AMENDED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR BRECKENRIDGE HOMEOWNERS ASSOCIATION

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1 AMENDED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR BRECKENRIDGE HOMEOWNERS ASSOCIATION THIS DECLARATION is made on the date hereinafter set forth by Breckenridge Homeowners Association, an Idaho Non-Profit Organization, hereinafter referred to as Association. WITNESSETH: WHEREAS, the Association is the Owner of certain common community areas of real property situated in the City of Twin Falls, County of Twin Falls, State of Idaho, hereafter referred to as Property, which is included in and more particularly described as: A Parcel of Land located in S 2 SE 4, and Government Lots 4 and 5, Section 33, Township 9 South, Range 17 East, Boise Meridian, Twin Falls County, Idaho; being a portion of Breckenridge Estates Subdivision, and being more particularly described as follows: COMMENCING at the Southeast corner of Section 33; THENCE South 89 51'19" West, feet to the South Quarter Corner of Section 33; THENCE North 00 40'01" East, feet along the West boundary of said Sl/2SEl/4; THENCE North 89 29'59" East, feet to the Southwest corner of Breckenridge Estates Subdivision ; THENCE North 01 25'51" East, feet to the REAL POINT OF BEGINNING; THENCE North 01 25'51" East, feet to a point on the Rim of the Snake River Canyon; THENCE along the rim of the Snake River Canyon as follows: North 76 37'28" East, feet; North 85 06'47" East, feet; North 89 21'07" East, feet; South 81 31'35" East, feet; North 87 58'08" East, feet; South 84 26'46" East, feet, to a point on the East boundary of Government Lot 5; THENCE South 00 53'49" West, feet, along the East boundary of said Lot 5; THENCE South 85 12'41" East, feet; THENCE South 75 25'41" East, feet; THENCE North 89 51'19" East, feet, to a point on the City of Twin Falls street Right of Way Instrument No ; THENCE South 80 37'07" East, feet along said City Right of Way; 1

2 THENCE along a curve right on said Right of Way; 75 14'59"; R 51.00'; A 66.98'; C 62.27'; LCB South 42 59'37" East; THENCE South 05 22'08" East, feet, along said City Right of Way; THENCE South 01 22'48" West, feet, along said City Right of Way; THENCE along a curve right; 70 00'00"; R 20.00'; A 24.43'; C 22.94'; LCB South 36 22'48" West; THENCE South 71 22'48" West, feet; THENCE along a curve right; 17 52'32"; R '; A 68.64'; C 68.36'; LCB South 80 19'04" West; THENCE South 89 15'20" West, feet; THENCE along a curve left; 45 00'00"; R '; A '; C '; LCB South 66 45'20" West; THENCE South 44 15'20" West, feet; THENCE along a curve left; 90 00'00"; R 20.00'; A 31.42'; C 28.28'; LCB North 00 44'40" West; THENCE North 45 44'40" West, feet; 2

3 THENCE along a curve right; 45 00'00"; R '; A '; C '; LCB North " West; THENCE North 00 44'40' West, feet; THENCE along a curve left; '39"; R 20.00'; A 38.33'; C 32.73'; LCB North 55 38'30" West; THENCE North 09 05'16" West, feet; THENCE South 69 27'41" West, feet; THENCE North 38 18'09" West, feet; THENCE South 89 51'19" West, feet to the REAL POINT OF BEGINNING containing approximately acres. WHEREAS, Grantor established on the Property an exclusive planned residential community which contains residential dwelling structures thereon, with open spaces, common areas with recreational facilities and pedestrian walkways, created for the benefit of said community through the granting of specific rights, privileges and easements of enjoyment which may be shared and enjoyed by all of the residents thereof, subject to the Breckenridge Estates Planned Unit Development Agreement with the City of Twin Falls, State of Idaho. WHEREAS, Association desires to assure the attractiveness of the individual lots and community facilities within the Property; to prevent any future impairment thereof; to prevent nuisances; to preserve, protect and enhance the values and amenities of the Property; and to provide for the maintenance of the Property including said open spaces, common areas with recreational facilities and pedestrian walkways; and in order to achieve these objectives, the Association is desirous of subjecting the Property to the covenants, conditions, restrictions, easements, charges and liens set forth herein, each and all of which is and are for the benefit of the Property and each Owner thereof. NOW, THEREFORE, Association hereby declares that the Property and each individual lot, parcel, and each and every part and portion thereof shall be held, sold, conveyed, used, occupied and improved subject to the following easements, restrictions, covenants and conditions, which are for the purpose of protecting the value and desirability of, and which shall run with and bind, the Property and each individual lot, parcel, and each and every part and portion thereof, and be binding on all parties having any right, title or interest in the Property and each individual lot, parcel, and each and every part and portion thereof, their heirs, successors and assigns, and shall inure to the benefit of each Owner thereof. 3

4 ARTICLE I DEFINITIONS 1.1 "Architectural Committee" shall mean the committee created pursuant to Article VIII hereof. 1.2 "Articles" shall mean the Articles of Incorporation of the Association. 1.3 "Assessments" shall mean those payments required of Owners, including Regular, Special and Limited Assessments of the Association as further defined in this Declaration. 1.4 "Association" shall mean the Breckenridge Homeowners Association, an Idaho Nonprofit Corporation, its successors and assigns, established by Grantor pursuant to Article III of this Declaration to exercise the powers and to carry out the duties set forth in this Declaration. 1.5 "Association Rules" shall mean those rules and regulations promulgated by the Association governing conduct upon and use of the Property, the imposition of fines and forfeitures for violation of Association Rules and Regulations, and procedural matters for use in the conduct of business of the Association. 1.6 "Board" shall mean the Board of Directors of the Association. 1.7 "Building Lot" shall mean one or more individual lots within the Property as specified or shown on the Plat (excluding Common Area lots), hereinafter referred to as Residential Property. 1.8 "Bylaws" shall mean the Bylaws of the Association. 1.9 "Common Area" shall mean all real property in which the Association holds an interest or which is held by the Association or maintained, permanently or temporarily for the common use, enjoyment and benefit of every Residential Property Owner (once construction of Improvements are fully completed and the Residential Property is occupied thereon) which includes the real property legally described on page 1 and 2 and shall include, without limitation, all such parcels that are designated as common open spaces, common landscaped areas, and common recreational facilities and pedestrian walkways, subject to the Breckenridge Estates Planned Unit Development Agreement with the City of Twin Falls, State of Idaho. Additional Common Area may be established from time to time by the Association on any portion of the Property by describing it on a designed plat, by granting or reserving it in a deed or other instrument, or by designating it pursuant to this Declaration "Declaration" shall mean this Declaration Of Covenants, Conditions And Restrictions For Breckenridge, as it may be amended from time to time "Design Guidelines" shall mean the design and construction guidelines approved by the Architectural Committee "Garden Homes" shall refer to the Residential Property Tract which is presently zoned for eleven (10) zero-lot-line dwelling lots and (1) single-family detached dwelling; or a combination of both zero-lot-line and single-family detached dwelling lots and which shall not exceed that density. 4

5 1.13 "Grantor" shall mean Breckenridge Estates Limited Partnership, an Idaho limited partnership, or its successor in interest as developer of Breckenridge, or any person or entity to whom the rights under this Declaration are expressly transferred by Breckenridge Estates Limited Partnership or its successor Improvement(s)" shall mean the construction of any residential dwelling, any structure, facility or system, or other improvement or object, whether permanent or temporary, which is erected, constructed or placed upon, under or in any portion of the Property, including but not limited to buildings, fences, streets, drives, driveways, sidewalks, pedestrian walkways, curbs, landscaping, signs, lights, mailboxes, electrical lines, pipes, pumps, ditches, residences, recreational facilities, and fixtures of any kind whatsoever "Limited Assessment(s)" shall mean a charge against each Residential Property Owner for the purpose of allocating the costs of specific maintenance provided by the Association as specified in Article "Manor Homes" shall refer to the Residential Property Tract, which includes the potential for twenty-eight (28) zerolot-line dwelling lots; or a combination of both zero-lot-line and single-family detached dwelling lots Member" shall mean each person or entity holding a membership in the Association Owner" shall mean the person or other legal entity, holding fee simple interest of record to a Property or Residential Property which is a part of the planned community, and such shall include sellers under executory contracts of sale, but shall exclude those having such interest merely as security for the performance of an obligation "Person" shall mean any individual, partnership, corporation or other legal entity "Plat" shall mean the subdivision plat of the Property as recorded at the Office of the County Recorder, Twin Falls County, State of Idaho, as the same may be amended by duly recorded amendments thereof "Property" shall refer to the real property encompassed by Breckenridge, A Planned Residential Community, situated in the City of Twin Falls, County of Twin Falls, State of Idaho, hereafter referred to as Property, which is more particularly described on page 1, 2 and 3 of this Declaration "Recreational Facilities" shall refer to real improvements within the Common Area for the common use, enjoyment and benefit of each Residential Property Owner (once construction of Improvements are fully completed and the Residential Property is occupied thereon), subject to the Breckenridge Estates Planned Unit Development Agreement with the City of Twin Falls, State of Idaho "Regular Assessment(s)" shall mean the portion of the cost of maintaining, improving, repairing, managing and operating the Common Areas and all Improvements located thereon, and the other costs of an Association which are to be levied against the Property of and paid by each Residential Property Owner to the Association pursuant to the provisions of this Declaration "Residential Property" shall refer to any Building Lot with or without appurtenant Improvement(s) thereon. 5

6 1.25 "Special Assessment(s)" shall mean the portion of the costs of capital improvements or replacements, equipment purchases, repairs, replacements or shortages in Regular Assessments which are authorized and to be paid by each Residential Property Owner to the Association pursuant to the provisions of this Declaration Special Project Assessments shall mean a charge against each involved Residential Property Owner for the purpose of allocating future project costs provided by the association as specified in Article Village Homes" shall refer to the Residential Property Tract which includes twenty-eight (28) single-family detached dwelling lots. 6

7 ARTICLE II GENERAL AND SPECIFIC RESTRICTIONS 2.1 Structures - Generally. All structures are to be designed, constructed and used in such a manner as to promote general compatibility and architectural harmony among and between all Owners and all improved properties within the Property and the residential community contemplated by this Declaration Use. All Residential Property shall be used exclusively for zero-lot-line or single-family detached dwelling purposes. No Residential Property shall be improved except with a single-family detached dwelling in the Village Homes; and no Residential Property shall be improved except with a zero-lot-line or single-family detached dwelling in the Manor and Garden Homes. Such other accessory structures may be approved by the Architectural Committee, which are not otherwise prohibited by the provisions of this Declaration. No business or home occupation shall be conducted on any Residential Property or from any other structure except that a home office may be maintained provided that such use is not apparent from the exterior of the structure, and such use does not generate third party traffic. The prohibition against use of any Residential Property or any other structure thereon for the conduct of any business constitutes a prohibition against (and prohibits) use of any Residential Property or any other structure thereon for or as a " half-way house," treatment center, a medical facility of any kind, shelter home, school, day-care center or other similar use, (notwithstanding the provisions of Section and , Idaho Code). The occupancy on a Residential Property shall be limited to not more than two persons and their children, living together as a single housekeeping unit Architectural Committee Review. No Improvements which will be visible above ground or which will ultimately affect the visibility of any above ground Improvements, or which will affect drainage shall be built, erected, placed or materially altered on or removed from the Property unless and until the building plans, specifications, and plot plan or other appropriate plans and specifications have been reviewed in advance by the Architectural Committee and the same have been approved in writing. The review and approval or disapproval may be based upon the following factors: size, height, design and style elements, mass and form, topography, setbacks, finished ground elevations, architectural symmetry, drainage, color, materials, including roofing material, physical or aesthetic impacts on other properties, including Common Areas, artistic conformity to the terrain and the other Improvements on the Property, and any and all other factors which the requirements as to the approval of the architectural design shall not apply to the interior appearance of the Improvements. This Declaration is not intended to serve as authority for the Architectural Committee to control the interior layout or design of residential dwellings except to the extent incidentally necessitated by use, size and height restrictions Setbacks and Height. No residential dwelling or other structure (exclusive of fences and similar structures approved by the Architectural Committee) shall be placed nearer to the Residential Property lines than permitted by the setback requirements set forth in detail in the recorded Plat or than permitted by any more restrictive applicable zoning restriction, by any conditional use permit, or by a building envelope designated on the Plat or by the Architectural Committee. The Architectural Committee may restrict structural height 7

8 which varies from standard design plans for the Manor Homes, Garden Homes and Village Homes where such would adversely affect adjacent structures or the Property as a whole Accessory Structures. No detached structures shall be allowed on any Residential Property without the prior express written approval as to the location and all elements thereof by the Architectural Committee. Garages shall be constructed of, and roofed with, the same materials, and with similar colors and design as the dwelling on the same Residential Property. No patio covers are allowed unless with express written approval by the Architectural Committee and construction, and design thereof, are controlled by the Architectural Committee. No playhouses, pools, pool slides, diving boards, hot tubs, spas, or similar items shall extend higher than five (5) feet above the finished graded surface of the Residential Property upon which such item(s) are located unless specifically approved by the Architectural Committee. Basketball courts, tennis courts or backboards shall be allowed in the backyard of any Residential Property, provided that such courts or backboards are approved by the Architectural Committee and are not visible from any street, and do not promote noise or other nuisance that is offensive or detrimental to other Residential Property in the vicinity of the Residential Property or offensive or detrimental to the occupants of such other Residential Property Driveways. All driveways shall be composed of concrete and shall be properly graded to assure proper drainage. No driveway shall be wider than the garage to which said driveway leads unless approved by the Architectural Committee. All driveways shall be a minimum of twenty (20) feet in length Mailboxes. All mailboxes and stands will be of design, material and coloration, and shall be located at places approved by the Architectural Committee. Such approval may be in the form of specifications adopted as a rule by the Architectural Committee Fencing Lot line fencing in the Manor Homes is prohibited. Special privacy fencing or landscaping shall not be situated, constructed or maintained in the Manor Homes without express written approval of the Architectural Committee; the design, location and installation of which shall be in accordance with strict guidelines set forth by the Architectural Committee. Approved special fencing or landscaping installed by an Owner shall be the exclusive obligation of the Owner to maintain in accordance with Article 2.7 and shall not be subject to Limited Assessment No fence, including landscaping or boundary wall shall be situated, constructed or maintained in the Village Homes and Garden Homes without the prior written approval of the Architectural Committee. No fence, landscaping or boundary wall situated anywhere upon a Residential Property shall have a height greater than six (6) feet above the finished graded surface (adjacent to the fence) of the Residential Property upon which such fence, landscaping or boundary wall is situated. Any fence or boundary wall constructed on or near the lot line common to one or more properties shall be constructed as a "good neighbor" fence or wall. No fence shall be constructed so as to extend beyond the front plane of a residential dwelling Lighting. Exterior lighting on a Residential Property shall not be installed without prior Architectural Committee approval. Fixtures, standards and all exposed accessories shall be harmonious with building design, and shall be as approved by the Architectural Committee. Lighting shall be restrained in design, to 8

9 prevent excessive brightness and to prevent glare or direct lightfall onto adjoining Residential Property or streets. Notwithstanding the foregoing, private street lights of a design and luminescence approved by the City of Twin Falls shall be maintained by the Association, the expense of which shall be included as a part of the expense of the Common Area maintenance Access Restriction. No driveway or other access Improvement shall be constructed upon or across any Common Area Roofing Materials. Roof design and surface materials shall be consistent with the existing residential properties and are expressly subject to Architectural Committee approval. Heavy, long-life Architectural composition roofing shall be used in the Village Homes, Manor Homes, and Garden Homes. 2.2 Antennae. No exterior radio antenna, television antenna or other antenna of any type nor any satellite dish shall be erected or maintained on the Property or on any Residential Property unless it is approved by the Architectural Committee and located or screened in a manner acceptable to said Architectural Committee. 2.3 Insurance Rates. Nothing shall be done or kept on any Residential Property which will increase the rate of insurance on any other portion of the Property without the approval of the Owner of such other portion, nor shall anything be done or kept on the Property or a Residential Property which would result in the cancellation of insurance on any Residential Property owned or managed by the Association or which would be in violation of any law. 2.4 No Further Subdivision. No Residential Property may be further subdivided. 2.5 Signs. No sign of any kind shall be placed on any Residential Property or within the Common Area or displayed to the public view from any Residential Property or the Common Area except: (1) One (1) sign of customary and reasonable dimensions not to exceed three (3) feet by two (2) feet may be displayed by an Owner on or from a Residential Property advertising the residence for sale or lease. (2) Neighborhood Watch signs allowed subject to Board approval. 2.6 Nuisances. No rubbish or debris of any kind shall be placed or permitted to accumulate anywhere upon the Property, including the Common Area or vacant properties, except for refuse, garbage and trash placed in city approved containers. No odor shall be permitted to arise from any Residential Property or structure thereon so as to render the Property or any portion thereof unsanitary, offensive or detrimental to the Property or to its occupants. No noise or other nuisance shall be permitted to exist or operate upon any portion of the Property so as to be offensive or detrimental to the Property or to its occupants or to other Residential Property in the vicinity or to its occupants. Without limiting the generality of any of the foregoing provisions, and with the exception of home security system sound devices meeting the approval of the Architectural Committee, no exterior speakers, horns, whistles, bells or other sound devices, flashing lights or search lights shall be located, used or placed on the Property or any Residential Property without the prior written approval of the Architectural Committee. 9

10 2.7 Residential Property Exterior Surfaces Maintenance and Repair Obligations: Manor Homes: No Residential Property or residential exterior surface shall be permitted to fall into disrepair, and every Improvement on said Residential Property shall at all times be kept in good condition and repair. Except for specific maintenance provided by the Association through Limited Assessments as specified in Article ; maintenance and repair of all residential exterior surfaces and Improvements (including Private Gardens and special privacy fencing or landscaping as provided in Article ) in the Manor Homes shall be the exclusive obligation of the Owner. Landscaping maintenance (with the exception of private gardens approved by the Architectural Committee, including but not limited to flowers, trees, and vegetables which are installed by the Owner of a Residential Property; hereinafter referred to as Private Gardens ); private security gate maintenance and private street maintenance (where two or more properties share a private street) shall be provided by the Association through Limited Assessments specified in Article Maintenance and expense of all residential exterior surfaces (including Private Gardens and special privacy fencing or landscaping as provided in Article ) shall be the exclusive obligation of each individual Owner. In the event that any Owner shall permit any Improvement which is the responsibility of the Owner to maintain, to fall into disrepair so as to create a dangerous, unsafe, unsightly or unattractive condition, or so as to damage Residential Property or facilities on an adjoining Residential Property or the Common Area, the Board, upon fifteen (15) days prior written notice to the Owner of such Residential Property, shall have the right to correct such condition, and to enter upon such Owner's Residential Property for the purpose of doing so, and such Owner shall promptly reimburse the Association for the cost thereof. Such cost shall be a Limited Assessment against the Owner and shall create a lien enforceable in the same manner as other Assessments set forth in Article V of this Declaration. The Owner of the offending Residential Property shall be personally liable, and such Owner's Residential Property may be subject to a mechanic's lien for all costs and expenses incurred by the Association in taking such corrective acts, plus all costs incurred in collecting the amounts due. Each Owner shall pay all amounts due for such work within ten (10) days after receipt of written demand therefor, or the amounts may, at the option of the Board, be added to the amounts payable by such Owner as Regular Assessments. Each Owner shall have the remedial rights set forth herein if the Association fails to exercise its rights within a reasonable time following written notice by such Owner Village Homes. No Residential Property or residential exterior surfaces shall be permitted to fall into disrepair, and every Improvement on said Residential Property shall at all times be kept in good condition and repair. Except for specific maintenance provided by the Association through Limited Assessments as specified in Article ; maintenance and repair of all residential exterior surfaces and all Improvements (including, but not limited to landscaping, fencing, and private driveways) in the Village Homes shall be the exclusive obligation of the Owner. Private street maintenance, where two or more properties share a private street, shall be provided by the Association through Limited Assessments specified in Article Maintenance and expense of all residential exterior surfaces, landscaping, fencing and private driveways shall be the exclusive obligation of each individual Owner. 10

11 In the event that any Owner shall Permit any Improvement, which is the responsibility of the Owner to maintain, to fall into disrepair so as to create a dangerous, unsafe, unsightly or unattractive condition, or so as to damage Residential Property facilities on an adjoining Residential Property or the Common Area, the Board upon fifteen (15) days prior written notice to the Owner of such Residential Property, shall have the right to correct such condition, and to enter upon such Owner's Residential Property for the purpose of doing so, and such Owner shall promptly reimburse the Association for the cost thereof. Such cost shall be a Limited Assessment against the owner and shall create a lien enforceable in the same manner as other Assessments set forth in Article V of this Declaration. The Owner of the offending Residential Property shall be personally liable, and such Owner's Residential Property may be subject to a mechanic's lien for all costs and expenses incurred by the Association in taking such corrective acts, plus all costs incurred in collecting the amounts due. Each Owner shall pay all amounts due for such work within ten (10) days after receipt of written demand thereof, or the amounts may, at the option of the Board, be added to the amounts payable by such Owner as Regular Assessments. Each owner shall have the remedial rights set for herein if the Association fails to exercise its rights within a reasonable time following written notice by such Owner Garden Homes: No Residential Property or residential exterior surface shall be permitted to fall into disrepair, and every Improvement on said Residential Property shall at all times be kept in good condition and repair. Except for specific maintenance provided by the Association through Limited Assessments as specified in Article ; maintenance and repair of all residential exterior surfaces and Improvements (including Private Gardens and special privacy fencing or landscaping as provided in Article ) in the Garden Homes shall be the exclusive obligation of the Owner. Landscaping maintenance (with the exception of private gardens approved by the Architectural Committee, including but not limited to flowers, trees, and vegetables which are installed by the Owner of a Residential Property; hereinafter referred to as Private Gardens ); and private street maintenance (where two or more properties share a private street) shall be provided by the Association through Limited Assessments specified in Article Maintenance and expense of all residential exterior surfaces (including Private Gardens and special privacy fencing or landscaping as provided in Article ) shall be the exclusive obligation of each individual Owner. In the event that any Owner shall permit any Improvement which is the responsibility of the Owner to maintain, to fall into disrepair so as to create a dangerous, unsafe, unsightly or unattractive condition, or so as to damage Residential Property or facilities on an adjoining Residential Property or the Common Area, the Board, upon fifteen (15) days prior written notice to the Owner of such Residential Property, shall have the right to correct such condition, and to enter upon such Owner's Residential Property for the purpose of doing so, and such Owner shall promptly reimburse the Association for the cost thereof. Such cost shall be a Limited Assessment against the owner and shall create a lien enforceable in the same manner as other Assessments set forth in Article V of this Declaration. The Owner of the offending Residential Property shall be personally liable, and such Owner's Residential Property may be subject to a mechanic's lien for all costs and expenses incurred by the Association in taking such corrective acts, plus all costs incurred in collecting the amounts due. Each Owner shall pay all amounts due for such work within ten (10) days after receipt of written demand therefor, or the amounts may, at the option of the Board, be added to the amounts payable by such Owner as Regular Assessments. Each Owner 11

12 shall have the remedial rights set forth herein if the Association fails to exercise its rights within a reasonable time following written notice by such Owner Fire or Other Casualty Loss. In case of damage by fire, earthquake, or other casualty to a Residential Property, the Owner of said Residential Property, at its own expense, shall repair the damage with reasonable dispatch, giving due consideration to delays caused by strikes, adjustment of insurance and other causes beyond the Owner s control; provided, however, that in all events the Owner shall commence reasonable clean-up of debris and destruction within thirty (30) days from date the damage occurred and Owner shall commence repairs within one hundred twenty (120) days from receipt of the insurance settlement. In the event the Owner of said Residential Property has no insurance, Owner shall be fully liable for the clean-up of debris and destruction within thirty (30) days and repairs within one hundred twenty (120) days from date the Residential Property is damaged or destroyed. The rules for reconstruction shall be the same rules and restrictions, as to design, appearance and size that were in force and complied with at the time of original construction. All clean-up and repair schedules shall be submitted by Owner, in writing, to the Architectural Committee for approval. In the event the clean-up and repair activities do not take place as provided herein, all remedial action shall be pursued by the Board in accordance with all other provisions provided for in this Declaration. 2.8 Drainage. There shall be no interference with the established drainage pattern over any portion of the Property, unless an adequate alternative provision is made for proper drainage and is first approved in writing by the Architectural Committee, and all required governmental approvals are obtained. For the purposes hereof, "established drainage" is defined as the system of drainage, whether natural or otherwise, which exists at the time the overall grading of any portion of the Property is completed, or that drainage which is shown on any plans approved by the Architectural Committee, which may include drainage from Common Area over any Residential Property in the Property. Owners and properties shall be subject to such reasonable watering rules and regulations as the Board may adopt from time to time. 2.9 Grading. The Owner of any Residential Property on which grading or other work has been performed pursuant to a grading plan approved by the Architectural Committee, shall maintain and repair all graded surfaces and erosion prevention devices, retaining walls, drainage structures, means or devices which are not the responsibility of the Association, or other public agency, and plantings and ground cover installed or completed thereon. Such requirements shall be subject to Regular, Special, and Limited Assessments provided in Article V herein, as may be applicable Water Supply Systems. No separate or individual water supply system, regardless of the proposed use of the water to be delivered by such system, shall be permitted on any Residential Property. Each Owner shall connect the appropriate facilities on such Owner's Residential Property to the Twin Falls City Water System and pay all charges assessed therefore No Hazardous Activities. No activities shall be conducted on the Property, and no Improvements shall be constructed on the Property which are or might be unsafe or hazardous to any Person, the Property or Residential Property. 12

13 2.12 Unsightly Articles. No unsightly articles shall be permitted to remain on any Residential Property so as to be visible from any other portion of the Property. Without limiting the generality of the foregoing, refuse, garbage and trash shall be kept at all times in such containers and in areas approved by the Architectural Committee. No clothing or fabrics shall be hung, dried or aired in such a way as to be visible to other Residential Property, and no equipment, heat pumps, compressors, containers, lumber, firewood, grass, shrub or tree clippings, plant waste, metals, bulk material, scrap, refuse or trash shall be kept, stored or allowed to accumulate on any Residential Property except within an enclosed structure or as appropriately screened from view. No vacant residential dwelling or other structures shall be used for the storage of building materials (except in the ordinary course of construction of such dwelling or structures) No Temporary Structures. No house trailer, mobile home, tent, shack or other temporary building, improvement or structure shall be placed upon any Residential Property or any portion of the Property, except temporarily as may be required by construction activity undertaken on the Property or as otherwise approved by the Architectural Committee No Unscreened Boats, Campers and Other Vehicles. No boats, trailers, campers, commercial vehicles in excess of three quarter (3/4) ton size, all-terrain vehicles, motorcycles, recreational vehicles, bicycles, dilapidated or unrepaired and unsightly vehicles or similar equipment shall be placed upon any Residential Property or any portion of the Property (including, without limitation, streets, parking areas and driveways) unless the same are enclosed by a structure concealing them from view in a manner approved by the Architectural Committee. To the extent possible, garage doors shall remain closed at all times Sewage Disposal Systems. No individual sewage disposal system shall be used on the Property. Each Owner shall connect the appropriate facilities on such Owner's Residential Property to the Twin Falls City Sewer System and pay all charges assessed therefore No Mining or Drilling. No portion of the Property shall be used for the purpose of mining, quarrying, drilling, boring or exploring for or removing water, oil, gas or other hydrocarbons, minerals, rocks, stones, sand, gravel or earth. This paragraph 2.16 shall not prohibit exploratory drilling or coring which is necessary to construct a dwelling or Improvements Energy Devices, Outside. No energy production devices, including but not limited to generators of any kind and solar energy devices, shall be constructed or maintained on any portion of the Property without the written approval of the Architectural Committee, except for heat pumps shown in the plans approved by the Architectural Committee. This paragraph shall not apply to passive solar energy system incorporated into the approved design of a residential structure Vehicles. The use of all vehicles, including but not limited to trucks, automobiles, bicycles, motorcycles, snowmobiles, aircraft and boats, shall be subject to all Association Rules, which may prohibit or limit the use thereof within the Property (provided that no rule shall be adopted prohibiting the use of automobiles or other non-commercial vehicles ordinarily used for personal transportation from using the streets within the Property for ingress and egress). No on-street parking shall be permitted. No parking bays shall be permitted in any side, front or backyard. Vehicles parked on a driveway shall not extend into any sidewalk or pedestrian walkways. No motorized vehicle or device shall 13

14 be permitted on any Common Area unless such vehicle is engaged in an emergency procedure or Common Area maintenance activities authorized by the Association Animals/Pets. No animals, birds, insects, pigeons, poultry, pigs or livestock shall be kept on the Property, except up to two (2) domesticated dogs, up to two (2) domesticated cats, and other household pets which are kept within the dwelling and which do not unreasonably bother or constitute a nuisance to others. Without limiting the generality of the foregoing, consistent and/or chronic barking by dogs shall be considered a nuisance. Each dog shall be kept on a leash, curbed, and otherwise controlled at all times when such animal is off the premises of its owner. Such Owner shall clean up any animal defecation immediately from the Common Area or public right-of-way. Failure to do so may result, at the Board's discretion in a Limited Assessment levied against such animal owner. The construction and location of dog runs or other pet enclosures is forbidden in the Manor Homes unless specific approval is granted by the Architectural Committee and the design and construction thereof are approved by the Architectural Committee. All approved dog runs or other pet enclosures should be kept clean, maintained in a sanitary condition and free of animal defecation and odor, which may constitute a nuisance to others or interfere with landscaping maintenance provided by the Association. Pet enclosures in the Village Homes and Garden Homes shall be subject to Architectural Committee approval, shall be appropriately screened, and maintained in a sanitary condition. Dog runs or other pet enclosures shall be placed not less than eight (8) feet from the side and twelve (12) feet from the rear Residential Property line, shall not be placed in any front yard of a Residential Property and shall be screened from view so as not to be visible from the Common Area or an adjacent Residential Property Landscaping and Building Construction Landscaping. All landscaping shall be in conformance with a landscape design and plan approved by the Architectural Committee. All landscaping shall be commenced within thirty (30) days following the completion of any dwelling on any Residential Property. The Architectural Committee may impose a default penalty upon any Residential Property Owner if construction does not commence or is not completed as provided herein. Owner shall promptly pay to the Association the amount of such default penalty. The Architectural Committee may adopt rules regulating landscaping permitted and required. In the event that any Owner shall fail to install and maintain landscaping in conformance with such rules or shall allow such Owner's landscaping to deteriorate to a dangerous, unsafe, unsightly or unattractive condition, the Board, upon fifteen (15) days prior written notice to such Owner, shall have the right to correct such condition and to enter upon such Owner's Residential Property for the purpose of doing so, and such Owner shall promptly reimburse the Association for the cost thereof. Such cost shall be a Limited Assessment and shall create a lien enforceable in the same manner as other Assessments as set forth in Article V Building Construction. Construction of a residential dwelling and all other Improvements on any Residential Property shall be diligently pursued and completed in a timely manner. 14

15 2.21 Conveyances to and from Municipalities. Providing a majority vote or written consent of at least sixty-seven percent (67%) of its Members, the Association shall have the power to convey any Common Area to the City of Twin Falls, the County of Twin Falls, the State of Idaho, the United States of America or any political subdivision thereof, and shall also have the power to receive a conveyance of any Residential Property interest from the above-referenced entities or any other individual or entity and to hold such Residential Property interest as Common Area. 15

16 ARTICLE III BRECKENRIDGE HOMEOWNERS ASSOCIATION 3.1 Organization of Breckenridge Homeowners Association. The Breckenridge Homeowners Association, Inc. (the "Association") shall be initially organized as an Idaho Nonprofit Corporation under the provisions of the Idaho Code relating to general Nonprofit Corporations and shall be charged with the duties and invested with the powers prescribed by law and set forth in the Articles, Bylaws and this Declaration. Neither the Articles nor the Bylaws shall be amended or otherwise changed or interpreted so as to be inconsistent with the Declaration. 3.2 Membership: Qualifications. Each Owner of a Residential Property shall be a Member of the Association. No Owner shall hold more than one membership in the Association even though such Owner may own, or own an interest in more than one Residential Property. Ownership of a Residential Property or interest in it shall be the sole qualification for membership in the Association. Each Owner shall remain a Member of the Association until his or her ownership or ownership interest in all Residential Property within the Property ceases, at which time his or her membership in the Association shall automatically cease. Persons or entities who hold an interest in a Residential Property merely as security for performance of an obligation are not to be regarded as Members Members Rights and Duties. Each Member shall have the rights, duties and obligations set forth in these Bylaws, the Articles of Incorporation (the Articles ), the Declaration and the Association rules and all their amendments Transfer of Membership. The membership in the Association of each person or entity who owns, or owns an interest in, one or more Residential Property shall be appurtenant to each such Residential Property, and shall not be assigned, transferred, pledged, hypothecated, conveyed or alienated in any way except on a transfer of ownership of each such Residential Property or interest therein and then only to the transferee. Any attempt to make a transfer prohibited herein shall be void. Any transfer of title of a Residential Property or Interest therein shall operate automatically to transfer the appurtenant membership rights in the Association to the new Owner. 3.3 Voting Number of Votes. Voting in the Association shall be carried out by Members who may cast the votes attributable to the Residential Property of which they are Owners. The number of votes any Member may cast on any issue is determined by the number of Residential Property which the Member owns. When more than one person holds an interest in any Residential Property, all such persons shall be Members but nevertheless shall share the vote attributable to the Residential Property. The Association shall have one (1)) class of voting membership: Member: Members are all Owners. Each Member shall be entitled to one (1) vote for each Residential Property in which such Member owns an interest. If a Residential Property is owned by more than one Member, the vote for such Residential Property shall be exercised as the Owners of said Residential Property 16

17 shall agree; provided, that no more than one (1) vote shall be cast with respect to any single Residential Property Joint Owner Votes. The voting rights for each Residential Property may not be cast on a fractional basis. If the joint Owners of a Residential Property are unable to agree among themselves as to how their vote(s) shall be cast, they shall forfeit their right to vote on the matter in question. If any Owner exercises the voting rights of a particular Residential Property, it will be conclusively presumed for all purposes that he or she was acting with the authority and consent of all other Owners of the same Residential Property. If more than one (1) person or entity exercises the voting rights for a particular Residential Property, their votes shall not be counted and shall be deemed void Secret Ballot: Cumulative Voting: In any election involving the election or removal of more than one member of the Board, voting shall be by cumulative voting. All votes for election to or removal from the Board shall be by secret written ballot. Each Member shall be entitled to vote, in person or by proxy, as many votes as such Member is entitled to exercise as provided in the Declaration. As to removal, unless the entire Board is removed by a vote of Association Members, an individual member of the Board shall not be removed unless the number of votes in favor of removal satisfies the requirements of the Act. 3.4 Board of Directors and Officers. The affairs of the Association shall be conducted and managed by a Board of Directors ("Board") and such officers as the Board may elect or appoint, in accordance with the Articles and Bylaws, as the same may be amended from time to time. The Board of the Association shall be elected in accordance with the provisions set forth in the Association Bylaws. 3.5 Power and Duties of the Association Powers. The Association shall have the powers of a corporation organized under the general corporation laws of the State of Idaho subject only to such limitations upon the exercise of such powers as are expressly set forth in the Articles, the Bylaws, and this Declaration. The Association shall have the power to do any and all lawful things which may be authorized, required or permitted to be done by the Association under Idaho law and under this Declaration, and the Articles and Bylaws, and to do and perform any and all acts which may be necessary to, proper for, or incidental to the proper management and operation of the Common Area and the Association's other assets and affairs and the performance of the other responsibilities herein assigned Assessments. The power to levy Assessments on any Owner or any portion of the Property and to force payment of such Assessments, all in accordance with the provisions of this Declaration Right of Enforcement. The power and authority from time to time in its own name, on its own behalf, or on behalf of any Owner who consents thereto, to commence and maintain actions and suits to restrain and enjoin any breach or threatened breach of this Declaration of the Articles or the Bylaws, including the Association Rules adopted pursuant to this Declaration, and to enforce by injunction or otherwise, all provisions hereof Delegation of Powers. The authority to delegate its power to committees, officers, employees, or to any person, firm or corporation to act as manager, and to contract for the maintenance, repair, replacement and operation of the Common Area. Neither the Association nor the members of its 17

18 Board shall be liable for any omission or improper exercise by the manager of any such duty or power so delegated Association Rules. The power to adopt, amend and repeal by majority vote of the Board such rules and regulations as the Association deems reasonable. The Association may govern the use of the Common Areas and recreational facilities by the Owners, their families, invitees, licensees, lessees or contract purchasers; provided, however, that any Association Rules shall apply equally to all Owners and shall not be inconsistent with this Declaration, the Articles or Bylaws. Notwithstanding the foregoing, specific rules with application limited to the individual areas of the Manor Homes, Village Homes and Garden Homes may be adopted and enforced so long as such rules apply equally to all Owners and properties within the specific Tract. A copy of the Association Rules as they may from time to time be adopted, amended or repealed, shall be mailed or otherwise delivered to each Owner. Upon such mailing or delivery, the Association Rules shall have the same force and effect as if they were set forth in and were a part of this Declaration. In the event of any conflict between such Association Rules and any other provisions of this Declaration, or the Articles or Bylaws, the provisions of the Association Rules shall be deemed to be superseded by the provisions of this Declaration, the Articles or the Bylaws to the extent of any such inconsistency Emergency Powers. The power, exercised by the Association or by any person authorized by it, to enter upon any Residential Property (but not inside any building constructed thereon) in the event of any emergency involving illness or potential danger to life or Residential Property or when necessary in connection with any maintenance or construction for which the Association is responsible. Such entry shall be made with as little inconvenience to the Owner as practicable Licenses, Easements and Rights-of-Way. The power to grant and convey to any third party such licenses, easements and rights-of-way in, on or under the Common Area as may be necessary or appropriate for the orderly maintenance, preservation and enjoyment of the Common Area, and for the preservation of the health, safety, convenience and the welfare of the Owners, for the purpose of constructing, erecting, operating or maintaining: Underground lines, cables, wires, conduits or other devices for the transmission of electricity or electronic signals for lighting, heating, power, telephone, television or other purposes, and the above ground lighting stanchions, meters, and other facilities associated with the provisions of lighting and services Public sewers, storm drains, water drains and pipes, water supply systems, sprinkling systems, heating and gas lines or pipes, and any similar public or quasipublic improvements or facilities Mailboxes and sidewalk abutments around such mailboxes or any service facility, berm, fencing and landscaping abutting Common Areas, public and private streets or land conveyed for any public or quasi-public purpose including, but not limited to, common areas. 18

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