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20070235 CCR's 12032013 � Return Address City of Yelm Tami Merriman 105 Yelm Avenue West Yelm,WA 98597 Document title(s) (or transactions contained therein): 1. Declaration of Protective Covenants, Conditions, and Restrictions. Reference Number(s) of Documents assigned or released: (on page of documents(s)) Grantor(s) (Last name, first name, middle initial) 1. Fairway Estates 2. Mountain Terrace Builders, LLC 3. Kempinski, Michael, Manager Grantee(s) (Last name, first name, middle initial) 1. City of Yelm 2. Legal Description ( abbreviated: i.e. lot, block, plat or section, township, range) NW '/4SE '/4S24, T17N, R1E Assessors Property Tax Parcel/Account Number: 21724420503 4370983 Pages: 39 12/03/2013 04:�� PM Covenant Thurston County Washington CITY OF YELM �III h'i�:� I�1� I��Fh't�INr���E�:�1«��I�'i,�h�'��� �I II I DECLARATION OF PROTECTIVE COVENANTS, CONDITION, AND RESTRICTIONS FOR FAIRWAY ESTATES GRANTOR: Fairway Estates, LLC. A Washington Limited Liability Company Grantee: Fairway Estates Homeowner's Association Lot 3 of Short Subdivision No. SS-0175 as recorded September 11, 1975 under Auditor's File No. 946434. Together with that portion set forth in judgment quieting title filed August 30th, 2007 under Thurston County case no. 07-2-01251-3, described as follows: The south 300.00 Feet of the Southeast Quarter of the Northeast Quarter of the Southeast Quarter of Section 24, Township 17 North, Range 1 East of the Willamette Meridian, Lying west of the west line of the City of Yelm Plat of Vista Green as Recorded November 17, 2006 under Auditor's file no. 3881244; except the South 30.00 Feet for the City of Yelm road known as Longmire Street SE; In Thurston County Washington The Declarant herein as the owner in fee of the real property legally described in this Declaration, hereby covenants, agrees, and declares, that all of the properties and housing units constructed on the properties are and will be held, sold and conveyed subject to this Declaration which is made for the purpose for enhancing and protecting the value, the desirability and attractiveness of the properties for the benefit of all the properties and their ° owners. The covenants, restrictions, and reservations, and conditions, contained in this Declaration shall run with the land as easements and equitable servitudes and shall be binding upon the properties and each portion thereof and all persons owning, purchasing, leasing, subleasing or occupying any lot one the properties and upon their respective heirs, successors and assigns. ARTICLE ONE: DEFINITIONS For purposes of the Declaration, Articles of Incorporation and Bylaws of the Association certain words and phrases have particular meanings, which are as follows: Section 1.1 "ACC "shall mean the Architectural Control Committee, as described in this Agreement Section 1.2 "Articles" shall mean the Association's articles of incorporation and any amendments. Section 1.3 "Association" shall mean the Homeowner's Association formed as a nonprofit corporation for the purpose of administering this Declaration. Section 1.4 "Board" or"Board of Directors" shall mean the Board of Directors of the Association. Section 1.5 "Bylaws" shall mean the Association's Bylaws and any amendments. Section 1.6 "Common Areas" shall include but nor be limited to Tracts A and B, as delineated on the plat of Fairway Estates. Common areas shall also mean all the property, both real and persona, in which the Association has been granted an easement of right of control by any written instrument including this Declaration or by delineation and Declaration of the same of the plat map recorded under the above referenced recording number. Upon the subsequent approval and recording of Fairway Estates, the Common areas described in Tracts A and B shall also be Common areas for Fairway Estates. Any common areas which may be described as sub in the Plats for Fairway Estates shall also be considered to be within the definition of Common Areas as described herein, once such Plats are approved and are recorded. Section 1.7 "Declaration" shall mean this Declaration of Protective Covenants, Conditions and Restrictions. Section 1.8 "Declarant" shall mean and refer to Fairway Estates, LLC. A Washington Limited Liability Company. Section 1.9 "Developer" The term "Developer" shall mean and refer to Declarant. However, the term "Developer" shall also include any entity which purchases at least five (5) lots from Declarant, within Fairway Estates for the purpose of construction residences thereon. Until Such time as Declarant or any other entity purchasing multiple lots, has sold all the lots by that party, then such party shall jointly exercise all rights reserved to a Developer as set forth in this Declaration. At any time as such party has sold or conveyed all the lots held by that entity then that party shall no longer be considered a Developer or a Declarant. Section 1.10 "Development Period" shall mean the period of time from the date of recording of this Declaration until 180 days after the date upon which 100%of the lots in Fairway Estates have been sold by the Developer or any shorter period, as determined by the Declarant. A partial delegation of authority by the Declarant of any of the management duties described in this Declaration shall not terminate the development period. In the event any loans with respect to any of the lots are insured through the Federal Housing Administration (FHA), the Veteran's Administration (VA), the Federal National Mortgage Association (FNMA), and the Federal Home Loan Mortgage Corporation, then in that event, the Development Period shall terminate at such time as 75%of all of the lots in each respective Phase have been closed and sold to other than Developer. Section 1.11 "Housing Unit" shall mean the building occupying a Lot. Section 1.12 "Institutional First Mortgagee" or Mortgagee" shall mean a blank or savings and loan association or established mortgage company, or other entity chartered under federal or state laws, any corporation or insurance company or state or federal agency which holds a first mortgage or deed of trust against a Lot or Housing Unit thereon. Section 1.13 "Lot" or "lots" shall refer to one or more of the residential buildings lots located in the Real Property described herein Fairway Estates. Section 1.14 "Member" shall mean every person or entity that holds a membership in the Association. Section 1.15 "Mortgage" shall mean a mortgage or deed or trust encumbering a Lot or other portion of the Properties. Section 1.16 "Owner" shall mean the recorded owner of a Lot, whether on or more persons or entities, but excluding those having such interest merely as security. A real estate contract purchase shall be deemed the owner. Section 1.17 "Person shall mean a natural person, a corporation, a partnership, trustee or other legal entity. Section 1.18 "Phase" shall mean and refer to each portion of the development of Fairway Estates. Section 1.19 "Real Property" that is the subject of this Declaration shall include Fairway Estates. Lots 1 through Lot 8 of Fairway Estates. The term "Real Property" shall also include and shall also apply to Fairway Estates subject to and upon the subsequent approval and recording of the Plats of Fairway Estates. Section 1.20 "Sale" or"Sold" shall mean the date upon which ownership of a Lot is transferred from an Owner to another person or entity by recordation of an instrument of transfer such as a deed or real estate contract. ARTICLE TWO: MANAGEMENT OF COMMON AREAS AND ENFORCEMENT OF DECLARATION Section 2.1 Development Period. During the development period of Declarant, Fairway Estates, LLC. A Washington Limited Liability Company shall appoint the sole director of the Association. The Declarant may also appoint members of the Association to other committees or positions in the Association as the Declarant deems appropriate to serve at the Declarant's discretion, and may assign such responsibilities, privileges, and duties to the Members as the Declarant determines for such time as the Declarant determines. Any member appointed by the Declarant during the development period may be dismissed at the Declarant's discretion. The Declarant shall also appoint members to the Architectural Control Committee. At such time as the Declarant has sold and conveyed all lots then the Declarant may resign as a director of the Association and from any other committees for the duration of the development. The Declarant for the duration of the development period shall be entitled to appoint a director to the association as well as a Member to the Architectural Control Committee. Section 2.2 Purpose of Development Period. The Developer's control of the Association during the Development Period is established in order to insure that the Properties and the Association will be adequately administered in the initial phases of development, ensure an orderly transition of Association operations, and to facilitate the Developer's completion of construction of Housing Units. Section 2.3 Authority of Association After Development Period. At the expiration of Declarant's management authority the Association shall have the authority and obligation to manage and administer the Common Areas and to enforce this Declaration. Such authority shall include all authority provided for the Association's Articles, Bylaws, rules and regulation and the Declaration. The Association shall also have the authority and obligation to manage and administer the activities of the ACC in its responsibilities as described in this agreement. Section 2.4 Delegation of Authority. The Board of Directors or the Developer may delagate any of its managerial duties, powers or functions to any person, firm, or corporation. The Board and the Developer shall not be liable for any breach or duty, negligence, omission, intentional act or improper exercise by a person who is delegated any duty, power or function by the Board of Directors or the Developer. Section 2.5 Notice to the Owner. Not less than ten (10) nor more than (30) days prior to the termination of the development, the Declarant or any Developer who then constitute the Board, shall give written notice of termination of the Development Period to the Owner of each lot. Said notice shall specify the date when the development period will terminate and that at such time a meeting of the members shall be called in accordance with the Bylaws which members shall then elect directors in accordance with the terms and provisions of the Articles of Incorporation and Bylaws of this Declaration. Article Three: Membership Section 3.1 Every person or entity who is an owner of any Lot within Fairway Estates agrees to be a member of the Association by acceptance of a deed for such lot. Membership may not be separation from ownership of any Lot. All members shall have rights and duties as specified in this Declaration, and in the Articles and Bylaws of the Association. ARTICLE FOUR: VOTING RIGHTS Section 4.1 Members shall be entitled to one vote for each Lot owned. No more than one vote shall be cast with respect to any Lot. The voting rights of any Member may be suspended as provided in the Declaration, or the Articles or Bylaws of the Association. Members' votes may be solicited and tabulated by mail or facsimile. ARTICLE FIVE: COMMON AREAS Section 5.1 Conveyance of Common Areas: Upon recording of this Declaration, and under the terms of the Plat, all of the right,title and ownership is hereby dedicated and conveyed to the Fairway Estates Homeowners Association; reserving, however, to the Declarant for the benefit of the Declarant, its successors and assigns, those certain rights of use, ingress, egress, and occupation and control, indicated elsewhere in this Declaration for the duration of the development, at which time this reservation shall cease and then the Fairway Estates Homeowner Association shall have complete control and authority with respect to those Common Areas as more particularly set forth in this Declaration. These tracts and other properties and improvements as described herein are referred to as the "Common Areas" together with any other easements which are defined as being "Common Areas" under the terms of this Declaration. Upon recording of the Plats for Fairway Estates, any additional common areas shown on such Plats shall be deemed to be dedicated and conveyed to the Fairway Estates Homeowner's Association subject to the same reservations described in above as to the Common Areas. � , Section 5.2 Property Rights in Common Areas: The Association shall have the right and obligation to maintain improvements (including fences and sound barriers), vegetation, signage and utilities in and on all common areas subject to any restrictions delineated on the plat of the properties. The Association shall have the exclusive right to use and manage the Common Areas in a manner consistent with the Plat, this Declaration, the Articles and the Bylaws of the Association. ARTICLE SIX: MAINTENANCE AND COMMON EXPENSES Section 6.1 Standard of Maintenance—Common Areas and Streets. The Association shall maintain the Common Areas in a manner consistent with good building, construction, maintenance and nursery practices, and in compliance with all applicable codes and regulations. The common areas shall include but not be limited as defined below together with all easements which are for the benefit of the Homeowner's Association or for the benefit of all Lot Owners of Fairway Estates. These Common Areas include but are not limited to the following: 6.1.1 The park delineated on the Plat of Fairway Estates 6.1.2 The private storm drainage area delineated on the Plat of Fairway Estates. 6.1.3 Any entry, perimeter fencing, all berms, and any monument improvements thereon which may be constructed by the Declarant. 6.1.4. All easements which have been established for the benefit of Lot Owners or the Association or which may be delineated on the Plat of Fairway Estates, where and to the extent that such easements are reserved for the benefit of all Lot owners as well as easements which are reserved for the benefit of the Association for the purpose of the installation, maintenance, and repairing of any improvements or any other installations constructed within said easement areas. 6.1.5 All streets and private roads which are not dedicated to the public which have . been established for the benefit of Lot Owners or the Association. Section 6.2 Standard of Maintenance—Lots and Planting Strips. Each Lot Owner hereby covenants and agrees to maintain his respective Lot (including as a part of said Lot the Planting Strip located between the street and the sidewalk adjacent to the Owner's respective Lot, if any) and the Housing Unit located thereon in the same condition as a reasonably prudent homeowner would maintain his own home so that the Real Property will reflect a high pride of ownership. Each Lot Owner shall perform at the Lot Owner's expense the maintenance and upkeep of any drainage swales, underground drain lines, catch basins and decommissioned wells installed on their lot. Section 6.3 Remedies for Failure to Maintain. If any Lot Owner shall fail to conduct maintenance on his Lot or the exterior of the Housing Unit located thereon, or fails to maintain the lot and exterior of the Housing Unit in the same condition as reasonably prudent homeowner, or in a manner which preserves the drainage for the other Lots, the Association shall notify the Lot Owner in writing of the maintenance required. If the maintenance is not performed within 30 days of the date notice is delivered, the Association shall have the right to provide such maintenance, and to levy an assessment against the non-performing Lot Owner and its Lot for the cost of providing the maintenance. The assessment shall constitute a lien against the Lot owned by the non-performing Lot Owner and may be collected and foreclosed in the same manner as any other delinquent monthly or special assessment. The Association shall have all remedies for collection as provided in this Declaration. In the event that emergency repairs are needed to correct a condition on a Lot which poses a substantial risk of injury or significant property damage to others, the Association may immediately perform such repairs as may be necessary after the Association has attempted to give notice to the Lot Owner of the repairs necessary. Such notice in emergency circumstances shall be sufficient if attempted orally or in writing immediately prior to the Association's undertaking the necessary repairs. Emergency repairs performed by the Association, it not paid for by the Lot Owner, may be collected by the Association in the manner provided for herein notwithstanding the failure of the Association to give the Lot Owner the thirty (30) day notice. Section 6.4 Common Expenses. The Association shall perform such work as is necessary to carry out the duties described in this Declaration, and shall delegate the responsibility for management and supervision of such work to the board, the ACC or to a manager or agent hired by the Board for the purpose of such management and supervision. Expenses for such work shall be paid by the Association for the benefit of all Low Owners, and shall be referred to as Common Expenses. The Common Expenses shall be paid by the Association from funds collected from assessments paid by Lot Owners. The Common Expenses shall include, but shall not be limited to the following: 6.4.1 The cost of maintaining all required insurance coverage and fidelity bonds on any common Areas, and for directors and officers of the Association and the ACC. 6.4.2 The cost of maintaining, repairing, and replacing all Common Area improvements, including but not limited to signs, lights, perimeter fences, walls, open space tracts, and berms, plantings, landscaping, and all portions of the storm water drainage systems and sanitary sewer system which are located within individual lots or within the Common Areas, 6.4.3 The cost of maintaining the replacing streets, private roads and streetlights (if not maintained by applicable governmental jurisdiction); 6.4.4 Payment of any real estate taxes assessed against the Common Areas; 6.4.5 Any other expenses which shall be designed as a Common Expense in the Declaration, in its Exhibits, or from time to time by the association. Section 6.5 Extraordinary Use Expenses. In the event that one or more Lot Owners should by their use of the Common Areas cause it to be subjected to other than reasonable wear and tear or by their actions damage those common areas or any improvements located thereon or therein,then the individual subjecting the Common Area to such use shall have the obligation to repair such damage upon demand by the Association and to restore such Common Areas to the condition that existed prior to such use or action and all expenses therefore shall be paid by such individual. Section 6.6 Owners' Easement of Enjoyment. Each Owner shall have a right in an easement of enjoyment n and to the Common Areas which shall be appurtenant in and to and shall pass with title (or, if applicable, with the equitable title held by real estate contract purchaser)to every lot subject to the following provisions. 6.6.1 The right of the Declarant or the Association to establish use and operation standards for all Common Areas to be binding upon all Association members along with enforcement standards. 6.6.2 The right of the Declarant during the Development Period (including any Developer during the development period) or the Association after the development period to suspend an Owner's right to vote and to use. 6.6.3 The right of the Declarant (during the Development Period) or the Association (after the Development Period)to dedicate or transfer all or any part of the Common Areas (including private roads and streets)to any public agency, authority or utility for such purposes and subject to such conditions as the Declarant or Members as applicable may deem appropriate. After the Development Period, no such dedication or transfer shall be effective unless the instrument agreeing to such dedication or transfer is signed by Owners of at least seventy five percent 75%of the Lots has been recorded. 6.6.4 Any owner may delegate their right of enjoyment to the common areas and facilities to the members of their family,their tenants, or their guests, subject to the limitations set forth above. Section 6.7 Insurance, Nothing shall be done or kept in any common areas which will increase the rate of insurance on the Common Areas or other lots or improvements without the prior written consent of the Board. Nothing shall be kept in any Common Areas which will result in cancellation of insurance on any part of the common areas or which would be in violation of any laws or ordinances. Section 6.8 Alteration of Common Areas and Common Maintenance Areas. Nothing shall be altered or constructed in or removed from any common maintenance area or common Area except upon prior written consent of the Board. There shall be no construction of any kind with the common area except that communities improvements may be constructed in two-thirds of the Members of the Association authorize (1)the construction of such improvements, and (2) assessment for such improvements. Also, any such improvements would be subject to the acquisition of tall required permits from governmental agencies. This Section shall not limit or prohibit Declarant (and no Member's consent shall be necessary), during the Development Period, from constructing or altering any such improvements to any common area or any common maintenance area, which Declarant in Declarant's sole discretion, deems for the benefit and enhancement of said areas in the Association in general. Section 6.9 Dumping in Common Areas, Common Maintenance Areas, or Wetland and Buffer Areas. No trash, construction debris, or waste, plant or grass clippings or other debris of any kind, nor any hazardous waste, (as defined in federal, state, or local law regulation) shall be dumped, deposited or placed on any Common Areas, common maintenance areas or easements. The Declarant (during the Development Period) and the Board thereafter, shall retain the rights for enforcement and initiation of penalties for violations of this policy. Section 6.10 Landscaping and Fencing. No Permanent structures or landscaping of any kind, including fences, walls or shrubs, may be built or placed within any right of way easements or other easements as delegated on the Platt of Fairway Estates except as deemed appropriate by the Board. This prohibitation shall not apply to the landscaping and any improvements in the common maintenance areas installed by the Declarant, nor shall this Section prohibit the . _ _ Association from installing additional improvements or landscaping within the designed Common Areas or common maintenance areas, nor shall this section prohibit the installation of fences as may be otherwise allowed in this Declaration, nor shall this section prohibit the installation of landscaping on private Lot areas encumbered by utility easements not otherwise restricted in this Declaration, or on the Plat. Also, this prohibition shall not apply to landscaping of front outside yards of lots extending to the edge of the curb or sidewalk and the public right of way. Section 6.11 Management Each Owner expressly covenants that the Declarant (during the Development Period) and the Board thereafter, may delegate all or any portion of management authority to a managing agent, manager of officer of the Association and may enter into such management contracts or other services contracts to provide for the maintenance of the common areas and common maintenance areas and any portion thereof. Any management agreement or employment agreement for maintenance or management may be terminable by the Association without cause upon not more than ninety (90) days written notice thereof. (However, this shall not be applicable if the management agreement provides for any other specific termination.) The term of any such agreement shall not exceed one year, renewable by agreement of the parties for successive periods of up to three years each. Each owner is bound to observe the terms and conditions of any management agreement or employment contract, all of which shall be made available for inspection by any Owner upon request. Any fees or salary applicable to any such management employment or service agreement shall be assessed to each owner. Section 6.12 Sanctions for Failure to Maintain Drainage Facilities. In the event the Fairway Estates Homeowner's Association ("Association") in the judgment of The City of Yelm fails to maintain drainage facilities within the Plat, or if the Association or successors willfully or accidentally reduce the capacity of the drainage system or render any part of the drainage system unusable,the Association or successors agree to the following remedy: After 30 days notice by registered mail to the Association or successors, the applicable municipality will assess financial sanctions and/or initiate enforcement proceedings. In the event the county determines the lack of maintenance has resulted in a situation of imminent danger to life, limb, or property,the county will correct the problem as necessary to restore the full design capacity of the drainage system. In this event, the county will bill the Owners or the facitity for all costs associated with such work to include engineering, administration, legal, fees, construction, equipment and personnel, Costs or fees incurred by the county, including attorney's fees and expert's fees should legal action be required to cotlect such payments, shall be borne by the Association or successors. ARTICLE SEVEN ASSESSMENTS Service 7.1 Covenants for Maintenance Assessments 7.1.1 Declarant shall not be liable for the payment of any duties-or assessments for any Lot owned by it, and the Board and the Association shall make no claim against the Declarant for the payment of such dues and assessments. 7.1.2 The annual or other regular and special assessments,together with interest, costs and reasonable attorney's fees, shall be a charge and a continuing lien upon the Lot against which each such assessment is made. Such lien may be foreclosed by the Association in like manner as a Mortgage on real property, or as otherwise allowed by law. 7.1.3 Each assessment,together with interest, costs and reasonable attorney's fees, shall also be the personal obligation of the person who was the Owner of the lot assessed at the time of assessment fell due. The personal obligation shall not pass to the Owner's successor's in-interest unless expressly assumed by them. The new Owner shall be personally liable for assessments which become due on and after the date of sale of transfer. 7.1.4 During all Applicable Development Periods and until all Lots are sold by the Declarant, no Lot owned by a Declarant shall be subject to any annual or other assessments. Section 7.2 Purpose of Assessments. The assessments levied by the Association shall be used exclusively for the purpose of promoting the recreation, health, safety and welfare of the residents of the Property, including the improvement, repair and maintenance of the Common areas and the services and facilities related to the use and enjoyment of said areas, for the payment of insurance premiums on the Common Areas, and for the maintenance of other areas as provided for in the this Declaration. Section 7.3 Board to Fix Annual or Regular Assessment. The Board of Directors shall fix the regular or annual assessment at least thirty (30) days prior to the commencement of the annual or regular assessment period. Written notice of the annual or regular assessment shall be sent to every owner. In the event the Board fails to fix an annual or regular assessment for the prior year shall automatically be continued until such time as the Board acts. The annual or regular assessment established for the prior year shall automatically be continued until such time as the Board acts. The annual or regular assessments shall be sufficient to meet the obligation imposed by the Declaration and any supplementary declarations, and shall be sufficient to establish an adequate reserve fund for the maintenance, repair and replacement of those Common Areas which require such actions on a periodic basis. That in the event there is any increase in the annual or regular assessment of more than ten percent (10%) of the annual or regular assessment for the prior assessment period,then it must be approved as by the Owners of at least sixty (60%) of the Lot Owners eligible to vote. Section 7.4 Rate of Assessment. Both annually or regular and special assessments shall be fixed at a uniform rate for all Lots. Section 7.5 Street Repair, Maintenance, and Cleaning. All Developers or Owners shall use due diligence to avoid placing unnecessary dirt, debris, and any other material washing onto or coming on the road as a result of any construction activities and each Developer or Owner shall at all times remain responsible for keeping the road clean or any such debris, dirt and material. In addition, all Developers or Owners shall use due diligence to avoid causing any damage to the road or sidewalks and all roads and sidewalks and other improvements constructed by the Declarant as a condition for obtaining plat approval shall remain in the same condition as they were as of the date of final plat approval. Any Developer or Owner who violates the provisions of this paragraph shall reimburse the Declarant upon request for any expenses incurred by Declarant because of the failure of the Developer or Owner to abide by the terms and provisions of this Declaration. In the event any Developer or Owner does not pay the same upon request,then the Declarant shall have a lien against the property of said Developer or Owner to secure payment of said reimbursement. In the event it cannot be determined which Developer or Owner was responsible for the violation of the above referenced provisions in that event the Homeowners Association shall reimburse the Declarant for any expenses incurred by the Declarant. Regardless of any other provision in this Declaration, this paragraph cannot be amended for a period of ten (10) years after recording of this Declaration. Section 7.6 Maintenance of Storm Drain System. All Developers or Owners shall use due diligence to avoid mat4erials from washing into or being put into the storm water drain system as a resulting of construction activities conducted by the Developer or Owner which would include any sediment, cement slurry, or any other material washing off of coming off of any lot upon which a Developer or Owner are constructing a residence and flowing into the storm water drain system. In the event any Developer or Owner are in violation of the terms and provisions of this paragraph, this Developer or Owner shall agree to pay a maintenance charge to the Developer in an amount to be determined by the Developer but not to exceed $500 for each such violation by a Developer or owner. In addition, each Developer or Owner agrees to Indemnify the Declarant from any costs or charges which the Declarant may incur in connection with the cleaning and maintenance of the storm water system as a result of any violation of this paragraph by such Developer or Owner and that this liability on the part of the Developer or Owner shall be joint and several. Any Developer or Owner who violates the provisions of this paragraph shall reimburse the Declarant upon request for any expenses incurred by Declarant because of the failure of the Developer or Owner to abide by the terms and provisions of this Declaration. In the even any Developer or Owner does not pay the same upon request,then the Declarant shall have a lien against the property of said Developer or Owner to secure payment of said reimbursement. In the event if cannot be determined which Developer or Owner was responsible for the violation of the above reference provisions, in that event the Homeowners Association shall reimburse the Declarant for any expenses incurred by the Declarant. Regardless of any other provision in this Declaration,this paragraph cannot be amended for a period of ten (10) years after recording of this Declaration. Section 7.7 Annual Assessments. The initial annual assessment shall be $240 per lot commencing on January 15t of each year. Each Lot Owner purchasing from a Developer shall pay the pro rata portion of the annual assessment, as of the closing date for such purchase. Said annual assessment shall be due on or before January 30th or each year in which the assessment is made. The above referenced annual assessment and all subsequent annual assessments shall be paid to the Homeowners Association who shall then pay for the expenses of the Association as required under the terms of this Declaration. The Declarant shall not be responsible or liable for the payment of any assessment against any Lot owned by the Declarant. During the Development Period,the Declarant shall have the authority to increase the annual assessment to reflect (1) maintenance costs, (2) repair costs, or (3) Plat management costs. All increases during the Development Period must directly reflect increases in the above recited costs. During the Development Period, the Declarant shall have authority to reduce the annual assessments as economic data supports such a reduction because of reduced maintenance costs or other anticipated association expenses. After the Development Period expires,the Board of Directors shall fix the annual assessment in accordance with the above recited standards. Section 7.8 Certificate of Payment. The Association shall, upon written demand, furnish a certificate in writing setting forth whether the assessment on a specified Lot has been paid. A reasonable charge may be made for the issuance of the certificate. Such certificate shall be conclusive evidence of payment of any assessment stated to have been paid. Section 7.9 Special Assessments. In addition to the assessments authorized above,the Association, by a simple majority of the Members eligible to vote at an annual or special meeting called for the purpose, may levy, in any year, a special assessment applicable to that year only,for the purpose of defraying the cost of any construction or reconstruction, unexpected repair or replacement of facilities in the Common Areas. However, the Developer and the Declarant shall not be obligated to pay any special assessments on Lots owned by the Declarant. Assessments may be made based upon the estimate cost of such work, prior to the work's commencement, provided such estimate has been provided by a contractor retained by _ _ the Board for purpose of such estimate. All special assessments for construction of new facilities or acquisition of new equipment, which is not for the upgrade, repair or replacement of existing construction or equipment, shall require approval by the Members, as provided by the Bylaws. Section 7.10. Fines Treated as Special Assessments. Any fines levied by the Association pursuant to RCW Chapter 64.38 (or successor statute authorizing the imposition of fines) shall be treated as a special assessment of the Owner fined, and may be collected by the Association in the manner described in this Declaration. ARTICLE EIGHT: COLLECTION OF ASSESSMENT Section 8.1 Liens—Personal Obligation. All assessments,together with interest and the cost of collection shall be a continuing lien upon the Lot against which each such assessment is made. The lien shall have all the incidents of a mortgage on real property. Each such assessment, together with interest, costs and reasonable attorney's fees, shall also be the personal obligation of the person who was the Owner of the Lot at the time the assessment was due. No Owner may waive or otherwise avoid liability for assessment by non-use of the Common Areas or abandonment of the Lot. Section 8.2 Delinquency. If any assessment is not paid within thirty (30) days after it's due date,the assessment shall bear interest from said date at twelve percent (12%), or, in the event that twelve percent (12%) exceeds the maximum amount of interest that can be charged by law, then the highest permissible rate as provided for by the law. A late charge of five percent (5%) of the amount overdue shall be charged for any payment more than ten (10) days past due. Each Member hereby expressly grants to the Association, or its agents, the authority to bring all actions against each Member personally, for the collection of such assessments as a debt and to enforce lien rights of the Association by all methods for the enforcement of such liens, including foreclosure by an action brought in the name of the Association in a like manner as a mortgage of real proper and such Member hereby expressly grants to the Association the power of sale in connection with such liens. The liens provided for in this section shall be a favor of the Association, and shall be for the benefit of the Association. The Association shall have the power to bid at a foreclosure sale and to acquire, hold, lease, mortgage and convey any Lot obtained by the Association. Section 8.3 Suspension of Voting Rights. In the event any Member shall be in arrears in the payment of the assessments due or shall be in default of the performance of any of the terms of the Articles and Bylaws of the Association,the rules or regulations adopted by the Association, or the Declaration for a period of thirty (30) days, the Member's right to vote shall be suspended and shall remain suspended until all payments are brought current and all defaults remedied. In addition,the Association shall have such other remedies against such delinquent Members as may be provided in the Articles, Bylaws or Declaration. Section 8.4 Enforcement of Assessments. The Board may take such action as is necessary, including the institution of legal proceedings,to enforce the provisions of this Article. In the event the Board begins an action to enforce any such rights, the prevailing party shall be entitled to its attorney's fees, costs and expenses incurred in the course of such enforcement action as provided in this Declaration. ARTICLE NINE: ARCHITECTURAL CONTROL Section 9.1 Development Period. The Declarant hereby reserves the right to exercise any and all powers and controls herein given to the Board of Directors, the ACC or its authorized representative in this Article of the Decfaration, during the Development Period. At the expiration of the Development Period, Declarant reserves the right to continue to exercise all power and controls granted herein to the ACC and to appoint Members of the ACC until such time as there has been constructed on all lots a residence and said residence has been sold and conveyed by either a Developer or the Declarant. Section 9.2 Authority of ACC After Relinquishment of Control by Declarant. At such time as all residences have been constructed on all lots and said residences have been sold and conveyed by either a Developer or the Declarant, the ACC shall have the authority and obligation to manage and administer the review of building plans, specifications and plot plans and such other submissions as described in this Article and to enforce those covenants, conditions, and restrictions. Such authority shall include all authority provided for the ACC in the Association's Articles, Bylaws, Rules and Regulations as initially adopted or amended, and all authority granted to the ACC by this Declaration. Section 9.3 Delegation of Authority of ACC. The ACC or the Declarant may delegate any of its duties, powers, or functions described in this Article to any person, firm or corporation. Section 9.4 Appointment of ACC. The Declarant during the development period reserves the right to act as the ACC or to appoint the Member(s) of the ACC. At such time as all of the lots have been sold by the Declarant and/or Developer,then the Board of the Association shall appoint at least one but not more than three Members of the ACC and if all the members of the ACC shall resign and not replacements have been appointed by the Board,then the Board shall act as the ACC until the members of the ACC are appointed by the Board. Section 9.5 Approval by ACC Required. Except as to construction, alteration, or improvements performed by the Declarant, no construction activity of any type including clearing and grading, cutting or transplant of significant natural vegetation may begin on a Lot or Common Area and no building, structure, fence, or other improvement shall be erected, placed or altered on any Lot or Common Area until, at a minimum,the building plans, specifications, plot plans, and landscaping plan showing the nature, kind, shape, height, materials, exterior color and location of such building, structure or other improvements have been submitted and approved in writing by the ACC or its authorized representative as to harmony of exterior design and location in relation to and its effect upon surrounding structures and topography. Further, no fences, hedges or wall shall be erected or altered and no significant exterior changes shall be made to any building including, but not limited to, exterior color changes, additions or alterations until such written approval shall have been obtained. Section 9.6 Delivery of Documents. The plans, specification and the other required information shall be considered and submitted to the ACC upon personal delivery of three (3) complete sets of all required information to the members of the ACC or to the persons designated to receive such items by the ACC or by mail three days after deposit in the US Mail, postage prepaid, certified return receipt requested,to the ACC in care of the Board of Directors of the Association at the address designated in the most recent notice of assessment by the Board, or at such other address as is designated by the Board by written notice to the Members. Section 9.7 Donation of Time. No member of the ACC shall be entitled to any compensation for services performed on behalf of the ACC. ACC members shall have no financial liability resulting from ACC actions. Section 9.8 Address of the ACC. The address of the ACC shall be at the registered office address of the Association. Section 9.9 Voting—ACC decisions shall be determined by a majority vote of the members of the ACC. Section 9.10 Submission of Plans—The written submission shall contain the name and address of the Owner submitting the plans and specifications, shall identify the Lot involved, and shall provide the following information about the proposed structures: 9.10.1 The location of the structure upon the Lot (plot plan); 9.10.2 The elevation of the structure with reference to the existing and finished Lot grades; 9.10.3 The general design; 9.10.4 The interior layout; 9.10.5 The exterior finish materials and color, including room materials; and 9.10.6 Other information which may be required in order to determine whether the structure conforms to the standards articulated in this Declaration and the standards employed by the ACC in evaluating development proposals. Section 9.11 Evaluating Development Proposals. The ACC shall have the authority to establish aesthetic standards for evaluating development proposals. In addition to these guidelines, in evaluating development proposals, the ACC shall determine whether the external design, color, building materials, appearance, height, configuration, location on the Lot, and landscaping of the proposed structure (the "design elements") harmonize with (1)the various features of the natural and built environment, (2) the aesthetic character of the other homes in all phases of Fairway Estates, and (3) any other factors which affect the desirability or suitability of a proposed structure or alteration (collectively the "approval factors")The ACC shall decline to approve any design in which (1)the design elements fail to harmonize with the approval factors described in the previous sentence or which fail to meet any aesthetic standards promulgated by the ACC, (2) impacts adversely on nearby Properties and Common Areas, or (3) is of a temporary or non-permanent nature. ACC determinations may be amended by a majority vote of the Board of Directors of the Association. Any changes subject to review per the terms set forth herein which are undertaken without submission to the Architectural Control ACC shall be deemed to have been disapproved. The ACC has the authority to stop further work as well as the authority to have prior work undone. Section 9.12 Exclusions The Declarant shall have the right to waive the plans and specifications review for Developer in Fairway Estates. Any such waiver shall not exempt Developer from any of the standards or restrictions articulated in this Declaration and all structures and improvements shall meet all standards and restrictions contained in these declarations. Section 9.13 Approval Procedure. Within sixty(60) days after the receipt of plans, specifications, and the other required information the ACC shall either approve or disapprove the proposed structure. The ACC may decline to approve phase and specifications which, in its opinion, do not conform to restrictions articulated in this Declaration and criteria or to its aesthetic standards. The ACC shall indicate its approval or disapproval on one of the copies of the plans and specifications provided by the applicant and shall return the plans and specifications to the address shown on the plans& specifications. In the event that no disapproval of such plans and specifications is given within sixty (60) days of the submission of the final documents which are required to have been submitted,the plans shall be deemed to be approved. In any event,the Association shall hold the ACC members (and the Declarant) harmless from any actions taken (or actions not taken) relative to the approval, disapproval, or non-action on any plans submitted for review. "Non-action" on the part of the ACC shall not exempt the applicant from any of the provisions of this Declaration or the restrictions articulated herein. By purchasing a Lot in Fairway Estates,the Owners agree that, to the extent permitted by law, the Declarant shall have no liability to the Owners or the Association for any actions taken, or actions not taken, while acting as the ACC. Section 9.14 Compliance with Codes/Environmental Laws. In all cases, ultimate responsibility for satisfying all local building codes and requirements rests with the owner and contractor employed by the Owner. The ACC has no responsibility for ensuring that plans and specifications which it reviews comply with local building codes and requirements. The Owner shall hold the ACC members (and Declarant) harmless in the event that a structure which the ACC (or Declarant) authorized fails to comply with relevant building and zoning requirements of these covenants and restrictions contained herein. No person on the ACC or acting on behalf of the ACC, nor the Declarant acting as the ACC, or anyone acting on behalf of the Declarant shall be held responsible for any defect in any plans or specifications which are approved by the ACC or Declarant nor shall any member of the ACC or any person acting on behalf of the ACC or Declarant be held responsible for any defect in a structure which was built pursuant to plans and specifications approved by the ACC or by the Declarant. Neither the Declarant,the ACC, nor any member of the ACC, nor the Association, nor anyone acting on behalf of the ACC or the Association shall have any responsibility for compliance by the Owner (or any agent, representative guest, or invitee of Owner) with any environmental laws, regulations, or rules, including but not limited to those relating to hazardous waste and placement of underground oil tanks. Section 9.15 Variation. The ACC or the Board of Directors shall have the authority to approve plans and specifications which do not conform to these restrictions in order to (1) overcome practical difficulties or(2) prevent undue hardship from being imposed on an Owner as a result of applying these restrictions. However, such variations may only be approved in the event that the variation will not (1) detrimentally impact on the overall appearance of the development, (2) impair the attractive development of the subdivision or (3) adversely affect the character of nearby Lots. Granting such a variation shall not constitute a waiver of the restrictions articulated in this Declaration Variations shall only be granted if the ACC determines that the variation would further the purpose and intent of these restrictions. Variations shall only be granted in extraordinary circumstances. Section 9.16 Enforcement. The Association (including the Declarant of behalf of the Association), Board or any Owner shall have the right to bring a suit for judicial enforcement of a determination of the ACC or the Board, or after the Development Period, to seek an order requiring the ACC to exercise its authority, and perform its functions, under this Article Nine. In any judicial action to enforce a determination of the ACC, the losing party shall pay the prevailing party's attorney's fees, expert witness fees, and other costs incurred in connection with such a legal action or appeal. Section 9.17 ACC& Declarant Liability. The Association shall hold the ACC Members and the Declarant, if acting as the ACC, harmless from any actions taken (or actions not taken) under any provision of this Declaration, including, but not limited to, actions taken (or not taken) under this Article of this Declaration. By purchasing a Lot in Fairway Estates, the Owners agree that,to the extent permitted by the law, neither the Declarant (nor any officer, director, or representative of the Declarant), nor the ACC (nor any member of the ACC) shall have any liability to the Owners or to the Association for any actions taken, or actions not taken, while acting as the Declarant or the ACC under this Declaration. "Non-action" on the part of the ACC or the Declarant shall not exempt the applicant from any of the provisions of this Declaration or restrictions contained in this Declaration. Section 9.18 Guidelines. The ACC may adopt and amend, subject to approval by the Board, written guidelines to be applied in its review of plans and specifications, in order to further the intent and purpose of this declaration and any other covenants or restrictions covering Real Property. IF such guidelines are adopted, they shall be available to all interested parties upon request. Section 9.19 No Waiver. Approval by the ACC of any plans, drawings or specifications shall not be a waiver of the right to withhold approval of any similar plan, drawing, specification or matter submitted for approval. Section 9.20 Consultation. The ACC may retain and consult persons or entities to assist in the evaluation of plans submitted to the Board for review. Section 9.21 Appeals. After the Development Period,the Board shall serve as an appellate panel to review decisions of the ACC upon request of a party aggrieved by the ACC's decision. The Board shall provide through rules and regulations, a procedure by which decisions of the ACC may be appealed to the Board. The Board may choose, in its discretion,to limit the scope of such appeal and provide time limitations for appeals to be made to the Board. ARTICLE TEN: LAND USE RESTRICTIONS Section 10.1 Use of lots. All Lots within the Real Property shall be used solely for private single-family residential purposes, provided, however, that with such single family residences the Owner(s)thereof may, upon formal written application to the Board, request permission to operate a licensed day care business. The board shall be authorized, but not obligated,to grant such approval and such approval may only be granted by the Board, whose approval cannot be unreasonably withheld, provided (1) all applicable governmental zoning and land use classifications lawfully permit such usage AND, (2)the business and Owner(s) are licensed by all applicable governmental authorities to operate such a day care business,AND (3)the day care business will be operated only Monday through Friday AND (4) no more than four (4) children, in addition to those of the Owner's immediate family, are enrolled in either a part or full time capacity in such a day care AND (5)the Owner(s) such Lot(s) operating such day care facility will fully oversee, strict and supervise all children enrolled and will limit such activities strictly within the confines of their residence(s) and Lot(s) and not outside the same AND, (6)the Owner(s) of said Lot(s) agree to indemnify and hold the Declarant and the Association fully harmless from any and all liability and causes of action of whatever kind arising by virtue of the Owner's operation of such a day care business AND (7)the Owner(s) of said Lot(s) will provide the Association, prior to commencing such business operations, and at all times during such business operations, with verification of liability insurance coverage in an amount not less than $1,000,000 naming the Association and the Declarant and such other parties as the Association may deem appropriate as additional insured AND, (8) such operation does not interfere or otherwise violate any other provisions of this Declaration including, but not necessarily limited to vehicle parking and signage restrictions. Should the Board give written authorization for such usage, such authorization may be revoked by at least five (5) days prior written notice delivered to Owner should the Owner(s) operating such day care business fail to strictly adhere to the provisions contained within this Declaration as well as any additional Rules and Regulations imposed, from time to time, by the Board. No other uses are permitted. Neither the Declarant, the Board and/or the Association shall be deemed to be a partner or joint venture and/or an interest in such business operation to the extent permission to operate such a day care business is authorized. That nothing contained herein shall permit an Owner from conducting an "in home business" provided that all business activity is carried on within the residence and that no employees, clients, customers, tradesmen, suppliers, or similar individuals come to said residence and that no employees, clients, customers, tradesmen, suppliers, or similar individual come to said residence or are situated therein during the conduction of such business. Section 10.2 Minimum Size of Residences. Each residence must have a private enclosed car shelter for not less than two (2) cars; however, a portion of the interior of said garage may be improved and/or finished for residential use by the Owner thereof provided that the exterior of the garage shall not be removed or otherwise modified so as to eliminate the garage door that provided access thereto. No single structure shall be altered to provide for more than on (1) family. Residences shall contain at least 1,200 square feet of finished interior living space. In computing the total square footage of a residence,the basement or daylight basement may be included but garages and/or enclosed decks shall not be included. Section 10.3 Use of lot Not To Interfere With Rights of Others. No Lot shall be used in a fashion which unreasonably interferes with any other Owner's right to use and enjoy the other Owner's Lots. The Board the ACC designed by it, or the Declarant during the Development Period, shall determine whether any given use of a Lot unreasonably interferes with those rights, such determination shall be conclusive. Section 10.4 No Offensive Activity on Lots. No noxious or offensive activity shall be conducted on any Lot, nor shall anything be done or maintained on any Lot which may become an activity or condition which unreasonably interferes with the rights the Declarant gives other Owners to use and enjoy any part of the Real Property. Nor shall any nuisances be allowed to exist or remain on any Lot. No activity or condition shall be conducted or maintained on any port of the Real Property which detracts from the value of the Real Property as a residential community. No untidy or unsightly condition shall be maintained on any Lot. Untidy conditions shall include, but are not limited to, publicly visible storage of wood, garbage receptacles, boats, trailers, mobile homes, recreational vehicles, disabled vehicles of any kind whatsoever, except where specifically provided for said purpose by the Declarant or the Board within the community, if at all, landscaping which is not properly maintained. The Board (or the Declarant during the development Period) shall make the final determination of any violations of this section. Not withstanding anything in this Article Ten to the contrary, during the Development Period the Declarant may permit trailers (temporary trailers) or home(s), which may be used by the Declarant and its authorized representations,to be placed upon Owner's Lots to facilitate the sale of the Lots and the construction of residences (and residence-associated improvements) upon the Lots. Section 10.5 Fences. Fences, walls or shrubs are permitted on side and rear property lines. Fences shall not be placed within the greater of(i)twenty (20) feet of the front property line, or (ii)the distance between the front Lot line and the front wall (fa�ade) at the garage of the primary Residence, subject to (i) the material for the fence,the location, and the size and construction details shall be subject to the approval of the ACC and (ii) determination whether such fences, walls or shrubs would interfere with utility easements reflected on the face of the Plat and other easements recorded elsewhere. In no event shall any fences be allowed between the front Lot line and the front walt (fa�ade) or the primary Residence. No barbed wire, chain link or corrugated fiberglass fences shall be erected on any Lot, except that chain link fencing for any common areas may be considered for approval by the Declarant during the Development Period or by the ACC thereafter. All fences, open and solid, are to be constructed not to be considered as part of the dwelling, provided, however, that this shall not be considered to permit any portion of a dwelling on a Lot to encroach any required setback by local codes, or to encroach upon another Lot or upon any easements indicated on the face of the Plat or as otherwise recorded, or upon the Common Areas or Common Maintenance Areas. In no event shall any structures violate any provisions of any county zoning ordinance, or any specific setbacks as set forth on the recorded plat map, or any setbacks imposed throught the establishment of easements for utilities or access. Section 10.6 Signs. No signs, billboards, or other advertising structures or device shall be displayed to the public view on any lot except one (1) sign not to exceed three square feet in area my be placed on a Lot to offer the property for sale or rent and with the exception of any entry monument and signature which may be installed by the Declarant. Political yard signs on lots, not more than three (3) square feet in area, of a temporary nature, not to exceed (30) days, will be allowed during campaign periods on all residential Lots. Within five (5) days after the date of the election to which the sign refers, such signs must be removed from the Lots. This section 10.6 (including, but not limited to, the restrictions on the number of signs and the sign size limit) shall not apply to signs approved under this Section 10.7 of Article Ten by the Declarant during the Development Period. The Declarant may establish for the duration of the Development Period, signage guidelines and standards for Lot identification signs, Real Estate agent/broker identification signs, "for sale" signs and other signage that may be placed by parties other than the Declarant on any part of the Lots within Fairway Estates,the Common Ares, the common maintenance areas or public rights-of-way. The Declarant may also develop an overall theme of signage within the project, including specific requirements for physical sign installations and size requirements which theme will then become a part of the established guidelines and standards for signage in Fairway Estates during the Development Period. During the Development Period, the Declarant shall have the sole and exclusive right to approve, in the Declarant's sole discretion, any and all signage installations within any part of the real property encompassed within the plat of the Fairway Estates, including the adjacent rights-or-way. Every Owner of a Lot in Fairway Estates and any Developer or rea) estate agent on behalf of an Owner, shall submit any proposed signs to the Declarant for approval prior to installation of the signs. Any signs not specifically approved by the Declarant found anywhere within Fairway Estates, the Common Areas, the Common Maintenance Areas, on any Lot, or an adjacent rights-of-way, may be removed and disposed of by the Declarant. The absolute right of the Declarant to remove unauthorized signs from the Property or adjacent rights-of-way specifically includes, but is not limited to, the Declarant's right to remove any signs placed by real estate agencies or their representatives, including temporary reader board signs and other signage installations. No person, including but not limited to, the person or persons, owning any interest in the signs removed, shall be entitled to compensation of any kind for sign(s) removed by Declarant pursuant to this Section. The Board or the ACC may cause any sign placed on the Property or any adjacent rights- of-way, in violation of this Article Ten to be removed and destroyed without compensation of any kind to anyone including, but not limited to, any persons having an ownership interest in the sign. This section shall not apply to signage placed by Declarant. Additional signage may be installed by Declarant during the Development Period to promote the sale of Lots or houses and to promote Declarant's project and company and representatives. Notwithstanding anything in this Section 10.6 of Article Ten to the contrary, signs placed by the Declarant shall not be subject to any sign restrictions and specifically shall not be subject to the limitation set forth in this Article Ten on the number of signs and the size of signs. The Declarant shall not be subject to any guidelines or standards established by Declarant for other parties pursuant to this Section 10.6 of Article Ten. Under no circumstances shall the Declarant be liable for, or be required to pay, for all or any part of the construction, installation or maintenance of any signs which are placed upon any Lot not owned by the Declarant. This Section shall apply even if Declarant requires an Owner to place a sign pursuant to the Section 10.6 of Article Ten. Section 10.7 Animals. No animals, except a maximum of two (2) dogs and (2) cats per Lot. Cage birds, fish in tanks, and other small household pets, will also be permitted to be maintained on the Lots. Dogs shall not be allowed to run at large or to create a disturbance for other Owners in the plat. No animals will be allowed to be leashed, chained or otherwise tied to any portion of the front or sides of Residences. Leashed animals are permitted within rights- of-ways when accompanied by their owners. The person accompanying the animal must exercise "scooping" of animal waste. All pens and enclosures must be screened from view of other Residences and Lots and must be approved by the ACC prior to construction and shall be kept clean and odor free at all times. If the investigation of the Board indicates that animals are kept in violation of this Section, the Declarant, during the Development Period, or the Board or the ACC thereafter, will give the Owner ten (10) days written notice of the violation. Such violation must be remedied by the owner within such ten (10) day period. Failure to comply with the written notice will result in a fine of$25.00 per day. Any fine imposed by this Section shall be the personal obligation of the fined Owner and a lien on the Lot of the fined Owner. The Association shall be entitled to attorney's fees and costs for any action taken to collect such fines in accordance with the provisions of this Declaration. Section 10.8 Driveways. All driveways shall be paved with concrete, unless otherwise approved by the ACC. Section 10.9 Delegation of Use and Responsibilities. Any owner may delegate, to members of his family or his tenants, in accordance with the Bylaws of Fairway Estates. Homeowners Association,the Owner's right of enjoyment of Common Areas and Common Maintenance Areas. In the event an Owner rents or leases his property, a copy of this Declaration, as well as any rules and regulations that may be adopted by the Association, shall be made available by the Owner to the prospective renter at the time of commitment to the rental agreement. Each Owner shall also be responsible for informing guests and service personnel of the contents of this Declaration, as well as any rules and regulations that may be adopted by the Association as they may relate to appropriate community behavior. Each Owner personally and the Owner's Lot, shall be responsible for any damages to any Common Areas and Common Maintenance Areas (or any other area maintained by the Association) or to any other Association property whether real or personal, caused by an Owner's family, guest, tenant, agent, workman, contractor, or other licensee of invitee. The Association shall have a lien upon the Owner's Lot the amount of the damages. Section 10.10 Landscaping Standards. The entire front yard landscaping should be installed prior to occupancy (weather permitting). The entire landscaping, including the remaining portions of the side and rear yard shall be installed within twelve (12) months of the receipt of a Certificate of Occupancy. Each Lot Owner shall be responsible for Installing and maintaining the landscaping within the adjacent right of way. If inclement weather condition prevent the timely installation of said landscaping improvements for either front or back yard, the Lot Owner must make application to the ACC for an extension of time until weather conditions sufficiently improve. "Front yard" shall be defined as the lot area extending from the front property line back to a line measure parallel with the front property line which would coincide with the front wall of the main dwelling on the Lot, exclusive of any garage projections. The front yard landscaping shall include all the adjacent public street right-of-way along the Lot frontage and side frontage out to the edge of the curb or sidewalk in the public street. Each lot Owner shall be responsible for installing and maintaining the landscaping within his adjacent right-of-way, except as otherwise provided above. Section 10.11 Antennas, Satellite Reception. Satellite dishes of no more than one meter in diameter or diagonal measurement are permitted on the Lots with ACC approval of the location of the satellite dish in the manner described in Article Nine. Except as provided above, no radio or television antenna or transmitting tower or satellite dish shall be installed on the exterior of _ any home without approval of the ACC obtained pursuant to Article Nine, and a showing by the Owner that such installation will be visually shielded from the view of the residents traveling upon streets located on the Properties. Section 10.12 Setbacks. No building shall be located on any Lot nearer to the front lot line or nearer to the side street than the minimum building setback lines adopted by the government authority with jurisdiction over the Properties. Section 10.13 Roofs. Roofs on all buildings must be finished with at least a twenty year composition material,the color of which shall be approved by the ACC. Any other material must be approved by the ACC. Section 10.14. Underground Utilities Required. Except for any facilities or equipment provided by the Declarant or any utility, all electrical service,telephone lines and other outdoor utility lines shall be placed underground. Section 10.15 Vehicle Parking and Storage. No Vehicle may be parked on any building Lot or sidewalks, except on designated and approved driveways or parking areas which shall be hard surfaced. Vehicles shall be parked only in garages or driveways located entirely on a Lot. No storage of goods,vehicles, boats, trailers, trucks, campers, recreational vehicles or other equipment or device shall be permitted in open view from any Lot or right-of-way. (Vehicles, boats,trailers,trucks, campers and recreational vehicles shall be referred to as "Vehicles".) This provision shall not exclude parking of up to a combination of two (2) automobiles and regular sized pickup trucks owned or used by the lot Owner on the designated driveway areas adjacent to the garages on the Lot. A lot Owner may also park on the driveway recreational vehicles and/or boat trailers for a period not to exceed 48 hours. This paragraph is also not meant to disallow permanent (more than 48 hours) parking or storage of vehicles on the Lots, but if stored, vehicles shall be adequately screened from the view of adjacent rights-of-way and Lots. Screening of such vehicles must have the approval of the ACC. Upon 48 hours' notice to the Owner of the improperly parked vehicle,the Board has the authority to have towed, at the Owner's expense, any vehicles, (except up to a combination of two automobiles and regular sized pickup trucks owned or used by the Lot Owners) still visible from the right-of-way or adjacent residences that have been parked on any Lot or within the right-of-way for more than 48 hours. Notwithstanding the foregoing, Owners who have visiting guests intending to stay in such a vehicle may secure written permission from the Board for such guests to park the vehicle upon the Lot owned by the Owner for a maximum period of One (1)week. Such a privilege shall only exist, however, after the written permission has been obtained from the Board. Section 10.16 Easements for Enforcement Purpose. Owners hereby grant to the Association an express easement for the purpose of going upon the Lots of Owners for the purpose of removing vehicles or other similar objects which are parked or stored in violation of the terms of this Declaration. Section 10.17 Excavation and Fill. Except with the permission of the ACC, or except as may be necessary in connection with the construction of any approved improvement, no excavation or fill shall be made nor shall any dirt be removed from any Lot herein. Section 10.18 Drainage. The Owner of any Lot shall not take any action which would interfere with surface water drainage across that Lot either through natural drainage or by drainage easements. Any change of drainage, either through natural drainage areas or through drainage easements must be approved by the ACC. All drainage improvements must be completed prior to occupancy in accordance with the drainage plan submitted to the ACC. Section 10.19 Use During Construction. Except with the approval of the Board, no persons shall reside upon the premises of any Lot until such time as the improvements to be erected thereon in accordance with the plans and specifications approved by the Board have been completed. Section 10.20 Garbage and Refuse. No garbage, refuse, rubbish, cuttings or debris of any kind shall be deposited on or left upon any Lot unless placed in an attractive container suitably located and screened from public view. All equipment for the storage or disposal of such materials shall be kept in a clean and sanitary condition. Section 10.21 Tanks, Etc. No elevated tanks of any kind shall be erected, placed, or permitted on any part of such premises. Any tanks for use in connection with any residence constructed on such premises, including tanks for the storage of fuels, must be buried or walled sufficiently to conceal them from the view from neighboring Lots, roads, or streets. All clothes lines, garbage cans, equipment, coolers, wood piles, or storage piles shall be walled in or otherwise suitably screened to conceal them from the view from neighboring Lots, roads, or streets. Plans for all enclosures of this nature must be approved by the ACC prior to construction. Section 10.22 Auto Repair. No auto repair shall be permitted except within enclosed garages which are kept closed. The only repairs permitted on the balance of the Property are occasional casual repairs and maintenance activities such as tune-ups or oil changes. Section 10.23 Exterior Finish. The exterior finishes on the front of houses shall be approved by the ACC. The entire residence must be painted or stained in colors approved by the ACC. All metal fire place chimneys shall be either wood or stone wrap. Section 10.24 Maintenance of Structures and Grounds. Each Owner shall maintain his Lot and residence thereon in a clean and attractive condition, in good repair and in such fashion as not to create a fire hazard. Section 10.25 Firearms. The use of firearms, within Fairway Estates is expressly prohibited. Section 10.26 Dirt Bikes and/or ATV. No unlicensed motor vehicles, including motorcycles, dirt bikes, motor scooters, ATV's etc., shall be permitted on any road within the plat, nor shall dirt bikes or ATV's be permitted to operate on any Owner's lot. Section 10.27 Damage Repair. All Owners agree to repair immediately any damage to any utilities adjacent to their lot or lots, in the event any of the utilities are cracked broken, or otherwise damaged as a result of dwelling construction activities, or other activities by Owner, by persons acting for Owner, or by persons in or around the property at the request or with the consent of the Owner. Section 10.28 Building Materials. All home constructed on each lot shall be built of new materials with the exception of"decor" items such as used brick, weathered planking, and similar items. The Committee will determine whether a used material is a "decor" item. In making this determination,the Committee will consider whether the material harmonizes with aesthetic character of Fairway Estates development and whether the material would add to the attractive development of the subdivision. All siding and trim are to be re-sawn wood and/or vertical or horizontal "LP" type siding, brick, authentic stone siding, OSB LAP or vinyl siding OR concrete siding of a color approved by the Committee. The exterior of all construction on any Lot shall be designed, built, and maintained in such a manner as to blend in with the natural surroundings and landscaping. Exterior colors must be approved by the Committee. Exterior trim, fences, doors, railings, decks, eaves, gutters and the exterior finish of garages and other accessory buildings shall be designed, built and maintained to be compatible with the exterior of the structure they adjoin. The Committee or Board will establish an approval process and color guidelines. Any change of color as to the exterior of any existing home within Fairway Estates will be subject to the same approval process. Section 10.29 Codes. All construction shall conform to the requirements of the State of Washington's rules and regulations for installing electric wires and equipment, and the uniform codes (building mechanical, plumbing), in force at the commencement of the construction, including the latest revisions thereof. Section 10.30 Entry for Inspection. Any agent or member of the Declarant or any member of the ACC may at any reasonable predetermined hour upon 24 hours notice and only during construction or exterior remodeling, enter and inspect the structure to determine if there has been complied with the provisions of this Declaration. The above recited individuals shall not be guilty of trespass for such entry or inspection. There is created an easement over, under, and across, residential lots for the purpose of making and carrying out such inspections. Section 10.31 Authority to Adopt Additional Rules and Restrictions. After the Development Period, the Association shall have the authority to adopt additional written rules and restrictions governing the use of the Properties, provided such rules and restrictions are consistent with the purposes of the Declaration, and to establish penalties for violation of those rules and restriction. If rules and restrictions are adopted,they, along with the established penalties, shall be available to all Members upon request. Section 10.32 Enforcement. The Association, or the Declarant during the Development Period, may, but is not required to,take any action to enforce the provisions of the Declaration available to it, under law, including but not limited to imposition of fines as authorized by RCW Chapter 64.38, specific performance, injunctive relief, and damages. Any Member may also enforce the terms of this Article (although a Member may not impose a fine as authorized by RCW Chapter 64.38) but the member must first obtain an order from a court of competent jurisdiction entitling the Member to relief. In the event that a Member takes any action to enforce the terms of this Article the Association shall not be in any way obligated to join in such action, or pay any of the attorney's fees, costs, and expenses incurred in such action. ARTICLE ELEVEN EASEMENTS Section 11.1 Easement for Encroachments. Each Lot is, and the Common Areas are subject to an easement for encroachments created by construction, settlement, and overhangs as designed or constructed by the Declarant, and a valid easement for encroachments and for maintenance of the same as long as said as said improvements remain. Section 11.2 Easements on Exterior Lot Lines. In addition to Easements reserved on any plat of the properties or shown by instrument of record, easements for utilities and drainage are reserved for the Declarant or its assigns, over a five-foot wide strip along each side of the interior Lot lines, and seven feet over the rear and front of each Lot, and over, under, and on the Common Areas. Within all of the easements, no structure, planting or fill material shall be placed or permitted to remain which may, in the opinion of the Board or ACC, damage or interfere with the installation and maintenance of utilities, or which may, obstruct or retard the flow of water through drainage channels and easements, or which would interfere with the Sound Barrier Wall. The easement area of each Lot and all improvements with it shall be maintained continuously by the Owner of such a Lot, except those improvements for which a public authority, utility company or the Association is responsible. Section 11.3 Association's Easement of Access. The Association, the ACC, and its agents shall have an easement for access to each Lot and to the exterior of any building located thereon during reasonable hours as may be necessary for the following purpose: (a) cleaning, maintenance, or repair of any home or Lot as provided in this Declaration; (b) repair, replacement or improvement or any Common Area accessible from that Lot, including but not limited to the repair, maintenance or replacement of the Sound Barrier Wall; (c) emergency repairs necessary to prevent damage to the Common Areas or to another Lot, or to the improvements thereon; (d) cleaning, maintenance, repair or restoration work which the Owner is required to do but has failed or refused to do; and (e) all acts necessary to enforce these Covenants. Section 11.4 Easement for Declarant. Declarant shall have an easement across all Common Areas for ingress, egress, storage and placement of equipment and materials, and other actions necessary or related to the development or maintenance of the Real Property. ARTICLE TWELVE MORTGAGEE PROTECTION Section 12.1 Mortgagees. Notwithstanding and prevailing over any other provisions of the Declaration,the Association's Articles of Incorporation or Bylaws, or any rules, regulations or management agreements,the following provisions shall apply to and benefit each Institutional First Mortgagee (."Mortgagee")which holds a Mortgage given for the purpose of obtaining funds for the construction or purchase of a Housing Unit on any Lot or the improvement of any Lot. Section 12.2 Liability Limited. The mortgagee entitled to the protection hereof shall not in any case or manner be personally liable for the payment of any assessment or charge, nor for the observance or performance of any covenant, restriction, rule, Association Article of Incorporation or Bylaw, or management agreement, except for those matters which are enforceable by injunctive or other equitable relief, not requiring the payment of money, except as hereinafter provided. Section 12.3 Mortgagee's Rights During Foreclosure. During the pendency of any proceeding to foreclose the Mortgage, the Mortgagee or the receiver, if any, may exercise any or all of the rights and privileges of the Owner of the mortgaged Lot, including but not limited to the right to vote as a Member of the Association to the exclusion of the Owner's exercise of such rights and privileges. Section 12.4 Acquisition of Lot by Mortgagee. At such time as the Mortgagee shall become entitled to possession of the Lot, the Mortgagee shall be subject to all of the terms and conditions of the Declaration, and the Articles, Bylaws, rules and regulations of the Association, including but not limited to the obligation to pay for all assessments and charges accruing thereafter, in the same manner as any Owner, provided however, the Mortgagee shall acquire the title to said Lot free and clear of any lien authorized by or arising out of any provisions of the Declaration which secure the payment of any assessment for charges accrued prior to the date the Mortgagee became entitled to possession of the Lot. Section 12.5 Reallocation of Unpaid Assessment. If it is deemed necessary by the Association, any unpaid assessment against a Lot foreclosed against may be treated as a common expense of other lots. Any such unpaid assessment shall continue to exist as a personal obligation of the defaulting Owner of the respective Lot to the Association. Section 12.6 Subordination. The liens for assessments provided for in this instrument shall be subordinate to the lien of any Mortgage, or other security interest placed upon a Lot or Housing Unit as a construction loan security interest or as a purchase price security interest and the Association will upon demand, execute a written subordination document to confirm the particular superior security interest. Section 12.7 Mortgagee's Rights. Any Mortgagee shall have the right on request therefore to (a) inspect the books and records of the Association during normal business hours; (b) receive an annual audited financial statement of the Association within ninety (90) days following the end of any fiscal year and (c) receive written notice of all meetings of the Association and designate a representative to attend all such meetings. Section 12.8 Limitation on Abandonment of Common Areas. The Association shall not, without the prior written approval of seventy five percent (75%) of the Mortgages, seek to abandon the Common Areas for reasons other than substantial destruction or condemnation of the property. Such abandonment shall also be subject to all applicable land use laws and rules. Section 12.9 Notice. If such notice has been requested in writing, Mortgages shall be entitled to timely written notice of(a) substantial damage or destruction of any Housing Unit or any part of the Common Areas of facilities; (b) any condemnation or eminent domain proceedings involving any Housing Units or any portion of Common Areas or facilities; (c) any default under this Declaration or the Article, Bylaws or rules and regulations of the Association by an Owner of any Housing Unit on which it holds the mortgage which is not cured within thirty (30) days; (d) any sixty (60) day delinquency in the payment of assessments or charges owed by the owner of any Housing Unit on which it holds the mortgage (e) ten (10) days prior written notice of any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Association; and (f) any proposed action that requires the consent of a specific percentage of Mortgagees. ARTICLE THIRTEEN MANAGEMENT CONTRACTS Each member hereby agrees that the Association and the ACC may enter into agreements for the performance of any or all of the functions of the Association and the ACC with such persons or entities as the Association deeps appropriate; however, any agreement for professional management of the Properties, or any other contract providing for services by the Declarant must provide for termination by either party without cause after reasonable notice. ARTICLE FOURTEEN: INSURANCE Section 14.1 Coverage. The Association may purchase as a Common Area Expense and shall have authority to and may obtain insurance for the Common Areas against loss or damage by fire or other hazards in an amount sufficient to cover the full replacement value in the event of damage or destruction. It may also obtain a comprehensive public liability policy covering the Common Areas. The comprehensive public liability coverage shall be in an amount to be determined by the Association. The minimum amount of such insurance shall be $500,000. It may also obtain insurance to cover the Board,the ACC, its agents and employees from any action brought against them arising out of actions taken in furtherance of the Association's duties under this Declaration. Following the development period, all such insurance coverage shall be written in the name of the Association as trustee for each of the Members of the Association. The Association shall review the adequacy of the Association's insurance coverage at least annually. All policies shall review the adequacy of the Association's insurance coverage at least annually. All policies shall include a standard mortgage's clause and shall provide that they may not be canceled or substantially modified (including cancellation for nonpayment of premium)without at least ten (10) days prior written notice to any and all insured named therein, including Owners and Institutional First Mortgagees that have requested notice. Section 14.2 Replacement, Repair After Loss. In the event of the damage or destruction of the Common Areas covered by insurance written in the name of the Association,the Association may, upon receipt of the insurance proceeds, and to the extent of such proceeds contract to rebuild or repair such damaged or destroyed portions of the Common Areas to as good a condition as they were when the loss occurred; provided, however that the Association's election not to rebuild the Common Areas shall require the approval of seventy five percent (75%) of the Association. The Association may in its sole discretion contract with any contractor for reconstruction or rebuilding of such destroyed portions of the Common Areas. ARTICLE FIFTEEN: RULES AND REGULATIONS The Association and/or its Board of Directors is hereby authorized and empowered to adopt rules and regulations governing the use of the Properties and the personal conduct of the members and their guests thereon, and to establish penalties for the infraction thereof, in the manner described by RCW Chapter 64.38,the Bylaws and any resolutions passed by the Board. All Lot Owners shall be given written notice of the rules and regulations in the manner required by RCW Chapter 64.38 ARTICLE SIXTEEN PRESERVATION OF REMEDIES Section 16.1 Remedies Not Limited. The remedies provided herein, including those for collection of any assessment or other charge or claim against any member, for and on behalf of the Association, ACC, or Declarant, are in addition to, and not limitation of, any other remedies provided by law. Section 16.2 No Waiver.The failure of the Association, the ACC, the Declarant or of any of their duly authorized agents or any other of the Owners to insist upon the strict performance of or compliance with the Declaration or any of the Articles, Bylaws or rules or regulations of the Association, or to exercise any right or option contained therein, or to serve any notice or to institute any action or summary proceedings, shall not be construed as a waiver or relinquishment of such right for the future, but such right to enforce any of the provisions of the Declaration or of the Articles, Bylaws or rules or regulations of the Association shall continue and remain in full force and effect. No waiver or any provision of the Declaration or of the Articles, Bylaws, rules or regulations of the Association shall be deemed to have been made, either expressly or implied, unless such waiver shall be in writing and signed by the Board of Directors of the Association pursuant to authority contained in the resolution of the Board of Directors. ARTICLE SEVENTEEN CONDEMNATION In the event of the partial condemnation of the Common Areas, the proceeds shall be used to restore the remaining Common Area, and any balance remaining shall be distributed to the Association. In the event that the entire Common Area is taken or condemned, or sold, or otherwise disposed of in lieu of or in avoidance thereof,the condemnation award shall be distributed to the Association, No proceeds received by the Association as the result of any condemnation shall be distributed to a Lot Owner or to any other party derogation of the rights of the First Mortgagee of any Lot. ARTICLE EIGHTEEN GENERAL PROVISIONS Section 18.1 Binding Effect. All present and future Owners or occupants of Lots shall be subject to and shall comply with the provisions of this Declaration, and the Articles, Bylaws and rules and regulations of the Association, as they may be amended from time to time, are accepted and ratified by such Owner or occupant, and all such provisions shall be deemed and taken to be covenants running with the land and shall bind any person having at the time any interest or estate in such Lot, as though such provisions were recited and stipulated at length in each and every deed and conveyance or lease thereof. Section 18.2 Enforcement by Court Action. The Association,the Declaration,the ACC,the Homeowner's Association, or any Lot Owner shall have the right to enforce, by any proceedings at law in equity, all restrictions, conditions, covenants, reservations, liens, and charges now or hereafter imposed by the provisions of the Declaration. Should the Association or any Owner employ council to enforce any of the foregoing covenants, conditions, reservations, or restrictions, all costs incurred in such enforcement, including a reasonable fee of counsel, with or without legal action, shall be paid by the owner found to be in violation of said condition, covenants, reservation, or restriction, or found to be delinquent in the payment of said lien or charge. Section 18.3 Enforcement by Self Help. The Declarant,the ACC,the Association, or the duly appointed agent of either, may enter upon any lot, which entry shall not be deemed a trespass, and take whatever steps are necessary to correct a violation of the provisions of this _ Declaration. Provided this provision shall not be construed as a permission to breach the peace. Section 18.4 Condition Precedent to Action. Prior to taking action either by court or by self help,written notice shall be given to the offending Lot Owner. Such notice shall specify the nature of the offense and shall also specify the action necessary to cure. Such action shall also provide a reasonable opportunity to cure which except in the case of an emergency, shall not be less than thirty (30) days. Section 18.5 Expenses of Action. The expenses of any corrective action or enforcement of this Declaration, if not paid by the offending Owner within thirty (30) days after written notice and billing, may be filed as the lien upon such Lot, enforceable as other liens herein. Section 18.6 Owner Obligation. Should the Lot Owner object to the complaints of the Declarant, the Association or ACC in writing within a period of fifteen (15) days after the complaint is made and, further, should the parties not agree on property maintenance or other matters complained of, the matter shall be submitted to binding arbitration. The arbitration shall be binding upon the parties. If the parties cannot agree upon an arbitrator, each party shall choose on arbitrator and they, in turn, shall choose a third. The arbitration shall be conducted in accordance with the rules of arbitration under the laws of the State of Washington in existence at the time of any such arbitration, currently found in Chapter 7.04A RCW. Section 18.7 Costs and Attorneys Fees. In the event of legal action, the prevailing party shall be entitled to recover actual costs and attorney fees. For the purposes of this Declaration "legal action" shall include arbitration, lawsuit,trial, appeals, and any action, negations, demands, counseling or otherwise where the prevailing party has hired an attorney. It is the intent of this provision to reimburse the prevailing party for all reasonable attorney fees and actual costs incurred in defending or enforcing the provisions of this Declaration, or the Owner's rights hereunder. Section 18.8 Failure to Enforce. No delay or omission on the part of the Declarant of the Owners of other Lots in exercising any rights, power, or remedy provided in this Declaration shall be construed as a waiver or acquiescence in any breach of the covenants, conditions, reservations, or restrictions set forth in the Declaration. No action shall be brought or maintained by anyone whatsoever against the Declarant for or on account of its failure to bring any action for any breach of those covenants, conditions, reservations, or restrictions, or for imposing restrictions which may be unenforceable. Section 18.9 Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall not affect any other provisions which shall remain in full force and effect. Section 18.10 Interpretation. In interpreting this Declaration,the singular may also include the plural and the masculine may include the feminine, or vice versa, where the context so admits or requires. This Declaration shall be liberally construed in favor of the party seeking to enforce its provisions to effectuate the purpose of protecting and enhancing the value, marketability, and desirability of the Properties by providing a common plan for the development of Fairway Estates. Section 18.11 Term. This Declaration shall be effective for an initial term of twenty (20) years, and thereafter by automatic extension for successive periods of five (5) years each, unless terminated, or amended, at the expiration of the initial term or any succeeding five (5)year term by a termination agreement or amendment executed by the then Owners of not less than seventy-five percent (75%) of the Lots then subject to this Declaration. Any termination agreement or amendment, must be in writing, signed by all the approving Owners, and must be recorded with the Thurston County Auditor. Section 18.12 Perpetuities. In the event that any provision of this Declaration violates the rule against perpetuities, such provision shall be construed as being void and of no effect as of twenty-one (21) years after the death of the last surviving incorporator of the Association, or twenty-on (21) years after the death of the last survivor of all of the said incorporators' children and grandchildren who shall be living at the time this instrument is executed, whichever is later. Section 18.13 Method of Notice. Any notice required by the Declaration or the Articles or Bylaws of the Association or the rules and regulations adopted by the Association shall be deemed properly given when personally delivered, deposited in the United States mail, postage prepaid, or when transmitted by facsimile, or by overnight mail service. Section 18.14 Successors and Assigns. This Declaration binds and is for the benefit of the heirs, successors and assigns of Declarant, the Declarant, the Members and the Owners. ARTICLE NINETEEN AMENDMENT AND REVOCATION Section 19.1 Exclusive Method. This instrument may be amended and partial or completely revoked only as herein provided or otherwise provided by law. Section 19.2 Amendment by Declarant. Notwithstanding any other provision of this Declaration,this Declaration can be amended at any time by the Declarant prior to the time that seventy-five percent (75%) of the Lots have been sold to others than Declarant Developer. That all Lot Owners agree to be bound by such amendment or amendments as made by the Declarant pursuant to this provision. Thereafter this Declaration can be amended only as provided for in this Declaration. Section 19.3 Prior Approval by FHA/HUD. Regardless of whether or not seventy-five percent (75%) of the lots have been sold to others than Declarant Developer, in the event any loan with respect to any lot or building constructed thereon is insured through either the Federal Housing Administration or the Department of Veterans Affairs or any programs sponsored by either such agency, then the insuring agency must give written approval before any of the following actions can be approved by either the Declarant or the Lot Owners: (i) Annexation of additional properties; (ii) Dedication of any additional properties; and (iii) Amendment to this Declaration. Section 19.4 Voting. This Declaration may be amended at any annual meeting of the Association, or at special meeting called for such purpose, if seventy five percent (75%) or more of the owners vote for such amendment, or without such meeting if all Owners are notified in writing of such amendment and if seventy five percent (75%) or more of the Owners vote for such amendment by written ballot. Notice of any proposed amendment shall be given to all Lot Owners not less than thirty (30) days prior to the date of the annual meeting or of any special meeting at which the proposed amendment shall be considered. Notwithstanding any of the foregoing, fifty one percent (51%) of all Institutional First Mortgages who have requested notification of amendments must give prior written approval to any material amendment to the Declaration or Bylaws, including any of the following. 19.4.1 Voting Rights; 19.4.2 Assessments, assessment liens and subordination of such liens; 19.4.3 Reserves for maintenance, repair and replacement of Common Areas; 19.4.4 Insurance or fidelity bonds; 19.4.5 Responsibility for maintenance and repair, 19.4.6 Contraction of the project or the withdrawl of property from the Properties; 19.4.7 The boundaries of any Lot; 19.4.8 Leasing of Housing Units other than as set forth herein, 19.4.9 Imposition of any restrictions on the right of an Owner to sell or transfer his or her Lot; 19.4.10 Any decision by the Association to establish self-management when professional management had been required previously by an Institutional First Mortgages; 19.4.11 Restoration or repair (after hazard damage or partial condemnation) in a manner other than that specified in this Declaration. 19.4.12 Any action to terminate the legal status of the properties after substantial destruction or condemnation occurs; or 19.4.13 Any provisions which are for the express benefit of Institutional First Mortgagees. Section 19.5 Effective Date. Amendments shall take effect only upon recording with the Pierce County Auditor of the county in which this Declaration is recorded. Section 19.6 Protection of Declarant. For such time as Declarant shall own Lots located in the Properties there shall be no amendments to the Declaration, the Articles of Incorporation, the Bylaws of the Association, or any Rules and Regulations adopted by the Association which: 19.6.1 Discriminate or tend to discriminate against the Declarant's rights. 19.6.2. Change Article One ("Definition") in a manner which alters the Declarant's right or status. 19.6.3 Alter the character and rights of inembership or the rights of the Declarant as set forth in Article Two. 19.6.4 Alter its rights as set forth in Article Nine relating to architectural controls. 19.6.5 Alter the basis for assessments, or the Declarant's exemption from assessments. 19.6.6 Alter the number or selection of Directors as established in the Bylaws. 19.6.7 Alter the Declarant's rights as they appear under this Article. Section 19.7 Notice. Any notice required hereunder shall be deemed effective when personally delivered or three days after mailing by certified and regular mail to the owner of public record at the time of such mailing to such Owner's address as it appears on the Pierce County Assessor's tax records and to the street address of the lot(s) herein. Notices to lenders shall be sent to the last address the lender has given to the Association. The Association is not required to provide notice of any matter to any lender who has not notified the Association in writing of such lender's desire to receive notice, and/or has not given the Association written notice of the lender's address for receipt of notices. The Association shall not undergo investigation outside of its own records into the name or location of any lender or lien holder.