SUMMARY OF CHANGES FOR BURTON S WOODS SUBDIVISION CC&R AND BYLAWS

SUMMARY OF CHANGES FOR BURTON S WOODS SUBDIVISION CC&R 1

Contents Project Summary... 3 CC&R: Executive Summary... 4 CC&R: Table of Contents and Summary of Changes... 4 Bylaws: Executive Summary... 10 Bylaws: Table of Contents and Summary of Changes... 10 2

Project Summary In the fall of 2015, Burtons Woods Board of Directors and Officers decided to approach the members of our home owners association with a proposal to have our declaration of Covenants, Conditions, and Restrictions (CC&R s) professionally revised or replaced, as well as the Bylaws that accompany them. There were several factors in wanting, if not needing, to rewrite our CC&R s and Bylaws. For starters, our current CC&R s are officially expired and now in an automatic renewal period. They are also extremely outdated, and because of the heavy use of legalese, they are challenging to interpret throughout. To make matters worse, the original document submitted to the county when our subdivision was formed included the original scribbles, line outs, and addendums, making the document itself difficult to follow. And finally, one of the more important reasons to revise the documents was to ensure that the language used in the revision was clear to the average home owner, without deep rooted legalese that would cause anyone without a law degree a major headache to read! As a community we approved the project by majority vote. Going into the vote we presented the members with various options we were given by legal counsel for revising our CC&R s. Of the three options presented, we went with the most cost effective and cleanest of options, which was to replace the CC&R s and Bylaws entirely. One alternative was revising the existing document, and thus adding to the complex mix of addendums. And the third and final alternative was to not revise the CC&R itself, but to draft a summary of how we believe the existing CC&R articles should to be interpreted; the challenge with this final option was that in the court of law, the CC&R itself would be referred to in litigation, and thus having a plain English summary of cliff notes on the CC&R s would not achieve every intention of the project. With final approval, and a special assessment of $2500 total to embark on this project, the approach we took for replacing the pair of documents in their entirety was to borrow, as they say, from other HOA s that have done the same. This approach would ultimately result in significantly less legal time, and thus a lower budget (which we will discuss at a later time). A committee of 5 volunteers was formed to start the search, and scour several different neighboring HOA s and their CC&R s and Bylaws. We ultimately landed on one set that we found to be incredibly comprehensive, very well written without too much legalese, and more importantly, just restrictive enough to ensure our neighborhood continues to be a desirable and well sought place to live in Southeast Boise. We, the committee responsible for driving this project forward, believe that the new set of CC&R and Bylaw documents we place before you address the issues of our old document first hand, while not placing incredibly restrictive guidelines on you as a homeowner as other HOA s might. We want everyone to continue to invest in our neighborhood by following the covenants, 3

conditions, and restrictions herein, and we request your approval of these documents in the months to come. In this summary document, we outline the new table of contents, in an attempt to briefly describe where in the existing CC&R and Bylaw documents you might find related articles. We understand that not everyone will have the time to read every fine detail, but we do need at least 66% majority vote to submit these new CC&R and Bylaw documents to the county as replacement CC&R and Bylaws. Trust that as homeowners ourselves, we the board and the representing committee of members working on this project drafted a set of documents that we too need to live with we are held to these no differently than you, as non-board members of the community! If you have any questions during this process, please do not hesitate to contact your board of directors at burtonswoods@gmail.com. Thank you. CC&R: Executive Summary As you will find in the table below, the Table of Contents has actually grown from what we have in the current document. We removed some sections of the current CC&R, because the original CC&R was really intended for a new subdivision, holding new homeowners accountable for things like planting a certain number of bushes and trees in their yards. The original CC&R s also contain information about mortgages, and institution holders, which were meant by and large to protect the builder much more than they were to protect the homeowner. As we now live in a vibrant and mature neighborhood, these articles simply have no place in a new document. By the same token, the original document lacked significant articles that we found were critical in a new CC&R and are more commonly found in newer HOA CC&R s. As you will see, we expanded on such sections as enforcement, architectural committee, rights of homeowners, and protection of our volunteer board members. The format we ve come up with in the pages that follow is to outline the new table of contents along the left, and on the right we show which section of the old CC&R you might find similar legalese. CC&R: Table of Contents and Summary of Changes ARTICLE 1: RECITALS Recitals, page 2 1.1 Property Covered. Property covered 1.2 Purpose of Declaration. Declaration 4

ARTICLE II: DECLARATION ARTICLE III: DEFINITIONS Article I: Definitions 3.1 Architectural Committee New Definition 3.2 Articles New Definition 3.3 Assessments New Definition 3.4 Association Existing definition, not very different 3.5 Association Rules New Definition 3.6 Board New Definition 3.7 Building Lot New Definition 3.8 Bylaws New Definition 3.9 Common Area Existing definition, not very different 3.10 Declaration Existing definition, not very different 3.11 Improvement New Definition 3.12 Limited Assessment New Definition 3.13 Member New Definition 3.14 Owner Existing definition, not very different 3.15 Person New Definition 3.16 Plat Existing definition (aka Dwelling Unit), not very different 3.17 Property Existing definition, not very different 3.18 Regular Assessment New Definition 3.19 Reserve Fund New Definition 3.20 Special Assessment New Definition 3.21 Supplemental Declaration Existing definition, not very different Definitions Removed: Declarant Mortgage Mortgagee First Mortgagee Institutional Holder ARTICLE IV: GENERAL AND SPECIFIC RE- STRICTIONS 4.1 Structures. 4.1.1 Use, Size and Height of Dwelling Structure. 4.1.2 Architectural Committee Review. Article's VII, X, IX are all covered by Article IV in the new CC&R IX. A. Lot Use; X Section 1. Building Restrictions X. Architectural Control 4.1.3 Setbacks. X. Section 2 Setbacks 5

4.1.4 Party or Contiguous Walls. Article VII: Party or Contiguous Walls, sections 1-6 4.1.5 Accessory Structures. New section 4.1.6 Driveways. New section 4.1.7 Mailboxes. New section 4.1.8 Fencing. New section, IX.G. Sight and distance at intersection 4.1.9 Lighting. New section, IX.J. Landscaping 4.2 Antennae. New section 4.3 Outdoor displays. New section 4.3.1 Temporary signs: New section 4.3.2 Holiday decorations: New section 4.4 Nuisances. IX. D. Nuisance 4.5 Exterior Maintenance and Owner's New section Obligations. 4.5.1 Right of Enforcement. New section 4.5.2 Right to Correct. New section 4.5.3 Monetary Penalty. New section 4.6 No Hazardous Activities. New section 4.7 Unsightly Articles. IX. C. Garbage and Refuse Disposal 4.8 No Temporary Structures. New section 4.9 No unscreened Boats, mobile home, trailer, campers and other vehicles. 4.9.1 Recreational vehicles. 4.9.2 Inoperable vehicles. 4.10 Energy Devices, Outside. New section 4.11 Animals/Pets. IX. B. Animals IX. F. Storage of Vehicles and Equipment and E. Outbuildings 4.12 Landscaping. IX. J. Landscaping 4.13 Construction. X. Section 3 Construction Requirements 4.14 Parking Rights IX. K. Parking Rights Sections Removed: IX. H. Leasing Restrictions: this is covered by Article II: Declaration, which states that the lot is bound to the agreement whether sold or leased, used, or occupied. IX. I. Sewer Restrictions: this section was more related to the initial buildout. 6

ARTICLE V: BURTON S WOODS HOMEOWN- ERS ASSOCIATION 5.1 Membership. Article III: Membership 5.2 Voting. Article IV: Voting Rights 5.2.1 Rights. 5.2.2 Suspension. 5.2.3 Fractional Votes. 5.3 Board of Directors and Officers. New Section 5.4 Power and Duties of the Association. New Section 5.4.1 Powers. 5.5 Duties. New Section 5.5.1 Operation and Maintenance of Burton s Woods Common Area. 5.5.2 Reserve Fund. 5.5.3 Maintenance of Berms, Retaining Walls and Fences. 5.5.4 Taxes and Assessments. 5.5.5 Water and Other Utilities. 5.5.6 Insurance. Article XII: Insurance and Bond 5.5.7 Rule Making. 5.5.8 Newsletter. 5.5.9 Architectural Committee. 5.5.10 Enforcement of Restrictions and Rules. 5.6 Personal Liability. New Section 5.7 Budgets and Financial Statements. New Section 5.7.1 Year End. 5.7.2 Mid-Year. 5.8 Meetings of Association. New Section Article VI: NOTICES AND COMMUNICATIONS 6.1 Notices and communications with New Section Owners. ARTICLE VII: RIGHTS TO COMMON AREAS 7.1 Use of Burtons Woods Common Area. Article II: Property Rights 7.1.1 Suspension. 7.1.2 Dedicate or Transfer. 7.1.3 Construction. 7.2 Delegation of Right to Use. 7

7.3 Damages. ARTICLE VIII: ASSESSMENTS Article V: Assessments 8.1 Covenant to Pay Assessments. New section 8.1.1 Assessment Constitutes Lien. 8.1.2 Assessment is Personal Obligation. 8.2 Regular Assessments. V. Section 1: Special and Regular Assessments 8.2.1 Purpose of Regular Assessments. V. Section 2: Purpose of Assessments 8.2.2 Annual Increase in Regular Assessment. V. Section 3: Maximum Annual Assessment 8.2.3 Delivery of Regular Assessments. 8.2.4 Amounts Paid by Owners. 8.3 Special Assessments. V. Section 1: Special and Regular Assessments 8.3.1 Purpose and Procedure. V. Section 2: Purpose of Assessments 8.3.2 Consistent Basis of Assessment. 8.4 Limited Assessments. 8.5 Uniform Rate of Assessment. V. Section 6: Uniform Rate of Assessment 8.6 Assessment Period. V. Section 7: Date of Commencement and Due Dates 8.7 Assessment Due Date. V. Section 7: Date of Commencement and Due Dates 8.8 Estoppel Certificate. New Section 8.9 Special Notice and Quorum Requirements. V. Section 5: Notice and Quorum ARTICLE IX: ENFORCEMENT OF ASSESS- MENTS; LIENS Article V: Assessments 9.1 Right to Enforce. New Section 9.2 Assessment Liens. V. Section 9: Subordination of the Lien to Mortgages 9.2.1 Creation. 9.2.2 Claim of Lien. 9.3 Method of Foreclosure. New Section 9.4 Required Notice. New Section 9.5 Subordination to Certain Trust Deeds. New Section 9.6 Rights of Mortgagees. Article XIV: Mortgagee Protection ARTICLE X: INSPECTION OF ASSOCIATION'S New Section BOOKS AND RECORDS 8

10.1 Member's Right of Inspection. 10.2 Rules Regarding Inspection of Books and Records. 10.2.1 Notice. 10.2.2 Schedule. 10.2.3 Fees. 10.3 Director's Rights of inspection. ARTICLE XI: ARCHITECTURAL COMMITTEE 11.1 Creation. New Section 11.2 Review of Proposed Construction. 11.2.1 Conditions on Approval. XI. Section 1. Architectural Control. 11.2.2 Architectural Committee Rules and Fees. 11.2.3 Detailed Plans. 11.2.4 Architectural Committee Decisions. 11.3 Meetings of the Architectural Committee. 11.4 No Waiver of Future Approvals. 11.5 Compensation of Members. 11.6 Inspection of Work. 11.6.1 Notice. 11.6.2 Period of Inspection. 11.6.3 Noncompliance. 11.6.4 Failure to Notify. 11.7 Non-Liability of Architectural Committee Members. 11.8 Variances. ARTICLE XII. EASEMENTS XI. Section 1. Architectural Control. Article VI: Easements: No real change, rewording mostly 12.1 Future Easements. Section 1: Future Easements 12.2 Encroachments. Section 2: Encroachments 12.3 Easement for Maintenance. Section 3: Easement for Maintenance ARTICLE XIII: MISCELLANEOUS 13.1 Term. 13.2 Amendment By Owners. 13.3 Effect of Amendment. 13.4 Mortgage Protection. New Section 9

13.5 Enforcement and Non-Waiver. 13.5.1 Right of Enforcement. 13.5.2 Violations and Nuisances. 13.5.3 Violation of Law. 13.5.4 Remedies Cumulative. 13.5.5 Non-Waiver. 13.6 Interpretation. 13.6.1 Restrictions Construed Together. 13.6.2 Restrictions Severable. 13.6.3 Singular Includes Plural. 13.6.4 Captions. 13.7 Successors and Assigns. 13.8 Grandfathered Structures. EXHIBITS EXHIBIT A: LEGAL DESCRIPTION OF PROP- ERTY EXHIBIT B: CODE OF ETHICS Exhibits Legal Description New Section Bylaws: Executive Summary The Bylaws have remained largely the same. The main difference between the old and new is that the new clearly defines the differences between and Officer and a Director of the Association. The roles of each are also more clearly defined. Bylaws: Table of Contents and Summary of Changes ARTICLE I. NAME Article 1: Name and Location 1.1 Name. ARTICLE ll. DEFINITIONS Article 2: Definitions 2.1 ASSOCIATION Same 2.2 PROPERTIES Same 2.3 COMMON AREA Same 2.4 LOT Same 2.5 OWNER Same 2.6 DECLARATION Same 2.7 MEMBER Same 10

2.8 DIRECTOR Same Definitions Removed: Declarant ARTICLE Ill. MEETINGS OF MEMBERS Article 3: Meetings of Members 3.1 Place of Meeting. New Section 3.2 Notice of Meetings. Section 3: Notice of Meetings 3.3 Annual Meetings. Section 1: Annual Meetings 3.4 Deferred Annual Meeting. New Section 3.5 Special Meetings. Section 2: Special Meetings 3.6 Quorum. Section 4: Quorum 3.7 Adjourned Meetings. New Section 3.8 Voting Rights. New Section 3.9 Proxies. Section 5: Proxies 3.10 Action Without Meeting New Section 3.11 Presiding Officers. New Section ARTICLE IV. DIRECTORS 4.1 Powers. Article VII Section 1 Powers 4.2 Number. Article IV: Section 1 Number Article IV: Section 2 Term; Article V: Section 1 4.3 Election and Term of Office. Nomination, Section 2 Election 4.4 Compensation. Article IV: Section 4 Compensation 4.5 Vacancies. Article VIII: Section 6 Vacancies 4.5.3 Removal of Directors. Article IV: Section 3 Removal 4.6 Quorum. Article VI: Section 3 Quorom 4.7 Organizational Meeting. 4.8 Time and Place of Meetings. 4.9 Regular Meetings. Article VI: Section 1 Regular Meetings 4.1 Special Meetings. Article VI: Section 2 Special Meetings 4.11 Consent Meetings. Article IV: Section 5 Action Taken Without 4.12 Action Without Meeting. Meeting 4.13 Waiver of Notice. 4.14 Books, Financial Statements. Article X: Books and Records 4.15 Annual Audit. 4.16 Committees. Article VIII: Section 9 Committees ARTICLE V. OFFICERS 5.1 Executive Officers. 5.2 Additional Officers and Agents. 5.3 Removal. Article IV: Section 3 Removal 11

5.4 Compensation. Article IV: Section 4 Compensation ARTICLE VI. POWERS OF OFFICE 6.1 President. Article VIII: Section 8 Duties 6.2 Vice President. Article VIII: Section 8 Duties 6.3 Secretary. Article VIII: Section 8 Duties 6.4 Treasurer. Article VIII: Section 8 Duties 6.5 Compliance Officer. Article VIII: Section 8 Duties 6.6 Delegating Powers to Other Officers. ARTICLE VII. CORPORATE RECORDS AND RE- PORTS 7.1 Records. Article X: Books and Records 7.2 Checks, Drafts, etc. 7.3 Execution of Documents. ARTICLE VIII. INDEMNIFICATION Article XIV: Indemnification 8.1 Certain Definitions. 8.1.1 Agent 8.1.2 Proceeding 8.1.3 Expenses 8.2 Indemnification. 8.3 Determination of Standard of Conduct. 8.4 Liability Insurance. ARTICLE IX. MISCELLANEOUS 9.1 Inspection of Bylaws. 9.2 Fiscal Year. 9.3 Membership Book. ARTICLE X. AMENDMENTS 10.1 Power of Members. Article XIII: Amendments CERTIFICATE OF ADOPTION 12