peralta creek tower revised cc&rs

7/26/2019 Peralta Creek Tower REVISED CC&Rs

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RECORDING REQUESTED BY:

PERALTA CREEK TOWER

OWNERS ASSOCIATION

WHEN RECORDED MAIL TO:

PERALTA CREEK TOWER

OWNERS ASSOCIATION C/O FONG & FONG, APC

2161 HARBOR BAY PARKWAY

ALAMEDA, CA 94502-3019

FIRST RESTATED DECLARATION OF

COVENANTS, CONDITIONS AND RESTRICTIONS OF

THE PERALTA CREEK TOWER OWNERS ASSOCIATION


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FIRST RESTATED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OFTHE PERALTA CREEK TOWER OWNERS ASSOCIATION

TABLE OF CONTENTS

RECITALS

ARTICLE 1 DEFINITIONS

[1.1] Architectural Review Committee. ................................................................................ 2[1.2] Articles. ......................................................................................................................... 2[1.3] Assessment.................................................................................................................... 2[1.4] Association.................................................................................................................... 2[1.5] Balconies. ...................................................................................................................... 2[1.6] Board. ............................................................................................................................ 2[1.7]

By-Laws. ....................................................................................................................... 2

[1.8] Common Area. .............................................................................................................. 2[1.9] Condominium. .............................................................................................................. 3

[1.10]

Declarants. .................................................................................................................... 3

[1.11] Declaration. ................................................................................................................... 3[1.12] Development. ................................................................................................................ 3[1.13] Director. ........................................................................................................................ 3[1.14] Governing Documents. ................................................................................................. 3[1.15] Improvements. .............................................................................................................. 3[1.16] Map. .............................................................................................................................. 3[1.17]

Member. ........................................................................................................................ 3

[1.18] Mortgage. ...................................................................................................................... 3[1.19] Mortgagee. .................................................................................................................... 3[1.20] Owner............................................................................................................................ 3

[1.21]

Parking Spaces. ............................................................................................................. 4[1.22] Patio Garden. ................................................................................................................ 4

[1.23] Plan. .............................................................................................................................. 4[1.24] Project. .......................................................................................................................... 4[1.25] Restricted Common Area.............................................................................................. 4[1.26] Rules. ............................................................................................................................ 4[1.27]

Unit. .............................................................................................................................. 4

[1.28] Unit Owner or Owner. .................................................................................................. 5

ARTICLE 2 - PROPERTY RIGHTS AND EASEMENTS

[2.1] Type of Development. .................................................................................................. 5[2.2] Condominium. .............................................................................................................. 5[2.3] Common Area Rights. .................................................................................................. 5[2.4] Common Area Ownership. ........................................................................................... 6[2.5] Restricted Common Area.............................................................................................. 6


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[2.6] Encroachment Easement. .............................................................................................. 6[2.7] Other Rights. ................................................................................................................. 7[2.8] Appurtenant Rights. ...................................................................................................... 7[2.9] Reservation of Rights.................................................................................................... 7[2.10] Authority Over Common Area. .................................................................................... 7

[2.11]

Delegation of Use Rights. ............................................................................................. 8

[2.12] Restrictions on Partition................................................................................................ 8

ARTICLE 3 - RESTRICTIONS

[3.1] Use of Unit. ................................................................................................................... 8[3.2] Use of Parking Space. ................................................................................................... 8[3.3] Rental Units. ................................................................................................................. 9[3.4] Nuisance...................................................................................................................... 10[3.5] Vehicle and Parking Restrictions. ............................................................................... 11

[3.6]

Towing Authority. ...................................................................................................... 11[3.7] Animals. ...................................................................................................................... 12

[3.8] Television or Radio Equipment. ................................................................................. 12[3.9] Signs............................................................................................................................ 13[3.10]

Trash Removal and Storage. ....................................................................................... 13

[3.11] Use of the Common Areas. ......................................................................................... 13[3.12] Use of Units. ............................................................................................................... 14[3.13]

Structural Integrity. ..................................................................................................... 14

[3.14] Alterations, Modifications or Additions. .................................................................... 14[3.15] Clotheslines. ................................................................................................................ 14[3.16] Guests and Lessees. .................................................................................................... 14

[3.17]

Storage. ....................................................................................................................... 14[3.18] Fires. ........................................................................................................................... 14

ARTICLE 4 - MAINTENANCE AND REPAIR OBLIGATIONS

[4.1] Owners Maintenance and Repair Obligations. .......................................................... 15[4.2]

Maintenance and Care of Patio Garden. ..................................................................... 15

[4.3] Associations Maintenance, Repair and Landscaping Obligations. ........................... 16[4.4] Cooperation and Access.............................................................................................. 16[4.5] Reimbursement and Indemnification. ......................................................................... 16

ARTICLE 5 - THE ASSOCIATION

[5.1] Formation of the Association. ..................................................................................... 17[5.2] Governing Body. ......................................................................................................... 17


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[5.3] Membership. ............................................................................................................... 17[5.4] Voting Rights. ............................................................................................................. 17[5.5] Joint Ownership Votes. ............................................................................................... 18[5.6] Powers of the Association........................................................................................... 18[5.7] Duties of the Association. ........................................................................................... 20

[5.8]

Taxes and Assessments. .............................................................................................. 20

[5.9] Utility Service to the Common Area. ......................................................................... 20 [5.10] Reporting Requirements. ............................................................................................ 21[5.11] Limitations on Authority of the Board. ...................................................................... 24[5.12]

Notice of Significant Legal Proceedings. ................................................................... 25

[5.13] Alterations or Additions to Common Area. ................................................................ 26

ARTICLE 6 ASSESSMENTS

[6.1] Assessments Generally. .............................................................................................. 26

[6.2]

Regular Assessments. ................................................................................................. 27[6.3] Special Assessments. .................................................................................................. 29

[6.4] Reimbursement Assessments. .................................................................................... 30[6.5] Purpose and Reasonableness of Assessments. ............................................................ 31[6.6]

Exemption of Certain of the Properties From Assessments. ...................................... 32

[6.7] Notice and Procedure for Member Approval. ............................................................ 32[6.8] Maintenance of Assessment Funds. ............................................................................ 32[6.9]

Collection of Assessments; Enforcement of Liens. .................................................... 33

[6.10] Transfer of Condominium by Sale or Foreclosure. .................................................... 35[6.11] Priorities. ..................................................................................................................... 36[6.12] Unallocated Taxes....................................................................................................... 36

[6.13]

Assignment of Rents. .................................................................................................. 36[6.14] Waiver of Exemptions. ............................................................................................... 37

[6.15] Delinquent Assessments/Small Claims Court. ........................................................... 37[6.16]

Reserves and Reserves Study. .................................................................................... 37

[6.17] Allocation of Regular and Special Assessments......................................................... 39[6.18] Estoppel Certificate..................................................................................................... 39

ARTICLE 7 - ARCHITECTURAL REVIEW

[7.1] Architectural Review Committee. ............................................................................ 39

[7.2]

Approval. .................................................................................................................... 40

[7.3] Completion of Work. .................................................................................................. 41[7.4] Non-Liability. ............................................................................................................. 41[7.5] Enforcement. ............................................................................................................... 41[7.6] Boards Authority. ...................................................................................................... 42[7.7] Governmental Approval. ............................................................................................ 42


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ARTICLE 8 INSURANCE

[8.1] Liability Insurance. ..................................................................................................... 42[8.2] Association Property Insurance. ................................................................................. 42[8.3] Cancellation. ............................................................................................................... 43

[8.4]

Board's Authority to Revise Insurance Coverage. ...................................................... 43

[8.5] Periodic Insurance Review. ........................................................................................ 44[8.6] Insurance Trustee. ....................................................................................................... 44[8.7] Owners Property Insurance. ...................................................................................... 44[8.8]

Other Insurance. .......................................................................................................... 45

ARTICLE 9 DAMAGE, DESTRUCTION OR CONDEMNATION

[9.1] Damage of Single Unit. .............................................................................................. 45[9.2] Damage to Two or More Units or Common Area. ..................................................... 45

[9.3]

Condemnation of Common Area. ............................................................................... 46[9.4] Appraisals. .................................................................................................................. 47

ARTICLE 10 RIGHTS OF AND PROTECTION FOR

MORTGAGEES AND TRUST DEED BENEFICIARIES

[10.1] Definition. ................................................................................................................... 47[10.2]

Limitations. ................................................................................................................. 47

[10.3] Partition of Unit. ......................................................................................................... 48[10.4] Books. ......................................................................................................................... 48

[10.5]

Damage or Destruction. .............................................................................................. 48

[10.6] Condemnation. ............................................................................................................ 48[10.7] Right of First Refusal. ................................................................................................. 49[10.9] Foreclosure.................................................................................................................. 49[10.10] Reserve Fund. ............................................................................................................. 49[10.11] Notice of Default. ....................................................................................................... 49

ARTICLE 11 AMENDMENTS

[11.1] Amendment. ................................................................................................................ 49

[11.2]

Special Amendment Requirements. ............................................................................ 50


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ARTICLE 12 - MISCELLANEOUS PROVISIONS

[12.1] Headings. .................................................................................................................... 50[12.2] Severability. ................................................................................................................ 50[12.3] Cumulative Remedies. ................................................................................................ 50

[12.4]

Discrimination. ........................................................................................................... 50

[12.5] Access to Books. ......................................................................................................... 51[12.6] Notification of Sale. .................................................................................................... 51[12.7] Number and Gender. ................................................................................................... 51[12.8]

Reservation or Grant of Easements. ........................................................................... 51

[12.9] Incorporation of Exhibits. ........................................................................................... 51[12.10] Enforcement Rights and Remedies. ............................................................................ 51[12.11] Dispute Resolution Procedure. ................................................................................... 52[12.12] Alternative Dispute Resolution. .................................................................................. 54[12.13] Term. ........................................................................................................................... 54[12.14] Attorneys Fees. .......................................................................................................... 55

[12.15]

Notices. ....................................................................................................................... 55

[12.16] No Enforcement Waiver. ............................................................................................ 55


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FIRST RESTATED DECLARATION OF COVENANTS, CONDITIONS AND

RESTRICTIONS OF THE PERALTA CREEK TOWER OWNERS ASSOCIATION

The original Declaration of Covenant, Conditions, and Restrictions for the Peralta Creek

Tower Owners Association, executed by Peralta Creek Towers, a general partnership(Declarants) which was recorded on December 24, 1981 which affects all of the Propertiesdescribed and commonly known as the Peralta Creek Tower Owners Association, are herebyamended and restated in their entirety to read as follows:

RECITALS

[R1] Declarants were the original owners of that certain real property (Properties)located in the City of San Leandro, County of Alameda, State of California, a condominiumdevelopment, which is more particularly describedas:

Lot 1, as shown in that certain Subdivision Map entitled Tract 4508, recorded in theOffice of the Recorder of Alameda County, State of California, on the 20 thday of November,1980, in Book 122 of Maps at Pages 79 and 80 (hereinafter referred to as the the Map).

[R2] Declarants conveyed the Properties, subject to certain easements, protectivecovenants, conditions, restrictions, reservations, liens and charges as set forth in the OriginalDeclaration referred to above, all of which are for the purpose of enhancing and protecting thevalue, desirability and attractiveness of Properties and all of which shall run with the Propertiesand be binding on all parties having or acquiring any right, title or interest in the Properties, orany part thereof, their heirs, successors and assigns, and shall inure to the benefit of each Ownerthereof.

[R3] It was the further intention of the Declarants to sell and convey residentialcondominiums originally constructed by Declarants to the Owners, subject to the protectivecovenants, conditions, restrictions, limitations, reservations, grants of easements, rights, rights-of-way, liens, charges and equitable servitudes between Declarants and such Owners which areset forth in this Declaration and which are intended to be in furtherance of a general plan for thesubdivision, development, sale and use of the Properties as a condominium project as thatterm is defined in section 4125 of the California Civil Code. Finally, it was the intention ofDeclarants that the Common Areas and Common Facilities be owned and maintained bythe Association, but reserved exclusively for the use and enjoyment of the Members of theAssociation, their tenants, lessees, guests and invitees, all subject to the terms and conditions ofthe Governing Documents.

[R4] On ________________, 2014, at least seventy-five percent of the Owners ofcondominium units within the Properties voted by written ballot to amend and restate theDeclaration of Covenants, Conditions, and Restrictions (Declaration), all in accordance with theprocedures for amendment set forth in the Declaration. The Owners action to amend and restatethe Declaration as set forth herein and the fact that the requisite percentage of affirmative votes


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required in the Declaration was achieved, is attested by the execution of this First RestatedDeclaration by duly authorized officers of the Association, as required by California Civil Codesection 4270(a). As so amended and restated, the easements, covenants, restrictions andconditions set forth herein shall run with the Properties and shall be binding upon all partieshaving or acquiring any right, title or interest in the Properties or any portion thereof, and shall

inure to the benefit of each Owner thereof.

ARTICLE 1 - DEFINITIONS

Unless the context indicates otherwise, the following terms shall have the followingdefinitions:

[1.1] Architectural Review Committee. The Architectural Review Committeedescribed in Section 7.1.

[1.2] Articles. The term Articles shall mean the Articles of Incorporation ofthe Association and any amendments thereto.

[1.3] Assessment. Any Regular, Special or Reimbursement Assessment made orassessed by the Association against an Owner and his or her unit in accordance with Article 6of this Declaration.

[1.4] Association. The term Association shall mean and refer to Peralta CreekTower Owners Association, a California nonprofit mutual benefit corporation.

[1.5] Balconies. The term Balcony shall mean those portions of the Common Areaadjacent to a Unit and separately designated on the Plan as individually numbered parcelspreceded by the letter B. An exclusive appurtenant easement for the use and possession ofeach Balcony shall be granted to the Unit which bears a corresponding number. The Boundarylines of each Balcony are to the interior unfinished surfaces of the floor and railingencompassing the Balcony, to the approximate dimensions shown on the Plan and to theairspace encompassed therein.

[1.6] Board. The term Board shall mean the Board of Directors of the Association.

[1.7] By-Laws. The term By-Laws shall mean the By-Laws of the Associationand any amendments thereto.

[1.8] Common Area. The term Common Area shall mean all of the Projectdescribed on the Plan which is not included within any Unit. Common Area shall include, butnot be limited to, roofs, foundations, pipes, ducts, flues, chutes, floors, bearing walls, columnsand girders to their unfinished surfaces, all regardless of location, carports, parking spaces, patiogardens, service and equipment areas, driveways, open spaces, planted and landscaped areas,


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balconies and all other improvements which may be placed upon or located in the CommonArea.

[1.9] Condominium. A Condominium shall mean the entire property to beconveyed by the deed to a grantee, including a Unit, an undivided interest in the Common Area,

and all easements appurtenances thereto, as more particularly defined in Section 4125 of theCivil Code of the State of California.

[1.10] Declarants. The term Declarant shall mean and refer to Peralta CreekTowers, a general partnership, or any successor or assign that assumes in writing the rights andduties of the Declarants hereunder.

[1.11] Declaration. The term Declaration shall mean and refer to this Declarationof Covenants, Conditions, and Restrictions and any amendments or corrections thereto.

[1.12] Development. The term Development shall mean the condominium

development that is constructed on the Property and made subject to this Declaration, includingthe Condominiums and all other Improvements thereon.

[1.13] Director. The term Director shall mean and refer to a member of theBoard of Directors.

[1.14] Governing Documents. Governing Documents shall mean thisDeclaration, the Articles of Incorporation, the By-Laws and the House Rules.

[1.15] Improvements. Any fixtures affixed to any Property in the Developmentwithin the meaning of Civil Code Section 660.

[1.16] Map. The term Map shall mean that certain Subdivision Map entitled Tract4508, filed in Book 122 of Maps at Pages 79 and 80, Alameda County Records on November20, 1980.

[1.17] Member. A member of the Association.

[1.18] Mortgage. The term Mortgage shall mean a recorded mortgage or deed oftrust against one or more Condominiums in the Development.

[1.19] Mortgagee. The term Mortgagee shall mean a mortgagee under aMortgage or a beneficiary under a deed of trust recorded against a Condominium in theDevelopment.

[1.20] Owner. The record title owner or owners of a Condominium in theDevelopment.


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[1.21] Parking Space. The term Parking Space shall mean those portions of theCommon Area separately designated on the Plan as individually numbered parcels preceded bythe letters "PS, some or all of which may be granted as exclusive appurtenant easements to aUnit for purposes of parking passenger motor vehicles. Those Parking Spaces which are sogranted as exclusive appurtenant easements shall bear a number or numbers designated in the

individual grant deeds conveying a condominium to a Unit Owner. The Parking Spaces not sogranted as exclusive appurtenant easements shall either remain as unrestricted Common Areafor use in common with all Unit Owners, their families, tenants and guests, or shall, in thediscretion of the Board, be assigned to and for the exclusive use of a particular Unit Owner.Those Parking Spaces bearing the additional letter designation "C shall be for the parking ofthose passenger motor vehicles commonly referred to as compact cars. Those Parking Spacesbearing the additionally letter designation H shall be reserved for the parking of motorvehicles which have either license plates beginning with the letters WDP or DP followed byV, X, Y or Z or which display a handicap placard issued by the California Departmentof Motor Vehicles. The boundary lines for each Parking Space shall be as set forth on the Planand to the airspace encompassed within such boundaries.

[1.22] Patio Garden. The term Patio Garden shall mean those portions of theCommon Area adjacent to a Unit and separately designated on the Plan as individuallynumbered parcels preceded by the letter P. An exclusive appurtenant easement for the useand possession of each Patio Garden shall be granted to the adjacent Unit bearing acorresponding number. The boundary lines for each Patio Garden shall be to the interiorunfinished surfaces of the fences surrounding the Patio Garden, to the approximate dimensionsset forth on the Plan and the airspace encompassed therein.

[1.23] Plan. The term Plan shall mean that certain Condominium Plan entitledCondominium Plan, Tract 4508, prepared in accordance with Section 4285 of the CaliforniaCivil Code, and attached hereto as Exhibit A.

[1.24] Project. The term Project shall mean the entire parcel of real propertydescribed on the Map, including all structures thereon.

[1.25] Restricted Common Area. The term Restricted Common Area shall meanthose portions of the Common Area, the exclusive use of which is set aside, allocated andrestricted to a particular Unit or Unit Owner. Said exclusive easement may but need not bespecifically designated in the individual grant deed conveying a Unit to a Unit Owner.

[1.26] Rules. The term Rules shall mean the rules or regulations adopted by theBoard from time to time pursuant to the authority of Section 5.6(ii).

[1.27] Unit. The term "Unit" shall mean the elements of a Condominium not owned incommon with the Owners of other Condominiums in the Project. Each Unit is an individualresidence which is shown, defined and delineated on the Plan as an individually numberedparcel.


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The boundaries of each Unit shall be the following: the interior unfinished surfaces(exclusive of paint, paneling, wallpaper or other finishes) of the floors, ceilings, interior beamsand columns, perimeter walls, bearing walls, doors, door frames and trim, and the interiorunfinished surfaces and/or exposed surfaces of the fireplaces, if any, of said Unit. The Unit shallinclude the air space so encompassed by said boundaries, excluding all load bearing walls and

all walls containing any utility conduit to the unfinished surfaces of any such walls. Each Unitspecifically includes the oven, garbage disposal unit, dishwasher, heating conduits, range andfans, interior partitions, fireplaces and plumbing fixtures installed therein. In interpreting deeds,Declarations and Plans, the existing physical boundaries of the Unit, or of the Unit as may bereconstructed in substantial accordance with the original plans thereof, shall be conclusivelypresumed to be its boundaries rather than the meets and bounds (or other description) expressedin the deed, Plan or this Declaration, regardless of settling or lateral movement of the buildingsand regardless of variance between boundaries shown on the Plan or the Deed and theDeclaration and those of the buildings.

[1.28] Unit Owner or Owner. Unit Owner or Owner shall mean the holder(s) of

record fee title to a Condominium. Such term shall include the contract purchaser, under aninstallment land contract and shall exclude those persons having an interest in a Unit merely assecurity for performance of an obligation. Unit Owner shall include any such grantee orgrantees in the deed conveying a Condominium, including any person, trust, estate, partnershipor corporation.

ARTICLE 2 - PROPERTY RIGHTS AND EASEMENTS

[2.1] Type of Development. This Development is a condominium projectwithin the meaning of California Civil Code Section 4125 and shall consist of 42Condominiums.

[2.2] Condominium. Each Owner shall own a fee interest in a Condominiumconsisting of a separate interest in a Unit as defined in Section 1.27 and an undivided equalinterest in common in the Common Area described in Section 1.8. In addition, each Ownershall be a Member of the Association.

The Unit and the Common Area appurtenant thereto may not be separated. Any transferof a Unit automatically shall transfer the Common Area appurtenant thereto regardless ofwhether the instrument of transfer describes the Common Area. Any conveyance, encumbrance,judicial sale, or other transfer (voluntary or involuntary) of an interest in the Common Areashall be void unless the Unit appurtenant thereto is also transferred.

[2.3] Common Area Rights. Each Owner or tenant and their family membersand guests have nonexclusive rights to use, enjoy, ingress and egress in, to and throughout theCommon Area and any Improvements thereon, subject to the provisions of Section 2.7and theExclusive Use Common Area rights as described in Section 2.10.


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[2.4] Common Area Ownership. There shall be conveyed with each respectiveUnit an undivided one/forty-second (1/42) tenancy-in-common interest in the Common Area.The undivided interest in the Common Area is established hereunder and to be conveyed withrespective Units cannot be changed, and Declarant, its successors and assigns and grantees,covenant and agree that the undivided interest in the Common Area and the fee title to the

respective Units conveyed there with shall not be separated or separately conveyed, and eachsuch undivided interest shall be deemed to be conveyed or encumbered with its respective Uniteven though the description in the instrument of conveyance or encumbrance may refer only tothe fee title to that Unit.

[2.5] Restricted Common Area. The ownership of the Common Area shall besubject to the exclusive easement established in Article 2for the benefit of each Unit Owner foruse and possession of the Balcony or Patio Garden adjacent to his Unit and for the ParkingSpace set forth in the grant deed to said Unit. An exclusive easement for the use and possessionof not less than one (1) Parking Space shall be granted for the individual use of each UnitOwner, subject to the Rules regulating the use and allocation thereof as established by the

Association. All Parking Spaces not granted or assigned to individual Unit Owners shall remainas unrestricted Common Area for the use in common of all Unit Owners subject to the Rulesregulating their use.

(A) Balconies and Patio. Each Unit and Unit Owner shall have an exclusive easement,and such exclusive easement is hereby granted, for the use, possession and enjoyment of anyBalcony and/or Patio bearing the same number as the Unit as shown on the Plan. Said exclusiveeasement shall be subject, however, to the right of the Association to enter in and upon saidBalcony and/or Patio for the purposes of maintaining and repairing the same, pursuant to thisDeclaration, and enforcing the terms hereof.

(B) Parking Spaces. Each Unit and Unit Owner shall have an exclusive easement, andsuch exclusive easement is hereby granted, for the use, possession and enjoyment of anyParking Space bearing the number of numbers to be designated on the individual Grant Deedconveying a Unit to a Unit Owner. Said exclusive easement shall be subject, however, to theright of the Association to enter in and upon said Parking Spaces for the purposes ofmaintaining and repairing the same, or any other portion of the Common Areas pursuant to thisDeclaration, and enforcing the terms hereof.

[2.6] Encroachment Easement. Each Condominium, or portion thereof, as thedominant tenement has an easement over any other Condominium, or portion thereof, as theservient tenement for the purpose of accommodating any encroachment of roof overhangs.porches, decks, staircases, windows, chimneys or other Condominium building Improvementsresulting from the original construction of the Improvements, settlement or shifting ofstructures, or minor construction changes during the course of construction, and anyencroachment authorized under Section 2.8. The extent of the encroachment easement shall bethe location of the encroaching structure as originally constructed by Declarant. If a structure ispartially or totally destroyed, the structure may be repaired or rebuilt in accordance with theoriginal plans, including the replacement of any encroaching Improvement.


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[2.7] Other Rights. Each Condominium shall be entitled to the benefits and/orsubject to the burdens of any easements, rights-of-way, or dedications as may be granted orreserved on the Map, any deed to the Condominium, or in any other appropriate public record.

[2.8] Appurtenant Rights. Each right or easement described in this Article 2

is a right or easement that is appurtenant to the Condominium, and any transfer of theCondominium automatically transfers the easement appurtenant thereto regardless of whetherthe instrument of transfer describes the right or the easement.

[2.9] Reservation of Rights. Notwithstanding any property rights, includingeasements, described herein, each Condominium is subject to each of the following:

(i) The right of the Associations agents to enter any Condominium to cure anyviolation or breach of this Declaration or the By-Laws or the Rules, provided that at least 30days prior written notice of such violation or breach (except in the cases of emergency) has beengiven to the Owner and provided that within the 30-day period such Owner has not acted to cure

such violation or breach;

(ii) The right of the Associations agents to enter any Condominium to perform itsobligations and duties under this Declaration, including the obligations and the duties withrespect to maintenance or repair of any Condominium; and

(iii)

The rights reserved in Sections 2.8, 2.9 and 12.8.

[2.10] Authority Over Common Area. The Board shall have the power and theright in the name of the Association and all of the Owners as their attorney-in-fact to grant,convey or otherwise transfer to any Owner or any other Person fee title, easements, exclusiveuse easements or rights, rights-of-way and/or dedications in, on, over or under the CommonArea, in order to: (i) construct, erect, operate, maintain or replace lines, cables, wires, conduitsor other devices for electricity, cable television, power, telephone and other purposes, publicsewers, storm water drains and pipes, water systems, sprinkling systems, water, heating and gaslines or pipes and any similar public or quasi-public Improvements or facilities; (ii)accommodate any encroachment that in the sole discretion of the Board does not unreasonablyinterfere with the use and enjoyment of the Common Area; or (iii) accomplish any otherpurpose that in the sole discretion of the Board is in the best interest of the Association and itsMembers and does not unreasonably interfere with the use and enjoyment of the Common AreaEach Owner in accepting a deed to a Condominium expressly consents to such action andauthorizes and appoints the Association as attorney in-fact of such Owner to execute and deliverall documents and interests to accomplish the action, including, but not limited to, grant deeds,easements, subdivision maps, and lot-line adjustments. Notwithstanding anything herein to thecontrary, in no event shall the Board take any action authorized hereunder that wouldpermanently and unreasonably interfere with the use, occupancy and enjoyment by any Ownerof his or her Condominium or any Exclusive Use Common Area without the prior writtenconsent of that Owner. Furthermore, the conveyance of fee title to any portion of theCommon Area as authorized in this Section 2.10shall require the consent of a majority of the


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total voting power of the Association and such consent of the Mortgagees as may be required by

Article 10.

[2.11] Delegation of Use Rights. An Owner's family members and guests and anysuch Persons as may be permitted by the Rules may use and enjoy any Common Area

Improvements. All such use shall be subject to restrictions contained in this Declaration and theRules. If an Owner rents or leases his or her Condominium, the Owner, members of theOwners family, and the Owners guest shall not be entitled to use any Common AreaImprovements. Such rights may be enjoyed by the tenant and the tenant's family members andguests during the term of the rental agreement or lease. Any Owner who rents or leases his orher Unit must comply with requirements of Section 3.2.

[2.12] Restrictions on Partition. Except as authorized in Sections 2.5 and 9.3, theCommon Area shall remain undivided, and there shall be no judicial partition thereof except asmay be authorized by California Civil Code Section 4610 or any successor statute thereto. Anyproceeds or property resulting from a partition shall be distributed to and among the respective

Owners and their Mortgagees as their interests appear in proportion to the ratio that the fairmarket value of each Owners Condominium bears to the fair market value of all OwnersCondominiums as of the date immediately preceding the date of the event giving rise to theright of the Owners to partition the Common Area.

ARTICLE 3 - RESTRICTIONS

[3.1] Use of Unit. Each Unit shall be used for residential purposes and no otheruses shall be allowed except as noted below. The number of permanent residence in any Unitshall be limited to two (2) per bedroom. Owners may have a reasonable number of additionalpersons as guests as long as the period such guests occupy the Unit does not exceed ninety (90)consecutive days in duration nor more than one hundred twenty (120) days in any calendar year.No business or other activity entered into for profit or gain of any kind whatsoever shall beestablished, maintained, operated, permitted or conducted on the Project, or any portion thereof,except such professional and administration professions as may be permitted by city ordinance,provided there is no external evidence thereof and provided there is not generated a flow ofpublic to and from the Project, and provided further that the primary use of the occupancy of allUnit shall be for single-family residence purposes.

[3.2] Use of Parking Space. There shall be no use or occupancy of a Parking Spaceexcept by the Owner of the Unit to which such Parking Space has been conveyed or by thetenants or guests of such Owner. Parking Spaces shall be used only for the parking of passengermotor vehicles. Any Parking Spaces not assigned or conveyed to Unit Owner shall be used byOwners, tenants and guests of Owners in accordance with the Rules. No Unit Owner shallobstruct, block or interfere with the access of any other Unit Owner to his Parking Space. Thereshall be no parking on the private streets or driveways of the project by Unit Owners, theirguests or tenants except in spaces particularly designated for such parking, if any, and only incompliance with the Rules.


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[3.3] Rental of Units.

(a) Priority. The right of an Owner to lease his or her Residential Unit within the30% of Residential Units allowable under this Section 3.3, shall be determined on the basis ofthe date if the request to lease the Owner's Residential Unit; and the Residential Unit Owner

who first submits a written request to lease their Residential Unit shall have the priority andright to lease his or her Residential Unit over a Residential Unit Owner who submitted theirrequest on a later date. No Owner shall be allowed to lease their Residential Unit until theyhave owned the Residential Unit for a period of at least one year.

(a) Grandfather Provisions. Any Owner who is leasing his or her Residential Unitat the time this First Restated Declaration of Covenants, Conditions and Restrictions is adoptedshall be allowed to do so until that Residential Unit is sold or remains not leased for a period ofsixty consecutive days. At that time, the Residential Unit shall be considered Owner occupiedand should the Owner desire to lease their Residential Unit again, they must request that theBoard of Directors add their name to the Wait List described in subsection (c) (iii) below and

follow the procedure noted in subsection (d)(iv) below. In the case of a Residential Unitremaining not leased for a period of sixty consecutive days, the Owner may petition the Boardof Directors for a thirty (30) day extension. The Board of Directors shall then determinewhether the interests of the petitioning Owner or Owner next of the Wait List takes precedent.The decision of the Board of Directors will be considered final.

(b)

Exception. Any Record Owner shall have the right, in the case of hardship dueto special circumstances to petition the Board of Directors, to lease his or her Residential Unitfor a limited term, if such Owner represents that he or she shall return to the Residential Unitwithin a reasonable time and again take possession as a resident Owner; or in the alternative byoffering the Residential Unit for sale; and such limited lease shall be permitted by the Board ofDirectors without regard to the 30% maximum set forth in this Section 6.7 provided, however,that the Board of Directors must have first approved of such leasing in writing, as described inSubsection 4 following, in order to verify the representations made by the requesting RecordOwner.

(c)

Procedure.

(i) Each Owner of a Residential Unit shall have the right, upon writtennotice delivered to the Secretary of the Association, to appear before the Board of Directors andrequest the right to lease his or her Residential Unit.

(ii) The Board of Directors shall prepare a list of all Owners currently leasinghis or her Residential Unit, which list shall include the Owners name, mailing address, Unitnumber, Unit address, date of recorded ownership, and lease term; and such list shall be madeavailable to all Owners upon request.


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(iii) The Board of Directors shall also prepare a Waiting List of thoseRecord Owners who have requested to lease their Residential Unit, which list shall include thename, mailing address, Unit number and record date of ownership.

(iv) Any Owner desiring to lease his or her Residential Unit shall submit such

request in writing to the Board of Directors, which Request shall contain the followinginformation: name, mailing address, Unit number and record ownership date of the Owner;proposed lease term, type of tenant intended if known (family, individual, couple, etc.) and anyother information which the Board of Directors may reasonably require from time to time.

(v) Within forty-five (45) days of receipt of such Request to Lease, the Boardof Directors shall review such Request, and approve or disapprove of the Request in writingdelivered to the requesting Owner, which, if disapproved, shall specify the exact reason orreasons therefor.

(vi) If the Lease Request is disapproved, the Record Owner concerned shall

have a right to rehearing upon written notice to the Board of Directors, at its next regularmeeting, or as otherwise agreed upon between the parties. The Owner shall have the right toappear at the rehearing and present his or her case; and on termination of such rehearing, theBoard shall deliver its written finding to the requesting Owner with ten (10) days thereafter;and, if again disapproved, specify the reasons of such disapproval.

(vii) If the Board of Directors fails to either approve or disapprove of theproposed Lease within said forty-five (45) day period, the Lease shall be automatically deemedapproved.

(viii) The decisions of the Board of Directors in approving or disapproving aRequest of Record Owner to lease his or her Lot shall be absolute, unless in clear violation ofthis Section 6.7; and the Board shall have the right and power to promulgate and implementreasonable regulations for the supervision and conduct of either the leases or tenants thereunder.

Any lease of a Residential Unit shall state in writing that it is made subject to thecovenants, conditions and restrictions, limitations and uses contained in this Declaration as wellas the rules and regulations established by the Association. Additionally, any lease of aResidential Unit is contingent upon the Owner providing the Board of Directors with a copy ofthe signed lease and contact information for each tenant to reside in the Residential Unit.

[3.4] Nuisance. No Unit Owner may permit or cause anything to be done or keptupon, in or about any Unit or Common Area that constitutes a nuisance, disturbance of thepeace or illegal activity, as governed by California law or unreasonably interferes with the useor quiet enjoyment of the occupants of any other Condominium. Each Unit Owner shall complywith all the requirements of all governmental authorities, federal, state and local, and all laws,ordinances, Rules, and regulations applicable to his Unit.


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[3.5] Vehicle and Parking Restrictions. No boat, mobile home, recreationalvehicle, motor home, trailer of any kind, truck camper other than a bed-mounted campermounted on a one half or three-quarter ton pickup truck, truck larger than a three-quarter tonpickup truck, commercial vehicle of any kind or dilapidated vehicle shall be parked or left inany part of the Project. There shall be no repair or reconstruction of automobiles within the

Project except for emergency vehicle repairs. The Association may remove or cause to beremoved any unauthorized vehicle at the expense of the Owner thereof in any manner notinconsistent with the law

[3.6] Towing Authority. The Association has installed a sign at the Guest Parkingentrance to the Development containing a statement that public parking is prohibited and that allvehicles not authorized to park within the Development will be removed at the ownersexpense. The sign shall contain the telephone number of the local traffic law enforcementagency and shall not be less than 17 inches by 22 inches in size and the lettering not less thanone inch in height.

The Association may cause the removal of any vehicle wrongfully parked within theDevelopment, including a vehicle owned by an occupant. If the identity of the registered ownerof the vehicle is known or readily ascertainable, the President of the Association or his or herdesignee, within a reasonable time thereafter, shall notify the owner of the removal in writingby personal delivery or first-class mail. In addition, notice of the removal shall be given to thelocal traffic law enforcement agency immediately after the vehicle has been removed. Thenotice shall include a description of the vehicle, the license plate number, and the address fromwhere the vehicle was removed. If the identity of the owner is not known or readilyascertainable and the vehicle has not been returned to the owner within 120 hours after itsremoval, the Association immediately shall send or cause to be sent a written report of theremoval by mail to the California Department of Justice in Sacramento, California, and shall filea copy of the notice with the proprietor of the public garage in which the vehicle was stored.

The report shall be made on a form furnished by the Department of Justice and shallinclude a complete description of the vehicle, the date, time and place from which the vehiclewas removed, the amount of mileage on the vehicle at the time of removal, grounds forremoval, and the place where the vehicle is stored.

Notwithstanding the foregoing, the Association may cause the removal, without notice,of any vehicle parked in a marked fire lane, within 15 feet of a fire hydrant, in a parking spacedesignated for handicapped without proper authority, or parked in a manner which interfereswith any entrance to, or exit from, the Development or any Condominium, parking space orcarport located thereon. The Association shall not be liable for any damages incurred by thevehicle owner because of the removal in compliance with this section or for any damage to thevehicle caused by the removal unless such damage resulted from the intentional act of any agentof the Association. If requested by the owner of the vehicle, the Association shall state thegrounds for the removal of the vehicle.


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Unless the Board provides otherwise, any director or officer, any manager or managersagent or any Owner authorized to do so by any director or officer shall have the authority to acton behalf of the Association to cause the removal of any vehicle wrongfully parked within theDevelopment.

The provisions of this Section 3.6 are intended to comply with Vehicle Code section22658.2 in effect as of January 1, 1998. If this Vehicle Code section is amended, this provisionautomatically shall be amended in the same manner. If this section is repealed and no successorsection is enacted, this provision shall remain in full force and effect. Vehicle Code section22658.2 may have been amended by the State legislature, and the Board should confirm thecurrent statutory requirements.

[3.7] Animals. No animals of any kind shall be maintained, bred or kept in anyUnit or in the Common Area except that dogs, cats or other customary household pets inreasonable number and size may be; provided, however, that they are not kept, bred ormaintained for any commercial purposes, and provided further, that the House Rules may limit

or restrict the keeping of any such pets. For purposes of this paragraph, a reasonable number ofpets shall be deemed to be limited to two (2) and reasonable size shall be limited to twenty-five(25) pounds unless otherwise determined by the Board. The Owner shall prevent their pet fromrunning loose upon the Common Area. Owner shall prevent their pet for making excessivenoise and from soiling walks, paths, patios, courtyards, and all portions of the Common Areawhere other persons customarily walk. Each Owner shall be financially responsible for anydamage caused by the pet.

The Association shall specifically have the right to prohibit the maintenance of any petwhich, in the opinion of the Board after notice and hearing, constitutes a nuisance to any UnitOwner or Owners. The Owner shall restrict the activities of any pet such that the pet is underthe physical control of the Owner at any time the pet is outside of the Unit. Dogs must beleashed in the Common Area. The Owner shall at all times be responsible for the immediatecleaning up and disposing of any pets bodily waste.

[3.8] Television or Radio Equipment. Installation of a radio, video, or televisionantenna, including a satellite dish, designed to receive television signals that is or will belocated on the property within the exclusive use or control of the antenna user, and that is nototherwise prohibited by law, must be within applicable requirements of California Civil CodeSection 4725 and the Code of Federal Regulations, 47 CFR Section 1.4000, or comparablesuperseding statutes or regulations. As allowed by applicable law, the Board may requestnotification prior to installation of such radio, video, or television antenna, including a satellitedish.

The Board may disallow installation of antennas or satellite dishes with a diameter ordiagonal measurement exceeding one meter, or with a height more than 12 feet above the roofline and/or require that installation be to a height that the antenna, if it topples, will be whollycontained within the owner's property. As allowed by applicable law, the Board may prohibitinstallations of individual antennas or satellite dishes when the Association has installed a


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central system. As allowed by applicable law, the Board may disallow installation of antennasor other devices that are not designed to receive television signals. As allowed by applicablelaw, the Board may enforce reasonable painting or other camouflage requirements providedsuch requirements do not impair reception or place an unreasonable financial burden on theOwner. As allowed by applicable law, the Board may establish and enforce collection powers

that allow the Association to recover for any resulting Association property damage and othercosts arising from harm caused by an Owner's installation of such installed antennas or satellitedishes. Such powers of the Board to levy a Reimbursement Assessment are pursuant to Section6.4 below. As allowed by applicable law, the Board may establish and impose penalties onOwners who violate this section and applicable Rules. The Board has the authority to requirethat any contractor installing any antenna or satellite dish provide appropriate proof of liabilityand workers compensation insurance prior to commencing work, and require that suchcontractor agree in writing to indemnify and defend the Association from any claims arising outof or in connection with his work.

[3.9] Signs. No sign of any kind shall be displayed to the public view on or from any

Unit or the Common Area without the prior consent of the Board, except one sign of reasonabledimensions (as determined by the local governing body) may be placed at a central locationwithin the Common Area previously designated by the Association, or upon the Unit itself if theAssociation has not designated such a central location, advertising a Condominium for sale orrent and the Association may maintain and display such signs as he Board may deemappropriate identifying the Project. Any such sign shall be attractive and compatible with thedesign of the project and shall comply with the applicable City ordinances. Notwithstanding theforegoing, any Unit Owner and the Association may maintain any sign required by legalproceedings.

[3.10] Trash Removal and Storage. All garbage, trash and accumulated wasteplant material shall be placed and kept in covered containers, and such containers shall bemaintained in enclosures designated by the Association for such purpose. In no event shall suchcontainers be maintained so as to be visible from neighboring property, nor within view fromany street or other area used by the public or in common with other Unit Owners. No portion ofany Unit shall be used for the storage of building materials or other materials other than inconnection with approved construction. The Board may adopt Rules regulating the trashcollection sites, recycling and the collection and storage of organics. Under no circumstanceshall any discarded furniture, mattresses, clothing, books, electronics or food be left in theLobby of the Properties, near recycling bins, or trash container.

[3.11] Use of the Common Areas. There shall be no use of the Common Areasexcept by the Unit Owners thereof, their invitees, guests or tenants. There shall be noobstruction of any part of the Common Areas. Nothing shall be stored, kept, or parked in theCommon Area, except for the Restricted Common Area without the prior consent of theAssociation. No storage closet, locker, shed or facility of any kind shall be built, placed, or keptin any part of the Common Area (included Restricted Common Area) without the prior approvalof the Association.


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Nothing shall be done or kept in the Common Areas, including Restricted CommonArea, which will increase the rate of insurance on any of the Common Area without the priorwritten consent of the Board. No Unit Owner shall permit anything to be done or kept in theCommon Areas which will result in the cancellation of insurance on any Unit or any part of theCommon Areas or which would interfere with the rights of other Unit Owners or which would

be noxious, harmful or unreasonably offensive to other Unit Owners or which would be inviolation of any governmental statute, ordinance, rule or regulation. No waste shall becommitted in the Common Area or Restricted Common Area.

[3.12] Use of Units. No Unit Owner may permit or suffer anything to be done or keptupon in or about his Unit which will obstruct or interfere with the rights of other Unit Owners orannoy other Unit Owners by unreasonable noise, smell or otherwise, or which will be noxious,harmful or unreasonably offensive to other Unit Owners. Each Unit Owner shall comply withall of the requirements of all governmental authorities, federal, state and local, and all laws,ordinances, rules and regulations applicable to his Unit.

[3.13] Structural Integrity. Nothing shall be done in any Unit or in, on or to theCommon Area which will impair the structural integrity of the Project or which wouldstructurally alter the Project except as is otherwise provided herein. No development shall bemade of the air space or crawl space above any Unit or the Common Areas, without the priorapproval of the Board.

[3.14] Alterations, Modifications or Additions. There shall be no alterations,modifications or additions made to any Condominium or any Improvement thereon except incompliance with the provisions of Article 7.

[3.15] Clotheslines. No clotheslines or other outside clothes drying facilities shall beplaced or maintained outside of any Unit, or maintained on a deck, balcony, patio, or any otherportion of the Common Area, including Restricted Common Area, or any other place on theoutside of a Unit..

[3.16] Guests and Lessees. No person who is not an Owner in the Project shall bepermitted within the Project without the specific consent of an Owner. Each Owner shall at alltimes be responsible for the conduct of all non-Owners present within the Project with saidOwners consent.

[3.17] Storage. Nothing shall be kept or stored in any elevator, walkway, driveway,parking space, hallway, entry alcove, lobby, stairway or other area adjacent or appurtenant toany Unit, nor shall any unsightly or offensive item or material be placed or kept on any deck,patio or balcony or any Unit so as to be visible from the Common Area or any other Unit.

[3.18] Fires. There shall be no exterior fires whatsoever, except barbecue fires andlighting devices, contained within receptacles properly designed and maintained for suchpurpose. Unit Owners with fireplaces, if any, may utilize said fireplaces but only in a manner so


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as to not injure or damage any chimney or lose forming a part of the Common Area, or to causesparks which could damage any part of the Project.

ARTICLE 4 - MAINTENANCE AND REPAIR OBLIGATIONS

[4.1] Owners Maintenance and Repair Obligations.

The Association shall have the exclusive right to contract for all goods and services,payment for which is to be made from the maintenance fund. Each Unit Owner shall have theexclusive right, at his sole cost and expense, to maintain, repair, paint, paper, panel, plaster, tileand finish the interior surfaces of the ceilings, floors and the perimeter walls of his Unit, thesurfaces of the bearing walls located within said Unit and the surfaces of any other finishesowned by the Unit Owner as herein defined. Said Owner shall have the exclusive right tosubstitute new finished surfaces for the finished surfaces then existing on said ceilings, floorsand walls, including, without limiting the generality of the foregoing, the following: substitution

of paint for paper or paper for paint, substitution of any type of paneling for plaster or plasterfor paneling, substitution of tile for paneling or paneling for tile or substitution of wood forlinoleum or tile for wood. Said Owners and their agent shall have the exclusive right tomaintain, repair, paint, finish, alter, substitute, add or remove any fixtures attached to saidceilings, floors or walls. The Unit Owner shall be responsible and liable for the maintenanceand replacement of the finishes of the interior walls, floors and ceilings. The maintenance andrepair of internal installations to the Unit, such as toilets, showers, bathtubs, sinks, kitchenappliances, telephone facilities, the connections thereto, doors, windows and all otheraccessories within the boundaries of the Unit shall be the responsibility and liability of the UnitOwner. Each Unit Owner shall clean and maintain the Balcony or Patio Garden adjacent to hisUnit; provided, however, that all painting of the exterior surfaces of such Balconies and Patioshall be the responsibility of the Association. This paragraph shall not be construed to permitany interference with or damage to the structural integrity of the building.

If any Owner fails to maintain his or her Condominium as required herein, theAssociation, after notice and hearing as described in the By-Laws, may, but is not obligated to,enter the Condominium and perform the necessary maintenance and repair. The Associationmay levy a reimbursement assessment against the Condominium in the manner described inSection 6.4.

[4.2] Maintenance and Care of Balconies and Patio. Each Owner who is grantedan exclusive easement for a Balcony or Patio Garden may landscape said Balcony or Patio inconformity to a plan approved by the Board and shall maintain and otherwise care for alllandscaping and other improvements located within such Balcony or Patio at said Owner' soleexpense. No Owner shall build, place or cause to be built or placed within his Balcony or Patioany structure without the prior written consent of the Board and, where applicable, the City inwhich the Project is located.


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[4.3] Associations Maintenance, Repair and Landscaping Obligations.

The Association shall have full power and authority to act for and on behalf of all of theUnit Owners to keep and maintain the Common Area (including Parking Spaces but excludingBalconies and Patio Gardens except to the extent permitted in Section 4.1) in good condition

and repair; shall provide for lighting, landscaping, gardening and janitorial services as needed,and shall cause any and all other acts to be done which may be necessary to assure themaintenance of the Common Area in first class condition and repair, including painting of theexterior of the building and all maintenance of Parking Spaces and such other portions of theCommon Area as the Board, in its discretion, determines to be necessary. The cleaning, repairand upkeep of Balconies and Patio Garden shall be the responsibility of the Unit Owner who isgranted the exclusive easement for the use thereof. Any costs incurred by the Association in thecourse of maintaining Restricted Common Area for which the Unit Owner is responsible, shallbe charged as a Reimbursement Assessment, pursuant to Section 6.4hereof, against the UnitOwner. No contract executed by the Board for materials or services for the Common Area shallexceed one year in duration unless the prior approval of a majority of the Members has first

been obtained by the Board.

The Association shall have the power to maintain and repair any Unit or RestrictedCommon Area to which an Owner has been granted an exclusive easement if such maintenanceor repair is necessary, in the discretion of the Board, to protect the Common Areas or preservethe appearance and value of the Project, and the Owner or Owners of said Unit or easement toRestricted Common Area have failed or refuse to perform said maintenance or repair within areasonable time after written notice of the necessity therefore and an opportunity to be heard onthe question prior to the Boards decision is given by the Board to said Unit Owner or Owners.The Board shall levy a Reimbursement Assessment against such Unit owned by said UnitOwner for the cost of said maintenance or repair.

[4.4] Cooperation and Access. Each Owner and occupant shall fully cooperatewith the agents of the Association in the performance of the Associations maintenance andrepair obligations described in Section 4.3 above. Such cooperation shall include, but is notlimited to, immediate notification to the Board or its managing agent of any maintenance orrepair problems for which the Association is responsible and access to the Owner or occupant'sCondominium as may be necessary to inspect and, if appropriate, to perform any necessarymaintenance or repairs.

[4.5] Reimbursement and Indemnification. If the Association incurs or expectsto incur any maintenance or repair costs because of the willful or negligent act or omission ofany Owner or occupant or their family members, guests, agents or pets, the Association shallcharge the cost to the Owner of the Condominium responsible for the costs and may levy areimbursement assessment as described in Section 6.4. The Owner immediately shall pay thecharge or reimbursement assessment to the Association, together with interest thereon at the rateof 12% per annum, but not in excess of the maximum rate authorized by law. If the Ownerdisputes the charge, the Owner shall be entitled to notice and a hearing as provided in Section5.6(iv). The Association shall not charge the Owner to the extent that the cost is met through


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insurance maintained by the Association. Any deductible amount shall be paid by the Owner. Ifthe Association charges the costs before the costs are incurred, the Association shall make anappropriate reconciliation on completion of the work; and any excess funds received shall berepaid to the Owner and any shortfall immediately shall be paid by the Owner. The Associationmay levy a reimbursement assessment to collect the shortfall as described herein.

Furthermore, the Owner shall defend, indemnify and hold the Association harmless fromany claim, demand, liability or cost, including attorneys' fees arising from such damage, exceptto the extent the demand, claim, cost or liability is covered by insurance maintained by theAssociation. The Owner shall pay the amount of any deductible.

ARTICLE 5 - THE ASSOCIATION

[5.1] Formation of the Association. The Association is a nonprofit mutualbenefit corporation formed under the laws of the State of California. The Association shall

commence operations no later than the date that assessments commence.

[5.2] Governing Body. The governing body of the Association shall be the Board.It shall be the responsibility of the Board to ensure that the Association exercises its rights andperforms its duties as described within the Declaration, the Articles, the By-Laws and anyamendments thereto.

[5.3] Membership. Each Owner of a fee title interest in a Condominiumautomatically shall be a Member of the Association. If there is more than one fee title Owner ofa Condominium, each Owner shall be a Member. The holder of a security interest in aCondominium shall not be a Member of the Association except and until that holder obtainsboth the legal and equitable interest in the Condominium. If any Owner executes an installmentcontract of sale for the sale of that Owner's Condominium, the purchaser shall become theMember if the contract is recorded in the public records and if the Association is notified inwriting of the contract; and the Owner no longer shall be a Member. If the purchaser's rights areterminated under the contract without transfer of title to the purchaser, the Board, upon receiptof satisfactory evidence of the termination of the purchaser's rights, shall reinstate the Owner asthe Member; and the purchaser shall no longer be a Member.

Membership shall be appurtenant to the Condominium and may not be separatedtherefrom. Any transfer of an Owner's interest in a Condominium (other than a securityinterest), by operation of law or otherwise, automatically transfers the membership to theOwner's successor in interest. No Owner may resign or revoke his or her membership for anyreason.

[5.4] Voting Rights. The Association shall have the following votingmembership:


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(i) All Owners shall be entitled to one vote for each Condominium in which he orshe owns an interest. If more than one Owner owns an interest in a Condominium, only onevote may be cast with respect to that Condominium.

(ii) Voting rights shall vest at the time that assessments, are levied against the

Owners Condominium. Except as otherwise provided in this Declaration, the Articles or theBy-Laws, and subject to the provisions of Section 5.11, all matters requiring the approval of theOwners shall be: (a) approved at a duly-called regular or special meeting at which a quorumwas present, either in person or by proxy, by Owners holding the majority of the total votingpower of all Owners present, either in person or by proxy; (b) approved by written ballot by amajority of the total voting power of the Owners pursuant to the requirements of CorporationsCode section 7513 or any successor statute thereto; or (c) approved by unanimous writtenconsent of all the Owners.

[5.5] Joint Ownership Votes. The vote that is attributed to each Condominiummay not be cast on a fractional basis. If the Condominium has more than one Owner and the

Owners are unable to agree as to how the vote shall be cast, the vote shall be forfeited on thematter in question. Any vote cast by an Owner for any Condominium is presumed conclusivelyto be the vote cast by all the Owners of that Condominium. If more than one Owner casts a voteattributed to a Condominium on any matter on which only one vote could be cast for thatCondominium, the votes cast by such Owners shall be counted as one vote if the votes are thesame; and if the votes are different, the vote cast by such Owners shall not be counted and shallbe forfeited.

[5.6] Powers of the Association. The Association shall have all the powers of anonprofit mutual benefit corporation organized under the general nonprofit mutual benefitcorporation laws of California, subject only to such limitations on the exercise of these powersas are set forth in the Articles, By-Laws and this Declaration. The Association shall have thepower to do any lawful thing that may be authorized, required or permitted to be done by theAssociation under this Declaration, the Articles and the By-Laws and to do and perform any actthat may be necessary or proper for or incidental to the exercise of any of the express powers ofthe Association, including without limitation, each of the following:

(i) The Board shall establish, fix and levy assessments against the Condominiumsand collect and enforce payment of such assessments in accordance with the provisionsof Article 6of this Declaration.

(ii) The Board may adopt, amend and repeal Rules as it considers appropriate. TheRules shall regulate the use and enjoyment of the Common Area and such other matters as areauthorized herein. A copy of the Rules as adopted, amended or repealed shall be mailed orotherwise delivered to each Owner; and a copy shall be posted in a conspicuous place within theDevelopment if an appropriate space is available for such posting. If any provision of thisDeclaration, the Articles or the By-Laws is inconsistent with or materially alters any Rules, theDeclaration, the Articles or the By-Laws shall control to the extent of any such inconsistency.


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Any Rules adopted by the Board shall apply to all Owners or occupants in a uniform andnon-discriminatory manner. The Board may adopt a Rule as the result of an act or omission ofany Owner or occupant or their family members or guests or a Rule that does not directly affectall Owners or occupants in the same manner as long as the Rule applies to all Owners oroccupants.

(iii) The Board may borrow money to meet any anticipated or unanticipated costs ofthe Association and, subject to the provisions of Section 5.11(v), may mortgage, encumber orpledge Association assets (including, but not limited to, assessments) as security for suchborrowing.

(iv) In addition to any other enforcement rights described in this Declaration and theBy-Laws or as may be authorized by law and subject to any restrictions on the Associationsenforcement rights, including any due process requirements imposed by this Declaration, theBy-Laws or by law, the Board may take any of the following actions against any Person whoseact or failure to act violates or threatens to violate any provisions of this Declaration, the By-

Laws or Rules: (a) impose monetary penalties, including late charges and interest; (b) suspendvoting rights in the Association; and (c) commence any legal or equitable action for damages,injunctive relief or both. Subject to the provisions of Section 12.10, the determination ofwhether to impose any of the foregoing sanctions shall be within the sole discretion of theBoard. Any legal action may be brought in the name of the Association on its own behalf andon behalf of any Owner who consents; and, except as otherwise provided herein, the prevailingparty in such action shall be entitled to recover costs and reasonable attorneys fees. The Board,in its sole discretion, may resolve or settle any dispute, including any legal action in which theAssociation is a party, under such terms and conditions as it considers appropriate.

If the Board adopts a policy imposing monetary penalties, the Board shall adopt anddistribute to each Member, by personal delivery or first-class mail, a schedule of the monetarypenalties that may be assessed. The Board may change the schedule from time to time and shalldistribute a notice of such changes to the Members in the same manner as the schedule ofpenalties. If requested by a Member being disciplined, the Board shall conduct the disciplinaryproceeding in executive session. In such session, the Member, and, if applicable, the Member'scounsel, and the Associations counsel shall be entitled to attend. In addition, the Board mayinterview witnesses and other appropriate parties to the disciplinary proceeding in executivesession. The provisions of this paragraph are intended to complywith the requirements ofCalifornia Civil Code Sections 5900 through 5920. If the provisions of Sections 5900through 5920 are amended or repealed in any manner, this paragraph automatically shall

beamended or repealed in the same manner. Under no circumstances may the Associationcause a forfeiture or abridgement of an Owners right to the full use and enjoyment of theOwners Unit on account of the failure of the Owner to comply with the provisions of theDeclaration, Articles, By-Laws or Rules, except by judgment of a court or decision of anarbitrator or on account of a foreclosure or sale under power of sale for failure of the Owner topay assessments duly levied by the Association.


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Before the Board imposes any monetary penalties (late fees and interest on delinquentassessments are not considered penalties subject to the due process requirements) or suspensionof membership rights or Common Area use privileges against any Member for failure to complywith the Declaration, these By-Laws or the Rules, the Board must act in good faith and satisfyeach of the following due process requirements:

(a) The Member must be given 15 days prior notice of the discipline to beimposed and the reasons for the imposition of the discipline. Notice may be given by anymethod reasonably calculated to give actual notice. If the notice is given by mail, it must be sentby first-class or registered mail to the last address of the Member as shown on the Association'srecords; and

(b) The effective date of the imposition of the discipline shall not occur untilat least five days after the Member has been given an opportunity to be heard orally or inwriting, by the Board. Members shall have the opportunity to present witnesses on theMembers behalf, to cross-examine any witnesses that may testify against the Member, and to

be represented by legal counsel.

(v) Except as may be limited by the By-Laws, the Board may delegate any of theAssociations powers and duties to its employees, committees or agents, including aprofessional management agent.

[5.7] Duties of the Association. In addition to the duties described in the Articlesor By-Laws, or elsewhere in this Declaration, the Association shall have the duty to manage theCommon Area; perform the maintenance as described in Section 4.3; prepare, periodicallyupdate, and comply with the maintenance and inspection guidelines described in Section 4.3;prepare and distribute financial statements, reports and copies of Governing Documents asdescribed in Section 5.10; enforce bonded obligations as described in Section 5.11; levy andcollect assessments as described in Article 6; prepare when required the reserve studiesdescribed in Section 6.16 and annually review and implement adjustments as required; andprocure, maintain and review the insurance as described in Article 8. The Association shallperform such other acts as may be reasonably necessary to exercise its powers to perform itsduties under any of the provisions of this Declaration, the Articles, By-Laws, Rules or Boardresolutions.

[5.8] Taxes and Assessments. The Association shall pay all real and personalproperty taxes and assessments and all other taxes levied against the Association, the CommonArea or the personal property owned by the Association. Such taxes and assessments may becontested or compromised by the Association, provided that they are paid or that a bondinsuring payment is posted before the sale or the disposition of any property to satisfy thepayment of such taxes.

[5.9] Utility Service to the Common Area. The Association shall acquire,provide and pay for water, sewer, garbage disposal, refuse and rubbish collection, electrical,telephone and other necessary utility services for the Common Area.


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[5.10] Reporting Requirements. The Association shall prepare and distribute thefollowing:

(i) A pro forma operating budget for each fiscal year shall be distributed not lessthan 30 days nor more than 90 days before the beginning of the fiscal year consisting of at least

the following:

(a) Estimated revenue and expenses on an accrual basis;

(b) A summary of the Associations reserves based on the most recentreserves review or study conducted pursuant to Section 6.16, which shall be printed in bold typeand shall include the following:

(1) The current estimated replacement cost, estimated remaining lifeand estimated useful life of each major component which the Association is obligated tomaintain (collectively the "Major Components);

(2) As of the end of the fiscal year for which the study was prepared:

a. The current estimate of cash reserves necessary to repair,replace, restore or maintain the Major Components; and

b. The current amount of accumulated cash reserves actuallyset aside to repair, replace, restore or maintain the Major Components; and

c. If applicable, the amount of funds received from either acompensatory damage award or settlement to an association from any person or entity forinjuries to property, real or personal, arising out of any construction or design defects, and theexpenditure or disposition of funds, including the amounts expended for the direct and indirectcosts or repair of construction or design defects. These amounts shall be reported at the end ofthe fiscal year for which the study is prepared as separate line items under case reservespursuant to (2)band

(3) The percentage that the amount in subsection (2)b is to theamount in subsection (2)a;

(4) The current deficiency in reserve funding expressed on per unitbasis. This amount shall be calculated based upon California Civil Code Section 5565.

(c) A statement as to all of the following:

(1) Whether the Board has determined to defer or not undertakerepairs or replacement of any major component with a remaining life of 30 years or less,including a justification for the deferral or decision not to undertake the repairs or replacement.


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(2) Whether the Board has determined or anticipates that the levy ofone or more special assessments will be required to repair, replace or restore any MajorComponent or to provide adequate reserves therefore.

(3) The mechanism or mechanisms by which the Board will fund