LAKEWOOD TOWNHOMES ASSOCIATION
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- Laureen Matthews
- 5 years ago
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1 AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS of LAKEWOOD TOWNHOMES ASSOCIATION This Amended and Restated Declaration, hereinafter called the Declaration, is made effective on the date of the recording hereof in the real property records of El Paso County, Colorado. WITNESSETH: WHEREAS, Valley Land Sales Co., as Declarant, recorded Declarations of Covenants, Conditions and Restrictions in Book 2475 beginning at Page 49, Book 2734 beginning at Page 955, Book 2765 beginning at Page 711, and Book 3797 beginning at Page 552 of the records of the Clerk and Recorder of El Paso County, Colorado, together with any other prior covenants, including without limitation the Declaration of Covenants, Conditions and Restrictions applicable to Satellite Townhomes Subdivision dated November 24, 1970 and the Amended and Restated Declaration of Covenants, Conditions and Restrictions of Satellite Townhomes recorded on May 14, 1992 in Book 5977 beginning at Page 743 of said records, hereinafter called the Prior Covenants. WHEREAS, the Lakewood Townhomes Association, the Owners and First Mortgagees have attached their signatures to this Amended and Restated Declaration in order to amend the Prior Covenants and impose this Declaration upon the real property described herein. WHEREAS, the real property subject to this Declaration, situated in El Paso County, Colorado (hereinafter the Property ) is described as follows: ALL OF SATELLITE TOWNHOMES SUBDIVISION IN ACCORDANCE WITH THE PLAT BOOK P-2 AT PAGE 42; ALL OF SATELLITE TOWNHOMES SUBDIVISION FILING NO. 1, IN ACCORDANCE WITH THE PLAT THEREOF RECORDED IN PLAT BOOK S-2 AT PAGE 59; ALL OF SATELLITE TOWNHOMES SUBDIVISION FILING NO. 2, IN ACCORDANCE WITH THE PLAT THEREOF, RECORDED IN PLAT BOOK W-2 AT PAGE 77, AND ALL OF ANY SUBSEQUENT PLATS AS PLATTED AND RECORDED FROM WITHIN SAID SATELLITE TOWNHOMES SUBDIVISION NO. 2, INCLUDING THE REPLAT OF LOTS IN PLAT BOOK B-3 AT PAGE 48; THE REPLAT OF LOTS IN CONDOMINIUM BOOK B2 AT PAGE 4, AND FILING NO. 3 IN PLAT BOOK A-3 AT PAGE 66; SAID REAL PROPERTY WAS PREVIOUSLY KNOWN AS LOTS 1 THROUGH 13, INCLUSIVE, BLOCK 7, VALLEY HI SUBDIVISION, FILING NO. THREE, AS RECORDED IN PLAT BOOK C-2 AT PAGE 39 UNDER RECEPTION NUMBER OF THE RECORDS OF THE CLERK AND RECORDER, EL PASO COUNTY, COLORADO. 1
2 WHEREAS, this Declaration is intended to accomplish amendment in the entirety of each and every previous provision of the Prior Covenants but to relate back to their respective recording or other dates. NOW, THEREFORE, the Prior Covenants are hereby amended, entirely superseded, and restated to be this Declaration and it is hereby declared that all of the Property described above shall be held, sold and conveyed subject to the following easements, restrictions, covenants and conditions, all of which are for the purpose of enhancing and protecting the value, desirability and attractiveness of the real property hereinabove described. These easements, covenants, restrictions and conditions shall run with the real property and shall be binding on all the parties having or acquiring any right, title or interest in the above described property or any part thereof, and shall inure to the benefit of each Owner thereof. ARTICLE 1. DEFINITIONS Section 1.1 Association shall mean and refer to Lakewood Townhomes Association, its successors and assigns. The Association was formerly known as Satellite Townhome Association. The Association is the corporate entity, comprised of those Owners of the herein defined Lots and Townhomes, and managed through an elected Board of Directors. Section 1.2 Board shall mean the Board of Directors of the Association. The Board shall exercise all rights, powers and duties of the Association unless otherwise expressly reserved to the Owners. Section 1.3 Property shall mean and refer to that certain real property hereinbefore described, and such additions thereto as may hereafter be brought within the jurisdiction of the Association. The Property will be known as Lakewood Townhomes. Section 1.4 Common Area shall mean all real property owned by the Association for the common use and enjoyment of the Owners. The Common Area to be owned by the Association at the time of the recording hereof is described as all of the Property except and excluding any real property platted and recorded as Lots under any plat which has not been revoked or replatted but is applicable and effective upon the recording hereof. All prior plats of the property, to the extent not revoked or replatted previous to the recording hereof, are hereby ratified, approved and confirmed; similarly, all prior dedications, conveyances or transfers of the Common Area to the Association are hereby ratified, approved and confirmed. Section 1.5 Lot shall mean and refer to any plot of land shown upon any presently recorded, applicable and effective subdivision map of the Property with the exception of the Common Area. Any conflict between the recorded lot and the actual building location will be resolved in favor of the existing building location as originally constructed without additions. 2
3 Section 1.6.a First Mortgage shall mean a mortgage, deed of trust or comparable security instrument encumbering a Lot recorded in the real property records of El Paso County, Colorado, and having priority of record over all other recorded encumbrances and liens thereon, except those governmental liens made superior by statute, such as general ad valorem tax liens and special assessments. Section 1.6.b First Mortgagee means a mortgagee whose encumbrance and recorded lien is the First Mortgage. Section 1.7.a Owner shall mean and refer to the record owner, whether one or more persons or entities, of a fee simple title to any Lot which is a part of the Property, including contract sellers, but excluding those having such interest merely as security for the performance of an obligation. Section 1.7.b Owner in good standing is an Owner who has not been suspended in accordance with Article 2 Paragraph (d) hereof and has all the rights and entitlements defined in this Declaration. Section 1.8 Declaration shall mean and refer to this Amended and Restated Declaration of Covenants, Conditions and Restrictions Section 1.9 Rules shall mean the written rules adopted by the Board including those described in section 7.11 hereof. Section 1.10 Townhome shall mean the residential dwelling improvement now or hereafter constructed and located upon a Lot. Section 1.11 Patio shall mean the ground level paved slab adjacent to a Townhome and adapted particularly to outdoor living, but it shall not include any decks or landscaped areas. Section 1.12 Deck shall mean any above ground structure attached to the Townhome and adapted particularly to outdoor living. The deck shall include any construction materials used, attachments to the building, supports, railings, flooring, and any permanent or temporary deck covering that may exist. Section 1.13 Windows shall include, but are not limited to any glass, plastics, or other semi-transparent materials, all of the framing, weather stripping, tracks, and mechanisms. Section 1.14 Doors shall include, but are not limited to any entry doors, sliding doors, garage doors; wood, steel, or other materials; all of the framing, weather stripping, windows, tracks, hinges and mechanisms. 3
4 Section 1.15 Additional Definitions will be provided as necessary in the Corporate By-Laws or adopted by the Board of Directors in the Rules or Policies, as allowed in this Declaration. ARTICLE 2. PROPERTY RIGHTS Section 2.1 Owners Easements of Enjoyment. Every Owner in good standing shall have a right and easement of enjoyment in and to the Common Area and such easement shall be appurtenant to and shall pass with the title of each assessed Lot, subject to the following provisions: (a) The right of the Association to adopt and publish reasonable Rules regarding the use of the Property, Common Area and Townhomes, including without limitation, prohibitions of noise, nuisance and restriction upon the number of guests of Owners. (b) The right of the Association to charge reasonable fees for the use of Common Area or to participate in community events. (c) The right of the Association, in accordance with its Articles of Incorporation and By-Laws, to borrow money for the purpose of improving the Common Areas and in aid thereof to mortgage or grant other security interests in the Common Area; provided, however, that the rights of any mortgagee shall be subject to rights of the Owners while any mortgage or note and deed of trust is current and not in default, and further provided that no funds may be borrowed nor shall any mortgage or deed of trust be given unless two-thirds (2/3) of the Owners and not less than two-thirds (2/3) of the First Mortgagees of Lots within the Property (based upon one vote for each first mortgage) agree to such action and an instrument reflecting such agreement is recorded with the Clerk and Recorder of El Paso County, State of Colorado. (d) The right of the Association to suspend the voting rights of an Owner for any period during which any dues assessment against the Lot remains delinquent as described in Section 3.8 hereof, and for any infraction of its published Rules continuing beyond the notice to correct deadline. (e) The right of the Association to dedicate, sell or transfer all or any part of the Common Area, to any public agency, authority or utility for such purposes and subject to such conditions as may be agreed to by the Owners and the person holding mortgages or deeds of trust on any portion of the subject property. No such dedication or transfer shall be effective unless two-thirds (2/3) of the Owners, and not less than two-thirds (2/3) of the First Mortgagees of the Lots within the Property (based upon one vote for each first mortgage) agree to such action and an instrument reflecting such agreement is recorded with the Clerk and Recorder of El Paso County, State of Colorado. (f) The right of the Association by Rules to assign, regulate and restrict use of the Common Area for vehicular use, traffic and parking as provided in Section 2.4 and Section 7.10 herein. 4
5 Section 2.2 Delegation of Use. Any Owner in good standing may delegate in accordance with By-Laws, his right of enjoyment to the Common Area and facilities to the members of his family, his tenants, or contract purchasers who reside on the Property, subject to the reasonable Rules of the Association. Section 2.3 Title to the Common Area. The Common Area shall remain undivided, and shall at all times be owned by the Association or its successors, it being agreed that this restriction is necessary in order to preserve the rights of the Owners with respect to the operation and management of the Common Area. Section 2.4 Vehicular Garaging. Ownership of each Lot shall entitle the Owner or Owners thereof to the ownership of a garage covering two (2) vehicles, which structure shall be a part of the Lot, together with the right of vehicular and pedestrian traffic of ingress and egress across the Common Area from each Lot to a public way. The foregoing rights shall be subject to the provisions of Section 7.10 herein. Prior to any liquidation or dissolution of the Association or transfer or dedication of the Common Area, the Association shall convey to the Owner of each Lot a right-of-way and easement across the Common Area from each Lot to a public way, such rights-ofway and easement being for the use and benefit of the Lot Owner and his designees according to Section 2.2 hereof. ARTICLE 3. COVENANTS FOR MAINTENANCE ASSESSMENTS Section 3.1 Creation of the Lien and Personal Obligation of Assessments. Each Owner of any Lot by acceptance of deed therefor, whether or not it shall be so expressed in any deed or other conveyance, is deemed to covenant and agree to pay to the Association: (1) annual assessment or charges, and (2) special assessments to be fixed, established, and collected from time to time as hereinafter provided. The annual and special assessments, together with interest thereon, reasonable attorneys fees, and costs of collection thereof, as hereinafter provided, shall be a charge on the land and shall be a continuing lien upon the Lot against which each such assessment is made. Each such assessment together with such interest, costs, and reasonable attorneys' fees shall also be the personal obligation of the person who was the Owner of such Lot at the time when the assessment fell due. The personal obligation shall not pass to his successors in title unless expressly assumed by them. Section 3.2 Purpose of Assessments. The assessments levied by the Association shall be used exclusively for the operations, improvement and maintenance of the Property, including services, and facilities devoted to this purpose and related to the use and enjoyment of the Common Area, and of the Townhomes situated upon the Property. They shall include, but are not limited to, funds for the actual cost to the Association of all taxes, insurance, replacement, repair, and maintenance of the Common Area including but not limited to mowing grass, caring for the grounds, sprinkler system, mail boxes, and landscaping. They shall also include funds for the actual cost to the Association for such maintenance of the exteriors of the Townhomes 5
6 located upon the Lots as provided for in Section 6.1 herein; for common insurance on the Townhomes located on the Lots as provided for in Section 10.1 herein; for garbage pickup from the Lots; and for such other charges required by this Declaration or as may be authorized by the Board of Directors or Owners by majority vote of a Quorum. The Board shall establish a reserve fund for the maintenance of the Townhomes and the Common Area as required by this Declaration and the Board shall fund said reserve fund from a portion of the annual assessments which are payable monthly. Section 3.3 Basis of Annual Assessment. The annual assessment may be adjusted by a vote of the Owners for the next succeeding year and at the end of such year, for each succeeding year thereafter, provided that any such change shall have the assent of two-thirds (2/3) of the vote of Owners who are voting in person or by proxy, at the annual meeting, written notice of which shall be sent to all Owners not less than ten (10) nor more than fifty (50) days in advance of the meeting setting forth the purpose of the meeting. The limitations hereof shall not apply to any change in the maximum and basis of the assessments undertaken as an incident to a merger or consolidation in which the Association is authorized to participate under its Articles of Incorporation. Section 3.4 Special Assessments for Capital Improvements. In addition to the annual assessments, authorized above, the Association may levy in any assessment year a special assessment applicable to that year only, for the purpose of defraying, in whole or in part, the cost of any construction or reconstruction, unexpected repair or replacement of a described capital improvement upon the Common Area, including the necessary fixtures and personal property, related thereto, or other emergency declared by the Board, provided that any such assessment shall have the assent of two-thirds (2/3) of the votes of Owners who are voting in person or by proxy at a meeting duly called for this purpose, written notice of which shall be sent to all Owners not less than ten (10) nor more than fifty (50) days in advance of the meeting setting forth the purpose of the meeting. Section 3.5 Uniform Rate of Assessment. Both annual and special assessment must be fixed at a uniform rate for all Lots and may be collected on a monthly basis with each Owner paying an amount equal to that paid by each of the other Owners. Section 3.6 Quorum for Any Action Authorized Under Sections 3.3 and 3.4. At the first meeting called, as provided in Sections 3.3 and 3.4 hereof, the presence at the meeting of Owners or of proxies entitled to cast a majority of all the votes of the Owners shall constitute a quorum. If the required quorum is not forthcoming at any meeting, another meeting may be called, subject to the notice requirement set forth in Sections 3.3 and 3.4. No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting. Section 3.7 Commencement of Annual Assessments: The annual assessment provided for herein shall commence as to all Lots on the first day of the second month following the annual meeting. Written notice of the approved annual assessment against each Lot shall be sent by the Board to every Owner subject thereto at least thirty (30) 6
7 days in advance of the annual assessment due date. The due dates shall be established by the Board and, unless otherwise provided, the Association shall collect each month from the Owner of each Lot 1/12th of the annual assessment for such Lot. The failure to provide timely notice shall not invalidate any assessment. The Association shall upon demand at any time furnish a certificate in writing, signed by an officer or agent of the Association setting forth whether the assessments on a specified Lot have been paid. A reasonable charge may be made by the Association for the issuance of these certificates. Such certificates shall be conclusive evidence of the balance of any assessment therein stated to have been paid or due. Section 3.8 Effect of Nonpayment of Assessments and Remedies. All monthly assessments are due on the first of each month and are considered delinquent or past due if not received before the last day of the month due. The Board may impose late charges for delinquent assessments which cover the additional cost of bookkeeping, notices, and administrative time. The delinquent balance shall bear interest from the date of delinquency at the rate set by the Association s Rules. The Association may bring an action at law against the Owner personally obligated to pay the same, and take appropriate action against the Lot. All collection costs, including but not limited to late charges, interest, recorded liens, and reasonable attorney fees are added to the Owner s account in addition to the unpaid assessments. Each Owner, by his acceptance of a deed to a Lot, here expressly vests in the Association, or its agents, the right and power to bring all actions against such Owner personally for the collection of such charges as a debt and to enforce the aforesaid lien by all methods available for the enforcement of such liens, including foreclosure by an action brought in the name of the Association in a like manner as a mortgage or deed of trust lien on real property, and such Owner hereby expressly grants to the Association a power of sale in connection with said lien. The lien provided for in this section shall be in favor of the Association and shall be for the benefit of all other Lot Owners. The Association, acting on behalf of the Lot Owners, shall have the power to bid on any interest foreclosed at foreclosure sale and to acquire and hold, lease, mortgage and convey the same. No Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the Common Area or abandonment of his Lot or assertion of any claim against the Association. Section 3.9 Subordination of the Lien to First Mortgages. The lien of the Assessments provided for herein shall be subordinate to the lien of any First Mortgage. The Mortgage Holder understands the importance of maintaining the value and insurability of the Townhome which has been used as collateral for their mortgage lien. Therefore, in consideration for the subordination to a First Mortgage, the First Mortgage Holder will assist the Association, to the extent of their ability as allowed by current law or regulations, with the collection of delinquent balances owed by their mortgagor. This assistance should include communication with the mortgagor about the consequence of non-payment and may also include the collection and payment to the Association of any unpaid monthly installments of the annual assessment against said Owner, Townhome and Lot. The Owner herein, in advance, gives consent and permission to the First Mortgage Holder and the Association to communicate with each other, as necessary, 7
8 for the collection and payment to the Association of any unpaid assessments. The Owner herein, in advance, gives consent and permission to the First Mortgage Holder to assist in the collection of any unpaid balances of assessments due to the Association. The Association may continue to pursue any and all other remedies available them at law. Sale or transfer of any Lot shall not affect the assessment lien. However, the sale or transfer of any Lot pursuant to First Mortgage foreclosure or any proceeding in lieu thereof shall extinguish the lien of such assessments as to payments which become due prior to such sale or transfer, except as provided for by Colorado Statutes concerning First Mortgagee responsibility to Common Interest Community assessments. No sale or transfer shall relieve such Lot from liability for any assessments thereafter becoming due or from the lien thereof. Section 3.10 Exempt Property. The following property subject to this Declaration shall be exempt from the assessments created herein: (a) all properties dedicated to and accepted by local public authority; and (b) the Common Area. Section 3.11 Notice to Mortgagees. Upon written request of a First Mortgagee, the Association shall report to that mortgagee of a Lot, any unpaid assessment or other defaults under the terms of this Declaration which are not cured by said mortgagee s mortgagor within thirty (30) days; provided, however, that a First Mortgagee shall have furnished to the Association notice of its encumbrance. ARTICLE 4. PARTY WALLS Section 4.1 General Rules of Law to Apply. Each wall which is built as part of the original construction of the Townhomes upon the property and placed on the dividing line between the Lots shall constitute a party wall and 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 4.2 Sharing of Repair and Maintenance. The cost of reasonable repair and maintenance of a party wall shall be shared by the Owners who make use of the wall in proportion to such use. Section 4.3 Weatherproofing. Notwithstanding any other provision of this Article, an Owner who by his negligent or willful act causes the party wall to be exposed to the elements shall bear the whole cost of furnishing the necessary protection against such elements. Section 4.4 Right to Contribute Runs with Land. The right of any Owner to contribution from any other Owner under this Article shall be appurtenant to the land and shall pass to such Owner s successors in title. 8
9 Section 4.5 Arbitration. In the event of any dispute arising concerning a party wall, or under the provisions of this Article, each party shall choose one additional arbitrator, and such arbitrators shall choose one additional arbitrator, and the decision shall be by a majority of all the arbitrators. ARTICLE 5. ARCHITECTURAL CONTROL Section 5.1 Architectural Control. No building, fence, wall or other structure shall be commenced, erected or maintained upon any Lot or the Patio used in connection with any Lot, or any other part of the property, nor shall any exterior addition to or change or alteration therein be made until the plans and specifications showing the nature, kind, shape, heights, material, and location of the same shall have been submitted to and approved in writing as to harmony of external design and location in relation to surrounding structures and topography by the Board or by a committee appointed by the Board. In the event the Board fails to approve or disapprove such design and location within sixty (60) days after said plans and specification have been submitted to it and receipted therefor in writing, approval will not be required, and this Article will be deemed to have been fully complied with. Owners must complete any approved changes within one year of the date of the approval, unless an extension of time is approved by the Board. Section 5.2 Board Interpretation. This Article shall be interpreted in accordance with its general purpose and intent as herein expressed. It is the intent of this Declaration that the Board s decisions shall be final and conclusive except for an arbitrary abuse of its discretion or an excess of its authority. The Board shall resolve all questions of interpretation under this Article and may grant any variances for unusual hardship. ARTICLE 6. EXTERIOR MAINTENANCE Section 6.1 Association Maintenance. In addition to maintenance upon the Common Area, the Association shall provide for such maintenance of the exteriors of Townhomes located upon the Lots as may from time to time be authorized by the Board. Such maintenance shall apply to exterior siding, roof shingles, rolled roofing, flashing, splash pans, brick surface, brick joints, stucco, soffits, fascia, painting, curbs, gutters, and downspouts. The Association may provide for the painting or staining of any Townhome decks, covers, or other additions in order to maintain conformity of color, when approved by the Board. Notwithstanding any provision of this Declaration, the Board may adopt Rules regarding the standards, the responsibility and the allocation of cost to the Owners as to the maintenance of any item related to the Townhomes or Common Area. Common Area maintenance will include: the grass lawns, bushes, shrubs, trees, plants, gravel, rock, asphalt, sidewalks, vehicle entries, curbs, aprons, permanent planters, and concrete flatwork which is located outside of the homeowner s lot line. 9
10 Section 6.2 Owner Responsibility. Each Owner shall be responsible for all maintenance on his Lot except for the Association s responsibility under Section 6.1. In the event that the need for repair is caused through the willful or negligent act of the Owner, his family, or guests, or invitees, or contractors, and if the Association must make the repair, the cost of such maintenance or repairs shall be added to and become a part of the assessment to which such Owner and Lot is subject. If the Owner feels that someone else is to blame, the Owner is responsible for collection from the party at fault. Owner responsibility for the Common Areas will include: temporary planter boxes, flower pots, vines, trellises and homeowner installed gardens, shrubs, and plants within the Board approved planting areas. The Owner is also responsible for cleaning up after pets, guests, their contractors, or paying the cost of repairing any damage caused by their use or abuse of the common area such as broken sprinklers or downspouts and splash blocks. Owner responsibility for exterior maintenance will include: exterior light fixtures, outlets, wiring, water faucets, patios, porches, decks, deck/patio covers, fences, house numbers, doors, screens, locks, garage doors, concrete garage floors, flag poles, vents, chimney caps, skylights, air conditioning, windows, glass surfaces, Plexiglas, and all improvements installed by the previous or present owners since the original construction. The Owner is responsible for all maintenance to their Townhome and Lot, both interior and exterior, which has not been specifically delegated to the Association by this Declaration or otherwise allocated by the Rules adopted by the Owners or the Board. ARTICLE 7. USE RESTRICTIONS Section 7.1 Residential Use. Except for land designated as Common Area, all of the lands contained in the property shall be used for residential purposes only. All buildings or structures erected upon the property shall be of new construction and no buildings or structures shall be moved from other locations onto the Property, and only single family Townhomes joined together by a Common exterior, roof and foundation, shall be constructed. No structures of a temporary character, trailer, basements, tent, shack, garage, bar or other outbuilding shall be used on any portion of the Property at any time as a residence either temporarily or permanently. Section 7.2 Conveyance. Each Lot shall be conveyed as a separately designated and legally described freehold estate subject to the terms, conditions and provisions hereof. Section 7.3 Animals. No animals, livestock or poultry of any kind shall be raised, bred or kept on any of the Lots, except that dogs, cats or other household pets may be kept, provided that they are not kept, bred or maintained for any commercial purpose and are subject to any Rules imposed by the Board. 10
11 Section 7.4 Signs and Flags. No advertising signs, except one of not more than five square feet for rent or for sale sign per Lot. No billboards, unsightly objects, or nuisances shall be erected, placed or permitted to remain on the Property. Private business activities of any kind shall conform to any applicable City, State or Association regulations conducted in any building or in any portion of said property. The Board may adopt Rules regarding political signs and American or service flags. Section 7.5 Clotheslines and Storage. All clotheslines, equipment, garbage cans, woodpiles, or storage piles shall be kept screened by adequate planting, fencing or in the garage, so as to conceal them from view of neighboring Townhomes and streets. All rubbish, trash, or garbage shall be regularly removed from the property, and shall not be allowed to accumulate thereon. All clotheslines shall be confined to Patio or Deck areas at the back of the Townhomes. Section 7.6 Common Area Use. Except in the individual Patio areas appurtenant to a Townhome, no planting or gardening shall be done, and no fences, hedges or walls shall be erected or maintained upon the Common Area except such as are installed in accordance with the initial construction of the buildings located thereon or as approved by the Board. Except for the right of ingress and egress, the Owners of Lots are hereby prohibited and restricted from using any of the Common Area outside the Lot exterior building lines, except as may be allowed by the Board. It is expressly acknowledged and agreed by all parties concerned that this paragraph is for the mutual benefit of all Owners of Lots in the Lakewood Townhomes and is necessary for the protection of said Owners. Section 7.7 Common Area Maintenance. Any cooperative action necessary or appropriate to the proper maintenance and upkeep of the Common Area, including but not limited to, surfaced areas and walks, shall be taken by the Board or by its duly delegated representative. Maintenance and repairs of any Patio or Deck shall be the sole responsibility of the individual Owner of the Lot appurtenant thereto. Similarly, maintenance, upkeep and repairs of any fences or any improvements, grass, plants or landscaping located within a fenced area, even if that Area is part of the Common Area, shall be the sole responsibility of the individual Owner using such fence, improvement or fenced area. Section 7.8 Utilities and Equipment. All fixtures and equipment installed within or outside of a Townhome, commencing at a point where the utility lines, pipes, wires, conduits or systems are no longer the responsibility of the service provider, shall be maintained and kept in repair by the Owner thereof. The Association is not responsible for any sewer lines, gas lines or electrical lines unless damage is caused by a negligent act of the Association. The Association is responsible for the domestic water lines from the common meter up to the Lot line of the Townhome. An Owner shall not do any act or perform any work which would impair any easement or other legal right regarding the property as set forth herein. An Owner shall not do any act nor allow any condition to exist which will adversely affect the other Townhomes or their Owners. 11
12 Section 7.9 Antennas and Devices. No exterior television or radio antennas or audio or video reception devices of any sort shall be placed or allowed upon the Property including the individual Townhome, unless approved in writing by the Board. Section 7.10 Parking of Vehicles. As specified in Section 2.4 herein, the Owner of each Lot is entitled to a garage covering two automobiles, which structure shall be a part of said Lot, to be used for vehicular parking. No recreational vehicle, boat, house trailer, motor home, camper, trailer, or other vehicle of any kind, excluding automobiles and pickup trucks, in the possession of an Owner, his family, tenant, guest, or invitee shall be parked on any portion of the Common Area for a period in excess of seventytwo (72) consecutive hours. Any unauthorized vehicle that remains parked on any portion of the Common Area for a period greater than seventy-two (72) consecutive hours may be towed away at the Owner s expense at the direction of the Board. The Board may adopt Rules regarding vehicular traffic and parking, as well as ingress and egress across the Common Area. Such Rules may include regulations regarding the parking of emergency or service vehicles. Section 7.11 Board Enforcement. No action shall at any time be taken by the Association or its Board which in any manner would discriminate against any Owner or Owners in favor of the other Owners, provided, however, to the extent the Rules do not address any provision, the Declaration, Articles of Incorporation and Bylaws shall constitute the governance policies of the Association. The Board may adopt and publish reasonable Rules to enforce, implement and interpret this Declaration or any Colorado statute, including without limitation, Rules concerning: (1) collection of unpaid assessments; (2) handling of conflicts of interest involving board members; (3) conduct of meetings, which may refer to applicable provisions of the Colorado Revised Nonprofit Corporation Act or other recognized rules and principles; (4) enforcement of this Declaration and/or Rules, including notice and hearing procedures and the schedule of fines; (5) inspection and copying of association records by unit owners; (6) investment of reserve funds and reserve studies; (7) procedures for the adoption and amendment of Rules including policies and procedures; and (8) procedures for addressing disputes arising between the Association and Owners. Any Rules adopted by the Board may be amended by the Board and may be enforced as if a part of this Declaration. 12
13 ARTICLE 8. EASEMENTS Section 8.1 Encroachment. Each Lot and the Common Area shall be subject to an easement for encroachments created by construction, settling and overhangs, as designated or constructed by the original builder. A valid easement for said encroachments and for the maintenance of same, so long as it stands, shall and does exist. In the event the multi-family structure containing two or more Townhomes is partially or totally destroyed and then rebuilt, the Owners of the Townhomes so affected agree that minor encroachments of parts of the adjacent Townhome units or Common areas due to construction shall be permitted and that a valid easement for said encroachment and the maintenance thereof shall exist. Section 8.2 Service Easements. There is hereby created a blanket easement upon, across, over and under all of the Property for ingress, egress, installation, replacing, repairing and maintaining all utilities, including but not limited to water, sewers, gas, telephones and electricity, and a master television antenna system. By virtue of this easement, it shall be expressly permissible for the providing electrical and/or telephone company to install and maintain the necessary equipment on said property and to affix and maintain electrical and/or telephone wire, circuits and conduits on, above, across, and under the roofs and exterior walls of said Townhomes. An easement is further granted to all police, fire protection, ambulance and all similar persons to enter upon the streets and Common Area in the performance of their duties. Further, an easement is hereby granted to the Association, its officers, agents, employees, and to any management company selected by the Association to enter in or to cross over the Common Area and any Townhome to perform the duties of maintenance and repair of the Townhomes or Common Area provided for herein. Notwithstanding anything to the contrary contained in this paragraph, no sewers, electrical lines, water lines, or other utilities may be installed or relocated on said Property except as initially programmed and approved by the original Declarant, Valley Land Sales Co., or thereafter approved by the Association s Board. Should any utility furnishing a service covered by the general easement herein provided request a specific easement by separate recordable document, the Association shall have the right to grant such easement on said Property without conflicting with the terms hereof. The easements provided for in this Article shall in no way affect any other recorded easement on said Property. Section 8.3 Underground Electric Service. (a) Underground single phase electric service shall be available to residential Townhomes on the Lots, and the metering equipment shall be located on the exterior surface of the wall at a point to be designated by the utility company. The utility company furnishing the service shall have a two (2) foot wide easement along and centered on the underground electric power service conductors installed from the utility company s easement to the designated point of service on the Townhome structure. (b) Easements for the underground service may be crossed by driveways and walkways provided a builder makes prior arrangements with the utility company 13
14 furnishing electric service and the Board. Such easements for the underground service shall be kept clear of all other improvements, including buildings, Patios, or other paving, other than crossing walkways or driveways, and neither a builder nor any utility company using the easements shall be liable for any damage by either of them or their assigns, their agents, employees, or servants to shrubbery, trees, flowers, or other improvements of the Owner located on the land covered by said easements. ARTICLE 9. GENERAL PROVISION Section 9.1. Enforcement. The Association, any Owner, or any class of Owners, shall have the right to enforce, the Declaration, Bylaws, Articles of Incorporation, or Rules, other than the payment of assessments or any money or sums due to the Association by any proceeding at law or in equity, recovering its reasonable attorneys fees, costs and expenses as well as all other legal and equitable relief, all restrictions, conditions, covenants, reservations, liens and charges now or hereafter imposed by the provisions of this Declaration. In addition, the Association may impose fines and charges as described in its Rules. Failure by the Association or by any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of right to do so thereafter. Section 9.2 Severability. Invalidation of any of these covenants or restrictions by judgment or court order shall in no wise affect any other provisions which shall remain in full force and effect. Section 9.3 Amendment. The covenants and restrictions of this Declaration shall run with and bind the land and shall inure to the benefit of and be enforceable by the Association, or the Owner of any Lot subject to this Declaration, their respective legal representatives, heirs, successors and assigns for a term of twenty (20) years from the date of this Declaration is recorded, after which time this Declaration shall be automatically extended for successive periods of ten (10) years. The covenants and restrictions of this Declaration may be amended by an instrument certified by the Association s President and Secretary to have obtained the written approval by the Owners of more than fifty percent (50%) of the Lots and by not less than the First Mortgagees of two-thirds (2/3) of the Lots within the Property (based upon one vote for each mortgage). The procedure for approval by First Mortgagees is for the Association to send a dated, written notice and a copy of any proposed amendment by certified mail to each First Mortgagee at its most recent address as shown on the recorded deed of trust or recorded assignment thereof; a First Mortgagee that does not deliver to the Association a negative response within sixty (60) days after the date of the notice specified above shall be deemed to have approved the proposed amendment. Notwithstanding any provision of this Declaration, the Board may amend any provision of the Declaration in order to comply with the requirements of any change in Federal, State or local laws as they would apply to this Declaration, including the requirements of secondary lenders, including VA, FHA, FNMA or FHLMC. Any amendment to this Declaration must be properly recorded. 14
15 Section 9.4 Membership. Every person or entity who is an Owner of Record of a fee or undivided fee interest in any Lot which is subject by covenants of record to assessment by the Association, including contract sellers, shall be a member of the Association. The foregoing is not intended to include persons or entities that hold an interest merely as security for the performance of an obligation. No Owner shall have more than one (1) membership. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment by the Association. Ownership of such Lot shall be the sole qualification for membership. Section 9.5 Gender and Grammar. The singular wherever used herein shall be construed to mean the plural when applicable, and the necessary grammatical changes required to make the provisions hereof apply either to corporations or individuals, men or women, shall in all cases be assumed as though in each case fully expressed. ARTICLE 10. INSURANCE Section 10.1 Association to Maintain Insurance on Townhomes. The Board or its agent shall, to the extent reasonably available, obtain and maintain at all times: Property insurance in an amount at least equal to the full replacement value, exclusive of land and other items normally excluded from coverage, of all improvements located upon the Lots and Common Area; general liability coverage for the Common Areas in the amount of at least $1,000,000 and such other coverage as may be determined by the Board to be advisable from time to time. The Board may, in its reasonable discretion, adjust any insurance coverage based upon cost or availability of such coverage and requirements of secondary lending institutions. The insurance shall be purchased in a blanket policy form naming as insured the Association and the Townhome Owners. The policy shall identify each Townhome Owner, his address and the Property address if different, and the mortgagees, and shall contain a provision that it cannot be cancelled or materially altered by either the insured or the insurance company without at least ten (10) days written notice. A certificate shall be provided to each mortgagee and each Owner with an encumbrance on their Townhome. Premiums for insurance policies and bonds shall be charged as a common expense, which is to be paid by monthly assessments levied by the Association. This assessment shall be the personal obligation of the Owner and a lien may be placed against his respective Property. Such liens may be enforced by foreclosure proceedings in the courts and as provided in Section 3.8 hereof. Proceeds of all insurance policies purchased by the Association shall be for the benefit of the Association, the Owners and their mortgagees as their interest may appear. Section 10.2 Other Insurance to be Maintained by Owners or Renters. Insurance coverage on the furnishings and other items of personal Property belonging to an 15
16 Owner or his renter, and comprehensive general liability coverage within each Townhome shall be the responsibility of each Owner or renter thereof. Section 10.3 Fidelity Coverage. The Association shall maintain adequate fidelity coverage to protect against improper acts on the part of officers, directors, trustees and employees (if any). A bond shall be written to cover those who handle funds of the Association in an amount equal to at least the sum of three months assessments on all Townhomes plus the Association s reserve funds. Section 10.4 Annual Review. The Association shall, at least once a year, obtain qualified bids on the insurance coverage to assure that the Property is covered to at least 100% of full replacement value of all improvements on the Lots and Common Area. Section 10.5 Notice of Damage. The Association shall notify each First Mortgagee of a Lot of any damage to any improvement on a Lot which exceeds $1, and any damage to the Common areas and the improvements situated thereon which exceeds $10,000.00, within twenty (20) days after the event causing the damage; provided, however, that any First Mortgagee shall furnished to the Association written notice of its encumbrance. ARTICLE 11. DAMAGE OR DESTRUCTION Section 11.1 Destruction of Improvements on Lot. In the event of damage or destruction to a Townhome due to fire or other disaster, the insurance proceeds, if sufficient to reconstruct the Townhome, shall be deposited into a bank account of the Association. The Association shall then promptly authorize the necessary repair and reconstruction work, and the insurance proceeds and the deductible shall be applied by the Association to defray the cost thereof. Repair and reconstruction of the Townhomes, as used herein, means restoring the improvements to substantially the same condition in which they existed prior to the damage, with each Townhome having the same boundaries as before. Section 11.2 Insufficient Insurance Proceeds. If the insurance proceeds are insufficient to repair and reconstruct any damaged Townhome, such damage or destruction shall be promptly repaired and reconstructed by the Association, using the insurance proceeds and the proceeds of an assessment against the Owners of the damaged Townhomes. Any such assessments shall be equal to the amount by which the cost of reconstruction or repair of the Townhome exceeds the sum of the insurance proceeds allocable to such Townhome. Such assessment shall be due and payable as provided by resolution of the Board, but not sooner than thirty (30) days after written notice thereof. The assessment provided for herein shall be a debt of each Owner and a lien on his Lot and the improvements thereon and may be enforced and collected by foreclosure proceedings in the courts and as provided by Section 3.8 hereof. Notwithstanding the above, all Owners and all First Mortgagees holding a security interest in any or all of the destroyed or damaged Townhomes may agree that the 16
17 destroyed or damaged Townhomes shall forthwith be demolished and all debris and rubble caused by such demolition be removed and the Lot(s) regraded and landscaped to the satisfaction of the Board. The cost of such reconstruction or demolition work shall be paid for by any and all insurance proceeds available. Any excess insurance proceeds shall then be disbursed to such Owner and their First Mortgagees jointly in accordance with their respective interests. Section 11.3 Damage to Common Area. In the event of damage or destruction to all or a portion of the Common Area due to fire or other disaster, the insurance proceeds shall be applied by the Association to such reconstruction and repair of the damage elements. ARTICLE 12. CONDEMNATION Section 12.1 Condemnation. If at any time or times during the continuance of ownership pursuant to this Declaration all or any part of the Common Area shall be taken or condemned by any public authority or sold or otherwise disposed of in lieu of or in avoidance thereof, the following provisions of this Article shall apply: (a) Proceeds. All compensation, damages or other proceeds therefrom, the sum of which is hereinafter called the Condemnation Award shall be payable to the Association. (b) Complete Taking. (1) In the event that all of the Common Area are taken or condemned, or sold or otherwise disposed of in lieu of or in avoidance thereof, the Condemnation Award shall be apportioned among the Owners equally and payment of said apportioned amounts shall be made payable to the Owner and the First Mortgagees of his Lot jointly. (2) On the basis of the principal set forth in the last preceding paragraph, the Association shall as soon as practicable determine the share of the Condemnation Award to which each Owner is entitled. (c) Partial Taking. In the event that less than the entire Common Area is taken or condemned, or sold or otherwise disposed of in lieu of or in avoidance thereof, the Condemnation Award shall first be applied by the Association to the rebuilding and replacement of those improvements on the Common Area damaged or taken by the condemning public authority, unless the two-thirds (2/3) of the Owners and all of the First Mortgagees of the Lots agree otherwise. Any surplus of the award or other portion thereof not used for rebuilding and the replacement shall be used by the Association for the future maintenance of the Common Area and exterior maintenance of the improvements situated on each Lot. 17
18 The undersigned President and Secretary hereby certify that this instrument has obtained the written approval by not less than two-thirds (2/3) of the Owners and objection by less than one-forth (1/4) of the total First Mortgagees recorded on the Lots within the Property. LAKEWOOD TOWNHOMES ASSOCATION, a Colorado non-profit corporation Original Signed Thomas P. Wiederrecht, as President Original Signed Harriette M. Shankland, as Secretary STATE OF COLORADO ) ) ss. COUNTY OF EL PASO ) The foregoing instrument was acknowledged before me this 14th day of August, 2010; by Thomas P. Wiederrecht, as President and Harriette M. Shankland, as Secretary of the LAKEWOOD TOWNHOMES ASSOCIATION, a Colorado non-profit corporation. Witness my hand and official seal. My commission expires: Original Notarized, Notary Public 18
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