RECITALS. WHEREAS, the term Lot or Lots, as used herein, shall include all eighteen (18) lots set forth in Kahler Hills Estates Phase III; and

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DECLARATION OF COVENANTS AND RESTRICTIONS APPLICABLE TO THE KAHLER HILLS ESTATES PHASE III SUBDIVISION, LOCATED IN WOLF TOWNSHIP, LYCOMING COUNTY, PENNSYLVANIA THIS DECLARATION OF COVENANTS AND RESTRICTIONS, made this 6 th day of December, 2010, by H. CARLTON DECKER, Single, of 872 Elm Drive, Hughesville, Pennsylvania (hereinafter referred to as Developer ) provides as follows: RECITALS WHEREAS, Developer is the owner of a certain tract of real estate situate in Wolf Township, Lycoming County, Pennsylvania, as described in Lycoming County Deed Book 1133, Page 139 and in Lycoming County Record Book 4661 page 223; WHEREAS, Developer has subdivided an eighteen (18) lot subdivision known as the Final Subdivision Plan of Kahler Hills Estates Phase III more fully described in Lycoming County Record Book, Page and in Lycoming County Map Book page ; (hereinafter referred to as Kahler Hills Estates Phase III ); WHEREAS, the term Lot or Lots, as used herein, shall include all eighteen (18) lots set forth in Kahler Hills Estates Phase III; and WHEREAS, Developer desires to provide for the preservation of values and amenities in Kahler Hills Estates Phase III to that end, desires to subject each of the Lots within Kahler Hills Estates Phase III to the Covenants and Restrictions hereinafter set forth, each and all of which is and are for the benefit of said Lots and the future owners thereof; and NOW, THEREFORE, Developer declares that each Lot within Kahler Hills Estates Phase III, shall be held, transferred, sold, conveyed, and occupied subject to the following Covenants and Restrictions: Section 1. Restrictions for Use and Development. 1.01. Lots may not be further subdivided. 1.02. Lots will be used for single family residential purposes only, however, this restriction shall not be construed to prevent the use and

maintenance of a one room home office located within the main dwelling house. 1.03. No manufactured home, mobile home, trailer, tent, shack, shed or temporary building of any kind shall be permitted on any Lot. 1.04. No outbuilding, basement, garage, motor home, trailer or camper of any kind situate on any Lot shall be used as a temporary or permanent residence. 1.05. No main dwelling house shall be erected on any Lot having less than two thousand five hundred (2,500) square feet of finished heated living area, excluding garages. Any finished heated portion of a basement area may be included at a ratio of one-half (½) that of ground floor living space. Unfinished or unheated areas shall not be considered living space. 1.06. All garages, outbuildings or extensions to the main dwelling house erected in conjunction with, appurtenant to, or separated from the main dwelling house and also any additions or alterations to be made at any time to the main dwelling house, shall correspond as to style, architecture, and quality as nearly as possible to the main dwelling house. 1.07. Any initial construction on any Lot must include construction of the main dwelling house and must have the shell and exterior finish of the main dwelling house completed within nine (9) months of the date of such initial construction. All grading and landscaping or any excavation work must be completed within twelve (12) months of the date of said initial construction. All subsequent construction on any Lot must have the exterior finish completed within nine (9) months of the date of such initial construction. 1.08. All initial construction plans and specifications for the main dwelling house and all other structures on any Lot must be reviewed and approved by Developer prior to the commencement of any construction. Developer also reserves the right to review all plans and specifications and restrict, in Developer s sole discretion; the construction, installation, and erection of any main dwelling house, additions to any main dwelling house, any other structures or improvements, including the planting of trees or landscaping; which would restrict the panoramic sight view from other Lots in Kahler Hills Estates Phase III and residual lands of Developer. Such plans and specifications shall be submitted no fewer than thirty (30) days prior to the projected date of commencement of the placement, installation, construction, erection, change, or alteration. If Developer fails to approve or disapprove such plans and specifications 2.

within said thirty (30) day period after said plans and specifications have been submitted to Developer, approval will not be required and this Covenant shall be deemed to have been fully complied with. This covenant shall remain in effect until such time as a main dwelling house is constructed on each Lot in Kahler Hills Estates Phase III. 1.09. No building, fence, wall, or other structure, including, but not limited to landscaping and trees, shall be commenced, placed, installed, constructed, erected, or maintained upon any Lot which shall obstruct the sight lines necessary for the safe ingress, egress, and regress to and from any public streets or roads or any private driveways within Kahler Hills Estates Phase III. 1.10. The exterior of the main dwelling house and all other structures constructed on any Lot shall be maintained and repaired, at the Lot owner s expense, keeping the same in comparable condition to that at the time of the initial construction, excepting only normal wear and tear. All Lots are to be maintained in a clean and sanitary condition and all lawns, shrubs, and other vegetation shall be groomed and maintained regularly as needed. All walkways and driveways located on any Lots shall be kept free of snow, ice, and debris. With respect to Lots on which construction of a main dwelling house is deferred, vegetation shall at all times be maintained in a reasonably neat and trimmed condition and groundcover shall not exceed six (6) inches in height. 1.11. If all or any portion of a Lot owner s main dwelling house or any other structure constructed on any Lot is damaged or destroyed by fire or other casualty, it shall be the duty of the Lot owner, with all due diligence, to demolish and remove such main dwelling house or other structure from the Lot. 1.12. To permit the coordination of finish grading and landscaping operations and to provide for permanent or temporary storm drainage facilities as development work progresses Developer, at Developer s expense, shall have the right, but not the obligation, to change, alter, modify or revise, the finish grade and to complete landscape work within an area, ten (10) feet wide, located inside the property line of each Lot or as may be necessary for the proper grading and construction of drainage swales beyond said ten (10) foot wide area after title to a Lot has been transferred to a Lot owner. Easements for the installation and maintenance of utilities and drainage and storm water management facilities are restricted as shown on the recorded subdivision and land development plans. The easement area of each lot and all improvements in it shall be maintained 3.

continuously by the owner of the lot, except for those improvements for which a public authority or utility company is responsible. Within these easements, no structures, planting, or other material, other than those shown on the plan details, shall be placed or permitted to remain which may damage or interfere with the installation and maintenance of utilities, or which may change the direction of flow of drainage channels in the easements, or which may obstruct or retard the flow of water through drainage channels in the easements. Wolf Township shall be granted passage along drainage easements labeled Channel 1 and Channel 2 to perform inspections and maintenance of storm water facilities, if necessary. No building shall be placed nor shall any material or refuse be placed or stored on any lot within twenty (20) feet on any edge or any open water source, except that clean fill may be placed nearer provided that the material water course is not altered or blocked by such fill. Lot owners are responsible for soil erosion procedures and permits on their lot(s) and shall become a co-permittee with the Developer prior to commencement of construction. Lot owners shall prepare an individual lot drawing indicating erosion and sedimentation control Best Management Practices to be presented to the Lycoming County Conservation District. In addition, driveways must allow for the passage of water for drainage and soil erosion procedures. Lot owners are responsible for notifying contractors, municipal, authorities, and the conservation district if any changes or alterations are made which may affect drainage. Lot owners are responsible for the construction of on-lot storm water management systems and bio-retention area on their lot(s) and shall retain the services of an engineer to assure proper location, sizing, and construction. Storm water facilities shall not be located in the vicinity or directly up gradient of on-lot sanitary sewage systems. Any existing wetlands or stream channels identified on the recorded plot plan are the responsibility of the lot owner and shall not be disturbed. 1.13. No Lot shall be used or maintained for a dumping ground for rubbish, trash, garbage, or other waste and all such material shall be kept in sanitary containers. All equipment for storage of such material shall be kept in a clean and sanitary condition. All trash and household garbage must be disposed of in a timely manner. Incinerators and the burning of trash, rubbish, garbage, and other waste material, including leaves and other tree products, is expressly prohibited. The foregoing shall not prohibit Developer or any builder to burn trash or other construction debris in connection with the construction of site improvements. Compost containers are permitted. Compost piles must be kept in an enclosure of sufficient height and material to prevent disturbance by wind or animals. 4.

1.14. No Lot shall be used to store unlicensed vehicles, vehicles not meeting the current Pennsylvania Motor Vehicles inspection criteria or licensed recreational vehicles unless stored entirely within a building. 1.15. No animals, livestock, or poultry of any kind shall be raised, bred, or kept on any Lot. However, dogs, cats, and other customary household pets may be kept so long as they are not kept, bred, or maintained for commercial purposes and provided that not more than three (3) pets in the aggregate may be kept on any Lot. Household pets shall at all times be kept on a leash or some other appropriate means of control. Should any question arise as to what constitutes a household pet, the decision of Developer shall be final. 1.16. No noxious, unsightly, or offensive activity, including vehicle repairs, shall be carried on upon any Lot or on the streets abutting the same nor shall anything be permitted to be done thereon which may become an annoyance or nuisance to the neighborhood. 1.17. No mining operations or quarrying of any kind shall be permitted upon or in any Lot, however oil and gas leasing and corresponding operations shall be permitted. 1.18. No satellite dish antennas, TV antennas, "earth stations," radio antennas, cell towers, or towers of any type, other than one digital satellite dish antenna no greater than thirty-six (36) inches in diameter, shall be permitted to be erected on any Lot. 1.19. No above ground swimming pools shall be permitted on any Lot. Any below ground swimming pools must be enclosed by permanent fencing for security purposes. Section 2. Road and Driveway Construction. 2.01. Each Lot owner acknowledges that the roads constituting part of Kahler Hills Estates Phase III shall remain private and that there shall be no obligation on the part of the Wolf Township officials or government to maintain any of such roads unless and until: a). such roads are constructed to Wolf Township standards, b). such construction is inspected by or investigated by engineers retained by Wolf Township, who find that the construction is satisfactory, c). such roads are offered for dedication by Developer, or his successors or assigns, and 5.

d). such roads have been duly accepted for dedication by Wolf Township at an open, public meeting. 2.02. Any common driveways between two or more Lots shall be subject to an agreement for maintenance between the respective Lot owners. Developer shall cause said agreement to be prepared, executed and recorded prior to the conveyance of the first Lot using said driveway. The maintenance agreement shall be of a format acceptable to the Lycoming County Planning Commission and the Wolf Township Board of Supervisors. Section 3. Water Resources. 3.01. In order to limit the potential for pumping interference between wells, all groundwater supply well systems must utilize a flow restrictor that limits the instantaneous pumping rate to no more than one and onehalf (1.5) gallons per minute, which is equivalent to two thousand one hundred sixty (2,160) gallons per day from the well submersible pump. All residences must also be equipped with a suitably-sized water storage system to meet the peak load needs of each residence. Section 4. Enforcement, Severability, Term, Amendment and Assignment of Developer s Rights. 4.01. Enforcement. Except as otherwise provided herein, Developer or any Lot owner shall have the right to enforce, by any proceeding at law or in equity, all Restrictions and Covenants now or hereafter imposed by the provisions of this Declaration. Failure by Developer or any Lot owner to enforce any Covenant or Restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter. 4.02. Severability. Invalidation of any one of the Covenants or Restrictions by judgment or court order shall not affect any other Covenant or Restriction, which other Covenants or Restrictions shall remain in full force and effect. 4.03. Term. These Covenants and Restrictions are to run with the land and shall be binding on all parties and all persons claiming under them for a period of twenty-five (25) years from the date of this Declaration, after which time said Covenants and Restrictions shall be automatically extended for successive ten (10) year terms unless an instrument is signed by a majority of the then Lot owners of Kahler Hills Estates Phase III agreeing to change said Covenants and Restrictions in whole or in part. 6.

4.04. Amendment. This Declaration may be amended during the first twenty-five (25) year period by an instrument signed by not less than ninety percent (90%) of the Lot owners, and thereafter by an instrument signed by not less than seventy-five percent (75%) of the Lot owners. Any amendment must be recorded. 4.05. Assignment of Developer s Rights. Developer's rights to undertake any action, approval, or other power under this Declaration may be assigned by Developer, at Developer s sole discretion. All Lot owners shall be notified in writing of such assignment. IN WITNESS WHEREOF, the undersigned has hereunto set his hand and seal as of the day and year first above set forth. WITNESS: H. Carlton Decker, Developer 7.

COMMONWEALTH OF PENNSYLVANIA: SS. COUNTY OF LYCOMING : On this, the day of December, 2010, before me, a Notary Public, personally appeared, H. CARLTON DECKER, Single, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he executed the same for the purpose therein contained. IN WITNESS WHEREOF, I have hereunto set my hand and notarial seal. Notary Public This document was prepared by: HESS AND HESS, P.C. ATTORNEYS-AT-LAW 30 South Main Street Hughesville, PA 17737 (570) 584-2141 8.