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Alamance HOA®ii~ C7~v~i~prr~et, L.C i'hil Christmas - 799-~ 3~2 12D8 ~lliarrlsburg Court ~Irnil~gton, NC 2841 r•' e ~l- duck `~ ~3" ~wdl ~~ l~ ~' €~c>~.s i~ ~ t~ STATE OF NORTH CAItOI,II~IA COUNTY OI' NEB HANOVI~R I;tECLARA7['ION OF COVENANTS CO~ITIONS ~ REST~BICTIONS FOR AI:,AMANCE THIS DECLARATION, made the _ day of 3une, 2008, by HOLIDAY DEVELOPMENT, LLC, a North Carolina limited liability company, hereinafter referred to as "Declarant' or "Developez" for the purposes hereinafter stated: WITNESSI;TH WHEREAS, Declarant is the owner of that certain rest property in New Hanover County, North Carolixta, known as Alamance which is shown an a plat recorded in the Office of the Register of Deeds of New Hanover County, North Carolina, in Map Book , at Page (hereinafter the "Subdivision Plat"} to which reference is made for a mare particular description (the "Property"); and NOW, THEREFORE, Declarant declares that the Property described above shall be held, sold and conveyed subject to the fatlaw+ing easements, restrictions, covenants, and conditions, which are far the purpose of protecting the value and desirability of, and which shall run with the land and be binding on all parties having any right, title ar interest in the Property or any part khereof, their heirs, successors and assigns, and shall inure to the benefit of each owner thereof. ARTICLE I. DEFINITIONS SECTION 1. Additional Property shall mean and refer to any lands which are now owned or may be hereafter acquired or developed by Declarant, in addition to the above described Property, and annexed to and made a part of the Development (as hereinafter defuted) pursuant Eo Article VII hereof. SECTION 2. Association shall mean and refer to Alamance Homeowners' Association, Inc., aNorth Carolina nonprofit corporation, its successors and assigns, the owners association organized for the purposes set forth in Article IlI hereof. SECTION 3. l~ssessments shalt mean the Annual, Special, Insurance, Ad Valorem and Working Capital Assessments defined in Article N hereof. SECTION 4. Common Area(s) shall mean and refer to al! real property within the Development owned by the Developer or the Association for the common use and enjoyment of the Owners, including any facilities located on such real property, including but not limited to open spaces, common landscaping areas or entryways, stormwater retention ponds, carnmon park areas and common perimeter fencing, SECTION 5. Declarant shall be used interchangeably with Developer (which designations shall include strtgular, plural, masculine and neuter as required by Ehe context) and shall mean and refer to the Declarant, Holiday Development, LLC, its successors and assigns, if such successors or assigns should acquire undeveloped property from the Declarant for the purpose of development. SECTION 6. Declaration shall mean this instnrment as it may be from time to time amended or supplemented. SECTION 7. Development shall mean the Property plus any Addirional Property. SECTION &. Limited Common Areafs) shall mean areas and facilities within any Lot which are far the exclusive use of the Lot Owner but which the Association is obligated to maintain pursuant to the terms of this Declaration. There shall be no Limited Common Area on any Lot unless the same is specibeakiy shown on the Subdivision Map for ALAMANCE . SECTION 9. Lat s shall mean and refer to any numbered lot within the Development. SECTION ]0. Owner shall mean and refer to the record owner, whether one or more persons or entities, of a fee simple title to any Lot, including contract selkers, but excluding those having such interest merely as security for the performance of an obligation. SECTION I I. Pro a shalk mean the Property as defined in the preamble to this Declaration. SECTION I2. Members shall mean and refer to every person or entity who has a Membership in the Association. SECTION 13. Membership shat[ mean and refer to the rights, privileges, bene£ts, duties and obligations, which shall inure to the benefit of and burden each Member of the Association. ARTICLE IY. EASEMENTS SECTION 1.Owners' Easement ofEn'o ent. Every Owner shall have and is hereby granted a right and easement of enjoyment in and to the Common Area, if any, which shall be appurtenant to and shall pass with the title to every Lot, subject to the provisions of Article III hereof. {a) Every owner shall have an easement For ingress, regress and egress aver Alamance Court (a ~}5' public righE-0f--way) as well as easements across, through and over aEl easements as shown on the subdivision map for the development ,including but not limited to the right of the Association and lot owners to install and maintain utilities across Alamance Court and such other areas as the Declarant or Association may designate. (b) The Association may make and amend reasonable rules and regulations governing the use of common areas by the Owners. SECTIDN 2. Easements in Favor of Declarant. The followhtg easements are reserved to Declarant, Declarant's successors and assigns: (a) All easementsasnecessaryinthelandsconstitutingtheDevelopmentfortheinstal[ationand maintenance of utilities and ingress, egress and regress for access as shown on the subdivision plat for the Subdivision (the "Proper') as retarded in the New Hanover County Registry and referred to on the first page of this Declaration, including the right of the Declarant to go upon the ground with workers and equipment to erect, maintain, inspect, repair and use electric and telephone lines, wires, cables, conduits, sewers, wa#er mains and other suitable equipment for the conveyance and use of electricity, telephone equipment, gas, sewer, water or other public conveniences or utilities on, in or over each Lot or portion thereof designated for utility easements and such other areas as are shown as utility Casement areas on the plat of the Property or any Additional Property retarded or to be recorded in the of#ice of the Register of Deeds of Ncw Hanovei• County; the right to cut drain ways for surface water whenever such action may appear to the Developer to 6e necessary in order to maintain reasonable standards of health, safety and appearance; the right to cut any trees, bushes or shrubbery; the right to make any grading of the soil, or to take any other similar action reasonably necessary to provide economical and safe utility installation and to maintain reasonable standards of hCaith, safety and appearance; the night to locate wells, pumping stations, and tanks within residential areas, or upon any Lot with the permission of the owner of such Lot; and the right to subject the Property and any Additional Property to a contract with Progress Energy Carolinas, Inc., for the installation of street lighting, which contract requires a continuing monthly payment to Progress Energy Carolinas, Inc., by each resident customer for street Iighting service and the right to contract with Fiedmont Natural Gas to furnish each lot with hook-up capacity far natural gas with each lot owner to pay for its gas usage, (such rights may be exercised by any licensee of the Declarant but this reservation shall not 6e considered an ob]igation of the Declarant to provide or maintain any such utility or service). (b) Easements over Alamance Court, if any, access easements, utility easements including, but not limited to, the I O foot access and utility easement adjacent any public road, the 20 foot buffer area along the eastern and western subdivision property lines, an easement to install and maintain the 30 foot drainage easement and the stormwater drainage pond area, within the Development as necessary to provide access, ingress and egress and utility service and accommodate stormwater runoff all as shown on the Subdivision Plat. {c) an easement to the Declarant, its employees and agents and thereafter to the Associatinn over and across the lots to install, Brent and maintain a common perimeter fence along the outer boundary Eine of the subdivision, provided this grant of easement does not obligate the Declarant to install any perimeter fence which wilt be at the Declarant's sole discretion. SECTION 3. Other Easements. The following easements are granted by Declarant to others: (a) an easement is hereby granted to all police, fire protection, ambulance and alE similar persons, eampanies or agencies performing emergency services, to enter upon aEl Lots and Common Area in the performance of their duties. (b) incaseofanyemergencyoriginatinginorthreateninganyLotorCommonAreas,regardless of whether any Lot Owner is present at the time of such emergency, the Association or any other person authorized by it, shalt have the right to enter any Lot for the purpose of remedying or abating the causes of such emergency and making any other necessary repairs not performed by the Lot Owners, and such right of entry shall bB immediate. (c) the Association is granted an easement over each Lot for the purposes ofexercising its rights under Article VI, Section 5, of this Declaration. SECTION 4. Nature of Easements. All Basemen#s and rights described herein are perpctual easements appurtenant, running with the land, and shall inure to the benefit of and be binding on the undersigned, its successors and assigns, and any Owner, purchaser, mortgagee and other person having an interest in the Property or any Additional Property, or any part or portion thereof, regardless of whether or no# reference is made in the respective deeds of conveyance, or in any mortgage or mist deed or other evidence of obligation, to the easements and rights described in this Declaration. ARTICLE ID. HOMEOWNERS' ASSOCIAT101y SECTION 1. Formation of Association. ALAMANCE OWNERS' ASSOCIATION is a nonprofit corporation organized pursuant to thB Nonprofit Corporation Act of the State of North Carolina fox the purpose of establishing an association for the Owners of Lots to operate and maintain the Common Areas and to provide any other services provided in this Declaration or agreed to by a majority of the Members. SECTION 2. Membership. Every Lot Owner shall be a Member of the Association. Membership shall be appurtenant to and may not be separated liom Lot ownership. SECTION 3. Voting Ri;ehts. The Association shall have two classes of voting Membership. Class A. Class A Members shall be all Owners, with the exception of the Declarant, and shall be entitled to one vote for each Lot owned. When more than one person holds an interest in any Lot, all such persons shall be Members. The vote for such Lot shall be exercised as they determine, but th no event shall more than one vote be cast with respect to any Lot. Fractional voting with respect to any Lot is prohibited. Class B. The Declarant shall be a Class B Member and shall be entitled to three (3) votes For each Lot owned. The Class B Membership shall cease and be converted to Class A Membership on the happening of any of the following events, whichever occurs earlier. (a) when the total vote outstanding in the Class A Membership equals the total vote out standing in the Class B Membership; or (b) on December 31, 2015; or (c) upon the voluntary surrender of all Class B Membership 6y the holder thereof. The period during which there is a Glass B Membership is sometimes referred to herein as the "Declarant Control Period". SECTION 4. Powcrs, Frivile~es. Rights and Obligations. In addition to the rights and powers granted to the Association in its charter and to the rights and powers with regard to assessments set forth in Article N of this Declaration, the Association shag have and possess and shall perform and exercise the following powers, privileges, rights and duties, subject, however, to the rights of the Declarant contained in Article V hereof: (a) The Association shall be entitled to make and amend reasonable rules and regulations governing use of the Common Areas by the Owners; {b) The Association shall be responsible far the operation, upkeep, mahntenance, protection, preservation, repairs, reconstruction and/or replacement of {i) the Common Areas and improvements and additions thereto, and {ii) the Limited Common Areas, if any; provided, however, that in the event that any of the above activities are necessitated by the willful actor active or passive negligence of any Owner, his family, guests, invitees or tenants, or is caused by fire, wind, rain, blowing water, lightening, smoke or other hazard or casualty, and the cost of such maintenance, repair or other activity is not fully covered by insurance, then, at the sale discretion of the Board of Directors ofthe Association, the cost of the sarne shall be the personal obligation of the Owner and if not paid to the Association upon demand, may be added to the annual assessment levied against said Owner's Lot; (c) The Association may engage in such other activities as authorized by a majority vote of the Members. (d) 'The Association may suspend the votingrights and privileges of an Owner for any period during which any Assessments against the Owner's lot remain unpaid and for a period not to exceed 60 days for an infraction of the published rules and regulations of the Association: (e) The Association may mortgage or convey the Common Areas, or dedicate or transfer all orpart of the Common Areas, to any public agency, authority or utility for such purposes and subject to such conditions as may be agreed to by at least two thirds of the Members: {f} The Board ofDirectors on behalf ofthe Association, as a common expense, may at all times keep the Common Areas and other property of the Association, if any, insured against loss or damage by fire or other hazards and Other such risks, including, but not limited to directors' liability and gublic liability insurance, upon such teens and far such amounts as maybe reasonably necessary from time to time to protect such property, which insurance shall be payable in case of loss Eo the Association for all Members. The Association shall have the sole authority to deal with khe insurer in the settlement of claims. Such insurance shall be obtained without prejudice to the right of each Member to insure his personal property for his own benefit at his own expense. In no event shall the insurance coverage obtained by the Association be brought into contribution with insurance purchased by Members or their mortgagees. SECTION 5. Government Permits. Obligations under all governmentpermits for the Development shall be the obligation of the Association an the following terms and conditions: A. General. AHer completion of construction of any facilities required to be constructed by Declarant pursuant to permits, agreements and easements for the Development, all duties, obligations, rights and privileges of the Declarant under any water, sewer, stormwater, erosion control and utility agreements, easements and permits for the Planned Cornmunity with municipal or governmental agencies or public or private utility companies, shall be the duties, rights, obligations, privileges and the responsibility of the Association, notwithstanding that such agreements, easements or permits have not been assigned or the responsibilities thereunder specifically assumed by the Association. Notwithstanding, the Association shall execute any documents required or requested by appropriate governmental agencies in furtherance of the covenant. B. 5tormwater.Permit{s). Any stormwater retention ponds and related facilities for the Development which have or are to be constructed by or on behalf of the Declarant constitute Common Elements and the Association, at its sole cost and expense, is responsible for the operation and maintenance of such facilities. The Association and each of its Members agree that at anytime after (i) all work required under any stormwater permits for the Development have been completed, and (ii} the Developer is not prohibited under the NC Department of Environment and Natural Resources {DEIVIt) regulations from transfemng the stormwater permit{s) for the Development to the Association, the Associations's officers without any vote or approval of Lot Owners, and within 10 days after being requested to do so, will sign all documents required by DENR for the stormwater permit(s) to be transferred to the Association; provided, however, that at the time the Developer requests that the Association accept transfer of the stonnwater permit{s), the Developer has delivered to the Association a certifecate from an engineer licensed in the State of Notch Carolina, dated no more than 45 days before the date of the request, that all stonnwater retention ponds, s~vales and related facilities are constructed in accordance with the plans and specifications therefore. The Association shall indemnify and hold harmless the Developer from any obligafions and costs under any stormwaterpemyits or forogerationand maintenance ofthe stormwaterretentionponds and related facilities, except during the Declarant Control Period, the Developer shall be responsible for repairing any damage to such facilities caused by development activities. 'The Developer shall not be responsible for damages to stormwater retention ponds and related facilities caused by construction of residences or other activities by Owners, their agents and contractors, ugon theirLots. If the Association fails to sign the documents required by this paragraph, the Developer shall be entitled to specific performance in the courts of North Carolina requiringthat the appropriateAssociation a~cers sign all documents necessary for the stptmwater permits} to be transferred to the Association. Failure of the officers to sign as provided herein shall not relieve the Assaciation of its obligations under this section. In addition, each Owner for the Owner, the Owner's heirs, successors and assigns, by acceptance of a deed from the Declarant, for a Lot hereby irrevocably appoints Philip Ralph Christmas as the Owner's attorney in fact, on behalf of the Owner and Assaciation, to sign all documents required by DENR necessary far the storrnwater permit(s) to be transferred to the Association; provided, however, that the Declarant shalt first have requested as provided above that an offerer of the Association execute such documents and any officer has failed to do sa within the time provided. C. New Hanover County. Erosion Control. Permit #GP29-07. During the building of any home on any lot; the Owner or builder constructing the improvements on said lot shall be required to install and maintain the approved silt fence required underthe erasionepntral permik from clearing of site to completion of grade at yard with sod grass. ARTICLE fV. COVENANTS FOR ASSESSMENTS SECTION l . Creation of the Lien and Personal Oblisation of Assessments. Each Owner of any Lot, by acceptance of a deed for the Owner's Lot, whether or not it shalt 6e so expressed in such deed, covenants and agrees to pay to the Assaciation the following assessments (collectively the "Assessments"): A. Annual Assessments; B. Special Assessments for Capital Improvements: C. insurance Assessments; D. Ad Valorem Tax Assessments; and E. Working Capital Assessments. The Assessments, together with interest, casts and reasonable attorney's fees, shall be a charge on the sand and shall he a continuing lien uponthe respective Lat againstwhich the Assessments are made. Each such Assessment, together with interest, costs and reasonable attorney's fees, shall also be the personak obligation of the person who was the Owner of such Lot at the time when the Assessment fell due The personal obligation for delinquent Assessments shall not pass to the Owner's successors in title unless expressly assumed by them. SECTION 2. Purpose of Annual Assessments. The Annual Assessments levied by the Association shall be used exclusively to promote the recreation, health, safety and welfare of the Owners and residents of the Property and Additional Property and for the impmvement and maintenance of the Common Areas and any Limited Common Areas. The funds arising from said assessments or charges, maybe used for any or all of the following purposes: operations, maintenance and improvement of the Common Areas, and any Limited Common Areas, including payment of utilities, enforcing this Declaration, paying taxes, insurance premiums, legal and accounting fees and governmental charges, establishing working capital, and in addition, doing any other things necessary or desirable in the opinion of the Association to keep the Common Areas and Limited Gammon Areas in good operating order and repair. SECTION 3. Annual Assessments. Annual Assessments shall be in an amount to be fixed from year to year by the Boazd of Directors which may establish different rates from year to year as it may deem necessary for the purposes set forth in Section 2 above. The amount of the Annual Assessment against each Lot for any given year shall be faced at least 30 days in advance of the Annual Assessment period; provided, however, that the fnst Annual Assessment shall be set prior to the conveyance of the first Lot to an Qwner and written notice to the Owners to be subjected thereto shall be delivered to the Owners at or prior to the closing of their Jots. Written notice of each Annual Assessment thereafter shall 6e sent to every Owner subject thereto. The due date shall be established by the Soard of Directors and the Board of Directors shall have the authority to require the assessments to be paid in pro rata periodic installments, as the Board may in its discretion determine. The Association shall, upon demand, and for a reasonable charge famish a certificate signed by an officer of the Association setting forth whether the assessments ors a specified Lot have been paid. A. Prom and after.Ianuary 1 ofthe year immediately following the conveyance ofthe first Lat to an Owner, the Annual Assessment may be increased each year not more than ten percent (] 0%} above the Annual Assessment for the previous year without a vote of the Members, except as herein provided. B. Prom and afker.Ianuary 3 of the year immediately following the conveyance of the first Lot to an Owner, the Annual Assessment maybe increased above ten percent (10%} 6y a majority vote of the Members who are voting in person or by proxy at a meeting duly called for this purposc. C. The Board of Directors may increase the amount of the Annual Assessmcnt to $900.04 per Lot notwithstanding the provisions of subparagraphs A and B above, and therea8er the limitations set forth in said subparagraphs shall apply to any annual increase. SECTiON4. S ecialAssessmeu#sforCa italIm rovements.InadditiontotheAnnualAssessments authorized above, the Association may levy, in any assessment year, a Special Assessment applicable to the year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Areas and any Limited Common Areas, including factures and personal property related thereto, provided that any such assessmenk shall have the assent of a majority of the Members who are voting in person or by proxy at a meeting duly called for this purpose. SECTION 5. h~surance Assessment. All premiums on insurance policies purchased by the Board of Directors or its designee pursuant to Article III and any deductibles payable by the Association upon loss shall be a common expanse, and the Association may in any assessment year levy against the Owners equally _ an "Insurance Assessment", in addition to the Annual Assessments provided for under Section 3 above, which shall be in an amount sufFicient to pay the annual cost of all such deductibles and insurance premiums not included as a component of the Annual Assessment, Such assessment shall not be subject to the I0% limitation set out in Section 3. A. and B. of this Article fV. SECTION 6. Ad Valorem Tax Assessments. Al l ad valorem taxes levied against the Common Areas, if any, shall be a common expense, and the Association may in any assessment year levy against the Owners equally an "Ad V alorem Tax Assessment", in addition to the Annual Assessments provided forunder Section 3 above, which shall be in an amount sufficient to pay such ad valorem taxes in such year not included as a component of the Annual Assessment. Such assessment shall nat be subject to the 10% limitation set out in Section 3. A. and B. of this Article [V. SECTION 7. Working Capital Assessments. At the time title to a Lot is conveyed to an Owner by Declarant, the Owner shall pay to the Association as working capital an amount equal to two months' assessments. Such funds shall be used solely for initial operating and capital expenses of the Association such as prepaid insurance, supplies, and furnishings, fixtures and equipment for the Common Areas, etc. Amounts paid into the working capital fund are not to be considered as advance payment of the Annual or any other assessments. Any working capital funds remaining after the last Lat has been sold by Declarant shall be transferred to and become part of the general funds of the Association, in the discretion of the Board of Directors. SECTION 8. Notice and orum For An Action Authorized under Sections 3 and 4. Written notice of any meeting called for the purpose of taking any action authorized under Section 3 and 4 shall be sent to all Members not Icss than twenty (20) days nor mare than sixty (ti0) days in advance of the meeting. At the fast such meeting called, the presence of Members or of proxies entitled to cast fifty percent (54%) of all votes of each class of Membership shall constitute a quorum. The required quorum at the subsequent meeting shall beone-half (1/2) ofthe required quorum atthe precedingmeeting. No such subsequent meeting shall beheld more than sixty (60) days following the preceding meeting. SECTION 9.1Jniform Rate of Assessmcnt. The Assessments must be faxed at a uniform rate for all Lots and may be collected on a monthly basis. SECTION 10. CommencementofAssessments. Assessments for each Lotshalicommenceupontlae date of acceptance by an Owner of a deed from Declarant e Assessment or rOstalhnent the clot not pa d within ttiAss 30 da s after the duerdate sh tt,Association. Any t rtY { ) Y a bear interest from the due date at the highest rate allowable by law. The Association may bring an action at law against the Owner personally obligated to gay the same, or foreclose the lien against the Owner's Lot in the same manner as a deed of trust under power of safe as alEowed under North Carolina Law. Na Owner may waive ar otherwise escape liability for the Assessments provided for herein by non-use of the Common Axea or abandonment of his Lot. All unpaid installment payments ofAssessments shall become lznmediately due and payable if an Owner fails to pay any installment within the time permitted. SECTION 12. Suhordination Of The Lien To Mortaaae. The lien of the Assessments provided for herein shall be subordinate to the lien of any first mortgage. Sale or transfer of any Lat shall not affect the Assessment lien. However, the sale oxtransfer of any Lotpursuant to mortgage foreclosure or any proceeding in Lieu thereof, shall extinguish the lisp of such Assessments as to payments which became due prior to such sale or transfer. No sale or transfer shall relieve such Lot from liability for any Assessments thereafter bcxoming due ox fmm the lien thereof SECTION 13. Lien For Road Improvements NecsssitatedBy Construction On Individual Lots. The Association shall have the right to assess a lien againstan individual lot owner for the cast of repairs required to return the dedicated roads within the subdivision to the standard required by the North Carolina Department of Transportation where the repairs are necessitated byand attributable to construction activities occurring on the lot being assessed. ARTICLE V I2ICsHTS OF DEVELOPEI2/DEVELOPER CONTROL The Declarant shall have and there is hereby reserved to the Declarant, the fallowing rights, powers and privileges which shall be in addition to any other rights, powers and privileges reserved to the Declarant herein: SECTION 1. The Assaciation/Period ofDeclarationControl. All the powers and duties ofhe Board of Directors of the Association may be exercised by the Declarant, and the Developer shall appoint aEl members of the Board of Directors, until such time as ninety percent (90%) of the Lots within the Development have bcen said or conveyed by the Declarant to purchasers, or until December 31, 2015 whichever occurs first, (the "Developer Control Period"). Management and control can be voluntarily transferred by Declarant ko the Owners at any time. SECTION 2. The Architectural Control Committee. All duties and responsibilities conferred upon the Architecture 1 Control Committee by's Declaration or the By-laws ofee Association steal! be exercised and performed by the Declarant or its designee, so long as Declarant shall own any Lot within the Property or any Additional Property. Thereafter, the Architectural Committee shall be as designated th Article Vi, Section 1. SECTION 3. Plan afDevelo meat. The right to change, alter or re-designate the allocated planned, platted, or retarded use or designation of any of the lands constituting the Development (so long as the Declarant retains title to said lands) including, but not limited to, the right to change, alter or re-designate road, utility and drainage facilities and easements and to change, after orre-designate such other present and proposed amenities or facilities as may in the sole judgment and discretion of Declarant be necessary or desirable. The Declarant hereby expressly reserves unto itself, its successors and assigns, the right to re-plat any one { i } or more Lots shown on the plat ofany subdivision of the Property ar Additional Property in order to create one or more modified Lots; to further subdivide tracts shown on any such subdivision plat into two or more Lots; to recombine one or more Tracts or Lots or a tract and hots to create a larger tract; to eliminate from this Declaration Lots that are oat otherwise buildable or are needed for access or are needed for use as private roads oraccess areas, and to take such steps as are reasonably necessary to make such re-platted Lots or tracts suitable and fit as a building site or access axes or roadway. SECTION 4. Amendment of Declaration, ny the Declarant. This Declaration may be amended by the Declarant, or the Board of the Association, as the case maybe, as follows: A. In any respect, prior to the sale of the I"irst Lot. S. To extend this Declaration as it applies to Additional Property. C. To correct any obvious error or inconsistency th drafting, typing or reproduction. D. To qualify the Association or the Property and Additional Property, or any portion thereof, for tax exempt status. E. To include any platting change as permitted herein. F. To conform this Declaration to the requirements of any law or governmental agency having legal jurisdiction over the Property or any Additional Property or to qualify the Property or any Additional Property or any Lots and improvements thereon for mortgage or improvement loans made, insured or guaranteed by a governmental agency or to comply with the requirements of law or regulations of any corporation or agency belonging to, sponsored by, or under the substantial control of the United States Government ar the State of North Carolina, regarding purchase or sale of such Lots and improvements, or mortgage interests therein, as well as any other law or regulation relating to the control of property, including, without limitation, ecological controls, construction standards, aesthetics, and matters affecting the public health, safety and general welfare. A letter from an officio[ of any such corporation or agency, including, without limitation, the Veterans Administration, U. S. Degaetment of Flousing and Urban Development, the Federal I-Iome Loan Mortgage Corporation, Government National Mortgage Corporation, or the Federal National Mortgage Association, requesting or suggesting an amendment necessary to comply with the requirements of such corporation or agency shalt be sufficient evidence of the approval of such corporation or agency, provided that the changes made substantially conform to such request or suggestion. Notwithstanding anything else herein to the contrary, only the Declarant, during the Developer Control Peniod, shall be entitled to amend this Declaration pursuant to this Section 4, F. SECTION S. Annexation of Additional Pro a Dec]aranE may annex to and make a part of the Property any other real Property which Declarant now owns or which Declarant may herealfer acquire or develop {the "Additional Property"). The Additional Property may be annexed to the Property by the Declarant during the Declarant control period without the assent of the Members so long as the Additional Property is developed in accordance with the same general scheme as the other portions of the Property. SECTION 6. Sales Model. So long as the Declarant or its designee shall retain ownership of any _ Lot, it may utilize any such Lot for offices, models or other purposes relating to the development, construction, sale or rental of Lots and dwellings, including the right to place "For Sale" or "For Rcnt"signs on any Lots. The Declarant may assign this limited commercial usage right to any other person or entities as it may choose. ARTICLE VI. USE RESTRICTIONS AND ARCIIITEG I"CJRAL CONTROL SECTION 1. Buiidin and Site Irn rovement, No dwelling, waEl orother structure, including fences, shall 6e commenced, erected, or maintained upon any Lot, nor shall any exterior addition to or change in or alteration therein (including painting or repainting of exterior surfaces) be made until the plans and specifications showing the nature, kind, shape, heights, materials, colors 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 Declarant, or its designee, or, after the sale of all Lots by Declarant, by the Board of Directors of the Association, or by an Architectural Control Committee composed of three (3) or more representatives appointed by the Board. In the event the Declarant, or its designee, or, if applicable, the Board, or the Architectural Control Committee, fails to approve or disapprove such design and location within thirty {30) days after said plans and specifications have been submitted to it, approval will not be required and this Article will be deemed to have been fully complied with, Refusal or approval of any such plans, location or specification may be based upon any ground, including purely aesthetic and environmental considerations, that in the sole and uncontrolled discretion of the Declarant, the Board, or Architectural Control Committee shall be deemed suffacient.One copy of all plans and related data shall be furnished to the Declarant, theBoard, or Architectural Control Committee, as the case maybe, for its records. Neither the Declarant, the Board, nor the Architectural Control Con~unittec shall be responsible for any structural or other defects in plans and specifications submitted to it or any structure erected according to such glans and specifications. SECTION 2. Approval pf Plans. No house plans will be approved unless the proposed house shall have a minimum of I ,700 square feet ofenclosed, heated dwelling area. The term "enclosed, heated dwelling area" as used in the minimum requirements shall be the tote[ enclosed area within a dwelling which is heated by a common heating system; provided, however, that such term does not include garages, terraces, decks, open porches, and like areas. B. Since the establishment of inflexible building setback lines for location of houses on lots tends to force construction of houses drrectly to the side of other homes with detrimental effects on privacy, view, preservation of important trees and other vegetation, ecological and related considerations, no specific setback lines shall be established by this Declaration. In order to assure, however, that the foregoing considerations are given maximum effect, the site and location of any house ar dwelling or other structure upon any tot shall be controlled by and must be approved absolutely by the Declarant, the Board, or the Architectural Controt Committee, as the case may be. C. The exterior ofaIi houses and other structures must be completed within twelve { 12) months after the construction of same shall have eonunenced, except where such completion is impossible or would result in great hardship to the Owner or builder, due to strikes, fires, national emergency or natural calamities. The Owner or any builder agrees that they will comply with the requirements of New Ilanover County Erosion Control Permit #29-07 which requires the installation of a silt fence along the rear lot line during on site construction. D. No structure shall be erected, altered, placed or permitted to remain on any Lot, except one single family dwelling not to exceed two and one-half stories in height. No garage apartments are allowed. E. All service utilities, fuel tanks, and wood piles are to Ire enclosed within a wall or plant screen of a type and size approved by the Declarant, the Board or the Architectural Contra[ Committee, so as to preclude the same from causing an unsightly view from any highway, street or way within the subdivision, or from any other residence within the subdivision. All mail and newspaper boxes shall be uniform in design. Design for mail and newspaper boxes shall be furnished by Declarant to be installed by owner. )~ cnces shall be permitted on any Lot; provided, however, that the design and materials of any fence are approved by the Declarant, the Board, or the Architectural Control Committee, as the case maybe, and provided further, that no fence shall be over six feet in height except on the rear lot line where a fence not exceeding eight (8) feet is allowed and said fence shall not be erected any closer than twenty feet to the front of the house. Clothes lines are not permitted on any Lot, unless they are within a fenced in area and not visible from the front yard. F. Of f street parking far not less than two {2) passengerautomabiles must be provided on each _ Lot prior to the occupancy of any dwelling constructed on said Lot which parking areas and the driveways thereto shall be constructed o£ concrete, brick, asphalt, or turf stone, or any atlrer material approved by Declarant, the Board or Architectural Control Committee. G. Due to aesthetic and ecological and related considerations, the Architectural Review Committee favors retention of significant trees and requires that all landscaping plans and sodding shall be approved by the Architectural Control Committee. SECTION 3. Land Use and Building Type. No Lot shall be used for any purpose except for residential purposes. All numbered Lots are restricted for construction of single family dwellings only. Different and amended. land use restrictions and architectural control guidelines may be established for Additional Property added to the Development by Declarant; provided, however, that no Lot may be used fox other than single family dwellings except pursuant to approval of the Members in accordance with this Declaration. SECTION 4. Nuisances. No noxious or offensive activity shall be carried on upon any Lot, nor shall anything be done thereon which may be or may become an annoyance or nuisance to the neighborhood. There shall not be maintained any plants or animals, nnr device ar thing of any sort whose normal activities ar existence are in any way noxious, dangerous, unsightly, unpleasant or other nature as may diminish ar destroy the enjoyment of other Lats by the Owners thereof. It shall be the responsibility of each Ovv©er to prevent the devetopmeat of any unclean, unsightly or unkept condition of buildings or grounds on the Owner's Lot which would tend to substantially decrease the beauty of the neighborhood as a whole or khe specific area. SECTION S. Lot Maintenance. Each Lot Owner shall keep his Lot free from unsightly growth or objects. In the event the Owner fails to do so, then, after thirty days notice fiom the Architectural Control Committee, the Association or its designee may enter upon the Lot and remove the same at the expense of the Owner, and such entry shall not be deemed a trespass, and in such event a lien shaII arise and be created in favor of the Association for the full amount ofthe cost thereof chargeable to such Lot, including collection costs and such amounts shall be due and payable within thirty (34) days after the Owner is billed therefor. Such lien shall be enforceable by Court proceedings as provided by law for enforcement of liens. SECTION 6. Tem ore Structures. No structure of a temporary character, trailer, basement, tent, shack, garage, bam or other outbuilding shall be used on any Lot any time as a residence either temporarily ar permanently without the written consent of the Association or its designee; provided, however, that this shall not prevent the Declarant, its designees or assigns from maintaining a construction trailer or office on any part of the Development until the construction of dwellings on all Lots is completed. SECTION 7. VehiclesBoats. No boat, motor boat, jet ski, ATV, camper, frailer, motor or mobile homes, tractor/trailer, ar similar type vehicle, shall be permitted to remain on any Lat or on any street at any time, without the written consentofthe Association or its designee. No inoperable vehicle or vehicle without current registration and insurance, will he permitted on any Lot, street or Common Area. The Association shall have the right to have ail such vehicles towed away at the owner's expense. No repairs to any vehicle may 6e made on streets or in driveways but only in garages or other areas and not visible from the street. SECTION 8. Animals. No animals, livestock orpoultry of any kind shall be kept or maintained on any Lot or in any dwelling except that dogs, cats or o#her household pets may be kept or maintained provided that they are not kept or maintained far commercial purposes and provided further that they are not allowed fo run free, are at all times kept properly leashed or under the rule of their owner and do not become a nuisance to the neighborhood. SECTION 9. Staff ry, Television Satellite Dishes and Antennas. No yard statuary nr TV satellite signal receiving dishes are permitted on any Lot and no outside radio or television antennas shall be erected on any Lot or dwelling unit unless and until permission far the same has been granted by the Board of Directors of the Association or its Architectural Cantml Committee. SECTION 1 D. Exterior Lights. All light bulbs or other lights installed in any fixture located on the exterior of any building nr any Lot far the purpose of illumination shall 6e clear, white or non-frost Eights or bulbs. SECTION 11. Landscaping. The Declarant, the Board or the Architectural Control Committee, as the case maybe, may on account of adverse weather conditions ar for other good cause shown permit such landscaping to be done within a period of six months after initial occupancy of the residence. All Landscaping plans are to be approved in writing by the Board of Directors or the Architectural Contro3 Committee SECTION 12. S__gns. No signs shall be permitted on any Lot or in the Common Areas without permission of the Board of Directors, except that a sign conforming to any applicable governmental sign ordinance maybe displayed by the owner of any Lot for the purpose of advertising that said Lnt is for sale, provided the sign shall not be Iarger than 2X3 feet. SECTION 13. Alterations. No person shall undertake, cause, or allow any alteration or construction in or upon any parkion of the Common Areas except with the express written consent of the Assnciation_ SECTION 15. Subdividins. Subject to the provisions of Article V hereof; no Lot shall be subdivided, or its boundary lines changed except with the prior written consent of the Declarant during the period of Declarant control of the Association and thereafter by the Board of Directors of the Association. ARTICLE VII. GENERAL PROVISIONS SECTION 1. Enforcement and Remedies. The Association, or any Owner, shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens and charges now or hereafter imposed by the provisions ofthis Declaration. h'ailure by the Association or by an Owner to enforce any covenant ar restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter. A. Association to Remec~,y, Violation. Ln the event an Owner (or other occupant of a Lot) is in violation of or fails to perform any maintenance or other activities required by this Declaration, the Association's By-taws, Cbaxter or Rules and Regulations, the Executive Board or its designee, after 30-days notice, may enter upon the Lot and remedy the violation or perform the required maintenance or other activities, all at the expense of the Owner, and such entry shall not be deemed a trespass. The full amount of the cost of remedying the violation or performing such maintenance or other activities and sha[E be chargeable to the Lot, including collection costs and reasonable attamcys' fees. Such amounts shall be due and payable within 30 days after Owner is billed. Ifnot paid within said 30 day period, the amount thereof may immediately he added to and become a part of the Annual Assessment levied against said Owner's Lot. th the event that any maintenance activities are necessitated to any Common or Limited Common Elements by the willful act or active or passive negligence of any Owner, his family, guests, invitees or tenants, and 1D the cost of such maintenance, repair or other activity is not fully covered by insurance, then, at the sole discretion of the Board ofDirectors of the Association, the cost of the same shall be the personal obligation of the Owner and ifnat paid to the Association upon demand, may immediately be added to and become a part of the Annual Assessment levied against said Owner's Lot. Notwithstanding the foregoing, the Association shall not have a lien for the east of any maintenance and repairs mentioned in this section ifthe Association is obligated to make such repairs or conduct such maintenance by virtue of yards ar structures being Limited Common Elements. B. Fines. The Association may in accordance wikh the procedures set forth in the Act establish a schedule of andand collect fines for the violation of this Declaration or pf the Association's Arkicles of Incorporation, By-laws or Rules and Regulations. If an Owner does not gay the fine when due, the fine shall immediately become a part ofand be added to the Annual Assessment against the Owner's Lot and maybe enforced by the Association as all other Assessments provided for herein. C. Sus nsion of Services and Privite es. The Association may in accordance with the procedures set forth in the Act suspend all services and privileges provided by the Association to an Owner (other than rights ofaccess to Lots) far anyperiod duringwhich any Assessments against the Owner'sLoY remain unpaid for at least 30 days or far any period that the Owner or the Owner's Lot is otherwise in violation of this Declaration or the Association's charter, By-laws, or Rules and Regulations. SECTION 2. Enforcement of Stomr Water Runoff Re lotions. The following covenants are intended to ensuro ongoing compliance with state management permit number SW8 07{1667, as issued by the Division of Water Quality. These covenants may not be changed or deleted without the consent of the State of North Carolina. 2.1 No more than 5,000 square feet of any lot shall be covered by structures or impervious materials. This allotted amount includes any built-upon area constructed within the lot property boundaries, and that portion of the right-o#=-way between the front lot line and the edge of the pavement. Impervious materials include, asphalt, gravel, concrete, brick, stone, slate, coquina or similar material, and parking areas but do nvt include wood decking or the water surface of swimming pools. 2.2. Swales shall not be tilled in, piped, or altered except as necessary to provide driveway crossings. 2.3 Built-upon area in excessofthepermittedamnuntrequiresstatestnrmwatermanagementpermit modification prior to construction. 2.4. Ail permitted runoff from out parcels or future development shall be directed into the permitted stomzwatcr control system. These connections to the stormwater control system shall perform in a manner that maintains the integrity and performance ofthe system as permitted. This may be accomplished through providing roof drain gutters which drain to the street, grading khe lot to drain to the street, or grading perimeter swales and directing them to the pond or the street. 2.5 The State of North Caznlina is made a beneficiary of these covenants to the extent necessary to maintain compliance with the stormwater management permit. 2.6 These covenants are to run with the land and he bir-ding on alt persons and parties claiming under them. 2.7 Alteration of the drainage as shown on the approved plan may not take place without the concurrence of the Division of Water Quality. 2.8 Lots within CAMA's area of environmental concern may be subject to a reduction in their allowable built upon area due to CAMA regulations. SECTION 3. Sevetabiliri. Invalidation of any one ofthese covenants or restrictions by judgment or court order shall in nn wise affect any other provisions which shalt remain in full force and effect. SECTION 4. Lots Sub~cct to Declaration. All present and future Owners, tenants and occupants of Lots and their guests or Invitees, shall be subject ta, and shall comply with the provisions of the Declaration, and as the Declaration may be amended from time to time. The acceptance ofa deed'af conveyance or the entering into of a tease or the entering into occupancy of any Lot shalt constitute an agreement that the provisions of the Declaration are accepted and ratified by such Owner, tenant or occupant. The covenants and restrictions of this Declaration steal! inure to the benefit of and be enforceable by the Association, ar the I.1