special Declarant Right to control any construction, design review, ACC, or aesthetic standards committee or process. This right shall terminate on the date Declarant no longer owns a Unit. 11.5 Voluntary Termination of Declarant Rights. Declarant may voluntarily terminate any or all of Declarant's Special Declarant Rights at any time by recording an amendment to this Declaration, which amendment shall specify which right is terminated. 11.6 Amendments, Extension of Time Limits, Etc. Time limits for the exercise of reserved Development Rights may be extended, and additional Development Rights may be created, as provided in RCW 64.90.285(7). The provisions of this Declaration Bethany Corner Declaration Page 27 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-28 of 67 Record Date:9/15/2021 11:35 AM King County, WA which create Special Declarant Rights that have not expired may not be amended without the consent of Declarant. 11.7 Unit Combination. Declarant reserves, as a Development Right, to create Common Elements within the Community. With respect to Units owned by Declarant, Declarant reserves the right to combine Units and/or convert Units into Common Elements. The foregoing right shall terminate on the earlier of (i) of the date that Declarant no longer owns any Unit in the Community, or (ii) 12 years from the date this Declaration is recorded 11.8 Declarant's Easements. Declarant, for itself and its successors, assigns and agents, hereby reserves as a Special Declarant Right, an easement for use, access, ingress and egress, over, under and through Common Elements allocated to the Community, as may be reasonably necessary for the purpose of discharging Declarant's obligations or exercising Special Declarant Rights (including Declarant's Development Rights), whether arising under the Act or reserved in this Declaration and including., without limitation, for the purpose of making Improvements within the Community and within real estate that may be added to the Community, if any. Additional easement reserved by Declarant are in Section 14. Declarant retains an easement across all parts of the Property for two years from the date of the last sale of a Unit to perform any obligations it has to the City of Renton, including to ensure that landscaping survives and that the storm water system is functioning. ARTICLE 12: ENTRY FOR REPAIR OR MAINTENANCE Upon prior notice, except in case of an emergency, each Unit Owner must afford to the Association, and to its agents or employees, access into and through that Owner's Unit reasonably necessary for maintenance and repair of the property, including necessary inspections by the Association. The Board and its agents may enter any Unit when the Board deems necessary in connection with any inspection, maintenance, repair, landscaping or construction carried out by the Board, in the event of an emergency, or in connection with any maintenance or other necessary repairs, replacement, construction, or other activity for which the Unit Owner is responsible but has failed to perform. Access within the Unit is NOT intended to grant the Association access within any structure or dwelling within the Unit. a) Such entry shall be made with as little inconvenience to the Owner and/or Occupant as practicable. Except in emergencies, Notice shall be provided at least five (5) days in advance, and shall be posted on the door to the Unit at least forty-eight (48) hours in advance of entry. b) Each Owner shall provide the Association access into their Unit for compliance with this Section. Common expenses incurred due to an Owner's failure to provide access will be assessed to the Unit. c) If damage is inflicted on any Unit through which access is taken, the Unit Owner responsible for the damage, or the Association if it is responsible, is liable for the prompt repair of the damage. Bethany Corner Declaration Page 28 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-29 of 67 Record Date:9/15/2021 11:35 AM King County, WA d) If an Owner or other occupant is displaced due to fire, damage, or necessary repairs to the Community, the Association has no liability for the cost of moving, storage, or alternative housing. These are risks that each Owner can insure themselves for. If an Owner refuses to remove contents of a Unit when necessary for the Association to perform its work, any costs incurred by the Association for the removal or protection of persons or contents shall be assessed against the Owner and the Unit. ARTICLE 13: OWNERS ASSOCIATION 13.1 Form of Association. The Owners of Units shall constitute an Owners Association to be known as the Bethany Corner Homeowners Association. The Association shall be organized as a nonprofit corporation in accordance with RCW Ch. 24.06 and 64.90.400, no later than the date the first Unit in the Community is conveyed. The number of Board Members and qualifications and procedures for election to the Board shall be provided in the Bylaws. The rights and duties of the Board and of the Association shall be governed by the provisions of the Act, the Declaration, and the Bylaws. 13.2 Bylaws. The Association will adopt Bylaws to supplement the Declaration, provide for the administration of the Association and the property, and for other purposes not inconsistent with the Act or the Declaration. 13.3 Qualification and Transfer. Each Owner of a Unit (including the Declarant) shall be a member of the Association and shall be entitled to one membership for each Unit owned, which membership shall be considered appurtenant to that Member's Unit. Ownership of a Unit shall be the sole qualification for membership in the Association except as provided in RCW 64.90.400 in connection with termination of the Community. A membership shall not be transferred in any way except upon the transfer of title to the Unit and then only to the transferee of title to the Unit, provided that if a Unit has been sold on contract, the contract purchaser shall exercise the rights of Owner for purposes of the Association, this Declaration, and the Bylaws, except as hereinafter limited, and shall be the voting representative unless otherwise specified. Any attempt to make a prohibited transfer shall be void. Any transfer of title to a Unit shall operate automatically to transfer the membership in the Association to the new Owner. 13.4 Powers and Duties of the Association. Subject to any specific restrictions in this Declaration, and the Act, the Association shall have all power and authority given it in this Declaration, the Bylaws, its Articles of Incorporation and certificate.of formation, and permitted, conferred, or authorized by RCW Ch. 24.06, RCW 64.90.405, and all other provisions of the Act and other applicable laws. Without limiting the foregoing, the Association shall have the power to assign its right to receive future income, including the right to receive assessments, subject to 64.90.405(4). 13.4.1 The Association shall have the power to: (a) Amend organizational documents and adopt and amend rules; (b) Amend budgets under RCW 64.90.5251 (c) Hire and dischargemanaging agents and other employees, agents, and independent contractors; Bethany Corner Declaration Page 29 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-30 of 67 Record Date:9/15/2021 11:35 AM King County, WA (d) Institute, defend, or intervene in litigation or in arbitration, mediation, or administrative proceedings or any other legal proceeding in its own name on behalf of itself or two or more Unit Owners on matters affecting the Community, but the approval of Owners holding at least two-thirds of the votes in the Association shall be required before the Association may institute, commence or intervene in any litigation or administrative proceeding, including arbitration, other than litigation or other proceedings against Owners for collection of delinquent Assessments or for enforcement of the Declaration or rules and regulations of the Association; but Owner approval shall not be required for settlement of such litigation or administrative proceedings; (e) Make contracts and incur liabilities subject to ratification if required by the Declaration or Statute; (f) Regulate the use, maintenance, repair, replacement, and modification of Common Elements; (g) Cause additional improvements to be made as a part of the Common Elements; (h) Acquire, hold, encumber, and convey in its own name any right, title, or interest to real estate or personal property, but Common Elements may be conveyed or subjected to a security interest pursuant to RCW 64.90.465 only, and further provided that: (i) If the estimated cost of any separate property acquisition, addition, or improvement to the Community exceeds $5,000, the approval of the Owners holding a majority of the votes in the Association shall be required; (ii) No structural change shall be made to a Unit without the approval of the Owner of that Unit; and (iii) The beneficial interest in any property acquired by the Association pursuant to this Section shall be owned by the Owners in the same proportion as their respective interests in the Common Elements and shall thereafter be held, sold, leased, mortgaged, or otherwise dealt with as the Board shall determine; (i) Grant easements, leases, licenses, and concessions through or over the Common Elements and petition for or consent to the vacation of streets and alleys; 0) Impose and collect any reasonable payments, fees, or charges for: (i) The use, rental, or operation of the Common Elements described in RCW 64.90.210 (1)(b) and (3); (ii) Services provided to Unit Owners; and (k) Collect assessments and impose and collect reasonable charges for late payment of assessments; (1) Enforce the Governing Documents and, after Notice and Opportunity to be Heard, impose and collect reasonable fines for violations of the Governing Documents Bethany Corner Declaration . Page 30 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-31 of 67 Record Date:9/15/2021 11:35 AM King County, WA in accordance with a previously established schedule of fines adopted by the Board of Directors and furnished to the Owners. See also Article 18; (m) Impose and collect reasonable charges for the preparation and recordation of amendments to the declaration, resale certificates required under RCW 64.90.640, lender. questionnaires, or statements of unpaid assessments; (n) Provide for the indemnification of its officers and Board Members, to the extent provided in RCW 23B.17.0301 (o) Maintain directors' and officers' liability insurance; (p) Subject to RCW 64.90.405(4), assign its right to future income, including the right to receive assessments; (q) Establish and administer a reserve account as described in RCW 64.90.535; (r) Prepare a reserve study as described in RCW 64.90.545; (s) Exercise any other powers conferred by the declaration or organizational documents; (t) Exercise all other powers that may be exercised in this state by the same type of entity as the Association; (u) Exercise any other powers necessary and proper for the governance and operation of the Association; (v) Require that disputes between the Association and Unit Owners or between two or more Unit Owners regarding the Community, other than those governed by chapter 64.50 RCW, be submitted to dispute resolution as provided in Article 18; and (w) Suspend any right or privilege of a Unit Owner who fails to pay an assessment, but may not: (i) Deny a Unit Owner or other occupant access to the Owner's Unit; (ii) Suspend a Unit Owner's right to vote; or (iii) Withhold services provided to a Unit or a Unit Owner by the Association if the effect of withholding the service would be to endanger the health, safety, or property of any person. 13.4.2 Power to Adopt Rules. Subject to the provisions of this Declaration, and the Act, the Association has the power to adopt Rules. Every Rule adopted by the ,Association must be reasonable. The Association's power to adopt Rules shall include, without limitation, the power to adopt Rules to establish and enforce construction and design criteria and aesthetic standards and, in the event such Rules are adopted, the Association shall adopt procedures for enforcement of those standards and for approval of construction applications, including a reasonable time within which the Association must act after an application is submitted and the consequences of its failure to so Act. In adopting Rules, the Association must comply with requirements of this Section and all other provisions of this Declaration and the Act. Without limiting the foregoing, the Association may adopt Rules that affect the use or occupancy of or behavior in Units only to: (a) implement a provision of this Declaration; (b) regulate any behavior in or Bethany Corner Declaration Page 31 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-32 of 67 Record Date:9/15/2021 11:35 AM King County, WA occupancy of a Unit that violates this Declaration or adversely affects the use and enjoyment of other Units or the Common Elements by other Occupants; and (c) restrict the leasing of Units to the extent those Rules are reasonably designed to meet underwriting requirements of Institutional Lenders that regularly make loans secured by first mortgages on units in comparable common interest communities or Secondary Market -Participants. 13.4.3 Notice. Except where this Declaration provides otherwise, before adopting, amending, or repealing any Rule, the Board must give all Owners notice of: (a) its intention to adopt, amend, or repeal a Rule and provide the text of the Rule or the proposed change; and (b) a date- on which the Board will act on the proposed Rule or amendment after considering comments from Owners. Following adoption, amendment, or repeal of a Rule, the Association must give notice to the Owners of its action and provide a copy of any new or revised Rule. The Association's internal business operating procedures need not be adopted as Rules. 13.5 financial Statements and Records. The Association shall keep financial records in sufficient detail to enable the Association to comply with the resale certificate requirements set forth in RCW 64.90.640. All financial and other records shall be made reasonably available for examination by any Unit Owner and the Owner's authorized agents. At least annually, the Association shall prepare, or cause to be prepared, a financial statement of the Association in accordance accrual accounting principles. The financial statement shall be completed in time for the Association's annual meeting and in any event within 120 days following the end of the fiscal year. Any Mortgagee will, upon request, be entitled to receive the annual financial statement within 120 days following the end of the fiscal year. The Board, or persons having 35% of the voting power of the Association, may require that an audit of the Association and management books be presented at any annual or special meeting. An Owner, at their expense, may at any reasonable time conduct an audit of the books of the Board and Association.. Upon written request of FHLMC, FNMA, HUD or VA, if it is a Mortgagee, the Association shall provide such Mortgagee within a reasonable time the financial statement of the Association for the preceding fiscal year. 13.6 Inspection of Community Documents, Books, and Records. The Association shall make available to Owners, Mortgagees, and their respective authorized agents, the records, and financial statements of the Association. "Available" shall mean available for inspection upon request, during normal business hours or under other reasonable circumstances. The Association may require the requesting party to pay a reasonable charge to cover the cost of making the copies. The Association must retain the records and information specified in RCW 64.90.495. Emails between Board Members or between managers and Board Members are not records of the Association unless they are the written consent to an action taken outside of a Board meeting. Records retained by the Association may be withheld from inspection and copying to the extent that they concern: (a) personnel and medical records relating to specific individuals; Bethany Corner Declaration Page 32 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-33 of 67 Record Date:9/15/2021 11:35 AM King County, WA (b) contracts leases, and other commercial transactions to purchase or provide goods or services currently being negotiated; (c) existing or potential litigation or mediation, arbitration, or administrative proceedings; (d) existing or potential matters involving federal, state, or local administrative or other formal proceedings before a governmental tribunal for enforcement of the governing documents; (e) legal advice or communications that are otherwise protected by the attorney -client privilege or the attorney work product doctrine, including communications with the Managing Agent or other agent of the Association; (f) information the disclosure of which would violate a court order or law; (g) Records of an executive session of the Board; (h) individual unit files other than those of the requesting Owner; (i) unlisted telephone number or electronic address of any Owner or Resident; 6) security access information provided to the Association for emergency purposes; or (k) agreements that for good cause prohibit disclosure to the Owners -13.7 Right to Enforce Governing Documents. Subject to the provisions of the Governing Documents and the Act, the Association shall have the right to enforce the provisions of this Declaration and the other Governing Documents, including by litigation if necessary. The As may, after Notice and Opportunity to be Heard, impose and collect reasonable fines for violations of the Governing Documents (other than a failure to pay an Assessment) in accordance with a previously established schedule of fines adopted by the Board and furnished to Owners. The Association's lien and collection rights for unpaid Assessments are described in Article 17 the Association's rights against tenants and Owners whose tenants violate a Governing Document are described in Sections 10.3 and 18.10. If the Association is a substantially prevailing party in any action to enforce the Declaration, or in any settlement, or if the violator voluntarily complies after expiration of the cure periods provided above, all costs and attorneys' fees in connection therewith shall be Specially Assessed against the Unit in question. 13.8 Decision to Take Enforcement Action. The Board may determine whether to take enforcement action by exercising the Association's power to impose sanctions or commencing an action for a violation of the Governing Documents, including whether to compromise any claim for unpaid Assessments or other claim made by or against it. The Board does not have a duty to take enforcement action if it determines that, under the facts and circumstances presented: (i) the Association's legal position does not justify taking any or further enforcement action; (ii) the covenant, restriction, or rule being enforced is, or is likely to be construed as, inconsistent with law; (iii) although a violation may exist or may have occurred, it is not so material as to be objectionable to a reasonable person or justify expending the Association's resources; or (iv) it is not in the Association's best interests to pursue an enforcement action. The Board's decision not pursue enforcement under one set of circumstances does not prevent the Board from taking action under another set of circumstances, but Bethany Corner Declaration Page 33 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-34 of 67 Record Date:9/15/2021 11:35 AM King County, WA the Board may not be arbitrary or capricious in taking enforcement action. The Board shall provide notice to Owners of any legal proceeding in which the Association is a party. ARTICLE 14: DECLARANT CONTROL PERIOD 14.1 Declarant Control Until Transition Date. Until the Transition Date, Declarant shall have the right to appoint and remove all members of the Board, provided that (a) not later than 60 days after conveyance of 25% of the Units that may be created to Owners other than Declarant, at least one member and not less than 25% of the members of. the Board must be elected by Owners other than Declarant and (b) not later than 60 days after conveyance of 50% of the Units that may be created to Owners other than Declarant, not less than one-third of the members of the Board must be elected by Owners other than Declarant. -14.2 Transition Date. , Declarant Control of the Association shall terminate on the Transition Date. The Transition Date shall be no later than the earlier of (a) 60 days after conveyance of 75% of the Units that may be created to Owners other than Declarant, (b) five years after the date of recording of this Declaration, (c) the last exercise of a Development Right to create a Unit, or (d) the date on which Declarant records an amendment to this Declaration signed by Declarant and the Project Mortgagee pursuant to which Declarant voluntarily surrenders the right to further appoint and remove officers and members of the Board. If Declarant voluntarily surrenders control pursuant to (d) above, Declarant may require that for the duration of the period of Declarant Control, specified actions of the Association or the Board, as described in a recorded instrument executed by -Declarant, be approved by Declarant before they become effective. 14.3 Declarant's Transfer of Association Control. Within 30 days after the Transition Date, Declarant shall deliver to the Association or to the Managing Agent all property and matters required to be delivered by RCW 64.90.420 of the Owners and of the Association held or controlled by Declarant. 14.4 Audit of Records Upon Transfer. Upon termination of the period of Declarant Control, the records of the Association shall be audited as of the date of transfer by an independent certified public accountant in accordance with generally accepted auditing standards unless the Owners, other than Declarant, by two-thirds vote, elect to waive the audit. The costs of the audit shall be a Common Expense. Any audit shall complaint with the requirements of RCW 64.90.420. 14.5 Termination of Contracts and Leases Made by Declarant. If entered into before the Board elected pursuant to Section 15.1 takes office, (a) any management contract, employment contract, or lease of recreational or parking areas or facilities or (b) any other contract or lease between the Association and Declarant or an affiliate of Declarant, as defined by RCW 64.90.010(1), may be terminated without penalty by the Association at any time after the Board elected pursuant to Section 15.1 takes office upon not less than 90 days' notice to the other party or within such less notice period provided for without penalty in the contract or lease. This Section does not apply to any lease, the termination of which would terminate the Community or reduce its size, Bethany Corner Declaration Page 34 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-35 of 67 Record Date:9/15/2021 11:35 AM King County, WA unless the real property subject to that lease was included in the Community for the purpose of avoiding the right of the Association to terminate a lease under this Section. ARTICLE 15: THE BOARD 15.1 Selection of the Board and Officers. Prior to the Transition Date, election or appointment of members of the Board shall be governed by Section 14.1. Within 30 days after the Transition Date, the Board shall be composed as determined by the Bylaws. The number of Board members and their terms of services shall be specified in the Bylaws. The Board shall elect officers in accordance with the procedures provided in the Bylaws. The. members of the Board and officers shall take office upon election. Removal of Board members, and their terms of service shall be as provided in the Bylaws. 15.2 Powers of the Board. Except as provided in this Declaration, the Bylaws or the Act, the Board shall at all times act on behalf of the Association. The Board may exercise all powers of the Association, except as otherwise provided in the Act, Declaration, or the Bylaws, to adopt and publish rules and regulations governing the use of the Properties and the personal conduct of the members and their guests thereon, except those powers reserved to the members by the Declaration or the Act. 15.3 Managing Agent. The Board may contract with a Managing Agent to assist the Board in the management and operation of the Community, and may delegate such of its powers and duties to the Managing Agent as it deems to be appropriate, except as limited herein. Any contract with a Managing Agent shall have a term no longer than one year (but may be renewable by agreement of the parties for successive one-year periods) and shall be terminable by the Board without payment of a termination fee, either (a) for cause, on 30 days' written notice or (b) without cause, on not more than 90 days' written notice. 15.4 Limitations on Board Authority. The Board shall not act on behalf of the Association to amend this Declaration in any manner that requires the vote or approval of the Unit Owners or Eligible Mortgagees pursuant to Article 26, to terminate the Community pursuant to Article 27, or to elect members of the Board or determine the qualifications, powers, and duties, or terms of office of members of the Board. The Board may, in accordance with the Bylaws, fill vacancies in its membership for the unexpired portion of any term. 15.5 Removal of Board Members, Officers. The Board may, without a Unit Owner vote, remove from the board a Board member or officer elected by, Owners if (i) the Board member or officer is delinquent in the payment of the Assessments more than 60 days and (ii) the board member or officer has not cured the delinquency within 30 days after receiving notice of the Board's intent to remove the Board member or officer. The Board may remove an officer elected by the Board at any time, with or without cause. The removal must be recorded in the minutes of the next Board meeting. Bethany Corner Declaration Page 35 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-36 of 67 Record Date:9/15/2021 11:35 AM King County, WA ARTICLE 16: BUDGET AND ASSESSMENTS 16.1 Fiscal Year. The Board may adopt such fiscal year for the Association as it deems to be convenient. Unless another year is adopted, the fiscal year will be the calendar year. 16.2 Preparation of Budget. . Not less than 30 days before the end of the fiscal year the Board shall prepare a budget for the Association for the coming year. In preparing its budget the Board shall estimate the Common Expenses of the Association to be paid during the year, make suitable provision for accumulation of reserves, including amounts reasonably anticipated to be required for operation, maintenance, repair, and replacement of the Common Elements, and shall take into account any surplus or deficit carried over from the preceding year, and any expected income to the Association. Declarant shall prepare the initial budget for the first fiscal year of the Association. The Budget shall comply substantially with RCW 64.90.525. 16.3 Ratification of Budget. Within 30 days after adoption of any proposed budget for the Community after the Transition Date, the Board shall provide a summary of the budget to all the Owners and shall set a date for a meeting of the Owners to consider ratification of the budget not less than 14 nor more than 50 days after mailing of the summary. Unless at that meeting the Owners to which a majority of the votes in the Association are allocated reject the budget, the budget is ratified, whether or not a quorum is present. In the event the proposed budget is rejected or the required notice is not given, the periodic budget last ratified by the Unit Owners shall be continued until such time as the Unit Owners ratify a subsequent budget proposed by the Board. 16.4 Supplemental Budget. If during the year the budget proves to be inadequate for any reason, including nonpayment of any Owner's Assessment, the Board may prepare a supplemental budget for the remainder of the year. A supplemental budget that results in an increase in an Owner's Assessments shall be subject to ratification pursuant to Section 16.3. The board, at any time, may propose a special assessment against all Units. The assessment is effective -only if the board follows the procedures for ratification of a budget described in section 16.3 and the Unit Owners do not reject the proposed assessment. The board may provide that the special assessment may be due and payable in installments over any period it determines and may provide a discount for early payment. 16.5 Assessments. The amounts required by the Association for Common Expenses as reflected by the annual budget and any supplemental budgets shall be divided into installments to be paid at a time and frequency determined by the Board, over the period of time covered by the budget or supplemental budget. The Assessment for each Unit is the total of the Common Expense Liability for all Units during the period of time covered by the Budget or Supplemental Budget multiplied by the Common Expense percentage stated on Exhibit B, Section 5. Assessments begin accruing for all Units upon the closing of the sale of the first Unit by the Declarant, provided that the Declarant may delay the commencement of Assessments for Common Expenses and pay all actual Common Expenses (but no allocations to reserves). All Common Expenses liability shall be assessed against all Units in accordance with their Common Bethany Corner Declaration Page 36 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-37 of 67 Record Date:9/15/2021 11:35 AM King County, WA Expense Liability Percentage as set forth in Exhibit B. All Assessments shall comply with the requirements of RCW 64.90.480. 16.6 Common Expenses. "Common Expenses" include, without limitation, (i) allocations to reserves, (ii) all costs arising out of or in connection with the operation of the Association, including all cost of insurance policies and bonds, overhead expenses of the Association such as postage, management fees, accounting fees, expenses of collecting delinquent expenses, any expense for Utility Services not separately metered to an individual Unit, (iii) all costs of managing, maintaining, repairing and replacing Common Elements or other Improvements for which the Association is responsible, and (iv) all expense of the Association in performing its obligations under this Declaration, or other Governing Document, or the Act, or enforcing or implementing any provisions of this Declaration. 16.7 Contribution to Initial Working Capital. In connection with the closing of the sale of the first Unit and of the sale of each additional Unit, the initial purchaser shall pay to the Association as a nonrefundable contribution to an initial working capital fund in an amount equal to two times the estimated monthly Assessment against the Unit, which amount shall not be considered as an advance payment of regular Assessments. On the Transition Date, Declarant shall make such contribution for any Units remaining unsold on that date and shall be entitled to be 'reimbursed the amount so paid as each such Unit is conveyed. Declarant shall not use any of the working capital fund to defray Any of its expenses, reserve contributions, or construction costs or to make up any budget deficits prior to the Transition Date. 16.8 Special Assessments. For those Common Expenses which cannot reasonably be calculated and paid on a monthly basis, the Board may levy special Assessments for such expenses against the Units, subject to ratification by Owners pursuant to Section 16.3. 16.9 Specially Allocated Expenses. The following expenses of the Association must be assessed against the units on some basis other than common expense liability. the Association must assess expenses specified in the declaration as benefiting fewer than all of the Units or their Unit Owners exclusively against the units benefited All expense of the Association which are specially allocated to an Owner under this Declaration shall be Assessments against such Owner's Unit and may be collected and foreclosed by the Association in the same manner as Assessments are collected and foreclosed under Article 17. 16.10 Owner Liability for Misconduct, Deductible Amounts. Any liability for costs allocated to a particular Owner under this Section shall constitute a specially allocated expense and an Assessment against such Owner's Unit and shall be payable within 30 days of demand. 16.10.1 Gross Negligence, Willful Misconduct. To the extent that any expense of the Association is caused by willful misconduct or gross negligence of any Owner or Related Party or that Owner's tenant or other Occupant, or the guest or invitee of the Owner or Occupant, the Association may Bethany Corner Declaration Page 37 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-38 of 67 Record Date:9/15/2021 11:35 AM King County, WA assess that expense against the Owner's Unit after Notice and Opportunity to be Heard given to such Owner, even if the Association maintains insurance with respect to that damage or Common Expense. 16.10.2 Negligence. To the extent that any expense of the Association is caused by the negligence of any Owner or that Owner's tenant or other Occupant, or their respective guests or invitees, the Association may assess that expense against the Owner' Unit after Notice and Opportunity to be Heard given to the Owner, to the extent of the Association's. deductible and any expenses not covered under an insurance policy issued to the Association. 16.10.3 Damage to a Unit. Assessments made against a Unit Owner pursuant to Section 16.10.1 and 16.10.2 shall not prevent an Owner from asserting a claim against another person for the amount assessed if that other person would be liable for the damages under general legal principles. 16.11 Creation of Reserves, Assessments. The Board shall create reserve accounts for anticipated expenses for repair or replacement of the Common Elements which will occur in the future in order to accumulate sufficient funds to pay such expenses when they occur. 16.11.1 Reserve Study. The Association shall have prepared or shall update, as applicable, a reserve study prepared by a reserve study professional in accordance with the requirements of RCW 64.90.545 and 64.90.550. When more than three years have passed since the date of the last reserve study prepared by a reserve study professional, Owners of Units to which at least 20% of the votes in the Association are allocated may demand in a Record delivered to the Board that the cost of a reserve study be included in the next annual budget and that the study be prepared by the end of that budget year. The demand must refer to RCW 64.90.555(1). The Board must, upon receipt of the demand, include cost of a reserve study in the next budget and, if that budget is not rejected by Owners pursuant to Section 16.3 for the preparation of a reserve study, arrange for the preparation of a reserve study. Actions by one or more Owners to enforce the reserve study requirements set forth in the Act may be brought as provided for in RCW 64.90.555. 16.11.2 Reserves and Reserve Accounts. The Board shall establish, administer, and Maintain (i) a reserve fund for the maintenance, repair, and replacement of Common Elements and other areas of Improvements for which the Association is responsible under this Declaration. Budgeted reserves for maintenance, repairs, and Replacements shall be sufficient to satisfy requirements of Secondary Market Participants and the Act. Reserve funds shall be held in one or more income -earning accounts separate from the Association's Operating account and shall be under the direct control of the Board, with monthly statements going directly to each of the officers of the Association (not just to the Managing Agent, if any) 16.11.3 Withdrawals. The Board may withdraw funds from the Association's Reserve Account to pay for unforeseen or unbudgeted costs that are unrelated to replacement costs of the reserve components. Any such Bethany Corner Declaration Page 38 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-39 of 67 Record Date:9/15/2021 11:35 AM King County, WA withdrawal must be recorded in the minute books of the Association. The Board must give notice of any such withdrawal to each. Owner and adopt a repayment schedule not to Exceed 24 months unless the Board determines that repayment within 24 months would impose an Unreasonable burden on the Owners. The Board must provide to Owners along with the annual budget Adopted in accordance with this Declaration (a) notice of any such withdrawal, (b) a statement of the current Deficiency in reserve funding expressed on a per Unit basis, and (c) the repayment plan. The Board may withdraw funds from the reserve account without satisfying the notification of repayment requirements under this Section to pay for replacement costs of reserve components not included in the reserve study. 16.1.2 Notice of Assessments. The Board shall notify each Owner in writing of the amount of the monthly general and specially allocated expenses (if known) to be paid for the Owner's Unit and shall furnish copies of all budgets on which the general and specially allocated expenses are based. The Board shall furnish the same information to an Owner's Mortgagee if so requested. 16.13 Payment of Monthly Assessments. On or before the first day of each calendar month each Owner shall pay or cause to be paid to the treasurer or designated agent of the Association all Assessments against the Unit for that month. Any Assessment not paid by the fifteenth day of the calendar month for which it is due shall be delinquent and subject to late charges, interest charges and collection procedures as provided in Article 17. The Association shall provide each Eligible Mortgagee with timely written notice of any 60 day delinquency in the payment of Assessments or charges owed by the Owner of any Unit on which such Eligible Mortgagee holds a Mortgage. To the extent not inconsistent with the Act, in addition to those rights of the Association in connection with unpaid Assessments under the Act and this Declaration, the Association shall have all additional remedies for collections Assessments as may be permitted by law. 16.14 Reconciliation of Assessments to Actual Expenses. The Association shall establish and maintain its accounts and records in such a manner that will enable it to deposit the Assessments for Common Expenses, including allocations to reserves, and income to the Association to the account of the appropriate Units and make its expenditures from the appropriate accounts. In order that Unit Owners are correctly assessed for the actual expenses of the Association, the accounts of the Association shall be reconciled at least annually; and any surpluses (or deficits) in the accounts shall be credited to the benefit of or paid to (or charged to the account of or assessed against) Owners of the Units who paid the surplus (or owe the deficit). 16.15 Proceeds Belong to Association. All Assessments and other receipts received by the Association on behalf of the Community shall belong to the Association. 16.16 Failure to Assess. Any failure by the Board or the Association to make the budgets and Assessments hereunder before the expiration of any year for the ensuing year shall not be deemed a waiver or modification in any respect of the provisions of this Declaration, or a release of Owners from the obligation to pay Assessments during that or any subsequent year, and the monthly Assessments Bethany Corner Declaration Page 39 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-40 of 67 Record Date:9/15/2021 11:35 AM King County, WA amounts established for the preceding year shall continue until new Assessments are established. 16.17 Certificate of Unpaid Assessments. Upon the request of any Owner or Mortgagee of a Unit, the Board will furnish a certificate stating the amount, if any, of unpaid Assessments charged to the Unit. The certificate shall be conclusive upon the Board and the Association as to the amount of such indebtedness on the date of the certificate in favor of all purchasers and Mortgagees of the Unit who rely on the certificate in good faith. The Board may establish a reasonable fee to be charged to reimburse it for the cost of preparing the certificate. The liability of a recipient who reasonably relies upon the statement must not exceed the amount set forth in any statement furnished pursuant to this Section 16.16 or RCW 64.90.640(1)(b), pertaining to resale certificates. 16.18 Recalculation of Assessments. If Common Expense Liabilities are reallocated, Assessments and any installment thereof not yet due shall be recalculated in accordance with the reallocated liabilities. ARTICLE 17: LIEN AND COLLECTION OF ASSESSMENTS 17.1 Assessments Are a Lien; Priority. The Association's lien rights on a Unit for unpaid Assessments, the priority of such liens, and the Association's foreclosure rights, are set forth in RCW 64.90.485. Record notice and perfection of the Association's lien shall be accomplished in the manner provided in RCW 64.90.485. Actions to foreclose a lien on a Unit must comply with the requirements of RCW 64.90.485. Proceeds of any Foreclosure shall be applied as provided in RCW 64.90.485. The Association has a lien on a Unit for any unpaid Assessment levied against a Unit from the time the Assessment is due. A lien under this Article shall be prior to all other liens and encumbrances on a Unit except (a) liens and encumbrances recorded before the recording of this Declaration; (b) a Mortgage on the Unit recorded before the date on which the Assessment sought to be enforced became delinquent, EXCEPT to the extent of Assessments for Common Expenses, excluding any amounts for capital improvements, based on the periodic budgets adopted by the Association pursuant to Article 16 which would have become due during the six months immediately preceding the date of a sheriffs sale in an action for judicial foreclosure by either the Association or a Mortgagee, the date of trustee's sale in a non -judicial foreclosure of a Mortgage, or the date of recording of the declaration of forfeiture in a proceeding by the vendor under a real estate contract, provided that the priority of the Association's lien against Units encumbered by a Mortgage held by an Eligible Mortgagee or by a Mortgagee which has given the Association a written request for a notice of delinquent Assessments shall be reduced by up to three months if and to the extent that such lien priority includes any delinquencies which relate to a period after such Mortgagee becomes an Eligible Mortgagee or has given such notice and before the Association gives such Mortgagee a written notice of the delinquency, and (c) liens for real property taxes and other governmental assessments or charges against the Unit. Recording of this Declaration constitutes record notice and perfection of the lien for Assessments; however, the Association may record a notice of claim of lien for Assessments in the Bethany Corner Declaration Page 40 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-41 of 67 Record Date:9/15/2021 11:35 AM King County, WA real property records of King County. Such recording shall not constitute the written notice of delinquency to a Mortgagee referred to above. 17.2 Lien May Be Foreclosed; Judicial Foreclosure. The lien arising under this Article may be enforced judicially by the Association or its authorized representative in the manner set forth in RCW Ch. 61.12 and RCW 64.90.485, or non -judicially in the manner set forth in Section 17.3. The Association or its authorized representative shall have the power to purchase the Unit at the foreclosure sale and to acquire, hold, lease, mortgage, or convey the same. Upon an express waiver in the complaint of any right to a deficiency judgment in a judicial foreclosure action, the period of redemption shall be eight months. Nothing in this Section shall prohibit the Association from taking a deed in lieu of foreclosure. Except as provided in the exception to (b) in Section 17.1, the holder of a Mortgage or other purchaser of a Unit who obtains the right of possession of a Unit through foreclosure or deed in lieu of foreclosure shall not be liable for any Assessments or installments thereof that became due prior to such right of possession. Such unpaid Assessments shall be deemed to be Common Expenses collectible from all the Owners, including such Mortgagee or other purchaser of the Unit. Foreclosure of a Mortgage does not relieve the prior Owner of personal liability for Assessments accruing against the Unit prior to the date of such sale. 17.3 Nonjudicial Foreclosure. A lien arising under this Article may be foreclosed non judicially in the manner set forth in RCW Ch. 61.24 for non -judicial foreclosure deeds of trust. For the purpose of preserving the Association's non judicial foreclosure option, this Declaration shall be considered to create a grant of each Unit in trust to Fidelity National Title Insurance Company, or its successors or assigns ("Trustee"), to secure the obligations of each Unit Owner ("Grantor") to the Association ("Beneficiary") for the payment of Assessments. The Association may appoint a successor trustee at any time by Notice to all Owners. Granter shall retain the right to possession .of Grantor's Unit so long as Grantor is not in default of an obligation to pay Assessments. Trustee shall have a power of sale with respect to each Unit, which becomes operative in the case of a default in a Grantor's obligation to pay Assessments. The Units are not used principally for agricultural or farming purposes. If the Association forecloses its lien non judicially pursuant to this Section, it shall not be entitled to the lien priority over Mortgages provided in exception (b) of Section 17.1. 17.4 Receiver During Foreclosure. The Association's rights and obligations with respect to appointment of a receiver are set forth in RCW 64.90.485. From the time of commencement of an action by the Association to foreclose a lien for nonpayment of delinquent Assessments against a Unit that is not occupied by Owner thereof, the Association shall be entitled to the appointment of a receiver to collect from the lessee thereof the rent for the Unit as and when due. If the rent is not paid, the receiver may obtain possession of the Unit, refurbish it for rental up to a reasonable standard for rental Units in this type of Community, rent the Unit or permit its rental to others, and apply the rents first to the cost of the receivership and attorney fees thereof, then to the cost of refurbishing the Unit, then to applicable charges, then to costs, fees, and charges of the foreclosure action, and then to the payment of the delinquent Assessments. Only a receiver may take possession and collect rents under this Section, and a receiver shall not be appointed less than 90 days after the delinquency. The Bethany Corner Declaration Page 41 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-42 of 67 Record Date:9/15/2021 11:35 AM King County, WA exercise by the Association of the foregoing rights shall not affect the priority of preexisting liens, on the Unit. 17.5 Assessments Are Personal Obligation. In addition to constituting a lien on the Unit, all sums assessed by the Association chargeable to any Unit, including all charges provided in this Article, shall be the personal obligation of Owner of the Unit when the Assessment is made. Suit to recover personal judgment for any delinquent Assessments shall be maintainable without foreclosing or waiving the liens securing them. 17.6 Extinguishment of Lien and Personal Liability. A lien for unpaid. Assessments and the personal liability for payment of Assessments is extinguished unless proceedings to enforce the lien or collect the debt are instituted within six years after the amount of the Assessments sought to be recovered becomes due. 17.7 Joint and Several Liability. In addition to constituting a lien on the Unit and except as provided in Section 17.2 for a deed in lieu of foreclosure, each Assessment shall be the joint and several obligation of Owner or Owners of the Unit to which the same are assessed as of the time the Assessment is due. In a voluntary conveyance, the grantee of a Unit shall be jointly and severally liable with the granter for all unpaid Assessments against the granter up to the time of the grantor's conveyance, without prejudice to the grantee's right to recover from the grantor the amounts paid by the grantee therefor as provided in RCW 64.90.485. Suit to recover a personal judgment for any delinquent Assessment shall be maintainable in any court of competent jurisdiction without foreclosing or waving the lien securing such sums. 17.8 Late Charges and Interest on Delinquent Assessments. The Association may from time to time establish reasonable late charges and a rate of interest to be charged on all subsequent delinquent Assessments or installments thereof. In the absence of another late charge established by rule, a late charge of $50 each month shall apply. In the absence of another established nonspurious rate, delinquent Assessments shall bear interest from the date of delinquency at the maximum rate permitted under RCW 19.52.020 on the date on which the Assessments became delinquent. 17.9 Recovery of Attorneys' Fees and Costs. The Association shall be entitled to recover any costs and reasonable attorneys' fees incurred in connection with the collection of delinquent Assessments, whether or not such collection activities result in suit being commenced or prosecuted to judgment. In addition, the Prevailing Party shall be entitled to recover costs and reasonable attorneys' fees if it prevails on appeal and in the enforcement of a judgment. 17.10 Security Deposit. An Owner who has been delinquent in paying his monthly Assessments for three of the five preceding months may be required by the Board, from time to time, to make and maintain a security deposit not in excess of three months' estimated monthly Assessments, which shall be collected and shall be subject to penalties for nonpayment as are other Assessments. The deposit shall be held in a separate fund, credited to such Owner, and may be resorted to at any time when such Owner is 10 days or more delinquent in paying Assessments. Bethany Corner Declaration Page 42 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-43 of 67 Record Date:9/15/2021 11:35 AM King County, WA 17.11 Remedies Cumulative. The remedies provided herein are cumulative and the Board may pursue them, and any other remedies that may be available under law although not expressed herein, either concurrently or in any order. 17.12 Delinquent Assessments — Rented or Leased Units. If Assessments are more than 30 days delinquent for a Unit which is rented or leased, the Association may collect from the tenant of the Unit so much of the rent for the Unit as is required to pay any amounts due for Assessments, plus interest and costs. The tenant shall have no right or duty to question payment to the Association, and the payment to the Association will discharge the tenant's obligation to the Owner for rent in the amount of such payment. 17.12.1 Resort may be had to the security deposit described above in Section 17.10 at.any time when such Owner is 10 days or more delinquent in paying such Owner's monthly or other Assessments and charges. Said deposits shall not be considered as advance payments of regular Assessments. In the event the Board should draw upon said deposit as a result of a delinquency in payment of any Assessments or charges, said Owner shall continue to be responsible for the immediate and full payment of said delinquent Assessment (and all penalties and costs thereon) or charges and thus the full restoration of said deposit and the Board shall continue to have all of the rights and remedies for enforcing such Assessment or charges payment and deposit restoration as provided by this Declaration and by law. 17.12.2 Upon the sale of a Unit, the Seller/Owner thereof shall not be entitled to a refund from the Association of any deposit or reserve account made or maintained with respect to such Unit pursuant to this or any other Section of this Declaration; rather, any such deposit or reserve account shall continue to be held by the Association for the credit of such Unit, and the new Unit Owner shall succeed to the benefit thereof, and the Unit Seller shall be responsible for obtaining from the new Unit Owner appropriate compensation therefore. ARTICLE 18: ENFORCEMENT OF DECLARATION, BYLAWS, AND RULES AND REGULATIONS 18.1 Compliance with the Governing Documents is enforced through two distinct processes: Enforcement of Violations, and Disputes. The process for Enforcement of Violations is outlined in Sections 18.2 through 18.5. The process for Disputes is outlined in Section 18.7. Enforcement of a Violation is not a Dispute. However, Enforcement of a Violation can evolve into a Dispute if the final decision of the Board regarding a Violation is challenged. Unpaid Assessments are collected as provided in Article 17, and are not subject to Section 18.7. 18.2 Rights of Action. Each Owner, the Board, and the Association shall comply strictly with this Declaration, the Bylaws, and the Rules and Regulations adopted pursuant thereto, as they may be lawfully amended from time to time, and the decisions of the Board. Failure to comply with any of the foregoing shall be grounds for an action to recover sums due, damages, and for injunctive relief, or any or all of them, maintainable by the Board on behalf of the Association or by an Owner. Bethany Corner Declaration Page 43 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-44 of 67 Record Date:9/15/2021 11:35 AM King County, WA 18.3 Failure of Board to Insist on Strict Performance No Waiver. The failure of the Board in any instance to insist upon the strict compliance with this Declaration or the Bylaws or the Rules and Regulations, or to exercise any right contained in such documents, or to serve any notice or to institute any action, shall not be construed as a waiver or a relinquishment for the future of any term, covenant, condition, or restriction. The receipt by the Board of payment of an Assessment from an Owner, with knowledge of a breach by Owner, shall not be a waiver of the breach. No waiver by the Board of any requirement shall be effective unless expressed in writing and signed for the Board. This Article also extends to Declarant. 18.4 Board Enforcement. The Board has the authority to enforce the Declaration, the Bylaws, and the Rules and Regulations by imposing the remedies provided herein. After repeated violations of the Declaration, Bylaws, or Rules and Regulations by an Owner and after an Owner's Right to Notice and Opportunity to be Heard, the Board shall have the authority to file an action for damages and for injunctive relief, including in a proper case, removal of the Owner from the Owner's Unit and the authority to pursue any and all remedies available in law or equity. The board may determine whether to take enforcement action by exercising the Association's power to impose sanctions or commencing an action for a violation of the governing documents, including whether to compromise any claim for unpaid assessments or other claim made by or against it. The board does not have a duty to take enforcement action if it determines that, under the facts and circumstances presented: (a) The Association's legal position does not justify taking any or further enforcement action; (b) The covenant, restriction, or rule being enforced is, or is likely to be construed as, inconsistent with law; (c) Although a violation may exist or may have occurred, it is not so material as to be objectionable to a reasonable person or to justify expending the Association's resources; or (d) It is not in the Association's best interests to pursue an enforcement action. The.board's decision to not pursue enforcement under one set of circumstances does not prevent the board from taking enforcement action under another set of circumstances, but the board may not be arbitrary or capricious in taking enforcement action. 18.5 Opportunity to Be Heard Whenever this Declaration requires that an action of the Board be taken after Notice and "Opportunity to be Heard," the following procedure shall be observed: The Board shall give Notice, in accordance with Article 28, of the proposed action to all Owners or Occupants whose interest would be significantly affected by the proposed action. The Notice shall include a general statement of the proposed action and a statement that the affected Person may request a hearing, which request shall not be made more than ten (10) days from the date Notice is delivered by the Board, or may respond in writing. Bethany Corner Declaration Page 44 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-45 of 67 Record Date:9/15/2021 11:35 AM King County, WA The Board may conduct the hearing, or may delegate its hearing authority to the manager or to a committee. At the hearing, the affected Person shall have the right, personally or by a representative, to give testimony orally, in writing, or both, subject to reasonable rules of procedure established by the Board to assure a prompt and orderly resolution of the issues. If the affected Person does not request a hearing, or fails to attend a scheduled hearing, the Board or its delegate may base its decision (including, but not limited to, the decision to assess a fine or prohibit the use of one or more Common Elements) on the information it possesses. The affected Person shall be notified of the decision in the same manner in which Notice was given. The Board may establish additional procedures in the Rules and Regulations. 18.6 Challenge to Board's Decision If an Owner challenges any Board decision, including a decision to: (1) find that a Violation has been committed, or (2) to assess a fine or prohibit the use of one or more Common Elements, the Owner may use the Dispute Resolution process in Section 18.7. 18.7 Dispute Resolution 18.7.1 Policy The parties hope there will be no Disputes arising out of their relationship. To that end, each commits to cooperate in good faith and to deal fairly in performing its duties under this Declaration in order to accomplish their mutual objectives and avoid Disputes. 18.7.2 Disputes Between Owners The Board has the discretion but not the obligation to initiate the Dispute Resolution process in response to a Dispute between or among Owners and/or Occupants. In deciding whether to do so, the Board shall consider whether it is in the best interests of the Association. All Owners have the right to initiate the Dispute Resolution process on their own behalf. 18.7.3 Initial Dispute Resolution Procedure Except as provided in Article 17, for collection .of unpaid Assessments, or in the enforcement of the Governing Documents initiated under Section 18.3, any parties who believe they have a Dispute involving the Association, the Declarant, any affiliate of the Declarant, any Board member or Officer of the Association or the Declarant, a Unit Owner, Occupant, or an agent or employee of the above, shall first seek resolution of the Dispute through conversation between the parties. If conversation does not resolve the issues, the complaining party in the Dispute (the "Complainant") shall submit a written statement of the Dispute to the responsible party. This written statement shall include a description of the action taken in violation of the Governing Documents, the harm that resulted, and a proposed solution that would resolve the issue. The party who receives this settlement demand (the "Respondent") shall respond within fourteen (14) days to the Complainant directly, in writing, and shall either agree to the proposed resolution or propose an alternate means of resolution. If a resolution cannot be agreed upon, or if no response is received within fourteen (14) days of the initial demand for resolution, the Dispute shall proceed to mediation, as described in this Article. 18.7.4 Mediation - The parties agree that they will attempt to resolve any Dispute by nonbinding mediation, and that mediation is a condition precedent to Bethany Corner Declaration Page 45 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-46 of 67 Record Date:9/15/2021 11:35 AM King County, WA any form of binding Dispute resolution, including arbitration. The parties are encouraged to use a mediator from a Dispute Resolution Center such as the King County Dispute Resolution Center or from a mediation clinic at the University of Washington School of Law or Seattle University School of Law. Unless otherwise agreed upon by all parties, the Mediator shall be selected from among Washington Arbitration and Mediation Services panelists. A request for mediation shall be made in writing, delivered to the other party. The request may be made concurrently with binding Dispute resolution proceedings, which shall be stayed pending mediation for a period of sixty (60) days from the date of filing, unless stayed for a longer period by agreement of the parties or court order. The parties shall split the cost of the mediation equally, or with equal shares to each participating entity if there are more than two. 18.7.5 Arbitration The parties agree that if they are unable to resolve their Dispute.through mediation, they will submit their Dispute to binding arbitration. The parties confirm that by adopting this alternate Dispute resolution process, they intend to give up their right to have Disputes decided in court by a judge or jury. If a Dispute arises, which cannot be resolved by Mediation, the parties agree -to resolve the Dispute by the arbitration process outlined here, provided that during this process the parties may pursue a settlement. Any Dispute between or among any party subject to this Declaration (including, without limitation, the Association, any Association Board members or officers, Unit Owners, and their employees or agents) arising out of or relating to this Declaration, a Unit, the Community or the Association shall be determined by Arbitration in King county. Any party alleging a claim related to construction shall comply with RCW 64.50 in advance of an arbitration demand. If the parties engage in Mediation but are unable to resolve their Dispute, either party may submit a written demand for Arbitration. If one party requests Mediation and the other refuses to participate, the requesting party may submit a written demand for Arbitration. Unless otherwise agreed upon by all parties, the parties agree that the Arbitrator shall be selected from among Washington Arbitration and -Mediation Services panelists. All statutes of limitation, which would otherwise be applicable, shall apply to any arbitration proceeding hereunder. The party demanding Arbitration shall advance the initial costs of Arbitration. The arbitrator, as part of its decision shall allocate the costs and fees associated with Arbitration among the parties.. The arbitrator shall also have the authority to decide any Disputes that arose out of Mediation, including but not limited to, allocation of the costs and fees associated with Mediation. 18.7.6 Emergency Enforcement Action Exception For violations of the Governing Documents that create safety hazards, affect the insurance coverage afforded to the Association, or otherwise require immediate action, the parties may use the courts for injunctive action to obtain temporary or preliminary rulings. Such actions may include the removal of Owners or Tenants, access to Units, the Bethany Corner Declaration Page 46 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-47 of 67 Record Date:9/15/2021 11:35 AM King County, WA prohibition of specific activities, and restraining orders. The arbitrator shall have final jurisdiction over such Disputes through this Article. 18.7.7 Hearing — Law — Appeal Limited The arbitrator shall take such steps as may be necessary to hold a private hearing within ninety (90) days of the initial demand for Arbitration and to conclude the hearing within one (1) day; and the arbitrator's written decision shall be made not later than fourteen (14) calendar days after the hearing. The arbitrator shall authorize such discovery as may be necessary to ensure a fair hearing. These time limits are intended 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(s) determined and the award made on each claim. In making the decision and award, the arbitrator shall apply applicable substantive law. The arbitrator may award injunctive relief or any other remedy available from a judge, including without limitation, attorney fees and costs to the prevailing party, joinder of parties or consolidation of this arbitration with any other involving common issues or law or fact or which may promote judicial economy; but shall not have the power to award punitive or exemplary damages. 18.8 Attorney Fees and Costs. The prevailing party in any proceeding, including litigation, administrative, mediation, or arbitration, shall be entitled to recover any costs (including all expenses and liabilities, including attorneys' fees and costs, incurred in an action, whether commenced or merely threatened (including proceedings for which the Association is obligated to indemnify a Board member, Association committee member, Association officer, or Managing Agent) and reasonable attorney's fees incurred in connection with any enforcement action, whether or not such action results in a proceeding actually being commenced or prosecuted to judgment. Costs and reasonable attorney's fees incurred in connection with an enforcement action shall be payable and collectible as any other Assessment. 18.9 Applicability to claims against Declarant. The initial and all subsequent purchasers of units expressly consent to arbitration as the exclusive means of resolving any and all disputes that may arise related to the Community and the Association, including those that may involve the Declarant or board members appointed by the Declarant. The arbitrator's award shall be final and binding, and may not be appealed to any court. 18.10 Enforcement against tenants. 18.10.1 If a tenant of a Unit Owner violates the governing documents, in addition to exercising any of its powers against the Unit Owner, the Association may: (a) Exercise directly against the tenant the powers it has against an Owner; (b) After giving Notice and Opportunity to be Heard to the Unit Owner, levy reasonable fines against the Unit Owner for the violation; and Bethany Corner Declaration Page 47 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-48 of 67 Record Date:9/15/2021 11:35 AM King County, WA (c) Enforce any other rights against the tenant for the violation that the Unit -Owner as the landlord could lawfully have exercised under the lease or that the Association could lawfully have exercised directly against the Unit Owner, or both. The Association has the right to terminate a lease or evict a tenant if an Owner has failed to do so. The rights referred to in this subsection (c) may be exercised only if the tenant or Unit Owner fails to cure the violation within ten days after the Association notifies the tenant and Unit Owner of that violation. 18.10.2 Unless a lease otherwise provides, this section does not: (a) Affect rights that the Unit Owner has to enforce the lease or that the Association has under other law; or (b) Permit the Association to enforce a lease to which it is not a party, in the absence of a violation of the governing documents. ARTICLE 19: TORT AND CONTRACT LIABILITY 19.1 Declarant Liability. Neither the Association nor any Owner except Declarant is liable for Declarant's torts in connection with any part of the Community which Declarant has the responsibility to maintain. Otherwise, an action alleging a wrong done by the Association must be brought against the Association and not against any Owner or any officer or director of the Association. If the wrong by the Association occurred during any period of Declarant Control and the Association gives Declarant reasonable Notice of and an opportunity to defend against the action, Declarant who then controlled the Association is liable to the Association or to any Owner (a) for all tort losses -not covered by insurance suffered by the Association or that Owner and (b) for all costs that the Association would not have incurred but for a breach of contract, other wrongful act, or omission by the Association. If Declarant does not defend the action and is determined to be liable to the Association under this Section, Declarant is also liable for all litigation expenses, including reasonable attorneys' fees, incurred by the Association in such defense. Any statute of limitations affecting the Association's right of action under this Section is tolled until the period of Declarant Control terminates. An Owner is not precluded from bringing an action contemplated by this Section because he or she is a Unit Owner or a member or officer of the Association. 19.2 Limitation of Liability for Utility Failure, Etc. Except to the extent. covered by- insurance obtained by the Association, neither the Association nor the Board shall be liable for: any failure of any utility or other service to be obtained and paid for by the Association; or for injury or damage to persons or property caused by the elements, or resulting from electricity, noise, smoke, water, rain (or other liquid), dust or sand which may leak or flow from outside or from any parts of the buildings, or from any of its pipes, drains, conduits, appliances, or equipment, or from any other place; for damage or injury alleged as a result of mold or other microorganisms; or for inconvenience or discomfort resulting from any action taken to comply with any law, ordinance or orders of a governmental authority. No diminution or abatement of Common Expense Assessments shall be claimed or allowed for any such utility failure or water Bethany Corner Declaration Page 48 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-49 of 67 Record Date:9/15/2021 11:35 AM King County, WA leak, or. for such injury or damage, or for such inconvenience or discomfort. The Association is not responsible for loss of use of a Unit, nor for loss of rental income for a Unit. The Association is not responsible to provide for the safety or security of persons or property within the Community. The Association is not responsible to move or store personal property of Owners or occupants because of any casualty event, or as needed to accommodate repairs to Common Elements. 19.3 No Personal Liability. So long as a Board member, Association committee member, Association officer, Declarant, or Managing Agent has acted in good faith, without willful or intentional misconduct, upon the basis of such information as is then possessed by such person, no such person shall be personally liable to any Owner, or to any other person, including the Association, for any damage, loss, or prejudice suffered or claimed on account of any act, omission, error, or negligence of such person, provided that this Section shall not apply where the consequences of such act, omission, error, or negligence is covered by insurance obtained by the Association. ARTICLE 20: INDEMNIFICATION Each Board member, Association committee member, Association officer, Declarant, and Managing Agent shall be indemnified by the Association against all expenses and liabilities, including attorneys' fees, reasonably incurred by or imposed in connection with any proceeding to which such person may be a party, or in which such person may become involved, by reason of holding or having held such position, or any settlement thereof, whether or not such person holds such position at the time such expenses or liabilities are incurred, except to the extent such expenses and liabilities are covered by any type of insurance and except in such cases wherein such person is adjudged guilty of willful misfeasance in the performance of such person's duties; provided, that in the event of a settlement, the indemnification shall apply only when the Board approves such settlement and reimbursement as being for the best interests of the Association. ARTICLE 21: INSURANCE 21.1 Association Insurance. The Association shall maintain, to the extent reasonably available, insurance that complies with the requirements of FNMA and the secondary mortgage market, including Property insurance on the Community, which shall include the Common Elements (BUT SHALL NOT INCLUDE THE UNITS), insuring against all risks of direct physical loss commonly insured against. The total amount of insurance after application of any deductibles shall be not less than the replacement cost of the Common Elements, exclusive of land, excavations, storm water concrete vault, foundations, and other items normally excluded from property policies. 21.2 Additional Insurance. At the discretion of the Board, the Association may obtain insurance for: . (a) Commercial general liability insurance, including medical payments insurance, in an amount determined by the board, covering all occurrences commonly insured against for bodily injury and property damage arising out of or in connection with the use,. Ownership, or maintenance of the Common Elements; Bethany Corner Declaration Page 49 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-50 of 67 Record Date:9/15/2021 11:35 AM King County, WA (b) Fidelity insurance naming the members of the Board, the manager and such other Persons as may be designated by the Board in amount equal to at least the amount of all bank accounts, plus three months estimated cash to be collected as Assessments each year; (c) Directors and Officers liability insurance; (d) Insurance against loss of personal property of the Association by fire, theft and other losses with deductible provisions as the Board deems advisable; and (e) Such other insurance as the Board deems advisable. 21.3 Unavailability of Insurance. If the insurance described in subsection 21.' is not reasonably available, or is modified, canceled, or not renewed, the Association promptly shall cause Notice of that fact to be delivered to all Unit Owners and to each Eligible Mortgagee. 21.4 Insurance Proscribed. Insurance policies carried pursuant to subsection (1) of this section shall provide that: (a) Each Unit Owner is an insured Person under the policy with respect to liability arising out of the Owner's interest in the Common Elements or membership in the Association; (b) The insurer waives its right to subrogation under the policy against any Unit Owner, member of the Owner's household, and lessee of the Owner; and (c) No act or omission by any Unit Owner, unless acting within the scope of the Owner's authority on behalf of the Association, will void the policy or be a condition to recovery under the policy. 21.5 Loss Adjustment through Association. Any loss covered by the Association's property insurance must be adjusted with the Association, but the insurance proceeds for that loss are payable to any insurance trustee designated for that purpose, or otherwise to the Association. The insurance trustee or the Association shall hold any insurance proceeds in trust for Unit Owners and lienholders as their interests may appear. The proceeds must be disbursed first for the repair or restoration of the damaged property, and Unit Owners and lienholders are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the Property has been completely repaired or restored or the Community is terminated. Owners may not make a claim upon the Association's property insurance directly. 21.6 Certificate of Insurance. An insurer that has issued an insurance policy under this section shall issue certificates insurance to the Association and, upon written request, to any Unit Owner or holder of a Mortgage. The insurer issuing the policy may not modify the amount or the extent of the coverage of the policy or cancel or refuse to renew the policy unless the insurer has complied with all applicable provisions of chapter 48.18 RCW pertaining to the cancellation or nonrenewal of contracts of insurance. 21.7 Policy Requirements. The Board shall regularly review the adequacy of the Association's insurance coverage. All insurance policies shall be obtained from insurance carriers that are generally acceptable for similar projects, licensed to do Bethany Corner Declaration Page 50 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-51 of 67 Record Date:9/15/2021 11:35 AM King County, WA business in the state of Washington, and meet the specific requirements of FNMA, FHLMC, VA and HUD regarding the qualifications for insurance carriers. All such policies shall meet the specific requirements of FNMA, FHLMC, VA, and HUD for plat Community projects. All such insurance policies and fidelity bonds shall provide that coverage shall not lapse and may not be cancelled or substantially modified (including cancellation for nonpayment of premium) without at least thirty (30) days' prior written Notice to any and all insureds named therein. 21.8 Unit Owner Insurance 21.7.1 Owner's Additional Insurance. Each Unit Owner shall obtain and maintain an individual insurance policy which provides coverage for the Owner's Unit, including fixtures, finishes and personal belongings therein, and at the Owner's discretion: A) Loss of use, loss of rental income, and loss Assessment exposures; B) Comprehensive Personal Liability coverage for any damage to other Units or Common Elements arising or resulting from the Owner's negligence, carelessness, or acts or omissions, or from damage caused by fixtures or appliances maintained by the Owner; and 21.7.2 Proof of Coverage. Unit Owners shall file a certificate of insurance for such individual policy or policies with the Board within thirty (30) days of any request by the Board. The Association shall have the right but not the obligation to monitor the maintenance of such insurance by Owners. .21.7.3 Unit Owner Obligations. The Association's obligation to insure shall not relieve Unit Owners of their obligations under any other Article of the Declaration, including, but not limited to, the obligation to perform and pay for repairs, maintenance, care and replacement of the Unit for which the Owner is responsible. 21.7.4 Tenant or Occupant Insurance. Unit Owners shall require any Tenants, Related Parties, or other Occupants to obtain Renter's Insurance to protect their personal property, provide for loss of use, and to provide general liability insurance for acts and omissions by the Occupants and their guests, agents, pets and invitees. 21.7.5 Owner's or Occupant's Insurance Deductible. Under no circumstances shall the Association pay any insurance deductible due under a Unit Owner's individual insurance policy or any Tenant's or Occupant's policy of insurance. 21.7.6 Allocation of Costs, including for Property Damage. The costs for repair or damage events to Common Elements are apportioned as follows: 21.7.6.1 Willful Misconduct and Gross Negligence. To the extent that any expense of the Association is caused by willful misconduct or gross negligence of any Unit Owner or that Owner's tenant, guest, invitee, or occupant, the Association may assess that expense against the Bethany Corner Declaration Page 51 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-52 of 67 Record Date:9/15/2021 11:35 AM King County, WA Owner's Unit after Notice and an Opportunity to be Heard, even if the Association maintains insurance with respect to that damage or common expense. 21.7.6.2 Damage Covered by Association Insurance. For damage events that are covered by the Association's insurance, repair costs over the Association's standard insurance deductible are paid for by Association insurance, or by the Association if the Board decides not to file a claim. Repair costs within the Association's standard insurance deductible are assessed: (a) to the Owner if the damage resulted from neglect or misconduct of the Owner, the Owner's Tenants or Occupants, or any of the Owner's, Tenant's, or Occupant's guests, invitees, visitors, agents, or pets; (b) if there is no neglect or misconduct, then to an Owner, if the damage resulted from any vehicle, equipment, appliance or fixture within the Owner's Unit or belonging to the Owner, the Owner's Occupants or Tenants, or any of the Owner's, Tenant's, or Occupant's guests, invitees, visitors, or agents 21.7.6.3 Damage Not Covered by Association Insurance. For damage events that are not covered by the Association's insurance, repair costs shall be assessed: (a) to the Owner if the damage resulted from neglect or misconduct of the Owner, a Related Party, the Owner's Tenants or Occupants, or any of the Owner's, Tenant's, or Occupant's guests, invitees, visitors, agents, or pets; (b) if there is no neglect or misconduct, then to an Owner, if the damage resulted from any vehicle, equipment, appliance or fixture (or wiring or pipes related thereto) within the Owner's Unit or belonging to the Owner, the Owner's Occupants or Tenants, or any of the Owner's, Tenant's, or Occupant's guests, invitees, visitors, or agents; (c) to the extent that the damage to the Property is not insured, and not the responsibility of an individual as noted above, then the Association shall restore all Common Elements as a Common Expense, and Owners shall restore their Units at their own expense. ARTICLE 22: DAMAGE AND REPAIR OF DAMAGE TO PROPERTY 22.1 Application. Any portion of the Community for which insurance is required that is damaged or destroyed must be repaired or replaced promptly by the Association unless: (a) The Community is terminated, in which case RCW 64.90.290 applies; (b) Repair or replacement would be illegal; or (c) Eighty percent of the Unit Owners vote not to rebuild. Bethany Corner Declaration Page 52 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-53 of 67 Record Date:9/15/2021 11:35 AM King County, WA 22.2 Costs. The cost of repair or replacement not paid from insurance proceeds or due from individual Owners is a common expense. 22.3 Failure to Restore Common Elements. If all of the damaged or destroyed portions of the common interest Community are not repaired or replaced: (a) The insurance proceeds attributable to the damaged Common Elements must be used to restore the damaged area to a condition compatible with the remainder of the common interest Community; and (b) Except to the extent that other persons will be distributees: the remainder of the proceeds must be distributed to all the Unit Owners or lienholders, as their interests may appear, in proportion to the Common Element interests of all the Units. (c) Notwithstanding the provisions of this subsection, RCW 64.90.290 governs the distribution of insurance proceeds if the Community is terminated. ARTICLE 23: CONDEMNATION, EMINENT DOMAN. Condemnation of Units or Common Elements shall be as provided for in RCW 64.90.030. ARTICLE 24: EASEMENTS 24.1 In General. Subject to (i) the right of the Association to regulate the use, maintenance, repair, replacement and modification of Common Elements, and (ii) any conveyance or encumbrance of Common Elements in accordance with this Declaration and RCW 64.90.465, Owners shall have an easement in any Common Element walkways, sidewalks, and access drives, for access to their Units. Each Unit and Owner shall have an easement in and through Common Elements These easements and rights are perpetual, run with the Unit estate, and inure to the benefit of all Owners and Occupants and successors in title to the Unit. 24.2 Easements Reserved by Declarant. Declarant reserves an easement over, across, and through the Common Elements of the Community for the purposes of completing any unfinished Units or other improvements, exhibiting and preparing Units for sale, making repairs required pursuant to any contract of sale, to perform repairs to the Community during any warranty provided by statute or contract, and discharging Declarant's obligations or exercising Development Rights or Special Declarant Rights. This Section 24.3 may not be altered or amended without the written consent of the Declarant. 24.4 Utility Easements Granted by Declarant. Declarant grants to each company or municipality providing utility services to the Community or to Owners of Units in the Community a non-exclusive easement for the installation, construction, maintenance, repair, and reconstruction of all utilities serving the Community or Owners, including, without limitation, such utility services as gas, water, sanitary sewer, storm sewer, electricity, cable television, and telephone, and an easement for access over and under the Common Elements of the Community to the utility service facilities. This easement is perpetual, runs with the Unit estate, and shall benefit the Association, each Unit, and the providers of all such Utility Services. Certain of the Utility Service Bethany Corner Declaration Page 53 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-54 of 67 Record Date:9/15/2021 11:35 AM King County, WA Facilities are, or may be, located within the boundaries of one or more Units at locations which may not be identified on any map or plan. Consequently, each Owner is benefited by an easement for the continued use, maintenance, repair and replacement of those Utility Service Facilities from which they benefit and for which such Owner is responsible under this Declaration to the extent the same are located outside the boundaries of such Owner's Unit. 24.5 Additional Easements on Survey Maps. Additional easements are listed Survey Maps to effectuate the Community's existence. These easements cover the following topics: (1) Public Storm Drainage; (2) Specific utilities providing service to, or through, the Community at time of inception; (3) Private Storm Drainage for each Unit; (4) Tree Retention requiring the approval of the City for any non -ordinary maintenance tasks are performed on certain trees; and (5) Private Joint Access driveway for Units 6 and 7. The specifics of these easements are detailed in the Survey Maps.ARTICLE . 25: SUBDIVIDING, COMBINING OR ALTERING UNITS 25.1 Subdivision of Units. agreement or legal proceedings 25.2 Legal Combination of Units with RCW 64.90.265. No Unit shall be subdivided either by Units may be combined in accordance 25.3 Relocation of Boundaries -Adjoining Units. The boundaries between adjoining Units may only be relocated by an amendment to the Survey Maps, pursuant to Article 26, and as approved by the City of Renton, upon application to the Board by Owners of those Units. Unless the Board determines within 30 days that the reallocations are unreasonable, the Association shall prepare an amendment that identifies the Units involved, states the reallocations, is executed by the Unit Owners, contains words of conveyance between them, and is recorded in the name of the grantor and the grantee. The Association shall obtain and record Survey Maps complying with the requirements of RCW 64.34.232(4) necessary to show the altered boundaries between adjoining Units and their dimensions and identifying numbers. Owner or Owners benefited by a reallocation of Unit boundaries shall bear all costs associated therewith in proportion to the relative benefits to each such Unit as determined by the Board or as Owners of such Units agree. 25.4 Fees and Costs; Amendments. All fees and costs, including reasonable attorneys' fees, recording fees, engineering fees and surveyor fees, which are incurred by the Association in connection with consideration of a request for relocation of a boundary under this Article 25 shall be assessed to the Unit, or Units, whose boundary(ies) are being relocated and shall be paid by such Unit Owner(s) upon the Association's presentation of an invoice for such amounts. Upon its approval of the Bethany Corner Declaration Page 54 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-55 of 67 Record Date:9/15/2021 11:35 AM King County, WA application for relocation of a boundary under this Section, the consent or approval of Owners, the consent or approval of Eligible Mortgagees if required under Article 29, and payment of all amounts payable by the Owner(s) under this Section, the Board shall prepare, or have prepared by the Board's legal counsel, have executed, and record, an amendment to this Declaration and the Survey Map in accordance with the requirement of RCW 64.90.260 and Article 25. The amendments are effective upon recording. ARTICLE 26: AMENDMENT OF DECLARATION, SURVEY MAP, ETC. 26.1 Procedures. Except as set forth in RCW 64.90.285(1), this Declaration may be amended only by the vote or agreement of Owners as specified below in this Section 26.1. For purposes of this Section 16, "amendment" means any change to this Declaration or other Governing Documents including adding, removing, or modifying restrictions contained in this Declaration or other Governing Document. The Association's Articles of Incorporation, Bylaws and certificate of formation may be amended by the Board with the vote or agreement of a majority of the Owners. If any provision of this Declaration requires the approval of another Person as a condition of its effectiveness, the amendment is not valid without that approval; however, any right of approval may not result in an expansion of Special Declarant Rights reserved in this Declaration or violate any provision of the Act, including, without limitation, RCW 64.90.015, 64.90.050, 64.90.055, and 64.90.060.Except in cases of amendments that may be executed by Declarant under the Declaration or the Act, the Declaration, the Survey Map, the Articles, and the Bylaws may be amended only by vote or agreement of Owners, as specified in this Article. An Owner may propose amendments to this Declaration or the Survey Map, the Articles, or the Bylaws to the Board. A majority of -the members of the Board may cause a proposed amendment to be submitted to the members of the Association for their consideration. If an amendment is proposed by Owners with 20% or more of the votes in the Association, then, irrespective of whether the Board concurs to the proposed amendment, it shall be submitted to the members of the Association for their consideration at their next regular or special meeting for which timely notice must be given. Notice of a meeting at which an amendment is to be considered shall include the text of the proposed amendment. Amendments may be adopted at a meeting of the Association or by written consent of the requisite number of persons entitled to vote, after notice has been given to all persons (including Eligible Mortgagees) entitled to receive notices. Upon the adoption of an amendment and the obtaining of any necessary consents of Eligible Mortgagees as provided below, amendment to the Declaration or the Survey Map will become effective when it is recorded or filed in the real property records of King County. The amendment shall be indexed in the name of the Community and shall contain a cross-reference by recording number to the Declaration and each previously recorded amendment thereto. Such amendments shall be prepared, executed, recorded, and certified on behalf of the Association by any officer of the Association designated for that purpose or, in the absence of designation, by the president of the Association. Bethany Corner Declaration Page 55 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-56 of 67 Record Date:9/15/2021 11:35 AM King County, WA No action to challenge the validity of an amendment adopted by the Association pursuant to this Article may be brought more than one year after the amendment is recorded. An amendment to the Articles shall be effective upon filing the amendment with the Real Property Records of King County. An amendment to the Bylaws shall be effective upon adoption. 26.2 Percentages of Consent Required. Except as provided in Article 11 in connection with the exercise of Development Rights by Declarant or in Article 22 and Article 23 in the case of damage or condemnation of the property, or Owners acting with the Board under RCW 64.90.285(i) the percentages of consent of Owners and Mortgagees required for adoption of amendments to the Declaration, the Survey Map, the Articles, and the Bylaws are as follows: 26.2.1 The consent of Owners holding at least 67% of the votes in the Association and the consent of Eligible Mortgagees of Units to which at least 51 % of the votes of Units subject to Mortgages held by Eligible Mortgagees are allocated shall be required to materially amend any provisions of the Declaration, the Survey Map, the Articles, or the Bylaws, or to add any material provisions thereto, which establish, provide for, govern, or regulate any of the following (a) voting rights; (b) Assessments, Assessment liens, or subordination of such liens; ( c) reserves for maintenance, repair, or replacement of the Common Elements; (d) responsibility for maintenance and repair of any portion of the Community; (e) rights to use Common Elements; (f) reallocation of interests in Common Elements or rights to their use; (g) redefinition of any Unit boundaries; (h) convertibility of Units into Common Elements, Common Elements into Units; (i) expansion.or contraction of the Community or the addition, annexation, or withdrawal of property to or from the Community; 0) hazard or fidelity insurance requirements; (k) imposition of any restrictions on leasing of Units; (1) imposition of any restriction on the right of an Owner to sell or transfer a Unit; (m) establishment of self -management of the Community after professional management has been required by .HUD, FNMA, VA, FHLMC, or other similar agency or corporation or by an Eligible Mortgagee; (n) restoration or repair (after damage or partial condemnation) in a manner other than specified in the Declaration or the Survey Map; or (o) any provisions that are for the express benefit of holders of first Mortgages. 26.2.2 An amendment that creates or increases Development Rights or Special Declarant Rights, increases the number of Units, or the uses to which any Unit is restricted shall require the vote or agreement of the Owner of each Unit particularly affected, Declarant (if Declarant owns a Unit or has the rights to exercise any Development Rights or Special Declarant Rights) and Owners having at least 90% of the votes in the Association other than Declarant, and Project Mortgagee. 26.2.3 An amendment to section 5.2 of the Declaration requires the approval of the City of Renton. 26.2.4 All other amendments shall be adopted if consented to by 67% of Owners. Bethany Corner Declaration Page 56 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-57 of 67 Record Date:9/15/2021 11:35 AM King County, WA 26.2.5 for Eligible Mortgagees, consent is deemed granted if a refusal to consent in a record is not received by the Association within'sixty days after the Association delivers notice of the proposed amendment to the holder at an address for notice provided by the holder or mails the notice to the holder by certified mail, return receipt requested, at that address. If the holder has not provided an address for notice to the Association, the Association must provide notice to the address in the security interest of record. With respect to any action requiring the consent of a specified number or percentage of mortgagees, the consent of only eligible mortgagees holding a first lien security interest need be obtained and the percentage must be based upon the votes attributable to units with respect to which eligible mortgagees have an interest. 26.2.6 If the Community has received a project approval from the VA, the approval of the VA will be required for any amendment to the Declaration, Articles, Bylaws, or Survey Map adopted prior to the Transition Date. 26.3 Limitations on Amendments. No amendment may restrict, eliminate, or otherwise modify any Development Right or Special Declarant Right provided in this Declaration without the consent of Declarant and Project Mortgagee and no amendment may restrict, eliminate, or otherwise modify any right granted to Project Mortgagee without the consent of Project Mortgagee. 26.4 Preparation and Recordation. Once Owner approval is obtained in accordance with the requirements set forth in this Section 26.4, the Board has the authority to amend the Declaration as necessary or appropriate to evidence such action. Every amendment to this Declaration must be recorded in the Real Property Records of King County and is effective only upon recordation. An amendment must be indexed in the grantee's index in the name of the Community and the Association and in the grantor's index in the name of the parties executing the amendment. Every amendment to this Declaration must contain a cross-reference by recording number to this Declaration and the Survey Map, and to each previously recorded amendment thereto. Amendments to the Declaration required by the Act to be recorded by the Association shall be prepared, executed, recorded, and certified as properly adopted, on behalf of the Association by any officer of the Association designated for that purpose or, in the absence of designation, by the president or secretary of the Association. 26.5 Amendments Requiring 90% Owner Approval. Except to the extent expressly permitted or required by the Act, an amendment may not create or increase Special Declarant Rights, increase the number of Units, change the boundaries of any Unit, or change the Allocated Interests of a Unit without the consent of Owners to which at least 90% of the votes in the Association are allocated, including the consent of any Owner of a Unit, the boundaries of which or allocated interest of which is changed by the amendment. Amendments pertaining to Special Declarant Rights other than amendments creating or increasing Special Declarant Right are subject to Section 16.3. 26.6 Amendment by Declarant. 26.6.1 Corrections. Notwithstanding anything to the contrary in this Article 26, upon 30-days advance notice to Owners, Declarant may, without a vote of Bethany Corner Declaration Page 57 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-58 of 67 Record Date:9/15/2021 11:35 AM King County, WA Owners or approval by the Board, .Unilaterally adopt, execute, and record a corrective amendment or supplement to the Governing Documents to correct a mathematical mistake, an inconsistency, or a scrivener's error, or clarify an ambiguity in the Governing Documents with respect to an objectively verifiable fact including, without limitation, recalculating the undivided interest in the Common Elements, the liability for Common Expenses, or the number of votes in the Association appertaining to a Unit, within five years after the recordation or adoption of the Governing Document containing or creating the mistake, inconsistency, error, or ambiguity. Any such amendment or supplement may not materially reduce what the obligations of the Declarant would have been if the mistake, inconsistency, error, or ambiguity had not occurred. 26.6.2 Exercise of Special Declarant Rights. Notwithstanding anything to the contrary in this Section 16. Declarant may at any time amend this Declaration to reflect the exercise of, or the election not to exercise, a Special Declarant Right (including Declarant's Development Rights) which is reserved to Declarant under Article 11 or any other provision of this Declaration. Declarant's right to amend this Declaration under this Section 16.4.2 shall expire 5 years from the date of the initial filing of this Declaration. Declarant may execute and record any amendment and instrument described in this Section 26.8.1 or in Section 26.8.2 itself and need not otherwise comply with the requirements of this Section 26.8, provided, however, Declarant may require that the Association join in the execution of any such amendment or instrument and, in such event, an authorized member of the Board shall execute any such amendment or instrument within 10 days of Declarant's request. 26.7 Amendments by Association. Upon 30-days advance notice to Owners, the Association may, upon a vote of two-thirds of the Board, without a vote of the Owners, adopt, execute, and record an amendment to this Declaration for the following purposes: (a) to make the corrections or supplements to the Governing Documents described above to remove language and otherwise amend as necessary to effect the removal of language purporting to forbid or restrict the conveyance, encumbrance, occupancy, or lease to individuals belonging to legally protected classifications as described in RCW 64.90.405(11)(b); (c) to remove language and otherwise amend as necessary to effect the removal of language that purports to impose limitations on the power of the Association beyond the limit authorized under RCW 64.90.405(2)(u) to deal with Declarant that are more restrictive than the limitations imposed on the power of the Association to deal with other persons; and (d) to remove any other language and otherwise amend as necessary to effect the removal of language purporting to limit the rights of the Association or its Owners in direct conflict with the Act. 26.8 Amendments to Conform to Secondary Mortgage Market. No Owner shall withhold, delay, or condition consent to an amendment to this Declaration which is designed to conform this Declaration to the requirements of any Secondary Market Participant and does not violate any provision of the Act. Bethany Corner Declaration Page 58 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-59 of 67 Record Date:9/15/2021 11:35 AM King County, WA 26.9 Time for Challenges to Amendments. In the absence of fraud, no action to challenge the validity of an amendment adopted by Association may be brought more than one year after the date the amendment is recorded. ARTICLE 27: TERMINATION OF COMMUNITY 27.1 Action Required. Except as provided in Article 22 and Article 23, the case of a taking of all units by Condemnation, or in the case of a Judicial termination pursuant to RCW 64.90.325, the Community may be terminated only by agreement of Owners of Units to which at least 80% of the votes in the Association are allocated and with the consent of Eligible Mortgagees of Units to which at least 51 % of the votes of Units subject to Mortgages held by Eligible Mortgagees are allocated and in accordance with the Act. An Eligible Mortgagee who receives a written request to consent to termination who does not deliver or post to the requesting party a negative response within 30 days shall be deemed to have consented to such request, provided the request was delivered by certified or registered mail, return receipt requested. 27.2 The Act Governs. The provisions of the Act relating to termination, 64.90.290 as it may be amended, shall govern the termination of the Community, including, but not limited to, the disposition of the real property in the Community and the distribution of proceeds from the sale of that real property. ARTICLE 28: NOTICES 28.1 Form and Delivery of Notice. Notice to the Association, Board, or any Owner or occupant of a Unit must be provided in the form of a record. 28.2 Tangible Medium. 28:2.1 Notice provided in a tangible medium may be transmitted by mail, private carrier, or personal delivery; telegraph or teletype; or telephone, wire, or wireless equipment that transmits a facsimile of the notice. 28.2.2 Notice in a tangible medium to an Association may be addressed to the Association's registered agent at its registered office, to the Association at its principal office shown in its most recent annual report or provided by notice to the Unit Owners, or to the president or secretary of the Association at the address shown in the Association's most recent annual report'or provided by notice to the Unit Owners. ' 28.2.3 Notice in a tangible medium to a Unit Owner or occupant must be addressed to the Unit address unless the Unit Owner or occupant has requested, in a record delivered to the Association, that notices be sent to an alternate address or by other method allowed by the governing documents. 28.3 Electronic Transmission. Notice may be provided in an electronic transmission as follows: Bethany Corner Declaration Page 59 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-60 of 67 Record Date:9/15/2021 11:35 AM King County, WA 28.3.1 Notice to Unit Owners or Board members by electronic transmission is effective only upon Unit Owners and Board members who have consented, in the form of a record, to receive electronically transmitted notices and have designated in the consent the address, location, or system to which such notices may be electronically transmitted, provided that such notice otherwise complies with any other requirements of the Declaration and applicable law. The Association shall retain the records which indicate an Owner's consent to receive Notice electronically, and shall maintain a list of electronic addresses to be used for such Notice. 28.3.2 Notice to Unit Owners or Board members includes material that the law or the governing documents requires or permits to accompany the notice. 28.3.3 A Unit Owner or Board member who has consented to receipt of electronically transmitted notices may revoke this consent by delivering a revocation to the Association in the form of a record. 28.3.4 The consent of any Unit Owner or Board member is revoked if: The Association is unable to electronically transmit two consecutive notices given by the Association in accordance with the consent, and this inability becomes known to the secretary of the Association or any other person responsible.for giving the notice. The inadvertent failure by the Association to treat this inability as a revocation does not invalidate any meeting or other action. 28.3.5 Notice to Unit Owners or Board members who have consented to receipt of electronically transmitted notices may be provided by posting the notice on an electronic network and delivering to the Unit Owner or Board member a separate record of the posting, together with comprehensible instructions regarding how to obtain access to the posting on the electronic network. 28.3.6 Notice to the Association in an electronic transmission is effective only if the Association has designated in a record an address, location, or system to which the notices may be electronically transmitted. . 28.3.7 Notice may be given by any other method reasonably calculated to provide notice to the recipient. 28.4 When Effective. Notice is effective as follows: 28.4.1 Notice provided in a tangible medium is effective as of the date of hand delivery, deposit with the carrier, or when sent by fax. 28.4.2 Notice provided in an electronic transmission is effective as of the date it: Bethany Corner Declaration Page 60 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-61 of 67 Record Date:9/15/2021 11:35 AM King County, WA (i) Is electronically transmitted to an address, location, or system designated by the recipient for that purpose; or (ii) Has been posted on an electronic network and a separate record of the posting has been sent to the recipient containing instructions regarding how to obtain access to the posting on the electronic network. 28.5 Good Faith. The ineffectiveness of a good -faith effort to deliver notice by an authorized means does not invalidate action taken at or without a meeting. 28.6 Act Prevails. If the Act prescribes different or additional notice requirements for particular circumstances, those requirements govern. 28.7 Notices to Eligible Mortgagees. An Eligible Mortgagee is a Mortgagee that has filed with the secretary of the Board a written request that it be given copies of the notices listed below and shall also mean the Project Mortgagees with respect to Units owned by Declarant upon which it has a Mortgage. The request must state the name and address of the Eligible Mortgagee and the Identifying Number or address of the Unit on which it has (or insures or guarantees) a Mortgage. Until such time thereafter that the Eligible Mortgagee withdraws the request or the Mortgage held, insured, or guaranteed by the Eligible Mortgagee is satisfied, the Board shall send to the Eligible Mortgagee timely written notice of (a) any proposed amendment of this Declaration or Survey Map effecting a change in (1) the boundaries of any Unit and (2) the exclusive easement rights, if any, appertaining to any Unit, (3) the interest in the Common Elements or the liability for Common Expenses of any Unit, ( 4) the number of votes in the Association allocated to any Unit, or (5) the purposes to which a Unit or the Common Elements are restricted; (b) any proposed termination of plat Community status, transfer or mortgage of any part of the Common Elements, or termination of professional management of the Community; (c) any condemnation loss or casualty loss that affects a material portion of the Community or that affects any Unit on which an Eligible Mortgagee has a first Mortgage; (d) any delinquency that has continued for 60 days in the payment of Assessments or charges owed by an Owner of a Unit on which an Eligible Mortgagee had a Mortgage; (e) any lapse, cancellation, or material modification of any insurance policy maintained by the Association pursuant to Article 21; (f) any proposed action that would require the consent of a specified percentage of Eligible Mortgagees pursuant to this Declaration, the Articles or Bylaws; and (g) any proposed special Assessment or supplemental budget. ARTICLE 29: MORTGAGEE PROTECTIONS. 29.1 Rights of Mortgagees to Receive Certain Notices. Mortgagees have the right to receive copies of notices as provided above in Article 28. 29.2 First Mortgagee's Rights Confirmed. Confirmation of the rights of the First Mortgagee of a Unit pursuant to its Mortgage in the case of payments to the Unit Owner of insurance proceeds as provided in Article 21, Article 22 or a condemnation Bethany Corner Declaration Page 61 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-62 of 67 Record Date:9/15/2021 11:35 AM King County, WA award for losses to, or a taking of, such Owner's Unit and/or Common Elements is set forth in Article 23. 29.3 Limitation of Ability to Sell/Right of First Refusal. There is no right of first refusal reserved in this Declaration in connection with Conveyance of a Unit. 29.4 Actions Requiring Mortgagee Consent. Notwithstanding anything to the contrary herein, with respect to any action requiring the consent of a specified number or percentage of Mortgagees under this Declaration, the consent of only Eligible Mortgagees holding a First Mortgage need be obtained and the percentage must be based upon the votes attributable to Units with respect to which Eligible Mortgagees have an interest. Actions which require the consent of certain Mortgagees under this Declaration include, without limitation, actions described in the following Sections of this Declaration: (i) Article 26 (pertaining to certain amendments which may have a material adverse impact on Mortgagees), and (ii) Article 27 (pertaining to any action to terminate the legal status of the Community after substantial destruction or condemnation). 29.5 Deemed Consent by Mortgagee. A Mortgagee's consent may be deemed to have been given as provided in Section 26.7. 29.6 Other Rights of Mortgagees. Mortgagees have access to the records of the Association in accordance with Section 13.7. Lien rights of the Association and Mortgagees are set forth in Article 17. 29.7 Limitation. Notwithstanding anything to the contrary herein, -no requirement under this Declaration for approval by any Mortgagee, or of any lender who has extended credit to the Association, of specific actions of Owners or the Association as a condition to the effectiveness of such actions may operate to: (i) deny or delegate control over the general administrative affairs of the Association by Owners or the Board; (ii) prevent the Association or the Board from commencing, intervening in, or settling any litigation or proceeding; or (iii) prevent any insurance trustee or the - Association from receiving and distributing any insurance proceeds except pursuant to RCW 64.90.470 and Section 21.11 of this Declaration. ARTICLE 30: SEVERABILITY The provisions of this Declaration shall be independent and severable, and the unenforceability of any one provision shall not affect the enforceability of any other provision, if the remaining provision or provisions comply with the Act. ARTICLE 31: INTERPRETATIONS; CONSTRUCTION; VALIDITY 31.1 Liberal Construction; Consistent with Act. The provisions of this Declaration shall be liberally construed to effectuate its purpose of creating a uniform plan for the development and operation of this Community under the provisions of Washington law. Insofar as it affects this Declaration and the Community, the provisions of the Act under which this Declaration is operative shall be liberally construed to effectuate the intent of this Declaration. The terms used herein are intended to have the same meaning given such terms in the Act unless the context clearly requires otherwise or to so define the terms would produce an illegal or improper result. Bethany Corner Declaration Page 62 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-63 of 67 Record Date:9/15/2021 11:35 AM King County, WA 31.2 Percentage of Owners or Mortgagees. For purposes of determining the percentage of Owners or Mortgagees, or percentage of voting power, for approving a proposed decision or course of action in cases where an Owner owns, or a Mortgagee holds Mortgages on, more than one Unit, such Owner shall be deemed a separate Owner for each such Unit so owned and such Mortgagee shall be deemed a separate Mortgagee for each such Mortgage so held. Where specified percentage of Eligible Mortgagees is required by this Declaration, it refers to the following fraction: The numerator shall be the number of votes allocated to Units encumbered by Eligible Mortgagees which approve the specified action (explicitly or deemed consent pursuant to Section 16.2.4); and the denominator shall be the total number of all votes allocated to Units which are subject to First Mortgages held by Eligible Mortgagees. 31.3 Captions. Captions given to the various sections and subsections herein are for convenience only and are not intended to modify or affect the meaning of any of substantive provisions of this Declaration. 31.4 Miscellaneous. 31.4.1 The rule against perpetuities may not be applied to defeat any provision of this Declaration, Bylaws, or duly adopted Rules of the Association. 31.4.2 In the event of a conflict between the provisions of this Declaration and the Organizational Documents, this Declaration shall control, except to the extent this Declaration is inconsistent with the Act or other applicable law, in which case the relevant provision of the Act or other applicable law shall control. 31.4.3 The creation of this Community shall not be impaired, and title to a Unit and any Common Elements shall not be rendered unmarketable or - otherwise affected, by reason of an insignificant failure of this Declaration, the Survey Map, or any other Governing Document, or any amendment to a Governing Document, to comply with the Act. ARTICLE 32: INFLATIONARY INCREASE IN DOLLAR LIMITS. Except as may be provided otherwise in the Act, any dollar amounts specified in this Declaration in connection with any proposed action or decision of the Board or Association, or any cap on an Owner's liability, if applicable, shall be increased proportionately by the increase in the consumer price index for the City of Seattle, Washington for All Urban Consumers ("Index"), prepared by the United States Department of Labor over the base Index for January 1 of the calendar year following the year in which this Declaration was recorded, to adjust for any deflation .in the value of the dollar. In the event the Index is discontinued, the Board shall select a comparable index for this purpose. ARTICLE 33: EFFECTIVE DATE This Declaration shall take effect upon recording. Bethany Corner Declaration Page 63 of 67 Instrument Number: 20210915000852 Document:COV Rec: S539.00 Page-64 of 67 Record Date:9/15/2021 11:35 AM King County, WA ARTICLE 34: REFERENCE TO SURVEY MAP The Survey Maps were filed with the Recorder of King County, Washington, simultaneously with the recording of this Declaration. ARTICLE 35: ASSIGNMENT BY DECLARANT Declarant reserves the right to assign, transfer, sell, lease, or rent all or a portion of the property then owned by it and reserves the right to assign all or any of its rights, duties, and obligations created under this Declaration. IN WITNESS WHEREOF, Declarant herein, hereby executes this instrument under its seal by and through its duly authorized officers, this 4 day of 2021. .01 DECLARANT: BONA FID PROP IES 2, LLC, a Washi n limi d ability company by: Na Dian oug erty Its: Manager STATE OF WASHINGTON COUNTY OF KING On this day personally appeared before me Diane Dougherty, to me known to be the Manager of BONA FIDE PROPERTIES 2, LLC, the Washington limited liability company that executed the foregoing instrument, and acknowledged such instrument to be the free and voluntary act and deed of such limited liability company, for the uses and purposes therein mentioned, and on oath stated that he was duly authorized to execute such instrument. GIVEN UNDER MY HAND AND OFFICIAL SEAL this day of Ax4 c1ST , 2021. Printed Namey�,� �A 2lHARW" NOTARY PUBLIC in and for the State of Washington Residing at JJEg�;CZ 1SuAN r) My Commission Expires: 4uNE 12.1 2c�� Notary Public State of Washington VIDHYA BHARATH COMMISSION# 20167929 MY COMMISSION EXPIRES June 12, 2024 Bethany Corner Declaration Page 64 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-65 of 67 Record Date:9/15/2021 11:35 AM King County, WA EXHIBIT A — Legal Description TO DECLARATION FOR BETHANY CORNER The following described real property in King, Washington: Parcel A: Lot 11, Block 7, Aker's Farms No. 6, according to the Plat thereof recorded in Volume 42 of Plats, Page 15, records of King County, Washington. Situate in the County of King, State of Washington. Parcel B: Lot 12, Block 7, Aker's Farms No. 6 per Plat, Volume 42 of Plats, Page 15, King County, Washington. Situate in the County of King, State of Washington. Bethany Corner Declaration Page 65 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-66 of 67 Record Date:9/15/2021 11:35 AM King County, WA EXHIBIT B — Allocated Interests, etc. TO DECLARATION FOR BETHANY CORNER UNIT DATA, ALLOCATED INTERESTS, PARKING AND STORAGE 1. Name of Community and Association: The name of the Community created by this Declaration and the Survey Map is Bethany Corner. The name of the Association formed to administer the Community is the Bethany Corner Homeowners Association. 2. Description of Common Elements Allocated to this Community: 2.1 Common Elements: Common Elements are the areas of the Community outside the boundaries of Units. Common Elements in this Community are described in Article 7. 3. Parking. 3.1 Parking for Units: When constructed, each Unit will include one enclosed parking space in a garage, and a driveway. 3.2 Parking and Storage in Common Elements: There are no Common Element storage lockers in this Community and no Common Element parking in this Community. 4. Access to Public Streets: Every Unit has vehicular and pedestrian access to public streets via the access drive and sidewalk and walkways. 5. General Description and Address of Units. There are 9 Units in this Community on nine lots, all of which are for residential use. All of the Units are located within the .Community. Each Unit contains a main house, and an ADU. Lot No. House Number Street Name Square Footage 1 1.0990 and 10992 SE. 165th Street 7,119 2 10980 and 10982 SE. 165th Street 5,948 3 10964 and 10968 SE. 165th Street 5,948 4 10956 and 10958 SE. 165th Street 5,948 5 10942 and 10944 SE. 165th Street 6,734 6 10979 and 10981 SE. 165th Street 6,447 7 10969 and 10971 SE. 165th Street 5,889 8 10955 and 10957 SE. 165th Street 6,148 9 10945 and 10947 SE. 165th Street 6,148 Notes:1. Unit Square Footage is calculated by Declarants Surveyor and should be verified by purchaser. 2. Each Unit's allocated interest, shown below is calculated as provided in Section 6.5 of the Declaration. Bethany Corner Declaration Page 66 of 67 Instrument Number: 20210915000852 Document:COV Rec: $539.00 Page-67 of 67 Record Date:9/15/2021 11:35 AM King County, WA 41 6. Allocated Interests of Units. Lot No. Percentage Interest 1 1/9 2 1/9 3 1/9 4 1/9 5 1/9 6 1/9 7 1/9 8 1/9 9 1/9 Bethany Corner Declaration Page 67 of 67