Jeanne H. McDonald, Esq.

15760 Ventura Boulevard, Suite 700 Encino, CA 91436

RESTATED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ESTABLISHING A PLAN OF CONDOMINIUM OWNERSHIP
of

WESTCHESTER WOODS HOMEOWNERS ASSOCIATION

a California nonprofit mutual-benefit corporation located at 8650 and 8710 Belford Avenue Los Angeles, California 90045

If this document contains any restriction based on race, color, religion, sex, sexual orientation, familial status, marital status, disability, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry, that restriction violates state and federal fair housing laws and is void, and may be removed pursuant to Section 12956.1 of the Government Code. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status.

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TABLE OF CONTENTS ARTICLE 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 ARTICLE 2 2.1 2.2 2.3 DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Association. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Balcony . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Building .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bylaws .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CC&Rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Committee .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Condominium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Condominium Plan .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Director .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exclusive Use Common Area . . . . . . . . . . . . . . . . . . . . . . . . . . . Governing Documents .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Improvements .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Owner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Person .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Regular Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Resident . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rules .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Special Assessments .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tenant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vehicle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Definitions of Other Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . THE ASSOCIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Management of the Association... . . . . . . . . . . . . . . . . . . . . . . . . . Powers of a Nonprofit Corporation... . . . . . . . . . . . . . . . . . . . . . . . Specific Powers of the Association. . . . . . . . . . . . . . . . . . . . . . . . . a. Enforcement of Governing Documents. . . . . . . . . . . . . . . . . . b. Enactment of Rules.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Incur and Pay Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . d. Charge Fees.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e. Pay Taxes and Assessments. . . . . . . . . . . . . . . . . . . . . . . . . f. Borrow Money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . g. Represent Association in Litigation. . . . . . . . . . . . . . . . . . . . h. Property of Association. . . . . . . . . . . . . . . . . . . . . . . . . . . . i. Foreclose and Hold Title. . . . . . . . . . . . . . . . . . . . . . . . . . . j. Delegation to Manager.. . . . . . . . . . . . . . . . . . . . . . . . . . . . k. Approval Revocable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Limitation on Professional Management Contract. . . . . . . . . . . . . . . Limitations on Sale of Property. . . . . . . . . . . . . . . . . . . . . . . . . . . Limitations on Capital Improvements. . . . . . . . . . . . . . . . . . . . . . . Vendor Contract Limitations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . i 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 5 6 6 6 6 6 7 7 7 7 7 7 7 7

2.4 2.5 2.6 2.7

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2.8 ARTICLE 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 ARTICLE 4 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 ARTICLE 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 ARTICLE 6 6.1 6.2 6.3 6.4 6.5 6.6 6.7
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Nonprofit Character of Association.. . . . . . . . . . . . . . . . . . . . . . . . 8 MEMBERSHIP.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Membership... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Proof of Membership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Trusts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Voting Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Inspection of Records.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Obligation to Follow Governing Documents.. . . . . . . . . . . . . . . . . . . 9 Supervision of Minors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Provide for Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Purchase Subject to Violations.. . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Obligation to Provide Access. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Delivery of Documents to Prospective Buyers. . . . . . . . . . . . . . . . . . 9 Notice of Transfer of Ownership or Occupancy. . . . . . . . . . . . . . . . 10 Notice of Mortgage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 PROPERTY RIGHTS AND EASEMENTS.. . . . . . . . . . . . . . . . . . . . . . . Ownership of Common Areas. . . . . . . . . . . . . . . . . . . . . . . . . . . . Ingress, Egress and Support. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Easement of Enjoyment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Easement for Encroachment. . . . . . . . . . . . . . . . . . . . . . . . . . . . Utility Rights and Duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Prohibition Against Severance. . . . . . . . . . . . . . . . . . . . . . . . . . . No Power to Encumber Real Property. . . . . . . . . . . . . . . . . . . . . . Association Easement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conveyances; Limitation on Granting Easements. . . . . . . . . . . . . . . MAINTENANCE AND REPAIR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Maintenance Standards.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Association Responsibility for Common Areas... . . . . . . . . . . . . . . . Owners Responsibility for Units. . . . . . . . . . . . . . . . . . . . . . . . . Associations and Owners Maintenance and Repair Responsibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Termites and Pests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power to Vacate Unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Association Repairs of Damage.. . . . . . . . . . . . . . . . . . . . . . . . . . Limitation of Association Liability for Damage. . . . . . . . . . . . . . . . Maintenance of Unit Alterations.. . . . . . . . . . . . . . . . . . . . . . . . . Damage During Unit Alterations. . . . . . . . . . . . . . . . . . . . . . . . . . Damage to Others Sustained Inside Owners Unit.. . . . . . . . . . . . . . Owner Liability for Damage.. . . . . . . . . . . . . . . . . . . . . . . . . . . . Owner Repair of Damage; Notice. . . . . . . . . . . . . . . . . . . . . . . . . GENERAL RESTRICTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Balconies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Barbecues... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Flammable Materials... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Harassment... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Health Hazards.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Insurance.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jacuzzis and Hot Tubs.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii 10 10 10 10 10 11 11 11 11 11 12 12 12 12 12 12 12 13 13 14 14 14 14 14 14 14 15 15 15 16 16 16

6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 ARTICLE 7 7.1 7.2 7.3 7.4 7.5 7.6 7.7 ARTICLE 8 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 ARTICLE 9 9.1 9.2 9.3 9.4 9.5 9.6 9.7
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Laundry.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Limit on Purchase of Units.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . No Drilling... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notice of Danger.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nudity.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nuisance... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Obstruction of Common Areas... . . . . . . . . . . . . . . . . . . . . . . . . . Occupancy Disclosure.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Occupancy Restriction... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pests.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power tools... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Residential Use.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Roof Restricted Access.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sale of Unit... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Satellite Dishes, Antennas and Electrical Wiring... . . . . . . . . . . . . . Signs.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Smoking.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Storage Lockers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Swimming Pools.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trash.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . View Protection and Plants.. . . . . . . . . . . . . . . . . . . . . . . . . . . . Violation of Law... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Window Coverings.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LEASING OF UNIT.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Restriction on Number of Units Leased. . . . . . . . . . . . . . . . . . . . . Lease Requirements.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rules.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common Area Facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assignment of Rents.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unlawful Detainer to Enforce Rules.. . . . . . . . . . . . . . . . . . . . . . . Grandfathered Tenants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pet Limitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Weight Limitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Grandfathered Pets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Visiting Dogs.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nuisance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Service Animals.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dangerous Animals.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Leash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sanitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VEHICLES AND PARKING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Management of Parking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exchange of Parking Spaces.. . . . . . . . . . . . . . . . . . . . . . . . . . . . Restricted Parking.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Commercial Vehicles... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Guest Parking.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Proper Operating Condition.. . . . . . . . . . . . . . . . . . . . . . . . . . . . Limited Operation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii

16 16 16 16 16 16 17 17 17 17 17 17 18 18 18 19 19 19 19 19 20 20 20 20 20 21 21 21 21 22 22 23 23 23 23 23 23 23 23 23 24 24 24 24 24 24 24 24 24

9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 ARTICLE 10 10.1 10.2 10.3

Electric Vehicles.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Motorcycles... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repair of Vehicles.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Washing of Vehicles.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fluid Leaks.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Damage and Theft.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Impeding Access... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Towing.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ARCHITECTURAL CONTROL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Prior Approval of Improvements.. . . . . . . . . . . . . . . . . . . . . . . . . Decorating Unit.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Specific Restrictions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a. No Washers and Dryers.. . . . . . . . . . . . . . . . . . . . . . . . . . . b. No Balcony Enclosures. . . . . . . . . . . . . . . . . . . . . . . . . . . . c. No Roof Alterations.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . d. Chandeliers and Ceiling Fans. . . . . . . . . . . . . . . . . . . . . . . e. Acoustical Limitations. . . . . . . . . . . . . . . . . . . . . . . . . . . . f. Solar Energy Systems.. . . . . . . . . . . . . . . . . . . . . . . . . . . . Handicap Access.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Submission of Plans... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Standards for Approval.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conditions for Approval.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Review Fees and Remodeling Agreement.. . . . . . . . . . . . . . . . . . . Board Decision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Permits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reconsideration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Engineering and Code Requirements. . . . . . . . . . . . . . . . . . . . . . . Diligent Construction.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Variances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notice to Neighbors.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Variance Not a Waiver... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-Complying Modifications.. . . . . . . . . . . . . . . . . . . . . . . . . . . Architectural Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mechanics Liens.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Waiver of Liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conflicts of Interest.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Estoppel Certificate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . COMBINING UNITS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Approval Requirement... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Prohibition Against Combination.. . . . . . . . . . . . . . . . . . . . . . . . . Owner Agreement to Terms.. . . . . . . . . . . . . . . . . . . . . . . . . . . . Indemnity.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rescinding Approval.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Effect of Combination... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . No Right to Divide.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ASSESSMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Purpose of Assessments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Regular Assessment.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Special Assessment.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv

24 24 24 25 25 25 25 25 25 25 25 26 26 26 26 26 26 26 27 28 28 28 29 29 29 29 30 30 30 30 31 31 31 31 31 31 31 32 32 32 32 32 33 33 33 33 33 33 34

10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 ARTICLE 11 11.1 11.2 11.3 11.4 11.5 11.6 11.7 ARTICLE 12 12.1 12.2 12.3
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12.4 12.5 12.6 12.7 12.8 12.9 ARTICLE 13 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 ARTICLE 14 14.1 14.2 14.3 14.4 14.5 14.6

Owner Vote on Assessments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . Emergency Situations.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deposit of Assessments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Disbursement of Funds.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reserves... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Television or Internet Assessment.. . . . . . . . . . . . . . . . . . . . . . . . ENFORCEMENT OF ASSESSMENTS.. . . . . . . . . . . . . . . . . . . . . . . . . Liability for Assessments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enforcement Rights.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreclosures.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Application of Proceeds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Waiver of Objection.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . No Offsets... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subordination of Certain Trust Deeds... . . . . . . . . . . . . . . . . . . . . No Exemption by Waiver of Use... . . . . . . . . . . . . . . . . . . . . . . . . Waiver of Exemptions.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Attorneys Fees.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . INSURANCE.. . . . . . . . . . . . . . . . . . . . . Association Insurance.. . . . . . . . . . . . . . Owner Obligation to Carry Insurance.. . . . Owner Waiver of Claims... . . . . . . . . . . . Management of Claims.. . . . . . . . . . . . . Choice of Contractor... . . . . . . . . . . . . . Choice of Insurance Company.. . . . . . . . . ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ... ... ... ... ... ... ...

35 35 35 35 36 36 37 37 37 38 38 38 38 38 38 38 39 39 39 40 41 41 41 42 42 42 42 42 42 42 42 43 43 43 43 43 44 44 44 45 45 46 46 46 46 47 47 47

ARTICLE 15 ENFORCEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.1 Owner Enforcement Rights... . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.2 Association Enforcement Rights.. . . . . . . . . . . . . . . . . . . . . . . . . a. Monetary Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b. Demand to Cure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Suspend Common Area Privileges.. . . . . . . . . . . . . . . . . . . . d. Suspend Voting Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . e. Judicial Enforcement. . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.3 Nuisance; Remedy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.4 Cumulative Remedies.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.5 Failure to Enforce Not a Waiver.. . . . . . . . . . . . . . . . . . . . . . . . . 15.6 Notice and Hearing Procedures.. . . . . . . . . . . . . . . . . . . . . . . . . . 15.7 Remedy at Law Inadequate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.8 Right of Action Against Buyer.. . . . . . . . . . . . . . . . . . . . . . . . . . . 15.9 Procedure for Internal Dispute Resolution... . . . . . . . . . . . . . . . . . 15.10 Pre-Litigation Dispute Resolution.. . . . . . . . . . . . . . . . . . . . . . . . 15.11 Judicial Reference.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.12 Attorneys Fees.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ARTICLE 16 16.1 16.2 16.3 16.4 16.5
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RIGHT OF ENTRY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Right to Enter.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notice of Entry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Avoid Unreasonable Interference. . . . . . . . . . . . . . . . . . . . . . . . . Emergency Entry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Refusal to Allow Entry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v

16.6 16.7 ARTICLE 17 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 ARTICLE 18 18.1 18.2 18.3 18.4 18.5 18.6 ARTICLE 19 19.1 19.2 19.3 19.4 19.5 19.6 19.7 ARTICLE 20 20.1 20.2 20.3 20.4 20.5 20.6 20.7 ARTICLE 21 21.1 21.2 21.3 21.4 21.5
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Damage by Association. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Owner Failure to Maintain.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 PROTECTION OF LENDERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Definition of Lender, Mortgage, Mortgagee. . . . . . . . . . . . . . . . . . Mortgagees Previously Existing Rights.. . . . . . . . . . . . . . . . . . . . . Filing Notices; Notices and Approvals. . . . . . . . . . . . . . . . . . . . . . Written Notification to First Mortgagees. . . . . . . . . . . . . . . . . . . . Exemption from Right of First Refusal. . . . . . . . . . . . . . . . . . . . . . Subordination of Assessment Lien to Mortgages.. . . . . . . . . . . . . . . Leasing of Unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Prior Approval of First Mortgagees. . . . . . . . . . . . . . . . . . . . . . . . Examination of Books and Records. . . . . . . . . . . . . . . . . . . . . . . . Taxes, Assessments and Charges.. . . . . . . . . . . . . . . . . . . . . . . . . Reserves for Replacement.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . No Priority Over Rights of First Mortgagees.. . . . . . . . . . . . . . . . . . Further Notice to Lenders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conflict.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Modifying or Amending.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LIMITATIONS OF LIABILITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Limited Personal Liability.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Association Not a Security Provider.. . . . . . . . . . . . . . . . . . . . . . . Duty to Defend.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Waiver by Members... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Association Not Responsible for Loss.. . . . . . . . . . . . . . . . . . . . . . Personal Injury or Property Damage Sustained Within a Unit.. . . . . . DAMAGE/DESTRUCTION TO IMPROVEMENTS. . . . . . . . . . . . . . . . . . Common Area Damage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Decision Not to Rebuild. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Elimination of Units. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duties of Board During Reconstruction.. . . . . . . . . . . . . . . . . . . . . Labor and Materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Special Assessment for Reconstruction.. . . . . . . . . . . . . . . . . . . . . Change of Condominium Plan.. . . . . . . . . . . . . . . . . . . . . . . . . . . CONDEMNATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notice.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common Action.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Condemnation Awards... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Substantial Taking.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Revision of Documents.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Status of Membership.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Change of Condominium Plan.. . . . . . . . . . . . . . . . . . . . . . . . . . . MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notice of Airport in Vicinity. .. . . . . . . . . . . . . . . . . . . . . . . . . . . Amendment.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Term of CC&Rs.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conflict.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . No Right of Partition... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi 48 48 48 48 48 48 48 49 49 50 50 50 50 50 51 51 51 51 51 51 52 53 53 53 53 54 55 55 55 55 55 55 55 55 56 56 56 56 56 57 57 57 57 57 57

21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 EXHIBIT A EXHIBIT B

Homestead Waiver.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Restrictive Agreements.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Attorneys Fees.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notices... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Headings... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Liberal Construction.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Number and Gender.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Severability... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . No Public Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Successor Association.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

58 58 58 58 58 58 58 58 59 59

Allocation Schedule for Assessments. . . . . . . . . . . . . Exhibit A - Page 1 Maintenance and Repairs. . . . . . . . . . . . . . . . . . . . Exhibit B - Page 1

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RESTATED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ESTABLISHING A PLAN OF CONDOMINIUM OWNERSHIP of WESTCHESTER WOODS HOMEOWNERS ASSOCIATION a California nonprofit mutual-benefit corporation THIS RESTATED DECLARATION of Covenants, Conditions and Restrictions Establishing a Plan of Condominium Ownership (CC&Rs) is made by all Persons who own Units in that certain real property planned residential development located at 8650 and 8710 Belford Avenue, Los Angeles, California and described as follows: Lot 2 of Tract No. 31907, in the City of Los Angeles, County of Los Angeles, State of California, as per Map recorded in Book 1042, Pages 46 and 47 of Maps in the Office of the County Recorder of Los Angeles. With these CC&Rs, in accordance with California Civil Code Section 1355(a), the members of Westchester Woods Homeowners Association (Association) hereby revoke the Declaration of Covenants, Conditions and Restrictions Establishing a Plan of Condominium Ownership which was recorded on July 20, 1992 as Instrument No. 92-1316026 against the above property, and any amendments thereto, and substitute in their place these CC&Rs, which shall bind the above property and: 1. 2. 3. Benefit Members. Be for the benefit of members of the Association. Benefit the Property. Be for the benefit, enhancement and protection of the desirability, value and attractiveness of the Project and each Unit therein; Bind Successors in Interest. Inure to the benefit of and be binding upon each successor in interest of the Association, each Owner, Tenant, Resident, and occupant of any portion of the Project as well as their respective heirs, personal representatives, grantees, Tenants, licensees, successors and assigns; and Run With the Land. Run with the land and be binding upon all parties having or acquiring any right, title or interest in the Project or any portion of the Project whether as sole owners, joint owners, Tenants, Residents, occupants or otherwise.

4.

NOW, THEREFORE, all Units as well as any conveyance, transfer, sale, assignment, rental, lease or sublease of a Unit or residence shall be deemed to incorporate the provisions of these CC&Rs. Each successor in interest is subject to all of the covenants, conditions and restrictions contained in these CC&Rs.

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ARTICLE 1 DEFINITIONS 1.1 Assessment shall mean a Regular Assessment or Special Assessment levied against an Owners Unit in accordance with these CC&Rs. 1.2 Association shall mean Westchester Woods Homeowners Association, a California nonprofit mutual-benefit corporation comprised of all Owners of Units. 1.3 Balcony shall refer to a balcony which is attached to a Unit and accessible through the Unit of which it is a part, as shown on the Condominium Plan. 1.4 Board shall mean the Board of Directors of the Association.

1.5 Building shall mean any building or structure which is part of the Improvements of the Project. 1.6 Bylaws shall mean the duly adopted Bylaws of the Association, including any amendments. 1.7 CC&Rs shall mean this Restated Declaration of Covenants, Conditions and Restrictions including any amendments. 1.8 Committee shall mean any committee appointed by the Board to assist in the management and administration of the affairs of the Association. 1.9 Common Area shall mean the entire Project except the interests owned separately by individual Owners. 1.10 Common Expenses shall mean the costs, expenses and charges in connection with maintaining, managing, insuring, operating, repairing and replacing the Common Areas as the same may be estimated from time to time by the Board including, but not limited to, any amounts reasonably necessary for reserves for anticipated long-term maintenance, repair and replacement of capital Improvements upon the Common Areas, contingencies and the service obligations of the Association, and any other obligations of the Association as described in these CC&Rs or by law. 1.11 Condominium shall mean a condominium as defined in Sections 783 and 1351(f) of the California Civil Code, and shall be an estate in real property consisting of (i) a separate fee estate in the air space and interior surfaces within a Unit as described in the Condominium Plan; (ii) an undivided interest in the Common Area; (iii) any exclusive or nonexclusive easements conveyed in the CC&Rs, the Condominium Plan, or the deed to the Condominium; and (iv) membership in the Association. 1.12 Condominium Plan shall mean the recorded plan for the subdivision of the Project into condominiums, which was recorded on July 20, 1992 as Instrument No. 92-1316025. 1.13 Directors. Director shall mean any member of the Associations Board of

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1.14 Exclusive Use Common Area shall mean any portion of the Common Area which serves a single Unit, whether located inside or outside the boundaries of the Unit. 1.15 Governing Documents shall mean these CC&Rs, the Articles of Incorporation, Bylaws, Rules, Condominium Plan, any amendments to these documents, and such other written documents, reports, maps, schedules and exhibits as are required by law to be recorded, filed or issued in connection with the Project. 1.16 Improvements shall mean all Buildings, structures, and other physical components of the Project. 1.17 Officer shall mean the president, vice president, secretary, treasurer, and any other officer of the Association, as defined in the Bylaws. 1.18 Owner shall mean any Person who holds an ownership interest in a Unit subject to these CC&Rs that is recorded with the Los Angeles County Recorder. The ownership interest shall be either title ownership or an equitable interest under a contract to purchase the property, but excluding any Person having an interest in the property merely as security for the performance of an obligation. 1.19 Person shall mean a natural person, corporation, partnership, trust, association or other similar entity as defined by law. 1.20 Project shall mean that certain real property development known as Westchester Woods against which these CC&Rs are recorded, together with all Improvements. 1.21 Regular Assessments shall mean assessments levied against Owners to defray expenses incurred by the Association each fiscal year to carry out its duties under the Governing Documents. 1.22 Resident shall mean an Owner, resident, guest, invitee, Tenant, or other person residing in or otherwise in possession of all or any portion of a Unit. 1.23 Rules shall mean any rules and regulations adopted by the Board for the general health, welfare, comfort, and safety of Owners and to interpret and implement these CC&Rs. 1.24 Special Assessments shall mean assessments levied from time to time against Owners for capital Improvements, unexpected expenses, emergency repairs, reimbursements, or any other expense as provided for in the Governing Documents. 1.25 Tenant shall mean any Person to whom possession of a Unit has been given by an Owner. Tenant shall not include individuals co-residing in the Unit with the Owner. 1.26 Unit shall mean those elements of a Condominium which are not owned in common with other Owners. The Project contains 106 Units. a. Boundaries. The lateral boundaries of each Unit are the interior surfaces of its perimeter walls, windows, window frames, doors and door 3

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frames at the limits of the horizontal dimensions shown on the Condominium Plan. The lower vertical boundaries of each Unit are the interior surfaces of its floors and the upper vertical boundaries of each Unit are the interior surfaces of its ceilings. Each Unit includes the surfaces so described; the surfaces of any bearing walls, columns and beams lying within its boundaries; the respective portions of the Building and improvements lying within its boundaries (except as stated in Subsection B, below); and the airspace encompassed by its boundaries. b. Exclusions. The following are not part of the Unit: Fire escapes, bearing walls, columns, vertical supports, floors, roofs, foundations, beams, pipes, ducts flues, chutes, conduits, wires, and other utility installations, wherever located, except the outlets thereof when located within the Unit, and except any surface noted herein which may form a part of an element of a Unit. Interpretation. In interpreting deeds and plans, the existing physical boundaries of a Unit, or of a Unit reconstructed in substantial accordance with the Condominium Plan, shall be conclusively presumed to be its boundaries, rather than the metes and bounds, or other description, expressed in the deed or Condominium Plan, regardless of settling or lateral movement of a Building and regardless of minor variance between boundaries shown on the Condominium Plan or in the deed and those of a Building.

c.

1.27 Vehicle shall mean automobiles, trucks, recreational vehicles, campers, trailers, motorcycles, boats or any similar type of mechanical device used for transportation. 1.28 Definitions of Other Terms: unless the context clearly requires otherwise, all other terms used herein are intended to be defined as set forth in Section 1350, et seq. of the Civil Code of the State of California. ARTICLE 2 THE ASSOCIATION 2.1 Management of the Association. The management and control of the Association and the Project shall be the responsibility of the Board of Directors. 2.2 Powers of a Nonprofit Corporation. The Association shall have all of the powers of a nonprofit corporation organized under the laws of the State of California operating for the benefit of its Owners. 2.3 a. Specific Powers of the Association Enforcement of Governing Documents. The Association, through its Board, shall have authority to enforce the provisions of the Governing Documents, provide for the general health, welfare, comfort and safety of the residents, and interpret the Associations Governing Documents.

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b.

Enactment of Rules. The Board may adopt, amend, or repeal Rules for the use, occupancy and maintenance of the Project; for the general health, welfare, comfort, and safety of Owners; and to interpret and implement these CC&Rs, using the following procedure or any other procedure required or provided as an alternative by statute. (1) Applicability. This Subsection (1) shall apply, to the extent required by law, to Rules that relate to (i) use of the Common Area, Exclusive Use Common Areas, or Units; (ii) architectural modifications by the Owners, including procedures for architectural approval; (iii) Owner discipline, including fine schedules and procedures for imposing discipline; (iv) standards for payment plans for Owners delinquent assessments; (v) dispute resolution procedures; and (vi) election procedures. (a) Distribution to Members. The proposed Rules shall be distributed to the Owners at least 30 days before an open Board meeting at which the Board will vote on adopting the policy. The distribution shall include a notice of the meeting and a description of the purpose and effect of the proposed Rules. Provided, notice is not required if the Board determines that an immediate rule change is necessary to address an imminent threat to public health or safety, or imminent risk of substantial economic loss to the Association. Vote on Rules. At the scheduled Board meeting, the Board shall vote on adoption, amendment or repeal of the Rules after considering any comments received by the Owners on this issue. Approved Rules. Within 15 days of approving the Rules, the Association shall distribute notice of the Rules change to the Owners. Owner Vote to Reverse Rule Change. A Rule whose adoption is subject to this Subsection (1) may be overturned by the affirmative vote of at least a majority of the Owners on written request signed by the Owners of at least 5% of the Units delivered to the Association not more than 30 days after notice of the Rule change is delivered to the Owners. A Rule which is reversed according to this Section may not be re-adopted for one year after the date of the Owner vote reversing the rule change. However, the Board may at any time adopt a different Rule on the same subject as the Rule change that had been reversed.

(b)

(c)

(d)

(2)

Exclusions. Subsection (1), above, does not apply to (i) Common Area maintenance; (ii) decisions on a specific situation that are not intended to apply generally; (iii) assessment rates; (iv) Rules changes or the issuance of other documents that are required by law or that repeat existing law or the Governing Documents, if 5

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the Board has no discretion as to the substantive effect of the change; or (v) the adoption of any Rules where the procedures outlined in Subsection (1) are not required by law, including without limitation Civil Code Sections 1357.100 et seq., and any amendments or successor statutes thereto. c. Incur and Pay Expenses. The Association shall provide for, incur, and pay for the operational expenses of the Association including, but not limited to, legal and accounting services; utilities; insurance; management services; vendor services such as security, landscaping, garbage collection, pest control, swimming pool maintenance, cleaning, painting and other such services; maintenance, repair, reconstruction and replacement of all or any portion of the Common Areas or the personal property acquired by the Association; supplies and materials; and such other services for the use, enjoyment and protection of the Project and its residents as the Board may determine from time to time are reasonable, proper or desirable. Charge Fees. The Board shall have the authority to charge reasonable deposits and fees for (i) use of any Common Area facilities, including parking spaces; (ii) move-in and move-out by an Owner or Tenant; (iii) Unit remodeling; (iv) Building water shut-downs; and (v) such other purposes as the Board may deem appropriate. (1) (2) The Board shall not charge Owners more than it charges the general public for the use of any particular facilities. The Association shall not use assessment income for the maintenance, repair or operation of any recreational facility which is subject to an admission or other fee for its use, until all income collected from such admissions and fees has been applied towards such maintenance, repair or operation.

d.

e.

Pay Taxes and Assessments. The Board shall have the authority to pay taxes and assessments levied against the Association or the property of the Association. Borrow Money. The Association shall have the authority to borrow and repay monies as may be needed in connection with the discharge of the Associations duties, and to pledge or assign assessment rights and other Association property as security for the repayment of such borrowed money provided, however, that any loan in excess of five percent of the budgeted Regular Assessments shall require approval by a majority of a quorum of the Owners whose voting rights have not been suspended. The Board shall have the authority to enter into such loans at equal or better terms, duration and conditions as available from primary money center institutions, including government, financial institutions or private parties. Represent Association in Litigation. The Board shall have the authority to institute, defend, settle or intervene on behalf of the Association in litigation, arbitration, mediation or administrative 6

f.

g.

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proceedings in any capacity necessary to represent the interests of the Association. h. Property of Association. The Association may acquire and hold tangible and intangible personal property and may dispose of the same by sale or otherwise. Foreclose and Hold Title. The Association, through its Board, shall have the authority to lien and foreclose upon any Unit for non-payment of Assessments, and to take title to the Unit. Delegation to Manager. The Board may delegate any of its duties, powers or functions to any qualified person or management company to act as manager; provided, however, that the manager shall act at the direction and under the supervision of the Board. Approval Revocable. Any consent, approval or authorization given to an Owner as permitted in these CC&Rs by its Board, or any person or agent authorized by the Board, shall be revocable at any time.

i.

j.

k.

2.4 Limitation on Professional Management Contract. Any agreement for professional management of the Project shall provide that the term of any such contract shall not exceed one year, without approval of a majority of a Quorum of the Owners. 2.5 Limitations on Sale of Property. In no event may the Board sell during any fiscal year property owned by the Association having an aggregate market value in excess of five percent of the Associations budgeted gross expenses for that year without the consent of a majority of a quorum of the Owners whose voting rights have not been suspended. 2.6 Limitations on Capital Improvements. The Board may not make capital Improvements to the Common Areas in any one fiscal year in excess of five percent of the Associations budgeted gross expenses for that year without the consent of a majority of a Quorum of the Owners whose voting rights have not been suspended. 2.7 Vendor Contract Limitations. No contract for services shall be entered into which binds the Association for a period in excess of one year without the vote or written consent of a majority of a Quorum of the Owners whose voting rights have not been suspended. The following exceptions may exceed one year without a vote of the membership: a. Public Utility Contract A contract with a public utility company if the rates charged for the materials or services are regulated by the Public Utilities Commission provided, however, that the term of the contract shall not exceed the shortest term for which the supplier will contract at the regulated rate. Fire and Burglary. Contracts for terms up to three years to lease or service burglar and/or fire alarm equipment or provide protective services. 7

b.

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c.

Bulk Cable Service. Contracts for terms up to five years to provide cable, internet, telecommunications, or satellite communications service. Laundry Machines. Contracts for laundry machines for terms of up to ten years. Terminable Within One Year. Contracts for more than one year that are terminable by the Association at any time after no longer than one year without cause, penalty or other obligation upon no longer than 90 days written notice of termination to the other party.

d. e.

2.8 Nonprofit Character of Association. Notwithstanding anything contained in these CC&Rs to the contrary, the Association shall not engage in any activity, or cause the same to be done, which may jeopardize the nonprofit character of the Association. ARTICLE 3 MEMBERSHIP 3.1 Membership. Each Person shall automatically become a member of the Association upon obtaining an ownership interest in a Unit and shall remain a member until he or she ceases to have an ownership interest in a Unit. a. Membership Appurtenant to Units. Membership in the Association is for the benefit of and appurtenant to the Unit to which it relates and may not be separated from the ownership of the Unit. No Membership for Security Interests. Membership does not include persons or entities who hold an interest in a Unit merely as security for the performance of an obligation. No Membership for Tenants. Membership privileges shall be extended to Tenants as provided for in these CC&Rs but Tenants shall not be members nor shall they have the right to vote. No Separate Transfer of Membership. No Owner may transfer, pledge or alienate in any way his or her membership in the Association, except upon the transfer of the fee interest in the Unit to which it is appurtenant and then only to the transferee of such fee interest.

b.

c.

d.

3.2 Proof of Membership. No one may exercise the rights of membership unless he or she owns a Unit in the Association. The Board may require a Person to provide proof of ownership before exercising membership rights, which proof shall be in the form of a recorded deed or, for purchases in the preceding 30 days, a completed escrow closing statement. 3.3 Trusts. If title to a Unit is held in the name of a trust, the trustee(s) of the trust shall be considered to be the Owner of the Unit for purposes of membership in the Association and exercise of any other Owner rights and privileges.

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3.4 Voting Rights. In all matters submitted for a membership vote, Association members whose voting rights have not been suspended shall be entitled to one vote per Unit regardless of the number of Owners having an interest in the Unit. The right to vote may not be severed or separated from the Unit to which it is appurtenant. Any sale, transfer or conveyance of ownership shall operate to transfer the appurtenant vote. 3.5 Inspection of Records. Owners shall have the right to inspect records of the Association as provided for in the Bylaws. 3.6 Obligation to Follow Governing Documents. Owners shall be obligated to follow the Associations Governing Documents and to ensure that their family, guests, and Tenants abide by the Governing Documents. 3.7 Supervision of Minors. Owners shall be liable for the conduct, behavior, and proper supervision of minors residing at or visiting their Units and/or using the Associations Common Areas. 3.8 Provide for Security. Owners shall be responsible for their own security and shall take appropriate measures to ensure the security of the persons and property of themselves as well as that of their family, Tenants and guests. Owners may not rely on any security measures provided by the Association. 3.9 Purchase Subject to Violations. Buyers shall take ownership of Units subject to any architectural violations of the CC&Rs or Rules which may exist concerning the Unit, whether or not such violations were disclosed prior to transfer of title and whether or not the Association knew of the violations at the time of transfer of title. Such buyers shall be liable for correcting such violations upon demand by the Association. Assessments, fines, and other charges not secured by a lien on the Unit prior to transfer of title are exempted from this provision. 3.10 Obligation to Provide Access. Owners shall provide the Association with a means to access their Unit in an emergency or to perform necessary repairs, for example by providing the Association either a copy of their key, or the name and phone number of a person who can provide access to the Unit if the Owner is not available. In the event an Owner fails to provide access to his or her Unit, the Association may engage the services of a professional locksmith to access the Unit. The cost of such services shall become an Assessment against that Unit. If in the event of an emergency the Association is unable to gain access to the Unit, the Owner shall pay the cost of all damage and shall have no right of action against the Association or its representatives for trespass or for any damage resulting from a forced entry into the Unit. In addition, unless they acted with gross negligence or intentional disregard, neither the Association nor its officers, Directors, or agents shall be responsible to any party for any damages resulting from the Associations failure to enter a unit where the Owner did not provide the Association with a means of access. 3.11 Delivery of Documents to Prospective Buyers. It shall be the responsibility of Owners and not the Association to provide to purchasers of their Units, before the close of escrow, documents as required by Section 1368 of the Civil Code. Such documents generally include the Articles, CC&Rs, Bylaws, Rules, the current operating budget, a summary of the Associations reserves, the Associations
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assessment enforcement procedures, the most recent annual financial statement, a summary of the Associations insurance, and such other financial documents as may be provided for in Section 1365 of the Civil Code. Owners may purchase copies of such records from the Association. In addition, Owners shall give to prospective buyers notice of any existing violations or non-compliance matters involving their Units. 3.12 Notice of Transfer of Ownership or Occupancy. On or before the assignment, sale, quitclaim or other transfer of their Units, and on or before any change in occupancy of their Unit (excluding Owners roommates), Owners shall notify the Association in writing of the name and address of the transferee, or new occupant, expected date of transfer, nature of the transfer, and relationship of new occupant to Owner. 3.13 Notice of Mortgage. If required by the Association, Owners must notify the Association of (i) the name and address of any mortgagee holding a mortgage on their Unit and (ii) the release or discharge of any such mortgage. ARTICLE 4 PROPERTY RIGHTS AND EASEMENTS 4.1 Ownership of Common Areas. The Common Areas shall be owned by the Owners as tenants-in-common according to their percentage interest, which shall be a 1/106th undivided interest per Unit. 4.2 Ingress, Egress and Support. Owners shall enjoy a nonexclusive easement appurtenant to and for the benefit of their Units for ingress, egress and support over, across and through the Common Area and every portion of any Unit required for the structural support of the Unit, subject to the Governing Documents and applicable law, including without limitation the Associations ability to: a. b. c. Reasonably limit the number of guests or other persons using the Common Area; Cause the construction, alteration or removal of Improvements on the Common Area; and Reasonably restrict access to roofs, maintenance facilities or areas, landscaped areas, and similar areas of the Project.

4.3 Easement of Enjoyment. Owners shall have a nonexclusive easement of use and enjoyment of the Common Areas subject to the rights of the Association as described in these CC&Rs, and subject to the Associations right to reasonably limit the number of guests of Owners. 4.4 Easement for Encroachment. Each Unit and the Common Area has an easement over all adjoining Units and Common Area to accommodate any encroachment for any fence or wall due to engineering errors, errors in original construction, settlement or shifting, reconstruction, remodeling, repairs, or any other similar cause. There shall be easements for the maintenance of said encroachments so long as they shall exist, and the rights and obligations of Owners shall not be altered in any way by said encroachment, settling or shifting; provided, however,
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that in no event shall a valid easement for encroachment be created in favor of an Owner or Owners if the encroachment occurred due to or the willful act or acts of an Owner or Owners. 4.5 Utility Rights and Duties. Owners shall have the duty to maintain and repair and are hereby granted an easement to enter the Common Areas as may be necessary to maintain and repair sewer lines, storm drains, water, gas, utility lines, etc. which exclusively service their individual Units provided that any damage to the Common Areas shall be repaired at such Owners sole expense and in a timely fashion. The Association is granted an easement to enter Units as is necessary to maintain and repair Common Area utility lines provided that any damage to an Owners Unit shall be repaired at the Associations sole expense and in a timely fashion. 4.6 Prohibition Against Severance. Owners shall not have the right to sever their Units from their membership rights or from their percentage interest in the Common Area. Membership rights, interest in the Common Area and fee title to the respective Units shall conclusively be deemed to be conveyed, transferred or encumbered with its respective Unit even though the description in the instrument of conveyance or encumbrance may refer only to the Unit. 4.7 No Power to Encumber Real Property. The real property assets of the Association may not be encumbered as a security for debt. 4.8 Association Easement. The Association shall have a nonexclusive easement in, to, and throughout the Common Area and its Improvements to perform its duties and exercise its powers. 4.9 Conveyances; Limitation on Granting Easements. The Association, through its Board, shall have the authority to assume or otherwise pay off encumbrances, and to acquire, hold title to, lease and convey, with or without consideration, real and personal property and interests, including but not limited to easements. However, the approval of at least 67% of the Owners is required before the Board may grant exclusive use of any portion of the Common Area to any Member, except as allowed by statute and except for the following reasons: a. b. c. d. To eliminate or correct engineering errors in documents recorded with the County Recorder or on file with a public agency or utility company. To eliminate or correct encroachments due to errors in construction of any Improvements. To fulfill the requirement of a public agency. To transfer the burden of management and maintenance of any Common Area that is generally inaccessible and is not of general use to the membership at large of the Association.

Any such Owners vote shall specify whether the Association will receive any monetary consideration for the grant and whether the Association or the transferee will be responsible for providing any insurance coverage for exclusive use of the Common Area. Such vote shall be conducted by secret written ballot, using the procedures for
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ballots, proxies, inspectors of election, tabulating the vote, and storage and availability of ballots set forth in the Bylaws. ARTICLE 5 MAINTENANCE AND REPAIR 5.1 Maintenance Standards. For purposes of this Article and Exhibit B to these CC&Rs, maintenance shall include, without limitation, cleaning; keeping a clean, safe and sanitary condition as advisable to preserve the attractive appearance of each Condominium and the Project and to protect their values; and ensuring that the area or item does not pose a threat to the health, safety or welfare of other Owners. The Board shall have the power to determine the maintenance standards. 5.2 Association Responsibility for Common Areas. Except as otherwise provided in these CC&Rs, the Association, through its Board, shall maintain, repair and replace the Common Areas in first-class condition and in accordance with all requirements of the City and other applicable codes or governmental requirements. 5.3 Owners Responsibility for Units. Except as otherwise provided in these CC&Rs, the Owners shall maintain their Units in a sanitary condition and in good repair, in accordance with all requirements of the City and other applicable codes or governmental requirements. 5.4 Associations and Owners Maintenance and Repair Responsibility. Each partys responsibility for painting, maintenance and repairs to specific elements of the Project is as stated in Exhibit B attached hereto. 5.5 a. Termites and Pests. Owners. Owners are responsible for the maintenance and repair of their personal property and their Unit as required to control the presence of or damage caused by insects, rodents, or wood-destroying pests or organisms. Association. The Board has the authority and the duty to treat and/or repair Common Areas infested or damaged by insects, rodents, wood-destroying pests or organisms, etc. and to special assess the membership for the cost of the treatment and/or repairs. Neither the Association, the Board, or its officers, agents or employees shall be liable, absent gross negligence or intentional acts, to any Owner, family member, guest, invitee or lessee for any damage caused by the treatment. Termite Clearance Certificate. If an Owner wishes to obtain a termite clearance certificate for any purpose, the Owner shall be solely responsible for any and all costs associated with obtaining the certificate, including without limitation the costs of maintenance and repair of the Unit, Exclusive Use Common Area, or Common Area which may be necessary to obtain the termite clearance certificate.

b.

c.

5.6 Power to Vacate Unit. If necessary, the Board has the authority to vacate a Unit to make repairs to the Associations Common Areas or to treat termite
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or other pest infestation. Any and all lost rent or other income and costs of food, lodging, and other associated expenses shall be borne by the Owner and not by the Association. The Association shall have the duty to diligently make repairs so as to return occupancy as quickly as possible. a. Notice. The Association shall give notice of the need to temporarily vacate a Unit to the Residents and Owners not less than 15 days nor more than 30 days prior to the date of the temporary relocation. The notice shall state the reason for the temporary relocation, the date and time of the beginning of treatment or repairs, the anticipated date and time of termination of treatment or repairs, and that the Residents will be responsible for their own accommodations during the temporary relocation. Manner of Notice. Notice shall be sent to all Residents by either first-class mail or personal delivery, and to all Owners living off-site at the address shown on the books of the Association. Duty to Vacate. Owners shall ensure that Residents vacate their Units. In the event any Owner fails to cause the Residents to vacate, the Association shall have the right to levy Special Assessments against the Owner for all expenses and reasonable attorneys fees incurred by the Association removing such Residents from the Unit as well as any additional costs caused by the delay. Association Repairs of Damage. Where Association is Responsible for Damage. If the Association is responsible for repairs to damage to a Building or other Common Area, the Association shall make the repairs. Damage During Association Repairs. The Association shall repair damage caused by Common Area repairs made by the Association. In this situation, the Association shall return the Unit, at its option, to either (i) its condition as originally constructed or (ii) its condition immediately prior to the damage and the Unit owner shall make any additional repairs or upgrades at his or her expense. Balcony Damage. The Association may cause any damage to Balconies or a Buildings exterior surfaces to be repaired and any related expenses for which the Unit Owner is responsible shall be assessed against the Owner.

b.

c.

5.7 a.

b.

c.

5.8 Limitation of Association Liability for Damage. Neither the Association nor its Officers, Directors, Committee members, employees or agents shall be responsible to any Owner or Owners family, Tenants or guests for any loss or damage to person or property suffered by reason of water, mold, fungus, fire, smoke, explosion, electricity, dust, sand, insect or rodent infestation, etc. or any other source unless the damage or loss was caused by the gross negligence or willful misconduct of the Associations Officers, Directors, Committee members, employees, or agents. 13

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5.9 Maintenance of Unit Alterations. Owners shall, at their sole expense, maintain, service and repair any improvements or alterations to the Unit or its surrounding areas made by any current or prior Owner of the Unit, or by any other party other than the Association or its agents as part of remodeling or repairing the Unit. 5.10 Damage During Unit Alterations. Owners shall, at their sole expense, maintain, service and repair any damage caused by the Owner in the process of remodeling, maintaining, repairing, or replacing Improvements, unless otherwise provided in these CC&Rs. 5.11 Damage to Others Sustained Inside Owners Unit. In the event of personal injury or property damage sustained by any person while physically within an Owners Unit, that Owner shall, at his cost, fully indemnify, hold harmless and defend against any claim for that injury, the Association and the other Owners (excluding other Owners whose own negligence or intentional act caused or contributed to the injury or damage). 5.12 Owner Liability for Damage. Individual Owners, and not the Association, shall be responsible for all damage or loss to the Improvements or personal property to the extent the loss or damage (i) originated from within an Owners Unit or Balcony, including without limitation water intrusion, fire, insect or rodent infestation, or (ii) was caused by the acts, omissions or willful misconduct of such Owners, Tenants, guests, invitees, or their family or pets, including damage. With respect to any such loss or damage: a. To the Association. The Owner shall be liable to the Association for all expenses incurred in mitigating or repairing damages to the Common Areas, Exclusive Use Common Areas, Association property, and other Units. The Association may cause the damaged property to be repaired or replaced and the cost shall be charged as a Special Assessment against the Owner; and To Others. For any damage to the Owners own property and the Units and property of others. Insurance. The Owner shall make claims against their own insurance company and not against the Associations insurance.

b. c.

5.13 Owner Repair of Damage; Notice. Except as otherwise provided in these CC&Rs, the Owner shall make all repairs and perform all mitigation for any damage or loss for which the Owner is responsible. Owners shall notify the Association of the nature and extent of any repairs or improvements made or caused to be made to their Unit costing more than$2,000.00. ARTICLE 6 GENERAL RESTRICTIONS 6.1 a. Balconies. Ledge. No plants or hanging vines shall be permitted to extend over the edge of any Balcony except as provided for in the Rules. Nor shall 14

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any item be placed temporarily or permanently on any ledge except as provided for in the Rules. Laundry, rugs or other items may not be draped over any Balcony wall. b. Dangerous Acts. No Owner shall throw or permit to be swept or thrown from his or her Unit, or its doors, windows, or Balconies any dirt, water, objects, or other substance of any kind whatsoever. Unsightly Objects. Owners shall have the right to furnish their Balconies with outdoor furniture. However, unsightly objects (including but not limited to dead plants, laundry, mops, appliances and bicycles) may not be placed or stored on a Balcony where they may be seen by other Owners or by the public in general. Owners shall maintain in good condition and repair and adequately painted or otherwise finished all furnishings or other items located on the Owners Balcony. View Obstructions. No vegetation or other obstruction shall be planted or maintained upon any Balcony which shall unreasonably obstruct the view from any other Unit. In the event of a dispute between Owners regarding the obstruction of a view from a Unit, such dispute shall be submitted to the Board, whose decision in such matters shall be binding. However, if the obstruction allegedly affects only one Unit, the Board may, at its option, defer resolution of the issue to the affected Owners. Any item or vegetation which, in the opinion of the Board, creates an unreasonable view obstruction shall be removed or pruned to the Boards satisfaction. Watering Plants. No Owner shall water his or her plants or use water on his or her Balcony in such a way as to cause water to drip, spray, or flow onto the Balcony or the windows of another Unit. Balcony Weight Limitations. No Owner shall allow the placement of unreasonable weight loads on his or her Balcony. The number and size of plants shall be regulated by the Rules. No refrigerators, freezers or other appliance shall be permitted on Balconies.

c.

d.

e.

f.

6.2 Barbecues. Barbecues are prohibited except for propane barbecues with a switch to turn off the flame in receptacles designed for such purposes. The hours of operation, type of equipment and rules regarding their operation shall be in the Rules. Residents shall take reasonable precautions to minimize smoke from entering other Units. 6.3 Flammable Materials. Under no circumstances may explosives, fireworks, or highly flammable or highly corrosive materials be stored by Owners in parking spaces, Common Areas, Exclusive Use Common Areas, or Units, except for flammable or corrosive materials used for household purposes in appropriate quantities. 6.4 Harassment. Owners shall not engage in any abusive or harassing behavior, either verbal or physical, or any form of intimidation or aggression directed at other Owners, Residents, guests, occupants, invitees, management, or vendors, or their agents or employees.
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6.5 Health Hazards. Owners shall not permit conditions in their Units, Balconies, storage lockers, parking spaces or Exclusive Use Common Areas which constitute a health, safety or fire hazard. 6.6 Insurance. No Owner shall permit anything to be done or kept in or on any Unit or any Common Area which will increase the rate of insurance in or on any other Unit or the Common Area, or which would result in uninsurability or in the cancellation, suspension, modification or reduction of insurance in, on or covering any other Unit, Common Area or item of personal property within the Project. If, by reason of the occupancy or use of any portion of the Project by any Owner, the rate of insurance on any policy held by the Association shall be increased, such Owner shall become personally liable to the Association for any increase in insurance premiums caused thereby and the cost of the increase shall be assessed to such Owner and his or her Condominium as a Special Assessment. 6.7 Jacuzzis and Hot Tubs. No jacuzzi or hot tub may be installed in any Unit without the written approval of the Board, except for spa tubs in bathrooms that fit within the footprint of the originally installed tub. All such installations shall meet the sound rating requirements specified by the Architectural Committee. 6.8 Laundry. No clothesline shall be erected or maintained.

6.9 Limit on Purchase of Units. No Owner may have a recorded ownership interest in more than two Units. Provided, any Owner who has an ownership interest in more than two Units on the date these CC&Rs are recorded shall be grandfathered in. Such Owner shall automatically be granted approval under this Section to continue to hold title to all such Units. In all other respects, obtaining title to additional Units shall be subject to all other terms and conditions of this Article. 6.10 No Drilling. The following are prohibited at the Project: drilling, quarrying, mining operations, oil wells, tunnels, mineral excavations, shafts of any kind, derricks, or other structures designed for use in boring for water, oil or natural gas. 6.11 Notice of Danger. If an Owner observes any condition, conduct or activity within any portion of the Project which the Owner believes is likely to cause or to result in serious injury to the health or safety of any resident or occupant within the Project unless immediate corrective action is taken, the Owner shall immediately notify the Associations Board or manager so that the appropriate action can be taken. 6.12 6.13 Nudity. Public displays of nudity are prohibited. Nuisance. a. Prohibited. No one may cause or permit to be caused anything which constitutes a nuisance. (1) To constitute a nuisance the activity must be unreasonably noxious or offensive, cause an unreasonable disturbance or annoyance, be unreasonably injurious to health, indecent, 16

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or create an unreasonable obstruction to the free use of property. Residents with allergies or sensitivities must, at their own expense, take precautions to protect themselves against commonplace levels of noise, odors, dust, smoke, gases, pollen, or other environmental pollutants. (2) Because a nuisance is largely subjective, the Association is not obligated to become involved in disputes where the alleged nuisance causes mere inconvenience rather than substantial interference. If, in the Boards opinion, a nuisance exists, the Board may take legal action or seek any other remedy provided for by law and/or these CC&Rs.

b.

Liability for Nuisance. If a condition exists in an Owners unit or an Owner does anything with respect to his Unit or use his Unit in a way that unreasonably increases the level of noise or sounds transmitted to another Unit, or which causes a continual unreasonable disturbance or annoyance to any other Unit Owner, he shall be required to take at his own expense all reasonable measures to deaden, insulate and otherwise decrease the level of such noise or sounds to the minimum level reasonably possible so as not to cause an interference with the use and enjoyment by other Unit Owners of their Units.

6.14 Obstruction of Common Areas. No Common Area shall be obstructed or used for other than its intended purpose except as designated by the Board. 6.15 Occupancy Disclosure. Owners shall promptly provide the Association with the names of all Unit Residents on any change in occupancy. 6.16 Occupancy Restriction. The maximum number of persons who may permanently reside in any Unit is one person plus two additional persons per bedroom. Permanently reside shall mean the use, residency or occupancy of any Unit by any person for more than 30 consecutive days or more than 60 aggregate days, whether or not consecutive, in any one calendar year. 6.17 Pests. No Owner shall permit any thing or condition to exist upon any portion of the Project which shall induce, breed or harbor infectious plant diseases or noxious insects or vermin. 6.18 Power tools. No power tools, welding equipment, or carpentry shops shall be maintained or used within the Project without the Associations prior written consent, except for ordinary hand-held power tools used in a way that does not create a nuisance. 6.19 Residential Use. No Owner shall use or permit his or her Unit or any portion of it to be occupied or used for any purpose other than a private residence. Notwithstanding the foregoing, Owners may use their Units for limited business activities as long as all of the following criteria are met: a. Primarily Residential. The Unit continues to be used primarily for residential purposes. 17

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b.

Advertisement Limitations. The business activity does not involve any advertisement or other listing available to the public or any public sector which includes the address of the Unit or the Project or the phone number of the Associations business office. No Employees, Vendors, Etc. The business activity does not involve any employees, clients, customers, vendors, contractors, subcontractors, business associates, or other visitors entering the Unit or the Common Areas. No Excessive Deliveries. The business activity does not involve deliveries or pick-ups of mail or packages which in the Boards determination are in excess of a level normal for residential occupancy. No Manufacturing or Storage. No manufacturing of any kind and no storage of inventory or other items related to the business takes place in the Unit or the Common Areas. Insurance. The Owner obtains and maintains appropriate and adequate insurance coverage, naming the Association as an additional insured, including but not limited to comprehensive general liability insurance, in order to insure against any type of injury, such as property damage or personal injury occurring within the Owners Unit or Common Area, and against any cause of action whatsoever arising or relating to the operation of a business from the Unit. Compliance with Laws. The business activity is not illegal, does not violate any local ordinances, and complies with all applicable business license requirements.

c.

d.

e.

f.

g.

This Section shall not be construed to prohibit the operation of family day care homes on site, to the extent authorized and properly permitted by all applicable local governmental agencies, and to the extent California statute prohibits these CC&Rs from restricting their operation at the Project. 6.20 Roof Restricted Access. Owners and their families, Tenants, guests, employees, and agents are prohibited from entering onto the Associations roofs without the prior written consent of the Board. 6.21 Sale of Unit. Open houses, brokers caravans and other matters relating to the sale of a Unit shall be provided for in the Rules. 6.22 a. Satellite Dishes, Antennas and Electrical Wiring. Common Area Installations. No antennas or satellite dishes for transmitting or receiving radio signals or any other form of electromagnetic radiation may be installed on any portion of the Common Areas or attached to a Building unless authorized by the Board. Installations on Balconies. No satellite dish more than one meter (approximately 39 inches) in diameter shall be installed anywhere in the 18

b.

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Project. Installations on Balconies which otherwise conform to this Section shall be as regulated by the Board. c. d. Size. Owners shall install the smallest dish possible to receive signal for the service provider they have chosen. Indemnification. The owner of any Unit receiving a signal from installation of any antenna or satellite dish shall indemnify, defend and hold harmless the Association and its Officers, Directors, Committee members, employees and agents from all demands, costs, including reasonable legal fees and expenses, claims, damages and causes of action arising out of such installation. Maintenance. Owners shall be responsible for all maintenance and repairs to Common Areas or other Units associated with antennas and satellite dishes connected to their Unit. Any antennas or satellite dishes which become a safety hazard shall be removed at the Owners expense. Removal. Owners must, at their sole cost and expense, remove all antennas and satellite dishes no longer providing service to the Unit. This requirement applies to antennas and dishes installed by prior owners of the Unit.

e.

f.

6.23 Signs. No sign, poster, flag, banner, notice, nameplate, card or advertisement of any kind may be displayed to the public view on or from any Unit or in or on any Common Area except as allowed by law or permitted in the Associations Rules. Owners may display one sign in a Unit window which is of reasonable dimensions and design, advertising that the property is for sale or lease, as allowed by law and subject to any restrictions in the Rules. 6.24 Smoking. Smoking is prohibited in all Common Areas.

6.25 Storage Lockers. Storage lockers may only be used as provided for in the Rules. Under no circumstances may explosives, fireworks, or highly flammable or highly corrosive materials be stored in them. Owners shall keep their storage lockers hazard-free at all times. Owners shall supply their own locks to secure their possessions and shall be responsible for insuring stored items against loss. 6.26 Swimming Pools. No Owner or Resident shall permit any Person to use the pools or pool areas except in strict accordance with the Associations Rules. Residents must be on site at the Project while their guests are at a pool or pool area. Any minors requiring supervision at a pool per the Associations Rules must be supervised by a Resident, not a guest. 6.27 Trash. All Owners shall comply with the laws and ordinances of applicable governmental authorities with respect to the disposal of trash and other rubbish. No trash or other articles shall be placed in the Common Areas except as designated by the Board. However, this Section shall not prohibit the placing of normal deliveries of articles such as packages, newspapers or bottled water in front of a Units door; provided, however, that Owners shall not permit such items to accumulate in a manner which in the Boards opinion constitutes a nuisance or safety 19

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hazard. If in the opinion of the Board, items are accumulating which are unsightly or constitute a nuisance, the Board may have them removed at the Owners expense. 6.28 View Protection and Plants. No tree, bush, plant, or shrub that impedes the view of any other Unit or encroaches on the Common Area shall be placed or maintained in any porch, Balcony or roof deck, or in the Common Area. The Board shall in its sole discretion determine if a plant impedes a view in violation of this Section. 6.29 Violation of Law. Violation of any federal, state, municipal or local law, ordinance or regulation by Owners or their family, tenants, guests, or invitees which affects the health, safety, and or property rights of other Owners, shall be deemed a nuisance and a violation of these CC&Rs which may be abated as provided for in these CC&Rs or by law. 6.30 Window Coverings. Owners shall keep permanent curtains, draperies, shades, shutters, blinds, or other suitable non-reflective window treatments on all exterior windows of their Unit, except for small or decorative fixed (non-opening) windows. In no event shall windows be covered in whole or in part with paper, newspaper, aluminum foil, bed sheets, or other materials not specifically intended for window coverings. All portions of window coverings visible from outside the Unit shall be white or off-white. ARTICLE 7 LEASING OF UNIT 7.1 Restriction on Number of Units Leased. No more than 27 of the Units shall be leased at any time. a. Prior Approval to Lease. No Owner shall lease his or her Unit without the Associations prior written approval. The Board shall respond to any Owners written request for approval to lease within 15 days. If a response is not provided to the Owner at his last known address of record within this time period, permission shall be deemed to have been granted. Any such approval shall continue until (i) the Owner moves into the Unit, (ii) the Owner ceases to be a record owner of the Unit, or (iii) the Unit has remained vacant for more than three months and, after notice and hearing to the Owner, the Board makes a good faith determination that the Owner is not attempting to lease the Unit and terminates the approval to lease. Approval of Request. The Board shall grant an Owners request for approval to lease a Unit if (i) the number of Units currently being leased plus Units which have Board approval for leasing is less than 27, and (ii) leasing the Unit would comply with all other terms of these CC&Rs. Denial of Request. The Board shall deny an Owners request for approval to lease a Unit if (i) the number of Units currently being leased plus Units which have Board approval for leasing is 27 or more, or (ii) leasing the Unit would violate any provision of these CC&Rs.

b.

c.

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d.

Transfer of Title. If a particular Unit is owned by the Association, or if a Unit is leased in compliance with this Section when title to that Unit transfers to (i) a commercial lender following a default on a mortgage or other lien or (ii) an owner who acquires title by inheritance, or if the new Unit owner is otherwise prohibited by law from evicting a tenant leasing the Unit prior to transfer of title, then the Associations written approval to lease that Unit shall be deemed to apply to the new Owner. Grandfathered Tenants. If any Unit leased or rented on the date of recordation of these CC&Rs is in compliance with the leasing provisions of the prior CC&Rs, the Owner of that Unit shall automatically be granted approval under this Section to lease that Unit. In all other respects, the leasing of that Unit shall be subject to all other terms and conditions of this Article.

e.

7.2 Lease Requirements. No Owner shall lease less than the entire Unit, nor shall any lease be for an initial term of less than six months. Units may not be used for time-share purposes, hotel-like operations or other transient purposes. In addition, the lease agreement between Owner and Tenant shall be in writing and shall contain, at a minimum, the following terms: (i) the total number of tenants authorized, (ii) Tenant agrees to comply with the Associations Governing Documents and failure to do so constitutes a default under the lease; (iii) there shall be no right of assignment or sublease; and (iv) Tenant shall obtain and maintain renters insurance with appropriate limits to ensure against property loss and personal injury. Owners shall supply the Association with a copy of any lease on or before move-in by the Tenant. This Section does not apply to roommates or other persons residing with the Owner in the Owners unit. 7.3 Rules. Owners shall provide their Tenants with copies of and ensure compliance with the Associations Rules. 7.4 Common Area Facilities. Any Owner residing off-site and whose Unit is occupied by others automatically relinquishes to their Units Residents the Owners rights to use the Associations Common Area facilities until the Owner re-takes possession of the Unit. 7.5 a. Assignment of Rents. Rental Payments. Owners retain the right to collect rent from their Units for as long as they are current in the payment of their Assessments to the Association. Once an Owner becomes 30 days delinquent, that Owners right to collect rents from the Tenant is extinguished in favor of the Association. At that point the Association shall have the right, power and authority to collect current and back rent from that Unit until the delinquent Assessments, late fees, interest, and collection costs are paid in full. The Association shall give at least 10 days written notice to the Owner and the Owners Tenant directing the Tenant to make all rent payments to the Association until the delinquency is cured. Owner Assignment to Association. If a Tenant fails to make any rent payment to the Association as required under this Section, Owner 21

b.

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hereby expressly grants and assigns to the Association the full authority, right and power, in the name of the Association as Owners agent and on Owners behalf, to terminate the tenancy and evict any tenants; to bring unlawful detainer (eviction) proceedings or other actions to evict any tenants from the Unit; to bring an action for all rents and other sums due by the tenants; and to settle, compromise and release any such proceedings or actions, or to reinstate the tenants tenancy. Any fees and costs awarded to the Association in connection with any proceeding under this Section may be levied against the Owner as a Special Assessment. c. Subordination to First Mortgage Holder. The assignment of rents and powers described in this Section shall not affect, but shall in all respects be subordinate to, any assignment of rents by an Owner to the Units first mortgage holder contained in a document recorded in the Office of the Los Angeles County Recorder. This subordination shall commence with the Associations receipt of written notice from the mortgage holder.

7.6 Unlawful Detainer to Enforce Rules. Owners shall be responsible for ensuring their tenants compliance with the Associations CC&Rs, Bylaws, and Rules, and for ensuring their Unit is not occupied by tenants in violation of this Section. Owners shall also be responsible to evict any tenants committing criminal acts on the Property, including without limitation drug-related activity. If Owner fails, within 30 days of a written demand from the Board, and after notice and hearing as may be required by law, to secure the tenants compliance with the Associations CC&Rs, Bylaws, and Rules or to evict the tenants if required under this Section, Owner hereby expressly grants and assigns to the Association the full authority, right and power as Owners agent: a. b. To terminate any tenancy and evict any tenants on Owners behalf; To institute and prosecute unlawful detainer (eviction) proceedings or other actions to remove any tenants from occupancy of the Unit, in the name of the Association on Owners behalf, and to recover and retake possession of any Unit in the Associations name on behalf of Owner; To recover in such unlawful detainer proceedings or other actions all rents and other sums due by the tenants, on Owners behalf; and In the Associations name on the Owners behalf, and in the Associations sole discretion, to settle, compromise and release any such unlawful detainer proceedings or other actions, or to reinstate such tenancies.

c. d.

Any fees and costs awarded to the Association in connection with any unlawful detainer or other proceedings under this Paragraph may be levied against the Owner as a Special Assessment. 7.7 Grandfathered Tenants. If any Unit is leased or rented on the date of recordation of these CC&Rs and on that date is in compliance with the leasing provisions of the prior CC&Rs, the Owner of that Unit shall automatically be granted
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approval under this Section to lease that Unit and the existing lease between Owner and Tenant shall be deemed to comply with the lease requirements set forth in this Article. In all other respects, the leasing of that Unit shall be subject to all other terms and conditions of this Article. ARTICLE 8 PETS 8.1 Pet Limitation. No animal of any kind shall be raised, bred or kept in any Unit, except that usual domestic household pets may be kept as household pets. No more than two dogs or two cats or one of each may be kept as household pets, and no animal shall be kept, bred or maintained (i) for any commercial purpose, (ii) in unreasonable numbers, or (iii) if there would be any odor, noise or other nuisance which would unreasonably disturb the use and enjoyment of any portion of the Project by other Owners. The Board may establish additional Rules regarding the kinds and sizes of pets which may be kept as well as other pet issues. 8.2 permitted. Weight Limitation. No dog which exceeds a weight of 25 pounds is

8.3 Grandfathered Pets. Pets residing at the Association on the date of recordation of these CC&Rs which were not in violation prior to that date but which are prohibited under these CC&Rs are permitted provided, however, those pets are registered with the Association. Residents may keep any such registered pets for as long as the Resident resides at the Project. However, once the Resident has moved from the Project or the pet has died, the pet cannot remain at the Project or be replaced except as provided for in these CC&Rs. 8.4 Visiting Dogs. Visiting dogs are not permitted if (i) the total number of dogs and cats in the Unit visited would exceed two, including the visiting dog, or (ii) the dog does not meet the requirements of the Governing Documents, including this Article, for pets residing at the Project. 8.5 Nuisance. Owners shall be liable to the Association and other Owners for any damage to person or property, or nuisance noise caused by the pets of such Owners or their family or Tenants. The Board shall have the right to prohibit any pet which, in its opinion, constitutes a nuisance to other Owners. 8.6 Service Animals. Pets otherwise prohibited in these CC&Rs which are kept for the purpose of servicing a Residents disability are allowed to the extent required by law, if this would constitute a reasonable accommodation, with (i) appropriate documentation showing compliance with this Section, and (ii) the Boards prior written consent. 8.7 Dangerous Animals. No animal may be kept which the Board has determined to be dangerous or has been designated as dangerous by any governmental agency. 8.8 Leash. All animals must be kept within an enclosure, held by a person, or kept on a leash by a person capable of controlling the animal whenever the animal is in the Common Areas. Any animal not so controlled may be removed by the 23

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Association to a pound or comparable animal shelter under the same local jurisdiction as the Project. 8.9 Sanitation. Owners shall be responsible for immediately cleaning up any mess caused by their animals. ARTICLE 9 VEHICLES AND PARKING 9.1 Management of Parking. The Association shall manage and control the use of all Common Area parking. 9.2 Exchange of Parking Spaces. Owners shall be entitled to exchange any Exclusive Use Common Area parking spaces assigned to their respective Units in their individual grant deeds, provided that: (1) a reciprocal deed of conveyance identifying the exchanged parking spaces, the exchanging Owners and their respective Units is executed by the exchanging Owners and recorded with the office of the Los Angeles County Recorder; and (2) no such exchange shall be effective if it would reduce the number of parking spaces to which such Owners were originally entitled. A copy of the recorded deed shall be delivered to the Board as soon as possible after recordation. 9.3 Restricted Parking. Only Vehicles may be parked or stored in parking spaces. Vehicles shall be parked completely within the parking space. No RV, camper, boat, recreational water craft, trailer or any other similar Vehicle is permitted in any portion of the Common Areas or in any parking space. 9.4 Commercial Vehicles. Commercial trucks which are over 3/4 ton or create a hazard or nuisance are prohibited on the Common Areas, except the Association may allow contractors vehicles on site subject to reasonable Rules. 9.5 Guest Parking. Guest parking is limited and there shall be no guest parking except as provided for in the Rules. Owners guest parking privileges may be suspended for delinquencies and Rules violations. 9.6 Proper Operating Condition. All Vehicles shall be maintained in proper operating condition so as not to be a hazard or nuisance by noise, exhaust emissions, leaking fluids, or appearance. 9.7 Limited Operation. Vehicle engines shall not be operated in the Common Areas except as necessary to move the Vehicle into or out of the parking spaces. 9.8 Electric Vehicles. No electric Vehicles are permitted to be recharged on the Project except at the Owners expense. 9.9 Motorcycles. Motorcycles must be configured so as to provide for their quiet operation. 9.10 Repair of Vehicles. No Owner shall construct, repair, or service any Vehicle within any portion of the Project, except for emergency repairs to the extent 24

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necessary for the movement of the Vehicle to a proper repair facility, or other minor work, if any, authorized in the Rules. 9.11 Project. Washing of Vehicles. Vehicles may not be washed or detailed on the

9.12 Fluid Leaks. Owners must keep the Common Area free of fluids such as oil, radiator coolant, brake fluid, power steering fluid, etc. Owners who fail to do so may be fined or specially assessed for the cost of cleaning the affected areas. 9.13 Damage and Theft. Unless caused by their intentional misconduct or gross negligence, neither the Association nor its Officers, Directors, Committee members, employees or agents shall be liable for any loss or damage suffered by reason of theft of or damage to any Vehicle. 9.14 Impeding Access. No Vehicle shall be parked in such a manner as to impede or prevent ready access to any door, gate, entrance, or exit. 9.15 Towing. For any Vehicle-related parking violation committed on site, the offending Vehicle may be towed by the Association at the Owners expense as allowed by law. ARTICLE 10 ARCHITECTURAL CONTROL 10.1 Prior Approval of Improvements. No addition, change, or alteration may be made to any of the following areas until plans and specifications showing its nature, color, kind, shape, height (including front, side and rear elevations), materials, and location have been submitted to and approved in writing by the Board: a. b. c. d. e. Any Units perimeter walls, bearing walls, utility lines or plumbing; A Buildings exterior, including windows, doors, Balconies, porches, and roof decks; Any Common Area; Exclusive Use Common Area, including steps, porches, and Balconies; or Any other Improvement, excluding fixtures or build-outs (such as cabinets) inside the Unit that do not affect or alter in any way a Buildings structure or its electrical, water, or utility lines.

10.2 Decorating Unit. Owners shall have the right to decorate the interior surfaces of the walls, partitions, ceilings, floors, and doors within their Unit without prior approval if the work does not impair or affect the structural integrity, utility lines, plumbing, or mechanical systems or lessen the support of any portions of the Project.

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10.3 a.

Specific Restrictions. No Washers and Dryers. Washers and dryers are prohibited in Units, provided any washers or dryers installed in a Unit prior to the date of recordation of these Restated CC&Rs with proper Code-compliant hookups shall be grandfathered in. No Balcony Enclosures. Balconies may not be enclosed. No Roof Alterations. No Owner shall have the right to build onto the Associations roofs except for solar panels to the extent allowed by law and air conditioning units installed with the Boards prior written approval. Skylights are specifically prohibited. No variances may be issued to waive this provision. Chandeliers and Ceiling Fans. No chandeliers or ceiling fans weighing more than 75 pounds shall be installed in any Unit without the prior written approval of the Board. Acoustical Limitations. (1) Hard-surfaced floors such as marble, granite, tile, hardwood, etc. must have proper noise insulating materials installed so as to avoid noise problems with neighboring units. Specific requirements for appropriate soundproofing may be set forth in the Rules. Any hard-surfaced floors existing in any Unit as of the date of recordation of these CC&Rs is exempt from this restriction, although any replacement of such flooring must comply with this Section. It is the responsibility of Owners of Units on the second floor or higher to maintain their plywood sub-floor in a squeak-free condition. Most squeaks are caused by loosened pieces of plywood sub-floor which rub against either a loose nail or another piece of sub-floor when it is walked upon. For the longest lasting corrective results, it is recommended that all loose pieces of subfloor be secured by screws rather than nails.

b. c.

d.

e.

(2)

f.

Solar Energy Systems. The following restrictions apply to the installation of solar energy systems as defined in California Civil Code Section 801.5(a)(1) and (2). (1) Compliance. Solar energy systems shall meet applicable health and safety standards and requirements imposed by state and local permitting authorities. (a) Solar energy systems for heating water shall be certified by the Solar Rating Certification Corporation (SRCC) or other nationally recognized certification agencies. SRCC is a nonprofit third party supported by the United States Department of Energy. The certification shall be for the entire solar energy system and installation. 26

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(b)

Solar energy systems for producing electricity shall also meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules of the Public Utilities Commission regarding safety and reliability

(2)

Approval. The Board shall approve an Owners application for approval to install a solar energy system if the installation would comply in all respects with applicable law, this Section, and any reasonable restrictions adopted by the Board as stated in this Section. The Boards approval or denial of an application shall be in writing. If the application is not denied in writing within 60 days from the date of receipt of the application, the application shall be deemed approved unless that delay is the result of the Boards reasonable request for additional information. Standards. The Board may adopt reasonable restrictions on the installation and maintenance of solar energy systems. The restrictions on solar energy systems will not significantly increase the cost of the system or significantly decrease its efficiency or specified performance. The restrictions may allow for an alternative system of comparable cost, efficiency, and energy conservation benefits. Unless more restrictive requirements are allowed by law, the following shall apply: (a) For solar domestic water heating systems or solar swimming pool heating systems that comply with state and federal law, significantly means an amount exceeding 20 percent of the cost of the system or decreasing the efficiency of the solar energy system by an amount exceeding 20 percent, as originally specified and proposed. For photovoltaic systems that comply with state and federal law, significantly means an amount not to exceed two thousand dollars ($2,000) over the system cost as originally specified and proposed, or a decrease in system efficiency of an amount exceeding 20 percent as originally specified and proposed.

(3)

(b)

10.4 Handicap Access. Any change in the exterior appearance of a Unit shall be in accordance with the Governing Documents and applicable law. Subject to the provisions of these CC&Rs and applicable law, including without limitation Civil Code Section 1360 as hereafter amended, Owners may modify their Unit, at the Owners expense, to facilitate access for persons who are blind, visually handicapped, deaf, or physically disabled, or to alter conditions which could be hazardous to these persons. These modifications may also include modifications of the route from the public way to the door of the Unit for the purposes of this Section if the Unit is on the ground floor or already accessible by an existing ramp. The right granted in this Section is subject to the following conditions: 27

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a.

The modifications shall be consistent with applicable Building Code requirements and with the intent of other applicable provisions of the Governing Documents pertaining to safety or aesthetics. Modifications external to the dwelling shall not prevent reasonable passage by other residents, and shall be removed by the Owner when the Unit is no longer occupied by persons requiring those modifications who are blind, visually handicapped, deaf, or physically disabled. Any owner who intends to modify a Unit subject to this Section shall submit plans and specifications to the Association for review to determine whether the modifications will comply with the provisions of this paragraph. The Association shall not deny approval of the proposed modifications under this Section without good cause.

b.

c.

10.5 Submission of Plans. Plans and specifications for the proposed modification shall be submitted to the Board by personal delivery or certified mail. The Board may also require additional plans and specifications containing such additional details and/or items as it may specify. 10.6 Standards for Approval. The Board shall take into consideration quality of workmanship and materials; harmony of external design and location in relation to surrounding areas; and effect on the Building structure, utilities, plumbing and other Common Areas. It shall approve plans and specifications submitted to it only if it determines that the work: a. b. c. Will not be an unreasonable detriment to the surrounding area of the Project; Will be substantially consistent with, and in harmony with, the general design, character and appearance of the Project; Will not unreasonably detract from the attractiveness or use of any portions of the Common Area which are used or enjoyed by Owners and Residents; Will not result in an unreasonable increase in Common Expenses; and Will not impair the structural integrity or sound attenuation levels of any portion of the Project.

d. e.

10.7 Conditions for Approval. The Board may condition its approval of plans and specifications on such changes as it deems appropriate and on anything else that it considers reasonable or appropriate under the circumstances, including but not limited to: a. b. c.
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Assurance that all required permits and other approvals will be obtained; Deposits with the Association or with others to assure completion; The posting of completion and/or payment bonds; 28

d. e. f. g.

Use of licensed and insured contractors and/or subcontractors; Scheduling and conducting construction in a way that will not unreasonably disturb other Owners and Residents; Approval of contracts with contractors, subcontractors and/or material suppliers; Agreements entered into with the Association, including agreements providing reimbursement to and/or indemnification of the Association; and Obtaining specified insurance coverages.

h.

10.8 Review Fees and Remodeling Agreement. The Board may establish a schedule of fees which may be charged against the submitting party to defray any costs incurred by the Association including architectural and/or engineering consultant fees, legal fees, and expenses for reviewing plans. In addition, the Board may require Owners to sign a remodeling agreement. 10.9 a. Board Decision. Timely Response. The Board may postpone its review until it has determined that a full and complete submission has been made to it of all things which it deems necessary under the circumstances, including, if required, additional plans and specifications. Except as otherwise stated in this Article, if the Board fails to approve or disapprove the modification within 45 days after said complete plans and specifications have been submitted to it, the request shall be deemed approved, except any portion of the plans or specifications which (i) violates any provision of the Associations Governing Documents, California law, or local ordinances; (ii) adversely affects the Buildings structural integrity; (iii) alters the Projects exterior appearance; or (iv) creates a health or safety risk shall be deemed automatically rejected. Rejection of Application. If the Board disapproves a proposed change, it shall issue a written decision including both an explanation of why the proposed change is disapproved and a description of the procedure, if any, for reconsideration of the decision by the Board.

b.

10.10 Permits. Any Board approval for architectural changes shall be automatically contingent on the Owner obtaining all required permits for the project prior to commencement of the construction, including without limitation building, electrical, plumbing, and air conditioning permits, and on the Owner having such permits signed off on completion of the project. Owners must submit to the Association proof of proper permitting before commencing work. 10.11 Reconsideration. a. Final Decision. Any decision on an Owners application shall be final if it was made at an open meeting of the Board. 29

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b.

Reconsideration by Board. To the extent required by statute, if the Associations decision on an Owners application was not made in an open meeting of the Board, the Owner may request that the Board reconsider the decision at an open Board meeting. The Board shall render its decision in writing within 45 days of receiving the Owners request. If the Board rejects the Owners application, its written finding shall include an explanation of why the proposed change is disapproved.

10.12 Engineering and Code Requirements. Plans and specifications approved by the Association are not approved for engineering design or Building Code specifications. Owners submitting plans for review by the Association assume full responsibility for ensuring compliance with applicable Building Codes, ordinances and specifications. 10.13 Diligent Construction. The approval of any architectural submission shall be deemed conditional upon the commencement of such work within 120 days after approval has been obtained, or within such other period as shall have been specified by the Board at the time of its approval. In addition, all approvals shall be automatically revoked on transfer of title to the Unit if work is not started before then. Work must be prosecuted diligently to completion within a reasonable time and in any event before the expiration of any time frame reasonably set by the Board. Extensions may be granted for delays caused by strikes, fires, holidays or other events beyond the Owners control. If the work has been commenced but not finished by the completion date which has been set or approved by the Board and no extensions have been granted, the Association may impose fines to accrue at a daily or weekly rate until the work is completed. 10.14 Variances. The Board shall be entitled to allow reasonable variances with respect to this Article in order to overcome practical difficulties, avoid unnecessary expense or prevent unnecessary hardship. Variances must be in writing and signed by a member of the Board. Variances may be recorded with the Los Angeles County Recorder at the option of the Owner or the Association. Variances may only be granted based on the Boards good faith determination that: a. The requested variance does not constitute a material deviation from the overall plan and scheme of development within the Project or from any restriction in these CC&Rs; or The requested variance allows the objectives of the violated requirement(s) to be substantially achieved despite noncompliance; or The variance relates to a requirement under these CC&Rs that is unnecessary or burdensome under the circumstances; or The variance, if granted, will not result in a material detriment, or create an unreasonable nuisance, with respect to the Common Area or any other Owner within the Project.

b. c. d.

10.15 Notice to Neighbors. If the proposed alteration requires a variance, or if the Board determines that the proposed alteration could have a substantial negative effect on other Owners, then the Association shall provide notice of the
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proposed alteration to potentially affected Owners and solicit their opinions before making a determination on whether to grant the variance. 10.16 Variance Not a Waiver. The granting of a variance by the Board shall in no event be deemed a variance or waiver as to any other Unit, nor shall any variance affect the applicability or enforceability of any provision of this Article in respect to any other Unit 10.17 Non-Complying Modifications. If the work as actually constructed does not match the architectural submission approved by the Board, it shall be deemed unapproved. The Owner shall either promptly correct the deficiency to match the original submission or remove the modification and return the area to its original condition within the time frame set by the Board, and once this is done shall promptly allow the Association to inspect the modification for compliance. 10.18 Architectural Rules. The Board may adopt, amend, and repeal architectural Rules. These architectural Rules shall interpret and implement the provisions of these CC&Rs by setting forth the standards and procedures for the review and approval of proposed modifications, guidelines for architectural design and placement of any modification, color schemes, exterior finishes and materials, and similar features which are recommended for use within the Project, provided that the architectural Rules shall meet the minimum standards required by these CC&Rs. In the event of any conflict between the architectural Rules and these CC&Rs, the CC&Rs shall prevail. 10.19 Mechanics Liens. Owners shall ensure that no lien is placed against any other Unit or against the Common Areas for labor or material furnished to their Units. If a lien is placed against the Common Areas and other Owners Units and the responsible Owner does not immediately cause the removal of the lien, the Association may, after written notice to the responsible Owner, pay the amounts necessary to have the lien removed and levy a Special Assessment against the responsible Owner. 10.20 Waiver of Liability. Neither the Association or its Officers, Directors, Committee members, employees or agents shall be liable for any damage, loss or prejudice suffered or claimed on account of the Boards or any Committee members approval or disapproval of any plans, drawings or specifications, or the conformance of the construction with the approved plans. 10.21 Conflicts of Interest. No Director may participate in the decisionmaking process of any architectural submission made by that Director or Committee member or members of their family. Further, no Director may participate in the decision-making process of any other architectural submission if it results in a monetary benefit to the Director or any company in which they or members of their family have a financial interest. 10.22 Estoppel Certificate. After an Owner has completed work to their Unit, the Owner may request in writing a written certificate from the Board stating whether the modifications comply with the CC&Rs. Prior to issuing such a certificate, the Board may require a certificate executed by an independent architect stating that the construction has been completed in substantial conformity with the plans and specifications approved by the Board. Within 30 days after receipt of the
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request, the architectural certificate (if requested) and a reasonable fee as fixed by the Board, the Board shall execute an estoppel certificate, signed by any two Directors, certifying whether, as of the date of the certificate, the modifications to the Owners Unit comply with these CC&Rs. If they do not comply, the certificate shall specify what portions of the modifications are in violation. The time frame for providing the certificate shall be tolled for any time period during which the Owner fails to provide access to inspect the modifications or documentation needed to verify compliance, such as proper permits. Any Person receiving title to the Unit shall be entitled to rely on this certificate with respect to the matters stated in it, and those matters shall be conclusive as between the Association and all Owners. ARTICLE 11 COMBINING UNITS 11.1 Approval Requirement. No Owner may combine adjoining Units without written approval of the Board of Directors. Approval, if any, shall be subject to: a. Architectural Plans. Architectural plans of the proposed combination of the Units which include the effects of the proposed combination on Common Area plumbing and wiring as well as written assurances from a licensed structural engineer that the changes will not lessen the structural support of any part of the Project. Bond. A bond at Owners expense assuring the prompt completion of the work free of mechanic's liens which names the Association as an obligee. Permits. All building and other governmental permits required for the proposed combination. Contractor Insurance. A certificate reflecting that the contractor selected to perform the work has liability insurance and workers' compensation coverage in appropriate amounts. Miscellaneous. Any other documentation which the Board of Directors may reasonably require including a refundable security/damage deposit in an amount to be set by the Board in addition to a reasonable fee for reviewing the submission and inspecting the work.

b.

c. d.

e.

11.2 Prohibition Against Combination. Any proposed combination of the Units which would in any way result in the removal of any structural support for any Unit or Units and/or any other portion of the Project is strictly prohibited. 11.3 Owner Agreement to Terms. As a condition for approval, the Board may require the Owner to execute an agreement titled a Covenant to Run with the Land wherein the Owner agrees to return the combined Units into two separate Units with their original dimensions and footprint prior to transferring title. The Covenant to Run with the Land shall be recorded against the Unit with the Los Angeles County Recorder. 11.4 Indemnity. Owners who combine Units shall hold harmless, indemnify and defend the Association and its officers, Directors, Committee members,
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employees, and agents against all claims for injuries, loss or damage to persons or property related to or arising from the work performed. 11.5 Rescinding Approval. The Board has the right to rescind its approval if the work is not done in accordance with the documentation which had previously been submitted to, and approved by, the Board, or the Board reasonably concludes that the structural integrity of a Building has been impaired. In such event, the Unit shall at Owner's sole expense be made to conform with the documentation submitted to the Board or be restored to its prior condition. 11.6 Effect of Combination. Combining Units shall have the following consequences: a. Interest in Common Area. The interest in the Common Area allotted to the combined Units shall be equal to the sum of the Common Area interest of each of the combined Units. Assessments. The Assessments due and owing on the combined Units shall be equal to the sum of the Assessments levied against each of the respective Units so combined. Voting Rights. The owner of the combined Unit shall have the number of votes equal to the number of votes of the Units that were combined. For example, if two prior Units were combined into one, the owner of the new Unit would retain two votes as a member of the Association.

b.

c.

11.7 No Right to Divide. No Owner shall have the right to divide any Unit; provided, however, that by following the same procedures set forth in this Article, once two or more Units have been combined the Owner may seek written approval of the Board of Directors to divide the Units and thereby restore them to their original dimensions and footprint. ARTICLE 12 ASSESSMENTS 12.1 Purpose of Assessments. The general purpose of Assessments is to promote the recreation, health, safety and welfare of the Owners; manage, administrate, preserve, repair, replace, maintain, and improve the Common Areas; enforce and comply with the Governing Documents; enhance the quality of life at the Project and the value of the Project; provide for the acquisition and maintenance of property, services and facilities devoted to these purposes; and any action or undertaking on behalf of the Association in furtherance of these purposes. 12.2 Regular Assessment. The Board shall levy Regular Assessments in an amount sufficient to provide for the performance by the Board of each and every one of its powers and duties provided, however: a. 20% Limitation. The Board may modify the Regular Assessments during the course of a fiscal year if necessary to conform to a revised estimate of costs and expenses. However, the Board shall not, without the approval by vote or written consent of Owners constituting a majority of a Quorum of all Owners, impose a Regular Assessment which is more 33

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than 20% greater than the Regular Assessment for the immediately preceding fiscal year. b. Rate for New Fiscal Year. If an annual Regular Assessment is not published for a new fiscal year, the Regular Assessment for the prior fiscal year shall apply and govern each Owners payments until changed by a new Regular Assessment. Assessment Allocation. Regular Assessments shall be levied pro rata in accordance with the Assessment Schedule contained in Exhibit A. Payable Monthly. Regular Assessments shall be payable by each Owner against whom assessed in 12 equal monthly installments on the first day of each calendar month (commencing with the date on which he becomes an Owner and prorated to that date) or at such other dates and in such other installments as the Board shall determine. Written Notice. Written notice of any increase in Regular Assessments shall be sent by first-class mail to each Owner not less than 30 days nor more than 60 days prior to the increased Assessment becoming due.

c. d.

e.

12.3 Special Assessment. In addition to the Regular Assessment, the Board may levy a Special Assessment for any purpose necessary for the Association to carry out its duties, provided, however: a. Five Percent Limitation. The Board shall not, without the approval by vote or written consent of Owners constituting a majority of a Quorum of all Owners, impose a Special Assessment which is more than five percent of the budgeted gross expenses of the Association for such fiscal year. This limitation does not apply to a Special Assessments levied against only one Owner as provided in these CC&Rs. Rate of Assessment. Special Assessments shall levied pro rata against each Unit, in accordance with the Assessment Schedule contained in Exhibit A. Assessment Against Individual Unit. Special Assessments may also be levied against individual Owners for reimbursement of expenses incurred by the Association arising out of actions or omissions of such Owners or their family, Tenants, guests, or pets. Such expenses shall include but not be limited to: (1) (2) (3) Enforcing compliance with the Associations Governing Documents; Mitigating or repairing damage to Association property or Common Areas; Reasonable attorneys fees and costs, regardless of whether legal proceedings were instituted; and

b.

c.

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(4) d.

Materials and/or services provided by the Association to Owners or their family, Tenants or guests.

Payment Schedule. Special Assessments shall be payable by each Owner against whom assessed: (i) monthly, or (ii) at such dates and in such installments as the Board shall determine. Written Notice. Written notice of Special Assessments shall be sent by first-class mail to each Owner not less than 30 days nor more than 60 days prior to the Assessment becoming due.

e.

12.4 Owner Vote on Assessments. Any Owner vote on increasing regular Assessments or levying Special Assessments shall be conducted by secret written ballot, using the procedures for ballots, proxies, inspectors of election, tabulating the vote, and storage and availability of ballots set forth in the Bylaws. 12.5 Emergency Situations. Notwithstanding any other provision, the Board may increase Regular Assessments without regard to the 20% limitation or levy Special Assessments without regard to the five percent limitation for emergency situations. If a Special Assessment or an increase to the Regular Assessment is imposed for an emergency situation without Owner approval, the Board shall pass a resolution containing written findings as to the necessity of the extraordinary expense involved and why the expense was not or could not have been reasonably foreseen in the budgeting process. The resolution shall be distributed to the Owners with the notice of Assessment. For purposes of this section, an emergency situation is any one of the following: a. b. Order of Court. An expense required by an order of a court of competent jurisdiction. Threat to Personal Safety. An extraordinary expense necessary to repair or maintain the Project or any part of it for which the Association is responsible where a threat to personal safety on the Project is discovered. Unforeseen Expenses. An extraordinary expense necessary to repair or maintain the Project or any part of it for which the Association is responsible and could not have been reasonably foreseen by the Board in preparing and distributing the pro-forma operating budget.

c.

12.6 Deposit of Assessments. All sums received by the Association shall be promptly deposited into accounts clearly designated in the Associations name. a. Commingling. The Association shall maintain separate accounts for its operating funds and its reserves, respectively, and no funds from those separate accounts shall be commingled at any time. Interest. No Owner shall have the right to receive interest on any such funds deposited.

b.

12.7 Disbursement of Funds. All checks, drafts or other orders for payment of money issued by or in the name of the Association shall require two signatures, one
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by the President or the Treasurer, and the second by another Director or the managing agent of the Association. In the absence of the President or Treasurer, any other Director may be a co-signer. Notwithstanding the foregoing, disbursements may be paid by the managing agent without counter-signature by the Board pursuant to a management contract for amounts under an amount authorized by the Board. However, all reserve account withdrawals or transfers shall require approval by the Board and signatures by two Directors. 12.8 Reserves. Notwithstanding the foregoing, all sums assessed and collected by the Association which are budgeted to fund reserves shall: a. b. c. Funding. Be funded by Regular Assessments, except that repaying a loan from the Reserve Fund may be done via a Special Assessment. Contributions to Capital. Be received by the Association as contributions to the capital of the Association by the Owner assessed. Segregated. Be received in trust by the Board, set aside and segregated from the other monies and not commingled with the Associations operating account. Invested. Be invested in low-risk investments. The Board will insert into the minutes of an open Board meeting its selection of an investment vehicle along with its reasons for selecting that method. In making this choice, the Board may rely on the advice of a duly licensed professional. Restricted Use. Be used for the sole purpose of paying the cost of longterm maintenance, repair and replacement of capital Improvements upon the Common Area, the cost of which would not ordinarily be incurred on an annual basis. Two Signatures. Be withdrawn from the Reserve account only upon approval by the Board and the signature of two members of the Board. Temporary Transfers. Notwithstanding the foregoing, the Board may authorize the temporary transfer of money from a Reserve fund to the general operating fund of the Association to meet short-term cash flow requirements or other expenses. The transfer shall be noted in the minutes of a Board meeting and the transferred funds shall be restored to the Reserve fund within one year of the date of such initial transfer, except that the Board may, upon making a written finding that a delay would be in the best interests of the Association, delay the restoration until the time which the Board reasonably determines to be necessary. No Reimbursement. All contributions to the reserves as well as interest earned are for the benefit of the Association and not to the benefit of any individual Owner. As such, contributions and interest are not refundable to Owners when they cease to be Owners.

d.

e.

f. g.

h.

12.9 Television or Internet Assessment. If the Board elects to contract a cable television, satellite television service, broadband internet service, or similar
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audio, visual or electronic networking facilities for the Project, it may levy an Assessment against each Owner for the cost of such service. ARTICLE 13 ENFORCEMENT OF ASSESSMENTS 13.1 Liability for Assessments. Assessments, together with charges, interest, costs, and attorneys fees (regardless of whether legal proceedings are instituted), shall be a charge on the land and shall be a continuing lien upon the property against which each such Assessment is made. In addition, Owners shall be personally liable for any and all Assessments provided for by these CC&Rs together with any accompanying late charges, interest, costs, attorneys fees (regardless of whether legal proceedings are instituted), and penalties as may be authorized under these CC&Rs. In a voluntary conveyance of a Unit by an Owner, the buyer shall be jointly and severally liable with the seller for all unpaid Assessments, late charges, interest, costs and penalties up to the time of the grant or conveyance without prejudice to the buyers right to recover from the seller the amounts paid by the buyer. 13.2 Enforcement Rights. Any Assessment made in accordance with these CC&Rs shall be the separate debt of each Owner against whom the same is assessed. In addition to any other rights provided for by law or described in these CC&Rs, the Board has the right to collect delinquent Assessments as follows: a. Late Fees and Interest. Unpaid Assessments shall be deemed delinquent 15 days after they are due and shall be subject to late charges and interest as follows: (1) A late charge of 10% or $10.00, whichever is greater. A late charge may not be imposed more than once on any delinquent payment. Interest at the rate of 12% per annum. Interest shall commence 30 days after the Assessment becomes due.

(2) b.

File Suit. The Association may commence and maintain a lawsuit directly on the debt without waiving its right to establish a lien and initiate foreclosure against the Owners Unit for the delinquent Assessment. In any action to collect delinquent Assessments, late charges or interest, the prevailing party shall be entitled to costs and reasonable attorneys fees. If such costs and fees are awarded to the Association, they shall become a Special Assessment against the Owner and shall be fully enforceable by all means provided for in these CC&Rs including lien and foreclosure. Lien and Foreclosure. A delinquent Assessment or installment, together with any late charges, interest, costs, attorneys fees and penalties shall become a lien on the Unit upon the recordation of a Notice of Delinquent Assessment in the Office of the County Recorder. The Board may enforce any Assessment lien against a Unit by filing an action for judicial foreclosure or by nonjudicial foreclosure. 37

c.

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d. e.

Collect Rent. The Association may collect the rental income from Units of delinquent Owners as provided for in these CC&Rs. Additional Remedies. The remedies provided in this Section shall be in addition to and not in substitution for any other rights and remedies which the Association may have.

13.3 Foreclosures. At any foreclosure proceeding instituted by the Association, the Association, through its Board, may bid on the Unit at the sale, and may hold, lease, mortgage, and convey the acquired Unit. 13.4 Application of Proceeds. The proceeds of any judgment or foreclosure or trustees sale provided for in these CC&Rs shall first be paid to discharge the Associations costs of collection, including attorneys fees; next to satisfaction of all charges and assessments owed by the defaulting Owner; next to any liens recorded against the Unit after the Associations lien for delinquent assessments; and any remaining balance to the defaulting Owner. 13.5 Waiver of Objection. Each Owner vests in and delegates to the Board or its duly authorized representative the right and power to bring all actions at law or lien foreclosures, whether judicially or by power of sale, or otherwise, against any Owner or Owners for the collection of delinquent Assessments in accordance herewith, and expressly waives any objection to the enforcement in accordance with these CC&Rs of the obligation to pay Assessments as set forth in these CC&Rs. 13.6 No Offsets. All Assessments shall be payable in the amount specified by the Assessment and no offsets against such amount shall be permitted for any reason, including without limitation, (i) a claim that the Association is not properly exercising its duties and powers as provided in these CC&Rs; (ii) an Owner has made or elects to make no use of the Common Area; (iii) any construction or maintenance for which the Association is responsible has not been performed; or (iv) any construction or maintenance for which the Association is responsible has not been performed to an Owners satisfaction. 13.7 Subordination of Certain Trust Deeds. The Assessment lien shall be prior to all encumbrances against the Unit, whether the notice of assessment is recorded before or after such encumbrance. Specifically excepted from this provision are taxes, bonds, assessments and other levies which by law are prior to the Assessment lien, and the lien of any first mortgage or first deed of trust in favor of any mortgagee made in good faith and for value and recorded with the Los Angeles County Recorder before the Assessment lien. 13.8 No Exemption by Waiver of Use. Owners may not exempt themselves from liability for Assessments nor release their Units from liens and charges by waiver of their use and enjoyment of the Common Areas or by abandonment of their Units or through non-use of any Common Areas or membership privileges. 13.9 Waiver of Exemptions. Owners, to the fullest extent permitted by law with respect to liens created pursuant to these CC&Rs, waive the benefit of any exemption or redemption laws of the State of California in effect at the time any payment of any Assessment becomes delinquent, and shall be deemed to be estopped 38

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to raise exemptions or redemptions in any action or proceeding to enforce or foreclose such liens. 13.10 Attorneys Fees. Any reasonable attorneys fees and costs incurred by the Association in the enforcement of its Assessment rights against an Owner may be levied against that Owner by the Board as a Special Assessment which may be collected in any manner provided for by these CC&Rs or by law. ARTICLE 14 INSURANCE 14.1 Association Insurance. The Association shall obtain and maintain the following policies of insurance: a. Direct Physical Loss. Loss or damage by fire or other risks covered by the standard Special Form policy (or its equivalent) on all Common Area improvements. The amount of such insurance shall be not less than 100% of the aggregate full insurable value, meaning actual replacement value. The coverage shall be written on a blanket basis with an agreed value endorsement and an inflation guard endorsement. In addition, and if available, the Board shall purchase: (1) Building Ordinance coverage (or its equivalent) to cover any increased costs of construction following a covered loss which may be imposed due to changes Building Codes or ordinances. Maintenance Fees Receivable coverage (or its equivalent) to cover the loss from unpaid or uncollected assessments resulting from a covered property loss. Demolition and Debris Removal endorsement in the amounts adequate to cover demolition and debris removal costs. Such other endorsements which the Board may deem necessary or reasonable.

(2)

(3) (4) b.

Comprehensive or Commercial General Liability (CGL). The Association shall maintain one or more CGL policies which shall provide appropriate liability limits for injury or death to one or more persons in any one accident or occurrence. The Association shall carry coverage of at least $3 million, or any greater amounts specified in Civil Code Section 1365.9, as amended from time to time. Directors and Officers. The Association shall purchase directors and officers errors and omission insurance which shall provide appropriate liability limits insuring Directors, Officers, Committee members, and management employees. The Association shall carry coverage of at least $1 million, or any greater amount specified in Civil Code Section 1365.7, as amended from time to time. Workers Compensation. The Association shall carry workers compensation and employers liability insurance as may be appropriate. 39

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d.

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e.

Fidelity Bond. The Association may, at its option, maintain blanket fidelity bond coverage for all Directors, Officers, Committee members, and employees of the Association handling funds of the Association or third party property of at least 150% of the estimated annual operating expenses and reserves of the Association. In the event the Association has delegated some or all of the responsibility for the handling of funds to a management agent, the management agent shall be required to maintain blanket fidelity bond coverage for those persons handling or responsible for funds of the Association. Employment Practices Liability. If the Association has employees, it should, depending on cost and availability, purchase employment practices liability coverage. Boiler and Machinery Insurance. If appropriate, the Association shall purchase insurance for the loss or damage to or as a result of boilers, pressure vessels and pressure pipes. Earthquake and Flood Insurance. The Association may purchase appropriate levels of earthquake or flood insurance. If the Board has decided not to purchase earthquake insurance for the Associations improvements, that decision must be made as part of the Boards annual insurance disclosure to the membership. Owner Obligation to Carry Insurance. Required Insurance Coverage. At their sole expense, Owners shall purchase the following insurance: (i) real property coverage for replacement cost, which insures their Units improvements and contents against damage or loss; (ii) personal property coverage for replacement cost; (iii) premises liability of at least $500,000, which includes protection for bodily injury and property damage; (iv) loss of use coverage of either actual loss sustained or at least $50,000, which protects an Owner for additional living expenses should his or her Unit becomes uninhabitable due to a covered loss; and (v) loss assessment coverage which protects against special assessments due to a loss which exceeds the Associations master policy limits of at least $10,000 per loss or occurrence. In addition, if Owners operate Vehicles which are driven across or stored in the Associations Common Areas, they must carry appropriate automobile insurance. Enforcement. The Association may but is not required to and is specifically relieved of any responsibility or liability for policing this Section. Assignment of Proceeds. If any loss intended to be covered by the Associations insurance occurs and the proceeds payable are reduced because of an Owners insurance coverage, that Owner shall assign such insurance proceeds to the Association, to the extent of the reduction. The Board shall apply those proceeds to the same purposes as the reduced proceeds received by the Association. 40

f.

g.

h.

14.2 a.

b.

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14.3 Owner Waiver of Claims. All insurance individually carried by an Owner msut contain a waiver of subrogation rights by the insurer as to the other Owners, the Association, and its Officers, Directors, employees, and agents. a. Against Association Insurance. The Owners hereby waive their right to make any claim against any Association insurance policy, to the extent that the damage claimed would be covered under the homeowners insurance policy which Owners are required under this Article to carry, regardless of the cause of the damage and regardless of whether or not the Owner actually has such insurance coverage. Against Other Parties. The Owners hereby waive and release all claims against the Association, the Board, other Owners, and agents and employees of each of the foregoing, with respect to any loss covered by the Owners insurance, whether or not caused by negligence of or breach of any agreement by said persons, but to the extent of insurance proceeds received in compensation for such loss only. Losses Covered by Associations Insurance. To the extent it will not void or impair the Associations insurance, each Owner hereby waives and releases all claims against the Association, its employees, Directors, Officers, Committee members, and agents, and all other Owners with respect to any loss covered by any insurance policy maintained by the Association, to the extent of insurance proceeds actually received by the Owner or applied to the Owners benefit. This applies whether or not the claim was caused by the negligence of, or breach of any agreement by, said persons, but only to the extent of the insurance proceeds received in compensation for such loss. Management of Claims. Submission of Claims. The Board and not individual Owners shall determine which claims, if any, shall be submitted to the Associations insurance carrier. The Board may take into account the Associations claims history, the amount of the deductible, the apparent merit of the claim, and any other relevant factors, and shall make a business judgment over whether a claim shall be submitted. If an Owner makes an unauthorized claim against the Associations insurance which results in an increase in the Associations insurance premiums, the amount of the increase shall be assessed against the Owner and his or her Unit as a Special Assessment. Settlement of Claims. The Association is authorized to negotiate and agree on the value and extent of any loss under any policy of insurance carried by the Association. The Association is granted full right and authority to compromise and to settle any claim or enforce any claim by legal action or otherwise and to execute releases in favor of any insusrer.

b.

c.

14.4 a.

b.

14.5 Choice of Contractor. With respect to any repairs for which proceeds of insurance are paid or are payable to the Association, the Board alone shall 41

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designate the contractor to perform the repairs to the Common Areas. Individual Owners shall be responsible for overseeing repairs done to their respective Units. 14.6 Choice of Insurance Company. All policies of insurance obtained by the Board shall be from an insurance company qualified to do business in the State of California and holding a Bests Insurance Reports rating of A or better or such other comparable rating as may be given by Standard and Poors. ARTICLE 15 ENFORCEMENT 15.1 Owner Enforcement Rights. These CC&Rs may be enforced by any Owner. Any Owner shall be entitled to bring an action against any defaulting Owner for damages or to enjoin any violation of these CC&Rs. 15.2 Association Enforcement Rights. In addition to any other rights described in these CC&Rs and without waiving the Associations right to institute other enforcement measures, and subject to the notice and hearing provisions described below, the Governing Documents may be enforced by any or all of the following as may be appropriate: a. Monetary Penalties. The Board may assess reasonable monetary penalties for violations of the Associations Governing Documents by an Owner or Owners family, Tenants, or guests. Monetary penalties may be incurred automatically on an ongoing basis for continuing violations, until the violation is cured. Owners shall be liable for all costs of collection of monetary penalties, including late fees and interest in the same amounts and manner as provided for delinquent Assessments, reasonable attorneys fees, court costs and related expenses. Demand to Cure. The Association may require an Owner to cure any violation existing in the Owners Unit or Exclusive Use Common Area. If followed by Association entry to cure as provided in these CC&Rs, unless otherwise provided, the Association shall give the Owner and Unit Resident, if different, at least 30 days prior written notice to cure the violation before serving notice of its intent to enter. Suspend Common Area Privileges. The Board may suspend the Common Area privileges of Owners and their family, Unit Residents, and guests, including parking spaces assigned by the Board, for failure by any of the above to comply with the Associations Governing Documents, including delinquency of more than 60 days in payment of any Assessment. Any such suspension shall be for a period of time not to exceed 30 days for any noncontinuing violation. For continuing violations, the suspension may be imposed for as long as the violation continues. Regular and Special Assessments shall continue to accrue and shall be due and payable notwithstanding the suspension of membership rights and privileges. Suspend Voting Rights. The Board may suspend an Owners voting rights for failure to comply with the Governing Documents as provided in the Bylaws. Regular and Special Assessments shall continue to accrue 42

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d.

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and shall be due and payable notwithstanding the suspension of membership rights and privileges. e. Judicial Enforcement. A lawsuit for damages and/or injunctive relief may be filed, whether or not the relief sought is for negative or affirmative action.

15.3 Nuisance; Remedy. Every act or omission by which any provision, covenant, condition, restriction, easements, or reservation contained in the Governing Documents is violated in whole or in part, is declared to be and constitutes a nuisance. Every remedy allowed by law or equity against a nuisance, either public or private, shall be applicable against every such act or omission and may be exercised by any Owner and the Association. Each remedy provided herein shall be cumulative and not exclusive. 15.4 Cumulative Remedies. The respective rights and remedies, provided by these CC&Rs or by law or available in equity, shall be cumulative and the exercise of any one or more of such rights or remedies shall not preclude or affect the exercise, at the same or at different times, of any other such rights or for the same or different failures of the Owners or others to perform or observe any provision of these CC&Rs. 15.5 Failure to Enforce Not a Waiver. Failure by the Board, any Owner or any other Person entitled to enforce the Governing Documents to enforce the same shall in no event be deemed a waiver of the right of such Person or of any other Person entitled to enforce the Governing Documents to enforce the same thereafter. Waiver or attempted waiver of any provision of these CC&Rs with respect to any Unit shall not be deemed a waiver as to any other Unit, nor shall the violation of any provision hereof in respect to any Unit or Units affect the applicability or enforceability of any provision of these CC&Rs in respect to any other Unit. 15.6 Notice and Hearing Procedures. Except as a result of nonpayment of Assessments or before seeking judicial enforcement or alternative dispute resolution, the following shall take place before the imposition of fines, suspension of privileges, or a requirement that violations be cured prior to Unit entry: a. Notice of Hearing. The Board shall set a hearing date and notify the Owner in writing at least 10 days in advance either personally or by prepaid first-class or registered mail to the most recent address of the Owner as shown on the Associations records. The notice shall set forth the date and nature of the violation, the proposed penalty, and the Owners right to present evidence in his or her defense, either in writing or in person at the hearing. Hearing. The hearing shall be held in executive session if the Owner requests. Notice of Decision. Within 15 days after the Board makes a decision on imposition of any penalties or fines, notice of the decision shall be given to the Owner which shall specify the violation and the penalty imposed.

b. c.

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15.7 Remedy at Law Inadequate. Remedies at law for violation of the Associations Governing Documents are inadequate and equitable and injunctive relief may be sought and awarded. 15.8 Right of Action Against Buyer. Failure by an Owner to correct Unit violations prior to the transfer of title to the Unit shall give the Association the right to enforce compliance against the buyer by any enforcement mechanism authorized by these CC&Rs. 15.9 Procedure for Internal Dispute Resolution. If the Association and an Owner are involved in a dispute involving their rights, duties, or liabilities under California law or the Governing Documents, either the Association or the Owner may invoke the following procedure: a. Written Request. Either party may request in writing that the parties meet and confer in an effort to resolve the dispute. The writing shall include a description of the dispute. (1) If the Owner initiates the request, the Association shall accept, unless the parties have already used this procedure to meet and discuss the same dispute within the past three months and to the Associations knowledge there has been no change in any relevant circumstances since that prior meeting. In that case, the Association may accept or reject the Owners request at its option. If the Association initiates the request, the Owner is not obligated to accept.

(2) b.

Association Designee. If the request is accepted, the Associations Board of Directors shall designate one or more members of the Board to meet and confer with the Owner. Meet and Confer. The parties shall meet promptly at a mutually convenient time and place, explain their positions to each other, and confer in good faith in an effort to resolve the dispute. Written Resolution. If the dispute is resolved, the agreed-upon resolution shall be put in writing and signed by the parties. The Board designee may sign on behalf of the Association unless the resolution exceeds the scope of authority given to the designee. In that case the resolution shall not be binding until it is approved and signed by the Board. No Fees. No fee shall be charged to the Owner for participation in this process. Limited Scope. This Section shall not apply to hearings held by the Association to consider imposition of discipline against an Owner or to require that a violation be cured before entry into a Unit. Neither shall this Section apply to parties proposing alternative dispute resolution 44

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before filing litigation as discussed in this Article. Exercising the provisions of this Section is not required before filing litigation. 15.10 Pre-Litigation Dispute Resolution. a. Application. This Section applies to any potential litigation between an Owner and another Owner or the Association over enforcement of the Governing Documents or California law relating to the Project. This Section applies to actions for declaratory or injunctive relief or writ relief, either alone or in conjunction with a money claim within the jurisdiction of small claims court. It does not apply to small claims actions, assessment disputes, or claims for money damages, only. Request for Resolution. Before filing a lawsuit covered under this Section, the party seeking litigation shall serve on the other a Request for Resolution. The Request for Resolution shall include (i) a brief description of the dispute, (ii) a request for either mediation or arbitration, (iii) a notice that the other party must respond within 30 days or the request will be deemed rejected, and (iv) if the party being served is an Owner, a copy of Civil Code Sections 1369.510 through 1369.590. The Request shall be served by personal delivery, first-class mail, express mail, fax, or other means reasonably calculated to provide the person with actual notice of the Request. Attempt to Resolve Dispute. If accepted by the other party, the mediation or arbitration shall be completed within 90 days of the receipt of acceptance by the party seeking litigation, unless extended by written stipulation of the parties. Costs. The parties shall share the costs of hiring an arbitrator or mediator unless otherwise determined as a result of the arbitration or mediation.

b.

c.

d.

15.11 Judicial Reference. At the request of either party, any litigation between the Association or any of its officers, Directors, or agents against each other or an Owner, or between two Owners, regarding enforcement of the Governing Documents or applicable statute shall be subject to and decided by judicial reference, to try any or all of the issues in the action or proceeding, whether of fact or of law. a. Appointment of Referee. Within 30 days after either party demands that the dispute be determined by judicial reference, the parties shall attempt to agree to the appointment of a retired judge of the Superior Court as referee. If the parties are not able to agree, either party may, upon ten days notice, apply to the presiding judge of the court to appoint a referee. Discovery. Discovery shall be permitted in the judicial reference proceeding, subject to any restrictions imposed by the referee. Trial. The trial of the dispute shall commence within 90 days of the appointment of the referee, unless the referee declares an extension of 45

b. c.

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time. Hearings shall be continuously conducted and diligently completed and the parties shall require that the referees statement of decision be reported to the parties within 20 days of completion of the hearings. d. Fees and Costs. Prior to the rendering of the referees decision, all costs of said judicial reference shall be borne equally by both parties. The prevailing party shall be awarded recovery of reasonable attorneys fees, costs of suit, and all other incurred costs, in addition to any other award made by the referee as part of any judgment decision. Entry of Judgment. The referees award shall be final and binding upon the parties. Judgment upon such award may be entered in any court having jurisdiction thereof, in accordance with applicable law.

e.

15.12 Attorneys Fees. In the event any party initiates any action or proceeding to enforce or interpret the Governing Documents or California law relating to the Project, the substantially prevailing party shall be awarded reasonable attorneys fees and costs, including reasonable experts fees. ARTICLE 16 RIGHT OF ENTRY 16.1 Right to Enter. During reasonable hours and subject to the notice requirements contained in this Article, the Associations representatives, employees, and vendors may enter Units, Common Areas and Exclusive Use Common Areas, including Balconies, for the following purposes. Such persons, acting in good faith, shall not be liable for trespass: a. Maintenance and Repairs. To inspect and perform necessary maintenance or repairs to the Unit; Exclusive Use Common Area, including the Balcony; or Common Area. Ensure Compliance. To ensure compliance with the Governing Documents. Protect property rights. To protect the property rights and welfare of the Owners. Cure Violation. To cure a violation of the Governing Documents.

b. c. d.

16.2 Notice of Entry. The Association shall give at least five business days written notice to the Resident of the Unit stating the purpose for the entry and the time of the entry. a. Service. Notice may be personally delivered or mailed to the Resident of the Unit and personally delivered or mailed to the Owners address of record, if different from the Unit address, unless the Owner has specified in writing a different location for notice to be sent.

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b.

Notice to Cure Violation. If entry is to cure a violation, notice of entry shall only be given after notice and hearing and the Owners failure to cure within a given time frame as required under these CC&Rs.

16.3 Avoid Unreasonable Interference. The right of entry shall be exercised in such a manner as to avoid any unreasonable or unnecessary interference with the possession, use and enjoyment of the Owner or Resident of such Unit. 16.4 Emergency Entry. In the event of an emergency, the Board shall make a good faith effort to give an opportunity to cure and notice of entry. However, if it is not feasible to allow time for cure or to seek permission for entry, or if permission is refused, the Board or its authorized representative may enter the Unit and shall not be subject to liability to the Owner or Resident and no trespass or other wrongful act shall be deemed to have been committed by reason of such entry. 16.5 Refusal to Allow Entry. If the Association seeks entry for any reason authorized in these CC&Rs and the Resident or Owner refuses to allow entry, the Association shall have the right to assess the Owner for all expenses, including reasonable attorneys fees (regardless of whether legal proceedings are instituted), incurred by the Association arising from the residents refusal to allow entry. Such fees and expenses shall become a Special Assessment against the Owner and shall be fully enforceable by all means provided for in these CC&Rs including lien and foreclosure. 16.6 Damage by Association. Any damage to the Common Area or Exclusive Use Common Area caused by the Association shall be promptly repaired by the Association. However, if it is necessary for the Association to damage or destroy property to gain access to the Unit for an emergency entry as described above, neither the Association nor its representatives shall be liable to the Owner for such damage, provided the Association shall repair the damage if the emergency did not originate in the Unit. 16.7 Owner Failure to Maintain. In the event any Owner fails to maintain his or her Unit or Exclusive Use Common Areas: a. Notice. The Board shall give written notice to such Owner, stating the work, maintenance or repair which the Board finds to be required and directing that the same be carried out within 20 days from the giving of such notice or such longer period as the Board believes may be reasonably required for the work. Board Authorized to Repair. In the event the Owner fails to carry out such maintenance or repairs within the period specified by the notice or within such longer period as may be reasonably required for its prompt completion, the Board may serve notice of entry as provided for in this Article, cause such work to be done, and assess all related costs to such Owner as a Special Assessment. Waiver of Liability. Neither the Association nor its Officers, Directors, Committee members, employees or agents shall be liable for any damage to person or property arising from the inspection, maintenance or repair of a Unit or its Exclusive Use Common Areas unless the loss or 47

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damage was caused by the negligence or willful misconduct of the Associations Officers, Directors, Committee members, employees or agents. ARTICLE 17 PROTECTION OF LENDERS 17.1 Definition of Lender, Mortgage, Mortgagee. As used herein, the term Lender shall refer to the holder of a first mortgage or deed of trust given by an Owner (or his predecessor in interest), the lien of which mortgage or deed of trust is superior to all other monetary encumbrances except real property taxes and Assessments. The term Mortgage shall mean and include a deed of trust. The term Mortgagee shall refer to a beneficiary (or its assignee) under a deed of trust and the term First Mortgagee shall refer to a beneficiary (or its assignee) under a deed of trust with priority over all other Mortgagees and deeds of trust. 17.2 Mortgagees Previously Existing Rights. To the extent any provision in these CC&Rs restricts or invalidates any rights of a Mortgagee available under the prior CC&Rs with respect to a Mortgage recorded against a Unit on the date of recordation of these CC&Rs, the restriction contained in such provision of these CC&Rs shall be invalid as to that Mortgagee with respect to such Mortgage, only. 17.3 Filing Notices; Notices and Approvals. A Mortgagee shall not be entitled to receive any notice or vote on any issue provided for in these CC&Rs unless it has delivered to the Board a written notice stating that it holds a first mortgage encumbering a Condominium within the Project and requesting such notice or right to vote. Any such notice and request delivered to the Board by a Mortgagee shall remain effective for so long as the facts set forth in such notice or request remain unchanged. 17.4 Written Notification to First Mortgagees. A First Mortgagee, upon request, is entitled to written notice from the Board of any default in the performance of an individual Unit mortgagor of any obligation under these CC&Rs and the Bylaws which is not cured within 60 days. It shall be the responsibility of each Owner of a Unit to notify the Association within 30 days of the close of his escrow to purchase a Condominium of the name and address of the holder of his or her first Mortgage on the particular Unit. 17.5 Exemption from Right of First Refusal. Any First Mortgagee which comes into possession of a Unit pursuant to the remedies provided in the Mortgage or foreclosure of the Mortgage shall be exempt from any right of first refusal. 17.6 Subordination of Assessment Lien to Mortgages. Any holder of a first mortgage or any third party purchaser who comes into possession of the Unit pursuant to the remedies provided in the mortgage or foreclosure of the Mortgage shall take the property free of any claim for unpaid Assessments or charges against the mortgaged Unit which accrue prior to the time such Person comes takes title to the Unit. The lien for Assessments provided for in these CC&Rs shall be subordinate to the lien of any first Mortgage or first deed of trust placed on the Unit; provided, however, that such subordination shall apply only to the Assessments which have become due and payable prior to a sale or transfer of such property pursuant to a decree of foreclosure or trustees sale. Such sale or transfer shall not relieve such
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property from liability for any assessments thereafter becoming due nor from the lien of any such subsequent assessment. 17.7 Leasing of Unit. The Owner of any Unit being leased or rented shall deliver to the Board within five days of such rental or lease an acknowledgment in writing signed by the Unit Owner and the Tenant confirming that such Tenant has received the CC&Rs and the Bylaws, and the Tenant acknowledges being bound by them. 17.8 Prior Approval of First Mortgagees. Unless at least 67% of the First Mortgagees on individual Units have given their prior written approval, or failed to deliver to the Association either an approval or rejection in writing within 30 days after the Association mails the First Mortgagee a request for approval by first class mail, return receipt requested, neither the Association nor the Owners shall: a. b. By act or omission seek to abandon or terminate the condominium regime; Change the pro rata interest or obligations of any Unit for the purpose of: (i) levying assessments or charges or allocating distribution of hazard insurance proceeds or condemnation awards, or (ii) determining the pro rata share of ownership of each Unit in the Common Area and common elements; By act or omission change, waive or abandon any material scheme of regulation, or enforcement thereof, pertaining to the architectural design or the exterior appearance of Units, the exterior maintenance of the Units, the maintenance of driveways, or the upkeep of landscaping within the Project; Partition or subdivide any Unit; By act or omission seek to abandon, partition, subdivide, encumber, release, hypothecate, sell or transfer the Common Area. The granting of easements for public utilities or for other public purposes consistent with the intended use of the Common Area by the Project shall not be deemed a transfer within the meaning of this clause; Fail to maintain fire and extended coverage on insurable Project common property and Units on a current replacement cost basis in an amount not less than 100% of the insurable value (based on current replacement costs); Use hazard insurance proceeds for losses to any Project common property for other than repair, replacement or reconstruction of such improvements; Materially amend the CC&Rs or Bylaws of the Association governing the following subjects: (1) The percentage interest of each Owner in the Common Areas; 49

c.

d. e.

f.

g.

h.

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(2) (3) (4) (5) (6) (7) (8) (9) (10)

The fundamental purpose for which the Project has been created; Voting rights; Assessments, assessment liens and subordination thereof; The reserve for repair and replacement of common elements; Property maintenance obligations; Casualty and liability insurance; Reconstruction in the event of damage or destruction; Rights to use the common elements; or Annexation of additional real property.

17.9 Examination of Books and Records. Each First Mortgagee shall have the right to examine the books and records of the Association. 17.10 Taxes, Assessments and Charges. All taxes, charges and Assessments which may become liens prior to First Mortgages under local law shall relate only to the individual Units and not to the Project as a whole. First Mortgagees of Units may jointly and singly pay taxes or other charges which are in default and which may or have become a charge against the common property, and may pay overdue premiums on hazard insurance policies or secure new hazard insurance coverage on the lapse of a policy for such property, and first Mortgagees making such payments shall be owed immediate reimbursement therefor from the Association. 17.11 Reserves for Replacement. An adequate reserve fund for replacement of the Common Area facilities must be established by the Association and shall be funded by regular monthly Assessments, rather than by special Assessments. 17.12 No Priority Over Rights of First Mortgagees. No provision herein shall give a Condominium Owner or any other party priority over any rights of first Mortgagees of Condominiums pursuant to their mortgages in the case of a distribution to Condominium Owners of insurance proceeds or condemnation awards for losses to or a taking of Condominiums and/or the Common Area. Such first Mortgagees shall be entitled to timely written notice of any such damage or destruction, if such loss or taking exceeds $10,000 or damage to a Condominium covered by a Mortgage exceeds $1,000. Additionally, if any Condominium or portion thereof is made the subject matter of any condemnation or eminent domain proceeding, no provision herein shall entitle the Owner of a Condominium or any other party, to priority over a first Mortgagee of a Condominium with respect to any distribution to such Condominium of the proceeds of any award or settlement. Such first Mortgagees shall be entitled to timely written notice of any such proceeding or proposed acquisition. 17.13 Further Notice to Lenders. a. The Association shall give written notice to any first Mortgagee, upon such Mortgagees request, of all meetings of the Association. Each such 50

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first lien holder shall have the right to be represented at such meeting, but shall have no voting rights unless it has succeeded to title to one or more of the Condominiums by foreclosure. b. c. The Association shall give written notice to any first Mortgagee of any material amendment to these CC&Rs and/or the Association Bylaws; The Association shall deliver to each such first Mortgagee, upon such Mortgagees request, a copy of the Associations annual financial statement.

17.14 Conflict. If there is any conflict between the provisions of this Article and any other provisions in these CC&Rs or the Bylaws, the language contained in this Article shall control. 17.15 Modifying or Amending. Any amendment to this Article shall require the consent of beneficiaries holding 67% of the first trust deeds which may be then of record as valid encumbrances against the Project or any portion thereof. Said amendment to these CC&Rs shall be effective when recorded in the office of the County Recorder. ARTICLE 18 LIMITATIONS OF LIABILITY 18.1 Limited Personal Liability. No Officer, Director, Committee member, or employee of the Association shall be personally liable for any loss, injury, or damage to persons or property for any act or omission if the act or omission was performed in good faith, was within the scope of the persons duties for the Association, if it was not self-dealing, and if it did not constitute intentional misconduct or gross negligence. 18.2 Association Not a Security Provider. The Association may, from time to time, provide measures of security at the Project. However, the Association is not a provider of security and shall have no duty to provide any security at the Project. The obligation to provide security lies solely with each Owner individually. The Association shall not be held liable for any loss or damage by reason of failure to provide adequate security or ineffectiveness of security measures undertaken. 18.3 Duty to Defend. The Association shall indemnify and defend and shall advance reasonable attorneys fees and costs as follows to its Officers, Directors, Committee members, and employees (for purposes of this Section, Agents) against all expenses and liabilities reasonably incurred by Agents in connection with any proceeding (including, but not limited to, alternative dispute resolution proceedings) to which they may be a party by reason of having been an Officer, Director, Committee member or employee of the Association, if the Agent acted in good faith and in a manner the Agent reasonably believed to be in the best interests of the Association and, in the case of a criminal proceeding, had no reasonable cause to believe the Agents conduct was unlawful. A. Association v. Agent. In any action against the agent brought by or in the right of the Association to procure a judgment in its favor, the Association shall indemnify the Agent if the Agent acted in good faith, in 51

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a manner which the Agent believed to be in the best interests of the corporation, and with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances. However, for any such actions brought by the Association, the Association may recover its attorneys fees and costs from, and shall not be liable for any of the following judgments or other liabilities. (1) Any claim, issue or matter as to which the Agent is adjudged to be liable to the Association in the performance of his or her duty to the Association, except to the extent that the court determines that the Agent is entitled to indemnity; Amounts paid in settling or otherwise disposing of a threatened or pending action, with or without court approval; or Expenses incurred in defending a threatened or pending action which is settled or otherwise disposed of without court approval.

(2) (3) B.

Approval of Indemnification. If an agent of a corporation has been successful on the merits in defense of any proceeding or claim, issue or matter presented in the proceeding, the agent shall be indemnified against expenses actually and reasonably incurred. In other situations, the Association may indemnify Agents only if authorized in the specific case, upon a determination that indemnification of the Agent is proper in the circumstances because the Agent has met the applicable standard of conduct set forth in this Section, by: (1) (2) (3) A majority vote of a quorum consisting of Directors who are not parties to such proceeding; Approval of the a majority of a quorum of the Owners, with the Agent not being entitled to vote; or The court in which the proceeding is or was pending.

C.

Insurance. This Section does not affect the Associations right and obligation to purchase directors and officers insurance and general liability insurance providing coverage to Agents. This Section shall only apply to the extent insurance coverage is not available under any such policies.

18.4 Waiver by Members. If it will not void or impair the Associations insurance, each Owner hereby waives and releases all claims against the Association, its employees, Directors, Officers, Committee members, and agents, and all other Owners with respect to any loss covered by any insurance policy maintained by the Association, to the extent of insurance proceeds actually received by the Owner or applied to the Owners benefit. This applies whether or not the claim was caused by the negligence of, or breach of any agreement by, said persons, but only to the extent of the insurance proceeds received in compensation for such loss.

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18.5 Association Not Responsible for Loss. Neither the Association nor its Officers, Directors, Committee members, employees or agents shall be liable for any loss or damage suffered by reason of theft of or damage to any article or thing which is placed or stored in or on any portion of the Project. 18.6 Personal Injury or Property Damage Sustained Within a Unit. The following shall apply if any Person sustains personal injury or property damage within a Unit or on its attached Balcony and the injury or damage results in a claim against the Association or any of its Officers, Directors, Committee members, Owners, agents or employees. The owner of the Unit or Balcony where the injury or damage occurred shall (i) fully indemnify and hold harmless the Association, Officer, Director, Committee member, Owner, agent or employee against whom such claim or suit is brought and (ii) defend at his own cost and expense any resulting litigation against said parties; provided that there shall be no obligation to defend or indemnify any party whose gross negligence or willful misconduct was the sole cause of the injury or damage. If the Unit is jointly owned, its owners shall have joint and several liability. This Section shall not apply to injury or damages caused by structural problems. ARTICLE 19 DAMAGE/DESTRUCTION TO IMPROVEMENTS 19.1 Common Area Damage. In the event the Common Area is partially or totally destroyed by fire, earthquake or other casualty: a. Cost of Reconstruction. As soon as practical, the Board shall: (i) obtain bids from at least two reputable contractors, licensed in California and insured, which bids shall set forth in detail the work required to reconstruct the damaged or destroyed portions of the Common Area to substantially the same condition as they existed prior to such damage and the itemized cost of such work (subject to any increased building standards then in effect), and (ii) determine the amount of all insurance proceeds and reserves available to the Association for the purpose of effecting such reconstruction. Automatic Reconstruction. If the cost to reconstruct the Common Areas (minus the value of any insurance proceeds due the Association) is less than or equal to three times the amount of the total annual operating budget of the Association for the prior fiscal year, the Board, without a vote of the membership, shall cause the Common Area to be reconstructed to substantially the same condition as existed prior to such damage (subject to any increased building standards then in effect), unless changes recommended by the Board have been approved in writing by 75% of the Owners and 75% of first mortgage holders. Such reconstruction shall be completed as promptly as practical. Notwithstanding any other provision, the Board shall have the authority, without a vote of the membership, to levy a Special Assessment against the membership to provide the funds necessary for such reconstruction and/or for repayment of any monies borrowed by the Association for such reconstruction. Membership Approval. If the Board determines that the cost to reconstruct the Common Areas (minus the value of any insurance 53

b.

c.

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proceeds due the Association) is an amount greater than three times the total annual operating budget of the Association for the prior year, then the Common Areas shall be reconstructed unless 75% of the membership, by ballot or at a special meeting called for such purpose, vote not to reconstruct the damaged or destroyed Common Areas. 19.2 Decision Not to Rebuild. In the event the membership votes not to rebuild the Common Areas: a. Certificate Not to Rebuild. Within 30 days after such vote, the Board shall cause to be executed, acknowledged and recorded in the Office of the County Recorder a certificate setting forth the Associations intention not to reconstruct the Common Area; Right of Partition Revived. Immediately upon the recordation of such a certificate, the right of partition suspended by these CC&Rs shall be revived; Revised Subdivision Map. The Board shall, as soon as practical, cause to be prepared, filed and/or recorded any revised subdivision map, Condominium Plan or other documents, reports, schedules or exhibits necessary to show the changed or altered status of the Project, including, without limitation, the elimination of all or part of one or more of the Units as a result of such damage; Sale of Project. A membership vote not to rebuild as set forth above may also include approval to sell the entire Project. On such approval, each Owner hereby appoints the Association as attorney-in-fact and irrevocably grants to the Association, acting through its Board, full power in the name and stead of such Owner to sell the entire Project for the benefit of all Owners. This power of attorney shall be binding on all Owners and shall be exercised only after recordation of a power of attorney, which shall be conclusive evidence in favor of any Person relying thereon in good faith; and Distribution of Insurance Proceeds. If the entire Project, including all Units and all Common Area, is sold, the Board shall distribute the insurance proceeds available for such reconstruction together with any other sums otherwise available to the Association for such purpose to the Owners, less costs for clearing the debris, collecting insurance proceeds, and any other expenses necessary as a result of the damage or destruction, proportionately according to an appraised fair market value of the Condominiums (as of a date immediately prior to destruction or condemnation). Such payment shall be subject to rights of Mortgagees holding Mortgages encumbering Units and all unpaid Assessments together with any interest charges. Appraisers hired by the Board to appraise the Condominiums will be paid by the Association. If Units remain after the destruction and decision not to rebuild Common Area, then the portion of proceeds attributable to Units which are destroyed and not rebuilt, if any, shall be distributed in accordance with the above. The remainder of the insurance proceeds shall be deposited in the Associations reserves. 54

b.

c.

d.

e.

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19.3 Elimination of Units. In the event of the elimination of all of a Unit, the Unit shall cease to be part of the Project, the owner of the Unit shall cease to be a member of the Association, and the interest in the Common Area appurtenant to that Unit shall automatically become vested in the Owners of the remaining Units in proportion to their respective interests in the Common Area. In the event of the elimination of a part of a Unit, the Common Area interest appurtenant to that Unit shall be reduced in direct proportion to the reduction in square footage of the Unit, and the Common Area interests and Assessment obligations of all Owners shall automatically be adjusted accordingly. The Owner of an eliminated Unit shall quitclaim to the remaining Owners his or her interest in the Common Area as appropriate under this Section. 19.4 Duties of Board During Reconstruction. If reconstruction is undertaken, the Board shall (i) enter into a written contract with a contractor who is licensed and insured for such repair, reconstruction and restoration; (ii) disburse insurance proceeds available for the work along with funds collected by reason of Assessments in appropriate progress payments; and (iii) take all steps necessary to ensure the commencement and completion of such repair, reconstruction and restoration in a lawful, workmanlike manner at the earliest possible date. 19.5 Labor and Materials. In determining whether the plans for a reconstructed Building are in substantial conformance with the Condominium Plan, the Board may take into consideration the availability and expense of the labor and materials in the original construction of the Building. If such labor or material is not available or is prohibitively expensive at the time of reconstruction, the Board may permit the substitution of other labor or material as it deems proper. 19.6 Special Assessment for Reconstruction. In the event the proceeds of insurance obtained by the Association are paid to any Mortgagee of a Unit, and by reason of such payment the insurance proceeds are not made available to the Association as trustee or otherwise to effect any repair, reconstruction or restoration of any damage and/or destruction to all or any portion of the Project as provided in these CC&Rs, the amount of such proceeds not made available shall be assessed and charged solely to and against the Owner and his or her Unit as a Special Assessment. 19.7 Change of Condominium Plan. The Board may amend the Condominium Plan to reflect changes made to the Project pursuant to this Article. If so, the amendment shall be executed and acknowledged in compliance with California Civil Code Section 1351(e) or any similar statute then in effect, and the Association and/or the Owners and holders of security interests, as required, shall execute any other documents and take other actions required to make the amendment effective. ARTICLE 20 CONDEMNATION 20.1 Notice. Promptly upon learning of any potential condemnation or sale by eminent domain, the Board shall notify all Owners and first mortgagees who have filed a written request for notice. 20.2 Common Action. In the event that an action in eminent domain is brought to condemn all or any portion of the Common Areas, the Association shall represent the Owners in all proceedings, negotiations or settlements. Awards for the
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acquisition of Common Area shall be paid to the Board, as trustee, for deposit into the Associations reserves or for distribution to the Owners. 20.3 Condemnation Awards. In the event that an action in eminent domain is brought to condemn all or any portion of one or more Units the award made for such taking shall be payable to the respective owners of the Units subject to: (i) the rights of Mortgagees holding Mortgages covering such Units and (ii) all unpaid Assessments of each Owner taken together with interest charges. a. Apportionment per Condemnation Award. If a condemnation judgment apportions the award among the Owners, the Board shall distribute any amount remaining after deductions according to the terms of the judgment allocation. Other Apportionments. If the property is sold under threat of condemnation (or if the judgment of condemnation fails to apportion the award), the Board will distribute the award proportionately to each Unit according to an appraised fair market value of the Condominiums (as of a date immediately prior to destruction or condemnation). Appraisers hired by the Board to appraise the Condominiums will be paid by the Association.

b.

20.4 Substantial Taking. If there is a taking of more than 50% of the Project and more than 50% of the total voting power of the Association elects to terminate, the Owners may terminate the legal status of the Project and, if necessary, bring a partition action under California Civil Code Section 1359 or any successor statute. The proceeds from the partition sale, less any costs or fees incurred, shall be distributed to the Owners and their respective mortgagees in accordance with their Common Area interest, where the Condominiums are not valued separately by the condemning authority or by the court. 20.5 Revision of Documents. In the event of any condemnation of a part of the Project, the Board shall, as soon as practical, cause to be prepared, filed and/or recorded a revised subdivision map, Condominium Plan or other documents, reports, schedules or exhibits necessary to show the changed or altered status of the Project. 20.6 Status of Membership. In the event a Unit is taken in condemnation, that Unit shall cease to be part of the Project, the Owner shall cease to be an Owner or a member of the Association, and the Common Area interest appurtenant to that Unit shall automatically become vested in the remaining Owners in proportion to their respective Common Area interests. 20.7 Change of Condominium Plan. The Board may amend the Condominium Plan to reflect changes made to the Project pursuant to this Article. If so, all relevant Owners and security interest holders must execute and acknowledge the amendment, in compliance with California Civil Code Section 1351(e) or any similar statute then in effect, and execute any other documents and take other actions required to make the amendment effective.

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ARTICLE 21 MISCELLANEOUS 21.1 Notice of Airport in Vicinity. This property is presently located in the vicinity of an airport, within what is known as an airport influence area. For that reason, the property may be subject to some of the annoyances of inconveniences associated with proximity to airport operations (for example: noise, vibration, or odors). Individual sensitivities to those annoyances can vary from person to person. You may wish to consider what airport annoyances, if any, are associated with the property before you complete your purchase and determine whether they are acceptable to you. 21.2 a. Amendment. Amendment by Owners. These CC&Rs may be amended by the vote or written consent of Owners comprising at least a majority of the Owners or as provided for in Section 1356 of the Civil Code or any successor statutes, provided that the percentage of Owners necessary to amend a specific provision shall not be less than the percentage of affirmative votes prescribed for action to be taken under that provision. (1) Any amendment enacted in compliance with this provision shall become effective when recorded with the Office of the County Recorder. Any Owner vote on amendments to the CC&Rs shall be conducted by secret written ballot, using the procedures for ballots, proxies, inspectors of election, tabulating the vote, and storage and availability of ballots set forth in the Bylaws.

(2)

b.

Amendment to Conform to Statute. If at any time a provision in these CC&Rs contradicts current law according to a written opinion of the Associations legal counsel, the Board of Directors will have the authority, on the unanimous approval of the Directors and without approval of the Owners, to amend that provision, but only to the extent necessary to render the provision compliant with applicable law.

21.3 Term of CC&Rs. These CC&Rs shall continue in full force and effect for a term of 60 years from the date of their recordation, after which time they shall be automatically extended for successive periods of 20 years unless within six months prior to the expiration of the initial term or any 20-year extension period a written agreement executed and acknowledged by at least 75% of the Owners is placed on record in the office of the County Recorder terminating the effectiveness of these CC&Rs. 21.4 Conflict. If there is any conflict between the Governing Documents, the order or priority shall be (i) the Condominium Plan, (ii) these CC&Rs, (iii) the Bylaws, (iv) any architectural Rules, and (v) the remaining Rules. 21.5 No Right of Partition. No proceeding shall be brought for the partition of the Common Area except as provided by Section 1359 of the California Civil Code as the Section may be amended from time to time.
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21.6 Homestead Waiver. Each Owner, to the extent permitted by law, hereby waives, to the extent of any liens created pursuant to these CC&Rs, whether now in existence or created at any time in the future, the benefit of any homestead or exemption laws of the State of California now in effect, or in effect from time to time hereafter. 21.7 Restrictive Agreements. No Owner shall execute or file for record any instrument which imposes a restriction upon the sale, leasing or occupancy of the Owners Unit on the basis of race, color, creed, sex, familial status, or any other discriminatory factor prohibited by California or federal law for the providing of housing. Failure to enforce this provision shall not constitute a waiver of the right to enforce this provision in other situations. 21.8 Attorneys Fees. Any reasonable attorneys fees and costs incurred by the Association in the enforcement of the Governing Documents against an Owner, or to determine the rights or duties of the Owner under the Governing Documents, may be levied against that Owner by the Board as a Special Assessment which may be collected in any manner provided for by these CC&Rs or by law, including without limitation lien and foreclosure. 21.9 Notices. Any communication or notice of any kind permitted or required herein may be delivered as provided in these CC&Rs and shall be in writing and may be served, as an alternative to personal service, by mailing same as follows: To an Owner: To the street address of the Unit or at such other address as the Owner may designate in writing to the Association. To the address of the manager or the Board President.

To the Association:

All notices or demands to be served by mail shall be by first-class mail with postage prepaid. Service shall be deemed to be completed three business days after such mailing. 21.10 Headings. The headings contained in these CC&Rs are solely for the convenience of reference and are not a part of and are not intended to govern, limit or aid in the construction of any term or provision of these CC&Rs. 21.11 Liberal Construction. The provisions of the Governing Documents shall be liberally construed to effectuate their purpose of creating a uniform plan for the use, operation and maintenance of the Project. 21.12 Number and Gender. Whenever the context so requires, the singular number includes the plural, the plural includes the singular, the masculine gender includes the feminine and/or neuter and the neuter gender includes the masculine and/or feminine. 21.13 Severability. The provisions of these CC&Rs and any other Governing Document shall be deemed independent and severable, and the invalidity or partial invalidity or unenforceability of any one provision shall not affect the validity or enforceability of any other provision.
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21.14 No Public Rights. Nothing contained in these CC&Rs shall be deemed to be a gift or dedication of all or any portion of the Project to the general public or for any public use or purpose whatsoever. 21.15 Successor Association. In the event the Association as a corporate entity is dissolved, a nonprofit, unincorporated association shall without further action automatically succeed to all the rights and duties of the corporation. The affairs of the unincorporated association shall continue to be governed by these CC&Rs, the Bylaws, and the Rules as well as any applicable law. CERTIFICATION WE CERTIFY this day of , 201__ that this Restated Declaration of Covenants, Conditions and Restrictions has been duly approved and adopted by at least 67% of the members of the Association. The President and Secretary of the Association, by their signatures below, hereby declare that the above information is true and correct. WESTCHESTER WOODS HOMEOWNERS ASSOCIATION

By: President By: Secretary

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State of California County of _____________________

) ) )

On __________________________, 201__, before me, (here insert name and title of the officer) , notary public, personally appeared _________________________ ________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature:______________________________________ [S E A L] State of California ) ) County of ________________________ ) On __________________________, 201__, before me, (here insert name and title of the officer) , notary public, personally appeared _________________________ ________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature:______________________________________ [S E A L]

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EXHIBIT A
Allocation Schedule for Assessments

Legal Address Unit Description

% Share per Dues 0.8377% 0.9552% 0.9493% 0.9588% 0.8570% 0.8570% 0.9403% 0.8704% 0.9501% 0.9635% 0.9403% 0.8715% 0.8715% 0.9403% 0.9635% 0.9513% 0.8746% 0.9415% 1.0939% 1.0923% 0.8322% 0.8322% 0.8393% 0.8440% 0.8440% 0.8393% 0.9989% 1.0366% 0.9556% 0.9493% 0.9588% 0.8570% 0.8570% 0.9403% 0.8704%

8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650
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Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford

101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 200 201 202 203 204 205 206 207 208

B101 B102 B103 B104 B105 B106 B107 B108 B109 B110 B111 B112 B113 B114 B115 B116 B117 B118 B119 B120 B121 B122 B123 B124 B125 B126 B200 B201 B202 B203 B204 B205 B206 B207 B208

Exhibit A - Page 1

Legal Address Unit Description

% Share per Dues 0.9501% 0.9635% 0.9403% 0.8715% 0.8715% 0.9403% 0.9635% 0.9513% 0.8711% 0.9415% 1.0939% 1.0923% 1.0366% 1.0366% 1.0807% 1.0900% 1.0900% 1.0807% 0.8377% 0.9552% 0.9493% 0.9588% 0.8570% 0.8570% 0.9403% 0.8704% 0.9501% 0.9635% 0.9403% 0.8715% 0.8715% 0.9403% 0.9635% 0.9513% 0.8746% 0.9415% 1.0939% 1.0923% 0.8322% 0.8322% 0.8393%

8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8650 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710
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Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford

209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123

B209 B210 B211 B212 B213 B214 B215 B216 B217 B218 B219 B220 B221 B222 B223 B224 B225 B226 B101 B102 B103 B104 B105 B106 B107 B108 B109 B110 B111 B112 B113 B114 B115 B116 B117 B118 B119 B120 B121 B122 B123

Exhibit A - Page 2

Legal Address Unit Description

% Share per Dues 0.8440% 0.8440% 0.8393% 0.9989% 1.0366% 0.9556% 0.9493% 0.9588% 0.8570% 0.8570% 0.9403% 0.8704% 0.9501% 0.9635% 0.9403% 0.8715% 0.8715% 0.9403% 0.9635% 0.9513% 0.8711% 0.9415% 1.0939% 1.0923% 1.0366% 1.0366% 1.0807% 1.0900% 1.0900% 1.0807% 100.0000%

8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710 8710

Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford Belford

124 125 126 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226

B124 B125 B126 B200 B201 B202 B203 B204 B205 B206 B207 B208 B209 B210 B211 B212 B213 B214 B215 B216 B217 B218 B219 B220 B221 B222 B223 B224 B225 B226

CC&Rs002.wpd

Exhibit A - Page 3

EXHIBIT B
Maintenance and Repairs

UNIT WALLS, CEILINGS AND FLOORS

Owner 1. Interior wall surfaces and coverings - paint, wallpaper, paneling, mirrors, etc. Drywall and plaster forming all Unit interior and perimeter walls - taping, patching, repair and replacement Interior non-perimeter walls (walls between rooms in the Unit) - non-load bearing walls and partitions Interior non-perimeter walls (walls between rooms in the Unit) - bearing walls Perimeter walls surrounding the Unit, except for drywall and plaster as defined above Ceiling surfaces Floor coverings - carpeting, hardwood, tile, marble, granite, vinyl, etc. Unfinished slab and/or sub-floors Nail popping in flooring and/or subfloors - cure to eliminate noise in neighboring Units Association

2. 3. 4. 5.

6. 7. 8. 9.

WINDOWS AND DOORS

Owner 1. 2. 3. 4. 5. 6. Window glass panes - maintenance, repair and replacement; cleaning (both sides) Window mullions, screens, hardware, weatherstripping, waterproofing, etc. - maintenance, repair and replacement Window frames and door frames - maintenance, repair and replacement Window frames and door frames - painting - exterior Entry door - interior finish Entry door - hardware, locks, knobs, hinges, weatherstripping, frames, thresholds, door casings, caulking, sealants, door guides, etc. - maintenance, repair and replacement Association

Exhibit B - Page 1

Owner 7. 8. 9. Sliding door frame, threshold, slider, door casing, hardware, rollers, weatherstripping, etc. Sliding door glass panes Interior doors and hardware (bedrooms, closets, bathrooms, etc.)

Association

ELECTRICAL, TELEPHONE, CABLE

Owner 1. 2. 3. 4. 5. 6. Electrical panel and breakers for Unit located inside Unit Electrical wiring in Units perimeter walls Light switches, electrical outlets and wall plates inside Unit Light fixtures - in Unit Light fixtures - on Balconies, walkways, and Common Areas Telephone lines, cable television, computer lines, DSL cables, etc. servicing a single Unit Association

WATER AND UTILITY LINES

Owner 1. 2. Water lines feeding into one Unit, located in walls Sewer lines, drain lines and water lines between one Unit and a common line, wherever located keep lines open and unobstructed; maintain, repair and replace Sewer lines, drain lines and water lines servicing two Units - keep lines open and unobstructed; maintain, repair and replace (Owners of the two Units served by the line share responsibility) Utility lines servicing more than one Unit, including water, irrigation, fire sprinkler, and common entry system telephone lines Doorbells and intercoms hooked up to just one Unit Hose bibs, faucets and spigots Pressure regulators serving common lines Association

3.

4.

5. 6. 7.

KITCHEN
Owner 1. 2. Garbage disposals and clogs Appliances (dishwasher, refrigerator, oven, stove, range hood, etc.) Association

Exhibit B - Page 2

Owner 3. 4. Cabinets and counter tops All plumbing equipment and fixtures, including sinks and faucets

Association

BATHROOMS
Owner 1. 2. Plumbing fixtures, including tubs, showers, sinks, faucets, shower pans, toilets, tank mechanisms, and wax rings Tub and shower valves, drain lines, and angle stops which exclusively service the Unit or which are located inside the Unit Vanities, cabinets, counter tops Heater and fan Common area bathrooms - cleaning, maintenance, repairs and replacement Association

3. 4. 5.

BALCONIES, ROOF DECKS WALKWAYS AND ENTRY AREAS

Owner 1. 2. 3. 4. 5. 6. 7. Balconies, roof decks, porches and walkways waterproofing Balconies - clean and maintain; clear debris from drainage devices Roof deck surfaces - clean and maintain; clear debris from drainage devices Walkway surfaces - clean and maintain Balcony wall, fence, or gate - surface of the side facing the Unit - paint and maintain interior surface Roof deck - paint and maintain interior surface Roof deck, Balcony wall, fence, gate - repairs and replacement (unless damaged by improper owner maintenance) Roof deck, Balcony wall, fence, gate - surface of the side facing out - paint and maintain Landscaping within roof deck, Balcony Light bulbs - roof deck, Balcony, porch, walkway Roof deck or Balcony support structure - repair or replace Association

8. 9. 10. 11.

Exhibit B - Page 3

THE BUILDING EXTERIOR

Owner 1. 2. 3. Address numbers and address lights Awnings not installed by owner Foundations and slabs Owner 4. 5. 6. Paint - walls Exterior walls (including stucco) and roofs Rain gutters Association Association

MECHANICAL AND OTHER EQUIPMENT

Owner 1. Heating and air conditioner equipment, ducts, grills, drip pans, heat exchangers, valves, compressors, control equipment, thermostats, etc. servicing only one Unit Air conditioner pad servicing only one Unit Hot water heater servicing only one Unit Chiller servicing only one Unit Smoke alarms inside Unit Heaters, air conditioners, chillers, etc. servicing the common area or multiple Units Association

2. 3. 4. 5. 6.

MISCELLANEOUS
Owner 1. 2. Garage and parking spaces - unfinished flooring slab, including painting parking lines Insects, rodents, or wood-destroying pests or organisms maintenance and repair of Owners personal property and Unit as required to control infestation or damage Insects, rodents, or wood-destroying pests or organisms treat and repair Common Area infestation or damage Insects, rodents, or wood-destroying pests or organisms all costs associated with obtaining a termite clearance certificate sought by Owner, including maintenance and repair of the Unit, Exclusive Use Common Area, or Common Area Reception - TV, satellite, cable, audio, Internet, etc. Dryer vents for dryers in Unit- maintenance and cleaning Trash removal Association

3. 4.

5. 7. 9.

Exhibit B - Page 4

Owner 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Storage lockers - maintain, repair and replace Storage lockers - exterior paint Common area hallways, staircases, landings servicing multiple Units Pools Gym and Association-owned gym equipment Recreation room Laundry rooms Mailbox for Unit - repair/replace Mailbox for Unit - lock and key Any other portion of the Common Area servicing more than one Unit

Association

Exhibit B - Page 5