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2006 Codorniz Maintenance Association CCR's Recorded:::°::::9r::2:::;e:eE§m' we mt been comifi-Raw .-min Ongmat.‘ GALLAGHER &MOORE Frederick C.Moore,Esq. 2 Park Plaza,Suite 300 Irvine,California 92614 §3‘=’5*«'5‘°'*-3‘¥‘i%.&OOIdEr ',RR:I:REsDe OODNW,e;Aw=r;sRNs,A DEOLA .ATION OF COVENANTS,CONDITIONS BAND RESTRICTIONS,AND RESERVATION OF EASEMENTS FOR CQDDRNIZU A Residential Planned Development Project NOTE:.‘AS MORE FDLLYUDESCRIBED IN THIS DECLARATION OR OTHERWISEA PROVIDED BY DECLARANT,I IN THE EVENT ‘OF ANY DISPUTE(S)ARISING I-IEREUNDER,OR RELATING TO THE DESIGN AND/OR‘CONSTRUCTION OF THE PROJECT:SUCH DISPUTE(S)SHALL -BE SUBMITTED TO A NONADVERSARIAL PROCEDURE AND IF NOT RESOLVED,SUBMITTED THEREAFTER TO AN ALTERNATIVE DISPUTE RESOLUTION PROCEDURE,"AND AS A RESULT THEREOF,SUCH DIS- PUTE(S)WILL NOT‘BE LITIGATED IN A COURT BEFORE A JURY.ANY PERSON PURCHASING IN THIS DEVELOPMENT KNOWINGLY AND VOLUNTARILY AGREES TO BE" BOUND BY A PROCEDURE WHICH DOES NOT INCLUDE A RIGHT To A JURY. IF THIS PROCEDURE IS UNACCEPTABLE,AN INDIVIDUAL OR ENTITY SHOULD NOT PURCHASE IN THIS PROJECT.I ‘. -'1""—"—Il..1______‘_'_____"_"-'_‘—“ ARTICLE I u:m~4oxm+puam+» IARTICLEIII ‘m~40\ uwptunjw S0O76.0U3—l1492.FCM 031406 ‘GNMA TABLE OF CONTENTS ‘DEFINITIONS Annexation Property .... Architectural Review Committee Architectural Guidelines ;......-.. Articles 7 .-A Assessments .'. Association Association Walls ..... Best Management Practices or BMPS Board I I By—Laws ..,.......... City ....;.-........l....W . Common Area ................ Common Expenses ....‘ County '. Ueclarant Declaration ............ DRE ....'......,...... Entitlements From City .-...... FHLMC ...t..;.'........ FNMA _......,.v.......; Include,Including ........; .. Improvements ............ Lot _.P...-'.; Maintain,Maintenance ........t.. Maintenance Guidelines;Maintenance Manual; Maintenance Recommendations a Member ...,.... Mortgage .......,'...... Mortgages .......,i....... Mortgagor................ Notice and Hearin ....... Notice of Annexation downer .,..P......... Phase ......... Project ........t. Property a,........i. tResidence '.. Rules and Regulations ..,...... VA/FHA .....;...;.-..t.. Water Quality Management Plans «....... Interpretation ...v t GENERAL PLAN OF DEVELOPMENT‘ Introduction .......... Description of Common Area ..'..;.. Membership in the.Association ... Annexation of Subsequent Phases ... Declarant's Use of Private Streets and Utilitiest ...'..t..'.;}'... Declarant’s Control of Development . Irrevocable Limited Power of Attorney .. Mortgage Interest and Other Encumbrances to Take Subject to Power of Attorney . (i) W kounwxouawko mmnuamcnaam-4~Jq-4»Jmcno\mLn¢=a,so:wLun;w 12 12 12 12 13 13 13 l5 l7 ARTICLE III 9. O\.U7I-Ii-UJIUI-‘ ARTICLE Iv ujcn mJCh¢J1#3 uabara ARTICLE vi _03U'1|-l3hLzJ[\JI—‘ 9} 10. 11. 12; .13. 14. 15. I6.’ 17. isoo75.oo3—11492.ECM 031406 Non—Liabi1ity of Declarant RESERVATION OF EASEMENTS AND OTHERPROPERTYRIGHTSINTHECOMMONAREA . Owners’Easements .......- Limitations on Owners’Easement Rights Easements for Common Fences .... Delegation of Common Area Use Rights Easements for Public Services ..... Easements for Community Cable Television, Telecommunication Systems and Alarm System Cabling .....'........ Easements Over Sidewalks .. Easements for Encroachments .. Common Area Wall Easements -..._. Easements for Utilities ....§... .. Easements for Maintenance of the Common.Area2EasementsforClusteredMailboxes Easements for Drainage .. tEasement for Area Drains Easements to the City .....;...N.. Easements for Construction and Sales ..... Reservation of Construction Rights by Declarant Title to the Common Area .....;. Reservation of Common Area Easements . Easements Set Forth on Final Tract Maps and in Other Recorded Documents ..-... O O THE_AssOCIATION Membership ,...g..... Voting Rights ... ispecial Voting Procedures Eor Appointment to the Board m ....... vesting of Voting Rights ..... . Adjustment of Voting Rights‘..... Suspension of Voting Rights ... Transfer ........'. Record Dates .... Notices .......-.._ POWERS AND DUTIES OF THE ASSOCIATION Management Body ...'., Powers 1 ..... Duties’...'...... Discretionary Powers .......=.. Alternative Dispute Resolution Provisions Special Meeting of the Association for Construction Defect Disputes ....... Repair of willful Damage to Common Area Delegations of Duties '...2 . Right of Entry for Emergency m'Right of Entry for Repairs Limitations on Board Action ..... Licenses,Easements and Rights—of—Way New Improvements 1.......... Association Rules and Regulationsr Nonliability and Indemnification (ii) 17 17 17 17 19 20 20' 20 21 21 221 22 23 23 24 24 25 25 25- 26p28 28 .28 28,28 29 30 30 3030 30 31 31 231 31 34 42 43 55 56A 56 56"156- 56 58 58 59 59 ARTICLE VI.ASSESSMENTS ....;.......g . 1.Creation of the Lien and Personal Obligation'of Assessments ..........-.. 2.Purpose of Regular Assessments:Levy and Collection ... .....1...... 3.Regular Assessments -Basis ..d...... 4.Special Assessments for Capital Improvements 5.Compliance Assessments‘A 6.Special Benefit Assessments ..g..... 7.Date of Commencement of Regular.Assessments: Due Dates . 8.Model Homes ...... 9.Icollection of Assessments . 10;Notice of Increase in Assessments 611.Certification of Payment‘ 12.Delivery by Owner .“13.Delivery of Statement 14.Delivery by Declarant 15.Reserves ............._... 16.Offsets and-Waiver Prohibited ..e... 17;Exempt Property - _—ARTICLE VII 1. Gim+bbJN ARTICLE VIII KO G)~d GWLN ¢-Udtfl F’ 50076.0D3-11492.FCM 031406 EFFECT OF NONPAYMENT OF ASSESSMENTS: REMEDIES OF THE ASSOCIATION....1.. Effect of Nonpayment of Assessments:Remedies of the Association ........ Notice of Delinquent Assessments Foreclosure Sale ..,......,., Curing of Default ..'......6.(x; Cumulative Remedies?I..-..... ;.I Mortgagee Protection .. USE RESTRICTIONS Private Residential Dwelling Common Area Use ....1. Conduct Affecting Insurance sLiabi1ity for Damage .....J .: .Signs ...1 ..7.... Maintenance of Animals Quiet Enjoyment Grading/Irrigation Structural Changes L ilmprovements ..y ......... Post Tension Slab Windows .... Commercial Activity .Parking Compliance With Management Documents Dec1arant’s Improvements ~ Solar Heating ... Antennas .... Leasing .-......... Drilling ,...6 Trash .A . Drainage .........g....... Prohibition Against Further Subdivision Yards and Decks (iii) 61 61 62 62 64 65 66 665757 68686868 69' 69 69 69 70 70 71' '1..L..71 71 71 72 72_72 72 72 73 73 74 74 74' 74 75. 76 76 77 78 78 78 78 79 79. 79 80 80 80 ARTICLE IX. .ARTICLE X ARTICLE_XI ARTICLE XII ARTICLE XIII 50076 .003-11492.1-"CM 031406 mtnmawvaw gamtn enpnsw 25.Exemption of Declarant .......... 26.No Easements for View Purposes;Disclaimer 2?,Pollutant Control ...._.. 28.Paired Homes ......... ARCHITECTURAL REVIEW —APPROVAL Exemptions From Architectural Review ... Architectural Review ....c.~ Architectural Review Committee -.....p.. Meetings of the Architectural Review Committee .Architectural Standards/Guidelines ..... .Architectural Approval -Review of Plans and Specifications ..,............. 7.Decisions of the Architectural Review Committee 8.Submittal to City -Right of Architectural Review Committee to Review .......L 9.Approval of City .......c....... I0.Conflicts Between-City and Architectural Review Committee ...-......A 11.No Waiver of Future Approvals . 12.Compensation of Members .....p.... 13.Variances L......V... 14.Inspection of Work ............A.. I5.Non—Liability of Architectural Review Committee Members ..... ...... 16.Appeal ..7 .....'.... C O Q U I I OREPAIRANDMAINTENANCE...... Repair and Maintenance by Association Maintenance Manual ...... Project Inspections ......t...... Maintenance of Phases Subject to Construction Easement ............... Repair and Maintenance by Lot Owners . Maintenance of Public Utilities ....... Damage and Destruction Affecting a Residence — W Duty to Rebuild ............%. 8.,Owners’Cooperation for Maintenance ... 90 Levy of Compliance Assessments ENVIRONMENTAL AND OTHER DISCLOSURESANDREQUIREMENTS'..-..¢.... 1.Environmental Requirements .....-..'. DAMAGE OR DESTRUCTION TO THE COMMON_AREA . 1.Restoration of Damaged Common Area .0,.. 2.Election by Owners Not to Restore Damaged Common Area ..I ' '3.Retention of Excess Insurance Proceeds in General Fund 5-..._.....,. CONDEMNATION- 1%Distribution of Awards -Common Areal .. 2.Board of Directors as Attorney—in—Fact (iv) 80 82 83 89 89 90 90 91 91 92 93 94 94- 94C95 95A 95 95 96 96 96 96 98 100 100 101 102 ‘l02 102 ‘i102 103 _l03 104 104 105 'l05C _106 106 106 1 ARTICLE XIV ,ARTICLE XVI ARTICLE XIx 1.Covenant Against Partition ARTICLE XV INSURANCE . 1.Required Insurance Coverage 2.Optional Insurance Coverage .. 3.Notice of Cancellation of Insurance 4.Review of Coverage -.2.'5.Waiver by Owners ........ 6.Premiums,Proceeds and Settlement _ 7.Rights and Duties of Owners to Insure 8.Trustee_for Policies ...L 9.Mortgage Clause .-..~............ ‘IO.Compliance with Requirements of FHLMC,FNMA,and VA/FHA ...'...............'. 11.Required Waiver ........ 12.Annual Notification of Insurance 1. 2. 3. ARTICLE XVII -1. "COVENANT AGAINST PARTITION‘ MORTGAGEE PROTECTION . Mortgagee Protection Provisions Violation of Mortgagee Protection~Provis Amendments to Conform With Mortgages Requirements ENFORCEMENT OF BONDED OBLIGATIONS Enforcement of Bonded Obligations ARTICLE XVIII ANNEXATION OF ADDITIONAL PROPERTY mtnsimtnnuwross m~4o»m.bLJm+= S0076 .003-114392 .FCM 931406 Development of the Project Annexation Pursuant to Approval Notice of Annexation .... Effective Date of Annexation Right of De—Annexation ... Q Amendments to Notice of Annexation Parties to Notice of Annexation GENERAL PROVISIONS Declarant’s Representative Enforcement ' iseverability. Term ............ Construction ...... Singular Includes Plural Amendments ... Encroachments . Notices .....,. Attorneys’Fees .. tmergers or Consolidations No Representations or Warranties Project Disclosuresp Davis~Stirling Act ... Conflicts in Management Documents For the Project Declarant's Duty to Convey Lot 143 A .{v) 105 106 106 »106 $108 108 108 108 108 109 109 109 110 110 111 .111 ‘111 115 115 115 115 I ..........116‘ g Annexation Pursuant to General Plan of Developmentll7 117 117117. 118 -118 118 119 .119 119 121 121 121‘ 121 121 124 125 125 125 125 126 127 127 128 EXHIBITS: -Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit Exhibit C—I|-imC]’TJtr1 UOUJID‘ o 17.ifixhibits ...-........8,......'128 18.Civil Code Section 895 et seq..,..%....128 Landscape Maintenance Areas (Front Yards-and Parkways) Annexation Property ' Walls and Fences Structural BMPS,Concrete Drainage Swales and other Storm Drainage Facilities to be Maintained by Association Paired Homes '- Not.Applicable. Not Applicable« Civil Code Section 895 et seq. Disclaimer and Waiver of Warranties and Other Rights Home Builder’s and Common Area Warranty So07s.co3-11492.FcM 031405 (‘fl) DECLARATION OF COVENANTS,CONDITIONS »AND RESTRICTIONS,AND RESERVATION OF EASEMENTS FOR CODORNIZ THIS DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS, AND RESERVATION OF EASEMENTS is made this 4th day of November,2005, by RJT HOMES —CODORNIZ,LLC,an Arizona limited liability company ("Declarant")-’o I r_,i.Ias.s_ss:1..:a=. A.Declarant is the owner of that certain real property located "in the City of La Quinta,County'of Riverside,State of California,more particularly described as follows: Lots 34 through 46,inclusive,of Tract 32070,as shown on "a Map,recorded in Book 392,Pages 60 to 70,inclusive,of Maps,Office of the Riverside County Recorder.'R (hereinafter-collectively referred to as the "Lots")l -E. T Declarant iseiuxithe owner of that certain.real prop- erty located in the City of La Quinta,County of Riverside,State of California,more particularly described as follows: Lots A,B,M5:0 of Tract"32070,as shown on a Map, recorded in Book 392,Pages 60 to 70,inclusive,of Maps, Office of the Riverside County Recorder;and \ Nonexclusive easements for landscape maintenance,irriga- tion,drainage,ingress,egress and access in,on,over, under,across and through those portions of the Lots and real.propertyr outside tn?the iProject.described:and/or _depicted on Exhibit‘?V'attached hereto and.incorporated.by reference.'.‘,E (hereinafter referred to as the “Common Area").The Lots and the 'Common.Area are hereinafter sometimes collectively referred.to as the “Property.” ‘C.ii Declarant isalsoi the owner of that certain re_al property located in the City of La Quinta,County of Riverside,State of California,more particularly described in Exhibit "B"attached hereto ("Annexation Property"),which may,from time to time,be. annexed to and become part of the Project {as hereinafter defined), in accordance with the provisions herein,including the Article entitled "Annexation of Additional Property." 50076.003 -11492 IFCM 0314‘O5 D.Declarant desires to develop the Property as a common interest development,more particularly described in Section l35l(k) of the California Civil Code as a "planned development"(hereinafter referred to as the "Project"),consisting of single-family homes and other improvements,as more fully described below. E.Declarant anticipates that the Annexation Property. will also be developed as a "planned development,"consisting of single—family homes and other improvements;however,development of the Project shall,if applicable,also be consistent with the overall plan of development submitted to and approved by the Department of Veteran Affairs and/or the Federal Housing Administration (herein- after referred to as the "VA/FHA”). F.Declarant deems it desirable to impose a general plan for“the:development,maintenance,improvement,protection,use, occupancy,and enjoyment.of the Project,and to establish,adopt,and _ impose covenants,conditions,and restrictions upon the Project for the purpose of enforcing,protecting,and‘preserving the value, desirability,and attractiveness of the Project. G."Declarant deems it desirable for the efficient en- forcement,protection.and.preservaticm1of the value,desirability and attractiveness of the Project to create a corporation which shall be delegated and assigned the powers of administering and enforcing said covenants,conditions and restrictions.-- i‘tH.-The.Codorniz Maintenance Association,51 California nonprofit,mutual benefit corporation,has been or will be incor- 'porated under the laws of the State of California for the purpose of exercising the aforesaid powers. I._Declarant intends to convey the Property subject to the covenants,conditions,and restrictions set forth hereinbelow. NOW,THEREFORE,Declarant agrees and declares that it has' established,and does hereby establish,a plan for the development, ‘maintenance,protection,improvement,use,occupancy,and enjoyment 50075.003 -11492.FCM 0314.06 of the Project,and has fixed,and does hereby fix,the covenants, conditions, restrictions,easements, reservations,equitable servitudes,liens,and charges (hereinafter collectively referred to as the “Protective Covenants")upon the Project.Each and all of the Protective Covenants shall run with the land,shall be enforceable, and shall inure to the benefit of and be binding upon Declarant,its successors and assigns,all subsequent owners of all or any portion. cn?the Project,together vdtfli their grantees,successors,heirs, executors,administrators,devisees,and assigns,and.may be_enforced by any Owner or the Association. .ARTICLE I DEFINITIONS Section 1."Annexation Property"shall mean and refer to that certain real property described in Exhibit "B"attached hereto (hereinafter referred to as WAnnexation Property"),including all Improvements {as defined below)constructed thereon,all or any portion of which may be annexed into the Project as set forth in_the Article herein entitled "Annexation of Additional Property."’ .Section 2."Architectural Review7Committee”shall mean rand refer ix:the architectural committee created pursuant to the Article herein entitled "Architectural Review —Approval." Section 3."Architectural Guidelines"shall mean and refer to those certain architectural standards,landscape standards and other general policies,procedures and criteria which may be adopted by the Board pursuant to this Declaration for use by the Architectural Review Committee in reviewing plans and specifications for proposed Inprovements to EH1 Owner's l@t.i The Architectural fGuidelines are general guidelines and may be amended from time to time by a majority of the Board.A copy of-the Architectural .Guidelines may be obtained from the Architectural Review Committee. ysection 4.'"Articles"shall mean and refer to the Ar- ticles of Incorporation of the Codorniz Maintenance Association,as filed in the Office of thersecretary of State of the Statzéeii of California,as such Articles may be amended,from time to time. Section 5."Assessments"shall 1x2_used as ea generic term which shall mean and refer to the following: ,'(a)"Reqular.Assessment"shall mean and refer to_an annual charge against each Owner and.his respective Lot rep- resenting a portion of the Common Expenses of the Association, This Regular Assessment shall also include an annual payment of‘ Two Hundred and Fifty Dollars ($250.00)for each Lot which.will' be adjusted every three (3)years as required by the City and shall be paid by the Association to -the City no later than January 15 of each applicable fiscal year.A .(b)"Compliance Assessment"shall mean and refer to the charge against an Owner representing ii)the costs incurred by the Association in the repair of any damage to the Common — Area or any Improvement for which the Association or an Owner (or any member of his/her family,or his/her guests,invitees, tenants or lessees)was responsible,.(ii)the costs incurred by the Association in bringing such Owner and his Lot into compli- ance with.this Declaration,(iii)any amount due the.Association SDG'?6.003-11492 .FCM 031405 based upon disciplinary proceedings against an Owner in accord: ance with this Declaration,and/or (iv)any amount due the Association to reimburse the Association for administrative costs attributable to an Owner as provided herein; (c)"Special Assessment"shall mean and refer to the charge against an Owner and his respective Lot representing a portion of the cost of reconstructing any damaged or destroyed portion or portions of the Common Area,of constructing or installing any capital improvements to the Common Area,or of taking any extraordinary action for the benefit of the Common - Area (e.g.,including but not limited to funding the reserve accounts)or the membership of the Association pursuant to the provisions of this Declaration;and - (d)"Special Benefit Assessment"shallrm%n1and.refer to a charge levied by the Association against an Owner and his respective Lot to cover the expenses incurred by the.Association jjlthe operation“maintenance,repair and/or fundingcflfreserves for a portion of the Project designated by Eeclarant or the Association as a "Special Benefit Area,"which expenses are P~allocable only to the Owners and their Lots within such an.Area. -Section 6. ' “Association”shall mean and refer to the Codorniz Maintenance Associat_ion,.a California nonprofit,mutual‘ benefit corporation,in which all Owners shall have a membership interest as more particularly described hereinbelow,provided that membership shall be limited to Owners. Section 7."Association Walls"shall meanenxirefer to those -certain‘walls,fences and pilasters,which were originally constructed by Declarant on the Common Area and/or a Lot which are designated herein,by the Declarant,by the Board,or in.a Notice of Annexation by Declarant to constitute Association Walls,and which will be maintained.in whole.or in part by the Association.as provided herein.The Association Walls presently anticipated for the Project are generally depicted_on Exhibit "C"attached hereto.The Associa4 tion ‘Walls located in a subsequent Phase will be depicted on an- Exhibit attached to the Notice of Annexation recorded on such Phase. All depictions of the.Association.Walls are for illustrative purposes only,and the "as—built"condition by Declarant shall be controlling; Maintenance of walls and fences in the Project,unless identified as an Association Wall on an exhibit to this Declaration or a Notice of Annexation,or by the Board,shall be maintained as a party wall in accordance with applicable standards under California law. Section 8.''"Best Management Practices"or "BMPs”shall‘ mean and refer to the criteria established by the State and the City to implement one or more Water Quality Management Plans to provide iappropriate stormwater pollution control during and after construc- 50076 -003-_1l-‘a‘92.FCM 031406 tion.The Best Management Practices may include structural BMPs, treatment control BMPs,and non—structural BMPs in order to prevent all pollutants from contacting storm water and keeping all products of erosion and pollution from moving off site into receiving waters, as required by the State Water Resources Control Board (SWRCB)and the National Pollutant Discharge Elimination System (NPDES).The structural Best Management Practices may include,without limitation, landscape jplanning,hillside landscaping,roof runoff controls, efficient irrigation technology,protect slopes and channels,storm drain signage,inlet trash racks,energy dissipators,_and trash storage areas and litter control constructed on the Common Area land/or portions of the Lots.-The treatment control BMPs may include flow~based treatment control BMPs (e.g,,vegetated buffer strips, vegetated swales,multiple systems,bioretentions,and hydrodynamic separator systems)and volume based treatment control BMPs (e.g.,wet. ponds,constructed.wetlands,extendedmdetentionfl basins,water quality» inlets,‘retention/irrigation,infiltration_basins,iinfiltration trenches,media filters,ands manufactured,proprietary devices) constructed on the Common.Area and/or portions of the Lots.The non- structural Best Management Practices generally require the.Associa+ tion and Owners tr>}ma aware of the sensitive natural environment surrounding the Project and to take appropriate action to control storm water runoff from the Project.The non-structural BMPS may include,without limitation,education of property owners,tenants, and other occupants,activity restrictions,spill contingency plans, employee training,education programs,sweeping of private streets and parking areas,and Common Area catch.basin inspection.-The Best'Management Practices are designed and intended to control.runoff and 5oov5.oo3a11492.FcM 031405 must be-implemented by the Association,Owners and other residents within the Project."Best Management Practices may vary within the Project,with the result that some Owners and other residents may be subject to more stringent Best Management Practices than Owners and other residents.The Best Management Practices may be modified from. time to time by the Declarant or any governmental agency.having appropriate jurisdiction over the Project,in order to control storm water runoff as the Project develops and runoff conditions change. Compliance with Best Management Practices,as they may be modified from time to time,may be monitored and enforced by any governmental agency havingvjurisdiction over the Project,including,without limitation,the City,County,Regional Water Quality Control Board,. land State Water Resources Board.~, Section 9. ‘."Board"shall mean and refer to the Board of_ Directors of the.Association,elected in accordance with the ByeLaws of the Association and this Declaration.'"i - Section 10."By—Laws"shall mean and refer to the Bye Laws of the Association which have been,or will be,adopted by the Board,as such By-Laws may be amended,from time to time. Section 11."Ci y"shall mean and refer to the City of La Quinta,California,a legal subdivision of the State of Califor- nia,and its various departments,divisions,employees,and.represen- tatives.. Section 12."Common Area"is used herein as a generic ‘tern1to mean and refer to:(a)all real and personal property,and to all Improvements thereon,which are owned by the.Association;and.(b) all real property,and Improvements thereon,over which the.Associa— tion has an easement (e.g.,the easement areas depicted on Exhibit "A,"if an}/);lease and/or which the Association is ‘otherwise responsible pursuant to this Declaration to-manage,control and/or’ maintain for the common use,benefit and enjoyment of all Owners in the Project.-If the Project is completed as proposed,the Common Area shall include,without limitation,landscaped maintenance areas (e.g.,for Phase 1,see Exhibit "A"),common recreational facilities (e.g.,recreation building,tennis courts,pool,spa,tot lot, benches,tables,trash receptacles,gazebos,barbecues,fountains, fireplaces),clustered mailboxes,Project perimeter walls and.fences, retaining walls,private storm drainage facilities (e.g.,see Exhibit "D"),private streets and.parking areas,Project’entry‘gates, monumentation,and lights,Common Area landscaping,and such other Improvements as may be designated,from time to time,and set forth in one (1)or more Notices of Annexation recorded in the Office of the County Recorder,pursuant to the.Article herein entitled."Annexa— tion of Additional Property.”Generally,the Common.Area in Phase 1 of the Project consists of that certain real.property described in Paragraph B of the recitals,together with thelmprovements and easements referenced herein (eggg,see as applicable,Exhibits "A," "C"and "D").Notwithstanding such exhibits,the maintenance obliga- tions for the Association shall commence only with respect to those areas which are within a DRE Phase where Assessments have commenced against the Lots located therein). I if Section 13."Common Expenses"shall mean and refer to the actual and_estimated costs to be paid by the.Association for the common benefit of all Owners of Lots in the Emtject.Empept as otherwise provided in this Declaration cn:;a subsequently recorded Notice of.Annexation4 the Common.Expenses shall include all costs and expenses incurred by_the Association in connection with the follow- img:(a)owning,neintaining,managing,operating,repairing and replacing the Common .Area;,(b)‘managing’and administering the Association,including,but not limited to,compensation paid by the Association to managers,accountants,attorneys,budget preparers, and other consultants,and any Association.employees;(c)all general office and administrative expenses incurred by the Architectural Review Committee;(d)providing utilities and other services to the Common Area,and,if not separately metered,to the Lots;(e) maintaining insurance coverage "and fidelity’bonds (and paying deductibles)as provided for herein;(f)paying that portion of any -63- 50076.003-1l452.FCM 031405 Assessment attributable to Common -Expenses not paid by the Owner responsible for payment;(g)paying taxes for the Association;(h) paying all reasonable out~of—pocket expenses actually incurred by the members of the Board of Directors and officers of the Association in performing their duties as provided herein (e.g.,postage and photocopying);(i)enforcing the provisions of the Declaration, Articles,By—Laws and Rules and-Regulations;and (j)paying for all .other goods and services as reasonably required.by the.Association to perform its powers and duties as set forth.herein..Additionally,the Common Expenses shall include adequate reserves,as the Board shall determine to be appropriate,for the repair and replacement of those ‘elements of the Common Area which must be repaired or replaced on a periodic basis,rather than on a regular annual basis.The Common Expenses do not include any actual or estimated costs to be paid by the Association for-those 'Improvements to the >Common Area which constitute Special Benefit Improvements and which are allocable as Special Benefit Expenses to the Owners of Lotswwithin tarspecial‘‘Benefit Area.,v y ,Ry ' Section 14."$ounty”shall mean and refer to the County of Riverside,California,a legal subdivision of the State of, California,and its various departments,divisions,employees,andi representatives. —Section 15."Declarant"shall mean and refer to RJT Ikfiflfis ~CODORNIZ,LLC,ani.Arizona limited liability company,its successors,and to any person or entity acquiring all of Declarant’s interest in the Project .(including all of Declarant"s rights ands obligations as created and established herein)pursuant to a written assignment from Declarant which is recorded in the ,Office of the County_Recorder. ,Section 16,“Declaration”shall mean and refer to this Declaration of Covenants,Conditions and Restrictions,and Reser- vation of Easements,and to all_amendments to this Declaration as'may, be recorded,from time to time,in the Office of the County'Recorder,, in accordance with Section 135l(h)and Section 1353 of the_California Civil Code;B - Section 17;"DRE"shall mean and refer to the Department of Real Estate of the State of California,which administers the sale ‘of subdivided lands pursuant to Sections 11000,g;seg.,of the California Business and Professions Code,or any similar California statute hereinafter enacted.*s .Section 18.‘"Entitlements From City"shall mean any and all-building permits and related.permits,conditions of approval,and all documents,instruments ‘orsimilar writings which regulate or relate to utilization of real property in the Project. 50076 .D03-11492 _.PCM 031406 Section 19."FHLMC"shall mean and refer to the Federal Home Loan Mortgage Corporation (The Mortgage Corporation)created by iTitle III of the Emergency Home Finance Act of 1970,as amended,from time to time,including any successors thereto. Section 20."FNMA"shall mean and refer to the Federal National Mortgage Association,a ,government—sponsored iprivate. corporation established pursuant to Title VIII of the Housing and Urban Development Act of 1968,as amended,from time to time, including any successors thereto. _Section 21."GNMA"shall mean and refer to the Govern~ ment National Mortgage Association administered by the United States Department of Housing and Urban Development,including any successors thereto." Section 22.."Include,Including"(whether capitalized or -not)shall mean "includes without limitation"and "including without .soo7a.oo3—11492-FcM o314oa_ rlimitation,"respectively. Section 23."Improvements"shall mean and refer to all structures and appurtenances thereto of every kind,including,but, not limited.to,Residences,street flights,buildings,awnings, shades,screens,screen doors,skylights,side yard and rear yard fencing,clustered mailboxes,swimming pools,spas,garages, pavement,driveways,walkways,parking areas,perimeter walls, retaining walls,flag poles,monument signs,yards,grading of a Lot or disturbing the existing grade in any manner,irrigation equipment and all related facilities,exterior air conditioning units,solar panels and related facilities,greenbelts,drainage swales,street- scapes,antennas and related facilities,common trash receptacles,if‘ any,exterior lighting and any landscaping whidh,.if left in its natural state,would grow to a height in excess of twenty~five feet (25’).L ’'I -R Section 24.""Lot"shall mean and refer to a plot of land, -which is separately described and numbered or lettered upon the recorded subdivision map(s)of the_Project or any recorded lot line adjustment,_and too all Improvements,including the Residence, constructed thereon.Only those plots of land which are designed and intended forrthe construction of a Residence and ownership by an individual Owner shall be deemed‘"Lots.""'Lot"-shallnot mean or refer to any plot of land owned in fee by the Association as Common }XIT3Ei.. Section 25."Maintain,Maintenance"(whether capitalized or not)shall mean "inspect,imaintain,repair and replace"and "maintenance,repairr and replacement,"respectively;provided, however,that "maintain?or "maintenance"shall not include inspec- tion,repair and replace(ment)where the context or specific language of this Declaration provides another meaning.A A ,Section 26."Maintenance Guidelines;.Maintenance Manual:Maintenance Recommendations”shall nean.enui refer to any current written guidelines,setting forth procedures and standards for the maintenance and operation of Common Area Improvements that may be provided to the Association by Declarant,the Association or any governmental agency or for the maintenance of a Lot and other Improvements Declarant has constructed on or,in the Project; Maintenance Guidelines include any"Maintenance Manual initially prepared at Declarant’s direction,and recommended inspections and maintenance activities for components of tire Common Area and any Maintenance Recommendations prepared by Eeclarant pertaining to a Lot. Section 27."Member"shall mean and refer to every per~ son or entity who holds membership in the Association,as more particularly set forth in the Article herein entitled "The Asso— ciation,V and shall be synonymous with the term "Owner.”i Section 28. W "Mortgage"shall meant and include any mortgage or deed of trust,or other conveyance of a Lot to secure the performance of an ctfligation,which conveyance will be reconveyed upon the completion of such performance,including an installment land sales contract (as defined in Sections 2985 through 2985.6 of the California Civil Code,as same may lxa amended,from time to time).The term "Deed of Trust,"when used herein,shall be synony+ mous with the term "Mortgage."" Section 29."Mortgages"shall mean.and'referln3s1personc or entity to whom a Mortgage is made,and shall include the benefi- ciary of a Deed of Trust or the vendor under an installment land sales contract,_as the case may be,and the assignor of a Mortgages, beneficiary or vendor. Section 30 .."Mortqaqor"shall mean and refer to a person or entity who mortgages his or its property to another,i.e.,the maker of a Mortgage,and shall include the trustor of a Deed of Trust and the vendee under an installment land sales contract.- Section 31."Notice and Heariigq"shall mean and refer to written notice and a hearing before the Board or the Architectural Review Committee of the.Association,or other tribunal created.by the Board in the manner_provided in the By—Laws,at which the affected Owner shall have an opportunity to be heard in the manner provided herein and in the By-Laws. _-Section 32.g "Notice of.Annexation"shall mean and refer to that certain instrument utilized to annex all or any portion of S0076.003—l1492.FCM 531406 the Annexation Property,in accordance with the provisions of this iDeclaration,thereby subjecting said subsequent Phase to the provisions of this Declaration and to the jurisdiction of the Association. Section 33."Owner"shall mean and refer to the record Owner,or Owners if more than one (1),or the purchaser under a conditional sales contract of fee title to,or an undivided interest in,any Lot in the Project.The term "Owner"shall include the Declarant,the vendee under an installment land sales contract (as _described in Sections 2985 through 2985.6 of tins California Civil Code,as same may be amended,from time to time)and the holder of a leasehold.estate having"a tern:of twenty (20).or ‘more jyears, including renewal periods.The foregoing is not intended to include persons or entities who hold an interest in a Lot merely as security for the performance of an obligation.—4' Section 34."Phase"shall mean and refer to cme nmme_ ‘Lots and/or Common Area identified.in thisIDeclaration.and/or annexed to the Project by the recordation of a Notice of Annexation in the Office of the County Recorder and for which a Final Subdivision Public Report has been issued by the DRE.‘ Section 35."Project"shall mean and refer to the Prop- erty and to all Improvements,including the Residences,constructed thereon and the initial Common Area,amd all Annexation Property which is made subject to this Declaration in accordance with the applicable provisions of this Declaration. Section 36."Property"shall mean and refer to all of that certain real property described in Paragraphs A and B of the recitals hereinabove. 1 Section 37."Residence"shall mean and refer to the individual dwelling and the related Improvements which are cone structed upon a separate Lot and which are designed and intended for use and occupancy as a residential residence.- .Section 38 ."Rules and Regulations"shall mean and refer to the Rules and Regulations adopted by the Board pursuant to the By~ Laws and this Declaration,’as they may be amended,from time to time. ‘Section 39."VALFHA"shall mean and refer to the United States Veterans Administration and/or Federal Housing Administration, including the department.or agency of the'United States government as shall succeed to the VA and/or FHA. _.Section 40."Water Quality Management Plans"shall mean and refer to all applicable plans and requirements for the management of storm water at the Project,including,without limitation,any -1o—ySUD76.003—11492 .F'C'M 031406 applicable National Pollutant Discharge Elimination System ("NPDES") permit requirements,Standard.Urban.Stern:‘Water'IMitigation.Plan ("SUSMPF),Storm Water Pollution Prevention Plan (”SWPPP"),Water Quality“Management Plan.("WQMP"),cm‘other‘stornl water "quality management plan that may be prepared for the Project in compliance with applicable federal,state and local laws.The Water Quality Management Plans address water runoff generated by the residential areas and other development Improvements within the Project and will be monitored by various public agencies (e.g.,the Regional Water Quality Control Board and the City).The Water Quality Management Plans_contain,among other things,certain Best Management Practices that must be followed by the Association-,the Owners and otherl residents within the Project.The Water Quality Management Plans and the related Best Management Practices may be modified at any time by the Declarant and/or the public agencies having jurisdiction over such matters..T . Section 41.Interpretation.i {a}"General jRules.This Declaration shall be gliberally construed to effectuate"its purpose of creating a uniforn1plan.for subdividing,maintaining,improving and.selling the Lots.As used in this Declaration,the singular includes the plural and the plural the singular.The masculine,feminine and neuter each includes the other,unless the context dictates otherwise. .(b)Articles,Sections and Exhibits.The.Article and Section headings_are inserted for convenience only and may not be considered.in.resolving questions of interpretation.or ‘construction.Unless otherwise indicated,any references in this Declaration to articles,sections or exhibits are to Articles, Sections and Exhibits of this ,Declaration.Adi.exhibits attached to this Declaration are incorporated in this Declara- tion.by this reference.The locations anddimensiolls of any Improvements depicted on the Exhibits attached.hereto,and.to any Notice of Annexation are"approximate only,and the as-built location and dimension_of any such Improvements shall control. (c)Priorities and Inconsistencies.IHE there:are conflicts or inconsistencies between this Declaration and the Articles,Bylaws,or Rules and Regulations,then the provisions of this Declaration shall prevail.’ (d)Severabilityu The provisions of this Declaration are independent and severable.A determination of invalidity, partial invalidity or unenforceability of any one (1)provision of this Declaration by a court of competent jurisdiction does snot affect the validity or enforceability of any other provi- sions of this Declaration.T P 5C‘0'76.003-11492.PC'M 031406 -13-- (e)Statutory References..All references made in this Declaration to statutes are to those statutes as currently in effect or to subsequently enacted replacement statutes. Section 42.Application of Definitions.The aforesaid definitions shall be applicable to this Declaration and to any supplements or amendments hereto,including,but not limited to,any Notices of.Annexation filed or:recorded pursuant to the provisions of this Declaration,'unlesstfl macontext shall prohibit such.application. ARTICLEVII GENERAL PLAN OF DEVELOPMENT Section 1.Introduction.inns Declarant Imus designed Codorniz as a multi—phase planned residential community,which,if completed as proposed,may consist of approximately one hundred and 'forty—two (142)d single family Residences,»together with various Common Area inmmovements,related anenities,anni open space.'The. Project mdll.lxe developed in accordance with.tfl n2 general plan of. development submitted.to and approved by the City,VA/FHA (if applicable),and the DRE.The Association will maintain the Common Area and will be the_management body for the Project,as_provided herein (nothing in this Declaration or any Notice of Annexation is intended,or shall be interpreted,to constitute an "enhanced _protection agreement"as defined in Section 901 of the California Civil Code). _Section 2.Description of Common.Area.Initially,the Common Area associated with the Project is planned to consist generally of private streets,the easement areas depicted on Exhibit WA"herebo (if any),the perimeter walls and fences depicted on .Exhibit "C"hereto,-and the private structural BMPs,private concrete, terrace drains,and other private storm drainage facilities depicted on Exhibit "D"hereto.Each Owner of a Lot in the Project shall have a nonexclusive easement appurtenant to his Lot for use and enjoyment of all Common Area within the Project,in accordance with the terms and provisions of this Declaration and the By-Laws and Rules and ‘Regulations ‘adopted.Iby'tjna Board.Except as <3therwise jprovided herein,the Association shall be responsible for the ownership,if "applicable,maintenance,and operation of all Common.Area within the Project. Section 3._Membership in the.Associationu As more par- ticularly set forth in this Declaration,each Owner of a Lot in the Project shall automatically become a member of the Association,and shall be obligated for the payment of.Assessments to the Association. In addition,each Owner,his family,members,lessees,tenants, guests and invitees,will be entitled to the use and enjoyment of the r12-50076 .D03 -11492 .FCM 031406 the By-Laws and the Rules and Regulations adopted by the Board. Section 4.Annexation of Subsequent Phases.At such time as subsequent Phases are developed,if ever,Declarant shall annex such Phases to the Project in accordance with the provisions of the Article herein entitled "Annexation of Additional Property." _Section 5.Declarant’s Use lof Private Streets and Utilities.For as long as Declarant owns a Lot in ‘Tract 32070, Declarant hereby reserves,together with time right txy grant and transfer all or a portion of the same,easement rights to use any private streets and utilities within the Project for,including,but not limited to,construction,access and connection of utilities by Declarant for purposes of developing the real property comprising Tract 32070 . Section 6.Declarant’sCkmtrolcfl fDevelopment.lkiorder that the Project be completed and established as a planned residen— 32070 or five years from the recordation of this Declaration, Declarant shall have sole discretion and control_over all aspects of construction of Residences and Improvements owned by itself,and.over the selling and marketing of Lots in the Project,subject to all applicable governmental regulations and the City’s Municipal Code. to,the_right and ability to: (a)Install,construct,modify,alter or remove any Improvements in the Project; »(b)Redesign or otherwise alter the style (e.g., architectural),size (e.g.,adding additional square footage or reducing the square footage of the Residences),color"or appearance of any Improvements in any portion of the Project owned by Declarant;P ''I portion of the Project owned by Declarant; .*(d)subdivide,re—subdivide,grade cm:regrade any Declarant;and/or L (e)Otherwise control all aspects of designing and constructing the Improvements in.the Project and regulating the marketing of Lots in the Project. In furtherance thereof,Declarant hereby reserves unto itself,and its successors and assigns,a nonexclusive easement for ingress and ;I I‘ i5U076.003-11¢192.FCM 031406 -13- Common Area within the Project,in accordance with this Declaration,_ tial community,for as long as Declarant owns any interest in Tract Such discretion and control shall include,but shall not be limited (c)Construct such additional Improvements on any‘ portion of the Emoperty and/or Annexation Property owned—by, egress on,over and across the Project as necessary to construct “ Improvements,and further reserves for itself the right,(a)until all Lots in Tract 32070 are initially sold (and escrows have closed), or ‘(b)five (5)years ‘from the recordation of this Declaration, whichever occurs last:“' i)A nonexclusive easement for ingress and egress ,on,over and across the Project-as necessary to construct the _Lots,Residences,and all other Improvements; p ii)The exclusive right to maintain one (1)or more sales office(s),model complex(es),construction trailer, portable toilets,interior design and decorator center(s)and ~parking area for employees,agents and prospective buyers; iii)The exclusive right to place reasonable signs, flags,banners,or other forms of advertising on any portion of the Project owned or controlled by Declarant and/or Common.Area (specifically including the Project entry area),as Declarant deems necessary,irrespective of size,color;shapmaor materials of such items,except to the extent that the exercise of said exclusive right conflicts with any provision of the City's Municipal Code or other applicable governmental regulations; iv)A nonexclusive right to utilize the Common Area and any unassigned open parking spaces in connection with its program for the sale or leasing of Lots in the Project;a v)The right to install,place,replace,construct, _reconstruct,modify or remove any Improvement fronlany Lot owned by Declarant,as Declarant may,in its sole discretion (subjectatoapplicableCityapproval),deem appropriate; vi);The right to conductany commercial activity upon any Lot owned by Declarant which reasonably relates to the development,marketing,leasimg or sale of the Lots or other xproperty in the Project;and — vii)The right to utilize the Common Area in the Project and exclude Owners and their guests so long as such exclusion is not unreasonable,for marketing,sales band promotional activities which relate to the leasing or sale of the Lots or other property in the Project.The Declarant agrees to pay any and all maintenance or repair costs associated with the use of the Common.Area for marketing purposes and to obtain a reasonable amount of liability insurance naming the Associa- tion as an additional insured during such use of the Common A Area .-' -14-'5oo7s.op3-11492.FcM 031405 Each Owner hereby grants,upon acceptance of his or her deed to his or her_Lot,an irrevocable special power of attorney to Declarant to execute and record all documents,easements,lot line adjustments, and maps,etc.,necessary to complete development of the Project,and to allow Declarant to exercise its rights under this Declaration.‘ Section '7.'Irrevocable Limited Power of Attorngg.Each ; Owner of a Lot'in the Project,by accepting a deed to a Lot,hereby irrevocably appoints Declarant as his attorney-in~fact,for himself and.eachuof1fi £;Mortgagees,optionees,grantees,licensees,trustees, receivers,lessees,tenants,judgment creditors,heirs,legatees, devisees,administrators,executors,legal representatives,succes- asors and assigns,whether voluntary or involuntary,and hereby grants to Declarant an irrevocable limited power of attorney coupled with an interest for Declarant to act as his attorney—in—fact in connection with any modification to the development plans of all or any portion of the Project.Each Owner hereby acknowledges and agrees that this‘ irrevocable limited power of attorney is:(a)retained for the benefit of .the Declarant and not the Owner;and (b)created by Owner's acceptance of a deed to a Lot and as part of the consider- ation for the purchase and sale of a Lot.Based on the foregoing, each Owner further acknowledges and agrees that this irrevocable limited power of attorney is "coupled.with.an interest"and,pursuant'to Section 2356 of the California Civil Code,as same may be amended, from time -to time,may not be terminated by:(a)the Owner's revocation of such limited power of attorney;(b)the Owner's death; or (c)the Owner's incapacity to contract.‘In furtherance thereof and subject to the limitations and restrictions set forth in this Article,Declarant shall have the right and power as a duly autho- rized attorney—in—fact to perform any of the.following actions:, (a)To prepare,execute,acknowledge and record any map or record of survey affecting the Project required or permitted by the provisions of the Subdivision Map Act of the State of California in effect on the date of the recording of_ this Declaration,and.as thereafter amended,and any ordinances, rules or regulations of the City,and any other governmental entities and authorities having jurisdiction over the Project,; in effect on the date of the recording of this Declaration,and as thereafter enacted or amended,or which may be required or permitted byennrtitle insurer,and,iJ1connection.therewith,to aperform all conditions,undertake any obligations and execute all agreements and documentation required or permitted by any'federal,State and local governmental entities and authorities; to-appear before any such.governmental entities and.authorities; and to execute,acknowledge and deliver any improvement agree- ments and bonds,and post deposits securing the performance of any such conditions and obligations;. -15-SO0?5.003—1l&92.FCM 031496 (b)To prepare,execute,acknowledge and file for approval any application for zoning or setback changes or lot line adjustments,or variance or conditional use permits,or'any, other permits or reports required or permitted by the laws of the State of California as in effect on the date of the recording of this Declaration,as thereafter enacted or amended, and any ordinances,rules and regulations of the City,and any other governmental entities and authorities having jurisdiction .over the Project,as in effect on the date of the recording'of_ this Declarations and.as thereafter enacted.or amendedq or which may be required or permitted by any title insurer,and,in connection therewith,to perform all conditions,undertake any obligations and execute all agreementsa and documentation required or permitted by any federal,.State and local governmen» tal entities and authorities;and to execute,acknowledge and deliver any improvement agreements and.bonds,and post deposits securing the performancerof any such conditions and.obligations; (c)To make applications for any property reports or public reports,or amendments thereto,or exemption from the requirements therefor required.or permitted.by federal and State statutes,rules and regulations relatimg to the sale,lease,, transfer or other disposition of subdivided lands,and,.in connection therewith,to perform all conditions,undertake any obligations and execute all,agreements and documentation required or permitted by any federal,State and local govern- mental entities and.authorities;emuitt:execute,acknowledge and’ deliver any improvement agreements and bonds,and post deposits securing thejperformance:of any such conditions and.obligations; (d)To deliver any public reports or property reports,or amendments thereto,obtain receipts and offer and administer rescission rights required by law; (e)To prepare,execute,acknowledge and file for _approval any registration or‘application.for any‘permit, approval,exemption,ruling or entitlement,which registration or application is required or permitted pursuant to any law or regulation in effect as of the date of the recording of-this Declaration,and.as hereafter enacted or amended.bymany federal, State and local governmental entities and authorities,and,in connection therewith,to perform all conditions,undertake any obligations,and execute all agreements and documentation required or permitted by such governmental body,and by any such laws and regulations;to appear before any such governmental bodies,and to execute and deliver any improvement agreements and bonds,and post deposits securing the performance of any such conditions and obligations;and do all other things now or thereafter permitted or required by any such governmental body and any such laws and regulations; -15..so075§oo3-11492-PcM 031405. (f)To prepare,execute,acknowledge and record any .deeds or waivers which may be permitted or required to clear title ‘to any constructed or unconstructed Residences in the Project;and (9)To do any and all things necessary or desirable under the circumstances to effect and accomplish development of the Project.-.‘ I Section 8.Mortgage Interest and Other Encumbrances to iTake Subject to Power of Attorney.The acceptance or creation of any Mortgage or other encumbrance,whether or not voluntary,created in good faith or given for value,shall be deemed to be accepted or created subject to each of the terms and conditions of the power of attorney described hereinabove.-~I —Section 9.Non—Liability of Declarant.The purpose of this Article is merely to describe the proposed general plan of development for the Project.Without limiting the generality-of the foregoing,nothing in this Section or elsewhere in this Declaration shall limit the right of Declarant to complete construction of the Project,to alter same or to construct such additional Improvements as Declarant shall deem advisable prior to the completion and sale of all Lots in the Project.Declarant may assign any or all of its rights under this Declaration to any successor to all or any part of Declarant’s interest in the Project by an express written assignmentg recorded in the Office of the County Recorder. ARTICLEIIII RESERVATION OF EASEMENTS AND OTHER PROPERTY RIGHTS IN THE COMMON AREA Section 1.W Owners’Easements.Every Owner shall have a nonexclusive right and easement of access and -use in and to the Common Area.Said right and easement shall be appurtenant to and. shall pass with title to every Lot,subject to the limitations set forth in Section 2 below.a Section 2.Limitations on.Owners‘Easement Rights.The rights and easements of access,use and enjoyment set forth in isection 1 rmmeinabove shall be subject to the provisions of this Declaration,including,but not limited to,,the following: (a)The right of the Association to reasonably limiti the number of guests of Owners using the Common Area;. -17-5oois.oo3-114é2.PcM 031405 500736.003-ll492.FC.'M 031406 (b)The right of the Association to establish and enforce reasonable Rules and Regulations pertaining to the us of the Common Area;,- (c)The right of the Association,in accordance with hits Articles,By—Laws and.thisIDeclaration,tolborrowrmoney with the assent of sixty—seven percent (67%)of the voting power of the Association,,excluding Declarant,and/or to mortgage, pledge,deed in trust or otherwise hypothecate any or all of its real or personal property as security for money borrowed or debts incurred,for the purpose of improving or repairing the Common Area and related facilities;' .-(d)The right of the Association to suspend the voting rights and rights and easements of use and enjoyment of the Common Area of any Member,and the persons deriving such rights and easements fron1any‘Member for any period.during which any Assessment against such Member's Inn:remains unpaid and delinquent (except such rights as are reasonably required to access said Member’s Residence);and after Notice and Hearing, to impose_nmnetary penalties or suspend such use rights and easements for a period not to exceed thirty (30)days for any violation of this Declaration.or Rules and.Regulations,it being’ understood that any suspension for either nonpayment of any As- sessments or breach of such restrictions shall not constitute a waiver or discharge of the Member's obligations to pay Assess- ments as provided herein;' A (e)‘Subject to the terms and provisions of the Article herein entit1ed.“Mortgagee Protection,"the right of the Association to dedicate or transfer easements over all or any part of the Common.Area to any public agency,authority,entity or utility for such purposes and subject to such conditions as may be agreed to by the Owners.No such dedication or transfer shall be effective unless:(1)an instrument approving said. dedication or transfer is signed by Owners representing sixty- seven percent (67%)of the voting power of the Association, excluding Declarant,and recorded in the Office of the County Recorder,and (2)a written.notice of the proposed dedication or transfer is sent to every Owner not less than fifteen (15)days nor more than thirty (30)days in advance;provided,however, that the dedication or transfer of easements for utilities or for other public purposes consistent with the intended.use of the ‘Common Area shall not require the prior approval of the Members of the Association;‘r ‘ (f)The right of Declarant (and its sales agents,‘representatives,customers and prospective purchasers)to_the nonexclusive use of the Common Area without charge for sales, display access and exhibit_purposes -related to selling, -18.. marketing,showing and otherwise disposing of Lots in the Project,_which.rights ZDeclarant hereby‘reserves;provided, however,such use shall cease upon the date that Declarant no‘ ,longer owns any Lot in Tract 32070.In addition,such use shall not unreasonably interfere with the rights of enjoyment of other Owners as provided herein; (g)The right of the Association,acting by and through its Architectural Review Committee,to enact uniform and reasonable architectural standards;A (h)The right of Declarant to designate additional Common Area,pursuant to terms of the Article herein entitled -"Annexation of Additional Property“;A 2 (i)The right of the Association to perform and exer- cise its duties and powers as set forth herein:A (j)Other rights of the Association,the Architec~ tural Review Committee,the Board,the Owners and Declarant with respect toithe Common Area as may be provided for in this Declaration; (k)The right.of Declarant to grant and transfer easements on,over and across Tract 32070 for the development, installation,construction,and maintenance ‘of electric, telephone,cable television,water,gas,sanitary sewer lines and drainage facilities,as shown on any recorded subdivision map covering the Project,and.as may be reasonably necessary for the proper maintenance,development.and conveyance of Lots and/or Common Area; (l)Any limitations,restrictions or conditions affecting the use,enjoyment or maintenance of the Common Area imposed by Declarant or by the City,or other governmental agency’having jjurisdictionitxp impose any’such.limitations, restrictions or conditions,including,but not limited to,the rights of the City or such other governmental agency having jurisdiction to use their vehicles or appropriate equipment over those portions.of the Common .Area.designed.for :vehicular movement to perform municipal functions or emergency or essential public services;and *'A - —(m)Any lindtations cm:restrictions CHIEMI Owner’s right to use his/her Lot so as not to interfere with any and all street lights,clustered mailboxes,improvement locations,and utility easements affecting such Owner's Lot.= Section 3.,Easements for Common Fences .There is hereby created,established and granted an easement appurtenant to the real 50076 .003-11492 .FCM 031405 -19- property in the Project for the placement of all common fences,where such fences were originally installed by Declarant,regardless of whether such fences are located precisely upon the boundary separat— ing two (2)residential Lots oria residential Lot and Common Area. Those Owners who have a common fence which adjoins their Lots and effectively creates the boundary line between such Lots (including the Association and its Common Area)shall equally have the right to use such fence and each shall have the exclusive right to the use of the interior surface of the fence facing his Residence or Common Area.Neither Owner shall drive nails,screws,bolts or other objects more than halfway through any common fence,interfere with the adjacent Owner's use and enjoyment of the common fence,or impair,in any way,the structural integrity of the common fence.In the event that any portion of such fence,except the interior surface of one (1)side,is damaged.or injured from any cause,other than the act or negligence of either party,it shall be repaired or rebuilt at their joint expenseunless otherwise provided herein (e.g.,structural integrity of certain fences and/or walls maintained by the Associa- tion). Section 4.Delegation of Common Area Use Rights.Any Owner who resides within the Project may delegate his/her rights of ,use and enjoyment to the Common Area to the members of his immediate family and any other persons residing within his/her Residence.In the event an Owner has rented or_leased his/her Residence,his/her rights of use and enjoyment to the Common.Area shall be automatically delegated to his/her tenants or lessees for the duration of their tenancy,and the Owner shall forfeit any rights of use and enjoyment to the Common Area for the duration of such tenancy,except those rights of ingress and egress which are reasonably necessary to carry out the appropriate duties of a landlord.In the event of a condi« tional sales contract,the seller under the contract shall be deemed to delegate his/her rights of use and enjoyment to the Common Area to the purchaser under the contract.a - / Section 5.Easements for-Public Services.In addition to the foregoing easements over the Common Area,there is hereby created,established and granted easements for public access and/or services,including,but not limited to,the right of police,fire, ambulance and other public services to enter upon any part of the Project for purposes of serving the health and welfare of all Owners in the Project. Section 6.Easements for Community Cable Television, Telecommunication Systems and.Alarm System Cabling.There are hereby reserwrml fora the .benefit of Declarant,and its Successors and assigns,nonexclusive easements for ingress,egress and access on, over,under and across the Project for purposes of installation, ioperation,maintenance,repair,inspection,replacement and removal- of transmission lines and other facilities and equipment for (a)a ‘50076.003 -11492 .FCM 031406 community antenna television.system,(b)telecommunications and fiber optics systems,and (c)alarm system cabling.Such easements shall be freely transferable to any other person(s)or entity(ies)for the purpose of providing any or all of such services.The exercise of all rights reserved hereunder shall not unreasonably interfere with the Owners’use and enjoyment of the Project. Section 7.Easements Over Sidewalks.Declarant hereby covenants for itself,its successors and assigns,that each and every Owner,his tenants and invitees shall have appurtenant nonexclusive reciprocal easements on,over and across all sidewalks,if any,lo» cated on portions of Lots or Common.Area immediately adjacent to the streets within the Project for pedestrian access,use and enjoyment. Section 8.Easements for"Encroachments.P Declarant reserves for its benefit,and the benefit of the Owners of Lots" within the Project,and hereby creates,establishes and grants a nonexclusive easement appurtenant to each Lot on,over and across those portions of any adjacent Lot (whether a residential Lot or an i Common Area Lot),not to exceed one foot (1’),for the encroachment by any foundations and footings,and not to exceed three feet (3’) for eaves-or other overhangs,wing walls and/or chimneys existing as of the date that escrow is initially closed for the sale of said Lot from Declarant to an Owner.«Additionally,there is hereby created, established and granted nonexclusive easements appurtenant to any Lot on,over and across those portions of any such adjacent Lot (whether -a residential Lot or an Common Area Lot),not to exceed one foot (l’),for the encroachment by any Improvement resulting from any subsequent settling or shifting of any Improvements.All of the aforesaid encroachments shall be measured at the point of encroach- ment along a line which is perpendicular to the common property line between the affected Lots.Declarant further reserves reciprocal easements ,for utility services and repairs,replacement,ands maintenance of the_same over the Lots for the benefit of the Owners. Use of the foregoing easements may not unreasonably interfere with each Ownerfs use and enjoyment of the Owner's respective Lot. Section 9.lcommon Area Wall Easements}The Declarant preserves for the benefit of the Association,the following easements: (a)An.easement over all Lots abutting a tractl boundary or Common Area,consisting of a three (3)~foot wide strip of land.bounded by the tract boundary or the property line separating the Lot from the Common Area (as applicable),to accommodate the footings and other structural components of any wall located on or immediately adjacent to such property line, including any encroachments thereof onto the Lot;and _21.50076.U03-11492 .FCM O3‘1-906 (b)An easement for access over such Lots as reasonably necessary for maintaining the walls and related Improvements.' Section 10.Easements for Utilities.The rights and duties of the Owners of Lots within the Project with respect to sani- tary’sewer;water;electricity;gas,‘television.cable kn:CATV service)and telephone lines,and other facilities,shall be governed by.the following: ' (a)Each respective_utility company shall maintain all utility facilities and connections on the Project owned by such utility company;provided,however,that if any company shall fail to do so,it shall be the obligation of each Owner to maintain those facilities and connections located upon,within or servicing such Owner’s Lot;and it shall be the obligation of- the Association to maintain those facilities and connections located upon and which provide service to only the Common.Area; (b)Wherever sanitary sewer,water or gas "connec- tions,television cables,electricity or telephone lines are installed within the Project and it becomes necessary to gain access to said connections,cables and/or lines through a Lot owned by someone other than the Owner of the Lot served by said connections,cables and/or lines,the Owner of the Lot served by said connections,cables and/or lines shall have the right,and is hereby granted an easement to the full.extent necessary therefor,to enter upon such other Lot (following reasonable prior notice and at a reasonable hour of the day),or to have the utility companies enter upon such other Lot to repair, replace and generally maintain said connections,cables and/or lines.In the event that any damage shall be proximately caused by such entry,said Owner or utility company shall repair the same at its respective expense;O ‘' ,(cc)Whenever sanitary sewer,water or gas connec- tions,television cables,electricity or telephone lines are installed within the Project,and said connections,cables and/or lines serve more than one (1)Lot,the Owner of each Lot -served.by said connections,cables and/or lines shall be .entitled to the full use and enjoyment of_such portions of samer as service his Lot; (d)In the event of a dispute between Owners re--. specting the repair or rebuilding of the aforesaid connections, cables and/or lines,or the sharing of the cost thereof,upon written request of one (1)_of such Owners addressed to.the Association,the matter shall be submitted to the Board who shall decide the dispute,and the decision of the Board shall be final and conclusive on the Owners; e22-soo7s.oo3¥11492.FcM 031405 (el Easements over the Project for the installation and neintenance of electric and telephone lines,water,gas, drainage and sanitary sewer connections and facilities,and television antenna cables and facilities,all as shown on the recorded map of the Project and as may be hereafter required or needed to service the Project,are hereby reserved by Declarant, ,together with the right to grant and transfer the same; (f)Each Lot granted to an Owner is subject to all easements for utility installation and maintenance,storm drains and other purposes,as more particularly shown on the recorded subdivision map(s)for the Project,and as may be required or- needed to service the Project.Any installation or construction of landscaping or structures within said easement areas may be done only in accordance with the terms,conditions and provi- sions of said easements;and A (g)To the extent required by the City,utility lines , shall be installed and maintained underground.' Section 11,-Easements for Maintenance of the Common Area.There is hereby created,established.and granted.a nonexclusive easement in favor of the Association for ingress,egress and access on,over and across all portions of the Project as reasonably required by the Association to perform its maintenance obligations for the Project and Common Area,as more particularly set forth therein,including the Articles entitled "Powers and Duties.of the Association"and "Repair and Maintenance."In the event it becomes necessary for the Association to enter upon any Lot for purposes of: (a)maintaining the Project or the Common Area;or (b)bringing an Owner and/or his Lot_into compliance with this Declaration in accor- dance with the provisions set forth herein,the Association,and its duly authorized agents and employees,shall have the right,after reasonable notice to the Owner and at a reasonable hour of the day, to enter upon.such Owner's Lot for.the performance of such work.Such entry shall be made with as little inconvenience to the Owner as isl practicable,and in the event that any damage shall be proximately caused by such entry,the Association shall repair the same at its expense.Notwithstanding the foregoing,no notice of entry is- required in the event of an emergency or for routine maintenance (e.g.,maintenance of the landscape easements depicted on an Exhibit to this Declaration.or a recorded.Notice of.Annexation —for Phase 1, see Exhibit "A"attached hereto). Section 12._Easements for Clustered Mailboxes.In order to comply with the various requirements of the City and the United States:Postal Service,clustered mailboxes and/or light standards may be installed.withint the Project.Easements are ihereby'created, granted and established on and over the affected portions of the Project and.granted in favor of all Owners and the United States Postal Service for delivery,deposit and retrieval of mail,and the 523-50076 .003-11492 .F'C’M 031406 utility company,if any,and the Association,for maintenance of the light standards;A Section 13.Easements for Drainage.There are hereby created,granted and reserved over each Lot and the Common Area in the Project easements for drainage according tx>the patterns for drainage created by the grading plans and drainage system for the Project approved by the City,as well as according to the actual, natural and.existing"patterns for mdrainage (including,Ibut :not limited to,easements to accommodate any "cross—lot drainage," iwhereby water runoff from one [1]or more contiguous Lots [or Common Area]drains across another Owneris Lot or Common.Area).Each Owner covenants and agrees that he shall not obstruct,restrict,divert or otherwise interfere with said drainage patterns of waters from adjacent Lots in the Project over his Lot,or,in the alternative, that "in the event it is necessary and essential to alter said drainage pattern for the protection and_use of his Lot,he will make adequate provisions for proper drainage and obtain all appropriate approvals from the respective governmental authorities,as applica- ble,and the Architectural Review Committee. Section 14.Easement for.Area Drains.Declarant hereby establishes,grants,and reserves nonexclusive reciprocal easements over the Lots and Common Area for drainage purposes to accommodate the drainage system,including,but not limited to concrete terrace drains,originally installed by Declarant pursuant to the precise grading"and‘construction plans-.Each Lot Owner-—served by said, drainage system shall be responsible to maintain and preserve said system in an operating condition to ensure proper drainage on,over, under,across and through the yard area of his or her Lot in accor- ~dance with the established drainage patterns created by the precise grading plans-for the Project,and shall bear the cost of the mainte- nance,repair or zrmflacement associated vnjfli the drainage system which affects his or her Lot.The Association shall neintain that portion of the private drainage system for the Project identified on Exhibit "D"attached hereto or in any recorded Notice of Annexation. No Owner shall alter or remove the drainage system or modify the grade of the yard area in his or her Lot without review and approval of the City where applicable,and without the express written consent .of the Architectural Review Committee.In the event any portion of the drainage systenlis damaged,destroyed.or not properly maintained, any Lot Owner affected.by such.drainage systentmay cause said repair, restoration.or maintenance work.to be completed.and shall be entitled‘ "to recover the appropriate expenses from the Lot Owner responsible for such damage,destruction or need for maintenance.Notwithstand- ing the foregoing,if any portion of the drainage system is damaged or destroyed as a pmoximate result of any act cm cmussion of any Owner,or any member of his family,guests,tenants,lessees and/or invitees (without regard to fault),such (haunt shall immediately repair and/or rebuild such drainage system,and shall bear all of the .24. 50076.003 -11492 .FCM 031406 costs thereof,including any cost and/or expense related to personal injury or property damage to any person,Residence,or Lot in the .Project. Section 15.Easements to the City.There is hereby created,reserved,and granted to Declarant,together with the right to grant and transfer same to the City,easements for ingress and egress over the Project for the purpose of permitting the City to perform various obligations and responsibilities within or adjacent into the Project. Section 16.Easements for Construction and Sales.De- clarant hereby expressly reserves for itself,for the benefit of its agents,employees and.contractors,and.for’the benefit of its successors and assigns,for a period of five (5)years from the recordation of this Declaration,or until all Lots in Tract 32070 are initially sold (and escrows closed),whichever occurs last,nonexclu- sive easements for access,ingress and egress imp‘on,over,and across Tract 32010 as necessary to construct the Improvements,and further‘reserves "the exclusive right.to carry’on.normal sales activity,including the operation of a models complex and sales office,and the display"of promotional signs and exhibits in ,connection with the sale or lease of Lots in the Project. Section 17.Reservation of Construction Rights by De- clarant.In order that the Project be completed and established as a planned residential community,nothing i11 this Declaration shall limit the right of Declarant to:(a)complete construction of any Improvements in the Project;(b)redesign or otherwise modify the Improvements owned.by‘Declarant;{c)construct such additional Improvements on any portion of the Project owned.by Declarant;or (d) otherwise control all aspects of constructing the Project or selling or leasing of Lots in the Project.Furthermore,nothing in this Declaration shall limit the right of Declarant to establish addition- al licenses,easements anui rights—of-way i11 favor cnf Declarant, utility companies or others as may,from time to time,be reasonably necessary for the development of the Project.The foregoing rights established and reserved by Declarant shall be subject only to the applicable regulations and requirements of the City and the DRE.The foregoing rights of Declarant may be assigned to any successor to all or part of Declarant’s interest in the Property and Annexation Property*by an express assignment recorded with the County Recorder. -25- 50076.003 -l1¢192.F'C'M 031406 Section 18.Title to the Common Area. (a),Transfer of Title to the Common Area.Declarant hereby covenants,for itself and its successors and assigns, that it will convey to the Association fee simple title to,or .a nonexclusive easement in,as appropriate,the Common Area, free and clear of all liens and encumbrances (i.e.,if the Common Area title being conveyed is fee simple),subject to the Protective Covenants set forth in this Declaration or which are of record at the time of the conveyance.Declarant will simi- larly convey to the Association,from time to time,in fee simple or by easement,any Common.Area located in the Annexation Property which is designated in this Declaration or in any No- tice of Annexation for conveyance to the Association.Notwith—_ standing anything to the contrary herein or in the By—Laws for the Board,commencing on the date of the first annual meeting of the Owners,Declarant shall relinquish control over the Association's ability to decide whether to initiate a con-- struction.defect claim:under’Division.2,Part‘2,‘Title 7 (commencing with Section 895)cflf the California Civil Code. Therefore,the ZDeclarant,current employees and agents of Declarant,Board members who are appointed by Declarant,Board members elected by a majority of votes cast by Declarant,and all other persons whose vote or written consent is inconsistent with the intent of the preceding sentence,are prohibited from participating and voting in any decision of the Association or Owners to initiate a defect claim. (b)Completion of Common Area.In the event that Improvements proposed to be constructed on any portion of the Common Area so annexed to the Project have not been completed prior to the first close of escrow for a Lot in the property being annexed,as evidenced.by’a “Notice of Completion?recorded in the Office of,the County Recorder,then the completion of such Improvements shall be assured in accordance with Section 11018.5 of the California Business and Professions Code,or any similar statute hereafter enacted. (c)Commencement of .Association,Responsibilities. Except as may otherwise be provided herein and/or in the grant deed conveying Common Area.to the Association,the.Association’s responsibility to maintain the Common Area conveyed to the Association shall commence concurrently with the levy of assessments by the.Association for maintenance of such Common — Area but not later than the first day of the first month ‘following the first close of escrow for the sale of a Lot to a bona fide purchaser for the Phase which includes such Common '.Area.The Association shall not interfere with the performance of any_warranty or other contractual maintenance obligations .which the contractor or subcontractors of Declarant may be bound -5c«o7'6.0o3-11492.1='cM 031406 _-'"26"_ S0076.003—11492.FCM 031405 to perfornt Notwithstandirmythe foregoing,maintenance performed by such contractors and subcontractors of Declarant shall not serve to postpone the commencement of Regular .Assessments pursuant to this Declaration,nor entitle an Owner to claim any offset or reduction in the amount of such Regular Assessments. (d)Character of Improvements to Common Area.The nature,design,quality and quantity of all Improvements to the Common Area shall be determined by Declarant,and subject to City review and approval,if required.The.Association shall be obligated to accept title to the Common Area,as appropriate, and undertake all maintenance responsibilities for the Common @Area when title is conveyed and/or maintenance responsibilities are tendered by Declarant to the Association,pursuant to Subparagraphs (a)and (c)above.’- (e)Formation.of ibandscape Maintenance District. Notwithstanding any provision contained herein to the contrary, the Board shall ‘have the power and authority to convey the Common.Area,or any portion.thereof,to the City upon request of the City to include the Common Area,or any such portion,in a landscape maintenance district and/or delegate its maintenance obligations to the City <xr—tx:such.landscape maintenance district.Each.Owner'of;aImm shall pay all assessments,special taxes and other charges levied against such Lot in connection iwith any such landscape maintenance district.Each Owner of a Lot in the Project,by acceptance of a deed from Declarant for such Lot,agrees to refrain from taking any action which would: in any way interfere with the formation of or annexation into a« landscape maintenance district,or other special district or community facilities district,the operation of either district, or decisions made or actions taken by the City with respect to such districts,including,without limitation,the timing of ‘commencement,amount,spreading or use of the assessments, special taxes or other charges collected by such districts. (f)Disputes.In the event that a dispute arises between Declarant and the Association with respect to the nature,design,quality or quantity of the Improvements,or the acceptance of maintenance responsibilities therefor,resolution of the dispute,unless otherwise required herein (e.g.,see the Alternative Dispute Resolution Provisions set forth below), _shall be submitted to arbitration and conducted in accordance ,with the then existing rules for commercial arbitration of the American Arbitration Association.In the event of a demand for tarbitration,-Declarant shall remit any fee required to initiate the arbitration.However,the costs of arbitration,including attorneys‘fees of the prevailing party,shall be borne in such proportions as the arbitration panel shall determine. _,2'7_ Section 19.Reservation.of icommon Area Easements. Declarant hereby reserves the right to grant nonexclusive easements over the Common Area in favor of Owners of any Annexation Property which is annexed to the Project pursuant to this Declaration,and, upon the recordation of a Notice of .Annexation.affecting the Annexation Property,the Owners described in this Declaration shall automatically obtain nonexclusive easements cnmn:all Common Area which is a part of said Annexation Property.9 F Section 20.Easements Set Forth on Final Tract Maps and in Other Recorded Documents.In addition_to all other easements described.herein,the Property and.Annexation.Property are subject to all easements set forth on the recorded map of Tract 32070,and any and all other easements which may be of record against the Property and the Annexation Property.» ARTICLE IV THE.ASSOCIATION Section 1.Membership.Every person or entity who or which is an Owner as defined hereinabove shall be a Member of the Association.The foregoing,however,is not intended to include any persons or entities who hold an interest in a Lot in the Project merely"as,security for the‘performance of man obligation..All memberships in the Association shall be appurtenant to the Lot owned by-each Member,and nemberships in the Association shall not he assignable,except to the person or entity to whom the title to the Lot has been transferred,as provided in Section 7 hereinbelow.Own- ership of such Lot shall be the sole qualification for membership in the Association.The memberships in the Association shall not be transferred,pledged or alienated in any way,except upon the transfer of title to said Lot,and then only to the purchaser or Mortgages of such Lot.Any attempt to make a prohibited membership transfer shall be void and will not be reflected in the books of the Association. Section 2.-Voting Rights.The Association shall have two_(2)classes of voting membership,as follows: (a)Class A.Class A Members shall be all Owners, with the exception of the Declarant until such time as the Class. B Membership terminates,and shall be entitled to one (1)vote for each Lot owned.When more than one (1)‘person holds an interest in any Lot,all such.persons shall be Members.The vote for such Lot-shall be exercised as they determine among .themselves,but in no event shall more than one (1)vote be cast with respect to any Lot.iThe Association shall recognize the vote cast by a co~Owner,unless another co-Owner shall cast a -28-.5‘J_D']-'5 .G03 -11492 .FCM 031405 conflicting vote,in which case both votes shall be null and void,and not recognized by the Association.The nonvoting co- Owner or co~Owners shall be jointly and severally responsible for all of the obligations imposed upon the jointly-owned Lot.‘ (b)Class B.The Class B Member shall be the Declarant and shall be entitled to three (3)votes for each Lot owned in the Project upon which Declarant is then.paying the ap- propriate monthly Assessments provided for hereinbelow.The Class B membership shall cease and be converted to Class A membership>upon.the happening of either of the following events, whichever occurs earlier:- (1)The second anniversaryrof the first closeaof Aescrow for the sale of a Lot pursuant to the original issuance by the DRE:of the most recently issued Final Subdivision Public Report for a Phase of the Project; (2)The fourth.anniversary of the first close of an escrow for the sale of a Lot pursuant to the original issuance by the DRE of the first Final Subdivision Public Report for the Project;or . (3)_December 31,2011. e .Any action by the Association which must have the approval of the membership of the Association before being undertaken,shall require the vote or written assent of both a majority of the Class B, -membership as well as a majority of the Class A membership,so long as there are two (2)cmmstanding classes of membership,unless a ‘specific provision of this Declaration or the By—Laws or.Articles of the.Association requires (i)the approval of a greater percentage of the voting membership,or (ii)a vote by Members other than Declar- ant,or {iii}a specific approval percentage of all the members. Notwithstanding the foregoing,"any action by the Association pursuant to the Article contained herein entitled "Enforcement of Bonded Obligations"shall only require a majority of the voting power of the Owners,other than Declarant. Section 3 .e Special Votinq Procedures For Appointment to the Board.The Declarant shall be entitled to solely appoint a majority of the members of the Board until the first to occur of the following events: -(a)The election of the Board immediately following the close of escrow by Declarant of one hundred seven (10?)Lots in the Project;or r A - (b)December 31,2010- 50'0'I"6.p03—11492.FCM 031406 -29- In the ‘event Declarant shall not have sold and closed escrows for at least one hundred seven (107)Lots by December 31, 2010,Declarant’s right to elect a majority of the members of the Board shall be automatically extended until the aforesaid number of Lots have been sold,but in_no event later than December 31,2011. Notwithstanding the foregoing,the Class.A.Members shall be entitled to elect at least one of the members of the Board,so long as there are two (2)classes of membership outstanding in the _Association. Section 4.Vestinq of Voting Rights.The voting rights attributable to any given Lot in the Project as provided for herein shall not vest until the Assessments provided for hereinbelow haves been levied by the Association against said Lot. Section 5.Adiustment of Voting Rights.The voting rights in the Association shall be adjusted on the first day of the month immediately following the first close of an escrow for the sale of a Lot in a subsequent Phase of the Project.A Section 6 .Suspension of Voting Rights.The Board shall have the authority to suspend the voting rights of any Member to vote at any meeting of the Members for any period during which such Owner ,is delinquent in the payment of any Assessment,regardless of type, it‘being understood that any suspension for nonpayment of any Assessment shall not constitute a waiver or discharge of the Member's obligation to pay the Assessments provided for in this Declaration.. Section 7.W Transfer.The Association membership held by any Owner of a Lot shall not be transferred,pledged or alienated in any way,except as incidental to the sale of such Lot,and the membership shall be automatically transferred upon the sale of such Lot.In the event of such sale,the Association membership may only .be transferred,pledged or alienated to the bona fide purchaser or purchasers of the Lot,or to the Mortgages (or third party purchaser) of such Lot upon a foreclosure sale,deed in lieu or other remedy set forth in the mortgage.Any attempt to make a prohibited transfer is void and will not be reflectedupon the books and records of the Association.‘The Association may levy a reasonable transfer fee -against new Owners and their Lots (which fee shall be a Compliance Assessment chargeable to such.new'Owner)to reimburse the.Association for the actual administrative cost of transferring thermemberships to the new Owners on the records of the Association._ Section 8.Record Dates.For the purposes of determin- ing Members entitled to notice of any meeting,to vote or to exercise any other rights with respect to any lawful action,the Board may fix. in advance record dates as provided in the By—Laws. _.3{)_ SOD76.003-1l492.FCM 031496 up . Section 9.'Notices.All notices and demands shall be given in writing by personal delivery,express mail,or by certified mail,postage prepaid,and.return receipt requested.Notices shall be considered given on the earlier of (a)receipt,if personally delivered or express mailed to the addressee,or to a partner or an officer of the addressee if the addressee is a partnership or ,5dO76.003-11492.FCM 031405 corporation,or (b)forty—eight (48)hours following deposit in the United States mail,or (c)verified delivery by facsimile,provided any such "fax"or facsimile is followed by delivery in accordance with (a)or (b)herein.Notices shall be addressed as determined by the Board and shall continue until changed by the Board in the format ofia written notice. ARTICLEIV IPOWERS AND DUTIES OF THE ASSOCIATION Section 1.'Management Body.The Association is hereby designated as the management body of the Project.The Members of the Association shall be the Owners in the Project,as provided herein, and the affairs of the Association shall be managed by a Board of Directors,as more particularly set forth.in the By—Laws.The initial Directors shall be appointed by the Declarant.Thereafter,the Board shall be elected as provided in said By—Laws. Section 2.‘_Powers.The Board,for and on behalf of the Association,shall have the right and power to do all things nec- essary to conduct,manage and control the affairs and business of the Association.Subject_to the provisions of the Articles,the By—Laws and this Declaration,the Board.shall have all general powers authorized under the California Corporations Code for nonprofit, mutual benefit corporations,and shall have,but not be limited to, the following specific powers: (a)Enforce the provisions_of_this Declaration (including but not limited to the ability to record a notice of noncompliance or violation),including any amendments thereto,’ and all contracts or any agreements to which the Association is a party;i I .(b)tAcquire title,manage,maintain,repair and replace.all Common..Area and.Improvements located,thereon, including all personal property,iryea neat,clean,safe and attractive condition.at all times,and.jpay'all utilities, gardening and other necessary services for the Common.Area,all as more specifically set forth in the Article herein entitled "Repair and Maintenance"; -31.. (c)Maintain fire,casualty,liability and worker's compensation coverage,fidelity bond coverage and other insurance coverage pursuant to the terms of that Article herein entitled "Insurance";- (d)Obtain,for the benefit of the Common Area,all commonly metered water,gas and electric services,and provide for refuse collection.and cable (or CATV)television service (if applicable);A ; (e)g Grant easements or licenses,where:necessaryg for utilities and sewer facilities over,on and across the Common Area to serve the Project; P (f)Pay all taxes and special assessments which would _be a lien upon the entire Project or the Common Area,and discharge any lien or encumbrance levied against the entire lProject or the Common Area; (g)Levy and collect Assessments on the Owners of all Lots in the Project in which Assessments have commenced,and enforce payment of such Assessmentsvin accordance with the terms and provisions set forth in the Article herein entitled "Effect of Nonpayment of Assessments:Remedies of the Association“; A (h)Pay for reconstruction of any portion of the Common Area damaged or destroyed; (i)Employ and retain a professional manager and/or management company to perform all or any portion of the duties and responsibilities of the Board and engage such other personnel (including attorneys,budget preparers,and accoun» tants)as necessary"for the operation.of the Project and administration of the Association;'' (j)Enter into any Lot when necessary in connection with maintenance or construction for which the Association is responsible;A ,— (k)Contract with .Declarant,its successors or assigns,for thepurpose of entry into a maintenance and/or subsidy"agreement,made by and between.Declarant and.the Association,for the purpose of temporarily reducing and/or abating the financial obligations of Owners in the Project; .(1)Purchase such other labor,services,materials, supplies and the like,as needed for the proper maintenance of the Common Area and/or proper operation of the Association; ~32;50076.003—11492JFCM 031495 P (m)Adopt reasonable Rules and Regulations concerning the maintenance,improvement,use and/or occupancy‘of any -portion of the Project and election procedures in compliance 1 with California Civil Code Section 1363.03;6 (n)’Grant exclusive easements to Owners over portions of the Common Area in-accordance with California Civil Code Section 1363.07,as same may be amended from time to time,and with the assent of sixty-seven.percent (67%)of the voting power of the Association;*3 (o)Execute lot line adjustments (and corresponding deeds),enter into a maintenance and/or other agreement with Declarant or a third party,subject to Civil Code Section 1363.07,if applicable,grant fee title to or easements over the Common Area to Declarant or a third party,and/or receive fee title to or an easement over real property owned.by Declarant or a third party as reasonably necessary due to those conditions in the field where it is not readily apparent where Lot lines are_ located and the respective party's maintenance responsibilities commence and end,and such adjustments,deeds and/or agreements will promote a clearly defined and uniform maintenance plan by the respective parties;'-A (p)Grant easements or licenses to any public agency, governmental entity or utility,where necessary,for utilities and sewer facilities on,over and across the Cbmmon Area to serve the Project for purposes consistent with the use and enjoyment of the Common Area;- -gag.of=the California Civil Code,as same may be amended from time to time,institute,defend,settle or intervene on behalf of the Association in litigation,arbitration,mediation,or 3 administrative proceedings in matters pertaining to (i) (q)Subject to compliance with Section 1369.510 gt, enforcement of the Declaration,Rules and Regulations and By~, Laws;(ii)damage to the Common Area;and (iii)damage to the Lots which arises out of,or is integrally related to,damage to the Common Area that the Association is obligated.to maintain.or repair;‘- (r)_As applicable,comply with terms and provisions of California Civil Code Section 1375,as amended,in connection with any potential litigation based upon a claim for defects in the design or construction of the Common Area;- .y (s)Authorize an agent,management company represen- tative,or bookkeeper to appear and participate in a small claims court action on behalf of the Association in accordance with California Code of Civil Procedure Section 1l6.540(i),(j);i -33- SOD76,003—ll492.FCM 031405 (t).Without any limitation of the foregoing powers, (i)operate,maintain,and inspect the Common Area and its various'components in conformance with any Maintenance Guide- lines and anyi Maintenancei Manual,rproduct manufacturers’ recommendations and guidelines,and commonly accepted mainte- nance principles,and (ii)review any Maintenance Manual for necessary or appropriate revisions as deemed necessary by the Board (Declarant recommends at least an annual review); '(u)Cause a notice regarding "Assessments.And Foreclosure"to be prepared and annually distributed to each Member of the Association in accordance with California Civil ,Code Section 1365.1,as-the same may be amended from time to time.Except as otherwise provided in California Civil Code Section 1365.1,as the same may be amended from time to time, the notice shall be printed in 12-point type and shall be distributed during the sixty (60)day"period immediately preceding the beginning of the Association's fiscal year. (v)Perform any and all other acts and things that a nonprofit,mutual benefit corporation organized under the laws of the State of California is empowered tm>c&3,which may be necessary,convenient or appropriate in the administration of its affairs for the specific purposes of meeting_its duties as set forth in this Declaration. A Section 3.Duties.Notwithstanding'tfl u2.Association’s obligations,as more specifically set forth in the Article herein entitled,"Repair and lwaintenance,”‘the IBoard.shall.perfornl and execute the following duties for and on behalf of the Association: (a)Own,maintain and operate the Common Area,for _the common use and benefit of all Owners in the Project; (b)Provide,water,sewer,gas,electricity,garbage the Common.Area.and,if not separately metered or provided,for the Lots (subject to reimbursement);'A .' ,(c)Provide insurance for tflu2.Association and its Members in accordance with the jprovisions .of the .Article hereinbel-ow entitled "Insurance"and distribute any notices thereof required by law,as same may be amended,from time to time;’. (d)Accept,as part of the Project,all property iincluded in or annexed to the Project,in accordance with the terms and provisions of this Declaration,and accept all Owners as Members of the Association.In addition,the Association shall accept all Common Area conveyed,leased or otherwise -34--50076 .003-1.1492 .FCM 031406 and trash collection,and other necessary utility services form 50076.003 -11492 .FCM 031405 -—- transferred to ix;:LE any,by Eeclarant,its successors or assigns,or appropriate governmental agency; (e)Maintain and repair all portions of the Common Area in a neat,clean,safe,attractive,sanitary and orderly condition at all times and paint,maintain,repair and replace all of the Common Area Improvements so as to keep same in a neat,clean,safe,attractive,sanitary’and.orderly'condition.at all times (e.g.,in a scheme and condition as initially installed by Declarant and approved by the City).Without limiting the generality of the foregoing,the Association shall be responsible:for ‘maintaining the following:(1)~private streets and parking areas;(2)Project entry gates,monumenta- tion,and lights,(3)landscape maintenance areas located within certain Lots and on real property outside of the Project (e.g., for Phase 1,see Exhibit "A"attached hereto);(4)all common open space and recreational areas and the Improvements thereon (e.g.,pool,spa,tot lot with.playground equipment,benches, tables,common trash receptacles,gazebos);(5)the structural integrity;exterior‘and.top;portions of'certain.perimeter walls, fences,and.retaining ‘walls (see .Exhibit "C"Ihereto);(6) private storm drainage facilities described and/or depicted in‘ this Declaration.or inirecorded Notices of.Annexation.(e.g.,see Exhibit "D"attached hereto and incorporated by reference);(7) all clustered mailboxes and light standards;and.(8)all related systems iJ1;a condition comparable txj the condition initially approved by the City;a (f)Pay all real and personal property taxes and .Assessments which.the .Association is required.to ‘pay for pursuant to the terms and provisions of this Declaration or by law,unless separately.assessed to Owners;provided,however, that it shall be _the obligation of each Owner to pay his respective share of the tax assessment levied on the Project prior to separate assessments by the Tax Assessor pursuant to ,the applicable provisions of the California.Revenue and.Taxation Code; (g)Contract ifor any other;material,gupplies, ‘furniture,labor,_services,maintenance,repairs,structural alterations and insurance which the Association is required to pay for pursuant to the terms and provisions of this Declaration or by law; (h)Cause periodic.inspections,maintenance,and servicing of all private structural BMP.-3.,private concrete terrace drains,and other private storm drainage facilities located within the Common Area (e.g.,see Exhibit "D")to be .made as required by law,and otherwise comply with all National Permit Discharge Elimination System (fiNPDES”), _35_ Stornl Water Pollution Prevention Plan ("SWPPP"),and.Best Management Practices Guideline requirements that are applicable to the Project (e.g.,annual reporting,if applicable); (i)Cause financial statements—fortjmaAssociationtx3 be regularly prepared and copies distributed to each Member of the Association,regardless of the number of Members or the amount of assets of the Association:~ 1 (1)A.prc>fornm.operating statement (budget)for each fiscal year shall be distributed within the time period specified by statute prior to the beginning of the‘ fiscal year (e.g.,not less than 30 days nor more than 90 days prior to the beginning of the fiscal year),and shall contain the following information:' p i)=An itemized estimate of the Associa- _tion’s revenue and expenses,determined on an accrual basis; ii)A summary,printed in bold type,of the current status of the Association's reserves,based upon.the _most recent review or study conducted pursuant to California Civil Code Section 1365.5 ("Study"),as may be amended,from time to time,and prepared in accordance with all requirements of law (e.g.,Civil Code Section 1365,1365.2.5); iii)A statement prepared in accordance with all requirements of law (e.g.,,Civil Code Section 1365,1365.2)as to both of the following: a)—Whether the Board has determined or anticipates that the levy of one (1)or more Special Assessments will be required to repair, replace or restore any major components (e.g., Improvement to the Common Area)or to pmovide adequate reserves therefor;and ’r b)The mechanism cn:mechanisms kmr which the Board will fund reserves to repair or replace major components,including assessments, borrowing,‘use cfif other‘assets,deferral of selected replacement of repairs,or alternatives mechanisms. 5 -iv).A general statement prepared in accordance with all requirements of law (e.g.,Civil Code Section 1365,1365.2)setting forth the proce~ (dures utilized by the Association to calculate and -36450076.O03-114 ‘32'.FCM 031406 50076.G03-11492 .PCM 031406 establish reserves to defray the costs of future repairs,replacements or additions to the Common.Area Improvements.‘ aNotwithstanding the foregoing,in lieu of distributingtfl m2prt>fornm.budget required hereinabove,the Board may elect to distribute a summary of the pro forma budget to all Members with a written notice,in at least 10-point bold type on the front page,that the pro forma budget is available at the business office of the Associa- tion,or at another suitable location within the Project, and that copies will be provided upon request and at the expense of the Association.If any Member requests that a copy of the pro forma budget required herein be mailed to said Member,the.Association shall provide the copy to the .Member by first—class mail at the expense of the Associa—, tion,and nailed within five (5)days of the receipt of said request;A (2)oAtbalance sheet as of an accounting dated which is the last day of the month closest in time to six (6)months from the date of closing for the first sale of* a Lot,and an operating statement for the period from the date of the first closing to the said accounting date, shall be distributed within sixty (60)days after the ,accounting date;A -‘ (3)An annual report consisting of the following shall be distributed within one hundred twenty (120)days after the close of the fiscal year:-‘ i)A balance sheet as of the last day of the Association’s fiscal year; i_i)An operating (income)statement for the ~ fiscalgyear; ,iii).A statement rxf changes iii financial position for the fiscal year;and iv)Information,if any,required to be reported pursuant to Sections 8322 and 1365 of the California Corporations and Civil Codes,respectively,‘ as same may be amended from time to time. _-This annual ireport shall ordinarily‘be prepared by a licensee of the California Board of Accoun- tancy;zui accordance vwhfli generally accepted accounting principles,for any fiscal year in which the gross income of the Association exceeds Seventy~Five Thousand Dollars ,-37, SGO'?6._D03 -_11¢193.FCM 031405 ($75,000.00).However,if for any reason the report is not prepared by a licensee of the California Board of Accoun« tancy,said report shall be accompanied by a certificate from an authorized officer of the Association that the statements were prepared without audit from the books and records of the Association}C (4)A statement of the Association’s policies and practices in.enforcing its remedies against Members for nonpayment of Assessments,as set forth in the Article ‘herein entitled "Effect of Nonpayment of Assessments: Remedies of the Association,"which shall be distributed within.the time period required by statute prior to the be- ginning of the fiscal year (e.g.,not less than 30 days nor more than 90 days prior to the beginning of the fiscal“ year);and (5)A summary of the Association‘s general liability insurance policy,earthquake and flood insurance policy,if cnna or more has been issued,and liabilityt coverage policy for the Board,which includes statements and information required under California Civil Code Section l365(e),as same may be amended from time to time. Currently,-such items of disclosure include the following: (1)the name of the insurer;(2)the type of insurance;(3) the policy limits of the insurance;and (4)the insurance deductibles.-C The Association shall,as soon as reasonably practical,notify its Mernbersby first-class mail if any of the policies,described in Subparagraph (i)above have lapsed,been canceled,and are not immediately renewed, restoredor replaced,or if there is a significant change, such as a reduction in coverage or limits,or an increase in the deductible for any of those policies.If the iAssociation receives any notice of nonrenewal of_a policy described in the subparagraph above,the.Association shall immediately notify its Members if replacement coverage will not be in effect by the date the existing coverage will. (lapse.To the extent the information noted above is described within the respective insurance policies,the Association may distribute such information to the Members and be in compliance with the disclosure requirements of the referenced Civil Code Section.Notification regarding cancellation or pol icy"renewals must comply with Civil Code Secti.on l3.65(e)(2),as same may be amended from time to time.Currently,the summary distributed pursuant to Subparagraph (i)shall)contain,in at least 10-point boldface type,the following statement:"This summary of the .Association’s jpolicies of insurance jprovides only -39: 5ob7s.od3—11492.PcM 031405 certain information,as required by Subdivision (e)of Section 1365 of the California Civil Code,and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insur- ance.,Any .Association.Member may,upon request and yiprovision of reasonable notice,review the Association's insurance policies and,upon request and payment of reasonable duplication charges,obtain copies of those policies.Although the_Association maintains the policies of insurance specified in this summary,the Association'si policies of insurance may not cover your property,includ- ing personal property or real property improvements to or around your dwelling,or personal injuries or other losses that occur within or around your dwelling.Even if a loss is covered,you may nevertheless be responsible for paying all or a portion of any deductible that applies.Associa- tion Members should consult with their individual insurance broker or agent for appropriate additional coverage." ,_,(j)y The Board shall review on a quarterly basis,the ,following:' ~i).A current .reconoiliatidn,of"the Association’s operating accounts;i ii)A current‘reconciliation of amounts collected as reserves} iii)The current year’s actual amounts col- ylected as reserves anciexpenses compared to the current year*s budget; iv)An income and expense statement for the Association's operating and reserve accounts;and v)-The most current account "statements prepared..by ‘the financial:institutions ‘where the Association maintains its operating and reserve accounts. A i _Withdrawal of funds from the Association's ‘reserve account shall require the signature of either:(i)i two (2)members of the Board;or (ii)one (1)member of the Board and an officer of the Association who is not also a member of its Board.As used in this Section,"reserve account"means moneys that the Board has identified from its annual budget for use to defray the future repair or replacement of,or additions to,those major components of the Common Area which the Association is obligated.to repair or replace cxiea periodic basis,rather than on a -39- regular annual basis.Except as may otherwise be allowed pursuant to Civil Code Section l365.S(c),the Board shall not use any funds collected and budgeted as "reserve" moneys for any costs and/or expenses that are not related to repair and/or replacement costs for those elements of the Common Area that must be repaired and/or replaced on a periodic basis.Notwithstanding the foregoing,temporary transfer of funds may occur in compliance with Civil Code Section 1365.5,as same may be amended from time to time. In the event reserve funds are temporarily transferred to pay'for litigation,the Board shall comply'with.the disclo- sure and notification requirements of Civil Code Section 1365.5(d),as same may be amended from time to time. (k)At-least once every three (3)years,cause a study of the reserve account requirements of the Project to be conducted if -the current replacement value of the,major components which the Association is obligated to repair, replace,restore or maintain is equal to or greater than one- half (1/2)of the gross Association budget for any fiscal year of the Association._In connection with such study,the Board shall cause to be conducted‘,if required by law,a visual inspection of the accessible areas of the major components of the Common Area which the Association is obligated to repair, replace,restore,or nmintainn iflna Board shall consider and implement,as the Board determines appropriate,any necessary. adjustments to the Board's analysis of the reserve account requirements as a result of such review.ffima reserve study shall consider and include,at a minimum,the requirements set forth in.Section l365.5(e)of the California Civil Code,as the same shall be amended,from time to time.Upon receipt of a written or verbal request from the City,the Board shall make the reserve study available to the City for review; I (l)Assume_and pay out of the Assessments provided ifor hereinbelow all costs and expenses incurred by the Associa- tion in connection with the performance and execution of all of the aforesaitlpowers and duties,and any other'pOwers and duties the .Association.may"assume as provided for in Section 4 hereinbelow; (m)Formulate,adopt and.enforce such.Rules and Regulations as itmay deem proper for the operation of the Common Area anden3necessary'to'establish.election procedures in icompliance with California Civil Code Section 1363.03,as more particularly described herein.Notice of adoption of any such Rules and Regulations and of any change,amendment or repeal thereof,shall be given in writing to each Member and shall be on file in the principal office of the.Association.In the event 300176.003-11492.FC'M 03140.5 “4O" of any conflict between such Rules and Regulations and this Declaration,this Declaration shall prevail;. (n)Enforce all‘applicable -provisions of this Declaration,the Articles,By—Laws and such Rules and Regu- lations of the Association and Architectural Review Committee, ‘and of all other documents pertainimg to the ownership,use, management and control of the Project; (o)Give notices in writing to FHLMC,FNMA and.GNMA, and other lenders and investors participating in the financing of the sale of Lots in the Project,as required herein; (p)Make the records of the Association available to Members for inspection and copying within the time periods specified in applicable law (e.g.,Civil Code Section 1365.2); ,(q)Elect the officers of the Association and fill any vacancies on the Boards except if such vacancy is created by the removal of a Director;'~' .(r)Appoint the Members to tflua'various Committees formed Int the Board.(e.g.,time Nominating’Committee,‘the Architectural Review Committee,etc.)as more particularly set forth herein or in the By—Laws;‘ (s)Cause a summary of the provisions of Section_ l369.590“of-the California Civil Code,as same may be amended from tine txd time,regarding alternative dispute resolution iprefiling requirements and.which specifically reference Section 1369.510 et seg.of the Civil Code,to be prepared and annually distributed to each Member of the Association.The summary shall.be provided either at the time the_pro forma operating pbudget is distributed herein or in the manner specified in Section.5016 of the California Corporations Code,as same may be amended.from "time to ‘time.The summary shall include a description cu?the Association's internal dispute resolution process,as required by Section 1363.850 of the Civil Code; (t)Without any limitation of the foregoing duties, (i)operate,maintain,and inspect the Common Area and its various components in conformance with any Maintenance Guide- lines "and any Maintenance Manual,product manufacturers’ recommendations and guidelines,and commonly accepted mainte- nance practices and (ii)review any Maintenance Manual for necessary or appropriate revisions as deemed necessary by the Board (Declarant recommends at least an annual review); *41—a5U076.003-11492fFCM 031405 50076-00}-11492.FCM O3l40E fu)Comply with the provisions of California Civil Code Section 1375,as same may be amended from time to time,as. provided hereinbelow. (v)Adopt and provide as fair,reasonablei and expeditious procedure for "resolving disputes between the , Association.and Members that complies with.applicable law (e.g., Civil Code Section 1363.810 et seq.)which,if the Board so decides,may be the procedure set forth in Civil Code Section 1363.840;and (w)As required by applicable law [e.g.,California icivil Code Section 1378(c),as the same may be amended from time to time,‘or any successor statute],cause a notice of any requirements for.Association approval of physical changes to Lots or Common Area to be prepared and annually distributed to Members.The notice shall describe the types of changes that "require Association approval and shall include a copy of the procedure used to review and approve or disapprove a proposed change.'. Section 4..'Discretionary Powers.The Board,at its option,may assume,perform and emecute the following powers and duties for and on behalf of the Association: (a)Retain the services of a manager for the Project and provide.such other personnel as the Association deems- necessary and proper to assist in the operation of the Associa- ,tion.and/or management of the Common Area,regardless of whether such other personnel are employed.directly by the.Association or otherwise,and enforce the Entitlements From City relating V-directly or indirectly to the development of the Project; (b)Remove or replace any Improvement that extends into the Common.Area under authority of an easement when access to a utility line underneath such Improvement is requested by any utility company;provided,however,that the cost shall be iassessed against the Owner of the Lot involved as a Compliance Assessment if said Owner caused the Improvement to be so placed in_the Common Area without legal right to do so; (c)Incur any liability or pay any costs or expenses for a single Lot or Owner thereof;provided,however,that in the event the Association does incur any such liability or payi any such costs or expenses,the amount thereof shall be specially assessed to the Owner of such Lot as a Compliance .Assessment;provided.further,however,that nothing herein.shall permit the Association to assess the Owners for any new Improve- iments to the Common Area,except as otherwise provided in this Declaration;and -42- (d).Subject to the limitations set forth in this Article,contract for any cther material,furniture,labor, services,maintenance,repairs,structural alterations or) insurance,or pay any taxes or.Assessments which,in the opinion of the Board,shall be necessary or proper for the operation of the Common Area,for the benefit of the Owners or for the enforcement of this Declaration.P Section 5.Alternative Dispute Resolution Provisions. Declarant,the Association .(by acceptance of a deed to the Common Area),and each Owner (by acceptance of a deed to a Lot)agree to the provisions set forth in this Section 5 and its subsections (collec~ tively,"ADR Provisions").O (a)i Definitions.For purposes of these ADR Provi- sions only,the following-definitions applyi _(1)"Declarant"means and includes Declarant,as defined in Article I,Section 15 of this Declaration."De- clarant"shall also include any of the following if they are bound or agree to be bound to the following or similar dispute notification and resolution procedures:wany director,officer,partner,attorney,member,employee, agent,or representatiwe of Declarant,any affiliate of Declarant (other than an affiliated mortgage lender),or any contractor,subcontractor,consultant,design profes- sional,engineer or supplier who provided labor,services or materials to the Project (each,a "Declarant Party"). (2)Fgigppge"means any and all claims,contro-i versies,breaches,actions or disputesbetween any De- clarant Party,on the one hand,and any Owner and/or Association,on the other hand,arising out of or in any way relating to the Project,any Lot,Common Area,‘or Improvements in the Project,this Declaration,a purchase_i and sale contract between an Owner and Declarant for the purchase and sale of a Lot ("Contract"),the Home Buyerfs Warrantyy and/or any other agreements or duties or liabili-i ties as between any Declarant Party and any Owner and/or Association relating to the sale or transfer of a Lot or Common Area,or regarding the use or condition of a Lot, and/or Common Area,or the design or construction.of or any condition on or affecting the Project and/or Lot and/or 'Common Area in the Project,including,without limitation, construction defects,surveys,soils conditions,grading, specifications,installation of improvements or disputes which allege breach of contract,negligent or intentional misrepresentation or fraud,nondisclosure,breach of any alleged:duty cu?good faith.and.fair ,dealing,strict_‘ liability,negligence,,breach of implied or jexpress 50076.00}-1l492.E'CM 03-1406 . »'"'43- sod7s.oo3—11a92.FcM 031405 -warranties as to the condition of a Lot,Common Area or other portions of the Project,or any other matter arising from or relating to the interpretation or enforcement of this Declaration (including these ADR Provisions)."Dis- putes"do not include actions,taken by the Association against Declarant to collect delinquent.Assessments or any action involving any Common Area completion bonds. (3)"Disputes Covered By Home Buyer’s Warranty. i The term "Home Buyer's Warranty"means the 2-10 Home Buyer's Warranty given by Declarant to an Owner in connec- tion with the sale of a Lot by Declarant to the Owner (a sample draft of which is attached hereto as.Exhibit "J"). As set-forth in Exhibit ,"I"attached hereto,Declarant disclaims any‘and.all ‘express and implied.warranties‘ relating to the Lots,Common Area and Project other than‘ .the Home Buyer's Warranty.Any Dispute that is covered by the Home Buyer's Warranty shall be submitted to binding arbitration by and pursuant to the arbitration provision contained in the most recent edition of the HEW Limited Warranty Booklet as of the date of the execution of the applicable Contract Hfl mebooklet hasIbeen.made available to each original purchaser of a Lot from the Declarant,and is incorporated by reference,and.made a part of,each Contract).In the event of any conflict between the HBW _Limited Warranty Booklet and this Eeclaration regarding issues subject to the Home Buyer’s Warranty,the provisions of the HEW Limited Warranty Booklet shall control.-Except as may be provided by the Home Buyer's Warranty,if applicable,the provisions of these ADR Provisions do not establish any contractual duty,obligation,or warranty {express or implied)on the part of Declarant to repair, replace or cure any defect in any property which is the subject of the Dispute.Other than the express warranties contained in the HBW Limited Warranty Booklet,Declarant expressly disclaims,and the Association and each Owner waive,any and all warranties,whether express or implied, to the_maximum extent permitted by.law.The right to ‘inspect and correct granted in these ADR Provisions is in addition to the rights granted in California Civil Code Section 1375 ("Calderon Act").The procedures established in the Calderon Act may be implemented,before,during or after the procedure in these ADR Provisions is implemented. (b)Pre—Litigation Procedures.Except as otherwise provided in the Home Buyer’s Warranty,in the event of a Dis~ puts,the Association and each Owner shall comply with Declar- ant’s pre—-litigation procedure as noted below.This pre- litigation procedure (i.e.,alternative non—adversarial procedure)differs fromzmuiis provided.in lieu.of the statutory non—adversarial procedures set forth in Chapter 4 of Title 7 in M44- Part 2 of Division 2 of the California Civil Code ("Title 7"), which has been provided to each Owner,which also impacts each Owner's legal rights.Each Owner agrees to be bound by and to comply with the preelitigation procedure noted herein and not the procedures of Chapter 4 of Title 7.Each Owner,on behalf of itself and its successors and assigns,also agrees to provide .copies of the pre—litigation procedure to any ‘subsequent purchaser of the said Ownerfs Lot.If the pre-litigation procedure does not result in a resolution of the Dispute,or if 'a Dispute is not subject to the pre-litigation.procedure for any reason,the Dispute shall be resolved through the adversarial dispute resolution procedure noted below or the Home Buyer's Warranty,as may be applicable.The pre-litigation procedure supplements the procedures for resolving claims set forth.in the Home Buyer's Warranty;however,in the event of a conflict between the procedures,the procedures of the Home Buyer’s ,Warranty shall prevail with respect to Disputes governed by the Home Buyer's Warranty.*' (1)Notice and Opportunity to Cure.Any person. asserting a Dispute shall notify the Declarant in writing of the Dispute..(i.e.,by personal or mail service as authorized by Code of Civil Procedure Sections.415.10, 415.20,415.21,415.30 or 415.40 to the party to whom the Dispute is directed),which writing shall describe the nature of the claim and any proposed remedy (the "ClaimiNotice").‘Within a reasonable period [not to exceed sixty (60)days]after receipt of the ClaintNotice,the Declarant and the claimant (and any other Declarant Parties provided with the Claim.Notice)shall meet at a mutually acceptable place within the Project to discuss the Dispute.At such meeting or at’such other mutually agreeable time,the Declarant and the Declarant’s representatives,as noted above,shall have and/or be provided with full access to the property that is the subject of the Dispute,and shall have the right to conduct inspections and testing,includ- ing destructive or intrusive testing,of the same,in a manner deemed appropriate by Declarant,which rights shall continue until such time as the Dispute is resolved.The parties to the Dispute shall negotiate in good faith in an attempt to resolve the claim“If Declarant elects to take any corrective action,Declarant and.Declarant’s represen- tatives shall be provided full access to the property which is the subject of the Dispute and the Project to take and complete corrective action.Declarant shall not be liable for any general,special or consequential damage,cost, diminution in value,or other loss which Owner may suffer was a result of any defect in the property which is the subject of the Dispute,which reasonably might have been." avoided had.Owner,given to‘Declarant the notice and opportunity to cure described in this subsection.Except _45_ 50076 .‘OO3 -11492 .1‘-‘CM 031406 as may’be ‘provided;by the Iflome Buyer’s Warranty;if applicable,the provisions of this subsection.do not estab- lish.any contractual duty,obligationq or warranty (express or implied)on the part of Declarant to repair,replace or cure any defect in the property which is the subject of the Dispute.Other than the express warranties contained in the iHBW’Limited.‘Warranty'Booklet,Declarant expressly disclaims,and the Association and each Owner waive,any- and all vmumanties,whether express cm:implied,to the maximum extent permitted by law.The right to inspect and correct granted in this subsection is in addition to the rights granted 3J1 California Civil Code Section.1375 ("Calderon Act").The procedures established in .the .Calderon Act may be implemented,before,during or after the ADR Procedures are implemented.‘ (c)-Adversarial ‘Dispute iResolution Procedures- Bindinq Arbitration.WITH RESPECT TO ALL DISPUTES SUBJECT TO THE HOME BUYER'S,WARRANTY,DECLARANT,EACH OWNER AND THE ASSOCIATION SHALL COMPLY WITH THE DISPUTE RESOLUTION AND ARBITRATIONA PROCEDURES AND PROVISIONS SPECIFIED IN THE HOME BUYER’S WARRANTY,ALL WHICH ARE GOVERNED BY THE FEDERAL ARBITRATION.ACT (9 U.S.C.§§1-16).The Association and each Owner acknowledges and agrees that the Eknma Buyer's Warranty forms to be issued have been made available to Association and each Owner for review,that the Association and each Owner has made such review_of the Home Buyer's Warranty and the.dispute resolution procedures specified therein as the Association and each Owner deems necessary‘and appropriate,_and that the Association and each Owner consents to participation in such procedures for resolution of Disputes.Any Dispute concerning the interpretation or the enforceability of this Declaration, including,without limitation,its revocability or voidability for any cause,any challenges to the enforcement or the validity of this Declaration,or the scope of arbitrable issues hereun~ der,and.any’defense irelating‘to the enforcement.of this Declaration,including;without limitation,waiver,estoppel,or laches,shall be decided by an arbitrator in accordance with this Declaration and not by a Court of law.— Y '(1)E§§§.y Notwithstanding the dispute resolu- tion procedures specified in the Home Buyer’s Warranty and iupon written request of .an Owner‘or the Association, Declarant agrees to pay on the Owner's or Association's behalf (or,upon satisfactory evidence,to reimburse them) the fees necessary to initiate the arbitration proceeding; Declarant,and/or Owner and/or the Association may agree to .otherwise change the applicable dispute resolution proce- dures,but only by a written agreement to do so signed by both the Owner and/or Association,whichever is applicable, and Declarant.A * -4e~_50076 .003 -11492 .FCM 031406 (2)Federal Arbitration.Act Is Applicable.The procedures specified in the Home Buyer’s Warranty and these ADR Provisions,are to be interpreted and enforced as authorized by the Federal Arbitration Act (9 U.S.C.§§1« s16),which is designedto encourage use ofalternative methods of dispute resolution that avoid costly‘and potentially lengthy court proceedings.-Interpretation and application of these procedures shall conform to Federal court.rulings interpreting and applying the Federal .Arbitration Act.References to California procedural law shall not be construed as a waiver of any rights under the Federal (Arbitration Act or of any rights to have the procedures set forth in the Home Buyer's Warranty and/or these ADR Provisions interpreted and enforced under the Federal Arbitration Act.'I I (3)Binding Arbitration”All Disputes shall be submitted to binding arbitration by and pursuant to the srules of<31nstruction_Arbitration.Services,Inc.("GAS")in effect at the time of the initiation of the arbitration. In the event CAS is unwilling or unable to serve as the arbitrator,then Declarant shall be entitled to select another‘reputable arbitration.service cm:entity’which regularly provides arbitration services.In the event CAS is unwilling or unable to serve as the arbitration service, the parties shall select another reputable arbitration service.If the parties are unable to agree on an alterna- tive service,then either party may petition a court of competent jurisdiction in the County in which the Project is located to appoint such.alternative service,which.shall be binding on the parties.The rules and procedures of the arbitration service in effect at the time the request for arbitration is submitted shall be followed,subject to the following provisions.- (a)General arbitration provisions. ,(i)Declarant,the Association (by accep- tance of a deed to the Common Area)and each Owner (by acceptance of a deed to-a Lot)expressly agree and acknowledge that the property affected by this Declaration involves and concerns interstate com—. merce and is governed by the provisions of the Federal Arbitration Act (9 U.S.C.§l,et seq.)now ‘in effect and as the same may from time_to time be amended,to the exclusion of any different or incon~‘ sistent state or local law,ordinance,regulation, or judicial rule.Accordingly,any and all Disputes shall be arbitrated —which arbitration_shall be mandatory and binding —pursuant to the Federal -4417- 500?6.D03-ll492.FCM 031406 Arbitration Act.To the extent that any state or “local law,ordinance,regulation,or judicial rule shall be inconsistent with any provision of the rules of the arbitration service under which the arbitration proceeding shall be conducted,the latter rules shall govern the conduct of the pro« ceeding.n l i (ii)'This Section shall inure to the benefit of,and be enforceable by,Declarant’s subcontractors,agents,vendors,suppliers,design professionals,insurers and any other person whom the Association or an Owner contends is responsible for any alleged defect in or to a Lot,the Common Area,or the Project or any improvement or appurte- nance thereto. (iii)As set forth above,Declarant shall initially advance the fees necessary to initiate the arbitration proceeding.Costs and fees of the proceeding on an ongoing basis shall initially be paid by the parties in such proportions as thew parties may agree,provided,that if the parties cannot agree,then in such proportions as the arbi- trator(s)shall determine.'At the conclusion of the proceeding,the arbitrator may determine that the costs and fees shall be borne by the parties_in_a different proportion or that one or the other of the parties shall bear the costs and fees for the entire proceeding.Each party shall bear its own attor~ neys’fees-and costs (including expert costs)for ‘ the arbitration; (iv)Written notice of the commencement _of the arbitration proceeding shall be given by the party demanding arbitration to the other party as promptly as possible,as provided in the rules and procedures of the arbitration service.Unless , otherwise agreed to by the parties,the arbitrator or arbitrators shall be selected no later than sixty (60)days from the date the arbitration administra- tor was mailed a request to arbitrate.' (v)The arbitration shall be conducted by a neutral,impartial-arbitrator or arbitrators and selected in accordance with California Code of Civil Procedure sections 1297.101,1297.111 through ,l297.ll9,inclusive,as the same may be amended from time to time,and such selections may be challenged -in accordance with California Code of Civil Procee 448-’30076 .0133-1l492 .I-‘CM 031406 dure Section 1297.124,as the same may be amended from time to time.- (vi)Unless otherwise agreed by the (parties,the arbitration shall be held in the County where the Project is located.‘ (vii)The arbitrator(s)shall commence, conduct,and conclude the arbitration proceeding in a prompt and timely manner in accordance with the rules and procedures of the arbitration service. (viii)The arbitrators are authorized to provide all remedies available in law or equity,for any cause of action that is the basis of the arbi- tration.C y (ix)The decision of the arbitrator shall be final and binding.The Association,each Owner and Declarant expressly agree that an application to confirm,vacate,modify or correct an award rendered by the arbitrator may be filed in any court of competent jurisdiction in the County in which the Project is located. (x)The participation by any party in any judicial proceeding concerning this paragraph or any .matter arbitrable hereunder shall not be asserted or accepted as a reason to delay,to refuse to partici- pate in,or to refuse to enforce this Section. (xi)_If any provision of this Section’ shall be determined by the arbitrator or by any. court to be unenforceable or to have been waived, the remaining provisions shall be deemed to be —severable therefrom and enforceable according to '.their terms.*i 4 ' .(xii)iDeclarant,the Association (by acceptance of a deed to the Common Area),and each Owner (by acceptance of a deed to a Lot)of a Lot in the Project agree to have any dispute arising out of the matters included in this paragraph entitled "Ad- versarial Dispute Resolution Procedures -Binding~ Arbitration"decided by neutral binding_arbitration- in accordance with the Federal.Arbitration Act and tthe California Arbitration Act,to the extent the California Arbitration Act is consistent with the Federal Arbitration Act,and Declarant,the.Associa5 tion,and each Owner are giving up any rights De- 549- 50076.OO3~11-192 .E'C'M 031406 clarant and Owner might possess to have the Dispute litigated in_a court-or jury trial as authorized by statute or federal law.If Declarant or Owner re- fuses to submit to arbitration after agreeing to this provision,Declarant,the Association,or Owner may be compelled to arbitrate under the Federal Arbitration Act and the California Arbitration Act, to the extent the California Arbitration Act is con- sistent with the Federal Arbitration Act. (d)-Judicial Reference.,In the event the arbitra- tion provisions in these ADR Provisions is determined to be p unenforceable in whole or in material part preventing its use or is held not to apply or is held invalid,void or unenforce-, able in its entirety for any reason,Declarant,the Associa- tion (by acceptance of a deed to the Common.Area),and each Owner (by acceptance of a deed to a Lot)agree that all Disputes shall be resolved in a lawsuit before a judge inia court of competent jurisdiction;provided that such lawsuit must be resolved by general judicial reference pursuant to California Code of Civil Procedure Sections 638 and 641 through 645,or any successor statutes thereto,and as modi- -fied by this paragraph.The referee shall have the power to grant all legal and equitable remedies,and award compensatory damages.Declarant,each Owner (by acceptance of a deed to a Lot),and the Association {by acceptance of a deed to the " Common Area)acknowledge,understand and agree that both the arbitration and judicial reference procedures noted herein,as applicable,involve a process whereby resolution of the D Dispute does not involve a jury trial and specifically ex- cludes a jury from any involvement in resolution of the Dispute.The parties to the Dispute shall cooperate in the judicial reference proceeding.Declarant,each Owner (by _acceptance of a.deed to a Lot),and the Association (by, acceptance of a deed to the Common Area)grant the general referee authority to decide all issues,whether of fact or law,including without limitation,the validity,scope and enforceability of this dispute resolution provision,and to report a statement of decision to the court.All parties shall use the procedures adopted by any entity offering 'judicial reference dispute resolution procedures as may be mutually acceptable to the parties,provided that the follow- ing rules and procedures shall apply in all cases unless the _ parties agree otherwise in writing:i~ ((1)The general referee must be a neutral and y impartial retired judge with substantial experience in real estate development and residential construc- ition matters.Any dispute regarding the selection of the referee shall be resolved by the entity -50- 500736.003-11492-FCM 031406 providing the reference services,or,if no entity is involved,by the court with appropriate jurisdic~ tion;a (2)The general reference proceeding shall proceed without a jury.Declarant,each Owner (by acceptance of a deed to a Lot),and the Association (by accep- tance of a deed to the Common Area)each hereby acknowledge,understand,and agree that this proce- dure does not involve a jury trial and that this procedure and the lack of a jury trial shall be binding upon their respective successors and assigns and upon all persons and entities asserting rights or claims or otherwise acting on behalf of them.or their successors and assigns.a (3)The parties shall be entitled to conduct all discovery as otherwise provided in the California Code of Civil Procedure,and the referee shall i oversee discovery and may enforce all discovery orders in the same manner as any trial court judge, with rights to regulate discovery and to issue ‘and/or enforce subpoenas,protective orders or other .limitations on discovery available under California. law.In the context of construction defect dis- putes,all parties shall be entitled to reasonable site inspections,visual inspections,destructive testing,and other.discovery mechanisms commonly C employed in such disputes; (4)The reference proceeding shall be conducted in “accordance with California law (including the rules of evidence),and in all regards the general referee shall follow California law as applicable at the time of the general reference-proceeding.The general referee may issue any remedy or relief, which the courts of the State of California could issue if presented the same circumstances,and the general referee shall follow and otherwise employ the standards for issuing such relief as defined by California law.The general referee may require one or more pre-hearing conferences.A stenographic record of the trial shall be made,provided that the record shall remain confidential except as may be necessary for post-hearing motions and any appeals.’ ,The general referee’s statement of decision shall ‘ contain findings of fact and conclusions of law to, the extent applicable.The,general referee shall have the authority to rule on all _post-hearing motions in the same ..5:Li S0076.003-1l492.FCM 031406 manner as a trial judge.The statement of decision of the general referee upon all of the issues con» sidered by the general referee shall be binding upon the parties,and upon filing the statement of deci—. sion with the clerk of any court of the State of California having jurisdiction thereof,or with the judge if there_is no clerk,judgment may be entered thereon.The judgment and decision of the general. referee shall be appealable in the same manner and ‘subject to the same rules as if rendered by the court.’ T (5) Any dispute involving third parties (i.e.,a person or entity other than Declarant,or Owner or the Association)shall be included in the general reference procedure prescribed herein to the extent permitted by law.All parties shall cooperate in good faith to ensure that all necessary and appro- priate parties are included in the judicial refer- ence proceeding. T (6)The exclusive venue for all general reference proceedings shall be in the County where the Project is located; (7)Except where attorneys’fees are awarded as an element of sanctions,the parties shall bear their own attorneys’fees in any proceeding conducted under this paragraph.Declarant shall initially advance all fees and costs necessary to initiate the general reference proceeding;however,the general "referee may,in his or her discretion,reallocate such fees and costs among the parties as the inter- ests of justice dictate."The general referee may award litigation costs to the prevailing party. This provision does not modify any provision of a contract between Declarant and any other entity other than an Owner requiring indemnification or establishing a different allocation of costs between Declarant and such entity. (8)If any provision of this paragraph shall be determined to be unenforceable or to have been waived,the remaining provisions shall be deemed to. be severable therefrom and enforceable according to their terms.y — _(e)Cooperation Clause.The parties to any Dispute shall at all times cooperate so as to permit compliance with 50076.003-11492 .FCM 031406 -52;- -the terms of these ADR Provisions and to accomplish their purposes. (f)Choice of Forum Clause.In the event any party to a Dispute subject to these ADR Provisions seeks review by a court of the enforceability of any of the ADR-Provisions set forth or referenced herein (despite the provisions herein ' making that issue one to be resolved by the arbitrator or general referee),the exclusive jurisdiction and venue for any isuch review shall be the Federal District Court for the County in which the Project is located.A j (g)Inspection Easements.Declarant reserves ease- ments to enter any Lot,including the interior of the Resiu dence and yard,and the Common Are in the Project,to inspect those areas and to conduct destructive testing referred to in California Civil Code §l375(d).However,the Declarant shall_ notify the Owner of the Lot or the Association (if the Common Area is to be inspected)of at least three (3)alternative dates and times when such inspection can take place (the I earliest of which shall not be less than ten (10)days after the notification is given)and the Declarant shall give the Owner or the Association (as applicable)the opportunity to specify which date and time is acceptable to the Owner or Association (as applicable).Should the Owner or Association (as applicable)not respond affirmatively with respect to one "of the dates and times within five (5)days,then the Declar~ ant may decide which of the dates and times the inspection and testing shall take place and so notify the Owner or Associa- tion (as applicable).Alternatively,the Declarant may seek ah. judicial order allowing such inspection and testing to take place.Declarant shall be entitled to its reasonably incurred attorney's-fees and be deemed the "prevailing party"should such a court order be sought and obtained.Declarant shall be obligated to fully repair any damage caused by any such C destructive testing.A A (h)Compliance.Declarant,the Association,and each Owner covenant to comply with the procedures described herein.If Declarant,the Association,or any Owner breaches the foregoing covenant,Declarant,the Association,or the Owner (as applicable)may obtain an appropriate order compel— ling Declarant,the Association or the Owner (as applicable)” to comply with the procedures described in herein. (i)Miscellaneous.Any and all communications by and between the parties,whether written or oral,which are delivered by the parties or their attorneys or other represen~ tatives in an effort to settle the matter shall be considered . communications undertaken in the course of effecting a settle- -534S0O'?6.003 -11492 .E-‘CM 031406 ment or compromise,and as such shall not be admissible as an admission on the part of any party or any representative or agent of that party to be utilized for any such purpose in any action or proceeding. Nothing herein shall be considered to reduce or extend any applicable statute of limitation.If at any time an action would be barred by a statute of limitation if not filed within sixty (60)days,then such action may be filed notwithstanding any other provision of this Section. (j)Manufactured Products Maintenance and Limited Warranty Information.Each Owner,as to his respective Lot, and the Association,as to the Common Area,acknowledge that Declarant has provided such Owner and the Association with manufactured product maintenance,preventative maintenance and limited warranty information pertaining to such Owner’s Lot and to the Common Area.,Declarant reserves the right,by written notice to each Owner and/or to the Association,to supplement and/or amend such manufactured product maintenance, preventative maintenance and limited warranty information from time to time.Each Owner and the Association also acknowledge that by law,such Owner and such Association are obligated to follow all reasonable maintenance and preventative maintenance schedules and obligations communicated in writing from Declar- ant,as well as commonly accepted maintenance practices.Each Owner and the Association covenant to faithfully follow all such maintenance and preventative maintenance schedules and obligations contained in all such manufactured product mainte- nance,preventative maintenance and limited warranty informa: tion (and each Owner shall require and cause any tenant or lessee of such Owner's Lot to follow all such schedules and obligations). A _(k)Indemnification.Each Owner of a Lot in the Project and the Association covenant to indemnify,defend and hold Declarant harmless from any loss,costs or damages’ arising from such Owner’s or such Association’s failure or, refusal to perform its respective obligations.- (1)Survival of Provisions.As contemplated by the California Civil Code Section 1670.5 and case law applying that statute,if any provision or part of these ADR Provisions dis for any reason held to be invalid,unconscionable,contrary to any public policy,law,statute and/or ordinance,or unenforceable for any other reason,then such unenforceable provision(s)or part(s}shall be deemed severed,and the remainder of these ADR Provisions shall not be affected thereby and shall remain valid and fully.enforceable notwith- _54_ 50076 .U03 -11492 .FCM 031405 standing the severance and unenforceability of the severed portions.D ' DECLARANT,THE ASSOCIATION AND EACH OWNER SHALL USE THE PROCEDURES ESTABLISHED IN THIS SECTION TO RESOLVE ALL DISPUTES ANDA SHALL BE DEEMED TO WAIVE THEIR RIGHTS TO RESOLVE DISPUTES IN ANY OTHER MANNER.PURSUANT TO THIS SECTION,DECLARANT,THE ASSOCIATION (BY ACCEPTANCE OF A DEED TO THE COMMON AREA),AND EACH OWNER (BY ACCEPTANCE OF A DEED TO A LOT)ACKNOWLEDGE,UNDERSTAND,AND AGREE THAT THEY SHALL HAVE NO RIGHT TO HAVE ANY DISPUTE TRIED BEFORE A JURY. ,THIS SECTION MAY NOT BE AMENDED WITHOUT DECLARANT'S PRIORA WRITTEN CONSENT,WHICH CONSENT MAY BE WITHHELD IN DECLARANT'S SOLE AND ABSOLUTE DISCRETION. -Section 6.Notification by Association of Defects. The Board agrees that in the event of any alleged defect in any improved Common Area for which the Association believes the Declare ant may be responsible,the Board will provide Declarant with written notice of such defect in accordance with Civil Code Section 1375,as the same may be amended,or,if provided by Declarant,its. nonadversarial dispute resolution procedure.Declarant shall have a reasonable opportunity to inspect such alleged defect,and if Declarant agrees with the Board (or otherwise elects to perform the,_ work)to repair,replace or otherwise cure any defect in workman- ship and/or material.The Association acknowledges and agrees that Declarant,(or its authorized agents),shall be entitled at-its sole discretion to determine the material and methods to be used in affecting such repair,replacement or cure.A Section 7. Awards Rendered in Construction Defects Disputes.Any recovery by the Association or any Owner for any damage,to or defect in,the Common Area shall be utilized solely for the purpose of correcting such damage or defect. Section 8.Special Meeting of the Association for Construction Defect Disputes,In the event the Board decides to commence binding arbitration proceedings under the Home Buyer's iwarranty or decides to commence any other legal proceedings against_ any of the Declarant parties relating to construction defect Disputes,the Secretary shall call a special meeting of the Associ- ation.In addition to the information required by Section 1375 to be specified in the notice of such meeting,the notice shall also specify the following:(a)the estimated costs to repair the defects;(b)how the necessary repairs will be funded;(c)the name of the attorney whom the Association is contemplating retaining and an estimate of the attorney's fees,consultant’s fees and any other costs to be incurred to prosecute such proceedings;(d)how such ' fees and costs will be funded;(e)each Member’s duty to disclose _E55.. 50076f0O3-ll492.FCM 031406 _._.__ _.._ ___ _,__ to prospective purchasers the alleged defects;and (f)the poten- tial impact the proceedings may have on the marketability and availability of financing for Lots in the Project.Such notice shall be sent to all Members of the Association.The decision of the Board to commence any other legal proceedings against any of the Declarant Parties relating to a construction defect Dispute must be approved by not less than fifty—one percent (51%)of the voting power of the Association residing in Members other than the *Declarant. Section 9.Repair of willful Damage to Common Area. Notwithstanding the Association’s duty to maintain the Common Area, in the event that the maintenance,repair or replacement of any element of such Areas becomes necessary due to the willful or negligent acts or omissions of any Owner,his family,guests or invitees,after prior Notice and Hearing,the Board shall assess the cost of such maintenance,repair and/or replacement as a ,Compliance Assessment against the Lot owned by such Owner. Section 10.Delegations of Duties.In the event that the Association shall delegate any or all of its duties,powers or functions to any person,corporation or firm to act as manager, neither the Association nor the members of its Board shall bet liable for any omission or improper exercise by the manager of any such duty,power or function so delegated.B . Section 11.Right of Entry for Emergency.The Board, lany person authorized by the Board,Declarant (so long as it owns an interest in the Project),or any Owner may enter any Lot in the event of any emergency involving illness or potential danger to life or property.Such entry shall be made with as little inconve~, nience to the Owner as is practicable,and in the event that any damage shall be proximately caused by or result from said entry, the Association and/or Owner shall repair the same at its expense. A Section 12.Right of Entry for Repairs.Except as otherwise provided herein,the Board,or any person authorized byl the Board,shall have the right to enter,upon reasonable notice, any Lot to effect necessary repairs which the Owner has failed to perform or which are necessary in connection with the repairs to the Common Area or an adjoining Lot.Such entry shall be made with as little inconvenience to the Owner as is practicable,and in the event that any damage shall be proximately caused by or result from said entry,the Association shall repair the same at its expense. Section 13.Limitations on Board Action.The Board shall be prohibited from taking any of the following actions, _except with the vote or written assent of a majority of the voting power of the Association and a majority of the votes residing in Members,other than the Declarant:-A _E36.. SG076.003-l1492.FCM 031406 —-._____a-—.- 500'?6.003 -11492 .l'-‘CM 031406 (a)Entering into a contract with a third person, wherein the third person will furnish goods or services for) the Common Area or the Association for a term longer than one (1)year,with the following exceptions: (1)A management contract,the terms of which -have been approved by the_VA/FHA and are consistent with provisions herein; (2)A contract with a public utility company if the rates charged for the materials or services are regulated by the Public Utilities Commission;provided, however,that the term of the contract shall not exceed the shortest term for which the supplier will contract at the regulated rate; r (3)Prepaid casualty and/or liability insur- ance policies of not to exceed three (3)years duration, provided that the policy permits for shortérate cancella~ tion by the insured;1 (4)Agreements for cable television services and equipment or satellite dish equipment and services of not to exceed five (5)years duration,provided that the lessor under the agreement is not an entity in which Declarant has a direct or indirect interest of ten per- cent (10%)or more;and 3 ' (5)Agreements for sale or lease of burglar alarm and fire alarm equipment,installation and services of not to exceed five (5)years duration provided that .the supplier or suppliers are not entities in which the Declarant has a direct or indirect ownership interest of ten percent (10%)or more. (b)Incurring aggregate expenditures for capital improvements to the Common Area in any fiscal year in excess of five percent (5%)of the budgeted gross expenses of the (Association for that fiscal year;‘ (c)Selling during any fiscal year property of the Association having an aggregate fair market value greater than (five percent (5%)of the budgeted gross expenses of the Association for that fiscal year; (d)Paying compensation to Directors or to officers of_the Association for services performed in the conduct of the Association's business;provided,however,that the Board may cause a Director or officer to be reimbursed for expenses incurred in carrying on the business of the Association; -57- .(e)Filling a vacancy on the Board created by the removal of a Director; (f)Except as otherwise allowed under Section 1375 of the California Civil Code,as same may be amended from time to time,incurring litigation expenses,including without limitation attorneys’fees,where the Association initiates legal proceedings or is joined as a plaintiff in legal pro- ceedings.Such approval shall not be necessary if the legal proceedings are initiated to (i)enforce the use restrictions contained herein,(ii)enforce the architectural control provisions contained herein;or (iii)collect any unpaid .assessments levied pursuant to this Declaration;or (g)Amending or limiting the Association's duties and obligations (and benefits)with respect to the Home- Buyer’s Warranty, Section 14.Licenses,Easements and Rights-of-Way.The Board,for and on behalf of the Association,is authorized and empowered to grant such licenses,easements and rights—of-way for sewer lines,water lines,underground conduits,storm drains and ‘other public utility purposes over those portions of the Common- Area upon which no building or other structure has been erected as may be necessary and appropriate for the orderly maintenance, preservation and enjoyment of the Common Area or for the preser- vation of the health,safety,convenience and welfare of the Own~ ,ers.Such licenses,easements and rights—of-way may be granted at‘ any time prior to twenty-one (21)years after the death of the individuals who have signed this Declaration and their issue who are in being as of the date hereof,and the right to grant such licenses,easements and rights—of-way is hereby expressly reserved; In addition,the Board,for and on behalf of the.Association,may Agrant exclusive easements to Owners for use and enjoyment over portions of the Common.Area,as the Board determines is reasonable. Section 15.New Improvements.Except as otherwise pro- vided in this Declaration,and subject to applicable City approval, and the Article herein entitled “Architectural Review -Approval," the Association may construct new Improvements or additions to the Common Area or demolish existing Improvements,provided that in the case of any Improvement,addition or demolition involving a total expenditure in excess of five percent (5%)of the budgeted gross expenses of the Association for that fiscal year,the written consent or vote of the Owners in the Project as to the.maximum W total cost therefor shall first be obtained in accordance with the appropriate provisions herein,and provided that no Lot shall be altered or damaged by any such demolition or construction without the consent of the Owner thereof.The Board shall levy a Special Assessment on all Owners in the'Project for the cost of such work. S00'76.0D3-11492.FCM O31-106 '-58‘ Section 16.Association Rules and Regulations.The Board shall also have the power to adopt,amend and repeal Rules and Regulations,as it deems reasonable,which may include the establishment of a system of fines and penalties enforceable as Compliance Assessments.The Rules and Regulations shall govern such matters in.furtherance of the purposes of the Association,includ— ing,without limitation,the use of the Common Area,signs,parkingi restrictions and enforcement,trash collection,minimum standards for maintenance of Lots consistent with such standards as may be set forth in this Declaration or adopted by the Architectural Review Committee,election procedures in compliance with California Civil Code Section 1363.03,and any other matter which is within the jurisdiction of the Association;provided,however,that thei Rules and Regulations may not discriminate among Owners and shall ‘not be inconsistent with this Declaration,the Articles or By—Laws. A copy of the Rules and Regulations as they may,from time to time, be adopted,amended or repealed,or a notice setting forth the adoption,amendment or repeal of specific portions of the Rules and ‘ Regulations,shall be delivered to each Owner.The Rules and‘ Regulations shall have the same force and effect as if they were set forth in and were-part of this Declaration,and shall be , binding on the Owners and their successors in interest,whether or not actually received thereby.The Rules and Regulations,as ’ adopted,amended or repealed,shall be available at the principal office of the Association to each Owner upon request.In the event of any conflict between any such Rules and Regulations and any other provisions of this Declaration,or the Articles or By-Laws, the provisions of the Rules and Regulations shall be deemed to be Superseded.B Section 17.Nonliability and Indemnification. (a)General Limitation.‘Except as specifically provided in this Declaration,or as required by law,no right, power or responsibility conferred on the Board or the Archi~ tectural Review Committee by this Declaration,the Articles or the By~Laws,shall be construed as a duty or obligation charged upon the Board,the Architectural Review Committee, any member of the Board or the Architectural Review Committee, or any other officer,employee or agent of the Association. No such person shall be liable to any party (other than the Association or a party claiming in the name of the Associa- tion)for injuries or damage resulting from such person's acts or omissions within what such person reasonably believed to beg the scope of his Association duties (“Official Acts"),except~ to the extent that such injuries or damage result from such person's willful or malicious misconduct.No such person _shall be liable to the Association (or to any party claiming . in the name of the Association)for injuries or damage result- ing from such person's Official Acts,except to the extent -59-—SO076.003—11492.FCM 031406 that such injuries or damage result from such person's negli- gence or willful or malicious misconduct;A (b)Personal Liability Limitation.No person who suffers injury,including,but not limited to,bodily injury (including,without limitation,emotional distress or wrongful, death)or property damage or loss as a result of the tortious act or omission of a volunteer Board member or volunteer Association officer shall recover damages from such Board member or officer if all the following conditions are satise fied: (1)At the time the act or omission occurred, the Board member or officer resided in the Project as either a tenant or an Owner of two (2)or fewer Lots;( (2)The act or omission was performed withint the scope of the Board member's or officer’s Association duties;A (3)(The act or omission was performed in good faith;a (4)The act or omission was not willful, wanton or grossly negligent;and (5)The Association maintained and had in ieffect at the time the act or omission occurred,and at the time a claim was made,one (1)or more policies of insurance which included coverage for general liability for the Association and individual liability of officers and Directors of the Association for negligent acts or omissions in such capacity,and both types of coverage were in the amount of at least One Million Dollars ($1,000,000.00).L = ,(c)Indemnification.The Association shall pay all expenses incurred by,and satisfy any judgment or fine levied against,any person as a result of any action or threatened action against such person to impose liability on such person for his Official Acts,provided that:,.- (1)The Board determines that such person acted in good faith and in the manner such person reason~ ably believed to be in the best interests of the Associa- tion;and ' (2)In the case of an action or threatened action by or in the name of the Association,the Board determines that such person acted with such care,includ- ~50-50076.003-ll-492.FCM 031406 500'?6.U03-11492 .FCM D31-106 ing reasonable inquiry,as an ordinary prudent person in a like position would use under similar circumstances. _,Any determination of the Board required under this Section must be approved by a majority vote of a quorum consisting of Directors who are not parties to the action or threatened action giving rise to the indemnification.If the Board fails or refuses to make‘any such determination,such determination may be made by the vote or written consent of a majority of a quorum of the Members of the Association, provided that the person to be indemnified shall not be entitled to vote.The entitlement to indemnification hereun- der shall inure to the benefit of the estate,executor, ;administrator,heirs or devisees of any person entitled to such indemnification.‘ ARTICLE VI ASSESSMENTS Section 1.Creation of the Lien and Personal Obliga- tion 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,is deemed to_covenant and agree to pay to the Association: (a)Regular Assessments;(b)Special Assessments for capital im- provements and such other purposes set forth herein;(c)Compliance Assessments,including,but not limited to,costs incurred by the Association in the repair of damage to the Common Area for which such Owner was responsible and costs incurred by the Association-in bringing such Owner and his Lot into compliance with this Declara-" tion;(d)Special Benefit Assessments;and (e)such other assess- ments as the Association may periodically.establish.Except as ,otherwise'provided by law,the Regular,Special and Special Benefit Assessments,together with interest,costs and reasonable attor- neys’fees for the collection thereof,shall be a charge on the land and shall be a continuing lien upon the Lot against which each such Assessment is made.Each Regular Assessment,Special Assess- S ment and Special Benefit.Assessment,together with interest,costs and reasonable attorneys’fees for the collection thereof,shall also be the personal obligation of the Owner of such property at the time when the Assessment fell.due.Each Compliance Assessment levied against an Owner,together with interest,costs and reason- able attorneys’fees for the collection thereof,shall be the personal obligation of the Owner of the property at the time of the Assessment.The personal obligation for delinquent Assessments W shall not pass to an Owner's successors in title unless expressly assumed by them.. _51_ Section 2.Purpose of Regular Assessments:Levy and Collection.The Regular Assessments levied by the Association shall be used exclusively to promote the health,safety and welfare of all Owners in the Project,and to maintain and improve the Common‘ Area.The Association,by and through the Board,shall levy and collect Assessments from the Owner of each Lot in the Project in an amount sufficient to cover all of the Common Expenses incurred by the Association in connection with the performance and execution of its powers and duties set forth in this Declaration,the By—Laws and the Articles.Regular Assessments may be collected on a monthly installment basis. Section 3.Regular Assessments ~Basis.Regular Assessments payable to the Association shall be assessed equally against all Owners of Lots within the Project.Each Owner's proportionate share of the Common Expenses of the Association for any fiscal year shall be a fraction,the numerator of which shall be the number of Lots owned by such Owner,and the denominator of which shall be the total number of Lots in the Project which are subject to assessment.During the period the Project is being built out,Declarant may annex one or more Phases into the Project in .accordance with the provisions of this Declaration.Until the first day of the fiscal year immediately following the close of escrow for the sale of the first Lot in the Project to an Owner, the maximum Regular Assessment shall be as set forth in the budget reviewed and approved by the DRE.Notwithstanding the commencement for payment of Regular Assessments,or any other provisions of this Declaration,Declarant and any other Owner of a Lot which does not include a structural Improvement for human occupancy shall be exempt from the payment of that portion of any Assessment which is for the purpose of defraying operating expenses and reserves directly attributable to the existence and/or use of such struc—_ tural Improvements.This exemption shall include,but shall npt necessarily be limited to,that portion of any Assessment attribut~ able to roof replacement,exterior maintenance,exterior walkway, and carport lighting,refuse disposal,cable television and domes- tic water supplied to Residences.This exemption shall be in effect only until the earliest to occur_of:(a)the recordation of a notice of completion for the structural Improvements;(b)the occupation or use of the Residence;or (c)the completion of all elements of the Lot which the Association is obligated to maintain, if any.Declarant and any Owner shall also be exempted from the payment of that portion of any Assessment which is for the purpose‘ of defraying expenses and reserves directly attributable to the existence and use of any Common Area facilities that are not complete at the time Assessments commence.This latter exemption. shall only be in effect as to a particular Common Area facility until the earlier of:(a)the recordation of a notice of completion for such Common Area facility;or (b)the placement into use of the iparticular Common Area facility.Subject to the limitations of _52_. score OD3—11492.FCM 031405 California Civil Code Section 1366,as same may be amended,from time to time,from and after the first day of the fiscal year imme~ diately following the conveyance of the first Lot to an Owner,the maximum Regular Assessment may be increased subject to the follow- ing limitations:( (a)Increases in Regular.Assessments for any fiscal year which are less than or equal to twenty percent (20%) "above the maximum Regular Assessment for the immediately preceding fiscal year may be approved by DRE and/or the Board, provided that the Board shall:(1)comply with the provisions ‘set forth in Section l365{a)of the California Civil Code with respect to the distribution of the pro forma operating budget of the Association for the forthcoming fiscal year;or (2) obtain the approval of Owners,constituting a quorum and casting a majority of affirmative votes at a meeting or an election of the Association conducted in accordance with California Corporations Code Sections 7510,eg §gg.,and Sections 7613,e;seg.For purposes of this entire Section 3, a quorum means Owners representing more than fifty percent (50%)_of the of the total voting power of the Association; (b)Increases in Regular Assessments for any fiscall year which are greater than twenty percent (20%)above Regular ,Assessments for the immediately preceding fiscal year may be approved by the Board only after the Board obtains the approve al of Owners,constituting a quorum and casting a majority of affirmative votes at a meeting or election of the Association, conducted in accordance with Sections 7510,g;§§g.,and " Section 7613 of the Corporations Code;and i (c)The Assessment increases limitation set forth in Subsection (b)above does not apply to increases in Assess- ‘ments related to emergency situations,which shall be deemed to include the following:i ' (1)(Extraordinary expenses required by-a order by a court of competent jurisdiction;- (2)Extraordinary expenses for the maintenance. or repair of Common Area that is necessary to remedy any dangerous condition in the Project that represents a- threat of damage or injury to any person or property;and (3)Extraordinary expenses necessary to repair or maintain the Common Area that could not have.been reasonably anticipated by the Board at the time the most recent Association budget was prepared.Notwithstanding the foregoing,in the event that the Board increases the Regular Assessment above twenty percent (20%)pursuant to -63~—50U'36.003-114 92 .F'CM 031406 this Subparagraph (3),the Board shall distribute written notice concerning such increase to all Owners and a copy of a resolution_adopted by the Board setting forth:(i) "the necessity of the extraordinary expenses;and (ii)the justification why said expenses were not reasonably foreseeable at the time the most recent budget was pre- pared.For the purpose of calculating whether an in—y crease to Regular Assessments exceeds twenty percent (20%),the term "Regular Assessments"shall be deemed to include the amount assessed against each Lot by the A Association as a Regular Assessment,plus any amount paid by the Declarant as a subsidy or pursuant to any subsidy or maintenance agreements,to the extent such subsidy payments offset an amount which would otherwise be paid by Owners as Regular Assessments.~ The Board_may fix the Regular Assessment at an amount not in_excess of the maximum Regular Assessment.So long as Declarant is offering Lots for sale pursuant to a Final Subdivision Public Report,the Regular Assessment may not be decreased by ten percent (10%)or more without.the express prior written consent of the ‘Declarant and'the_DRE.Notwithstanding-the foregoing,following the annexation of a subsequent Phase of the Project,pursuant to the provisions set forth in this Declaration,the maximum Regular Assessment may be automatically increased (or decreased)for all Lots in the Project on the-first day of the month following the first close of an escrow for the sale of,a Lot in said Phase without any approval of the Members of the Association to the amount recommended by the DRE in connection with its review and processing of the Association budget for such Phase.The Associa- tion may,upon ratification by a majority of the Board,enter into an agreement with Declarant,its successors or assigns,to reduce or abate Assessments,upon such terms and conditions as may be agreed to by the parties. Section 4.gpecial Assessments for Capital Improve- ments.In addition to the Regular Assessments authorized above,the Board may not,subject to the limitations of California Civil Code. Section 1366,without the vote or written approval of Members constituting a quorum (which shall mean more than fifty percent [50%]of Owners of the Association)casting a majority of affirma- tive votes at,a meeting or election of the Association,conducted in accordance with Sections 7510,Q;§§g.,and 7613 of the Corpora— tions Code,levy Special Assessments to defray the costs of any action or undertaking on behalf of the Association which in the, aggregate exceed five percent (5%)of the budgeted gross expenses of the Association for.that fiscal year.The five percent (5%) limitation shall not apply to increases in Special Assessments related to an emergency situation which shall be deemed to include the following: -54- SD076.003—l1492.FCM 031405 (a)Extraordinary expenses required by an order by a court of competent jurisdiction; .(b)Extraordinary expenses for the maintenance or repair of Common Area that is necessary to remedy any danger- ous condition in the Project that represents a threat of ' damage or injury to any person or property;and (c)Extraordinary expenses necessary to repair ore maintain the Common Area that could not have been reasonably anticipated by the Board at the time the most recent Associ- ation budget was prepared.Notwithstanding the foregoing,in the event the Board levies any Special Assessment that exceeds the five percent (5%)limitation pursuant to this Section,the Board shall distribute written notice concerning said Special .Assessment to all Owners and a copy of a resolution adopted by the Board setting forthi (1)the necessity of said Special Assessment;and (2)the justification why said Special Assess-- ment was not reasonably foreseeable at the.time the most recent budget was prepared. Every Special Assessment shall be levied upon the same -basis as that prescribed for the levying of Regular Assessments. Section 5.i Compliance Assessments.The Association may also impose a special assessment against any Owner to reimburse the Association for costs incurred in bringing an Owner and the Ownerfs Lot into compliance with the provisions of the Declaration, the Bylaws and Association rules and regulations,or as a penalty imposed as a disciplinary measure for failure of an Owner or, ‘occupants of the Owner's Lot to comply with such provisions (here~e inafter a "Compliance Assessment").Such Compliance Assessment may be imposed upon the vote of the Board after notice and an opportu- nity for a hearing which satisfy the requirements of Section 7341 yof the California Corporations Code,as set forth in the Bylaws, and the Board shall meet in executive session if requested by the Owner being disciplined and the Owner shall be entitled to attend the executive session.Except to the extent such Compliance Assessment is to reimburse the.Association for the cost of collect- ing assessments,the Compliance Assessment shall not constitute a lien on the Owner's Lot and shall be assessed only against the"_ Owner who is or was in non—compliance.At such time as the sale of Lots in the Project is not governed by the DRE,the Association shall have lien rights with respect to charges imposed against an Owner which are reasonable late payment fees for delinquent assessw ments,interest and other charges to reimburse the_Association for costs reasonably incurred (including attorney’s fees)in its efforts to collect delinquent assessments or imposed for costs incurred by the Association in the repair of damage to Common Area -55_5oo75.oo3-1149g.FcM 031406 and facilities for which the member or the members generally or tenants were responsible.'‘ isection 6;Special Benefit Assessments.Special Benefit Assessments shall mean and refer to a charge levied by the Association against an Owner and his respective Lot to cover the-, expenses incurred by the Association in the operation,maintenance, repair,and/or funding of reserves as to a portion of the Project. designated herein or in a Notice of Annexation as a "Special Benefit Area"or which is identified or referred to as an area or ifacility benefitting primarily the Owners within such an Area. These expenses shall be chargeable only to Owners in a Special Benefit Area,and may include,without limitation,the following: (a)Maintenance,management,operation,repair and replacement of particular Improvements within the Special Benefit Area;= I (b)Utilities or services for the benefit of Owners within the Special Benefit Area; (c)Reasonable reserves,as deemed appropriate by the Board,for repair and replacement of any Improvements maintained by the Association within a Special Benefit Area; 'and (d)Unpaid Special Benefit Assessments. The Association shall distribute to Owners within any ‘ Special Benefit Area a pro forma operating statement and budget for the upcoming fiscal year which shall estimate the expenses attrib~ utable to the Special Benefit Area,-and shall set forth the amount and payment schedule of the Special Benefit Assessments.Increases in Special Benefit.Area Assessments for any fiscal year which are A less than or_equal to twenty percent (20%)above the maximum Special Benefit Area Assessment for the immediately preceding fiscal year may be approved by the Board,provided that_the Board shall obtain the approval of Members affected by such Assessment, constituting a quorum,casting a majority of affirmative votes. For purposes of this Section,a quorum means more than fifty * percent (50%)of the Members of the Association affected by the Special Benefit Area Assessment.The Assessment increase limita—r tion set forth hereinabove does not apply to increases in Special Benefit Area Assessments related to emergency situations that could not have been reasonably anticipated by the Board at the time the‘ most recent Association budget was-prepared which determined the amount of the Special Benefit Area Assessments.. Section 7.Date of Commencement of Regular Assess—_ ments:Due Dates.Subject to the terms of any maintenance and/or -66-H50076.UO3—i14S2.FCM 031406 subsidy agreement entered into by the Association and Declarant, and except as provided in the Section below entitled "Model Homes," the Regular Assessments provided for herein shall commence as to all Lots in each Phase on the first day of the month following the first close of escrow for the sale of a Lot in such Phase.Except as otherwise provided in this Article,the first Regular Assess- ments shall be adjusted according to the number of months remaining in the fiscal year as set forth in the By-Laws.The Board shall fix. the amount of the Regular Assessment against each Lot at least thirty (30)days in advance of each Regular Assessment period. written notice of the Regular Assessment shall be sent to every Owner subject thereto at least thirty (30)days in advance of each. Assessment period.The due dates shall be established by the Board. Notwithstanding any other provisions of this Declaration,until the earlier to occur of:(a)the recordation of a Notice of Completion of an Improvement to the Common Area;or (b)the placement into use of the Common Area,each Owner (including Declarant)may be de- clared by the Board to be exempt from paying that portion of the. .Regular Assessment which is directly attributable to expenses and reserves to be incurred by the Association in the maintenance, operation and repair of such Common Area. Section 8.Model Homes.Conveyance of a Lot which is being used by Declarant for model home,sales office,design center,construction office or similar purposes (any of which uses are referred to in this Section as "Model Home")shall not commence the regular assessments against such Lots or other Lots within the Phase until the earlier to occur of:c- (a)discontinuance of use of such Lot as a Model Home; or -- (b)conveyance of any non-Model Home Lots in the Phase. -During the period of time commencing on the first day of the month after conveyance of a Lot being used by Declarant as a Model Home and ending on the date Regular Assessments commence against such Lot,Declarant shall be solely responsible to maintain all portions of the Phase in which a Lot is being used as Model Home.The Board shall have the right to inspect the areas being maintained by Declarant pursuant to this Section to determine that such maintenance meets reasonable standards.- Section 9.Collection of Assessments.Except as oth- erwise provided above or in any subsequent Notice of Annexation, Regular and Special Assessments shall be levied at a uniform rate for all Lots and may be collected on a monthly basis.If any installment of a Regular Assessment is less than the amount as- sessed and the payment does not specify the Association funds or ‘fund into which it should be deposited,the receipt by the Associa- _.6'7_ S0076.003—11492.FCM 031406 tion from that Member shall be credited in order of priority first to the operating fund,until that portion of the Regular Assessment has been satisfied,and second to the reserve fund.Compliance Assessments and Special Benefit Assessments shall be due thirty (30)days after such Assessment has been levied unless otherwise determined by the Board in a manner consistent with Civil Code Section 1366,as may be amended from time to time. Section 10.Notice of Increase in Assessments.Unless pursuant to a budget approved by the DRE,the Board shall provide to the Owners,by first class mail to the address on file with the Association,notice of any increase in Regular,Special,and/or Special Benefit Assessments not less than thirty (30)nor more than sixty (60)days prior to such increase becoming due... Section 11.Certification of Payment.The Association lshall,upon demand and for a reasonable charge,furnish a cer- tificate signed by an officer or agent of the Association setting forth whether the Assessments on a specified Lot have been paid._If a certificate states that Assessments have been paid,such certifw icate shall be conclusive evidence of such payment. Section 12.Delivery by Owner.Each Owner of a Lot shall,as soon as practicable prior to the transfer of title to the_ Lot or the execution of a real property sales contract,as defined in California Civil Code,Section 2985,or as may be amended,from time to time,give to the prospective purchaser a copy of this _ Declaration and copies of the By—Laws and Articles of the Associa- tion,and a true statement,in writing,from the Board as to the ‘amount of the Association's current Regular and Special Assessments and fees,as well as any delinquent Assessments and information relating to penalties,attorneys’fees and other charges authorized by this Declaration on the Lot as of the date the statement is issued,and any change in the Association’s current Assessments andi fees which have been approved by the Board but have not become due and payable as of the date disclosure is provided pursuant to this Section. Section 13.Delivery of Statement.Upon written re- quest,the Board shall,within ten (10)days of the mailing or delivery of such request,respectively,provide the Owner of a Lot with a copy of this Declaration,and copies of the By—Laws and Articles of the Association,together with the pro forma budget,an insurance policy summary,a true statement in writing as to the amount of any delinquent Assessments,penalties,attorneys’fees and other charges authorized by this Declaration on the Lot as of the date of the request,the most recent financial statement,the Association's current Regular and Special Assessments,and any' change in the Association's current Assessments and fees which have been approved by the Board but have not become due and payable as S0076.-{)03-11492.FCIVi 031406 ‘-68"- of the date disclosure is provided pursuant to this Section.The Board may impose a fee for providing such documents and statements, but in no event shall the fee exceed the amount authorized by law. [e.g.,Civil Code Section 1365.2(c)]. Section 14.Delivery by Declarant.Within ninety (90) days following the first close of escrow for the sale of a Lot in the Project,or as soon as reasonably obtainable,the Declarant shall provide the Association with copies of the (1)recorded tract map for the project;(2)Common Area grant deeds;(3)this Declaraw tion;(4)filed Articles of Incorporation;(5)the Association's 'iby-laws;(6)rules and regulations or architectural guidelines adopted by the Association,if any;(7)notice of completion . certificates for Common Area,if any;(8)completion bond(s)naming the Association as a beneficiary,if any;(9)warranties for Common Area equipment or fixtures,if any;-(10)insurance policies ob~ tained for the Association;and (11)membership register,to the extent it is available and required by law. _Section 15.Reserves.The Regular Assessments shall include reasonable amounts,as determined by the Board,collected as reserves for the future periodic maintenance,repair and re— placement of all or a portion of the Common Area or any such other purpose determined by the Board.All amounts collected as reserves shall be deposited by the Board in a separate bank account for the purposes for which they were collected,and are to be segregated from and not commingled with any other funds of the Association. The expenditure of such funds shall be limited to the repair and replacement of those elements of the Common Area which must be repaired or replaced according to a reserve study as permitted by Section 1365.5 of the California Civil Code,as same may be amended from time to time.'' Section 16.Offsets and Waiver Prohibited.No Owner may waive or otherwise avoid liability for the Assessments provided for herein for any reason whatsoever,including,but not limited to,non~use of the Common Area or abandonment of his Lot,nor shall any Owner be entitled to any offset against any Assessment provided for herein for any reason whatsoever,including,but not limited to,any expenditure made by such Owner for or on behalf of the Association.°' Section 17.Exempt Property.The following property subject to this Declaration shall be exempt from the Assessments herein:‘B xi(a)All property dedicated to and accepted by any public authority;, 500'?-5.003-1l492-Ff.‘M 031406 -69“ (b)All property owned by a charitable or nonprofit organization exempt from taxation by the laws of the State of California.However,no land or Improvements devoted to dwelling use shall be exempt from said Assessment;and (c)All Common Area owned in fee by the Associa~ tion.-'" ARTICLE VII EFFECT OF NONPAYMENT OF ASSESSMENTS:' REMEDIES OF THE ASSOCIATION Section 1.Effect of Nonpavment of Assessments:Reme- dies of the Association.Any-installment of a Regular,Special, Special Benefit,or.Compliance Assessment not paid within fifteen (15)days after it is due and payable,shall be deemed delinquent ,and the Owner shall be required to pay:(a)reasonable costs of collection,including reasonable attorneys’fees;(b)a reasonable late charge not exceeding ten percent (10%)of the delinquent Assessment or Ten Dollars ($10.00),whichever is greater,or as may,from time to time,be established by the Board in accordance. with California law;and (c)interest on all sums imposed under this Section at an annual percentage rate not to exceed twelve per+ cent (12%),commencing thirty (30)days after the Assessment was due.The Association need not accept any tender of a partial —payment of an assessment installment and all costs and attorneys’ fees attributable thereto,and any acceptance of any such tender does not waive the Association’s right to demand and receive full xpayments thereafter.Payments for Assessments shall first be applied to the principal owed for the Assessments,and only after such principal amount is paid in full shall such payments be applied to interest or collection expenses for such Assessments.If -requested by an Owner,the Association shall provide the Owner with_ 'a receipt of payment of Assessments,indicating the date of the Owner's payment of Assessments and the person who received such payment on behalf of the Association.The Association shall establish a mailing address for the overnight payment of Assess- ments.The Board,for and on behalf of the Association,may com- mence legal action against the Owner personally obligated to pay the same,or,in the case of a Regular,Special or Special Benefit Assessment,may foreclose the lien against his Lot.Such lien may also be foreclosed by a power of sale or other nonjudicial proce- dure provided for by the laws of the State of California.In ’~ furtherance thereof,each Owner hereby vests in the Association, its successors or assigns,the right and power to bring all actions at law or to pursue lien foreclosure against any Owner for purposes of collecting such Delinquent Assessments.To the extent permitted "by law,each Owner waives,with respect to the extent of any liens _7g_ 50076.003-11492 .FC'M 031406 created pursuant to this Article,the benefit of any homestead or exemption laws of California in effect at the time any Assessment, or installment thereof,becomes delinquent or any lien is imposed. Section 2.,Notice of Delinquent Assessments.No ac- tion shall be brought to foreclose a lien for delinquent Assess+ ments,or to proceed under the power of sale herein,unless the Association complies with all applicable provisions of law (e.g., California Civil Code Section l367.l(a),as the same may be amended from time to time,and provisions of California Civil Code Section, 2924,2924(b),and 2924(c),as may be amended from time to time). Section 3.Foreclosure Sale.Any foreclosure sale provided for above is to be conducted by the Board,its attorney or other persons authorized by the Board in accordance with the provisions of Sections 2924,2924a,2924b and 2924c of the Cali- fornia Civil Code,as same may be amended,from time to time, applicable to the exercise of powers of sale in Mortgages and deeds of trust,or in any other manner permitted by law.The Association, through duly authorized agents,shall have the power to bid on the Lot at a foreclosure sale,and-to acquire,hold,lease,mortgage and convey the same.Any Owner,by acceptance of a deed for his Lot,hereby expressly waives any objection to the enforcement and foreclosure of the lien in this manner.- Section 4.Curing of Default.Upon the timely curing of any default for which a Notice of Delinquent Assessments or lien was filed by the Association,the officers thereof are hereby authorized to file or record,as the_case may be,an appropriate release of such Notice upon payment by the defaulting Owner of a reasonable fee to be determined by the Association to cover the costs of preparing and filing or recording such release. .Section 5.Cumulative Remedies.The Association’s remedies for nonpayment of Assessments,including,but not limited to,an action to recover a money judgment,Assessment lien and right of foreclosure and sale,are cumulative and in addition to and not in substitution of any other rights and remedies which the iAssociation and its assigns may have hereunder or at law. Section 6.Mortqaqee Protection.Notwithstanding all other provisions hereof,no lien created hereunder,nor any breach of the terms and provisions of this Declaration,nor the enforce- ment of any term or provision hereof,shall defeat or render invalid the rights of any Mortgages under any recorded Mortgage or deed of trust upon a Lot made in good faith and for value;provid~ ed,that after such Mortgages or other person or entity obtains title to such Lot by judicial or nonjudicial foreclosure,such Lot shall remain subject to this Declaration and the payment of As- sessments which fall due subsequent to the date of taking title. _'7]_.... s0d75.0Q3-11492.FcM 031406 ARTICLE VIII USE RESTRICTIONS The Lots and Common Area shall be occupied and used only as set forth below. Section 1.Private Residential Dwelling.Subject to limitations set forth in the Entitlements From City,each Lot shall be used as a private residential dwelling and for no other purpose, except such temporary uses as shall be permitted by Declarant while the Project is being developed and Lots are being sold by Declar- iant;provided,however,that Declarant reserves the right,for a period of five (5)years from recordation of this Declaration,or until all Lots in Tract 32070 are sold (and escrows closed), whichever shall last occur,to carry on normal sales activity on the Project,including the operation of models and sales offices,- provided Declarant shall not unreasonably interfere with any otheri Owner’s use of the Common Area.No Owner shall use his or her Lot or Common Area in violation of any local,state,or federal law, and any such violation shall be remedied within thirty (30)days of written notice to.the Owner from the Association;The Association shall have the right,but not the obligation-to enforce such provision. Section 2.Common Area Use.Use of the Common Area shall be subject to the provisions of this Declaration,the Rulesl and Regulations and to any additional limitations imposed by the Association.A ,Section 3._Conduct Affecting Insurance.Nothing shall be done or kept in any Lot or in the Common Area which will in~ crease the rate of insurance on the Common Area without the ap- proval of the Association._No Owner shall permit anything to be done or kept_in his Lot or in the Common.Area which will result in the cancellation of insurance on the Common Area or which would be in violation of any law.If,by reason of the occupancy or use of said premises by the Owner,the rate of insurance_to the Common Area shall be increased,the Owner shall become personally liable for the additional insurance premiums., .,Section 4.Liability for Damage.Each Owner shall be liable to the Association,pursuant to the laws of the State of California,for any and all costs and expenses which may be in- curred by the Association to repair any damage to the Common Area which be sustained by reason of the negligence or willful miscon- duct of said Owner or of his family,tenants,lessees or contract purchasers,or their respective guests or invitees,whether minor or adult.After approval by a majority of the Board,any such costs -72- 50076.003-11492 .FCM 031406 and expenses shall be levied by the Board as a Compliance Assess- ment against such Owner's Lot. Section 5.Signs.Subject to the provisions of Cali—) fornia Civil Code,Sections 712,_713,1353.5 and 1353.6,and Government Code Section 434.5,as same may be amended from time to time,no sign of any kind shall be displayed to the public view on or from any Lot or the Common Area without the approval of the Association,except such signs as may be used by Declarant for a period of five (5)years from recordation of this Declaration or until all Lots in Tract 32070 are sold (and escrows closed), whichever is first to occur,in connection with the development of the Project and sale of Lots,and except one (1)"for sale,""for lease"or "for exchange"sign of reasonable size on any Lot.The - foregoing restrictions shall not apply to any sign of customary and reasonable dimensions displayed on the Owner’s Lot (or another Owner’s Lot with consent)which states that the Lot is for sale, lease or exchange,or advertising directions to the Lot by the Owner or his or her agent,and which is reasonably located in plain view of the public,so long as it is consistent with any standards promulgated by the Architectural Review Committee.All signs per- mitted under this Section shall conform with the City’s sign or- .dinance,if any,and with all applicable governmental regulations. Section 6.Maintenance of Animals.No animals of any kind shall be raised,bred or kept in any Lot or in the Common Area,except that common domesticated dogs,cats,birds or other household pets (other than small household pets such as fish),may be kept in each Lot in reasonable numbers;provided,however,that no animal shall be kept,bred or maintained for any commercial. purpose and shall not exceed the weight limitations,;§_agy,) established by the Board.As used in-this Declaration,"reasonable numbers"shall ordinarily mean two (2)total-pets (excluding small household pets such as fish)per Residence;however,the Board may determine that a "reasonable"number in any instance may be more or less than two (2).Each Owner shall be responsible for cleaning up" any excrement or other unclean or unsanitary condition caused by said animal in the Project.While walking or exercising an animal" in the Project,the owner thereof shall,at all times,comply with any applicable City ordinances_and have readily available means to cleanup any excrement or other unclean or unsanitary conditions’ caused by said animal.The Association,upon the approval of a majority of the Board,shall have the right to prohibit maintenance of any animal within the Project which constitutes a private nuisance to any other person.Every person bringing an animal upon or keeping an animal in the Project shall be liable pursuant to the laws of the State of California to each and all persons for any injury or damage to persons or property caused by such animal.All -animals maintained in a Lot must be kept either within an enclo~ _'7'3_ S0O76.0D3-11492.FCM 031406 sure,enclosed yard or deck,or on a leash being held byia person capable of controlling the animal.A ,Section 7.Quiet Enjoyment.No Owner shall permit or suffer anything to be done or kept upon such Owner’s Lot which will obstruct or interfere with the rights of quiet enjoyment of the other occupants,or annoy them by unreasonable noises or otherwise, .nor will any Owner commit or permit_any nuisance on the premises or commit or suffer any immoral or illegal act to be committed there- on.Notwithstanding the foregoing,for as long as Declarant owns an interest in the Project,the Declarant's efforts in selling the Lots may interfere with the Owners’quiet'enjoyment of the Lots; however,each Owner acknowledges this and waives any claims against the Declarant for nuisance due to any activity related to con- structing,selling or marketing the Lots.Each Owner shall comply with all of the requirements of the Board of Health and of all other governmental authorities with respect to said premises,and shall remove all rubbish,trash and garbage from his Lot.All clotheslines,refuse containers,woodpiles,storage boxes,tools and equipment shall be prohibited from any Lot unless obscured from view by a fence or appropriate screen approved by the Architectural Review Committee provided for hereinbelow.. Section 8._Grading/Irrigation.No Owner shall permit any act to be performed on such Owner's Lot which would result in erosion of the Common Area or Lots in the Project,including,but not limited to,changing the grading of his Lot or over—irrigating same.If the Owner permits any such act resulting in erosion of or other damage to the Common Area or Lots in the Project,said Owner v will be personally liable to the Association or the respective Lot Owner for such damage..If the Common Area is damaged,a Special Assessment shall be levied against such Owner's Lot to recover all costs and expenses incurred to repair or reconstruct that portion of the Common Area damaged by such Lot Owner..' Section 9;rstructural Changes.There shall be no exterior structural alteration,construction or removal of any Residence,fence,wall,or other structure whatsoever in the Project without the prior written approval of the Board or its designated Architectural Review Committee (including any necessary City approval),as required herein,except such works of construc- tion by Declarant during the development of the Project.Nothing in this Declaration or the Rules and Regulations shall require the installation of an Improvement in any manner which violates Civili Code Section 1353.7 (relating to the installation and repair of a roof). Section 10.Improvements.There shall be no construc- tion,alteration or removal of any Improvement in the Project _(other than those repairs or rebuilding permitted under the Article -74-sop7s.oo3-11492.FcM'031406 entitled "Damage or Destruction to the Common Area")without the approval of the Architectural Review Committee,as set forth hereinbelow.No Improvement shall be constructed upon any portion of any Common Area,other than such Improvements as shall be con- structed:(a)by the Declarant (or a person or entity to whom 'Declarant assigns its rights as developer),or (b)by the Associ- ation as provided herein. For example,no fence,wall or railing may be erected,altered or maintained on any Lot,except with the Architectural Review Committee’s prior approval.No projections of any type may be placed or permitted to remain above the roof of any Residence within the Project,except one (1)or more chimneys and vents originally installed,if at all,by Declarant. No basketball backboard or other sports apparatus may be construct- ed or maintained in the Project without the Architectural Review Committee's prior written approval.No patio cover,wiring or air conditioning fixture,water softeners or other devices may be installed on the exterior of the Residence or on a Lot or be allowed to protrude through the walls or roof of the Residence _(with the exception of those items installed during the original construction of the Residence by Declarant)unless the Architec~ tural Review Committee’s prior written approval is obtained. All air conditioning equipment,heating equipment,soft water tanks,gas meters,and electric meters installed within the Project shall be appropriately screened from public view in a manner acceptable to the City (or as otherwise governed by applicable City municipal codes)and approved by the Architectural Review Commit- tee. Section 11.Post Tension Slabs.Each Owner hereby acknowledges that the concrete slab'for Owner's Residence may be reinforced with a grid of steel cables which would be installed in the concrete and then tightened to create very high tension.This type of slab is commonly known asia "Post Tension Slab."Each Owner further acknowledges cutting into a Post Tension Slab for anyi reason (e.g.,to install a floor safe,to remodel plumbing,etc.) is very hazardous and may result in serious damage to the Residence and/or personal injury.By accepting a grant deed to the Lot,and subject to confirmation by the Owner that his/her Residence was constructed with a post tension slab,each such Owner hereby specifically covenants and agrees that:j ., i (a)He/she shall not cut into-or otherwise tamper with the Post Tension Slab; -75- SCIO'7S.D03-1.l492'.FCM 0335406 (b)He/she shall not knowingly permit any other person to cut into or tamper with the Post Tension Slab so, long as Owner owns any interest in the Lot; (c)He/she shall disclose the existence of the Post Tension Slab to any tenant,lessee,or grantee of the Resi- dence;and - (d)He/she shall_indemnify and hold Declarant,and its respective officers,employees,contractors and agents, free and harmless from and against any and all claims,damag- es,losses,or other liability (including attorneys’fees) arising from any breach of this Section. Section 12.Windows.No window in any Residence shall be covered in whole or in part,inside or outside,with aluminum foil,newspaper,paint,tint or any other material reasonably deemed inappropriate for such use by the Architectural Review Committee (e.g.,harmonious with the exterior color palette of the Residence);provided,however,an Owner may use plain white sheets to cover windows for a period not to exceed three (3)months after the close of escrow pending the installation of drapes,curtains, shutters or other appropriate interior window coverings.Subject to review and approval by the Architectural Review Committee,an extension of three (3)months may be provided.In the event an Owner has installed appropriate window coverings for all windows facing the street,the Architectural Review Committee shall auto~ .matically grant such Owner a three (3)month extension_to obtain necessary window coverings for the back windows of his Residence- Section 13.Commercial Activity.No business,commer— rcial,manufacturing,mercantile,storage,vending or industrial operations of any kind shall be conducted in or upon any Lot,or the Common Area,except such temporary uses as shall be permitted by Declarant.Notwithstanding the foregoing,and unless otherwise allowed by law,this Section shall not preclude an Owner from maintaining a home—office and conducting business activities therefrom on the following conditions:(a)there is no external evidence of such-activity;(b)such activities are conducted in iconformance with all applicable government ordinances (e.g.,all necessary permits and/or licenses are obtained);(c)the patrons or clientele of such activities_do not visit the Residence or park automobiles or other vehicles within the Project;(d)the existence or operation of such activities is not apparent or detectable by sight,sound or smell from outside of the boundaries of the Resi- dence or Lot;(e)no such activity increases the liability or casualty insurance obligation or premium of the Association;and (f)such activities are consistent with the residential character of the Project and conform with the provisions of this Declaration. Until such time as Declarant no longer has an ownership interest in -75-50076.Ufi 3—11492.FCM 031466 I R , - _..;-4 —..L._u.'_.._'..|.'_.....a..|.._ - Tract 32070,no Owner or the Association shall use a Residence as an office for the rental,resale or leasing of Lots without the prior written consent of Declarant.., Section 14.Parking.All vehicles in the Project shall be parked in accordance with the following:i (a)Private Streets.All streets within the’ Project are private and subject to the Protective Covenants of this Declaration,as well as all applicable laws,ordinances and regulations of all governmental agencies having'jurisdic-. tion over the Project.Parking along the private streets in the Project is prohibited,except in designated parking spaces.Any unassigned open parking spaces,if any,shall be available on_a first+come,first—served basis to all guests and visitors.Notwithstanding the foregoing,no vehicle may. be temporarily parked in any unassigned parking space for more than the applicable continuous hour limitation approved by the Board; (b)Vehicles..No Owner of a Lot in the Project shall park,store,or keep any vehicle except wholly within or her Lot any large commercial type vehicle,including,but not limited to,any vehicle with three (3)or more axles_or any vehicle which exceeds 3/4 tons in weight;No Owner shall park any recreational vehicles in any area of his Lot or the Project."Recreational vehicles"shall include,without limitation,trailers,boats,campers,trailer coaches,buses, house cars,camp cars,motorhomes (if the size is larger than seven feet [7’]in height and/or greater than one hundred twenty—four inches [l24"]in-wheel_base length),or any other similar type of equipment or vehicle.v (c)Repairs.No Owner shall conduct major repairs to any motor vehicle of any kind whatsoever in his garage or upon the Common Area,except for emergency repairs thereto and then only to the extent necessary to enable the vehicle to be moved to a proper repair facility.No Owner shall park or store an inoperative vehicle on his or her Lot,other than in the garage,for more than forty-eight (48)hours. .(d)Storage of Goods in Garages.Each Owner shall ikeep his garage readily available for parking his respective vehicle therein and shall not store any goods or materials therein,nor use any portion of the garage for a workshop or parking the number of four (4)wheel vehicles therein for which said garage was originally designed and constructed-by Declarant (e.g.,two). -774SO076.0G3-i1492.PCM 031495 his or her garage.No Owner shall park,store,or keep on hisl other use if such storage or use would prevent said Owner from’ (e)Garage Doors.All garage doors shall remain closed at all times,except as reasonably required for entry to and exit from the garage.Each Owner shall ensure that his garage door opener is in proper working order at all times. (f)Transfer of Interest.No Owner may lease,sub- lease,sell or give his garage to any individual who is not a resident within the Project.- Section 15.Compliance With Management Documents.All Owners shall be Members of the Association and shall comply with the terms and conditions as set forth herein and in the Articles and the By—Laws,and all Rules and Regulations of the Association and Architectural Review Committee.No Owner shall transfer any membership or interest in the Association,except upon the transfer of the Lot to which it is appurtenant.' Section 16.Declarant’s Improvements.Nothing in this Article or elsewhere in this Declaration shall limit the right of Declarant to complete construction of any Improvements to the Common Area and/or to any Lot owned by Declarant,or to alter the foregoing or to_construct such additional Improvements as Declarant deems advisable prior to completion and sale of the entire Project. The rights of Declarant under this Declaration may be assigned by Declarant to any successor to all or any part of Declarant’s interest in the Project,as developer,by an express assignment incorporated in a recorded deed transferring such interest to such -SUCCESSOI. Section 17.Solar Heating.No solar heating panels or other solar energy collection equipment shall be installed on any portion of any Lot or Common Area,or any Improvement thereon,un~ lless such equipment is installed in such location and in such manner as to be obscured from the View of other persons in the Project to the greatest degree practicable without significantly decreasing its efficiency.No person shall install any such panels or equipment without the prior written consent of the Architectural Review Committee,which shall have the right to reasonably restrict rand determine the size,shape,color,style,materials or location. of any such panels or equipment within the Project,subject to the provisions of California Civil Code Section 714,as same may be amended,from time to time.At a minimum,any solar panels are to be integrated with the roof design with the panels and,frame colored to match the roof or bronze anodized. Section 18.Antennas._No radio station or shortwave operators of any kind shall operate from any location in the Project.Except as otherwise required by law,no Owner shall install,or cause to be installed,or maintain any television, radio,"Citizens Band“(C.B.)antenna,satellite dish or other -73- 50076.DO3—11492.FCM 031406 rsimilar electronic receiving or broadcasting device (including those devices having a diameter or diagonal measurement of one meter or less)in the Project in such a manner as to be visible from the Common Area,unless (1)approved by the.Architectural Review Committee (which approval for a video or television antenna, including a satellite dish,shall not be unreasonably withheld or delayed but may include restrictions which do not significantly increase the cost of the installation,maintenance or use of the device or significantly decrease its efficiency or performance or (preclude reception of an acceptable quality signal)and (2)in compliance with all applicable ordinances of the City,California Statutes (including,but not limited to,Civil Code Section 1376), and Federal Regulations,as each may be amended or revised.' Section l9.(,Leasing.No Owner shall be permitted to rent or lease his Lot for transient or hotel purposes or for a period of less than thirty (30)days.All rental and lease agree~ ments shall be in writing and shall provide that the terms of such agreement shall be subject in all respects to the provisions of this Declaration,By-Laws and Articles,and that any failure by the tenant or lessee to comply with-the terms of such documents shall constitute a default under such agreement.Notwithstanding the foregoing,each Owner shall comply with any initial Owner occupancy "requirements imposed by Declarant. section 20.Drilling.No oil drilling,oil development operations,oil refining,quarrying or mining operations of any kind shall be permitted upon or in the Project,nor shall oil swells,tanks,tunnels or mineral excavations be permitted upon or in the Project;No derrick or other structure designed for use in boring for oil,water or natural gas shall be erected,maintained or permitted upon or in the Project. P Section 21.Trash.No rubbish,trash,garbage or other waste material shall be kept or permitted upon any portion of the Project,except in covered sanitary containers approved by the City located in appropriate areas screened and concealed from view by a fence,wall or other screen approved by the Architectural Review Committee,or in such portions of the Project,if any,improved with trash receptacles provided for the use of Owners,and no odor y shall be permitted to arise therefrom so as to render the Project, or any portion thereof,unsanitary,unsightly,offensive or detri- mental to any other property in the vicinity thereof or to its occupants.All such refuse which is put out for pickup,shall be in conformance with all appropriate standards established by the City or governing agency.In the event trash is collected from each individual Lot,appropriate sanitary containers may be exposed to the view of neighboring Residences only when set out on the streets no earlier than 5:00-p.m.the night prior to the trash pick~up day -79-"50076.003-11492.P'CM 031405 and removed from the street within ten (10)hours after pickup, unless otherwise modified by the Board. ,Section 22.Drainage,There shall be no interference with the established drainage pattern over any Lot within the Project as to affect any other Lot or the Common Area,unless adequate alternative provision is made for proper drainage and is approved in writing by the Architectural Review Committee.For purposes hereof,"established"drainage is defined as the drainage which exists at the time such Lot is conveyed (escrow closed)to a purchaser from Declarant,or later grading changes or architectural plans that are shown on plans approved by the Architectural Review_ Committee.Each Owner further agrees not to obstruct,retard or otherwise interfere with,in any manner whatsoever,any drainage swales,or to perform any grading or construction on his Lot which may result_in creating an excessive amount of surface water runoff (i.e.,an amount of water beyond the flow originally intended and, provided for by the approved grading plan)to flow into said y drainage swales.Except as may be otherwise maintained by the aAssociation,each Owner of a Lot shall,at his sole cost and expense,maintain that portion of any drainage swale or other _drainage devices located on his respective Lot. Section 23.Prohibition Against Further Subdivision. No Owner shall make any conveyance,execute any document or map,or enter into any contract which shall purport to further subdivide, any Lot in any manner whatsoever,including,without limitation, .subdividing such Lot into additional lots,condominiums,stock cooperatives or timeshare uses,whether by map,deed or contract. Any such conveyance,document,map or contract shall be void and of no force or effect whatsoever..' Section 24.Yards and Decks,Yards and decks,and all -furniture,plants and other improvements situated therein,shall be i kept at all times in a neat,clean,safe and attractive condition. Clothes,towels,blankets,laundry,or clotheslines shall not be_ placed on or hung from any deck,or any portion of the yard or Common Area,where doing so would be visible from any other Lot, Common Area or the public.Decks and yards shall not be used for ‘storage of any items deemed inappropriate by the Architectural Review Committee.- Section 25.Exemption of Declarant.Nothing in this iArticle or elsewhere in this Declaration shall limit,restrict, abridge or control,in any manner whatsoever,the rights of De- clarant to complete the planning,development,grading,construc- ption,advertising,marketing,leasing and sales of the Lots,and all other property within the Project (including any property which may be annexed thereto pursuant to the provisions of this Declara- tion),including,without limitation,the following specific -80-S0O?S.0O3—l1492.FCM 031405 rights,which may be exercised by Declarant,or by its agents and, employees,in conjunction with such development and marketing,for a period of five (5)years from the date of recordation of this Declaration,or until all Lots in Tract 32070 are sold (and escrows closed),whichever shall occur last: I (a)The right to maintain and operate one (1)or more advertising,sales or leasing office(s)located upon any Lot(s)owned by Declarant or upon any Common Area without payment of rent or approval of the Association;' i (b)The right to post and display from any Lot(s) owned by Declarant or from any Common Area any sign,flag, banner,billboard or other advertising which Declarant may,in its sole discretion,deem appropriate,irrespective of size, color,shape or materials of such items,except to the extent that the exercise of said right conflicts with any provisions of the City’s Municipal Code or other applicable governmental regulations;'4 t .(c}The right to install,place,replace,con- struct,reconstruct,modify or remove any Improvement from any Lot owned by Declarant or from any Common.Area,as Declarant may,in its sole discretion,deem appropriate;provided that in the event Declarant removes any Association owned Improve~ ment from any Common Area without the express prior written consent of the Board,Deolarant shall replace such Improvement with an Improvement of substantially similar value,appearance, and utility within a reasonable period following completion of any work necessitating the removal of the Improvement; (d)The right to conduct any commercial activity iupon any Lot owned by Declarant or upon any Common Area which reasonably relates to the development,marketing,leasing or sales of the Lots in the Project;and (e)The right to park vehicles upon any Lot owned by Declarant or upon any Common Area. All or any portion of the rights of Declarant herein and .elsewhere in this Declaration may be assigned by Declarant to any successor~in-interest in the Project,including the Annexation Property,by an express written assignment recorded in the Office of the County Recorder.'m ' Section 26,No Easements for View Purposes;Disclaim- er.Procedures for the approval of Improvements which may be constructed upon Lots in the Project which are consistent with the architectural standards may be adopted,from time to time,pursuant to applicable provisions of the Declarant.The architectural ..8:L_ 50076.00}-11492.FCM 031406 standards may have some effect on views and the passage of light and air to individual Lots.However,by promulgation and enforce-, ment of the architectural standards,or otherwise,neither Declar- ant,the Board nor the Architectural Review Committee,or the members,employees or consultants of any of the foregoing,haves made any representations whatsoever concerning the view,if any, that a particular Lot or other Improvement thereon will enjoy. There are no express or implied easements or rights whatsoever appurtenant to any Lot for view purposes,or for the passage of light and air.Each Owner,by accepting a deed to a Lot,hereby ex- pressly acknowledges and agrees that further construction within ' the Project-may impair the view from such Owner's Lot,and each Owner hereby expressly consents to any such impairment.Neither the Declarant,Board,Architectural Review Committee,nor the City make any claim,warranty,or guarantee that views from any Lot will be preserved as development of surrounding properties occurs. Section 27.Pollutant Control.The Association and each Owner shall comply with all requirements of the Water Quality Management Plans,any NPDES requirements,and the BMP guidelines (as defined below),as such requirements and guidelines apply to the Project. A.NPDES Requirements.The Project is subject to all Federal,State and local requirements of the National Pollutant Discharge Elimination System ("NPDES")adopted pursuant to the Federal Clean.Water Act.Pursuant to a NPDES General Permit adopted by the State Water Resources Control Board,the City has adopted one or more Water Quality Management Plans for the Project which identify certain Best Management Practices (”BMP")to reduce .the discharge of pollutants to storm water facilities,before, during and after construction on the Project is completed (e.g., g NPDES and Section 5650 of the California Fish and Game Code prohib-I it,among other things,discharging anything other than natural rain water into storm drainage systems).The.Association and the Owners shall comply with all applicable BMPs and perform all maintenance imposed by the Water Quality Management Plans,as amended,and the Association shall obtain any certifications and permits or accept an assignment from Declarant of any such certifi- cations and permits as are required by the Water Quality Management Plans.The costs of the Association's portion of such maintenance, if any,shall be treated as Common Expenses.. B.Guidelines.The Association shall ensure that all Common Area landscape irrigation is implemented in accordance with the BMPS,including without limitation (a)the provision for water sensors and programmable irrigation times allowing for short cycles,(b)the use of planting material similar to that installed’ by Declarant,as applicable,and with similar water requirements in order to reduce excess irrigation runoff and to promote surface -82- 50076.0D3—11492.FCM 031405 filtration,and co)the maintenance of all permanent slopes with required landscaping with native or other drought tolerant planting materials. Except as.specifically approved in writing by the La Quinta Fire Department,no hazardous activities,including those described in the City's Municipal Code,as the same may be amended from time to time (e.g.,welding,-open flame or storage of flammable liquids) shall be conducted within the Project at any time.Nothing other than natural rain water may be discharged into the storm drains and *storm drainage system located on private or public property.Toxic chemicals or hydrocarbon compounds such as gasoline,motor oil,_ antifreeze,solvents,paints,paint thinners,wood preservative and other such fluids shall not be discharged into any street,public or private,or into storm drains or storm water conveyance systems. i Use and disposal of pesticides,fungicides,herbicides,insecti~ cides,fertilizers and other such chemical treatments shall meet Federal,State,County,and City requirements as prescribed on their respective containers.All Owners within the Project are required to comply with such restrictions. dsection 28. Paired Homes.The provisions contained in this Section shall apply only to Residences within the Project that constitute Paired Homes (as defined below). (a)Definitions..For purposes of this Section,the following terms shall have the meanings set forth herein. ,(1)"Common Roof."Common Roof”shall mean the common roof of a Paired Home that is shared by the, Owners of Residences therein.'' (2)i"Paired Home."Paired Home"shall mean a two—Residence attached dwelling structure constructed upon two (2)Lots,the Residences of which are separated at the common_boundary line of said Lots by a Party Wall. (3)"Party Wall. "Party Wall"shall mean thee common wall that separates the Residences of a Paired’ Home.-c (b)’Common Roof. (1)Use of Common Roof.Qwners who share a Common Roof shall equally have the right to use such Common Roof except that each Owner shall have the right to the exclusive use of the Common Roof that is within his Lot.Neither Owner shall use any portion of the Common Roof so as to interfere with the use and enjoyment of the other Owner of the Common Roof.i ”- ~33?’.500‘?6.003-11492 .FCM 031.406 (2)'Routine Repair and Maintenance.Each Owner shall perform routine maintenance and repair of the portion of the Common Roof that is within his Lot at his own cost as long as such maintenance and repair does not extend into the portion of the Common Roof that is within the contiguous Residence that shares the use of such Common Roof.Any routine repair and maintenance that- extends into the Common Roof of both Residences of a . Paired Home shall be performed by a licensed contractor mutually acceptable to both Owners and the cost of such work shall be allocated to the Owners who share the use ,of such Common Roof in the manner set forth below for the allocation of costs and expenses.. .(3) that the entire Common Roof is substantially damaged or destroyed,the Owners who have the use of such Common Roof shall cause such Common Roof to be repaired or replaced as necessary.In the event that such Owners are unable to reach agreement on effecting any such repair or replacement of the Common Roof on matters such as the choice of contractor,cost,design,roofing materials or. colors,the procedure described in Subparagraph (5)below shall apply.‘ '(4)Procedure for Instiqatinq Action.Any Owner of a Residence in a Paired Home may initiate the procedure for effecting any repair or replacement of a Common Roof,the cost of which is to be shared by the Owners of both of the Residences within a Paired Home by providing written notice of such action to the Owner of Major Damage or Destruction.In the'event' the other Residence.A written notice from an Owner of an Residence in a Paired Home shall include the amount of the bid obtained by such Owner for the repair or replace~ ment of the Common Roof and the name of the licensed contractor that submitted such bid.The Owner who re- ceives such notice shall have fifteen (15)days from and after the delivery thereof to approve such bid and the use of such licensed contractor or to submit a bid from a licensed contractor of his choice for the completion of~_ the work.If the Owners are not able to agree on the bid and the selection of the licensed contractor,the proce~ dure described in Subparagraph (5)below shall apply; (5)Procedure for Resolving Disputes.If that rowners are unable to agree on matters such as the choice of a licensed contractor,cost,design,roofing materials or colors,within a period of fifteen (15)days from the —date of delivery of notice from one such Owner to the other Owner of the Paired Home advising of the need forms any repair or replacement of a portion of the Common Roof that affects such other Owner,the recipient of such .—84—S0076 .003-11492 .I-‘CM 031406 notice shall obtain a bid from a licensed contractor of, his choice and the two Owners shall then obtain a third bid from a licensed contractor mutually acceptable to both Owners and the job of repair or replacement of the Common Roof shall be awarded to the licensed contractor that submitted the lowest bid.If the Owners are unable to agree on design,roofing materials or colors,the Common Roof shall be replaced with a roof of the same .design,materials and color as originally constructed by .Declarant.However,notwithstanding the foregoing,in the event that an Owner fails to (i)respond to any ‘notice,(ii)obtain a price bid,or (iii)execute a contract for the completion of the work within fifteen (15)days of the receipt of written notice from the other Owner,such other Owner shall have the right to proceed with the work of effecting the repair and replacement of the Common Roof as necessary to protect his Residence and seek appropriate reimbursement.i (c)Party Walls. (1)Procedure For Instiqatinq Action.Any Owner of a Residence in a Paired Home may initiate the .procedure for effecting the repair or replacement of a Party Wall by providing written notice of such action to the Owner of the other Residence that shares the use of such Party Wall.The written notice from an Owner ofia Residence in a Paired Home shall include the amount of the bid obtained by such Owner for the repair or replace~ ment of the Party Wall and the name of the licensed contractor that submitted such bid.vThe Owner who re- ceives such notice shall have fifteen.(lS)days from and after the delivery thereof to approve such bid and the- use of such licensed contractor or to submit a bid from a licensed contractor of his choice for the completion of the work._A l (2)Procedure For Resolving Disputes.If the Owners are not able to agree on the-bid and the selection of the licensed contractor,a third bid shall be obtained at the request of either Owner from a licensed contractor‘ mutually acceptable to both Owners and the work shall then be awarded to the licensed contractor that submitted- the lowest bid as set forth above.Each Owner shall contract individually with the licensed contractor for the performance and for the payment of the work.Howev- er,notwithstanding the foregoing,in the event that an Owner fails to (i)respond to any notice,(ii)obtain a price bid,or (iii)execute a contract for the completion of the work within fifteen (15)days of the receipt of written notice from the other Owner,such other Owner «shall have the right to proceed with the work of effect—a -85- 50076 .O03-11492 .FCM 031406 b ing the.repair and replacement of the Party Wall asi necessary to protect his Residence and seek appropriate reimbursement. (d)Exterior Maintenance of Paired Homes. (1)Maintenance Responsibility.Each Owner of a Residence within a Paired Home shall perform the rou- tine maintenance and repair,to include the exterior painting thereof,of that portion of such Paired Homey designated for such Owner on Exhibit "E?attached hereto, which portion may include a portion of the Paired Home_ that is within the adjoining Lot and may exclude a por- tion of the Paired Home that is within the Lot of such‘ Owner (Exhibit "E"is a general illustrative depiction of the Residences as of the recordation of this Declaration and should be used as a guide for affected owners to establish their respective maintenance obligations re—, garding their individual Residence —the as built condi—t tion of the Residences shall be controlling).The intent and purpose of the foregoing provision is to create boundary lines to separate the portions of the Paired Homes that are to be maintained and repaired by each Owner of a Residence therein that coincide with a struc—.. tural feature of the dwelling rather than the boundary line of the Lot so that the maintenance and repair of P such a Paired Home at different times and by separate Owners does not detract from the attractiveness of the. Paired Home and the Project. (2)Reconstruction of Paired Home.In the event that any Paired Home is reconstructed in a style other than as originally constructed by Declarant,the'Association shall have the right to modify or amend y Exhibit "E,"or to grant a variance from compliance with Exhibit "E,"so that the boundary lines that separate the" maintenance and repair obligations of the Owners of a reconstructed Paired Home coincide with the structural features of the reconstructed dwelling rather than the boundaries that were established on Exhibit "E"for the original Residence.. (e)willful or Malicious Damage.In the event that any portion of a Common Roof,Party Wall or Paired Home_has been damaged or destroyed by any negligent or malicious conduct or omission of one of the Owners who shares the use thereof,his family,guests,employees,tenants or agents, such Owner shall be responsible for the cost of repairing such damage.'Any increase in insurance payable by an Owner that is a direct result of damage by any such negligent or malicious act or omission of a particular Owner,or any of such Owner's family,guests,employees,tenants or agents,shall also be paid by such Owner.-P ;85_50076.003-1143?.FCM031406 (f)Treatment for Wood~Destroyinq Pests. (1)Temnorarv Relocation.If it becomes necessary to institute any treatment for wood-destroying pests or organisms that requires that a Paired Home be vacated for any period of time,both of the Residences within such Paired Home shall be vacated during the period of the treatment so that the Paired Home can be promptly and effectively treated.The Owners will be responsible for the temporary relocation of the occupants of their Residence during the period of any such treat-R ment.. y (2)Procedure for Instiqating Action.Any fowner of a Residence in a Paired Home may initiate the procedure for effecting any treatment for wood—destroying pests or organisms,the cost of which is to be shared by the Owners of both of the Residences within a Paired Home,by providing written notice of such action to the Owner of the other Residence.A written notice in con- nection with the treatment of wood—destroying pests or organisms shall be given not less than fifteen (15)days nor more than thirty (30)days prior to-the date on which the Residence must be vacated and shall include a Copyéof the notice issued by a licensed pest control operator evidencing the need for such treatment,the date and time that the treatment is to commence and the time of the termination of the treatment. (g)Allocation of Costs.Any costs and expenses that are to be shared by the Owners of the Residences within a’ Paired Home shall be apportioned to each Residence as follows: (1)The costs and expenses in connection with the repair and replacement of a Common Roof shall be allocated to a Residence on the basis that the gross ‘square footage of the Common Roof within such Residence (‘bears to the total gross square footage of the Common ROOE; (2)The costs and expenses in connection with the repair and replacement of a Party Wall shall be allocated equally to the Residences that share the use thereof;and .T W - (3)The costs and expenses in connection with the treatment for wood~destroying pests or organisms shall be allocated to a Residence within the Paired Home -in the proportion that the gross square footage of such Residence bears to the total gross square footage of both of the Residences within the Paired Home.P .37.50076.003-11-E92 .1-"CM 031406 (h)Paired Home Easements. (1)Support,Settlement and Encroachment. There are hereby created,granted and established perma- nent easements appurtenant to each Paired Home for the Vplacement of all Party Walls,where such Party Walls were ioriginally installed by Declarant,regardless of whetherisuchPartyWallsarelocatedpreciselyupontheboundary separating two (2)Lots.Specifically,in the event a Party Wall,or portion thereof,is not located precisely upon the actual boundary line,such that a portion of one (1)Owner's Residence is located upon an adjacent Owner’s Lot,there shall be a permanent easement for encroachment purposes appurtenant to the first Owner's Lot on,over and across that portion of the adjacent Owner's Lot which" is located between the boundary line and the Party Wall. In addition to the foregoing,there is created,granted and established permanent easements appurtenant to each, Paired Home,easements over a Lot and_Residence improved with a Paired Home for (i)support,the accommodation of the natural settlement or shifting of any portion of the improvements and for the maintenance thereof,and (ii) minor encroachments by reason of any roof or eave over- hang from a Residence (as originally constructed by Declarant)and for the maintenance of such roof or eave overhang by the Owner of the dominant tenement for as m long as such encroachment exists,which easement shall be appurtenant to the other Residence within such Paired home. (2)Drainage.There is hereby created,grant- T ed and established permanent easements appurtenant to each Paired Home,an easement over the Common Roof of a Residence for surface drainage,which easement shall be appurtenant to the other Residence within such Paired Home. y (3)Inqress and Egress.There is hereby created,granted and established permanent easements iappurtenant to each Paired Home,an easement over each . Residence within a Paired Home and Lot for reasonable ingress and egress for the repair and maintenance of the Improvements described in Subparagraphs (b),(c),(d), (e)and (f)of this Section,which easements shall be appurtenant to the other Residence within such Paired i.Home.T . (i)Indemnity.Each Owner who exercises the ease- ment rights described in Subparagraph (h)above ("Benefitted Property Owner"),by the acceptance of the conveyance of such Residence,agrees that he shall indemnify,protect,defend and. hold harmless the Owner of the other Residence within such Paired Home (the "Burdened Property Owner”)from and against _E38._ 500?6.003—l1492.FCM 031406 any and all claims,obligations,expenses,liabilities or costs,including,but not limited to,attorneys’fees,for property damage or bodily injury,sickness,disability,— disease or death of any person of persons arising directly or indirectly from the use of the easements caused in whole or in part by the Benefitted Property Owner,its employees,contrac- tors or agents,except.to the extent that such claim,obliga- tion,expense,liability or cost arises out of the willful or negligent acts or omissions of Burdened Property Owner.~Each Burdened Property Owner of a Residence encumbered by the , easement rights described in Subparagraph (h)above agrees to indemnify,protect,defend and hold harmless the Benefitted Property Owner receiving the benefit of such easement,from. land against any and all claims,obligations,expenses,liabil- ities and costs,including,but not limited to,attorneys’ fees,for property damage and bodily injury,sickness,dis- ability,disease or death of any person or persons arising directly or indirectly from interference with-the Benefitted Property Owner’s use of the easements by the Burdened Property.: Owner,its employees,contractors or agents,except to the ‘extent such claim,obligation,expense,liability or cost arises out of the wi1lful.or negligent act or omission of such Benefitted Property Owner.- Section 29."No Warranty of Enforceability.While Declarant has no reason to believe that any of the Protective Covenants contained in this Article or elsewhere in this Declara- tion are or may be invalid or unenforceable for any reason or to ‘ any extent,Declarant makes no warranty or representation as to the present or future validity or enforceability of any such Protective Covenants.Any Owner acquiring a Lot in the Project in reliance on one or more of such Protective Covenants-shall assume all risks of the validity and enforceability thereof and,by acquiring the Lot, agrees to hold Declarant harmless therefrom.» ARTICLE IX ARCHITECTURAL.REVIEW ~APPROVAL Section 1.Exemptions From Architectural Review.Ex- cept as otherwise provided herein,all Improvements shall be subject to architectural approval by the Association in accordance with the provisions of this Declaration.Notwithstanding the C foregoing,Declarant shall be exempt from compliance with any of the provisions of this Article as they may relate to the original iconstruction and development of the Project by Declarant in accor- dance with the plans approved by the City;provided,however,if Declarant shall desire to construct any Improvements to the exteri- or of a Residence after such Residence has been completed and - ,approved by the City,Declarant shall obtain approval for such Improvements from the City;and,provided further,if Declarant _E;9._50076.003-1l492.FCM 031406 shall retain a Residence for personal use,any Improvements to the exterior of such Residence shall be subject to architectural ap- proval pursuant to this Article. Section 2.Architectural Review.Except for the pur-* poses of proper maintenance and.repair,and except as may otherwise be permitted hereunder,no person shall install,modify,or change any Improvement,including,without limitation,solar heating panels,lighting,shades,screens,awnings,patio covers,decora—‘ tions,fences,screen doors,aerials,antennas,radio or television broadcasting or receiving devices,air conditioning units,or change or otherwise alter the exterior of any Residence,including exterior colors or appurtenant Improvements,unless same is ap- proved by the Architectural Review Committee and,as required by the City.’For the purposes of this Section,the term "exterior" shall mean any outside wall,outside surface,roof,outside door, patio,balcony,deck,garage or other outside structure of said Residence which is visible to others in the Project and/or to thei public. Section 3. I Architectural Review Committee.The Archi- 'tectural Review Committee is hereby authorized with the rights and powers set forth in this Article.Said Committee shall consist of not less than three (3)members,nor more than five (5)members. All members of the.Architectural Review Committee may be appointed and replaced by Declarant until one (1)year following issuance by~ the California Department of Real Estate of the first original Final Subdivision Public Report for the Project.In the event of the failure or inability of any member of the Architectural Review Committee to act,the remaining members shall designate a successor ,who shall serve for the remainder of the term of the member he. replaces,The Declarant shall appoint all of the original members of the Architectural Review Committee,and replacements thereto as long as Declarant has such power in accordance with the provisions herein..Further,Declarant reserves the power to appoint a majority of the members of the Architectural Review Committee until the fifth (5th)anniversary of the issuance of the Final Subdivision Public Report for the first phase of the Project..After one (1)A year from the date of the issuance of the Final Subdivision Public Report for the Project,the Board shall have the power to appoint one (1)-member to the Architectural Review Committee until ninety percent (90%)of the Lots in Tract 32070 have been sold,or until the fifth anniversary date of the issuance of the first Final ‘Subdivision Public Report for the Project,whichever first occurs. Thereafter,the Board shall have the power to appoint all of the members of the Architectural Review Committee.All members appoint- ed to the Architectural Review Committee by the Board shall be from the membership of the Association,unless otherwise determined byi the Board.Members appointed to the Architectural Review Committee by the Declarant,however,need not be members of the Association. No member of the Architectural Review Committee shall be liable to any person for his decisions or failure to act in making decisions -90:y 50976 .003-11492 .FCM 031406 as a member of the Architectural Review Committee.Declarant may, in its discretion and at any time,assign to the Association by written assignment its powers of removal and appointment with respect to the Architectural Review Committee,subject to such terms and conditions regarding the exercise thereof as Declarant may impose. Section 4.Meetings of the Architectural Review Com- mittee.The Architectural Review Committee shall meet,from time to time,as necessary to perform its duties hereunder.The Architec- tural Review Committee may,by a majority vote of the members (except the right to approve any Improvement or architectural submittal required by this Declaration)thereof,delegate any of its rights and responsibilities hereunder to one (1)or more duly licensed architects,who shall have full authority to act on behalf of the Architectural Review Committee on all matters so delegated. ,Section 5.Architectural Standards/Guidelines.The Board (or Architectural Review Committee if authorized by a majori- ty of the_Board)may,from time to time,adopt architectural stan- dards/guidelines to be administered through the Architectural Review Committee for use by said Committee in reviewing plans and specifications for proposed Improvements to an Owner’s Lot (said standards/guidelines do not eliminate the need for compliance with Section 8 hereinbelow regarding obtaining City review and approval, as required).The architectural standards/guidelines may include, without limitation,those guidelines,procedures,limitations and restrictions upon Owners set forth below:I - (a)The placement,reconstruction,addition,change or alteration of any Improvement on a Lot or the exterior of a Residence,including the nature,kind,shape,materials,ex- yterior color,location,and height of any Improvement,includ- ing landscaping; (b)A description of the type of such construction, additions,changes or alterations which,if completed in conformity with the architectural standards,do not require approval of the Architectural Review Committee;- (c)Conformity of completed Improvements to plans and specifications approved by the Architectural Review Committee;I —C C (d)iTime limitations for the completion of the Improvements for which approval is required pursuant to the architectural standards;I V A (e)Procedures for submission of plans and speci- fications submitted for Architectural Review Committee review, including,without limitation,floor plans,site plans, _.9:L_ 50076.003-11492.FCM 031406 drainage plans,elevation drawings,landscape plans and a description or samples of exterior colors and materials; (f)Restrictions controlling the species and place- ment of any trees,plants,shrubbery,ground cover,etc.,to be placed,planted,irrigated and maintained_in the Project (£é§;’approved landscape palettes); (g)Restrictions controlling the placement of any trees,plants,shrubbery,ground cover,etc.,to be placed iplanted,irrigated and maintained in the Project (including requirements regarding the use of root barriers and/or other similar devices to prevent damage to Residences,hardscape and -other Improvements);and _(h)'A reasonable schedule of fees for submission of plans and specifications or bonds (or cash deposits)to ensure iproper completion and clean up of the anticipated work and_ compliance with the approved plans. The architectural standards may be periodically updated or revised by the Board,as the Board,in its reasonable discretion,may deem appropriate.The Architectural Review Committee shall maintain a copy of the then current architectural standards on file at all times,and shall provide each Owner with a copy of the architectur— al standards upon written request.The Board shall establish a reasonable fee tor copies of the architectural standards,and other related materials,to cover costs of reproduction,administration —and-handling. Section 6.Architectural Approval —Review of Plans and Specifications.The Architectural Review Committee shall comply_ with the architectural guidelines/standards adopted by the Board (including any supplementary Rules and Regulations thereto adopted by the Board)to examine any request made pursuant to this Article, in order to ensure that the proposed plans are in conformance with and are harmonious to the exterior design and existing materials of the buildings in the Project.The Architectural Review Committee shall consider and act upon any and all plans and specifications ‘submitted for its approval under this Declaration,and perform such other duties as,from time to time,shall be assigned to it_by_the Board,including the inspection of construction and progress to , ensure its conformance with the plans approved by the Architectural Review Committee.No construction,alteration,grading,addition, excavation,demolition,modification,decoration,redecoration or reconstruction of an Improvement shall_be commenced or maintained by any Owner until the plans and specifications therefor showing the nature,kind,shape,height,width,color,materials and location of the same shall have been submitted to the Architectural Review Committee and approved in writing by the Architectural Review Committee and approved by the City as required.Each Owner acknowledges and agrees that approval from the City alone is not 50076 .D03 -11992 .PCM 031406 -92.. sufficient to comply with the requirements of this Declaration.The initial address for submission of such plans and specifications shall be determined by the Board.The Architectural Review Commit- tee shall approve the plans and specifications submitted for its approval only if it deems that:(a)the construction,alterations or additions contemplated thereby and the locations indicated will not be detrimental to the appearance of the surrounding area of the“ Project as a whole;(b)the appearance of any structure affected thereby will be in harmony with surrounding structures;(c)the construction_thereof will not detract from the beauty,wholesome- ness and attractiveness of the Common.Area,or the enjoyment thereof by the Owners;(d)the upkeep-and maintenance thereof will: not become a burden on the Association;and (e)the plans and specifications substantially comply with the Architectural stan- dards/guidelines.The Architectural Review Committee may condition its approval of proposals or plans and specifications for any Improvement:(a)on such changes therein as it deems appropriate, (b)upon the agreement by the person submitting the same to grant appropriate easements to the Association for the maintenance-of the Improvement,or (c)upon the agreement of the person submitting the same to reimburse the Association for the cost of such maintenance, Aor all of the above,and may require submission of additional plans and specifications or other information prior to approving or disapproving the submission.' The Architectural Review Committee may also issue rules or guidelines setting forth procedures for submission of plans for_ approval,requiring a payment of a fee to the Association to accompany each submission of plans and specifications,or addition- al factors which it will take into consideration in reviewing submissions which are consistent with the architectural stan- dards/guidelines. The Architectural Review Committee may require such detail in plans and specifications submitted for its review as it deems proper,including,without limitation,floor plans,site plans,drainage plans,elevation drawings,landscape plans and description or samples of exterior material and colors. Section 7.Decisions of the Architectural Review Com~ mittee.Until receipt by the Architectural Review Committee of any .required plans and specifications,and such other information as may be required in Section 6 above,the Architectural Review Committee may postpone review of any plans submitted for approval. Decisions of the Architectural Review Committee and the reasons therefor should be transmitted by the Architectural Review Commit- tee to the applicant,at the address set forth in the application for approval,within forty-five (45)days after receipt by the Architectural Review Committee of all plans,specifications and materials required.Any application submitted pursuant to the provisions of Section 6 above shall be deemed disapproved,unless written disapproval or a request for additional information or -93-50076.003—l1492.FCM 031405 materials by the Architectural Review Committee shall have been transmitted to the applicant within forty—five (45)days after the receipt by the Architectural Review Committee of all required materials.C i A T.. _ Section 8.Submittal to City —Right of Architectural Review Committee to Review.Upon obtaining the written approval of the Architectural Review Committee,the Owner shall thereafter submit the plans and specifications to the City for review and approval as a Planned Development Permit Amendment and/or building permits.In the event that all-necessary approvals of the City for the issuance of a building permit or other permits required to commence the work contemplated in the plans and specifications are not obtained within SlX (6)months from the date of approval by the Architectural Review Committee,the Architectural Review Committee shall have the right,but not the obligation,to re—review all previously approved plans and specifications,and approve,deny,or modify said plans and specifications.In addition,in the event that the City requires modifications to the plans and specifica~ tions previously approved by the Architectural Review Committee, the Owner shall submit to the Architectural Review Committee all modifications to the plans and specifications previously approved by the Architectural Review Committee.In the event the Owner is obligated to resubmit plans and specifications to the Architectural Review Committee to reflect the modifications required by the City, said Committee shall have the right to review and approve,deny, and/or impose further conditions on any such modifications and the plans and specifications- .applicable provisions of Section 9.Approval of City.Each Owner is solely responsible for ensuring that all plans and specifications submit- ted by such Owner to the Architectural Review Committee comply with,and do not violate,any applicable provision of law,includ- ing,without limitation,the Fair Employment and Housing Act (California Government Code Section 12900 gg §§g.),the City’s Municipal Code,all applicable building and construction codes,and all other applicable laws,regulations,and ordinances governingi land use and public.safety.Approval of_any proposed or existing‘ Improvement,or completion of an Improvement,by.the Architectural Review Committee or the Board shall not'be construed to warrant ori represent in any way that the Improvement was approved by or complies with the minimum standards of the City or any other flaw.Similarly,approval of any proposed or existing Improvement by the City shall not be construed to constitute approval of such Improvement by the Architectural Review Committee or the Board. Section 10.Conflicts Between City and Architectural Review Committee.In the event of any conflict in the conditions of approval of any proposed Improvements imposed by the City and the Architectural Review Committee,the more restrictive of such conditions shall be controlling.Further,nothing herein shall ;94—,50076.003-11-992 .FCM-031406 limit the Architectural Review Committee from imposing conditions of approval of any proposed Improvements which are more restrictive than conditions as may be imposed by the City.A Section 11.No Waiver of Future Approvals.The approv- al of the Architectural Review Committee of any submissions for any work done,or proposed to be done,or in connection with any other matter requiring the approval or consent of the Architectural Review Committee,shall not be deemed to constitute a waiver of any right to withhold approval or consent of any similar proposals, plans and specifications,drawings or other matters subsequently or additionally submitted for approval.‘ Section 12.Compensation of Members.The members of the Architectural Review Committee shall receive no compensation for services rendered,other than reimbursement by the Association for expenses incurred in the performance of such members’duties hereunder. Section 13.Variances.Where circumstances such as to- pography,location of buildings,location of landscaping or other matters require,the Architectural Review Committee,by the vote or written assent of a majority of the members thereof,may allow reasonable variances as to any of the Protective Covenants con- tained in this Declaration or provisions under the rules and regulations promulgated by the Architectural Review Committee,on such terms and conditions as it shall require.The granting of such a variance shall not operate to waive any of the terms and provi- sions of this Declaration for any purpose,except as to the par- ticular Lot and particular provision hereof covered by the vari- ance,nor shall it affect in any way the Owner's obligation to comply with.all governmental laws and regulations affecting the Owner's use of his Lot,including,but not limited to,zoning ordinances,lot setback lines or requirements imposed by the City or other governmental authority.a - I Section 14.Inspection of Work.Upon consent of the Owner,which consent shall not be unreasonably withheld,any member or authorized representative of the Architectural Review Committee may,at any reasonable hour and upon reasonable notice,enter and inspect any Lot which has been the subject matter of an approval of a submission for an Improvement to his Lot.Such entry shall be_ made with as little inconvenience to the Owner as reasonably possible,and any damage caused thereby shall be repaired by the Association.If the Architectural Review Committee finds that such work was not done in substantial compliance with the approved plans and specifications,it shall notify the Owner in writing of such noncompliance,specifying the particulars of noncompliance and shall require the Owner to remedy the same within thirty (30)days from the date of notification of such noncompliance.If a noncom- pliance exists,the Board,after Notice and Hearing,may levy a -95550076.003-1l492.FCM 031405 Compliance Assessment against such Owner for the costs of removing or remedying such noncompliance. Section 15.Non-Liability of Architectural Review Com- mittee Members.Neither Declarant,the Association,the Board or the Architectural Review Committee,or the members or designated representatives thereof,shall be liable for damages to any Owner submitting plans or specifications to them for approval,or to any Owner in the Project affected by this Declaration by reason of mistake in judgment,negligence or nonfeasance,unless due to _ willful misconduct or bad faith of the Architectural Review Com—, mittee.The Architectural Review Committee's approval or disap- proval of a submission shall be based solely on the considerations set forth in this Article,and in such rules and regulations as may be promulgated by the Architectural Review Committee,and the Architectural Review Committee shall not be responsible for review- ing,nor shall its approval of any plan or design be deemed approv— al of,any plans or design from the standpoint of structural safety and conformance with building or other_codes.' Section 16.Appeal.In the event plans and specifica- tions submitted to the Architectural Review Committee are disap- proved,the party making such submission may appeal in writing to the Board.The written request must be received by the Board not more than thirty (30)days following the final decision of the Architectural Review Committee.The Board shall submit such request to the Architectural Review Committee for review,and the written .recommendations of the Architectural Review Committee will be_- submitted to the Board.Within sixty (60)days following receipt of- the request for appeal;the Board shall consider the appeal at an open meeting and render its written decision.The failure by the Board to render a decision within said sixty (60)day period shall be deemed a decision against the party making such submission. ARTICLE X REPAIR AND MAINTENANCE. Section 1.Repair and Maintenance by Association. Except as may otherwise be provided in this Declaration,and without limiting the generality of the Article herein entitled "Powers and Duties of the Association,"the Association shall have the duty to maintain,in a neat,clean,safe,sanitary,attractive and orderly condition at all times,the Common Area designated in this Declaration,or in any subsequent Notice(s)of Annexation,as generally indicated hereinbelow (provided,however,that_notwith— standing the depictions on any Exhibit attached hereto,the Associationfs maintenance and repair obligations shall commence only with respect to those areas which are within a DRE Phase where Assessments have commenced against the Lots therein): i~96—S0O75.003411492.PCM 031405 50076.003 -1149?.FCM 031406 (a)The Common Area (and all Improvements thereon) to be maintained,landscaped,repaired,improved,restored and replaced in a neat,clean,safe,attractive and orderly condi- tion at all times shall include,but not be limited to,the following: (1)Maintaining all private streets and park» ing areas within the Project in'a condition comparable to the condition originally approved by the City. (2)Landscaping,irrigating,and maintaining the landscape maintenance areas depicted on Exhibit "A" -attached hereto or in a recorded Notice of Annexation,in a condition comparable to the condition originally ap- proved by the City,a (3)Maintaining all common open space and recreational areas (e.g.,recreation building,tennis ,courts,pool,spa,tot lots,benches,tables,trash receptacles)and all Improvements thereon (e.g.,play- ground equipment,gazebos,barbecues,fountains,fire- places),in a condition comparable to the condition originally approved by the City. (4)Unless otherwise maintained,maintaining the exterior surfaces (defined to mean the side fronting any public right-of~way or the Common Area),structural integrity,and the top portion of all perimeter walls, fences,and retaining walls originally constructed by Declarant and approved by the City (e.g.,see the depic~ tions on Exhibit-"C“). '»i ‘(5)Inspecting,_cleaning,and maintaining all ‘private structural BMPS and other private storm drainage facilities located on the Common Area (e.g;,see Exhibit "D"attached hereto)in accordance with Best Management Practices.(Any private concrete terrace drains located, within the individual Lots shall be maintained by the Owners of the Lots).'- (6) Maintaining all Project entry gates and electronic access systems,monumentation,and lights in a condition comparable to the condition originally approved by the City.*” ,,(7)Maintaining all clustered mailbox stan- bdards and light posts and common trash containers located on the Common Area_in a condition comparable to the condition originally approved by the City. -'97- _(8)Taking all action necessary to keep the Common Area neat,clean and generally free of trash, rubbish,graffiti,and debris.'‘A ‘ (9)A Maintaining all other areas or other Improvements of whatever nature as may,from time to time,be set forth in any Notice of Annexation and/or ‘designated by the Board.. (10)Maintaining everything that the Associa- tion is obligated to maintain in a clean,sanitary and attractive condition reasonably consistent with the level iof maintenance reflected in the most current budget of the Association,and in conformance with any Maintenance Guidelines,product manufacturers‘recommendations and guidelines,and commonly accepted maintenance practices. Unless specifically provided in any Maintenance Guide- lines,or as commonly accepted maintenance practices may govern,the Board shall determine,in its sole discre- tion,the level and frequency of maintenance of the Common Area and Improvements thereon (each Owner shall maintain everything that Owner is obligated to maintain in a clean,sanitary and attractive condition and in conformance with any Maintenance Guidelines and Mainte- nance Recommendations and product_manufacturers’recom- mendations and guidelines,as well as commonly accepted maintenance practices).- (11)Performing all necessary tasks required to conform with applicable City and/or State regulations. (b)Maintaining all amenities and all furnishings, .:equipment and other personal property owned by the Associa- tion;r i ‘‘_i _(C)Maintain all other areas,facilities,furni- ture,equipment,services or aesthetic components of whatso- ever nature as may,from time to time,be requested by the vote or written consent of three—fourths (3/4)of the voting power of the Members or as required by documents recorded by the Declarant;and (d)Except as otherwise herein specified as being paid by individual Owners,the costs of maintenance,repair, restoration and replacement as provided in this Article shall be Common Expenses and shall be paid out of the general fund of the Association.* Section 2.Maintenance Manual.The Declarant will deliver to the Board a "Maintenance Manual"which sets forth the Declarant’s and its consultants’recommended frequency of‘inspec-A tions and maintenance of various components of the Common Area.The Association shall implement,as minimum standards,the maintenance -93; 50076.003-11492 .FCM 031406 obligations for the Common Area as may be established by the Declarant. The Board shall,during its meetings,determine whether'i the recommended inspections and maintenance activities have been ffollowed,and,if any such recommendations have not been followed, what corrective steps,if any,need to be taken to assure proper inspection and maintenance of the Common Area.The Board shall keep a record of such determinations in the Board’s minutes.The_ Board shall,from time to time,make appropriate revisions to the Maintenance Manual.The Board shall review the Maintenance Manual for appropriate revisions at least on an annual basis after the Board has prepared the annual pro forma budget and reserve study required by the By—Laws.-C In addition to the obligations of a Maintenance Manual, the Board may have the Common Area inspected at least once every three (3)years to (a)determine whether the Common Area is being maintained adequately in accordance with applicable standards of maintenance,(b)identify the condition of the Common Area and any Improvements thereon,including the existence of any hazards or defects,and the need for performing additional maintenance, refurbishment,replacement or repair,and (c)recommend preventa- tive actions which may be taken to reduce potential maintenance costs to be incurred in the future.The Board may employ such experts and consultants as are necessary to perform such inspec- 'tion.The Board may have a report of the results of the inspection prepared.If determined appropriate by the Board,the report shall be furnished to Owners within the time set forth for furnishing Owners with the budget.The report should include at least the following: (a)A description of the condition of the Common Area,including a list of items inspected and the status of maintenance,repair and need for replacement of all such items;r (b)A.description of all maintenance,repair and replacement planned for_the ensuing fiscal year and included in the budget;— (c)-If any maintenance,repair or replacement is to be deferred,the reason for such deferral;C (d)A summary of all reports of inspections per- formed by any expert or consultant employed by the Board to perform inspections;e T . (e)A.report of the status of compliance with the maintenance,replacement and repair needs set forth in the inspection report for preceding years;and ‘' ‘-99-soo7a.oo3-11492.scM 031406 (f)‘Such other matters as the Board deems appropri- ~ate. Section 3.Proiect Inspections.i The Board shall require strict compliance with all provisions of this Declaration and shall periodically cause a compliance inspection of the Project to be conducted by the Architectural Review Committee to report any violations thereof.The Board shall also cause inspections of the Common Area and all Improvements thereon to be conducted in confor- mance with the applicable Maintenance Guidelines,and in the absence of inspection frequency recommendations in any applicable Maintenance Guidelines at least once every three (3)years,in conjunction with the inspection required for the reserve study to "be conducted as required herein,in the By—laws or by State law,to (a)determine whether the Common Area is being maintained adequate- ly in accordance with applicable standards of maintenance,(b) identify the condition of the Common Area and any Improvements thereon,including the existence of any hazards or defects,and the need for performing additional maintenance,refurbishment,replace- ment,or repair,and (c)recommend preventive actions which may be taken to reduce potential maintenance costs to be incurred in the future.The Board shall during its meetings,regularly determine whether the recommended inspections and maintenance activities set forth in any applicable Maintenance Guidelines have been followed and,if not followed,what corrective steps need to be taken to assure proper inspections and maintenance of the Common Area and all Improvements thereon.The Board shall keep a record of such determinations in the Board's minutes.Until otherwise notified by the Declarant,the Board shall keep Declarant fully informed of the Board's activities under this Section."The Board shall employ, consistent with reasonable cost management,such experts,contrac- tors and consultants as are necessary to perform the inspections and make the reports required by this Declaration,including this Section. The Board shall prepare a report of the results of each of the inspections required by this Section,which shall comply with the applicable Section above,including:Unless otherwise instructed by Declarant in writing,for a period of ten (10)years after the date of the last close.of escrow for a Lot in the Project,the Board shall also furnish to Declarant (a)the report of each inspection performed for the Board,whenever such inspection is performed and for whatever portion of the Common Area that is inspected,within thirty (30)days after the completion of such inspection,and (b)the most recent inspection report prepared for any portion of the Common Area,within ten (10)days after the Association's receipt of a written request therefor from Declarant. Section 4._Maintenance of Phases Subject to Construc- tion Easement.'Notwithstanding anything stated to the contrary in this Declaration,the Association shall have no obligation to maintain or repair any portion of a Phase until commencement of the Association's Assessments against the Lots within such Phase. —1oo- S0076 .DU3~11492 .PCM 031406 Should any Improvements overlap between Phases,the Association shall only be responsible to maintain that portion of such Improve- ments which lie in the Phase(s)in which the Association's mainte- nance obligations have comenced. Section 5.Repair and Maintenance by Lot Owners. Except as otherwise provided herein (including Section 1 above) regarding the Association's maintenance obligations affecting an Owner’s Lot (e.g.,see Exhibits WA,""C"and "D"attached hereto}, every Owner shall (at his own cost and expense}: (a)Maintain his Lot and the Residence located thereon,including,without limitation,all landscaping, fences,driveways,roofs,patios,patio covers,decks,deck covers,balconies,windows,window frames,screens,locks and doors,and structure of his Residence,landscaping and irriga- tion improvements,irrigation lines,sewer laterals,concrete terrace drains (in perpetuity)and all other Improvements located on or servicing such Owner’s Lot,in a neat,clean, safe and attractive condition at all times,and make all repairs as may be required.Such maintenance shall include ideveloping an inspection and prevention program for the prevention and eradication of infestation by wood destroying pests and organisms in the buildings on the Owner’s Lot. (b)Each Owner of a Lot shall,within six (6)‘ months after the close of escrow for the sale of a Lot to an "Owner from Declarant,complete installation of the landscaping in the front and side yard areas of the Owner’s Lot that were not originally installed by Declarant,and within twelve (12) months after the close of escrow for the sale of a Lot to.an Owner from Declarant,complete installation of the landscaping in the rear yard areas of Owner’s Lot that were not originally installed by Declarant.Thereafter,each Owner shall maintain his or her respective Lot and ensure the landscaping (e.g., trees,plants,grass,and other vegetation)is properly maintained and periodically replaced when necessary.The Board may adopt Rules and Regulations proposed by the Architectural Review Committee to regulate landscaping permitted within the ,Project.In the event that any Owner shall fail to install and ,maintain landscaping,including all slope areas within the , Lot,if any,in conformance with the Rules and Regulations,or shall allow his landscaping to deteriorate to a dangerous, unsafe,unsightly or unattractive condition,the Board,after .‘ Notice and Hearing,may enter such Owner's property for the purpose of remedying the condition,and such Owner shall promptly reimburse the Association for the cost thereof.Such cost may be levied by the Board as a Compliance Assessment.No ‘Owner may modify,change,tamper with,or alter in any manner «the Common Area (e.g.,certain yard areas),without the prior written approval of the Board,which approval may be withheld in the Board's sole and absolute discretion. —lOl- S0076 .003-11492 .FCM 031406 Each Owner shall,at a minimum,maintain his Lot and Residence in accordance with the maintenance standards established by the Declarant which are incorporated herein by reference. Section 6.Maintenance of Public Utilities.Nothing contained herein shall require or obligate the Association to maintain,replace or restore the underground facilities or public utilities which are located within easements in the Common Area owned by such public utilities.However,the Association shall take .such steps as are necessary or convenient to ensure that such facilities are properly maintained,replaced or restored by such public utilities.' Section 7.Damage and Destruction Affecting a Resi- dence —Duty to Rebuild.In the event any Residence is damaged or destroyed by fire or other casualty,it shall be the duty of the Owner of such Residence to repair or reconstruct said Residence in la manner which will restore it to its condition and appearance immediately prior in time to such damage or destruction,or as otherwise approved by the Architectural Review Committee.The Architectural Review Committee shall not approve such variance if, the finished Residence would be inharmonious or out of keeping with the overall architectural theme of the Project,or with the exterie or design of any adjacent Residences.The affected Owner shall be obligated to proceed,with all due diligence hereunder,and shall be responsible for commencing reconstruction within four (4)months after the damage-occurs,and completing such reconstruction as soon. ”as reasonably possible thereafter. Section 8.Owners’Cooperation for Maintenance.The ,Owners of Residences which are located on adjacent Lots shall cooperate with each other as is reasonably necessary to enable each Owner to properly maintain and repair his respective Residence and/or to mitigate any damage to his Residence.c .section 9..Levy of Compliance Assessments.In the event the Association shall incur any costs or expenses due to the failure of any Owner to perform his maintenance obligations as set forth herein,or in order to repair any damage to the Common.Area due to any negligent acts or omissions or willful misconduct on them part of an Owner,or any member of his family,his guests,invite- es,tenants or lessees,or their guests or invitees,the Associa- tion shall have the right,but not the duty,to cause such mainte— nance or repairs to be performed.If the Board elects to cause such maintenance_or repair work to be performed,after Notice and Hearing as provided in the By—Laws,the cost thereof shall_be assessed against said Owner as a Compliance Assessment. —102é S0076 .003 -11492‘.FCM 031406 ARTICLE XI ENVIRONMENTAL AND OTHER DISCLOSURES AND REQUIREMENTS lpsection 1.it Environmental Requirements. (a)Duties and Obligations of the Owners.To reduce and/or eliminate negative effects on the environment within the Project,all Owners and other residents of the Project shall: (1).Coordinate efforts to establish or work with established disposal programs to remove and properly dispose of toxic and hazardous waste products; (2)Not discharge toxic chemicals or hydrocar~ bon compounds such as gasoline,motor oil,antifreeze, solvents,.paints,paint thinners,wood preservatives,and other such fluids into any streets,public or private,or into storm drain or storm water conveyance systems.Use and disposal of pesticides,fungicides,herbicides,. insecticides,fertilizers and other such chemical'treat- 'ments shall meet Federal,State,County,and City re- quirements as prescribed in their respective containers. (3)Comply with all applicable BMPs and the drainage requirements of all City ordinances and stan~ dards and all National Pollution Discharge Elimination System (NPDES)requirements applicable to the Lots. ‘(b)iDuties and Obligations of the Association.- Notwithstanding anything to the contrary set forth herein,the Association shall:~ (1)Contract with a contractor to periodicallyf perform the following activities,subject to the follow- ing limitations,to minimize the pollution of storm drain water and to comply with BMP and NPDES requirements, which may include the following: 1)If applicable,maintain "NO DUMPING, DRAINS TO CREEK/CHANNEL/BAY/OCEAN"stenciling on alli on—site storm drain inlets; ii)Minimize irrigation runoff by using controllers to provide several short watering cy— cles;~' iii)Immediately correct any irrigation design or maintenance deficiencies which cause excessive runoff; -103-50076.00}-11492.FCM 031406 . -iv)Prohibit application of fertilizers within three (3)days prior to an anticipated rain; V)'Follow all fertilizer applications with light irrigation to permit fertilizer to soak into the landscaped area;and vi)Dispose of waste in accordance with applicable laws. (2)Clean out all on~site storm drains each year,once prior to October 1 (i.e.,before the rainy season)and once in January,and conduct any additional cleanings,as may be required by the City Engineer. (3)Comply with the inspection,maintenance, reporting,and other requirements of all City ordinances and standards,as well as all NPDES,Water Quality Man~ agement Plans,and BMP Guidelines requirements,that are applicable to the private on-site storm drain systems within the Common Area,including,without limitation, any and all NPDES basins,CDS units,and other filtration devices associated therewith. ARTICLE XII DAMAGE on DESTRUCTION TOTHEcommonAREA ,Section 1.Restoration of Damaged Common Area.Except as otherwise provided in Section 2 hereinbelow,damage to or de- struction of all or any portion of the Common_Area shall be handled in the following manner: (a)In the event of damage to or destruction of the Common Area,and the insurance proceeds are sufficient to effect total restoration,the.Association shall,as promptly as is practical,cause the Common Area to be repaired and reconstructed in a good workmanlike manner to its condition prior to such damage or destruction.‘ (b)If the insurance proceeds available are at least ninety percent (90%)of the estimated cost of total repair and reconstruction to the Common Area,_the Association shall,as promptly as practical,cause such Common Area to be repaired and reconstructed in a good workmanlike manner to its condition prior to the damage or destruction.Any difference between the insurance proceeds and the actual cost shall be levied by the Association as a Special Assessment against each of the Lots on an equal basis.'' -104-SO0'76.003-11492 .FCM 031406 (c)If the insurance proceeds available are less than ninety percent (90%)of the estimated cost of total repair and reconstruction to the Common Area,the Owners shall,by the written consent or vote of a majority of the Owners,determine whether: (1)To.restore the Common Area as promptly as practical to its condition prior to the damage or de- struction,and to raise the necessary funds over and above the insurance proceeds available by levying Assess~ ments against each of the Lots.Assessments shall be levied against each of the Lots on an equal basis. (2)To restore the Common Area in a way which utilizes all available proceeds and an additional amount not in excess of ten percent (10%)of the estimated cost of total reconstruction and repair to the Common Area, and which is assessable as provided above to the Lots, but which is less expensive than restoring the Common Area to its condition prior to the damage or destruction. .~Section 2. 'Election by Owners Not to Restore Damaged Common Area. (a)Notwithstanding the provisions set forth in Section 1 hereinabove,in the event sixty~seven percent (67%) of the Owners,other than Declarant,and sixty-seven percent. (67%)of the first Mortgagees (based upon one [1]vote for each first Mortgage owned)have.given their prior written approval,the Owners may not elect to rebuild or restore the Common Area and to disburse the available insurance proceeds to the general fund of the Association. (b)(In the event the Owners shall have so voted not to rebuild the Common Area,the Common Area shall be cleared and landscaped in accordance with plans approved by the City, and the cost thereof shall be paid for out of the available insurance proceeds prior to their distribution to the general fund of the Association. -(c)‘In the event the Owners shall have so voted not to rebuild the Common Area,unless the City shall agree to the contrary,it shall be the obligation of the.Association and each of the Owners to rebuild the private streets,if any, utilities and open spaces,at least to the extent said ' streets,utilities and open spaces were accepted initially by the City in lieu of payment of fees due pursuant to law. _Section 3.Retention of Excess Insurance Proceeds in General Fund.In the event any excess insurance proceeds remain .50076.00}11-‘$92 .E-‘CM 031406 after restoring the destroyed Common Area pursuant to this.Article, the Board shall retain such sums in the general fund of the ASSOCir ation. —l05~ ARTICLE XIII CONDEMNATION Section 1.Distribution of Awards -Common Area.A condemnation award affecting all or any portion of the Common Area shall be remitted to the general fund of the Association. Section 2.Board of Directors as Attornev—in~Fact. All Owners hereby appoint the Board as their special attorney-in- fact to handle the negotiations,settlements and agreements per- taining to any condemnation affecting only the Common Area. ARTICLEAXIV .COVENANT AGAINST PARTITION Section 1.Covenant Against Partition.By acceptance of a deed to a Lot,each Owner shall be deemed to covenant for himself,and for his heirs,representatives,successors and as- signs,that he will not institute legal proceedings to effect ‘ judicial partition of his interest in the Project,unless the pProject:(a)has been in existence in excess of fifty (50)years, (b)is obsolete and uneconomical,(c)the Owners of at least sixty- -seven percent (67%)of the total of all Lots in the Project join in such action for partition,and (d)sixty—seven percent (67%)of the first Mortgagees (based upon one [1]vote for each first Mortgage) owned)consent to the partition.L , ARTICLE XV INSURANCE Section 1}Reouired Insurance Coverage,The Associa- .tion,acting by and through the Board,shall obtain for the Asso- iciation and shall maintain and pay the premiums for the following insurance coverage: (a)Casualty and Fire Insurance.A policy or policies of casualty and fire insurance with extended coverage endorsement in an amount which is as close as reasonably possible (as determined by the Board)to one hundred percent (100%)of the current replacement cost (without deduction for. depreciation or co-insurance)of the Common Area (including, those portions of the Lots that the Association is obligated to maintain pursuant to this Declaration (e.g.,landscape easement areas depicted on Exhibit "A"),together with all Improvements located thereon.Said_policies shall be primary and maintained for the benefit of the Association,the Owners “and the Mortgagees,as their interests shall appear,and shall waive the right of subrogation against Owners,if reasonably -106-500'?6.O03 -114 92 .FCM 031406 obtainable.If reasonably obtainable,the deductible shall be the lesser of Ten Thousand Dollars.($l0,000)or one percent (1%)of the policy face amount.Such policy must be written by an insurance carrier that meets the requirements of FNMA and/or FHLMC,as applicable.The coverage does not need to include land,foundations,excavations,or other items_normal— ly excluded from such coverage.Such policy or policies must contain,if required and if obtainable: (1)An Agreed Amount and Inflation Guard Endorsement;- (2)Construction Code Endorsements (such as Demolition Cost Endorsement); (3))A Contingent Liability from Operation of Building Laws Endorsement;and ' _(4)Increased Construction Endorsement,if there is a construction code provision which would become operative and require changes to undamaged portions of any Improvements or the Common Area.i e .(b)Public Liability Insurance.A policy or pol- .icies of full coverage public liability insurance (with cross-’liability endorsement,if obtainable)insuring the Associ- ation,the Board,the Owners,the Declarant,and the agents and employees of each of the foregoing against any liability to the public or to any Owner,his family,invitees and/or tenants,arising from or incident to the ownership,occupa— tion,use,maintenance and/or repair of the Common Area;The limits-of liability under this Section shall be set by the Board and shall be reviewed at least annually by the Board and increased or decreased at the discretion of the Board;provid- ed,however,that said limits,unless otherwise determined by the Board and approved by 67%of the Owners,shall not be less than Three Million Dollars ($3,000,000.00)for bodily injury, including deaths of persons and property damage arising out of a single occurrence;and,provided further,that if FHLMC and/or FNMA participate in the financing of Lots in the Project,said limits shall not be less than the minimum limits required under the then current FHLMC and/or FNMA regulations. (c)Fidelity Bonds.Officers’and Directors’errors and omissions insurance,and fidelity bonds naming all persons signing checks or otherwise possessing fiscal responsibilities on behalf of the Association,including,but not limited to, officers,Directors,trustees and employees of the Associa- tion,and officers,employees and agents of any management company employed by the Association who handle or are respon~ sible for the administration of Association funds.Such coverage shall be in an amount deemed reasonably appropriate by the Association,but shall not be less than the estimated —l0'7_—SOO76.003-ll492-FCM 031405 ymaximum funds,in the custody of the Association,or twenty- five percent (25%)of the estimated annual operating_expenses of the Project,plus reserves,whichever is greater.In addi~ tion,if the Association enters into an agreement for pro- fessional management of the Project,the Association shall require such company to submit evidence of its fidelity bond coverage to the same extent as the Association's coverage.The Association shall be named as an additional obligee in the management agent's bond..‘ Section 2.Optional Insurance Coverage.The Associa- tion,acting at its option and by and through the Board,may pur- chase such additional coverage or other insurance as it may deem necessary or appropriate,or otherwise financially beneficial for’ the Owners,including,but not limited to,earthquake insurance, flood insurance,Workers’Compensation Insurance and plate glass insurance. Section 3.Notice of Cancellation of Insurance.All policies of insurance maintained by the Association pursuant to this Article shall contain a provision that coverage under said policies may not be canceled,terminated,allowed to expire by their own terms,or be substantially modified by any party without at least thirty (30)days’prior written notice to the Board and to each Owner and first Mortgagees who have filed written requests _with the Association for Such notice.A list of the Owners and such first Mortgagees shall be made available by the Association to the insurance carrier upon request.' Section 4.Review of Coverage.The Board shall annur ally determine whether the amounts and types of insurance coverage that it has obtained pursuant to this Article provide adequatei coverage for the Project,based upon the then current construction costs,insurance practices in the area in which the Project is located and all other factors which may indicate that either additional insurance coverage or increased coverage under the existing policies is necessary or desirable to protect the inter—i ests of the Association,the Owners and their respective Mortgag- ees.If the Board determines that increased coverage or additional insurance is appropriate,it shall obtain same.' Section 5.Waiver by Owners.As to all policies of insurance maintained by the Association which will not be voided or impaired thereby,each Owner hereby waives and releases all claims against the Association,the Board,the Declarant and the agents and employees of each of the foregoing,and all other Owners,with respect to any loss covered by such insurance,whether or not icaused by.the negligence of,or breach of,any agreement by said persons,but only to the extent of the insurance proceeds received in compensation for such loss. A tsection 6._Premiums,Proceeds and Settlement.Insur- ance premiums for all blanket insurance coverage and any other —lD8-rS0076.003 -11492 .FCM 031406 . insurance coverage which the Board has determined is necessary to protect the interests of the Association,the Owners and their respective Mortgagees,shall be a Common Expense to be included in the Regular Assessments levied by the-Association.All insurance proceeds paid to the Association shall be disbursed as follows:(a) in the event of any damage or destruction to the Common Area,such proceeds shall be disbursed in accordance with the provisions of the Article herein entitled "Damage or Destruction to the Common Area”;and (b)in the event of any other loss,the proceeds shall be disbursed as the Board shall deem appropriate,subject to the limitations set forth in the Article herein entitled "Mortgages Protection."The Association is hereby granted the authority to negotiate loss settlements with the appropriate insurance carriers. Any two (2)Directors may sign a loss claim form and release form in connection with the settlement of a loss claim,and such signa- tures shall be binding on the Association and its Members. Section 7.Rights and Duties of Owners to Insure. Each Owner shall obtain fire and casualty insurance on his Lot and all Improvements therein and on his personal property in amounts he deems appropriate.Nothing herein shall preclude any Owner from carrying any public liability insurance as he may deem desirable to cover his individual liability for damage to person or property’ occurring inside his individual Lot or elsewhere upon the Project. Each Owner hereby acknowledges and agrees that,except as expressly provided herein,the Association does not maintain.any property or liability insurance for an Owner's Lot.If obtainable,any liabili- ty insurance coverage carried by an Owner shall contain a waiver off subrogation of claims against the Declarant,the Association,the Board,their agents and employees,and all other Owners.Such other policies shall not adversely affect or diminish any liability under insurance obtained by the Association.If any loss intended to be covered by insurance carried by the Association shall occur and the proceeds payable thereunder shall be reduced by reason of inshrance ,carried by any Owner,such Owner shall assign the proceeds of such insurance carried by him to the Association to the extent of such reduction for application by the Board to the same purposes as the reduced proceeds are to be applied.'A Section 8.Trustee-for Policies;The Association is hereby appointed and shall be deemed trustee for the interests of all insureds under the policies of insurance maintained by thee Association.All insurance proceeds under such policies shall be paid to the Board,as trustees,and the Board shall have full power to receive such funds on behalf of the Association,the Owners and their respective Mortgagees,and to deal therewith as provided for in this Declaration.- Section 9.Mortqaqe Clause.All insurance policies should have the "standard mortgage clause,"or equivalent endorse— ment,providing that coverage of a Mortgages under the insurance policy will not be adversely affected or diminished by an act or neglect of the Mortgagor,which is commonly accepted by private Jx. ..lQ9_5rJo75.oo3-‘11492.FcM 031406 institutional mortgage investors in the area in which the Project is located,unless such coverage is prohibited by applicable law. Mortgages owned by FNMA must name as a Mortgages either FNMA or the servicers for the Mortgages held by FNMA encumbering the Residenc- es.when a servicer is named as the Mortgagee,its name should be followed by the phrase "its successors and assigns."If the Mort-' gage is owned in whole by FHLMC,the name of the servicer of the Mortgage followed by the phrase "its successors and assigns, beneficiary"should be named as Mortgagee instead of FHLMC.The mortgage clause should be endorsed to fully protect FHLMC's inter» ests or the interest of FHLMC and the servicer where applicable.If FHLMC must be named as Mortgages,the endorsement should show the servicer’s address in lieu of FHLMC’s address..A mortgage clause in favor of Mortgagees holding Mortgages on Residences is not required on a policy insuring the Common Area. Section 10._Compliance With Requirements of FHLMC, FNMA,and VA/FHA.Notwithstanding the provisions of this Article, the Association shall obtain and maintain in effect such policies of insurance meeting all requirements of FHLMC,-FNMA,and VA/FHA (if applicable)established by those entities for planned develop- ment for so long as any of such agencies continue to be a Mortgag- ee,Owner,insurer or guarantor of a Mortgage in the Project, except to the extent such coverage is not available or has been waived,in writing,by such agencies. Section 11.Required Waiver.All policies of hazard and physical damage insurance may provide,only if available at a reasonable cost to the Association as determined by the Board,in .its sole discretion,for waiver of the following rights,to the extent that the respective insurers would have the rights without such waivers:' (a)Any defense based on co-insurance;- (b)Any right of set—off,counterclaim,apportion- ment,proration or contribution by reason of other insurance not carried by the Association; (C)Any invalidity,other adverse effect or defense on account of any breach of warranty or condition caused by the Association,any Owner or any tenant of any Owner,or arising from any act,neglect or omission of any named in- sured,or the respective agents,contractors and employees of any insured; (a)If applicable,any right of the insurer to repair,rebuild or replace,and,in the event the Residence is not repaired,rebuilt or replaced following loss,any right to pay under the insurance an amount less than the replacement value of the improvements insured or the fair market value thereof;- -110-,S0O'?6.DD3-‘l1492.FCM 031406 - (e)If applicable,notice of the assignment of any Owner of its interest in the insurance by virtue of a convey- ance of any Lot;and A A A A - (f)Any right to require any assignment of any Mortgage to the insurer. Section 12.Annual Notification of Insurance.The Association shall,upon issuance or renewal of insurance,but not less than annually,notify its Members as to the amount and type of insurance carried by the Association,and it shall accompany this notification with statements to the effect that the Association is or is not insured to the levels specified by this Article,and that if not so insured,Owners may be individually liable for the entire amount of a judgment,and if the Association is insured to the levels specified in Section 1 above,then Owners may be individual- ly liable only for their proportional share of Assessments levied to pay the amount of any judgment which exceeds the limits of the Association's insurance.The Association shall further prepare and distribute to all its Members a summary of the Association’s insurance coverage pursuant to Section 1365 of the California Civil Code,as same may be amended from time to time. ARTICLE XVI MORTGAGEE PROTECTION - Section 1.Mortqaoee Protection Provisions.Notwith- standing any other provisions in this Declaration to the contrary, in order to induce FHLMC and FNMA,and other lenders and investors, to participate in the financing of the sale of Lots in the Project, the following provisions contained within this Article are added hereto,and to the extent these added provisions conflict with any other provisions in this Declaration,these added provisions shall lcontrol.This Declaration,the.Articles and the By—Laws for the Association are hereinafter collectively referred to in this Article as the "constituent documents."A A if A (a)The right of an Owner to sell,transfer or otherwise convey his or her Lot shall not be subject to any right of first refusal or any similar restriction in favor of the Association; (b)The lien of the Assessments provided for herein, shall be subordinate to the lien of any first Mortgage now or hereafter recorded upon any Lot.The sale or transfer of any - Lot shall not affect the Assessment lien;however,the sale or transfer of any Lot pursuant to judicial or nonjudicial foreclosure of a first Mortgage or pursuant to any remedies provided for in the Mortgage shall extinguish the lien of such Assessments as to payments which became due prior thereto.No sale or transfer shall relieve such_Lot from liability for -111-SOO'76-003-11492 .FCM 031406 .Assessments due thereafter.Any first Mortgages who obtains title to,a Lot pursuant to the remedies provided in the Mortgage,or foreclosure of the Mortgage,or any purchaser at a foreclosure sale of a first Mortgage will not be liable for unpaid Assessments or charges which accrue prior to the ac- quisition of title to such Lot by the Mortgages (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); -(c)Except as provided by statute in case of con- demnation or substantial loss'to the Lots and/or Common Area, unless sixty—seven percent (67%)of the,Owners other than Declarant,or sixty-seven percent (67%)of the first Mortgag~ ees (based upon one [1]vote for each Lot encumbered by said Mortgagee’s first Mortgage)have given their prior written approval,neither the Association nor the Owners shall be entitled to: (1) Change the method of determining the obligations,Assessments,dues or other charges which may .be levied against an Owner’s Lot; (2)By act or omission seek to abandon,parti- tion,subdivide,encumber,sell or transfer all or any portion of the Common Area.The granting of easements for public utilities or for other purposes consistent with- the intended uses of the Common Area or the residential, nature of the Project,shall not be deemed a transfer within the meaning of this clause; (3)Use hazard insurance proceeds for losses to the Common Area for other than repair,replacement or reconstruction;= (4)Effect any decision of the.Association to_ terminate professional management and assume self-manage- _ment of the Project,where such professional management was previously a requirement by a holder,insurer or guarantor of any first Mortgage;A ,(5)By act or omission,change,waive or abandon any provisions of this Declaration,or enforce- ment thereof,pertaining to architectural design of the Residences situated on a Lot or the maintenance and operation of the Common Area within the Project,includ~ ing,without limitation,fences and landscaping within, the Project;' (6)Fail to maintain fire and extended cov— ,erage on the insurable Common Area on a current.replace— ment cost basis_in an amount not less than one hundred percent (100%)of the insurable value thereof;and soo7a.oo3'-11=192.1-‘Cr-1 031405 ""112" (7)Abandon or terminate the Association, except for abandonment,partition or termination as may be provided by law. i(d)a All taxes,Assessments and charges which may become liens prior to the first Mortgage under local law shall relate only to individual Lots,and not to the Project as a whole;, .(e)No provision of the constituent documents shall be interpreted to give any Owner or any other party priority over any rights of the first Mortgages in the case of a distribution to such Owner of insurance proceeds or condemna- tion awards for losses to or a taking of all or any portion of the Common Area or such Owner's Lot;‘ L (f)The Assessments provided for in the constituent documents shall include an adequate reserve fund for maintee nance,repairs and replacement of those elements of the Common Area that must be replaced onya periodic basis,and shall be payable in regular installments,rather than by Special Assessments;~ (g)Each holder,insurer or guarantor oféa first T Mortgage who has filed with the Association a written request yfor notice shall be entitled to timely written notice of: (1)Any condemnation or eminent domain pro— ceeding,and any loss or taking resulting from such proceeding which affects the Project,or any portion thereof; (2)Any substantial damage or destruction to the Project,or any portion thereof,when such loss exceeds Ten Thousand Dollars ($10,000.00);' (3)Any default in the performance by an indi—r vidual Owner of any obligation under the constituent documents which is not cured within sixty (60)days after the Association learns of such.default,which notice shall state the length of time which such Owner has been delinquent;P .-0 ,(4)Any lapse,cancellation or material modi+ fication of any insurance policy or fidelity bond main- tained by the Association;‘ (5)Any abandonment or termination of the Project;and 0 (6)Any proposed action that requires the consent of a specified percentage of eligible Mortgagees. 50076.0fJ3-l1492.FCM 031406 '-1]-3— 50076-003-11492 .F'.CM 031406 (h)Any agreement for professional management oftheProject,or any contract providing for services of the Declarant,may not exceed one (1)year,renewable by agreement of the.parties for successive one (1)year periods.Any such agreement must provide for termination by either party with or without cause and without payment of a termination fee on thirty (30)days”or ninety (90)days’-or less,respectively, prior written notice;’' (i)i First Mortgagees of Lots may,jointly or singly,pay taxes or other charges which are in default and which may have become a lien on the Common.Area,and may pays overdue premiums on hazard insurance policies or secure new hazard insurance coverage on the lapse of a policy for the Common Area,and first Mortgagees making such payments shall be owed immediate reimbursement therefor from the.Association. Upon demand by any first Mortgages,the Board shall execute, on behalf of the Association,an agreement establishing the right of all first Mortgagees to such reimbursement; (j)A first Mortgages of a Lot in the Froject will, upon request,be entitled to:- (1)Examine the books and records of the Association during normal business hours; (2)An audited financial statement from the Association for the previous fiscal year (without expense to the holder,insurer or guarantor requesting said ' statement),however,if an audited financial statement is not available and until such time as the Project contains fifty (50)Lots,any Mortgage holder may be allowed to have an audited financial statement prepared,at its own expense;and -.‘. (3)'Receive written notice of all meetings of Athe Association and be permitted to designate a represen- tative to attend all such meetings.' (k)Each Owner shall notify the.Association in writing within ten (10)days after the close of escrow for the purchase of his Lot of the name and address of his first‘ Mortgages,and thereafter,each Owner shall promptly notify the Association of any changes of name or address for his first Mortgages;A ‘A (1)If any pot (or portion thereof)or the Common Area (or portion thereof)is made the subject matter of any ,condemnation or eminent domain proceeding,or is otherwise sought to be acquired by a condemning authoritY.then the institutional holder of any first Mortgage on such Lot will be entitled to timely written notice of any such proceeding or proposed acquisition;and v A ...]_]'_4-.... (m)asubject to the provisions set forth herein,in the event any portion of the Common.Area encroaches upon any Lot or any Lot encroaches upon the Common Area as a result of the construction,reconstruction,repair by Declarant,or shifting,settlement or movement of any portion of the Pro- ject,a valid easement for the encroachment and for the maintenance of the same shall exist so long as the encroach- ment exists.C ' Section 2.Violation of Mortgages Protection Provi- sions.No breach of any of the foregoing Protective Covenants shall cause any forfeiture of title or reversion or bestow any right of re—entry whatsoever,but in the event that any one or more of these Protective Covenants shall be violated,the Declarant,its succes- sors and assigns,the Association,or any Owner in the Project may- commence a legal action in any court of competent jurisdiction to enjoin or abate said violation and/or to recover damages;provided, however,that any such violation shall not defeat or render invalid the lien of any Mortgage or deed of trust made in good faith and for value.Said Protective Covenants shall be binding upon and effective against any Owner whose title is acquired by foreclosure, trustee sale or otherwise. Section 3.Amendments to Conform With Mortqaqee Re+ quirements.It is the intent of Declarant that this Declaration and the Articles and By~Laws of the Association,and the Project in general,meet all requirements necessary to purchase,guarantee, ‘insure or subsidize any Mortgage of a Lot in the Project by the, FHLMC and the FNMA.In furtherance of said intent,Declarant may amend this Declaration without the consent of the Members at any time after the close of escrow for the first sale of a Lot in the Project by recording a written instrument setting forth the amend- ment,provided that the amendment is necessary to cause this Declaration to comply with the requirements of the DRE,VA/FHA (if applicable),FHLMC,FNMA,and/or GNMA;providedg however,that any such amendment shall be effective only if Declarant mails a copy of the amendment to all of the foregoing entities which are,or have agreed to be,a holder,insurer or guarantor of a first Mortgage, and does not,within thirty (30)days thereafter,receive a notice of disapproval from any such entity.Said amendments shall not be recorded by Declarant until after the expiration of such thirty C i(3U)day period. ARTICLE xvi: I ENFORCEMENT OF BONDED OBLIGATIONS Section 1.Enforcement of Bonded Obligations.In the event_that the improvements of the Common Area have not been com- pleted prior to the first close of escrow for a Lot following the issuance of a Final Subdivision Public Report by the DRE,and the Association is the obliges under a bond or other arrangement {hereinafter referred to as the "Bond")to secure a performance of -115-50076 .003-11492 .1‘-‘CM 031406 the commitment of Declarant to complete such improvements,the following provisions shall apply:I (a)The Board shall consider and vote on the question of action by the Association to enforce the obliga- tions under the Bond with respect to any improvements for which a Notice of Completion has not been filed within sixty (60)days after the completion date specified for such im- provements in the Planned Construction Statement appended to the Bond.If the Association has given an extension in writing for the completion of any Common Area improvement,the Board shall consider and vote on the aforesaid question if a Notice of Completion has not been filed within thirty (30)days after- the expiration of such extension. (b)In the event that the Board determines not to initiate action to_enforce the obligations under the Bond,or in the event the Board fails to consider and vote on such question as provided above,the Board shall call a special meeting of the Members for the purpose of voting to override such decision or such failure to act by the Board.Such ,meeting shall be called according to the provisions of the By- Laws dealing with meetings of the Members,but in any event, such meeting shall be held not less than thirty~five (35)days nor more than forty—five (45)days after receipt by the Board of a_petition for such meeting signed by Members representing five percent (5%)of the total voting power of the Associa- tion.P I‘ {c)The only Members entitled to vote at such meeting of Members shall be the Owners,other than Declarant. A.vote at such meeting of a majority.of the voting power of such Members,other than the Declarant,to-take action to enforce the obligations.under the Bond shall be deemed to be the decision of the Association,and the Board shall thereaf- ter implement such decision by initiating and pursuing approfi priate action in the name of the Association.A ARTICLE XVIII" ANNEXATION OF ADDITIONAL PROPERTY ‘L Additional property may be annexed to and become subject to this Declaration as set forth in this Article.I Section 1.Development of the Project.The Declarant -intends to sequentially develop the Annexation Property on a phased. basis;however,Declarant may elect not to develop all or any portions of said Annexation Property,to annex such portions of the Annexation Property in Phases of any size or to develop more than one (1)Phase in any order and at any given time,subject to the provisions of this Article.. -116-50076.003-11492-FCM (331406 Section 2.Annexation Pursuant to General Plan of Development.Declarant may,subject_to the provisions of this Article,annex all or any.portions of the Annexation Property, thereby making such Annexation Property subject to this Declaration and to the jurisdiction of the Association,without the vote or written assent of the Association or its Members,provided and on condition that:‘"~ (a)iAny annexation pursuant to this Section shall be allowed when the proposed annexation is in substantial conformance with the overall general plan of phased develop- ment for the Project originally submitted to and approved by the DRE and VA/FHA {if applicable)with the Project’s first Final Subdivision Public Report application,or as subsequent- ly approved by the DRE;and »(b)A Notice of Annexation,as described in Section 4 of this Article,shall be recorded covering the designated portions of the Annexation Property. y Section 3.Annexation Pursuant to Approval.Except as otherwise allowed pursuant to Section 2 above,upon obtaining the approval in writing of the Association pursuant to the vote or written assent of sixty-seven percent (67%)of the total voting power of Association Members,the owner of-any property who desires to annex said property to the scheme of this Declaration and to subject it to the jurisdiction of the Association may file of record a Notice of Annexation,as described in Section 4 of this Article. Section 4.Notice of Annexation.The annexation of additional property authorized under this Article shall be made in filing of record a Notice of Annexation,or similar instrument, covering said additional property,and the Notice of Annexation shall expressly provide that the scheme of this Declaration shall extend to such additional property.The Notice of Annexation may contain such complementary additions to and modifications of the Protective Covenants set forth in this Declaration which are neces- sary to reflect the different character,if any,of the annexed property,including,but not limited to,marketing and selling vacant Lots,the architectural guidelines for any construction thereon,maintenance responsibilities between the Association and ithe Owners in this annexed property and payment of Assessments,and, which are fair,reasonable,and appropriate,and are not inconsis- tent_with the general scheme of this Declaration.Except as set forth in this Section,no Notice of Annexation shall add,delete, revoke,modify or otherwise alter the Protective Covenants set forth in this Declaration.* Section 5.Effective Date of Annexation.Any Notice of Annexation recorded on a subsequent Phase of the Project shall become effective immediately upon the first close of an escrow for -117-SO076.DO3-11492 .FCM 031406 the sale of a Lot in said Phase,as evidenced by the recordation of the first instrument of conveyance for said Lot. Section 6.Right of De~Annexation.Declarant hereby reserves the right to delete all or any portions of the Annexation Property which may be annexed to the Project pursuant to this Declaration,and to delete said property from the scheme of this Declaration and from the jurisdiction of the Association,provided and on condition that (i)the de~annexation shall be made prior to the first close of an escrow-for the sale of a Residence in the property to be de—annexed,(2)the deeannexation is recorded in the, same manner as the applicable Notice of Annexation,(3)the Declar- ant has not exercised any vote with respect to any Residence in such property,(4)no Assessments have commenced on any portion of the property subject to the de—annexation,(5)the de-annexation was approved by the City;and (6)a draft of the revocation of Notice of Annexation has been submitted to and approved by the VA/FHA,if applicable. Section 7.Amendments to Notice of.Annexation.Not- withstanding any other provisions in this Declaration to the con- trary,a Notice of Annexation may be amended by the requisite 1 affirmative vote of Members (and first Mortgagees,if applicable), as set forth in the Article herein entitled "General Provisions," in only the annexed property described in said Notice of Annex- ation,rather than all Members (and first Mortgagees,if applica- ble)in the Project,on the following conditions:i W (a)Such amendment applies only to the annexed property described in said Notice of Annexation;and (b)Such amendment shall in no way contradict, revoke or otherwise alter any of the Protective Covenants set forth in this Declaration. Section 8.-(Parties to Notice of Annexation.For so long as Declarant has the right to annex all or any portion of the Annexation Property into the Project,each Notice of Annexation covering property owned by Declarant shall be executed only by y Declarant.Declarant?s execution of any Notice of Annexation shall— evidence Declarant's consent thereto.' -118-50076.003-11492 .PCM 031406 ARTICLE XIX GENERAL PROVISIONS ,,Section 1.Declarant’s Representative.Commencing on the date on which Declarant no longer has an elected representative on the Board,and continuing until the date that is ten (10)years after the date of the last close of escrow in the Project,the 'Declarant shall be entitled to have a representative {"Declarant’s Representative")present at all meetings of the Members and the Board.For so long as Declarant’s Representative is entitled to attend such meetings,the Association and/or Members,as appropri— ate,shall provide Declarant with written notice of all meetings of the Board as if Declarant were an Owner/Member,and the Association shall provide Declarant’s Representative with the minutes for the meetings of Owners,the Board and committees,The Declarantis Representative shall be present in an advisory capacity only and shall not be a Board member or have_any right to vote on matters coming before the Board or any liability as-a Board member..This Section may not be amended without the prior written approval of the Declarant,which approval may be withheld in Declarant’s sole and absolute discretion. \ Section 2.Enforcement. ’i(a)The Association or the Owner of any Lot in the Project,including the Declarant,shall have the right (but not the duty or obligation)to enforce,by proceedings at law, or in equity,all of the Protective Covenants now or hereafter imposed by this Declaration and the By—Laws,respectively (and .the Rules and Regulations duly adopted by the Association}, including,without limitation,the right to record a notice of, noncompliance or violation,to prosecute a proceeding at law or in equity against the person or persons who have violated, or are attempting to violate,any of said Protective Cove- nants,to enjoin or prevent them from doing so,to cause said violation to be remedied and/or to recover damages for said violation;provided,however,that with respect to Assessment liens,the Association shall have the exclusive right to the enforcement thereof. ' (b)The result of every act or omission whereby any ofythe Protective Covenants contained in this Declaration or the provisions of the By~Laws are violated,in whole or in part,is hereby declared to be and constitutes a nuisance,and -every remedy allowed by law or equity against a nuisance shall be applicable against every such result and may be exercised by any Owner,by the Association,or by their successors in interest.~'-' (c)The remedies herein provided for breach of the_ Protective Covenants contained in this Declaration or the -119-50076.003-11492 .FCM 031405 provisions of the By-Laws shall be deemed cumulative,and none of such remedies shall be deemed exclusive. (d)The failure of the Association or any Owner to enforce any of the Protective Covenants contained in this Declaration or the provisions of the By—Laws shall not consti- tute a waiver of the right to enforce the same thereafter. (e)Prior to filing a civil action by either the L Association or by an Owner solely for declaratory relief or injunctive relief,or for declaratory relief or injunctive relief in conjunction with a claim for monetary damages other than Association Assessments,related to the enforcement of the Association governing documents,the parties may be required to comply with the provisions set forth herein and Civil Code Section 1369.510 et seg.,if applicable.Failure to comply with the prefiling requirements of Section 1369.510 et seq.of the Civil Code may result in the loss of the right to sue regarding enforcement of the Association governing documents.,Upon motion by any party for attorneys’fees and costs as the prevailing party,the court,in determining the qamount of the award,may consider a party’s refusal to partic¥ ipate in alternative dispute resolution prior to the filing of the action and other provisions set forth herein. (f)A breach of the Protective Covenants contained in this Declaration or of the provisions of the By~Laws shall not affect or impair the lien or charge of any bona fide Mort- gage or deed of trust made in good faith and for value on any Lot;provided,however,that any subsequent Owner of such property shall be bound by said Protective Covenants,whether or not such Owner's title was acquired by foreclosure,a trus~ tee's sale or otherwise..A t ' (g)The Board,for and on behalf of the Associa— tion,may assess monetary penalties against an Owner as a1ComplianceAssessmentand/or temporarily suspend said Owner's voting rights for the period during which any Assessment against said Owner's-Lot remains unpaid;provided,however, the requirements for Notice and Hearing set forth in the By- 'Laws shall be followed with respect to the accused Owner before a decision to impose discipline is reached. (h)The Board,for and on behalf of the Associa- tion,may,after Notice and Hearing,temporarily suspend an Owner's voting rights for a period not to exceed thirty (30) ,days for any infraction of the Association's published Rules_ and Regulations;provided,however,the requirements for Notice and Hearing set forth in the By~Laws shall be followed with respect to the accused Owner before a decision to impose discipline is reached. -120-SO076.003-11492.FCM 031405 i y (i)In addition to the above general rights of enforcement,the City and any other governmental entity with appropriate jurisdiction shall have the right,through its agents and employees,-to enter upon any part of the Project for the purpose of enforcing all applicable codes and/or local) .ordinances,including,but not limited to,the California Vehicle Code,and is hereby granted an easement over the Project for such purpose.A Section 3.Severabilitv.Invalidation of any one of (these Protective Covenants by judgment or court order shall in no way affect any other provisions hereof,which shall remain_in full force and effect.A Section 4.Term.The Protective Covenants set forth ‘in this Declaration shall run with and bind the Project,and shall inure to the benefit of the Association and be enforceable by the Board or the Owner of any land subject to this Declaration,their respective legal representatives,heirs,successors and assigns, for a term of sixty (60)years from the date this Declaration is recorded,after which time said Protective Covenants shall be automatically extended for successive periods of ten (10)years, unless an instrument,signed by a majority of the then Owners agreeing to terminate said Protective Covenants,in whole or in part,has been recorded within one (1)year prior to the termina- tion of the initial sixty (60)year term,or within one (1)year prior to the termination of any successive ten (10)year period. Section 5.Construction.The provisions of this Dec- ,laration shall be liberally construed to effectuate its purpose of creating a uniform plan for the development and maintenance of the Project.The Article and Section headings have been inserted for convenience only and shall not be considered or referred to in resolving questions of interpretation or construction. Section 6-Singular Includes Plural.Whenever the context of this Declaration may so require,the singular shall in- clude the plural,and the masculine shall include the feminine and neuter. Section 7."Amendments. (a)Amendments by Declarant.Prior to the sale of a Lot to a member of the public,in accordance with a Final Subdivision Public Report issued by the DRE,this Declaration may be amended,restated or terminated by an instrument _’ executed by Declarant.Notwithstanding any other provisions of this Declaration,for so long as Declarant owns any portion of Tract 32070,Declarant may unilaterally amend this Declaration to:(i)conform this Declaration to the requirements of VA, DRE,FNMA,FHLMC,GNMA,the County,City or any other govern- mental agency or entity applicable to the project;(ii)amend or supplement any of the exhibits to this Declaration;(iii) ~l2l~500'7E~-003-11492 .FCM 031406 comply with any City,County,State or Federal laws or regula~ tions;(iv)correct typographical or inadvertent errors in the Declaration and/or Exhibits attached thereto;(v)record maintenance requirements and schedules for any Improvements on the Lots and/or Common Area;and (vi)supplement this Declara- tion with provisions which pertain to the rights and obliga- tions of Declarant,the Association and for Owners arising .under Division 2,Part 2,Title 7 (commencing with Section 895)of«the California Civil Code. i (b)Amendments by Association.Except as otherwise provided herein and all applicable provisions of law (e.g., the provisions of California Civil Code Section 1363.03 _regarding secret ballots),this Declaration may be amended only by an affirmative vote of Owners representing not less than sixty~seven percent (67%)of the Class A voting power and the Class B voting power of the Association.At such time when the Class B membership shall cease and be converted to Class A membership,any and all amendments to this Declaration shall be enacted by requiring the vote or written assent of Owners representing both:(a)sixty-seven percent (67%)of the total (voting power of the Association,and (b)sixty-seven percent (67%)of the votes of Members,other than the Declarant;3 provided,however,that the percentage of the voting power necessary to amend a specific provision shall not be less than, the percentage of affirmative votes prescribed for action to be taken under said provision,and no amendment of a provision of this Declaration which requires the approval or consent of Declarant may be made without the written approval of Declar- ant (e.g.,provisions pertaining to the resolution of Dis- ~putes,Maintenance Guidelines,Maintenance Manual,Maintenance_ Recommendations,etc,).Any Owner or the Association maybe petition the Superior Court of the County where the Project is located for an order reducing the necessary percentage re—- quired under this Section to amend this Declaration;provided,i however,that under no circumstances shall any provision (requiring the consent of the Declarant be amended without suchpiAconsent.The procedure for effecting this petition is set forth in Section 1356 of the California Civil Code,as the same may be amended,from time to time. .,(c)Approval of Mortqaqees._In addition to the)C rights of first Mortgagees,as set forth in the Article herein —entitled "Mortgages Protection,fl in the event that FNMA participates in the financing of Lots in the Project,the written consent of not less than fifty—one percent (51%)of the first Mortgagees shall be required for any amendment of a "material?nature.An amendment which affects or purports to affect any of the following is considered material: A (1).The legal status of the Project as a planned development;.(i ' \-- -122-500?6.D03—11492.PCM 031405 (2)Voting rights; (3)Increases in Assessments that raise the previously assessed amount by more than twenty-five percent (25%),.assessment liens or the priority of as- sessment liens,including the levy and collection there- of,enforcement provisions for nonpayment and subordina- tion of liens for nonpayment;A (4)Reduction in reserves for maintenance, repair and replacement of Common Area; (5)Responsibility for Common Area maintenance and repair;. -(6)Reallocation of interests in the Common Area or rights to use the Common Area; (7)Boundaries of any Lot; (8)Convertibility of Common Area into Lots 0 Lots into Common Area;A (9)Expansion or contraction of the Project, or addition,annexation or de-annexation of additional property to or from the Project; (10)Insurance or fidelity bonds requirements; (11)Restrictions on the leasing of Lots; (12)Restrictions on alienation,including,but not limited to,rights of first refiusal;A (13)Any decision by the Association to es—%tablish self-management,if professional management was previously required by an eligible first Mortgagee or legal documents governing the Project;a p (14)Restoration or repair of the Project in a manner other than as specified in this Declaration;c _(15)Any action to terminate the legal status of the Project after substantial destruction or condem- nation occurs;and (16)Mortgagee protection provisions as set forth in that Article hereinabove entitled "Mortgages Protection,"and such other provisions in this Declara- tion for which the consent of Mortgagees shall be re- quired or which are expressly for the benefit of Mort- gagees,insurers or guarantors of Mortgages. 50076.00:-11492.FcM 031406 . A "123" In the event the Association is considering termination of the, legal status of the Project for reasons other than the sub- stantial destruction or condemnation of the Project,then sixty-seven percent (67%)of the first Mortgagees must agree to said termination.Notwithstanding the foregoing,in the event any first Mortgages receives a written request,de- livered by certified or registered mail with return receipt- requested,from the Board to approve any amendment-to this Declaration,and such first Mortgages does not deliver a negative response in writing to the Board within thirty (30) days of the mailing of such request by the Board,such first Mortgages shall be deemed to have approved such proposed) amendment. (d)-Approval by City.Notwithstanding any other provisions of this Article,no amendment of a provision affecting the rights of the City (including,without limita- tion,any amendment which would result in the Association or any Owner relinquishing its obligation to maintain the Common t 'Area),and no action by Declarant or the Association terminat- ing this Declaration or de-annexing property from the juris- diction of the Association shall be effective without the prior written consent of the City.The Declarant or the Association shall forward,or cause to be forwarded,to the City a written notice of any proposed amendment or termina- tion.Notwithstanding the foregoing,in the event the City receives a written request,delivered by certified or regis- tered mail with return receipt requested,from the Board to approve any proposed amendment to this Declaration,and the City does not deliver a negative response in writing to the Board within thirty (30)days of the mailing of such request by the Board,the City shall be deemed to have approved such proposed amendment.The Declarant or the Association shall transmit a copy of the final approved amendment to the City within thirty (30)days after the final approved amendment becomes effective.- A (e)Recordation of Amendments.An amendment made in accordance with the provisions set forth hereinabove shall be effective when executed by the President and Secretary of the Association,who shall certify that the amendment has been approved by the membership and,where appropriate,by the first Mortgagees,in the percentages set forth hereinabove, and recorded in the Office of the County Recorder.Upon such recordation,the amendment shall be effective and binding upon all Owners and all Mortgagees,regardless of whether such Owner or such Mortgages consented to such amendment. Section 8.Encroachments.None of the rights and ob- ligations of the Owners created herein or by the deed shall be al- tered in any way by encroachments due to settlement or shifting of structures or any other cause.There shall be valid easements for the maintenance of said encroachments so long as they shall exist; -124-50076 .003-11492 .FCM 031406 provided,however,that in no event shall a valid easement for encroachment be created in favor of an Owner if said encroachment occurred due to the willful conduct of said Owner.A Section 9.‘Notices.Any notice permitted or required to be delivered as provided herein shall be in writing and may be delivered either personally or by mail.If delivery is made by first class,registered or certified 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,ad- dressed to any person at the address given by such person to the A Association for the purpose of service of such notice,or to the Lot of such person if no address has been given to the Association. If such notice is not sent by first class;registered or certified mail,it shall be deemed to have been delivered when received.Such address may be changed,from time to time,by notice in writing to the Association. Section 10.Attorneys’Fees.If any Owner defaults in making a payment of Assessments or in the performance or observance of any provision of this Declaration,and the Association and/or an Owner has obtained the services of an attorney in connection there- with,the Owner covenants and agrees to pay any costs or fees incurred,including reasonable attorneys’fees,regardless of whether legal proceedings are instituted.Except as may otherwise be stated in the Alternative Dispute Resolution Provisions set forth herein,in the event a suit,arbitration,or alternative dispute resolution is instituted,the prevailing party shall recover the cost of the suit,arbitration,or alternative dispute resolution,in addition to the aforesaid costs and fees. .Section 11.Mergers or Consolidations.Upon a merger or consolidation of the_Association with another association,the Association's properties,rights and obligations may,by operation of law,be transferred to another surviving or consolidated associ- ation or,alternatively,the properties,rights and obligations of. another association may,by operation of law,be added to the properties,rights and obligations of the Association as a survive ing corporation pursuant to a merger.-The surviving or consolidat~ ed association may administer and enforce the Protective Covenants established by this Declaration governing the Project,together with the covenants and restrictions established upon any other property as one plan. Section 12.No Representations or Warranties.No representations or warranties of any kind,express or implied,have been given or made by Declarant,or its agents or employees,in connection with the Project,or any portion thereof,its physical condition,zoning,compliance with applicable laws,fitness for intended use,or in connection with the subdivision,sale,opera5 tion,maintenance,cost of maintenance,taxes or regulation thereof as a planned development,except as specifically and expressly set "125-S0O76 .O03-11492 .1-"CM 031406 ' forth in this Declaration,and except as may be filed by Declarant, from time to time,with the DRE. ,Section 13.,Project Disclosures. (a)Conditions of Approval.The Project is subject to all terms and conditions set forth in the City's conditions yfor the approval of the tentative tract map for,and the development of,the Project.Neither this Declaration-nor any contract of sale,lease,or other written document or any means or method shall be established,or shall attempt to establish,any requirement,restriction,or limitation on the Declarant,or any person,individual or entity,which would operate,directly or indirectly,to prevent or preclude any other developers of the Property or Project,or any person, individual,or entity,in complying with all applicable provisions of the tentative map approved by the City and other City ordinances,rules,policies,or regulations. (b)NOTICE OF AIRPORT IN VICINITY.This Project may be presently located in the vicinity of an airport {e.g., Bermuda Dunes Airport),within what is known as an airport influence area (i.e.,an area in which current or future airport—related noise,overflight,safety,or airspace protec- tion factors may significantly affect land uses or necessitate restrictions on those uses as determined by an airport land use commission).For that reason,the Project may be subject to some of the annoyances or inconveniences associated with proximity to airport operations (for example:noise,vibra- tion,or odors).Individual sensitivities to those annoyances can vary from person to person.Each Owner may wish to,and should consider what airport annoyances,if any,are associat- ed with the Project before an Owner completes the purchase and’determine whether such a location and airport annoyances are acceptable. (c)Electrical Power Lines.Underground and/or‘ overhead electric transmission and distribution lines may be located within and in the immediate vicinity of the Project. Numerous scientific and epidemiological studies have been con- _ducted as to whether there are any adverse health effects from magnetic and electric fields generated by electric power j lines.Further information of this subject is available from _the Electric and Magnetic Fields Program,California Depart~ -ment of_Health Services,2151 Berkeley Way,Annex 10,Berke- ley,California._ (d)Highly Travelled Streets.The Project is located in the vicinity of heavily travelled streets.Owners and other residents of the Project may experience,among other things,visual blight,noise,odors,fumes,dust,smoke,air .pollution,bright lights,vibrations,wind,and traffic congestion in connection with the use and maintenance of the —l26~50076 .003 -11492 ..‘E'CM 031406 streets.The regional,local arterial road system Improvements are subject to modifications,approvals,and determinations made by the applicable governmental authorities.For example, _alignments may be changed,proposed extensions may be deleted or changed and roadway Improvements within the vicinity of the Project may be added. {e)Abandoned Water Well.Each Owner acknowledges and understands that on or more water wells may have been previously located at the Project site.If applicable,the well(s)have been or will be abandoned in accordance with governmental agency requirements. (f)Underground Detention Basins.Underground detention basins are located within the Project as part of the storm drain system.1 . (g)Golf Course Clubhouse/Driving Range.Buyer understands and acknowledges that the Project is located in proximity to a golf course clubhouse and driving range.Buyer may experience noise,light and other forms of disturbances arising from the use of the golf course clubhouse,driving range and parking lot,and other adverse impacts relating to the clubhouse and driving range.I I (h)Waiver.Each Owner,for and on behalf of himself and the members of his family,his tenants,lessees, guests and invitees,expressly approves all of the foregoing conditions and risks,and waives all causes of action and covenants not to sue the City,the Declarant,and their respective directors,officers,members,employees,agents and‘ consultants for any damages or injuries which may arise from or relate to any of such conditions and/or risks; ‘Section 14.Davis¥Stirlinq Act.Notwithstanding thee provisions set forth in this Declaration,various laws (including, ‘but not limited to,the Davis~Stirling Common Interest Development Act,Sections 1350,e;§§g.,of the California Civil Code,and the Federal Fair Housing Act,Title 42 United States Code,Sections 3601,gt §§g.,as such laws may be amended,from time to time),may supplement or override the provisions of this Declaration.This Declaration shall be interpreted and construed to-be consistent with such applicable laws,as same may be amended,from time to time,and,accordingly,Declarant makes no representations or warranties regarding the future enforceability of the provisions of this Declaration. Section 15.Conflicts in Management Documents For the Project.In the event of any conflict between and/or among the provisions of any of themanagement documents for the Project,the Declaration shall be deemed to supersede the provisions of any -127-SE1076 .003 -11492 .FCM 031406 conflicting management documents,including,without limitation, the By—Laws,architectural standards,if any,and the Rules and Regulations,if any.4 0 '' ,Section 16.Declarant’s Duty to Convey Lot 143-No later than three (3)years after the date of recordation of this. Declaration in the County,Declarant or its successors or assigns shall convey fee simple title to Lot 143 of Tract 32070 to the Association as Common Area,free and clear of any and all monetary liens or encumbrances.Improvements on Lot 143 which must be completed shall include a pool,spa,tot lot,benches,_tables, trash receptacles,and gazebos as approved by the City for Tract 32070.In the event that Declarant fails to make such conveyance within such three—year period,the Association shall have the right,but not the obligation,to initiate an appropriate legal -proceeding to compel the Declarant or its successors or assigns to convey fee simple title to Lot 143 of Tract 32070 to the_Associa— tion as Common Area,free and clear of any and all monetary liens or encumbrances;however,pending resolution of such,the Associa~ tion and its Members shall have all necessary easement rights over Tract 32070 to access and use Lot 143. Section 17. Exhibits.Each and every Exhibit refer- enced herein and attached to this Declaration is incorporated herein by this reference as if set forth herein in full.All, depictions in such Exhibits are for illustrative purposes only and the “as-built"condition by Declarant shall be controlling. Section 18."Civil Code Section 895 et seq..Provi-sions relating to California Civil Code Section 895 et seg.are set forth in Exhibit "H"attached hereto and incorporated by referencei ,Signatures to Follow soo_7s.o03-11492.FcM 031-106 ‘]-28‘ r Signatgfi e of-Notary Pubfic A IN WITNESS WHEREOF,Declarant has executed this instru- ment on the day and year first above written. "DECLARANT" RJT HOMES -CODORNIZ,LLC,an Arizona limited liability company BY:RJT SINVJSTMEINT,INC‘. an Arizona corporation ITS:Manager ‘ By: Chad Meyer _Its:Project Manager STATE OF CALIFORNIA J 3COUNTYopg,,,fl ,L£,;_,g >_I'5 {man On.//£;uo,y.l9g,—1;.,2005,before me, ,a Not?§ P lie in and for said State,personally appeared'er’,knogp pp me {or proved to me on—the basis of s isfactory evidence)to be Ebe person whose name isp subscribed to the within instrument and acknowledged tc.me that he executed the same in his authorized capacity,and that by his signature on the instrument,the persons or the entities upon behalf of which the person acted executed the instrument. WITNESS my hand and official seal. CC:-/Q(/;z»Ze.fi <{_\€C‘/)&* 1»-:r:ma-4-son #Iflli fl N£J:'uf-5-..L;|;c -cm Rive-rsid9C0llfl -.-114a2.:~*c:-:csoaos ~‘*1 201" (SEAL) ORDER NO:501247650 ILLEGIBLE NOTARY SEAL DECLARATION GOVERNMENT CODE 27361.? I CERTIFY UNDER PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED,READSAS FOLLOWS:- NAME OF NOTARY:ELIZABETH cox —DATE COMMISION EXPIRES:APRIL 22,2007 NOTARY IDENTIFICATION NUMBER:P1412922 (FOR NOTARIES COMMISIONED AFTER 01/01/1992) MANUFACTURER I VENDOR IDENTIFICATION NUMBER:E (FOR NOTARIES COMMISIONED AFTER O1/O1/1992) COUNTY OF COMMISION:RIVERSIDE PLACE OF EXECUTION OF THIS DECLARATIoN:RIvERsIDE TODAYS DATE:3-24-2006 E O’//SIGNATU ' STEWART TITLE OF CALIFORNIA l§}{III]3lIT''”1k" I?I11\E3IE 1, TRACT NO.32070 LOTS 34-45 '5{52No AVENUE GRAYTHORN wmr SILVER SAGE LANE ROSEWOOD AVE Q"JEFFERSON SIREEI 1!.I N S \. u o R 5 E ‘IE--900 Avanuu 47 _Suits 206'La Quinta.CA 9225.3 _°°"‘c "-Voice:750-771-4013 C __ PLANNERS £HGHlEE.R5 sunvcvons I:\4391o\£>c'HIBrrs\LmDscAP£PHL 2-2-2006 EXHIBIT "B" ANNEXAT I ON PRO PERTY The Annexation Property is more particularly described as that certain real property located in the City of La Quinta,County of Riverside,State of California,more generally described as: 'All of Tract 32070,as shown on a Map;recorded in Book 392,Pages 60 to 70,inclusive,of Maps,Office of the _Riverside County Recorder,except the Property.C sod75}oo3-11492.FcM 031406 EXI-IIBIT ”c”WALLS AND FENCESTRACTNo.32070 /‘. ‘TL... J17/——GRAYTHORN wmr _..»-*":"'M P SILVER SAGE LANE 6’MASONRY WALL ON PROPERTY UNE .__,eRosEwoou AVE V q;JEFFERSON STREET ,‘__N';,..1-3.LDESERTspoon—e~...,-,.-,_~—\,,;courer E ‘*3--~‘V .J._,...,./ ROSEWOOD"AVE —~_/(.--an nIF E_.. /\ ‘X H- ii:.\ F1|/ I 6 W _ ‘ 6’MASONRY‘WAIJ. on PROPERTY LINE‘\1' ‘V.\ ._ ' V II D R 5 E 73-900 Avanue 47' -.Suite 208 _La Quinta.ca 922539°“'‘3 H al a:was-m—4o13 :van-771-4073 s c Eu L r z -**‘*:"‘-*'“-,n-ICC--NSULT$NG‘ PLANNERS ENGtNf-IEFIS SURVEYOFIS i:\+391{}\E>(HI8rTS\VufALl.S mo FENCES 2-2-2005 // Exmrr ”D”STORM DRAINAGETRACTNo-32o7o AVENUE 52 GRAYFHORN WAY UNDERGROUNDRETENTTONBASIN III II/fife?§._s3_2No AVENUE ..¢9 ’/I -«:2 ‘x X .SILVER SAGE LANE JEFFERSO 51 /Q 3'.&B’E§E‘é%'E~L3“‘‘REIENHON BASEN /1 ' ]I[. K I . t E T _/——ROSEWOOD AVE “-3- JEFFERSON 31 /zDESERTspoonCT=3 EUNDERGROUNDE. RETENTION BASIN M DESERT SPOON —--.~COURT ROSEWOOD AVE 'AJEFF£Rsoy ST / 9|. ~.__ ROSEWOOD AVE UNDERGROUNDREIENTTONBASIN JEFFERSON ST / HAWIT-IORN CTUNDERGROUNDRETENTIONBASIN ROSEWOOD AVE / TENNIS CTUNDERGROUND.REIENRON BASIN ----IRONBARK WAY I u 0 R s E 75-900 Avenue:47-Sufl a 208'La Quinta,CA 922539°-“'C H oco:?6|.'}'—TJ'1-4013 4073 ceRsuu:Ro :750-471- SCHULTZ -'_"**"""-A r-Lauuzns ENGINEERS 'sunvcvovns l:\4391B\D<HIBlTS\STORM DRAINAGE 2-2-zoos mxza__m._2%K.‘ 33N T83 m_9a:% w Ea:I%E.1m I .uo:.mg Iocmio I _.a_io:.o\<m3m:o 2 S. \/ mxzc:__m..Ea:Br % 20: N. V Fol 295:3 >. E9:1EmsI UBEQ :ocm3@.I ro:.S:o\<m:u_m:o Z.._..m. 'S'1'N ~ DUSQJS/\/DUD]rUD‘| — E>ug:;noH pauod ... Zfl pd — umd V UOHO/\E9|3 mag a'"flr'"'in_|_|I 11”?“- // / / I / I / // 1’ la‘:-|:||I Q........ E O 3 l\J ..‘N ‘Y L 2_Q |""§i|."fi|I.,"‘|tE"V.~.‘~~‘V\\ " T7 /7///[_////// H3 in mxzg__m._ \\. Jrxxw \\ \ I $ \&, ; 3; . mmow m_m<o:_o:%w A . 4 U3: 1 EL i @925 Iocmim I ro_io:o\<m.-.Um:o Rout below is responsibiiily of Pian.2 ' Plan 4_ % Plan 2 Elevation A Plan —134--2 ~Paired Housing ——Lantana/Verbena N.T.S. 7//////’/////j,/,'//%//A/'/ // \\ \\\\\\\\\\ ////////r //%flu _. / //‘ 4/ / //,x / // \\ Plan 4 $3‘; \\\\\\\\\\\\ w\ ‘'\‘\_ ‘\ Elevation B Pian Plan 2 . I _u :4I A 4 I m§_g..._m_.US: N? US: A 3.03 m_m<o:o_: > _. Ea: I UPIJA. I nexa iocmia I} _.m_:S:o\ro3Q:n_ 2.3.. mx:__o:__m__Em: A 2% # $2 m_m<o:o: .> _u_o: I Egg L _uo:mq Iocmio .1. _-o:S_\,_o\_.o:S3o 2.3. mxzg__m_. _u_o: bfi mag. 529:8m % .U_a: 1 _u§..L_.L... UQBQ :ocm_:@fI ro_io:o\ro3o:o zqm. mx:_g..__m__US: A US: L $63 ,m_m<3.—o: m 39 : Ugiuy .. .§_:.a :o:m_:@,....ro:_S:Q\._[o:E:o zam. l Illa» In .o '. lull / // €7 no % ousing —-Lontcmo/Lontoncn ‘N.T.S ‘ //, //M/W//////, / ,,,,,,, ,/ . /. / ,. , // //, ., /, , / M, / _ / r/. - . , / /. . -———aired /NW/i 4//,../, / A ,. ,., / / ./ _ /__w,,, //, ////, ,./ / ,, / ,, % /, // / / %lg". //////////////////.////// '/ /'. j’// / \\\\\\\\\\\ / / /. / / // ”//’/ //////,1/ / /// J /' ///g/’/’////7 \\\\/ / /’// Plan 4 /7//A EXHIBIT “F" Not applicable 50076 .003-11492 .FCM Q3111 G6 EXHIBIT "G" Not applicable 50076 _O03~11452 -FCM 031406 EXHIBIT "H " Civil Code Section 895 et sea. (The following provisions are expressly incorporated into the main body of the Declaration as if fully set forth therein: A.Notice cflf Procedures.(M1 September ZML 2002,the Governor of the State of California signed into law the construction dispute reform bill known as Senate Bill No.800,which added section 43.99 and Title 7 (commencing with section 895)to Part 2 of Division 2 of the California Civil Code (collectively,"Title 7").Title 7e contains various procedures which may impact an Owner's legal rights as a homeowner.,Each Owner and the Association may wish to consult with an attorney or other legal advisor to ascertain the requirements of the Statute and its impact upon his/her/its legal rights. B.No Enhanced Protection Agreement."Nothing in the Home Buyer's Warranty or any other document provided by Declarant to initial Owners of Lots within the Project diminishes any rights or obligations the Owner or Declarant may have under Title 7.Neither the Home Buyer’s,Warranty"nor this Declaration.constitutes an "enhanced protection agreement“under California Civil Code Section 90in Further,In)other‘express or.implied.representations «or‘ warranties made by Declarant are intended,or shall be interpreted, to be an enhanced protection agreement.A - C..Declarant’s Election NOT To Engage In Statutory Non—‘ Adversarial Dispute Resolution Procedures.Each Owner,by accepting a deed to a Lot,and the Association,by accepting a deed to the Common Area,acknowledges that the Declarant has elected NOT tO"_‘ engage in the:non-adversarial dispute resolution procedures set forth in Title 7 at Sections 910 through 938 and has provided an alterna~ tive non—adversarial herein OI'jJ1 the purchase anui sale contract between the Declarant and the Owner (which shall be binding upon subsequent Owners of Lots-in the Project). D-Agent for Notice.Notice of Disputes shall be given to the agent for service of process for Seller set forth in the most current records of the Secretary of State of California.Seller’s agent is currently:Chad Meyer;c/o RJT Homes -Codorniz,LLC,80+ 1090 Avenue 50,La Quinta,California 92253. E.‘Alternative Dispute Resolution of Disputes._If a no Dispute remains unresolved after completion or termination of the pre—litigation procedures set forth herein or in the purchase and sale contract between the Declarant and the Owner,the adversarial dispute resolution procedures.set forth in the section of this Declaration entitled "Alternative Dispute Resolution Procedures — Binding Arbitration”shall apply. S0O'?5 .O03 -11492 .‘FCM 031406 EXHIBIT "I" __D_ISCLAIMER THE ASSOCIATION AND EACH OWNER UNDERSTANDS AND AGREES THAT THE HOME BUYER'S WARRANTY IS THE ONLY WARRANTY,EXPRESS OR IMPLIED,GIVEN BY’ DECLARANT WITH REGARD TO THE LOTS,RESIDENCES,COMMON AREA AND- PROJECT.DECLARANT MAKES NO OTHER EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS REGARDING EITHER LATENT OR PATENT DEFECTS IN THE LOTS,RESIDENCES,COMMON AREA,OR PROJECT,OR ANY COMPONENTS THEREOF, OR FIXTURES OR PERSONAL PROPERTY INSTALLED THEREIN,OR AS TO THE MER-I CHANTABILITY,FITNESS,HABITABILITY,A OR QUALITY THEREOF,AND DISCLAIMS ANY SUCH WARRANTIES AND REPRESENTATIONS,TO THE FULLEST EXTENT ALLOWED BY LAW.A ‘ SPECIFICALLY,AND NOT BY WAY OF LIMITATION,DECLARANT HAS NOT MADE ANY REPRESENTATION REGARDING VIEWS,THE FUTURE USE,APPEARANCE OR HEIGHT OF SURROUNDING PROPERTY,SELLING PRICE OF OTHER HOMES,FUTURE USE,APPEARANCE OR HEIGHT OF ADJOINING PROPERTY,OR DESIRABILITY OF ANY PARTICULAR LOCATION.DECLARANT MAKES NO WARRANTY OR REPRESENTA- TION AS TO THE PRESENCE OR NON—PRESENCE OF RADON,METHANE OR OTHER NATURALLY OCCURRING HAZARDOUS ENVIRONMENTAL CONDITIONS,OR TO THE EFFECT OF ANY SUCH CONDITION ON THE LOTS,COMMON AREA OR "PROJECT,OR THE ASSOCIATION OR OWNERSL ’C‘ NOTWITHSTANDING THE FOREGOING,DECLARANT’S WARRANTY SHALL IN NO EVENT EXTEND TO ANY CONSUMER PRODUCT,APPLIANCES,AIR CONDITIONINC-I»_UNITS, FURNACES,WATER HEATERS AND OTHER PRODUCTS INCLUDED IN THE LOTS, COMMON AREA OR PROJECT THAT ARE CONSIDERED "CONSUMER PRODUCTS"AS DEFINED BY THE FEDERAL TRADE COMMISSION FOR THE PURPOSES OF THE_ MAGNUSON MOSS ACT (15 U.S.C.2301 ET SEQ.)THAT MAY BE INCLUDED-IN ANY TRANSACTION WITH ASSOCIATION OR ANY OWNER.,THE MANUFACTURERS OF SOME PRODUCTS USED IN .THE HOUSE MAY PROVIDE A MANUFACTURER’S WARRANTY.DECLARANT HAS NO OBLIGATION OR RESPONSIBILITY FOR THE, MANUFACTURER'S PERFORMANCE,AND DECLARANT DOES NOT WARRANT ANY OF THESE ITEMS FOR ANY USE,FITNESS FOR USE,WORKMANSHIP,QUALITY OR ANY OTHER PURPOSE .—I EACH OWNER AND ASSOCIATION HAS CONDUCTED ITS OWN INVESTIGATION WITH RESPECT TO THESE AND ALL OTHER MATTERS.TO THE FULLEST EXTENT ALLOWED BY LAW,‘EACH OWNER AND THE ASSOCIATION WAIVES ALL IMPLIED WARRANTIES RELATING-TO THE LOTS,RESIDENCES,_COMMON AREA AND PROJECT, OR ANY COMPONENTS‘THEREOF,OR"FIXTURES OF PERSONAL PROPERTY INSTALLED THEREIN,INCLUDING ALL IMPLED WARRANTIES.REGARDING EITHER LATENT OR PATENT DEFECTS IN THE LOTS,RESIDENCES,COMMON AREA AND/OR PROJECT OR AS TO THE MERCHANTABILITY,FITNESS,HABITABILITY,OR QUALITY THEREOF. EACH OWNER AND THE ASSOCIATION ALSO WAIVES THE RIGHT TO SEEK DAMAGES OR OTHER LEGAL OR EQUITABLE REMEDIES AGAINST DECLARANT CUNDER ANY, OTHER COMMON LAW ORNSTATUTORY THEORY OF LIABILITY,INCLUDING,BUT NOT LIMITED TO NEGLIGENCE AND STRICT LIABILITY.NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS PARAGRAPH,CERTAIN WAIVERS OF RIGHTS MAY BE UNENFORCEABLE . NO SALESPERSON,EMPLOYEE OR AGENT OF DECLARANT HAS AUTHORITY To MODIFY THE TERMS OF THIS EXHIBIT.THIS EXHIBIT SUPERSEDES ANY so075.oo3—11492.FcM 031406 PROMISES;AGREEMENTS,OR OTHER REPRESENTATIONS MADE BY ANY SALESR PERSON,EMPLOYEE OR AGENT OF DECLARANT,_WHETHER ORAL OR WRITTEN,WITH RESPECT TO THE MATTERS SET FORTH IN THIS EXHIBIT,AND EACH OWNER AND THE ASSOCIATION HAS NOT RELIED AND SHALL NOT RELY ON ANY SUCH PROD/1IS~— ES,AGREEMENTS,OR‘OTHER REPRESENTATIONS WITH RESPECT TO THE MATTERS, SET FORTH IN THIS EXHIBIT. NOTHING IN THIS DISCLAIMER AND WAIVER OF WARRANTIESIAND OTHER RIGHTS EXHIBIT .OR THE COMMON AREA WARRANTY DIMINISHES ANY RIGHTS OR OBLIGATIONS DECLARANT,AN OWNER,OR ASSOCIATION MAY HAVE UNDER CALIFORNIA CIVIL CODE SECTIONS 895‘AND 945.5.' I soov6.oo3-11492LPcM 031406 TABLE OF~=CONTEN'I‘S SECTION 11 Express Limited Warranty: One 8:Two Year SECTION III Reporting a One Year Workmanehip or Two Year Systems Defect >5‘. SECTION V Reportitlg a ‘z -i-“\_:'-::t’£¢_§.._-.we I -g Warrant to I:-2'-Q Quality Stan -I - “F ._.,-.*.:3 HOME BUYERS WARRANTY CORPORATION Customer Service Office 26?5 5.Abilene Street '"-‘-Aurora,CO 80014 303.368.5204 72o.747.6qoo «I Home Buyerswlarrantyfi HOME BUYERS WARRANTY“BOOKLET 'r-NTY COVERAGE J e urchasinga Home with express - ' Builderisstated on your Certificate of War 1;. o .'.'-u "=‘?;"'your Builder's Limited Warranty to you.Your Builcle “_I -' .313“ .‘"fects;and if so indicated on your Certifi cate of Warranty Cover age,will also be free from defects in workmanship and systems ’Your.Builder‘s Limited Warranty will be insured by the insuz ‘ance company stated on the Certifi cate of Warranty Coverage which you "will receive after your home is enrolled with Hom: Buyers Warranty Corporation (HBW). This Warranty is a contract between you and your Builder HBW is the warranty administrator,but NOT a warrantor unde the contract.Your Builder's warranty insurer is not a parfi’ti this Warranty Contract,but your Builder‘s warranty insurer he agreed to perform certain tasks and undertake certain oblige tions which are described in this booklet. Congratulations and enjoy your new home! Home Buyers Warranty Corporation HEW/V 307 '10/‘l/9 y5>dii,+1‘? lb""._.2 -..v-r ..'.-5:-t‘.» SECTION I DEFINITIONS — You means the person(s)who holds title to the Home,Home means the dwelling and does not include outbuildin nor any appurtenant structure or attachments to the dwelling,other than attached garages or carports (SECTIC VIH Exclusions),and Builder means the Builder as listed on the Certifi cate of Warranty Coverage.Warren Insurer is the Builder's Warranty Insurer as stated on your Certifi cate of Warranty Coverage.Effective Date Warranty is your closing date,first title transfer or the date you or anyone else first occupied the Home if that or before closing.For FHANA homes,the Efi ective Date of Warranty is the date of closing.Condominium mean: multifamily residential dwelling,each title holder of which has 100%ownership of his own unit and partial owners} of ooazumosn elements sud:as hallways,walkways,elevators,and owns the land wholly in oonznnoen.Certifi cate Warranty Coverage is the document which provides proof of warranty coverage for a certain address and t coverage provided by your Builder.Lirnited Warranty means the express warranty described by the terms a provisions contained within this booklet.HEW means a warranty administration company which performs cert: tasks for the Warranty Insu-rer—.~—VVa-rranty.Ter,m isthe .per.iod,d11_IiI1g which 3 “!<’.:1.I«Z1.»T:fl171l3’§3.d-.E1.?.f%§l?:ll1§}.§13fiI.~§§-§?§’-93%!’-s order to be covered hereunder,and is that period which begins on the Efi ective and ends one,two,four,or ten years thereafter.Warranty Limit is defi ned .fatheQ ,_iginal sales price of the Ho: as stated in the Certifi cate of Warranty coverage.Defect is defi ned in eacu, struction Quality Standards for workmanship and systems as set forth in ibis}: for Horn e Enrollment means the Builder Application for Home Enrollment For ‘£2 '‘g _- before the Home was enrolled in the I-IBW program.A Common lamentis any p “ enrolled units are located which is defi ned as a common eleme Declaration of Condominium.Common Element Stairways '.-"o‘””’:'"' tamed‘bythe Homeowners Association orsomeone other a J ‘,7. Defect is defi ned as actual physical damage to the desiggt_afe' of such load-bearing elements which affects their load-,—+s.,=,' safe,unsanitary,or otherwise unlivable.All four pa‘ qualify as a Structural Defect.This coverage filihesa 1‘ Housing and Urban Development in effect at t _7 strophic failure of load-hearing elements of youiii "ii,. thatcontained in regulations of the Department ,_npg of this Warranty .This is coverage for ca iggfiatedload-bearing elements that are cove: under this structural warranty are: 1.Foundation systems 2.Beams; 3.Girders; 4.Lintels; 5 ' 6."Roof sheathing.7.Walls and part1t1gns;s,,s* 8.Roof _"‘pg systéigpiini 9.Fm r sysfiins;and _‘__V 10.#313 1‘'’I Examples of elements .93;covggggd by this structural warranty which are deemed NOT to have Structural Defi I potential are:‘5 j Non-load-bfi aringpartitions and walls; Wall tile or paper,etc.; Plaster,laths,or drywall;' Flooring and sub—flooring material; Brick,stucco,stone or veneer; Any type of exterior siding; Roof shingles,roof tiles,sheathing,and tar paper; Heating,cooling,ventilating,plumbing,electrical and mechanical systems; Appliances,fixtures or items of equipment;' Doors,trim,cabinets,hardware,insulation,paint,stains;and Basement and other interior floating,groundesupported‘concrete slabs. S .:25-II-—-'¢.D00-'-3O'3U‘I+I=~u3I‘-D:--4 y_ WARRANTY CORPORATION Customer Service Office 2675 S.Abliene Street Aurora,Colorado 80014 303.368.5204 720.747.6000 HOME BUYERS ‘NOTlCE OF CLAlM FORM FOR STRUCTURAL CLAIMS ONLY _Home Buyers Warmrrryw Please read the Home Buyers Warranty Booklet for filing instructions and pertinent information. YOUR NAME ADDRESS OF lCityJ (State) HOME PHONE (I «BUSINESS PHONE l EFFECTIVE DATE ' or wARRAI~ITv._//__ Mo}(Day)_(Year), {Date 0 Closing or FIrst Occupancy)H. Please note that your Home Buyers Warranty“provides Limited Structural ,-_.;;-'_s;=..,;; condmons.You are encouraged to review the Structural Coverage provIsI s I-'-I, Please answer the following questions: 1.Have you reviewed the Definition of a Structural Defe ‘Cl Yes D No 2.Do you believe that you have actual physical darna 7'EIl‘r’es D No load bearing portions of your home? _ E]Yes_D No or uiifl rvable ‘F {-717:?’.;r«='-'"$}'f_H8;fOGRAPH5;ATTACH SEPARATE SHEET IF NECESSARY): "hIg:.__(.-£1 ‘our PROE FALSE,INCOMPLETE,or:MISLEADING FACTS on INFORMATION To AN INSURANCE COMPP{NY_roe NCon ,,EMPTING TO DEFRAUD THE COMPANT.PENALTIES MAY lNCLUD£IMPRISONMENT,FINES,o£I~IIAL or INSURANCE,AND civn. INCOMPLETE,on MISLEADING crs on INFORMATION TO A POLICYHOLDER {BUILDER}on CLAIMANT IHOMEBUYER}FOR THE PURPOSE or DEFRAUDING ox ATTEMPTING TO oEI=aAuo THE POLICYHOLDER (BUILDER)ox CLAIMANT tuomeauvm WITH REGARD TO A SETTLEMENT on AWARD PAYABLE FROM INSURANCE PROCEEDS SHALL BE REPORTED ‘IO THE INSURANCE COMMISSIONER OF YOUR STATE. ""CH'E"C"‘I<‘oI~IIs (if applicable]2.CJVA1.UFHA 3.UFrnHA Case # If you are the original owner,and your Home has original .D , FHA~finanCin'g,please provide-the following:-H-°meb”"'E'S'3"a“"e (me Name of mortgage company:__ Address of mortgage company: ._.___.___'_____ L Homebuyer Signature -(Date)- I—I3x7s7_3o4 10l1f99 \-n. SECTION II EXPRESS LIMITED WARRANTY:ONE AND TWO YEAB* (*Indiana residents:Please read ADDENDUM at the end of Section VIII) If your Certifi cate of Warranty Coverage indicates your Builder is providing One and Two Year Coverage,*for one year from the Efi ective Date of Warranty your Builder warrants that your Home will be free from defects in materials and workmanship as defi ned in the Construction Quality Standards in Section Di;and for two years from the Efi ec- tive Date of Warranty,your Builder warrants that your Home will be free from defects in the electrical,plumbing, and mechanical systems to the extent stated in the same Construction Quality Standards. SECTION III REPORTING A ONE If you believe your Home has a Defect that is covered under your Builder's One Year Workmanship or Two Year Systems Warranty,which occurred during the applicable Warranty Term,you must a listing the spe‘c'ific warranty Defect(s)and the date the Defect(s)occurred.Do thj Y his 1 a problem and before your Warranty Term expires.Your Builder should perfo __-ay for (at their option)these warranty repairs 1f a Defect occurs.‘_,; Once you have written to your Builder,if repairs are not made within sixty (60) ..£ ,unless your Warranty Term will expire within those sixty (60)days,i which case,4.; 1.Complete the Notice of Complaint Form,which is fou :3” 3.Send one copy of the Form to your Builder.We recom me requested. HEW Warranty Service Office 2675 S.Abilene Street, All three of these steps must be complet I’ we cannot initiate work on your warm ..V p oti at "gill be u Builder and You are unagle to resfiye .'3'4 your dispute (see SE_.. followed the above _:.:0cedu ' If HEW determine award,or is found must then forward to I-'r.~..gh,_ Insurer stated on your Ce the Warranty Insurer,and t e Warranty Insurer will adjust the claim.(-If you are the original owner and your Home has original FHANA-fi nancing still in efi ect,the $250.00 is collected after the claim is accepted and the amount of loss is determined.) 4...‘ In summary:The reporting procedures described above must be completed prior to the applicable- warranty’s expiration date,and all notices must be received by HBW Customer Service no later than 30 days after your warranty’s expiration date.Warranty coverage for any Notice of Complaint re- ceived after this date will be denied,and neither your Builder nor the Warranty Insurer will have any obligation to you for the repair of these Defects.Delays caused by you that would make it impossible for the Warranty Insurer to collect reimbursement from your Builder for work the Warranty Insurer would pay for will void your warranty coverage.The time limits are a material condition of your Warranty.-3 ' ‘'--'~-x--.-s--rs r‘x.'‘i;L--»»-.pP»-.4... ‘WHAT T0 D0 IN THE CASE OF AN ENIERGENCYI An emergency is a condition which if not immediately repaired may cause danger to thel-Iome or its occupants.If you have a One or Two Year Warranty coverage emergency,you 'must contact your Builder immediately.If you are unable to contact your Builder,you must contact the HBW ’.-'.'Z"I"!"f 1' ‘and whether the Wan: Customer Service offi ce at (303)368-4805 or (303)388-5204 in order to receive authorization to make any emergency repairs.If you have a Ten Year Structural Warranty coverage emergency,you must contact the HBW Customer Service ofi ice in order to receive authorization for any emergency repairs.If neither your Builder nor the HBW Customer Service offi ce is available for emergency authorization,1)you must make minimal repairs until authoriza- tion for more extensive repairs has been approved,2)you must take action in.order that further damage can be mitigated,and 3)you must report the emergency to the HBW Customer Service offi ce on the next business day.Any unauthorized rep airs will not be reimbursed unless you have followed the above procedures. SECTION IV EXPRESS LIMITED WARRANTY:TEN YEAR For ten years from the Effective Date of Warranty your Builder warrants your _e." Structural Defect is defi ned in Section I." SECTION V REPORTING A STRUCTURAL DEFECT .~ta.-.».‘:1a;.a,u -‘r..-¢--'-:-'---‘u ‘g --465:5 _.--up ,- age,and a $250 claim investigation fee pay to t - Warranty Coverage to:c HEW Customer Service Ofi ce 26 75 S.Abilene Street Aurora,CO 80014 \_'.'.1-:‘--‘NZ!E“.. "2':'3- .l:.k *5}?32’:13‘."ce£ptrequested. _ 2:' “ii Except for autho __=ency r the repair of)a c 'H 1;before the Warranty Insurer has an opportunity to inspect the Defect. Doing so will ma}: '--‘§.t‘5‘-E=-~1-".=:;~‘ _ty Warranty Insurer will you have had repaired or r -‘a laced.In addition,you will not be reimbursed for any costs or expenses you undertake to investigate a structural defect such as,but not limited to,engineering and attorney’s fees.''. warranty;whether 'SECTION VI EXPRESS LIMITED WARRANTY:connommum If your Certifi cate of Warranty Coverage indicates your Builder is providing One and Two Year Coverage,your Builder is providing the same coverage for your unit as described above under EXPRESS LIMITED WARRANTY: ONE ’.7‘ HOME BUYERS WARRANTY CORPORATION Customer Service Office NOTICE OF COMPLAINT FORM 26755.Abilene Street FOR BUILDERS WARRANTY COVERAGE »°~urora.Co|orado800M workmanship/Systems complaints only ~303-353-5204.720.747.5000HomeBflvuvWu1trny® Please read the Home Buyers Warranty Booklet for fiiing instructions and pertinent information.If your previous written attempts to resoive your problems with the Builder have failed,then this form is to be sent to your Builder,with a copy to the Home Buyers I of theepplicéble warranty ternfor the coverage wit be denied.We recommend certified mail,ret __g5;g':»,;'*_;_;r requested- -5:. NAME ADDRESS OF COMPLAINT (SUee0 (City) HOME prions () EFFECTNE DATE OF WARKAN'fY (Date of Closing or First Occupancy)(MM i J NATURE OF DEFECT (BE SPECIFIC}, 3 -spondence between you and your Builder involving-this matter.Please provide any correspondence CHECK our (if applicable}"" 1.CJFHA 2.y Cum 3.ClFmHA Case#' Hornebuyer Signature Date If you are the original owner,and your Home has original ‘" FHA—financinpg,please provide the following:. Name of mortgage company:'.-J - Address of mortgage company:' J Hornebuyer Signature -' _Date HEW 305 10/1/99 ‘aha ,.‘-.~’-.3.1i_r§.1br._1ty»C_yu§t__<)_r_r:1z-;-r St3_ry__ir_:e Q_‘fii,_Vce_._,This:form rnust.__l:__}e reg:_ei_yed by your Builder and _HBW_noieter that thirty.(30)days after the expiration‘.-.A . . CI I -l_-.,-.-,-—9---.-.1 «go —II-U .---o ----s a .;.u;;goongy‘y...vu:,'\'J'-...1..-.gr,._..n ;(\:,’_,”L"\.,‘..)Fl(,‘,§lI ‘.11 , / .. .'‘_; 'I _. c -'u w I ' . 'I All Common Element Exterior Stairways and Landings contained within multifamily projects will be covered only if they are constructed with metal and/or concrete materials.All exterior Common Element Stairways and Landings contained within multifamily projects that are constructed of wood are excluded from coverage unless your Builder paid an additional fee for coverage of wood materials used in Common Element Exterior Stairways and Landings as reflected on your Certifi cate of Warranty Coverage.EXCEPTION:In the Las ‘Vegas and Phoenix metropolitan areas no additional fee is required for coverage of wood materials used on Common Element Exterior Stairways and Landings.In the state of Colorado all Common Stairways and Landings contained within multi-family projects must be constructed with metal andfor concrete materials.Wood materials are strictly excluded from coverage.Common Elements and Common Element Stairways and Landings are defi ned in Section I. Reporting a One Year Workmanship,Two Year Systems or Structural Defect:For reporting a One or Two Year complaint for your unit only,follow the procedure outlined above under Reporting a One Year Workmanship or Two Year Systemsilefect.Your building is eligible for.One and Two Year Common Eleme . enrolled all units in your building under this One and Two Year Warranty Progr‘h begins on the date the Certifi cate of Occupancy was issued for the building co -_rg'' ments defects must be reported within the applicable Warranty Term for Co ‘I I a One or Two Year Common Element Defect or a Structural Defect and your Buil ing in the Home Buyers Warranty“Program,then your Condominium Association by the Association must file one Notice of Complaint form or Noti -.Claim form fo Notice of Complaint form or Notice of Claim form must list each “ ‘L .Coverage must be attached for each unit of the building.Under th deductible for Common Elements coverage is $250 per unit L ;.n-.3“ Under the Ten Year Coverage,the maximum claim inve r‘'3 '” building,whichever is less.If your Home is a Condorni allow free access to,on,through or within your unit £1 nil 'H--~C" '‘-:=»-i.:=__tinthebuilding or $5000 per' I‘ours (after receiving notice from your Association,your Builder,HBW or the nsurer _J your Builder or the Warranty Insurer)and you ;_,,_p- such notice. SECTION VII CONDITIONS ,, THIS IS AN EXPRESS LDMTED WAR ‘'“= law of your state,all other warr",A'__,s,express ofi gpegied,including but not limited to any implied warranty of habit- ‘i -‘l-.%.,,£,,_, -‘.—'ability,are hereby disclaimed a ''[=.‘tIntheeventanyprovisionofthi"I ,§ forceable,that determition will =g_§s':‘hi ect F‘? ‘lvalidity of the remaining provisions. 5'ations of our B“-,ggisalesprice of your Home,or such lesser amount as I-IBW or the Warranty --.,=:-A-=l';l ' Elements of a Condoum str 'urereduce your Builder’s andfor the Warranty Insurers warranty obligation with respect to the structure in the structure.When t ranty Insurer shall be excess to any valid and collectible properly or casualty insurance available to you or to the Builder,whether such insurance is primary or excess insurance.I.’ THIS IS AN INSUREDWARRANTY This Warranty may not be canceled by HBW or the Warranty Insurer.In order for the Warranty Insurer to plan for the right amount of reinsurance and to insure these warranty coverages at a correct price,the Warranty Insurer needs to observe the warranty time limits carefully,and so do you,in order to avoid a material breach and the loss of warranty coverage.. WARRANTY NOT NSURAN CE This Warranty is not an insurance po]icy-You should have homeowners insurance and this is not it.Your bank or other mortgage financier may insist on homeowners insurance coverage if you have a _mortgage.This is also not your Builder’s CGL (commercial general liability)insurance policy.This Warranty is not a maintenance,agreement or service contract.~5 'i and addresssof-your mortgagee,the...-FHAfVA~case.number.and the loan.number (your,,. REPAIR The Builder or the Warranty Insurer shall repair,replace or pay the reasonable cost of repair of any covered Defect or Structural Defect.The design,method and manner of such repair shall be within the sole discretion of the Builder,if the Builder pays for the repair,or of the Warranty Insurer,if the Warranty Insurer pays for the repair.You are responsible for any damage to any improvement,fixture or property not constructed by the Builder which is damaged by,or during the repair of,a covered Defect or Structural Defect,and you shall pay for the cost of removal of such improvement,fixture or property necessitated by the repair of a covered Defect or Structural Defect. No repair shall extend the term of this Warranty as to any covered Defect or Structural Defect,including without limitation,the Defect or Structural Defect which was the subject of the repair.Before the Warranty Insurer repairs or pays for the repair ofa claim,you must assign to the Warranty Insurer any rights you may have against any other person with respect to the claim.In the case of cash payments regarding homes with original FI-IAfVA~fi na.ncing still in effect,the Warranty Insurer is required to mal-re payment to you and your mortgagee.You must provide the name ll. have this information)when you file a claim with respect to a Home with a these obligations to be performed.The repair of a Structural Defect consists of,:_ to the load-bearing portions of your Home which is necessary to restore their non-load-bearing portions damaged by the Structural Defect and whose repair again safe,sanitary,or otherwise livable,and 3)repair and cosmetic correction o '8‘:~;..'3‘f"“=ces,finishes and coverings,original with the Home,damaged by the Structural Defe _.,o which requi .,g,->.ii and replacement to repair the Structural Defect or to repair other damage directly :1 intended to restore the Home to approximately the condition just a like-new condition.Your Builder’s andfor the Warranty Ins ing repairs to your Home (or payments to you or to another Your Builder's andlor the Warranw Insurer's costs of d Structural Defect,are not deducted.In addition,any 1,; tursl Defect such as,but not limited to,engineerin.nd ACCESS TO YOUR HOME In order for your B ..__‘_‘er to carry out their responsibilities under this agreement,they will require access to your ' Home Enrollment or by using this Wan‘.p yCove A ' Warranty Insurer and their agents a -. ''*-,._tests in your Home as in their judgmet u .-.2._ attorney in fact for the purpose of applyingfl m VT‘?-llélga an order to compel access to your Home during normal business hours in order for the ..g__their agen "_r cgntractors to inspect,repair,and conduct tests in it.Failure to allow access to your Home will “=.'e_— ARBITRATION Any ing without 1imitati_ in the inducemen -dealing,shall be (hereinafter “C ‘ unwilling to condu "'6 is disad from conducting such arbitration,the arbitration shall be conducted by and pursuant to the rules o -,_..—:”Arbitration Association applicable to home warranty arbitration proceedings -‘ be entered as a judgment anyState or Federal court of competent jurisdiction. The initiation or participation by any party in any judicial proceeding shall not be deemed a waiver of the right to ‘enforce this arbitration provision,andnotwithstanding any provision of law to the contrary,shall not be asserted or accepted as a reason to delay,to refuse to participate in,or to refuse to enforce this arbitration provision.Any party shall be entitled to recover reasonable attorney's fees and costs incurred in enforcing this arbitration provision,and the arbitrator,shall have sole authority to award such fees and costs. ‘The administrative fee charged by the arbitration service shall be borne equally between the Homeowner and the i l" time to time be amended,to the exclusion of any difi erent «. ‘you elect not to use the prearbit1ig:'d‘i*Ll' it Builder in the case of the Builder's One Year Workmansh'1pf'I‘wo Year Systems Warranty Coverage*.The adminis- trative fee charged by the arbitration service will be paid by the Warranty Insurer in the case of single—arbitrator structural claim arbitrations.The administrative fee charged by the arbitration service will be paid by the Builder in the case of a dispute between the Builder and Warranty Insurer (andfor I-IIBW).The ax-bitrator’s compensation fee shall be borne equally by the arbitrating parties for single-arbitrator arbitrations.Additional fees may be assessed in accordance with the arbitration rules and fees.Any party who shall commence a judicial proceeding concerningh dispute which is arbitrable hereunder shallalso be deemed to be a party requesting arbitration within the meaning of this paragraph. An arbitration is normally conducted by only one arbitrator;however,a panel of three arbitrators may conduct an arbitration proceeding with the consent of all parties thereto.The party requesting the panel of three arbitrators -ta ~*1 ’I ..1 I .‘l',.'-.’2‘-S-‘A..~-:-.;....~.‘\5.‘-'~ dispute being submitted to the arbitration service.Additional fees may be asses ’1-dancewith t,he_arhiti-a- tion rules and fees. The Warranty Insurer shall have the right,in advance of the arbitration proce ., the subject of the arbitration proceeding if the request for arbitration was made mo claim decision of Warranty Insurer concerning such a Home.No arbitg-ation proceedi :.=_, single family detached dwelling or,at the Warranty Insurer’s opti nomore th \ ’“ieat and as the same may from _;:€%_‘:_‘,_:_f_“=law,ordinance or judicial rule; and to the extent that any state‘or local law,ordinance _.~.% rules of the arbitral association under which the govern the conduct of the proceeding.'A ' The parties expressly agree that this arbitration provision in _ erned by the provisions of the Federal Arbitration Act,(9 U{_‘§ ,_1-mine 1‘:e nenforceable by the arbitrator or by the -‘-If any provision of this arbitration agreement sh.it , 1e._tii’erefrom,and enforceable according to their court,the remaining provisions shall be deemed to _h terms.4%‘-* ¢-PREARBITRATION ooNcIL1AT1o15I{;.l;::.~..:-to omes Only):If your Home was originally.FHANA-I financed and still has this original FHAIVIT“qnanrilg in efi 'ect,I-IBW_andfor the Warranty Insurer will offer prearbitration conciliation at no?‘,to you.If yo ‘”;ag:@dissatisfied with the outcome of prearbitration conciliation or "_'mlation%‘i'ovision,then binding arbitration is available to you during the 4I- n-£.."‘-‘IF entire term of this warranty. WARRANTIES T sor in title to the ome,inc ‘ such transfer Sh -it o3_t0‘?§z_’3Il:3duCB the coverage under this Warranty for its unexpired term-There is no limit to the numbe sions.If you sell your Home dugiiig the Warranty Term,you agree to give this Warranty to your buyer to inform your buyer of -warranty a¥‘’''‘"‘_“fid to make it possible for the buyer to fulfill the obligations under the terms of this Warranty.If you are a successor owner of the Home (that is,an owner other than the original purchaser),your Home will benefi t from the coverage provided by this Express Limited Warranty.Likewise,you are also bound by all the ter1')r_ns and conditions of the Warranty including but not limited to claims procedures and participation in binding at Itra ion.— I - YOUR OBLIGATIONS The Warranty coverage pays for the cost of labor and materials to correct a covered defect. Your obligations are to care for your Home in such a way as to rule out or minimize damage to it,and to pay your own expenses,should you elect to incur them,of pursuing claims against your Builder or the Warranty Insurer,whether for professional services or for any other cost.You should be aware that all new homes go through a period of settle- ment and movement.During this period,your Home may experience some minor material shrinkage,cracking and other events which are normal and customary.Remember that you are responsible forproper maintenance of you: nI I I ‘:5’‘Ir 1'37“. Home including maintaining Builder~set grades around Home,planting trees and shrubs at the pi oper distance,and conforming to generally accepted landscape practices for your region.Any ‘damage caused or made worse by your ‘negligence,improper maintenance or changes,alterations or additions performed by anyone other than your Builder or his/her agents,is excluded from coverage under these warranties. SECTION VIII EXCLUSIONS ,-s I This Warranty does not apply to: l . 1-.Defects in outbuildings,including detached garages and detached carports (except outbuildings which con- tain the plumbing,electrical,heating,cooling or ventilation systems serving your Home);swimming pools and other recreational facilities;driveways;walkways;patios,decks,stoops,steps and porches or any other I .appurtenant structure or attachment to the dwelling other than attached garages or carports;boundary essary for the structural stability of the Home);fences;landscaping «__sodding,“seeding,shrubs,‘ trees,and plantings);sprinkler systems;or other improvements not a p .—'-ofyo 2.Damage to real property which is not part of your Home; Damage to or defects in concrete floors of attached garages that are .l other structural elements of your Home;"“-';-. _4.Bodily or personal injury of any kind (including physical or n ental tress),medical,hospital,rehabilitation or other incidental consequeutal e -<"'."""?'_,';_.,.r,:; property,or damage to any property of others; 5.Any loss or damage which you have not taken appropria 6.Any defect in material or work supplied by ,7-._».4,-=-3"-"“%7':;‘;,,._',~. subcontractors,and any covered defect which W =5.-“”': 9° _,;emotional dis- 7.Any and all consequential loss or damages; 8--Any loss or damage not caused by a defec its employees,agents,or subcontractors 9.Defects in any property which was not '‘'e'_,__'‘j,_,'Home delivered for the original final sales price;"- .‘..u.’..3-4 -s’_D.';\I10.Any damage which is caused *‘ .a.Negligence,improper u .V15 ‘'3 : employees,agents or subco b-Your failure to :_:g_,_prompt an per ticeto HEW and your Builder of any defects; c.Changes of the _.__-__ofthegrol»"=§_:%.__- an . £Dam a ing 01'‘ g.Failure b ,7 or anyone other than your Builder or its employees,agents or subcontractors,to comply with the warranty requirements of manufacturers of appliances,equipment or fixtures; .h.Acts of God,riot or civil commotion,vandalism,hurricane,tornado or other windstorm,fire,drought, explosion,blasting,smoke,water,hail,lightning,ice storm,falling trees or other objects,aircraft, vehicles,flood,mud slides,avalanches,earthquakes,volcanic eruption,or by any other external cause,whether sudden or gradual; i.Abuse or use of your Home,or any part thereof,beyond the reasonable capacity of such a part for ,such use;_ * 1 1.Damage caused by you or your condominium association's failure to perform routine maintenance; 12.Loss,damage,defect,cost or expense which is caused,in whole or in part,by any peril or occurrence for which compensation is provided by state legislation,or public funds; 3 l“-.-‘*¢I.--.‘__[*‘-*2:T‘I;.I"*\'1‘,-‘r-2:-‘-'.".*.:=-vmu1.-.‘r‘C..§3[‘‘.r 5.?wwl..fl'z__"’F.H_‘-'""‘"“ 13.Damage caused by microorganisms,insects,vermin,rodents,birds,wild or domestic animals; 14,Damage caused by dry rot,wet rot,soft rot,rotting of any kind and occurring from any cause,rust,corrosion, 'mold,mildew; 15.Any loss or damage which arises while your Home is being used primarily for nonresidential purposes; 16.Any condition which does not result in actual physical damage to your Home;_ 17 .Uninhabitability or health risk due to radon,formaldehyde,carcinogenic substances,radiation,hazardous -materials,electromagnetic fields,pollution,any other solid,liquid,or gaseous contaminant or toxin; 18-Costs of shelter,transportation,food,moving,storage,or other incidental expenses related to relocation during repair,or any other costs due to loss of use,inconvenience or annoyance; 19.Normal wear and deterioration; 20.Quality and potability of water; 2 1.Sound transmission or sound proofi ng,whether originating from an outsid 0-....l a -.59....‘-p-.._o.—....n~a -.,»,.q,.,..._-r-\5 .inside,or'bet”%?e’ei1 i’ooni‘fsLo'i3'fl6oi‘l‘E§ve’l'éi'§' 22.Failure ofyour Builder to complete construction; 23.Glass breakage; 24.Failure of your Builder to perform any washing,cleaning or cleanup of 25.Structural slab foundation systems that may have experienced some ..;.,_-tare within the foundation’s design performance criteria;_ 26.Violations of local or national building codes,ordinances .27.Any defect you knew about prior to the Effective Date "‘$' through”inventory or punch-list;~g i 28.Any complaint or claim received by HBW after ._ form HEW of any complaints that remain within the Warranty term that are report ' ranty); 29,Outside sillcocks and other hose connec j, 30.Leaks in and of themselves except as 31.Loss or damage resulting from any failur T'91 .,-u 1:?‘0 C 5 :'_§_‘¢'.'.,.,V'federal,state,local or other elevation require- the$3:a.Failure of the lowest £553"?'51 =' agement ordinances;or, rag,,1;-riththe co "i ted by the Bujl-'"“‘“it ,t ordinance to prov-igle fl ' 32.Claims made findamages: This Warranty does 11 pplyto _ cally defi ned in the Con‘?‘ ranty,nor does it cover sys f s defects that are caused by failure of any such manufactured item.Appliances and items of equipment not covered by this limited warranty,include but are not limited to;air conditioning units,attic fans,boilers,burglar alarms,carbon monoxide detectors,ceiling fans,central vacuum systems,chimes,dishwashers, dryers,electric meters,electronic air cleaners,exhaust fans,fire alarms,fire protection sprinkler systems,freezers, furnaces,garage door openers,garbage disposals,gas meters,gas or electric grills,heat exchangers,heat pumps, humidifi ers,intercoms,oil tanks,outside lights or motion lights not attached to the Home,range hoods,ranges, refrigerators,sewage pumps,smoke detectors,solar collectors,space heaters,sump pumps,thermostats,trash com- pactors,washers,water pumps,water softeners,water heaters,whirlpool baths,and whole-‘house fans. urce and transmitted to the lished by the Federal Ems‘it ~«-,--.oft "occurring after it has been vacant for a period of ninety (90)days or its ADDENDUM *Indiana:State of Indiana Only -If your Certifi cate of Warranty Coverage indicates your Builder is providing Two Year Workmanship,Two Year Systems and Four Year Roof Coverage,your Builder warrants that your Home will be free from defects in material and workmanship for two yearsinstead of one year as stated in the Construction Quality Standards and the roof will be free from defects in faulty workmanship or defective materials for four ye are from the Efi ective Date of Warranty.I s ~' I SECTION The following Construction Quality Standards are standards that have been developed and accepted by the residen- tial construction industry in general.They apply only to the One Year Workmanship and Two Year Systems* ‘K50 Fri»-T the construction industry andil-IBW have attempted to 'isolate the roost common aqtn £4‘that occur and in so doing,list the extent of your Builder’s,I_nsurer’s and yo ,_res nsibility.Where a specific .ctici‘“n~,,Lndustry will apply. ‘I construction should meet.N oncomplianoe with these construction istanfiglsrds calls for {Q .I Refer to other parts of this Booklet for specific terms,defi nitiongf-fi ;"" (1'*‘),second (2nd)and fourth (4%)(INDIANA RESIDENTS 0Nl3_*Y_1ye '- ulIn; 33%.-‘,_.‘_a...q,__._‘:5?that apply to the first Please note;Per SECTION VIII EXCLUSIONS,since paafw during the Warranty Term,any defect you knew about or _“pl1‘I1Ch—liSt”items are not covered. Builder will try to its best ability to match and except where Homebuyer custormordered the ite1§‘i‘"a"_;:a3.'*s:% changes in dye lots,colors or patterns,or items ord’eretTf"”'.,T ,ide oi};fi he original construction. ~$- .‘-fv-g.s -: .{““'¢‘-?.«'-'1":us "'~59:5".t5‘ ..£r-.-~-*--.._.-.--are.»==»--:;ea~--.-I fi__3.1.4-’‘’“*.§~.‘ -"'--Ir.I ‘I W.w'l"~“"."‘..'_-',"”:II':7‘|;’."N3.-I53-v ..,,,r'l'B'-¢_$|.".-':-‘vi:--fa -‘.4,‘up‘:.:;._'_I.- 13.‘;Qd“~‘53‘-"‘3';K,‘- :.~.,.;.',_.-‘E _.,:,5.‘._-_'_ -.~=5%‘5..3,‘~‘..¢_:r'_.-:.-*,a .:§- .‘ if...r:-__, ..«:-',:-\.,é}.;_._'.=..-.-;-.§;,.-g"25"-""'~lulu 3?,‘ V815‘-3.::5“ ‘.56. ago -;_-._...'.~_ '._'a...:-,.,,=‘_3'3-I3: ‘in JD ITEMS COVERED FOR THE FIRST YEAR OF THE WARRANTY PERIOD __Defi ciency I Construction Standard J Buildcrfwarrantor Responsibility I 1.Site Work '"JExclusion 'foundation,utility trenches or 1.!Grading _ Settling of ground around Settling of ground around foundation walls,utility trenches or other filled areas that exceeds a rnaximurn of six inches fiom finishodgradccstnblishodby other axons on the property where excavation and backfi .ll_- have takon place that affect drainage away from Home.Buildcr. 1.2 Drainage " Improper surfiacc drainage.Noczmary gnadas and swalcs shall be wtahlished to provide proper drainage away from the Home.Site dminagc,under this Warranty,is. lirnitodtogxadeswithinlfl-footand swalcs within 20-foot of thc foundation of the Horne.Slandi11g orpondingwatrarshallnotrnnmha inflicsearmsforapcricdlongcr than24—~hoursafic1*amin,oxccpt inswalcsthatdrainfinmadjoining pzopcatziesorwhawaasumppump discharges.In these areas an exI;aadndpa'lodof43-hoursisto be allowed for watcr to diasipatc should be anticipated and is not ‘- be considered a defi ciency.N .3-0 .1 after an unusually hcavy ra'n=-g5=_'.._,_ .:-‘-'.._'._ \-o '-- 0 P . lf Builder has provided final grading, Builder shall fill settled arc.-as afl bcfi ng proper drainage,one time only,during the fust year Warranty period Bnildcx is that responsible for removal and mplaountm of shrubs and other landscaping (installed by Builder)afl octed by placement of the fill.§3 E3 '52.“5'.E.‘-:2"§2:E- of defi ned swalcs and' so _I :4 "'4'.,‘I K?“‘'.._ 1~E ‘: .,._:1 ."\. ;;u;:.-0' ‘\."."IL '*,'J'-' f1?.-...-.gm 1 t_,.n-11::tn1nngc O '§“¢_\|'I'.\<1 £1“?oonsidcmd a dcfoct.' landstrnped fi'oa:E Warranty Covcragc. The Homeowner is uwponsible for grading rs. made while d1a%~':«°-,'‘_'‘Builder In pro-vmt mnoffs and or when the Smurid is Grassed or landscaped areas,an-as which are.disturbed or ‘____'_&_ darmgcd dnc to,worlcon the ..e_.,;:75 property 111 oonocnng a deficrcncy.i,_,_‘-3.. "$3:-.'-'. Z»Cuncftu 2.}Cass-In Pfam Confgrgte-rn.-_....-#3,Basamcnt or foundauon cracks,other than Tiers 61"unusual a’;":.,:_-_;¢_l_?8.ll.S.oonuol joints.1‘ t __ 1‘-Rcplaocmuntoftnncsandlargc busl:Icstb.ate.xistodatfi 1ct1'me I-Iorracwasoonstmctndortnosc addodbythcfl orncowncrafi a occupancy or those that subsequently die an excluded from Waxramy .Covcmgc. Repair non-an-uctuml snacks in excess of U8-inch by/surfacx patching.These repairs shouldbcmadctoward theend oflhcfi rst ywr ofthc Warranty Coverage to permit norrnal stabilizing oftho Home by settling. S1nnclmg.'or pm-ldm'g atom;are excluded ' ‘ 'Y:.{1:1U'lI',Ifi'f-‘--0 -.--....u.f Dcfi ciemgy '- Cmcking ofbascmcm floor. Cracking of attached floor slab. viii ’. Cracks in attached patio Cracks in ooncmtc sIab-on- grade floors,with finish flooring. Unfl en concrete floufslabs. Interior pitting, Excessive powdering or chalking of interior concrete surfaoas. Sqaanation of brick or edging from concrete Cracking,settling or heaving ofstogps and stcps. I Constructionistandard Minor cracks in ooncrcic basevncnt Rn-pair cracks exceeding maximum floors an:common.Cracks tolerance by surface patching or othct .'5 exceeding 1J4-—inch in width or 114-xnmhods,as requimd. ' inch in vcrtical displacement are deficiencies. NONENO COVERAGE.NONE.'N0 COVERAGE is provided for th's clcmcm under Section VIII of. dzcwannnty. NONE.N0 COVERAGE.NONE. .’..this clement-under Section VIII of Cracks Ii1ntnnp1urc'or significantly Repair cracks as mquirread 5035 ..'.-;‘-§.'.'-“--.,_ impair the appearance or ''1. pcrfiamrancc of the finish flooring matcrial are defi ciencies. Except for basement floors or wbcrcafl oorarapordon offl oor has been designed for specific drainage purposes,concrete floors in rooms finished fivr habimbility ‘I garage slabs an:excluded from covczage under Secxzion VIII ofthc Wnrramy. ft’-s.‘~-,‘ 4-r*‘-V‘-I7.*."-. step.. .3»?c in gm-.-ss of114—i:nch are _a existing asclosely as possible.‘ .N0 COVERAGE-NONE.'an:EXCLUDED FROM COVERAGE.See Section_VI’Il of Wanamy. 12 _Stoops,doclm,porches,steps,etc. A 3."M33037?.-« I Cracks in bdclc or stone vezncer Defi ciency :I Construction Sttnduird 2.2 Constructianmud Contra!Joints Separation or movement of concmtc slabs within the stmctun:at construction and control joims.'‘ NONE.NO COVERAGE.NONE. 3.!Um‘!Masonry (Brick, Block and Slang}_ Crag].-:5 in non—bca.ring ornon-Small shrinkage cracks running Repair non~stnIcturaJ shrinkage supporting walls.through masonry and mortar joints excess of I/4-inch by pointing are not unusual-Cmdcs in uxcacss Repairsslmllhcnnacnearthcuu. of U4-inch in width arc firstycarwnnantypcriod.. defi ciencies. Cracks in hearing or Small haifi ine cracks that do not supporting masonry walls afliact the amctmal ability of above grade.masonry bearing walls are not unusual.Cracks in cxoc.-as of 114- inch in width are Cracks in bascrncn!and Vcxfi calordiagomlcmcksfl zatdo foundation walls.not affect the structural ability the joints of musomy walls are l_' common but may occur.C " '7*“ycarofWa:rantyCovt:rngetope:mi1 Hotnctostahiliacandnoxtxmlsmlczrnnm occur.Builds:‘snot rcspumiblcfixcolor variations bemrenm existing and new mortar. above grade. 3.2 Stucco and Plaster * Crmaking or spalling of stucco Hairltnc In stucco or cement Scrape out ctacks and spallod an-.=a5.Fill andoezncntplastcri "'~_-:_;common espocialty 11‘with cement plaster or stucco to numb finish and color as close as pnssiblc. NOTE:Builder is not rcspon_sfi3le for fnilun:to match color or tczctum due no natureofrnntcrial.A up.mcksgrca12erti1anIf8—ind:gin width or spalling of the finisl1_ surfaces are dcfi cicncics. .13 F I .BuBdc'I'-Iwalnantor.Rcspqnafl 1iity"="‘1‘=f o 5 Concnem slabs within the strucnuvc are designed to rnovc at construction and control joints and am not dcficiwcics.The Homeowner is responsible for tmintmnncc of joint material. F Deficiency 4.Carpentry . 4.}Rough Carpentry Floors squeak,due to impmper insmllarion or loose subfioors. .".'.’!"‘;‘."3?.’.!,‘..*’».’-’s1§2 I ‘-1.’ Uneven wood framed floors. Bowed stud walls or ceilings. 'V dcficiemieégg -'‘.15.’1-..,-‘..I- Constructicm Standard I1 Loud and objectionable squeaks Builder will mfi asteu any loose subfloor or Floor squmlcs may occur .whc:n'a caused by imprnpc:insmllation or take other corrective action to mduoc subfloor the!has come loose from loose subfioor are deficimcics,but squeal-Jng to thc cxlrznt possible a totally squeak-proof floor cannot reasonable repair capability without of a pcrsovn and rubs against the mils beguamntecd.'removingfiooran-dcciling finisbes.mm hold it in place.squeaks may also occur when one joist E dcfl ectcd J while the other mcmbas rctmin‘.."'"-=' ncquires the Builder to a u3:':._,"?'-3'5-,~’fig 0-and ceiling fimshm,E1.- ;-'flu‘' 5 . Wood floors shall run have more than lid-incbridgcordeprcssion within a 32-inch mcasxrcumt parallcllothejoisngorlmvcatotnl slope in any direction exceeding 1124-Oofthcroonnwidthor -I'll (i.c.'a 10'0"wide mom shall '?.'?."~:‘§-_be out of level by more than -5,inch).‘- All imcrior and '3?9535985 118% tbcfinishstlfacéfl ‘\___M 3:.%lbcoonuctedtnn::c‘.the I334 D6 Visible 30 3-‘5 10 E_fished surface.W%};or <«:---~ U2-inch 03'V611‘! allowablcstnnclard. 5 Warp':ng,check_ing,cir5p1itting Minorormmmmwma&m ¢or wood fi'n.m'mg is mate1‘iaJisafi cc:le:d,Buildca'sha fl :epair, its -intended purpose is a_bq;§1wnasthcwroodd1icsomm1d rcplaocaraiflmthefinmemanbaasis‘iiotconsiduedadcficicx:cy.A required. I..that E ma.. ofthemcmbcroranyapplied _surfacc matr:n'al is a dcfi cicncy. 14 l Defi ciency J Construction Standard I Buildcrlwnrrantor Responsibility I Exclusion J Exteaior shcaming and Sheathing and subfloofizng Builder shall repair or replace subfiocring subflocring which dclaminatcs dclaminating or swelling on the or sheathing as rcquircd.Rcplnccmcnt of ‘5' or swells.side that the finish material has the finish materials,when ncccssary,shall ' bccnapplicdisadcfi cicncy.bedonctomalchfi ze existing finish as _closely as possible.. Wood frame walls out of.‘NONE.l‘~IO COVERAGE.NONE.Wood flame walls that are out of square.'square are not colsidcrcd defi ciencies. 4.2 Fmish Caijpentry Unsatigfamory l’ finished cxtz:n’or trim and clt:ITIE.'n1S and si'cliii'g""6?masonry,’“~"’-"3?‘ workmanship..which an:incxccsscf3/‘S-lnch,arc defi ciencies.In all cases,the exterior trim abutting masonry siding shall be capable of pcrfi yrniing its function In exclude thcclcznurts. Unmtisfi ctozy quality of ‘Joints between moldings and finished intcrior trim and adjacent surfacm than exceed U8- p.iuchinwidthancdcfctzts. Finishcxl woodwork and millwork is to be smooth and without surficc marks.Finished surficcs that r: 2 _~.S "w I.. aschccks,splits,andhammcr -#5 rnarics.beyond what is s misc .5;,.''expected in the industry faxposed nail heads in Material used to Woodwork.'8 tendency 10 I "'m“‘=‘i‘*'r ll 1:-~s-i~'--:9‘‘chup paint,5l1!lI1.,OT‘Vfl .l'Il.l5l1 where the surfiwe finish is not conducive or soml- nail holes filled because of the'..,.,_n _ccnsrdewd a defi ciency.‘-._;,'-'1’-"‘ thaihavc nctbcenfi llcd on in.-c as product.. .P3131153 ‘‘.. 5.Thermal and Mcisturc ~7' Protection -__.“t" 5.1 Waterpracfi ng Lmks in"basement cr s --a ‘skiing Take such action as is ncccssury to correct Leaks _caused by landscaping basene.-nandcmwlspacclea.ks,cxcqx improperly installed by the.fcundaticnlcrawl spam.,,g_:»-' whc:'cti3ecauscisd-etcnnincdtobcfl ic Homcownu*or failure by the result of Homeowner negligence.When:a sump pit has been installed by Builder in the affected area but the sump pump was not contracted for or installed by Builder, noacxlcnis‘rcqui.n:d until apmpcrlysimd puitxpisirtstallcdbythcfl cmecrwnerinan attempt to co1'n':ct the condition.Should the condition continue to exist,thm Builder shall take necessary action to OOTlBC1'lIl1tp=l'Obl6fl 1. .15 Homeowner to maintain proper grades are excluded fium Warranty Ccwu-agc.Dampnc$inbascrncm ‘andfcundaticnv.-allsorinccnuttn 'has:crnu1tandcrawlspaccfloorsis cfie:1ccm11icntcnewconsn1:cticn__ nndisnctadcfi cicncy. r Defi ciency l Construction Standard I Buikierfwu-motor Responsibility [Exclusion ,- 5..?Insulation _ lnsufficient insulation..Insulation that is not installed Builder shall inslnll insulation of sufliciem .around all habitable areas in thickness and m to meet the accordance with established local local industry standards.In the case of industry standards is e defi ciency.dispute,cost for investigating the’sufficiency of insulation and restoring areas to rriar condition is to be home by V ‘Horneownerifitisfi rilndthattire 2 - "‘="“'-“..‘."": -Sound trarmmisnion between NONE.NO COVERAGE.NONE. rooms,floor levels,adjoining oondommJ''nm units in a building,orfi omllrcstreetinto I-lome. 5.3 Venriiationand Moisture Control Inadequate ventilation A or Crawl spaces shall have adequate moistune control in com]ventilation to remove rnoisnne or spaces..other approved method of rnoistme control.Ventilation or other" moisture control methods shall be ‘ considered inadequate if then:'"' -damage to supporting ' insulation due ~ accumulation -"‘l mny condense.These and other similar conditions are beyond the Buildcfs oontrol. adequate heat and smsonnl Tcmpomry conditions may cause oondenmtion in crawl spaces that cannutlzleclinlinatedbyventilation andforvnporbnrrier.Niglrtnirn1ny ooolfoundntionwallsandprovidea otrnféaunfi caeonarhiehrmienuenny responsibility of the Homeowner- Builder shall investigate to determine The Homeowner is responsible for oausae,and make necessary repairs.kc-epingexistingvenrs unowructed-. Corrective action may include the inslnllnfionof;tnpe11ysi.zedlouvu's,Lom1lynppu'ovodandpropeI1y ven’s,vaporieInrde:',orotha'loeaHyoonsI1'ucted“boIroof’oroti1a approved matho-d of moisture control.altanntive roof designs may notArequireverrtilation,and where dune 'isnoentienoe''ofmoisturediumgekn supporting members or insulation, arenotdefi ciencics. Inadequate ventilation or Attics or shnl --. moisture control in attics or ‘ggrennlnfion t"W‘ ‘'".‘ roofs.4,,--élfifiaer :1 En '' Leaks due to snow or dri'ven_Improperly installed Iouvcm and Take neoemry stem to eliminate Properly installed lonvezs or vents rain thnoughlouvetsandvents.vents that permitpcnelration ofthe penetration ofrnin or snow under:normal may at times allow penetration of'elements under normal conditions conditions if it is determined the rain or snow under strong wind _are defi ciencies.,installation was improper.oonditionsand are not defi ciencies. 16 t of vents is line’ l....-:.. F 'Defi ciency I Bath or kitchen exhaust fans impmperly vented into attic. Waterleaknge finm improper ' =5 installation of -‘tdoorsfi or'--*-' 5.4 Sealants ‘ Water or air leaks in-exterio walls due to inadequate caulking. 5.5 Exterior Siding ‘ Delaxnination.splitting,or deteno'ration of exterior’siding. Loose or fallen siding. Siding is bowed. Nails hm stained _5.6 Roofi ng Roof or flashing leaks- Construction Standard Bath or kitchen exhaust fans that are vented into attics causing moisture to accumulate rmulting in dmnage to supporting members or insulntion,are deficiencies. anticipatedUndernormally 'oondin'ons,no water shall pass . bcyondthcimeiiorfnocofthcdoor or window unit,overfl ow into -room,or flow into wall cavity. Joints and cracks in exterior wall surfaces and around openings that nrenot propaly caulked to exclude the entry of water or excessive drafl s men defi ciency. Exterior siding that dclaminates, splits or deteriorates is a deficiency. Roof or flashing leaks that oocu: under normal weather conditions are defi ciencies. 1 Bail-dcrfwarrantor Responsibility [ Buildcrshfl llveniexhnustfilnstolhc outsidetooormctdofieiencies.' Builder shall repair atn-foutublc to Repair‘nndfor caulk joints in e:-rter.-or ":“"v"'."""";‘ surfiicesasrequiredtoeonectu _uiIde1'will repnirbowedsidingtomeet’--:If replacement of siding is Builder will match original material as closely as possible. I-lcmeownershouldbeawnretbattiienew‘finish’may not exactly match foe original surfeectexnmeoreolor. Builder shall correct by either removing stnim,painting,or smining the afi bctnd .aIea.Bnildcrsha1l Imiach color ascloselyaspon3ible._‘Whc:-epeilxtorssnin touch up afl leds the nnnjofi ty of 11::wall surfnee,d1cwhoIcnreashnllbercfin‘mhed. r Conectnnyrooforfi ashinglcnkstlxatare vaified to have oocumed under normal weatheroonditions. 17 deficiencies Exclusion 5 I ‘inthe condition is sidingiis not a defi ciency. Loose or inllen siding due I-Io=:rieowne:‘sn::_tion:v.orneglect,s1:_ch as leaning heavy objects against siding,impact,or sprinkle‘systems . repeatedly wetting siding,is not.a defi ciency. Bowed siding due to Homeownefs actions or neglect,such as bowing; caused by sprinkler system. repaxedly wetting siding,is not a. defi ciency-s “Nutumll transparent stains are excluded from coverage. What cause of leaks is detemlioed to result from seven:weather conditions such as ice and snow build-up,high winch and driven raim,such leaks an:not defi ciencies. .:)""\'-Io‘Ilf'jl"|[‘1f{I-D an .-op.-.|..‘.4_..__ "-:.:.-ll‘-.:‘:. ' .-.°_1-4,-- 2.!-‘.3 L1». F Dcfi cienqy Excessive opening at bottom of interior doors. the 6.2 Garage Doors ~*-.=..\m*,.&*;.*-:’~';..*.4‘<!-..W-r -uh-4-0-I....— -I.a\.a..oa-u .'.-..-_ .-.....u5..o. no-A -.-an-a-on--o 1 I . _....q- -o Garage door fiiils to operate fit properly. 6.3 Wood.Plastic and Metal Window: Malfi lnc fi onof windows. Daub}:’hung windows do not _s!ayinplaocwhc:n0pc:3. andScreem' Slam doors,windows and- screws do not opcmtz:or fit Pl'0P‘-'fl )’-- Passagcdoomfi nmrmmmroom that havcopmingsbctxvecutizc Izxzrttomcrfflmcdourandthefionr fInis1:nn1atc:r'inlit1v:::~cc::-.ssc:t'1'/:~ inchcs am deficiencies.Closet .f'do-orshavingnnopc-.:1i11ginc:xce;ss of 2-inches arc . ‘r "-~mc-—v._:~ andfi tthedc-oropcningwithinthc mn11ufncturu"s instnllalion tolerances are dcfi cimcim.Some entrance of the elements can bc 'expectedundahcavywca.flaer wndiiionsandisnotoomidaredu dcfi ciamy. Windows um do not operate in conformance with manufact11re-.r‘s design snmdartk am defi ciencies. Doublc permitted to moye within a 'rs,windows andscw.-.ns, 1:’installed,which do not operate or fit propcdy to pnzwidc the ymtnction fix which they an: intmded,an:considered defi ciencies.‘' ...I“ Garage doors that do not operate Make neocssmy adjustrncnis to meat ma.nuiiacnmcr"s installation tel no» hung windows are -J Consffi nction Stmtinrd Mnkcnoccwaryadjusuncntorrcplnoc doorto mac,-ttbcrequircdtolcmnoc. -.‘..'[.*st‘!.1?‘:*r":.-"§4".‘i‘i71.’M"l§I'!\.-.''.v 0COBSIR~' ‘n'_-un-_4.-..12-."A o ,I 0. inchtolctI.nec,upordown -_-'-M -1..-‘Q!Ir,..3'»!.;s a Build»;-.r shall adjust,repair,at rcpboc hnrdwarcasrequxrgad. Bfi ilder shall make forpmpcrfitand operation.Replace when adjusnneutcannatlaclrmie. 19 ‘away;v4.PlJ'4 '.-n.,,....--... .Exclnsiol-I ¢...'!5..-...r --I=.u.,.._p.... is determined to result from Buildcr’s or Build:-.r‘5 ’installation of an Windaw glass and framss will collect cundeamtion on the fi-an: andglnssstlrfnncwhmhunxidityaud tcmnnmmdifiamccsmcptesm. Cocuzlcnsationisusnally the result of tnuqaczmture/h11rnidily wnditicms in ttrcfionzuc. MissingscIecns,rip:sorgougcsi11 thcscreenmeshuenotwvcscdby thiswarrnnty. ‘:i::.'.l:.\.: caused by poor workmanship which may be manifested as blisters in tape,excess compound in joints, markgorofl aubl '‘= acceptable tolerance"and touch up paint onctimeonlytornanzhasclosclyns possible.Such conditions shall be reported ncartbr.-cod offi xcfi mtyearofwarramy Covcxngetoallow fixnormal seuluncntof Home. instillation.“listys " E57533_1 dcfi clmc -"Nailpopsan:adcfool thcmammgzsof 20 hands are not oomidcnt dcficioucies. F Deficiency Construction Stuidnrd I Buildcr/Wlrrlnlor RP-Sponsibililyo l Exclusion 6.6 Weatherstrippingartd _ Seals Drafts mound doors and \l.{cathe:-shipping is roquimd on all Builder shall adjust or oomact poorly fitted windows.cloorslcadingdiroctlytotbcoutsidc windows or doors,or poorly fitted fiom a habitable area.Some wcathcmtripping. ilifiltI'B’(iO11 is normally noticcablc around doors and windows, especially during high winds. .~.,.<r-:.."-..:..‘*-.~..*::-.r-'1.;'.,7,13:Exowsivc,‘fromopcoingsinpoorlyfiued "’“’-*-~~r doors and windows,or poorly fitted‘ ‘wcathczsuippingisadefi clcazcy. 6.?’Glass and Glazing Clouding and oondcnszalion on Insulated glass that clouds up or Builder-shall replace glass in :a'’.-'’ insidcsurfiwcsofinsulaxnd hasoondensgztiononllreinaidc withwindov»-andglm;-—."=" 31883.,surfaces ofthe glass is a dufi cicucy.' 7.Finishes 7.!Latin and Plaster Cracks in plaster wall and Hairline masks are not unusual. ceiling surfimm Cracks in plastcr wall and ceiling ,surfim exceeding 1_fB—inch in widlharcdefi ciezncics. __*_ 7.2 Drywall 4"_ Drywall cracks.Hairline cracks am not In:~:13 .fl Cracks in intnrior gypsum hoard ‘,"' other drywall 4 of film ycarofwtmxsty _ *é“.r}_»,....=3"l Defects in drywall finishes sngm FE! F Deficiency -if . ?.3 Hard Surgface Flooring (Flagstone,Marble,Quarry Tile,Slate Ceramic Tile, Et_c.) ‘ Floor cracks orbecomesloose.. Cracks appear in grouting of ceramic tile joints ‘or at junctions with other matcrial such as a batinnb,shower,or coumcrtop. 7.4 Resifieni Ffaarfng Nail pops appear on the surfiwe of resilient flooring. ‘Dnpressions or ridges app-mr in the resilient flooring due to subfloor in'cgu1a:'itir:s. Resilimt flooring or --2 ‘;_r adhesion. Saunas or shfinkagc pps mow at rwilie-nt flooring joints. L -Construction Standard ‘I "BIiild¢rfW3n1fi t0f'R=5P0n5i11i1‘ii3':1§i}j-5?' 'hardsurfi aoedsnnitnry flooring thai .c1m:kc.dorloo9cfinishrmtnrinl. ~' Ceramic tile,flngslnne,or similar Builder shall replacc,reset,or cacnrect the Clnnkilng and loosening of flooring caused by the Homwwncr's ncgligmoc is not I deficiency. ‘Builder is not rcsponsiblc for slightcrncksorbocomtzslooscisadcbnzt- Subfl oor and wallboard an: an V-vI.-DLn§ol¢-‘-M.. pnfl erm ofrigid,and suitable to receive finish. Cracks in grnutingofounmic tilc Buildushnll repair _ joints are deficiencies.Rcgrouling one fimc only ~';_-"" of these cxacks is a maintcnancc -Warranty -1o.-__'-"-‘ff-= responsibility of the I-lmnwwncr " after the Bufl dcr has negroumd once.i _ Readity apparent nail pops =§,_;3'?:.;'r._' 'i '-K‘-;'.\' .VI '.—or rap ...,..,u,_..__,t._ I '.': -3 defi ci .‘_Ii :3 or ex -7:: Homnownc: instnllaticmpafotmadbyoflaczs. Builder shall repair or rcplacc tesilient flu-oringorbascasmquirngl Builder isnot rcspansible for discontinued pattctm or in rcsilicntfloor covering joints are-. dcficicncics.Where dissimilar materials abut,a gap in excess of 3/1 6-inch is a defi ciency- Build:51131]inke corrcét the cause of the defi ciency.Builder is not tcsponsibic fioi discontinued pattcms or color variatiom of fie-or covering,~ 21 -r'l."V5A‘I¢£)d I0.I '-'»>,.,-',_. I Defi ciency I Construction Standard ]Bnilderlwnrranior Responsibility"1 Exclusion 7.5 Finished Wood Fioorirrg _ 'Cupping,_open joints,or Opcnjoints or separations bciwocn Builder shall d-ctenrrinc tho cause and if Wood fiootsamsnlhjocttoshrinkngno separations in wood flooring floorboards of finished wood the result of a clcficicncy in workmanship and swcl]due to seasonal variations -flooring shall not exceed U8-inch or mats:-inL correct on:time only.For 'in thc humidity lcvcl of Home. in width.Cups in strip floorboards ropairablc defi cicncies,rcpoir cudrs by Whfl cboards may be installed tight shall not exceed lflo-inch in height filling and refinishing to match the wood together,gaps or separations may ina3-inchnmxirmnndisnmoc surfau:asclosclynsposm‘blc.Fornon-nppearduringhcatingseasomxor vdlennx-.a.wrodperpcodicularto rcpaimbledcficicncics,rcplaocand finish porio'ds'oflowhumid.ity.G-apsor tbelengthoftheboard afl bctod area to match rctnaining un-.scpamtirms tint close during noo- ‘IA’:o...4. arr.-notoovcmdbythiswarramy. ?.6 Painting _'.. Koo!and wood smins appear Excessive.knot and wood stains B through painlon exterior.that blood through tho paint are -''.- considcrod deficiencies.-—_*_ .~.' Exteriorpaintorsmmpoelsor Exnzriorpaiutsorsmmsthatpeelg tkztcriomms.deteriorate during the firrst year off: ownerstup are :__' '*‘=‘<£:.. T: fgtlzewncwly repainled surfaces will not beyond the original Warranty Painting required as corollary n-~ repair because of other work.""’":~.‘.'I'';''%.;.'.'''_’‘C-9 . alias as ''when th:marlin:is sulgiect to various caxpomrcs (e.g..:ocean,lake, _rivufiom,heavily wooded areas or painted or fiactory surfaces. F Defi ciency 1 Construction Standard 1 Bllilrdtrfwarrlntorllcsponsibility I Excursion J Deterioration of varnish or Natural finish on interior Builder shall refinish afi cctcd areas of Varnish-typcfi nishcsoncxtcrior wills lacquer finishes.woodwork that deteriorates during natural finished interior woodwork,deteriorate rapidly and are nor’ .the first year of the Warranty matching thc colorasclosclyaspomiblc.covercdbythcwan-anty. Coverage is a defi ciency. Interior paint coverage.'—Wall,ceiling,and trim surfiices Builder shall repaint wall,ceiling or trim ‘that are painted shall not show surfirccs where inadcquatc paint has been through new paint wlacn viewed applied.‘When:the majority of the Will or 1-7 '-“-1*-"=-r-=i*=’f’-':“-‘r~;*:r-%=‘*.1::.;'-.=—<2»-vwe.,-=~h:‘;.r.<s-:.~.».=r :«=..1:T_a9£13::.l -.§r.f§’..d_'110111131 light!-I18 conditions. I brmklinc.Builder is not rcqu° rcpaintancntirc room unlcssall 'ceiling have been a.fibctcd_ Paint splatters and smears on Paint stains on porous finish surfiaces.which an cxcessive,that detract '‘' from thc finish,and which cannot = be removed by normal claiming L "1'"~[ngjjjtunncg and an methods,are considered deficimcics. 7.7 Wall Covering Peeling of wullcovcring Peeling of wnllcovcring is 8 installed by Builder.deficiency,unless it is due to the - Hcmccwne:r’sabuscorncgligu:-cc. lvlisrnntching in wnllcovcring Misirratching wall covering pa 3 pattern.-over a huge area that sev — '-detracts from its intended pn .."-- Tbc Hornccwnc:shall insure that the. surfircc to n:-ccivc wallcovcting is suitable and assumes full Icsponsibility should lumps,r_1'dgcs,. Lumps and ridges and nail pops in wnllboartl that app-mr afi cr the I-lomcowncr has wallccwcrizlg installed by others.and nail pops occurat a larcr date.. 7.8 Carpeting Sr.::ur'5inCaIpct.Builder shall correct to climinzrtr:the‘Carpeting material is not covacd scpamtion.underthewarranly. Carpeting comes 4. excessive strctcl11n'goccurs."' 4-__5 _Coverage.and surface over which it is laid and -''is not a deficiency. 23 l Defi ciency Exclusion -Cmcksinmasomyhearthor 8.Specinlties 8.}Fireplaces Fireplace or chimney does not draw properly causing smoke to color home. A consimctod fireplace or chimncy shall fimction correctly.High winds can -cause temporary negative or down dmfts.N@r.'rve ,‘obsiéuaidim Iéuéh as male steep hillsides,adjoining homes, and interior fiirnnccs.In some caseaitnmybenootnsnrymopona window slightly to cxcatc an cfbctive draft.Since negative draft conditions could be ttzmporary,it is nootwry ‘Ibr the homeowner to substantial:the problem;to tho Builder by oonstruding a fire so thooonditzion canbcobocrvocl upon improper oonstmction _ fireplace,the Builder shall necessary steps to correct the problem, Newly built fireplaces will oftm incur slight amounts of separation. Separation that cxcaoods 1/2-ind: fi‘=om the main structure in any 10-_ foot vertical measurernont is of defi ciency.“ Chimney sepamtion from - structure to which it is attached. Small haixlinc cracks in "4; joints resulting from shxinkagcfacing. 9.Equipment 9.}Kitchen Cabinets and Vanities Kitchen:and vanity cabinet doors and drawers “.5 pans.. Builder shall repair or mplaoe laminategl surface oovotinghaving cracks or joints exceeding the allowable wicl1.’n_- Suzfi zoc Iarnimtzos of vanity cabinet counts-rtom. Wafi aagc that oxooods lr'4-in-':.l1 as nnasured from the face of the cabinet frame to the furthczmost point of warpagc on the drawer or door fi-om in a closed position is a defi ciency. Builder shallWarpingofkitchenanddrawerfromas required.cabinet doors‘and.drawer 24 1 Construction Standard I Builder/Warnntorfl esponsibility I I II properly‘designed and Wbendetenninodtherrxalfi lnctionisbasod When it is dcamninod that the of the fireplace is properly designed and take the ootcstructod,but still malfunctions due to natural causes beyond Buildcfl s ooutml,Buildu is not responsible. ‘'1 .~-..|..~»"u" Heat and flames from ruormal fires- can cause cracking of firebrick and mortar joints.This should be expectnd,a.n-dis notcovezodbythis Warranty.‘ I:.'-E‘:.-....... E Defi ciency Gaps betwnen cabinets,ceiling _ and walls. 10.Mcchnnical Systems 10.]Plumbing 147.2. Warranty. "Defective plunibing fixnn-es, appliances or trim fittings. H12 Water Supply Stainilag of plumbing fixtures due.to high iron content in W£ltE:1'. Noisy wator pip-ms. .10.3 Heating and Air Conditioning Inadoqnnte heat. I Construction Standard I Buiklerlwarrantor Responsibility 1 Builder shall make noocssary adjustnacror of cabinets and oounlcrtop or close pp by means of moulding suitable to match that: cabinet or oountcrtop finish,or as closely as possible;or other aooepmble means. Countenops,splash boards,base and wall cabinets an:to be securely mounted Gaps in excess of _U4- inch botwmn wall and ceiling surfaces are a deficiency. A valve or faucet leak due to material or vkorklnansfl““p defi ciency and is covered only during the firs!year of the Buildcr shall repair or replace the leaking "iizi1'c§e{‘o1‘~‘\;i-iilske." Fixtums,appliances,or fittings arc to be judged according to the rnnanuholurcfs standards as to use and operation and are covered only ‘F.- dunhg the first year of 'the ' Warranty..=‘ or fitting that is outside of a NONE. Some noise can be cxpected tbcwatm pipcsysuan,duct!)I_-f flow of water.“Water as "§.f“‘-’-*§§___ the Supply systzrn is a dcfi ci and is oove:rodVonly during the u -‘=;_ ml‘of the Warmnty3’'.,«‘i!=—..,“..._-—u--'.-;_.-_. M”‘'r.._.“.-_'.;’-32-=."-'.‘E.—._"E:i A"-'.'a —-I-"F:'.-.'*-.-7.‘-.=.:i.'7-‘, A ofproduing an inside -m 5-___t of at 1 measumd ";_'s""‘= '5'.-dc;shall comacl heating systnm as to provido _- 6;‘! .a—?-_ iul}ill 1;.=1 ':r-‘.___.-;_.".3 :'.‘.r_...I'-_-_3."- '.-.',"-:-.3‘-4.-in'4._{__.:gauge-I -‘o '1-r'r:"-'ome.gi.tion of Home and location__-._T-‘u -will also provide a oontnnliod by a singlc thcznnosnat for on:or man floor levels standards as defined by the Manufacturcr Exclusion Lmkagc caused byworn ordcfcctive Maintcnanoc and ocauneuf of the W&lI'.l'is 'the 'Homoownor’s Noisesfi iae to eaqnnsion are not oonsidcznsd deficiencies.’ The Hmmoume:is row-onsiblc for balancing dampers and registers and for rna.l-Ling other ncocssary minor -adjusnncmzs. __Defi ciency 1 Construction Standard I Builderfwnrrantor Rcsponsibility I Exclusion Inndoquntcoooli11g.'When air conditioning is provided,COIIECI cooling system to most the The Homeowner is rcsponsflnlcgfo the cooling systtzm is to be capable constmctzion standard temp-cmtun:balancing dampers and registers Inn: of mnintaininga tclnpcraturc of '78-ioquirotnenits during the first your of for making othtz ncoocsary rnioo dcgrces Fahrcnhcit as Incasumd in Warranty Covemgc.adjustments. Ductwork and heating piping not insulated in uninsulatod mm. Condensate lines clog up. Improper mechanical operation of ovaporativc cooling system. Ductwork noisy. _11.Electrical System NJ Switches and‘Receptacles Fuses blow,0!’._CiIGl.l.il breakers .'-kick out.'' -.pcnods when are run in uninsulntecl crawl the cantor ofeach room at height of five:for:above.the floor,under local outdoor stmnnct design conditions.NOTE FOR AIR Thcrottwmnbat the‘ tcmpexaturc tiscs above the design tcmpcmtimc,finorcby raising the tcmpcratun:in Home.Orientation ofHomc and location ofmom will also provido a i for one or more levels. Ductwork and beating pipes that spoons,gamgcs or attics arc to be insulnuatl.Basununs are not _ “unjnsulatod arms“,V and no.,g..,. insulation isroquired.W 1‘: The I-iomcovmcr is responsible fiCondcixsatclincswillclogcontinuedoperationofdrainlincs.normal conditions. Equipment that ''- properly at lcmperatu "ij.w__ set is a defi ciency. ‘bu _.,_,-1 - ‘fIe§gncd during the fil‘Sl year of the _i_,,._Wan-nnty Coverage.-- Of eliminate noiseintliectuctwori-L. nndts _« ' ‘operationis a b‘Builder shall check allwiringandrcplace wiring or bncaltor ifit docs not’pa-fon-n adequatclyorisdzfocfi ve. deactivate under normal usage, when nasal or replaced an: defi ciencies during the first year of the Warranty Coverage.’ 26 .--.'‘.'t ‘..'.'."?!.’,I:¢‘Jr’:f':t'-‘211?!"'5‘-t“n_'rk1.':_'-r,“=_‘;I _*Defi ciency I Construction Standard 1 B““*kT’“’l"‘Bi0l'9«¢3P0I1S'l'bi|i13’‘I Exclusion ] -'exterior walls may produce a siigln airfl owwbcrcbythccoldaircanbe _drawnfl 1rough fl 1coutic1irnton room.This pwblcm is normal in ncw _ ~,1-lotneconstruclion. Malfi mc fi ou of eiecmca]All switches,fixlures and outlets Builder shall rcpair or replace dcfizcfi vc A _)__out!c13,'svuri1ches,orfiJrt;1;vcs.which do not operate as intended switc:hcs,fixmmsnndout1ets.. . during the fust year of the Warmnty Coverage.. I {.2 Service and Distribution Ground fault intmmpte:trips .Grou.nd fault intcrruptms arc Builder shall raplnce the .- fi-equcrrtly.-sensifivc sa:fi:ty devices installcd defective during tho fimt 3:7:-m 'intothcc:lcctn'caJ systnntopuvvidc -‘ pmtnction agninst electrical shock. bctrip-pczLivcrywsily.G-roundfault outlets thal do not opcmm as intmdead are considered ITEMS F 'Defi ciency"-'- 10.Mechanical Systems 1- 10.!Septic Tank Syszem SW59 535*’-'-ms 535 *0 °P°T3*3 33P"I5C System should be cape pI0pe='1}’.propcdy handling noxmal fl -*:_‘.__ household em-wnt sygggn ag.m;-dgmc a d‘:-.ficicncy.The follovfing art 0;19531 mquj,-¢m¢m3_canmdercd Homeowner ncgllgzncc or ~ ~%%]:I-mpoxd by mm‘county’of mm! a gwfi nh1gagmcics_Buuduis almnm smmltaneous use;h.)_connccuon of Pr sump pump.roof drama or backwnai: .I ~‘"' B““f‘°’3 °°““-‘°‘='='°“}“*“8 _H°m°°"€”°‘in the systnm;:1.)addition of harsh Ch“-n8°5 1'-'*S1'°‘““'d“'““’-‘J’“bk:01'9'-‘ha andexneasivcamotlnsofbleaclleéior 3¢*3°fm113f¢-.dminclcancrs;c.)nseofafoodwast: 'disposer not supplied by Builder;E) placunsntofimpcrviotlsstufwesover tbcdiqnsniarcais)allowing vehicles .todfiveorparkmtrflndispoulmu; h.)fnilm'ctopen'o_dical}yptm;>ov.lth: septic tad:Winn rcquined.S4.-wag: pumps an excluded under Section Vlfl ofthiswammy. 27 u ‘:."..:{“Z.‘.‘."!_‘."§..=.''.-.-c .- ' ,-. ..-i Defi ciency ]Clunstruction Standand I BI13d¢Tr'W!I‘I”IIlt0I'Rtsponsmility ’-|Exclusion j Dmfi s from electrical outlets.NONE.NONE.Tb:electrical junction box on -'exterior walls may product:a sligln air fiowwbcntbythcooldaircanbc drawn through the outict into n room.Thisprob1cmisnormalinncw '-Home construction.' Malfunction of clecztrical All switches,fi.xI1n'cs and outlets Builder shall mpair or replace defective '' outlay-.:s}yjt_::‘l'1_esb,’or during the fixst year of the Wammty Coverage. I I2 Service and Disrribufi on Gmlmd fault intmmpta trim .Gm11i1d fiault intermptczs am Buildar shall fi-equcrrtly.sensitive safiay devices insmllod defcctivc during the ’into the ciectrical system to prmridc Wm-Imy. protection against ulcctrical shock. ‘These devices an:sensitive and can E.--"' be tripped my wsily.Ground fault V F _outlets that do not opcmu:as mmadead are oonsidr.-red ‘_defi ciencies. ITEMS CO\j_ERED FORT]-IE FIRST TWO YEARS or H . If 'Defi ciency-*-I Constmctihn Stindnhd g 4,,T IOJ Septic Tank System:_ Septic systems fiafl to operate Sqnic system should be cape properhr.pmpcdy handling normal fl -‘I ?':"l-"" household efiiuent. :‘:.::'-;.-II rrhl‘-\\';'r :Ari‘.- .-.,..,inmeapcmfion offi r :na:am':1)m?mw1:e# Hfi imposed by smtn,annual or local 3”‘“‘5"“m"=-h‘)“°""“‘”3 W‘; __.' g°V "m.]‘g "EH :5’Bug“,15.3150 M sump pump,roofdmim orhackwnab ,£_._;_.-'"~~Builder 3 control, ucglIgcndc,sh1:se,fie:ang,sml saturation,ch,,m;ca1s_gmes 9,clufing gwn_ °hfl3S°31“ET°“5d“'31°'13bk'-:°T°fl3‘1'andexsesivcamounsofbleactcaor 3°15°f“31“m dminclcamra;c.)nseofafoodvmst: ‘A disp-oaer not supp%ied by Builder,E}. placement ofin1pc1'vious::.IIfu:eso1a-cr -' the disposal area;3,)allowing vchiclas .todziveurpalincrvcrthedisposalarca; h)fnil1metopcIio_dica!l}vp1m;:outIn: azptic mi:whsn rcqlximd.Sewing: are excluded Section Vfl lofthiswnn-nnty. 27 u--u.I _:-.in...‘-;~\.»',.:‘.‘It _-,-_.‘ql.5__5£‘d '5».--o o ....~.1....“.¢_..,..;-. I:__Defi ciency 10.2 Plumbing Plumbing pipes freeze and burst. Leakage fium any piping, Stopped~up fiximcs,and sanitary drains _mc 10.3 Water supply Water suppiy system fills to d-diver water,or ptesurc is low. I 0.4 Heating and Air Conditioning Refrigerant lines leak. 11.Electrical System I 1.}Elecm'caICona’uc1ar.s ‘ Failure of wiring to umwy its designed circuit load to switches and receptacles. I Construction Standard l Buildcrlwnrrantorilcspomibility L Exclusimi at" Drain,waste and water pipes an:to Builder shall COITBCI the condition Leaks occmring due ‘to be adequately pI'0teC1_:Bd to prevent rcsponsiblc for broken:pipes by fi-arming,Homoowm-::"s neglect and I‘€:‘31Iltfl.l!‘l fieczing _and bm-sting,during and repair piping clamagod. normally anticipated cold wcaiixet. 'Lcaksinany wnstcnzcntandwutcr Builder shall make ‘éaeccssary I-quail:_,-_ piping are dcfi cicncies.eliminate leakage. All scrvicze:connections "" municipal water min or ” '-‘-.}3ufldcr’s "2'. la. #3 "u ."‘N2 ..ul.‘-r:fl _.._'g -I 00'9!’--u‘-'_him.NOTE:L ii’?cnniiol,the Builds:is not rv:-.sp-ons1'bic. Builder shall rcpeir leaking lines ma ‘recbaxgeflrueunitasreaquimcl - Builder shall reattach and rcr—secun:all separated or unattached ductwork. canying the designated load,for iifilstocanyflicdesigiiioad normal residential use to switches ' and receptacles and equipment is a defi ciericy--' Wiring that is not capable of .BuiIdcrshallchc€:k'wiringand1fepluccifit dumngc.are mi B'uilder’s responsibility.The I-lomuowncr is tcsponslhlc to maintain suitable taupe.-rnmn:in Home tn p-revt.-at I-{mm which an:ptriodicallym --‘such as stmuncrfiomes,of" on piping docs not ,cxocp(wbcn:pipe Se.-mrxs,fixlmes and drains that are clog:-.-cl through the Homoowncfs negligence arc not ccwcmd under the Waglnty.