When
Recorded, Mail To:
Mr. Thomas K. Callister
c/o The Meister Company Incorporated
5100 Campus Drive
Newport Beach, California 92660
(Recorded in Orange County Recorders Office, Book 13356, pages 1040
through 1084.)
CANYON CREEK
DECLARATION OF RESTRICTIONS
THIS DECLARATION OF RESTRICTIONS ("Declaration"), made on the date
hereinafter set forth by CANYON CREEK, a joint venture ("Declarant"), is
made with reference to the following facts:
R E C I T A L S:
A. Declarant is the owner of certain real property
("Real Property") located in the County of Orange, State of California,
more particularly described as follows:
Tract No. 9355 as recorded on August
31, 1977 in Book 415, pages 15 to 18, inclusive, in the Official Records
of the Orange County Recorder, Orange County, California.
The Real Property consists of (i) lots 1 through 128 (which are
residential lots), (ii) Lots A through G (which are common area lots),
and (iii) the remaining portions of said Tract 9355, which consist of
vehicular roadways and which are hereinafter referred to as "Streets."
B. Declarant intends to establish a residential
development upon Lots 1 through 13, lots 22 through 26, Lots A, E and F
and the Streets (hereinafter collectively referred to as the "Phase I
Property"), and to impose upon the Phase I Property mutually beneficial
restrictions under a general plan of improvement for the benefit of all
of the lots in the development and their future owners.
C. The development is defined and referred to
herein as the "Project." Declarant contemplates that all or additional
portions of the Real Property may be annexed to the Project and
hereinafter set forth. The owner of a residential lot shall receive
title to his individual lot plus in appurtenant membership in the CANYON
CREEK HOMEOWNERS ASSOCIATION, a California nonprofit corporation created
for the purposes of administering and controlling the Common Area (as
such term is hereinafter defined).
NOW, THEREFORE, Declarant hereby declares that the
Phase I Property shall be held, conveyed, mortgaged, encumbered, leaned,
rented, used, occupied, sold, and improved, subject to the following
declarations, limitations, covenants, conditions, restrictions and
easements, all of which are for the purpose of enhancing and protecting
the value and attractiveness of the Project, and every part thereof, in
accordance with the plan for its development and the division thereof
into a residential development or developments. All of the limitations,
covenants, conditions, restrictions and easements shall run with the
land and shall be binding upon Declarant, its successors and assigns,
and all parties having or acquiring any right, title or interest in or
to any part of the Project.
ARTICLE I
DEFINITIONS
1. "ARTICLES" means the Articles of Incorporation
of the Association, as they may be amended from time to time.
2. "ASSESSMENT" means that portion of the cost of
maintaining, improving, repairing, operating and managing the Common
Area which is to be paid by each lot owner as determined by the
Association.
3. "ASSOCIATION" means the CANYON CREEK HOMEOWNERS
ASSOCIATION, a California nonprofit corporation.
4. "BOARD" or "BOARD OF DIRECTORS" means the
governing body of the Association.
5. "BYLAWS" means the ByLaws of the Association,
as they may be amended from time to time.
6. "COMMON AREA" means the portions of the Project
owned by the Association and described as follows:
a. Lots A, E
and F of Tract No. 9355 as recorded on August 31, 1977 in Book 415,
pages 15 to 18, inclusive, in the official Records of the Orange County
Recorder, Orange County, California; and
b. All Streets
located upon the Real Property.
The Common Area shall also include Lots B through D and Lot G if and
when such Lots are annexed to the Project.
7. "COMMON EXPENSES" means the actual and
estimated expenses of operating the Project and any reasonable reserves
for such purposes as found and determined by the Board, and all sums
designated common expenses by or pursuant to the governing documents.
8. "DWELLING STRUCTURE" means the residential
structure located or to be located upon a lot.
9. "DECLARANT" means CANYON CREEK, a joint
venture, and shall include the successors and assigns of Declarant, if
such successors and assigns should acquire more than one (1) undeveloped
or partially developed Lot within the Project from Declarant for the
purpose of development.
10. "DECLARATION" means this Declaration of
Restrictions, as may be amended from time to time.
11. "GOVERNING DOCUMENTS" mans this Declaration,
the Articles, and the ByLaws, as they may be amended from time to time,
and the rules and regulations for the members as established from time
to time.
12. "INSTITUTIONAL LENDER" means any bank, savings
and loan association, insurance company, or other financial Institution
holding a recorded first mortgage on any lot in the Project.
13. "LOT" means any one of Lots 1 through 128 of
Tract No. 9355, as recorded August 31, 1977, in the Official Records of
the Orange County Recorder, Orange County, California and which lot is
located within the Project.
14. "MEMBER" means a person entitled to membership
in the Association as provided herein. Whenever "Member" or "membership"
is used in this Declaration for the purpose of determining quorums,
percentages, or minimum or maximum numbers for voting as specified in
this Declaration, all persons who are members because of their joint
ownership of a particular lot shall be counted as one.
15. "MORTGAGE" shall include a deed of trust as
well as a mortgage. A "first mortgage" shall mean a mortgage or deed of
trust which is recorded, which has first priority over all other
mortgages and deeds of trust, and which was made in good faith and for
value.
16. "MORTGAGEE" shall include a beneficiary or a
holder of a deed of trust as well as a mortgagee.
17. "MORTGAGOR" shall include the trustee of a
deed of trust as well as a mortgagor.
18. "OWNER" means the record holder or holders of
title of a lot in the Project. "Owner" shall include any person having a
fee simple title to any lot and shall include contract sellers, but
shall exclude persons or entities having any interest merely as security
for the performance of an obligation. Whenever "owner" is used in this
Declaration for the purpose of determining quorums, percentages, or
minimum or maximum numbers for voting as specified in this Declaration,
all the owners of a particular lot shall be counted as one.
19. "PERSON" means a natural person, a
corporation, a partnership, a trustee, or other legal entity.
20. "PHASE I PROPERTY" means the following
portions of the Real Property: lots 1 through 13, lots 22 through 26,
Lot 33, Lots A, E and F and all streets.
21. "PROJECT" means the Phase I Property and all
improvements located and to be located thereon, and shall also include
such additional portions of the Real Property as may be annexed from
time to time, and all improvements located or to be located upon such
additional portions.
22. "REAL PROPERTY" means the Real Property
located in the County of Orange, State of California, more particularly
described as follows:
All of Tract No. 9355, as recorded on
August 31, 1977 in the official Records of the Orange County Recorder,
Orange County, California.
23. "STREETS" means all of the Real Property with
the exception of lots 1 through 128 and Lots A through G.
ARTICLE II
DESCRIPTION OF PROJECT, DIVISION OF PROJECT AND
PROPERTY RIGHTS
1. Description of Project: The Project consists of
the Phase I Property and all improvements located and to be located
thereon. Declarant intends to develop the Phase I Property by
constructing dwelling structures and usual appurtenances and other
facilities thereon. The Project shall also include such additional
portions of the Real Property as may be annexed from time to time.
2. Division of Project and Property Rights: The
Project is divided into lots and Common Area as follows:
a. Lots: A lot is a plot
of land within the Project and shown upon the subdivision map referred
to in Article I, Paragraph 13, with the exception of the Common Area.
b. Common Area: The
"Common Area" is the portion of the Real Property to be owned by the
Association. The Common Area is described in Article I, Paragraph 6
hereof, and includes all improvements located or to be located thereon.
Each owner has a non-exclusive right and easement to use the Common Area
(subject to the provisions of the governing documents) in accordance
with the purposes for which the Common Area is intended, so long as the
rights of other owners are not hindered or encroached upon, and there is
no restriction upon any owner's right of ingress to and egress from his
lot. The foregoing right and easement shall not be conveyed or otherwise
transferred separately from its respective lot, and said right and
easement shall be deemed to be conveyed or encumbered with its
respective lot even though the description in the instrument of
conveyance or encumbrance may refer only to the fee title to the lot.
The Common Area will be conveyed by Declarant to the Association
concurrently with the first conveyance of a lot to an owner. Thereafter,
except as to the Declarant's right to grant easements for public
utilities and similar or related public purposes, the Common Area
(including facilities located thereon) shall not be abandoned,
partitioned, subdivided, sold, alienated, released, transferred,
hypothecated, or otherwise encumbered without the prior written approval
of one hundred percent (100%) of first mortgage liens of the lots (based
upon one (1) vote for each first mortgage owned) and the prior written
approval of seventy-five percent (75%) of the owners (other than the
Declarant). Notwithstanding anything to the contrary, Declarant, its
successors and assigns, hereby reserves the right to enter upon the
Common Area after conveyance of the same to the Association, for the
purposes of marketing, selling, constructing, leasing any lot or any
additional part of the Real Property.
3. Annexation of Additional Real Property:
Additional portions of the Real Property may be annexed to the Project
and become subject to this Declaration by either of the methods set
forth in this section. Upon annexation, additional parcels shall become
subject to this Declaration without the necessity of amending individual
sections hereof.
a. Annexation Pursuant to
Plan: Additional portions of the Real Property may be annexed to and
become a part of the Project, subject to this Declaration, and subject
to the jurisdiction of the Association, without the assent of the
Association, its members, or the owners, on condition that:
(1) Date for Annexation: Unless otherwise approved by the vote or
written assent of at least two-thirds (2/3) of the total votes
residing in Association members other than Declarant. Any annexation
to the Project pursuant to this subsection a. shall be effected
prior to the third anniversary of the original issuance of the most
recently issued public report for a phase of the Project.
(2) Declaration of Annexation: A Declaration of Annexation shall
be recorded cover the applicable portion of Real Property to be
annexed. A Declaration of Annexation may contain such complementary
additions and modifications of the covenants and restrictions
contained in this Declaration as may be necessary to reflect the
different character, if any, of the added property, and as are not
inconsistent with the scheme of this Declaration. Each Declaration
of Annexation shall constitute an amendment of this Declaration.
b. Annexation Pursuant to
Approval: Upon approval in writing of-the Association pursuant to the
vote of a two-thirds (2/3) majority of the voting power of its members
or the written assent of such two-thirds (2/3) majority, excluding the
voting power or written assent of Declarant, the owner of any property
who desires to add it to the scheme of this Declaration and to subject
it to the jurisdiction of the Association may file of record a
Declaration of Annexation containing complementary additions and
modifications as described in the preceding paragraph. Each such
Declaration of Annexation shall constitute an amendment to this
Declaration.
4. Deannexation of Real Property: Declarant may
delete all or a portion of a phase of the Project or all or a portion of
the Real Property from coverage of this Declaration and the jurisdiction
of the Association provided (1) Declarant is the Owner of all such real
property previously added to the Project, (2) a Declaration of
Deannexation is recorded in the same manner as the applicable
Declaration of Annexation was recorded, (3) Declarant has not exercised
any Association vote with respect to any portion of said phase of real
property to be deannexed, (4) assessments have not yet commenced with
respect to any portion of said phase of real property to be deannexed,
(5) there has been no close of escrow for the sale of any lot in said
phase of real property to be deannexed, and (6) the Association has not
made any expenditures or incurred any obligations with respect to any
portion of said phase of real property to be deannexed.
ARTICLE III
ASSOCIATION, ADMINISTRATION, MEMBERSHIP AND VOTING
RIGHTS
1. Association to Manage Common Areas: The
management of the common Area shall be vested in the CANYON CREEK
HOMEOWNERS ASSOCIATION, a California nonprofit corporation. The owners
of all the lots covenant and agree that the administration of the
Project shall be in accordance with the provisions of the governing
documents.
2. Membership: The owner of a lot shall
automatically, upon becoming the owner of same, be a member of the
Association, and shall remain a member thereof until such time as his
ownership ceases for any reason, at which time his membership in the
Association shall automatically cease.
3. Transferred Membership: Membership in the
Association shall not be transferred, pledged, or alienated in any way,
except upon the sale or encumbrance of the lot to which it is
appurtenant (in which case the membership is automatically transferred),
and then only to the purchaser (in the case of a sale) or mortgagee (in
the case of an encumbrance) of such lot. Any attempt to make a
prohibited transfer is void. In the event the owner of any lot should
fail or refuse to transfer the membership registered in his name to the
purchaser of his lot, the Association shall have the right to record the
transfer upon its books and thereupon the old membership outstanding in
the name of the seller shall be null and void. Within three (3) days of
the transfer of any lot, the transferor and transferee thereof must each
notify the Board of Directors of the transfer.
4. Membership Classes and Voting Rights:
Class A. Class A members
shall be all owners with the exception of the Declarant. Each lot shall
be entitled to one vote. When more than one person holds an interest in
any lot, all such persons shall be members, and the vote for such lot
shall be exercised as the majority of such persons among themselves
determine. In no event shall more than one vote be cast with respect to
any lot, and in no event shall a lot's vote be split. The owner (or
valid proxy) exercising the vote for any lot at a meeting shall be
conclusively held to be voting in the manner determined by the majority
of the owners of that lot unless the Association is otherwise notified
in writing prior to the meeting or an objection is made by another owner
of that lot from the floor at the meeting.
Class B. The Class B
member shall be the Declarant, who shall be entitled to vote as follows:
voting shall be the same as for Class A memberships, except that the
Class B member shall have three (3) votes for each lot owned by it. The
Class B membership shall be converted to Class A membership and shall
forever cease to exist on the occurrence of whichever of the following
is first in time:
(a) When the total outstanding votes held by Class A members
equal the total outstanding votes held by the Class B member
(tripled as stated above);
(b) The date of the second anniversary of the original issuance
of the most-recently-issued subdivision public report for a phase of
the Project: or
(c) The date of the fourth anniversary of the original issuance
of the final subdivision public report for the first phase of the
Project.
Upon conversion of Class B membership to Class A
membership, the provisions of the governing documents which require
action by both classes of the voting membership shall require the stated
action by Class A members only.
ARTICLE IV
ASSESSMENTS
1. Creation of the Lien and Personal Obligations
of Assessments: The Declarant, for each lot owned within the Project,
hereby covenants, and each owner of any lot by acceptance of a deed
therefor, whether or not it shall be so expressed in such deed, hereby
is deemed to covenant and agree to pay to the Association: (a) annual
assessments or charges (payable in equal monthly installments), and
special assessments for capital improvements, payment of taxes, and as
hereinafter set forth such assessments to be established and collected
as hereinafter provided. Each annual and special assessment, together
with interest, costs and reasonable attorneys' fees and expenses
incurred by the Association in collecting any delinquent assessments,
shall be a charge on the lot and shall be a continuing lien upon the lot
against which each such assessment is made, the lien to become effective
upon recordation of a notice of assessment. Each such assessment,
together with interest, costs and reasonable attorneys' fees and
expenses, shall also be the personal obligation of the person who was
the owner of such lot at the time when the assessment fell due. The
personal obligation for delinquent assessments shall not pass to an
owner's successors in title unless expressly assumed by them. No owner
of a lot may exempt himself from liability for his contribution towards
the common expenses by waiver of the use or enjoyment of any of the
Common Area or by the abandonment of his lot.
The annual assessments for the lots in the Project
shall commence upon the first day of the first calendar month following
the first close of escrow for the sale of a lot in the Project, and
thereafter, as additional portions of Real Property are annexed to the
Project for additional phases, as to lots in each such additional phase
upon the first day of the first calendar month following the first close
of escrow for the sale of a lot in such additional phase.
2. Purpose of Assessments: The assessments levied
by the Association shall be used exclusively to promote the recreation,
health, safety, and welfare of all the residents in the Project, for
payment of taxes assessed against the Common Area and other property of
the Association, for the improvement and maintenance of the Common Area
for the common good of the Project, and for other Association expenses.
3. Determining Annual Assessments: Within sixty
(60) days before the close of each fiscal year of the Association, the
Board of Directors shall determine the expenditure budget for the
Association for the next succeeding fiscal year. The expenditure budget
shall include all expenses of the Association, including reasonable
adequate reserve funds for contingencies and for maintenance, repairs,
and replacement of those elements of the Common Area and other property
owned by the Association that must be replaced on a periodic basis and
are payable in regular installments rather than by special Assessments.
The amount so determined (less any surplus expected to be on hand from
the prior year's expenditure budget) shall be the total Project annual
assessment. The Board may appoint a Finance Committee to assist in the
determination of the expenditure budget. A copy of the expenditure
budget shall be distributed to each member of the Association not less
than thirty (30) days before the beginning of the fiscal year. Upon the
first close of escrow for the sale of a lot in any additional phase of
the Project, the Board of Directors shall have the responsibility of
redetermining (within thirty (30) days of said first close of escrow)
the annual assessments for the Project (as expended) for that fiscal
year, and once redetermined, the Board of Directors on behalf of the
Association shall levy said redetermined assessment (to take effect on
the first day of the first calendar month following the date of such
redetermination) against the owners of the new number of lots In the
Project (as expanded) subject to the provisions of paragraph 1 hereof
relating to reduced assessments or exemption therefrom for the Declarant
or other owner of a subdivision interest.
4. Procedure for Increasing Annual Assessments:
From and after January 1 of the year immediately following the first
conveyance of a lot to an owner, the Board of Directors may increase the
maximum annual assessment by not more than twenty percent (20%) above
the maximum annual assessment for the previous year. If the Board of
Directors desires to increase the maximum annual assessment by more than
said twenty percent (20%) amount, such increase shall require the vote
or written assent of a majority of each class of members of the
Association.
5. Special Assessments: In addition to the annual
assessments authorized above, the Board of Directors may levy (without
the vote or written assent of a majority of the voting power of the
Association residing in members other than the Declarant), in any fiscal
year, special assessments applicable only to that year to defray the
costs of any action or undertaking on behalf of the Association,
provided that any such assessments in the aggregate shall not exceed
five percent (5%) of the budgeted gross expenses of the Association for
that fiscal year. If the Board of Directors desires to levy special
assessments in any fiscal year in excess of such five percent (5%)
amount, then such special assessments shall require the vote or written
assent of a majority of the voting power of each class of members of the
Association. The foregoing provisions of this Paragraph 5 with respect
to special assessments do not apply in cases where a special assessment
against a member is a remedy utilized by the Association to reimburse
the Association for costs incurred in bringing the member or his lot
into compliance with the provisions of the governing documents.
6. Division and Payment of Assessments: All
assessments, both annual and special, shall be charged to and divided
among the number of lots equally. The owners of each lot shall be
jointly and severally liable for the assessment made against their lot.
Each owner shall be obligated to pay to the Association his regular
assessment in twelve (12) equal monthly installments on or before the
fifteenth (15th) day of each calendar month, and to pay special
assessments within thirty (30) days after their levy or at such other
times as the Board of Directors shall designate. All assessments shall
be paid at such place as the Board of Directors shall designate.
7. Annual Assessments - Miscellaneous: As stated
in Article IV, Paragraph 1 above, the annual assessments provided for
herein shall commence as to all lots in each phase of the Project on the
first day of the month following the first conveyance of a lot in each
respective phase of the Project. The first annual assessment shall be
adjusted according to the number of months remaining in the calendar
year. Written notice of the annual assessment shall be sent to every
owner subject thereto. The Association shall, upon demand and for a
reasonable charge, furnish a certificate signed by an officer of the
Association setting forth whether the assessments on a specified lot
have been paid. A properly executed certificate of the Association as to
the status of assessments on a lot is binding upon the Association as of
the date of its issuance.
8. Nonpayment of Assessments; Recording of Lien:
If any assessment is not paid and received by the Association within
fifteen (15) days after the due date, an automatic late charge as
established by the Board of Directors (from time to time) may be
assessed for each month or fraction thereof from the due date until the
assessment and all late charges are paid. The Association may bring an
action at law against the owner personally obligated to pay the same, or
foreclose the lien against the lot.
The Board of Directors may cause to be recorded as
to any delinquent assessment in the office of the County Recorder of
Orange County, California, a Notice of Assessment Lien, which shall
state the amount of the assessment and such related charges as may be
authorized by this Declaration and the other governing documents, a
description of the lot against which the lien has been assessed, and the
name of the record or reputed owner of the lot. The notice shall be
signed by any director of the Association or by the Association's
managing agent. The assessment lien shall also be deemed to secure all
of the foregoing items which shall become due or incurred relative to
the lot subsequent to the recordation of the Notice of Assessment Lien
until the completion of the enforcement of the lien or the payment of
the full amount secured by the lien, or other satisfaction to be make in
connection therewith.
9. Subordination of the Lien to First Deeds of
Trust and First Mortgages; Notice of Default: The lien of the
assessments provided for herein shall be subordinate to the lien of any
first mortgage. Sale or transfer of any lot shall not affect the
assessment lien. However, the sale or transfer of any lot pursuant to
foreclosure of a first mortgage shall extinguish the lien of such
assessments as to payments which become due prior to such sale or
transfer except for claims for a share of such assessments or charges
resulting from a reallocation of such assessments or charges to all lots
including the mortgaged lot. No sale or transfer shall relieve such lot
from liability for any assessments thereafter becoming due or from the
lien thereof.
Where the mortgagee of a first mortgage of record
or other purchaser of a lot obtains title to the same as a result of
such a foreclosure, such acquirer of title, and its successor and
assigns, shall not be liable for the share of the common expenses or
assessments by the Association chargeable to such lot which became due
prior to the acquisition of title to such lot by such acquirer. However,
such unpaid share of common expenses or assessments shall be deemed to
be common expenses collectible from owners of all the lots, including
such acquirer, its successors and assigns.
Upon the written request of a holder of a first
mortgage encumbering a lot, the Association shall provide such holder
with written notification of any then existing default by the owner of
such lot in the performance of such owner's obligations under this
Declaration or the ByLaws if such default has remained uncured for a
period of thirty (30) days.
10. Priorities; Enforcement; Remedies: When a
notice of Assessment Lien on a lot has been recorded, such assessment
shall constitute a lien an such lot prior and superior to all other
liens except (a) all taxes, bonds, assessments and other levies which,
by law, would be superior thereto, and (b) the lien or charge of any
first mortgage.
Such lien may be enforced by sale by the
Association, its attorney, or by any other person authorized by the
Association to make the sale; provided, however, that no proceeding or
action shall be instituted to foreclose the lien, either judicially or
under the power of sale granted herein, until notice of intention to
proceed to foreclose the lien shall have been delivered by the Board of
Directors to the owner of the lot affected by the lien at least thirty
(30) days prior to the commencement of any such action or proceeding,
and such sale shall be conducted in accordance with the provisions of
Sections 2924-2924h of the California Civil Code applicable to the
exercise of powers of sale in mortgages and deeds of trust, or in any
other manner permitted by law.
The Association, acting on behalf of the owners,
shall have the power to bid for the lot at foreclosure sale and to
acquire and hold, lease, mortgage and convey the same. Suit to recover a
money judgment for unpaid common expenses, rent, and reasonable
attorneys’ fees and costs shall be maintainable without foreclosing or
waiving the lien securing the same.
Subject to the provisions of the ByLaws, the Board
may suspend the voting rights and right to use the recreational
facilities located on the Common Area of a member who is in default in
payment of any assessment.
ARTICLE V
RIGHTS AND OBLIGATIONS OF THE ASSOCIATION: MAINTENANCE
AND USE OF COMMON AREA
1. General: In addition to the duties and powers
enumerated elsewhere in this Declaration and in the other governing
documents, and without limiting the generality thereof, the Association
shall have the right, authority and obligation to:
a. Maintain, repair,
replace, restore, operate and manage all of the Common Area and all
facilities, improvements, furnishings, equipment and landscaping
thereon, and all property that may be acquired by the Association, and
establish an adequate reserve fund for repair, replacement and
restoration thereof. The Streets shall be maintained by the Association
in a manner consistent with the then minimum standards of the City of
Irvine.
b. Maintain, repair,
replace and restore the perimeter wall of the Project as shown on the
Plot Plan attached hereto as Exhibit A and by this reference made a part
hereof, including those portions which traverse any owner's lot, and
maintain, repair, replace and restore that portion of any owner's lot
lying outside of said perimeter wall and between the boundary of said
owner's lot(s). For purposes of clarity only, the portion of any owner's
lot lying outside the perimeter wall shall hereinafter be referred to as
the "Exclusive Use Area."
c. Obtain, for the benefit
of all of the lots all water, gas and electric service, refuse
collection, and janitorial service in connection with the Common Area.
d. Grant easements where
necessary for utilities, services and newer facilities over the Common
Area to serve the Common Area and the lots.
e. Secure, if available,
(i) appropriate fidelity bond coverage (naming the Association as
obligee) for any person or entity handling funds of the Association,
including, but nut limited to, employees of any manager or managing
agent; (ii) insurance for the protection of the Board of Directors and
the officers from personal liability in the management of the
Association's affairs; and (iii) such other policy or policies of
insurance as the Board of Directors deems necessary or desirable in
protecting the interest of the Association and its members.
f. Discharge by payment,
if necessary, any lien against the Common Area, and assess the cost
thereof to the member or members responsible for the existence of said
lien.
g. Adopt reasonable rules
not inconsistent with this Declaration relating to the use of the Common
Area, all facilities located thereon, and the conduct of owners and
their tenants and guests with respect to the Common Area.
2. Maintenance by Association of Common Area: The
Association shall maintain all portions of the Common Area and the
Exclusive Use Area of any owner's lot. In the event that the need for
maintenance or repair of any area subject to maintenance by the
Association is caused through the willful or negligent act of an owner
or any occupant of such owner's lot, or any guests of invitees of such
owner or occupant, the cost of such maintenance or repair in excess of
any insurance proceeds payable to the Association for such maintenance
or repair shall be added to and become a part of the assessment to which
such owner's lot is subject.
3. Use of Common Area by Declarant: At any time
prior to or after conveyance of the Common Area to the Association, as
originally defined and later expanded, Declarant shall have a
non-exclusive right to enter upon and use the Common Area for the
purposes of constructing, marketing, selling, leasing and/or
establishing the Project as a residential community. Such right shall
terminate on the date which is five (5) years from the date of
conveyance of the Common Area to the Association. Nothing in this
paragraph shall be deemed to limit the right to the Declarant or its
successors or assignee to enter upon any part of the Project pursuant to
the provisions of Article VIII, paragraph 13.
4. Delegation of Right to Use Common Area: An
owner may delegate (subject to the provisions of the governing
documents) his right to use the Common Area to those of his family or
tenants who reside upon the lot. An owner may permit guests to use the
Common Area, but the Association shall have the right to limit the
number of an owner's guests who may use any recreational facilities
which may be located on the Common Area, and to limit the days and hours
of such use.
ARTICLE VI
UTILITIES
1. Owner's Rights and Duties: The rights and
duties of the owners with respect to sanitary sewer, water, electricity
gas, telephone lines and facilities, and heating and air-conditioning
facilities shall be an follows:
a. Whenever sanitary
sewer, water, electricity, gas, television receiving, telephone lines or
connections, heating or air-conditioning conduits, ducts, or flues are
installed within the Project, which connections or any portion thereof
lie in or upon lots owned by other than the owner of a lot served by
said connections, the Association and affected owner shall have the
right, and are hereby granted an easement to the full extent necessary
therefor, to enter upon the lots or to have the utility companies enter
upon the lots in or upon which said connections or any portion thereof
lie, to repair, replace and generally maintain said connections as and
when necessary.
b. Whenever sanitary
sewer, water, electricity, gas, television receiving, telephone lines or
connections, heating or air-conditioning conduits, ducts, or flues are
installed within the Project which connections serve more than one lot,
the owner of each lot served by said connection shall be entitled to the
full use and enjoyment of such portions of said connections as service
his lot.
2. Association's Duties: The Association shall
maintain all utility installations located in the Common Area except for
those installations maintained by utility companies, public, private, or
municipal. The Association shall pay all charges for utilities supplied
to the Common Area.
ARTICLE VII
USE RESTRICTIONS
In addition to all of the covenants contained
herein, the use of the Project is subject to the following:
1. Lot Use: No lot shall be occupied or used for
other than single family residential purposes, and no trade or business
shall be conducted thereon, except that Declarant, its successors,
assigns, may use any lot or lots in the Project owner or Declarant for a
model site or sites, for display, and for sales and/or construction
offices during construction and development of the Project. Such right
shall terminate on the date which is five (5) years from the date of the
close of escrow for the first sale of a lot in the Project.
2. Nuisances: No noxious or offensive activities
shall be carried on upon any lot, or in any part of the Project, nor
shall anything be done thereon which may be or may become an annoyance
or a nuisance to or which may in any way interfere with the quiet
enjoyment of another owner of his respective lot, or which shall in any
way increase the rate of insurance for any part of the Project, or cause
any insurance policy to be cancelled or to cause refusal to renew the
same, or which will impair the structural integrity of any building.
3. Vehicle Restrictions: No trailer, camper, bus,
motorhome, house trailer, mobile home, commercial vehicle, truck (other
than standard size pickup truck), or similar vehicle, inoperable
automobile, boat or similar equipment shall be parked, stored or
permitted to remain upon any area within the Project, other than
temporarily (no more than twelve (12) hours in any (two (2) week period)
or completely within an enclosed garage, without the prior written
consent of the Board. Commercial vehicles shall not include sedans or
standard size pickup trucks which are used both for business and
personal use, provided that any signs or markings of a commercial nature
on such vehicles shall be unobtrusive and inoffensive as determined by
the Board. No noisy or smoky vehicles shall be operated on the Project.
No off-road and/or unlicensed motor vehicles shall be operated upon the
Project.
4. Signs: No signs shall be displayed to the
public view on any lots or on any portion of the Project unless such
signs are approved by the Board provided, however, that one "For Sale"
or "For Rent" sign of customary and reasonable dimensions and as
permitted by law may be displayed without approval of the Board.
5. Animals: No animals or birds or any kind shall
be raised, bred, or kept on any portion of the Project, except that no
more than two (2) usual and ordinary household pets such as dogs, cats,
birds, and the like, may be kept, provided that they are not kept, bred,
or maintained for any commercial purposes, and further provided they are
kept under reasonable control at all times. Notwithstanding the
foregoing, no pets may be kept on the Project which, in the
determination of the Board, result in an unreasonable annoyance to the
other lot owners. No pets shall be allowed in the Common Area except as
may be permitted by rules of the Board, and in no case shall a dog enter
the Common Area except while on a leash which is held by a person
capable of controlling the dog. Owners shall prevent their pets from
soiling all portions of the Common Area where other persons customarily
walk, and in the event a pet does soil a portion of the Common Area, the
owner or person in control of such pet shall immediately clean up after
the pet.
6. Garbage and Refuse Disposal: All rubbish, trash
and garbage shall be regularly removed and shall not be allowed to
accumulate upon any part of the Project. All trash, garbage and other
waste shall be kept in sanitary containers. All trash containers or
other equipment for the storage or disposal of such materials shall be
kept in a clean and sanitary condition. All equipment, woodpiles, or
storage piles shall be kept screened and concealed from view of other
lots, streets and the Common Area.
7. Radio and Television Antennas: No alteration to
or modification of the installed cable television system shall be
permitted. No owner shall construct or use an external radio or
television antenna without the prior written consent of the Board.
8. Right to Lease: The respective lots and
dwelling structures shall be used only as single family residences, and
shall not be rented for transient or hotel purposes. Transient or hotel
purposes are defined as rental for any period less than thirty (30) days
or any rental if the occupants of the lot are provided customary hotel
service such as room service for food and beverage, maid service,
furnishing laundry and linen, or bellboy service. Subject to the
foregoing restrictions, the owners of the respective lots shall have the
right to lease same provided that the lease is written, that it
expressly provides that the tenancy is made subject to the covenants,
conditions, restrictions, limitations and uses contained in this
Declaration, the Articles, ByLaws, and other rules and regulations of
the Board, and that it provides that any failure by the tenant to comply
with the terms of such documents shall be a default under the lease.
9. Architectural Review Committee: No exterior
portion of any dwelling structure, and no building, fence, wall
obstruction, balcony, screen, patio, patio cover, tent, awning, carport,
carport cover, improvement, or structure of any kind shall be commenced,
erected, decorated, painted, resurfaced or otherwise maintained upon any
part of the Project, nor shall any alteration or improvement of any kind
be made thereto until the same has been approved in writing by an
Architectural Review Committee("Committee") consisting of three (3)
persons. Declarant shall appoint all of the original persons on the
Committee and all replacements until the first anniversary of the
issuance of a public report for the Project. Declarant hereby reserves
the power to appoint a majority of the persons on the Committee until
ninety percent (90%) of all lots in the Project (as the Project may be
enlarged by the annexation of all or additional portions of the Real
Property) have been sold or until the fifth anniversary of the issuance
of the Final Subdivision Public Report for the first phase of the
Project, whichever first occurs. After the first anniversary of the
issuance of a Final Subdivision Public Report for the Project, the Board
shall have the power to appoint one person to the Committee until ninety
percent (90%) of all of the lots in the Project (as the Project may be
enlarged by the annexation of all or additional portions of the Real
Property) have been sold or until the fifth anniversary date of the
issuance of the final public report for the first phase of the Project,
whichever first occurs. Thereafter, the Board shall have the power to
appoint all of the persons on the Committee. Persons appointed to the
Committee by the Board shall be from the membership of the Association.
Persons appointed to the Committee by the Declarant need not be from the
membership of the Association.
Plans and specifications showing the nature, kind,
shape, color, size, materials and location of such improvements,
alterations, and the like shall be submitted in writing to the Committee
for approval as to quality of workmanship and design and harmony of
external design with existing structures, and as to location in relation
to surrounding structures, topography, and finish grade elevation. No
permission or approval shall be required to repaint in accordance with a
color scheme previously approved by the Committee, or to rebuild in
accordance with plans and specifications previously approved by the
Committee.
No landscaping of lots visible from the street or
from the Common Area shall be undertaken by any owner until plans and
specifications showing the nature, kind, shape, and location of the
materials shall have been submitted to and approved in writing by the
Committee.
Whenever any plans and specifications are
submitted in writing to the Committee pursuant to the provisions of this
paragraph, said plans and specifications will be deemed approved for the
purposes of this paragraph if the Committee fails to disapprove the
plans and specifications within thirty (30) days after the date of
receipt of such plans and specifications by the Committee.
Notwithstanding anything in this Declaration to
the contrary, Declarant is and shall be exempt from the architectural
controls and restrictions herein contained with regard to Declarant's
construction and development of the Project.
10. Clothes Lines: No exterior clothes lines shall
be erected or maintained on the Project and there shall be no outside
laundering or drying of clothes.
11. Power Equipment and Car Maintenance: No power
equipment, hobby shops, or car maintenance (other than emergency work)
shall be permitted on the Project except within the dwelling structure
or with prior written approval of the Board in the sole and absolute
discretion of the Board. In deciding whether to grant approval, the
Board shall consider the effects of noise, air pollution, dirt or
grease, fire hazard, interference with radio or television reception,
and similar objections.
12. Liability of Owners for Damage to Common Area:
The owner of each lot shall be liable to the Association for all damages
to the Common Area or improvements thereon caused by such owner or any
occupant of his lot, or such owner's or occupant's guests; provided,
however, that such owner shall not be responsible for that portion of
said damage, if any, covered by insurance, the proceeds of which are
payable to the Association. The amount for which such owner is
responsible shall be added to and become a part of the assessment to
which such owner's lot is subject.
13. Owners Not to Alter or Improve the Common
Area: No owner shall make or cause to be made any alteration or
improvement to the Common Area or remove any landscaping, structure,
furnishing or other object therefrom without the prior written consent
of the Board of Directors. Upon any violation of this Paragraph 13, the
Association may restore the affected portion of the Common Area to the
condition it was in immediately prior to the violation. The cost of such
restoration shall be paid by the owner responsible for the violation,
and shall be added to and become a part of the assessment to which such
owner's lot is subject.
14. No Temporary Structures: No structure of a
temporary character, tent, shack, garage, or other outbuilding shall be
used on the Project at any time as a residence, either temporarily or
permanently.
15. No Oil, Quarrying, or Mining Operations: No
oil drilling, oil development operations, oil refining, quarrying, or
mining operations of any kind shall be permitted upon the Project, nor
shall oil wells, tanks, tunnels, or mineral excavations or shafts be
permitted upon the Project. No derrick or other structure designed for
use in boring for oil or natural gas shall be erected, maintained, or
permitted upon the Project.
16. Water Run-off: No lot shall be improved or
altered by any structure, fence, wall, planting or landscaping which
will significantly alter the established drainage pattern of the lot.
The established drainage pattern is defined as the drainage pattern
established after finish grading and landscaping are completed by
Declarant.
17. No Resubdivision: No lot may be further
resubdivided.
ARTICLE VIII
GENERAL PROVISIONS
1. Enforcement: The Association, or any owner,
shall have the right to enforce, by any proceeding at law or in equity,
all restrictions, conditions, covenants, reservations, liens, and
charges now or hereafter imposed by the provisions of this Declaration
and the other governing documents, and in such action shall be entitled
to recover reasonable attorneys' fees and all costs. Failure of the
Association or any owner to enforce any covenant or restriction herein
contained shall in no event be deemed a waiver of the right to do so
thereafter.
2. Invalidly of any Provision: Should any
provision or portion of this Declaration be declared invalid or in
conflict with any law of the jurisdiction where the Project is situated,
the validity of all other provisions and portions hereof shall remain
unaffected and in full force and effect.
3. Term: The covenants and restrictions of this
Declaration shall run with and bind the Project and all parts thereof,
and shall inure to the benefit of and shall be enforceable by the
Association or the owner of any lot subject to this Declaration, their
respective legal representatives, heirs, successors and assigns for a
term of thirty (30) years from the date this Declaration is recorded,
after which time they shall be automatically extended for successive
periods of ten (10) years, unless an instrument in writing, signed by
the owners of a majority of the lots and by seventy-five percent (75%)
of the holders of first mortgages of the lots, has been recorded within
the year preceding the beginning of each successive ten (10) year
extension, agreeing to change the Declaration in whole or in part, or to
terminate the same.
4. Amendments: Except as provided in the foregoing
paragraph, this Declaration may be amended only by the written consent
of at least seventy-five percent (75%) of the votes entitled to be cast
by each class of members; provided, however, that Declarant reserves the
right to unilaterally, without consent of the members, amend this
Declaration at any time in order to conform the Declaration to the
requirements of the Federal Home Loan Mortgage Corporation or the
Federal National Mortgage Association. Any amendment must be recorded
and shall become effective upon being recorded in the Office of the
County Recorder of Orange County.
No amendment decreasing the Association's rights
and obligations of maintenance of the Common Area of the Project shall
become effective unless and until approved in writing by the Director of
Community Development and the City Attorney of the City of Irvine and
such approval shall be recorded in the Office of the County Recorder of
the County of Orange. Such approval shall not be unreasonably withheld.
5. Encroachment Easements: Each owner of a lot
within the Project is hereby declared to have an easement over all
adjoining lots and the Common Area and facilities for the purpose of
accommodating any encroachment due to engineering errors, errors in
original construction, reconstruction, repair, settlement or shifting or
movement of a dwelling structure or of the Real Property (as the same
may be expanded through annexation), or any other similar cause. There
shall be easements for the maintenance of said encroachments as long as
they shall exist, and the rights and obligations of owners shall not be
altered in any way by said encroachment, settlement of 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 the willful misconduct of said owner or owners.
6. Exclusive Use Easements: Declarant hereby
reserves for the benefit of itself and its successors in interest, with
the right to convey the same, to the Association, an exclusive easement
over and across that portion of any owner's lot referred to herein as
the Exclusive Use Area, for the purpose of constructing, reconstructing,
maintaining and repairing the perimeter wall of the Project and the
Exclusive Use Area(s).
7. Owner's Right and Obligation to Maintain and
Repair: Each owner shall, at his sole cost and expense, maintain and
repair in good condition his lot and the dwelling structure thereon,
except that portion of his lot known as the Exclusive Use Area. This
obligation shall include, without limitation, maintenance and repair of
the foundation, walls, doors, windows, roof, and exterior surfaces of
the dwelling structure, and all plumbing, electrical, heating, air
conditioning and other utility systems serving the lot and located
anywhere upon the lot, and all portions of the yard area of his lot and
any improvements made thereto, except the Exclusive Use Area.
8. Entry for Repairs: Upon consent of the owner,
which consent shall not be unreasonably withheld, the Association or its
agents may enter upon any lot when necessary in connection with any
maintenance, landscaping or construction for which the Association is
responsible; provided, however, that such consent shall not be required
in connection with construction, maintenance, or emergency repair for
the benefit of the Common Area or the owners in common or for the
maintenance and repair of the Project's perimeter wall and the Exclusive
Use Area of a lot. Such entry shall be made with as little inconvenience
to the owner as practicable, and any damage caused by such entry shall
be repaired by the Association at the expense of the Association.
9. Damage or Destruction to Dwelling Structures:
In the event of damage or destruction to any dwelling structure on a
lot, the owner thereof shall elect one of the following two
alternatives: (1) the owner shall reconstruct the same as soon as
reasonably practicable and substantially in accordance with the original
plans and specifications therefor; provided, however, that any such
owner may reconstruct or repair his dwelling structure pursuant to new
or changed plans and specifications if such plans and specifications are
approved by the Board of Directors or Architectural Review Committeein
the manner set forth in Article VII, Paragraph 9; or (2) the owner
shall, with the prior written consent of the Board of Directors or the
Architectural Review Committee(which consent shall not be unreasonably
withheld), maintain the lot in good condition in an unimproved state;
provided, however, that at all times and whether the owner elects
alternative (1) or (2) above, the owner is and shall be responsible for
his full share of all assessments against the lot.
10. Damage or Destruction to Common Area: In the
event of damage or destruction of the Common Area or facilities thereon,
and the available proceeds from the insurance policy or policies then in
force are sufficient to totally cover the cost of repair and replacement
to a substantially similar configuration, upon the affirmative vote of a
majority of the owners, the Board of Directors shall promptly cause the
repair or replacement to take place. However, should the available
proceeds from the insurance policy or policies be inadequate to cover
the aforementioned costs, then a special assessment to provide the
requisite additional funds may he levied pursuant to Article IV,
Paragraph 5 of this Declaration, and the repair or replacement shall
only then take place. There shall be no use of hazard insurance proceeds
for losses to any Common Area, or the facilities constructed thereon, or
other property owned by the Association, for purposes other than the
repair, replacement, or reconstruction of such property with the prior
written approval of at least seventy-five percent (75%) of the holders
of first mortgages on the lots (based upon one (1) vote for each first
mortgage owned) or of the owners (other than Declarant). Unless the
written consent of the Planning Director and City Attorney of the City
of Irvine is first obtained, it shall be the obligation of the
Association and each of the owners to rebuild the Streets, and private
drainage facilities and utilities, if any, to the extent required as a
condition of approval of the development of the Project by the City of
Irvine, and private parks, open space and trails to the extent such
areas have been accepted by the City of Irvine in lieu of the payment of
fees pursuant to provisions of the Subdivision Map Act and the City's
Subdivision Ordinance.
11. Condemnation of a Lot: In the event of a
condemnation of eminent domain proceeding against a lot or any portion
thereof or facilities thereon, the owner (and any holder of a first
mortgage on the lot) shall he entitled to receive the award for such
taking as their interests may appear.
12. Condemnation of Common Area: In the event of a
condemnation of eminent domain proceeding against the Common Area or any
portion thereof or facilities thereon, the condemnation award shall be
distributed among the owners of the Project with each owner receiving
that portion of the award equal to the number of lots owned by the owner
divided by the total number of lots in the Project which quotient shall
then be multiplied by the total award.
13. Limitation of Restrictions on Declarant:
Declarant is undertaking to establish residential housing and incidental
improvements upon the Project. The completion of that work and the sale,
rental, and other disposal of the lots is essential to the establishment
and welfare of the Project as a residential community. In order that
said work my be completed and the Project be established as a fully
occupied residential community as rapidly as possible, nothing in this
Declaration shall be understood or construed to:
a. Prevent Declarant, its
contractors, or subcontractors (and any assignee developer replacing
Declarant in development of the Project or any phase) from doing on any
phase of the Project, the Common Area or any lot, whatever in
Declarant's (or such assignee developer's) sole discretion is
appropriate in connection with the completion of said work, including
but not limited to use of all streets, traffic control, blocking Streets
(so long as owners have other access to their lots and public streets
located outside of the Project); or
b. Prevent Declarant or
its representatives from erecting, constructing or maintaining on any
part or parts of the Project, including the Common Area, such structures
as may be reasonable and necessary for the conduct of its business of
completing said work and establishing said Project as a residential
community and marketing the lots; or
c. Prevent Declarant from
conducting on any part of its Project, including the Common Area, its
business of completing said work, and of establishing a plan of lot
ownership; or
d. Prevent Declarant from
maintaining such sign or signs on any parts of the Project including but
not limited to the Common Area as may be necessary in the sole
discretion of Declarant.
So long as Declarant, its successors and assigns,
owns one or more of the lots established and described herein,
Declarant, its successors and assigns, shall not be subject to the
provisions of this Declaration as such provisions may interfere with the
original development and sale of the Project or any phase.
14. Owners' Compliance: Each owner, tenant or
occupant of a lot shall comply with the provisions of this Declaration,
the Articles, ByLaws, and decisions, resolutions, rules and regulations
of the Association or its duly authorized representative, as lawfully
amended from time to time, and failure to comply with any such
provisions, decisions, resolutions, rules or regulations shall
constitute the basis for an action to recover sums due for damages, or
for injunctive relief, including reasonable attorneys' fees and all
costs.
All Agreements and determinations lawfully made by
the Association in accordance with the voting percentages established in
this Declaration or in the Articles or ByLaws shall be deemed to be
binding on all owners of lots, their successors and assigns.
15. Taxes: Except for those Lots owned by
Declarant, all taxes assessed against lots shall be paid before
delinquency by the owner of the lot against which the assessment is
made. All taxes assessed against the Common Area or against other
property owned by the Association shall be paid for out of annual
assessments and, if necessary, a special assessment may be levied (in
the manner set forth in Article IV, Paragraph 5) against the lots in an
amount equal to said taxes.
16. Notices: Except as may otherwise be provided
by specific provisions of this Declaration, the Articles, or the ByLaws,
any notice permitted or required by this Declaration, the Articles, or
the ByLaws, may be delivered either personally or by mail. If delivery
is by mail, it shall be deemed to have been delivered forty-eight (48)
hours after a copy of the same has been deposited in the United States
mail, postage prepaid, addressed to the person at the current address
given by such person to the secretary of the Association or addressed to
the lot of such person if no address has been given to the secretary.
17. Amendment and Granting of Easements: Declarant
shall have the absolute right and power, at any time, to enter into any
written agreement with the County of Orange, changing the location of
any of the easements to the County of Orange or other governmental or
public agencies or utilities, in connection with the development and/or
improvement of the Project, or any portion or portions thereof. Each
owner hereby appoints Declarant as his attorney-in-fact for the purposes
of effecting such change, and also for the purposes of granting
easements affecting the Project to other governmental or public agencies
or utilities in connection with the development and/or improvement of
the Project; the power herein granted Declarant shall be and is a power
coupled with an interest.
18. Exemption: All properties owned by a public
agency shall be exempt from the provisions of this Declaration and the
assessments created herein.
19. Federal Home Loan Mortgage Corporation
("FHLMC") Requirements: For purposes of this paragraph, the holder of a
first mortgage is referred to as a "first mortgagee." Notwithstanding
anything to the contrary in this Declaration or any other governing
documents, the following provisions shall control:
a. Any "right of first
refusal" which may be contained in the governing documents shall not
impair the right of a first mortgagee to:
(1) foreclose or take title to a lot pursuant to the remedies
provided in the first mortgage;
(2) accept a deed (or assignment) in lieu of foreclosure in
the event of default by a mortgagor; or
(3) sell or lease a lot acquired by the first mortgagee.
b. A first mortgagee who
obtains title to a lot pursuant to the remedies provided in a first
mortgage or foreclosure of a first mortgage shall not be liable for such
lot's unpaid dues or charges which accrue prior to the acquisition of
title to such lot by the first mortgagee. However, such unpaid dues or
charges shall be deemed to be common expenses collectible from all of
the lot owners, including such first mortgagee, its successors and
assigns.
c. Except in the case of
any greater percentage required by other provisions of this Declaration,
the Association shall not be entitled to do any of the following without
the prior written approval of at least seventy-five percent (75%) of the
first mortgagees (based on one vote for each first mortgage owned) or
owners (other than the Declarant) of the individual lots:
(1) By act or omission, seek to abandon, partition,
subdivide, encumber, sell or transfer the Common Area owned,
directly or indirectly, by the Association. (The granting of
easements for public utilities or for other public purposes
consistent with the intended use of the Common Area by the
Association shall not be deemed a transfer within the meaning of
this subparagraph.);
(2) Change the method of determining the obligations,
assessments, dues or other charges which may be levied against a
lot owner;
(3) By act or omission, change, waive or abandon any scheme
of regulations, or enforcement thereof, pertaining to the
architectural design or exterior appearance of units, the
exterior maintenance of units, the maintenance of the Common
Area walkways, fences, driveways, and landscaping upkeep;
(4) Fail to maintain fire and extended coverage insurance on
insurable Common Area on a current replacement cost basis in an
amount as near as possible not less than one hundred percent
(100%) of the insurable value (based on current replacement
cost); and
(5) Use hazard insurance proceeds for losses to any Common
Area for other than the repair, replacement or reconstruction of
such Common Area.
d. First mortgagees of
lots may, jointly or singly, pay taxes or other charges which are in
default and which may or have become a charge against any part of the
Common n Area. First mortgagees may also pay overdue premiums on hazard
insurance policies or secure new hazard insurance overage on the lapse
of a policy, for such Common Area. First mortgagees making such payments
shall be entitled to immediate reimbursement therefor from the
Association.
e. If insurance proceeds
or condemnation awards for losses to or taking of lots or the Common
Area are paid to lot owners, the first mortgagee of a lot shall be
entitled to receipt of such proceeds to the extent of the amount due the
first mortgagee under the first mortgage of such lot, and the balance
shall be paid to the persons legally entitled thereto.
f. Assessments shall
include an adequate reserve for maintenance, repairs and replacements of
portions of the Common Area that must be replaced on a periodic basis,
and such reserve shall be funded from regular (and not special)
assessments.
g. Upon request, a first
mortgagee is entitled to written notification from the Association of
any default in the performance by the individual lot mortgagor of any
obligation under the governing documents which is not cured within
thirty (30) days from the date of such default.
h. Any agreement for
professional maintenance of the Project, or any other contract providing
for services by the Declarant, shall not exceed a term of three (3)
years, subject to shorter maximum terms as may otherwise be specified in
the governing documents. Any such agreement must also provide for
termination by either party without cause or payment of a termination
fee on ninety (90) days or less written notice.
IN WITNESS WHEREOF, the undersigned, being the Declarant herein, has
executed this Declaration this 10th day of October, 1979.
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