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2006 Andalusia at Coral Mtn - CC&Rs DOC # 2006-0197684RECORDING REQUESTED BY: FIDELITY NAIIONAL TITLE COMPANY WHEN RECORDED, MAIL TO: JACKSON, DeMARCO, IIDUS & PECKENPAUGH (FS1) 2030 Main Street, Suite 1200 Ovine, CA 92614 DOC a.2006-0197664 ea/2vat0R Conforud Copy Has not been eampared mlth oNglnal Larry W Uard Rssassocr,CountyRClerkldeRecorder (Space Above fer Recorder's Use) MASTER DECLARATION OR COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS FOR ANDALUSIA AT CORAL MOUNTAIN 3607-290 MCCR& 539251.12 I/10M MASTER DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS FOR ANDALUSIA AT CORAL MOUNTAIN IF THIS DOCUMENT CONTAINS ANY RESTRICTION BASED ON RACE, COLOR, RELIGION, SEX, GENDER, GENDER IDENTITY, GENDER EXPRESSION, SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, GENETIC INFORMATION, NATIONAL ORIGIN, SOURCE OF INCOME AS DEFINED IN SUBDIVISION (p) OF SECTION 12955, OR ANCESTRY, THAT RESTRICTION VIOLATES STATE AND FEDERAL FAIR HOUSING LAWS AND IS VOID, AND MAY BE REMOVED PURSUANT TO SECTION 12956.2 OF THE GOVERNMENT CODE. LAWFUL RESTRICTIONS UNDER STATE AND FEDERAL LAW ON THE AGE OF OCCUPANTS IN SENIOR HOUSING OR HOUSING FOR OLDER PERSONS SHALL NOT BE CONSTRUED AS RESTRICTIONS BASED ON FAMILIAL STATUS. TABLE OF CONTENTS MASTER DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS FOR ANDALUSIA AT CORAL MOUNTAIN Page ARTICLE I DEFINITIONS AND INTERPRETATION 1.1 ................. Definitions—— 2 12 Interpretation,........ - --- ---- ---- -2 ARTICLE 11 MAINTENANCE COVENANTS 23 AND USE RESTRICTIONS.....,-... Repair and Maintenance, 13 2-2 Land Classifications..... .13 2.3 Single Family Residence- is 2.4 Further Subdivision--- 19 2.5 ... . ......... Resale and Rental -..-:-.. 19 2.6 ..... Business and Commercial Activities.. . 19 2-7 Nuisances...,-,. 19 2.8 Signs. 20 2.9 ....... Parking and Vehicular Restrictions, 210 .... ... Animal Regulations .. 23 211 Antenna Restrictions ............ 2.12 Trash..- . ... ....... -.24 2.13 .... .. .. Owner -Installed Improvements .25 2,14 .,--,-.,.,,._,. Mechanics' ... .. .. -.26 2.15 Further Subdivision.- '27 2.16 Drainage.-.. - .- .. ...... 27 217 -11, ... ...... . Water supply System 27 218 View Obstructions ........ 29 219 Solar EnewSystems....,..,-'..-.-' 28 220 Rights of Disabled-- .... 2.21 Temporary Buildin ......29 2.22 Master property.,,,,, ... .. .. 2.23 Drilling-. ...... 29 2.24 . ...... , Stormwatel Pollutant Control 29 2.25 ......... Post -Tension Concrete Slabs.,... 29 ARTICLE III .. .. DISCLOSURES . . .............. ... - -30 3.1`No . .............. Representations or Warranties 12 Private And Gates 30 3.3 ... .. .... Grading ....... 34 Property Lines ...... . . .....31 35 Change in 3.6 No Enhanced Protection Agreement.-... -31 4- 3607-290721ccits%M8351 12 1110106 3.7 18 3.9 110 3.11 312 .3.13 3.14 3 15 116 3.17 3.18 119 3.20 3.21 3.22 3.23 ARTICLE IV 4*1 4.2 4.3 4A 45 4.6 ARTICLE v 51 5.2 53 54 5.5 5.6 5,7 5.8 5.9 5.10 5_11 ARTICLE VI 6.1 6.2 6-3 64 TABLE OF CONTENTS (continued) Page Coral Mountain Regional Park.._. ....... _ .... ....... ...... Lake Cahuilla Recreational Area and Coachella _32 Dikes Nos. 2 and :-_32 Rural . .... .... . 32 Electric Power Lines . ..... . -___32 Prior and Existing Agricultural Use .33 . . ....... .. .... ... Water Line.,____-, .. ..... ;.- 33 [it igation and Golf Course Property pl, 101ity- ....... .33 Water Wells ....... ...... .. .. 34 ItilogyatLsQuetta .. PGA 34 Existing Homes and Continuing Development.....-,.... 34 34 Goat Farm .... ........ .. . 'Disclosure Regarding Raoquet Club And Fitness Centel. ........35 . .......... GolfCoiftse Disciosutes_ _ �. 35 ....... . Notice Ol'SUPPICIRCM111 Real Property Tax Bill _36 Additional Provisions.... _38 ..... . .f ........ ... ... ... 38 THE MASTER ASSOCIATION ............................ . ....... . .................. 38 General Duties And Powers.. Specific Dudes And Powers ,.�_, •. Standard of Cate, Non-Liability..,,,. .. .. ............ _. 39 .. ..... . ............. Membership.-. 45 ,•47 Voting Rights ....... Actions Subject to Declarant's Veto .49 T.. ---------- ........49 DESIGN REVIEW COMMITTEE...._.......,::. ...... ................... ; .... _.. 50 Members Of Committee Powers and Duties.. ........... ..50 7 .... .. p 'evieivof'plaas and Specifications:: .......... ...... so 54 Meefings:and Actions of the:Desigri Review committee_...__,.. No Waiver of Future Approvals...::::.. ....... ..... 54, Comperu ution , of'Members.... ...... a of Work ._ _54 .. ....... ........ 55 ... ... .. . 77 PROPERTY EASEMENTS AND RIGIITS.... .. ....... . ... . ... ........... ... 56 Right to Chant Easements 56 ...... Delegation ofijse.� .......... .. — 59 .. ... Right of Entry ........ ___ ....... ... ... 360?-290?2XCCRs153&351 12 MOM TABLE OF CONTENTS (continued) ARTICLE Va MASTER ASSOCIATION MAINTENANCE FUNDS AND ASSESSMENTS......,._,_-.._._ 71 72 7.3 74 T5 T6 71 Page ...- ...... 60 Personal Obligation to Pay Assessments., Master Association Funds ....__ ... ... . 60 Purpose of Assessments.: Waiver ofUse. ........ 61 Assessment Components, Rates and Exemptions ....... 61 Commencement and Collection of Annual Assessments .�_ 61 Capital Improvement Assessments.... 65 ARTICLE VITT INSURANCE............._..„...-._._. 8.1 .......... .............. ....... Duty to Obtain Insurance; Types.,___ 66 82 Waiver of Claim Against Master Association __4 66 8-3 . Right and Duty of Owners to Insure.. .. .. .. ... 67 8.4 Notice of Expiration Requirements......,., _67 8-5 .. ...... ....... ............................... Trustee For Policies_ .. 67 9-6 ... ........ . . . ............ ....... Actions as Luster...._ -.68 8_7 .. ....... Annual Insurance Review.... 68 81 Required Wsuver._. 68 ..... ..... ... ...... _,68 ARTICLE IX DESTRUCTION OF IMPROVEMENTS 91 Restoration of the Properties . ......... . .... . . .... . .... _69 9-2 Damage to Residences -Reconstruction__ _� 1-1 -.1.'. .1, 1—- 11 I_— _.- 69 9-3 _ * ... . ..... Destructionof Improvements for Condominium Projects _70 94 Notice to Owners and Lis;t6d M-ortgagees: 70 ARTICLE X ------- - EMINENT DOMAIN,.,,.„ 70 10 1 .......... Condemnation of Master Association lu Condemnation of Lots _70 10-3 _ ._ ......... Condemnation of Condominium.-, _'70 104 ....... Notice to owners and Moltgagces 71 ARTICLE M RIGHTS OF MORTGAGEES._,. .. ..... _� 71 71 11-1 General Pimtections—__.— 111 ....... ... .... ... Additional Rights..__ ....... 71 ARTICLE M ENFORCEMENT AND DISPUTE RESOLUTION....... ............ . ..... ....... 73 12-1 Enforcement of Rest dctions"',", 122 Delinquent Assessments ...... �� 73 12.3 "ri�cmcnj of Bonded Obligations .. . .... _. __" 75 12.4 Disputesvith Declarant Parties..-,..,,-.,, ........ ...... =80 ..... .. 80 3607-290771CCRS% 538351,12 Itlam TABLE OF CONTENTS (continued) Page ARTICLE XHI DURATION AND AMENDMENT ............. . ............................................. 85 13.1 Duration ........ ........ 13.2 Termination and Amendmea— __. ARTICLE XIV GENERAL PROVISIONS ...................................... . ......... ........................ 87 14.1 Mergers or Consolidations . ........... ....... .... 87 14-2 No Public Right or Dedication,........— ......... . 97 143 Notices .. ....... ... ........ .......... ....... 87 14A , Constructive Notice and Acceptance_..............:.......:...:_.....,..._.... 88 ARTICLE XV DECLARANT'S RIGHTS AND RESERVATIONS............„............._...88 15.1 Construction Rights_......._.._.......:,.:...:........1_....11..-_'1_ '.1 15-2 Sales and M[aiketing Rights ......— � ... . ............... ....._.......88 15.3 Creating Additional Easements....... ...... _88 15A Architectural Rights-.... ..... .. 88 15.5 Use Rostflotion Exemption-, ......... .............. ......... 89 15.6 Assignment of Rights ...... -------- ____—.89 15-7 Amendment.....- . ......... .... .......... .. . ....... .. .... .. ..... .. . .. .......... .. 89 151 Power of Attorney ........... ...... . 89 15.0 Use ....... 89 1510 PatticipationinMaster Association ...........,..,.,....,, 15-11 Declatant Approval of'Actions ... ........ 90 15.12 Marketing --- — ---- _90 ARTICLE XVI ANNEXATION OF ADDITIONAL PROPERTY 90 161 Additions By Declatant- .......... 16.2 163 Rights and Obligations -Added Territory..............91 16A Notice of Addition.........._, ------- ...... 16.5 Notice of*Addition Content.... ... .... ....... ...... ....... 91 16.6 Do -Annexation and Amendment.......... .......92 SUBORDINATION EXHIBIT A - LEGAL DESCRIPTION OF ANNExABLE TERRITORY EXHIBIT B - ARTICLES OF INCORPORATION OF THE MASTER ASSOCIATION EXHIBIT C - BYLAWS OF THE MASTER ASSOCIATION EXHIBIT D - DESCRIPTION OF MASTER MAINTENANCE AREA IN PHASE I EXHIBIT E -ENTRY USE AGREEMENT -iv 3601-M?2%CCPM 538351,12 V10106 MASTER DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS I]KO ANDALUSIA AT CORAL MOUNTAIN Ihis MASTER DECLARATION is made by T..D. DESERT DEVELOPMENT LIMITED PARTNERSHIP, a Delaware limited partnership_ The capitalized terms used in the Preamble are defined in Article I. PREAMBLE: A. Declarant is the owner of real property ('Phase J'I located in the City of La Quinta, Riverside County, California, described as follows: Lots I through 22, Lots 25 through 51, Lots B through J, and Lots L, M, N and O of 'Tract No. 31681-1, as shown on a Subdivision Map, Filed in Boot 373 of Maps, Pages 7 to 13, inclusive, in the Office of the Riverside County Recorder. B. All of the Properties will be developed with certain common objectives, and Owners of Lots of Condominiums within the Properties will have certain common interests. the ,Properties, will beAeveloped with objectives designed to preserve the value of and to benefit all the property within the Ptopetties; This common development scheme imposes reciprocal burdens and benefits on all of the'Propetties;.such that each portion and the entirety of the Properties are both burdened by:the provisions of this Master Declaration for the benefit of each Whet portion of the Properties, and benefited by the burdens imposed on each otherportion of the Properties. C. Declarant has deemed it desirable to create a "master planted community" (as defined in Section 2792.32 of Title 10 of'the California Code of Regulations) which is also a common interest development pursuant to;the Davis -Stirling Common Interest Development Act, including a eorpotation under.the IYonprofE Mutual Benefit Corporation Law of the State of California (the "At�erAsso Woa') to which shall be delegated and assigned the powers and fiwctions of (I)-owtiulg, maintaining earl administering the Master Association Property for the, disc of its mMembeis`and suthoiizcd guests, (2) administering and enforcing the Governing Docuents, and (3) collectirtgand disbursing:the assessments and charges hereinafter created. D. Declarant declares that all of the Properties shall be held, sold, conveyed, encumbered,. hypodit4ed, lead; used, occupied and improved subject to the easements, restrictions,.covenan% conditions and equitable; servitudes contained in this Master Declaration, all of'which`arc for thg pwpose;of' preserving and protecting the value, attractiveness and desirability of'the; Properties, in futtheranee of`a general plan for the protection, maintenance, subdivision, improvement, sale and lease of the Properties, or any portion thereot The covenants, conditions, restrictions, reservations, easements, equitable servitudes, liens and 3W1T9o7XCCRS153e351 12 1110106 charges .set forth herein shall'tun.with.the Properties; shall be'binding upon,rill persons having any right, title or interest in the;Properties; or'any part thereof, their heirs, successive owners and assigns; shall inure to the,bencfd of suety: portion ofthe Properties'and any interesi tlterein;:shall inure to the benefit of and be binding upon Declarant and its successors4n-interest and each Owner and his .or her respective successots-in-interest; and may be enforced by -Declarant, any Owner orthe Master Association,. ARTICLE I DEFINITIONS AND INTERPRETATION 1.1 DEFINITIONS. Unless otherwise expressly provided, the following words and Phrases when used in this Master Declaration have the following meanings. LLI Andalusia' nystarn of private strects and sidei vehicular and pedesdian access to constitute Master Association Proper one or afore conveyances, to •tile Ma Association Property in this Master i Andalusia Entry Facilities 1I:2 Annexable Ter'titory_. Arma able Territory means the real property described"iir Exhibit A whieh,may, be made subject.to thls:Master Declaration pursuant to Article XVI, Any references is this Master, Declaustioa.to,Annexable Territory ate references to the t ;Anaexabte Tan itoryas a whole and to portions thereof Owners and>ti The 'Annual Sectioj ` 6G a'"Cost Center 1.1.4 Articles.. Articles means the Articles of Incorporation of the Master Association currently in effect. A copy of the Articles is attached as Erhtblt B. 1.15 Assessment. Assessment means any Anneal Assessment, Capital hnprovement Assessment, Reconstruction Assessment and Special Assessment. 1.1.6 Master. ,Association Maintenance Phuds. Master Association Maintenance Funds .means the. aecounts created for Master Association receipts and disbursements pursuant to Article`VII., 1.1.7 Board or Board of Directors: Board or Board of Directors means the Master Association's Board of -Directors. 1.1.8 Budget. Budget means a written, itemized estimate of the Master Association's income and Common Expenses prepared pursuant to the Bylaws. '2' 3601d90721CCRS153935112 1/10M 1.1.9 Bylaws. Bylaws means the' Bylaws of the Master Association as currently in effect 'A copy of the Bylaws as submitted to the DRE is attached as Exhibit C. 1_1,10 Capital Improvement Assessment_ Capital Improvement Assessment means a charge against the Owners and their Lots of Condominiums representing their share of the Master Association's costfot installing or constructing capital Improvements. on the Master Property' Capital Improvements Assessmens shall be levied in the same proportion as Amstar Assessments, However,, Capital .imp rovementAssessments for a particular Cost Center shall be levied lathe same proportion as;Annual Assessments only against Owners responsible for such Cost Center. Capital Improvement Assessments are special assessments as described in Califomia Civil Code Section 1366. i.l.l l City. City means the City of Ca Quints. in the County of Riverside, State of California, and its various departments, divisions, employees and representatives. 1-1-12 Recorded conveying Close of Escrow. Close of Escrow means the date on which a deed is a Lot or Condominium pursuant to a transaction requiting the issuance of a Final Subdivision Public Report by the DRE. 1.1.13 Club Entry Andalusia Entry Facilities in the'Prop entry structure on the eastside of Mad portions of private sheets Andalusia, ' 1 two entry structures to the furthest poh approximate location of the Club Enttl Club `Entry Facilities,are subject to a 11 �tuo'cmry racurtres means the portion of the W. Annexabie Tetrimly consisting of the main the entry structuna on Almonte, and all or the r111101 a and Cammna that extend from these the Andalusia Country Club parking lot The to depicted in the Entry Use Agreement Tliy e Agmemart and shall not constitute Master t fee'shilple title, in one or more conveyances, Master Association Property in a Notice of "ties dIWI be shared by the owner of the Golf vided'imtho Entry Use Agreement- 1.1.14 Common Area, Common Area means those certain volumes of airspace: described in a Condomin um Plan, which shall be owned by Owners in a Phase of a Condominium Project-'as-tenants-mcommon. Any references in this Master Declaration to Common Areaare references to the Common Area as a whole and to portions thereof: 1.1 15 Common Expenses., Common Expenses means those',expenses for vMQ!1 the Master Association is tesponsible under this Master Declaration (excepting expenses budgeted to the Cost Center) Common Expenses include the actual and estimated costs of and reserves for maintaining, managing and operating the Master Pro rt .. incurred for. maintenance im 13a Y (including amounts' ineluding:: posed :on the Master Association by "this Masts Declaration); (a) Master Association Property and Improvements thereon, including landscaped -add irrigated areas portions of the Master Wall, slopes, walls, fences MafacAssociation Property, landscepmg, gardening anii,other services benefiting the, tti' tratfstreet 3- 36071MrZ Cgs153rJ51 12 I/10M6 (b) Ihe'Master kitintenance Areas, including the cost of gardening and irrigation water and maintenance of. iandacaping, and'.thesepair and replacement of portions of the Master Wall that are,designated Master Maintenance Areas; (c) the cost of all utilities and mechanical and electrical equipment serving the Master Property, utilities which serve individual Lots but which are subject to a common meter, trash collection andremoval (as applicable); (d) the costs and fees attributable to managing and administering the Master Association, compensating the Manager, accountants, attorneys and employees, all insurance coveting the Properties and the Directors, officers and agents of the Master Association, and bonding the members ofthe Board; (a) Unpaid Special Assessments, Reconstruction Assessments and Capital Improvement Assessments; (1) Iaxes paid by the Master Association; (g) Amounts paid by the Master Association for discharge of any lien or encumbrance levied against the Ptopettiea, (h) Payment of the Racquet Club and Fitness Center Membership Fee, described in Section 3.20 of this Declaration; and (C) All other expenses incurred by the Master Association for the Properties, for the common benefit of the owners. nfuium Condominium means an estate in real property as Section 1351(f), A Condominium consists of an undivided fee Commoa.AtCB in -a PhaseAcieethe[ with a•senarate'nwne Aln -4 in that 301-29oMCM 538351 12 1/101" 1.1.18 Condominium Project. Condominium Project means a "condominium project" as defined in Section 1351(f) of the California Civil Code, or any similar California statute hereafter enacted, and additional real property designated in a Notice of Addition for such Condominium Project. I.1 19 Cost Center. Cost Center means:a group of Lots or Condominiums, the Owners of which are either (a) responsible for maintaining, repairing or replacing specified. Improvements on portions of`the Master Property; or (b) entitled to receive specified services, Provided by the Master Association. Additional Cost,Centets rosy be identified by Declarant in ra any Supplemental Master Declaration when Declant in its sole discretion, determines that a group of Lots or Condominiums benefits more from the Improvements or services than the Properties as a whole.., The Board may also designate other Cost Centers under circumstances authorized in this Master Declaration 1 1.20 County. County means Riverside County, California, and its various departments, divisions, employees and representatives. 1.1.21 Declarant Declarant means I D. DESERI DEVELOPMENT LIMIIED PARTNERSHIP, a Delaware limited pattnetship, its successors and any Person to which it shall ha.. Signed any of its rights by an express written assignment As used in this Section, "successor" means a Person who acquires Declarant or substantially all of Declatant's assets by sale, merger; reverse merger, consolidation, sale of stock or assets, operation of law or otherwise. Declatnt shall determine in its sole discretion the time, place and manner in which it discharges its obligations and exercises the rights reserved to it under this Master Declaration. Doclarant is a "buildet" as described in California Civil Code Section 1375_ 1-1 22 Design Guidelines. Design Guidelines mean the rules or guidelines setting forth procedures and standards for submission of plans for Design Review Committee approval. I.1..23 Design Review Committee or. Committee, Design Review, Committee or Committee means the Design Review Committee created in accordance with Article V. 1.,124 DRE. DRE means the California Department of Real Estate and any department or agency of the California state government which succeeds to the DRE's functions. 1.1.25 Entry Use Agreement. Entry Use Agreement means the Entry Facilities Use and Maintenance Agreement, as amended or restated, entered into between Declarant and Master Association fot the purpose of granting certain rights; and imposing certain obligations with respect to the sharing of,the;use, ,maintenance and ertpegses of the Club Entry Facilities. The Entry Use Agreement shallbe Recorded over.fbe�Club Entry Facilities and portions oUthe Golf Course Property pfiorto the first Close of Escrow in Phase 1, in substantially the same form as the copy of the Entry Use Agreement which is attached hereto as Exhibit E. 1.1.26 FHA. FHA means the Federal Housing Administration of the United States Department of Housing and Urban Development and its auccessors. -5- 3601-290721CCRR539351 12 MGM 1.1.27 Family. Family means natural individuals, related or not, who live as a single household in a Residence. 1.128 Fannie Mae. Fannie Mae means the Federal National Mortgage Master Association, a government -sponsored private 00111018tion established pursuant to Title VIII of the Housing and Urban Development Act of 1968 and its successors.. 1.1.29 Fiscal Year. Fiscal Year means the fiscal accounting and reporting period of the Master Association. LL30 Freddie Mae. Freddie Mac means the Federal Home Loan Mortgage Corporation created by Title 11 of the Emergency Home Finance Act of 1970 and its successors. 1.131 Ginnie Mae. Ginnie Mae means the Government National Mortgage Master Association administered by the United States Department of Housing and Urban Development and its successors. 1.1.32 Golf Course Property. GolfCourse Property shall mean the real Property adjacent to the Properties which is operated as a golf course and related facilities. 1.1:.33 Governing Documents.. Governing Documents means this Master Declaration, the Articles, Bylaws, Design Guidelines, Rules and Regulations, Supplemental ( Master Declarations and Notices of Addition.. 1134 limIrOVem=U Improvement means lany structure and any appurtenance, thereto the Design Review Committee may identify additional items that are Improvements. 1-1.35 Include, Including. Whether, capitalized or not, include and including means "includes without limitation" and "including without limitation," respectively.. 1.1.36 "Lot. Iat means any residential Lot or residential' parcel of land shown on any Recorded subdivision reap or Recorded parcel, map of the Properties, and excludes Master Association Property or Project Association ptopeity. Lot also means a Condominium as defined in this Master Declaration and m Califotnia Civil Code Sections 793 and 1351(f) if' the Condominium is a volume of real property not entirely within a building (a "site condominium').. 1.1.37 Maintain ,:Mainterrance. Whether capitalized or not, maintain end maintenance ly; meaty "rrtahOWO, repair and replace" i nd "mauuonance, repair and replacement," respectively, provided howevot, that maintain or maintenance shall not include repair and ►eplace(mem) where the enntaxt^or epeelfic;language of this Master Declaration provides another meaning.. 1.1.38 Maintenance Guidelines_ Maintenance Guidelines means any current written guidey�. nufrig forth procedures and standards for the maintenance and Master Property, pt p jeer Association Pr opeea6on of may be 'provided ol�n', Lots or condominiums, Maintenance Guidelines by Declarant, by the Master Associatiol% or by any governmental agency. -6' 3607.29072%CCRa153r351.12 I/I0106 Mainterumoc Guidelines include any maintenance manual 'initially prepared at Declarant's direction ,and containing recommended'ftoquency of inspections and maintenance activities for components of the Master Property ot, the Project Association Property, or pertaining to a Residence,•Lot,ot Condominium, 1.139 Manager. Manager means the Person retained by the Master Association to perform management functions of the Master Association as limited by the Governing Documents and the terms of the agreement between Master Association and the Person Association Master Association:means Andalusia at Corral a California nonprofit colporation -(formed ptnsuailt to the left Corporation Law or successor statutes); and its suceesscrs- mien is an' "Association" as defined in Section b5f(ayof the 1.1.41. Master Association Property. Master Association'Properfy means real or personal property owned in fee by`the Master Association and therefore made subject to the restrict ons'oa Master Association Property, established in this Master DMiaration.Any references'in this Master Declaration to Master Association Property are' references: to Mastcr,� Association Property as,a whole and to portions thereof ,'Ihe Master Association Properly is "common ales" -as defiled in Section 1351(b) of the California Civil Code. Additional Master Association Property, may be annexed to the Properties pursuant to Article XVL The Master Association and the owners shall have interim. access easements. over the Andalusia F„nv _....-- until fee mple tide or an easement wy " '— nuc Q) ana,rArs.1, L" A% N and O.(landscaped.open soace) of 'I7act,Plo 31681=iVare: designated:MaOber Association Property in Phase 1: 1AA2 Master Declaration. Master Declaration means this instrument as currently in effect. 1.1.43 Master Maintenance Area. Master Maintenance Area means those Improvements in residential Lots or Other real property which are not owned in fee by the Master Association but which are designated for maintenance by the Master Association, (a) Generally- the Master Maintenance Areas in a Phase may include one or more of the following: G) the structural irrtegtitq, cap and exterior surface„(facing , away from the residential Lot or Project Association Property); of those portions of the Master Walls that arc constructed on the residential'I ots or Project Association Property pe ty in the Phase; (n) Landscaping, consisting of soRscape and', irrigation equipment between the Curb and the courtyard wall located on the front yards' of residential Lots; &A 3607-MU CraS1 S38351 12 1/10106 (iii) Ihe'median in Madison Street,. (iv) The pedestrian and vehicle tunnel which travels under Madison Street;_ (v), the parkway landscaping'(between the back of the curb and the Master Wall)'onMadison Street; (A) Iire trail on 58" Strew; and . (vii) The portions of the trail which traverses the perimeter of the Properties that are located on Lots or Project Association Property. ter Maintenance Areas in Phase 1 incl ude sde portions of the Master Areas Wall lin ocated n Lots ase 1The Master PhaseeI and the landscaping, consisting of softscape and irrigation equipment between the curb and the courtyard wall located on the front yards of residential Lots, both as depicted on Exhibit D. (c) Master Maintenance Areas in Future Phases. Master Maintenance Areas ineach future Phase shall include the items listed iwsubpamgraph (a) above . as applicable to the Lots or Project AssociationPropetty in such Phase. Declatant"pay,de'smu'ate additional Master Maintenance, Areas in a Notice of;Addition or. Supplemental Master. Declaration. I.144 Master Property. Master, Property means the Master AssociationProperty and Master Maintenance Areas. Any references to the Master Property are references to the Master Property as a whole and to portions thereof. 1.1.45 „Master, Wail. Master Wall means any somtd wall,.retaining wall,;or fence in the Properties (a) that is eons'on a tract baundaty; or (b) that separates a Lot from `Master Association piopetty, Ptojeet,Assoctclton°Property, of public, property; or (c) that is constructed entirely within Master As§io14tion Property, ' (d)' tli' is designated as a Master Wall by Declatant in this Master Doclatatiwy of in a Notioe'of Addition or Supplemental Master Declaration, Patty Walls ate not Master Walls. the Master Walls in Phase I are depicted on Exhibit D. 1.1.46 Membershlp. Membership ,means Association. the voting and other rights, privileges, and duties established in the Governing Documents for members of the Master L I A7 Model Lot. Model Lot means a Lot that may be use by Declarant as a sales model under a model leaseback agreement..; Model Lots in Phase 1 may include Lots 47 through 5l''of Iract No 31681-1_ L1.48 Model Lot Sale. Model Lot Sale means the initial sale of a Model Lot by Declarant to a buyer subject to a modelleaseback agreement with the buyer, under .which Declarant may use the Model Lot as a sales model during the marketing of the Properties_ -8- 3607,790Tt1CCR M 538351.! Y VJW6 rded a deed gage Of trust, by which4a LothCo dominium,tor other ortion of the Propertiesris hypothneccated to secure performance of an obligation.. 1..1.50 Mortgagee. Mortgagee means a Person to whom a Mortgage is made, or the assignee of the Mortgagee's rights under the Mortgage by a recorded instrument For purposes of this Master Declination, the term Mortgagee shall include a beneficiary under a deed of trust. 1.151 Mortgagor. Mortgagor means a person who has mortgaged his Property. For purposes of this Master Declaration, the term Mortgagor shall include a tfustor under a deed of trust 1.1-52 Notice and Hearing. Notice and Hearing means written notice and a hearing before the Board as provided in the Bylaws. 1.1.53 Notice of Addition_ Notice of Addition means an instrument Recorded Pursuant to Article XVI to annex additional real property to the Properties.. County. 1-1.54 Official Records. Official Records means the Official Records of the 1.1-55 Operating Fund. Operating Fund means that portion of the Common Expenses allocated for the daily operation of the Master Association 1.1-56 Owner. Owner means the Person of :Persons, including Declarant holdingfee.simple interest to a Lot or 'Condominium.. Each Owner has a Membership in the Master Association. The term Owner includes sellers under executory contracts, of sale but excludes Mortgagees: the term "Ownet" may 1x expanded in 'a Supplemmal Master Declaration to include other Persons e adjacent Lou.1.1.57 Party Wall. Party Wall means any wall or fence that separates . 1.1.58 Person. Person means a natural individual or any legal entity recognized under California law_. When the word "person" is not capitalized, the word refers only to natutal persons_ 1..1.59 Phase, phase means each of the following: ,(a) Phase 1, (b) all the teal Property covered by a Notice of Addition for which a'Final Subdivision Public Report has been issued by :the DRE, and (c)real property consisting solely of Mastet.Association property as described in a Noticeof Addition :Declarant may otherwise' define the term "Phase^ in a Notice ofAddi6on or Supplemental Master Declaration. 1.1.60 Phase L Phase 1 means all of the real property described in Paragraph A ofthe Preamble of this Master Declaration, IM 3607-29072VCCRS1538351. 12 1110N6 1.1 61 Project Association- Project Association shell mean any Calif nia nonprofit corporation of unincotpolated Master Association, .or its .successor in inteiest, otganized and established or authorized' pursuant toot in connection"witka Projoct Declaration, the membership of which is 'composed of Owners of Condominituns within- Condominium Projectorothei Residences=within other pottions ofthe Properties r.l_62" Project Association Property Project As Property means real or personal property designated by Declarant as Project Association'Property in,a Project;. Declaration, for tiro primary : benefit :of or maintenance on. behalf of'the-Ownets within a pattioubw Condominium f rgjeet or odw s ified ] pee portion of the Properties. 1.1.63 Project Declaration_ Project Declaration shall mean any declaration of covenants, conditions and restrictions, or similar document, which is designated as such and which affects solely a Condominium Project or other specified portion of the Properties. 1.1.65 Racquet ClubAnd Fitness Center:: Racquet Club and Fitness Center or "Racquet Gab" shall mean the Requet Club and Fitness Center which is currently owned and operated by Declarant as a part bf'AIMalriaia Country Club. 1,L66 agaReconstruction ,Assessment. Reconstruction Assessment means a AMP urst the Ow>bors "artt! their Lots or Condominiums representing their- share of the Mastat Association's cost to reconstruct airy imptavtmirants on the Master Property Such charge shall be levied amorrg all Owns aril tfieh igts-m: Condominiums in same; I Opottions as Annual Assessments:. Recomitimetion Assessments are "special,assessmc'oW as described in California Civil. Code Sgction 1366: 1.1.67 Record or Fide.. Record ou File means, with respect to any document, the entry of such document in Official Records. 1.1.6$! Reserve Faad_ Reserve Fund means that portion of the Common Expenses -allocated. (a) for the _fmttre 1.repair and, mplaoemem of. or additions to, structural elerrreats, mechanical' and other major components of Master Association -maintained improvements,,and tb9 amounts necessary°3t oover the deductibles under all insurance policies rirarntained by tire,Master Association 1.1.69 Residence.. Residence mesas the dwelling unit constructed on a Lot, excluding the garage area, and the residential element of each Condominium which is designed and intended for use and occupancy as a residence by a single Family_ 1.1.70 Residential Area:: Residential Area shall, mean properly which is so classified (ijalt of; the teal punnmat to:Section 2 2 hereof and Aevelopcd aeaignated for development as singlaFamily Lots or Condominiums, and Ci) all of the, real property in the l0 3603,230tMCM538331 12 (: mass i Annexable Territory which may hereafter be so classified pursuant the Section 2.2 and developed or designated for development as single -Family Lots or Condominiums 1.1 71 Right to Repair Law. Right to Repair Law means Division 2, Part 2, Iitle 7 (commencing with Section 895) of the California Civil Code. l .1.72 Rules and Regulations.. Rules and Regulations or "Rules" means the current rules and regulations for the Properties. 1 1.73 Special Assessment_ Special Assessment means' a charge against an Owner and his Lot, Condominium or against a particular Project Association, representing a reasonable fine.ot penalty, including reimbursement costs, .as, provided for in this Master Declaration. 1.1.7.4 Supplemental Master Declaration 'Supplemental Master Declaration means an instrument Recorded' by Declarant against all or a portion of the P operties in order to supplement' modify, or clarify conditions,' covenants, restrictions of easements established under; this Master Declaration. A Supplemental Master Declaration may affect one or more Lots;, Condominiums, Project Association Property or Master Property. Declarant may Record a Supplemental Master Declaration so long as Declarant owns all of the,real.pmperty:w be encumbered by the SupplemMW'Master Declaration. A Supplemental Master Declaration May modify this'Master Declaradon`as it applies, to the property encumbered by the Supplemental M"Declaration , 1-1.75: 1.1.76 Teleeoifimunfications SetvIces. the reception; distribution or trensrttisslon of video, and services, and any other similar services now existing.or Dcehuant.may expand this definition in anySupplemental Ielecommunications Facilities means rs, conduits, ducts,; vaults, connecting the; devices now exisfiog',ot that may in 1.1.77 Unit. Unit means a separate interest in space, in accordance with Section 1351(f) of'ihe California Civil Code. Each Unit shall be a separate freehold estate, as separately shown, numbered and designated in a Condominium Plan. A Project Declaration may further define a Unit. 1..1.78 VA. VA means the Department of Veterans Affairs of the United States of America and any department or agency of the United States government which succeeds to the VA's function of issuing guarantees of notes secured by Mortgages on residential real estate L2 INTERPRETATION. 1.21 General Rules. This Master Declaration shall be liberally construed to effectuate its purpose of cleating a uniform plan for subdividingi maintaining, improving and 11- 3601-2907zccass3e351is 1110106 selling the Properties. As used in this Master 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: I Z2 Articles, Sections and Exhibits:. insetted for convenience only and may not be considered in or construction. Unless otherwise indicated, any references sections or exhibits ato Articles, Sections and Exhibits of D. and Ere ,attached to this Master Declaration are jneotpolst4 reference: The locations and dimensions of any Imptoxeme h the Article and ensto and to, any; Notrce of Addition :are apprtsximate only: and dimension of anysuch Impnvements shall control. on 1.2.3 Priorities and Inconsistencies Declatant intends that the Properties be developed for ainglo-Eamily residential uses consistent with this Master Declaration. In addition, Declarant,at its option, may designate areas fat maintenance, recreational, institutional Of other purposes, As each Condominium Project or other portion of the Properties is developed, Declarant.ma with y, respect'tho—, Record one (1) or more Supplemental Master Declarations Which incorporate ,this Masten Decimation therein by reference, which shall designate the use classifications,within the areas of ect6d'and which may supplement this Master Declaration with such additional covenanfs, .conditions,: resttictions and land uses as Declarant may deem appropriate for the real property' being annexed thereby (defined in Section 163 as Added Terrltery'). The provisions of Amyx Supplemental Master Declaration or Project Declaration may } impose such additional or more restrictive conditions, covenants, restrictions, land uses and limitations as Declarant may depttadvisable, taking into account the particular requirements of each Phase end, any such conditions shall not be deemed to constitute a conflict with the provisions of this Master' Dtxrlatatiom to the etatcmt they can icasonably be interpreted to be consistent If there is any conflict between SAY Supplemental Master Declaration sad the Master Declaration, the provisions of the Supplemental Me teJ Declaration shall controh0fi respect to the Added TatitotY' described in such Supplemental Master Declaration, although such docutn"Ie sho be corrsgaed tobe consistent with one another to the extent possible. If there is any conflict between, any Project Declaration and the provisions of the Master Declaration or Spplioable: birpplementalMaster Declaration, the . Master Declaration and applicable PPl 6nta1-lNaster:declaration shall'control, although such documents shall be construed to be consistent with one another twthe extent possible_= A .Projectbeelatation may, but need not, provide for the establishment of a Project Association;. to be comprised of Owners of Residences in the teal property subject to d .i'roject<Deeiaration.,'if there: are conflicts or inconsistencies' l etweenstliis Master,,Declaration, and the; Artich* Bylaws or Rules and Regulations, that the IM 12.4 Severability_ The provisions of this Master Declaration are independentaud'sevetable: A deter iination of invalidity, partial invalidity or unenforceability of any one.(lj ptovislCm of'" Master Declaration by a court of competent jurisdiction does not 4Hor4 the validity of enforceability of any other provisions of this Master Declaration. -12- 3607-29072rccnsrs38351 12 MOM 1.2 5 Statutory References. All references made in this Master Declaration to statutes are to those statutes as currently in effect or to subsequently enacted replacement statutes ARTICLE It MAINTENANCE COVENANTS AND USE RESTRICTIONS The Properties shall be held, used and enjoyed subject to the following restrictions and subject to the exemptions of Declarant set forth in the Governing Documents. 2.1 REPAIR AND MAINTENANCE. 2.L1= Maintenance Standards: Ihe everything it is obligated to maintain in a clean,,sanitaq consistent with the level of: maintenance reflected in the in, with anyMa4itenance Guidelines. Unless specifically,proi the Boir"Isball determine. in its sole discretion, the level Board, after'consu Owner or Project ,_. correct such eon& H 2.12 to to, any Owner or ity of'such Owne By Lot Owners. liable Master Association shall maintain and attractive condition reasonably 9t current Budget, and in conformity ded in any Maintenance Guidelines, nd.'frequencyOf maintenance of' the ail maintain everything the Owner is edition and in conformity with any ect Association shall, permit any= Project Association to maintain, to, shatl'pay: (b) t:"arr►*wdAreas Ihe:poition of each,Lot'located in front of', rho Residence;on tha Lot which is enclosed wWtm a I.cour1ywd wall, is rcfetted to herein as the. "Courtyard Area"' Each Owner sEisll be responsible flu maintaining all nm vemetda in the -13- 3607-290721CCRS1539351 12 1/10" Courtyard Area including the courtyard wall. The landscaping, consisting of softscape and irrigation cqulPnMt between the. curb, and the CQUVIYald'Wiff Shall be the responsibility of the Water Association as a Mate! . 'Ma. IMMOccArea, Ifat dispute arises between an owner and the Master Association regarding should be maintained by the Mastet Association or the .owW,:the" Board of Directors, of the master Association shall determine who will be responsible and the Board's determination shall be final: and in the rem- of the'Resideneg be referred to herein asthe '4ke 811 Improvements in the Rem recreational and garden areas. irrigationsystem thereon, and Declaration and approved by du of the Lots located on the side Dunded by a fence or wall shall .Used LTU IN, Mainenance xes aibrliL All of the Rem Yard Arm including dle'fenrVencloslng:iha Rem Yard Arei.andthe ;drainage system established by, Declatant as part, of the grad4- W tW* construction of the Rea Yard'' Area, shall be repaired,replaced and maintained continuously U!4kneat and orderly .condition bythe Owner ef the Rear Yard Area. '::Each Owners maintenance obligations shall include performing all necessary landscaping and gardening to Properly maintain and Periodically replace trees, plants, Class and other vegetation located in the Rear Yard Area. LMOPMMIMA& T11c Rest Yard Area on each Lot shall mage, destroy or interfere in any way with use and quiet '061fCO1146 Property. If an Owner receives Design kiwi huNlioll aPing adjacent to the structural walls on the other applicable requirements of the City. rucumu WMIS or. or repair of my meet the set back requirements and any (d) POny Wafts. TO the extent not inconsistent with the provisions of this section, the general rules of law regarding Party Walls and liability for property damage due to negligence or willffil acts or omissions shall apply. O Shaun' &—d—HOW AdJAWASIMM, The cost of masonable.mpair and maintenance of a'N�y . , —A the Waila1u�Y"by the Owners of Howw-- er. ", each for e abated side of any Party Wall fRCillg his Lot., 'Lots connected OY Such PEV, WalVT; repainting the -14- 3607-29orAOCKM 539351.12 1/1606 (ii) Destruction by Fire of O t Cauglrv_ Unless covered by a blanlret insurance policy maintained by theMasterAssociation under Section g.l, if a Party Wall is destroyed or damaged by fire or other casualty, any Owner whose Lot is affected thereby may restore it, and the Owner of the other Lot affected thereby shall contribute, equally to the cost of restoration thereof; without prejudice.. However, such an Owner may call for a larger contribution from the other under any rule of law regarding liability for negligent or willful acts or omissions. (ii) Weatherproofrne. Notwithstanding any other provision of this Atticle, an Owner who by his negligent or willful act causes a Patty Wall to be exposed to the elements, to deteriorate, or to require repair or replacement shall bear the whole cost of furnishing the necessary protection against such elements or the necessary repairs or replacement. (iv) Riehtto Contribution 'Runs With Land. ° the right of any Owner to contribution from any other Owner uncW:dg1s Article ;tsappurtenant to the land and passes to such Owner's successors in title. (e) Pafnting of Residence. the Master Association, acting through the Design Review Committee or the Board, may determine the frequency with which exteriors of Residencea'on Lots in the Properties should be painted. The Master Association shall send a notice to each Owner of a Lot stating that the Residence must be painted within a prescribed period of time. If the Owner does not elect to paint the Residence within that period of time, then the Owner" shall be deemed to have elected to have the Master Association paint the Residence. The Master Association may then paint the Residence and charge the cost of the Painting to the Owner of the Lot as a portion of the Owner's Common Assessments. (f) Other ResponsibAkies., the Lot for wood dostro in (i) Each Owner shall reguhuly inspect the Improvements on y g per, and if such pests ate.found, the Owner shall be responsible for the costs of eradication and frrtute,prevention.: Gi) Each Owner whose Lot utilizes a sewer system lateral is responsible for the maintenance and repair of the portion of the lateral lying in the boundaries of the Lot enclosed a The Owner of any Lot }hat is partially or completely _ by portion of the Master Wall (whether constructed on the Lot or adjacent to the Lot) is responsible for maintaining only the surface of the Master Wall drat faces, the Owner's Residence, However,Owners shall not be responsible for maintenance of any glass of tubular:' steel portions of the Master Wall. ,% 2.13 By Condominium Owners;; 'Ihe maintenance responsibility for each Condominium Owner in a Condominium Project shall be set forth in an applicable Project Declaration or Supplemental Master Declaration -15- 3607-29072ccas538351 rz 1110106 2.1.4 BY Master Association.. (a) Comaietrcement :aj OWigallans. the Master Association's obUgatiodto maintain Hte Master Asec+ciatloh.Ptoperty in a Phase composed solely of Master, Association Propety shall cocnmenoe on conveyance of such Master Association Property to the Mastet'Assncistioti The Master Association's obligation -to maintain the hdastor Association Property in arty Phase commences on the date Annual Asaments cornarence on Lots and Condomgtiwns in the Phases The Master Association's obligation to maintain Master Maintenance Areas in a Phase commences when Annual Assessments commence on Lots and Condominiums in such Phase, unless the tams of the rsetvadon or grant of easement for such Master Maintenance Areas provides otherwise.. Until the Master Association is responsible for maintaining the Master Property, Declarant shall maintain the Master Property. (b) Maintenance Items. the Master Association shall: (i) repair and pay for all'centrally-metered. utilities and rrrechanieal and electrical equipment serving the Master Property; pay ail charges for utilities which serve individual Lots but which aresubject to a common metet; and (iii) maintain all Mastet'Ptoparty, including the landscaping, and ittigation'equipment between the curb and the courtyatd wall located on the front of residential Lots. The Master Association ;shall have :no responsibility to provide the services ratetred to. in 9tia petagraph,with response to'(1) alrYInpl,o'verrrent which is the maintenance nosporrstTtildy of anY Owner pursuant to Se6dims12 1,2 and IF above, (H) any Improvement (mcluding'tvi6rout:wtation patkont areas, median strips and sidewalks) which is accepted for tgainienartce. by an state,, local or municipal governmental agency or entity, or (iii) any Irryuovtxrtcut which 'lathe maintenance responsibility of any Project Association- * _ Master Waif The Master Association is responsible for F81111vosod' (a) all glass ot: tubular steel portions of'the Mastu .Wall, (b) its,cap and skucktral (cj thl .4t.may he replathroughthnr .1. (d) Replacement oJ' LandreWng. If the Master Association removes or damages any landscaping Improvements on an Owner's Lot or on Project AssocAssociation Property while maintaining the Master Wall, the Master Association is not iation for replacing the landscaping Improvements: Association Prograss(°) Maintenance of �daster Amodatim �, All Master lxrtY , trees, slopes, lu vato skeet modians and oinamcatal pegotation shall be properly hrigated, fertilized, trimmed, mowed„and:in all rests cered,for In,a mamterso'as -16- 36ar-M?21C=53S351.12 MOM to provide a well maintained appearance at all times. Landscaping shall be kept five -.and clear of all weeds, debris and rubbish, and trees and shrubbery shall be trimmed t to block the. view of traffic, The Master Association shall at all times maintain in good so as not to bloloc_ k appearance all buildings or elements thereof in'the. Master Association Property, (0 Addiddonal ltemL the Master Association shall also be responsible for maintaining'any lrtuprovernertts; s majority of the; voting powerof the Master- Association designates for maintenance by the'Mastet Association Such property shall ,be dcem«1 to be Master Property, and subject to the provision>of the Governing, Documents applicable to the Master Property. shall .be paid'for as Co 9) C*orge to Owners. All costa of maintenance for the properties penses. out of the Master Association Mainenance Funds as provided iathis, Master Declaration. No Owner or Project Association'shall interfere with the exercise by the Master Association of its rights hereunder, or its OAS emeIll maintetiance'6ir the Master Association Propertynr Master Maintermoe Area (h) Cast Centers. The Master Association shall provide maintenance, ctl an .and other services for a Cost Center. Such items shall be depicted in the Notice of Addition or Supplemental Master Declaration annexing such Phase to the coverage of this Master Dmia ation_ 2.1:5 Inspections, The Board shall periodically causes cotnpiiarrce inspection of the Properties to be conducted by the Design Review Committee to report any violations thereof the Board shall.also cause condition inspections ofthe:Master all Improvements thereon to be conducted in conformityProperty and with 'the applicable Maintenance j Guidelines, and in the absence of inspection frequency recommendations in any ;applicable Maitttenance•Guidelitres at least once every three (3) Yeats,. in conjuaction'with the inspection itetjtthod for the reserve study to,,be corrdacted Pursuant to Section 21d of the Bylaws, to (a) determine whether, the Master'Property is being maintained adequately accordance witlt,the standards ofttraintettance established in See on 2.14, (b) identify tha,condition,o f'the; Master Property and any improvements°thereon, including the existenoe.of any hazards.ot. defectsi. and. the need, for`performi68 additional maintenance, refurbishment, replacements or repair, sod (o) recommend p'rer+entive,actions which may be taken to, reduce potential maintenancecosts to be;. ,. incurred in the future_ the Board:shall, during its meetings, reguially d. 4Cmdile 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, lie -taken to assure proper inspections and maintenance of the Master Prnpacty. the Board shellkeo •record of such dotetminstioup;a s in the Board's:minuies. The Board shall keep Declarant fully informed of.the Board's activities under this Secnon ZL5.: The Board shall l with'seasonable cost �P oY, consistent management; such experts; conttactots and consultants as ate necessary to pa&IIII11106sPections and make.the rep Its requited by:this Section 2-1.6 Reporting,,:Requirements. The Masts Association. shall prepare a report of the 'results of the inspection milt ired'by this _Section_ The report shall be furnished to Oamcrs and Declarant within the time sU'fdr famishing the Budget to rho (?p "* the report mast incluOWirtl least the following: -17- 3607-299rl1C=538351,12 Urab6 (a) a description of the, condition of the Master property, including a list of items inspected, and the status of maintenance, repair and need for replacement of all such items; (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; (d) a summary of all reports of inspections performed by any expert or consultant employed by the Master Association to perform inspections; (e) a report of the status of compliance with, the maintenance, replacement and repair needs' identifiedinthe inspection report for preceding years; and (i) such other matters as the Board considers appropriate. .!` %.,c Fuu`4 wrrene9Crsl10n,. Association & Pa and fifr:whaxever portion of' the,Master Pro is iospecoad, within thirty (3o)�days after the cony3letion,of such irrsfrocUott:'sad.(b) the most recent condition utspection iepott far an prepared y portion of the'. � tvlaster Association 1"19pettY. no later titan the date dud Is ten (lo) days after the Master Association receives DeclatattPs written request: 2.2 LAND CLASSIFICATIONS. the Properties, including each portion of the De Added Ierritory described in a Supplemental Master' claration, shall be designated according to one or mole of the following land classifications: No. 31681-1. 2.2.1 Residential Area. Lots I through 22, and 25 through 51, of Iract 2.2.2 Master Aasoclation Property: Lots,B�thmughJ, and LotsL, M, N and O ofltact No, 31681-I. r As- 3607-MMOCRM539351 12 1110/06 1 213 Master Maintenance Areas. the Master Wall located on the. Lots in Phase 1 and the landscaping, consisting of'softscape and irrigation equipment between the curb and the courtyard wall located on the front yards of residential . Lots, both as depicted on Exk" D. 2.3 SINGLE FAMILY RESIDENCE. The Residence shall be used as a dwelling for a single Family and for no other purpose.. 2A FURTHER SUBDIVISION. Except as otherwise provided in this Master Declaration, no owner may physically or legally subdivide a Lot or Condominium in any manner. including;dividing the Lot or Condominium into time-share estates or time-share uses.. Nothing herein shall'prohibit an Owner fiom holding two or more Lots as a single parcel for uses consistent: with this Declaration, provided that the Owner shall still be responsible for paying Assessments on each Lot MIhIn+um 30 c4"6 per t.a u,�U 2..5 RESALE AND RENTAL. Nothing in this Master Decimation shall�be deemed to prevent (subject to any `Owner occupancy or anti -speculation requirements that may be, sepatately agreed to between an Owner. and Declarant) (a) an Owner fiom selling the Lot or Condominium or (b):, an Owner from entering a wtitten lease or rental agreement for occupancy of the Residence. and the Lot or Condominium by a single Family, provided that the lease or rental agreement is made expressly subject to this Master Declaration. Owners may also rent Lots or Condominiums to Declarant for use as sales offices, model homes and parking areas.. All lessees, tenants, and their Families, agents and invitees are bound by the Governing Documents when present in the Properties,, and any violation of the Governing Documents constitutes a default under the lease or rentaLagreement. Doclarant may not lease any portion of the Master Property to the'Ownets.to'the Master Association or to any Project Association 2.6 BUSINESS AND COMMERCIAL, ACTIVITIES.. 2.6:1, Generally. No :Owner or other occupant of the Properties may undcrta6 any activity"" on any Lot or Condominium or on any portion of the Master Association Property of Project Association Property for business or commercial purposes including manufacturing, meteanfile, storage, vending, auctions, transient occupancy (such as vacation rental, hotel, ortime-share), vehicle of equipment repair, or other non-residential purpose Such activities are prohibited whether they are engaged in full- or part-time, whether they are for - profit of non-profit and whether theyare licensed or unlicensed. following: 2.6.2 Exceptions.. This Section shall not be interpreted to prohibit any of the e hiring of employees or consttuction or repah services thathare consistent with the Governing Documents; de maintenance, XV; (b) Exercise by Declarant of any tights reserved to it under Article (c) The provision of in -home health care or assisted -living services to any resident of the Properties; -19- 360r-290 rAccits1 s3o3sr 12 MOM hluol Coj& 9101320 (d) the provision of>family home child care services as defined in Califomia Health and Safety Cock Seetlon '007.40, et seq. so long as such services comply with all applicable zoning requirements and state law. The cliertivic Of the family home child care provider may not use the Master AssociationPtopetb' of Project Association Property; comply with all of the following:The operation of small home -based service businesses that Permanent, full-time basis; (i) the operator of the business lives in the Residence on a (n) When conducted in the Properties, business activities take place solely inside the Residence; (iii) Visits by clientele or suppliers ate limited to regular business hours and clientele and supper park thoh vehielewonly in the driveway or garage of the Lot or Condominium; (iv) the activity complies with all laws, regulations and ordinances applicable to the pro patties, including zoning, health and licensing requirements; () The activity otherwise Declaration and is consistent withvthe residential character of the Prodies with the Master in the properties; (Vi) The operator of the business posts no signage anywhere (vii) Other than visits by clientele or suppliers, there is no Visible evidence in the Properties of the activity; (viii) The activity does not generate noise or odors that are apparent outside the Residence; and liability or (ix) The business does not increase the Master- Association's ty casualty insmance obligation or premium; or ( t3tha activities that have': been determined by governmental authorities to be consistent with the, sltrgic-family tesidentiei: uses is the Properties, including, for example, residential cat, &oiiides #W",a*e'q �igd`4FIaccordance with California Health and Safety Code Se tionA*.d. ' 2.7 N[J[3AlVCES:; Noxious or nffensiva;activIdes ate prohibited in the Properties and on any. public , sttoet abutting w visible &eat rho determine if any device, . odor or actin PropalUea .. The Boazd `is -entitled to', _. _ ity constidrtes a nuiaeroe ` ; lam. ..:. . 2.7.1 Nabsnce Devicea.. Nuisance devices may not be kept or operated in the Propadcs or on any public street abutting the Properties, of exposed to the view of other 20- 3W-29072cCass3135112 vroros Lots, Condominiums, Project Association Property or Master Property. Nuisance devices include the following: (a) All horns; whistles, bells or other sound devices (except security devices used exclusively to protect the security Of Residence or a vehicle and its contents) (b) Noisy of smoky vehicles, power equipment (excluding lawn mowers and other equipment used in connection with ordinary landscape maintenance), and Prohibited Vehicles (defined below); (c) Devices that create or emit loud noises or noxious odors; (d) Construction or demolition waste containers (except as permitted in writing by the Committee); (e) Devices that unreasonably interfere with television or radio reception to a Lot or Condominium; , (f) Plants or seeds infected with noxious insects or plant diseases; (Pa. The presence of any other thing in the Properties which may (i): increase the rate of insurarme in the propemea (ii) trsuh in cancellati obson of the insurance, (tii) ttuot or with the tights of other Owners or the Mast Association, (IV) violate any taw or provisions, of'this Hestia Declaratiowor the Rules and Regulations.' ' or, (v) •._ ,, nuisae of other threat to health or safety under applicable law of ord9nanoe cAnstitute a nc 2.7.2 Nuisance A.0yuks, Nuisance activities:m t riot be uadertaloerr in rite Properties.or on any public street abutting jhe Propetties, or exposed to die view of. other Lots; Condominiums, Project Association Propetty'or Master. Property without thb Bosid's prior written approval. Nuisance activities includ6 he following, (e) Hanging, drying or airing clothing; fabrics or unsightly articles in any place that is visible fiom other Lots, Condominiums,. Project Association Property or Masts Property or public streets; (b) the creation of unreasonable levels of noise from parties,` recorded music, radios, television or related devices, or live music performance; (c) Repair or maintenance of vehicles or mechanical equipment, except in a closed garage or rear yard,scrcened from view by other Lots, Condominiums, Project Association Property or Master Property; (d) ` Outdoor fires, ex'cei)fin=barbecue grills and fire pits designed and used in such a manner drat they do not create a fire ha22ttd; (e) ' Outdoor storage of bulk materials or waste materials except in temporary storage areas designated by the Committee. -21- 3607 2907WCRs1 s3r3rr 12 r/reg6 12 (f) Any activity which may (i) increase the rate of insurance in the Properties, (ii) result in cancellation of the insurance, (iii) obstruct or interfere with the rights of other Owners, (iv) violate any law or provisions of this Master Declaration or the Rules and Regulations, or (v) constitute a nuisance or other threat to health or safety under applicable law or ordinance.. 2.8 SIGNS_ Subject to Civil Code Sections 712,713 and 1353.6, no sign, advertising device or other display of any kind shall'.be displayed in the Properties of on any public street in or abutting the Properties except for the following signs: 2.8.1 entry monuments, community identification signs, and traffic or parking control signs maintained by the Muster Association of a Project Association; 212 for each Lot or Condominium, one (1) nameplate or address identification sign which complies with Design Review Committee rules; 2.8.3 for each Lot, one (1) sign advising of the existence of security services protecting a Lot which complies with Design Review Committee rules; 2.8.4 for each Lot or Condominium, one (1) sign ad it* si a Lot or Condominium for.sale or lease drat complies with the following requbemor (a) the sign is not larger than ell18) inches by thirty (30) inches in size; (b) the sign is the ground by a conventional, single vertical stake whic6'doas nM.exceed two : by three(3) inches in diameter (i.e_, posts, pillars, frames or similar srrarrgement, ited); (c) a top ofthe sign,is not more than three (3) feet inheighn above the ground level; <d)the sign is of a color and style and location authorized by the 2.8.5 $igns, regardless of size or configuration, used by Declarant, its successors and assigns, to advertise the Properties during construction and sales petiod or installed by Declarant to denote visitor parking on the Master Association property or the Project Association Property.. All signs or billboards shall conform to the requirements of all applicable governmental ordinances; and 2.8.6 other signs or displays authorized by the Design Review Committee, For Condomiaiuin' Pro}eeta all noticos;, hrduding sale or lease? advertisements shall be displayed in s dkectory'tnahltairted and opersW by the Project Association wbidt:she(( not require Design .Review Committee approval ,kf such; directory is initially installed ',by Declatarrt. -22- 3607-M71BO=53935r 12 1/10106 9 . g . ^ f Real Estate Sign Rule Although the Association strongly urges owners to refrain from using real estate signs, signs that are used shall conform to the following regulations. In accordance with Section 2.8.4 of the CC&Rs, an Owner may have one sign advertising the Lot for sale or lease that complies with the following restrictions. 1. The sign is placed on the Owner's Lot and not anywhere on Common Area. 2. The sign is placed at least 10' in back of the curb. 3. The sign may not be placed in lawn areas maintained by the HOA. 4. The sign is not larger than 18" x 30". 5. The permitted colors are brown and beige. 6. The sign is attached to the ground by a conventional, single or dual vertical stake which does not exceed 2" in diameter. 7. Posts, pillars, frames or similar arrangements are prohibited. 8. Attachments, riders or flyer boxes are not permitted anywhere on the stake or sign. 9. The bottom of the sign is not more than three feet in height above the ground. 10. The sign must be taken down within five days of an accepted offer. 11. One OPEN HOUSE sign may replace the FOR SALE sign on the Owner's Lot in accordance with the real estate sign rules, and may be used only while an agent or representative is physically present in the home. real estate sign rule-dennis.doc 2 9 PARKING AND VEHICULAR RESTRICTIONS. 2.9.1 Definitions- The following definitions shall 813131Y to parking and vehicular restrictions set forth in this Master Decimation: 292 Authorized Vehlele.,, An "Authorized Vehicle"is,am automobile; a 2,93� 41rahlbited vebfcirrs.� The f0flowing, vehicles are, "Prohibited large` commercial -type Vehiclese trucks, tank trucks . , dump truck% step vans; and: 'conCr*te' trucks)', (b), limousines or Vauto designed to accourroo"', am diall tln(10) or parts,:of iclesjd) ahcaaft, (6) a1Cracreational and ($)Any other vehicle noL classified as srlad a�:numnCe: by the Master Association;. , Vehicle. it an 'Authorized Vehicle aiW,a pt, 6-hi'llitad . Authorized . . . a,vollicle qualifies atboth l* S the.*ehickis presumed tobe atiollilifted Vahicic, -URIC" dw vehicle. is ox,pranly At i i M. writing by the Master Association The has thol, to ld6titlf -No - ' YaddW0QdvehlcleVasPrbhibjtedV4 lesinthe Rules atikollurtrr adaptthtsUSitt-Won to otbei types of Vehicles that We not tsted ibtlii. 29A Parking Restrictions. (a) PWh*W YehAW No Prohibited Vehicle may 46 parked, stored Or kOPt In the PMPades cicVt for bilof perioda.dunag loading,, -or emergency rVaks'l6r, unloaditig, a o" (ly hour 'period, unless dvti ot used by the Water Assnation or a Pinject atmi"idewilry"'" grrtsge86 1400 long as ripe 8411* is kept and the par pieseme ofiltv Prohibited Vehicle does not prevent all Whicilifiona.biling Paw .in *6 PrAgelot, driveway y Authorized .. at the same tittle. 2_03: Repair,, Qateanneb nad, Restoration_ Pelson, may repair, midtitain or "store vehicle -in No, 1110:P100ftkir noicss such work is coid46 any, ch"in � n torl"bi;tbagarage with the gatAge door closed M'WeYOF1,110 Person rimy carry on in any portion of the Pi4otles ad-* vehicle Marro maintenance of ftsto ration business 29-6 Enforcement The Board has the light and power to onibrce all parking and vehicle use regulations applicable to the Properties, including the removal of -23- 3607-no n=V%% 538351,12 1/10" violating vehicles from alleys, streets and other portions of the Properties in accordance with California Vehicle Code Section 22658.2 of other applicable laws.. the City may, but is not required to, enforce such restrictions, rules and regulations, in addition to applicable laws and ordinances. 2.9.7 Regulation and Restriction by Board- The Board has the power to: (a) establish additional rules and regulations conceming parking in the Master Association Property, including designating "parking," "guest parking," and "no parking" areas; (b) prohibit any vehicle repair, maintenance or restoration activity in the Properties if it determines in its sole discretion that such activity is a nuisance; and (c) promulgate rules and regulations concerning vehicles and parking in the Properties as it deems necessary and desirable. 2.9.8 Project` Associations: The Mastet Association may delegate the responsibility for enforcing' the teshiations'in this Section to any Project Association. If the Master Association notifies a Project Association that the Master Association has delegated Its responsibilities, the Project Association must enforce these restrictions as they apply^to property subject to the Project:Association's,jurisdiction. If a Project Association Nis to enforce these: restrictions, the Water Association, may revoke the delegation ot-impose;a Special. Assessment on the Project Association 2-10 ANIMAL REGULATIONS. customary household pets, may be kept in of or maintained for commercial ;pulposes, or in ` the Properties. Small household pets sirch, i. numbers so long as there is no external nvir controlling the animal either on shall be absolutely liable to earl guests for damages or injuries Owner, by members of the Owr Owner shall immediately remoN such Owner's animals onariv: na Up to two (2) domestic dogs, cats, birds or other h Residence; provided that they are not kept, bred uueasodable quantities. Pit bulls are prohibited in fish and caged birds may be kept in reasonable noe of their preseirce in the Properties. Animals is in the Properties must be kept in the Residence; ;r be kept under the control of a Person capable of aapptoptiaterestraint _ Furthermore, each Owner ling Owners, their families, tenants, residents and anhnals?bfoughb;or kept in the Properties by an by.the Owner's guests, tenants or invitees. Each it or clean other unsanitary conditions caused by 2.11 ANTENNA RESTRICTIONS. No Person may install on the exterior of any Residence, roofioPs, balcony failings or in a yard any antenna of ovarthe-ail receiving device except for an "Authorized Antenna." An Authorized Antenna is(a) an antenna• designed to; receive direct broadcast satellite service, including direct -to -home satellite service, that is one (i) meter or less in: diaineder, (b).an antenna designed to receive video programming, setvice ineludmg miihi-channel multipoint distribution service, instructional television fixed service, and !Deaf mulopoint distribution service, and is one (1) meta or less in diameter of diagonal measurement,: (o) an`antentia do!jnCd to receive television broadcast signals, or (d) an antenna used to receive and transmit fixed wireless signals. An Authorized Antenna may be mounted on a mast to teach the height needed to receive an acceptable quality signal, subject to local governmental agency permitting requirements for safety purposes. -24- 360729072C `RSJA835112 W10A16 2.111 Restrietioos on Installation_ The Committee may adopt reasonable restrictions on installation and use of an Authorized Antenna as part of its Design Guidelines in order to minimize visibility of the Authai?W Ant%'= firm other Lots or Condominiums. Such restrictions may designate one (1) or mota;prefeued installation locations. or require camouilaee such as paint (subject to tlw antenna-mamr or other Improvements. However, no unreasonably delay or prevent the inswIlatic unreasonably increase the cost of the install or (c) preclude acceptable quality reception. 2.11.2 Prohibitions on installation of an Authorized Antenna in a installation, location or maintenance of suc of the Owners or any other Person; or+ li Committee.. the Committee may also proi on any real property which such Owner 4 control under the Gbverninn Document i Committeo is not entitled to exclusively use or also has the power to prohibit or receiving device that does not meet 2.11.3 Review after Installation. The Committee may review the location and installation of an Authorized Antenna after it is installed; Aftei its review, the Committee may require that the Authorized Antenna be moved to a preferred location (if one has been designated) for safety reasons or to comply with reasonable restrictions subject to this Section and applicable law. 2.11.4 RiestatertreM dL Applloable Law. This Section is intended to be a tiesmtemen# of the atuhotity, gtanied to the Committee under the law. All amendments, modifications. restatelrtents;and intetpretatious of the law applicable to the installation, use or imaintimance of'an antenna or over-tho;4*-receiving device shall be interpreted to amend, modify, restate or interpret Chia Section. 2.12 TRASH. bash must be stored in sanitary trash contahters may be left'or stored outdoors. Owners:must store trash c yard am& (ouf bf.sight of other Lots; Condomidluhas .Pioject Assoc Ptopaty), ,or in designated ltoah areasnow scheduled collection requirod, to 'have ,their trash picked up ,behind' the side yard' gad tespottsiblerfor pa -. g aay'sddltidow, ost ma' truing $oar this,manam -25 containers. No gash or ntamets in the fenced -side ation Property and Master times. ''Owners will he Owners will be solely f hash pickup.' 360r.39072CCCa31 $3935112 1110M 2.13 OWNER -INSTALLED IMPROVEMENTS. 113.1 Outdoors. No Person shall .install any permanent outdoor Improvements on: a Lot or Condominium if the Improvements ace visible from other, Lots, Condominiums or imin'the streets, the Master Property or PtojcctAssociation Property, without the prior written approval of the Design Review Committee obtained in accordance with Article V and the Rules and Regulations Exam —pies of outdoor improvements that require prior Committee apptovalsinclude thefullowing: (a) Roof -mounted equipment, including heating, ventilation and air conditioning equipment, vents or ducts; (b) Screening structures that ate intended to hide roof -mounted Improvements (such Improvements may be hidden from view only by extension of the main structure); (c) Modifications to the building exteriors including room additions, second -story additions or other cosmetic or structural changes in the architectural elements of the Residence, A Permanent athletic equipment (portable athletic equipment may be used in front yards or street areas but it must be brought indoors or out of the view of other Lots or Condominiums when not in use); (e) Sunshades, awnings or patio covers; () Accessory structures such as sheds, barns and casitas; (g) Paint or other surface finishes (unless the paint or finished used is the same as originally used by Declarant on the Improvement or the same as previously approved in writing by the Committee); fences or walls; and (h) (i) fences or wails. The foregoing lisf is The Committee has the p are not listed above. t)iud en are: Front yard landscaping and hardscape, including flatwork and Rear yard landscaping and hardseape, including flatwotk and but it is not intended to be an exhaustive list. ow and approval. of other Improvements that mature, potted'.;plants and portable barbecue construct outdoor -26- to on their Lots or re'if priofrreview tents installed by ir, replacement or 4- 760?-Mr2 CKS%53051,12 MOM to 2132 of tile' Lot in acc thrve'(3),mouths shall comply wit 113.3 No. Owner, or 'other resident ofthe reflective mafetiel or othet-materw, Owner shall in necessary and 2 13A No Liability. 't4glther the Declarant n r the Master Association shall be liable or responsible fm airy damage that iesuits f OM Improvemo"t instaUed,: consuucted or: modifiod'•by or at the direction of an Owner. OWUM are 11dvised to'coosult and use qualified, consaltagts, and contractors when iirseaIlia& consttuctiag or: modifyltig Improvements on .the Owaet's tact or Condominium 2-16 DRAINAGE. T ere shall, be no interference with or obstruction of the established sutflroe dtrunags.pattem(s) over any ',Lot Condominirrn, Project Association Property Wax r+ssoeiat, .Property fn the pivpprtleA,, unless an adequate alternative Provision is . P?�per draitiege, . 2.16.1 Established Drainage. Any alteration of the established drainage pattern must at all times comply with all applicable local tmvenmrentai requirements. For the _27_ 3W7-M721CCIMS3835r 12 1/1Ub6 Purpose hereof, "established" drainage is defined as;thc drainage which exists at the time that such Lot, Condominium, Master Association Property or Project Association, Property is conveyed to an Owner, .Project Association or the, r Association ,{as Master applicable) qom Declarant, or as shown on any Plan approved by the On romittee, Established d drainage includes drainage to and from property lying outside the Properties . 2.161 Surface Surface Drainage Improvements, the established drainage system, on, a� Lot or. Condominium may consist.,of any or all of the follow drainage.ing. Cathen orconcrete,swailes,, concrete channels, catch. basins with turderground,drainagepipet!0es, mounted gutters, or downspouts. {'Surface Drainage Imprommena'). FAch Owner shall maintain, ItPakit, And replace and keep free from I debtisor obstructions all Surface Drainage Improvements, if gfiY,d on t, locatehe, Ownerndominiun1Cxc4Wthowfbr.*hich 's Lot or Co'a I .. i 1.1- 'L ,�' 2.163. Sub -Drains. Each Owner, by accepting a grant deed to his. Lot ftiurn, acknowledges and unditstands that. in connection with are devi 4 Dwlahant'rnsy have i lQPmeat of Lof bj. installed one or more "drain lines" beneath the �sujfice& of ji ,6ndominium {'Sub -Drains'). the Sub and all annuiten, tt Ony, not Therefore, no Owner may install, ells, modify.; remove or replace arty Surface Lrtprovements or'Sub lhains located within each Owner's Lot o; Drainage ut,finit making alternative. drainage, atrartgemeats approved by _the ,Committee and govemmexltal agencies: Owner -installed irrigation systems must by installed and maintained applicable to prevent 2.,17 WATER SUPPLY SYSTEM.No i, water Softener individual 'Ail water supply, sewage'disposal'ot -sysW11 isPertnitted on any Lot or Condominium:_unless sucksystem is designed; located, constructed and equipped in accordance will[; the re ' quit recommendations _ements, standards and . L endations of Any water district having juzisdiction,'the�City,. County„ Committee and ail oarej, ble governmental author, , ty, the Design Review mmittee ti'iffi, applies cs4n, jurisdiction- 2.18 VIEW OBSTRUCTIONS: , Fach Owner by accepting a deed to a Lot or Condominium,hezeby,aelmowledges that a L ny:consUuction or installation by,D6chuant may, impair the view ofAtA owner and hereby consents to such, 1n, I I palunpat orc;6tnlc�onshattieconstfuci4plaftted"bi.I No other1ropmvement maintairiirlypon any Lot or bDadbiftlithint in such location or o -,such height as to -uniessbriably obstruct the view from Ad Condbil'i _JacenU Lot or munum (We&ed P��*lto the front and tear Ur&: bouudales:.or Lot. lines, as Z,110ahll% OftheAffected Property. Each . . W, L ' 'L'-- -- and U Owner L .,a Protected view1which extends only to front a ftw,1-1kit boundaries or. Lot Imes of the Owner's 1101 or, 06winnifin-an,, as,' APPikAble. Iffirefe is a jispute.b6tween owne Ij ermCMoinj the obStructiou', f 0 a view from a Lot - or lq�unn, the dispute shall be submitted to: the Des, Review view 2n� Cpavoittm whose - derision in such matters be binding-, Any dens Lot, shift Condomiainuf which heni or w.yegetation maintained Won any 01 vegetation restricts the protected view of any Owtiet shall he removed or **cnwsc altered to the "*fiction of the, bejjgn,,-Re*lew -.-Commiftle, if it 3607-290721CM153835112 U10% determines that the maintenance of such item or vegetation in its then existing state is contrary to the purposes or provisions of this Master Declaration.. If an Owner fails to perform necessary pruning, trimming, or thinning, the Master Association shall have the right, after Notice and Hearing,to enter upon such Lot or Condominium foi the purpose of' performing such work- The Design Review Committee'ahall ensure that the vegetation on the Master Association Property and the Master Maintenance. Areas maintained by the Master Association is cut at such intervals so that the view of any Owner is not unreasonably obstructed. 2.19 SOLAR ENERGY SYSTEMS. In accordance with Civil Code Sections 714 and 714.1. each Owner may install a solar energy system (as defined in California Civil Code Section 801..5), on his Lot or Condominium to serve his domestic needs, so long as (a) the design and location of the solar energy system meet: the requirements. of all applicable governmental ordinances, and (b) the design and location receive the prior written approval of the Design Review Committee. 220 RIGHTS OF DISABLED.. Subject to Article V, each Owner may modify his Residence and the route leading to the front door of his Residence, at his sole expense to facilitate access to his Residence by persons who are blind, visually'impaired, deaf or physically disabled, or to alter conditions which could be hazardous to such, persons, is accordance with California Civil Code'Section 1360 or any other applicable law.. 2..21 TEMPORARY BUILDINGS.. No outbuilding, tent, shack, shed or other temporary building or Improvement may be placed upon any portion of the Properties either temporarily or permanently, without the prior written consent of the Design Review Committee. No garage, carport, nailer, camper, motor home, recreation vehicle or other vehicle may be used as a residence in the Properties, either temporarily or permanently. 2.22 MASTER PROPERTY. The Master' Property, may not be altered without the Board's prior written consent. No Owner or Project Association shall place or install any sign or other improvement oz., alter m. remove the Improvements on the Master Property unless such placement installation or alternation is first approved in writing by the Board. 221 DRILLING. No oil drilling, oil, gas or mineral development operations, oil refining, geothermal exploration or development quarrying or mining operations of any kind may be conducted'on the Properties, nor ate oil wells; tanks, tunnels or mineral excavations or shafts permitted upon the surface of any Lot Condominium orProject Association Property ot. within five hundred feet (500') below the surface of the Properties. No derrick or other structure designed for; use in boring for water, oil, geothermal heat or natural gas may be erected, malataeaed of permitted on any.Lot Condominium or Project Association Property. 2:24 STORMWATER POLLUTANT CONTROL. The Properties is subject to the provisions of the federal Clean Water Act by application of its municipal component known as the National Pollutant Discharge'Elimination System ("NPOEV). NPD13S is implemented by the State of California (through its. statewide: general NPDES, permits) and the County (through its Municipal Storm Water Petnrit), each of which Impose procedures known as best 11111111189ement practices ("BAFft 1) for "the handling and dischmile'of ruff fro m the Properties into storm drains and waterways. BMPs govern activities on the Properties before, during, and .29- >s07-29077ccasr53e3s1.12 1/10" after• construction. The Master Association and the Owners shall comply with any NPDES requirements and post -construction BMPs that may apply to the Properties. 2.25 POST -TENSION CONCRETE SLABS. Concrete slabs for Residences constructed in the Properties may be reinforced with a grid of steel cable installed in the concrete slab and then tightened to create extremely high tension. This type of slab is commonly known as a "Post-Iension Slab.',' Cutting into a Post -Tension Slab for any reason (e.g, to install a floor safe, to remodel plumbing, etc) is very hazardous and may result in serious damage to the Residence, personal injury, of both_ Each Owner shalt determine if his Residence has been constructed with a Post•Tenslon Slab and, if so agrees: (a) Owner shall' not cut into or otherwise tamper `with the Post- .Iension.Siab; (b) Owner shall not permit or allow any other Person to cut into or tamper withtthe Post -Tension Slab so long as Owner owns any interest in the Residence; (c) Owner shall disclose the existence of the Post -Tension Slab to any Person who rents, leases or purchases the Residence from Owner, and (d) Owner shall indemnify and hold Declarant and Declarant's agents, free and harmless from and against any and all claims, damages, losses of other liability (including attorneys' fees and costs of court) arising from any breach of this covenant by Owner. ARTICLE III DISCLOSURES This Ankle contains information from thitd-patty sources such as consultants, government agencies and public records, for use as a starting point for further independent ( investigation by each Owner_ Declatant does not warrant the accuracy or completeness of the 4 , t matters disclosed below, and no Person may rely on the mattes disclosed below as a substitute for independent investigation Owners ate advised that this Article is intended to provide information that was available as of the date of Recordation. Declarant is under no obligation to update or revise any information disclosed in this Article. 3.1 NO REPRESENTATIONS OR WARRANTIES. No representations or Wattanties, express or implied, have been given by Declatant, the Master Association or their agents, in connection with the Properties, its physical condition, zoning, compliance with law, flumss for intended use, or in connection with the subdivision,' We, operation, maintenance, cost of maintenance, taxes or regulation of the Properties as a planned unit development, except as expressly provided in this Master Declaration, as originally submitted by Declatant to the DRE, or as provided by Declarant to the fuat,Owner of each Lot or Condominium. 3.2 PRIVATE STREETS AND GATES. 3.2.1 Use of Andalusia Entry Facilities_ Access to the Properties is Provided over the Andalusia Entry Facilities. The Andalusia Entry Facilities include a number of restricted -access gazes. Also, the Andalusia Entry Facilities include the Club Entry Facilities that provide access to the Andalusia Country Club and the Racquet Club. the use of the Andalusia Entry Facilities and entry gates will be shared by all persons desiring access to the Properties, including: Q) the Master Association and the Owners, nd their, families, 'guests, agents and employees, (ii) the Golf Comse Property owner and, Andalusia Country Club', members, guests, agents and employees; (iii) Declarant; (iv) construction personae! acid 130- 3601-Mr2XCCR9153833612 Ina w bn equipment worsting on the construction of Itnprovernents within the Properties, and ;;fie Golf Course Property: (v) members of the publie'and other persons ;related to the safe and marketing of the Properties, as described in SerriedISZOf this Declaration; and (vi) all persons granted access tights pmsaant to the !entry Use Agtcement.'As a result of these.multiple tights of access oval the, Andalusia Entry Facilities, access into the,PtopottIes--may be open to the public for an extended period of time. 32.12 Club Entry Facilities Operation and Masntenaace. Under the terms of the Entry Use Agreement,' fast Declarant and'then:th er Golf' Course' will have the right and responsibility to operate, manage; insure the lnb Entry Feeil' W1 c includes the tight to'estabiish policies andptoced for the east n Street Almonte entrygates; Declarant and the owner of tl}e Golf Co' Pt tty it have the ri to control access through the entry gates including, providing no atrol,;provtding e, ically- operated (unmanned) access.control .ptviding personnel to control access at the entry or Providing a combination of such methods. If access control personnel are utilized, Declarant and the owner of the Golf Course Property shall' have the right to determine the hours of service and number of such personnel 3.2.3 Cost. of Club Entry Facilities Operation. As more particularly described in the Eutiy'Use Agtrtattent, the owner of the Golf Course Property will pay a share of the costs of dw opceatiot memagernent'and insurance of the Club Entry Facilities, with the MasterAesoclation being te"Psibli fist tine balance of such costs. 3:2 A, Aso Security. Tice cuirty gates are not intended to provide privacy or e Owriets aad,lheg ptopett within the Properties.All methods of access control garmng; access to ms: rropettres ihetafoxe, Owners. ate cautioned Against. a;false sense of secmityand ate encotuaged,to undettake no leas than normal and, customary measures:to protect the safety of peraons and piope ty wUhirr, the Properties. Neither the Declarant; the Master Association sot the owner of'ttre Golf C OUMPropetiyy are responsible to provide security within the Properties, and up roptesorttaHons art ;merle' as to the adequacy of any controlled access 33 GRADING. the grading design in the Properties should not be altered to redirect surface water flow toward the Lots or Condominiums or onto adjacent property, or to trap water so that it ponds or floods. Grading modifications arc subject to law, approval by the Board, and the terms of any Recorded drainage easements. r Condominium in the Property are delineated or parcel maps that are 3S CHANGE IN PLANS. Declarant has the tight to develop the Annexable Territory with improvements that may be different in design, size, character, style and price from those in Phase 1 or any other Phase. 31- 3607-290721ccasM8751 12 MOM 3.6 NO ENHANCED PROTECTION AGREEMENT. No language contained in this Master Declaration, any Notice of Addition or any Supplemental Master Declaration shall constitute, or be interpreted to constitute, an enhanced protection agreement (-EPA'), as defined in Section 901 of the California Civil. Code. Further, no express or implied representations or warranties Horde by Declarant in any other writing are intended to constitute, or to be interpreted to constitute, an EPA. 17 CORAL MOUNTAIN REGIONAL PARK. The Coachella Valley Recreation and Park District has proposed to develop the Coral Mountain Regional Patio (YkAP') adjacent to the northwest boundary of the Properties. If developed, CMRP may include walking routs, Pedestrian, equestrian and bike trails in and around the Coral Mountains,, a cultural centedtanget station and picnic areas. Residents of the Properties may experience increased noise and vehicular andpedesttian traffic in the vicinity of CMRP and along Avenue 58 resulting from the public's use of CMRP: Neither Declarant nor the Master Association have any control over the use, operation or maintenance of CMRP 3.8 LAKE CAHUILLA RECREATIONAL AREA AND COACHELLA CANAL. Lake Cahuilla Recreational Area ("LCRA') is located to the northwest of the Properties off of Avenue 58. LCRA is situated on approximately 710 acres and is centered around Lake Cahuilla, which is fed by the Coachella Canal. The lake provides regulatory storage of irrigation water from the Coachella Canal and impounds storm waters from the mountains to the west LCRA includes such recreational activities as fishing, picnics, a swimming Pool, showers, a dump station, hoiseback/eamel tiding, hiking, recreational vehicle } moping areas and general camping areas. The recreation facilities at LCRA were developed by the Riverside County Depattment,of Parks under lease with the Coachella Valley Water District C'CVWD'). Residents may notice increased vehicular- traffic on Avenue 58 resulting from the public traveling ,to and'fiom LCRA. 3.9 DIKES NOS. 2 AND 4:. The CVWD maintains Dike Nos: 2 and 4 which are located to the west and southwest of the Properties.. the dikes are owned by the Department of the Interior. Dike No.. 2 extends from Avenue 58 to the north end of the Coral Mountains near Avenue 59. Dike No. 4 extends from the south and of the Coral Mountains from below Avenue 59 to below Avenue 65.. These dikes are intended to protect the Properties and the surrounding areas from floodwaters discharged from the upstream canyons and provide detention reservoirs to store floodwaters. the excess waters are released through the Avenue 64 Evacuation Channet, which extends about 6 miles to the Whitewater Storm Channel. Dining periods of storm flow, the dikes will hold large amounts of water and the channel will carry fast-moving water. Children, other persons and animals must be closely supervised when near the dikes and channel to prevent accidental drownings and injuties. 3:10 RURAL AREA. The Properties are located in a rural area which includes various rural land uses. As a result of the rural character of the area in the vicinity of the Properties, Lots or Condominiums may be affected by wildlife, noises, odors, reptiles or insect te life typically found in rural areas. Snakes, rodents and coyotes asome of the wildlife typically encountered in rural areas_ Owners should expect to encounter insects of all types including flies, ticks,'A6icanized (killer) bees, mosquitoes, spiders, black and red fire ants, crickets and -32. 36Gr7-M72YE;RS% 33s351"12 1/10" M aphids. Declarant and the Master Association are not responsible for wildlife conttol of eradication. I t I ELECTRIC POWER,LUM. Overhead electric transmission and Aistribution lines and two (2).Mict6wave towers are located on Avenue 58 adjacent to the Properties. Power lines and inionowave;towers produce ektremely low -frequency alecuoinagnetic Mk-) when operating'. For sonw-tkar, them has been speculation ln'thei;ciqntifi'C_ community, about health risks associated, with living near ELF-EhO snit r in i aol . _fho 'I T.;*.A I Q+.*i. on on 0 topoM the scientific evidenioe shows no ctm, re, and the NIEHS ieport did not find evidence Ufa Mcludqqra.In exposum design and siting of new I subject Is available fiont t i elechic ;and Mamwfle TER I'DiK, ksev enty72Y'inch ,wniei line tuns under portions of the Properties Ma as, own an Subdivision Maps for the Properties. (the "Fasieww'A -the - � -33- 30729072CCM538351.12 I/10M L11 No'dief the Mastel Association, IMY Project Association nor any Owner may interfere with the OPc1afion, maintenance or repair of the water line., For purposes of this Section, 'interference,, includes excavation, planting hem and coveting the Easement Area with Permanent improvements' such as concrete flarwork (except lot street Improvements and landscaping OtiginallY installed by Declarant). 3.14 IRRIGATION AND GOLF COURSE PROPERTY, PRIORITY litigation systems serving the Master Association P The designed to be supplied with Property' Master Maintenance Area potable watet purchased by, are the Master Asiociatililm, from the Coachella VaIICY Water 'Disaict. Nevertheless, the irrigation system ,for these arm is also planned to be supplied withnon-poti6le water from the Coachella Canal purchased by owner, Of the Golf Course Property and stored'injakes on the Golf Course pfopeiV The feat - ' the Water purchased fromtheCoachella Canal is to irrigate the pitoilly"of. greens and hirways (if the delf. ,,0Course PfQMV. Therefore, in the event CVWD limits the amount Of,witif availatile to the toPerties and the Golf Course Propetty.firom the have first nrini;tv f'n ti,. Coachella Canal the Golf Course PriipetW - I will 3.15 WATER WEjI& the CVWD ate located at the bow over the Properties as necessatytq ofthe Golf Courser Pm,n_&Atv uAll �, wells. �outsc Property I , perty the irrigation 34 6 TRUbdY, )f the Pro;icitiej,ac open F PGAr WEST. West is a. masiti notice wells which are owned and maintained by erdes; The CVWD will have an easement the MISS MMC on Madison Street and Avenue and from Trilogy. to the north of the Properties across Avenue consisting of more than 2,200, acres which 3-18 EXtSTLNd HOMES AND C6 . * , MWG I)EVEWPMMT,: Existing, homes,outsilde the Properties willsturound tlWPIbpWiCs,toth,west,— f- " south boundary of the, Properties, and at the 'ith IiiMadison Street at the• Patformed at these homes includesPO wast,comer of the Propetfie& Cqued.Mses likticultu!Al and equestrilan uses,' The Properties are,abo, -34- 3W7-M7ACCRS%53A35J12 I/IQ006 0 situated in an area of continuing ,residmfiai development. New residential developments we Proposcd'to the northwest of lie Propintles I I along Avenue 58. Residents may notice increased noise and construction, trafric,rainimn; fiom the'developmentof new residential communities adjacent to the Properties. 3-19 GOAT FARM, An existing goat fum is located to the east of the Properties across Monroe Street. Residents may notice increased noise and odor resulting from the normal operations of the goat farm. .3-20 DISCLOSURE REGARDING RACQUET CLUB AND FITNESS CENTER the Racquet Club and Fitness, Clen - to ("JU "fW cyab") is a swim, fitness and tennis &c1lity. IN" die Golf Course Property, Membaship.lin die,Raoquet Club shall pass with title to each Lot orCandor , ninium, 'idthe Ptopetdcs- 6woirihipof a Lot or Condominium sh I all be the sole qualification ,for membership, in, the Club.'. . The Racquet` Club is owned and operated ,sepan ,wiy liom:thv'Propetties. Individuals other than Owners, will be allowed to join the Rae mt Club on such terms and conditions as are established by the Racquet Club. The Master Association shall pay a fee to the owner of the Racquet Club each month for membership In the Racquet Club for each Owner of 8 Lot or. Condominium in the ert Prop' — ("M0mbmh4,rAw*). The Metribm'lu - is � pits pfe8 Feeds Put of the f6r, the Masitei Association and will be billed to each Ownet as Part of the annual Common Asscissin"_. 'The 11"I,M=b"ip Teqshall be tbe'amount as stated in the. most or Cofidigniat6i ,Fee st recenV Budget per month per Lot Tho,Metribetabil) Fe-eJOY-ba Increased by owner of ibe Racquet Club, sub' corftloc&hl� - .5 0 this OVA to the same as 140mas"In AnD11111 Asstsis"Ients Section 7 f, is SW beo!iitatIon-,,h6Wev0i the, Membership Fee cannot be increased to meet emergency as described in Section 7,5.9(c) cfth6;Maqter Declaration,. The Master Association is Ob'DOW.,topay tbe-Membot4Fee fot 6" Let or Condominium regardless of whether or, not the MadwAisoclatio ' '11 Mi - emesuch M Fee fiam. the Owners.,. The owner of -the 12aagttet Chili give llic, „Wsiet.AMQhtlon at least sixty (60) days notice of any increase in the Membershit) Fee. The arrangement between the Mager Association,and the' owner which is described in this Section is established in the R*pd Club Use 4A4 between Declarant and the Master, Association. Paritiant 116 -thh' a¢rce ' ic, owner of the ssociation ifthe d the amount as, as ptovidad of the Master to tiie , Masten: WW'W: CiteM-Adaster Association in compliance with these gball be obligated to accept the conveyance and maintain the Asikiclation-PWperty defined in this Mastat Declaration. -35- 360?-M72CCRM3X351,12 1110106 3.21 GOLF COURSE DISCLOSURES. AS A MATERIAL CONDIIION IO DECLARANT'S WILLINGNESS TO CONVEY RESIDENCES IO OWNERS, EACH OWNER, BY ACCEPTANCE OF IITLE TO A LOT OR CONDOMINIUM, ACKNOWLEDGES, UNDERSIANDS AND AGREES IO IHE FOLLOWING: 3_21A USE OF FACILITIES. THE PROPERTIES ARE CONSTRUCTED ADJACENT TO A GOLF COURSE, WHICH IS A PRIVATE FACILIIY. THE PURCHASE OF A RESIDENCE IN IHE PROPERTIES DOES NOT CONFER UPON THE OWNER IHE RIGHI TO USE THE GOLF COURSE OR ANY OTHER GOLF FACILITIES ASSOCIATED THEREWITH ("FACILITIES" ). IN ORDEP .TO USE IHE FACILIIIES, OWNERS WELL BE REQUIRED IO PAY SUCH FEES AND SATISFY SUCH OIHER CONDIIIONS AS MAY BE REQUIRED BY THE OWNER OF IHE GOLF COURSE PROPERIY. DECLARANT HAS PROVIDED NO REPRESENTATIONS, WARRANTIES OR .ASSURANCES RESPECTING THE AVAILABILITY OF GOLF COURSE MEMBERSHIPS TO OWNERS, THEAMOUNTS OF SUCH FEES OR OIHER CONDIIIONS.. 121.2 ACCESS TO GOLF COURSE. OWNERSHIP OF A RESIDENCE DOES NOT INCLUDE ANY ACCESS RIGHTS TO OR OVER THE GOLF COURSE FROM THE RESIDENCE AND RESIDENTS ARE EXPRESSLY PROHIBIIED FROM ANY ACCESS TO THE GOLF COURSE FROM THE RESIDENCES. 321-3 GOLF BALL OVERFLIGHT AND DAMAGE. LIVING ADJACENT IO OR NEAR THE GOLF COURSE CARRIES WITH II THE RISK OF DAMAGE CAUSED To PERSONS AND PROPERTY BY GOLF BALLS ENIERING THE PROPERTIES FROM THE GOLF COURSE. DECLARANT HAS PROVIDED NO ASSURANCES WHATSOEVER CONCERNING THE FREQUENCY WITH WHICH GOLF BALLS WILL ENTER THE PROPERTIES AND HASTO PROVIDED NO GUARANIIES AS MITIGATE SUCH ENTRY. WHAT, IF ANY, ACTION MAYBE TAKEN BY THE GOLF COURSE OWNER IO 3,21.4 WATER-OVERSPRAY. THE GOLF COURSE MAY BE SERVED BY. NON -POTABLE .WELL WATEROR CANAL WATER. THERE MAY BEOVERSPRAY OF. SUCH WATER ONTO THE PROPERTIES WHICH MAY HAVE AN ADVERSE IMPACT LANDSCAPING AND; IMPROVEMENTS LOCATED ON THE LOTS AND THE PROPERIIE§. 3.21,5 PESTICIDE OVERSPRAY. THERE MAY BE AN OVERSPRAY ONTO THE PROPERTIES OF PESTICIDES, HERBICIDES AND FERTILIZER APPLIED TO THE GOLF COURSE. THESE SUBSTANCES MAY HAVE AN ADZE AFFECT ON LANDSCAPING AND IMPROVEMENTS LOCAIED ON THE LOTS AND THE PROPERTIES, AND -,MAY TEMPORARILY -CAUSE UNPLEASANT ODORS IO AFFECT PFR C(1Wc.nwr. ruc r i,ra ..,.. �......_ _ 3.216: GOLF COURSE- NOISE. GOLF COURSE USE BEGINS llvIlI . IATELY AFTER DAYLIGHT UP TO SEVEN (7) DAYS PER WEEK AND GOLF COURSE MAINTENANCE INCLUDING HWGAIION MAY BE CARRIED ON DURING NIGHTTDKE'AND DAYLIGHT;HOURS, IN ADDIIION, NOISE AND LIGHTS WILL BE -36- 360I-M rZ CL'M f 38351 12 1110106 PRODUCED FROM ANY GOLF COURSE CLUBHOUSE, DRIVING RANGE AND PARKING LOT_ AS A RESULT, EACH OWNER ACKNOWLEDGES AND UNDERSTANDS THAT GOLF COURSE USE AND MAINIENANCE WILL CREATE NOISE AND OIHER DISTURBANCES WHICH MAY RESULT IN INCONVENIENCE AND DISTURBANCE TO RESIDENTS OF THE PROPERTIES. 3.21.7 VIEW OBSTRUCTION. THE GOLF COURSE ACHIEVES IIS ATTRACTIVE CONDITION THROUGH THE CULTIVATION OF A VARIETY OF TURF, SHRUBS AND TREES. AS IREES AND SHRUBS MATURE, AS NEW TREES AND SHRUBS ARE PLANIED TO ENHANCE THE CONDITION OF THE GOLF COURSE, AND AS OTHER GOLF COURSE IMPROVEMENTS OR FACILITIES ARE CONSTRUCTED FOR THE BENEFIT OF THE GOLF COURSE, VIEWS OF THE GOLF COURSE FROM THE ADJACENT LOTS WILL BE IMPACTED AND EVEN BLOCKED. DECLARANT AND THE COURSE OWNER MAKE NO REPRESENTATION IHAI VIEWS EXISTING BEYOND THE LOT LINES OR UNIT BOUNDARY OF A LOT OR CONDOMINIUM, AS APPLICABLE, WILL BE PRESERVED, ANDTHEYASSUME NO RESPONSIBILITY FOR MAINTAINING GOLF COURSE LANDSCAPING AND OTHER IMPROVEMENTS OR FACILITIES IN A PARTICULAR MANNER TO IMPACT OR PROTECT ANY SUCH VIEWS.. 3.21.8 RECONFIGURATION OF GOLF COURSE. IHE COURSE OWNER HAS THE RIGHT TO OPERATE AND MAINTAIN THE GOLF COURSE PROPERTY IN ANY MANNER IHAI II DEEMS NECESSARY FOR THE.13ENEFICIAL USE OF THE GOLF COURSE. AS A RESULI, THE GOLF COURSE PROPERTY MAY UNDERGO RECONSIRUCTION, RECONFIGURATION. AND REGRADING FROM TIME TO TIME, AND SUCH WORK MAY CHANGE IHE LAYOUT OF THE COURSE AND THE LOCATION OF LANDSCAPING, AND MAY CAUSE PERIODS OF EXIRA NOISE, EARTH VIBRATION AND DUST. 3.21.9 CONTINUATION OF GOLF COURSE USE_ DECLARANI CAN PROVIDE NO REPRESENIAIIONS OR PROMISES THAT IHE GOLF COURSE WILL CONTINUE TO BE USED AS A GOLF COURSE FOR ANY PARTICULAR PERIOD OF TIME.. USE OF THE GOLF COURSE COULD CHANGE IN IHE FUTURE, AND ANY FUIURE USES ARE UNKNOWN BY DECLARANT_ 3.21.10 GOLF COURSE REPRESENTATIVE. IHE MASTER N SHALL PROVIDE THECOURSE OWNER WITH WRITTEN NOTICE OF fGS OF THE BOARD AS,'IF SUCH PERSON WERE AN OWNER THE WER SHALL BE ENTITLED,, WITHOUT OBLIGATION, TO HAVE A JIVE PRESENT. AT ALL SUCH BOARD MEEIINGS ("GOLF COURSE ITIYE'j, IN AN` -ADVISORY CAPACITY ONLY, WITHOUT ANY RIGHT MATTERS COMING BEFORE THE BOARD. OWNERS, BY ACCEPTANCE OF A.DEED TO THEIR LOT OR CONDOMINIUM, FOR THEMSELVES AND,ON BEHALF OF THEIR FAMILY, BUSINESS AND SOCIAL GUESTS AND TENANTS, RELEASE DECLARANT; AND THE OWNER OF IHE GOLF GOIJRSE AND ]HEIR RESPECTIVE PARTNERS, OFFICERS, DIRECTORS, Eel) -37- 36os x�ornccxs� s3ess�,�a vimoe i SHAREHOLDERS, IRUSTEES, AGENIS, LESSEES AND EMPLOYEES (COLLECTIVELY THE "RELEASED PARTIES'1, FROM ALL CLAIMS, DEMANDS, EXPENSES, DAMAGES, COSTS, CAUSES OF ACTION, OBLIGATIONS; AITORNEY FEES AND LIABILITIES INCLUDING, WITHOUTLIMIIAIION, DAMAGE TO RESIDENCES AND OTHER PROPERTY DAMAGE AND DAMAGES FOR PERSONAL INIURY OR DEATH (COLLECTIVELY THE "RELEASED CLAWS-1 WHICH IN ANY WAY ARISE FROM OR RELAIE IO THE MATTERS DISCLOSED ABOVE. OWNERS SHALL INDEMNIFY, DEFEND AND HOLD THE RELEASED PARTIES FREE AND HARMLESS FROM ALL RELEASED CLAIMS MADE BY THE BUSINESS OR SOCIAL GUESTS OR IENANTS OF OWNERS AGAINST ANY OF IHE RELEASED PARTIES. 122 NOTICE OF SUPPLEMENTAL REAL PROPERTY TAX BILL. Section 1102..6c of the California Civil Code requires sellers of real property to provide the following notice to prospective putchasers: Notice of Supplemental Property Tax Bill Califomia property tax law requires the Assessor to revalue real property at the time the ownership of the property changes. Because of this law, you may receive one or two supplemental tax bills, depending on when your loan closes_ the supplemental tax bills are not mailed to your lender If you have arranged for Your property tax payments to be paid through an impound account, the supplemental tax -bills will not be paid by your lender. It is your responsibility to { pay these supplemental bills directly to the Tax Collector. If you have any questions concerning this matter, please callyotu"local Tax:Colleetot's Office.. 3,23 ADDITIONAL PROVISIONS. There may be provisions of various laws, including the Davis -Stirling Common Interest Development Act codified at Sections 1.350, et seq. of the California Civil Code and the federal Fair Housing Act codified at Title 42 United States Code, Section-3601 et seg,'which may supplement or override the Governing Documents. Declarant makes no representations or warranties regarding the future enforceability of any portion of the Governing Documents., ARTICLE TV THE MASTER ASSOCIATION 4.1 GENERAL DUTIES AND POWERS_ the Master Association has the duties and powers enumerated and described in the Governing Documents, in addition to the general and implied powers of a nonprofit mutual benefit corporation, generally to do all things that a corporation organized. under the laws of the State of Califomia may lawfully, ' do which are necessary or proper in operating foi the genctal.welfare ofthe Owners, subject only to the limits on the exercise of such powers listed in the Governing Documents. Unless otherwise indicated in the Articles Bylaws, this Master: Declaration,. or the Supplemental Master Declarations, the Powers of the, Master Association may exercised by the Board, Neither the Articles nor Bylaws shall,, for any reason, be amended or otherwise changed so as to be inconsistent with this Miaste Declaration. If there should exist any ambiguity in any provision of the Articles or Bylaws,.then.such provision'shall be'constxued, to the extent possible, so as to be consistent with -38- 2607-290721CCRSh53935112 rn0" s the provisions of this Mastet;Decimation. jq0thing in this Mastet. Declaration shall prevent the eteation,:pursuant;to Pioject Declarations;, of Project Associations. to assess. regulate, maintain or manage the portions of the PttlpaltieS subject to such Project Dec, 690oas, or to own or control potions thereof for the common use 01 benefit of the Ownets of iota or Condominiums in thrice portions orme rropernes subject to such>Piojea Declarations 42 SPECIFIC DUTIES AND POWERS. In addition to its general powers and duties, the Mastet Association has the following specific powers and duties. 4.2.1 Master Propotty. The powerand duty to accept, maintaitrarul manage the Master Property in accordence,wlth the Qoverning Documents,. The Mastet Association may itlstall orretnoye capital Improvements;omthe:lvfaster1�,73narty Ttu.stlfow..:Aer, s .. of tetutisn any improvement on: [M 41.2 Utilities_ The power and duty to obtain, for the benefit of the Properties, all commonly metered water, gas and cleetric services, and the power, but not the duty, to provide for trash collection and cable of master television service. 4i3 r Granting fthta The power to giant exclusive or nonexclusive ea�tnents lioettses,, rights Of 'way or.fee uiteiests>in the Master Association Property to the 0 42A Employ Personnel. the power to employ Persons necessaty for the eti'ective operation and maintenance of the Master Property, including legal, management and accounting services. 4.2.5 Insurance. The power and duty to keep insurance for the Master Property in accordance with this Mastro Deelatatiort. -39- 3M7-230rAccRsr539351 12 I/10" : 4.2.6 Sewers and Storm Drains. the power. and duty to maintain any private sewer systems, private, storm drains, or private drainage facilities in the Master Association Property in accordance with the Governing Documents. 4.2.7 Maintenance Guidelines- The power and duty to (a) operate, maintain and inspect the Master Property and its various components in conformity with any Maintenance Guidelines and any maintenance manual, and (b) review any maintenance manual for necessary or appropriate revisions no less than annually after the Board has prepared the Budget. 4.2.8 Rules and Regulations.. The power, but not the duty, to adopt, amend, repeal, and create exceptions to, the Rules and Regulations. (a) Maedards jor Enjorceablllry. Io be valid and enforceable, a Rule must satisfy all the following requirements: () The Rule must be in writing; 00 The Rule is within the authority of the Board conferred by law or by this Master Declaration, the Articles or the Bylaws; (iii) The Rule is not inconsistent with governing law, this Master Declaration, the Articles, or the Bylaws; (iv) The Rule is adopted, amended or repealed in good faith and in substantial compliance with the requirements of Article 4 of Iitle 6 of Part 4 of Division 2 Of the California Civil Code; (v) The Rule is reasonable; and (vi) the Rule complies with the requirements of California Civil Code Section 1357 110 (as amended from time to time)_ (b) Areas of Regulation. The Rules and Regulations may concern use of the Properties, signs, paddag restrictions, minimum standards of property maintenance, and any other matter under the Master Association°s jurisdiction. s on Regulation. Rules and ons must apply uniformly to all Owners and must comeply with this MasterDeclaratin and r all applicable state and local laws. 40- 3607.290720Ca51538351 12 1110106 R (i) The Board must provide proposed change in a Covered Rule to the members. at least thin ohanO,' except fix an Emergency we Change (defined below) ithe-Masten. notice of a the i the (ii) the decision on a proposed change shall be made at a Board meeting after consideration of comments made by the members of the Master Association; (iii) The Board shall deliver Notice ofthe adopted change.to every member of the Master Association within fifteen (15) days of adoption. If rho change was an Emergency Rule Change, the notice shall include the text of the Emergency Rule Change,, and the date on which the Emergency Rule Change expires; (v) A Notice required by this Section 4.2.8(d) is subject to California Civil Code Section 1,350.7. (vi) A Rule change made pursuant to this Section 42.8(d) may be reversed as provided in California Civil Code Section 1357.140. does not apply to Rules that do not meet the definition of or 4.2.9 Borrowings;l The power, but not the duty, to borrow money for oses purpauthorlted by the Articles, Bylaws, Master Declaration, any Supplemental Master Decclatatious Warty Notice of Addition, and to use the Master Association Property as security furibe borrowing:; 42,10 Contrnete The power;, but not the duty, to enter` into contracts; Ibis fachides contracts with Owners m other 'Persons to provide services or to maintain hip"Mmis in'the PrOWr s and elsewhere Which the Master Association is not otherwise tegttited to ptovrde or maintain by'diis Nestor Declamtioa -41- 3e01sswaocRsi538351u MOM 4.2.11 Use Agreements. the power and duty to execute the Entry Use Agreement and the Racquet Club Use Agreement, and any amendments or restatements thereof, and to comply with the rights and obligations of these agreements, including without limitation, the obligations to pay the Shared Expenses and Membership Fee, respectively, and to perform such other duties as are specifically set forth therein. 4.2.12 Telecommunications Contract_ Notwithstanding anything in the Governing Documents to the contrary, the Board shall have the power to enter into, accept an assignment of, or otherwise cause the Master Association to comply with the tams and provisions of an exclusive telecommunications services contract ("Telecommunications Contract l with a telecommunications service provider ("Service Provider'), pursuant to which the Service Provider shall serve as the exclusive provider of Telecommunications Services to each Lot or Condominium in the Properties. The Board shall only enter into, accept an assignment of, or otherwise cause the Master Association to comply with the terms of the Telecommunications Contract if the Board determines that the Telecommunications Contract is in the best interests of the Master Association. Although not exhaustive, the Board shall consider the following factors in making such a determination: (a) Initial Term and Extensions. The initial terns of the Telecommunications Contract should not exceed five (5) years; and, if the Ielecommunications Contract provides for automatic extensions, the length of each such extension should also not exceed five (5) years. (b) Termination. The Telecommunications Contract should provide that: (i) at least six (6) months prior to the expiration of either the initial or any extended term of the Telecommunications Contract, the entire Membership of the Master Association may, without cause, with the vote or written approval of at least sixty percent (606/o) of all Members other than Declarant, prevent any automatic extension that the Telecommunications Contract may provide for, and thereby allow the Telecommunications Contract to expire, and (ii) at any time, the Board may terminate the Telecommunications Contract if, in the sole discretion of the Board, the Service Provider fails to provide quality, state-of--the-art Telecommunications Services. (c) Fees. Whether the monthly fee charged to the Master Association by the Service Provider for the provision of the Telecommunications Services to all Of the Lots or Condominiums represents a discount from the comparable retail fees charged by the Service Provider in the general geographic area in which the Properties is located, and, if'so, the amount of such discount. (d) Instelladon oJ' Telecommunications Facilities. Whether. the Service Provider is solely responsible for the installation, and the cost thereof, of all of the Ielecommunications Facilities necessary to provide Telecommunications Services to each Lot or Condominium. (e) Renralal df Telecwminankatlons Fadlldes. Whether the Service Provider has the 44tIO remove the telecommunications Facilities upon expiration or termination of the Telecommunicatioes Contract: -42- 3607.29072XCCEM 5383S1.12 Ia0M6 4.2.13 Indemnification. (a) For Master Association Representatives. Io the fullest extent authorized by law, the Master Association has the power and duty to indemnify Board members, Master Association officers, Design Review Committee members, and all other Master Association committee members for all damages, pay all expenses incurred, and satisfy any judgment or fine levied as a result of any action or threatened action brought because of performance ofan act or omission within what such person reasonably believed to be the scope of the Person's Master Association duties ("Of/lcid Ad'). Board members, Master Association officers, Design Review Committee members, and all other Master Association committee members are deemed to be agents ofthe Masts Association when they are performing Official Acts for purposes of obtaining indemnification from the Master Association pursuant to this Section,, The entitlement to indemnification under this Master Declaration inures to the benefit of the estate, executor, administratorand heirs of any person entitled to such indemnification- (b) For Other Agents of the Master Association, Io the fullest extent authorized by law, the Master Association has the power, but not the duty, to indemnify any other Person acting as an agent of the Master Association for damages incurred, pay expenses incurred, and satisfy any judgment or tric levied as a result of any action or threatened action because of an Official Act. (c) JWWed by Contract. the Master Association also has the power, but not the duty, to contract with any Person to provide indemnification in addition to any r indemnification authorized by law on such terms and subject to such conditions as the Master Association may impose. 4.2:I4 , Cost Centers_ .1Le power, but not the duty, to create or modify Cost Centers:,1-14 61, 4.2,15 Annexing Additional Property: The power, but not the duty, to annex, pursuant to Section 162, additional property to the Properties encumbered by this Master Declaration 42.16 Vehicle Restrictions. the power granted in Section 2.9 to identify Authorized Vehicles or Prohibited Vehicles and to modify the Governing Documents on vehicles. 4.2.17 License and Use Agreements. The Master Association may enter into agreements with Declazant or any homeowners Master Association having jurisdiction over the Annexable Territory to share. facilities located on the Master Association Property ("FiiC ty') with the Owners of Residences in the Amrexable Territory that is not annexed to the Properties. Any such agreement shall be in form NO content acceptable to Declatant, the Board of Directors (without the approval of Owners) and Declatant or the board of directors of any adjacent homeowners Master Association and shall include provisions regarding use and shining of maintenance costs for the Facility., -43- 3W"9072%CCM 53a361 12 1/10/06 any Portion of the Master PFOPe"Yv subject to the prior written approval of the Board, any reasonable restrictions or conditions the Board may impose, and the right of the Board to revoke such license, remove the Improvements and charge the Owner for the cost of'such removal 42,19 Prohibited Functions. employees famish officePrOP", Uaft4ger, The Master Association shall not hire any 01 Oil'& facilities, 61 use any Master Association' Property for an -on- sits" Manage. The Master Agaqciation Manager shall at:all times be a professional managet,' employed as an independent contractor Of agent working at its own place of =ness- (b) Off -she Nuisances. The Masher Association Shall not use any Master Association funds or resources to abate any annoyance or nuisance emanating from outside the Physical boundaries of the Properties. (C) PoildcalActivides. The MastelAssociat, Inot;conduet, ton, shall sponsor, OutiCipat64a or expend :funds or resources toward any activity, campaign Or event, including any social or political' carnpaiM event or activity which does not directly and exclusively, pertain to the authorized activities of thbMaker Association, Furthermore,the Master Association shall not Participate in federal, state or local activities or activities Intended to influence a governmental action affecting areas outside the Properties (eg. endorsement or Support Of legislative or administrative actions by a local govemm support or campaign for Or against candidates forentalauthority)" r* shall it elected or appointed office or ballot proposals - There shall be no amendment of this Section so long as Declarairt owns.any, Properties. Portions of the '. q.z-zu Standing to Resolve Disputes. The Muster Association shall have standing to - lftstitute,, defend, settle or intervene in litigation itigation, alternative dispute resolution Of with I " - inistrative p, oceFiling" (Oack an 'Adlafi') in its own name as the real party in interest and 04,19ming the OWBOM Ill matters pertaining to (a) damage to the Master Association PrElPerty,A),darnage to portions of the Lots which the Master ssoc Associatiorr Is obligated to, nuuntlt,L,n"ol-,t,epalr,.-and ,(c) damage to portions of the Lots whIch'arises P I ut of, of . is integrally related to, damage to -the, Master "Associa-t* t, p Association is I obligated W im [OPertY or portionsof the Lois that the Master —,matritaki or repair (each. a �"Ciab�" i I , Y However, the. Haslet. Associationshall not have standing tonstitute, defend, set-11C101 intervene in any Action in any 'Batter Pertaining only to an individual Lot and not included in subsections (b) and (e) above. I minePOCInerit OF an Action by the Master Association pertaining to, any Claim hsections,(ii), (b) or (c) above, the Master Association's Ociation's standing.",shall be mg: the of such Action, the Owners, Shia be liaised fio in ew Action ov�malntaining a pending Acilon'on the' %rcise Of as I exclusive standing to an Action on a I " same Claim, The Nestor' particular dalm'slhsll, not 1)6 IJ3C to any Affirmative obligation on the part of the Master Association to 1i di -- , the , , , stniss Action, except in the Master Association's sole discretion, and MA -44- 3607-790nWXR315383s1 12 1/10/W 4 221 Rights of Entry and Enforcement The powcrbut.not.the duty,after Notice and Hearing to enter, upon any Lot Condominium , or Ptoject Associatirm',Pwperry without being. liable to Any Owner or Project Association, except for physical damage caused by Stich entry, for the PWP� of enforcing by peaceful means , the provisions of this Master Dwhustion, or, fin the putpose of maintaining or repairing any such Lot, Condominium or PlOixt, Association Ptopetty if for any reason whatsoever the Owner Or Project Association responsible therefor fails to maintain and repair any such area as requited by the Governing Documents; provided that no 401119 Of construction on any. such Lot, Condominium or project Association Pro .I . � . Petty'.may'be shored or demolished except pursuant to judicial proceedings. The cost of any enforcement action or'any palptemmee,sad, repair completed in compliance with then provisions is the responsibilityI of the Owner, or Project Association and shall be assessed against the responsible Owner OrPrqject ARSOCIatiON "a's a Special Assessment. The responsible Owner or Project Association shall PAY promptly,all amounts due for such work, and the costs and expenses of collection. Any physical damage caused by an entry upon any Lot, Condominium or Project Association Property shall be repaired by the entering patty. 43 STANDARD OF CARE, NON -LIABILITY. 4.3.1 Scope of Powers and Standard of Care. (a) the Design Review C-ornmit—om -------- ' ' orpther corm by the Governing Documents. or Is% :the committees have the right to decide toact or the light to act in the future, 2s Rf Powam. Rights and Powers corrknied on the her, committees Or, tep-tesenta, tives Outhe, Master not duties. obligations 01 disi6ifities-charge&UPOR 1 are ckplicid y identified as including duties or w- Unless,a'duty to act is imposed on the Board, ittm W representatives of the Master Association Board, the Design Review Committee and the lot act- Any decision not to act is not a waive, of (b) Business Affairs. This Section4.3.1(b) applies to Board member actions in connection with management, PmOtmeL maintenance and operations, insurance, contracts and finances, and Design Review Committee member actions. Each Board member shall perform the duties of a Board member in good faith, in a manner the Board member believes to be in the best Interests Of the Master Association and with such care, b1cludhIll le"Ortable'in ,quid6 as an ordinarily prudent person In a like position would use under similar citerrmstaliCtIaL, ;W1611 Peifii'ming his duties, a Board -member is: entitled to rely on h*MM t ,O-P- " fWtOns, rePtn*Or atalements;,including fimarciatdata pt 'epared orpresented by: W Otte (1) ormdrci Officenr,or -employees ofthe Masts - Association whom the Board member believes to be reliable and corapetent in the matters Presented; 00 Counsel, independent accountants or other Person&as to matters which the Board member, believe's to be within such Petson's professional I or expert competence; or -45- 3607-290rAMRS538351 12 1110ID6 (iii) A committee of the Board upon which the Board member does not serve, as to matters under its designated authority, which committee the Board member, believes to merit confidence, so long six, in any such case, the Board member acts in good faith, after reasonable inquiry when the need therefor is indicated by the circumstances and without knowledge that would pause such reliance to:be unwarranted. Ihis Section 4.3 1(b) is intended to be a restatement of the business judgment ntle established in applicable law as it applies to the Master Association All modifications and interpretations of the business judgment rule applicable to the Master Association shall be interpreted to modify and interpret this Section 4.31(b). (c) Master Assoelation Goverxaxce. This Section U applies to Board actions and Design Review Committee decisions in ooimection with interpretation and enforcement of the Governing Documents, architectural and, landscaping control, regulation of uses within the Properties, rule making and oversight ofcommittees Actions takeri;or,decisto_w: made in connection with these matters shall be reasonable, fair and nondiscriminatory.. 4.32 Non -Liability. (a) General Rule. No Person is liable to any other Person (other than the Master Association or a patty claiming in the name of the Master Association) ,for injuries.or damage resulting fiom such Person's Official Acts, creept'to_ the extent that such injuties br damage result from the'Person's willful or malicious misconduct No kerson is liable to, the Hasler Association (or to any party claiming in the name of the Master Association) for injuties.or damage resulting"fiom such Petson's Official Acts, except to the extent that such injuries or damage result from such Person's:negligence or willful or malicious misconduct The Master Association:is not liable -fox damage'to.ptoperty in the Properties unless caused by the rucgligence,of the Master Association, the Board, the Master Association's officers, the Manager or the Manager's staff (b) NonllabXV of Volunteer Board Members and 0jokers.. A volunteer Board member or volunteer Master Association officer shall not be personally liable to any Person who suffers injury, including bodily injury, emotional distress, wrongful death or property damage or loss as a result of the tortious act or omission of the volunteer officer or Board member if all applicable conditions specified in Section 1365.7 of the California Civil Code arc met (c) NonliabiMy Section 1365.9, no Owner shall be liable for against the Owner solely because of the Ow Property so long as the"Master Association k include coverage for general liability of the California Civil Code $eetioA 13655 and,that brought_ of Owxm_ Pursuant to California Civil Code any cause of action is tortwhich "samba ebroueht Q 46- 3607-MIXCM%538351r7 1/10M is 44 MEMBERSHIP. 4A I Generally Every Owner shall automatically acquire a Membership in the Master Association and retain the Membership until such Owners Lot or Condominium ownership ceases, at which time such Owner's Membership shall automatically pease -- Ownership of a Lot or Condominium is the sole qualification fox Membership , Memberships ate not assignable except to the Person to whom title to the Lot or Condominium is tmn-qffiMA and the 4A.2 TMnsfir.. ledged ox-alienated in any way, em and then only to under M a 0111:12ser. before the K,-:e j M. aship of any Owner may not be transferred, ansfef of encumbrance of such Ownees Lot; ,' or ree or Mortgagee . of- the Owner!$ [At or, ad will not be reflected in the'.tecords of, the I to ls�Lot of Condominium woontlacuptuchmu t ul Owner's Membership eights to the eo' nk W— d must beAelivered-to dxx;'Msstex, Association at ion o contract seller "I remain liable for all of or Condominium which accrue before tide to contract seller fails or reftes to delegate, his v the Close of Escrow, the Master Association ftw now Owner on. the MasterAssocWon's'rocoids. Such; fC'C".,Maymcweodt6,mtister Association WtW .eosvhxvojvCdin.cha0glrx j its records. 4.4.3 Classes of Membership- The Master Association classes of voting Membership an as follows: M-7-113 EM Vote May be cast for any Lot or Condominium. Cleas;`Wmembet is Declausint The ChLu B 15ka 3601-2907ZCCRM SM35 1. t2 1/10" subject to Assessment. the Class B Membership shall convert to Class A Membership on the earlier to occur of the following events: (1050) Lots and Condominiums W The Close Of Escrow te in the Properties and AnnexabletTerrrtoryofOne thousand Fifty Oil the fifth Offi) anniversary of the first Close of Escrow in the.Phase of the Properties for which a Final Subdivision Public by -the DRE.or Report was most recently issued Escrow in Phase L (iii) The twenty-fifth (25") anniversary of the'fust Close of (c) Class C Board AppoinLaent Right. Declarant shall have a Class C Board appointment light;(whether or not Declarant is an Owner)_ The Class C Board appointment right shall not be considered a part of the voting power of the Master Association_ The Class C Board appointment right entities Declarant to select a majority of the members'of the Board of Directors until the Class C Ietmination Date.. The "Class C Termination DaW shall be the earlier to occur of the following events: Seven W the Close of, Escrow for the sale of Six Hundred ty- ,even (677) Lots and Condominiums in the Properties and Annexable Territory; the Phase of the Ptopeerrics.l by the.DRE; or first Close.of Escrow in Oil) the twenty-fifth (25°') anniversary of the first Close of _Escrtiwin. Phase, 1 4-z4,-.646 : 4-Z4-yO31 4.44 Selection of Twenty Percent of the Board.. Declarant (whether ornot Declarant is an Owner) is entitled to select twenty percent (20%) of the members of the Board of Directors until the Selection Iermination Date. The "Selectioa Termination Date" shall be the earlier to occur of'the following events: (a) The Close of Escrow for the sale of Six Hundred Seventy -Seven (677) Lots and Condominiums in the Properties and Armexable Territory; (b) The fifth (5") anniversary of the first Close of Escrow in the Phase of' Properties for which a Final Subdivision Public Report was most recently issued by the DRE; or in Phase 1. (c) The twenty-fifth (25r) anniversary of'the first Close of Escrow 360749071MCCRA$3835112 LAU" V C} 45 Master: VOTING RIGHTS voting power represented by All voting right i C5.2 and 12.3 is a' Ctess -$ Me ices the 'vote or. are subject to the Governing r this Master Declaration and 41 of the Bylaws, on to "earring Documents which ex R aifwd 1�'f 00:9 power before action a Owners' representing such q i A vo.Nog power, and (b) the other than Declarant, a m of the Class B requires the vote of of a majority of a i.&tsken shall then percentage of both Association's Class 4:52 Vote to Initiate Construction Defect Claim.. Commencing on the date of the first annual meeting of Owners, Declarant relinquishes control over the Master Association's ability to decide whether to initiate a cpaslruction defectelaim under the lzigtit;to Repair Low (a "Defect Claim"):., ,This meaps that:Dedarant, cunBnt employees andagenWof Declarant, Board members who are appointed- by Declarant, :Boatd 'meinbers elected by Ia majority o€ votr s cast by 13extaraat, .and: all other i?ersoas. whose vote or written: con, is inconsistent with the intent of the. preeadirig,sentence, are prohibited fiom participating and voting in any decfsion;of the Master Assoeiation or Owners to initiate a Defect Claim. 4.5.3 Joint Ownership. When more than one (I) Person holds an interest in any Lot or Condominium (' co -owners'), each co-owner may attend any Master Association meeting, but only one (1) co-owner shall be entitled Waerciae the single.vote to Which the Lot or Condominium is entitled. Co owners owning rho majmity intereWin a Lot or Coadominium may designate hiwriting one (I.)'of'thefr nurnberto vote, $tact orial votessshall not be siloW4 and the vote for each !Lot or Condo' miniunt. snap be exercised, if at all, as a unit_ Where no voting co owner is designated or if, the dedgaation is revoked, the vote for the Lot or Cotulominiom "shall be exercised as the car -owners owning the majority interests in the Lot or col domittigns'ao. Unless the Master Association receives a written objection in advance f3o111; a cozowner, it sFiall be odniluslyely, pxt�umeci'fhat the voting co-owner is acting with,his coowners"consent; No vote may be,castfbc auyLot or Condominium if`tha coowa present' in person orby proxy awning rho majority igtetests•in,sach Lot or Condominium failto agree to toe vote,orzothet action. The pom'otirig co-owner or co -owners are jointly and severally itrsponsible 'ftn`sU obiigatioas Wpowd on; the jointly -owned Lot or Condominium and are entiderito aU other benefits ref owaashrp. A1140,M— u b and determinations lawfully made by the Master Asaociatioq.in accordanee with the roting;pencentages established in the Governing I)oerraimtts ate bincitog:on ail Owners attd their successors in interest. 4.6 ACTIONS SIIBJECT_ TQ_D_ XO ARANT'S VETO.. , Declarant has the right to me tsar=e roso,Or narrow torthe sale of a Lot or;Condominium•:in the -49- 3607-29072VXRSI 538351,13 MOM 0 or any, portion of the Annexable Territory. The following actions are subject to veto by Declarant: 4.6.1 Change in Design. Any change in the general, overall architectural and landscaping design of the Properties, 4.62 Design Review Committee. The adoption of and any change to the Design Guidelines, all decisions of the Design Review Committee, any decisions made on appeal to the Board, and any decision to terminate the Design Review Committee. Regulations. 4.63 Rules and Regulations. The adoption of any change to the Rules and 4-61.4 Cost Centers.. The creation of or modification of a Cost Center, 4.6.5 Annexations. The annexation to the Properties of real property Pursuant to Section 16.2; and 4-6-6 Amendments, All proposed amendments to this Section 4A, Article 1, Article 11, Article III, Article Vill, Article XI, Article 301, Article XV or Article XVI_ ARTICLE V DESIGN REVIEW COMMITTEE 1.2 POWERS AND DUTIES. 5 2.1'General PO*Vra and Duties. The Design Review Committee shall 0 Wit all plarisarui specifications subtfiltie&for its approval, including inspection FM to assure Ormfolmity Vftpisna approved by the Design Review Committee, 2.2 Issuance of Standards. The Design Review Committee shall annually issue its Design'Guidelines and provide notice of any., reqnitements fbi'ifitftt Association -so- 3601-290 72\CCP.S\ 538351.12 M0106 3 - V'0-1 lt;TAJ"'1V -3-zi - 11 51h /- , s"otv $2 l approval' of proposed Improvements The notice shall describe the types of proposed Improvements that' require Master Association approval and shall include a copy of the proced* used to review and approve or, disapproYe any proposed Improvements. The Design Cniideliaes may require a fee: to accompany each application. for approval, and may identify additional factors which the Design Review Committee will consider in reviewing submissions. The Design}Review Committee may provide that "it; imposes be uniform. or that fees be 5.2.3 Retaining Consultants. The Design Review Committee has the Power, but not the duty, to retain licensed architects, contractors and other professionals to advise its members in connection with decisions. 5 3 REVIEW OF PLANS AND SEECIFICAT1ON5. SI- 3607-2907ZCCRM 538351.12 MOM signing or withholding a signature., Only the Committee may approve or disapprove an Application. A decision on a proposed Improvement shall be consistent with California law, made in good faith and may not be unreasonable, arbitrary or capricious. If disapproved, the written decision shall include both an explanation of why the proposedImprovement is disapproved and a desotiption of the procedures for reconsideration by the Board. The Design Review Committee shall deliver its written approval, disapproval,>or request for additional information or materials to the Applicant at the'addtess listed in the Application no later than'the' date that is forty-five (45)calendat days after the date on wW61 the Design Review Committee has received the complete Application'("Review Deodtlne'J. If, on the Review Deadline, the Committee has failed to deliver to ithe Applicant its written approval, disapproval, or request for additional information or materials, then the Application shall be deemed approved, and at the request of the Applicant, the Manager or a representative of the Board or the Committee shall execute a written approval thereof within0teen.(15) days of such request. 5.33 Standard for Approval. the Design Review Committee shall approve an Application only if it determines that (a) installation, construction or alterations of the Improvements in'the locations proposed will not be detrimental to the appearance of the Properties as a whole, (b) the appearance of the proposed Improvements will be in harmony with the existing Improvements and the overall design, theme in the Properties, (c) installation, conshction or alteration of the proposed "Improvements will not detract from the beauty, wholesomeness and attractiveness of the Properties or the enjoyment of the Properties by the r Owners, (d) maintenance of'the proposed Improvements will not become a burden on the Master .: Association,;(e) the proposed Improvements are consistent with the Governing Documents and (f) the proposed change does not; violate soy governing provision of law, including the Fair Employmcil't and Housing Act, or' o'buihfing'oode or other applicable law governing land use or public safety., The Design Review Committee; may consider the impact of views from other Residences, Condominiums or Lois (partioularly views of the Golf Course Property) along with other factors including reasonable privacy ;tight claims, passage of light and air, beneficial shading and other factors in reviewing, approving or disapproving any proposed landscaping, construction or other Improvements_ however, neithct; the Declarant not the Master Association warrants that any views in the Properes-are protected: No Residence, Condominium or Lot is guaranteed the existence or unobstructed continuation of any particular view outside of the front or rest Lot lines or Unit boundaries of the Owner's Lot or Condominium, as applicable. The . Design Review Committee may allow Owners of Lots adjacent to the Golf' Course Property to enclose their Rear Yard Areas. The enclosures must meet all aesthetic and,othet requirements established by the Design Review Committee. IU Design Review Carimf#tee may disapprove installation of any wall, fence or other Improvement in the yard portion of a Lot adjsow, to fie. Golf Course Property if the Committee determines 'such 'improvement Will unreasonably iatetfere with::thc.view of an adjacent Lot or Condominium In review of an application, the Committee shall not make any, detetminatioti as to non -aesthetic factors such as general safety, fire protection, noise mitigation or compliance with building codes or. applicable industry building standards: 5 3.4 Conditions of Approval. The Design Review Committee may condition its approval of an Application for any Improvement on any one (1) or more of the -52- 3607-Ml2 CCaa1538351.12 I110106 following: (a) the Applicant's agreement to furnish the Master Association with seemity acceptable to the Master Association against any mechanic's lien or other encumbrance which may be Recorded against the Master Association Property or another Owner's Lot or Condominium as a result of such work; (b) such changes to the Application as the Design Review Committee considers appropriate; (c) the Applicant's agreement to giant to the Master Association or other Owners such easements as ate made reasonably necessary by the existence of the hmptovemeat; (d) the Applicant's agreement to install water, gas; elecWrat or other. utility, meters to, measure any ineteased'utility consumption; (e) the Applicant'sagm, ement to to to the Master Aasoelation for the cost of maintaining the Improvement (should the Master Association agree to accept maintenance responsibility for the,Improyemeni as built); (w(f) the, m Applicant's agreement to complete the proposed work within a stated period of time. the Comittee may. also require' the Applicant, prior to commencing wotk, to deposit with the Master. Association adegaate- funds to repair or restore any Master Property or Project Association Pwpetty that may be damaged by the Applicant or the Applicant's contractors.. The lesign Review: Committee will determine the actual amount of the deposit in each case, butthe amount shall be at least enough to cover the cost of repahing or restoring damage that is reasonably foreseeable to the Design Review Committee.. The deposit shall be refundable to the extent the Design Review Committee finds that; the work of Improvement is complete, and that the Master Property or Project Association Property was not damaged or was restored at least to the condition it was in prior to the commencement of work. each Application. The security dep Association Property as a result of'I specified in the Design Guidelines. time to time at the discretion of the may also require submission of aik approving or disapproving material requirements of the City artdlor altetatlons permitted under this Mast asonabie securitydeposit with of repairing damage to Master security deposit may i Review Committee. roes ag(I; specilica6ons or other information before d the Applicant shall meet any review or permit before making any, construction, installation or 5.3.5 Matters Outside Scope ,of Approval. the Design Review C imtnhtee's approval or disapproval of each Application shall based solely on the aesthetic-^ considetadonsa HAW -in this Article. -Apptova( of any°Application does not constitute a finding by the Design Review Committee tbafthe Application orany portion of the Application (a) iti¢otlxrrates good engineering praeticcs, 6), complies with applicable nce, cable law, ordinacode, or regulation, including zoning laws, and: building and safety codes, (c) complies with the tequh ementsA any public titflity,.or (d) is permissible undeuthe terms of any easement, license, pelmiG mortgage, deed of Oust of other recorded or unrecorded instrument (other than the Govetrzing"I)ocuments) that affects the land. Nothing in this Mastet Declaration shall be construed to require Design Committee approval of any construction, reconstruction, installation, Mnoval or alteration of an Improvement by Declarant or by the Master Association, 53.6 Exculpation of Committee. By submitting an Application, each Applicant is deemed to agree that neither the Design Review Committee, not the members themof, nor Doclatant, not their respective agents, employees, attorneys or consultants shall be liable to any Person for. �YL+� -53-. 3607-29072UCCM 339351,12 1110M N (a) any defect in any Improvement constructed by or on behalf' of the Applicant pursuant to an approved Application; (b) any loss, damage, or injury to Persons or property arising out of or in any way connected with work performed by or on behalf of the Applicant pursuant to an approved Application; or (c) any loss, damage, or injury to Persons or property arising out of or in any way connected with the performance of the Design Review Committee's duties hereunder, unless due to willful misconduct or gross negligence.. 5.4 RF,LATIONSHIP TO PROJECT ASSOCIATION the conditions or requirements imposed by the a Project Association are binding and conclusi Applicant. 5.5 MEETINGS AND ACTIONS OF THE DESIGN REVIEW COMMITTEE The Design Review Committee shall meet as necessary to perform its duties. the Design f—' Review Committee may, by resolution unanimously adopted in writing, dcalgnate a Design L Review Committee Replesentaiive (who may, but need not be one of its members) to !alto any action or perform any duties for and an -behalf' of the Design Review Cowamilifce except the granting of'variances. In the absence of such designation, the!vote or written noitsent of a majority of the Design Review Committee constitutes an act of the Design Review Committee. Alt ---- --I- I.,. -w .' - ... -. _. ,.. on the 5,6 NO WAIVER OF FUTURE APPROVALS, The Design Review Committee's epptr3val of any proposals, plans and specifications or drawings for any work done or proposed in coatteation with any matter requiting the,Design Review Committee's approval does not waive the right to withhold approval of any similar proposals, plans and specifications, drawings or mattets suhssquently or additionally submitted foi approval, 5.7 COMPENSATION; OF MEMBERS. the Design Review Committee's members shall teceive;nn compensatlon for,setvices rendered, other than reimbursement fox - expenses incurred by them in"performing their duties -54- 3607-2907MCM 53835112 1r10706 5 8 INSPECTION OF WORK. The Design Review. - Coitim.fitee or its duly authorized repitisentative,mity Inspect any. work for which .approval ,of plans is required undet this Article("Wbi,**), The tight f9jitapect includes the right to require a" Ownerto take such action as may, be'niacessat I , y to remedy any noncompliance with the Design Review Committee- apptoved plans for the Wotk of with the requirements of this Master Declaration ("NonconvIlance'), 5-8.1 Notices for Inspections. When the Work is complete, the Applicant shall immediately provide the Committee with written notice. -of completion on the form prescribed by the Comn-dttee. 5.813 Remedy for. Noisompliance. The Committee shall notify the Board Iti--w9liting whPoAnOwner hils,Wtemed y any Noncompliance pursuant to the time, frame set forth b y theCotnmifte-:in fti Pes";OWdelines. After Notice and, Heariq& the 11044 shall 59, I PY )laft 001100t,the Noncomplianoe' 'and charge! the Owner for:- the Master 'S costs, or-'commetice an action for'damages or injunctive relief; as appropriate, to Noncompliance. Review, Committee may authorize -variances from of the accleiteedrral provisions, of this Master. Declaration or the Design estiietions iod hellgKAze. fl,66t- area or placement ofsttucturcs, or similar ,s_ud4'isIopq atitratobstiuctions, hardship, aesthetic of xatron'iegiu.. graphy, n h* :SUch �Vatiimces.must< be evidenced in writing, must be afthe Design Review Committee, and become effective on Recordation. It, to"a ppoml!' a MaJ914, 9 the Design Review Conuniooe's, members stapprove .any 4atiatioe moommended, by the DesJ' Review Committee Design mnd 'ee, becomes tA If variances are granted, no violation of the and restrictions in this Master Declaration shall be deemed to have to the matter for which the varianc�- ii. i uM7nn, i . Shall be borne solely by the Applicant- 11472 3607490721CCPM$3935112 IIJOM6 �.. t 12 5.I0 PRE -APPROVALS The Design Review Committee may authorize pre - approval of specified types of construction activities if, in the exercise of the Design Review Committee's Judgment, a pre -approval is appropriate to catty out the purposes of the Governing Documents. 5.11 APPEALS. If a proposed Improvement is disapproved, the applicant is entitled to reconsideration by the Board at an open meeting that satisfies the requirements of Civil Code Section 136.3 05. Ihis paragraph does not require reconsideration of a decision that is made by the Board or the Committee if the Committee has the same membership as the Board. Non - approvals made by a Project Association's board ate not appealable to the Board or Master Association Design Review Committee. This limit on appeals from Project Association board decisions is not a limit on the Project Association's board's ability to modify a decision it has issued. Each Project Association's board shall adopt procedures for appeals of Project Association design review committee decisions to the Project Association's board. ARTICLE VI PROPERTY EASEMENTS AND RIGHTS 6.1 6.1 1 Maintenance and Repair_ Declarant reserves for the benefit of the Master Association and all Master Association agents, officers and employees, nonexclusive easements over the Master Property as necessary to fulfill the obligations and perform the duties ofthe Master Association. '61-1 Utility k maintain utilities over the,Mistcr Condominiums. Declarant reserve Ietritoty., Dechuant reserves easements to install and the benefit of the Owners and their Lots or to and rights -of -way 6.13 Encroachments. Declarant reserves, for its benefit and for the benefit of all Owners and their Lots or Condominiums, a reciprocal easement appurtenant to each Lot or Condominium over the other Lots or Condominiums and the Master Property to accommodate (a) any existing encroachment of: any wall or anyra :other' Improvement installed by Declant or approved byathe DesiokR view Committee, and (b) shifting, movemeat:or natural settling of'the Residences or other. Improvements Use,of the, easements may not unreasonably interfere with each Owner's use and enjoyment of the burdened Residences 6.1A Completion of Improvements.. Declarant reserves the right and easement to enter the Properties to complete any Improvement which Declarant considers desirable to implement Declatant's development plan. 613 Owners' Easements in Master Property. Declarant reserves, for the benefit of every Owner, and each Owner's family, tenants and invitees, nonexclusive easements for pedestrian and vehicular access (all as applicable) ovet the Master Property in the Properties 56- 3607-29ar2vcctts s78351:12 rn0/06 as reasonably necessary for the use and enjoyment of each Lot or Condominium in the Properties. This easement is appurtenant to and passes with title to every Lot or Condominium in the Properties. 6.1..6 Master Wall Easements_ Declarant reserves for the benefit of the Master Association the following easements: (a) An easement over all Lots or Project Association Property abutting e; tract boundary of Master Association Property, consisting of a three (3) foot wide strip of lancl'bounded by the tract boundary or the property line separating the Lot from the Master Association Property, Project. Association Property, public property or other property lying outside the Properties (as applicable), to accommodate the footings and other structural components of any Master Wall located on or immediately adjacent to such property line, ineluding any encroachments thetcof onto'the:Lot, and (b) An easement for access over such Lots as reasonably necessary for maintaining the Master Walls and related Improvements. 6.1 7 Drainage Easements. Declarant reserves, for the benefit of the Properties, the Owners and the Master Association, reciprocal nonexclusive easements fw drainage of water over, across and on the Properties. 6.1..8 Golf Course Easements over Master Properly. Declatant reserves to s- itself, its assignees, the ownerand operato[ of the invitees, and assignees, and to membe; Golf' Course Property, their employees rs. and guests of the Andalusia Country Club, non- exclusive easements appurtenant to the Golf Course Property over all Master Property for purposes of: (a) Vehicular and pedestrian access over the Andalusia Entry Facilities for the construction, marketing and use of the Golf Course 'Property, inctu constrnary, 0) access for golf carts and maintenance vehicles authorized for use by the•owner or.operator Of the Golf Course Property, (ii) installation and rnaintemamc ,of directional and other signs, monuments and media serving the Golf Course Property, -and (ill) temporuy special event parking in conformance with applicable laws; (b) Maintenance and maintenance access to all existing and future utilities and equipment necessary for the operation and maintenance of r.. ;n..c,Xw— ..:.....i__ ,-------- . - _ . _ ... the responsibility of the - Golf Course Property owner to repaa. (c) the flight of golf balls through the air over:the Master Property" the entry of golf balls onto the Master Property and any butidings of improvements on the Master Property, and the retrieval of'golf balls from reasonably accessible: areas of the Master Piupeity. .. -57- 3607-MrACCRa1538351.12 1/1006 6.I.9 Golf'Course Easements over the Lots. Declarant reserves to itself, its assignees and the owner and operator of the Golf Course Property, a nonexclusive easement appurtenant to the Golf Coutse Property, over all Lots in the Properties and the airspace above such Lots, for the purpose of accommodating (a) the flight of golf balls through the au- over the Lots, (b) the entry of golf balls onto such Lots and any buildings and other improvements on such Lots, and (c) the retrieval of golf balls from unfenced portions of the fiont w rear yards of such Lots if such golf balls are visible from the adjacent street or fairways. 6.1.:10 Vehicular and Pedestrian Access Easements. (a) Reserved for Declarant and the AnnewNe TerrNery Declarant reserves for its benefit and for the benefit of the owners of Residences that may be' constructed in.the Annexable Territory (whether annexed to the Properties or not) easements for pedestrian and vehicular access, including construction access, over all private Andalusia Entry Facilities stteets and sidewalks located within the Properties- (b) Reserved:ror Model Homes. Declarant reserves for its benefit easements for pedestrian and vehicular ingress and egress over the Andalusia Entry Facilities serving the Properties`dwing business hours, seven (7) days per week, for access to Model Lots within the Properties which are used by Dectatant or its assignee for the sale or lease of homes with, irk,the;Propet#Ies. Declatant shal[have'the tight to assign this easement, by written assignment, to any. successor in interest. This easement shall terminate when the use of such Model Lots by Declarant or its assignee, for model homes or sales office purposes, has been permanently terminated (c) Intalm Access for MasterAssocladon and Owners. Declarant reserves for the benefit of the Master Association and the Owners, a nonexclusive interim access easement (`Interiat Amiss: SasemenP") over all private sheets and sidewalks ofthe Andalusia Entry Facilities and in Annexable Tertitoty. Declatant may grant additional Interim Access Easements in -future Phases'asmecessary to provide access to Lots for the Master Association and titre Owners, in accordance with Deeletant's development plan. Interim Access Easements are granted for purposes of vehicular and pedestrian access, but they create no obligation on the Master Association or Owners to maintain the Improvements subject to the Interim Access Easement- An Interim Access Easement shall automatically terminate as to any portion of a street that is conveyed in fee to the Master Association_ Any portion of the Interim Access Easement shell be subject to temporary relocation, or closure by Declarant in order to accommodate Declarant's construction and marketing activities, provided such relocation or closure does not prevent vehicular and peAesd tan access to any Owner's Lot or Condominium in the Properties (otherthan a Lot or Condominium owned by Declarant). 6.11'.I1 Easements for Maintenance of Master Maintenance Areas. Declaratt'teserves, for the benefit of, the'Master.Association, nonexclusive easements over each Lot and Project Assoeiafiori,Propeity in therPtopetties as rxcessaty for access and maintenance Of Master Meirtteeanao,Areas. ;140 owrtea may interfere with the Master Association's exercise of,`its rightsunder the casementsreserved in:th6s ectioe. 58- 3607-290nkC nsrs3rasr.rz MOON 6.1.12 Telecommunications Easement. Declatant reserves blanket easements (collectively, "Te%ommunicatiaes Easements') over the Properties access and for purposes iemcvo[ constructing, installing, locating altering, operating, mamtaiaesing, inspecting,. upgrading, ing and enhancing Telecommunications Facilities (collectively,. "Tefecommrrnkations Purposes") for the benefit of Declarant Sucheasements are freely transferable by Declarant to any other Person and their succestbis and assigns. No one, except. for Declatant and',Declatant's transferees, may use the Properties for 'Telecommunications Purposes: All Telecommunications Facilities shalt be owned, leased or licensed byDeclatant, as determined by Declarant, in its sole discretion and business judgment Transfer Properties of the Pr does not. imply transfer of any Telecommunications Easements or Telecommunications Facilities- The holders of the Ielecommunications Easements may, not exercise the rights reserved hereundet in any manner which will umeasonalifylnterfete with -th6 reasonable u� and enjoyment of the Properties by any Owner, ff the exercise of any. Telecommunications Easement: results in damage to the Properties, then. the easement holder who caused the damage shall: Within a'reasonable period of time, repair such damage ilf, Declatant has not conveyed the Telecommunications Easements in a Phase to another Person before -the last'Closa of Escrow is the Properties artd the Annexable Territory, then Declarant giants the Telecommunications Easements to the Master Association efrective.as of the last Close of Escrow in the Properties and the Annexable Territory. 6-2 RIGHT TO GRANT EASEMENTS. Declarant reserves easements over the Master Association Property for the exclusive use .by an Owner or Owners of contiguous Mpcftyas a yard, recreational, :gardening, and landscaping aces. Any such easement may be conveyed by the Declarant before the last, Close of Escrow for sale of a I:ot'orCondominium in ..1 the Properties and the Annexable Territory. Such, conveyance must be Which approval must not be unrcimnably withheld. The ur approved by the poard the Master Association Prop P of rite easement, the portion of Property affected;.the Lot or Condominium,to which the easement is appurtenant, and any restrictions on use of the easement area shall be identified in a Recorded grant of easement. 6.3 DELEGATION OF USE Any Owner may delegate his light to use the Master Association Property in writing to his tenants, contract pmchasets or subtenants who reside in such Owner's Residence, subject to regulation by the Board- 6-4 RIGHT OF ENTRY. 6.4 d Master Association; The: Master Association has the tight to enter the Lots or Condominftnns to inspect the Properties„ and may take whatever corrective action it determines to be necessary or proper: Entry onto any Lot or Condominium under this Subsection ?ttaY be made after at least three (3)'days' actvance:wriucn notice to the Owner of the Lot or- Condorriiniuta°°except. £ot emergency situations, which shall not require notice- , Nothing in this Subsection limits the right OEM, OwMer: [o exchrstve occupancy and control over the portion of his Lot or Coadominiurn that is not Mastet.Property, Anydartrage to a Residence, Lot or Condominiumree".A r .: e..•.... �_ .v 6.4 2 Declarant- the Declarant has the tight to enter the Lots, Condominiums, Project Association Property and the Master Property (a) to comply with -59- 3607-290721CCRM 533351.12 I/JQV6 for in accordance With the construction activities, o es- Declarant shall ptovi rrquuc,notrce Any namage to the Properties that is caused by entt under this Subsection shall be repaired by the:Declatant- Unless otherwise specified in ,the initial giant deed of a Lot or Condominium from the Declarant, this tight of emly shall automatically expire on the date that is ofcvea (11) years ftom the last Close of Escrow in thel'ioperties: 6.4.3 Owners. Each Owner shall •permit otherOwners, and 1heh representatives, to enter his Lot or Condominium'to patfam iastalhrtioas,. alterations or repairs to the mechanical of electrical services to a Lot or 'Condominium if (a) requests: for entry are made in advance,, (b)'entry is'rrrade at'a.tune reasonably eonvenlent tosthe Owrrer whose Lot or Condominium is'to be entered; and (oj the entered Lot or Condominium is left in substantially dw same condition as existed' intmediatoly'preceding such entry. Any damage to the Lot or Condorainiurti caused by emry under'thie subsection shall be repaired by the entering Owner. ARTICLE VII MASTER ASSOCIATION MAINTENANCE FUNDS AND ASSESSMENTS 7.1 PERSONAL OBLIGATION TO PAY ASSESSMENTS. Each Owner' covenants to pay to the Master Association Assessments establish4 and collected putsuanC to, this Master Declaration. The Master Assoeratku.sQ'I not levy-ot collect: any Assessment that exceeds the amount necessaryy'roctbe owt)ase fm Ali A«wae.nnnre "ineiaN.u.. t enatge ana's continuing llen on the Lot or Condominium against which such s made. Each Assess IM41'tugedter with late payment,penalties, interest,: costs and torney fees, is also.the porsvpal obligation.of the Person who was the Ownm of the 3mimum when fhtAasessrnenrapprued the personal obligation for delinquent may not pass to any new Owtret unless expressly assumed by the new Owner or I'the CaliforhWCivil Code. now a public body, agency or authority, n Property, shall not be subject to 72 ,MASTER ASSOCIATION, FUNDS- The Master Association shall establish no WO,two,(Z) separale•MasterAssoofation Maintenance Funds into which shall be deposited ay paid to"the Master-A89octad0A;and,fi+om which disbursements shall be made. the Association MalnteaaQoo.ttnda may be established, as trusYaeconnts at a banliut¢.or • —-= - oes, not expect to perform on an ,emtual ormote fi; quent basis;.and (ri) payment of -60- 3607-M?21CCRsk536351.12 1710A6 F {t deductible amounts for insurance policies which the Master Association obtains, and (c) any Other funds which the Master Association may, establish including "Cost Center Operating and Reserve Funds . As used herein "Cost Center Operating and Reserve Funds" refers to Maintenance Funds established for the purpose of paying Common Expenses attributable to a Cost Center.. All provisions of this Master Declaration requiting the vote or approval of a specified percentage of'Owners regarding Cost Center Assessments shall only require the vote or approval of the requisite percentage of Owners who are responsible for Assessments within the Cost Centel, 7.3 PURPOSE OF ASSESSMENTS- The Assessments shall be used exclusively to (a) promote the Owners' recreation, and welfare, (b) operate; improve and maintain the Master Property, and (c) discharge any other Master Association obligations under the Master Declaration Disbursements from the General Operating Fundshall be made by the Master Association for such purposes as ate necessary for the discharge of its responsibilities in this Master Declaration for the common benefit of all Owners, other than those purposes for which disbursements from the General Reserve Fund are to be used. Disbursements from the Cost Center Operating Fund 'shall be made for such purposes as are necessary for the discharge of Master Association responsibilities for the benefit of the Cost Centel, other than those purposes for which disbursements from the Cost Center Reserve Fund are to be used Disbursements from the General Reserve Fund and Cost Center Reserve Fund shall be made by the Master Association only for the purposes specified in this Article and in Section 1365.5(c) of the California Civil, Code. 7-4 WAIVER OF USE. No Owner may exempt himself from personal liability for a . / Assessments, nor release such Owner's Lot or Condominium from the liens and charges thereof; by waiving use and enjoyment of the Master Property or by abandoning such Owner's Lot or Condominium. 7:5 ASSESSMENT COMPONENTS, RATES AND EXEMPTIONS. Each Annual Assessment is amaggregate of separate Assessments for each of the Maintenance Funds, reflecting:an itemization of the amounts of prospective deposits into the General Operating and Reserve Funds, Cost Center .Operating and Reserve Funds, and any other Maintenance Fund established by the, Master Association, Annual Assessments shall be assessed against the Owners in the Properties as follows: 7:51 General Assessment Component. The General Assessment Component.is composed of Common Expenses of the Master Association exclusive of Common Expenses budgeted to the Cost Center's and shall be allocated equally among all of the Lots and Condominiums h1 the Properties: 7:52' Cost Center• Assessment Component. The Cost Center Assessment Component is that 'portion of the: Common Expenses of the Master Association composed of Cost Center Opeating and Reserve Funds budgeted exclusively to any particular Cost Center and shall be assessed to the Lots and Condominiums designated in a Supplemental Master Declaration as Lots and Condomi iums to which the exclusive of disproportionate maintenance of'such Cost Center. has: been allocated Unless otherwise provided in a Supplemental Master -61- 3607-290=CRa1538351.12 1/IOA6 Declaration, the Lots and Condominiums in each Cost Center, shall each be assessed an equal Cost Center Assessment 7.5.3 Maximum Authorized General Assessment Component For Initial Year of Operations.. During the Fiscal Year in which Annual Assessments commence, the Board may increase the General Assessment Component on each Lot and Condominium so that Percent OR%) of the Lots and Condominiums in cdon'). 'Ihis Section does not limit General addressing an "Emergency Situation" as defined 7,5.4 Maximum Authorized General Assessment Component For Subsequent Fiscal Years Dutitrg,the Fiscal Yeats following the Fiscal Year in which Annual Assessments eommoncc, the Board may'increase the General Assessment Component so that it exceeds, the Genaal;Assessment Cotponent for the immediately preceding Fiscal Year only as follows: (a) If the itiraeese, in the Genetai' Assessment Componm than.or equal to twenty percent" (20/,) of the General ,Assessment Component itntnediately preceding Fiscal Year- then theMoald mast either (i)have d shibuted'#Iu fot the crment,FisW You ilk aecocdanee with Section 1345(uj of the Califottria Civil -. % (ii) obtain the approval of Owners casting a majotityof votes in an hrcrease Electiot; a' (b) If the increase in the General Assessment Cormponen"tis greater than twenty percent (20%) of the General Assessment Comppaopt for the immediatelyptec Ping` Fiscal Year. then the Board must obtain the approval of Owners'cas ft'a nutj dtyofvotes in Increase Election. Ihis Section does not limit Annual Assessment increases necessary for addressing an "Emergency Situation" as defined in Section 7.5.9(c). 7.5.5 Maximum Authorized Cost Initial Year of Operations.. During the Fiscal Year in the Board may increase the Cost Center Assessment Coi We 7.1.6 Maximum Authorized Cost Center Assessment Component For Subsequent Fiscal Years. During the Fiscal Yeats following the Fiscal Year in which Annual -62- 3607-29072W=M 538351.12 1110196 s Assessments commence, the Board may increase the Cost Centex Assessment Component so tha only as follows: art it exceeds the Cost Centel Assessment Component for the immediately preceding Fiscal ye (a) If the increase in the Cost Center Assessment Component is less than or equal to twenty percent (20%) of the. Cost Center Assessment Component for the immediately preceding Fiscal Year, then the Board must either (1) have distributed the Budget for the current Fiscal Year in accordance with Section 1365(a) of the California Civil Code; or- 00 obtain the approval of Owners casting a majority of voles in a CC Increase Election; or (b) If the increase in the Cost Center Assessment Component is greater than twenty percent (20%) of the Cost Center Assessment Component' for, the immediately preceding Fiscal Year, then the Board must obtain the approval of Owners !casting la majority of votes in a CC Increase Election. This Section does not limit Annual Assessment increases necessary for addressing an "Emergency Situation" as defined in Section 7.5.9(c). 7.5.7 Maximum Authorized Combined Increase for Initial Year of Operations. During the Fiscal Year in which Annual Assessments commence, the Board may increase the Annual Assessment for any Cost Center so that it exceeds one hundred twenty percent (1200/6) of the amount of the Annual Assessment disclosed for Such Cost Center in the most current Budget approved by DRE at the time Annual Assessments commence only if the Board fust obtains the approval of members in a CC Increase Election 7.5.8 Maximum Authorized Combined Increase for Subsequent. Fiscal Years. After the Fiscal Year in which Annual Assessments commence, the. Board may increase the Annual Assessment for any Cost Center so that it exceeds the Am ual Assessment for the immediately preceding Fiscal Year only as follows: (a) If the increase in the Annual Assessment=for, any Cost Center is less than or equal to twenty percent (20%) of the Annual Assessment for such Cost Center for the immediately preceding Fiscal Year, then the Board must either (a) have distributed the Budget for the current Fiscal Year in accordance with Section 1365(a) of the California Civil Code, or (b) obtained the approval of the Owners casting a majority of votes in a CC Increase Election; and (b) If the increase mi the Annual Assessment for any Cost Center is greater than twenty percent (200%) of the Annual Assessment -for such ,Cost Center for the immediately preceding Fiscal Year, then the Board must obtain the approval'of Owners caning a majority of votes in a CC Increase Election. 7,5.9 Provisions Applicable to All Components of Annual Assessments. (a) Supplemeufal Annual Assessnwids. If the Board determines that the Master Association's essential functions may be properly funded by an Annual Assessment in an amount less than'the maximum authorized Annual Assessment described above, it may levy such lesser Annual Assessment If the Board determines that the estimate of -63- 3601290721CCaS1534351 12 1/I006 total charges for tho;currentyaat is at will'beootne inadequate to meet all Common Expenses, it shall immediately ileterrchine'the approximate amount of the inadequacy. Subject to the limits described in Sections 7.5:3 through 7.5.8 "above, the Board may lery a supplemental Annual Assessmait reflecting a revision of; the, total charges to be assessed against each Lot and Condominium io minimize the need for frequent adjustments in the amount of the Annual Assessrrhenta during>ihe development of the Properties, the Board may stabilize the amount of the Anmwl Assessments invoiced' to the Owaers at, a level amount calculated to defray annual Common F�tpenses doting"the time that Atmual Assessments are fluctuating due to the periodic (b) Automatic Assessment Increases. Despite any othet ptovisI of this Section 7:5, on. Declarant's ,annexation of the Annexable reiritory, the An :Assessment shalf". be automatically increased by the. additional amount if any, necessarmaintain the Master Ptopetty identified in'the Notice ofAddition as a pact of the Phase includes the Annexable rerritoty so,long as (a) the annexation is permitted by the DRE, andthe amount ofsuch increase does not result in the,l6vyof'anAnnual Assessment which is grethan the maximum potential, Annual Assessment disclosed in -all Final Subdivision Pu Reports for the'Properties (c) Emergency Shaatlons.. Fot purposes of Sections 7.5_1 through 7.5.6, an "Emergency Situation" is any one of the following; (i) An extraordinary expense required by an order of a court 1 (ii) An extraotdinaty .expense necessary to maintain the portion of the Properties for which the Master Association is responsible where a threat to personal safety in the Properties is discovered; and (iii) An extraordinary expense necessary to maintain the portion of the Properties for which the Master Association is responsible that could not have bvett reasonably foreseen by the Board ;when Preparing the Budget. Before imposing or t 6lkcYing" art Assasnent, lnusuent to this Sfibparagraph (o), the Board shall adopt a resolution containitrg wtitten findings"tegartling the recGssity of the extraotdinay expense involved and wity.Nre.e Mae was not or could not:have:been reasonably foreseen in tfie budgeting process. the resolution shall be distributed to the Ownets with the notice of the assessment 7.6 COMMENCEMENT AND COLLECTION OF ANNUAL ASSESSMENTS. 7.6.1 Commencement of Annual Assessments, Annual Assessments, "I commence against all Lots in a Phase ondhe first day.of the fist calendar month following the`` first Close of Esciow in such' Phase However, if the first Clow of Esorow.fn a Phase is for a Model Lot it shall not cause the commencement of Annual Assessments in that Phase. Annual Assessments in a Phase that includes Model Lots shall commence against all Lots and Model Lots in that Phase on the first day of the frtsf"calendatrmottth fiSUowing the close of'Escrow of the first Lot that is not a Model Lot in that Phase, Annual Assessments for fiaotioaa of a month WWI be prorated. Declarant shall pay its RiWo a rtrta`ahare of the Awua1'Assesstt ats on all -64- 3607-290MCCM538351.12 MOM unsold Lots or Condominiums for which Annual Assessments have commenced.. the Board shall fix the amount ofthe Annual Assessment against each Lot or Condominium at least thirty (30) days in advance of each Annual Assessment period. However, unless otherwise established by the Board, the initial Annual Assessments shall be assessed in accordance with the most recent Budget on file with and approved by the DRE. Written notice of any change in the amount of any Annual Assessment, Capital Improvement Assessment or Reconstruction Assessment shall be sent via first-class mail to every Owner subject thereto not less than thirty (30) nor mote than sixty (60) days before the increased Assessment becomes due. 7.6 2 Apportionment of Annual Assessments. All Annual Assessments shall be assessed uniformly and equally against the Owners and their Lots or Condominiums based on the number of Lots or Condominiums owned by each Owner (regardless of whether an Owner has consolidated two or more Lots), with the exception of Cost Center Assessments that shall be assessed equally only against Owners responsible for such Cost Center The Board has the power to require that funds in the Maintenance Funds at the end of the Fiscal Year be retained and used to reduce the following Fiscal Yeat's Annual Assessments. On dissolution of the Master Association incident to the abandonment or termination of the Properties as a planned development, any amounts remaining in any ofthe Maintenance Funds shall be distributed to or for the benefit of the Owners in the same proportions as such money was collected from the Owners. 7.63 Payment of Annual Assessments: Each Owner shall pay Annual Assessments in installments at such frequency, in such amounts and by such methods as are established by the 'Board If the Master Association incurs additional expenses because of a payment method selected by an Owner, the Master Association may charge that expense to the Owner. the Master Association does not have to apportion the expense among all Owners as a part of Annual Assessments. Each installment of Annual Assessments may be paid to the Master Association in one check or in separate checks as payments attributable to specked' Master Association Maintenance Funds_ If any payment of an Antral Assemmenrinstallment (1) is less than the amount assessed and (2) does not specify the Master Association Maintenance Fund or Funds into which it should be deposited, then the amount received shall be credited in order of priority first to the General Operating Fund, until that portion of the Annual Assessment has been satisfied, and second to the General Reserve Fund. 7.6.4 Exemption From Annual Assessments. Until the earlier to occur of (i) the Recordation of a notice of completion of an Improvement on the Master Property, or (ii) the placement of such Improvement into use, each Owner (including Declarant) shall be exempt from paying that portion of any Annual Assessment allocated to defraying expenses and reserves directly attributable to the existence and use of such Improvement Similarly, until the earlier to occur of (i) the Recordation of'a notice of completion for the Racquet -Club. or (ii) the placement of the Racquet Club into use by the Owners, each Owner shall be exempt from paying the Racquet Club Membership fee described in Section 3.20.. 7..7 CAPITAL BNPROVEMENT ASSESSMENTS:, the Board may levy, in any Fiscal Year, a Capital Improvement Assessment or: Reconstruction Assessment (either, an "Extraordinary Assessment" for purposes of this Section 7.7) to deftay, in whole or in part, the cost of any construction, repair or replacement of a capital Improvement to the Master Property. -W 3607-290724CCRMS38351 12 rnoN6 7.7.1 Limit on Extraordinary Assessments for Improvements Outside of Cost Centers., No Extraordinary Assessment may be levied in any Fiscal Year for an Improvement not included in a Cost Center which, if added to the Extraordinary Assessments already levied during such Fiscal Year (excluding Extraordinary Assessments for Cost Centers), exceed five percent (5%) of the Mastet Association's Budgeted gross expenses for such Fiscal Year (excluding Budgeted gross expenses for Cost Centers), without the vote or written consent of members casting a majority of votes at an Increase Election unless the Extraordinary Assessments are necessary for addressing an Emergency Situation as defined in Section 7.5.9(c). 7.7.2 Limit on Extraordinary Assessments for Improvements In Cost Centers. No Extraordinary Assessments may be levied in any Fiscal Year fog an Improvement in a Cost Center which, if added to the Extraordinary Assessments already levied during such Fiscal Year solely for that Cost Center, exceed five percent (51/6) of the Mastcr Association's Budgeted gross expenses fat the Cost Center for such Fiscal Year, without the vote or written consent of members casting a majority of votes at a CC Increase Election unless the Extraordinary Assessments are necessary for addressing an Emergency Situation as defined in Section 7.5.9(c). 7-73 Combined Assessments. If any Extraordinary Assessments for a Cost Center when added to Extraordinary Assessments for the current Fiscal Year cause the total amount of Extraordinary Assessments assessed under this Section 7:7 to exceed five percent (5%) of the Master Association's Budgeted gross expenses for such Fiscal Year, then the Extraordinary Assessments for the Cost Center must be approved in a CC Increase Election unless necessary for addressing an Emergency Situation as defined in Section 7.5.9(c).. ARTICLE VIII INSURANCE 8.1 DUTY TO OBTAIN INSURANCE; TYPES, the Master Association shall obtain and keep in effect at all times the following insurance coverages: 8.1.1 Public Liability. Adequate public liability insurance (including coverage for medical payments), with limits acceptable to Fannie Mae and as required by Section 1.365.9 of the California Civil Code, insuring against liability for bodily injury, death and property damage atispng &our, the activities of the Master' Association and the Owners on the MasictProperty: 812 Fire and Casualty Insurance. Fire and casualty insurance with extended coverage, without deduction fur• depreciation, in an amount as near as possible to the full replacement value of ali osi tnabie improvements on the ;Master 'Pmpetty; - ,Ibe. casualty, coverage by a rnajoityof the Mastee Association's voting power 8.1.3' Fidelity, Insurance. Fidelity insurance coverage for any Pelson handling funds of the Master Association; whether or not such persons ate compensated fox their services, in an amount not less than the estimated maximum of funds, including reserve funds, in the custody of the Person during the term of the insurance. the aggregate amount of the fidelity {6- 3607-290721CCRS1538351.12 1110/06 insurance coverage may not be less than the sum equal to one-fourth (1/4) of the Annual Assessments on all Lots or Condominiums in the Properties, plus reserve funds. 81.4 Insurance Required by Fannie Mae, Ginnie Mae and Freddie Mac. Casualty, flood, liability and fidelity insurance meeting the insurance requirements for planned unit developments established by Fannie Mae, Ginnie Mae and Freddie Mac, so long as any of these entities is a Mortgagee or Owner of a Lot or Condominium in the Properties, except to the extent such coverage is not reasonably available or has been waived in writing by the entity requiring the insurance coverage. 8.1.5 Other Insurance. Such other insurance insuring other risks customarily insured by Master Associations managing planned unit developments similar in construction, location and use. Such additional insurance may include general liability insurance and director's and officer's ertors and omissions insurance in the minimum amounts established in Section 1365.9 of the California Civil Code. 8.1,6 Beneficiaries, the Master Association's insurance shall be kept for the benefit of the Master, Association, the Owners and the Mortgagees, as their interests may appear as named insureds, subject, however, to loss payment requirements established in this Master Declatation. 8.2 WAIVER OF CLAIM AGAINST MASTER ASSOCIATION. All policies of insurance kept by or for the benefit of the Master' -Association, a Project Association and the Owners must provide that the Master Association, Project Association and lire Owners waive and release all claims against one another, the Board and Declarant, to the extent of the insurance proceeds available, whether or not the insurable damage or injury is caused by the negligence or breach of any agreement by any of the Persons. 8..3 RIGHT AND DUTY OF OWNERS TO INSURE, Each Owner is responsible for insuring his personal property and all other property and Improvements on his Lot for which' the Master Association has not purchased insurance in accordance with Section8.1 or which may be required in a:Project Decimation. Each Owner of a Condominium is responsible for insuring his personal property and any other property as required in a Project Declaration. Nothing in this Master Declaration precludes any Owner from carrying any public liability insurance he considers desirable; however, Owners' policies may not adversely affect or diminish any coverage under any of the Master Association's insurance policies.. Duplicate copies of Owners' insurance policies shall be deposited with the Master Association on request. If any loss intended to be covered by the Master Association's insurance occurs and the proceeds payable are reduced due to insurance carried by any Owner, such Owner shall assign the proceeds of the Owner's insurance to the Master Association, to the extent of such reduction, for• application to the same purposes as the reduced proceeds are to be applied. SA NOTICE OF EXPIRATION REQUIREMENTS. If available, each of the Master Association's insurance policies must contain a provision that the policy may not be canceled, terminated, materially modified or allowed to expire by its terms, without at least ten (10) days' prior written notice to the Board and Declarant, and to each Owner and Mortgagee, insurer and guarantor of a fust Mortgage who has filed a wtitten request with the carrier for such -67- 3607.29072',CCRS% 538351.12 MOM notice and every other Person in interest who requests such notice of the insurer: In addition, fidelity insurance shall provide that it may not be canceled or substantially modified without at least ten (10) days' prior written notice to any insurance trustee named pursuant to Section 8 5 and to each Fannie Mae servicer who has filed a written request with the carrier for such notice. 8.5 TRUSTEE FOR POLICIES. The Master Association is trustee of the.interests of all named insureds under the Master Association's insurance policies_ - Unless an; insurance "policy ptovides foie a different', procedure for filing. claims,all claims must be sent to the insurance carrier or"agent by ccrtified'mail and be clearly identified as.a claim. The Master Association shall keep a record of'all claims made. All insurance proceeds under any Master Association insurance policies must be paid to the Board as trustees.. the Board has the authority to negotiate loss settlements with insurance carriers, with participation, to the extent the Board desires, of fast Mortgagees who have filed written requests within ten (10) days of receipt of notice of any damage or destruction as provided in Section 9.3. The Board is authorized to make a settlement with any insurer for less than full coverage for any damage, so long as the Board acts in accordance with the standard of care established in this Master Declaration. Any two; (2) officers of the Master Associationmay sign a ,loss claim form and release form in connection with the settlement of a loss claim, and such signatures are binding on all the named insureds; A representative chosen by the Board may be named as an insured, including a trustee with whom the Master Association may enter into an insurance trust agreement and any successor to such trustee, who shall have exclusive authority to negotiate losses under any insurance policy and to perform such other functions necessary to accomplish this purpose_ 8 6 ACTIONS AS TRUSTEE_ Except as otherwise specifically provided in this Master Declaration, the Board has the exclusive tight to bind the Master Association and the Owners to all matters affecting insurance carried by the Master Association, the settlement of a loss claim, and the surrender, cancellation and modification of all such insurance. Duplicate originals or certificates of all policies of fire and casualty insurance kept by the Master Association and of all renewals thereof, together with proof of payment of premiums, shall be delivered by the Master Association to all Owners and Mottgagees who requested them in writing. 9.7 ANNUAL INSURANCE REVIEW., The Board shall review the Master t Association's insurance policies at least annually to determine the amount of the casualty and fur insurance referred to in Section S.1. If economically feasible, the Board shall obtain a current appraisal of the full replacement value of the Improvements on the Master Property, without deduction for depreciation, fiom a qualified independent insurance appraiser, before each such annual review. 8.8 REQUIREW WAIVER All of the Master Association's insurance policies insuring against physical damage must provide, if reasonably possible, for waiver of- 8.81 Subrogation of claims against the Owners and tenants of the Owners; 812 Any defense based on coinsurance; -68- 3607-29072ucas%539351 u utaoc 8.8.3 Any right of setoff, counterclaim, apportionment, proration or contribution due to other insurance not carried by the Master Association; SA 4 Any invalidity, other adverse effect or defense due to any breach of warranty or condition caused by the Master Association, any Owner or any tenant of any Owner, or arising from any act or omission of any named insured or the respective agents, contractors and employees of any insured; 8.8.5 Any right of the insurer to repair, rebuild or replace, and, if' the Improvement is not repaired, rebuilt or replaced following loss, any tight to pay under the insurance an amount less than the replacement value of the Improvements insured; 8.8.6 Notice of the assignment of any Owner of his interest in the insurance by virtue of a conveyance of any Lot or Condominium; 88.7 Any right to require any assignment of any Mortgage to the insurer; 888 Any denial of an Owner's claim because of negligent acts by the Master Association or other Owners; and 8.8.9 Prejudice of the insurance by any acts or omissions of Owners that are not under the Master Association's control. ARTICLE IX DESTRUCTION OF IMPROVEMENTS 9.1 RESTORATION OF THE PROPERTIES. Except as otherwise authorized by the Owners, if any portion of the Properties which the Master Association is responsible for maintaining is destroyed, the Master Association shall restore the same to its former condition as promptly as practical. The Master Association shall use the proceeds of its insurance for reconstruction or repair of the Properties unless otherwise authorized in this Master Declaration or by the Owners.. the Board shall commence such reconstruction promptly.. the Properties shall be reconstructed or rebuilt substantially in accordance with the original construction plans if they are available, unless changes recommended by the Design Review Committee have been approved by the Owners. If the insurance proceeds amount to at least ninety-five percent (950/9) of the estimated cost of restoration and repair, the Board shall levy a Reconstruction Assessment to provide the additional funds necessary for such reconstruction. If the insurance proceeds amount to less than ninety-five percent (95%) of the estimated cost of restoration and repair, the Board may levy a Reconstruction Assessment and proceed with the testoration and repair only if both of the following conditions ("Conditions To Reconstrucfdon') have been satisfied: (a) the levy of a Reconstruction Assessment to pay the costs of restoration and repair of the Properties is approved by the Owners, and (b) within one (1) year after the date on which the destruction occurred, the Board Records a certificate of the resolution authorizing the restoration and repair ("Reconstruction Certiykafe').. If either of the Conditions to Reconstruction does not occur following a. destruction for which insurance proceeds available for restoration and repair are less than ninety-five percent (95%) of the estimated cost of restoration and repair, then the Board shall deposit the funds in the Operating Fund. -69- 7607-2907Z"RS1539351 12 I/10/06 9.2 DAMAGE TO RESIDENCES -RECONSTRUCTION If all or any portion of any Residence or other Improvements on a Lot is damaged or destroyed by fire or other casualty, the Owner of the damaged Lot shall rebuild, repair or reconstruct the Residence and Improvements in a manner which will restore them substantially to their appearance and condition immediately before the casualty of as otherwise approved by the Design Review Committee. If all or any portion of an Owner's Lot is destroyed to such an extent that it would be unpractical to restore the Lot or rebuild damaged Improvements, the Owner shall install landscaping Improvements on the Lot in accordance with Design Review Committee Guidelines. The Owner of any damaged Lot or Residence and the Design Review Committee shall proceed with all due diligence, and the Owner shall cause reconstruction or installation of landscape Improvements to commence within six (6) months after the damage occurs and to be completed within twelve (12) months after damage occurs, unless prevented by causes beyond such Owner's reasonable control. The transfer of s damaged Lot or a Lot with a damaged Residence to another Person will not extend the time allowed in this Section for commencement and completion of reconsttuction or installation of landscape Improvements by the transferee. However, no such transferee will be required to commence or complete reconstruction or installation of landscape Improvements in less than thirty (30) days from the date the transferee acquired title to the Lot. 9.3 DESTRUCTION OF IMPROVEMENTS FOR CONDOMINIUM PROJECTS.. Provisions concerning the destruction of'Impievements in a Condominium Project shall be set forth in a Project Declaration. 9.4 NOTICE TO OWNERS AND LISTED MORTGAGEES. the Board, immediately on having knowledge of any damage or destruction affecting a material portion of the Master Association Property shall promptly notify all Owners and Mortgagees, insurers and guarantors of first Mortgages on Lots in the Properties who have filed a written request for such notice with the Board. ARTICLE X EMINENT DOMAIN The term 'taking" as used in this Article means inverse condemnation by exercise of the power of eminent domain or by sale under threat of the exercise of the power of eminent domain. The Board shall represent the Owners in any proceedings, negotiations, settlements, or agreements regarding takings. All takings proceeds shall be payable to the Master Association for the benefit of* the Owners and thee Mottgagees, and shall be distributed to such Owners and Mortgagees as provided in this Article.. 10.1 CONDEMNATION OF MASTER ASSOCIATION PROPERTY_ If there is a taking of'the Master Association Property, then the award in condemnation shall be paid to the Master Association and shall be deposited in the Operating Fund. 10.2 CONDEMNATION OF LOTS. If there is a taking of a Lot, the award in condemnation shall be paid to the Owner of the Lot; however, such award shall first be applied to the balance then due on any Mortgages encumbering such Owner's Lot, in order of priority. -70- 3607-290121CCas539351.12 utaa 10.3 CONDEMNATION OF CONDOMINIUMS Provisions concerning the condemnation of Condominiums in a Condominium Project shall be set forth in a Project Declaration- 10A NOTICE TO OWNERS AND MORTGAGEES. the Board, on learning of any condemnation proceeding affecting a material portion of the Master Association Ptoperty, or any threat thereof, shall promptly notify all Owners and those Mortgagees, insurers and guarantors of Mortgages on Lots in the Properties who have filed a written request for such notice with the Master Association. ARTICLE XI RIGHTS OF MORTGAGEES I1..1 GENERAL PROTECTIONS. No amendment or violation of this Master Declaration defeats or tenders invalid the rights of the Mortgagee under any Mortgage encumbering one (1) of more Lots or Condominiums made in good faith and for value, provided that after, the foreclosure of any such Mortgage, the foreclosed Lot(s) or Condominium(s) will retrain subject to this Master Declaration. For purposes of this Master Declaration, "first Mortgage" means a Mortgage with fast priority over other Mortgages or Deeds of Trust on a Lot or Condominium, and "first Mortgagee" means the Mottgagee.of a fitstMortgage. For putposes of any provisions of the Governing Documents which require the vote or approval of a specified percentage of first Mortgagees, such vote or approval; is determined based on one (I) vote for each Lot or Condominium encumbered by each such first Mortgage.. 11.2 ADDITIONAL RIGHTS.. In order to induce the VA, FHA Freddie Mac, Ginnie Mae and Fannie Mae to participate in the financing of the sale of Lots or Condominiums, the following provisions are added hereto (and to the extent these added provisions conflict with any othel provisions of the Governing Documents, these added provisions control). Additional provisions concerning Condominiums may be included in a Project Declaration. 11.2..1 Notices. Each Mortgagee, insurer and guarantor of a Mortgage encumbering one (1) or more Lots or Condominiums, upon filing a written request for notification with the Board, is entitled to written notification from the Master Association of. (a) any condemnation or casualty loss which affects either a material portion of the Properties, the Lot(s) or Condominiums(s) securing the respective' first Mortgage; (b) any delinquency of sixty (60) days or mote in the performance of any obligation under the Governing Documents, including the payment of Assessments or charges owed by the Owner(s) of the Lot(s) or Condominiums(s) securing the Mottgage, which notice each Owner hereby consents to and authorizes; and (c) a lapse, cancellation, or material modification of any policy of instuance or fidelity bond kept by the Master Association. 1112 Right of First Refusal. Each Owner who obtains title to a Lot or Condominium (including a first Mottgagce.who obtains title to a Lot or Condominium pursuant to '(a) the temodies provided in such Mortgage, (b) foreclosure of the Mortgage, or (c) deed or r assignment in licu of foreclosure), is exemptfrom any "tight of fastrefirsal" created or purported to:be created',by the Goveming Documents. -71- 3607,290721CCa51538351,12 UIO/06 11.2.3 Unpaid Assessments. If the fast Mortgagee of's Lot or Condominium obtains fee title to the Lot or Condominium either,' by. foreclosure or by any other remedy provided under the Mortgage, then the Mortgagee shall`take title to the Lot or Condominium fiee and clear of any claims for unpaid Assesslneuts;;or;;charges against the Lot or Condominium to the extent the Assessments or charges accrued before the date on which the Mortgagee acquired title to the Lot or Condominium. 112.4 Master Association Records. All Mortgagees, insurers and guarantors of first Mortgages, on written request to the Master Association, shall have the tight to: (a) examine current copies of the Master Association's books, records and financial statements and the Governing Documents during normal business hours; (b) receive written notice of all meetings of Owners; and (c) designate in writing a representative who shall be authorized to -attend all meetings of'Owners. 112:5 Payment of Taus. First Mortgagees may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge against any Master Association Property and may pay any overdue premiums on hazard insurance policies, or secure new hazard insurance coverage on the lapse of a policy, for Master Association Property, and the Master Association shall immediately reimburse first Mortgagees who made such payments, 11 I' Escrow in such Phase. All 'untended Improvements in an substantially consistent with the Improvements in Phase construction. The requirements of this Section are for the by Fannie Mae.. riled Improvements _is, any Phase ompletion of such Improvements the DRE'before the first Close of. 'hase'other than Phase I shall be in stiu=64 type and quality of refit of and may be enforced only 11-2.7 Contracts. The Board may enter into such contracts or agreements on behalf of the Master Association as are required in order to satisfy the guidelines of the VA, FHA, Freddie Mac, Ginnie Mae, Fannie Mae or any similar entity, so ,as to allow for tie purchase, insurance or guaranty, as the case may be, by such entities of first Mortgages encumbering Lots, improved with Residences, or Condominiums_ Each Owner hereby agrees that it will benefit the Master Association and the Owners, as a class of potential Mortgage bonowers and potential sellers of their Lots or Condominiums, if' such agencies approve the Properties as a qualifying subdivision under their respective policies, rules and regulations. Each Owner hereby authorizes his Mortgagees to ftnnish,information to the Board concerning the status of any Mortgage encumbering a Lot or Condominium -72- 3607-2907MCRM538351 12 1/10M ARTICLE XII ENFORCEMENT AND DISPUTE RESOLUTION 12.1 ENFORCEMENT OF RESTRICTIONS. All violations of the Governing Documents, other than those described in Sections 12.2 through 12.4 or regulated by Civil Code Section 1375, shall be resolved as follows: 12.1.1 Right to Enforce. The Board, the Master Association, a Project Association, the Declatant and any Owner may enforce the Governing Documents as described in this Article, subject to Section 1354 of the California Civil Code. Each Owner has a right of action against the Master Association for the Master Association's failure to comply with the Governing Documents. Each remedy provided for in this Master Declaration is cumulative and not exclusive or exhaustive. 12,12 Project Declaration Enforcement The Master Association, acting through its Board of Directors, may also commence and maintain actions and proceedings to restrain and enjoin any breach or threatened breach of the provisions of any Project Declaration and to enforce, by mandatory injunctions or otherwise, all of the provisions of any Project Declaration. If such an action or proceeding is brought by the Master Association, the prevailing party shall be entitled to recover costs and reasonable attorneys' fees in accordance with this Master Declaration. 12.1.3 Violations Identified by the Master Association. If the Board or the Design Review Committee determines that there is a violation of the Governing Documents, other than nonpayment of any Assessment or the Design Review Committee determines that an Improvement which is the maintenance responsibility of an Owner or Project Association is in need of installation, maintenance, repair, testotation or painting, then the Board shall give written notice to the responsible Owner or the Project Association identifying (a) the condition or violation complained of, and (b) the length of time the Owner or the Project Association has to remedy the violation including, if appropriate, the length of time the Owner or the Project Association has to submit plans to the Design Review Committee and the length of time the Owner or the Project Association has to complete the work proposed in the plans submitted to the Design Review Committee... If an Owner does not perform corrective action within the allotted time, the Board, after Notice and hearing, may remedy such condition or violation complained of, and the cost thereof shall be charged to the Owner or the Project Association as a Special Assessment- If the violation involves nonpayment of any Assessment, then the Board may collect such delinquent Assessment pursuant to the procedures established in Section 12.2. 12.14 Violations Identified by an Owner or Project Association..If:an Owner or Project Association alleges that another Person is violating the Governing Documents (other than nonpayment of any Assessment), the complaining Owner or Project Association must first submit the matter to the Board 6'Notice and Hearing before. the complaining Owner of Project Association may resort to alternative dispute resolution, as requited by Section..,1369 510, et seq. of the California Civil Code, or, litigation for: relief:. 12.1.5 Legal Proceedings,. Failure to comply with any of the terms of the Governing Documents by any Person is grounds for relief' which may include an action to 43- 3607-29072CCRS1538351 12 I/10/06 recover damages, injunctive relief, foreclosure of any lien, or any combination thereof; however, the procedures established in Sections 1363.810 and 1369.510, et req of the California Civil Code and in Sections 12.1.2 and 12.14 must first be followed, ifthey apply. 12..1.6 Additional Remedies. After Notice and liming, the Board may impose any of the remedies provided for in the Bylaws.. the Bomd. may adopt a schedule of .reasonable fines or penalties which; in its reasonable discretion, the Board may assess against';a Person for the failure of such Person to comply with"the :Governing Documents Such fines or penalties may only be assessed pursuant to Civil Code Section 1363: After Notice and Heating, the Board may direct the officers of the Master Association to Record a notice of noncompliance (if allowed by law) against a Lot or Condominium owned by any Owner who has violated any provision of this Master Declatatiort The ,notice, shall include a; legal description of the Lot or. Condominium and shall specify the provision of this Master Decimation that was violated, the violation committed, and the steps"` tequired to 'ternedy the noncompliance' `Once the noncompliance is remedied or the noncomplying Owner has taken such other steps as reasonably required by the Board, the Board shall direct the officers of the Master Association to Record a notice that the noncompliance.has been remedied, 12.1.7 No Waiver. Failure to enforce any provision of this Master Decimation does not waive the tight to enforce that provision, or any other provision of this Master'Declaration. 12.1.8 Limit on Expenditures. the Master Association may not incur litigation expenses, including attorneys' fees, or borrow money to fund litigation, where the Master Association initiates legal proceedings or is joined as a plaintiffin legal proceedings, unless the Master Association first obtains the consent of the Owners (excluding the voting power of any Owner who would be a defendant in such proceedings) and, if applicable, complies with the requirements of`Sections 1363-810 and 1369.310, et seq of the California Civil Code. Such approval is not necessary if the legal proceedings are initiated (a) to enforce the use restrictions contained in Article II, (b) to enforce the architectural and landscaping control provisions contained in Article V, (c) to collect any unpaid Assessments levied pursuant to the Governing Documents, (d) for a claun, other than a Defect Claim (defined in Section 4:5.2) the total value of which is less than Five Hundred Ihousand Dollars (S500,000), or (e) as a cross - complaint in litigation to which the Master Association is already a party.. If the Master Association decides to use or transfer Reserve Funds or borrow funds to pay for any litigation, the Master Association must notify the Owners of the decision by mail.. Such notice shall provide an explanation of why the litigation is being initiated or defended, why Operating Funds cannot be used, how and when the Reserve Funds will be replaced or the loan will be repaid, and a proposed budget for the litigation. The notice must state that the Owners have a tight to review an accounting for the litigation which will be available at the Master Association's office. the accounting shall be updated monthly. If the Master Association action to incur litigation expenses or' borrow money to fund litigation concerns a Defect Claim, then the voting requirements of both Sections 4.5.2 and 12.1.8 must be met. .74- 3607•290721CCRS1538351.12 1110/06 12.2 DELINQUENT ASSESSMENTS.. 12.2.1 Delinquency. Assessments are delinquent if not paid within fifteen (IS) days after the due date established by the Master Association. Assessments not paid within thirty (30) days after the due date, plus all reasonable costs of collection ('including attorneys' fees) and late charges bear interest at the maximum Late permitted by law commencing thirty (30) days after the due date until paid.. the Master Association may also require the delinquent Owner to pay a late charge in accordance with California Civil Code Section 1366(dx2). The Master Association need not accept any tender of a partial payment of an Assessment and all costs and attorneys' fees attributable thereto. Acceptance of any such tender does not waive the Master Association's tight to demand and receive full payment. 12.22 Creation and Release of Lien. (a) Priority eflien. All liens levied in accordance with this Master Declaration shall be prior and superior to (i) any declaration of homestead Recorded after the Recordation of this Master Declaration, and (ii) all other liens, except (1) all taxes, bonds, Assessments and other levies which, by law, would be superior thereto, and (2) the lien or charge of'any first Mortgage of' Record (meaning any Recorded Mortgage with fast priority or seniority over other Mortgages) made in good faith and for value and Recorded before the date on which the "Notice of Delinquent Assessment" (described in this Section) against the assessed Lot or. Condominium was Recorded. (b) Notice Before Creating lien. Before the Master Association may place a lien on a Owner's Lot or Condominium to collect a past due Assessment; the Master Association shall send written notice ("Notice of Intent to Lien"), at least thirty (30) days prior to recording of such lien, to the Owner by "certified mail which contains the following information: (i) the Master Association's fee and penalty procedure, (ii) au itemized statement of the charges owed by the Owner, including the principal owed, any late charges, any interest the; method of calculation, and any attorneys' fees, (iii) the collection practices used by $ie'Master Association, (iv) a statement that the Master Association may recover reasonable costs of collecting past due Assessments, (v) a statement that the Owner has the right to inspect the Master Association's records, pursuant to California Corporations Code Section 83.33, (vi) the following statement in 14-point boldface type or all capital letters: "IMPORIANT NOTICE: IF YOUR SEPARATE INIERESI IS PLACED IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR ASSESSMENIS, IT MAY BE SOLD WITHOUT COURI ACTION," (vii) a statement that the Owner shall not be liable to pay the charges, interest and costs of collection if it is detetmined the Assessment was paid on time to the Master Association, (viii) a statement that the Owner has the right to request a meeting with the Board, as provided by California Civil Code Section 1367..1(c) and Section 1222(g) below, and (ix) the right to dispute the assessment debt by submitting a written request for.: dispute.resolution to the Master Association pursuant to the Master Association's "nreet .and confer" program required in. California Civil Code Section 1363.810, and following, and (x) the right to request altccnative dispute resolution with a neutral third party pursuant to California Civil Code Section-1369-510 before the Master Association may initiate foreclosure against the Owner's sepatate interest, except that binding arbitration shall not be available if the Master Association intends to initiate a judicial foreclosure. -75- 3607-2907MCM538351 12 MOW (c) Dispute Resolution: Before Recording Lien. Pt for to recording a lien for delinquent Assessments, the Master Association shall offer the Owner and, if so requested by the Owner, participate in dispute resolution pursuant to the Master Association's "meet and 'coder" program required in California Civil Code Section 1368 810. (d) Dispute Resolution Before Foreclosure. Pilot to initiating a foreclosure for delinquent Assessments, the Master Association shall offer the Owner and, if so requested by_ the Owner, shall participate in dispute resolution pursuant to the Master Association's "meet and confer" program requited in California Civil Code Section 136:3.910 or alternative dispute resolution with a neutral third party pursuant to Section 1369-510. the decision to pursue resolution or a particular type of alternative dispute resolution shall be the choice of the Owner, except that binding arbitration shall not be available if the Master Association intends to initiate a judicial foreclosure. (e) Board,Deeislon to Foreclose. the decision to record a lien for delinquent Assessments shall be made only by the Board and may not be delegated to an agent of the Master Association- The Board shall approve the decision by a majority vote of the Board members in an open meeting. The Board shall record the vote in the minutes of that meeting- (f) Dlspute:6yOwner. An Owner may dispute the Notice of Intent to Lien by submitting to the Board a written explanation of the reasons for the Owner's dispute. The Board shall respond in writing to Owner- within fifteen (15) days of the date of the postmark of the explanation, if the explanation is mailed within fifteen (15) days of the postmark of' the Notice of Intent to Lien. (g) Owner 's,Rigbt to Request Meeting. An Owner may submit a. written request to meat with the Board, to discuss: a payment plan for the 'debt noticed in Section 12.22(b) above. ,She Master Association shall provide the Owner with the standards for ,payment plans, if any exist. The Board shall meet with the Owner in executive session within forty-five (45) days of the postmark of -the request, if the request is mailed within fifteen (15) days of the date of the postmark of the Notice of Intent to Lien, unless there is no regularly scheduled Board meeting within that period, in which case the Board may designate a committee of one or more members to meet with the Owner.. (h) Notice of Delinquent Assessment The,lien becomes effective on Recordation by the Board or its authorized agent of s Notice of Delinquent Assessment ("Notice of Delinquent Amasmatn securing the payment of any Assessment or installment thereof levied by the Master Association against any Lot or Condominium Owner, as provided in Section 1367 or 1.367.1 of the California Civil Code. the Notice of Delinquent Assessment must identify (i) the amount of the Assessment and other authorized charges and interest, including the cost of preparing and Recording the Notice of Delinquent Assessment, (ii) the amount of collection costs incurred, including reasonable attorneys' fees; (iii) a sufficient description of the Lot or Condominium Owner that has been assessed, (iv) the Master Association's name and address, (v) the as= of the Owner of the Lot or Condominium that has been assessed, and (vi) if the lien is to be enforced by nonjudicial foreclosure, the name and address of the trustee authorized' by the Association to enforce the lien by sale The Notice of Delinquent_ ._ ;: .. Assessment taus[ be.signed by : an authorized,Master: Association ofiicefor agent and must bes .76- 3601-M2CCRa\53935r 12 1/1ON6 mailed in the manner required by Section 2924b of the California Civil Code to the Owner of record'of the Lot of Condominium no later than ten (10) calendar days after Recordation. the lien relates only to the individual Lot or Condominium against which the Assessment was levied and not to the Properties as a whole. (i) Service o/Notice of Default In addition to the requirements of California Civil Code Section 2924, a notice of default shall be served by the Master Association on the Owner's legal representative in accordance with the manner of service of summons in California Code of Civil Procedure Section 415.10 and following. (j) Secondary AQdre53 of Owner., Upon .receipt of a written request by an Owner identifying a secondary address for putposes'of collection notices, the. Master Association shall send additional copies of;any notices requited bythis Section to the secondary address provided. The Master Association shall notify Owners of theh righI to submit secondary addresses to the Master Association, at the time the Master Association issues the profortna operating budget pursuant to California Civil Code Section 1,365, The Owner's request shall be in writing and shall be mailed to the Master Association in a mannet that shall indicate the Master Association has received it. The Owner may identify or change a secondary address at any,time, provided that, if wsecondary address is identified or changed during the collection process, the Master Association WWI only be required to send notices to the indicated secondary address from the point the Master Association receives the request. (k) Eacc"lons. Assessments described in Section 1367(e) of the California Civil Code andSection 2792.26(c) of the California Code of Regulations may not become a lien against an Owner's Lot or Condominium enforceable by the sale of the Lot or Condominium under California Civil Code Sections 2924, 2924b and 2924c: ,(I) Release of Lien. Within twenty-one (21) days of payment of the full amount claimed in the Notice of Delinquent Assessment, or other satisfaction thereof, the Board"shall cause to be Recorded a Notice of Satisfaction and Release of Lien ("Notice of 8elease'� stafing the satisfaction and release of the amount claimed. The Master Association shall provide the Owner with a copy of the Notice ofRelease or any other notice tbat the full, amount claimed In ,the Notice of Delinquent Assessment has been satisfied. The Boatel may require the Owner to pays reasonable chazge for preparing and Recording the Notice of Release Any purchaser or encutnbtancer who has acted in good ifaith and extended value may rely on the Notice of Release as conclusive evidence of the full satisfaction of the sums identified as owed in the Notice of Delinquent Assessment. 122.3 Enforcement of Liens. The Board shall enforce the collection of amounts due under this Master Declaration by one (1) or more of the alternative means of relief afforded by this Master Declaration, subject to the restrictions in California Civil Code Section1367-4, as amended. (a) the lien on a Lot or Condominium may be enforced by foreclosure and sale of the Lot or Condominium after failure of the Owner to pay any Assessment, or installment thereof, as provided in this Master Declaration. 47- 3e07-29072rccas1539351 12 urom (b) The decision to initiate foreclosure of a lien for delinquent Assessments that has been validly recorded shall be made only by the Board of Directors of the Master Association and may not be delegated to an agent of the Master Association the Board shall approve the decision by a majority vote of the Board members in an executive session. the Board shall record the vote in the minutes of the next meeting of the Board open to all members. The Board shall maintain the confidentiality of the Owner or Owners of the separate interest by identifying the matter in the minutes by the Lot or Condominium number of the property, rather than the name of the Owner or Owners. A Board vote to approve foreclosure of a lien shall take place at least thirty (30) days prior to any public sale, (c) The Board shall provide notice by personal seivice.to.an Owner of a Lot or Condominium who occupies the Lot or Condominium or to the Owner's legal representative, if the Board votes to foreclose upon the Lot or Condominium, The Board shall provide written notice to an Owner of a Lot or Condominium who does not occupy the Lot or Condominium by first-class mail, postage prepaid, at the most current address shown on the books of the Master Association. In the absence of written notification by the Owner to the Master Association, the address of the Owner's Lot or Condominium may be treated as the Owner's mailing address. (d) The sale shall be conducted in accordance with the provisions of the California Civil Code applicable to the exercise of powers of sale in Mortgages, or in any manner petmitted by law.. The Master Association (or any Owner if the Master Association refuses to act) may sue to foreclose the lien if (i) at least thirty (30) days have elapsed since the date on which the Notice of Delinquent Assessment was Recorded, and (ii) at least ten (10) days have elapsed since a copy of the Notice of Delinquent Assessment was mailed to the Owner affected thereby. The Master Association may bid on the Lot or Condominium at foreclosure sale, and acquire and hold, lease, mortgage and convey the same.. On completion of the foreclosure sale, the Master Association or the purchaser- at the sale may file suit to secure occupancy of the defaulting Owner's Lot or Condominium, and the defaulting Owner shall be required to pay the reasonable rental value for the Lot or Condominium during any period of continued occupancy by the defaulting Owner or any persons claiming under the defaulting Owner, A nonjudicial foreclosure to collect delinquent assessments shall be subject to the tight of redemption within 90 days alter the sale, as provided in California Civil Code Section 1967.4, as amended. (e) A suit to recover a money judgment for unpaid Assessments may be brought without foreclosing or waiving any lien securing the same, subject to the provisions of California Civil Code Section 1367.1(b), but this provision or any suit to recover a ,money judgment does not affirm the adequacy of money damages. Any recovery resulting from a suit at law or in equity initiated pursuant to this Section may include reasonable attorneys' fees as fixed by the court.. 12.24 Priority of Assessment Lien. Mortgages R=rded before a Notice of Delinquent Assessment have lien priority over the Notice of Delinquent Assessment Sale or transfer of any Lot or Condominium does not affect the Assessment lien; except that the sale or transfer of any Lot or Condominium pursuant to judicial or nonjudicial foreclosure of a first Mortgage extinguishes the lien of such Assessments as to payments which became due before _78_ 3607.2907ZCM 539351 A2 1710/06 such sale or transfer. No sale or transfer relieves such Lot or Condominium from liens for any Assessments thereafter becoming due. No Person who obtains title to a Lot or Condominium pursuant to a judicial or nonjudicial foreclosure of the first Mortgage is liable for the share of' the Common Expenses or Assessments chargeable to such Lot or Condominium which became due before the acquisition of title to the Lot or Condominium by such Person. Such unpaid share of Common Expenses or Assessments is a Common Expense collectible from all Owners including such Person. The Master Association may take such action as is necessary to make any Assessment lien subordinate to the interests of the Department of Veterans Affairs of the State of California under its Cal -Vet loan contracts as if the Cal -Vet loan contracts were first Mortgages of record. 12.2.5 Alternative Dispute Resolution. An Owner may dispute the Assessments imposed by the Master Association as provided in this Master Declaration and in California Civil Code Sections 1367.1 and 1367.4, as amended. If it is determined through dispute resolution pursuant to the Master Association's "meet andconfer" program required in this Master Declaration or alternative dispute resolution with a neutral third party pursuant to California Civil Code Section 1369 510, that the: Master Association has recorded.a lien.for. a delinquent assessment in error, the Master Association shall promptly reverse all late charges, fees, interest, attorney's fees, costs of collection, costs imposed for the notice prescribed in subdivision (a) of Section 1367..1, and costs of recordation and release of the lien authorized under subdivision (b) of Section 1367A. and pay all costs related to the dispute resolution or alternative dispute resolution. The right of any Owner to use alternative dispute: resolution under this Section may not be exercised more than two (2) times in any singlecalendar year, and not more than three (3) times within any five (5) calendar years unless the Owner and the Master Association mutually agree to use alternative dispute resolution when this limit is exceeded An Owner may request and be awarded through alternative dispute resolution reasonable interest to be paid by the Master Association in the total amount paid under items (a) through (d) above, if it is determined that the Assessment levied by the Master Association was not correctly levied. 12.2.6 Receivers. In addition to the foreclosure and other remedies granted to the Master Association in this Master Declaration, each Owner, by acceptance of a deed to such Owner's Lot or Condominium, conveys to the Master Association all of such Owner's tight, title and interest in all tents, issues and profits derived from and appurtenant .to such Lot or Condominium, subject to the right of the Master. Association to collect and apply such rents, issues and profits to any delinquent Assessments owed by such Ownet; reserving to the Owner the right, before any default by the Owner in the payment of Assessments, to collect and retain such rents, issues and profits as they may become due and payable. On any such default, the Master Association may, on the expiration of`thirty (30) days following delivery to the Owner of the "Notice of'Delinquent Assessment" described in this Master Declaration, either in person, by agent or by receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness secured by the lien described in this Master Declaration, (a) enter in or on and take possession of the Lot or Condominium or. any part thereof, (b) in the Master Association's name sue for or otherwise collect such rents, issues and profits, including those past due and unpaid, and (c) apply the same, less allowable expenses of operation, to any delinquencies of the Owner, and in such order as the Master Association may determine. Ile entering upon and taking possession of the Lot or Condominium, the collection of rents, issues -79- 3601-290WMSr 53W1 l2 In0/06 and profits and the application thereof; shall not cute or waive any default or notice of default under this Master Declaration or invalidate any act done pursuant to such notice. 12.2.7 Compliance with flaw Ihis Section is intended to comply with applicable law. All amendments, modifications, restatements and interpretations of the law applicable to Assessment collection shall be, interpreted to amend, modify, restate or interpret this Section 122. 12.3 ENFORCEMENT OF BONDED OBLIGATIONS If (a) the Master Property Improvements in any Phase are not completed before issuance of a Final Subdivision Public Report for such Phase by the DRE, and (b) the Master Association is obligee under a bond or other arrangement ("Bond'j required by the DRE to secure performance of Declaratrt's commitment to complete such. Improvements, then the following provisions of this Section will be applicable: 123.1 Consideration by the Board. The Board shall consider and vote on the question of action by the Master Association to enforce the obligations under the Bond with inspect to any such Improvement for which a Notice of Completion has not been filed within sixty (60) days after the completion date specified for that Improvement in the Planned Construction Statement appended to the Bond. If the Master Association has given an extension in writing for the completion of any Master Property Improvement, then the Board shall be directed to consider and vote on the aforesaid question if a Notice of Completion has not been filed within thirty (30) days after the expiration of the extension. 123.2 Consideration by the Owners. A special meeting of Owners for the purpose of voting to override a decision by the Board not to initiate action to enforce the obligations under the Bonder on the Board's failure to consider and vote on the question shall be held no fewer than thirty-five (35) nor more than forty-five (45) days after the Board receives a petition for such a meeting signed by Owners representing five percent (5%) of the Master Association's total voting power . A vote of a majority of the Master Association's voting power (excluding Declarant) to take action to enforce the obligations under the Bond shall be deemed to be the decision of the Master Association, and the Board shall thereafter implement such decision by initiating and pursuing appropriate action in the Master Association's name.. 12A DISPUTES WITH DECLARANT PARTIES.. Any dispute between the Master Association, Project Association or any Owners, on the one hand, and the Declarant, or any director, officer, partner, shareholder, member, employee, representative, contractor, subcontractor, design professional or agent of the Declatant (each, a Declarant Patty, " and' collectively the 'Declarant Paitles'), on the other hand, which dispute: (a) Arises under this Master Declaration or otherwise relates to the Properties (including disputes regarding latent or patent construction defects); and (b) Involves neither Master Property completion bonds, nor the collection of delinquent Assessments from Declining; and (c) Concerns an amount in controversy that is greater than Five Thousand Dollars ($5,000), -go- 3607-29072VX" 538351:12 r/r0/06 shall be a "Dispute" for purposes of this Section 12.4.. All Disputes shall be resolved in accordance with the following alternative dispute resolution procedures set forth in this Section 12 4. In addition, Owners, Project Associations and the Master Association are advised that Sections 124.1, 12*2 and 12.4.3 are Declarant's alternative contractual non -adversarial procedures for the resolution of Disputes concerning matters governed by the Right to Repair Law_ These procedures are different from and replace the "Prelitigation Procedure" described in Chapter 4 of the Right to Repair Law: 124_1 Notice, Any Person with a Dispute shall give written notice of the Dispute 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 patty to whom the Dispute is directed ("Respondent') describing the nature of the Dispute and any proposed remedy (the `Dispute Notice') 12.42 Right to Inspect and Correct. Commencing on the date the Dispute Notice is delivered to the Respondent and continuing until the Dispute is tesolved, the Respondent and its representatives have the tight to (a) meet with the patty alleging the Dispute at a reasonable time and place to discuss the Dispute, (b) enter the Properties to inspect any areas that ate subject to the Dispute, and (c) conduct inspections and testing (including desuuctivc or invasive testing) in a manner deemed appropriate by the Respondent, If Respondent elects to take any corrective action, Respondent and its representatives 'shall ,be provided full access to the Properties to take and complete the corrective action. Respondent is not obligated to take any corrective action. Respondent, with the consent of Declarant, has the right to select the corrective action Respondent believes is appropriate. The right to inspect and correct granted in this Section is in addition to the rights granted in California Civil Code Section 1375 (the "Calderon Act'). The procedures established in the Calderon Act may be implemented before, during or after the procedure in this Section is implemented. 12A.3 Mediation If the'Dispute.is not resolved within ninety (90) days after the Respondent receives the Dispute Notice, any party. may submit the Disputedo mediation by delivering a request for mediation ("Medlation Notice")' in the same manner as allowed for - delivery of the Dispute Notice_ The Dispute shall be mediated pursuant to (a) the American Arbittation Master Association ( AAA") mediation procedures in existence when the Dispute Notice is delivered, as modified by this Section, or (b)the mediation procedures of any successor to the AAA in existence when the Dispute Notice is delivered, as modified by this Section, or (c) mediation procedures approved by the parties of any entity offering mediation services that are acceptable to the parties to the Dispute (each, a Party" and collectively, the 'Parties'). Except as provided in Section 12A.5, no Person shall commence litigation regarding a Dispute without complying with this Section 12.4.3, (a) Seledion of Mediator. The mediator shall be selected within sixty (60) days fiom delivery of the Mediation Notice. the mediator shall be selected by mutual agreement of the Patties. If the Patties cannot agree on a mediator, the mediator shall be selected by the entity providing the mediation service. No Person shall serve as a mediator in any Dispute in which the Person has any financial or personal interest in the result of, the mediation, except by the written consent of all Parties. Before accepting any appointment, the prospective mediator shall disclose any circumstances likely to create a presumption of bias or to prevent a prompt commencement of the mediation process. 81- 3607.290721CCRS153835112 1/10/06 (b) Position Lever; Pre -Mediation Conference. No later than sixty (60) days after selection of the mediator, each patty to the Dispute shall submit a letter ( "Position Statement') containing (i) a description of the Patty's position concerning the issues that need to be resolved, (ii) a detailed description of the defects allegedly at issue, and (iii) a suggested plan of repair, remediation or correction. The mediator may schedule a pre -mediation conference. All Patties shall attend unless otherwise mutually agreed. The mediation shall be commenced within twenty (20) days after submittal of all Position Statements and shall be concluded within fifteen (15) days after the mediation began unless either (A) the mediator extends the mediation period, or (B) the Parties mutually agree to extend the mediation period. the mediation shall be held in the County or another place mutually acceptable to the patties. (c) Conduct of Mediation. The mediator has discretion to conduct the mediation in the manner in which the mediator believes is most appropriate to achieve the goal of'settling the Dispute.. the mediator is authorized to conduct,joint and separate meetings with the Patties and to make otal and written recommendations for settlement. The mediator may also obtain expert advice concerning technical aspects of the Dispute, provided the Parties assume the expenses of obtaining such advice. The mediator shall not have the authority to impose a settlement on the Parties. (d) Application of Evidence Code.. The provisions of California Evidence Code Sections 1115 through 1128 shall be applicable to the mediation process. Use and disclosure of statements, evidence and communications offered or made in the course of the mediation shall be governed by these sections, including the sections which preclude use of material in future proceedings and the sections which provide for confidentiality of material. (e) Parties Perntitted at Mediation. Persons other than the Patties, their liability insurers, Declarant, attorneys for the Patties and the mediator may attend mediation sessions only with the permission of the Parties and the consent of the mediator... Declarant has the tight to attend the mediation session even if Declarant is not one of the Patties (t) Record. Ihem shall be no stenographic, video or audio record of the mediation process. (g) Expenses. Each Party shall bear its own attorneys' fees and costs incurred in connection with the mediation. All other expenses of the mediation including the fees charged by the mediator and. the cost of any proof or expert advice requested by the mediator shall be bome equally by each of Declarant and the Declarant Parties to whom the Dispute is directed, unless the Parties agree otherwise. This provision does not modify any provision of a contract between Declatatlt and any Declatant Patty requiring indemnification or establishing a different allocation of costs between the Declatant and the Declarant Party.. 12.4.4 Judicial Reference. If a Dispute remains utuesolved after the mediation required by Section 12.4.3 is completed, any of the Parties may file a lawsuit, provided that the Master Association must obtain the vote or written consent of Owners other' than Declarant who represent not less than sixty-seven percent (6r/6) of the Master Association's voting power (excluding the voting power of Declarant) pilot to filing a lawsuit in a Dispute with Declarant or a Declatant Party.. All lawsuits regarding Disputes must be resolved -82- 3607d9077CCRS153835112 1110006 by general judicial reference pursuant to California Code of Civil Procedure Sections 638 and 641 through 645.1, as modified by this Section 12 A 4. The Parties shall cooperate in good faith to ensure that all necessary and appropriate parties are included in the judicial reference proceeding. No Party shall be required to participate in the judicial reference proceeding if all Parties against whom such Party would have necessary or permissive cross -claims or counterclaims will not or cannot be joined in the judicial reference proceeding. The general referee shall have the authority to try all issues of fact and law and to report a statement of decision to the court. The referee shall be the only trier of fact and law in the reference proceeding, and shall have no authority to further- refer any issues of fact or law to any other Person unless all patties to the judicial reference proceeding consent, or the referee determines that a conflict of interest or similar situation has atisen which would make it inappropt late for the referee to act as the trier of fact or law concerning an issue or matter. In the second alternative, an alternative judicial referee shall be selected in accordance with Section t2.4 4(b) solely for resolving or tendering a decision concerning the issue or matter involved in the conflict (a) Place. the proceedings shall be heard in the County. (b) Referee. The referee shall be a retired judge who served on the Superior Court of the State of California in the County with substantial experience in the type of matter in dispute and without any relationship to the Patties or interest in the Properties, unless the Patties agree otherwise. the parties to the judicial reference proceeding shall meet to select the referee no later than thirty (30) days after service of the initial complaint on all defendants named in the complaint. Any dispute regarding the selection of the referee shall be resolved by the court in which the complaint is filed (c) Commencement and Timing of'Proceeding. the teferee shall commence the Proceeding at the earliest convenient date and shall conduct the proceeding without undue delay. (d) Pre -hearing Conferences. the referee may require pre -hearing conferences. (e) Discovery- The parties to the ,judicial reference proceeding shall be entitled only to limited discovery, consisting of the exchange of the following: (1) witness lists, (ii) expert witness designations, (iii) expert witness reports, (iv) exhibits, (v) reports of testing or inspections, and (vi) briefs. Any other discovery authorized in the California Code of Civil Procedure shall be permitted by the referee upon a showing of good cause or based on the consent of all parties to the judicial reference proceeding.. (f) Motions, the referee shall have the power to hear and dispose of motions, including motions relating to discovery, provisional remedies, demurrers, motions to dismiss, motions for judgment on the pleadings and summary judgment and/or adjudication motions, in the same manner as a trial court judge. The referee shall also have the power to adjudicate summarily issues of fact or law including the availability of remedies whether or not the issue adjudicated could dispose of -an entire cause of action or defense.. -83- 3607-29077CCasr539351..12 Itlam (g) Record. A stenographic record of the hearing shall be made which shall remain confidential except as may be necessary for post -hearing motions and any appeals- (h) Statement of Decision. The referee's statement of decision shall contain an explanation of the factual and legal basis for the decision pursuant to California Code of Civil Procedure Section 632. the decision of the referee shall stand as the decision of the court, and upon fining of the statement of decision with the cleric of the court, judgment may be entered thereon in the same manner as if the Dispute had been tried by the court. (i) Rensedles. The referee may grant all legal and equitable remedies and award damages in the judicial reference proceeding. (j) Post -hearing Motions. the referee may rule on all post - hearing motions in the same manner as a trial judge. (k) Appeals. The decision of the referee shall be subject to appeal in the same manner as if the Dispute had been tried by the court. 0) Expenses.. Each Party shall bear its own attotneys' fees and costs incurred in connection with the judicial reference proceeding. All other fees and costs incurred in connection with the judicial reference proceeding, including the cost of the stenographic record, shall be advanced equally by each of Declarant and the Declarant Patties to whom the Dispute is directed. However, the referee shall have the power to reallocate such fees and costs among the Parties in the referee's final ruling. Ihis pmvision does not modify any provision of'a contract between Declarant and any Declatant Parry requiring indemnification or establishing a different allocation of costs between the Declarant and the Declarant Party. 12.4.5 Statutes of Limitation:. Nothing in this Section 12.4 shall be considered to toll, stay, reduce or extend any applicable statute of limitations; provided, however, that Declarant, the Declarant Patties, the Master Association and any Ownet may commence a legal action which in the good faith determination of that Person is necessary to preserve that Person's tights under any applicable statute of limitations so tong as no further steps in processing the action are taken except those authorized in this Section 12.4. 12A.6 Agreement to Dispute Resolution; Waivers of Jury. Trial DECLARANT, IHE MASTER ASSOCIAIION AND EACH OWNER AGREE TO USE IHE PROCEDURES ESIABLISHED IN THIS SECIION 12A TO RESOLVE ALL DISPUTES AND WAIVE IHEIR RIGHTS IO RESOLVE DISPUTES IN ANY OIHER MANNER, DECLARANT, THE MASTER ASSOCIATION AND EACH OIHER ACKNOWLEDGE THAT BY AGREEING TO RESOLVE ALL DISPUTES AS PROVIDED IN IHIS SECTION 12.4, THEY ARE GIVING UP THEIR RIGHT TO HAVE DISPUTES IRIED BEFORE A JURY. IHIS SECTION 12A MAY NOT BE AMENDED WITHOUT DECLARANTS PRIOR WRITTEN CONSENI. 12-4.7 California Civil Code Section 1354. Section 12.4 governs only the resolution of Disputes with Declarant Pasties and shall not affect the subject matter of such Disputes: Unless the subject natter of a Dispute expressly involves enforcement of the -84- 3607-290721CCRSr539751 12 t/r0N6 Governing Documents, such Dispute shall not be governed by the provisions of California Civil Code Section 1354, or any successor statute. Enforcement of Section 12.4 shall not entitle the Prevailing party in any Dispute with a Declarant Party to recover attorney's fees or costs ARTICLE XIII DURATION AND AMENDMENT 13.1 DURATION. Ihis Master Declaration shall continue in full force unless a Master Declaration of termination satisfying the requirements of an amendment to this Master Declaration established in Section 13.2 is Recorded. 13.2 TERMINATION AND AMENDMENT, 13.2.E Amendment Approval. Notice of the subject matter of a proposed amendment to this Master Declaration in reasonably detailed form must be included in the notice of any Master Association meeting or election at which a proposed amendment is to be considered. Io be effective, a proposed amendment (other than an Amendment described in Section 15.7) must be adopted by the vote, in person or by proxy, or written consent of Ownets representing not less than (a) sixty-seven percent (671/6) of the voting power of each Class of the Master Association and (b) sixty-seven percent (671/o) of the Master Association's voting power represented by Owners other than Declarant, provided that the specified percentage of the Master Association's voting power necessary to amend a speck provision of this Master Declaration may not be less than the percentage of affirmative votes prescribed for action to be taken under the provision that is the subject of the proposed amendment. 132-2 Mortgagee Consent, In addition to the consents required by Section 132.1, the Mortgagees of fifty-one percent (51%) of the first Mortgages on all the Lots or Condominiums in the Properties who have requested the Master Association notify them of proposed action requiring the consent of a specified percentage of first Mottgagees must approve any amendment to this Master Declaration, any Notice of'Addition and any Supplemental Master Declaration; which is of a material nature, as follows: (a) Any amendment which affects or purports to affect the validity or priority of Mortgages or the rights or protection granted to Mortgagees, insurers or guarantors of fast Mortgages. (b) Any amendment which would require a Mortgagee after it has acquired a Lot or Condominium through foreclosure to pay more than its proportionate share of any unpaid Assessment or Assessments accruing before such foreclosure. (c) Any amendment which would or could result in a Mortgage being canceled by forfeiture, or in a Lot or Condominium not being separately assessed for tax putposes, (d) Any amendment relating to (i) the insurance provisions in Article VW, (u) the application of insurance proceeds in Article IX, or (iii) the disposition of any money received in any taking under condemnation proceedings, -85- 3607-29072%CCM53935L 12 MOM (e) Any amendment which would restrict an Owner's right to sell or transfer his or her Lot or Condominium. (f) Any amendment which would subject any Owner to a right of first refusal or other such restriction, if such Lot or Condominium is proposed to be transferred. 13.2.3 Amendment of Defect Claims Provisions.. Except for any amendment made by Declatant as authorized in Section 15.7, neither this Section 13.2.3 not Sections 1.1.38, 2.1.1, 2.1.5, 3.6, 4.2.7, 4:.4.4, 124.8, 12.4, 3:6, 132.7, 13.2.8 or 15.1 may be amended without the vote or approval by written ballot of at least (a) ninety percent (90/6) of the voting power of the members of the Master Association other than Declarant, and (b) at least ninety percent (901/9) ofthe Mortgagees. 132.4 Termination Approval.- Termination of this Master Declaration requires approval of the Owners as provided in Section 13.2.1. 13.25 Notice to Mortgagees, Each Mortgagee of a fast Mortgage on a Lot or Condominium in the Properties which receives proper written notice of a proposed amendment or termination of this Master Declaration, any Notice of Addition or any Supplemental Master Declaration with a return receipt requested is deemed to have approved the amendment or termination if the Mottgagee fails to submit a response to the notice within thirty (30) days after the Mortgagee receives the notice 13.2.6 Certificate. A copy of each amendment must be certified by at least two (2) Master Association officers. The amendment becomes effective when a Certificate of Amendment is Recorded. The certificate, signed and sworn to by two (2) Master Association officers that the requisite member of Owners and Mottgagees have approved the amendment, when Recorded, is conclusive evidence of that fact. the Master Association shall beep in its files for at least four (4) years the record of all such approvals. The certificate reflecting any termination or amendment which requires the written consent of'say of the Mortgagees of fast Mortgages must include a certification that the requisite approval of such first Mortgagees was obtained: 13.2.7 Unilateral Amendment by Declarnat.. Notwithstanding any other provisions of this Section, at any time prior to the first Close of Escrow in Phase 1, Declatant may unilaterally amend or terminate this Master Declaration by Recording a written instrument which effects the amendment or termination and is signed and acknowledged by Declarant. Notwithstanding any other provisions of this Section, Declarant (for so long as Declarant owns any portion of the Properties or the Annexable Territory) may unilaterally amend this Master Declaration by Recording a written instrument signed by Declarant in order to (i) conform this Master Declaration or the Supplemental Master Declaration to the rules, regulations or requirements of VA, FHA, DRE, Fannie Mae, t.rinnie:Mae or Freddie Mao, (ii) amend Article III, (iii) amend, replace or substitute arty Exhibit for any purpose to the extent that the Exhibit affects portions of the Properties that have not yet been conveyed to the Master Association or for which there has been no Close of Escrow, as applicable, (iv) amend, replace or substitute any Exhibit to correct typographical or engineering errors, (v)include any Exhibit that was inadvertently omitted fiom the Master Declaration or Supplemental Master Declaration at the -86_ 3607-29072CCRM 539351 12 1/10106 time of recording, (vi) comply with any City, County, State or Federal laws or regulations, (vii) conect any typographical errors, (viii) supplement this Master Declaration with provisions which pertain to rights and obligations of Declatant, the Master Association or Owners arising under the Right to Repair Law at Division 2, Part 2, Iitle 7 (commencing with Section 895) of the California Civil Code, and (ix) change any exhibit to this Master Declaration or portion of an exhibit to conform to as -built conditions.. 13.2.8 Amendment by the Board. Notwithstanding any other provisions of this Section, after the Declarant no longer own any portion of the Properties, the Board may amend this Master Declaration by Recording a written instrument signed by two officers of the Master Association certifying that the Board approved the amendment for the purposes described in Sections 13.2.7(i), (iv), (v), (vi), (vii) and (ix) above. So long as Declarant owns any portion of the Properties or the Annexable Ienitory, the Board must obtain Declarant's consent to any amendment the Board approves pursuant to Article XV, or pursuant to this Section. ARTICLE XIV GENERAL PROVISIONS 14.1 MERGERS OR CONSOLIDATIONS. In a merger or consolidation of the Master Association with another Master Association, the Properties, rights and obligations of the Master Association may, by operation of law, be transferred to another surviving or consolidated Master Association or, alternatively, the Properties, tights and obligations of another Master Association may, by operation of law, be added to the Properties, rights and obligations of the Master Association as a surviving corporation pursuant to a merger. The surviving or consolidated Master Association may administer and enforce the covenants, conditions and restrictions established by this Master Declaration governing the Properties, together with the covenants and restrictions established on any other property, as one (1) plan.. 14.2 NO PUBLIC RIGHT OR DEDICATION. Nothing in this Master Declaration is a gift or dedication of all or any part of the Properties to the public, or for any public use. 14.3 NOTICES_ Except as otherwise provided in this Master Declaration, notice to be given to an Owner must be in writing and may be delivered personally to the Owner. Personal delivery of'such notice to one (1) or more co -Owners, or any general partner of a partnership owning a Lot or Condominium, constitutes delivery to all Owners.. Personal delivery of'such notice to any officer or agent for the service of process on a'cotpotation or limited liability company constitutes delivery to the corporation or limited liability company. Such notice may also be delivered by regular United States mail, postage prepaid, addressed to the Owner at the most recent address ftunished by such Owner to the Master°Association or, if no such address has been furnished, to the street address of'such Owner's Lot or Condominium. Such notice is deemed delivered three (3) business days after the time of such mailing, except for notice of a meeting of Owners or of the Board, in which case the notice provisions of the Bylaws control. Any notice to be given to the Master Association may be delivered personally to any member of the Board, or sent by United States mail, postage prepaid, addressed to the Master Association at such address as may be fixed and circulated to all Owners. -87- 3607-29072YCCRM 533351 11 MOM 14..4 CONSTRUCTIVE NOTICE AND ACCEPTANCE. Every Person who owns, occupies or acquires any tight, title, estate or interest in or to any Lot or Condominium or other portion of the Properties consents and agrees to every limit, restriction, easement, reservation, condition and covenant contained in this Master Declaration, whether or not any reference to these restrictions is in the instrument by which such Person acquired an interest in the Ptoperties. ARTICLE XV DECLARANT'S RIGHTS AND RESERVATIONS If there is a conflict between any other portion of the Governing Documents and this Article, this Article shall control. 15.1 CONSTRUCTION RIGHTS. Declatant has the right to (a) subdivide or resubdivide the Properties, (b) complete or modify Improvements to and on the Master Property or any portion of the Properties owned of leased solely or partially by Declarant, (c) alter Improvements and Declatant's construction plans and designs, (d) modify Declarant's development plan for the Properties and the Annexable Ierritory, including designating and redesignating Phases, reshaping the Lots, Condominiums and Master Property, and constructing Residences of larger of smaller sizes, values, and of different types, and (e) construct such additional Improvements as Declatant considers advisable in the course of development of the Properties so long as any Lot or Condominium in the Properties of the Annexable Ierritory remains unsold. Declarant may temporarily erect barriers, close off and restrict access to portions of the Master Property as reasonably necessary to allow Declarant to exercise the tights reserved in this Section so long as an Owner's access to his of het Lot of Condominium is not eliminated. 15.2 SALES AND MARKETING RIGHTS. Declatant's tights under this Master Declaration include the tight to install and maintain such structures, displays, signs, billboards, flags and sales offices as may be reasonably necessary to conduct Declatant's business of completing construction and disposing of the Lots, Condominiums and the Annexable Territory by sale, resale, lease or otherwise... Declatant may use any Lots and Condominiums in the Properties as model home complexes, real estate sales offices or leasing offices. 15.3 CREATING ADDITIONAL EASEMENTS: At any time before acquisition of title to a Lot or Condominium in the Properties by a purchaser .from Declarant, Declarant has the fight to establish on that Lot or Condominium additional licenses, easements, reservations and tights -of -way to itself, to utility companies, of to others as Declarant determines are reasonably necessary to the Properties' proper development and disposal. I5A ARCHITECTURAL RIGHTS.. Declarant and any Person to whom Declarant may assign all of a portion of its exemption under this Master Dechustion need not seek of obtain Design Review Committee approval of any Improvements constructed anywhere on the Properties by Declarant of such Person.. Declarant may exclude portions of the Properties fiom .jurisdiction of the Design Review Committee in the applicable Notice of Addition of. Supplemental Master Declaration. Declatant, may, at its option, establish an additional design review committee for any area exempted from the jurisdiction of die Design Review Committee. -88- 36074907ACCRA 539351.12 1/10106 15.5 USE RESTRICTION EXEMPTION. Declarant and any Person to whom Declarant may assign all or a portion of its exemption under this Master Declaration is exempt from the Governing Documents established in Article II. 15.6 ASSIGNMENT OF RIGHTS Declarant may assign its rights under the Governing Documents to any successor in interest to any portion of Declatant's interest in the Properties by a Recorded written assignment. 15,7 AMENDMENT. No amendment may be made to this Article without the prior written approval of Declarant.. 15.8 POWER OF ATTORNEY.. Each Owner of a Lot or Condominium in the Properties, by accepting a deed to a Lot or Condominium, shall be deemed to have (a) agreed and acknowledged that the Owners own no interest in the Annexable Territory which may be developed, if at all, by Declarant in its sole and absolute discretion and (b) constituted and irrevocably appointed Declarant, for so long, as Declarant owns all or any portion of the Annexable Territory, as his Attorney4n-Fact, for himself and each of his Mortgagees, optionees, grantees, licensees, trustees, receivers, lessees, tenants, judgment creditors, heirs, legatees, devisees, administrators, executors, legal representatives, successors and assigns, whether voluntary or involuntary, and thereby to have conveyed a Power of Attorney coupled with an interest to Declarant as his Attorney in Fact to prepare, execute, acknowledge and Record any instrument for all or any portion of the Annexable Territory. However, nothing set forth herein shall be deemed or construed as an agreement by Declarant that any Owner shall be entitled to any participation in or discretion over the preparation and Recordation of an instrument for all or any portion of the Annexable Ierritoty_ 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 tetras and conditions of the Power of Attorney described in this Section. 15.9 USE OF PROPERTIES, Declarant and its prospective purchasers of Lots and Condominiums are entitled to the nonexclusive use of the Master Association Property without further cost for access, ingress, egress, use or enjoyment, to (a) show the Properties to prospective purchasers, (b) dispose of the Properties as provided in this Master Declaration, and (c) develop and sell the Annexable Territory Declatant and prospective purchasers are also entitled to the nonexclusive use of any portions of the Properties which are pt ivate streets, drives and walkways for ingress, egress and accommodating vehicular and pedestrian traffic to and from the Properties and the Annexable Territory.. The use of the Master Association Property by Declarant may not unreasonably interfere with the use thereofby the other Owners_ 15.10 PARTICIPATION IN MASTER ASSOCIATION. The Master Association shall provide Declarant with written notice of the transfer of any Lot or Condominium and all notices and other documents to which a Mortgagee is entitled pursuant to this Master Declaration, provided that Declarant shall be provided such notices and other documents without making written request therefor. Commencing on the date on which Declarant no longer has an elected representative on the Board, the Mastet Association shall provide Declarant with written notice of all meetings of the Board as if'Declarant were an Owner, and Declarant shall be entitled to have a representative present at all such Board meetings ("Dedarant's Representadve'). The -59- 3607-290725CM%539351.12 rnaM6 Declamnt's rights to receive written notice of meetings and to have a Declatant's Reptescntative present at such meeting shall continue until the later of the date that is ten (10) years after the fast Close of Escrow in the Propetties, or the date of expitation of all applicable statutes of limitations or repose fot the filing of a complaint or suit or other legal remedies against Declarant under the Right to Repair Law (including any tolling periods). The Declaram's Representative shall be entitled to receive copies of the minutes of all open meetings, but it 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.. 15.11 DECLARANT APPROVAL OF ACTIONS:.. 15..11.1 General Rights_ Until Declarant no longer owns a portion of the Properties or the Annexable Tenitory, Declatant's prior written approval is requited for any amendment to the Governing Documents which would impair or diminish Declatant's tight to complete the Properties or the Annexable Ierritory or sell of lease dwellings therein. 15.112 Limit on Actions. Until Declarant no longer owns any Lots or Condominiums in the Properties or the Annexable Ierritory, the following actions, before being undertaken by the Master Association, must first be approved in writing by Declarant (a) Any amendment or action requiring the approval of first Mortgagees; (b) The annexation to the Properties of teal property other than the Annexable Territory pursuant to Section 162, (c) The levy of a Capital Improvement Assessment for the construction of new facilities not constructed on the Master Association Property by Declarant; (d) Any significant reduction of Master Association maintenance or other services; or (e) Any modification of termination of any provision of the Governing Documents benefiting Declarant_ 15.12 MARKETING NAME. the Properties shall be marketed under the general name'"ANDALUSIA AI CORAL MOUNTAIN." Declarant may change the marketing name of, the Properties or designate a different marketing name for any Phase at any time in Dechusnt's sole discretion. Declatant shall notify the DRE of any change in or addition to the marketing name or names of the Properties or any Phase.. ARTICLE XVI ANNEXATION OF ADDITIONAL PROPERTY Additional real property may be annexed to the Properties and become subject to this Master Declaration by any of the following methods: -90- 3607.290121CCRS%539351 12 1110M 16.1 ADDITIONS BY DECLARANT. Declarant may add the Annexable Ierritory to the Properties and bring such added territory under the general plan of this Master Declaration without the approval of the Master Association, the Board, or Owners, so long as Declarant owns any portion of the Annexable Territory. 16.2 OTHER ADDITIONS_ Additional real property may be annexed to the Properties and brought under the general plan of this Master Declaration upon the approval by vote or written consent of members entitled to exercise no less than two-thirds (2/3) of the Master Association's voting power 16.3 RIGHTS AND OBLIGATIONS -ADDED TERRITORY. Subject to the provisions of Section 16.4, when a Notice of Addition containing the provisions required by this Section is Recorded, all provisions in this Master Declaration will apply to the real property described in such Notice of Addition (the 'Added Teirkory') in the same manner as if the real property were originally covered by this Master Declaration.. Thereafter, the tights, powers and responsibilities of the Owners, lessees and occupants of Lots and Condominiums in the Added Ierritory, as well as in the property originally subject to this Master Declaration, will be the same as if the Added Territory were originally covered by this Master Declaration. After the first day of the month following the first Close of Escrow in the Added Territory, the Owners of Lots and Condominiums located in the Added Ierritory shall share in the payment of Assessments to the Master Association to meet Common Expenses of the Properties. Voting rights attributable to the Lots and Condominiums in the Added Ierritory may not be exercised until Annual Assessments have commenced on such Lots and Condominiums. 16.4 NOTICE OF ADDITION. the additions authorized under Sections 16.1 and 16.2 must be made by Recording a Notice of Addition which will extend the general plan of this Master Declaration to such Added Territory. The Notice of Addition for any addition under Section 16 1 must be signed by Declatant. The Notice of Addition for any addition under Section 16.2 must be signed by at least two (2) officers of the Master Association to certify that the Owner approval required under Section 162 was obtained. the Recordation of the Notice of Addition, the Added Ierritory will be annexed to and constitute a part of the Properties and will become subject to this Master Declination; the Owners of Lots and Condominiums in the Added Territory will automatically acquire Membership. No Notice of Addition or Supplemental Master Declaration may revoke the covenants, conditions, restrictions, reservation of easements, or equitable servitudes in this Master Declaration as the same pertain to the teal property originally covered by this Master Declaration 16.5 NOTICE OF ADDITION CONTENT. the Notice of Addition annexing teal property to the Propetties shall contain at least the following provisions: 16.5.1 Master Declaration Reference. A reference to this Master Declaration, which reference shall state the date of Recordation hereof and the Instrument number or other relevant Recording data of Official Records of the County Recorder's office; 16:.51 Extension of General Plan_ A statement that the provisions of this Master Declaration shall apply to the Added Territory as set forth therern; -91- 360749072CCR5t538351 t2 U10106 16.5.3. Description.., A description of the Added Territory, including any Master Association Property and any Master Maintenance Areas; and 16.5A Land Classifications. The land classifications of the Added Territory. 16.6 D&ANNEXATION AND AMENDMENT.. In addition to the rights to amend or terminate a Notice of Addition granted elsewhere In this Master Declaration or in a Notice of Addition, Deolarant may also amend a Notice of Addition or delete all or a portion of a Phase from coverage of this Master Declaration and the Master Associatiods .jurisdiction so long as Declatant is the owner of all of such Phase and provided that (a) an amending instrument or a Notice of Deletion of Territory, as applicable, is Recorded in the same manner as the applicable Notice of Addition was Recorded, (b).Declarant has not exercised any Master Association vote with respect to any portion of such Phase, (c) Assessments have not yet commenced with respect to any portion of such Phase, (d) Close of Escrow has not occurred for the sale of any Lot or Condominium in such Phase, and (e) the Master Association has not made any expenditures or incurred any obligations with respect to any portion of'such Phase. [SJGNAMMS ONNEX7 PAGE] -92- 3607-'"731CCRS%53$35r t] MOM (SlIGNAYURE PAGE 70 MASTER DECIARATIONOF COVENANTSI CONDITIONS AND RESTRICTIONS AND RESERVATION OF EASEMENTS) This Master Declaration is dated for identification purposes I.D.. DESERT DEVELOPMENT LIMIIED PARTNERSHIP, a Delaware limited partnership By T.D Desert Development Corporation, a Delaware corporation Its: G �I Partner By Name: yt tu(—s Title:: jTO t�i1�-3tS�w r� STATE OF CALIFORNIA ) COUNIY OF X ) ss On _M" . 1 * 2006 before me, personally appeared within WIINESS my hand and official seal Si 'tore g - -9;_ Declarant - . .. ..1 . .. . / .. . 1.1 1 • and tide of Wo of sown to me Ine(4 is/are gnamre(g) on the instrument the persono, & executed the instrument. COWA MM O 163M7 (Seal) 1�OLIIr1i.8'QlllMt7tre16, 3607.29072NMILM 538351 12 MOM GOVERNMENT CODE 273617 I CERTIFY UNDER PENALIY OF PERJURY THAI IHE NOIARY SEAL ON THE DOCUMENI IO WHICH IHIS IS AITACHED READS AS FOLLOWS: NAME OF NOTARY: COMMISSION NUMBER: DATE COMMISSION EXPIRES: COUNIY WHERE BONDED: PLACE OF EXECUTION: DAIE: FIDELITY NATIONAL THE BUILDER SERVICES LINDA L NANIELL 1535327 DECEMBER 16, 2008 RIVERSIDE RIVERSIDE, CA MARCH 17, 2006 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Andalusia at Coral Mountain Master Association 81570 Carboneras CA 92253 DOC # 2014-0123868 04104/201411:25 AM Fees: $31,00 Page 1 of 3 Recorded in Official Records County of Riverside Larry W. Ward Assessor, County Clerk & Recorder *"This document was electronically submitted to the County of Riverside for recording** Receipted by: MGREGSTON Above This Linc for Rcroorder s Use) AMENDMENT NO. 1 TO MASTER DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS . FOR ANDALUSIA AT CORAL MOUNTAIN This AMENDMENT NO. I TO MASTER DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS FOR ANDALUSIA AT CORAL MOUNTAIN ("Amendment No. I") is made BY T.D. DESERT DEVELOPMENT LIMITED PARTNERSHIP, a Delaware limited partnership "Declarant"). PREAMBLE A. Declarant is the "Declarant" under the Master Declaration of Covenants, Conditions, Restrictions and Reservation of Easements for Andalusia at Coral Mountain, recorded on March 21, 2006, as Instrument No. 2006-0197684 (with any amendments, the "Declaration"), in the Official Records of Riverside County, California (the -Official Records"). The Declaration is binding upon all of the Properties. B. The development of the Properties is subject to the conditions of approval for Tract Map No: 31681 set forth in Resolution 2004-072, which was adopted by the City Council of the City of La Quints ("City") on July 6, 2004 (collectively, the "Conditions ofApprovar'). C. Condition of Approval 73 requires Declarant to make provision for the continuous and perpetual maintenance of certain public improvements (the "Public Improvements'). D. Section 13.2.7 of the Declaration authorizes Declarant to unilaterally amend the Declaration by Recording a written instrument signed by Declarant in order to comply with any City, County, State or Federal laws or regulations. E. Pursuant to Section 13.2.7 of the Declaration, Declarant now desires to amend the Declaration to provide for the perpetual maintenance of the Public Improvements by the Master Association. 882i0156100002 5964610.3 e0441 12 -1 " DOC #2014-0123858 Page 2 of 3 04/04/201411:25 AM NOW THEREFORE, DECLARANT DECLARES AS FOLLOWS: 1. AMENDMENT OF MASTER MAINTENANCE AREA. Section 1.1.43(a) of the Declaration is hereby amended to add the following item of maintenance to the tern "Master Maintenance Area": (viii) The median in Monroe Street, including the landscaping within said median and the median hardscape. 2. AMENDMENT ND DURATION. The amendments to the Declaration effected pursuant to this Amendment No. 1 may be amended or terminated only (i) by complying with the requirements of Section 13.2 of the Declaration, and (ii) obtaining the prior written consent of the City Engineer of the City of La Quinta. Unless amended or terminated pursuant to the foregoing, this Amendment No. 1 shall continue in full force and effect for so long as the Declaration remains in effect. 3. COVENANTS RUNNING WITH THE LAND. The provisions of this Amendment No. 1 shall run with the Properties, shall be binding upon all persons having or acquiring any interest in the Properties, or any part thereof, their heirs, successive owner; and assigns; shall inure to the benefit of and burden every portion of the Properties and any interest therein, and shall inure to the benefit of and be binding upon Declarant and its successors -in - interest and each Owner and his or her respective successors -in -interest; and may be enforced by Declarant, any Owner, or the Association, and their successive owners and assigns. 4. MISCELLANEOUS. Except as otherwise provided herein, the capitalized terms in this Amendment No. 1 shall have the same meanings as are given such terms by the Declaration. Except as otherwise expressly provided herein, all of the provisions of the Declaration are hereby incorporated by reference as if fully set forth herein. The City is deemed an express third party beneficiary of the terms hereof with the right, but not the obligation, to enforce the terms hereof. [Signatures on next page]' 862.015610.(M102 5964610.3 a0000M -2- [SIGNATURE PAGE TO AMENDMENT NO. 1 TO MASTER DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS FOR ANDALUSIA AT CORAL MOUNTAIN] This Amendment No. 1 has been executed on u i- / 3 2014, to be effective as of the date of its Recordation. T.D. DESERT DEVELOPMENT LIMITED PARTNERSHIP, a Delaware limited partnership By: T.D. Desert Development Corporation, a Delaware corporation Its: General P er By: State of California County of Riverside On F94k t)(10 3. 19,0)4 , beforeme, b odd L 11(6LY1 k )l , Notary Public, personalty appeared �fl )a p �j t �s e and title of the officer) who proved to me on the basis of satisfactory evidence to 6e the person(4whose name is/af; subscribed to the within instrument and acknowledged to me that he/sha4hey executed the same in him authorized capacity(imol; and that by his/betUhsifsignaturVon the instrument the person(K,, or the entity upon behalf of which the personof acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signatur lir -d A) QiIL Y�C� LINDAL. NANTELL Commiae100 • 20E0705 Notary public - Caft"" Rirereide Coullly Comm•Expim Jul 17 T 882/015610-M 5964610.3 a00/00/00 -3=