Legacy Villas CC&Rs 2005 Centex HomesRecording Requested by:
When Recorded Return to:
Daniel E. Olivier, Esq.
74-760 Highway 111, Suite 202
Indian Wells, CA 92210
DOC 2005--0635157
08/05/2005 08:00A Fee:349.00
Page 2 of 116
Recorded in Official Records
County of Riverside
Larry W. Ward
Assessor, County Clerk & Recorder
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PAGE
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POOR 1 NOGOR
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MISC.
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j COPY
LONG
REFUND
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EXAM
DECLARATION OF
COVENANTS, CONDITIONS AND RES`IRICTIONS
FOR
LEGACY VILLAS AT LA QUINTA HOMEOWNERS WNERS ASSOCIATION
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TABLE OF CONTENTS
Page
RECITALS (1))
ARTICLE I DEFINITIONS 2
Section 1. Annual Mitigation Fee 2
Section 2. Architectural Coznznittee 2
Section 3. Architectural Guidelines 2
Section 4. Articles 2
Section 5. Assessments 2
Section 6. Association 3
Section 7. Association Common Area 3
Section 8. Association Rules 3
Section 9. Association's Common Area Maintenance Manual. 3
Section 10. Board of Directors 3
Section 11. Building Common Area 3
Section 12. Bylaws 4
Section 13. City 4
Section 14. Clubhouse 4
Section 15. Common Area , 4
Section 16. Conunon Expenses 4
Section 17. Common Interest Development 5
Section 18. Condominium 5
Section 19. Condominium Building 5
Section 20. Condominium Plan 6
Section 21. County 6
Section 22. Covered Property 6
Section 23. Declarant/Grantor 6
Section 24. Declarant's Consent Period 6
Section 25. Declaration 6
Section 26. Designated Exclusive Use Common Area Walls or Floors 6
Section 27. Development Agreement 6
Section 28. Entry Improvements 7
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TABLE OF CONTENTS
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Section 29. Exclusive Use Common Area
(11:1'
Section 30. Governing Documents
Section 31. Homeowner Maintenance Manual ... 8
Section 32. HVAC 8
Section 33. Improvements 8
Section 34. Institutional Holder 9
Section 35. Lock -Off Unit 9
Section 36. Operations Manual 9
Section 37, Maintenance Obligations 9
Section 38. Managing Agent 9
Section 39. Member 9
Section 40. Module 10
Section 41. Mortgage 10
Section 42. Notice and Hearing 10
Section 43. Operator.... 10
S ecti on 44. Owner 10
Section 45, Phase 10
Section 46. Private Drives 10
Section 47. 4 Project 10
Section 48. Public Report 10
Section 49.' Recreational Amenities 10
Section 50. Management Services Desk 11
Section 51. Rental Program Facilities 11
Section 52. Resort Rental Program 11
Section 53. Separate Interest 11
Section 54. Supplemental Declaration 11
Section 55. Transient Occupancy Tax or TOT 11
Section 56. Unit 12
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TABLE OF CONTENTS
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11111))
ARTICLE II CREATION OF CONDOMINIUMS 13
Section 1. Designation of Condominiums. 13
Section 2. Interest in Common Area 13
Section 3. Conveyance of Association Common Area to Association 13
Section 4. Project Overview 14
ARTICLE III RIGHTS OF ENJOYMENT 15
Section 1. Members' Right of Enjoyment 15
Section 2. Delegation of Use 16
Section 3. Waiver of Use 16
ARTICLE IV USE RESTRICTIONS 17
Section I. Residential Use 17
Section 2. Commercial Use 17
Section 3. Interior of Units 17
Section 4. Hard Surface Floors 17
Section 5. No Obstruction of Common Area 17
Section 6. Signs. 18
Section 7. Animals 18
Section 8, Structural Alterations 19
Section 9. Utilities 19
Section 10. Trash 19
Section 11. Vehicles 19
Section 12. Rules of Association 19
Section 13. Conduct in Units and Common Area 19
Section 14. Rental Units 20
Section 15. Antennas 21
Section 16. Window Covers 21
Section 17. View Obstructions 21
Section 18. Water Beds and Limitations On Size of Aquariums 21
Section 19. Toxic or Noxious Matter .. 21
TABLE OF CONTENTS
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Page
412.425
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23
23
23
23
24
25
25
25
26
26
26
26
26
Section 20. No Outside Diying and Laundering
Section 21. Garages/Parking/Golf Carts
ARTICLE V MEMBERSHIP AND VOTING RIGHTS
Section 1. Membership
Section 2. Transfer
Section 3. Three Classes of Membership
Section 4. Required Vote
Section 5. Special Class A Voting Rights
Section 6, Vesting of Voting Rights
Section 7. Title 7 Decisions
ARTICLE VI COVENANT FOR MAINTENANCE ASSESSMENTS ..
Section 1.
Section 2.
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
Section 8.4
Section 9. h
Section 10.
Section 11.
Section 12.
.
11\IIIIIIIII\ Section 13
Section 14.
Section 15.
Section 16.
Section 17.
Covenant to Pay Assessments
Purpose of Assessments
Regular Assessments
Special Assessments
Increases in Regular and Special Assessments 77
Reimbursement Assessments 28
Annual Mitigation Fee Assessments 28
Clubhouse Assessments 28
Allocation of Assessments to Units 29
Date of Commencement of Regular Assessments: Due Dates 29
Certificate of Payment 29
No Offsets 29
Reserves 29
Pledge of Assessment Rights 30
Effect of Nonpayment of Assessments; Remedies of the Association 30
Subordination to Certain Trust Deeds 33
Operating Expense Contribution 33
TABLE OF CONTENTS .
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11))ARTICLE VII MANAGEMENT OF THE ASSOCIATION AND THE PROJECT 34
General Powers of the Association 34
Contracts of the Association 35
Additional Powers of Association ,. 35
Maintenance of Condominium Buildings and Common. Area by the
Association 36
Section 5. Repair and Maintenance of the Units and Exclusive Use Common
Section 1.
Section 2.
Section 3.
Section 4.
Section 6.
Section 7.
Section 8.
Section 9.
Section 10.
Section 11.
Section 12.
Section 13.
Areas by Owners
Additional Restrictions on Power of the Board
Limitation on Board Authority to Contract
Maintenance of Public Utilities
Rights of Entry
Association Rules
Duty to Report
Reservation for Periodic Inspections, Repairs and Maintenance
Security
37
38
38
39
39
39
40
40
41
42
42
43
43
43
43
43
44
44
44
46
46
46
46
48
ARTICLE VIII INSURANCE
Section 1.
Section 2.
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
Section 8.
Section 9.
ARTICLE IX
Section 1.
Section 2.
Section 3.
Section 4.
DEO `CCB:.R'....:::.'. 1
Duty to Obtain Insurance; Types
Waiver of Claims Against Association
Individual Insurance
Notice of Expiration Requirements
Insurance Premiums
Trustee for Policies
Actions as Trustee
Annual Insurance Review
Required Waiver
DESTRUCTION OF IMPROVEMENTS
Restoration Defined
Insured Casualty
Restoration Proceeds
Restoration Contract
Section 5
Section 6
Section 7
Section 8
ARTICLE X
ARTICLE XI
ARTICLE XII
Section 1.
Section 2.
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
Section 8.
ARTICLE XIII
Section _�'
�ICL'L1on I.
Section 2.
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
Section 8.
Section 9.
Section 10.
ARTICLE XIV ENFORCEMENT OF BONDED OBLIGATIONS
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Page
Insurance Trustee 48
• Authority To Effect Changes 49
Minor Repair, Reconstruction and Restoration 1r 49
Damage Or Destruction To A Unit 50
PROPERTY TAXES 51
PROHIBITION AGAINST PARTITION OR SEVERANCE
OF UNIT FROM INTEREST IN COMMON AREA 52
ARCHITECTURAL CONTROL 53
Architectural Approval 53
Architectural Committee 53
Submission, Approval and Conformity of Plans 54
Appeal 55
General Provisions 55
Nonapplicability to Declarant 56
Reconstruction of Condominiums 56
No Liability 56
RIGHTS OF INSTITUTIONAL HOLDERS OF MORTGAGES 57
Notices of Actions 57
Rights of Institutional Holders Upon Foreclosure 57
Consent of Eligible Holders 57
Amendments to Documents 58
Additional Rights of Institutional Holders 59
Information 59
Priority of Mortgage Lien 59
Priority on Distribution of Proceeds 60
Special FNMA-FHLMC Provisions 60
Consent 60
61
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ARTICLE XV EMINENT DOMAIN ;12.11
Section 1.
Section 2.
Section 3.
Section 4.
Section 5.
Section 6.
Definition of Taking 62
Representation by Association in Condemnation Proceeding 62
Award for Condominiums 62
Inverse Condemnation 62
Awards for Owners' Personal Property and Relocation Allowances 62
Notice to Members 63
64
Ownership of Condominium 64
No Separate Conveyance 64
Delegation of Use 64
Partition 64
Easements 65
Declaration Subject to Easements 65
Utilities 65
Encroachment 66
Common Area Easements 66
Exclusive Use Easements 67
Interim Easements to Owners 67
Association Easement 67
Construction and Sales Easements 67
Easements for Resort Rental Program Services 68
Entry Gates 68
Inspection Easements 68
Establishment of Easements and/or Rights 69
No Easement for Light, Air and View 69
INTEGRATED NATURE OF THE COVERED PROPERTY 70
Development of the Project 70
Annexation Without Approval and Pursuant to Plan 70
Annexation Pursuant to Approval 71
ARTICLE XVI OWNERSHIP AND EASEMENTS
Section 1.
Section 2.
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
Section 8.
Section 9.
Section 10.
Section 11.
Section 12.
Section 13.
Section 14.
Section 15.
Section 16.
Section 17.
Section 18.
ARTICLE XVII
Section 1.
Section 2.
Section 3.
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ll5)Section 4. Supplemental Declarations
Section 5. Mergers or Consolidations 1
Section 6. Right of De -Annexation 71
ARTICLE XVIII ENFORCEMENT 72
Section 1. Enforcement and Nonwaiver 72
Section 2. Notice of Actions Against Declarant 72
ARTICLE XIX GENERAL PROVISIONS 73
Section 1. Severability of Covenants 73
Section 2. Term 73
Section 3. Construction 73
Section 4. Amendments 73
Section 5. Dissolution 74
Section 6. Nonliability of Officials 74
Section. 7. Information to Owners and Disclosure to Prospective Purchasers 75
Section 8. Violation of Declaration 76
Section 9. Statutory References; Fixed Amounts 76
Section 10. Corrnnon Plan Declaration 76
Section 11. Limitation of Restrictions on Declarant 77
Section 12. Declarant's Obligation to Deliver Documents to Association . 77
Section 13. Declarant's Reservation of Use Rights 77
Section 14. Common Area Inspections 78
ARTICLE XX CLUBHOUSE 79
`Section 1. Clubhouse Ownership and Easement0
79
Section 2. Clubhouse Management 79
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Section 3. Contribution to Cost of Operation 79
Section 4. Management Services Desk 80
Section 5. Amendment 80
ARTICLE XXI RESORT RENTAL PROGRAM 81
Section 1. Acknowledgement 81
Section 2. Easements for Resort Rental Program Services 81
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li)Section 3. No Competing On -Site Rental Programs 81
Section 4. Operator 81
Section 5. Amendment 82
ARTICLE XXII CITY REQUIREMENTS 83
Section 1. City Requirements 83
Section 2. Development Agreement S3
Section 3. One -Time Mitigation Fee 83
Section 4. Annual Mitigation Fee $3
Section 5. Transient Occupancy Tax 84
Section 6. Rental Tracking System 84
Section 7. Rental Management Program 84
Section 8. Architectural Changes Require City Approval 85
Section 9. Enforcement by the City of La Quinta 85
Section 10. Written Consent of the City Required to Modify Certain Provisions 86
Section 11. Written Consent of the City Required to Terminate this Declaration 86
Section 12. Coxrunon Area Lighting 86
Section 13. Signs 86
Section 14. Parking 86
Section 15. Protection of Bighorn Sheep 87
Section 16. Large Outdoor Events 87
Section 17. Communication Facilities/Satellite Dish 87
Section 18. Landscape Maintenance 87
Section 19. Centralized Mail Delivery System 87
Section 20. Clubhouse Expansion 87
Section 21. Bike Racks 87
Section 22. City Access Easement 87
Section 23. ADA Units 88
EXHIBIT "A" LEGAL DESCRIPTION OF THE INITIAL COVERED PROPERTY ... "A" - 1
EXHIBIT "B-1" LEGAL DESCRIPTION OF THE PROPERTY SUBJECT TO
ANNEXATION "B-1" - 1
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EXHIBIT "B-2" LEGAL DESCRIPTION OF ADDITIONAL PROPERTY SUBJECT
TO ANNEXATION "B-2" -
EXHIBIT "C-1" CLUBHOUSE EASEMENT "C-1" - 1
EXHIBIT "C-2" ENTRY IMPROVEMENTS EASEMENT "C-2" - 1
EXHIBIT "D" DESCRIPTION AND DEPICTION OF MANAGEMENT SERVICES
DESK "D"-1
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DFO/CC�S.R's_ver.14
DECLARATION OF
COVENANTS, CONDITIONS AND RESTRICTIONS
\ci\I
FOR
LEGACY VILLAS AT LA QUINTA HOMEOWNERS ASSOCIATICO
THIS DECLARATION is made this id- day ofv 5 , 2005",by
CENTEX HOMES, a Nevada general partnership, dba Centex Destination. CENTEX
HOMES, a Nevada general partnership, dba Centex Destination Properties, its successors and
assigns, shall hereinafter be referred to as "Declarant." The capitalized terms used in this
Declaration shall include those terms defined in Article 1 below or otherwise defined in this
Declaration.
RECITALS
A. Declarant is the owner of certain real property described in Exhibit "A"
attached hereto, which shall be the initial Covered Property under this Declaration.
B. Declarant is also the owner of additional real property more particularly
described in Exhibit "B-1" attached hereto, which may be subsequently annexed to and become a
part of the Covered Property according to the procedures hereinafter described.
C. Declarant intends to develop on the Covered Property a common interest
development consisting of a "condominium project" as defined in Section 1351(f) of the
California Civil Code. These covenants, conditions and restrictions are imposed upon the
Covered Property in order to provide for its management and to enhance and protect the value,
desirability and attractiveness of the Covered Property.
D. In furtherance of these objectives, Legacy Villas at La Quinta
Homeowners Association, a California nonprofit mutual benefit corporation, has been
incorporated and will manage the Project, maintain and administer the Common Areas,
administer and enforce the Governing Documents of the Association, and perform such other
acts as may benefit the Project.
NOW, THEREFORE, Declarant covenants and agrees that the Covered Property,
the Project and all of the Condominiums, including any improvements added or constructed on
or about the Project in the future, shall be held, conveyed, assigned, hypothecated, encumbered,
leased, used, occupied and improved subject to the following limitations, restrictions, covenants
and conditions, for the purpose of creating the condominium project and mutually benefiting the
Covered Property, the Project and all of the Condominiums, and the future Owners thereof. All
of the covenants, conditions and restrictions set forth herein shall run with the land, shall be
enforceable as equitable servitudes, and shall be binding upon and inure to the benefit of all
parties having or acquiring any right, title or interest in the Covered Property, the Project or any
of the Condominiums.
DEO.'CU:A s.vcr. 4
ARTICLE I
DEFINITIONS
The following terms used in this Declaration are defined as follows:
44(\(
Section 1. Annual Mitigation Fee. The term "Annual Mitigation Fee" shall
mean a charge against each Owner and his or her Condominium representing an annual fee,
currently $1,000.00 per year, to be collected by the Association and paid to the City in
accordance with Section 4, Article XXII of this Declaration entitled "CITY REQUIREMENTS."
Section 2. Architectural Committee. The term "Architectural Committee" or
"Committee" shall mean and refer to the Architectural Committee created pursuant to Article XII
of this Declaration entitled "ARCHITECTURAL CONTROL."
Section 3. Architectural Guidelines. The teiui "Architectural Guidelines"
means the design criteria as may be adopted under the provisions of Article XII of this
Declaration entitled "ARCHITECTURAL CONTROL".
Section 4. Articles. The term "Articles" shall mean and refer to the Articles
of Incorporation of the Association, which are or shall be filed in the Office of the Secretary of
State of California, as amended from time to time.
Section 5. Assessments. The following definitions shall apply to the
assessments described below:
(a) Regular Assessment shall mean the amount which is to be paid by
each Owner to the Association for Common Expenses as provided by the tenns of this
Declaration.
(b) Special Assessment shall mean a charge against each Owner and
his or her Condominium, representing a portion of the cost to the Association for installation or
construction of any capital improvements on any of the Common Arca and other purposes which
the Association may from time to time authorize pursuant to the provisions of this Declaration.
(c) Reimbursement Assessment shall mean a charge against a
particular Owner and his or her Condominium for the'purpose of reimbursing the Association for
costs incurred in bringing the Owner and his or her Condominium into compliance with the
provisions of the Governing Documents, or any other charge designated as a Reimbursement
Assessment in this Declaration or the Association Rules, together with attorney's fees and other
charges payable by such Owner, pursuant to the provisions of this Declaration.
(d) Reconstruction Assessment shall mean a charge against each
Owner and his or her Condominium representing a portion of the cost to the Association for
reconstruction of any portion of the Comrnon Arca pursuant to the provisions of this Declaration.
UE0 CCd:k's.ver.i-a
.(e) Annual Mitigation Fee Assessment shall mean an amount collected
by the Association from each Owner for the Annual Mitigation Fee which shall be deposited in a
separate account and paid to the City in accordance with Section 4 of Article XXII of this
Declaration. �[ \
(f) Clubhouse Assessment shall mean an amount, if any, collected by
the Association from each Owner for a portion of the costs incurred by the Association pursuant
to contracts approved by .the California Department of Real Estate relating to the operation,
maintenance, management, replacement and repair of the Clubhouse prior to its conveyance to
the Association, as described in Section 3 of Article XX of this Declaration entitled
"CLUBHOUSE."
Section 6. Association. The "Association" shall mean and refer to
LEGACY VILLAS AT LA QUINTA HOMEOWNERS ASSOCIATION, a California nonprofit
mutual benefit corporation, its successors and assigns.
Section 7. Association Common Area. The term "Association Common
Area" means all real property owned, from time -to -time, in fee or by easement, by the
Association, which shall consist of all real property within the Project and certain off-site
easement areas, excepting the Units and the Building Common Area.
Section S. Association Rules. The term "Association Rules" shall mean and
refer to the rules and/or regulations adopted by the Board from time -to -time.
Section 9. Association's Common Area Maintenance Manual. The term
"Association's Common Area Maintenance Manual" refers to the manual which niay be
prepared by Declarant or its consultants and provided to the Association, specifying obligations
for maintenance of the Common Area, as updated and amended from time to time.
Section 10. Board of Directors. The term "Board of Directors" or "Board"
shall mean and refer to the duly elected Board of Directors of the Association.
Section 11. Building Common Area. The teem "Building Common Area" shall
mean and refer to that portion of each Phase of the Project within the outside perimeter walls of
each Condominium Building within such Phase, as such Condominium Building is described on
the Condominium Plan for such Phase, including, without Iimitation, stairs, stairwells, patios,
balconies and other improvements or fixtures affixed to a Condominium Building, and excluding
individual Units within such Condominium Building and the airspace surrounding such
Condominium Building. Each Owner shall have, as appurtenant to the Owner's Condominium,
an undivided fractional interest in all of the Building Common Area in the Condominium
Building in which such Owner's Unit is located, as a tenant in common with all other Owners of
Units in that Condominium Building. Such undivided fractional interest cannot be separated
from the Condominium to which it is appurtenant, and any conveyance or transfer of the
Condominium includes the undivided fractional interest in the Building Common Area to which
it is appurtenant, The Building Common Area includes the bearing walls located within a Unit
and all structural properties within a Unit which may be required for support of the
Condominium Building within which the Unit is located, except for the finished surfaces thereof.
ULU'(.L&It s.ver.14 }
Any utility facilities serving more than one Unit which are located in a plenum area (which is the
Building Common Area between the ceilings of the Units and the floor of the Units above) inside
of perimeter Building Common Area walls or dropped ceilings or otherwise in an area
designated as Building Common Area are part of Building Common Area, as shown on the
Condominium Plan.
Section 12. Bylaws. The term "Bylaws" shall mean the Bylaws of the
Association, as amended from time to time.
Section 13. Cj y. The term "City" shall mean and refer to the City of La
Quinta, California, a municipal corporation of the State of California.
Section 14. Clubhouse. The term "Clubhouse" shall mean that certain real
property described as Lot 1 of Tract No. 31379, as shown on the recorded subdivision map for
the Project, and all Improvements located thereon. Upon conveyance of the Clubhouse by
Declarant to the Association, the Clubhouse will become part of the Association Common Area.
It is anticipated that the Clubhouse will be conveyed to the Association in the last Phase of the
Project. The Owners in all Phases of the Project will have an easement in and to the Clubhouse
until such conveyance of the Clubhouse is recorded in the Official Records of the County. Such
easement shall be in substantially the same form as that attached hereto as Exhibit "C-1".
Notwithstanding the foregoing, use and control of a portion of the Clubhouse for operation of the
Resort Rental Program shall be reserved to Declarant, its successors, assigns and third party
contractors, as more particularly described in Article XXI of this Declaration entitled "RESORT
RENTAL PROGRAM."
Section 15. Common Area. The term "Common Area" shall mean all portions
of the Project except the Units, and shall include all Recreational Amenities as well as all other
land, structures and facilities within the Covered Property, all as specifically defined and
described in the recorded Condominium Plan for the Project. The Owners will own a fractional
undivided interest in common in a portion of the Common Area (Building Common Area), and
the Association will own other portions of the Common Area (Association Common Area), as
more particularly described herein. Certain portions of the Common Area may also be
designated as Exclusive Use Common Area, as defined herein.
Section 16. Common Expenses. The term "Common Expenses" shall mean
and refer to the actual and estimated costs of:
_ `N1100' (a) maintenance, management, operation, repair and, where
applicable, replacement of the Common Area, and all other areas and Improvements within the
Covered Property which are maintained by the Association;
(b) due but unpaid Regular, Special, Reconstruction, Reimbursement,
Annual Mitigation Fee and Clubhouse Assessments;
(c) maintenance by the Association of areas within the public right-of-
way of public streets in the vicinity of the Covered Property as provided in this Declaration or
pursuant to agreements with the City or other governnienta] authority having jurisdiction;
DEU'L..dcf<14 4
(d) costs of management and administration of the Association
including, but not limited to, compensation paid by the Association to managers, accounta
attorneys and employees;
(e) the costs of utilities, cable television, trash pickup and disposa?,
gardening and other services benefiting Owners, their Condominiums and/or the Common Area,
to the extent such services are paid for by the Association and not separately and individually
billed directly to Owners;
(1) the costs of fire, casualty, liability, workers' compensation and
other insurance covering the Common Area, the Project and the Association;
(g)
(h)
the costs of any other insurance obtained by the Association;
reasonable reserves as deemed appropriate by the Board;
(i) the costs of bonding of the members of the Board, any professional
Managing Agent or any other person handling the funds of the Association;
(j) any taxes paid by the Association;
(k) amounts paid by the Association for discharge of any lien or
encumbrance levied against the Common Area or portions thereof;
(1) costs incurred by the Architectural Committee or other committees
of the Association; and
(m) such other costs or expenses incurred by the Association in
connection with the Common Area, the Governing Documents, or in furtherance of the purposes
of the Association or in the discharge of any obligations imposed on the Association by this
Declaration or other Governing Documents.
Section 17. Common Interest Development. The teen "Common Interest
Development" shall mean and refer to a condominium project as defined in California Civil
Code Section 1351(f). A condominium project is a development consisting of Condominiums as
described below.
Section 18. Condominium. The term "Condominium" shall mean and refer to
an estate in the Covered Property, defined as a "Condominium" pursuant to California Civil
Code Section 1351(f), and consisting of a separate fee interest in a Unit coupled with an
undivided fractional interest as tenant in common in all or a portion of the Building Common
Area, all as described and defined in this Declaration, the recorded Condominium Plan for the
Project, and the.deed conveying a Condominium to an Owner.
Section 19. Condominium Building. The term "Condominium Building" shall
mean and refer to a separate building containing one or more Units. Each Condominium
Building shall be separately identified on the Condominium Plan for each Phase of the Project.
DECKC.&R s.ver.11 3
Section 20. Condominium Plan. The tern "Condominium Plan" shall mean
each condominium plan and, collectively, all condominium plans, and any amendments thereto,
recorded by Declarant for the Project and all Phases thereof in accordance with California Civil
Code Section 1351. In interpreting conveyances, declarations and plans, the existing physical
boundaries of a Unit constructed, or reconstructed, in substantial accordance with the
Condominium Plan, shall be conclusively presumed to be its boundaries rather than the
description expressed in any such conveyance, declaration or plan, regardless of settling or
lateral movement of the building and regardless of minor variances, between boundaries as
shown on the Condominium Plan or in the conveyance or this Declaration and those of the
building as constructed.
Section 21. County. The term "County" shall mean and refer to Riverside
County, California.
Section 22. Covered Property. The term "Covered Property" shall mean and
refer to all of the real property, whether owned in fee or. by casement, described in Exhibit "A"
attached hereto and, subsequent to annexation, any real property, whether owned in fee or by
easement, described in Exhibit "B-1" attached hereto, which becomes subject to this Declaration.
Section 23. Declarant/Grantor. The terms "Declarant" or "Grantor" shall mean
and refer to CENTEX HOMES, a Nevada general partnership, dba Centex Destination
Properties, its successors and assigns.
Section 24. Declarant's Consent Period. The term "Declarant's Consent
Period" shall mean and refer to the period of time commencing upon the conveyance of the first
Unit under a Public Report and ending ten (10) years after the conveyance of the first Unit in the
last Phase of the Project, '1 �+
Section 25. Declaration. The terra "Declaration" shall mean this Declaration
of Covenants, Conditions and Restrictions for Legacy Villas at La Quinta Homeowners
Association, as amended and supplemented from time to time.
Section 26. Designated Exclusive Use Common Area Walls or Floors. The
term "Designated Exclusive Use Common Area Walls or Floors" refers to those portions of the
Building Com non Area consisting of walls and floors and internal equipment located within
such walls or floors such as, but without limitation, plumbing, ventilation facilities and electrical
wires, which are located between two (2) adjacent Units (either horizontally or vertically) in a
Condominium Building, which walls, floors and internal equipment serve only the adjacent
Units, and which shall be automatically allocated as Exclusive Use Common Area appurtenant to
the adjacent Units for the exclusive use of any Owner who acquires fee title to two (2) or more
adjacent Units separated by such wall or floor, subject to compliance with the requirements of
this Declaration. Any such Designated Exclusive Use Common Area Walls or Floors shall be in
effect only during the time such Owner owns the adjacent Units separated by such wall or floor.
Section 27. Development Agreement. The term "Development Agreement"
shall mean that certain Development Agreement entered into by the City and Declarant dated
November 20, 2003 and recorded on December 12, 2003 as Instrument No. 2003-972732, in the
DEO.CC&R's.ver. I4 6
Official Records of Riverside County, California, and re-recorded on January 7, 2004 as
Instrument No. 2004-0009685 in said Official Records, as the same may be amended from tim
to time.
Section 28. Entry Improvements. The term "Entry Improvements" shall mean
and refer to the improvements, including streets, curbs, gutters, sidewalks, landscaping,
gatehouse and entry gates, located within (i) Lots A, F, J, H and I of Tract No. 31379 as shown
on the recorded Subdivision Map for the Project, and (ii) the easement for access described in
that certain Grant of Easement and Consent recorded on October 30, 2003 as Instrument No.
858763, Official Records of Riverside County, California. Upon conveyance of the Entry
Improvements by Declarant to the Association, the Entry Improvements will become part of the
Association Common Area. It is anticipated that the Entry Improvements will be conveyed to
the Association in the last Phase of the Project. The Owners in all Phases of the Project will
have an easement in and to the Entry Improvements until such conveyance of the Entry
Improvements is recorded in the Official Records of the County. Such easement shall be in
substantially the same form as that attached hereto as Exhibit "C-2".
Section 29. Exclusive Use Common Area. The term "Exclusive Use Common
Area" shall mean and refer to those portions of the Common Area which are designated by this
Declaration and/or the Condominium Plan for any Phase of the Project for the exclusive use of
one (1) or more, but fewer than all, of the Owners within. such Phase and which is or will be
appurtenant to the Separate Interest(s) pursuant to California Civil Code Section 1351 (i). Each
such grant of use of the Exclusive Use Common Area shall be a right appurtenant to the
respective Unit(s) for the exclusive uses and purposes as set forth herein and/or in the
Condominium Plan for such Phase of the Project and may not be conveyed or transferred apart
from the Unit(s). If there are minor variances between physical boundaries of the Exclusive Use
Cornmon Area and boundaries shown on a deed or Condominium Plan, it shall be conclusively
presumed that the physical boundaries are the correct boundaries, The Exclusive Use Common
Areas shown and described on the Condominium Plan may consist, without limitation, of the
following: Exclusive Use Entry; Exclusive Use Balcony; Exclusive Use Patio; and Exclusive
Use Parking Space or Garage, defined as follows:
{i) Exclusive Use Entry. The terse "Exclusive Use Entry"
refers to those portions of the Common Area, if any, designated as "Exclusive Use Entry" on a
Condominium Plan for any Phase of the Project.
111.11111\la/ (ii) Exclusive Use Balcony. The term "Exclusive Use
loony" refers to those portions of the Common Area, if any, designated as "Exclusive Use
Balcony" on a Condominium Plan for any Phase of the Project.
(iii) Exclusive Use Patio. The term "Exclusive Use Patio"
refers to those portions of the Common Area, if any, designated as "Exclusive Use Patio" on a
Condominium Plan for any Phase of the Project.
(iv) Exclusive Use Parking Space or Garage. The term
"Exclusive Use Parking Space" or "Exclusive Use Garage" refers to those portions of the
DEO;CC&R's.ver.l4
Common Area, if any, designated as "Exclusive Use Parking Space" or "Exclusive Use Garage"
on a Condominium Plan for any Phase of the Project.
In
addition to the Exclusive Use Com non Areas described above and in the
Condominium Plan for any Phase of the Project, the following are Exclusive Use Common
Areas allocated exclusively to the Separate Interests to which they pertain:
*►
(a) Any shutters, awnings, Window boxes, doorsteps, stoops, porches,
entry ways, balconies, patios, exterior doors, door frames, and hardware incident thereto, screens
and windows or other fixtures designed to serve a single Unit, but located outside the boundaries
of the Unit, are Exclusive Use Common Areas allocated exclusively to that Unit;
(b) Internal and external telephone wiring designed to serve a single
Unit, but located outside the boundaries of the Unit, are Exclusive Use Common Areas allocated
exclusively to that Unit;
(c) HVAC systems designed to serve a single Unit, but located outside
the boundaries of the Unit, the surfaces where such systems are located, and the wiring and
plumbing for such HVAC systems, are Exclusive Use Common Areas allocated exclusively to
such Unit; andJ
(d) If applicable, and effective only so long as adjacent Units are
owned by a single Owner, the Designated Exclusive Use Common Area Walls or Floors, as
defined in this Declaration, are Exclusive Use Common Areas allocated exclusively to the
adjacent Units.
Except as expressly provided in this Declaration or any Supplemental Declaration, or the
Condominium Plan for any .Phase of the Project, no other portionof the Project is Exclusive Use
Common Area.
Section 30. Governing Documents. The term "Governing Documents" shall
mean and refer to this Declaration and any Supplemental Declarations, the Articles, the Bylaws,
the Association Rules and any other operating rules of the Association, and any other documents
or amendments to documents which govern the operation of the Project or the Association.
Section 31. Homeowner Maintenance Manual. The terrn "Homeowner
Maintenance Manual" refers to the manual which may be prepared by Declarant or its agents and
provided to the Owners, specifying obligations for maintenance of the Units, as updated and
amended from time to time.
Section 32. HVAC. The term "HVAC" shall mean and refer to a heating,
ventilation and air conditioning unit and appurtenant wiring and plumbing.
Section 33. Improvements. The term "Improvements" shall include buildings,
outbuildings, Private Drives, paths, walkways, sidewalks, gates, driveways, parking areas
(including garages, carports and uncovered parking spaces), fences, • walls, screening walls,
retaining walls, stairs, balconies, decks, patios, patio covers, skylights, hedges, windbreaks,
uro,cc&R's.vtn. is a
plantings, trees and shrubs, landscape medians, pools, spas, fountains, utility facilities, poles,
signs (including street name signs, traffic control signs, markings and other devices), drainage
facilities and retention basins, and all other structures, installations and landscaping
improvements of every type and kind installed, constructed, reconstructed, erected, altered or
modified within the Project. The terra "Improvements" shall also specifically include any
alteration, modification or addition to a Unit or to any Exclusive Use Common Area appurtenant
to a Unit, including, without limitation, room partitions, structural alterations, additions or
alterations to a Unit which cause penetration(s) which puncture through the drywall, ceilings or
surface flooring of a Unit (excepting any puncture of drywall necessary for hanging pictures and
mirrors within a Unit, which puncture is not termed as an Improvement for purposes of this
Declaration), installation of hard surface flooring, or any installation or alteration which might
impact or affect in any manner Common Area or other Units.
Section 34. Institutional Holder. The term "Institutional Holder" shall mean
and refer to any beneficiary of a deed of trust or mortgagee of a mortgage which encumbers a
Condominium and which is a bank or savings and loan association or established mortgage
company or other entity chartered under federal or state laws, an insurance company, or any
federal or state agency.
Section 35. Lock -Off Unit. The term "Lock -Off Unit" shall mean those
certain Units in the Project which have been constructed to provide that a portion of the Unit
may be locked off from the balance of the Unit and used as a separate dwelling or rental unit.
Section 36. Operations Manual. The term "Operations Manual" refers to the
manual which may be prepared by Declarant or its consultants and provided to the Association,
specifying operational standards and requirements to be followed by the Association in its
operation and care of the Common Area, landscaping and other Improvements in the Project, as
updated and amended from time to time.
Section 37. Maintenance Obligations. The term "Maintenance Obligations"
refers to the Association's obligations and each Owner's obligations to perform (i) all reasonable
maintenance consistent with the terms of the Operations Manual, the Association's Common
Area Maintenance Manual, and the Homeowner Maintenance Manual, respectively, and any
maintenance obligations and schedules in any warranty offered by Declarant or any
manufacturer, and any maintenance obligations and schedules otherwise provided to either the
Association or the Owners by Declarant or any manufacturer; and (ii) any commonly accepted
maintenance practices to prolong the life of the materials and construction of the Common Area
and/or the Units, as applicable, as updated and amended from time to time.
Section 38. Managing Agent. The terra "Managing Agent" shall mean and
refer to a person or entity, who for compensation, or in expectation of compensation, exercises
control over the assets of the Association. However, a "Managing Agent" does not include a
full-time employee of the Association or a regulated financial institution operating within the
normal course of its regulated business practice.
Section 39. Member. The term ` i'viernber" shall mean and refer to each person
entitled to membership in the Association as provided in the Governing Documents.
DEOfCC&R's.vei.14 ``-y
Section 40. Module. The term "Module" shall mean and refer to each Module,
if any, designated on the Condominium Plan for any Phase of the Project. Each Module is a
three-dimensional portion of a parcel or lot in any Phase of the Project created pursuant to
California Govermnent Code Section 66427. The lower and upper boundaries of each Module
shall be set forth in the Condominium Plan for each Phase of the Project that contains a Module.
The lateral boundaries of each Module are vertical planes which shall be set forth in the
Condominium Plan for each Phase of the Project that contains a Module. A Module includes all
land and Improvements (whether now or hereafter constructed) within its boundaries.
Condominium Plans may, but are not required to, designate Modules for any Phase of the
Project.
Section 41. Mortgage. The term "Mortgage" shall mean and refer to any duly
recorded and valid mortgage or deed of trust encumbering a Condominium.
Section 42. Notice and Hearing. The term "Notice and Hearing" shall mean
and refer to the procedure which gives an Owner notice of an alleged violation of the Governing
Documents and the opportunity for a hearing before the Board or a Committee appointed by the
B oard.
Section 43. ,Operator. The term "Operator" shall mean and refer to the
operator and manager of the Resort Rental Program, as described in Article XXI of this
Declaration entitled "RESORT RENTAL PROGRAM."
Section 44. Owner. The teen "Owner" shall mean and refer to one or more
persons or entities holding fee title or an equitable ownership interest in any Condominium,
including purchasers under installment land sale contracts, but excluding those having such
interest merely as security for the performance of an obligation.
Section 45. Phase. The term "Phase" shall mean and refer to one or more lots,
parcels and/or Modules within the Project improved with Condominiums and for which a
separate Public Report has been issued by the California Department of Real Estate.
Section 46. Private Drives. The term "Private Drives" shall mean and refer to
the private access drives providing access to and through the Project, including the gate facilities
located at the entrance(s) to the Project, which provide access to the Units from the adjacent
public street(s).
Section 47. Project. The term "Project" shall mean and refer to all of the
Covered Property together with all of the Condominiums, the Common Area and all Improve-
ments located upon the Covered Property.
Section 48. Public Report. The term "Public Report" shall mean and refer to a
Final Subdivision Public Report issued by the California Department of Real Estate pursuant to
the California Subdivided Lands Law.
Section 49. Recreational Amenities. The term "Recreational Amenities" shall
mean and refer to those components of the Association Common Area designed for recreational
lli:a C&R s.ver. 14 1U
purposes. The Recreational Amenities in the Project may include, without limitation, the
Iliklin
following:
(a) Swimming pools located throughout the Project, including one or
more pools which is/are part of the Clubhouse;
(b) The Recreational Amenities located at the Clubhouse, including,
but not limited to, a grill or restaurant, fitness facilities, meeting areas, spas, and related
Improvements; and
(c)
Walking trails. �►
Section 50. Management Services Desk. The term "Management Services
Desk" shall mean and refer to the management services desk and ancillary facilities located in
the Clubhouse as described and depicted in attached Exhibit "D."
Section 51. Rental Program Facilities. The term "Rental Program Facilities"
shall mean and refer to those facilities in the Project reasonably required for conducting the
Resort Rental Program, as designated by Declarant, which facilities may include, without
limitation, the Management Services Desk, bathroom facilities, linen and equipment closets and
storage areas located in various areas of the Project, and cable/data line(s) and appurtenant
improvements running between the Management Services Desk, Units in the Project, and the La
Quinta Resort & CIubTM located to the southeast of the Project.
Section 52. Resort Rental Program. The term "Resort Rental Program" shall
mean and refer to the rental program described in Article XXI of this Declaration.
Section 53. Separate Interest The term "Separate Interest" shall mean and
refer to an individual Unit. The estate in a Separate Interest may be a fee, a life estate, an estate
for years, or any combination thereof.
Section 54. Supplemental Declaration. The term "Supplemental Declaration"
shall mean and refer to those declarations of covenants, conditions and restrictions, or similar
instruments, annexing additional property, extending the plan of this Declaration to such
additional property as provided in Article XVII of this Declaration entitled "INTEGRATED
NATURE OF THE COVERED PROPERTY," A Supplemental Declaration may also (i) impose
additional covenants, conditions and restrictions on such additional property, (ii) supplement any
of the provisions of the Governing Documents regarding the obligations of the Association, or
(iii) make corrections to any of the provisions of the Governing Documents or the Condominium
Plan.
Section 55. Transient Occupancy Tax or TOT. The teen "Transient
Occupancy Tax" or "TOT" shall mean and refer to the transient occupancy tax imposed by the
City or other governmental agency with jurisdiction in connection with short-term rentals of
Units.
I)EU;C C&R's..ver. t 4 1 i
Section 56. Unit. The term "Unit" shall mean and refer to those elements of a
Condominium excluding rights in the Common Areas, as more particularly described in the
recorded Condominium Plan applicable to the Unit. A Unit is a "Separate Interest" as defined in
Section 1351(1)(2) of the California Civil Code. A Unit consists of a separate interest in space as
described in the Condominium Plan, the physical boundaries of which consist of the interior
unfinished surfaces of the perimeter walls, floors, ceilings, windows and doors of such Unit. In
this regard, a Unit consists of all those separate interests in space shown and identified on the
Condominium Plan which describes the Unit as being part of such Unit, and may include,
without limitation, the following: (a) "Garage Air Space" consisting of that portion of a Unit
designated for use as a garage and identified as such on the Condominium Plan, and (b)
"Residential Air Space" consisting of that portion of the Unit designated for use as a residence
and identified on the Condominium Plan by a Unit number. Each Unit includes all
Improvements situated within its boundaries, including, but not limited to, interior walls (except
interior bearing walls), appliances, cabinets, interior doors, the fire box of any fireplace located
in the Unit, and electrical, heating, plumbing and other utility fixtures. The following are not
part of any Unit: bearing walls, columns, floors, ceilings, roofs and foundations; as well as
central HVAC and other central services, pipes, ducts, flues, chutes, conduits, wires and other
utility installations, wherever located outside of the Unit, except the openings, outlets or other
portions thereof when located in the Unit. Any utility fixtures or systems that are located
partially within a Unit and partially in the Common Area, such as telephone wiring, electrical
outlets and HVAC systems, and that exclusively serve such Unit, are Exclusive Use Common
Area appurtenant to such Unit. Areas of a Condominium Building (such as within a dropped
ceiling) that contain utilities or systems that serve two (2) or more Units are Building Common
Area and not part of the Unit. In interpreting deeds and the Condominium Plan for a Phase, the
then existing physical boundaries of a Unit, whether in. its original state or reconstructed in
substantial conformance with the original Condominium Plan therefor, shall be conclusively
presumed to be its boundaries, rather than the metes and bounds (or other description) expressed
in the deed or Condominium Plan, regardless of settling or lateral movement and regardless of
minor variances between boundaries shown on the Condominium Plan or deed and the actual
boundaries of the Unit. Some Units in the Project are described as "Lock -Off Units," which can
be used as a single dwelling, but a portion of which may be locked off from the balance of the
Unit and used as a separate dwelling or rental unit. Each Unit shall have appurtenant to it non-
exclusive rights for ingress, egress and support through the Common Area subject to the rights of
each Owner and any Exclusive Use Common Area appurtenant to that Owner's Unit.
\-‘0
DEOiCC&.R1.ver.14 1 2
ARTICLE II
CREATION OF CONDOMINIUMS
(11
Section 1. Designation of Condominiums. Declarant, in order to establisS
plan of condominium ownership for the Project, hereby divides the first Phase of the Project into
the following.
(a) Thirty-six (36) designated and legally described Units, which are
shown, defined and described on the recorded Condominium Plan for Phase 1 of the Project;
(b) The Association Common Area consisting of the remainder of the
Project in Phase I, excepting the "Units" and the "Building Common Area" as shown on the
Condominium Plan for Phase l; and
(c) The Building Common Area as shown on the Condominium Plan
for Phase I.
Section 2. Interest in Common Area. Acquisition of title to a Condominium
shall also include the right to use and enjoy the Association Common Areas and the Recreational
Amenities thereon (subject to restrictions as may be set forth herein or in the Association Rules),
including non-exclusive rights of ingress, egress and support, if necessary, through the
Association Common Areas. Each conveyance of a Condominium, whether voluntary or
involuntary, shall also convey an undivided fractional interest as tenant in common in the
Building Common Area of the Condominium Building in which the associated Unit is located.
In addition, Owners of certain Condominiums may receive the exclusive right of use and
occupancy of a portion of the Common Area designated as Exclusive Use Common Area. Any
conveyance, encumbrance, judicial sale, or other voluntary or involuntary transfer of an
individual interest in the Common Area by an Owner is void unless the Unit to which that
interest is allocated is also transferred therewith. Each conveyance of a Unit shall include the
rights described in this Declaration and in the Condominium Plan which describes such Unit,
even though the conveyance document may omit reference to the interest in the Comrxron Area.
Section 3. Conveyance of Association Common Area to Association. Prior to
or concurrent with the first conveyance of a Unit within a Phase to an Owner, Declarant shall
convey, in fee or easement, any Association Common Area associated with that Phase to the
Association. Neither Declarant nor any related party shall retain an ownership interest in or have
any other easements in, or rights to, any of the facilities or Corrunon Area in the Project, except
(a) the rights and/or easements of Declarant and/or the rights of any manager of the Clubhouse
under contract with Declarant or the Association, as described in Article XX of this Declaration
entitled "CLUBHOUSE", (b) the rights and/or easements of Declarant and/or the rights of the
Operator of the Resort Rental Program, as described in Article XXI of this Declaration entitled
"RESORT RENTAL PROGRAM", and (c) any other rights or easements of Declarant expressly
set forth in this Declaration or in any of the Governing Documents, Any and all amenities and
facilities which are part of the Association Common Area, including, without limitation, parking
and Recreational Amenities, shall be owned by the Association, in fee or by easement, and shall
DEO.CC&R's.ver.1-1 13
not be subject to a lease between the Association and any other party, except as otherwise set
forth herein.
IP")
Section 4. . Project Overview. Declarant intends to develop the Project in
seventeen (17) Phases, with thirty-six (36) Units planned in the first Phase as set forth in attached
Exhibit "A," and two hundred and forty-four (244) Units planned in the subsequent Phases, for a
total of two hundred and eighty (280) Units in the fiilly developed Project. The development of
the Project will be consistent with any overall development plan submitted to and approved by
the California Department of Real Estate, and, if applicable, the United States Department of
Veterans Affairs ("VA") and/or the Federal Housing Administration ("FHA"). There is no
guarantee that all Phases will be completed or that the sequence of the phasing will occur as
planned, Declarant reserves the right to change the number of Units and/or the product size, type
or design of the Units in subsequent Phases, subject to the approval of the California Department
of Real Estate, if required.
(6*
DEO. CC&R's.ver.14 1 4
ARTICLE III
RIGHTS OF ENJOYMENT
(11
Section 1. Members' Ri ht of Eno ment. Every Member of the AssociatS
shall have a nonexclusive easement and right of use and enjoyment of the Association Common
Area (except in the Exclusive Use Common Area appurtenant to Units owned by other
Members), including the right of ingress, egress, and support (if necessary) in, to, and throughout
the Association Common Area, which shall be appurtenant to and pass with title to each
Condominium, subject to all of the easements, covenants, conditions, restrictions and other
provisions contained in this Declaration, including, without limitation, the following:
(a) The right of the Association to reasonably limit the number of
invitees of an Owner or a renter using the Recreational Amenities situated within the Association
Common Area. Any such limitations or restrictions shall be uniform, shall not discriminate
between Owners and renters, and shall be set forth in the Association Rules;
(b) The right of the Association to establish uniform rules and
regulations pertaining to the use of the Association Common Area and the Recreational
Amenities;
_
(c) The right of the Association to levy a reasonable charge for the use
of any Recreational Amenities located on the Association Common Area;
(d) The right of the Association to rent the Clubhouse or a portion
thereof to a third party for particular events;
(e) The right of the Association, upon the vote or written assent of
two-thirds (2/3) of the voting power of each class of Members, to borrow money for the purpose
of improving the Association Common Area and any Improvements thereon (subject to the
written consent of Declarant during the Declarant's Consent Period and further subject to the
rights of Institutional Holders described in Article XIII entitled "RIGHTS OF INSTITUTIONAL
HOLDERS") and to mortgage, pledge, deed in trust, or hypothecate any or all of its real or
personal property as security for money borrowed or debts incurred;
(i) Subject to the rights . of _Institutional Holders described in
Article XIII and further subject to the written consent of the Declarant during the Declarant's
Consent Period, the right of the Association to dedicate, release, alienate, transfer or assign an
interest in the Association Common Area to any public agency, authority, utility or other person
for such purposes and subject to such conditions as may be agreed to by the Members. No such
dedication, release, alienation, transfer or assignment shall be effective unless an instrument is
signed by Members entitled to cast at least a majority of each class of the voting power of the
Association agreeing to such dedication, release, alienation or transfer has been recorded;
(g) The rights and reservations of Declarant as set forth in this
Declaration, including, without limitation, the right of Declarant, its sales agents, representatives
and prospective purchasers, to the nonexclusive use of the Association Common Area, without
DEO; CC&R's.vcr.14
tti
cost, for access, ingress, egress, use and enjoyment, in order to market and sell Condominiums,
until the close of escrow for the sale of all of the Condominiums in the Project; provided,
however, that such use shall not unreasonably interfere with the rights of enjoyment of the other
Owners, and further provided that such right of use will expire pursuant to the time limitation
specified in Section 14 of Article XVI below entitled "OWNERSHIP AND EASEMENTS";
(h) The right of the Association to suspend the rights and easements of
use and enjoyment of the Association Corrunon Area (excepting any portion of the Association
Common Area required to be used for access to the Member's Unit), of any Member, and the
persons deriving such rights and easements from any Member, for any period during which the
payment of any Assessment against such Member and his or her Condominium remains
delinquent; and, after Notice and Hearing with an opportunity to be heard (satisfying the
minimum requirements of Section 7341 of the California Corporations Code), to impose
monetary penalties, to temporarily suspend an Owner's rights (and those claiming under the
Owner) as a Member of the Association, or other appropriate discipline as determined by the
Board, for any violation of the Governing Documents, it being understood that any suspension
for either nonpayment of any Assessment or violation of the Governing Documents shall not
constitute a waiver or discharge of the Member's obligation to pay Assessments or comply with
the Governing Documents; r j
(i) The right of the Association (subject to the written consent of
Declarant during the Declarant's Consent Period), acting through the Board, to grant concessions
for grills, snack bars and other commercial activities relating to the use and enjoyment of the
Association Common Area by the Members, provided that any such contract shall be subject to
the restrictions on contracts described elsewhere in this Declaration and in the Bylaws;
(j) The right of the Declarant to enter into management or operation
agreements, licenses, easements, leases or other agreements relating to the management,
operation and use of portions of the Common Area, including, without limitation, agreements for
management, operation and use of the Clubhouse and Resort Rental Program, and subject to the
operation of the Clubhouse and Resort Rental Program under any such agreements, as described
in Articles XX and XXX of this Declaration or as approved by the California Department of Real
Estate, and
(k) The right of the Association to assign, license or otherwise
designate and control parking within the parking areas of the Project and to promulgate rules and
regulations to control parking in a manner consistent with this Declaration.
Section 2. Delegation of Use. Any Member may delegate such Member's
right to the use and enjoyment of the Common Area to the members of his or her family, or the
occupants or renters who reside in his or her Condominium, subject to the Association Rules.
Section 3. Waiver of Use. No Member may exempt himself or herself from
personal liability for assessments duly levied by the Association, or release his or her
Condominium from the liens, charges and other provisions of the Governing Documents, by
waiver of the use and enjoyment of the Association Common Area or the abandonrnent of such
Member's Unit.
DEO CC&R's.ver.I4 1b
ARTICLE IV
USE RESTRICTIONS
In addition to all other covenants contained herein, the use of the Project,
including, without limitation, each, Unit and the Common Area, is subject to the following:
Section 1. Residential Use. Units shall be used for residential purposes only;
provided, however, that (i) a Unit may be used incidentally for a home based office for
professional and administrative occupations without external evidence thereof, so long as such
use is in conformance with local governmental ordinances, causes no associated pedestrian or
vehicular traffic, and is merely incidental to the use of the Unit as a single-family residence; (ii) a
Unit may be rented as described in this Declaration; and (iii) subject to the time limitation
described in Article XVI, Section 13 of this Declaration, Unit(s) may be used by Declarant for
such temporary uses as shall be permitted by Declarant while the Project is being developed and
Units are being sold.
Section 2. Commercial Use. Except as otherwise provided in this
Declaration, including, without limitation, Section 1 above, Section 14 of Article XVI, Article
XX and Article XXI of this Declaration, no part of the Project shall be used or caused, allowed,
or authorized to be used, in any way, directly or indirectly, for business, commercial,
manufacturing, mercantile, storing, vending, or other such non-residential purposes; provided,
however, that the Association shall have the right to provide or authorize such services on the
Association Com non Area as it deems appropriate for the enjoyment of the Association
Common Area for the benefit of the Members.
Section 3. Interior of Units. Subject to any other covenants, conditions and
restrictions related to the interior of Units contained in this Declaration, each Owner shall have
the exclusive right and shall be required to paint, repaint, wax, paper or otherwise refinish and
decorate the inner surface of the walls, ceilings, floors, windows and doors bounding his or her
own Unit and otherwise maintain the Unit in a neat, clean, orderly, safe, sanitary and attractive
condition.
Section 4. Hard Surface Floors. Except for those hard surface floors installed
by Declarant, no Owner shall install any hard surface flooring (including, without limitation, tile
or hardwood floors) or replace any. flooring (other than existing hard surfaces) with any hard
surface flooring in a Unit or Exclusive Use Balcony and/or Exclusive Use Patio unless the prior
written approval of the Architectural Committee has been obtained. As a condition to approving
the installation or replacement of hard surface flooring, the Owner shall submit to the
Architectural Committee a construction drawing and related specifications clearly indicating the
type of flooring to be replaced and installed and the underlaytnent to be provided to mitigate
against impact noises such as footfalls. The drawing must clearly identify all materials, their
composition and thickness.
Section 5. No Obstruction of Common Area. There shall be no obstruction of
the Common Area nor shall anything be stored in the Common Area without the prior written
consent of the Board; provided, however, that personal property and fixtures consistent with the
DEO; cc&R's.vcr. is
use of any Exclusive .Use Common Area may be maintained by Owners upon such Exclusive
Use Common Area, subject to such limitations as are set forth in the Association Rules. Nothing
shall be altered or constructed in or upon or removed from the Common Area, except upon the
prior written consent of the Architectural Committee. Any drainage easement area within the
Common Area as depicted in the recorded subdivision map for the Project shall be kept free of
improvements and obstructions by the Association.
Section 6. Signs. No sign, poster, billboard, advertising device or other
display or exterior decoration of any kind shall be displayed so as to be visible from any portion
of the Project without the written approval of the Architectural Committee, except such signs,
posters, billboards, decorations, advertising devices and other displays as may be used by
Declarant in connection with the development of the Project and sale of Condominiums, subject
to the time limitations set forth in Article XVI, Section 13. Notwithstanding the foregoing, the
Association shall not proscribe or prohibit the following: (i) signs advertising Condominiums
"for sale" or "for rent" or "for exchange"(which signs shall be of customary and reasonable
dimensions and of a professional type and dignified appearance as determined by the
Architectural Committee), which may be displayed on or from a Unit advertising it for sale, lease
or exchange; (ii) non-commercial signs, posters, flags or banners located on or in a Unit, except
for such signs, posters, flags or banners which constitute a potential public health or safety
violation, as determined by the Board, or if the posting of such signs, posters, flags or banners
would violate a local, state or federal law. In no case shall the size of any permitted sign or
poster exceed nine (9) square feet nor shall the size of any permitted flag or banner exceed more
than fifteen (15) square feet; provided, however, that temporary signs advertising a Unit for sale,
lease or exchange in excess of six square feet will require a sign permit pursuant to the municipal
code of the City. If at the time of any such desired use, the Association is providing "for sale" or
"for rent" signs for the use of Owners which comply with the requirements of this Section and
applicable state, local or federal laws, the sign provided by the Association shall be used.
Section 7. Animals. No insects or animals of any kind shall be raised, bred or
kept on the Project except that no more than a total of two (2) dogs, cats or other common
household pets may be kept by an Owner, provided that they are not kept, bred or maintained, for
any commercial purpose, or in violation of any other provision of this Declaration and/or the
Association Rules. Renters may keep such permitted animals so long as the Owner of the rented
Unit permits the keeping of said animal or animals by renters in the Project. The Association,
acting through the Board of Directors, shall have the right to prohibit maintenance of any animal
in any Unit which constitutes, in 'the opinion of the Board, a nuisance to other Owners or
occupants within the Project. Animals belonging to Owners, their family members, invitees or
renters within the Project must be either kept within a Unit or, if outside of a Unit, on a leash or
bridle being held by a person capable of controlling the animal. Animals shall not be left
unattended in any Common Area including, without limitation any Exclusive Use Common
Area. Owners shall be liable to other Owners, their families, invitees and renters for any
unreasonable noise and/or any damage to person or property caused by any animals brought or
kept upon the Project by such Owner or by his or her family members, invitees or renters. It
shall be the
duty and
responsibility of each Ownir (or, if applicable, each family member, invitee
or renter) to clean up after his or her animals. The Association shall have the right to designate,
in the Association Rules, the areas of the Project where animals may be walked.
DEO. CC&R' s.v cr. I 4
i3
Section 8. Structural Alterations. No Owner shall make or cause to be made
any structural alterations or modifications to his or her Unit, or installations located therein,
without the prior written consent of the Architectural Committee and the City. No Owner shall
make or cause to be made any alterations or modifications (including, without limitation,
painting) to any Exclusive Use Common Area or other Common Area without the prior written
consent of the Architectural Committee.
Section 9. Utilities. Each Owner shall be obligated to pay any and all
assessments for sewage, electricity, gas, telephone, cable, water and other utilities, taxes and
other charges assessed individually against his or her Unit.
Section 10. Trash. No rubbish, trash, garbage or other waste material shall be
kept or permitted upon any portion of the Project outside of a Unit, except in sanitary containers
provided by Declarant or the Association. It is anticipated that trash will be collected from a
designated area near each Unit on a regular basis. In any event, however, trash collection
procedures will be governed by the Association Rules.
Section 11. Vehicles. The parking and storage of vehicles in the Project shall
be governed by Section 21 below, Section 14, Article XXII of this Declaration and the
Association Rules. The Association, through any Director or Officer of the Association, the
Managing Agent, or any other person designated by the Board, may have a vehicle wrongfully
parked or parked without authorization removed from the Project under California Vehicle Code
Section 22658.2 (if signs are posted and if the Association is otherwise in compliance with the
provisions of such section) without liability of the Association or its authorized agents to the
owner of the removed vehicle.
Section 12. Rules of Association. Each Owner, invitee, family member, renter
and occupant of a Unit shall comply with the provisions of this Declaration, the Bylaws, the
Association Rules and the decisions of the Association or its duly authorized representatives
which may from time to time be promulgated. Notwithstanding anything to the contrary
contained in this Declaration, Association Rules shall not discriminate between Owners and
renters in the use or enjoyment of the Project. Faihare to comply with any such provisions,
decisions, rules or regulations shall be grounds for an action to recover sums due, for damages,
for injunctive relief, or for any other remedy permitted by law or by the terms of this
Declaration.
Section 13. Conduct in Units and Common Area. No Unit or any portion of
the Common Area shall be occupied or used for any purpose or in any manner which shall cause
either to be uninsurable against loss by fire or the perils of the extended coverage endorsement of
the California Standard Fire Policy form, or cause any policy of insurance to be canceled or
suspended or the company issuing the same to refuse renewal thereof. No Unit shall be used in
such a manner as to obstruct or interfere with the enjoyment of occupants of other Units or annoy
them by unreasonable noises or otherwise, nor shall any nuisance be committed or permitted to
occur in any Unit or upon the. Common Area; provided, however, nothing herein shall be
construed as a limitation on Declarant's rights as set forth in this Declaration.
DEO,CC&R's.vcr,14 1 `9
Section 14. Rental Units.
(a) The rental of Units, and the terms of any rental agreement, shall be
in accordance with and subject in all respects to the provisions of the Governing Documents,
including, without limitation, the applicable City Requirements as described in Article XXII of
this Declaration, and any failure by an Owner or occupant to comply with the terms of such
documents shall be a violation of the covenants, conditions and restrictions contained in this
Declaration. Any rental of a Unit, including any portion of a Lock -Off Unit, shall be subject to
the collection and payment of TOT to the City in accordance with its then applicable ordinance
imposing said tax, the Development Agreement and Article XXII, Section 5 of this Declaration.
(b) All rentals of Units handled by third parties on behalf of Owners
must be handled by properly licensed rental agents. The Association encourages, but does not
require, that the Owners use the on-site rental agent designated under the Resort Rental Program
when renting their Units. The Resort Rental Program will include reservation and housekeeping
services.
(c) Rentals of Units are restricted to thirty (30) consecutive days or
less, and rentals may be as short as one (1) day. The rental agent responsible for each rental shall
be required to collect the TOT on each such rental and forward same to the City in the manner
set forth in the City's then applicable TOT Ordinance.
(d) All rentals must be reported to the Association or its designated
agent or administrator under the Rental Tracking System (as described in Article XXII, Section 6
of this Declaration) no later than the date of arrival of the applicable renter. The information
required to be reported shall include the naive of the renter, the Unit rented, the dates of the
rental, the rental payment, the name of the applicable rental agent, and any other information
reasonably requested by the Association or the administrator of the Rental Tracking System.
Said information shall be reported to the City by the Association on a monthly basis to aid the
City in assuring the proper collection of TOT.
(e) The rental of the Units, and the terms of any rental agreement,
shall be in compliance with state and local laws and ordinances, including, without limitation,
any restrictions on the modification of Units.
(f) Declarant makes no representations as to whether any
modifications to Units, Condominium Buildings or Cornrnon Area are required before Units may
be placed into a rental program or whether other legal requirements apply to the renting of a
Unit. Each Owner should perform his or her own investigations in that regard.
(g) Any amendment to any of the Governing Documents granting the
Association or the Board the right to approve or in any manner screen renters, or to restrict
renting of Units, mist first be approved by the majority of the Board and by the affirmative
assent or vote of eighty percent (80%) of the voting power of the Class A Members of the
Association, and consented to in writing by the Declarant during the Declarant's Consent Period.
DEUiCC&R's.vcr,14 2`)
Section 1 S. Antennas. No Owner shall install any antenna, satellite dish, or
other over -the -air receiving device 'on any real property which such Owner is not entitled to
exclusively use or control, as provided in Title 47 U.S.C. §§ 1 et seq., 47 CFR § 1.4000 and any
other applicable laws, rules and decisions promulgated with respect thereto and any successor
statutes or laws. And, subject to the requirements of California Civil Code Section 1376, no
television, radio, or other electronic antenna or device of any type, including, without limitation,
a satellite dish, shall hereafter be erected, constructed, placed or permitted to remain on any Unit
or any portion of any Condominium Building unless it was a part of the building as originally
constructed or until it has been approved in writing by the Architectural Committee, or unless it
is fully contained within a Unit and not visible from the exterior of the Unit. Pursuant to City
requirements (as described in Section 17, Article XXII of this Declaration), each Unit is limited
to a single one -meter diameter wall -mounted satellite dish for television and internet needs. The
installation of any such wall -mounted satellite dish is subject, however, to approval by the
Architectural Committee. The Architectural Conunittee may adopt reasonable restrictions on
installation and use of antennas or satellite dishes in order to address any safety concerns or to
minimize visibility of such antennas or satellite dishes from other Units or from the Common
Area. Such restrictions may designate one or more preferred installation locations, or require
camouflage such as paint (subject to the antenna manufacturer's recommendations) or screening
vegetation or other Improvements. However, no restriction imposed by the. Architectural
Committee may (i) unreasonably delay or prevent the installation, maintenance or use of an
otherwise acceptable antenna or satellite dish, or (ii) unreasonably increase the cost of
installation, maintenance or use of same.
Section 16. Window Covers. All window coverings visible from the exterior
of the Condominium Building within which the Unit is situated shall have a white backing as
viewed from outside the Unit or shall be of a neutral color harmonious with and not in conflict
with the color scheme of the exterior wall surface of the Condominium Building. No window
shall be covered with newspaper, aluminum foil, reflective film or unauthorized material.
Section 17. View Obstructions. Each Owner acknowledges that (i) there are
no protected views in the Project, and no Unit is assured the existence or unobstructed
continuation of any particular view, and (ii) any construction, landscaping or other installation of
Improvements by Declarant, the Association or owners of other property in the vicinity of the
Project may impair the view from any Unit, and the Owners consent to such view impairment.
Section 18. Water Beds and Limitations On Size of Aquariums. No water beds
shall be permitted in any Unit and no Owner shall maintain in his or her Unit any aquarium or
other container holding more than thirty (30) gallons of water unless the prior written approval of
the Board has been obtained. Each Owner acknowledges that substantial damage to other Units
and/or Common Area may occur as a result of a violation of this restriction, for which such
violating Owner will be responsible.
Section 19. Toxic or Noxious Matter, No person shall discharge into the
Project's sewer system or storm drain any toxic or noxious matter in such concentrations as to be
detrimental to or endanger the public health, safety, welfare, violate any law, sdbjeet any Owner
DEO.CC&R's.vCr.14 )1.
or the Association to liability under state and federal law for any clean-up or cause injury or
damage to neighboring property or business elsewhere on the Project.
Section 20. No Outside Drying and Laundering. No exterior clothes lines shall
be erected or maintained within the Project, and there shall be no hanging, drying or laundering
of clothes, towels or any other items on or from any Exclusive Use Common Area, Building
Conaxnon Area, or any other Common Area in the Project.
Section 21. Garages/Parking/Golf Carts. For those Units which include a
garage, either as a part of the Unit or an Exclusive Use Garage, Owners, occupants and renters of
those Units shall park their vehicles in the garage and the garage door shall be kept closed except
when entering or exiting the garage. For those Units which include an Exclusive Use Parking
Space, Owners, occupants and renters of those Units shall park their vehicles in such Exclusive
Use Parking Space. Except as set forth above, all vehicles and golf carts shall be parked only in
those areas designated for such parking from time to time by the Association, or as set forth in
the Association Rules.
(6*
Db(}CCIs:k's.vcr. i4
ARTICLE V
MEMBERSHIP AND VOTING RIGHTS
Section 1. Membership. Every Owner shall automatically, upon becoming
the Owner of a Condominium, be a Member of the Association, and shall remain a Member
thereof until his or her ownership ceases for any reason, at which time such Owner's
membership in the Association shall also automatically cease. For each Condominium there
shall be on file with the Association an address of record for the Owner, if different from the
Unit address, and a phone number in case of emergency, all of which shall be kept current by the
Owner. Ownership of a Condominium shall be the sole qualification for membership in the
Association; provided, however, that a Member's voting rights or privileges to use the Common
Area, or both, may be regulated or suspended as provided in the Governing Documents. All
memberships shall be appurtenant to the Condominium conveyed, and, with the exception of
Declarant, a person or entity shall be deemed an Owner of a Condominium only upon
recordation of a deed, contract of sale or other document conveying the Condominium to such
Owner.
Section 2. Transfer. The membership held by any Owner shall not be
transferred, pledged or alienated in any way, except upon the conveyance or encumbrance of his
or her Condominium, and then only to the transferee or Mortgage holder of the Condominium.
Any attempt to make a prohibited transfer is void, and will not be reflected upon the books and
records of the Association. Any conveyance, encumbrance, judicial sale, or other voluntary or
involuntary transfer of a Condominium also includes the Owner's membership interest in the
Association, and any transfer of title shall operate automatically to transfer the appurtenant
membership right in the Association to the new Owner. Any selling Owner shall notify the
Association of the sale of the Condominium, and the Association shall update the Association's
records accordingly. In the event a selling Owner fails or refuses to so notify the Association, the
Board may record the transfer of membership upon the books of the Association upon receipt of
proof of transfer of title provided by the new Owner or otherwise obtained by the Association.
In addition to the transfer fee imposed pursuant to Article VI of Section 17 of this Declaration,
the Association may impose reasonable fees against the selling Owner for the actual costs of (a)
transferring the selling Owner's membership on the books of. the Association, and/or (b)
providing documentation to the selling Owner as required in Article XIX, Section 7 of this
Declaration. Notwithstanding the foregoing, Declarant's Class C membership may not be
transferred except to a successor to Declarant's rights to all or a portion of the Project. Transfer
of Declarant's Class C membership shall be evidenced by the recordation in the Office of the
County Recorder of Riverside County of an Assignment of Declarant's rights which specifically
assigns some or all of such Declarant's Class C membership.
Section 3. Three Classes of Membership. The Association shall have three
(3) classes of voting membership:
Class A. Class A Members shall he those Owners described in Section 1
above, with the exception of Declarant for so long as there exists a Class B membership. Each
Class A Member shall be entitled to one (1) vote for each Condominium owned. When more
DGO:'CC&R's.v::r.14 23
than one (I) person or entity holds an interest in any Condominium, all such persons or entities
shall be Members, and the vote for such Condominium shall be exercised as they among
themselves determine, but in no event shall more than one (1) vote be cast with respect to any
Condominium. If one (1) Owner casts the vote attributed to a Condominium, the vote shall
conclusively bind all the Owners of that Condominium. If more than one (1) Owner casts the
vote attributed to a Condominium, the votes cast by such Owners shall not be counted and shall
be considered void.
Class B. The Class B Member shall be Declarant. The Class B Member
shall be entitled to three (3) votes for each Condominium owned in any Phase of the Project;
provided that the Class B membership shall cease and be converted to Class A membership on
the happening of either of the following events, whichever occurs earlier:
(a) The date on which ninety-five percent (95%) of the Condominiums
in all Phases of the Project are conveyed to members of the public; or
(b) On the eighth (811) anniversary of the first conveyance of a
Condominium in the initial Phase of the Project.
Class C. The Class C Member shall be Declarant. The CIass C
membership shall not be considered a part of the voting power of the Association, and Declarant
shall not be entitled to exercise any Class C votes except for the purpose of electing a majority of
the members of the Board. Class C membership shall expire at the same time that Class B
membership expires. During the period in which Class C membership exists, Declarant shall be
entitled to elect a majority of the members of the Board, and, upon death, resignation or removal
of any such Board member, shall be entitled to replace any member of the Board initially elected
by Declarant using its Class C membership.
Section 4. Required Vote. With the exception of the action referred to in
Article XIV entitled "ENFORCEMENT OP BONDED OBLIGATIONS," and the action
referred to in Article XVIII, Section 2 of this Declaration, no provision of this Declaration which
requires the approval of a prescribed majority of the voting power of Members other than
Declarant for action to be taken by the Association is intended to preclude Declarant from
casting votes attributable to the Separate Interests in the Project owned by Declarant.
Notwithstanding anything to the contrary contained elsewhere in this Declaration, any action by
the Association which must have the approval of the membership (except for the action referred
to in Article XIV entitled "ENFORCEMENT OF BONDED OBLIGATIONS," and the action
referred to in Article XVIII, Section 2) shall require the vote or written assent of a bare majority
of the Class B voting power as well as the vote or written assent of a prescribed majority of the
Class A voting power during the period of time that there are two (2) or more outstanding classes
of membership. Except for the provisions of the Article entitled "ENFORCEMENT OF
BONDED OBLIGATIONS," if there has been a conversion of Class B to Class A membership,
any action of the Association which must have the approval of the Members before being
undertaken shall require the vote or written assent of a bare majority of the total voting power of
the Association as well as the vote or written assent of the prescribed majority of the total voting
power of Members other than Declarant.
DLUX. Lxk's.ver.1 4 24
Section 5. Special Class A Voting Rights. From the first election of Directors
and thereafter for as long as a majority of the voting power of the Association resides in
Declarant, or as long as there are two (2) or more classes of membership in the Association, not
less than two (2) of the incumbents on the Board of Directors shall have been elected solely by
votes of Members other than Declarant. A Director who has been elected solely by votes of
Members other than Declarant may be removed from office prior to the expiration of his or her
term of office only by the vote of at least a simple majority of the voting power residing in
Members other than Declarant. A Director who has been elected or appointed solely by
Declarant may be removed from office only by Declarant.
Section 6. Vesting of Voting Rights. All voting rights which are attributable
to a specific Condominium shall not vest until such time as Regular Assessments (and Special
Assessments, if any) have first commenced for such Condominium pursuant to the terms of this
Declaration.
Section 7. Title 7 Decisions. All members of the Board of Directors who are
a director, officer, employee of Declarant or an independent contractor employed by Declarant
are hereby declared to have a conflict of interest and are hereby expressly prohibited from voting
or participating in any discussions related to any decision whether to file a claim against
Declarant under Title 7, Part 2 of Division 2 of the California Civil Code (Section 895 et. sec.) or
any decision relating to the prosecution or resolution of such claim once it is filed.
CIO
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\"‘(
[JLO,c.c6:k s.Ver.J4
ARTICLE VI
COVENANT FOR MAINTENANCE ASSESSMENTS
Section 1, Covenant to Pay Assessments. Declarant, for each Condominium
owned by Declarant within the Project, hereby covenants and agrees, and each Owner of any
Condominium, by acceptance of a conveyance thereof (whether or not it is expressed in such
conveyance), is deemed to covenant and agree, to pay to the Association: (1) Regular
Assessments or charges, (2) Special Assessments for capital improvements and other purposes
(3) Reimbursement Assessments, (4) Annual Mitigation Fee Assessments, and, if applicable, (5)
Clubhouse Assessments, all such assessments to be established and collected as hereinafter
provided. Each of these assessments, together with interest, late charges and other amounts
described herein, costs of collection and reasonable attorneys' fees, shall also be the personal
obligation of the person who was the Owner of such Condominium at the time the assessment
became due. The personal obligation for delinquent assessments shall not pass to such person's
successors in interest unless expressly assumed by them.
Section 2. Purpose of Assessments. The Association shall levy Regular
Assessments and Special Assessments in sufficient amounts to perform the Association's
obligations under the Governing Documents and the Davis -Stirling Common Interest
Development Act, but shall not impose or collect an assessment or fee that exceeds the amount
reasonably anticipated to be necessary to defray the costs for which it is levied. The assessments
levied by the Association shall be used exclusively to promote the recreation, health, safety and
welfare of the residents of the Project and for the improvement, operation and maintenance of the
Common Area and the Project and the performance of the duties of the Association as set forth
in the Governing Documents.
]
Section 3. Regular Assessments. The amount and time of payment of
Regular Assessments against each Condominium shall be determined by the Board, giving due
consideration to the current maintenance costs and future needs of the Association. Not later
than sixty (60) days prior to the beginning of each fiscal year, the Board shall estimate the total
Common Expenses to be incurred for the upcoming fiscal year, and shall determine the amount
of Regular Assessments to be paid by each Member. Written notice of the amount of the
Regular Assessment for the year shall be sent to each Member, who shall thereafter pay the
Regular Assessment to the Association in monthly installments. Any increase in Regular
Assessments shall be undertaken in compliance with Section 5 of this Article VI.
Section 4. Special Assessments. If the Board determines that the estimated
total amount of funds necessary to defray the Common Expenses of the Association for a given
fiscal year is or will become inadequate to meet expenses for any reason, including, but not
limited to, unanticipated delinquencies, costs of construction, unexpected repairs or replacement
of capital improvements on, damage and destruction or condemnation of, the Common Area, the
Board shall determine the approximate amount necessary to defray such expenses and, if the
amount is approved by a majority vote of the Board and does not exceed five (5%) of the
budgeted gross expenses of the Association, it shall become a Special Assessment; provided,
however, that such limitation shall not apply to Special Assessments levied by the Board to
DE.G.CC&R ,.v,. 4
26
replenish the Association's reserve account as provided in Article VII, Section 7 (a) (3) of the
Bylaws. Except for Special Assessments levied pursuant to Section 7 (a) (3) of the Bylaws, any
1.6
Special Assessment in excess of five' percent (5%) of the budgeted gross expenses of the
Association shall be subject to the limitations set forth in Section 5 below. The Board may, in its
discretion, prorate such Special Assessment over the remaining months of the fiscal year or levy
the assessment immediately against each Unit. Unless exempt from federal or state taxation, all
proceeds from any Special Assessment shall be segregated and deposited into a special account
and shall be used solely for the purpose or purposes for which it was levied, or it shall be
otherwise handled and used in a manner authorized by law or regulations of the Internal Revenue
Service or the California Franchise Tax Board in order to avoid, if possible, its taxation as
income of the Association.
Section 5. Increases in Regular and Special Assessments. In the event that
the Board at any time determines that the estimate of total charges for the current year is or will
become inadequate to meet all Common Expenses for any reason, it shall promptly determine the
approximate amount of such inadequacy and issue a supplemental estimate of the Common
Expenses and determine a revised amount of Regular Assessments for each Member and the date
or dates when due. However, annual increases in Regular Assessments for any fiscal year shall
not be imposed unless (a) the Board has prepared and distributed, not less than forty-five (45)
days nor more than sixty (60) days prior to the beginning of the fiscal year of the Association, a
copy of the pro forma operating budget (as described in Article VII, Section 7 (a) of the Bylaws)
with respect to that fiscal year, or (b) the 13oard has obtained the approval of Owners constituting
a quorum, casting a majority of the votes, in person or by proxy, at a meeting or election of the
Association. In any event, except as provided below, Regular Assessments may not be increased
by more than twenty percent (20%) over the Regular Assessment for the preceding fiscal year
and Special Assessments imposed or increased may not exceed in the aggregate five percent
(5%) of the budgeted gross expenses of the Association for the current fiscal year, without
approval by the vote or written assent of Owners, constituting a quorum, casting a majority of the
votes in. person or by proxy at a meeting or election of the Association. Notice and quorum for
any meeting called to approve the imposition of Special Assessments or an increase in Regular
or Special Assessments in excess of the percentage limitations described above (or in connection
with any increase for which a pro forma operating budget was not prepared and distributed as set
forth above) shall be conducted in accordance with Sections 4 and 6 of Article IV of the Bylaws.
For purposes of this Section, "quorum" means more than fifty percent (50%) of the Owners.
Any meeting or election of the Association for purposes of complying with this Section shall be
conducted in accordance with Chapter 5 (commencing with Section 7510) of Part 3, Division 2
of Title 1 of the Corporations Code (Sections 7510 through 7527) and 7613 of the Corporations
Code.
The Association shall provide notice by first-class mail to the Owners of any
Special Assessment or increase in Regular Assessments or Special Assessments, not less than
thirty (30) nor more than sixty (60) days prior to the date the increased Assessment becomes due.
Notwithstanding any other provision contained in this Section, the percentage
limitations for Special Assessments and increases in Regular and Special Assessments described
DE0,01sd:R's.ver. i4
above will not limit assessment increases necessary for emergency situations. An "emergency
situation" includes any one of the following:
(a)
An extraordinary expense required by an order of a court;(.1. 4r\
(b) An extraordinary expense necessary to repair or maintain the
Project or any part of it for which the Association is responsible where a threat to personal safety
is discovered; or
(c) An extraordinary expense necessary to repair or maintain the
Project or any part of it for which the Association is responsible that could not have been
reasonably foreseen by the Board in preparing and distributing its pro forma operating budget of
the Association as described in Article VII, Section 7 (a) of the Bylaws. Prior to the imposition
or collection of an assessment under this subparagraph (c), the Board shall adopt a resolution
containing written findings regarding the necessity of the extraordinary expense and why such
expense was not or could not have been reasonably foreseen in the budgeting process, which
resolution shall be distributed to the Members with the notice of such assessment.
The provisions of this Section are in accordance with California Civil Code
Section 1366 as currently in effect, and the Board, prior to imposing a Special Assessment or any
increase in Regular Assessments and Special Assessments, shall comply with the provisions of
California Civil Code Section 1366 or any successor statute then in effect.
Section 6. Reimbursement Assessments. The Association may Ievy a
Reimbursement Assessment against any Owner who fails to comply with the provisions of the
Governing Documents, including, without limitation, this Declaration, the determinations of the
Architectural Committee, the Articles or Bylaws, or any Association Rule, if such failure results
in the expenditure of' monies by the Association in carrying out its functions hereunder or for
purposes of collecting any fines which may be levied by the Association. Such assessment shall
also be for the purpose of reimbursing the Association for any costs incurred by the Association
on behalf of an individual Owner. A Reimbursement Assessment shall be due and payable to the
Association when levied but may not become a lien as provided by Section 15 (b) of this Article
VI which could otherwise be enforced by a sale of the Owner's Condominium.
Section 7. Annual Mitigation Fee Assessments. The Association shall levy
Annual Mitigation Fee Assessments in sufficient amounts to perforin the Association's
obligations under the Development Agreement, as described in Article XXII, Section 2 of this
Declaration.
Section 8. Clubhouse Assessments. If applicable, the Association shall levy
Clubhouse Assessments in sufficient amounts to perforni the Association's obligations pursuant
to any lease or contract approved by the California Department of Real Estate relating to the
operation, maintenance, management, repair and/or replacement of the Clubhouse prior to its
conveyance to the Association. In the event that the Board at any time determines that the
amount of the Clubhouse Assessments then being charged for the current year is or will become
inadequate to meet the Association's obligations pursuant to any lease or contract described in
the foregoing sentence, it may increase the amount of the Clubhouse Assessment in accordance
with the requirements of such approved lease or contract, or any amendment thereto approved by
the California Department of Real Estate. In any event, Clubhouse Assessments in any fiscal
year may not be increased by more than twenty percent (20%) over the Clubhouse Assessments
for the preceding fiscal year.
Section 9. Allocation of Assessments to Units.
(a) Except as provided in subparagraph (b) belo�Regular
Assessments and Special Assessments shall be fixed at a uniform rate for all Condominiums
(including those owned by Declarant) and shall be levied against each Owner according to the
ratio of the number of Condominiums owned by the Owner to the total number of
Condominiums subject to assessment.
(b) A Special Assessment against Owners to raise funds for the
rebuilding or major repair of the Condominium Building(s) shall be levied upon the basis of the
ratio of the square footage of the floor area of the Unit to be assessed to the total square footage
of floor area of all Units to be assessed.
Section 10. Date of Commencement of Regular Assessments: Due Dates. The
Regular Assessments described herein shall commence as to all Condominiums in the initial
Phase (including those owned by Declarant) on the first day of the month following the
conveyance of the first Condominium by Declarant to an Owner under authority of a Public
Report; provided, however, that Regular Assessments as to Condominiums in subsequent Phases
shall commence on the first day of the month following conveyance of the first Condominium in
such subsequent annexed Phase by Declarant to an Owner under authority of a Public Report.
With respect to any Phase of the Project, the Association's duty to maintain that Phase shall
commence when Regular Assessments on that Phase commence.
Section 11. Certificate of Payment. The Association shall, within ten (10) days
after receipt of written request, furnish to any Member liable for assessments a certificate in
writing signed by an Officer or authorized agent of the Association, stating (as of the date the
statement is issued) whether assessments for a specific Condominium have been paid and the
amount of unpaid Assessments, if any, including penalties and attorneys' fees, which are or may
be made a lien upon the Member's Condominium. A reasonable charge of not less than Fifteen
Dollars ($15.00), and not more than the reasonable cost of preparing the certificate (as
determined by the Board), may be collected for the issuance of such a certificate. Such
certificates shall be conclusive evidence of payment of any assessment therein stated to have
been paid as to all third parties relying thereon, but shall not relieve any Owner of liability for
assessments not in fact paid.
Section 12. No Offsets. All Assessments shall be payable in the amount
specified and no offset against such amount shall be permitted for any reason, including, without
limitation, a claim that the Association is not properly exercising its duties and powers as
provided in this Declaration.
Section 13. Reserves. Regular Assessments shall include reasonable amounts
as determined by the Board collected as reserves for the future periodic maintenance, repair,
29
restoration and/or replacement of major components of the Common Area which the Association
is obligated to repair, restore, replace, or maintain, and for which the reserve fund was
established, and for litigation involving these purposes. All amounts collected as reserves,
whether pursuant to this Section or otherwise, shall be (a) collected by regular, scheduled
monthly payments included in Regular Assessments rather than by large special assessments,
and (b) deposited by the Board in a separate bank account to be held in trust for the purposes for
which they are collected and are to be segregated from and not commingled with any other funds
of the Association. Such reserves shall be deemed a contribution to the capital account of the
Association by the Members. The Board's responsibilities in regard to the reserve funds are
further described in Article VII, Sections 7, 8 and 9 of the Bylaws.
Section 14. Pledge of Assessment Rights. The Association shall have the
power to pledge future assessments as security to obtain funds to repay a debt of the Association;
provided, however, that any such pledge shall require the prior affirmative vote in person or by
proxy or written assent of not less than sixty-seven percent (67%) of the Class A members at a
meeting duly called and noticed pursuant to the provisions of the Bylaws dealing with Special
Meetings of Members, and shall require the written consent of. the Declarant during the
Declarant Consent Period. The Association may Ievy Special Assessments against the Members
to obtain such funds. Upon the failure of any Member to pay such a Special Assessment when
due, the Association may exercise all of its rights, including, without limitation, the right to
foreclose its lien, pursuant to the further provisions of this Declaration.
Section 15. Effect of Nonpayment of Assessments: Remedies of the
Association. Each Owner, upon becoming an Owner of any Condominium, covenants and
agrees to pay to the Association all of the assessments provided for in this Declaration and
fitrther agrees to the enforcement of all such assessments in the manner herein specified.
Assessments are delinquent fifteen (15) days after they become due. If an assessment is
delinquent, the Association may recover all of the following:
(1) Reasonable costs incurred in collecting the delinquent assessment,
including, without limitation, reasonable attorneys' fees;
(2) A late charge not exceeding ten percent (10%) of the delinquent
assessment or Ten Dollars ($10.00) whichever is greater (a late charge may not be imposed more
than once on any single delinquent payment, but it shall not eliminate or supersede any. charges
imposed on prior delinquent payments); and
(3) Interest on the above sums, including, without limitation, the amount of
the delinquent assessment, reasonable fees and costs of collection, reasonable attorneys' fees and
late charges, at an annual interest rate of twelve percent (12%), commencing thirty (30) days
after the assessment becomes due.
Any Assessment and any late charges, reasonable fees and costs of collection,
reasonable attorneys' fees, and interest, shall be a debt of the Owner at the tirne the Assessment
or other sums are levied. In addition to any other remedies provided herein or available at law or
in equity, the Board or its authorized representative may enforce the obligations of the Owners to
DEO,CC&z.,..c .:;
30
pay the Assessments provided for in this Declaration by either or both of the following
procedures:
(a) Enforcement by Suit. The Association may commence and pursue
an action against any Owner personally obligated to pay Assessments for such delinquent
Assessments. Any judgment rendered in any such action shall include the amount of the
delinquency, together with interest thereon, late charges, costs of collection, court costs and
reasonable attorneys' fees in such amount as the court may adjudge against the delinquent
Owner. Pursuant to California Civil Code Section 1367(1) (h), suit to recover a money judgment
for unpaid Assessments may be maintained without foreclosing or waiving the lien hereinafter
described. The remedy provided in this paragraph shall be the exclusive mariner of enforcing
payment of delinquent Reimbursement Assessments or Clubhouse Assessments.
(b) Enforcement by Lien. At least thirty (30) days before the
Association may place a lien upon the Separate Interest of an Owner, the Association shall notify
the Owner in writing by certified mail, return receipt requested, of the following in accordance
with Civil Code Section 1367.1:
(i) A general description of the collection and lien
enforcement procedures of the Association and the method of calculation of the amount; a
statement that the Owner has the right to inspect the Association records, and the following
statement in 14 -point boldface type, if printed, or in capital letters if typed: "IMPORTANT
NOTICE: IF YOUR SEPARATE INTEREST IS PLACED IN FORECLOSURE BECAUSE
YOU ARE BEHIND IN YOUR ASSESSMENTS, IT MAY BE SOLD WITHOUT COURT
ACTION";
(7
CTION';7
(ii) .0 An itemized statement of the charges owed by the Owner,
including items on the statement which indicate the amount of any delinquent assessments, the
fees and reasonable costs of collection, reasonable attorney's fees, any late charges, and interest,
if any;
(iii) A statement that the Owner shall not be liable to pay the
charges, interest, and costs of collection, if it is determined the assessment was paid on time to
the Association;
(iv) The right to request a meeting with the Board as provided
in California Civil Code Section 1367.1 (c), which provides, in pertinent part, as follows:
(1) An Owner may dispute the debt noticed by
submitting to the Board a written explanation of the reasons for his or her dispute. The Board
shall respond in writing to the 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,
and
(2) An Owner may submit a written request to meet
with the Board to discuss a payment plan for the debt noticed. The Association shall provide the
Owner the standards for payment plans, if any exist. The Board shall meet with the .Owner in
t�1 O'CC3n ,,,Nr i.l 31
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, unless there is no
regularly scheduled Board meeting within that time period, in which case the Board may
designate a committee of one or more Members to meet with the Owner; and
(v) A mailing address for overnight payment of assessments.
Any payments toward such debt shall first be applied to the assessments owed,
and only after the assessments owed are paid in full shall such payments be applied to the fees
and costs of collection, attorney's fees, late charges or interest. When an Owner makes a
payment, the Association shall provide a receipt upon the Owner's request. The receipt shall
indicate the date of the payment and the person who received it.
Not less than thirty (30) days after such notice by certified mail has been sent, the
Board may record, or cause to be recorded, in the Recorder's Office of the County, a Notice of
Delinquent Assessment with respect to the Condominium as to which Assessments (other than
Reimbursement Assessments and Clubhouse Assessments) are delinquent. The Notice of
Delinquent Assessment shall set forth a legal description of the Owner's Separate Interest in the
Project, the name of the record owners of that interest, the amount of Assessments which are
delinquent as of the date of recording, together with all reasonable fees and costs of collection,
reasonable attorney's fees, late charges and interest accrued thereon. The Notice of Delinquent
Assessment shall also include the name and address of the trustee authorized by the Association
to enforce the lien by sale through nonjudicial foreclosure proceedings as described below and
shall be signed by the person designated by the Board for that purpose (or if no one is
designated, by the President of the Association). A copy of the recorded Notice of Delinquent
Assessment shall be mailed in the manner set forth in Section 2924b of the California Civil Code
to all record owners of the Owner's interest in the common interest development no later than ten
(10) calendar days after recordation. Immediately upon recordation of a Notice of Delinquent
Assessment, the amounts set forth in said Notice, together with all sums accruing thereon or
becoming due and payable in accordance with this Declaration after the date of recordation of
the Notice, shall constitute a lien in favor of the Association upon the Condominium described in
the Notice of Delinquent Assessment, which lien shall be immediately due and payable.
This lien shall have priority over all liens or claims created subsequent to the
recordation of the Notice of Delinquent Assessment except for liens for real property taxes and
assessments on any Condominium in favor of any governmental assessing unit. After the
expiration of thirty (30) days following the recording of the Notice of Delinquent Assessment
and the mailing of a copy of said recorded Notice of Delinquent Assessment to the Owner as set
forth above, the lien may be enforced in any manner permitted by law, including sale by the
court, sale by the trustee designated in the Notice, or sale by a trustee substituted pursuant to
Section 2934a of the California Civil Code. Any sale by the trustee shall be conducted in
accordance with the provisions of Sections 2924, 2924b and 2924c of the California Civil Code
applicable to the exercise of powers of sale in mortgages and deeds of trust. The Association
shall have the power to bid in at any foreclosure sale and to purchase, acquire, hold, lease,
mortgage and convey any Condominium. The Association may accept a deed in lieu of
foreclosure. Within twenty-one (21) days after the payment of the sums specified in the Notice
DEO rCRR' .'.er.Js �?
of Delinquent Assessment, the Association shall record or cause to be recorded in the Recorder's
Office of the County a lien release or notice of rescission stating the satisfaction and release of
the lien thereof, and shall provide the Owner of the Separate Interest a copy of the recorded lien
release or notice of rescission. j
If a Notice of Delinquent Assessments is recorded in error, the party who
recorded same shall, within twenty-one (21) calendar days after receiving notice that such Notice
of Delinquent Assessments was recorded in error, record or cause to be recorded in the
Recorder's Office of the County a lien release or notice of rescission, and shall provide the
Owner of the Separate Interest with a declaration that the lien filing or recording was in error and
a copy of the recorded lien release or notice of rescission.
No Owner may waive or otherwise escape liability for the Assessments described
in this Declaration by non-use of the Common Area or any other part of the Project, or
abandonment .of his or her Condominium. Notwithstanding anything contained in this
Declaration to the contrary, no action may be brought to foreclose the lien created by recordation
of a Notice of Delinquent Assessment, whether judicially, by power of sale, or otherwise, until
the expiration of thirty (30) days after a copy of said Notice of Delinquent Assessment, showing
the date of recordation thereof, has been mailed to the Owner of the Condominium which is
described in such Notice of Delinquent Assessment.
\C,
Section 16. Subordination to Certain Trust Deeds. The lien for the
Assessments described herein shall only be subordinate to the lien of a first Mortgage of an
Institutional Lender, given and made in good faith and for value, that is of record as an
encumbrance against such Condominium prior to the recordation of a Notice of Assessment.
The sale or transfer of any Condominium shall not affect the Assessment lien described herein,
nor shall such sale or transfer diminish or defeat the personal obligation of any Owner for
delinquent Assessments. However, the sale or transfer of any Condominium pursuant to a
judicial foreclosure or foreclosure by power of sale of a first encumbrance of an Institutional
Lender shall extinguish any Assessment lien recorded prior to the time of such sale or transfer.
Following a foreclosure, the interest of any purchaser at such foreclosure sale shall be subject to
all Assessments becoming due after the date of such sale or transfer, and in the event of
nonpayment of such Assessments, shall be subject to all of the remedies described in this
Declaration. For the purpose of this Section 16, a sale or transfer of a Condominium shall occur
on the date of recordation of a deed or similar document evidencing the conveyance of record
ownership of the Condominium.
Section 17. Operatina Expense Contribution. Upon the initial conveyance of a
Condominium pursuant to a Final Subdivision Public Report, the buyer of the Condominium
shall pay to the Association, through escrow, a contribution toward the operating expenses of the
Association in the amount of One Thousand Dollars ($1,000.00). The Board may increase the
amount of such contribution from time to time, but not more frequently than every five (5) years
from and after the recordation of this Declaration, and in an amount not to exceed any increase in
the nationwide consumer price index applicable to the five year period preceding such
adjustment.
DEO,'CC R .r:r.:1 33
ARTICLE VII
MANAGEMENT OF THE ASSOCIATION AND THE PROJECT
Section 1. General Powers of the Association. All powers relating to the
management, operation and maintenance of the Project and of the Common Area, as well as
certain rights, duties and powers relating to the individual Units, shall be vested in the
Association and in its Board of Directors. The specific and primary purposes and powers of the
Association and the Board are to provide architectural control of, manage and maintain the
Project and the Common Area and to enforce the provisions of the Governing Documents. The
Association may do any and all other acts and things that a nonprofit mutual benefit corporation
is empowered to do, as enumerated in Section 7140 of the California Corporations Code, which
may be necessary, convenient or desirable in the administration of its affairs and in order to cavy
out the duties described in this Declaration and the Governing Documents, including, without
limitation, those powers described in Section 383 of the California Code of Civil Procedure and
(to the extent not inconsistent herewith) those powers described in Section 1350 et seq. of the
California Civil Code (the Davis -Stirling Common Interest Development Act), as those sections
may be amended from time to time.
Subject to compliance with California Civil Code Section 1354, the Association,
through its Board of Directors, shall have the right and power to institute, defend, settle or
intervene on behalf of the Association in litigation, arbitration, mediation, or administrative
proceedings in matters pertaining to (a) enforcement of the Governing Documents; (b) damage to
the Common Areas; (c) damage to the Separate Interests which the Association is obligated to
maintain or repair, or (d) damage to the Separate Interests which arises out of, or is integrally
related to, damage to the Common Areas or Separate Interests that the Association is obligated to
maintain or repair; provided, however, that no representative of Declarant on the Board shall
vote on the initiation of any claim under California Civil Code Section 895, et seq., such that
from and after the first annual meeting of the Members of the Association, Declarant shall have
no control over the Association's ability to decide whether to initiate a claim under such
statutory provisions and in the event of such a vote, the affirmative vote of the two non -
Declarant representatives on the Board shall be binding so long as a quorum of the Board is
present at any meeting where such vote is taken.
The Association is not empowered to cause a forfeiture or abridgement of an.
Owner's right to the full use and enjoyment of such Owner's Unit on account of the failure by
the Owner to comply with provisions of the Governing Documents or duly -enacted rules of
operation for Common Areas and facilities, except by judgment of a court or a decision arising
out of arbitration, or on account of a foreclosure or sale under a power of sale for failure of the
Owner to pay assessments duly levied by the Association.
Whenever this Declaration or the Bylaws require or permit the approval, consent
or action of the Association, such approval, consent or action shall be that of the Board of
Directors, unless otherwise provided by this Declaration or the Bylaws. The Association,
through its Board of Directors, shall also have the authority to delegate its powers to committees,
officers of the Association and its agents and employees.
Section 2. Contracts of the Association. The Association shall have the right
and power to employ or engage a Managing Agent and other employees or agents and contract
for such services, labor and materials as the Board may deem reasonably necessary to operate
and maintain the Project, the Common Area and the Improvements thereon and to discharge the
Board's other duties. Any agreement for professional management of the Association or any
contract providing for services by the Declarant must provide for termination of such contract or
agreement by either party with or without cause or payment of a termination fee on thirty (30)
days or less written notice and for a maximum contract term not to exceed three (3) years. Any
agreement for professional management of the Association, and the maintenance of the
Association funds received by any Managing Agent, shall be subject to the provisions of
California Civil Code Sections 1363.1 and 1363.2. Notwithstanding the foregoing, the
limitations on the terms of contracts described in this Section 2 shall not apply to agreements for
the management or operation of the Clubhouse and Rental Program, which .agreements shall be
governed by the provisions of Section 2, Article XX, and Section 4, Article XXI, respectively.
Section 3. Additional Powers of Association. In addition to the duties and
powers enumerated in its Articles and Bylaws, or elsewhere described herein, and without
limiting the generality thereof, and subject to the limitations set forth in this Declaration
including, without limitation, those limitations set forth in Sections 6 and 7 of this Article, the
Association acting through the Board shall have the power to:
(a) Repair, replace and maintain and otherwise manage the Common
Area and the facilities, Improvements, and landscaping within the Project;
(b) Procure and maintain casualty, liability and other insurance on
behalf of the Association, including, without limitation, general liability and fire insurance with
extended coverage on the Project as required by the terms of this Declaration. The Board shall
also have the authority to procure and maintain any other type of insurance which the Board
determines is in the best interest of the Association and its Members;
(c) Obtain, for the benefit of the Common Area and the Units, all
necessary water, gas, electric, cable television, refuse collection and other utility services, to the
extent that such services are not separately charged and metered to the individual Units;
(d) Pay taxes and assessments which are or could become a lien on the
Common Area, or some portion thereof;
(e) Prepare budgets and financial statements for the Association and
its Members as prescribed in the Bylaws;
{f) Initiate and pursue disciplinary proceedings against Members for
violations of provisions of the Governing Documents, in accordance with the procedures set
forth in this Declaration;
(g) Subject to approval by a majority of the voting power of each class
of Members, borrow money and incur indebtedness for the purposes of the Association and
cause to be executed and delivered therefore, in the Association's name, promissory notes,
O[O CC& R,.vei. i4
bonds, debentures, deeds of trust, mortgages, pledges or other evidences of debt and security.
Any mortgage or conveyance of the Common Area, or grant of easement over the Common Area
(other than utility easements or other easements reserved in this Declaration), however, shall
require the vote or written consent of at least sixty-seven percent (67%) of the voting power of
the Owners (excluding the vote of Declarant);
(h) Obtain and cause to be maintained in force at all times a fidelity
bond for any person handling funds of the Association, including, but not limited to, employees
of the Managing Agent, if any; and
(i) Comply with all City requirements for the Project as described in
Article XXII of this Declaration.
Section 4. Maintenance of Condominium Buildings and Common Area by the
Association.
(a) The Association shall provide exterior maintenance of each
Condominium Building as follows:
(i) The Association shall maintain in good repair all exterior
surfaces including, but not limited to, the exterior windows (in accordance with a regularly
scheduled cleaning program, except for those windows for which the Unit Owner is responsible),
walls and roof. Except as provided in Section 5 below, the Owner of each Unit shall maintain in
good repair all interior surfaces, parts and portions of the Unit.
(ii) Such exterior maintenance shall not include: interior doors,
locks, latches, weather stripping and thresholds, interior building surfaces, stoppage of drains
when attributable to a specific Unit, I1VAC systems (including, without limitation, air
conditioner condenser units) which serve one specific Unit, or any repairs or replacements
arising out of or caused by the willful or negligent act of the Owner, his or her family, renters or
invitees. Such excluded items shall be the responsibility of the Owner of each Unit. Should the
willful or negligent activities of any Owner, family members, renters or invitees of such Owner
result in damage to or destruction of any portion of the Common Area or any Common Area
Improvement, that Owner shall be held responsible for all costs associated with the repair or
replacement of that portion of the Common Area, which expense may be enforced as a
Reimbursement Assessment.
` (b) The Association shall provide any necessary repair and
maintenance of the Common Area Improvements, including the Condominium Buildings, which
may be occasioned by the presence of wood -destroying pests or organisms. Any temporary
relocation of Owners or occupants of a Unit required for the treatment of wood -destroying pests
or organisms, shall be conducted in accordance with California Civil Code Section 1364(c) and
1364(d).
(c) The Association shall provide landscaping and gardening services
for all Association Common Areas and shall assure that all landscaping is properly irrigated,
trimmed and maintained. The Association shall repair and maintain all Recreational Amenities
DEO CCSR's.: ..:•} 35
within the Association Common Area in a neat, clean, orderly, safe, sanitary and attractive
condition subject to the right of the Association to enter into contracts with third parties for such
repair maintenance responsibilities (for instance, under any contract described in Section 2
Article XX, or Section 4, Article XXI). �(
(d) In addition to the general maintenance requirements described in
this Section 4, the Association shall at all times maintain and operate all Common Area,
landscaping and other Common Area Improvements and Recreational Amenities in the Project in
accordance with the standards and requirements set forth in the Operations Manual and in
accordance with all other Maintenance Obligations imposed by this Declaration, including,
without limitation, those Maintenance Obligations described in Article I, Section 36 of this
Declaration. Commencing with the recordation of this Declaration in the Official Records of
Riverside County, California, and ending ten (10) years after the last sale of a Unit in the Project
by Declarant, the maintenance requirements and specifications set forth in the Operations
Manual may be enforced by Declarant, its successors and assigns, or by any third party
contractor that is managing or operating the Clubhouse pursuant to a management contract with
the Association, or by the Operator of the Resort Rental Program, regardless of ownership of a
Unit in the Project through all available remedies at law or in equity, including, without
limitation, specific performance or injunctive relief; provided, however, that such enforcement
rights shall not include any lien rights against the Owners or the Association, except for a
judgment lien obtained in connection with any judgment rendered in an enforcement proceeding
or action hereunder. Notwithstanding anything to the contrary contained in this Declaration, the
provisions of this subparagraph (d) shall not be amended without the vote or written consent of at
least sixty-seven percent (67%) or more of the voting power of the Members of the Association
other than Declarant, and the vote or written consent of the Declarant.
Section S. Repair and Maintenance of the Units and Exclusive Use Cornmon
Areas by Owners. Each Owner shall maintain, repair, replace and restore all portions of his or
her Unit, including, without limitation, all interior window glass, any exterior glass located
between the Unit and any Exclusive Use Common Area appurtenant to such Owner's Unit, the
interior walls, ceilings, flooring and doors in a clean, sanitary and attractive condition, and shall
also be responsible for the maintenance and repair of the plumbing, electrical and HVAC
systems solely servicing his or her Unit even if located within the outside perimeter of the
exterior bearing walls of the Condominium Building and any HVAC system solely servicing his
or her Unit whether located within the Unit or within any Exclusive Use Common Area
specifically designed for such system. Owners shall keep Exclusive Use Common Areas
appurtenant to his or her Unit, including, without limitation, balconies, patios, entries and garage
areas in a broom clean and orderly condition, but such Owners shall not paint, repair or replace
any portion of such Exclusive Use Common Areas without the prior written consent of the
Architectural Committee. Notwithstanding the foregoing, each Owner shall maintain in good
condition and repair, and replace, at his or her own expense, the garage door opener, the interior
of the Garage Air Space or the Exclusive Use Garage assigned to such Owner's Unit, and any
damage to the garage door due to the Owner's negligence or misuse. Every Owner must
promptly perform all maintenance and repair work within his or her Unit and/or Exclusive Use
Garage. All repairs and maintenance effected pursuant to this Section shall be subject to such
rules as the Association may establish with respect to same, and the Maintenance Obligations of
aEo C:c&R's,ver, i4 3 7
the Owner, including, without limitation, those Maintenance Obligations included in the
Homeowner's Maintenance Manual, if any. If any Owner fails to maintain or make the repairs,
replacements or restoration which are the responsibility of such Owner as herein provide, then,
upon vote of a majority of the Board, and after not less than thirty (30) days notice to the Owner
(except in the event of an emergency), the Association shall have the right (but not the
obligation) to enter the Unit and/or appurtenant Exclusive Use Common Area and provide such
maintenance or make such repairs, replacements or restoration, and the cost thereof shall be a
Reimbursement Assessment chargeable to such Condominium and payable to the Association by
the Owner thereof. No Owner shall have repairs made to any plumbing or electrical wiring
within or serving a Unit or to any HVAC system for which the Owner is responsible, wherever
located, except by licensed plumbers, electricians and HVAC repair personnel; provided,
however, that if any repair or alterations are to be made to any Common Area, the Board must
first approve such work. The provisions as to the use of a licensed plumber, electrician or
HVAC repair person shall not be applicable to Declarant.
Section 6. Additional Restrictions on Power of the Board. The Board shall be
prohibited, without the prior vote or written consent (by vote at a meeting of the Association or
by written ballot without a meeting) of a majority of the voting power of the Members, other
than Declarant, constituting a quorum consisting of more than fifty percent (50%) of the voting
power of the Association residing in Members other than Declarant, from doing any of the
following: (i) incurring aggregate expenditures for capital improvements to any portion of the
Project in any fiscal year in excess of five percent (5%) of the budgeted gross expenses of the
Association for that fiscal year; (ii) selling during any fiscal year property of the Association
having an aggregate fair market value greater than five percent (5%) of the budgeted gross
expenses of the Association for that fiscal year; (iii) paying compensation to Directors or
Officers of the Association for services performed in the conduct of the Association's business;
provided, however, that the Board may cause a Director or Officer to be reimbursed for expenses
incurred in carrying on the business of the Association; or (iv) filling a vacancy on the Board
created by the removal of a Director (except for Directors elected by Declarant using its Class C
membership who may only be elected by Declarant for so long as the Class C membership
continues to exist).
Section 7. Limitation on Board Authority to Contract. The Board shall not
enter into any contracts for goods or services with a duration greater than one (1) year without
the vote or written consent (by vote at a meeting of the Association or by written ballot without a
meeting) of a majority of the Members, other than Declarant, constituting a quorum consisting of
more than fifty percent (50%) of the voting power of the Association residing in Members other
than Declarant, with the following exceptions: (i) a management contract, the terms of which
have been approved by the Federal Housing Administration or Veterans Administration; (ii) a
contract with a public utility company if the rates charged for the materials or services are
regulated by the Public Utilities Commission; provided, however, that the term of the contract
shall not exceed the shortest term for which the supplier will contract at the regulated rate;
(iii) prepaid casualty and/or liability insurance policies of not to exceed three (3) years' duration,
provided that the policy provides for short rate cancellation by the insured; (iv) lease agreements
for laundry room fixtures and equipment of not to exceed five (5) years' duration, provided that
the lessor under the agreement is not an entity in which the Declarant has a direct or indirect
DEO.'cc&R's.ve, 14 38
ownership interest of ten percent (10%) or more; (v) agreements for cable television services and
equipment or satellite dish television services and equipment of not to exceed five (5) years'
duration, provided that the supplier is not an entity in which the Declarant has a direct or indirect
ownership interest of ten percent (10%) or more, (vi) agreements for sale or lease of burglar
alarm and fire alarm equipment, installation and services not to exceed five (5) years' duration,
provided that the supplier is not an entity in which the Declarant has a direct or indirect
ownership interest of ten percent (10%) or more; or (vii) a contract for a term not to exceed three
(3) years that is terminable by the Association after no longer than one (1) year without cause,
penalty, or other obligation upon ninety (90) days written notice of terrrrination to the other party;
(viii) a contract approved by the California Department of Real Estate; (ix) a management or
operation contract for the Clubhouse as described in Section 2, Article XX; (x) a management or
operation contract for the Resort Rental Program as described in Section 4, Article XXI, or (xi) a
management contract with a term not to exceed three (3) years.
Section 8. Maintenance of Public Utilities. Nothing contained herein shall
require or obligate the Association to maintain, replace or restore the facilities of public utilities
which are located within easements in the Common Arca. However, the Association shall take
such steps as are necessary or convenient to ensure that such facilities are properly maintained,
replaced or restored by such public utilities.
Section 9. Rights of Entry. Each Owner grants to the Association an
easement and right to enter each Unit or to have utility companies or repaiunen enter such Units
in order to repair the plumbing, HVAC and electrical systems located thereon. The Association,
through its agents or employees, shall have a limited right of entry in and upon all Units for the
purpose of inspecting the Project, and taking whatever corrective action may, after approval by a
majority vote of the Board, except in an emergency, be deemed necessary or proper by the
Board, consistent with the provisions of this Declaration. This right of entry shall include the
right to enter a Unit for purposes of construction, maintenance or repair for the benefit of the
Common Area or the Owners in common. However, nothing herein shall be construed to impose
any obligation upon the Association to maintain or repair any property or portion of a Unit to be
maintained or repaired by the Owner thereof.
Nothing in this Article shall in any manner limit the right of an Owner to the
exclusive occupancy and control of his or her Unit. Entry into a Unit by the Association, for
other than emergency repairs, shall be made only after three (3) days' notice has been given to
the Owner (and, if applicable, to the occupant) of the Unit, shall be made with as little
inconvenience as practicable to the Owner or occupant and any damage caused thereby shall be
repaired by the party causing such damage. In the case of an emergency, the right of the
Association, or an agent or employee on its behalf, to enter into a Unit shall be immediate;
provided, however, that such entry shall be made with as little inconvenience as practicable to
the Owner or occupant and any damage caused thereby shall be repaired by the party causing
such damage. The Association shall not be liable for failing to exercise this right of entry during
an emergency or otherwise.
Section 10. Association Rules. Subject to any limitations set forth in the
Governing Documents, and further subject to any requirements of California Civil Code Section
DECPCC&R.s.vci.14
39
1357.130, or any successor statute, the Board shall have the power to adopt, amend and repeal
such rules and regulations as it deems reasonable, which may include the establishment of a
system of fines and penalties enforceable as a Reimbursement Assessment. The Association
Rules shall govern matters in furtherance of the purposes of the Association, including, without
limitation, the use of the Common Area; provided, however, that the Association Rules shall not
(i) discriminate among Owners similarly situated, (ii) discriminate against renters in 'natters
affecting renters, (iii) change the resort lifestyle element of the Project, and/or (iv) be
inconsistent with this Declaration, the Articles or Bylaws. A copy of the Association Rules as
they may from time to time be adopted, amended or repealed or a notice setting forth the
adoption, amendment or repeal of specific portions of such rules shall be delivered to each
Owner. The Association Rules shall have the same force and effect as if they were set forth in
and were part of this Declaration and shall be binding on the Owners and their successors in
interest whether or not actually received by thein. If the Association adopts a policy imposing
any monetary penalty, including any fee, on any Member for a violation of the Governing
Documents or rules of the Association, including any monetary penalty relating to the activities
of an occupant or invitee of a Member, the Board shall adopt and distribute to each Member, by
personal delivery or first class mail, a schedule of the monetary penalties that may be assessed
for those violations. If changes are made to the original schedule which was adopted and
distributed to the Members, the Board shall distribute copies of the revised schedule to the
Members by personal delivery or first class mail. Notwithstanding the following, if any
Association Rule is deemed to be an operating rule under Civil Code Section 1357.100, the
Association shall comply with the requirements and procedures set forth in Civil Code Section
1357.100 et.seq.
Section 11. Duty to Report. Each Owner shall promptly report to the
Association_ any defect or need for repairs in or to any part of the Common Area or other portions
of the Project, the responsibility for remedying of which is that of the Association. Without
limiting the foregoing, Owners shall promptly report to the Association and to Declarant any
evidence of water leaks, water infiltration, excess moisture or mold, failure or malfunctioning of
the HVAC systems, windows or doors, both within such Owner's Unit and in the Common Area.
Section 12. Reservation for Periodic Inspections, Repairs and Maintenance.
Declarant shall, at all times, have the right to inspect the condition of the Common Area and
improvements and facilities thereon, and to perform any maintenance and any repairs thereto as
Declarant deems necessary or appropriate in Declarant's sole and absolute discretion. If
Declarant desires to inspect, maintain and/or repair any portion of the Exclusive Use Common
Area which is appurtenant to only one (1) Unit, Declarant shall provide reasonable prior notice to
the affected Unit Owner, except in any situation deemed, in Declarant's sole and absolute
discretion, to be an emergency. If Declarant determines, in its sole and absolute discretion, that
the Association has failed to maintain any portion of the Common Area or the Exclusive Use
Common Area in a manner consistent with the Operations Manual or the Association's Common
Area Maintenance Manual, it may so notify the Association, in writing, and the Association shall
promptly perform the required maintenance or repairs. Declarant shall have the right to make a
record of its inspectio
ns, maintenance and/orrepairs made by any means available, including, but
not limited to, photographing and/or videotaping the Common Area and the Exclusive Use
Common Area and shall have the right to perforin tests or examinations to determine the
i4
40
condition of the same. Notwithstanding the foregoing, the foregoing shall not impose upon
Declarant any independent obligation to perforin inspections, maintenance or repairs of they
Common Area or the Exclusive Use Common Area, and the Association shall not be relieved of
its obligation to maintain the Common Area and the Exclusive Use Common Area because of the1
election of Declarant or any predecessor Declarant to inspect or not to inspect or report to the
Association the condition of the Common Area and the Exclusive Use Common Area or to
perform or not to perform any maintenance or repair.
Section 13. Security. The Association may, but shall not be obligated to,
maintain or support certain activities within the Project designed to make the Project safer than it
otherwise might be. Neither Declarant nor the Association makes any representations
whatsoever as to the security of the Project or any Unit, or the effectiveness of any monitoring
system or security service. All Owners agree to release Declarant and the Association from any
loss or claim arising from the occurrence of any crime or criminal act of a third party. Neither
the Association nor the Declarant shall in any way be considered insurers or guarantors of
security within the Project. Neither the Association nor Declarant shall be held liable for any
loss or damage by reason of failure to provide adequate security or ineffectiveness of security
measures undertaken, if any. All Owners, renters or other occupants of any Unit and their
respective invitees acknowledge that the Association and its Board and Declarant do not
represent or warrant that any fire protection system, burglar alarm system or other security
system, if any, may not be compromised or circumvented or that any fire protection or burglar
alarm systems or other security stems will in all cases provide the detection or protection for
which the system is designed or intended. Each Owner, renter or other occupant of any Unit and
their respective invitees acknowledges and understands that the Association, the Board and
Declarant are not insurers and that each Owner, renter or other occupant of any Unit and their
respective invitees assume all risks for loss or damage to persons, to Units and to the contents of
Units and further acknowledge that neither the Association, its Board nor Declarant have made
neither representations nor warranties nor has any Owner, renter or occupant of any Unit, or
invitees relied upon any representations or warranties, expressed or implied, including any
warranty of merchantability or fitness for any particular purpose, relative to any fire and/or
burglar alarm systems or other security systems recommended or installed, if any, or any security
measures undertaken within the Project, if any.
ARTICLE VIII:
INSURANCE
Section 1. Duty to Obtain Insurance: Tyjes. The Association shall obtain and
continue in effect the following types and policies of insurance: Xlq
w
(a) Comprehensive public liability insurance for claims for personal
injury and/or property damage arising out of a single occurrence with a limit of not less than
Three Million Dollars ($3,000,000.00), which shall at ail times be in conformance with the
requirements of California Civil Code Sections 1365.7 and 1365.9. Such policy of public
liability insurance covering the Common Area shall contain a "Severability of Interest"
endorsement which shall preclude the insurer from denying the claim of any Owner because of
negligent acts of the Association or other Owners. Such liability insurance shall include
coverage for (i) general liability of the Association and its agents; (ii) individual liability of
officers, directors and committee members of the Association for negligent acts or omissions of
those persons acting in their capacity as officers, directors and committee members, and (iii)
individual Liability of the Owners and their respective family members against liability incident
to the ownership or use of the Common Area or an other Association owned or maintained real
or personal property.
(b) Casualty insurance and fire insurance with extended coverage, in
an amount equal to one hundred percent (100%) of the full insurable replacement cost of the
Project, including all Association Common Area and all Condominium Buildings and all
fixtures, machinery and equipment permanently affixed to the Condominium Buildings and not
located within a Unit, without deduction for depreciation. Such insurance shall be maintained by
the Board for the benefit of the Association, the Owners and Institutional Holders as their
interests may appear as named insured, subject, however, to loss payment requirements set forth
herein. Each such policy shall contain a standard mortgagee clause, which must be endorsed,
which provides that any proceeds shall be paid to the Association for the use and benefit of
mortgagees as their interests may appear.
(c) Workers' compensation insurance to the extent required by law (or
such greater amount as the Board deems necessary). The Association shall also obtain a
Certificate of Insurance naming it as an additional insured in regard to workers' compensation
claims from any independent contractor who performs any service for the Association, if the
receipt of such a certificate is practicable.
(d) A fidelity bond in an amount equal to at least the estimated
maximum of funds, including reserves, in the custody of the Association or a management agent
at any given time during the terrn of the fidelity bond; provided, however, that the bond shall not
be less than a sum equal to three (3) months aggregate of the Regular Assessments on all Units
plus reserve funds of the annual Regular Assessments, plus assessments collected with Regular
Assessments (if any) for payment of the Annual Mitigation Fee to the City, naming the
Association as obligee and insuring against loss by reason of the acts of the Board, officers and
employees of the Association, whether or not such persons are compensated for their services,
and, if practicable, insuring against loss by reason of the acts of any Managing Agent and its
employees.
(e) Earthquake insurance to the extent required by law, and if not
required by law, then to the extent available at commercially reasonable rates in the opinion of
the Board.
The Association may purchase such other insurance as it deems necessary,
including but not limited to, flood insurance, plate glass insurance, medical payments, malicious
mischief and vandalism insurance.
Section 2. Waiver of Claims Against Association. As to each policy of
insurance maintained by the Board, the Owners hereby waive and release all claims against the
Association, the Board and Declarant, only to the extent of the insurance proceeds available to
the Owners, whether or not the insurable damage or injury is caused by the negligence of or
breach of any agreement by said persons.
Section 3. Individual Insurance. Each Owner shall maintain property
insurance against losses to personal property located within the Owner's Unit and to any
upgrades or Improvements located within the Unit and liability insurance against any liability
resulting from any injury or damage occurring within the Unit. The Association's insurance
policies will not provide coverage against any of the foregoing. All Owners hereby waive all
rights of subrogation against the Association, and any insurance maintained by an Owner must
contain a waiver of subrogation rights by the insurer as to the Association; provided, however,
that a failure or inability of an Owner to obtain such a waiver shall not defeat or impair the
waiver of subrogation rights between the Owners and the Association set forth herein. No
Owner shall separately insure any property covered by the Association's property insurance
policy as described above. If any Owner violates this provision and, as a result, there is a
diminution in insurance proceeds otherwise payable to the Association, the Owner will be liable
to the Association to the .extent of the diminution. The Association may levy a Reimbursement
Assessment against the Owner's Unit to collect the amount of the diminution.
Section 4. Notice of Expiration Re uirements. All of the policies of
insurance or fidelity bonds described herein shall, to the extent reasonably obtainable, contain a
provision that such policies shall not be canceled or terminated, or expire by their terms, without
thirty (30) days' prior written notice to the Association, Declarant, Owners and Institutional
Holders (provided that such Owners or Institutional Holders have filed written requests with the
carrier for such notice) and every other person in interest who has requested such notice of the
insurer.
Section 5. Insurance Premiums. Premiums for any blanket insurance
coverage obtained by the Association and any other insurance deemed necessary by the Board
shall be a Common Expense to be included in the assessments levied by the Association and
collected from the Owners. The proportion of such assessments necessary for the required
insurance premiums shall be used solely for the payment of premiums of required insurance as
such premiums become due.
DEO: rc&R•s.. ar.1 I 43
Section 6. Trustee for Policies, The Board shall be trustee of the interests of
all named insureds under policies of insurance purchased and maintained by the Association. All
insurance proceeds under any such policies shall be paid to the Board as trustee. The Board shall
have full power to receive and to receipt for the proceeds and to disburse such proceeds as
provided herein. Insurance proceeds shall be used by the Association for the repair, restoration
or replacement of the property for which the insurance was carried or otherwise disposed of as
provided in this Declaration. The Board shall have the authority to negotiate loss settlements
with insurance carriers, with participation by Institutional Holders who so desire and have filed
written requests under Section 4 of this Article. Any two (2) Officers of the Association may
sign a loss claim form and release form in connection with the settlement of a loss claim, and
such signatures shall be binding on all the named insureds, with the exception of the
Administrator of the Veterans Administration, an officer of the United States of America.
Section 7. Actions as Trustee. Except as otherwise specifically provided in
this Declaration, the Board, acting on behalf of the Association and all Owners, with the
exception of the Administrator of the Veterans Administration, an officer of the United States of
America, shall have the exclusive right to bind such parties in respect to all matters affecting
insurance carried by the Association, the settlement of a loss claim, and the surrender,
cancellation, and modification of all such insurance, in a manner satisfactory to seventy-five.
percent (75%) of the Institutional Holders who have filed requests under Section 4 of this Article
to the extent such Institutional Holders desire to participate. Duplicate originals or certificates of
all policies of fire and casualty insurance carried by the Association and of all renewals thereof,
together with proof of payment of premiums, shall be delivered by the Association to all
Institutional Holders who have requested the same in writing.
Section 8. Annual Insurance Review. The Board shall, upon issuance or
renewal of insurance, but no less than annually, review the insurance carried by the Association
for the purpose of determining the adequacy of the Association's insurance coverage, including,
without limitation, the general liability policy referred to in Section 1 (a), and the amount of the
casualty and fire insurance referred to in Section 1 (b) above.
Upon such review, the Association shall notify the Owners as to the amount and
type of insurance carried by the Association as required by the provisions of Article VII, Section
7 (f), of the Bylaws, and it shall accompany this notification with statements to the effect that (i)
the Association is or is not insured to the levels specified by Civil Code Section 1365.9; (ii) if
not so insured, Owners with an ownership interest in the Common Area may be individually
liable for the entire amount of the judgment; and (iii) if the Association is insured to the levels
specified by Civil Code Section 1365.9, then individual Owners with an ownership interest in the
Common Area may be individually liable only for their proportional share of assessments levied
to pay the amount of any judgment which exceeds the limits of the Association's insurance.
The Board may, in its discretion, obtain a current appraisal of the full replacement
value of any buildings and Improvements within the Common Area, except for foundations,
footings and masonry walls, without deduction for depreciation, by a qualified independent
insurance appraiser, prior to each such annual review.
i4
Section 9. Required Waiver. All policies of hazard and physical damage
insurance shall, to the extent reasonably obtainable,' provide for waiver of the following rights,
the extent that the respective insurers would have the rights without such waivers:
(a) Subrogation of claims against the guests, invitees and renters of the
Owners;
(b) Any defense based on co-insurance;
(c) Any right of set-off, counterclaim, apportionment, proration or
contribution by reason of other insurance not carried by the Association;
(d) Any invalidity, other adverse effect or defense on account of any
breach of warranty or condition caused by the Association, any Owner or any renter of ari
Owner, or arising from any act, neglect or omission of any named insured, or the respective
agents, contractors and employees of any insured;
(e) Any right of the insurer to repair, rebuild or replace, and, in the
event the building or other Improvement is not repaired, rebuilt or replaced following loss, any
right to pay under the insurance an amount less than the replacement value of the improvements
insured or the fair market value thereof; -
IN
(f) Notice of the assignment of any Owner of its interest in the
insurance by virtue of a conveyance of any Condominium; and
(g) Any right to require any assignment of any Mortgage to the
insurer.
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DECnCC&R:,.ver.14 S
ARTICLE IX
DESTRUCTION OF IMPROVEMENTS
Section 1. Restoration Defined. As used in this Article IX, the term "restore"
shall mean repairing, rebuilding or reconstructing damaged Improvements to substantially the
same condition and appearance in which it existed prior to fire or other casualty damage.
Section 2. Insured Casualty. If any Improvement required to be maintained
by the Association is damaged or destroyed from a risk covered by the insurance required to be
maintained by the Association, then the Association shall, to the extent permitted under existing
laws, restore the Improvement to the same condition as it was in immediately prior to the
damage or destruction. The Association shall proceed with the filing and adjustment of all
claims arising under the existing insurance policies. The insurance proceeds shall be paid to and
held by the Association or an insurance trustee if selected under the provisions of Section 5 of
this Article IX,
Section 3. Restoration Proceeds.
(a) Sufficient Proceeds. The costs of restoration of the damaged
Improvement shall be paid first from any insurance proceeds paid to the Association under
existing insurance policies. If the insurance proceeds exceed the costs of restoration, the excess
proceeds shall be paid into capital improvement reserves and used for the benefit of the
Association. If the insurance proceeds are insufficient to restore the damaged Improvement, the
Board shall then add to the insurance proceeds all reserve account funds designated for the repair
or replacement of the damaged Improvement. If the total funds then available are sufficient to
restore the damaged Improvement, the Improvement shall be restored. If the aggregate amount
of insurance proceeds and such reserve account funds are insufficient to pay the total costs of
restoration, a Special Assessment against all Owners shall be levied by the Board up to the
maximum amount permitted without the approval of the Members in accordance with the
limitations set forth in this Declaration and by law. If the total funds then available are sufficient
to restore the damaged Improvement, the Improvement shall be restored.
(b) Insufficient Proceeds. If the total funds available to the
Association are still insufficient to restore the damaged Improvement, then the Board first shall
attempt to impose an additional Special Assessment pursuant to Subsection (i) below; and
second, the Board shall use a pian of alternative reconstruction pursuant to Subsection (ii) below.
If the Members do not approve such actions, and if the damaged Improvement is part of a
Condominium Building ("Damaged Building") then the entire Damaged Building shall be sold,
demolished and/or restored pursuant to Subsection (iii) below.
(i} Additional Special Assessment. If the total funds available
to restore the damaged Improvement as provided in Section 3(a) are insufficient, then a meeting
of the Members shall be called for the purpose of approving a Special Assessment to make up all
or a part of the deficiency ("Additional Special Assessment"). If the amount of the Additional
Special Assessment approved by the Members, and the amounts available pursuant to
Section 3(a) above, are insufficient to restore the damaged Improvement, or if no Additional
DLO. CCSR';.vcr.. , 46
Special Assessment is approved, the Association shall consider a plan of alternative
reconstruction in accordance with Subsection (ii) below.
(7111)
(ii) Alternative Reconstruction. The Board shall consider and
propose plans to reconstruct the damaged Improvement making use of whatever funds are
available to it pursuant to Section 3(a) and Subsection (i) above ("Alternative Reconstruction").
All proposals shall be presented to the Owners. If the damaged Improvement includes a
Damaged Building, and if two-thirds of the voting power of the Owners of Units within the
Damaged Building ("Affected Owners") and a majority of the voting power of the Members,
including the Affected Owners, agree to any plan of Alternative Reconstruction, then the Board
shall contract for the reconstruction of the damaged Improvement in accordance with the plan of
Alternative Reconstruction making use of whatever funds are then available to it. If no plan of
Alternative Reconstruction is agreed to, then the provisions of Subsection (iii) shall apply.
(iii) Sale and Restoration or Removal of Damaged Building. If
the damaged Improvement is part of a Damaged Building, the damage renders one or more of the
Units uninhabitable, and the Improvements will not be restored in accordance with the provisions
of Subsections (a) and (b)(i) or (b)(ii) above, the Board, as the attorney in fact for each Owner of
a Unit in the Damaged Building, shall be empowered to sell the Damaged Building, including all
Units therein, in their then present condition, on terms to be determined by the Board, provided
that the Board receives adequate assurances that the purchaser shall, and has the financial
capability to: (i) restore the Damaged Building (either by renovation or removal and rebuilding),
(ii) remove the Damaged Building (including foundations), grade the area, and appropriately
landscape or otherwise improve the area, or (iii) perform any combination of the foregoing. Any
work to be performed by the purchaser with respect to any of the foregoing shall be subject to the
provisions of this Article IX and the provisions of this Declaration. In lieu of selling the
Damaged Building to a third person, the Association may purchase the Damaged Building on
satisfaction of the following conditions:
(1) Members holding 67% of the total voting power of
the Members (including the votes allocated to the Owners of the Units within the Damaged
Building) approve of the purchase;
(2) the purchase price is the fair market value of the
Damaged Building as the date of sale as determined by an appraisal made by a qualified and
independent real estate appraiser;
‘'‘100 (3) any Special Assessment needed to fund the
purchase price shall be levied against all Units, including the Units within the Damaged
Building;
(4) the Association has an adequate source of funds to
repair, renovate or rebuild all or a portion of the Damaged Building and/or to remove and
appropriately landscape the remaining area. For this purpose, no Unit that is being purchased
shall be subject to any assessment intended to be used as a source of such funds.
(iv) Distribution of Proceeds. The proceeds from the sale,
together with the insurance proceeds received and any reserve funds allocated to the Damaged
Building, after deducting therefrom the Association's sale expenses, including commissions, title
and recording fees, and legal costs, shall be distributed among the Owners of Units in the
Damaged Building and their respective holders of Mortgages, in proportion to the respective fair
market values of these Units immediately prior to the date of the event causing the damage as
determined by an independent appraisal made by a qualified real estate appraiser selected by the
Board. If a Damaged Building is removed and not restored so that the new Condominium
Building contains the same number of Units as the removed Condominium Building, the Board
shall take appropriate steps to adjust the property interests of the remaining Unit Owners and to
effect such amendments as may be necessary to the Declaration, the Condominium Plan and the
Map to reflect the revised property interests and other related changes.
(v) Owner's Right of First Refusal. Notwithstanding anything
in this Declaration to the contrary, any Owner or group of Owners shall have a right of first
refusal to match the terms and conditions of any offer made to the Association in the event of a
sale of the Damaged Building under Subsection (iii) above, provided the Owners exercise this
right within twenty (20) days of receipt of a notice from the Association containing the terms and
conditions of any offer the Association has received and which the Association has the right to
accept and has elected to accept. If the Owner or group of Owners subsequently. default on their
offer to purchase, they shall be liable to the Affected Owners and their respective mortgagees for
any damages resulting from the default. If more than one Owner or group elects to exercise this
right, the Board shall accept what it determines to be the best offer.
Section 4. Restoration Contract. If there is a determination to restore the
damaged Improvement, the Board or its authorized representative shall obtain bids from at least
two (2) licensed and reputable contractors and shall accept the repair and reconstruction work
from whomever the Board determines to be in the best interests of the Members (which may not
necessarily be the low bidder). The Board shall have the authority to enter into a written contract
with the contractor for such repair and reconstruction, and the insurance proceeds shall be
disbursed to the contractor according to the terms of the contract. The Board shall take all steps
necessary to assure the commencement and completion of authorized repair and reconstruction at
the earliest practicable date. Such construction shall be commenced no later than one hundred
eighty (180) days after the event requiring reconstruction or, if the reconstruction funds are not
then available, such construction shall commence as soon as practicable following the date such
funds become available, and shall thereafter be diligently prosecuted to completion. Such
construction shall return the Project to substantially the same condition and appearance in which
it existed prior to the damage or destruction.
Section 5. Insurance Trustee. All property insurance proceeds payable to the
Association under the policy described in Section 1(b), Article VIII, subject to the rights of
Institutional Holders under Article XIII, may be paid to a trustee as designated by the Board to
be held and expended for the benefit of the Owners and Institutional Holders, as their respective
interests shall appear. The trustee shall be a commercial hank or other financial institution with
trust powers in the County in which the Project is located that agrees in writing to accept such
D£U'CC&R s.ver.14 !n
trust. If repair or reconstruction is authorized, the Association will have the duty to contract for
such work as provided for in this Declaration.
Section 6. • Authority To Effect Changes. If any Condominium Building or
portion thereof is damaged or destroyed or in need of renovation .or rehabilitation and the
Condominium Building is to be repaired or reconstructed, the Condominium Building may be
repaired or reconstructed in a manner that alters the boundaries of the Units or Common Area
provided the following conditions are satisfied:
(a) Approval. The alteration has been approved by the Board of
Directors, by Members holding a majority of the total voting power of the Association, and by
the holders of any first Mortgages to the extent required herein;
(b) Building Code. The Board of Directors has determined that the
alteration is necessary in order to comply with current building code requirements, to meet
current building construction standards and procedures, or to improve the conditions and quality
of the Condominium Building;
(c) Location and Size. The alteration does not materially change the
location of any Unit or materially reduce the size of any Unit without the consent of the Unit
Owner and the holders of any first Mortgages thereon. For purposes herein, a material reduction_
in the size of the Unit shall mean any alteration that increases or decreases the square footage of
the interior floor space of the Unit by more than five percent (5%) from that which was
originally constructed by Declarant;
(d) No Interference. The Board of Directors has determined that any
alteration that will relocate or reduce the Association Common Area will not unreasonably
interfere with the rights of the Owners and occupants to use and enjoy the Association Common
Area; and
(e) Condominium Plan. The Condominium Plan for the affected
Phase(s) is amended to reflect the alteration to the Units or Common Area.
Each Owner irrevocably appoints the Association as that Owner's attorney-in-fact
and irrevocably grants to the Association the full power in the name of the Owner to effect any
alteration to any Unit or Common Area as authorized above, including, but not limited to, the
execution, delivery and recordation of any Condominium Plan amendments, deeds or other
instruments.
Section 7. Minor Repair, Reconstruction and Restoration. The Board shall
have the duty to repair and reconstruct Improvements, without the consent of Members and
irrespective of the amount of available insurance proceeds, in all cases of partial destruction
when the estimated cost of repair and reconstruction does not exceed five (5%) percent of the
annual budgeted gross expenses of the Association. The Board is expressly empowered to levy a
Special Assessment for the cost of repairing and reconstructing improvements to the extent
insurance proceeds are unavailable, such assessments to be levied as provided in this Declaration
(hut without the consent or approval of Members, despite any contrary provisions in this
DEO CC &R .ve . i4
49
Declaration). Notwithstanding the foregoing or anything to the contrary set forth in this
Declaration, the Board is expressly empowered to levy a Special Assessment, regardless of
amount, as necessary to remove any damaged Improvements and to restore any damaged area in
the Project to a safe condition.
Section 8. Damage Or Destruction To A Unit. With the exception of any
casualty or damage covered by insurance kept by the Association, restoration and/or repair of
any damage to the interior of an individual Unit, including, without limitation, fixtures, cabinets
and Improvements therein, together with restoration of interior paint, wall coverings and floor
coverings, shall be performed by the Owner thereof, at such Owner's own cost and expense,
which restoration shall be completed as promptly as practical and in a lawful and workmanlike
manner, and, to the extent required under Article XII entitled "ARCHITECTURAL CONTROL"
and the Architectural Guidelines, if any, in accordance with plans approved by the Architectural
Committee as provided in Article XII herein.
(6*
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DE0.'CCS:R's.. r'
ARTICLE X
PROPERTY TAXES
Real property taxes, levies and assessments shall be separately and individually
billed by the County Assessor's Office to Owners of the Condominiums. Payment of any real or
personal property tax, assessment or levy of any type allocated to an individual Condominium
shall be the sole responsibility of the Owner of that Condominium. The Association shall not be
liable for the collection and payment of any real or personal property taxes of any type
whatsoever levied against individual Members and Owners on account of their Condominiums.
However, if all or some of the Units are taxed under an unsegregated blanket tax bill, each
Owner shall pay his or her proportionate share of any installment due under the blanket tax bill
to the Association at least ten (10) days prior to the delinquency date; and the Association shall
transmit the taxes to the appropriate tax collection agency on or before the delinquency date.
Blanket taxes shall be allocated among the Owners and their Condominiums, based upon
Declarant's determination of the total amount of real property taxes applicable to the Units
divided by the total number of Units to which the blanket tax bill applies. The Association shall
pay the taxes on behalf of any Owner who does not pay his proportionate share. In such event,
the Association shall charge the delinquent Owner a Reimbursement Assessment in the amount
of any sum so advanced, plus interest at the rate of ten percent (10%) per annum and any amount
necessary to reimburse the Association for any penalty or late charge actually assessed in
connection with the blanket tax bill, which late charge results from the failure of the delinquent
Owner to make timely payment of his proportionate share of the taxes. Until the close of escrow
for the sale of ninety percent (90%) of the Condominiums in the Project, the foregoing
provisions relating to the collection of taxes in connection with a blanket tax bill on all or any
portion of the Project may not be amended without the express written consent of Declarant. If,
after the receipt of an actual tax bill from the County Tax Assessor after payment of such
unsegregated blanket tax bill on a pro rata basis, there are any adjustments to be made to the
taxes allocable to each Unit, Declarant shall deliver an adjusted statement to each Owner, and if
the Owner owes additional taxes based upon .the actual tax bill, the Owner shall pay to the
Association within ten (10) days after receipt of the adjusted statement, the difference between
the amount paid by Owner and the actual amount of the tax based upon the County Tax Assessor
Statement. If the Owner paid a greater share of taxes than the amount due under the County Tax
Assessor Statement, the Association shall reimburse such Owner for any overpayment of taxes
within ten (10) days of receipt of the segregated County Tax 11 .ssessor Statement.
``% In the event that any taxes are levied or assessed against the Common Area or
�
personal property of the Association rather than against individual Condominiums, the amount of
such taxes shall be considered a Common Expense which shall be paid by the Association
through the Regular Assessment process.
CiEi1,CCtiit',.ver.i-i
ARTICLE XI
PROHIBITION AGAINST PARTITION OR SEVERANCE
OF UNIT FROM INTEREST IN COMMON AREA
Except as provided by California Civil Code Section 1359 or any amendment
thereto, the Common Area shall remain undivided and each Owner irrevocably waives the right
to bring any action to partition the Common. Area. The rights in the Common Area and title to
the respective Condominiums, together with any exclusive easements or rights appurtenant to
each Unit, shall not be separated, severed or separately conveyed, assigned, encumbered or
otherwise transferred. All rights in the Common Area shall be conclusively deemed to be
conveyed, assigned, transferred or encumbered with the respective Condominium even though
the description in the instrument of conveyance or encumbrance may refer only to the Unit.
\OZ
DCO.
ARTICLE XII
ARCHITECTURAL CONTROL
Section 1. Architectural Approval. In order to maintain a uniform and well-
maintained appearance throughout the Project, no Improvements shall be commenced, erected,
altered or maintained in the Project, except by Declarant, without the prior approval of the
Architectural Committee and, if applicable, the City of La Quinta as described in Section 8 of
Article XXII. Each Owner, other than Declarant, shall obtain the approval of the Architectural
Committee for any proposed modifications to a Unit or the Common Area in accordance with the
provisions set forth below. Any proposed modifications to a Unit or Common Area undertaken
pursuant to California Civil Code Section 1360(a)(2) in order to accommodate physically
handicapped persons shall be undertaken in accordance with the provisions of that section,
including submission of all plans and specifications for such modifications to the Architectural
Cozninittee for approval.
Section 2. Architectural Committee. An Architectural Committee, consisting
of three (3) members, shall be established for the Project. Declarant retains the sole right to
appoint, remove and replace all members of the Architectural Committee for a period of one (1)
year following the first conveyance of a Unit to an Owner under a Public Report. Declarant
further retains the right to appoint, remove and replace a majority of Architectural Committee
members for a period which commences one (1) year following the first conveyance to an Owner
under a Public Report, and which terminates ten (10) years after the conveyance of the last Unit
within the Project to an Owner under authority of a Public Report, unless, prior to said time,
Declarant waives its rights hereunder by notice in writing to the Association. The initial
members of the Architectural Committee shall therefore be appointed by Declarant prior to the
conveyance of the first Unit to an Owner under a Public Report. Declarant shall designate one
(1) member to serve a term of one (1) year; one (1) member to serve a term of two (2) years, and
one (1) member to serve a term of three (3) years. Thereafter, the terms of Architectural
Committee members appointed shall be three (3) years. Each Architectural Committee member
shall serve the length of his or her specified term unless such member has resigned or has been
removed from office. Any new member appointed to replace a member who has resigned or
been removed shall serve such member's unexpired term. Declarant shall have the sole right to
replace Architectural Committee members appointed by Declarant for the balance of their
unexpired terms.
‘N1100' After one (1) year from the first conveyance of a Unit to an Owner under a Public
VReport, the Board shall have the right to appoint, replace and remove one (1) member of the
Architectural Committee. When Declarant waives or no longer has the right to appoint, replace
and remove a majority of the members of the Architectural Committee, the Board shall have the
power to appoint, replace and remove all members of the Committee. Declarant and the Board,
in selecting members for the Architectural Committee, shall endeavor to appoint individuals who
have sufficient expertise to evaluate the effect of any Improvements on the architectural design
and structural integrity of the Project. Committee members appointed by Declarant need not be
Members of the Association. Committee members appointed by the Board shall be from the
-71
membership of the Association. The appointment, removal and replacement of Committee
members shall be specified in the minutes of the Association.
Section 3. Submission. Approval and Conformity of Plans. The Association
may adopt and promulgate such .Architectural Guidelines, if any, to be administered through its
Architectural Committee as the Board, in its discretion, may deem appropriate; provided,
however, that such Architectural Guidelines and any modification thereof shall be subject to
Declarant's written approval so long as Declarant has the right to appoint members to the
Architectural Committee as set forth above. No Improvements of any kind shall be commenced,
erected, placed or altered in, to or around any Unit or Exclusive Use Common Area until the
Owner has submitted to the Architectural Cornrnittee complete plans and specifications showing
the nature, kind, shape, height and materials, including the color and any other requirements set
forth in this Declaration or as may be required by the Architectural Committee or the
Architectural Guidelines, if adopted ("Plans and Specifications"), and approval in writing by the
Architectural Committee has been issued as provided in this Article XII.
The Architectural Committee may impose, or the Architectural Guidelines, if
adopted, may include, the following restrictions, requirements and limitations:
(a) Time limitations for the completion of the Improvements for which
approval is granted, or, if no time limit is specified, the time limitation shall be thirty (30) days;
(b) Conformity of completed Improvements to Plans and
Specifications approved by the Architectural Committee; provided, however, that as to
purchasers and encumbrancers in good faith and for value, unless a notice of noncompletion or
nonconformance identifying the violating Condominium and its Owner and specifying the reason
for the notice, executed by the Architectural Committee, is given to such Owner within thirty
(30) days of the expiration of the time limitation described in subsection {a) above (or, if no time
limitation is specified in the Architectural Guidelines, within thirty (30) days of the time
limitation included in the written approval of the Plans and Specifications by the Committee), or
unless legal proceedings have been instituted to enforce compliance or completion within that
thirty (30) day period, the completed Improvements shall be deemed to be in compliance with
Plans and Specifications approved by the Architectural Committee;
(c) Such other limitations and restrictions as the Board in its
reasonable discretion shall adopt, including, without limitation, regulation of Improvements to
Units, and regulation of construction, reconstruction, exterior addition, change, alteration to or
maintenance of any building, with regard to the nature, kind, shape, height, materials, exterior
color and surface and location of such structure.
The Architectural Committee may delegate its plan review responsibilities to one
(1) or more members of the Committee. Upon such delegation, the approval or disapproval of
Plans and Specifications by such persons shall be equivalent to approval or disapproval by the
entire Committee. The Committee and/or the Board may establish reasonable procedural rules
and may assess a reasonable fee (net to exceed the estimated cost of review) per submission in
connection with review of Plans and Specifications. The Committee may also retain outside
consultants and architects to assist it with its plan review responsibilities. Unless such rules
DEO CCs:1"`',...2r.1-, s.,
regarding submission of plans are complied with, such Plans and Specifications shall be deemed
not submitted. In the event that the Architectural Committee fails to approve or disapprove plans
or other requests submitted to it within thirty (30) days after such submission of all required
Plans and Specifications and other materials as may be required by the Architectural Committee,
then the Owner requesting approval shall give the Committee a second written notice of its
request. If the Architectural Committee. fails to approve or disapprove such request within five
(5) business days after such second notice, then such request shall be deemed approved so long
as any structure or improvement to be erected or altered pursuant to such plans conforms to all
the conditions and restrictions herein contained and those contained in Architectural Guidelines
and is in harmony with similar structures erected within the Project. Notwithstanding the
foregoing, no Plans and Specifications for Improvements which violate the terms of this
Declaration, the Governing Documents or Architectural Guidelines shall be deemed approved or
permitted.
Section 4. Appeal. In the event Plans and Specifications submitted to the
Architectural Committee are disapproved, the party making such submission may appeal in
writing to the Board. The written request must be received by the Board not more than thirty
(30) days following the final decision of the Architectural Committee. The Board shall submit
such request to the Architectural Committee for comment and the Committee's written
comments will be submitted to the Board. Within thirty (30) days following receipt of the
request for appeal, the Board shall render its written decision. If the Board fails to render a
decision within this thirty (30) day period, the Owner submitting the request for appeal shall give
the Board a second written request for appeal. If the Board failsto render a decision within five
(5) business days after such second request, such failure shall be deemed a decision in favor of
the appellant; provided, however, that no Plans and Specifications for Improvements which
violate the terms of this Declaration, the Governing Documents or the Architectural Guidelines
shall be deemed approved or permitted.
Section 5. General Provisions. Operation of the Architectural Committee
shall be subject to the following general provisions:
(a) Review and approval by the Architectural Committee of Plans and
Specifications does not constitute approval of engineering design or compliance with law or City
requirements, and by approving such Plans and Specifications, neither the Architectural
Committee, the members thereof, the Association, the Members, the Board nor Declarant
assumes liability or responsibility therefore, or for any defect in any structure constructed from
such Plans and Specifications. Approval of Plans and Specifications by the Architectural
Committee does not relieve the Owner -applicant of the responsibility to obtain necessary
building permits and approvals from the City or other governmental authority having
jurisdiction, including, without limitation, those approvals specifically required by Article XXII,
Section 8 of this Declaration.
(b) The address of the Architectural Committee shall be the principal
office of the Association as designated by the Board pursuant to the Bylaws. Such address shall
be the place for submission of Plans and Specifications and the place where the current
Architectural Guidelines, if any, shall be kept. •
(c) The establishment of the Architectural Committee and the
procedures described herein for architectural approval shall not be construed as changing any
rights or restrictions upon Owners to maintain, repair, alter, modify or otherwise have control
over their Condominiums as may otherwise be specified in the Governing Documents.
♦ 4r \
Section 6. Nonapplicability to Declarant. The provisions of this Article shall
not apply to any Unit, Condominium Building, or to any other portion of the Project owned by
Declarant. In the construction, repair or replacement of Common Area Improvements, Declarant
shall have the right to modify plans and specifications for Common Area Irnprovements,
including the right to make on-site modifications (subject to on-site approval by building
inspectors of the City or other governmental authority having jurisdiction) which may not be
reflected in the plans and specifications for such Improvements.
Section 7. Reconstruction of Condominiums. The reconstruction of any
Condominium Building after destruction, which is accomplished in substantial compliance with
the recorded Condoininiun Plan covering the portion of the Covered Property in which such
Condominium Building is situated, shall not require compliance with the provisions of this
Article. Such reconstruction shall be conclusively deemed to be in substantial compliance with
such Condominium Plan if it has received the approval of the Board.
Section. 8. No Liability. Neither Declarant nor the Committee, nor any
member thereof, nor their duly authorized representatives, shall be liable to the Association or to
any Owner for any Ioss, damage or injury arising out of or in any way connected with the
performance of the Committee's duties hereunder, unless due to the willful misconduct or bad
faith of the Committee. The Committee's review of plans submitted to it may be based solely on
aesthetic considerations and the overall benefit or detriment which might result to the immediate
vicinity and the Project generally. The Committee will not be responsible for reviewing, and its
approval of any plan or design will not be deemed approval of, any such plan or design from the
standpoint of structural safety or conformance with building or other codes.
s6
ARTICLE XIII
RIGHTS OF INSTITUTIONAL HOLDERS OF MORTGAGES
The following provisions are for the benefit of Institutional Holders, insurers and
guarantors of first Mortgages on Condominiums within the Covered Property and shall apply
notwithstanding any provision to the contrary set forth elsewhere in this Declaration or the
Bylaws. These provisions apply only to "Eligible Holders" as defined below.
Section 1. Notices of Actions. Any Institutional Holder, insurer or guarantor
of a first Mortgage who provides written request to the Association, stating the name and address
of such holder, insurer or guarantor and the Condominium number, address or legal description
of the particular Condominium encumbered (thus becoming an "Eligible Holder"), will be
entitled to timely written notice of:
(a) Any default by the Owner of such Condominium in the
performance of such Owner's obligations under the Declaration or Bylaws which is not cured
within sixty (60) days from the date of such default;
(b) Any condemnation proceedings affecting the Project;
(c) Any substantial damage to or destruction of the secured
Condominium or any significant portion of the Common Area;
(d) Any proposed termination of the Association;
(e) Any lapse, cancellation or material modification of any insurance
policy or fidelity bond maintained by the Association; and
(f) Any proposed action which would require the consent of Eligible
Holders as further described in this Article.
Section 2. Rights of Institutional Holders Upon Foreclosure. Any
Institutional Holder of a first Mortgage on a Condominium which comes into possession of that
Condominium pursuant to judicial foreclosure or foreclosure by power of sale shall:
(a) Acquire title in such Condominium free of any claims for unpaid
assessments or charges against the Condominium accruing prior to the Institutional Holder's
acquisition of title, and
(b) Not be obligated to cure any breach of this Declaration which is
noncurable or of a type which is not practical or feasible to cure and which took place prior to
acquisition of title to the Condominium by the Institutional Holder.
Section 3. Consent offEligible Holders. The consent of Eligible Holders shall
be required in order to take the following actions with respect to the Association and rights and
obligations of Members and Eligible Holders.
DCO. cc&:R s.: cr.:
(a) Any restoration or repair of the Covered Property after a partial
condemnation or damage due to an insurable hazard shall require the approval of the Eligible
Holders holding first Mortgages on Condominiums that have at least fifty-one percent (51%) of
the votes of Condominiums subject to Eligible Holder Mortgages unless such restoration or
repair is substantially in accordance with this Declaration and the original plans and
specifications;
(b) Any election to terminate the Association after substantial
destruction or a substantial taking in condemnation shall require the approval of the Eligible
Holders holding Mortgages on Condominiums that have at least fifty-one percent (51%) of the
votes of Condominiums subject to Eligible Holder Mortgages;
(c) Unless at least seventy-five percent (75%) of the Owners (other
than Declarant) and EIigible Holders holding Mortgages on Condominiums that have at least
fifty-one percent (51%) of the votes of Condominiums subject to Eligible Holder Mortgages
have given their prior written approval, the Association and the Owners shall not be entitled to:
(i) change the pro rata interest or obligations of any Condominium for the purposes of levying
assessments and charges or allocating distributions of hazard insurance proceeds or
condemnation awards unless the change is due to the annexation of additional Phases as
authorized in this Declaration or is due to the damage or condemnation of Units changing the
number of Units in the Project; (ii) partition or subdivide any Unit or the Common Area; (iii) by
act or omission seek to abandon, partition, subdivide, sell or transfer the Common Area (the
granting of easements for public utilities or for other public purposes consistent with the intended
use of the Common Area of the Project shall not be deemed a transfer within the meaning of this
provision) unless due to the annexation of additional Phases as authorized in this Declaration;
(iv) use hazard insurance proceeds for losses to any portion of the Project (whether to Units or
the Common Area) for other than the repair, replacement or reconstruction of such
improvements, except as provided by statute in case of substantial loss to the Units and/or
Common Area of the Project.
Section 4. Amendments to Documents. The following provisions contained
in this Section do not apply to amendments to the Bylaws or this Declaration or termination of
the Association made as a result of destruction, damage or condemnation pursuant to subsections
(a) and (b) of Section 3 above, or to the addition of land in accordance with Article XVII and a
reallocation of interests in the Common Area which might occur pursuant to any plan of
expansion or phased development previously approved for the Project.
\tof (a) The consent of one hundred percent (100%) of the voting power of
the Association and the approval of the Eligible Holders of first Mortgages on Units to which at
least sixty-seven percent (67%) of the votes of Members owning Condominiums subject to such
encumbrances pertain, shall be required to terminate the Association.
(b) The consent of at least sixty-seven percent (67%) of the voting
power of Class A members, the consent of the Class B member, and the approval of Eligible
Holders holding first Mortgages on Condominiums that have at least fifty-one percent (51 %) of
the votes of the Condominiums subject to Eligible Holder Mortgages, shall be required in order
to add or amend any material provisions of the Governing Documents that establish, provide for,
govern or regulate any of the following: (i) voting rights; (ii) increases in assessments that raise
the previously assessed amount by more than twenty-five percent (25%), Assessment liens or the
priority or subordination of such liens; (iii) reductions in reserves for maintenance, repair dnd
replacement of the Common Area Improvements; (iv) hazard insurance or fidelity bond
requirements; (v) reallocation of interests in the Common Area or Exclusive Use Common Area
or rights to use the Common Area; (vi) responsibility for maintenance and repair of the Project;
(vii) expansion or contraction of the Project or the addition, annexation or withdrawal of
property to or from the Association (unless the change is due to the annexation of additional
phases or other rights of Declarant pursuant to Article XVII of this Declaration); (viii)
redefinition of boundaries of any Condominium Building or Unit (except in the event of
reconstruction of a Condominium Building or Unit pursuant to Article IX of this Declaration);
(ix) convertibility of Units into Common Area or Common Area into Units; (x) establishment of
self-management by the Association where professional management has previously been
required or for a project consisting of fifty (50) or more Units; (xi) restoration or repair of the
Project (after damage or partial condemnation) in a manner other than that specified in this
Declaration; or (xii) any provisions included in the Governing Documents which are for the
express benefit of Institutional Holders, Guarantors or Insurers of first Mortgages on
Condominiums. (Ai
Section 5. Additional Rights of Institutional Holders. Any Institutional
Holder of a Mortgage on a Condominium in the Project will, upon request, be entitled to:
(a) inspect the Governing Documents, the books and records and the financial statements of the
Association during normal business hours of the Association; (b) for projects consisting of fifty
(50) or more Condominiums, receive an annual audited financial statement of the Association
within 'one hundred and twenty (120) days following the end of any fiscal year of the
Association; (c) if no audited statement is available for Projects consisting of fewer than fifty
(50) Units, have an audited statement prepared at its own expense; (d) receive written notice of
all meetings of Owners and be permitted to designate a representative to attend all such
meetings, and (e) jointly or singly, pay taxes or other charges which are in default and which
may become a charge against the Common Area, and may pay any overdue premiums on hazard
insurance policies, or secure new hazard insurance coverage on the Common Area on the lapse
of such a policy, and Institutional Holders making such payments shall be owed immediate
reimbursement therefore from the Association.
Section 6. Information. Any Institutional Holder is authorized to furnish
information to the Board concerning the status of any loan encumbering a Condominium.
Section 7. Priority of Mortgage Lien. No breach of the covenants, conditions
or restrictions contained in this Declaration, nor the enforcement of any lien provisions created
herein, shall affect, impair, defeat or render invalid the lien of any first Mortgage made in good
faith and for value, but all of the covenants, conditions and restrictions shall be binding upon and
effective against any Owner whose title to a Condominium is derived through foreclosure,
trustee's sale, nr otherwise.
DEO CC&E.R 5.vei.i4 ;9
Section 8. Priority on Distribution of Proceeds. No Owner or any other party
shall have priority over the Institutional Holder of the Mortgage on such Owner's Condominium
in the case of a distribution of insurance proceeds or condemnation awards for losses to or a
taking of the Condominium or Common Area.
Section 9. Special FNMA-FHLMC Provisions. So long as required by The
Federal National Mortgage Association ("FNMA") or The Federal Horne Loan Mortgage
Corporation ("FHLMC"), the following provisions shall apply in addition to and not in lieu of
the foregoing provisions contained in this Article.
(a) Unless two-thirds (2/3) of the Institutional Holders of first
encumbrances or Owners of Condominiums subject to such encumbrances give their consent, the
Association shall not: (i) by act or omission seek to abandon, partition, subdivide, encumber,
sell or transfer the Common Area which the Association owns, directly or indirectly; (ii) change
the method of determining the obligations, assessments, dues or other charges which may be
levied against an Owner; (iii) by act or omission change, waive or abandon any scheme of
regulations or enforcement thereof pertaining to the architectural design or the exterior
appearance and maintenance of the Condominium Buildings and the Common Area; (iv) fail to
maintain fire or extended coverage insurance, as required by this Declaration; or (v) use hazard
insurance proceeds for any Common Area losses for other than the repair, replacement or
reconstruction of such Property.
.111)N
(b) The Association agrees to give written notice to the FHLMC or its
designated representative of any loss to, 'or taking of, the Common Area if such loss or taking
exceeds Twenty -Five Thousand Dollars ($25,000.00) or damage to a Condominium covered by a
first Mortgage purchased in whole or in part by the FHLMC which damage exceeds Five
Thousand Dollars ($5,000.00).
(c) If any loan secured by a Mortgage encumbering a Condominium is
owned by the FHLMC, its successors or assigns or is tendered to FHLMC, its successors or
assigns for purchase, the Association and the Owners shall obtain and maintain in full force and
effect all insurance coverages which may at any time be required by FHLMC, its successors or
assigns and shall otherwise comply in all respects with all insurance requirements of FHLMC
which may be in effect at any time.
Section 10. Consent. An Eligible Holder which receives a written request to
consent to an amendment or to any other action to which the Eligible Holder's consent is
required or permitted by this Declaration, and which does not respond negatively within thirty
(30) days after having received proper notice of the proposed amendment and request, provided
the notice was delivered by certified or registered mail, return receipt requested, shall be
conclusively deemed to have irrevocably consented to the amendment or other action.
L)hU,(.[.&k s.ver.14 60
ARTICLE XIV
ENFORCEMENT OF BONDED OBLIGATIONS
(11
In the event that the Improvements to the Common Area of the Project haveS.t
been completed prior to the issuance of a Public Report for the Covered Property and the
Association is obligee under a bond or other arrangement (the `Bond") to secure performance of
the commitment of Declarant to complete such Improvements, the following provisions shall
apply:
(a) The Board shall consider and vote on the question of action by the
Association to enforce the obligations under the Bond with respect to any Improvements for
which a Notice of Completion has not been filed within sixty (60) days after the completion date
specified for such Improvement in the Planned Construction Statement appended to the Bond. If
the Association has given an extension in writing for the completion of any Common Area
improvement, the Board shall consider and vote on the aforesaid question if a Notice of
Completion has not been filed within thirty (30) days after the expiration of such extension.
(b) In the event that the Board determines not to initiate action to
enforce the obligations under the Bond, or in the event the Board fails to consider and vote on
such question as provided above, the Board shall call a special meeting of the Members for the
purpose of voting to override such decision or such failure to act by the Board. Such meeting
shall be called according to the provisions of the Bylaws dealing with meetings of the Members,
but in any event such meeting shall be held not less than thirty-five (35) days nor more than
forty-five (45) days after receipt by the Board of a petition for such meeting, signed by Members
representing not less than five percent (5%) of the total voting power of the Association.
(c) The only Members entitled to vote at such meeting shall be the
Owners other than Declarant. A vote at such meeting of a majority of the voting power of such
Members, other than Declarant, to take action to enforce the obligations under the Bond shall be
deemed to be the decision of the Association and the Board shall thereafter implement such
decision by initiating and pursuing appropriate action in the name of the Association.
DEO CCS R.'n..i.14
6]
ARTICLE XV
EMINENT DOMAIN
Section 1. Definition of Taking. The term "taking" as used in this Article
shall mean condemnation by eminent domain, or by sale under threat thereof, of all or part of the
Proj ect.
Section 2. Representation by Association in Condemnation Proceeding. In
the event of a taking, the Association shall, subject to the right of all Institutional Holders who
have requested the right to join the Association in the proceedings, represent all of the Members
in an action to recover all awards. No Member shall challenge the good faith exercise of the
discretion of the Board's actions on behalf of the Association in fulfilling its duties under this
Article. The Association is further designated as the sole representative of the Members in all
aspects of condemnation proceedings not specifically covered herein.
Section 3. Award for Condominiums. In the event of a taking of
Condominiums, the Association shall distribute the award from the taking authority according to
the provisions of this Section after deducting therefrom fees and expenses related to the
condemnation proceeding including, without limitation, reasonable fees for attorneys and
appraisers and court costs. In the event that the taking is by judgment of condemnation and said
judgment apportions the award among the Owners and their respective Institutional Holders, the
Association shall distribute the amount remaining after such deductions among such Owners and
Institutional Holders on the allocation basis set forth in the judgment. In the event that the taking
is by sale under threat of condemnation, or if the judgment of condemnation fails to apportion
the award, the Association shall distribute the award among the Owners based upon the
proportionate fair market value that each of the taken Condominiums bears to the total fair
market value of all Condominiums in the Project so taken. The value of the respective Units for
purposes of this Section shall be based upon the relative estimated value of each Condominium
as determined by the Association based on an appraisal prepared by an appraiser who is a M.A.I.
member of the American Institute of Real Estate Appraisers. Nothing contained herein shall
entitle an Owner to priority over the Institutional Holder of the Mortgage on his or her
Condominium as to the portion of the condemnation award allocated to his or her Condominium.
Section 4. Inverse Condemnation. The Association is authorized to bring an
action in inverse condemnation. In such event, the provisions of this Article shall apply with
equal force.
Section S. Awards for Owners' Personal Property and Relocation
Allowances. In the event of a taking, each Owner shall have the exclusive right to claim any
award made for his or her personal property, and any relocation, moving expense, or other
allowance of a similar nature designed to facilitate relocation. The Association shall
nevertheless represent each Owner in any action to recover all awards with respect to any
personal property which may, at the time of the taking, be part of the real estate comprising any
Condominium, and shall allocate to such Owner so much of any awards as is attributed in the
DEC CC&R',.vvv.;4
62
taking proceedings, or failing such attribution, attributable by the Association to such personal
property.
Section 6. Notice to Members. The Association, upon having knowledge o
any taking or threat thereof, shall promptly notify all Members.
ARTICLE XVI
OWNERSHIP AND EASEMENTS
Section 1. Ownership of Condominium. Title to each Condominium in the
Project shall be conveyed in fee to an Owner. Ownership of each Condominiurn in the Project
shall include (a) a Unit, (b) an undivided interest in the Building Common Area of the
Condominium Building within which the Unit is situated as designated on the Condominium
Plan, (c) a membership in the Association; (d) an exclusive easement over any Exclusive Use
Common Area appurtenant to such Condominium as described in this Declaration and/or the
Condominium Plan and/or the deed from Declarant conveying the Condominium, and (e)
easements over the Association Common Area as described in this Declaration, which each
Owner shall have, subject to the terms and provisions of this Declaration and the other
Governing Documents.
Section 2. No Separate Conveyance. The interest of each Owner in the use
and benefit of the Association Common Area and the Building Common Area shall be
appurtenant to the Unit owned by the Owner. No Condominium shall be conveyed by the Owner
separately from the interest in the Building Common Area or the right to use the Association
Common Area, Any conveyance of a Unit shall automatically transfer the interest in the
Building Common Area and the right to use the Association Common Area without the necessity
of express reference in the instrument of conveyance. Anything in the Section hereof entitled
"Amendments," to the contrary notwithstanding, this Section shall not be amended, modified or
rescinded until Declarant has conveyed the last Condominium within the Project without (i) the
prior written consent of Declarant, and (ii) the recording of said written consent in the office of
the Riverside County Recorder.
Section 3. Delegation of Use. Any Owner entitled to the right and easement
of use and enjoyment of the Association Common Area within the Project may delegate such
Owner's rights provided in this Declaration to the use and enjoyment of such Association
Common Area to his or her purchasers under installment land sale contracts or renters who
reside in such Owner's Unit, subject to reasonable regulation by the Board. An Owner who has
made such a delegation of rights shall not be entitled to the use or enjoyment of the Association
Common Area or the Recreational Amenities therein for so long as such delegation remains in
effect, other than access rights necessary for the Owner to exercise its rights and duties as
landlord. Notwithstanding the foregoing, any Owner of a Lock -Off Unit may delegate such
Owner's rights in the Common Area as follows: (a) any Owner who resides in a portion of the
Lock -Off Unit shall be entitled to the use and enjoyment of the Association Common Area and
the Recreational Amenities in addition to such rights delegated to renters of the other portion of
the Lock -Off Unit, and (b) any Owner who rents both portions of a Lock -Off Unit may delegate
such rights to the renters of each portion of the Lock -Off Unit.
Section 4. Partition. Except as provided in this Declaration, there shall be no
judicial partition of the Association Common Area or the Building Common Area, or any part
thereof, for the tenn of the Project, nor shall Declarant, any Owner or any other person acquiring
any interest in any Condominiurn in the Project seek any such judicial partition. The undivided
DFO'CC&R'z.,;e5.14 64
interest in the Building Common Area described herein may not be altered or changed as long as
the prohibition against severability of interests in a Condominium remains in effect as provided
in this Declaration,
Section 5. Easements. The ownership interests in the Building Common
Area, the Association Common Area and the Units described in this Article are subject to the
easements of record and those granted and reserved in this Declaration, including, without
limitation, the easements in the Exclusive Use Common Area described in this Declaration.
Each of the easements reserved or granted under this Declaration shall be deemed to be
established upon the recordation of this Declaration and shall henceforth, be deemed to be
covenants running with the land for the use and benefit of the Owners, their Condominiums, the
Association, the Association Common Area, the Building Common Area and the Declarant,
superior to all other encumbrances thereafter applied against or in favor of any portion of the
Project. Individual grant deeds to Condominiums may, but shall not be required to, set forth the
easements specified in this Article.
Section 6. Declaration Subject to Easements. Notwithstanding anything
herein expressly or impliedly to the contrary, this Declaration and the Project shall be subject to
all easements shown on the final subdivision map for the Project; to all casements heretofore or
hereafter granted by Declarant for the installation and maintenance of utilities and drainage
facilities that are necessary for the Project, and to the access rights in favor of the City as
described in Article XXII, Section 22 of this Declaration.
Section 7. Utilities. Easements over the Project for the installation and
maintenance of electric, telephone, water, gas and sanitary sewer lines and facilities and any
other utilities, cable television and high-speed internet lines (to service the Project, including,
without limitation, the Units, the Clubhouse, and the Rental Program Facilities, including the
Management Services Desk), and drainage facilities, as shown on the recorded map of the
Project and as may be hereafter required or needed to service the Project, are hereby created by
Declarant for the benefit of each Owner and the Association.
Wherever sewer connections, water connections, electricity, gas, telephone, cable
television lines and facilities, high-speed internet lines and facilities, drainage facilities or other
utilities are installed within the Project, the Owners of Condominiums served by such
connections, lines or facilities shall have an easement or right to the full extent necessary for the
use and enjoyment of that portion of the connections which service his or her Condominium, and
to have utility companies enter upon the Association Common Area or Building Common Area,
in or upon which said connections, lines or facilities, or any portion thereof lie, to repair, replace
and generally maintain those connections necessary, provided that such Owner or utility
company shall promptly repair any damage to the Association Common Area or Building
Common Area caused by such entry. The Owner of a Condominium shall have reasonable
access to the Association Common Area and/or Building Common Area for the purpose of
maintaining the internal and external telephone wiring, which is Exclusive Use Corrunon Area
appurtenant to his or her Condominium. The access described in this paragraph is subject to the
consent of the Association, whose approval shall not be ummeasonably withheld, pursuant to
California Civil Code Section 1364(t).
UEu CC&R s.v r.i4 65
Section S. Encroachment. Declarant, its successors and assigns, and all future
Owners, by acceptance of their respective deeds, covenant and agree as follows:
(a) If any portion of the Common Area encroaches upon the Units,
either as originally built, or in the event a Unit is partially or totally destroyed and then rebuilt,
and if minor variances therefore exist between physical boundaries of the Unit and boundaries
shown on a deed or the Condominium Plan, it shall be conclusively presumed that the physical
boundaries are the correct boundaries.
(b) The Common Area and each Unit is and shall always be subject to
easements for minor encroachments thereon by the Units as a result of construction,
reconstruction, repairs, shifting, settlement or movement of any portion of the Project, and if
minor variances therefore exist between physical boundaries of the Common Area and the Units,
or the physical boundaries between the Units, and the boundaries shown on a deed or the
Condominium Plan, it shall be conclusively presumed that the physicalboundaries are the
correct boundaries.
Section 9. Common Area Easements. Subject to the provisions of this
Declaration and any Exclusive Use Common Area appurtenant to a Unit, each Condominium in
the Project is hereby declared to have a nonexclusive easement over the Association Common
Area, for the benefit of the Condominium, the Owner thereof, and for such Owner's respective
family, invitees and renters, for ingress, egress and support (if necessary), and for the use and
enjoyment of, in, to and over the Association Common Area within the Project, except that no
Owner shall have the right of access to any rooftop areas, any mechanical or operating areas, any
equipment rooms, any Rental Program Facilities, or any other areas within the Project to which
access has been restricted by this Declaration or by the Association, and such easement shall be
appurtenant to and shall pass with title to every Condominium. Each Owner acknowledges that
such easement rights include the right of each Owner to use the Private Drives, pedestrian
walkways, and the Recreational Amenities which are situated throughout the Project, subject to
the Association Rules and the provisions of this Declaration, including, without limitation, the
following:
(a) Suspend Rights of Members. The Board shall have the right, after
Notice and Hearing, to temporarily suspend an Owner's rights as a Member (and those claiming
under such Owner) pursuant to the terms of this Declaration.
(b) Dedicate or Grant Easements. The Association shall have the right
to dedicate and/or grant easements over all or any portion of the Association Common Area.
(c) Control Parking. The Association shall have the right to assign,
license or otherwise designate and control parking within the Project, and to promulgate
Association Rules to control parking in a manner consistent with this Declaration. In no event,
however, shall parking fees he charged nor shall such Association Rules discriminate between
Owners and renters.
(d) Entry by Association. The Association and the Association's
agents shall have the right to enter upon the Units and any Exclusive Use Common Area
LUEO,CCSLiZ i 4
uG•
appurtenant to the Units after Notice and Hearing (except in the event of an emergency in which
ease no prior notice need be given) to enforce the provisions of this Declaration or perform it
maintenance, repair and other obligations under this Declaration.
(e) Limit Invitees. Subject to the rights of the Operator of the Resort
Rental Program and the written consent of the Declarant during the Declarant's Consent Period,
the Association shall have the right to limit, on a reasonable basis, the number of invitees of the
Owners using the Recreational Amenities and other facilities situated within the Association
Common Area. Any such limitations or restrictions shall be set forth in the Association Rules
and shall not discriminate between Owners and renters. `,
(f) Restricted Areas. Subject to the rights of the Operator of the
Resort Rental Program and the written consent of the Declarant during the Declarant's Consent
Period, the Association shall have the right to restrict access to certain areas of the Project,
including the roof, utility rooms, equipment rooms, Rental Program. Facilities, and other areas
deemed by the Association to be unsafe or inappropriate for entry.
Section 10. Exclusive Use Easements. Each Owner in the Project is hereby
declared to have an exclusive easement over the Exclusive Use Common Area, if any,
appurtenant to the Owner's Unit, as set forth in the recorded Condominium Plan in which the
Owner's Unit is described and depicted, or as otherwise described in this Declaration or in a
Supplemental Declaration, for the benefit of the Condominium, the Owner thereof, and for such
Owner's family, invitees and renters.
Section 11. Interim Easements to Owners. Subject to the covenants,
conditions, restrictions and easements contained in this Declaration and the Association Rules,
non-exclusive easements in and to the Clubhouse and the Entry Improvements are reserved and
granted to each Owner in the Project. Such easements shall be in substantially the same form as
Exhibits "C-1" and "C-2" attached hereto.
Section 12. Association Easement. There is hereby reserved and granted to the
Association and its agents, employees, contractors and designees, an easement over the Project,
including, without limitation, the Association Common. Area, the Building Common Area and
the Units, for maintenance, operation, repair, restoration and replacement of the Project and for
performing its duties and exercising its powers described in this Declaration,
Section 13. Construction and Sales Easements. Declarant hereby reserves
nonexclusive easements over the Project and all Phases thereof for construction, maintenance,
repair and replacement, development, display, sales and exhibit purposes in connection with the
construction and sale or lease of Units within the Project (including construction, maintenance,
repair and replacement of Common Area Improvements), together with the right to grant and
transfer some or all of the same to Declarant's contractors, sales agents, designees and
representatives and prospective purchasers of Condominiums; provided, however, that such use
shall not be for a period beyond the earlier of (i) ten (10) years from the conveyance of the first
Unit by Declarant pursuant to a Public Report or (ii) one (1) year after the conveyance by
Declarant of all Units within the Project. For the purposes of this Section a "Phase" shall be
' deemed to be the last parcel, lot or Module anticipated to be developed with Units on the
6'7
Covered Property, if no portion of another Phase is annexed to the Covered Property within the
ten (10) year period following the issuance 'of the first Public Report for the sale of
Condominiums within such Phase. The easements reserved hereby shall specifically include the
right to maintain sales offices in model Units and/or temporary modular facilities at such location
or locations throughout the Project as Declarant may deem appropriate, including, without
limitation, the right to place signs including, without limitation, signs advertising Condominiums
for sale, and the right to maintain temporary utility poles, lines and other facilities throughout the
Project. The easements reserved hereby specifically include easements over the Common Area
for common driveway purposes, for drainage and encroachment purposes, and for ingress to and
egress from the Common Areas for the purpose of completing Improvements thereon or for the
performance of necessary repair work and for entry onto adjacent property in connection with the
development of additional Phases of the Project.
Section 14. Easements for Resort Rental Program Services. Declarant has
reserved, in Article XXI, Section 2 of this Declaration, an easement for the use of those portions
of the Clubhouse and the Project for the operation of the Management Services Desk and Rental
Program Facilities and perfoinnance.of functions relating to the Resort Rental Program described
in Article XXI of this Declaration. Notwithstanding anything to the contrary set forth in this
Declaration, in no event may such easement be modified or amended without the prior written
consent of Declarant until the later to occur of the following: (i) the expiration of Declarant's
Consent Period, and (ii) the assignment by Declarant to the Association of its rental management
obligations as specified in Article XXII, Section 7 of this Declaration.
Section 15. Entry Gates. Declarant shall have the right to exercise control over
the entry gates which may be situated within the Covered Property until all Units in the Project
have been conveyed to Owners under a Public Report or until Declarant, in its sole discretion,
determines that the Association should take responsibility for control, maintenance and repair of
some or all of the entry gates. The Association's obligation shall commence immediately upon
receipt of written notice from the Declarant identifying the entry gates to be thereafter controlled
and maintained by the Association. Notwithstanding who has responsibility for the entry gates,
Declarant shall be entitled to have the entry gates remain open during regular business hours
(including weekends and holidays) in order to conduct sales. The presence of entry gates on the
Project is not a warranty or representation by Declarant that any security is being provided to any
Owner or to any Owner's Unit or personal property. Notwithstanding anything to the contrary
set forth in this Declaration, in no event may this provision be modified or amended during the
Declarant's Consent Period without the consent of Declarant.
`moi Section 16. Inspection Easements. Declarant hereby reserves a nonexclusive
easement over the Project and all Phases thereof for the purpose of insuring that the Association
operates and maintains the Project in accordance with the Association's Common Area
Maintenance Manual and the Operations Manual and complies with its operations, maintenance,
repair and restoration obligations set forth in this Declaration. In addition, the Declarant shall
have the right to inspect the books, records, budgets and financial statements of the Association
during normal business hours or under other reasonable circumstances.
Section 17. Establishment of Easements and/or Rights. The easements and
rights of exclusive or nonexclusive use described in this Declaration shall be deemed established
upon the recordation of this Declaration, and shall thereafter be considered covenants running
with the land for the use and benefit of all of the Condominiums and the Common Area, superior
to all other encumbrances affecting any portion of the Project. Individual conveyances of
Condominiums may, but shall not be required to, set forth such easements or rights.
Section 18. No Easement for Light. Air and View. No Owner shall have an
easement for light, air or view over the Unit of another Owner or over the Common Area, and no
diminution of light, air or view by any building or other Improvement now existing or hereafter
erected shall entitle the Owner or anyone claiming an interest through or under Owner to claim
any easement for light, air or view within the Project.
(6*
\'‘()
nFnrrr,e•R ver 1a F4
ARTICLE XVII
INTEGRATED NATURE OF THE COVERED PROPERTY
Section 1. Development of the Project. Declarant intends to develop the
Project in Phases, annexing the property described in Exhibit "B-1." Declarant has submitted to
the California Department of Real Estate a plan for phased development, which provides that the
proposed annexation will not result in an overburdening of the Common Area. However,
Declarant may elect not to develop all or any part of any Phase, to develop the Project in Phases
of any size whatsoever, or to develop more than one Phase at any given time and in any given
order.
Declarant reserves the right to subject all or any portion of a Phase to the plan of
this Declaration or of one or more separate declarations of covenants, conditions and restrictions
which subject such property to the jurisdiction and powers of a homeowners association or other
entity with powers and obligations similar to the Association and which is not subject to the
provisions of this Declaration. Although Declarant shall have the ability to annex the real
property described in Exhibit "B-1," Declarant shall not be obligated to annex all or any portion
of such property. Annexed property shall not become subject to this Declaration unless and until
a Supplemental Declaration describing such property is executed and recorded.
Declarant further reserves the right to annex all or any part of certain real
property, not currently owned by Declarant, described in Exhibit "8-2". Prior to annexing all or
part of the property described in Exhibit "B-2", Declarant shall have submitted to the California
Department of Real Estate a plan covering such property which provides that the proposed
annexation will not result in an overburdening of the Common Area. The issuance of a Final
Subdivision Public Report by the California Department of Real Estate covering any property
described in the foregoing sentence shall conclusively deemed to be satisfaction of Declarant's
obligation under the foregoing sentence. Although Declarant shall have the ability to annex the
real property described in Exhibit "B-2", Declarant shall not be obligated to annex all or any
portion of such property. Such property shall not become subject to this Declaration unless and
until a Supplemental Declaration describing such property is executed and recorded.
Section 2. Annexation Without Approval and Pursuant to Plan. All or any
part of the property described in Exhibits "B-1" and "B-2" may be annexed to and become
subject to this Declaration and the jurisdiction of the Association without the approval, assent or
vote of the Association or its Members, or Institutional Holders, provided that a Supplemental
Declaration, covering the portion of the property described in Exhibits "B-1" and "B-2" sought
to be annexed, is executed and recorded by Declarant, The Association is obligated to accept
any and all conveyances to it by Declarant of fee simple title, easements or leases to all or
portions of the property described in Exhibits "B-1" and "B-2". The recordation of a
Supplemental Declaration shall constitute and effectuate the annexation of the real property
described therein, making that property subject to this Declaration and the jurisdiction of the
Association, and thereafter the annexed property shall be part of the Covered Property and all
Owners of Condominiums in the annexed property shall automatically be Members of the
Association.
DFC1%CC&R's ver 14 711
Should Declarant undertake a rental program in any annexed Phase (for
Condominiums owned by Declarant), and should that program remain in effect for a period of at
least one (1) year prior to the date of the close of escrow for the first sale of a Condominium
within that annexed Phase, Declarant shall execute a written commitment to pay to the
Association, concurrently with the closing of such first escrow for a sale of a Condominium in
the annexed Phase, appropriate amounts for reserves for replacement or deferred maintenance of
Common Area Improvements in such annexed Phase necessitated by or arising out of the use and
occupancy of Units under such a rental program.
Section 3. Annexation Pursuant to Approval. Upon approval in writing of the
Declarant during the Declarant's Consent Period and the vote or written assent of two-thirds
(2/3) of the Members other than Declarant, the Association may record a Supplemental
Declaration to add property, other than the property described on Exhibits `B-1" and `B-2", to
the plan of this Declaration and to subject such property to the jurisdiction of the Association.
Section 4, Supplemental Declarations. The annexations authorized under the
foregoing sections shall be made by recording a Supplemental Declaration of Covenants,
Conditions and Restrictions, or similar instrument, describing the property which is being
annexed. Such Supplemental Declarations may contain complementary additions and
modifications of the covenants, conditions and restrictions contained in this Declaration as
necessary to reflect the different character or intended use, if any, of the annexed property and as
are not inconsistent with the plan of this Declaration. Without limiting the foregoing, such
complementary additions and modifications may include, without limitation, the establishment of
a vacation club, residence club or similar program as described in Section 13, Article XIX, which
program shall not be deemed to be inconsistent with the overall plan of development set forth in
this Declaration.
Section S. Mergers or Consolidations. Upon a merger or consolidation of the
Association with another association, the Association's properties, rights and obligations may, by
operation of law, be transferred to the surviving or consolidated association, or, alternatively, the
properties, rights and obligations of another association may, by operation of law, be added to
the properties, rights and obligations of the Association as a surviving corporation. The
surviving or consolidated association may administer the covenants, conditions and restrictions
established by this Declaration within the Covered Property; together with the covenants and
restrictions established upon any other property as one plan.
Section 6. Right of De -Annexation. Declarant reserves the right to de -annex
any property which may be annexed to the Project pursuant to Section 2 of this Article and to
delete such property from the common plan described herein and from the jurisdiction of the
Association. Such deannexation shall be effected prior to the conveyance of any Condominium
within the property to be deannexed.
nFnrCRR°tvrr14 �f
ARTICLE XVIII
ENFORCEMENT
Section 1. Enforcement and Nonwaiver,
(a) Rights of Enforcement of Governing Documents. The Association
and/or any Owner shall have a right of action against any Owner, and any Owner shall have a
right of action against the Association, to enforce by proceedings at law or in equity, all
covenants, conditions and restrictions, now or hereafter imposed by the provisions of the
Governing Documents or any amendment thereto, including, without limitation, the right to
prevent the violation of such covenants, conditions or reservations and the right to recover
damages or other amounts for such violation except that Owners shall not have any right of
enforcement concerning Assessment liens. The Association shall have the exclusive right to the
enforcement of provisions relating to collection of assessments, architectural control and the
Association Rules. Failure of the Association, Declarant or any Owner to enforce any covenants
or restrictions herein contained shall in no event be deemed a waiver of the right to do so
thereafter.
(b) Procedure for Enforcement. Notwithstanding anything to the
contrary set forth in subsection (a) above, in enforcing any action under the Governing
Documents for monetary damages, the parties shall comply with the provisions of California
Civil Code Section 1354 and any successor statute or law. The Board shall annually provide to
the Members a summary of the provisions of California Civil Code Section 1354 and any
successor statutes or laws, which shall include the language required and shall be delivered in the
manner provided in Civil Code Section 1365. The exception for disputes related to Association
Assessments set forth in Section 1354 shall not apply to disputes between a Member and the
Association regarding Assessments imposed by the Association, if the Member chooses to pay in
full to the Association all of the Assessments as specified in California Civil Code Section
1366.3 and any successor statutes or laws.
Section 2. Notice of Actions Against Declarant. The Association shall
comply with the provisions of Civil Code Section 1368.4 and any successor statutes or laws,
prior to the filing of any civil action by the Association against the Declarant or other developer
of the Project for either alleged damages to the Common Area or other property within the
Project that the Association is obligated to maintain or repair, or alleged damage to any other
portion of the Project that arises out of, or is integrally related to, such damage to the Common
Area or other property within the Project that the Association is obligated to maintain or repair.
Such notice shall specify all of the matters, set forth in Section 1368.4 and any successor statutes
or laws.
DEO!C'C &.R's v,r 14 77
ARTICLE XIX
GENERAL PROVISIONS
Section 1. Severability of Covenants. Invalidation of any one of these
covenants or restrictions by judgment or court order shall not affect any other provisions which
shall remain in full force and effect.
Section 2. Term. The covenants and restrictions of this Declaration shall run
with and bind the Covered Property and the Project, and shall inure to the benefit of and be
enforceable by the Association or the Owners, their legal representatives, heirs, successors and
assigns until sixty (60) years after the date this Declaration is recorded, after which date they
shall automatically be extended for successive periods of ten (10) years, unless an instrument
signed by seventy-five percent (75%) of the then Owners and their respective Institutional
Holders has been recorded (i) within the year preceding the end of the original sixty (60) year
period, or (ii) within theyear preceding the beginning of each successive period of ten (10)
years, agreeing to terminate this Declaration.
Section 3. Construction. The provisions of this Declaration shall be liberally
construed to effectuate its purpose of creating a uniform plan for the development and operation
of a phased Common Interest Development consisting of a Condominium project and for the
maintenance of the Recreational Amenities and Common Areas. In case of any conflict between
this Declaration and the Articles or Bylaws of the Association, this Declaration shall control.
The article and section headings have been inserted for convenience only and shall not be
considered or referred to in resolving questions of interpretation or construction.
Section 4. Amendments. Subject to the rights of Institutional Holders
described in Article XIII above, this Declaration may be amended only by the affirmative assent
or vote of both (i) sixty-seven percent (67%) of the voting power of the Association, including
the voting power of the Declarant, and (ii) sixty-seven percent (67%) of the voting power of
Members other than Declarant; provided, however, that the percentage of voting power
necessary to amend a specific clause or provision shall not be less than the percentage of
affirmative votes prescribed for action to be taken under that clause; provided further, that if the
three -class voting structure as provided by this Declaration is still in effect, this Declaration may
not be amended without the vote or written assent of sixty-seven percent (67%) of the voting
power of Class A Members and the written consent of the Class B Member.
In the event that a majority of votes required cannot be obtained in favor of an
amendment, the Association, or any Owner may petition the Superior Court of the County for an
order reducing the percentage of affirmative votes required. The filing of any such petition shall
be in compliance with the procedures set forth in California Civil Code Section 1356.
Notwithstanding any other provision of this Declaration, in the event that any
further modification of this Declaration is required in order to comply with requirements of
governmental or quasi -governmental corporations or agencies such as the Veterans
Administration (VA), Federal Housing Administration (FHA), Government National Mortgage
Association (GNMA), Federal National Mortgage Association (FNMA), Federal Home Loan
Mortgage Corporation (FHLMC) or the like, such modifications may be effected by an
amendment executed and recorded by the Class B member alone. Such modifications shall be
for the benefit of and not impose any increased burden upon the Owners. Any such
modifications to this Declaration shall also require approval by the California Department of
Real Estate, 4. .1
This amendment provision shall not be amended to allow amendments by the
assent or vote of Iess than the prescribed percentage of voting power required for amendments
hereof except by court order as set forth above. An amendment or modification shall be
effective when executed and acknowledged by the Secretary of the Association, who shall certify
that the amendment or modification has been approved as provided herein, and recorded in the
official records of the County. No amendment or modification of this Declaration which would
adversely affect the rights of the City or other governmental authority having jurisdiction to
enforce the terms and provisions of this Declaration as they relate to the maintenance of the
Common Area, structures and landscaping within the Project, terminate or materially impair the
powers and duties of the Association as set forth in this Declaration, or interfere with the rights
of ingress and egress to any Unit or the Common Area shall be effective without the prior written
consent of the Nanning Director of the City or other governmental authority having jurisdiction.
This Declaration may be amended by the Board and the Owners in accordance
with California Civil Code Section 1355.5, in order to delete provisions relating to construction
or marketing, at such time as such provisions are no longer operative for the benefit of Declarant
or any successor, all in accordance with the provisions of such section.
The Association may amend this Declaration in order to correct a scrivener's error
or other defect or omission by the affirmative vote of two-thirds (2/3) of the Board without the
consent of the Members, provided that such amendment does not materially and adversely affect
the rights of Owners, Institutional Holders or others holding liens or mortgages on any portion of
the Project. Any such amendment shall be signed by the President and Secretary of the
Association, and shall be recorded in the Official Records of the County. Copies of such
recorded amendment shall be sent to all Owners and Institutional Holders,
In the event that the Project receives VA project approval, any amendment to this
Declaration or the other Governing Documents, excluding the amendments to add Phases, while
Declarant is in control of the Association must be approved by the Veterans Administration.
Section 5. Dissolution. Except as expressly provided to the contrary in this
Declaration, so long as there is any Condominium for which the Association is obligated to
provide management, maintenance, preservation or control, the Association may be dissolved or
may transfer all or substantially all of its assets only by the approval by written vote of one
hundred percent (100%) of the total voting power of Members.
Section 6. Nonliability of Officials. To the fullest extent permitted by law,
neither the Board, the Architectural Committee, any other committees of the Association or any
member of such Board or committee shall be liable to any Member of the Association for any
damage, loss or prejudice suffered or claimed on account of any decision, approval or
disapproval of plans or specifications (whether or not defective), course of action, act, omission.
error, negligence or the like made in good faith within which such Board, committees or persons
reasonably believed to be the scope of their duties.
Section 7. Information to Owners and Disclosure to Prospective Purchasers,
(a) Information Provided by Association to Owners. Within ten (10)
days after the mailing or delivery of a written request by any Owner, the Board shall provide the
Owner with a written statement containing the following infolnration: (i) whether, to the
knowledge of the Association, the Owner or the Owner's Condominium is in violation of any of
the provisions of this Declaration, the Articles, Bylaws, or Association Rules; (ii) the amount of
Regular and Special Assessments, including installment payments, paid by the Owner during the
fiscal year the request is received; (iii) the amount of any Assessments levied against the
Owner's Condominium that are unpaid as of the date of the statement, including any late
charges, interest, or costs of collection that as of the date of the statement are or may. be made a
lien against the Owner's Condominium as provided by this Declaration, the Articles, Bylaws, or
Association Rules; and (iv) any change in the Association's current Regular and Special
Assessments and fees approved by the Board but not yet due and payable as of the date of the
disclosure. In addition, the Association shall, within ten (10) days after the mailing or delivery
of a written request by any Owner, provide copies of any Association documents requested by
the Owner. The Association may charge a fee for this service, which shall not exceed its
reasonable cost to prepare and reproduce such items.
(b) Disclosure Information Provided by Owner to Prospective
Purchaser. Bach Owner of a Separate Interest, other than Declarant, shall, as soon as practicable
before transfer of title to the Separate Interest or execution of a real property sales contract
therefore, provide the following to the prospective purchaser:
(.i) A copy of the Governing Documents;
(ii) If there is a restriction in the Governing Documents
limiting the occupancy, residency or use of a Separate Interest on the basis of age in a manner
different from that provided in Section 51.3 of the California Civil Code, a statement that the
restriction is only enforceable to the extent permitted by Section 51.3 and specifying the
applicable provisions of Section 51.3;
(iii) A copy of the most recent documents distributed to the
Members pursuant to the Bylaws and California Cavil Code Section 1365, which documents are
described in the Bylaws;
(iv) A true statement in writing from an authorized
representative of the Association as described in subparagraph (a) of this Section; and
(v) If applicable, and in accordance with California Civil Code
Section 1368 (a)(6) and (a)(7), a copy of the preliminary list of defects provided to each Member
of the Association pursuant to California Civil Code Section 1375 (pertaining to actions for
damages against common interest development builders, developers or general contractors) and,
if applicable, a copy of the latest information provided for in California Civil Code Section
1375.1 (pertaining to settlement agreements regarding alleged defects in the common areas).
(c) Transfer Costs. Except as otherwise expressly set forth in this
Declaration, the Association shall not impose or collect any assessment, penalty, or fee in
connection with the transfer of title or any other interest, except the Association's actual costs to
change its records and those fees authorized by subsection (a) above.
(d) Liability for Failure to Disclose. The provisions of this Section are
in accordance with California Civil Code Section 1368, which provides that any person or entity
who willfully violates Section 1368 shall be liable to the purchaser of a Separate Interest which
is subject to this Section for actual damages occasioned thereby and, in addition, shall pay a civil
penalty in an amount not to exceed Five Hundred Dollars (5500.00). In an action to enforce this
liability, the prevailing party shall be awarded reasonable attorney's fees.
(e) Valid Title. Nothing in this Section affects the validity of title to
real property transferred in violation of this Section.
(f) Other Disclosure Requirements. The requirements contained in
this Section are in addition to the requirements of California Civil Code Sections 1133 and 1134
which may impose additional disclosure requirements upon a transferring Owner.
Section 8. Violation of Declaration. The result of every act or omission,
whereby any provision, condition, restriction, covenant, easement, right or reservation contained
in this Declaration is violated is hereby declared to be and constitute a nuisance, and every
remedy allowed by law or equity against a nuisance, either public or private, shall be applicable
against every such result, and may be exercised by the Architectural Committee and the
Association. Such remedy shall be deemed cumulative and not exclusive.
Section 9. Statutory References; Fixed Amounts. References in this
Declaration or the Bylaws to specific statutes or provisions of California law shall include those
statutes or provisions as they may be modified or amended from time to time. References in this
Declaration or the Bylaws to specific dollar amounts or percentage rates shall be modified from
time to time as the dollar figures or percentage rates in statutes upon which they are based are
modified. Any modification of this Declaration or the Bylaws resulting from the application of
this Section may be effected by a validly adopted resolution of the Board, without utilizing the
forrnal amendment procedures contained herein or in the Bylaws.
'Ns/
Section 10. Common Plan Declaration. The covenants, conditions and
restrictions set forth in this Declaration constitute a general program for the development,
protection and maintenance of the Project to enhance its value, desirability and attractiveness for
the benefit of all Owners. By acquiring any ownership interest in a Condominium subject to this
Declaration, each person or entity, for himself, herself or itself, and for such Owner's heirs,
personal representatives, successors, transferees and assigns, agrees to be subject to all of the
provisions, restrictions, covenants, conditions, rules and regulations now or hereafter imposed by
this Declaration. Declarant, by this Declaration, sets forth a program for the improvement and
developmentof the Project and hereby evidences its intent that all the restrictions, conditions,
DCO- CC& 2',. •. ... ,
covenants, rules and regulations contained herein shall run with the land and be binding on all
future Owners, grantees, purchasers, assignees, and transferees.
Section 11. Limitation of Restrictions on Declarant. Declarant, in undertaking
the work of construction, marketing and sale of Condominium Buildings, Units and incidental
Improvements upon the Project, and, as set forth in this Section, shall be exempt from
restrictions with respect to the activities described in subparagraphs (a) through (d) below. The
completion of Declarant's work and the sale, rental, and other disposal of Units is essential to the
establishment and welfare of the Project as a residential community. In order that said work may
be completed and the Project be established as a fully occupied residential community as rapidly
as possible, nothing in this Declaration shall be understood or construed to prevent Declarant, a
successor, or their respective agents from:
(a) Doing on the Project whatever is reasonably necessary or advisable
in connection with the completion of said work;
(b) Erecting, constructing, and maintaining on any part or parts of the
Project such structures as may be reasonable and necessary for the conduct of its business of
completing said work and establishing the Project as a residential community and disposing of
the same by sale, lease, or otherwise;
(c) Conducting on any part of the Project its business of completing
said work and of establishing and implementing a plan of ownership and disposing of the
Project, or the individual Units, by sale, lease, or otherwise, or
(d) Maintaining such sign or signs on the Project as may be necessary
for the sale, lease, or disposition thereof; provided, however, that the maintenance of any such
sign shall not unreasonably interfere with the use by any Owner .of his or her Unit or the
Common Areas.
This Section may not be modified, terminated, or otherwise amended or altered
without written approval by Declarant until the earlier of (a) ten (10) years from conveyance of
the first Unit by Declarant, or (b) six (6) months following conveyance of the last Unit sold in
the fully annexed Project, after which time it shall terminate and be of no further force and
effect. Any act attempting or purporting to effect such change, or to adversely affect the rights
granted to or reserved by Declarant hereunder, shall be void and of no force or effect.
\�� Section 12. Declarant's Obligation to Deliver Documents to Association.
Declarant shall deliver to the Board certain documents, in a timely manner, all as specified in
Article VII, Sections 1 and 2 of the Bylaws.
Section 13. Declarant's Reservation of Use Rights. Declarant hereby reserves
the right to develop, operate, use and/or sell one or more Units within the Covered Property as a
vacation club, residence club or similar program, to the extent permitted by applicable law. The
Owners and the Association are prohibited from taking any action, adopting any amendment to
this Declaration, or promulgating any rule that interferes with the rights reserved by the
1z
Declarant under this Section 13, unless the Declarant first consents in writing to any such action,
amendment or rule.
Section 14. Common Area Inspections. The Board shall require strict
compliance with all provisions of this Declaration and shall periodically cause a compliance
inspection of the Project to be conducted to report any violations thereof. The Board shall also
cause conditions inspections of the Common Area and all Improvements thereon to be conducted
in conformance with the Association's Common Area Maintenance Manual and the Operations
Manual, and in the absence of inspection frequency recommendations in the Association's
Common Area Maintenance Manual and the Operations Manual, at least once every three (3)
years in conjunction with the inspection required for the reserve study to be conducted as
required herein, in the Bylaws or by State law, to (a) determine whether the Common Area is
being maintained adequately in accordance with the standards of maintenance established herein;
(b) identify the condition of the Common Area and any Improvements thereon, including the
existence of any hazards or defects, and the need for performing additional maintenance,
refurbishment, replacement, or repair; and (c) recommend preventative actions which may be
taken to reduce potential maintenance costs to be incurred in the future. The Board shall, during
its meetings, regularly determine whether the recommended inspections and maintenance
activities set forth in the Association's Cornrnon Area Maintenance Manual and the Operations
Manual have been followed and, if not followed, what corrective steps need to be taken to assure
proper inspections and maintenance of the Cornrnon Area and all Improvements thereon. The
Board shall keep a record of such determinations in the Board's minutes. The Board shall keep
Declarant fully informed of the Board's activities under this Section. The Board shall employ,
consistent with reasonable cost management, such experts, contractors and consultants as are
necessary to perforin the inspections and make the reports required by this Section. The Board
shall prepare a report of the results of each of the inspections required by this Section. For a
period of ten (10) years after the date of the last close of escrow for a Unit in the Project pursuant
to a Final Subdivision Public Report, the Board shall also furnish to Declarant (x) the report of
each condition inspection performed for the Board, whenever such inspection is performed and
for whatever portion of the Common Area that is inspected, within thirty (30) days after the
completion of such inspection, and (y) the most recent condition inspection report prepared for
any portion of the Common Area, within ten (10) days after the Association's receipt of a written
request therefore from Declarant.
DEO.
ARTICLE XX
CLUBHOUSE
Section 1. Clubhouse Ownership and Easement. By accepting the deed to a
Condominium, each Owner, for himself or herself, and his or her family members, invitees,
renters, personal representatives, assigns and heirs, collectively (the "Owner Related Parties"),
hereby acknowledges that the Clubhouse is a Recreational Amenity of the Project and will be
owned by Declarant until it is annexed to the Project and conveyed to the Association. Declarant
shall retain the right to own, manage, maintain, repair, replace and operate the Clubhouse until
the conveyance of the first Condominium in the final anticipated Phase of the Project, or the
eighth (8th) anniversary of the first conveyance of a Condominium in the initial Phase of the
Project, whichever occurs first. The Owners in the Project shall have an easement to use and
enjoy the Recreational Amenities in the Clubhouse prior to its conveyance to the Association as
described in Section 11, Article XVI of this Declaration, subject to reasonable rules promulgated
by Declarant.
Section 2: Clubhouse Management. Notwithstanding the conveyance of the
Clubhouse to the Association and the Association's assumption of responsibility for the control,
maintenance and repair of the Clubhouse, Declarant reserves the right to convey the Clubhouse
to the Association subject to a management contract with CNL Resort Desert Real Estate, Inc.
dba KSL Real Estate Company ("KSL") or any other third party designated by Declarant
("Clubhouse Management Contract"), which Clubhouse Management Contract will be assumed
by the Association and will specifically cover the operation and management of the Clubhouse,
separate and apart from the Association's overall management agreement with a Managing
Agent. Upon conveyance of the Clubhouse to the Association subject to such Clubhouse
Management Contract, the terin of such Clubhouse Management Contract will continue on an
annual automatic renewal basis unless, at least ninety (90) days prior to the end of any annual
term, the membership of the Association, pursuant to a sixty-seven percent (67%) vote or written
consent of the Members other than Declarant, votes to terminate such Clubhouse Management
Contract effective as of the end of such one (1) year term. In such event, the Association shall
immediately notify the manager under such contract, in writing, of such termination.
Section 3. Contribution to Cost of Operation. Declarant and the Association
may enter into a contract for the maintenance, management and operation of the Clubhouse by
Declarant, which contract will have a term commencing with the initial conveyance of a
Condominium in the first Phase of the Project to a member of the general public, and ending
upon the actual conveyance of the Clubhouse to the Association. Such contract may provide that
the Association shall contribute to the overall cost of the maintenance, repair, replacement,
management and operation of the Clubhouse, provided the California Department of Real Estate
has approved such contract. The costs incurred by the Association in connection with any such
contract shall be assessed to the Owners as Clubhouse Assessments pursuant to Article VI,
Section 8 of this Declaration.
or:o:oc S:R'L..-cr.:-1 79
Section 4. Management Services Desk, Certain Rental Program Facilities,
including a Management Services Desk, will be located in the Clubhouse. Declarant has
reserved, in Article XXI, Section 2 of this Declaration, an easement for the use of those portions
of the Clubhouse and the Project for the operation of the Management Services Desk and Rental
Program Facilities and performance of functions relating to the Resort Rental Program described
in Article XXI of this Declaration.
Section 5. Amendment. Notwithstanding anything to the contrary contained
in this Declaration, no amendments or revisions to the provisions contained in this Article XX
may be made during the Declarant's Consent Period to this Declaration without the prior written
consent of Declarant.
DE°.CC ."sAvi. i4 S!,
ARTICLE XXI
RESORT RENTAL PROGRAM
Section 1. Acknowledeernent. By accepting the deed to a Condominium,
each Owner, for himself or herself and the Owner Related Parties, hereby acknowledges that the
Project is a residential community subject to the tenns and conditions of the Development
Agreement and the Villa La Quinta Specific Plan 2003-065 (the "Specific Plan") which
contemplate substantial short term rentals of Units within the Project, including, in furtherance of
such use, restrictions on the length of the term of rentals as set forth in this Declaration and the
establishment of a rental program to facilitate short term rentals of Units by Owners.
Notwithstanding the foregoing, no individual Owner is required to rent such Owner's Unit.
Section 2, Easements for Resort Rental Program Services. Declarant, for
itself and for the Operator performing Resort Rental Program services hereunder, and their
respective agents, contractors and employees, hereby reserves easements over the Project and all
Phases thereof for the use, maintenance, repair, replacement and operation of the Management
Services Desk located in the Clubhouse (as described and depicted in Exhibit "D"), for the use,
maintenance, repair, replacement and operation of the Rental Program Facilities located
throughout the Project, and for the maintenance of the Units included in the Resort Rental
Program, including, without limitation, the provision of housekeeping and all of the services
related to or in furtherance of the Resort Rental Program. Without in any way limiting the
foregoing, the easements herein described shall include a floating easement over and under the
Project and all Phases thereof for the purpose of installing, convecting, operating, maintaining
and replacing cable lines and appurtenant improvements, which may now exist or which may in
the future be installed, including, without limitation, lines running between the Management
Services Desk, the Units and the La Quinta Resort & ClubTM (the "Hotel") located to the
southeast of the Project.
Section 3. No Competing On -Site Rental Programs. The Operator of the
Resort Rental Program shall have an easement and right to use the Rental Program Facilities and
to operate the Resort Rental Program from the Management Services Desk and the other Rental
Program Facilities. No other rental management program, agency, service or operation shall be
located in permanent or temporary facilities on any portion of the Project for the purpose of
conducting, operating or maintaining an on-site rental facility, service, agency or program.
Nothing herein, however, shall prohibit or limit any Owner from entering into a rental
management contract with respect to such Owner's Unit or Units with any off-site rental
manager, agent or operator provided such off-site rental manager, agent or operator complies
with the City imposed requirements of Article XXII of this Declaration entitled "CITY
REQUIREMENTS."
Section 4. Operator. Until such tune as Declarant assigns its obligations
under the Development Agreement to the Association as provided in Article XXII, Section 7 of
this Declaration, Declarant, its successors and assigns, shall have the right to designate who shall
serve as Operator of the Resort Rental Program. As of the date of recordation of this
Declaration, Declarant has entered into an agreement with KSL entitled the "Rental Management
DEO CItS,R.,.vel..; r
Services Agreement," pursuant to which. the Owners in the Project shall have the right but not
the obligation to contract with KSL with respect to the rental of their Units, subject to the terms
and conditions specified in the Rental Management Services Agreement. Declarant designates
KSL as the initial Operator the Resort Rental Program. However, there is no guarantee by
'Declarant, KSL, the Association or any other person or entity that KSL will continue to be the
Operator of the Resort Rental Program for any period of time. K.SL's rights and obligations with
respect to acting as the Operator of the Resort Rental Program and providing rental management
services to Owners in the Project are set forth in the Rental Management Services Agreement .
Section 5. Amendment. Notwithstanding anything to the contrary in this
Declaration, no amendment to the provisions contained in this Article XXI may be made during
the Declarant's Consent Period to this Declaration without the prior written consent of the
Declarant, its successors or assigns.
DEOCC''R.l. 01.14
ARTICLE XXII
CITY REQUIREMENTS(:11
Section 1. City Requirements. The provisions of this Article XXII arta
included herein pursuant to City requirements and conditions of approval for this Project. The
Association and/or the Owners, as applicable, shall comply with the provisions of this Article.
Section 2. Development Agreement. The Development Agreement provides,
among other things: (a) that Declarant shall pay a one-time mitigation fee (as described in
Section 3 below); (b) that the Association shall collect and pay an Annual Mitigation Fee (as
described in Section 4 below); (c) that the Project is subject to payment of TOT (as described in
Section 5 below); (d) that the Association shall operate a Rental Tracking System. (as described
in Section 6 below), and (e) that the City shall be granted adequate enforcement rights as to the
provisions implementing the Development Agreement.
Section 3. One -Time Mitigation Fee. Declarant has paid or will pay to the
City of La Quinta a one-time mitigation fee in the amount of Two Thousand Five Hundred
Dollars ($2,500.00) per Unit for each Unit constructed in the Project, with such payment due, as
to each Unit, on or before the date the building permit is issued for each such Unit.
Section 4, Annual Mitigation Fee. Assessments collected by the Association
shall include, but are not limited to, the Annual Mitigation Fee, which shall be collected by the
Association as follows:
(a) The Annual Mitigation Fee, which commences at the rate of One
Thousand Dollars ($1,000.00) per year per Unit for each Unit that has been sold to an Owner
pursuant to a Final Subdivision Public Report, as evidenced by a. recorded deed for such Unit, is
due each July 1st (the "Annual Mitigation Payment Date") covering the annual period of the prior
July 1 through the June 30 occurring immediately preceding the Annual Mitigation Payment
Date (the "Operative Year"); provided, however, that the first Operative Year shall commence
on the Effective Date of the Development Agreement and end on the next occurring June 30.
The Effective Date of the Development Agreement is December 12, 2003, and the Development
Agreement expires on December 11, 2053. The Annual Mitigation Fee shall be payable each
Operative Year during the teuu of the Development Agreement for each Unit, regardless of
when or in which Operative Year the Unit was conveyed. As provided in Section 3.3.03 of the
Development Agreement, the Annual Mitigation Fee may be reduced or terminated based on the
TOT generated by the Project and paid to the City.
(b) The Annual Mitigation Fee shall be adjusted annually (up but not
down) by the Consumer Price Index ("C.P.I.") as set forth in Section 3.3.04 of the Development
Agreement.
(c) The Association is responsible for collecting the Annual Mitigation
Fee and forwarding it to the City of La Quinta along with a report as to the Units for which
payment is being made, as required by the Development Agreement.
• DLnCC&a ,....i.14
(d) As provided in the Development Agreement, the Annual
Mitigation Fee will be reduced to Five Hundred Dollars (5500.00) per year per Unit if the City
has received TOT from rentals of Units in the Project in excess of Five Hundred Thousand
Dollars ($500,000) for three consecutive Operative Years during the term of the Development
Agreement, and shall be entirely eliminated if the City has received TOT from rentals of Units in
the Project in excess of One Million Dollars ($1,000,000) for any three consecutive Operative
Years during the term of the Development Agreement, all as more particularly described in
Section 3.3.3 of the Development Agreement.
Section 5. Transient Occupancy Tax. Any rental of a Unit shall be subject to
the collection and payment of the TOT to be collected and paid to the City in accordance with
applicable state and local laws, regulations and ordinances, and all rentals of Units are restricted
to periods of thirty (30) consecutive days or less, all as described in Article IV, Section 14 of this
Declaration.
Section 6. Rental Tracking System. The Association shall establish and
operate throughout the term of the Development Agreement a rental tracking system ("Rental
Tracking System") to be administered by the Association or its agents or contractors. The
Association shall designate and notify the City of the Rental Tracking System administrator.
Each Owner (or such Owner's rental agent, including, if applicable, the Operator of the Resort
Rental Program) shall report, in writing, any rental of such Owner's Unit to the Rental Tracking
System administrator. Owners and their agents shall be responsible for reporting to the Rental
Tracking System administrator the following information for all rentals of all Units within the
Project: (a) Unit rented; (b) the terra of the rental, including the first and last day; (c) the rental
payment; (d) the rental agent, if any; and (e) the name of the renter. The Rental. Tracking System
administrator shall use all reasonable diligence to assure that all such information is collected.
The Rental Tracking System administrator shall provide monthly written reports summarizing
the information collected pursuant to (a) through (d), inclusive, as an aid to the City in assuring
that the proper collection of applicable TOT is occurring. The City shall have the right to audit
the records of Rental Tracking System administrator upon two (2) business days' written notice
to such administrator. Declarant or the Association shall notify the City of the name and contact
information of the Rental Tracking System administrator on or before the date that the first
certificate of occupancy is issued for a Unit in the Project. It shall be the obligation of the
Association to notify the City of any redesignation of the Rental Tracking System administrator.
On an annual basis, the Rental Tracking System administrator shall provide an information
brochure to all Owners of Units describing: (1) the limitation on renting Units for more than
thirty (30) consecutive days; (2) the obligation to collect TOT on rentals; (3) the obligation that
Owners or their agents report all rentals to the Rental Tracking System administrator as required
by this Declaration; and (4) contact information for the Rental Tracking System administrator
and the entity or entities providing rental management opportunities that are known to be
available to Owners under the Resort Rental Program described below.
Section 7. Rental Management Program. Declarant is responsible under the
Development Agreement for ensuring that, for the terra of the Development Agreement, one (1)
or more contracts shall be in effect at all times which provide opportunities to the Owners of the
Units to have the ability to make their Units available for rental periods of up to thirty (30)
DEO C:C &R .vci. i4
consecutive days. The rental management contracts may, but are not required to be, with an on-
site rental management agent. Declarant may, at its election, assign this obligation to the
Association in accordance with the provisions of the Development Agreement. If Declarant so
elects, the Association shall accept such assignment. Upon the recordation of this Declaration
and the execution and recordation of an assumption and assignment agreement (in the form set
forth in Exhibit "D" to the Development Agreement), the obligations set forth in Sections 3.3.3,
3.3.4, 3.3.6 and 3.3.7 of the Development Agreement shall be the obligation of the Association
and Declarant shall no longer be responsible for their implementation.
Section 8. Architectural Changes Require City Approval. The Units within
the Project have been designed to facilitate short-term rental of the Units. Any material
modification of the design or floor plan of a Unit by the Owner of such Unit is prohibited, except
with the prior separate approval of the City's Community Development Director. All substantial
architectural changes in the Project shall be reviewed and approved by the City's Architecture
and Landscaping Review Committee (ALRC) and the City Planning Connnission.
Section 9. Enforcement by the City of La Quinta.
(a) Each Owner acknowledges by acceptance of a deed or other
conveyance therefore, whether or not it shall be expressed in any such deed or other instrument,
that each of the covenants, conditions and restrictions set forth in this Article XXII (hereinafter
"the City Requirements") benefit the City, and that the City has a substantial interest to be
protected with regard to assuring compliance with, and enforcement of, the City Requirements
and any amendments thereto.
(b) The City Requirements shall run in favor of the City, and all such
covenants, conditions and restrictions shall be enforceable against the Declarant, the Association,
and each Owner by the City by proceedings at law or in equity or, at the City's option, by any
method available to the Association as provided elsewhere in this Declaration.
(c) In addition to its right to bring an action at law or in equity for
violation of the City Requirements, the City shall have the same rights and remedies to enforce a
breach of a provision of the City Requirements that is enforceable by the City that the.
Association has to enforce a breach of this Declaration, at the expense of the violating party, and
to charge an assessment against an Owner or the Association for a breach of a provision of the
City Requirements that is enforceable by the City, upon providing the Owner or the Association
with such notices and hearing opportunities as the Association is obligated to provide an Owner
for such breach as more particularly set forth elsewhere in this Declaration. In the event said
breach has been committed by an Owner, the City may enforce the foregoing rights against either
the Association or the breaching Owner. If the City exercises its enforcement rights against the
Association for a breach by an Owner, the City shall extend the time in which the Association
must cure the breach by the Owner for so long as the Association is diligently attempting to
cause the breaching owner to cure the breach. If the Association has the right to assess the
breaching Owner for such a breach and if said breach by the Owner has not been cured by the
Association or the breaching Owner within the times provided herein, the City may elect either
to assess the Association for breach committed by an Owner, the Association shall have the right
saver. i.4
to pass the assessment on to the breaching Owner. Upon the failure of the Owner or the
Association to pay such assessment to the City, the City shall have the same rights against said
Owner or the Association that the Association would have against an Owner for failure to pay
such an assessment as more particularly set forth elsewhere in this Declaration, including any
lien rights. Any lien against the Association shall be a lien against the entire Association
Common Area.�XN
Section M. Written Consent of the Cit Required to Modify Certain
Provisions. Any provision in this Declaration which expressly protects or runs in favor of the
City, including, without limitation, the City Requirements and this Article XXII, shall not be
modified, amended, or deleted without the prior written consent of the City. These provisions
are for the benefit of the City and may be enforced by the City in any manner provided by law.
Section 11. Written Consent of the City Required to Terininate this
Declaration. Notwithstanding anything to the contrary set forth herein, this Declaration shall not
be terminated without the prior written consent of the City.
Section 12. Common Area Lighting. Parking lot light fixtures for the
Clubhouse facilities shall be fiilly shielded and may not exceed an overall height of 10'-0" as
measured from adjacent paved surfaces. All other open parking and greenbelt areas shall be lit
with bollard light fixtures not exceeding 60 -inches tall and 75 watts. Under -canopy lighting is
permitted for carport structures, r `
Section 13. Signs. A permit from the City's Community Development
Department is required for any temporary or permanent signs, subject to the provisions of
Chapter 9.160 of the City Zoning Code. The permanent identification sign for the Project on
Eisenhower Drive shall be limited to a maximum size of twenty-four (24) square feet (double
sided), and shall not exceed six (6) feet in height. Accessory signs within the Project shall not
exceed twelve (12) square feet. Accessory signs may be posted on walls, buildings or
freestanding poles not exceeding eight (8) feet in overall height. Internally illuminated signs are
not allowed except for use within the Clubhouse building.
Section 14. Parking. The final parking design and number of spaces has been
determined during final plan check consideration and approved by the City's Community
Development Department. Each Unit shall have a designated garage or carport parking space.
The parking design and number of spaces in the Project shall not be redesigned or revised
without the approval of the City's Community. Development Department. Parking on the Private
Drives of the Project may be restricted, including, without limitation, to no parking or parking
allowed only on one side of the street. On -street parking of any recreational vehicles (e.g., boats,
motor homes, trailers, buses, campers, mobile homes, inoperable vehicles, or other similar,
vehicles) is prohibited at all times within the Project. Subject to the Association Rules,
temporary parking of recreational vehicles in designated areas is permitted for a maximum of
twenty-four (24) hours as such recreational vehicles are prepared for use or storage. Nothing
herein, however, shall be construed as a representation or warranty that any recreational vehicle
will fit in the Private Drives or in any designated parking areas within the Project. The
DL -U: CC:&it's.v er. lei 86
Association may enforce the parking restrictions set forth herein and may have vehicles illegally
parked removed from the Project.
Section 15. Protection of Bighorn Sheep. All plant materials within the
perimeter retention basins located in the Association Common Area shall be safe for
consumption by the Peninsular bighorn sheep and shall be approved by the Department of Fish
and Game. The use of non-native plant species known to be toxic to Peninsular bighorn sheep,
including oleander shrubs, is not permitted. Use of any part of the Project to provide access to
the adjacent hillsides by either persons or animals for hiking or other purposes is prohibited.
Declarant and/or the Association shall also comply with bighorn sheep mitigation measures
addressed in EA 2003-478,
Section 16. Large Outdoor Events. Large outdoor events for residents and
guests shall be confined to the Clubhouse facilities. A Temporary Use Permit application is
required when events exceed eight hundred (800) people. Fireworks shows (i.e., ground displays
only) are not allowed, unless written permission is obtained from the Fire Marshal, Department
of Fish and Game, and the City.
Section 17. Communication Facilities/Satellite Dish. No commercial
conununication facilities are permitted in the Project, other than City -approved underground
cable facilities. Exterior antennas and communication devices are prohibited, except that a
single one -meter diameter wall -mounted satellite dish for television and internet needs may be
installed on a Unit, subject, however, to Article IV, Section 15 of this Declaration, the
Architectural Guidelines and Association Rules and to any other Association requirements in
connection with such installation.
Section 18, Landscape Maintenance. The Association shall continuously
maintain all landscaping in the Project in a healthy and viable condition. The Association shall
be responsible for planting or replacement of trees in the Project and shall plant such trees in
accordance with City requirements as to the number, type and placement of trees. To encourage
water conservation, no more than fifty percent (50%) of front yard landscaping shall be devoted
to turf, and desertscape materials are preferred. Bubblers and emitters shall be used to irrigate
trees and shrubs.
Section 19. Centralized Mail Deliver System. A centralized mailbox delivery
shall be used for the Project pursuant to any requirements of the U.S. Postal Service.
‚system
‘‘%10 Section 20. Clubhouse Expansion. Clubhouse expansion projects greater than
five thousand (5,000) square feet in size shall be reviewed and approved by the City Planning
Commission.
Section 21. Bike Racks. A minimum five (5) stall bicycle rack shall be
installed and maintained at the Clubhouse.
Section 22. City Access Easement. An irrevocable non-exclusive easement in
favor of the City is hereby created to, over and throughout the Project for access, ingress and
DaOfCC&R.s.+cr.14
egress for the provision of emergency services and for maintenance, construction and
reconstruction of essential Improvements.
Section 23. ADA Units. Certain Units in the Project have been improved so as
to comply with certain requirements of the Americans with Disabilities Act or the Americans
with Disabilities Act Accessibility Guidelines, Title 24 of the California Administrative Code,
and other disability access statutes and regulations as required by the City (collectively the
"ADA Improvements"). Owners of Units improved with ADA Improvements shall have no right
to remove, alter or modify any of the ADA Improvements at any time without first (i) obtaining
any approvals and consents required by the City, (ii) obtaining any approvals and consents
required by the Association and/or the Architectural Committee pursuant to this Declaration, and
(iii) obtaining the written consent of Declarant, which consent shall be granted or withheld in
Declarant's sole discretion, until Declarant has conveyed the last Unit in the last Phase of the
Project.
IN WITNESS WHEREOF, the undersigned, being the Declarant herein, has
executed this Declaration this Jar day of ,
llF(VCCkR'c ver 14
(te
58
DECLARANT:
CENTEX HOMES,
a Nevada general partnership, dba Centex
Destination Properties,
By: Centex Real Estate Corporation,
a Nevada corporation,
Managing Pay er
By:
aul Stashick,
Division President
STATE OF CALIFORNIA
COUNTY OF a, J
ACKNOWLEDGMENT
) ss.
On (\\.,c•LL.K\ 6 2005, before me, O../,sjkIiNet n Aba Notary Public
in and for said state, personally appeared (4hl
personally known to me (-o ed. -to -m -on -t basis of-sati-sfactor:y._e-videnc-e)-to be the pexson(s)f
whose narne( 'is/a subscribed to the within instrument and acknowledged to me that he/sh /they --
executed the same in his/r/their authorized capacity(ie and that by his/her/their-signature(-s)-on
the instrument the person(s)', or the entity upon behalf of which the person(8acted, executed the
instrument.
WITNESS my hand and official seal.
111i1.,3-1J..IIL
Signature
CHRISTINA NIETO
Commission # 1522628
Notary Public • California t
RNefskto County
Pity Comm. Eupion Oct 29, 2008
(Seal)
EXHIBIT "A"
LEGAL DESCRIPTION OF THE INITIAL COVERED PROPERTY r`
That certain real property located in the City of La Quinta, County of Riverside,
State of California, more particularly described as follows:
Units 1 through 36, as shown on the Condominium Plan recorded November
19, 2004, as Instrument No. 04-0926730, Official Records of Riverside
County, California, as amended, located on Lot 2 of Tract 31379, as shown
by Map on file in Book 367, Pages 45 through 56, inclusive, of Maps,
Records of Riverside County, California;
Building Common Area as shown on the Condominium Plan recorded
November 19, 2004, as Instrument No. 04-0926730, Official Records of
Riverside County, California, as amended, located on Lot 2 of Tract 31379,
as shown by Map on file in Book 367, Pages 47 through 56, inclusive, of
Maps, Records of Riverside County, California; and
Association Common Area consisting of Lot 2 of Tract 31379, as shown by
Map on file in Book 367, Pages 47 trough 56, inclusive, of Maps, Records
of Riverside County, California, excepting therefrom Units 1 through 36 and
the Building Common Area described above.
nrnrrc,e.R.sver M `A" -f
EXHIBIT "B-1"
LEGAL DESCRIPTION OF THE PROPERTY SUBJECT TO ANNEXATION .
That certain real property located in the City of La Quinta, County of Riverside;
State of California, more particularly described as follows:
PARCEL A: Lot 1, Lots 3 through 18, inclusive (and all Units and Common Area located
thereon pursuant to Condominium Plans to be recorded on Lots 3 though 18), and
Lots A through P, inclusive, of Tract 31379, as shown by Map on file in Book 367,
Pages 47 through 56, inclusive, of Maps, Records of Riverside County, California;
PARCEL B: An easement for golf carts and pedestrian uses affecting certain real property more
particularly described in that certain Grant of Easement and Consent recorded on
October 30, 2003 as Instrument No. 858764, Official Records of Riverside County,
California; and
PARCEL C: An casement for access and other purposes affecting certain real property more
particularly described in that certain Grant of Easement and Consent recorded on
October 30, 2003 as Instrument No. 858763, Official Records of Riverside County,
California.
(6`:
DLO;CC R' .v .: H "B,,.I_I
EXHIBIT "B-2"
LEGAL DESCRIPTION OF ADDITIONAL PROPERTY SUBJECT TO ANNEXATION
That certain real property located in the City of La Quinta, County o
Riverside, State of California, more particularly described as follows:
Parcel 2 pursuant to Lot Line Adjustment No. 2001-361, recorded October
23, 2001 as Instrurnent/File No. 2001-515074 of Official Records.
(6*
i<04
\'‘()
1.1
f3".7.l
EXHIBIT "C-1"
CLUBHOUSE EASEMENT
(attached)
t>.
t]FC)iC'C&R's seer 14 "C" - l - I
RECORDING REQUESTED BY:
WHEN RECORDED MAIL TO:
(Space Above Line for Recorder's Use Only)
GRANT OF EASEMENT
(Clubhouse)
City of La Quinta, County of Riverside
State of California
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
CENTEX HOMES, a Nevada general partnership dba Centex Destination Properties ("Grantor")
hereby GRANTS to Legacy Villas at La Quinta Homeowners Association, a California nonprofit
mutual benefit corporation (the "Grantee"), and Grantee hereby accepts, ,a non-exclusive easement
for ingress, egress, use and enjoyment of, over, upon and across the rear property located in the
City of La Quinta, County of Riverside, State of California, described as Lot 1 of said Tract No.
31379 (the "Clubhouse Facilities Area"). The easement herein granted shall include the right of
access, ingress, egress, use and enjoyment of the public areas of the clubhouse, including without
limitation the kitchen/grill facility, fitness center, swimming pools, spas and deck areas, together
with the related improvewents, equipment and furnishings located thereon, but excepting
therefrom the desk/registration area located (and relocated from time to time) within the
Clubhouse Facilities Area, the use and enjoyment of which is retained by the Grantor and its
designees.
The easement herein granted is for the benefit of the Owners of the Units within the
Project. Use and enjoyment of the Clubhouse Facilities Area and all improvements thereon shall
be subject to limitations, rules and regulations imposed by the Grantor from time to time.
VINse terms used in this document which are not otherwise expressly defined herein shall
mean the same as such terms are defined in that certain Declaration of Covenants, Conditions and
- Restrictions for Legacy Villas at La Quinta Homeowners Association recorded on
200 , as Instrument No. of the Official Records of Riverside County, California (the
"Declaration").
The easement and rights herein granted shall merge with and automatically terminate and
cease to exist at such time as Grantor's interest in and to the Clubhouse Facilities Area is conveyed
of record by Grantor, its successors and assigns, to Grantee.
Grantor shall pay all real property taxes acid insurance premiums and shall be responsible
for all legal and accounting expenses with respect to the Clubhouse Facilities Area until the date
which is the earlier to occur of (1) conveyance of fee title to the Clubhouse Facilities Area to the
Grantee, or (ii) Grantee's assumption of maintenance responsibilities over the Clubhouse Facilities
Area. 41
Should all or any portion of the Clubhouse Facilities Area be taken pursuant to a
proceeding of condemnation or eminent domain, any award granted to Grantor in such proceeding
allocated to the Clubhouse Facilities Area shall be paid by Grantor to Grantee; provided, however,
that Grantor shall have the right to retain so much of the award as may be reasonably required to
rebuild any facilities which have been condemned within such areas to a standard reasonably
comparable to that which existed prior to such condemnation.
Should a voluntary/involuntary proceeding of bankruptcy be filed by Grantor, Grantor
agrees to cooperate with Grantee to insure that Grantee's easement over the Clubhouse Facilities
Area and all rights thereunder shall not be extinguished and that fee title to the Clubhouse
Facilities Area is conveyed to Grantee in accordance with the phasing plan approved by the
California Department of Real Estate.
If an arbitratable dispute between Grantor and Grantee with respect to the rights and
obligations of the parties in connection with this Grant of Easement arises, the matter will be
submitted to binding arbitration. Arbitratable disputes include any controversy or claim between
the parties, including a claim based on contract, tort or statute or arising out of or pertaining to the
transaction evidenced by this instrument. Any controversy regarding whether a dispute is an
arbitratable dispute shall be determined by the arbitrator. The arbitration shall be conducted in
accordance with the rules of the American Arbitration Association.
Dated: "Grantor"
CENTEX HOMES
a Nevada general partnership •
By: Centex Real Estate Corporation
a Nevada corporation
rnanaging partner
By: '/i
"Grantee"
Paul Stashick
Division President
LEGACY VILLAS AT LA QUINTA
HOMEOWNERS ASSOCIATION
B(?)*
y:
Its:
\'‘(
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
)
)
)
ss
(11:11
On , 200_, before me, a Notary Public in and for said State, personally
appeared , personally known to me (or proved to
me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/arc subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument, the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Notary Public
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
)
)
)
1
On , 200_, before me, a Notary Public in and for said State, personally
appeared , personally known to me (or proved to
me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument, the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Notary Public
OF..O!CC&R';_vcr 14 "C"_1-5
EXHIBIT "C-2"
ENTRY IMPROVEMENTS EASEMENT
(attached)
*c\C
4341
416*
1(°Z
\\CI
DCO/CC&it•s.vcr. 14
RECORDING REQUESTED BY:
WHEN RECORDED MAIL TO:
(Space Above Line for Recorder's fisc Only)
GRANT OF EASEMENT
(Entry Improvements)
City of La Quinta, County of Riverside
State of California
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
CENTEX HOMES, a Nevada general partnership dba Centex Destination Properties ("Grantor")
hereby GRANTS to Legacy Villas at La Quinta Homeowners Association, a California nonprofit
mutual benefit corporation (the "Grantee"), and Grantee hereby accepts, a non-exclusive easement
for pedestrian and vehicular access, ingress, egress, use and enjoyment of, over, upon and across
the real property located in the City of La Quinta, County of Riverside, State of California,
described as (i) Lettered Lots A, B, F, H, I and J of Tract No. 31379 as per Map filed for record in
Book 367, Pages 47 through 56, inclusive, of Maps, Records of Riverside County, and (ii) that
certain real property over which Grantor has an easement as described in the Grant of Easement
and Consent in favor of Grantor and recorded on October 30, 2003 as Instrument No. 858763,
Official Records of Riverside County, California (collectively, the "Entry Improvements Area").
The easement herein granted shall include the right of pedestrian and vehicular ingress and egress
upon and through any streets, roads, entry gates and walkways now or hereafter located upon the
Entry Improvements Area; provided, however, that the Entry Improvements Area shall be limited
to those portions of the Entry Improvements Area upon which streets, roads, entry gates, walkways
or other ways are now or hereafter located.
The easement herein granted is for the benefit of the Owners of the Units within the
Project. Use and enjoyment of the Entry Improvements Area and all improvements thereon shall
be subject to limitations, rules and regulations imposed by the Grantor from time to time.
All terms used in this document which are not otherwise expressly defined herein shall
mean the same as such terms are defined in that certain Declaration of Covenants, Conditions and
Restrictions for Legacy Villas at La Quinta Homeowners Association recorded on
200 , as Instrument No, of the Official Records of Riverside County, California (the
"Declaration").
The easement and rights herein granted shall merge with and automatically terminate and
cease to exist, as to the Entry Improvements Area or any part thereof, at such time as Grantor's
interest in and to the Entry Improvements Area is conveyed of record by Grantor, its successors
and assigns, to Grantee. �.
Grantor shall pay all real property taxes and insurance premiums and shall be responsible
for all legal and accounting expenses with respect to the Entry Improvements Area or any part
thereof until the date which is the earlier to occur of (i) conveyance of fee title to the Entry
Improvements Area to the Grantee, or (ii) Grantee's assumption of maintenance responsibilities
over the Entry Improvements Area or any part thereof,
Should all or any portion of the Entry Improvements Area be taken pursuant to a
proceeding of condemnation or eminent domain, any award granted to Grantor in such proceeding
allocated to the Entry Improvements Area shall be paid by Grantor to Grantee; provided, however,
that Grantor shall have the right to retain so much of the award as may be reasonably required to
rebuild any facilities which have been condemned within such areas to a standard reasonably
comparable to that which existed prior to such condemnation.
Should a voluntary/involuntary proceeding of • bankruptcy be filed by Grantor., Grantor
agrees to cooperate with Grantee to insure that Grantee's easement over the Entry Improvements
Area and all rights thereunder shall not be extinguished and that fee title to the Entry
Improvements Area is conveyed to Grantee in accordance with the phasing plan approved by the
California Department of Real Estate. _ _•
If an arbitratable dispute between Grantor and Grantee with respect to the rights and
obligations of the parties in connection with this Grant of Easement arises, the matter will be
submitted to binding arbitration. Arbitratable disputes include any controversy or claim between
the parties, including a claim based on contract, tort or statute or arising out of or pertaining to the
transaction evidenced by this instrument. Any controversy regarding whether a dispute is an
arbitratable dispute shall be determined by the arbitrator. The arbitration shall be conducted in
accordance with the rules of the American Arbitration Association.
D£O/CC&R's.ver. i4
Dated: "Grantor"
CENTEX HOMES
a Nevada general partnership
By: Centex Real Estate Corporation
a Nevada corporation 1
managing partner
By:
"Grantee"
Paul Stashick
Division President
LEGACY VILLAS AT LA QUINTA
HOMEOWNERS ASSOCIATION
By:
0' Its:
DEO/CC&R's.ver.14 '`C"-2-5
STATE OF CALIFORNIA
ss
COUNTY OF RIVERSIDE
On , 200_, before me, a Notary Public in and for said State, personally
appeared , personally known to me (or proved to
me on the basis of satisfactory evidence) to be the persons) whose narne(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capaeity(ies), and that by his/her/their signature(s) on the instrument, the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Notary Public
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
On , 200 , before me, a Notary Public in and for said State, personally
appeared , personally known to me (or proved to
me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument, the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal,
Notary Public
oeacc&R's.ver. 14 :,c,.,,_s
EXHIBIT "D"
DESCRIPTION AND DEPICTION OF MANAGEMENT SERVICES DESK
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DEO/CC&R's.ver.14 '`D"-1
LOUNGE
HJLTl-PURP45E
MA
LOBSY
CCHPEFrcN CAFE
:IJ(I�NITTR�r ,
Ft
STURACC
HALLVAY
IL1
'AMENS jb 01
iz3
Magement Services Desk
F[RST FLOOR PLAN
EXERCISE
Izr
ELECTRICAL
STORAGE
ElMU
L�J1
P{JUL EQUSPMENT
am
<Z'6*I
s<0�
WILLIAM H1:ZMALHALCH
ARCHI TEC: S INC.
so D .L» t SUM S.T.W C IP W` 1
fc �OOI v�M�mi 1[]H m I19
mArbriR:RYO AMID 0.4.4.4-3.. CA WR-,
G 01V. bi$2 A 116
Ge
7
CENTEX DESTINATION PROPERTIES
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REVISIONS
NO. I OOTE liESCRMILKI
FLOOR PLAN
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06-22-04 1 A2.1
PROGRESS PRINTING