Covenants, Conditions and Restrictions (CC & Rs)

TABLE OF CONTENTS

 

ARTICLE   PARAGRAPH                                                      PAGE


          PREAMBLE                                         ............... 1


ONE       DEFINITIONS                                      ............... 2

 

          1.1  Act                                         ............... 2

          1.2  Agencies                                    ............... 2

          1.3  Allocated Interests                         ............... 3

          1.5  Assessments                                 ............... 3

          1.6  Assessment Lien                             ............... 3

          1.7  Association                                  .............. 3

          1.8  Board of Directors or Board                 ............... 3

          1.9  Bylaws                                      ............... 3

          1.10 Common Areas                                ............... 3

          1.11 Common Expense Assessments                  ............... 4

          1.12 Common Expense Liability                    ............... 4

          1.13 Common Expenses                             ............... 4

          1.14 Costs of Enforcement                        ............... 4

          1.15 County                                      ............... 4

          1.16 Declarant                                   ............... 4

          1.17 Declaration                                 ............... 4

          1.18 Design Review Committee                     ............... 4

          1.19 Design Review Guidelines                    ............... 4

          1.20 Development Rights and Special Declarant          

               Rights                                      ............... 5

          1.21 Dwelling Unit or Unit                       ............... 5

          1.22 Eligible Mortgagee                          ............... 5

          1.23 First Mortgagee                             ............... 5

          1.24 First Security Interest                     ............... 5

          1.25 Guest                                       ............... 5

          1.26 Improvements                                ............... 5

          1.27 Lot                                         ............... 6

          1.28 Lots That May Be Created                    ............... 6

          1.29 Managing Agent                              ............... 6

          1.30 Member                                      ............... 6

          1.31 Notice and Hearing                          ............... 6

          1.32 Owner                                       ............... 6

          1.33 Party Wall                                  ............... 7

          1.34 Period of Declarant Control                 ............... 7

          1.35 Person                                      ............... 7

          1.36 The Planned Community                       ............... 7

          1.37 Plat                                        ............... 7

          1.38 Project Documents                           ............... 7

          1.39 Rules                                       ............... 7

          1.40 Security Interest                           ............... 7

          1.41 Special Assessments                         ............... 8

          1.42 Supplemental Declaration                    ............... 8

          1.43 Turnover Date                               ............... 8

          1.44 Unit                                        ............... 8

          1.45 VA and/or FHA Approval                      ............... 8


TWO       SCOPE OF THE DECLARATION                         ............... 9

 

          2.1 Property Subject to this Declaration         ............... 9

          2.2 Conveyances Subject to this Declaration      ............... 9

          2.3 Owner's Rights Subject to this Declaration   ............... 9

          2.4 Number of Lots                               ............... 9

          2.5 Identification of Lots                       ............... 9

          2.6 Lot Boundaries                               ............... 9

 

THREE     THE COMMON AREAS                                ............... 10

 

          3.1 Common Area Dedication                      ............... 10

          3.2 Title to the Common Areas                   ............... 10

          3.3 Duty to Accept Common Areas Transferred by

              Declarant                                   ............... 10

          3.4 Duty to Manage and Care for the Common

              Areas                                       ............... 10

          3.5 Owner's Rights to the Common Areas          ............... 10

          3.6 Delegation of Use                           ............... 11

 

FOUR      THE ASSOCIATION                                 ............... 12

 

          4.1  Name                                       ............... 12

          4.2  Purposes and Powers                        ............... 12

          4.3  Board of Directors                         ............... 12

          4.4  Articles and Bylaws                        ............... 12

          4.5  Membership                                 ............... 12

          4.6  Voting Rights                              ............... 12

          4.7  Declarant Control of the Association       ............... 13

          4.8  Election by Owners                         ............... 13

          4.9  Delivery of Documents by Declarant         ............... 13

          4.10 Budget                                     ............... 14

          4.11 Association Agreements                     ............... 15

          4.12 Indemnification                            ............... 15

          4.13 Certain Rights and Obligations of the

               Association                                ............... 15

          4.14 Certain Rights and Obligations of the

               Declarant                                  ............... 16

 

FIVE      ASSESSMENTS                                     ............... 17

 

          5.1  Obligation                                 ............... 17

          5.2  Purpose of the Assessments                 ............... 17

          5.3  Date of Commencement of Common Expense

               Assessments                                ............... 17

          5.4  Levy of Assessments                        ............... 18

          5.5  Due Date 20

          5.6  Remedies for Nonpayment of Assessments     ............... 20

          5.7  The Assessment Lien                        ............... 21

          5.8  Surplus Funds                              ............... 22

          5.9  Working Capital Fund                       ............... 22

          5.10 Certificate of Status of Assessments       ............... 23

          5.11 No Offsets                                 ............... 23

 

SIX       ARCHITECTURAL APPROVAL/DESIGN REVIEW            ............... 24

 

          6.1  Approval of Improvements Required          ............... 24

          6.2  Membership of the Committee                ............... 24

          6.3  Address of Committee                       ............... 24

          6.4  Submission of Plans/Design Review Fee      ............... 24

          6.5  Delegation/Waiver                          ............... 25

          6.6  Criteria for Approval                      ............... 25

          6.7  Decision of the Committee                  ............... 26

          6.8  Appeal to the Board of Directors           ............... 26

          6.9  Failure of Committee to Act on Plans       ............... 26

          6.10 Prosecution of Work After Approval         ............... 26

          6.11 Notice of Completion                       ............... 27

          6.12 Inspection of Work                         ............... 27

          6.13 Notice of Noncompliance                    ............... 27

          6.14 Failure of Committee to Act After Completion.............. 27

          6.15 Appeal to Board of Directors of Finding of

               Noncompliance                              ............... 27

          6.16 Correction of Noncompliance                ............... 28

          6.17 Meetings of the Committee                  ............... 28

          6.18 No Implied Waiver or Estoppel              ............... 28

          6.19 Estoppel Certificates                      ............... 28

          6.20 Record of Actions                          ............... 28

          6.21 Architectural Standards/Design Guidelines  ............... 28

          6.22 No Liability for Committee Action          ............... 29

 

SEVEN     LAND USE AND OTHER RESTRICTIONS                 ............... 30

 

          7.1  Limitations and Restrictions               ............... 30

          7.2  Land Use, Building Type and Building

               Envelopes                                  ............... 30

          7.3  Building Locations and Height Restrictions ............... 30

          7.4  Temporary Structures                       ............... 30

          7.5  Restrictions on Garbage and Trash          ............... 31

          7.6  Nuisances                                  ............... 31

          7.7  No Annoying Lights, Sounds or Odors        ............... 31

          7.8  No Hazardous Activities                    ............... 31

          7.9  No Unsightliness                           ............... 32

          7.10 Utilities                                  ............... 32

          7.11 Restrictions on Signs and Advertising

               Devices                                    ............... 32

          7.12 Compliance with Insurance Requirements     ............... 32

          7.13 Compliance with Laws                       ............... 32

          7.14 Restoration in the Event of Damage or

               Destruction                                ............... 32

          7.15 Household Pets                             ............... 33

          7.16 Vehicular Parking, Storage, and Repairs    ............... 34

          7.17 Owner Caused Damages                       ............... 34

          7.18 Antennas                                   ............... 35

          7.19 Lease of a Dwelling Unit                   ............... 35

          7.20 Rules                                      ............... 35

          7.21 Use of the Garages                         ............... 35

          7.22 Waiver of Summary Abatement                ............... 35

          7.23 Party Walls                                ............... 35

          7.24 Exemptions for the Declarant               ............... 36

 

EIGHT     EASEMENTS                                       ............... 37

 

          8.1  Utility Easements                          ............... 37

          8.2  Easements for the Board of Directors       ............... 37

          8.3  Emergency Easements                        ............... 37

          8.4  Owner's Easement for Access                ............... 37

          8.5  Easements for Encroachments                ............... 37

          8.6  Water and Sewer Line Easements             ............... 37

          8.7  Local Area Network                         ............... 38

          8.8  Easements Deemed Appurtenant               ............... 38

 

NINE      DEVELOPMENT RIGHTS AND SPECIAL DECLARANT RIGHTS ............... 39

 

          9.1  Reservation                                ............... 39

          9.2  Rights Transferable                        ............... 39

          9.3  Limitations                                ............... 39

          9.4  Interference with the Declarant Rights     ............... 40

          9.5  Use by Declarant                           ............... 40

          9.6  Models, Sales Offices and Management Offices.............. 40

          9.7  Declarant's Easements                      ............... 40

          9.8  Signs and Marketing                        ............... 40

          9.9  Declarant's Personal Property              ............... 40

          9.10 Rights of First Mortgagees                 ............... 41

 

TEN       INSURANCE/CONDEMNATION                          ............... 42

 

          10.1 Authority to Purchase/General Requirements ............... 42

          10.2 Hazard Insurance                           ............... 43

          10.3 Liability Insurance                        ............... 45

          10.4 Fidelity Insurance                         ............... 46

          10.5 Additional Insurance                       ............... 47

          10.6 Payment of Insurance Premiums              ............... 47

          10.7 Separate Insurance                         ............... 48

          10.8 Condemnation                               ............... 48


ELEVEN    RESTORATION UPON DAMAGE OR DESTRUCTION          ............... 49

 

          11.1 Duty to Restore                            ............... 49

          11.2 Plans/Cost                                 ............... 49

          11.3 Reconstruction of Less Than the Entire

               Planned Community                          ............... 49

 

TWELVE    MAINTENANCE                                     ............... 50

 

          12.1 Maintenance of the Common Areas            ............... 50

          12.2 Exterior Maintenance of Dwelling Units     ............... 50

          12.3 Association Responsibility                 ............... 51

          12.4 Maintenance of Drainage Pattern            ............... 51

          12.5 Special Maintenance Requirements           ............... 51

 

THIRTEEN  EXPANSION                                       ............... 53

 

          13.1 Reservation of Right to Expand             ............... 53

          13.2 Supplemental Declarations                  ............... 53

          13.3 Expansion of Definitions                   ............... 53

          13.4 Declaration Operative on New Properties    ............... 53

          13.5 Interests on Enlargements                  ............... 53

          13.6 Taxes, Assessments and Other Liens         ............... 53

          13.7 Project Treated as a Whole                 ............... 54

          13.8 Termination of the Right of Expansion      ............... 54

 

FOURTEEN  FIRST MORTGAGEE PROVISIONS                      ............... 55

 

          14.1 Notices of Action                          ............... 55

          14.2 Amendment to Documents/Special Approvals   ............... 55

          14.3 Special FHLMC Provisions                   ............... 57

          14.4 Implied Approval                           ............... 57

          14.5 Books and Records                          ............... 57

 

FIFTEEN   DURATION, AMENDMENT AND TERMINATION OF THE

          DECLARATION                                     ............... 58

 

          15.1 Duration                                   ............... 58

          15.2 Amendments by Owners                       ............... 58

          15.3 FHA/VA Approval                            ............... 59

          15.4 Amendments by Declarant                    ............... 59

          15.5 Consent of Declarant Required              ............... 59

          15.6 Expenses                                   ............... 59

          15.7 Termination                                ............... 59


SIXTEEN   GENERAL PROVISIONS                              ............... 60

 

          16.1 Right of Action                            ............... 60

          16.2 Successors and Assigns                     ............... 60

          16.3 Severability                               ............... 60

          16.4 No Waiver                                  ............... 60

          16.5 Registration by Owner of Mailing Address   ............... 60

          16.6 Conflict                                   ............... 60

          16.7 Merger                                     ............... 60

          16.8 Arbitration/Attorney/s Fees                ............... 61

          16.9 Captions                                   ............... 61

          16.10 Numbers and Genders                       ............... 61

          16.11 Release                                   ............... 61

 

A LEGAL DESCRIPTION OF THE REAL PROPERTY SUBMITTED TO THE DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS OF THE GREYROCK COMMONS COMMUNITY (FIRST PHASE)

 

B LEGAL DESCRIPTION OF THE COMMON AREAS SUBMITTED TO THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF THE GREYROCK COMMONS COMMUNITY (FIRST PHASE)

 

C LEGAL DESCRIPTION OF THE REAL PROPERTY WHICH MAY BE SUBMITTED TO THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF THE GREYROCK COMMONS COMMUNITY IN LATER PHASES

 

D TABLE OF INTERESTS (FIRST PHASE)

 

E SCHEDULE OF ASSESSMENT LIABILITY (FIRST PHASE)

 



-UNSIGNED AND UNRECORDED COPY-

THE

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS

OF

THE GREYROCK COMMONS COMMUNITY

=================================================================

PREAMBLE

THIS DECLARATION is made on the date hereinafter set forth, by the FORT COLLINS COHOUSING COMMUNITY LIMITED LIABILITY COMPANY, a Colorado limited liability company, hereinafter referred to as "Declarant".

WHEREAS, Declarant is the owner of certain real property situate in Larimer County, State of Colorado, as more particularly described on Exhibits A, B and C attached hereto and incorporated herein by reference; and

WHEREAS, the Declarant intends to construct a residential community on said real property together with other improvements thereon; and

WHEREAS, Declarant will convey said real property, subject to the protective covenants, restrictions, reservations, and obligations as hereinafter set forth.

NOW THEREFORE, Declarant hereby submits the real property described in Exhibits A and B, together with all easements, rights, and appurtenances thereto and improvements thereon to the provisions of the Colorado Common Interest Ownership Act, C.R.S. §§ 38-33.3-101 et seq., as it may be amended from time to time. In the event the said Act is repealed, the Act as it exists on the date this Declaration is recorded shall remain applicable.

Declarant hereby declares that all of the said real property described in Exhibits A and B shall be held or sold, and conveyed subject to the following covenants, conditions and obligations, all of which are declared and agreed to be for the protection of the value of the said real property, and for the benefit of any persons having any right, title or interest in the said real property and which shall be deemed to run with the land and shall be a burden and a benefit to any persons acquiring such interest, their grantees, heirs, legal representatives, successors and assigns.

Copyright © 1996

By William A. Love

All Rights Reserved



ARTICLE ONE: DEFINITIONS

As used in this Declaration, unless the context otherwise requires, the terms hereinafter set forth shall have the following meanings:

1.1 ACT means the Colorado Common Interest Ownership Act, C.R.S. §§ 38-33.3-101, et seq., as it may be amended from time to time.

1.2 AGENCIES means and collectively refers to the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC), the Department of Housing and Urban Development (HUD/FHA), the Veterans Administration (VA) or any other governmental or quasi-governmental agency or any other public, quasi-public or private entity which performs (or may in the future perform) functions similar to those currently performed by any of such entities.

1.3 ALLOCATED INTERESTS means the votes in the Association and the Assessment Liability which are allocated to each of the Lots in The Planned Community. The formulas used to establish the Allocated Interests are as follows:

(a) Votes. Each Lot in The Planned Community has one vote.

(b) Common Expense Assessment Liability. The Common Expense Assessment Liability has been created using a combination of (i) Per Lot Charges and (ii) Equivalent Persons" Charges (see attached Exhibit D), and are determined as follows:

Per Lot Charges are assessed against Lots as a fraction, the numerator of which is one and the denominator of which is the total number of Lots then within the Planned Community.

"Equivalent Person" Charges shall be assessed against Lots as a fraction, the numerator of which is the number of "Equivalent Persons" residing on the Lot, and the denominator of which is the total number of "Equivalent Persons" then within the Planned Community. "Equivalent Persons" shall be determined annually by the Board of Directors and is defined as any person over one year old and less than ninety-five years old as of December 31 of each year.

Lot occupancy shall be set annually based upon the past year occupancy.

(c) Exterior Maintenance and Insurance Assessment Liability. The Exterior Maintenance Assessment and Insurance Assessment is levied against all Lots on the basis of the proportion which the approximate total square footage area of each Dwelling Unit (not to include the Garage or Carport) bears to the total approximate square footage area of all Dwelling Units then within The Planned Community and is as set forth in Exhibit D attached hereto.

1.4 ARTICLES means the Articles of Incorporation of the Association.

1.5 ASSESSMENT means the (a) Common Expense Assessment, (b) Exterior Maintenance Assessment, (c) Insurance Assessment, (d)

Special Assessment, (e) Individual Assessment, and (f) Fines levied pursuant to this Declaration.

1.6 ASSESSMENT LIEN means the statutory lien on a Lot for any Assessment levied against that Lot together with all Costs of Enforcement as herein defined. All Costs of Enforcement are enforceable as Assessments.

If an Assessment is payable in installments, the full amount of the Assessment is a lien from the time the first installment becomes due.

The recording of this Declaration constitutes record notice and perfection of the lien. No further recordation or claim of lien for the assessment is required.

1.7 ASSOCIATION means THE GREYROCK COMMONS HOMEOWNERS ASSOCIATION, a Colorado Corporation, not for profit, organized pursuant to §38-33.3-301 of the Act, its successors and assigns, the Articles of Incorporation and Bylaws of which, as herein defined, along with this Declaration, shall govern the administration of The Planned Community, the Members of which shall be all of the Owners of the Lots within The Planned Community.

1.8 BOARD OF DIRECTORS or BOARD means the Board of Directors of the Association duly elected pursuant to the Bylaws of the Association or appointed by the Declarant as therein provided. The Board of Directors is the governing body of the Association and shall act on behalf of the Association.

The term Board of Directors as used herein is synonymous with the term Executive Board as the latter term is used in the Act.

1.9 BYLAWS means the Bylaws which are adopted by the Board of Directors for the regulation and management of the Association including any amendments made.

1.10 COMMON AREAS means any real property (including all improvements thereon) owned by the Association other than a Lot or public street, all of which is held for the common use and enjoyment of the Owners, the descriptions of which are more fully described in Exhibit B attached hereto.

In the event that additional real property is made subject to this Declaration in the manner provided in ARTICLE TWELVE hereof, "Common Areas" shall, from the date such additional real property is made subject to this Declaration, include any parts thereof designated as "Common Areas" and any parts thereof which the Association has an obligation to repair, maintain and/or reconstruct (including all improvements thereon) in such Supplemental Declarations.

The term Common Areas as used herein is synonymous with the term Common Elements as the latter term is used in the Act.

1.11 COMMON EXPENSE ASSESSMENTS means all those assessments defined in Paragraph 5.2 hereof.

1.12 COMMON EXPENSE LIABILITY means the liability for Common Expenses allocated to each Lot which is determined in accordance with that Lot's Allocated Interests as set forth in Paragraph 1.3 hereof.

1.13 COMMON EXPENSES means expenditures made by or liabilities incurred by or on behalf of the Association, together with allocations to reserves.

1.14 COSTS OF ENFORCEMENT means all fees, late charges, interest, expenses, including receiver's fees, and reasonable attorneys' fees and costs incurred by the Association (a) in connection with the collection of the Assessments and Fines, or (b) in connection with the enforcement of the terms, conditions and obligations of the Project Documents.

1.15 COUNTY means Larimer County, Colorado.

1.16 DECLARANT means the FORT COLLINS COHOUSING COMMUNITY LIMITED LIABILITY COMPANY, a Colorado limited liability company, or its successors as defined in § 38-33.3-103 (12) of the Act.

1.17 DECLARATION means this DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF THE GREYROCK COMMONS COMMUNITY, as may be amended from time to time, together with any and all Supplemental Declarations that may be recorded from time to time pursuant to the provisions of ARTICLE TWELVE hereof, also including but not limited to plats and maps.

1.18 DESIGN REVIEW COMMITTEE means the Committee formed pursuant to ARTICLE SIX hereof to review and approve or disapprove plans for Improvements as defined herein as more fully provided for by this Declaration.

1.19 DESIGN REVIEW GUIDELINES means the DESIGN REVIEW GUIDELINES FOR THE GREYROCK COMMONS COMMUNITY, as amended and supplemented. These guidelines may be adopted by the Design Review Committee to implement and interpret the Design Review/Architectural Approval provisions of ARTICLE SIX of this Declaration. These guidelines contain, among other things, guidelines that will clarify the design, materials, heights, size of structures and the maximum and minimum setbacks that will be considered in Design Approval.

1.20 DEVELOPMENT RIGHTS AND SPECIAL DECLARANT RIGHTS means the rights as defined by § 38-33.3-103(14) of the Act reserved by the Declarant under ARTICLE NINE hereof.

1.21 DWELLING UNIT OR UNIT means the residence constructed on each Lot within The Planned Community and any replacement thereof, including the patio, fence, basement and garage, if applicable. Dwelling Unit shall include the Lot upon which such Dwelling Unit is constructed.

1.22 ELIGIBLE MORTGAGEE means a holder, insurer or guarantor of a First Security Interest who has delivered a written request to the Association containing its name, address, the legal description and the address of the Lot encumbered by its First Security Interest, requesting that the Association notify them on any proposed action requiring the consent of the specified percentage of Eligible Mortgagees.

1.23 FIRST MORTGAGEE means any Person which owns, holds, insures or is a guarantor of a Security Interest as herein defined, which is a First Security Interest encumbering a Lot within The Planned Community. A First Mortgagee shall also include the holder of executory land sales contracts wherein the Administrator of Veterans Affairs (Veterans Administration) is the Seller, whether such contract is recorded or not.

1.24 FIRST SECURITY INTEREST means a Security Interest (as hereinafter defined) that has priority of record over all other recorded liens except those liens made superior by statute (such as general ad valorem tax liens and special assessments).

1.25 GUEST means (a) any person who resides with an Owner within The Planned Community; (b) a guest or invitee of an Owner; (c) an occupant or tenant of a Dwelling Unit within The Planned Community, and any members of his or her household, invitee or cohabitant of any such person; or (d) a contract purchaser.

1.26 IMPROVEMENTS means:

(a) all exterior improvements, structures and any appurtenances thereto or components thereof of every type or kind;

(b) the demolition or destruction, by voluntary action, of any building, structure or other Improvements;

(c) the grading, excavation, filling or similar disturbance to the surface of the land including, without limitation, change of grade, change of ground level, change of drainage pattern;


(d) all landscaping features, including, but not limited to, buildings, outbuildings, swimming pools, tennis courts, patios, patio covers, awnings, solar collectors, painting or other finish materials on any visible structure, additions, walkways, sprinkler systems, garages, driveways, fences, retaining walls, stairs, decks, landscaping, trees, shrubs, exterior light fixtures, poles, signs, cooling, heating and water softening equipment; and

(e) any change, alteration, modification, expansion, or addition to any previously approved Improvement, including any change of exterior appearance, finish material, color or texture.

1.27 LOT means each platted lot shown upon the Plat of The Planned Community which is subject to this Declaration, with the exception of the Tracts and any public streets together with all appurtenances and improvements now or hereafter located thereon. Lot shall include any Dwelling Unit constructed thereon as the term Dwelling Unit is herein defined.

In the event additional real property is made subject to this Declaration in the manner provided in ARTICLE TWELVE hereof, "Lot" shall, from the date such additional real property is made subject to this Declaration, include any parts thereof designated as Lots in such Supplemental Declaration.

The term Lot as used herein is synonymous with the term Unit as the latter term is used in the Act.

1.28 LOTS THAT MAY BE CREATED means thirty Lots, which shall be the maximum number of Lots that may be subject to this Declaration, including those Lots which may be included if all of the property provided for in Exhibit C hereof is annexed to The Planned Community and made subject to this Declaration.

1.29 MANAGING AGENT means any one or more persons employed by the Association who is engaged to perform any of the duties, powers or functions of the Association.

1.30 MEMBER means each Owner, as defined in Paragraph 1.32 hereof.

1.31 NOTICE AND HEARING means a written notice and an opportunity for a hearing before the Board of Directors in the manner provided in the Bylaws.

1.32 OWNER means the record Owner of the fee simple title to any Lot which is a part of The Planned Community, whether one or more persons or entities, including the Declarant, so long as any Lot remains unsold, excluding, however, those having an interest merely as security for the performance of any obligation.


1.33 PARTY WALL means each wall or fence, including the foundations thereof, which is built as a part of the original improvements on a Lot within The Planned Community and constructed on the boundary line between adjoining lots. Such wall or fence, including foundations thereof, which constitute a Party Wall shall be shared, owned and used in common by the Owners of two or more Dwelling Units located in the same Building as more fully defined by Paragraph 7.23 hereof.

1.34 PERIOD OF DECLARANT CONTROL means that period of time as defined in Paragraph 4.7 hereof.

1.35 PERSON means a natural person, a corporation, a partnership, an association, a trustee, a limited liability company, a joint venture, or any other entity recognized as being capable of owning real property under Colorado law.

1.36 THE PLANNED COMMUNITY means such real property and the improvements located thereon as more fully described on Exhibits A and B attached hereto.

In the event that additional real property, as more fully described in Exhibit C attached hereto, is made subject to this Declaration in the manner provided in ARTICLE TWELVE hereof, "The Planned Community" shall from the date such additional real property is made subject to this Declaration, include any parts thereof designated as "The Planned Community" (including all improvements thereon) in such Supplemental Declarations.

1.37 PLAT means the final plat recorded in the records of the Clerk and Recorder of Larimer County, Colorado.

1.38 PROJECT DOCUMENTS means this Declaration and the Plat recorded and filed pursuant to the provisions of the Act, the Articles of Incorporation and Bylaws of the Association, the Design Review Guidelines, and the Rules and Regulations, if any, as they may be amended from time to time. Any exhibit, schedule or certification accompanying a Project Document is a part of that Document.

1.39 RULES means the Rules and Regulations adopted by the Board of Directors for the regulation and management of The Planned Community as amended from time to time.

1.40 SECURITY INTEREST means an interest in real estate or personal property created by contract or conveyance which secures payment or performance of any obligation. The term includes a lien created by a mortgage, deed of trust, trust deed, security deed, contract for deed, land sales contract, lease intended as security, assignment of leases or rents intended as security, pledge of an ownership interest in the Association, and any other consensual lien or title retention contract intended as security for an obligation.

1.41 SPECIAL ASSESSMENTS means those Assessments defined in Paragraph 5.4(f) hereof.

1.42 SUPPLEMENTAL DECLARATION means a written instrument containing covenants, conditions, restrictions, reservations, easements and other provisions, or any combination thereof, which is recorded, annexing in accordance with ARTICLE TWELVE hereof, a portion of the real property described on Exhibit C hereof to The Planned Community.

1.43 TURNOVER DATE means the date the Period of Declarant Control terminates as more fully set forth in Paragraph 4.7 hereof.

1.44 UNIT means a Dwelling Unit as defined in Paragraph 1.21 hereof.

1.45 VA AND/OR FHA APPROVAL means that The Planned Community has been approved by the Veterans Administration and/or the Federal Housing Administration so that such agencies will insure or guarantee loans made upon the Lots within The Planned Community.



ARTICLE TWO: SCOPE OF THE DECLARATION

2.1 Property Subject to this Declaration. Declarant, as the Owner of fee simple title to The Planned Community, expressly intends to and, by recording this Declaration, does hereby subject The Planned Community to the provisions of this Declaration.

2.2 Conveyances Subject to this Declaration. All easements, restrictions, conditions, obligations, reservations, rights, benefits and privileges which are granted, created, reserved or declared by this Declaration shall be deemed to be covenants appurtenant to and running with the land, and shall at all times inure to the benefit of and be binding on any person having at any time any interest or estate in The Planned Community, and their respective heirs, successors, representatives or assigns.

Any instrument recorded subsequent to this Declaration and purporting to establish and effect any interest in The Planned Community shall be subject to the provisions of this Declaration despite any failure to make reference thereto.

2.3 Owner's Rights Subject to this Declaration. Each Owner shall own his or her Lot in fee simple and shall have full and complete dominion thereof, subject to the provisions of this Declaration.

2.4 Number of Lots. The number of Lots within the First Phase of The Planned Community is seven. The Declarant reserves the right but not the obligation to create additional Lots by the expansion of The Planned Community in accordance with ARTICLE TWELVE hereof.

2.5 Identification of Lots. The identification number of each Lot is shown on the Plat of The Planned Community.

2.6 Lot Boundaries. The boundaries of each Lot are located as shown on the Plat of The Planned Community.



ARTICLE THREE: THE COMMON AREAS

3.1 Common Area Dedication. The Declarant in recording the Plat of The Planned Community, in the records of the County Clerk and Recorder of Larimer County, Colorado, has designated certain areas of The Planned Community as Common Areas, more fully described on Exhibit B attached hereto.

The Common Areas are not dedicated for use by the general public, but are dedicated to the common use and enjoyment of only the Owners of Lots located within The Planned Community and such Owner's Guests, as more fully provided for in this Declaration.

Said Plat is hereby incorporated herein and made a part of this Declaration.

3.2 Title to the Common Areas. The Declarant hereby covenants that it will convey to the Association fee simple title to the Common Areas prior to the conveyance of the first Lot within The Planned Community to an Owner other than Declarant.

3.3 Duty to Accept the Common Areas Transferred by Declarant. The Association shall accept title to said Common Areas and agrees to own and maintain any property, including all improvements located thereon, and personal property relating thereto, transferred to the Association by Declarant as Common Areas. Any property or interest in property transferred to the Association by Declarant shall be transferred to the Association free and clear of all liens and encumbrances (other than the lien of real estate taxes not then due and payable) and Declarant shall furnish and pay for a title insurance policy reflecting same.

3.4 Duty to Manage and Care for the Common Areas. The Association shall manage, operate, care for, insure, maintain, repair and reconstruct all of the Common Areas and the improvements located thereon and keep the same in a safe, attractive and desirable condition for the use and enjoyment of all of the Owners.

3.5 Owner's Rights in the Common Areas. Every Owner and such Owner's Guests shall have the right and easement of use and enjoyment in and to the Common Areas, which shall be appurtenant to and shall pass with the title of the Lot to such Owner, subject to the Development Rights and Special Declarant Rights of the Declarant reserved herein and the following rights of the Board of Directors:

(a) To borrow money to improve the Common Areas and to mortgage said Common Areas as security for any such loan; provided, however, that the Association may not subject any portion of the Common Areas to a security interest unless such is approved by Owners to which at least eighty percent of the votes in the Association are allocated, including eighty percent of the votes allocated to Lots not owned by the Declarant as more fully set forth in §38-33.3-312 of the Act.

(b) To convey or dedicate all or any part of the Common Areas for such purposes and subject to such conditions as may be agreed to by the Owners to which at least eighty percent of the votes in the Association are allocated, including eighty percent of the votes allocated to Lots not owned by the Declarant as more fully set forth in §38-33.3-312 of the Act.

The granting of permits, licenses and easements shall not be deemed a conveyance or encumbrance within the meaning of this Paragraph as more fully set forth in §38-33.3-312 of the Act.

(c) To promulgate and adopt Rules and Regulations with which each Owner and their Guests shall strictly comply.

(d) To suspend the voting rights of a Owner for any period during which any Assessment remains unpaid and, for a period not to exceed sixty days, for any infraction of the Declaration, Bylaws or Rules and Regulations.

(e) To take such steps as are reasonably necessary to protect the Common Areas against foreclosure.

(f) To enter into, make, perform or enforce any contracts, leases, agreements, licenses, easements and rights-of-way, for the use of Common Areas or other property by Owners and Guests for any purpose the Board may deem to be useful, beneficial or otherwise appropriate.

(g) To close or limit the use of the Common Areas temporarily while maintaining, repairing and making replacements in the Common Areas, or permanently if approved by Owners to which at least eighty percent of the votes in the Association are allocated.

(h) To make such use of the Common Areas as may be necessary or appropriate for the performance of the duties and functions which it is obligated or permitted to perform under this Declaration.

(i) The rights granted to the Board of Directors in Paragraph 4.13 hereof.

3.6 Delegation of Use. Any Owner may delegate his or her right of enjoyment to the Common Areas and facilities to their Guests.



ARTICLE FOUR: THE ASSOCIATION

4.1 Name. The name of the Association is THE GREYROCK COMMONS HOMEOWNERS ASSOCIATION, and it is a Planned Community.

4.2 Purposes and Powers. The Association, through its Board of Directors, shall perform functions and manage The Planned Community as provided in this Declaration so as to further the interests of the residents of The Planned Community and Members of the Association. Any purchaser of a Lot shall be deemed to have assented to, ratified and approved such designations and management. The Association shall have all the power necessary or desirable to effectuate such purposes.

The Board of Directors shall have all of the powers, authority and duties permitted pursuant to the Act necessary and proper to manage the business and affairs of the Association.

4.3 Board of Directors. The affairs of the Association shall be managed by a Board of Directors which may by resolution delegate authority to a Managing Agent for the Association as more fully provided for in the Bylaws, provided no such delegation shall relieve the Board of final responsibility.

4.4 Articles and Bylaws. The purposes and powers of the Association and the rights and obligations with respect to Members set forth in this Declaration may and shall be amplified by provisions of the Articles of Incorporation and Bylaws of the Association. In the event either the Articles or Bylaws conflict with the Declaration, the Declaration shall control. In the event the Articles conflict with the Bylaws, the Articles shall control.

4.5 Membership. Members of the Association shall be every record owner of a Lot subject to this Declaration. Membership shall be appurtenant to and may not be separated from ownership of any Lot. Ownership of such Lot shall be the sole qualification for such membership. Where more than one person holds interest in any Lot, all such persons shall be Members.

4.6 Voting Rights. The Association shall have one class of voting membership. Owners shall be entitled to one vote for each Lot owned.

The vote for such Lot, the ownership of which is held by more than one Owner, may be exercised by any one of them, unless an objection or protest by any other holder of an interest of the Lot is made prior to the completion of the vote, in which case the vote for such Lot shall be exercised, as the persons holding such interest shall determine between themselves. Should the joint owners of a Lot be unable, within a reasonable time, to agree upon how they will vote any issue, they shall be passed over and their right to vote on such issue shall be lost.

The total number of votes which may be cast in connection with any matter shall be equal to the total number of Lots then existing within The Planned Community.

4.7 Declarant Control of the Association. Subject to Paragraph 4.8 hereof, there shall be a "Period of Declarant Control" during which a Declarant may appoint and remove the officers and members of the Board. The Period of Declarant Control terminates no later than the earlier of:

(a) Sixty days after conveyance of seventy-five percent of the Lots That May Be Created to Owners other than the Declarant; or

(b) Two years after the last conveyance of a Lot by the Declarant in the ordinary course of business to Owners other than Declarant; or

(c) Two years after any right to add new Lots was last exercised.

A Declarant may voluntarily surrender the right to appoint and remove officers and members of the Board of Directors before termination of the Period of Declarant Control. In that event, the Declarant may require, for the duration of the Period of Declarant Control, that specified actions of the Board of Directors, as described in a recorded instrument executed by the Declarant, be approved by the Declarant before they become effective.

4.8 Election by Owners.

Not later than sixty days after conveyance of twenty-five percent of the Lots That May Be Created to Owners other than Declarant, at least one member and not less than twenty-five percent of the members of the Board of Directors must be elected by Owners other than the Declarant.

Not later than sixty days after conveyance of fifty percent of the Lots That May Be Created to Owners other than Declarant, not less than thirty-three and one-third percent of the members of the Board of Directors must be elected by Owners other than the Declarant.

Not later than the termination of the Period of Declarant Control, the Owners shall elect a Board of Directors of at least three members, at least a majority of whom must be Owners other than the Declarant. The Board of Directors shall elect the officers of the Association. The Owners' Board of Directors shall take office upon termination of the Period of Declarant Control upon election.

4.9 Delivery of Documents by Declarant. Within sixty days after the Owners other than the Declarant elect a majority of the members of the Board of Directors, the Declarant shall deliver without charge to the Board of Directors all property of the Owners and of the Association held by or controlled by the Declarant, including, without limitation, the following items:

(a) The original or a certified copy of the recorded Declaration, as amended, the Association's Article of Incorporation, together with a Certificate of Good Standing, Bylaws, minute books, other books and records, and any Rules and Regulations which may have been promulgated;

(b) An accounting for Association funds and financial statements from the date the Association received funds and ending on the date the Period of Declarant Control ends in accordance with §38-33.3-303(9)(b) of the Act;

(c) The Association funds or control thereof;

(d) All of the tangible personal property that has been represented by the Declarant to be the property of the Association and has been used exclusively in the operation and enjoyment of the Common Areas; a copy of any plans and specifications used in the construction of any improvements in the Common Areas; and an inventory of these properties;

(e) All insurance policies then in force in which the Owners, the Association, or its directors and officers are named as insured persons;

(f) Any other permits issued by governmental bodies applicable to The Planned Community and which are currently in force or which were issued within one year prior to the date on which Owners other than the Declarant took control of the Association;

(g) Written warranties of the contractor, subcontractors, suppliers and manufacturers that are still effective;

(h) A roster of Owners and Eligible Mortgagees and their addresses and telephone numbers, if known, as shown on the Declarant's records;

(i) Employment contracts in which the Association is a contracting party; and

(j) Any service contract in which the Association is a contracting party or in which the Association of the Owners have any obligation to pay a fee to the persons performing the services.

4.10 Budget. The Board of Directors shall cause to be prepared, at least sixty days prior to the commencement of each calendar year, a Budget for such calendar year. Within thirty days after the adoption of any Budget by the Board, the Board shall mail, by ordinary first-class mail, or otherwise deliver, a summary of the Budget to each Owner and shall set a date for a meeting of the Owners to consider ratification of the Budget not less than fourteen days nor more than sixty days after mailing or other delivery of the summary.

Unless at that meeting Owners of Lots to which at least sixty-seven percent of the votes in the Association are allocated reject the Budget, the Budget shall be deemed ratified whether or not a quorum is present. In the event the Budget is rejected, the Budget last ratified by the Owners must be continued until such time as the Owners ratify a subsequent budget adopted by the Board of Directors.

4.11 Association Agreements. Any agreement for professional management of The Planned Community or any contract providing for services of the Declarant, may not exceed one year. Any such agreement must provide for termination by either party without cause and without payment of a termination fee or penalty upon thirty days' written notice.

The Association shall not be bound either directly or indirectly to contracts or leases (including management contracts) entered into during the Period of Declarant Control unless the Association is provided with a right of termination of any such contract or lease without cause, which is exercisable without penalty at any time after such conversion upon not more than thirty days' notice to the other party thereto.

4.12 Indemnification. Each Officer, Director and committee member of the Association shall be indemnified by the Association against all expenses and liabilities including attorney fees, reasonably incurred by or imposed upon him or her in any proceeding to which he or she may be a party, or in which he or she may become involved, by reason of his or her being or having been an Officer, Director or committee member of the Association, or any settlements thereof, whether or not he or she is an Officer, Director or committee member of the Association at the time such expenses are incurred, to the full extent permitted by Colorado law.

4.13 Certain Rights and Obligations of the Association.

(a) Attorney-in-Fact. This Declaration does hereby make mandatory the irrevocable appointment of an Attorney-in-Fact to deal with The Planned Community upon its damage, destruction, condemnation and obsolescence.

The Board of Directors is hereby irrevocably appointed attorney-in-fact for the Owners, and each of them, to manage, control and deal with the interest of such Owner in the Common Areas so as to permit the Association to fulfill all of its duties and obligations hereunder and to exercise all of its rights hereunder, to deal with The Planned Community upon its destruction, condemnation or obsolescence as hereinafter provided.

The acceptance by any person of any interest in any Lot shall constitute an appointment of the Board of Directors as attorney-in-fact as provided above and hereinafter. The Board of Directors shall be granted all of the powers necessary to govern, manage, maintain, repair, administer and regulate The Planned Community and to perform all of the duties required of it.

(b) Contracts, Easements and Other Agreements: The Board of Directors shall have the right to enter into, grant, perform, enforce, cancel and vacate: contracts, easements, licenses, leases, agreements, and/or rights-of-way, for the use by Owners, their Guests, and other persons, concerning the Common Areas.

Any of such contracts, licenses, leases, agreements, easements and/or rights-of-way, shall be upon such terms and conditions as may be agreed to from time to time by the Board of Directors, without the necessity of the consent thereto, or joinder therein, by the Owners or First Mortgagees.

(c) Other Association Functions: The Association may undertake any activity, function or service for the benefit of or to further the interests of all, some or any Members on a self-supporting, Special Assessment or Common Expense Assessment basis.

(d) Implied Rights: The Board of Directors shall have and may exercise any right or privilege given to it expressly by this Declaration, or reasonably to be implied from the provisions of this Declaration, or given or implied by law, or which may be necessary or desirable to fulfill its duties, obligations, rights or privileges.

4.14 Certain Rights and Obligations of the Declarant. So long as there are unsold Lots within The Planned Community owned by the Declarant, the Declarant shall enjoy the same rights and assumes the same duties as they relate to each individual unsold Lot.



ARTICLE FIVE: ASSESSMENTS

5.1 Obligation. Each Owner, including Declarant, by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, covenants and agrees and shall be personally obligated to pay to the Association (a) Common Expense Assessments, (b) Exterior Maintenance Assessments, (c) Insurance Assessments, (d) Special Assessments, (e) Fines, (f) Individual Assessments, and (g) Costs of Enforcement, which shall be a continuing lien upon the Lot against which each such Assessment is levied.

The obligation for such payments by each Owner to the Association is an independent personal covenant with all amounts due, from time to time, payable in full when due without notice or demand and without setoff or deduction. All Owners of each Lot shall be jointly and personally liable to the Association for the payment of all Assessments and Costs of Enforcement attributable to their Lot.

The personal obligation for delinquent assessments shall not pass to such Owner's successors in title unless expressly assumed by them.

5.2 Purpose of the Assessments. The Assessments levied by the Association shall be used exclusively for the purpose of (a) promoting the health, safety and welfare of the residents of The Planned Community and the Members of the Association, (b) providing for the improvement, repair, maintenance and reconstruction of the Common Areas, (c) providing for the exterior maintenance of all Dwelling Units constructed upon the Lots located within The Planned Community, (d) providing blanket hazard insurance for all of the Dwelling Units located within The Planned Community and insurable improvements on the Common Areas, (e) providing liability insurance to cover incidents on the Common Areas, and (f) satisfying any other purpose reasonable, necessary or incidental to such purposes.

Such assessments shall include the establishment and maintenance of a reserve fund for the improvement, maintenance, reconstruction, and repair of the Common Areas and of Dwelling Unit exteriors which the Association has an on going duty to replace, repair and/or maintain on a periodic basis.

5.3 Date of Commencement of the Assessments. The Common Expense Assessment shall commence as to all Lots no later than sixty days after the first Lot is conveyed to an Owner other than the Declarant.

Until the commencement of the collection of the Common Expense Assessment, the Declarant shall pay all of the expenses incurred and paid for by the Association, not to include any allocation to the Reserve Fund.

The Exterior Maintenance Assessment and Insurance Assessment as to any Lot shall commence upon the issuance of a Certificate of Occupancy for the Dwelling Unit located on such Lot.

5.4 Levy of Assessments.

(a) Common Expense Assessments. Common Expense Assessments shall be levied on all Lots based upon a budget of the Association's cash requirements. The Common Expense Assessment shall be prorated among the Lots in accordance with that Lot's Common Expense Assessment Liability as set forth in Paragraph 1.3 hereof and shall commence in accordance with Paragraph 5.3 hereof.

The Common Expense Assessment shall not include the expense of procuring and maintaining the insurance coverages required by Paragraph 10.2 hereof, but shall be assessed as provided for in Paragraph 5.4(c).

An additional amount will be added to the Common Expense Assessment for each Owner who owns a Garage or Carport located within The Planned Community. This amount shall be collected from each Garage or Carport Owner and be used solely for the maintenance, repair and the creation of a reserve fund for the replacement and/or reconstruction of the Garages and Carports located within The Planned Community.

(b) Exterior Maintenance Assessment. The Board of Directors shall assess each Owner of a Dwelling Unit constructed upon a Lot located within The Planned Community the cost of providing exterior repair, maintenance and reconstruction of such Dwelling Unit in accordance with Paragraph 11.2 hereof. Such Assessment shall include the establishment and maintenance of a reserve fund for maintenance, repair and reconstruction of the Dwelling Units' exterior which the Association has an on going duty to replace, repair and maintain on a periodic basis.

Such Assessment shall be prorated among the Lots in accordance with that Lot's Exterior Maintenance Assessment Liability as set forth in Paragraph 1.3 hereof and shall commence in accordance with Paragraph 5.3 hereof.

(c) Insurance Assessment. The Board of Directors shall assess each Owner of a Dwelling Unit located upon The Planned Community the cost of procuring, maintaining and administering the blanket property hazard insurance coverage for such Dwelling Units and the insurable improvements in the Common Areas in accordance with Paragraph 10.2 hereof.

Such Assessment shall be prorated among the Lots in accordance with that Lot's Insurance Assessment Liability as set forth in Paragraph 1.3 hereof and shall commence in accordance with Paragraph 5.3 hereof.

(d) Individual Assessments. The Board of Directors shall have the right to individually levy upon any Owner or Owners amounts as provided for by this Declaration, to include but not be limited to, charges levied under Paragraphs 7.5, 7.15, 7.16, 7.17, 10.2, 10.6, 12.1 and 12.2 hereof. No Individual Assessment shall be levied until the Owner or Owners to be charged have been given a Notice and Hearing as provided for in the Bylaws of the Association. Individual Assessments shall be collected as part of the Costs of Enforcement.

(e) Fines. The Board of Directors of the Association shall have the right to levy a Fine against an Owner or Owners for each violation of this Declaration, the Bylaws, the Articles and the Rules and Regulations of the Association. No such Fine shall be levied until the Owner or Owners to be charged have been given a Notice and Hearing as provided for in the Bylaws of the Association.

Fines may be levied in a reasonable amount as determined from time to time by the Board of Directors in its discretion and uniformly applied. Fines shall be collected as part of the Costs of Enforcement.

(f) Special Assessments. In addition to the other Assessments authorized herein, the Board of Directors, subject to the requirements set forth below, may levy a Special Assessment for the purpose of defraying, in whole or in part, any unexpected expense to include but not be limited to, the cost of any construction, reconstruction, improvement, repair or replacement of a capital improvement upon the Common Areas, including fixtures and personal property relating thereto, or for the funding of any operating deficit incurred by the Association provided that any such Assessment shall have the approval of Owners to whom at least sixty-seven percent of the votes in the Association are allocated, who are voting in person or by proxy at a meeting duly called for this purpose.

Any such Special Assessment shall be levied against each Lot in accordance with that Lot's Common Expense Liability determined in accordance with Paragraph 1.3 hereof. Notwithstanding the foregoing, Special Assessments levied during the Period of Declarant Control may not be used for the purpose of constructing capital improvements.

Written notice of any meeting called for the purpose of making a Special Assessment shall be sent to all Owners not less than fifteen days nor more than thirty days in advance of the meeting. At the first such meeting called, the presence of Owners or of proxies to whom at least sixty percent of the votes in the Association are allocated shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be one-half of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty days following the preceding meeting.

If The Planned Community has been or is to be approved by the Federal Housing Administration and/or Veterans Administration, then until the termination of the Period of Declarant Control in accordance with Paragraph 4.7 hereof, all Special Assessments for capital improvements in addition to the approval of the Owners as required above will require the written consent of the Veterans Administration and/or the Federal Housing Administration.

The omission or failure of the Board of Directors to levy Assessments for any period shall not be deemed a waiver, modification or a release of the Owners from their obligation to pay.

No Owner may waive or otherwise escape liability for the Common Expense Assessment provided for herein by the non-use of the Common Areas or the abandonment of his or her Lot.

5.5 Due Date. Fines and Individual Assessments shall be due and payable as established by the Board of Directors.

All other Assessments shall be levied on an annual basis and shall be due and payable in installments, in advance, in such frequency as the Board of Directors determines in its discretion from time to time, provided that the initial assessments shall be adjusted to reflect the time remaining in the first Association's fiscal year. Any Owner purchasing a Lot between annual due dates shall pay a prorated share.

Written notice of all Assessments shall be sent to each Owner subject thereto specifying the type of Assessment, the amount and the date such Assessment is due.

5.6 Remedies for Nonpayment of Assessments. If any Assessment (to include Costs of Enforcement) is not fully paid within fifteen days after the same becomes due and payable, then:

(a) interest shall accrue at the default rate set by the Rules and Regulations of the Association on any amount of the Assessment in default accruing from the due date until date of payment;

(b) the Board may accelerate and declare immediately due and payable all unpaid installments of the Assessment otherwise due during the fiscal year during which such default occurred;

(c) the Board may bring an action at law in any court of competent jurisdiction against any Owner personally obligated to pay the same and obtain a judgment for the amounts due.

(d) the Board may proceed to foreclose its lien against the Lot pursuant to the power of sale granted to the Association by this Declaration in the manner and form provided by Colorado law for foreclosure of real estate mortgages.

An action at law or in equity by the Association against an Owner to recover a judgment for unpaid Assessments may be commenced and pursued by the Association without foreclosing or in any way waiving the Association's lien for the Assessments.

5.7 The Assessment Lien. The Association is hereby granted an Assessment Lien against each Lot for any Assessment levied by the Board of Directors and for Costs of Enforcement levied against such Lot Owners when the Lot Owner fails to pay as required by the Declaration. All Costs of Enforcement incurred pursuant to this Declaration are enforceable as Assessments. If an Assessment is payable in installments, the full amount of the Assessment is a lien from the time the first installment thereof becomes due.

The Association's lien on a Lot for Assessments shall be superior to all other liens and encumbrances except the following:

(a) real property ad valorem taxes and special assessment liens duly imposed by as Colorado governmental or political subdivision or special taxing district, or any other liens made superior by statute; and

(b) the lien of any First Mortgagee except to the extent the Act grants priority for Assessments to the Association.

The Act does not affect the priority of mechanics' or materialmen's liens.

Recording of the Declaration constitutes record notice and perfection of the lien. No further recordation of any claim of lien for Assessments under this Article is required. However, the Board of Directors may prepare, and record in the county in which the Lot is located, a written notice setting forth the amount of the unpaid indebtedness, the name of the Owner of the Lot, and a description of the Lot. If a lien is filed, the cost thereof shall be considered a Cost of Enforcement.

Any First Mortgagee who acquires title to a Lot by virtue of foreclosing a first mortgage or by virtue of a deed in lieu of foreclosure will take the Lot free of any claims for unpaid Assessments and Costs of Enforcement against that Lot which have accrued prior to the time such First Mortgagee acquires title to the Lot, except to the extent the Act grants lien priority for Assessments of the Association.

Sale or transfer of any Lot shall not affect the lien for said Assessments except that sale or transfer of any Lot pursuant to foreclosure by any First Mortgagee, or any proceeding in lieu thereof, including deed in lieu of foreclosure, or cancellation or forfeiture shall only extinguish the Assessment Lien only to the extent provided by Colorado law. No such sale, deed in lieu of foreclosure, nor cancellation or forfeiture shall relieve any Lot Owner from continuing liability for any Assessment thereafter becoming due, nor from the lien thereof.

In any action by an Association to collect Assessments and Costs of Enforcement or to foreclose a lien for unpaid Assessments, the court may appoint a receiver for the Owner to collect all sums alleged to be due from the Owner prior to or during the pending of the action. The court may order the receiver to pay any sums held by the receiver to the Association during the pending of the action to the extent of the Association's Common Expense Assessments and Costs of Enforcement. The rights of the Association shall be expressly subordinate to the rights of any First Mortgagee of a Lot under any assignment of rents given in connection with a first deed of trust.

The Assessment Lien hereby given shall also be a lien upon all of the rents and profits of the encumbered Lot; provided, however, the lien shall be subject and subordinate to the rights of any First Mortgagee of a Lot under any assignment of rents given in connection with a first deed of trust. Without prejudice to any other right or remedy, the Association may exercise its lien rights to rents and profits by delivering a Notice of Exercise to the occupant or any payor of rents and profits, and thereafter shall be entitled to collect all such rents and profits to the extent of any delinquency.

The Association's lien on a Lot for Assessments and Costs of Enforcement shall be superior to any homestead exemption now or hereafter provided by the laws of the State of Colorado or any exemption now or hereafter provided by the laws of the United States. The acceptance of a deed to a Lot subject to this Declaration shall constitute a waiver of the homestead and any other exemption as against said Assessment Lien.

5.8 Surplus Funds. Any surplus funds of the Association remaining after payment of or making provisions for Common Expenses and any prepayment of or making provisions for reserves shall be retained by the Association as unallocated reserves and need not be credited to the Owners in proportion to their Common Expense Liability to reduce their future Common Expense Assessments.

5.9 Working Capital Fund. At the closing of the initial sale of a Lot to an Owner other than the Declarant, a non-refundable contribution shall be made by the Purchaser to the Working Capital Fund of the Association in the amount equal to at least two months' installment of the Common Expense Assessment for each Lot. Said contribution shall be collected and transferred to the Association at the time of closing of the sale by Declarant of each Lot and shall, until used, be maintained in a segregated account with other such working capital funds for the use and benefit of the Association, including, without limitation, to meet the unforeseen expenditures or to purchase additional equipment, property or services.

The Working Capital Fund is to be turned over to the Association for deposit to a segregated fund when control of the Association is transferred to the Owners. Upon a later transfer of his or her Lot, an Owner may be entitled to a credit from his or her transferee (but not from the Association) for the aforesaid contribution to the Working Capital Fund.

The Declarant may reimburse itself for funds it paid the Association for an unsold Lot's share paid at time of turnover to the Working Capital Fund by using funds collected at Closing when subsequent Lots are sold. The Declarant is prohibited from using the Working Capital Fund to defray any of its expenses, reserve contributions or construction costs, or to make up any budget deficits while it has control of the Association.

5.10 Certificate of Status of Assessments. The Association shall furnish to an Owner or such Owner's First Mortgagee upon written request delivered personally or by certified mail, first class postage prepaid, return receipt requested, to the Association's Registered Agent, a statement setting forth the amount of unpaid Assessments currently levied against such Owner's Lot.

The statement shall be furnished within fourteen business days after receipt of the request and is binding upon the Association, the Board of Directors, and every Owner. If no statement is furnished to the Owner or First Mortgagee, delivered personally or by certified mail, first class postage prepaid, return receipt requested, to the inquiring party, then the Association shall have no right to assert a priority lien upon the Lot for unpaid Assessments which were due as of the date of the request.

5.11 No Offsets. All Assessments shall be payable in the amounts specified in the levy thereof, and no offsets or reduction thereof shall be permitted for any reason including, without limitation, any claim that the Association or the Board of Directors is not properly exercising its duties and powers under this Declaration. The Declarant is exempt from the requirements of this Paragraph 5.11.



ARTICLE SIX: ARCHITECTURAL APPROVAL/DESIGN REVIEW

Each Improvement as defined below must be constructed in accordance with the "Design Guidelines," if available, and approved in accordance with this ARTICLE SIX.

6.1 Approval of Improvements Required. The approval by the Design Review Committee (the "Committee") shall be required prior to the commencement of the construction of Improvements as defined in Paragraph 1.26 hereof on any portion of The Planned Community, except original first built Improvements constructed by Declarant and except as prior approval may be waived or certain Improvements may be exempted under written guidelines or rules promulgated by the Committee.

A purchase of any Lot within The Planned Community does not grant any implied guarantee of approval of the improvement to be located thereon by the Committee.

The Board of Directors shall have the authority and standing, on behalf of the Association, to enforce in courts of competent jurisdiction decisions of the Committee.

6.2 Membership of the Committee. The Committee shall consist of three members, all of whom shall be appointed by the Declarant. The Declarant shall have the continuing right to appoint and reappoint the members of the Committee, which right shall terminate at the option of the Declarant by its written notice to the Secretary of the Association, but in any event shall terminate without further act or deed in accordance with the limitations set forth in Paragraph 9.3 hereof. Thereafter the Board of Directors shall have the right to appoint the members of the Committee. Members of the Committee may, but shall not necessarily, be Members of the Association.

Members of the Committee appointed by Declarant may be removed at any time by Declarant and shall serve until resignation or removal by Declarant. Members of the Committee appointed by the Board of Directors may be removed at any time by the Board, and shall serve for such term as may be designated by the Board or until resignation or removal by the Board.

6.3 Address of the Committee. The address of the Committee shall be that of the principal office of the Association.

6.4 Submission of Plans/Design Review Fee. Prior to commencement of work to accomplish any proposed Improvement, the Person proposing to make such Improvement ("Applicant") shall submit to the Committee, at its offices, such descriptions, surveys, plot plans, drainage plans, elevation drawings, construction plans, specifications and samples of materials and colors as the Committee shall reasonably request, showing the nature, kind, shape, height, width, color, materials, and location of the proposed Improvement.

The Committee may, in its guidelines or rules, provide for the payment of a reasonable fee to accompany each request for approval of any proposed Improvement. The Committee may provide that the amount of such fee shall be uniform for similar types of any proposed Improvements or that the fee shall be determined in any other reasonable manner, such as the estimated cost of the proposed Improvement. Said fee may be used to compensate any consultant as the Committee deems necessary to assist the Committee in the performance of its duties. Members of the Committee may be reimbursed for services rendered and for directly related out-of-pocket expenses.

The Committee may require submission of additional plans, specifications or other information prior to approving or disapproving the proposed Improvement. Until receipt by the Committee of all required materials in connection with the proposed Improvement, the Committee may postpone review of any materials submitted for approval by a particular Applicant.

No Improvement of any kind shall be erected, altered, placed, or maintained within The Planned Community unless and until the final plans, elevations, and specifications therefor have received written approval by the Committee as herein provided.

6.5 Delegation/Waiver. The Committee may at its discretion delegate to the Board of Directors any of its powers granted to it by this Article by written notice to the Board of Directors indicating what powers and authority are granted to the Board. Such delegation shall be effective from the date such notice is recorded.

The approval or consent of the Committee, any representative thereof, or the Board of Directors, to any application for architectural approval shall not be deemed to constitute a waiver of any right to withhold or deny approval or consent by the Committee, any representative thereof, or the Board of Directors, as to any application or other matters whatsoever as to which approval or consent may subsequently or additionally be required.

The Committee may waive or grant reasonable variances or adjustments to any provision of this ARTICLE SIX in the event there is a practical difficulty or unnecessary hardship.

6.6 Criteria for Approval. The Committee shall have the right to disapprove any proposed Improvement which is not in accordance with the Design Guidelines, or is not suitable or desirable in the Committee's opinion for aesthetic or other reasons.

In passing upon the Improvement the Committee shall have the right to take into consideration the suitability of the proposed Improvement and of the materials of which it is to be built, the color scheme, the site upon which it is proposed to erect the same, the harmony thereof with the surroundings, the topography of the land and the effect of the Improvement as planned on the outlook from the adjacent or neighboring property, and if it is in accordance with all of the provisions of this Declaration.

The Committee may disapprove the proposed Improvement if the plans and specifications submitted are incomplete, or in the event the Committee deems the materials submitted be contrary to the spirit or intent of the Declaration. The Committee may condition its approval of any proposed Improvement upon the making of such changes thereon as the Committee may deem appropriate.

6.7 Decision of the Committee. The decision of the Committee shall be made within thirty days after receipt by the Committee of all materials required by the Committee unless such time period is extended by mutual agreement. The decision shall be in writing and, if the decision is not to approve a proposed Improvement, the reasons therefor shall be stated. The decision of the Committee shall be promptly transmitted to the Applicant at the address furnished by the Applicant to the Committee.

A majority vote of the Committee shall constitute the action of the Committee.

6.8 Appeal to the Board of Directors. If the Committee disapproves or imposes conditions on the approval of a proposed Improvement, the Applicant may appeal to the Board of Directors by giving written notice of such appeal to the Board of Directors and the Committee within ten days after notice of such disapproval or conditional approval is given to the Applicant.

The Board of Directors shall hear the appeal with reasonable promptness after reasonable notice of such hearing to the Applicant and the Committee and shall decide, with reasonable promptness, whether or not the proposed Improvement or the conditions imposed by the Committee shall be approved, disapproved or modified.

6.9 Failure of Committee to Act on Plans. Any request for approval of a proposed Improvement shall be deemed approved, unless disapproval or a request for additional information or materials is transmitted to the Applicant by the Committee within thirty days after the date of receipt by the Committee of all necessary materials as determined by the Committee.

6.10 Prosecution of Work After Approval. After approval of any proposed Improvement, the proposed Improvement shall be accomplished as promptly and diligently as possible and in complete conformity with the description of the proposed Improvement, any materials submitted to the Committee in connection with the proposed Improvement and any conditions imposed by the Committee. Failure to complete any proposed Improvement within eight months from the date the foundation was dug in accordance with the description and materials furnished to, and the conditions imposed by, the Committee, shall constitute a violation of this Article.

6.11 Notice of Completion. Upon completion of the Improvement, the Applicant shall give written Notice of Completion to the Committee. Until the date of receipt of a Notice of Completion, the Committee shall not be deemed to have notice of completion of any Improvement.

6.12 Inspection of Work. The Committee or its duly authorized representative shall have the right to inspect any Improvement prior to or after completion; provided that the right of inspection shall terminate thirty days after the Committee receives a Notice of Completion from the Applicant.

6.13 Notice of Noncompliance. If, as a result of inspections or otherwise, the Committee finds that any Improvement has been done without obtaining the approval of the Committee, or was not done in substantial compliance with the description and materials furnished to, and any conditions imposed by, the Committee, or was not completed within eight months from the date the foundation was dug, the Committee shall notify the Applicant in writing of the noncompliance; which notice shall be given, in any event within thirty days after the Committee has inspected the Improvement, but in no event no later than thirty days after the Committee's receipt of such Applicant's Notice of Completion. The Notice shall specify the particulars of the noncompliance and shall require the Applicant to take such action as may be necessary to remedy the noncompliance.

6.14 Failure of Committee to Act After Completion. If, for any reason other than the Applicant's act or neglect, the Committee fails to notify the Applicant of any noncompliance within thirty days after receipt by the Committee of written Notice of Completion from the Applicant, the Improvement shall be deemed to be in compliance if the Improvement was, in fact, completed as of the date of Notice of Completion.

6.15 Appeal to the Board of Directors of Finding of Noncompliance. If the Committee gives any Notice of Noncompliance, the Applicant may appeal to the Board of Directors by giving written notice of such appeal to the Board and the Committee within ten days after receipt by the Applicant of the Notice of Noncompliance. If, after a Notice of Noncompliance, the Applicant fails to commence diligently to remedy such noncompliance, the Committee shall request a finding of noncompliance by the Board of Directors by giving written notice of such request to the Board of Directors and the Applicant within thirty days after delivery to the Applicant of a Notice of Noncompliance. In either event, the Board of Directors after Notice and Hearing shall decide, with reasonable promptness, whether or not there has been such noncompliance and, if so, the nature thereof.


6.16 Correction of Noncompliance. If the Board of Directors determines that a noncompliance exists, the Applicant shall remedy or remove the same within a period of not more than thirty days from the date of receipt by the Applicant of the ruling of the Board of Directors. If the Applicant does not comply with the Board's ruling within such period, the Board may, at its option, record a "Notice of Noncompliance" against the Lot on which the noncompliance exists, or may remove the noncomplying Improvement or may otherwise remedy the noncompliance.

The Board may levy an Individual Assessment in accordance with Paragraph 5.4 hereof against the Owner of such Lot for such costs and expenses incurred. The right of the Board of Directors to remedy or remove any noncompliance shall be in addition to all other rights and remedies which the Board of Directors may have at law, in equity, or under this Declaration.

6.17 Meetings of the Committee. The Committee shall meet from time to time as necessary to perform its duties hereunder.

6.18 No Implied Waiver or Estoppel. No action or failure to act by the Committee or by the Board of Directors shall constitute a waiver or estoppel with respect to future action by the Committee or the Board of Directors. Specifically, the approval by the Committee of any Improvement shall not be deemed a waiver of any right or an estoppel to withhold approval or consent for any similar Improvement or similar proposals, plans, specifications or other materials submitted with respect to any other Improvement.

6.19 Estoppel Certificates. The Board of Directors shall, upon the reasonable request of any interested party and after confirming any necessary facts with the Committee, furnish a certificate with respect to the approval or disapproval of any Improvement or with respect to whether any Improvement was made in compliance herewith. Any person, without actual notice to the contrary, shall be entitled to rely on said certificate with respect to all matters set forth therein.

6.20 Record of Actions. The Committee shall report in writing to the Board of Directors all final actions of the Committee. The Committee shall not be required to keep the materials submitted beyond one year from date of approval.

6.21 Architectural Standards/Design Guidelines. The Committee may promulgate rules and regulations to interpret and implement the provisions of this Article. These rules and regulations shall be known as the "Design Review Guidelines" and shall contain, among other things, guidelines which will clarify the types of designs and materials that will be considered in design approval. The Applicant shall be responsible to apply for all permits and approvals required by the County.


6.22 No Liability for Committee Action. There shall be no liability imposed on the Committee, any member of said Committee, any authorized representative of said Committee, the Association, any member of the Board of Directors or Declarant for any loss, damage or injury arising out of or in any way connected with the performance of the duties of the Committee, if such party acted in good faith and without malice.

In reviewing any matter, the Committee shall not be responsible for passing on safety, whether structural or otherwise, or conformance with building codes or other governmental laws or regulations, nor shall its approval of an Improvement be deemed approval of such matters.



ARTICLE SEVEN: LAND USE AND OTHER RESTRICTIONS

7.1 Limitations and Restrictions. All Lots and Common Areas shall be held, used and enjoyed subject to the following limitations and restrictions, and subject to the exemptions for Declarant as set forth in this Declaration. The strict application of the following limitations and restrictions in any specific case may be modified or waived in whole or in part by the Committee if such strict application would be unreasonable or unduly harsh under the circumstances. Any such modification or waiver must be in writing.

7.2 Land Use. Each Owner shall be entitled to the exclusive ownership and possession of his or her Lot. Subject to the Development and Special Declarant Rights reserved by the Declarant in ARTICLE NINE hereof, no Lot within The Planned Community shall be used for any purpose other than single-family residential purposes as generally defined or for a home occupation so long as such occupation (a) is allowed by the local Zoning Codes, (b) has only signage which complies with Paragraph 7.11 hereof, or (c) does not utilize the excess parking spaces. Uses described as "day care" or "child care" facilities (licensed or unlicensed) are expressly prohibited except with the prior written permission of the Board of Directors.

No Improvement as herein defined, shall be erected on any part of The Planned Community which is not compatible with the character, quality and amenities associated with the neighborhood and approved in writing by the Committee in accordance with ARTICLE SIX hereof.

No Lot may be divided or subdivided or a fractional portion thereof sold or conveyed so as to be held in divided ownership, except that adjoining Lot Owners may sell or purchase adjoining property to relocate the boundary line between such properties with the prior written approval of the Committee and if such sale will not cause a violation of any setback, building or other restrictions contained herein. The density of The Planned Community cannot exceed the sum of the original density of the individual Lots approved under the subdivision plat.

7.3 Building Locations, Height Restrictions and Lot Coverage. The Committee shall approve the location, height and square footage of any Improvement placed on any Lot. No Improvement except the "Common House" shall exceed thirty-five feet in height as defined by the County's Building Code.

Such approval must be obtained before commencement of any construction or alteration in accordance with ARTICLE SIX hereof.

7.4 Temporary Structures. No temporary house trailer, garage or outbuilding shall be placed or erected upon part of The Planned Community except with the prior written approval of the Committee obtained in each instance.

No Dwelling Unit located upon The Planned Community shall be occupied in any manner at any time prior to its being fully completed in accordance with approved plans nor shall any Dwelling Unit when completed be in any manner occupied until there is compliance with all requirements, conditions, covenants, and restrictions herein set forth.

7.5 Restrictions on Garbage and Trash. Each Owner shall deposit all of his or her trash, garbage or other refuse in the designated central trash collection area. Each Owner shall keep his or her Lot at all times in a neat and clean condition, and grass and weeds shall be kept mowed. No trash, litter, garbage, lumber, metal, bulk materials, scrap refuse or debris of any kind shall be permitted to remain exposed upon any Lot so it is visible from any neighboring Lot or from the street.

The Board of Directors shall have the right and duty, through its agent and employees, after Notice and Hearing, to enter upon any Lot and remove such unsightly objects and materials. The cost of such removal shall be chargeable to such Owner by Individual Assessment in accordance with Paragraph 5.4(d).

7.6 Nuisances. No noxious or offensive activity shall be carried on upon The Planned Community or any part thereof, nor shall anything be done or maintained thereon which may be or become an annoyance or nuisance to the neighborhood or which is or may cause an unreasonable embarrassment, disturbance or annoyance to others, or detract from its value as an attractive residential community. Habitually barking, howling or yelping dogs shall be deemed a nuisance.

7.7 No Annoying Lights, Sounds or Odors. No light shall be emitted from any portion of The Planned Community which is unreasonably bright or causes unreasonable glare, and no sound or odor shall be emitted from any portion of The Planned Community which would reasonably be found by others to be noxious or offensive. Without limiting the generality of the foregoing, no exterior spot lights, searchlights, speakers, horns, whistles, bells or other light or sound devices shall be located or used on any portion of The Planned Community except with the prior written approval of the Committee.

7.8 No Hazardous Activities. No activity shall be conducted on any portion of The Planned Community which is or might be unsafe or hazardous to any person or property. Without limiting the generality of the foregoing, no firearms shall be discharged upon any portion of The Planned Community and no open fires shall be lighted or permitted on any portion of The Planned Community except in a contained barbecue unit while attended and in use for cooking purposes or within a fireplace designed to prevent the dispersal of burning embers.

7.9 No Unsightliness. All unsightly structures, facilities and equipment shall be enclosed within an approved structure except when actually in use.

No types of refrigerating, cooling or heating apparatus shall be permitted, except when appropriately screened and approved by the Committee.

7.10 Utilities. All electric, television, local area network (LAN) radio and telephone line installations and connections from the Owner's property line to the Dwelling Unit shall be placed underground. All types of refrigerating, cooling or heating apparatus must be concealed. All solar collector installations must be approved by the Committee prior to installation.

7.11 Restrictions on Signs and Advertising Devices. No sign, poster, billboard, advertising device or display of any kind shall be erected or maintained anywhere within The Planned Community except such signs as may be approved in writing by the Committee which may include signs indicating protection by Security Systems and Neighborhood Watch Programs. One sign advertising a Lot for sale or for lease may be placed on such Lot or Dwelling Unit; provided however, that standards relating to dimensions, color, style and location of such sign shall be determined from time to time by the Committee and shall comply with the local sign codes and with all other applicable statutes, ordinances and regulations.

Notwithstanding the foregoing, reasonable signs, advertising or billboards used by the Declarant in connection with development of or construction on the Lot, shall be permissible.

7.12 Compliance with Insurance Requirements. Except as may be approved in writing by the Board of Directors, nothing shall be done or kept on The Planned Community which may result in an increase in the rates of insurance or would result in the cancellation of any insurance maintained by the Association.

7.13 Compliance with Laws. No unlawful use shall be permitted or made of any Lot or any portion thereof. All laws, ordinances and regulations of all governmental bodies having jurisdiction over the Lots, or any portion thereof, shall be observed.

7.14 Restoration in the Event of Damage or Destruction. If due to casualty or for any other reason a Dwelling Unit located on a Lot shall be destroyed or so damaged that the Dwelling Unit is no longer habitable, then the Owner of such Lot shall, within a reasonable time not to exceed one hundred and twenty days after the event resulting in such damage or destruction, either commence and diligently pursue repair or reconstruction of the Dwelling Unit or demolish the same. Demolition of a Dwelling Unit shall include removal of any foundation slab, basement walls and floors, regrading the Lot to a level condition and the installation of such landscaping as may be required by the Committee pursuant to a plan submitted to the Committee by the Lot Owner of said Lot.

If the Lot Owner of a Lot does not either commence repair, reconstruction or demolition activities within a reasonable time as provided hereinabove and diligently pursue the same in conformance with plans approved by the Design Review Commitee, then the Association may, in its reasonable discretion, after providing the Notice and Hearing, enter upon the Lot for the purpose of demolishing the Dwelling Unit and landscape the Lot in conformance with approved plans. The cost related to such demolition and landscaping shall be levied against the Owner as an Individual Assessment in accordance with Paragraph 5.4 hereof.

7.15 Household Pets. No animals, livestock, birds, poultry, reptiles or insects of any kind, shall be raised, bred, kept or boarded in or on any portion of The Planned Community except with the express written permission of the Board of Directors; except that dogs, cats or other household animals may be kept thereon if they are not raised, bred or maintained for any commercial purpose, and are not kept in such number or in such manner as to create a nuisance or inconvenience to any residents of The Planned Community.

The Board of Directors shall have the right and authority to determine in its sole discretion that dogs, cats or other household pets are being kept for commercial purposes or are being kept in such number or in such manner as to be unreasonable or to create a nuisance, or that an Owner is otherwise in violation of the provisions of this Paragraph. The Directors shall take such action or actions as it deems reasonably necessary to correct the violation to include after Notice and Hearing, directing permanent removal of the pet or pets from The Planned Community.

Household pets shall not be allowed to run at large within The Planned Community, but shall at all times be under the control of such pet's Owner and such pets shall not be allowed to litter the Common Areas and any other real property which the Association has an obligation to repair, maintain and/or reconstruct. Dogs shall be on leashes while in the Common Areas.

Reimbursement for damages caused by such pets and costs incurred by the Association, to include attorneys' fees and costs, in the removal of a pet or pets from The Planned Community or incurred by the Association in cleanup after such pets may be levied after Notice and Hearing against such pet's Owner as an Individual Assessment in accordance with Paragraph 5.4(d) hereof.

No dog runs or animal pens of any kind shall be permitted on any Lot except with the prior written approval of the Committee.


7.16 Vehicular Parking, Storage and Maintenance. No house trailer, camping trailer, horse trailer, camper, camper shells, boat trailer, hauling trailer, boat or boat accessories, truck larger than one ton, recreational vehicle or equipment, mobile home, or commercial vehicle may be parked or stored anywhere within The Planned Community unless it is parked in a Garage, Carport or Parking Space for no longer than two weeks unless otherwise approved by the Board of Directors. This applies to vehicles referred to above even if they are licensed by the State of Colorado or any other jurisdiction as "passenger vehicles". No emergency or temporary parking or storage shall continue for more than fourteen days.

Automobile and/or Truck parking will be subject to regulations and restrictions by the Board of Directors. Parking is not allowed on landscaped or lawn areas.

No abandoned, unlicensed, wrecked or inoperable vehicles of any kind shall be stored or parked within The Planned Community except in garages or except in emergencies. Any "abandoned or inoperable vehicle" shall be defined as any of the vehicles listed above or any other kind of passenger vehicle which has not been driven under its own propulsion for a period of two weeks or longer, or which does not have installed within it an operable propulsion system; provided however, that any vehicle belonging to any Owner which is otherwise permitted will not be deemed to be abandoned while the Owner is ill or out of town. The Board of Directors shall have the right to remove and store a vehicle in violation of this Paragraph after Notice and Hearing, the expenses of which shall be levied against the Owner of the vehicle as an Individual Assessment in accordance with Paragraph 5.4(d) hereof.

Vehicle maintenance is allowed within The Planned Community provided it shall not last more than two weeks, unless it is in the Garage.

7.17 Owner Caused Damages. If, due to the act or neglect of an Owner or such Owner's Guests, loss or damage shall be caused to any person or property within the Common Areas and any other real property which the Association has an obligation to repair, maintain and/or reconstruct, such Owner shall be liable and responsible for the payment of same. The amount of such loss or damage, together with costs of collection and reasonable attorney's fees, if necessary, may be collected by the Board of Directors after Notice and Hearing, from such Owner as an Individual Assessment against such Owner in accordance with Paragraph 5.4(d) hereof.

Determination with respect to whether or not a particular activity or occurrence shall constitute a violation of this Paragraph 7.17 shall be made by the Board of Directors and shall be final.

7.18 Antennas. No exterior radio antenna, television antenna or other antenna, satellite dish, or audio or visual reception device of any type shall be placed, erected or maintained on any Lot; except inside a residence or with the written approval of the Committee.

7.19 Lease of a Dwelling Unit. With the exception of a First Mortgagee who has acquired title to a Lot by virtue of foreclosing a first mortgage or by virtue of a deed in lieu of foreclosure, an Owner shall have the right to lease his or her Dwelling Unit upon such terms and conditions as the Owner may deem advisable, subject to the following:

(a) Any such lease or rental agreement shall be in writing and shall provide that the lease or rental agreement is subject to the terms of this Declaration, the Articles, Bylaws and Rules and Regulations of the Association;

(b) Such lease or rental agreement shall state that the failure of the lessee or renter to comply with the terms of the Declaration or Bylaws of the Association, Articles of Incorporation or the Rules and Regulations of the Association shall constitute a default and such default shall be enforceable by either the Board of Directors or the lessor, or by both of them;

(c) The Board of Directors shall be entitled to a copy of any lease or rental agreement upon its request.

7.20 Rules. Every Owner and his or her Guests shall adhere strictly to the Rules as promulgated by the Board of Directors, as amended from time to time.

7.21 Use of the Garages. The Board of Directors shall have the authority to establish reasonable rules and regulations regarding the sightliness and cleanliness of the Garages and Carports and the use thereof by its Owner.

It was the intent of the Declarant in designing the overall parking plan for The Planned Community that Garages be used in such a manner so that the Owner's vehicles could be parked within such space. Therefore, any use of a Garage that does not allow the Owner's vehicles to be parked within such space is expressly prohibited. The Board of Directors is granted the authority to enforce the provisions of this Paragraph by the levy of Fines against the Owner in accordance with Paragraph 5.6(e) hereof.

7.22 Waiver of Summary Abatement. The Declarant and the Association waives the right to use summary abatement or similar means to enforce the restrictions herein contained. Judicial proceedings must be instituted before any items of construction can be altered or demolished.

7.23 Party Walls. The Owner shall possess, in fee simple, that portion of the Party Wall, as defined herein, lying within his or her Lot. Each Owner having a Party Wall is hereby granted a mutual reciprocal easement for repair or replacement of said Party Wall. No Owner shall commit or omit any act, the result of which is infringement of the adjoining Owner's rights in the Party Wall absent written agreement between such Owners.

In the event that any portion of any structure originally constructed by Declarant, including any Party Wall, shall protrude over an adjoining Lot, such structure shall not be deemed to be an encroachment upon the adjoining Lot nor shall any action be maintained for the removal of or for damage because of such protrusion. The foregoing shall also apply to any replacements of any Party Wall if the same are constructed substantially in conformity with the original Party Wall constructed by Declarant.

If a Party Wall is in need of repair or is destroyed or damaged by any casualty, the Owners of Lots abutting such Party Wall jointly shall repair, restore or reconstruct it substantially to its original form, and they shall contribute in proportion to such Owner's use of such Party Wall to the cost of repair, restoration or reconstruction thereof without the prejudice, however, to the right of any such Owner to call for a larger contribution from any other Owner under any rules of law regarding liability for negligent or willful acts or omissions.

Notwithstanding any other provision of this Article, an Owner who by his or her 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. The right of any Owner to any contribution from any such Owner under this Article shall be appurtenant to the land and shall pass to such Owner`s successors in title; provided however, the right of such Owner to any contribution shall in any event be subordinate to the First Mortgagees of any Lots.

Destruction or damage to the Party Wall shall not cause the termination of any rights of any of the adjoining Owners thereto, and such Owners will retain those rights herein set forth concerning any reconstruction or replacement of a Party Wall.

7.24 Exemptions for the Declarant. The Declarant shall be exempt from the provisions of this ARTICLE SEVEN to the extent that it impedes Declarant's development, construction, marketing, sales, or leasing activities.



ARTICLE EIGHT: EASEMENTS

8.1 Utility Easements. Easements for utilities over and across the Common Areas shall be those shown upon the Plat of The Planned Community, and such other easements as may be established pursuant to the provisions of this Declaration.

8.2 Easements for the Board of Directors. Each Lot shall be subject to an easement in favor of the Board of Directors (including its agents, employees and contractors) to perform its obligations pursuant to this Declaration.

8.3 Emergency Easements. A nonexclusive easement for ingress and egress is hereby granted to all police, sheriff, fire protection, ambulance, and other similar emergency agencies or persons, now or hereafter servicing The Planned Community, to enter upon any part of The Planned Community in the performance of their duties.

8.4 Owner's Easement for Access. Each Owner shall have a nonexclusive easement for access between his or her Dwelling Unit and the streets within and adjacent to The Planned Community. There shall be no restrictions upon any Owner's right of ingress and egress to or from such Owners' Dwelling Unit. Such easement shall extend for whatever period of time the need for access shall exist.

8.5 Easements for Encroachments. If any part of the Common Areas encroaches or shall hereafter encroach upon a Dwelling Unit, an easement for such encroachment and for the maintenance of the same shall and does exist. If any part of a Dwelling Unit encroaches or shall hereafter encroach upon the Common Areas, or upon another Dwelling Unit, the Owner of that Dwelling Unit shall and does have an easement for such encroachment and for the maintenance of same.

Such easements shall extend for whatever period of time the encroachment shall exist. Such encroachments shall not be considered to be encumbrances either upon the Common Areas or upon a Dwelling Unit. Encroachments referred to herein include, but are not limited to, encroachments made by error in original construction of the Dwelling Unit, by settling, rising or shifting of the earth, or by changes in position caused by repair or reconstruction of Dwelling Units within The Planned Community or any part thereof.

8.6 Water and Sewer Line Easements. Water and sewer lines may run through a portion of certain Dwelling Units within The Planned Community. If such shall be the case, an easement for the said lines and for the maintenance of same shall and does exist. Such easement shall extend for whatever period of time the lines shall exist.

All Owners shall permit a right of entry to the Board of Directors or its agents, whether the Owner is present or not, for access through the Dwelling Unit to the said water and sewer lines, from time to time, as may be necessary for the routine maintenance, repair, reconstruction, for making emergency repairs necessary to prevent damage to the Dwelling Units, and for the installation, reading and maintaining of flow meters, if installed.

For routine maintenance and non-emergency repairs, entry shall be made only on a regular business day during regular business hours, after service of at least one day's notice in writing to the Owner. In case of emergency, entry shall be made at any time provided that a reasonable effort according to the circumstances is made to give notice of entry.

The Board of Directors or its agents is granted the authority to use such reasonable force as is necessary to gain entry into a Dwelling Unit in the event of an emergency, if no other means of entry are available in view of the circumstances. The Association shall bear the full responsibility and expense of all damages incurred to the Dwelling Unit because of such forcible entry.

All damage to the interior or any part of a Dwelling Unit resulting from the maintenance, repair, emergency repair or replacement of any of the said lines, at the instance of the Association, shall be paid for as part of the Common Expense Assessment by all of the Owners. Restoration of the damaged improvements shall be substantially the same as the condition in which they existed prior to damage.

8.7 Local Area Network. There is located within the Planned Community a Local Area Network connecting each Lot within the Planned Community with its cable located within the utility easements. This Local Area Network shall be owned and maintained by the Association.

8.8 Easements Deemed Appurtenant. The easements and rights herein created for an Owner shall be deemed appurtenant to the Lots owned by such Owner. All conveyances and instruments affecting title to a Lot shall be deemed to grant and reserve the easements and rights of way as provided herein, as though set forth in said document in full, even though no specific reference to such easements or rights of way appear.



ARTICLE NINE: DEVELOPMENT RIGHTS AND SPECIAL DECLARANT RIGHTS

9.1 Reservation. The Declarant reserves the following Development Rights and Special Declarant Rights ("Declarant Rights") which may be exercised, where applicable, anywhere within The Planned Community:

(a) To complete the improvements indicated on the Plat;

(b) To exercise any Declarant Rights reserved herein;

(c) To maintain business/sales offices, parking spaces, management offices, storage areas, nursery, construction yard, signs, advertising and model Dwelling Units;

(d) To maintain signs and advertising in the Common Areas to advertise The Planned Community;

(e) To use, and to permit others to use, easements through the Common Areas as may be reasonably necessary for construction within The Planned Community and for the purpose of discharging the Declarant's obligations under the Act and this Declaration;

(f) To enlarge, without in any way being bound, The Planned Community in phases from time to time, by adding to The Planned Community any of the real property described in Exhibit C attached hereto, in accordance with ARTICLE TWELVE hereof;

(g) To merge or consolidate The Planned Community with another Planned Community or subject it to a Master Association;

(h) To appoint or remove any officer of the Association or a member of the Board of Directors during of Period of Declarant Control subject to the provisions of Paragraph 4.7 of this Declaration;

(i) To amend the Declaration and/or the Plat in connection with the exercise of any Declarant Rights; and

(j) To exercise any other Declarant Right created by any other provisions of this Declaration.

9.2 Rights Transferable. Declarant Rights created or reserved under this Article for the benefit of Declarant may be transferred to any Person by an instrument describing the Rights transferred and recorded in Larimer County, Colorado. Such instrument shall be executed by the transferor Declarant and the transferee.

9.3 Limitations. The Declarant Rights shall terminate at the option of the Declarant by its written notice to the Secretary of the Association, but in any event such Rights shall terminate without further act or deed five years after the date of the recording of this Declaration.

Not more than twenty-three additional Lots may be created under the Development Rights, or the maximum number of Lots allowed by any governmental entity having jurisdiction over The Planned Community, pursuant to any development plan for The Planned Community and Declarant shall not be obligated to expand The Planned Community beyond the number of Lots initially submitted to this Declaration.

9.4 Interference with the Declarant Rights. Neither the Association, the Board of Directors nor any Owner may take any action or adopt any rule that will interfere with or diminish Declarant Rights without the prior written consent of the Declarant.

9.5 Use by Declarant. The exercise of the Declarant Rights by Declarant shall not unreasonably interfere with the access, enjoyment or use of any Lot by any Owner nor the access, enjoyment or use of the Common Areas; nor shall any activity be conducted which might be unsafe, unhealthy, or hazardous to any person.

9.6 Models, Sales Offices and Management Offices. Subject to the limitations set forth in Paragraph 9.3 hereof, the Declarant its duly authorized agents, representatives and employees may maintain any Dwelling Unit owned by the Declarant as a model Dwelling Unit, sales, leasing or management office.

9.7 Declarant's Easements. The Declarant reserves the right to perform warranty work, and repairs and construction work on Lots, Dwelling Units and Common Areas, to store materials in secure areas, and to control and have the right of access to work and repair until completion. All work shall be performed by the Declarant without the consent or approval of the Board of Directors.

The Declarant has an easement through the Common Areas as may be reasonably necessary for the purpose of discharging the Declarant's obligations or exercising of the Declarant Rights, whether arising under the Act or reserved in this Article.

9.8 Signs and Marketing. The Declarant reserves the right for Declarant to post signs and displays on the Common Areas in order to promote sales of Lots and Dwelling Units. Declarant also reserves the right for Declarant to conduct general sales activities in a manner which will not unreasonably disturb the rights of Owners.

9.9 Declarant's Personal Property. The Declarant reserves the right to retain all personal property and equipment used in the sales, management, construction and maintenance of the Common Areas that has not been represented as property of the Association. The Declarant reserves the right to remove from The Planned Community (promptly after the sale of the last Lot or Dwelling Unit) any and all goods and improvements used in development, marketing and construction, whether or not they have become fixtures.

9.10 Rights of First Mortgagees. Additional limitations on the right of the Declarant to exercise Declarant Rights may be found in ARTICLE TWELVE hereof.



ARTICLE TEN: INSURANCE

10.1 Authority to Purchase/General Requirements. Except as provided below, all insurance policies relating to Dwelling Units and Common Areas within The Planned Community shall be purchased by the Board of Directors. The Board of Directors shall promptly furnish to each Owner and/or such Owner's First Mortgagee requesting same, written notice of the procurement of, subsequent changes in, or termination of, insurance coverages obtained on behalf of the Association.

EACH OWNER MUST OBTAIN INSURANCE COVERAGE FOR ALL OF SUCH OWNER'S PERSONAL PROPERTY, HOUSEHOLD GOODS AND FURNITURE LOCATED WITHIN THE DWELLING UNIT TOGETHER WITH PERSONAL LIABILITY COVERAGE TO COVER ACTS OR OCCURRENCES WITHIN THE DWELLING UNIT OR OCCURRENCES ON SUCH OWNER'S LOT. THE ASSOCIATION WILL NOT PROVIDE SUCH COVERAGES IN ITS MASTER POLICIES.

THE OWNER OF AN OWNER-OCCUPIED DWELLING UNIT SHOULD PURCHASE A CONDOMINIUM UNIT OWNERS POLICY (HO-6) OR ITS EQUIVALENT. THE OWNER OF A NON-OWNER-OCCUPIED DWELLING UNIT SHOULD PURCHASE A CONDOMINIUM OWNERS RENTAL LIABILITY POLICY OR ITS EQUIVALENT.

The Board of Directors shall not obtain any policy where (a) under the terms of the insurance company's charter, bylaws, or policy, contributions or assessments may be made against the Association, Owner, First Mortgagee or such First Mortgagee's successor and assigns, or (b) by the terms of carrier's charter, bylaws or policy, loss payments are contingent upon action by the carrier's Board of Directors, policyholders or members; or (c) the policy includes any limited clauses (other than insurance conditions) which could prevent Owners or First Mortgagees, their successors and assigns from collecting insurance proceeds.

Each such policy shall provide that:

a) The insurer to the extent possible waives any right to claim by way of subrogation against the Declarant, the Association, the Board of Directors, the Managing Agent or the Owners, and their respective agents, employees,Guests and, in the case of the Owners, the members of their households.

b) Such policy shall not be cancelled, invalidated or suspended due to the conduct of any Owner or his or her Guests or of any Member, officer or employee of the Board of Directors or the Managing Agent without a prior demand in writing that the Board or the Managing Agent cure the defect and neither shall have so cured such defect within forty-five days after such demand;

c) Such policy, including any fidelity insurance of the Association referred to in Paragraph 10.6 hereof may not be cancelled, or substantially modified by any party (including cancellation for nonpayment of premium) without at least thirty days' prior written notice to the Board of Directors, the Managing Agent and to each First Mortgagee listed as a scheduled holder of a first mortgage in the policy;

d) Such policy must provide that no assessment may be made against a First Mortgagee, its successors or assigns and that any assessment made against others shall not become a lien on a Lot superior to the lien of a First Mortgagee;

e) The Declarant, so long as Declarant shall own any Lot, shall be protected by all such policies as an Owner, if such coverage is available;

All policies of insurance shall be written by reputable companies duly authorized and licensed to do business in the State of Colorado with an A.M. Best's rating of "A" or better.

All insurance policies shall contain the standard mortgagee clause or equivalent endorsement (without contribution) in which it appropriately names the First Mortgagee in the policy, its successors and assigns, beneficiary.

10.2 Hazard Insurance. The Board of Directors shall obtain and maintain a blanket, "all-risk" form policy of hazard insurance with extended coverage, sprinkler leakage (if applicable), debris removal, insuring all the Dwelling Units located upon The Planned Community, all insurable improvements located on The Common Areas including fixtures, machinery, equipment and supplies maintained for the service of the Common Areas as well as common personal property and supplies and other personal property belonging to the Association; including fixtures and building service equipment to the extent that they are part of the Common Areas.

Such insurance shall also include, among other things, all fixtures, installations or additions comprising a part of the individual Dwelling Units within the unfinished interior surfaces of the perimeter walls, floors, and ceilings of the Dwelling Unit initially installed or replacements thereof made in accordance with the original plans and specifications, or installed by or at the expense of the Owner. All references herein to a "BLANKET" type policy of property insurance, are intended to denote "SINGLE ENTITY" insurance coverage.

In addition, any fixtures, equipment or other property within a Dwelling Unit which are to be financed by a First Mortgagee must be covered in such "blanket" policy.

Such insurance shall at all times represent one hundred percent of the current replacement cost based on the most recent appraisal of each Dwelling Unit and all insurable improvements in the Common Areas. The current replacement cost shall not include values for land, foundation, excavation and other items normally excluded therefrom and shall be without deduction for depreciation and with no provision for co-insurance. If available, the Master Policy shall be endorsed with a "Guaranteed Replacement Cost Endorsement".

The Board of Directors shall review at least annually all of its insurance policies in order to insure that the coverages contained in the policies are sufficient. The Board of Directors shall consistent with good business practices, and at reasonable intervals obtain a written appraisal for insurance purposes, showing that the insurance represents one hundred percent of the current replacement cost as defined above for all of the Dwelling Units located upon The Planned Community and all insurable improvements located on the Common Areas, together with any personal property owned by the Association.

Such policies shall also provide:

a) The following endorsements or their equivalent: No Control Endorsement, Contingent Liability from Operation of Building Laws or Codes Endorsement, Cost of Demolition Endorsement, Increased Cost of Construction Endorsement) Agreed Amount Endorsement, and Inflation Guard Endorsement, if available.

b) That any "no other insurance" clause expressly exclude individual Owners' policies from its operation so that the property insurance policy purchased by the Board of Directors shall be deemed primary coverage and any individual Owners' policies shall be deemed excess coverage, and in no event shall the insurance coverage obtained and maintained by the Board of Directors hereunder provide for or be brought into contribution with insurance purchased by individual Owners or their First Mortgagees, unless otherwise required by law.

A certificate, together with proof of payment of premiums, shall be delivered by the insurer to any Owner or First Mortgagee requesting the same, at least thirty days prior to expiration of the then current policy.

The insurance shall be carried naming the Association as the owner and beneficiary thereof for the use and benefit of the individual Owners and shall provide a standard noncontributory mortgage clause in favor of each First Mortgagee. Any loss covered by the policies carried under this Article shall be adjusted exclusively by the Board of Directors and provide that all claims are to be settled on a replacement cost basis.

The Association shall hold any insurance proceeds received in trust for the Owners and their First Mortgagees as their interests may appear. The proceeds shall be disbursed first for the repair or restoration of the damaged Common Areas and Dwelling Units. Owners and First Mortgagees are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the Common Areas and Dwelling Units have been repaired or restored.

Title to each Lot within The Planned Community is declared and expressly made subject to the terms and conditions hereto, and acceptance by the grantee of a deed or other instrument of conveyance from the Declarant or from any Owner shall constitute appointment of the attorney-in-fact herein provided. All of the Owners constitute and appoint the Association their true and lawful attorney in their name, place and stead for the purpose of dealing with their Dwelling Units upon its damage or destruction as is hereinafter provided.

As attorney-in-fact, the Board of Directors of the Association shall have full and complete authorization, power and right to make, execute and deliver any contract or any other instrument with respect to the interest of such Dwelling Unit which is necessary and appropriate to exercise the powers herein granted. Repair and reconstruction of the damaged Dwelling Units and Common Areas shall be done in accordance with Paragraphs 10.3 an 10.4 below.

Such appointment of the Association as the attorney-in-fact for all Owners may be revoked and a new attorney-in-fact appointed by an amendment to this Declaration in accordance with Paragraph 15.2 hereof.

The deductible, if any, on such insurance policy shall be as the Directors determine to be consistent with good business practice and which shall be consistent with the requirements of the First Mortgagees, not to exceed, however, Ten Thousand Dollars or one percent of the face amount of the policy whichever is less. Any loss falling within the deductible portion of a policy shall be paid by the Association. Funds to cover the deductible amounts shall be included in the Association's Reserve Funds and be so designated. The Board shall have the authority to levy, after Notice and Hearing, against Owners causing such loss for the reimbursement of all deductibles paid by the Association as an Individual Assessment in accordance with Paragraph 5.4(d) hereof.

10.3 Liability Insurance. The Board of Directors shall obtain and maintain comprehensive general liability (including eviction, libel, slander, false arrest and invasion of privacy) and property damage insurance covering all of the Common Areas, public ways within The Planned Community and any other areas that are under the Association's responsibility and commercial spaces owned by the Association whether or not they are leased to some third party insuring each officer, director, the Managing Agent and the Association.

Such coverage under this policy shall include, without limitation, the legal liability of the insureds for property damage, bodily injuries and deaths of persons that result from the operation, maintenance or use of the Common Areas and the legal liability arising out of lawsuits relating to employment contracts in which the Association is a party.

Such insurance shall be issued on a comprehensive liability basis. Additional coverages may be required to include protection against such other risks as are customarily covered with respect to The Planned Community similar in construction, location and use, including, but not limited to, Host Liquor Liability coverage with respect to events sponsored by the Association, Workmen's Compensation and Employer's Liability Insurance, Comprehensive Automobile Liability Insurance, and Severability of Interest Endorsement.

IN THE EVENT THE ASSOCIATION HOSTS A FUNCTION AND CHARGES FOR FOOD OR DRINK AND LIQUOR IS SERVED, THERE WILL BE NO HOST LIQUOR LIABILITY COVERAGE FOR THE ASSOCIATION. IF MONEY IS CHARGED, A LIQUOR LIABILITY POLICY WOULD BE NEEDED TO GIVE COVERAGE TO THE ASSOCIATION.

The Board of Directors shall review such limits once each year, but in no event shall such insurance be less than one million dollars covering all claims for bodily injury, including deaths of persons and property damage arising out of a single occurrence. Reasonable amounts of "umbrella" liability insurance in excess of the primary limits may also be obtained.

10.4 Fidelity Insurance. The Association shall obtain and maintain, to the extent reasonably available, fidelity insurance coverage for any Owner or Association employee who either handles or is responsible for funds held or administered by the Association. The insurance shall name the Association as insured, and shall contain waivers of any defense based upon the exclusion of persons who serve without compensation from any definition of "employee" or similar expression.

The fidelity insurance policy should cover the maximum funds (including Reserve Funds) that will be in the custody of the Association or its management agent at any time while the policy is in force.

The policy must include a provision that calls for ten days' written notice to the Association before the policy can be cancelled or substantially modified for any reason. The same notice must also be given to each servicer that services a Fannie Mae-owned or securitized mortgage in The Planned Community.

A management agent that handles funds for the Association should be covered by its own fidelity insurance policy which must provide the same coverage required of the Association.

10.5 Additional Insurance.

a) If the area where The Planned Community is located has been identified by the Secretary of Housing and Urban Development (HUD) or the Director of the Federal Emergency Management Agency (FEMA) as a Special Flood Hazard Area, flood insurance for The Planned Community shall be maintained providing coverage equivalent to that provided under the National Flood Insurance Program in an amount of one hundred percent of The Planned Community's current replacement cost.

The Association must also maintain coverage for all Dwelling Units and all insurable improvements located upon the Common Areas for one hundred percent of their replacement cost as defined above. A separate Association endorsement is required if not already a part of the policy.

Deductibles may not exceed the lower of Five Thousand Dollars or one percent of the face amount of the coverage. Funds for such deductibles must be included in the Association's Reserve and be so designated.

If The Planned Community at the time of the recording of this Declaration are not identified as a Special Flood Hazard Area but become reclassified at a later date as such and the Board of Directors shall obtain flood insurance for The Planned Community in accordance with the above. Conversely, flood insurance may be discontinued under certain conditions if the Planned Community is removed from the Flood Plain.

b) Adequate Directors and Officers liability insurance, if available, and if deemed consistent with good business practices, for errors and omissions on all Directors and Officers to be written in an amount which the Board of Directors deems adequate;

c) Workmen's Compensation and Employer's Liability Insurance and all other similar insurance with respect to employees of the Association in the amount and in the forms now or hereafter acquired by law;

d) Such other insurance of a similar or dissimilar nature, as the Board of Directors shall deem appropriate with respect to The Planned Community;

e) If it is determined by a First Mortgagee that the existing coverages do not adequately protect The Planned Community, the Board of Directors shall obtain such additional coverages.

10.6 Payment of Insurance Premiums. The cost of the insurance obtained by the Association in accordance with this Article, except (a) the insurance referred to in Paragraph 10.2 hereof pertaining to the Blanket "All-Risk" Policy insuring all of the Dwelling Units and insurable improvements to the Common Areas, which is paid for by an Insurance Assessment in accordance with Paragraph 5.4(c) hereof, and (b) except for premiums on fidelity insurance maintained by a Managing Agent for its officers, employees and agents shall be paid from Association funds and shall be collected from the Owners as part of the Common Expense Assessment as provided for in Paragraph 5.4(a) hereof.

In the event there are not sufficient funds generated from the Common Expense Assessment to cover the cost of the insurance provided for above, then the deficiency shall be chargeable to each Owner by an Individual Assessment in accordance with Paragraph 5.4(d) hereof and such assessment shall be exempt from any special voting requirements of the Membership. Such assessment shall be prorated among Owners in the same proportion as the Annual Assessment for Common Expenses.

10.7 Separate Insurance. No Owner shall be entitled to exercise his or her right to acquire or maintain such insurance coverage so as to decrease the amount which the Board of Directors, on behalf of all Owners, may realize under any insurance policy maintained by the Board or to cause any insurance coverage maintained by the Board to be brought into contribution with insurance coverage obtained by an Owner. All such policies shall contain waivers of subrogation. No Owner shall obtain separate insurance policies except as provided in this Paragraph.

10.8 Condemnation. If an entire Lot is acquired by condemnation or if a part of Lot is acquired by condemnation leaving the Owner with a remnant which may not practically or lawfully be used for any purpose permitted by the Declaration, the award must include compensation to the Owner for that Lot and its Dwelling Unit.

If a part of the Common Areas are acquired by condemnation, that portion of any award attributable to the Common Areas taken must be paid to the Association.



ARTICLE ELEVEN: RESTORATION UPON DAMAGE OR DESTRUCTION

11.1 Duty to Restore. Any portion of The Planned Community for which insurance is required under the Act or for which insurance carried by the Association is in effect that is damaged or destroy-ed must be repaired or replaced promptly by the Association unless:

(a) The Planned Community is terminated;

(b) repair or replacement would be illegal under a state statute or municipal ordinance governing health or safety;

(c) Owners of Lots to which at least sixty-seven percent of the votes in the Association are allocated, including every Owner of a Dwelling Unit that will not be rebuilt, vote not to rebuild.

In the event The Planned Community is not repaired or reconstructed in accordance with the above, The Planned Community shall be sold and the proceeds distributed pursuant to the procedures provided for in the Act for termination of a Planned Community.

11.2 Plans/Cost. The Property must be repaired and restored in accordance with either the original plans and specifications or other plans and specifications which have been approved by the Board of Directors and by Owners of Lots to which at least sixty-seven percent of the votes in the Association are allocated. The cost of repair or reconstruction in excess of insurance proceeds and reserves is a Common Expense.

11.3 Reconstruction of Less Than the Entire Planned Community. If the entire Planned Community is not repaired or reconstructed, the insurance proceeds attributable to the damaged Planned Community shall be used to restore the damaged area to a condition compatible with the remainder of The Planned Community, and:

(a) the insurance proceeds attributable to a Dwelling Unit that is not reconstructed must be distributed to the Owner of that Dwelling Unit and to the holders of Security Interests, as their interest may appear; and

(b) the remainder of the proceeds must be distributed to each Owner and holders of Security Interests, as their interests may appear, in accordance with each Owner's Common Expense Assessment liability set forth in Paragraph 1.3 hereof.



ARTICLE TWELVE: MAINTENANCE

12.1 Maintenance of the Common Areas. The Association shall provide for the repair, maintenance and/or reconstruction of the Common Areas. Without limiting the generality of the foregoing and by way of illustration, the Association shall keep said Common Areas safe, attractive, clean, functional and in good repair and may make necessary or desirable alterations or improvements thereon.

In the event such repair, maintenance and/or reconstruction is resulting from the willful neglect or destruction by an Owner or such Owner's Guest, the Board of Directors shall have the right, after Notice and Hearing, to repair, maintain and/or reconstruct said Common Areas. The cost of such maintenance, repair and/or reconstruction shall be chargeable to such Owner by an Individual Assessment in accordance with Paragraph 5.4(d) hereof.

Determination with respect to whether or not a particular activity by occurrence shall constitute a violation of this Paragraph 12.1 shall be made by the Board of Directors and shall be final.

12.2 Exterior Maintenance of Dwelling Units. To provide and maintain exterior harmony for all Dwelling Units constructed on Lots within The Planned Community, the Association shall repair, maintain and reconstruct the exterior of such Dwelling Units to include but not be limited to the painting, repairing, reconstructing and maintaining of the roofs, gutters, downspouts and exterior building surfaces.

Such maintenance shall not include the maintenance, repair or reconstruction of patios, decks, glass in doors, windows or window frames and hardware or screened surfaces, door or door frames and hardware, all of which shall be the sole responsibility of the Dwelling Unit's Owner.

The maintenance obligation on the part of the Association shall apply to such maintenance required by ordinary wear and tear and shall not apply to maintenance, repair or reconstruction resulting from willful neglect or destruction.

In the event such repair, maintenance and/or replacement is resulting from the willful neglect or destruction by an Owner or such Owner's Guest, as defined herein, the Board of Directors shall have the right, after Notice and Hearing, to charge the costs of such repair, maintenance and/or replacement, to such Owner by an Individual Assessment in accordance with Paragraph 5.4(d) hereof.

Determination of whether such repair or maintenance is the obligation of the Association, or if the Association's obligation is necessary, shall rest solely with the Board of Directors, which will also have the sole responsibility for determining the kind and type of materials used in such repair and maintenance.

All other Dwelling Unit maintenance and repair shall be the sole responsibility and at the sole expense of the Owner together with the maintenance of the landscaping within each Dwelling Unit's Lot.

12.3 Association Responsibility. Access to all of the Lots within The Planned Community to perform the said repair, maintenance and/or replacement by the Board of Directors, its agents and employees shall be made pursuant to the maintenance easement granted in accordance with Paragraph 8.2 hereof.

12.4 Maintenance of Drainage Pattern. There shall be no interference with the established drainage pattern initially established by the Declarant over any portion of The Planned Community, except as approved in writing by the Committee. Approval shall not be granted unless provision is made for adequate alternate drainage. The "established drainage pattern" shall mean the drainage pattern which exists at the time the overall grading of any property is completed by the Declarant and shall include any established drainage pattern shown on the plans approved by the said Committee. The established drainage pattern may include the drainage pattern from the Common Areas over any Lots within The Planned Community and from any Lot within The Planned Community over the Common Areas, or from any Lot over another Lot.

12.5 Special Maintenance Requirements. The Association shall be responsible for and pay the expense of the maintenance of the Common Areas until and unless such maintenance obligation is assumed by a government or quasi-governmental body.

In the event the Association shall fail to maintain the Common Areas in a reasonable order and condition in accordance with the original plan submitted to the Board of County Commissioners for Larimer County (the "Board") with the final subdivision Plat for The Planned Community, the Board may serve written notice upon the Association, or upon the Owners, setting forth the manner in which the Association has failed to maintain the Common Areas in a reasonable condition. Said notice shall include a demand that such deficiencies of maintenance be cured within thirty days thereof, and shall state the date and place of a hearing thereon. Said hearing to be held within fourteen days of the notice.

At such hearing, the Board may modify the terms of its original notice as to the deficiencies, and may give an extension of time within which they shall be cured. If the deficiencies set forth in the original notice or in the modification thereof are not cured within said thirty days, or any extension thereof, the Board, in order to preserve the taxable values of The Planned Community and to prevent the Common Areas from becoming a public nuisance and public liability, may undertake to maintain the same for a period of one year.

Before the expiration of said year, the Board, upon its initiative or upon the written request of the Association, shall call a public hearing upon notice to the Association and to the Owners, to be held by the Board, at which hearing such Association, or the Owners, shall show cause why such maintenance by the Board shall not, at the election of the Board, continue for a succeeding year. If the Board shall determine that the Association is ready and able to maintain the Common Areas in a reasonable condition, the Board shall cease to maintain the Common Areas at the end of said year. If the Board shall determine that the Association is not ready and able to maintain the Common Areas in a reasonable condition, the Board may, in its discretion, continue to maintain said Common Areas during the next succeeding year subject to a similar hearing and determination in each year thereafter.

The cost of such maintenance by the Board shall be paid by the Owners with each Lot within The Planned Community to bear an equal proportion of such costs. Any unpaid assessments shall become a tax lien upon the Lot owned by a defaulting Owner. The Board shall file a notice of such lien in the Office of the County Clerk and Recorder upon the Lot affected by such lien, and shall certify such unpaid assessments to the County Treasurer for collection, enforcement, and remittance in the manner provided by law for the collection, enforcement and remittance of general property taxes.

No amendment may be adopted which modifies the provisions or effect of the provisions of this Declaration, unless such amendment has been approved by the appropriate County officials.



ARTICLE THIRTEEN: EXPANSION

13.1 Reservation of Right to Expand. Declarant reserves the right (without in any way being bound) to enlarge The Planned Community in phases without the necessity of the consent thereto, or joinder therein, by the Owners or First Mortgagees, by submitting to The Planned Community from time to time a Supplemental Declaration adding any of the real property described in Exhibit C attached hereto.

13.2 Supplemental Declarations. Such expansion must be accomplished by the filing for record by Declarant in the office of the County Clerk and Recorder, a supplement or supplements to this Declaration containing the legal description of the new real property to be included in such expansion. The expansion may be accomplished in stages by successive supplements or in one supplemental expansion so long as each subsequent phase is contiguous to The Planned Community already subject to this Declaration.

13.3 Expansion of Definitions. In the event of such expansion, the definitions used in this Declaration shall be expanded. For example, "Lot" and "Common Areas" shall mean the Lots and Common Areas described hereinabove plus any additional Lots and Common Areas added by a Supplemental Declaration or Declarations, and reference to this Declaration shall mean this Declaration as supplemented. All conveyances of Lots shall be effective to transfer rights in The Planned Community as expanded with additional references to the Supplemental Declaration.

13.4 Declaration Operative on New Properties. The new Real Property shall be subject to all the terms and conditions of this Declaration as amended or supplemented, upon placing the Supplemental Declaration or Declarations of public record in the County real estate records.

13.5 Interests on Enlargement. An Owner at the time of his or her purchase of a Lot which has been brought into The Planned Community by a Supplemental Declaration shall be a member of the Association. Such Owner shall be entitled to the same non-exclusive use of the Common Areas and the same voting privileges as the Owners of the initial property brought into The Planned Community through this original Declaration and shall be subject to the same Assessments. Such Assessments to commence in accordance with Paragraph 5.3 hereof.

13.6 Taxes, Assessments and Other Liens. All taxes and other assessments relating to the real property described in Exhibit C covering any period of time prior to the addition of such property or any portion thereof to The Planned Community must be paid.

Liens arising out of the construction of improvements in later phases shall not extend into prior phases and shall not adversely affect the rights of Owners or the priority of first mortgages and deeds of trust on any Lot in a prior phase.

13.7 Project Treated as a Whole. For all purposes hereof, each of the Phases of The Planned Community after the recording of the Supplemental Declaration submitting each Phase to The Planned Community, shall be treated as a part of The Planned Community developed as a whole from the beginning. It is the express purpose hereof to provide that from and after the date of the submission of a Phase of The Planned Community in accordance with the above, that such Phase shall be treated as though such Phase had been developed, owned, occupied and used by the Owners thereof as a single undivided Development.

13.8 Termination of the Right of Expansion. The right of expansion shall terminate at the option of the Declarant by its written notice to the Secretary of the Association, but in any event such right of expansion shall terminate without further act or deed in accordance with the limitations set forth in Paragraph 9.3 hereof.



ARTICLE FOURTEEN: FIRST MORTGAGEE PROVISIONS

The following provisions are for the benefit of the First Mortgagees. To the extent applicable, necessary, or proper, the provisions of this ARTICLE FOURTEEN apply to both this Declaration and to the Articles and Bylaws of the Association.

14.1 Notices of Action. A First Mortgagee shall be entitled to timely written notice of:

(a) any material condemnation loss or any casualty loss which affects a material portion of The Planned Community or any Lot in which there is a first mortgage held by such Eligible Mortgagee;

(b) any delinquency in the payment of Common Expense Assessments owed by an Owner which remains uncured for a period of sixty days and whose Lot is subject to a mortgage held by such First Mortgagee;

(c) any lapse, cancellation, or material modification of any mandatory insurance policy or fidelity bond maintained by the Association;

(d) any material judgment rendered against the Association.

14.2 Amendment to Documents/Special Approvals.

(a) The consent of Owners to which at least sixty-seven percent of the votes in the Association are allocated and approval of at least fifty-one percent of the Eligible Mortgagees as defined herein shall be required to add to or amend any material provisions of this Declaration or the Articles or Bylaws of the Association. A change to any of the following would be considered material.

(i) voting rights;

(ii) increase in Assessments that raise the Assessment by more than 25% over the previously levied assessment, assessment liens, or the priority of assessment liens;

(iii) reduction in the reserves for maintenance, repair and replacement of the Common Areas;

(iv) responsibility for maintenance and repairs;

(v) reallocation of interests in the General or Limited Common Areas or rights to their use;


(vi) redefinition of any Lot boundaries;

(vii) convertibility of Lots into Common Areas or vice versa;

(viii) subject to the provisions of Paragraph 12.1 hereof, expansion or contraction of The Planned Community, or the addition, annexation or withdrawal of property to or from The Planned Community;

(ix) hazard or fidelity insurance requirements;

(x) imposition of any restrictions on the leasing of Lots;

(xi) imposition of any restrictions on a Lot Owner's right to sell or transfer his or her Lot;

(xii) restoration or repair of The Planned Community (after damage or partial condemnation) in a manner than that specified in the documents;

(xiii) any provision that expressly benefits mortgage holders, insurers or guarantors.

(b) The Association may not take any of the following actions without the consent of Owners to which at least sixty-seven percent of the votes in the Association are allocated and the approval of at least fifty-one percent of the Eligible Mortgagees.

(i) Reconstruct or repair The Planned Community after damage due to an insurable hazard or a partial condemnation in a manner other than specified in the Project Documents.

(ii) Merge The Planned Community with any other planned community.

(iii) Assign the future income of the Association, including its right to receive Common Expense Assessments.

(iv) Not repair or reconstruct, in the event of substantial destruction, any part of the Common Areas.

(v) Alter any partition or the creation of any aperture between adjoining Lots (when Lot boundaries are not otherwise being affected), for which only the owners of Lots affected and Eligible Mortgagees of those Lots need approve the action.

(c) Any action to terminate the legal status of The Planned Community after substantial destruction or condemnation occurs must be agreed to by Owners to which at least sixty-seven percent of the votes in the Association are allocated, and approval of at least fifty-one percent of the Eligible Mortgagees.

(d) Any action to terminate the legal status of The Planned Community for reasons other than substantial destruction or condemnation occurs must be agreed to by Owners to which at least sixty-seven percent of the votes in the Association are allocated and approval of at least sixty-seven percent of the Eligible Mortgagees.

14.3 Special FHLMC Provisions. Except as provided by statute in the case of a condemnation or a substantial loss to the Lots and/or Common Areas, unless at least two-thirds of the First Mortgagees or Owners (other than the Declarant) have given their prior written approval, the Association may not:

(a)  by act or omission seek to abandon or terminate The Planned Community;

(b)  change the pro rata interest or obligations of any Lot in order to levy assessments, allocate distribution of hazard insurance proceeds or condemnation awards or determine the pro rata share of ownership of each Lot in the Common Areas;

(c)  partition or subdivide any Lot;

(d)  seek to abandon, partition, subdivide, encumber, sell or transfer the Common Areas by act or omission.

The granting of easements for public utilities or other public purposes consistent with the intended use of the Common Areas is not a transfer within the meaning of this Paragraph 14.3(d).

(e)  use hazard insurance proceeds for losses to any portion of The Planned Community (whether Lots or Common Areas) for other than the repair, replacement or reconstruction of The Planned Community.

14.4 Implied Approval. Implied approval by an Eligible Mortgagee shall be assumed when an Eligible Mortgagee fails to submit a response to any written proposal for an amendment within thirty days after said Eligible Mortgagee receives proper notice of the proposal, provided this notice was delivered by certified or registered mail with return receipt requested.

14.5 Books and Records. Owners and their mortgagees shall have the right to examine the books and records of the Association at the office of the Association in accordance with the procedure set forth in the Association's Bylaws.



ARTICLE FIFTEEN: DURATION, AMENDMENT AND TERMINATION OF THE DECLARATION

15.1 Duration. The covenants, restrictions and obligations of this Declaration shall run with and bind the land in perpetuity until this Declaration is terminated in accordance with Paragraph 15.7 below.

15.2 Amendments by Owners. Except as permitted in Paragraph 16.5 hereof, and except in cases of amendments that may be executed by the Declarant pursuant to Paragraph 15.4 and except as restricted by Paragraphs 14.2, 14.3 and 15.5 hereof, this Declaration may be amended by the written agreement by Owners of Lots to which at least sixty-seven percent of the votes in the Association are allocated; provided, however, except as provided in ARTICLE THIRTEEN hereof, an amendment may not: (a) create or increase the Development Rights and/or Special Declarant Rights; (b) increase the number of Lots; (c) change the uses to which a Lot is restricted; or (d) change the Allocated Interests of a Lot except by unanimous consent of the Owners.

Any such amendment shall be effective upon the recording of the amendment together with a notarized Certificate of the Secretary of the Association certifying that the requisite number of Owners and First Mortgagees or Eligible Mortgagees, if required, have given their written consent to the amendment. The Secretary shall further certify that originals of such written consents by Owners and Mortgagees, as applicable, along with the recorded amendment, are in the records of the Association and available for inspection.

Each amendment to the Declaration must be recorded in accordance with § 38-33.3-217(3) of the Act.

Where a Lot is owned by more than one person, the execution of any amendment shall be valid if executed by any one Owner. Signatures need not be notarized. The signature need not be identical to the name of the recorded Owner, but shall be sufficiently close as to be identified as a proper signature of such person.

All signatures shall be irrevocable even upon death or conveyance of the Lot, except that if an amendment is not recorded within three years of the date of signature, then the executing Owner or their successor or assigns may revoke their signature by a written and notarized document delivered to the Secretary of the Association.

Amendments can be executed in counterparts, provided that such recorded document shall also contain a certification of the Secretary of the Association that all counterparts, as executed, are part of the whole.

No action shall be commenced or maintained to challenge the validity of any aspect of any amendment of the Association's Declaration, Articles of Incorporation or Bylaws unless it is commenced within one year from the effective date of said amendment, unless fraud or willful negligence is asserted and proven.

15.3 FHA/VA Approval. If The Planned Community has been or is to be approved by the Federal Housing Administration and/or the Veterans Administration, then until the termination of the Period of Declarant Control in accordance with Paragraph 4.7 hereof, the following actions will require the prior approval of the Federal Housing Administration and/or the Veterans Administration: annexa-tion of additional properties, amendment of this Declaration and the assessment of a Special Assessment.

15.4 Amendments by Declarant. Declarant reserves the right to amend, without the consent of Owners or Eligible Mortgagees, this Declaration, the Association's Articles of Incorporation or Bylaws, any time within the limitations set forth in Paragraph 9.3 hereof, as follows:

(a) To make nonmaterial changes, such as the correction of a technical, clerical, grammatical or typographical error or clarification of a statement.

(b) To comply with any requirements of any of the Agencies or to induce any of the Agencies to make, purchase, sell, insure or guarantee First Mortgages.

(c) To comply with any requirements of the Act.

15.5 Consent of Declarant Required. Notwithstanding any other provision in this Declaration to the contrary, any proposed amendment of any provision of this Declaration shall not be effective unless Declarant has given its written consent to such amendment, which consent shall be evidenced by the execution by Declarant of any certificate of amendment.

The foregoing requirement for consent of Declarant to any amendment shall terminate at the option of the Declarant by its written notice to the Secretary of the Association, but in any event, shall terminate without further act or deed in accordance with the limitations set forth in Paragraph 9.3 hereof.

15.6 Expenses. All expenses associated with preparing and recording an amendment shall be allocated in accordance with §38-33.3-217(6) of the Act.

15.7 Termination. Except in the case of a taking of all the Lots by condemnation, The Planned Community may be terminated only by agreement of Owners to which at least sixty-seven percent of the votes in the Association are allocated, as more fully set forth in §38-33.3-218 of the Act and the approval of at least sixty-seven percent of the Eligible Mortgagees.

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ARTICLE SIXTEEN: GENERAL PROVISIONS

16.1 Right of Action. The Association and any aggrieved Owner shall have an appropriate right of action against an Owner for such Owner's failure to comply with this Declaration, the Articles of Incorporation and Bylaws of the Association, the Rules and Regulations of the Association or with decisions of the Board of Directors which are made pursuant thereto. Owners shall have a similar right of action against the Association.

16.2 Successors and Assigns. This Declaration shall be binding upon and shall inure to the benefit of the Declarant, the Association and each Owner and their heirs, personal representatives, successors and assigns.

16.3 Severability. Any portion of this Declaration invalidated in any manner whatsoever shall not be deemed to affect in any manner the validity, enforceability or effect of the remainder of this Declaration, and in such event, all of the other provisions of this Declaration shall continue in full force and effect as if such invalid provision had never been included herein.

16.4 No Waiver. No provision contained in this Declaration shall be deemed to have been abrogated or waived by reason of any failure to enforce the same, irrespective of the number of violations or breaches which may occur.

16.5 Registration by Owner of Mailing Address. Each Owner shall register his or her mailing address with the Association, and except for monthly statements and other routine notices, which shall be personally delivered or sent by regular mail, all other notices or demands intended to be served upon an Owner shall be delivered personally or sent by either registered or certified mail, postage prepaid, addressed in the name of the Owner at such registered mailing address. All notices, demands or other notices intended to be served upon the Board of Directors of the Association or the Association shall be sent by certified mail, postage prepaid, to Bruce Richardson, c/o Wonderland Hill Development Company, 745 Poplar, Boulder, CO 80304, Registered Agent for the Association until the Registered Agent is changed by a notice duly filed with the Office of the Secretary of State of Colorado (Change of Registered Agent).

16.6 Conflict. The Project Documents are intended to comply with the requirements of the Act and the Colorado Nonprofit Corporation Act. If there is any conflict between the Project Documents and the provisions of the statutes, the provisions of the statutes shall control. In the event of any conflict between this Declaration and any other Project Documents, this Declaration shall control.

16.7 Mergers. The Planned Community may be merged or consolidated with another planned community of the same form of ownership by complying with § 38-33.3-221 of the Act.

16.8 Arbitration/Attorney's Fees. In the event of a dispute hereunder, the matter shall be submitted to binding arbitration through the American Arbitration Association or such other forum as may be agreed upon by the parties. The arbitrator(s) shall have authority as part of any award, and in the sound exercise of discretion, to award the party whose position is substantially favored, such party's costs and expenses including reasonable attorney's fees.

16.9 Captions. The captions and headings in this Declaration are for Convenience only, and shall not be considered in construing any provision of this Declaration.

16.10 Numbers and Genders. Whenever used herein, unless the context shall otherwise provide, the singular number shall include the plural, plural the singular, and the use of any gender shall include all genders.

16.11 Release. It is the intent of the Declarant that this DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF GREYROCK COMMONS, upon its recording, shall supersede in its entirety (a) the COVENANTS, CONDITIONS AND RESTRICTIONS recorded as Reception No. 93074432, and (b) THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF GREYROCK COMMONS, recorded as Reception No. 95032775, both recorded in in the Larimer County, Colorado records, thus making the said Declarations null, void and of no further force and effect.

IN WITNESS WHEREOF, the Declarant has caused this Declaration to be executed this ______ day of ___________________, 1996.

FORT COLLINS COHOUSING COMMUNITY

LIMITED LIABILITY COMPANY, a Colorado Limited Liability Company

By: __________________________________

Manager

STATE OF COLORADO )

                  ) ss.

COUNTY OF ______  )

The foregoing instrument was acknowledged before me this _____ day of _________________, 1996, by ___________________ as Manager of FORT COLLINS COHOUSING COMMUNITY LIMITED LIABILITY COMPANY, a Colorado limited liability company.

My commission expires:_______________________.

WITNESS my hand and official seal.

__________________________________

Notary Public



EXHIBIT A

TO THE DECLARATION OF COVENANTS,

CONDITIONS AND RESTRICTIONS

OF

THE GREYROCK COMMONS COMMUNITY

______________________________________________________________

LEGAL DESCRIPTION OF THE REAL PROPERTY

SUBMITTED TO THE DECLARATION OF COVENANTS,

CONDITIONS AND RESTRICTIONS OF

THE GREYROCK COMMONS COMMUNITY

(FIRST PHASE)

______________________________________________________________

Lots 24 through 30, Greyrock Commons P.U.D., a subdivision of the County of Larimer, State of Colorado.


EXHIBIT B

TO THE DECLARATION OF COVENANTS,

CONDITIONS AND RESTRICTIONS

OF

THE GREYROCK COMMONS COMMUNITY

______________________________________________________________

LEGAL DESCRIPTION OF THE COMMON AREAS

SUBMITTED TO THE DECLARATION OF COVENANTS,

CONDITIONS AND RESTRICTIONS OF

THE GREYROCK COMMONS COMMUNITY

(FIRST PHASE)

______________________________________________________________

Tracts B, C, D, E, K, M and N, Greyrock Commons P.U.D., a subdivision of the County of Larimer, State of Colorado.


EXHIBIT C

TO THE DECLARATION OF COVENANTS,

CONDITIONS AND RESTRICTIONS

OF

THE GREYROCK COMMONS COMMUNITY

______________________________________________________________

LEGAL DESCRIPTION OF THE REAL PROPERTY

WHICH MAY BE SUBMITTED TO THE DECLARATION OF COVENANTS,

CONDITIONS AND RESTRICTIONS OF

THE GREYROCK COMMONS COMMUNITY

IN LATER PHASES

______________________________________________________________

Lots 1 through 23, together with Tracts A, F, G, H, I J and L, Greyrock Commons P.U.D., a subdivision of the County of Larimer, State of Colorado.

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Page 1 of 2

EXHIBIT D

TO THE DECLARATION OF COVENANTS,

CONDITIONS AND RESTRICTIONS

OF

THE GREYROCK COMMONS COMMUNITY

_____________________________________________________________________________________________

TABLE OF INTERESTS

(FIRST PHASE)

 

 

Subject to the provisions of ARTICLE THIRTEEN hereof, each Lot in the Planned Community is subject to Assessment Liabilities as set forth below.

_____________________________________________________________________________________________

PERCENTAGE SHARE

COMMON EXPENSE       TOTAL        EXTERIOR MAINTENANCE     INSURANCE

LOT NO.     ASSESSMENT LIABILITY   SQ. FT.      ASSESSMENT LIABILITY     ASSESSMENT LIABILITY

 

24             l4.286%            2,180         15.237%            l5.237%

25             l4.286%            2,396         16.747%            16.747%

26             14.286%            1,702         ll.896%            1l.896%

27             14.286%            l,842         l2.875%            12.875%

28             l4.286%            2,414         16.873%            16.873%

29             l4.286%            1,377         9.625%              9.625%

30             14.286%            2,396         l6.747%            16.747%

100.00%           14,307         100.00%            100.00%

 

The Common Expense Assessment is levied against Lots on the basis of a fraction, the numerator of which is one and the denominator of which is the total number of Lots then within the Planned Community.


EXHIBIT E

TO THE DECLARATION OF COVENANTS,

CONDITIONS AND RESTRICTIONS

OF

THE GREYROCK COMMONS COMMUNITY

______________________________________________________________

SCHEDULE OF ASSESSMENT LIABILITY

(FIRST PHASE)

_________________________________________________________________

PER LOT CHARGES

Management & accounting

Insurance - Common Areas

Insurance - Directors/Officers, Fidelity

Legal and collection

Miscellaneous

Property taxes

Repairs and maintenance - parking spaces

Repairs and maintenance - landscape

Reserve for replacement - paving

Reserve for replacement - north firelane

Social

Snow removal

Telephone

Utilities - water, landscaping

TOTAL EXPENSES ALLOCATED EQUALLY AMONG LOTS

EQUIVALENT PERSON CHARGES

Reserve for replacement - appliances/laundry equipment

Reserve for replacement - common building

Repairs and maintenance - common building

Repairs and maintenance - kitchen

Repairs and maintenance - north firelane

Supplies - common building

Trash

Utilities - gas and electric, common building

and outside lighting

Utilities - water, common building

TOTAL EXPENSES ALLOCATED BY EQUIVALENT PERSON

INSURANCE AND EXTERIOR MAINTENANCE EXPENSES

Insurance - housing units

TOTAL INSURANCE EXPENSES ALLOCATED BY TOTAL SQUARE FEET

Repairs and maintenance - residences

Reserve for replacement - roofs

Reserve for replacement - exteriors and siding

TOTAL R & M EXPENSES ALLOCATED BY TOTAL SQUARE FEET

GARAGE AND CARPORT EXPENSES

Repairs and maintenance - garages/carports

Reserve for replacements - garages/carports

TOTAL EXPENSES ALLOCATED TO GARAGE/CARPORT OWNERS