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Railway Road.CCRs.PreliminaryDraft.02.01.2023XXX CCRS 1 After Recording Return To: Blue Fern Management LLC 18300 Redmond Way Suite 120 Redmond, WA 98052 DECLARATION OF COVENANTS, EASEMENTS AND RESTRICTIONS FOR THE XXX COMMUNITY (A Plat Community, subject to Ch. 64.90 RCW) Grantor/Declarant: BLUE FERN MANAGEMENT, LLC, a Washington limited liability company Additional names on pg. N/A Grantee: BLUE FERN MANAGEMENT LLC, a Washington limited liability company Additional names on pg. N/A Abbreviated Legal Description: ____________________________________ (Full legal on Exhibit A) TPN: __________________________________ Reference # (if applicable): N/A This DECLARATION OF COVENANTS, EASEMENTS AND RESTRICTIONS FOR THE XXX COMMUNITY (this “Declaration”) is made by BLUE FERN MANAGEMENT, LLC, a Washington limited liability company (“Declarant”) as of this ____ day of ______________, ______. Declarant is the owner of certain real property (the “Property”) in City of ___________, ________________ County, Washington, legally described on Exhibit A hereto. Declarant has applied for a subdivision of the Property (the “Subdivision”). As a XXX CCRS 2 condition of such approval, Declarant desires to subject the Property to the following covenants, easements, and restrictions. NOW, THEREFORE, Declarant declares that the Property is subject to the terms of this Declaration. 1. DEFINITIONS 1.1 Words Defined. The following terms shall have the following meanings and all definitions shall be applicable to the singular and plural forms of such terms: 1.1.1 “Association” shall mean the _______________________ Owners Association, its successor and assigns. 1.1.2 “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 (b) the holder of a First Mortgage. 1.1.3 “Ingress, Egress and Utilities Easement” and the “Ingress, Egress and Utilities Easement Area” shall have the meanings set forth in Section 2. 1.1.4 “Lot” shall mean any legally platted plot of land shown upon any recorded subdivision map of the Property. 1.1.5 “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. 1.1.6 “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. 1.1.7 “Owner” shall mean the record owner, whether one or more Persons, of fee simple title to a Lot within the Property, including a contract purchaser entitled to beneficial possession. 1.1.8 “Person” shall mean an individual, corporation, partnership, association, trustee, or other legal entity. 1.1.9. “Shared Improvements” shall have the meaning set forth in Section 3. 1.1.10 “Structure” shall mean any building, fence, wall, driveway, walkway, patio, garage, storage shed, carport, mailboxes, hot tub, rockery, dog run or the like. XXX CCRS 3 1.1.11. “Transition Date” shall have the meaning set forth in Section 8. 2. INGRESS, EGRESS AND UTILITIES EASEMENT. Declarant hereby confirms the easement (the “Ingress, Egress and Utilities Easement”) created by and shown on the Subdivision and as shown on the Site Plan at Exhibit B (the “Ingress, Egress and Utilities Easement Area”) for ingress and egress to and from the Lots and for the repair, maintenance and replacement of the paving, lighting, drainage improvements and utilities located within the Ingress, Egress and Utilities Easement Area. Vehicle parking and storage of vehicles or materials shall not be allowed in the Ingress, Egress and Utilities Easement Area. The Ingress, Egress and Utilities Easement shall run with the land within the Ingress, Egress and Utilities Easement Area for the benefit of all of the Lots. The Association shall be responsible for maintenance and repair of the paving, drainage improvements and utilities in the Ingress, Egress and Utilities Easement Area and expenses relating thereto shall be expenses of the Association, assessed against the Owners pursuant to Section 8. 3. EASEMENT FOR SHARED IMPROVEMENTS. Declarant has or will install the following improvements which will serve multiple Lots (the “Shared Improvements”, located in the “Shared Improvements Area” graphically depicted on the Exhibit B Site Plan): [complete if applicable: (a) storm drain and/or storm detention or bio-infiltration facilities,(b) landscaping improvements, curbs, driveway and sidewalks located in the Shared Improvements Area; (c) grouped mailboxes, and (d) access trails]. Declarant hereby creates a non-exclusive easement (the “Shared Improvements Easement”) for placement, use, maintenance and repair of the Shared Improvements. The Shared Improvements Easement shall run with the land and be binding on those portions on the Property (i) upon which are located the Shared Improvements, and (ii) the adjacent areas necessary or appropriate for use of, access to and maintenance of the Shared Improvements. The Shared Improvements shall benefit all the Lots. The Association shall be responsible for operation, maintenance and repair of the Shared Improvements and expenses relating thereto shall be expenses of the Association, assessed against the Owners pursuant to Section 8. 4. MAINTENANCE AND USE. 4.1 Maintenance. Each Owner shall keep the interior and exterior of the Structures on its Lot, as well as the landscaping on the Lot, in a clean and sanitary condition, free of rodents and pests, and in good order, condition and repair and shall do all redecorating, painting, landscaping, and maintenance at any time necessary to maintain the appearance and condition of the Structure and the Lot. 4.2 Residential Use. The Lots shall be used only for single family residential purposes, and only one single family residence shall be located on each Lot. XXX CCRS 4 4.3 Parking. 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. 4.4 Signs. Except as otherwise required by applicable law, no sign of any kind shall be displayed to the public view on or from any Lot, except for (i) address signage; (ii) one professionally created sign of not more than one square foot displaying the resident’s name; and (iii) one sign of not more than five square feet advertising the Lot for sale or rent. This Section shall not apply to the Declarant. 4.5 Animals. The only animals permitted shall be dogs, cats and other household pets. No livestock, poultry, or other animals not normally kept as pets shall be allowed or kept in any Unit. Pets shall not be kept, bred or used for any commercial purpose. All animal enclosures must be kept in a clean, neat and odor-free condition at all times. Notwithstanding anything set forth herein all Owners shall comply with all applicable governmental laws, codes, ordinances, and relations pertaining to animals. 4.6 Temporary Structures. No Structure of a temporary character, trailer, tent, shack, garage, barn, or other outbuilding shall be installed, placed or used on any Lot, either temporarily or permanently. 4.7 Clothes Lines. No washing, rugs, clothing, apparel or similar article shall be hung from the exterior of any Structure. 4.8 Radio and Television Aerials and Satellite Dishes. No television or radio aerial or satellite receiving dishes or similar devices shall be erected or placed so that it is visible from the entry to the Property or the entry areas of any of the other homes. 4.9 Trash Containers and Debris. All trash shall be placed in sanitary containers screened or enclosed in a garage so as not to be visible from adjoining Structures or streets or roadways. 4.10 Offensive Activity. No trade, craft, business, profession, commercial or manufacturing enterprise or business or commercial activity of any kind, including day schools, nurseries, or church schools (except in-home day care for not more than two children, provided that there shall be no external signage of such activity), shall be conducted or permitted on any Lot, nor shall goods, equipment, vehicles or materials used in connection therewith, be kept, parked, stored, dismantled or repaired outside of any Lot. Owners, or any occupant of the Property, shall refrain from making 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. XXX CCRS 5 4.11 Damage. Any damage to Shared Improvements by Owners, their children, contractors, agents, visitors, friends, relatives or service personnel shall be repaired and restored to like new condition by such Owner within twelve (12) days from the occurrence of such damage. 5. INTENTIONALLY OMITTED 6. ALTERATIONS TO OR REBUILDING OF A STRUCTURE 6.1 Uniformity of Appearance. Declarant is in the process of constructing ______ single family residences 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 Structures will maintain a uniformity of use and appearance and quality. Each Owner shall maintain the uniformity of appearance of the exterior of its Structure, including with regard to paint colors and exterior finishes. 6.2 Uniformity of Design. Following the construction of the initial units by Declarant, no Structure shall be altered (including the rebuilding of a damaged Structure) unless the alteration is designed to be compatible with the design of the other Structures on the Property. If an Owner wishes to alter the exterior appearance or design of a Structure, 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 only if the Association and the Owner(s) whose party wall’s adjoin the altered unit, approve of the alteration. 6.3 Design Criteria and Aesthetic Standards. The Association may adopt rules to establish and enforce construction and design criteria and aesthetic standards for the Property. If adopted, such rules shall include procedures for enforcement of the standards and for approval of construction applications, including a reasonable time within which the Association must act after an application is submitted and the consequences of its failure to act. 7. HOMEOWNERS ASSOCIATION. 7.1 Form of Association and Qualification for Membership. The Owners of Lots within the Property shall constitute the members of the Association. Each Owner (including Declarant) shall be a member of the Association. Each Lot shall be entitled to one vote, for a total of _____ votes for the Association as a whole. The persons constituting an Owner shall be entitled to one vote for each Lot owned; provided, that if a Lot has been sold on contract, the contract purchaser shall exercise the rights of an Owner for purposes of the Association and this Declaration except as hereinafter limited, and shall be the voting representative unless otherwise specified. Ownership of a Lot shall be the XXX CCRS 6 sole qualification for membership in the Association. The Association membership of each person constituting an Owner (including Declarant) shall be appurtenant to the Lot giving rise to such membership. 7.2 Voting. Except where otherwise specified in this Declaration, the Association shall act by a simple majority vote of the total votes (51% of the total votes). If a Lot is owned by more than one person and only one of them is present or represented at a meeting, the one who is present or represented will represent the Owner. The vote for a Lot must be cast as a single vote, and fractional votes shall not be allowed. If joint owners are unable to agree among themselves how their vote shall be cast, they shall lose their right to vote on the matter in question. An Owner may, by written notice to the Manager, designate a voting representative for the Lot. The designated voting representative need not be an Owner. The designation may be revoked at any time by written notice to the Manager from a Person having an ownership interest in a Lot, or by actual notice to the Manager of the death or judicially declared incompetence of any Person with an ownership interest in the Lot. This power of designation and revocation may be exercised by the guardian of an Owner, the attorney-in-fact for the Owner under a durable power of attorney, and the administrator or executor of an Owner’s estate. If no designation has been made, or if a designation has been revoked and no new designation has been made, the voting representative of each Lot shall be the group composed of all of its Owners. 7.3 Manager. The board of directors of the Association, by majority vote, shall retain a professional property management company to serve as the Manager of the Association. The Manager shall serve until that entity either resigns or a new Manager is elected by a majority vote. The Manager shall be responsible for calling the annual meeting of the Association. The Manager shall keep accurate books and records of the funds collected and expended by the Association, together with supporting documentation such as bank statements and copies of invoices. The books and records shall be available for examination by Owners, Mortgagees, and the agents or attorneys of either of them, upon reasonable notice to the Manager and shall be passed on to the next Manager. The Manager shall arrange for operation, maintenance and repair of the Shared Improvements and the Ingress, Egress and Utilities Easement, including payment of the utility charges for water and power and any other utilities used by the Shared Improvements, and for the insurance as provided in Section 13. 7.4 Annual and Special Meetings. Within the period commencing 30 days before the Transition Date and ending 30 days after the Transition Date, there shall be a meeting of the members of the Association and thereafter there shall be an annual meeting of the members of the Association each year at such reasonable place and time as may be designated by written notice from the Manager delivered to the Owners not less than fourteen days before, and not more than fifty days before, the meeting date. At the first such meeting, and at each annual meeting thereafter, the Owners shall elect, or re-elect, by majority vote, individuals to serve on the Board of Directors and officers for the XXX CCRS 7 Association. The Manager shall present at the meeting a summary of the funds collected and expended since the last meeting. At the annual meeting, the Manager shall present a proposed annual budget for consideration by the Owners and the Owners shall adopt an annual budget at the annual meeting. Special meetings of the members of the Association may be called by any member at any time upon not less than 14 days (but no more than fifty days) prior written notice to all Owners for any purpose. Any First Mortgagee of a Lot may attend or designate a representative to attend the meetings of the Association. Member meetings may be conducted by telephonic, video, or other conferencing method in accordance with RCW 64.90.445(1)(f). 7.5 Enforcement of Declaration, Etc. Each member shall have the right to enforce the provisions of this Declaration. The failure of any Owner to comply with the provisions of this Declaration, or the rules and regulations of the Association will give rise to a cause of action in any aggrieved Owner for recovery of damages, or injunctive relief, or both. If a legal action is brought to interpret or enforce compliance with the provisions of this Declaration, or the rules or regulations of the Association, the prevailing party shall be entitled to judgment against the other party for its reasonable expenses, court costs, and attorneys’ fees in the amount awarded by the Court. 8 ASSESSMENT FOR COMMON EXPENSES 8.1 Common Expenses. All expenses incurred by the Association or the Manager to perform the obligations of the Association (the “Common Expenses”) shall be allocated evenly among the Lots. The Manager, on behalf of the Association, shall assess each Lot [for _________ % of the total amount due][in proportion to their allocated interests as stated in attached Exhibit C]. Examples of the Common Expenses are as follows: costs of maintaining, repairing and replacing the Shared Improvements; costs of maintaining, repairing and replacing improvements located in the Ingress, Egress and Utilities Easement Area, including paving and utilities, and insurance costs. The assessment may be collected on a monthly, quarterly or annual basis and shall be due and payable to the Manager within 30 days after the date of the notice. The notice shall include detailed information regarding the amounts due. 8.2 Certificate of Unpaid Assessments. Upon the request of any Owner or Mortgagee or prospective Owner or prospective Mortgagee of a Lot, the Manager will furnish a statement of the amount, if any, of unpaid assessments charged to the Lot. The statement shall be conclusive upon the Association as to the amount of such indebtedness on the date of the statement in favor of all purchasers and Mortgagees of the Lot who rely on the statement in good faith. All assessments shall belong to the Association. 8.3 Initial Contribution, Annual Assessments. Declarant shall be responsible for paying the expenses of the Association until ____________________________ [such time as Declarant sells the last of the units] (the “Transition Date”). Following the XXX CCRS 8 Transition Date, the initial annual assessment shall be set by the Manager, and shall be based on the budget of Common Expenses for the next 12 months. 9. LIEN AND COLLECTION OF ASSESSMENTS 9.1 Assessments Are a Lien; Priority. All assessments made under the authority of this Declaration shall constitute a lien on the Lot and all its appurtenances from the date the assessment becomes due and until fully paid. The lien for such unpaid assessments shall be subordinate to tax liens on the Lot in favor of any assessing unit and/or special district, and to all sums unpaid on all First Mortgages of record, but to the extent permitted by applicable law, shall have priority over all other liens against the Lot. The lien shall also be prior to First Mortgages for assessments for common expenses (excluding any amounts for capital improvements), based on the periodic budget adopted by the Association pursuant to Chapter 64.90 RCW which would have become due during the six (6) months immediately preceding the institution of proceedings to foreclose either the Association’s lien or a Mortgagee provided the notice and other applicable requirements of RCW 64.90.485 are satisfied. Subject to the preceding exception, a First Mortgagee that obtains possession through a Mortgage foreclosure or deed of trust sale, or by taking a deed in lieu of foreclosure or sale, or a purchaser at a foreclosure sale, shall take the Lot free of any claims for the share of common expenses or assessments by the Association chargeable to the Lot which became due before such possession, but will be liable for the common expenses and assessments that accrue after the taking of possession. The Lot’s past-due share of common expenses or assessments shall become new common expenses chargeable to each Owner, including the Mortgagee or foreclosure sale purchaser. Notwithstanding any of the foregoing, however, both the Owner and any real estate contract vendor shall continue to be personally liable for past due assessments as provided in Section 9.3. For purposes of this Section, “Mortgage” does not include a real estate contract and “Mortgagee” does not include the vendor or the assignee or designee of a vendor of a real estate contract. 9.2 Lien May Be Foreclosed. The lien for delinquent assessments may be foreclosed judicially or non-judicially by the Manager, acting on behalf of the Association, in like manner as the foreclosure of a mortgage of real property. The Manager, acting on behalf of the Association, shall have the power to bid in the Lot at the foreclosure sale, and to acquire and hold, lease, mortgage, and convey the same. To enable Manager to commence a non-judicial foreclosure, Declarant hereby grants, bargains, sells, and conveys to Chicago Title Insurance Company (“Trustee”), in trust, with power of sale, all Declarant’s right, title, and interest, in the Property to secure the obligations of the Members to the Association for payment of assessments. The Lots are not used principally for agricultural purposes. The power of sale granted in this Section is operative in the case of a default in the obligation to pay assessments. XXX CCRS 9 9.3 Assessments are Personal Obligations. In addition to constituting a lien on the Lot, all sums assessed by Association chargeable to any Lot together with i nterest, late charges, costs and attorneys’ fees in the event of delinquency, shall be the joint and several personal obligations of the Owner and any contract vendor of the Lot when the assessment is made. Suit to recover personal judgment for any delinquent assessments shall be maintainable without foreclosing or waiving the liens securing them. 9.4 Late Charges and Interest on Delinquent Assessments. The Manager may from time to time charge a late charge of 5% of the delinquent amount for assessments not paid within 10 days after the date when due. Delinquent assessments shall bear interest at the lesser of 12% per annum or the highest rate permitted by law. 9.5 Remedies Cumulative. The remedies provided herein are cumulative and the Association may pursue them, and any other remedies which may be available under law although not expressed herein, either concurrently or in any order. 10. FAILURE TO INSIST ON STRICT PERFORMANCE NO WAIVER. The failure of the Manager in any instance to insist upon the strict compliance with this Declaration or to exercise any right, or to serve any notice or to institute any action, shall not be construed as a waiver or a relinquishment for the future of any term, covenant, condition, or restriction. The receipt by the Manager of payment of any assessment from an Owner, with knowledge of any breach by the Owner, shall not be a waiver of the breach. No waiver of any requirement shall be effective unless expressed in writing and signed by the President of the Board of Directors of the Association. 11. LIMITATION OF LIABILITY So long as a Manager, or Association member or officer, 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. 12. INDEMNIFICATION. Each Manager or Association member or officer acting on behalf of the Association shall be indemnified by the Association against all expenses and liabilities, including attorneys’ 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 Manager is adjudged guilty of willful misfeasance in the performance of their XXX CCRS 10 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. 13. INSURANCE. The Association shall purchase and maintain as a common expense a policy or policies of (i) commercial general liability insurance covering the Association and members of the Association in a minimum amount of $1,000,000; (ii) property damage insurance on all of the Shared Improvements in the amount of their replacement cost, and (iii) insurance for the protection of the Association’s Managers and the Board of Directors from personal liability in the management of the Association’s affairs; and such other insurance as the Association deems advisable. 14. AMENDMENTS OF DECLARATION. 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 affirmative vote of (i) Owners who represent at least sixty-seven percent (67%) of the total allocated votes in the Association, and (ii) the holders of at least fifty one percent (51%) of the first Mortgages (based on one (1) vote for each first mortgage owned), shall be required for any amendments of a material nature to this Declaration provided the unanimous consent of all Owners and First Mortgagees shall be required to adopt an amendment changing the voting power or portion of assessments appurtenant to each Lot. All other amendments shall be adopted if approved by a simple majority (51%) of votes. Once an amendment has been adopted by the Association, the amendment will become effective when a certificate of the amendment, executed by the Manager, has been recorded in the real property records of ______________ County, Washington. 15. DURATION. The covenants, conditions, and restrictions of this Declaration shall run with and bind the Property and shall inure to the benefit of and be enforceable by the Owners, their respective legal representatives, heirs, successors, and assigns, in perpetuity from the date this Declaration is recorded, unless an instrument signed by sixty-seven percent (67%) of the then Owners has been recorded agreeing to terminate the covenants, conditions and restrictions, subject to plat requirements or any requirements of applicable law. 16. RESERVATION OF DECLARANT’S RIGHT TO AMEND. 16.1 Amendment by Declarant. Declarant reserves the right to amend the Declaration as may be necessary to comply with Federal Home Loan Mortgage Corporation (“FHLMC”) or Federal National Mortgage Association (“FNMA”) or Federal XXX CCRS 11 Housing Administration (“FHA”) regulations or requirements as necessary to enable the holders of first mortgages or deeds of trust to sell first mortgages or deeds of trust to FHLMC, FHA or FNMA or if such amendment is necessary to secure funds or financing provided by, through or in conjunction with FHLMC or FNMA or FHA or, if such amendment is necessary, in Declarant’s opinion, for the efficient functioning of the Association, the Property, or the Plat. 16.2 Duration. Declarant’s rights under this Section shall exist only until the Transition Date. 17. MISCELLANEOUS. 17.1 Notice. All notices given under the provisions of this Declaration shall be in the form of a record, as provided in RCW 64.90.515. Notices may be delivered in a tangible medium or by electronic transmission provided the requirements of RCW 64.90.515 are satisfied. Notices delivered by tangible medium are effective on the date of hand delivery, three (3) days after deposit with the United States Postal Service or when sent by facsimile transmission. Notices delivered by electronic transmission are effective on the date of transmission to an address, location or system designated by the recipient for receipt of such notices or the date the notice is posted to an electronic network and a separate record of the posting has been sent to the recipient with instructions on how to access the posting. 17.2 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. 17.3 Assignment by Declarant. Declarant reserves the right to assign or delegate all or any of its rights, duties, and obligations created under this Declaration. XXX CCRS 12 [ADD ADDITIONAL PROVISIONS IF NECESSARY: • Number of units in development & maximum number of units allowed (if Declarant is reserving the right to add more units through phasing, as required under RCW 64.90.225(c); • Description of areas within the open space/common tract that may be reserved for use by specific lot owners, if any, as required under RCW 64.90.225 (1)(e) & (f); • Describe any special development rights reserved to the declarant and a time period within which those rights must be exercised, as required under RCW 64.90.225 (1)(g) & (h); DATED as of the date first written above. DECLARANT: BLUE FERN MANAGEMENT, LLC ___________________________________ By: Its: STATE OF WASHINGTON ) ) ss. COUNTY OF ____________ ) This record was acknowledged before me on ____________________, 20___ by ________________________________________________, in their capacity as ___________________________ of BLUE FERN MANAGEMENT, LLC. (Stamp) (Signature of Notary Public) (Title of Office) My Commission Expires: (Date) XXX CCRS EXHIBIT A TO DECLARATION OF COVENANTS, EASEMENTS AND RESTRICTIONS Legal Description of the Property XXX CCRS EXHIBIT B TO DECLARATION OF COVENANTS, EASEMENTS AND RESTRICTIONS Site Plan XXX CCRS EXHIBIT C* TO DECLARATION OF COVENANTS, EASEMENTS AND RESTRICTIONS Unit Description/Allocated Interests And Voting *Include if required under RCS 64.90.225(j) – See cross reference in Section 8.1 of this document.