CCRs - Shelm MeadowsAFTER RECORDING RETURN TO:
LGI Homes – Washington, LLC
c/o LGI Homes, Inc.
Attn: Jack Lipar
1450 Lake Robbins Drive, Suite 430
The Woodlands, TX 77380
Document Title: Declaration of Covenants, Conditions and Restrictions
for Shelm Meadows
Grantor: LGI Homes – Washington, LLC
Grantee: Public
Abbreviated Legal Description: Ptn Lot 5 and All of Lot 4, Blk 7, McKenna Irrigated
Tracts, Vol. 9, Pg. 43-44
Full Legal Description: See EXHIBIT A attached.
Assessor’s Tax Parcel Nos.: 6430-07-00400; 6430-07-00501
Related Documents: __________________ (Map)
NOTICE TO RECORDER
AS REQUIRED BY RCW CHAPTER 64.90, AT THE TIME OF RECORDING OF THIS
DECLARATION PLEASE INSERT DATA FOR THE PLAT MAP RECORDED IN
CONNECTION HEREWITH. The Plat Map of the Community referred to herein is filed
with the Recorder of Thurston County, Washington simultaneously with the recording of
this Declaration under Thurston County Recorder’s No. ______________________.
This community is subject to the Washington Uniform Common Interest Ownership Act, RCW
Chapter 64.90.
DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
FOR SHELM MEADOWS
TABLE OF CONTENTS
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DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR
SHELM MEADOWS ............................................................................................................1
ARTICLE 1 INTERPRETATION ...............................................................................................2
1.1 Liberal Construction ..................................................................................................2
1.2 Consistent with the Act ..............................................................................................2
1.3 Covenant Running with Land ....................................................................................2
1.4 Declarant is Original Owner ......................................................................................2
1.5 Plat Community .........................................................................................................2
1.6 Captions and Exhibits; Form of Words .....................................................................2
1.7 Percentage of Owners ................................................................................................2
1.8 Percentage of Mortgagees ..........................................................................................2
1.9 Inflationary Increase in Dollar Limits........................................................................2
1.10 Priority of Documents ................................................................................................3
1.11 Definitions..................................................................................................................3
ARTICLE 2 DESCRIPTION OF LAND; DEVELOPMENT IN PHASES ................................7
2.1 Initial Development ...................................................................................................7
2.2 Right to Annex Additional Property or to Withdraw Property ..................................7
2.3 Withdrawal of Property..............................................................................................8
2.4 Liens ...........................................................................................................................8
2.5 Annexation with Approval of Membership ...............................................................8
ARTICLE 3 DESCRIPTION OF UNITS; ALLOCATED INTERESTS....................................8
3.1 Unit Description and Ownership ...............................................................................8
3.2 Monuments as Boundaries .........................................................................................9
3.3 Allocated Interests .....................................................................................................9
3.3.1 Interest in Common Elements .....................................................................9
3.3.2 Common Expense Liability .........................................................................9
3.3.3 Voting ..........................................................................................................9
3.3.4 Subsequent Phase Units ...............................................................................9
3.4 Restrictions on Further Subdivision...........................................................................9
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ARTICLE 4 COMMON ELEMENTS ........................................................................................9
4.1 Ownership of Common Elements ..............................................................................9
4.2 Use .............................................................................................................................9
4.3 Maintenance of Common Elements ...........................................................................10
4.4 Alterations to Common Elements ..............................................................................10
4.5 Funding ......................................................................................................................10
4.6 Damage or Destruction of Common Elements and Limited Common Elements ......10
4.7 Power of Association to Sell, Convey or Grant Security Interest in Common
Elements .....................................................................................................................10
ARTICLE 5 LIMITED COMMON ELEMENTS .......................................................................11
5.1 Description .................................................................................................................11
5.2 Use .............................................................................................................................11
5.3 Maintenance of the Limited Common Elements .......................................................11
5.3.1 Decisions by Board ......................................................................................11
5.3.2 Performance of Work ..................................................................................11
5.3.3 Owner Pays Costs ........................................................................................11
5.3.4 Multiple Owners ..........................................................................................11
5.4 Reallocation ...............................................................................................................11
ARTICLE 6 OWNERSHIP AND EASEMENTS .......................................................................12
6.1 Non-Severability ........................................................................................................12
6.2 Ownership of Units ....................................................................................................12
6.3 Easements ..................................................................................................................12
6.3.1 Encroachments ............................................................................................12
6.3.2 Easements on Map .......................................................................................13
6.3.3 Easements for Common Elements ...............................................................13
6.3.4 Easements Reserved by Declarant ...............................................................13
6.3.5 Utility Easements Granted by the Declarant ...............................................13
6.3.6 Association’s Easements .............................................................................14
6.3.7 Easement to Governmental Entities ............................................................14
6.3.8 Perimeter Easement Benefitting Association ..............................................14
6.4 Declarant’s Right to Dedicate Common Elements and Grant Easements;
Board’s Authority After Title Transferred to Association .........................................14
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ARTICLE 7 USE, MAINTENANCE AND OCCUPANCY; RULES OF CONDUCT .............14
7.1 Use .............................................................................................................................14
7.1.1 Residential Use ............................................................................................14
7.1.2 Timesharing Prohibited ...............................................................................15
7.2 Use or Alteration of Common Elements and Limited Common Elements ...............15
7.3 Maintenance of Units and Common Elements and Limited Common Elements ......15
7.4 Alteration of Units .....................................................................................................16
7.4.1 Non-Structural Alterations ..........................................................................16
7.4.2 Common Elements and Limited Common Elements ..................................16
7.5 Common Drives and Walks .......................................................................................16
7.6 Rental of Units ...........................................................................................................16
7.6.1 Written Rental Agreements Required .........................................................16
7.6.2 Lessee Must Be Given Documents ..............................................................17
7.6.3 Notice to Manager .......................................................................................17
7.6.4 Owner Default .............................................................................................17
7.7 Garages and Parking ..................................................................................................17
7.8 Vehicles in Disrepair..................................................................................................18
7.9 Fences and Hedges .....................................................................................................18
7.10 Animals ......................................................................................................................18
7.11 Signs ...........................................................................................................................19
7.12 Rubbish and Trash .....................................................................................................19
7.13 Service Facilities ........................................................................................................19
7.14 Antennas and Satellite Dishes ....................................................................................19
7.15 Exterior Lighting or Noise-making Devices ..............................................................20
7.16 Grades, Slopes and Drainage .....................................................................................20
7.17 Effect on Insurance ....................................................................................................20
7.18 Quiet Enjoyment; Improper, Offensive or Unlawful Use; Nuisance .........................20
7.19 Hazardous Substances ................................................................................................20
7.20 Accessory Buildings ..................................................................................................21
7.21 Temporary Structures.................................................................................................21
7.22 Damage or Destruction to Unit ..................................................................................21
7.23 Right of Maintenance and Entry by Association .......................................................21
7.24 Association Rules and Regulations ............................................................................22
7.25 Ordinances and Regulations ......................................................................................22
7.26 Declarant Exemptions ................................................................................................22
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ARTICLE 8 ARCHITECTURAL CONTROL ...........................................................................22
8.1 Appointment of Architectural Control Committee ....................................................22
8.2 Architectural Review .................................................................................................23
8.3 General Provisions .....................................................................................................23
8.4 Majority Action ..........................................................................................................23
8.5 Duties and Architectural Standards ...........................................................................23
8.6 Additional Requirements ...........................................................................................24
8.7 Submission of Plans to the ACC ................................................................................24
8.8 ACC Discretion ..........................................................................................................24
8.9 Non-Liability..............................................................................................................24
8.10 Sales Facilities of Declarant.......................................................................................24
8.11 Appeals ......................................................................................................................24
8.12 ACC Decision ............................................................................................................25
8.13 Nonwaiver ..................................................................................................................25
8.14 Effective Period of Consent .......................................................................................25
8.15 Determination of Compliance ....................................................................................25
8.16 Noncompliance ..........................................................................................................25
8.17 Liability ......................................................................................................................26
8.18 Estoppel Certificate ....................................................................................................26
8.19 Fees ............................................................................................................................26
8.20 Declarant Exempt From ACC ....................................................................................26
ARTICLE 9 DECLARANT’S SPECIAL RIGHTS ....................................................................26
9.1 General .......................................................................................................................26
9.2 Declarant Control Period ...........................................................................................27
9.3 Marketing Rights .......................................................................................................27
9.4 Declarant Easements ..................................................................................................27
9.5 Additional Improvements ..........................................................................................27
9.6 Control of the ACC ....................................................................................................27
9.7 Special Declarant Rights ............................................................................................28
9.8 Transfer ......................................................................................................................28
ARTICLE 10 OWNERS’ ASSOCIATION .................................................................................28
10.1 Establishment .............................................................................................................28
10.2 Form of Association ...................................................................................................28
10.3 Bylaws........................................................................................................................28
10.4 Members ....................................................................................................................29
10.5 Voting Rights .............................................................................................................29
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10.5.1 Proxy ............................................................................................................29
10.5.2 No Fractional Voting ...................................................................................29
10.6 Procedure ...................................................................................................................29
10.7 Powers of the Association ..........................................................................................29
10.8 Books and Records, Financial Statements .................................................................32
10.8.1 Audit of Books and Records ........................................................................33
10.8.2 Inspection of Governing Documents, Books and Records ..........................33
ARTICLE 11 DECLARANT CONTROL...................................................................................33
11.1 Interim Board and Officers ........................................................................................33
11.2 Termination Date .......................................................................................................34
11.3 Transition Meeting .....................................................................................................34
11.4 Declarant’s Transfer of Association Control .............................................................34
11.5 Audit of Records Upon Transfer................................................................................34
11.6 Termination of Contracts and Leases Made by the Declarant ...................................34
ARTICLE 12 THE BOARD ........................................................................................................35
12.1 Selection of the Board and Officers ...........................................................................35
12.2 Powers of the Board ...................................................................................................35
12.3 Manager .....................................................................................................................35
12.4 Limitations on Board Authority .................................................................................35
12.5 Right to Notice and Opportunity to Be Heard ...........................................................35
ARTICLE 13 BUDGET AND ASSESSMENTS ........................................................................36
13.1 Purpose of Assessments; Expenses ............................................................................36
13.2 Fiscal Year .................................................................................................................36
13.3 Budgeting ...................................................................................................................36
13.4 Ratification of Budget ................................................................................................36
13.4.1 Supplemental Budget ...................................................................................37
13.4.2 Allocation of Assessments ..........................................................................37
13.4.3 Nonwaiver of Assessments ..........................................................................37
13.5 Notice of Assessments ...............................................................................................37
13.6 Covenants to Pay........................................................................................................37
13.7 Basis and Payment of Assessments ...........................................................................37
13.7.1 Funds Held in Trust .....................................................................................38
13.7.2 Proceeds Belong to Association ..................................................................38
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13.7.3 Offsets ..........................................................................................................38
13.8 Commencement of Assessments................................................................................38
13.9 Initial Working Capital Contribution .........................................................................38
13.10 Special Assessments ..................................................................................................38
13.10.1 Correct Deficit .............................................................................................39
13.10.2 Special Obligations of an Owner .................................................................39
13.10.3 Repairs .........................................................................................................39
13.10.4 Capital Improvements .................................................................................39
13.11 Specially Allocated Expenses ....................................................................................39
13.11.1 General ........................................................................................................39
13.11.2 Sewer Capacity Charge, LIDs, etc. .............................................................39
13.11.3 Utilities ........................................................................................................39
13.11.4 Insurance ......................................................................................................39
13.11.5 Allocation of Costs and Liability Not Covered by Insurance .....................39
13.12 Recalculation of Assessments ....................................................................................40
13.13 Reconciliation of Assessments to Actual Expenses...................................................40
13.14 Accounts ....................................................................................................................40
13.15 Reserve Study ............................................................................................................40
13.16 Reserve Account ........................................................................................................41
13.16.1 Calculation of Reserve Assessment .............................................................41
13.16.2 Reserve Account Restrictions ......................................................................41
13.16.3 Loan from Reserve Account ........................................................................42
13.16.4 Investment of Reserve Account ...................................................................42
13.16.5 Refunds of Assessments ..............................................................................42
13.17 Certificate of Assessments .........................................................................................42
ARTICLE 14 LIEN AND COLLECTION OF ASSESSMENTS ...............................................43
14.1 Priority of Association Lien .......................................................................................43
14.1.1 Personal Obligation .....................................................................................43
14.1.2 Interest; Fines; Late Fees; Penalties ............................................................44
14.1.3 Acceleration of Assessments .......................................................................44
14.1.4 Association’s Right to Rents; Receiver .......................................................44
14.2 Waiver of Homestead ................................................................................................44
14.3 Lien May Be Foreclosed; Judicial Foreclosure .........................................................44
14.4 Nonjudicial Foreclosure .............................................................................................45
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14.5 Receiver During Foreclosure .....................................................................................45
14.6 Recovery of Attorneys’ Fees and Costs .....................................................................45
14.7 Security Deposit .........................................................................................................45
14.8 Remedies Cumulative ................................................................................................46
ARTICLE 15 ENFORCEMENT OF DECLARATION, BYLAWS, AND RULES AND
REGULATIONS....................................................................................................................46
15.1 Rights of Action .........................................................................................................46
15.2 Failure of Board to Insist on Strict Performance No Waiver .....................................46
15.3 Board Enforcement ....................................................................................................46
15.4 Recovery of Attorneys’ Fees and Costs .....................................................................46
ARTICLE 16 INSURANCE ........................................................................................................46
16.1 General Requirements ................................................................................................46
16.2 Property Insurance .....................................................................................................47
16.2.1 Common Elements ......................................................................................47
16.2.2 Certificates and Memoranda of Insurance ...................................................47
16.3 Commercial General Liability Insurance ...................................................................47
16.4 Fidelity Insurance.......................................................................................................48
16.5 Additional Policy Provisions .....................................................................................48
16.6 Insurance Trustee; Power of Attorney .......................................................................49
16.7 Use of Insurance Proceeds .........................................................................................49
16.8 Modification of Insurance Requirements...................................................................49
16.9 Owner Insurance ........................................................................................................49
ARTICLE 17 DAMAGE AND REPAIR OF PROPERTY .........................................................50
17.1 Initial Board Determination .......................................................................................50
17.2 Notice of Damage ......................................................................................................50
17.3 Definitions: Damage, Substantial Damage, Repair, Emergency Work .....................51
17.4 Execution of Repairs ..................................................................................................51
17.5 Damage Not Substantial ............................................................................................51
17.6 Substantial Damage ...................................................................................................52
17.7 Effect of Decision Not to Repair ...............................................................................53
ARTICLE 18 CONDEMNATION ..............................................................................................53
18.1 Consequences of Condemnation ................................................................................53
18.2 Power of Attorney ......................................................................................................53
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18.3 Proceeds and Allocation of the Condemnation Award. .............................................53
18.3.1 Condemnation of a Unit ..............................................................................53
18.3.2 Condemnation of Part of a Unit ...................................................................54
18.3.3 Condemnation of Common Elements or Limited Common Elements ........54
18.3.4 Severance Damages .....................................................................................54
18.3.5 Consequential Damages ..............................................................................54
18.3.6 Agreed Allocation .......................................................................................54
18.4 Partial versus Complete Taking .................................................................................55
18.5 Reconstruction and Repair .........................................................................................55
ARTICLE 19 MORTGAGEE PROTECTION ............................................................................55
19.1 Priority of Mortgages .................................................................................................55
19.2 Abandonment of Common Interest Community........................................................55
19.3 Material Amendments to Declaration and Bylaws ....................................................55
19.4 Implied Approval .......................................................................................................56
19.5 Effect of Declaration Amendments ...........................................................................56
19.6 Written Notice ............................................................................................................56
19.6.1 Notice of Cancellation and Material Change ..............................................56
19.6.2 Notice of Taking ..........................................................................................56
19.6.3 Notice of Owner’s Default ..........................................................................56
19.6.4 Notice of Meetings ......................................................................................56
19.7 Insurance Policy Terms..............................................................................................56
19.7.1 Reference to All Holders of Mortgages .......................................................56
19.7.2 Mortgagee’s Interest not to be Invalidated ..................................................57
19.7.3 Waiver of Certain Provisions ......................................................................57
19.8 Inspection of Books; Audited Financial Statements ..................................................57
ARTICLE 20 AMENDMENT OF DECLARATION, MAP, ARTICLES, OR BYLAWS ........57
20.1 Procedures ..................................................................................................................57
20.2 Percentages of Consent Required ..............................................................................58
20.3 Limitations on Amendments ......................................................................................59
20.4 Amendments to Conform to Construction .................................................................59
20.5 Unilateral Amendment by Declarant .........................................................................59
ARTICLE 21 TERMINATION OF PROJECT ...........................................................................59
21.1 Action Required .........................................................................................................59
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21.2 Act Governs ...............................................................................................................59
ARTICLE 22 DISPUTE RESOLUTION ....................................................................................60
22.1 Dispute Resolution .....................................................................................................60
22.2 Mediation ...................................................................................................................60
22.3 Binding Arbitration ....................................................................................................60
22.4 WAIVER OF JURY TRIAL ......................................................................................61
22.5 Exception to Arbitration ............................................................................................61
ARTICLE 23 GENERAL PROVISIONS ...................................................................................61
23.1 Declarant Liability .....................................................................................................61
23.2 Indemnification of Directors, Officers, Employees and Agents ................................61
23.3 No Personal Liability .................................................................................................62
23.4 Limitation of Liability for Utility Failure, etc ...........................................................62
23.5 Enforcement; Attorneys’ Fees ...................................................................................62
23.6 Assignment by Declarant ...........................................................................................63
23.7 Conveyance by Owners; Notice Required .................................................................63
23.8 Notices .......................................................................................................................63
23.9 Severability ................................................................................................................64
23.10 Duration. ....................................................................................................................64
23.11 Reference to Map .......................................................................................................64
23.12 Effective Date ............................................................................................................64
23.13 Release of Right of Control .......................................................................................64
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EXHIBIT A – Legal Description of the Project
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DECLARATION OF
COVENANTS, CONDITIONS, AND RESTRICTIONS
FOR SHELM MEADOWS
THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR
SHELM MEADOWS (“Declaration”) is made this ____ day of December, 2024, by LGI Homes
– Washington, LLC, a Washington limited liability company (“Declarant”).
Recitals
A. Declarant owns certain real property and improvements commonly known as
Shelm Meadows located in Thurston County, Washington, and legally described in attached
Exhibit A (the “Project”).
B. Declarant intends to establish the Project as a common interest community named
“SHELM MEADOWS,” which shall be a plat community for all purposes of the Act (defined
below). Shelm Meadows will be governed by the Shelm Meadows Homeowners Association, a
Washington non-profit corporation (the “Association”).
C. The Project shall consist of ninety (90) detached Units and the Common Elements
and Limited Common Elements described and defined herein.
D. Declarant desires to impose these mutually beneficial covenants, conditions,
restrictions, easements, assessments, and liens on the Project, under a comprehensive general plan
of improvement and development for the benefit of all Units and Common Elements in Shelm
Meadows.
* * * * *
NOW THEREFORE, Declarant declares that the Project shall be held, transferred, sold,
conveyed, encumbered, mortgaged, leased, rented, used, improved and occupied subject to the
Washington Uniform Common Interest Ownership Act as may be amended from time to time
(RCW 64.90 et seq.) and subject to the following covenants, conditions, restrictions, reservations,
grants of easement, rights, rights-of-way, liens, charges, assessments, and equitable servitudes,
which shall run with the land, which shall be binding upon all parties having or acquiring any right,
title or interest in the Project or any part thereof, and which shall inure to the benefit of the
Association and of each Owner.
Any conveyance, transfer, sale, assignment, lease or sublease of a Unit in the Project, is
deemed to incorporate by reference all provisions of this Declaration. The provisions of this
Declaration shall be enforceable by Declarant, any Owner, the Association, and the first Mortgagee
of any Unit.
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ARTICLE 1
INTERPRETATION
1.1 Liberal Construction. The provisions of this Declaration shall be liberally
construed to effectuate its purpose of creating a uniform plan for the operation and maintenance
of the Project. The creation of this common interest community shall not be impaired, and title to
the Units, Common Elements, and Limited Common Elements shall not be rendered unmarketable
or otherwise affected, by reason of an insignificant failure of this Declaration or the Map or any
amendments to either of them to comply with the Act.
1.2 Consistent with the Act. This Declaration is intended to be construed in accordance
with the Act, unless expressly stated otherwise or the context clearly requires otherwise.
1.3 Covenant Running with Land. It is intended that this Declaration shall be operative
as a set of covenants running with the land, or equitable servitudes, as applicable, binding on
Declarant, its successors and assigns, all subsequent Owners of the Project or any Units together
with their grantees, successors, heirs, executors, administrators, devisees or assigns.
1.4 Declarant is Original Owner. Declarant is the original Owner of all Units and the
Project and will continue to be deemed the Owner thereof except as conveyances or documents
changing such ownership regarding specifically described Units or portions of the Project are filed
of record.
1.5 Plat Community. The Project shall be a plat community. This Declaration shall not
be construed to create a condominium.
1.6 Captions and Exhibits; Form of Words. Captions given to the various articles and
sections herein are for convenience only and are not intended to modify or affect the meaning of
any of the substantive provisions hereof. Any exhibits referred to herein and attached hereto shall
be deemed incorporated herein by reference as though fully set forth where such reference is made.
The singular form of words shall include the plural and the plural shall include the singular.
Masculine, feminine, and gender-neutral pronouns shall be used interchangeably.
1.7 Percentage of Owners. For purposes of determining the percentage of Owners
approving a proposed decision or course of action, an Owner shall be deemed a separate Owner
for each Unit owned by such Owner.
1.8 Percentage of Mortgagees. For purposes of determining the percentage of first
Mortgagees approving a proposed decision or course of action, a Mortgagee shall be deemed a
separate Mortgagee for each Unit on which it holds a Mortgage that constitutes a first lien on said
Unit.
1.9 Inflationary Increase in Dollar Limits. Any dollar amounts specified in this
Declaration in connection with any proposed action or decision of the Board or Association shall
be increased proportionately by the increase in the consumer price index for the city of Seattle,
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Washington for all Urban Consumers (“Index”), prepared by the United States Department of
Labor over the base index of January 1 of the calendar year following the year in which this
Declaration is recorded, to adjust for any deflation in the value of the dollar. In the event the Index
is discontinued, the Board shall select a comparable Index for this purpose.
1.10 Priority of Documents. In the event of any conflict among the Act and the
documents relating to the Project, the following shall be the order of priority in resolving the
conflict with the earlier listed controlling over the later listed: (1) the Act; (2) this Declaration;
(3) the Articles; (4) the Bylaws; and (5) any Rules and Regulations. However, no conflict is
intended and the documents shall be interpreted whenever possible to give meaning to each
provision in a manner which avoids a conflict.
1.11 Definitions.
1.11.1 “Act” means the Washington Uniform Common Interest Ownership
Act (RCW Chapter 64.90), as amended from time to time.
1.11.2 “Additional Property” means any real property adjacent to or near
Shelm Meadows that is owned or controlled by Declarant and which the Declarant elects to
annex into the Project pursuant to the annexation provisions of this Declaration.
1.11.3 “Allocated Interest” means the undivided interests in the Common
Elements and the Common Expense Liability allocated to each Unit, more particularly
described in Section 3.3.
1.11.4 “Architectural Control Committee” or “ACC” means that committee
constituted and acting pursuant to Article 8 of this Declaration.
1.11.5 “Architectural Standards” has the meaning given to such term in
Section 8.5.
1.11.6 “Articles” means the Articles of Incorporation for the Association, as
filed with the Washington Secretary of State, including all amendments thereto.
1.11.7 “Assessment” or “assessment” means all sums chargeable to an
Owner by the Association in accordance with this Declaration and the Act.
1.11.8 “Association” means the Shelm Meadows Homeowners Association.
1.11.9 “Board” means the Board of Directors of the Association.
1.11.10 “Books and Records of the Association” means the books and records
that the Association is required to maintain pursuant to RCW 64.90.495, as may be amended
from time to time.
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1.11.11 “Bylaws” means the Bylaws of the Association, including all
amendments thereto.
1.11.12 “Common Elements” means all real property (including the
improvements thereon) located within the Project that is owned or leased by the Association
or in common by the Owners and intended to be devoted for the common use and enjoyment
of the Owners, including the following (unless dedicated to a governmental entity): all Tracts,
Project entry sign(s) and landscaping, planter islands on roads, sidewalks, curbs, pathways,
landscaping, streetlights, monuments, signs, lawns, mailboxes or mail kiosks serving more
than one Unit, open spaces, storm water detention vault and treatment facilities, private
drainage facilities, common utility systems, and any other real property or improvements that
are owned and maintained by the Association by the terms of the Map, and any improvements,
facilities, or systems designated as Common Elements on the Map. The Declarant may add or
subtract from the Common Elements during the Declarant Control Period by amendment to
this Declaration.
1.11.13 “Common Expense” means expenditures made by or financial
liabilities incurred by the Association to exercise any of the powers provided for in this
Declaration, the Map, or the Act.
1.11.14 “Common Expense Liability” means the liability for Common
Expenses allocated to each Unit, as set forth in Section 3.3.
1.11.15 “Declarant” means LGI Homes – Washington, LLC, a Washington
limited liability company.
1.11.16 “Declarant Control Period” means the period of time from the date of
recording of this Declaration until the Termination Date. A partial delegation of authority by
Declarant of any of its management duties described in this Declaration shall not terminate the
Declarant Control Period.
1.11.17 “Declaration” means the covenants, conditions, restrictions, and all
other provisions set forth in this Declaration, as it may be amended from time to time.
1.11.18 “Development Rights” means the rights reserved by the Declarant
specified in Article 9 and elsewhere in this Declaration.
1.11.19 “Eligible Mortgagee” means a Mortgagee that has filed with the
secretary of the Association a written request that it be given copies of notices of any action
by the Association that requires the consent of Mortgagees.
1.11.20 “Federal Agency” means one or more of the following agencies and
the following letter designation(s) for such agency(ies) shall mean and refer to, respectively,
the agency specified within the parentheses following such letter designation and any successor
to such agencies: FHA (Federal Housing Administration), FHLMC (Federal Home Loan
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Mortgage Corporation), FNMA (Federal National Mortgage Association), GNMA
(Government National Mortgage Association), and VA (United States Department of
Veterans’ Affairs).
1.11.21 “Governing Documents” means the Declaration, Articles, Bylaws and
Rules and Regulations of the Association.
1.11.22 “Interim Board” has the meaning given to such term in Section 11.1.
1.11.23 “Limited Common Elements” means a portion of the Common
Elements allocated in this Declaration, or by operation of law, for the exclusive use of one or
more, but fewer than all, of the Units.
1.11.24 “Lot” means each lot depicted on the Map and any lots subsequently
annexed to Shelm Meadows by any supplemental declaration and/or plat.
1.11.25 “Manager” means the person retained by the Board, if any, to perform
such management and administrative functions and duties with respect to Shelm Meadows as
are delegated to such person and as are provided in a written agreement between such person
and the Association.
1.11.26 “Map” or “Plat Map” means the Plat of Shelm Meadows, recorded
simultaneously with this Declaration in the real property records of Thurston County,
Washington, including all amendments, corrections, and addenda thereto.
1.11.27 “Members” means the members of the Association, each of whom
shall be an Owner of a Unit.
1.11.28 “Mortgage” means a recorded mortgage or deed of trust that creates a
lien against a Unit and shall also mean a real estate contract for the sale of a Unit.
1.11.29 “Mortgagee” means the beneficial holder, or the designee of the
beneficial holder, of an encumbrance on a Unit created by a Mortgage and shall also mean the
vendor, or the designee of a vendor, of a real estate contract for the sale of a Unit.
1.11.30 “Notice and Opportunity to be Heard” means the procedure described
in Section 12.5.
1.11.31 “Occupant” means the occupant of a Unit, whether such person is an
Owner, a lessee or any other person authorized by the Owner to occupy the Unit.
1.11.32 “Operating Account” means a bank account or accounts established
by the Board at a federally insured financial institution to hold funds for the routine
maintenance, repair, and replacement of the Common Elements and other portions of the
Project that the Association is required to maintain pursuant to this Declaration.
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1.11.33 “Owner” means the record owner, whether one or more persons or
entities, of the fee simple title to any Unit or a purchaser in possession of a Unit under a real
estate contract.
1.11.34 “Person” or “person” shall include natural persons, partnerships,
limited partnerships, limited liability companies, corporations, associations, trusts, estates, and
personal representatives, or other legal entities.
1.11.35 “Project” shall have the meaning attributed to such term in the Recitals
of this Declaration, together with such Additional Property as may, from time to time, be
annexed to Shelm Meadows.
1.11.36 “Quorum” means the minimum number of Owners required to
constitute a quorum under the Act for purposes of meetings and other action taken by the
Association.
1.11.37 “Reserve Account(s)” means a bank account established by the Board
to hold funds at a federally insured financial institution for major repair, replacement or
maintenance of the Common Elements and in accordance with the Act and other portions of
the Project the Association is required to maintain pursuant to this Declaration.
1.11.38 “Reserve Assessment” has the meaning set forth in Section 13.16.1.
Reserve Assessments are Assessments, and all references herein to assessments shall include
Reserve Assessments, as applicable.
1.11.39 “Reserve Study” has the meaning given to such term in Section 13.15.
1.11.40 “Rules and Regulations” means the documents containing rules and
regulations and policies adopted by the Board or the Architectural Control Committee, as may
be from time to time amended.
1.11.41 “Specially Allocated Expenses” means expenditures made by the
Association which are allocated among the Owners pursuant to Section 13.11 on a basis other
than an Owner’s Allocated Interest.
1.11.42 “Special Assessment” means those Common Expenses which cannot
reasonably be calculated and paid on a monthly basis for which the Board may levy a Special
Assessment, as set forth in Section 13.10. A Special Assessment is an Assessment, and all
references to “Assessments” or “assessments” in this Declaration shall include Special
Assessments to the extent applicable.
1.11.43 “Special Declarant Rights” has the meaning given to such term in
Article 9.
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1.11.44 “Subsequent Phase” means the creation by the Declarant of additional
Units and associated Limited Common Elements on all or a portion of the Additional Property
pursuant to Article 2.
1.11.45 “Termination Date” has the meaning given to such term in Section
11.2.
1.11.46 “Tract” or “Tracts” means all of the Tracts shown on the Map. Tracts
A and B are designated as open space tracts. Tract C is designated as storm drainage tract and
is subject to an inspection easement for the benefit of the City of Yelm. Tracts D and F are
designated as public pedestrian access tracts and are subject to access easements over their
entireties benefiting the public, and are also subject to an inspection easement for the benefit
of the City of Yelm. All Tracts are to be owned and maintained by the Association (unless
dedicated to the public or a governmental entity by the terms of the Map).
1.11.47 “Transition Meeting” means the meeting called by Declarant pursuant
to Section 11.3, at which Declarant will turn over administrative responsibility for Shelm
Meadows to the Association.
1.11.48 “Unit” or “Units” means a Lot together with any improvements
constructed thereon.
ARTICLE 2
DESCRIPTION OF LAND; DEVELOPMENT IN PHASES
2.1 Initial Development. The development of Shelm Meadows consists of the real
property described in Exhibit A, which will be held, transferred, sold, conveyed, and occupied
subject to this Declaration. Declarant does not intend to build any Common Elements
improvements in Shelm Meadows other than those shown on the Map and the sidewalks,
pathways, open spaces, facilities, systems, auto courts, and other improvements shown on the Map.
2.2 Right to Annex Additional Property or to Withdraw Property. Declarant may, from
time to time during the Declarant Control Period, in its sole discretion, annex Additional Property
into Shelm Meadows. The annexation of Additional Property shall be accomplished as follows:
2.2.1 The Declarant shall execute and record an amendment to this
Declaration and the Map, which shall, among other things, describe the real property to be
annexed, establish any additional limitations, uses, restrictions, covenants and conditions that
are intended to be applicable to such Additional Property, and declare that such Additional
Property is held and shall be held, conveyed, hypothecated, encumbered, used, occupied, and
improved subject to this Declaration.
2.2.2 The Additional Property included in any such annexation shall thereby
become a part of the Project and subject to this Declaration, and the Declarant and the
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Association shall have and shall accept and exercise administration of this Declaration with
respect to the Additional Property.
2.2.3 There is no limitation on the number of Units that Declarant may
create or annex to the Project, except as may be established by applicable law.
2.2.4 Upon annexation, additional Units so annexed shall be entitled to
voting rights as set forth in Section 10.5.
2.2.5 The formula to be used for reallocating the Common Expenses if
additional Units are annexed and the manner of reapportioning the Common Expenses if
additional Units are annexed during a fiscal year is set forth in Section 3.3.
2.3 Withdrawal of Property. Property may be withdrawn from Shelm Meadows only
by duly adopted amendment to this Declaration, except that Declarant may withdraw all or a
portion of the Project or any Additional Property that has been annexed to Shelm Meadows at any
time prior to the sale of the first Unit. Such withdrawal shall be by a declaration executed by
Declarant and recorded in the records of Thurston County, Washington. If a portion of the Project
is withdrawn, all voting rights otherwise allocated to Units being withdrawn shall be eliminated,
and the Common Expense Liability for all remaining Units shall be reallocated as provided in
Section 3.3.
2.4 Liens. Any liens that arise in connection with the Declarant’s ownership of or
construction of improvements on the Additional Property shall attach only to the Declarant’s
interest in that property and shall not adversely affect the rights of other Unit Owners or the priority
of Mortgages on the Units. All taxes and costs relating to improvements on the Additional Property
before the Units therein have been created shall be paid or allocated to the Declarant.
2.5 Annexation with Approval of Membership. In addition to the rights of Declarant
pursuant to Section 2.2, the Association may subject any real property to the provisions of this
Declaration with the consent of the owner of such property, the affirmative vote of holders of at
least ninety percent (90%) of the votes allocated to the Unit Owners, excluding Units owned by
the Declarant, and the written consent of the Declarant, if any. Such annexation shall be
accomplished by filing a supplemental declaration in the records of Thurston County, Washington
describing the property to be annexed and specifically subjecting it to the terms of this Declaration.
Any such supplemental declaration shall be signed by the President and Secretary of the
Association and by the owner of the annexed property. Any such annexation shall be effective
upon the filing for record of such supplemental declaration, unless otherwise provided therein.
ARTICLE 3
DESCRIPTION OF UNITS; ALLOCATED INTERESTS
3.1 Unit Description and Ownership. The location and boundaries of the Units are
shown on the Map. Units will be owned in fee.
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3.2 Monuments as Boundaries. The physical boundaries of a Unit constructed in
substantial accordance with the Map become its boundaries rather than the metes and bounds
expressed in the Map, regardless of settling or lateral movement of the buildings or minor variances
between boundaries shown on the Map and those of the buildings. This Section does not relieve a
Declarant or any other person of liability for failure to adhere to the Map.
3.3 Allocated Interests. The Allocated Interests of each Unit in (a) the Common
Elements, (b) Common Expenses of the Association, and (c) votes in the Association is determined
as follows:
3.3.1 Interest in Common Elements. The interest in the Common Elements
of each Unit is equal to a fraction, the numerator of which is one (1), and the denominator of
which is the total number of Units in the Project. Each Unit shall have an equal interest in the
Common Elements.
3.3.2 Common Expense Liability. The Common Expense Liability is equal
to a fraction, the numerator of which is one (1), and the denominator of which is the total
number of Units in the Project. Except for any Specially Allocated Expenses, the Common
Expense Liability is allocated equally among the Units. Specially Allocated Expenses are
allocated according to Section 13.11.
3.3.3 Voting. Votes shall be allocated equally among the Units. There shall
be one vote per Unit.
3.3.4 Subsequent Phase Units. When Units in a Subsequent Phase are
created, the Allocated Interests shall be recalculated using the foregoing formulas.
3.4 Restrictions on Further Subdivision. No Unit or portion of a Unit shall be
subdivided or combined either by agreement or legal proceedings; provided the foregoing shall
not prohibit deeds of correction, deeds to resolve boundary disputes, and similar corrective
instruments.
ARTICLE 4
COMMON ELEMENTS
4.1 Ownership of Common Elements. Subject to Section 6.4, title to any Common
Elements shall be vested in the Association.
4.2 Use. Each Owner shall have the right to use the Common Elements in common
with all other Owners and a right of access from the Owner’s Unit across the Common Elements
to the public streets. The right to use the Common Elements extends not only to each Owner, but
also to his or her agents, servants, tenants, family members, invitees, and licensees. The right to
use the Common Elements shall be governed by the provisions of the Governing Documents, the
Act, and the Map. There shall be no obstruction of any part of the Common Elements. Nothing
shall be stored or kept in the Common Elements without the prior written consent of the Board.
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No Owner shall place or cause to be placed on any portion of the Common Elements any trash,
structure, equipment, improvement, furniture, package or object of any kind. Common Elements
shall be used for no purpose other than what is customary for such areas. No alterations or additions
to the Common Elements shall be permitted without the prior written consent of the Board.
4.3 Maintenance of Common Elements. The Association shall be responsible for
maintenance, repair, replacement, and upkeep of the Common Elements, including fencing located
thereon. The Association shall also be responsible for maintaining any temporary or permanent
irrigation system installed by the Declarant and existing as of the Termination Date. The
Association shall keep the Common Elements in good condition and repair, provide for all
necessary services and cause all acts to be done which may be necessary or proper to assure the
maintenance of the Common Elements.
4.4 Alterations to Common Elements. Only the Association or governmental agency
have jurisdiction over the Common Elements and shall be allowed to construct, reconstruct, or
alter any improvement located on the Common Elements. A proposal for any construction of or
alteration, maintenance or repair to any such improvement may be made at any Board meeting.
The Board may adopt a proposal, subject to the limitations contained in the Bylaws and this
Declaration; however, no improvements may be made to the Common Elements except the
construction, repair, and reconstruction of the private streets, utility installations, landscaping,
curbs, and sidewalks.
4.5 Funding. Expenditures for alterations, maintenance or major repairs to an existing
improvement for which a reserve has been collected shall be made from the Reserve Account.
Regular maintenance, repair, and operating expenses will be funded by annual assessments as
provided in Article 13. As provided in Section 13.10, the Board may levy a Special Assessment to
fund any construction, alteration, repair or maintenance of the Common Elements for which no
reserve has been collected or for which the Reserve Account is insufficient to cover the cost.
4.6 Damage or Destruction of Common Elements and Limited Common Elements. If
all or any portion of the Common Elements or the Limited Common Elements is damaged or
destroyed by an Owner or any of Owner’s guests, Occupants, tenants, licensees, agents or members
of Owner’s family, such Owner hereby authorizes the Association to repair such damage. The
Association shall repair the damage and restore the area in workmanlike manner as originally
constructed or as may be modified or altered subsequently by the Association in the discretion of
the Board. Reasonable costs incurred in connection with affecting such repairs shall become a
Special Assessment upon the Unit and against the Owner who caused or is responsible for such
damage.
4.7 Power of Association to Sell, Convey or Grant Security Interest in Common
Elements. The Association may sell, convey or subject to a security interest any portion of the
Common Elements provided such portions are not necessary to the habitability of a Unit pursuant
to the processes and limitations set forth in RCW 64.90.465.
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ARTICLE 5
LIMITED COMMON ELEMENTS
5.1 Description. All portions of the Project designated as Limited Common Elements
by the Act or this Declaration or shown on the Map are Limited Common Elements.
5.2 Use. Except as otherwise stated herein, the Limited Common Elements are reserved
for the exclusive use of the Unit or Units to which they are most immediately adjacent or are herein
assigned. The right to use the Limited Common Element extends to the Owner’s agents, servants,
tenants, family members, invitees, and licensees. No portion of the Project may be reallocated as
Limited Common Elements, except as provided in this Declaration or the Act.
5.3 Maintenance of the Limited Common Elements. The use, condition, and
appearance of the Limited Common Elements may be regulated under provisions of the Governing
Documents, including the following:
5.3.1 Decisions by Board. Decisions with respect to the standard of
appearance and condition of Limited Common Elements, and with respect to the necessity for
and manner of caring for, maintaining, repairing, replacing, repainting or redecorating Limited
Common Elements (“Maintenance Work”), shall be made by the Board.
5.3.2 Performance of Work. Unless otherwise stated in the Governing
Documents, the Owner or Owners of Units to which the Limited Common Element in question
is assigned or reserved shall perform the Maintenance Work; provided, that by written notice,
the Board may elect to perform Maintenance Work on behalf of an Owner who fails to do so
within any time frames established by the Board.
5.3.3 Owner Pays Costs. Unit Owners will be responsible for the cost of
Maintenance Work for the Limited Common Elements reserved for or assigned to their Units.
With respect to any such Maintenance Work performed by the Association, the cost thereof
(or the appropriate share thereof if the Limited Common Element in question has been assigned
or reserved jointly to more than one Unit) shall be a Specially Allocated Expense assessed
against the Unit or Units (and the Owner or Owners thereof) to which such Limited Common
Element is assigned or reserved pursuant to Section 13.11.
5.3.4 Multiple Owners. With respect to a Limited Common Element
reserved for or assigned to more than one Unit for the mutual and joint use thereof, the cost of
such Maintenance Work for such Limited Common Element shall be divided in equal shares
among the Units for which such Limited Common Element is reserved.
5.4 Reallocation. A Limited Common Element may be reallocated between Units only
with the approval of the Board and by an amendment to this Declaration executed by the Owners
of the Units to which the Limited Common Element was and will be allocated. The Board shall
approve the request of the Owner or Owners under this Section within thirty (30) days, or within
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such other period provided by this Declaration, unless the proposed reallocation does not comply
with the Act or this Declaration. The failure of the Board to act upon a request within such period
shall be deemed approval thereof. The amendment shall be recorded in the names of the parties,
and as an amendment to this Declaration and the Map. Except for Limited Common Elements to
be allocated by the Declarant to the Units in a Subsequent Phase, a Common Element may be
reallocated as a Limited Common Element, or a Limited Common Element may be incorporated
into an existing Unit with the approval of sixty-seven percent (67%) of the Owners, including the
Owner of the Unit to which the Limited Common Element will be allocated or incorporated. Such
reallocation or incorporation shall be reflected in an amendment to this Declaration and the Map.
The costs associated with any amendments to this Declaration and/or the Map required by this
Section 5.4, including the Association’s attorneys’ fees and costs, shall be borne by the Owner or
Owners requesting the amendment. Notwithstanding the foregoing, nothing in this Section 5.4
shall prohibit Declarant from reallocating Limited Common Elements with respect to Units that
have not been conveyed by Declarant.
ARTICLE 6
OWNERSHIP AND EASEMENTS
6.1 Non-Severability. The Allocated Interest of each Owner shall be appurtenant to the
Unit owned by the Owner. No Unit shall be conveyed by the Owner separately from the Allocated
Interest. Any conveyance of any Unit shall automatically transfer the right to use the Common
Elements without the necessity of express reference in the instrument of conveyance. There shall
be no judicial partition of the Common Elements. Each Owner, whether by deed, gift, devise or
operation of law, for such Owner’s benefit and for the benefit of all other Owners, specifically
waives and abandons all rights, interests and causes of action for judicial partition of any interest
in the Common Elements and agrees that no action for judicial partition shall be instituted,
prosecuted or reduced to judgment. Ownership interests in the Common Elements and Units are
subject to the easements granted and reserved in this Declaration. Each of the easements granted
or reserved herein shall be deemed to be established upon the recordation of this Declaration and
shall thenceforth be deemed to be covenants running with the land for the use and benefit of the
Owners and their Units and shall be superior to all other encumbrances applied against or in favor
of any portion of Shelm Meadows.
6.2 Ownership of Units. Title to each Unit shall be conveyed in fee to an Owner. If
more than one person and/or entity owns an undivided interest in the same Unit, such persons
and/or entities shall constitute one Owner.
6.3 Easements. Individual deeds to Units may, but shall not be required to, set forth the
easements specified in this Article 6.
6.3.1 Encroachments. To the extent not provided by the definition of “Unit”
in this Declaration and in the Act, each Unit and all Common Elements and Limited Common
Elements are hereby declared to have an easement over all adjoining Units and Common
Elements and Limited Common Elements for the purpose of accommodating any present or
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future encroachment as a result of engineering errors, construction, reconstruction, repairs,
settlement, shifting, or movement of any portion of the Project, or any other similar cause, and
any encroachment due to building overhang or projection. There shall be valid easements for
the maintenance of the encroaching Units and Common Elements and Limited Common
Elements so long as the encroachments shall exist, and the rights and obligations of Owners
shall not be altered in any way by the encroachment; provided, however, that in no event shall
a valid easement for encroachment be created in favor of a Unit if the encroachment was caused
by the willful act with full knowledge of the Owner. The encroachments described in this
Section shall not be construed to be encumbrances affecting the marketability of title to any
Unit.
6.3.2 Easements on Map. The Common Elements and Units are subject to
the easements and rights-of-way shown on the Map.
6.3.3 Easements for Common Elements. Subject to the restrictions
contained herein, every Owner shall have a non-exclusive right and easement of use and
enjoyment in and to the Common Elements, which shall be appurtenant to and shall pass with
the title to every Unit.
6.3.4 Easements Reserved by Declarant. Declarant reserves an easement
over, under, across, and through the Common Elements for the purposes of completing any
unfinished Units or other improvements, exhibiting and preparing Units for sale, making
repairs required pursuant to any contract of sale, exercising any rights of inspection under this
Declaration, and discharging the Declarant’s obligations or exercising Development Rights or
Special Declarant Rights. Declarant, for itself and its successors and assigns, hereby retains a
right and easement of ingress and egress to, from, over, in, upon, under and across the Common
Elements and the right to store materials thereon and to make such other use thereof as may be
reasonably necessary or incident to the construction of the improvements in the Project in such
a way as not to interfere unreasonably with the occupancy, use, enjoyment or access to an
Owner’s Unit by such Owner or such Owner’s family, tenants, employees, guests or invitees.
6.3.5 Utility Easements Granted by the Declarant. The Declarant reserves
the right to grant to each company or municipality providing utility services to the Project or
to the Owners of Units in the Project easements for the installation, construction, maintenance,
repair, and reconstruction of all utilities serving the Project or the Units, including, without
limitation, such utility services as gas, water, sanitary sewer, storm sewer, electricity, cable
television, and telephone, and an easement for access over and under the Common Elements
of the Project to the utility service facilities. Notwithstanding anything expressed or implied to
the contrary, this Declaration shall be subject to all easements granted or acquired by Declarant
for the installation and maintenance of utilities and drainage facilities necessary for the
development of the Project. No structure, planting or other material that may damage or
interfere with the installation or maintenance of utilities, that may change the direction of flow
of drainage channels in the easements, or that may obstruct or retard the flow of water through
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drainage channels in the easement areas shall be placed or permitted to remain within any
easement area.
6.3.6 Association’s Easements. Declarant grants to the Association and its
duly authorized agents and representatives such easements over the Units, Limited Common
Elements and Common Elements as are necessary to perform the duties and obligations of the
Association, as set forth in the Governing Documents, as the same may be amended.
6.3.7 Easement to Governmental Entities. Declarant grants a non-exclusive
easement over the Common Elements to all governmental and quasi-government entities,
agencies, utilities, and their agents for the purposes of performing their duties as utility and
service providers.
6.3.8 Perimeter Easement Benefitting Association. Declarant grants to the
Association and its duly authorized agents and representatives an easement over that perimeter
portion of each Unit that is included within the building setbacks set by applicable ordinances
for the purposes of installation, maintenance, repair, and replacement of utilities,
communication lines, and drainage. The Board may grant or convey the easements reserved
herein to any governmental body or agency and/or any public or private utility company or
provider, upon a two-thirds (2/3rds) vote of the Board members at a duly called and held Board
meeting.
6.4 Declarant’s Right to Dedicate Common Elements and Grant Easements; Board’s
Authority After Title Transferred to Association. Declarant reserves the right and power to
dedicate and/or convey all or any portion of the Tracts to any governmental body or agency.
Declarant further reserves the right and power to grant an easement over the Common Elements
to any governmental body or agency or any public or private utility company or provider without
the approval of any other Owner or the Association. Declarant’s rights and powers under this
Section shall expire on the Termination Date. Thereafter, the Board shall have the same powers
reserved to Declarant and may exercise such power upon a two-thirds (2/3rds) or greater vote of
the Board members at any duly called and held Board meeting. The provisions of this Section shall
control over any provisions to the contrary contained in any other Section of this Declaration or
any of the Association’s other Governing Documents.
ARTICLE 7
USE, MAINTENANCE AND OCCUPANCY; RULES OF CONDUCT
7.1 Use.
7.1.1 Residential Use. The Project is intended for and restricted to
residential uses only and no trade or business shall be conducted therein unless approved in
writing by the Board. No business, trade or similar activity shall be conducted at the Project,
except that an Owner or Occupant may conduct business activities within their Unit so long as
(a) the existence or operation of the business activity is not apparently detectable by sight,
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sound, or smell from outside the Unit, (b) the business activity conforms to all zoning
requirements and would not be in violation of any applicable law, (c) the business activity does
not involve regular visitation of the Unit by suppliers or door-to-door solicitation of residents
of the Project, (d) the business activity is consistent with the residential character of the Project
and does not constitute a nuisance, a hazardous or offensive use, or threaten the security or
safety of other residents of the Project, as the Board may determine in its reasonable discretion.
Nothing in this Section shall be deemed to prohibit (i) activities relating to the sale of
residences, (ii) the right of Declarant, or any contractor or homebuilder to construct residences
on any Unit, to store construction materials and equipment on such Units in the normal course
of construction, and to use any residence as a sales office or model home for purposes of sales
in Shelm Meadows, and (iii) an Owner’s right to maintain a personal business or professional
library, keep such Owner’s personal business or professional records or accounts, handle such
Owner’s personal business or professional telephone calls or confer with business or
professional associates, clients or customers in such Owner’s residence.
7.1.2 Timesharing Prohibited. Timesharing of Units, as defined in RCW
64.36, is strictly prohibited.
7.2 Use or Alteration of Common Elements and Limited Common Elements. Use of
the Common Elements and Limited Common Elements shall be subject to the provisions of this
Declaration and the Rules and Regulations adopted by the Association. Except as provided in this
Section or elsewhere in this Declaration, nothing shall be altered or constructed in or removed
from any Common Element or Limited Common Element without the prior written consent of the
Board. Owners are responsible for keeping their respective Limited Common Elements in a clean,
attractive, safe, and sanitary condition. In any case in which a provision of this Section conflicts
with a provision of the Rules and Regulations, this Section shall govern.
7.3 Maintenance of Units and Common Elements and Limited Common Elements.
Except as otherwise provided in this Declaration or the Map, the Association is responsible for
maintenance, repair, and replacement of the Common Elements (including all of the items
described in Section 1.11.12) and each Owner is responsible for maintenance and repair of the
Owner’s Unit and the Limited Common Elements allocated or reserved to their Unit. In the
performance of its maintenance obligations, the Association shall maintain, repair and replace all
Common Elements consisting of shared access facilities, private roads, alleys, ingress/egress
easement areas, gates, stop signs, speed limit signs, road signs, storm drainage facilities, and
vegetation. Each Owner shall, at its sole expense, keep the interior of its Unit and its
improvements, equipment, appliances and appurtenances in clean, attractive, safe and sanitary
condition and in full compliance with all applicable governmental laws, rules and regulations and
the provisions of this Declaration and the Rules and Regulations of the Association. Each Owner
shall be responsible for the maintenance, repair, and replacement of, without limitation, windows,
doors, screens, garage doors, accessory buildings, driveways, walks, patios, chimneys, gutter
cleaning, landscaping, fencing, trees to the Unit, and any wiring, vents, plumbing, plumbing
fixtures, water heaters, fans, heating or other equipment, electrical fixtures or appliances which
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serve only that Unit, whether or not located in the Unit. Owners shall be responsible for the
landscaping and maintenance of their yards and lawns, and any improvements located thereon.
Each Owner shall repair damage caused to such Owner’s Unit or improvements located
thereon by fire, flood, storm, earthquake, riot, vandalism, or other causes within a reasonable
period. Owners shall not permit or commit waste of their Unit, the Limited Common Elements, or
the Common Elements. It is the responsibility of Owner to read any homeowners’ maintenance
manual provided by Declarant, and follow the procedures set forth therein to ensure that the Unit
functions in the way it was designed.
7.4 Alteration of Units.
7.4.1 Non-Structural Alterations. An Owner may make improvements to its
Unit that do not affect the structural integrity of the Project, mechanical or electrical systems
of the Project, or lessen the support of any other Units or any part of the Project. Owners may
substitute new finished surfaces for the finished surfaces then existing on said ceilings, floors,
and walls. All repainting or re-staining and exterior remodeling shall be subject to prior review
and approval by the ACC. Nothing in this Section shall be construed to permit any violation
of any other provision of the Governing Documents, or any interference with the use and
enjoyment of the Common Elements or Limited Common Elements of the other Units or any
of them, or materially increasing sound transmission between Units, nor shall it be construed
to limit the powers or obligations of the Board.
7.4.2 Common Elements and Limited Common Elements. An Owner may
not modify, paint, decorate or otherwise change the appearance of or alter the Common
Elements, Limited Common Elements or the exterior appearance of a Unit without prior
written permission of the Association or the ACC.
7.5 Common Drives and Walks. Common drives, walks, corridors, stairways and other
general Common Elements shall be used exclusively for normal transit, and no obstructions and/or
decorations or other items shall be placed thereon or therein except by express written consent of
the Board. Nothing shall be stored or kept in the alleys that impedes or obstructs pedestrian or
vehicular access in the over and across the alleys. All street signs and parking laws shall be
observed.
7.6 Rental of Units. An Owner may rent or lease such Owner’s Unit or a portion
thereof, provided that the following conditions are met and the lease or rental will be subject to
these requirements whether they are included within a lease/rental agreement or not:
7.6.1 Written Rental Agreements Required. The Owner and the lessee enter
into a written rental or lease agreement specifying that (a) the lessee shall be subject to all
provisions of the Governing Documents, and (b) a failure to comply with any provision of the
Governing Documents shall constitute a default under the rental or lease agreement. All leases
shall expressly provide (i) that its terms are subject in all respects to the provisions of this
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Declaration and the other Governing Documents, (ii) that the failure of a lessee, members of
the lessee’s household and their respective invitees to comply with applicable provisions of
the Governing Documents shall constitute a default under the terms of such lease, and (iii) that
in the event of any such default, the Association shall be entitled to maintain an eviction action
against the lessee to the same extent as a Unit Owner, the Association being deemed to be a
third-party beneficiary under such lease. The Board may also, after giving Notice and an
Opportunity to be Heard to the lessee or Occupant and the Owner of the Unit, levy reasonable
fines against the lessee or Occupant and the Owner for violation of the Governing Documents.
The Association may further require that all leases be in a format that is prepared by the
Association or its duly appointed agents. A lessee shall not have any voting rights in the
Association.
7.6.2 Lessee Must Be Given Documents. An Owner shall provide its
lessee(s) with a copy of the Governing Documents, and any subsequent changes respectively
thereto.
7.6.3 Notice to Manager. The Owner shall notify the Manager of any
changes in occupancy of the Unit and the Manager shall maintain a list of residents of the
Units.
7.6.4 Owner Default. If an Owner rents or leases its Unit to a tenant or
lessee, the Board on behalf of the Association may collect, and the tenant or lessee shall pay
over to the Board, so much of the rent for such Unit as is required to pay any amounts due the
Association hereunder, plus interest and costs, if the same are in default over thirty (30) days.
The tenant or lessee shall not have the right to challenge payment over to the Board, and such
payment will discharge the tenant’s or lessee’s duty of payment to the Owner for rent, to the
extent such rent is paid to the Association but will not discharge the liability of the Owner for
Assessments and charges, or operate as an approval of the lease. The Board shall not exercise
this power where a receiver has been appointed with respect to the Unit or its Owner, nor in
derogation of any rights which a Mortgagee of such Unit may have with respect to such rents.
7.7 Garages and Parking. Garages shall be used only for the parking of vehicles and
shall not be used for storage of any kind. Garages shall not be converted into living, office, or
commercial space. No Owner at any time shall keep or permit to be kept in a Unit any boats,
trailers, commercial vehicles, mobile homes, campers, and other recreational vehicles or
equipment, regardless of weight, unless housed within a garage or suitably screened from public
view and stored no nearer than ten (10) feet from any street or from any lot line. Boats, trailers,
commercial vehicles, mobile homes, campers, and other recreational vehicles or equipment shall
not be parked or stored in any way that reduces the available parking within Shelm Meadows and
shall not be parked on any part of the Common Elements, or on any streets on or adjacent to the
Project at any time or for any reason. If an Owner fails to remove any boat, trailer, commercial
vehicle, mobile home, camper, or other recreational vehicle or equipment within five (5) days
following the date on which the Association mails or delivers to such Owner a notice directing
such removal, the Association may have such vehicle removed from the Project and charge the
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expense of such removal to the Owner as an assessment, which may be collected and enforced as
any other assessments imposed pursuant to this Declaration and Bylaws.
7.8 Vehicles in Disrepair. No Owner shall permit any vehicle that is in a state of
disrepair (e.g., including, but not limited to, fails to run, cannot be moved under its own power in
current condition, flat tires, unpainted or body parts missing) or that is not currently licensed to be
abandoned or to remain parked upon the Common Elements or on any street on or adjacent to the
Project at any time and may not permit them on a Unit for a period in excess of seven (7) days. A
vehicle shall be deemed in a “state of disrepair” when the Board reasonably determines that its
presence offends the Occupants of the neighborhood. If an Owner fails to remove such vehicle
within five (5) days following the date on which the Association mails or delivers to such Owner
a notice directing such removal, the Association may have the vehicle removed from the Project
and charge the expense of such removal to the Owner as an assessment, which may be collected
and enforced as any other assessments imposed pursuant to this Declaration and the Bylaws.
7.9 Fences and Hedges. No fences, site-screening improvements, or boundary hedges
shall be installed, erected or replaced without prior written approval of the ACC. Any re-painting
or re-staining of fencing shall be the same paint or stain color as originally installed by the
Declarant. Owners shall, at their sole expense, maintain, repair and replace all fencing and hedges
located on their Unit. The cost to maintain, repair, and replace fencing and hedges located between
two or more Units shall be shared equally by the respective Owners of those Units. All such fences
and hedges must have convenient access ways to allow the Association to carry out its exterior
maintenance and landscaping responsibilities.
7.10 Animals. Domestic household pets, such as dogs, birds and cats, may be kept by
Owners, provided that the keeping of pets shall be subject to such reasonable rules and regulations
as the Board may from time to time adopt, including without limitation limits on the number of
pets kept by Owners. No livestock, rabbits or other animals whatsoever shall be allowed or kept
in any part of the Association, nor may any animal be bred or used therein for any commercial
purpose. The Board may prohibit dangerous breeds of dogs. All pets when outside a Unit shall be
maintained on an adequate leash or other means of physically controlling the pet, by a person
capable of controlling the pet, at all times. The Board may, after Notice and Opportunity to be
Heard, at any time require the removal of any pet which it finds, in its sole discretion, is disturbing
other Owners unreasonably, and may exercise this authority for specific pets even though other
pets are permitted to remain. The Board’s decision to require removal of a pet under this Section
shall be final and shall not be subject to judicial review. The owner of any pet in the Project shall
be responsible for any damage to person or property caused by the pet and shall indemnify and
hold the Association and the Board harmless from any and all liability arising from or caused by
the pet. Any Owner, Occupant, or tenant who maintains any pet upon any portion of Shelm
Meadows shall be deemed to have agreed to indemnify and hold the Association, each of its
members and the Declarant free and harmless from any loss, claim or liability of any kind or
character whatsoever arising by reason of keeping or maintaining such pet. All pets shall be
registered and inoculated as required by law. The Common Elements and Limited Common
Elements shall be free of any pet debris, including food and pet waste, at all times.
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7.11 Signs. No signs shall be erected or maintained on any Unit except that not more
than one (1) “For Sale” or “For Rent” sign placed by the Owner or by a licensed real estate agent,
not exceeding twenty-four (24) inches high and thirty-six (36) inches long, may be temporarily
displayed on any Unit. The restrictions contained in this Section shall not prohibit the display of
the flag of the United States or the temporary placement of “political” signs on any Unit by the
Owner or Occupant; provided, however, political signs shall be removed within three (3) days after
the election day pertaining to the subject of the sign. Real estate signs shall be removed within
three (3) days after the sale closing date.
7.12 Rubbish and Trash. Owners and Occupants shall keep all parts of their respective
Units in a clean and sanitary condition, free of any accumulation of rubbish, refuse or garbage and
free of any fire hazard and shall not cause any accumulation of rubbish, refuse or garbage or any
fire hazard on any other part of the Project. All garbage and other waste shall be kept in appropriate
containers in accordance with the requirements of the garbage hauling and recycling contractors
for proper disposal and out of public view. Yard rakings, dirt and other material resulting from
landscaping work shall not be dumped onto streets, the Common Elements, the Limited Common
Elements or any other Units. There shall be no outside burning of leaves, debris, trash, garbage or
household refuse anywhere in the Project. If an Owner fails to remove any trash, rubbish, garbage,
yard rakings or any similar materials from any Unit, any streets or the Common Elements or the
Limited Common Elements where deposited by such Owner or the Occupants of such Owner’s
Unit after notice has been given by the Board to the Owner, the Association may have such
materials removed and charge the expense of such removal to the Owner. Such charge shall
constitute an assessment, which may be collected and enforced as any other assessments imposed
pursuant to the Declaration and Bylaws.
7.13 Service Facilities. Service facilities (garbage containers, fuel tanks, clotheslines,
etc.) shall be screened such that such facilities are not visible at any time from the street. No on-
site storage of gasoline, heating or other fuels or any flammable liquids or gases shall be permitted
on any part of a Unit, including any dwelling, except that up to five (5) gallons of fuel may be
stored in each home for emergency purposes and for the operation of lawn mowers and similar
tools or equipment.
7.14 Antennas and Satellite Dishes. Except as otherwise provided by law or this Section,
no exterior antennas, satellite dishes, microwave, aerial, tower or other devices for the transmission
or reception of television, radio or other forms of sound or electromagnetic radiation shall be
erected, constructed or placed in or on any portion of the Limited Common Elements, the Common
Elements or a Unit. Each Owner shall have the right to install an “antenna” as permitted under 47
C.F.R. § 1.4000 (as it now exists or is hereafter amended or replaced, or any other federal, state or
local law, code, rule or regulation that preempts, prohibits or limits restrictions on, or conditions
to, the installation, maintenance or repair of telecommunications equipment desired by an Owner),
but no other kind of antenna, dish or receiving device, subject to such reasonable Rules and
Regulations as may be adopted by the Association; provided, however, the Board or ACC may
adopt reasonable rules and regulations governing the installation, safety, placement and screening
of antennas, satellite dishes and other similar devices. The foregoing restriction and the authority
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of the ACC in this matter are subject to any regulations issued by the Federal Communications
Commission or any other applicable governmental authority.
7.15 Exterior Lighting or Noise-making Devices. Except with the consent of the ACC,
no exterior lighting or noise-making devices, other than security and fire alarms, shall be installed
or maintained in any Unit.
7.16 Grades, Slopes and Drainage. There shall be no interference with the established
drainage patterns or systems over or through any Unit within Shelm Meadows so as to affect any
other Unit, Common Elements, Limited Common Elements or any real property outside the Project
unless adequate alternative provision is made for proper drainage and is approved by Thurston
County and the ACC. The term “established drainage” means the drainage swales, conduits, inlets
and outlets designed and constructed for Shelm Meadows. Each Owner shall ensure that all roof
drain down spouts and yard drains are properly cleaned and maintained, and that the tight line
drainage lines or storm infiltration system on each Unit are clean and free of any debris.
7.17 Effect on Insurance. Nothing shall be done or kept in any Unit or in the Common
Elements and Limited Common Elements that will increase the cost of insurance on the Project
without the prior written consent of the Board. Nothing shall be done or kept in any Unit or in any
Common Elements or Limited Common Elements that will result in the cancellation of insurance
on any part of the Project or that would violate any laws.
7.18 Quiet Enjoyment; Improper, Offensive or Unlawful Use; Nuisance. No Owner or
Occupant shall cause or permit such Owner’s representatives, agents, employees, or family
members to cause any nuisance or to make any use or engage in any practice in the Project that is
a source of annoyance to other Owners and Occupants or that interferes with other Owners’ and
Occupants’ peaceful possession and proper use of the Property. No noxious, harmful, improper,
unlawful or offensive activities shall be carried on upon any Unit, Limited Common Element or
Common Element, nor shall anything be done therein that may be or become an annoyance or
nuisance to other Owners and Occupants, or that interferes with the peaceful possession and quiet
enjoyment of the Property. Owners shall not permit any condition to exist that will induce, breed,
or harbor infectious plant diseases or noxious insects or vermin. No marijuana plants may be
grown, in pots or otherwise, anywhere within Shelm Meadows.
7.19 Hazardous Substances. No Owner shall permit any Hazardous Substance to be
generated, processed, stored, transported, handled, or disposed of on, under, in or through the
Owner’s Unit or the Project. Each Owner shall indemnify, defend, and hold harmless the other
Owner or Owners and the Association from all fines, suits, procedures, claims, and actions of any
kind arising out of or in any way connected with any spills or discharges of Hazardous Substances
or wastes arising from the operation or use of the Unit or the Project by the Owner, tenants, or
invitees of the Unit. As used herein, the term “Hazardous Substance” means any hazardous, toxic
or dangerous substance, waste, or material which is or becomes regulated under any federal, state,
or local statute, ordinance, rule, regulation, or other law now or hereafter in effect pertaining to
environmental protection, contamination or cleanup, including without limitation any substance,
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waste, or material which now or hereafter is designated as a “Hazardous Substance” under the
Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. § 9601 et
seq.), or under any local or state rule or regulation. Without limiting the foregoing, Hazardous
Substances shall include, but not be limited to, any substance which after being released into the
environment and upon exposure, ingestion, inhalation, or assimilation, either directly from the
environment or indirectly by ingestion through food chains, will or may reasonably be anticipated
to cause death, disease, behavior abnormalities, cancer, and/or genetic abnormalities.
7.20 Accessory Buildings. Accessory dwelling units are prohibited. Any other accessory
buildings and structures shall require prior approval of the ACC. All accessory buildings and
structures shall be designed, constructed and maintained compatible with the exterior materials,
character and style of the Unit. The ACC may require the accessory buildings to be painted the
same color as the Unit.
7.21 Temporary Structures. No structure of a temporary character or any trailer,
basement, tent, shack, garage, barn or other outbuilding shall be used on any Unit as a residence,
either temporarily or permanently.
7.22 Damage or Destruction to Unit. If all or any portion of a Unit is damaged by fire or
other casualty, the Owner shall either (a) restore the damaged improvements or (b) remove all
damaged improvements, including foundations, and leave the Unit in a clean and safe condition.
Any restoration proceeding under (a) above must be performed so that the improvements are in
substantially the same condition in which they existed prior to the damage, unless the provisions
of Article 7 are complied with by the Owner. The Owner must commence such work within sixty
(60) days after the damage occurs and must complete the work within six (6) months thereafter.
7.23 Right of Maintenance and Entry by Association. The Association may, as a
Common Expense, provide for the inspection of any portion of a Unit or Limited Common
Element, the failure of which to maintain properly may cause damage to the Common Elements,
Limited Common Elements, or another Unit or cause unnecessary Common Expenses, including
but not limited to fireplaces and flues, bathtubs, sinks, toilets, hot water tanks, plumbing and
electrical fixtures. If the inspection discloses the need for repair or replacement, the Association
may either require the responsible Owner to make the repair or replacement or make the repair or
replacement itself and assess the cost thereof to the Owner pursuant to Section 13.10. If an Owner
fails to perform maintenance and/or repair that such Owner is obligated to perform pursuant to this
Declaration, and if the Board determines, after notice, that such maintenance and/or repair is
necessary to preserve the attractiveness, quality, nature and/or value of Shelm Meadows, the Board
may cause such maintenance and/or repair to be performed and may enter any such Unit whenever
entry is necessary in connection with the performance thereof. An Owner may request, and the
Board shall conduct, a hearing on the matter. The Owner’s request shall be in writing delivered
within five (5) days after receipt of the notice, and the hearing shall be conducted within not less
than five (5) days nor more than twenty (20) days after the request for a hearing is received. Entry
shall be made with as little inconvenience to an Owner as practicable and only after advance
written notice of not less than forty-eight (48) hours, except in emergency situations. The costs of
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such maintenance and/or repair shall be chargeable to the Owner of the Unit as an assessment,
which may be collected and enforced as any other assessments authorized hereunder. The
Association and its agents or employees may enter any Unit and the Limited Common Element(s)
allocated thereto to effect repairs, improvements, replacements, maintenance, or sanitation work
deemed by the Board to be necessary in the performance of its duties, to do necessary work that
the Owner has failed to perform, or to prevent damage to the Common Elements, Limited Common
Elements or to another Unit. Except in cases of great emergency that preclude advance notice, the
Board shall cause the Unit Occupant to be given Notice and an Opportunity to be Heard as far in
advance of entry as is reasonably practicable. Such entry shall be made with as little inconvenience
to the Owners and Occupants as practicable. The Board may levy a Special Assessment against
the Owner of the Unit for all or part of the cost of work that the Owner has failed to perform which
may be collected and foreclosed by the Association in the same manner as Assessments are
collected and foreclosed under Article 14. The Board may require Owners and tenants to furnish
duplicate keys to their Units to the Board or the Board’s designated agent.
7.24 Association Rules and Regulations. The Board from time to time may adopt,
modify or revoke such Rules and Regulations governing the conduct of persons and the operation
and use of Units and the Common Elements as it may deem necessary or appropriate to assure the
peaceful and orderly use and enjoyment of the Project and the administration and operation of the
Association. A copy of the Rules and Regulations, upon adoption, and a copy of each amendment,
modification or revocation thereof, shall be delivered by the Board promptly to each Owner and
shall be binding upon all Owners and Occupants of all Units upon the date of delivery or actual
notice thereof. Subject to approval or consent by the Board, the ACC may adopt rules and
regulations pertinent to its functions.
7.25 Ordinances and Regulations. The standards and restrictions set forth in this Article
7 shall be the minimum required. Owners and Occupants shall observe all valid laws, zoning
ordinances and regulations of governmental bodies having jurisdiction over the Project. In the
event of any conflict between any provision of such governmental regulations and the restrictions
of this Declaration, the more restrictive provision shall apply. The responsibility for meeting the
requirements of governmental bodies for maintenance, modification or repair of the Project shall
be carried out and paid for in the same manner as the responsibility for the maintenance and repair
of the Project concerned.
7.26 Declarant Exemptions. The Declarant shall be exempt from the application of this
Article 7.
ARTICLE 8
ARCHITECTURAL CONTROL
8.1 Appointment of Architectural Control Committee. The Board shall appoint at least
three (3) persons to an Architectural Control Committee (“ACC”), at least two (2) of whom shall
also be members of the Board. The ACC shall be a committee working for and reporting to the
Board. During the Declarant Control Period, Declarant at its option may control the powers of the
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ACC and may exercise all of the rights and powers of the Board under this Article 8 including
without limitation the appointment of members of the ACC. As long as Declarant retains some
unsold inventory of Units, then Declarant may at its election have the right to designate one
member of the ACC. Members of the ACC appointed by the Board shall serve at the pleasure of
the Board and may be removed and replaced with or without cause at the discretion of the Board.
Each ACC member will serve for one (1) year. The Board may appoint itself as the ACC or any
of its members to the ACC. If an ACC has not been appointed, the Board shall serve as the ACC.
8.2 Architectural Review. No improvement shall be commenced, erected, placed or
altered on any Unit until the construction plans and specifications showing the nature, shape,
heights, materials, colors, and proposed location of the improvement have been submitted to and
approved in writing by the ACC. This Article’s purpose is to assure quality of workmanship and
materials and harmony between exterior design and the existing improvements and landscaping
and as to location with respect to topography and finished grade elevations. The ACC shall not be
responsible for determining compliance with structural and building codes, solar ordinances,
zoning codes or other governmental regulations, all of which are the applicant’s responsibility.
The procedure and specific requirements for review and approval of construction shall be set forth
in design guidelines and standards adopted from time to time by the ACC. The provisions of this
Article 8 shall apply in all instances in which this Declaration requires the ACC’s consent.
8.3 General Provisions.
8.3.1 The ACC shall establish reasonable procedural rules and may assess a
fee for submission of plans in connection with review of plans and specifications, including
without limitation, the number of set of plans to be submitted.
8.3.2 The address of the ACC shall be the principal office of the Association,
as designated by the Board pursuant to the Bylaws. Such address shall be the place for the
submittal of plans and specifications and the place where the current Architectural Standards,
if any, shall be kept.
8.4 Majority Action. Except as otherwise provided in this Declaration, a majority of
the members of the ACC shall have the power to act on behalf of the ACC, without the necessity
of a meeting and without the necessity of consulting the remaining member or members of the
ACC. The ACC may render its decision only by written instrument setting forth the action taken
by the members consenting thereto.
8.5 Duties and Architectural Standards. The ACC shall consider and act upon the
proposals and/or plans submitted pursuant to this Article 8. The Board and the ACC shall, from
time to time, adopt and promulgate architectural standards for the Units (“Architectural
Standards”). The Architectural Standards shall include, among other things, the following
restrictions and limitations upon the Owners:
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8.5.1 Time limitations for completion of any architectural improvements for
which approval is required pursuant to the Architectural Standards.
8.5.2 Architectural improvements shall conform to the plans and
specifications approved by the ACC and to the Architectural Standards.
8.6 Additional Requirements. In addition, the Architectural Standards may include
such other limitations and restrictions as the Board and the ACC in its reasonable discretion shall
adopt, including, without limitation, the regulation of the following: construction, reconstruction,
exterior addition, change or alteration to or maintenance of any building, structure, dwelling, wall,
fence or landscaping including without limitation, the nature, kind, shape, height, materials,
exterior color and surface and location of such dwelling or structure.
8.7 Submission of Plans to the ACC. All plans and specifications requiring the approval
of the ACC shall be submitted to the ACC at least thirty (30) days prior to the proposed
construction or exterior alteration or repair starting date. Construction, alteration or repair shall not
be started until written approval thereof is given by the ACC. In the event the ACC fails to approve
or disapprove such plans and specifications within thirty (30) days after having been submitted to
the ACC, such approval shall be deemed given by the ACC.
8.8 ACC Discretion. The ACC, at its sole discretion, may withhold consent to any
proposed work if the ACC finds the proposed work would be inappropriate for the particular Unit
or incompatible with the design standards that the ACC intends for the Project. The ACC may
consider siting, shape, size, color, design, height, view preservation, solar access or other effect on
the enjoyment of other Units or the Common Elements, and any other factors that it reasonably
believes to be relevant in determining whether or not to consent to any proposed work.
8.9 Non-Liability. By approving the plans and specifications submitted pursuant to this
Article 8, neither the ACC, the members thereof, the Association, the Owners, the Board, the
Declarant Board, nor Declarant assume liability or responsibility therefore, or for any defect in
any structure constructed from such plans and specifications.
8.10 Sales Facilities of Declarant. Notwithstanding any provision in this Declaration to
the contrary, Declarant (and its agents, employees and contractors) shall be permitted to maintain
during the period of sale of Units upon such portion of the Project as Declarant still owns and as
Declarant may choose, such facilities as in the sole opinion of the Declarant may be reasonably
required, convenient or incidental to the construction, sale or rental of Units, including but not
limited to a business office, storage area, signs, model units, sales office, construction office, and
parking areas for all prospective tenants or purchasers of Declarant.
8.11 Appeals. In the event the plans and specifications submitted to the ACC are
disapproved or any Owner disagrees with any ruling of the ACC, the Owner making such
submission may appeal the ruling to the Board by written notice within thirty (30) days after the
ACC’s final ruling. Within forty-five (45) days following receipt of request for appeal, the Board
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shall meet and render its written decision, which written decision shall be binding upon the ACC
and the Owner appealing the ACC’s ruling. The Board shall give written notice to the appealing
Owner of the time and place of the meeting at least five (5) days in advance. The Board shall make
reasonable efforts to reach a decision within ten (10) days. If the Board is serving as the ACC, then
such appeal shall be deemed a request for reconsideration. During the Declarant Control Period,
the Declarant shall perform the role of the Board described in this Section 8.11.
8.12 ACC Decision. The ACC shall render its written decision approving or denying
each application submitted to it within fifteen (15) working days after its receipt of all materials
required with respect to such application. If the ACC fails to render such written decision within
fifteen (15) days of its receipt of all required materials or request an extension, the application shall
be deemed approved. The ACC shall be entitled to request one or more extensions of time, not to
exceed thirty (30) days. In the event of such extension requests, if the ACC does not render a
written decision within the extension period, the application shall be deemed approved; provided,
however, the applicant may agree to further extensions to allow the applicant to complete or
supplement the application.
8.13 Nonwaiver. Consent by the ACC to any matter proposed to it or within its
jurisdiction shall not be deemed to constitute precedent or waiver impairing its right to withhold
approval as to any similar matter thereafter proposed or submitted to it for consent.
8.14 Effective Period of Consent. The ACC’s consent to any proposed work shall
automatically expire three (3) months after issuance unless construction of the project has been
commenced or the Owner has applied for and received an extension of time from the ACC.
8.15 Determination of Compliance. The ACC may inspect, from time to time, all work
performed and determine whether it is in substantial compliance with the approval granted. If the
ACC finds that the work was not performed in substantial conformance with the approval granted,
or if the ACC finds that the approval required was not obtained, the ACC shall notify the Owner
in writing of the noncompliance. The notice shall specify the particulars of noncompliance and
shall require the Owner to remedy the noncompliance.
8.16 Noncompliance. If the ACC determines that an Owner has not constructed an
improvement consistent with the specifications of an ACC approval or an Owner has constructed
an improvement without obtaining ACC approval, and the ACC sends a notice of noncompliance
to such Owner and such Owner fails to commence diligently remedying such noncompliance in
accordance with such notice, then, effective at 5 p.m. on the third (3rd) day after issuance of such
notice, the ACC shall provide notice of a hearing to consider the Owner’s continuing
noncompliance. The hearing shall be set not more than thirty (30) days from the date on which the
notice of noncompliance was issued. At the hearing, if the ACC finds that there is no valid reason
for the continuing noncompliance, the ACC shall determine the estimated costs of achieving
compliance and may issue a fine against the noncomplying Owner for such amount. The ACC also
shall require the Owner to remedy such noncompliance within ten (10) days after the date of the
ACC’s determination. If the Owner does not comply with the ACC’s ruling within such period or
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any extension thereof granted by the ACC, at its sole discretion, the ACC may remove the
noncomplying improvement, remedy the noncompliance, and/or record a notice of noncompliance
in the Thurston County deed records. The costs of any such action shall be assessed against the
Owner as an assessment either before or after any remedial action is taken.
8.17 Liability. Neither the ACC nor any member thereof shall be liable to any person or
entity for any damage, loss or prejudice suffered or claimed on account of any action or failure to
act of the ACC or a member thereof, provided only that the ACC or the member has, in accordance
with its or his actual knowledge, acted in good faith.
8.18 Estoppel Certificate. Within fifteen (15) working days after the ACC’s receipt of a
written request from an Owner and the ACC’s receipt of payment of a reasonable fee fixed by the
ACC to cover costs, the ACC shall provide such Owner with a certificate executed by the
chairperson or other authorized member of the ACC certifying with respect to any Unit owned by
the Owner, that, as of the date thereof either (a) all improvements made or done upon such Unit
comply with this Declaration, or (b) such improvements do not so comply, in which event, the
certificate shall also identify the noncomplying improvements and set forth with particularity the
nature of such noncompliance. The Owner and such Owner’s heirs, devisees, successors and
assigns shall be entitled to rely on the certificate with respect to the matters set forth therein. The
certificate shall be conclusive as among Declarant, the ACC, the Association, all Owners, and all
persons deriving any interest through any of them.
8.19 Fees. The ACC may charge applicants a reasonable application fee and additional
costs incurred or expected to be incurred by the ACC to retain architects, attorneys, engineers and
other consultants to advise the ACC concerning any aspect of the applications and/or compliance
with any appropriate architectural criteria or standards. Such fees shall be collectible as
assessments.
8.20 Declarant Exempt From ACC. Declarant (including any successor in interest to
Declarant’s status as Declarant) shall not be subject to the restrictions of this Article 8 or any
Architectural Standards as to any Unit owned by Declarant, either during or after the Declarant
Control Period, and shall be exempt from the requirement to submit and have plans approved by
the ACC.
ARTICLE 9
DECLARANT’S SPECIAL RIGHTS
9.1 General. Declarant is undertaking the work of developing Units and other
improvements within the Project. The completion of the development work and the marketing and
sale of the Units is essential to the establishment and welfare of the Project and Additional Property
as a residential community. Until all Units in the Project have been constructed, fully completed
and sold, with respect to the Common Elements and each Unit in the Project, Declarant shall have
the special rights set forth in this Article 9. Declarant shall also have the right to make any other
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repairs or improvements to the Common Elements, Limited Common Elements or the Units as it
deems appropriate.
9.2 Declarant Control Period. During the Declarant Control Period, the Association and
the ACC, together with the Common Elements administered by the Association shall, for all
purposes, be under the management and administration of Declarant or its successors or assigns
including, without limitation, the right to appoint or remove directors of the Interim Board, officers
of the Association and members of the ACC. In addition, Declarant shall have the right to veto or
approve any proposed action of the Interim Board, the Board, the ACC or the Association.
Declarant’s control of the Association during the Declarant Control Period is established
in order to ensure that the Project and the Association will be adequately administered in the initial
phases of development and to insure an orderly transition of Association operations. Following the
Transition Meeting, the Association shall have the authority and obligation to manage and
administer the Common Elements and the Limited Common Elements and to enforce this
Declaration. Such authority shall include all authority provided for in the Act, the Articles of
Incorporation, the Bylaws, the Rules and Regulations and this Declaration, together with other
duties that may be assigned to the Association in any easement or in the Plat. Following the
Transition Meeting, the Association shall also have the authority and obligation to manage and
administer the activities of the ACC and its responsibilities.
9.3 Marketing Rights. Declarant, its agents and its employees have the right to install
and maintain in any Units owned by the Declarant and in any of the Common Elements any
facilities that the Declarant deems necessary or convenient to the construction, marketing, sale or
rental of Units. These facilities include but are not limited to sales offices, business offices,
management offices, construction offices, storage area, signs advertising Shelm Meadows
including “For Sale” signs, model units and parking areas for Declarant and its employees, agents
and contractors, and prospective purchasers and tenants and their agents. Declarant may install and
maintain as many of such facilities as it deems necessary or convenient in such locations as it
deems necessary or convenient. The Declarant may relocate such facilities as it determines is
appropriate in its sole discretion. Declarant and prospective purchasers and their agents shall have
the right to use and occupy the sales office and models during reasonable hours any day of the
week.
9.4 Declarant Easements. Declarant reserves easements over the Project as more fully
described in Article 6 herein.
9.5 Additional Improvements. Declarant does not agree to build any improvements not
described in this Declaration.
9.6 Control of the ACC. Declarant shall have the right, but not the obligation, to control
all aspects of the ACC, including the modification or adoption of the Architectural Standards as
described in Article 8 herein.
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9.7 Special Declarant Rights. In addition to the rights and powers of Declarant set forth
in this Article 9 and elsewhere in this Declaration, during the Declarant Control Period, Declarant
(or persons appointed by Declarant) shall have, without limitation, the following rights and powers
(the “Special Declarant Rights”): (i) to construct and complete the construction of the
improvements indicated on the Plat Map; (ii) to exercise any development right exercisable by a
declarant or the Association under the Act or other applicable Washington law; (iii) to use
easements through the Project and all Common Elements for the purpose of making improvements
to the Units or Shelm Meadows or to real property which may be added to Shelm Meadows; (iv)
subject to Section 2.2, to make Shelm Meadows part of a master association or development
pursuant to applicable law; (v) subject to Section 2.2, to expand Shelm Meadows or withdraw
property from Shelm Meadows; (vi) to convert Units into Common Elements; (vii) to merge or
consolidate Shelm Meadows with any other community of the same type; (viii) to appoint or
remove any director or officer of the Association or any master association, or veto or approve a
proposed action of any Board or Association; (ix) to attend meetings of the Owners and, except
during an executive session, the Board; and (x) to have access to the records of the Association to
the same extent as a Unit Owner. The scope of Special Declarant Rights set forth in this Section
9.7 may not be increased by amendment after the sale of the first Unit, unless such amendment is
approved by Owners other than Declarant representing ninety percent (90%) of the total vote.
9.8 Transfer. The rights described in this Article shall not be transferred except by
instrument evidencing the transfer executed by the Declarant or the Declarant’s successor and the
transferee and recorded in Thurston County. The rights and liabilities of the parties involved in
such a transfer, and of all persons who succeed to any Development Right or Special Declarant
Right, are set out in RCW 64.90.425.
ARTICLE 10
OWNERS’ ASSOCIATION
10.1 Establishment. The Project shall be governed by an association to be called the
SHELM MEADOWS HOMEOWNERS ASSOCIATION.
10.2 Form of Association. The Association shall be a nonprofit corporation formed and
operated pursuant to Title 24 and Chapter 64.90, of the Revised Code of Washington. In the event
of any conflict between this Declaration and the Articles of Incorporation or the Bylaws for the
Association, the provisions of this Declaration shall control. The number of Board members and
qualifications and procedures for election to the Board shall be provided in the Bylaws. The rights
and duties of the Board and of the Association shall be governed by the provisions of the Act and
the Governing Documents.
10.3 Bylaws. The Board will adopt Bylaws to supplement this Declaration, provide for
the administration of the Association and the Project, and for other purposes not inconsistent with
the Act or this Declaration.
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10.4 Members. Each Owner of a Unit (including the Declarant) shall be a member of the
Association and shall be entitled to one membership for each Unit owned, which membership shall
be considered appurtenant to that member’s Unit. Ownership of a Unit shall be the sole
qualification for membership in the Association. A membership shall not be transferred in any way
except upon the transfer of title to the Unit and then only to the transferee of title to the Unit,
provided, that if a Unit has been sold on contract, the contract purchaser shall exercise the rights
of the Owner for purposes of the Association and the Governing Documents, except as hereinafter
limited, and shall be the voting representative unless otherwise specified. Any attempt to make a
prohibited transfer shall be void. Any transfer of title to a Unit shall operate automatically to
transfer the membership in the Association to the new Owner.
10.5 Voting Rights. Each Owner (including Declarant) shall be a member of the
Association and shall be entitled to one (1) vote for each Unit so owned; provided that, if a Unit
has been sold on contract, the contract purchaser shall exercise the rights of the Unit Owner for
purposes of the Association, this Declaration, and the Bylaws, except as hereinafter limited.
10.5.1 Proxy. Each Owner may cast such Owner’s vote in person, by written
ballot or pursuant to a proxy executed by such Owner. An Owner may not revoke a proxy
given pursuant to this Section except by actual notice of revocation to the person presiding
over a meeting of the Association. A proxy shall not be valid if it is undated or purports to be
revocable without notice. A proxy shall terminate one (1) year after its date, unless the proxy
specifies a shorter term.
10.5.2 No Fractional Voting. When more than one (1) person or entity owns
a Unit, the vote for such Unit may be cast as they shall determine, but in no event shall
fractional voting be allowed. Fractional or split votes shall be disregarded, except for purposes
of determining a quorum.
10.6 Procedure. All meetings of the Association, the Board, the ACC, and Association
committees shall be conducted with such rules of order as may from time to time be adopted by
the Board. Unless other rules of order are adopted by a resolution of the Board, Robert’s Rules of
Order published by the Robert’s Rules Association will apply. Notwithstanding which rule of order
is adopted, the President shall be entitled to vote on all matters, not merely to break a tie vote. A
tie vote does not constitute a majority or approval of any motion or resolution.
10.7 Powers of the Association. In addition to those actions authorized elsewhere in this
Declaration, the Association, acting through the Board unless otherwise provided, shall have the
power to:
10.7.1 Adopt and amend Bylaws and this Declaration, provided that
amendment of the Bylaws and this Declaration shall be governed by Article 20.
10.7.2 Adopt, amend and repeal reasonable Rules and Regulations for the
Project; provided, however, that rules that affect the use or occupancy of or behavior in Units
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may be adopted only to (a) implement a provision of this Declaration; (b) regulate any behavior
in or occupancy of a Unit that violates this Declaration or adversely affects the use and
enjoyment of other Units or the Common Elements by other Occupants; and (c) restrict the
leasing of Units to the extent those rules are reasonably designed to meet underwriting
requirements of institutional lenders that regularly make loans secured by first Mortgages on
units in comparable Projects or that regularly purchase those Mortgages and further provided
that the Board must before adopting, amending, or repealing any rule, (i) obtain the approval
of the Declarant as long as the Declarant owns or has the right to create a Unit, (ii) provide all
Unit Owners with notice of its intention to adopt, amend, or repeal a rule and the text of the
rule or the proposed change and a date on which the Board will act on the proposed rule or
amendment after considering comments from Unit Owners and (iii) provide notice to the Unit
Owners of the adoption, amendment, or repeal of the rule together with a copy of any new or
revised rule;
10.7.3 Adopt and amend budgets for revenues, expenditures, and reserves,
and impose and collect Assessments for Common Expenses and Specially Allocated Expenses;
10.7.4 Hire and discharge or contract with Managers and other employees,
agents, and independent contractors; provided that any decision to terminate professional
property management services for the Project and assume self-management shall require the
approval of Owners holding a majority of the votes in the Association;
10.7.5 Institute, defend, or intervene in litigation or administrative
proceedings in its own name on behalf of itself or two or more Unit Owners on matters
affecting the Project; provided, however, the approval of Owners holding at least a majority of
the votes in the Association shall be required before the Association may institute, commence
or intervene in any litigation or administrative proceeding, including arbitration, other than
litigation or other proceedings against Owners for collection of delinquent Assessments or for
enforcement of the Governing Documents, but Owner approval shall not be required for
settlement of such litigation or administrative proceedings;
10.7.6 Make contracts and incur liabilities; provided that any borrowing by
the Association that is to be secured by an assignment of the Association’s right to receive
future income requires ratification by the Unit Owners pursuant to RCW 64.90.405(4);
10.7.7 Provide or regulate the use, maintenance, repair, replacement, and
modification of Common Elements and Limited Common Elements, including, but not limited
to, maintenance of the exteriors of the buildings in accordance with a building envelope
maintenance program furnished to the Association by the Declarant;
10.7.8 Cause additional improvements to be made as a part of the Common
Elements or the Limited Common Elements; provided that, if the estimated cost of any separate
improvement to the Project exceeds $25,000, the approval of the Owners holding a majority
of the votes in the Association shall be required;
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10.7.9 Acquire, hold, encumber, convey, and dispose of, in the Association’s
name, right, title, or interest to real or tangible and intangible personal property; provided that,
if the estimated cost of any separate acquisition exceeds $20,000, the approval of the Owners
holding a majority of the votes in the Association shall be required and further provided that
any conveyance of Common Elements or Limited Common Elements or subjection of
Common Elements or Limited Common Elements to a security interest shall be subject to
compliance with RCW 64.90.465;
10.7.10 Grant easements, leases, licenses, and concessions through or over the
Common Elements and petition for or consent to the vacation of streets and alleys;
10.7.11 Impose and collect any payments, fees, or charges for the use, rental,
or operation of the Common Elements and for services provided to Owners;
10.7.12 Collect Assessments and impose and collect reasonable charges for
late payment of Assessments;
10.7.13 Impose and collect reasonable fees relating to conveyance or change
in occupancy of Units, such as move-in fees and transfer fees;
10.7.14 Acquire and pay for all goods and services reasonably necessary or
convenient for the efficient and orderly functioning of the Project;
10.7.15 Enforce the Governing Documents and, after Notice and an
Opportunity to be Heard, impose and collect reasonable fines for violations of the Governing
Documents in accordance with a previously established schedule of fines adopted by the Board
and furnished to the Owners;
10.7.16 Impose and collect reasonable charges for the preparation and
recording of amendments to this Declaration, resale certificates required by RCW 64.90.640,
and statements of unpaid Assessments;
10.7.17 Provide for the indemnification of its officers and Board, and maintain
directors and officers liability insurance;
10.7.18 Provide or pay, as Common Expenses, the cost of the following utility
services to the Units: water, sewer and garbage collection;
10.7.19 Assign its right to future income, including the right to receive
Assessments, subject to compliance with RCW 64.90.465;
10.7.20 Join in a petition for the establishment of a parking and business
improvement area, participate in the ratepayers’ board or other advisory body set up by the
legislative authority for operation of a parking and business improvement area, and pay special
assessments levied by the legislative authority on a parking and business improvement area
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encompassing the Project for activities and projects that benefit the Project directly or
indirectly;
10.7.21 Establish and administer a reserve account as described in RCW
64.90.535;
10.7.22 Prepare a reserve study as described in RCW 64.90.545;
10.7.23 Exercise any other powers conferred by the Governing Documents;
10.7.24 Exercise all other powers that may be exercised in this state by the
same type of entity as the Association;
10.7.25 Exercise any other powers necessary and proper for the governance
and operation of the Association;
10.7.26 Require that disputes between the Association and Owners or between
two or more owners regarding the Project, other than those governed by Chapter 64.50 RCW,
be submitted to nonbinding alternative dispute resolution as a prerequisite to commencement
of a judicial proceeding;
10.7.27 Suspend any right or privilege of a Unit Owner who fails to pay an
assessment, but may not (a) deny an Owner or other Occupant access to the Owner’s Unit, (b)
suspend an Owner’s right to vote, or (c) withhold services provided to a Unit or an Owner by
the Association if the effect of withholding the service would be to endanger the health, safety,
or property of any person.
10.8 Books and Records, Financial Statements. The Board shall preserve and maintain
minutes of the meetings of the Association, the Board, and any Board committees. The Association
shall keep financial records in accordance with generally accepted accounting principles and in
sufficient detail to enable the Association to comply with the Act in providing resale certificates.
The financial records shall include individual assessment accounts of Owners which detail the
name and address of the Owner or Owners of the Unit, the amount of each assessment as it
becomes due, the amounts paid upon the account, and the balance due on the assessments. All
Books and Records of the Association shall be made reasonably available (at all reasonable hours
of weekdays or under other reasonable circumstances) for examination and copying by Declarant,
and any Owner, Mortgagee, or their agents. At least annually, the Association shall prepare or
cause to be prepared, a financial statement of the Association in accordance with generally
accepted accounting principles by a certified public accountant who is not a member of the Board
or an Owner. The financial statement shall be completed in time for the Association’s annual
meeting and in any event within one hundred twenty (120) days following the end of the fiscal
year. Any Mortgagee will, upon request, be entitled to receive the annual financial statement within
one hundred twenty (120) days following the end of the fiscal year.
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10.8.1 Audit of Books and Records. The Board, persons having majority of
votes of the Association or Eligible Mortgagees holding Mortgages on a majority of the Units
may require that an audit of the Association and management books be presented at any special
meeting. Unless required by the Act, an annual audit may be waived annually by a majority
vote of Unit Owners, excluding the votes allocated to Units owned by Declarant. An Owner or
Mortgagee, at the Owner’s or Mortgagee’s expense, may at any reasonable time conduct an
audit of the books of the Board and Association. Upon written request of a Federal Agency, if
it is a Mortgagee, the Association shall provide it within a reasonable time the financial
statement of the Association for the preceding fiscal year.
10.8.2 Inspection of Governing Documents, Books and Records. The
Association shall make available to Owners, Mortgagees, prospective purchasers and their
prospective Mortgagees, and the agents or attorneys of any of them, current copies of the
Governing Documents and the books, records, and financial statements of the Association.
“Available” shall mean available for inspection upon request, during normal business hours or
under other reasonable circumstances. The Association may require the requesting party to pay
a reasonable charge to cover the cost of making the copies.
ARTICLE 11
DECLARANT CONTROL
11.1 Interim Board and Officers. Declarant hereby reserves administrative control of the
Association until the Termination Date. Declarant, in its sole discretion, shall have the right to
appoint and remove members of an interim board (the “Interim Board”), which shall manage the
affairs of the Association and be vested with all powers and rights of the Board until the
Termination Date. The Interim Board shall consist of one to three (1-3) members. Following the
Transition Meeting and expiration of the Declarant Control Period, there shall be a minimum of
three (3) Directors. Notwithstanding the provision of this Section 11.1, at the Transition Meeting,
at least one (1) Director shall be elected by Owners other than Declarant, even if Declarant
otherwise has voting power to select all three (3) Directors.
11.1.1 Not later than sixty (60) days after conveyance of twenty-five percent
(25%) of the Units that may be created to Owners other than the Declarant, at least one Director
and not less than twenty-five percent (25%) of the Directors of the Board must be elected by
Owners other than Declarant.
11.1.2 Not later than sixty (60) days after conveyance of fifty percent (50%)
of the Units that may be created to Owners other than Declarant, not less than thirty-three and
one-third percent (33.333%) of the Directors of the Board must be elected by Owners other
than Declarant.
11.1.3 Board positions may be added to the extent reasonably necessary to
facilitate compliance with the Act and Sections 11.1.1 and 11.1.2.
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11.1.4 Until such directors are elected and take office, the existing board may
continue to act on behalf of the Association as part of the Interim Board.
11.2 Termination Date. The Declarant Control Period shall cease upon the earlier of the
following dates (the “Termination Date”):
11.2.1 Sixty (60) days after conveyance of seventy-five percent (75%) of the
Units to Owners other than the Declarant;
11.2.2 Two (2) years after the last conveyance of a Unit;
11.2.3 Two (2) years after any right to add new Units was last exercised; or
11.2.4 The day the Declarant, after giving notice in a record to Unit Owners,
records an amendment to this Declaration voluntarily surrendering all rights to appoint and
remove Officers and Board members. If the Declarant voluntarily surrenders control pursuant
to this Section 11.2.4, the Declarant may require that for the duration of the period of Declarant
Control, specified actions of the Association or the Board, as described in a recorded
instrument executed by the Declarant, shall be approved by the Declarant before they become
effective.
11.3 Transition Meeting. Declarant shall call a meeting for the purposes of turning over
administrative control of the Association from Declarant to the Association (the “Transition
Meeting”) within sixty (60) days of the Termination Date. Declarant shall give notice of the
Transition Meeting to each Owner as provided in the Bylaws. If Declarant does not call the
Transition Meeting required under this Section 11.3, the Interim Board or any Owner may do so.
11.4 Declarant’s Transfer of Association Control. Within thirty (30) days after the
Transition Meeting, the Declarant shall deliver to the Association all property of the Owners and
of the Association held or controlled by the Declarant including, but not limited to, the items listed
in RCW 64.90.420.
11.5 Audit of Records Upon Transfer. Within sixty (60) days after the Transition
Meeting, the records of the Association shall be audited as of the date of transfer by a certified
public accountant in accordance with generally accepted auditing standards unless the Owners,
other than the Declarant, by a majority vote, elect to waive the audit. The costs of the audit shall
be a Common Expense.
11.6 Termination of Contracts and Leases Made by the Declarant. Within two (2) years
after the Transition Meeting, the Association may terminate without penalty, upon not less than
ninety (90) days’ notice to the other party, any of the following if it was entered into before the
Board elected pursuant to Section 12.1 takes office, (a) any management contract, employment
contract, or lease of recreational or parking areas or facilities or (b) any other contract or lease
between the Association and the Declarant or an affiliate of the Declarant, as defined by RCW
64.90.010(1). This Section does not apply to any lease, the termination of which would terminate
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the Project or reduce its size, unless the real property subject to that lease was included in the
Project for the purpose of avoiding the right of the Association to terminate a lease under this
Section.
ARTICLE 12
THE BOARD
12.1 Selection of the Board and Officers. Prior to the Termination Date, election or
appointment of members of the Board shall be governed by Section 11.1. Within sixty (60) days
after the Termination Date, the Board must schedule the Transition Meeting at which the Owners
shall elect a Board. After the Termination Date, all Board members must be Owners. The number
of Board members and their terms of service shall be specified in the Bylaws. The Board shall
elect officers in accordance with the procedures provided in the Bylaws. The members of the Board
and officers shall take office upon election. Removal and replacement of Board members shall be
as provided in the Bylaws.
12.2 Powers of the Board. Except as provided in this Declaration, the Bylaws or the Act,
the Board shall at all times act on behalf of the Association. The Board may exercise all powers of
the Association, except as otherwise provided in the Act, this Declaration, or the Bylaws.
12.3 Manager. The Board may contract with an experienced professional Manager to
assist the Board in the management and operation of the Project. The Board may delegate such of
its powers and duties to the Manager as it deems to be appropriate, except as limited herein. If
professional management has been required by a Federal Agency, the procedure for terminating
professional management and assuming self-management shall be that procedure set forth in
Article 21. Any contract with a Manager shall have a term no longer than one year (but may be
renewable by agreement of the parties for successive one-year periods) and shall be terminable by
the Board without payment of a termination fee, either (a) for cause, on thirty (30) days’ written
notice or (b) without cause, on not more than ninety (90) days’ written notice.
12.4 Limitations on Board Authority. The Board shall not act on behalf of the
Association to amend this Declaration in any manner that requires the vote or approval of the Unit
Owners pursuant to Article 20, to terminate the Project pursuant to Article 21, or to elect members
of the Board or determine the qualifications, powers, and duties, or terms of office of members of
the Board. The Board may, in accordance with the Bylaws, fill vacancies in its membership for
the unexpired portion of any term.
12.5 Right to Notice and Opportunity to Be Heard. Whenever this Declaration requires
that an action of the Board be taken after “Notice and Opportunity to be Heard,” the following
procedure shall be observed: The Board shall give written notice of the proposed action to all
Owners, tenants, or Occupants of Units whose interest would be significantly affected by the
proposed action. The notice shall include a general statement of the proposed action and the date,
time, and place of the hearing, which shall be not less than five (5) days from the date notice is
delivered by the Board. At the hearing, the affected person shall have the right, personally or by a
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representative, to give testimony orally, in writing or both (as specified in the notice), subject to
reasonable rules of procedure established by the Board to assure a prompt and orderly resolution
of the issues. Such evidence shall be considered in making the decision but shall not bind the
Board. The affected person shall be notified of the decision in the same manner in which notice of
the meeting was given.
ARTICLE 13
BUDGET AND ASSESSMENTS
13.1 Purpose of Assessments; Expenses. The assessments levied by the Association
shall be used exclusively to pay Common Expenses of Shelm Meadows. Common Expenses shall
include the cost of operation, maintenance, inspection, repair and replacement of the Common
Elements, the administration and operation of the Association, the general expenses and
obligations of the Association, including management and professional fees and costs, insurance
carried by the Association, and any other costs that benefit all Units. Common Expenses shall be
allocated to all Owners in accordance with their Common Expense Liability except where those
expenses are specially allocated pursuant to Section 13.10 and Section 13.11.
13.2 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.
13.3 Budgeting. At least sixty (60) days and not less than thirty (30) days before the end
of the end of each fiscal year, the Board shall prepare a budget for the Association for the coming
year, regardless of the number of Members or the amount of assets of the Association. In preparing
its budget the Board shall estimate the Common Expenses and Specially Allocated Expenses of
the Association to be paid during the year, and shall make suitable provision for accumulation of
reserves, including amounts reasonably anticipated to be required for the operation, maintenance,
repair, and replacement of the Common Elements and the Limited Common Elements and shall
take into account any surplus or deficit carried over from the preceding year and any expected
income to the Association. The budget must include the projected income of the Association by
category, the projected Common Expenses and those Specially Allocated Expenses that are subject
to being budgeted, both by category, the amount of the assessments per Unit and the date the
assessments are due, the current amount of regular assessments budgeted for contribution to the
reserve account, a statement of whether the Association has a reserve study that meets the
requirements of RCW 64.90.550 and, if so, the extent to which the budget meets or deviates from
the recommendations of that reserve study, and the current deficiency or surplus in reserve funding
expressed on a per Unit basis.
13.4 Ratification of Budget. Within thirty (30) days after the adoption of a final budget
by the Board, the Board shall send to each Owner a copy of the final budget, notice of the amount
of the Assessment to be levied pursuant to such budget, and notice of a meeting to consider
ratification of the budget. The Board shall set a meeting of Owners to consider ratification of the
budget not less than fourteen (14) nor more than fifty (50) days after mailing of the budget, or
within such other time period mandated by RCW 64.90.525, as may be amended hereafter. Unless
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at that meeting the Owners to which a majority of the votes in the Association are allocated reject
the budget, the budget shall be ratified, whether or not a quorum is present. In the event the
proposed budget is rejected, or the required notice is not given, the periodic budget last ratified by
the Owners shall be continued until such time as the Owners ratify a subsequent budget proposed
by the Board. If any Additional Property has been annexed, the Board shall approve a new budget
for the remainder of the current year.
13.4.1 Supplemental Budget. If during the year the budget proves to be
inadequate for any reason, including nonpayment of any Owner’s Assessment, the Board may
prepare a supplemental budget for the remainder of the year, which shall be subject to
ratification by the Owners pursuant to Section 13.4.
13.4.2 Allocation of Assessments. The total amount in the budget shall be
charged equally against all Units that are subject to assessment. After annexation of Additional
Property, the allocation and assessment of the charges in the budget shall be reallocated equally
to all Units subject to assessment.
13.4.3 Nonwaiver of Assessments. If before the expiration of any year, the
Association fails to make a budget or fix annual Assessments for the next year, the annual
assessments established for the preceding year shall continue until a new annual assessment is
fixed, and shall not be deemed a waiver or modification in any respect of the provisions of the
Governing Documents, or a release of the Owners from the obligation to pay Assessments
during that or any subsequent year. The monthly Assessments amounts established for the
preceding year shall continue until new Assessments are established.
13.5 Notice of Assessments. The Board shall notify each Owner in writing of the amount
of the monthly general Assessments and Special Assessments to be paid for the Owner’s Unit and
shall furnish copies of all budgets and the Common Expense Liability allocations which apply to
the Unit, on which the general Assessments and Special Assessments are based. The Board shall
furnish the same information to an Owner’s Mortgagee if so requested.
13.6 Covenants to Pay. The Owners covenant and agree to pay the Association the
assessments and any additional charges levied pursuant to this Declaration or the Bylaws.
13.7 Basis and Payment of Assessments. The amounts required by the Association for
Common Expenses and Specially Allocated Expenses as reflected by the annual budget and any
supplemental budgets may be divided into installments to be paid each month over the period of
time covered by the budget or supplemental budget. The monthly Assessment for each Unit is
equal to (a) any Specially Allocated Expenses for the Unit, plus (b) the Common Expense Liability
of that Unit times the total monthly installment for Common Expenses for all Units. On or before
the first (1st) day of each calendar month each Owner shall pay or cause to be paid to the treasurer
or designated agent of the Association all Assessments against the Unit for that month. Any
assessment not paid by the tenth (10th) day of the calendar month in which it is due shall be
delinquent and subject to late charges, interest charges and collection procedures as provided in
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Article 14 or as under such policies and procedures as the Association may from time to time
adopt.
13.7.1 Funds Held in Trust. The assessments collected by the Association
shall be held by the Association for and on behalf of each Owner and shall be used solely as
set forth in Section 13.1. The assessments are the property of the Association and are not
refundable to Owners or Units. Upon the sale or transfer of any Unit, the Owner’s interest in
such funds shall be deemed automatically transferred to the successor in interest to such
Owner.
13.7.2 Proceeds Belong to Association. All Assessments and other receipts
received by the Association on behalf of the Project shall belong to the Association.
Association profits, if any, shall be the property of the Association.
13.7.3 Offsets. No offsets against any assessment shall be permitted for any
reason, including, without limitation, any claim that the Association is not properly discharging
its duties.
13.8 Commencement of Assessments. Monthly Assessments shall begin accruing for all
Units upon the first conveyance of a Unit by the Declarant, provided that the Declarant may delay
the commencement of Assessments for Common Expenses and Specially Allocated Expenses
against the Units in that phase and continue to pay all actual Common Expenses (but no allocations
to reserves) with respect to the improvements in that phase. Monthly Assessments shall begin
accruing with respect to all Units added in each Subsequent Phase upon the first conveyance by
the Declarant of a Unit added in that phase, provided that the Declarant may delay the
commencement of Assessments against the Units in that phase and continue to pay all actual
Common Expenses (but no allocations to reserves) with respect to the improvements in that phase.
To the extent that any common expense is caused by an Owner or Occupant of a Unit, the
Association may assess that expense against that Unit.
13.9 Initial Working Capital Contribution. Upon conveyance of a Unit to an Owner by
the Declarant, that Owner shall pay to the Association, in addition to other amounts due, a
contribution to the Association’s working capital an amount equal to two (2) months of monthly
assessments, which amount shall not be considered as an advance payment of regular Assessments.
Such working capital contributions shall not be used to defray Declarant’s expenses in completing
the construction of the Project, to pay Declarant’s contributions to Association reserves, or to make
up any deficits in the budget of the Association prior to the Termination Date. On the Termination
Date, the Declarant shall make such contribution for any Units remaining unsold on that date and
shall be entitled to be reimbursed the amount so paid as each such Unit is conveyed.
13.10 Special Assessments. The Association may levy Special Assessments for the
following purposes:
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13.10.1 Correct Deficit. To correct a deficit in the operating budget, by vote of
a majority of the Board;
13.10.2 Special Obligations of an Owner. To collect amounts due to the
Association from an Owner for breach of the Owner’s obligations under this Declaration, the
Bylaws, or the Rules and Regulations, or to the extent that any Common Expense is caused by
the misconduct of an Owner or relates to the repair of any Common Element or Limited
Common Element, the Board may levy a Special Assessment for the expense against the Unit
without ratification of the Owners;
13.10.3 Repairs. To collect additional amounts necessary to make repairs or
renovations to the Common Elements if sufficient funds are not available from the operating
budget or reserve accounts, by vote of a majority of the Board; and
13.10.4 Capital Improvements. To make capital acquisitions, additions or
improvements, by vote of at least eighty percent (80%) of all votes allocated to the Units,
except those Units owned by Declarant.
13.11 Specially Allocated Expenses.
13.11.1 General. Any expenses or liabilities attributable to goods or services
benefiting one or more but fewer than all the Units, shall be specially allocated to the benefitted
Unit(s).
13.11.2 Sewer Capacity Charge, LIDs, etc. Any charges or assessments
imposed by any governmental agency (e.g., for sewer capacity, local improvement district, or
business improvement district) shall be allocated in the same manner those charges and
assessments are levied by the governmental agency.
13.11.3 Utilities. Expenses related to utilities shared by more than one Unit, if
any, shall be allocated among the Units in accordance with usage as reasonably determined by
the Association.
13.11.4 Insurance. Premiums for insurance obtained by the Association shall
be allocated among the Units in accordance with risk. In the usual case, this Specially Allocated
Expense will be the same as the Common Expense Liability. However, to the extent that any
insurance premiums increase based on the particular activities, uses, or configuration of one
Unit more than other Units, such increase would be specially allocated to such Unit under this
Section.
13.11.5 Allocation of Costs and Liability Not Covered by Insurance. Any cost
or liability not covered by insurance maintained by the Owners or Association, including the
cost of deductibles and any coinsurance, shall be allocated: (a) to the applicable Owner to the
extent the same relates to such Owner’s Unit, or assigned Limited Common Elements; and (b)
to the Owners in accordance with their Common Expense Liability to the extent the same
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relates to the Common Elements. Notwithstanding the foregoing, each Owner shall bear all of
the costs and liability for claims made against such Owner to the extent caused by its negligent
or wrongful acts or omissions and an Owner’s responsibility for such acts or omissions shall
not be directly or indirectly shifted to any other Owner through a Specially Allocated Expense
under this Section. This Section is for the sole benefit of Owners and the Association and shall
not affect any waivers of subrogation rights set forth herein or elsewhere.
13.12 Recalculation of Assessments. If Common Expense Liabilities are reallocated,
Assessments for Common Expenses and Specially Allocated Expenses, Special Assessments, and
any installment thereof not yet due shall be recalculated in accordance with the reallocated
Common Expense Liability.
13.13 Reconciliation of Assessments to Actual Expenses. The Association shall establish
and maintain its accounts and records in such a manner that will enable it to credit the Assessments
for Common Expenses (including Special Assessments and Specially Allocated Expenses) and
other income to the Association to the account of the appropriate Units and make its expenditures
from the appropriate accounts. The accounts of the Association shall be reconciled as necessary to
ensure the Owners are correctly assessed for the actual expenses of the Association, and any
surpluses (or deficits) in the accounts shall be credited to the benefit of or paid to (or charged to
the account of or assessed against) the Owners who paid the surplus (or owe the deficit).
Reconciliation shall not be necessary if the administrative cost of doing so will exceed the total
adjustment likely to result from the reconciliation.
13.14 Accounts. The Association shall deposit those portions of the Assessments
collected for current maintenance and operation of the Common Elements and Limited Common
Elements into the Operating Account which shall be a bank account maintained at a federally
insured banking institution. Unless otherwise exempt under the Act, the Association shall maintain
a separate Reserve Account and shall deposit those portions of the assessments collected as
reserves for major maintenance, repair, replacement and deferred maintenance of the Common
Elements into the Reserve Account, subject to the requirements of Section 13.16. All costs other
than those to be paid from the Reserve Account may be paid from the Operating Account. In the
Books and Records of the Association, the Association shall account separately for operating
expenses relating to the Common Elements and operating expenses relating to all other matters, as
well as for necessary reserves relating to the Common Elements and necessary reserves relating to
all other matters.
13.15 Reserve Study. Unless otherwise exempt under the Act, the Association shall obtain
a reserve study (the “Reserve Study”) and updated Reserve Studies pursuant to RCW 64.90.550,
as may be hereafter amended. An updated Reserve Study must be prepared annually and need not
be completed each year by a reserve study professional in compliance with the Act. The Reserve
Study shall: (a) identify all items for which reserves are or will be established (if any); (b) include
the estimated remaining useful life of each item, as of the date of the Reserve Study; and (c) include
for each item, as applicable, an estimated cost of maintenance and repair and replacement at the
end of the item’s useful life. Within thirty (30) days after conducting the Reserve Study, the Board
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shall provide to every owner a written summary of the Reserve Study and of any revisions to the
thirty (30)-year plan adopted by the Board or the Declarant as a result of the Reserve Study.
13.16 Reserve Account. Once Assessments for Reserves are collected, the Board shall
establish one or more accounts in the name of the Association, for the deposit of reserve
contributions (the “Reserve Account”). The Reserve Account shall be a bank account maintained
at a federally insured banking institution and shall be kept separate from all other funds held by
the Association. The Board shall annually determine the Reserve Account requirements, if any, by
conducting a Reserve Study, or reviewing and updating an existing Reserve Study using the
following information: (a) the starting balance of the Reserve Account for the current fiscal year;
(b) the estimated remaining useful life of each item for which reserves are or will be established,
as of the date of the Reserve Study or review thereof; (c) the estimated cost of maintenance and
repair and replacement at the end of the useful life of each item for which reserves are or will be
established; (d) the rate of inflation during the current fiscal year; and (e) returns on any invested
reserves or investments. After review of the Reserve Study, the Board may, without any action by
the Owners: (i) adjust the amount of payments as indicated by the Reserve Study or update thereof;
and (ii) provide for other reserve items to be included in the Reserve Account that the Board, in its
discretion, may deem appropriate. Unless the Board determines pursuant to this Section that the
Reserve Account will be adequately funded for the following year, the Board or Owners may not
vote to eliminate funding the Reserve Account; provided, however, that notwithstanding the
foregoing, after the Transition Meeting, on an annual basis, the Board, with the approval of all of
the Owners, may elect not to fund the Reserve Account for the following year.
13.16.1 Calculation of Reserve Assessment. The Reserve Account shall be
funded by Assessments against the Units for which the reserves are established (the “Reserve
Assessments”). Reserve Assessments are based on the estimated remaining life and current
replacement cost of those Common Elements which normally requires major maintenance,
repair or replacement, in whole or in part, within one (1) to thirty (30) years. The portion of
the initial Assessment levied against each Unit allocated to the Reserve Account shall be based
on the Reserve Study (as defined in Section 13.15) or other reliable information as determined
by the Declarant or Board, as applicable, in its reasonable discretion. Not less often than
annually, the Board shall inventory all Common Elements and shall estimate the remaining life
of each item and the current replacement cost of each of such items. The Reserve Assessment
shall be equal to the sum of the estimated major maintenance, repair or replacement cost of
each item which has an estimated life of greater than one (1) but less than thirty (30) years,
divided by the estimated number of years of life for such item. The Board shall annually
conduct the maintenance plan of the Common Elements prescribed by the existing Reserve
Study and update the existing Reserve Study as required by the Act to determine the Reserve
Account and Reserve Assessment requirements.
13.16.2 Reserve Account Restrictions. No funds collected for the Reserve
Account may be used for ordinary current maintenance and operation purposes. The Reserve
Account need not include reserves for any of the following: (a) items that can reasonably be
funded from the general budget or other funds or accounts of the Association; or (b) items for
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which one or more, but less than all, Owners are responsible for maintenance and replacement
under the provisions of this Declaration or Bylaws. Withdrawal of funds from the
Association’s Reserve Account shall require the approval of either two (2) Directors or one (1)
Director and an officer of the Association who is not a Director.
13.16.3 Loan from Reserve Account. After the Transition Meeting, the Board
may borrow funds from the Reserve Account to meet high seasonal demands on the
Association’s regular operating fund or to meet unexpected increases in expenses. Funds
borrowed must be repaid later from assessments if the Board has adopted a resolution, which
may be an annual continuing resolution, authorizing the borrowing of funds. Not later than the
adoption of the budget for the following year, the Board shall adopt by resolution a written
payment plan providing for repayment within a reasonable period.
13.16.4 Investment of Reserve Account. Assessments paid into Reserve
Accounts shall be kept with a safe and responsible depository, shall be accounted for
separately, and, if invested, the Association must comply with the restrictions set forth in the
Act.
13.16.5 Refunds of Assessments. Assessments paid into the Reserve Account
are the property of the Association and are not refundable to sellers or Owners of Units. Sellers
or Owners of Units may treat their outstanding share of the Reserve Account’s balance as a
separate item in the sales contract providing for the conveyance of their Unit. No Owner shall
have any individual rights in any of these reserves, although it is understood that the value of
an Owner’s Unit may increase in proportion to such Unit’s right to receive repair, maintenance
and replacement therefrom.
13.17 Certificate of Assessments. The Association shall provide, within ten (10) business
days of receipt of a written request from an Owner or Mortgagee of a Unit, a written statement that
provides:
13.17.1 The amount of assessments due from the Owner and unpaid at the time
the request was received, including (a) regular Assessments and Special Assessments,
including any Reserve Assessments; (b) fines and other charges; (c) accrued interest; and (d)
late payment charges;
13.17.2 The interest rate for Assessments that are not paid when due;
13.17.3 The percentage rate used to calculate the charges for late payment or
the amount of a fixed charge for late payment.
The certificate shall be conclusive upon the Board and the Association as to the amount of such
indebtedness on the date of the certificate in favor of all purchasers and Mortgagees of the Unit
who rely on the certificate in good faith. The Board may establish a reasonable fee to be charged
to reimburse it for the cost of preparing the certificate. In addition, the Board shall furnish resale
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certificates to the extent required by RCW 64.90.640, and shall provide such other information as
may be reasonably requested by an Owner or its Mortgagee including an estoppel certificate
confirming the identity of the Owner, its voting representative, amount and status of payment of
Assessments, any significant anticipated expenses which are not reflected in the budget or for
which adequate reserves are not maintained, a summary of any pending or threatened litigation,
whether the Owner or its Occupants and invitees are in compliance with this Declaration and any
Rules and Regulations adopted by the Board, and any other information reasonably requested. The
estoppel certificate shall be based on the actual knowledge of the Directors then serving on the
Board and a reasonable review of the Books and Records of the Association available to them. The
Association is not required to comply with this Section 13.17 if the Association has commenced
litigation by filing a complaint against the Owner and the litigation is pending when the statement
would otherwise be due.
ARTICLE 14
LIEN AND COLLECTION OF ASSESSMENTS
14.1 Priority of Association Lien. The Association has a lien against each Unit for any
assessment (of any type provided for by this Declaration or the Bylaws) or installment thereof
from the time the Assessment is due. The Association’s lien shall secure all future assessments or
installments, reimbursement assessments, interest, late fees, penalties, fines, attorneys’ fees
(whether or not suit or action is instituted), actual administrative costs, and other appropriate costs
properly chargeable to an Owner by the Association, until such amounts are fully paid. A lien
under this Article shall be prior to all other liens and encumbrances on a Unit except as otherwise
provided in the Act. Recording of this Declaration constitutes record notice and perfection of the
lien for Assessments; however, the Association may record a notice of claim of lien for
Assessments in the real property records of Thurston County. Said lien may be foreclosed at any
time pursuant to the Act. Recording of such claim of lien shall not constitute written notice of
delinquency to a Mortgagee, and any Eligible Mortgagee or Mortgagee which has given the
Association a written request for a notice of delinquent Assessments. The Association shall
provide a notice of delinquency to an Eligible Mortgagee or Mortgagee who has given notice to
the Association within fifteen (15) days of such delinquency.
14.1.1 Personal Obligation. All assessments properly imposed under this
Declaration or the Bylaws shall be the joint and several personal obligation of all Owners of
the Unit to which such assessment pertains. In a voluntary conveyance (that is, one other than
through foreclosure or a deed in lieu of foreclosure), the grantees shall be jointly and severally
liable with the grantors for all Association assessments imposed through the recording date of
the instrument effecting the conveyance. A suit for a money judgment may be maintained by
the Association to recover such assessments without either waiving or foreclosing the
Association’s lien securing such sums. Notwithstanding the foregoing, a lien for unpaid
Assessments and the personal liability for payment of Assessments is extinguished unless
proceedings to enforce the lien or collect the debt are instituted within six (6) years after the
amount of the Assessments sought to be recovered becomes due.
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14.1.2 Interest; Fines; Late Fees; Penalties. The Board, in its reasonable
discretion, may from time to time adopt resolutions to set the rate of interest and to impose late
fees, fines and penalties on delinquent assessments or for violations of the provisions of this
Declaration, the Bylaws, Architectural Standards and the Rules and Regulations adopted by
the Board or the ACC. Delinquent Assessments shall bear interest from the date of delinquency
at the maximum rate permitted under RCW 19.52.020 on the date on which the Assessments
became delinquent. The adoption of such impositions shall be communicated to all Owners in
writing before the effective date by a notice mailed to the assessment billing address of such
Owners or transmitted electronically to the Owners as permitted by the Act. Such impositions
shall be considered assessments that are lienable and collectible in the same manner as any
other assessments; provided, however, that fines or penalties for violation of this Declaration,
the Bylaws or any rule and regulation, other than late fees, fines or interest arising from an
Owner’s failure to pay regular assessments or Special Assessments may not be imposed against
an Owner or such Owner’s Unit until such Owner is given Notice and Opportunity to be Heard
as elsewhere provided herein.
14.1.3 Acceleration of Assessments. If an Owner is delinquent in payment of
any assessment or installment on any assessment, the Association, upon not less than ten (10)
days’ written notice to the Owner, may accelerate the due date of the full annual assessment
for that calendar year and all future installments of any Special Assessments.
14.1.4 Association’s Right to Rents; Receiver. In any foreclosure suit by the
Association with respect to such lien, the Association shall be entitled to collect reasonable
rent from the defaulting Owner for the use of such Owner’s Unit or shall be entitled to the
appointment of a receiver.
14.2 Waiver of Homestead. Each Owner hereby waives, to the extent of any liens created
pursuant to this Article 14, the benefit of any homestead or exemption law in effect at the time any
assessment or installment thereof becomes delinquent or any lien is imposed pursuant to the terms
hereof.
14.3 Lien May Be Foreclosed; Judicial Foreclosure. A lien arising under this Article may
be enforced judicially by the Association or its authorized representative in the manner set forth in
RCW 61.12, or nonjudicially in the manner set forth in Section 14.4. The Association or its
authorized representative shall have the power to purchase the Unit at the foreclosure sale and to
acquire, hold, lease, mortgage, or convey the same. Upon an express waiver in the complaint of
any right to a deficiency judgment in a judicial foreclosure action, the period of redemption shall
be eight (8) months. Nothing in this Section shall prohibit the Association from taking a deed in
lieu of foreclosure. Except as provided in Section 14.1, the holder of a Mortgage or other purchaser
of a Unit who obtains the right of possession of a Unit through foreclosure shall not be liable for
any Assessments or installments thereof that became due prior to such right of possession. Such
unpaid Assessments shall be deemed to be Common Expenses collectible from all the Owners,
including such Mortgagee or other purchaser of the Unit. Foreclosure of a Mortgage does not
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relieve the prior Owner of personal liability for Assessments accruing against the Unit prior to the
date of such sale.
14.4 Nonjudicial Foreclosure. A lien arising under this Article may be foreclosed
nonjudicially in the manner set forth in RCW 61.24 for nonjudicial foreclosure of deeds of trust.
For the purpose of preserving the Association’s nonjudicial foreclosure option, this Declaration
shall be considered to create a grant of each Unit in trust to Chicago Title Insurance Company or
its successors or assigns (“Trustee”), to secure the obligations of each Unit Owner (“Grantor”) to
the Association (“Beneficiary”) for the payment of Assessments. Grantor shall retain the right to
possession of Grantor’s Unit so long as Grantor is not in default of an obligation to pay
Assessments. The Trustee shall have a power of sale with respect to each Unit, which becomes
operative in the case of a default in a Grantor’s obligation to pay Assessments. The Units are not
used principally for agricultural or farming purposes. If the Association forecloses its lien
nonjudicially pursuant to this Section, it shall not be entitled to the lien priority over liens and
encumbrances described in Section 14.1.
14.5 Receiver During Foreclosure. From the time of commencement of an action by the
Association to foreclose a lien for nonpayment of delinquent Assessments against a Unit that is
not occupied by the Owner thereof, the Association shall be entitled to the appointment of a
receiver to collect from the lessee thereof the rent for the Unit as and when due. If the rent is not
paid, the receiver may obtain possession of the Unit, refurbish it for rental up to a reasonable
standard for rental Units in this type of Project, rent the Unit or permit its rental to others, and
apply the rents first to the cost of the receivership and attorneys’ fees thereof, then to the cost of
refurbishing the Unit, then to applicable charges, then to costs, fees, and charges of the foreclosure
action, and then to the payment of the delinquent Assessments. Only a receiver may take
possession and collect rents under this Section, and a receiver shall not be appointed less than
ninety (90) days after the delinquency. The exercise by the Association of the foregoing rights
shall not affect the priority of preexisting liens on the Unit.
14.6 Recovery of Attorneys’ Fees and Costs. The Association shall be entitled to recover
any costs and reasonable attorneys’ fees incurred in connection with the collection of delinquent
Assessments, whether or not such collection activities result in suit being commenced or
prosecuted to judgment. In addition, the Association shall be entitled to recover costs and
reasonable attorneys’ fees if it prevails on appeal and in the enforcement of a judgment.
14.7 Security Deposit. An Owner who has been delinquent in paying monthly
Assessments for three (3) of the five (5) preceding months may be required by the Board, from
time to time, to make and maintain a security deposit not in excess of three months’ estimated
monthly Assessments, which shall be collected and shall be subject to penalties for nonpayment
as are other Assessments. The deposit shall be held in a separate fund, credited to such Owner, and
may be resorted to at any time when such Owner is ten (10) days or more delinquent in paying
Assessments.
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14.8 Remedies Cumulative. The remedies provided herein are cumulative and the Board
may pursue them, and any other remedies which may be available under law although not
expressed herein, either concurrently or in any order.
ARTICLE 15
ENFORCEMENT OF DECLARATION, BYLAWS,
AND RULES AND REGULATIONS
15.1 Rights of Action. Each Owner, the Board, and the Association shall comply strictly
with the Governing Documents, as they may be lawfully amended from time to time, and the
decisions of the Board. Failure to comply with any of the foregoing shall be grounds for an action
to recover sums due, damages, and for injunctive relief, or any or all of them, maintainable by the
Board on behalf of the Association or by an Owner.
15.2 Failure of Board to Insist on Strict Performance No Waiver. The failure of the
Board in any instance to insist upon the strict compliance with the Governing Documents, or to
exercise any right contained in such documents, 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 Board of payment of an Assessment from an Owner,
with knowledge of a breach by the Owner, shall not be a waiver of the breach. No waiver by the
Board of any requirement shall be effective unless expressed in writing and signed for the Board.
This Article also extends to the Declarant.
15.3 Board Enforcement. The Board has the authority to enforce the Governing
Documents by imposing the remedies provided herein. After repeated violations of the Governing
Documents by an Owner and after an Owner’s Right to Notice and Opportunity to be Heard, the
Board shall have the authority to file an action for damages and for injunctive relief, including in
a proper case, removal of the Owner from the Owner’s Unit and the authority to pursue any and
all remedies available in law or equity.
15.4 Recovery of Attorneys’ Fees and Costs. The Association shall be entitled to recover
any costs and reasonable attorneys’ fees incurred in connection with the enforcement of the
Governing Documents against any Owner, whether or not such enforcement results in suit being
commenced or prosecuted to judgment. In addition, the Association shall be entitled to recover
costs and reasonable attorneys’ fees if it prevails on appeal and in the enforcement of a judgment.
ARTICLE 16
INSURANCE
16.1 General Requirements. Commencing not later than the time of the first conveyance
of a Unit to a person other than the Declarant, the Association shall maintain as a Common
Expense, to the extent reasonably available, a policy or policies and bonds necessary to provide
(a) property insurance, (b) commercial general liability insurance, (c) fidelity insurance, (d)
workers’ compensation insurance to the extent required by applicable laws, (e) directors and
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officers liability insurance and (f) such other insurance as the Board deems advisable to protect the
Association or the Owners, or as may be required by Federal Agencies, so long as any of them is
a Mortgagee or Owner of a Unit, except to the extent such coverage is not available or has been
waived in writing by them. The property insurance and liability insurance shall cover the
ownership, use and operation of all of the Common Elements (and improvements to the Common
Elements), if any, including common personal property and supplies belonging to the Association.
The Board shall review at least annually the adequacy of the insurance coverage required under
this Article 16. All insurance shall be obtained from insurance carriers who are authorized to do
business in the state of Washington, meet the specific requirements of Federal Agencies regarding
the qualifications of insurance carriers, and are otherwise reasonably acceptable to the Board.
16.2 Property Insurance.
16.2.1 Common Elements. The property insurance on the Common Elements
and Limited Common Elements shall insure against risks of direct physical loss commonly
insured against, which insurance, after the application of any reasonable deductibles as the
Board may determine, must not be less than eighty percent (80%) of the actual cash value of
the insured property at the time the insurance is purchased and at each renewal date, exclusive
of land, excavations, foundations, and other items normally excluded from property policies.
The policy may, in the discretion of the Board, cover improvements or betterments installed
by the Unit Owners and loss due to earthquake. 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 the interest in the Common Elements appertaining to the Owner’s
Unit. If a loss or damage to a Unit would be covered by the Association’s policy, but such loss
or damage is within the deductible (but not the deductible for an earthquake policy) of the
Association’s policy, the Association may assess a Specially Allocated Expense against the
Owner of that Unit for the amount of the loss up to the deductible under the Association’s
policy for: (a) damage or loss within the Owner’s Unit; (b) damage to another Unit or to the
Common Elements resulting from the negligence or misconduct of the Unit Owner or tenant
of the Owner’s Unit; or (c) damage resulting from faulty or leaking plumbing fixtures or pipes,
hot water tanks, sinks, bathtubs, showers, toilets, dishwashers, washers, including any
connecting hoses or drains in or serving only the Owner’s Unit.
16.2.2 Certificates and Memoranda of Insurance. An insurer that has issued
an insurance policy to the Association shall issue certificates or memoranda of insurance to the
Association and, upon a written request, to any Owner or Mortgagee.
16.3 Commercial General Liability Insurance. The commercial general liability
insurance policy shall cover all occurrences commonly insured against for bodily injury and
property damage arising out of or in connection with the use, ownership, or maintenance of the
Common Elements and shall include medical payments insurance, and shall insure the Board,
Association, Owners, Declarant, and Manager with regard to the Common Elements in the Project.
The limits of liability shall be in amounts generally required by Mortgagees for plat communities
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of similar construction, location, and use which shall be at least One Million Dollars ($1,000,000)
combined single limit for bodily injury and property damage per occurrence, and Two Million
Dollars ($2,000,000) general aggregate.
16.4 Fidelity Insurance. The required fidelity insurance shall afford coverage to protect
against dishonest acts on the part of the Board and all officers, directors, trustees, and employees
of the Association, and all other persons who handle or are responsible for handling funds of or
administered by the Association. The Manager shall maintain fidelity insurance for its officers,
employees, and agents who handle or are responsible for handling funds of, or funds administered
by the Association. All such fidelity insurance shall name the Association as an obligee and shall
be not less than the estimated maximum of funds, including reserve funds in custody of the
Association at any time during the term of each policy, but in no event shall the aggregate amount
of insurance be less than three (3) months’ aggregate assessments plus reserves. The policy shall
contain waivers of any defense based upon the exclusion of persons serving without compensation
from any definition of “employee” or a similar expression.
16.5 Additional Policy Provisions. The insurance obtained by the Association for the
Common Elements shall contain the following provisions and limitations:
16.5.1 Each Owner is an insured person under the policy with respect to
liability arising out of the Owner’s interest in the Common Elements, or membership in the
Association.
16.5.2 The insurer waives its right to subrogation under the policy against any
Owner or member of the Owner’s household.
16.5.3 A policy shall not be voided nor shall recovery be conditioned on (a)
any act, omission, or neglect of an Owner when such act, omission, or neglect is not within the
Owner’s scope of authority on behalf of the Association, or (b) failure of the insured party to
comply with any warranty or condition with regard to any portion of the insured property over
which the insured party has no control.
16.5.4 The policy shall not provide for contribution by or assessment against
Mortgagees or become a lien on the Project superior to the lien of a first Mortgage.
16.5.5 If, at the time of a loss under the policy, there is other insurance in the
name of a Unit Owner covering the same risk covered by the policy, the Association’s policy
provides the primary insurance.
16.5.6 A provision that the insurer issuing the policy may not modify the
amount or the extent of the coverage of the policy or cancel or refuse to renew the policy unless
the insurer has complied with all applicable provisions of Chapter 48.18 RCW pertaining to
the cancellation or non-renewal of contracts of insurance.
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16.6 Insurance Trustee; Power of Attorney. The named insured under the policies
referred to in this Article 16 shall be the Association, as trustee for each of the Owners and
Mortgagees, if any, in accordance with their respective interests in the Project. 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. Subject to Section 16.7, insurance proceeds must first be disbursed for the repair
or restoration of damaged property, and Unit Owners and lienholders are not entitled to receive
payment of any portion of the proceeds unless there is a surplus of proceeds after the Project has
been completely repaired or restored, or the Project is terminated. All claims made against the
Association’s insurance policies must be approved and filed by the Board. 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 proceeds thereof, the negotiation of losses and execution
of release of liability, and the execution of all documents and the performance of all other acts
necessary to accomplish such purposes.
16.7 Use of Insurance Proceeds. Any portion of the Project for which insurance is
required under the Act or this Article 16 that is damaged or destroyed shall be repaired or replaced
promptly unless (a) the Project is terminated; (b) repair or replacement would be illegal under any
state or local health or safety statute ordinance; or (c) Owners holding at least eighty percent (80%)
of the votes in the Association, including every Owner of a Unit or an assigned Limited Common
Element which will not be rebuilt, vote not to rebuild. The cost of repair or replacement in excess
of the insurance proceeds available is a Common Expense. If all of the damage or destroyed
portions of the Project are not repaired or replaced, (i) the insurance proceeds attributable to the
damaged Common Elements shall be used to restore the damaged area to a condition compatible
with the remainder of the Project, and (ii) the remainder of the proceeds shall be distributed to all
Owners or lienholders, as their interests may appear, in proportion to the Common Expense
Liability of all Units. Notwithstanding the provisions of this Section, RCW 64.90.470 governs the
distribution of insurance proceeds if the Project is terminated.
16.8 Modification of Insurance Requirements. If certain coverage required by the Act or
this Article 16 is no longer available, other coverage not set forth herein becomes prudent business
practice, and/or the limits of liability and deductibles set forth herein will no longer provide the
Association with adequate protection, the Board shall modify the insurance coverage required by
this Article 16 at any time the Board deems such coverage to no longer be consistent with prudent
risk management practices utilized in other similar plat communities, taking into account then-
existing insurance market conditions and utilizing reasonable business judgment. In the event the
Board determines that such coverage is no longer available, then the Board shall promptly notify
all Owners of the same. Each Owner shall act reasonably with respect to any recommendation by
the Board to alter the insurance obligations set forth in this Article 16, including amending this
Declaration to provide adequate protection to the Association.
16.9 Owner Insurance.
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16.9.1 An insurance policy issued to the Association does not prevent an
Owner from obtaining insurance for such Owner’s own benefit.
ARTICLE 17
DAMAGE AND REPAIR OF PROPERTY
17.1 Initial Board Determination. In the event of damage to any portion of the Project
covered by the Association’s insurance policy, the Board shall promptly (but not later than sixty
(60) days after the date of damage), make the following determinations with respect thereto,
employing such advice as the Board deems advisable:
17.1.1 The nature and extent of the damage, together with an inventory of the
improvements and property directly affected thereby;
17.1.2 A reasonably reliable estimate of the cost to repair the damage, which
estimate shall, if reasonably practicable, be based upon two or more firm bids obtained from
responsible contractors;
17.1.3 The expected insurance proceeds, if any, to be available from
insurance covering the loss based on the amount paid or initially offered by the insurer;
17.1.4 The amount of the deductible to be paid by an Owner pursuant to
Section 16.2;
17.1.5 The amount of available reserves or other Association funds, although
the Board is not required to use any reserves or other Association funds; and
17.1.6 The amount, if any, by which the estimated cost of repair exceeds the
portion of the deductible to be paid by an Owner, expected insurance proceeds and available
reserves or other Association funds, and the amount of the Assessments that would have to be
made against each Unit if the excess cost were to be paid as a Common Expense and assessed
against all the Units in proportion to their Common Expense Liabilities.
17.2 Notice of Damage. The Board shall promptly, and in all events within sixty (60)
days after the date of damage, file a proof of loss statement with the insurance company if the loss
is covered by insurance, and abide by all terms and conditions of its insurance policies, unless the
Board determines it would not be in the best interest of the Association to file a proof of loss. The
Board shall then provide each Owner with a written notice describing the damage and summarizing
the initial Board determinations made under Section 17.1, unless the Board has determined that a
Special Assessment of the Owners will not be required to pay for the repair or that the repair should
not be made. If the damage affects a material portion of the Project, the Board shall also send the
notice to each Eligible Mortgagee; and if the damage affects a material portion of a Unit, the Board
shall send the notice to the first Mortgagee and any Eligible Mortgagee of that Unit. If the Board
fails to do so within the sixty (60) day period, any Owner or Mortgagee may make the
determinations required under Section 17.1 and give the notice required under this Section.
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17.3 Definitions: Damage, Substantial Damage, Repair, Emergency Work. As used in
this Article 17:
17.3.1 “Damage” means all kinds of damage, whether of slight degree or total
destruction due to an occurrence or an event and shall not include construction defects,
deterioration, or wear and tear.
17.3.2 “Emergency Work” means work that the Board deems reasonably
necessary to avoid further damage or substantial diminution in value to the improvements and
to protect the Owners from liability from the condition of the site.
17.3.3 “Repair” means restoring the improvements to substantially the
condition they were in before they were damaged, with each Unit and the Common Elements
having substantially the same boundaries as before. Modifications to conform to applicable
governmental rules and regulations or available means of construction may be made.
17.3.4 “Substantial Damage” means that the estimated Assessment
determined under Subsection 17.1.4 for any one Unit exceeds ten percent (10%) of the full,
fair market value of the Unit before the damage occurred, as determined by the then current
assessment for the purpose of real estate taxation.
17.4 Execution of Repairs.
17.4.1 Only the Board may carry out repair of the damage. If the cost of repair
exceeds the amount of the deductible to be paid by an Owner, expected insurance proceeds
and available reserves or other Association funds, the Board shall impose Assessments against
all Units in accordance with their Common Expense Liabilities in an aggregate amount
sufficient to pay the excess costs.
17.4.2 The Board shall have the authority to employ architects and engineers,
advertise for bids, let contracts to contractors and others, and take such other action as is
reasonably necessary to make the repairs. Contracts for the repair work shall be awarded when
the Board, by means of insurance proceeds and sufficient Assessments, has provided for paying
the cost. The Board may authorize the insurance carrier to make the repairs if the Board is
satisfied that the work will be done satisfactorily, and if such authorization does not contravene
any insurance trust agreement or requirement of law.
17.4.3 The Board may enter into a written agreement with a reputable
financial institution, trust, or escrow company providing that institution or company shall act
as an insurance trustee to adjust and settle any claim for casualty loss in excess of $50,000, or
collect the insurance proceeds and carry out the provisions of this Article.
17.5 Damage Not Substantial. If the damage is not substantial damage as defined by
Subsection 17.3.4, the Board shall proceed promptly to make the repairs unless the Board
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determines that a Special Assessment will be required or the repairs should not be made, in which
event the following provisions shall apply:
17.5.1 The Board shall call a special meeting of the Owners to decide whether
to repair the damage if, within fifteen (15) days after the notice required under Section 17.2
has been given, the Board has adopted a resolution requesting the special meeting be held.
17.5.2 Except for emergency work, no repairs shall be commenced until after
the fifteen (15)-day period and until after the conclusion of the special meeting if such a special
meeting is called within the fifteen (15) days.
17.5.3 A decision to not repair or rebuild may be made in accordance with
Section 16.7.
17.6 Substantial Damage. If the damage is substantial damage as defined by Section
17.3.4, the provisions of this Section shall apply.
17.6.1 The Board shall promptly, and in all events within sixty (60) days after
the date of damage, call a special meeting to consider repairing the damage. If the Board fails
to do so within the sixty (60)-day period, then notwithstanding the provisions of Section 10.7
and the Bylaws, any Owner or first Mortgagee of a Unit may call and conduct the meeting.
17.6.2 Except for emergency work, no repairs shall be commenced until the
conclusion of the special meeting.
17.6.3 At the special meeting, the following consent requirements will apply:
17.6.3.1 The Owners shall be deemed to have elected to repair the
damage unless the Owners of at least eighty percent (80%) of the total voting power of the
Project other than that held by the Declarant, including every Owner of a Unit which will
not be rebuilt and every Owner of a Unit to which a Limited Common Element which will
not be rebuilt is allocated, have given their written consent not to repair the damage, except
that if repair or rebuilding is in violation of any state or local health or safety statute or
ordinance, including but not limited the zoning or land use ordinances, this Subsection
17.6.3.1 shall not apply.
17.6.3.2 The unanimous consent of all Owners will be required to
elect to rebuild to a condition different from that existing before the damage.
17.6.3.3 In addition to the consent by the Owners specified above,
any election not to repair the damage or not to rebuild to the condition existing before the
damage will require the consent of first Mortgagees of Units to which at least fifty one
percent (51%) of the votes in the Association are allocated.
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17.6.3.4 Failure to conduct the special meeting provided for under
Section 17.6.1 within ninety (90) days after the date of damage shall be deemed a
unanimous decision to repair the damage in accordance with the original plan.
17.7 Effect of Decision Not to Repair. In the event of a decision under either Sections
17.5.3 or 17.6.3 not to repair the damage, the Board may nevertheless expend so much of the
insurance proceeds and common funds as the Board deems reasonably necessary for emergency
work (which emergency work may include but is not necessarily limited to removal of the damaged
improvements and clearing, filling, and grading the land), and the remaining funds, if any, and the
property shall thereafter be held and distributed as provided in Section 16.7.
ARTICLE 18
CONDEMNATION
18.1 Consequences of Condemnation. If at any time, any Unit or portion thereof, or the
Common Elements or Limited Common Elements or any portion thereof is made the subject matter
of any condemnation or eminent domain proceeding, or is otherwise sought to be acquired by any
condemning authority, the Board shall promptly give notice of the proceeding or proposed
acquisition to the Owners and each first Mortgagee, and the provisions of this Article 18 shall
apply.
18.2 Power of Attorney. Each Owner appoints the Association as attorney-in-fact for the
purpose of representing the Owners in condemnation proceedings and negotiations, settlements
and agreements with the condemning authority for acquisition of Common Elements or any part
thereof. The Board may appoint a trustee to act on behalf of the Owners in carrying out the
foregoing functions in lieu of the Association. Should the Association not act, based on their right
to act pursuant to this Section, the affected Owners may individually or jointly act on their own
behalf. Owners may represent themselves with regard to their Units and their assigned Limited
Common Elements.
18.3 Proceeds and Allocation of the Condemnation Award. All compensation, damages,
or other proceeds therefrom, the sum of which is hereinafter called the “Condemnation Award,”
shall be payable to the Association on behalf of the Owners. As soon as practicable the Board
shall, reasonably and in good faith, allocate the Condemnation Award between compensation,
damages, or other proceeds. After the Board determines the share of the Condemnation Award to
which each Owner is entitled, it shall then distribute the same to each Owner and its Mortgagees
and lienholders as their interests may appear. The Board shall apportion the Condemnation Award
from a partial or complete taking determined in the following manner:
18.3.1 Condemnation of a Unit. If a Unit is acquired by condemnation, or if
part of a Unit is acquired by condemnation leaving the Unit Owner with a remnant of a Unit
which may not practically or lawfully be used for any purpose permitted by this Declaration,
the award must compensate the Owner for the Owner’s Unit and its appurtenant interest in the
Common Elements, whether or not any Common Elements are acquired. The proceeds from
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the condemnation of a Unit shall be paid to the Owner or lienholder of the Unit as their interests
may appear. Upon acquisition, unless the decree otherwise provides, that Unit’s Allocated
Interests are automatically reallocated to the remaining Units in proportion to the respective
Allocated Interests of those Units before the taking, and the Association shall promptly
prepare, execute, and record an amendment to this Declaration reflecting the reallocations. Any
remnant of a Unit remaining after part of a Unit is taken under this Section is thereafter a
Common Element. Except as otherwise expressly provided in this Declaration, the rights, title,
interests, privileges, duties and obligations of an Owner and Mortgagee in, to or with respect
to a Unit not so taken or condemned (and in, to or with respect to the Association and the
Common Elements appurtenant to said Unit) shall continue in full force and effect as provided
in this Declaration.
18.3.2 Condemnation of Part of a Unit. Except as provided in Section 18.3.1,
if part of a Unit is acquired by condemnation, the award must compensate the Unit Owner for
the reduction in value of the Unit and its appurtenant interest in the Common Elements,
whether or not any Common Elements are acquired. The proceeds from the condemnation
awarded to the Unit Owner shall be paid to the Owner or lienholders of the Unit, as their
interests may appear. Upon acquisition, unless the decree otherwise provides, (a) the Allocated
Interests of the Unit partially acquired by condemnation are reduced in proportion to the
reduction in the size of the Unit and (b) the portion of the Allocated Interests divested from the
partially acquired Unit are automatically reallocated to that Unit and the remaining Units in
proportion to the respective Allocated Interests of those Units before the taking, with the
partially acquired Unit participating in the reallocation on the basis of its reduced Allocated
Interests.
18.3.3 Condemnation of Common Elements or Limited Common Elements.
If part of the Common Elements is acquired by condemnation, the portion of the award
attributable to the Common Elements taken shall be paid to the Owners based on their
respective interests in the Common Elements. Any portion of the award attributable to the
acquisition of a Limited Common Element must be allocated to the Owner of the Unit to which
that Limited Common Element was allocated at the time of the acquisition.
18.3.4 Severance Damages. The total amount allocated to severance damages
shall be apportioned to those Units which were not taken or condemned.
18.3.5 Consequential Damages. The amount allocated to consequential
damages and any other takings or injuries shall be apportioned as the Board determines in a
commercially reasonable and equitable manner under the circumstances.
18.3.6 Agreed Allocation. If an allocation of the Condemnation Award is
already established in negotiation, judicial decree, or otherwise, then in allocating the
Condemnation Award the Board shall employ such allocation to the extent it is relevant and
applicable.
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18.4 Partial versus Complete Taking. In the event that the entire Project is taken or
condemned or sold or otherwise disposed of in lieu of or in avoidance thereof, the common interest
community shall terminate. In the event that less than the entire Project is taken or condemned, or
sold or otherwise disposed of in lieu of or in avoidance thereof, the common interest community
shall not terminate, and the provisions of Article 18 shall take effect immediately upon such
acquisition by the condemning authority.
18.5 Reconstruction and Repair. Any reconstruction and repair necessitated by
condemnation shall be governed by the procedures specified in Article 17.
ARTICLE 19
MORTGAGEE PROTECTION
19.1 Priority of Mortgages. Notwithstanding all other provisions hereof and as provided
in the Act, the liens created under this Declaration upon any Unit for Assessments shall be subject
to tax liens on the Unit in favor of any assessing authority or special use district and be subject to
the rights of the secured party in the case of any indebtedness secured by Mortgages on any Unit
which were made in good faith and for value upon the Unit. Where such Mortgagee or other
purchaser of a Unit obtains possession of a Unit, such possessor and his successors and assigns,
shall not be liable, except as otherwise provided in this Declaration, for the share of the Common
Expenses or Assessments by the Association chargeable to such Unit which become due prior to
such possession, but will be liable for the Common Expenses and Assessments accruing after such
possession. Such unpaid share of Common Expenses or Assessments shall be deemed to be
Common Expenses collectible from all of the Owners including such possessor, his successor and
assigns.
19.2 Abandonment of Common Interest Community. Any action to terminate the legal
status of the Project as a common interest community after substantial destruction or condemnation
occurs or for other reasons must be approved by all Eligible Mortgagees.
19.3 Material Amendments to Declaration and Bylaws. The Association shall not make
any amendments to this Declaration or Bylaws of a material adverse nature to Mortgagees without
the prior approval of all Eligible Mortgagees. Material amendments include:
(a) Changing the voting rights of any Owner;
(b) Changing any restrictions on the use of the Units;
(c) Changing the priority of liens for assessments;
(d) Reallocating the undivided interest in the Common Elements;
(e) Encumbering the Common Elements;
(f) Expanding, contracting or terminating the Property;
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(g) Materially modifying the insurance requirements;
(h) Using any insurance or condemnation proceeds for anything other than the
repair of the Project or distribution to the Owners;
(i) Restricting the leasing of the Units; and
(j) Altering any provision that decreases the rights of any Mortgagee.
19.4 Implied Approval. A Mortgagee shall be deemed to have approved of any matter
for which this Declaration (including Sections 19.2 and 19.3) or the Act requires their approval
when the Mortgagee fails to submit a response to any written proposal for an amendment within
sixty (60) days after it receives proper notice of the proposal, provided the notice was delivered by
certified or registered mail, with a “Return Receipt” requested.
19.5 Effect of Declaration Amendments. Any provision of this Declaration conferring
rights upon Mortgagees which is inconsistent with any other provision of Declaration or the
Bylaws shall control over such other inconsistent provisions.
19.6 Written Notice. Where a Mortgagee of a Unit (or any insurer or guarantor of such
Mortgage) has filed a written request with the Board, for each such entity requesting notice, the
Board shall:
19.6.1 Notice of Cancellation and Material Change. Provide written notice of
any lapse, cancellation, failure to renew, reduction in coverage or limits, or other material
modification of any insurance policy required by Article 16.
19.6.2 Notice of Taking. Provide written notice of any condemnation or
casualty loss affecting a material portion of the Project or the Unit securing such Mortgage.
19.6.3 Notice of Owner’s Default. Provide written notice that an Owner of a
Unit has for more than sixty (60) days failed to meet any obligation under this Declaration.
19.6.4 Notice of Meetings. Provide written notice of any proposed action
which requires the consent of a specified percentage of Mortgagees.
19.7 Insurance Policy Terms. The property insurance policy required under Article 16
shall contain a standard Mortgagee clause which shall, if reasonably obtainable:
19.7.1 Reference to All Holders of Mortgages. Provide that any reference to
a Mortgagee in such policy means and include all holders of Mortgages secured by any Unit,
in their respective order and preference, whether or not named therein;
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19.7.2 Mortgagee’s Interest not to be Invalidated. 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;
19.7.3 Waiver of Certain Provisions. 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.
19.8 Inspection of Books; Audited Financial Statements. Owners, potential purchasers,
and holders, insurers, and guarantors of first Mortgages on any Unit (“Interested Parties”) shall
be entitled to inspect current copies of the Governing Documents and any other rules governing
the Project, and the Books and Records of the Association during normal business hours and under
other reasonable circumstances. Upon the written request of the Interested Parties, the Association
shall provide such parties with an audited financial statement for the preceding fiscal year if an
audited statement is available. The audited financial statement shall be available within one
hundred twenty (120) days of the Association’s fiscal year-end. The Interested Parties shall be
allowed to have an audited financial statement prepared for the preceding fiscal year at their
expense if such audited statement is not available.
ARTICLE 20
AMENDMENT OF DECLARATION, MAP, ARTICLES, OR BYLAWS
20.1 Procedures. Except in cases of amendments that may be executed by the Declarant
under this Declaration or the Act, this Declaration, the Map, the Articles, and the Bylaws may be
amended only by vote or agreement of the Owners, as specified in this Article 20, provided,
however, that no amendment of this Declaration shall effect an amendment of the Bylaws or
Articles without compliance with the provisions of such documents, and the Washington Nonprofit
Corporation Act, and that no amendment affecting the general plan of development or any other
right of Declarant herein contained may be effected without the express written consent of
Declarant or its successors and assigns, including, without limitation, amendment of this Section
20.1. An Owner may propose amendments to this Declaration or the Map, the Articles, or the
Bylaws to the Board. A majority of the members of the Board may cause a proposed amendment
to be submitted to the members of the Association for their consideration. If an amendment is
proposed by Owners with twenty percent (20%) or more of the votes in the Association, then,
irrespective of whether the Board concurs in the proposed amendment, it shall be submitted to the
members of the Association for their consideration at their next regular or special meeting for
which timely notice must be given. Amendments may be adopted vote of the members at a meeting
of the Association or in writing or by electronic transmission, as designated by the Board, of the
requisite number of persons entitled to vote, after notice has been given to all persons (including
first Mortgagees and Eligible Mortgagees) entitled to receive notices. Notice of a meeting at which
an amendment is to be considered shall include the text of the proposed amendment. Upon the
adoption of an amendment and the obtaining of any necessary consents of first Mortgagees and
Eligible Mortgagees as provided below, amendment to this Declaration or the Map will become
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effective when it is recorded or filed in the real property records in Thurston County. The
amendment shall be indexed in the name of the Project and shall contain a cross-reference by
recording number to this Declaration and each previously recorded amendment thereto. Such
amendments shall be prepared, executed, recorded, and certified on behalf of the Association by
any officer of the Association designated for that purpose or, in the absence of designation, by the
president of the Association. No action to challenge the validity of an amendment adopted by the
Association pursuant to this Article may be brought more than one year after the amendment is
recorded. An amendment to the Articles shall be effective upon filing the amendment with the
Secretary of State. An amendment to the Bylaws shall be effective upon adoption.
20.2 Percentages of Consent Required. Except as provided in Article 9 in connection
with the exercise of Development Rights by the Declarant or in Article 17 and Article 18 in the
case of damage or condemnation of the Project, or in the case of amendments made by the
Declarant pursuant to reserved Development Rights in this Declaration, the percentages of consent
of Owners and Mortgagees required for adoption of amendments to this Declaration, the Map, the
Articles, and the Bylaws are as follows:
20.2.1 Except as provided in Sections 20.4 and 20.5, or the Act, the consent
of Owners holding at least sixty seven percent (67%) of the votes in the Association shall be
required to amend any provisions of this Declaration, the Map, the Articles, or the Bylaws.
20.2.2 An amendment that creates or increases Development Rights or
Special Declarant Rights, increases the number of Units (other than an amendment creating
Units in a Subsequent Phase), changes the boundaries of any Unit, the Allocated Interests of a
Unit (except an amendment creating Units in a Subsequent Phase), or the uses to which any
Unit is restricted shall require the vote or agreement of the Owner of each Unit particularly
affected, the Declarant (if the Declarant owns a Unit or has the rights to exercise any
Development Rights or Special Declarant Rights) and the Owners having at least ninety
percent (90%) of the votes in the Association.
20.2.3 The consent of first Mortgagees of Units to which at least fifty one
percent (51%) of the votes of Units subject to Mortgages are allocated shall be required for
any amendment to this Declaration, Articles or Bylaws that is of a material adverse nature to
Mortgagees.
20.2.4 A Mortgagee who receives a written request to consent to an
amendment who does not deliver or post to the requesting party a negative response within
sixty (60) days shall be deemed to have consented to such request, provided the request was
delivered by certified or registered mail, return receipt requested.
20.2.5 If the Project has received a project approval from the VA, the
approval of the VA will be required for any amendment to this Declaration, the Articles, the
Bylaws, or the Map adopted prior to the Termination Date.
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20.2.6 An amendment to the provisions of this Declaration, the Map, the
Articles, or the Bylaws that prohibits, restricts, or affects the leasing of Units shall require the
vote of Owners holding at least ninety percent (90%) of the votes in the Association.
20.3 Limitations on Amendments. No amendment may restrict, eliminate, or otherwise
modify any Development Rights or Special Declarant Right provided in this Declaration without
the consent of the Declarant and any Mortgagee of record with a security interest in the
Development Rights or Special Declarant Right or in any real property subject thereto, excluding
Mortgagees of Units owned by persons other than the Declarant.
20.4 Amendments to Conform to Construction. Declarant, upon Declarant’s sole
signature, and as an attorney-in-fact for all Owners with an irrevocable power coupled with an
interest, may at any time, during the Declarant Control Period, file such amendments to this
Declaration and to the Map to conform data depicted therein to improvements as actually
constructed and to establish, vacate and relocate utility easements and access road easements.
20.5 Unilateral Amendment by Declarant. In addition to all other Special Declarant
Rights provided in this Declaration, Declarant may amend this Declaration and Map at any time
during the Declarant Control Period to the extent permitted by the Act or in order to comply with
the requirements of the Act, any Federal Agency or any department, bureau, board, commission
or agency of the United States or the State of Washington, or any other state in which the Units
are marketed and sold, or any corporation wholly owned, directly or indirectly, by the United
States or the State of Washington, or such other state, the approval of which entity is required in
order for it to insure, guarantee or provide financing in connection with development of the Project
and sale of Units. This Section 20.5 shall also apply to amendments to this Declaration and Map
to meet the requirements of institutions or lenders financing and/or title insuring the purchase of a
Unit from the Declarant. Prior to the Transition Meeting, no such amendment shall require notice
to or approval by any Unit Owner that is not the Declarant.
ARTICLE 21
TERMINATION OF PROJECT
21.1 Action Required. Except as provided in Article 17 and Article 18, the Project may
be terminated only by agreement of Owners of Units to which at least eighty percent (80%) of the
votes in the Association are allocated and with the consent of first Mortgagees of Units to which
at least sixty seven percent (67%) of the votes in the Association are allocated and in accordance
with the Act. A Mortgagee who receives a written request to consent to termination who does not
deliver or post to the requesting party a negative response within sixty (60) days shall be deemed
to have consented to such request, provided the request was delivered by certified or registered
mail, return receipt requested.
21.2 Act Governs. The provisions of the Act relating to termination of a common interest
community contained in RCW 64.90.290, as it may be amended, shall govern the termination of
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the Project, including, but not limited to, the disposition of property in the Project and the
distribution of proceeds from the sale of the Project.
ARTICLE 22
DISPUTE RESOLUTION
22.1 Dispute Resolution. Any and all claims, disputes and controversies by or between
Declarant and an Owner, collective of Owners, Board or Association, whether in contract or tort,
arising out of, or in any way related to the Association, the terms of this Declaration, the Act, the
Project, the Units, the purchase of any Units or other property at the Project, or otherwise related
to the dealings or relationship between Declarant and such other party (a “Dispute”) shall be
resolved by mediation or binding arbitration in accordance with this Article 22.
22.2 Mediation. Prior to conducting any arbitration, Declarant may, in its sole discretion,
require a Dispute to be submitted to non-binding mediation in the City of Seattle, State of
Washington. Declarant may exercise this option at any time. If Declarant elects to submit a Dispute
to non-binding mediation after a demand for arbitration has been filed, the parties agree to a stay
of the arbitration until the mediation concludes. The parties agree to cooperate to select an
acceptable mediator from any mediation organization or referral service in the City of Seattle,
State of Washington. If the parties are unable to agree upon a mediator, then the parties agree to
request the appointment of a mediator versed in disputes related to homeowners associations from
the nearest office of the American Arbitration Association. The cost of mediation shall be shared
equally by Declarant and the Owner; provided, however, should either party engage an attorney, a
consultant or an expert, the fees and expenses of such attorney, consultant or expert shall be paid
solely by the party engaging the same. If the Dispute is not resolved within thirty (30) days after
being submitted to non-binding mediation, the Dispute shall be submitted to and resolved by
binding arbitration in accordance with Section 22.3.
22.3 Binding Arbitration. Arbitration of a Dispute shall be conducted in the City of
Seattle, State of Washington, by the American Arbitration Association (“AAA”) unless the parties
agree to use a different arbitration service. If the parties agree to use any arbitration service other
than AAA, the arbitration shall be conducted pursuant to the applicable rules of the arbitration
service selected unless agreed otherwise. All administrative fees of the arbitration service and fees
of the arbitrator shall be allocated to the parties as provided in the rules of the applicable arbitration
service. The decision of the arbitrator shall be final and binding and may be entered as a judgment
in any State or Federal court of competent jurisdiction. If any party to a Dispute brings a successful
court action to compel arbitration under this Declaration, then the party compelling arbitration
shall be entitled to recover its reasonable attorneys’ fees and costs incurred in that court action.
The parties expressly agree that this Declaration and this arbitration provision involve and concern
interstate commerce and are governed by the provisions of the Federal Arbitration Act (9 U.S.C.
§ 1, et seq.) now in effect and as the same may from time to time be amended, to the exclusion of
any different or inconsistent state or local law, ordinance or judicial rule. The alternative dispute
resolution provisions under this Article 22 shall survive the end of the Declarant Control Period,
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the termination or expiration of this Declaration, and the dissolution, winding up, or other
termination of the Association.
22.4 WAIVER OF JURY TRIAL. DECLARANT, THE ASSOCIATION, THE
BOARD AND EACH OWNER, ON BEHALF OF THEMSELVES AND ANY PERSON OR
ENTITY ACTING BY, THROUGH OR UNDER THEM, KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY AGREE TO WAIVE THE RIGHT TO TRIAL BY JURY WITH
RESPECT TO ANY DISPUTE.
22.5 Exception to Arbitration. The dispute resolution provisions shall not apply to
actions by the Association in collecting assessments and/or enforcing the terms of this Declaration.
ARTICLE 23
GENERAL PROVISIONS
23.1 Declarant Liability. Neither the Association nor any Owner except the Declarant is
liable for the Declarant’s torts in connection with any part of the Project which the Declarant has
the responsibility to maintain. Otherwise, an action alleging a wrong done by the Association must
be brought against the Association and not against any Owner or any officer or director of the
Association. If the wrong by the Association occurred during any period of Declarant Control and
the Association gives the Declarant reasonable notice of and an opportunity to defend against the
action, the Declarant who then controlled the Association is liable to the Association or to any
Owner (a) for all tort losses not covered by insurance suffered by the Association or that Owner
and (b) for all costs which the Association would not have incurred but for a breach of contract,
other wrongful act, or omission by the Association. If the Declarant does not defend the action and
is determined to be liable to the Association under this Section, the Declarant is also liable for all
litigation expenses, including reasonable attorneys’ fees, incurred by the Association in such
defense. Any statute of limitations affecting the Association’s right of action under this Section is
tolled until the period of Declarant Control terminates. An Owner is not precluded from bringing
an action contemplated by this Section because he or she is a Unit Owner or a member or officer
of the Association.
23.2 Indemnification of Directors, Officers, Employees and Agents. The Association
shall indemnify Declarant, and any director, officer, employee or agent, who was or is a party or
is threatened to be made a party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative (other than an action by the Association)
by reason of the fact that such person is or was a director, officer, employee or agent of the
Association or is or was serving at the request of the Association as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other enterprise, against
expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred by said person in connection with such suit, action or proceeding if such
person acted in good faith and in a manner that such person reasonably believed to be in, or not
opposed to, the best interest of the Association, and, with respect to any criminal action or
proceedings, had no reasonable cause to believe that such person’s conduct was unlawful. This
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indemnification shall apply whether or not such person holds such position at the time such
expenses or liabilities are incurred. The termination of any action, suit or proceeding by judgment,
order, settlement, conviction, or with a plea of nolo contendere or its equivalent, shall not of itself
create a presumption that a person did not act in good faith and in a manner which such person
reasonably believed to be in, or not opposed to, the best interest of the Association, and, with
respect to any criminal action or proceedings, had reasonable cause to believe that such person’s
conduct was unlawful. Payment under this clause may be made during the pendency of such claim,
action, suit or proceeding as and when incurred, subject only to the right of the Association to
reimbursement of such payment from such person, should it be proven at a later time that such
person had no right to such payments. All persons who are ultimately held liable for their actions
on behalf of the Association as a director, officer, employee or agent shall have a right of
contribution over and against all other directors, officers, employees or agents and members of the
Association who participated with or benefited from the acts which created said liability. Nothing
contained in this Section 23.2 shall, however, be deemed to obligate the Association to indemnify
any Owner of a Unit who is or has been a Board member or officer of the Association with respect
to any duties or obligations assumed or liabilities incurred by him under and by virtue of this
Declaration as an Owner of a Unit covered thereby and not as a Board member or officer of the
Association.
23.3 No Personal Liability. So long as a Board member, Declarant Board member,
Association committee member, Association officer, Association agent, or Declarant exercising
the powers of the Board, has acted in good faith, without willful or intentional misconduct, upon
the basis of such information as may be actually possessed by such person, no such person shall
be personally liable to any Owner, or other party, including the Association, for any damage, loss
or prejudice suffered or claimed on account of any act, omission, error, negligence, any
discretionary decision, or failure to make a discretionary decision, by such person in such person’s
official capacity; PROVIDED, that this Section 23.3 shall not apply where the consequences of
such act, omission, error or negligence are covered by insurance or bonds obtained by the Board
pursuant to this Declaration.
23.4 Limitation of Liability for Utility Failure, etc. Except to the extent covered by
insurance obtained by the Board, neither the Association, the Board, the Manager, nor the
Declarant shall be liable for: the failure of any utility or other service to be obtained and paid for
by the Board; or for injury or damage to person or property caused by the elements, or resulting
from electricity, water, rain, dust, or sand which may leak or flow from outside or from any parts
of the Units, or from any of their pipes, drains, conduits, appliances, or equipment, or from any
other place; or for inconvenience or discomfort resulting from any action taken to comply with
any law, ordinance, or orders of a governmental authority. No diminution or abatement of
Assessments shall be claimed or allowed for any such utility or service failure, or for such injury
or damage, or for such inconvenience or discomfort.
23.5 Enforcement; Attorneys’ Fees. The Association and the Owners and any Mortgagee
holding an interest on a Unit shall have the right to enforce all of the covenants, conditions,
restrictions, reservations, easements, liens and charges now or hereinafter imposed by any of the
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provisions of this Declaration as may appertain specifically to such parties or Owners by any
proceeding at law or in equity. Failure by either the Association or by any Owner or Mortgagee to
enforce any covenant, condition or restriction herein contained shall in no event be deemed a
waiver of their right to do so thereafter. In the event suit or action is commenced to enforce the
terms and provisions of this Declaration (including without limitations, for the collection of
assessments), the prevailing party shall be entitled to its actual administrative costs incurred
because of a matter or event which is the subject of the suit or action, attorneys’ fees and costs in
such suit or action to be fixed by the trial court, and in the event of an appeal, the cost of the appeal,
together with reasonable attorneys’ fees, to be set by the appellate court. In addition thereto, the
Association shall be entitled to its reasonable attorneys’ fees and costs incurred in any enforcement
activity or to collect delinquent assessments, together with the Association’s actual administrative
costs, whether or not suit or action is filed.
23.6 Assignment by Declarant. The Declarant reserves the right to assign, transfer, sell,
lease, or rent all or a portion of the property then owned by it and reserves the right to assign all
or any of its rights, duties, and obligations created under this Declaration.
23.7 Conveyance by Owners; Notice Required. An Owner’s right to convey their Unit
shall not be subject to any right of approval, disapproval, first refusal, or similar restriction by the
Association or the Board, or anyone acting on their behalf. Except in the case of a sale when
delivery of a public offering statement is required, or otherwise exempt under the Act, an Owner
must furnish a resale certificate in compliance with the Act to a purchaser before execution of any
contract for sale of a Unit, or otherwise before conveyance. The Owner shall provide notice to the
Board to allow the Board sufficient time to furnish the resale certificate within the time required
by the Act. Upon execution of any contract for sale of a Unit, the Owner shall provide a notice to
the Board specifying (a) the Unit being sold; (b) the name and address of the purchaser, of the
closing agent, and of the title insurance company insuring the purchaser’s interest; and (c) the
estimated closing date. The Board shall have the right to notify the purchaser, the title insurance
company, and the closing agent of the amount of unpaid Assessments and the charges outstanding
against the Unit, whether or not such information was requested. Promptly upon conveyance of a
Unit, the new Owner shall notify the Association of the date of the conveyance, and the new
Owner’s name and address. The Association shall notify each insurance company that has issued
an insurance policy under Article 16 of the name and address of the new Owner and request that
the new Owner be made a named insured under such policy.
23.8 Notices. Unless provided otherwise in this Declaration, all notices given under the
provisions of the Governing Documents 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 upon
being deposited in the United States mail, first class, postage prepaid, addressed to the person
entitled to such notice at the most recent address known to the Board. Notice to the Owner of any
Unit shall be sufficient if mailed to the Unit if no other mailing address has been given to the
Board. Mailing addresses may be changed by notice in writing to the Board. Notices to the Board
shall be given to the Declarant until the Termination Date, and thereafter shall be given to the
president or secretary of the Association.
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23.9 Severability. The provisions of this Declaration shall be independent and severable,
and the unenforceability or invalidation of any one provision shall not affect the enforceability of
any other provision, if the remaining provision or provisions comply with the Act, and the same
shall remain in full force and effect.
23.10 Duration. The covenants, conditions and restrictions of this Declaration, as they
may be amended from time to time, shall run with and bind the land for a term of fifty (50) years
from the date of this Declaration being recorded, after which time they shall be automatically
extended for successive periods of twenty (20) years, unless rescinded by a vote of at least eighty
percent (80%) of the Owners and eighty percent (80%) of the first Mortgagees.
23.11 Reference to Map. The Map was recorded with the Thurston County Recorder at
the time of recording this Declaration under the recording number shown on the cover sheet of this
Declaration.
23.12 Effective Date. This Declaration shall take effect upon recording.
23.13 Release of Right of Control. Declarant may terminate the Declarant Control Period
in writing at any time by notice to the Association.
[Signature page follows]
S-1
4935-3980-0576.1
IN WITNESS WHEREOF, Declarant has executed this instrument this _____ day of
December, 2024.
DECLARANT: LGI HOMES - WASHINGTON, LLC,
a Washington limited liability company
By: ___________________________________
Name: ___________________________________
Its: ___________________________________
STATE OF WASHINGTON )
) ss.
COUNTY OF ___________ )
I certify that I know or have satisfactory evidence ____________________ is the person
who appeared before me, and said person acknowledged that he/she signed this instrument, on
oath stated that he/she was authorized to execute the instrument and acknowledged it as the
_______________ of LGI HOMES – WASHINGTON, LLC, a Washington limited liability
company, to be the free and voluntary act of such party for the uses and purposes mentioned in the
instrument.
Dated: _____________________
Signature:
Name (Print):
NOTARY PUBLIC in and for the State
of Washington, residing at
My appointment expires:
Exhibit A-1
4935-3980-0576.1
EXHIBIT A
Legal Description of the Project
The Land referred to herein below is situated in the County of Thurston, State of Washington, and
is described as follows:
PARCEL A:
LOT 4 IN BLOCK 7 OF MCKENNA IRRIGATED TRACTS, ACCORDING TO PLAT
RECORDED IN VOLUME 9 OF PLATS AT PAGE(S) 43 AND 44, IN THURSTON COUNTY,
WASHINGTON.
PARCEL B:
LOT 5 IN BLOCK 7 OF MCKENNA IRRIGATED TRACTS, AS RECORDED IN VOLUME 9
OF PLATS, PAGES 43 AND 44, IN THURSTON COUNTY, WASHINGTON.
EXCEPT THE SOUTHWESTERLY 245.18 FEET AS MEASURED AT RIGHT ANGLES TO
THE SOUTHWEST LINE THEREOF.