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HomeMy WebLinkAbout1.18 Declaration of Covenants, Conditions, and RestrictionsSUNLIGHT PARKWAY SUBDIVISION DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS Garfield County, Colorado TABLE OF CONTENTS ARTICLE I - RECITALS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Section 1.1. The Declarant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Section 1.2. The Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Section 1.3. The Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Section 1.4. The Community. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Section 1.5. The Name of the Community. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Section 1.6. The Name of the Association. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Section 1.7. The Plat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Section 1.8. Maximum Number of Lots . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Section 1.9. The Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 ARTICLE II - DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Section 2.1. Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Section 2.2. Plat. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Section 2.3. Lot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Section 2.4. Owner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Section 2.5. Association. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Section 2.6. Executive Board. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Section 2.7. Architectural Review Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Section 2.8. Mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Section 2.9. Mortgagee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Section 2.10. Common Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Section 2.11. Common Elements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Section 2.12. Limited Common Elements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Section 2.13. General Common Elements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Section 2.14. Community . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 ARTICLE III - LOT OWNERSHIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Section 3.1. Separate Interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Section 3.2. Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Section 3.3. Enjoyment of Common Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Section 3.4. Inseparability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Section 3.5. No Partition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Section 3.6. Separate Titles and Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Section 3.7. Mechanic’s Lien Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Section 3.8. Description of Lots. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 ARTICLE IV - EASEMENTS; PARTY WALLS AND AREA SEPARATION WALLS . . . . . . 4 Section 4.1. Plat Dedications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Section 4.2. Enjoyment and Access. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Section 4.3. Utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Section 4.4. Snow Storage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Section 4.5. Maintenance Easement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Section 4.6. Party Wall Easements.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Section 4.7. General Law - Party Walls. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Section 4.8. Repair and Maintenance - Party Walls. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Section 4.9. Party Walls - Casualty.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Section 4.10. Area Separation Walls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Section 4.11. Encroachments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Section 4.12. Constructive Grant of Reciprocal Easements . . . . . . . . . . . . . . . . . . . . . . . 6 ARTICLE V - WATER AND SEWER SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Section 5.1 Water. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Section 5.2 Sewer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Section 5.3 Shared Water and Sewer Facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 ARTICLE VI - MAINTENANCE AND REPAIRS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Section 6.1. Owner's Duties - Lots. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Section 6.2. Associations Duties - Lots. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Section 6.3. Association's Duties - Common Elements. . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Section 6.4. Materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Section 6.5. Maintenance Costs - Common Elements. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Section 6.6. Association's Right of Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Section 6.7. Owner Caused Damage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Section 6.8. Association's Right to Maintain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Section 6.9 Declarant's Right to Maintain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Section 6.10. Landscaping and Lawn Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Section 6.11. Exterior Lighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Section 6.12. Owner Responsibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Section 6.13. Determination of Obligation and Supervision. . . . . . . . . . . . . . . . . . . . . . . 9 ARTICLE VII - THE ASSOCIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Section 7.1. Purposes and Powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Section 7.2. Membership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Section 7.3. The Executive Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Section 7.4. Bylaws and Articles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Section 7.5. Voting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Section 7.6. Exercise of Powers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Section 7.7. Assessments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Section 7.8. Assessments for Common Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section 7.9. Payment of Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section 7.10. Periodic Assessments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section 7.11. Added Charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section 7.12. Collection of Assessments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Section 7.13. Assessment Liens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Section 7.14. Budgets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Section 7.15. Audits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Section 7.16. Rules and Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 ii ARTICLE VIII - ARCHITECTURAL CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Section 8.1 Architectural Review Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Section 8.2 SPARC Approval Required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Section 8.3 Alterations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Section 8.4 Landscaping and Fire Mitigation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Section 8.5 No Landscape Alterations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Section 8.6 Revisions to Design Standards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Section 8.7 Variances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Section 8.8 Review Fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Section 8.9 Failure to Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Section 8.10 Diligence in Completing the Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Section 8.11 Notice Upon Completion of Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Section 8.12 Inspection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Section 8.13 Notice of Satisfactory Completion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Section 8.14 Non-Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Section 8.15 Completion of Landscaping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Section 8.16 Non-Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Section 8.17 Construction Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 ARTICLE IX - ALLOCATED INTERESTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Section 9.1. Common Elements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Section 9.2. Liability for Common Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Section 9.3. Voting Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Section 9.4. Allocation of Interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 ARTICLE X - DECLARANT'S RESERVED DEVELOPMENT RIGHTS . . . . . . . . . . . . . . . . 17 Section 10.1. Rights Reserved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Section 10.2. Exercise of Development Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Section 10.3. Reserved Construction Easement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Section 10.4. Promotional Activity of Declarant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Section 10.5. Removal of Declarant's Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Section 10.6. No Interference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Section 10.7. Location of Lots. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Section 10.8. Time Limit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Section 10.9. Release or Assignment of Declarant's Rights . . . . . . . . . . . . . . . . . . . . . . 19 ARTICLE XI - DECLARANT'S RIGHTS TO CONTROL THE ASSOCIATION . . . . . . . . . . 19 Section 11.1. This Article Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Section 11.2. Period of Declarant Control. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Section 11.3. Voluntary Surrender. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Section 11.4. Association's Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 ARTICLE XII - USE RESTRICTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Section 12.1. Use of Lots. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 iii Section 12.2. No Resubdivision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Section 12.3. Leases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Section 12.4. Animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Section 12.5. Alterations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Section 12.6. Signs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Section 12.7. Antennas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Section 12.8. Garbage and Trash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Section 12.9. Clotheslines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Section 12.10. Parking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Section 12.11. Fences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Section 12.12. Maintain Appearance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Section 12.13. Vehicle Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Section 12.14. Trailers, Campers, Recreational and Junk Vehicles. . . . . . . . . . . . . . . . . 21 Section 12.15. Prohibitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Section 12.16. No Hazardous Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Section 12.17. Underground Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 ARTICLE XIII - INSURANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Section 13.1. Association to Maintain Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Section 13.2. Non-Availability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Section 13.3. Additional Coverage Required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Section 13.4. Adjustment of Property Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Section 13.5. Procedures; Deductibles; Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Section 13.6. Owner's Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Section 13.7. Officers and Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Section 13.8. Fidelity Bonds and Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Section 13.9. Managing Agent Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Section 13.10. Worker's Comp. and Employer's Liability Insurance. . . . . . . . . . . . . . . . 24 Section 13.11. Other Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Section 13.12. Insurance Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Section 13.13. Annual Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Section 13.14. Duty to Repair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 ARTICLE XIV - ASSESSMENT CERTIFICATES AND NOTICES. . . . . . . . . . . . . . . . . . . . . 25 Section 14.1. Assessment Certificates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Section 14.2. Notice of Assessment Liens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 ARTICLE XV - GENERAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Section 15.1. Notices to Owners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Section 15.2. Easement Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Section 15.3. Covenants to Run with the Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Section 15.4. Enforcement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Section 15.5. Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Section 15.6. Termination of Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Section 15.7. Restoration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 iv Section 15.8. Duration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Section 15.9. Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 v SUNLIGHT PARKWAY SUBDIVISION DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS (Garfield County, Colorado) KNOW ALL MEN BY THESE PRESENTS that Sunlight Parkway, LLC does hereby declare and adopt the following Declaration of Covenants, Conditions and Restrictions (the "Declaration"), which shall run with the real property hereafter described, and shall be binding upon all parties acquiring any interest therein or thereto. ARTICLE I - RECITALS Section 1.1. The Declarant. Sunlight Parkway, LLC (the "Declarant") is a limited liability company duly organized and existing under and by virtue of the laws of the State of Colorado. Section 1.2. The Property. The real property submitted to this Declaration is located in the County of Garfield, State of Colorado, and is described, as follows: Lot 2, Sunlight Parkway Minor Subdivision According to the Amended Final Plat thereof recorded ___________, 2024 as Reception No. __________ of the Garfield County, Colorado records (the “Property”). Section 1.3. The Development. The Property has been subdivided into twelve (12) single family lots upon which six (6) duplex structures shall be constructed. Each duplex structure shall contain two (2) separate single-family residential dwellings constructed on two (2) separate lots, separated by a party wall or separation walls along the common boundary of the two (2) lots (the “Development”). Section 1.4. The Community. The Development shall constitute a common interest community within the meaning of the Colorado Common Interest Ownership Act (the “Act”). The Development will constitute a “condominium,” within the meaning of the Act and shall be located, in its entirety, within Garfield County, Colorado. Section 1.5. The Name of the Community. The name of the common interest community is Sunlight Parkway Subdivision. Section 1.6. The Name of the Association. The name of the Association which shall manage the Community in accordance with the provisions of the Declaration and the Act is Sunlight Parkway Homeowners Association. 1 Section 1.7. The Plat. The Development is depicted on the Final Plat of Sunlight Parkway Subdivision, recorded as Reception No. of the Garfield County, Colorado records. Section 1.8. Maximum Number of Lots. The Community shall include a maximum of twelve (12) single family lots. Section 1.9. The Purpose. The purpose of this Declaration is to further the interests of the Community, to protect and enhance the property values and to otherwise effectuate the terms and provisions of the Act. ARTICLE II - DEFINITIONS The following terms shall have the following meanings when used herein unless the context otherwise requires: Section 2.1. Property. “Property” means the property described in Section 1.2 above, all of which is submitted to this Declaration. Section 2.2. Plat. “Plat” means the Final Plat of Sunlight Parkway Subdivision referenced in Section 1.7 above. Section 2.3. Lot. The term “Lot” shall mean a physical portion of the Development designated for separate ownership and shall refer to any of the numbered Lots shown on the Plat. Section 2.4. Owner. “Owner” or “Lot Owner” means and refers to any person or entity, including the Declarant, at any time owning a Lot. Section 2.5. Association. “Association” means and refers to Sunlight Parkway Homeowners Association, a Colorado corporation not for profit. Section 2.6. Executive Board. “Executive Board” means the Executive Board of the Association. Section 2.7. Architectural Review Committee. “Architectural Review Committee” means and refers to the Sunlight Parkway Architectural Review Committee established by this Declaration. Section 2.8. Mortgage. “Mortgage” means and refers to any Mortgage, deed of trust or other security instrument by which a Lot or any part thereof is encumbered. Section 2.9. Mortgagee. “Mortgagee” means and refers to any person or entity named as a Mortgagee or beneficiary under any deed of trust or Mortgage under which the interest of any Owner is encumbered. 2 Section 2.10. Common Expenses. “Common Expenses” means and refers to expenditures made or liabilities incurred by or on behalf of the Association, together with any allocations to reserves. Section 2.11. Common Elements. “Common Elements” means and includes all parts of the Development, grounds, improvements, installations and facilities which are not included within a Lot. Section 2.12. Limited Common Elements. “Limited Common Elements” means a portion of the Common Elements allocated by the Declaration for the exclusive use of one (1) or more Lots, but fewer than all the Lots. Section 2.13. General Common Elements. “General Common Elements” means the Common Elements exclusive of the Limited Common Elements. Section 2.14. Community. “Community” means and includes all the property submitted to this Declaration. ARTICLE III- LOT OWNERSHIP Section 3.1. Separate Interests. The Property shown on the Plat is divided into separate fee simple interests in the individual Lots depicted thereon. The ownership of a Lot includes and is subject to the easements, rights, and obligations created by this Declaration and the By-Laws of the Association. Section 3.2. Title. Title to a Lot may be held or owned by any person or entity in any manner by which title to any other real property may be held or owned in the State of Colorado. Section 3.3. Enjoyment of Common Elements. Subject to the limitations contained in this Declaration, every Owner shall have the nonexclusive right to use and enjoy the General Common Elements and the exclusive right to use and enjoy any Limited Common Elements designated by the Plat or this Declaration for the exclusive use of or pertinent to such Owner’s Lot. Section 3.4. Inseparability. Every conveyance, transfer, gift, devise, encumbrance, or other disposition of a Lot, or any part thereof, shall be presumed to be a conveyance, transfer, gift, devise, encumbrance, or disposition, as the case may be, of the entire Lot, together with all appurtenant rights created by this Declaration. No part of a Lot or of the legal rights appurtenant thereto may be separated from any other part thereof. Section 3.5. No Partition. No Owner may bring any action for partition of the Common Elements. Section 3.6. Separate Titles and Taxation. Each Lot, together with its interest in the Common Elements, constitutes for all purposes a separate parcel of real estate and must be separately assessed and taxed. The value of the Common Elements shall be assessed proportionately to each Lot in accordance with such Lot’s allocated interest in the Common Elements. The Common Elements shall not be separately taxed or assessed. Upon the filing for recordation of this Declaration and the Plat, the Declarant shall deliver a copy of such filing to the Assessor of Garfield 3 County, Colorado. Thereafter, all taxes, assessments, and other charges of the State, or any political subdivision, or of any special improvement district, or of any other taxing or assessing authority shall be assessed against and collected on each Lot, each of which shall be carried on the tax roles as a separate and distinct parcel for that purpose. No forfeiture or sale of any Lot for delinquent taxes, assessments, or other governmental charges shall divest or in any way affect the title of the other Lots. Section 3.7. Mechanic’s Lien Rights. No labor performed or materials furnished for use in connection with any Lot with the consent or at the request of an Owner, his agent, or subcontractor shall create any Mechanic’s Lien or right to file a statement of Mechanic’s Lien against the Lot of any other Owner not benefitted thereby, or against any interest in the Common Elements. Section 3.8. Description of Lots. Every deed for the conveyance of a Lot and every other instrument affecting title to a Lot shall identify the County in which the Lot is located and may describe that Lot by the number shown on the Plat with appropriate reference to the Plat and to this Declaration, as each shall appear in the records of Garfield County, Colorado, in the following fashion: Lot , SUNLIGHT PARKWAY SUBDIVISION, according to the Plat thereof recorded as Reception No. and the Declaration recorded as Reception No. of the Garfield County, Colorado records. ARTICLE IV - EASEMENTS; PARTY WALLS AND AREA SEPARATION WALLS Section 4.1. Plat Dedications. All dedicated easements shown on the Plat or provided herein are hereby dedicated or reserved for the purposes intended. Section 4.2. Enjoyment and Access. Every Owner shall have a non-exclusive right and an easement appurtenant to his Lot for the enjoyment and use of the Common Elements and for access to his Lot, including an easement for ingress and egress for pedestrian traffic over, through, and across sidewalks, paths, walks, and lanes as the same may from time to time exist upon the Common Elements and for pedestrian and vehicle traffic over, through, and across such roads and drives as from time to time may be intended for such purposes. Section 4.3. Utilities. There is hereby created a blanket easement over, across, and through the Property, to install, repair, replace, and maintain all utilities, including, without limitation, water, sewer, gas, telephone, electricity, cable tv, telecommunications and internet services. The Property shall also be subject to a blanket easement in favor of the Association to install, maintain, repair, replace or reconstitute utility service lines, irrigation and sprinkler systems, fixtures, equipment and facilities serving the Lots. 4 Section 4.4. Snow Storage. All areas of the General Common Elements not used for roadway, sidewalk or driveway purposes shall be subject to an easement for the deposit and storage of snow removed from the roadways, sidewalks and driveways located within the Common Elements, provided that snow shall not be stored within five (5) feet of any building existing on any Lot. Section 4.5. Maintenance Easement. The Common Elements, and to the extent necessary, the Lots themselves, shall be subject to a non-exclusive right and easement in the Association, including its agents, employees, contractors, and subcontractors, as may be necessary or appropriate for the performance of the duties and functions which the Association is permitted or obligated to perform under this Declaration and for providing maintenance and repairs. Section 4.6. Party Wall Easements. Mutual reciprocal easements are hereby established, declared and granted for all party walls between improvements constructed or to be constructed on the Lots, which reciprocal easements shall be for mutual support and shall be governed by this Declaration. Every Deed, whether or not expressly so stating, shall be deemed to convey and to be subject to such reciprocal easements. Section 4.7. General Law - Party Walls. Each wall which is built as a part of the original construction of the improvements within the Development and placed on the dividing line between the Lots shall constitute a party wall. To the extent not inconsistent with the provisions of this Article, the general rules of law regarding party walls and liability for property damage due to negligence or willful acts or omissions shall apply thereto. Section 4.8. Repair and Maintenance - Party Walls. The cost of reasonable repair and maintenance of any party wall shall be borne equally by the Owners on either side of the party wall. If one of the Owners refuses to pay his proportionate share of the cost of repair or maintenance, then the other Owner may cause the party wall to be repaired and shall be entitled to assess the share of the cost attributable to the adjoining Owner against the non-paying adjoining Owner’s Lot, and the same shall become and remain a lien against said Lot until fully paid. Said lien may be foreclosed in the manner provided by law for the foreclosure of a mortgage on real property. Section 4.9. Party Walls - Casualty. If a party wall is destroyed or damaged by fire or other casualty not covered or not fully covered by the insurance to be maintained by the Association, any Owner served by the wall may restore it or complete the restoration and the other Owner also served by the party wall shall contribute to the cost of restoration thereof an equal, proportionate share, without prejudice however, to the right of any such Owner to call for a larger contribution from the other Owner under any rule of law regarding liability for negligent or willful acts or omissions. If one Owner causes the party wall to be restored or completes the restoration, and any other Owner served by the party wall does not contribute his full allocable share to the costs incurred by the Owner who caused the party wall to be restored, the costs attributable to the non-paying adjoining Owner shall be assessed against that Owner’s Lot and the same shall become and remain a lien against said Lot until fully paid. Said lien may be foreclosed in the manner provided by law for the foreclosure of a mortgage on real property. 5 Section 4.10. Area Separation Walls. The foregoing paragraphs pertaining to Party Walls shall not apply to Area Separation Walls constructed on each side of the dividing line between the Lots, with a small air gap in between. Each Area Separation Wall serves a separate dwelling unit. The responsibility and cost of repair and maintenance of an Area Separation Wall shall be borne solely by the Owner of the dwelling unit served thereby. Section 4.11. Encroachments. If a dwelling unit should encroach upon another Lot by reason of original construction or by the non-purposeful or non-negligent act of the Owner, then an easement appurtenant to such encroaching dwelling unit, to the extent of such encroachment, shall exist so long as such encroachment shall exist. If any Common Element shall encroach upon any Lot by reason of original construction, or the non-purposeful or non-negligent act of the Association, then an easement appurtenant to such Common Element to the extent of such encroachment shall exist so long as such encroachment shall exist. Section 4.12. Constructive Grant of Reciprocal Easements. All conveyances of Lots hereafter made, whether by the Declarant or otherwise, shall be construed to grant and reserve such reciprocal easements as shall give effect to the preceding Sections of this Article, even though no specific reference to such easements appear in the conveyance. Such easements and covenants are intended and hereby are declared to run with the land and to be appurtenant to the respective Lots, and each of them. ARTICLE V - WATER AND SEWER SERVICES Section 5.1 Water. Potable water shall be supplied by the Sunlight View Water and Wastewater Company. Subject to the provisions of Section 5.3 below, the Association shall operate, repair and maintain any shared water facilities within the Development that are not owned and maintained by Sunlight View Water and Wastewater Company. Lot Owners shall have external water meters on all dwelling units as a condition of final Certificate of Occupancy. Section 5.2 Sewer. Sanitary sewer service shall be provided by Sunlight View Water and Wastewater Company. Subject to the provisions of Section 5.3 below, the Association shall operate, repair and maintain any shared sewer facilities within the Development that are not owned and maintained by Sunlight View Water and Wastewater Company. Section 5.3 Shared Water and Sewer Facilities. All costs associated with maintaining, repairing or replacing any water line, sewer line or associated facilities which serve more than one Lot shall be shared equally among the Lots served thereby and any such maintenance, repair or replacement work shall be coordinated by the Association. ARTICLE VI - MAINTENANCE AND REPAIRS Section 6.1. Owner's Duties - Lots. Each Owner shall be responsible for maintenance and repair of the interior of such Owner’s dwelling unit, and all plumbing, sewers, drains, pipes, electrical wiring and heating, cooling and ventilation facilities and systems serving only such 6 Owner’s dwelling unit. Common trunk lines and other common facilities shared by more than one Lot shall be the obligation of the Association. All shutters, awnings, window boxes, doorsteps, entryways, stoops, porches, balconies and patios and all exterior doors and windows, frames, glass, and stairs used or allocated solely to a particular Lot shall be maintained by the Owner of that Lot. Each Owner shall be responsible for the removal of snow from the driveway and walkways located within and serving such Owner’s Lot. In performing such maintenance or repair, or in improving or altering a Lot, an Owner shall obtain all necessary governmental permits and licenses, and shall comply with all applicable laws, rules and regulations, including the rules and regulations of the Association, and shall first obtain any required approvals from the Architectural Review Committee. Notwithstanding the foregoing, no Owner shall do any maintenance, repair or improvement work that impairs the structural soundness of the building in which such Owner's dwelling unit is located or that interferes with any easement. No Owner shall have the right to make or cause to be made any additions, alterations or repairs to the Common Elements. Section 6.2 Associations Duties - Lots. The Association shall maintain and keep in good condition and repair the following improvements within or which form a part of the Lots: (a) The exterior surfaces of the dwelling units, including the roofs, but excluding those items listed in Section 6.1 above to be maintained by the Owners; (b) Any landscaped areas located between the front of the duplex unit and Sunlight Parkway; (c) The driveway serving each Lot (does not include snow removal which shall be the Owner’s responsibility); and (d) Any common utility trunk lines located within a Lot that also serve one or more other Lots. The Association may assume other maintenance duties with respect to the dwelling units, sidewalks and grounds located within the boundaries of the Lots on a non-discriminatory basis but shall have no obligation to do so. Section 6.3. Association's Duties - Common Elements. The Association shall be responsible for the maintenance and repair of all the Common Elements. Without limiting the generality of the foregoing, the Association shall provide lawn, grounds and landscaping care, shall water, trim, prune and winter wrap trees and shrubs, maintain and operate the irrigation system for the benefit of the Community and otherwise maintain and keep in good repair and condition all sidewalks, yards, grounds, greenbelt areas, all roads and drives, traffic control devices and signage, recreational equipment and all other improvements and facilities which form a part of the Common Elements. The Association shall provide for the removal of snow from steps, stairs, walkways, sidewalks, roadways and drives which form a part of the Common Elements. The Association shall provide for the removal of snow and ice from the roofs and gutters, as and when necessary or otherwise advisable. The Association shall maintain the Common Elements to substantially the same or better standards as originally installed. 7 Section 6.4. Materials. Insofar as the party walls, Area Separation Walls, the utility services and facilities, the irrigation system, the structural and exterior portions of the dwelling units and any fences are concerned, the Association shall have the sole discretion in determining the kind and type of materials to be used in all maintenance and repair work performed, whether the work be performed by the Association or an Owner. Section 6.5. Maintenance Costs - Common Elements. The costs incurred by the Association in connection with the costs of the maintenance, repair and upkeep of the Common Elements and those portions of the Lots to be maintained by the Association shall be a Common Expense of all the Owners; provided that, the cost of any such maintenance, repair and upkeep necessitated by excessive wear or abuse caused by or attributable to the Owner or Owners of one or more of the Lots, may by resolution adopted by the Executive Board, be assessed to the Owner or Owners responsible for the excessive wear or abuse in such proportions as the Executive Board, in its sole discretion, determines to be proper. Section 6.6. Association's Right of Access. To perform the maintenance and repairs, the Association shall have the right of access to any Lot during reasonable hours, or at any time for the purpose of making emergency repairs necessary to prevent damage to the Common Elements or to other Lots. The costs of repairing any damage to a Lot resulting from entry therein for the purpose of repairing or maintaining the Common Elements or preventing damage to the Common Elements or another Lot, shall be a Common Expense of all the Owners. Section 6.7. Owner Caused Damage. Notwithstanding the foregoing, if damage to the Common Elements or to any Lot is caused by the negligence or intentional act of an Owner or if entry into a Lot is required because of any negligence or intentional act on the part of an Owner, such Owner shall pay, or reimburse the Association, for all costs of repairing such damage and shall be liable to the Association and the other Owners for all additional losses or expenses suffered as a result of his negligence or intentional acts, including without limitation, reasonable attorney's fees. Section 6.8. Association's Right to Maintain. If in the sole judgment of the Executive Board, any Owner has failed to keep and maintain his dwelling unit or Lot in good condition and repair, the Association may, after thirty (30) days notice to the Owner, perform all work necessary to maintain the dwelling unit or Lot in good condition and repair and the Association shall have access to the dwelling unit or Lot for such purposes. The Owner shall reimburse the Association for the cost of such work. Section 6.9. Declarant's Right to Maintain. If, in the sole judgment of Declarant, the Association has failed to keep and maintain the Common Elements in good condition and repair, the Declarant may, after thirty (30) days notice to the Association, perform all work necessary to maintain the Common Elements in good condition and repair and Declarant shall have access to any Lot and the Common Elements for such purposes. The Association shall reimburse Declarant for the cost of such work, which shall be a Common Expense of all Owners. 8 Section 6.10. Landscaping and Lawn Care. Any landscaping in addition to that approved in connection with the initial construction of a dwelling unit shall be at the discretion of the Association and subject to the prior approval of the Executive Board, which may assess a review fee. The Association shall provide lawn care with respect to the Common Elements and all yard or landscaped areas of the Lots and the costs associated therewith shall be a Common Expense to all Owners. For purposes of this section, in addition to mowing the grass, the term “lawn care” includes trimming, maintaining and caring for trees, plants, shrubs, flowers and other ornamental landscaping. Section 6.11. Exterior Lighting. The Association shall be responsible to maintain and repair all exterior lighting fixtures. No Owner shall alter or change any exterior lighting fixture or replace exterior light bulbs with higher wattage bulbs. Section 6.12. Owner Responsibility. Any maintenance or repair required by reason of the willful or negligent act of the Owner, members of his family or guests, tenants or occupants of the Owner's Lot, shall be attributed to the Owner and shall be the responsibility and obligation of such Owner. The Association shall have the right to perform any such maintenance or repairs and recover such costs from the Owner responsible. Section 6.13. Determination of Obligation and Supervision. The responsibility for the performance of any maintenance, repair, lawn care, snow removal or other work not expressly delineated above shall be determined by the Association. In the event any dispute should arise as to the construction or interpretation of the foregoing Sections, the determination with regard thereto made by the Association shall be conclusive. The Association shall have the right to prescribe minimum standards with regard to an Owner's performance of any maintenance for which the Owner is responsible. The Owner shall comply with all guidelines and requirements prescribed by the Association in this connection, and in furtherance hereof, the Association shall have the right to require any Owner at any time, to forthwith correct any repair or any maintenance deficiency then existing. ARTICLE VII - THE ASSOCIATION Section 7.1. Purposes and Powers. The Association through the Executive Board or a Managing Agent shall perform the functions and manage property as provided in this Declaration so as to further the interests of the Lot Owners in the Development. The Association shall have all the powers necessary or desirable to effectuate such purposes. Section 7.2. Membership. Every Owner shall be entitled and required to be a member of the Association. An Owner shall be entitled to one (1) membership for each Lot owned. Each such membership shall be appurtenant to and inseparable from the Lot upon which it is based, and shall be transferred automatically by the transfer (in whatsoever form) of that Lot. Ownership of a Lot shall be the sole qualification for membership. No person or entity other than an Owner may be a member of the Association. Section 7.3. The Executive Board. The affairs of the Association shall be managed by an Executive Board which may by resolution delegate any portion of its authority to an Executive 9 Committee or to a Managing Agent for the Association. There shall be no fewer than three members of the Executive Board, the specific number to be set forth from time to time in the Bylaws. Section 7.4. Bylaws and Articles. The purposes and powers of the Association and the rights and obligations with respect to Owners set forth in this Declaration may and shall be amplified by provisions of the Articles and Bylaws of the Association. Section 7.5. Voting. Each Lot shall be entitled to one (1) vote. Owners of more than one (1) Lot shall have the right to cast the aggregate number of votes that the Lots which they own represent. If any Lot is owned by multiple parties, all such parties shall be members. If only one (1) of the multiple Owners of a Lot is present at a meeting of the Association, such Owner is entitled to cast all the votes allocated to that Lot. If more than one (1) of the multiple Owners are present, the votes allocated to that Lot may be cast only in accordance with the agreement of a majority in interest of the Owners. There is a majority agreement, if any one (1) of the multiple Owners casts the votes allocated to that Lot without protest being made promptly to the person presiding over the meeting by any of the other Owners of the Lot. In no event shall more votes be cast with respect to any Lot than the total number of votes allocated to that Lot. No vote(s) allocated to a Lot owned by the Association may be cast. Cumulative voting shall not be permitted in the election of the Executive Board or for any other purpose. Section 7.6. Exercise of Powers. The Association may exercise any right or privilege given it expressly by this Declaration, by the Act or otherwise by law, and every other right, privilege, and power reasonably to be implied from this Declaration or reasonably necessary to effectuate its function and purposes. Section 7.7. Assessments. The Association shall have the right to levy and make assessments for Common Expenses, in accordance with this Declaration and its By-Laws, for the following purposes: (a) To promote the recreation, health, safety, and welfare of the Owners and the residents of the Development; (b) To pay the costs and expenses of maintaining the Common Elements and those portions of the Lots to be maintained by the Association as set forth in this Declaration; © To pay the premiums for all insurance which the Association is required or permitted to maintain; (d) To pay taxes and special assessments levied against any property of the Association, whether real or personal; (e) To provide lawn, grounds and landscaping care for the Common Elements and to otherwise maintain the Common Elements; 10 (f) To pay the costs and expenses of maintaining, repairing and operating the irrigation system serving the Development; (g) To provide lawn, grounds and landscaping care for all yard or landscaped areas; (h) To provide for the removal of snow from sidewalks, roadways, driveways and parking areas which form a part of the Common Elements and from the roofs and gutters as needed; (I) To pay all charges for lighting, utilities, irrigation water, trash removal and other services attributable to the Common Elements; (j) To pay wages for Association employees, Association management expenses legal and accounting fees; (k) To pay any deficit remaining from any previous assessment period; (l) To create a reasonable contingency reserve, surplus and/or sinking fund; (m) To pay any other expenses and liabilities which may be incurred by the Association for the benefit of the Owners under or by reason of this Declaration, its Articles of Incorporation or By-Laws; and (n) For any other purpose permitted by the Act. Section 7.8. Assessments for Common Expenses. Each Owner shall pay such Owner’s prorata share of the Common Expenses. Such proration shall be made on the basis of each Owner's allocated interest in the Common Elements. Nothing contained in this subsection shall prohibit certain Common Expenses from being apportioned to a particular Lot or Lots as provided elsewhere in this Declaration. Section 7.9. Payment of Assessments. Each Owner shall pay to the Association, in accordance with its By-Laws, such assessments as may be periodically made by the Association. Until the Association makes an assessment for Common Expenses, the Declarant shall pay all Common Expenses. Section 7.10. Periodic Assessments. After any assessment has been made by the Association, assessments shall thereafter be made monthly or on such other periodic basis as the Executive Board shall determine, but no less frequently than annually, and shall be based on a budget adopted no less frequently than annually. Section 7.11. Added Charges. The Association may impose charges for late payment of assessments, recover reasonable attorney's fees and other costs of collection and levy fines for violations of the Declaration, the By-Laws or the Rules and Regulations of the Association. All such charges shall be enforceable as assessments. Any past due Common Expense assessment or 11 installment shall bear interest at the rate of eight percent (8%) per annum or at such greater rate as may be established by the Executive Board, but not exceeding twenty-one percent (21%) per annum. Section 7.12. Collection of Assessments. The Association shall have the right to bring an action at law against the Owner personally obligated to pay any delinquent assessment or fines. Section 7.13. Assessment Liens. The Association shall also have a statutory lien on any Lot for any assessment levied against that Lot or fines imposed against the Lot Owner. The amount of the lien shall include any fees, charges, late charges, attorney's fees, fines and interest. This Declaration constitutes record notice and perfection of the statutory lien. No further recordation of any claim of lien or assessment is required. The statutory lien for unpaid assessments is extinguished unless proceedings to enforce the lien are instituted within six (6) years after the full amount of the assessments become due. The Association's lien for assessments and enforcement rights in respect thereto shall be governed by the applicable provisions of the Act, as now in effect or hereafter amended. Section 7.14. Budgets. It shall be the duty of the Executive Board to formulate and propose a budget of expenses, not less frequently than annually. Within ninety (90) days after adoption of any proposed budget for the Community, the Executive Board shall mail, by ordinary first-class mail, or otherwise deliver a summary of the budget to all the Lot Owners (members) and shall set a date for a meeting of the Lot Owners to consider the budget. The Executive Board shall give notice to the Lot Owners of the meeting in accordance with the Act and Bylaws. The budget proposed by the Executive Board shall not require approval from the Lot Owners and it will be deemed approved by the Lot Owners in the absence of a veto at the noticed meeting by a majority of all Lot Owners, whether or not a quorum is present. In the event that the proposed budget is vetoed, the periodic budget last proposed by the Executive Board and not vetoed by the Lot Owners must be continued until a subsequent budget proposed by the Executive Board is not vetoed by the Lot Owners. Section 7.15. Audits. The books and records of the Association shall be subject to an audit, using generally accepted auditing standards, or a review, using statements on standards for accounting and review services, at least once every two (2) years by a person selected by the Executive Board. Such person need not be a certified public accountant except in the case of an audit. An audit shall be required under this Section only when both of the following conditions are met: (a) The Association has annual revenues or expenditures of at least Two Hundred Fifty Thousand Dollars ($250,000); and (b) An audit is requested by the Owners of at least one-third (1/3) of the Lots represented by the Association. Copies of an audit or review under this Section shall be made available upon request to any Lot Owner beginning no later than thirty (30) days after its completion. 12 Section 7.16. Rules and Regulations. In furtherance of the intent, purposes and provisions of this Declaration, rules and regulations may be adopted, amended or repealed from time to time by the Executive Board. All rules and regulations adopted by the Association shall be applied uniformly in a non-discriminatory manner. The Executive Board may also establish and enforce penalties and fines for the infraction of any rule or regulation, which fines shall be collectable as assessments in the manner provided above. ARTICLE VIII - ARCHITECTURAL CONTROL Section 8.1 Architectural Review Committee. There is hereby established an architectural review committee, known as the Sunlight Parkway Architectural Review Committee (the “SPARC”), which shall consist of three (3) members appointed by the Declarant. The members of the SPARC shall be selected at the discretion of the Declarant, and shall serve at the pleasure of the Declarant. The Declarant shall have the continuing right to appoint all members of the SPARC until all Lots within the Community have been conveyed to parties other than Declarant; provided that, in its discretion Declarant may, at any time, voluntarily relinquish such right of appointment to the Association. Upon relinquishment of the right of appointment, the Executive Board of the Association shall thereafter appoint the Members of the SPARC. Section 8.2 SPARC Approval Required. No building permit application shall be submitted to Garfield County, Colorado and no improvements shall be constructed, erected, placed, maintained, changed or altered (including any change of exterior appearance, color or texture), nor shall any fence, utility facilities or other structures be built, extended, installed or any work undertaken on any Lot, until plans and specifications with respect thereto, in a form satisfactory to the SPARC, have been submitted to and approved in writing by the SPARC. All improvements, landscaping and plans shall conform to the design controls and development guidelines set forth in the Sunlight Parkway PUD Guide attached as Exhibit A to Resolution No. 2023-22 recorded as Reception No. 986907 of the Garfield County, Colorado records and applied on a consistent basis (the “Design Standards”). All applicants shall follow the SPARC review process and procedures outlined in this Declaration and the Design Standards. All plans and specifications shall conform to Uniform Building Code and other applicable state and local codes as then in effect and shall be submitted in writing over the signature of the Owner of the Lot(s) or the Owner's authorized representative. The SPARC may refuse approval of plans upon any reasonable basis. However, it shall not arbitrarily or unreasonably withhold its approval. Section 8.3 Alterations. No alteration of the exterior appearance of any improvement (including color or texture), fence, utility facilities or other structures, shall be made without the approval of the SPARC. Section 8.4 Landscaping and Fire Mitigation. A landscape plan shall be required as a part of the approval process required for the construction of improvements on any Lot. No landscaping plan shall be implemented until approval by the SPARC has been obtained. No approval for the construction of a building or other improvements upon any Lot shall be granted, except in conjunction with approval by the SPARC of an appropriate landscaping plan. In order to reduce 13 wildfire risks, all vegetation within the Development shall be maintained as follows: (a) lawns and native grasses shall be cut and maintained so as not to exceed 6 inches in height; (b) low hanging branches of trees shall be trimmed to eliminate ladder fuels which allow a fire to burn from ground level to lower tree branches; (c) all dead branches, limbs, trees, bushes, shrubs and other debris shall be removed; and (d) roofs shall be constructed of fire resistant materials. Section 8.5 No Landscape Alterations. The landscape plan approved for any Lot may not be altered without first obtaining the SPARC’s approval of the revised plan. Section 8.6 Revisions to Design Standards. In addition to design controls and development guidelines imposed by the Design Standards, the SPARC may revise or prescribe additional standards and prescribe, revise and from time to time amend the procedures to be followed, the materials to be submitted, the review fees to be paid and the factors which will be taken into consideration in connection with the approval of any proposed improvement or landscaping. Section 8.7 Variances. SPARC shall have the authority to approve and grant variances or relief from the Design Standards where, in the judgment of the SPARC, such variance is warranted by hardship or otherwise deemed appropriate. The SPARC may impose special conditions and requirements in connection with the approval of any such variance. A variance may be granted upon a majority vote of the Members of the SPARC. However, the SPARC does not have authority to waive permitting or building requirements of Garfield County, Colorado. Section 8.8 Review Fees. The SPARC may provide for the payment of a fee to accompany each application for approval of any improvement or landscaping proposed within the Development. A uniform fee may be established, or the fee may be determined in any other reasonable manner by the SPARC. The SPARC may hire professional consultants if deemed necessary to properly review any Application. Section 8.9 Failure to Act. Any decision of the SPARC shall be made within sixty (60) days after receipt of all materials required, unless such time period is extended by mutual agreement. The decision shall be in writing, and if the decision does not approve the application, the reasons shall be stated. The decision shall be promptly transmitted to the applicant at the address furnished by the applicant. Any request for approval shall be deemed approved, unless disapproval or a request for additional information is transmitted to the applicant by the SPARC within thirty (30) days after the date the application and all information and materials required, have been submitted. Section 8.10 Diligence in Completing the Work. Following approval of any proposed improvement, the Owner shall secure the requisite building permit from Garfield County, Colorado and the improvement shall be completed by the Owner as promptly and diligently as practicable in substantial conformance with the submittals made, and in accordance with all conditions imposed by the SPARC. All such improvements shall be completed within twelve (12) months of the date of approval. The landscaping approved in connection with construction of the initial improvements on a Lot shall be completed within six (6) months after a Certificate of Occupancy has been issued. 14 In all other cases, such landscaping shall be completed within six (6) months of the date of approval. The SPARC may grant extensions for excusable delays due to weather or seasonal restrictions. Section 8.11 Notice Upon Completion of Work. Upon completion of the improvements and all other installations and work besides landscaping, the applicant shall give written notice of such completion to the SPARC and request the SPARC’s issuance of a Notice of Satisfactory Completion. Such notice and request will not be deemed given until received by the SPARC. Section 8.12 Inspection. The SPARC, or its representative, shall have the right to inspect the Lot and the work prior, during and after completion. Section 8.13 Notice of Satisfactory Completion. Prior to requesting a Certificate of Occupancy or Certificate of Completion from Garfield County, Colorado, the Owner must first obtain a Notice of Satisfactory Completion from the SPARC. The SPARC will issue a Notice of Satisfactory Completion if the improvements are completed in conformity with the approvals. Upon receipt of Notice of Satisfactory Completion, the applicant may proceed to request a Certificate of Occupancy or Certificate of Completion from Garfield County, Colorado. Failure to comply with the provisions of this paragraph shall subject the Owner to the imposition of fines, penalties and such other rights and remedies as may be available to the Association. Such failure to comply will also serve as a basis for denying the issuance of any Certificate of Occupancy or Certificate of Completion by Garfield County, Colorado and/or the basis for revoking any Certificate of Occupancy or Certificate of Completion obtained without compliance with the provisions of this paragraph. Section 8.14 Non-Compliance. In the event the Owner fails to comply with the terms of the approval in all respects, or fails to complete the work within the time specified above, the SPARC shall notify the applicant in writing specifying the particulars of the non-compliance. Upon a receipt of Notice of Non-Compliance, the applicant shall take such action as may be necessary to remedy and correct the deficiency. Section 8.15 Completion of Landscaping. The approved landscaping shall be completed within six (6) months after approval, or within six (6) months after issuance of the Certificate of Occupancy, whichever is later, subject to excusable delays, as determined by the SPARC, due to weather or seasonal restrictions. If the approved landscaping is not completed within such time, in the absence of a written extension issued by the SPARC, the Association shall commence to levy fines on a monthly basis which shall be assessed against the Lot. and which shall be subject to the collection and lien procedures set forth in this Declaration. The monthly fines shall be set at ten percent (10%) of the costs of completion, as estimated in writing by the SPARC, and shall continue on a monthly basis until the approved landscaping has been completed. The Association may waive such fines in the sole discretion of the Executive Board. Section 8.16 Non-Liability. There shall be no liability imposed on the SPARC, or the Association or any member of the Executive Board of the Association, or the Declarant for any loss, damage or injury arising out of or in any way connected with the performance of the duties of the SPARC, unless due to the wilful misconduct of the party to be held liable. No review or approval 15 by the SPARC shall be deemed approval of the improvement for conformance with building codes or other governmental laws and regulations, nor shall it be deemed approval from the standpoint of safety, whether structural or otherwise. An applicant seeking the approval of the SPARC for any matter shall provide the SPARC with a written waiver reaffirming the foregoing and releasing the SPARC, the Association, each member of the Executive Board of the Association and the Declarant from any and all liability arising from or related to the SPARC's approval thereof. Section 8.17 Construction Activities. The SPARC may promulgate Rules and Regulations concerning the use of temporary sanitary facilities, trash dumpsters, the use of streets and roads, and other activities associated with the construction of improvements within the Development. ARTICLE IX - ALLOCATED INTERESTS Section 9.1. Common Elements. Each Lot’s undivided interest in the Common Elements shall be a fractional share, the numerator of which shall be one (1) and the denominator of which shall be the total number of all Lots within the Development. The resulting fractional interest shall be converted and expressed as a percentage interest, rounded to the nearest one hundredth (1/100th) of a percentage point where practicable. However, in order for the sum of the percentage interests in the Common Elements to equal one hundred percent (100%), the rounding necessary to express a Lot’s percentage interest may include the rounding of a fractional percentage point to either the next higher or the next lower one hundredth (1/100th) of the percentage point, regardless of which is nearest. Section 9.2. Liability for Common Expenses. Each Lot’s share of liability for Common Expenses shall be in the same percentage as the Unit’s percentage interest in the Common Elements, however, nothing contained in this Article shall prohibit certain Common Expenses from being apportioned to a particular Lot or Lots as provided elsewhere in this Declaration. Section 9.3. Voting Rights. The voting rights shall be allocated equally among the Lots as elsewhere provided in this Declaration. Section 9.4. Allocation of Interest. With reference to the foregoing criteria, the interest of each Lot has been determined and is hereby allocated as follows: Undivided Interest In Liability for Lot Common Elements Common Expenses Lot 1 8.333%8.333% Lot 2 8.333%8.333% Lot 3 8.333%8.333% Lot 4 8.333%8.333% Lot 5 8.333%8.333% Lot 6 8.333%8.333% Lot 7 8.333%8.333% Lot 8 8.333%8.333% 16 Lot 9 8.333%8.333% Lot 10 8.333%8.333% Lot 11 8.333%8.333% Lot 12 8.333%8.333% The foregoing allocation of interest shall be deemed binding and conclusive. ARTICLE X - DECLARANT'S RESERVED DEVELOPMENT RIGHTS Section 10.1. Rights Reserved. The Declarant hereby reserves, to the fullest extent permitted by law, the following development rights and the right to supplement and amend this Declaration in the exercise of all or any of the following development rights: (a) The right to construct and complete the Common Elements in any sequence and order that the Declarant shall determine; (b) The right to construct underground utility lines, pipes, wires, ducts, conduits and other facilities across any portion of the Development for the purpose of furnishing utilities and other services to buildings and improvements to be constructed within the Development; © The right to withdraw and grant easements and licenses to public utility companies and to convey improvements within those easements anywhere in the Development not occupied by buildings for the purposes mentioned; (d) The right to reconfigure all or any of the Lots and Common Elements with the approval of Garfield County, Colorado; (e) The right to prepare, execute and record an Amendment or Amendments to this Declaration, by way of a Supplemental Declaration or otherwise, assigning or reassigning identifying numbers to each Lot created and describing the Common Elements thereby changed or created and to prepare, execute and record therewith, an additional, supplemental or amended Plat depicting and addressing the matters required by the Act or deemed proper by the Declarant in connection with any such amendment; (f) To exercise the “Special Declarant Rights” defined in the Act, including the rights to construct and complete the improvements, to exercise any development right, including those expressly reserved in this Declaration, to maintain sales offices, management offices, model dwelling units and signs advertising the Development, to use easements through the Common Elements for the purpose of making improvements within the Development and to appoint and to remove any officer of the Association or any Executive Board member during the period of Declarant control herein set forth. Section 10.2. Exercise of Development Rights. Any development right may be exercised with respect to different portions of the Development, at different times and in such sequence as the Declarant may determine. No assurances are made as to which portions of the Development may 17 be subjected to the exercise of each development right, or in which order each development right may be exercised or applied to any portion of the Development. If any development right is exercised in any portion of the Development, that development right need not be exercised in all or any portion of the remainder of the Development. The exercise of development rights with respect to some portions of the Development will not obligate the Declarant to exercise any development rights as to other portions. No assurances are made by Declarant as to whether Declarant will exercise its development rights herein reserved or any of them or as to the order in which any portion of the Property may be developed. Section 10.3. Reserved Construction Easement. Declarant reserves the right to perform warranty work, repairs and construction work in the Lots and Common Elements, to store materials in secure areas, and to control and have the right of access to work and make repairs until completion of the entire Development. All work may be performed by the Declarant without the consent or approval of the Executive Board or the Association. The Declarant has an easement through the Common Elements as may be reasonably necessary for the purpose of discharging the Declarant's obligations or exercising Declarant's rights, whether arising under the Act or reserved in this Declaration. This easement and the reserved rights attendant thereto includes the right to convey access, utility and drainage easements to any special district, governmental authority, public utility or the State of Colorado. Section 10.4. Promotional Activity of Declarant. The Declarant may maintain a sales office or management office within any Lot or Lots owned by the Declarant. Any Lot or Lots owned by Declarant may also be used as a model for promotional purposes. Declarant reserves the right to post and maintain signs and displays in Lots owned by the Declarant and in the Common Elements in order to promote sales of Lots. Declarant also reserves the right to conduct general sales activities in a manner which will not unreasonably disturb the rights of Lot Owners. Section 10.5. Removal of Declarant's Property. Declarant reserves the right to remove and retain all of its property and equipment used in the sales, management, construction and maintenance of the Development whether or not the same have become fixtures. Section 10.6. No Interference. Neither the Association nor any Lot Owner may take any action or adopt any rule that will interfere with or diminish any reserved rights of the Declarant, without the prior written consent of the Declarant. Section 10.7. Location of Lots. The location of the dwelling units and the Lots and the identification of the Common Elements are not restricted or regulated other than by the building envelopes now or hereafter approved by Garfield County, Colorado. The Declarant reserves the right to establish or change the building envelopes with the approval of Garfield County, Colorado, provided that the Declarant shall have no right to alter the boundaries of any Lot which the Declarant does not own. Section 10.8. Time Limit. The development rights reserved to the Declarant must be exercised within twenty-five (25) years from the date of this Declaration. 18 Section 10.9. Release or Assignment of Declarant's Rights. Declarant may release or transfer any or all the Declarant's rights reserved under this Article or elsewhere in this Declaration, but only by instrument acknowledged in the manner of a Deed and recorded in the records of the Clerk and Recorder of Garfield County, Colorado. Declarant may restrict or limit the exercise of any rights and interest so assigned. Any successor in interest to Declarant, in respect to any portion of the Declarant's rights hereunder, may further assign and transfer such rights and interests in like manner, but only to the extent expressly permitted in the assignment from the Declarant. ARTICLE XI - DECLARANT'S RIGHTS TO CONTROL THE ASSOCIATION Section 11.1. This Article Controls. The provisions of this Article shall control all inconsistent and conflicting provisions contained elsewhere in this Declaration or in the Bylaws of the Association. Section 11.2. Period of Declarant Control. There shall be a period of Declarant control of the Association, during which a Declarant, or persons designated by the Declarant, may appoint and remove the officers of the Association and members of the Executive Board. (a) The period of Declarant control shall terminate no later than the earlier of (I) sixty (60) days after conveyance of seventy-five percent (75%) of the Lots that may be created in the Community to Lot Owners other than a Declarant; or (ii) two years after the last conveyance of a Lot by the Declarant in the ordinary course of business; or (iii) two (2) years after any right to add new Lots was last exercised. (b) Not later than sixty (60) days after conveyance of twenty-five percent (25%) of the Lots that may be created to Lot Owners other than a Declarant, at least one member and not less than twenty-five percent (25%) of the members of the Executive Board shall be elected by Lot Owners other than the Declarant. Not later than sixty (60) days after conveyance of fifty percent (50%) of the Lots that may be created to Lot Owners other than a Declarant, not less than thirty-three and one-third percent (33 1/3%) of the members of the Executive Board must be elected by Lot Owners other than the Declarant. (c) Except as otherwise provided in C.R.S. §38-33.3-220(5), not later than the termination of any period of Declarant control, the Lot Owners shall elect an Executive Board of at least three members, at least a majority of whom must be Lot Owners other than the Declarant or designated representatives of Lot Owners other than the Declarant; and the Executive Board shall elect the officers and the Executive Board members and officers shall take office upon election. (d) Notwithstanding any provision of this Declaration or the Bylaws to the contrary, following notice under C.R.S. § 38-33.3-308, the Lot Owners, by a vote of sixty-seven percent (67%) of all Lot Owners present and entitled to vote at a meeting of the Lot Owners at which a quorum is present may remove a member of the Executive Board with or without cause other than a member appointed by the Declarant. 19 Section 11.3. Voluntary Surrender. The Declarant may voluntarily surrender the right to appoint and remove officers and members of the Executive Board before termination of the period of Declarant control set forth above. In that event, the Declarant may require that, for the duration of the period of Declarant control, specified actions of the Association or Executive Board as described in a recorded instrument executed by the Declarant, be approved by the Declarant before becoming effective. Section 11.4. Association's Records. Within sixty (60) days after termination of Declarant's control and the election of a new Executive Board by the members, the Declarant shall deliver to the Association all records and property of the Association held or controlled by the Declarant as prescribed by the Colorado Common Interest Ownership Act. ARTICLE XII - USE RESTRICTIONS Section 12.1. Use of Lots. All Lots shall be occupied and used for residential dwelling purposes only. No activities shall be conducted upon any Lot which cause an unreasonable disturbance to other Lot Owners or which are not permitted by applicable zoning laws. Whether an activity causes an "unreasonable disturbance" within the meaning of this Section may be determined by the Executive Board of its own accord or upon the written request of any Lot Owner. Section 12.2. No Resubdivision. No further subdivision of any Lot shall be permitted. Section 12.3. Leases. Any lease agreement shall provide that the terms of the lease shall be subject in all respects to the provisions of this Declaration, the Articles of Incorporation, By-Laws and duly promulgated Rules and Regulations of the Association, and that any failure by the tenant to comply with the terms of such documents shall be a default under the lease. All leases shall be in writing. No Owner shall be permitted to lease a dwelling unit for transient or hotel purposes; nor shall any Owner lease only a room or rooms which consist of less than the entire dwelling unit. Other than as provided in this Section, there is no restriction on the right of any Owner to lease his property. Section 12.4. Animals. No animals of any kind shall be raised, bred or kept within the Development, except that dogs and cats may be kept, provided that they are not kept, bred or maintained for any commercial purpose and that such pets are at all times under the control of their Owner, well-mannered and behaved; and provided further that, in no event shall any Owner(s) or occupant(s) of any Lot keep more than a total of two (2) such animals, in any combination, at any time. Notwithstanding the foregoing, the Executive Board may promulgate rules and regulations concerning the keeping of dogs and cats within the Development, which are more restrictive than those limitations set forth above. By way of example and not by way of limitation, the Executive Board shall have the right to absolutely prohibit the keeping of dogs or cats, or to implement a plan of special pet assessment dues which shall be payable by any Owner who keeps a dog or cat within the Development. 20 Section 12.5. Alterations. No fences, walls, decks, balconies or additions to any building or other structure shall be constructed or installed without the approval of the Executive Board, except to replace or repair the initial construction previously approved by the Executive Board. Section 12.6. Signs. No signs shall be placed or erected upon any portion of the Development nor shall any signs be displayed from any window or doorway of any dwelling unit, provided that the prohibitions of this Section shall not apply to Declarant or to “For Sale” signs advertising Lots in the Development. Section 12.7. Antennas. No television or radio antennas or satellite dish of any kind shall be placed, allowed or maintained upon any portion of the improvements or within the Development without the written approval of the Executive Board. Section 12.8. Garbage and Trash. No refuse, garbage, trash, lumber, grass, shrub or tree clippings, plant waste, compost, metal, bulk materials, scrap or debris of any kind shall be kept, stored or allowed to accumulate within the Development, except in prescribed trash collection areas or dumpsters approved by the Executive Board. Section 12.9. Clotheslines. No clotheslines shall be permitted on any part of the Development. No laundry or wash shall be dried or hung outside any dwelling unit. Section 12.10. Parking. On-street parking is prohibited. Residents of the Development must utilize the driveways and garages serving their respective Lots for parking. Section 12.11. Fences. No fence shall be erected, maintained, repaired or replaced without the prior approval of the Executive Board. Section 12.12. Maintain Appearance. No improvements constructed upon any parcel shall be permitted to fall into disrepair and each and every such improvement shall at all times be kept in good condition and repair and adequately painted, stained or otherwise finished and maintained. Section 12.13. Vehicle Repairs. No maintenance, servicing, repair, dismantling or repainting of any type of vehicle, boat, camper, trailer, machine or equipment may take place within the Development outside of a garage, unless completed within twenty-four (24) hours after commencement of the same. Section 12.14. Trailers, Campers, Recreational and Junk Vehicles. No boat, camper, snowmobile, four-wheeler, motorcycle (on or off supporting vehicles), trailer, tractor, industrial or commercial vehicle (cab or trailer), towed trailer unit, disabled, junk or abandoned vehicles, motor home, mobile home, recreational vehicle or any vehicle, the primary purpose of which is recreational, sporting or commercial use, shall be stored within the Development outside of a garage. For purposes of this covenant, any one ton or smaller vehicle commonly known as a pickup truck, shall not be deemed a commercial vehicle. 21 Section 12.15. Prohibitions. No firearms shall be discharged within the Development. No noxious or offensive activity of any type shall be carried on within the Development nor shall anything be done or permitted which may be or become a nuisance or danger to the Owners or occupants of the Development. Without limiting the generality of any of the foregoing provisions, no exterior speakers, horns, whistles, bells or other sound devices (other than security devices used exclusively for security purposes) shall be located, used or placed within the Development. Section 12.16. No Hazardous Activities. No activities shall be conducted within the Development which are unsafe or hazardous or constitute a potential danger to any person or property. Without limiting the generality of the foregoing, no open fires shall be lighted or permitted within the Development. Section 12.17. Underground Utilities. All extensions from the common trunk lines of all electrical, telephone, cable tv and other utility lines shall be accomplished utilizing underground construction and installation technique and shall not be carried on overhead poles nor above the surface of the ground. ARTICLE XIII - INSURANCE Section 13.1. Association to Maintain Insurance. Commencing not later than the time of the first conveyance of a Lot to a person other than the Declarant, the Association shall maintain to the extent reasonably available: (a) Property insurance on the Common Elements and on the dwelling units themselves for broad form covered causes of loss. Such coverage shall afford protection against loss or damage by fire and other hazards covered by a standard extended coverage endorsement and such other risks as from time to time shall be customarily covered with respect to buildings similar in construction, location and use, as the buildings within the Development, including, but not limited to vandalism and malicious mischief. The amount of insurance must be not less than the full insurable replacement cost of the insured property, less applicable deductibles at the time the insurance is purchased and at each renewal date, exclusive of land, excavations, foundations and other items normally excluded from property policies; provided that the casualty protection on the buildings and improvements maintained by the Association shall insure the improvement only to the interior stud face of the walls, ceilings and floors. It shall be the responsibility of each Owner to insure the interior finished surface materials of the walls, ceilings and floors, such as drywall, plaster, paneling, wallpaper, paint, tile, wood and carpeting, together with all cabinets, furnishings, fixtures, appliances, personal property, and other contents of the dwelling unit. The named insured shall be the Association, individually, and as agent for the Owners and their Mortgagees, without naming them. Provisions shall be made for the issuance for mortgagee endorsements and memoranda of insurance to the Mortgagees of the Owners. Such insurance policy shall provide that payments by the insurer for losses shall be made to the Association or to an insurance trustee in the State of Colorado designated by the Association for that purpose. Such insurance policy shall contain a “severability of interest” clause or endorsement which 22 shall preclude the insurer from denying the claim of a Lot Owner because of negligent acts of the Association or other Lot Owners. The scope of coverage must include all other coverage in the kinds and amounts commonly required by private institutional mortgage investors for projects similar in construction, location, and use. (b) Commercial general liability insurance against claims and liabilities arising in connection with the ownership, existence, use or management of the Common Elements with coverage limits as deemed sufficient in the judgment of the Executive Board, but in no event less than $1,000,000 per occurrence and $2,000,000 aggregate, insuring the Executive Board, the Association, the management agent, if any, and their respective employees, agents, and all persons acting as agents. The Declarant shall be included as an additional insured in Declarant's capacity as a Lot Owner and board member. The Owners (Lot Owners) shall be included as additional insureds, but only for claims and liabilities arising in connection with the ownership, existence, use or management of the Common Elements. The insurance shall cover claims of one (1) or more insured parties against other insured parties. Section 13.2. Non-Availability. If the insurance described above is not reasonably available, or if any policy of such insurance is canceled or not renewed, without a replacement policy therefore having been obtained, the Association promptly shall cause notice of that fact to be hand delivered, or sent prepaid, U.S. mail, to all Lot Owners. Section 13.3. Additional Coverage Required. Pursuant to the Act, the Property Insurance and the Commercial General Liability Insurance required above, must provide that: (a) Each Owner is an insured person under the policy with respect to liability arising out of such Lot Owner's interest in the Common Elements or membership in the Association; (b) The insurer waives its rights to subrogation under the policy against any Lot Owner or member of his household; (c) No act or omission by any Lot Owner, unless acting within the scope of such Lot Owner's authority on behalf of the Association, will void the policy or be condition to recovery under the policy; and (d) If, at the time of a loss under the policy, there is other insurance in the name of a Lot Owner covering the same risk covered by the policy, the Association's policy provides primary insurance. Section 13.4. Adjustment of Property Loss. Any loss covered by the Property Insurance described above, must be adjusted with the Association, but shall be held, administered and applied in the manner provided by the Colorado Common Interest Ownership Act, C.R.S. §38-33.3-313(5) - (9). 23 Section 13.5. Procedures; Deductibles; Assessments. The Association may adopt and establish written nondiscriminatory policies and procedures relating to the submittal of claims, responsibility for deductibles, and any other matters of claims adjustment. To the extent the Association settles claims for damages to real property, it shall have the authority to assess negligent Lot Owners causing such loss or benefitting from such repair or restoration, all deductibles paid by the Association. In the event that more than one (1) Lot is damaged by a loss, the Association, in its reasonable discretion, may assess each Lot Owner a pro rata share of any deductible paid by the Association. Section 13.6. Owner's Insurance. An insurance policy issued to the Association does not obviate the need for Lot Owners to obtain insurance for their own benefit. Section 13.7. Officers and Directors. The Association shall keep and maintain Officers and Directors errors and omissions and personal liability coverage, with coverage limits of not less than $1,000,000 per occurrence and $2,000,000 aggregate, to protect the officers and directors from personal liability in relation to or arising out of their duties on behalf of the Association. Section 13.8. Fidelity Bonds and Insurance. The Association shall obtain adequate fidelity bonds or insurance coverage to protect against dishonest acts of any Lot Owner, Executive Board member, Officer, employee or Manager of the Association handling or responsible for Association funds. Such fidelity bonds or insurance coverage shall not be less than the aggregate amount of two (2) months current assessments for the entire Property, plus reserves as calculated from the current budget of the Association, or $50,000, whichever is greater. The Association may carry fidelity bonds or insurance in such greater amount as the Executive Board deems prudent. Section 13.9. Managing Agent Insurance. The Association shall require any independent contractor employed for purposes of managing the Community to carry fidelity bonds or insurance for the benefit of the Association to the same extent as the Association or with such greater coverage limits as the Association or the Act may require, for the benefit of the Association and any such Manager shall maintain and submit evidence of such coverage to the Association. Section 13.10. Worker's Compensation and Employer's Liability Insurance. The Association shall obtain worker's compensation and employer's liability insurance and all other similar insurance with respect to its employees in the amounts and forms as may now or hereafter be required by law. Section 13.11. Other Insurance. The Association may also obtain insurance coverage against any such other risks of a similar or dissimilar nature, as deemed appropriate. Section 13.12. Insurance Expense. The cost of all insurance which the Association is required or permitted to maintain, shall be assessed to the Lot Owners as a Common Expense. Section 13.13. Annual Review. The Executive Board shall review the insurance coverage for the Association at least annually for the purpose of determining the amount of insurance required. 24 Section 13.14. Duty to Repair. Any portion of the Community for which insurance is required under this Article which is damaged or destroyed must be repaired or replaced promptly by the Association unless: the Community is terminated in accordance with the Act; the repair or replacement would be illegal; sixty-seven percent (67%) of the Lot Owners, including every Owner of a structure that will not be rebuilt, vote not to rebuild; or, prior to the conveyance of any Lot to a person other than the Declarant, the holder of a Deed of Trust or Mortgage on the damaged portion of the Community rightfully demands all or a substantial part of the insurance proceeds. ARTICLE XIV - ASSESSMENT CERTIFICATES AND NOTICES Section 14.1. Assessment Certificates. Upon request, the Association shall provide any Owner, prospective purchaser, Mortgagee or prospective Mortgagee, of any Lot in the Community a certificate in writing signed by an officer of the Association setting forth the amount of any assessments, interest or late charges due in connection with any specified Lot. A reasonable charge may be made by the Association for the issuance of such certificates. Section 14.2. Notice of Assessment Liens. Upon written request, delivered personally or by certified mail, first-class postage prepaid, return receipt requested, to the Association's registered agent, the Association shall furnish to a Lot Owner or his designee, or to a holder of a Security Interest, mortgage or deed of trust, or its designees, a written statement setting forth the amount of unpaid assessments currently levied against such Owner's Lot. This statement shall be furnished within fourteen (14) days after receipt of the request, and is binding on the Association, the Executive Board and every Lot Owner. If no statement is furnished to the Lot Owner or holder of the Security Interest, mortgage or deed of trust, or to his designee, delivered personally or by certified mail, first-class postage prepaid, return receipt requested, to the inquiring party, then the Association shall have no right to assert a lien upon the Lot for unpaid assessments which were due as of the date of the request. ARTICLE XV - GENERAL PROVISIONS Section 15.1. Notices to Owners. Notice to an Owner of matters effecting the Community by the Association or by another Owner, shall be sufficiently given if such notice is in writing and is delivered personally, by courier or private service delivery, or by deposit in the U.S. mail, postage prepaid, addressed to such Owner at the registered mailing address furnished by the Owner to the Association in accordance with the By-Laws. Such mailing shall be deemed adequate, whether mailed ordinary mail, certified mail or registered mail. Section 15.2. Easement Rights. The Declarant has an easement through the Common Elements as may be reasonably necessary for the purpose of discharging a Declarant's obligations or exercising Special Declarant Rights, whether arising under this Declaration or the Act. 25 Section 15.3. Covenants to Run with the Land. This Declaration shall run with the land and be a burden and a benefit to the Lots within the Community. Section 15.4. Enforcement. The failure of any Owner to comply with the provisions of this Declaration or with the Articles of Incorporation, By-Laws or the duly promulgated Rules and Regulations of the Association, shall give rise to a cause of action in the Association, as well as any aggrieved Lot Owner for the recovery of damages or injunctive relief, or both. The failure of the Association or any Owner to enforce any such rights, shall in no event be deemed a waiver of the right to do so in the future. Section 15.5. Amendments. The Declarant may amend the Declaration and any Plat to correct clerical, typographical or technical errors or to comply with the requirements, standards or guidelines of recognized secondary mortgage markets, the Department of Housing and Urban Development, the Federal Housing Administration, the Veterans Administration, the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association or the Federal National Mortgage Association. The Declarant may also amend this Declaration in the exercise of Declarant's reserved development rights and as otherwise permitted by the Act. The Association may amend this Declaration with respect to those matters expressly permitted by the Act. Except as provided above, this Declaration may be amended only by the vote or agreement of Lot Owners representing at least sixty-seven percent (67%) of the Lots within the Community and by the recordation of a certified copy of the Resolution of Amendment, signed and acknowledged by the President and Secretary of the Association, recorded in the records of the Clerk and Recorder of Garfield County, Colorado. Section 15.6. Termination of Declaration. This Declaration shall not be terminated except upon the written agreement of Owners representing not less than sixty-seven percent (67%) of the Lots within the Community, and must be evidenced by a Termination Agreement or ratifications thereof, in the same manner as a deed, by the requisite number of Lot Owners. The Termination Agreement must specify a date after which the agreement will be void unless it is recorded before that date. The Termination Agreement and all ratifications thereof must be recorded in Garfield County, Colorado, and shall be effective only upon recordation. Section 15.7. Restoration. If at any time all Owners and all holders of first mortgages shall agree that the Community has become obsolete and shall approve a plan for its renovation or restoration, the Association shall promptly cause such renovation or restoration to be made according to such plan. All Owners shall be bound by the terms of such plan and the cost of the work shall be a Common Expense. Section 15.8. Duration. This Declaration shall continue in effect until revoked or terminated in the manner provided above. Section 15.9. Severability. If any clause or provision of this Declaration is determined to be illegal, invalid or unenforceable under present or future laws, all other terms and provisions hereof shall nevertheless remain in full force and effect. 26 IN WITNESS WHEREOF, this Declaration of Covenants, Conditions and Restrictions has been executed this day of , 2024. DECLARANT: SUNLIGHT PARKWAY, LLC, a Colorado limited liability company By: Jason M. Neuman, Manager STATE OF COLORADO ) ) ss. COUNTY OF GARFIELD ) The foregoing instrument was acknowledged before me this ____ day of _____________, 2024, by Jason M. Neuman, as Manager of Sunlight Parkway, LLC. Witness my hand and official seal. My commission expires: Notary Public 27