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SUBDIVI S lON IMPROVEMENT AGREE}'TEN?
?HIs ACREEIGIfr r s made 8nd cnt.r'r'o.l , nt o
,4,,t;rrst, iq94, betrreen David Hicl:s an'l'-i'r'nie
,i" r.,..qpr ot'coutf,rY c(-fiMTS.cl0]l[Ps (r] r;AFtlrllr
-/,'r't l
lt
rhis -d-/'day of
tli t:ks, (Clwner) , and
CClIIIITY, COI,OF.ADO,
r I ? N E 8 8 E ? II:
rHEREAS, '1wI)Fr ) s t ltt: 'wner of cet ta j n rea 1 prcpert;' located
1n,'ali,ri'l..,tinL'v'rC')ir)!ad')rnroreFarLicrrlarly.descrtbedinthe
f :.r'r;1 p'lat. fot t'rince Cree'< i'sLates' which Is ftled on even date
lrcr...f ancl I n" in...t rP?-ion 'rf which is set f orth tn Exhlblt A
oiio,rrrc,t lrcroto and ma,-le a FarL hereof by referehce (subdlvlclon);
al!'1
III{EREAS, as a concliLtott of approval of the Final Plat and as
Ieqrlil'odb.y't-he}awsofthesLateofColorado,theownerwlshesto
'-.i.,: cr int.o .-hrs Sut\d.i visiotl Ihprovements Agreement wlth the count,y,
al"l
rHEREAS,thecount},hasrequlredandtheovnerhasagreedto
p.."ii"-o"."iiii.ri coliareral sufficient in the Judgment.of the
rliurrt.!'Lc'make icasonable provision for completion of cert'aln
p,uhiicilnprcvemcntsrequirecjtobeinstalledintheSubdlvlslonas
set'torthinFesolutionNo.g4-063,recordedintheofflceofthe
Cierl: anO p.eccidei of Garfield County, Colorado, as Receptlon No'
\ l.-e__a rL:i in Book zis at Paqel-77: and
${EREAS, Owner has aqreed to execut'e and deliver a letter of
:re,lrL to the county to secure and guarantee lts performanc:,?1 --this Agreement and has agreed Lo certain restrlctlons regarcling Ene
rssuance of building pe.mits and certificat.es of occupancy wit'hln
i;.-iruai"ision, ati is more fully set forth hereinafter.
NOll , TIIEREFORE, FOR AltD IN CONSIDERATION OF rl{E PREMISES AllD
THE FILI'TTING I{UAUAI. COVEITANTS A}ID AGREEMENTS ' TIIE PARTIES TIEREBY
AGF.EE AS FOLIOI{S:
l.OI|NER'SPERFORMAITCE.O'nerhasconstruct'edand
.rristalled, or will cause to be constructed and installed at its
sole expense those imprcvements requlred-through approval of the
F'reliminarV pian in RLsolution No' 94-063' The improvemen
required rnerein will be completed on or before Ar,gust lst. 1995 1n
compl iance wjt.h the following:
A.A,ilplaldocumentssubmittedpriortooratthetimeof
t-he Fjnal Frot-"pp.o"a1 includjng approved as-built crawings of alr
rmprovemenLs completecl prior to exetution of ghis Agreement, which
are incorpot.i"J'trerein'by reference and made a part of this
Ag reement
Trl
r.n00t0,rc,ffi
, :. . !4-i\(,1, inel'rdirrq all
ir: r,:,'l'-l,e .-;ari:e;:J
A,. iawr:i'lr.,'r ,r.ilr: ', ii lar f ic.'l at
',i..',ai'iis' I .'l:s.
:. I,)-1, -tli*": 'lr
i,. I :lA't":'la.S S:]brii.
a' l'i .r:-'.'.?')trei : a, r'l-,:.
rlro.j':.a?e-<, 'hF S'rtl Of COlOfado,
.s ...41i.-;s r.:Fi'lr;,ns 6trd affected
,sl,Jlls, :?tF\s, s['.' ', f lr:at-ictl 9, sk?Lehes and
ed '-,1 rr',-! nF,pr'-vr'.J l)!'tni' of the abcve
ii-]es.
T}.r. ,,):jr,t..i lrq'ees t.tra?. 1f a) 1 aJ.,J:ic..'emerlLs are tnrtallcd in
a--r. l dan''e wl1-f, l.hl s A'rreement, I 'nai !lat 't:rju'ne'rts' Lhe
req,r: r.ments ct ?,he Prelinr rnarY Flan, r-lten thG owner lhall bc
Jeer,ed '-c l",avr: sat; sf ied al I terms 6nd condttlons of zonlng'
:;r;t. j,: ',s1.rr, lcsoir)t ions and rerrr'li6Lions 'f Garf lcld CoJnt'y'
].SECURITYtlRlMPRovEMENTs.onorbeforethedatecfthe
:a: ::i::r: -f .-hc t';ral P:a'- wlth the C.l erk and Recorder, the owner
,:1.a, ^ ,jc.i ii'er a ie",,'r cf cre.JiL wiiich is acceptable to the County
in:heailo'.]ntoft.heimprcrrementsforthesubdivislonor.:mrrcvemen..s r.-har. have nr-,L yet been completed. Those improvements,
,.lr.ai."i ,.ir-t, tna ccsL as ,:e::tif r.ed by a licensed enqineer. 6re
.ai;;;;; n.iur" .,t uxhrLr:L B. The leiter of credit shal1 be issued
b.r.a staLe or natrcr)aI bankrng instit-ution in a form acceptable to
Itre Ccunty, and from an jnstiiution that 1s licensed to do business
in the -qtate of colorado. Certification of completion of
imprcvehents must be submjtted by a Iicensed or registered
;;r;;;";,. -sucn certification shall certify that the improvements
have tleen constructed in accordance with the requirements of thl!'
Aoreement, includin'l all Flnal Plats, anci plans, and shall be
siamped by said professj'onaI engineer'
Theletterofcreditsetforthhereinmustbevaricfora
minimum of nr;rety (90) days beyond the completion date for the
.tmprovements set forth heiein. Any extension of the tlme periods
within which improvements must be completec shall-cause the llne of
ciedit required herein to be extended for an equal amount of tlme'
If the county aetermlnes that the improvements are not constructed
in con,pfiance with the relevant speclfications, it shall furnish a
ietter'of potential deficiencies lo the O.rner within fifteen (15)
cia.,,s from th" dut" the county receives certification from the owner
th;t all improvements as set forth in Exhibit B have been
iompfetea. If that fet-er is not furnished within fifteen (15)
auy., aII j.mprovement*S shall be deemed accepted and the county
shall release the appropriate amount of security as such relates to
the completed improvl."r,t". If a Ietter of potential.deficiencies
rs furnished by the county, the count,y shall have thirty (30) days
to complete j.ti in".stiqation and pro'lde written confirmation of
,., {)910,,o 881
t|,. jeficienr:ies to the ()tner. If, rrpon further lnvestlgatlon' the
,:our,ti, f inrts 'l.hat al I 1m[,r.:1vemeuts are acccDtable, then thc
sppropriate securiiy st,ail be released to the Arner wtthln ten (10)
d;;";fter compl.etton of sr:ch lnveEtlgatlon' In tfig event that
such lmptovements are not tccepted by the County,-tle Board of
C.unt-1, Comrnissjonui" shalI make wrltien flndings before rcquc!tlng
pa',ment on the letter of ctedit'
The county may' at its opr'ion' permlt-thc Ownat. to lubttltute
.t,he! col lateral 66r-pt.able til the Count'y for the collateral
oiigir,"lly qi..ren by tire Owner tc.secure the completion of the
in,1,int"".nL.i as heieinabove provided' The County na)'r 6t its
nyrlion, provide Ce.'ner with pirti rl releases of the securlty fo?
imFrovenrents provrded by o*ner upon satisfactory evlJence of
p,aitiai r:onpletion of the impro'rements'
No Firral.PlaL shall be recorded pursuanL to this Agreenent
r.rnt i i a ],eLt-er oi crecllt in a f orm acceptable to the county 1t
re:eived b;' the CountY'
3. tlA?ER. At the time of executlon of t'hls Agreement,. all
w.fLel s),stem improvenents, includlng all easements neceSSary fo!
Lhc insialtation of that systeln, together wltt, the necessary water
ii,lhts and assignment of permits and water all(tment contracts and
cther water rights associated with the issuance of the wcll permlt
inalt Ue transierred by deed, dedicatlon or contract to the
tto*"o"rn"r. Association in the form set forth in Exhiblt "c"
attached hereto. Thar deed shall be recorded coincldent wlth the
filing of the final Plat.
4'INDEmII1I..Totheextentallowedbylaw,o.,neragreeg...: rndemnify and hold the county harmless and defend the county
Ir.onr a1I :l,iirns whieh nay arise as a result of owner's lnstallatlon
cf the improvements oursuant to this Agreement, provlded, however,
owner doei not indemnify the Co;rLy foi claims made asserting that
ihe standarCs imposed Uy tne County orr O&r,ner are improper or the
,:ause of the rnjurY asserted.
The County sha1l be required to notify the O^,ner of receipt of
a no.--r ce of clarm or a notice of intent. to sue and shall af f ord
Owner the oplion of defendlng any such claim or action. Fallure to
notrfy anci provide such option to o{ner shal1 extinguish the
County'srrghtunderthisparagraph.Nothinghereinstatedshallbe
ir,terpreted lo require )rnrnlr to indemnify the County from claims
wnrcn'rnav arise fiom the negligent acts or omissions of the County
:r its emploYees
5. SCSOOL IMPACT FEES. Owner shall be obligated to pay ?wo
Hundrecj Dollars (s200.00) per 1ot for school impact fees. o"rner
shai1,-ender Two Hundred Otllars (S2OO.OO) to the County for all
rr{)010'rc,E82
1r:ts wlthin the srrbdivisi,.lr at !-he t ime of rer:ording ol the FtnaI
Flat.
6.SALEoFtots.Nolotswilhintheproposedlubdlvtslon
thatisthesubJectofthisAqreementshEll}reconveyedpriorto
the recording ol Lhe FinaI Plat'
1, ADDno\'AL oF rINAL PlAt. The CcunLy agree!' to approval
of the Final prat lubiect Lo t.he terms and conditlorrs of this
i;r;;;";a; is welt-as'tne rerms and eondirions of thc Prellnln6rv
Plan.
8'ENEIRCEI.GNt.lnadditiontoanyrightrrrhlchnayt.e
prcrrided by Colora-o statute, it is rnuturlly agreed that the County
or any purchaser ;i-.-iot wiLhin ttr. Subdivlslon thall havc the
"r$,liiiiv io urtnq-"n i.iion In rhe Disrrict court of Garfleld
couhLy, color6do io--o.p"l enforcement of tht! Agrcem.nt. In the
;;;;a'r)o actlon is-comnLnced before lssuance of the final
certificate of cornpi"iion of improvements and tcceptaneg thareof by
the County, aDY puichaser's rlghts to commehce an 6ctlon thall
thereafter be extinguished'
9. CONSENI tO VACATE PIAI' In Lhe cvcnt the ownQr fallt to
comply htlth the terms of this Agreement' tnciudlng Lhe teflns of the
Prelimrnary Pran, -ii;-; a;r;av sr'iir have the abrlity to vtcatc the
pi"i ,r= ir'perrain"-io-iot"'for which no bulldrng perftlts havc bccn
I;;;"a: any exisrinf-rot" for which butlding permlt! have been
issued shall not Ue iacat'ea and Lhe plat as to thosc lots ghall
remain valid. The owner shall provide a survey and complcte lcgal
descrjption with J m"p-.f,o'i"g Lne locatlon of that portlon of the
pi ai- so vacaLed.
10. BIIIDING EFFECT. This Agreement shall be a covenant
runninq with
"he
title to each loL withln the subdivlslon and thc
iiqnts and oblioaiions as contained hereln shall be blndlng upon
and inure to the benefit of the ownerr its successors and as319n!'
11. RECORDING. Upon execution, O'v{ner shaIl rccord thls
Agreement with the offi;; of the clerk and Recorder for Garflcld
County, Colorado.
12. \,IE}IIJE A}{D JI,,RtsDIctIoN, venue and Jurlsdlctlon for any
cause arising out of or related to this Agreement shall lle ln thc
r,i.a.:.i-c"rit for Garfield county and be construed purtuant to thc
laws of the State of Colorado'
l3.RoADs.TheHomeownersAssociationshallbearthegolc
responsib,ility for the maintenance, rlpkeep,. rePal:' restoration'
=noi ,u*o"a1 and reconstruction of aIl roads within the
subCi vi st on.
(303) 9a5.'100{
FAX (303) 9d5 tqdP
,hd r aa.=4? irintot:\i^,
irt-=_(afflqt
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t.ttillt* 5 fl,
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t,IT IN('F] (-FIiEN F:STATF)S
I,F:CAI, t)F:S(-F I I'T I()N
A lrarce) df larld Fi t rtat-ed irl l'ot 6
s,-irt tr, Ranqe E R t'lest of t.ho s i xt h
GaIf iel<1 , !t at.e of ('olotado, naid
.:tenct ibo(l as f ol lows:
<1i sr anc0 of 'l 94 . 95 f eet I t-hence,
N,.rr-t h 0O degree8 00 mintltea 00 aeconds
5 and ?, SecLlon 11, TownehlP I
Principal Meridlan, CountY of
parcel' treing more parl-iculerly
Beqinning at. a point dhence the witneEs corner for I
.ornFr .oi sait.t iection l1 bearJ south 51 degreeg ?5
wesl iS 5lc.\r-'2t n t{), a distance of 1583'11 feeL ;
;.;;""; ;1 1 minutor: 54 !iecondc hlear (N olo2l'5{' h)'
rl 0rr . F0 f oet ; l.lrettce,
N()t t h 90 degroes o0 mintlt'eF o0 aecondr hest (N
fhe Southwest-
minuteE 26 seconds
r,hence, North 0{
a diBtance of
90oo0'00i t{) , a
(N 00000'00i E), a
di st anc'e of 129 . 55 feeL ; thence,
North 64 degrees 23 minutes 19
,l j s:t ance rtf' 385.52 f eet; t.hence,
Nott-h:B degrees 05 minutes 30
distance ot 224.28 feet to 6 Point54c, Page 2?3 in the office of the
Fecorder' s ; thence,
seconda (N 64023',19i
second6 Eaat. (N 28o05' 30n E), a
on a fenceline described aE Book
Garfield County Clerk and
bed in Book 549 aE Page 21) and Book 579 at
(s 71030'23" El ,
Eheltce,(s 68030'14i E) ,
274 a dist.ance of
53 second6 East (s 89045'53i
of 4 16 . 99 feet ; thence,
59 seconds East (S 00033'59"
Page
EaBt
Wes t
NcrthSgdegrees42minutes26secondsEasE(N89042'26rEl'said fenceljne described in Book 549 aE Page 21) and Book 5
272 a distance of 19?.80 feet; thence,
South ?l degrees 3O minutes 23 aeconds Eaat
said fenceline a distance of 175.19 feet;
south 6B degrees 3O minutes 14 seconds East
along a fenceline described in Book 549 at Page
along
Pag('
alonq
1o: .64 teeL; thence,
SouLh 89 degrees 46 minutes
said fenceline a disEance
South o0 degrees 33 minutes E)
disLance ot 555.38 feet; thence,
Sout.h 04 degrees 42 minuEes 01 Eeconds EaaE (S O4o42'01i E)
along the Easc lIne of a parcel of land described in Book 530 at
432;f sairi Garfield Counly records a disEance of 214'05 feeu;
Lhence J.eaving sajd East Iine.
North 90 6"9."." 0O minutes OO seconds west (N 9o"oo'00n w)'
distance of 434.5? feet !o Lhe point of beginning' Said parcel
r:antains 12 . 0? l acres, more or 1ess.
r.n,0010rtilE8{
t16 Wesl 6lh, Sule 200
firenwtxrd Sphn$, CO 8t60t
(3031 945-100{
Frdl r3031 945.gon8
atr4 r ra
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rnn00l0rtn'88S
luly 29, 199'l
Mr. Drvid Hiclr
l05l Prince CrEl Rmd
Crrbonddc, CO t1623
R.E: hlnec Crteh Ertrtc Cd fstlmetc
Deer David:
Pet your rcque$r rE hsve completed I oon3tructior co3t eltimetl for rmd l,rd *rta tyryt
iipi*r*b rr Frince Crek Erratqr. Thc ertimatc war done from thc planl poduccd-bfsgy
ilfo-M;t 16, 1994. The totel cott of on-ritc impmvcmenu will bc rpprorimrtcly 17,'m'
0rc breakdown for thesc oostt lr! outlined below.
The cost of road improvemcnts it basod on r l6fmt widc road urinj 6' of Chg 6 rt3rc3rf
basod cout* touling $l.t'000.
The cosr of the water sysrem ir rppmrimetcly t50,000. Ttrh lncluder thc lnrtalhfion of tso
*"ift "t $8,000 cactr, i5O0 linear ieer of coliection rnd dirtribution piptnt r, i2{''m,-'m
g.fi"n .irrch at $5,0b0, urd the conrol building rnd nessery rypurtenrnccr rt gl2'm'
Due to rhc variability of rhc wclt rnd conuol building c(Rt!, nG hrve rddcd rp,prodmraly lOt
o the rubtotal of $6t,000.
There will bc no dgnifrcant r€vegetation corr requircd for Olr worL.
Thc oost estimatc ir bascd on convcnationr wilh local contncton rnd priccr for rimllrr wort
Urc past two year. The cosr for rhe project rre rubjcct to chu3c, basl on ficld cmdidmr
and contractor availabilitY.
Pleasc do not h$itatc to cell if you have rny questionr.
Sincerely,
SCHMUESER GORDON MEYER' INC.
D-CU
Dur CoUey, EIT
tl? Wpct 6lh $11,rr 200
;, F6u (r1 cnr,nfi rlO 8lB0t
ffi*%**,f BaId(
DATE OF ISSUE: August 7, 1994
TO: (Benef iciary) Garf iel-d County
APPLICANT: David W. Hicks and Connie F. Hicks
EXPIRATION DATE:October 1-, 1995
AMOUNT: Seventy-Five Thousand and Uo/100 Dollars
( $75, 000 . 00 )
We hereby establj-sh our irrevocable letter of credit in favorof the Beneficiary available by payment wlt.h the Alpine Bank of
Carbondal-e of the Beneficiary's drafts drawn on the Alpine Bank ofCarbondal-e if accompanied by the fol_lowing documents:
a) A Beneficiary's statement signed by the Commissioners ofGarfield County, Colorado, certifying that "David. w. Hicks and
Connj-e F. Hicks have failed to perform under and in accordance withthe provisions of the Price Creek Estates Subdivision as per theexecuted Subdivision Agreementrr entered into the l-st day of August,7994, between the Beneficiary and the Applicant, a copy of which isattached hereto and incorporated herein by reference, and statingthe amount of the default;
b) The original Letter of Credit.
A11 drafts drawn under this credit are to be endorsed hereonand shall bear t.he clause rrDrawn under Alpine Bank of CarbondaleLetter of Credit No. 75722-02, dated August t, 1994."
This Letter of Credit is subject to the "Uniform Customs andPractice for Documentary Credits (1983 Revision), InternationalChamber of Commerce Pub. 400."
Alpine Bank of Carbondale hereby engages with the Beneficiarythat all- drafts and documents drawn under and in compliance witirthe terms of this Letter of Credit will be duly honored if drawnand presented for payment at the Alpine Bank of Carbondale on orbefore the expiration date of this Letter of Credit.
0326 Highway #133 . Carbondale, Colorado 81623 . (303) 963-3040
Fermetly hnown as Roartnq f atk Bank
ALPiNE BANK OF
fd, President
lDn-OEC7 recycled paper
383953;'148 P. Er3
Form No.
GWS-25
JUL_ I9-94 TUE E4 Ff'l FR I t'.lCE CREEIi rlOl'{ST.
OFFICE OF THE $* -E ENGINEER
COLOFADO DIVISIU,{ OF WATER RESOUHCES
818 Contonnial BtdE,. 1313 $hotman Et., Denvsr, C,]lorado 0OiS3
(3o3) 866-3581
APPLICANT
DAVID & CONNIE HICKS
1051 PRINCE CRK RD
CARBONDALE CO 81623
( 303)s63-818?
PERMTT TO CONSTHUCT A WELL
A P P R OVED]ryELL..IS8AI!9N
GARFIELD COUNTY
NW 114 SW 1/4 Sectlon 11
Twp I S RANGE 88 W 6th P.M.
DISTANCES FROM SECTION LINES
1790 Ft, from Sottth Seaion Llne
1O1O Ft. from West Section Llne
DIV. 5 CNTY. 23 WD
1)
2)
3)
ISSUANCE OF THIS PEHMIT DOES NOT CONFER A WATER RIGHT
g, ,oNDmoNS oF APTBoVAL
This well shall bo used iri such a way as to cause no material injury Io exlsling water rights. The lssuanoe of tlta
permit does not assur€ the applicant that no injury will occur to another vestad watsr right or precludo another
owner of a vested water right from seeking relief ln a civil couft actlon.
Tha construotion ol thls well shall be irr complianco with the Wgter Well Construotion and Pump lnstallation Flules
2 CCR 402-2., unless approval of a variance has been granted by the State Board of Examlners of Water Well
Construction and Pump lnstallation Contractors in accordance with Hule 17,
Approvecl pursuant to CRS 37-s2-602(3)(c) for th6 relocation of en existirrg well, permit no. {05764. The old well
must be pluggect and abandoned accordlng to the Wat6r W6ll Construction and Pump lnstallation Rules within
nlnety (90) days of completlon of the new well. The enclosad well abandonmsfit repon form must be completed
dfirming thd tfr€ old well was plugged ancl ahendoned.
4) Approved as the only well on a lract ol land of 38 acres described as that portion of the SW 1i4 of Sec, 11 and
the SE 1/4 of Sec. 10, all in Twp. I South, Bng. 88 Wsst ot ths 6th P.M., Garfield County, llelng more particulerly
described on the attached exhibit'A..
The use of ground water from this well is lirnited to ordinary household purposes lnslde threo (3) singte tamily
dwellirtgs, fire protection. ths watering of poultry, domostic animals, and llvastock on a larm or ranch, ancl the
lrlgetioft of not mor6 than one (l) aore of home gardens and lawns.
Th€ maximum pumpillg rate shail not exceed 1S GpMr
The average annual amount of ground water to be withdrawn shall not exceed B acre-feet.
This well shall be constructed not rnore than 200 feet from the locatiorl specified on this perm'rt,
The return flow from the use of this well must be through en indlvldual waste water disposal systenr of the
nolr€vaporative type where the water is returned to ths same sream system in whlclr the wBll ls located.
t-U tt-?-3-21
OWNHH'$ COPY
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6)
7')
8)
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EXPIRATION DATE JUH 2. ? Igg$
DECI,ARATIONS
oF covENANTS, CONDITIONS AND RESTRTCTIONS
PRTNCE CREEK ESTATES HOMEOT{NERS ASSOCTATION, INC.
THfS DECLARATION, made on the date hereinafter set forth by
David Hicks and Connie Hicks, hereinafter referred to as "Declarant".
WITNESSETH:
WHEREAS, Declarant is the owner of certain Property in Garfield
County, State of Colorado, which is more particularly described as:
SEE ''EXHIBIT A'I - LEGAL DESCRIPTTON,
andm ,referred to as the "Property".
which is attached hereto
and shall be hereinafter
NOW THEREFORE, Declarant hereby declares that aII of theproperties described above shalI be heId, sol-d and conveyed subject
to the following easements, restrictions, covenants, and
conditions, whlch are for the following purposes, and which shal-Irun with the real property and be binding on all partles havinq any
right, title or interest in the described properties or any part
thereof, their heirs, successors and assiqns, and shall- inure tothe benefit of each owner thereof:
1. To protect the value, desirability and attractiveness ofthe Propert.y and enhance the quality of life within the
development.
2. To develop the Property in accordance with a master plan
and qeneral scheme of development into a resident.ial community, to
be collectively known as Prince Creek Estates (the "Project")
3. To efficiently manage the Property by creating an owners
association to which should be delegated and assigned the powers ofmanaqing, maj-ntaining by administration the common areas,administering and enforcj-ng these covenants, conditions andrestrictions and collecting and disbursing funds pursuant to the
assessments and charges hereinafter created and to perform suchother acts as are herein provided or which generally benefit its
members, the Project, and the owners of any interest therein.
4. To create the Prlnce Creek Estates Homeowners
Association, a non*profit corporation, that has been, or will be,incorporated under the laws of the State of Col-orado for thepurpose of exercising such powers and functions.
5. To permit the owners, mortgagees, beneficiaries and
trustees under trust deeds, occupants and all other persons
hereinafter acquiring any interest in the Property to at aII times
enjoy the benefits of, and to hold their interests subject to, the
covenants, conditions, restrictions, 1i-ens, assessments, easements,privileges and rights hereinafter set forth, al-1 of whlch are
declared to be in furtherance of a plan to promote and protect the
Proj ect.
SECTION 1 DEEINITIONS
UnIess the context clearly requires otherwise, the following
terms used in this Decl-aration are defined as follows. Defined
terms appear throughout this Decl-aration with the initial letter of
such term capitalized.
1.1 "Articles" means the Articles of Incorporation of theAssociationr- as such may be amended from time to time r or of any
successor thereto.
7.2 "Assessments" shal-l include the following:
1,.2.1, "Regular Assessment" means the amount which isto be paid by each Member of the Assocj-ation as such Member'sProportionate Share of the Common Expenses of the Association, asprovided in Section 6.3.
1aaL.'.L "Special- Assessment" means a charge against. aparticular Member, an Owner or a Lot, directly attributable to suchMember, Owner or Lot, to reimburse the Association for costsincurred in bringing this Declaration, the Articl-es, By1aws,
Association RuIes or Design Guidelines, or any other chargedesj-gnated as a Special Assessment in this Declaration, theArtic1es, Bylaws, Association Rules or Design Guidelines, togetherwith attorneys' fees and other charges payable by such Member or
Owner pursuant to the provisions of thj-s Dec1aratlon.
1.2which is to
Proportionatestruction of
Secti-on B.
"Reconstruction Assessment" means the amount
be paid by each Member representing such Member's
Share of the cost to the Association for recon-
any portion of the Common Areas, ds provided in
7.2.4 "Capital Improvement Assessment" means the
amount which is to be paid by each Member representing such
Member's Proportionate Share of the cost to the Association for the
instal-l-ation or construction of any capital improvements on any ofthe Common Areas which the Association may from time to time
aut.horize pursuant to the provisions of Section 6.3.4.
1.3 "Association" shall mean and refer to PRINCE
ESTATES gOUnOVgUnnS aSSOCIATION, it successors and assigns.
CREtrK
7.4 "Association Rules" means the rules and
adopteci uy t-@suant Eo section 4.i0.
regulati-ons
1.5 "Board" means the Board of Directors of the Association.
1.5 "Bylaws" means the Bylaws of the Association adopted in
accordance with the ArticLesr ds such Bylaws may be amended from
time to timer or of any successor thereto.
L.1 "County" means Garfield County, Colorado.
l- . 8 "Common Areas " shall mean al-l- real- property (including
improvements thereto) operated and maintained by the Association
for the common use and enjo)rment of t.he owners. The Common Area to
be maintained by the Association at the time of the conveyance of
the f irst lot is described as f oll-ows:
(a) Common driveways that provide access for all- lots
to Garfiel-d County Road 111.
(b) Two (2) domestic water wells (Col-orado WeII Permit
#'s 105764-A & i-'7 4240) .
(c) Domestic water supply piping and appurtenances.
(d) Irrigation water supply piping and appurtenanceswithin the subdivision.
1. 9 "Corlrnsn__ExperrEeE" means
incurred by-the Association in
operatingr the Pro j ect, includi-ng,
following:
the actuaf and estimated costs
administerJ-ng, maintaining andbut not strictly limited to, the
(a) maintenance, management, operation, repai-r and
replacement of the Common Areas and property, and all other areas
on the Project which are maintained by the Association;
(b) unpaid Assessmentsi
(c) maintenance by the Association of areas within theproject where public right-of-way is allowed as provi-ded j-n this
Declaration or pursuant to agreements with the County;
(d) costs of management and administration of the
Association, including, but not limited to, compensation paid by
the Association to managers, accountants, attorneys and employees.
(e) the costs of maintaining utilities, including but
not limited to water, electrj-city, 9ds, sewer, trash pick-up and
disposal, and other servj-ces which generally benefit and enhance
the value and desirability of the Project and which are or may be
provided by the Associati-on;
(f)
compensation
Areas;
(s)
Associ-ation;
the costs of fire, casualty, Iiability, worker'sand other appropriate j.nsurance covering the Common
the costs of any other j-nsurance obtained by the
(h) reasonabl-e reserves for continqencles, repJ-acements
and other proper purposes as deemed appropriate by the Association,
which reserve fund shall be adequate to meet the costs and expenses
of maintenance, repairs and replacement of those Common Areas which
must be maintained, repairedr or replaced on a periodic basis;
(i) the costs of bonding the mernlcers of the Board, the
President, any professional managing aqent or any other person
handling the funds of the Association;
(j ) taxes paid by the Association;
(k) amounts pai-d by the Association for discharge of
any lien or encumbrance Ievied against the Common Areas or portion
thereof;
(1) costs incurred by the Design Review Committee;
(m) costs incurred by committees established by the
Board or the President;
(n) costs of securitygates at entrances to the Project,
or services installed, operated
Association;
guards, and operation of key
and any other security systems
or contracted for by the
(o) other expenses incurred by the Association for anyreason whatsoever in connectj-on with the Common Areas (excepting
reconstruction costs and capital improvements as otherwise providedherein), or performed by t.he Association pursuant to, thisDeclaration, the Articles, Bylaws, Association Rules or Design
Guj-de1ines, or j-n furtherance of the purposes of the Association orin the discharge of any duties or powers of the Association.
1.10 "Declaration" means this
time amended.
instrument,AS from time to
1.11 "Desrgn Guidefines" means the rules, regulatlons,restrj.ctions@tandardsanddesignguideIinesfrom
time to time adopted by the Design Revj-ew Commi-ttee pursuant toSection 1,1, .2 .
1,.1,2 "Desrgn Review Conmittee" means the committee providedfor in Section t:-, effictura1 and Landscape Control".
1.13 "Declarant" means David Hicks and Connie Hicks, thelr
successors and assiqns r er any person to whom t.he Declarant's
rights hereunder are hereinafter assigned by recorded instrument,
or any Mortgagee of the Decl-arant which acquired title to or
succeeds to the interest of the Declarant in any Lot or other
portion of the Property by reason of the foreclosure (or conveyance
in l-ieu of foreclosure) or trustee's sale under the Mortgage of
said Mortgagee.
1. 14
shown on
shal-l- not
"Lot" shall mean and refer to any final- platted lot
ttre approved subdivision for Prince Creek Estates, but
include platted outlots, if any.
1 . 15 "Ma j orit.y of Members " means the Members holdj-ng more
than 50% of the total votes entitled to be cast with respect to a
given matter; and any specified fraction or percentage of the
Members means the Members holding that fraction or percentage of
the total- votes entitled to be cast with respect to a given matter.
A specified fraction or percentage "of all of the Members" means
that fraction or percentaqe of the total votes of all Members other
than Declarant. Unless otherwise specified, any provision herein
requiring the approval of the Members means the approval of a
"Majority" of Members.
1. l-6 "Member" means every Person who holds a Regular
Membership
-in
the Association pursuant to Section 3, entitled
"Membership".
l.l7 "MoIlgege" means any recorded, filed or otherwise
perfected instrurnent given in good faith and for valuable
consideration which is not a fraudul-ent conveyance under Colorado
law as security for the performance of an obligation, including
wlthout l-imltation a deed of trust, but shal-1 not include any
instrument creating or evidencing soleIy a security lnterest
arising under the Uniform Commercial Code. "Mortqaqee" means the
holder of a note secured by a Mortqage, including the trustee and
beneficlary under any deed of trust. "Mortgaqor" means the party
executinq a Mortgage. "First Mortgrage" means a rMortgage which is
the first and most senior of aII Mortgages upon the same property.
"First Mortgagee" means the hol-der of a First Mortgage.
1. 1B "Occjrpgrr!" means any Person, other than an Owner, in
rightful possession of a Lot, whether as a guest, tenant or
otherwise.
1. 19 "Owner" shall- mean
whether one or more persons orany Lot which is a part ofseIlers, but excluding thosesecurity for the performance of
and refer to
entities, of a
the Properties,
having such
an obligation.
the record owner,
fee simple title to
including contract
interest. merely as
5
7.20 "Person" means an individual, corporation, partnership,trustee or otLrer entity capable of holding titte to reit property,
and their respective heirs, successors and assi-gns.
1.21, "Plat"frrsc recorcieci
Colorado, and as
mented.
means the plat of subdivision of the Parcel asin the official records of Garfield County,
thereafter from time to time amended or supple-
1.22 "Presi-dent" means thepresident of tne association.
duly el-ected or appointed
1,.23 "Private Roads" and "Private Ways" are synonymous and
mean any street, roadway, d.rive,@kway, path or otherright-of-way within the Project which has not expressly beendedicated to the public use.
1,.24 "Prqjgs!" means the master planned development of theProperty, as described in the recitalJ hereof, to be ca11ed the
"Pri-nce Creek Estates".
1, .25 "Propsrly" means the real- property sub j ect to thisDeclaration,--t6gEEIer with al-l- buildings, - impiorrernents and otherpermanent fj-xtures of whatever kind now or hereafter locatedthereof, and a1I easements, rights, appurtenances and prlvileges
belonging or in any way pertaining thereto.
1.26 "Record"aor or cire acc or
County Recorder for
or "Recording" means an j-nstrument of
recordj-ng-En-Tnstrument with, the office
Garf iel-d County, Col-orado.
record
of the
1.27 "Transfer Date" shalI be the date that control of the
Homeowners associatiorr transfer from the Declarant to the Cl-ass rtArl
Members, as provided in Section 3.2.2.
t.28
thereof."Water Cost" means the cost of water and delivery
SECTION 2. RIGHTS OF ENJOYMENT
2.1, Me . Every Member shall have anon-excl-usi joyment in and to the CommonAreas to the extent that the Homeowners Association has an interest
in those areas, which right shall be appurtenant to and shall passwith such Member's membership as herein provided, with respect tothe property subject thereto, and to al-l of the easements,covenants, conditions, restrictions and other provisions containedin this Declaration, including, without limitatj-on, the followingprovisions:
6
2.1.1 The right of the Association to establ-ish
reasonabl-e rules and regulations pertaining to or restrictinq the
use of the Common Area by Members or other Persons.
2.1-.2 The right of the Association to borrow money
for the purpose of improving, replacinq, restoring or expanding the
Common Area or adding new Common Area and, in aid thereof, to
mortgage said property, provided that the rights of the l-ender
thereunder shal-I be subordinated to the rights of the Members.
2.1.3 The rights of the Association to suspend the
right of a Member or any Person (including without flmitation an
Owner or a member of the family of a Member or owner) to use the
Common Area or any designated portlon thereof during any time in
which any Assessment respecting such Member remai-ns unpaid and
delj-nquent, or for a period not to exceed sixty 60 days for any
single infraction of the Assocj-ation Rules or breach of this
Declaration, and up to one (1) year for any subsequent violation of
the same or simil-ar provision of the Association Rules or this
Declaratlon, provided that any suspension of such right to use the
Common Area, except. for failure to pay Assessments, shall be made
only by the President, the Board or a duly appointed committee
thereof, after notice and hearing given and held j-n accordance with
the Bylaws. Notwithstanding the foregoinq, the Association shall
not have the right hereunder to suspend any Member or owner's right
to use any portion of the Property or Private Roads necessary for
such Member or any owner to gain access to his Lot.
2.2 Deleqation of Use. No member may
use and enjo@mmon Area to any
members of his immediate family as provided
guesLs as permitted by the Associatj-on Rul-es.
delegate his right of
Person, excepL to the
in Section 3 or to his
2.3 Waiver of Use. No Member or Owner may exempt hi-mself,andnoueMhal].beexempt,frompersona1]i;bi1ityfor
Assessments or release any Lot owned by hj-m from the Liens, chargesand other provj-sions of this Declaration, the ArticIes, Bylaws,
Association Rules or Design Guidelines, by voluntary waiver of, or
suspension or restriction of such owner or Memberls right to, theuse and enjoyment of the Common Area, or the abandonment of such
Owner or Member's Lot or membership (except the relinquishment of a
Special Membership.
SECTION 3. MEMBERSHIP AND VOTING RIGHTS
3.1 Lot Owner. Every owner of a Lot which is subject to
assessment shall- be a Regular Member of the Association. Regular
Membership sha1l be appurtenant to and may not be separated from
ownership of any Lot which is subject to assessment.
3.2 Classes of Membership.
classes of@.
The Association shall have two
3.2.1, Class A. Class A member(s) shall be all
Owners, with the exception of the Declarant, and shall be entitled
to one vote for each Lot owned. When more than one person holds anj-nterest in any Lot, all such persons shall be members. The vote
for such Lot sha1l be exercised as they determine, but in no event
shal1 more than one (1) vote be cast with respect to any Lot. In
the event that any Lot or Lots are owned by a corporation the
corporation shall authorize an officer or director who is a
resj-dent of the County of Garfie1d to be a Member for voting and
other purposes.
3.2.2 Cl-ass B. The Class B member(s) shall be the
Declarant and shall be entitled to three (3) votes for each Iot
owned. At such time as the Class B membershj-p j-s converted to Cl-ass
A membership in the manner described below the Class A memlcership
shal1 obtain and shall permanently retain exclusive control over
the activities of the Association. The Class B membership shal-I
cease and be converted to Class A membership when the followlng
sha1l occur: (referred to as "Transfer Date").
(1) The total
membership attributable to the
described in Exhibit 'rA" exceed
Class B membership attributable
3.4 Transfer of membership.
shall- not aas herein expressly provided.
votes outstanding in the CLass A
Iots incl-uded within the property
the total- votes outstanding j-n the
to the same property.
A membership in the Association
or alienated in any wdy, except
A Regular Membership shall-
3.3 Voting Rights and Limitations.
3.3.1 Suspension of Votinq Rights. If any Owner,
his family or any licensee, lessee or invitee violates the
Association Rul-es once adopted by the Board after Notice and
Hearing, the Board may suspend the right of such person to vote his
membership interest, under such condi-tions as the Board may
specify, for a peri-od not to exceed sixty (60) days for each
viol-ation. Before j-nvoking any such suspension of voting rights,
the Board shall gi-ve such person Notice and Heari-ng.
3.3.2 Additional Votirq Require . Prior to the
completion of the fr ount of regular
annual assessments levied 1n any year upon the owner of each Lot in
the Subdivision under $500 per owner, shall require the consent of
Declarant in addition to any other vote, consent or approval
required.
automatically be transferred to the new owner upon the transfer of
the Lot to which it appertalns (and then only to such transferee),
whether by sale, interstate succession, testamentary disposition,
foreclosure of a Mortgage or other legal process transferring fee
simple titl-e or the leasehold interest to such Lot.
SECTION 4.ASSOC]ATION
4.L Purpose of Association. The Associatj-on has been, or
wil-1 be, incorporated as a non-profj-t corporation to serve as the
governing body for aII of the owners and Members for the
protection, improvement, alteration, maj-ntenance, repair,
replacement, administration and operation of the Project, the
assessment of expenses, payment of losses, disposition of casualty
insurance proceeds, and other matters as provided in this
Declaration, the ArticIes, Bylaws, Associatj-on Rules or Design
Guidel-ines. The Association shall not be deemed to be conducting a
business of any kind, and all funds received by the Association
shal-l- be hel-d and applied by it for the owners and Members in
accordance with the provisj-ons of this Declaration, the Articles
and the Bylaws.
The Associatj-on shall- specifically have management, control
and maintenance of the water distribution system/ all roadways, a1I
common areas and al-l- irrigation systems.
4.2 Me . Each C1ass A and Cfass B
Member shal ciation so long as he shall- be
a Member of the Association as provided in Section 3, and such
membership shal1 automatically terminate when he ceases to be a
Member. Any attempt to make a prohibited transfer of a membership
in the Assocj-ation is void and wiII not be recognized by or
refl-ected upon the books and records of the Association. In the
event any Member fail-s or refuses to transfer or surrender the
membership registered in his name as herein required, the
Association shalI have the right to record a transfer upon the
books of the Association and issue a new membership as appropriate,
and thereupon the old membership outstanding in the name of said
Menrlcer shall be nuLl and void as though same had been surrendered.
4.3 Ple@. Notwithstanding the foreqoing,
in the eve giranted an irrevocabl-e proxy or
otherwise pledged the voting right appurtenant to the Regular
Membership wlth respect to his Lot to a Mortgagee as additional-
security, only the vote of such Mortgagee will be recognized in
regard to such special matters if a copy of such proxy or other
instrument pledging such vote has been fll-ed with the Association.
In the event that more than one such instrument has been filed, the
Association shall recognize the ri-ghts of the first Mortgagee to so
fiIe, regardless of the priority of the Mortgages themselves.
4.4 Ass . If any l-ender
to whom t ter assigns, ds
security aIl or substantiatly a1l- of its rights under this
Declaration succeeds to the interest of the Declarant by vi-rtue of
said assignment, such assignment if it includes voting rights,
sha1I be made known to the Homeowners Association.
4.5 Board of Directors
4.5.1 Directors.The affairs of the Association
shaf l- be conducted by the Board as here j-n provided and 1n
accordance with the Articles and Bylaws. Except for directors
elected by the Declarant, each di-rector shal-l- be a Member or the
spouse of a Member.If a director shall cease to meet such
qualifications during his term, he wil-1 thereupon cease to be a
director and his place on the Board shal-I be deemed vacant.
4.5.2
shal-I be elected by
Members.
Election of the Board. The Board of Directors
a maiority of votes of the Class A and Class B
. 4.6.7 to
borrow any
on behalf
five (5%)
's budget,
a Special
deems necessary or appropriate.
any assJ-stant except as provided in the Association's budget or
otherwise approved by the Board.
Notice and Quorum for Board Action. Writtenaction of any meeting called for the purpose of taking actlon
authorized herei-n shal-I be sent to all Members not less than five(5) nor more than thirty (30) days in advance of such meeting. In
the event the proposed action is favored by a majorlty of the votescast at such meeting, but less than the requisj-te fifty (50)percent (majorj-ty) of each class of Members, Members who were notpresent in person or by proxy may give their assent in writingwithln fourteen (14) days after the date of such meeting.
4.6 Duties and Powers of the President
4 .6.1 To the extent not prohlbited by Iaw, or as
otherwise herein expressly Iimited, including without limitation
Section 4.6.2,, the President of the Association shal-l- be empowered
to exercise control over the affairs of the Association and to act
on behalf of, and bind, the Assocj-atlon in every instance wherein
the Association is required or permitted to take any action. The
action of the President shall at al-l times be subject to the review
of the Board.
4.6.2 Notwithstanding anything in Section
the contrary, the President shal-} not have the power to
funds on behalf of the Association, make any expenditures
of the Associatj-on which are, in the aggregate, more thanpercent in excess of the total- amount of the Association
or increase the amount of or levy any Assessment (except
Assessment), without the prior approval of the Board.
4 .6.3 The President may appoint such assistants as
No compensation shall- be paidhe
to
AS
to
4 .6.4the Presi-dent
Any right or power herein given or delegatedwhich cannot be exercised by the President,
10
whether by reason of Iaw or otherwise, shaIl be deemed to be aright or power to be exercised by the Board.
4.-l President's Determination Binding. In the event of anydispute or Membersr or any otheiPersons subject to this Declaration, relating to the project r otany question of interpretation or application of the provisions ofthis Declaration, the Articles, Bylaws, Association RuIes or DesignGuidelines, the determination thereof by the President shal1 befinal and binding on each and a1l- of such owners, Members or
Persons.The President frdy, at his electj-on, delegate theresolution of such dispute or dJ-sagreement to the Board or acommittee appointed by the President.
4.8 Approval of Members. Unless elsewhere otherwise spe-cifically provided in this Declaration, the Articles or Bylaws, anyprovision of this Decraration, the Articl-es or Bylaws whichrequires the vote or wrj-tten assent of the Members of theAssociation or any class or cl-asses of membership shall- be deemedsatisfied by the following:
(a) The vote in person or by proxy of the specifiedpercentage of Members at a meeting duly called and noticed pursuant
to the provisions of the Articles or Bylaws dealing with annuaf orspecial meetings of the Members.
(b)
of Members as
(c)
then the vote
required.
Written consents signed by the specified percentageprovided by the Bylaws.
If no percentage of Members is otherwise speci_fied,or written assent of a Majority of Members sha11 be
4.9 Additional Provlsions in Articles and l-aws.TheArticles and Bylaws ma relating to theconduct of the affairs of the Association and theof its directors, officers, employees, agentsinconsistent with law or this Decl_aration.
rlghts and powersand members not
4.10 Association Rules. The Board sharr be empowered toadopt, ame@h rules and regulations as it deemsreasonable and appropriate (the "Association Rules") , binding uponall Persons subject to this Declaration and governing the useand/or occupancy of the common Area or any other part of theProject. The Association Rules may include the establj-shment of asystem of assessments enforceable as speciar Assessments.TheAssociation Rules shalL govern such matters in furtherance of thepurposes of the Association, includlnq, without llmitation, the useof the Common Areas; provided, however, that the Association Rulesmay not discriminate among Owners and Members except as expresslyprovided or permitted herein, and shall not be inconsistent withthis DecJ-aration, the Articres, Bylaws or Desiqn Guidel-ines . A
l_ l-
copy of the Association Rules as they may from time to time be
adopted, amended or repealed or a notlce setting forth the
adoption, amendment or repeal of specific portions of the
Association Rul-es shall be del-ivered to each owner and Member in
the same manner establ-ished in the Declaration for the delivery of
notices.Upon completion of the notice requirements, said
Association Ru1es sha1l have the same force and effect as if they
were set forth in and were part of this Declaration and shall- be
blnding on the Owners and Members, and all- other Persons havi-ng anyj-nterest in, or making any use of, the Property, whether or not
actually received thereby.
The Association Rul-esr ds adopted, amended or repealed, shalI
be avail-ab1e at the principal office of the Association to each
Owner, Member or other Person reasonably entitled thereto, upon
request. In the event of any conf l-ict between any provj-sion of the
Assocj-ation Rules and any provisions of this Declaration, or the
Articl-es, Bylaws or Design Guidel j-nes, the provisions of the
Association Rules shal-I be deemed to be superseded by the
provisions of this Declaration, the Articl-es, Bylaws or Design
Guidelines to the extent of any such conflict.
4.77 Indemnification. To the ful-lest extent permitted by
Iaw,every-MveryofficeroftheAssociation,andthe
members of the Design Review Committee, and the Decl-arant (to the
extent a claim may be brought against the Declarant by reason of
it.s appointment, removal or control over members of the Board or
the Design Review Committee) shall be indemnified by the
Association, or on behalf of the Assocj-atlon as a member of a
committee or otherwise, mdy, in the discretion of the Board, be
indemnified by the Association, against al-I expenses and
liabilities, including attorneys' fees, reasonably incurred by or
imposed upon him in connection with any proceeding to which he may
be a party, or in which he may become involved, by reason of his
being or having served in such capacity on behaLf of the
Association (or in the case of the Decl-arant by reason of having
appointed, removed or controll-ed or failed to controf members of
the Board or the Design Review Committee), or any settlement
thereof, whether or not he is a director, officer or member of the
Design Review Committee or serving in such other specified capacity
at the time such expenses are incurred, provided that the Board
shall determine, in good faith, that such officer, director, member
of the Design Review Committee or other person, or the Declarant,
did not act, fail to act, or refuse to act willfully or with gross
negligence or fraudulent or criminal j-ntent in the performance of
his duties. The foregoi-ng rights of indemnification shall be in
addition to and not exclusive of al-l- other rights to which such
persons may be entitl-ed at law or otherwise.
4.1,2 Non . To the fullest extent
permit.tea U fre President, the Board, the
Design committee or any other committees of the Association nor any
L2
member thereof, nor any directors or officers of the Association,
shal1 be liabl-e to any Member, Owner, Occupant, the Association, orany other Person for any damage, loss or prejudice suffered or
claimed on account of any decision, approval or disapproval ofplans or specifications (whether or not defectj-ve), course ofaction, act, inaction, omissj-on, error, negligence or the like madein good faith and which Declarant, the Declarant, the President,
the Board, or such commlttees or persons reasonable believed to bewithin the scope of their respective duties.
4.13 Easements. In addition to the bl-anket easements granted
inSection-5.1,theAssociationisauthorizedandempoweredto
grant upon, across or under real property maj-ntained or controlled
by the Association such permits, Iicenses, easements and rights-of-way for sewer 1j-nes, water lines, underground conduits, storm
drains, television cable and other similar public or private
utility purposes, roadways or other purposes as may be reasonably
necessary and appropriate for the orderly maintenance, preservation
and enjoyment of the Common Area or recreational facilities or forthe preservation of the heal-th, safety, convenience and welfare ofthe Owners and Members, provided that any damaqe to a Lot resutting
from such grant shalI be repaired by the Association at its
expense.
4.L4 Acco_gglirrg. The Association, at aII times, shall keep,
or cause to be kept, true and correct record.s of account in
accordance with generally accepted accounting principles, and shallhave available f or the j-nspection of atl- owners and Members atreasonabl-e times during: regular business hours, such books which
shall specify in reasonabl-e detail all- expenses incurred and funds
accumulated from Assessments or otherwise.
4.15 Records. The Association shal-I, upon reasonable written
request and during reasonable business houfs, make available forinspection by each owner and Member the books, records andfinancial- statements of the Association together with current
copiesr ds amended from tlme to time, of thls Declaratj-on and theArticles, Bylaws, Association Rules and Design Guidelines.Notwithstanding the foregoing to the contrary, t.he Associationshall not be required to make its books and records available forinspection except as required by law. The Declarant shall- be underno obligation to make its own books and records avail-able forinspection by any Owner, Member or other person.
13
SECT]ON 5 EASEMENTS
5.1 Blanket Easements. Those easements required by the
Projectsuu-@andpIatareadoptedherein.Further,
there 1s hereby created a blanket easement upon, across, over and
under the Property for j-ngress and egress (over existing roadways),
installinq, constructinq, replacing, repairing, maintai-ningT and
operating all, utilities, including but not Iimited to water,
sewer, 9ds, telephone, electricity, tel-evision cable, security
systems, and communication 1j-nes and systems, and in addition
thereto for the use of emergency vehicles of al-I types. By virtue
of the easement, it sha11 be expressly permj-ssible for the
providing utility company to erect (including without l-imitation
underg:round installation) and maj-ntain the necessary facilities,
wires, circuits, conduits, cables and rel-ated appurtenances,
facilities and equipment on the Property. Notwithstanding anything
to the contrary contained j-n this Section, no easements shall- be
created nor shall any sewers, electrical l-ines, water lines or
other facil-ities for utilities be instal-Ied or relocated except as
initlally created and approved by the Declarant or thereafter
created or approved by the Association. This provision shalI in no
way affect any other recorded easements on the Property.
5 .2 Use of Common Areas. Except f or the use l-imitations
provided i wner and Member shall- have the non-
excLusive right to use the Common Areas in conrmon with all other
Owners and Members as requlred for the purposes of access and
ingress and egress to (and use, occupancy and enjoyment of) any Lot
owned by such Owner or Meml:er. Such right to use the Common Areas
for purposes of access and ingress and egress sha11, subject to the
Association Rules, ext.end to each Owner, Member, Occupant and the
agents, servants, tenants, family members and j-nvitees of each
Owner or Member. Such right to use the Common Areas shall be
perpetual and appurtenant to each respective Lot, subject to and
governed by the provisions of this Declaration, the ArticIes,
ByIaws and Association RuIes and such reasonable Iimitatj-ons and
restrictions as may from time to time be contained therein.
5.3 Exclusive Use of Rights. Certain areas of the Common
Areas may be reseryard for the exclusive control,
possesslon and use of the Owner of a Lot. If such an area serves
as access to and from two Lots, the Owners of the two Lots shall
have joint control, possession and use of such portion of sai-d area
as reasonably serves both Lots. The exclusive use rights created
herein are subject to the blanket utility easement, maintenance,
and architectural and landscape control provisions contained in
this Declaration and to such reasonabl-e rul-es and reqrulations with
respect to possession, control, use and maintenance as the
Association may from time to time promulqate. Easements are hereby
created in favor of and running with each Lot having such an area
for the exclusive control and use of each such area. Each Owner,
by accepting title to a Lot, and each Member shall be deemed to
14
have further ratified the easements and rights to excfusive use
created by this Section 5.3.
SECTION 6.ASSESSMENTS
6.1 Creation of Lien and Personal Obligation. Each Owner
and Uembe veyance of an
interest in a Lot or by acceptance of his membership, is deemed to
covenant and agree to pay to the Association: Reqular Assessments,
Special Assessments, Capital Improvement Assessments, and
Reconstruction Assessments, if applicable, such Assessments to be
established and collected from t.j-me to time as provided in this
Declaration. The Assessments, together with interest thereon, l-ate
charges, attorneys I fees and court costs, and other costs of
collectj-on thereof, as hereinafter provi-ded, shalI be a contj-nuing
Iien upon such Owner or Member's Lot (or combined Lots as provided
in Section 12.14) against which the Assessments are made. Each
Assessment, together wlth such interest, and other costs, shal-l-
also be the personal obligation of the Member and/or Owner to whom
such Assessment rel-ates. The personal obligation for delinquent
payments shall not pass to an Owner or Member's successor unless
expressly assumed by him. The obligation of a Regular Member and
the Owner of the Lot to which such membership appertains for the
payment of Assessments shall be joint and several.
6.2 Purpose of Assessments. The Assessments levied by the
Association shal1 be used to promote the health, safety and welfare
of the owners and Members, to enhance the quality of life within
the Project, to preserve the value of the Property, to pay the
costs of administration of the Association and al-l- other Common
Expenses or to otherwise further the interest of the Association.
Where a Lot has separate 9ds r electr j.caI, sewer or other simj-lar
utilities service, the cost of the same shall be the personal
obligation of each owner. Maint.enance of sewer Iines serving a
single Lot, if applj-cable, shall- be the responsibility of its
Owner.AIso, a portj-on of the annual Assessments, which are
payable monthly, may be used to provide an adequate reserve fund
for the replacement, repair, and maj-ntenance of those portions of
the Common Area and al-l- facil-ities, located within the Common Area,
which must be replaced on a periodic basis, and the Board of
Directors shal1 be obligated to establish such reserve fund.
6.3 Regular Assessments.
6.3.1 Except as otherwise specifically provided
herein (including without limitation in Section 6.3.4), each Member
shall- pay as his Regular Assessment such Member's Proportionate
Share of the Common Expenses. Except as otherwise specifically
provided herein, payment of Regular Assessments shal-l- be in such
amounts and at such times as may be provided in the Articles and
Bylaws or as determined by the Association.
L5
6.3.2 Not later than sixty (50) days prior to thebeginning of each fiscal- year of the Association, the Associationshall- make availabl-e for revj-ew by each owner and Member at theAssocj-ation's office during reasonable times a pro forma operatj-ngstatement or budget for the upcoming fiscal- year which shaII, amongother thj-ngs, estimate the total Common Expenses to be incurred for
such fiscal year. Subject to the provisions of Section 6.3.4, theAssociation sha1l at that time determine the amount of the Regular
Assessment to be pai-d by each Member and notify the Member thereof.
Each Member shall thereafter pay to the Association his Regular
Assessment in monthly instal-lments. Each such instal-lment shalI be
due and payable on the date set forth in the written notice sent to
Members.
6.3.3 If the Association determines that the totaLRegular Assessments for the current year are, or will- become,lnadequate to meet all Common Expenses for whatever reason,including common Expenses in excess of the estimated Common
Expenses used in preparatj-on of the Association's budget for thatyear, the President shal-l- then immediately determj-ne theapproximate amount of such inadequacy and, with the consent of theBoard, lssue a supplemental estimate of the Common Expenses and
determine the revised amount of Regular Assessments to be paid by
each Member for the balance of the year, and the date or dates when
due. If the estimated total Regular Assessments for the currentyear proves to be excessive in light of the actual- Common Expenses,
the Associ-ation mdy, at the discretion of the Board, retain such
excess as additional working capital or reserves, reduce the amountof the Reqular Assessments for the succeedinq year, or abatecollection of Regular Assessments for such period as it deemsappropriate. No reduction or abatement of Regular Assessments
because of any such anticipated surplus may diminish the quantity
or quality of services upon which the Common Expenses for the year
in question are based.
6.3.4 Special Assessments for Capj-taI Improvements.
In addition to the annual Assessments authorized above, theAssociation may levy, in any Assessment year, a special Assessmentapplicable to that year only for the purpose of defraying, in whol-eor in part, the cost of any construction, reconstruction, repaJ-r orreplacement of a capital improvement upon the Common Area,including fixtures and personal property rel-ated thereto, provided
that any such Assessment sha1l have the assent of two-thirds (2/3)
of the votes of each cl-ass or Members who are votj-ng in person orby proxy at a meeting duly called for this purpose.
5 - 3.5 Special Assessments for Insurance.
Homeowners Association, fnc. Board of Dj-rectors shall haveauthority to assess each owner for its equal pro-rata share1i-ability, fire and extended coveraqe monthly Assessment or
The
the
of
byseparate bilJ-ing to the Owner's mortgaqe for payment from Owner's
escrow account at the sol-e discretion of the Board of Directors.
l_6
6.3.6 Uniform Rate of Assessment Both annuaf and
special Assessments must be fixed at a uniform rate for al-l Lots
and may be on a monthly basis.
Assessments on unimproved and improved Lots owned by
Declarant shal-l-, notwj-thstanding anyt.hing to the contrary 1n the
preceding sentence, be at a rate equal to twenty-fi-ve (252) percent
of the Assessment rate applicable to Lots owned by owners other
than Declarant.After any Lot under the Decl-arant's control-
becomes occupied the Decl-arant shall be required to be charged at arate equal to the ful-l- Assessment of that Lot. Declarant sha1lalso, however, underwrite any difference between actual expenses ofthe Association and Assessments levied until Association control-
passes to Cl-ass A Members.
6.3.7 Date of Commencement of Annual- Assessments:
Due Dates. The an
commence within the Property described on page 1 as to all Lots on
the first day of the month following the conveyance of the first
Lot within such Property. No Lot shaLl be conveyed, nor AssessmenL
made until after the Common Area has been deeded to the
Association.The first annual Assessment shall- be adjusted
accordinq to the number of months remainingT 1n the calendar year.
The Board of Directors shall fix t.he amount. of the annual
Assessment against each Lot at least thirty (30) days in advance of
each annual Assessment period.Written notice of the annual
Assessment shall- be sent to every owner subject thereto. The due
dates shal-l be established by the Board of Directors The
Association sha1L, upon demand, and for a reasonabl-e charge,
furnish a certificate sj-gned by an officer of the Association
setting forth whether the Assessments on a specified Lot has been
paid. A properly executed certj-ficate of the Associatj-on as to the
status of the Assessments on a Lot 1s binding upon the Assocj-ation
as of the date of its i-ssuance.
6.3.8 Effect of Nonpayrnent of Assessments: Remedies
of the Association.
-_zury
essessment not pa.
aays after tfre aue date shall bear interest from the due date at
the rate of eighteen (18%) percent per annum. The Association may
bring an action at 1aw against the Owner personally obligat.ed to
pay the same, or foreclose the lien against the property. A
delinquent Member shall- also be liable for attorneys' fees and all
other related costs incurred by the Association as a result of such
delinquency, including aII court, collection, and arbitration
costs. No Owner may waive or otherwise escape liability for the
Assessments provided for herein by non-use of the Common Area or
abandonment of his Lot Notwithstanding the foregoingT any first
Mortgagee who takes title to a Lot pursuant to the remedies
provided in its deed of trust or Mortgagiee will not be l-iable for
such Lot's unpaid dues, charges, or l-iens which accrue prj-or to the
acquisition of title to such Lot by such Mortgagee.
L7
6.4 Subordination of Lien. Any lien which arises against a
Lot by re r refusal of any owner or Regular
Member to make timely payment of any Assessment sha1l be
subordinate to the l-ien of a prior recorded First Mortgage on the
Lot, acquired in good faith and for value, except for the amount of
the unpaid Assessment which accrues from and after the date on
which a Eirst Mortgagee comes into possessj-on of or acquires tit.Ie
to the Lot, whichever occurs first (together with any interest,
cost, reasonable attorneys I fees and any late charges related
thereto), and if any l-ien for unpaid Assessments prior to the date
the First Mortgagee comes into possession of or acquires title to
the Lot has not been extinguished by the process by which such
First Mortgagee came into possession of or acquired titl-e to the
Lot, such First Mortgagee shall not be l-iabLe for unpaid
Assessments arising prior to the aforesald date and, upon written
request to the Association by such First. Mortgagee, such lien sha11
be released in writing by the Assoclation. Any unpaid Assessments
which are ext.inguished pursuant to the foregoing sentence shall-
continue to be the personal obligation of the delinquent Owner and
Regular Member and may also be reallocated by the Associ-ation among
al-l Members as part of the Common Expenses.
6.5 Exery.!_igelsrly. The following Property shal1 be exempt
from the li nts created herein:
(a) A11 Properties dedicated to and accepted by a loca1public authority; and
(b) The Common Area
6.6 No Offsets. A1I Assessments shall- be payable in the
amount specified in the Assessment or notice of Asiessment and no
of f sets against such amount shal-l- be permitted f or any reason,
including, without Iimitation, a cl-aim t.hat (a) the Association,
the Board, the Presi-dent or the Declarant is not properly
exercising its duties and powers as provided in this Declaration;(b) Assessments for any period exceed Common Expenses; or (c) a
Member has made, and elects to make, no use of the Common Areas.
6.'7 Homestead Waiver. Each Owner and Member, to the extentpermitted by lald, hereby waives, to the extent of any 1J-ens createdpursuant to this Declaration, whether such lj-ens are now in
existence or are created at any time in the future, the benefit of
any homestead or exemption Laws of the State of Col-orado or any
statute of the United States now in effectr or in effect from time
to time hereafter.
6. 8 Assessment Reserves
Decl-arant s@
maintain with the Association
the monthly instal-lment of the
. Each owner, other than the
deposit at closing and thereafter to
an amount equal to three (3) times
current annual monthly Assessment as
18
a reserve. Such reserve account shal-I not relieve an Owner from
his obligations to pay his monthly instal-l-ment of the annual
Assessment.The reserves in the Common Expenses which are
collected as part of the Regular Assessments shal-J, be deposited by
the Association in a separate bank account to be hel-d in trust for
the purposes for which they are collected and are to be segregated
from and not commingled with any other funds of the Association,
except to the extent that the Association's regularly employed
accountant deems it desirable to do otherwise on the basis of
standard accounting prlnciples in similar contexts or the l-aws, tax
or otherwise, of the State of Col-orado or the United States
relating to non-profit corporatj-ons or homeowners associations.
Such reserves shal1 be deemed a contrj-bution to the capital account
of the Association by the Members. The responsibility of the Board(whether controlled by the Declarant or the Members) shall be only
to utilize such reserves as the Board in good faith deems
reasonable, and neither the Declarant, the Board or any member
thereof shal-I have any liability to any Owner or Member or to the
Association if such reserves prove to be inadequate.
6.9 Certificate of Payment.Any person acquiring aninterest in any Lot shal-I be entitled to a certificate from the
Associatj-on setting forth the amount of due but unpaid Assessments
relating to such Lot, if dDy, and such person shal-l not be liabIe
for, nor shall any l-ien attach to the Lot in excess of, the amount
set forth in the certificate, except for Assessments which occur or
become due after the date hereof and any interest, costs,
attorneys' fees and any late charges related to such Assessments.
Nothing herein shall- be construed as requiring that the Association
take any action required hereunder in any partlcul-ar instance, but
the failure of the Association to take such action at any time
shall not constitute a waiver of the right to take such action at a
later ti-me or in a different instance.
6.10 Enforcement of Lien. The lien provided for in this
Section O rnay f e f orecf osea Uy the Assoc j-ation in any manner
provided or permitted for the foreclosure of realty mortgages or
deeds of trust or pursuant to rul-es regarding the forecl-osure of
Iiens by a homeowners' association that may exist in the State of
CoIorado.
6.11 PIe . The
Association exercise
its Assessment powers and rights provided for in this Decl-aration
as securi-ty for any obligation of the Association; provided,
however, that any such pledge shalI require the prior affirmati-vevote or written assent of a majority of all of the Members. The
Association's power to pledge its Assessment powers shall include,
but not be 1imited to, the abil j-ty to make an assignment of
Assessments which are then payable to, or which wiL1 become payable
to, the Assocj-ation; which assiqnment may then be presently
effective but shall al-Iow said Assessments to continue to be paid
t_9
to the Association and used by the Association as set forth in thisDeclaration, unless and until the Association shal1 default on its
obligations secured by said assignment.
6.1,2 Exe . Until- transfer dater ro
Assessmentffiupon,orpayabIewithrespectto,any
Lot owned by the Declarant, or an affiliate of the Decl-arant or anypartner (or such partner's successors, heirs or devisees) in theDeclarant to whom the Lot has been distributed by the Declarant (as
distinguished from having been purchased by the partner), or by
Decl-arant or other trustee for any of the aforesald Persons, until
such Lot has been conveyed by the Decl-arant (or said affiliate,partner or trustee) to a non-affiliated purchaser thereof orDeclarant leases such Lot.
5.13 Notrce to Mortgaqee. Upon request of a first Mortgaqee
ofanyr,ot@rreasonab1eCompenSationthereioie,
the Association shal-l- report to such first Mortgagee any unpaid
Assessment or other defaults under the terms of this Declaration
which are not cured by said Mortgagee's mortgagor within thirty(30) days.
6.14 Notice and Quorum for any
Section 3
@anyactionauthorizedunderSection3and4sha11be sent to all- Members not l-ess than thirty (30) days nor more thansixty (60) days in advance of the meeting. At the first suchmeeting ca11ed, the presence of Members or of proxies entitled tocast two-thirds (2/3) of aII the votes of each class of membershipshal-I constitute a quorum. If the requj-red quorum is not present,
another meeting may be called subject to the same noticerequirement, and the required quorum at the subsequent meeting
sha11 be one-half (1/2) of the required quorum at the preceding
meeting. No such subsequent meeting shall be held more than sixty(60) days fol-l-owing the preceding meeting.
6. 15
shall be
hereafter
of a deed
waiver of
Homestead.The lien ofsuperior to any homestead
be provided by Colorado orto any Lot subject to thisthe homestead exempti-on as
the Association Assessments
exemption as is now or may
Eederal- l-aw. The acceptance
Decl-aration shal-I consti-tute a
against said Assessment Iien.
SECTION 7. INSURANCE
1.1, Aut@. The Association shall purchase
and maintai pon the Common Areas including butnot limited to the insurance described in Section '7 .3.Suchpolicies, and endorsement thereon, or copies thereof shalI bedeposited with the Assocj-ation. The Association shalI advise theowner and Members of the coverage of said policies in order topermit the Owners and Members to determine which particular j-tems
are incLuded within the coverage so that the owners and Members may
20
insure themselves as they see fit if certain items are not j-nsured
by the Association.
1.2 Me . It shall be each owner's or
Memberrs resp for himself insurance on hj,s own
Lot, if dny, his additions and improvements thereto, furnishings
and personal property therej-n, his personal property stored
elsewhere within the Project, his personal liability to the extent
not covered by the public liability insurance obtained by the
Association and such other insurance which is not carried by the
Association as the Owner or Member desires. No Owner or Member
shall- maintain any insurance, whether on his Lot or otherwise,
which would timit or reduce t.he insurance proceeds payable under
the casualty insurance maintained by the Association in the event
of damage to the improvements or fixtures on the Common Areas.
1 .3 Cove_rgge. The Association shall maintain and pay for, _policies of insurance as follows:
7.3. 1 A multi-periJ- type policy covering all of the
Common Areas provi-ding, as a minimum, fire and extended coverage,
and aI] other coverage in kinds and amounts customarily acquired or
required for projects similar in construction, l-ocation and use,
including, without limitation, perils normally covered by an "a]1-risk" policy, 1n an amount determined by the Association.
7 .3.2 A policy of comprehensive public liability
insurance covering all of the Common Areas in an amount determinedby the Association for personal i-njury or death and/or property
damage. The scope of such coverage shal-l- inc1ude aII other coverage
in the kinds and amounts customarily acquired or required forprojects similar in construction, location and use, including,
without limitation, liability for nonowned and hired automobiles,
liability for property of others, liability arising in connection
with the operatj-on, maintenance or use of the Common Areas,
liability assumed by contract or contractual liability, and
Iiability arising out of any employment contracts of the
Association.
7.3.3 The Association shal-l, dL its election, obtain
fidelj-ty bond coverage against dishonest acts on the part of
directors, officers/ managiers, trustees, agents, employees or
vol-unteers responsible for handling funds belonging to or
administered by the Association. If funds of the Assocj-ation are
handl-ed by a management agent, then fidelity bond coverage shall
also be obtained for the officers employees and agents thereof
handling or responsible for Association funds. The fidelity bond
or insurance must name the Associati-on as the named insured and
shal-I be written to provide protection in an amount not l-ess than
the lesser of (a) one-half times the Association's estimated annual-
operating expenses and reserves, (b) a sum equal to three (3)
months I agqregate Reqular Assessments plus reserves r ot (c) the
2L
estimated maximum amount of funds, including reserves, in the
custody of the Associatj-on (and its management agent) at any one
time. fn connection with such coverager drr appropriate endorsement
to the policy to cover any person who serves without compensation
shall be added j.f the policy would not otherwise cover volunteers.
Such coverage must name the Association as an obligee.
1.3.4 A worker's compensation policy, if necessary,
to meet the requirements of 1aw.
7.3.5 A policy of "directors and officers" liability
insurance if determined necessary by the directors of the
Association.
7.3.6 Such other insurance, and in such amountsr ds
the Association shal-l- determine from time to time to be desirable.
1.4 Required Provisions. The insurance policies purchased
by the Associatj-on shall, to the extent reasonabl-e and available,
contain the fo1lowinq provisions:
7 .4.1 The coveraqe afforded by such policies shall-
not be brought into contribution or proration with any insurance
which may be purchased by an Owner, Member or First Mortgagee.
7 .4.2 The conduct of any one or more owners or
Members shal-l- not constitute grounds for avoiding liability on any
such policies.
7.4.3 There shall- be no subrogation with respect to
the Association, its agents or employees, Owners, Members, or
members of their households or families and employees, and each
Mortgagee of all or any part of the Property or of any Lot, or the
policy(ies) should name said persons as additional- insureds; and,
each policy must contaj-n a waiver of any defenses based on co-
insurance or on invalidity arising from the acts of the insured.
'7.4.4 A "severability of interest" endorsement shal1
be obtained which shall preclude the insurer from denying the claim
of any Owner or Member because of the conduct or negligent acts of
the Associatlon and its aqents or other Owners or Members.
7.4.5 Any "no other insurance" clause shall- exclude
insurance purchased by Owners, Members or First Mortgaqees.
1
or neglectwithin the
Associ-ationportion of
.4 .6 Coverage must not be prejudiced by (a) any
of owners or Members when such act or neglect is
controf of the Association or (b) any failure of
to comply with any warranty or conditj-on reqardi-ng
the Project over which the Association has no control
act
not
the
any
22
7.4.7 Coverage may
modified without at 1east thirtyas the Association may reasonablynotice to the Association.
7.4.9
entered into by the
not be canceled or substantially(30) days (or such lesser period
deem appropriate) prior written
1.4.8 Any policy of property insurance which gives
the carrier the right to el-ect to restore damage in l-ieu of a cash
settlement must provj-de that such election is not exercisabl-e
without t.he prj-or written approval of the Association, or when in
conflict with the insurance trust provisions contained herein, or
any requirement of l-aw.
A recoqnition of any insurance trust agreement
Association.
Each hazard insurance policy shal-l- be written'l .4.10
by a hazard j-nsurance carrier which has a financial rating as
designated in Best's Key Rating Guide of Cl-ass VI or better, or if
such rating service be discontinued, an equj-va1ent. rating by a
successor thereto or a similar such rating service. Each insurance
carrier must be specificalJ-y licensed or authorized by law to
transact busi-ness within the State of Col-orado.
1 .4.L! Pol-icies shal-1 not be utilized where, under
the terms of the carrier's charter, Bylaws or poI1cy, contributions
or assessments may be made agaj-nst the Owners, Members or the
Association or Ioss payments are continqent upon action by the
carrier's board of directors, policy hol-ders, or members.
1.5 Non . Notwith-
standinq t nce coverage
as stated herein, neither the Association nor any Board member nor
the President of the Association nor the Declarant shall be li-able
to any Owner, Member, Mortgagee or other Person if any risks or
hazards are not covered by insurance or if the amount of insurance
is not adequate, and it shal-l- be the responsj-bility of each owner
and Member to ascertaj-n the coverage and protection afforded by the
Association's j-nsurance and to procure and pay for such additional
insurance coverage and protection as the Owner or Member may
desire.
1.6 Premiums. Premiums upon insurance policies purchased by
the Association shalI be paid by the Association as a Common
Expense, except that the amount of increase over any annual or
other premj-um occasioned by the use, misuse, occupancy or
abandonment of a Lot or its appurtenancesr or of the Common Areas,
by an Owner or Member, shafl be assessed against that particular
Owner or Member.
7 .7 Insurance Cl-aims. The Association is hereby irrevocably
appointed@subjecttotheprovJ.sionscontainedherein, to adjust al-1 claims arising under insurance policies
23
purchased by the Association and to execute and del-j-ver releases
upon the payment of cl-aims, and to do a1I other acts reasonably
necessary to accomplish any of the foregoing. The President of the
Association has ful-l- and complete power to act for the Association
in this regard and ildy, at his discreti-on, appoint an authorized
representative r or enter into an insurance trust agreement wherein
the trustee shaI1 have authority, to neqoti-ate fosses under any
policy purchased by the Association.
7.8 Benefit.Except as otherwise provided herein, al-1
insurance pofici-es purchased by the Association shaIl be for the
benefit of, and any proceeds of insurance received by the
Association or any insurance trustee shal-l be hel-d or disposed of
in trust for, the Association, the Owners or the Members, as their
interests may appear.
SECT]ON 8. DAMAGE AND DESTRUCTION OF COMMON AREAS
8.1 Duty of Association. In the event of partial or total-
destruction of the Common Areasr or any improvements thereon, it
shall be the duty of the Associatlon to restore and repair the same
as promptly as practical pursuant to this Section B. The proceeds
of any casualty insurance maintained pursuant to this Decfaratlon
shalI be used for such purpose, subject to the prior rights of
Mortgagees whose interest may be protected by said policj-es.
Restoration and reconstruction under this Section B shall refer to
the restoration and reconstruction of both constructed improvements
and natural terrain.
8.2 Automatic Reconstruction. In the event that the amount
avail-able f ny insurance policies for such
restoration and repair, together with any uncommitted or unreserved
capital of the Associatj-on, shalI be at Ieast seventy-five (75%)
percent of the estimated cost of restoration and repair, a
Reconstruction Assessment aqainst each Member and its Proportionate
Share, and/or the Owner of the Lot to which a Regular Membership is
appurtenant, may be levied by the Association to provide the
necessary funds for such reconstruction in excess of the amount of
the funds avaj-Iable for such purpose.The Association shall-
thereupon cause the damaged or destroyed Common Areas to be
restored to substantiatly the condition the Common Areas were in
prior to the destruction or damaqe.
8.3 Vote of Members. In the event that the amount availabLe
fromthepwinsurancepo1iciesforsuchrestoration
and repair, together with any uncommitted or unreserved capital of
the Association, shall be less that seventy-five ('15%) percent of
the esti-mated cost of restoration and repair, the Common Areas
shall be replaced or restored unl-ess two-thirds (2/3) of the
Members, dt a special meetingr held for such purpose, disapprove of
such replacement or restoration. If the Members do not disapprove
the proposed replacement or restoration, the Association shaLl Ievy
24
a Reconstruction Assessment against each Member in its
Proportionate Share, and/or the owner of the Lot to whi-ch a Regular
Membership is appurtenant, and cause the damaged or destroyed
Common Areas to be restored as closely as pract.ical to its former
condition prior to the destruction or damage.
insurance proceeds remain after any reconstructj-on by the
Association pursuant to this Section, the Association, in its sole
discretion, may retain such sums in the general funds of the
Associatj-on or may distribute all or a portion of such excess to
the Members in their Proportionate Shares, subject to the prior
rights of Mortgagees whose interest may be protected by the
insurance policies carried by the Association. The rights of a
Member, an Ownerr or the Mortgaqee of a Lot as to such distribution
shall- be governed by the provisions of the Mortgage encumlcering
such Lot.
8.5 Use of Reconstruction Assessments All- amountscollected as Reconstruction Assessments shalI only be used for thepurposes set forth in this Section B and shall be deposited by theAssociation in a separate bank account to be held in trust for suchpurposes. Such funds sha11 not be commingled wlth any other fundsof the Association and shal1 be deemed a contribution to thecapital account of the Assocj-ation by the Members.Any
Reconstruction Assessment shal-I be secured by the lien provj-ded for
in section 6.
8.6 Contract for Reconstruction.In the event theAssociatlon undertakes the repair and restoration of the CommonAreas, the Association shall contract with a licensed contractor or
Iandscaper who may be required to post a suitable performance or
completion bond. The contract with such contractor or contractors
shall provj-de for the payrnent of a specified sum for completion ofthe work described therein and shalI provide for periodic
disbursements of funds, whj-ch shall be subject to the prior
presentation of an architect's, or similar, certificate containing
such provisions as may be appropriate in the circumstances and
deemed suitable by the Association.
8.4 Excess Insurance Proceeds
8.7 Insurance Proceeds Trust
fn the event any excess
Upon receipt by theAssociation of any insurance proceeds, the Associatj-on may causethe insurance proceeds to be paid directly to a bank, savings andIoan association, or trust company located in Garfietd County,
Colorador ds designated by the Association as trustee (the
"Insurance Trustee"). Such funds shall be received, held and
administered by the Insurance Trustee subject to a trust agreementconsistent with the provisions of thls Declaration and which shaLl-
be entered into between the fnsurance Trustee and the Association.
Disbursements to contractors performing any repair or reconstruc-
tion upon the Property shal1 be made periodically as the work
25
progresses in a manner consistent with procedures then followed by
prudent lending institutions in Garfield County, Colorado.
SECTION 9 CONDEMNATION
ff at any time or times during the contj-nuance of ownership
pursuant to this Declaration a1l- or any part of the Common Areas
shall be taken or condemned by any public authority or sol-d or
otherwise disposed of in l-ieu of or in avoidance thereof, the
fo1lowing provisions of this Article sha1l apply:
9.1 Proceeds. AlI
therefrom, the sum of which
Award", sha11 be payable to
compensatlon damages or other proceeds
is hereinafter cal1ed the "Condemnationthe Association.
9.2 Complete Taking.
9.2.1 In the event that all- of the Common Areas are
taken or condemned or sol-d or otherwise disposed of in lieu of or
in avoidance thereof, the Condemnation Award shaLl be apportioned
among the owners equally and payment of said apportloned amounts
shall be made payable to the owner and the flrst Mortgagee on his
Lot jointly,
9.2.2 On the basis of the principle set forth in the
.l-ast preceding paragraph, the Association shall determine as soon
as practj-cable the share of the Condemnation Award to which each
Owner is entitled.
9.3 ParEiel_ ig]<irrg. In the event t.hat less than the entire
Common Area is taken or condemned or sold or otherwise di-sposed of
in lieu of or in avoidance thereof, the Condemnation Award shall
first be applied by the Association to the rebuilding and
replacement of those j-mprovements on the Common Area damages or
taken by the condemning public authority, unless seventy-five (75%)
percent of the Owners and the first Mortgagees of each Lot agree
otherwise. Any surplus of the award or other portion thereof not
used for rebuilding and replacement shal-l be used by the
Association for the future maintenance of the Common Area.
9.4 Mor@. The Association shall give any
first t"tortgagee of a Lot timely written notice of any condemnation
proceedings or threat thereof and destruction.
SECTION 10. MATNTENANCE, REPAIRS AND REPLACEMENTS
10.1 Owner's ResponsibiliLy. Each Owner shall furnish and be
responsib1ef@wnexpenSe,a11ofthemaintenance,
repairs and replacements within his own Lot. Each Owner shaII, dt
his sofe cost and expense, repair his residence, keeping the same
in a condition comparable to the condition of such resj-dence at the
26
time of its initial construction, excepting only normal wear and
tear.
1,0 .2 Ma j-ntenance of Common Areas . Except as otherwiseprovided aintenance, repaj-rs and
replacements of the Common Areas shall be furnished by the
Association as part of the Common Expenses, subject to the Bylaws
and Association Rul-es . lf, due to the act or neglect of an owner
or Member, or the invitee, guest or other authorj-zed visj-tor of
either, or an Occupant of such owner or Member's Lot, damage shal-l-
be caused to the Common Areas or to a Lot or Lots owned by others,
or maintenance, repairs or replacement shall be required whlch
would otherwise be a Common Expense, then such owner or Member
shall pay for the damage and for such maintenance, repairs and
replacement as may be determj-ned necessary or appropriate by the
Association, to the extent not covered by the Association's
insurance. Such obligation shall- be a Special Assessment secured
by the lien provided for in Section 6.
10.3 Owner's Obligations to . If all or any portion
of a resid y fire or other casualty,
it shall be the duty of the owner thereof, with all due diligence,
to rebuild, repair, or reconstruct such resldence in a manner which
will substantially restore it to its appearance and conditionimmediately prior to the casualty.Reconstruction shal-1 be
undertaken with three (3) months after the damage occurs, and shall
be completed within twelve (12) months after the damaqe occurs,
unless prevented by causes beyond the control- of the Owner or
Owners.
If construction shall not begin within three months, the
structure shal1 be presumed to be a public nuisance which sha11 be
so declared by Garfield County District Court upon peti-tion by theAssociation. Such declarat.ion shalI aIIow razing of the structure,
the costs of which shal-l- be borne by the lot owner and paid by theAssociatlon to be reimbursed as a special assessment by the lot
owner.
10.4 Right of Access. An authorized representative of the
Association, and all contractors, repairmen or other agents
employed or eng'aged by the Association, shall be entitled to
reasonable access to each of the Lots as may be required in
connection with maintenance, repairs or replacements of or to the
Common Areas or any equipment, facil-itles or fixtures affecting or
servJ-ng other Lots and the Common Areas t or to perform any of theAssociation's duties or responsi-bil-ities hereunder.AIIconstruction activities shalI access the Project through aconstruction entry if same is provided.
10.5 Construction in Common Areas. Nothing shall be altered
in, constructed oLr or
written consent of the
removed from the Common Area except on the
Association and the Desiqn Revlew Committee.
27
SECTION 11 ARCHITECTURAL AND LANDSCAPE CONTROL
11.1 Appointment of Design Review Committee. The Association
shall have a Design Review Committee consisting of not less than
one (1) nor more than three (3) personsr ds specified from time to
time in the Design Guidelines by resol-ution of the Board. The
Declarant shall initially appoint the members of the Design Review
Committee. The Declarant shall retain the right to appoint, augmentor replace all- members of the DesJ-gn Review committee until the
date of Transfer or as otherwise provided in the Design Guidelines.
Thereafter, members of the Design Review Committee shall- be
appointed by the Board as vacancies arise. Persons appointed to
the Desi-gn Review Committee, other than those persons appointed byDeclarant, must be Members or satisfy such other requirements as
may be set forth j-n the Design Guidelines.The Declarantvoluntarily may (but shal-I not be required to) permit the Members
to appoint one or more members of the Design Review Committee at
any time. Decisions made by the Design Review Committee shall becarried by a vote of a majority of the Members unless otherwisespecified herein, or in the Design Guidelines of the Association
Rul-es.
1,1,.2 Desrgn Guidelines. The Design Review Committee shall
estab1ish@ura1ru]-es,iegu1ations,restrictions,
architectural standards and design guideJ-ines (the "DesignGuidelin€s"), which the Design Review Committee mdy, from time totlme in its sole discretion, amend, repeal or augment. The Design
Guidel-ines are hereby incorporated herein and shal-I be deemed to bea part of this Declaration and shall- be binding on al-I owners,
Members or other Persons as if expressly set forth herein. A copyof the current Design Guidelines shall at all tlmes be a part ofthe Association's records. The Design Guidelines may include,
among other things, the following restrictions and Limitations:
11,.2.1, Procedure for submittal of all constructionplans to Design Review Commi-ttee.
11,.2.2 Tlme limitations for the completion, within
specified periods after approval and coflrmencement of constructionof the improvements for which approval is required pursuant to the
Design Guidelines.
]-1.2.3 Designation of a "building envelope" within aLot, thereby establ-ishing the maximum developable area of the Lot.Accessory buildirrgs may be excluded from the building envelope if
approved by the Design Review Committee. All structures shatl be
sited on each lot by the Design Review Committee. Unl-ess varied bythe provisions of Paragraph 21.4 hereafter, no structure on any lot
shal-I be constructed closer than twent.y-five (25) feet to any sideor rear l-ot l-ine or cf oser than f if ty (5 0 ) f eet f rom any f ront
l-ine. In siting a structure, the Design Review Committee shall-
28
approve its l-ocation as near to the spot selected by the Owner as
shall not impede or restrict the view plane of other Owners.
1,1.2.4 Approval of plans and specifications prior to
the commencement of all- construction. No building shal-l- be erected
by means of other than new construction, it being the purpose of
this covenant to ensure that old buildings wlll not be moved from
previous locatj-ons and placed upon a lot. AlI structures shall be
constructed of either brick, stone, lumber, stucco, or a
combination thereof. The use of cinderblock shall- noL be allowed
unless it is faced with another material herein approved. A11
driveways and parking areas shalI have paved surfaces. No
structure shall be placed or erected upon any l-ot which is, ever
has been, or could be made the subject of a specific ownership tax
as now defined 1n Title 42 of the Colorado Revised Statutes, nor
shal-I structures constructed in the fashion and manner as mobile
homes or manufactured housing be al-l-owed.
77 .2 .5 Conformity of completed improvements to plans
and specifications approved by the Design Review Committee;
provj-ded, however, as to purchasers and encumbrancers in good faith
and for val-ue, unless notice of noncompletion or nonconformance
identifying the violating Lot and specifying the reason for the
notice, executed by the Design Review Committee, shal-l be recorded
with the County Recorder of Garfield, and given to the owner of
such Lot within one (1) year of the expiration of the time
Iimitation described in Section 1,1.2.2 above, or, if later, within
one (1) year following completion of the improvement, or unless
Iegal proceedings shal-l- have been instituted to enforce compliance
or completion within said one (1) year period, the completed
improvements shall- be deemed to be in compliance with plans and
specifications approved by the Design Review Committee and in
compllance with the architectural- standards of the Associatj-on and
t.his Declaration, but only with respect to purchasers and
encumbrancers in good faith and for value.
r.:-..2.6 The Design Review Committee shall list the
varieties of plants that shall be permitted to be planted on any
lot. A list of such plants sha1l be kept on file at al-I times by
the Homeowners Association. The Homeowners Association mdy, from
time to time, amend the Iist of permitted plants to add or delete
certain varieties.
71- .2 .1 The Design Review Committee or the Homeowners
Association may make rules prohibiting the use of a1I chemj-cal
pesticides and herbicides during certain peri-ods of the year, which
rules may lnclude a provJ-sion for Special Assessments to be made in
the event of violation of this Section and Section 11.2.6.
L]-.2.B Such other l-imitations and restrictions as the
Board or Design Review Committee in its reasonabl-e discretion shall
adopt, including, without limitation, the regulation of al-1
29
exterior lighti-ng, landscaping (including without l-imitation
absolute prohibition of certain types of landscapi-ng, trees and
plants), construction, reconstruction, exterior addition, change or
alteration to or maintenance of any buildinq, structure, foundatj-on
system, wal-1 or fence, including, without limitation, the nature,
sty1e, shape, height, materials, exterior co1or, surface texture,
location of any such improvement, and prohibj-tion of construction
during certain periods of the year.
1,1.2.9 Special assessments for violations of these or
any other restrictions that the Design Review Committee creates.
11.3 General Provisions.
11.3.l-
reasonable fees
speci f icat j-ons .
The Desigrn
in connection
Review Committee may assess
with its review of plans and
77.3 .2 The Design Review Committee may delegate its
plan review responsibil-ities, except final review and approval as
may be required by the Design Guidelines, to one or more of its
members or architectural consuLtants retained by the Design
Committee. Upon such delegation, the approval or di-sapproval of
pJ-ans and specifications by such members or consuftants shall be
equi-valent to approval or disapproval by the entire Desi-gn Review
Committee.
11.3.3 The address of the Design Review Committeeshall be the address established for griving notice to the
Association, unless otherwise specified in the Design Guidel-ines.
Such address shal-l- be the place f or the submittal- of plans and
specifications and the place where the current Design Guidelines
shall be kept.
11.3. 4 The establ-ishment of the Design Review
committee
shall not
owners to
specified
disapprove
accordance
specified
days.
and the procedures herein for architectural approval
be construed as changing any rights or restrictions upon
maintain or repair their Lots as may otherwise be
in this Declaration, the Bylaws or Association Ru1es.
11.3.5 The Design Review Commlttee shaLl- approve or
any plans and specifications submitted to it in
with the Design Guidelines wj-thin such period as may be
in t.he Design Guidelines within a maximum of thirty (30)
l-1.4 Approval- and Conformity of Plans. No building, fence,
wall or other structure or improvement of whatever type shall be
commenced, erected or maj-ntained upon the property, nor shal-l- there
be any addition to or change to the exterior of any residence or
other structure, improvement, or Recreatlon facility upon a Lot or
the landscaping, grading or drainage thereof, including, without
30
limitation, the painting (other than painting with the original or
subsequently approved color of paint) of exterior walIs, patio
covers and fences, except in compliance with plans and
specifications therefor which have been submitted to and approved
by the Design Review Committee in accordance with the Design
Guidelines as to harmony of externaf design and location in
relation to surrounding structures and topography. In the event
that the Declarant or its successors aflows the common area to be
open to the general public, fences around an Owner's property in
conformance with Design Guldelines shal-l be speciflcally permitted.
11.5 Non-Liability for Appr . Plans and speci-fi-
cat j-ons s iew Committee as to
sty1e, exterior design, appearance and location, and are not
approved for engineering design or for compl.i-ance with zoning and
building ordinances, and by approving such plans and specifications
neither the Design Review Committee, the members thereof, the
Association, any Member, the President, the Board nor the Declarant
specifications, (c) the development, or manner of development of
any property within the Prince Creek Estates r or (d) the execution
and filing of an estoppel certificate pursuant to the Design
Guidelines, whether or not the facts therein are correct; provi-ded,
however, that such action, with the actual- knowledge possessed by
him, was taken in good faith. Approval of plans and specifications
by the Design Review Committee is not, and shal-I not be deemed to
be, a representati-on or warranty that said plans or specifications
comply with applicable qovernmental ordinances and building codes.
11.6 fnspection and Recording of Approvaf. Any member or
authorized consultant of the Design Review committee, or any
authorized officer, director, employee or agent of the Association,
may at any reasonabfe time enter, without being deemed guilty of
trespass, upon any Lot after reasonable notice as provided herein
to the owner in order to inspect improvements constructed or being
constructed on such Lot to ascertain that such improvements have
been or are being built in compliance with the Design Guidelines
and this Declaration. The Desiqn Review Committee sha1l cause such
an inspectj-on to be undertaken within thirty (30) days of a request
therefor from any Owner as to his Lot, and if such inspection
reveals that the improvements Iocated on such Lot have been
completed in compliance with this Section 11 and the Design
Guidelines, the Design Review Committee shall provide to such Owner
a notice of such approval in recordable form which, when recorded,
sha11 be conclusive evidence of compliance with the provisions of
this Section 11 and the Desj-gn Guidelines as to the improvements
described in such recorded notice, but as to such improvements
only.
11.7 Reconstruction of Common Areas. The reconstruction by
the Associ truction by casualty or
otherwise of any Common Areas which is accomplished in substantj.al
3l_
compliance for such Common Areas shal-l- not require complj-ance with
the provisions of this Section 11 or the Design Guidel-ines.
1l-. 8 Addition .The Board may
promulgate as a part. of the DesJ-gn
archj-tectural and landscape standards,
deems to be appropriate and as are
Declaration.
Guidelines such additionalrules and regulations as itnot in confLict with this
11.9 Reservation of Rj-ght to Exercise by Decl-arant. Notwith-
standing any othrer p he contrary
contained j-n this Declaration, the Articles, the Bylaws, the Rules
and Regulatj-ons or the Regrulatory Agreement, Declarant reserves the
right to exercise the rights, duties and functions of the
Associatj-on's Desiqn Review Commit.tee until such tj-me as all of the
Lots situated on the Property, including any Property and Lots
annexed thereto and made subject to this Declaration, have been
sold and conveyed by Declarant.
SECTION 12. USE AND OCCUPANCY RESTRICTIONS
12.l Residential Use. Each Lot may be used only for resi-
dential purposes ana none other.No business or commercial
building may be erected or any Lot and no business or commerclal
enterprise or other non-residential- use may be conducted on any
part thereof except as approved under the plat or subdivision
Agreement. No temporary buildj-ngs, structures or trail-ers may be
erected, placed or maintaj-ned on any Lot except as expresslypermitted by, and in compliance with the Desiqn Guidel-ines. Nothing
herein contained shall be deemed to limit the Declarant I s rights as
set forth in Section 15.
L2.2 Violation of Law or Insurance.
permit
Common
thereon
anytninq @ in
Areas which will result in the
No Owner or
his Lot or in
cancelLation
any Iaw.
Member shallor upon any
of insurance
or which would be in violation of
1,2.3 Signs. No sign of any kind shal-l- be displayed to the
public view or from any Lot or any Common Areas without the
approval of the Assocj-ation or the Design Review Committee, except:(a) such signs as may be used by Decl-arant in connection with the
development and sal-e of Lots in the Project; (b) such signs as may
be required by 1ega1 proceedings, or the prohibition of which is
precluded by 1aw, (c) such signs as may be required for traffic
control and regul-ation of Common Areasi ort (d) one "for Sa1e" sign
which sha11 not exceed two feet by three feet.
72.4 Anima1s. No animals, i-ncluding horses or other domestic
farm animal-s, fowl- or poisonous reptiles of any kind may be kept,
bred or maintained in any Lot or in or upon any Common Area, except
a reasonable number of commonly accepted household pets in
accordance with the Association Rules. No animals shal-I be kept,
32
bred or raised within the Project for commercial purposes. In no
event shal-1 any domestic pet be allowed to run free away from its
owner's Lot without a leash, or so as to create a nuisance.
L2.4.1 Lot Owners shall be entitled to keep a dog on
their property pursuant to the following restrictions and
llmitations:(a) No more than one (1) dog shal-l-
l-ot Owner at any time on any one lot.
(b) Dogs shall be kept under the
Owner at all times and shall not be permitted to
cause a nuisance in the Subdivision.
be kept by any
control of the
run free or to
(c) Dogs shall not be all-owed to bark
contj-nuously, which shal1 be defined as barking for a continuous
15-minute period.
(d) Dogs shall be leashed or kenneled at all
times. Metal fencing will be allowed for the purposes of kenneling
a dog. Location of kennels shal-l- be subj ect to review of the
Design Revj-ew Committee. Kennef s shal-1 be installed prior to
issuance of a Certificate of Occupancy.
(e) Al-l- ]ot owners shal1 keep animals reasonably
c]ean, and all lots shal-l be free of refuse, and animal waste.
(f) The Association shall assess and enforcepenalties against Owners violating the restrictions applying to
animal-s as fol-l-ows: One Hundred DoIIars ($100 ) f or the f irst
violation committed by an Ownerrs dog; Two Hundred Doll-ars (5200)
f or the second vj-ol-ation; Three Hundred DoIlars ($300 ) for the
third violation; and for each succeedinq viol-ation the fine
increases 1n One Hundred Dol-Iar ($100) increments. Should any dog
chase or molest deer, elk, poultry, or any domesti-c animals or
persons r or destroy or disturb property of another, the Association
shal-l- be authorized to prohibit the property Owner or resident from
continuing to maintain the offending animal on his property and may
dispose of that anj-mal, if necessary, to protect wildlife or other
Owner's domesti-c anlmals, persons or property. The offending dog
owner shall be provided wrj-tten notice of such action at l-east two(2) days before disposal- occurs. Within such two*day period, the
of fending dog shal-l be kennel-ed at a licensed kennel. AI1 charges
associated with action taken by the Association may be assessed
against either the 1ot Owner and/or the dog owner, or both, at the
Association's sofe option.
1,2.5 Nuisances No owner or member shall- permit or suffer
anything to be done or kept about or withj-n his Lot r or on or about
the Property, which wiII obstruct or interfere with the rights of
other Owners, Members, occupants or Persons authorized to the use
and enjoyment of the Common Areas, or annoy them by unreasonable
33
noises or otherwj-se, nor wiII he commit or permlt any nuisance or
commit or suffer any iI1ega1 act to be committed therein. Each
owner or Member, shal1 comply with the Association Rules, the
requirements of al-1 heal-th authorj-ties and other governmental-
authoritles having jurisdiction over the Property.
12.6 Boats, RVrs and Motor Vehicles. Except as specifically
permittea Uy o boats, trailers, buses,
motor homes, campers, snowmobiles, four-wheelers, or other vehicles
shall be parked or stored in upon a Lot except within an encl-osed
garaqe or fuI1y screened area as permitted by the Design
Guidelines; (b) no vehicle shal-l- be repaired or rebui]t in any Lot
or upon the Common Areas; and, (c) nothing shal-l be parked on the
Streets for longer than 24 hours. The Association may remove, or
cause to be removed, any unauthorized vehicle at the expense of the
Owner thereof in any manner consistent with Iaw.
72.1 Lights.No spotlights, flood lights or other high
intensity lighting sha1l be placed or utilized upon any Lot, which
in any manner will al-low liqht to be directed or reflected upon
Common Areas, or any part thereof, or any other Lot, or any
neighboring property. Security lighting is subject to this
provision and must be shielded and dlrected downward.
12.B Antennas. No radio, tefevision or other antennas of
kindorna-ture,ordeviceforthereceptionortransmission
radio, microwave or other simj-1ar signals, shaIl be placed
maintained upon any Lot except as may be permitted by
Association Rules or j-n accordance with the Desiqn Guidelines.
fully shieLded satel-lite dish is acceptable.
any
of
or
the
A
L2.9 Garbaqe. No rubbish, garbage or trash, or other waste
material- snaff ne kept r or permitted on any Lot so as to be visible
f rom another Lot or the Common Areas. No incinerators shal-l- be
kept or maintained in any Lot.No refuse pile, garbage or
unsi-ght1y objects shall be allowed to be placed, accumulated or
suf f ered to remain anlrwhere on a Lot. Trash removal shall- be
accomplished through contract negotiated by Association Directors
and bil-l-ed as part of the regular assessment.
72 .70 Safe Condition.
-
Without limiting any other
provision in this secti-on, each Owner shall maintaln and keep his
Lot at all times in a safe, sound and sanitary condit.ion and repai-r
and sha1l correct any condition or refrain from any activity which
might interfere with the reasonable enjoyment by other owners or
Members of their respective Lots or the Common Areas.
1_2 .1,1 Fires. Other than commercially manufactured
barbecues or properly constructed barbecue pits or gri11s, and
firepits in compliance with the Association Rules and the Design
Guidelines, or as otherwise expressly permitted in the Assocj-ation
Ru1es, ho open fires shaI1 be permitt.ed on the Lots nor shal-l- any
34
other similar activity or condition be permitted which would tend
to increase the insurance rates for the Common Area, or for other
Owners.
]-2.72 Cl-othes Dryj-nq Area. No portion of any Lot shall- be
used as a drying or hanging area for laundry of any kind unl-ess
totally screened from view, it being the intention hereof that all
such facilities shal-1 be provlded within the buildings to be
constructed on each Lot.
]-2.L3 Swimming Poof s. No swimming pools or tubs shal-I be
placed outside of the constructed building envelope on any l-ot,
except as may be inteqrated-with the qeneral construction and as
may be permitted by the Association Rules or in accordance with the
Design Guidelines.
12.1,4 Weed Control. It shall- be Lot owners
responsibility to controf aff weeds and thistle on their entire
Iot. Failure to control all- weeds and thistle can be remedied by
the HOA and a special assessment issued.
72.75 No Obstruction to Drainage.No owner shall
erect, construct, maintain, permit or allow any fence or other
improvement or other obstruction which would interrupt the normal
drainage of the l-and or within any area designed on a PIat, or
other binding documentr ds a "drainage easement", except that, with
the prior consent of the County and the Design Committee, non-
permanent structures, including fencesr ildy be erected in those
areas which contain only underground cl-osed conduit storm drainage
facilities.
72.76 Rental of Lots. An owner who feases his Lot to any
Person shall be responsibte for assuring compliance by his lessee
with all of the provisions of this Declaration, the Articles,
Bylaws, Association Rules or Desi-qn Guidelines, aII as amended and
supplemented from t.ime to time, and shafl- be jointly and severally
responsible for any violations by his lessee thereof.
12.11 Sewage Dj-sposal.Each resi-dence shal1 contain at
Ieast one (1) fuIly-equipped bathroom.AlI sewage shall- be
disposed of by means of an individual sewage treatment facility or
septic tank and leachfield approved by the Colorado State Health
Department or 1oca1 health aqencies havinq jurisdiction thereof.
Owners shall mai-ntain such treatment facilities in good operating
condition.
72.78 Resubdivision Prohibited. The resubdivision of a
l-ot by an individual lot Owner is prohibited. Boundary line
adjustments which do not result in the creation of additional- Iots
shall not constitute resubdivision.
35
7
l-2.L9 Fences and Hedges. The Design Review Commi-ttee
must approve @tion of aI1 fenci-ng prior to
installation. Only wooden fencing shalL be permitted within the
Subdivision, with l-imited exceptions pertaining specifically to
gardens, kennels, or other elements where a wooden fence would not
serve the purpose desired, be 1t to keep animal-s in an encfosed
area or to keep wi-ldlife out of an enclosed area. Barbed wire
fencing shal-l- be prohibited. The Design Review Committee shaII
consider how the fencing wlII affect wil-d1ife. Wood fencing shall
not exceed forty-two (42) j-nches in height, shal-I not have more
than two (2) horizontaf po1es, and the bottom pole shal-l- be at
least twenty-four (24) inches off the ground. No fences or hedges
shal-I be constructed, grown or maintained on any 1ot higher than
six (5) feet above ground level-, but this restriction sha1l not
apply to patio fences attached to dwellings.
1,2 .20 Woodburning Stoves and Fireplaces. Each l-ot within
t.he Subdivision shall- be prohibited from operating or install-ing an
open hearth sol-id fuel burning devj-ce or a woodburning stove.
Dwelling shall be entitled an unrestrlcted number of natural gas
burning fireplaces or appliances.
]-2.21 Enforcement.The Association or it authorized
agents may enter any Lot in which a violation of these restrictions
exists and may correct such viol-ation at the expense of the Owner
of such Lot. Such expenses, and such assessments as may be imposed
pursuant to the Bylaws, Association RuIes or Desiqn Guidelines,
shall- be a Special Assessment secured by a l-ien upon such Lot
enforceable in accordance with the provisions of Section 6 hereof.
AIl remedi-es described in section 74 hereof and al-L other rights
and remedies avail-abl-e at law or equity shall be avail-able in the
event of any breach by any Owner, Member, Occupant or other Person
of any provj-sion of this Section 12.
12 .22 Modification. The Board may modify or waive the
foregoing restriction or otherwise restrict and 'reg'ulate the use
and occupancy of the Property and the Lots by reasonable rules and
regulations of general application adopted by the Board from time
to time which shall be incorporated i-nto the Association Rules.
SECTION 13. RIGHTS OF FIRST MORTGAGEES
l-3. 1 General Provisions. Notwithstanding and prevailing over
anyother@sDec1aration,theArtic1es,By1aws,
Association Rules or Design Guidelines, the following provisions
sha1l apply to and benefit each holder of a First Mortgage upon a
Lot.
13.2 Lirbrlity for Assess*e . A First Mortgagee who comes
into possessi owner of a mortqaged Lot by
vj-rtue of foreclosure of the Mortgraqe, or through any equivalent
proceedings, such as but not limited to the taking of a deed or
36
assigrunent in ]ieu of foreclosure or acqui-ri-ng t.itle at a trustee's
sale under a first deed of trust, or any third (3rd) party
purchaser at a forecl-osure sale or trustee's sale, will not be
Iiable for such Lotrs unpaid dues, charges or Assessments which may
accrue prior to the time such Eirst Mortgagee or third (3rd) party
purchaser comes into possession of such Lot or becomes record owner
of the Lot, whichever occurs first, and shall acquire titl-e free
and cf ear of any l-ien authorized by or arising out of t.he
provisions of t.his Decl-aration which secures the payment of any
dues, charges or Assessments accrued prior to the time such First
Mortgagee or third (3rd) party purchaser either comes into
possession of such Lot or becomes record Owner of the Lot. Any
such unpaid dues, charges or Assessments against the Lot forecl-osed
shall be deemed to be a Common Expense charged proratably against
all of the Members. Nevertheless, in the event the owner or Member
against whom the original Assessment was made in the purchaser or
redemptioner, the l-ien shall- continue in effect and may be enforced
by the Association, or by the Board, for the respective Lot's
Assessment that was due prior to the final conclusion of any such
foreclosure or equivalent proceedings. Further, dny such unpaid
Assessment shal-l- continue to exist as the personal obligation of
the default.ing Member and the defaulting owner of the respective
Lot to the Association, and the Board may use reasonable efforts to
collect the same from said Member and/or Owner even after he is no
Iongier a Member of the Association or the Owner of the Lot.
13.3 No Personal Liability. A Eirst Mortgagee shal-l- not in
any case or manner be personally Iiable for the payment of any
Assessment or chargre, nor the observance or performance of any
covenant, restriction, or rule and regulation of the Association,
or any provision of the Articl-es or ByJ-aws, or any management
agreement, except for those matters which are enforceable by
injunctive or other equitable actions, not requiring the payment of
money, except as specifically provided in thls Section 13.
13. 4 Enforcement After Foreclosure SaIe. An action to abate
the breach ons, restrictions, and
reservations may be brought against the purchasers who have
acquired title through forecl-osure of a Mortgage and the subsequent
foreclosure of trustee's sale (or through any equivalentproceedings), and the successors 1n lnterest to said purchasers,
even though the breach existed prior to the time said purchaser
acquired an interest in such Lot.
13.5 Exercise of Owner's Riqhts. During the pendency of any
proceedings gage (including any period of
redemption) or from the time a trustee under a flrst deed of trust
has qiven notice of sale pursuant to power of sale conferred under
a deed of trust and pursuant to the 1aw, the First Mortgaqee, or a
receiver appointed in any such action, may but-need not exercise
any or al-l- of the rights and privileges of the Owner in default
37
including, but. not limited to, the right to vote as a member of the
Associatlon in the place and stead of the defaultinq Owner.
13.6 Subject to Decl-aration. At such time as the Eirst
Mortgagee shal-l- come into possession of or become record Owner of aLot, the First Mortgragee shall be subject to aII of the terms and
conditions of this Declaration including, but not limited to, the
obligation to pay aII Assessments and charqes accruing thereafter,in the same manner as any other Owner.
SECTION 14.REMEDIES
14.1 General Remedles. fn the event of any default by an
owner,ltemu@otherPersonundertheprovisioniof
this Declaration, the Articles, Bylaws, Association Rules or Design
Guj-delines, the Association, or its successors or assignsr or its
agents, or the Declarant, shall have each and all of the rights and
remedies which may be provided for in this Declaration, theArticles, Bylaws, Association Rules or Desi-gn Guidelines, or which
may be avail-able at law or equity, and may prosecute any action or
other proceedj-ngs against such defaulting owner, Member, Occupant
or other Persons for an j-njunction, whether affirmative or
negative r or for enforcement or foreclosure of the l-ien hereinprovided and the appointment of a receiver for the Lot, or for
damagesr or specific performance, or for judg'ment for payment of
money and coll-ection thereof, or the right to take possession ofthe Lot and to rent the Lot and apply the rents recej-ved to payment
of unpaid Assessments and interesL accrued thereof, and to seIl the
same as hereinafter in this Section 15. l- provided r or for any
combination of remedies or for any other relj-ef, all without notice
and without regard to the value of the Lot or the solvency of such
Owner or Member. The proceeds of any such rental or sale shal-l
first be paid to discharge court costs, other litlgation costs,including without. l-imitation reasonabl-e attorneys I fees, and all
other expenses of the proceeding and sa1e, and all such items sha1l
be taxed agaj-nst the defaulting Owner or Member in a f inal-judgment. Any balance of proceeds after satisfaction of such
charqes and any unpaid Assessments hereunder or any liens shall bepaid to the owner or Member. Upon the confirmation of the sa1e,
the purchasers thereupon shall be entitl-ed to a deed to the Lot andto immediate possession of the Lot and may apply to the court for awrit of restitution for the purpose of acquiring such possession,
and it shal-I be a condition of any such sale, and the judgement
sha1I so provide, that the purchaser shal-I take the lnterest in theproperty sold subject to this Declaratj-on.
The Homeowners Association shal-L al-so have the right to makerules provi-ding for penalties to be assessed to a Member forviolation of any provision herein, provided, however, that eachsaid rul-e shall state the purpose for the assessment, thedistribution procedure for special assessment proceeds, and theperson(s) responsible for enforcement.
38
1,4.2 Expenses of Enforcement.A11 expenses of theAssociation or the Declarant, or other Person granted rights of
enforcement hereunder, in connection with any action or proceeding
described or permitted by this Section 74, including court ' costs
and reasonabl-e attorneys I fees and other fees and expenses, and aII
damages, liquidated or otherwise, together with i-nterest thereon
until paid at the Default Rate of Interest, shall be charged to and
assessed against such defaulting owner or Member or other Person
and sha1l be a Special Assessment aqrainst such Owner, Member or
other Person and the Association shaIl have a l-ien as provided in
Section 6 therefor. In the event of any such default by any Owner,
Member, or other Person the Association and the Declarant, and the
manager or managinq agent of the Association, if so authorized by
the President, shal-l have the authority to correct such default and
to do whatever may be necessary for such purpose, and aLl expensesin connection therewith sha1l be charqed to and assessed against
such defaulting Owner, Member or other Person as a Special
Assessment, which shall constitute a l-ien against the defaulting
owner or Member's Lot as provided in Section 6. Any and aII such
rights and remedies may be exercised at any time and from time to
time, cumulatively or otherwise, by the Association or the
Declarant.
14.3 Legal Action.fn addltion to any other remedies
available under this Sectj-on L4, if any Owner or Member (either byhis conduct. or by the conduct of any occupant of his Lot or family
member, quest, invitee or agent) shall vj-ol-ate any of theprovj-si-ons of this Declaration, or the Articles, Bylaws,
Assocj-ation Rul-es or Design Guidellnes, as then in effect, then theAssociation, the Declarant, or any affected or aqgrieved Owner orMember, shall have the power to file an action against the
defaul,ting Owner or Member for a judgrnent or injunction aqainst the
owner or Member or such other Person requiring the defaulting
owner, Member or other Person to comply'with the provisions ofthis Declaratj-on, or the Articles, Bylaws, Assocj-ation RuIes or
Design Guidelines, and granting other appropriate relief, including
money damages.
1-4.4 Effect on Mortgaqe. Anything to the contrary herein
notwithstan@ranyofthecovenants,restfictions,
reservations,, conditions and servitudes provided for in thisDeclaratJ.on, or any right of re-entry by reason thereof, shaIl not
defeat or adversely affect the lien of any Mortgage upon any Lotbut, except as herein specifically provided, each and all of said
covenants, restrictj-ons, reservations, conditions and servj-tudessha1l be binding upon and effective against any lessee or owner ofa Lot whose title thereto is acquired by foreclosure, trustee'ssa1e, sa1e, deed in lieu of foreclosure or otherwise.
14.5 Limitation on the Declarant's Liability. Notwith-
standing a ressly agreed
39
that neither the Declarant (including without. l-imitation any
assigrnee of the interest of the Declarant hereunder) nor anypartner in the Declarant partnership (or in any such assignee)shall have any persona1 liability to the Association, or any Owner,
Member or other Person, arising under, in connection with, orresulting from (including without limitation resulting from actionor failure to act with respect to) this Decl-aration except, in the
case of the Declarant (or its assignee) to the extent of itsj-nterest in the Property, and, in the case of a partner in theDeclarant (or in any such assiqnee), his interest in the Decl-arant(or such assignee), and, in the event of a judgrment against theDeclarant (or any partner or assignee thereof), no execution orother action shall be sought or brought thereon against any otherassets, nor be a Lien upon such other assets, of the judgrment
debtor.
SECTION 15 AMENDMENT
15.1 Amendment to Decl-aration.Amendments to this
Declaration sha11 be made by an instrument in writing entitled
"Amendment to Declaration" which sets forth the entire amendment.
Except as otherwise specifically provided for j-n this Declaration,
any proposed amendment must be approved by a majority of the board
prior to its adoption by the Members. Amendments may be adopted at
a meeting of the Members upon the approval thereof of two thirds(2/3) of al-l- of the Members or without any meeting if all- Members
have been duly notified and if two thirds (2/3) of all of the
Members consent in writing to such amendment. In al-l- events, the
amendment when adopted shall bear the siqnature of the president of
the Assocj-ation and shal-I be attested by the secretary, who shall
state whether the amendment was properly adopted, and shal-l- be
acknowledged by them as officers of the Association. Amendments
once properly adopted shal-1 be effective upon recording of the
Amendment to Decl-aration in the appropriate g:overnmental of f ices.
75.2 Effect of Amendment. It is specifically covenanted and
agreedtrratanyffirrisDec1arationproper1yadoptedwi11
be completely effective to amend any and all of the covenants,
condj-tions and restrlctions contained herein which may be affected
and any or all clauses of this Declarati-on or the Pl-at, unless
otherwise specifically provided in this Section being amended or
the amendment itself.
15.3 Amendment of Plat. Except as otherwise provided herein,
theP1atileamendedbyrevisedversionsorievisedportions
thereof referred to and described as to effect in an amendment to
this Declaration adopted as provided for herein. Copies of any
such proposed amendment to the PIat shal-I be made available for the
examination of every Member at the offices of the Association
during reasonable times. Such amendment to the Plat shall be
effective once properly adopted, upon recordation in the
appropriate governmental office in conjunction with the Decl-aration
40
amendment. Declarant or assigns may amend any portion of the plat
without member or Assocj-ation approval.
l-5.4 Required Approval-s. Notwithstanding the provis j-ons ofthe foreqoing sections of this Section 15, if this Declaration or
any applicable provision of 1aw requires the consent or agreement
of all Members and/or Owners and/or all lienhol-ders and atI
trustees and/or beneficiaries under trust deedsr or a specifiedpercentage thereof, for any action specified in this Declaration,
then any instrument changing, modifying or rescindlng any provj-sion
of this Decl-aration with respect to such actj-on sha11 be signed by
all of the Members and/or al-l- Iienholders and trustees and/orbeneficiaries under trust deeds, or the specified percentage
thereof, as required by this Declaration or by said 1aw.
SECTION 16. GENERAL PROVIS]ONS
16.1 Notices. Notices provided for in this Declaration, or
the eylaws or associatj-on Ru1es, shall be in writing and sha11 be
addressed to the Association at the address specifled in the
Bylaws. The Assocj-ation may designate a different address or
addresses for notice by giving written notice of such change of
address to all Owners and Members at such time. Al-l- notices to
owners shal-l- be to their respective Lots or to the last address
shown on the records of the Association and to other Members at thelast address shown on the records of the Association. Any Member
may designate a different address or addresses for notices to him
by giving written notj-ce of his change of address to theAssociation. Notices addressed as above shal-l- be deemed delivered
when mailed by United States registered or certified mail- t or when
delivered in person with written acknowledqrment of the receipt
thereof.
76.2 Captions and Exhibits; Construction. Captions gj-ven tovarious Sections herej-n, and the Table of Contents for thisDeclaration, are for convenience only and are not intended to
modify or affect the meaning of any of the substantive provisions
hereof. The various exhibits referred to herein are J-ncorporated
as though fuIIy set forth where such reference is made. Theprovisions of this Decl-aration shall- be 1iberal1y construed toeffectuate its purpose of creating a uniform plan for the
development and operation of the Property as hereinabove set forth.
16.3 Severabil.ly. If any provisj-on of this Declaration, theArticl-es, Bylaws, Association Rules or Design Guj-deIines, or anysection, clause, sentence, phrase or word, or the appli-cation
thereof in any circumstance, is held invalid, the validity of theremainder of this Declaration, the Articles, Bylaws, Assocj-ation
Rules or Design Guidelj-nes, and of the application of any suchprovision, section sentence, clause, phrase or word in any other
cj-rcumstances, sha11 not be affected thereby, and the remainder of
this Declarati-on, the ArticIes, Bylaws, Associ-ation Rules or Design
4L
Guidelines shal1 be construed as if such inval-id part were never
included therein.
16.4 Mor@. Each Owner shal-I have the right,
subjectto@ereof,tomakeseparateMortgaqesfor
his respective Lot. No Member shall have the right or authority to
make or create or cause to be made or creat.ed any MortgagTe r or
other l-ien or security interestr orr or affecting the Property or
any part thereof, except only to the extent of his Lot.
16.5Pow@.WhenevertheAssociationisgranted
rights,pr@sinthisDecIaration,thePresident
shall have the authority to act for the Association, unless such
right and power is herein expressly reserved to the Board. Further,
unless otherwise specifically restricted by the provisions of this
Declarati-on, wherever the Association is empowered to take any
action or do any act, including but not limited to action or acts
in connection with the Common Areas or sale thereof, which may at
any time be deemed to require the act of an Owner or Member, the
owners and Members and each of them hereby consti-tute and appoint
the Association as their attorney-in-factr ds may be appropriate,
for the purposes of taking such action or doing such acts including
but not l-imited to execut.ing, acknowledging and deliverlng any
instruments or documents necessary, appropriate or helpful for such
purposes.It is acknowledged that this power of attorney isj-rrevocable and coupled with an interest and by becoming a member
of the Assocj-ation or by the acceptance of a deed for a Lot or by
signing a contract for purchase of a Lot or by succeeding in anyother manner to the ownership of a Lot, or any interest therein, ora membershi-p j-n the Association, each Owner and Member shall- be
deemed and construed to have ratified and expressly granted the
above power of attorney.
16.6 Domestic Water. The domestic water supply sha1l be from
a central water,system which shal-l- be operated by the Associati-on.
Such water shall be for domestic in-house use only and theirrigatj-on of up to 14r500 square feet of grass, shrubs, treesr or
other foliage on each lot as permitted by the Association. A11
water use shal-l be metered by water meters approved by theAssociation. Aqreements and/or additional RuIes and Regrulations
concerning the use and operation of the water system may be
executed, proposed, and adopted by the Association to aIlow for theefficient use and operation of such system.
SECTION 17. RIGHTS AND OBLIGATIONS
Each qrantee of Declarant or the Declarant, by the acceptance
of a deed of conveyance, or each purchaser under any contract. for
such deed of conveyance, or each purchaser under any agreement of
sale, or each Person acquirinq a membership in the AssocJ-ation, andthe heirs, successors and assigns of the foregoing Persons, accepts
the same subject to all restriction, conditions, covenants,
42
reservations, 1i-ens and charges, and the jurisdiction, rights and
powers created or reserved by this Declaration, and aII riqhts,
benefits and privileges of every character hereby granted, created,
reserved or declared, and aIl imposi-tions and obligations hereby
imposed shal-l be deemed and taken to be covenants running wi-th the
Iand and equitable servitudes, and shall bind any Person having at
any time any interest or estate 1n said 1and, and shall j-nure to
the benefit of any such Person in like manner as though the
provisions of this Declaration were recited and stipulated at
Iength in each and every deed of conveyance, purchase contract or
instrument, evidencing or creating such interest.
IN
thi s
WITNESS
day of
WHEREOF the Declarant has set its hand and seal
' August | 1994.
David Hicks
Connie Hicks
STATE OF COLORADO )
) ss.
COUNTY OF GARFIELD)
Subscribed and sworn to before me this
1994.
Witness my hand and official seal.
My commission expires:
Notary Public
day of August,
43