BAYVIEW ESTATES CC&R REVISI0NS – MASTER

August 16, 2016

CURRENT BAYVIEW ESTATES RECORDED CC&RS

Incorrect in Manderley Docs Correct in Recorded Docs

NEW

NUM

PROPOSED REVISONSDeleted TextOriginal Text

New Text

COMMENTS,SOURCE, VOTE,

ETC

SECTION 1: DEFINITIONS

1.1 The "Articles" mean the Articles of Incorporation of the Association and their amendments.

1.1SECTION 1: DEFINITIONS

The "Articles" mean the Articles of Incorporation of the Association and their amendments.

NO CHANGE

1.2An “Assigns” is an individual to whom property is or will be transferred by conveyance.

ADDED DEFINITION

1.3An “Appurtenance” means a right, privilege or improvement that belongs to and passes with a principal property.

ADDED DEFINITION

1.2 The "Association" means the ARROYO GRANDE - BAYVIEW ESTATES HOMEOWNERS ASSOCIATION, INC., a California nonprofit mutual benefit corporation, its successors and assigns.

1.4The "Association" means the ARROYO GRANDE - BAYVIEW ESTATES HOMEOWNERS ASSOCIATION, INC., a California nonprofit mutual benefit corporation, its successors and assigns.

NO CHANGE

Renumbered

1.3 The "Association Rules" mean the rules and regulations regulating the use and enjoyment of the Property adopted by the Board of Directors from time to time.

1.5An "Association Rule" (Operating Rule) means a regulation adopted by the Board of Directors that applies generally to the management and operation of the common interest development or the conduct of the business and affairs of the association or regulates the use and enjoyment of the Common Property.

NO CHANGE OF INTENT

Edited for clarity

Renumbered

1

1.4 The "Board of Directors" or "Board" means the Board of Directors of the Association. 1.6

The "Board of Directors" or "Board" means the Board of Directors of the Association.

NO CHANGERenumbered

1.5 The "By-laws" mean the By-laws of the Association and their amendments. 1.7

The "By-laws" mean the By-laws of the Association and their amendments.

NO CHANGERenumbered

1.8A “Common Interest Development” (CID) is a residential community in which individuals own their lots (Separate Interests) and share part ownership in common property.

ADDED DEFINITION

1.9Covenants, Conditions and Restrictions (CC&Rs) means the legal, recorded, documents that specify the conditions of ownership in a planned community such as Bayview Estates.

ADDED DEFINITION

1.6 The "Common Area" means all roads and all real property owned by the Association for the common use and enjoyment of the Owners and shall include Lot 52 as shown upon the Tract Map.

1.10The "Common Area" means all roads and all real property owned by the Association for the common use and enjoyment of the Owners and shall include Lot 52 as shown upon the Tract Map.

NO CHANGE

Renumbered

1.11“Conveyance” means the transfer of an ownership interest in real property from one party to another.

ADDED DEFINITION

1.12A “Covenant” means an agreement or a pledge, such as these Declarations, to do or refrain from doing something. A covenant, “runs with the land”, cannot be separated from the title and is thus binding on all future owners.

ADDED DEFINITION

1.7 The "County" means the County of San Luis Obispo, the County in which the property is located.

1.13The "County" means the County of San Luis Obispo, the County in which the property is located.

NO CHANGE

Renumbered1.8 The "Declaration" means this Amended and

Restated Declaration of Covenants, Conditions and Restrictions and its amendments, modifications or supplements.

1.14The "Declaration" means this Amended and Restated Declaration of Covenants, Conditions and Restrictions and its amendments, modifications or supplements.

NO CHANGE

Renumbered

1.15An “Equitable Servitude” (Agreed to Restrictions) means an agreement, such as these Declarations, between two or more parties that limits the use of property and are,

ADDED DEFINITION

2

by law, presumed to be enforceable. An equitable servitude benefits and burdens the original parties to the agreement as well as their successors and assigns, and thus “runs with the land”.

1.16An “Estoppel Certificate” means a document used to establish facts and financial obligations.

ADDED DEFINITION

1.17A "Family" means two or more persons related through blood, marriage or legal adoption; or a number of unrelated persons not to exceed the number of bedrooms in the dwelling, who jointly occupy and have equal access to all areas of a dwelling unit and who function together as an integrated economic unit.

ADDED DEFINITION Commonly used civil code (San Diego).Davis-Sterling.comReasonable restrictions allowed.

1.18A “Guarantor” is means a one who promises to pay another’s debt or other financial obligation.

ADDED DEFINITION

1.19“Hypothecate” means to pledge money for a specific purpose ADDED DEFINITION

1.20“Liberal Construction” means to take a document's deemed or stated purpose into account when interpreting a document in addition to the actual words and phrases used in it .

ADDED DEFINITION

1.9 "Lot" means any plot of land numbered 1 through 51, inclusive, as shown upon the Tract Map.

1.21A "Lot" means any plot of land numbered 1 through 51 inclusive, as shown upon the Tract Map, including all structures and improvements appertenant to it.

NO CHANGE OF INTENT.Edited for Clarity

Renumbered

1.22An” Invitee” is an individual who enters another's premises as a result of an express or implied invitation of the owner or occupant for their mutual gain or benefit. An invitee must be on the property to conduct business, or because the property is public property and is made available to

ADDED DEFINITION

3

the public.1.10A "Member" means every person or entity

who holds membership in the Association. 1.23A "Member" means every person or entity who holds membership in the Association.

NO CHANGERenumbered

1.11A "Mortgage" means a mortgage or deed of trust encumbering a Lot or other portion of the Property. A "mortgagee" shall include the beneficiary under a deed of trust and any guarantor or insurer of a mortgage. An "institutional" mortgagee is a mortgagee that is a bank or savings and loan association or mortgage company or other entity chartered under federal or state laws whose principal business is lending money on the security of real property or investing in such loan or any insurance "company" or pension or profit sharing trust or any federal or state agency or instrumentality, including, without limitation, the Federal National Mortgage Association, the Federal Home Loan Mortgage Association, the Federal Housing Administration and the Veterans Administration. A "first mortgage" or "first mortgagee" is one having priority as to all other mortgages or holders of mortgages encumbering the same Lot or other portion of the Property.

1.24A "Mortgage" means a mortgage or deed of trust encumbering a Lot or other portion of the Property. A "mortgagee" shall include the beneficiary under a deed of trust and any guarantor or insurer of a mortgage. An "institutional" mortgagee is a mortgagee that is a bank or savings and loan association or mortgage company or other entity chartered under federal or state laws whose principal business is lending money on the security of real property or investing in such loan or any insurance "company" or pension or profit sharing trust or any federal or state agency or instrumentality, including, without limitation, the Federal National Mortgage Association, the Federal Home Loan Mortgage Association, the Federal Housing Administration and the Veterans Administration. A "first mortgage" or "first mortgagee" is one having priority as to all other mortgages or holders of mortgages encumbering the same Lot or other portion of the Property.

NO CHANGE OF INTENT

Renumbered

Separated from 1.11

1.25A "first mortgage" or "first mortgagee" is one having priority as to all other mortgages or holders of mortgages encumbering the same Lot or other portion of the Property.

NO CHANGE OF INTENT

Separated from 1.11

1.12An "Owner" means the record owner whether one or more persons or entities of a fee simple title to any Lot, including contract sellers under recorded contracts, but excluding those having such interest merely as security for the performance of

1.26An "Owner" means the recorded owner whether one or more persons or entities of a fee simple title to any Lot, including contract sellers under recorded contracts, but excluding those having such interest merely as security for the performance of

NO CHANGE

Renumbered

4

an obligation. an obligation.1.13The "Project" or "Development" means the

Property as subdivided, improved and developed.

1.27The "Project" or "Development" means the Property as subdivided, improved, developed and recorded in Track Map No. 1752 in Book 16 page 6 of the official records of San Luis Obispo County, California.

NO CHANGE OF INTENT

Edited for ClairtyRenumbered

1.28A “Policy or Procedure” describes how the CC&Rs and Association Rules are implemented.

ADDED DEFINITION

1.14The "Property" means the real property comprising the project. 1.29

The "Property" means the real property comprising the project.

NO CHANGERenumbered

1.30A “recreational type vehicle” includes the following and similar: All-terrain vehicles, boats, golf carts, motorcycles, personal watercraft, pickup truck campers, pop-up camper trailers, trailers, utility-terrain vehicles but specifically does not include Class A, Class B or Class C motor homes or bus conversions.

CHANGE OF INTENT ADDED DEFINITION

1.31A “Separate Interest” is the lot to which an owner holds title.

ADDED DEFINITION

1.32A “Successor” means a person or entity who takes over and continues the position or role of another.

ADDED DEFINITION

1.15The 'Tract Map" means the tract map for Tract No. 1752 recorded in Book 16 page 6 of the official records of San Luis Obispo County, California.

1.33The 'Tract Map" means the tract map for Tract No. 1752 recorded in Book 16 page 6 of the official records of San Luis Obispo County, California.

NO CHANGE

Renumbered

5

SECTION 2. NATURE AND PURPOSE OF DECLARATION

This Declaration constitutes a general plan for the protection and maintenance of the Property to enhance the value, desirability and attractiveness of the Lots and Common Area for the benefit of all Owners. These provisions are imposed upon the Owners and the Association and are for the benefit of all Lots and the Common Area, and shall bind the Owners and the Association. These provisions shall be a burden upon and a benefit to not only the original Owner of each Lot and the Association but also to their successors and assigns. All provisions of this Declaration are intended as and are hereby declared to be covenant

2.0

SECTION 2. NATURE AND PURPOSE OF DECLARATION

This Declaration constitutes a general plan for the protection and maintenance of the Property to enhance the value, desirability and attractiveness of the Lots and Common Area for the benefit of all Owners. These provisions are imposed upon the Owners and the Association and are for the benefit of all Lots and the Common Area, and shall bind the Owners and the Association. These provisions shall be a burden upon and a benefit to not only the original Owner of each Lot and the Association but also to their successors and assigns. All provisions of this Declaration are intended as and are hereby declared to be covenant

NO CHANGE

Vote: 7-0 2/8/16

2.1 Liberal Construction. The provisions of this Declaration shall be liberally construed to effectuate its purpose.

NO CHANGE OF INTENT

Relocated from 15.7 for emphasis/clarity. (Refers to Sec 2: Purpose)

Vote: 7-0 2/8/16

2.2 Failure to enforce any provision hereof shall not constitute a waiver of the right to enforce said provision thereafter.

NO CHANGE OF INTENT

Separated from 15.7 and relocated for emphasis/clarity.

Vote: 7-0 2/8/16

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SECTION 3. PROPERTY RIGHTS

3.1. Owners' Non-Exclusive Easement of Enjoyment; Association Rights. Every Owner and the Association shall have and is hereby granted a non-exclusive easement of use, enjoyment, ingress and egress throughout the Common Area including the streets and roads which are part of a Lot as depicted on the Tract Map, and any improvements therein or facilities thereof. Each such non-exclusive easement shall be appurtenant to and pass with the title to every Lot subject to the right of the Association to control use of the Common Area and of any recreational facilities situated upon the Common Area, including the right to the Association to suspend the right of an Owner to use the Common Area as provided in Section 5.3.1.2.

3.1

SECTION 3. PROPERTY RIGHTS

Owners' Non-Exclusive Easement of Enjoyment; Association Rights. Every Owner and the Association shall have and is hereby granted a non-exclusive easement of use, enjoyment, ingress and egress throughout the Common Area including the streets and roads which are part of a Lot as depicted on the Tract Map, and any improvements therein or facilities thereof. Each such non-exclusive easement shall be appurtenant to and pass with the title to every Lot subject to the right of the Association to control use of the Common Area and of any recreational facilities situated upon the Common Area, including the right to of the Association to suspend the right of an Owner to use the Common Area as provided in Section 5.3.1.2.

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

Vote: 7-0 2/8/16

3.2. Entry or Use Rights. Each Lot or the Common Area, as the case may be, shall be subject to the following rights of entry and use:

3.2 Entry or Use Rights. Each Lot or the Common Area, as the case may be, shall be subject to the following rights of entry and use:

NO CHANGE

Vote: 7-0 2/8/16

3.2..1. The right of the Association or its agents, at any reasonable time or times and with reasonable notice, to enter upon and inspect any Lot for the purpose of ascertaining whether the maintenance of such Lot, the maintenance, construction, or alteration of structures thereon, and any other matters referred to in this Declaration are in compliance with its provisions.

3.2.1

The right of the Association or its agents, at any reasonable time or times and with reasonable notice, to enter upon and inspect any Lot for the purpose of ascertaining whether the maintenance of such Lot, the maintenance, construction, or alteration of structures thereon, and any other matters referred to in this Declaration are in compliance with its provisions.

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

Vote: 7-0 2/8/16

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3.2.2. The right of the Association, or its agents, to enter upon any Lot to cure any violation or breach of this Declaration or the Bylaws or the Association Rules provided that at least thirty (30) days prior written notice of such violation or breach (except in case of emergency) has been given to the Owner, and provided that, within said thirty (30) day period such Owner had not acted to cure such violation or breach. The Association shall be entitled to recover from such Owner its costs of effecting such cure. The rights of entry and cure shall be immediate in case of an emergency originating upon or threatening any Lot, whether or not its Owner is present.

3.2.2

The right of the Association, or its agents, to enter upon any Lot to cure any violation or breach of this Declaration or the Bylaws, or the Association Rules, provided that at least thirty (30) days prior written notice of such violation or breach (except in case of emergency) has been given to the Owner and, provided that, within said thirty (30) day period, such Owner had not acted to cure such violation or breach. The Association shall be entitled to recover from such Owner its costs of effecting such cure. The rights of entry and cure shall be immediate in case of an emergency originating upon or threatening any Lot, whether or not its Owner is present.

NO CHANGE OF INTENTEdited for grammar,spelling, typo, punctuation &/or consistency.

Vote: 7-0 2/8/16

3.2.3. The right of the Association, or its agents, with reasonable notice, to enter upon any of the Lots to perform its obligations and duties under this Declaration, including obligations or duties with respect to construction, maintenance or repair for the benefit of the Common Area or the Owners in common, watering, planting, cutting, removing and otherwise caring for the landscaping upon the Common Area. The rights shall be immediate in case of an emergency originating upon or threatening any Lot, whether or not its Owner is present.

3.2.3

The right of the Association or its agents, with reasonable notice, to enter upon any of the Lots to perform its obligations and duties under this Declaration, including obligations or duties with respect to construction, maintenance or repair for the benefit of the Common Area or the Owners in common, watering, planting, cutting, removing and otherwise caring for the landscaping upon the Common Area. The rights shall be immediate in case of an emergency originating upon or threatening any Lot, whether or not its Owner is present.

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency..

Vote: 7-0 2/8/16

3.2.4. The right, with reasonable notice, of the Association and Owners (or their representatives) of adjoining Lots of

3.2.4

The right, with reasonable notice, of the Association and Owners (or their representatives) of adjoining Lots of entry

NO CHANGE OF INTENT

Edited for grammar,8

entry upon and access to slopes and drainage ways located upon a Lot when such access is essential for the maintenance or stabilization of slopes or drainage, or both on such adjoining Lots provided requests for entry are made in advance and that entry is at a time convenient to the Owner whose Lot is being entered upon. In case of emergency the right of entry shall be immediate.

upon and access to slopes and drainage ways located upon a Lot when such access is essential for the maintenance or stabilization of slopes or drainage or both, on such adjoining Lots, provided requests for entry are made in advance and that entry is at a time convenient to the Owner whose Lot is being entered upon. In case of emergency the right of entry shall be immediate.

spelling, typo, punctuation &/or consistency.

Vote: 7-0 2/8/16

3.2.5 No person of any age shall operate a motor vehicle in the Common Area without a valid driver license or permit. The only vehicles allowed in the unpaved portions of the Common Areas shall be service vehicles for the purpose of maintaining such areas. Recreational vehicles of any nature are specifically banned from unpaved areas.

3.2.5

No person of any age shall operate a motor vehicle in the Common Area without a valid driver license or permit. The only vehicles allowed in the unpaved portions of the Common Areas shall be service vehicles for the purpose of maintaining such areas or such other vehicles as previously approved by the Association. Recreational vehicles of any nature are specifically banned from unpaved areas.

NO CHANGE OF INTENT

Amendment passed by owners (36-6) and recorded with county but not included in Manderley’s CCRs.

Additional language

See 5/18/06 board minutes.

Vote: 4-1 8/16/163.3. Delegation of Use: Contract Purchasers:

Tenants. Any Owner may delegate his rights of use and enjoyment in the Common Area, including any recreational facilities, to the members of his family, his guests, and invitees, and to such other persons as may be permitted by the Bylaws and the Association Rules, subject, however, to this Declaration. However, if an Owner has sold his Lot to a contract purchaser or has leased or rented it, the Owner, members of his family, his guests and invitees shall not be entitled to use or enjoy the Common Area

3.3 Delegation of Use , Contract Purchasers , and Tenants . Any Owner may delegate his rights of use and enjoyment in the Common Area, including any recreational facilities, to the members of his family, his guests, and invitees, and to such other persons as may be permitted by the Bylaws and the Association Rules, subject, however, to this Declaration. However, if an Owner has sold his Lot to a contract purchaser or has leased or rented it, the Owner, members of his family, his guests and invitees shall not be entitled to use or

NO CHANGE OF INTENT

Edited for Clarity

Edited for grammar,spelling, typo, punctuation &/or consistency.

Legal Definition: An” Invitee” is an individual who enters another's premises as a result

9

nor any recreational or other facilities thereon while the Owner's Lot is occupied by the contract purchaser or tenant. Instead, the contract purchaser or tenant, while occupying the Lot, shall be entitled to use and enjoy the Common Area and any facilities thereon and to delegate the rights of use and enjoyment in the same manner as if he were the Owner of the Lot. Each Owner shall notify the secretary of the Association of the names of any contract purchaser or tenants of his Lot. Each Owner, contract purchaser or tenant shall notify the secretary of the Association of the names of all persons to whom the Owner, contract purchaser or tenant has delegated any rights of use and enjoyment and the relationship which each such person bears to the Owner, contract purchaser or tenant and all such notifications shall be made pursuant to and shall be subject to the provisions of Section 15.8. Any delegated rights of use and enjoyment are subject to suspension to the same extent as are those rights of Owners. No such delegation shall relieve an Owner from liability to the Association or to other Owners for payment of assessments or other monetary obligations to the Association or performance of the covenants, conditions and restrictions contained in this Declaration. Any lease, rental agreement or contract of sale entered into between an Owner and a Lessee or tenant of a lot shall be subject to and shall incorporate by reference and shall require performance by the Lessee, tenant or contract purchaser of

enjoy the Common Area nor any recreational or other facilities thereon while the Owner's Lot is occupied by the contract purchaser or tenant. Instead, the contract purchaser or tenant, while occupying the Lot, shall be entitled to use and enjoy the Common Area and any facilities thereon and to delegate the rights of use and enjoyment in the same manner as if he were the Owner of the Lot. Each Owner shall notify the secretary of the Association of the names of any contract purchaser or tenants of his Lot. Each Owner, contract purchaser or tenant shall notify the secretary of the Association of the names of all persons to whom the Owner, contract purchaser or tenant has delegated any rights of use and enjoyment and the relationship which each such person bears to the Owner, contract purchaser or tenant and all such notifications shall be made pursuant to and shall be subject to the provisions of Section 15.8. Any delegated rights of use and enjoyment are subject to suspension to the same extent as are those rights of Owners. No such delegation shall relieve an Owner from liability to the Association or to other Owners for payment of assessments or other monetary obligations to the Association or performance of the covenants, conditions and restrictions contained in this Declaration. Any lease, rental agreement or contract of sale entered into between an Owner and a Lessee or tenant of a Lot shall be subject to and shall incorporate by reference and shall require performance by the Lessee, tenant or contract purchaser of all of the covenants, conditions and restrictions contained herein, which provision shall be for the express benefit of the Association and each Owner. The Association and each Owner shall

of an express or implied invitation of the owner or occupant for their mutual gain or benefit. An invitee must be on the property for one of two reasons: to conduct some kind of business, or because the property is public property and is made available to the public.

10

all of the covenants, conditions and restrictions contained herein, which provision shall be for the express benefit of the Association and each Owner. The Association and each Owner shall have a right of action directly against any lessee, tenant or contract purchaser of an Owner, as well as against the Owner for nonperformance of any of the provisions of this Declaration to the same extent that such right of action exists against such Owner.

have a right of action directly against any lessee, tenant or contract purchaser of an Owner, as well as against the Owner for nonperformance of any of the provisions of this Declaration to the same extent that such right of action exists against such Owner.

TABLED 2/8/16VOTE: 7-0 3/14/16

3.4. Easements Granted by the Association. The Association shall have the power to grant and convey to any third party, easements and rights-of-way in, on, over or under the Common Area or any Lot for the purpose of constructing, erecting, operating or maintaining lines, cables, wires, conduits, or other devices for electricity, cable television, power, telephone and other purposes, public sewers, storm water drains and pipes, water systems sprinkling systems, water, heating and gas lines or pipes and any similar public or quasi-public improvements or facilities, and each Owner, in accepting a deed to a Lot, expressly consents to such easements and rights of way and authorizes and appoints the Association attorney-in-fact of such Owner to execute any and all instruments conveying or creating such easements or rights-of-way. However, no such easements or rights-of-way may be granted if they would permanently interfere with the use, occupancy or enjoyment by any Owner of his Lot, or of the recreational or other

Easements Granted by the Association. The Association shall have the power to grant and convey to any third party, easements and rights-of-way in, on, over or under the Common Area or any Lot for the purpose of constructing, erecting, operating or maintaining lines, cables, wires, conduits, or other devices for electricity, cable television, power, telephone and other purposes, public sewers, storm water drains and pipes, water systems, sprinkling systems, water, heating and gas lines or pipes and any similar public or quasi-public improvements or facilities, and each Owner, in accepting a deed to a Lot, expressly consents to such easements and rights of way and authorizes and appoints the Association attorney-in-fact of such Owner to execute any and all instruments conveying or creating such easements or rights-of-way. However, no such easements or rights-of-way may be granted if they would permanently interfere with the use, occupancy or enjoyment by any Owner of his Lot, or of

NO CHANGE OF INTENT Edited for grammar,Spelling, typo, punctuation &/or consistency.

11

facilities located upon the Common Area unless the consent in writing is obtained of seventy-five percent (75%) of the voting rights of all members and their first mortgagees.

the recreational or other facilities located upon the Common Area unless the consent in writing is obtained of seventy-five percent (75%) of the voting rights of all members and their first mortgagees.

Vote: 7-0 2/8/16

3.5. Other Easements. Each Lot and its Owner, and the Association as the case may be, is hereby declared to be subject to all the easements, dedications and rights-of-way granted or reserved in, on, over and under the Property and each Lot as shown on the Tract Map.

Other Easements. Each Lot and its Owner, and the Association as the case may be, is hereby declared to be subject to all the easements, dedications and rights-of-way granted or reserved in, on, over and under the Property and each Lot as shown on the Tract Map.

NO CHANGE

Vote: 7-0 2/8/16

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SECTION 4. USE RESTRICTIONS AND COVENANTS

4.1. Residential Use. Lots shall be used for residential purposes only.

4.1 Residential Use. Lots shall be used for residential purposes only.

NO CHANGE

Vote: 7-0 2/8/16

4.2. Leasing. Nothing in this Declaration shall prevent an Owner from leasing or renting his lots. However, any lease or rental agreement shall be in writing and any tenant shall abide by and be subject to all terms and provisions of this Declaration, the Articles and Bylaws, and the Association Rules and any lease or rental agreement shall specify that failure to abide by such provisions shall be a default under the lease or rental agreement. Failure by an Owner to take legal action, including the institution of proceedings in Unlawful Detainer against his lessee who is in violation of this Declaration, the Articles, the Bylaws or the Association Rules within ten (10) days after receipt of written demand so to do from the Board shall entitle the Association, through the Board, to take any and all such action, including the institution of proceedings in Unlawful Detainer on behalf of such Owner against his lessee. Any expenses incurred by the Association, including attorneys' fees and costs of suit, shall be paid by such Owner. Also, except for a mortgagee in possession of a Lot following a default in a first mortgage, a

4.2

4.2.1

4.2.2

Leasing. Nothing in this Declaration shall prevent an Owner(s) from leasing or renting his their lot( s ) to an individual or a family. However, subleasing is not permitted nor may s ingle rooms or less than the entire lot be leased. No Owner(s) shall not rent, lease or let his their Lot or any portion thereof , for transient or hotel purposes Also, except for a mortgagee in possession of a Lot following a default in a first mortgage, a foreclosure proceeding or acceptance of a deed or other arrangement in lieu of foreclosure.

Any lease or rental agreement shall be in writing, the term of which shall not be less than 12 months unless otherwise previously approved by the Association.

Tenants shall abide by and be subject to all terms and provisions of this Declaration, the Articles and Bylaws, and the Association Rules and any lease or rental agreement shall specify that failure to abide by such provisions shall be a default under the lease or rental agreement. Failure by an Owner(s) to take legal action, including the institution of proceedings in Unlawful Detainer against his their lessee who is in violation

NO CHANGE OF INTENT

Edited for Clarity (Addresses “Frat House”)

Vote: 7-0 2/8/16

A "Family" is two or more persons related through blood, marriage or legal adoption; or a number of unrelated persons not to exceed the number of bedrooms in the dwelling, who jointly occupy and have equal access to all areas of a dwelling unit and who function together as an integrated economic unit.Commonly used civil code (San Diego). Davis-Sterling.comReasonable restrictions allowed.

Vote: 7-0 2/8/16

13

foreclosure proceeding or acceptance of a deed or other arrangement in lieu of foreclosure, no Owner shall rent, lease or let his Lot for transient or hotel purposes.

of this Declaration, the Articles, the Bylaws or the Association Rules within ten (10) days after receipt of written demand so to do from the Board of Directors shall entitle the Association, through the Board of Directors, to take any and all such action, including the institution of proceedings in Unlawful Detainer on behalf of such Owner against his their lessee. Any expenses incurred by the Association, including attorneys' fees and costs of suit, shall be paid by such Owner.

Edited for grammar,spelling, typo, &/or punctuation

Vote: 7-0 2/8/16

4.3. Commercial Use. Except as otherwise provided in this Declaration, including Section 4.1, no Lot or portion of the Common Area shall be used or caused, allowed or authorized to be used in any way, directly or indirectly, for any business, commercial, manufacturing, mercantile, storing, vending, or other such non-residential purpose.

4.3 Commercial Use. Except as otherwise provided in this Declaration, including Section 4.1, no Lot or portion of the Common Area shall be used or caused, allowed or authorized to be used in any way, directly or indirectly, for any business, commercial, manufacturing, mercantile, storing, vending, or other such non-residential purpose.

NO CHANGE

Vote: 7-0 2/8/16

4.4. Owner Maintenance. Each Owner of a Lot shall he responsible for maintaining the structures located upon his Lot including the equipment and fixtures in the structure and its walls roof, ceilings windows and doors in a clean, sanitary, workable and attractive condition. However, each Owner has complete discretion as to the choice of furniture, furnishings and interior decorating; but windows can be covered only by drapes, shutters or shades and cannot be painted or covered by foil, cardboard or other similar materials. Each Owner also shall be responsible for maintenance, repair and

4.4 Owner Maintenance. Each Owner(s) of Lot(s) shall he be responsible for maintaining the all structures, equipment, materials, fixtures, perimeter fences and other items appurtenant to their lot(s) located upon his Lot including the equipment and fixtures in the structure and its walls roof, ceilings windows and doors in a clean, sanitary, workable and attractive condition. However, each Owner(s) has have complete discretion as to the choice of furniture, furnishings and interior decorating; but windows can may be covered only by drapes, shutters or shades and cannot shall not be painted or covered by foil, cardboard or other similar materials. Each Owner also shall be responsible for maintenance, repair and replacement of all plumbing, electrical, heating, air-conditioning and gas lines,

NO CHANGE OF INTENT

Added “perimeter fences” for clarity

Edited for grammar,spelling, typo, punctuation &/or consistency.

Edited for Clarity

Note: Lists cannot be exhaustive yet imply

14

replacement of all plumbing, electrical, heating, air-conditioning and gas lines, conduits, apparatus and equipment servicing his Lot and repair, replacement and cleaning of the windows and glass of his structure.

conduits, apparatus and equipment servicing his Lot and repair, replacement and cleaning of the windows and glass of his structure.

that missing items are exempt.

VOTE: 7-0 2/8/16VOTE: 7-0 4/11/16

4.4. 1. Landscaping. Each Owner of an improved Lot shall keep and maintain the planting and landscaping of such Lot in an attractive, clean, neat, sightly and wholesome appearance at all times, and shall further keep, maintain, plant and replant the Lot so as to prevent erosion or the possible occurrence of erosion of such Lot. Such required landscaping shall include, without limitation, all front yards and, as to corner Lots, shall also include sideyards. The adequacy of all landscaping shall be determined by the Architectural Committee and each Owner shall comply with its decision after being afforded a hearing by the Architectural Committee.

4.4.1

4.4.2

4.4.3

Landscaping. Each Owner of an improved Lot shall keep and maintain the planting and landscaping of such Lot in an attractive, clean, neat, sightly and wholesome appearance at all times, and shall further keep, maintain, plant and replant the Lot so as to prevent erosion or the possible occurrence of erosion of such Lot. Such required landscaping shall include, without limitation, all front yards and, as to corner Lots, shall also include side yards. The adequacy of all landscaping shall be determined by the Architectural Review Committee and each Owner shall comply with its decision after being afforded a hearing by the Architectural Review Committee

Diseased Plants. No plant or seeds infected with noxious insects or plant diseases shall be brought upon, grown or maintained within the Development.

No invasive plant species, as identified by the Association, may be brought upon the development. Invasive plant species are defined as those plants that escape from cultivation, or their original location, and spread relatively rapidly without human assistance.

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

Edited for Clarity

VOTE: 7-0 2/8/16

No Change

VOTE: 7-0 2/8/16

CHANGE OF INTENT

New Content

VOTE: 7-0 6/6/16

4.4.4 Each Owner shall have the right to install and maintain artificial turf consistent with the specifications set forth in the Architectural Policy and with the prior

NEW SECTION Required Legal ChangeConforms with Civil

15

approval of the Architectural Review Committee.

Code §4735(a)2Reasonable restrictions allowedARC to create standards.VOTE: 7-0 2/8/16

4.4.2. Rubbish and Debris. No weeds, rubbish, debris, objects or materials of any kind shall be placed or permitted to accumulate on any Lot or portion of the Common Area within the development which renders such Lot or Common Area unsanitary, unsightly, offensive or detrimental to any other Lot in the development or to the occupants of such other Lot. Trash, garbage, rubbish and other waste shall only be kept in sanitary containers. All service yards or service areas, sanitary containers and storage piles on any Lot shall be enclosed or fenced in such a manner that such yards, areas, containers and piles will not be visible from any streets, roadways and adjoining Lots. Notwithstanding, such sanitary containers may be set out for a reasonable period of time before and after scheduled trash pick up.

4.4.5 Rubbish and Debris. No weeds, rubbish, debris, objects or materials of any kind shall be placed or permitted to accumulate on any Lot or portion of the Common Area within the development which renders such Lot or Common Area unsanitary, unsightly, offensive or detrimental to any other Lot in the development or to the occupants of such other Lots. Trash, garbage, rubbish and other waste shall only be kept in sanitary containers. All service yards or service areas, sanitary containers and storage piles on any Lot shall be enclosed or fenced in such a manner that such yards, areas, containers and piles will not be visible from any streets, roadways and adjoining Lots. Notwithstanding, such sanitary containers may be set out for a reasonable period of time before and after scheduled trash pick up.

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

TABLED 2/8/16VOTE: 7-0 3/14/16

4.5. Association Maintenance. The Association shall be responsible for the repair and maintenance of the Common Area and any improvements of landscaping thereon. In connection therewith, the Association shall repair and maintain the Common Area, the Common Area roads, trees and landscaping and the retarding basins and associated

4.5 Association Maintenance. The Association shall be responsible for the repair and maintenance of the Common Area and any improvements of landscaping thereon. In connection therewith, the Association shall repair and maintain the Common Area, the Common Area roads, trees and landscaping and the retarding retention

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

16

drainage facilities located therein in accordance with the conditions imposed by the County upon approval and recordation of the final tract map for Tract 1752. The association shall water the same by an irrigation system owned and maintained by the Association.

basins and associated drainage facilities located therein in accordance with the conditions imposed by the County upon approval and recordation of the final tract map for Tract 1752. The association shall water the same by an irrigation system owned and maintained by the Association. Maintenance and repair of fences along lot lines are not the responsibility of the Association.

VOTE: 7-0 2/8/16VOTE: 7-0 4/11/16

4.6. Oil Drilling. No oil drilling, oil development operations, oil refining, quarrying, or mining operations of any kind shall be permitted on or in a Lot or the Common Area, and no oil wells tanks, tunnels or mineral excavations or shafts shall be permitted upon the surface of a Lot or the Common Area or within five hundred (500) feet below the surface of a Lot or the Common Area. No derrick or other structure designed for use in boring for water, oil or natural gas shall be erected, maintained or permitted on a Lot or the Common Area.

4.6 Oil Drilling. No oil drilling, oil development operations, oil refining, quarrying, or mining operations of any kind shall be permitted on or in a Lot or the Common Area, and no oil wells tanks, tunnels or mineral excavations or shafts shall be permitted upon the surface of a Lot or the Common Area or within five hundred (500) feet below the surface of a Lot or the Common Area. No derrick or other structure designed for use in boring for water, oil or natural gas shall be erected, maintained or permitted on a Lot or the Common Area.

NO CHANGE

VOTE: 7-0 4/4/16

4.7. Offensive Conduct; Nuisances. No noxious or offensive activities, including but not limited to, repair of automobiles or other motorized vehicles shall be carried on within the Project. Nothing shall be done on or within a Lot or Common Area which may be or may become an annoyance or nuisance to the other Owners, or that in any way interferes with the quiet enjoyment of occupants of Lots. Unless other wise permitted by the Association, no Owner shall serve food or beverages, cook, barbecue or engage in similar activities except within such Owner's Lot or using facilities installed for that purpose in the common area.

4.7 Offensive Conduct; Nuisances. No noxious or offensive activities, including but not limited to, repair of automobiles or other motorized vehicles shall be carried on within the Project provided the repair or maintenance of vehicles shall only be performed in a garage or workshop. Nothing shall be done on or within a Lot or Common Area which may be or may become an annoyance or nuisance to the other Owners, or that in any way interferes with the quiet enjoyment of occupants of Lots. Unless otherwise permitted by the Association, no Owner shall serve food or beverages, cook, barbecue or engage in similar activities

CHANGE OF INTENT

VOTE: 7-0 4/4/16

VOTE: 7-0

17

except within such Owner's Lot or using facilities installed for that purpose in the common area.

8/8/16

4.8. Parking Restrictions; Use of Garages. Unless otherwise permitted by the Association, no automobile shall be parked or left on any street. No boat, trailer, recreational vehicle, camper, truck or commercial vehicle shall be parked or left on any street, driveway or any part of the Common Area. A boat, trailer, recreational vehicle or camper may be parked in the sideyard adjacent to the garage originally constructed upon each Lot provided that such parking is no closer to the street than the front of such garage and that such parking area is screened by a fence or enclosure approved by the Association. However, parking by commercial vehicles for the purpose of making deliveries and by guests of Owners shall be permitted in accordance with the Association Rules. Any garages shall be used for parking vehicles only and shall not be converted to living space.

4.8

4.8.1

4.8.2

4.8.3

4.8.4

Parking Restrictions; Use of Garages.

At least the first two (2) operational automobiles and/or pickups shall be parked inside garages.Garages shall be normally closed when not in use. All other automobiles and/or pickups may be parked in the driveway provided they are operational.

Except for the actual time of loading and unloading (not to exceed 24 hours) no boat, trailer, recreational vehicle, camper or other vehicle shall be parked or left on any street or driveway (except as provided for in 4.81 and 4.8.3) without the express permission of the Association. Parking on any part of the Common Area is prohibited.

However Daytime (not overnight) parking by commercial vehicles during their normal course of business for the purpose of making deliveries, and personal vehicles by guests of Owners shall be permitted. However, all vehicles shall be parked on the same side of the street in a manner that does not impede emergency vehicles. in accordance with the Association Rules. A recreational type vehicle may be parked in an enclosed side yard adjacent to the attached garage provided that:

CHANGE OF INTENT VOTE: 7-0 4/11/16VOTE 7-0 8/8/16 VOTE: 7-0 8/16/16

Edited and renumbered for Clarity

Revised Text

NO CHANGE OF INTENT

VOTE: 7-0 4/11/16VOTE: 7-0 8/16/16

NO CHANGE OF INTENT

VOTE: 7-0 4/11/16VOTE: 7-0 8/16/16

BVE streets (26’) do not meet county fire department standards for

18

4.8.5

a) The enclosure is no closer to the street than the plane of the garage door; and

b) Such parked vehicle is entirely hidden from view (except via the top fence lattice) from all lots, streets or common areas by harmonious wooden fencing of the same style construction and height as those originally installed by the developer and commonly found throughout the community, except that such fence height may extend up to, but not exceed, eight (8) feet if necessary to hide the parked vehicle; and

c) Such parking and enclosure are approved by the Architectural Review Committee.

Definition 1.30: A “recreational type vehicle” includes the following and similar: All-terrain vehicles, boats, golf carts, motorcycles, personal watercraft, pickup truck campers, pop-up camper trailers, trailers, utility-terrain vehicles but specifically does not include Class A, Class B or Class C motor homes or bus conversions.Any Garages shall be used for parking vehicles, only, and shall not be converted to living space.

residential street parking.

“The access road must be a minimum of 24 feet in width for two way traffic (including) …(2)-2 foot shoulders.

Parking is only allowed where an additional 8 feet of width is added to each side of the road that will require parking”

CHANGE OF INTENT

VOTE: 6-1 8/8/16

NO CHANGE OF INTENT

VOTE: 7-0 4/11/16

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

4.9 Signs. A noncommercial sign, poster, flag, or banner is permissible and may be made

CHANGE OF INTENT

Required legal 19

Lot or the Common Area without the approval of the Association. However one sign of customary and reasonable dimensions advertising a Lot for sale or for rent may be placed within each Lot by its owner, the location and design of it to be subject to approval by the Association. An exception is granted for signs approximating 12" x 6" identifying security systems.

of paper, cardboard, cloth, plastic, or fabric, and may be posted or displayed from the yard, window, door, balcony, or outside wall, but may not be made of lights, roofing, siding, paving materials, flora, or balloons, or any other similar building, landscaping, or decorative component, or include the painting of architectural surfaces.

Noncommercial signs and posters that are more than 9 square feet in size and noncommercial flags or banners that are more than 15 square feet in size are prohibited.

change conforms with Civil Code §4710

VOTE: 7-0 4/11/16

4.10. Antennae, External Fixtures, Etc. No television or radio poles, antennae, satellite dishes, flag poles, clotheslines, or other external fixtures other than those originally installed by Declarant or approved by the Association and their replacements shall be constructed, erected or maintained on or with a Lot or the Common Area. No wiring, insulation. air-conditioning or other machinery or equipment other than that approved by the Association and their replacements shall be constructed, erected or maintained on or within a Lot or the Common Area. Each Owner shall have the right to maintain television or radio antennae up to 36 39 inches in diameter within completely enclosed portions of the structure or elsewhere on his Lot so long as these antennae are not visible from the street or from adjacent Lots. Installations which may be seen from adjacent

4.104.10.1

4.10.2

Antennae, External Fixtures, Solar systems Etc.Each Owner shall have the right to maintain satellite television antennae up to 36 inches in diameter. Such antennae installations shall not be visible from any streets, adjacent lots or the common areas unless preventing same would significantly increase the cost of the antenna system, including all related equipment, or significantly decrease its efficiency or performance. Installations shall be approved by the Architectural Review Committee for conformance prior to installation.No wiring, insulation, air-conditioning, radio poles, antennae, satellite, flag poles or other machinery or equipment, other than that approved by the Association and their replacements, shall be constructed, erected or maintained on or within a Lot or

CHANGE OF INTENT.

Required legal change conforms with Civil Code §4725.

Reasonable restrictions allowed.

VOTE: 7-0 4/11/16

NO CHANGE OF INTENT

VOTE: 7-0 4/11/16

Edited and renumbered for clarity

20

properties shall be reviewed by the Architectural Committee for conformance prior to installation. 4.10.

3

the Common Area without prior approval of the Architectural Review Committee.Each Owner shall have the right to maintain solar energy production systems. Such systems shall not be visible from any streets, or adjacent lots or the common areas unless preventing same would increase the designed installation cost by more than $1000 or decrease the designed efficiency by more than 10%. Installations shall be approved by the Architectural Review Committee for conformance prior to installation.

CHANGE OF INTENT

Required legal change conforms with Civil Code §714

Reasonable restrictions allowed.

VOTE: 7-0 4/11/16

4.11. Gas or Liquid Storage. No storage tank for the storage of gas or liquid shall be installed on or in the Development unless such installation has been approved by the Association.

4.11 Gas or Liquid Storage. No storage tank for the storage of gas or liquid shall be installed on or in the Development unless such installation has been approved by the Association. Portable propane and/or liquid natural gas tanks customarily used for bar-b-ques, heaters or similar equipment are permitted.

No change of intent.

Edited and for clarity

VOTE: 7-0 4/18/16

4.12. Diseased Plants. No plant or seeds infected with noxious insects or plant diseases shall be brought upon, grown or maintained within the Development.

4.12 Diseased Plants. No plant or seeds infected with noxious insects or plant diseases shall be brought upon, grown or maintained within the Development.

Relocated to 4.4.2

VOTE: 7-0 6/6/16

4.13. Division of Lots. None of the Lots shall be divided by subdivision map or parcel map, or otherwise, without the prior approval of the Association.

4.13 Division of Lots. None of the Lots shall be divided by subdivision map or parcel map, or otherwise, without the prior approval of the Association.

NO CHANGE

VOTE: 7-0 7/25/16

4.14. Animals. No animals, reptiles, rodents, birds, fish, livestock or poultry shall be kept upon any Lot or within the Common Area except that two (2) domestic dogs, two (2) domestic cats, fish, turtles and birds inside bird cages may be kept as household pets within any structure upon

4.14 Animals. No animals, reptiles, rodents, birds, fish, livestock or poultry shall be kept upon any Lot or within the Common Area except that two (2) three (3) domestic dogs, two three (3) domestic cats, fish, turtles, and birds inside bird cages may be kept as household pets

CHANGE OF INTENT

Rational: This amended

language is taken from Cypress Ridge CC&R

21

a Lot, if they are not kept, bred or raised any animal that constitutes a nuisance to any other Owner in the sole for commercial purposes. The Association can prohibit maintenance of any animal that constitutes a nuisance to any other Owner in the sole and exclusive opinion of the Association. Each person bringing or keeping a pet upon any Lot or the Common Area shall be liable to other Owners their family members, guests, invitees, tenants and contract purchasers, and their respective family members, guests and invitees for any damage to persons or property proximately caused by any such pet.

within any structure upon a Lot, if they are (a) not kept, bred or raised for commercial purposes, and (b) not so excessively noisy as to disturb the quiet enjoyment of each Owner of his or her Lot. The Association can prohibit maintenance of any animal that constitutes a nuisance or danger to any other Owner in the sole and exclusive opinion of the Association. Each person bringing or keeping a pet upon any Lot or the Common Area shall be liable to other Owners, their family members, guests, invitees, tenants and contract purchasers, and their respective family members, guests and invitees for any damage to persons or property proximately caused by any such pet. The Architectural Review Committee may approve 4-H project animals provided such animals are appropriate in a residential environment.

Section 7.4 except that Cypress Ridge only limits the number of dogs and cats to a “reasonable number.”

San Luis Obispo city codes and county planning department guidance permit three (3) dogs and three (3) cats at any given address. Anything more than this requires submittal of a non-commercial extension permit.

The current CC&R text was implemented by the developer in 1990 and taken from boilerplate in use at that time without consideration of our specific environment and circumstances.

There have been numerous instances of Members exceeding the two dogs and two cats rule without issues

22

or problems. Considering that we live in the country on one-half acre lots, this does not come as a surprise.

VOTE: 7-0 7/25/16

4.15. Restricted Use of Recreation Vehicles. No boat, truck, trailer, camper, recreational vehicle or tent shall be used as a living area while located on a Lot. No truck, trailer, camper or recreational vehicle may be stored on the property by any Owner unless in conformity with Section 4.8.

4.15 Restricted Use of Recreation Vehicles. No boat, truck, trailer, camper, recreational vehicle or tent shall be used as a living area while located on a Lot. No truck, trailer, camper or recreational vehicle may be stored on the property by any Owner unless in conformity with Section 4.8.

No Change

Editorial changes only

VOTE: 7-0 7/25/16

4.16. Trash Disposal. Trash, garbage or other waste shall be kept only in sanitary containers. No Owner shall permit or cause any trash or refuse to be kept on any portion of a Lot or the Common Area other than in the receptacles customarily used for it which shall be located only in a garage or patio except on the scheduled day for trash pickup.

DELETED NO CHANGE ON INTENT

This section deleted as it is redundant to Section 4.4.2.

VOTE: 7-0 7/25/16

4.17. Clotheslines. No exterior clothesline shall be erected or maintained and there shall be no exterior drying or laundering of clothes on balconies, patios, porches or other areas.

4.16 Clotheslines and/or drying racks are permitted in backyards. Neither is permitted in front nor side yards. A balcony, railing, awning, fence, patio or any other part of a building or structure does not qualify as a clothesline and/or drying rack nor may either be attached to any such structures. To the extent possible, clotheslines and/or drying racks shall not be visible from any public or private street or adjacent lots. Installations which would be visible from

REQUIRED LEGAL CHANGE

Conforms with Civil Code §4750.10.

Renumbered

Reasonable restrictions allowed.

23

streets or adjacent lots shall be reviewed by the Architectural Review Committee for conformance prior to installation.

VOTE: 7-0 7/25/16

4.18. Common Area Trees. No Owner shall cut, trim, prune, remove, replace or otherwise alter or affect the appearance or location of any living tree, plant or vegetation located in any portion of the Common Area without the prior written consent of the Association. Should any Owner fail to comply with the restriction imposed by this Section, the Association may levy against such Owner a special assessment for the cost of restoring or replacing any such tree.

4.17 Common Area Trees Plants. No Owner shall cut, trim, prune, remove, replace or otherwise alter or affect the appearance or location of any living tree, plant or vegetation located in any portion of the Common Area without the prior written consent of the Association. Should any Owner fail to comply with the restriction imposed by this Section, the Association may levy against such Owner a special assessment for the cost of restoring or replacing any such tree, plant, or vegetation.

No Change of Intent

Editorial changes only.

VOTE: 7-0 7/25/16

4.19. Compliance with Laws, Etc. Nothing shall be done or kept within any Lot or in the Common Area that might increase the rate of or cause the cancellation of, insurance maintained by the Association without the prior written consent of the Association. No Owner shall permit anything to be done or kept within his Lot that violates any law, ordinance, statute, rule or regulation of any local, county, state or federal body. No Owner shall allow his furniture, furnishings or other personal property to remain within any portion of the Common Area except as may be permitted by this Declaration or the Association.

4.18 Compliance with Laws, Etc. Nothing shall be done or kept within any Lot or in the Common Area that might increase the rate of or cause the cancellation of, insurance maintained by the Association without the prior written consent of the Association. No Owner shall permit anything to be done or kept within his Lot that violates any law, ordinance, statute, rule or regulation of any local, county, state or federal body. No Owner shall allow his furniture, furnishings or other personal property to remain within any portion of the Common Area except as may be permitted by this Declaration or the Association.

No Change of Intent

Editorial changes only.

Renumbered

VOTE: 7-0 7/25/16

4.20. Indemnification. Each Owner shall be liable to the Association for any damage to the Common Area or Association owned property that may be sustained by reason of the negligence of the Owner, members

4.19 Indemnification. Each Owner shall be liable to the Association for any damage to the Common Area or Association -owned property that may be sustained by reason of the negligence of the Owner, members

No Change

24

of his family, his contract purchasers, tenants, guests or invitees, to the extent that any such damage is not covered by casualty insurance in favor of the Association. Each Owner, by acceptance of his deed, agrees for himself and for the members of his family, his contract purchasers, tenants, guests or invitees, to indemnify each and every other Owner and the Association, and to hold them harmless from, and to defend them against, any claim of any person for personal injury or property damage occurring within the lot of the indemnifying Owner, except to the extent (i) that such injury or damage is covered by liability insurance in favor of the Association or other Owner or (ii) the injury or damage occurred by reason of the willful or negligent act or omission of the Association or other Owner or other person temporarily visiting said Lot.

of his family, his contract purchasers, tenants, guests or invitees, to the extent that any such damage is not covered by casualty insurance in favor of the Association. Each Owner, by acceptance of his deed, agrees for himself and for the members of his family, his contract purchasers, tenants, guests or invitees, to indemnify each and every other Owner and the Association, and to hold them harmless from, and to defend them against, any claim of any person for personal injury or property damage occurring within the lot of the indemnifying Owner, except to the extent (i) that (i) such injury or damage is covered by liability insurance in favor of the Association or other Owner or (ii) the injury or damage occurred by reason of the willful or negligent act or omission of the Association, or other Owner or other person temporarily visiting said Lot.

VOTE: 7-0 7/25/16

4.21. Owner's Obligation for Taxes. To the extent allowed by law, all Lots, including their pro rata interest in the Common Area if any, and the membership of an Owner in the Association, shall be separately assessed and taxed so that all taxes, assessments and charges which may become liens prior to mortgages under local law shall relate only to the individual Lots and not to the property as a whole. Each Owner shall be obligated to pay any taxes or assessments assessed by the County Assessor of the County against his Lot and against his personal property.

4.20 Owner's Obligation for Taxes. To the extent allowed by law, all Lots, including their pro rata interest in the Common Area if any, and the membership of an Owner in the Association, shall be separately assessed and taxed so that all taxes, assessments and charges which may become liens prior to mortgages under local law shall relate only to the individual Lots and not to the property as a whole. Each Owner shall be obligated to pay any taxes or assessments assessed by the San Luis Obispo County Assessor of the County against his Lot and against his personal property.

No Change of Intent

Editorial Changes

VOTE: 7-0 7/25/16

25

4.22. Future Construction. Nothing in this Declaration shall limit the right of the Association to construct improvements as may be required by any public agency at any time.

4.21 Future Construction. Nothing in this Declaration shall limit the right of the Association to construct improvements as may be required by any public agency at any time.

No Change

VOTE: 7-0 7/25/16

4.23. Design, Construction and Alteration of Structures: Architectural Committee Approval.

4.23.1. Allowable Structures. No structures may be erected, placed, moved onto or maintained ("constructed") on any Lot except one (1) single family dwelling house designed for occupancy by not more than one (1) family with an interior dwelling area of not less than two thousand (2,000) square feet, not exceeding two (2) stories, together with no more than one (1) detached out-building for use as a garage, servants' quarters, pool house or guest house in conjunction with said single family dwelling house, and such other structures as may be appropriate to the improvement and landscaping of said Lot for the purpose of its occupancy as a residence by a single family. Each such out-building shall conform in appearance with said dwelling house, and no such out-building or other structure including landscaping and fences may be erected without the prior approval as hereinafter provided of the Architectural Committee, as

4.22

4.22.1

4.22.2

Design, Construction and Alteration of Structures; Architectural Review Committee Approval.

Allowable Structures. No structures may be erected, placed, moved onto or maintained ("constructed") on any Lot except one (1) single family dwelling house designed for occupancy by not more than one (1) family with an interior dwelling area of not less than two thousand (2,000) square feet, not exceeding two (2) stories, one (1) story together with no more than one (1) detached out-building of an architectural style harmonious with the single family dwelling on said Lot, for use as a garage, servants' quarters, work shop, pool house or guest house in conjunction with said a single family dwelling house.

In addition to the above referenced single “Out-Building”, and such no more than two (2) other structures, neither to exceed one hundred twenty square feet (120 sq. ft.), as may be appropriate to for the improvement and landscaping of said Lot, may be constructed with the prior approval of the Architectural Review Committee. Any such structures approved prior to the adoption of these amended CCRs are acceptable as originally

CHANGE OF INTENT

VOTE: 6-1 8/8/16

“…new single family dwelling still possible if original dwell requires replacement due to fire, etc.

Renumbered

Additional garage disallowed as inharmonious.

CHANGE OF INTENT

Specifies number of “other structures”

Structures larger than 120 ft2 require county building permit.

Revised Text

VOTE 7-0 8/8/16 VOTE: 7-0 8/16/16

26

hereafter provided. No additional story or partial story may be added to any existing home.

4.22.3

4.22.4

constructed. for the purpose of its occupancy as a residence by a single family. Each such out-building shall conform in appearance with said dwelling house, and shall

n No such out-building or other structure, including landscaping and fences, may be erected without the prior approval as hereinafter provided of the Architectural Review Committee, as hereinafter provided.

No additional story or partial story may be added to any existing home.

NO CHANGE OF INTENT

VOTE: 7-0 8/8/16

NO CHANGE

VOTE: 7-0 8/8/16

4.23.2. Approval of Plans Required. No structure may be constructed upon any Lot, nor shall any existing structure upon any Lot be altered in any way which materially changes the exterior appearance thereof, nor may any action be taken by an Owner which requires approval of the Architectural committee hereunder, unless prior thereto complete plans for such construction, alteration or action including any exterior color scheme and a landscaping and plot plan of the location thereof with reference to said Lot and structure, are submitted to the Architectural Committee for approval. Approval of such plans may be withheld because of failure to comply with this Declaration, or because said plans fail to include such information as may be reasonably requested by the

4.23 Approval of Plans Required. No structure may be constructed upon any Lot, nor shall any existing structure upon any Lot be altered in any way which materially changes the exterior appearance thereof, nor may any action be taken by an Owner which requires approval of the Architectural Review Committee hereunder, unless prior thereto complete plans for such construction, alteration or action including any exterior color scheme and a landscaping and plot plan of the location thereof with reference to said Lot and structure, are submitted to the Architectural Review Committee for approval. Approval of such plans may be withheld because of failure to comply with this Declaration, or because said plans fail to include such information as may be reasonably requested by the Architectural Review Committee, or because of reasonable objection to the design and

No Change of Intent

Editorial Changes

27

Architectural Committee, or because of reasonable objection to the design and appearance of the proposed structure. alteration or action, or its failure to conform with existing structures within the development, or because the location, grading plan, color scheme, finish design, proportions, style of architecture, height or appropriateness of the proposed structure, alteration or action is disapproved, or because of any other matter which, in the judgment of the Architectural Committee, would render the proposed structure, alteration or action inharmonious with the general plan of improvement of the development or with other structures located on Lots in the vicinity of the Lot upon which the structure or alteration thereof is proposed. Upon approval by the Architectural Committee of plans for construction, alteration or other action, a copy of such plans as so approved shall be deposited for permanent record with the Architectural Committee and a copy of such plans bearing the written approval of the Architectural Committee shall, upon request, be returned to the Owner of the Lot upon which such structure is or will be constructed or altered. If any structure shall be constructed or altered upon any Lot, or if any action requiring approval of the

appearance of the proposed structure, alteration or action, or its failure to conform with existing structures within the development, or because the location, grading plan, color scheme, finish design, proportions, style of architecture, height or appropriateness of the proposed structure, alteration or action is disapproved, or because of any other matter which, in the judgment of the Architectural Review Committee, would render the proposed structure, alteration or action inharmonious with the general plan of improvement of the development or with other structures located on Lots in the vicinity of the Lot upon which the structure or alteration thereof is proposed. Upon approval by the Architectural Review Committee of plans for construction, alteration or other action, a copy of such plans as so approved shall be deposited for permanent record with the Architectural Review Committee and a copy of such plans bearing the written approval of the Architectural Review Committee shall, upon request, be returned to the Owner of the Lot upon which such structure is or will be constructed or altered. If any structure shall be constructed or altered upon any Lot, or if any action requiring approval of the Architectural Review Committee shall be taken, or otherwise than in accordance with plans or conditions approved by the Architectural Review Committee pursuant to the provisions of this Sections 4.22 and 4.23 such construction, alteration or VOTE: 7-0 8/16/16

28

Architectural Committee shall be taken, or otherwise than in accordance with plans or conditions approved by the Architectural Committee pursuant to the provisions of this Section 4.23, such construction, alteration or action shall be deemed to have been undertaken in violation of and without the approval required by this Section 4.23.

action shall be deemed to have been undertaken in violation of and without the approval required by this Sections 4.22 and 4.23.

4.23.1

Approval of Architectural Plans. Approval of such plans shall require unanimous agreement of all three members of the Architectural Review Committee. In the event that one member of the committee is unavailable then the affirmative agreement of the two remaining committee members shall suffice.

NO CHANGE OF INTENTUnanimous approval of plans has always been the practice of the ARC as specified in the Architectural Policy. Unanimous approval provides the strongest protection against erosion of the architectural standards and property values which benefits the entire community. Including unanimous approval in the CCRs further strengthens these protections.

VOTE: 7-0 8/16/164.23.2

Appeal. Any appeal by an owner of the disapproval by the Architectural Review Committee of a plan submission shall commence with a written request to the Architectural Review Committee for reconsideration.

CHANGE OF INTENT – NEW SECTION

Rational: Beginning the appeal process with the ARC provides maximum levels and

29

opportunities to owners for redress of adverse decisions.

VOTE: 7-0 8/16/16

4.23.3. Non-Waiver. Approval of plans or action for one (1) Lot shall not be deemed a waiver of the Architectural Committee's right, in its discretion, to disapprove such plans or action or any of the features or elements included therein if such plans or action of features or elements are subsequently submitted for approval for any other Lot or Lots.

4.23.3

Non-Waiver. Approval of plans or action for one (1) Lot shall not be deemed a waiver of the Architectural Review Committee's right, in its discretion, to disapprove such plans or action of or any of the features or elements included therein if such plans or action of features or elements are subsequently submitted for approval for any other Lot or Lots.

No Change of Intent

Editorial Changes

VOTE: 7-0 8/16/16

4.23.4. Time to Complete. Any approved work of construction or alteration or other action requiring approval hereunder shall be prosecuted diligently to completion in accordance with the plans or action so approved, and completed within twelve (12) months after the date of such approval. Failure to so complete such work shall cause such approval to be automatically withdrawn, unless the Architectural Committee extends such approval for a period not to exceed six (6) additional months. After such automatic withdrawal of approval, the structure being constructed or altered shall not then or thereafter be occupied or permitted to remain on any Lot for a period longer than three (3) months. For purposes of calculating the time within which work must be completed as set forth

4.23.4

Time to Complete. Any approved work of construction or alteration or other action requiring approval of the Architectural Review Committee hereunder shall be prosecuted diligently to completion in accordance with the plans or action so approved, and completed within twelve (12) months after the date of such approval. Failure to so complete such work shall cause such approval to be automatically withdrawn, unless the Architectural Review Committee extends such approval for a period not to exceed six (6) additional months. After such automatic withdrawal of approval, the structure being constructed or altered shall not then or thereafter be occupied or permitted to remain on any Lot for a period longer than three (3) months. For purposes of calculating the time within which work must be completed as set forth above, any prevention, delay or

No Change of Intent

Editorial Changes

30

above, any prevention, delay or stoppage in the construction or alteration undertaken pursuant to this Section 4.23, due to acts of God, war, inability to obtain labor or materials or reasonable substitutes therefor, or governmental regulations or controls shall extend the provisions of this Section with respect to time for a period equal to any such prevention, delay or stoppage, not to exceed a period of twelve (12) months.

stoppage in the construction or alteration undertaken pursuant to this Section 4.23, due to acts of God, war, inability to obtain labor or materials or reasonable substitutes therefor, or governmental regulations or controls shall extend the provisions of this Section with respect to time for a period equal to any such prevention, delay or stoppage, not to exceed a period of twelve (12) months.

VOTE: 7-0 8/16/16

4.23.5. Certificate of Compliance. Upon completion of the work of construction, alteration or other action in accordance with plans approved by the Architectural Committee, it shall, upon written request of the Owner thereof, issue a certificate of compliance signed by two of its members identifying such structure and the Lot on which such structure is placed, and stating that the plans and location of such structure have been approved and that structure or other action taken by the Owner complies with this Declaration. Delivery of such certificate to such Owner shall be at the expense of such Owner. When a certificate of compliance is issued and delivered in accordance with the provisions of this Section 4.23.5, any person who may have an interest in the development of any Lot therein shall be precluded from raising any question or asserting any irregularity of whatsoever kind or nature, as to

4.23.5

Certificate of Compliance. Upon completion of the work of construction, alteration or other action in accordance with plans approved by the Architectural Review Committee, it shall, upon written request of the Owner thereof, issue a certificate of compliance signed by two of its members identifying such structure and the Lot on which such structure is placed, and stating that the plans and location of such structure have been approved and that the structure or other action taken by the Owner complies with this Declaration. Delivery of such certificate of compliance to such Owner shall be at the expense of such Owner. When a certificate of compliance is issued and delivered in accordance with the provisions of this Section 4.23.3, any person who may have an interest in the development of any Lot therein shall be precluded from raising any question or asserting any irregularity of whatsoever kind or nature, as to the Architectural Review Committee, any purchaser or

NO CHANGE OF INTENT

Editorial Changes

31

the Architectural Committee, any purchaser or encumbrance in good faith and for value, or any title insurer, concerning the compliance of any structure on the Lot therein described with all of the requirements of this Section 4.23 and with all other requirements of this Declaration as to which the Architectural Committee exercises any discretionary or interpretive power, or concerning the right of the persons purporting to sign such certificate and deliver the same on behalf of the Architectural Committee.

encumbrance in good faith and for value, or any title insurer, concerning the compliance of any structure on the Lot therein described with all of the requirements of this Section 4.23 and with all other requirements of this Declaration as to which the Architectural Review Committee exercises any discretionary or interpretive power, or concerning the right of the persons purporting to sign such certificate of compliance and deliver the same on behalf of the Architectural Review Committee.

VOTE: 7-0 8/16/16

4.23.6. Fees. The Architectural Committee may charge and collect a fee for the examination of any plans submitted for approval pursuant to this Section 4.23, payable at the time such plans are so submitted. The fee shall be such reasonable amount as the Association may from time to time determine.

4.23.6

Fees. The Architectural Review Committee may charge and collect a fee for the examination of any plans submitted for approval pursuant to this Section 4.22 and 4.23, payable at the time such plans are so submitted. The fee shall be such reasonable amount as the Association may from time to time determine.

NO CHANGE OF INTENT

Editorial – See minor editorial updates in left column.

VOTE: 7-0 8/16/16

4.23.7. Appointment of Architectural Committee. The Board of Directors shall have the power to appoint three (3) persons as members of the Architectural Committee, which members shall be Owners. Members of the committee so appointed shall serve for overlapping terms of three years with one member being replaced each year. Members may be reappointed for additional terms at the discretion of the Board of Directors.

4.23.7

Appointment of Architectural Review Committee. The Board of Directors shall have the power to appoint three (3) persons as members of the Architectural Review Committee, which members shall be Owners. The Board of Directors shall also have the power to designate the chairperson of the Architectural Review Committee. Members of the committee so appointed shall serve for overlapping terms of three years with one member being replaced each year. Members may be reappointed for additional terms at the

CHANGE OF INTENT

This section updated per Corp. Code 7210 and Robert’s Rules as the duly elected Board of Directors has authority over any committee.

VOTE: 7-0 32

discretion of the Board of Directors. 8/16/164.23.8. Failure to Act. In the event the

Architectural Committee shall fail or refuse to act upon any matter presented to it for its approval for a period of thirty (30) days, the approval of the Architectural Committee on such matter shall be deemed to have been given.

4.23.8

Failure to Act. In the event the Architectural Review Committee shall fail or refuse to act upon any matter presented to it for its approval for a period of thirty (30) days, the approval of the Architectural Review Committee on such matter shall be deemed to have been given.

NO CHANGE OF INTENT

VOTE: 7-0 8/16/16

4.23.9. Non-Liability of Members. No members of the Architectural Committee shall be liable to any Owner, or to any other party, for any action taken by reason of or resulting from any mistake in judgment, negligence or nonfeasance.

4.23.9

Non-Liability of Members. No members of the Architectural Review Committee shall be liable to any Owner, or to any other party, for any action taken by reason of or resulting from any mistake in judgment, negligence or nonfeasance. VOTE: 7-0

8/16/164.23.10. Promulgation of Rules. The

Architectural Committee may promulgate rules governing the form and content of plans to be submitted for its approval and governing the standards of required maintenance of Lots, including the structures and landscaping thereof. Further, the Architectural Committee may issue statements of its policy with respect to the foregoing or with respect to other matters with which it may be concerned. Such rules and such statements of policy may be amended or revoked by the Architectural Committee at any time, and no inclusion in, omission from, or amendment of any such rule or statement shall be deemed to bind the Architectural Committee as to its action, including approval or

4.23.10

Refer to Legal

33

disapproval of any feature or matter with which it may be concerned, or to waive the exercise of the Architectural Committee's discretion as to any such matter. Without waiver of the foregoing right to promulgate and amend rules, such rules shall provide as follows:

(a) No deviation from the following styles of construction shall be permitted without specific prior approval of the Architectural Committee:i) Spanish (no exterior arch

may be less than ten (10) inches in thickness)

ii) Mediterranean (no exterior arch may be less than ten (10) inches in thickness)

iii) California Ranch iv) Southwest v) Contemporary

(b) All roofs shall be composed of masonry tile.

(c) Garages shall be for at least (2) cars and all driveways shall be concrete.

(d) Windows shall be of wood or aluminum of a bronze, white or other color other than natural mill finish.

(e) Pursuant to the conditions of approval for this tract, notice is given that EPA approved fireplaces will be required for all residential units.

(f) All toilets shall be of the low 34

flow flush valve type. (g) All private septic systems shall

be engineered in such a fashion that they can be easily connected to a future public sewer system located in the street.

4.23.11. Violation of Rules. The violation of rules promulgated by the Architectural Committee shall be deemed to be a violation and breach of this Declaration

4.23.11

Violation of Rules. The violation of rules promulgated by the Architectural Review Committee shall be deemed to be a violation and breach of this Declaration

No Change

VOTE: 7-0 8/16/16

4.23.12

Architectural Review Committee Meetings.  The Architectural Review Committee shall provide notice and agendas of all meetings. Members may attend such meetings, but shall not participate in the discussion nor vote. Meeting minutes shall be prepared and available for inspection by the Members.

CHANGE ON INTENTNEW SECTION

Recommendations of DavisStirling.com for Architectural Committee meetings to have notices, have agendas, and allow members to attend.

    Requirement of Civil Code 5210(a)(8) to document and retain minutes.

VOTE: 7-0 8/16/16

4.24. High Voltage Transmission Lines. Pursuant to the conditions for approval of this tract, notice is given that the property is near high voltage electric transmission lines. There is ongoing research on the possible potential adverse health effects caused by exposure to a magnetic field generated by high voltage lines. Although more research is needed before the questions of whether

4.24 High Voltage Transmission Lines. Pursuant to the conditions for approval of this tract, notice is given that the property is near high voltage electric transmission lines. There is ongoing research on the possible potential adverse health effects caused by exposure to a magnetic field generated by high voltage lines. Although more research is needed before the questions of

Refer to Legal for Deletion

35

magnetic fields cause adverse health effects can be resolved, the basis for such a hypothesis is established. At this time no risk assessments have been made.

whether magnetic fields cause adverse health effects can be resolved, the basis for such a hypothesis is established. At this time no risk assessments have been made.

4.25. Odor. Pursuant to the conditions for approval of this Tract, notice is given that the property is in an area from which combustion and petroleum-type odor complaints are frequently received by the Air Pollution Control District. The District Hearing Board has issued a Nuisance Abatement Order which should improve air quality in the Nipomo area; however, clean up is a lengthy process and the County projects that a significant improvement in the odor nuisance may not be seen until 1992 or 1993.

4.25 Odor. Pursuant to the conditions for approval of this Tract, notice is given that the property is in an area from which combustion and petroleum-type odor complaints are frequently received by the Air Pollution Control District. The District Hearing Board has issued a Nuisance Abatement Order which should improve air quality in the Nipomo area; however, clean up is a lengthy process and the County projects that a significant improvement in the odor nuisance may not be seen until 1992 or 1993.

Refer to Legal for Deletion

4.26. Assessment District. The Association and all owners agree that it and they will not oppose formation of a special assessment district to provide a public sewer system.

4.26 Assessment District. The Association and all owners agree that it and they will not oppose formation of a special assessment district to provide a public sewer system

No Change

VOTE: 7-0 7/25/16

4.27. Offer to Dedicate. Notice is given that Declarant has executed an irrevocable offer to dedicate the streets within the Project to the County of San Luis Obispo but that the offer has not been accepted as yet.

4.27 Offer to Dedicate. Notice is given that Declarant has executed an irrevocable offer to dedicate the streets within the Project to the County of San Luis Obispo but that the offer has not been accepted as yet.

No Change

VOTE: 7-0 7/25/16

4.28. Enforcement. The failure of any Owner to comply with any provision of this Declaration, the Articles, the Bylaws, the Association Rules or Board resolution shall give rise to a cause of action by the Association and any aggrieved Owner for the recovery of damages or for injunctive relief, or both.

4.28 Enforcement. The failure of any Owner to comply with any provision of this Declaration, the Articles, the Bylaws, the Association Rules or Board resolution shall give rise to a cause of action by the Association and any aggrieved Owner for the recovery of damages or for injunctive relief, or both.

No Change

VOTE: 7-0 7/25/16

36

SECTION 5. THE ASSOCIATION.

5.1. Formation. The Association is a nonprofit mutual benefit corporation formed under the laws of California. The Association shall be vested with ownership of the Common Area except for the streets and roads within the boundaries of a Lot and shall be charged with the duties and vested with the powers set forth in the Articles, the Bylaws and this Declaration.

5.1

SECTION 5. THE ASSOCIATION.

Formation. The Association is a nonprofit mutual benefit corporation formed under the laws of California. The Association shall be vested with ownership of the Common Area except for the streets and roads within the boundaries of a Lot and shall be charged with the duties and vested with the powers set forth in the Articles, the Bylaws and this Declaration.

NO CHANGE

VOTE: 7-0 6/6/16

5.2. Association Action: Board of Directors and Officers. Except as to matters requiring the approval of members as set forth in this Declaration, the Articles or the Bylaws, the affairs of the Association shall be conducted by the Board and such officers as the Board may elect or appoint. Such election or appointment shall be in accordance with this Declaration or the Bylaws. Except as otherwise provided in this Declaration, the Articles, or the Bylaws, all matters requiring the approval of members shall be deemed approved if members holding a majority of the total voting rights assent to them by written consent as provided in the Bylaws or if approved by a majority vote of a quorum of members at any regular or special meeting held in accordance with the Bylaws.

5.2 Association Action: Board of Directors and Officers. Except as to matters requiring the approval of members as set forth in this Declaration, the Articles or the Bylaws, the affairs of the Association shall be conducted by the Board of Directors and such officers as the Board of Directors may elect or appoint. Such election or appointment shall be in accordance with this Declaration or the Bylaws. Except as otherwise provided in this Declaration, the Articles, or the Bylaws, all matters requiring the approval of members shall be deemed approved if members holding a majority of the total voting rights assent to them by written consent as provided in the Bylaws or if approved by a majority vote of a quorum of members at any regular or special meeting held in accordance with the Bylaws.

NO CHANGE

VOTE: 7-0 6/6/16

5.3. Powers and Duties of Association

5.3.1. Powers. The Association shall have all the powers of a nonprofit mutual benefit corporation organized under

5.3

5.3.1

5.3. Powers and Duties of Association

Powers. The Association shall have all the powers of a nonprofit mutual benefit corporation organized under the Nonprofit

NO CHANGE

37

the Nonprofit Mutual Benefit Corporation Law of California subject only to such limitations upon the exercise of such powers as are set forth in the Articles, the Bylaws and this Declaration. It shall have the power to do any lawful things that may be authorized, required or permitted to be done by the Association under this Declaration, the Articles and the Bylaws and to do and perform any acts that may be necessary or proper for or incidental to, the exercise of any of the express powers of the Association, including, without limitation, the following:

Mutual Benefit Corporation Law of California subject only to such limitations upon the exercise of such powers as are set forth in the Articles, the Bylaws and this Declaration. It shall have the power to do any lawful things that may be authorized, required or permitted to be done by the Association under this Declaration, the Articles and the Bylaws and to do and perform any acts that may be necessary or proper for or incidental to, the exercise of any of the express powers of the Association, including, without limitation, the following:

VOTE: 7-0 6/6/16

5.3.1.1. Assessments. The Association shall have the power to establish, fix and levy assessments against the Owners of Lots and to enforce payment of such assessments in accordance with the provisions of this Declaration.

5.3.1.1

Assessments. The Association shall have the power to establish, fix and levy assessments against the Owners of Lots and to enforce payment of such assessments in accordance with the provisions of this Declaration.

NO CHANGE

VOTE: 7-0 6/6/16

5.3.1.2. Delegation of Powers. The Association acting by and through the Board can delegate its powers, duties and responsibilities to committees or employees, including a professional managing agent ("manager"), subject to the provisions of Sections 5.3.3.4 and

5.2.1.2

Delegation of Powers. The Association acting by and through the Board of Directors can delegate its powers, duties and responsibilities to committees or employees, including a professional managing agent ("manager"), subject to the provisions of Sections 5.3.3.4 and 13.17.

NO CHANGE

VOTE: 7-0 6/6/16

5.3.1.3. Association Rules. The Board shall have the power to adopt,

5.3.1.3

Association Rules.(a) The Board of Directors shall have the

CHANGE OF INTENT

As Association Rules 38

amend and repeal the Association Rules as it deems reasonable. The Association Rules shall govern, inter alia, the use and enjoyment of the Common Area, including but not limited to, any recreational facilities and landscaped areas by all Owners and tenants, and their respective family members, guests or invitees. However, the Association Rules shall not be inconsistent with or materially alter any other provisions of this Declaration, the Articles or the Bylaws. A copy of the Association Rules as adopted, amended or repealed, shall be sent by first class mail or otherwise delivered to each Owner. In case of any conflict between any of the Association Rules and any other provisions of this Declaration or the Articles or Bylaws, the provisions of the Association Rules shall be deemed to be superseded by the provisions of this Declaration, the Articles or the Bylaws to the extent of any such inconsistency.

power to adopt, amend and repeal the Association Rules as it deems reasonable. The Association Rules shall govern, among other things , the use and enjoyment of the Common Area, including but not limited to, any recreational facilities and landscaped areas by all Owners and tenants, and their respective family members, guests or invitees.(b) However, tThe Association Rules shall not be inconsistent with or materially alter any other provisions of this Declaration, the Articles or the Bylaws.(c) Apart from those exceptions enumerated in Civil Code §4355(b) or unless an emergency arises as defined in Civil Code 4360(d), the Board of Directors shall provide notice to the members at least thirty (30) days before making a rule change. Decisions on any proposed rule change shall be made at a Board of Directors meeting.(d) Within fifteen (15) days after making a rule change, a copy of the Association Rules as adopted, amended or repealed, rule change shall be sent by first class mail or otherwise delivered to each Owner.(e) In case of any conflict between any of the Association rules and any other provisions of this Declaration or the Articles or Bylaws, the provisions of the Association Rules shall be deemed to be superseded by the provisions of this Declaration, the Articles or the Bylaws to the extent of any such inconsistency.

are Operating Rules controlled by Civil Codes 4340, 4355, and 4360, updated this section to reflect these

Civil Code §4355(b) Exceptions

1) A decision regarding maintenance of the common area.

2) A decision on a specific matter that is not intended to apply generally.

3) A decision setting the amount of a regular or special assessment.

4) A rule change that is required by law, if the board has no discretion as to the substantive effect of the rule change.

5) Issuance of a document that merely repeats existing law or the governing

39

documents.

VOTE: 7-0 6/6/16VOTE: 7-0 8/16/16

5.3.1.4. Right of Enforcement. The Association in its own name and on its own behalf, or on behalf of any Owner who consents can commence and maintain actions to collect monetary obligations, for damages or to restrain and enjoin any actual or threatened breach of any provisions of this Declaration or of the Articles or Bylaws, or of the Association Rules or any Board resolutions, and to enforce by mandatory injunction, or otherwise, all of those provisions. In addition, the Association can suspend the voting rights, can suspend use privileges of the Common Area or can assess monetary penalties against any Owner or other person entitled to exercise such rights or privileges for any violation of this Declaration or the Articles, Bylaws, Association Rules or Board resolutions. However, any suspension of use privileges cannot exceed a period of thirty (30) days for any one violation (except that if such suspension is due to the failure to pay assessments, the suspension may continue until payment is made) and any

5.3.1.4

Right of Enforcement. The Association in its own name and on its own behalf, or on behalf of any Owner who consents can may commence and maintain actions to collect monetary obligations, for damages or to restrain and enjoin any actual or threatened breach of any provisions of this Declaration or of the Articles or Bylaws, or of the Association Rules or any Board resolutions, and to enforce by mandatory injunction, or otherwise, all of those provisions. In addition, the Association can may suspend the voting rights, can may suspend use privileges of the Common Area or can may assess monetary penalties against any Owner or other person entitled to exercise such rights or privileges for any violation of this Declaration or the Articles, Bylaws, Association Rules or Board resolutions. However, any suspension of use privileges cannot may not exceed a period of thirty (30) days for any one violation (except that if such suspension is due to the failure to pay assessments, the suspension may continue until payment is made) and any monetary penalty cannot may not exceed Fifty Dollars ($50.00) Eighty-five Dollars (85.00) for any one violation, and no suspension or fine can may be imposed unless accomplished in the manner provided for in the Bylaws. Except as provided in this Section, the

NO CHANGE OF INTENT

Penalty updated for inflation.

40

monetary penalty cannot exceed Fifty Dollars ($50.00) for any one violation, and no suspension or fine can be imposed unless accomplished in the manner provided for in the Bylaws. Except as provided in this Section, the Association does not have the power or authority to cause a forfeiture or abridgement of an Owner's right to the full use and enjoyment of his Lot if the Owner fails to comply with provisions of this Declaration or of the Articles, Bylaws, Association Rules or Board resolutions except by judgment of a court or a decision arising out of arbitration or on account of a foreclosure or sale under a power of sale based on the failure of the Owner to pay assessments duly levied by the Association. Any monetary penalties so assessed shall not become a lien pursuant hereto enforceable in accordance with the provisions of Section 2924, et seq. of the Civil Code.

Association does not have the power or authority to cause a forfeiture or abridgement of an Owner's right to the full use and enjoyment of his Lot if the Owner fails to comply with provisions of this Declaration or of the Articles, Bylaws, Association Rules or Board resolutions except by judgment of a court or a decision arising out of arbitration or on account of a foreclosure or sale under a power of sale based on the failure of the Owner to pay assessments duly levied by the Association. Any monetary penalties so assessed shall not become a lien, and shall not be pursuant hereto enforceable in accordance with the provisions of Civil Code Sections 2924, et seq. of the Civil Code.

VOTE: 7-0 6/6/16

5.3.1.5. Definition of Violation. For enforcement and penalty purposes, a "violation" is defined as the breaking or infringing of any rules or conditions of the CC&Rs or Bylaws of the Association. In the

5.3.1.5

Definition of Violation. For enforcement and penalty purposes, a "violation" is defined as the breaking or infringing of any rules or conditions of the CC&Rs or Bylaws of the Association. In the event of an ongoing or continuous violation, each successive 30 day period (beginning from

NO CHANGE

41

event of an ongoing or continuous violation, each successive 30 day period (beginning from the date of the initial violative action) in which the violation continues shall be defined as a new violation. Furthermore, each time a particular violation is repeated, the repeated violation shall be defined as a new violation for enforcement and penalty purposes.

the date of the initial violative action) in which the violation continues shall be defined as a new violation. Furthermore, each time a particular violation is repeated, the repeated violation shall be defined as a new violation for enforcement and penalty purposes.

VOTE: 7-0 6/6/16

5.3.2. Duties of the Association. In addition to the powers delegated to it by its Articles or in the Bylaws and without limiting their generality, the Association acting by and through the Board or persons or entities described in Section 5.3.1.3 has the obligation to conduct all business affairs of common interest to all Owners and to perform each of the following duties:

5.3.2 Duties of the Association. In addition to the powers delegated to it by its Articles or in the Bylaws and without limiting their generality, the Association acting by and through the Board of Directors or persons or entities described in Section 5.3.1.3 has the obligation to conduct all business affairs of common interest to all Owners and to perform each of the following duties:

NO CHANGE

VOTE: 7-0 6/6/16

5.3.2.1. Ownership, Operation and Maintenance of Common Area. To own the portion of the Common Area deeded to it and to operate, maintain and otherwise manage or provide for the operation. maintenance and management of all the Common Area including the streets and roads, and all its facilities, improvements and landscaping including the drainage facilities and any

Ownership, Operation and Maintenance of Common Area. To own the portion of the Common Area deeded to it and to operate, maintain and otherwise manage or provide for the operation. maintenance and management of all the Common Area including the streets and roads, and all its facilities, improvements and landscaping including the drainage facilities and any other property acquired by or subject to the control of the Association including personal property, in first-class condition and in a good state of repair

NO CHANGE

42

other property acquired by or subject to the control of the Association including personal property, in first-class condition and in a good state of repair. VOTE: 7-0 6/6/16

5.3.2.2. Association Contracts. In connection with the performance of its duties, to enter into contracts for services or materials, including contracts with Declarant, subject to the provisions of Sections 5.3.3.4 and 13.17.

Association Contracts. In connection with the performance of its duties, to enter into contracts for services or materials, including contracts with Declarant subject to the provisions of Sections 5.3.3.4 and 13.17.

NO CHANGE

Declarant (Developer) no longer applicable

VOTE: 7-0 6/6/16

5.3.2.3. Taxes and Assessments. To pay all real and personal property taxes and assessments and all other taxes levied separately against the Common Area, personal property owned by the Association or against the Association. Such taxes and assessments may be contested or compromised by the Association. provided, that they are paid or that a bond insuring payment is posted before the sale or the disposition of any property to satisfy the payment of such taxes.

Taxes and Assessments. To pay all real and personal property taxes and assessments and all other taxes levied separately against the Common Area, personal property owned by the Association or against the Association. Such taxes and assessments may be contested or compromised by the Association. provided, that they are paid or that a bond insuring ensuring payment is posted before the sale or the disposition of any property to satisfy the payment of such taxes.

NO CHANGE

Editorial only

VOTE: 7-0 6/6/16

5.3.2.4. Water and Other Utilities. To acquire, provide and pay for water, sewer, garbage disposal, refuse and rubbish collection, electrical, telephone, gas and other necessary utility services for the Common Area.

5.3.2.4

Water and Other Utilities. To acquire, provide and pay for water, sewer, garbage disposal, refuse and rubbish collection, electrical, telephone, gas and other necessary utility services for the Common Area.

NO CHANGE

VOTE: 7-0 6/6/16

5.3.2.5. Insurance. To obtain, from reputable insurance

5.3.2.5

Insurance. To obtain, from reputable insurance companies, and maintain the

NO CHANGE

43

companies, and maintain the insurance described in Section 9.

insurance described in Section 9. VOTE: 7-0 6/6/16

5.3.2.6. Enforcement of Restrictions and Rules. To perform such other acts, whether or not expressly authorized by this Declaration, that may be reasonably necessary to enforce any of the provisions of this Declaration, the Articles and Bylaws, and the Association Rules and Board resolutions.

5.3.2.6

Enforcement of Restrictions and Rules. To perform such other acts, whether or not expressly authorized by this Declaration, that may be reasonably necessary to enforce any of the provisions of this Declaration, the Articles and Bylaws, and the Association Rules and Board resolutions.

NO CHANGE

VOTE: 7-0 6/6/16

5.3.3. Limitations on Authority. Except with the written assent of members of the Association holding fifty-one percent (51%) of the voting rights of all members, the Board acting on behalf of the Association shall not take any of the following actions:

5.3.3 Limitations on Authority. Except with the written assent of members of the Association holding greater than fifty percent ( 51%) (50%) of the voting rights of all members, the Board of Directors acting on behalf of the Association shall not take any of the following actions:

NO CHANGE OF INTENT

51% equates to 52.98% of 51 lots, more than a simple majority

VOTE: 7-0 6/6/16

5.3.3.1. Incur aggregate expenditures for capital improvements to the Common Area in any fiscal year in excess of five percent (5%) of the budgeted gross expenses of the Association for that fiscal year; or

5.3.3.1

Incur aggregate expenditures for capital improvements to the Common Area in any fiscal year in excess of five percent (5%) of the budgeted gross expenses of the Association for that fiscal year; or

NO CHANGE

VOTE: 7-0 6/6/16

5.3.3.2. Sell during any fiscal year property of the Association having any aggregate fair market value greater than five percent (5%) of the budgeted gross expenses of the Association for that fiscal year; or

5.3.3.2

Sell during any fiscal year property of the Association having any aggregate fair market value greater than five percent (5%) of the budgeted gross expenses of the Association for that fiscal year; or

NO CHANGE

VOTE: 7-0 6/6/16

5.3.3.3. Pay compensation to members 5.3.3. Pay compensation to members of the NO CHANGE 44

of the Board or to officers of the Association for services performed in the conduct of the Association's business. However, the Board may cause a member of the Board or an officer to be reimbursed for expenses incurred in carrying on the business of the Association.

3 Board or to officers of the Association for services performed in the conduct of the Association's business. However, the Board of Directors may cause a member of the Board of Directors or an officer to be reimbursed for expenses incurred in carrying on the business of the Association.

VOTE: 7-0 6/6/16

5.3.3.4. Enter into a contract with a third person wherein the third person will furnish goods or services for the Common Area or the Association for a term longer than one (1) year with the following exceptions: (a) A management contract, the

terms of which have been approved by the Federal Housing Administration or Veterans Administration.

(b) A contract with a public utility company if the rates charged for the materials or services are regulated by the Public Utilities Commission provided, however, that the term of the contract shall not exceed the shortest term for which the supplier will contract at the regulated rate.

(c) Prepaid casualty and/or liability insurance policies of not to exceed three (3) years duration provided that the

5.3.3.4

Enter into a contract with a third person wherein the third person will furnish goods or services for the Common Area or the Association for a term longer than one (1) year with the following exceptions: (a) A management contract, the terms of

which have been approved by the Federal Housing Administration or Veterans Administration.

(b) A contract with a public utility company if the rates charged for the materials or services are regulated by the Public Utilities Commission provided, however, that the term of the contract shall not exceed the shortest term for which the supplier will contract at the regulated rate.

(c) Prepaid casualty and/or liability insurance policies of not to exceed three (3) years duration provided that the policy permits for short rate cancellation by the insured.

NO CHANGE

VOTE: 7-0 6/6/16

45

policy permits for short rate cancellation by the insured.

5.4. Personal Liability. No member of the Board, or of any committee of the Association or any officer of the Association, shall be personally liable to any Owner, or to any other party, including, the Association, for any damage, loss or prejudice suffered or claimed on the account of any act, omission, error or negligence of any such person or entity, if such person or entity has, upon the basis of such information as may be possessed by him or it, acted in good faith without willful or intentional misconduct.

5.4 Personal Liability. No member of the Board of Directors, or of any committee of the Association or any officer of the Association, shall be personally liable to any Owner, or to any other party, including, the Association, for any damage, loss or prejudice suffered or claimed on the account of any act, omission, error or negligence of any such person or entity, if such person or entity has, upon the basis of such information as may be possessed by him or it, acted in good faith without willful or intentional misconduct.

NO CHANGE

VOTE: 7-0 6/6/16

5.5. Regular Meetings and Notice. 5.5.1. Regular meetings of the members of

the Association shall be held at least once in each year at a time and place within the county as prescribed in the Bylaws or as selected by the Board. Meetings shall be held at a meeting place either within the subdivision or at a meeting place as close thereto as possible. Unless unusual conditions exist, members meetings shall not be held outside of San Luis Obispo County. Special meetings may be called as provided for in the Bylaws. Notice of all members' meetings, regular or special shall be given by first class mail, personal delivery or telegram to all Owners and to any mortgagee who has requested in writing that such notice be sent to it and shall be given not less than ten

5.5

5.5.1

Regular Meetings and Notice.

5.5.1. Regular meetings of the members of the Association shall be held at least once in each year at a time and place within the county as prescribed in the Bylaws or as selected by the Board of Directors. Meetings shall be held at a meeting place either within the subdivision or at a meeting place as close thereto as possible. Unless unusual conditions exist, members meetings shall not be held outside of San Luis Obispo County. Special meetings may be called as provided for in the Bylaws. Notice of all members' meetings, regular or special shall be given by first class mail,

CHANGE OF INTENT

Rational: Updated this section to reflect the elimination of proxies as ballots now count as quorum. Also updated percentage to greater than 50% to reflect a simple majority vote per Roberts Rules.

46

(10) days nor more than ninety (90) days before the time of the meeting and shall set forth the place, date, and hour of the meeting. and the nature of the business to be undertaken. Any mortgagee, through its designated representative, shall be entitled to attend any such meeting but shall not be entitled to vote at the meeting. The presence at any meeting in person or by proxy of members entitled to cast at least fifty one percent (51%) of the total votes of all members of the Association shall constitute a quorum. If any meeting cannot be held because a quorum is not present, members representing a majority of the votes present, either in person or by proxy, may adjourn the meeting to a time not less than five (5) days nor more than thirty (30) days from the date the original meeting was called, at which adjourned meeting the quorum requirement shall be at least twenty-five percent (25%) of the total votes. If a time and place for the adjourned meeting is not fixed by those in attendance at the original meeting or if for any reason a new date is fixed for the adjourned meeting after adjournment, notice of the time and place of the adjourned meeting shall be given to members in the manner prescribed for regular meetings. Any meeting of members at which a quorum is present may be adjourned

personal delivery, or telegram, or electronic (e.g., email) delivery for any Member who has consented, in writing, to that method of delivery to all Owners and to any mortgagee who has requested in writing that such notice be sent to it and shall be given not less than ten (10) days nor more than ninety (90) days before the time date of the meeting and shall set forth the place, date, and hour of the meeting. and the nature of the business to be undertaken. Any mortgagee, through its designated representative, shall be entitled to attend any such meeting but shall not be entitled to vote at the meeting. The presence at any meeting in person or by proxy ballot of members entitled to cast at least fifty one percent (51%) greater than fifty percent (50%) of the total votes of all members of the Association shall constitute a quorum. If any meeting cannot be held because a quorum is not present, members representing a majority of the votes present, either in person or by proxy, the meeting may shall adjourned the meeting to a time not less than five (5) days nor more than thirty (30) days from the date the original meeting was called, at

Electronic (e.g., email)for members who have consented per Civil Code 4040)

47

for any reason to a time not less than forty-eight (48) hours nor more than thirty (30) days from the time of such meeting by members representing a majority of the votes present in person or by proxy.

which adjourned meeting the quorum requirement shall be at least twenty-five percent (25%) of the total votes. If a time and place for the adjourned meeting is not fixed by those in attendance at the original meeting or if for any reason a new date is fixed for the adjourned meeting after adjournment, nNotice of the time and place of the adjourned newly-noticed meeting shall be given to members in the manner prescribed for regular meetings. Any meeting of members at which a quorum is physically present may be adjourned for any reason to a time not less than forty-eight (48) hours nor more than thirty (30) days from the time of such meeting by members in attendance representing a majority of the votes present in person. or by proxy ballot.

VOTE: 7-0 6/6/16

5.5.2. Conduct of Business. An agenda shall be published along with the notice for each meeting. The agenda may be reviewed immediately after roll call for any last minute changes. Changes to the agenda must be approved by a majority of the quorum prior to the agenda being modified.

5.5.2 Conduct of Business. An agenda shall be published along with the notice for each meeting. The agenda may be reviewed immediately after roll call for any last minute changes. Changes to the agenda must be approved by a majority of the quorum prior to the agenda being modified.

5.6. Financial Statements of the Association.

5.6.1. The Association shall prepare, or cause

5.6 Financial Statements and Finances of the Association.

NO CHANGE OF INTENT

EDITIORAL ONLY48

to be prepared, an annual report for each fiscal year. The annual report shall consist of a balance sheet rendered as of the last day of each fiscal year, an operating statement and statement of changes in financial position rendered for the fiscal year they cover, and any information required to be reported under Section 8322 of the California Corporations Code. The annual report shall be distributed to all Owners within one hundred twenty (120) days after the close of the fiscal year. In any fiscal year in which the gross receipts of the Association exceed seventy-five thousand dollars ($75,000.00), the annual report shall be prepared by an independent public accountant prepared in accordance with generally accepted accounting principles. Any annual report not prepared by an independent public accountant shall be accompanied by the certificate of an officer of the Association that the report was prepared without audit from the books and records of the Association. In lieu of the distribution of the proforma operating budget required by this Article, the Board of Directors may elect to distribute a summary of the statements to all the members with a written notice that the statements are available at the business office of the Association or at another suitable location within the boundaries of the development and that copies will be provided upon request and at the expense of the Association. If any member requests copies of the proforma operating budget to be mailed to the member, the Association shall provide the copy to the member by first-class

5.6.1 5.6.1 The Association shall prepare, or cause to be prepared, an annual report for each fiscal year. The annual report shall consist of a balance sheet rendered as of the last day of each fiscal year, an operating statement and statement of changes in financial position rendered for the fiscal year they cover, and any information required to be reported under Section 8322 of the California Corporations Code. The annual report shall be distributed to all Owners within one hundred twenty (120) days after the close of the fiscal year. In any fiscal year in which the gross receipts of the Association exceed seventy-five thousand dollars ($75,000.00), the annual report shall be prepared by an independent public accountant and prepared in accordance with generally accepted accounting principles. Any annual report not prepared by an independent public accountant shall be accompanied by the certificate of an officer of the Association that the report was prepared without audit from the books and records of the Association. In lieu of the distribution of the pro forma operating budget required by this Article, the Board of Directors may elect to distribute a summary of the statements to all the members with a written notice that the statements are available at the business office of the Association or at another suitable location within the boundaries of the development and that copies will be provided upon request and at the expense of the Association. If any

Updated section heading to better reflect content. Changed “copies” to “a copy.”

Note: The following codes apply: Civil Code 5305

(Review of Financial Statement)

Civil Code 4040 (Providing Notice or Delivery to Individuals)

Corporations Code 8321 (Annual Report; Notice of Right to Receive Report)

Corporations Code 8322 (Annual Report; Notice of Indemnification; Covered Transactions)

49

United States mail at the expense of the Association and delivered within five (5) days. The written notice that is distributed to each of the Association members shall be in at least 10-point bold type on the front page of the summary of the statements.

member requests copies a copy of the pro forma operating budget to be mailed to the member, the Association shall provide the copy to the member by first-class United States mail at the expense of the Association and delivered within five (5) days. The written notice that is distributed to each of the Association members shall be in at least 10-point bold type on the front page of the summary summaries of the statements.

VOTE: 7-0 6/6/16

5.6.2. A pro forma operating statement or budget shall be prepared in accordance with Section 7.4.1.1.

5.6.2 A pro forma operating statement or budget shall be prepared in accordance with Section 7.4.1.1 7.4.2.1.

EDITORIAL ONLY

VOTE: 7-0 6/6/16

5.6.3. Copies of each of the above financial statements for the Association shall be mailed to any mortgagee who has requested their receipt in writing.

5.6.3 Copies of each of the above financial statements for the Association shall be mailed to any mortgagee who has requested their receipt in writing.

NO CHANGE

VOTE: 7-0 6/6/16

5.6.4. In addition to financial statements, the Board shall annually distribute within 60 days prior to the beginning of the fiscal year, a statement of the Association's policies and practices in enforcing its remedies against members for defaults in the payment of regular and special assessments including the recording and foreclosing of liens against members' subdivision interests.

5.6.4 In addition to financial statements, the Board of Directors shall annually distribute within sixty (60) days prior to the beginning of the fiscal year, a statement of the Association's policies and practices in enforcing its remedies against members for defaults in the payment of regular and special assessments including the recording and foreclosing of liens against members' subdivision interests.

NO CHANGE

VOTE: 7-0 6/6/16

The Board shall, not less frequently than quarterly:

5.6.4.1. Cause a current reconciliation of the Association's operating accounts to be made and review the same.

5.6.5

5.6.5.1

The Board of Directors shall, not less frequently than quarterly:

Cause a current reconciliation of the Association's operating accounts to be made and review the same.

NO CHANGES

Provided specific section number for this section and renumbered all subordinate steps accordingly.

50

VOTE: 7-0 6/6/16

5.6.4.2. Cause a current reconciliation of the Association's reserve accounts to be made and review the same.

5.6.5.2

Review the current year's actual reserve revenues and expenses compared to the current year's budget.

EDITORIAL ONLY

Renumbered

VOTE: 7-0 6/6/165.6.4.3. Review the current year's actual

reserve revenues and expenses compared to the current year's budget.

5.6.5.3

Review the current year's actual reserve revenues and expenses compared to the current year's budget.

EDITORIAL ONLY

Renumbered

VOTE: 7-0 6/6/16

5.6.4.4. Review the most current account statements prepared by the financial institution where the Association has its operating and reserve accounts.

5.6.5.4

Review the most current account statements prepared by the financial institution where the Association has its operating and reserve accounts.

EDITORIAL ONLY

Renumbered

VOTE: 7-0 6/6/16

51

5.6.4.5. Review an income and expense statement for the Association's operating and reserve accounts.

5.6.5.5

Review an income and expense statement for the Association's operating and reserve accounts.

EDITORIAL ONLY

Renumbered

VOTE: 7-0 6/6/16

5.6.4.5 Withdrawal of funds from the Association’s reserves shall require the signatures of two (2) members of the Board.

5.6.5.6

5 Withdrawal of funds from the Association’s reserves shall require the signatures of two (2) members of the Board of Directors.

EDITORIAL ONLY

Renumbered

VOTE: 7-0 6/6/16

5.7. Inspection of Association Books and Records.

5.7.1. Any membership register including mailing address and telephone number, books of account and minutes of meetings of the members, the Board and committees of the Board of the Association, shall be made available for inspection and copying by any member of the Association, or his duly appointed representative, or any mortgagee, at any reasonable time and for a purpose reasonably related to his interest as a member, at the office of the Association or at such other place within the county as the Board prescribes.

5.7

5.7.1

Inspection of Association Books and Records

Any membership register including mailing address and telephone number, books of account and minutes of meetings of the members, the Board of Directors and committees of the Board of the Association, shall be made available for inspection and copying by any member of the Association, or his duly appointed representative, or any mortgagee, at any reasonable time and for a purpose reasonably related to his interest as a member, at the office of the Association or at such other place within the county as the Board of Directors prescribes.

NO CHANGE

VOTE: 7-0 6/6/16

5.7.2. The Association shall establish by resolution of the Board reasonable rules with respect to:

5.7.2 The Association shall establish by resolution of the Board of Directors reasonable rules with respect to:

NO CHANGE

VOTE: 7-0 6/6/16

5.7.2.1. Notice to be given to the custodian of the records of the Association by the member,

5.7.2.1

Notice to be given to the custodian of the records of the Association by the member, representative or mortgagee desiring to

NO CHANGE OF INTENT

52

representative or mortgagee desiring to make an inspection.

make an inspection. VOTE: 7-0 6/6/16

53

5.7.2.2. Hours and day of the week when an inspection may be made.

5.7.2.2

Hours and day of the week when an inspection may be made.

NO CHANGEVOTE: 7-0 6/6/16

5.7.2.3. Payment of the cost of reproducing copies of documents requested by a member or by a representative or mortgagee.

5.7.2.3

Payment of the cost of reproducing copies of documents requested by a member or by a representative or mortgagee.

NO CHANGE

VOTE: 7-0 6/6/16

5.7.3. Every director of the Association shall have the absolute right at any reasonable time to inspect all books, records and documents of the Association and the physical properties owned or controlled by the Association. The right of inspection by a director includes the right to make extracts and copies of documents.

5.7.3 Every director of the Association shall have the absolute right at any reasonable time to inspect all books, records and documents of the Association and the physical properties owned or controlled by the Association. The right of inspection by a director includes the right to make extracts and copies of documents.

NO CHANGE

VOTE: 7-0 6/6/16

54

55

SECTION 6. MEMBERSHIP AND VOTING RIGHTS

6.1. Membership.

6.1.1. Qualifications. Each Owner shall be a member of the Association. Each Owner shall hold one (1) voting membership in the Association for each lot in which he has an ownership or ownership interest. Ownership of a Lot or interest in it shall be the sole qualification for membership in the Association. Each Owner shall remain a member of the Association until his ownership or ownership interest in all Lots ceases at which time his membership in the Association shall automatically cease. Persons or entities who hold an interest in a Lot merely as security for performance of an obligation are not to be regarded as members

6.1

6.1.1

Membership.

Qualifications. Each Owner shall be a member of the Association. Each Owner shall hold one (1) voting membership in the Association for each lot in which he has an ownership or ownership interest. Ownership of a Lot or interest in it shall be the sole qualification for membership in the Association. Each Owner shall remain a member of the Association until his ownership or ownership interest in all Lots ceases at which time his membership in the Association shall automatically cease. Persons or entities who hold an interest in a Lot merely as security for performance of an obligation are not to be regarded as members

NO CHANGE

VOTE: 7-0 2/8/16

6.1.2. Members' Rights and Duties. Each member shall have the rights, duties, and obligations set forth in this Declaration, the Articles, the Bylaws and the Association Rules.

6.1.2 Members' Rights and Duties. Each member shall have the rights, duties, and obligations set forth in this Declaration, the Articles, the Bylaws and the Association Rules.

NO CHANGE

VOTE: 7-0 2/8/166.1.3. Transfer of Membership. The

Association membership of each person or entity who owns, or owns an interest in, one (1) or more Lots shall be appurtenant to each such Lot and shall not be assigned, transferred, pledged,

6.1.3 Transfer of Membership. The Association membership of each person or entity who owns, or owns an interest in, one (1) or more Lots, shall be appurtenant to and non-severable from each such Lot and shall not be assigned, transferred, pledged, hypothecated, conveyed or

NO CHANGE OF INTENT

Edited for charity and simplification.

56

hypothecated, conveyed or alienated in any way except on a transfer of title to each such Lot or interest in it and then only to the transferee. Any attempt to make a prohibited transfer shall be void. Any transfer of title to a Lot or interest in it shall operate automatically to transfer the appurtenant membership rights in the Association to the new Owner.

alienated in any way except upon the transfer of title to each such Lot, or interest in it, and, then, only to the transferee. Any attempt to make such a prohibited transfer shall be void. Any transfer of title to a Lot or interest in it shall operate automatically to transfer the appurtenant membership rights in the Association to the new Owner.

TABLED 2/8/16VOTE:: 7-0 3/14/16

6.2. Nominations. Nomination for election to the board shall be made by a nominating committee consisting of three (3) persons. Nominations may also be made from the floor at each annual meeting. The nominating committee shall consist of a chairman, who shall be a member of the board, and two (2) other members who shall be members of the Association. Each member of the nominating committee shall be appointed by the board to serve for a period of one year, and vacancies thereon shall be filled by the board. The nominating committee shall make as many nominations for election to the board as it shall, in its discretion, determine, but not less than the number of vacancies to be filled. Such nominations shall be made from among members.

6.2 Nominations. Nomination for election to the Board of Directors shall be made by a nominating committee consisting of three (3) persons. Nominations may also be made from the floor at each annual meeting. The nominating committee shall consist of a chairman, who shall be a member of the Board of Directors, and two (2) other members who shall be members of the Association. Each member of the nominating committee shall be appointed by the Board of Directors to serve for a period of one year, and vacancies thereon shall be filled by the Board of Directors. The nominating committee shall make as many nominations for election to the Board of Directors as it shall, in its discretion, determine, but not less than the number of vacancies to be filled. Such nominations shall be made from among members. Nominations from the floor shall not be allowed. Write-in candidates shall be allowed on the ballots and may include self-nominations. Any person who writes in a candidate’s name shall confirm that the write-in candidate is willing to serve.

CHANGE OF INTENT

Rationale: (1) Deleted “floor nominations” to simplify the process as recommended by Davis-Stirling.com. It should be noted that members cannot change or revoke their vote once their ballots are mailed or hand delivered to the inspector of elections (Civil Codes §5110, §5120, and §5125).

(2) Added “write-in candidates” to explicitly allow this provision as floor nominations will no longer be allowed (Civil Code §5105). The bylaws should be changed to ensure that the ballots contain a statement that states the following

57

or similar: “Any member who writes in a candidate’s name shall warrant that the candidate is willing to serve.”

VOTE: 7-0 2/8/16VOTE: 7-0 3/14/16

6.3. Voting.

6.3.1. Number of Votes. Each Association member shall be entitled to one vote for each Lot or Lots in which he owns an interest. However, when more than one member owns an interest in a Lot, the vote for the Lot shall be exercised as Owners themselves determine, but in no case shall more than one vote be cast with respect to any one (1) Lot.

6.3

6.3.1

6.3. Voting.

Number of Votes. Each Association member shall be entitled to one vote for each Lot or Lots in which he owns an interest. However, when more than one member owns an interest in a Lot, the vote for the Lot shall be exercised as Owners themselves determine, but in no case shall more than one vote be cast with respect to any one (1) Lot.

NO CHANGE

VOTE: 7-0 2/8/16

6.3.2. Joint Owner Votes. The voting rights for each Lot may not be cast on a fractional basis. If the joint Owners of a Lot are unable to agree among themselves as to how their voting rights shall be cast, they shall forfeit the vote on the matter in question. If any Owner exercises the voting rights of a particular Lot, it will be conclusively presumed for all purposes that he was acting with the authority and consent of all other Owners of the same Lot. If more than one (1) person or entity exercises the voting rights for a particular Lot, their votes shall not be counted and shall be deemed void.

6.3.2 Joint Owner Votes. The voting rights for each Lot may not be cast on a fractional basis. If the joint Owners of a Lot are unable to agree among themselves as to how their voting rights shall be cast, they shall forfeit the vote on the matter in question. If any Owner exercises the voting rights of a particular Lot, it will be conclusively presumed for all purposes that he was acting with the authority and consent of all other Owners of the same Lot. If more than one (1) person or entity exercises the voting rights for a particular Lot, their votes shall not be counted and shall be deemed void.

NO CHANGE

VOTE: 7-0 2/8/16

58

6.3.3. Cumulative Voting. Election to and removal from the Board shall be by cumulative voting, as defined in California Corporations Code, Section 7615, provided, however, that as to election, a member shall be entitled to cumulate his votes for one (1) or more candidates for the Board only if the candidate's name has been placed in nomination prior to voting, and if the member has given notice at the meeting prior to the voting of his intention to cumulate votes. If any member has given such notice, then all members shall have the right to cumulate votes as provided herein. Each Owner shall be entitled to vote, in person or by proxy, as many votes as such Owner is entitled to exercise as provided in this Declaration multiplied by the number of directors to be elected or removed, and he may cast all of such votes for or against a single candidate or director, or he may distribute them among the number of candidates or directors to be elected or removed, or any two (2) or more of them. The candidates receiving the highest number of votes up to the number of Board members to be elected shall be deemed elected. As to removal, unless the entire Board is removed by a vote of Association members an individual director shall not be removed unless the number of votes in favor of removal satisfies the requirements of

6.3.3

6.3.3.1

6.3.3.2

6.3.3.3

6.3.3.4

Cumulative Voting Voting, Elections, or Removal of Board Directors

Voting by Secret Ballot. Voting on Amendments to this Declaration, the Bylaws, Articles, Assessments requiring a vote, election or removal of Directors, and granting of exclusive use of the Common Area shall be by secret written ballot.

Election and Removal of Directors. Each owner shall be entitled to vote as many votes for directors as such Owner is entitled to exercise pursuant to Section 6.3.1 herein, multiplied by the number of directors to be elected or removed. Cumulative voting shall not be allowed. Directors shall be elected at the regular annual meeting of the members of the Association pursuant to Section 5.5.1 herein. The candidates receiving the highest number of votes up to the number of directors to be elected shall be deemed elected. Any or all directors may be removed without cause if the removal is approved by the affirmative vote of a majority of the votes represented at a duly held meeting at which a quorum is present.

6.3.3.3. Write-In Candidates. Write-in candidates on the secret written ballot shall be allowed pursuant to Section 6.2 herein. Accordingly, elections shall be held even if they are otherwise uncontested.

Change of intent.

Summary:• Cumulative voting

is being replaced with the traditional voting practice that members are accustomed to (see below for rationale).

• Voting by secret ballot as described herein is required by Civil Code 5100.

• Removal of directors as described herein is required by Corporations Code 7222.

• The allowance for write-in candidates permits voting for members other than those identified by the nominating committee per Civil Code 5105.

• New Section 6.3.3.4 provides direction to document voting and election rules and procedures in the Association Bylaws that meet that applicable civil and corporations codes.

• Refer to Section 6.3.4 for the

59

California Corporations Code, Section 7222(b)(1).

6.3.3.5

Compliance with Civil Code and Corporations Code. The Association Bylaws shall adopt voting and election rules and procedures that comply with Civil Code Sections 5100 through 5145 and California Corporations Code Sections 7510 through 7617 where applicable.

Proxy Votes. Proxy votes shall not be allowed.

rational for eliminating proxies.

Rationale for eliminating Cumulative Voting per Davis-Stirling.com et al:• Cumulative voting

is automatically included in a new homeowner association's bylaws to give owners a voice when the association is controlled by the developer. Once the developer is out of the picture, there is no need for cumulative voting.

• Most legal authorities recommend eliminating cumulative voting once the development is effectively built out.

• There are no true benefits to cumulative voting. No municipal, county, state, or federal election procedure uses it.

• Cumulative voting for use in HOA elections is banned or

60

disfavored by some states.

• Cumulative voting is intended for use by stock corporations so small shareholders can have a voice.

• All else being equal, cumulative voting cannot mathematical produce different results than standard voting.

• As described in Robert's Rules of Order: “...this method of voting…must be viewed with reservation since it violates the fundamental principle of parliamentary law that each member is entitled to one and only one vote on a question.” (Robert's Rules, 11th ed., p. 444.)

• The California Association of Home Owners’ Association and the League of Women Voters also recommended against cumulative voting.

VOTE: 7-0 2/8/16 VOTE: 7-0 3/14/16

6.3.4. Proxies. At all meetings of members each Delete entire Section 6.3.4. Proxies CHANGE OF INTENT61

member may vote in person or by proxy. All proxies shall be in writing and filed with the Secretary before the appointed time of each meeting. Every proxy shall be revocable and shall automatically cease upon conveyance by the member of his lot, or upon receipt of written notice by the secretary of the board of the death or judicially declared incompetence of a member prior to the counting of the vote, or upon expiration of 11 months from the date of the proxy. Any form of proxy distributed by any person to the membership of the association shall afford an opportunity to specify a choice between each matter, or group of related matters, to be acted upon. The proxy shall provide that, where the member provides a choice, the vote shall be cast in accordance with that choice. The proxy also shall identify the person or persons authorized to exercise the proxy and the length of time it shall be valid.

Rational: Because ballots received by the inspector of elections count toward quorum, proxies are no longer needed (Civil Code §5115). This change is recommended by Davis-Stirling.com as it simplifies the process and reduces the potential for fraud.

VOTE: 7-0 2/8/16

62

SECTION 7. ASSESSMENTS.

7.1. Agreement to Pay. Each purchaser of a Lot by his acceptance of a deed covenants and agrees, for each Lot owned, to pay to the Association regular assessments and special assessments, such assessments to be established, made and collected as provided in this Declaration.

7.1

Agreement to Pay. Each purchaser of a Lot by his acceptance of a deed covenants and agrees, for each Lot owned, to pay to the Association regular assessments and special assessments, with such assessments to be established, made and collected as provided in this Declaration.

EDITORIAL CHANGES ONLY

VOTE: 7-0 4/11/16

7.2. Personal Obligations. Each assessment or installment, together with any late charge, interest, collection costs and reasonable attorneys' fees, shall be the personal obligation of the person or entity who was an Owner at the time of such assessment, or installment became due and payable. If more than one (1) person or entity was the Owner of a Lot, the personal obligation to pay such assessment, or installment respecting such Lot shall be both joint and several. The personal obligation for delinquent assessments, or delinquent installments and other such sums, shall not pass to an Owner's successor in interest unless expressly assumed by them. No Owner may exempt himself from payment of assessments, or installments, by waiver of the use or enjoyment of all or any portion of the Common Area or by waiver of the use or enjoyment of, or by abandonment of, his Lot.

7.2 Personal Obligations. Each assessment or installment, together with any late charge, interest, collection costs and reasonable attorneys' fees, shall be the personal obligation of the person or entity who was an Owner at the time of such assessment, or installment became due and payable. If more than one (1) person or entity was the Owner of a Lot, the personal obligation to pay such assessment, or installment respecting such Lot shall be both joint and several. The personal obligation for delinquent assessments, or delinquent installments and other such sums, shall not pass to an Owner's successor in interest unless expressly assumed by them. No Owner may exempt himself from payment of assessments, or installments, by waiver of the use or enjoyment of all or any portion of the Common Area or by waiver of the use or enjoyment of, or by abandonment of, his Lot.

NO CHANGE

VOTE: 7-0 4/11/16

7.3. Purpose of Assessments. The assessments levied by the Association

7.3 Purpose of Assessments. The assessments levied by the Association shall be used

EDITORIAL CHANGES ONLY

63

shall be used exclusively to promote the recreation, health, safety, and welfare of the members of the Association the improvement, replacement, repair, operation and maintenance of the Common Area or other Association owned or maintained property, and the performance of the duties of the Association as set forth in this Declaration.

exclusively to promote the recreation, health, safety, and welfare of the members of the Association, the improvement, replacement, repair, operation and maintenance of the Common Area or other Association owned or maintained property, and the performance of the duties of the Association as set forth in this Declaration.

Added comma after second instance of Association.

VOTE: 7-0 4/11/16

7.4. Assessments.

7.4.1. Regular Assessments.

7.4.1.1. Not less than forty-five (45) days or more than sixty (60) days before Prior to the beginning of each fiscal year of the Association, the Association shall prepare or cause to be prepared a pro forma operating budget for the immediately ensuing fiscal year and shall distribute a copy of it to each Owner and to each mortgagee which has requested in writing that copies be sent to it. Any Owner or mortgagee may make written comments to the Association with respect to said pro forma operating statement. The pro forma operating statement shall be

7.4

7.4.1

7.4.2

7.4.2.1

Retitle Section 7.4 as Regular Assessments, and replace Section 7.4.1.1 and 7.4.1.2 content with the following Section 7.4.1, 7.4.2, and 7.4.3 content:

Regular Assessments

Payment of Regular Assessments. The regular assessment for each fiscal year shall be established when the Board approves the budget for that fiscal year, which budget shall be prepared in accordance with the provisions of this Declaration. Regular assessments shall be levied on a fiscal year basis. Unless otherwise specified by the Board, regular assessments shall be due and payable in monthly installments on the first day of each month during the term of this Declaration.

Budgeting. Each year the Board shall prepare, approve, and make available to each Owner a budget as follows:

The Board shall annually prepare a pro forma operating budget for the

CHANGE OF INTENT but does not fundamentally change how assessments are determined (no practical impact to Members).

VOTE: 7-0 4/11/16

Restructured this section into two sections; 7.4 for regular assessments and 7.5 for special assessments.

VOTE: 7-0 4/11/16

Rearranged and added wording to show the process for budgeting and determining regular assessments per

64

prepared consistently with the prior fiscal year's operating statement and shall include adequate reserves for contingencies and for maintenance, repairs and replacement of the Common Area improvements and other Association owned or maintained improvements or personal property likely to need maintenance, repair or replacement, which reserves shall be sufficient to satisfy the requirements of any institutional mortgagee. The budget shall include:

7.4.1.1.1. Estimated revenue and expenses calculated on an accrual basis.

7.4.1.1.2. The amount of the total cash reserves of the Association currently available for replacement or major repair of common facilities and for contingencies.

7.4.1.1.3. An itemized estimate of the current replacement costs of, the estimated remaining life of, and the methods of funding used

7.4.2.2

7.4.2.3

immediately ensuing fiscal year that encompasses all expenses for the fiscal year including contributions to reserves. This budget shall be prepared consistently with the prior fiscal year's operating statement and shall include adequate reserves for contingencies and for maintenance, repairs and replacement of the Common Area improvements and other Association owned or maintained improvements or property likely to need maintenance, repair or replacement, which reserves shall be sufficient to satisfy the requirements of any institutional mortgagee.

The draft budget shall be put on the agenda of an open Board meeting for review and approval by the Board. Approval of the budget and the satisfactory completion of Section 7.4.2.3 of this Declaration are sufficient for any increase in the regular assessment by up to twenty percent (20%) of the Association’s preceding fiscal year. Assessment increases greater than twenty percent (20%) of the Association’s preceding fiscal year shall not be imposed unless they are approved by the Members in accordance with the provisions of Section 7.4.3 of this Declaration.

Once the budget has been approved by the Board, the Board shall prepare an Annual Budget Report pursuant to Civil Code 5300 that includes the following: (a) A pro forma operating budget for the

Davis-Stirling.com. Some content taken from Cypress Ridge CC&Rs.

VOTE: 7-0 4/11/16

Changed from “more than 120% of the preceding fiscal year” to “more than 20% greater than the preceding fiscal year” (same meaning, difference words).

VOTE: 7-0 4/11/16

Updated the content of the Annual Budget Report per Civil Code 5300.

Set notification period to 30-60 days to support the 30-90 day requirement of Civil Code 5300 (Annual Budget Report) and the 30-60 day requirement of Civil Code 5615

65

to defray the costs of future repair, replacement or additions to those major components of the Common Areas and facilities for which the Association is responsible or obligated to maintain.

7.4.1.1.5 A ratio of cash reserves to required reserves.

7.4.1.1.6. A statement as to whether the Board has determined or anticipates the need for one or more special assessments to defray the future repair, replacement or revisions to the Common Area

immediately ensuing fiscal year, showing the estimated revenue and expenses on an accrual basis.(b) A summary of the Association’s reserves, including the ratio of cash reserves to required reserves.(c) A summary of the reserve funding plan adopted by the Board of Directors . (d) A statement as to whether the Board of Directors has determined to defer or not undertake repairs or replacement of any major component with a remaining life of 30 years or less, including a justification for the deferral or decision not to undertake the repairs or replacement.(e) A statement as to whether the Board of Directors has determined or anticipates that the levy of one or more special assessments will be required to repair, replace, or restore any major component or to provide adequate reserves therefor. If so, the statement shall also set out the estimated amount, commencement date, and duration of the assessment.(f) A statement as to the mechanism or mechanisms by which the Board of Directors will fund reserves to repair or replace major components, including assessments, borrowing, use of other assets, deferral of selected replacements or repairs, or alternative mechanisms. (g) A general statement addressing the procedures used for the calculation and establishment of those reserves to defray the future repair, replacement, or additions to those major components that the Association is obligated to maintain.

(Notice of Assessment Increase).

VOTE: 7-0 4/11/16

Included requirement to include the Reserve Funding Disclosure Form per Civil Code 5570.

Eliminated Corp Code reference to proxies (7613) per change to Section 6.3.

Rational: Improve understanding of the budgeting and assessment process, incorporate the latest Civil Code requirements, and align content with Section 6.3 (voting).

Formerly 7.4.1.1 66

7.4.2.4

7.4.3

(h) A statement as to whether the Association has any outstanding loans with an original term of more than one year, including the payee, interest rate, amount outstanding, annual payment, and when the loan is scheduled to be retired.(i) A summary of the Association’s insurance policies.

The Annual Budget Report shall be distributed to the Owners not less than 30 nor more than 60 days before the end of the Association's fiscal year. This report shall also be sent to each Mortgagee which has requested in writing that copies be sent to it. The Assessment and Reserve Funding Disclosure Summary form, prepared pursuant to Civil Code 5570, shall accompany each Annual Budget Report.

Limitations on Regular Assessments. The Board of Directors may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the Association’s preceding fiscal year without the approval by vote or written consent of Members holding greater than fifty -one percent ( 51% 50%) of the voting rights of all Members. The voting shall be conducted in accordance with Title   1, Division 2, Part 3, Chapter 5 (commencing with Section 7510) of the Corporations Code.

Content

VOTE: 7-0 4/11/16

NO CHANGE

Formerly 7.4.1.2 Content

Requires 51% to amend per CCR 14.1

VOTE: 7-0 4/11/16

7.4.4 Unless the Association or its assessment income shall be exempt from federal or state income taxes, to the extent possible, all

NO CHANGE

Formerly 7.4.1.3 Content

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reserves shall be accounted for and handled as contributions to the capital of the Association and as trust funds segregated from the regular income of the Association or in such other manner authorized by law or regulations of the Internal Revenue Service and the California Franchise Tax Board as will prevent such funds from being taxed as income of the Association.

VOTE: 7-0 4/11/16

7.5

7.5.1

7.5. Special Assessments

Determining Need for Special Assessments. If the Board determines that the estimated total amount of funds necessary to defray the common expenses of the Association for a given fiscal year is or will become inadequate to meet expenses for any reason. including, but not limited to, unanticipated delinquencies, costs of construction, unexpected repairs or replacements of capital improvements on the Common Area or otherwise, the Board of Directors shall determine the approximate amount necessary to defray such expenses, and if the amount is approved by a majority vote of the Board of Directors it shall become a special assessment. The Association may, in the discretion of the Board of Directors, pro rate such special assessment over the remaining months of the fiscal year or levy the assessment immediately against each Lot. As used herein, the term "special assessments" shall not include charges to or obligations of an Owner or group of Owners incurred as a result of action by the Association to bring the Owner or group of Owners or their Lots into

NO CHANGE OF INTENT

Formerly 7.4.2 Content

Moved Special Assessments to its own Section 7.5 and changed 7.4.2 title from “Special Assessments” to “Determining Need for Special Assessments.”

Rational: Improve document organization.

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compliance with the provisions of this Declaration, the Articles, the Bylaws or the Association Rules. Unless exempt from federal or state income taxation, all proceeds from any special assessment shall be segregated and deposited into a special account and shall be used solely for the purpose or purposes for which it was levied or it shall be otherwise handled and used in a manner authorized by law or regulations of the Internal Revenue Service or the California Franchise Tax Board in order to avoid, if possible, its taxation as income of the Association.

VOTE: 7-0 4/11/16

7.5.2 Limitation Respecting Special Assessments. The foregoing notwithstanding, any special assessment which, singly or in the aggregate with previous special assessments for the fiscal year in which such special assessment is levied would amount in excess of five percent (5%) of the budgeted gross expense of the Association for that fiscal year, shall require approval by vote or written consent of Members holding at least greater than fifty one percent (51%) (50%) of the voting rights of all members. The voting shall be conducted in accordance with Title   1, Division 2, Part 3, Chapter 5 (commencing with Section 7310 7510) of the Corporations Code and Section 7613 of the Corporation Code.

CHANGE OF INTENT

Formerly 7.4.3 Content

Eliminated Corp Code reference to proxies (7613) and fixed typo reference to Section 7310. Also initial capitalized “Members.”

Rational: Align content with changes made to Section 6.3 (voting).

Requires 51% to amend per CCR 14.1

VOTE: 7-0 4/11/16

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7.5.3 Emergency Special Assessments. Notwithstanding any other provisions contained in this section, the Board of Directors may increase assessments necessary for emergency situations. For purposes of this section, an emergency situation is any one of the following:

(a) An extraordinary expense required by an order of a court.

(b) An extraordinary expense necessary to repair or maintain subdivided property or any part of it for which the Association is responsible where a threat to personal safety on the property is discovered.

(c) An extraordinary expense necessary to repair or maintain the subdivided property or any part of it for which the Association is responsible that could not have been reasonably foreseen by the Board of Directors in preparing and distributing the pro forma operating budget. However, prior to the imposition or collection of an assessment under this section, the Board of Directors shall pass a resolution containing written findings as to the necessity of the extraordinary expense involved and why the expense was not or could not have been reasonably foreseen in the budgeting process, and the resolution shall he distributed to the members with the notice of assessment

NO CHANGE

Renumbered

Formerly 7.4.4 Content

VOTE: 7-0 4/11/16

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7.4.1.2. Not more than ninety (90) days nor less than sixty (60) days before Prior to the beginning of each fiscal year of the Association, the Board shall meet for the purpose of establishing the regular annual assessment for the forthcoming fiscal year. At such meeting the Board shall review the pro forma operating statement or budget, and any written comments received and any other information available to it and, after making any adjustments that the Board deems appropriate, without a vote of the members of the Association, shall establish the regular assessment for the forthcoming fiscal year. However, the Board may not establish a regular assessment for any fiscal year of the Association which is more than one hundred twenty percent (120%) of the regular assessment of the prior fiscal year of the Association without the approval by vote or written consent of members holding fifty-one percent (51%) of the voting rights of all members. Not less than sixty (60) days Not more than sixty (60) days nor less than forty - five (45) days before the beginning of each fiscal year of the Association, the Association shall distribute to each Owner a final copy of the pro forma operating statement or budget for the forthcoming fiscal year. The meeting will be conducted in accordance with Chapter 5 (commencing with Section 7510) of Part 3, Division 2 of Title 1 of the Corporation Code and Section 7613 of the Corporation Code.

Now 7.4.3 Content

Requires 51% to amend per CCR 14.1

71

7.4.1.3. Unless the Association or its assessment income shall be exempt from federal or state income taxes, to the extent possible, all reserves shall be accounted for and handled as contributions to the capital of the Association and as trust funds segregated from the regular income of the Association or in such other manner authorized by law or regulations of the Internal Revenue Service and the California Franchise Tax Board as will prevent such funds from being taxed as income of the Association.

Now 7.4.3 Content

7.4.2. Special Assessments. If the Board determines that the estimated total amount of funds necessary to defray the common expenses of the Association for a given fiscal year is or will become inadequate to meet expenses for any reason. including, but not limited to, unanticipated delinquencies, costs of construction, unexpected repairs or replacements of capital improvements on the Common Area or otherwise, the Board shall determine the approximate amount necessary to defray such expenses, and if the amount is approved by a majority vote of the Board it shall become a special assessment. The Association may, in

Now 7.5.1 Content

72

the discretion of the Board, pro rate such special assessment over the remaining months of the fiscal year or levy the assessment immediately against each Lot. As used herein, the term "special assessments" shall not include charges to or obligations of an Owner or group of Owners incurred as a result of action by the Association to bring the Owner or group of Owners or their Lots into compliance with the provisions of this Declaration, the Articles, the Bylaws or the Association Rules. Unless exempt from federal or state income taxation, all proceeds from any special assessment shall be segregated and deposited into a special account and shall be used solely for the purpose or purposes for which it was levied or it shall be otherwise handled and used in a manner authorized by law or regulations of the Internal Revenue Service or the California Franchise Tax Board in order to avoid, if possible, its taxation as income of the Association.

7.4.3. Limitation Respecting Special Assessments. The foregoing notwithstanding, any special assessment which, singly or in the aggregate with previous special assessments for the fiscal year in which such special assessment is levied would amount in excess of five percent (5%) of the budgeted gross expense of the Association for that fiscal year, shall require approval by

Now 7.5.2 Content

73

vote or written consent of members holding fifty-one percent (51%) of the voting rights of all members. The voting shall be conducted in accordance with Chapter 5 (commencing with Section 7310) of Part 3, Division 2 of Title 1 of the Corporation Code and Section 7613 of the Corporation Code.

74

7.4.4 Emergency Special Assessments. Notwithstanding any other provisions contained in this section, the Board may increase assessments necessary for emergency situations. For purposes of this section, an emergency situation is any one of the following:

(a) An extraordinary expense required by an order of a court.

(b) An extraordinary expense necessary to repair or maintain subdivided property or any part of it for which the Association is responsible where a threat to personal safety on the property is discovered.

(c) An extraordinary expense necessary to repair or maintain the subdivided property or any part of it for which the Association is responsible that could not have been reasonably foreseen by the Board in preparing and distributing the pro forma operating budget. However, prior to the imposition or collection of an assessment under this section, the Board shall pass a resolution containing written findings as to the necessity of the extraordinary expense involved and why the expense was not or could not have been reasonably foreseen in the budgeting process, and the resolution shall he distributed to

Now 7.5.3 Content

75

the members with the notice of assessment

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7.5. Uniform Rate of Assessment. Regular and special assessments must be fixed at a uniform rate for all Lots and regular and special assessment must be determined by dividing the amount by the total number of Lots then subject to assessment.

7.6 Uniform Rate of Assessment. Regular and special assessments must be fixed at a uniform rate for all Lots and regular and special assessment must be determined by dividing the amount by the total number of Lots then subject to assessment.

NO CHANGE

Renumbered

VOTE: 7-0 4/11/16

7.6. Assessment Period. The regular assessment period shall commence on November 1 of each year and shall terminate on October 31 of such year, and regular assessments shall be payable annually when levied unless the Association adopts some other basis for collection, such as monthly or quarterly.

7.7 Assessment Period. The regular assessment period shall commence on November 1 the first day of each fiscal year and shall terminate on October 31 the last day of such fiscal year, and regular assessments shall be payable annually monthly when levied unless the Association adopts some other basis for collection, such as monthly or quarterly or annually.

CHANGE OF INTENT

Renumbered

Deleted reference to specific calendar months. Changed annually to monthly.

Rational: This fiscal year detail is not necessary for CC&R text. The Board should select the fiscal year according to operational needs. (Any change requires notices to the state and membership.) Changed annually to monthly to reflect actual practice.

VOTE: 7-0 4/11/167.7. Notice and Assessment Due Dates. A

single ten (10) forty-five (45) day prior written notice of each annual regular assessment and a single thirty (30) day prior written notice of each special assessment shall be given to any Owner of every Lot subject to assessment in which the due date for the payment of the assessment shall be specified. Each

Notice and Assessment Due Dates.A single forty-five (45) day prior written notice of each annual regular assessment and a single thirty (30) day prior written notice of each special assessment shall be given to any Owner of every Lot subject to assessment in which the due date for the payment of the assessment shall

CHANGE OF INTENT

Change notifications to not less than 30 nor more than 60 days prior to the increased assessment becoming due.

Rational: Update per Civil Code 5615 (Notice

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regular assessment and special assessment shall become delinquent if not paid within fifteen (15) days after its due date. There shall accrue with each delinquent assessment a late charge of Fifteen Dollars ($15.00) together with interest at the then prevailing rate fixed from time to time by the Association (but not to exceed the maximum rate permitted by law) or, if no rate has been fixed by the Association, at the rate of ten percent (10%) per annum calculated from the due date to and including the date full payment is received by the Association.

be specified.The Association shall provide individual notice pursuant to Civil Code 4040 to the Members of any increase in the regular or special assessments of the Association, not less than 30 nor more than 60 days prior to the increased assessment becoming due. This notice shall specify the due date for the payment of the assessment. Each regular assessment and special assessment shall become delinquent if not paid within fifteen (15) days after its due date. There shall accrue with each delinquent assessment a late charge of Fifteen Dollars ($15.00) $50.00 together with interest at the then prevailing rate fixed from time to time by the Association (but not to exceed the maximum rate permitted by law) or, if no rate has been fixed by the Association, at the rate of ten percent (10%) per annum calculated from the due date to and including the date full payment is received by the Association.

of Assessment Increase) and Section 7.4.2.4.

Late Fee updated for inflation

VOTE: 7-0 4/11/16

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7.8. Estoppel Certificate. The Association or manager, on not less than twenty (20) days prior written request. shall execute, acknowledge and deliver to the party making such request a statement in writing stating whether or nor to the knowledge of the Association, a particular Owner is in default as to his Lot under the provisions of this Declaration and further stating the dates to which assessments, regular or special, have been paid as to such Lot. Any such certificate may be relied on by any prospective purchaser or mortgagee of the Lot, but reliance on such certificate may not extend to any default not involving the payment of assessments of which the signer had no actual knowledge.

7.9 Estoppel Certificate. The Association or manager, on not less than twenty (20) days prior written request. shall execute, acknowledge and deliver to the party making such request a statement in writing stating whether or nor to the knowledge of the Association, a particular Owner is in default as to his Lot under the provisions of this Declaration and further stating the dates to which assessments, regular or special, have been paid as to such Lot. Any such certificate may be relied on by any prospective purchaser or mortgagee of the Lot, but reliance on such certificate may not extend to any default not involving the payment of assessments of which the signer had no actual knowledge.

NO CHANGE

VOTE: 7-0 4/11/16

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SECTION 8. COLLECTION OF ASSESSMENTS: LIENS

8.1. Right to Enforce. The right to collect and enforce assessments is vested in the Board acting for and on behalf of the Association. The Association or its authorized representative, including any manager, can enforce the obligations of the Owners to pay assessments provided for in this Declaration by commencement and maintenance of a suit at law or in equity, or the Association may foreclose by judicial proceedings or through the exercise of the power of sale pursuant to Section 8.2 to enforce the lien rights created. Suit to recover a money judgment for unpaid assessments together with all other amounts described in Section 8.2 shall be maintainable without foreclosing or waiving the lien rights.

8.1 Right to Enforce. The right to collect and enforce assessments is vested in the Board of Directors acting for and on behalf of the Association. The Association or its authorized representative, including any manager, can enforce the obligations of the Owners to pay assessments provided for in this Declaration by commencement and maintenance of a suit at law or in equity, or the Association may foreclose by judicial proceedings or through the exercise of the power of sale pursuant to Section 8.2 to enforce the lien rights created. Suit to recover a money judgment for unpaid assessments together with all other amounts described in Section 8.2 shall be maintainable without foreclosing or waiving the lien rights.

NO CHANGE

VOTE: 7-0 4/18/16

8.2. Creation of Lien. If there is a delinquency in the payment of any assessment on a Lot, as described in Section 7.7, any amounts that are delinquent, together with the late charge and interest described in that section, and all costs that are incurred by the Association or its authorized representative in the collection of the amounts, including reasonable attorney's fees, shall be a lien against that Lot upon the recordation in the office of the County Recorder of the County of a notice of assessment as provided in California Civil Code,

Creation of Lien. If there is a delinquency in the payment of any assessment on a Lot, as described in Section 7.7, any amounts that are delinquent, together with the late charge and interest described in that section, and all costs that are incurred by the Association or its authorized representative in the collection of the amounts, including reasonable attorney's fees, shall be a lien against that Lot upon the recordation in the office of the County Recorder of the County of a notice of assessment as provided in California Civil Code, Section 1367. The notice of assessment shall not be recorded unless

No change of intent.

Name of county added. (San Luis Obispo)

Correction of the Civil Code number from 1367 to 5740.

Addition of the word delinquent for clearer meaning was added.

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Section 1367. The notice of assessment shall not be recorded unless and until the Association or its authorized representative has delivered to the delinquent Owner or Owners not less than fifteen (15) days before the recordation of the notice of assessment, a written notice of default and a demand for payment, and unless the delinquency has not been cured within said fifteen (15) day period.

and until the Association or its authorized representative has delivered to the delinquent Owner or Owners not less than fifteen (15) days before the recordation in the office of the County Recorder of San Luis Obispo County of a notice of assessment as provided in California Civil Code, Section 5740 (1367). The notice of delinquent assessment shall not be recorded unless and until the Association or its authorized representative has delivered to the delinquent Owner or Owners not less than fifteen (15) days before the recordation of the notice of diliquent assessment, a written notice of default and a demand for payment, and unless the delinquency has not been cured within said fifteen (15) day period.

VOTE: 7-0 4/185/16

8.3. Notice of Default: Foreclosure. Not more than one (1) nor less than fifteen (15) days after the recordation of the notice of assessment, the Association or its authorized representative can record a notice of default and can cause the Lot with respect to which a notice of default has been recorded to be sold in the same manner as a sale is conducted under California Civil Code, Sections 2924, et. seq., or through judicial foreclosure. However, as a condition precedent to the holding of any such sale, appropriate publication shall be made. In connection with any such sale, the Association is authorized to appoint its attorney, any officer or director, or any title insurance company authorized to

Notice of Default: Foreclosure. Not more than one (1) nor less than fifteen (15) days after the recordation of the notice of assessment, the Association or its authorized representative can record a notice of default and can cause the Lot with respect to which a notice of default has been recorded to be sold in the same manner as a sale is conducted under California Civil Code, Sections 2924, 2924b,2924c., or through judicial foreclosure. However, as a condition precedent to the holding of any such sale, appropriate publication shall be made. In connection with any such sale, the Association is authorized to appoint its attorney, any officer or director, or any title insurance company authorized to do business in California as trustee for

No change of intent.

Added all section numbers of the Civil Code section.

Added our county name for clarity.

81

do business in California as trustee for purposes of conducting the sale. If a delinquency is cured before sale, or before completing a judicial foreclosure, the Association or its authorized representative shall cause to be recorded in the office of the County Recorder of the County a certificate setting forth the satisfaction of such claim and release of such lien upon payment of actual expenses incurred, including reasonable attorneys' fees.

purposes of conducting the sale. If a delinquency is cured before sale, or before completing a judicial foreclosure, the Association or its authorized representative shall cause to be recorded in the office of the County Recorder of San Luis Obispo County a certificate setting forth the satisfaction of such claim and release of such lien upon payment of actual expenses incurred, including reasonable attorneys' fees.

VOTE: 7-0 4/18/16

8.4. Waiver of Exemptions. Each Owner, to the extent permitted by law, waives to the extent of any liens created pursuant to this Section 8, the benefit of any homestead or exemption laws of California in effect at the time any assessment, or installment, becomes delinquent or any lien is imposed.

8.4 Waiver of Exemptions. Each Owner, to the extent permitted by law, waives to the extent of any liens created pursuant to this Section 8, the benefit of any homestead or exemption laws of California in effect at the time any assessment, or installment, becomes delinquent or any lien is imposed.

No Change

VOTE: 7-0 4/18/16

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SECTION 9. INSURANCE

9.1. Liabilities Insurance. The Association shall obtain and maintain comprehensive public liability insurance insuring the Association, any manager, and the Owners and occupants of Lots, and their respective family members, guests, invitees, and the agents and employees of each, against any liability incident to the ownership or use of the Common Area, or any other Association maintained real property including, if obtainable, a cross-liability or severability of interest endorsement insuring each insured against Liability to each other insured. The limits of such insurance shall not be less than One Million Dollars ($1,000,000.00) covering all claims for death, personal injury and property damage arising out of a single occurrence. Such insurance shall include coverage against water damage liability, liability for non-owned and hired automobiles, liability for property of others and any other liability or risk customarily covered with respect to projects similar in construction, location, and use.

9.1 Liabilities Liability Insurance. The Association shall obtain and maintain comprehensive public liability insurance insuring the Association, any manager, and the Owners and occupants of Lots, and their respective family members, guests, invitees, and the agents and employees of each, against any liability incident to the ownership or use of the Common Area, or any other Association maintained real property including, ,in the name of the Association insuring against any liability incident to the ownership or use of the Association property and the performance by the Association of its duties under this Declaration. Such policy shall include, if obtainable, a cross-liability or severability of interest endorsement insuring each insured against liability of to each other insured. The limits of such insurance shall not be not less thanOne Million Dollars ($1,000,000.00) Two Million Dollars ($2,000,000) and that required by successor statutes or laws to limit the liability of the Association, covering all claims for deaths, personal injury and property damage arising out of a single occurrence. Such insurance shall include coverage against water damage liability, liability for non-owned and hired automobiles, liability for property of others and any other liability or risk customarily covered with respect to projects similar in construction, location, and use.

Change of Intent.

NOTE: Most of this Section 9 has been updated to reflect much of the language in the Cypress Ridge CC&Rs to ensure that the Association maintains adequate insurance to meet the various Civil Codes and to protect its Members. For the most part, the Bayview Estates insurance policy already meets these requirements (one delta is addressed herein).

Rational:This section updated to meet the requirement of Civil Code 5805 (Limitation of Member Liability) for at least $2,000,000 general liability coverage. Bayview Estates currently meets this requirement with a $1,000,000 general liability policy coupled with a $5,000,000 umbrella policy.

83

VOTE: 7-0 4/4/16

9.2 Directors and Officers Insurance. The Association shall maintain Director and Officer insurance in an amount that satisfies or exceeds the requirements of Civil Code Section 5800 and any successor statutes or laws to limit the liability of directors and officers of the Association.

New Section

Rational: This section added to provide specific controls for Director and Officer insurance per Civil Code 5800 (Limitation of Officer and Director Liability).

VOTE: 7-0 4/4/16

9.2. Hazard Insurance. The Association also shall obtain and maintain such hazard insurance covering Common Area improvements as may be determined by the Board or as may be required from time to time by any institutional first mortgagee.

9.3 Hazard Property Insurance. The Association also shall obtain and maintain such hazard insurance covering property insurance against physical loss or damage by fire or other risks to Common Area improvements as may be determined by the Board or as may be required from time to time by any institutional first mortgagee. with coverage set at the maximum insurable replacement cost of such property as determined annually by an insurance carrier selected by the Association. Insurance proceeds shall be payable to the Association. Except as provided in Section 4.20 (Indemnification) of this Declaration, all rights of subrogation between the Association and the Owners, members of their families, their contract purchasers, tenants, guests, invitees, and First Mortgagees are waived. All insurance policies obtained by the Association shall

Change of Intent.

Rational: This section updated to reflect the Cypress Ridge CC&Rs and the direction of Davis-Stirling.com to maintain insurance that equals the actual replacement cost of all Common Area improvements.

84

include a waiver of all subrogation rights against the Owners, members of their families, their contract purchasers, tenants, guests, invitees, and First Mortgagees; provided however, that any failure or inability to obtain such a waiver shall not defeat or impair the foregoing waiver between the Association and the Owners, members of their families, their contract purchasers, tenants, guests, invitees, and First Mortgagees set forth herein.

VOTE: 7-0 4/4/16

9.3. Owner's Liability and Property Insurance. An Owner may carry whatever personal injury and property damage liability insurance with respect to his Lot that he desires, as well as any property casualty insurance. However, any such policy shall include a waiver of subrogation clause acceptable to the Association and to any institutional first mortgagee.

9.4 Owner ’s Liability and Property Insurance. An Owner may carry whatever personal injury and property damage liability insurance with respect to his Lot that he desires, as well as any property casualty insurance. Each Owner shall maintain property insurance against losses to real and personal property located within the Lot covering the full replacement cost thereof, including the Residence and to any upgrades or Improvements located with the Lot and liability insurance against any liability resulting from any injury or damage occurring within the Lot. The Association’s insurance policies will not provide coverage against any of the foregoing or any other loss associated with the Lots, and the Association shall not have any obligation to monitor Insurance carried by Owners. However, any such policy shall include a waiver of subrogation clause acceptable to the Association and to any institutional first mortgagee. Except as provided by Section 4.20 (Indemnification) of this Declaration, all rights of subrogation between the Owners and the Association

CHANGE OF INTENT

Rational: This section updated to reflect the Cypress Ridge CC&Rs and the recommendation of Davis-Stirling.com to require Members to carry insurance. As suggested by Davis-Stirling.com, the Association has no responsibility for monitoring Owner insurance.

VOTE: 7-0 4/4/16

85

are waived. Any insurance maintained by an Owner must contain a waiver of subrogation rights by the insurer as to the Association; provided, however, that an Owner’s inability or failure to obtain such a waiver shall not defeat or impair the waiver of subrogation as between such parties contained herein.

9.5 Fidelity Bond. The Association shall maintain a fidelity bond in an amount that is at least the sum of the reserve funds plus three (3) months aggregate of the regular assessments. The fidelity bond shall name the Association as obligee and insure against loss by reason of acts of the Board of Directors , officers and employees of the Association, and any management agent and its employees, whether or not such persons are compensated for their services.

New Section

Rational: This section added to reflect the Cypress Ridge CC&Rs and the recommendations of Davis-Stirling.com.

Bayview Estates currently does not meet this requirement as its Fidelity Bond is currently only $200,000, while it should be approximately $280,000.

9.6 Worker’s Compensation Insurance. The Association shall maintain worker’s compensation insurance to the extent necessary to comply with all applicable laws of the State of California or the regulations of any governmental body or authority having jurisdiction over the Development.

New Section

Rational: This section added to reflect the Cypress Ridge CC&Rs and the recommendations of Davis-Stirling.com.

VOTE: 7-0 4/4/169.7 Other Insurance. The Association shall

maintain other types of insurance as the New Section

86

Board of Directors determines necessary to fully protect the interests of the Owners. Rational:

This section added to reflect the Cypress Ridge CC&Rs and the recommendations of Davis-Stirling.com.

VOTE: 7-0 4/4/169.8

9.8.1

9.8.2

9.8.3

Notifications and Inspections.

The Association shall annually distribute not less than 30 days nor more than 90 days preceding the beginning of the association's fiscal year a summary of the association's insurance policies that includes all of the following information about each policy: (a) name of the insurer, (b) type of insurance, (c) policy limits, and (d) amount of deductible, if any.

The Association shall notify, as soon as reasonably practicable, its members by first-class mail if any of the policies have lapsed, been canceled, and are not immediately renewed, restored, or replaced, or if there is a significant change, such as a reduction in coverage or limits or an increase in the deductible, as to any of those policies. If the Association receives any notice of nonrenewal of a policy and if replacement coverage will not be in effect by the date the existing coverage lapses, the Association shall immediately notify its members.

Copies of all such insurance policies shall

New Section

Rational: This section added to reflect the Cypress Ridge CC&Rs.

VOTE: 7-0 4/4/16

87

be retained by the Association and open for inspection by Owners at reasonable times.

9.9 Review of Insurance. The Board of Directors shall review the adequacy of all insurance at least once every year. The review shall include a replacement cost appraisal of all insurable Association property improvements without respect to depreciation. The Board of Directors shall adjust and modify the policies to provide coverage and protection that is customarily carried by and reasonably available to prudent owners of similar property in the area in which the Development is situated.

New Section

Rational:This section added to reflect the Cypress Ridge CC&Rs, the recommendations of Davis-Stirling.com, and the following civil codes: 5200 -

Association Records

5300 - Insurance Disclosure

5810 - Notice of Change in Insurance Coverage

VOTE: 7-0 4/4/169.4. Adjustment of Losses. The Association

is appointed attorney-in-fact by each Owner to negotiate and agree on the value and extent of any loss under any policy carried pursuant to Section 9.1 or 9.2. The Association is granted full

9 .10 Adjustment of Losses. The Association is appointed attorney-in-fact by each Owner to negotiate and agree on the value and extent of any loss under any policy carried pursuant to Section 9.1 or 9.2. The Association is granted full right and

No Change

88

right and authority to compromise and settle any claim or enforce any claim by legal action or otherwise and to execute releases in favor of any insurer.

authority to compromise and settle any claim or enforce any claim by legal action or otherwise and to execute releases in favor of any insurer. VOTE: 7-0 4/4/16

9.5. Distribution to Mortgagees. Subject to the provision of Section 13.4, any mortgagee has the option to apply insurance proceeds payable to the Association in reduction of the obligation secured by the mortgage of such mortgagee.

9.11 Distribution to Mortgagees. Subject to the provision of Section 13.4, any mortgagee has the option to apply insurance proceeds payable to the Association in reduction of the obligation secured by the mortgage of such mortgagee.

No change

VOTE: 7-0 4/4/16

89

SECTION 10. DESTRUCTION OF COMMON AREA IMPROVEMENTS

If there is a total or partial destruction of any of the improvements in the Common Area, the Association shall cause such improvements to be repaired or replaced to their original condition as installed or constructed or as may then be required reasonably by the Local Agencies. To the extent that the cost of such repair or replacement exceeds available insurance proceeds or reserves of the Association, each Owner shall be obligated to contribute equally to the cost of such repair or replacement.

If there is a total or partial destruction of any of the improvements in the Common Area, the Association shall cause such improvements to berepaired or replaced to their original condition as installed or constructed restored (i.e., repaired, rebuilt, or reconstructed) to substantially the same condition and appearance in which it existed prior to fire or other casualty damage, or as may then be required reasonably by the Local Agencies. To the extent that the cost of such repair or replacement restoration exceeds available insurance proceeds or reserves of the Association, each Owner shall be obligated to contribute equally to the cost of such repair or replacement restoration.

No change of intent.

Description: Incorporate language from Cypress Ridge CC&Rs as follows: Change from “repaired or replaced to their original condition as installed or constructed” to “restored (i.e., repaired, rebuilt, or reconstructed) to substantially the same condition and appearance in which it existed prior to fire or other casualty damage.”

VOTE: 7-0 2/8/16

90

SECTION 11. CONDEMNATION

11.1. Sale by Consent. If an action for condemnation of all or a portion of the Common Area is proposed or threatened by any governmental agency having the right of eminent domain, then, after approval by vote or written consent of at least fifty-one percent (51%) of all of the Owners and with the prior written consent of sixty-seven percent (67%) of all institutional first mortgagees, the Common Area, or a portion of it may be sold and conveyed to the condemning authority by the Association or its designees acting as the attorney-in-fact of all Owners under an irrevocable power of attorney, which each Owner by accepting a deed to a Lot in the Project hereby grants and which shall be coupled with the interest of all other Owners, for a price deemed fair and equitable by the Board.

11.1 Sale by Consent. If an action for condemnation of all or a portion of the Common Area is proposed or threatened by any governmental agency having the right of eminent domain, then, after approval by vote or written consent in excess of greater rthan fifty-one percent (51% 50% ) of all of the Owners and with the prior written consent of greater than sixty-seven (67%) of all institutional first mortgagees, the Common Area, or a portion of it may be sold and conveyed to the condemning authority by the Association or its designees acting as the attorney-in-fact of all Owners under an irrevocable power of attorney, which each Owner by accepting a deed to a Lot in the Project hereby grants and which shall be coupled with the interest of all other Owners, for a price deemed fair and equitable by the Board of Directors.

CHANGE OF INTENT

51% equates to 52.98% of 51 lots, more than a simple majority

Requires 51% to amend per CCR 14.1

VOTE: 7-0 4/4/16VOTE: 7-0 4/18/16

11.2. Distribution of Proceeds of Sale. On a sale occurring under Section 11.1, the proceeds shall be distributed equally to each Owner and their mortgagees as their respective interests may appear.

11.2 Distribution of Proceeds of Sale. On a sale occurring under Section 11.1, the proceeds shall be distributed equally to each Owner

NO CHANGE

VOTE: 7-0 4/18/16

11.3. Distribution of Condemnation Award. If the Common Area, or a portion of it, is not sold but is instead taken, the award shall be apportioned among the Owners and their respective mortgagees by the terms of the judgment of condemnation, and if not so apportioned, then the award

11.3 Distribution of Condemnation Award. If the Common Area, or a portion of it, is not sold but is instead taken, the award shall be apportioned among the Owners and their respective mortgagees by the terms of the judgment of condemnation, and if not so

NO CHANGE

91

shall be distributed equally to each Owner and their mortgagee as their respective interests may appear.

apportioned, then the award shall be distributed equally to each of the Owners and their mortgagees as their respective interests may appear.

VOTE: 7-0 4/18/16

SECTION 12. TERM OF DECLARATION This Declaration shall continue in full force and effect until revoked pursuant to Section 14.

SECTION 13. PROTECTION OF MORTGAGEES

13.1. Mortgage Permitted. Any Owner may encumber his Lot with a mortgage.

13.1 Mortgage Permitted. Any Owner may encumber his Lot with a mortgage.

NO CHANGE

Vote: 7-0 2/8/16

13.2. Subordination. Any lien created or claimed under the provisions of this Declaration is expressly made subject and subordinate to the rights of any first mortgage that encumbers all or a portion of the Property, or any Lot, made in good faith and for value, and no such lien shall in any way defeat, invalidate, or impair the obligation or priority of such mortgage unless the mortgagee expressly subordinates his interest, in writing, to such lien.

13.2 Subordination. Any lien created or claimed under the provisions of this Declaration is expressly made subject and subordinate to the rights of any first mortgage that encumbers all or a portion of the Property, or any Lot, made in good faith and for value, and no such lien shall in any way defeat, invalidate, or impair the obligation or priority of such mortgage unless the mortgagee expressly subordinates his interest, in writing, to such lien.

NO CHANGE

VOTE: 7-0 2/8/16

13.3. Amendment.

13.3.1. In addition to the requirements of Section 14 and unless a greater percentage is expressly required by this Declaration, the Articles, the Bylaws or by law the prior written consent (or deemed consent as provided in Section 13.3.3) of first mortgagees of Lots which have at least fifty-one percent (51%) of the votes of all Lots encumbered by first mortgages shall be required to add or amend any material provisions of the Declaration, the Articles, the Bylaws or the Tract Map, which establish, provide for, govern or regulate any of

13.3. Amendment.

13.3.1. In addition to the requirements of Section 14 and unless a greater percentage is expressly required by this Declaration, the Articles, the Bylaws or by law the prior written consent (or deemed consent as provided in Section 13.3.3) of first mortgagees of Lots which have at least fifty-one percent (51%) of the votes of all Lots encumbered by first mortgages shall be required to add or amend any material provisions of the Declaration, the Articles, the Bylaws or the Tract Map,

NO CHANGE

VOTE: 7-0 2/8/16

92

the follows: which establish, provide for, govern or regulate any of the follows:

93

13.3.1.1. Voting; 13.3.1.1. Voting; NO CHANGE

VOTE: 7-0 3/14/1613.3.1.2. Assessments, collection of

assessments, assessment liens or subordination of such liens;

13.3.1.2. Assessments, collection of assessments, assessment liens or subordination of such liens;

NO CHANGE

VOTE: 7-0 3/14/1613.3.1.3. Insurance or fidelity bonds; 13.3.1.3. Insurance or fidelity bonds; NO CHANGE

.

VOTE: 7-0 3/14/1613.3.1.4. Rights to use the Common Area; 13.3.1.4. Rights to use the Common Area; NO CHANGE

.

VOTE: 7-0 3/14/1613.3.1.5. Responsibility and reserves for

maintenance and repair of Lots and Common Area and the improvements thereon;

13.3.1.5. Responsibility and reserves for maintenance and repair of Lots and Common Area and the improvements thereon;

NO CHANGE

VOTE: 7-0 3/14/16

13.3.1.6. Expansion or contraction of the Project or the addition, annexation or withdrawal of real property to or from the Project;

13.3.1.6. Expansion or contraction of the Project or the addition, annexation or withdrawal of real property to or from the Project;

NO CHANGE

VOTE: 7-0 3/14/1613.3.1.7. Boundaries of any Lot; 13.3.1.7. Boundaries of any Lot; NO CHANGE

VOTE: 7-0 3/14/1613.3.1.8. The interests or rights

of the Association or Owners in and to the Common Area;

13.3.1.8. The interests or rights of the Association or Owners in and to the Common Area;

NO CHANGE

VOTE: 7-0 3/14/16

13.3.1.9. The convertibility of Lots into Common Area

13.3.1.9. The convertibility of

NO CHANGE

94

or of Common Area into Lots;

Lots into Common Area or of Common Area into Lots;

VOTE: 7-0 3/14/16

13.3.1.10. The leasing of Lots; 13.3.1.10. The leasing of Lots;

NO CHANGE.

VOTE: 7-0 3/14/1613.3.1.11. Imposition of any right

of first refusal or similar restriction on the right of an Owner to sell, transfer or otherwise convey his or her Lot; or 13.3.12. Any provisions which are for the express benefit of first mortgagees or insurers or governmental guarantors.

13.3.1.11. Imposition of any right of first refusal or similar restriction on the right of an Owner to sell, transfer or otherwise convey his or her Lot; or 13.3.12. Any provisions which are for the express benefit of first mortgagees or insurers or governmental guarantors.

NO CHANGE

VOTE: 7-0 3/14/16

13.3.12. Any provisions which are for the express benefit of first mortgagees or insurers or governmental guarantors.

13.3.12. Any provisions which are for the express benefit of first mortgagees or insurers or governmental guarantors.

NO CHANGE

VOTE: 7-0 3/14/16

13.3.2. For purposes of Section 13.3.1, an addition or amendment shall not be considered material if it is for the purpose of correcting technical errors, or for clarification only.

13.3.2. For purposes of Section 13.3.1, an addition or amendment shall not be considered material if it is for the purpose of correcting

NO CHANGE

95

technical errors, or for clarification only.

VOTE: 7-0 3/14/16

13.3.3. Any first mortgagee who receives a written request to consent to additions or amendments requiring consent under this Section 13.3 who does not deliver or post to the requesting party a negative response within thirty (30) days after such receipt shall be deemed to have consented to such request.

13.3.3. Any first mortgagee who receives a written request to consent to additions or amendments requiring consent under this Section 13.3 who does not deliver or post to the requesting party a negative response within thirty (30) days after such receipt shall be deemed to have consented to such request.

NO CHANGE

VOTE: 7-0 3/14/16

13.4. Restrictions on Certain Changes. Unless at least sixty-seven percent (67%) of

first mortgagees of Lots have given their prior written approval, neither the Association nor the Owners shall be entitled:

Restrictions on Certain Changes. Unless at least greater than sixty-seven percent (67% of first mortgagees of Lots have given their prior written approval, neither the Association nor the Owners shall be entitled:

NO CHANGE

Requires 67% to amend per CCR 14.1

VOTE: 7-0 4/4/16

13.4.1. by act or omission to seek to abandon, partition, subdivide, encumber, sell or transfer the Common Area. However. the granting of easements

13.4.1.

by act or omission to seek to abandon,partition, subdivide, encumber, sell or transfer the Common Area. However., the granting of easements for public utilities or for other public purposes consistent with the intended use of the Common Area by the Association shall

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

96

for public utilities or for other public purposes consistent with the intended use of the Common Area by the Association shall not be deemed a transfer within the meaning of this clause.

not be deemed a transfer within the meaning of this clause;

Vote: 7-0 3/14/1613.4.2. to change the method of

determining the obligations, assessments, dues or other charges which may be levied against an Owner,

13.4.2

to change the method of determining the obligations, assessments, dues or other charges which may be levied against an Owner;

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

VOTE: 7-0 3/14/1613.4.3. by act or omission to change,

waive or abandon the provisions of this Declaration, or the enforcement thereof, pertaining to architectural design or control or the exterior appearance of Lot structures, the maintenance of the Common Area walks or common fences and driveways, or the upkeep of lawns and plantings within the Property;

13.4.3

by act or omission to change, waive or abandon the provisions of this Declaration, or the enforcement thereof, pertaining to architectural design or control or of the exterior appearance of Lot structures, the maintenance of the Common Area walks or common fences and driveways, or the upkeep of lawns and plantings within the Property;

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

VOTE: 7-0 3/14/16

13.4.4. to fail to maintain fire and extended coverage insurance on insurable Association property, including any Common Area improvements, on a current replacement cost basis in an amount not less than one hundred percent (100%) of the insurable value (based on current replacement cost);

13.4.4 to fail to maintain fire and extended coverage insurance on insurable Association property, including any Common Area improvements, on a current replacement cost basis in an amount not less than one hundred percent (100%) of the insurable value (based on current replacement cost);

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

VOTE: 7-0 3/14/16

97

or13.4.5. to use hazard insurance proceeds

for losses to any Association property. including Common Area improvements. for other than the repair, replacement or reconstruction of such property.

13.4.5

to use hazard insurance proceeds for losses to any Association property., including Common Area improvements., for other than the repair, replacement or reconstruction restoration of such property. (i.e., repaired, rebuilt, or reconstructed to substantially the same condition and appearance in which it existed prior to the damage of such property.)

NO CHANGE OF INTENT

Edited for Clarity

VOTE: 7-0 3/14/16

13.5. Right to Examine Books and Records. Institutional first mortgagees shall have the right to examine the books and records of the Association and the right to require the submission of financial data concerning the Association, including annual audit reports and operating statements as furnished to the Owners.

13.5 Right to Examine Books and Records. Institutional first mortgagees shall have the right to examine the books and records of the Association and the right to require the submission of financial data concerning the Association, including annual audit reports and operating statements as furnished to the Owners.

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

VOTE: 7-0 3/14/16

13.6. Payments by Mortgagees. Mortgagees of Lots may, jointly or singularly, pay taxes or other charges which are in default and which may or have become a charge against the Common Area and may pay overdue premiums on hazard insurance policies, or secure new hazard insurance coverage on the lapse of a policy, covering any Common Area improvements or other property insured by the Association, and upon making any such payments, such mortgagees shall be owed immediate reimbursement therefor from the Association. This provision shall constitute an agreement by the

13.6 Payments by Mortgagees. Mortgagees of Lots may, jointly or singularly, pay taxes or other charges which are in default and which may or have become a charge against the Common Area and may pay overdue premiums on hazard insurance policies, or secure new hazard insurance coverage on the lapse of a policy, covering any Common Area improvements or other property insured by the Association, and, upon making any such payments, such mortgagees shall be owed immediate reimbursement therefor from the Association. This provision shall constitute an agreement by the Association for the express benefit of all

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

98

Association for the express benefit of all mortgagees and upon request of any mortgagee the Association shall execute and deliver to such mortgagee a separate written agreement embodying the provisions of this Section.

mortgagees, and upon request of any mortgagee, the Association shall execute and deliver to such mortgagee a separate written agreement embodying the provisions of this Section.

VOTE: 7-0 3/14/16

13.7. Distribution of insurance and Condemnation Proceeds. No Owner, or any other party, shall have priority over any right of first mortgagees of Lots pursuant to their mortgages in the case of a distribution to Owners of insurance proceeds or condemnation awards for losses to or a taking of Common Area. Any provision to the contrary in this Declaration or in the Articles, the Bylaws or other documents relating to the development is to such extent void. All applicable fire and all physical loss or extended coverage insurance policies shall contain loss payable clauses acceptable to the affected mortgagees naming the mortgagees, as their interests may appear.

13.7 Distribution of insurance and Condemnation Proceeds. No Owner, or any other party, shall have priority over any right of first mortgagees of Lots pursuant to their mortgages in the case of a distribution to Owners of insurance proceeds or condemnation awards for losses to or a taking of Common Area. Any provision to the contrary in this Declaration or in the Articles, the Bylaws or other documents relating to the development is, to such extent, void. All applicable fire and all physical loss or extended coverage insurance policies shall contain loss payable clauses acceptable to the affected mortgagees naming the mortgagees, as their interests may appear.

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

VOTE: 7-0 3/14/16

13.8. Amenities. All Common Area shall be available for use by owners and shall at all times be owned in fee by the Association free of encumbrances except for any easements granted for public utilities or for other public purposes consistent with the intended use of such property by the Association.

13.8 Amenities. All Common Area shall be available for use by owners and shall, at all times, be owned in fee by the Association free of encumbrances except for any easements granted for public utilities or for other public purposes consistent with the intended use of such property by the Association.

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

VOTE: 7-0 3/14/1613.9. Notices to Mortgagees of Record. If any

Owner is in default under any provision of this Declaration or under any provision of the Articles, the Bylaws or

13.9 Notices to Mortgagees of Record. If any Owner is in default under any provision of this Declaration or under any provision of the Articles, the Bylaws or the Association

NO CHANGE OF INTENT

Edited for grammar,spelling, typo,

99

the Association Rules, which default is not cured within thirty (30) days after written notice to that Owner, the Association shall give to each mortgagee of record of that Owner's Lot written notice of his default and of the fact that said thirty (30) day period has expired, if so requested.

Rules, which default is not cured within thirty (30) days after written notice to that Owner, the Association shall give to each mortgagee of record of that Owner's Lot written notice of his default and of the fact that said thirty (30) day period has expired, if so requested.

punctuation &/or consistency.

Correct in Recorded Docs

VOTE: 7-0 3/14/16

13.10. Effect of Breach. No breach of any of these covenants shall invalidate the lien of any mortgage in good faith and for value, but all of the covenants shall be binding upon any Owner whose title is derived through foreclosure sale, trustee's sale, or otherwise.

13.10

Effect of Breach. No breach of any of these covenants shall invalidate the lien of any mortgage in good faith and for value, but all of the covenants shall be binding upon any Owner whose title is derived through foreclosure sale, trustee's sale, or otherwise.

NO CHANGE

VOTE: 7-0 3/14/1613.11. Foreclosure. If any Lot is encumbered

by a first mortgage made in good faith and for value, the foreclosure of any lien created by any provision set forth in this Declaration for assessment, or installments of assessment, shall not operate to affect or impair the lien of the mortgage. On foreclosure of the mortgage, the lien for assessments, or installments, that has accrued up to the time of foreclosure shall be extinguished, with the foreclosure-purchaser taking title to the Lot free of the lien for assessments, or installments that has accrued up to the time of the foreclosure sale. On taking the title to the Lot the foreclosure-purchaser shall only be obligated to pay assessments or other charges levied or assessed by the Association after the foreclosure-purchaser acquired title to the Lot.

13.11

Foreclosure. If any Lot is encumbered by a first mortgage made in good faith and for value, the foreclosure of any lien created by any provision set forth in this Declaration for assessment, or installments of assessment, shall not operate to affect or impair the lien of the mortgage. On foreclosure of the mortgage, the lien for assessments, or installments, that has accrued up to the time of foreclosure shall be extinguished,with the foreclosure-purchaser taking title to the Lot free of the lien for assessments, or installments that has accrued up to the time of the foreclosure sale. On taking the title to the Lot, the foreclosure-purchaser shall only be obligated to pay assessments or other charges levied or assessed by the Association after the foreclosure-purchaser acquired title to the Lot. The subsequently levied assessments or other

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

100

The subsequently levied assessments or other charges may include previously unpaid assessments provided all Owners, including the foreclosure-purchaser, and his successors and assigns are required to pay their proportionate share as provided in this Section.

charges may include previously unpaid assessments provided all Owners, including the foreclosure-purchaser, and his successors and assigns, are required to pay their proportionate share as provided in this Section.

VOTE: 7-0 3/14/16

13.12. Non-Curable Breach. Any mortgagee who acquires title to a Lot by foreclosure or by deed in lieu of foreclosure or assignment-in-lieu of foreclosure shall not be obligated to cure any breach of this Declaration that is non-curable or of a type that is not practical or feasible to cure.

13.12

Non-Curable Breach. Any mortgagee who acquires title to a Lot by foreclosure or by deed in lieu of foreclosure or assignment-in-lieu of foreclosure shall not be obligated to cure any breach of this Declaration that is non-curable or of a type that is not practical or feasible to cure.

NO CHANGE

VOTE: 7-0 3/14/16

13.13. Loan to Facilitate. Any first mortgage given to secure a loan to facilitate the resale of a Lot after acquisition by foreclosure or by a deed-in-lieu of foreclosure or by assignment-in-lieu of foreclosure shall be deemed to be a loan made in good faith and for value and entitled to all of the rights and protections of Section 13.

13.13

Loan to Facilitate. Any first mortgage given to secure a loan to facilitate the resale of a Lot after acquisition by foreclosure, or by a deed-in-lieu of foreclosure, or by assignment-in-lieu of foreclosure shall be deemed to be a loan made in good faith and for value and entitled to all of the rights and protections of Section 13.

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

VOTE: 7-0 3/14/16

13.14. Appearance at Meetings. Because of its financial interest in the development, any mortgagee may appear at meetings (but cannot VOTE) of the members and the Board to draw attention to violations of this Declaration which have not been corrected or made the subject of remedial proceedings or assessments.

13.14

Appearance at Meetings. Because of its financial interest in the development, any mortgagee may appear (but shall not vote) at meetings (but cannot vote) of the members and the Board of Directors to draw attention to violations of this Declaration which have not been corrected or made the subject of remedial proceedings or assessments.

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

VOTE: 7-0 3/14/16

13.15. Right to Furnish Information. Any mortgagee shall have the right to furnish information to the Board

13.15

Right to Furnish Information. Any mortgagee shall have the right to furnish information to the Board of Directors

NO CHANGE

VOTE: 7-0 3/14/16101

concerning the status of any mortgage.

concerning the status of any mortgage.

13.16. Inapplicability of Right of First Refusal to Mortgagee. No right of first refusal or similar restriction on the right of an Owner to sell, transfer or otherwise convey the Owner's Lot shall be granted to the Association without the consent of any mortgagee of the Lot. Any right of first refusal or option to purchase a Lot that may be granted to the Association (or other person, firm or entity) shall not apply to any conveyance or transfer of title to such Lot, whether voluntary or involuntary, to a mortgagee which acquires title to or ownership of the Lot pursuant to the remedies provided in the mortgage or by reason of foreclosure of the mortgage or deed or assignment in lieu of foreclosure.

13.16

Inapplicability of Right of First Refusal to Mortgagee. No right of first refusal or similar restriction on the right of an Owner to sell, transfer or otherwise convey the Owner's Lot shall be granted to the Association without the consent of any mortgagee of the Lot. Any right of first refusal or option to purchase a Lot that may be granted to the Association (or other person, firm or entity) shall not apply to any conveyance or transfer of title to such Lot, whether voluntary or involuntary, to a mortgagee which acquires title to or ownership of the Lot pursuant to the remedies provided in the mortgage or by reason of foreclosure of the mortgage or deed or assignment-in-lieu of foreclosure

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

VOTE: 7-0 3/14/16

13.17. Contracts with Association and Manager. Any agreement between the Association and a manager for professional management shall provide for termination by either party without cause or payment of a termination fee on thirty (30) days written notice and shall have a maximum contract term of one (1) year; provided that the Board can renew any such contract on a year-to-year basis. If the Property is professionally maintained or managed, the Board shall not terminate professional management and assume self-management without

13.17

Contracts with Association and Manager. Any agreement between the Association and a manager for professional management shall provide for termination by either party without cause or payment of a termination fee on thirty (30) days written notice and shall have a maximum contract term of one (1) year; provided that the Board of Directors can renew any such contract on a year-to-year basis. If the Property is professionally maintained or managed, the Board of Directors shall not terminate professional management and assume self-management without the consent of greater than sixty-seven (67%) of the

CHANGE OF INTENT

67% required to amend per 14.1

51% required to amend per 14.1

102

the consent of sixty-seven percent (67%) of the voting rights of all members, and of fifty-one percent (51%) of first mortgagees.

voting rights of all members and of fifty-one percent (51%) of first mortgagees. VOTE: 7-0 4/4/16

13.18. Conflicts. In the event of any conflict between any of the provisions of this Section 13 and any other provisions of this Declaration, the provisions of this Section 13 shall control.

13.18

Conflicts. In the event of any conflict between any of the provisions of this Section 13 and any other provisions of this Declaration, the provisions of this Section 13 shall control.

NO CHANGE

VOTE: 7-0 3/14/16

103

SECTION 14. AMENDMENT OR REVOCATION

14.1. Procedure. This Declaration may be amended in any respect or revoked by the vote or written consent of holders of not less than two thirds (66 2/3%) of all the voting rights. However, if any provision of this Declaration requires a greater or lesser percentage of the voting rights of the members in order to take affirmative or negative action under such provision, the same percentage of such members shall be required to amend or revoke such provision. Also, if the consent or approval of any governmental authority, mortgagee or other person, firm, agency or entity is required under this Declaration with respect to any amendment or revocation of any provision of this Declaration, no such amendment or revocation shall become effective unless such consent or approval is obtained. Any amendment or revocation shall be evidenced by an instrument certified by the Secretary or other duly authorized officer of the Association and shall make appropriate reference to this Declaration and its amendments and shall be acknowledged and recorded in the office of the County Recorder of the County.

14.1 Procedure. This Declaration may be amended in any respect or revoked by the vote or written consent of holders of not less than two thirds (66 2/3%) of all the voting rights. However, if any provision of this Declaration requires a greater or lesser percentage of the voting rights of the members in order to take affirmative or negative action under such provision, the same percentage of such members shall be required to amend or revoke such provision. Also, if the consent or approval of any governmental authority, mortgagee or other person, firm, agency or entity is required under this Declaration with respect to any amendment or revocation of any provision of this Declaration, no such amendment or revocation shall become effective unless such consent or approval is obtained. Any amendment or revocation shall be evidenced by an instrument certified by the Secretary or other duly authorized officer of the Association and shall make appropriate reference to this Declaration and its amendments and shall be acknowledged and recorded in the office of the San Luis Obispo County Recorder of the County.

NO CHANGE OF INTENT

Edited for grammar,spelling, typo, punctuation &/or consistency.

VOTE: 7-0 6/6/16

14.2. Conflict with Section 13 or Other Provisions of this Declaration. To the extent any

14.2 Conflict with Section 13 or Other Provisions of this Declaration. To the extent any provisions of this Section 14 conflict with

NO CHANGE

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provisions of this Section 14 conflict with provisions of Section 13 or any other provision of this Declaration, except those contained in Section 14.3, the provisions of Section 13 or other provisions shall control.

provisions of Section 13 or any other provision of this Declaration, except those contained in Section 14.3, the provisions of Section 13 or other provisions shall control.

14.3. Business and Professions Code Section 11018.7. All amendments or revocations of this Declaration shall comply with the provisions of California Business and Professions Code, Section 11018.7 to the extent said Section is applicable.

Business and Professions Code Section 11018.7. All amendments or revocations of this Declaration shall comply with the provisions of California Business and Professions Code, Section 11018.7 to the extent said Section is applicable.

CHANGE OF INTENT

Deleted – Refers to original developer.

VOTE: 7-0 6/6/16

14.4. Reliance on Amendments or Revocation. Any amendments or revocation made in accordance with the terms of this Declaration shall be presumed valid by anyone relying on them in good faith.

14.3 Reliance on Amendments or Revocation. Any amendments or revocation made in accordance with the terms of this Declaration shall be presumed valid by anyone relying on them in good faith.

NO CHANGE OF INTENT

Renumbered

VOTE: 7-0 6/6/1614.5. Amendments to Conform with

Mortgagee Requirements. It is the intent that this Declaration and the Articles and Bylaws, and the development of the Property in general, shall now and in the future meet all requirements necessary to purchase, guarantee, insure or subsidize any mortgage of a Lot in the Project by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Federal Housing Administration and the Veterans' Administration. The Association and each Owner shall take any action or shall adopt any resolutions required by any mortgagee to conform this Declaration, the Articles, the Bylaws or the Project to

14.4 Amendments to Conform with Mortgagee Requirements. It is the intent that this Declaration and the Articles and Bylaws, and the development of the Property in general, shall now and in the future meet all requirements necessary to purchase, guarantee, insure or subsidize any mortgage of a Lot in the Project by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Federal Housing Administration and the Veterans' Administration. The Association and each Owner shall take any action or shall adopt any resolutions required by any mortgagee to conform this Declaration, the Articles, the Bylaws or the Project to the requirements of any of said entities or agencies

NO CHANGE OF INTENT

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VOTE: 7-0 6/6/16

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the requirements of any of said entities or agencies

14.6. County Approval Required for Certain Amendments. Notwithstanding any other provisions of this Declaration, no amendment, change, modification or termination of the Conditions, Covenants and Restrictions of this Declaration regarding the following provisions shall be effective for any purpose until approved in writing by the Director of Planning and Building of the County of San Luis Obispo, California: (a) maintenance of drainage basin and drainage facilities, (b) the notice concerning high voltage transmission lines, (c) the notice regarding odor complaints, (d) EPA approved fireplace requirements, and (e) dissolution of the Association.

14.5 County Approval Required for Certain Amendments. Notwithstanding any other provisions of this Declaration, no amendment, change, modification or termination of the Conditions, Covenants and Restrictions of this Declaration regarding the following provisions shall be effective for any purpose until approved in writing by the Director of Planning and Building of the County of San Luis Obispo, California: (a) maintenance of drainage basin and drainage facilities, (b) the notice concerning high voltage transmission lines, (c) the notice regarding odor complaints, (d) EPA approved fireplace requirements, and (e) dissolution of the Association.

NO CHANGE OF INTENT

Renumbered

VOTE: 7-0 6/6/16

14.6 Technical Amendments. The Board of Directors, by unanimous vote, may amend the Declaration to correct nonmaterial errors associated with the restatement process, typos, internal inconsistencies, and any other technical errors.

NEW SECTION

Consistent with civil code and court cases.

Allows for amendments to correct nonmaterial errors.

VOTE: 7-0 6/6/1614.7 Required Amendments .   If any law

applicable to the Development is enacted after the date of recording of these CC&Rs which directly contradicts, restricts, limits or changes any provision contained herein, these CC&Rs will be deemed amended by operation of law.   Any provision herein to the contrary

NEW SECTION

Allows for amendments as laws change.

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notwithstanding, if an amendment occurs by operation of law the Board of Directors may, by unanimous written consent, cause a document describing the amendment by operation of law to be distributed to the Members and recorded with the San Luis Obispo County Recorder’s Office as an amendment to these CC&Rs.

VOTE: 7-0 6/6/16

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SECTION 15. GENERAL PROVISIONS

15.1. Headings. The headings used in this Declaration are for convenience only and are not to be used to interpret the meaning of any of the provisions of this Declaration.

15.1 Headings. The headings used in this Declaration are for convenience only and are not to be used to interpret the meaning of any of the provisions of this Declaration.

NO CHANGE

VOTE: 7-0 3/14/16

15.2. Severability. The provisions of this Declaration shall be deemed independent and severable, and the invalidity or partial invalidity or unenforceability of any provision or provisions shall not invalidate any other provisions.

15.2 Severability. The provisions of this Declaration shall be deemed independent and severable, and the invalidity or partial invalidity or unenforceability of any provision or provisions shall not invalidate any other provisions.

NO CHANGE

VOTE: 7-0 3/14/16

15.3. Cumulative Remedies. Each remedy provided for in this Declaration shall be cumulative and not exclusive. Failure to exercise any remedy provided for in this Declaration shall not, under any circumstances, be construed as a waiver thereof.

15.3 Cumulative Remedies. Each remedy provided for in this Declaration shall be cumulative and not exclusive. Failure to exercise any remedy provided for in this Declaration shall not, under any circumstances, be construed as a waiver thereof.

NO CHANGE

VOTE: 7-0 3/14/16

15.4. Violations as Nuisance. Every act or omission in violation of the provisions of this Declaration shall constitute a nuisance and, in addition to all other remedies herein set forth, may be abated or enjoined by any Owner, any member of the Board, the manager or the Association.

15.4 Violations as Nuisance. Every act or omission in violation of the provisions of this Declaration shall constitute a nuisance and, in addition to all other remedies herein set forth, may be abated or enjoined by any Owner, any member of the Board of Directors, the manager or the Association.

NO CHANGE

VOTE: 7-0 3/14/16

15.5. No Discriminatory Restriction. No Owner shall execute or cause to be recorded any instrument which imposes a restriction upon the sale, leasing or occupancy of his Lot on the basis of race, sex, marital status, national ancestry, color or religion.

15.5 No Discriminatory Restriction. No Owner shall execute or cause to be recorded any instrument which imposes a restriction upon the sale, leasing or occupancy of his Lot on the basis of race, sex, marital status, national ancestry, color or religion.

NO CHANGE

VOTE: 7-0 3/14/16

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15.6. Access to Books. Any Owner may, at any reasonable time and upon reasonable notice to the Board or manager at his Own expense, cause an audit or inspection to be made of the books and financial records of the Association.

15.6 Access to Books. Any Owner may, at any reasonable time and upon reasonable notice to the Board of Directors or manager at his Own expense, cause an audit or inspection to be made of the books and financial records of the Association.

NO CHANGE

VOTE: 7-0 3/14/16

15.7. Liberal Construction. The provisions of this Declaration shall be liberally construed to effectuate its purpose. Failure to enforce any provision hereof shall not constitute a waiver of the right to enforce said provision thereafter.

Liberal Construction. The provisions of this Declaration shall be liberally construed to effectuate its purpose. Failure to enforce any provision hereof shall not constitute a waiver of the right to enforce said provision thereafter.

No Change of Intent

Relocated to 2.1 and 2.2

VOTE: 7-0 2/8/1615.8. Notification of Sale, Lease or Financing

of Lot. Concurrently with the consummation of the sale, lease or financing of any Lot, or within five (5) business days thereafter, the Owner or purchaser shall notify the Association in writing of such sale, lease or financing. Such notification shall set forth the name of the purchaser, lessee or mortgagee and transferor, as applicable, the common address of the Lot sold, leased, or financed, the purchaser's, lessee's or mortgagee's mailing address, and the date of sale, lease or financing. Prior to the receipt of such notification, any and all communications required or permitted to be given by the Association, the Board or the manager shall be deemed to be duly made and given to the purchaser, lessee or mortgagee if duly and timely made and given to the Owner whose name appears in the

15.7 Notification of Sale, Lease or Financing of Lot. Concurrently with the consummation of the sale, lease or financing of any Lot, or within five (5) business days thereafter, the Owner or purchaser shall notify the Association in writing of such sale, lease or financing. Such notification shall set forth the name of the purchaser, lessee or mortgagee and transferor, as applicable, the common address of the Lot sold, leased, or financed, the purchaser's, lessee's or mortgagee's mailing address, and the date of sale, lease or financing. Prior to the receipt of such notification, any and all communications required or permitted to be given by the Association, the Board of Directors or the manager shall be deemed to be duly made and given to the purchaser, lessee or mortgagee if duly and timely made and given to the Owner whose name appears in the Association records. Mailing

NO CHANGE

Renumbered

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Association records. Mailing addresses may be changed at any time upon written notification to the Association. Notices shall be deemed received forty-eight (48) hours after mailing if mailed to the purchaser, lessee, mortgagee or to his seller, lessor or mortgagor if the Association has received no notice of transfer, as above provided, by certified mail. return receipt requested, at the mailing address above specified. Notices shall also be deemed received twenty-four (24) hours after being sent by telegram or upon personal delivery to any occupant of a Lot over the age of twelve (12) years.

addresses may be changed at any time upon written notification to the Association. Notices shall be deemed received forty-eight (48) hours after mailing if mailed to the purchaser, lessee, mortgagee or to his seller, lessor or mortgagor if the Association has received no notice of transfer, as above provided, by certified mail. return receipt requested, at the mailing address above specified. Notices shall also be deemed received twenty-four (24) hours after being sent by telegram or upon personal delivery to any occupant of a Lot over the age of twelve (12) years.

VOTE: 7-0 3/14/16

15.9. Number: Gender. The singular shall include the plural and the plural the singular unless the context requires the contrary, and the masculine, feminine and neuter shall each include the masculine, feminine or neuter, as the context requires.

15.8 Number and Gender. The singular shall include the plural and the plural the singular unless the context requires the contrary, and the masculine, feminine and neuter shall each include the masculine, feminine or neuter, as the context requires.

NO CHANGE

Renumbered

VOTE: 7-0 3/14/16

15.10. Exhibits. All exhibits referred to are attached to this Declaration and incorporated by reference.

15.9 Exhibits. All exhibits referred to are attached to this Declaration and incorporated by reference.

NO CHANGERenumbered

VOTE: 7-0 3/14/1615.11. Easements Reserved and Granted.

Any easements referred to in this Declaration shall be deemed reserved or granted. or both reserved and granted, by reference to this Declaration in a deed to any Lot.

15.10

Easements Reserved and Granted. Any easements referred to in this Declaration shall be deemed reserved or granted. or both reserved and granted, by reference to this Declaration in a deed to any Lot.

NO CHANGE

Renumbered

VOTE: 7-0 3/14/16

15.12. Binding Effect. This Declaration shall inure to the benefit of and be binding on the successors and assigns of the heirs, personal representatives,

15.11

Binding Effect. This Declaration shall inure to the benefit of and be binding on the successors and assigns of the heirs, personal representatives, grantees,

NO CHANGE

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grantees, tenants, successors and Assigns of the Owners.

tenants, successors and Assigns of the Owners. VOTE: 7-0 3/14/16

15.13. Real Estate Taxes. If, and to the extent, that taxes are not paid by any Owner of a Lot and are allowed to become delinquent, they shall be collected from the delinquent Owner by the Association.

15.12

Real Estate Taxes. If, and to the extent, that taxes are not paid by any Owner of a Lot and are allowed to become delinquent, they shall be collected from the delinquent Owner by the Association.

NO CHANGE

Renumbered

VOTE: 7-0 3/14/16

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