Westchester Woods CC&Rs Los Angeles 90045

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CC&Rs002.wpd 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.

description

The rules and regulations for the Westchester Woods condominiums in Los Angeles, CA

Transcript of Westchester Woods CC&Rs Los Angeles 90045

CC&Rs002.wpd

Jeanne H. McDonald, Esq.15760 Ventura Boulevard, Suite 700Encino, CA 91436

RESTATEDDECLARATION OF COVENANTS, CONDITIONS

AND RESTRICTIONSESTABLISHING A PLAN

OF CONDOMINIUM OWNERSHIP

of

WESTCHESTER WOODS

HOMEOWNERS ASSOCIATIONa California nonprofit mutual-benefit corporation

located at8650 and 8710 Belford AvenueLos Angeles, California 90045

If this document contains any restriction based on race, color,religion, sex, sexual orientation, familial status, maritalstatus, disability, national origin, source of income as definedin subdivision (p) of Section 12955, or ancestry, thatrestriction violates state and federal fair housing laws and isvoid, and may be removed pursuant to Section 12956.1 of theGovernment Code. Lawful restrictions under state and federallaw on the age of occupants in senior housing or housing forolder persons shall not be construed as restrictions based onfamilial status.

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TABLE OF CONTENTS

ARTICLE 1 DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.1 “Assessment”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.2 “Association”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.3 “Balcony” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.4 “Board” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.5 “Building” .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.6 “Bylaws” .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.7 “CC&Rs” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.8 “Committee” .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.9 “Common Area” .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.10 “Common Expenses” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.11 “Condominium” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.12 “Condominium Plan” .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.13 “Director” .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.14 “Exclusive Use Common Area” . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.15 “Governing Documents” .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.16 “Improvements” .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.17 “Officer” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.18 “Owner” .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.19 “Person” .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.20 “Project” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.21 “Regular Assessments” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.22 “Resident” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.23 “Rules” .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.24 “Special Assessments” .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.25 “Tenant” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.26 “Unit” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.27 “Vehicle” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.28 Definitions of Other Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

ARTICLE 2 THE ASSOCIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.1 Management of the Association... . . . . . . . . . . . . . . . . . . . . . . . . . 42.2 Powers of a Nonprofit Corporation... . . . . . . . . . . . . . . . . . . . . . . . 42.3 Specific Powers of the Association. . . . . . . . . . . . . . . . . . . . . . . . . 4

a. Enforcement of Governing Documents. . . . . . . . . . . . . . . . . . 4b. Enactment of Rules.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5c. Incur and Pay Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6d. Charge Fees.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6e. Pay Taxes and Assessments. . . . . . . . . . . . . . . . . . . . . . . . . 6f. Borrow Money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6g. Represent Association in Litigation. . . . . . . . . . . . . . . . . . . . 6h. Property of Association. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7i. Foreclose and Hold Title. . . . . . . . . . . . . . . . . . . . . . . . . . . 7j. Delegation to Manager.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7k. Approval Revocable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.4 Limitation on Professional Management Contract. . . . . . . . . . . . . . . 72.5 Limitations on Sale of Property. . . . . . . . . . . . . . . . . . . . . . . . . . . 72.6 Limitations on Capital Improvements. . . . . . . . . . . . . . . . . . . . . . . 72.7 Vendor Contract Limitations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

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2.8 Nonprofit Character of Association.. . . . . . . . . . . . . . . . . . . . . . . . 8

ARTICLE 3 MEMBERSHIP.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83.1 Membership... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83.2 Proof of Membership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83.3 Trusts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83.4 Voting Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93.5 Inspection of Records.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93.6 Obligation to Follow Governing Documents.. . . . . . . . . . . . . . . . . . . 93.7 Supervision of Minors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93.8 Provide for Security.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93.9 Purchase Subject to Violations.. . . . . . . . . . . . . . . . . . . . . . . . . . . 93.10 Obligation to Provide Access. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93.11 Delivery of Documents to Prospective Buyers. . . . . . . . . . . . . . . . . . 93.12 Notice of Transfer of Ownership or Occupancy. . . . . . . . . . . . . . . . 103.13 Notice of Mortgage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

ARTICLE 4 PROPERTY RIGHTS AND EASEMENTS.. . . . . . . . . . . . . . . . . . . . . . . 104.1 Ownership of Common Areas. . . . . . . . . . . . . . . . . . . . . . . . . . . . 104.2 Ingress, Egress and Support. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104.3 Easement of Enjoyment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104.4 Easement for Encroachment. . . . . . . . . . . . . . . . . . . . . . . . . . . . 104.5 Utility Rights and Duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114.6 Prohibition Against Severance. . . . . . . . . . . . . . . . . . . . . . . . . . . 114.7 No Power to Encumber Real Property. . . . . . . . . . . . . . . . . . . . . . 114.8 Association Easement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114.9 Conveyances; Limitation on Granting Easements.. . . . . . . . . . . . . . 11

ARTICLE 5 MAINTENANCE AND REPAIR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125.1 Maintenance Standards.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125.2 Association Responsibility for Common Areas... . . . . . . . . . . . . . . . 125.3 Owners’ Responsibility for Units. . . . . . . . . . . . . . . . . . . . . . . . . 125.4 Association’s and Owners’ Maintenance and Repair

Responsibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125.5 Termites and Pests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125.6 Power to Vacate Unit.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125.7 Association Repairs of Damage.. . . . . . . . . . . . . . . . . . . . . . . . . . 135.8 Limitation of Association Liability for Damage. . . . . . . . . . . . . . . . 135.9 Maintenance of Unit Alterations.. . . . . . . . . . . . . . . . . . . . . . . . . 145.10 Damage During Unit Alterations. . . . . . . . . . . . . . . . . . . . . . . . . . 145.11 Damage to Others Sustained Inside Owner’s Unit.. . . . . . . . . . . . . . 145.12 Owner Liability for Damage.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 145.13 Owner Repair of Damage; Notice. . . . . . . . . . . . . . . . . . . . . . . . . 14

ARTICLE 6 GENERAL RESTRICTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146.1 Balconies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146.2 Barbecues... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156.3 Flammable Materials... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156.4 Harassment... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156.5 Health Hazards.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166.6 Insurance.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166.7 Jacuzzis and Hot Tubs... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

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6.8 Laundry.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166.9 Limit on Purchase of Units.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166.10 No Drilling... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166.11 Notice of Danger.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166.12 Nudity.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166.13 Nuisance... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166.14 Obstruction of Common Areas... . . . . . . . . . . . . . . . . . . . . . . . . . 176.15 Occupancy Disclosure.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176.16 Occupancy Restriction... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176.17 Pests.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176.18 Power tools... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176.19 Residential Use.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176.20 Roof Restricted Access.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186.21 Sale of Unit... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186.22 Satellite Dishes, Antennas and Electrical Wiring... . . . . . . . . . . . . . 186.23 Signs.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196.24 Smoking.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196.25 Storage Lockers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196.26 Swimming Pools.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196.27 Trash.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196.28 View Protection and Plants.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 206.29 Violation of Law... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206.30 Window Coverings.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

ARTICLE 7 LEASING OF UNIT.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207.1 Restriction on Number of Units Leased. . . . . . . . . . . . . . . . . . . . . 207.2 Lease Requirements.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217.3 Rules.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217.4 Common Area Facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217.5 Assignment of Rents.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217.6 Unlawful Detainer to Enforce Rules.. . . . . . . . . . . . . . . . . . . . . . . 227.7 Grandfathered Tenants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

ARTICLE 8 PETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238.1 Pet Limitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238.2 Weight Limitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238.3 Grandfathered Pets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238.4 Visiting Dogs.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238.5 Nuisance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238.6 Service Animals.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238.7 Dangerous Animals.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238.8 Leash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238.9 Sanitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

ARTICLE 9 VEHICLES AND PARKING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249.1 Management of Parking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249.2 Exchange of Parking Spaces.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 249.3 Restricted Parking.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249.4 Commercial Vehicles... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249.5 Guest Parking.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249.6 Proper Operating Condition.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 249.7 Limited Operation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

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9.8 Electric Vehicles.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249.9 Motorcycles... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249.10 Repair of Vehicles.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249.11 Washing of Vehicles.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259.12 Fluid Leaks.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259.13 Damage and Theft.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259.14 Impeding Access... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259.15 Towing... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

ARTICLE 10 ARCHITECTURAL CONTROL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2510.1 Prior Approval of Improvements.. . . . . . . . . . . . . . . . . . . . . . . . . 2510.2 Decorating Unit.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2510.3 Specific Restrictions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

a. No Washers and Dryers.. . . . . . . . . . . . . . . . . . . . . . . . . . . 26b. No Balcony Enclosures.. . . . . . . . . . . . . . . . . . . . . . . . . . . 26c. No Roof Alterations.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26d. Chandeliers and Ceiling Fans. . . . . . . . . . . . . . . . . . . . . . . 26e. Acoustical Limitations. . . . . . . . . . . . . . . . . . . . . . . . . . . . 26f. Solar Energy Systems.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

10.4 Handicap Access.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2710.5 Submission of Plans... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2810.6 Standards for Approval.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2810.7 Conditions for Approval.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2810.8 Review Fees and Remodeling Agreement.. . . . . . . . . . . . . . . . . . . 2910.9 Board Decision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2910.10 Permits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2910.11 Reconsideration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2910.12 Engineering and Code Requirements. . . . . . . . . . . . . . . . . . . . . . . 3010.13 Diligent Construction.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3010.14 Variances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3010.15 Notice to Neighbors.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3010.16 Variance Not a Waiver... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3110.17 Non-Complying Modifications.. . . . . . . . . . . . . . . . . . . . . . . . . . . 3110.18 Architectural Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3110.19 Mechanics Liens.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3110.20 Waiver of Liability.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3110.21 Conflicts of Interest.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3110.22 Estoppel Certificate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

ARTICLE 11 COMBINING UNITS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3211.1 Approval Requirement... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3211.2 Prohibition Against Combination.. . . . . . . . . . . . . . . . . . . . . . . . . 3211.3 Owner Agreement to Terms.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3211.4 Indemnity.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3211.5 Rescinding Approval.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3311.6 Effect of Combination... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3311.7 No Right to Divide.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

ARTICLE 12 ASSESSMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3312.1 Purpose of Assessments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3312.2 Regular Assessment.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3312.3 Special Assessment... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

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12.4 Owner Vote on Assessments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3512.5 Emergency Situations.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3512.6 Deposit of Assessments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3512.7 Disbursement of Funds.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3512.8 Reserves... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3612.9 Television or Internet Assessment.. . . . . . . . . . . . . . . . . . . . . . . . 36

ARTICLE 13 ENFORCEMENT OF ASSESSMENTS.. . . . . . . . . . . . . . . . . . . . . . . . . 3713.1 Liability for Assessments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3713.2 Enforcement Rights.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3713.3 Foreclosures.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3813.4 Application of Proceeds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3813.5 Waiver of Objection.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3813.6 No Offsets... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3813.7 Subordination of Certain Trust Deeds... . . . . . . . . . . . . . . . . . . . . 3813.8 No Exemption by Waiver of Use... . . . . . . . . . . . . . . . . . . . . . . . . 3813.9 Waiver of Exemptions.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3813.10 Attorneys’ Fees.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

ARTICLE 14 INSURANCE.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3914.1 Association Insurance.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3914.2 Owner Obligation to Carry Insurance.. . . . . . . . . . . . . . . . . . . . . . 4014.3 Owner Waiver of Claims... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4114.4 Management of Claims.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4114.5 Choice of Contractor... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4114.6 Choice of Insurance Company.. . . . . . . . . . . . . . . . . . . . . . . . . . . 42

ARTICLE 15 ENFORCEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4215.1 Owner Enforcement Rights... . . . . . . . . . . . . . . . . . . . . . . . . . . . 4215.2 Association Enforcement Rights.. . . . . . . . . . . . . . . . . . . . . . . . . 42

a. Monetary Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42b. Demand to Cure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42c. Suspend Common Area Privileges.. . . . . . . . . . . . . . . . . . . . 42d. Suspend Voting Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . 42e. Judicial Enforcement. . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

15.3 Nuisance; Remedy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4315.4 Cumulative Remedies.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4315.5 Failure to Enforce Not a Waiver.. . . . . . . . . . . . . . . . . . . . . . . . . 4315.6 Notice and Hearing Procedures.. . . . . . . . . . . . . . . . . . . . . . . . . . 4315.7 Remedy at Law Inadequate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4415.8 Right of Action Against Buyer.. . . . . . . . . . . . . . . . . . . . . . . . . . . 4415.9 Procedure for Internal Dispute Resolution... . . . . . . . . . . . . . . . . . 4415.10 Pre-Litigation Dispute Resolution.. . . . . . . . . . . . . . . . . . . . . . . . 4515.11 Judicial Reference.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4515.12 Attorneys’ Fees.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

ARTICLE 16 RIGHT OF ENTRY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4616.1 Right to Enter.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4616.2 Notice of Entry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4616.3 Avoid Unreasonable Interference. . . . . . . . . . . . . . . . . . . . . . . . . 4716.4 Emergency Entry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4716.5 Refusal to Allow Entry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

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16.6 Damage by Association. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4716.7 Owner Failure to Maintain.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

ARTICLE 17 PROTECTION OF LENDERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4817.1 Definition of Lender, Mortgage, Mortgagee. . . . . . . . . . . . . . . . . . 4817.2 Mortgagees’ Previously Existing Rights.. . . . . . . . . . . . . . . . . . . . . 4817.3 Filing Notices; Notices and Approvals. . . . . . . . . . . . . . . . . . . . . . 4817.4 Written Notification to First Mortgagees. . . . . . . . . . . . . . . . . . . . 4817.5 Exemption from Right of First Refusal. . . . . . . . . . . . . . . . . . . . . . 4817.6 Subordination of Assessment Lien to Mortgages.. . . . . . . . . . . . . . . 4817.7 Leasing of Unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4917.8 Prior Approval of First Mortgagees. . . . . . . . . . . . . . . . . . . . . . . . 4917.9 Examination of Books and Records. . . . . . . . . . . . . . . . . . . . . . . . 5017.10 Taxes, Assessments and Charges.. . . . . . . . . . . . . . . . . . . . . . . . . 5017.11 Reserves for Replacement.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5017.12 No Priority Over Rights of First Mortgagees.. . . . . . . . . . . . . . . . . . 5017.13 Further Notice to Lenders.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5017.14 Conflict.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5117.15 Modifying or Amending.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

ARTICLE 18 LIMITATIONS OF LIABILITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5118.1 Limited Personal Liability.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5118.2 Association Not a Security Provider.. . . . . . . . . . . . . . . . . . . . . . . 5118.3 Duty to Defend.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5118.4 Waiver by Members... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5218.5 Association Not Responsible for Loss.. . . . . . . . . . . . . . . . . . . . . . 5318.6 Personal Injury or Property Damage Sustained Within a Unit.. . . . . . 53

ARTICLE 19 DAMAGE/DESTRUCTION TO IMPROVEMENTS. . . . . . . . . . . . . . . . . . 5319.1 Common Area Damage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5319.2 Decision Not to Rebuild. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5419.3 Elimination of Units. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5519.4 Duties of Board During Reconstruction.. . . . . . . . . . . . . . . . . . . . . 5519.5 Labor and Materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5519.6 Special Assessment for Reconstruction.. . . . . . . . . . . . . . . . . . . . . 5519.7 Change of Condominium Plan.. . . . . . . . . . . . . . . . . . . . . . . . . . . 55

ARTICLE 20 CONDEMNATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5520.1 Notice.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5520.2 Common Action.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5520.3 Condemnation Awards... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5620.4 Substantial Taking.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5620.5 Revision of Documents.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5620.6 Status of Membership.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5620.7 Change of Condominium Plan.. . . . . . . . . . . . . . . . . . . . . . . . . . . 56

ARTICLE 21 MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5721.1 Notice of Airport in Vicinity. .. . . . . . . . . . . . . . . . . . . . . . . . . . . 5721.2 Amendment.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5721.3 Term of CC&Rs.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5721.4 Conflict.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5721.5 No Right of Partition... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

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21.6 Homestead Waiver.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5821.7 Restrictive Agreements.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5821.8 Attorneys’ Fees.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5821.9 Notices... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5821.10 Headings... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5821.11 Liberal Construction.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5821.12 Number and Gender.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5821.13 Severability... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5821.14 No Public Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5921.15 Successor Association.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

EXHIBIT A Allocation Schedule for Assessments. . . . . . . . . . . . . Exhibit A - Page 1

EXHIBIT B Maintenance and Repairs. . . . . . . . . . . . . . . . . . . . Exhibit B - Page 1

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RESTATED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS

ESTABLISHING A PLAN OF CONDOMINIUM OWNERSHIPof

WESTCHESTER WOODS HOMEOWNERS ASSOCIATIONa California nonprofit mutual-benefit corporation

THIS RESTATED DECLARATION of Covenants, Conditions and RestrictionsEstablishing a Plan of Condominium Ownership (“CC&Rs”) is made by all Persons whoown Units in that certain real property planned residential development located at8650 and 8710 Belford Avenue, Los Angeles, California and described as follows:

Lot 2 of Tract No. 31907, in the City of LosAngeles, County of Los Angeles, State ofCalifornia, as per Map recorded in Book 1042,Pages 46 and 47 of Maps in the Office of theCounty Recorder of Los Angeles.

With these CC&Rs, in accordance with California Civil Code Section 1355(a), themembers of Westchester Woods Homeowners Association (“Association”) herebyrevoke the Declaration of Covenants, Conditions and Restrictions Establishing a Planof Condominium Ownership which was recorded on July 20, 1992 as Instrument No.92-1316026 against the above property, and any amendments thereto, and substitutein their place these CC&Rs, which shall bind the above property and:

1. Benefit Members. Be for the benefit of members of the Association.

2. Benefit the Property. Be for the benefit, enhancement and protection of thedesirability, value and attractiveness of the Project and each Unit therein;

3. Bind Successors in Interest. Inure to the benefit of and be binding upon eachsuccessor in interest of the Association, each Owner, Tenant, Resident, andoccupant of any portion of the Project as well as their respective heirs,personal representatives, grantees, Tenants, licensees, successors and assigns;and

4. Run With the Land. Run with the land and be binding upon all parties havingor acquiring any right, title or interest in the Project or any portion of theProject whether as sole owners, joint owners, Tenants, Residents, occupantsor otherwise.

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

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ARTICLE 1DEFINITIONS

1.1 “Assessment” shall mean a Regular Assessment or Special Assessmentlevied against an Owner’s 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 andaccessible 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 theImprovements 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, Conditionsand Restrictions including any amendments.

1.8 “Committee” shall mean any committee appointed by the Board toassist in the management and administration of the affairs of the Association.

1.9 “Common Area” shall mean the entire Project except the interestsowned separately by individual Owners.

1.10 “Common Expenses” shall mean the costs, expenses and charges inconnection with maintaining, managing, insuring, operating, repairing and replacingthe Common Areas as the same may be estimated from time to time by the Boardincluding, but not limited to, any amounts reasonably necessary for reserves foranticipated long-term maintenance, repair and replacement of capital Improvementsupon 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 783and 1351(f) of the California Civil Code, and shall be an estate in real propertyconsisting of (i) a separate fee estate in the air space and interior surfaces within aUnit as described in the Condominium Plan; (ii) an undivided interest in the CommonArea; (iii) any exclusive or nonexclusive easements conveyed in the CC&Rs, theCondominium Plan, or the deed to the Condominium; and (iv) membership in theAssociation.

1.12 “Condominium Plan” shall mean the recorded plan for the subdivisionof the Project into condominiums, which was recorded on July 20, 1992 as InstrumentNo. 92-1316025.

1.13 “Director” shall mean any member of the Association’s Board ofDirectors.

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1.14 “Exclusive Use Common Area” shall mean any portion of the CommonArea which serves a single Unit, whether located inside or outside the boundaries ofthe Unit.

1.15 “Governing Documents” shall mean these CC&Rs, the Articles ofIncorporation, Bylaws, Rules, Condominium Plan, any amendments to thesedocuments, and such other written documents, reports, maps, schedules and exhibitsas 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 physicalcomponents 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 aUnit 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 undera contract to purchase the property, but excluding any Person having an interest inthe 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 allImprovements.

1.21 “Regular Assessments” shall mean assessments levied against Owners todefray expenses incurred by the Association each fiscal year to carry out its dutiesunder the Governing Documents.

1.22 “Resident” shall mean an Owner, resident, guest, invitee, Tenant, orother 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 forthe general health, welfare, comfort, and safety of Owners and to interpret andimplement these CC&Rs.

1.24 “Special Assessments” shall mean assessments levied from time to timeagainst 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 beengiven by an Owner. “Tenant” shall not include individuals co-residing in the Unit withthe Owner.

1.26 “Unit” shall mean those elements of a Condominium which are notowned in common with other Owners. The Project contains 106 Units.

a. Boundaries. The lateral boundaries of each Unit are the interiorsurfaces of its perimeter walls, windows, window frames, doors and door

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frames at the limits of the horizontal dimensions shown on theCondominium Plan. The lower vertical boundaries of each Unit are theinterior surfaces of its floors and the upper vertical boundaries of eachUnit are the interior surfaces of its ceilings. Each Unit includes thesurfaces so described; the surfaces of any bearing walls, columns andbeams lying within its boundaries; the respective portions of theBuilding and improvements lying within its boundaries (except as statedin Subsection B, below); and the airspace encompassed by itsboundaries.

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 utilityinstallations, wherever located, except the outlets thereof when locatedwithin the Unit, and except any surface noted herein which may form apart of an element of a Unit.

c. Interpretation. In interpreting deeds and plans, the existing physicalboundaries of a Unit, or of a Unit reconstructed in substantialaccordance with the Condominium Plan, shall be conclusively presumedto be its boundaries, rather than the metes and bounds, or otherdescription, expressed in the deed or Condominium Plan, regardless ofsettling or lateral movement of a Building and regardless of minorvariance between boundaries shown on the Condominium Plan or in thedeed and those of a Building.

1.27 “Vehicle” shall mean automobiles, trucks, recreational vehicles,campers, trailers, motorcycles, boats or any similar type of mechanical device usedfor transportation.

1.28 Definitions of Other Terms: unless the context clearly requiresotherwise, all other terms used herein are intended to be defined as set forth inSection 1350, et seq. of the Civil Code of the State of California.

ARTICLE 2THE ASSOCIATION

2.1 Management of the Association. The management and control of theAssociation and the Project shall be the responsibility of the Board of Directors.

2.2 Powers of a Nonprofit Corporation. The Association shall have all ofthe powers of a nonprofit corporation organized under the laws of the State ofCalifornia operating for the benefit of its Owners.

2.3 Specific Powers of the Association

a. Enforcement of Governing Documents. The Association, through itsBoard, shall have authority to enforce the provisions of the GoverningDocuments, provide for the general health, welfare, comfort and safetyof the residents, and interpret the Association’s Governing Documents.

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b. Enactment of Rules. The Board may adopt, amend, or repeal Rules forthe use, occupancy and maintenance of the Project; for the generalhealth, welfare, comfort, and safety of Owners; and to interpret andimplement these CC&Rs, using the following procedure or any otherprocedure required or provided as an alternative by statute.

(1) Applicability. This Subsection (1) shall apply, to the extentrequired by law, to Rules that relate to (i) use of the CommonArea, Exclusive Use Common Areas, or Units; (ii) architecturalmodifications by the Owners, including procedures forarchitectural approval; (iii) Owner discipline, including fineschedules and procedures for imposing discipline; (iv) standardsfor payment plans for Owners’ delinquent assessments; (v)dispute resolution procedures; and (vi) election procedures.

(a) Distribution to Members. The proposed Rules shall bedistributed to the Owners at least 30 days before an openBoard meeting at which the Board will vote on adoptingthe policy. The distribution shall include a notice of themeeting and a description of the purpose and effect of theproposed Rules. Provided, notice is not required if theBoard determines that an immediate rule change isnecessary to address an imminent threat to public healthor safety, or imminent risk of substantial economic loss tothe Association.

(b) Vote on Rules. At the scheduled Board meeting, the Boardshall vote on adoption, amendment or repeal of the Rulesafter considering any comments received by the Owners onthis issue.

(c) Approved Rules. Within 15 days of approving the Rules, theAssociation shall distribute notice of the Rules change tothe Owners.

(d) Owner Vote to Reverse Rule Change. A Rule whoseadoption is subject to this Subsection (1) may beoverturned by the affirmative vote of at least a majority ofthe Owners on written request signed by the Owners of atleast 5% of the Units delivered to the Association not morethan 30 days after notice of the Rule change is delivered tothe Owners. A Rule which is reversed according to thisSection may not be re-adopted for one year after the dateof the Owner vote reversing the rule change. However,the Board may at any time adopt a different Rule on thesame subject as the Rule change that had been reversed.

(2) Exclusions. Subsection (1), above, does not apply to (i) CommonArea maintenance; (ii) decisions on a specific situation that arenot intended to apply generally; (iii) assessment rates; (iv) Ruleschanges or the issuance of other documents that are required bylaw or that repeat existing law or the Governing Documents, if

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the Board has no discretion as to the substantive effect of thechange; or (v) the adoption of any Rules where the proceduresoutlined in Subsection (1) are not required by law, includingwithout limitation Civil Code Sections 1357.100 et seq., and anyamendments or successor statutes thereto.

c. Incur and Pay Expenses. The Association shall provide for, incur, andpay for the operational expenses of the Association including, but notlimited 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, reconstructionand replacement of all or any portion of the Common Areas or thepersonal property acquired by the Association; supplies and materials;and such other services for the use, enjoyment and protection of theProject and its residents as the Board may determine from time to timeare reasonable, proper or desirable.

d. Charge Fees. The Board shall have the authority to charge reasonabledeposits and fees for (i) use of any Common Area facilities, includingparking spaces; (ii) move-in and move-out by an Owner or Tenant; (iii)Unit remodeling; (iv) Building water shut-downs; and (v) such otherpurposes as the Board may deem appropriate.

(1) The Board shall not charge Owners more than it charges thegeneral public for the use of any particular facilities.

(2) The Association shall not use assessment income for themaintenance, repair or operation of any recreational facilitywhich is subject to an admission or other fee for its use, until allincome collected from such admissions and fees has been appliedtowards such maintenance, repair or operation.

e. Pay Taxes and Assessments. The Board shall have the authority to paytaxes and assessments levied against the Association or the property ofthe Association.

f. Borrow Money. The Association shall have the authority to borrow andrepay monies as may be needed in connection with the discharge of theAssociation’s duties, and to pledge or assign assessment rights and otherAssociation property as security for the repayment of such borrowedmoney provided, however, that any loan in excess of five percent of thebudgeted Regular Assessments shall require approval by a majority of aquorum of the Owners whose voting rights have not been suspended. The Board shall have the authority to enter into such loans at equal orbetter terms, duration and conditions as available from primary moneycenter institutions, including government, financial institutions orprivate parties.

g. Represent Association in Litigation. The Board shall have theauthority to institute, defend, settle or intervene on behalf of theAssociation in litigation, arbitration, mediation or administrative

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proceedings in any capacity necessary to represent the interests of theAssociation.

h. Property of Association. The Association may acquire and holdtangible and intangible personal property and may dispose of the sameby sale or otherwise.

i. Foreclose and Hold Title. The Association, through its Board, shallhave the authority to lien and foreclose upon any Unit for non-paymentof Assessments, and to take title to the Unit.

j. Delegation to Manager. The Board may delegate any of its duties,powers or functions to any qualified person or management company toact as manager; provided, however, that the manager shall act at thedirection and under the supervision of the Board.

k. Approval Revocable. Any consent, approval or authorization given toan Owner as permitted in these CC&Rs by its Board, or any person oragent authorized by the Board, shall be revocable at any time.

2.4 Limitation on Professional Management Contract. Any agreement forprofessional management of the Project shall provide that the term of any suchcontract shall not exceed one year, without approval of a majority of a Quorum ofthe Owners.

2.5 Limitations on Sale of Property. In no event may the Board sell duringany fiscal year property owned by the Association having an aggregate market valuein excess of five percent of the Association’s budgeted gross expenses for that yearwithout the consent of a majority of a quorum of the Owners whose voting rightshave not been suspended.

2.6 Limitations on Capital Improvements. The Board may not make capitalImprovements to the Common Areas in any one fiscal year in excess of five percent ofthe Association’s budgeted gross expenses for that year without the consent of amajority of a Quorum of the Owners whose voting rights have not been suspended.

2.7 Vendor Contract Limitations. No contract for services shall be enteredinto which binds the Association for a period in excess of one year without the vote orwritten consent of a majority of a Quorum of the Owners whose voting rights have notbeen suspended. The following exceptions may exceed one year without a vote ofthe membership:

a. Public Utility Contract A contract with a public utility company if therates charged for the materials or services are regulated by the PublicUtilities Commission provided, however, that the term of the contractshall not exceed the shortest term for which the supplier will contractat the regulated rate.

b. Fire and Burglary. Contracts for terms up to three years to lease orservice burglar and/or fire alarm equipment or provide protectiveservices.

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c. Bulk Cable Service. Contracts for terms up to five years to providecable, internet, telecommunications, or satellite communicationsservice.

d. Laundry Machines. Contracts for laundry machines for terms of up toten years.

e. Terminable Within One Year. Contracts for more than one year thatare terminable by the Association at any time after no longer than one year without cause, penalty or other obligation upon no longer than 90days written notice of termination to the other party.

2.8 Nonprofit Character of Association. Notwithstanding anythingcontained in these CC&Rs to the contrary, the Association shall not engage in anyactivity, or cause the same to be done, which may jeopardize the nonprofit characterof the Association.

ARTICLE 3MEMBERSHIP

3.1 Membership. Each Person shall automatically become a member of theAssociation upon obtaining an ownership interest in a Unit and shall remain a memberuntil he or she ceases to have an ownership interest in a Unit.

a. Membership Appurtenant to Units. Membership in the Association isfor the benefit of and appurtenant to the Unit to which it relates andmay not be separated from the ownership of the Unit.

b. No Membership for Security Interests. Membership does not includepersons or entities who hold an interest in a Unit merely as security forthe performance of an obligation.

c. No Membership for Tenants. Membership privileges shall be extendedto Tenants as provided for in these CC&Rs but Tenants shall not bemembers nor shall they have the right to vote.

d. No Separate Transfer of Membership. No Owner may transfer, pledgeor alienate in any way his or her membership in the Association, exceptupon the transfer of the fee interest in the Unit to which it isappurtenant and then only to the transferee of such fee interest.

3.2 Proof of Membership. No one may exercise the rights of membershipunless he or she owns a Unit in the Association. The Board may require a Person toprovide proof of ownership before exercising membership rights, which proof shall bein the form of a recorded deed or, for purchases in the preceding 30 days, acompleted escrow closing statement.

3.3 Trusts. If title to a Unit is held in the name of a trust, the trustee(s) ofthe trust shall be considered to be the Owner of the Unit for purposes of membershipin 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 entitledto one vote per Unit regardless of the number of Owners having an interest in theUnit. The right to vote may not be severed or separated from the Unit to which it isappurtenant. Any sale, transfer or conveyance of ownership shall operate to transferthe appurtenant vote.

3.5 Inspection of Records. Owners shall have the right to inspect records ofthe Association as provided for in the Bylaws.

3.6 Obligation to Follow Governing Documents. Owners shall be obligatedto follow the Association’s 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/orusing the Association’s Common Areas.

3.8 Provide for Security. Owners shall be responsible for their own securityand shall take appropriate measures to ensure the security of the persons andproperty of themselves as well as that of their family, Tenants and guests. Ownersmay not rely on any security measures provided by the Association.

3.9 Purchase Subject to Violations. Buyers shall take ownership of Unitssubject to any architectural violations of the CC&Rs or Rules which may existconcerning the Unit, whether or not such violations were disclosed prior to transfer oftitle and whether or not the Association knew of the violations at the time of transferof title. Such buyers shall be liable for correcting such violations upon demand by theAssociation. Assessments, fines, and other charges not secured by a lien on the Unitprior to transfer of title are exempted from this provision.

3.10 Obligation to Provide Access. Owners shall provide the Association witha means to access their Unit in an emergency or to perform necessary repairs, forexample by providing the Association either a copy of their key, or the name andphone number of a person who can provide access to the Unit if the Owner is notavailable. In the event an Owner fails to provide access to his or her Unit, theAssociation 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 theevent of an emergency the Association is unable to gain access to the Unit, the Ownershall pay the cost of all damage and shall have no right of action against theAssociation or its representatives for trespass or for any damage resulting from aforced entry into the Unit. In addition, unless they acted with gross negligence orintentional disregard, neither the Association nor its officers, Directors, or agentsshall be responsible to any party for any damages resulting from the Association’sfailure to enter a unit where the Owner did not provide the Association with a meansof access.

3.11 Delivery of Documents to Prospective Buyers. It shall be theresponsibility of Owners and not the Association to provide to purchasers of theirUnits, before the close of escrow, documents as required by Section 1368 of the CivilCode. Such documents generally include the Articles, CC&Rs, Bylaws, Rules, thecurrent operating budget, a summary of the Association’s reserves, the Association’s

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assessment enforcement procedures, the most recent annual financial statement, asummary of the Association’s insurance, and such other financial documents as maybe provided for in Section 1365 of the Civil Code. Owners may purchase copies ofsuch records from the Association. In addition, Owners shall give to prospectivebuyers notice of any existing violations or non-compliance matters involving theirUnits.

3.12 Notice of Transfer of Ownership or Occupancy. On or before theassignment, sale, quitclaim or other transfer of their Units, and on or before anychange in occupancy of their Unit (excluding Owners’ roommates), Owners shallnotify the Association in writing of the name and address of the transferee, or newoccupant, expected date of transfer, nature of the transfer, and relationship of newoccupant to Owner.

3.13 Notice of Mortgage. If required by the Association, Owners must notifythe Association of (i) the name and address of any mortgagee holding a mortgage ontheir Unit and (ii) the release or discharge of any such mortgage.

ARTICLE 4PROPERTY RIGHTS AND EASEMENTS

4.1 Ownership of Common Areas. The Common Areas shall be owned bythe Owners as tenants-in-common according to their percentage interest, which shallbe a 1/106th undivided interest per Unit.

4.2 Ingress, Egress and Support. Owners shall enjoy a nonexclusiveeasement appurtenant to and for the benefit of their Units for ingress, egress andsupport over, across and through the Common Area and every portion of any Unitrequired for the structural support of the Unit, subject to the Governing Documentsand applicable law, including without limitation the Association’s ability to:

a. Reasonably limit the number of guests or other persons using theCommon Area;

b. Cause the construction, alteration or removal of Improvements on theCommon Area; and

c. 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 ofuse and enjoyment of the Common Areas subject to the rights of the Association asdescribed in these CC&Rs, and subject to the Association’s right to reasonably limitthe number of guests of Owners.

4.4 Easement for Encroachment. Each Unit and the Common Area has aneasement over all adjoining Units and Common Area to accommodate anyencroachment for any fence or wall due to engineering errors, errors in originalconstruction, settlement or shifting, reconstruction, remodeling, repairs, or any othersimilar cause. There shall be easements for the maintenance of said encroachmentsso long as they shall exist, and the rights and obligations of Owners shall not bealtered 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 anOwner or Owners if the encroachment occurred due to or the willful act or acts of anOwner or Owners.

4.5 Utility Rights and Duties. Owners shall have the duty to maintain andrepair and are hereby granted an easement to enter the Common Areas as may benecessary to maintain and repair sewer lines, storm drains, water, gas, utility lines,etc. which exclusively service their individual Units provided that any damage to theCommon Areas shall be repaired at such Owner’s sole expense and in a timelyfashion. The Association is granted an easement to enter Units as is necessary tomaintain and repair Common Area utility lines provided that any damage to anOwner’s Unit shall be repaired at the Association’s sole expense and in a timelyfashion.

4.6 Prohibition Against Severance. Owners shall not have the right to severtheir Units from their membership rights or from their percentage interest in theCommon Area. Membership rights, interest in the Common Area and fee title to therespective Units shall conclusively be deemed to be conveyed, transferred orencumbered with its respective Unit even though the description in the instrument ofconveyance or encumbrance may refer only to the Unit.

4.7 No Power to Encumber Real Property. The real property assets of theAssociation may not be encumbered as a security for debt.

4.8 Association Easement. The Association shall have a nonexclusiveeasement in, to, and throughout the Common Area and its Improvements to performits 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 offencumbrances, and to acquire, hold title to, lease and convey, with or withoutconsideration, real and personal property and interests, including but not limited toeasements. However, the approval of at least 67% of the Owners is required beforethe Board may grant exclusive use of any portion of the Common Area to anyMember, except as allowed by statute and except for the following reasons:

a. To eliminate or correct engineering errors in documents recorded withthe County Recorder or on file with a public agency or utility company.

b. To eliminate or correct encroachments due to errors in construction ofany Improvements.

c. To fulfill the requirement of a public agency.

d. To transfer the burden of management and maintenance of any CommonArea that is generally inaccessible and is not of general use to themembership at large of the Association.

Any such Owners vote shall specify whether the Association will receive any monetaryconsideration for the grant and whether the Association or the transferee will beresponsible for providing any insurance coverage for exclusive use of the CommonArea. 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 andavailability of ballots set forth in the Bylaws.

ARTICLE 5MAINTENANCE AND REPAIR

5.1 Maintenance Standards. For purposes of this Article and Exhibit B tothese CC&Rs, maintenance shall include, without limitation, cleaning; keeping aclean, safe and sanitary condition as advisable to preserve the attractive appearanceof each Condominium and the Project and to protect their values; and ensuring thatthe area or item does not pose a threat to the health, safety or welfare of otherOwners. The Board shall have the power to determine the maintenance standards.

5.2 Association Responsibility for Common Areas. Except as otherwiseprovided in these CC&Rs, the Association, through its Board, shall maintain, repairand replace the Common Areas in first-class condition and in accordance with allrequirements of the City and other applicable codes or governmental requirements.

5.3 Owners’ Responsibility for Units. Except as otherwise provided inthese CC&Rs, the Owners shall maintain their Units in a sanitary condition and in goodrepair, in accordance with all requirements of the City and other applicable codes orgovernmental requirements.

5.4 Association’s and Owners’ Maintenance and Repair Responsibility. Each party’s responsibility for painting, maintenance and repairs to specific elementsof the Project is as stated in Exhibit B attached hereto.

5.5 Termites and Pests.

a. Owners. Owners are responsible for the maintenance and repair oftheir personal property and their Unit as required to control thepresence of or damage caused by insects, rodents, or wood-destroyingpests or organisms.

b. Association. The Board has the authority and the duty to treat and/orrepair Common Areas infested or damaged by insects, rodents,wood-destroying pests or organisms, etc. and to special assess themembership for the cost of the treatment and/or repairs. Neither theAssociation, the Board, or its officers, agents or employees shall beliable, absent gross negligence or intentional acts, to any Owner, familymember, guest, invitee or lessee for any damage caused by thetreatment.

c. Termite Clearance Certificate. If an Owner wishes to obtain a termiteclearance certificate for any purpose, the Owner shall be solelyresponsible for any and all costs associated with obtaining thecertificate, including without limitation the costs of maintenance andrepair of the Unit, Exclusive Use Common Area, or Common Area whichmay be necessary to obtain the termite clearance certificate.

5.6 Power to Vacate Unit. If necessary, the Board has the authority tovacate a Unit to make repairs to the Association’s 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 theAssociation. The Association shall have the duty to diligently make repairs so as toreturn occupancy as quickly as possible.

a. Notice. The Association shall give notice of the need to temporarilyvacate a Unit to the Residents and Owners not less than 15 days normore than 30 days prior to the date of the temporary relocation. Thenotice shall state the reason for the temporary relocation, the date andtime of the beginning of treatment or repairs, the anticipated date andtime of termination of treatment or repairs, and that the Residents willbe responsible for their own accommodations during the temporaryrelocation.

b. Manner of Notice. Notice shall be sent to all Residents by eitherfirst-class mail or personal delivery, and to all Owners living off-site atthe address shown on the books of the Association.

c. Duty to Vacate. Owners shall ensure that Residents vacate their Units. In the event any Owner fails to cause the Residents to vacate, theAssociation shall have the right to levy Special Assessments against theOwner for all expenses and reasonable attorneys’ fees incurred by theAssociation removing such Residents from the Unit as well as anyadditional costs caused by the delay.

5.7 Association Repairs of Damage.

a. Where Association is Responsible for Damage. If the Association isresponsible for repairs to damage to a Building or other Common Area,the Association shall make the repairs.

b. Damage During Association Repairs. The Association shall repairdamage caused by Common Area repairs made by the Association. Inthis situation, the Association shall return the Unit, at its option, toeither (i) its condition as originally constructed or (ii) its conditionimmediately prior to the damage and the Unit owner shall make anyadditional repairs or upgrades at his or her expense.

c. Balcony Damage. The Association may cause any damage to Balconiesor a Building’s exterior surfaces to be repaired and any related expensesfor which the Unit Owner is responsible shall be assessed against theOwner.

5.8 Limitation of Association Liability for Damage. Neither the Associationnor its Officers, Directors, Committee members, employees or agents shall beresponsible to any Owner or Owner’s family, Tenants or guests for any loss or damageto person or property suffered by reason of water, mold, fungus, fire, smoke,explosion, electricity, dust, sand, insect or rodent infestation, etc. or any othersource unless the damage or loss was caused by the gross negligence or willfulmisconduct of the Association’s Officers, Directors, Committee members, employees,or agents.

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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 itssurrounding 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 theUnit.

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 ofremodeling, maintaining, repairing, or replacing Improvements, unless otherwiseprovided in these CC&Rs.

5.11 Damage to Others Sustained Inside Owner’s Unit. In the event ofpersonal injury or property damage sustained by any person while physically within anOwner’s Unit, that Owner shall, at his cost, fully indemnify, hold harmless and defendagainst any claim for that injury, the Association and the other Owners (excludingother Owners whose own negligence or intentional act caused or contributed to theinjury or damage).

5.12 Owner Liability for Damage. Individual Owners, and not theAssociation, shall be responsible for all damage or loss to the Improvements orpersonal property to the extent the loss or damage (i) originated from within anOwner’s Unit or Balcony, including without limitation water intrusion, fire, insect orrodent infestation, or (ii) was caused by the acts, omissions or willful misconduct ofsuch 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 allexpenses incurred in mitigating or repairing damages to the CommonAreas, Exclusive Use Common Areas, Association property, and otherUnits. The Association may cause the damaged property to be repairedor replaced and the cost shall be charged as a Special Assessmentagainst the Owner; and

b. To Others. For any damage to the Owner’s own property and the Unitsand property of others.

c. Insurance. The Owner shall make claims against their own insurancecompany and not against the Association’s insurance.

5.13 Owner Repair of Damage; Notice. Except as otherwise provided inthese CC&Rs, the Owner shall make all repairs and perform all mitigation for anydamage or loss for which the Owner is responsible. Owners shall notify theAssociation of the nature and extent of any repairs or improvements made or causedto be made to their Unit costing more than$2,000.00.

ARTICLE 6GENERAL RESTRICTIONS

6.1 Balconies.

a. Ledge. No plants or hanging vines shall be permitted to extend overthe edge of any Balcony except as provided for in the Rules. Nor shall

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any item be placed temporarily or permanently on any ledge except asprovided for in the Rules. Laundry, rugs or other items may not bedraped over any Balcony wall.

b. Dangerous Acts. No Owner shall throw or permit to be swept or thrownfrom his or her Unit, or its doors, windows, or Balconies any dirt, water,objects, or other substance of any kind whatsoever.

c. Unsightly Objects. Owners shall have the right to furnish theirBalconies with outdoor furniture. However, unsightly objects (includingbut not limited to dead plants, laundry, mops, appliances and bicycles)may not be placed or stored on a Balcony where they may be seen byother Owners or by the public in general. Owners shall maintain in goodcondition and repair and adequately painted or otherwise finished allfurnishings or other items located on the Owner’s Balcony.

d. View Obstructions. No vegetation or other obstruction shall be plantedor maintained upon any Balcony which shall unreasonably obstruct theview from any other Unit. In the event of a dispute between Ownersregarding the obstruction of a view from a Unit, such dispute shall besubmitted to the Board, whose decision in such matters shall be binding. However, if the obstruction allegedly affects only one Unit, the Boardmay, at its option, defer resolution of the issue to the affected Owners. Any item or vegetation which, in the opinion of the Board, creates anunreasonable view obstruction shall be removed or pruned to theBoard’s satisfaction.

e. Watering Plants. No Owner shall water his or her plants or use wateron his or her Balcony in such a way as to cause water to drip, spray, orflow onto the Balcony or the windows of another Unit.

f. Balcony Weight Limitations. No Owner shall allow the placement ofunreasonable weight loads on his or her Balcony. The number and sizeof plants shall be regulated by the Rules. No refrigerators, freezers orother appliance shall be permitted on Balconies.

6.2 Barbecues. Barbecues are prohibited except for propane barbecueswith a switch to turn off the flame in receptacles designed for such purposes. Thehours of operation, type of equipment and rules regarding their operation shall be inthe Rules. Residents shall take reasonable precautions to minimize smoke fromentering other Units.

6.3 Flammable Materials. Under no circumstances may explosives,fireworks, or highly flammable or highly corrosive materials be stored by Owners inparking spaces, Common Areas, Exclusive Use Common Areas, or Units, except forflammable or corrosive materials used for household purposes in appropriatequantities.

6.4 Harassment. Owners shall not engage in any abusive or harassingbehavior, either verbal or physical, or any form of intimidation or aggression directedat other Owners, Residents, guests, occupants, invitees, management, or vendors, ortheir 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 whichconstitute a health, safety or fire hazard.

6.6 Insurance. No Owner shall permit anything to be done or kept in or onany Unit or any Common Area which will increase the rate of insurance in or on anyother Unit or the Common Area, or which would result in uninsurability or in thecancellation, suspension, modification or reduction of insurance in, on or coveringany other Unit, Common Area or item of personal property within the Project. If, byreason of the occupancy or use of any portion of the Project by any Owner, the rateof insurance on any policy held by the Association shall be increased, such Ownershall become personally liable to the Association for any increase in insurancepremiums caused thereby and the cost of the increase shall be assessed to suchOwner and his or her Condominium as a Special Assessment.

6.7 Jacuzzis and Hot Tubs. No jacuzzi or hot tub may be installed in anyUnit without the written approval of the Board, except for spa tubs in bathrooms thatfit within the footprint of the originally installed tub. All such installations shall meetthe 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 ownershipinterest in more than two Units. Provided, any Owner who has an ownership interestin more than two Units on the date these CC&Rs are recorded shall be grandfatheredin. Such Owner shall automatically be granted approval under this Section tocontinue to hold title to all such Units. In all other respects, obtaining title toadditional 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 anykind, derricks, or other structures designed for use in boring for water, oil or naturalgas.

6.11 Notice of Danger. If an Owner observes any condition, conduct oractivity within any portion of the Project which the Owner believes is likely to causeor to result in serious injury to the health or safety of any resident or occupant withinthe Project unless immediate corrective action is taken, the Owner shall immediatelynotify the Association’s Board or manager so that the appropriate action can betaken.

6.12 Nudity. Public displays of nudity are prohibited.

6.13 Nuisance.

a. Prohibited. No one may cause or permit to be caused anythingwhich constitutes a nuisance.

(1) To constitute a nuisance the activity must be unreasonablynoxious or offensive, cause an unreasonable disturbance orannoyance, be unreasonably injurious to health, indecent,

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or create an unreasonable obstruction to the free use ofproperty. Residents with allergies or sensitivities must, attheir own expense, take precautions to protect themselvesagainst commonplace levels of noise, odors, dust, smoke,gases, pollen, or other environmental pollutants.

(2) Because a nuisance is largely subjective, the Association isnot obligated to become involved in disputes where thealleged nuisance causes mere inconvenience rather thansubstantial interference. If, in the Board’s opinion, anuisance exists, the Board may take legal action or seekany other remedy provided for by law and/or these CC&Rs.

b. Liability for Nuisance. If a condition exists in an Owner’s unit oran Owner does anything with respect to his Unit or use his Unit ina way that unreasonably increases the level of noise or soundstransmitted to another Unit, or which causes a continualunreasonable disturbance or annoyance to any other Unit Owner,he shall be required to take at his own expense all reasonablemeasures to deaden, insulate and otherwise decrease the level ofsuch noise or sounds to the minimum level reasonably possible soas not to cause an interference with the use and enjoyment byother Unit Owners of their Units.

6.14 Obstruction of Common Areas. No Common Area shall be obstructed orused for other than its intended purpose except as designated by the Board.

6.15 Occupancy Disclosure. Owners shall promptly provide the Associationwith the names of all Unit Residents on any change in occupancy.

6.16 Occupancy Restriction. The maximum number of persons who maypermanently reside in any Unit is one person plus two additional persons perbedroom. “Permanently reside” shall mean the use, residency or occupancy of anyUnit by any person for more than 30 consecutive days or more than 60 aggregatedays, whether or not consecutive, in any one calendar year.

6.17 Pests. No Owner shall permit any thing or condition to exist upon anyportion of the Project which shall induce, breed or harbor infectious plant diseases ornoxious insects or vermin.

6.18 Power tools. No power tools, welding equipment, or carpentry shopsshall be maintained or used within the Project without the Association’s prior writtenconsent, except for ordinary hand-held power tools used in a way that does notcreate a nuisance.

6.19 Residential Use. No Owner shall use or permit his or her Unit or anyportion 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 businessactivities as long as all of the following criteria are met:

a. Primarily Residential. The Unit continues to be used primarily forresidential purposes.

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b. Advertisement Limitations. The business activity does not involve anyadvertisement or other listing available to the public or any publicsector which includes the address of the Unit or the Project or thephone number of the Association’s business office.

c. No Employees, Vendors, Etc. The business activity does not involveany employees, clients, customers, vendors, contractors,subcontractors, business associates, or other visitors entering the Unit orthe Common Areas.

d. No Excessive Deliveries. The business activity does not involvedeliveries or pick-ups of mail or packages which in the Board’sdetermination are in excess of a level normal for residential occupancy.

e. No Manufacturing or Storage. No manufacturing of any kind and nostorage of inventory or other items related to the business takes place inthe Unit or the Common Areas.

f. Insurance. The Owner obtains and maintains appropriate and adequateinsurance coverage, naming the Association as an additional insured,including but not limited to comprehensive general liability insurance, inorder to insure against any type of injury, such as property damage orpersonal injury occurring within the Owner’s Unit or Common Area, andagainst any cause of action whatsoever arising or relating to theoperation of a business from the Unit.

g. Compliance with Laws. The business activity is not illegal, does notviolate any local ordinances, and complies with all applicable businesslicense requirements.

This Section shall not be construed to prohibit the operation of family day carehomes on site, to the extent authorized and properly permitted by all applicable localgovernmental agencies, and to the extent California statute prohibits these CC&Rsfrom 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 Association’s roofswithout the prior written consent of the Board.

6.21 Sale of Unit. Open houses, brokers’ caravans and other matters relatingto the sale of a Unit shall be provided for in the Rules.

6.22 Satellite Dishes, Antennas and Electrical Wiring.

a. Common Area Installations. No antennas or satellite dishes fortransmitting or receiving radio signals or any other form ofelectromagnetic radiation may be installed on any portion of theCommon Areas or attached to a Building unless authorized by the Board.

b. Installations on Balconies. No satellite dish more than one meter(approximately 39 inches) in diameter shall be installed anywhere in the

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Project. Installations on Balconies which otherwise conform to thisSection shall be as regulated by the Board.

c. Size. Owners shall install the smallest dish possible to receive signal forthe service provider they have chosen.

d. Indemnification. The owner of any Unit receiving a signal frominstallation of any antenna or satellite dish shall indemnify, defend andhold harmless the Association and its Officers, Directors, Committeemembers, employees and agents from all demands, costs, includingreasonable legal fees and expenses, claims, damages and causes ofaction arising out of such installation.

e. Maintenance. Owners shall be responsible for all maintenance andrepairs to Common Areas or other Units associated with antennas andsatellite dishes connected to their Unit. Any antennas or satellite disheswhich become a safety hazard shall be removed at the Owner’s expense.

f. Removal. Owners must, at their sole cost and expense, remove allantennas and satellite dishes no longer providing service to the Unit. This requirement applies to antennas and dishes installed by priorowners of the Unit.

6.23 Signs. No sign, poster, flag, banner, notice, nameplate, card oradvertisement of any kind may be displayed to the public view on or from any Unit orin or on any Common Area except as allowed by law or permitted in the Association’sRules. Owners may display one sign in a Unit window which is of reasonabledimensions and design, advertising that the property is for sale or lease, as allowedby 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 inthe Rules. Under no circumstances may explosives, fireworks, or highly flammable orhighly corrosive materials be stored in them. Owners shall keep their storage lockershazard-free at all times. Owners shall supply their own locks to secure theirpossessions and shall be responsible for insuring stored items against loss.

6.26 Swimming Pools. No Owner or Resident shall permit any Person to usethe pools or pool areas except in strict accordance with the Association’s 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 Association’s Rules must besupervised by a Resident, not a guest.

6.27 Trash. All Owners shall comply with the laws and ordinances ofapplicable governmental authorities with respect to the disposal of trash and otherrubbish. No trash or other articles shall be placed in the Common Areas except asdesignated by the Board. However, this Section shall not prohibit the placing ofnormal deliveries of articles such as packages, newspapers or bottled water in frontof a Unit’s door; provided, however, that Owners shall not permit such items toaccumulate in a manner which in the Board’s opinion constitutes a nuisance or safety

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hazard. If in the opinion of the Board, items are accumulating which are unsightly orconstitute a nuisance, the Board may have them removed at the Owner’s expense.

6.28 View Protection and Plants. No tree, bush, plant, or shrub thatimpedes the view of any other Unit or encroaches on the Common Area shall beplaced 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 inviolation of this Section.

6.29 Violation of Law. Violation of any federal, state, municipal or locallaw, ordinance or regulation by Owners or their family, tenants, guests, or inviteeswhich affects the health, safety, and or property rights of other Owners, shall bedeemed a nuisance and a violation of these CC&Rs which may be abated as providedfor 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 allexterior 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 intendedfor window coverings. All portions of window coverings visible from outside the Unitshall be white or off-white.

ARTICLE 7LEASING OF UNIT

7.1 Restriction on Number of Units Leased. No more than 27 of the Unitsshall be leased at any time.

a. Prior Approval to Lease. No Owner shall lease his or her Unit withoutthe Association’s prior written approval. The Board shall respond to anyOwner’s written request for approval to lease within 15 days. If aresponse is not provided to the Owner at his last known address ofrecord within this time period, permission shall be deemed to have beengranted. Any such approval shall continue until (i) the Owner movesinto 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, afternotice and hearing to the Owner, the Board makes a good faithdetermination that the Owner is not attempting to lease the Unit andterminates the approval to lease.

b. Approval of Request. The Board shall grant an Owner’s request forapproval to lease a Unit if (i) the number of Units currently being leasedplus 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.

c. Denial of Request. The Board shall deny an Owner’s request forapproval to lease a Unit if (i) the number of Units currently being leasedplus Units which have Board approval for leasing is 27 or more, or (ii)leasing the Unit would violate any provision of these CC&Rs.

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d. Transfer of Title. If a particular Unit is owned by the Association, orif a Unit is leased in compliance with this Section when title to that Unittransfers to (i) a commercial lender following a default on a mortgage orother lien or (ii) an owner who acquires title by inheritance, or if thenew Unit owner is otherwise prohibited by law from evicting a tenantleasing the Unit prior to transfer of title, then the Association’s writtenapproval to lease that Unit shall be deemed to apply to the new Owner.

e. Grandfathered Tenants. If any Unit leased or rented on the date ofrecordation of these CC&Rs is in compliance with the leasing provisionsof the prior CC&Rs, the Owner of that Unit shall automatically begranted approval under this Section to lease that Unit. In all otherrespects, the leasing of that Unit shall be subject to all other terms andconditions of this Article.

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 beused for “time-share” purposes, hotel-like operations or other transient purposes. Inaddition, the lease agreement between Owner and Tenant shall be in writing andshall contain, at a minimum, the following terms: (i) the total number of tenantsauthorized, (ii) Tenant agrees to comply with the Association’s Governing Documentsand failure to do so constitutes a default under the lease; (iii) there shall be no rightof assignment or sublease; and (iv) Tenant shall obtain and maintain renter’sinsurance 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 bythe Tenant. This Section does not apply to roommates or other persons residing withthe Owner in the Owner’s unit.

7.3 Rules. Owners shall provide their Tenants with copies of and ensurecompliance with the Association’s Rules.

7.4 Common Area Facilities. Any Owner residing off-site and whose Unit isoccupied by others automatically relinquishes to their Unit’s Residents the Owner’srights to use the Association’s Common Area facilities until the Owner re-takespossession of the Unit.

7.5 Assignment of Rents.

a. Rental Payments. Owners retain the right to collect rent from theirUnits for as long as they are current in the payment of their Assessmentsto the Association. Once an Owner becomes 30 days delinquent, thatOwner’s right to collect rents from the Tenant is extinguished in favor ofthe Association. At that point the Association shall have the right,power and authority to collect current and back rent from that Unituntil the delinquent Assessments, late fees, interest, and collectioncosts are paid in full. The Association shall give at least 10 days writtennotice to the Owner and the Owner’s Tenant directing the Tenant tomake all rent payments to the Association until the delinquency iscured.

b. Owner Assignment to Association. If a Tenant fails to make any rentpayment to the Association as required under this Section, Owner

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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 Owner’s agent and onOwner’s behalf, to terminate the tenancy and evict any tenants; tobring unlawful detainer (eviction) proceedings or other actions to evictany tenants from the Unit; to bring an action for all rents and othersums due by the tenants; and to settle, compromise and release anysuch proceedings or actions, or to reinstate the tenant’s tenancy. Anyfees and costs awarded to the Association in connection with anyproceeding under this Section may be levied against the Owner as aSpecial Assessment.

c. Subordination to First Mortgage Holder. The assignment of rents andpowers described in this Section shall not affect, but shall in all respectsbe subordinate to, any assignment of rents by an Owner to the Unit’sfirst mortgage holder contained in a document recorded in the Office ofthe Los Angeles County Recorder. This subordination shall commencewith the Association’s receipt of written notice from the mortgageholder.

7.6 Unlawful Detainer to Enforce Rules. Owners shall be responsible forensuring their tenants’ compliance with the Association’s 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 theProperty, including without limitation drug-related activity. If Owner fails, within 30days of a written demand from the Board, and after notice and hearing as may berequired by law, to secure the tenants’ compliance with the Association’s CC&Rs,Bylaws, and Rules or to evict the tenants if required under this Section, Owner herebyexpressly grants and assigns to the Association the full authority, right and power asOwner’s agent:

a. To terminate any tenancy and evict any tenants on Owner’s behalf;

b. To institute and prosecute unlawful detainer (eviction) proceedings orother actions to remove any tenants from occupancy of the Unit, in thename of the Association on Owner’s behalf, and to recover and retakepossession of any Unit in the Association’s name on behalf of Owner;

c. To recover in such unlawful detainer proceedings or other actions allrents and other sums due by the tenants, on Owner’s behalf; and

d. In the Association’s name on the Owner’s behalf, and in theAssociation’s sole discretion, to settle, compromise and release any suchunlawful detainer proceedings or other actions, or to reinstate suchtenancies.

Any fees and costs awarded to the Association in connection with any unlawfuldetainer or other proceedings under this Paragraph may be levied against the Owneras a Special Assessment.

7.7 Grandfathered Tenants. If any Unit is leased or rented on the date ofrecordation of these CC&Rs and on that date is in compliance with the leasingprovisions 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 Ownerand Tenant shall be deemed to comply with the lease requirements set forth in thisArticle. In all other respects, the leasing of that Unit shall be subject to all otherterms and conditions of this Article.

ARTICLE 8PETS

8.1 Pet Limitation. No animal of any kind shall be raised, bred or kept inany 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, andno animal shall be kept, bred or maintained (i) for any commercial purpose, (ii) inunreasonable numbers, or (iii) if there would be any odor, noise or other nuisancewhich would unreasonably disturb the use and enjoyment of any portion of theProject by other Owners. The Board may establish additional Rules regarding thekinds and sizes of pets which may be kept as well as other pet issues.

8.2 Weight Limitation. No dog which exceeds a weight of 25 pounds ispermitted.

8.3 Grandfathered Pets. Pets residing at the Association on the date ofrecordation of these CC&Rs which were not in violation prior to that date but whichare prohibited under these CC&Rs are permitted provided, however, those pets areregistered with the Association. Residents may keep any such registered pets for aslong as the Resident resides at the Project. However, once the Resident has movedfrom the Project or the pet has died, the pet cannot remain at the Project or bereplaced except as provided for in these CC&Rs.

8.4 Visiting Dogs. Visiting dogs are not permitted if (i) the total number ofdogs 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 thisArticle, for pets residing at the Project.

8.5 Nuisance. Owners shall be liable to the Association and other Ownersfor any damage to person or property, or nuisance noise caused by the pets of suchOwners or their family or Tenants. The Board shall have the right to prohibit any petwhich, in its opinion, constitutes a nuisance to other Owners.

8.6 Service Animals. Pets otherwise prohibited in these CC&Rs which arekept for the purpose of servicing a Resident’s disability are allowed to the extentrequired by law, if this would constitute a reasonable accommodation, with (i)appropriate documentation showing compliance with this Section, and (ii) the Board’sprior written consent.

8.7 Dangerous Animals. No animal may be kept which the Board hasdetermined to be dangerous or has been designated as dangerous by anygovernmental 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 animalis in the Common Areas. Any animal not so controlled may be removed by the

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Association to a pound or comparable animal shelter under the same local jurisdictionas the Project.

8.9 Sanitation. Owners shall be responsible for immediately cleaning up anymess caused by their animals.

ARTICLE 9VEHICLES AND PARKING

9.1 Management of Parking. The Association shall manage and control theuse of all Common Area parking.

9.2 Exchange of Parking Spaces. Owners shall be entitled to exchange anyExclusive Use Common Area parking spaces assigned to their respective Units in theirindividual grant deeds, provided that: (1) a reciprocal deed of conveyance identifyingthe exchanged parking spaces, the exchanging Owners and their respective Units isexecuted by the exchanging Owners and recorded with the office of the Los AngelesCounty Recorder; and (2) no such exchange shall be effective if it would reduce thenumber of parking spaces to which such Owners were originally entitled. A copy ofthe recorded deed shall be delivered to the Board as soon as possible afterrecordation.

9.3 Restricted Parking. Only Vehicles may be parked or stored in parkingspaces. Vehicles shall be parked completely within the parking space. No RV,camper, boat, recreational water craft, trailer or any other similar Vehicle ispermitted in any portion of the Common Areas or in any parking space.

9.4 Commercial Vehicles. Commercial trucks which are over 3/4 ton orcreate a hazard or nuisance are prohibited on the Common Areas, except theAssociation may allow contractors’ vehicles on site subject to reasonable Rules.

9.5 Guest Parking. Guest parking is limited and there shall be no guestparking except as provided for in the Rules. Owners’ guest parking privileges may besuspended for delinquencies and Rules violations.

9.6 Proper Operating Condition. All Vehicles shall be maintained in properoperating 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 theCommon Areas except as necessary to move the Vehicle into or out of the parkingspaces.

9.8 Electric Vehicles. No electric Vehicles are permitted to be rechargedon the Project except at the Owner’s expense.

9.9 Motorcycles. Motorcycles must be configured so as to provide for theirquiet operation.

9.10 Repair of Vehicles. No Owner shall construct, repair, or service anyVehicle within any portion of the Project, except for emergency repairs to the extent

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necessary for the movement of the Vehicle to a proper repair facility, or other minorwork, if any, authorized in the Rules.

9.11 Washing of Vehicles. Vehicles may not be washed or detailed on theProject.

9.12 Fluid Leaks. Owners must keep the Common Area free of fluids such asoil, radiator coolant, brake fluid, power steering fluid, etc. Owners who fail to do somay be fined or specially assessed for the cost of cleaning the affected areas.

9.13 Damage and Theft. Unless caused by their intentional misconduct orgross negligence, neither the Association nor its Officers, Directors, Committeemembers, employees or agents shall be liable for any loss or damage suffered byreason of theft of or damage to any Vehicle.

9.14 Impeding Access. No Vehicle shall be parked in such a manner as toimpede 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 Owner’s expense asallowed by law.

ARTICLE 10ARCHITECTURAL CONTROL

10.1 Prior Approval of Improvements. No addition, change, or alterationmay be made to any of the following areas until plans and specifications showing itsnature, 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. Any Unit’s perimeter walls, bearing walls, utility lines or plumbing;

b. A Building’s exterior, including windows, doors, Balconies, porches, androof decks;

c. Any Common Area;

d. Exclusive Use Common Area, including steps, porches, and Balconies; or

e. Any other Improvement, excluding fixtures or build-outs (such ascabinets) inside the Unit that do not affect or alter in any way aBuilding’s structure or its electrical, water, or utility lines.

10.2 Decorating Unit. Owners shall have the right to decorate the interiorsurfaces of the walls, partitions, ceilings, floors, and doors within their Unit withoutprior approval if the work does not impair or affect the structural integrity, utilitylines, plumbing, or mechanical systems or lessen the support of any portions of theProject.

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10.3 Specific Restrictions.

a. No Washers and Dryers. Washers and dryers are prohibited in Units,provided any washers or dryers installed in a Unit prior to the date ofrecordation of these Restated CC&Rs with proper Code-complianthookups shall be grandfathered in.

b. No Balcony Enclosures. Balconies may not be enclosed.

c. No Roof Alterations. No Owner shall have the right to build onto theAssociation’s roofs except for solar panels to the extent allowed by lawand air conditioning units installed with the Board’s prior writtenapproval. Skylights are specifically prohibited. No variances may beissued to waive this provision.

d. Chandeliers and Ceiling Fans. No chandeliers or ceiling fans weighingmore than 75 pounds shall be installed in any Unit without the priorwritten approval of the Board.

e. Acoustical Limitations.

(1) Hard-surfaced floors such as marble, granite, tile, hardwood, etc.must have proper noise insulating materials installed so as toavoid noise problems with neighboring units. Specificrequirements for appropriate soundproofing may be set forth inthe Rules. Any hard-surfaced floors existing in any Unit as of thedate of recordation of these CC&Rs is exempt from thisrestriction, although any replacement of such flooring mustcomply with this Section.

(2) It is the responsibility of Owners of Units on the second floor orhigher to maintain their plywood sub-floor in a squeak-freecondition. Most squeaks are caused by loosened pieces ofplywood sub-floor which rub against either a loose nail or anotherpiece of sub-floor when it is walked upon. For the longest lastingcorrective results, it is recommended that all loose pieces of sub-floor be secured by screws rather than nails.

f. Solar Energy Systems. The following restrictions apply to theinstallation of solar energy systems as defined in California Civil CodeSection 801.5(a)(1) and (2).

(1) Compliance. Solar energy systems shall meet applicable healthand safety standards and requirements imposed by state and localpermitting authorities.

(a) Solar energy systems for heating water shall be certified bythe Solar Rating Certification Corporation (SRCC) or othernationally recognized certification agencies. SRCC is anonprofit third party supported by the United StatesDepartment of Energy. The certification shall be for theentire solar energy system and installation.

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(b) Solar energy systems for producing electricity shall alsomeet all applicable safety and performance standardsestablished by the National Electrical Code, the Institute ofElectrical and Electronics Engineers, and accredited testinglaboratories such as Underwriters Laboratories and, whereapplicable, rules of the Public Utilities Commissionregarding safety and reliability

(2) Approval. The Board shall approve an Owner’s application forapproval to install a solar energy system if the installation wouldcomply in all respects with applicable law, this Section, and anyreasonable restrictions adopted by the Board as stated in thisSection. The Board’s approval or denial of an application shallbe in writing. If the application is not denied in writing within 60days from the date of receipt of the application, the applicationshall be deemed approved unless that delay is the result of theBoard’s reasonable request for additional information.

(3) Standards. The Board may adopt reasonable restrictions on theinstallation and maintenance of solar energy systems. Therestrictions on solar energy systems will not significantly increasethe cost of the system or significantly decrease its efficiency orspecified performance. The restrictions may allow for analternative system of comparable cost, efficiency, and energyconservation benefits. Unless more restrictive requirements areallowed by law, the following shall apply:

(a) For solar domestic water heating systems or solarswimming pool heating systems that comply with state andfederal law, “significantly” means an amount exceeding 20percent of the cost of the system or decreasing theefficiency of the solar energy system by an amountexceeding 20 percent, as originally specified and proposed.

(b) For photovoltaic systems that comply with state andfederal law, “significantly” means an amount not toexceed two thousand dollars ($2,000) over the system costas originally specified and proposed, or a decrease insystem efficiency of an amount exceeding 20 percent asoriginally specified and proposed.

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

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a. The modifications shall be consistent with applicable Building Coderequirements and with the intent of other applicable provisions of theGoverning Documents pertaining to safety or aesthetics.

b. Modifications external to the dwelling shall not prevent reasonablepassage by other residents, and shall be removed by the Owner whenthe Unit is no longer occupied by persons requiring those modificationswho are blind, visually handicapped, deaf, or physically disabled.

c. Any owner who intends to modify a Unit subject to this Section shallsubmit plans and specifications to the Association for review todetermine whether the modifications will comply with the provisions ofthis paragraph. The Association shall not deny approval of the proposedmodifications under this Section without good cause.

10.5 Submission of Plans. Plans and specifications for the proposedmodification shall be submitted to the Board by personal delivery or certified mail. The Board may also require additional plans and specifications containing suchadditional details and/or items as it may specify.

10.6 Standards for Approval. The Board shall take into consideration qualityof workmanship and materials; harmony of external design and location in relation tosurrounding areas; and effect on the Building structure, utilities, plumbing and otherCommon Areas. It shall approve plans and specifications submitted to it only if itdetermines that the work:

a. Will not be an unreasonable detriment to the surrounding area of theProject;

b. Will be substantially consistent with, and in harmony with, the generaldesign, character and appearance of the Project;

c. Will not unreasonably detract from the attractiveness or use of anyportions of the Common Area which are used or enjoyed by Owners andResidents;

d. Will not result in an unreasonable increase in Common Expenses; and

e. Will not impair the structural integrity or sound attenuation levels ofany portion of the Project.

10.7 Conditions for Approval. The Board may condition its approval of plansand specifications on such changes as it deems appropriate and on anything else thatit considers reasonable or appropriate under the circumstances, including but notlimited to:

a. Assurance that all required permits and other approvals will beobtained;

b. Deposits with the Association or with others to assure completion;

c. The posting of completion and/or payment bonds;

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d. Use of licensed and insured contractors and/or subcontractors;

e. Scheduling and conducting construction in a way that will notunreasonably disturb other Owners and Residents;

f. Approval of contracts with contractors, subcontractors and/or materialsuppliers;

g. Agreements entered into with the Association, including agreementsproviding reimbursement to and/or indemnification of the Association;and

h. Obtaining specified insurance coverages.

10.8 Review Fees and Remodeling Agreement. The Board may establish aschedule of fees which may be charged against the submitting party to defray anycosts incurred by the Association including architectural and/or engineeringconsultant fees, legal fees, and expenses for reviewing plans. In addition, the Boardmay require Owners to sign a remodeling agreement.

10.9 Board Decision.

a. Timely Response. The Board may postpone its review until it hasdetermined that a full and complete submission has been made to it ofall things which it deems necessary under the circumstances, including,if required, additional plans and specifications. Except as otherwisestated in this Article, if the Board fails to approve or disapprove themodification within 45 days after said complete plans and specificationshave been submitted to it, the request shall be deemed approved,except any portion of the plans or specifications which (i) violates anyprovision of the Association’s Governing Documents, California law, orlocal ordinances; (ii) adversely affects the Building’s structural integrity;(iii) alters the Project’s exterior appearance; or (iv) creates a health orsafety risk shall be deemed automatically rejected.

b. Rejection of Application. If the Board disapproves a proposed change,it shall issue a written decision including both an explanation of why theproposed change is disapproved and a description of the procedure, ifany, for reconsideration of the decision by the Board.

10.10 Permits. Any Board approval for architectural changes shall beautomatically contingent on the Owner obtaining all required permits for the projectprior to commencement of the construction, including without limitation building,electrical, plumbing, and air conditioning permits, and on the Owner having suchpermits signed off on completion of the project. Owners must submit to theAssociation proof of proper permitting before commencing work.

10.11 Reconsideration.

a. Final Decision. Any decision on an Owner’s application shall be final ifit was made at an open meeting of the Board.

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b. Reconsideration by Board. To the extent required by statute, if theAssociation’s decision on an Owner’s application was not made in anopen meeting of the Board, the Owner may request that the Boardreconsider the decision at an open Board meeting. The Board shallrender its decision in writing within 45 days of receiving the Owner’srequest. If the Board rejects the Owner’s application, its writtenfinding shall include an explanation of why the proposed change isdisapproved.

10.12 Engineering and Code Requirements. Plans and specificationsapproved by the Association are not approved for engineering design or Building Codespecifications. Owners submitting plans for review by the Association assume fullresponsibility for ensuring compliance with applicable Building Codes, ordinances andspecifications.

10.13 Diligent Construction. The approval of any architectural submissionshall be deemed conditional upon the commencement of such work within 120 daysafter approval has been obtained, or within such other period as shall have beenspecified by the Board at the time of its approval. In addition, all approvals shall beautomatically revoked on transfer of title to the Unit if work is not started beforethen. Work must be prosecuted diligently to completion within a reasonable timeand in any event before the expiration of any time frame reasonably set by theBoard. Extensions may be granted for delays caused by strikes, fires, holidays orother events beyond the Owner’s control. If the work has been commenced but notfinished by the completion date which has been set or approved by the Board and noextensions have been granted, the Association may impose fines to accrue at a dailyor weekly rate until the work is completed.

10.14 Variances. The Board shall be entitled to allow reasonable varianceswith respect to this Article in order to overcome practical difficulties, avoidunnecessary expense or prevent unnecessary hardship. Variances must be in writingand signed by a member of the Board. Variances may be recorded with the LosAngeles County Recorder at the option of the Owner or the Association. Variancesmay only be granted based on the Board’s good faith determination that:

a. The requested variance does not constitute a material deviation fromthe overall plan and scheme of development within the Project or fromany restriction in these CC&Rs; or

b. The requested variance allows the objectives of the violatedrequirement(s) to be substantially achieved despite noncompliance; or

c. The variance relates to a requirement under these CC&Rs that isunnecessary or burdensome under the circumstances; or

d. The variance, if granted, will not result in a material detriment, orcreate an unreasonable nuisance, with respect to the Common Area orany other Owner within the Project.

10.15 Notice to Neighbors. If the proposed alteration requires a variance, orif the Board determines that the proposed alteration could have a substantialnegative 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 beforemaking a determination on whether to grant the variance.

10.16 Variance Not a Waiver. The granting of a variance by the Board shall inno event be deemed a variance or waiver as to any other Unit, nor shall any varianceaffect the applicability or enforceability of any provision of this Article in respect toany other Unit

10.17 Non-Complying Modifications. If the work as actually constructed doesnot match the architectural submission approved by the Board, it shall be deemedunapproved. The Owner shall either promptly correct the deficiency to match theoriginal submission or remove the modification and return the area to its originalcondition within the time frame set by the Board, and once this is done shallpromptly allow the Association to inspect the modification for compliance.

10.18 Architectural Rules. The Board may adopt, amend, and repealarchitectural Rules. These architectural Rules shall interpret and implement theprovisions of these CC&Rs by setting forth the standards and procedures for thereview and approval of proposed modifications, guidelines for architectural designand placement of any modification, color schemes, exterior finishes and materials,and similar features which are recommended for use within the Project, providedthat the architectural Rules shall meet the minimum standards required by theseCC&Rs. In the event of any conflict between the architectural Rules and theseCC&Rs, the CC&Rs shall prevail.

10.19 Mechanics Liens. Owners shall ensure that no lien is placed against anyother 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 theresponsible Owner does not immediately cause the removal of the lien, theAssociation may, after written notice to the responsible Owner, pay the amountsnecessary to have the lien removed and levy a Special Assessment against theresponsible 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 orprejudice suffered or claimed on account of the Board’s or any Committee member’sapproval or disapproval of any plans, drawings or specifications, or the conformanceof the construction with the approved plans.

10.21 Conflicts of Interest. No Director may participate in the decision-making process of any architectural submission made by that Director or Committeemember or members of their family. Further, no Director may participate in thedecision-making process of any other architectural submission if it results in amonetary benefit to the Director or any company in which they or members of theirfamily 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 statingwhether the modifications comply with the CC&Rs. Prior to issuing such a certificate,the Board may require a certificate executed by an independent architect statingthat the construction has been completed in substantial conformity with the plansand 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 bythe Board, the Board shall execute an estoppel certificate, signed by any twoDirectors, certifying whether, as of the date of the certificate, the modifications tothe Owner’s Unit comply with these CC&Rs. If they do not comply, the certificateshall specify what portions of the modifications are in violation. The time frame forproviding the certificate shall be tolled for any time period during which the Ownerfails to provide access to inspect the modifications or documentation needed toverify compliance, such as proper permits. Any Person receiving title to the Unitshall 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 11COMBINING UNITS

11.1 Approval Requirement. No Owner may combine adjoining Units withoutwritten approval of the Board of Directors. Approval, if any, shall be subject to:

a. Architectural Plans. Architectural plans of the proposed combinationof the Units which include the effects of the proposed combination onCommon Area plumbing and wiring as well as written assurances from alicensed structural engineer that the changes will not lessen thestructural support of any part of the Project.

b. Bond. A bond at Owner’s expense assuring the prompt completion ofthe work free of mechanic's liens which names the Association as anobligee.

c. Permits. All building and other governmental permits required for theproposed combination.

d. Contractor Insurance. A certificate reflecting that the contractor

selected to perform the work has liability insurance and workers'compensation coverage in appropriate amounts.

e. Miscellaneous. Any other documentation which the Board of Directorsmay reasonably require including a refundable security/damage depositin an amount to be set by the Board in addition to a reasonable fee forreviewing the submission and inspecting the work.

11.2 Prohibition Against Combination. Any proposed combination of theUnits which would in any way result in the removal of any structural support for anyUnit 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 Boardmay require the Owner to execute an agreement titled a “Covenant to Run with theLand” wherein the Owner agrees to return the combined Units into two separateUnits with their original dimensions and footprint prior to transferring title. TheCovenant to Run with the Land shall be recorded against the Unit with the LosAngeles County Recorder.

11.4 Indemnity. Owners who combine Units shall hold harmless, indemnifyand 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 orproperty related to or arising from the work performed.

11.5 Rescinding Approval. The Board has the right to rescind its approval ifthe work is not done in accordance with the documentation which had previouslybeen submitted to, and approved by, the Board, or the Board reasonably concludesthat the structural integrity of a Building has been impaired. In such event, the Unitshall at Owner's sole expense be made to conform with the documentation submittedto the Board or be restored to its prior condition.

11.6 Effect of Combination. Combining Units shall have the followingconsequences:

a. Interest in Common Area. The interest in the Common Area allotted tothe combined Units shall be equal to the sum of the Common Areainterest of each of the combined Units.

b. Assessments. The Assessments due and owing on the combined Unitsshall be equal to the sum of the Assessments levied against each of therespective Units so combined.

c. Voting Rights. The owner of the combined Unit shall have the numberof 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 ofthe new Unit would retain two votes as a member of the Association.

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 ofthe Board of Directors to divide the Units and thereby restore them to their originaldimensions and footprint.

ARTICLE 12ASSESSMENTS

12.1 Purpose of Assessments. The general purpose of Assessments is topromote 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 theProject and the value of the Project; provide for the acquisition and maintenance ofproperty, services and facilities devoted to these purposes; and any action orundertaking on behalf of the Association in furtherance of these purposes.

12.2 Regular Assessment. The Board shall levy Regular Assessments in anamount sufficient to provide for the performance by the Board of each and every oneof its powers and duties provided, however:

a. 20% Limitation. The Board may modify the Regular Assessments duringthe course of a fiscal year if necessary to conform to a revised estimateof costs and expenses. However, the Board shall not, without theapproval by vote or written consent of Owners constituting a majority ofa Quorum of all Owners, impose a Regular Assessment which is more

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than 20% greater than the Regular Assessment for the immediatelypreceding fiscal year.

b. Rate for New Fiscal Year. If an annual Regular Assessment is notpublished for a new fiscal year, the Regular Assessment for the priorfiscal year shall apply and govern each Owner’s payments until changedby a new Regular Assessment.

c. Assessment Allocation. Regular Assessments shall be levied pro rata inaccordance with the Assessment Schedule contained in Exhibit “A.”

d. Payable Monthly. Regular Assessments shall be payable by each Owneragainst whom assessed in 12 equal monthly installments on the first dayof each calendar month (commencing with the date on which hebecomes an Owner and prorated to that date) or at such other dates andin such other installments as the Board shall determine.

e. Written Notice. Written notice of any increase in Regular Assessmentsshall be sent by first-class mail to each Owner not less than 30 days normore than 60 days prior to the increased Assessment becoming due.

12.3 Special Assessment. In addition to the Regular Assessment, the Boardmay levy a Special Assessment for any purpose necessary for the Association to carryout its duties, provided, however:

a. Five Percent Limitation. The Board shall not, without the approval byvote or written consent of Owners constituting a majority of a Quorumof all Owners, impose a Special Assessment which is more than fivepercent of the budgeted gross expenses of the Association for such fiscalyear. This limitation does not apply to a Special Assessments leviedagainst only one Owner as provided in these CC&Rs.

b. Rate of Assessment. Special Assessments shall levied pro rata againsteach Unit, in accordance with the Assessment Schedule contained inExhibit “A.”

c. Assessment Against Individual Unit. Special Assessments may also belevied against individual Owners for reimbursement of expenses incurredby the Association arising out of actions or omissions of such Owners ortheir family, Tenants, guests, or pets. Such expenses shall include butnot be limited to:

(1) Enforcing compliance with the Association’s GoverningDocuments;

(2) Mitigating or repairing damage to Association property orCommon Areas;

(3) Reasonable attorneys’ fees and costs, regardless of whether legalproceedings were instituted; and

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(4) Materials and/or services provided by the Association to Ownersor their family, Tenants or guests.

d. Payment Schedule. Special Assessments shall be payable by eachOwner against whom assessed: (i) monthly, or (ii) at such dates and insuch installments as the Board shall determine.

e. Written Notice. Written notice of Special Assessments shall be sent byfirst-class mail to each Owner not less than 30 days nor more than 60days prior to the Assessment becoming due.

12.4 Owner Vote on Assessments. Any Owner vote on increasing regularAssessments or levying Special Assessments shall be conducted by secret writtenballot, using the procedures for ballots, proxies, inspectors of election, tabulating thevote, and storage and availability of ballots set forth in the Bylaws.

12.5 Emergency Situations. Notwithstanding any other provision, the Boardmay increase Regular Assessments without regard to the 20% limitation or levy SpecialAssessments without regard to the five percent limitation for emergency situations. If a Special Assessment or an increase to the Regular Assessment is imposed for anemergency situation without Owner approval, the Board shall pass a resolutioncontaining written findings as to the necessity of the extraordinary expense involvedand why the expense was not or could not have been reasonably foreseen in thebudgeting process. The resolution shall be distributed to the Owners with the noticeof Assessment. For purposes of this section, an emergency situation is any one of thefollowing:

a. Order of Court. An expense required by an order of a court ofcompetent jurisdiction.

b. Threat to Personal Safety. An extraordinary expense necessary torepair or maintain the Project or any part of it for which the Associationis responsible where a threat to personal safety on the Project isdiscovered.

c. Unforeseen Expenses. An extraordinary expense necessary to repair ormaintain the Project or any part of it for which the Association isresponsible and could not have been reasonably foreseen by the Board inpreparing and distributing the pro-forma operating budget.

12.6 Deposit of Assessments. All sums received by the Association shall bepromptly deposited into accounts clearly designated in the Association’s name.

a. Commingling. The Association shall maintain separate accounts for itsoperating funds and its reserves, respectively, and no funds from thoseseparate accounts shall be commingled at any time.

b. Interest. No Owner shall have the right to receive interest on any suchfunds deposited.

12.7 Disbursement of Funds. All checks, drafts or other orders for paymentof 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 themanaging agent of the Association. In the absence of the President or Treasurer, anyother Director may be a co-signer. Notwithstanding the foregoing, disbursementsmay be paid by the managing agent without counter-signature by the Board pursuantto a management contract for amounts under an amount authorized by the Board. However, all reserve account withdrawals or transfers shall require approval by theBoard and signatures by two Directors.

12.8 Reserves. Notwithstanding the foregoing, all sums assessed andcollected by the Association which are budgeted to fund reserves shall:

a. Funding. Be funded by Regular Assessments, except that repaying aloan from the Reserve Fund may be done via a Special Assessment.

b. Contributions to Capital. Be received by the Association ascontributions to the capital of the Association by the Owner assessed.

c. Segregated. Be received in trust by the Board, set aside andsegregated from the other monies and not commingled with theAssociation’s operating account.

d. Invested. Be invested in low-risk investments. The Board will insertinto the minutes of an open Board meeting its selection of aninvestment vehicle along with its reasons for selecting that method. Inmaking this choice, the Board may rely on the advice of a duly licensedprofessional.

e. Restricted Use. Be used for the sole purpose of paying the cost of long-term maintenance, repair and replacement of capital Improvementsupon the Common Area, the cost of which would not ordinarily beincurred on an annual basis.

f. Two Signatures. Be withdrawn from the Reserve account only uponapproval by the Board and the signature of two members of the Board.

g. Temporary Transfers. Notwithstanding the foregoing, the Board mayauthorize the temporary transfer of money from a Reserve fund to thegeneral operating fund of the Association to meet short-term cash flowrequirements or other expenses. The transfer shall be noted in theminutes of a Board meeting and the transferred funds shall be restoredto 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 delaywould be in the best interests of the Association, delay the restorationuntil the time which the Board reasonably determines to be necessary.

h. No Reimbursement. All contributions to the reserves as well as interestearned are for the benefit of the Association and not to the benefit ofany individual Owner. As such, contributions and interest are notrefundable to Owners when they cease to be Owners.

12.9 Television or Internet Assessment. If the Board elects to contract acable 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 anAssessment against each Owner for the cost of such service.

ARTICLE 13ENFORCEMENT OF ASSESSMENTS

13.1 Liability for Assessments. Assessments, together with charges,interest, costs, and attorneys’ fees (regardless of whether legal proceedings areinstituted), shall be a charge on the land and shall be a continuing lien upon theproperty against which each such Assessment is made. In addition, Owners shall bepersonally liable for any and all Assessments provided for by these CC&Rs togetherwith any accompanying late charges, interest, costs, attorneys’ fees (regardless ofwhether legal proceedings are instituted), and penalties as may be authorized underthese CC&Rs. In a voluntary conveyance of a Unit by an Owner, the buyer shall bejointly 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 withoutprejudice to the buyer’s right to recover from the seller the amounts paid by thebuyer.

13.2 Enforcement Rights. Any Assessment made in accordance with theseCC&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, theBoard has the right to collect delinquent Assessments as follows:

a. Late Fees and Interest. Unpaid Assessments shall be deemeddelinquent 15 days after they are due and shall be subject to latecharges and interest as follows:

(1) A late charge of 10% or $10.00, whichever is greater. A latecharge may not be imposed more than once on any delinquentpayment.

(2) Interest at the rate of 12% per annum. Interest shall commence30 days after the Assessment becomes due.

b. File Suit. The Association may commence and maintain a lawsuitdirectly on the debt without waiving its right to establish a lien andinitiate foreclosure against the Owner’s Unit for the delinquentAssessment. In any action to collect delinquent Assessments, latecharges or interest, the prevailing party shall be entitled to costs andreasonable attorneys’ fees. If such costs and fees are awarded to theAssociation, they shall become a Special Assessment against the Ownerand shall be fully enforceable by all means provided for in these CC&Rsincluding lien and foreclosure.

c. Lien and Foreclosure. A delinquent Assessment or installment,together with any late charges, interest, costs, attorneys’ fees andpenalties 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 anaction for judicial foreclosure or by nonjudicial foreclosure.

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d. Collect Rent. The Association may collect the rental income from Unitsof delinquent Owners as provided for in these CC&Rs.

e. Additional Remedies. The remedies provided in this Section shall be inaddition to and not in substitution for any other rights and remedieswhich the Association may have.

13.3 Foreclosures. At any foreclosure proceeding instituted by theAssociation, the Association, through its Board, may bid on the Unit at the sale, andmay hold, lease, mortgage, and convey the acquired Unit.

13.4 Application of Proceeds. The proceeds of any judgment or foreclosureor trustee’s sale provided for in these CC&Rs shall first be paid to discharge theAssociation’s costs of collection, including attorneys’ fees; next to satisfaction of allcharges and assessments owed by the defaulting Owner; next to any liens recordedagainst the Unit after the Association’s lien for delinquent assessments; and anyremaining balance to the defaulting Owner.

13.5 Waiver of Objection. Each Owner vests in and delegates to the Boardor its duly authorized representative the right and power to bring all actions at law orlien foreclosures, whether judicially or by power of sale, or otherwise, against anyOwner or Owners for the collection of delinquent Assessments in accordanceherewith, and expressly waives any objection to the enforcement in accordance withthese 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 bythe 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 exercisingits duties and powers as provided in these CC&Rs; (ii) an Owner has made or elects tomake no use of the Common Area; (iii) any construction or maintenance for which theAssociation is responsible has not been performed; or (iv) any construction ormaintenance for which the Association is responsible has not been performed to anOwner’s satisfaction.

13.7 Subordination of Certain Trust Deeds. The Assessment lien shall beprior to all encumbrances against the Unit, whether the notice of assessment isrecorded before or after such encumbrance. Specifically excepted from thisprovision are taxes, bonds, assessments and other levies which by law are prior to theAssessment lien, and the lien of any first mortgage or first deed of trust in favor ofany mortgagee made in good faith and for value and recorded with the Los AngelesCounty Recorder before the Assessment lien.

13.8 No Exemption by Waiver of Use. Owners may not exempt themselvesfrom liability for Assessments nor release their Units from liens and charges by waiverof their use and enjoyment of the Common Areas or by abandonment of their Units orthrough non-use of any Common Areas or membership privileges.

13.9 Waiver of Exemptions. Owners, to the fullest extent permitted by lawwith respect to liens created pursuant to these CC&Rs, waive the benefit of anyexemption or redemption laws of the State of California in effect at the time anypayment of any Assessment becomes delinquent, and shall be deemed to be estopped

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to raise exemptions or redemptions in any action or proceeding to enforce orforeclose such liens.

13.10 Attorneys’ Fees. Any reasonable attorneys’ fees and costs incurred bythe Association in the enforcement of its Assessment rights against an Owner may belevied against that Owner by the Board as a Special Assessment which may becollected in any manner provided for by these CC&Rs or by law.

ARTICLE 14INSURANCE

14.1 Association Insurance. The Association shall obtain and maintain thefollowing policies of insurance:

a. Direct Physical Loss. Loss or damage by fire or other risks covered bythe standard “Special Form” policy (or its equivalent) on all CommonArea improvements. The amount of such insurance shall be not lessthan 100% of the aggregate full insurable value, meaning actualreplacement value. The coverage shall be written on a blanket basiswith 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 anyincreased costs of construction following a covered loss whichmay be imposed due to changes Building Codes or ordinances.

(2) “Maintenance Fees Receivable” coverage (or its equivalent) tocover the loss from unpaid or uncollected assessments resultingfrom a covered property loss.

(3) “Demolition and Debris Removal” endorsement in the amountsadequate to cover demolition and debris removal costs.

(4) Such other endorsements which the Board may deem necessary orreasonable.

b. Comprehensive or Commercial General Liability (“CGL”). TheAssociation shall maintain one or more CGL policies which shall provideappropriate liability limits for injury or death to one or more persons inany one accident or occurrence. The Association shall carry coverage ofat least $3 million, or any greater amounts specified in Civil CodeSection 1365.9, as amended from time to time.

c. Directors and Officers. The Association shall purchase directors andofficers errors and omission insurance which shall provide appropriateliability limits insuring Directors, Officers, Committee members, andmanagement employees. The Association shall carry coverage of atleast $1 million, or any greater amount specified in Civil Code Section1365.7, as amended from time to time.

d. Workers Compensation. The Association shall carry workerscompensation and employer’s liability insurance as may be appropriate.

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e. Fidelity Bond. The Association may, at its option, maintain blanketfidelity bond coverage for all Directors, Officers, Committee members,and employees of the Association handling funds of the Association orthird party property of at least 150% of the estimated annual operatingexpenses and reserves of the Association. In the event the Associationhas delegated some or all of the responsibility for the handling of fundsto a management agent, the management agent shall be required tomaintain blanket fidelity bond coverage for those persons handling orresponsible for funds of the Association.

f. Employment Practices Liability. If the Association has employees, itshould, depending on cost and availability, purchase employmentpractices liability coverage.

g. Boiler and Machinery Insurance. If appropriate, the Association shallpurchase insurance for the loss or damage to or as a result of boilers,pressure vessels and pressure pipes.

h. Earthquake and Flood Insurance. The Association may purchaseappropriate levels of earthquake or flood insurance. If the Board hasdecided not to purchase earthquake insurance for the Association’simprovements, that decision must be made as part of the Board’s annualinsurance disclosure to the membership.

14.2 Owner Obligation to Carry Insurance.

a. Required Insurance Coverage. At their sole expense, Owners shallpurchase the following insurance: (i) real property coverage forreplacement cost, which insures their Unit’s improvements and contentsagainst damage or loss; (ii) personal property coverage for replacementcost; (iii) premises liability of at least $500,000, which includesprotection for bodily injury and property damage; (iv) loss of usecoverage of either actual loss sustained or at least $50,000, whichprotects an Owner for additional living expenses should his or her Unitbecomes uninhabitable due to a covered loss; and (v) loss assessmentcoverage which protects against special assessments due to a loss whichexceeds the Association’s master policy limits of at least $10,000 perloss or occurrence. In addition, if Owners operate Vehicles which aredriven across or stored in the Association’s Common Areas, they mustcarry appropriate automobile insurance.

b. Enforcement. The Association may but is not required to and isspecifically relieved of any responsibility or liability for policing thisSection.

c. Assignment of Proceeds. If any loss intended to be covered by theAssociation’s insurance occurs and the proceeds payable are reducedbecause of an Owner’s insurance coverage, that Owner shall assign suchinsurance proceeds to the Association, to the extent of the reduction. The Board shall apply those proceeds to the same purposes as thereduced proceeds received by the Association.

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14.3 Owner Waiver of Claims. All insurance individually carried by an Ownermsut contain a waiver of subrogation rights by the insurer as to the other Owners, theAssociation, and its Officers, Directors, employees, and agents.

a. Against Association Insurance. The Owners hereby waive their right tomake any claim against any Association insurance policy, to the extentthat the damage claimed would be covered under the homeownersinsurance policy which Owners are required under this Article to carry,regardless of the cause of the damage and regardless of whether or notthe Owner actually has such insurance coverage.

b. Against Other Parties. The Owners hereby waive and release all claimsagainst the Association, the Board, other Owners, and agents andemployees of each of the foregoing, with respect to any loss covered bythe Owner’s insurance, whether or not caused by negligence of orbreach of any agreement by said persons, but to the extent of insuranceproceeds received in compensation for such loss only.

c. Losses Covered by Association’s Insurance. To the extent it will notvoid or impair the Association’s insurance, each Owner hereby waivesand releases all claims against the Association, its employees, Directors,Officers, Committee members, and agents, and all other Owners withrespect to any loss covered by any insurance policy maintained by theAssociation, to the extent of insurance proceeds actually received bythe Owner or applied to the Owner’s benefit. This applies whether ornot the claim was caused by the negligence of, or breach of anyagreement by, said persons, but only to the extent of the insuranceproceeds received in compensation for such loss.

14.4 Management of Claims.

a. Submission of Claims. The Board and not individual Owners shalldetermine which claims, if any, shall be submitted to the Association’sinsurance carrier. The Board may take into account the Association’sclaims history, the amount of the deductible, the apparent merit of theclaim, and any other relevant factors, and shall make a businessjudgment over whether a claim shall be submitted. If an Owner makesan unauthorized claim against the Association’s insurance which resultsin an increase in the Association’s insurance premiums, the amount ofthe increase shall be assessed against the Owner and his or her Unit as aSpecial Assessment.

b. Settlement of Claims. The Association is authorized to negotiate andagree on the value and extent of any loss under any policy of insurancecarried by the Association. The Association is granted full right andauthority to compromise and to settle any claim or enforce any claim bylegal action or otherwise and to execute releases in favor of anyinsusrer.

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

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designate the contractor to perform the repairs to the Common Areas. IndividualOwners shall be responsible for overseeing repairs done to their respective Units.

14.6 Choice of Insurance Company. All policies of insurance obtained by theBoard shall be from an insurance company qualified to do business in the State ofCalifornia and holding a Best’s Insurance Reports rating of “A” or better or such othercomparable rating as may be given by Standard and Poor’s.

ARTICLE 15ENFORCEMENT

15.1 Owner Enforcement Rights. These CC&Rs may be enforced by anyOwner. Any Owner shall be entitled to bring an action against any defaulting Ownerfor damages or to enjoin any violation of these CC&Rs.

15.2 Association Enforcement Rights. In addition to any other rightsdescribed in these CC&Rs and without waiving the Association’s right to instituteother enforcement measures, and subject to the notice and hearing provisionsdescribed below, the Governing Documents may be enforced by any or all of thefollowing as may be appropriate:

a. Monetary Penalties. The Board may assess reasonable monetarypenalties for violations of the Association’s Governing Documents by anOwner or Owner’s family, Tenants, or guests. Monetary penalties maybe incurred automatically on an ongoing basis for continuing violations,until the violation is cured. Owners shall be liable for all costs ofcollection of monetary penalties, including late fees and interest in thesame amounts and manner as provided for delinquent Assessments,reasonable attorneys’ fees, court costs and related expenses.

b. Demand to Cure. The Association may require an Owner to cure anyviolation existing in the Owner’s Unit or Exclusive Use Common Area. Iffollowed by Association entry to cure as provided in these CC&Rs, unlessotherwise provided, the Association shall give the Owner and UnitResident, if different, at least 30 days prior written notice to cure theviolation before serving notice of its intent to enter.

c. Suspend Common Area Privileges. The Board may suspend theCommon Area privileges of Owners and their family, Unit Residents, andguests, including parking spaces assigned by the Board, for failure by anyof the above to comply with the Association’s Governing Documents,including delinquency of more than 60 days in payment of anyAssessment. Any such suspension shall be for a period of time not toexceed 30 days for any noncontinuing violation. For continuingviolations, the suspension may be imposed for as long as the violationcontinues. Regular and Special Assessments shall continue to accrue andshall be due and payable notwithstanding the suspension of membershiprights and privileges.

d. Suspend Voting Rights. The Board may suspend an Owner’s votingrights for failure to comply with the Governing Documents as provided inthe Bylaws. Regular and Special Assessments shall continue to accrue

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and shall be due and payable notwithstanding the suspension ofmembership rights and privileges.

e. Judicial Enforcement. A lawsuit for damages and/or injunctive reliefmay be filed, whether or not the relief sought is for negative oraffirmative action.

15.3 Nuisance; Remedy. Every act or omission by which any provision,covenant, condition, restriction, easements, or reservation contained in theGoverning Documents is violated in whole or in part, is declared to be and constitutesa nuisance. Every remedy allowed by law or equity against a nuisance, either publicor private, shall be applicable against every such act or omission and may beexercised by any Owner and the Association. Each remedy provided herein shall becumulative and not exclusive.

15.4 Cumulative Remedies. The respective rights and remedies, provided bythese CC&Rs or by law or available in equity, shall be cumulative and the exercise ofany 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 ordifferent failures of the Owners or others to perform or observe any provision ofthese CC&Rs.

15.5 Failure to Enforce Not a Waiver. Failure by the Board, any Owner orany other Person entitled to enforce the Governing Documents to enforce the sameshall in no event be deemed a waiver of the right of such Person or of any otherPerson 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 Unitshall not be deemed a waiver as to any other Unit, nor shall the violation of anyprovision hereof in respect to any Unit or Units affect the applicability orenforceability 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 ofAssessments 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 theOwner in writing at least 10 days in advance either personally or byprepaid first-class or registered mail to the most recent address of theOwner as shown on the Association’s records. The notice shall set forththe date and nature of the violation, the proposed penalty, and theOwner’s right to present evidence in his or her defense, either in writingor in person at the hearing.

b. Hearing. The hearing shall be held in executive session if the Ownerrequests.

c. Notice of Decision. Within 15 days after the Board makes a decision onimposition of any penalties or fines, notice of the decision shall be givento the Owner which shall specify the violation and the penalty imposed.

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15.7 Remedy at Law Inadequate. Remedies at law for violation of theAssociation’s Governing Documents are inadequate and equitable and injunctiverelief may be sought and awarded.

15.8 Right of Action Against Buyer. Failure by an Owner to correct Unitviolations prior to the transfer of title to the Unit shall give the Association the rightto enforce compliance against the buyer by any enforcement mechanism authorizedby these CC&Rs.

15.9 Procedure for Internal Dispute Resolution. If the Association and anOwner are involved in a dispute involving their rights, duties, or liabilities underCalifornia law or the Governing Documents, either the Association or the Owner mayinvoke the following procedure:

a. Written Request. Either party may request in writing that the partiesmeet and confer in an effort to resolve the dispute. The writing shallinclude 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 anddiscuss the same dispute within the past three months and to theAssociation’s knowledge there has been no change in any relevantcircumstances since that prior meeting. In that case, theAssociation may accept or reject the Owner’s request at itsoption.

(2) If the Association initiates the request, the Owner is not obligatedto accept.

b. Association Designee. If the request is accepted, the Association’sBoard of Directors shall designate one or more members of the Board tomeet and confer with the Owner.

c. Meet and Confer. The parties shall meet promptly at a mutuallyconvenient time and place, explain their positions to each other, andconfer in good faith in an effort to resolve the dispute.

d. Written Resolution. If the dispute is resolved, the agreed-uponresolution shall be put in writing and signed by the parties. The Boarddesignee may sign on behalf of the Association unless the resolutionexceeds the scope of authority given to the designee. In that case theresolution shall not be binding until it is approved and signed by theBoard.

e. No Fees. No fee shall be charged to the Owner for participation in thisprocess.

f. Limited Scope. This Section shall not apply to hearings held by theAssociation to consider imposition of discipline against an Owner or torequire that a violation be cured before entry into a Unit. Neither shallthis Section apply to parties proposing alternative dispute resolution

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before filing litigation as discussed in this Article. Exercising theprovisions 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 anOwner and another Owner or the Association over enforcement of theGoverning Documents or California law relating to the Project. ThisSection applies to actions for declaratory or injunctive relief or writrelief, either alone or in conjunction with a money claim within thejurisdiction of small claims court. It does not apply to small claimsactions, assessment disputes, or claims for money damages, only.

b. Request for Resolution. Before filing a lawsuit covered under thisSection, the party seeking litigation shall serve on the other a Requestfor Resolution. The Request for Resolution shall include (i) a briefdescription of the dispute, (ii) a request for either mediation orarbitration, (iii) a notice that the other party must respond within 30days or the request will be deemed rejected, and (iv) if the party beingserved is an Owner, a copy of Civil Code Sections 1369.510 through1369.590. The Request shall be served by personal delivery, first-classmail, express mail, fax, or other means reasonably calculated to providethe person with actual notice of the Request.

c. Attempt to Resolve Dispute. If accepted by the other party, themediation or arbitration shall be completed within 90 days of thereceipt of acceptance by the party seeking litigation, unless extendedby written stipulation of the parties.

d. Costs. The parties shall share the costs of hiring an arbitrator ormediator unless otherwise determined as a result of the arbitration ormediation.

15.11 Judicial Reference. At the request of either party, any litigationbetween the Association or any of its officers, Directors, or agents against each otheror an Owner, or between two Owners, regarding enforcement of the GoverningDocuments or applicable statute shall be subject to and decided by judicialreference, to try any or all of the issues in the action or proceeding, whether of factor of law.

a. Appointment of Referee. Within 30 days after either party demandsthat the dispute be determined by judicial reference, the parties shallattempt to agree to the appointment of a retired judge of the SuperiorCourt 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 toappoint a referee.

b. Discovery. Discovery shall be permitted in the judicial referenceproceeding, subject to any restrictions imposed by the referee.

c. Trial. The trial of the dispute shall commence within 90 days of theappointment of the referee, unless the referee declares an extension of

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time. Hearings shall be continuously conducted and diligentlycompleted and the parties shall require that the referee’s statement ofdecision be reported to the parties within 20 days of completion of thehearings.

d. Fees and Costs. Prior to the rendering of the referee’s decision, allcosts 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 otheraward made by the referee as part of any judgment decision.

e. Entry of Judgment. The referee’s award shall be final and bindingupon the parties. Judgment upon such award may be entered in anycourt having jurisdiction thereof, in accordance with applicable law.

15.12 Attorneys’ Fees. In the event any party initiates any action orproceeding to enforce or interpret the Governing Documents or California lawrelating to the Project, the substantially prevailing party shall be awarded reasonableattorneys’ fees and costs, including reasonable experts’ fees.

ARTICLE 16RIGHT OF ENTRY

16.1 Right to Enter. During reasonable hours and subject to the noticerequirements contained in this Article, the Association’s 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 necessarymaintenance or repairs to the Unit; Exclusive Use Common Area,including the Balcony; or Common Area.

b. Ensure Compliance. To ensure compliance with the GoverningDocuments.

c. Protect property rights. To protect the property rights and welfare ofthe Owners.

d. Cure Violation. To cure a violation of the Governing Documents.

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 thetime of the entry.

a. Service. Notice may be personally delivered or mailed to the Residentof the Unit and personally delivered or mailed to the Owner’s address ofrecord, if different from the Unit address, unless the Owner hasspecified 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 entryshall only be given after notice and hearing and the Owner’s failure tocure within a given time frame as required under these CC&Rs.

16.3 Avoid Unreasonable Interference. The right of entry shall be exercisedin such a manner as to avoid any unreasonable or unnecessary interference with thepossession, use and enjoyment of the Owner or Resident of such Unit.

16.4 Emergency Entry. In the event of an emergency, the Board shall makea good faith effort to give an opportunity to cure and notice of entry. However, if itis not feasible to allow time for cure or to seek permission for entry, or if permissionis refused, the Board or its authorized representative may enter the Unit and shallnot be subject to liability to the Owner or Resident and no trespass or other wrongfulact 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 reasonauthorized in these CC&Rs and the Resident or Owner refuses to allow entry, theAssociation shall have the right to assess the Owner for all expenses, includingreasonable attorneys’ fees (regardless of whether legal proceedings are instituted),incurred by the Association arising from the resident’s refusal to allow entry. Suchfees and expenses shall become a Special Assessment against the Owner and shall befully enforceable by all means provided for in these CC&Rs including lien andforeclosure.

16.6 Damage by Association. Any damage to the Common Area or ExclusiveUse Common Area caused by the Association shall be promptly repaired by theAssociation. However, if it is necessary for the Association to damage or destroyproperty 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 suchdamage, provided the Association shall repair the damage if the emergency did notoriginate in the Unit.

16.7 Owner Failure to Maintain. In the event any Owner fails to maintain hisor her Unit or Exclusive Use Common Areas:

a. Notice. The Board shall give written notice to such Owner, stating thework, maintenance or repair which the Board finds to be required anddirecting that the same be carried out within 20 days from the giving ofsuch notice or such longer period as the Board believes may bereasonably required for the work.

b. Board Authorized to Repair. In the event the Owner fails to carry outsuch maintenance or repairs within the period specified by the notice orwithin such longer period as may be reasonably required for its promptcompletion, the Board may serve notice of entry as provided for in thisArticle, cause such work to be done, and assess all related costs to suchOwner as a Special Assessment.

c. Waiver of Liability. Neither the Association nor its Officers, Directors,Committee members, employees or agents shall be liable for anydamage to person or property arising from the inspection, maintenanceor repair of a Unit or its Exclusive Use Common Areas unless the loss or

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damage was caused by the negligence or willful misconduct of theAssociation’s Officers, Directors, Committee members, employees oragents.

ARTICLE 17PROTECTION 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 anOwner (or his predecessor in interest), the lien of which mortgage or deed of trust issuperior to all other monetary encumbrances except real property taxes andAssessments. 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 andthe term “First Mortgagee” shall refer to a beneficiary (or its assignee) under a deedof trust with priority over all other Mortgagees and deeds of trust.

17.2 Mortgagees’ Previously Existing Rights. To the extent any provision inthese CC&Rs restricts or invalidates any rights of a Mortgagee available under theprior CC&Rs with respect to a Mortgage recorded against a Unit on the date ofrecordation of these CC&Rs, the restriction contained in such provision of theseCC&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 beentitled to receive any notice or vote on any issue provided for in these CC&Rs unlessit has delivered to the Board a written notice stating that it holds a first mortgageencumbering a Condominium within the Project and requesting such notice or right tovote. Any such notice and request delivered to the Board by a Mortgagee shallremain effective for so long as the facts set forth in such notice or request remainunchanged.

17.4 Written Notification to First Mortgagees. A First Mortgagee, uponrequest, is entitled to written notice from the Board of any default in theperformance of an individual Unit mortgagor of any obligation under these CC&Rs andthe Bylaws which is not cured within 60 days. It shall be the responsibility of eachOwner of a Unit to notify the Association within 30 days of the close of his escrow topurchase a Condominium of the name and address of the holder of his or her firstMortgage on the particular Unit.

17.5 Exemption from Right of First Refusal. Any First Mortgagee whichcomes into possession of a Unit pursuant to the remedies provided in the Mortgage orforeclosure of the Mortgage shall be exempt from any right of first refusal.

17.6 Subordination of Assessment Lien to Mortgages. Any holder of a firstmortgage or any third party purchaser who comes into possession of the Unit pursuantto the remedies provided in the mortgage or foreclosure of the Mortgage shall takethe property free of any claim for unpaid Assessments or charges against themortgaged Unit which accrue prior to the time such Person comes takes title to theUnit. The lien for Assessments provided for in these CC&Rs shall be subordinate tothe 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 havebecome due and payable prior to a sale or transfer of such property pursuant to adecree of foreclosure or trustee’s 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 lienof any such subsequent assessment.

17.7 Leasing of Unit. The Owner of any Unit being leased or rented shalldeliver to the Board within five days of such rental or lease an acknowledgment inwriting signed by the Unit Owner and the Tenant confirming that such Tenant hasreceived the CC&Rs and the Bylaws, and the Tenant acknowledges being bound bythem.

17.8 Prior Approval of First Mortgagees. Unless at least 67% of the FirstMortgagees on individual Units have given their prior written approval, or failed todeliver to the Association either an approval or rejection in writing within 30 daysafter the Association mails the First Mortgagee a request for approval by first classmail, return receipt requested, neither the Association nor the Owners shall:

a. By act or omission seek to abandon or terminate the condominiumregime;

b. Change the pro rata interest or obligations of any Unit for the purposeof: (i) levying assessments or charges or allocating distribution of hazardinsurance proceeds or condemnation awards, or (ii) determining the prorata share of ownership of each Unit in the Common Area and commonelements;

c. By act or omission change, waive or abandon any material scheme ofregulation, or enforcement thereof, pertaining to the architecturaldesign or the exterior appearance of Units, the exterior maintenance ofthe Units, the maintenance of driveways, or the upkeep of landscapingwithin the Project;

d. Partition or subdivide any Unit;

e. By act or omission seek to abandon, partition, subdivide, encumber,release, hypothecate, sell or transfer the Common Area. The grantingof easements for public utilities or for other public purposes consistentwith the intended use of the Common Area by the Project shall not bedeemed a transfer within the meaning of this clause;

f. Fail to maintain fire and extended coverage on insurable Projectcommon property and Units on a current replacement cost basis in anamount not less than 100% of the insurable value (based on currentreplacement costs);

g. Use hazard insurance proceeds for losses to any Project commonproperty for other than repair, replacement or reconstruction of suchimprovements;

h. Materially amend the CC&Rs or Bylaws of the Association governing thefollowing subjects:

(1) The percentage interest of each Owner in the Common Areas;

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(2) The fundamental purpose for which the Project has been created;

(3) Voting rights;

(4) Assessments, assessment liens and subordination thereof;

(5) The reserve for repair and replacement of common elements;

(6) Property maintenance obligations;

(7) Casualty and liability insurance;

(8) Reconstruction in the event of damage or destruction;

(9) Rights to use the common elements; or

(10) Annexation of additional real property.

17.9 Examination of Books and Records. Each First Mortgagee shall have theright to examine the books and records of the Association.

17.10 Taxes, Assessments and Charges. All taxes, charges and Assessmentswhich may become liens prior to First Mortgages under local law shall relate only tothe individual Units and not to the Project as a whole. First Mortgagees of Units mayjointly and singly pay taxes or other charges which are in default and which may orhave become a charge against the common property, and may pay overdue premiumson hazard insurance policies or secure new hazard insurance coverage on the lapse ofa policy for such property, and first Mortgagees making such payments shall be owedimmediate reimbursement therefor from the Association.

17.11 Reserves for Replacement. An adequate reserve fund for replacementof the Common Area facilities must be established by the Association and shall befunded by regular monthly Assessments, rather than by special Assessments.

17.12 No Priority Over Rights of First Mortgagees. No provision herein shallgive a Condominium Owner or any other party priority over any rights of firstMortgagees of Condominiums pursuant to their mortgages in the case of a distributionto Condominium Owners of insurance proceeds or condemnation awards for losses toor a taking of Condominiums and/or the Common Area. Such first Mortgagees shall beentitled to timely written notice of any such damage or destruction, if such loss ortaking 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 subjectmatter of any condemnation or eminent domain proceeding, no provision herein shallentitle the Owner of a Condominium or any other party, to priority over a firstMortgagee of a Condominium with respect to any distribution to such Condominium ofthe proceeds of any award or settlement. Such first Mortgagees shall be entitled totimely 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, uponsuch Mortgagee’s request, of all meetings of the Association. Each such

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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 ormore of the Condominiums by foreclosure.

b. The Association shall give written notice to any first Mortgagee of anymaterial amendment to these CC&Rs and/or the Association Bylaws;

c. The Association shall deliver to each such first Mortgagee, upon suchMortgagee’s request, a copy of the Association’s annual financialstatement.

17.14 Conflict. If there is any conflict between the provisions of this Articleand any other provisions in these CC&Rs or the Bylaws, the language contained in thisArticle shall control.

17.15 Modifying or Amending. Any amendment to this Article shall requirethe consent of beneficiaries holding 67% of the first trust deeds which may be then ofrecord as valid encumbrances against the Project or any portion thereof. Saidamendment to these CC&Rs shall be effective when recorded in the office of theCounty Recorder.

ARTICLE 18LIMITATIONS 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, ordamage to persons or property for any act or omission if the act or omission wasperformed in good faith, was within the scope of the person’s duties for theAssociation, if it was not self-dealing, and if it did not constitute intentionalmisconduct or gross negligence.

18.2 Association Not a Security Provider. The Association may, from timeto time, provide measures of security at the Project. However, the Association is nota 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. TheAssociation shall not be held liable for any loss or damage by reason of failure toprovide adequate security or ineffectiveness of security measures undertaken.

18.3 Duty to Defend. The Association shall indemnify and defend and shalladvance reasonable attorneys’ fees and costs as follows to its Officers, Directors,Committee members, and employees (for purposes of this Section, “Agents”) againstall expenses and liabilities reasonably incurred by Agents in connection with anyproceeding (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 faithand in a manner the Agent reasonably believed to be in the best interests of theAssociation and, in the case of a criminal proceeding, had no reasonable cause tobelieve the Agent’s conduct was unlawful.

A. Association v. Agent. In any action against the agent brought by or inthe right of the Association to procure a judgment in its favor, theAssociation shall indemnify the Agent if the Agent acted in good faith, in

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a manner which the Agent believed to be in the best interests of thecorporation, and with such care, including reasonable inquiry, as anordinarily prudent person in a like position would use under similarcircumstances. However, for any such actions brought by theAssociation, the Association may recover its attorneys’ fees and costsfrom, and shall not be liable for any of the following judgments or otherliabilities.

(1) Any claim, issue or matter as to which the Agent is adjudged tobe liable to the Association in the performance of his or her dutyto the Association, except to the extent that the courtdetermines that the Agent is entitled to indemnity;

(2) Amounts paid in settling or otherwise disposing of a threatened orpending action, with or without court approval; or

(3) Expenses incurred in defending a threatened or pending actionwhich is settled or otherwise disposed of without court approval.

B. Approval of Indemnification. If an agent of a corporation has beensuccessful on the merits in defense of any proceeding or claim, issue ormatter presented in the proceeding, the agent shall be indemnifiedagainst expenses actually and reasonably incurred. In other situations,the Association may indemnify Agents only if authorized in the specificcase, upon a determination that indemnification of the Agent is properin the circumstances because the Agent has met the applicable standardof conduct set forth in this Section, by:

(1) A majority vote of a quorum consisting of Directors who are notparties to such proceeding;

(2) Approval of the a majority of a quorum of the Owners, with theAgent not being entitled to vote; or

(3) The court in which the proceeding is or was pending.

C. Insurance. This Section does not affect the Association’s right andobligation to purchase directors and officers insurance and generalliability insurance providing coverage to Agents. This Section shall onlyapply to the extent insurance coverage is not available under any suchpolicies.

18.4 Waiver by Members. If it will not void or impair the Association’sinsurance, each Owner hereby waives and releases all claims against the Association,its employees, Directors, Officers, Committee members, and agents, and all otherOwners with respect to any loss covered by any insurance policy maintained by theAssociation, to the extent of insurance proceeds actually received by the Owner orapplied to the Owner’s benefit. This applies whether or not the claim was caused bythe negligence of, or breach of any agreement by, said persons, but only to theextent 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 itsOfficers, Directors, Committee members, employees or agents shall be liable for anyloss or damage suffered by reason of theft of or damage to any article or thing whichis placed or stored in or on any portion of the Project.

18.6 Personal Injury or Property Damage Sustained Within a Unit. Thefollowing shall apply if any Person sustains personal injury or property damage withina Unit or on its attached Balcony and the injury or damage results in a claim againstthe Association or any of its Officers, Directors, Committee members, Owners, agentsor employees. The owner of the Unit or Balcony where the injury or damage occurredshall (i) fully indemnify and hold harmless the Association, Officer, Director,Committee member, Owner, agent or employee against whom such claim or suit isbrought and (ii) defend at his own cost and expense any resulting litigation againstsaid parties; provided that there shall be no obligation to defend or indemnify anyparty whose gross negligence or willful misconduct was the sole cause of the injury ordamage. 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 19DAMAGE/DESTRUCTION TO IMPROVEMENTS

19.1 Common Area Damage. In the event the Common Area is partially ortotally 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 inCalifornia and insured, which bids shall set forth in detail the workrequired to reconstruct the damaged or destroyed portions of theCommon Area to substantially the same condition as they existed priorto such damage and the itemized cost of such work (subject to anyincreased building standards then in effect), and (ii) determine theamount of all insurance proceeds and reserves available to theAssociation for the purpose of effecting such reconstruction.

b. Automatic Reconstruction. If the cost to reconstruct the CommonAreas (minus the value of any insurance proceeds due the Association) isless than or equal to three times the amount of the total annualoperating budget of the Association for the prior fiscal year, the Board,without a vote of the membership, shall cause the Common Area to bereconstructed to substantially the same condition as existed prior tosuch damage (subject to any increased building standards then ineffect), unless changes recommended by the Board have been approvedin writing by 75% of the Owners and 75% of first mortgage holders. Suchreconstruction 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 againstthe membership to provide the funds necessary for such reconstructionand/or for repayment of any monies borrowed by the Association forsuch reconstruction.

c. Membership Approval. If the Board determines that the cost toreconstruct the Common Areas (minus the value of any insurance

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proceeds due the Association) is an amount greater than three times thetotal annual operating budget of the Association for the prior year, thenthe Common Areas shall be reconstructed unless 75% of the membership,by ballot or at a special meeting called for such purpose, vote not toreconstruct the damaged or destroyed Common Areas.

19.2 Decision Not to Rebuild. In the event the membership votes not torebuild the Common Areas:

a. Certificate Not to Rebuild. Within 30 days after such vote, the Boardshall cause to be executed, acknowledged and recorded in the Office ofthe County Recorder a certificate setting forth the Association’sintention not to reconstruct the Common Area;

b. Right of Partition Revived. Immediately upon the recordation of sucha certificate, the right of partition suspended by these CC&Rs shall berevived;

c. Revised Subdivision Map. The Board shall, as soon as practical, causeto be prepared, filed and/or recorded any revised subdivision map,Condominium Plan or other documents, reports, schedules or exhibitsnecessary to show the changed or altered status of the Project,including, without limitation, the elimination of all or part of one ormore of the Units as a result of such damage;

d. Sale of Project. A membership vote not to rebuild as set forth abovemay also include approval to sell the entire Project. On such approval,each Owner hereby appoints the Association as attorney-in-fact andirrevocably grants to the Association, acting through its Board, fullpower in the name and stead of such Owner to sell the entire Project forthe benefit of all Owners. This power of attorney shall be binding on allOwners and shall be exercised only after recordation of a power ofattorney, which shall be conclusive evidence in favor of any Personrelying thereon in good faith; and

e. Distribution of Insurance Proceeds. If the entire Project, including allUnits and all Common Area, is sold, the Board shall distribute theinsurance proceeds available for such reconstruction together with anyother sums otherwise available to the Association for such purpose tothe Owners, less costs for clearing the debris, collecting insuranceproceeds, and any other expenses necessary as a result of the damage ordestruction, proportionately according to an appraised fair market valueof the Condominiums (as of a date immediately prior to destruction orcondemnation). Such payment shall be subject to rights of Mortgageesholding Mortgages encumbering Units and all unpaid Assessmentstogether with any interest charges. Appraisers hired by the Board toappraise the Condominiums will be paid by the Association. If Unitsremain after the destruction and decision not to rebuild Common Area,then the portion of proceeds attributable to Units which are destroyedand not rebuilt, if any, shall be distributed in accordance with theabove. The remainder of the insurance proceeds shall be deposited inthe Association’s reserves.

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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 bea member of the Association, and the interest in the Common Area appurtenant tothat Unit shall automatically become vested in the Owners of the remaining Units inproportion to their respective interests in the Common Area. In the event of theelimination of a part of a Unit, the Common Area interest appurtenant to that Unitshall 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 shallautomatically be adjusted accordingly. The Owner of an eliminated Unit shallquitclaim to the remaining Owners his or her interest in the Common Area asappropriate under this Section.

19.4 Duties of Board During Reconstruction. If reconstruction isundertaken, the Board shall (i) enter into a written contract with a contractor who islicensed and insured for such repair, reconstruction and restoration; (ii) disburseinsurance proceeds available for the work along with funds collected by reason ofAssessments in appropriate progress payments; and (iii) take all steps necessary toensure the commencement and completion of such repair, reconstruction andrestoration in a lawful, workmanlike manner at the earliest possible date.

19.5 Labor and Materials. In determining whether the plans for areconstructed Building are in substantial conformance with the Condominium Plan,the Board may take into consideration the availability and expense of the labor andmaterials in the original construction of the Building. If such labor or material is notavailable or is prohibitively expensive at the time of reconstruction, the Board maypermit the substitution of other labor or material as it deems proper.

19.6 Special Assessment for Reconstruction. In the event the proceeds ofinsurance obtained by the Association are paid to any Mortgagee of a Unit, and byreason of such payment the insurance proceeds are not made available to theAssociation as trustee or otherwise to effect any repair, reconstruction or restorationof any damage and/or destruction to all or any portion of the Project as provided inthese CC&Rs, the amount of such proceeds not made available shall be assessed andcharged 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 CondominiumPlan to reflect changes made to the Project pursuant to this Article. If so, theamendment shall be executed and acknowledged in compliance with California CivilCode Section 1351(e) or any similar statute then in effect, and the Association and/orthe Owners and holders of security interests, as required, shall execute any otherdocuments and take other actions required to make the amendment effective.

ARTICLE 20CONDEMNATION

20.1 Notice. Promptly upon learning of any potential condemnation or saleby eminent domain, the Board shall notify all Owners and first mortgagees who havefiled a written request for notice.

20.2 Common Action. In the event that an action in eminent domain isbrought to condemn all or any portion of the Common Areas, the Association shallrepresent 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 intothe Association’s reserves or for distribution to the Owners.

20.3 Condemnation Awards. In the event that an action in eminent domainis brought to condemn all or any portion of one or more Units the award made forsuch taking shall be payable to the respective owners of the Units subject to: (i) therights of Mortgagees holding Mortgages covering such Units and (ii) all unpaidAssessments of each Owner taken together with interest charges.

a. Apportionment per Condemnation Award. If a condemnationjudgment apportions the award among the Owners, the Board shalldistribute any amount remaining after deductions according to theterms of the judgment allocation.

b. Other Apportionments. If the property is sold under threat ofcondemnation (or if the judgment of condemnation fails to apportionthe award), the Board will distribute the award proportionately to eachUnit 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 paidby the Association.

20.4 Substantial Taking. If there is a taking of more than 50% of the Projectand 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 apartition action under California Civil Code Section 1359 or any successor statute. The proceeds from the partition sale, less any costs or fees incurred, shall bedistributed to the Owners and their respective mortgagees in accordance with theirCommon Area interest, where the Condominiums are not valued separately by thecondemning authority or by the court.

20.5 Revision of Documents. In the event of any condemnation of a part ofthe Project, the Board shall, as soon as practical, cause to be prepared, filed and/orrecorded 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 Owneror a member of the Association, and the Common Area interest appurtenant to thatUnit shall automatically become vested in the remaining Owners in proportion totheir respective Common Area interests.

20.7 Change of Condominium Plan. The Board may amend the CondominiumPlan to reflect changes made to the Project pursuant to this Article. If so, allrelevant Owners and security interest holders must execute and acknowledge theamendment, in compliance with California Civil Code Section 1351(e) or any similarstatute then in effect, and execute any other documents and take other actionsrequired to make the amendment effective.

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ARTICLE 21MISCELLANEOUS

21.1 Notice of Airport in Vicinity. This property is presently located in thevicinity of an airport, within what is known as an airport influence area. For thatreason, the property may be subject to some of the annoyances of inconveniencesassociated with proximity to airport operations (for example: noise, vibration, orodors). Individual sensitivities to those annoyances can vary from person to person. You may wish to consider what airport annoyances, if any, are associated with theproperty before you complete your purchase and determine whether they areacceptable to you.

21.2 Amendment.

a. Amendment by Owners. These CC&Rs may be amended by the vote orwritten consent of Owners comprising at least a majority of the Ownersor as provided for in Section 1356 of the Civil Code or any successorstatutes, provided that the percentage of Owners necessary to amend aspecific provision shall not be less than the percentage of affirmativevotes prescribed for action to be taken under that provision.

(1) Any amendment enacted in compliance with this provision shallbecome effective when recorded with the Office of the CountyRecorder.

(2) Any Owner vote on amendments to the CC&Rs shall be conductedby secret written ballot, using the procedures for ballots, proxies,inspectors of election, tabulating the vote, and storage andavailability of ballots set forth in the Bylaws.

b. Amendment to Conform to Statute. If at any time a provision in theseCC&Rs contradicts current law according to a written opinion of theAssociation’s legal counsel, the Board of Directors will have theauthority, on the unanimous approval of the Directors and withoutapproval of the Owners, to amend that provision, but only to the extentnecessary to render the provision compliant with applicable law.

21.3 Term of CC&Rs. These CC&Rs shall continue in full force and effect fora term of 60 years from the date of their recordation, after which time they shall beautomatically extended for successive periods of 20 years unless within six monthsprior to the expiration of the initial term or any 20-year extension period a writtenagreement executed and acknowledged by at least 75% of the Owners is placed onrecord in the office of the County Recorder terminating the effectiveness of theseCC&Rs.

21.4 Conflict. If there is any conflict between the Governing Documents, theorder 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 partitionof the Common Area except as provided by Section 1359 of the California Civil Codeas 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, whethernow in existence or created at any time in the future, the benefit of any homesteador exemption laws of the State of California now in effect, or in effect from time totime hereafter.

21.7 Restrictive Agreements. No Owner shall execute or file for record anyinstrument which imposes a restriction upon the sale, leasing or occupancy of theOwner’s Unit on the basis of race, color, creed, sex, familial status, or any otherdiscriminatory factor prohibited by California or federal law for the providing ofhousing. Failure to enforce this provision shall not constitute a waiver of the right toenforce this provision in other situations.

21.8 Attorneys’ Fees. Any reasonable attorneys’ fees and costs incurred bythe Association in the enforcement of the Governing Documents against an Owner, orto determine the rights or duties of the Owner under the Governing Documents, maybe levied against that Owner by the Board as a Special Assessment which may becollected in any manner provided for by these CC&Rs or by law, including withoutlimitation lien and foreclosure.

21.9 Notices. Any communication or notice of any kind permitted orrequired herein may be delivered as provided in these CC&Rs and shall be in writingand 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 suchother address as the Owner may designate inwriting to the Association.

To the Association: To the address of the manager or the BoardPresident.

All notices or demands to be served by mail shall be by first-class mail with postageprepaid. Service shall be deemed to be completed three business days after suchmailing.

21.10 Headings. The headings contained in these CC&Rs are solely for theconvenience of reference and are not a part of and are not intended to govern, limitor aid in the construction of any term or provision of these CC&Rs.

21.11 Liberal Construction. The provisions of the Governing Documents shallbe liberally construed to effectuate their purpose of creating a uniform plan for theuse, operation and maintenance of the Project.

21.12 Number and Gender. Whenever the context so requires, the singularnumber includes the plural, the plural includes the singular, the masculine genderincludes the feminine and/or neuter and the neuter gender includes the masculineand/or feminine.

21.13 Severability. The provisions of these CC&Rs and any other GoverningDocument shall be deemed independent and severable, and the invalidity or partialinvalidity or unenforceability of any one provision shall not affect the validity orenforceability of any other provision.

59CC&Rs002.wpd

21.14 No Public Rights. Nothing contained in these CC&Rs shall be deemed tobe a gift or dedication of all or any portion of the Project to the general public or forany public use or purpose whatsoever.

21.15 Successor Association. In the event the Association as a corporateentity is dissolved, a nonprofit, unincorporated association shall without furtheraction automatically succeed to all the rights and duties of the corporation. Theaffairs of the unincorporated association shall continue to be governed by theseCC&Rs, the Bylaws, and the Rules as well as any applicable law.

CERTIFICATION

WE CERTIFY this day of , 201__ that this RestatedDeclaration of Covenants, Conditions and Restrictions has been duly approved andadopted 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

60CC&Rs002.wpd

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/theyexecuted the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) onthe instrument the person(s), or the entity upon behalf of which the person(s) acted, executed theinstrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that theforegoing 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 theofficer) , notary public, personally appeared_________________________ ________________________ who proved to me on the basis ofsatisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument andacknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), andthat by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of whichthe person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that theforegoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature:______________________________________

[S E A L]

Exhibit A - Page 1CC&Rs002.wpd

EXHIBIT AAllocation Schedule for Assessments

Legal % Share

Address Unit Description per Dues

8650 Belford 101 B101 0.8377%

8650 Belford 102 B102 0.9552%

8650 Belford 103 B103 0.9493%

8650 Belford 104 B104 0.9588%

8650 Belford 105 B105 0.8570%

8650 Belford 106 B106 0.8570%

8650 Belford 107 B107 0.9403%

8650 Belford 108 B108 0.8704%

8650 Belford 109 B109 0.9501%

8650 Belford 110 B110 0.9635%

8650 Belford 111 B111 0.9403%

8650 Belford 112 B112 0.8715%

8650 Belford 113 B113 0.8715%

8650 Belford 114 B114 0.9403%

8650 Belford 115 B115 0.9635%

8650 Belford 116 B116 0.9513%

8650 Belford 117 B117 0.8746%

8650 Belford 118 B118 0.9415%

8650 Belford 119 B119 1.0939%

8650 Belford 120 B120 1.0923%

8650 Belford 121 B121 0.8322%

8650 Belford 122 B122 0.8322%

8650 Belford 123 B123 0.8393%

8650 Belford 124 B124 0.8440%

8650 Belford 125 B125 0.8440%

8650 Belford 126 B126 0.8393%

8650 Belford 200 B200 0.9989%

8650 Belford 201 B201 1.0366%

8650 Belford 202 B202 0.9556%

8650 Belford 203 B203 0.9493%

8650 Belford 204 B204 0.9588%

8650 Belford 205 B205 0.8570%

8650 Belford 206 B206 0.8570%

8650 Belford 207 B207 0.9403%

8650 Belford 208 B208 0.8704%

Exhibit A - Page 2CC&Rs002.wpd

Legal % Share

Address Unit Description per Dues

8650 Belford 209 B209 0.9501%

8650 Belford 210 B210 0.9635%

8650 Belford 211 B211 0.9403%

8650 Belford 212 B212 0.8715%

8650 Belford 213 B213 0.8715%

8650 Belford 214 B214 0.9403%

8650 Belford 215 B215 0.9635%

8650 Belford 216 B216 0.9513%

8650 Belford 217 B217 0.8711%

8650 Belford 218 B218 0.9415%

8650 Belford 219 B219 1.0939%

8650 Belford 220 B220 1.0923%

8650 Belford 221 B221 1.0366%

8650 Belford 222 B222 1.0366%

8650 Belford 223 B223 1.0807%

8650 Belford 224 B224 1.0900%

8650 Belford 225 B225 1.0900%

8650 Belford 226 B226 1.0807%

8710 Belford 101 B101 0.8377%

8710 Belford 102 B102 0.9552%

8710 Belford 103 B103 0.9493%

8710 Belford 104 B104 0.9588%

8710 Belford 105 B105 0.8570%

8710 Belford 106 B106 0.8570%

8710 Belford 107 B107 0.9403%

8710 Belford 108 B108 0.8704%

8710 Belford 109 B109 0.9501%

8710 Belford 110 B110 0.9635%

8710 Belford 111 B111 0.9403%

8710 Belford 112 B112 0.8715%

8710 Belford 113 B113 0.8715%

8710 Belford 114 B114 0.9403%

8710 Belford 115 B115 0.9635%

8710 Belford 116 B116 0.9513%

8710 Belford 117 B117 0.8746%

8710 Belford 118 B118 0.9415%

8710 Belford 119 B119 1.0939%

8710 Belford 120 B120 1.0923%

8710 Belford 121 B121 0.8322%

8710 Belford 122 B122 0.8322%

8710 Belford 123 B123 0.8393%

Exhibit A - Page 3CC&Rs002.wpd

Legal % Share

Address Unit Description per Dues

8710 Belford 124 B124 0.8440%

8710 Belford 125 B125 0.8440%

8710 Belford 126 B126 0.8393%

8710 Belford 200 B200 0.9989%

8710 Belford 201 B201 1.0366%

8710 Belford 202 B202 0.9556%

8710 Belford 203 B203 0.9493%

8710 Belford 204 B204 0.9588%

8710 Belford 205 B205 0.8570%

8710 Belford 206 B206 0.8570%

8710 Belford 207 B207 0.9403%

8710 Belford 208 B208 0.8704%

8710 Belford 209 B209 0.9501%

8710 Belford 210 B210 0.9635%

8710 Belford 211 B211 0.9403%

8710 Belford 212 B212 0.8715%

8710 Belford 213 B213 0.8715%

8710 Belford 214 B214 0.9403%

8710 Belford 215 B215 0.9635%

8710 Belford 216 B216 0.9513%

8710 Belford 217 B217 0.8711%

8710 Belford 218 B218 0.9415%

8710 Belford 219 B219 1.0939%

8710 Belford 220 B220 1.0923%

8710 Belford 221 B221 1.0366%

8710 Belford 222 B222 1.0366%

8710 Belford 223 B223 1.0807%

8710 Belford 224 B224 1.0900%

8710 Belford 225 B225 1.0900%

8710 Belford 226 B226 1.0807%

100.0000%

Exhibit B - Page 1

EXHIBIT BMaintenance and Repairs

UNIT WALLS, CEILINGS AND FLOORS

Owner Association

1. Interior wall surfaces and coverings - paint, wallpaper,paneling, mirrors, etc.

2. Drywall and plaster forming all Unit interior and perimeterwalls - taping, patching, repair and replacement

3. Interior non-perimeter walls (walls between rooms in theUnit) - non-load bearing walls and partitions

4. Interior non-perimeter walls (walls between rooms in theUnit) - bearing walls

5. Perimeter walls surrounding the Unit, except for drywalland plaster as defined above

6. Ceiling surfaces �

7. Floor coverings - carpeting, hardwood, tile, marble,granite, vinyl, etc.

8. Unfinished slab and/or sub-floors �

9. Nail popping in flooring and/or subfloors - cure toeliminate noise in neighboring Units

WINDOWS AND DOORS

Owner Association

1. Window glass panes - maintenance, repair andreplacement; cleaning (both sides)

2. Window mullions, screens, hardware, weatherstripping,waterproofing, etc. - maintenance, repair and replacement

3. Window frames and door frames - maintenance, repair andreplacement

4. Window frames and door frames - painting - exterior �

5. Entry door - interior finish �

6. Entry door - hardware, locks, knobs, hinges,weatherstripping, frames, thresholds, door casings,caulking, sealants, door guides, etc. - maintenance, repairand replacement

Exhibit B - Page 2

Owner Association

7. Sliding door – frame, threshold, slider, door casing,hardware, rollers, weatherstripping, etc.

8. Sliding door – glass panes �

9. Interior doors and hardware (bedrooms, closets,bathrooms, etc.)

ELECTRICAL, TELEPHONE, CABLE

Owner Association

1. Electrical panel and breakers for Unit located inside Unit �

2. Electrical wiring in Unit’s perimeter walls �

3. Light switches, electrical outlets and wall plates inside Unit �

4. Light fixtures - in Unit �

5. Light fixtures - on Balconies, walkways, and CommonAreas

6. Telephone lines, cable television, computer lines, DSLcables, etc. servicing a single Unit

WATER AND UTILITY LINES

Owner Association

1. Water lines feeding into one Unit, located in walls �

2. Sewer lines, drain lines and water lines between one Unitand a common line, wherever located – keep lines open andunobstructed; maintain, repair and replace

3. Sewer lines, drain lines and water lines servicing two Units- keep lines open and unobstructed; maintain, repair andreplace (Owners of the two Units served by the line shareresponsibility)

4. Utility lines servicing more than one Unit, including water,irrigation, fire sprinkler, and common entry systemtelephone lines

5. Doorbells and intercoms hooked up to just one Unit �

6. Hose bibs, faucets and spigots �

7. Pressure regulators serving common lines �

KITCHEN

Owner Association

1. Garbage disposals and clogs �

2. Appliances (dishwasher, refrigerator, oven, stove, rangehood, etc.)

Exhibit B - Page 3

Owner Association

3. Cabinets and counter tops �

4. All plumbing equipment and fixtures, including sinks andfaucets

BATHROOMS

Owner Association

1. Plumbing fixtures, including tubs, showers, sinks, faucets,shower pans, toilets, tank mechanisms, and wax rings

2. Tub and shower valves, drain lines, and angle stops whichexclusively service the Unit or which are located inside theUnit

3. Vanities, cabinets, counter tops �

4. Heater and fan �

5. Common area bathrooms - cleaning, maintenance, repairsand replacement

BALCONIES, ROOF DECKSWALKWAYS AND ENTRY AREAS

Owner Association

1. Balconies, roof decks, porches and walkways -waterproofing

2. Balconies - clean and maintain; clear debris from drainagedevices

3. Roof deck surfaces - clean and maintain; clear debris fromdrainage devices

4. Walkway surfaces - clean and maintain �

5. Balcony wall, fence, or gate - surface of the side facing theUnit - paint and maintain interior surface

6. Roof deck - paint and maintain interior surface �

7. Roof deck, Balcony wall, fence, gate - repairs andreplacement (unless damaged by improper ownermaintenance)

8. Roof deck, Balcony wall, fence, gate - surface of the sidefacing out - paint and maintain

9. Landscaping within roof deck, Balcony �

10. Light bulbs - roof deck, Balcony, porch, walkway �

11. Roof deck or Balcony support structure - repair or replace �

Exhibit B - Page 4

THE BUILDING EXTERIOR

Owner Association

1. Address numbers and address lights �

2. Awnings not installed by owner �

3. Foundations and slabs �

Owner Association

4. Paint - walls �

5. Exterior walls (including stucco) and roofs �

6. Rain gutters �

MECHANICAL AND OTHER EQUIPMENT

Owner Association

1. Heating and air conditioner equipment, ducts, grills, drippans, heat exchangers, valves, compressors, controlequipment, thermostats, etc. servicing only one Unit

2. Air conditioner pad servicing only one Unit �

3. Hot water heater servicing only one Unit �

4. Chiller servicing only one Unit �

5. Smoke alarms inside Unit �

6. Heaters, air conditioners, chillers, etc. servicing thecommon area or multiple Units

MISCELLANEOUS

Owner Association

1. Garage and parking spaces - unfinished flooring slab,including painting parking lines

2. Insects, rodents, or wood-destroying pests or organisms -maintenance and repair of Owner’s personal property andUnit as required to control infestation or damage

3. Insects, rodents, or wood-destroying pests or organisms -treat and repair Common Area infestation or damage

4. Insects, rodents, or wood-destroying pests or organisms - all costs associated with obtaining a termite clearancecertificate sought by Owner, including maintenance andrepair of the Unit, Exclusive Use Common Area, or CommonArea

5. Reception - TV, satellite, cable, audio, Internet, etc. �

7. Dryer vents for dryers in Unit- maintenance and cleaning �

9. Trash removal �

Exhibit B - Page 5

Owner Association

10. Storage lockers - maintain, repair and replace �

11. Storage lockers - exterior paint �

12. Common area hallways, staircases, landings servicingmultiple Units

13. Pools �

14. Gym and Association-owned gym equipment �

15. Recreation room �

16. Laundry rooms �

17. Mailbox for Unit - repair/replace �

18. Mailbox for Unit - lock and key �

19. Any other portion of the Common Area servicing more thanone Unit