Master Ddaration ....................., . ....2 ...................................... Member, Membership ....................................................................... Merchant Builder .............................. Mortgage ...........................................................................................

Mortgagee, Mortgagor ......................... ..... ................................... Notice and Hearing ........................................................................... Owner .............................................................................................. Person .................... ...................................................................... Phase 1 ............................................................................................ Phase of DeveIopment ............................ ..... ............................ Properties .......................................................................................... Public Property .................................................................................. Record, File, Recordation ..................... .................................... Restrictions ...................................................................................... Rules and Regulations ....................................................................... Supp1.ementalMaster Declaration ..................................................... VA .......................... ..........................................................................

. .

. . .

M a t i o n of Easements......................... ,.,..

3.

.4.

5.

6.

.......................................... 2.1 . Easements for Public Service Use ..................................................... 2.2. Other Easements .........I ...................................................................... Nabmas Crossing Community Association .................................. i.............. 3.1. Organidon of Master Association ................................................. 3 2. Duties and Powers ............................................................................. 3.3. Membership ...................................................................................... 3.4. Transfer .............................. .......... i .. .. Vuting.Fti&ts ......... .............................................................................. ..'...... 4.1. Classes of Voting Membemhip ......................................................... 4.2. Voting Rights ........................... . . . . ............................................... Functions and Jurisdiction of-MWerAssociation ........................................ 5.1. Permitted Functions .......................................................................... 5.2. Powers and Duties ............................................................................. 5.3. Rdw and Regulations ............................ .,.. .................................... 5.4. Prohibited Activities ......................................................................... Covenant for Assessments ............................................................................
6.1. 6.2. 6.3. 6.4.

7
7

7 7
7
8

8
9
10 10 10 12 11
12

Creation of Assessment Obligation ............*.......... ...-................. GeneralOperatingFuods .............................................................. Disbursements .................................. . , ...................................*......... Annual Assessments ................ ...,,.. ..................................................

12 12 12

13

6.6.

6.8.

6.5. Commencement of Annual Assessments .......................................... 13 Limitations on Annual Assessment Increases ................................... 13 6.7. Uniform Rate of Assessment ............................................................ 14

7.

............................................................................. Nonpayment of Assessments; Remedies ....................................... . . ..... 7.1. Nonpayment of Assessments; Remsdies .......................................... ........................ 7.2. Notice of Delinquent Assessment ..........................., , 7.3. Mortgage Protection................ .. .................... 7.4. Alternative Dispute ResoIution .........................................................
Exempt Property

14

15
15 15

15 15

...... ...................................................................................... 9. Maintenance and Repair Obligations ...................,....*.............*............. ...... 19 9 1. Maintenance Obligations of Owners ................................................ 19 ..................................................... 9.2. F m Protection Access Easements 20 9.3. ..... Party ......... walls .......... 20 9.4. Damage to DweUing Units-Recombdon ...................................... 20 .... ...c ...t... . ...n .... .... 10. Use R d i. o s 21 .....*.*..............-. 21 10. I . Single F d y Residence ................................. . . 10.2. Business or .CommercialActivity ..................................................... 21 ................................................................ 1 0 . 3 . N u h c e s ...................... . 21 10.4. Signs ................. 1................................................................................ 22 10.5. parking and vehicular ~estrictions.................................................. 23 10.6. Animal Restrictions ............................... ., . ..................................... 24 10.7. Trash and Unsightly Items ................................................................ 24 10.8. TemporaryBuildings ......................................... .................... 24 10.9. Outside hstallations .......................................................................... 24 10.10. Antennae ........................................................................................... 25 10.11. Drilling ............................................................................................. 25 10.12. Further Subdivision .............................. .... ..................................... 26
A&s
;

Members of Committee .................................................................... Review ofPlans and Specifications .................................................. Meetings of the ARC ........................................................................ No Waiver of Future Approvals ....................................................... Compensation of Members ............................................................... hqwtion of Wok ........................................................................... Scope of Review ............................................................................... valiance ............................................................................................ Pre-Appmvals ....................................... ..........................

'

iii

10.13. Drainage ..................................., . ....................................... 10.14. Watersupply Systems .................... . . .... ............................... 10.15 . Inside Installations ..................... ... ..... . . ................................ 10.16. Views ................................................................................................. 10.17. Solar Energy Systems ...................................... . , ............................... 10.18. Installation of Front Yard Landscaping ...................... ............. 10.19 Rights of Disabled ........................................................................... 10.20. Post Tension Concrete Slab System ................................................

, . .

.......

. .

11.1. Insurance Obligations of Owners 11.2. Liability and Other Insurance ...........................................................

11.3.

................................................. Notice of Expiration Requirements ..................................................

28 28 29

12.1. Notice ................................................................................................ 12.2. RightofFiFst~fusal........................................................................ 12.3. Limited Assessment Exemption ...................................... i.. ..........12.4. FiaanciaI Records .............................................................................. 1 2.5. Agreements with Agencies ...............................................................
13.

29

30 30
30 30

D e c l h t and Merchant Builder Rights and Exemptions .............................

31 31
31 32

3 1nterestSofI)ecl~tandMe~h~tBuild~ .................................. 13.2. Exemptions ....................................................................................... 13.3. Declarant Representative ..................................................................

14.1. 14.2. 14.3. 14.4. 14.5. 14 .6 . f 4.7. .14.8.

Enforcemetltof~~tiom ........................ . , ................................... Severability ............. .................................. ...................................... Term *........ , ....,.. ; ........ ............*...,.......*.............*........*.... *.................. Interpretation ..................................................................................... Termination and Amendment ........................................................... No Public Right or Dedication .......................................................... Constructive Notice and Acceptme ................................................ Notices . ........................*............ , . . ...*........... 14.9. Nonliability and Indernnification .................................................... 14.10. Priorities and Incomistencies ............................................................ 14.11 Mergers or Consofidations ................................................................ 14.12. Dispute Notification and Resolution Procedure (Declarant and Merchant Builder Disputes) ..................................... '14.13 Additionai Provisions ....................................................................... 14.14. NoRepresentationsor Warranties ...................................................

14.15. Drainage Control................................................................................ 14.16. Gradiing ............................................................................................. 14.17 Improvements ....................................................................................

14.18. Property Lines ................................................................................... 14.19. Preliminary TileReport ................................................................... 14.20. Natomas Ah-port................................................................................. 14.2 1. Tramportation Management Association .......................................... 14.22 Approval by Declarant....................................................................... 14.23 Attorneys' Fees................................................................................... 14.24 Post-Judgment Attorneys' Fees.......................................................... 14.24. Captions .............................................................................................

15.

h e x a t i o n ofAdditional Property to the Properties

................................... 15.1. Additions by . . Declarant ..................................................................... l 5 . 2 . Other Ad&hons ................................................................................. 1 5.3. Rights of Added Territary Members ................................................. 15.4. Declaration of Annexation ................................................................ 15.5. Deannexation and Amendment ........................................................

45

45
45 46 46

46

EXHIBIT "A"

ARTICLES OF INCORPORATION OF THE MASTER

ASSOCIATION

EXHIBIT "B"- BYLAWS OF THE MASTER ASSOCIATION

MASTER DECLARATiON OF COVENANTS, CONDITIONS, RESTZUCTlONS

AND RESERVATION OF EASFMENTS

FOR
NATOMAS CROSSING COMMUNITY

(SINGLE FAMILY RIWIDENTIAL}

TWIS MASTER DECLARATION OF COVENANTS, CONDITTONS, RIESTRICTIONS AND RESERVATION OF EASEMENTS PORNATOMAS CROSSING COMMWNITY (SINGLE FAMILY RESIDIWMAL) (this %aster Dscldon") is made by ALLEGHANY PROPERTIES, XNC,, a Delaware corporation (nDeCim4").

. Sacmmento, Courrty of Sacramento,

A.

hereto and incorporated herein by t h i sreference.

DecaarantistheOwnet.ofdpropertyc*phae1'~intheCityof Sfate of Califdmribed i n Schedule 1 a m x e d

'

B. Deckant has deemed it desirable, for the efficientpmewation ofthe vdua and amenities i n the h p r t i e s (as hereidkc ddhed), to create a general p h for the development, we d enjoyment thereof T h e Propaties am p l d to constitute a "subdivision,"as defined in S d o n 11000 of the Cal'IfordaBusiness arid Rofessbns Code, mnhhhg two or more product types C O by two or more Merchmt Builders (as f i n e d herein). Tha general plan for development of the Properties will include a c o r p o ~ o n formed pursuant to the ~orniaNonproFit Public . . Benefit Corporation Law ta which will be assigned the powers of (1) a d m m k m g and enforcing the Restrictions, and (2) coIIwkg and disbursing the asesmmts a n d charges hereinafter created. Ikhmt wiU or has caused sucb w m o n , the Members of which will be the Owners of Lots in the Properties, to be formed to exercise such powers.
C.

D e c W intends to deveIop and convey d l of the Pmpwties p m m t to a general plan and subject t o the p e c t i v e wvwmts, conditions,d c t i o w , rights, reservations, easements, equitable ~~, and charges set forth herein. h l & alone may execute, acknowledge and Record a SupplementalMaster Declaration affecting solely a Phase of Development, so long as D w h t o m all of #e real property to be affected by such SuppIementaf Master I ) e c W o a Such Supplemental Declaration shall not conflictwith the provisions of this Master kdaration, but m y impose M e t conditions, covenants and restrictionsfor the opetation, protection and m a i m = of that Phase of Development

D. Declarant hereby declares that the Properties shall be held, sold, conveyed, encumbered, hypothecated, leased, used, occupied and improved subject to the easements, restrictions, reservations, rights, covenants, conditions and equitable servitudes contained in this Master Declaration, all ofwbich are for the purpose of enhancing and protecting the value, attractiveness and desirability of the Properties, in furtherance of a comprehensive, general plan for the protection, maintenance, W v i s i o n , improvement and sale of the Properties or any portion thereof. The covenants,conditions, restrictions, rights, reservations, easements and equitable servitudes set forth herein (1) shall run with and bwden the Properties and shall be binding upon all Persons having or acquiring any interest in the Propertiesor any part thereof, their heirs, successors and assigns; (2) shdI inure to the benefit of every portion of the Properties and any interest therein; (3) shall inure to the benefit of and be bmdhg upon Declarant, Merchant Builders, and their respective successors- in-interest, each Owner md each Owner's successors in i n t e and ~ (4) may be enforced by D ~ b t , m y Merchant Builder, any Owner and the Master Association.

1. Definitions. Unless otherwise expressly provided, the fobwing words and phrases when used herein have the following specified meanings.

1.I. h e x a b l e Territory. Annexable Territory means the real property described i n Exhibit "C"attached hereto and incorporated herein by this reference (excepting Phase 1 therefrom), all or any portion ofwhich may be made subject to this

Master ~eclaration pursuant to the provisions bf Article XV hereof.

1.2. ARC. ARC means the Axchikcturd Review C o d t t e e created pursuant to Article VIII hereof.

1.3. Articles. Articles means the Articles of Incorporation ofthe Master Association as mended or restated. A copy ofthe initial Articles is attached hereto as Exhibit "Anand incorporated herein by this reference.
1.4. Assessment, Am&. Annual Assessment means a charge against the Ownets and their Lots, representing a pottion of the CommonExpenses, which i s to

be levied as provided herein.

1.5.

Assessment, Special. Special Assessment means a charge against

a mcular Owner dirsctly attributable to, or reimbursable by, thai Owner, equd to the cast incurred by the M a s t e r Association for corrective action performd pursuant to the Restrictions, or a fine o r penalty assessed by the Board, plus interest and other hag^ on such Special Assessments as provided for herein, Special Assessmm&shall not include any late payment penalties, interest charges or costs (including attorneys' fees) incurred by the Evlaster Association i n the collection of b u d Assessments.

1.6. Beneficiary. Beneficiary means a Mortgagee under a Mo-e or a Beneficiary under a Deed of Tmt and the assignees of such Mortgage or Beneficiary.

1.7. Board or Board of Directors. Board or Board of Directors means the Board of Directors of the Master Association.
2.8. Budget. Budget means a written, itemized estimate of the Master Association's income and Common Expenses prepared pursuant to the Bylaws.

Bylaws. Bylaws means the Bylaws of the Master Association as adopted by the Board initially in the form of Exhibit "Bnattached hereto and incorporated herein by this reference, a s amended.
1.9.

1.lo. City. City means the City of Sacramento, i n the County of Sacramento, State of California, and its various departments, divisions, employees and representatives. 1.1 1. Close of Escrow. Close of Escrow means the date on which a deed is Recorded conveying a Lot within a Phase of Development. Among other exempt tsansfers, the term "Closeof Escrow" herein shall not include the Recordation of a deed (i) between Dsclarant and (a) any successor to any rights of Deckant hereunder o r @) any Merchant Builder, or (ii) between Merchant Builders. 1.12. Common Expenses, Common Expenses means, subject to the provisions of Section 5.4 of this Master Declaration, those expenses for which the Master Association i s responsible under this Master Declaration, including the a d and estimated costs of: unpaid Special Assessments; managing and administeringthe Master Association including, but not limited to, compensation paid by the Master Association t o managers, accountants, attorneys and other consdtants and employw, liability insurance, workds wmpensation inswrance, and other bwance covering the directors, officers and agents of the Master Association; bonding the members of the management body; taxes paid by the Master Association; and all other items incurred by the Master Association for any reason wh-ver i n cumection with the Properties, for the common benefit of the Owners.

1.1 3. County. County means the County of Sacmento i n the State of California, and its various departments, divisions, employees and representatives.
1.14. Declarant. Declarant means Alleghany Properties, Inc., a Delaware corporation, its successors and any Person to which it shall have assigned certain specific righis hereunder, i n whole or i n part, by express written assignment Any such assignment may include some or all of the rights of the DecIarant and may be subject to such conditions or limitations as Alleghany Properties, Inc. may impose i n its sole and absolute discretion. As used in this Section, "successorm means a Person who acquires Declaxaat or substantially all of its assets, or who merges with Declarant, by sale, merger, reverse merger, consokiation, partnership reorganization, sale of stwk ox assets, operation of law or otherwise.
htmment Record4 pursuant to Article XV hereof to annex additiond real property to the Properties.

1.15

Declaration of Annexation. Declaration of Annexation means an

1.16. Deed of Trust. Deed of Trust means a Mortgage as defined herein.

1.17. Dwellingunit. DwellingUnitmeansabui~dingl~catedon~L~ designed and intended for use and occupancy as a residence by a single Family.

1.18. Family. Family means (a) one or more natural persons related to each other by blood, matriage or adoption, or @) a group of natural persons not all so related, but who maintain a common household in a DweUing Unit on a Lot. 1.19. FHLMC. FHLMC means the Federal Home Loan Mortpge cqmration created by Title II of the Emergency Home Finance Act of 1970,and its successors.
1.20. Fiscal Year. Fiscal Year means the h a l accounting d r e p o w period of the Master Association selected by the Board.

1.21, FNMA. FNMA m e a n s the Federal National Mortgage Association, a government-sponsoredprivate corporation established p m t to Title VILI ofthe Housing and Urban Development Act of 1968, and its suocessors. 1.22. CfNMA, GNMA means the GovernmentNational Mortgage Association administered by the United States Department of Housing and Urban Development, and its successors.
1.23. Improvement, Improvement m&ns any structure or a p p u r t e ~ ~ ~ ~ ~ e thheteto, hcIuding, but not limited to, buildings, wakwys, sprinkler pipes, recreational kilities, rods, driveways, parking meas, fences, screening walls, block walls, retaining walls, stah, decks, landscaping, antennae, the paint on all & o r surfaces, hedges, windbreaks, patio covers, rail-, planplanted trees and shrubs, poles, signs, storage areas, exterior air conditioning and water-softening f m t u a or equipment.
the City, the County and any other local or municipal governmental entity or agency includii, without l i ~ o any h special assessm&t d i s t r i c t ,mintman= or

124. LadGovernmental Agency. L m a l Governmental Agency means

community facilities district.

1.25. &. Lot means any &dentid L o t shown upon any Recorded subdivision map of any portion of the Properties (as such lot may be modified by any Recorded lot line adjusment),together with Improvements, if any, thereon.

1.26. Manager. Manager means the Person, firm or agent employed as an independent contractor by the Master Association to @om functioqs ofthe Master Association, as limited by the Rbctions and the terms of the agreement between the Master Association and said Person.

1.27. Marketing Period, Marketing Period means that period of t h e -mnmencitlgon the date of Recordation of this Master Declmtion and extending until the earlier to occur of (i) Close of Escrow for the sale of dl Dwelling Units in the

Properties following annexation of a11 of the Amexable Territory, or ( i i fifteen ) (15) years following the first Close of Escrow for the sale of a Lot within a Phase of Development. 1.28. Master Association. Master Association means Natomas Crossing Community Association, a California nonprofit corporation (formed p m t to the CaliforniaNonprofit Public Benefit Corporation L a w ) , its successors and assigns.
1.29.

Master Declaration. Master Declaration means this instrument as

amended or restated.
1.30. Member, Membership. Member means any Person holding a M m k h i p . Membership means the property, voting and other rights and pdvileges of Members as provided in the Restrictions, together with the correlative duties and obligations contained therein.
1.3 1, Merchant Builder. Merchant Builder means 'a Person who acquires a portion ofthe Properties for the pwpose of developing such portion for resale to the general public and who is designated by Declarant as a Merchant Builder in a Recorded document; provided, however, that the term "MerchantBuildernshall not mean

Declarant.

1.32. Mortgage. Mortgage means any Record4 mortgage or deed of trust o r other conveyance of one or m o r e Lots or other portion of the Properties to secure the performance of an obligation, which will be reconveyed upon the compfetion of such performance.
1.33. Mortgagee, Mortgagor. Mortgagee means a Person to whom a Mortgage is made and includes the Beneficiary of a Deed of Trust. Mortgagor meam a Person who mortgages bis or her Lot to angther (i.e., the maker of a Mortgage), and includes the Trustor of a Deed of Trust. The term "Trustor"i s synonymous with the term "Mortgagor"and the term "Beneficiary"is synonymous with the term "Mortgagee."
a hearing before the Board as pmvidsd i n the Bylaws.

1.34. Notice and Hearing. Notice and Hawing means written notice and

1.35. Owaer. Owner means the Person or Persons, including Declarant and Merchant Builders, holding fee simple or long-term ground leasehold interest of Record to any Lot which is part of the Properti=. The term "Owner" includes a seller under an executory contract of sale but excludes Mortgagees. For purposes of this Master Declaration, a "long-termground leasehold interest" means a leasehold interest having an initial term of ten (10) years or longer.

1.36. Persoa Person means a natureh individual or any other entity with the legal right to hold title to real property.
1.37, Phase 1. Phase J means all of the red property described i n Paragraph A of the Preamble of this M a s t e r Declaration.

1.38. Phase of Development. Phase .ofDevelopment or Phase meam (i) Phase 1 or (ii) any portion of the Properties consisting of ten or more conti@ow Lots as iet forth on the applicable phasing schedule prepared by a Merchant Builder and approved by Declarant in its sole and absolute discretion and covered by a Declaration of Annexation.
1.39. Properties. Properties means Phase I, together with such p r t i ~ m of the h e x a b l e Territory which are described in a Declaration of Annexation. 1.40. Public Prop@. Public Property means all median strip, slopes, hm, h w i n g , parks, trails, sidewalks, intersectionplazas and irrigation and -e s y s t e m on public property owned or maintained by 'a LocaI Government Agency.
1.41. Record, Fib, Recordation. Record, File, or Recordation means, with fespect to any document, the recordation or filing of such document in the officeof the County Recorder,

1.42. Mctions. Restrictions meam this Master Declaration, the Articles, Bylaws and the Rules and Regulations ofthe Master Association.
1.43. Rules and Rejqdations. Rules and ReguMom means the rules and ~gdations adopted by the Board pursuant to this Master Declaration or the Bylaws, as amended or &ted. -

'

1.44. Supplemeatal Master Declaration. Supplemental Master Declaralion mans m y declaration of covenants, conditions and restrictions and reservation of easements or s h i h document supp)ementbgthis Master Declaration for a l l or a portion of the Propdies, which b u m e n t shall be 'Recorded in Official Records of the County. 1.45.
States of America and m y deparbnent or agency of the United States government which succeeds to VA's function of issuing guarantees of notes secured by mortgages on residentid real estate.

m.VAmeanstheDe~entofVeteransAffaixsoftbeUnited
ARTICLE 1 1

2.

Reservation of Eslsements.

2.1. Easements for Public S e d c e Use. Declmt hereby reserves easements over the Properties for public services of the Local Governmental Agencies, including but not limited to, the right of law enforcement and fire protection personnel to enter upon any part of the Properties for the purpose of carrying out their officialduties.
2.2. Other Easements. Declarant hereby resemes for the benefit of d l ofthe Properties reciprocal easements for access, ingress and egress for all Owners to 4 from their r e s m v e Lots; for installation and repair of utility d c e s ; fox necessary

maintenance and repair of any Improvement constructed by Declarant or a Merchant Builder; easements as may be shown on any Recorded subdivision map of any portion of the Properties; and for such other purposes specified in this Master Declaration. Such easements may be used by Dedarant and the Merchant Builders, their successors, invitees and purchasers, the Master Association, and all Owners, their guests, tenants and invitees, residing on or temporarily visiting the Properties, for pedestrian walkways, vehicular access and such other purposes specified herein or reasonably necessary for the use, maintenance and enjoyment of a Lot.

3.

Natomas Crossing Community Association.

Organization of Master Association. The Master Association is or 3.1. shall be incorporated under the name of Natomas Crossing Community Association, as a corporation not for profit organized under the ~alifomia Nonprofit Public Benefit
Corporation Law.

Duties and Powers. The Master Associatioi has the duties and 3.2. powers set forth in the ~ c t i o nand s also has the general and implied powers of a nonprofit public behefit wxpoxation, generally t o do all things that a corporation organid under the laws o f the State of Calrforniamay lawfully do which are necessary or p r o p in operating for the peace, hedth, comfort, safety and general w e b of its Members, subject only to the limitations upon the exercise of such powers set forth in the Restrictions.
3.3. Membership. Every Owner shall automatidy be a Member and shall remain a Member until such O m d s Lot ownership ceases, at which time such Owner" s Membership shall automatically cease. Ownership of a Lot is the sole qMcation for Membership. Memberships are not assignabIe except to the Person to whom title to the Lot has been transferred, and every Membership is appurtenant to and may not be separated from the fee ownership of such Lot.

3.4. Transfer. The Membership of any Owner may not be transferred, pledged or alienated in any way, except upon the transfer or encumbrance of such Owner's Lot, and then ody to the transferee or Mortgagee of such Lot. A prohibited transfer is void and will not be reflected upon the books and records of the Master Association. A Member who has sold his Lot t o a contract purchaser under an agreement to purchase may delegate his Membership rights t o the contract purchaser. The delegation must be i n writing and must be delivered to the Board before the contract purchaser may vote. The contract seller shall remain liable for ail charges and assessments attributable to the contract seller's Lot which accrue before fee tide to the Lot is transferred. If an Owner fails or refuses to transfer his Membership to the purchaser of such h e r ' s Lot upon transfer of fee title (or long-term leasehold) thereto, the Board may record the transfer upon the Master Association's books. Until satisfactory evidence of such transfer has been presented to the Board,the pwchaser will not be entitledto vote at Master Association meetings. The Master Association may levy a reasonable transfer

fee against a new Owner and such Owner's Lot (which fee shall be added to the Annual Assessment chargeable to such new Owner) to reimburse the Master Association for the administrative cost of bansferring the Membership to the new Owner on the Master Association's records. Such fee may not exceed the Master Association's act& cost involved in changing its records. ARTICLE IV
4.

Voting Rights.

4.1. Classes of Voting Membership. The Master Association has three (3) classes of Membership as follows: 4.1 -1. Class A. Class A Members are alI Owners, except DecIarant and Merchant Builders shall not be C k s A Members for so long as there exists a Class B Membership. Each Class A Member i s &titled to one (1) vote for each Lot owned by such Class A Member which is subject t o Annual Assessments purmant to Section 6.1 below. Declarmt and Merchant Builders shall become Class A Members upon conversion of their respective Class B Memberships as provided below. Whea more than one (I) Person owns any Lot, all such Persons are Members. The vote for such h t shall be exercised in accardance with Section 4.2, but no more than one (1) . Class A vote may be cast for any Lot.

4.1.2. Class B. The Class B Members are Decfarant and dl Merchant Budders. The Class B M m b m are entit14 to thee (3) votes for each Lot owned by the Deckant o rm y Merchant Builder that is subject to Annual Assessments p w b t to W o n 6-1blow. The Class B Memberships shall be converted to Class A Memhhips immediately upon the Close of h w for the sale of three hundred eightyniae (389) Lots in the Properties.
4.1.3. Class C. The Class C Memkr &all be D e c W t w v e of whether Declmnt is or is not an Owner. The Class C Membership shall not be considered a part of the voting power of the Master Association and DecIamt is not entitlsd t o exercise any Class C vote ex* for the pupuse of electing those members ofthe Board which the Class C Membership is entitled to elect hereunder. The Class C Member is entitled to solely elect a majority of the members of tbe Board of Directors until the last day ofthe Marketing Period; provided, however, that a t any time prior to the last day of the Marketing Period, Declsrmt xhall have the right to termhate bechant's rights a s a Class C Member by executing and delivering t o the M a s t e r Association a letter whereby Declarant relinquishes all of Declarmts rights as a Class C Member pursuant to tbis Section 4.1.3. Notwi-ding anything containedherein to the 'c~ntrqy, Deelmt shall nut be entitled (using the Class C vote or Class B vote, or othekse) to elect more than seventy-five percent (75%) of the members of the Board of Directors.

4.2.

Voting Rights.

4.2.1. Specified Actions. All voting rights are subject to the Restrictions. As long as Declarant hoIds a veto right pursuant to Section4.2.3 and Section 4.2.4 below, any provision of the Restrictions which expressly requires a vote or written consent of a speczed percentage (is., other than actions requiring merely the vote or written consent of a majority of a quorum) of the Master Association'svoting power before action may be undertaken shall require the approval of such specified percentage of the voting power of the Membership as well as the written c o m t of Declarmt. Upon termination of Declaranttsveto right, any provision of the Restrictions wbich expressly requires a vote or written consent of Owners representing a specified percentage (i.e., other than actions requiring merely the vote or written consent of a majority ofa quorum) of the Master Association's voting power before action may be undertaken shall then require the vote or written consent of Members representing such specified percentage of both (I) the Master Association's total voting power and (2) the Master Association's voting power residing in Members other than.Declarant and every Merchant Builder.
4.2.2. Co-Owners. Members are entitled to one (1) vote for each Lot in which they hold the interest required for Membership, When more than one (1) Person holds such interest in any Lot ("co-owner"), aI1 such co-ownmare Membexs and may attend any Master Association meetings, but only one (1) such co-owner M I be entitled to exercise the vote to which the Lot is entitled. Co-owners owning the majority interests in a Lot may designate i n writing om (1) of their number to vote. Fractional votes shall not be allowed, and the vote for each Lot shaXI be exercised, if at all, ss a unit. Where no voting co-owner is designated or i fthe designation has been revoked, the vote for the Lot shall be exercised as the co-ownas owning the majority interests i n the Lot agree. UnIess the Board receives a written objection i n advance from a co-owner, it shall be wnclusively presumed that the corresponding voting -owner is acting with his co-ownerst consent. No vote may be cast for any Lot if the co-owners present in person or by proxy owning the majority interests in such Lot cannot agree to said vote or other action. The nonvoting co-owner o r co-ownen are jointly and s e v d l y responsible for all of the obligations imposed upon the jointly owned Lot and are entitled to all other benefits of ownership. All agreements and determinations lawfully made by the Master Association in accordance with the voting percentages established i n the Rdctions are binding on all Owners and their successors in interest.
4.2.3. Declarant's Veto Right. D e c l m t shall have a veto right with respect to specified actions of the Master Association as provided i n the Restrictions. Such veto right shdl termhate upon the last day of the Marketing Period., provided, however, that at my time prior to the last day of the Marketing Period, Declarapt shall have the right to terminate I)eclarantfsveto right by executing etnd delivering to the Master Association a letter whereby Declarant relinquishes all of Declarat's veto right purmant to Section 4.2 and the Rdctiom.

4.2.4. Actions Subject t o Veto. In addition to other veto rights of Dsclarant set forth herein, the following actions authorized by this Master Declaration are

subject to the veto right of Declarant: actions for which Mortgagee consent is requed under Section 14.5.2 of this Master Declaration; the activities listed in Section 5.4 of this Master Declaration; any increase in Annual Assessments as provided in Sections 6.6 of this Master Declaration; any change i n the architectural and landscaping design, provided in Sections 8.8 of this Master Declaration; and any proposed termhation or amendment to this Master Declaration.

5,

Functions and Jurisdiction of Master Association.

5.1. Permitted Functions. The Master Assodation is formed exclusively for those social welfare purpos& and activities which are specifidlly and directly related to administering and enforcing the Restrictions (the "Permitted Functions"). Notwithstanding the foregoing, Permitted Fmctions do not include those activities prohibited by Section 5.4 below. The funds m d resources of the Master Association Ml be utilized solely and exclusively for the direct costs of Permitted Functions. 5.2, Powers and Duties. The Master Association has all of the powers of a California nonprofit public knefit corporation, subiect only to such limitations upon. the exercise of such powers as are expressb set forth ininthe ~estrictions.Subject to the Restrictions, including without limitation the exemptions of Declarant and Merchant Builders herein, the Master Association has the p e r to perfom any and all lawful acts which may be necessary or proper for or incidental to the exercise of any of the express powers of the Master Association. Subject to the foregoing provisions, the Master Association, acting through the Board, has:
5.2.1. Assessments. The power and duty t o levy assessments on th6 Owners of Lots in Phases of Development in which assessments bave commend and to c01Iect and enforce payment of such assessments in acmrdance witb the provisions

'

of Article VI hereof.

5.2.2, L e d and Accounting Services. Subject t o the tams and ptovisions hereof,the power but not the duty, if deemed appropriate by the Board, to retain and pay for legal and accounting services necessary o r proper i n enforcing the Restrictions, and performing any of the other Master Association duties or rights.

5 . 2 . 3 . Contracts. Except as otherwise provided i n this Master D e c l d o neither ~ D e c l m t nor any of its agents shall enter any wntnrct which would bind the Master Association or the Board for a period i n excess of one (1) year.
52.4. Audit. The power and duty to permit any Owner, who m y be accompanied by an accountant or other consultant, at said O d s sole expense to audit or inspect the Master Association's books and records; provided that such audit or inspection is made during normal business hours and without unnecessary interference with the operations of the Manager or the Master A s s o c ~ o n .

5.2.5. Litigation. The power but not the duty to initiate, defend, settle or intervene in mediation, arbitration, judicial. or administrative proceedings on

behalf of the Master Association i n matters pertaining to the application or enforcement of the Restrictions.

5 . 2 . 6 . Insurance. The power and duty to maintain liability and fm h w a n c e with respect to personal property, if any, owned by the Master Association as provided herein i n furthering the purposes of and protecting the interests of the Master Association and Members and as directed by the Restrictions.
5 . 3 . Rules and Regulations. T h e Board may adopt such Rules and Regulations as it deems proper for the use and occupancy of the Properties. To be effective, a copy ofthe Rules and Regulations, as adopted, amended or repealed, must be mailed or otherwise delivered to each Owner. When mailed, delivered or posted, the Rdes and ReguZatiotiS shall have the same force and effect as ifthey were set forth herek, provided, however, that the Rules and R e ~ o n shall s be enforceable only to the extent that they are consistent with tbis Master Declaration, m y applicable Supplemental Master Declaration, the Articles and the Bylaws, and may not be used to amend any of such documents.
5.4. Prohibited Activities, Notwithstanding any other provisions of this Master Declaration or the other R&ctions, the Master Association is expressly prohibited fmm undertaking o r performingany of the following activities, or expending or otherwise utilizing Master Association funds or resourcestherefor, and the following activities s h d n o t constitute Permitted Functions of the Master Association:

5 -4.1. P r o m Manager. The Master W i a t i o n shall not hire any full time employees, or rent, lease or otherwise furnish offices, personnel or other facilities, whether located within the Properties or off-site. The Master Association Manager shall at dl times be a professional manager employed as an independent contractor officed at its own place of business.

OffsiteNuisahces. The Master Assmiation shall not use 5.4.2. any Annual Assessments or Special Assessments or ~ nM a s t d e r Association funds or resources to abate any annoyance or nuisance emmating from outside the physical boundaries of Phases of Development in which Annual. Assessments have commenced.
5.4.3. Political Activities or Contributions. Tbe Master Association shall not engage in any F e d d , State or local political activities or activities intended to influence a g o v e m m d action affecting areas outside the boundaries of the Properties (e-g., endorsement or support of (a) legislative or admiitrative actions by a Local Governmental Agency wbich affect persons or property outside the Properties, (b) candidates for elected or appointed office, and (c) initiatives, recall elections or other ballot proposals). T h e Master Association is prohibited from conducting, sponsoring, participating i n or expending funds or resources on any activity, campaign or event, including without limitation any social or political campaign, event or activity, wbicb does not directly and exclusively pertain to a Permitted Function.

54.4. Subassociation. For so long as Declarant has a veto right under Section 4.2.3 of this Master Declaration, neither the Master Association nor my Owner nor any Merchant Builder, without the prior written consent of Declarant, shall form an association for the purpose ofmanaging dl or any portion of the Properties. 5-45. Mortgagee Consents. For so long as Declafant has a veto fight under Section 4.2.3 o f this Master Declaration, the Master Association may not, without the prior written consent of Declarant, take any action listed in Section 14.5.2 of the Master Declaration for which the consent of Owners or first Mortgagees is required.
5.4.6. Reserved Rights ofDsclarant and Merchant Builders. For so 10ng as I ) e c h t or any Merchant Builder is entitled to exercise any right, or avail itself of any exemption, in A c 1 e XUI or elsewhere in this Master Declaration, neither the Master Association, nor the Board, nor any Owner shall take any action which is inconsistent with, or which would abrogate, any such right or exemption.
-

6.

Covenant for Assessments.

6.1. Creation of Assessment Obligation. D e c l m t and each Merchant Builder, for each Lot owned, hereby covenantsto pay, and each Owner, by acceptan= of a deed to a Lot, whether or not it shalt be so expressed in such deed, is deemed to covenant to pay t o the Mastex Association Annual Assessments and Specid Assammts to be establiihed and collected as provided herein. The Master Association m y not or collect m y Annual Assessment or Special Assessment that e x d the m o u n t for the purpose or purposes for which it is laid Except as provided in this Section 6.1, all Annual Assessments and Specid Assessments, together with interest, costs and reasonable attorneys' fees for the wflectionthereof, are the persod obligation ofthe Person who was the Owner ofthe Lot at the time when fhe Annual Assessment specid Assessment fell due. The personal obligationfor delibquent h u a l Assessments or Special k e n t s may not pass to any new Owner ("Purchasern)unless expre~sly assumed by the Purchaser. The Master Assmiation Ml not impose o r collect any Annual Assessment Or Special Assessment, penalty or fee wGch e x & the BMOWI~ n e c e s q for the purpose o r purposes for which it is levied,

6 . 2 . General Operating Funds. The Board shall Budget, establishand maintain an account into which shall be deposited all m o n k paid t o the Master Association (the "General Operating F u n d ! ? ) , and from which disbursements shall be made, as provided herein, for Common Expenses of the Master Association a d such other expenses incurred by the Master Association's p e r f o ~ c of e its functions the Restrictions. Disbursements from the General Operating Account shall be made for such purposes as are necessary for the discharge of the Master Associationts responsibilitiesunder the ~ c t i o n sfor , the common benefit of dl Owners.
6.3, Disbursements. Disbursements from the General Operating ~ k u nshall t be made for the purposes set forth in Section 6.2 above and for such o t h e r

purposes as are necessary for the discharge of the Master Association'sresponsibilities under the Restrictions, for the common benefit of all Owners. All amounts deposited into the General Operating Account must be used solely for the pwposes authorized by the Restrictions.
6.4. Annual Assessments. The Master Association Common Expenses shall be allocated among the Owners and their respective Lots within the Properties based upon the number of Assessment Units chargeable to each such Lot. Unless otherwise provided in a Supplemental Master Declaration, each Lot, and the Owner thereof, shall be allocated one (1) ,AssessmentUnit. Annual Assessments shall be levied against the Owners of Lots in the mounts as set forth in the Master Association Budget on file with the Manager.

6.5.

Commencement of Annual Assessments.

6.5.1. Commencement Date. Annual Assessments shall commence as to each Lot in each Phase of Development on the first day of the fixst month following the month i n which the first Close of Escrow occurs for the sale of a Lot in such Phase of Development of the Properties. Each and every Lot i n such Phase shall thereafter be subjsct to its share of the then established Annual Assessment as set forth herein The &-stAmual Assessment shall be adjusted according to the number of months remaining i n the k a l year established pursuant to the Bylaws. 6.5.2. PaymentPmcedure. TheBoardsballfixthearzlountofthe Annual Assessment to be levied against Lots at least thirty ( 3 0 )days i n advance of eachAnnual Assessment period. However, unless otherwise established by the Board, the initial A n n d Assessment shall be levied in accordance with the most recent Budget on fik with the Manager. Written notice of any increase in the amount of the h u a l Assessment shall be sent by first class mail to every Owner subject thereto, not less than thirty (30) nor more than sixty (60) days prior to the increased Annual Assessment becoming due. All hstahents of Annual Assemeats shall be collected in advance on a regular basis by the Board, at such frequency and on such due dates as the Board determines from time to time i n its sole and absolute discretion,
6.5.3. Excess Funds. The Board of Directors may determine that excess funds remaining i n the General Operating Account, over and above the amounts used for the operationof the Properties, may beured to reduce the fdowing year's Annual Assessment.

6.6. Limitations on Annual A s s e s s m e n t Increases. The Board shall not levy, for any fiscal year, an Annual Assessment which exceeds the "Maximum Authorid Annual Assessment"as determined pursuant to Sections 6.6.1 and 6 . 6 . 2 below, unless first approved by the vote of Members representing at least a majority of votes at a meeting or written ballot of Members in which more than fifty percent (50%) of the total voting power of the Master Association is represented.

' I u a m s w PW P=Poqsnv m ma v q dh ~namssasw p v ~ua~~~a~ arom d s fzo ns (I) auo L m pma aw ~ ~ a O W W ~ F m Y ~I t r I W tm J PW-1 Pns Aq P P q 4 p~na $w&aW 'mad p s y qrns 8-p t r q w a q pm p g A m JOJ 3uauIssassv p w wogtnv ummpty atp w q ssa~ $mom.m q ~namssxw A m 31 Snaarssassv pw rn SayaI v o a a q j I 7~nassassv pnmv -1 qrns a p w d~~adazd PW P=POWW - P F W a V s~l3na~=w p v Aq p aq XQW a o p e ! ~ o s l ~a m a~ q jo suoputy pguassa puts v n q ~ o d atp q JRQ saqmwp pE08 JI -Wa~SSaSV ~ ~ ~ 3 l d d . I Cg.9 l s .

~~~~

ARTICLE VrI
7.
Nonpayment of Assessments; Remedies.

7.1. Nonpayment of Assessments; Remedies. Any installment of Annual Assessments or Specid Assessments is delinquent if not paid within fifteen (1 5 ) days of the due date established by the Board and shall be subject to a late charge in an amount equal to the greater of ten percent (1 0%) of the amount of the delinquent payment or Ten and no1100 Dollars ($10.00). Any installment of Annual Assessments or Special Assessments not paid within thirty (30) days after the due date, plus all reasonable costs of collection (including attorneystfees) and late charges as provided herein bears interest at the maximum rate permitted by law commencing thirty (30) days from the date that such Annual Assessment o r Special A s s e s s m e n t becomes due until paid. The M a s t e r Association shall be entided t o any and a l i rights and remedies which the Master Association may have at law or i n equity, including a suit to recover a money judgment for unpaid &sements. The Master Association need not accept m y tender of a partial payment of m y imtahent ofAnnual Assessments or Special Assessments and dl costs and attorneys' fees attributable thereto, and any acceptance of any such tender does not waive the Master Association's right t o demand and receive full payments thereafter.

7 . 2 . Mortg;ag;eProtection, The enforcementof any provision hereof shall not defeat or render invalid the rights of the Beneficiary under any Recorded Deed of Trust upon a Lot made in good faith and for value. After a Beneficiary or other Person obtains title to a Lot by judicial foreclosure or by means set forth in a Deed of Trust, the Lot shall remain subject t o the Master Declaration and the payment of dl k t a h e n t s of Assesmeots accruing after the date the Beneficiary or other Person obtains title.

'

7 . 3 . Alternative Dispute Resolution. In addition to such other rights and remedies that the Master Association may have a t law or i n equity, the Master Assmiation may, in its sole and absol&discretion, submit & dispute between an Owner and the Master Association regarding the Annual Assessments or Special Assessments imposed by the Master Association, to mediation, the final resolution of which shall be bjnding on the parties thereto. Such arbitration shall be conducted pursuant to the arbitmtion procedures adopted by the Americai Arbitration Association ar any successor thereto or to any other entity offering arbitration services that is acceptable to the parties*

ARTICLE VIIl
8.

Architectural Control.

8.1. Members of Committee. The Architectural Review Commitlee, sometimes referred to herein as the "ARC," shall be comprised of five members. The initial members of the ARC shall be representatives of Dedarant until one (I) year after the date of this Master Declaration ("First Anniversary"). After the First Anniversary, the Board may appoint and remove two (2) members of the ARC, and D e c l m t may appoint

and remove a majority of the members of the ARC and fill any vacancy of such majority, until the last day of the Marketing Period; provided, however, that at any time prior to the last day of the Marketing Period, Declarant shall have the right to terminate Declarant's right to appoint and remove a majority of members of the ARC by executing aad delivering to the Master Association a letter whereby Declarant relinquishes all of Deciarant's rights pursuant t o this Section 8.1. ARC members appointed by the Board must be Memkrs, but ARC members appointed by DecIarant need not be Members. The ARC has the right and duty to promulgate reasonable standads against which to examine any request made pursuant to this Article in order to enswe that the proposed plans mnfom harmoniously t o the exterior design and existing materids of the buildings i n the Properties. Board members may also serve as ARC members.

8.2.

Review of Plans and SpecXcations. The ARC shall consider and

act upon dl plans and sp%c&ons submined for its approval under this Master D e c l d o n and perform such other duties as the Board assigns to it, including inspection of c~nstr~ction in progress to assure conformance with p h approved by the ARC. NO reconstnrction of an existing Improvement, installation of a new Improvement after Close of Escrow h m Declarant or a Merchant Builder, or alteration of an existing Impmvement ofany type, in the Properties may be commenced or maintained until.the

plans and specifications therefor showing the nature, kind, shape, height, width, exterior color scheme, materids Etnd location thereof have been submitted to and approved in writing by the ARC; provided, however, that my Improvement m y be repaintad without ARC approval so long as the Improvement i s repainted the identid color which it was last painted. Without limiting the generality ofthe foregoing, the provisions of this M c l e VIU apply to the coastruction, W a t i o n and alteration of soIar energy systems, as defined i n Section 801.5 of the California Civil Code, subject t o the provisions of California Civil Code Section 714, the City Building Code, applicable zoning regulations, and associated City ordinances, The Owner submitting the plans and specifications ("Applicantn)shaJl obtain a written, dated receipt therefor from an authorized agent ofthe ARC. Until changed by the Board, the address for submission of such plans and specificationsis the Master M 1 a t i o n t sprincipal office. The ARC shall approve p k and specifications submitted for its approval only if it determines that (a) the installpltion, construction or alterations c0ntempW thereby in the I o d o n s indicatedwill not be detrimental to the appearance ofthe m u n d i u g area ofthe Properties as a whole, and @) the appearance ofany structure plffected thereby will be i n harmony with the surrounding structum. Declmt and eack Merchant Builder need not seek or obtain ARC approval of any new Improvements consbucted on the Properlies by Declarant or the Merchant Builder, because the jwisdiction of the ARC is limited to new work and modificationsto existing Improvements which are commenced by an Owner after Close of Escrow for the sale from a Merchant Builder or Declarant. Moreover, each Owner may mnstsuct in a timely manner any damaged or destroyed Improvement on the Lot ofthe Owner with the same rnakrhis and to the same specifications as the Improvement existed before it was damaged or destroyed without the approval ofthe ARC,so long as the hprovement when orighdly constructed was either exempted hereunder o r ptpproved by the ARC.

Tbe ARC may condition its approval ofproposals or plans and specifications for any Improvement upon any of the folIowing: (1) the Applicant's fumishhg the Master Association with security acceptable to the Master Association against any mechanic's lien or other encumbrance which may be Recorded against the Properties as a result of such work, (2) such changes themin as it deems appropriate, or (3) the Applicant's agreement to complete the proposed w o r k within a stated period of time, and may require submission of additional p h s and specificationsor other infomation prior to approving or disapproving material submitted. The ARC shall also issue rules or guidefines PARC Rules") setting forth standards, specificationsand procedures for the submission of plans for approval, requiring a fee (as may be necessary) to accompany each application for approval, or stating additional factors which it will consider in reviewing submissions. The ARC may provide that the amount of such fee be uniform, or that it be determined in any other reawnable manner, such as by the reasonable cost of the construction, alterations or installations contemplated. The ARC may require such detail in plans and specifications submitted for its review as it deems proper, including, without limitation, landscape plans, floor plans, site plans, drainage plans, elevation drawings and descriptions or samples of exterior material and colors. Until receipt by.theARC of any required plans and spifications, the ARC may postpone review afm y plans submitted for approval. The ARC shall transmit its decision and the reasons therefor to the applicant at the address set forth i n the application for approval within forty-five (45) days after the ARC receives a l l required materials. Any application submitted pursuant to fhis &don 8.2 shall be deemed approved unless the ARC transmits written d i ~ v aor l a request for additional information or materials to the Applicant within forty-five (45) days after the date the ARC receives all required materials. The Applicant shall meet any Peview or permit requirements of the City prior to making any

comtruction, imtaktion or alterations permitted hereunder.

8.3. M e&gs of the ARC. The ARC shall meet as necessary to perform its duties. The ARC may, by resolution adopted in writing, designate an ARC representative (who may, but need not, be one of its members) to take any action or perform any duties for and on behalf of the ARC except the granting of variances pursuant to Section 8.8. In the absence ofsuch designation, the vote or written consent of a majority of the ARC constitutes an act of the ARC.
8.4. No Waiver of Future Appmvals. The ARC'S approval of any proposals or plans and specifi.catimor drawings for any work done o r proposed or i n connection with any otber matter requiring the ARC'S approval does not waive any right to withhold approval of any similar proposals, plans and specifications, drawings or matters subsequentIy or additionally submitted for approval. 8.5. Compensation of Members. Except as otherwise approved by a majority of the members of the Board, the ARC'Smembers shall receive no compensation for services rendered, other than reimbursementfor expenses incurred by them in performing their duties.

8.6. . Ifispection of Work. The ARC or its duly authorid representative may inspect m y work for which approval of plans i s required under this

17

Article Wl[("Work"). The right to inspect includes the right to require any Owner to take such action as may be necessary to remedy any noncompliance with the ARGapprovsd plans for the Work or with the requirements of this Master Declaration ("N~ncomplimce'').
8.6.1. Time Limit. The ARC'Sright to inspect the Work and notifythe responsible Owner of any Noncompliance shall terminate sixty (60) days after the Work has b m comp1eted and the ARC has receivd written notice from the Owner that the Work has been completed. If the ARC fails to send a notice of Noncompliance to an Owner before this time limit expires, the Work shall be deemed to comp1y with the

approved plans.
8.6.2. Remedy. If an Owner fails to remedy m y Noncomplimce within sixty (6U)days h m the date of notificationfrom the ARC, the ARC &dlnotify the Board in writing of such failure. Upon Notice a n d Hearing, the Board &dl determine whether there is a Noncompliance a d , if so, the natwe thereofand the estimated cost of C O or removing the same. If a Noncompliance exists, the Owner shall remedy or m o v e the same within a period of not more thtrn forty-five (45) days from the date that notice ofthe Board ruling is given to the Owner. If the Owner does not comply with the Board ruling within that period, t h ; ~oard may Record a Notice ofNoncomp1iance (if permitted by law) and commence a kwrmit for damages or injunctive relief, as appropriate, to m e d y the Noncompliance,

Scope of Review. The ARC shall review and approve, conditionally approve or disapprove a l l plans submitted to it for any propsed comtrdon, installation or alteration solely on the basis of aesthetic considerations, ~0~1~istency with this Master DecWon, and the overall benefit or detriment which would result t o the immediate vicinity and the Properties genedy. The ARC s h d consider the aesthetic aspectsof the a r c h i t d designs, placement of buildings, .Iadsqimg, color schemes, exterior k h e s and mate& and similar features. The ARC'S approval or disapproval &dlk based solely on the considerations set forth in this Article VIH. The ARC is not responsible for reviewing, nor may its approval of any plan or design be deemed approval of, any plan or design from tbe standpoint of structural d e t y or conformmoe with building or other codes. The ARC may neither consider the impact ofviews from other Dwelling Units, Lots nor privacy right claims as factors i n reviewing, approving or disapproving any proposed landscaping, construction or other Improvement. Neither Declarant nor any Merchant Builder warrants any protected views within the Properties, and neither Deckant nor any Merchant Builder guarantees the existence or utlobstmcted continuation of any particular view from any Dwelling Unit or L o t . The ARC may not change the architectural and landscapii design of the Pmpdes, as approved by Declmt, without the prior written consent of D e c l m t for so long a s Declarant is entitled to exercise its veto right under Section 4.2.3 of this Master Declaration.
8.7.

the Board as hereinafter provided, the ARC may authorize variances from mmplimce with any ofthe olrc&cfmd provisions of this Master Declaration, including without

8.8.

Variance. Subject to the approval of a majority of the members of

limitation, restrictions upon height, size, floor area or placement of structures, or similar reshictions, when circumstances such as topography, natural obstructions, hardship, aesthetic or environmental consideration may q u i r e . Such variances must be evidenced i n writing, must be signed by a majority of the ARC, and become effective upon Recordation. No variance authorized by the ARC is eff'tive unless and until a majority of the members of the Board approves such variance, which approval or disapproval may be given i n the Board's sole and absolute discretioh. If such variances are granted, no violation of the cuvenants, conditions and restrictions contain4 in this Master Declaration shall be deemed to have occurred with respect to the matter for which the variance was granted. The granting of such a variance does not waive any of the terms and provisions of this Master D e c ~ d o for n any putpose except as to the particular p r o m and particular provision hereof covered by the variance, nor does it affect the Owner's obligation to comply with dl applicable governmental ordinances affecting theuse of his Lot and Dwelling Unit.
8.9. Pre-Approvals. Tbe ARC may authorize pre-approval of certain specified types or classes of cunstnrction activities if, i n the exercise of the ARC'S judgment, preappmval of such types or classes of hpmvements is appropriate i n carrying out the purposes of this Master Deckation,
8.10. Appeals. Except as provided in Section 8.8 above, for so long as Declarant has the right t o appoint and remove a majority of the ARC'Smembers, the ARC'Sdecisions are fd, and there is no appeal to the Board. When Deckant is no longer entitled to appoint and remove a @or@ of the ARC'Smembers, the Board may adopt policies and procedures for the appeal of ARC decisions t o the Board The Board has no obligationto adopt or implement any a p p l procedures, and in the absence of Board adoption of appeal p m e d m , a l l ARC decisions are M.

ARTICLE Tx
9.
Maintenance and Repair Obligations.

9.1. Maintenance Obligations of Owner. Each Owner shall, at the Owner's sole expense, subject to the provisions of this Master Declaration requiring ARC approval, maintain, repair, replace and restore all Improvements lmted on the Owner's Lot, as well as the laud in a neat, sanitary and attractive condition. Such maintenance responsibilities include, but are not limited to, the maintenance of the entire Dwelling Unit on the Lot, as well as any fence or wall constructed on the Lot along the Lot line abutting any Public Property. In addition, each Owner whose Lot or Unit utilizes a private W a g e system installed by Declarant or any Merchant Builder is responsible for the maintenance and repair of that portion of the system which is located on the Owner's Lot. If any Owner permits any Improvement which such Owner is responsible for maintaining, to fall into disrepair or to become unsafe, unsightiy or unattractive, or to otherwise violate this Master Declaration, the Board may seek any remedies at law or in equity which it may have. In addition, the Board may, after Notice and Hearing, enter upon such Owner's Lot or Unit to make such repairs or to perform such maintenance and

Use Restrictions. The Properties shall be held, used and enjoyed subject to the following restrictions and the exemptions of Declarant and Merchant Builders set forth in this Master Declaration.
10.

10.1. Single F d y Residence. Each Lot shall be used as a residence for a single Family and for no other purpose. An Owner may rent his Lot to a single Family provided that the Lot is rented pursuaat to a written lease or rental agreement subject to all of the provisions of this Master Declaratioa
10.2. Business or Commercial Activity. No part of the Properties may ever be used in m y way, d i r e c t l y or indirectly, for any business, commercial, mufactwing, mercantile, storage, vending or other nonresidential purposes, including

without limitation any activity for which the provider is compensated or receives any consideration, regardless of whether the activity is engaged i n full or part-time, generates or does not generate a profit, or requires or does not require a license; except D e c h t and Merchant Builders may use any portion of the Properties for a model home site and display and sales offices in accordance with Article XI1 hereof. This Section 10.2 does not preclude any ofthe above-described activities without external evidence thereof, provided that:(a) such activities are conducted in conformance with all applicable governmental o ~ c e s (b) ; the patrons or clientele of such activities do not visit the Lot or park automobiles or other vehicles within the Properties; (c) the existence or operation of such activities i s not apparent or detectable by sight, sound or smeU from outside the boundaries of the h t ; (d) no such activity incmses the Master Asmiation's liability or d t y insurance obligation or premium; and (e) such activities are consistent with the residentid character of the Properties and conform with the provisions

of this Master Declaration.

10.3. Nuisances, No noxious or offensive activities may be carried on upon the Properties or on any public street abutting o r visible h r n the Properties including, but not limited to, the installation of excessively bright or coiorful i ~ ~ on the exterior ofthe Dwelling Unit. No exterior horns, whistles, bells or other sound devices, except security devices used exclusively to protect the security of a DwKing Unit and its contents, may be placsd ox used on any Lot; provided, however, that such security devices shall automatidy reset within f i n (1 5) minutes after the sounding of the alarm. Noisy, unsightly, unusually paintedor smoky vehicles, large power equipment and large power tools (excluding lawn mowers and other equipment u t i W in connection with ordinary landscape maintenance), or items which may unreasonably interfere with telephone, television or radio reception to any Lot, and objects which create or emit loud noises or noxious odors may not be located, used or placed in the Properties or on any public street abutting the Properties, or exposed to the view of other Owners without the B o d s prior written approval in its sole and absolute discretion. The Board is entitled t o determine if any noise, odor, or activity producing such noise or odor constitutes a nuisance. No Owner may (a) permit or cause mything to be done or kept on the Properties or on any public street abutting the Properties which may (i)increase the rate of insurance i n the Properties, (ii) result in the cancellation of such

insurance, or (iii) obstruct or interfere with fhe rights of other Owners, or (b) commit o r permit any nuisance thereon or violate any Iaw. Each Owner shall comply with all requirements of the local or state health authorities and with all other apphble governmental o r d i c e s regarding occupancy and use of a Dwelling Unit. Each Owner is accountable to the Master Assaciation and other Owners for the conduct and behavior of persons residing i n or visiting his Lot. Any damage to the property of another Owner caused by such persons shall be repaired a t the sole expense of the Owner of the b t where such persons are residing or visiting.
10.4. Signs. Subject to Civil Code Sections 712 and 713, no sign, poster, bilillboard, Moon advextising device or other display of my kind shall k displayed witbin the Properties o r on any public street within or abutting the Properties except for the following signs, so long as they comply with applicable City o d i c e s :

signs (regardless of size or configuration)used by Declamnt in connection with the sale, construction, alteration or development of the Properties and the Annexable Territory o r sale; lease or other disposition of Lots in the Properties or the Annexable Territory,
(a)

entry monuments, community idw~cation signs, or traffic @) or puking control signs maintained by the Master Association,
- identification sign for each Lot

(c)

one (1) nameplate o r similar Owner m e or address which complies with ARC rules;

services pm-

one (1) sign for a Lot advis'ig of the existence of security (d) a h t which complies with ARC rules;

one (1) sign which may be displayed on each Lot (e) advertihg the Lot for d e or lease; provided that such for sale or lease signs comply with the following requirements:
the sign is not larger than eighteen inches (i) (1gn) by thirt).inches (30") i n size; the sign is attached to the ground by a {ii) conventional, single vertical stake which does n o t exceed two hhes (2") by three inches (3"') in diameter (i-e.posts, pillars, frames or similar arrangements are prohibited);

(iii) the top of the sign is not more than three fset (3') in height above the ground level;
the A R C and

(iv)
(v)

the sign is of a color and wle authorizedby

ARC.

other signs or displays authorizedby the

22

10.5. Paxking and Vehicular Restrictions.

10.5.1. Authorized Vehicles. The following vehicles are Authorized Vehicles: standard passenger vehicles, inciuding without limitation automobiles, passenger vans designed to accommodate ten (1 0) or fewer people, motorcycles and pick-up trucks havhg a rnanufachuer's rating or payload capacity of one (1) ton or less. Authorized Vehicles may be parked i n any portion of the Properties intended for parking of motorized vehicles; provided, however, that no Owner may (a) park his or her vehicle i n a manner which either d c t s the passage of pedestrians or vehicles over streets or sidewalks within the Properties, or extends beyond the limits of the space where the vehicle is parked or (b) charge a fee for parkhg any motorized vehicles within the Properties.

10.5.2. Prohibited Vehicles. The following vehic1es are Prohibited Vehicles: li) recreational vehicles (e.g., motorhomes, travel trailers, camper vans, boats, eto.), (ii) Gmmercial-type vehicles ( e g . , stakebed trucks, tank trucks, dump m c k s , step vans, concrete trucks, limousines, etc.), (iii) buses or vans designed to accommodate more than ten (10) people, (iv) vehicles having more than two (2) d e s , (v) trailers, inoperable vehicles or parts of vehicles, (vi) aircraft,other similar vehicles or any vehicle or vehicular equipment deemed a nuisance by the Board. Prohibited Vehicles may not be parked, stored or kept on any public or private street within, adjacent to o r visible h m the Properties except for brief periods for loading, unloading, making deliveries o r emergency repairs; provided, however, that recreational vehicles, motor homes and trailers may be parked for up to forty-eight (48) hours, Prohibited Vehicles may only l x parked within an Owner's fully enclosed garage with the door closed so long as their presence on the Properties does not otherwise violate the provisions of this Master Declaration. 10.5.3. General R ~ c t i o n s .Subject to the restriction on Prohibited Vehicles, all vehicles owned or operated by or witbin the control of an Owner or a resident of an Owner's Lot and kept within the Properties must be parked in the garage of that Owner to the extent of the space available; provided that each Owner shall ensure that any such garage will at dl times~accommodate at least one (1) Authorized Vehicle. No repair, m a i n t e n a n c e or restoration of any vehicle may be conductal on the hoperties except within an enclosed garage when the garage door is closed,provided such. activity is not undertaken as a business, and provided that such activity may be prohibited entirely by the Board if the Board determines that it constitutes a nuisance. 10.5.4. Parking Regulations. The Board may enforce dl parking and vehicle use regulations applicable to the Properties, including removing violating vehicles b m the Properties pursuant to California Vehicle Code Section 22658.2 or otha applicable ordinances or statutes. There shall be no blocking of the fire access lanes, as M e r provided in Section 9.2 of this Master Declaration. Zf the Board fails to enforce any of the parking or vehicle u s u s e regulations, the City may enforce such regulations in accordam with applicable laws and ordinances.

10.6. Animal Restrictions. No animals, fowl, reptiles, poultry, fish or insects ofany kind ("animals") may be raised, bred or kept on the Properties, except that dogs, cats,fish, birds and other usual household pets may be kept on Lots,provided that they are not kept, bred or maintainsdfor commercial purposes, not in unreasonable quantities nor in violation of any applicable local ordinance, nor in violation of the

Restrictions. As used i n this Master Declaration, "unreasonablequantities"o r d i d y means not more than two (2) pets per household; provided, however, that the Board m y determine that a reasonable number in any instance may be more or less. The Master Association, acting through the Board, may Iimit the size of pets and may prohibit mahmuce of any animal which, i n the Board's opinion, constitutes a nuisance and danger to any other Owner or any tenants, invitees, or guests of Owner. A n i d klonging to Owners, occupants or their licensees, tenants or invites within the Properties must be either kept within an enclosure or on a leash held by a person capable of contFo1Fing the animal. Any Owner shall b liable to each and all remaking Omen, their fadies, guests, tenants and invitees, for any unreasonablenoise or damage to pemn or property caused by any aaimals brought or kept upon the Properties by such h e r or by such h e r ' s family, tenants or guests. Each Owner Wl clean up after such Owner's mbds which Rave used any poxtion of the Properties or public street abutting or visible b m the Properties.
10.7. Trash and Unsightly Items. No trash may b e kept or permitted upon the Properties or on any public street abutting or visible from the Properties, e x ~ p t & sanitary c&ahers located appropriate areas screened from view, sod no odor may be permitted to arise therefrom so as to render the Properties or any portion thereof unsanitary, unsightly, offensive or detrimental to any other property i n the vicinity thereof o r to its occupants. Such containersmay be exposed to the view ofneighboring h t s only when set out for a reasonable period of time (not to ex& twelve (12) hours) bfore and after scheduld trash collection hours. No exterior fires are pmitted, except barbecue h s contained within receptacles therefor and fire pits in.enclosed areas and designed in such a manner that they do not create a fire hazard. No clothing, household fabrics or other unsightly articlesmay be hung, dried or aired on or over any Lot. No plants or seeds infected with noxious insects or plant diseases may be brought upon, grown or maintainsdupon the Properties.
10.8. Temporary Buildings. No outbuildimg, tent, shack, shed o r other tempomy building o r Improvement may be placed upon any portion of the Properties either temporarily o r permanently, without the prior written consent of the ARC. NO garage, v r t , ttaiIer, camper, motor home, recreation vebicle or other vehicle m y be wsed as a residence i n the Properties, either temporarily or pemanently.

Outside Installations. No projections ofany type may be placed or e t t e d to remain h v e the roofof my b u i l d i within the Properties, except one or &rcchimneys and vent stacks origbalG installed, if at dl, by &larant or by a Merchant Builder, or as otherwise approved by the ARC. No basketball bakboard or other fixed sports apparatus may be wmtmcted or maintained in the Properties without the ARC'Sprior approval. Tbe Board may authorize and regulate portable basketball stands or hoops and 0 t h portable sports equipment in the Rules and Regulations. No
10.9.

fence or wall may be erected, altered or maintained on any Lot except with the ARC'S prior approval. No patio cover, wiring, or air conditioning fixture, water softeners, or other devices may be W e d on the exterior of a Dwelling Unit or be ailowed to protrude h u g h the walls or roof of the Dwelling Unit (with the exception of those items W I e d dwing the original constsuction of the Dwelling Unit) unless the ARC'Sprior written approval is obtained. No grills or bars may be installed on the windows of the Dwellimg Unit unless the ARC'S prior written approval is obtained.
10.10. Antennae. Owners are prohibited from installing any antennae on the exterior of a DweIIing Unit for any purpose, except for an "AuthorizedAntenna" An "AuthorizedAntennanmay be installed so long as the proposed location for such . . . installation ensures t h a tthe visibility of the Authorized Antenna i s nmmmd with respect t o other Owners. 'l%e ARC,using its sole good faith discretion, may require that the placement o f any Authorized Antenna be changed so long as the new location identified by ARC does not (I) unreasonably delay, prevent or substantially increase the cost ofmaintenance or use of an Authorized h t e m a , or (2) preclude reception of an acceptable quality signal. The ARC may prohibit tbe installation of an Authorized Antenaa if the installation, location or maintenance of such Authorized Antenna affects the safety of any Person.

An "AuthoWAxl#mmnmeans 0 )an antema that is desigaed to receive direct broadcast satellite &ce, including dim-to-h~me satellite b c e , that is one meter or less in diameter and is screened from view h m the ground but i s in no event more than
s designed t o receive video p m p m i n g four (4) feet above the mf,(ii) antenna that i service, including multichannel multipoint distribution service, instructional television ~ edd c e , and local multipoint distribution service, that is one meter or less in diameter or diagonal measurement and is screened from view from the g o d but is in no event more tban four (4) feet above the roof, or (ii)an antema that is designed to receive television broadcast signals, that is one meter or less i n diameter or diagonal measurement and is screened fmm view h m the ground but is in no event more than four (4) feet above the mf.

The Board may adopt additional mhictions on installation or use of an Authorized Antenna on an Owner's Dwelling Unit as a part of the Master Association's Rules and Regulations so long as such restrictions do not (1) unreasonably delay, prevent or substantially increase the cost of installation.,maintenance or use of an Authorized Antenma, or (2) preclude reception of an acceptable quality signal, or (3) violate applicable law.

The Board also has the powq to (i) prohibit an Owner from installing an Authorized Antenna on property which such Owner does not own or is not entitled to exclusively use under the Restrictions, or (ii) allow an Owner to install an antenna other tfiatl an Authorized Antenna subject to applicable a r c h i t s c ~ standards and review and approval by the ARC,
10.11. Drilling. No oil drilling, oil, gas or mineral development operations, oil rehing, geothermal exploration or development, quarrying or mining

operations of any kind may be conducted upon the Properties, nor are oil wells, tanks, tunnels or m i n d excavations or shafts permitted upon the surface of any Lot or within five hundred feet (500') below the surface of the Properties.
10.12. Further Subdivision. Except as otherwise provided herein, no Owner may further partition or subdivide his h t or any portion thereof, including without limitation any division of such Owner's Lot into time-share estates or time-share uses. This provision does not limit the right of an Owner to (a) rent or lease his entire Lot by means of a written lease or rental agreement subject to this Master Declaration; (b) sell such Ownds Lot; or (c) transfer or sell any Lot to more than one Person to l x held by them as tenants-in-common, joint tenants, tenants by the entirety or as community property. Any failure by the lessee of such Lot to comply with the Restrictions comtihrtes a default under the lease or rental agreement.
10.13. Drainage. The Owner, by accepting a grant deed to Phase 1 of the Properties, acknowledges and understands that Phase 1 of the Properties is part of a master drainage plan for Phase 1 and the other Properties, No one may interfere with or alter the rain gutters, downspouts o r *age systems originally W e d by Deckant or the Mmhamt Builders, alter the g&hg of any portion of Phase 1, or otherwise d t e r or interfere with the established drainage pattern over m y Lot unless an adequate altemtive provision is made for proper drainage with the ARC'Sprior written approval. For the purpose hereof, "establiihed"drainage means the drainage pattern and drainage hpmvernents which exist a t the time tbat the Lot is conveyed to the Owner by Declarant or Merchant Builder.

'

Each Owner, by accepting a grant deed to his Lot, acknowledges m d understands tha in connection with the developmentof the Properties, Declarant or a Merchant Builder may have installed one or more "subdmins" h e a t h the surface of such Owner's Lot. The subdrab d dl appurtenant improvements constnrctedor installed by D e c h t or a Merchant Builder ("Drainage Improvementsn),if any, provide for subterranean drainage of water fmm a n d to various portions of the Properties. To ensure adequate drainage within tbe Properties, it is essential that the D d g e Improvements, if any, not be mdif~ed, removed or blocked without having first made dkrmtive drainage arrangements. Therefore, no Owner may alter, modify, remove or replace any Drabge fmprovements located within such Ownefs I;ot without receiving prior written approval from the ARC in accordance with Article VXI hereof. In conuection with obtaining such qpmval, the Owner must submit a plan to the ARC for alternative drainage acceptable to the ARC. mere shall be no violation ofthe drainage requirements of the applicable Local Governmental Agency, notwithstanding any approval by the ARC.
10.14. Water Supply Systems. No individual water supply system, sewage disposal. system or water softener system is permitted on any h t unless such system is designed, loated, constructed and equipped in accordance with the requirements, standards and recommendations of m y appiicable Fxlcal Governmental Agency.

10.15. Inside Installations. No window in any Dwelling Unit may be partially or completely covered, inside or outside, with aluminum foil, newspaper, paint, ;eflec& tint or any other material the ARC deems inappropriate for such use; provided, however, that an Owner may use plain clean white sheets to cover windows for a period not to exceed six (6) months after the Close of Escrow pending the installation of drapes, curhim, shutters or other appropriate interior window coverings.

10.16. Views. There are no views in the Properties which are protected to any extent by this Master Declaration, and no Ownex who becomes subjsct to the t e r m hereof shall thereby obtain any vim rights whatsoever. Notwithstanding any other provision of any Declaration of Annexation or Supplemental Declaration recorded

pursuant to Section 1 5 4 of this Mas#erDeclaration, each Owner and the Master Association, by accepting a deed to a Lot, acknowledges that any construction or installation by Deckwant or a Merchant Builder or by other Owners following ARC approval as provided in Article VIZI hereof may impair the view of such Owner, and each Owner and the Master Association on behalf of the Members hereby consent to such impairment.
10.17. Solar E n w Systems, Each Owner may install a solar energy system on his Lot which serves his Dwellkg U n i t , so long as (a) the design and location of the solar energy system meet the requirements of d applicable governmental o ~ c e and s the applicable Lmal Governmental Agencies, and (b) said design and location receive the prior written approval of the ARC.

Installation of Front Y a r d Landscaping. In each and every case where a Merchant Builder does not instail landscaping for the Owner, each Owner shall complete the installation of landscaping on the front yard of such Owner's Lot in accordance with a plan approved by the ARC within six (6) months after the Close of Escrow. Each Owner shall obtain all permits necessary and shall comply with all requirements of the applicable Lmal Governmental Agency, In no event shall this provision constitute a waiver of any obligation of a Merchant Builder to Decl-t to install such frontyard landscaping.
10.18.

10,19. Rights of Disabled. Subject to the provisions of Article VIII hereof, each Owner may modify his Dwelling U t and the route over the Lut lading to the front door o f his Dwelling Unit, at his sole expense, i n order to facilitate access t o his Dwelling Unit by v n s who are bhd, visually impaired, deaf or physically disabled, o r to dter conditions which could be hamdous to such persons, in accordance w i t h any applicable law or ordinance.
10.20. Post Tension Concrete Slab System. By acceptance of a deed to a Lot, each Owner aclmowledges and understands that due to varying soil conditions, some Dwelling Units have been constmcted using a post tension concrete slab system ("S~stem'~), which involves placing a grid of steel cables under high tension in the concrete slab foundation h e a t h each Dwelliig Unit. Any attempt to modify, alter or otherwise tamper with the foundation (for example, saw cutting, drilling or installing a submanean safe) is very hamdous and might result i n serious injury or damage. By

a c ~ e p taid ~ d to a Lot that has been cmskuctsd w i t h the S ystern, eacb Owner hereby specifically cuvemts and agrees that the Owner:

(a)

Shall not cut into or otherwise tamper with the System;

fb) Shall not howingly permit or allow any other Perm to cut hto or &mm with the System so long as such Owner owns my i n in the Dwelling Unit;
y tenant or (c) Shall disklose the existence oftbe System to m ksee of the Dwelling Unit; and

(d) Shall h h m i f y and hold Declarant, snd its respective employees, contractors and agents, harmless from and against any and all ~b, damages, losses OX orher liability (including attorneys' fees) &sing from ?he modificationor alteration thereof.

11.1. l ~ c Obligations e of Owners. Each Owner is responsible for k u h g his persona].properly and all other property - - and Improvements within his ~ ~ 1 lU &i iEachh&er is also respowblefor mr~&~ublic liability inswan= i n the amount such Owner deems desirable to cover such Owflds individual liability for damage to person or property occuniog inside such Owner's D w e K i Unit or e&wbere upon such Ownds Lot Such policies shall not adversely &ect or W s h my liability under any h w a n ~ obtained e by or on bhsifof the Master Association, and duggate copies of such 0 t h policies shall be depositsd w i t h the Board upon the Board's request. If any loss intended to be covered by imumm d e d by or on behalf of the Master Asswkdion owam and the p c d s payable @ereunderare redud due to insurance wried by m y Owner, such Owner shall assign the& p of such insurance t o the Master Assmidon, t o the e x t e n t ofsuch reduction, fox application by the Board to the m e purpes as the reduced proceeds are to be applied.
11.2. Liability and Other Insurance. The Master Association shall obtain comprehensive public liability inswan* including medical payments and malicious rnischiet in such limits as it deems desirable, ins& a g e liability for bodily injury, death and proper@damage &sing from the Master Association's activities including, if obtainable, a cross-liability endorsement insuring each insured against liabidity to each other insured. The Board sball review all innuance policies at least annually and i n the limits in its discretion. The Board moly also obtain such emrs and omissions insurance, indemnity bonds, fidelity bonds and otber insurance as it deems advisable, insuring the Board, the Master Association's officers and the Manager against any liability for any act o r omission h q h g out the'i obligations hereunder, or d h g from their membership on the B o d or on any committee thereof. However, fidelity bond coverage which xzames the W&.r Association as an obligee must k obtained by o r on khetlf of the Master Association for any person or entity handling the G e n d

Operating Funds, includimg, but not limited to, Master Association officers, directors, trustees, employees and agents and Manager employees, whether or not such persons are compensated for their services, in an mount not Iess than the estimated maximum of funds in the Master Association's or Manager's custody during the term of each bond. The aggregate amount of such bonds may not be less than one-fourth (114) of the Annual Assessments on all Lots i n the Properties. In addition, the Master Association shall continuously maintain in effect such liabiiity insurance and fidelity bond coverage meeting the quiremeats for planned unit developments established by FNMA, GNMA and FHLMC, so long as any of them is a Mortgagee or an Owner of a Lot i n the Properties, except t o the extent such coverage is not reasonably available or has been waived in writing by FNMA, GNMA and FHLMC, as applicable. 11.3. Notice of Expiration Requirements. If available, each insurance policy the Master Association maintains must contain a provision 'that said policy may not be aceled, terminated, materially modified or dowed to expire by its terms, without,ten(-10) days' prior written notice to the Board-andDeclarant and to each Owner and Beneficiary, insum and guarantor of a f b t Mortgage who has f i l e da written request with the carrier for such notice, and every other Person in interest who requests such notice of the insurer.

ARTICLE m

12. %&ts of Mortgagees. Notwithtanding any other provision of this Master Declaration, no amendment or violation of the Declaration defeats or renders invalidthe rights of the Beneficiary under any Deed of Trust upon one (1) or more Lots made in good faith and for value, provided that after the foreclosure of any such Deed of Trust such ht(s) will remain subject to this Master Declaration. For purposes of this Master Mortgage"meam a Mortgage with first priority over other Mortgages Declaration, o r Deeds of Trust on a Lot, and "firstMortgagee"means the Beneficiary of a first Mortgage. For purposes of my p d s i o of ~ the Restrictions which requixe the vote or approval of a specified pemntage of firstMortgagees, such vote or approval is determined based upon one (1) vote for each Lot encumbered by each such f h t Mortgage. Tn order to induce VA, FHA, FELMC, GNMA and FNMA t o participate in the fmmcing of the sde of Lots, the following provisions are added hereto (and to the extent these added provisions conflict with any other provisions ofthe Restrictions, these added provisions conlml):
12.1. Notice. Each Beneficiary, insurer and guarantor of a first Mortgage encumbering one or more Lots, upon filing a written request for notification with the Board, is entitled to written notificationfrom the Master Association of:
12.1.1 . Loss. - Any condemnation or casualty loss which affects either s materialportion of the Properties or the Logs) securing the respective first Mortgage. 12.1.2. Delinquency. Any delinquency of sixty (60)days or more in tbe performance of any obligation under the Restrictions, including without

limitation the payment of Ann& Assessments, Special Assessments or charges owed by the Owner@)of .the Lot@)securing the respective first Mortgage, which notice each Owner hereby consents to and authorizes.
12.1-3. Insurance. A lapse, mce1lation,o r material rnodif~cation of d y policy of h m a n c e o r fidelity bond maintained by the Master Associatioa

12*2, Right bf First Refusal. Each Owner, including each first Mortgagee of a Mortgage encumbering m y Lot which obtains title to such Lot pursuant to the remedies provided in such Mortgage, or by forecllosure of such Mortgage, or by deed or assignment in Iieu of foreclosure, shall be exempt from any "rightof hrst ~ f u s a i " created or purported t o be created by the Restrictions.
12.3. Limited Assessment Exemption Each fmt Mortgagee of a first Mortgage encumbering - any - 1;ot which obtains title to such Lot pursuant to the remedies m such Mortgage or by fo~losure of such ~ o r t ~ a shall ~ e take i title to such Lot fke and clear of any clainasfor unpaid Annual A s s e s s m e , Special Assessments or charges against such Lot which accrued prior to the time such Mortgagee acquires title to such Lot in accordancewith Section 7.7 of this Master Declaration.
12.4. Financial Records. All Beneficiaries, insurers and guarantors of first Mortgages, upon written request to the Master Association, shall have the right to:

12.4.1. Examination of Boob. Examine c m n t copies of the Master Ass~chtion~s bola, r m &and financial statements and the Restrictions during

p o d business hours.
meetings of o w n e r s .

12.4.2. Notice of Meetings. h i v e written notice of all

12.4.3. RepresenWivt. Designate in writing a representative ,who sbalI be authorizedt o attend all meetings of Owners.

12.5, Agitements with Agencies. The Board may enter i n t o such contracts or e n & on behalf of the Master Association as are required in order to satisfy the gui%ehes of VA, FHA, IFHLMC, FNMA, GNMA or any &lar entity, SO as to allow for the purchase, insurance or guaranty, as the case m y be, by such entities of fmt Mortgages encumbering h t s with Dwelling Units thereon. Ehch Owner hereby agrees that it will benefit the Master Assocbtion and its M m k , as a class of potential

Mortgage borrowers and potential sellers of their Lots, if such agencies approve the Properties as a q u a l i m subdivision under their respective policies, rules and reguhtions. Each Owner hereby authorizes his Mortgagees t o knish information to the Board concerning the status of any Mortgage enmbering a L o t .

ARTICLE XIII

13.

Declarant and Merchant Builder Rights and Exemptions.

13.1. Interests of Dsclarant and Merchant Builders. Phase 1 is a portion of a larger parcel of land which Dsclarant is developing into a master plaxuied comunity. Deckant, in cooperationwith the City, bas created a comprehensive plan for the development of the ]Properties which includes master-planning objectives which have been formulated for the common good and preservation of property values within the community. Declarant and Merchant Builders intend to construct Dwelling Units and further improve all of the Lots in the Properties. The completion of the work by Declarant and Merchant Builders, and the sale and resale of Lots in the Properties, is essential to the establishment and welfare ofthe Properties as a quality residential community. Each Owner of a Lot which i s part of the Properties scknowledgei by acceptance of a deed o r other conveyance therefor, whethei or not it shall be so expressed in any 'suchdeed or other instrument, that Declarant and Merchant Builders have substantial interests i n assuring compliance with, and ,enforcementof, the covenants, conditions, restrictions and resewations contained in this Master Declaration atld m y amendments thereto and any-Noticesof Addition and Supplemental Master Declarations Recorded pursuant to this M a s t e r Declaration Notwithstanding any other provisions of the Restrictions, until the earlier to occur of (i) last Close of Escrow for the sale of a Lot i n a Phase of Development following annexatioiof all of the Amexable Territory, or (ii) the last day of the Marketing Period, the following actions, before being undertaken by the Members or the Master Association, must fwst be approved in writing by m h m t :
requiring the approval of J3eclarant pursuant to this Master Declaration, including without 1itatihall amendments to this Master Declaration, and any amendment or action requiring the approval of first Mortgagees pursuant to this Master Declaration. The Master Association must provide Declaraat with a l l notices and other documents to which a Beneficiary is entitled pwmmt to this Master Declaration, and D e c h t shall k furnished such notices and other documents without the necessity of a written request.

1 3 1 . Specified Approvals. Any amendment or action

13.1.2. Annexation. The annexation t o the Properties ofred property other than the Amexable Territory pursuant to Section 15.1.
13.1.3. ARC Rules. The adoption of and any supplement or amendment to the rules,guidelines or standards of the ARC, including any preappmval authorizationpursuant to Article WII of this Mrtster Declaration.

13.2. Exemptions. Nothing i n the Restrictions limits and no Owner or the Master Asmiation will M e r e with the right of D e c l h t or any Merchant Builder (with the consent of DecIarant) to subdivide and resubdivide any portion of the Properties or with the right of Dedarant and Merchant Builders, either directly or through their respective agents and xeptes~tatives, to sell, resell, rent or rerent any portion of the Properties, or the right of Declmt or a Merchant Builder to complete excavation,

gradhg, com!mtion of Improvements or other deveIopment activities to and on m y portion of the Properties owned by Declarant or a Merchant Builder, as applicable, or to alter the foregoing and the conitruction plans and designs, or to construct such additional Improvements as Declarant o r a Merchant Builder deems advisable i n the course of developing the Properties so long as any Lot in the properties oi. any portion of the Annexable Territory is owned by Ddaant or a Merchant Builder, These rights include, but are not limitedto, carrying on by Declmt, the Merchant BuiIders and their respective agents and representatives of such grading work as may be approved by the Governmental Agency havingjurisdiction, and erecting, constructing and m a i n t u g on the Properties such structures, signs and displays reasonably necessary for the conduct of the business of completing the work and disposing of the hopertiff and the Annexable Territory by sale, lease or othcmise. Esch Owner, by accepting a to a Lot,acknowledges that any ~ ~ c t i o ortinstahtion l by Declarant or a M e r a t Builder may impair the view of such Owner, and each Owner m w t s to such

i m p h e n t . Dechmt and Merchant Builders are exempt h m &y requirement to obtain ARC approval, ots further provided in Section 8.2 of this Master I)ecWofl.

This Master Declaration does not limit the right of k l m t o r a Merchant Builder, at any time prior to quisition oftitle to a Lot by a purchaser h m Declmaat or a Merchant Builder, to establish on that Lot, additional Licenses, easements, reservations and rights+f-way to itself, to utility companies, o r to others as reasonably necessary to the proper development and disposal ofthe Propexties and AntlexabIe Territory. Declarant and Merchant Builders may u s e any structures or vehicles owfled, res@vely, by Declarant o r Merchant Bllilders in the P X O ~ ~ as~ model E S home complexes, or estate sales or leasing offiw; provided that such uses within the Properties shall tembk on the last Close of Escrow for the sale of a Lot in a P b of Developmmt, at which time W a r a n t or M&t Buildas, as the case may b, shall restore their respective struches to their previous appearance, All or any portion of the rights of Declaraxlt or a Merchant Builder, as applicable, hmunder and elsewhere in these Restrictions may be assigned by D e c W or such Merchant Builder (with D e c h t ' ~ consent), as applicable,to any successor in i n to any portion of D e c h t ' s or Merchant Buildet's interest in any portion of the PK,@es or t h e hexable Territory (including, witbout limitation, to any Mcbant Builder) by an express written ass-nt *ch specifies the rights of Declarant or such Merchant Builder so assigned. Notwithstanding any other provision of this Master Dsclmtion, for so long as Declarmt owns my portion of the Pmpertiw or the Annexable Territory, B c 1 m t ' s prior written approval is required before any amendment to Section 4.1, Section 4.2.3, Article x!V or any other provision affecting t ? ~rights e o r exemptions of Declarant hereunder, is effdve.
133, Dedmmt Representative. Until the later t o occur ofthe date OII d c h I ) s c h t (i) no longer o m a Lot in the Properties or {ii) cannot unilaterally anmx property to the Properties, the Master Association shall provide Declarmt with written notice of ail meetings of the Board as if D e c h t were an Owner and Dedarant shall be entitled, without obligation, to have a representative present at dl such Board meetings C'Declmt's Representative"). The D6clmt's Representative may be present

in an advisory capacity only and shall not be a Board member or have any right to vote
on matters coming before the Board.

14.

General Provisions.

14.1. Enforcement of Restrictions. AU disputes arising under this Master Declaration, other than those described in Section 14.12, shall k e resolved as follows:

14.1.1, Violations Identified by the Master Association If the Board determines that there is a violation of the Restrictions, or the ARC determines that an Improvement which is the maintenance responsibility of an Owner needs installation, maintenance, repair, restoration or painting, then the Board shall give written notice to
the responsible Owner identifying (i) the condition or violation complained of, and (ii) the length of time the Owoer has t o remedy the violation including, if applicable, the length of time the Owner has to submit plans to the ARC and the length of time the Owner has to complete the work proposed in the p h submitted t o the ARC.

Xf an Owner does not perform such corrective action as is required by the Board and the ARC witbin the allotted time, the Board, after Notice and Hearing, may remedy such condition or violation cumplained of, and the cost thereof s h d be charged t o the Owner as a Special Assessment.
If the violation involves nonpayment of any type of any Annual Assessment or Special Assessment, then the Board may collect such delinquent, assessment pursuant t o the p d w e s set forth in Article W.
14.1.2. Violations Identified by an Owner. If an Owner alleges that anofher Owner, his family, guests or tenants, i s violating the Restrictions (other than nonpayment of my type of &issmart), the &plaining &er must fmt submit the matter to the Board for Notice and Hearing before the complainingOwner m y resort to

alternative.disputeresolution or litigation for relief.

14.1.3. Alkmative Dispute Resolution. If a dispute exists between or among (i) Dsclarant, any Merchant Builder, general contractors or brokers, or their agents or employees on the one hand, and any Owner(s) or the Master Association on the other hand, or (ii) any Owner and mother Owner, or (iii) the M a s t e r Association and any Owner, including any claim based on contract, tort, or statute, arising out of or relating to the rights or duties of the parties under the Restrictions (excluding disputes relating to the payment of any type of Assessments), and i fthe disputing parties agrm, the matter shall be submitted to alternative dispute resolution so long as the requirements of Sections 14.1.1 and 14.1.2 above have been met, if they are applicable. Nothing herein affects any dispute between Merchant Builders or between D e c l m t and a Merchant Builder.

14.1.4. L e d Proceedings, Failure to comply with any of the terms oftbe Restrictions by an Owner, his family, msts, - empIoyees, invitees or tenank, is grounds for relief which may include, & h i l&itatioR an action to mover S U ~ due S for damages, injunctive relief, or any comb'ition thereof,
* -

14.1-5. Limitation on Expenditures. ~ n procsgds y d v e d from any litigation or alternative dispute resolutionby the Master Association must be applied toward the cost ofcuring the problem and the cost of litigation.

14.1.6. Additional Remedies. The Board may dopt a schedule of reasonable fines or penalties which, in its reasonablediscretion, it may assess &gainst an Owner for the ftti1ure of such Owner, or ofa resident of or visitor to such Ownds Lot, to comply with the W c t i o n s . Such fines or pndties may only be assessed after Notice and H d g . After Notice and Hecuing, the Board may &t the ofices of the Master Association to Record a notice of noncompliance (if pemitted by law) against the Lot or Lots owned by any Member of the Master Associationwho has violated any provision of this Master DscIaration, The m t i shall ~ include a legal description of the Lot and shall specify the provision of the Declaration that was violated,the violation c~mfnitted, and the steps requiredto remedy the noncompliance. Once the nonwmpli~tlce is remedied o r the noncomplying Owner has taken such other steps m n a b l y required by the Board, the Board shall direct the o f f i mof the Master Associationto record a notice that the mnwmpliance has been remedied. 14.1.7, NQWaiver. Fdm to enforce m y provision hersof does not waive the right to enforce that provision, o r any &her provision hereof.
14.1.8. IRighttoMorce~Dechrant,theBoardoranyOwner (not at tbe time in default heretmder) may enforce the Reslrictiom as described in this Article. Tkh Omer has a right of action against the Master Association for the Master Association's failure to comply with the Reshictions. Each remedy provided for i n this Master Declaration is cumulative and not exclusive or exhaustive.

14.1.9. Attorneys' Fees. Any judgment rendered in any action or pursuant to this Master Declaration shall include a sum for attorneys' fees in such amo&t as the court or arbitrator, as applicable, may deem reasonable, i n favor of the prevailing party, as well as the amount of any. delinquent payment, interest &em% costs of collection and costs of cowtor alternative dispute resolution, as applicable.

1 4.1.1 0. City Et&orcement Rights. All provisiw of this Master Declaration which are zoning i n nature and all maintenance requirements under t h i s Master Declaratioh, may be enforced by the City in its discretioa. 14.2. Severability. T h e provisions hereof are independent and severable, and a determination of invalidity or partial invalidity or menforceability of any one provision or poition herkof by a wwt of competent jurisdiction does not affect the validity or e n f o d i l i t y of my other provision hem

14.3. Term. This Master Declaration continues i n full force unless a Declaration of Termination satisfying the xequixements of an amendment to the Master Decimation, as set forth in Section 14.5, is Recorded.

14.4. Interpretation. This Master Declaration s h d be Liberally construed to eff'tuate its purpose of creating a uniform plan for the development of a residential community, and any violation of this Master DecIaration is a nuisance. The Article and Section headings have been inserted for convenience only, and may not be considered or referred to i n resolving questions of interpretation or c o ~ c t i o As ~ . used herein, the singular indudes the plural and the plural the singular; and the masculine, feminine and neuter each include the other, unless the context dictates otherwise. t 4.5, . T d o n and hendment.
14.5.1. Procedure. Notice of the subject matter of a proposed resolution to m e n d or terminatethis Master Declaration in reasoiiably detailed foxm shall be included in the notice of any meeting or election of the Master Association at which a propad amendment or t ~ a t i o i n s to be considered. Any resolution to amend or tambate this M a s t e r Association can only be adopted as follows: (a) if the resolution is proposed by any Owner (other than Declarant), then by the vote, in person or by proxy, or written consent of (i) Memlxrs representing not less than fiM+ne percent (5 1%) of the Master Association's total voting power residing i n Members other than Declard and (ii) k l m t until the expidon of the Marketing Perid, provided, however, that at any time prior to the last day of the Marketing Period, Declwant shall have the right t o temhate Declaranfs rights pursuant t o this Section 14.5.1(a)@) by executing and delivering to the Master Association a letter whereby Declarant relinquishes a l l of Declarant's rights pummt to this Section 14.5.1(a)@), or (b) if the resolution is p r o p s 4 by D e c l m t , then by the vote, i n person or by proxy, or written consent of Members representing not less than fifty-one ~ n(5 1%) t ofthe Master Association's t o t a l voting power residing in Members (including Declarant).

14.5.2. Mortgagee Consent. In addition to the notices and consents required by Section 14.5.1, the Beneficiaries of fiflycone percent (5 1%) of the h t Mortgages on all the'Lots i n the Properties who have quested the Master Association to notify them of proposed action requiring the consent of a specXed percentage of fmt Mortgagees must approve any amendment to this Mstster Declaration which is of a material nature, as follows:
(a) Lien Priority. Any amendment which affects or pwports to affect the validity or priority of Mortgages or the rights or protection granted t o 'Beneficiaries, insums and guarantors of first Mortgages as provided in this Master Declaration.

(b) Assessments. - Any amendment which would necessitate a Mortgagee, &er it has acquired a Lot through foreclosure, to pay more than its proportionate share of any unpaid Annual Assessments or Specid Assessments accruing after such foreclosure.

(c) Forfeitures and Taxes. Any amendment which would 01could result in a Mortgage being cancelled by forfeiture, or in a Lot not being separately assessed for tax pwpses.

( d Insurance and Condemnation. Any amendment rehthg to the insurance provisions as set out in Article X i hereof, or to tbe appfiwti~n of insurance proceeds as set out in Article X I hereof, or to the disposition of any money received in any taking under condemnation proceedings.
14.5.3.

shall require approval by the Members as provided in Section 14.5.1.

Termination. Termination of this Master Declaration

14.5.4. Notice. Each Beneficiary of a first Mor&gage on a Lot in the P ~ p r t i which e ~ receives proper written notice of a proposed amendment or tmmhtion ofthis Master k 1 d o n by cert5e.dor registered mail with a return receipt requested s h a L l be deemed to have approved the amendment o r temhdon if the Beneficiary fails to submit a responseto the notice within thirty (30) days after the Beneficiary receives the notice.
14.5.5. M a t i o n . A copy of each amendment shdl be certified by at least two ( 2 )Master Asmiation officers, and the amendment wiI1 be effective when a M c a t e o f Amendment is Recorded. The Certificate, signed and swom to by at leasttwo (2) officers ofthe Master Association that the requisite number of Owners have either voted for or consented in writing to any terminatition or amendment adopted as provided above, when Recorded, i s conclusive evidence of that h c t . Master Asmiation shall maintain in its files the m r d of all such votes or Written consents for at least four (4) years. The -ate reflecting my termhation or amendment which requires the written c o w ofany of the Beneficiaries of first Mortgages must include a certXcation that the requisite approval of such first Uortgagw has been obtained.

14.5.6. Declarant Amendments. Notwithstanding my other provisions of this Section 14.5, at any time prior to the fmt Close of b r o w in P b 1, or prior to the fmt Close ofEscrow a subsequent Phase of Development with respsot to a Supplemental Master D e c l d o n , Declarant may unilaterally amend or tamhate this Master Declaration (or a Supplemental Master Declaration, as the case m y be) by Recording a wri- instrumtint which effectsthe am~dment or termination m d is signed and achowledged by Declarant.
14.5.7. Lender and Regulatory Amendments. N o t w i ~ d W ~ g any 0 t h provisions of this Section 14.5, for so long as Declarant owns any portion of the Properties o r the Annexzible Territory, Declarant I&unilaterally amend this Master Declaration by Recording a written htmment signed by Deckant i n order to conform this Master Declaration t o the requirements of the VA,FHA,M, GNMA or FmMC or any h a 1 Governmental Agency,

14.5.8. Veto by City. The City shall have the power to veto my purported amendment or termhation of any of Sections 8.2,9.1,9.2,10.5 and 14.1.10 of this Master Declaration, No amendment or written agreement purporting to ternhate or modify m y of Sections 8.2,9.1,9.2,10.5 and 14.1.10 of this Master Declaration shall take effect until t h i @ (30) calendar days following delivery by mail, return receipt requested, of written notice thereof, to the City Director of Planning and Community Development, with a copy thereof to the City Attorney, and if no veto is exercised by the City Planning Director within thirty (30) calendar days after the receipt of such notice, such amendment or tamhation shall th& become effective.

14.6. No Public Right or Dedication Nothing contained in this Master Declaration constitutes a gift or dedication of all or any part of the Properties to the public, o r for any public use.
14.7. ConstructiveNotice and Acceptance. Every person who owns, occupies or acquires any right, title, estate or interest i n or to any Lot does hereby consent and agree, and shall be conclusively deemed to have consented and agreed, to every limitation, restriction, easement, reservation, condition and covenant contained herein, whether or not any reference to these restrictiom.is contained in the htmment by which such person acquired an interest in the Properties or m y portion thereof.

14.8. Notices. Except as othewise provided herein, notice to be given to an Owner must be in writing and may be delivered personally to the Owner. Personal delivery of such notice to one (1) or more co-owners of a Lot or to any general partner of a partnership owning a Lot constitutes delivery to all co-ownem or to the partnership, as the case may be. Personal delivery of such notice to any officer or agent for the service of process on a corporation constitutes delivery to the corporation. In lieu of the foregoing, such notice may ke delivered by regular United States mail, pastage prepaid, addressed to the Owner at the most recent address furnished by such Owner to the Master Association or,if no such address has been furnished, to the street address of such Owner's Lot. Such notice is deemed delivered three (3) business days after the time of such mailing, except for notice of a meeting of Members or of the Board, i n which case &e notice provisions ofthe Bylaws wntroI. Any notice to be given to the Master Association may be delivered personally to any member of the Board, or sent by United States mail, postage prepaid, addressed to the Master Association at such address as may be f i x e d from time to time and circulated to all Owners.

14.9.
C o d t t e e Members.

Nonliability and I n d d c a t i o n .

14.9.1. Nonliability and Indemnificationof Board, Officers and

General Rule, No Person is liable to any other Person (other than the Master Association or a party claiming hthe name of the Master Association) for injuries or d ~ a g resulting e from such Person's acts or omissions within (a)

what such person reasonably believed t o be the scope of the Person's Master Association duties ("OfficialActsn), except to the extent that such injuries or damage result h m the

Person's willful or malicious misconduct. No Person is liable to the Master Association (or to m y party chiming in the natzre of the Master Association) for injuries or damage resulting from such Person's Ofi.cial Acts, except to the extent that such injuries or damage result from such Person's gross negligence or willM or malicious misconduct. nK Master Association is not liable for damage to property ia the Properties unless m u s e dby the gross negligence of the Master Association, the Board, the Master Association's officers, the manager or the manager's staff.

Nonliaaility of Volunteer Board Members and @> office^^,. A volunteer Board member or volunteer Mastex Association officer shall not be personalty liable to any Person who suffers injury, including witbout Iimitation bodily hjury, emotional distress, wrongful death o r property dam& or loss as a result of the tortious act o r omission of the volunteer officer o r Board member if a l l ofthe folhwhg criteria me met: (i) the act or omission was pedomed within the scope of the officer's Or Board member's association duties, (ii) the act or omission was performed in good ~ t i S (ii) the act o r omissionwas nut willful, wanton or grossly negligent and (iv) the Master Association had i n effect at the time of the act or omission the policies of insurance covering the dimtors, officers and agents of the Master Association to the eaent required pumgmt to Section 11-2above.
(c) Indemnification of Master Asmiation Representatives. The Master Association has the power and the duty to i n * Board members, Master Association oEcers, ARC members. and aIi o k Master Association committee membrs for all damages and pay all e x p e k i n c d by, and satisfy m y judgment or h e levied against, m y Person as a result of any action or w n e d action against such Petson brought f>ecause of w o m c e of an Officid Act to the m e s t extent authorized by W o m i a law. Board members, Master Association officers, ARC m e m h , and all other Master Association committee members are deemed to be agents of the Master AtmcWon when they are perfomkg Official Acts for purposes of obhhiq indedcation h m the Mmkr Association purswnt to this Section. The entitlement to i n d d i c a t i o n hereunder inures to the b f i t ofthe estate,executor, adminishtor, heirs, legatees, or devisees of any petson entitled to such in&mn%don.

ZndemdZcation ofOther Agents of tbe Master (d) Assochti~n.The Master Association &the power, but not the duty, to indemnify any other Person d g as an agent of the Master Association for any damages and pay d l incurred by, and A d y any judgment or finelevied against, my Person as a result of any aation or threatened action against such Person bemuse of an Official Act as authorid by Wiornia law.
h d e d c 8 t i o n by Contract. The Master (e) Association, acting throughthe Board, also has the power, but not the duty, to with any Person to provide i n d d f i d o n beyotldthe scope of indemnification a~Eh~&ed by applicable law on such terms and subject to such d t i o a s a d the Board m y impose.

14.10. Priorities and Inconsistencies. If there are coflicts or inconsistencies between this Master Declaration and either the Articles or the Bylaws, then the provisions of this Master Declaration shall prevail. If there are any conflicts or inconsistencies between this Master Declaration and a Supplemental Declaration, a Declaration of Annexation or the Rules and Regulations, then the provisions of tbis Master Declaration shall prevail.

14.11. Mergers or Consolidations, Upon a merger or consokidationof the Master Association with another association, its properties, rights and obligations may, by operation of law, be transferred to mother &&ing or coflsolidated association or, alternatively, the properties, rights and obligations of another association may, by o p d o n of law, be added to the properties, rights and obligations of the Master Association as a surviving corporation pursuant to a merger. The d v i n g or consolidated associationmay administer and enforce the covenants, conditions and restrictions established by this Master Declaration governing the W e s , together with the covenants and restrictions established upon any other property, as one (I) plan. 14.12. Dispute Notification and Resolution Procedure @ e c b t and Merchant Builder Dkmutes1. Anv dimutes between the klaster Association tor any
-

Owners) and the ~ e e k & . o r ~ & & t Builder or an$ director, officer, pa&, employer, subcon-r or agent of the Declarant o r Merchant ~uilder~relath~ t o this Master Declaration, the use or condition of the Properties, and/or the cunstmction and installation of any Improvements located thereon s u be subject to the f0110whg provisions:

14.12.1. Notice. Any person with a claim against the D e c h t o r Merchant Builder or any dimtor, officer, partner, employer, subcontractoro r agent of either (collectively the " ~ 1 a r m tfor n purposes of this Section) shall notify the Deckant in writing ofthe claim, which shall describe the nature of the claim and the proposed remedy (the "ClaimNotice").
14.12,2. Right to Inspect and Right to Corrective Action. Within a reasonable period after receipt of the Claim Notice, which period shall not exceed sixty ( 6 . 0 )days, the Declarant and the Claimant shall meet at a mutually acceptableplace within the Properties to d i m s the claim. At such meeting or at such other mutually agreable time, Declarant and Declmt's representatives shall have fi32 access to the property that is subject to the claim for the purposes of inspecting the properly. The parties shall negotiate i n good faith in an attempt to resolve the claim. If the D e c l m t elects to take any corrective action, Declarant and Declmt's representatives and agents Ml be provided full access to the Properties to take and complete corrective action.

14.12.3. Non-BindimMediation If the parties cannot resolve the claim pursuant to the procedures described in subparagraph 14.12.2above, then, the matter shall be submitted to nonbinding mediation pursuant to the mediation pracedures ad0pted.b~ the American Arbitration Association o r any successor thereto or to my other entity offering mediation services that is acceptable to the parties. No Person shall sene

as a mediator in any dispute in which the Person has any financial or persod interest in the result of the mediation, except by the written consent of dl parties. Prior to accepting my appointment, the prospective mediator shall disclose any circumstances like1y to create a presumption of bias or prevent a prompt commencement of the mediation process. If the matter is submitted t o mediation, then the following shall apply:

W~thin ten (10) days of the selection of the mediator, each party shall Submit a brief memorandum setting forth its position with regard to the issues that need to be resolved. A party's pre-mediation memorandum may not be disclosed by the mediator to the other party without the consent ofthe party submitting the same. The mediator shall have the right to schedule a pre-mediation conference and a l l parties shall attend unless otherwise agreed T h e mediation shall be commenced witbin ten (10) h y s
folIowing the submittal-of the memoraudum and shall be concluded within fifteen (15) days from the commencement of the mediation unless the parties mutually agre to extend the mediation period. The mediation W be held in Sacmento County, Caltfornia, or such other place as is mutually acceptableto the @parties.

The mediator shall have discretion to conduct the mediation in the maxlner in which the mediator believes is most appropriate for reaching a settlement of the dispute. The mediator is authorid to conductjoint and separate meetings with tbe parties md to make oral and written recommendations for settlement. Whenever necessary,the mediator may also obtain expert advice concerning technical aspects of the dispute, providing the parties agree and assume the expexlses of obtaining suchadvice. The mediator does not have the authority 'to impose a settlement on the parlies.
Prior to the commencement ofthe mediation session, the mediator and all @es to the mediation shd execute an agreement pursuant to California Evidence Code Section 1152.S(c) or successor statute in order to exclude the use of any information, testimony, admission or evidence produced or made at or in conndon with the mdiation and any subsequent dispute resolution form, including, but not limited to, mutt proceedings or arbitration hearings. Pursuant to California Evidence Code Section 1152.5(a), the agreement shall specifically state:
(a) Except as otherwise provided in this section, evidence of anything said or ofany admission made in the course of the mediation is not admissible evidence or'mbjectto discovery, and disclosure of this evidence shall not be compelled in any civil action or proceeding in which, pursuant to law, testimony can be compelkd to be given
'

@) Except as otherwise provided in tbis section, d e ~ s the document otherwise provides, no document prepared for the purpose of, or in the course of, or p t to,the mediation, or copy fiereof, is admissible in evidence or mbj& to discovery, and disclosure of such a document shall not be compeIled, in any civil action o r proceeding in which, pursuant to law, testimony can be compelled to be

given

Persons other k i n the parties, their representatives and the mediator may attend mediation sessions only with the permission of the parties and the c o m t ofthe mediator. Confidential information diiclosed to a mediator by the parties or by witnesses ib the course of the mediation M I not be divulged by the mediator, without the consent of the disclosing party. All records, reports, or other documents received by the mediator while servring in such capacity shall be confidential. There shall be no stenographic record of the mediation process.

The expenses of witnesses for either party s M Ibe paid by the party producing such witnesses. All other expenses of the mediation, including requid traveling and other expenses of the mdator, and the expenses of any witnesses, or the cost of any proofs or expert advice produced at the direct reguest of the mediator, shall k borne equally by the parties unless they agree othamk,
14.12.4. Judicial Reference. If the parties m o t resolve the c k pursuant t o the procedures described i n Section 14.12.3 above, then prior to the cornencement of any litigation in any court of competentjurisdiction, the parties shall submit the claim to general judicial reference pursuant to Caiifomia Code of Civil Procedure Sections 6380) and 64 1-645.1 or any successor statutesthereto. T h e parties shall cooperate in good faith to enscure that a l l necessary and appropriateparties are included in the judicial reference p&g. DBclarant and any Merchant Builder shall

not be required to participate in the judicial reference proceeding unless it is satisfied that all necessary and appropriate parties will participate.
The general referee shall have the authority to try aU issues, whether of fact or law, and to report a statement of decision. The parties shdl use the procedures adopted by Judicial Arbitdon and Medidion Services/Endispute ("JAMS")for judicial reference (or any other entity offering judicial reference dispute resolution p d m s as may be mutually acceptable to the parties), provided that the foliowing rules and procedures shall apply in all cases unless the parties agree otherwise:
(a)

T h e proceedings shall be heard i n the County;

(b) The referee must be a retired judge or sn attorney with substantial experience in relevant red &ate matters;
(c) Any dispute regarding the selection of the referee shall be resolved by the entity providing the reference services or, if no entity is involved, by the court w i & appropriate jurisdiction;

(d) The referee may require one or more pre-hearing

conferences;
(e) The parties shall be entided to discovery, and the r e f m shall oversee discovery and may enforce d l discovery orders i n the same manner as any trial court judge;

If) A stenographic m x d of the hearing shall be made, provided that the record shall remain confidential except as may be necessary for post-hearing motions and any appeals;
(g) The referee's statement of decision shall contain findings of fact a n d conclusions of law to the extent applicable; and

@ The referee shall have the authority to rule on. post--hearing motions i n the same manner as a trial judge.
14.12.5. Litigation. The Master Association and each Owner the Declarant or the Mmhant Bdlder (as the case may be) without c o m P l h with the proceddescribed in subparagraphs 14.12.3 and 14.12.4 above.
nlay not ~kmmmne litigation against

14.12.6. Mkceheous. Notwithmndhg any ~ther provision herein to the contrary, i n any dispute between the Master Association and/or any Owner and the h h t or the Merchant Buildex (as the case may b e ) , each party shall bear its own attorneys fees.

.,

Any and communicati~ns by and between the parties, whether written o r oral, which are delivered by the parties or their attorneys or other representativesi n an effort to settle the matter shall b consideredco~municzttio~~s undertaken i n the course of effectinga settlement o r compromise as such dull not be admissible as an admission on the part of any party or any representative or ageat of that party to be utilized for any such purpose i n any action o r proceeding.

,of Declarant

Nothing herein shall ?xi considexed to reduce or extend any applicable statute of limitatioa This Section 14.12 shall not be mended without the written consent
14+13. Additional Provisions. Notwithstanding the provision$tontahed i n the ktrictions,the Master Association and the Owners should be aware that there may be provisions of various laws, including without limitation the feded Fair HOU& Act codifred at Title 42 United States Code, Sections 3601 et g . which , may supplement or override the Restrictions. Declarant makes representations or warranties reg* the future aforceabrlity of any portion of the Restrictions.

no

14,14. No Representations o r Warranties. No representations or warranties of my kind, express or implied, have k e n given or made by Dgclarant or by m y Merchant Builder, or by their mpctive agm&or employees in connection with Properties, or my portion thereof, its physical condition, mning, compliance with applicable laws, fitness for intendeduse, o r in connection with the subdivision, sale, operation, maintenance, cost of maintenance, taxes or regulationthereof as a plnnsd development, except as specifically and expressly set forth in this Master Declaration.

14.15. Drainage Conbol. Adequate drainage and irrigation control be utilized. The mnstmction or modification of~mproyemeats should not result

in ponding of surface drainage water. The landscape irrigation system shodd be designed to prevent excessive saturation of expansive soils. Water must drain away from the house footings and other Improvements constructedupon the Lot and obstructions such as walls shodd not ?x constructed across swales unless adequate replacement drainage Improvements have been installed or created. Planters created by walkways next to a Dwelling Unit should be lined with an impervious d a c e and shuuld contain drain inlets to drain excess water, Drainage onto adjacent Lots is not permittsd unless ~II easement has been granted over such adjacent Lot for such purpose,
14.16. Gradinq. T h e g r a d i n g a n d ~ e d e s i ~ o f a L o t s b o d d n o t b e altered by any owner or by any contracton or agents of an Omer i n the c o w of installing Improvements such as patios, planters, walls, swimming pools or spas i na manner that will redirect surface water flow toward the Dwelling Unit or onto adjacent property or that will trap water so that it ponds and floods. Drainage devices such as concrete ditches, area drain Iines and gutters should bt carefully designed and installed with professional assistance. Drainage devices installed by the Declarant o r by a Merchant Builder that are designed to serve more than one Lot, should not be altered or modified i n a manner that will redirect or obstruct the drainage through these drainage devices. Any grading and drainage modifications are subject t o applicable codes of the applicable L o 4 Governmental Agency, subject to approval by the ARC and subject t9 the terms of any other drainage easements that may be of record.
14.17. Improvements. Each Owner, by the acceptance of a deed or other conveyance of a Lot, acknowledges and agrees that neither the D e c l m t nor any Merchant Builder &dl be liable or responsible for any damage to hpruvements that have k e n constructed or modified by an Owner or that i s the result of improvements that have been comtmted or m&ed by an Owner. Improvements should not be installed, constructed or modified without the assistance of qdfi8d consultants. For example, professional soils and structural engineers should be c o d t e d to determine the existing soil conditions and such Improvements or modifications should be designed to compensate for any expansive sail witbin the Lot. 14.18. Property Lines_. The boundaries of each Xlot within the Properlies are delineated on a subdivision (tract) map, lot line adjustment, or parcel map that is in the public records and is available at the office of the County Recorder.

f 4.19. Preliminary Title Report. The p r e t i m ' i title report issued by the title company that insures the title to a Lot which is available for review, inspection and approval by any prospective purchaser as a condition to the Close of Escrow will reveal matters of h r d that, unless removed as a condition to the Close of Escrow, will continue to be effective against the Lot after the Close of Escrow. The preliminary title report describes easements and rights of Record w h i c h indude, without limitation, the

following:
14.19.1. Utility Easements. TheLots are orwillbe subjectto easemmts i n f m of utility companies for the installationand maintenance of utility lines sod faoilities that provide &vice to the Properties. The location of the vario& lines

and facilitjes are totally within the control of the respective utility companies although facilities such as electrical vaults, telephone, street lights and cable television boxes are generally located in the area behind the sidewalk
14.19.2. Mailboxes. An easement has beenor wiII be, if necessary,reserved for the instatlation, maintenance, repair and replacement of dlboxes. Mailboxes are usually located within the utility easement area adjacent to the street but the Iocatiom and configurations are conmlled by the United States Postal Service and subject to change.

14.19.3. Special Assessment or Mello-ROOS Community Facilities Districts, The Properties lie within the boundaries of S p i d Assessment Districts and Mello-Rms Cornmwity Facilities Dimicts which require the levy of a m i d tax for the purpose of paying the cost of the services or the capital improvements that have been or are being provided. The amount of the special tax and any other i n f o d o n perhhhg t o any such district can E>e obtained from the County Assessor's ofice.
14.20. Nabmas h r t . Tbe Master Association, each Merchant Builder and each Owner acknowledge &t the Properties and Annexable Territory are located adjacent to certain real pmp&y owned and operated by a non-govementd d t y , which property is currently operated as an airport (the "Airport Property"). Under the Community Plsn, airport operations on the Airprt Property are scheduled to be discontinued as of the date set forth in t h e Comuxlity Plan. The Airport Property is ~~ntaminolted with certain hazardous substances or materials as more mcularly d&bed htbat mitigation p h dated December 1996, p p d by tbe State of California Regional Water Quality Control Board (the tcRWQCB''). Any and all fixher hquirics regmd'mg this matter should b e directed to the RWQCB.

14.21. TransportationManagement Association. Each h e r understands and acknowledges that prior to the marketing of the first Lot,the Properties (and each Lot included therein) will be required to in a community-based Management Assmiafion ("TMAn) d Z i s h d b mordhaie costeffective transportation services with development phas'ing. Under the North Natomas Fim~kg~Plan adopted by the Sacramento City Council in Resolution No.94495 on A U9,1994 ~ and the North Natomas Nexw Study adopted by the Sacramento City Coun~il in Resolution No.95-619 on October 3 1, 1995, it is contempld that the I M A requirement will be satisfied by the formation of a community facilitie district encompassingthe North Natomas Planned Community, incIuding the Properties, pursuant to which each property covered by such comuaity facilities district will be subject to assessment fees which will be used to fad the transportation services called for under by TMA. Each Owner understands and agrees that the Properties (and each Lot included therein) will be covered by such mmmunity facilities district when formed.

won

14.22 Approval bi Declarant. Whenever the approval of Deolarant is h e q u i d or pewmilied under this Master Deckamtion, such approval may be given o r -withheld inDecl$xmttssole and absolute discretion,

Attorneys' Fees. In the event any action shall be instituted i n connection with this Master Declaration ( a n"Action"),the party prevailing in such action shdI be entided to recover from the other party aII of its costs of action including reasonable attorneys' f e as ~ fixed by the c o w therein.
14.23

14.24 Post-Judgment Attorneys' Fees. The prevailing party in any Action shdl be entitled, in addition to and separately h m the amounts recoverable under Section 14.23 above, to the payment by the losing party of the prevailing party's reasonable attorneys' fees, court costs and litigation expenses incurred in connection w i t h {a) any appellate review of thejudgment rendered i n such Action or of any other ding in such Action, and (b) any proceeding to enforce a judgment i n such Action. It is the intent of Dsclarant that the provisions of this Section 14.24 t x distinct and severable from the other rights of Deckant under this Master Declaration, shall survive the entry of judgment i n any Action aad shall n o t be merged into such judgment,
14.25 Captions. All qitions or titles used in this Master Declaration we intended solely for convenience of reference and shall not affect that which is set forth in apy of the term or provisions hereof.

ARTICLE XV
Annexation of Additional Property to the Properties. Additional real property may be annexed to the Properties and such additiod real property may become subject to this Master Declaration by any of the following methods:
15. 15.1. Additions by D e d m t . Declarant may add the Amexable Territory, or any portion or portions thereof, to the Properties and bring such added territory within the general plan of this Master kclamtion without the approval of the Master Association, the Board, or Memks. As each Phase is developed, Declaraut may, with respect thereto, h r d a supplemental d e d d o n ("SupplementalMaster Declarationn)which may supplement this Master Declaration with such additional covenants, conditions, restrictions, reservations and easements as Deciarant may deem appropriate for t h a tPhase.

1 5.2. Other Additions. In addition to the provisions for annexation specified i n Section 15.1 above, additional red property may be annexed to the Properties aqd brought within the generdplan of this Master Declaration upon the approval by vote or written consent of M e m b e r s entitled to exercise no less than two-thirds (u3) of the Master Association's voting power. 15.3. Rihts of Added Territory Members. Subject t o the provisions of Section 15.4, upon the Recording of a Declaration of Annexation containing the provisions as set forth in this Section, all provisions contained in this Master Declaration will apply to the real property described in such Declaration of Annexation (the "Added Territory")in the same manner as i fit were originally covered by this Master Declaration. Tbereafker,the rights, powers and rqwnsibili ties oftbe patties to this Master Declaration with respect to the Added Tenitory will be the same as with respect

to the property originally covered hereby, and the rights, powers and responsibilitim of the Owners, ~ S W S aad occupants of Lots within the Added Territory, as well property originally subject to this Master Deciaration, wifi be the same as if he Added Territory were originally covered by this Master Declaration. From and after the first day of the first month following the first Close of Escrow i n the Added Terribq, the Owners of Lots located i n the Added Territory shall s b in the payment of Annual Assessments and Special Assessments to the Master Associ&ion to meet Common Expenses of the tntire Properties as provided in Article VI hereof. Voting rights attributable to the Lots in the Added Tmitory do not vest until h u a l Assessments have commenced as to such Lots.
15.4. Declaration of Annexation. The additions authorized under Sactiom 15. Z and 15.2 must be made by Recording a Declaration of Amemtion, or 0 t h similar hstmment (which notice or &ent may contain the Supplemental Declaration, if any, affecting tach such Phase), with respect to the Added Territory ("DeclarationofAnnexationw) which will extend the general plan of this Master hdaration to such Added Territory. The Declaration of Annexation for any addition under Section 15.1 must be signed by DecZarant. TPle Dechtion of Annexation fbr m y addition under Section 15.2 must be s i p d by a t1 two (2) officers of the Master Association to certify that the requisite Member approval under Section 15.2 was obtained. The Recordation of said Declaration of Annexation effe.dmtesthe annexation of the Added Territory described thereia, and thereupon said Added Territory will ~~nstituk s part of the Properties, h m e subject to this Master Declaration and encompassed within the general plan of covenants, conditions, restrictions, reservation of easements and equitable servitudes contained herein, and become subject to the Master Association's functions, powers andjurisdiction; and the Owners of Lots in the Added Territory wilI automatically become Members. Such Declaration of Annexation may contain a Supplemental I)eclaration with such additions and modifications of the covenants, conditions, restrictions, reservation of easements andquitable servitudes contained in this Master Declaration as may be necessary to reflect .the different character, i fm y , of the Added Territory, or as Dedarant deems appropriate in the development of the Added Territory, and as are not inconsistent with the g e n d plan of this Master DecWon. In no event, howem, may such Declaration of k t x a t i o n or Supplemental Declaration revoke, m w o r add to the covmauts, conditions, rwbictions, reservation of easements, or equitable servitudes established by this Master Declaration as the same pertain to the red property originally covered by this Master Declaration.

I S-5, Deannexation and Amendment. D e c l m t (or Dwlarant and a Merchant Builder actiw together if the Phase is o m d by a Merchant Builder) may amend a Declaration of~&exationo r delete all or a wkon of a Phase from coverage of this Master Declaration and the Master Association's jurisdiction, so long BS D e ~ I a r ~ x ~ t a.Me~:hsnt Builder is the owaw ofaU of such P)masa md provided that (a) an amending htmment or a Notice of Ddetion of Territory, as applicable, is Recorded in the same mmer as tbe appliable Dec1don of Annexation was Recorded, (b) Deckant or the Merchant Builder has not exercised m y Master Association vote with respect to any portion of such Phase, (c) Annual Assessments have not yet ~ ~ with respect n to d

any portion of such Phase, (d) Close of Escrow has not o c m e d for the sale of any Lot in such Phase, and (e) the Master Association has not made any expenditures or incurred any obLigations with respect to any portion of such Phase.

This Master Declaration is dated for identification purposes Sept

2 9,1999.

ALLEGHANY PROPERTIES NC.,a Delaware c q r p u r a t i ~ ~

By:

STATE OF CALIFORNIA )

COUNTY OF~AC&.@Z~)

) ss.

OS$,J~~ a ? .1999,beforeme,

and psonally knownto basis of satisfactory evidence) to be the perso@) whose name&) (is) (&) subxribedto the within hmmknt a d aclmowledged to me that (he) &$@hey) executed the same in @is) @++heir) authorid capacity*), and that by (his) @@-@ha$ signatwe@)on the instrument the person&, or the entiv upon behalf of wbich the person@ acted, exwuted the instrument.
1

d m

v.D;A-~~E /RIST~W~~~

WITNESS my hand and official seal.

u Notary hblic in
for said State

lNKlLl3D, "MASTER PARCEL MAP OF NATOMAS CROSSMG", FILED SEPTEMBER 17,1999, IN BOOK I55 OF PARCEL, MAPS ATPAOE 13, -0maAL RECORDS.
EXCEPTING TEEREFROM ALL THATPORTION OF PARCEL 18 N 19 W V E MENTIONED B r n G ALL THATREAL PROPERTY&s SHOWN ON THAT CERTAINMAP E3NTm,ED ''PLAT OF NATOMAS CROSWG PHASE 1," FILED SBPTEMBER 17,1999, I N BOOK 265'0FMAPS, AT PAGE 1, QMCW.WCORDS.
. . .

PARCELS 18,19,20 AND 21, AS SHOWN ON THAT CERTAIN MAP

LOTS 23 THROUCSH.38,.AS SHOWN ON THAT CERTAIN MAP ENTTnED-TLAT OF WATOMAS CROSSING PHASE I " ,EILED S E R 17,1999. IN BOOK 265 OF MAPS, PAGE l,O~ICIALl?ECURD$.

E m I T "A"

ARTICLES OF INCORPORATION OF THF, MASTER ASSOCIATION

ENFORCEMENT POLICY
The Rules and Regulations, as well as other Governing Documents, of the Natomas Crossing Community Association may be enforced in accordance with the provisions of the CC&Rs and the laws of the State of California as they may exist from time to time.
See Article XIV, CC&Rs: Each Owner, contract purchaser, lessee, tenant, guest, invitee or other occupant of a Lot shall comply with the provisions of the Governing Documents. The Board, on behalf of all other Owners, shall enforce the obligations of each Owner to obey such Rules or restrictions in any manner provided by law. This may include legal action, suspension of membership rights, and the levy of fines. For those violations that are not easily verifiable by management representatives, residents shall submit complaints to management in writing identifying the persons and activities involved. The identity of the persons making the complaint shall be kept confidential by the management agent. Persons submitting such complaints may be asked to appear at future enforcement hearings to verify such activities.

In order to enforce the provisions of the Governing Documents for the benefit of all owners and residents, the Board of Directors has adopted the following Enforcement Policy. This policy shall pertain to all regulations of the community including architectural guidelines and use restrictions.
First Violation: Warning letter with a 10-day minimum period i n which to 1) correct the violation. The 10-day period may be shortened due to safety concerns.

Second Violation: Upon a second or continuing violation of the same nature as 2) noticed in the original warning letter, a hearing notice may be sent to the owner advising that the Board may issue sanctions, including the levy of fmes, and/or the temporary suspension of member privileges and rights. Said notice will be issued at least ten (1 0) days prior to the hearing and shall provide the owner with an opportunity to attend such hearing. No sanctions may be issued until such hearing is conducted. The Board shall cause a notice to be issued to the Owner within fifteen (15) days following of the hearing giving notice as to the actions taken by the Board at said enforcement hearing.
Subsequent Violations: Subsequent or continuing violations after the initial hearing shall result in additional hearing notices as described above.
3)

NATOMAS CROSSING COMMUNITY ASSOCIATION

FINE SCHEDULE
The following fmes, i n addition to other sanctions, may be levied by the Board of Directors in accordance with the Natomas Crossing Community Association's published Enforcement Policy:

Use Restriction Violations: First Violation

Second Violation (same offense or of same nature)

$50.00 Fine $100.00 Fine

Third Violation (same offense or of same nature)

Subsequent incidents

$200.00 Fine

$200.00 each occurrence

The Board also has the authority to consider the additional possibility of daily, weekly or monthly fines being levied for continued non-compliance.
Architectural Violations: Improvement without Approval
$100.00 Fine - First Occurrence

Failure to Remove Unapproved Improvement

$100.00Fine - Fkst Occurrence

The Board also has the authority to consider the additional possibility of daily, weekly or monthly fines being levied for continued nun-compliance. Subsequent fmes may double for each continuing or additional violation.
Other Sanctions: At any hearing during which the Board of Directors is considering sanctions for continued violation of the Governing Documents, the Board may also suspend an owners voting rights. In the event of continuing parking violations, pursuant to the California Vehicle Code, the Association may, foilowing required notice, tow the vehicle, at owner's* expense, from the community without the necessity of a hearing.

Failure to pay fines within thirty (30) days fiom the date fine is lekied will result in a late fee in the sum of $10.00. Failure to pay a fine may a1s.o result in legal action within Small Claims Court. Judgments thus obtained may be enforced according to law. The Association may also exercise its right to record a Lien upon a property for unpaid Fines.
'

NATOMAS CROSSING MASTER ASSOCIATION ARCHITECTURAL REVIEW COMMITTEE ARCHITECTURAL GUIDELINES

EFFECTlVE (Approved 3123104)

The Declaration of Covenants, Conditions, and Restrictions (CC&R'S) for Natomas Crossing Master Association in the County of Sacramento, recorded on October I 1999 in the office of the Sacramento County Recorder in Document 199910011014 and any amendments thereto (CC&R'S) and specifically Article Vlll, Section 8.1 of the CC&R'S, authorize the formation of an Architectural Review Committee which shall have the duty to consider and act upon such proposals or plans submitted to it pursuant to the terms of the CC&R'S, to adopt Architectural Guidelines (Guidelines), and to carry out all other duties imposed upon them by the CC&R'S.

Article VIII, Section 8.2 of the CC&RIS provides that no reconstruction of an existing improvement, installation of a new Improvement after Close of Escrow from Declarant or a Merchant Builder, or alteration of an existing Improvement of any type, in the properlies may be commenced or maintained until the plans and specifications therefore showing the nature, kind, shape, height, width, exterior color scheme, materials and location thereof have been submitted to and approved in writing by the Architectural Review Committee in accordance with the provisions of the CC&RtS and subject to the approval of the County of Sacramento. Pursuant to Article I, Section + -23, I improvement is defined as "...any structure or appurtenance thereto, including, but not limited to, buildings, walkways, sprinkler pipes, recreational facilities, roads, driveways, parking areas, fences, screening walls, block walls, ,retaining walls, stairs, decks, landscaping, antennae, the paint on all exterior surfaces, hedges, windbreaks, patio covers, railings, plantings, planted trees and shrubs, poles, signs, storage areas, exterior air conditioning and water softening fixtures or equipment."

These Guidelines have been adopted by the unanimous vote of the Members of the Architectural Review Committee and the Board of Directors and apply to submission of plans for approvat by the Architectural Review Committee. These Guidelines amend, modify, supplement, change, extend and renew all previous Guidelines, rules andlor standards. In the event that any tribunal of competent jurisdiction invalidates any paragraph, section, sentence or Article of the Guidelines, all remaining provisions of the Guidelines shaH remain in full force and effect and the Architectural Review Committee will meet within thirty (30) calendar days for the purpose of establishing an adequate replacement thereof, which will most dosely meet the objectives of such invatid provision.
1.O

SUBMISSION OF PLANS FOR APPROVAL

Page 1 of 12

1.1 All plans, specifications and any work thereunder must conform to the requirements of the CC&R'S or these Guidelines, whichever is more restrictive. In the event of a conflict between these Guidelines and the CC&RIS,the more restrictive shall apply. H shall not be the obligation of the Architectural Review Committee to determine if plans, specifications or any work thereunder comply with any governmental law, ordinance or regulation, including but not limited to applicable laws regarding building permits, building codes and standard or safety regulations. All applicants must comply with such laws, ordinances and regulations, in addition to the CC&R'S and these Guidelines. The Architectural Review Committee is not responsible for the structural or drainage adequacy of any plans submitted for approval. 1.2 The Architectural Review Committee may review and a d upon plans submitted by prospective owners prior to their acquisition of title. Any such action of the Architectural Review Committee for prospective owners shall be conditioned upon such prospective buyer acquiring a fee simple interest in the property described in the plans. Such approval is not applicable to any other property without the express written consent of the Architectural Review Committee.
1.3 Plans must be submitted in duplicate and accompanied by the Natomas Crossing Request for Alternations form, showing the homeowner's name, address, telephone number, owner's signature, surrounding neighbor's signatures denoting they are aware of proposal, proposed construction schedule and a written description of the

requested alternation. The plans and completed request form should be sent to:
Natomas Crossing Architectural Review Committee c/o Massingham & Associates Management, Inc. 7919 Pebble Beach Drive, Ste. 210 95834 Citrus Heights, California 95610 Phone Number 916-536-4135

1.4 Plans must be drawn to scale, showing location, color and dimensions of existing structures, driveways, sidewalks and fences, as well as location, setbacks, color and dimensions of proposed additions andlor improvements, including but not limited to patio covers, visible landscaping areas, walls and fences, gazebos, screens, structures of any kind, sports apparatus, balconies, spas and pools, etc. Plans shall be accompanied with a description and/or sample of all proposed materials and colors to be used. 1.5 No landscaping on a lot visible from the street shall be undertaken until plans and specfications have been submitted to and approved in writing by the Architectural Review Committee. Backyard landscaping, hardscape (walkways, patios, etc.) and decks which are not visible (excluding back yard trees) from the streets do not need Architectural Review Committee approval unless changes are made to sloped areas, the yard swale, or other drainage systems. Swale is the grading of the yard that directs water away from the house,your neighbor's yard, and into the city's street storm drain system.
1.6

of grass sodlseeding, trees, hedges, shrubs, and irrigation. Minor changes to front yards
Page 2 of 12

Front and any corner tot side yard landscaping plans shatl indude the type

including planting of flowers, small (not to exceed 4 feet) rose bushes, plants & shrubs, or replacement of existing like trees, shrubs or plants do not require the approval of the Architectural Review Committee. Please note the City of Sacramento requires specific street trees in front and corner side yards for each home. Major changes to front yards and any corner tot side yard including driveway or walkway additions, deletion or addition of turf areas, trees, rock, concrete, stone work, structures or improvements requiring electricity (i.e., lamp posts, spot lights, vapor lights, etc.) must be submitted for review and approval by the Architectural Review Committee.

1.7 Article X, Section 10.4 of the CC&R'S states: No one may intetfere with or alter the rain gutters, downspouts or drainage systems originally installed, alter the grading, or othenvise alter or interfere with the established drainage pattern over any lot unless an adequate alternative provision is made for proper drainage with the ARC'S prior written approval. Changes to any drainage systems identified above require ARC approval for the alternative drainage provision and all plans showing yards (front, back, or side) must indicate the intended drainage path.
1.8 The Architectural Review Committee may request any additional information, plans and details as it reasonable sees fit to adequately review the request for approval. 1.9 Wmin forty-five (45) days of receipt of a Request for Alternations for approval that complies with the above guidelines, the Architectural Review Committee shall review the request (as set forth in section 3.0 "Architectural Review Committee Meetings") and shall grant written approval, written denial, or a written request for additional information or clarification of information submitted. The Architectural Review Committee may reject any submitted Request for Alternations that do not comply with these submission guidelines. Such rejection shall be accompanied by a statement of what deficiencies must be corrected prior to formal review by the Architectural Review Committee. 2.0 GENERAL ARCHITECTURAL GUIDELINES

The following are general guidelines the Architectural Review Committee will follow in approving or disapproving your plans. The Committee reserves the right to amend them from time to time without prior notice to homeowners. For more specific guidelines, refer to the CC&RIS.
2.1 Approval of City of Sacramento: Without approval of the C i t y of Sacramento, no Owner may construct an addition to or remodel a residence, or construct or architecturally alter a swimming pool, spa, accessory structure, fence, etc. that requires a building permit. 2.2 Clothes Drying Facilities: No outside clotheslines or other outside clothes drying or airing facilities are allowed on a lot unless they are obscured from the view of adjoining lots, homes, and streets.

Page 3 of 12

2.3 Commercial Use: Plans submitted to facilitate commercial use must comply with the following restrictions: No part of any residence shall be used, or cause to be used or allowed or authorized in any way, directly or indirectly, for any business, commercial, manufacturing, mercantile, storing vending or non-residential purposes unless specifically permitted by local ordinance and Article X, Section 10.2 of the CC&RIS.

n o t exceed 12" are automatically approved if the extensions are constructed of concrete
similar to the existing driveway (uncolored & swept finish). Architectural Review Committee approval is required for addition walkways or driveways, driveway or walkway extensions of more than 12" per side, or if constructed of materials other than concrete, or concrete with a different color or finish than the existing concrete. No driveway addition may be used as a parking area. City Code prohibits more than 40% of the front yard for off-street parking & driveways and an additional maximum 10% for walkways & uncovered patio use. Most driveways in Matomas Crossing meet this limit. Requests that exceed city ordinances will be disapproved. All other requests will be reviewed on a case-by-case basis. Corner lot side yard driveways to permit access to backyard will also be reviewed on a case-bycase basis. All homeowners are reminded that vehicles, boats, campers, RVs, etc., may not be stored in the backyard if visible from the street
2.5 Exposed Equipment: No equipment shall be exposed to public view induding sport apparatus. The Architectural Review Commitlee may approve basketball standards if they are located in rear or side yard areas only. Portable basketball standards are not permitted on the public streets or sidewalks. No basketball standards may be affixed to the front of a home or garage or erected in the front.

2.4

Driveways and Walkways: Driveway or walkway side extensions that do

Television or radio poles, satellite dishes, cables or antennae of any description installed outside or a dwelling are subject to Article X, Section 10.10 of the CC&R1s. See Appendix A for addition guidelines.

2.6 Fences: No fences, gates, hedges, or walls shall be erected, installed, moved, reconstructed or maintained other than those installed by the builder, unless first approved by the Architectural Review Committee. Fences and gates, including staining, shall be of a material that is compatible with the surroundings and of a material similar to that of existing fences. Fences and gates may be stained but not painted. Acceptable stain types and colors are semitransparent and wood-tone colors only. Fences andlor gates over six feet in height (as measured from a level area adjaoent to such fence) which obstruct the view of any adjacent neighbor or are visible from the streets or adjoining lots, will require the written approval of the affected neighbor, as well as approvaf from the Architectural Review Committee and the City of Sacramento. No landscaping or fences installed shall prevent adequate driver visibility from the streets within the project. Requests to reduce the existing street side fence setbacks will be disapproved

Page 4 of 12

. 2.7 Fires: No exterior fires whatsoever, except barbecue fires contained within receptacles designed for such purpose, are permitted. Interior fireplaces and stoves must be EPA certified.
,

2.8 Irrigation Control: Proper irrigation and drainage is essential for the maintenance and appearance of our homes, yards, and community. All homes in our community have several builder provided drainage systems, i.e., rain gutters, grading of the yards (swale), street drains, retention basins, etc. The builders also provided front yard landscaping with an automatic sprinkler system. The homeowner is expected to landscape and irrigate the side and back yards. All Homeowners must routinely adjust their irrigation system throughout the year to insure their yards are not under or over irrigated
In addition to the expected landscaping and irrigation improvements many Homeowners install underground drainage systems and unknowingly create a safety hazard and potential liability by placing the drain outlet as close as possible to the street-side walkway. The drainage is deposited directly on the walkway resulting in constantly wet concrete that becomes a green unsightly slippery mess. Drain outlets should be placed back far enough in the yard (usually near the side fence) to allow the irrigation drainage to be absorbed by the front lawn. Over watering may also create unsightly, slippery walkways.

Many homeowners use a single 3 or 4-inch plastic corrugated tubing for the drain tine. A single drain line may be adequate for irrigation drainage, but not for flood control. Tying in the rain gutters andlor changing the swale (grading) to direct all drainage to the same line quickly exceeds the capacity of a single drain line. Consider using separate Refer to sections 1.7 and 2.19 for lines, mutil-lines, larger diameter lines, etc. additional guidelines
2.9 Landscape Materiab: Visible yard decorations (i.e., statues, water features, fountains, etc.) or visible coverage of any rock, gravel or sand needs approval of the Architectural Review Committee. Each request and ali items will be reviewed on a case-by-case basis. Consideration will be given to the appearance, relevant size, shape, color, appropriateness, and any other considerations the ARC deems necessary. Significant replacement of visible' landscape bark with rock, gravel or sand will be disapproved.

2.10 Nuisances: No plans shall be approved which might, in the opinion of the Architectural Review Committee, render any lot portion thereof, unsanitary, unsightly, harmful or detrimental to any property in the vicinity or to the occupants thereof. No exterior speakers, horns, whistles, bells, or other sound devices, except security devices used exclusively for security purposes shall be located, used or placed on any lot.
2 1 Outside Lighting: No exterior yard lighting without adequate and proper shielding shall be installed on any residence or erected in any yard without Architectural Review Committee approval.

Page 5 of 12

2.12 Patio Structures or Covers, Awnings, Arbors, Trellises, Gazebos, Sheds, Sunshades, and Car Covers: For the purpose of this guideline, patio structures or covers, awnings, arbors, trellises, gazebos and sheds shall be considered to mean an improvement as defined and controlled by the various articles and sections of the Natomas Crossing CC&R and this Architectural Guideline, All improvements require Architectural Review Committee approval. Plans and a Request for Alternations should be submitted before beginning construction.

Sunshades shall be considered to mean an item or structure designed to provide temporary relief from the sun or weather and as such do not require the submission of a Request for Alternations. Examples of sunshades are; an item or structure designed or sold so that it can be easily assembled and disassembled, a simple four-pole canopy, or a table umbrella. Sunshades may not be left out on a permanent basis. Depending upon the type of sunshade and its generally accepted use, it may be left outside for a day, week, or month, but no longer than the season.
Small, portable sheds do not require Architectural Review Committee approval. AII sheds shall have minimal visibility from the street. Self-standing structures for sheltering cars, boats, RVs, etc., or similar looking structures shall be considered temporary structures and as such must follow the restrictions of section 2.20 Temporary Structures. The Architectural Review Committee retains the right to describe an item or structure, its allowabte location, aesthetic appeal, and the length of time it may remain outside. 2.13 Security Screens, Doors, & Bars: May not be installed without approvat from the Architectural Review Committee The design of said security devices must be aesthetically pleasing as well as functional. Plans submitted for review must indicate how the design will contribute to the architectural style of the house. A design that looks strictly functional is prohibited and will be disapproved
I Setbacks: Minimum setbacks for all structures including accessory structures (pools, spas, sheds, etc.) shall be in accordance with the C i t y of Sacramento Codes and Ordinanoes.

2.15 Signs: Please refer to Article X; Section 10.4 of the CC&R'S regarding various sign uses permitted.
2.16 Sloped Areas: The Homeowner shall maintain any slope areas within any lot in a neat, orderly and safe condition and in such a manner as to enhance their appearance, maintain established slope ratios, and prevent erosion and sliding problems and to facilitate orderly discharge of water through drainage systems. No cutting into or encroachment upon a slope will be permitted without approval first obtained from the Architectural Review Committee. No structure, planting, debris or other materials shall be placed or permitted to remain or other activities undertaken which might damage or interfere with established slope ratios, create erosion o r sliding problems, or interfere with established drainage function or facilities.
Page 6 of 12

2.17 Structures for Animals: No structure for the care, housing or confinement of any animal shall be maintained so as to be visible from neighboring property unless approved by the Architectural Review Committee.
2.18 Storage of MateriaIs: Storage of construction materials is not allowed in the public streets. Construction debris shall be removed from the front yard of a residenoe on a daily basis.

2.19 Swales, Drainage Control, & Grading: Article XIV, Section 14.15 & 44.16 of the CC&R'S states: Adequate drainage and irrigation control should be utilized. The construction or modification of Improvements should not result in ponding of surface drainage water. The landscape irrigation system should be designed to prevent excessive saturation of expansive soils. Water must drain away from the house footings and other Improvements constructed upon the Lot and obstructions such as walls should not be constructed across swales unless adequate replacement drainage Improvements have been installed or created. Planters created by walkways next to a Dwelling Unit should be lined with an impervious surface and should contain drain inlets to drain excess water, Drainage onto adjaoent Lots is not permitted unless an easement has been granted over such adjacent Lot for such purpose.
The grading and drainage design of a Lot should not be altered by any Owner or by any contractors or agents of an Owner in the course of installing Improvements such as patios, planters, walls, swimming pools or spas in a manner that will redirect surface water flow toward the Dwelling Unit or onto adjacent property or that will trap water so that it ponds and floods. Drainage devices such as concrete ditches, area drain lines and gutters should be carefully designed and installed with professional assistance. Drainage devices installed by the Declarant or by a Merchant Builder that are designed to senre more than one lot, should not be altered or modified in a manner that will redirect or obstruct the drainage through these drainage devices. Any grading and drainage modifications are subject to applicable codes of the applicable local governmental agency and the terms of any other drainage easements that may be of record. Refer to sections 1.7 and 2.8 for additional guidelines 2.20 Temporary Building: will not be permitted without approval first obtained from the Architectural Review Committee and will be considered on a case-by-case basis. Plans submitted to facilitate temporary occupancy will be disapproved. Article X, Section 10.8 of the CCBRS states: "No garage, carport, trailer, camper, motor home, recreation vehicle or other vehicle may be used as a residence in the Properties, either temporarily or permanently." 2.21 Utility Service: No lines, wires, or other devices for communication or transmission of electric current or power, shall be constructed, placed or maintained anywhere in or on any lot, untess contained in conduits or cables underground or concealed in, under or on buildings or other approved structures, excluding temporary power or telephone senrices incidental to construction of approved buildings. Wires or cables for such services as phone, Internet access, or N(cable or satellite) shall be concealed. See Appendix A for addition guidelines.

Page 7 of 12

3.0

ARCHITECTURAL REVIEW COMMITTEE MEETINGS

3.t The.Architectural Review Committee shall meet as necessary to properly perform its duties. The Committee can convene by telephone if necessary.
3.2 Notice of meetings is not required to be in writing and may be given by telephone, E-mail, or other means. Meetings shall be held not mare than thirty (30) days after receipt of a plan submitted for approval.

3.3 The Committee shall keep records including copies of its Rules, Guidelines and Procedures, plan approvals andfor rejections, and copies of correspondence to Homeowners and others.
3.4 In reviewing plans, the Committee may, but is not obligated to, have the plans reviewed by and consider the opinions of professional consultants and others including those who are not Members of the Association, conduct open hearings and consider evidenoe and comments from all relevant sources, and make a personal inspection of the property involved without the presence of other Members of the Architectural Review Committee or the Owner of the property. If the Architectural Review Committee chooses to conduct an open hearing, at least five (5) days prior written notice of such hearing must be given to the Owner submitting plans for approval. Such hearing may be adjourned and reconvened at a time no later than twenty-five (25) days from the date the plans were submitted for approval.

3.5 The Architectural Review Committee will review the plans and either grant approval in entirety, disapprovat in entirety, or approval subject to conditions. The Architectural Review Committee shalt notify the Homeowner in writing of its decision within 45 days after the date all required application materials have been received by the Architectural Review Committee.

3.6 Any Member of the Architectural Review Committee who has an ownership or financial interest in the property for which an applimtion is being processed, or is legally related to the applicant, must disqualify himself or herself from participating in the architectural review process of that application.

3.7 Approval of any plan by the Architectural Review Committee does not waive the necessity of obtaining any permits that may be required. If Architectural Review Committee approval is obtained and the City, County, or any other authority requires modifications to the plans, such modification to the plans must be reviewed and approved by the Architectural Review Committee pursuant to procedures set forth in these Rules, prior to the start of any wok.

4.0

PROCEEDING WITH WORK

4.1 Upon receipt of approval from the Architectural Review Committee, the Owner shall begin and complete work within one year from the date of approvat or approval given shall be deemed revoked.
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5.0

NON-COMPLIANCE AND ENFORCEMENT PROCEDURES

5.4 If the Architectural Review Committee finds that the work has not been done in substantial complianoe with the approved plans, the Committee shal notify the Owner in writing and request that the Owner remedy same.If the Owner fails to remedy the non-compliance within sixty (60) days after the date of the notice of non-compliance, the Architectural Review Committee shall notify the Board in writing of such failure in order that the Board shall commence a Notice and Hearing pursuant to CC&R Article V 1 1 1 , Section 8.6.2
6.0

WORK PERFORMED WITHOUT PRIOR APPROVAL

6.1 If work is commenced or completed without Architecturai Review Committee approval, the Committee may require the Homeowner to submit plans for approval and may approve or disapprove the plans, notwithstanding the fact that work has commenced prior to Architectural Review Committee approval. If plans submitted for approval are found to be in violation of the CC&R'S, these Guidelines, or othennrise by the Architectural Review Committee; or the Owner fails to submit plans as requested by the Architectural Review Commitlee within ten days after the date of written request from the Architectural Review Committee, the Architectural Review Committee shall notify the Board in writing of such failure in order that the Board shall commence a Notice and Hearing pursuant to CC&R Article VIII, Section 8.6.2

Alternatively, if there is prima facie evidence that an architectural violation exists that will result in a Architectural Review Committee disapproval, and the only appropriate remedy to rectify the violation would be the removal of said condition, the Architectural Review Committee may inform the Board in writing of the violation and recommend that the Board pursue the appropriate remedy pursuant to CC&R Artide XIV, Section 14.1. I without necessitating the Homeowner to submit an application to the ARC.
7.0

GENERAL CONDITIONS

7.1 Any condition or material not defined within these Guidelines shall become a matter of judgment on the part of the Architectural Review Committee untess described in the CC&RIS. See the CC&R'S for the general use restrictions.

7.2 Neither the Architectural Review Committee nor any Member thereof shall be liable to any Owner for any damage, loss, or prejudice sufferedto be claimed on account of:
A. B.

the approval or disapproval of any plans, drawings and specifications, whether or not defective;
the construction or performance of any work, whether or not pursuant to approved plans, drawings and specifications;
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C.

the development of any property within the project.

7.3 Pursuant to Article VIII, Section 8.2 of the CC&RIS, "Declarant" or l ~ e r c h a n tBuildern under the CC&R'S is exempt from the Architectural Review Committee; therefore, these Architectural Review Committee Guidelines shall not apply to the Declarant or Merchant Builder.
7.4 The Architectural Review Committee Guidelines may be amended only by a unanimous vote of the Architectural Review Committee and a majority vote of the Board of Directors.

Page 10 of 12

INSTALLATION OF AN AUTHORIZED COMMUNlCATlON SYSTEMS Appendix A of the Natomas Crossing Architectural Guidelines To facilitate the use of the latest communications systems available to Natomas Crossing residents the following installation guideline is provided. This guideline applies to systems that require the use of an authorized antenna such as satellite & ground based TV, radio, internet, etc., and those that do not require an antenna such as cable TV, telephone, internet, etc. The Natornas Crossing CC&K s defines an authorized antenna.

The installation, location or maintenance of an authorized wmmunicrttions s y s t e mm u s t not affect the safety of any person. The visibility of an authorized antenna, wire, andor cables shall be minimized with respect to other owners; provided said visibility requirement does not unreasonably delay, prevent or substantially increase the cost of maintenance or use of an authorized communications system, ox preclude reception of an acceptable quality signal.
Safetv. The safety of dl persons residing, visiting or working in Natomas Crossing is of utmost importance. No component of the system should be placed, mounted, or installed either tempomily or permanently in or at a location where such equipment presents a safety hazard. Do not use unsafe equipment or use equipment in an unsafe manner. For example: Do not locate an antenna above an entry way or balcony. Choose a location and mounting hardware that wil securely support your antenna. Use a ladder - not chairs, tables, etc. Do not over extend your reach or perform other unsafe actions that could result in falls or other injuries. Avoid w W g or standing on rooftops. Antenna Location. The antenna should provide the required signal to the receiver. In simple terms a satellite dish must be positioned in a location that is able to "see" the satellite. The most desirable location is one in which the satellite can see the dish, but people cannot. If possible: Avoid the front area of the house, use the house sides or back Mount the dish to the side of house near the roofline or on the roof, but no higher than 4 feet above the rooftop. The dish should not be mounted on or to a fence or pole.
Visibility of External Cables. The-visibility of all wires and cables should be reasonably minimized. Not every means available to meet this requirement is listed below nor does this list imply every listed means is appropriate for every install. Locate the dish to minimize length of exposed cable Route cables to some concealment point leaving only a short length of exposed cable from the ground (as in cable TV)or antenna (as in satellite TV) to the concealment point. Conceal the cable by d n g it through the attic; under eaves or fascia; next to trim, rain gutters, or other house features. Paint cables to blend into the house Securely fasten cable to supporting structures to prevent loose or drooping cables; avoid long horizontal cable runs that will eventually sag or otherwise become unsightly.

External Maintenance. Securely mount the antenna to prevent excessive movement h m the wind to avoid misalignment of the antenna and possible damage to the structure. Also carefully place the cable so as to create a drip loop. Water running down cables fiom rain, condensation, etc., should drip away fiorn your house, not into it!
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'

Natomas Crossing CC&R Article X, Section 10.10

Antenna. Owners are prohibited from installing any antennae on the exterior of a Dwelliw Unit for any purpose, except for an "AuthorizedAntenna" An "Authorized Antenna"may be installed so long as'the proposed location for such installation ensures that the visibility of the Authorized A n t e m is minimized with respect to other Owners. The ARC, using its sole good faith discretion, m y require that the placement of any Authorized Antenna be changed so long as the new location identified by ARC does not (1) unreasonably delay, prevent or substantialIy increase the cost of maintenance or use of an Authorized Antenna, or (2) preclude reception of an acceptable q d i t y signal. The ARC may prohibit the installation of an Authorized Antenna if the installation, location or maintenance of such Authorized A n t e m affects the safety of any Person.
An "Authorized Antenna" means (i) an antenna that is designed to receive direct broadcast satellite service, including direct-to-home satellite service, that is one meter or less in diameter and is screened h m view from the ground but is in no event more than four (4) feet above the roof, (ii) an antenna that is designed to receive video programming service, including multichannel multipoint distribution service, instructional television fixed service, and local multipoint distribution service, that is one meter or less in diameter or diagonal measurement and is screened from view from the ground but is in no event more than four (4) feet above the roof, or (iii) an antenna that is designed to receive television broadcast signds, that is one meter or less in diameter or diagonal measurement and is screened h m view from the ground but is i n no event more than four (4) feet above the roof.

The Board may adopt additional restrictions on installation or use of an Authorized Antenna on an Owner's Dwelling Unit as a part of the Master Association's Rules and Regulations so long as such restrictions do not (1) unreasonably delay, prevent or substantially increase the cost of installation, maintenance or use of an Authorized Antema, or (2) preclude reception of an acceptable quality signal, or (3) violate applicable law.

The Board also has the power to (i) prohibit an Owner from installing an Authorized Antenna on property which such Owner does not own or is not entitled to exclusive1y use under the Restrictions, or (ii) allow an Owner to install an antenna other &an an Authorid Antenna subject to applicable architectural standards and review and approval by the ARC.

Natomas Crossing Architectural Guideline Article 11, Section 2.1 9

Utility Service: No lines, wires, or other devices for cominunication or transmission of electric c m t or power, shall be constructed, placed or maintaind anywhere in or on any lot, unless contain4 in conduits or cables underground or concealed in, under or on buildings or other approved structures, excluding temporary power or telephone services incidental to c o m ~ o n of approved buildings. Wires or cables for such services as phone, Internet access, or TV (cabk or satellite) shall be concealed.

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RESOLUTION
WHEREAS, The Board of Directors for the Natomas Crossing Community has determned to establish a covenant compliance polcy in conjunction with the unit being transferred to a new
owner.

WHEREAS, Article 5.3 of the CCsR s specifically permits the Board of Directors to adopt and amend rules within the Association.

NOW THEREFORE, BE IT RESOLVED THAT at the time of each transfer of Unit ownership, the Associaton shall requre a Covenant Compliance Inspection of the Unt in conjuncton with the Association disclosure process. Such inspections will be coordinated through and conducted by, the Association Management Company. All fees associated with resale, including said inspection shall be the responsibility of the real estate transaction parties, and not the Association.
IT IS FURTHER RESOLVED that this COVENANTS COMPLIANCE INSPECTION requirement is effectve upon adoption hereof, to remain in force and effect until revoked, modifiedor amended.
The foregong Resoluton was adopted by the Board of Directors at a meeting of same on September 18, 2007, and has not been modfied, rescinded or revoked,