Loading...
HomeMy WebLinkAbout1986-083634 Recording Requested 12 y: - TICOR TITLE INSURANet CO. %IWEN RECORDED RETURN TO: Peter C. Miller, Esq. oc. N0. &3634 MILLER & WALTER The Promontory SAN U'�18PO L�S 412 Higuera Street San Luis Obispo, CA 93401 DEC 1 7 1986 FRANCIS M. COONEY County Clerk- Recorder TIME 8.'00 AM RANCHO GRANDE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS TABLE OF CONTENTS Page # INTRODUCTORY PARAGRAPHS A thru C 1 ARTICLE I DEFINITIONS 2 1.1 Articles 2 1.2 Assessment 2 1.3 Association 2 1.4 Board or Board of Directors 2 1.5 Bylaws 2 1.6 Common Area 2 1.7 Common Expenses 2 1.8 Declarant 2 1.9 Declaration 2 1.10 Eligible Holder Mortgages 2 1.11 Eligible Mortgage Holder 2 1.12 Eligible Insurer or Guarantor 3 1.13 First Lender 3 1.14 Lot 3 1.15 Map 3 1.16 Member 3 1.17 Mortgage 3 1.18 Mortgagee 3 1.19 Owner 3 1.20 Person 3 1.21 Project 3 1.22 Project Documents 3 1.23 Property 3 1.24 Singular and Plural 4 1 VOL 2026 PAGE 440 Page if ARTICLE II DESCRIPTION OF PROJECT, DIVISION OF PROPERTY, AND CREATION OF PROPERTY RIGHTS 4 2.1 Description of Project 4 2.2 Easements; Dedication of Common Area 4 2.3 Easements to Accompany Conveyance of Lot 5 2.4 Delegation of Use 5 2.5 Conveyance of Common Area to Association 5 2.6 Owners' Rights and Easements for Utilities 5 2.7 Maintenance Easement 6 2.8 Drainage 6 2.9 Other Easements 7 2.10 Rights of Entry and Use 7 2.11 Partition of Common Area or Lots 8 2.12 Care of Street Trees 8 ARTICLE III ASSOCIATION, ADMINISTRATION, MEMBERSHIP AND VOTING RIGHTS 8 3.1 Association to Own and Manage Common Areas 8 3.2 Membership 8 3.3 Transferred Membership 8 3.4 Membership Class and Voting Rights 9 Class A 9 Class B 9 ARTICLE IV MAINTENANCE AND ASSESSMENTS 9 4.1 Creation of the Lien and Personal Obligation of Assessments 9 4.2 Purpose of Assessments 10 4.3 Setting Assessments 10 4.4 Reserves 11 4.5 Notice and Quorum for Any Action Authorized Under Sections 4.3 and 4.4 11 4.6 Uniform Rate of Assessment 11 4.7 Date of Commencement of Annual Assessment; Due Dates 11 4.8 Effect of Nonpayment of Assessments 12 4.9 Transfer of Lot by Sale or Foreclosure 12 4.10 Priorities; Enforcement; Remedies 12 4.11 Statutory Restriction of Assessments 14 ii VOL 2926 PAGE 441 Page # ARTICLE V DUTIES AND POWERS OF THE ASSOCIATION 14 5.1 Duties 14 A. Maintenance 14 B. Insurance 15 C. Discharge of Liens 16 D. Assessments 16 E. Payment of Expenses 16 F. Enforcement 17 5.2 Powers 17 A. Easements 17 B. Manager 17 C. Adoption of Rules 17 D. Access 17 E. Assessments, Liens and Fines 17 F. Enforcement 18 G. Acquisition and Disposition of Property 18 H. Loans 18 I. Dedication 18 J. Contracts 18 K. Delegation 18 L. Use of Recreational Facilities 19 M. Appointment of Trustee 19 N. Other Powers 19 5.3 Commencement of Association's Duties and Powers 19 ARTICLE VI ARCHITECTURAL CONTROL 19 6.1 The Architectural Control Committee 19 6.2 Approval 21 6.3 Nonliability 23 6.4 Governmental Approval 23 6.5 Variances 24 ARTICLE VII ARCHITECTURAL AND USE RESTRICTIONS 24 7.1 Use of Lot 24 7.2 Health Care Facilities 24 7.3 Nuisances 24 7.4 Vehicle Restrictions 24 7.5 Commercial Activity 25 7.6 Storage in Common Area 25 7.7 Signs 25 7.8 Animals 25 7.9 Garbage and Refuse Disposal 26 iii VOL 2926 PAGE 442 Page # 7.10 Radio and Television Antennas 26 7.11 Clothes Lines 26 7.12 Liability of Owners for Damage to Common Area 27 • 7.13 Leasing of Lots 27 7.14 Common Area Parking 27 7.15 Minimum Size 27 7.16 Minimum Setbacks and Sideyards 27 7.17 Height Limitations 27 7.18 Architectural Style 28 7.19 Roofs 28 7.20 Exterior Walls 28 7.21 Windows and Window Coverings 28 7.22 Fences 28 7.23 Landscaping 28 7.24 Utilities and External Fixtures 29 7.25 Street Numbers and Lighting 29 • ARTICLE VIII GENERAL PROVISIONS 29 8.1 Enforcement 29 8.2 Invalidity of Any Provision 30 8.3 Term 30 8.4 Amendments 30 8.5 Rights of First Lenders 30 A. Copies of Project Documents 30 B. Audited Statement 31 C. Notice of Action 31 D. Consent to Action 31 E. Right of First Refusal 33 F. Contracts 33 G. Reserves 33 H. Priority of Liens 33 I. Distribution of Insurance or Condemnation Proceeds 33 J. Restoration or Repair 33 K. Termination 34 L. Reallocation of Interests 34 M. Termination of Professional Management 34 N. Payment of Taxes or Insurance by Lenders 34 8.6 Owner's Right and Obligation to Maintain and Repair 34 8.7 Damage or Destruction 35 8.8 Damage and Destruction Affecting Lots 36 8.9 Condemnation 36 8.10 Limitation of Restrictions on Declarant 37 8.11 Termination of Any Responsibility of Declarant 38 iv VOL 29 PACE 443 8.12 Owner's Compliance 38 8.13 Notices 38 8.14 Special Provisions Relating to Enforcement of Declarant's Obligation to Complete Common Area improvements 38 8.15 Fair Housing 39 8.16 FHA /VA Approval 39 8.17 Binding Arbitration 39 EXECUTION 40 VOL 2926 fltE 444 �. .., RANCHO GRANDE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS THIS DECLARATION, made on the date hereinafter set forth, by OTTSE, INC., a California corporation, hereinafter referred to as "Declarant," is made with reference to the following facts: A. Declarant is the owner of certain property located in ' the City of Arroyo Grande, County of San Luis Obispo, State of California, more particularly described as Lot 135 (referred to herein as "Lot A ") and Lots 1 through 134, inclusive, embraced within the boundaries of the subdivision shown on the Subdivision Map entitled Tract No. 1132, which Map was filed for record in the Office of the Recorder of the County of San Luis Obispo, State of California, on It isa , 19 be, , in Book 13 of Maps at Page &&t . B. The development shall be referred to as the "project" as defined in section 1.21 or the "property" as defined in Section 1.23. C. Declarant intends by this document to impose upon the property mutually beneficial restrictions under a general plan of improvement for the benefit of all owners of lots. NOW, THEREFORE, Declarant hereby declares that Lot A (Lot 135) and Lots 1 through 134, inclusive, in Tract No. 1132 shall be held, sold, leased, mortgaged, encumbered, rented, used, occupied, improved and conveyed subject to the following declara- tions, limitations, easements, restrictions, covenants, and conditions, which are imposed as equitable servitudes pursuant to a general plan for the development of the property for the purpose of enhancing and protecting the value and desirability of the property and every part thereof, and which shall run with the real property and be binding on Declarant and its successors and assigns, and on all parties having or acquiring any right, title or interest in or to the described property or any part thereof, their heirs, successors and assigns, and shall inure to the benefit of each owner thereof. VOL 2926 PAGE 445 ARTICLE I DEFINITIONS 1.1 "Articles" shall mean and refer to the Articles of Incorporation of the Association, as amended from time to time. 1.2 "Assessment" shall mean that portion of the cost of maintaining, improving, repairing, operating and managing the property which is to be paid by each lot owner as determined by the Association. 1.3 "Association" shall mean and refer to the RANCHO GRANDE HOMEOWNERS ASSOCIATION, a California nonprofit mutual benefit corporation, the members of which shall be the owners of lots in the project. 1.4 "Board" or "Board of Directors" shall mean and refer to the governing body of the Association. 1.5 "Bylaws" shall mean and refer to the Bylaws of the Association, as amended from time to time.' 1.6 "Common area" shall mean and refer to the portions of the property (and all improvements on those portions) owned by the Association for the common use and enjoyment of the owners which, on recordation of the Map and conveyance by deed to the Association, shall consist of Lot A (Lot 135) and the fence located on the Association's Fence Easement over portions of Lots 30 through 42 and 50 through 62, and the landscaping owned by the Association relating to the meandering sidewalk located within the adjacent ten foot strip of the public rights of way for Rancho Parkway and James Way. 1.7 "Common expenses" means and includes the actual and estimated expenses of operating the common area and any reasonable reserve for such purposes as determined by the Board and all sums designated common expenses by or pursuant to the Declaration, Articles, or Bylaws. 1.8 "Declarant" shall mean and refer to OTTSE, INC., a California corporation, and its successors and assigns if any successors or assigns should acquire more than one (1) undeveloped lot from the Declarant for the purposes of development. 1.9 "Declaration" shall mean and refer to this Declaration, as amended or supplemented from time to time. 1.10 "Eligible holder mortgages" shall mean mortgages held by "eligible mortgage holders ". 1.11 "Eligible mortgage holder" shall mean a first lender who has requested notice of certain matters from the Association in accordance with section 8.5C. 2 VOL 2926 PAGE 446 1.12. "Eligible insurer or guarantor" shall mean an insurer or governmental guarantor of a first mortgage who has requested notice of certain matters from the Association in accordance with section 8.5C. 1.13 "First lender" shall mean any bank, savings and loan association, insurance company, or other financial institution, person or entity holding a recorded first mortgage on any lot. 1.14 "Lot" shall mean and refer to Lots 1 through 134, together with any improvements thereon, as shown on the Map with the exception of the common area. 1.15 "Map" shall mean and refer to that Subdivision Map entitled Tract No. 1132 recorded the 10 day of Dece w ur , 1913b , in Book I% of Maps at Page bg , in the records of San Luis Obispo County. 1.16 "Member" shall mean and refer to a person entitled to membership in the Association as provided herein. 1.17 "Mortgage" shall include a deed of trust as well as a mortgage. 1.18 "Mortgagee" shall include a beneficiary or a holder of a deed of trust as well as a mortgagor. 1.19 "Owner" shall mean and refer to the record owner, whether one (1) or more persons or entities, of a fee simple title to any lot which is a part of the project but excluding those persons or entities having an interest merely as security for the performance of an obligation. If a lot is sold under a recorded contract of sale, the purchaser, rather than the fee owner, will be considered the "owner ". 1.20. "Person" means a natural person, a corporation, a partnership, a trustee, other legal entity. 1.21 "Project" shall mean and refer to the real property comprising Lot A (Lot 135) and Lots 1 through 134, inclusive, of Tract No. 1132, including all improvements and structures erected or to be erected thereon, plus the meandering sidewalk and associated landscaping located within the ten foot strip of public right of way for Rancho Parkway and James Way which lies immediately adjacent to those lots. 1.22 "Project documents" shall mean and refer to this Declaration, together with the other basic documents used to create and govern the project, including the Map, the Articles, the Bylaws (but excluding unrecorded rules and regulations adopted by the Board or the Association or the Committee). 1.23 "Property" shall mean and refer to the real property above described and all improvements erected or to be erected thereon, and such additions thereto as may hereafter be brought 3 VOL 21_6 PAGE 447 within the jurisdiction of the Association, and all property, real, personal or mixed, intended for use in connection with the project. 1.24 "Singular, plural and gender ": The singular and plural number and the masculine, feminine and neuter gender shall each include the others where the context so indicates or re- quires. ARTICLE II DESCRIPTION OF PROJECT, DIVISION OF PROPERTY, AND CREATION OF PROPERTY RIGHTS 2.1 Description of Project: The project is a planned development consisting of the common area described in section 1.6 above, and the one hundred thirty -four (134) building lots shown on the Map. Declarant intends to develop the property as follows: A. Lots 1 through 134 are to be sold individually as unimproved lots for the construction of single family residences thereon. None of these lots shall be further subdivided. B. Lot A (Lot 135) is to be landscaped by Declarant as shown in the adopted "Rancho Parkway Streetscape ", and shall be conveyed to the Association for the use and enjoyment of the lot owners subject to rules and regulations established by the Association. The meandering sidewalk shall be dedicated to the City of Arroyo Grande. The Association shall maintain the landscaping associated with the meandering sidewalk. The Association shall reimburse the City of Arroyo Grande for all costs reasonably incurred by the said City due to the Association's improper maintenance or failure to maintain the associated landscaping, for damage to the meandering sidewalk caused by the landscaping, for elimination of hazards or public nuisances, and for remedial landscape maintenance. 2.2. Easements; Dedication of Common Area: Each of Lots 1 through 134 shown on the Map shall have appurtenant to it the right of easement over Lot A for ingress and egress, and for use, occupancy and enjoyment of it subject to the following provisions: A. The right of the Association to charge reasonable admission and other fees for the use of any recreational facility situated upon Lot A; B. The right of the Association to discipline members, to suspend the voting rights of a member, and to suspend the right of a member to the use of the recreational facilities for any period during which any assessment against his lot remains unpaid, and for any infraction of the Declaration, Bylaws, Articles or written rules and regulations in accordance with the provisions of sections 4.10, 5.2.F and 8.1 hereof; VOL 2926 PAGE 448 4 C. The right of the Association to dedicate, transfer or mortgage all or any part of the common area to any public agency, authority, or utility for such purposes and subject to such conditions as may be agreed to by the members, provided that in the case of the borrowing of money and the mortgaging of its property as security therefor, the rights of such mortgagee shall be subordinate to the rights of the members of the Association. No such dedication, transfer or mortgage shall be effective unless an instrument signed or approved by three - fourths (3/4) of each class of members agreeing to such dedication, transfer or mortgage has been recorded; D. The right of the Association to further develop for common purposes and to grant easements under, in, upon, across, over, above or through any portion of the common area for pur- poses, including, without limitation, access, utilities, and parking, which are beneficial to the development of the pro- perties in accordance with the general plan established by this Declaration; E. The right of the Association, and its agents acting for the Association, to go upon the Association's Fence Easement over portions of Lots 30 through 42 and 50 through 62 for purposes of the Association as allowed in this Declaration. Said Fence Easement shall not grant any right to an owner of a lot in his individual capacity to go upon the lot of another. 2.3 Easements to•Accompany Conveyance of Lot: Easements that benefit or burden any lot shall be appurtenant to that lot and shall automatically accompany the conveyance of the lot, even though the description in the instrument of conveyance may refer only to the fee title to the lot. 2.4 Delegation of Use: Any owner may delegate, in accordance with the Bylaws, his right of enjoyment to the common area and facilities to the members of his family, his tenants, or contract purchasers, who reside on the property. Nonresident members, their families, guests and relatives, are not permitted to use any recreational facilities during periods when their lot is leased to and /or occupied by others (nonfamily members) unless such facility is open to the general public. 2.5 Conveyance of Common Area to Association: On or before conveyance of title to the first lot, Declarant shall deed the common area to the Association to be held for the benefit of the members of the Association. 2.6 Owners' Rights and Easements for Utilities (including access): The rights and duties of the owners of lots within the project with respect to access, sanitary sewer, water, electricity, gas, television receiving, telephone equipment, cables and lines (hereinafter referred to, collectively, as "utility facilities ") shall be as follows: 5 2926 Pea 449. A. Whenever utility facilities are installed within the project, which utility facilities or any portion thereof lie in or upon a lot or lots owned by other than the owner of a lot served by the utility facilities, the owners of any lots served by the utility facilities shall have the right of reasonable access for themselves or for utility companies to repair, to replace and to generally maintain said utility facilities as and when the same may be necessary. B. Whenever utility facilities are installed within the project, which utility facilities serve more than one (1) lot, the owner of each lot served by the utility facilities shall be entitled to the full use and enjoyment of such portions of the utility facilities as service his lot. C. All such utilities easements shall be exercised by the dominant tenement(s) so as to damage, restrict or interfere with the use of the servient tenement(s) in the least way reasonable. Said easements shall be deemed non - exclusive to the dominant tenement(s). Cost of maintenance shall be upon the dominant tenement(s), which shall include the obligation to repair any damage caused to the servient tenement(s). The servient tenement(s) shall build no dwelling or substantial permanent structure (not including paving or retaining walls) over any such easement, and the loss of any large tree or shrubbery within such easement shall be at the risk of the servient tenement. D. In the event of a dispute between owners with respect to the repair or rebuilding of said utility facilities, or with respect to the sharing of the cost thereof, then, upon written request of one (1) of such owners addressed to the Association, the matter shall be submitted to the Board, which shall decide the dispute, and the decision of the Board shall be final and conclusive on the parties. 2.7 Maintenance Easement: A right of way over and under each lot is reserved by Declarant, and is hereby granted to the Association, for the purpose of entering upon the property to perform such maintenance, if any, as the Association elects to do in accordance with the provisions of section 5.1.A of this Declaration, or as may otherwise hereafter be required to service any portion of the property for the installation, repair, or maintenance of sanitary sewer, water, electricity, gas, telephone, television or drainage. 2.8 Drainage: There shall be no material change in grade or ground level nor interference with the established drainage pattern over any property within the project unless adequate provision is first made for proper drainage and which provision is first approved by the Architectural Control Committee and the City of Arroyo Grande. For purposes hereof, "established" drainage is defined as the drainage which existed at the record- ing of the Map in the Office of the County Recorder of San Luis Obispo County and is shown on the drainage plan attached hereto 6 VOL 2 9 2 6 PAGE 4 u 0 as Exhibit A, which plan is by this reference incorporated herein, or that which is shown on any plans hereafter approved by the Architectural Control Committee and the City of Arroyo Grande. Each lot is required to accept surface waters from those neighboring lots or common areas which are adjacent to it, provided that said waters are discharged upon it pursuant to the established drainage and provided that said waters are not so discharged in undue concentration or velocity. It shall be the duty and responsibility (and expense) of the discharging lot owner not to discharge said waters in undue concentration or velocity. Questions of undue concentration or velocity and other questions involving the relative drainage rights and obligations of neighboring properties shall be determined in the sole and reasonable judgment of the Architectural Control Committee, whose decision shall be final and conclusive. If, for any reason, the Architectural Control Committee should fail to make a decision on such a question, the question shall be finally and conclusively decided by the Public Works Director of the City of Arroyo Grande. It shall be the duty of the accepting lot owner to construct and maintain at his or her own cost all drainage structures, including those which have been offered for dedica- tion but whose dedication has not been accepted by the City of Arroyo Grande, required to convey surface waters across his or her lot. This provision is intended to provide freedom to each Owner to deal with surface waters upon the Owner's lot in any way the Owner wishes, provided that (a) the Owner shall not interfere with structures which have been offered for dedication to a public entity, and (b) the Owner's plan is first approved by the Committee and the City of Arroyo Grande, and (c) The Owner's plan does not work to the detriment or potential detriment of a neighboring property without the Owner of that property's prior written permission. 2.9 Other Easements: The common area and each lot are subject to all easements, dedications, and rights of way granted or reserved in, on, over and under the property as shown on the Map. A summary of said easements is attached hereto as Exhibit B and, by this reference, incorporated herein. In the event of conflict between the Map and Exhibit B, the Map shall control. 2.10 Right of Entry and Use: The lots and common area (including the Association Fence Easement) shall be subject to the following rights of entry and use: A. The right of the Association agents to enter any lot to cure any violation of this Declaration or the Bylaws, provided that the owner has received notice and a hearing as required by the Bylaws (except in the case of an emergency) and the owner has failed to cure the violation or take steps necessary to cure the violation within thirty (30) days after the finding of a violation by the Association; VOL2J2U PAGE 451 B. The access rights of the Association to maintain, repair or replace improvements or property located in the common area as described in section 5.2.D; C. The easements described in this Article II; D. The right of the Association's agents to enter any lot to perform maintenance as described in section 8.6; E. The right of members of the Architectural Control Committee or their authorized agents to enter the property for inspection purposes as described in section 6.2; F. The rights of the Declarant during the construction period as described in section 8.10; 2.11 Partition of Common Area or Lots: There shall be no subdivision or partition of the common area or of lots, nor shall any owner seek any partition or subdivision thereof. 2.12 Care of Street Trees: The owner of each Lot shall be • solely responsible for the care, watering, trimming, maintenance and replacement of trees located within the Street Tree and Public Utilities Easement upon said Owner's Lot. Should said owner fail to perform such responsibility, the Association or City of Arroyo Grande may perform same at said Owner's expense. ARTICLE III ASSOCIATION, ADMINISTRATION, MEMBERSHIP AND VOTING RIGHTS 3.1 Association to Own and Manage Common Area: The Association shall own and manage the common area in accordance with the provisions of this Declaration, the Articles and Bylaws of the Association. 3.2 Membership: The owner of a lot shall automatically, upon becoming the owner of same, be a member of the Association, and shall remain a member thereof until such time as his ownership ceases for any reason. Membership shall be appurtenant to and may not be separated from ownership of a lot. Membership 'shall be held in accordance with the Articles and Bylaws of the Association. 3.3 Transferred Membership: Membership in the Association shall not be transferred, encumbered, pledged, or alienated in any way, except upon the sale or encumbrance of the lot to which it is appurtenant, and then only to the purchaser in the case of a sale, or only to a mortgagee in the case of an encumbrance of such lot. On any transfer of title to an owner's lot, including a transfer on the death of an owner, membership passes automatically with title to the transferee. A mortgagee does not have membership rights until it obtains title to the lot through foreclosure or deed in lieu thereof. Any attempt to make a prohibited transfer is void. No member may 8 VOL 292 PAGE 4 a2 resign his membership. On notice of a transfer, the Association shall record the transfer on its books. 3.4 Membership Classes and Voting Rights: The Association shall have two (2) classes of voting membership: Class A. Class A members shall be all owners with the exception of the Declarant (as defined in section 1.8) and shall be entitled to one (1) vote for each lot owned. When more than one (1) person holds an interest in any lot, all such persons shall be members. The vote for such lot shall be exercised as they among themselves determine, but in no event shall more than one (1) vote be cast with respect to any lot and in no event shall partial votes be counted; nor shall the Association be required to decide which, among contesting claimants, is entitled to cast the vote which is appurtenant to a particular lot. Class B. The Class B member shall be the Declarant and shall be entitled to vote as follows: Voting shall be the same as for Class A memberships, except that the Class B member may triple its votes for each lot owned. The Class B membership shall cease and be converted to Class A membership on the happening of either of the following events, whichever occurs earlier: (a) When the total outstanding votes held by Class A members equal the total outstanding votes held by the Class B Members; or (b) On the second anniversary of the issuance of the original final public report by the Department of Real Estate. Any action by the Association which must have the approval of the members before being undertaken shall require the vote or written assent of a majority of each class of membership during the time that there are two (2) outstanding classes of membership. Where the vote or written assent of each class of membership is required, any requirement that the vote of Declarant be excluded is not applicable, except as provided in section 8.14 hereof. After the conversion of Class B membership to Class A membership, any provision herein requiring the approval of members other than Declarant, except as provided in section 8.14, shall mean the vote or written assent of a majority of the total voting power of the Association (including Declarant's vote(s)) and the vote or written assent of a majority of the total voting power of members other than the Declarant. Voting rights attributable to lots shall not vest until assessments have been levied against those lots by the Association. ARTICLE IV MAINTENANCE AND ASSESSMENTS 4.1 Creation of the Lien and Personal Obligation of Assessments: The Declarant, for each lot owned within the project, hereby covenants, and each owner of any lot by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, is deemed to covenant and agree: (1) to pay to the Association Annual assessments or charges and Special 9 VOL 292 PAGE 4 33 assessments for purposes permitted herein, such assessments to be established and collected as hereinafter provided, and (2) to allow the Association to enforce any assessment lien established in accordance with the provisions of this Declaration by nonjudicial proceeding under a power of sale or by any means authorized by law. The Annual and Special assessments, together with interest, costs, and reasonable attorneys' fees, shall be a charge on the land and shall be a continuing lien upon the property against which each such assessment is made, the lien to become effective upon recordation of a notice of assessment. Each such assessment, together with interest, costs, and reasonable attorneys' fees, shall also be the personal obligation of the person who was the owner of such property at the time when the assessment fell due. No owner of a lot may exempt himself from liability for his contribution towards the common expenses by contract with a third party, by waiver of the use or enjoyment of any of the common areas, or by the abandonment of his lot. 4.2 Purpose of Assessments: The assessments levied by the Association shall be used exclusively to promote the economic interests, recreation, health, safety, and welfare of all the residents in the project and to provide insurance, improvement and maintenance of the common area, for the common good of the project. 4.3 Setting Assessments: A. From and after January 1 of the year following the conveyance of the first lot to an owner, the Board of Directors, without a vote of the membership, may increase or decrease the regular Annual assessment by not more than ten percent (10%) over or below the regular Annual assessment for the preceding fiscal year. B. In any fiscal year the Board of Directors, without a vote of the membership, may levy Special assessments which, in the aggregate, do not exceed five percent (5 %) of the budgeted gross expenses of the Association for that fiscal year. Special assessments shall be levied on the same basis as regular Annual assessments. C. Any raising or lowering of the regular Annual assessment or imposition of Special assessments in excess of the limits set forth in Subparagraph A or B, above, by the Board of Directors shall require the approval of owners other than the Declarant casting a majority of the votes at a meeting or election of the Association conducted in accordance with Chapter 5 (commencing with Section 7510) of Part 3 of Division 2 of Title 1 of the California Corporations Code and Section 7613 of the California Corporations Code. D. The provisions of the preceding Sub - Paragraphs A, B and C do not limit assessment increases for the purposes of the maintenance or repair of the common areas or other areas which the Association is obligated to maintain or repair, including, 10 Vol 2926 PAGE 454 but not limited to, the payment of insurance premiums, the payment of utility bills, the costs incurred in maintaining or repairing structures or improvements, and funding reserves or addressing emergency situations. E. Funds from both regular Annual assessments and Special assessments may, among other things, be used to fund new or replacement capital improvements. 4.4 Reserves: As part of the regular Annual assessments for maintenance authorized above, the Board of Directors shall annually fix the amount to be contributed pro rata by each member to reserve funds for the purpose of defraying, in whole or in part, the cost or estimated cost of any reconstruction, repair or replacement of improvements, including fixtures and personal property related thereto. Such determination shall be made after consideration of the need for additional funds and of the Association's capital position. The Board shall maintain a separate account for those reserve funds. The Board shall fix the method of payment of such assessments and shall be empowered to permit either lump sum or monthly payments. Separate records shall be maintained for all funds deposited to the said account, which shall be designated as a "Reserve Account ". Amounts received by the Association as contributions, assessments or dues from the owners shall be held in one (1) or more accounts. Deposits shall be made, and funds accounted for, so.that reserves for capital improvements and for replacement, can be clearly separated from funds for operating expenses or repair and maintenance funds. Capital improvement and replace- ment funds shall be used solely for capital improvements and replacements of the common area within the project. 4.5 Notice and Quorum for Any Action Authorized Under Sections 4.3 or 4.4: Any action authorized under sections 4.3 or 4.4, which requires a vote of the membership, shall be taken at a meeting called for that purpose, written notice of which shall be sent to all members not less than ten (10) nor more than ninety (90) days in advance of the meeting, specifying the place, day and hour of the meeting and, in the case of a special meeting, the nature of the business to be undertaken. The action may also be taken without a meeting pursuant to the provisions of California Corporations Code §7513. 4.6 Uniform Rate of Assessment: Both Annual and Special assessments must be fixed at a uniform rate for all lots and may be collected on a monthly basis. 4.7 Date of Commencement of Annual Assessments; Due Dates: The regular assessments provided for herein shall commence as to all lots on the first day of the month following the closing of the first conveyance of a lot under authority of a public report issued by the California Department of Real Estate. 11 V0L 2 PMGE 455 Subject to the provisions of section 4.3 hereof, the Board of Directors shall use its best efforts to fix the amount of the Annual assessment against each lot and send written notice thereof to every owner at least sixty (60) days in advance of each Annual assessment period, provided that failure to comply with the foregoing shall not affect the validity of any assessment levied by the Board. The due dates shall be established by the Board of Directors. The Association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified lot have been paid. Such a certificate shall be conclusive evidence of such payment. 4.8 Effect of Nonpayment of Assessments: Any assessment not paid within fifteen (15) days after the due date shall be delinquent, shall bear interest at the rate of twelve percent (12%) per annum from 30 days after the due date until paid, and shall incur a late payment penalty in an amount to be set by the Board from time to time, not to exceed the maximum permitted by applicable law. 4.9 Transfer of Lot by Sale or Foreclosure: Sale or transfer of any lot shall not affect the assessment lien. However, the sale of any lot pursuant to mortgage foreclosure of a first mortgage shall extinguish the lien of such assessments (including fees, late charges, fines or interest levied in connection therewith) as to payments which became due prior to such sale or transfer (except for assessment liens recorded prior to the mortgage). No sale or transfer shall relieve such lot from liability for any assessments thereafter becoming due or from the lien thereof. Where the mortgagee of a first mortgage of record or other purchaser of a lot obtains title to the same as a result of foreclosure of any such first mortgage, such acquirer of title, his successor and assigns, shall not be liable for the assessments by the Association chargeable to such lot which became due prior to the acquisition of title to such lot by such acquirer (except for assessment liens recorded prior to the mortgage). (No amendment of the preceding sentence may be made without the consent of owners of lots to which at least sixty - seven percent (67%) of the votes in the Association are allo- cated, and the consent of the eligible mortgage holders holding first mortgages on lots comprising fifty -one percent (51 %) of the lots subject to first mortgages). The unpaid share of such assessments shall be deemed to be common expenses collectible from all of the lots including such acquirer, his successors or assigns. 4.10 Priorities; Enforcement; Remedies: If an assessment is delinquent, the Association may record a notice of delinquent assessment and establish a lien against the lot of the delinquent owner prior and superior to all other liens except (1) all taxes, bonds, assessments and other levies which, by law, would be superior thereto, and (2) the lien or charge of any first 12 VOL 2926 PAGE 456 mortgage of record (meaning any recorded mortgage or deed of trust with first priority over other mortgages or deeds of trust) made in good faith and for value. The notice of delinquent assessment shall state the amount of the assessment, collection costs, attorneys fees, late charges and interest, a description of the lot against which the assessment and other sums are levied, the name of the record owner, and the name and address of the trustee authorized by the Association to enforce the lien by sale. The notice shall be signed by any officer of the Association or any management agent retained by the Association. An assessment lien may be enforced in any manner permitted by law, including sale by the court, sale by the trustee de- signated in the notice of delinquent assessments, or sale by a trustee substituted pursuant to California Civil Code §2934(a). Any sale by the trustee shall be conducted in accordance with the provisions of California Civil Code § §2924, 2924b, 2924c, 2924f, 2924g, and 2924h, including any successor statutes thereto, applicable to the exercise of powers of sale in mortgages and deeds of trust, or in any other manner permitted by law. Nothing herein shall preclude the Association from bringing an action directly against an owner for breach of the personal obligation to pay assessments. Fines and penalties for violation of restrictions are not "assessments ", and are not enforceable by assessment lien. The Association,• acting on behalf of the owners, shall have the power to bid for the lot at foreclosure sale, and to acquire and hold, lease, mortgage and convey the same. Where the purchase of a foreclosed lot will result in a five percent (5%) or greater increase in assessments, the purchase shall require the vote or written consent of a majority of the total voting power of the Association, including a majority of members other than Declarant. During the period a lot is owned by the Association following foreclosure: (1) No right to vote shall be exercised on behalf of the lot; (2) No assessment shall be assessed or levied on the lot; and (3) Each other lot shall be charged, in addition to its usual assessment, its share of the assessment that would have been charged to such lot had it not been acquired by the Association as a result of foreclosure. After acquiring title to the lot at foreclosure sale following notice and publication, the Association may execute, acknowledge and record a deed conveying title to the lot, which deed shall be binding upon the owners, successors, and all other parties. Suit to recover a money judgment for unpaid common expenses, and attorneys' fees, shall be maintainable without foreclosing or waiving the lien securing the same. The Board may temporarily suspend the voting rights and right to use recreational facilities of a member who is in default in payment of any assessment, after notice and hearing, as provided in the Bylaws. 13 VOL 2dd PAGE 4 J 1 4.11 Statutory Restriction on Assessments: Notwithstanding anything herein to the contrary, the Board may not impose a regular assessment that is more than ten percent (10%) greater than the regular assessment for the Association's preceding fiscal year or impose Special assessments which in the aggregate exceed five percent (5%) of the budgeted gross expenses of the Association for that fiscal year without the approval of owners casting a majority of the votes at a meeting or election of the Association conducted in accordance with Chapter 5 (commencing with §7510) of Part 3 of Division 2 of Title 1 of the Corporations Code and S7613 of the Corporations Code, provided, that the foregoing provisions do not limit assessment increases for the following purposes: (1) The maintenance or repair of the common area or other areas which the Association is obligated to maintain or repair, including, but not limited to, the payment of insurance premiums, the payment of utility bills, the costs incurred in maintaining structures or improvements, and funding reserves; or (2) Addressing emergency situations. ARTICLE V DUTIES AND POWERS OF THE ASSOCIATION 5.1 Duties: In addition to the duties enumerated in its Articles of Incorporation and Bylaws, or elsewhere provided for in this Declaration, and without limiting the generality thereof, the Association shall perform the following duties: A. Maintenance: The Association shall maintain and repair the common area as defined in Section 1.6, including all improvements and landscaping thereon, and all property owned by the Association including without limitation, any recreational facilities, parking areas, driveways, fences, irrigation systems, lighting fixtures, and utility, sewer or drainage systems not maintained by a public entity, utility company, or improvement district; If the Association incurs any maintenance or repair costs because of the willful or negligent act or omission of any owner or the owner's agents, occupants, or invitees, and such cost was not covered by insurance maintained by the Association, the Association shall charge the responsible owner who immediately shall pay the charge to the Association together with interest thereon at the rate of twelve percent (12 %) per annum (but not in excess of the maximum interest rate authorized by law) from the date the cost was incurred by the Association until the date the charge is paid by the owner. If the owner disputes the charge, the owner shall be entitled to a notice and a hearing as provided in the Bylaws before the charge may be collected. As part of its maintenance responsibilities, the Association shall establish and maintain a fuel management program for the primary purpose of reducing the fire danger on the property. The 14 VOL 2926 PAGE 458 program shall comply with all applicable state and local governmental laws, ordinances, and regulations (but may contain more restrictive measures), and may include, without limitation, such fire control measures as weed abatement. The program may require the lot owners to take certain specific fire control measures, which measures may vary from lot to lot. The Association shall periodically verify compliance with the fuel management program, and shall have access to the lots on reasonable notice for purpose of such verification. If an owner fails to comply with the owner's obligations under the program, the Association, in addition to any of its other rights and remedies in the event of a breach of an obligation under this Declaration, may bring an action in any court of appropriate jurisdiction to enforce compliance, and shall be entitled to recover its costs and attorneys fees in any such action. In addition, the Association may, but is not obligated to, enter the lot of the noncomplying owner and take the necessary measures to bring the lot into compliance with the fuel management program. The noncomplying owner immediately shall reimburse the Association for all costs incurred in connection with such corrective action, together with interest at the rate of twelve (12%) per annum (but not to exceed the maximum rate authorized by law) from the date the Association incurred the cost until the date of reimbursement. The Association shall periodically review the fuel management program to keep it current with the current conditions of the property. • B. Insurance: The Association may obtain and continue in effect, casualty insurance covering any improvements and personal property owned by the Association, including, without limitation, fire and extended coverage (special form) insuring the current replacement cost thereof, and shall obtain and continue in effect public liability insurance insuring the Association and each owner for liability for the common area (including any Association improvements located on the public rights of way for Rancho Parkway and James Way) and a fidelity bond covering officers, directors and members in an amount determined by the Board, but in no event less than a sum equal to three (3) months aggregate assessments on all lots plus reserve funds if such bond is obtainable at reasonable cost. All insurance shall contain "waiver of subrogation" as to the Association, officers, directors, and members, and, if reasonably obtainable, a cross - liability or severability of interest endorsement insuring each insured against liability to each other insured. The minimum limits on the public liability insurance policy shall be $1,000,000 single limit and shall include personal injury, bodily injury, property damage and liability for nonowned automobiles. In addition, the Association shall obtain and continue in effect additional umbrella coverage of $1,000,000, or as an alternative may carry a $2,000,000 single limit policy. 15 VOL 2 nn 4.6 PAGE 439 Worker's compensation insurance shall at all times be carried to the extent required to comply with any applicable law. Officers' and Directors' liability insurance shall be carried by the Association to cover persons serving in such capacities (and to cover committee members) if such coverage is available at reasonable cost. Insurance premiums shall be a common expense to be included in the regular assessments levied by the Association, and amounts necessary for the the insurance premiums shall be held in a separate account of the Association and shall be used solely for the payment of the master insurance policy premiums as such premiums become due. Each owner shall obtain and maintain, at the owner's sole expense, fire and casualty coverage for improvements on the owner's lot as may be required by any mortgagee of the owner's lot and in no event less than the amount and type of fire and casualty insurance required to be obtained and maintained as determined by the Board. All such individually carried insurance shall contain a waiver of subrogation by the carrier as to the other owners, the Association, Declarant, and the first lender of such lot. Each buyer of a lot shall pay the portion of the premium(s) attributable to his lot (prorated to the date of close of escrow) for the policy or policies purchased by Declarant for the Association. All insurance policies shall be reviewed at least annually by the Board in order to ascertain whether the coverage contained in the policies is sufficient to make any necessary repairs or replacement of the property which might be damaged or destroyed. The limits and coverage shall be reviewed at intervals of not less than three (3) years and adjusted, if necessary, to provide such coverage and protection as the Association may deem prudent. C. Discharge of Liens: The Association shall discharge by payment, if necessary, any lien against the common area and charge the cost thereof to the member or members responsible for the existence of the lien after notice and hearing as provided in the Bylaws. D. Assessments: The Association shall fix, levy, collect and enforce assessments as set forth in Article IV hereof. E. Payment of Expenses: The Association shall pay all expenses and obligations incurred by the Association in the conduct of its business including, without limitation, all licenses, taxes or governmental charges levied or imposed against the property of the Association. n 16 VOL 2926 PAGE 4 6O F. Enforcement: This Declaration may be enforced by the Association, any member or, at the request of the Association or any member, by the City of Arroyo Grande or other public entity. 5.2 Powers: In addition to the powers enumerated in its Articles of Incorporation and Bylaws, or elsewhere provided for herein, and without limiting the generality thereof, the Association shall have the following powers: A. Easements: The Association shall have authority to grant easements in addition to those shown on the Map where necessary for utilities, cable television and sewer facilities over the common area to serve the common area and lots. B. Manager: The Association may employ a manager and /or other persons and may contract with independent con- tractors or managing agents to perform all or any part of the duties and responsibilities of the Association, except for the responsibility to levy fines, impose discipline, hold hearings, file suit, record or foreclose liens, or make capital expendi- tures, provided that any contract with a firm or person appointed as a manager or managing agent shall not exceed a one (1) year term, shall provide for the right of the Association to terminate the same at the first annual meeting of the members of the Association, and to terminate the same without cause or payment of a termination fee on thirty (30) days' written notice, or for cause on ten (10) days' written notice. C. Adoption of Rules: The Association or the Board may adopt reasonable rules not inconsistent with this Declaration relating to the use of the common area and all facilities there- on, and the conduct of owners and their tenants and guests with respect to the property and other owners. D. Access: For the purpose of performing construc- tion, maintenance or emergency repair for the benefit of the common area or the owners in common, the Association's agents or employees shall have the right, after reasonable notice (except in emergencies, not less than twenty -four (24) hours) to the owner thereof, to enter any lot at reasonable hours. Such entry shall be made with as little inconvenience to the owner as practicable and any damage caused thereby shall be repaired by the Board at the expense of the Association. E. Assessments, Liens and Fines: The Association shall have the power to levy and collect assessments in accord- ance with the provisions of Article IV hereof. The Association may impose fines or take disciplinary action against any owner for failure to pay assessments or for violation of any provision of the project documents. Penalties may include but are not limited to fines, temporary suspension of voting rights, and rights to the use of any recreational facilities, or other appropriate discipline, provided the member is given notice and a 17 VOL 2926 PAGE 461 hearing as provided in the Bylaws before the imposition of any fine or disciplinary action. F. Enforcement: The Association shall have the power to enforce this Declaration or to request the enforcement of it by the City of Arroyo Grande or other public entity. G. Acquisition and Disposition of Property: The Association shall have the power to acquire (by gift, purchase or otherwise), own, hold, improve, build upon, operate, maintain, convey, sell, lease, transfer, or otherwise dispose of real or personal property in connection with the affairs of the Association. Any transfer of property shall be by document signed by the President and Secretary after approval by three - fourths (3/4) of the total voting power of the Association, which shall include three - fourths (3/4) of the members other than Declarant, or where the two (2) class voting structure is still in effect, three - fourths (3/4) of the voting power of each class of members. H. Loans: The Association shall have the power to borrow money, but only with the assent (by vote or written consent) of three- fourths (3/4) of the total voting power of the Association including three - fourths (3/4) of the members other than Declarant, or where the two (2) class voting structure is still in effect, three - fourths (3/4) of the voting power of each class of members, and with the assent (by vote or written consent) of the same proportion of members, to mortgage, pledge, deed in trust, or hypothecate any or all of its real or personal property as security for money borrowed or debts incurred. I. Dedication: The Association shall have the power to dedicate, sell, or transfer all or any part of the common area to any public agency, authority, or utility for such purposes and subject to such conditions as may be agreed to by the members. No such dedication shall be effective unless an instrument has been approved by three - fourths (3/4) of the total voting power of the Association including three - fourths (3/4) of the members other than Declarant, or where the two (2) class voting structure is still in effect, three - fourths (3/4) of the voting power of each class of members, agreeing to such dedication, sale or transfer. J. Contracts: The Association shall have the power to contract for goods and /or services for the common area, facilities and interests or for the Association, subject to limitations set forth in the Bylaws, or elsewhere herein. K. Delegation: The Association, the Board, and the officers of the Association shall have the power to delegate their authority and powers to committees, provided that the Board shall not delegate its responsibility: (1) To make expenditures for capital additions or improvements chargeable against the reserve funds; 18 VOL 2926 PAGE 462 (2) To conduct hearings concerning compliance by an owner or his tenant, lessee, guest or invitee with the Declaration, Bylaws or rules and regulations promulgated by the - Board; (3) To make a decision to levy monetary fines, impose special assessments against individual units, temporarily suspend an owner's rights as a member of the Association or otherwise impose discipline; (4) To make a decision to levy regular or Special assessments; or (5) To make a decision to bring suit, record a claim of lien or institute foreclosure proceedings for default in payment of assessments. L. Use of any Recreational Facilities: The Association shall have the power to limit the number of an owner's tenants or guests who may use any recreational facilities, provided that all limitations apply equally to all owners, unless imposed for disciplinary reasons after notice and hearing. M. Appointment of Trustee: The Association, or the Board acting on behalf of the Association, has the power to appoint or designate a trustee to enforce assessment liens by sale as provided in section 4.10 and California Civil Code 51367(b). N. Other Powers: In addition to the powers contained herein, the Association may exercise the powers granted to a nonprofit mutual benefit corporation under California Corporations Code 57140. 5.3 Commencement of Association's Duties and Powers: Until incorporation of the Association, all duties and powers of the Association as described herein, including all rights of consent and approval, shall be and remain the duties and powers of the Declarant. From and after the date of incorporation of the Association, the Association shall assume all duties and powers, and the Declarant shall be relieved of any further liability therefor. ARTICLE VI ARCHITECTURAL CONTROL 6.1 The Architectural Control Committee: An Architectural Control Committee (the "Committee ") shall be established. The Committee shall have not less than three (3) nor more than five (5) members, any one or more of which may be non - members of the Association. Declarant may appoint all of the original members of the Committee and all replacements until the first anniversary of the issuance of the original public report by the California 19 voL2ac.OPAGE4f3 • 'Department of Real Estate, and thereafter may appoint a majority of the members until either 90% of all lots in the project have been sold or until the third anniversary of the date of the original issuance of the final public report, whichever first occurs. After one year from the date of issuance of the original public report, the Board may appoint one member to the Committee until 90% of the lots in the project have been sold or until the third anniversary of the date of the original issuance of the final public report for the project, whichever first occurs. Thereafter the Board shall appoint all of the members of the Committee. Members shall serve for a two (2) year term. Initial appointments shall be made so that approximately one -half of the terms of Committee members expire each year. If a member is removed from the Committee for any reason during his term, the person appointing the member shall immediately appoint a replacement for the balance of the removed member's term. Until a replacement is named, the remaining members of the Committee shall have full authority to act on behalf of the Committee. No member of the Committee shall be entitled to any compensation for serving as a member. All actions of the Committee shall be governed by a majority vote of the members. The Committee shall meet at such times and places as it shall designate. The Committee shall enforce the requirements set forth in this Declaration regarding the type, location, quality, size, height, use, and other matters relating to any improvements or landscaping to be constructed or installed on the lots and shall establish guidelines and procedures, subject to confirmation by the Board, for reviewing all plans and specifications submitted to it for approval. Any such procedure shall provide for notification to immediately adjoining lot Owners of the initial time and place for consideration by the Committee for approval of plans for construction. The Committee shall be responsible for periodic review and modification of the guidelines and procedures, with any substantial modifications being subject to confirmation by the Board. A copy of the current guidelines and procedures shall be supplied to any lot owner upon request. The Committee's primary goal shall be to insure the construction and maintenance of a first class residential project. Factors that shall be considered in approving or rejecting proposed plans and specifications shall include, without limitation: (i) conformity and harmony of external design with other lots in the project; (ii) effect which the location and orientation of the proposed improvement on its lot will have on neighboring lots, including considerations of unnecessary interferences with existing or potential views; (iii) relationship of the topography, grade and finished ground elevation to that of adjoining lots, including considerations of causing undue constraints or excessive site work to those adjoining lots which have not yet been developed; (iv) proper facing of elevations with respect to nearby streets and adjoining 20 VOL 2926 PAGE 464 lots; and (v) overall conformity with the general purpose of the project, the restrictions in this Declaration, and the guidelines developed pursuant hereto. 6.2 Approval: None of the following actions shall take place on any lot without the prior written approval of the Committee: A. Any construction, installation, repair (including exterior painting), replacement, alteration, addition or removal of any building, outbuilding, structure, footing, foundation, slab, wall, fence, garage, trash enclosure, storage area, driveway, parking area, berm, utilities (gas, electricity, telephone, water, or otherwise), or other exterior improvement or fixture, whether surface or subsurface; B. Any planting or landscaping (including the removal of any trees in excess of four (4) inches in diameter); C. Any grading, excavation, or site preparation; or D. Any placement or storage of building materials or temporary structures (including trailers, portable toilets, tents, mobile homes, motor homes, offices or vehicles). Approval shall require the applicant to submit to the Committee written plans and specifications in a manner and form satisfactory to the Committee and over the signature of the owner of the lot to be improved or of said owner's authorized agent. All plans and specifications shall conform with the guidelines established by the Committee. Plans shall adequately describe and show the proposed improvements; plot layout; all exterior elevations, materials and colors; landscaping plans (including the type and location of structural elements and sodding, seed- ing, trees, hedges, shrubs and irrigation); number, size and layout of parking; storage areas; trash enclosures; animal enclosures; existing topography, grading, drainage and excavation plans, finish grades and finish elevations of all floor surfaces and roof lines; easements and utility locations; proposed fenc- ing; construction schedule; and such other information as the Committee shall require. The Committee may, from time to time, grant variances or exceptions from the guidelines or procedures it has established for approving plans and specifications, which variances or exceptions may contain such conditions and time limitations as the Committee deems appropriate. The Committee may require the applicant to pay in advance or reimburse the Association for any costs incurred by the Committee in reviewing plans and specifications, including without limitation, any costs incurred in retaining consultants to assist the Committee in making its review. Except as paid or reimbursed by the applicant, any costs incurred by the Committee in the performance of its duties shall be paid by the Association. 2l voL 2926 PAGE 465 If the Committee fails to approve or disapprove any plans and specifications within sixty (60) days of receipt by the Committee of the complete package of materials set forth in the Committee's guidelines and procedures, including any advance payments required by the Committee, the plans and specifications shall be deemed approved unless a written extension is executed by the person submitting the plans. The Committee may require the submitting party to submit further detail or clarification material with regard to any aspect of the plans or specifica- tions. Any time taken by the submitting party to supply same and any time taken by a consultant retained by the Committee or at the Committee's direction, to supply his report or findings shall not be counted in determining said sixty (60) day period. All approved improvement work, once started, shall be diligently constructed and completed in accordance with the approved or deemed approved plans and specifications. It shall be the responsibility of the owner of the lot to promptly bring to the attention of the Committee any changes, sought to be made during construction, from the plans and specifications previously approved or deemed approved by the Committee, except for any such changes as will not be visible from the exterior of any structure sought to be changed. The changes proposed to be made shall be clearly demonstrated in writing and on the previously approved plans and delivered to the Committee. The Committee shall expeditiously consider such proposed changes and, unless disapproved by the Committee within ten(10) business days of receipt, or unless said time limitation is extended in writing signed by the owner, the plans and specifications shall be deemed approved as changed; provided however, that no change deemed approved by the Committee's failure in this manner to act shall be effective to increase the overall height of any portion of a structure, materially change the external materials, colors, elevations, roof materials or slope, drainage, minimum size or any specific requirements or restrictions set forth in Article VII of this Declaration. Any member of the Committee, or any authorized agent of the Committee, may from time to time and at any reasonable hour (reasonable prior notice shall be given in the case of an inhabited dwelling), but not later than sixty (60) days after completion of the improvement(s) in question, enter any lot for the purpose of inspecting any installation, construction, repair, replacement, or removal to insure compliance with the plans and specifications as previously approved by the Committee. In the event that any Committee member is denied entry at a reasonable hour when requested (without a reasonable time substitute being arranged at the time entry is denied), the time limitation shall be extended to sixty (60) days after notification by the owner to the Committee and to that Committee member that he will be permitted to enter. No time limitation as to inspection shall apply in the event of any action enumerated in A., B., C., or D., above, which was conducted without previous approval by the Committee of the plans and specifications therefor. 22 VOL G 9L C PAGE 466 If the said sixty (60) day time period is applicable, and for any reason the Committee fails to notify the owner of any noncompliance within the stated time limitation, then the im- provement shall be deemed to be in accordance with approved plans and specifications. Within said sixty (60) day time period (or at any time if no limitation applies), if the Committee finds that such work was not done in compliance with previously approved plans and specifications, it shall notify the owner in writing of such non - compliance, specifying the particulars of non - compliance, and shall require the owner to remedy same. If upon the expiration of thirty (30) days from the date of such notification the owner shall have failed to remedy such non - compliance, the Committee shall notify the Board in writing of such failure. Upon notice and hearing, the Board shall determine whether there is a non - compliance and, if so, the nature thereof and the estimated cost of correcting or removing same. If anon- compliance exists, the Owner shall remedy or remove the same within a period of not more than forty -five days from the date of announcement of the Board ruling. If the owner does not comply with the Board ruling within such period, the Board, at its option, may either remove the non - complying "improvement" or remedy the non - compliance, and the owner shall reimburse the Association, upon demand, for all expenses incurred in connection therewith. If such expenses are not promptly repaid by the owner to the Association, the Board shall levy an assessment against such owner and the owner's lot for reimbursement pursuant to the Article entitled "Maintenance and Assessments" and the section entitled "Special Assessments ". 6.3 Nonliability: The Association, the Committee, the Declarant, or the other lot owners, or their respective successors or assigns, shall not be liable to any person sub- mitting plans to the Committee for approval or to other lot owners or occupants by reason of any act or omission arising out of or in connection with the approval or disapproval of any plans or specifications. Approval shall not constitute any warranty or representation by the Committee or its members that the plans satisfy any applicable governmental law, ordinance, or regula- tion, or that any improvement constructed in accordance with the 'plans shall be structurally sound or fit for the use for which it was intended or safe for use or occupancy. Applicants shall make their own independent verification of the foregoing and shall not rely on the Committee or Board, or their members or consultants, in any manner in this regard. 6.4 Governmental Approval: Before commencement of any alteration or improvements approved by the Architectural Control Committee, the owner shall comply with all appropriate govern- mental laws and regulations. Approval by the Committee does not satisfy the appropriate approvals that may be required by any governmental entity with appropriate jurisdiction. Development plans, for example, shall be subject to architectural review by the Planning Commission or City Council of the City of Arroyo Grande. 23 vo1 2926 PAGE 467 6.5 Variances: The Architectural Control Committee may authorize variances from compliance with any of the architectural provisions of this Declaration, including restrictions upon height, size, floor area or placement of structures, or similar restrictions, when circumstances such as topography, natural obstructions, hardship, aesthetic or environmental consideration may require and neighboring properties will not be substantially affected in an adverse way. Such variances must be evidenced in writing by the Committee setting forth in detail the need for the variance, the rationale for granting it and any conditions imposed upon the granting of it. A copy of the variance shall be kept with the permanent records of the Committee and must be signed by at least three (3) members of the Committee before becoming effective. If such a variance is granted, no violation of the covenants, conditions and restrictions contained in this Declaration shall be deemed to have occurred with respect to the matter for which the variance was granted. The granting of such a variance shall not operate to waive any of the terms and provisions of this Declaration for any purpose except as to the particular lot and particular provision hereof covered by the variance, nor shall it affect in any way the Owner's obligation to comply with all governmental laws and regulations affecting his or her use of the lot including, but not limited to, zoning ordinances and lot set -back lines or requirements imposed by any governmental or municipal authority. ARTICLE VII ARCHITECTURAL AND USE RESTRICTIONS In addition to all of the covenants contained herein, the use of the property and each lot therein is subject to the following: 7.1 Use of Lot: No lot shall be occupied or used except for residential purposes by the owners, their tenants, and social guests. No tent, shack, trailer, mobilehome, motor home, boat recreational vehicle, camper, basement, garage, outbuilding or structure of a temporary character shall be used on any lot at any time as a residence, either temporarily or permanently. 7.2 No health care facilities operating as a business or charity shall be permitted in the project. 7.3 Nuisances: No noxious, illegal, loud, or seriously offensive activities shall be carried on upon any lot, or any part of the property, nor shall anything be done thereon which may be or may become a nuisance to, or which may in any way interfere with, the quiet enjoyment of each of the owners of his respective lot. 7.4 Vehicle Restrictions: No trailer, camper, mobile home, motor home, recreational vehicle, off -road vehicle, animal transportation vehicle, motorcycle, motorbike or motor driven cycle, commercial vehicle, truck (other than standard size pickup 24 VOL 900C: PAGE 468 NNW truck or standard size van), boat, inoperable automobile, or similar equipment shall be permitted to remain upon any area within the property, unless placed or maintained within an enclosed garage or carport. No off -road vehicles shall be used anywhere on the property for purposes of recreation. Commercial vehicles shall not include sedans (or standard size vans or pickup trucks) which are used both for business and personal use, provided that any signs or markings of a commercial nature on such vehicles shall be unobtrusive and inoffensive as determined by the Committee or Board. No noisy or smokey vehicles shall be operated on the property. No unlicensed motor vehicles shall be operated upon the property. Twenty -four (24) hours after notice has been personally delivered to the owner of a vehicle described in this section 7.4 by an agent of the Committee or Association or placed on the windshield of a vehicle, or seventy -two (72) hours after notice has been mailed to the address of the registered owner of a vehicle parked, stored, or maintained on the premises in violation of the provisions of this Declaration, the vehicle owner shall be deemed to have consented to the removal of said vehicle from the project, and the Association or its agents or employees shall have the authority to tow away and store any such vehicle, whether said vehicle shall belong to a lot owner, or his tenant, a member of his family, or his guest or invitee. Charges for such towing and storage shall be paid by the lot owner responsible or vicariously responsible for the presence of such vehicle. 7.5 Commercial Activity: No business, professional, or commercial activity of any kind (including garage or other sales more often than once per year) shall be conducted on any lot. 7.6 Storage in Common Area: Nothing shall be stored or disposed of in the common area without the prior consent of the Board. 7.7 Signs: Signs advertising lots for sale or rent may be displayed, one on a lot, without prior approval of the Committee or Board, provided that such signs are of reasonable and customary size. Such signs may also be displayed at such additional location or locations as shall be designated for such purpose by the Committee or Board. A modestly sized and tasteful, as determined in the sole discretion of the Committee or Board, sign designating the architect, general contractor and /or construction lender may also be placed without prior approval on any lot with a dwelling then being constructed thereon. The Committee may develop non - prejudicial rules allow- ing for the display of political signs. Except as expressly permitted by this section 7.7, no signs shall be displayed to the public view on any lot or on any portion of the property unless first approved by the Committee or Board. 7.8 Animals: No animals, birds, insects or reptiles of any kind shall be raised, bred or kept on any lot for any commercial purpose, unless approved in advance by the Board and unless such use complies with all applicable laws, ordinances and regulations 25 VOL 2 PAGE 469 • of all governmental entities. Notwithstanding the foregoing sentence, or any use permitted by law, no owner shall be permitted to keep any of the following on any lot: goats, pigs, sheep, horses, cows (or other bovine or equine animals), poultry, foxes, peacocks, or wild animals of any kind. No more than three (3) dogs may be kept at any one time on a lot except that puppies born of these animals may be kept in addition to the foregoing number for a period of not more than three (3) months following their birth. No more than three (3) cats may be kept on a lot at any one time, except for kittens born of theses animals and as described in the preceding sentence. All animals shall be appropriately confined within the lot of their owners. The Association may establish rules and regulations regarding access to and use of any common area by animals owned or maintained by any owner, tenant or guest. No owner shall allow any animal maintained on the owner's lot to roam in the common area or on any other portion of the project unless the animal is under direct control of a person capable of controlling the animal. An owner shall be responsible for any damage or injury caused by an animal maintained on the owner's lot. 7.9 Garbage and Refuse Disposal: All rubbish, trash and garbage shall be regularly removed from the lots, and shall not be allowed to accumulate thereon. Trash, garbage and other waste shall not be kept except in sanitary containers. All equipment for the storage or disposal of such materials shall be kept in a clean and sanitary condition, and shall be screened from view of neighboring lots, common areas and streets. 7.10 Radio and Television Antennas: No external antennas, towers, poles, dishes, or any structure to be used for the purpose of transmitting or receiving radio, television or similar signals with the exception of equipment installed by a duly licensed cable television franchisee, or its successors or assigns, shall be installed, affixed, mounted or constructed on the property so as to be visible to the public view or to another lot owner. No alteration to or modification of a central radio and /or television antenna system or cable television system, whichever is applicable, if developed by Declarant, or by a franchisee, and as maintained by the Association or by a franchisee shall be permitted, and no owner may be permitted to construct and /or use and operate his own external radio and /or television antenna or other electronic antenna without the prior consent of the Board. All citizens band and amateur broadcasting equipment shall be registered with the Board and shall not be used so as to interfere with any activities whatsoever of occupants of other lots. All fees for the use of any cable television system shall be borne by the respective lot owners, and not by the Association. 7.11 Clothes Lines: No exterior clothes lines shall be erected or maintained and there shall be no outside laundering or drying of clothes. 26 A 2926 PAGE 4 I O 7.12 Liability of Owners for Damage to Common Area: The owner of each lot shall be liable to the Association for all damage to the common area improvements (including landscaping) caused by such owner or the owner's agents, occupants, invitees, or animals, except for that portion of damage covered by any insurance carried by the Association. The responsible owner shall be charged with the cost of repairing such damage (including interest thereon) as described in section 5.1.A. 7.13 Leasing of Lots: No owner shall be permitted to lease his lot or any portion of a structure thereon for any period less than thirty (30) days. Any lease agreement shall be required to provide that the term of the lease shall be subject in all respects to the provisions of the Declaration, Articles and Bylaws and to all house rules and regulations adopted by the Board and Committee and that any failure of the lessee to comply with the terms of such documents shall be a default under the lease. All leases shall be required to be in writing. Other than the foregoing, there is no restriction in the right of any owner to lease his lot. All owners leasing or renting their lots shall promptly notify the Secretary of the Association in writing . of the names of all tenants and members of tenant's family occupying such lot and of the address and telephone number where such owner can be reached. 7.14 Common Area Parking: Parking in any spaces provided in the common area shall be pursuant to rules and regulations adopted by the Board. 7.15 Minimum Size: The dwelling on each lot shall have a minimum living area of not less than 1,750 square feet of floor area, excluding garages, patios, verandas, decks, open atriums and entryways, and appurtenant structures. The dwelling on each lot shall have an enclosed garage capable of storing not less than two full -sized American automobiles with at least 75 square feet of floor space to spare. 7.16 Minimum Setbacks and Sideyards: All dwellings and their garages shall be set back a minimum of 20 feet from the fronting street. Corner dwellings and garages shall be set back a minimum of 20 feet from the side street. All other dwellings and garages shall have a minimum sideyard of 10 feet. All dwellings and garages shall be set back at least 15 feet from the rear boundary. 7.17 Height Limitations: The maximum height of any structure constructed on a lot shall not exceed the maximum height for such a structure allowed by the City of Arroyo Grande in similar areas of the said City. Within said maximum limita- tion, the Architectural Control Committee shall, pursuant to its objectives as stated in Paragraph 6.1 of this Declaration, limit the heights of structures or portions of structures to be con- structed. The Committee may, whenever deemed reasonably necessary in its judgment in order to preserve a significant view from a neighboring lot (without a multi -story building becoming 27 voL 292 PAGE 4 (1 necessary on that neighboring lot in order to enjoy said view) limit the height of a building to a single story or to a particu- lar height dimension. 7.18 Architectural Style: The architectural style of every structure proposed for the property will be reviewed on a case -by -case basis with a view toward establishing an overall contemporary mix of Spanish, Ranch and Western architectural styles. No ultra- modern, outlandish or sharply contrasting style will be permitted. 7.19 Roofs: The minimum roof slope shall be 3:12. The maximum roof slope shall be 12:12. Flat roofs are prohibited. Roof overhangs shall be incorporated into designs, especially in conjunction with verandas and patio areas. All roofing material shall be Class "A" fire rated, such as clay tile, cement tile or similar types of hard surface roofing. Shingle, shake, composi- tion, asphalt shingle, rock, or built -up roofs will not be permitted. 7.20 Exterior Walls: No more than fifty (50) per cent of the exterior walls of any dwelling shall be covered with wood or simulated wood finish material. Reflective materials, except for hardware, shall be prohibited as exterior wall material. Cement plaster and unfinished stabilized adobe block shall be preferred exterior wall materials. Colors on exterior surfaces, including roofs, shall be subdued. Blue -white colors shall be avoided. Shades of white or brown, with warm overtones, shall be pre- ferred. The color palate for the property shall be in colors of natural materials which are present on the lots and adjacent natural areas and view sheds. 7.21 Windows and Window Coverings: Window frames shall be painted wood, dark bronze aluminum or dark color baked enamel. Skylight frames shall be painted to match adjacent building material. Brightly colored or strong geometric patterns for window coverings which are visible from the streets or other lots are prohibited. Awnings, shades, blinds, shutters and films, foils or coatings shall be subject to approval of the Committee. Stained and /or etched or otherwise colored glass shall be subject to approval of the Committee. 7.22 Fences: All fences constructed on the property shall be subject to prior approval of the Committee as to material, color, structure, height and location. As soon as is practicable, the Committee shall develop written guidelines stating preferences to assist lot owners in making their applications for approval. 7.23 Landscaping: The front yard of all lots and any side yard facing a public street shall be landscaped according to plans and specifications submitted for approval of the Committee prior to, or at the time of, submittal of plans and specifications for the construction of a dwelling on such lot. All such landscaping shall be completed not later than one year 28 V012926 PAGE 472 following occupancy of the dwelling. All trees planted shall be a minimum of 15 gallons and all shrubs a minimum of 5 gallons in size. The lot owner shall include in his development plans the planting of newly created banks or slopes in order to control erosion and to minimize the visual effect. Each lot shall have at least one tree of a type allowed by the City of Arroyo Grande on the street side of the dwelling, the location of which tree can be either within the six foot Street Tree and Public Utilities Easement or such other location as may be agreed upon by the Owner, the Committee and the City of Arroyo Grande. The Owner shall be solely responsible for the care, trimming, water- ing and other maintenance or replacement of such tree(s). Any such replacement shall require the approval of the Committee and the City of Arroyo Grande as to location, size and type of tree. All such trees shall be maintained so as to not substantially or unreasonably interfere, in the sole judgment of the Committees with a significant view from a neighboring dwelling. In the event that Owner should fail to perform such responsibilities, then the Association and /or the City of Arroyo Grande may perform same at said Owner's expense. 7.24 Utilities and External Fixtures: All utilities to structures on the lots shall be placed underground. All ducts, meters, air conditioning equipment, solar panels, water softening equipment and other mechanical equipment, including pipes, wiring and insulation associated with it shall be reasonably screened from view from public areas and neighboring lots. Noise from all such equipment shall be similarly screened. 7.25 Street Numbers and Lighting: Street numbers shall be posted for all dwellings in a manner that they shall be easily read from the street by day or night. All external lighting shall be constructed so that glare is directed away from public rights of way and neighboring windows. ARTICLE VIII GENERAL PROVISIONS 8.1 Enforcement: The Association, or any owner, or at the request of the Association or any owner, the City of Arroyo Grande or other public entity, shall have the right to enforce, by any proceeding at law or in equity, or by permitting processes, all restrictions, conditions, covenants, reservations, liens, and charges now or hereafter imposed by the provisions of this Declaration, the Articles and the Bylaws, and in any such court action shall be entitled to recover reasonable attorneys' fees as are ordered by Court. In the event of failure by the Association to reasonably maintain the common area, the City of Arroyo Grande, after reasonable notice to the Association, may perform such maintenance at the expense of the Association. Failure by the Association, or by any owner, or by the City of Arroyo Grande where permitted, to enforce any covenant or re- striction herein contained shall in no event be deemed a waiver of the right to do so thereafter. 29 a. 2926 PACE 473 8.2 Invalidity of Any Provision: Should any provision or portion hereof be declared invalid or in conflict with any law of the jurisdiction where this project is situated, the validity of all other provisions and portions hereof shall remain unaffected and in full force and effect. 8.3 Term: The covenants and restrictions of this Declaration shall run with and bind the property, and shall inure to the benefit of and shall be enforceable by the Association or the owner of any property subject to this Declaration, their respective legal representatives, heirs, successors, and assigns, for a term of thirty (30) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years, unless an instrument in writing, signed by a majority of the then owners of the lots, has been recorded within the year preceding the beginning of each successive period of ten (10) years, agreeing to change said covenants and restrictions in whole or in part, or to terminate the same. 8.4 Amendments: Prior to close of escrow on the sale of the first lot, Declarant may amend this Declaration, with the consent of the Department of Real Estate of the State of California. After sale of the first lot, this Declaration may be amended only by the affirmative vote (in person or by proxy) or written consent of members representing a majority of the total voting power of the Association, and a majority of the affirmative votes or written consent of members other than the Declarant, or where the two (2) class voting structure is still in effect, a majority of each class of membership. However, the percentage of voting power necessary to amend a specific clause shall not be less than the prescribed percentage of affirmative votes required for action to be taken under that clause. Any amendment must be certified in writing, executed and acknowledged by the President or Vice President of the Association and recorded in the Recorder's Office of the County of San Luis Obispo. No amendment shall adversely affect the rights of the holder of any mortgage of record prior to the recordation of such amendment. 8.5 Rights of First Lenders: No breach of any of the covenants, conditions and restrictions contained herein, nor the enforcement of any lien provisions herein, shall render invalid the lien of any first mortgage (meaning a mortgage with first priority over any other mortgage) on any lot made in good faith and for value, but all of said covenants, conditions and restrictions shall be binding upon and effective against any owner whose title is derived through foreclosure or Trustee's Sale, or otherwise. Notwithstanding any provision in this Declaration to the contrary, first lenders shall have the following rights: A. Copies of Project Documents: The Association shall make available to lot owners and first lenders, and to holders, 30 VOL 2 926 PAGE 474 insurers or grantors of any first mortgage, current copies of the Declaration, Bylaws, Articles or other rules concerning the project and the books, records and financial statements of the Association. "Available" means available for inspection and copying, upon request, during normal business hours or under other reasonable circumstances. B. Audited Statement: Any holder, insurer or guarantor of a first mortgage shall be entitled, upon written request, to an audited financial statement for the immediately preceding fiscal year, free of charge to the party so requesting. Such statement shall be furnished within a reasonable time following such request. C. Notice of Action: Upon written request to the Association, identifying the name and address of the eligible mortgage holder or eligible insurer or guarantor, and the lot number or address, such eligible mortgage holder or eligible insurer or guarantor will be entitled to timely written notice of: (1) Any condemnation loss or any casualty loss which affects a material portion of the project or any lot on which there is a first mortgage held, insured, or guaranteed by such eligible mortgage holder or eligible insurer or guarantor, as applicable; (2) Any default in performance of obligations under the project documents or delinquency in the payment of assessments or charges owed by an owner of a lot subject to a first mortgage held, insured or guaranteed by such eligible mortgage holder or eligible insurer or guarantor, which remains uncured for a period of sixty (60) days; (3) Any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Association; (4) Any proposed action which would require the consent of a specified percentage of eligible mortgage holders as specified in section 8.5.D. The Association shall discharge its obligation to notify eligible holders or eligible insurers or guarantors by sending written notices required herein to such parties, at the address given on the current request for notice, in the manner prescribed by section 8.13. D. Consent to Action: (1) Except as provided by statute or by other provision of the project documents in case of substantial destruction or condemnation of the project, and further excepting any reallocation of interests in the common area which might occur pursuant to any plan of expansion or phased development: (a) The consent of owners of lots to which at least sixty -seven percent (67%) of the votes in the Association are allocated and the approval of eligible mortgage holders holding mortgages on lots which have at least sixty -seven percent (67%) of the votes of lots subject to eligible holder mortgages, shall be required to terminate the legal status of the project as a planned unit development project; 31 VOL 2 PAGE 475 (b) The consent of owners of lots to which at least sixty -seven percent (67%) of the votes in the Association are allocated and the approval of eligible mortgage holders holding mortgages on lots which have at least fifty -one (51%) of the votes of the lots subject to eligible holder mortgages, shall be required to add or amend any material provisions of the project documents which establish, provide for, govern or regulate any of the following: (i) voting; (ii) assessments, assessment liens or subordination of such liens; (iii) reserves for maintenance, repair and replacement of the common area; (iv) insurance or fidelity bond; (v) rights to use of common area; (vi) responsibility for maintenance and repair of the several portions of the project; (vii) expansion or contraction of the project or the addition, annexation or withdrawal of property to or from the project (except as provided in paragraph D(1) above; (viii) boundaries of any lot; (ix) the interests in the common area; (x) convertability of lots into common areas or of common areas into lots; (xi) leasing of lots; (xii) imposition of any right of first refusal or similar restriction on the right of a lot owner to sell, transfer, or otherwise convey his or her lot; (xiii) any provisions which are for the express benefit of mortgage holders, eligible mortgage holders, or eligible insurers or guarantors of first mortgages on lots; (c) An addition or amendment to such document shall not be considered material if it is for the purpose of correcting technical errors, or for clarification only. An eligible mortgage holder who receives a written request to approve additions or amendments who does not deliver or post to the requesting party a negative response within thirty (30) days shall be deemed to have approved such request. (2) Unless the holder(s) of at least two - thirds (2/3) of the first mortgages (based upon one (1) vote for each first mortgage or deed of trust owned), or two- thirds (2/3) of the owners (other than Declarant) of the individual lots in the project have given their prior written approval, the Association and /or the owners shall not be entitled to: (a) By act or omission, seek to abandon or terminate the project, or abandon, partition, subdivide, encumber, sell or transfer the common area or property owned directly or indirectly by the Association (the granting of easements for public utilities or for other public purposes consistent with the intended use of such property shall not be deemed a transfer within the meaning of this clause) except for abandonment or termination provided by law in the case of substantial destruction by fire or other casualty, or in the case of a taking by condemnation or eminent domain; or (b) Change the method of determining the obligations, assessments or dues or other charges which may be levied against an owner; or 32 VOL 2 PAGE 476 (c) By act or omission, change, waive or abandon any scheme of regulations, or enforcement thereof, pertaining to the architectural design or the exterior appearance of lots, the exterior maintenance of lots, the maintenance of the common area walks or fences and driveways, or the upkeep of landscaping in the common area; or. (d) Use hazard insurance proceeds for losses to any Association common property for other than the repair, replacement or reconstruction of such common area property. E. Right of First Refusal: The Association shall not impose a right of first refusal or similar restriction on the right of a lot owner to sell, transfer, or otherwise convey his or her lot. F. Contracts: Any agreement for professional management of the project, or lease or any other contract providing for services of the developer, sponsor, or builder, may not exceed one (1) year. Any such agreement, contract, or lease, including a management contract entered into prior to passage of control of the Board to lot purchasers must provide for termination by either party for cause on ten (10) days' written notice, or without cause and without payment of a termination fee or penalty on thirty (30) days' or less written notice. G. Reserves: Association dues or charges shall include an adequate reserve fund for maintenance, repairs, and replacement of those improvements which the Association is obligated to maintain that must be replaced on a periodic basis, and the assessments therefor shall be payable in regular installments rather than by special assessments. H. Priority of Liens: Any first lender who obtains title to a lot pursuant to the remedies provided in the mortgage or foreclosure . of the mortgage will not be liable for such lot's unpaid assessments and fees, late charges, fines or interest levied in connection therewith which accrue prior to the acquisition of title to such lot by the mortgagee (except for claims for a pro rata share of such assessments or charges resulting from a pro rata reallocation of such assessments or charges to all project lots including the mortgaged lot, and except for assessment liens recorded prior to the mortgage). I. Distribution of Insurance or Condemnation Proceeds: No owner or any other party shall have priority over any rights of first lenders pursuant to their mortgages in the case of a distribution to lot owners of insurance proceeds or condemnation awards for losses to or taking of common area property. J. Restoration or Repair: Any restoration or repair of the project, after a partial condemnation or damage due to an insurable hazard, shall be performed substantially in accordance with the Declaration and the original plans and specifications, unless other action is approved by eligible mortgage holders 33 rrll ��++ VOL 2 926 PAGE 477 holding mortgages on lots which have at least fifty -one percent (51%) of the votes of lots subject to eligible holder mortgages. K. Termination: Any election to terminate the legal status of the project after substantial destruction or a substantial taking in condemnation of the project property must require the approval of eligible mortgage holders holding mortgages on lots which have at least sixty -seven percent (67%) of the votes of lots subject to eligible holder mortgages. L. Reallocation of Interests: No reallocation of interests in the common area resulting from a partial condemnation or partial destruction of the project may be effected without the prior approval of eligible mortgage holders holding mortgages on all remaining lots whether existing in whole or in part, and which have at least sixty -seven percent (67%) of the votes of such remaining lots subject to eligible holder mortgages. M. Termination of Professional Management: When professional management has been previously required by an eligible mortgage holder or eligible insurer or guarantor, whether such entity became an eligible mortgage holder or eligible insurer or guarantor at that time or later, any decision to establish self management by the Association shall require the prior consent of owners of lots to which at least sixty -seven percent (67%) of the votes in the Association are allocated and the approval of eligible mortgage holders holding mortgages on lots which have at least sixty -seven percent (67%) of the votes of lots subject to eligible holder mortgages. N. Payment of Taxes or Insurance by Lenders: First lenders may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge against the common area property and may pay overdue premiums on hazard insurance policies, or secure new hazard insurance coverage on the lapse of a policy, for such common area property and first lenders making such payment shall be owed immediate reimbursement therefor from the Association, provided that said lender(s) have given notice to the Association prior to the making of such payment(s) and the Association has failed to pay the same. 8.6 Owner's Right and Obligation to Maintain and Repair: Each lot owner shall, at his sole cost and expense, maintain and repair his lot and all improvements and landscaping thereon, keeping the same in good condition. Maintenance shall include such weed control and other fire prevention measures as may be required by the City of Arroyo Grande or other governmental agency or by the Association under its fuel management program as described in section 5.1.A. In the event an owner of any lot fails to maintain his lot and the improvements thereon as required herein, the Association's agents may, after notice and a hearing as provided in the Bylaws, enter the lot and perform the necessary 34 vk 2926 PAGE 4 t8 maintenance. The cost of such maintenance shall immediately be paid to the Association by the owner of such lot, together with interest at the rate of twelve percent (12%) per annum (but not to exceed the maximum interest rate authorized by law) from the date the cost was incurred by the Association until the date the cost is paid by the owner. 8.7 Damage or Destruction: If any common area improvement is damaged or destroyed by fire or other casualty, the improvement shall be repaired or reconstructed substantially in accordance with the original as -built plans and specifications, modified as may be required by applicable building codes and regulations in force at the time of such repair or reconstruction and subject to such alterations or upgrades as may be approved by the Architectural Control Committee, unless either of the following occurs: (1) The cost of repair or reconstruction is more than fifty percent (50%) of the current replacement costs of all common area improvements, available insurance proceeds are not sufficient to pay for at least eighty -five percent (85%) of the cost of such repairs or reconstruction, and three - fourths (3/4) of the total voting power of the Association residing in members and their first lenders vote against such repair and reconstruction; or (2) Available insurance proceeds are not sufficient to substantially repair or reconstruct the improvement within a reasonable time as determined by the Board, a special assessment levied to supplement the insurance fails to receive the requisite approval (if such approval is required) as provided in section 4.4, and the Board, without the requirement of approval by the owners, is unable to supplement the insurance by borrowing on behalf of the Association sufficient monies to enable the improvements to be substantially repaired or reconstructed within a reasonable time. If the improvement is to be repaired or reconstructed and the cost for repair or reconstruction is in excess of $20,000, the Board shall designate a construction consultant, a general contractor, and an architect for the repair or reconstruction. All insurance proceeds, Association monies allocated for the repair or reconstruction, and any borrowings by the Association for the repair or reconstruction shall be deposited with a commercial lending institution experienced in the disbursement of construction loan funds (the "depositary ") as selected by the Board. Funds shall be disbursed in accordance with the normal construction loan practices of the depository that require as a minimum that the consultant, general contractor and architect certify within ten (10) days prior to any disbursement substantially the following: That all A. h work completed request for disbursementhasbeendo nein compliance d with o the uch approved plans and specifications; B. That such disbursement request represents monies which either have been paid by or on behalf of the construction consultant, the general contractor or the architect and /or are 35 VOL 294..6 PAGE r6 justly due to contractors, subcontractors, materialmen, engineers, or other persons (whose name and address shall be stated) who have rendered or furnished certain services or materials for the work and giving a brief description of such services and materials and the principle subdivisions or categories thereof and stating the progress of the work up to the date of said certificate; C. That the sum then requested to be disbursed plus all sums previously disbursed does not exceed the cost of the work insofar as actually accomplished up to the date of such certificate; D. That no part of the cost of the services and materials described in the foregoing paragraph A has been or is being made the basis for the disbursement of any funds in any previous or then pending application; and E. That the amount held by the depository, after payment of the amount requested in the pending disbursement request, will be sufficient to pay in full the costs necessary to complete the repair or reconstruction. If the cost of repair or reconstruction is $20,000 or less, the Board shall disburse the available funds for the repair and reconstruction under such procedures as the Board deems appropriate under the circumstances. If the improvement is not repaired or reconstructed in accordance with the foregoing, any insurance proceeds available for the repair or reconstruction of the improvement shall be disbursed among all owners and their respective mortgagees in the same proportion that the owners are assessed, subject to the rights of the owners' mortgagees. 8.8 Damage and Destruction Affecting Lots - Duty to Rebuild: If all or any portion of any improvement on any lot is damaged or destroyed by fire or other casualty it shall be the duty of the owner of the lot to rebuild, repair or reconstruct the improvement in a manner which will restore it substantially to its appearance and condition immediately prior to the casualty, subject to such alterations as may be approved by the Architectural Control Committee. The owner of any damaged improvement on any lot shall commence reconstruction within three (3) months after the damage occurs and complete reconstruction within six (6) months after the damage occurs, unless prevented by causes beyond his reasonable control. 8.9 Condemnation. If all or any part of a lot (except the common area) is taken by eminent domain, the award shall be disbursed to the owner of the lot, subject to the rights of the owner's mortgagees. If the taking renders the lot uninhabitable, the owner shall be divested of any further interest in the project, including membership in the Association, and the interests of the remaining owners shall be adjusted accordingly. 36 VOL 29� PAGE 4b0 If all or any part of the common area is taken by eminent domain, the proceeds of condemnation shall be used to restore or replace the portion of the common area affected by condemnation if restoration or replacement is possible, and any remaining funds, after payment of any and all fees and expenses, incurred by the • Association relating to such condemnation, shall be distributed among the owners in the same proportion as such owners are assessed, subject to the rights of mortgagees. If necessary, the remaining portion of the project shall be resurveyed to reflect such taking. The Association shall participate in the negotiations, and shall propose the method of dividing the proceeds of condemnation, where lots are not valued separately by the condemning authority or by the court. The Association shall represent the lot owners in any condemnation proceedings or in negotiations, settlements and agreements with the condemning authority for acquisition of the common area, or part thereof. 8.10 Limitation of Restrictions on Declarant: Declarant is undertaking the work of construction of a planned development subdivision and incidental improvements upon the property. The • completion of that work and the sale, rental, and other disposal of the lots is essential to the establishment and welfare of the property as a residential community. In order that said work may be completed and the property be established as a fully occupied residential community as rapidly as possible, nothing in this Declaration shall be understood or construed to: A. Prevent Declarant, its contractors, or subcontractors from doing on the property or any lot, whatever is reasonably necessary or advisable in connection with the completion of the work; or B. Prevent Declarant or its representatives from erecting, constructing and maintaining on the property (except upon lots owned by others), such structures as may be reasonable and necessary for developing the property as a residential community and disposing of the same by sale, lease or otherwise; or C. Prevent Declarant from conducting on the property (except upon lots owned by owners) its business of completing the work and of establishing a plan of residential ownership and of disposing of said property in lots by sale, lease or otherwise; or D. Prevent Declarant from maintaining such sign or signs on the property (except upon lots owned by others) as may be necessary for the sale, lease or disposition thereof. The foregoing rights of Declarant shall terminate upon sale of Declarant's entire interests in the project or five (5) years after the date of recordation of the deed of the first lot to be sold in the project; whichever occurs first. So long as Declarant, its successors and assigns, owns one (1) or more of the lots described herein Declarant, its successors and assigns, 37 VOL 2926 PAGE 481 shall be subject to the provisions of this Declaration. Declarant shall make reasonable efforts to avoid disturbing the use and enjoyment of lots and the common area by their owners, while completing any work necessary to said lots or common area. 8.11 Termination of Any Responsibility of Declarant: In the event Declarant shall convey all of its rights, title and interest in and to the property to any partnership, individual or individuals, corporation or corporations, then and in such event, Declarant shall be relieved of the performance of any further duty or obligation hereunder, and such partnership, individual or individuals, corporation or corporations, shall be obligated to perform all such duties and obligations of the Declarant. 8.12 Owners' Compliance: Each owner, tenant or occupant of a lot shall comply with the provisions of this Declaration, and (to the extent they are not in conflict with the Declaration) the Articles and Bylaws, and the decisions and resolutions of the Association or Board, or the Architectural Control Committee, as lawfully amended from time to time. Failure to comply with any such provisions, decisions, or resolutions shall be grounds for an action (1) to recover sums due, (2) for damages, (3) for injunctive relief, (4) for costs and attorneys fees, or (5) any combination of the foregoing. All agreements and determinations lawfully made by the Association in accordance with the voting percentages established in this Declaration, or in the Articles or the Bylaws, shall be deemed to be binding on all lot owners, their successors and assigns. 8.13 Notices: Any notice permitted or required by the Declaration, Articles or Bylaws may be delivered personally or by mail. If delivery is by mail, it shall be deemed to have been delivered seventy -two (72) hours after a copy of the same has been deposited in the United States mail, first class, certified or registered, postage prepaid, addressed to the person to be notified at the current address given by such person to the Secretary of the Board or addressed to the unit of such person if no address has been given to the Secretary. 8.14 Special Provisions Relating to Enforcement of Declarant's Obligation to Complete Common Area Improvements: Where any common area improvements in the project have not been completed prior to the issuance of the public report, and where the Association is obligee under a bond or other arrangement ( "Bond ") to secure performance of the commitment of Declarant to complete the improvements, the Board shall consider and vote on the question of action by the Association to enforce the obligations under the Bond with respect to any improvement for which a Notice of Completion has not been filed within sixty (60) days after the completion date specified for that improvement in the planned construction statement appended to the Bond. If the Association has given an extension in writing for the completion of any common area improvement, the Board shall consider the vote 38 VOL 2926 PAGE 482 on the aforesaid question if a Notice of Completion has not been filed within thirty (30) days after the expiration of the extension. A special meeting of members of the Association for the purpose of voting to override a decision by the Board not to initiate action to enforce the obligations under the Bond or on the failure of the Board to consider and vote on the question, shall be held not less than thirty -five (35) days nor more than forty -five (45) days after receipt by the Board of a petition for such meeting signed by members representing five percent (5%) or more of the total voting power of the Association. A vote of a majority of the voting power of the Association residing in members other than Declarant to take action to enforce the obligations under the Bond shall be deemed to be the decision of the Association and the Board shall thereafter implement this decision by initiating and pursuing appropriate action in the name of the Association. 8.15 Fair Housing: No owner shall, either directly or indirectly, forbid or restrict the conveyance, encumbrance, leasing, or mortgaging, or occupancy of his lot to any person of a specified race, sex, adulthood, marital status, color, religion, ancestry, handicap, or national origin. 8.16 FHA /VA Approval: As long as there is a Class B membership, the following acts will require the prior approval of the Federal Housing Administration or the Veteran's Administration: Annexation of additional properties, or dedication of common areas. 8.17 Binding Arbitration: In case of any claim or dispute the Declarant, general contractor, or broker, or their agents, or employees, on the one hand, and the owner(s), on the other hand, which claim or dispute relates to the rights and /or duties of the parties under the project documents, or relates to the design of the project or any part thereof (except for disputes relating to alleged common area deficiencies), the procedure shall be as follows: The aggrieved party or parties shall notify the other party or parties of the grievance, in writing. When such a notice is received by Declarant, it shall promptly respond with an investigation, meeting, discussion, or other action reasonably appropriate to the circumstances. Appropriate action shall include, without limitation, prompt communication between the aggrieved party or parties, and a proposed course of action to resolve the problem. All parties involved in the matter shall negotiate in a good faith attempt to amicably resolve the problem. If the parties are unable to resolve the problem within a reasonable period of time (not to exceed ninety (90) days after the first notice of claim of dispute) the matter shall be submitted to binding arbitration pursuant to the rules of the American Arbitration Association, provided that if the dispute or claim involves a claim not in excess of the jurisdictional limit of the Small Claims Court, the lot owner shall have the option of taking the matter to Small Claims Court in lieu of binding arbitration. VOL 2926 PAGE 4 39 IN WITNESS WHEREOF, the undersigned, being the Declarant herein, has executed this Declaration this t tau rA day of �f a 0o�vn i4, . 19 $(, . OTTSE INC., A California Corporation BY: L9nL4 at,., . hs Its J STATE OF CALIFORNIA SS. COUNTY OF SAN LUIS OBISPO On this /02 day ofd , 19 C, , before me, the undersigned, a Notary Publ4c in and for said County and State, personally appeared p.vA✓6..GCG personally known to me or proved to me on the basis of satisfactory evidence to be the � - T-ti of the corporation that executed the within Instrument, and acknowledged to me that such corporation executed the within instrument pursuant to its by -laws or a resolution of its board of directors. GL • LeGt -CGS Notary PIA. ic, State o Ca i or a CCRDUP /A • 10/28/86 rt OFFICIAL SF,A DEBORAH A. COURTNEY 4 NOTARY PUBLIC • CALIFORNIA `' SAN LUIS OBISPO COUNTY My Comm. Expires Oct 24, 1989 4 0 • VOL 2926 PAGE 484 / / .,e/ ¢¢ i 1 • i \� / / Cam MATCH LINE t.... , / 126 12T ! 1 i 20 1 -- ^-mot- 11,\_ — _ AllIF Trost 1138 711W411111111‘11114 1 lir CR / AC Wm- / 134 / P, / / 133 130 I 5 0 90 y / • - A 1 to 400g0 4 ."- saes i 87 all . CALLE CARMAN 410 \ T Pt 1 95 el 96 A 83 o t \ 70 IINHN N. ■ .�. 82 al, IL 10 if 80 \ • se no. P \ o e ~ • e 66 \ o • t_ 79 \ 11 10 4 O ♦ p J 60 N 1 v t... t,». \ T . «e la * non WO' 2 0 — 700 a -3oo wwN 4 . IC MC. • • a) EXHIBIT A o '..°^ ' DRAINAGE PLAN • IS * Ono » .. Il e TRACT 1132 • �_•� Caws Tnt..e� °ntlt wain TAYLOR i MCC. INC rasa et_e. cams Stint 1 of 2 4)0 2F .. r05 . • un, L ,_ J p . ne• I ]D' 4MIM JA MES WAY Mae Cams Voce 1132 Tract Tr. 1132 OMmN]- - 0MM•«3 . 30 • . LOT 136 Ibt4 110 112 4 $ 109 i la •-• b•ct 1102 o 108 A\ D I••Ef0' 107 p� • 10 zoo aoo i - 1 -- -- ] 106 ' Co-v'°° co 29 °' ylA PEA -... • 105 28 \ • 0 m 118 OS oz 104 1 1\ y r � m I 119 103 1 ....-• `. 24 120 o 102 121 ` •`*1 Ma r �� 23 s ` N Mm,. 1 _� t / it 101 i 2 I ,.1. D.. all ial -- _ 124 • T.M. Cu mvv�l T Ao 2 1 CUERDA 12 CORTE I I, 100 — 1 �' Acm i cM. MM LOT _ - �I ' ra21.: .. ••••• 135 __ 99 1 26 1 127 I \ —L 1 20 ;t; M r • 99 �` RATCN LINE t wy, r '. r 7 i r • • r i?R EXHIBIT A G AM.IIM In • DRAINAGE PLAN O DM NIM■ SIMI• Moo M•MM« MM • SINN'] D.M. •. 210 R. TRACT 1132 - -- 20.0 Min U«• ]'r'M•M DI•]I --- DMMMs ,r...rr DIVA GAMS&TAYLOR A�soC.,we VOL 2OA. PAGE o... imam.... A mps rw CMA.•r RI.••] P M! P M —. \,a EXHIBIT B All lots are burdened by a six foot wide street tree and public utilities ease- ment (6' S.T. d P.U.E.). The following is a summary of other easements, special set back lines and access denials as shown'on the final map for Tract 1132. Lot Number Burdened By Benefitted By 1 10 Ft. Sewer Esmt.; 20 Ft. Sewer, Class A Drainage d Private Driveway Esmt. 2 10 Ft. Class A Drainage Esmt.; 20 Ft. Sewer, 20 Ft. Sewer, Class A Drainage , Class A Drainage d Private Driveway Esmt. & Private Driveway Esmt. across Lot 1 3 10' Class 8 Drainage Esmt. 20 Ft. Sewer, Class A Drainage 8 Private Driveway Esmt. across Lots 1 8 2 4 10' Class A Drainage Esmt. 5 20 Ft. Set -Back Line for Gas Co.; 10 Ft. Class A Drainage Esmt. 6,7,8 20 Ft. Set -Back Line for Gas Co.; 15 Ft. Class 8 Drainage Esmt. 9 11.75 Ft. 8 20 Ft. Set -Back Lines for Gas Co.; 15 Ft. Class B Drainage Esmt. 10 28.25 Ft. Set -Back Line 10 Ft. Private Sewer for Gas Co.; 16.5 Ft. Esmt. across Lot 11 Gas Esmt.; 15 Ft. Class B Drainage Esmt. 11 10 Ft. Private Sewer Esmt. for 20 Ft. Sewer & Private Lot 10; Driveway Esmt. across 15 Ft. Class B Drainage Esmt. Lots 12,14 8 15 12 1/2 20 Ft. Sewer & Private 20 Ft. Sewer d Private Driveway Esmt. Driveway Esmt. across Lots 14, & 15; 1/2 20 Ft. Sewer d Private Driveway Esmt. across Lot 15 13 N/A 14 1/2 20 Ft. Sewer 8 Private 1/2 20 Ft. Sewer & Driveway Esmt. Private Driveway Esmt. across Lot 15 VOL 2926 PAGE 487 Exhibit B Page 2 Lot Number Burdened By Benefitted By 15 1/2 20 Ft. Sewer & Private 1/2 20 Ft. Sewer & Driveway Esmt.; 20 Ft. Sewer Private Driveway Esmt. d Private Driveway Esmt.; across Lots 12 d 14 20 Ft. Sewer Esmt; 15 Ft. Class B Drainage Esmt. 16 20 Ft. Sewer Esmt.; 10 Ft. Class 8 Drainage Esmt. 17 b 18 20 Ft. Sewer Esmt. 19 10 Ft. Class B Drainage Esmt. • 20 20 Ft. Class A Drainage Esmt.; 10 Ft. Class B Drainage Esmt. 21 25 Ft. x 25 Ft. Sewer Esmt; 20 Ft. Sewer Esmt.; 10 Ft. Class 8 Drainage Esmt. 22 10 Ft. Class B Drainage Esmt. 23 N/A 24,25,26 10 Ft. Class 8 Drainage Esmt. 27,28,29 N/A 30 6 Ft. Homeowners' Association Fence Esmt.; Access denied to James Way 31 6 Ft. Homeowners' Association Fence Esmt.; Access denied to James Way & Rancho Parkway 32 through 41 6 Ft. Homeowners' Association Fence Esmt.; Access denied to Rancho Parkway 42 through 47 10 Ft. Class B Drainage Esmt. 48 10 Ft. Class B Drainage Esmt. 10 Ft. Private Sewer Esmt. across Lot 135 49 10 Ft. Class B Drainage Esmt. 50 10 Ft. Class B Drainage Esmt.; 6 Ft. Homeowners' Association Fence Esmt.; Access denied to Rancho Parkway 51 through 55 6 Ft. Homeowners' Association Fence Esmt.; Access denied to Rancho Parkway n VOL 29 PAGE 488 . Exhibit B Page 3 Lot Number, Burdened By Benefitted By 56 10 Ft. Class A Drainage Esmt.; 6 Ft. Homeowners' Assoc. Fence Esmt.; Access denied to Rancho Parkway 57 10 Ft. Sewer Esmt.; 6 Ft. Homeowners' Assoc. Fence Esmt.; Access denied to Rancho Parkway 58 through 62 6 Ft. Homeowners' Assoc. Fence Esmt.; Access denied to Rancho Parkway 63 N/A 64 through 68 10 Ft. Class B Drainage Esmt. 69 through 82 N/A 0 83 10 Ft. Private Sewer Esmt. across Lot 94 84 10 Ft. Class B Drainage Esmt.; 10 Ft. Private Sewer 10 Ft. Private Sewer Esmt. for Esmt. across Lot 94 Lot 86 85 N/A 86 10 Ft. Private Sewer Esmt. across Lots 84 8 94 87 10 Ft. Private Sewer Esmt. across Lot 93 88,89,90 • N/A 91 10 Ft. Class B Drainage Esmt. 92 N/A 93 10 Ft. Private Sewer Esmt. for Lot 87; 10 Ft. Class B Drainage Esmt. 94 10 Ft. Private Sewer Esmt. for Lots 84 d 86; 10 Ft. Class B Drainage Esmts.; 10 Ft. Private Sewer Esmt. for Lot 83 95 10 Ft. Class B Drainage Esmt. 96 through 100 N/A 101 10 Ft. Private Sewer Esmt. for 10 Ft. Private Sewer Lot 102 Esmt. across Lot 124 VOL 2926 PAGE 489 • Exhibit 8 Page 4 Lot Number Burdened By Benefitted By 102 10 Ft. Private Sewer Esmt. across Lots 101 d 124 103 & 104 N/A 105 JO Ft. Private Sewer Esmt. across Lot 117 106 10 Ft. Private Sewer Esmt. across Lot 116 107 • 10 Ft. Private Sewer Esmt. across Lot 115 108 N/A 109 d 110 15 Ft. Private Driveway Esmt. across Lots 111, 112, 113 111 15 Ft. Private Driveway Esmt. for Lots 109, 110, 112 & 113 112 15 Ft. Private Driveway Esmt. 15 Ft. Private Driveway for Lots 109, 110 b 113 Esmt. across Lot 111 113 15 Ft. Private Driveway Esmt. 15 Ft. Private Driveway for Lots 109 d 110 Esmt. across Lots 111 & 112 114 10 Ft. Class B Drainage Esmt. 115 • 10 Ft. Class B Drainage Esmt.; 10 Ft. Private Sewer Esmt. for Lot 107 116 10 Ft. Class B Drainage Esmt.; 10 Ft. Private Sewer Esmt. for Lot 106 117 10 Ft. Class 8 Drainage Esmt; 10 Ft. Private Sewer Esmt. for Lot 105 118 & 119 N/A 120 through 123 10 Ft. Class 8 Drainage Esmt. 124 10 Ft. Class 8 Drainage Esmt.; 10 Ft. Private Sewer Esmt. for Lots 101 & 102 125,126,127 10 Ft. Class B Drainage Esmt. 128 through 132 10 Ft. Class B Drainage Esmts. /� [� vni 2f 2R parr don Exhibit B Page 5 Lot Number Burdened By Benefitted By 133 S 134 N/A 135 25 Ft. Gas Esmt.; 10 Ft. Private Sewer Esmt. for Lot 48; 10 Ft. Public Utility Esmt.; Access denied•to Rancho Parkway 136 10 Ft. Public Utility Esmt.; 1,013 Sq. Ft. Class A Drainage Esmt. NOTE: Class A Drainage Easements were dedicated to the City of Arroyo Grande and accepted by said City. Class 8 Drainage Easements were dedicated to the City and rejected without prejudice. Sewer easements not designated as "Private" were dedicated to the City and accepted. Private Sewer Easements are for the benefit of the Lots designated. Gas Line Set -Back Lines on Lots 9 d 10 are for the benefit of Southern California Gas Company. See the final map for Tract 1132 for additional restrictions on Lots 9 d 10. 85052sum.mbm END OF DOCUMENT -as VOL 2926 PAGE 491 •-, ._...1