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HomeMy WebLinkAboutRC 20220805000420 • IIlI1I Ill I 1II I liii IIIIIIIII•'I l l 20220805000420 COVENANT Rec: $234.50 8/5'2022 10:07 AM KING COUNTY,WA WHEN RECORDED, RETURN TO: CITY OF RENTON City Clerk Division 1055 South Grady Way, Suite 728 Renton, WA 98057 Document Title Declaration of Covenants,Conditions, and Restrictions for River Trail at Elliott Farm Reference Number of Related Document 242�( 14N (Map) Grantor Tri Point Homes Washington, Inc., a Washington corporation Grantee River Trail at Elliott Farm,a plat community River Trail at Elliott Farm Homeowners Association,a Washington nonprofit corporation Tri Point Homes Washington, Inc. Abbreviated Legal Description A portion of the NW 1/4 of the SE 1/4 and the SW 1/4 of the NE 1/4 Section 22,Township 23 N., Range 5 E., W.M., Renton, King County, Washington Tax Parcel Numbers 2223059004 DECLARATION OF COVENANTS,CONDITIONS,AND RESTRICTIONS FOR RIVER TRAIL AT ELLIOTT FARM This Declaration of Covenants, Conditions, and Restrictions for River Trail at Elliott Farm ("Declaration") is made this day of ,20_, by Tri Point Homes Washington, Inc., a Washington corporation ("Declarant"), as the owner of certain real property situated in King County, State of Washington, as such property is more specifically described on Exhibit A, which is attached hereto and incorporated herein by this reference("Real Property"). RECITALS Declarant desires to develop the Real Property as a townhome plat community to be known as River Trail at Elliott Farm ("Plat Community"). Declarant also desires to create common elements and facilities for the benefit of the Plat Community and to provide for the preservation of the property values in the Plat Community. Where a term is defined in Chapter 64.90 of the Revised Coded of Washington ("RCW"), known as the Washington Uniform Common Interest Ownership Act ("Act"), and is not otherwise defined herein, such term will have the meaning given to it by the Act. This Declaration establishes a plan for the private ownership of Lots (defined below) and the buildings constructed thereon, for the dedication of certain areas to the public, and for the beneficial ownership through a nonprofit corporation of certain other land and related easements, hereafter defined and referred to as the "Common Elements." The nonprofit corporation shall be delegated and assigned the duties and powers of maintaining and administering the Common Elements, administering and enforcing these covenants, conditions, and restrictions, and collecting and disbursing the assessments and charges hereinafter created. NOW, THEREFORE, Declarant hereby covenants, agrees, and declares that all of the Real Property, as defined herein, and the buildings and structures hereafter constructed thereon are, and will be, held, sold, and conveyed subject to and burdened by the following covenants, conditions, restrictions, and easements, all of which are for the purpose of enhancing and protecting the value, desirability, and attractiveness of the Plat Community for the benefit of the Lot Owners thereof, their heirs, successors, grantees, and assigns. All provisions of this Declaration and the Act, shall be binding upon all parties having or acquiring any right, title, or interest in the Real Property or any part thereof, and shall inure to the benefit of the Lot Owners thereof and to the benefit of the Association and are intended to be and shall in all respects be regarded as covenants running with the land. ARTICLE 1.DEFINITIONS Section 1.1 "ACC"means the Architectural Control Committee described in Article 4. Section 1.2 "Act" means the Washington Uniform Common Interest Ownership Act Chapter 64.90 of the Revised Coded of Washington("RCW"). Section 1.2 "Association" means the River Trail at Elliot Farm Homeowners Association, a Washington nonprofit corporation,and its successors and assigns. Section 1.3 "Association Action" means a written corporate action of the Association in the form of either a bylaw or resolution duly passed by either the Board or the Lot Owners. {04408737.DOC;5 } -2 - Section 1.4 "Board" or "Board of Directors" means the board of directors of the Association with primary authority to manage the affairs of the Association. Section 1.5 "Common Elements" means real estate other than a Lot within the Plat Community owned and/or maintained by the Association. As of the date of this Declaration, the Common Elements consist of: all Common Elements depicted on the Map, including without limitation,the roads, sidewalks and recreational areas, all as identified and/or illustrated on the Map, recorded in the real property records of King County. Section 1.6 "Common Expenses" means any expense of the Association, including allocations to reserves,as provided for in the Act and this Declaration. Section 1.7 "Declarant"means the entity described on the first page of this Declaration and its respective successors and assigns. Nothing contained herein shall be deemed or construed by the Association or by any third party, to create the relationship of principal and agent, or a partnership, or a joint venture,or any association between or among any of the signatories hereto. Section 1.8 "Declarant Control Period"means the period of time from the date of recording of this Declaration until the earlier of: (a) sixty (60)days after conveyance of seventy-five percent(75%) of the Lots that may be created to Lot Owners other than Declarant; (b) two (2) years after the last conveyance of a Lot, except to a dealer; (c) two (2) years after any right to add new Lots was last exercised; or(d)the day Declarant, after giving notice in a record to Lot Owners, records an amendment to this Declaration voluntarily surrendering all rights to appoint and remove officers and Board members. A partial delegation of authority by the Declarant of any of its management duties described in the Declaration shall not terminate the Declarant Control Period. Section 1.9 "Declaration" means this instrument, as the same may be supplemented or amended from time to time. Section 1.10 "Governing Documents" means this Declaration, the Map, the articles of incorporation, bylaws and rules and regulations of the Association, or any other written instrument by which the Association has the authority to exercise any of the powers to manage, maintain, or otherwise affect the Plat Community,as any of the foregoing may be amended from time to time. Section 1.11 "Lot" means any legally segmented and alienable portion of the Real Property created through subdivision or any other legal process for dividing land and subjected to this Declaration by an appropriate recording, with the exception of Tracts and Common Elements. As indicated on the Map, the Plat Community shall include forty-five (45) Lots. The term "Lot" in this Declaration is intended to have the same meaning as the term"unit"as defined in the Act(Ch. 64.90 RCW); in the event of a conflict between the two definitions,the Act shall control. Section 1.12 "Lot Owner" or "Owner" means the record owner (whether one or more persons or entities)of a fee interest in any Lot, including the Declarant but excluding Mortgagees or other persons or entities having such interest merely as security for the performance of any obligation. Purchasers or assignees under recorded real estate contracts shall be deemed Lot Owners as against their respective sellers or assignors. Section 1.13 "Map" means the final plat of River Trail at Elliott Farm recorded under King County recording no.,ea.05co '/q {04408737.DOC;5} - 3 - Section 1.14 "Mortgagee"means the holder of a security interest on a Section 1.15 "Party Wall" means any of the walls built on the boundary lines separating any of the Lots. When used in reference to particular Lots, it refers to the Party Wall on the boundary line separating those Lots. The term "Party Wall" includes all components of and within that wall including, but not limited to, framing,joists, insulation, soundproofing, pipes, lines, wires, conduits, other utility infrastructure, and other components as originally constructed; all components below that wall including, but not limited to,the footings and other components as originally constructed and the supporting ground; all components above that wall including, but not limited to, the rafters, the roof, the parapet cap, and other components as originally constructed; and all components on the sides or exteriors of that wall including, but not limited to,siding,trim,and other components as originally constructed. Section 1.16 "Party Wall Adjoining Lots" means each set of Lots whose homes share a Party Wall. When used in reference to a particular Owner, it refers to the Party Wall Adjoining Lot owned by that Owner. If a Lot has two or more Party Walls, the term "Party Wall Adjoining Lots"refers to the two Lots that share a particular Party Wall. Section 1.17 "Real Property" means that certain real property, which is legally described on Exhibit A attached hereto, and such additions thereto as may hereafter be brought within the terms and conditions hereof by an appropriate recording. Section 1.18 "Reserve Account"has the meaning set forth in Section 3.12 of this Declaration. Section 1.19 "Reserve Component" means a physical component of the Plat Community which the Association is obligated to maintain,repair or replace,which has an estimated useful life of less than thirty (30) years, and for which the cost of such maintenance, repair or replacement is infrequent, significant and impractical to include in an annual budget. Section 1.20 "Reserve Study Professional" means an independent person who is suitably qualified by knowledge, skill, experience, training, or education to prepare a reserve study in accordance with the Act. Section 1.21 "Significant Assets" means that the current replacement value of the major Reserve Components is seventy-five percent (75%) or more of the gross budget of the Association, excluding the Association's Reserve Account funds. Section 1.22 "Structure" includes any home, building, fence, wall, driveway, walkway,patio, garage, storage shed, carport, mailbox, basketball hoop, play equipment, climbing apparatus, swimming pool,rockery,dog run or the like. Section 1.23 "Tract" means any legally segmented and alienable portion of the Real Property created through subdivision or any other legal process for dividing land and subjected to this Declaration by an appropriate recording, with the exception of Lots and Common Elements. ARTICLE 2.RIVER TRAIL AT ELLIOT FARM HOMEOWNERS ASSOCIATION Section 2.1 Description of Association. The Association is a nonprofit corporation organized and existing under the laws of the State of Washington charged with the duties and vested with {04408737.DOC;5} -4 - • the powers prescribed by law and set forth in the Governing Documents, as they may be amended from time to time; provided, however, that no Governing Documents of the Association other than this Declaration shall for any reason be amended or otherwise changed or interpreted so as to be inconsistent with this Declaration. The Association shall have a perpetual existence. Upon dissolution or final winding up of the Association entity under the laws of the State of Washington, all of its assets remaining after payment to creditors will be distributed or sold, and the sales proceeds distributed, to the members of the Association entity in accordance with the Articles of Incorporation, Bylaws, and provisions of RCW 24.03 and the Act. In the case of any conflict between the provisions of RCW 24.03 and the Act, the Act shall control. The Lot Owners are responsible for providing that the Association continues to be a functioning legal entity. Section 2.2 Association Board. During the Declarant Control Period, the Declarant, or persons designated by Declarant, shall have the power to appoint or remove any member of the Board. Notwithstanding the foregoing, no later than sixty (60) days after conveyance of twenty-five percent (25%) of the Lots that may be created to Lot Owners other than Declarant, at least one (1) member and not less than twenty-five percent(25%)of the members of the Board must be elected by Lot Owners other than Declarant.Not later than sixty(60)days after conveyance of fifty percent(50%)of the Lots that may be created to Lot Owners other than Declarant, not less than thirty-three and one-third percent (33.33%) of the members of the Board must be elected by Lot Owners other than Declarant. Until such members are elected and take office, the existing Board may continue to act on behalf of the Association. Within thirty(30)days after the termination of the Declarant Control Period,the Board must schedule a transition meeting and provide notice to the Lot Owners in accordance with RCW 64.90.445(1)(c). At the transition meeting, the Board elected by the Lot Owners must be elected in accordance with RCW 64.90.410(2). Within thirty(30)days after the transition meeting, Declarant shall deliver the materials required by RCW 64.90.420 to the Association. Within sixty (60) days after the transition meeting, the Board shall retain the services of a certified public accountant to audit the records of the Association as of the date of the transition meeting in accordance with generally accepted accounting standards, unless a majority of the members elects to waive such audit. Section 2.3 Votes Appurtenant to Lots. Every Lot Owner shall be a member of the Association. The Lot Owner(s) of a Lot shall be entitled to cast one (1) vote in the Association for each Lot owned. A vote shall be appurtenant to and held and owned in the same manner as the beneficial fee interest in the Lot to which it relates. A vote shall not be separated from ownership of the Lot. Lot Owner voting shall be governed by RCW 64.90.455,as it may be amended. Section 2.4 Lot Owner's Compliance.By acceptance of a deed to a Lot, recording of a real estate contract conveying title to a Lot, or any other means of acquisition of an ownership interest,the Lot Owner thereof covenants and agrees, on behalf of himself and his or her heirs, successors, and assigns, to observe and comply with the terms of the Map, this Declaration, the Governing Documents of the Association, and all rules and regulations duly promulgated pursuant to Association Action. Section 2.5 Bylaws, Rules and Regulations. The Board, on behalf of the Association, shall have the power to adopt,modify, and amend rules and regulations governing the use of the Real Property, provided that such rules and regulations shall not be inconsistent with this Declaration and during the Declarant Control Period, must be approved in writing by the Declarant. The rules and regulations shall apply uniformly to all Lot Owners, except as specifically provided herein. The Board shall have the power to enforce the rules and regulations on behalf of the Association and may prescribe penalties for the violation of such rules and regulations, including, but not limited to, suspension of the right to use the Common Elements or portions thereof. The Board must,before adopting, amending or repealing any rule, {04408737.DOC;5} -5 - give all Lot Owners notice of: (a) its intention to adopt, amend or repeal a rule an provide the text of the rule or the proposed change; and (b) a date on which the Board will act o the proposed rule or amendment after considering comments from Lot Owners. Following adoption, a endment or repeal of a rule, the Association must give notice to the Lot Owners of its action and provide a copy of any new or revised rule. A copy of the rules and regulations then in force shall be retained by the Secretary of the Association. The Declarant, on behalf of the Board, may adopt the initial Bylaws and rules and regulations of the Association. Section 2.6 Right of Entry for Inspections, Maintenance, Repairs, Emergencies or Improvements. The Association, acting through its agents and employees, shall have the right to have access to each Lot from time to time as may reasonably be necessary for inspection, maintenance, repair or replacement or improvement of any of the Common Elements accessible therefrom, or for making repairs or remedying conditions, including removing dangerous structures, on a Lot as deemed necessary by the Board, in the Board's reasonable discretion, to prevent damage to the Common Elements or to other Lots or improvements thereon, or for any emergency situations. The cost of work necessary to remedy such conditions caused by or refused to be corrected by the Lot Owner shall be a special assessment on such Lot Owner and his or her Lot only. The Association's right provided in this section shall be exercisable after seven (7) days' notice to the Lot Owner and an opportunity to be heard if requested by the Lot Owner, and approval by a two-thirds (2/3) majority vote by the Board. The foregoing notice shall not be required in the event of an emergency situation, as determined by the Board in its reasonable discretion. Section 2.7 Implied Rights. The Association may exercise any right or privilege given to it expressly by this Declaration or the bylaws or which may be reasonably implied from, or reasonably necessary to effectuate,any such right or privilege. Section 2.8 Special Declarant Rights. Subject to the Act, Declarant shall have the right to do the following for a period of ten (10) years following the sale of the first Lot within the Plat Community by Declarant: (i) Complete any improvements indicated on the Map or described in this Declaration or the public offering statement pursuant to RCW 64.90.610(1)(h); (ii)Exercise any Development Right; (iii) Maintain sales offices, management offices, signs advertising the Plat Community, and models until Declarant no longer owns any Lots in the Plat Community or no longer has the right to create a Lot in the Plat Community; (iv) Use easements through the Common Elements for the purpose of making improvements within the Plat Community or within real property that may be added to the Plat Community; (v)Make the Plat Community subject to a master association; (vi) Merge or consolidate a common interest community with another common interest community of the same form of ownership; (vii) Appoint or remove any officer or board member of the association or any master {04408737.DOC;5} - 6- I association or to veto or approve a proposed action of any board or association; (viii) Control any construction, design review, or aesthetic standards committee or process until Declarant no longer owns any Lots; (ix) Attend meetings of the Lot Owners and, except during an executive session, the Board; and (x) Have access to the records of the Association to the same extent as a Lot Owner (collectively,the"Special Declarant Rights"). Except as otherwise provided in this Declaration, all Special Declarant Rights shall expire ten (10) years after the conveyance of the first Lot in the Plat Community; provided, that Declarant may voluntarily terminate any and all such rights at any time by recording an amendment to the Declaration, which amendment specifies which rights are thereby terminated. Section 2.9 Association Property. The Association, through action of its Board, may acquire,hold,and dispose of tangible and intangible personal property and real property. ARTICLE 3.ASSOCIATION BUDGET,ASSESSMENTS,AND LIENS Section 3.1 Lot Owner's Covenants to Pay Assessments. By acquisition of any ownership interest in a Lot,the Lot Owner thereof covenants and agrees thereby, on behalf of himself or herself and his or her heirs, successors, and assigns, to pay the Association, in advance, all general and special assessments levied as provided herein. Assessments for Common Expenses and those specially allocated expenses must commence on all Lots that have been created upon the conveyance of the first Lot in the Plat Community; however, Declarant may delay commencement of assessments for some or all Common Expenses or specially allocated expenses, in which event Declarant must pay all of the Common Expenses or specially allocated expenses that have been delayed. Section 3.2 Specially Allocated Expenses. Pursuant to RCW 64.90.480, the Association shall specially allocate certain expenses as follows: (i) Expenses benefiting fewer than all of the Lots, or the Lot Owners of such benefited Lots exclusively,must be assessed against the Lots benefited,with the expenses allocated evenly between the benefited Lots. (ii)Assessments to pay a judgment against the Association may be made only against the Lots in the Plat Community at the time the judgment was entered, in proportion to their Common Expense liabilities. (iii) To the extent that any expense of the Association is caused by the negligence, gross negligence or willful misconduct of any Lot Owner or that Owner's tenant, guest, invitee,or occupant,the Association may assess that expense against the Owner's Lot after notice and an opportunity to be heard, to the extent of the Association's deductible and any expenses not covered under an insurance policy issued to the Association. (iv) In the event of a loss or damage to a Lot that would be covered by the Association's property insurance policy, excluding policies for earthquake, flood, or similar losses that have higher than {04408737.DOC;5} - 7- standard deductibles, but that is within the deductible under that policy, the Association may assess the amount of the loss up to the deductible against that Lot. This subsection does not prevent a Lot 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. Section 3.3 Association Budget. The Association shall prepare, or cause the preparation of, an operating budget for the Association at least annually, in accordance with generally accepted accounting principles. Declarant shall adopt the initial operating budget for the Association. The operating budget shall set forth all sums required by the Association, as estimated by the Association, to meet its annual costs and expenses, including, but not limited to, all management and administration costs, operating and maintenance expenses of the Common Elements, and services furnished to or in connection with the Common Elements, including the amount of all taxes and assessments levied against, and the cost of liability, property and other insurance on, the Common Elements, and including charges for any services furnished by or to the Association; the cost of utilities and other services; and the cost of funding all reserves established by the Association. The funds required to meet the Association's annual expenses shall be raised from a general assessment against each Lot Owner as provided hereafter. After adoption of the operating budget, the Association may revise the operating budget at any time and from time to time, in accordance with the procedures set forth in Subsection 3.3(a) below, as it deems necessary or advisable in order to take into account and defray additional costs and expenses of the Association. (a) Adoption of Budget. Prior to adopting the proposed regular budget, the Board shall submit the proposed Common Element Budget to the Common Element Committee in accordance with Section 8.3 below. Within thirty (30) days after adoption by the Board of any proposed regular or special budget of the Association, the Board shall provide a copy of the proposed budget to all Lot Owners and set a date for a meeting of the Lot Owners to consider ratification of the budget not less than fourteen (14) nor more than fifty (50) days after providing the budget. Unless at that meeting the Lot Owners to which a majority of the votes in the Association are allocated reject the budget, in person or by proxy, the budget and the assessments against the Lots included in the budget are 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 Lot Owners shall be continued until such time as the Owners ratify a subsequent budget proposed by the Board. (b) Budget Summary. As part of the summary of the budget provided to all Lot Owners,the Board shall disclose to the Lot Owners: (i) The projected income to the Association by category; (ii) The projected Common Expenses and those specially allocated expenses that are subject to being budgeted,both by category; (iii) The amount of assessments per Lot and the date the assessments are due; (iv) The current amount of regular assessments budgeted for contribution to the Reserve Account; (v) A statement of whether the Association has a Reserve Study that meets the requirements of RCW 64.90.550 and, if so, the extent to which the budget meets or deviates from the recommendations of the reserve study;and {04408737.DOC;5} - 8- (vi) The current deficiency or surplus in reserve funding expressed on a per Lot basis. Section 3.4 Levy of General Assessment. In order to meet the costs and expenses projected in its operating budget, the Association shall determine and levy in advance on every Lot a general assessment, which shall become effective only after the Board follows the procedure for ratification of a budget described in Subsection 3.3(a) and the Lot Owners do not reject the proposed assessment. The amount of each Lot's general assessment shall be the amount of the Association's operating budget divided by the sum of the number of Lots. The omission by the Association, before the expiration of any assessment period, to fix the amount of the general assessment hereunder for that or the next period, shall not be deemed a waiver or modification in any respect of the provisions of this article or a release by any Lot Owner from the obligation to pay the general assessment, or any installment thereof, for that or any subsequent assessment period, but the general assessment fixed for the preceding period shall continue until a new assessment is fixed. Upon any revision by the Association of the operating budget during the assessment period for which such budget was prepared, the Association shall, if necessary, revise the general assessment levied against Lots and give notice to each Lot Owner in accordance with Subsection 3.3(a). Section 3.5 Payment of Assessment. Installments of general assessments may be collected on a monthly, quarterly, semi-annual, or annual basis, as determined by the Board and ratified by the Lot Owners in accordance with Subsection 3.3(a). Unless the Board otherwise provides, one-twelfth(1/12)of the General Assessment shall be due in advance on the first day of each calendar month. Any Lot Owner may prepay one or more installments on any assessment levied by the Association without penalty. Section 3.6 Nondiscriminatory Assessment. Except as otherwise specifically provided herein, no assessment shall be made at any time which may unreasonably discriminate against any particular Lot Owner or group of Owners in favor of other Owners. Section 3.7 Commencement of Assessments. Liability of a Lot Owner for assessments shall commence on the date upon which any instrument of transfer to such Lot Owner becomes operative(such as the date of a deed or the date of a recorded real estate contract for the sale of any Lot)or, if earlier,the commencement date of Lot Owner's occupancy of such Lot. Upon the initial closing on any Lot from Declarant, the buyer thereof shall pay a one-time assessment in the amount of Five Hundred Dollars ($500.00). This amount shall be in addition to any assessment established by the Association,and shall be paid by all buyers,including builders. Section 3.8 Certificates of Assessment Payment. Upon request, the Board shall furnish written certificates certifying the extent to which assessment payments on a specified Lot are paid and current to the date stated therein. A reasonable charge may be made by the Association for the issuance of such certificate. Section 3.9 Special Assessments. In addition to the general assessments authorized by this article, the Association may, by following the same procedure for ratification of a budget set forth in Subsection 3.3(a), levy a special assessment or assessments at any time, applicable to that year only, for the purpose of defraying, in whole or in part, the cost of any construction or reconstruction, inordinate repair, or replacement of a capital improvement located upon or forming a part of the Common Elements, including necessary fixtures and personal property related thereto, or for such other purpose as the {04408737.DOC;5} -9- i�I Association may consider appropriate. The due dates of any special assessment payments shall be fixed by the Association Action authorizing such special assessment. Section 3.10 Effect of Nonpayment of Assessment. If any assessment payment is not made in full within thirty(30)days after it was first due and payable, the unpaid amounts shall constitute a lien against the Lot assessed and shall bear interest from such due date at a rate set by the Board in its rules and regulations which shall not exceed the highest rate then permitted by law. By acceptance of a deed to a Lot, recording of a real estate contract therefore, or any other means of acquisition of an ownership interest, and whether or not it shall be so expressed in any such deed or other instrument, each Lot Owner shall be deemed to grant thereby to the Association, its agents and employees, and to Declarant during the Declarant Control Period, the right and power to bring all actions against such Lot Owner personally for the collection of such assessments as a debt, and to enforce the liens created by this Declaration in favor of the Association by foreclosure of the continuing liens in the same form of action as is then provided for the foreclosure of a mortgage on real property. The liens provided for in this Declaration shall be for the benefit of the Association and shall arise in accordance with the terms of this Declaration without the necessity of any further action by the Association. The Association shall have the power to bid at any lien foreclosure sale and to acquire,hold, lease, mortgage,and convey the Lot foreclosed against. Section 3.11 Duration of Lien. Any lien arising pursuant to Section 3.9 shall be a continuing lien in the amount stated in the assessment from the time of the assessment, but expiring pro rata as the assessment payments are made, and shall also be the personal obligation of the person or entity who is the Lot Owner of the Lot at the time of the assessment. The personal obligation to pay a prior assessment shall not pass to successors in interest unless expressly assumed by them; provided, however, that in the case of a sale or contract for the sale of any Lot which is charged with the payment of an assessment,the person or entity who is the Lot Owner immediately prior to the date of such sale shall be personally liable for the amounts of the monthly installments due prior to said date, and the new Lot Owner shall be personally liable for monthly installments becoming due on or after such date. The foregoing limitation on the duration of the personal obligation of a Lot Owner to pay assessments shall not, however, affect the validity or duration of the continuing lien for unpaid assessments against the respective Lot. Section 3.12 Reserve Account for Repair or Replacement. Unless the Plat Community has nominal reserve costs or the cost of a reserve study or update exceeds ten percent (10%) of the Association's annual Common Expenses, the Association shall establish and maintain a reserve fund for major maintenance, repair or replacement of the Common Elements and any improvements thereon ("Reserve Account"). Such Reserve Account shall be deposited with a banking institution, and in the name of the Association. The Reserve Account shall be expended only for the purpose of affecting the major maintenance, repair or replacement of the Common Elements and any improvements and community facilities thereon, and to any sidewalks, roads, walls or pathways developed as a part of the Plat Community, equipment replacement, and for operating contingencies of a nonrecurring nature. The Board is responsible for administering the Reserve Account. The Association may establish such other reserves for such other purposes as it may from time to time consider to be necessary or appropriate. The proportional interest of any Lot Owner in any such reserves shall be considered an appurtenance of his or her Lot and shall not be separately withdrawn, assigned, or transferred from the Lot to which it appertains. Section 3.13 Withdrawals from Reserve Account. The Board may withdraw funds from the Reserve Account to pay for unforeseen or unbudgeted costs that are unrelated to replacement costs of the Reserve Components. Any such withdrawal must be recorded in the minute books of the Association.The Board must give notice of any such withdrawal to each Lot Owner and adopt a repayment schedule not to (04408737.DOC;5} - 10- exceed twenty-four (24) months unless the Board determines that repayment within twenty-four (24) months would impose an unreasonable burden on the Lot Owners. The Board must provide to Lot Owners along with the annual budget adopted in accordance with Section 3.3: (a) notice of any such withdrawal; (b)a statement of the current deficiency in reserve funding expressed on a per Lot basis; and (c) the repayment plan. The Board may withdraw funds from the Reserve Account without satisfying the notification for repayment requirements under this section to pay for replacement costs of Reserve Components not included in the reserve study. Section 3.14 Reserve Studies. The provisions of this section are intended to summarize the requirements for reserve studies as provided in RCW 64.90.545 — 64.90.560, and in the event of any conflict with the provisions herein,the statutory provisions shall control. (a) Board Determination. Unless exempt under Section 3.12, The Association must prepare and update a reserve study in accordance with this RCW 64.90.550("Reserve Study"). An initial Reserve Study must be prepared by a Reserve Study Professional and based upon either a Reserve Study Professional's visual site inspection of completed improvements or a review of plans and specifications for unbuilt improvements, or both when construction of some but not all of the improvements is complete. An updated Reserve Study must be prepared annually. An updated Reserve Study must be prepared at least every third year by a Reserve Study Professional and based upon a visual site inspection conducted by the Reserve Study Professional. (b) Lot Owner Demand. When more than three (3)years have passed since the date of the last Reserve Study prepared by a Reserve Study Professional, the Lot Owners to which at least twenty percent (20%) of the votes are allocated may demand, in writing, to the Association that the cost of a Reserve Study be included in the next budget and that the Reserve Study be prepared by the end of that budget year. The written demand must refer to RCW 64.90.555. The Board shall, upon receipt of the written demand, include the cost of a Reserve Study in the next budget and, if that budget is not rejected by the Lot Owners pursuant to Section 3.12, arrange for the preparation of a Reserve Study. Section 3.15 Limitations on Liability related to Reserve Account and Reserve Studies. Monetary damages or any other liability may not be awarded against or imposed upon the Association, its officers, the Board, or those persons who may have provided advice or assistance to the Association, its officers, or the Board, for failure to: (a) establish a Reserve Account; (b) have a current Reserve Study prepared or updated in accordance with the requirements of the Act and this Declaration; or(c) make the required disclosures in accordance with Subsection 3.3(b)and the Act. Section 3.16 Failure to Comply Does Not Relieve Lot Owners. A Lot Owner's duty to pay assessments is not excused, and a budget ratified by the Lot Owners is not invalidated, because of the Association's failure to comply with the Reserve Study or Reserve Account requirements. Section 3.17 Certain Areas Exempt. The Tracts and all portions of the Plat Community dedicated to and accepted by a public authority shall be exempt from assessments by the Association. ARTICLE 4. ARCHITECTURAL CONTROL COMMITTEE Section 4.1 Architectural Control Committee. An Architectural Control Committee ("ACC")consisting of at least three(3)members, but in any event always an odd number of members, is hereby created with the rights and powers set forth in this Declaration. The initial members of the ACC shall be representatives appointed by Declarant. ACC members shall not be entitled to compensation for {04408737.DOC:5} - 11 - their services hereunder, except as may be determined by the Board of Directors. Declarant shall have the right and power at all times to appoint or renew the appointment of the members of the ACC or to fill any vacancy until such time as Declarant no longer owns any Lots. After Declarant no longer owns any Lots, the Board shall have the power to appoint and remove the members of the ACC. Section 4.2 Jurisdiction and Purpose. The ACC shall review proposed plans and specifications for construction of all residences and other Structures within the Plat Community, including any additions, exterior alterations, fences, major landscaping, clearing, painting, paving and excavation. Until Declarant no longer owns any Lots, a prospective Lot Owner shall submit architectural and landscaping plans and specifications to the ACC for its review prior to closing the purchase of a Lot. Prior to submittal to the ACC, the Lot Owner shall verify all improvements meet all local municipal codes. The ACC assumes no liability and holds no authority to approve,permit, or allow any construction on behalf of the local governing authorities.The ACC shall adopt and publish rules and procedures for the review of such plans and specifications. It shall be the obligation of each Lot Owner or prospective Lot Owner to be familiar with the rules and procedures of the ACC. As conditions precedent to approval of any matter submitted to it,the ACC shall find: (a) Consistent with Declaration. The approval of the plan is in the best interest of the Lot Owner and consistent with this Declaration. (b) General Considerations. General architectural considerations, including relationship and layout of Structures to natural features and adjacent homes, orientation and location of buildings, vehicular access, circulation and parking, setbacks, height, walls, fences, and similar elements have been designed to be compatible with the overall design of the Plat Community. (c) Site Considerations. General site considerations, including site layout, relationship of site to vegetation, natural features, open space and topography,orientation and locations of buildings, vehicular access and driveway lighting, circulation and parking, setbacks, height, walls, fences and similar elements have been designed to be compatible with the overall design of the Plat Community. (d) Landscape Considerations. General landscape considerations, including the location, type, size, color, texture and coverage of plant materials, provisions for irrigation, maintenance and protection of existing landscaped areas and similar elements have been considered to ensure visual relief, to complement buildings and Structures, and to provide an attractive environment for the enjoyment of the Lot Owners in general and the enhancement of the property values in the Plat Community. (e) Siding. Without limiting the foregoing, each residence, improvement or Structure constructed on a Lot shall be built of new materials except, with approval of the Architectural Control ACC, decorative items such as used brick, weathered planking, and similar items may be incorporated. All siding materials shall be of masonry (including stucco, dryvit, cultured stone, brick, stone, or similar material), and/or wood or wood-type siding material. All paints or natural finishes shall be those colors commonly known as earth tones. (0 Roofing. The roof shall be a composition roof with a 30-year life. (g) Entry Walks, Porches and Decks. All front entry walks shall be concrete, and all decks and wood porches shall be constructed of cedar or pressure-treated or composite materials. {04408737.DOC;5} - 12- • (h) Driveways.All driveways shall be constructed of concret paving. (i) Local Codes. All buildings or Structures shall be constructed in accordance with all applicable codes and regulations. In the event of a conflict between any applicable codes and this Declaration,the codes shall govern. Section 4.3 Approval Procedures. Two copies of a preliminary application for approval must be submitted in writing to the ACC at the registered office of the Association. Within fifteen (15) days following receipt of a preliminary application, the ACC shall notify the applicant in writing as to whether the application is complete and, if not, of any additional information that may be required before the ACC can review the application. The ACC's rules and procedures may specify the payment of a reasonable nonrefundable fee, to be set forth in the ACC rules, for the purpose of defraying the costs associated with the ACC's review of the preliminary application. This fee may be adjusted from time to time by the ACC in accordance with its rules and procedures. The ACC shall review the application in accordance with the provisions of this section as soon as possible after a complete application has been filed. The decision of a majority of the members of the ACC shall be the decision of the ACC. One copy of approved plans will remain in the ACC's files. All disapproved plans will be returned to the applicant. Section 4.4 Failure of ACC to Take Action.Except as provided in Section 4.6 below, in the event that the ACC fails to respond to an applicant's complete and properly submitted application within thirty (30) days after the ACC has notified the applicant that the application is complete, formal written approval will not be required, and the applicant shall be deemed to have fully complied with the provisions for approval; provided, however, if the ACC delivers notice of the need for one(1)thirty(30) day extension prior to expiration of the above-referenced thirty(30)day period,the ACC shall have thirty (30)additional days to make its decision. Section 4.5 ACC's Obligation. The ACC, in its deliberations and in the discharge of its obligations hereunder, shall act objectively and fairly in making decisions concerning various plans, specifications, plot plans and landscape plans submitted to it by various applicants for consideration in accordance with the provisions of this Declaration. Further, the determinations of the ACC as to noncompliance shall be in writing, signed by the ACC, and shall set forth in reasonable detail the reason for noncompliance. The ACC may approve, approve with conditions, or disapprove an application or any part thereof. In all cases, the sole responsibility for satisfying the provisions of this Declaration and all local building codes and governmental requirements rests with the applicant. In consideration of the ACC's review of an applicant's application, the applicant shall indemnify and hold the ACC harmless from any claim or damages resulting from applicant's failure to comply with applicable building codes or other governmental requirements. Section 4.6 Exemptions and Variances From ACC Requirements. The ACC may, upon request, grant exemptions and variances from the rules and procedures of the ACC and the requirements of this Declaration when the party requesting such exemption or variance establishes to the satisfaction of the ACC that the improvements or other matters which are desired by the applicant are aesthetically as appealing, suited to climatic conditions, and compatible with the overall character of the development as are similar improvements or matters which conform to the requirements of this Declaration. Request for an exemption or variance shall be submitted in writing to the ACC and shall contain such information as the ACC shall from time to time require. The ACC shall consider applications for exemption or variance and shall render its decisions within thirty (30) days after notice to the applicant of proper submission. The failure of the ACC to approve an application for an exemption or variance shall constitute disapproval of such application. {04408737.DOC;5} - 13 - • Section 4.7 Construction Deposit. For purposes of protecting the common Elements and Common Element improvements against damage during construction by a hot Owner, his or her contractors and agents, the ACC has authority, but is not mandated, to require a cash deposit from each Lot Owner to whom approval of plans is given of an amount deemed appropriate by the ACC for such purposes ("Construction Deposit"), if the ACC finds that potential damage can be done to the Common Element(s) caused by Lot Owner's proposed construction. The Construction Deposit, however, shall not exceed Two Thousand Dollars ($2,000.00). In the event a Lot Owner, his or her contractor, agents or employees causes any damage or destruction to any portion of the Common Elements or Common Element Improvements,the ACC shall notify such Lot Owner and request the replacement or repair of the item or area damaged or destroyed. The Lot Owner shall have a period of two (2) business days after the date or receipt of such notice to advise the ACC of its intended course of action and its schedule for correction of the damage, and to commence such correction. The ACC shall in its sole discretion approve or disapprove such course and schedule, and the Lot Owner agrees to make such changes thereto as are necessary to obtain the ACC's approval. If the Lot Owner fails to correct the damage in the manner or within the time approved by the ACC, the ACC may, at its option, perform such work as is necessary to remedy the situation on behalf and at the expense of the Lot Owner and apply the Construction Deposit against the cost thereof. If the cost of such work exceeds the total amount of the Construction Deposit,the Lot Owner shall pay the Association that excess cost within ten (10) days of demand by the ACC. Upon completion of construction of the Improvements on the Lot, and following a joint inspection of the Improvements and Lot by the Lot Owner and the ACC to verify that no damage to the Common Elements and/or Common Element Improvements has occurred, the ACC shall make a final determination of compliance and return the remaining balance, if any, of the Construction Deposit to the Lot Owner, without interest within ten(10)days of such final determination. Section 4.8 Failure of Applicant to Comply. Failure of the applicant to comply with the rules and procedures of the ACC or the final application as approved by the ACC shall, at the election of the Association's Board exercised after thirty (30) days' written notice to such applicant, constitute a violation of this Declaration. In that event, the Board shall be empowered to assess a penalty commensurate with the violation, which shall constitute a lien against such Lot, enforceable as provided herein and/or pursue any other remedy, including, but not limited to, an action for injunctive relief or specific performance. ARTICLE 5. MAINTENANCE OF PROPERTY Section 5.1 General Maintenance Obligations. The maintenance, upkeep, and repair of individual Lots and homes shall be the sole responsibility of the individual Lot Owners thereof, and in no way shall it be the responsibility of the Association, its agents, officers or directors. Except as otherwise provided herein, each Owner shall keep his or her Lot and all improvements therein and thereon in good order and repair and free of debris, in a manner and with such frequency as is consistent with good property management,the terms and conditions of the Map, and all applicable laws. Without limitation as to the foregoing, each Lot Owner shall be obligated to keep his or her Lot and home in a clean, sightly and sanitary condition. The Owner shall also take all steps reasonably required to protect the Party Wall from infestation or damage from or exposure to: rain, snow, hail, wind and other weather conditions; moisture, dry rot, rodents, termites and other damaging or dangerous vermin or insects. In addition, each Lot Owner shall maintain, repair and replace exterior lighting (including bulb replacement) that draws power from such Owner's electrical meter. The buildings shall be maintained so that they have a uniform appearance, including without limitation paint/stain color and condition, exterior finishes, exterior window frames, coverings, and awnings, if any. Exterior paint/stain colors shall match the original colors {04408737.DOC;5} - 14- • unless different colors are approved in writing by ACC. Fences, including fence stains, are governed by Section 7.16 of this Declaration. Section 5.2 Landscaping and Irrigation Improvements. Except as otherwise provided herein, the Association shall maintain, repair and replace the landscaping located on the Lots, and those irrigation improvements located thereon, in a tidy and well-kept condition, consistent with good property management, the terms and conditions of the Map, and all applicable laws. No fences, walls, shrubs, landscaping or other exterior improvements to the Lot other than those installed by Declarant shall be permitted unless authorized by the ACC. Section 5.3 Roofing and Weather Protection. Each Owner shall maintain, repair, and replace the roof, decks, exterior siding, and other weather protection and related improvements on such Owner's Lot, in good condition and repair. These duties shall include rebuilding the improvements following damage by casualty whether or not the casualty was insured. All repairs, replacements, or reconstruction shall be completed with materials as near as possible to the quality, type, and color of the original improvements, unless otherwise agreed upon in writing by the ACC and all Lot Owners within the same building. (a) In the event of damage, deterioration or destruction of the roof, decks, exterior siding, and other weather protection and related improvements on such Owner's Lot, such Owner shall promptly repair or replace the damaged, deteriorated or destroyed roof, decks, exterior siding, and other weather protection and related improvements, or portion thereof, with particular care and attention to damages which may be caused to the home on the adjoining Lot if such work is ignored, delayed or not accomplished in a timely and efficient manner; provided that the Association shall be responsible for the prompt repair and replacement of damaged gutters and downspouts. Each Lot Owner owes his or her adjoining Lot Owners)a duty to maintain and repair all such damages, deterioration and destruction in a prompt and workmanlike manner. (b) In the event of a total roof,wall, siding,deck and/or exterior trim replacement for any building, all Owners of Lots comprising the building shall cause such work to be done. The Owners of each Lot comprising the building shall work together to solicit at least three itemized bids and to select and jointly contract with a single, licensed contractor to perform the required work for the building. If any Owner refuses or fails to participate in this process of selecting and engaging a contractor, then the other Owners of Lots in the building may select and contract with the contractor. The nonparticipating Owner(s) shall remain responsible for such Owner's cost and such Owner's Lot shall be subject to statutory lien rights notwithstanding the refusal or failure of such Owner to participate. The selection of the contractor shall be determined by the majority vote of the Owners in the building with each Owner having a single vote for each Lot owned. The cost of required work shall be allocated equally among the Owners of the Lots comprising the building. (c) Unless delayed by mutual agreement of all Owners, the Owners of any building shall cause the exterior trim, and exterior siding to be repainted or re-stained, as the case may be, on or before each fifth (5th) anniversary from the original effective date of this Declaration. The Owners of each home in a building (including duplexes) shall, not later than 160 days before the deadline for completing the required improvement, work together to solicit at least three itemized bids and to select and jointly contract with a single, licensed contractor to perform the required work for the building. If any Owner in a building refuses or fails to participate in this process of selecting and engaging a contractor, then the other Owners of Lots on which the subject building is located may select and contract with the contractor. The nonparticipating Owner(s) shall remain responsible for such Owner's cost, and such {04408737.DOC;5} - 15 - • Owner's Lot shall be subject to statutory lien rights notwithstanding the refusal or failure of such Owner to participate. The selection of the contractor shall be determined by the majority vote of the participating Owners in any building with each participating Owner having a single vote for each Lot owned; provided that the ACC may select the contractor for a two-Lot building(i.e., a duplex) if the participating Owners of the duplex cannot agree on a single contractor. The cost of required work shall be allocated equally among the Owners of the homes comprising the building. (d) Each Owner of a Lot on which a building is located is benefited by the obligations imposed by this Section and shall have the right to enforce those obligations. Alternatively, if an Owner fails to perform its obligations under this Section within a reasonable time following written notice, any other Owner of a Lot on which the building is located may perform the required obligation, shall have such easements and rights of entry as are necessary to do the same, and may collect the cost of such performance from the non-performing Owner(s)together with interest at the lesser of twelve percent (12%)per annum or the maximum rate permitted by applicable law. Section 5.4 Failure to Perform Obligations. If any Owner fails to perform any obligation required under this Declaration,including but not limited to the maintenance, repairs,or replacements,the Association shall have the right, through its agents and employees, to enter upon any Lot that has been found to violate the foregoing standards in order to restore the home or Lot to such standards; provided that the Association first shall have provided the Lot Owner thirty (30) days' advance written notice of the Association's action and that the action is approved by a two-thirds (2/3) majority vote of the Board. The cost of such work shall be a special assessment on such Lot Owner and his or her Lot only. Section 5.5 Utilities. Each Owner shall contract and pay for all utilities, including but not limited to water, sewer, garbage, gas, electricity, telephone, cable T.V. and internet services, that are separately metered or chargeable to such Owner's Lot. If any utilities are not metered or cannot be billed separately to each Lot, then the Association shall contract and pay for such utilities, and such utilities which serve individual Lots will then be assessed to respective Owners on the basis of usage determined by sub-meters, or if sub-meters are not available, by such other reasonable method as determined by the Board. Section 5.6 Mailboxes. All Owners benefiting from the use of a particular group of mailboxes shall share equally the cost of repair and/or maintenance of said mailboxes. Notwithstanding the foregoing,any damage to the foregoing caused by an individual Owner other than from normal usage, wear and tear, and life expectancy of materials shall be repaired or replaced at the sole cost of such Owner. ARTICLE 6.LIEN ENFORCEMENT Section 6.1 Statutory Lien. The Association has a statutory lien on each Lot for any unpaid assessment against the Lot from the time such assessment is due, pursuant to and on the terms set forth in RCW 64.90.485. Proceedings to enforce the lien or collect the debt for any unpaid assessments will be governed by RCW 64.90.485. Section 6.2 Lien Priority. The Association's lien has priority over all other liens and encumbrances on a Lot except: (a) Liens and encumbrances recorded before the recordation of this Declaration; {04408737.DOC;5 } - 16- (b) Except as otherwise provided in this section, a security interest on the Lot recorded before the date on which the unpaid assessment became due; and (c) Liens for real estate taxes and other state or local governmental assessments or charges against the Lot. A lien under this section also has priority over the security interests described in (b) above to the extent of an amount equal to the following: (i) The Common Expense assessments, excluding any amounts for capital improvements, based on the periodic budget adopted by the Association pursuant Article 3, above, along with any specially allocated assessments that are properly assessable against the Lot under such periodic budget, which would have become due in the absence of acceleration during the six (6) months immediately preceding the institution of proceedings to foreclose either the Association's lien or a security interest described in(b)above; (ii) The Association's actual costs and reasonable attorneys' fees incurred in foreclosing its lien but incurred after the giving of the notice described in (iii) below; provided, however, that the costs and reasonable attorneys' fees that will have priority under this subsection (ii) shall not exceed two thousand dollars($2,000)or an amount equal to the amounts described in(i)above,whichever is less; (iii) The amounts described in (ii) above shall be prior only to the security interest of the holder of a security interest on the Lot recorded before the date on which the unpaid assessment became due and only if the Association has given that holder not less than sixty(60)days' prior written notice that the owner of the Lot is in default in payment of an assessment. Upon payment of the amounts described in (i) of the preceding sentence by the holder of a security interest, the Association's lien described in this section shall thereafter be fully subordinated to the lien of such holder's security interest in the Lot. ARTICLE 7.USE COVENANTS,CONDITIONS AND RESTRICTIONS Section 7.1 Authorized Uses. The Plat Community shall be used solely for residential purposes and related facilities normally incidental to a residential community.After the Declarant Control Period no Lot shall be further subdivided, except as permitted in this Declaration without prior approval conferred by Association Action. Section 7.2 Leasing Restrictions. No residence on any Lot may be leased or rented by any party for a period of less than one (1) year, nor shall less than the whole of any Lot be leased or rented. Each lease or rental agreement shall be in writing and shall by its terms provide that it is subject in all respects to the provisions of the Governing Documents. Any failure by a lessee to comply with the terms of the Governing Documents shall be a default under the lease, whether or not it is so expressed therein. Other than the foregoing, there is no restriction on the right of any Lot Owner to lease his or her Lot or residence. Section 7.3 Animals. No animals, livestock, or poultry of any kind shall be raised, bred, or kept in the Plat Community except as specifically provided herein. Domesticated dogs, cats, or other conventional household pets may be kept if they are not kept, bred, or maintained for any commercial purposes, and all animals must be in compliance with applicable codes and regulations. "Other conventional household pets" shall include only traditionally domesticated pets and shall not include any form of poultry (i.e., domestic fowl, including but not limited to chickens, turkeys, ducks, and geese) or {04408737.DOC;5) - 17- any exotic pets such as large or potentially dangerous reptiles, potentially harmful insects, bees, large birds,wild animals, and animals not normally domesticated, all of which are strictly prohibited in the Plat Community. No domestic pet may be kept if its presence or actions constitute a public or private nuisance. Pets shall be registered, licensed, and inoculated from time to time as required by law. When not confined to the Owner's Unit, pets within the Plat Community shall be leashed and accompanied by a person responsible for cleaning up any animal waste. No pets shall be tethered to any rope, cord, chain, etc.,while outdoors on a Lot within the Plat Community for longer than two hours at a time. Section 7.4 Commercial Uses. No commercial enterprise, including itinerant vendors, shall be permitted on any Lot; provided, however,that the Association may, by adopting rules and regulations, permit specified home occupations to be conducted if allowed by law and if such occupation will not, in the reasonable judgment of the Association, cause traffic congestion or other disruption of the Plat Community; and provided further that no signs or advertising devices of any character shall be permitted. Section 7.5 Vehicle Storage. No storage of goods, vehicles, boats, trailers, trucks, campers, recreational vehicles or other equipment or device shall be permitted in open view from any Lot, except this shall not exclude temporary (less than twenty-four(24) hours) parking of vehicles on the designated driveway areas adjacent to garages on the Lots. Upon forty-eight(48) hours' notice to the Lot Owner of an improperly parked or stored vehicle, boat, or other equipment, the Association has authority to have removed at the Lot Owner's expense any such vehicle visible from the street that is parked on any Lot, street or within a Common Element for more than twenty-four(24)hours. Section 7.6 Garbage. All trash shall be placed in sanitary containers that are screened so as not to be visible from adjoining Structures or streets or roadways. No Lot or any portion thereof shall be used as a dumping ground for trash or rubbish of any kind. Yard rakings, dirt and debris resulting from landscaping work or Construction shall not be dumped onto adjoining lots or streets or roadways. Section 7.7 Utilities Underground. Except for hoses and the like which are reasonably necessary in connection with normal lawn maintenance, no water pipe, sewer pipe, gas pipe, drainage pipe, telephone, power, or television cable, or similar transmission line shall be installed or maintained above the surface of the ground. Section 7.8 Signs. Except for entrance, street, directional,traffic control, and safety signs, no promotional signs or advertising devices of any character shall be posted or displayed in the Plat Community; provided, however, that one temporary real estate sign not exceeding six (6) square feet in area may be erected upon any Lot or attached to any residence placed upon the market for sale or lease. Any such temporary real estate sign shall be removed promptly following the sale or rental of such Lot or residence. In addition, nothing in this section shall be construed to prohibit the display of signs regarding candidates for public or Association office, or ballot issues, on or within a Lot, so long as such signs are no larger than four(4) square feet and in place no longer than sixty (60) days. Flags of the United States or the State of Washington are not considered signs hereunder and are permitted, provided, however,that the Association may place reasonable restrictions on the time, place and manner of display as permitted by federal and state law. Section 7.9 No Obstruction of Easements. No structure, planting, or other material shall be placed or permitted to remain upon the Real Property which may damage or interfere with any easement or the installation or maintenance of utilities, or which may unreasonably change, obstruct, or retard direction or flow of any drainage channels. No decorative planting, structure or fence may be maintained within an easement area. {04408737.DOC;5} - 18 - I I Section 7.10 Antennas and Clotheslines. No external clotheslines shall be permitted in the Plat Community. Each Owner has a right to install an external antenna/satellite dish pursuant to 47 C.F.R. § 1.4000; provided, however, that no other antenna are allowed in the Nat Community and further provided that the ACC approves the location of the allowed antenna. Section 7.11 Weapons. No firearms of any kind or nature, including rifles, handguns, bows, slingshots, BB guns, slings, traps, or any other like weapon, shall be used or discharged within the Plat Community except by authorized governmental officials. Section 7.12 Nuisances Prohibited. No noxious or offensive activity shall be conducted in any portion of the Plat Community, nor shall anything be done or maintained therein in derogation or violation of the laws of the State of Washington or any other applicable governmental entity. Nothing shall be done or maintained on any portion of the Plat Community which may be or become an annoyance or nuisance to the neighborhood or detract from the value of the Plat Community. The Association shall determine by Association Action whether any given use of a Unit unreasonably interferes with the rights of the other Lot Owners to the use and enjoyment of their respective Lots or of the Common Elements, and such determination shall be final and conclusive. Section 7.13 Preservation of Landscaping.No party subject to the terms of this Declaration or his/her/their agents, employees or guests shall destroy or otherwise materially adversely impact landscaping on Common Elements and/or dedicated Tracts, or as otherwise governed by applicable laws, codes and regulations. Section 7.14 Temporary Structures.No Structure or improvement of a temporary character, including without limitation a trailer, tent, shack, garage, barn, or other outbuilding shall be installed, placed or used on any Lot as a dwelling or residence,either temporarily or permanently. Section 7.15 Window Coverings. Within ninety (90) days of occupancy of a residence on a Lot, curtains, drapes, blinds or valances shall be installed on all bedroom, bathroom and closet windows and all main windows in the great room that are visible from adjacent Lots.No newspapers, bed sheets or other makeshift window coverings shall be visible from the exterior of the residence. Section 7.16 Fences. All fences shall match the fences installed at the time the Real Property was first developed by the Declarant, unless otherwise authorized by the Board. Any fences that are stained must be stained to match the stain originally used on the fences within the Plat Community unless otherwise approved by the ACC. Section 7.17 Lot Size Restriction. No Lot or portion of a Lot shall be divided and sold or resold or ownership changed or transferred,whereby the ownership of any portion of the Plat Community shall be less than the area required for the use district in which located. Section 7.18 Damage. Any damage to streets, Common Element Improvements, entry structures, fences, landscaping, mailboxes, lights and lighting standards by Lot Owners, their children, contractors, agents, visitors, friends, relatives or service personnel shall be repaired and restored to like new condition by such Lot Owner within twelve(12)days from the occurrence of such damage. After thirty (30) days' written notice to a Lot Owner from the Association of such Owner's failure to so repair, and after approval by a two-thirds(2/3)majority vote by the Board,the Association shall have the right,through its agents and employees, make such repairs on behalf of such Owner. The cost of such work shall be a {04408737.DOC;5} - 19- special assessment on such Owner and his or her Lot only. ARTICLE 8.COMMON ELEMENTS Section 8.1 Title to Common Elements. All Common Elements were dedicated in accordance with the terms of the Map upon recording of the Map. Every Common Element shall be subject to an easement of common use and enjoyment in favor of the Association and every Lot Owner, their heirs, successors, and assigns, in accordance with the terms and conditions of the Governing Documents and the Map. Section 8.2 Maintenance of Common Elements. The Association shall maintain, repair, replace, improve, and otherwise manage all of the Common Elements so as to keep them in good repair and condition and shall conduct such additional maintenance, repair, replacement, construction, or reconstruction as may be determined pursuant to Association Action. The Association shall take any action necessary or appropriate to the maintenance and upkeep of the Common Elements and improvements thereon. Section 8.3 Common Element Aesthetic Standards Committee. A Common Element Aesthetic Standards Committee ("Common Element Committee") consisting of at least three (3) members, but in any event always an odd number of members, is hereby created with the rights and powers set forth in this Declaration. The initial members of the Common Element Committee shall be representatives appointed by Declarant. Common Element Committee members shall not be entitled to compensation for their services hereunder,. Declarant shall have the right and power, as a Special Declarant Right, at all times to appoint or renew the appointment of the members of the Common Element Committee or to fill any vacancy until such time as Declarant no longer owns any Lots. After Declarant no longer owns any Lots,the Board shall have the power to appoint and remove the members of the Common Element Committee, or alternatively, the Board shall have the power to terminate the Common Element Committee. (a) Jurisdiction and Purpose. The Common Element Committee shall establish and maintain the aesthetic standards for the Common Elements, provide for the maintenance, repairs, replacements and improvements(including contracting with the Declarant or a third party for the same)of the Common Elements and approve the budget for all maintenance, repairs, replacements and improvements for all Common Elements ("Common Element Budget"). The Common Element Committee's powers, jurisdiction and purpose stated herein will be broadly construed. The Common Element Committee assumes no liability and holds no authority to approve, permit or allow any construction on behalf of the local governing authorities. (b) Common Element Budget Process. As part of establishing its annual budget, the Board shall deliver the Common Element Budget to the Common Element Committee for review and approval. All proposed Common Element Budgets shall at a minimum provide funds for maintenance, repair and replacement of the Common Elements consistent with the quality, nature, and location of the Plat Community and in a manner that other communities similar in quality,nature,and location to the Plat Community are maintained. Upon receipt from the Board, the Common Element Committee shall have thirty(30)days to review and approve, or propose changes to,the proposed Common Element Budget. So long as the members of the Common Element Committee are appointed by Declarant, the Board shall adopt the Common Element Budget as approved or revised by the Common Element Committee; provided, however, Declarant shall be responsible for paying any difference in costs between the Board's proposed Common Element Budget and the revised Common Element Budget prepared by the Common (04408737.DOC;5) -20- • Element Committee. Once the members of the Common Element Committee are pointed by the Board, the Board shall have the option of either adopting the Common Element Comm itt e's proposed Common Element Budget or rejecting any revisions; in either case, Declarant shall have no obligation for payment of any portion of the Common Element Budget. Such review and approval process shall be repeated for any changes to the Common Element Budget following the adoption of the annual budget pursuant to Section 3.3. Nothing herein will diminish or waive any duty the Board would otherwise have to fund common expenses from assessments under this Declaration or the Act. Section 8.4 Monument and Landscaping Maintenance and Easements. The Association shall be responsible for maintaining any monument signage in the Plat Community and shall be responsible for maintaining any landscaping in Common Elements, including but not limited to planter strips, in accordance with the terms of the Map and all applicable laws,codes and regulations. ARTICLE 9.CERTAIN GRANTS,EASEMENTS,COVENANTS AND RESTRICTIONS Section 9.1 Easements for Encroachments. There is hereby declared and granted to the Owner of each Lot an easement over all adjoining Lots for the purpose of accommodating any encroachment due to engineering errors, errors in original construction, settlement or shifting of any building located on any Lot, or any other similar cause, and any encroachment due to building overhang or projection. Without limitation, such easement shall be applicable to any fence installed by Declarant on the Real Property. There shall be valid easements for the maintenance of said encroachment so long as they exist, and the rights and obligations of the Owner shall not be altered in any way by said encroachment, settling, or shifting; provided, however, that in no event shall an easement for encroachment be created in favor of an Owner or Owners if said encroachment occurred due to willful act of said Owner or Owners. If any Structure on a Lot is partially or totally destroyed, and then repaired or rebuilt, the Owners agree that minor, unintentional encroachments over adjoining Lots shall be permitted, and that there shall be valid easements for the maintenance of said encroachments so long as they shall exist. The foregoing encroachments shall not be construed to be encumbrances affecting the marketability of title to any Lot. Section 9.2 Lot Line Easements. Each Lot and Tract is subject to an easement two-and-a- half(2.5) feet in width parallel with and abutting all interior Lot lines and Tract lines and five (5) feet in width parallel with and abutting all front and rear Lot lines and Tract lines for the purpose installing and maintaining walls, storm drains, and other private utilities. In the event a lot line adjustment is approved by the City of Renton after the Map is recorded, the easement(s) shall move with the adjusted lot lines. Maintenance of each easement area and the walls and utilities within shall be the responsibility of the Owners of the Lot(s)and/or Tract(s)benefiting from said easement. Upon completion of any work within the easement areas, those responsible for the work shall promptly and fully restore the easement areas to their original or better condition. No structures other than fences, walls, yard drains, and utilities shall be constructed within these easements. These easements were granted to Declarant, the Association, and their respective assigns upon recording of the Map. Section 9.3 Party Walls. (a) General Rules. To the extent not inconsistent with the provisions of this section and the Map, the general rules of law regarding party walls and liability for property damage due to negligent or willful acts or omissions shall apply to the Party Walls.Nothing may be done that will lessen or impair the structural support and integrity of the Party Walls. Each Owner of a Party Wall Adjoining Lot shall have the right to joint use, with the Owner of the other Party Wall Adjoining Lot, of the Party (04408737.DOC;5} -21 - Wall. Except as otherwise expressly permitted in this Declaration, no windows, chimney flues, or other openings may be made in a Party Wall, and no Owner may undertake or permit any act that impairs the use of the Party Wall by the home on any other Party Wall Adjoining Lot. The Owner of each Party Wall Adjoining Lot shall maintain the home on that Lot and take all other steps reasonably necessary to protect the Party Wall from damage or deterioration from any cause, whether sudden or cumulative, including, but not limited to,water or moisture intrusion, damage from weather conditions,dry rot and infestation by vermin or insects. (b) Work. The Owner of each Party Wall Adjoining Lot shall have the right to expose and gain access to the interior of the Party Wall for the purpose of maintaining, repairing, restoring, reconstructing, rebuilding and altering any component of that Party Wall (collectively "Work"), subject to this Declaration and the following provisions,conditions and requirements: (i) Except as otherwise established in this Declaration, all Work shall comply with applicable law and be done at the sole expense and responsibility of that Owner; (ii) No Work may in any way negatively affect the other Party Wall Adjoining Lot or the home thereon by removing soundproofing or insulation, altering its utility service or otherwise; (iii) No Work may in any way impair the structural integrity or functioning of the Party Wall; and (iv) The Owner undertaking or causing to be undertaken the Work shall be responsible for any damage in any way arising out of and/or related to the Work. The Owner of a Party Wall Adjoining Lot ("Indemnifying Owner") shall indemnify and hold harmless the Owner of the other Party Wall Adjoining Lot from and against any and all liability, suits, costs and expenses (including attorney's fees) in any way arising out of any lien or claim of lien asserted and/or filed related to any Work for which the Indemnifying Owner is responsible under this Declaration, or otherwise. (c) Cost of Repair. Except as otherwise provided in this Declaration, the Owners of Party Wall Adjoining Lots shall equally share the expense of all reasonably necessary maintenance repair, and reconstruction of the shared Party Wall. A Party Wall that is damaged or destroyed shall be repaired or reconstructed to essentially its condition prior to such damage or destruction. Any Owner of a Party Wall Adjoining Lot may restore the Party Wall without needing the approval of the other Party Wall Adjoining Lot Owner. If the need for maintenance, repair, and/or reconstruction of a Party Wall results from the intentional acts or negligence of an Owner or an occupant of that Owner's Lot, or the licensee or invitee of that Owner or occupant,then that Owner shall promptly maintain, repair, and/or reconstruct the Party Wall and shall be solely responsible for all expenses and damages related to and/or arising out of such intentional acts or negligence. (d) Weatherproofing. Notwithstanding any other provisions of this Section, an Owner who negligently or willfully causes the Party Wall to be exposed to the elements shall bear the whole cost of furnishing the necessary protection against such elements. (e) Right to Contribution Runs with Land. The right of any Owner to contribution from any other Owner under this section shall be appurtenant to the land and shall pass to such Owner's (04408737.DOC;5) -22 - successors in title. Section 9.4 Tracts. (a) Tracts A, D, F, G. Tracts A, D, F, and G are open space tracts to be preserved in perpetuity and are for the benefit of all Lot Owners. Each ownership of a Lot shall include an equal and undivided ownership in said Tracts. Each conveyance of a Lot must include a 1/45th interest in the Tracts. The Association shall be responsible for maintaining, protecting, repairing, and replacing the Tracts and any improvements contained therein,with the exception of those utilities owned and maintained by utility providers. (b) Tracts H. Tract H is a critical area tract to be preserved in perpetuity and is for the benefit of all Lot Owners. Each ownership of a Lot shall include an equal and undivided ownership in Tract H. Each conveyance of a Lot must include a 1/45th interest in the Tract. The Association shall be responsible for maintaining, protecting, repairing, and replacing the Tract and any improvements contained therein, with the exception of those utilities owned and maintained by utility providers. If the Association fails to properly maintain Tract H, the Owners shall be responsible for the maintenance, protection, repair, and replacement. Development, alteration, or disturbance within the Tract is prohibited except for purposes of habitat enhancement as part of an enhancement project that has received prior written approval from the City of Renton or for required maintenance of the utilities located within the Tract that has received prior written approval from the City. Such activities must be conducted using best available science. Maintenance includes ensuring that no alterations occur within the Tract and that all vegetation remains undisturbed unless the express written authorization of the City has been received. (c) Tract B. Tract B is a private alley tract for ingress, egress, and utilities for the benefit of Lots 1 through 4 and shall be owned and maintained by the Owners of said Lots. Each conveyance of Lot 1, 2, 3, or 4 must include a 1/4th interest in Tract B. The Association shall manage maintenance of Tract B, provided that the Owners of Lots 1 through 4 shall maintain all private utilities, including storm drainage facilities and alley paving within said Tract. Cedar River Water and Sewer District shall maintain all public water and sanitary sewer facilities within Tract B. (d) Tract C. Tract C is a private alley tract for ingress, egress, and utilities for the benefit of Lots 5 through 13 and shall be owned and maintained by the Owners of said Lots. Each conveyance of one of Lots 5 through 13 must include a 1/9th interest in Tract C. The Association shall manage maintenance of Tract C, provided that the Owners of Lots 5 through 13 shall maintain all private utilities, including storm drainage facilities and alley paving within said Tract. Cedar River Water and Sewer District shall maintain all public water and sanitary sewer facilities within Tract C. (e) Tract E. Tract E is a private alley tract for ingress, egress, and utilities for the benefit of Lots 24 through 27 and shall be owned and maintained by the Owners of said Lots. Each conveyance of Lot 24, 25, 26, or 27 must include a 1/4th interest in Tract E. The Association shall manage maintenance of Tract E, provided that the Owners of Lots 24 through 27 shall maintain all private utilities, including storm drainage facilities and alley paving within said Tract. Cedar River Water and Sewer District shall maintain all public water and sanitary sewer facilities within Tract E. Section 9.5 Public and Private Utility Easements. Upon recording of the Map, easements were granted to the City of Renton, Puget Sound Energy, Inc., CenturyLink, Qwest, Comcast, and other utility providers and their respective successors and assigns, under and upon the exterior ten (10) feet of the Lots and Tracts, as depicted and labeled on the Map, lying parallel with and adjoining the street (04408737.DOC;5} -23 - • • frontages in which to install, lay, construct, operate, maintain, repair, replace, and enlarge underground pipes, conduits, cables, and wires with all necessary or convenient underground or ground-mounted appurtenances thereto, for the purposes of serving the Real Property and other properties, together with the right to enter thereupon at all times for the purposes stated herein. These easements entered upon for these purposes shall be restored as near as possible to their original condition by the utility provider. No lines or wires for transmission of electric current, telephone use, cable television, or any other purpose shall be placed or permitted to be placed within the easements unless the same shall be underground or in conduit attached to a building. Section 9.6 Public Storm Water Facility Easements. Upon recording of the Map, easements were granted and conveyed to the City of Renton over,under,through,and across Tracts A and D for the purpose of conveying, storing, managing, and facilitating storm and surface water per the approved civil construction plans on file with the City. The City has the right to enter said storm drainage easement for the purpose of inspecting, operating, maintaining, improving, and repairing the drainage facilities therein. Section 9.7 Public Sewer and Waterline Easements. Upon recording of the Map, easements were granted to Cedar River Water and Sewer District over, under, and across areas depicted on the Map for the purpose of maintaining the public sanitary sewer facilities and the public waterline facilities. Section 9.8 Public Easement Restrictions. Several restrictions and prohibitions apply to the public easements noted on the Map, including restrictions on activities within the easement areas and surrounding areas. Owners should consult the public easement restrictions on the Map prior to disturbing the ground or making any improvements within a Lot. Section 9.9 Private Drainage.Upon recording of the Map, private storm drainage easements were granted to the Lot Owners. Said easements are described and depicted on the Map. Each Lot Owner shall be responsible for maintaining the portion of the drainage facilities that said Owner benefits from and shall share in the maintenance of the portions of the drainage facilities used in common with other Owners. In addition, each Lot Owner shall be responsible for maintaining the storm water stub from the point of use on the Owner's Lot to the point of connection to the City's storm mainline. Any portion of a storm stub that jointly services more than one Lot shall be jointly maintained and repaired by the Lot Owners sharing the stub. Section 9.10 Private Waterline Easements. Upon recording of the Map, private waterline easements were granted to certain Lot Owners. Said easements are described and depicted on the Map. Each Lot Owner shall be responsible for maintaining the portion of the waterline facilities that said Owner benefits from and shall share in the maintenance of the portions of the waterline facilities used in common with other Owners. Section 9.11 Emergency Access Easements. Upon recording of the Map, an easement was granted to Renton Regional Fire Authority over and across Tracts B, C, and E for the purposes of emergency access. An easement was also granted to the City of Renton over, under, and across Tract A for the purposes of utility and emergency access. Section 9.12 Sidewalk Maintenance. Each Lot Owner shall be responsible for keeping the sidewalk abutting the Lot clean and litter free. The Lot Owner shall be responsible for maintaining vegetation within the abutting landscape strip,excluding the street trees owned by the City of Renton. The {04408737.DOC;5} -24- • • City shall not bear any maintenance responsibility for the landscape strips. Section 9.13 Street Trees and Lights. The City of Renton owns and hall maintain the street trees and streetlights. Section 9.14 Access to Renton-Maple Valley Road (SR 169). Direct public access to Renton-Maple Valley Road(State Route 169)shall be vacated when future access to a public road can be achieved either through the Molasses Creek Condominium (parcel no. 556890-0000) road network or via redevelopment of the Molasses Creek parcel. ARTICLE 10.INSURANCE; CASUALTY LOSSES; CONDEMNATION Section 10.1 The Association shall maintain in its own name, to the extent reasonably available and subject to reasonable deductibles: (a) Property insurance on the Common Elements, on property that must become Common Elements and other areas for which the Association has assumed responsibility for maintenance, repair and/or replacement, insuring against risks of direct physical loss commonly insured against. Because there are vertical boundaries that comprise common walls between Units, the insurance maintained under this Section shall include the Units, including without limitation the roof, structural components, exterior bearing walls, foundations, patios, balconies, exterior fixtures, machinery, and exterior equipment. The insurance shall not provide coverage for any interior surfaces, interior fixtures, interior equipment, cabinets, plumbing fixtures, electrical fixtures, furniture, art, personal effects, and appliances or other personal property of the Unit Owners. The total amount of insurance after application of any deductible shall not be less than 100% of the actual cash value of the insured property at the time the insurance is purchased and at each renewal date,exclusive of land,excavations, foundations and other items normally excluded from property policies. (b) Commercial general liability insurance, including medical payments insurance, in an amount determined by the Board, but not less than $1,000,000, covering all occurrences commonly insured against for death, bodily injury and property damage arising out of or in connection with the use, ownership or maintenance of the Common Elements and other portions of the community for which the Association has maintenance responsibilities. (c) Workmen's compensation insurance to the extent required by applicable laws; (d) Fidelity insurance with coverage to protect against dishonest acts on the part of officers, directors, trustees, employees or the Association and Managing Agent and all other persons who handle or are responsible for handling funds of or administered by the Association. All such fidelity insurance shall name the Association as obligees and shall be not less than the estimated maximum of funds, including reserve funds, in custody of the Association at any time during the term of each policy, but, in no event, shall the aggregate amount of insurance be less than three months' aggregate Assessments including reserve funds. The policy shall contain waivers of any defense based upon the exclusion of persons who serve without compensation from any definition of "employee" or similar expression. (e) Such other insurance (including directors' and officers' liability) as the Board deems advisable; provided that notwithstanding an other provisions herein, the Association shall continuously maintain in effect such casualty,flood and liability insurance and a fidelity bond meeting the {04408737.DOC;5} -25 - insurance and fidelity bond requirements for Plat Community projects established by the Federal Housing Administration, the Federal Home Loan Mortgage Corporation, Veterans Affairs, or other governmental or quasi-governmental agencies involved in the secondary mortgage market, so long as any such agency is a Mortgagee or Owner of a Unit within the Nat Community, except to the extent such coverage is not available or has been waived in writing by such agency. Section 10.2 Owner's Insurance. Notwithstanding the provisions of Section 10.1, each Unit Owner may, but is not required to, obtain and maintain owner's insurance for their Unit, including coverage of any obligation to pay or reimburse the Association for any deductible under the Association's property insurance or for any portion of loss not covered by the Association's property insurance. Section 10.3 Coverage Not Available. If the insurance described in Section 10.1 is not reasonably available, or is modified, cancelled or not renewed, the Association shall promptly cause notice of that fact to be sent to all Owners,to each Eligible Mortgagee and to each Mortgagee to whom a certificate of insurance has been issued at their respective last know addresses. The phrase "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. The Association in any event may carry any other insurance it deems appropriate to protect the Association or Owners. Section 10.4 Required Provisions. Insurance policies carried pursuant to this Article shall: (a) Provide a standard mortgagee clause or equivalent endorsement; (b) Provide that each 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; (c) Provide that the insurer waives its right to subrogation under the policy as to any and all claims against the Association,the Owner of any Unit and/or their respective agents,employees or tenants, and members of their household, and of any defense based upon co-insurance or upon invalidity arising from the acts of the insured; (d) Provide that no act or omission by any Owner, unless acting within the scope of the Owner's authority on behalf of the Association, nor any failure of the Association to comply with any warranty or condition regarding any portion of the premises over which the Association has no direct control,will void the policy or be a condition to recover under the policy; (e) Provide that if, at the time of loss under a policy, there is other insurance in the name of an Owner covering the same risk covered by the policy, the Association's policy provides primary insurance,and the liability of the insurer thereunder shall not be affected by, and the insurer shall not claim any right of setoff, counterclaim, apportionment, proration, contribution or assessment by reason of any other insurance obtained by or for any Owner or any Mortgagee; (f) Provide that the policy cannot be cancelled or substantially modified without 10 days' prior written notice to the Association and each Mortgagee of a first Mortgage; (g) Contain no provision (other than insurance conditions) which will prevent Mortgagees from collection of insurance proceeds;and 104408737.DOC;5} -26- (h) Contain, if available,an agreed amount and Inflation Guard Endorsement. (i) Each Owner appoints the Association as attorney-in-fact for the purpose of purchasing and maintaining the insurance required to be obtained by the Association under this Article, including: collection and appropriate disposition of the proceeds thereof; the negotiation of losses and execution of releases of liability; the execution of all documents; and the performance of all other acts necessary to accomplish such purpose. Section 10.5 Claims Adjustment. Any loss covered by the property insurance obtained by the Association under this Article 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, and not to any holder of a Mortgage. 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 damaged property has been completely repaired or restored or the Plat Community is terminated. Section 10.6 Certificate. An insurer that has issued an insurance policy under this Article shall issue certificates or memoranda of 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 RCW 48.18 pertaining to cancellation or non-renewal of contracts of insurance. The insurer shall not modify the amount or the extent of the coverage of the policy, or cancel or refuse to renew the policy, without complying with the requirements of RCW 64.90.470. Section 10.7 Notification of Sale of Unit. 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 to the Association for the benefit of the Owners under this Article of the name of the new Owner and request that the new Owner be made a named insured under such policy. Section 10.8 Liability for Insurance Deductible and Uninsured Amounts.Notwithstanding any other provision of this Declaration, and except to the extent that a lack of insurance results from the negligence of the Board of the Association or breach of the Board of the Association's duty to insure or damage is the result of the sole negligence of the Association or failure of a Common Element, the Association and/or Unit Owners are responsible for the cost to repair the damage within the limits of any applicable insurance deductible,or any otherwise uninsured amount as follows: (a) Where damage results from the negligence or misconduct of a Unit Owner, its tenant, guest, invitee, or the family, servants, employees, agents, visitors, licensees, or household pet of that Owner(including any damage from the failure of or failure to maintain, repair or replace any item for which the Unit Owner has the maintenance obligation),the Unit Owner is responsible for such costs. (b) Where the damage is limited solely to an Owner's Unit, that Unit Owner is responsible for such costs, unless another Unit Owner is responsible for such costs in accordance with Section 10.8(a). {04408737.DOC;5 } -27- (c) Unless another Owner or Owners is responsible under Section 10.8(a) or 10.8(b), where the damage is to more than one Unit or to at least one Unit and the Common Elements, responsibility for such costs shall be pro-rated between the Association and any involved Unit Owner in proportion to the relative cost to repair the damage to the Common Elements and the affected Unit. Determination as to the relative cost to repair the damage may be made by the Board based on a reasonable estimate for such repairs obtained by the Board concerning the damage suffered by the affected parties. (d) Costs for which a Unit Owner is responsible under this Section 10.8 are considered "loss assessments" and shall be specially charged and assessed against the Unit or Units involved and shall be collectable as Assessments may be collected under this Declaration or at law. Section 10.9 Casualty Losses. In the event of substantial damage to or destruction of any of the Common Elements,the Association shall give prompt written notice of such damage or destruction to the Unit Owners and to all Mortgagees who have requested notice of such damage or destruction from the Association. Insurance proceeds for damage or destruction to any part of the Common Elements shall be paid to the Association as a trustee for the Unit Owners, or its authorized representative, including an insurance trustee,which shall segregate such proceeds from other funds of the Association. Section 10.10 Condemnation. In the event any part of the Common Elements is made the subject matter of any condemnation or eminent domain proceeding, or is otherwise sought to be acquired by any condemning authority, the Association shall give prompt notice of any such proceeding or proposed acquisition to the Unit Owners and to all Mortgagees who have requested notice of any such proceeding or proposed acquisition from the Association. All compensation, damages, or other proceeds therefrom, shall be payable to the Association. ARTICLE 11.ENFORCEMENT Section 11.1 Right to Enforce. The Association, Declarant, or any Lot Owner shall have the right to enforce, by any appropriate proceeding at law or in equity, all covenants, conditions, restrictions, reservations, liens,and charges now or hereafter imposed by the provisions of this Declaration. Section 11.2 Remedies Cumulative. Remedies provided by this Declaration are in addition to, cumulative with, and are not in lieu of, other remedies provided by law. There shall be, and there is hereby created, a conclusive presumption that any breach or attempted breach of the covenants, conditions, and restrictions herein cannot be adequately remedied by an action at law or exclusively by recovery of damages. Section 11.3 Covenants Running with the Land. The covenants, conditions, restrictions, liens, easements, enjoyment rights, and other provisions contained herein are intended to and shall run with the land and shall be binding upon all persons purchasing, leasing, subleasing, or otherwise occupying any portion of the Real Property, their heirs, executors, administrators, successors, grantees, and assigns. All instruments granting or conveying any interest in any Lot shall be subject to this Declaration. Section 11.4 Right to Assess Penalty on Lot for Violations of Declaration. The Board, by simple majority vote, shall determine whether a Lot Owner has breached, or a Lot is in breach, of any of the covenants, conditions, and restrictions provided herein. After thirty (30) days' written notice to such Lot Owner, the Lot Owner shall have an opportunity to be heard by the Board regarding the violation. {04408737.DOC;5} -28- After such hearing, the Association by a two-thirds (2/3) majority vote of the ard, is empowered to assess a penalty in accordance with an established schedule of fines adopted by a Board and furnished to the Lot Owners. Such penalty shall be a levied special assessment and constitute a lien against the Lot, enforceable as provided herein. ARTICLE 12.AMENDMENT Section 12.1 Amendment by Declarant or Association. Upon thirty (30) days' advance notice to Lot owners, Declarant may, without a vote of the Lot 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 liability for Common Expenses or the number of votes in the Association appertaining to a Lot, within five (5) 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. Upon thirty(30) days' advance notice to Lot Owners,the Association may,upon a vote of two-thirds(2/3)of the members of the Board,without a vote of the Lot Owners, adopt, execute, and record an amendment to the declaration for the following purposes: (a)to correct or supplement the Governing Documents as provided above; or(b)to remove any language and otherwise amend as necessary to effect the removal of language in direct conflict with the Act. Section 12.2 Amendments by Lot Owners. Except in cases of amendments that may be executed by the Declarant or the Association pursuant to Section 12.1 or as expressly permitted in accordance with the Act, this Declaration may be amended only by vote or agreement of Lot Owners of Lots to which at least sixty-seven percent(67%)of the votes in the Association are allocated. Section 12.3 Effective Date & Cross-References. Amendments shall take effect only upon recording in the official real property records of King County, Washington. All amendments must contain a cross-reference by recording number to the Declaration and to any prior amendments to the Declaration. All amendments to the Declaration adding Lots must contain a cross-reference by recording number to the Map relating to the added Lots and set forth all information required under RCW 64.90.225(1) with respect to added Lots. ARTICLE 13.GENERAL PROVISIONS Section 13.1 Taxes. Each Lot Owner shall pay without abatement, deduction, or offset,all real and personal property taxes, general and special assessments, including local improvement assessments, and other charges of every description levied on or assessed against his or her Lot, or personal property located on or in the Lot. The Association shall likewise pay without abatement,deduction,or offset,all of the foregoing taxes, assessments,and charges levied or assessed against the Common Elements. Section 13.2 Non-Waiver. No waiver of any breach of this Declaration or failure to enforce any covenant of this Declaration shall constitute a waiver of any other breach,whether of the same or any other covenant,condition,or restriction. Section 13.3 Attorneys' Fees. In the event of a suit or action to enforce any provision of this Declaration or to collect any money due hereunder or to foreclose a lien, the unsuccessful party in such {04408737.DOC;5} - 29- I suit or action shall pay to the prevailing party all costs and expenses, including title reports, and all attorney's fees that the prevailing party has incurred in connection with the suit or action, in such amounts as the court may deem to be reasonable therein, and also including all costs, expe des, and attorneys' fees incurred in connection with any appeal from the decision of a trial court or an l intermediate appellate court. Section 13.4 No Abandonment of Obligation. No Lot Owner, through his or her non-use of any Common Element, or by abandonment of his or her Lot, may avoid or diminish the burdens or obligations imposed by this Declaration. Section 13.5 Captions. The captions of the various articles, sections and paragraphs of this Declaration are for convenience of use and reference only and do not define, limit, augment, or describe the scope,content or intent of this Declaration or any parts of this Declaration. Section 13.6 Severability. Invalidation of any one of these covenants, conditions, restrictions, easements, or provisions by judgment or court order shall in no way affect any other of the same, all of which shall remain in full force and effect. Section 13.7 Notices.All notices, demands, or other communications("Notices") permitted or required to be given by this Declaration shall be in the form of a record, in a tangible medium, or in an electronic transmission in accordance with RCW 64.90.515. If mailed, the Notice shall be by certified or registered mail, return receipt requested, with postage prepaid and shall be deemed given three (3) days after the date of mailing thereof, or on the date of actual receipt, if sooner.Notices provided by electronic transmission shall be deemed effective according to the requirements of RCW 64.90.515. All other Notices shall be deemed given on the date of actual receipt. Notice in a tangible medium to a Lot Owner must be addressed to the Lot address unless the Lot Owner has requested, in a record delivered to the Association, that Notices be sent to an alternate address or by other method allowed by this Declaration. If there is more than one Owner of a Lot, Notice to any one such Owner shall be sufficient. The address of Declarant and of the Association shall be given to each Lot Owner at or before the time he or she becomes a Lot Owner. If the address of Declarant or the Association shall be changed, Notice shall be given to all Lot Owners. Section 13.8 Indemnification. The Association shall indemnify every officer and director authorized to act on behalf of the Association by the Board or by this Declaration against any and all expenses, including counsel fees, reasonably incurred by, or imposed upon, any officer and director in connection with any action, suit or proceeding if approved by the then Board to which he or she may be a party by reason of being or having been an officer and director. The officers and directors shall not be liable for any mistakes of judgment, negligent or otherwise, except for their own individual willful misfeasance, malfeasance, misconduct, or bad faith. The officers and directors shall have no personal liability with respect to any contract or other commitment made by them, in good faith, on behalf of the Association (except to the extent that such officers and directors may also be members of the Association), and the Association shall indemnify and forever hold each officer and director free and harmless against any and all liability to others on account of any such contract or commitment. The Association shall, as a Common Expense, maintain adequate general liability and officers' and directors' liability insurance to fund this obligation. Section 13.9 Applicable Law. This Declaration shall be construed in all respects under the laws of the State of Washington. {04408737.DOC;5} -30- IN WITNESS WHEREOF, the undersigned Declarant has executed this Declaration the day and year first above written. DECLARANT: Tri PointCHomes Washington, Inc., a Washington corporation By: OY1 Its: STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day personally appeared before me Jayme Money, to me known to be the Vice President of Finance and Accounting of Tri Point Homes Washington, Inc., a Washington corporation, the corporation that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that said person is authorized to execute said instrument and that the seal affixed, if any, is the corporate seal of said corporation. GIVEN under my hand and official seal this 3N day of �a ,2022 . k.._>70,.. Ve:, NOTARY PUBL m and for the \\\�O.t R IA 4 O/, State of Washington, residing �G'. ,�s z e....0,,, at et 1kVVK.- . �,•�0 •z, o�6''m. . My commission expires I t(p(ZL 2(Q V NOTARY ' ' F.. B PBL oti: ''4,,/Oir iwA�SN�N\\\ {04408737.DOC;5} - 31 - Exhibit A THAT PORTION OF GOVERNMENT LOT 3 AND THE NORTHWEST QUARTER OF THE SOUTHEAST QUARTER IN SECTION 22, TOWNSHIP 23 NORTH, RANGE 5 EAST, WILLAMETTE MERIDIAN, IN KING COUNTY, WASHINGTON. DESCRIBED AS FOLLOWS: BEGINNING AT A POINT WHICH IS 325 FEET SOUTH AND 35 FEET WEST OF THE NORTHEAST CORNER OF THE NORTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 22 (SAID POINT BEING LOCATED ON THE NORTHERLY LINE OF THAT CERTAIN TRACT OF LAND CONVEYED TO ANDREW GEORGE ELLIOTT, JR. AND BETTY JANE ELLIOTT, HUSBAND AND WIFE BY DEED RECORDED UNDER RECORDING NUMBER 5635570, BEING A POINT WHICH IS 35 FEET WESTERLY FROM THE NORTHEAST CORNER OF SAID TRACT); THENCE NORTH 89'17'39" WEST (NORTH 89'17'47" WEST) ALONG THE NORTHERLY LINE OF SAID ELLIOTT TRACT AND THE WESTERLY EXTENSION THEREOF A DISTANCE OF 675 FEET; THENCE NORTH 01'41'41" EAST TO THE SOUTHERLY MARGINAL LINE OF THE RENTON-MAPLE VALLEY HIGHWAY (SR 169); THENCE SOUTHEASTERLY ALONG SAID SOUTHERLY MARGINAL LINE TO A POINT OF INTERSECTION WITH A LINE WHICH IS 35.00 FEET WESTERLY OF AND PARALLEL WITH THE EAST UNE OF THE SAID NORTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 22 (SAID POINT BEING THE NORTHWEST CORNER OF THAT CERTAIN TRACT OF LAND CONVEYED TO WILLIAM AND RUTH E. VEENHUIZEN, HUSBAND AND WIFE, BY DEED RECORDED UNDER RECORDING NUMBER 8303080882); THENCE SOUTH 01'41'49" WEST (SOUTH 01'41'41" WEST) ALONG THE WESTERLY LINE OF SAID VEENHUIZEN TRACT TO THE POINT OF BEGINNING; (BEING KNOWN AS PARCEL A, KING COUNTY BOUNDARY LINE ADJUSTMENT NUMBER L95L0113, RECORDED UNDER RECORDING NUMBER 9510179023): EXCEPT ANY PORTION THEREOF LYING WITHIN THE RENTON-MAPLE VALLEY HIGHWAY RIGHT OF WAY. TOGETHER WITH AN EASEMENT FOR ROAD, LANDSCAPE, PARKING, EMERGENCY TURNAROUND, AND UTILITIES AS ESTABLISHED IN EASEMENT AGREEMENT RECORDED UNDER RECORDING NO. 20000201000940. SITUATE IN THE COUNTY OF KING, STATE OF WASHINGTON. {04408737.DOC;5 } -32-