CC&Rs - Sascha Estates HOA - 2018Professional Law Corporation
2566 Overland Avenue, Suite 730
Los Angeles, California 900.64
(310) 945-0280 , ,
23899032
Regina Aloomendras
Santa Clara Countyy -Clerk-Recorder
03/29/2018 12:13 PM
COI~FORI~ED COPY
Copy of document recorded.
Has not been compared wlth original.
DECLARATION OF COVENANTS, CONDITIONS
AND RESTRICTIONS
SASCHA ESTATES IIOMEOWNERS ASSOCIATION
a California nonprofit mutual-benefit corporation
If this document contains any restriction based on race, color, religion,
sex, gender, gender identity, gender expression, sexual orientation,
familial status, marital status, disability, genetic information, national
origin, source of income as defined in subdivision (p) of Section 12955,
or ancestry, that-restriction violates state and federal fair housing laws
and is void, and may be removed pursuant.to~ Section 12956.2 of the
Government Code. Lawful restrictions under state and. federal law on
the age of occupants in senior housing or housing for older persons shall
not be construed as restrictions based on familial.status.
A. TABLE OF CONTENTS
A. Table of Contents ................................................................................................................................. i
Article 1: Definitions .................................................................................................................................. 12
1.1 "Annual Meeting" ....................................................................................................... ............... 12
1.2 "Architectural Standards" .......................................................................................... ............... 12
1.3 "Articles" .................................................................................................................... ...............12
1.4 "Assessment " .............................................................................................................. ............... l2
1.5 "Association" .............................................................................................................. ...............13
1.6 "Board" and "Board of Directors" ............................................................................ ............... l3
1.7 "Budget " ..................................................................................................................... ..:............ 13
1.8 "Bylmvs" ..................................................................................................................... ...............13
l.9 "CC&Rs" .................................................................................................................... ...............13
1.10 "Committee " ............................................................................................................... ............... 13
1.11 "Common Az•ea" ........................................................................................................ ............... 13
1.12 "Common Expenses " .................................................................................................. ............... 13
1.14 "Director" ................................................................................................................... ............... l3
1.15 "Govez-Wing Documents " ............................................................................................. ............... 13
1.16 "/mprovements" .......................................................................................................... ...............13
1. l7 "Lender" ..................................................................................................................... ............... 13
1.18 "Lot" ........................................................................................................................... ...............14
1.19 "Nlanagez," .................................................................................................................. ...............14
1.20 ,.Map„ ......................................................................................................................... ...............14
1.21 "Member„ .........................:......................................................................................... ...............14
1.22 "Membership Approval "and "Approval of the Membership " ................................... ............... 14
1.23 "Ma-tgage " ................................................................................................................. ............... 14
1.24 "Mortgagee " ............................................................................................................... ............... 14
1.25 "officer " ..................................................................................................................... ............... 14
1.26 "Operating Accozznts " ................................................................................................. ............... 14
1.27 "Owner " ...................................................................................................................... ............... 14
1.28 "Party Wal!" ............................................................................................................... ............... IS
1.29 "Patio " ........................................................................................................................ ............... I S
1.30 "Person" ..................................................................................................................... ...............IS
1.31 "Pz•operties " ................................................................................................................ ............... I S
1.32 "Qzzorzrm " ................................................................................................................... ............... 15
/. 33 "Regular Assessments " ............................................................................................... ............... I S
1.34 "Reimbursement Special Assessments" or "Reimbursement Assessments" ............... ............... IS
1.35 "Reser-ves „ or, ,.Reserve Accounts " ........................................................................................... 1 S
. 1.36 "Residence " ............................................................................................................................... 1 S
1.37 "Resident " .................................................................................................................................. 1 S
1.38 "Rules and Regulations" or "Rules" ......................................................................................... /,S
1.39 "Separate /nterest" .................................................................................................................... lS
1.40 "Special Assessments " ............................................................................................................... 1 S
1.41 "Tenants" and "Lessees" .......................................................................................................... 16
1.42 "Utility Lines" ............................................................................................................................ 16
1.43 "Voting Polver " ............................................................:............................................................. 16
1.44 Definitions of Other Terms ......................................................................................................... 16
Article 2: Membership Rights and Privileges .......................................................................................... 16
2. l Prohibition Against Severance ................................................................................................... 16
2.2 Membership ................................................................................................................................ l6
a. Membership Appurtenant to Lots ............................................................................................... ] 6
b. No Membership for Security Interests ........................................................................................ 16
c. No Membership for Tenants ....................................................................................................... 16
d. No Separate Transfer of Membership ......................................................................................... 16
e. Trust ............................................................................................................................................ 17
f. Corporation ................................................................................................................................. 17
g. Partnership .................................................................................................................................. 17
i. Other Entities .............................................................................................................................. 17
2.3 Proof of Ownership .................................................................................................................... 17
2.4 Voting Rights .............................................................................................................................. l 7
2. S /nspection of Records ........................................................................................................: ........ 17
2.6 Ingress, Egress and Szrpport ....................................................................................................... 18
2.7 Easement for Use and Enjoyment ............................................................................................... 18
2.8 Encroachment Easement ............................................................................................................ 18
Article 3: Membership Obligations ........................................................................................................... l8
3.1 Obligation to Follow Governing Documents .............................................................................. l8
3.2 Sectrr-ity ............................................................:.......................................................................... l8
3.3 Purchase Subject to Violations ................................................................................................... 18
3.4 Notice of Transfer of Otivnership ................................................................................................ 18
3.S Duty to Maintain, Repair and Replace .................................................................:..................... 18
a. Lots ............................................................................................................................................. 19
b. Slopes ......................................................................................................................................... 19
c. Improvements ............................................................................................................................. 19
d. Utility Lines ................................................................................................................................ 19
e. Weeds and Trash/Rubbish .......................................................................................................... 19
f. Trash ........................................................................................................................................... 19
g. Paint ............................................................................................................................................ 19
h. Sidewalk and Street Encroachments ........................................................................................... 19
i. Fences .........................................................................................................................'................ .19
11
j. Insects and Plant Diseases ........................................................................................................... ] 9
k. Tree Removal, Pruning and Topping ..................................................:....................................... 20
I. Termites and Pests ...................................................................................................................... 20
m. Garage Doors .............................................................................................................................. 20
n. Fireplaces .................................................................................................................................... 20
o. Patios .......................................................................................................................................... 20
p. Drainage Structures .................................................................................................................... 20
3.6 Easement foz• Maintenance ......................................................................................................... 20
3.7 Water Damage and Mold ........................................................................................................... 21
3.8 Obligation to Cary Insurance ................................................................................................... 2l
3.9 Liability for Damage .................................................................................................................. 21
3.10 Reimbz~rsementtoAssociation .................................................................................................... ZI
3.11 Liability for Mitigation ............................................................................................................... 21
3.12 Guests ......................................................................................................................................... 22
3.13 Correction of Violations ............................................................................................................. 22
3.14 Party Walls -General Rules of Law to Apply ............................................................................ 22
a. Sharing of Repair and Maintenance ............................................................................................ 22
b. Destruction by Fire or Other Casualty ........................................................................................ 22
c. Weatherproofing ......................................................................................................................... 22
d. Right to Contribution Runs with Land ....................................................................................... 22
e. Alternate Dispute Resolution ...................................................................................................... 23
Article 4: Duties of the Association ........................................................................................................... 23
4.1 Board of Directors ...................................................................................................................... 23
a. Membership Meetings ...................................................................:............................................ 23
b. Director Qualifications and Meetings ......................................................................................... 23
4.2 Potivers of a Nonprofit Corporation ............................................................................................ 23
4.3 Association Maintenance ............................................................................................................ 23
a. Common Area Slopes ................................................................................................................. 23
b. Fences ......................................................................................................................................... 23
c. Private Roadways ....................................................................................................................... 24
d. Landscaping ................................................................................................................................ 24
e. Park Strip .................................................................................................................................... 24
f Storm Water System ................................................................................................................... 24
g. Sanitary System .......................................................................................................................... 24
4.4 Building Exteriors ....................................................................................................................... 24
4.5 Termites and Pests ...................................................................................................................... 24
4.6 /ncur and Pay Expenses ............................................................................................................. 24
4.7 Rzzles and Regzzlations ................................................................................................................ 2.i
4.8 Foreclose, Hold Title and Make Conveyances ........................................................................... 25
4.9 Fee Limitation ............................................................................................................................ 25
4.10 Commercial Concessions ........................................................................................................... 25
4.11 Utility and Cable Easements ...................................................................................................... 25
4.12 Granting Utility Easements ........................................................................................................ 25
Ott
4.13 Limitation on Granting Easements ........................................................................................... .. 25
4. l4 Borrow Money .......................................................................................................................... .. 25
4.15 No Power to Encumber Real Property ..................................................................................... .. 25
4.16 Represent Association in Litigation ........................................................................................... .. 26
4.17 Receive and Dispose of Property .............................................................................................. .. 26
4.18 Limitations on Disposition of Personal Property ..................................................................... .. 26
4.19 Limitations on Transfer of Rea! Property ................................................................................. .. 26
4.20 Capitallmprovements ...............................................:............................................................... ..26
a. Defined ..................................................................................................................................... .. 26
b. 5%Limitation ........................................................................................................................... .. 27
c. Obsolescence ............................................................................................................................ .. 27
4.21 Vendor Contract Limitations ..................................................................................................... . 27
a. Public Utility Contract .............................................................................................................. .. 27
b. Fire and Burglary ...................................................................................................................... .. 27
c. Bulk Cable Service ................................................................................................................... .. 27
d. Insurance ................................................................................................................................... .. 27
4.22 Delegation to Manager .................................:........................................................................... .. 27
4.23 Nonprofit Character of Association ........................................................................................... . 27
4.24 Discharge of Liens .................................................................................................................... .. 28
Article 5 : Architectural Control .............................................................................................................. .. 28
5.1 No /mprovements or Alterations Without Approval .................................................................. . 28
5.2 No Exterior Installations .......................................:....:.............................................................. . 28
5.3 Applicants in Good Standing ..................................................................................................... . 28
5.4 Right to Deca•ate Residence ..................................................................................................... . 28
5.5 Architectural Standards ............................................................................................................. . 28
S.6 Architectural Committee ............................................................................................................ . 29
a. Architect ................................................................................................................................... ..29
b. Conflicts of Interest .................................................................................................................. .. 29
5.7 Rescinding Approval .................................................................................................................. . 29
5.8 Submission of Plans ................................................:.................................................................. . 29
5.9 Review Fees and Consb•uction Agreement ....................................:........................................... . 29
5.10 Variances ................................................................................................................................... .30
5. I I Engineering and Code Requirements ........................................................................................ . 30
5.12 /nspection .................................................................................................................................. . 30
5.13' Bui/ding Department and Association Approvals ...................................................................... . 30
5.14 Mechanics' Liens ....................................................................................................................... . 30
5.15 Hold Harmless and Indemn~ ................................................................................................... . 30
5.16 Combining Lots ......................................................................................................................... . 31
5.17 No Right to Divide Lots ............................................................................................................. . 31
5.18 Sguare Footage and Setbacks .................................................................................................... . 31
iv
5.19 View Restrictions ................................................................................................... ..................... 31
5.20 Drainage ................................................................................................................ .....................31
5.21 Occupancy of Unfinished, Temporary or Mobile Structures Prohibited ............... ..................... 31
5.22 Removal of Temporary Buildings .........:................................................................ ..................... 32
5.23 Diligent Construction ......................................:..................................................... ..................... 32
5.24 Landscaping Following Construction ................................................................... ..................... 32
5.25 Waiver of Liability ................................................................................................. ..................... 32
Article 6: Lots, Including Patios ........................................................................................... ..................... 32
6.1 Member Maintenance of Patios ............................................................................. ..................... 32
a. Clean and Sanitary ................................................................................................. ..................... 32
b. Waterproofing ........................................................................................................ .....................32
c. Doors and Windows .............................................................................................. ..................... 32
d. Structural Elements ......................................:......................................................... ..................... 32
6.2 Right to Inspect and Repair ........................................................................:.......... ..................... 32
6.3 Damage ................................................................................................................. ..................... 33
6.4 Patio Alterations .................................................................................................... ..................... 33
6.5 Dangerous Acts ..................................................................................................... ..................... 33
6.6 Unsightly Objects .................................................................................................. ..................... 33
6.7 Patio Furniture ...................................................................................................... ..................... 33
Article 7 : General Iiestrictions ............................................................................................. ..................... 33
7.1 Antennas ................................................................................................................ .....................33
7.2 Barbecues .........................................................................................:.................... .....................33
7.3 Drones ................................................................................................................... ..................... 33
7.4 Flammable Materials ............................................................................................ ..................... 34
7.5 Health/Safety Hazards .......................................................:................................... ..................... 34
7.6 Spas and Hot Tubs ................................................................................................. ..................... 34
7.7 Laundry ................................................................................................................. ..................... 34
7.8 Nudity .................................................................................................................... ..................... 34
7.9 Nuisance ................................................................................................................ ..................... 34
a. Unreasonableness .................................................................................................. ..................... 34
b. Secondhand Smoke ................................................................................................ ..................... 34
c. Allergies ................................................................................................................ ..................... 34
7.10 Occupancy Restriction ........................................................................................... ..................... 34
7.11 Grandfathered Occzrpancy ..................................................................................... ..................... 35
7.12 Obstruction of the Common Area .......................................................................... ..................... 35
7.13 Quiet Enjoyment .........................................................................,.......................... ..................... 35
7.14 Residential' Use ...................................................................................................... ..................... 35
7. I S Roof Restricted Access ........................................................................................... ..................... 35
7.16 Sale of Lot .............................................................................................................. ..................... 35
v
7.17 Satellite Dishes .......................................................................................................................... . 35
7.18 Signs .......................................................................................................................................... . 36
7.19 Smoking and Vaping .................................................................................................................. . 36
7.21 Use of /ndependent Contractors ..................................................................................:............. . 36
7.22 Window Coverings ...................................................................................................................... 36
7.23 Drains ........................................................................................................................................ :36
7.24 Drilling and Exploration ........................................................................................................... . 36
7.25 Increased Insurance Rates .................................................:....................................................... . 37
7.26 Machinery and Eguipment ......................................................................................................... . 37
7.27 Sanitary Conditions ................................................................................................................... . 37
7.28 Storage ....................................................................................................................................... .37
7.29 Tanks and Receptacles ................................................................................................................ 37
7.30 Trash Containers ....................................................................................................................... . 37
7.3/ Utility Service ............................................................................................................................. 37
Article 8 : Leasing and ownership limitations .......................................................................................... 38
8.1 No Transient Use ........................................................................................................................ 38
8.2 Lease Requirements .................................................................................................................... 38
8.3 Lease Addendum ......................................................................................................................... 38
8.4 Governing Documents ................................................................................................................ 38
8.5 Transfer of Common Area Privileges ..............................................~........................................... 38
8.6 Transfer of Occupancy ................................................................................................................ 39
8.7 Repair Damage ........................................................................................................................... 39
8.8 Unlawful Detainer ...................................................................................................................... 39
8.9 Assignment of Rents .................................................................................................................... 39
8.10 No Criminal Activity ................................................................................................................... 39
Article 9 : Pets .............................................................................................................................................. 40
9.1 Pet Limitation ............................................................................................................................. 40
9.2 Assistance Animals ..................................................................................................................... 40
9.3 Nuisance ..................................................................................................................................... 40
9.4 Dangerous Animals ......................:............................................................................................ 40
9.5 Liability ..:................................................................................................................................... 40
9.6 Control ........................................................................................................................................ 40
Article 1 0: Vehicles and Parking ............................................................................................................... 41
10.1 Management of Parking ............................................................................................................. 41
10.2 Restricted Parking ...................................................................................................................... 41
10.3 Commercial Vehicles .................................................................................................................. 41
vi
10.4 Assigned Parking ......................................................................................... ............................... 41
10.5 Guest Parking .............................................................................................. ............................... 41
10.6 Renting of Parking Spaces ......:.................................................................... ............................... 41
10.7 Proper Operating Condition .............................................:.......................... ............................... 91
10.8 Limited Operation ........................................................................................ ............................... 41
10.9 Electric Vehicle Charging Stations .............................................................. ............................... 41
10.10 Noise Limitation .......................................................................................... ............................... 42
1 D.11 Repair of Vehicles ........................................................................................ ............................... 42
10.12 I~Vashing of Vehicles ..................................................................................... ............................... 42
10.13 Flzzid Leaks .................................................................................................. ............................... 42
10.14 Theft or Damage ........................................................................:................. ............................... 42
10.15 /mpedingAccess .......................................................................................... ...............................42
10.16 Garages ....................................................................................................... ...............................42
Article 11: Enforcement of Governing Documents ................................................................................. 42
ll.l Association Enforcement Rights .................................................................. ............................... 42
a. Monetary Penalties ..................................................................................................................... 42
b. Suspend Common Area Privileges ............................................................. ................................ 42
c. Suspend Voting Rights ................................................................................ ............................... 43
d. Judicial Enforcement .................................................................................................................. 43
/ 1.2 Cz~zzzulative Remedies .................................................................................. ............................... 43
11.3 Failure to Enforce Not a Waiver ................................................................. ............................... 43
11.4 Remedy at Law Inadequate .......................................................................... ............................... 43
11.5 Right of Action Against Buyer ..................................................................... ............................... 43
11.6 Right to Reguest Identification .................................................................... ............................... 43
11.7 Attorneys' Fees ............................................................................................ ............................... 43
Article 12: Right of Entry .......................................................................................................................... 44
12.1 Limited Right of Entry ................................................................................. ............................... 94
12.2 Notice of Entry .............................................:............................................... ............................... 44
12.3 Avoid Um-easonable Intezference ................................................................ ............................... 44
12.4 Emergency Entry ......................................................................................... ............................... 44
12.5 Refusal to Allow Entry ................................................................................. ............................... 44
12.6 Damage Repaired by Association ................................................................ ............................... 44
Article 13: Assessments .............................................................................................................................. 44
13.1 Pzrrpose of Assessments ............................................................................... ............................... 44
13.2 Regular Assessment ..................................................................................... ............................... 45
a. 20% Limitation ............................................................................................ ............................... 45
b. Proration of Regular Assessments .............................................................................................. 45
c. Payable Monthly .......................................................................................... ............................... 45
d. Written Notice ............................................................................................................................45
vii
e. Modification of Assessment ....................................................................................................... 45
13.3 Special Assessment ..................................................................................................................... 4S
a. 5%Limitation ............................................................................................................................. 46
b. Proration of Special Assessments ............................................................................................... 46
c. Reimbursement Assessments .....................................................................:................................ 46
d. Payment Schedule ....................................................................................................................... 46
e. Written Notice ............................................................................................................................ 46
13.4 Emergency Assessment ................................................................................................................ 46
13.5 Deposit of Assessments ............................................................................................................... 46
a. Commingling .............................................................................................................................. 46
b. Interest ........................................................................................................................................ 47
13.6 Reserves ...................................................................................................................................... 47
a. Be Segregated ............................................................................................................................. 47
b. Be Invested ................................................................................................................................. 47
c. Require Two.Signatures .........:................................................................................................... 47
d. Not Be Reimbursed .................................................................................................................... 47
Article 14: Enforcement of Assessments ......................................................................:............................ 47
14.1 Liability for Assessments ...........................................................:................................................ 47
14.2 Enforcement Rights ..................................................................................................................... 47
a. Late Fees and [nterest ...............................:................................................................................. 48
b. File Suit ...................................................................................................................................... 48
c. Lien and Foreclose ...................................................................................................................... 48
d. Suspend Privileges ...................................................................................................................... 48
e. .Suspend Voting Rights ............................................................................................................... 48
f Additional Remedies .................................................................................................................. 48
14.3 No Offsets ................................................................................................................................... 48
14.4 No Exemption by Waiver of Use ................................................................................................. 49
14.5 Attorneys' Fees .............................................................................................:............................. 49
14.6 Non -Waiver of Assessments ....................................................................................................... 49
Article 15: Insurance .................................................................................................................................. 49
1 S.1 Association Insurance ................................................................................................................. 49
a. Automobile Liability [nsurance .................................................................................................. 49
b. Boiler and Machinery Insurance ................................................................................................. 49
c. Comprehensive or Commercial General Liability ("CGL") ....................................................... 49
e. Directors and Officers ................................................................................................................ 50
f. Earthquake and Flood Insurance ................................................................................................ 50
g. Employment Practices Liability ................................................................................................. 51
h. Fidelity Bond .............................................................................................................................. 51
i. Umbrella Policy .......................................................................................................................... 51
j. Workers Compensation .............................................................................................................. 51
1 S.2 ~Llember Obligation to Carry Insurance ..................................................................................... SI
a. Waiver of Claims ...............~........................................................................................................ 51
b. Assignment of Proceeds ............................................................................................................. 51
1 S.3 Payment of Deductible ................................................................................................................ 52
I S.4 Liability for Increased Insurance Rates ...................................................................................... 52
1 S. S Choice of Contractor ............................................................................................... ~.................. S2
viii
15.6 Insurance Company Rating ........................................................................................................ 52
Article 16: Protection of Lenders .............................................................................................................. 52
16.1 Information ................................................................................................................................. 52
16.2 No Priority Over Rights of First Mortgagees ............................................................................. 52
16.3 Relationship with Assessment Giens ........................................................................................... 52
16.4 Foreclosure ...........................................................:..................................................................... 52
16.5 Priority of Mortgage Lien ........................................................................................................... 53
16.6 Curing of Breaches ..................................................................................................................... 53
16.7 Payment of Taxes and Charges .................................................................................................. 53
Article 1 7: Limitations of Liability ........................................................................................................... 53
17.1 Standard for Giability ..............................................................................:.................................. 53
17.2 Limited Personal Liability .......................................................................................................... 53
17.3 Association Not a Security Provider .........................................................................................:. 53
17.4 Duty to Defend ......................................................................................:..................................... 54
17.5 Personal /njury or Property Damage Sustained Within a Lot .................................................... 54
17.6 Actions Against Volunteers ......................................................................................................... 54
Article 1 8: Damage/Destruction to Improvements .................................................................................. 54
18.1 Association's Duties ................................................................................................................... 54
18.2 Member. 's Duties ........................................................................................................................ 54
18.3 Duties of Board Dzrring Reconstruction ..................................................................................... SS
Article 1 9: Condemnation ...:...................................................................................................................... 55
19.1 Notice .......................................................................................................................................... SS
19.2 Payment for Common Area ........................................................................................................ 55
19.3 Payment for Lot .......................................................................................................................... 55
19.4 Revision of Documents ............................................................................................................... 55
19.5 Status of Membership ................................................................................................................. 55
Article 2 0: Declarant's Rights and Reservations ..................................................................................... 55
20.1 Construction Rights .................................................................................................................... 56
20.2 Sales and Marketing Rights ........................................................................................................ 56
a. Marketing and Sales Facilities .................................................................................................... 56
b. Use of Residential Association Property .................................................................................... 56
20.3 Creating Additional Easements .................................................................................................. 56
20.4 Architectural Rights ............................................:i ...................................................................... .i6
20.5 Use Restriction Exemption ......................................................................................................... 56
20.6 Assignment of Rights .................................................................................................................. 57
20.7 Amendment to Article ................................................................................................................. 57
tx
20.8 Power of Attorney ....................................................................................................................... 57
20.9 Participation in Residential Association .................................................................................... 57
20.10 Declarant Approval of Actions ................................................................................................... 58
a. General Rights ............................................................................................................................ 58
b. Limit on Actions ......................................................................................................................... 58
20.11 Marketing Name ...................................................................................:..................................:.. 58
20.12 Assessments ...............................................................................:................................................ 58
Article 21: Dispute Resolution Procedures ............................................................................................... 58
21.1 Dispute Resolution Procedure .................................................................................................... 58
21.2 Alternative Dispute Resolution ................................................................................................... 60
Article 22: Miscellaneous ........................................................................................................................... 63
22. l Amendment ................................................................................................................................. 63
22.2 Amendments to Conform With Mortgagee Requirements ........................................................... 63
22.3 Lender Approval ......................................................................................................................... 63
22.4 Amendment to Conform to Statute .....................................................:........................................ 63
22.5 Term of CC&Rs .......................................................................................................................... 63
22.6 Attorneys' Fees ........................................................................................................................... 64
22.7 Notices ........................................................................................................................................ 64
22.8 Headings ..................................................................................................................................... 64
22.9 Liberal Construction ................................................................................................................... 64
22.10 Number and Gender ................................................................................................................... 64
22.11 Severability ................................................................................................................................. 64
22.12 No Public Rights ......................................................................................................................... 65
22.13 Successor Association ................................................................................................................. 65
22.14 Conflicting Provisions ................................................................................................................ 65
CERTIFICATION ..................................................................................................................................... 65
X
SASCHA ESTATES HOMEOWNERS ASSOCIATION
a California nonprofit mutual-benefit corporation
THIS. Declaration of Covenants, Conditions and Restrictions ("CC&Rs") is made by all
persons who own Lots in that certain real property planned residential development known as
Sascha Estates Homeowners Association located in Santa Clara County, California. These CC&Rs
shall apply to and bind all properties previously covered'by covenants, conditions and restrictions.
Without reducing the number of properties covered by these CC&Rs, the CC&Rs shall apply to
the following properties:
All of Lots 1-4, inclusive, and Lot A, as shown on Tract No.
10289, recorded September 14, 2015 in Book 886 of Maps
at Pages 23 and 24, Santa Clara County Records, and filed
as Document No. 23080152 ("The Properties").
This Declaration is made on the date last written by SAI Homes, Inc., aka SAI Investments, Inc.
Recitals
A. Declarant is the owner of the Property located in the City of Campbell, Santa Clara
County, California, described on the Subdivision Map recorded in Book 886 of Maps at Pages 23
and 24 as Document No. 23080152, in the Office of the Santa Clara County Recorder (the "Map").
B. Upon completion of construction of the improvements, Declarant intends to sell
and convey Lots and improvements to Owners, subject to the provisions of this Declaration, and,
on or before the close of the first Lot sale escrow, Declarant will convey the Community Common
Area tb the Association.
C. By this Declaration, Declarant intends to establish a "common interest
development,", which is a "planned development" under California Civil Code Section 4100(c)
consisting of Lots, Lot improvements and the Common Area.
Declaration
Declarant declares that, upon conveyance of the first Lotto an Owner other than Declarant
and upon conveyance of the Common Area to the Association as provided hereinafter, the
Property will be a common interest development as defined in California Civil Code Section
4100, and shall be held, conveyed, hypothecated, encumbered, leased, rented, used and occupied
subject to the following limitations, reservations, restrictions, easements, covenants, conditions,
servitudes, liens and charges, all of which are declared and agreed to be in furtherance of a plan
of common interest development for the subdivision, improvement, protection, maintenance and
sale of Lots within the Properties; and all of which are declared and agreed to be enforceable
equitable servitudes for the purpose of enhancing, maintaining and protecting the value and
attractiveness of the Properties. All of the limitations, restrictions, easements, reservations,
covenants, conditions, servitudes, liens and charges shall be binding on and inure to the benefit
of all parties having or acquiring any right, title or interest in-the Properties, and shall be binding
on and inure to the benefit of the successors in interest of such parties. Declarant further declares
that it is the express intent that this Declaration satisfy the requirements of California Civil Code
Section 4250.
By this instrument, except for any recorded covenants affecting only a single Lot in the
properties covered by these CC&Rs, the Members of the Association hereby fully states
limitations, reservations, restrictions, easements, covenants, conditions, servitudes, liens and
charges which:
1. Benefit Members. Be for the benefit of Members of the Association;
2. Benefit the Properties. Be for the benefit, enhancement and protection of the
desirability, value and attractiveness of the Properties and each Lot therein;
3. Bind Successors in Interest. Inure to the benefit of and be binding upon each
successor in interest of the Association, each Member, Tenant, Resident, and
occupant of any portion of the Properties, as well as their respective heirs, personal
representatives, grantees, Tenants, licensees, successors and assigns; and
4. Run With the Land. Run with the land and be binding upon all parties having or
acquiring any right, title or interest in the Properties or any portion of the Properties,
whether as sole owners, joint owners, Tenants, Residents, occupants or otherwise.
NOW THEREFORE, all Lots in the Properties, as well as any conveyance, transfer, sale,
assignment, rental, lease or sublease of a Lot, shall be deemed to incorporate. the provisions of
these CC&Rs. Each successor in interest is subject to all of the covenants, conditions and
restrictions contained in these CC&Rs.
ARTICLE 1: I)EFINITI®NS
1.1 "Annual Meeting" means the annual meeting of the Members of the Association.
1.2 "Architectural Standards" means those rules and guidelines which govern the
making of physical changes, alterations, repairs or Improvements to Lots and Common Area.
1.3 "Articles" means the Association's Articles of Incorporation.
1.4 "Assessment" means any Regular Assessment, Special Assessment,
Reimbursement Special Assessment, or any other assessment levied, imposed, or assessed against
a Member's Lot in accordance with the provisions of the Governing Documents or applicable law.
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1.5 "Association" means the Sasha Estates Homeowners Association, a California
nonprofit mutual-benefit corporation. The Association shall include, when the context requires, its
Officers, Directors, employees and agents.
1.6 "Board" and "Board of Directors" means the Board of Directors of the Association.
1.7 "Budget" means a pro forma, projected or estimated operating budget of the
Association's income and expenses for a twelve (12) month period.
1.8 "Bylaws" means the duly adopted Bylaws of the Association, including any
amendments.
1.9 "CC&Rs" means this Declaration of Covenants, Conditions and Restrictions and
any amendments to these CC&Rs.
1.10 "Committee" means any committee appointed by the Board to assist in the
management and administration of the affairs of the Association.
i .l 1 "Common Area" means the Properties, except the Separate Interests owned by
Members. The Common Area is shown on the said Map as Lot A. If no Common Area
Improvements exist, the Common Area shall mean the mutual and reciprocal easement rights
appurtenant to Members' Separate Interests. The Association owns the Common Area.
1.12 "Common Expenses" means the costs, expenses and charges in connection with
maintaining, managing, insuring, operating, repairing, improving or replacing the Common Area
or managing the affairs of the Association. Common Expenses include, but are not limited to, those
amounts reasonably necessary for Reserves.
1.13 "Declarant's Representative" means one or more person designated by Declarant
to represent Declarant with respect to all matters in this Declaration.
1.14 "Director" means any member of the Association's Board of Directors.
1.15 "Governing Documents" means these CC&Rs and any other documents which
govern the operation of the Association, including, but not limited to, the Articles of Incorporation,
Bylaws, Architectural Standards, Rules and Regulations, and Election Rules, as may be amended
from time to time.
1.16 "Improvements" means all buildings and other structures located within the
Properties, including, but not limited to, streets, sidewalks, and utilities.
1.17 "Lender" means the holder of a first mortgage or deed of trust given by a Member
(or his predecessor in interest), the lien of which mortgage or deed of trust is superior to all other
monetary encumbrances, except real property taxes and assessments.
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1.18 "Lot" means any real property which is a Separate Interest such as lots, sublots, or
parcels in the Properties subject to these CC&Rs. The Lot shall include the improvements to the
Separate Interest.
1.19 "Manager" means any Person or company employed or retained by the Association
to oversee the operation, maintenance and management of the Association.
1.20 "Map" means all that certain property as shown on Tract No. 10289, recorded
September 14, 2015 in Book 886 of Maps at Pages 23 and 24, Santa Clara County Records and
filed as Document No. 23080152.
1.21 "Member" means the Owner, whether one or more Persons, of a Lot within the
Properties as evidenced by apublicly-recorded deed to the Lot, but excluding any Person or
Persons having such an interest in the Lot merely as security for the performance of an obligation.
Membership shall be appurtenant to and may not be separated from the record fee ownership of a
Lot and shall not be transferred, encumbered, pledged, alienated, or otherwise separated in any
way, except in connection with the record sale of a fee interest of the Lotto which it is appurtenant.
Where the CC&Rs impose restrictions on Member, the restriction shall also apply to Member's
Tenants, and Member's and Tenant's family, guests and invitees..
1.22 "Membership Approval" and "Approval of the Membership" means approval by
the affirmative vote of a majority of those Members present and voting at a duly held meeting at
which a Quorum is present as defined in the Bylaws, unless provided otherwise in the Bylaws or
these CC&Rs.
1.23 "Mortgage" means a deed of trust.
1.24 "Mortgagee" shall refer to a beneficiary (or its assignee) under a deed of trust to a
Lot and the term "First Mortgagee" shall refer to a beneficiary (or its assignee) under a deed of
trust to a Lot with priority over all other Mortgagees and deeds of trust.
1.25 "Officer" means the president, vice-president; secretary, treasurer, and' any other
officer of the Association, as defined in the Bylaws.
1.26 "Operating Accounts" means any account into which the Association's
Assessments are deposited and out of which the Association's operational expenses are paid.
1.27 "Owner" means the owner, whether one or more Persons, of the publicly-recorded
fee title to any Lot within the Properties, but excluding any Person or Persons having such an
interest in the Lot merely as security for the performance of an obligation.
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1.28 "Party Wall" shall mean any wall located on a property line dividing any
Townhouse Lots, which wall is commonly used by any such Lots. The rights and responsibilities
regarding Party Walls shall be governed by Section 3.14 of this Declaration.
1.29 "Patio" shall refer to a patio which is attached to a Residence and accessible
through the Lot of which it is a part.
1.30 "Person" means a natural person, corporation, partnership, trust, association, or
other entity, as recognized by law.
1.31 "Properties" means all that real property shown on the Map.
1.32 "Quorum" means more than 50% of the Voting Power of the Association, unless
provided otherwise in these CC&Rs or Bylaws.
l .33 "Regular Assessments" means Assessments other than Special Assessments and
Reimbursement Assessments, levied or imposed against Members in order to perform the
Association's obligations under the Governing Documents or the law.
1.34 "Reimbursement Special Assessments" or "Reimbursement Assessments" means
those Special Assessments levied against Members for expenses incurred by the Association
arising out of: (i) actions or omissions of Members, Tenants or their respective family, guests,
invitees, or pets; (ii) materials or services provided to Members, Tenants or their respective family,
guests, invitees, or pets; or (iii) conditions originating on a Lot.
1.35 "Reserves" or "Reserve Accounts" means those monies set aside in a separate
account for anticipated long-term maintenance, repair, replacement and restoration of major
Common Area components of the Properties of Improvements upon the Common Area, and any
other obligations of the Association that are authorized by either the Governing Documents or law.
1.36 "Residence" means a structure used for residential purposes.
1.37 "Resident" means any Person in actual possession of all or any portion of a Lot.
1.38 "Rules and Regulations" or "Rules" means the rules and regulations adopted by the
Board to interpret and implement the Governing Documents and for the orderly conduct of the
business of the Association.
1.39 "Separate Interest" means a lot, parcel, area, or space separately owned by a
Member.
1.40 "Special Assessments" means Assessments levied from time to time against
Members if at any time during the .fiscal year the Regular Assessments are inadequate to perform
the Association's obligations under the Governing Documents or the law, including, but not
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limited to, Common Area maintenance and repairs, unexpected expenses, capital improvements,
and emergency repairs.
1.41 "Tenants" and "Lessees" means those Persons who have the temporary use and
occupancy of Lots owned by others, whether such use is paid for in money or other value.
1.42 "Utility Lines" means sewer lines, storm drains, water pipes, electricity lines,,gas
lines, telephone lines or cables, television cables, satellite dish cables, heating and air conditioning
conduits, heating and air conditioning ducts, heating and air conditioning flues, fiber optic cables,
data lines, and other similar lines, pipes, cables, ducts, flues, and conduit pipes.
1.43 "Voting Power" means the total number of Lots entitled to vote, excluding those
Lots for which voting rights have been properly suspended. i
1.44 Definitions of Other Terms. Unless the context clearly requires otherwise, all other
terms are defined in the Davis-Stirling Act.
ARTICLE 2: MEMBERSHIP RIGHTS AND PRIVILEGES
2.1 Prohibition Against Severance. Members shall not have the right to sever their Lots
from their membership rights or from their interest in the Common Area.
2.2 Membership. Each Person shall automatically become a Member of the Association
upon obtaining apublicly-recorded fee title ownership interest in a Lot and shall remain a Member
until he or she ceases to have such recorded fee ownership interest in a Lot.
a. Membership Appurtenant to Lots. Membership in the Association is for the
benefit of and appurtenant to the Lot to which it relates and shall not be
separated from the ownership of the Lot.
b. No Membership for Security Interests. Membership does not include Persons
who hold an interest in a Lot merely as security for the performance of an
obligation.
c. No Membership for Tenants. Tenants have the same rights to use the Common
Area as Members, but shall not be Members nor have the right to vote.
d. No Separate Transfer of Membership. No Member may transfer, pledge, or
alienate in any way his/her membership in the Association, except upon the
recorded transfer of the fee interest in the Lot to which it is appurtenant and
then only to the transferee of such fee interest.
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e. Trust. If the record fee title to a Lot is held in the name of a trustee on behalf of
a trust, the trustees of the trust shall be authorized to exercise the rights and
privileges of Association membership on behalf of the trust.
Corporation. If the record fee title to a Lot is held by a corporation, the president
of the corporation, as designated in the corporation's minutes, shall be
authorized to exercise the rights and privileges of Association membership on
behalf of the corporation.
g. Partnership. Ifthe record fee title to a Lot is held by a partnership, the managing
partner, as designated in the partnership agreement, shall be authorized to
exercise the rights and privileges of Association membership on behalf of the
partnership. If no managing partner has been designated in the partnership
agreement, then the partnership shall deliver to the Association a written
designation of the name of the partner who is authorized to exercise the rights
and privileges of Association membership on behalf of the partnership.
h. Limited Liability Company. If the recorded fee title to a Lot is held by a limited
liability company, the manager, as designated in the limited liability operating
agreement, shall be authorized to exercise the rights and privileges of
Association Membership on behalf of the limited liability company.
Other Entities. If the record fee title to a Lot is held by a legal entity not
described above, the majority owner of the entity shall be considered the Owner
of the Lot for purposes of membership in the Association and may exercise the
rights and privileges of a Member. If there is no majority owner, an owner of
the legal entity shall deliver to the Association a written designation of the name
of the owner who is authorized to exercise the rights and privileges of
Association membership on behalf of the entity.
2.3 Proof of Ownership. Proof of membership shall be in the form of a recorded deed
showing fee ownership of a Lot.
2.4 Voting Rights. In all matters submitted for a membership vote, Members shall be
entitled to one (1) vote per Lot (regardless of the number of Members having an interest in the
Lot), except for those Members whose voting rights have been properly suspended pursuant to the
Governing Documents and applicable law.
2.5 Inspection of Records. Members shall have the right to inspect records of the
Association as provided for in the Bylaws and by law.
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2.6 Ingress, Egress and Support. Members shall enjoy a nonexclusive easement
appurtenant to and for the benefit of their Lots for ingress, egress, and support over, across and
through the Common Area.
2.7 Easement for Use and Enjoyment. Members have a nonexclusive easement of use
and enjoyment of the Common Area, subject to the rights of the Association to establish reasonable
Rules regulating the use of the Common Area and any other rights described in the Governing
Documents.
2.8 Encroachment Easement. Members agree that minor encroachments of the
Common Area on Lots or of Lots on the Common Area or on other Lots shall be permitted and
that valid easements for the encroachments shall exist. Such encroachments shall not be considered
to be encumbrances either on the Lots or the Common Area.
ARTICLE 3: MEMBERSHIP OBLIGATIONS
3.1 Obligation to Follow Governing Documents. Members, Tenants and Residents
shall be obligated to follow the Association's Governing Documents and to ensure that their
respective family, guests, and,invitees abide by the Governing Documents.
3.2 Security. Neither the Association nor any Officer, Director, Committee member,
employee or agent of the Association shall in any way be considered insurers or guarantors of any
level of security within the Properties. Members shall be responsible for their own security and
shall take appropriate measures to ensure their own security as well as that of their family, guests,
invitee's, and Tenants. Members may not rely on any security measures provided by the
Association. Neither the Association, nor any Officer, Director, Committee member, employee or
agent of the Association shall be liable for any loss or damage by reason of failure to provide
adequate security or ineffectiveness of security measures undertaken: ,
3.3 Purchase Subject to Violations. Buyers shall take ownership of Lots subject to any
violations of the CC&Rs, Architectural Standards, or Rules which may exist concerning the Lot,
whether or not such violations were disclosed by the seller of the Lot and whether or not the
Association knew of the violations at the time of sale. Such buyers shall be liable for correcting
such violations upon demand by the Association. Assessments, fines, and other charges not
secured by a lien on the Lot prior to transfer of title are exempt from this provision.
3.4 Notice of Transfer of Ownership. No later than five (5) days after the assignment,
sale, quitclaim or other transfer of their Lots, Members shall notify the Association of the name
and address of the transferee and the nature of the transfer.
3.5 Duty to Maintain, Repair and Replace. Except for those duties specifically assigned
to the Association by Article 4 of these CC&Rs, Members shall, at their sole expense, maintain
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and repair their Lots, maintain, repair and replace Improvements to their Lots, and Members'
obligations include, without limitation, the following:
a. Lots.
b. Slopes. Their slopes, terraces, drainage contours, drainage devices, and
landscaping.
c. Improvements. All Improvements or alterations to the Lot or appurtenant areas
by any current or prior Owner of the Lot, or by any party other than the
Association, as part of any Improvement or alteration to the Lot.
d. Utility Lines. All Utility Lines that exclusively service the Lot.
e. Weeds and Trash/Rubbish. Members shall keep their Lots free and clear of all
weeds, debris and rubbish (including rubbish dumped by others), and shall keep
all shrubs, trees, grass and plantings of every kind neatly trimmed, watered,
cultivated and free of weeds and other unsightly material.
f. Trash. Members shall not keep trash on or in any portion of the Lot or the
Properties except as provided for in the Rules and Regulations. Owners shall
dispose of trash, garbage, and recycling in the common area receptacles. The
Association is responsible to remove such receptacles to an area where they
may be picked up and emptied by the waste disposal service.
g. Paint. Members shall prevent their Lots from becoming unsightly by reason of
deterioration of paint or other materials and, in general, shall do all other things
necessary or desirable to keep his property neat, clean, attractive and in good
order.
h. Sidewalk and Street Encroachments. Members shall ensure that no tree, shrub
or planting of any kind shall be allowed to protrude from their Lot onto a
sidewalk or street. Trees which overhang a pedestrian walkway or street must
be kept free of limbs from the walkway or street to a height of ten (10) feet
above the walkway or street.
i. Fences. If fences are damaged due to the negligence or willful misconduct of a
Member, Member's Tenant, or their respective family, guests, invitees or pets,
such Member shall bear the full expense of the repair.
Insects and Plant Diseases. No thing or condition may be permitted to exist
upon any Lot which shall induce, breed or harbor infectious plant diseases or
noxious insects.
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k. Tree Removal, Pruning and Topping. Members must keep the trees on their
Lots properly pruned and topped to prevent them from becoming overgrown or
diseased. No living tree having a height of ten (10) feet or more shall be
destroyed or removed from any Lot without the express written consent of the
Architectural Committee. Individual Members and not the Association shall be
responsible for any damage caused by the trees and shrubs on their Lots.
Termites and Pests. Members shall bear the costs of inspections for any damage
to his Lot caused by the presence of wood-destroying pests or organisms
(including microorganisms) and shall have the duty to treat and/or repair, at
Owner's expense, the areas of Member's Lot infested or damaged by such
insects, rodents and ~ wood destroying pests or organisms (including
microorganisms).
m. Garage Doors. Garage doors, door frames, thresholds, weather stripping, locks,
and related hardware.
n. Fireplaces. Fireplace elements located inside a Residence, including flues,
fireboxes, and fireplace mantles and any other portion of the fireplace (the
exterior of the chimney and the chimney cap are the Association's
responsibility).
o. Patios. Members shall maintain, keep in good repair, and replace their Patios,
as provided for in Article 6 in these CC&Rs entitled "Lots, Including Patios."
p. Drainage Structures. Members shall keep all drainage courses, ditches and
swales on their Lots free and clear of all obstructions, and shall maintain all
such drainage ditches, swales and culverts in-good order.
i. No Alteration or Obstruction. Members shall not alter or obstruct a natural
drainage course, or materially add to the natural water volume of a drainage
course without making adequate provisions with respect to neighboring
Lots and the Common Area. Any such alterations, obstructions or additions
to water volume must have the prior written approval of the Architectural
Committee.
ii. Association. All drainage structures, culverts and canals improved by the
Association for the major collection of storm runoff and any natural
drainage courses within Common Area shall be maintained, repaired and
replaced by the Association.
3.6 Easement for Maintenance. Each Member shall have easements across adjacent
Lots and the Common Area as may be necessary for installing, maintaining, repairing, or replacing
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Utility Lines which cannot reasonably be serviced from their Lot. Access to Lots and the Common
Area shall be limited to a reasonable work area and for a reasonable time. Except in emergencies,
reasonable notice and consent, which may not be unreasonably withheld, to perform such work
must be obtained from the affected Lot Owner and/or the affected Association, as applicable.
Immediately after the work is completed, Members shall restore Lots and the Common.Area to the
same or better condition which the Lots and Common Area were in prior to the commencement of
such work. Such restoration work on affected Lots and the Common Area shall be done at the sole
expense of the Member performing the installation, repair, or maintenance work and shall be
completed in timely fashion.
3.7 Water Damage and Mold. Each Member, and not the Association, is responsible
for water damage and mold in and to Lots and the Common Area: (i) negligently caused by the
Member, Member's Tenant or their respective family, guests, or invitees, or (ii) caused by
Member's negligent failure to mitigate damage by promptly reporting signs of water entry and
leaks, including but not limited to roof leaks. Each Member shall regularly inspect their Lot for
plumbing leaks, water accumulation, water intrusion through windows, doors, and roofs and signs
of mold. Members must periodically service and/or replace supply and drain lines to appliances,
HVAC equipment, sinks, toilets, and the like in their Lots.
3.8 Obligation to Carry Insurance. Members shall purchase insurance for their separate
interests, at their sole expense, as more fully described in the Article in these CC&Rs entitled
"Insurance." The Association may confirm compliance with this section but is not required to and
is specifically relieved of any responsibility or liability for not confirming compliance with this
section.
3.9 Liability for Damage. Members shall be liable for any and all damage to the
Common Area, Lots and any personal property when the cause. of such damage originates from
that Member's Lot or the Common Area, or which was caused by the acts or omissions of such
Member, Member's Tenant, or their respective family, guests, invitees, or pets. The Association
shall repair, restore or replace damaged the Common Area as it deems appropriate and may impose
a Reimbursement Special Assessment against the liable Member and that Member's Lot for all
costs, expenses and attorney fees incurred by the Association in connection with the damage. The
Reimbursement Special Assessment may become a lien against the liable Member's Separate
Interest enforceable by the sale of the Member's Lot under Civil Code sections 2924, 2924(b), and
2924(c).
3.10 Reimbursement to Association. In the event the Association undertakes to provide
materials or services that benefit a particular Member, such Member shall reimburse the
Association for the costs incurred by the Association, which shall become a Reimbursement
Special Assessment against the Member.
3.11 Liability for Miti ag tion. Members shall be liable for expenses incurred by the
Association mitigating or repairing damage to the Common Area due to the negligence or willful
21
misconduct of such Members, Members' Tenants, family, guests, invitees, or pets. Such expenses
shall become Special Assessments against such Members.
3.12 Guests. Each Member shall be accountable to the remaining Members and the
Association for the conduct and behavior of Persons residing with or visiting the Member or
Member's Tenant in the Properties.
3.13 Correction of Violations. Following notice and a hearing and a finding by the
Association of a violation of the Governing Documents, the Association will have the right, but
not the duty, to correct or cause to be corrected the violation, including entering a Lot with the
permission of a Member owning the Lot, which permission will not be unreasonably withheld. All
expenses incurred by the Association to correct the violation will be recovered from the Members
owning the Lot as a Reimbursement Assessment following notice and a hearing. If permission for
entry into the Lot is not granted, the Association may enforce the violation by any other means
allowed by the Governing Documents or the law.
3.14 Party Walls -General Rules of Law to Apply. Each wall which is built as a part
of the original construction of Improvements within the Properties and placed on the dividing line
between the Lots shall constitute a Party Wall, and, to the extent not inconsistent with the
provisions of this Article, the general rules of law regarding Party Walls and liability for property
damage due to negligence or willful acts or omissions shall apply thereto.
a. Sharing of Repair and Maintenance. The cost of reasonable Repair and
Maintenance of a Party WaII shall be shared by the Owners who make use of
the wall in equal proportion.
b. Destruction by Fire or Other Casualty. If a Party Wall is destroyed or damaged
by fire or other casualty, then, to the extent that such damage is not covered by
insurance and repaired out of the proceeds of same, any Owner who has used
the wall may restore, it, and if the other Owner thereafter makes use of the wall,
they shall contribute to the cost of restoration thereof in equal proportions
without prejudice, however, to the right of any such Owners to call for a larger
contribution from the others under any rule of law regarding liability for
negligent or willful acts or omissions.
Weatherproofing. Notwithstanding any other provisions of this Article, to the
extent that such damage is not covered and paid by the insurance provided for
herein, an Owner whose .negligent or willful act causes the Party Wall to be
exposed to the elements shall bear the whole cost of furnishing the necessary
protection against such elements.
d. Right to Contribution Runs with Land. The right of any Owner to
contribution from any other Owner under this Article shall be appurtenant to
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the land and shall pass to such Owner's successors in title
e. Alternate Dispute Resolution. In the event of any dispute arising concerning
a Party Wall, or under the provisions of this Article, then, upon written request
of one Owner addressed to the other Owner(s), the matter shall be submitted to
alternative dispute resolution as provided in Article 21, Sections 21.1 and 21.2
of this Declaration.
ARTICLE 4: DUTIES OF THE ASSOCIATION
4.1 Board of Directors. The maintenance of'the Common 'Area, management of the
Association, enforcement of the Governing Documents, and all other acts of the Association shall
be through its Board of Directors, unless provided otherwise in the Governing Documents.
_ a. Membership Meetings. The Association shall have at least one (1) meeting of
its Members each. year, as provided for in the Bylaws. Annual and Special
Meetings of the membership shall be held at the dates, times, and locations
provided for in the Bylaws.
b. Director Qualifications and Meetings. The qualifications of who may be
elected to the Board shall be as provided for in the Bylaws. Meetings of the
Board shall be held as provided for in the Bylaws. Meetings of the membership
shall be conducted in accordance with a recognized system of parliamentary
procedure selected by the Board.
4.2 Powers of a Nonprofit Corporation. The Association shall have all of the powers of
a nonprofit corporation organized under the laws of the State of California, operating for the benefit
of its Members.
4.3 Association' Maintenance. The Association shall maintain, repair, and replace the
Common Area and Association-owned assets, except as otherwise provided in these CC&Rs.
a. Common Area Slopes. The Association shall stabilize, maintain, repair, and
replace all Common Area slopes and drainage contours throughout the
Properties.
b. Fences. The Association shall maintain, repair, and replace all fences, including
graffiti removal. Members shall keep those portions of their Lots under and
around fences in a clean and neat condition, including the removal of all weeds.
Members must remove other vegetation and materials from around the fences
when so requested by the Association.
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c. Private Roadways. To provide ongoing maintenance of the required private
roadways, fences and landscaping as necessary. The common driveway is
constructed of pervious pavers which shall be replaced in kind should the
roadway need to be opened to make utility or other repairs. The pavers shall be
maintained annually by the use of a vacuum sweeper.
d. Landscaping. The Association shall maintain landscaping on Lots and the
Common Area as depicted on the final landscaping plan.
e. Park Strip. The park strip is a City maintained green street bio-treatment
facility. Contact the City of Campbell Street Maintenance staff at (408) 866-
2145 for any needed maintenance.
Storm Water System. ~ Regular monitoring and maintenance of the storm water
system, in accordance with the manufacturer's recommendations.
g. Sanitary System. Regular monitoring and maintenance of the private sanitary
system as described by the designing engineering, and as approved by the City
Engineer.
4.4 Building Exteriors. The Association shall paintthe exteriorofall buildings including fascia boards,
and shall also be responsible for gutters, downspouts, roof covers and fences.
4.5 Termites and Pests. The Board shall have the authority and the duty to: (i) treat
and/or repair the Common Area infested or damaged by insects, rodents, and wood destroying
pests or organisms (including microorganisms); and (ii) impose a Special Assessment against the
membership for the cost of the treatment and/or repairs to the Common Area. Each Owner of a
Lot shall bear the costs of any damage to his Lot caused by the presence of wood-destroying pests
or organisms (including microorganisms). Each Owner shall have the duty to treat and/or repair,
at Owner's expense, the areas of'Owner's Lot infested or. damaged by insects, rodents and wood
destroying pests or organisms (including microorganisms).
4.6 Incur and Pay Expenses. The Association shall have the power to incur and pay the
operational expenses of the Association, which shall include but not be limited to, legal and
accounting services; utilities; insurance; management services; vendor services, such as security,
landscaping, garbage collection, pest control, street sweeping, swimming pool maintenance,
cleaning, painting, and other such services; maintenance, repair, reconstruction, and replacement
of all or any portion of the Common Area or the personal property acquired by the Association;
supplies and materials; and such other services for the use, enjoyment and protection of the
Properties and its Residents as the Board may determine from time to time are reasonable, proper,
or desirable.
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4.7 Rules and Regulations. The Board may adopt, amend, and repeal Rules and
Regulations regarding any matter set forth in the Governing Documents, including, but not limited
to: (i) the use, occupancy, and maintenance of the Properties; (ii) the general health, welfare, peace,
comfort, safety and security of Residents in the Properties; and (iii) the interpretation and
implementation of the Governing Documents.
4.8 Foreclose, Hold Title and Make Conveyances. The Association shall have the
authority to lien and foreclose upon any Lot for non-payment of Assessments, to take title to the
Lot, to assume or otherwise pay off encumbrances, and to acquire, hold title to, lease and convey,
with or without consideration, real and personal property and interests.
4.9 Fee Limitation. The Association may not impose fees that exceed the amount
necessary to defray the costs for which the fee is levied.
4.10 Commercial Concessions. The Board may negotiate contracts and grant
commercial concessions over portions of the Common Area, subject to Membership Approval.
4.11 Utility and Cable Easements. The Association is granted easements to enter onto
Lots as is necessary or prudent to: (i) install, maintain, repair, and replace Common Area utility
lines; and (ii) install, operate, and maintain, repair and replace transmission lines and other
facilities for a community television system, high-speed Internet lines, community security
systems, or other similar systems; provided that any damage to a Member's Lot shall be repaired
at the Association's expense and in a timely fashion to original building construction standards
4.12 Grantin~y Easements. The Board may grant and convey easements and rights
of way for utilities such as wires, conduits, piping, plumbing, water lines, telephone lines, power
lines, cable, storm drains, sewer lines, gas lines, and the like. The Board may, with Membership
approval, grant and convey easements, rights of way, parcels or strips of land in, on, over or under
any Private Street or Common Area for the purpose of constructing, operating, maintaining,
repairing, or replacing roads, streets, walkways, parkways and park areas.
4.13 Limitation on Granting Easements. Limitation on Granting Easements. Granting
any Member an easement for exclusive use of any portion of the Common Area requires Approval
of the Membership, as provided for in the Davis-Stirling Act.
4.14 Borrow Money. The Association may borrow and repay monies, as needed in
connection with the discharge of its duties, and pledge or assign Special Assessment rights, as
security for the repayment of such borrowed money. However, any loan in excess of five percent
(5%) of the annual Assessments shall require Membership Approval.
4.15 No Power to Encumber Real PropertX. The real property assets of the Association
may not be encumbered as a security for debt.
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4.16 Represent Association in Liti ag tion. On behalf of the Association, the Board may
institute, defend, settle, or intervene in litigation, arbitration, mediation, administrative
proceedings, or any other legal proceeding in any capacity necessary to represent the interests of
the Association.
4.17 Receive and Dispose of PropertX. The Association may acquire, hold, lease,
encumber, convey, or otherwise dispose of real and personal property and to take real and personal
property by will, gift, bequest or any other legal transfer. Any funds or property so received must
be used consistently with the purposes for which the Association was formed.
4.18 Limitations on Disposition of Personal PropertX. The Board may not, without
Membership Approval, dispose of during any fiscal year personal property owned by the
Association having an aggregate market value in excess of five percent (5%) of the Association's
budgeted gross expenses for that year.
4.l 9 Limitations on Transfer of Real PropertX. The Board may exchange, sell, dedicate,
or otherwise transfer real property, including the Common Area, owned by the Association only
on the following conditions:
a. Approval by a majority of the Voting Power of the Association is first obtained.
b. No exchange, sale, dedication or other transfer may include real property to
which a Member has an exclusive right to occupy.
For any exchange of real property, the property received by the Association
must be of equal or greater value than the property given.
d. Any dedication of property must only be to a public agency, authority, or utility
for such purposes and subject to such conditions as may be agreed to by the
Association.
Any election to approve an exchange, sale, dedication or other transfer must
seek approval of any amendment to the governing documents necessary to
affect the transfer.
f. The sale or other transfer of property acquired by the Association in foreclosure
proceedings is exempt from this Section.
4.20 Capital Improvements. The following applies to Common Area Capital
Improvements:
a. Defined. "Capital Improvement" means any substantial discretionary addition to
the Common Area or significant alterations to the appearance of the Properties.
A Capital Improvement is not defined to mean additions or upgrades to Common
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Area materials which are necessary or prudent to comply with building or safety
codes, or to prevent property damage or personal injury, or to reduce operating or
maintenance costs for the Common Area or to comply with Reserve component
repairs or replacements.
b. 5% Limitation. Capital Improvements may not be made to the Common Area in
any fiscal year in excess of five percent (5%) of the Association's budgeted gross
expenses for that year, without Membership Approval.
Obsolescence. In the event the Board determines that any Common Area amenity
is obsolete and the cost to remove the amenity is more than 5% of the Budget, the
Board may call for a vote of the Members to determine whether the amenity
should be removed. Any such removal shall require Membership Approval.
4.21 Vendor Contract Limitations. Except for the contracts listed below, no contract for
services shall be entered into which binds the Association for a period in excess of two (2) years,
without Membership Approval.
a. Public Utility Contract. A contract with a public utility company, if the rates
charged for the materials or services are regulated by the Public Utilities
Commission. However, the term of the contract shall not exceed the shortest
term for which the supplier will contract at the regulated rate.
b. Fire and Burglary. Contracts for terms up to three (3) years to lease or service
burglar and/or fire alarm equipment or provide protective services.
Bulk Cable Service. Contracts for terms up to five (5) years to provide cable,
Internet, or satellite communications service.
d. Insurance. Contracts for insurance, if the policies do not exceed three (3) years
duration.
4.22 .Delegation to Manager. The Board may delegate any of its duties, powers, or
functions to any qualified Person or management company to act as Manager, except (i) attending
Board meetings and voting on motions; (ii) electing officers; (iii) filling vacancies on the Board;
(iv) appointment executive committees; and (v) approving settlement agreements.
Notwithstanding any delegation of duties, however, the Manager shall act at the direction and
supervision of the Board.
4.23 Nonprofit Character of Association. Notwithstanding anything contained in these
CC&Rs to the contrary, the Association may not engage in any activity which may jeopardize the
nonprofit character of the Association.
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4.24 Discharge of Liens. If necessary, the Association shall have the power to discharge
by payment any lien against the Common Area and assess the cost thereof to the Member or
Members responsible for the existence of the lien. Prior to any Board decision to discharge a lien,
the Member or Members responsible for the existence of the lien shall be given written notice and
an opportunity for a hearing before the Board to present any defenses which may exist.
ARTICLE 5: ARCHITECTURAL CONTROL
5.1 No Improvements or Alterations Without Approval. No Improvement, excavation,
landscaping, hardscaping, fence, wall, swimming pool, painting, alteration or other work which
alters the exterior appearance of any Lot or its Improvements shall be commenced until plans and
specifications have been submitted to and approved in writing by the Architectural Committee. If
Improvements, additions, alterations, or modifications are different from those approved by the
Architectural Committee, such Improvements, additions, alterations, or modifications shall be
deemed disapproved and the Member shall promptly correct the nonconforming items to comply
with the Architectural Standards, the Architectural Committee's approvals, and City
Requirements.
5.2 No Exterior Installations. Installations of any kind, including but not limited to,
electric lines, telephone lines, television antennas, satellite dishes, machines, or air conditioning
units, on the exterior of the buildings of the Properties or that protrude through the walls or the
roof of the buildings, are prohibited except as authorized by the Architectural Committee.
5.3 Applicants in Good Standing. Only Members in Good Standing may submit
requests for approval of Improvements, additions, alterations or modifications to their Lots, or the
Common Area appurtenant to their Lots. "Good Standing" is defined to mean Members who are
not delinquent by more than sixty (60) days in the payment of any Assessment, fee, or fine, and
not found to be in violation of the Association's Governing Documents (following proper notice,
hearing, and a finding by the Board).
5.4 Right to Decorate Residence. Members shall have the right to decorate the interior
surfaces of the walls, partitions, ceilings, floors, and doors within their Residence, subject to any
restrictions or procedures found in these CC&Rs and any Rules established by the Association.
5.5 Architectural Standards. The Board may adopt, amend, and repeal Architectural
Standards. These Architectural Standards shall interpret and implement the provisions of these
CC&Rs by setting forth the standards and procedures for the review and approval of proposed
modifications, guidelines for architectural design, placement of any modification, color schemes,
exterior finishes and materials, and similar features which are recommended for use within the
Properties, provided that the Architectural Standards shall meet the minimum standards required
by these CC&Rs. In the event of any conflict between the Architectural Standards and these
CC&Rs, the CC&Rs shall prevail.
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5.6 Architectural Committee. The Board shall appoint an Architectural Committee. If
the Board does not appoint one, the Board shall automatically be deemed the Architectural
Committee. The Architectural Committee shall have the authority to approve, reject, modify, give
conditional approvals, and give limited approvals of Improvements and alterations as provided for
in the Association's Architectural Standards.
Architect. The Board may retain the services of an architect and one or more
consultants to assist the Architectural Committee in its duties. Compensation
for consultants' services shall be fixed by the Board. The cost of such
consultants and any related expenses may be charged to those Members
submitting plans for alterations and/or Improvements to their Lots. Any
significant costs must be submitted to the Member for approval before incurred
by the Association.
b. Conflicts of Interest. No Director or Architectural Committee member may
participate in the decision-making process of any architectural submittal made
by that Director or Architectural Committee member or members of their
family. Further, no Director or Architectural Committee member may
participate in the decision-making process of any other architectural submittal
if it results in a monetary benefit to the Director or Architectural Committee
member or any company in which they or members of their family have a
financial interest.
5.7 Rescinding,Approval. The Architectural Committee and/or the Board shall have the
authority to rescind approval of plans previously approved by the Association if they believe that
there is good reason to rescind such approval.
5.8 Submission of Plans. Plans and specifications in accordance with the Association's
Governing Documents, describing the .proposed Renovations, shall be submitted to the
Architectural Committee by personal delivery or certified mail. Applications are deemed approved
within forty-five (45) days from the date of submission of a complete application unless (i)
disapproved by the Committee, (ii) additional information is requested by the Committee, or (iii)
the proposed work violates the Association's Governing Documents or Building and Safety Codes,
in which case the application is automatically disapproved without action by the Committee. Any
variances must be specifically approved in writing by the Committee. Approvals by the
Architectural Committee may contain conditions or requests for modification of particular aspects
of the Member's architectural submission.
5.9 Review Fees and Construction Agreement. The Board may establish a schedule of
fees which may be charged against the submitting party to defray any costs incurred by the
Association, including architectural and/or engineering consultant fees, legal fees, and expenses
for reviewing plans. In addition, the Board may require Members to sign a construction agreement.
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5.10 Variances. The Architectural Committee may grant reasonable architectural
variances, subject to Board approval, if the Architectural Committee determines that the variance
will not: (i) constitute a material deviation from the overall plan and scheme of development within
the Properties; (ii) result in a material detriment; or (iii) create a nuisance with respect to the
Common Area or any other Member. The granting of a variance by the Board shall in no event be
deemed a variance or waiver as to any other Lot, nor shall any variance affect the applicability or
enforceability of any provision of this Article in respect to any other Lot.
5.11 En ing Bering and Code Requirements. Plans and specifications approved by the
Architectural Committee are not approved for engineering design or building code specifications.
Members shall be responsible for ensuring compliance with applicable fire and building codes,
ordinances, and specifications.
5.12 Inspection. The Association shall have the right, but not the obligation, to
periodically inspect any work approved by the Architectural Committee. Members shall allow
inspection and work may be halted and the Member fined if inspection is not allowed. Such
inspections do not relieve a Member from his/her duty to comply with the Association's
Architectural Standards and all applicable building and fire codes.
5.13 Building Department and Association Approvals. Any construction, repair,
modification, or alteration of any Improvement requiring the issuance of a building permit shall
be submitted by the Member to the appropriate governmental entity for review and approval. In
the event of a conflict in the conditions of approval imposed by the governmental entity and the
Architectural Committee, the more restrictive conditions shall control. The Architectural
Committee may impose conditions of approval which are more restrictive than conditions imposed
by governmental agencies.
5.14 Mechanics' Liens. Members shall ensure that no lien is placed against any other
Lot or against the Common Area for labor or material furnished to their Lots. If a lien is placed
against the Common Area and other Member's Lots, and the responsible Member does not
immediately cause the removal of the lien, the Association may, after written notice to the
responsible Member, pay the amounts necessary to ~ have the lien removed and levy a
Reimbursement Special Assessment against the responsible~Member for the monies advanced as
well as any fees costs incurred by the Association.
5.15 Hold Harmless and Indemnify. Approval of plans by the Association signifies only
a general conformance with its Architectural Standards and not with Building and Safety Code
compliance, lot lines, easements, or construction best practices. The Association and its
Architectural Committee, Members, Officers, Directors, employees, and agents shall not be liable
for mistakes in judgment or negligence arising out of or in connection with the Association's
approval or disapproval of plans.
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5.16 Combining Lots. No Lots may be combined without prior written Board approval.
Once combined: (i) the Percentage Interest in the Common Area allotted to the combined Lots
shall be equal to the sum of the Percentage Interests in the Common Area of each of the combined
Lots; (ii) the Assessments due and owing on the combined Lots shall be equal to the sum of the
Assessments levied against each of the respective Lots so combined; and (iii) the Owner of the
combined Lots shall continue to have the same number of votes assigned to the Lots before they
were combined.
5.17 No Right to Divide Lots. No Member shall have the right to divide any Lot;
provided, however, that once two or more Lots have been combined, the Owner of such combined
Lots 'may seek written approval of the Board of Directors to divide the Lots and thereby restore
them to their original dimensions and footprint.
5.18 Square Footage and Setbacks. The minimum and maximum square footage of
structures and their setback requirements from lot lines shall comply with the Association's
Architectural Standards.
5:19 View Restrictions. Each Owner, by acceptance of a deed or other conveyance of a
Lot, acknowledges that any construction or Improvement by the Association or any other Owner,
or any Owner of any other property, may change, impair, obstruct or otherwise affect any view
that such Owner may have enjoyed at the time of the purchase of his Lot. The Governing
Documents do not contain any provisions intended to protect any view or to guarantee that any
views that an Owner may have enjoyed will not be impaired or obstructed in the future by changes
to other property. Each Owner further acknowledges that any rights acquired do not include the
preservation of any view and further consents to such obstruction and/or impairment. No
representations or warranties of any kind, express or implied, have been given by the Association,
or any of its officers, Directors or agents. Owner agrees to hold the Association; and all of its
officers, Directors and agents free of liability from such damages, costs, expenses or charges
incurred in connection therewith, such as, but not limited to, attorneys' fees and court costs, and
costs arising from any changes, obstruction or impairment of the view from such Owner's Lot.
5.20 Drainage. No Member or Member's family, guests, invitees or Tenants shall change
the established drainage patterns over a Lot without (i) making adequate provisions for proper
drainage in accordance with applicable building codes, which shall not adversely affect the
property of others, and (ii) written approval of the Architectural Committee.
5.21 Occupancy of Unfinished, Temporary or Mobile Structures Prohibited. No trailer,
RV, bus, mobile home, tent, shack, garage, temporary building or structure of any kind shall be
occupied or lived in at any time. Permanent residential dwellings shall not be occupied or lived in
until they have been completed and the exterior is made to comply with the Association's
Architectural Standards.
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5.22 Removal of Temporary Buildings. Temporary buildings or structures used during
construction or remodeling shall be removed immediately after the completion of construction.
5.23 Diluent Construction. The construction of any building or structure shall be
prosecuted diligently. and continuously from the time of commencement until fully completed, and
all structures, once the foundations are erected, shall be completed in eighteen (18) months.
5.24 Landscaping Following Construction. Within two (2) months of the completion of
any construction work during which the Association's landscaping requirements were waived, or
within any shorter time frame required by the Architectural Committee, Members shall landscape
their Lots as may be required by the Association's Architectural Standards.
5.25 Waiver of Liability. Neither the Architectural Committee or its members nor the
Association or its Officers, Directors, employees or agents shall be liable for any damage, loss or
prejudice, suffered or claimed on account of the Architectural Committee's review, approval, or
disapproval of any plans, drawings or specifications, or the conformance of the construction with
the approved plans.
ARTICLE 6: LOTS, INCLUDING PATIOS
6.1 Member Maintenance of Patios. Members shall, at their sole expense, have the duty
to maintain, service, waterproof, and repair the Patios, excluding the landscaping.
a. Clean and Sanitary. Members shall keep their Patios in a clean and sanitary
condition.
b. Waterproofing. Members shall maintain, repair, and replace surface finishes
and waterproofing of the residence, including Patios associated with their Lots.
Doors and Windows. Members shall repair and maintain all doors, door casings,
thresholds, flashing, weather stripping, waterproofing, caulking, door guides,
windows, including, but not limited to glass, window flashings, and all window
components, and door and window sealants..
d. Structural Elements. Members shall be responsible for the cost of repairing and
replacing any structural elements damaged by their failure to properly maintain,
repair, and replace the waterproofing elements on their Lot.
6.2 Right to Inspect and Repair. To ensure compliance, the Association shall have the
right to enter Patios to inspect, maintain, repair, and replace them. Failure by a Member to maintain
a Patio as required by this Article shall give the Association the right to maintain and repair it in
accordance with the notice and repair provisions of these CC&Rs. The cost of such maintenance,
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repairs, and replacements shall become an Assessment against the Lot, as provided for by these
CC&Rs.
6.3 Damage. Members shall be liable for any damage to their Patios caused by the acts,
omissions, or willful misconduct of such Members, Residents, guests, or their family or pets. The
Association shall cause the damage to be repaired and the expenses related to such repairs and
replacements assessed against the Member.
6.4 Patio Alterations. Members .shall not have the right to paint or alter their Patios
without the prior written approval of the Architectural Committee.
6.5 Dangerous Acts. No Member shall throw, or permit to be swept or thrown, any dirt,
water, objects, or other substance of any kind whatsoever from his/her Lot, its doors or windows.
6.6 Unsightly Objects. In no event shall unsightly objects (including, but not limited
to, laundry, mops, appliances and, bicycles) be placed or stored on a Patio where they may be seen
by other Members or by the public in general.
6.7 Patio Furniture. Members shall have the right to furnish their Patios with outdoor
furniture, as provided for iri the Rules and Regulations.
ARTICLE 7: GENERAL RESTRICTIONS
7.1 Antennas. No antennas for transmitting or receiving radio signals or any other form
of electromagnetic radiation may be installed, except as provided in the Association's Rules and
Regulations, its Architectural Standards, and applicable law.
7.2 Barbecues. There shall be no exterior fires whatsoever except for natural gas,
propane or electric barbecues in UL-approved confined receptacles designed for such purposes if
permitted in the Rules and Regulations. The hours of operation, type of equipment and rules
regarding their operation shall be in the Rules and Regulations. Residents shall take all reasonable
precautions to minimize smoke from entering other Lots.
7.3 Drones. A "drone" is defined as a powered aerial vehicle that flies autonomously
or is remotely piloted. The operation of drones in the Properties, if allowed by the Association,
must comply with the Association's Rules and Regulations. No person may operate, cause, allow
or authorize the operation of a drone in the airspace above any portion of the Properties in such a
way as to invade the privacy of Association members, guests, residents or vendors, whether
equipped with a camera or otherwise. Prior written approval of the Board of Directors must be
given for drone operations that fall outside the Rules and must comply with such terms and
conditions as the Board may deem appropriate under the circumstances.
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7.4 Flammable Materials. Under no circumstances may explosives, fireworks, or
highly flammable or highly corrosive materials be stored or used by Members, Members' Tenants
or their respective family, invitees, or guests in the Properties.
7.5 Health/Safety Hazards. Members shall not permit conditions which constitute a
health, safety, or fire hazard to exist on the Properties.
7.6 Spas and Hot Tubs. No spa or hot tub may be installed in any Lot without the written
approval of the Board. Such installations shall meet the requirements specified in the Architectural
Standards. '
7.7 Laundry. No clothesline or drying rack will be erected, maintained or used within
sight of any Common Area or other Lot, except in the backyard of a Lot. The Association may
adopt reasonable rules and restrictions regarding the use of clotheslines and drying racks as
allowed by law. No item may be draped over fences, trees, or Patios.
7.8 Nudity. Public displays of nudity are prohibited.
7.9 Nuisance. No Member may cause or permit to be caused anything which constitutes
a nuisance.
a. Unreasonableness. To constitute a nuisance; the activity must be such that it
causes an unreasonable disturbance or annoyance, be unreasonably injurious to
health, be indecent, or be unreasonably detrimental to Persons or property.
b. Secondhand Smoke. Any "exfiltration" (air flow outward through a wall,
building envelope, window, etc.) of any noxious odor or smoke, including
tobacco smoke, from a Lot, whether through windows, doors, vents, or other
means, is prohibited. It is the responsibility of the Member causing such
exfiltration of smoke to prevent such exfiltration.
Allergies. Residents with allergies or sensitivities must, at their own expense,
take precautions to protect themselves against commonplace levels of noise,
odors, dust, smoke, gases, pollen, or other environmental pollutants.
d. Board Determination. Because a nuisance is largely subjective, the Association
is not obligated to become involved in disputes where, in the opinion of the
Board, the alleged disturbance does not constitute a nuisance. Despite the
Board's determination, the parties retain the right to take appropriate legal
action against each other without involving the Association.
7.10 Occupancy Restriction. The maximum number of Persons who may reside on any
Lot is two (2) Persons per bedroom plus one additional Person for the Lot. For purposes of this
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restriction; "reside" means the use, residency, or occupancy of any Lot by any Person for more
than thirty (30) consecutive days or more than sixty (60) aggregate days, whether or not
consecutive, in any one calendar year.
7.11 Grandfathered Occupancx. On Lots where the number of Persons residing in a
Residence on the date of recordation of these CC&Rs is in violation of these CC&Rs, those Persons
residing in excess of the maximum number of Persons permitted may continue to reside on the
Lot; provided, however, the excess Residents are registered with the Association and once they
cease to reside in the Lot, cannot be replaced. Along with other remedies provided for in these
CC&Rs, the Board may impose a water usage surcharge per Person residing in a Lot in violation
of the occupancy restriction.
7.12 Obstruction of the Common Area. No Common Area shall be obstructed or used
for other than its intended purpose, except as designated by the Board. --
7.13 Quiet Enjoy. No`one may engage in any abusive or harassing behavior or any
form of intimidation or aggression, whether verbal or physical, against other Members, Residents,
guests, invitees, members of the Board, or the Association's management, employees, agents, or
vendors. Because the breach of quiet enjoyment is largely subjective, the Board may choose to act
only against egregious breaches. In the event the Association chooses not to act on a complaint of
breach of quiet enjoyment, or the complaining party believes the Association's action is not
sufficient, such party may take legal action to enforce this provision against other Residents, but
specifically waives his/her right to take action against the Association and its officers, directors,
employees, and agents in their handling of the party's complaint.
7.14 Residential Use. No Member shall use or permit his/her Lot or any portion of it to
be occupied or used for any purpose other than a private residential dwelling. Lots shall not be
used in any way, directly or indirectly, for any business, commercial, manufacturing, mercantile,
storing, vending or other nonresidential purpose. Notwithstanding the foregoing, Residents may
use a room in their residence as a home office, provided that the primary use of the residence is as
a residence, no advertising or signage is used in any manner in connection with the office use,
package deliveries are kept to a minimum, and no customers, clients or patients frequent the Lot.
The Board may adopt Rules regarding the use of such offices.
7.15 Roof Restricted Access. Members and their families, Lot Residents, guests,
employees, and agents are prohibited from entering onto the roofs without the prior written consent
of the Board.
7.16 Sale of Lot. Open houses, brokers' caravans and other matters relating to the sale
of a Lot shall be provided for in the Rules and Regulations.
7.17 Satellite Dishes. Satellite dishes may only be installed as provided for in the Rules
and Regulations, Architectural Standards, and applicable law.
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7.18 S, igns. No sign, poster, flag, banner, notice, nameplate, card, or advertisement of
any kind may be displayed to the public view on or from,any Lot or in or on any Common Area,
except as allowed by law. Owners may display one sign in a Lot window which is of reasonable
dimensions and design, advertising that the property is for sale or lease, as allowed by law and
subject to any restrictions in the Rules and Regulations.
7.19 Smoking and vaping. Restrictions on smoking, vaping and e-cigarettes in the open
Common Area shall be specified in the Rules and Regulations. "Smoking" shall include, but not
be limited to, any practice by which a substance, whether tobacco, marijuana or any other
substance, is burned for the purpose of inhaling its smoke. "vaping" means inhaling water vapor
to obtain nicotine, cannabis or any other substance. "E-cigarette" means an electronic device that
vaporizes liquid nicotine, cannabis or any other substance. Additional Common Area restrictions
on Smoking, vaping and E-cigarette use may be adopted by the Board.
7.20 Marijuana and Controlled Substances. Growing or distributing marijuana or
medical marijuana, whether or not for personal use, as well as manufacturing, synthesizing,
producing or distributing any illicit or controlled substances as defined by applicable state and/or
federal laws is strictly prohibited in the Properties.
7.21 Use of Independent Contractors. Members may use independent contractors to
perform work in their Lot. Such contractors shall be licensed and insured. The Association may,
but is not required to, and is specifically relieved of any responsibility or liability for policing this
provision._Members shall be liable for any injury to Persons or damage to the Common Area or
Lots, and any personal property caused by the acts car omissions of such Member's contractor. The
Association may, in its discretion repair, restore or replace such damaged property and may impose
a Reimbursement Special Assessment against the liable Member and that Member's Lot for all
costs, expenses and attorney fees incurred by the Association in connection with the damage. The
Reimbursement Special Assessment may become a lien against the liable Member's Separate
Interest enforceable by the sale of the Member's Lot under Civil Code sections 2924, 2924(b), and
2924(c).
7.22 Window Coverings. Appropriate window coverings must be installed on windows
at all times. The color of such window coverings shall be in harmony with the cxterior of the
structure. No window may be covered by paint, aluminum foil, newspapers, bed sheets, cardboard,
blankets, or other similar items.
7.23 Drains. There shall be no interference with the established drainage pattern in the
Properties unless an alternative provision is made and approved in advance in writing by the
Architectural Committee.
7.24 Drilling and Exploration. No Lot shall be used in any manner to explore for,
remove, refine, or store any water, gasoline, oil, hydrocarbons, minerals, gravel, earth, or earth
substances of any kind.
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7.25 Increased Insurance Rates. No Member shall permit anything be done or kept in or
on any Lot or any Common Area which will increase the rate of insurance in or on any other Lot
or the Common Area, or which would result in uninsurability or in the cancellation, suspension,
modification or reduction of insurance in, on or covering any other Lot, Common Area or item of
personal property within the Properties. If, by reason of the occupancy or use of any portion of the
Properties by any Member, the rate of insurance on any policy held by the Association shall be
increased, such Member shall become personally liable to the Association for any increase in
insurance premiums caused thereby and the cost of the increase shall be assessed to such Member
and his/her Lot as a Special Assessment.
7.26 Machinery and Equipment. No machinery or equipment of any kind shall be placed,
operated or stored upon or adjacent to any Lot except for such machinery or equipment as is usual
and customary in connection with the use, maintenance, repair, or construction of a Lot or its
Improvements, and only for as long as is necessary to complete such maintenance, repair, or
construction.
7.27 Sanitary Conditions. Members shall maintain and repair their Lots and all
Improvements in a clean and sanitary condition and not allow rubbish or debris of any kind to
accumulate so as to render any Lot or portion of a Lot unsanitary, unsightly, or offensive.
7.28 Storage. No Lot shall at any time be used for open air storage of building materials,
vehicles, implements, tools, furniture, landscaping materials or equipment, irrigation pipes or
apparatus, junk, trash or any other things whatsoever; provided, however, that building and
landscaping materials, tools or equipment may be placed and maintained on construction sites as
provided for in the Architectural Standards.
7.29 Tanks and Receptacles. Every tank for the storage of fuel installed outside any
structure on a Lot shall be either buried below the surface of the ground or screened to the
satisfaction of the Architectural Committee by fencing or shrubbery.
7.30 Trash Containers. Every outdoor receptacle for trash, rubbish or garbage shall be
placed, screened, and kept as provided for in the Association's Rules and Regulations.
7.31 Utility Service. No lines, wires or other devices for the communication or
transmission of electric current or power, including telephone, television and radio signals, shall
be constructed, placed or maintained anywhere in or upon any Lot unless the same shall be
contained in conduits or cables constructed, placed and maintained underground or concealed in,
under or on buildings or other approved structures. Nothing herein shall be deemed to forbid the
erection and use of temporary power or telephone services incident to the construction of approved
buildings.
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ARTICLE 8: LEASING AND OWNERSHIP LIMITATIONS
In addition to restrictions in Article 7 that Members may not use their Lots for business,
commercial, manufacturing, mercantile, storing, or vending purposes, the following residential
restrictions shall apply:
8.1 No Transient Use. Lot Improvements may not be rented for transient, hotel,
fractional or similar purposes or any time-sharing arrangement under which occupancy rights for
specific periods are distributed between two or more persons. Improvements may not be advertised
in any manner that would give the appearance they are available as short-term, transient or time-
share rentals. Lots or Lot Improvements shall .not be listed with Airbnb, VRBO, Flipkey,
Homeaway, or any other service that promotes short-term, transient or time-share rentals.
8.2 Lease Requirements. No Member shall lease less than the entire Residence nor shall
the lease be for an initial term of less than one (1) year. If a Tenant vacates after less than one (1)
year, the Member may not re-lease the Residence until the expiration of one (1) year from the date
the Tenant moved into the Residence unless the Member applies for and receives a hardship
exception from the Board.
8.3 Lease Addendum. Any lease or rental agreement between Member and Tenant shall
be in writing. In addition, Member, Tenant, and the Association shall execute a "Lease Addendum"
supplied by the Association. Member and Tenant shall agree, at a minimum, to the following terms:
(i) the lease is for the entire Residence; (ii) Member transfers any right to use Common Area
facilities to the Tenant; (iii) no assignments or subleases are permitted; (iv) the lease is for not less
than one (1) year and Member cannot re-lease the Residence if Tenant moves out before Tenant's
one year lease has been completed; (v) Tenant agrees to comply with the Association's Governing
Documents and be subject to the same disciplinary procedures and fines as Members; (vi) Member
assigns rents to the Association in the event Member becomes sixty (60) days delinquent in the
payment of Assessments to the Association; (vii) Tenant shall carry renter's insurance; (viii)
Member grants the Association the power to institute an unlawful detainer action on his/her behalf
for.violation of the terms of the Lease Addendum; and (ix) in the event of a conflict, the terms of
the Lease Addendum supersede the terms of any other agreement between Member and Tenant.
In the event a Lease Addendum is not executed as described above, Member and Association shall
nonetheless be bound by the terms of this section as though the Lease. Addendum had been
executed.
8.4 Governing Documents. Members shall provide their Tenants with the Association's
Rules and Regulations and ensure compliance with them.
8.5 Transfer of Common Area Privileges. Any Member residing off-site and whose
Residence is occupied by others automatically relinquishes to their Residents the Member's rights
to use the Association's Common Area facilities until the Member re-takes possession of the
Residence and the Lot.
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8.6 Transfer of Occupancx. Members living offsite shall promptly provide the
Association with the name, address, phone number, and email address of all Lot Residents and any
change in occupancy.
8.7 Repair Damage. Members shall be liable for any and all damage to the Lots or
Common Area, and any personal property when the cause of such damage originates from that
Member's Lot, or which was caused by the. acts or omissions of such Member, Member's Tenant,
or their respective family, guests, invitees, or pets. The Association may in its discretion repair,
restore or replace such damaged property and may impose a Reimbursement Special Assessment
against the liable Member and that Member's Lot for all costs, expenses and attorney fees incurred
by the Association in connection with the damage. The Reimbursement Special Assessment may
become a lien against the liable Member's Separate Interest enforceable by the sale of the
Member's Lot under Civil Code sections 2924, 2924(b), and 2924(c).
8.8 Unlawful Detainer. Members who lease their Lots shall be responsible for assuring
their Tenants comply with the Association's Governing Documents. A Member's failure to take
legal action against his/her Tenant who is in violation of the Governing Documents (including the
institution of proceedings in unlawful detainer) within ten (10) days after receipt of written demand
to do so from the Board shall entitle the Association to institute unlawful detainer proceedings on
behalf of such Member and against the Tenant. Any expense the Association incurs, including
attorneys' fees and costs of suit, shall become a Special Assessment against the Lot.
8.9 Assignment of Rents. As security for the payment of Assessments and other sums
owed to the Association, Members who lease their Lots hereby pledge their rights as landlords
(including the right to receive rent) to the Association. In the event a Member becomes delinquent
in payment of Assessments to the Association, the Association may require the Tenant to direct
any and all rent payments to it until such deficiencies have been paid in full. Members shall have
no right to collect these amounts from Tenants and may not evict Tenants for complying with the
Association's demand for rents.
8.10 No Criminal Activity. No Person may reside in the Properties if they engage in
criminal activities. For purposes of this section "criminal activities" means drug-related activities
(including the illegal manufacture, sale, distribution, use or possession of a controlled substance),
gang related activities, unlawful use or discharge of firearms, prostitution, or any misdemeanors
or felonies enumerated in the .California Penal Code. For purposes of this section "reside" means
the use, residency or occupancy of any Residence by any Person for more than five (5) consecutive
days or more than ten (10) aggregate days, whether or not consecutive, in any one calendar year.
In addition, no Owner of a Lot shall permit, by rental agreement or otherwise, Persons who engage
in criminal activities to reside on their Lot.
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ARTICLE 9: PETS
9.1 Pet Limitation. Usual domesticated dogs, cats, fish, and birds may be kept as
household pets. No more than two (2) dogs or two (2) cats or one of each may be kept as household
pets. No animal shall be kept, bred, or maintained: (i) for any commercial purpose; (ii) in
unreasonable numbers; or (iii) for any purpose that would involve any odor, noise, or other
nuisance which would unreasonably disturb the use and enjoyment of any portion of the Properties
by other Members. The Board may set additional restrictions, rules, and regulations regarding the
quantity, kinds and sizes of pets, and tanks which may be kept and- other pet issues.
9.2 Assistance Animals. An animal otherwise prohibited by these CC&Rs, which is
kept by a Resident for the purpose of servicing the Resident's qualified disability, may be kept by
such Resident provided the animal is properly cared for (i.e., kept healthy, clean, and properly
groomed and waste material is properly disposed of) and not unruly or disruptive (e.g., barking,
growling, running loose, displaying aggressive behavior, etc.). All pet rules shall apply to
assistance animals unless contrary to law.
9.3 Nuisance. Members shall be liable to the Association and other Members for any
damage to Person or property or nuisance noise caused by the pets of such Members, Members'
Tenants or their respective family, guests, or invitees. The Board shall have the right to prohibit
any pet which, in its opinion, constitutes a nuisance to other Members pursuant to evidence
provided at a noticed hearing.
9.4 Dangerous Animals. No animal may be kept in the Properties which the Board has
determined to be aggressive or dangerous pursuant to evidence provided at a noticed hearing. Pets
that exhibit aggressive or dangerous behavior shall, upon request of the Board, wear a muzzle
while in the Common Area until a determination is made by the Board as to whether the pet will
be allowed to remain in the Properties. The Association may restrict categories of animals which
are dangerous or have aggressive tendencies, as designated by the insurance industry or a
governmental agency.
9.5 Liability. Every Member shall be liable for any injury to Persons or property caused
by any pet brought or kept within the Properties by the Member, Member's Tenant or their
respective family, guests, or invitees. '
9.6 Control. No pets shall be allowed'in the Common Area, except as may be permitted
by the Rules. No dog shall enter the Common Area, except while on a leash which is held by a
Person capable of controlling it. The Association may cause any unleashed dog found within the
Common Area to be removed to a pound or animal shelter under the jurisdiction of the city or
county in which the Properties is located.
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ARTICLE 10: VEI~ICLES AND PARKING
10.1 Management of Parkin. The Association shall manage and control the use of all
Common Area parking and streets.
10.2 Restricted Parkin. The following types of permitted vehicles may be parked in
garages: automobiles, trucks, motorcycles, and mopeds. Vehicles shall be parked completely
within the garage. No RV, camper, boat, recreational water craft, trailer, or any other similar
vehicle is permitted in any portion of the Properties. Only permitted vehicles may be parked in
outdoor parking spaces. -
10.3 Commercial Vehicles. Commercial vehicles, including pickup trucks 3/4-ton
capacity or larger panel trucks, tow trucks, stake bed trucks, tank trucks, dump trucks, step vans,
concrete trucks, taxis, buses, vans designed for ten (10) people or more, vehicles with commercial
signage, and the like, are prohibited, except as provided in the Rules and Regulations.
10.4 Assigned Parking. Members may be assigned parking spaces for their exclusive
use. Such use may be suspended for delinquencies and rules violations. It is each Owner's sole
responsibility to confirm that his/her vehicle can fit within the Owner's assigned parking space(s).
10.5 Guest Parkin. Guest parking is limited, and no vehicle shall be permitted to park
in guest parking, except as provided for in the Rules and Regulations. Members' guest parking
may be suspended for delinquencies and rules violations.
10.6 Renting of Parking Spaces. No parking space may be rented to or leased to a non-
Member, except to a Tenant in connection with the lease of a Lot. However, Members may rent
space on a month-to-month basis from other Members.
10.7 Proper Operating Condition. All vehicles must be maintained in proper operating
condition so as not to be a hazard or nuisance by noise, exhaust emissions, or appearance. All
vehicles must carry current registration tags and be insured.
10.8 Limited Operation. The engines of vehicles shall not be allowed to operate in the
Common Area except as may be necessary to move the vehicle into or out of the Parking Areas.
10.9 Electric Vehicle Char ing Stations. Members may, with written approval of the
Architectural Committee, install at their own expense an electric charging station. The Association
may impose reasonable requirements on the location and installation of the equipment. All
electrical work must be done by a licensed electrician with appropriate permits from the Building
Department. Members must also comply with Section 4745 of the Civil Code or any successor
statute.
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10.10 Noise Limitation. All vehicles must be configured so as to provide for their quiet
operation.
10.11 Repair of Vehicles. No Person shall construct, repair, or service any vehicle within
the Properties, except for emergency repairs to the extent necessary for the movement of the
vehicle to a proper repair facility.
10.12 Washing of Vehicles. Vehicles may not be washed or detailed in the Properties.
10.13 Fluid Leaks. Members must keep their driveways, Common Area, and streets in
front of their Lots free of fluids such as oil, radiator coolant, brake fluid, power steering fluid, etc.
Members who fail to do so may be fined or may be subjectto a Reimbursement Special Assessment
for the cost of cleaning the affected areas.
10.14 Theft or Damage. The Association shall not be liable for any loss or damage
suffered by any Member, Tenant or guest by reason of theft of or damage to any Vehicle or Vehicle
contents, unless caused by the Association's intentional misconduct or gross negligence.
10.15 Impeding Access. No vehicle shall be parked in such a manner as to impede or
prevent ready access to any other driveway or Common Area entrance or exit.
10.16 Garages. Garages may not be converted to any use other than the storage of
vehicle(s). Members are responsible for garage door hardware and for maintaining the doors in
proper working order. It is each Owner's sole responsibility to confirm that the garage is accessible
for the Owner's vehicle.
ARTICLE 11: ENFORCEMENT OF GOVERNING DOCUMENTS
11.1 Association Enforcement Rights. In addition to any other rights described in these
CC&Rs and without waiving the Association's right to institute other enforcement measures, and
subject to the notice and hearing provisions in the Bylaws, the Governing Documents may be
enforced by any or all of the following, as may be appropriate:
a. Monetary Penalties. -The Board may assess reasonable monetary penalties for
violations of the Association's Governing Documents by a Member, Member's
Tenant or their respective family, Lot Residents, invitees or guests. Such
Member shall be liable for all costs of collection, including reasonable
attorneys.' fees, court costs, and related expenses.
b. Suspend Common Area Privileges. Subject to the notice and hearing provisions
set forth in the Bylaws, the Board may temporarily suspend the Common Area
privileges of Members, Member's Tenants and their respective family, invitees,
and guests for their failure to comply with the Association's Governing
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Documents. Any such suspension shall be for a period of time not to exceed
thirty (30) days for each noncontinuing violation. For continuing violations, the
suspension may be imposed for as long as the violation continues.
c. Suspend Voting Rights. Subject to the notice and hearing provisions set forth in
the Bylaws, the voting rights of a Member may be suspended for continuing
violations of the Governing Documents. Once suspended, a Member's voting
rights shall remain suspended until such continuing violation is cured.
d. Judicial Enforcement. A lawsuit for damages and/or injunctive relief may be
filed, whether or not the relief sought is for negative or affirmative action.
11.2 Cumulative Remedies. The respective rights and remedies, provided by these
CC&Rs, by law, or available in equity, shall be cumulative and the exercise of any one or more of
such rights or remedies shall not preclude or affect the exercise, at the same or at different times,
of any other such rights or for the same or different failures of the Members. or others to perform
or observe any provision of these CC&Rs.
11.3 Failure to Enforce Not a Waiver. Failure to enforce the Governing documents,
whether by the Board or any Member or other Person entitled to enforce them, shall in no event
be deemed a waiver of the right to do so. Waiver or attempted waiver of any provision of these
CC&Rs with respect to a given Lot shall not be deemed a waiver as to any other Lot. Additionally,
violation of any provision hereof with respect to any Lot or Lots shall not affect the applicability
or enforceability of any provision of these CC&Rs to any other Lot.
11.4 Remedy at Law Inadequate. Remedies at law for violation of the Association's
Governing Documents are inadequate and equitable and injunctive relief may be sought and
awarded.
11.5 Right of Action Against Buyer. Failure by a Member to correct Lot violations prior
to the transfer of title to the Lot shall give the Association the right to enforce compliance against
the buyer.
11.6 Right to Request Identification. All Persons using the Association's Common Area
facilities must present proper identification when so requested by the Association.
11.7 Attorneys' Fees. In the event any party initiates any action or proceeding to enforce
or interpret the Governing Documents or California law relating to the Properties, the
substantially-prevailing party shall be awarded reasonable attorneys' fees and costs, including
reasonable experts' fees.
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ARTICLE 12: RIGHT OF ENTRY
12.1 Limited Right of Entry. During reasonable hours and subject to the notice
requirements contained in this Article, the Association's representatives, employees, and vendors
may enter Lots, or the Common Area: (i) to inspect, maintain, repair, and replace the Common
Area as required by these CC&Rs; or (ii) to mitigate or repair damage; or (iii) to inspect Lots to
ensure compliance with the Governing Documents. Such Persons, acting in good faith, shall not
be liable for trespass.
12.2 Notice of Entry. The Association shall give at least three (3) business days' written
notice if by personal delivery and five (5) days if by first-class mail to the Resident and the Lot
Owner, stating the purpose for the entry and the time of the entry.
12.3 Avoid Unreasonable Interference. The right of entry shall be exercised in such a
manner as to avoid any unreasonable or unnecessary interference with the possession, use, and
enjoyment of the Member or Resident of such Lot.
12.4 Emer~enc.~try. In the event of an emergency, the Board or its authorized
representative may enter the Lot without permission and shall not be subject to liability to the
Member or occupant. Such entry shall not constitute trespass or any other wrongful act. If it is
necessary for the Association to damage or destroy property to gain access to the Lot, the Member
shall have no right of action against the Association or its representatives. However, the
Association shall repair the damage if the emergency did not originate in 'the Lot. Prior to
emergency entry, if feasible, the Board shall make a good faith effort to give notice.
12.5 Refusal to Allow Entry. In the event the Resident refuses to allow entry for any
reason authorized in these CC&Rs, the Association shall have the right to assess against the
Member all expenses including reasonable attorneys' fees (regardless of whether legal proceedings
are instituted) incurred by the Association arising from the Resident's refusal to allow entry. Such
fees and expenses shall become a Reimbursement Special Assessment against the Member and
shall be fully enforceable by all means provided for in these CC&Rs including lien and foreclosure.
12.6 Damage Repaired by Association. Any damage caused by the Association to the
Common Area and Lot Improvements shall be promptly repaired by the Association to original
building standards. The Association shall have the right to seek reimbursement from responsible
parties that gave rise to such damage and repairs.
ARTICLE 13: ASSESSMENTS
13.1 Purpose of Assessments. The general purpose of Assessments is to provide for the
recreation, health, safety, and welfare of the Members, enforce and comply with the Governing
Documents, manage the Properties, enhance the quality of life in the Association, improve,
maintain, repair, and replace the Common Area, provide for the acquisition and maintenance of
44
property, services and facilities devoted to these purposes, and for any. action or undertaking on
behalf of the Association.
13.2 Regular Assessment. The Board shall levy Regular Assessments in an amount
sufficient to provide for the performance by the Board of each and every one of its powers and
duties provided, however:
a. 20% Limitation. Pursuant to the Davis-Stirling Act, the Board shall not, without
the approval of Members casting a majority of the votes with Quorum present,
impose a Regular Assessment which is more than twenty percent (20%) greater
than the Regular Assessment for the immediately preceding fiscal year.
Quorum for the purposes of this provision means more than fifty percent (50%)
of the Members of the Association.
b. Proration of Regular Assessments. Regular Assessments shall be allocated .
among Members and their respective Lots as follows: thirty percent (30%) shall
be allocated to each of Lot 1 and Lot 2 and twenty percent (20%) shall be
allocated to each of Lots 3 and 4.
c. Payable Monthly. Regular Assessments shall be payable by each Member
against whom assessed in twelve (12) equal monthly installments on the first
day of each calendar month or at such other dates and in such other installments
as the Board shall determine. Assessments for new Members shall be prorated
in the first month of membership according to the date on which the individual
becomes a Member.
d. Written Notice. Written notice of any increase in Regular Assessments shall be
sent by first-class mail to each Member not less than thirty (30) days nor more
than sixty (60) days prior to the increased Assessment becoming due.
e. Modification of Assessment. The Board may modify the Regular Assessments
during the course of a fiscal year if necessary to conform to a revised estimate
of. costs and expenses. However, if the aggregate increase exceeds twenty
percent (20%) of the Regular Assessment for the immediately preceding fiscal
year, the Board must obtain the approval of Members pursuant to the Davis-
Stirling Act. If an annual Regular Assessment is not published for a new fiscal
year, the Regular Assessment for the prior fiscal year shall apply and govern
each Member's payments until changed by a new Regular Assessment.
13.3 Special Assessment. In addition to the Regular Assessment, the Board may levy a
"Special Assessment" for any purpose necessary for the Association to carry out its duties;
provided, however:
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a. 5% Limitation. Pursuant to the Davis-Stirling Act, the Board shall not, without
the approval of Members casting a majority of the votes with Quorum present,
impose a Special Assessment which is more than five percent (5%) of the
budgeted gross expenses of the Association for such fiscal year. Quorum for
purposes of this provision means more than fifty percent (50%) of the Members
of the Association.
b. Proration of Special Assessments. Special Assessments shall be allocated
among Members and their respective Lots as follows: thirty percent (30%) shall
be allocated to each of Lot 1 and Lot 2 and twenty percent (20%) shall be
allocated to each of Lots 3 and 4.
Reimbursement Assessments. Special Assessments may also be levied against
individual Members for reimbursement of expenses incurred by the Association
arising out of actions or omissions of such Member, Member's Tenant, family,
guests, invitees or pets. As provided elsewhere in these CC&Rs, such expenses
shall include, but not be limited to: (i) enforcing compliance with the
Associatio.n's Governing Documents; (ii) mitigating or repairing damage to
Association property or the Common Area; (iii) collecting delinquent
Assessments; (iv) attorneys' fees and costs; and (v) materials and services
provided by the Association to individual Members, Tenants or their respective
family, guests, or invitees.
d. Payment Schedule. Special Assessments shall be payable by each Member
against whom assessed either monthly or at such dates and in such installments
as the Board shall determine.
Written Notice. Written notice of Special Assessments shall be sent by first-
class mail to each Member not less than thirty (30) days nor more than sixty
(60) days prior to the Assessment becoming due.
13.4 Emergency Assessment. In emergency situations, the Board may increase Regular
Assessments beyond twenty percent (20%) or impose Special Assessments above five percent
(5%) only as provided for by law.
13.5 Deposit of Assessments. All sums received by the Association shall be promptly
deposited into accounts clearly designated in the Association's name.
a. Commingling. The Association shall maintain separate accounts for its
operating funds and its Reserves, respectively, and no funds from those separate
accounts shall be commingled at any time.
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b. Interest. No Member shall have the right to receive interest on any such funds
deposited. .
13.6 Reserves. All sums assessed and collected by the Association which are budgeted
to fund Reserves for anticipated long-term maintenance, repair, and replacement of Common Area
Improvements, the cost of which would not ordinarily be incurred on an annual basis, shall:
Be Segregated. Be received in trust by the Board, set aside and segregated from
the other monies and not be commingled with the Association's Operating
Account.
b. Be Invested. Be invested in low-risk investments. Reserves shall be deposited
in financial institutions authorized to do business in California and where the
Association's deposits are insured against loss. Alternatively, the Association
may deposit funds with brokerage houses or institutions which are members of
the Financial Industry Regulatory Authority and where the Association's
deposits are insured against loss.
c. Require Two Signatures. Be withdrawn from the Reserve account only upon
approval by the Board and the signature of two (2) members of the Board.
d. Not Be Reimbursed. All contributions to the Reserves, as well as interest earned,
are for the benefit of the Association and not to the benefit of any individual
Member. As such, contributions and interest are not refundable to Members
when they cease to be Members of the Association.
ARTICLE 14: ENFORCEMENT OF ASSESSMENTS
14.1 Liability for Assessments. Assessments, together with charges, interest, costs, and
attorneys' fees (regardless of whether legal proceedings are instituted), shall be a charge on the
land and shall be a continuing lien upon the property against which each such Assessment is made.
In addition, Members shall be personally liable for any and all Assessments provided for by these
CC&Rs, together with any accompanying late charges, interest, costs, attorneys' fees (regardless
of whether legal proceedings are instituted), and penalties as may be authorized under these
CC&Rs. All Members owning a partial interest in a Lot shall be personally liable, jointly and
severally, for the entire amount of any and all Assessments against such Lot.
14.2 Enforcement Rights. Any Assessment made in accordance with these CC&Rs shall
be the separate debt of each Member against whom the same is assessed. In addition to any other
rights provided for by law or described in these CC&Rs, the Board has the right to collect
delinquent Assessments as follows:
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a. Late Fees and Interest. Unpaid Assessments shall be deemed delinquent fifteen
(15) days after they are due and shall be subject to a late charge of the greater
of either ten percent (10%) or Ten Dollars ($10.00), which may not be imposed
more than once on any delinquent payment, and interest at the rate of twelve
percent (12%) per annum, which may commence thirty (30) days after the
Assessment becomes due.
File Suit. The Association may commence and maintain a lawsuit directly on
the debt without waiving its right to establish a lien and initiate foreclosure
against the Member's Lot for the delinquent Assessment. In any action to
collect delinquent Assessments, late charges or interest, the prevailing party
shall be entitled to costs and reasonable attorneys' fees. If such costs and fees
are awarded to the Association, they shall become a Reimbursement Special
Assessment against the Member and shall be fully enforceable by all means
provided for in these CC&Rs including lien and foreclosure.
Lien and Foreclose. In accordance with the Davis-Stirling Act, a delinquent
Assessment or installment, together with any late charges, interest, costs,
attorneys' fees, and penalties, shall become a lien on the Lot upon the
recordation of a "Notice of Delinquent Assessment" in the Office of the County
Recorder. The Board may enforce any Assessment lien against a Lot by filing
an action for judicial foreclosure or by nonjudicial foreclosure. The
Association, through its Board, may bid on the Lot at the sale and may hold,
lease, mortgage, and convey the acquired Lot.
d. Suspend Privileges. Subject to the notice and hearing provisions set forth in the
Bylaws, privileges may be suspended until such time as delinquent
Assessments, fees and fines, including any accumulated penalties, interest, and
costs of collection have been paid in full.
e. Suspend Voting Rights. Subject to the notice and hearing provisions set forth in
the Bylaws, voting rights of a Member may be suspended if the Member is more
than sixty (60) days delinquent in paying any Assessment, fee, or fine. Once
suspended, a Member's voting privileges shall remain suspended until such
time as the delinquency, including any accumulated late charges, interest, and
costs of collection, have been paid in full.
f. Additional Remedies. The remedies provided in this Section shall be in addition
to, not in substitution for, any other rights and remedies which the Association
may have.
14.3 No Offsets. All Assessments shall be payable in the amount specified by' the
Assessment and no offsets against such amount shall be permitted for any reason, including,
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without limitation: (i) a claim that the Association is not properly exercising its duties and powers,
as provided in these~CC&Rs; (ii) a Member has not made or elects not to make use of the Common
Area; (iii) any construction or maintenance for which the Association is responsible that has not
been performed; or (iv) any construction or maintenance for which the Association is responsible
that has not been performed to a Member's satisfaction.
14.4 No Exemption by Waiver of Use. Members may not exempt themselves from
liability for Assessments nor release their Lots from liens and charges by waiver of their use and
enjoyment of the Common Area, by abandonment of their Lots, or through non-use of the Common
Area or membership privileges.
14.5 Attorneys' Fees. Any reasonable attorneys' fees and costs incurred by the
Association in the enforcement of its Assessment rights against a Member may become a
Reimbursement Special Assessment against that Member, which may be collected in any manner
provided for by these CC&Rs or by law.
14.6 Non -Waiver of Assessments. If the Board fails to approve a Budget or fix the
Assessments for the current year, the Budget and Assessments from the preceding year shall
continue until a new Budget is approved and new Assessments are fixed.
ARTICLE 15: INSURANCE
15.1 Association Insurance. The Association shall obtain and maintain policies of
insurance as described below. To help keep premiums at a reasonable level, the Association may
establish appropriate deductibles for its policies of insurance. Unless otherwise determined by the
Board, coverage must be on an occurrence basis.
a. Automobile Liability Insurance. If appropriate, the Association shall purchase
non-owned and hired automobile liability coverage and garage-keepers legal
liability coverage.
b. Boiler and Machinery Insurance. If appropriate, the Association shall purchase
insurance for the loss or damage to or as a result of equipment failures such as
boilers, pressure vessels, pressure pipes, motors, mechanical breakdowns,
electrical failures, and the like.
c. Comprehensive or Commercial General Liability ("CGL'). The Association
shall maintain one or more CGL policies which shall provide appropriate
liability limits for injury or death to one or more Persons in any one accident or
occurrence. The Association shall carry coverage in amounts that meet or
exceed those called for in Civil Code §5805 and any successor statutes. ,
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Direct Physical Loss. The Association shall maintain one or more policies for
loss or damage by fire or other perils to the Common Area covered by the
standard "Special Form" policy (or its equivalent) on all Improvements in the
Properties, excluding all Lots. The amount of such insurance shall be not less
than one hundred percent (100%) ofthe aggregate full insurable value, meaning
replacement cost, not depreciated amount or actual cash value (ACV), if
available. The coverage shall be written on a blanket basis with an agreed value
endorsement and an inflation guard endorsement, if available. The
Association's insurance policy must be primary with respect to property
damage. Because construction costs can be unpredictable and suddenly escalate
whenever large losses occur, Directors shall not be liable if actual construction
costs are greater than the 100% replacement cost provided by the insurance
policy. In addition, if available, the Association shall include the following:
"Ordinance or Law Coverage" or its equivalent, including:
(a) Coverage for Loss to the Undamaged Portion of the building or structure.
(b) Demolition Cost Coverage.
(c) Increased Cost of Construction Coverage.
ii. "Maintenance Fees Receivable" coverage, or its equivalent, to cover the
loss from unpaid or uncollected Assessments resulting from a covered
property loss.
iii. Such other endorsements which the Board may deem necessary or
reasonable.
e. Directors and Officers. The Association shall purchase Directors and Officers
errors and omission insurance, which shall provide appropriate liability limits
insuring Directors, Officers, Committee members, and management
employees. The Association shall carry coverage in amounts that meet or
exceed those called for in Civil Code §5800 and any successor statutes.
f. Earthquake and Flood Insurance. The Association may purchase appropriate
levels of earthquake or flood insurance, if such insurance is available and if
approved by the Board or the membership. In the event the Board decides not
to purchase earthquake insurance ,for the Association's Improvements, that
decision must be made as part of the Board's annual insurance disclosure to the
membership.
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g. Employment Practices Liability. If the Association has employees, it should,
depending on cost and availability, purchase employment practices liability
coverage.
h. Fidelity Bond. The Association shall maintain blanket fidelity bond coverage
for all Directors, Officers, Committee members, and employees of the
Association handling funds of the Association or third-party property in the
amount equal to the greater of 150% of annual operating expenses, plus
reserves, or at least three months Membership assessments, plus reserves.
Umbrella Policy. The Association may purchase an excess or umbrella policy
over its public liability and property damage, Directors and Officers liability,
and workers' compensation policies to provide higher liability limits as the
Board shall determine.
j. Workers Compensation. The Association shall carry workers' compensation
insurance as required by law to cover employees of the association. Even if it
-has no employees,, the Association may carry workers' compensation insurance
to protect its volunteers.
15.2 Member Obligation to Carry Insurance. At their sole 'expense, Members shall
purchase insurance, including: (i) real property and personal property coverage that insures their
Lot and contents against damage or loss; (ii) premises liability that includes protection for bodily
injury and property damage; (iii) personal liability coverage, (iv) loss of use that protects a Member
for additional living expenses should his/her Lot become uninhabitable due to a covered loss; (v)
loss assessment coverage that protects against Special Assessments due to a loss which exceeds
the Association's master policy limits or deductible, and (vi) such other coverage as the Member
deems appropriate. In addition, if a Member operates a vehicle which. is driven across or stored in
the Association's Common Area, the Member must carry appropriate automobile insurance. The
Association has no obligation to police this provision and is specifically relieved of any
responsibility or liability from doing so or failing to do so.
a. Waiver of Claims. Members waive their claims against the Association to the
extent such claims are covered under insurance which Members are required to
carry under these CC&Rs, regardless of whether Members actually carry such
insurance.
b. Assignment ofProceeds. If any loss intended to be covered by the Association's
insurance occurs and the proceeds payable are reduced because of a Member's
insurance coverage, that Member shall assign such insurance proceeds to the
Association, to the extent of the reduction. The Board shall apply those
proceeds to the same purposes as the reduced proceeds received by the
Association.
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15.3 Payment of Deductible. If a loss occurs as a result of the negligent act or omission
of any Member, Member's Tenant, or their respective family, guests, invitees, or pets, the Member
will pay the Association's liability policy deductible, if any. If a loss occurs, due to other than
negligence, as a result of a failure of a portion of the Lot, the Member shall be responsible for the
portion of the loss not paid by the Association's insurance carrier due to the Association's property
insurance policy deductible.
15.4 Liability for Increased Insurance Rates. In the event any negligent act or omission
of any Member, Member's Tenant, or their respective family, guests, invitees, or pets causes an
increase in the cost of the Association's insurance, the amount of the increase shall be assessed
against the Member and his/her Lot as a Special Reimbursement Assessment.
15.5 Choice of Contractor. With respect to any repairs for which proceeds of insurance
are paid or are payable to the Association, the Board shall designate the contractor to perform the
repairs to the Common Area. Individual Members shall be responsible for overseeing repairs done
to their respective Lots.
15.6 Insurance Company Rating. All policies of insurance shall be from an insurance
company qualified to do business in the State of California and holding an A.M. Best Insurance
rating of "A" or better, or such other comparable rating as may be given by Standard and Poor's.
ARTICLE 16: PROTECTION OF LENDERS
16.1 Information. Each Lender shall, upon written request, be entitled to inspect the
books and records of the Association during normal business and receive written notice of Board
and Membership meetings and designate a representative to attend such meetings.
16.2 No Priority Over Rights of First Mort agL~ees. Nothing in these CC&Rs shall give a
Member or any other party priority over any rights of first mortgagees of Lots, pursuant to their
mortgages, in the case of a distribution to Members of insurance proceeds or condemnation awards
for losses to or taking of Lots and/or the Common Area. Additionally, if any Lot or any portion of
a Lot is made the subject matter of any condemnation or eminent domain proceeding, no provision
herein shall entitle the Member or any other party to priority over a first mortgagee of a Lot, with
respect to any distribution to such Lot of the proceeds of any award or settlement.
16.3 Relationship with Assessment Liens. Any lien that the Association may have on
any Lot for the payment of Assessments shall be subordinate to the lien or equivalent security
interest of any Lender with a first trust deed or mortgage on the Lot, made in good faith and for
value, and no such lien shall in any way impair the obligation or the priority of such trust deed or
mortgage, unless the Lender expressly subordinates its interest, in writing, to such lien.
16.4 Foreclosure. Any holder of a first mortgage who takes title to a Lot, pursuant to the
remedies provided in the mortgage, through foreclosure of the mortgage shall take the property
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free of any claim for unpaid Assessments or charges against the mortgaged Lot which accrued
prior to the time such Person takes title to the Lot.
16.5 Priority of Mortgage Lien. No breach of any provision of these CC&Rs nor the
enforcement of any lien created herein shall affect, impair, defeat, or invalidate the lien of any
mortgage or deed of trust made in good faith and for value, but the CC&Rs shall be binding upon
any Member whose title is derived through foreclosure, trustee sale, or otherwise.
16.6 Curing of Breaches. A Lender who acquires title to any Lot, pursuant to the
remedies provided in the mortgage, through foreclosure of the mortgage, by .deed in lieu of
foreclosure, or otherwise shall not be obligated to cure any breach of these CC&Rs which is
noncurable or of a type which is not practical or feasible to cure. For the purpose of this section, if
a Lender acquires title by a deed in lieu of foreclosure, then delinquent Assessments owed on that
Lot by a previous Member shall not be a noncurable breach or a breach which is not practical or
feasible to cure and an Assessment lien on that Lot shall not be rendered invalid or unenforceable
by virtue of the Lender's receipt of title to that Lot.
16.7 Payment of Taxes and Charges. Lenders may, jointly or singly, pay taxes or other
charges which are in default and which may or have become a charge against any portion of the
Common Area and may pay overdue premiums on hazard insurance policies or secure new hazard
insurance coverage on the lapse of a policy for such Common Area, Lenders making such
payments shall be owed immediate reimbursement from the Association.
ARTICLE 17: LIMITATIONS OF LIABILITY
17.1 Standard for Liability. Officers, Directors, Committee members, employees, or
agents, shall not lie responsible to any Member, Member's Tenant, or their respective family,
guests, or invitees for any loss or damage to Person or property suffered by reason of water, fire,
smoke, explosion, electricity, dust, sand, insect or rodent infestation, or any other source, unless
there is clear and convincing evidence the damage or loss was caused by the gross negligence or
willful misconduct of the Association's Officers, Directors, Committee members, employees, or
agents. The standard for determining liability shall not be strict liability.
17.2 Limited Personal Liability. No Officer, Director, Committee member, or employee
of the Association shall be personally liable for any loss, injury, or damage to Persons or property
for any act or omission, if the act. or omission was performed in good faith, within the scope of the
Person's duties for the Association, was 'not self-dealing, and did not constitute intentional
misconduct or gross negligence.
17.3 Association Not a Security Provider. The Association may, from time to time,
provide measures of security in the Properties. However, the Association is not a provider of
security and shall have no duty to provide any security in the Properties. The obligation to provide
security lies with each Member individually. The Association shall not be held liable for any harm
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to Persons or property by reason of failure to provide adequate security or ineffectiveness of
security measures undertaken. This shall include, but not be limited to, any loss or damage suffered
by reason of theft of or damage to any article or thing which is placed or stored in or on any portion
of the Common Area.
17.4 Duty to Defend. The Association shall indemnify and defend and shall advance
reasonable attorneys' fees and costs to its Officers, Directors, Committee members, and employees
against all expenses and liabilities reasonably incurred by such Person(s) in connection with any
proceeding (including, but not limited to, alternative dispute resolution proceedings) to which they
may be a party by reason of having been an Officer, Director, Committee member, or employee
of the Association. Provided, however, the Association may recover its attorneys' fees and costs
from, and shall not be liable for any judgments or other liabilities for, those Persons who are
adjudged to have acted in bad faith or in gross negligence in the performance of their duties.
17.5 Personal lnjury or Property Damage Sustained Within a Lot. The following shall
apply if any Person sustains personal injury or property damage within a Lot or on its attached
Patio and the injury or damage results in a claim against the Association or any of its Officers,
Directors, Committee members, Members, agents, or employees. The Owner of the Lot or Patio
where the injury or damage occurred shall: (i) fully indemnify and hold harmless the Association,
Officer, Director, Committee member, Member, agent, or employee against whom such claim or
suit is brought; and, (ii) defend, at his own cost and expense, any resulting litigation against the
parties. However, there shall be no obligation to defend or indemnify any party whose gross
negligence or willful misconduct was the cause of the injury or damage.
17.6 Actions Against Volunteers. No cause of action by a Member against a Director or
Officer of the Association acting within the scope of that person's duties as a Director or Officer
shall be included in a pleading unless the court first determines that the Member seeking to file the
pleading has established evidence that substantiates the claim.
ARTICLE 18: DAMAGE/DESTRUCTION TO IMPROVEMENTS
18.1 Association's Duties. In the event of partial or total destruction of Common Area
Improvements the Association is obligated to maintain, it shall be the duty of the Association to
restore the same to its former condition (or better) as promptly as practical. The proceeds of any
insurance received shall be used for such repairs and/or replacement.
18.2 Member's Duties. In the event of partial or total destruction of Improvements on a
Member's Lot, it shall be the duty of the Member to either: (i) restore the same to its former
condition (or better) as promptly as practical, or (ii) as promptly as possible remove the damaged
Improvement as well as all debris and place the Lot in a clean and presentable condition to the
satisfaction of the Architectural Committee.
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18.3 Duties of Board During Reconstruction. If reconstruction to the Common Area is
undertaken, the Board shall: (i) enter into a written contract with a contractor who is licensed and
insured for such repair, reconstruction, and restoration; (ii) disburse insurance proceeds available
for the work, along with funds collected by reason of Assessments, in appropriate progress
payments; and (iii) take all steps necessary to ensure the commencement and completion of such
repair, reconstruction, and restoration in a lawful, workmanlike manner at the earliest possible
date.
ARTICLE 19: CONDEMNATION
19.1 Notice. Promptly upon learning of any potential condemnation or sale by eminent
domain, the Board shall notify all Members and first mortgagees who have filed a written request
for notice.
19.2 Payment for Common Area. In the event an action in eminent domain is brought to
condemn all or any portion of the Common Area, the Association shall represent the Members in
all proceedings, negotiations, or settlements. Awards for the acquisition of the Common Area shall
be paid to the Board, as trustee, for deposit into the Association's Reserves unless a majority of
the total voting power of the Association elects to distribute the award among the Members in
accordance with their Percentage Interest.
19.3 Payment for Lot. In the event that an action in eminent domain is brought to
condemn all or any portion of one or more Lots, the award made for such taking shall be payable
to the respective Owners of the Lots, subject to: (i) the rights of Mortgagees holding Mortgages
covering such Lots; and (ii) all unpaid Assessments of each Member, taken together with interest
charges. The Board of Directors shall have no responsibility for the restoration of a Member's
personal property taken as a result of condemnation.
19.4 Revision of Documents. In the event of any condemnation of a part of the
Properties, the Board shall, as soon as practical, cause to be prepared, filed, and/or recorded a
revised subdivision map, or other documents, reports, schedules, or exhibits necessary to show the
changed or altered status of the Properties.
19.5 Status of Membership. In the event a Lot is taken in condemnation, the Lot shall
cease to be part of the Properties, the Member shall cease to be a Member of the Association, and
the Percentage Interest in Common Area appurtenant to that Lot shall automatically become vested
in the remaining Members, in proportion to their respective Percentage Interests in the Common
Area.
ARTICLE 20: DECLARANT'S RIGHTS AND RESERVATIONS
If there is a. conflict between any other portion of the Governing Documents and this
Article, this Article shall control.
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20.1 Construction Rights. Declaranthastherightto(i)subdivideorre-subdividetheportionsofthe
Properties owned by Declarant; (ii) complete or modify Improvements to and on the Properties or
any portion of the Properties owned or leased solely or partially by Declarant; (iii) alter
Improvements and Declarant's construction plans and designs; (iv) modify Declarant's
development plan for the Properties; and (v) construct such additional Improvements as Declarant
considers advisable in the course of development of the Properties so long as any Lot remains
unsold. Declarant may temporarily erect barriers, close off and restrict access to portions of the
Properties as reasonably necessary to allow Declarant to exercise the rights reserved in this Section
so long as an Owner's access to the Properties is not eliminated.
20.2 Sales and Marketing Rights.
a. Marketing and Sales Facilities. Declarant's rights under this Declaration
include the right to install and maintain such structures, displays, signs, billboards, flags and sale
offices in the Properties, and the right to use any land, or Improvement owned or leased by
Declarant in the Properties for model home purposes, or for the operation of real estate sales offices
or leasing offices, all as may be reasonably necessary to conduct the business of completing
construction and disposing of the Lots by sale, resale, lease or otherwise. The rights reserved in
this Section will terminate on the date of the last close of escrow for sale of a Lot in the Properties.
b. Use of Residential Association Property. Declarant and its prospective
purchasers of Lots are entitled to the nonexclusive use of the Properties without further cost for
access, ingress, egress, use or enjoyment, to (i) show the Lots to prospective purchasers, and (ii)
dispose of Lots as provided in this Declaration. Declarant, its employees, agents and prospective
purchasers are also entitled to the nonexclusive use of private streets, drives and walkways for
ingress, egress and vehicle parking as necessary in connection with the marketing and sale of the
Properties. Neither Declarant, nor its employees, agent nor prospective purchasers shall make any
use of the Properties that will unreasonably interfere with the use and enjoyment thereof by the
Owners.
20.3 Creating Additional Easements. At any time before the close of escrow for a Lot,
Declarant reserves the right to establish on that Lot additional licenses, easements, reservations
and rights-of--way to itself, to utility companies, or to others as Declarant determines are reasonably
necessary to the proper development and disposal of the Lots.
20.4 Architectural Rights. Declarant may assign all or a portion of its exemption under
this Declaration and need not seek or obtain Architectural Committee approval of any
Improvements constructed anywhere on the Properties by Declarant or Declarant's designee.
20.5 Use Restriction Exemption. Declarant and any Person to whom Declarant may
assign all or a portion of its exemption under this Declaration is exempt from the use restrictions
established in this Declaration and any other Governing Documents.
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20.6 Assignment of Rights. Declarant may assign its rights under the Governing
Documents to any successor in interest to any portion of Declarant's interest in the Properties by
a recorded written assignment.
20.7 Amendment to Article. No amendment may be made to this Article without the
prior written approval of Declarant.
20.8 Power of Attorney. Each Owner of a Lot in the Properties, by accepting a deed to
a Lot; (i) constitutes and irrevocably appoints Declarant, for so long as Declarant owns all or any
portion of the Properties, as his attorney-in-fact, for himself and each of his Mortgagees, optionees,
grantees, licensees, trustees, receivers, lessees, tenants, judgment creditors, heirs legatees,
devisees, administrators, executors, legal representatives, successors and assigns, whether
voluntary or involuntary, and (ii) conveys a power of attorney coupled with an interest to Declarant
as his attorney-in-fact to prepare, execute, acknowledge and record any instrument for all or any
portion of the Properties, or any amendment to or restatement of the Map, as Declarant deems to
be reasonably necessary to correct errors, to conform to as-built conditions, or to bring the
Properties into compliance with any City, State or Federal law or regulations. The acceptance or
creation of any Mortgage or other encumbrance, whether or not voluntary, created in good faith,
or given for value, shall be accepted or created subject to each of the power of attorney provisions
in this Section.
20.9 Participation in Residential Association. The Association shall provide Declarant
with written notice of the transfer of any Lot and all notices and other documents to which a
Mortgagee is entitled pursuant to this Declaration, provided that Declarant shall not be required to
make a written request for such notices and other documents. Commencing on the date on which
Declarant no longer has a representative on the Board, the Association shall provide Declarant
with written notice of all meetings of the Board that any Owner is entitled to attend as if Declarant
were an Owner, and declarant shall be entitled to have a representative ("Declarant's
Representative") present at all open meetings. However, the Board has the power to withhold
information from the Declarant's Representative and to exclude the Declarant's Representative
from any open meeting or portion thereof if, in good faith judgment of the Board, access to such
information or attendance at the open meeting would adversely affect the attorney-client privilege
between the Association and its counsel or if, in good faith judgment of the Board, access to such
information or attendance at an open meeting would not be in the best interest of the Association
or the Owners. The Declarant's Representative shall not be entitled to attend executive sessions
of the Board. The Declarant's Representative will attend any open meeting it is permitted to attend,
and it shall have a right to vote on matters coming before the Board or Owners. Declarant's
Representative shall be entitled to receive copies of the minutes of all open meetings. The
Declarant's rights to receive written notice of meetings and to have a Declarant's Representative
present as a member of the Board shall continue until all Lots are sold. The Declarant's rights to
serve as a Director shall expire when the Representative no longer owns or occupies a Lot in the
Properties.
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20.10 Declarant Approval of Actions.
a. General Rights. Until Declarant no longer owns a portion of the Properties,
Declarant's prior written approval is required for any amendment to the Governing Documents
which would impair or diminish Declarant's right to complete the Properties or sell or lease the
Properties therein.
b. Limit on Actions. Until the end of all applicable statutes of limitations or repose
for the filing of a complaint or suit or other legal remedies against Declarant under the Right to
Repair Law (including any tolling periods), the following actions, before being undertaken by the
Residential Association, must first be approved in writing by Declarant:
Any amendment or action requiring the approval of First Mortgagees;
ii. The levy of a capital improvement Assessment for the construction of new
facilities not constructed on the Association Properties by Declarant;
iii. Any significant reduction of the Association's maintenance or other
services; or
iv. Any modification or termination of any provision of the Governing
Documents benefiting Declarant.
20.11 Marketing. The Properties shall be marketed under the name "Sascha
Estates." Declarant may change the marketing name of the Properties or designate a different
marketing name for the Properties at any time in Declarant's sole discretion.
20.12 Assessments. Declarant shall become liable for payment of Assessments following
the close of escrow on the first Lot sold.
ARTICLE 21: DISPUTE RESOLUTION PROCEDURES
21.1 Dispute Resolution Procedure.
(a) This Section applies to a dispute between the Association and a Member involving
their rights, duties, or liabilities under the Davis-Stirling Act, under the Nonprofit Mutual Benefit
Corporation Law (Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the
Corporations Code), or under the Governing Documents of the Association.
(b) This Section supplements, and does not replace, Section 21.2 relating to alternative
dispute resolution as a prerequisite to an enforcement action.
(c) The Association shall provide a fair, reasonable, and expeditious procedure for
resolving a dispute within the scope of this Section by adopting appropriate Association Rules.
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(d) In developing a procedure pursuant to this Section, the Association shall make
maximum, reasonable use of available local dispute resolution programs involving a neutral third
party, including low-cost mediation programs such as those listed on the Internet Web sites of the
Department of Consumer Affairs and the United States Department of Housing and Urban
Development.
(e) If the Association does not provide a fair, reasonable, and expeditious procedure
for resolving a dispute within the scope of this Section, the procedure provided in Civil Code
Section 5915 and Subparagraph (f)(8) of this Section 21.1 shall be used.
(f) A fair, reasonable, and expeditious dispute resolution procedure shall at a minimum
satisfy all of the following requirements:
(1) The procedure may be invoked by either party to the dispute. A request
invoking the procedure shall be in writing.
(2) The procedure shall provide for prompt deadlines. The procedure shall state
the maximum time for the Association to act on a request invoking the procedure.
(3) If the procedure is invoked by a Member, the Association shall participate
in the procedure.
(4) If the procedure is invoked by the Association, the Member may elect not
to participate in the procedure. If the Member participates but the dispute is resolved other than by
agreement of the Member, the Member shall have a right of appeal to the Association's Board of
Directors. -
(5) A resolution of a dispute pursuant to the procedure, that is not in conflict
with the law or~the Governing Documents, binds the Association and is judicially enforceable. An
agreement reached pursuant to the procedure, that is not in conflict with the law or the Governing
Documents, binds the parties and is judicially enforceable.
(6) The procedure shall provide a means by which the Member and the
Association may explain their positions.
(7) A Member of the Association shall not be charged a fee to participate in the
process.
(8) If the Association does not otherwise provide a fair, reasonable, and
expeditious dispute resolution procedure, the following provisions.shall apply and will be deemed
fair, reasonable, and expeditious, within the meaning of Civil Code Section 5910:
59
`s
(i) Either party to a dispute within the scope of this Section may invoke
the following procedure:
(A) The party may request the other party to meet and confer in an effort
to resolve the dispute. The request shall be in writing.
(B) The Member may refuse a request to meet and confer. The
Association may not refuse a request to meet and confer.
(C) The Board of Directors shall designate a member of the Board to
meet and confer.
(D) The parties shall meet promptly at a mutually convenient time and
place, explain their positions to each other, and confer in good faith
in an effort to resolve the dispute.
(E) A resolution of the dispute agreed to by the parties shall be
memorialized in writing and signed by the parties, including the
Board designee on behalf of the Association.
(ii) An agreement reached under this Section binds the parties and is
judicially enforceable if both of the following conditions are
satisfied:
(A) The Agreement is not in conflict with law or the Governing
Documents of the Association.
(B) The Agreement is either consistent with the authority granted by the
Board of Directors to its designee or the Agreement is ratified by the
Board of Directors.
(iii) A Member of the Association may not be charged a fee to participate
in the process.
21.2 Alternative Dispute Resolution.
(a) Definitions as used in this Section:
(1) "Alternative dispute resolution" means mediation, arbitration, conciliation,
or other nonjudicial procedure that involves a neutral party in the decision making process. The
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form of alternative dispute resolution chosen may be binding or nonbinding, with the voluntary
consent of the parties.
(2) "Enforcement action" means a civil action or proceeding, other than across-
complaint, for any of the following purposes:
(i) Enforcement of the Davis-Stirling Act.
(ii) Enforcement of the Nonprofit Mutual Benefit Corporation Law
(Part 3 (commencing with Section 7110) of Division 2 of Title l of
the Corporations Code).
(iii) Enforcement of the Governing Documents.
(b) The Association or an Owner may not file an enforcement action in the Superior
Court unless the parties have endeavored to submit their dispute to alternative dispute resolution
pursuant to this Section.
(c) This Section applies only to an enforcement action that is solely for declaratory,
injunctive, or writ relief, or for that relief in conjunction with a claim for monetary damages not in
excess of the jurisdictional limits stated in Sections 116.220 and 116.221 of the California Code
of Civil Procedure.
(d) This Section does not apply to a small claims action.
(e) Except as otherwise provided by law, this Section does not apply to an Assessment
dispute.
(f) Any party to a dispute may initiate the process required by Civil Code Section 5930
by serving on all other parties to the dispute a Request for Resolution. The Request for Resolution
shall include all of the following:
(1) A brief description of the dispute between the parties.
(2) A request for alternative dispute resolution.
(3) A notice that the party receiving the Request for Resolution is required to
respond within thirty (30) days of receipt or the request will be deemed rejected.
(4) If the party on whom the request is served is the Owner of a Separate
Interest, a copy of Civil Code Sections 5925 - 5965.
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(5) A description of the Association's internal dispute resolution process.
(g) Service of the Request for Resolution shall be by personal delivery, first-class mail,
express mail, facsimile transmission, or other means reasonably calculated to provide the party on
whom the request is served actual notice of the request.
(h) A party on whom a Request for Resolution is served has thirty (30) days following
service to accept or reject the request. If a party does not. accept the request within that period, the
request is deemed rejected by the party. In an enforcement action in which attorney's fees and
costs may be awarded, the court, in determining the amount. of the award, may consider whether a
party's refusal to participate in alternative dispute resolution before commencement of the action
was reasonable.
(i) If the party on whom a Request for Resolution is served accepts the request, the
parties shall complete the alternative dispute resolution within ninety (90) days after the party
initiating the request receives the acceptance, unless this period is extended by written stipulation
sigried by both parties.
(j) Chapter 2.(commencing with Section 1115) of Division 9 of the Evidence Code
applies to any form of alternative dispute resolution initiated by a Request for Resolution under
this article, other than arbitration.
(k) The costs of the alternative dispute resolution shall be borne by the parties.
(1) At the time of commencement of an enforcement action, the party commencing the
action shall file with the initial pleading a certificate stating that one or more of the following
conditions is satisfied:
(1) Alternative dispute resolution has been completed in compliance with this
Section.
(2) 'One of the other parties to the dispute did not accept the terms offered for
alternative dispute resolution.
(3) Preliminary or temporary injunctive relief is necessary.
(m) The Association shall annually provide the Members a summary of the provisions
of this Section that specifically references Civil Code Sections 5925 - 5965. The summary shall
include the following language:
Failure of a member of the association to comply with the alternative dispute
resolution requirements of Section 5930 of the Civil Code may result in the loss of
62
your right to sue the association or another member of the association regarding
enforcement of the governing documents or the applicable law.
The Annual Policy Statement pc•epared pursuant to California Civil Code Section 5310
shall include a description of the internal dispute resolution process provided pursuant to this
Section 21.2.
ARTICLE 22: MISCELLANEOUS
22.1 Amendment. TheseCC&Rsmaybeamendedbytheaf~irmativevoteofMemberscomprising
more than fifty percent (50%) of the Voting Power of the Association or as provided for by law,
provided that the percentage of the Voting Power necessary to amend a specific provision shall
not be less than the percentage of affirmative votes prescribed for action to be taken under that
provision. Any amendment enacted in compliance with this provision shall become effective when
recorded with the Office of the County Recorder.
22.2 Amendments to Conform With Mortgagee Requirements. It is the intent of
Declarant that this Declaration and the Articles and Bylaws of the Association, and the Properties
in general, shall now and in the future meet all requirements .necessary to purchase, guarantee,
insure, or subsidize any Mortgage of a Lot in the Properties by the Federal Home Loan Mortgage
Corporation, the Federal National Mortgage Association, the Federal Housing Administration and
the U.S. Department of Veterans Affairs. The Association and each Owner shall take any action
or shall adopt any resolutions required by Declarant or any Mortgagee to conform this Declaration
or the Properties to the requirements of any of said entities or agencies.
22.3 Lender Approval. If a First Mortgagee is entitled by the terms of these CC&Rs to
consent to or approve a proposed amendment or restatement to the CC&Rs, fails to return a ballot,
such first Mortgagee shall be deemed to have consented to and approved the proposed amendment
or restatement, provided the ballot was delivered by certified or registered mail with -•eturn receipt
requested and the delivery signed for by a representative of the First Mortgagee.
22.4 Amendment to Conform to Statute. If at any time a provision in these CC&Rs
contradicts current law, according to a written opinion of the Association's legal counsel, the
Board of Directors will have the authority, on the unanimous approval of the Directors and without
approval of the Members, to amend that provision, but only to the extent necessary to render the
provision compliant with applicable law.
22.5 Term of CC&Rs. These CC&Rs shall continue in full force and effect for a term of
sixty (60) years from the date of their recordation, after which time they shall be automatically
extended for successive periods of twenty (20) years. These CC&Rs may be terminated if, within
six (6) months prior to the Renewal Date of any twenty-year extension period, (i) at least seventy-
five percent (75%) of the Members and seventy-five percent (75%) of the First Mortgagees
approve by secret ballot circulated by the Association via its Board of Directors to terminate these
63
CC&Rs, and (ii) all appropriate governmental agencies have agreed in writing to assume the
Association's Common Area maintenance obligations, and (iii.) certification of the Membership's
and First Mortgagee's approval to terminate and the agency's agreement to assume maintenance
duties are recorded with the Office of County Recorder in which the Properties are situated, and
(iv) the Association's contractual and other legal obligations are wound up, and (v) all required
corporate filings, tax returns, and notices are filed with appropriate agencies to effectuate
dissolution of the Association/corporation, and (vi) insurance tail coverage is purchased to cover
any potential liability the Association may have until all applicable statutes of limitations have run
their course.
22.6 Attorneys' Fees. Any reasonable attorneys' fees and costs incurred by the
Association in the enforcement of the Governing Documents against a Member or to determine
the rights or duties of the Member under the Governing Documents may be levied against that
Member by the Board as a Reimbursement Special Assessment, which may be collected in any
manner provided for by these CC&Rs or by law.
22.7 Notices. Any communication or notice of any kind permitted or required herein
may be delivered as provided in these CC&Rs and shall be in writing and may be served, as an
alternative to personal service, by mailing same as follows:
To a Member: To the street address of the Lot or at such other address as Member
may designate in writing to the Association.
To the Association: To the address of the Manager or the Board President.
All notices or demands to be served by mail shall be by first-class mail with postage
prepaid. Notice shall be deemed to have been given at the time when delivered personally or
deposited in the mail.
22.8 Headings. The headings contained in these CC&Rs are for convenience of
reference and are not a part of and are not intended to govern, limit, or aid in the construction of
any term or provision of these CC&Rs.
22.9 Liberal Construction. The provisions ofthe Governing Documents shall be liberally
construed to effectuate their purpose of creating a uniform plan for the use, operation and
maintenance of the Properties.
22.10 Number and Gender. Whenever the context so requires, the singular number
includes the plural, the plural includes the singular, the masculine gender includes the feminine
and/or neuter, and the neuter gender includes the masculine and/or feminine.
22.11 Severability. The provisions of these CC&Rs and any other Governing Document
shall be deemed independent and severable and the invalidity, partial invalidity, or
64
unenforceability of any one provision shall not affect the validity or enforceability of any other
provision.
22.12 No Public Rights. Nothing contained in these CC&Rs shall be deemed to be a gift
or dedication of all or any portion of the Properties to the general public or for any public use or
purpose whatsoever.
22.13 Successor Association. In the event the Association, as a corporate entity, is
dissolved, a nonprofit, unincorporated association shall, without further action, automatically
succeed to all the rights and duties of the corporation. The affairs of the unincorporated association
shall continue to be governed by these CC&Rs, the Bylaws, Architectural Standards, and the Rules
and Regulations, as well as any applicable law.
22.14 Conflicting Provisions. In the event of any conflict between these CC&Rs and the
Articles or the Bylaws, these CC&Rs shall control. In the event of any conflict between the Articles
and the Bylaws, the Articles shall control.
CEI~TIFICATIOleT
WE CERTIFY this ~$ ~ day of ~o,r-c~ , 2018 that this Declaration of Covenants,
Conditions and Restrictions has been duly approved and adopted by the Declarant.
SAI HOMES, INC.
.~~,~~--
President
-`~
Secretary ~d-2f,~-~~ZL/~/1
() W.SF.RSW V,~<CA~R/511indu Euwa • CC4R~ 130.1 Rdw
65
A notary public or other officer completing this certificate verifies only the identity of the individual who
signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that
document.
State of California )
ss
County of Santa Clara )
On ~ o~ ~ ~~ ~ ~ 2018, befor me,~~ r'11, t1,Q l~ a
Notary Public, personally appeared a'Yl q }~ R~r °~v ~Y~ who proved to
me on the basis of satisfactory evidence to be the son(s) whose name( is are subs bed to the
within instrument and acknowledge me that~e he/they executed the same i hi er/their
authorized capacity(ies), and that b his er/their signature(s) on the instrument the person(s) or
the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PER7URY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal~~
RON CHEN I ~~~ N~~GI ~ 1 II~ ~ 1
IIbTARy PIiBUC -CALIFORNIA ~ ,
o COMMISSION • 2196844
sANracLARACOUNTV Notary Public
Yy Camm Enp: June s, Zoe, State of California
--seal-
66
A notary public or other officer completing this certificate verifies only the identity of the individual who
signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that
document.
State of California )
ss
County of Santa Clara )
On ~yc,~,, Z~ • 2v ~ ~_, 2018, before me, }~~' Ud,G p o ~~ fl~ ~ a
Notary Public, personally appeared PGK!'a a - v5 who proved to
me on the basis of satisfactory evidence to be the p on(s) whose names i e subs bed to the
within instrument and acknowledged to me tha he/ he/they executed the same in his er/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or
the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
RINKOO R. NAT
l10TARY PueUO ~ CALIFORINA
COMMISSION # 218020
m COUNTY
• My Ca~mm r D~ebF ruery 1S.>'021
C;~ ~~
Notary Pub is
State of California
--seal-
67