82nd Townhouses CCRs AFN 202203140046IIIIIIII IIII I IN IIIII IIIN IINI NNI WN IN IMII NIII� NII IN �
202203140046
COVENANTS Rec: $235.50
3/14/2022 9:45 AM 33 PG
SNOHOMISH COUNTY, WA
After Recording, Return to:
Patrick K. McKenzie
Marsh Mundorf Pratt Sullivan
+ McKenzie, P.S.C.
4220 132" d Street S.E., Suite 201
Mill Creek, WA 98012
Document Title(s): Declaration of Covenants, Conditions, and Restrictions
Reference Number(s) of Document assigned or released: N/A
Grantor: Randy N. Clark and Judy L. Clark Family Limited Partnership, a Washington limited
partnership
Grantee: Randy N. Clark and Judy L. Clark Family Limited Partnership, a Washington limited
partnership
Legal Description (abbrev.): PARCEL B, CITY OF EDMONDS BLA NO. PLN20190037, AFN
201910185003, SNOHOMISH COUNTY
Tax Parcel No.: 004674-000-006-00
DECLARATION OF COVENANTS, CONDITIONS,
AND RESTRICTIONS FOR 82ND TOWNHOUSES
(A Unit Lot Subdivision, City of Edmonds Project No. BLD 2020-0695)
This Declaration of Covenants, Conditions, and Restrictions for 82ND Townhouses, (this
"Declaration") is made by Randy N. Clark and Judy L. Clark Family Limited Partnership, a
Washington limited partnership, ("Declarant") as of this 22nd day of February, 2022.
Declarant is the owner of certain real property (the "Property") in Snohomish County,
Washington, legally described on Exhibit A attached hereto. The Property has been subdivided
into attached single family residential townhomes as shown on the City of Edmonds, Unit Lot
Subdivision Map recorded under Snohomish County recording number
2.0 2 2 0319 15001 in the records of Snohomish County,
Washington.
NOW, THEREFORE, Declarant hereby declares that the Property, including the
improvements constructed or to be constructed thereon, is hereby subjected to the provisions of
this Declaration and shall be held, sold, transferred, conveyed, used, occupied and mortgaged or
otherwise encumbered subject to the covenants, conditions, restrictions, easements, assessments,
and liens hereinafter set forth, which are for the purpose of protecting the value and desirability
of, and which shall run with the title to, the Property, and shall be binding on all persons having
any right, title or interest in all or any portion of the Property, their respective heirs, legal
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representatives, successors, successors -in -title and assigns and shall inure to the benefit of each
and every owner of all or any portion thereof.
1. DEFINITIONS.
1.1 Words Defined. The following terms shall have the following meanings and definitions
shall be applicable to the singular and plural forms of such terms:
"Assessment(s)" shall mean all assessments imposed pursuant to this Declaration.
"Association" shall mean the 82ND Townhouses Association, which shall be incorporated as a
nonprofit corporation in accordance with Washington statute RCW 24.03, its successors and
assigns.
"Association Lien" shall mean a lien in favor of the Association imposed pursuant to this
Declaration.
"Board" shall mean and refer to the Board of Directors of the Association, as provided for in this
Declaration. For purposes of exercising the powers and duties assigned in this Declaration to the
Board, this term shall also mean the "Temporary Board" of "Declarant" as provided herein,
unless the language or context clearly indicates otherwise.
"Budget" shall mean the operating budget for the Association adopted pursuant to this
Declaration.
"Building" shall mean any of the detached buildings on the Property. Each Building may contain
multiple Residential townhome lots.
"Bylaws" shall mean the bylaws of the Association.
"Common Expenses" shall mean all costs and expenses incurred by the Association, including,
but not limited to, the following: (a) expenses of administration, maintenance, and operation,
including, but not limited to, reasonable compensation to employees of the Association, (b) costs
of repair or replacement of the Common Elements or any Improvements thereon, (c) premiums
or deductibles for all insurance policies and bonds required or permitted by this Declaration, (d)
all real property and other taxes and assessments on the Common Elements, (e) utility and
service charges, (f) funding of reserves for anticipated operational shortfalls or for replacement
of capital items, (g) funding of reserves for the replacement of the Common Elements and any
improvements and community facilities therein, and start-up expenses and operating
contingencies of a nonrecurring nature, (h) legal fees and costs, (i) the costs of recovering unpaid
Assessments, including legal fees and other costs of foreclosure of an Association Lien, 0) fees
for professional services, (k) expenses of administration, maintenance, operation, repair or
replacement of landscaping performed by the Association or the Association's agent on the
Owners' Lots, (1) costs of maintaining any portions of the Buildings which the association is
required or permitted to maintain pursuant to this Declaration, (m) the cost of maintaining or
repairing any storm water drainage system and private driveway located within the private access
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and utility easement, (n) any other costs and expenses determined from time to time as
reasonably necessary by the Board, or as otherwise incurred by the Association pursuant to this
Declaration.
"Common Elements" or "Common Property" shall mean any and all real and personal property
and easements and other interests therein, together with the facilities and improvements located
thereon, now or hereafter owned by the Association for the common use and enjoyment of the
Owners.
"Declarant" shall mean and refer to Randy N. Clark and Judy L. Clark Family Limited
Partnership, a Washington limited partnership.
"Declaration" shall mean this Declaration of Covenants, Conditions and Restrictions.
"Development Period" shall mean and refer to that period of time defined in Section 4.1 of this
Declaration.
"Federal Mortgage Agency" means any division of the United States government, including
the FHA, HUD, VA, and any federally chartered company such as FANNIE MAE and
FREDDIE MAC, which provide, purchase or insure residential mortgages.
"First Mortgage" and "First Mortgagee" shall mean, respectively, (a) a recorded mortgage on
a Lot that has legal priority over all other Mortgages thereon, and which is held by an
institutional Lender, and (b) the holder of a First Mortgage which is an Institutional Lender.
"Governing Documents" means this Declaration, and rules and regulations promulgated under
the authority granted hereby, and the Articles of Incorporation and Bylaws of the Association,
all as amended from time to time.
"Improvement" shall mean all Structures and appurtenances thereto of every kind, whether
above or below the land surface, including but not limited to, buildings (including Residences),
garages, utility systems, walkways, driveways, parking areas, loading areas, landscaping items,
swimming pools, sports courts, fences, walls, decks, stairs, poles, landscaping, vegetation,
irrigation systems, streets, signs, exterior fixtures, recreational facilities, play structures, lighting,
paving, striping, curbs, picnic structures and any other Structure of any kind.
"Institutional Lender" shall mean one or more commercial or savings banks, savings and loan
associations, trust companies, credit unions, industrial loan associations, insurance companies,
pension funds or business trusts, including, but not limited to real estate investments trusts, any
other lender regularly engaged in financing the purchase, construction, or improvement of real
estate, or any assignee of loans made by such a lender, or any private or goveriunental institution
which has insured the loan of such a lender, including Federal Mortgage Agencies, or any
combination of any the foregoing entities.
"Lot" shall mean each of the lots designated by any plot of land shown upon the recorded Unit
Lot subdivision map of the Property, but excluding the numbered Tracts, if any.
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"Majority Vote" shall mean a vote of the holders of more than 50% of the total number of votes
allocated to the Lots in accordance with Section 2.3 below, whether by Class or in the aggregate
as so indicated.
"Mortgage" shall mean a recorded mortgage or deed of trust that creates a lien against a Lot and
shall also mean a real estate contract for the sale of a Lot.
"Mortgagee" shall mean the beneficial owner or the designee of the beneficial owner, of an
encumbrance on a Lot created by a mortgage or deed of trust and shall also mean the vendor, or
the designee of a vendor, of a real estate contract for the sale of a Lot.
"Occupant" shall mean a lessee or licensee of an Owner or any other person or entity, other than
an Owner, in lawful possession of a Lot, or a portion of a Lot, with the permission of the Owner.
"Owner" shall mean and refer to record owner (whether one or more persons or entities) of a fee
interest in any Lot, including the Declarant, but excluding Mortgagees or other persons or
entities having such interest merely as security for the performance of any obligation.
Purchasers or assignees under recorded real estate contracts shall be deemed Owners as against
their respective sellers or assignors.
"Party Wall" shall have the meaning ascribed to it in Section 10 below.
"Person" shall include natural persons and legal entities of all kinds.
"Property" shall mean and refer to the real property described with particularity in Exhibit A and
such additions to that property which may hereafter be brought within the jurisdiction of the
Association.
"Residence" shall mean and refer to a residential structure occupying any Lot.
"Structure" shall mean any building, fence, wall, driveway, walkway, patio, garage, storage shed,
carport, mailboxes, rockery, or the like.
"Transition Date" shall mean and refer to that date defined in Section 4.1 of this Declaration.
2. HOMEOWNERS' ASSOCIATION.
2.1 Non -Profit Corporation. The Association shall be incorporated as a nonprofit corporation
in accordance with RCW 24.03.
2.2 Membership. Every Person which is an Owner of any Lot shall be a member of the
Association. Membership shall be appurtenant to the Lot and may not be separated from
ownership of any Lot and shall not be assigned or conveyed in any way except upon the transfer
of title to said Lot and then only to the transferee of title to the Lot. All Owners shall have the
rights and duties specified in the Governing Documents.
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2.3 Votin . The Association shall have two classes of voting membership:
(a) Class A. Class A members shall be all Owners with the exception
of Declarant. Each Owner shall be entitled to one vote for each Lot owned.
(b) Class B. The Class B member shall be the Declarant who shall be
entitled to three votes for each Lot owned. The Class B membership shall cease and be
converted to Class A membership upon expiration of the Declarant Control Period pursuant to
Section 4.1 below. A majority of the votes entitled to be cast by the Owner present or
represented by proxy at a meeting at which a quorum is present shall be necessary and sufficient
for the adoption of any matter voted upon by Owners unless a greater proportion is required by
the Declaration, the Articles or these Bylaws. The voting rights of any Owner may be suspended
as provided for in the Governing Documents.
2.3.1 Voting Representative. There shall be one (1) voting representative of each Lot.
Declarant shall be considered an "Owner" and shall be the voting representative with respect to
any Lot owned by Declarant. If a Person (including Declarant) owns more than one Lot, such
Person shall have the votes for each Lot owned. The voting representative shall be designated by
the Owner but need not be an Owner. The designation shall be revocable at any time by actual
notice to the Association from the Owner, or by actual notice to the Association of the death or
judicially declared incompetency of the representative. This power of designation and
revocation may be exercised by the guardian of a Lot owner, and the administrators or executors
of an Owner's estate. Where no designation is made, or where a designation has been made but
is revoked and no new designation has been made, the voting representative of each Lot shall be
the group composed of all of its Owners.
2.3.2 Joint Owner Disputes. With the exception of Declarant owned Lots, the vote of a Lot
must be cast as a single vote, and fractional votes shall not be allowed. In the event that joint
Owners are unable to agree among themselves as to how their votes shall be cast, they shall lose
their right to vote on the matter in question. In the event more than one vote is cast for a
particular Lot, none of such votes shall be counted and such votes shall be deemed void.
2.3.3 Pledged Votes. If an Owner is in default under a First Mortgage on a Lot for ninety (90)
consecutive days or more, the Mortgagee shall automatically be authorized to declare at any time
thereafter that the Owner has pledged his or her vote on all issues to the Mortgagee during the
continuation of the default. If the Association has been notified of any such pledge to a
Mortgagee, or in the event the record Owner or Owners have otherwise pledged their vote
regarding special matters to a Mortgagee under a fully recorded mortgage or deed of trust, or to
the vendor under a duly recorded real estate contract, only the vote of such Mortgagee or vendor
will be recognized in regard to the special matters upon which the vote is so pledged, if a copy of
the instrument with this pledge has been filed with the Association. Amendments to this section
shall only be effective upon the written consent of all of the voting Owners and their respective
Mortgagees and vendors, if any.
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2.4 Meetings.
2.4.1 Annual Meetings, Audits. There shall be an annual meeting of the Owners in each
calendar year, or such other fiscal year as may be adopted by the Association, at such reasonable
place and time as may be designated by written notice of the Association delivered to the Owners
no less than fourteen (14) days and no more than fifty (50) days prior to the date fixed for such
meeting. At the armual meeting, there shall be presented a report of the itemized receipts and
disbursements for the preceding fiscal year, and allocation thereof to each Owner, and the
estimated expenses, if any, for the Association for the coming fiscal year. A Lot Owner, at his
own expense, may at any reasonable time make an audit of the books of the Association.
2.4.2 Special Meetings. Special meetings of the Owners may be called at any time for the
purpose of considering matters which by the terms of this Declaration require the approval of all
or some of the Owners, or for any other reasonable purpose. Such meeting shall be called by
written notice of one-third or more Owners, which notice shall be delivered not less than
fourteen (14) days and no more than sixty (60) days prior to the date fixed for such meeting. The
notice shall specify the date, time and place of the meeting and in general the matters to be
considered.
2.4.3 Quorum Requirements for Association Meeting. At all meetings of the Owners, thirty
(30%) of the voting Owners present in person or by proxy shall constitute a quorum. A majority
of Owners present and entitled to vote, either in person or by proxy shall be sufficient for the
passage of any motion or the adoption of any resolution, except in connection with amendment
or repeal of this Declaration. If the required quorum is not present, another meeting may be
called subject to the requirement of written notice sent to all members at least ten (10) days in
advance of such meeting, and the required quorum at the subsequent meeting shall be one-half
(1/2) of the required quorum for the preceding meeting. In the absence of a quorum at an
Owner's meeting, a majority of those present in person or by proxy may adjourn the meeting to
another time but may not transact any other business. An adjournment for lack of a quorum shall
be to a date not less than five (5) nor more than thirty (30) days from the original meeting date.
2.5 Bylaws of Association. Bylaws for the administration of the Association and the
Property, and for other purposes not inconsistent with the intent of this Declaration, may be
adopted and amended by the Board. The Bylaws may contain provisions which are
supplementary to, and consistent with the declaration. In particular, but without limitation, the
Board may establish provisions for the giving of notice (including electronic notice) of the time
and place of meetings, and the like.
2.6 Powers of the Association. The Association shall have the powers enumerated below,
any powers reasonably implied from the grant of enumerated powers, and any power reasonably
necessary to the effective administration of the Common Elements, and the effectuation of the
purposes of this Declaration.
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(a) Purchase policies of liability and property insurance on the Common Elements and the
Buildings, and such other insurance as the Board deems advisable, and take all actions which
may be necessary or convenient in dealing with any insurance recovery or any insurance
company.
(b) Purchase legal and accounting services, if necessary, for the administration of
Association affairs, administration of the Common Elements, or the enforcement of this
Declaration.
(c) Arrange for the maintenance, repair and replacement of the Common Elements.
(d) If necessary, maintain any Lot if such maintenance is reasonably necessary in the
judgment of the Board to (1) protect Common Elements, or (2) to preserve the appearance and
value of the Property as a whole. The Board may authorize such maintenance activities if the
Owner or Owners of the Lot have failed or refused to perform maintenance within a reasonable
time after written notice of the necessity of such maintenance has been delivered by the Board to
the Owner or Owners of such Lot, provided that the Board shall levy a special Assessment
against the Owner or Owners of such Lot for the cost of such maintenance.
(e) Pay any amount necessary to discharge any lien or encumbrance levied against the entire
Property or any part thereof which is claimed or may, in the opinion of the Board, constitute a
lien against the Property or a portion thereof and/or against the Common Elements. Where one
or more Owners are responsible for the existence of such liens, they shall be jointly and severally
liable for the cost of discharging it and any costs or expenses, including reasonable attorneys'
fees and costs of title search incurred by the Board by reason of such lien or liens. Such fees and
costs shall be assessed against the Owner or Owners and the Lot responsible to the extent of their
responsibility.
(f) Pay all utility charges attributable to Common Elements.
(g) Pay all costs deemed appropriate by the Board to ensure adequate security for the Lots
and Common Elements.
(h) Improve Common Elements with new capital improvements; provided that for those
capital improvements exceeding ($7,500.00), fifty-one (51%) percent of the Owners must
approve the addition of such capital improvements to the Common Elements.
(i) Enter any Lot or Residence, when reasonably necessary, in the event of emergencies or in
connection with any maintenance, landscaping or construction for which the Board is
responsible. Except in cases of emergencies, the Board, its agents or employees shall attempt to
give notice to the Owner or Occupant of any Lot or Residence twenty-four (24) hours prior to
such entry. Such entry must be made with as little inconvenience to the Owners as practicable,
and any damage caused thereby shall be repaired by the Board if the entry was due to any
emergency (unless the emergency was caused by the Owner of the Lot entered, in which case the
cost shall be specially assessed to the Lot). If the work, repairs or maintenance activities were
necessitated by the Owner's neglect of the Lot or the Owner's violation of the restrictions or
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duties set out in this Declaration, the Bylaws or the Articles, the cost of such repair or
maintenance activity shall be specially assessed to that Lot. If the emergency or the need for
maintenance or repair was caused by another Owner of another Lot, the cost thereof shall be
specially assessed against the Owner of the other Lot.
0) Adopt and publish reasonable rules and regulations consistent with this Declaration
governing the members and their guests and establish reasonable penalties for any infraction
thereof.
(k) Employ a property manager to keep the books of the Association, and take such other
actions as the Association may deem appropriate.
(1) Impose annual and special assessments to pay for Common Expenses.
(m) Open a bank account on behalf of the Association and designate the signatories required.
(n) Exercise all powers, duties and authority vested in or delegated to the Association and not
reserved to the membership by other provisions of the Governing Documents.
(o) The power to acquire by gift, pledge or otherwise, own, hold, improve, build upon,
operate, maintain, insure, convey, sell, lease, transfer, dedicate for public use or otherwise
dispose of real or personal property in connection with the affairs of the Association.
(p) The power to borrow money, and with the consent of at least sixty-seven percent (67%)
of the voting power of the Association, mortgage, pledge, encumber or hypothecate any or all of
its real or personal property as security for money borrowed or debts incurred.
(q) With the consent of at least sixty-seven percent (67%) of the voting power of the
Association, the power to dedicate, sell, transfer, all or any part of the common elements of the
property to any public agency, authority or utility for such purposes and subject to such
conditions as may be agreed upon by the Board.
(r) The power to participate in mergers and consolidations with other non-profit
corporations for the same purposes, provided that any such merger or consolidation shall have
the consent of at least sixty-seven percent (67%) of the voting power of the Association. The
Association shall have no authority with respect to construction defects in any residence, and
such issues will be governed solely by the purchase and sale contract between each Owner and
Declarant.
3. MANAGEMENT BY BOARD.
3.1 Management by Board. All administrative power and authority of the Association shall
vest in a Board of Directors (the "Board") which after the Transition Date shall have not less
than three (3) directors or more than five (5) directors who, after the Transition Date, must be
members of the Association or the officer, director, or agent of a Member which is an entity.
The Declarant shall have sole authority to appoint all Board Members during the Development
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Period (the "Temporary Board") and such Declarant -appointed Director(s) need not be members
of the Association during the Development Period. The Association (or the Declarant acting
alone during the Development Period), by amendment of the Bylaws, may increase the number
of directors. All Board positions shall be open for election at the first annual meeting after
termination of the Development Period.
3.2 Election of Board of Directors and Terms of Office. The members of the Board shall
serve for staggered terms of office as provided in the Bylaws; and as determined at the first
Association meeting after the Transition Date at which the initial Board of owners is elected. The
Owners shall adopt voting procedures designed to assure that the expiration dates for the term of
the initial Board members are staggered. Cumulative voting is not permitted.
3.3 Vacancies. Vacancies in the Board caused by any reason other than the removal of a
Board member by a vote of the Association shall be filled by vote of the majority of the
remaining Board members, even though they may constitute less than a quorum; and each person
so elected shall be a Board member until a successor is elected at the next annual meeting of the
Association.
3.4 Removal of Board Members. At any regular meeting or at any special meeting called for
that purpose, any one or more of the Board members may be removed with or without cause, by
a majority of all of the Owners, and a successor may then and there be elected to fill the vacancy
thus created. Any Board member whose removal has been so proposed by the Owners shall be
given an opportunity to be heard at the meeting. Notwithstanding the above, until the
Development Period has expired, only Declarant shall have the right to remove a Board member.
3.5 Organizational Meeting. The first meeting of a newly -elected Board shall be held
immediately following the annual meeting of the Association at which they were elected, and no
notice shall be necessary to the newly elected Board members in order to legally conduct such
meeting.
3.6 Regular Meeting. Regular meetings of the Board may be held at such time and place as
shall be determined, from time to time, by a majority of the Board members, but at least two
such meetings shall be held during each fiscal year and one (1) such meeting shall be held
immediately following the annual meeting of Owners. Notice of regular meetings of the Board
shall be given to Owners. Notice of regular meetings of the Board shall be given to each Board
member, personally or by mail or telephone, at least seven (7) days prior to the day named for
such meeting.
3.7 Special Meetings. Special meetings of the Board may be called by the President on seven
(7) days' notice to each Board member, given personally, or by mail, email, or telephone, which
notice shall state the time, place (as hereinabove provided), and purpose of the meeting. Special
meetings of the Board shall be called by the President or Secretary in like manner and on like
notice on the written request of at least two Board members.
3.8 Waiver of Notice. Before, at, or after any meeting of the Board, any Board member may,
in writing, waive notice of such meeting and such waiver shall be deemed equivalent to the
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giving of such notice. Attendance by a Board member at any meeting of the Board shall be a
waiver of notice by him or of the time and place thereof. If all the Board members are present at
any meeting of the Board, no notice shall be required and any business may be transacted at such
meeting.
3.9 Quorum. At all meetings of the Board, a majority of the members of the Board shall
constitute a quorum for the transaction of business, and the acts of a majority of the Board
members present at a meeting at which a quorum is present shall be the acts of the Board. If, at
any meeting of the Board, there is less than a quorum present, the majority of those present may
adjourn the meeting from time to time. An adjournment for lack of a quorum shall be to a date
not less than five (5) nor more than thirty (30) days from the original meeting date. At any such
adjourned meeting, any business which might have been transacted at the meeting as originally
called may be transacted without further notice.
3.10 Compensation. No Board of Director shall receive compensation for any service he may
render to the Association as a Director. However, any Director may be reimbursed for his or her
actual expenses incurred in performance of his or her duties.
3.11 Fidelity Bonds. The Board may require that all officers and employees of the
Association handling or responsible for Association funds shall furnish adequate fidelity bonds.
The premiums on such bonds shall be paid by the Association.
4. DEVELOPMENT PERIOD; MANAGEMENT RIGHTS OF DECLARANT
DURING DEVELOPMENT.
4.1 Management by Declarant. "Development Period" shall mean that period of time from
the date of recording this Declaration until the earlier of. (1) a date seven (7) years from the date
of recording this Declaration, or (2) the thirtieth (30th) day after Declarant has transferred title to
the last purchasers of a Lot representing ninety-five percent (95%) of the total lots in the Unit
Lot Subdivision, or (3) the date on which Declarant elects to permanently relinquish all of
Declarant's authority under this Section by written notice to all owners (the "Transition Date").
Until the Transition date, the Property shall be managed and the Association organized at the
sole discretion of the Declarant.
4.2 Notice to Owners. Not less than fourteen (14) nor more than fifty (50) days prior to the
termination of the Development Period, the Declarant shall send written notice of the termination
of the Development Period to the Owner of each Lot. Said notice shall specify the date when the
Development Period will terminate and shall further notify the Owners of the date, place and
time when a meeting of the Association will be held. The notice shall specify that the purpose of
the Association meeting is to elect new Officers and Directors of the Association, and to approve
or establish Articles or Bylaws. Notwithstanding any provision of the Articles or Bylaws of the
Association to the contrary, for the purpose of this meeting, the presence, either in person or by
proxy, of the Owners of thirty-three percent (33%) of the Lots shall constitute a quorum. The
Board of Directors and Officers of the Association may be elected by a majority vote of said
quorum. If a quorum shall not be present, the Development Period shall nevertheless terminate
on that date specified in said notice, the term in office of any director or officer appointed by
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Declarant shall be deemed terminated, and it shall thereafter be the responsibility of the Lot
Owners to provide for the operation of the Association.
4.3 Temporary Board. Declarant may, in its sole discretion, and at such times as the
Declarant deems appropriate, appoint two or more persons who may be (but are not required to
be) Lot Owners, or are representatives of corporate entities or other entities which are Lot
Owners, as a Temporary Board. This Temporary Board shall have full authority and all rights,
responsibilities, privileges and duties to manage the Property under this Declaration and shall be
subject to all provisions of this Declaration and the Bylaws, provided that after selecting a
Temporary Board, the Declarant, in the exercise of his sole discretion, may at any time terminate
the Temporary Board and reassume his management authority or select a new Temporary Board.
4.4 Management of Plat During Development Period. So long as no Temporary Board is
managing the Property or until such time as the first permanent Board is elected, should
Declarant choose not to appoint a Temporary Board, Declarant or a managing agent selected by
the Declarant shall have the power and authority to exercise all the rights, duties and functions of
the Board and generally exercise all powers necessary to carry out the provisions of this
Declaration, including but not limited to enacting reasonable administrative rules, contracting for
required services, obtaining property and liability insurance, and collecting and expending all
assessments and Association funds. Any such managing agent or the Declarant shall have the
exclusive right to contract for all goods and services, payment for which is to be made from any
monies collected from assessments.
4.5 Purpose of Development Period. These requirements and covenants are made to ensure
that the Property will be adequately administered in the initial stages of development and to
ensure an orderly transition to Association operations upon the Transition Date. Acceptance of
an interest in a Lot evidences acceptance of this management authority in Declarant.
4.6 Expenditures During Development Period. During the Development Period, Declarant or
any successor of Declarant, shall have the sole discretion to use and consume all or so much of
the dues paid in as in Declarant's judgment is necessary or expedient in maintaining the
Common Elements and carrying out the other functions of the Association. Maintenance of
Common Elements include, but are not limited to, (1) replacement of all dead or missing
landscaping; (2) irrigation costs and repairs; and (3) costs of repairing damage due to vandalism
or other destruction. Other expenditures may include, but are not limited to, any legal fees
associated with Declarant, or any successor of Declarant, carrying out any duties during the
Development Period, including all costs associated with turning over the Association after the
expiration of said Development Period. Upon termination of the Development Period, Declarant
shall deliver any funds remaining to the Association.
4.7 Limitations on Liability. Declarant, or any successor of Declarant, shall not be held
liable to the Association for monetary damages for conduct as the Declarant and shall be held
harmless from any and all legal actions brought by the Association for the administration of the
Association prior to expiration of the Development Period.
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5. BUDGETS AND ASSESSMENTS.
5.1 Budget_ Preparation. Not less than thirty (30) days prior to the beginning of each fiscal
year, the Board shall adopt a proposed budget based on an estimate of the charges for Common
Expenses to be paid during the year, which may also make provision for creating, funding and
maintaining reserves for contingencies, operations, insurance, and maintenance, improvement,
repair, replacement and acquisition of the Common Elements, including Cornmon Area
Improvements or Structures, and which takes into account any expected income and any surplus
available from the prior year's operating fund.
5.2 Ratification of Budget. With respect to any Budget adopted after the Transition Date, the
Board shall set a date for a meeting of the Members to consider ratification of the budget. The
date of the meeting shall be not less than fourteen (14) nor more than sixty (60) days after a
summary of the annual budget or special assessment supplemental budget is mailed to each
Member. Unless at that meeting fifty-one percent (51 %) of the Members (not just fifty-one
percent (51%) of a quorum) reject the Budget, the Budget is ratified, whether or not a quorum is
present. If the proposed Budget is rejected or the required notice is not given, the periodic
Budget last ratified by the Members shall be continued until such time as the Members ratify a
subsequent Budget proposed by the Board.
5.3 Supplemental Budget/Special Assessment. If during the fiscal year the Budget proves to
be inadequate for any reason, including nonpayment for any reason of any Member's
Assessment or an unbudgeted Common Expense, the Board may prepare a supplemental budget
for the remainder of the year that includes a special assessment. Any supplemental budget that
results in an increase in the Assessment charged to a Lot must be ratified pursuant to Section 5.2
above. The Board shall have the authority to determine the date payment of any special
assessment is due. The Board has the duty and/or right under various provisions of this
Declaration to assess particular sums against specific Owners (and not against all Owners). Such
Assessments against particular Owners shall be assessments for all other purposes under this
Declaration.
5.4 Assessment of Budgeted Common Expenses Against Lots. The annual expenditures
contained in the Budget, net of budgeted income, shall be assessed in equal shares against each
Lot. Each Owner of a Lot, for himself or herself, and for his or her heirs, personal
representatives, successors and assigns, hereby covenants and agrees, and each subsequent
Owner of a Lot by acceptance of a deed therefore, whether or not it shall be so expressed in the
deed, is deemed to covenant and agree, to pay to the Association, for each Lot owned, any and
all Assessments charged by the Association pursuant to this Declaration.
5.5 Declarant's Liability for Assessments. Declarant shall have the right to not pay
Assessments with respect to any Lot owned by Declarant until a Residence has been constructed
and occupied on such Lot; provided that until the earlier of the date that (i) Declarant notifies the
Association that it will pay full assessments on all Lots which Declarant Owns, (ii) the date all
Lots have an occupied Residence located thereon, the Declarant shall pay the difference (if any)
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between all the actual out of pocket expenses of the Association and the amounts collected in
Assessments. The Association may not reduce artificially assessments to take advantage of this
obligation.
5.6 Lien of Assessments. Assessments shall be a charge on the real property and shall be a
continuing lien upon the real property against which the Assessment is made from the time that
the Assessment is due. Recording of the Declaration constitutes record notice and perfection of
the lien for Assessments. While no further Recording of any claim of lien for Assessments shall
be required to perfect the Association's lien, the Association may record a notice of claim of lien
for Assessments in the real property records of the county where the Property is located. Any
current or prospective Owner or Mortgagee may request a certificate of Assessments from the
Board as provided below, and the certificate shall be conclusive as to the amount of any lien
against a Lot or Lots at the time of issuance.
5.7 Personal Obligations. In addition to constituting a lien on the Lot and all its
appurtenances, each Assessment, including without limitation interest, late charges, costs and
attorneys' fees in the event of delinquency, shall be the joint and several personal debt and
obligation of the Owner of the Lot for which the same are assessed as of the time the Assessment
is made, and, except as provided in Section 5.12, with respect to Mortgagees, to that Owner's
successors in title. Suit to recover personal judgment for any delinquent Assessments shall be
maintainable without foreclosing or waiving the liens securing them. No Owner may waive or
otherwise escape liability for the Assessments provided for in the Declaration by nonuse or
abandouunent of his or her Lot. No Owner shall be entitled to assert as a setoff or defense against
his or her obligation to pay Assessments the amount of any obligation or liability due from, or
claim asserted against, the Association or any other person.
5.8. Application of Payments. Any payment on an Owner's Assessment account shall be
applied first to outstanding fines, then to costs of collection, including attorneys' fees, chargeable
to an Owner pursuant to the Declaration, then to interest and late fees, then to regular
Assessments, and finally to special Assessments.
5.9 Fiscal Year. The Board may adopt such fiscal year for the Association as it deems to be
convenient. Unless another year is adopted, the fiscal year will be the calendar year.
5.10 Date of Commencement of Annual Assessments. The annual Assessments provided for
in the Declaration shall commence on and become due and payable in twelve (12) equal monthly
installments beginning on the first day of the first month of each fiscal year, or in any other
manner as the Board may reasonably require. Written notice of each annual and special
Assessment shall be sent to every Member at least thirty (30) days in advance of the date
payment is due. Each Member shall be obligated to pay Assessments made pursuant to the
Declaration to the Association in equal monthly installments on or before the first day of each
month during the year, or in any other reasonable manner as the Board shall designate. Any
Assessment not paid in full when due shall be delinquent and shall bear interest as specified
herein until paid.
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5.11 Omission of Assessment. The omission by the Board before the expiration of any year to
adopt the budget and Assessments for that or the next year shall not be deemed a waiver or
modification in any respect of the provisions of the Declaration for that or any subsequent year,
but the Assessment established for the preceding year shall continue until a new Assessment is
fixed.
5.12 Priority of Assessments. The lien for payment of Assessments shall have priority over all
other liens and encumbrances, recorded or unrecorded, except that the liens created under the
Declaration upon any Lot for Assessments shall be subject to tax liens on the Lot in favor of any
assessing unit and/or special district and shall be subject to the rights of a Mortgagee in the case
of any indebtedness secured by a First Mortgage upon the Lot. Where a Mortgagee or other
purchaser of a Lot becomes entitled to possession of a Lot as a result of a Mortgage Foreclosure
of a First Mortgage, that possessor and his or her successors and assigns shall not be liable for
the share of the Assessments by the Association chargeable to that Lot which became due prior
to the mortgage foreclosure sale. That prior unpaid share of Assessments shall, at the discretion
of the Board, be deemed to be Common Expenses collectable from all of the Owners including
the possessor, his or her successors and assigns.
5.13 Late Charges and Interest on Delinquent Assessments. The Board may from time to time
establish late charges and a rate of interest to be charged on delinquent Assessments. In the
absence of other established non -usurious rates, the late fee on delinquent Assessments shall be
fifty dollars ($50.00) which shall be added to any account which is not paid in full within thirty
(30) days of its due date. The interest rate applicable to any account which remains unpaid or
delinquent for more than thirty (30) days after the date due shall be twelve percent (12%) per
annum, imposed on the entire delinquent balance, compounded monthly.
5.14 Recover of Attorneys' Fees and Costs. The Association shall be entitled to recover any
costs and reasonable attorneys' fees incurred in comiection with the collection of delinquent
Assessments, whether or not those collection activities result in suit being commenced or
prosecuted to judgment. In addition, the prevailing party shall be entitled to recover costs and
reasonable attorneys' fees on appeal and in the enforcement of a judgment.
5.15 Certificate of Assessment. A certificate executed and acknowledged by the treasurer or
the president of the Association, or the Manager, or another authorized agent of the Association
if neither the president nor treasurer nor Manager is available, stating the indebtedness, if any,
for Assessments secured by the Association's lien upon any Lot shall be conclusive upon the
Association as to the amount of indebtedness on the date of the certificate in favor of all persons
who rely thereon in good faith. A certificate of Assessments, in recordable form, shall be
furnished to any Member, Owner or any Mortgagee within a reasonable time after request at a
reasonable fee to be set by the Board. Unless otherwise prohibited by law, any Mortgagee may
pay any unpaid Assessments payable with respect to that Lot and upon payment that Mortgagee
shall have a lien on the Lot for the amounts paid of the same rank as the lien of its Mortgage.
5.16 Non -Judicial Foreclosure of Assessment Lien. The Owners, by approval of this
Declaration, each hereby bargain, sell and convey to Chicago Title Insurance Company, a
Washington corporation (the "Trustee"), in Trust, for the benefit of the Association, as
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beneficiary, with power of sale, the real property which is subject to this Declaration, which real
property is not used principally for agricultural or farming purposes, together with all the
tenements, hereditaments, and appurtenances now or hereafter thereunto belonging or in any way
appertaining, and the rents, issues and profits thereof. This grant is made by each Owner for the
purpose of securing performance of the payment of all Assessments due hereunder against each
Owner's respective Lot. Upon default by any Owner in the payment of any Assessment, upon
the written request of the Association, the Trustee shall sell the Lot subject to the lien for
Assessments, in accordance with the Deed of Trust Act of the State of Washington at public
auction to the highest bidder. Any person except the Trustee may bid at Trustee's Sale.
The Trustee shall apply the proceeds of the sale as follows: (1) to the expense of sale, including a
reasonable Trustee's fee and attorney's fee; (2) to the obligation secured by this grant in trust; (3)
the surplus, if any, shall be distributed to the persons entitled thereto. The Trustee shall deliver
to the purchaser at the sale its deed, without warranty, which shall convey to the purchaser the
interest in the property which the Owner had or had the power to convey at the time of adoption
of this Amendment, and such as he or she may have acquired thereafter. The Trustee's deed
shall recite the facts showing that the sale was conducted in compliance with all the requirements
of law and of the Declaration, which recital shall be prima facia evidence of such compliance
and conclusive evidence thereof in favor of bona fide purchaser and encumbrances for value.
The Beneficiary may appoint in writing a successor trustee, and upon the recording of such
appointment in the real property records of the county in which this Declaration is recorded, the
successor trustee shall be vested with all powers of the original trustee.
5.17 Judicial Foreclosure of Assessment Lien. The Association may foreclose the lien of any
Assessment by appropriate action in court in the manner that a Mortgage is foreclosed or in any
other manner provided by the laws of the State of Washington as they may from time to time be
changed or amended. In any action to foreclose a lien against any Lot for nonpayment of
delinquent Assessments, any judgment rendered against the Owner of the Lot in favor of the
Association shall include a reasonable sum for attorneys' fees and all costs and expenses
reasonably incurred in preparation for or in the prosecution of the action in addition to taxable
costs permitted by law. The Association shall have the power to bid in at any resulting sale and
to purchase, acquire, lease, hold, mortgage and convey any Lot.
5.18 Records. The Board shall cause to be kept complete, detailed and accurate records of all
receipts and expenditures of the Association, specifying and itemizing each expense incurred.
Except to the extent exempted from disclosure under applicable law, the books and records of the
Association, including the records and resolutions authorizing payments by the Association and
all contracts, documents, minutes, resolutions, papers and other records of the Association, shall
be available for examination and copying upon prior request by any Member, Owner,
Mortgagee, prospective purchaser of a Lot, or prospective Mortgagee, personally or by an
authorized representative, during normal business hours at the place at which the records are
normally kept or at another reasonable time and location established by the Board. The
Association may assess reasonable charges against a Member or Owner, as a special Assessment,
to cover the direct and indirect costs of examination and copying of Association records by an
Owner or Member or their representatives and may require any other requesting party to pay a
like charge.
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5.19 Audit. At least annually, the Association shall prepare, or cause to be prepared, a
financial statement of the Association for the inunediately preceding fiscal year. The financial
statement shall be audited by an independent certified public accountant unless the audit for that
fiscal year is waived by a vote of sixty-seven percent (67%) of the votes cast by Owners, in
person or by proxy, at a meeting of the Association at which a quorum is present, or by written
ballot.
5.20 Initial Working Capital Contribution. In cormection with the closing of the sale of each
Lot, the first purchaser thereof shall pay to the Association, as a nonrefundable initial
contribution to the Association's working capital, an amount equal to Five Hundred Dollars
($500.00). The working capital account is not an advance payment of regular assessments.
Declarant shall not have the right to use the working capital fund to defray Declarant's expenses,
payment of reserve contributions, construction costs, or to make up budget deficits.
6. COMMON ELEMENTS; EASEMENT PROVISIONS.
6.1 Conveyance of Common Elements. As further described in the Plat, Declarant grants,
confirms and conveys to the Association for the undivided common use and enjoyment of the
Association and Owners, the Common Elements, subject to the easements on the Plat and as
otherwise described herein.
6.2 Association to Maintain Common Elements. The Association shall have the right and the
obligation to maintain the Common Elements, (except to the extent such maintenance is required
to be provided by utility purveyors) and expenses relating thereto shall be Common Expenses to
ensure the long-term maintenance and upkeep of common element landscaping, storm drainage
facilities, and open space areas and facilities, which cannot be avoided through lease agreements.
6.3 Easements. As further described and shown on the Plat, Declarant has conveyed and
established the following easements and hereby grants, confirms and conveys the easements
corresponding to the easement areas indicated on the Plat:
6.3.1 Ingress, Egress, and Utilities. A thirty (30) foot easement is granted over, across and
under the Common Elements and Lots 1 through 4, inclusive as described in the Plat for the
benefit of Declarant, the Association and the Owners, and their respective heirs and assigns, for
ingress and egress and the installation and maintenance of underground utilities including the
right to install, lay, construct, renew, operate and maintain underground conduits, cables, pipe,
and wires with necessary facilities and other equipment for the purpose of serving this
subdivision and the Lots with electric, telephone, gas, television cable and other utility services
together with the right to enter upon the Lots, Tracts and Common Elements at all times for the
purposes herein stated and as shown on the Plat, and for emergency vehicle access to the Lots,
and for the purposes of exercising all other rights granted in this Declaration and as shown on the
Plat. Such easement includes, without limitation, the right to go upon the Lots of Owners for the
purpose of removing Vehicles or other similar objects which are parked or stored in violation of
the terms of this Declaration, or otherwise exercise remedial rights under this Declaration.
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6.3.2 Utility Providers. An easement is granted to all utility providers, and their respective
successors and assigns, under and upon the exterior ten (10) feet parallel with and adjoining the
street frontage of Lot 4, in which to install, lay, construct, renew, operate and maintain
underground conduits, cables, pipe, and wires with necessary facilities and other equipment for
the purpose of serving this subdivision and other property with electric, telephone, gas, television
cable and other utility services together with the right to enter upon the Lots, Tracts and
Common Elements at all times for the purposes herein stated and as shown on the Plat.
6.3.3 Sewer Easement. A Ten (10) foot private sewer easement is granted to the Owners as
designated on the Plat, together with the right of ingress and egress, and the right to excavate,
construct, operate, maintain, repair and/or rebuild the sewer system and related sewer
infrastructure improvements, and/or other sewer facilities, under, upon and through the
designated sewer easements.
6.3.4 Maintenance Easements. An easement is granted to the Association and to each Owner,
their respective successors, assigns, agents and contractors over, under and across all portions of
each Lot, and the Common Elements, including if necessary, the interior of each building for the
purposes of performing maintenance, repair and reconstruction obligations imposed on the
Association and/or the individual Lot Owner pursuant to this Declaration. The Association and
each Owner exercising this right of entry shall:
(i) Provide reasonable advance notice prior to such entry;
(ii) Utilize only such portion of another Lot, and only for such duration as is reasonably
necessary to accomplish a permitted purpose and in a mamier that will not unnecessarily disturb
the quiet enjoyment of such other Lot by the Owner thereof, and
(iii) At the expense of the Association (in the case of entry by the Association), or at the
expense of the entering Owner (in the case of entry by an Owner), restore such other Lot,
Common Element and improvements to as near the original condition as reasonably practicable
and allow no liens to be placed upon such other Owner's Lot. This provision is intended to be
interpreted in favor those Owners burdened by this easement who must grant entry for the
exercise of these easements rights, and shall be liberally construed to ensure that such Owners
are not unreasonably inconvenienced or suffer damages by reason of such entry.
6.3.5 Utilities. An easement is hereby granted to each Owner upon, across, over, through and
under the Property for ingress, egress, installation, replacement, repair and maintenance of all
utility and service lines and systems including, but not limited to water, sewer, storm water
retention, gas, telephone, electricity, television, cable, or communication lines and systems for
those utilities initially installed by the Declarant. This easement shall benefit each Lot and the
providers of all such utilities. The location of certain of these utility easements is described in
the Plat. In addition, certain of the utility and service lines were or will be installed in the
buildings at locations which will not be identified on any map or plan. Those utility and service
lines were or will be installed between the floor and ceiling joists and in common "party" walls
based on field and construction considerations and in some instances without regard to
ownership boundaries. Consequently, each Owner is benefited by an easement for the continued
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use, maintenance, repair and replacement of those utility and service lines to the extent the same
are located outside the boundaries of such Owner's Lot.
7. ADMINISTRATION, USE AND MAINTENANCE OF COMMON ELEMENTS.
7.1 Association Responsibility for Maintaining Common Elements. The Association is
responsible for maintaining, repairing and replacing, as necessary, all improvements located in
the Common Elements.
7.2 Repair of Damaged Improvements in Common Elements. Any damage to Common
Elements or improvements thereon, including landscape plantings, sprinkler systems, fences,
etc., if any, by the Owners or their children or guests shall be repaired by the Association and the
responsible Owner will be obliged to immediately remit funds for the repair. If the Owner fails
to promptly make payment for such repairs, the payment due shall be treated as a late assessment
and the Owner shall be subject to the late payment and lien provisions described in Sections 5.6
and 5.13 and as otherwise set forth in this Declaration.
7.3 Alteration of the Common Elements. Nothing shall be altered, or constructed in, or
removed from the Common Elements, including fences and landscaping, except by the Declarant
or the Association. No Structures, vehicle parking, storage of vehicles or storage of materials
shall be allowed in Common Elements, except for on street parking, subject to such rules and
regulations as the Board may adopt from time to time.
7.4 Dumping in Common Elements. No trash, plant or grass clippings or other debris of any
kind shall be dumped, deposited or placed on or within the Common Elements, except for
garbage and recycling materials deposited in the containers specified for such materials.
7.5 Management. Each Owner expressly covenants that the Association and/or the
Declarant, during the Development Period, may delegate all or any portion of their management
authority to a managing agent, manager or officer of the Association and may enter into such
management contracts or other service contracts to provide for maintenance and the operation of
Common Elements and any portion thereof. Any management agreement or employment
agreement for the maintenance or management of the Common Elements or any portion thereof
shall be terminable by the Association without cause and without payment of penalty upon
ninety (90) days' written notice thereof, the term of any such agreement shall not exceed one (1)
year, renewable by agreement of the parties for successive one (1) year periods. Each Owner is
bound to observe the terms and conditions of any such management agreement or employment
contract, all of which shall be made available for inspection by any Owner on request.
8. MAINTENANCE OF LOTS.
8.1 Maintenance by Owner. Except where the obligation is imposed on the Association by
Section 8.2, each Lot and Residence shall be maintained by the Owner in a lawful, neat, clean
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and attractive condition at all times. Without limiting the generality of the foregoing, each
Owner's obligations include the following:
(i) Refuse. Each Lot shall be kept free of accumulations of litter, junk, containers,
equipment, building materials and other debris. All refuse shall be kept in sanitary containers
sealed from the view of any Lot. The containers shall be emptied regularly and their contents
disposed of off the Property. No grass cuttings, leaves, limbs, branches, and other debris from
vegetation shall be dumped or allowed to accumulate on any part of the Property, except that a
regularly tended compost device shall not be prohibited in any back yard.
(ii) Storage and Parking. No storage of goods, vehicles, boats, trailers, trucks, campers,
recreational vehicles, or any other equipment or device shall be permitted in open view from any
Lot or right-of-way, including driveway areas, with the exception Guests or invitees of Owners
may temporarily park in the driveway areas of an Owner's Lot while visiting. (Cars, boats,
trailers, trucks, campers and recreational vehicles shall be referred to as "Vehicles.")
Commercial -type trucks, campers, trailers, motorhomes, boats or motorcycles shall be parked
only inside the garage. Inoperative motor vehicles shall be parked and/or stored only inside the
garage. There shall be no parking of Vehicles in any Tract or common property, nor shall any
Vehicles or Owner block access to or from any Tract or common property by order of the
Snohomish County Fire Marshall's office.
(iii) In any case where the Owners located in a single Building have any disagreement with
respect to the maintenance of their respective portions of such Building, any such Owner shall
have the right to have such dispute resolved by the Board, by written notice to the Secretary and
President of the Association, with copies to all other Owners located in such Building. Each
affected Owner shall have the right to submit such written materials to the Board as it desires,
subject to such time and page limits as the Board may wish to impose. The Board shall within
forty-five (45) days after such notice hold a meeting for the purpose of resolving the issue, at
which each of the Owners shall be entitled to present its position, subject to such procedural
limitations as the Board may impose. The Board may resolve the issue at such time, or later in
executive session. The resolution of the Board shall be in writing, and shall be final and binding
on the parties. The Board may engage the services of counsel in connection therewith, and the
fees of such counsel may be (but are not required to be) specially assessed against any Owner
who is found to be substantially in the wrong. Any resolution by the Board may include having
the Board cause any work to be done, with the cost of the work specially assessed against the
Owners of the improvements in question, together with a twenty percent (20%) administrative
fee.
(iv) Certain Lot Landscaping. Repair and routine maintenance of landscaping located within
each Lot and repair of any damage to landscaping which is covered by insurance (including
damage which is below the amount of any deductible).
(v) Perimeter fencing. Repair and maintenance of any perimeter fencing and fencing located
between Lots by the owner on whose Lot the fencing is located.
8.2. Lot Maintenance by the Association.
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8.2.1 Basic Obligations. The Association shall be responsible for:
(i) Exterior Paint and Weather Sealing. Painting, sealing, flashing and caulking of exterior
building surfaces (including deck coverings).
(ii) Roof Maintenance and Replacement. Repairing and replacing roofs, gutters, and down
spouts. The Association shall be also be responsible for repair or replacement of interior damage
caused by leaks through portions of the exterior of Buildings that the Association is responsible
for maintaining, but excluding damage to improvements and betterments installed in the
Residence by an Owner. The Association may either repair or replace damaged portions of the
building, including finishes and fixtures, with materials and workmanship of like kind, quality
and condition as was originally installed by the Declarant or may pay the Owner an amount
equal to the cost of such repair and replacement in lieu of doing such work. All decisions
regarding maintenance and repair shall be determined by the Board.
(iii) Drainage, Sewer, Utility, and Private driveway. The Association shall be responsible for
the repair and replacement of the asphalt driveway and utility improvements located within the
thirty (30) foot private access and utility easement as shown on the plat map. The Association
shall be responsible for the repair and replacement of any sewer improvements located within the
ten (10) foot sewer easement.
8.2.2 Optional Obligations. The Association shall perform any maintenance, repair or
replacement that this Declaration imposes upon the Owners as their individual responsibility, if
the Owners have elected by a vote or consent of fifty-one percent (51 %) of the total voting
power (not just of a quorum) to delegate such responsibility to the Association.
8.2.3 Rightperform Maintenance Neglected by an Owner. In the event any Owner fails to
perform any obligation required under this Declaration including, after reasonable written notice
to the Owner, the Association may enter upon the Lot to perform the required obligation. All
costs related to the performance of such obligation shall be specially assessed to such Owner,
plus an administrative fee equal to twenty percent (20%) of such cost.
9. LAND USE RESTRICTIONS.
9.1 Residential Restrictions. All Lots within the Property shall be used solely for private
single-family residential purposes. Private single-family residences shall consist of no less than
one Lot. A garage may not be converted to living area space. No single Residence shall be
altered to provide a residence for more than one family.
9.2 Property Use Restrictions. No Lot shall be used in a fashion which unreasonably
interferes with any Owner's right to use and enjoy their respective Lots or Common Elements.
No Owner or their guests or invitees shall obstruct or block access through any of the Common
Elements. The Board, the Committee designated by it, or the Declarant during the Development
Period, shall determine whether any given use of the Lot or Common Elements unreasonably
interferes with those rights. Such determinations shall be conclusive.
Page 20 of 33
9.3 Prohibition of Nuisances and Untidy Conditions. No noxious or offensive activity shall
be conducted on any Lot or Common Elements, nor shall anything be done or maintained on the
Property which may be or become an activity or condition which unreasonably interferes with
the right of other Owners to use and enjoy any part of the Property. No activity or condition
shall be conducted or maintained on any part of the Property which detracts from the value of the
Property as a residential community.
9.4 Fences, Walls and Shrubs. Fences, walls or shrubs are not permitted to be constructed by
an owner to delineate the Lot lines of each Lot in the absence of the approval of (1) the Board,
and (2) determination whether such fences, walls or shrubs would interfere with utility easements
reflected on the face of the Plat and other easements elsewhere recorded. All fences constructed
in the Plat must be the same as the fences constructed by the Declarant, unless otherwise
authorized by the Declarant or the Board.
9.5 Temporary Structures. No structure of a temporary character or trailer, recreational
vehicle or other out buildings shall be used on any Lot at any time as a residence, either
temporarily or permanently for residential purposes, except for such structure or trailer used by
Declarant during the construction or sale of residences. All such structures shall be removed at
the expense of the Owner of the Lot on which the structure is located.
9.6 Sig_ns. No signs, billboards, or other advertising structure or device shall be displayed to
the public view on any Lot, except one sign not to exceed five (5) square feet in area, may be
placed on a Lot to offer the property for sale or rent. Signs also may be used by the Declarant
to advertise the property during the construction and sale period. All such signs shall be of a
quality equivalent to those used by Declarant. One sign will be allowed at the entry to the Plat,
unless otherwise authorized and approved by Declarant. Political yard signs not more than five
(5) square feet, of a temporary nature, will be allowed during campaign periods on Lots. Within
five (5) days of the occurrence of the election, such signs must be removed from Lots. The
Board may cause any sign placed on Property in violation of this provision to be removed or
destroyed. Notwithstanding the foregoing, the Declarant shall have the right to maintain such
signage on the Property as it deems necessary in its sole discretion incident to the sales process.
9.7 Animals. No animals, other than dogs, cats, caged birds, and tanked fish, may be kept on
any Lot. No more than two (2) mammalian pets may be kept on any Lot. Dogs shall not be
allowed to run at large, and no dog runs shall be permitted. Leashed animals are permitted
within roadways and Tracts. Efforts should be made by the person accompanying the animal to
remove animal waste deposited on lawns and rights -of -way. All pens and enclosures must be
approved by the Board prior to construction and shall be kept clean and odor free at all times. If
the investigation of the Board indicated that animals are kept in violation of this section, the
Board will give the Owner ten (10) days' written notice of the violation. Such violations must be
remedied by the Owner within ten (10) days. Failure to comply with the written notice will
result in a fine of twenty-five dollars ($25.00) per day. The Association shall be entitled to
reimbursement of all attorney fees and associated costs for any action taken to collect such fines.
If a Lot Owner violates provisions of this section regarding pens and enclosures on more than
two (2) occasions, the Board may require the Lot Owner to remove such structure. Persistent
Page 21 of 33
disturbances caused by a Lot Owner's barking dog may be considered an unreasonable
interference with the right of other Owners to use and enjoy their property. The Board may
require the Lot Owners to keep a barking dog indoors.
9.8 Protection of Trees. Homeowners shall not cut down trees located on Lots within the Plat
unless such trees are dead. It shall be necessary for homeowners to obtain the permission of the
Board before cutting or pruning such trees. This provision only applies to trees in the Plat as
developed by Declarant and trees planted prior to Declarant's development and shall not apply to
trees which owners' plant on their Lots.
9.9 Radio and Television Aerials and Satellite Dishes. No more than one satellite or
receiving device shall be installed on any Lot and the maximum diameter of any such device
shall be eighteen inches (18"). Satellite dishes shall be installed on the back yard side of all Lots.
9.10 Trash Containers and Debris. All Owners shall place their trash in the trash containers,
their yard waste in the yard waste containers and their recycled materials in the recycling
containers, and except on trash pickup days, such containers shall be located in the garage.
9.11 Noise and Offensive Activity. Owners, or any Occupant of the Property, shall refrain
from malting loud noises or playing musical instruments, radios, televisions, electronic music or
using amplifiers at noise levels that may disturb other Occupants of the Property or disturb
surrounding property owners in the neighborhood. No Owner shall mount any speakers or
equipment containing speakers on any Party Wall; provided that Owners may mount flat screen
televisions with stock speakers on Party Walls. Any disputes regarding such matters may at the
request of any Owner be resolved by the Board in the same manner as provided in Section 8.1
above for resolution of disputes concerning Lot maintenance. Owners are advised that living in a
townhome necessarily involves some compromise in acoustical privacy. Certain of the Lots are
adjacent to an arterial road, which also could create noise issues. In no event shall the
Association or the Declarant have any liability to any Owner with respect to noise issues.
9.12 Damage. Any damage to Common Elements by Owners, their children, contractors,
agents, visitors, friends, relatives or service personnel shall be repaired and restored by the
Association and any associated expense shall be assessed against the Owner(s) causing such
darnage as a type of assessment.
10. PARTY WALLS.
This Section 10 shall apply to the party walls between the adjoining Residences.
10.1 Maintenance. The Ownership of each party wall shall be divided between the adjoining
Owners so that each owns to the center of the wall, irrespective of whether the center of the wall
is located exactly on the boundary line of that Owner's lot and each Owner shall maintain and
repair its portion of the wall except as otherwise provided in Section 10.2 below.
10.2 Damage to Party Wall Without Significant Damage to Dwelling Units.
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10.2.1 If a party wall is damaged and (1) the damage was not caused by the fault or negligence
of either of the adjoining Owners of the wall, and (2) neither dwelling unit has suffered
Substantial Damage (defined below) other than that to the party wall, and (3) the damage is not
insured by the Association's property insurance policy, then the Owners of the adjoining
dwelling units shall each pay half of the cost of repairing or rebuilding the party wall. The wall
shall be repaired or rebuilt to substantially the same condition and in the same location as the
party wall was in immediately before the damage. Substantial Damage shall mean damage
which is estimated to cost more than five thousand dollars ($5,000.00) to repair.
10.2.2 If a party wall is damaged and (1) the damage was caused by the fault or negligence of
one (but not both) of the adjoining Owners of the wall, and (2) neither dwelling unit has suffered
Substantial Damage other than that to the party wall, then the Owner who caused the damages
shall at his/her sole cost and expense repair or rebuild the party wall to as nearly as practicable
the same condition and in the same location as the party wall was in immediately before the
damage and shall repair the resultant damage, if any, to the other dwelling unit. Each Owner of
the adjoining dwelling units shall have the right to full use of the party wall as repaired or rebuilt.
10.3 Damage to Party Wall with Other Damage to Dwelling Unit. If a party wall is damaged
and either or both of the adjoining units suffers Substantial Damage, the party wall will be
repaired or rebuilt with costs shared as provided in Section 10.2.1, and the cost of repairing the
damage to each unit shall be paid by the Owner of that unit.
10.4 Access to Party Wall Interior. Each Owner shall have the right, at its sole expense, to
drill into, cut into or otherwise gain access to the interior of a party wall for the purpose of
maintaining, repairing or restoring and, if consent be first obtained, remodeling or altering,
water, utility, soundproofing or other services or amenities to its unit subject to (1) the obligation
to restore the party wall to the same condition it was in immediately before such act, and (2)
responsibility to the Owner of the other dwelling unit adjoining the party wall for any damages
caused thereby.
10.5 No Alteration. No Owner may make any changes to or alterations to a party wall which
affects the adjacent Owner without the written consent of the other Owner.
10.6 Easement for Inadvertent Encroachment. Each Owner shall have an easement over the
adjacent Lot for the following purposes;
(a) To have the party wall remain and be rebuilt in its same location as when originally built;
(b) To use, for party wall purposes, that portion of the adjoining Residence upon which the
party wall is built; and
(c) For access through, in, or upon any portion of the adjoining Residence reasonably
necessary to effect repairs to, maintenance of or reconstruction of the party wall or that portion
of any foundation, exterior wall or roof of the structure which meets with, adjoins or is connected
to the party wall.
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10.7 Weatherproofing. Each Owner shall take all steps reasonably required to, upon or in its
Residence to protect the party wall from infestation of, damage from or exposure to: rain, snow,
hail, wind and other weather conditions; moisture, dry rot, rodents, termites and other damaging
or dangerous vermin or insects; and deterioration or other injury, whether sudden or cumulative,
from any use of or condition in his dwelling Residence except wear and tear incident to ordinary
and prudent use and condition of the unit.
10.8 Rights in the Event of Default. If an Owner fails to perform any act or make any
payment required by this Section 10, and such failure continues after five (5) days prior written
demand from adjoining Owner(s), then the adjoining Owner(s) may cure the default and charge
the defaulting Owner for the cost of the cure, which shall be due upon demand, with interest at
twelve percent (12%) per annum until repaid. Further, the curing Owner(s) shall have a lien
upon the defaulting Owner's property, which may be recorded and, if recorded, shall contain the
information required in a mechanic's lien. The lien may be foreclosed in the manner as provided
and with the priority with respect to mechanic's liens. In addition, the curing Owner(s) shall
have the right of access to, through, in or upon and to use the Residence and Lot of the defaulting
Owner for the purpose of performing the act.
10.9 Equipment, Utilities and Other Portions of a Party Wall. For the purposes of this Section,
the term "party wall" includes everything, if anything, located within such wall (such as studs,
framing, insulation, soundproofing material, pipes, wires, joints, junction boxes and other
materials or equipment related to utilities) and below the wall (such as the surface of the ground
and footings located in the ground.)
11. ALTERATIONS TO OR REBUILDING OF A RESIDENCE.
11.1 Uniformity of Appearance. Declarant has built or is building a series of single-family
townhomes on the Property as a unified development. One of the purposes of this Declaration is
to assure purchasers of homes in this project that the Residences will maintain a uniformity of
use and appearance and quality. Each Owner shall maintain the uniformity of appearance of the
exterior of its Residence, including with regard to paint colors and exterior finishes.
11.2 Uniformity of Design. Following the construction of the initial units by Declarant, no
Residence shall be altered (including the rebuilding of a damaged Residence) unless the
alteration is designed and constructed to match the design and construction of the previous
Residence and other Residences on the Property. If an Owner wishes to alter the exterior
appearance or design of a Residence (including without limitation paint color), it shall submit to
the Association detailed information regarding the proposed design and appearance of the
alteration. The Owner shall be permitted to make the alteration(s) only if the Owners of a
majority of the Lots, including the Owner(s) whose party walls adjoin the altered unit, approve
of the design and detailing of the alteration. Owners acknowledge that in rebuilding or
modifying the Residence on their Lot, there might not be clear demarcation or breaks in
materials or surfaces between their Residence and the adjoining Residence, and that it is the
rebuilding Owner's obligation (at such Owner's sole cost) to construct or reconstruct Residences
such that surface materials, textures, colors and finishes flow from one Residence to the other
without disruption.
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12. COMPLIANCE WITH GOVERNING DOCUMENTS.
12.1 Strict Compliance. Each person who occupies a Lot within the Development as an
Owner or Occupant shall comply strictly with the provisions of the Governing Documents and
with all decisions of Board (referred to in the Declaration as `Board Decisions") adopted
pursuant to the Governing Documents, including a decision made after a hearing required under
the Declaration. The acceptance of a deed, conveyance, or lease, or the entering into occupancy
of any Lot shall constitute an agreement that the provisions of the Governing Documents are
accepted and ratified by that Owner, Tenant or Resident and all provisions of the Governing
Documents shall be deemed and taken to be covenants running with the land and shall bind any
person having at any time any interest or estate in the Lot, as though the provisions were recited
and stipulated at length in each and every deed, conveyance or lease of the Lot.
12.2 Failure to Insist on Strict Performance; No Waiver. The Board shall exercise its business
judgment in determining what actions to take in the enforcement of the Governing Documents.
The failure of the Board to insist upon the strict performance of any of the terms, covenants,
conditions or restrictions of the Governing Documents, or to exercise any right or option
contained in the Governing Documents, or to serve any notice or to institute any action, shall not
be construed as a waiver or relinquishment for the future of that term, covenant, condition or
restriction, but the term, covenant, condition or restriction shall remain in full force and effect.
The receipt by the Board of any Assessment from an Owner with knowledge of any breach shall
not be deemed a waiver of a breach, and no waiver by the Board of any provision of the
Governing Documents shall be deemed to have been made unless expressed in writing and
signed by the appropriate officers on behalf of the Board.
12.3 Enforcement Procedures. In the event of any violation by an Owner or Occupant, the
Association and any aggrieved Owner shall have all of the rights and remedies which may be
provided for in the Governing Documents, or which may be available at law or in equity.
12.4 Internal Enforcement Procedures.
12.4.1 Complaint Review Panel. Except as hereinafter provided, the Board or committee
appointed by the Board shall serve as the Complaint Review Panel ("Panel") and shall
investigate, hear and determine all complaints concerning violations by any Owner, Tenant, or
other Resident pursuant to procedures set forth in reasonable policies adopted by the Board from
time to time. The Panel is authorized to order compliance with the applicable provision of the
Governing Documents or a Board Decision. Any member of the Panel who is incapable of
impartial, disinterested and objective consideration of the case shall disclose this to the Panel and
shall remove himself or herself from participation in the proceedings and have it so recorded in
the minutes.
12.4.2 Informal Dispute Resolution Procedure. The Association and Owners intend that an
informal process be followed prior to the initiation of a formal hearing process against any party
subject to the Governing Documents. To that end, any member, employee or agent of the
Association has the authority to request that an Owner, Tenant or Resident of any Lot cease or
Page 25 of 33
correct any act or perform any omission which appears to be in violation of the Governing
Documents or of any Board Decision. The informal request must be made, either verbally or in
writing, prior to initiation of the formal hearing process.
12.5 Judicial Enforcement. Failure to comply with a provision of the Governing Documents
or a decision of the Board or Complaint Review Panel shall be grounds for an action to recover
sums due for damages, fines and any costs incurred by the Association in connection with the
proceedings before the Panel, including reasonable attorney's fees incurred by the Association.
Such action shall be maintainable by the Association (acting through the Board) on behalf of the
Owners. Such violation shall further be sufficient grounds for the granting of injunctive relief in
such an action, and a showing of irreparable harm shall not be a prerequisite to issuance of such
injunctive relief. Nothing contained in the Declaration shall be deemed or construed as a waiver
of the Association's right to bring a judicial action without first exhausting the Association's
internal enforcement procedures in cases where the Board deems immediate judicial action to be
necessary or appropriate. In the event that the Board fails or refuses, after demand by an
aggrieved Owner, to take appropriate action to enforce compliance with any provision of the
Governing Documents or any Board or Panel Decision, an aggrieved Owner on his or her own
may maintain an action for damages or injunctive relief against the party failing to comply. In
any judicial action to enforce compliance with the Governing Documents, or a decision of the
Board or Panel, the prevailing party, including the Association, shall be entitled to recover from
the non -prevailing party, whether or not the action proceeds to judgment, its costs and a
reasonable sum for attorneys' fees incurred in conmection with the action, in addition to actual
costs.
12.6 Enforcement Against Occupants. The occupancy of a Lot by a Tenant and every lease
shall be subject to the Governing Documents of the Association. By entering into occupancy of
a Lot, a Tenant or other Occupant agrees to be bound by the Governing Documents. A breach of
the Governing Documents by a Tenant shall be deemed to be a breach of his or her lease. In the
event of a Violation by a tenant or other Occupant, the Board may notify the Owner, and the
Tenant or other Occupant, of the violation and demand that they be remedied through the
Owner's efforts within twenty (20) days after the notice. The Owner shall, within five (5) days of
such notice, serve upon the Tenant or other Occupant in the manner provided by law, a notice to
comply or quit the premises. If the violation is not remedied within the twenty (20) day period,
then the Owner shall immediately thereafter, at his or her own cost and expense, institute and
diligently prosecute an unlawful detainer action. The unlawful detainer action shall not be
compromised or settled without the prior written approval of the Board. If the Owner fails to
fulfill the foregoing obligation, then the Board shall have the right, but not the duty, to institute
and prosecute an unlawful detainer action as attorney -in -fact for the Owner and at the Owner's
sole cost and expense, including all legal fees incurred. The costs and expenses of the action
shall be deemed to constitute Assessments secured by a lien on the Lot involved as well as the
personal obligation of the Owner, and collection thereof may be enforced by the Board in the
same manner as any other Assessment. Each and every Owner does hereby automatically and
irrevocably name, constitute, appoint and confirm the Association as his or her attorney -in -fact
for the purposes described in this section.
13. LIMITATION OF LIABILITY.
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So long as a Director, or Association member, or Declarant, acting on behalf of the Association,
has acted in good faith, without willful or intentional misconduct, upon the basis of such actual
information as is then possessed by such Person, then no such Person shall be personally liable to
any Owner, or to any other Person, including the Association, for any damage, loss, or prejudice
suffered or claimed on account of any act, omission, error, or negligence of such Person.
14. INDEMNIFICATION.
Each Director or Officer of the Association acting on behalf of the Association shall be
indemnified by the Association against all expenses and liabilities, including attorney fees,
reasonably incurred by or imposed in connection with any proceeding to which such person may
be a party, or in which such person may become involved, by reason of holding or having held
such position, or any settlement thereof, whether or not such person holds such position at the
time such expenses or liabilities are incurred, except in such cases wherein such Director or
Officer is adjudged guilty of willful misfeasance in the performance of his or her duties;
provided, that in the event of a settlement, the indemnification shall apply only when the
Association approves such settlement and reimbursement as being for the best interests of the
Association.
15. INSURANCE.
15.1 General Requirements. Corninencing not later than the time of the first conveyance of a
Lot to a Person other than the Declarant, the Association shall maintain, to the extent reasonably
available, a policy or policies and bonds necessary to provide: (a) property insurance; (b)
commercial general liability insurance; (c) fidelity bonds; (d) workers' compensation insurance
to the extent required by applicable laws; (e) directors and officers liability insurance; and (f)
such other insurance as the Board deems advisable. The Board shall review at least annually the
adequacy of the Association's insurance coverage. All insurance shall be obtained from
insurance carriers with a minimum A VIII Best's financial rating and authorized to do business
in the state of Washington, and, if required, meet the specific requirements of any Federal
Mortgage Agency regarding the qualifications of insurance carriers. Notwithstanding any other
provisions herein, the Association shall continuously maintain in effect property and liability
insurance and fidelity bonds that meet the requirements for fee simple townhome projects
established by any Federal Mortgage Agency so long as any of them is a holder of a Mortgage or
Owner of a Lot, except to the extent such coverage is not available or has been waived in writing
by them. All such insurance policies and fidelity bonds shall provide that coverage may not be
canceled or substantially modified without at least thirty (30) days' (ten (10) days' cancellation
for nonpayment of premium) prior written notice to any and all insureds named therein,
including Owners, Mortgagees, and designated servicers of Mortgages.
15.2 Property Insurance. The property insurance policy shall, at the minimum, and subject to
deductible amounts consistent with Fannie Mae requirements, provide all risk or special cause of
loss coverage in an amount equal to the full replacement cost of the Common Elements,
equipment, improvements and betterments on each Lot installed by the Declarant, and all
fixtures and personal property belonging to the Association with an "Agreed Amount
Page 27 of 33
Endorsement" and, if required by a Federal Mortgage Agency, construction code endorsements,
such as a "Demolition Cost Endorsement," a "Contingent Liability from Operation of Building
Laws Endorsement," an "Increased Cost of Construction Endorsement," "Combined Business
Interruption Coverage,?' "Boiler and Machinery Coverage," and such other endorsements as any
Federal Mortgage Agency deems necessary and are available. The policy shall provide for
separate coverage for each Residence to the replacement cost thereof, and a separate loss payable
endorsement in favor of the Mortgagee or Mortgagees of each Lot. The Association or insurance
trustee, if any, shall hold insurance proceeds in trust for the Owners and their Mortgagees, as
their interests may appear. Each Owner and the Owner's Mortgagee, if any, shall be
beneficiaries of the policy in accordance with their respective Common Expense Liabilities.
Certificates of insurance shall be issued to each Owner and Mortgagee upon request.
15.3 Liability Insurance. The policy of public liability insurance shall insure the Board, the
Association, the Owners, and the managing agent, and cover all of the Common Elements in the
Project with a "Severability of Interest Endorsement" or equivalent coverage which would
preclude the insurer from denying the claim of an Owner because of the negligent acts of the
Association or of another Owner, and shall cover liability of the insureds for property damage
and bodily injury and death of persons arising out of the operation, maintenance, and use of the
Common Elements, liability in connection with employment contracts of the Association, host
liquor liability, employers' liability (stop gap) insurance, non -owned and hired automobile
liability insurance, and such other risks as are customarily covered with respect to projects of
similar construction, location and use. The limits of liability shall be in amounts generally
required by Mortgagees for projects of similar construction, location and use but shall be at least
one million dollars ($1,000,000.00) bodily injury and property damage per occurrence and two
million dollars ($2,000,000) general aggregate.
15.4 Insurance Trustee; Power of Attorney. The named insured under the policies referred to
above shall be the Association, as trustee for each of the Owners. The insurance proceeds may be
made payable to any trustee with which the Association enters into an insurance trust agreement,
or any successor trustee, who shall have exclusive authority to negotiate losses under the
policies. The proceeds must be disbursed first for the repair or restoration of the damaged
property, and Lot Owners and lienholders are not entitled to receive payment of any portion of
the proceeds unless there is a surplus of proceeds after the Property has been completely repaired
or restored. Each Owner appoints the Association, or any insurance trustee or successor trustee
designated by the Association, as attorney -in -fact for the purpose of purchasing and maintaining
such insurance, including the collection and appropriate disposition of the proceeds thereof, the
negotiation of losses and execution of releases of liability, the execution of all documents and the
performance of all other acts necessary to accomplish such purposes.
15.5 Additional Policy Provisions. The insurance obtained shall contain the following
provisions and limitations:
(a) Each Lot Owner is an insured Person under the policy with respect to liability arising out
of the Owner's interest in the Plat or membership in the Association.
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(b) Such policies shall not provide for contribution by (or Assessment against) Mortgagees or
become a lien on the Property superior to the lien of a First Mortgage. If, at the time of the loss
under the policy, there is other insurance in the name of the Owner covering the same risk
covered by the policy, the Association's policy provides primary Insurance.
(c) Coverage shall not be prejudiced by: (a) any act, omission or neglect of the Owners when
such act or neglect is not within the scope of the Owner's authority on behalf of the Association,
or (b) failure of the Association to comply with any warranty or condition with regard to any
portion of the premises over which the Association has no control.
(d) A waiver of subrogation by the insurer as to any and all claims against the Association,
the Owner, and/or their respective agents, members of the Owner's household, employees, or
lessees, and of any defenses based upon co-insurance or upon invalidity arising from the acts of
the insured.
(e) A standard mortgagee clause which shall:
(i) Provide that any reference to a mortgagee in the policy shall mean and include all holders
of Mortgages of any Unit or Unit lease or sublease in their respective order of preference,
whether or not named therein;
(ii) Provide that such insurance as to the interest of any Mortgagee shall not be invalidated by
any act or neglect of the Board or Owners or any Persons under any of them;
(iii) Waive any provision invalidating such mortgagee clause by reason of the failure of any
Mortgagee to notify the insurer of any hazardous use or vacancy, any requirement that the
Mortgagee pay any premium thereon, and any contribution clause; and
(iv) Provide that, without affecting any protection afforded by such mortgagee clause, any
proceeds payable under such policy shall be payable to the Association or the insurance trustee.
15.6 Fidelity Bond Directors and Officers Insurances. The required fidelity bonds shall afford
coverage to protect against dishonest acts on the part of officers, directors, trustees, and
employees of the Association and all other Persons who handle or are responsible for handling
funds of, or fiends administered by the Association. The Managing Agent shall maintain fidelity
bonds for its officers, employees, and agents who handle or who are responsible for handling
funds of, or fiends administered by the Association. All such fidelity bonds shall name the
Association as an obligee and shall be not less than three months' aggregate Assessments. The
bonds shall contain waivers of any defense based upon the exclusion of Persons who serve
without compensation from any definition of "employee" or similar expression. The Association
shall obtain directors and officers liability insurance which shall at a minimum insure each
director and officer of the Association against any loss arising from any claim for any alleged
wrongful act made by such person while acting in his/her capacity as director or officer of the
Association.
Page 29 of 33
15.7 Owner's Insurance. Each Owner shall maintain property insurance in reasonable
amounts on all of its furnishings and personal property located in the Residence. The Board
shall have the authority to further define or expand such requirement by rule, and to prescribe
enforcement mechanisms.
16. DAMAGE OR DESTRUCTION; RECONSTRUCTION.
16.1 Obligation to Rebuild. If all or any portion of any Common Element is damaged, the
Association shall repair the same, and any uninsured portion of such cost shall be a Common
Expense. If any Residence is damaged or destroyed by fire or other casualty, it shall be the duty
of the Association to rebuild, repair or reconstruct the Residence in a manner which will restore
it substantially to its appearance and condition immediately prior to the casualty, acting with all
reasonable diligence and as soon as reasonably possible. Except as provided by statute, hazard
insurance proceeds received by the Board shall be used exclusively for repair, replacement or
reconstruction unless the Board and seventy-five percent (75%) of the Owners, including the
Owner of any Unit which has been damaged or destroyed have given their prior written approval
to another use.
16.2 Liability for Uninsured Amounts. Notwithstanding any other provision of this
Declaration, and except to the extent that a lack of insurance results from the negligence or
breach of a duty to insure the Board:
(a) Liability for the amount of damage within the limits of any applicable insurance
deductible or otherwise uninsured shall be the responsibility of an individual Owner where the
damage results from a negligent or intentional action or omission by an Owner, or that Owner's
Tenant, or the family, servants, employees, agents, visitors or licensees of that Owner or Tenant,
or from the failure of or failure to maintain any portion of the Unit, including any appliance,
equipment, or fixture in a Unit, which that Owner is responsible to maintain in good working
order and condition. The amount to be paid by the Unit Owner shall be a special Assessment
allocated to that Owner.
(b) Except as provided in Paragraph (a) above, or where the damage is a result of the sole
fault of the Association, the liability for the amount of damage within the limits of any applicable
deductible on a policy of insurance to the Association shall be the responsibility of an individual
Owner where the damage involved is limited solely to damage to the Owner's Unit. The amount
to be paid by the Unit Owner shall be a special Assessment allocated to that Owner.
(c) Except as provided in Paragraphs(a) and (b) above, or where the damage is a result of the
sole fault of the Association, liability for the amount of damage within the limits of any
applicable insurance deductible on a policy of insurance issued to the Association shall be pro-
rated between the Association and any involved Owners in proportion to the relative amounts of
damage to the Common Elements and to each of the affected Units, where the damage involves
both the Common Elements and/or one or more Units. The amount to be paid by the Unit
Owner shall be a special Assessment allocated to that Owner.
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17. AMENDMENTS TO GOVERNING DOCUMENTS.
17.1 Prior to the Transition Date. Prior to the Transition Date, Declarant shall have the sole
right to amend the Governing Documents, with the exception of an amendment changing the
voting power or portion of Assessments appurtenant to each Lot.
17.2 After the Transition Date. After the Transition Date, any Owner may propose
amendments to this Declaration to the Association. Any member of the Association may
propose an amendment to the other members by calling a meeting for that purpose. The consent
of ninety percent (90%) of all Owners shall be required for adoption of an amendment changing
the voting power or portion of Assessments appurtenant to each Lot. All other amendments shall
be adopted if approved by a majority of the votes (not just a quorum). Once an amendment has
been adopted by the Association, the amendment will become effective when a certificate of the
amendment, executed by the President of the Board, has been recorded in the county where the
Property is located.
18. MORTGAGE PROTECTION.
18.1 Notices. The Association shall provide to any First Mortgagee which has requested the
same, written notice of (1) casualty or condemnation, (ii) the fact an Owner has for more than
thirty (30) days failed to meet any obligation under the Governing Documents, or (iii) lapse of
insurance. Any First Mortgagee shall, upon request, be entitled to receive written notice of all
meetings of the Association and be permitted to designate a representative to attend all such
meetings.
18.2 Effect of Declaration Amendments. No amendment to this Declaration shall be effective
to modify, change, limit or alter the rights expressly conferred upon First Mortgagees in this
instrument with respect to any unsatisfied mortgage duly recorded unless the amendment shall be
consented to in writing by such First Mortgagee. Any provisions of this Declaration conferring
rights upon First Mortgagees which are inconsistent with any other provisions of this Declaration
shall control over such inconsistent provisions.
18.3 Inspection of Books. First Mortgagees shall be entitled to inspect at all reasonable hours
of weekdays all of the books and records of the Association, and, upon request, to receive the
annual financial statement of the Association within ninety (90) days following the end of the
fiscal year of the Association.
18.4 Priority. A breach of any of the provisions, covenants, restrictions or limitations hereof
or the recordation of any Association Lien or the pursuit of any remedy hereunder shall not
defeat or render invalid the lien of any Mortgage of Record. As provided in section 5.12, each
First Mortgagee which obtains title to a Lot by judicial or non judicial foreclosure or by deed in
lieu of foreclosure, shall take title to such Lot free and clear of any claims for unpaid
Assessments or charges against such Lot which accrued prior to the time such First Mortgagee
acquires title to such Lot.
19. MISCELLANEOUS.
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19.1 Notice. All notices given under the provisions of this Declaration shall be in writing and
may be delivered either personally or by mail. If delivery is made by mail, the notice shall be
deemed to have been delivered on the third day of regular mail delivery after a copy has been
deposited in the United States mail, first class, postage prepaid, addressed to each Lot.
19.2 Severability. The provisions of this Declaration shall be independent and severable, and
the unenforceability of any one provision shall not affect the enforceability of any other
provision, if the remainder affects the common plan. This Declaration shall be effective upon
recording.
19.3 Assignment by Declarant. Declarant reserves the right to assign or delegate all or any of
its rights, duties, and obligations created under this Declaration.
IN WITNESS WHEREOF, the undersigned, being the Declarant herein, has hereunto set its hand
and seal this 22nd day of February, 2022.
DECLARANT:
Randy N. Clark and Judy L. Clark Family Limited
Partnership, a Washington limited partnership,
By: � 1-t... L`
Randy X. Clark, General Partner
STATE OF WASHINGTON )
) ss.
COUNTY OF SNOHOMISH)
I certify that I know or have satisfactory evidence that Randy N. Clark is the person who
appeared before me and said person acknowledged that he signed this instrument, on oath stated
that he was authorized to execute the instrument and acknowledged it as a General Partner of
Randy N. Clark and Judy L. Clark Family Limited Partnership, to be the free and voluntary act
of such party for the uses and purposes mentioned in this instrument.
GIVEN under my hand and official seal this 22nd day of February, 2022.
�tAEN T -
r NOTARY
PUBUG ..
[Print Name] D D vt L 1- A S W Ri it %-e
Notary Public in and for the State of
Washington residing at E d m c r► A l -W A
My commission expires K �•Ld
Page 32 of 33
EXHIBIT A
DECLARATION OF COVENANTS,
CONDITIONS, AND RESTRICTIONS
Legal Description of the Property
PARCEL B, CITY OF EDMONDS BOUNDARY LINE ADJUSTMENT NO. PLN20190037,
RECORDED UNDER RECORDING NO 201910185003, RECORDS OF SNOHOMISH
COUNTY, WASHINGTON, BEING A PORTION OF LOTS 6 AND 11, PLAT OF
HAWARDEN TRACTS, ACCORDING TO THE PLAT THEREOF RECORDED IN
VOLUME 14 OF PLATS, PAGE 69, RECORDS OF SNOHOMISH COUNTY,
WASHINGTON.
SITUATE IN THE COUNTY OF SNOHOMISH, STATE OF WASHINGTON.
Page 33 of 33