AMENDED
AND RESTATED
DECLARATION OF COVENANTS, CONDITIONS
AND
RESTRICTIONS
OF FOUR LAKES LAND OWNERS ASSOCIATION, INC.,
A
WASHINGTON CORPORATION
THIS AMENDED
AND RESTATED DECLARATION made this 1st day of September, 2006, by
FOUR LAKES LAND OWNERS ASSOCIATION, INC., a
W I T N E S S E T H :
WHEREAS, Association
is the owner of certain real property described as Four Lakes, which has been recorded
as a plat in the records of King County, Washington, and
WHEREAS, the
Association and its Owners will convey certain of the said properties, subject
to certain protective covenants, conditions, restrictions, reservations, liens
and charges as hereinafter set forth,
NOW,
THEREFORE, Association and its Owners hereby declare that the properties
described in ARTICLE II hereof shall be held, sold and conveyed subject to the
following easement, restrictions, reservations, charges, liens, covenants and
conditions, all of which are for the purpose of enhancing and protecting the
value, desirability, and attractiveness of the real property. These easements, restrictions, reservations,
charges, liens, covenants and conditions shall run with the real property and
shall be binding on all parties having or acquiring any right, title or
interest in the described properties or any part thereof, and shall inure to
the benefit of each owner thereof.
ARTICLE I
Section 1.
"Association" shall mean FOUR LAKES LAND OWNERS'
ASSOCIATION, INC., its successors and assigns.
Section 2.
"Properties" shall mean that certain real property
described in Article Three of the Articles of Incorporation, and such additions
as may hereafter be brought within the jurisdiction of the Association.
Section 3. "Common
Properties" shall mean all real property owned by the Association,
including the water system, which shall be held for the use and enjoyment of
all the members, all real property maintained by the Association for the
benefit of the members of the Association (including the water surface and sub-surface of all lakes
and bodies of water included within the Association, and shall not include any
streets or other areas dedicated to public use unless such property is
maintained by the Association by Agreement with the public authority to whom
the property was dedicated. The Common
Properties for
Tract E, and Lot 13, Block 3, of the preliminary
plat of
Section 4. "Lot"
shall mean any plot of ground shown upon any recorded subdivision map, or
Section 5. "Member"
shall mean every person or entity who holds a membership in the
Association.
Section 6. "Owner" shall mean the
record owner, whether one or more persons or entities of the fee simple title
or contract purchaser's interest in any
Section 7. "Declaration" shall mean and refer
to the Declaration of Covenants, Conditions and Restrictions applicable
to the properties recorded or to be recorded in the Office of the King County
Auditor.
Section 8. “Common Expense” shall mean any
expense incurred by the Association or the Board which is for the benefit of or
on behalf of the Association, the Board, or the Owners.
ARTICLE II
Section 1. The real property which is, and shall be, held, transferred, sold, conveyed and occupied subject to this declaration is
located in King County, Washington, and is more specifically described in EXHIBIT
A which is attached to this Declaration and incorporated by reference.
ARTICLE III
ADMINSTRATION AND USE OF COMMON
PROPERTIES
Section 1. Alteration of the
Common Properties. Nothing shall
be altered, or constructed in, or removed from the Common Properties except
upon prior written consent of the Board.
Section 2. Dumping in Common
Properties. No trash, plant or
grass clippings or other debris of any kind shall be dumped, deposited or
placed on any Common Properties.
Section 3. Landscaping and
Fencing. No structures of any
kind, including fences or walls, may be built, placed, or maintained within any
right-of-way or easements within the Association except as approved in writing by
the Board.
Section 4. Other Parcels.
If other parcels are added to the Properties, the owners of other parcels shall
share in the expense of maintaining Common Properties.
Section
5: Roads and Road Easements. Until such time as
ARTICLE IV
MAINTENANCE
OF COMMON PROPERTIES
Section 1. Responsibility
for Maintaining Common Properties. The
Association is responsible for maintaining and preserving the character of the
Common Properties. Owners of the Lots shall be responsible for
their proportionate share of all maintenance expenses for the Common Properties,
unless otherwise exempt.
Section 2. Repair of Common Properties.
Any damage to Common Properties or improvements thereon, including landscape
plantings, sprinkler systems, fences, berms, street lights, etc., by the Owner,
their relatives or guests shall be repaired within one (1) week by the Owner
who caused the area to be damaged. If such repairs are not made timely, the
Association shall make the repair and the Owner will be obliged to immediately
remit funds for the repair. If the Owner fails to make payment for such repairs
within thirty (30) days, the amount for such repairs shall bear interest at the
rate of twelve percent (12%) per annum. The Association shall have all rights
at law or in equity to collect the repair amount plus interest, including the
right to assess the Owner's
Section 3. Management.
Each Owner expressly covenants that the Board may delegate all or any portion
of their management authority to a managing agent, manager or officer of the
Association and may enter into such management contracts or other service
contracts to provide for maintenance and the operation of Common Properties and
any portion thereof. Any management agreement or employment agreement for the
maintenance or management of the Common Properties or any portion thereof shall
be terminable by the Association without cause upon ninety (90) days, written
notice thereof; the term of any such agreement shall not exceed three (3)
years, renewable by agreement of the parties for successive three (3) year
periods. Each Owner is bound to observe the terms and conditions of any such
management agreement or employment contract, all of which shall be made
available for inspection by any Owner on request. Fees applicable to any such
management, employment or service agreement shall be assessed to the
Association and may be an expense assessable to the Owners.
Section 4. Water System.
As part of the Common Properties, the water system is owned and operated
by the Association. The Board shall be
responsible for the maintenance and repair of the water system. All matters concerning the operation,
maintenance, and repair of the water system shall be as set forth in the Bylaws
of the Association. The Board may, in
its discretion, make a separate assessment related to the water system. Any such assessment shall only be levied
against those Lots which make use of or are connected to the water system.
ARTICLE V
Section 1. The Association may,
at any time, annex additional properties and Common Properties to the
Association and/or the Common Properties, and so add to its membership
during such time as the Common Properties are held by the Association
and/or during the existence of the Association.
Section
2. The Association may
annex additional properties to the Association and/or the Common Properties
upon each of the following, as may be necessary:
(a) any
additional properties may be annexed upon the affirmative vote of seventy-five
percent (75%) of the Owners of the Association voting in person or by proxy;
(b) if the
additional property to be annexed would result in a new Owner, such new Owner
shall provide the Board with written consent to be bound by all rules and
regulations of the Association as well as this Declaration;
(c) all
additional properties shall have this Declaration recorded against such
property such that this Declaration shall run with the land;
(d)
if such additional property to be annexed would result in a
new Owner, such Owner and the Association shall share equally all costs related
to the annexation; the costs of the annexation may be added to any special
assessment levied within twelve (12) months of the date of the annexation.
Section 3. Any property annexed
to the Association and/or the Common Properties shall be liable for Assessments
as set forth herein from the date on which this Declaration is recorded against
such property. Where such recordation
takes place on any day other than the first day of the month, any quarterly or
special assessment may be prorated accordingly.
ARTICLE VI
Section 1. Membership. Every Owner of a Lot or Lots subject
to covenants of record to assessment by the Association shall be a member of
the Association: Provided, however, that if any Lot is held jointly by two or
more persons, the several owners of such interest shall designate one of
their number as the "member". The foregoing is not intended to
include persons or entities who hold an interest merely as security for the
performance of an obligation. Membership shall be appurtenant to and may not be
separated from ownership of any
Section 2. Suspension of Membership. During
any period in which a Member shall be in default in the payment of any quarterly,
special, or specific assessment, the voting rights and right to use of the Common
Properties (other than the roads within the Common Properties) by such member
may be suspended by the Board of Trustees until such assessment has been paid. Such rights of a Member may also be suspended,
after notice and hearing, for a period not to exceed sixty (60) days, for violation of any
rules and regulations established by the Board of Trustees governing the
use of the Common Properties or any other default under this Declaration.
Section 3. Voting Rights. No
person shall have more than one (1) membership regardless of the number of Lots
owned or being purchased, and the interest of each Member shall be equal to
that of any other Member, and no Member may acquire any interest which shall
entitle him to any greater voice, vote or authority in the Association than any
other Member. In the case of Lots owned
jointly by two or more persons, only the joint owner designated as the "Member"
pursuant to Section 1 of this Article VI shall be entitled to vote.
In the
event that Nonprofit Corporation Law of the State of Washington as set forth in
title 24, Revised Code of Washington, is changed to permit one member of a
nonprofit corporation to exercise greater voting rights than another member,
voting shall thereafter be according to the number of Lots owned; that is,
members shall be entitled to one vote for each Lot in which they hold the
interest required for membership by Article VI hereof. When more than one person holds such interest
in any Lot, the vote for such Lot shall be exercised as they among themselves
determine, but in no event shall more than one vote be cast with respect to any
ARTICLE VII
Section
1. Common Properties.
Every Owner shall have a right and nonexclusive easement of use, access and
enjoyment in and to the Common Properties, including the water surface
and sub-surface of all lakes and bodies of water included in said plat. No
member shall in any way restrict the use of the surface or sub-surface of the
lakes and/or bodies of water included in said plat by fences, walls, or other
obstructions, irrespective of the ownership of the land upon which the
lakes or bodies of water are located. Such rights are subject to:
(a) this
Declaration, any other applicable covenants, and the terms of any deed
conveying such property to the Association;
(b) the
right of the Board to adopt rules regulating the use and enjoyment of the
Common Properties, including rules limiting the number of guests;
(c) the
right of the Board to suspend an Owner's right to use some or all of the Common
Properties as set fort in this Declaration;
(d) the
right of the Association to transfer, on behalf of the Owners in common, all or
any part of the Common Properties to governmental entities as described herein;
(e) the
right of the Board to impose reasonable membership requirements and charge
reasonable membership admission or other fees for the use of any recreational
facility within the Common Properties; and
(f)
the right of the Association, on behalf of the
Owners, to mortgage or otherwise create a security interest against any or all
of its real or personal property as security for money borrowed or obligations
incurred.
Any Owner
may extend their right of use and enjoyment to the Members of their family,
lessees and social invitees, as applicable, subject to rules of the Board. Such
Members shall notify the secretary in writing of the name of any such delegate.
The rights and privileges of such delegee are subject to
suspension to the same extent as those of the member. An Owner who leases their
Section 2. Rules. The Association, through its Board, may make,
modify and enforce reasonable rules governing the use of the Common Properties,
consistent with the rights and duties established by this Declaration. Such rules shall bind all Owners, occupants,
invitees and licensees until and unless repealed or modified according to the
terms of this Declaration.
Section 3. Enforcement. The Association may impose sanctions for
violations of this Declaration, the Bylaws or rules, including without
limitation reasonable monetary fines, suspension of voting rights and the right
to use any recreational facilities within the Common Properties. In addition, under the Bylaws, the
Association may exercise self-help remedies to cure violations and may suspend
any services it provides to the
Section 4. Rights. The Association may exercise any right or
privilege given to it expressly by this Declaration or the Bylaws or which may
be reasonably implied from, or reasonably necessary to effectuate, any such
right or privilege.
Section 5.
Indemnification. The Association, to the fullest extent
allowed by law, shall indemnify every officer, director and committee member
against all expenses, including counsel fees, reasonably incurred by or imposed
upon such officer, director or committee member in connection with any action,
suit or other proceeding (including settlement of any suit or proceeding, if
approved by the Board) to which he or she may be a party by reason of being or
having been an officer, director or committee member.
The officers, directors and committee members shall not be liable for
any mistake of judgment, except for their own individual misfeasance,
malfeasance, misconduct or bad faith, and shall have no personal liability to
third parties with respect to any contract or action taken by them in good
faith on behalf of the Association. The
Association shall indemnify and hold each such officer, director and committee
member harmless against all liability to others on account of any such
contract, commitment or action. Any
right to indemnification provided for herein shall not be exclusive of any
other rights to which any present or former officer, director or committee
member may be entitled. The Association
shall, as a Common Expense, maintain adequate general liability and officers
and directors liability insurance to fund this obligation, if such insurance is
reasonably available.
Section 6. Dedication of Common Properties. The Association, by Board resolution, may
dedicate or grant easements over portions of the Common Properties on behalf of
the Owners to any local, state or federal government entity, public utility or
private party, without a vote when such conveyance is consistent with the
requirement of King County or other applicable jurisdiction for the development
of the Common Properties, or master plan for the development of the Properties.
ARTICLE VIII
INSURANCE
AND CASUALTY LOSSES
Section 1. Association
Insurance. The Association, acting through its Board or
its duly authorized agent, shall obtain blanket "all-risk" insurance,
if reasonably available, for all insurable improvements on the Common Properties
and other portions of the Common Properties for which it has assumed
responsibility for maintenance, repair and/or replacement. If blanket "all-risk" coverage is
not generally available at reasonable cost, fire and extended coverage
insurance, including coverage for vandalism and malicious mischief, shall be
obtained. The face amount of the policy
shall be sufficient to cover the full replacement cost of insured structures.
The Board shall also
obtain a public liability policy covering the Common Properties, insuring the
Association and its Members for all damage or injury caused by the negligence
of the Association, any of its Members, its employees, agents or contractors
acting on its behalf. If generally
available at reasonable cost, the public liability policy shall have at least a
Two Million Dollar ($2,000,000) combined single limit per occurrence and in the
aggregate. The Association shall also
obtain, if reasonably available, an umbrella policy providing at least Three
Million Dollars ($3,000,000) in additional coverage, bringing total liability
coverage to at least Five Million Dollars ($5,000,000).
Premiums for all
insurance shall be an expenses which shall be included in the Assessment. The policies may contain reasonable
deductibles which shall be disregarded in determining whether the insurance
meets the coverage requirements. In the
event of an insured loss, the deductible shall be treated as a Common
Expense. However, if the Board
reasonably determines, after notice and an opportunity to be heard under the
Bylaws, that the loss resulted from negligence or willful misconduct of one or
more Owners, then the Board may assess the full amount of such deductible as a
charge against such Owner(s) and their
All
insurance coverage obtained by the Board on behalf of the Association shall:
(a) be
written with a company authorized to do business in Washington which holds a B
or better general policyholder's rating, or a financial performance index of 6
or better in the Best's Key Rating Guide, or an A or better rating from
Demotech, Inc., or in the alternative, the highest rating generally available;
(b) be
written in the name of the Association as trustee for the benefited parties
(policies on the Common Properties shall be for the benefit of the Association
and its Members);
(c) vest
in the Board exclusive authority to adjust losses, provided that a Mortgagee
having an interest in such losses may participate in any settlement
negotiations;
(d) provide
that it will not be brought into contribution with insurance purchased by
individual Owners, occupants or their mortgagees;
(e) if
for property insurance, have inflation guard endorsements, if reasonably
available;
(f)
if containing a co-insurance clause, have an agreed
amount endorsement, if reasonably available; and
(g) provide
for a Certificate of Insurance to be furnished to the Association. A copy of such Certificate shall be provided
by the Association to any Member upon request.
The Association may, on
its own or through the services of one or more qualified persons (at least one
of whom must be in the real estate industry and familiar with construction in
the area of King County, Washington), perform for an annual review of the
sufficiency of insurance coverage.
The Board shall use
reasonable efforts to secure insurance policies that provide endorsements:
(a) waiving
subrogation as to any claims against the Association's Board, officers,
employees, the Owners and occupants of Lots and their respective tenants,
servants, agents and guests;
(b) waiving
rights of the insurer to repair and reconstruct instead of paying cash;
(c) providing
that the policy may not be cancelled, invalidated, suspended or subjected to
non-renewal on account of any one or more individual Owners;
(d) providing
that the policy nay not be cancelled, invalidated, suspended or subjected to
non-renewal on account of any curable defect or violation without prior written
demand to the Association to cure the defect or violation and allowance of a
reasonable time to cure;
(e) excluding
individual Owner policies from consideration under any other insurance clause;
and
(f)
providing that the Association will be given at
least thirty (30) days’ prior written notice of any cancellation, substantial
modification or non-renewal.
The Board may also
obtain liability insurance coverage for directors and officers in the amount of
at least Two Million Dollars ($2,000,000), if reasonably available, insuring
the Association and its officers, directors and committee members (former,
present and future) from liability for any actions or decisions for which the
Association would have the duty to indemnify them under this Declaration. The board may obtain additional insurance
coverage which it believes, in its discretion, would be beneficial to the
Board, the Association, and/or the Common
Properties.
Section
2. Owners Insurance. By taking title to a
Section 3. Damage and Destruction.
(a) Immediately
after damage or destruction by fire or other casualty to all or any part of the
Properties covered by insurance written in the name of the Association, the
Board or its agent shall file all claims arising under such insurance and
obtain reliable and detailed estimates of the cost of repair or reconstruction
of the damaged or destroyed property.
Repair or reconstruction, as used in this Section, means repairing or
restoring the property to substantially the condition existing prior to the
damage, with any changes needed to comply with applicable building codes.
(b) Any
damage to the Common Properties shall be repaired or reconstructed unless at
least seventy-five percent (75%) of the total votes in the Association decide
within sixty (60) days after the loss either (a) not to repair or
reconstruct, or (b) to construct alternative improvements. If either the insurance proceeds or reliable,
detailed estimates of the cost of repair or reconstruction are not available to
the Association within the sixty (60) day period, then the period may be
extended for not more than sixty (60) additional days. No Mortgagee shall have the right to
participate in the determination of whether the damage or destruction to the
Common Properties shall be repaired or reconstructed.
(c) If
it is determined that the damage to the Common Properties shall not be repaired
or reconstructed and no alternative improvements on the affected portion of the
Common Properties are authorized, the affected area shall be cleared of all
debris and ruins and thereafter maintained by and according to the rules of the
Association.
Section
4. Disbursement of Proceeds. After paying for repair or reconstruction or
if no repair or reconstruction is made, any remaining insurance proceeds shall
be retained by the Association and placed in the General Fund.
Section
5. Repair and Reconstruction. If the insurance proceeds are insufficient to
pay for repairing or reconstructing the damage to the Common Properties, the
Board may, during and following the completion of any repair or reconstruction
and without membership approval, levy Special or Specific Assessments to pay
for such repair or reconstruction and for the premiums for the applicable
insurance coverage against any Owner(s) responsible for the damage. If no Owner is responsible for the damage,
then the Board may levy such Special Assessment to all Owners. The Board shall have the exclusive right to
deal with all venders, contractors or subcontractors in connection with the
performance of any such repair and/or reconstruction work.
ARTICLE
IX
Section 1. Creation of the Lien and Personal
Obligation of Assessments. By the
Declaration, each Owner is
deemed to covenant and agree to pay the Association, for each
Section 2. Purpose of Assessment. The
assessments shall be used exclusively for the purpose of promoting the
recreation, health, safety and welfare of residents of the Association,
including without limitation, the construction, establishment, improvement,
repair and maintenance of the Common Properties and services and
facilities related to the use and enjoyment of the Common Properties, the
payment of taxes and insurance on the Common Properties, and the improvement
and maintenance of a water system and planting areas on the streets located
within the subdivision, and the maintenance of roads and drainage system within
said subdivision.
Section 3. Amount of the Quarterly Assessments. The amount of the quarterly assessment shall
be as follows:
(a) Lot
Assessment: Each Owner shall pay to the Association a quarterly assessment of Forty
One Dollars and 14 cents ($41.14) per Lot as it may be increased or decreased
as provided herein;
(b)
Water Assessment:
Each Owner connected to or who makes use of, the Association water
system shall pay a quarterly assessment of Thirty Four Dollars and Seventy
Three Cents ($34.73) per
Section 4. Increase in Quarterly Assessments.
(a)
From and after September 1st, 2006, the
amount of the quarterly assessment may be increased effective January
1st of each year without a vote of the membership, by not more
than that amount which reflects the increase, if any, of the U. S. Bureau of
Labor Statistics Consumer Price Index (calculated on the base period: 1982-1984
equals 100) for Seattle, Washington, for "Urban Wage Earners and
Clerical Workers - All Items", for the preceding month of August.
Said index established the numerical rating for
(b) The maximum assessment, on an annualized basis, may be
increased by more than ten percent (10%) only if two-thirds (2/3) of the
members of the Association, who are voting in person, proxy, or by mail at a
meeting duly called for this purpose, consent to such an increase.
Section 5. Special Assessments for Capital Improvements. In addition to the quarterly assessments authorized above, the Association may levy special assessments for capital improvements upon the Common Properties, or as otherwise provided herein. Any such levy by the Association shall be for the pur