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HomeMy WebLinkAbout20260120_PJA26-0057_Updated CCR's Return Address: Katy Sweeden Dimension Law Group 631 Strander Blvd, Bldg. A, Suite G Tukwila, WA 98188 (206) 973-3500 Please print or type information WASHINGTON STATE RECORDER'S Cover Sheet (RCW 65.04) Document Title(s) (or transactions contained therein): Declaration of Covenants, Conditions, and Restrictions for Jensen 4, a City of Arlington Unit Lot Subdivision Reference Number(s) of Document(s)Assigned or Released: [ULS RECORDING NO. GOES HERE] Grantor(s) (Last name, first name, initials): 1. Corstone Contractors LLC 2. 3. Grantee(s) (Last name first, then first name and initials): 1. Corstone Contractors LLC 2. 3. Legal Description (abbreviated: i.e. lot, block, plat or Section, township, range): Unit Lots 1, 2, 3, and 4, and Tracts 997, 998, and 999, through of Jensen 4, a City of Arlington Unit Lot Subdivision as recorded under Recording No. Additional legal is on page 2 of document. Assessor's Property Tax Parcel/Account Number(s) ® Not yet assigned 008938-000-005-00 The Auditor/Recorder will rely on the information provided on the form. The staff will not read the document to verify the accuracy or completeness of the indexing information provided herein. 25577D001-CC&Rs Page 1 of 16 DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS, AND EASEMENTS FOR CITY OF JENSEN 4, A CITY OF ARLINGTON UNIT LOT SUBDIVISION This community is not subject to the full provisions of RCW 64.90, the Washington Uniform Common Interest Ownership Act (see Article 2). This Declaration of Covenants, Conditions, Restrictions, and Easements for Jensen 4, a City of Arlington Unit Lot Subdivision (the "Declaration") is made by Corstone Contractors LLC, a Washington limited liability company (the "Declarant"), under the terms, conditions, and provisions and for the purposes set forth herein. RECITALS WHEREAS, Declarant is the owner of that certain real property legally described as follows (collectively the "Property"): Unit Lots 1, 2, 3, and 4, and Tracts 997, 998, and 999, of Jensen 4, a City of Arlington Unit Lot Subdivision as recorded under Recording No. records of Snohomish County, Washington; Situate in Arlington, Snohomish County, Washington. AND WHEREAS, the City of Arlington has approved Jensen 4, a City of Arlington Unit Lot Subdivision for the Property, which is recorded under Snohomish County Recording No. (the"Subdivision"); AND WHEREAS, Declarant has constructed a residential development on the Property (the "Community") under City of Arlington permits; AND WHEREAS, all Lots have shared lot lines with common walls, as shown on the Subdivision; AND WHEREAS, Declarant desires to establish an Agreement and other Covenants, Conditions, Restrictions, and Easements to run with the Property to govern maintenance, use, and other matters regarding the Lots within the Community for the benefit of the Owners of the Lots; NOW, THEREFORE, Declarant agrees and covenants that the Property and all improvements now existing or hereafter constructed thereon will be held, leased, sold, and conveyed subject to and burdened by the following covenants, conditions, restrictions, reservations, limitations, liens, and easements, all of which are for the purposes of enhancing and protecting the value, desirability, and attractiveness of the Property for the benefit of all the Owners thereof and their respective heirs, successors, grantees, and assigns. All provisions of this Declaration shall be binding upon all parties having or acquiring any right, title, or interest in the Property or any portion thereof and shall inure to the benefit of each Owner thereof and to the benefit of the Jensen Farm Townhomes Homeowners' Association (the "Association"), and shall otherwise in all respects be regarded as covenants running with the land. ARTICLE 1 - DEFINITIONS 1.1. "Association" shall mean and refer to the Jensen Farm Townhomes Homeowners' Association, a Washington nonprofit miscellaneous and mutual corporation, and its successors and assigns. 1.2. "Common Areas" shall mean and refer to those areas or improvements owned or maintained by the Association for the benefit of the Owners, as further defined in Article 9 herein. 25577D001-CC&Rs Page 2 of 16 1.3. "Common Expenses" shall mean and refer to all sums lawfully assessed against Owners by the Association for expenses of administration, maintenance, repair, or replacement of the Common Areas, which costs are further defined in Article 9 herein. 1.4. "Declarant Control Period" shall mean and refer to the period of time from the date of recording of this Declaration until the earliest of: (a) the date thirty (30) days after Declarant has transferred title for all Lots to a person who intends to use the Lot for his or her own residence; (b) the date on which Declarant elects, in writing provided to all Owners, to permanently relinquish all of Declarant's authority under this Declaration; or(c) the date two (2) years from the date of recording this Declaration. A partial delegation of authority by Declarant of any of its management duties described in the Declaration shall not terminate the Declarant Control Period. 1.5. "Governing Documents" shall mean and refer to this Declaration and the Articles of Incorporation, Bylaws, and rules and regulations of the Association, including all supplements and amendments thereto. 1.6. "Lot" shall mean and refer to any legally segmented and alienable portion of the Property created through subdivision or any other legal process for dividing land and subjected to the Declaration by an appropriate recording, with the exception of dedicated rights-of-way and Tracts. 1.7. "Owner" shall mean and refer to the record owner of a fee interest in any Lot or Tract, including Declarant but excluding mortgagees or other persons or entities having such interest merely as security for the performance of any obligation. When one or more persons or entities own a Lot, all such individuals or entities owning the Lot will be considered together as one Owner, jointly and severally liable and responsible for all purposes under this Declaration. Purchasers or assignees under recorded real estate contracts shall be deemed Owners as against their respective sellers or assignors. 1.8. "Party Wall" shall mean and refer to any of the walls built on the Lot lines separating any of the Lots. The term "Party Wall" includes all components of and within that wall including, but not limited to, framing, joists, insulation, soundproofing, pipes, lines, wires, conduits, other utility infrastructure, and other components as originally constructed; all components below that wall including, but not limited to, the footings and other components as originally constructed and the supporting ground; all components above that wall including, but not limited to, the rafters, the roof, the parapet cap, and other components as originally constructed; and all components on the sides or exteriors of that wall including, but not limited to, siding, trim, and other components as originally constructed. 1.9. "Party Wall Adjoining Lots" shall mean and refer to each pair of Lots that share a Party Wall. When used in reference to a particular Owner, it refers to the Party Wall Adjoining Lot owned by that Owner. If a Lot has two or more Party Walls, the term "Party Wall Adjoining Lots" refers to the two Lots that share a particular Party Wall. 1.10. "Tract" shall mean and refer to any legally segmented and alienable portion of the Property created through subdivision or any other legal process for dividing land and subjected to this Declaration by an appropriate recording, with the exception of Lots and dedicated rights-of-way. 1.11. "Reserve Account" shall mean and refer to a reserve fund, if any, for major maintenance, repair, or replacement of the Common Areas and any improvements thereon. Any such Reserve Account shall be deposited with a banking institution in the name of the Association. The Reserve Account shall be expended only for the purpose of effecting the major maintenance, repair, or replacement of the Common Areas and any improvements and community facilities thereon, and for equipment replacement, and for operating contingencies of a nonrecurring nature. The Board is responsible for administering the Reserve Account. The Association may establish such other reserves for such other purposes as it may from time to time consider to be necessary or appropriate. The 25577D001-CC&Rs Page 3 of 16 proportional interest of any Owner in any such reserves shall be considered an appurtenance of his Lot and shall not be separately withdrawn, assigned, or transferred from the Lot to which it appertains. 1.12. "Reserve Component" shall mean and refer to a Common Area for which the cost of maintenance, repair, or replacement is infrequent, significant, and impractical to include in the annual budget of the Association. 1.13. "Reserve Study Professional" shall mean and refer to an independent person who is suitably qualified by knowledge, skill, experience, training, or education to prepare a reserve study in accordance with RCW 64.90.545 and 64.90.550. 1.14. 'WUCIOX shall mean and refer to the Washington Uniform Common Interest Ownership Act (RCW 64.90). ARTICLE 2 - LIMITED WUCIOA APPLICABILITY 2.1. Declarant does not elect to subject the Community to the entire WUCIOA. 2.2. The Community is not subject to any Development Rights as defined in WUCIOA, contains no more than twelve (12) Lots, and the average annual assessment imposed by the Association as provided herein, exclusive of user fees, insurance premiums, and pass-through fees for services paid by the Association, does not exceed Three Hundred Dollars ($300) per Lot, as adjusted pursuant to RCW 64.90.065. Therefore, only RCW 64.90.020, 64.90.025, and 64.90.030 of WUCIOA apply to the Community. The annual average assessment imposed by the Association, as adjusted pursuant to RCW 64.90.065, may not be increased to an amount greater than Three Hundred Dollars ($300) per lot, as adjusted pursuant to RCW 64.90.065, prior to the transition meeting without the consent Lot Owners other than Declarant holding ninety percent (90%) of the votes in the Association. ARTICLE 3 - DECLARATION RUNNING WITH THE LAND 3.1. This Declaration, and all terms, provisions, and conditions herein shall be operative as a set of covenants running with the Property, or equitable servitudes, and are binding upon and inure to the benefit of Declarant and all subsequent Owners. Unless otherwise specified, the easements granted in this Declaration are permanent easements appurtenant. Each Owner, by taking title to a Lot, hereby agrees that the Owner's guests and tenants, and all persons and entities claiming by, through, or under that Owner, to be bound by and to comply with all terms, provisions, conditions, and easements in this Declaration. ARTICLE 4 - LOT BOUNDARIES 4.1. The Lot boundaries are as shown on the Subdivision. 4.2. Any shared walls or roofs shall be deemed Party Walls as defined herein. 4.3. Where walls are designated as boundaries of a Lot, all lath, furring, wallboard, plasterboard, plaster, paneling, tiles, wallpaper, paint, and any other materials constituting any part of the finished surfaces thereof are a part of the Lot into which they face. All other portions of walls, floors, and roofs are party wall elements allocated proportionately to the Lots they serve. 25577D001-CC&Rs Page 4 of 16 4.4. If any chute, flue, duct, wire, conduit, bearing wall, bearing column, or any other fixture lies partially within and partially outside the designated boundaries of a Lot, any portion thereof serving only that Lot is allocated solely to that Lot, and any portion thereof serving more than one Lot is allocated proportionately to the Lots it serves. 4.5. Any fireplaces, shutters, awnings, window boxes, doorsteps, stoops, porches, balconies, decks, patios, and all exterior doors and windows or other fixtures designed to serve a single Lot, but located outside the Lot's boundaries, are allocated exclusively to that Lot. ARTICLE 5 - PARTY WALLS 5.1. The Party Walls as built as part of the original construction of the Community are intended to serve as Party Walls, also referred to as Common Walls on the Subdivision, for the Lots. 5.2. Nothing may be done that will lessen or impair the structural support and integrity of the Party Walls. 5.3. Each Owner of a Party Wall Adjoining Lot shall have the right to joint use, with the Owner of the other Party Wall Adjoining Lot, of the Party Wall. Except as otherwise expressly permitted in this Declaration, no windows, chimney flues, or other openings may be made in a Party Wall, and no Owner may undertake or permit any act that impairs the use of the Party Wall by the home on the other Party Wall Adjoining Lot. 5.4. Except as otherwise provided in this Declaration, the Owners of Party Wall Adjoining Lots shall equally share the cost of all reasonably necessary maintenance and repair of a Party Wall. If a Party Wall is damaged or destroyed by fire or other casualty or other cause, the Owners of the Party Wall Adjoining Lots shall, except as otherwise provided in this Declaration, equally share the cost to repair or reconstruct the Party Wall to essentially its condition prior to such damage or destruction. The Owner of each Party Wall Adjoining Lot shall maintain the home on that Lot and take all other steps reasonably necessary to protect the Party Wall from damage or deterioration from any cause, whether sudden or cumulative, including, but not limited to, water or moisture intrusion, damage from weather conditions, dry rot, and infestation by vermin or insects. 5.5. The Owner of each Party Wall Adjoining Lot shall have the right to expose and gain access to the interior of the Party Wall for the purpose of maintaining, repairing, restoring, reconstructing, rebuilding, and altering any component of that Party Wall (collectively the "Work"), subject to the following provisions, conditions, and requirements: 5.5.1. Except as otherwise established in this Declaration, all Work shall be done at the sole cost and responsibility of that Owner. 5.5.2. No Work may in any way negatively affect the other Party Wall Adjoining Lot or the home thereon by removing soundproofing or insulation, altering its utility service, or otherwise. 5.5.3. No Work may in any way impair the structural integrity or functioning of the Party Wall. 5.5.4. That Owner shall be responsible for any damage in any way arising out of and/or related to the Work. 5.6. The Owner of a Party Wall Adjoining Lot (the "Indemnifying Owner") shall indemnify and hold harmless the Owner of the other Party Wall Adjoining Lot from and against any and all liability, suits, costs, and expenses (including attorneys' fees) in any way arising out of any lien or claim of 25577D001-CC&Rs Page 5 of 16 lien asserted and/or filed related to any repair, maintenance, reconstruction, alteration, or restoration for which the Indemnifying Owner is responsible under this Declaration, or otherwise. 5.7. Notwithstanding any other provision of this Declaration, if the need for maintenance, repair, replacement, restoration, and/or reconstruction of a Party Wall results from the intentional acts or negligence of an Owner or an occupant of that Owner's Lot, or the licensee or invitee of that Owner or occupant, then that Owner shall promptly maintain, repair, replace, restore, and/or reconstruct the Party Wall and is solely responsible for all costs and damages related to and/or arising out of that intentional act or negligence. ARTICLE 6 - EASEMENTS FOR USE, MAINTENANCE, AND INADVERTENT ENCROACHMENTS 6.1. Declarant hereby grants, conveys, and declares easements for the benefit of each Owner over, under, upon, and through the location of the mailboxes and address signs as initially constructed by Declarant. Declarant further hereby grants, conveys, and declares easements appurtenant over, under, upon, and through each Lot to the Owner of each other Lot and to use, maintain, repair, and reconstruct wires, pipes, vaults, lines, drains, tanks, catch basins, cleanouts, conduits, and other appurtenances and facilities for electrical service, natural gas, telephone, cable television and telecommunication, water, stormwater, sewer, and other utilities and communication facilities as constructed as part of the Community. Each Owner shall have reasonable access to each other Lot in order to effect the maintenance, repair, and reconstruction rights granted herein, and each such Owner shall be responsible for repairing any damage or disruption done to the other Lot and the improvements thereon resulting from such maintenance, repair, or reconstruction and/or access to effect the same. Each Owner utilizing these easements and entering another Lot shall leave the other Lot in as good or better condition than it was in prior to said entry. 6.2. Declarant hereby declares and grants easements over, under, upon, and through each Lot to the Owners of each of the other Lots to maintain any encroachment on any Lot resulting from and/or arising as a result of the original construction of the buildings, staircases, walkways, or other improvements within the Community; engineering or survey errors; settlement or shifting of any building or other improvements on any Lot; building projections or overhangs; or any similar cause. This easement shall last so long as the encroachment lasts including any reconstruction or repair of any such encroaching improvement. The encroachments for which easements are granted in this Section shall not be construed as constituting encumbrances affecting the marketability of title to any Lot. In addition, encroachments of building footprints, upper story projections, and other building components into access or other easements which results from design elements, engineering or surveying errors, errors in the original construction of the buildings, settlement or shifting of any building, or other causes do not constitute a violation of the rights of any Owner or impair the marketability of title to any Lot and do not give rise to a cause of action for removal of those encroachments or for other relief. Those encroachments may remain, and the buildings may be reconstructed and repaired to include those encroachments. ARTICLE 7 -COVENANTS 7.1. The Lots may be used for residential purposes only, but including home occupation or business uses permitted by applicable law. The home on each Lot may not be subdivided in any manner. All rentals must be by written lease or rental agreement and include essentially the following language: "Tenant understands that the premises are subject to a Declaration of Covenants, Conditions, Restrictions, and Easements, which is attached hereto. Tenant agrees to, in all respects, abide by and conform to all requirements of that Declaration of Covenants, Conditions, Restrictions, and Easements, and any applicable supplements, addendums, or amendments." A complete copy of the Declaration must be included as an exhibit to the lease or 25577D001-CC&Rs Page 6 of 16 rental agreement. Each Owner renting or leasing a Lot shall be responsible and liable hereunder for all actions of the Tenants of said Lot. Any enforcement of the Covenants based on the actions of a Tenant shall run against the Owner of said Lot. 7.2. An Owner may not engage in nor permit any activity on a Lot that would constitute a nuisance or unreasonably interfere with the rights of any Owner and /or occupant of another Lot. 7.3. Except as otherwise provided herein, each Owner shall maintain that Owner's Lot and the home, landscaping, fencing, and other improvements and features on that Owner's Lot in a clean and sanitary condition, free of rodents and pests, and in good order, condition, and repair at all times. In addition, except as otherwise provided herein, each Owner shall timely perform all painting/staining, caulking, landscaping, maintenance, and other work reasonably necessary from time to time to maintain the attractive and orderly appearance of the exterior of the home, landscaping, and other improvements and features on that Owner's Lot. 7.4. Each Owner shall maintain the roof on the home on that Owner's Lot. In the event that the Owner intends to repair or replace the roof, that Owner shall use materials similar in type, quality, and color to the original roof, except as agreed to by the Owners of all of the Lots. In the event of a total replacement of the roof on the homes on the Party Wall Adjoining Lots, the cost of that roof replacement shall be shared by the Owners of such Lots in proportion to each Owner's roof area. Unless another mechanism is agreed to by the Owners of the Party Wall Adjoining Lots, at least three (3) itemized bids for such work shall be obtained from reputable, qualified, licensed contractors doing business in Snohomish County, Washington, and those Owners shall select the lowest responsive bidder and jointly contract with the selected contractor. 7.5. Each Owner shall maintain the exterior siding, trim, caulking, windows, and doors on the home on that Owner's Lot. In the event that the Owner intends to repaint/re-stain, repair, or replace the exterior siding, trim, caulking, windows, or doors, that Owner shall use materials similar in type, quality, and color to the original exterior siding, trim, windows, and doors, except as agreed to by the Owners of all of the Lots. In the event of a total replacement of the exterior siding and/or total repainting/re-staining of the exterior siding, trim, caulking, windows, or doors of the homes on the Party Wall Adjoining Lots, the cost of that replacement or repainting/re-staining shall be shared by the Owners of such Lots in proportion to each Owner's exterior wall area. Unless another mechanism is agreed to by the Owners of the Party Wall Adjoining Lots, at least three (3) itemized bids for such work shall be obtained from reputable, qualified, licensed contractors doing business in Snohomish County, Washington, and those Owners shall select the lowest responsive bidder and jointly contract with the selected contractor. 7.6. There is a domestic water backflow prevention valve located on the water service line for each Lot. The Owner of each Lot shall coordinate with an appropriately licensed and qualified professional to conduct formal testing and inspection of the backflow prevention valve on that Owner's Lot as may be required by the City of Arlington or other authority. All such testing and inspection shall be at that Owner's expense. 7.7. Each Owner shall coordinate with an appropriately licensed and qualified professional to conduct formal testing and inspection of the fire sprinkler system interior to that Owner's Lot, if any, as may be required by the City of Arlington or other authority. All such testing and inspection shall be at that Owner's expense. 7.8. There is a fire flow backflow prevention valve located on the fire sprinkler water line for each Lot. The Owner of each Lot shall coordinate with an appropriately licensed and qualified professional to conduct formal testing and inspection of the backflow prevention valve on that Owner's Lot as may be required by the City of Arlington or other authority. All such testing and inspection shall be at that Owner's expense. 25577D001-CC&Rs Page 7 of 16 7.9. Each Lot contains within its own boundary an individual refuse and recycling area as shown on the Subdivision and/or approved building plans. No Lot or any portion thereof shall be used as a dumping ground for trash or rubbish of any kind. All garbage, trash, yard and food waste, household recyclables, and other similar debris and discardables shall be placed in appropriate sanitary containers and stored within the individual refuse and recycling areas. Owners are responsible for moving their respective garbage, recycling, and food/yard waste containers to an appropriate pickup location at the frontage curb during a 24-hour period around the pickup date. 7.10. Parking stalls within the Property are designated for exclusive use by the respective Lots on which they are located as shown on the Subdivision and/or approved building plans. No vehicle or other item may be placed or stored in a way that would limit, block, or materially interfere with the right of each Owner and/or occupant to access their Lot's designated parking stall or to prevent the use of that parking stall for its intended purposes. In addition, no camper, trailer, motor home, boat, other recreational vehicle, or inoperable vehicle may be parked outside on any Lot or in any exterior parking stall, except this shall not prohibit temporary (less than 48 hours) parking of same. 7.11. Each garage contains a conduit for an electric vehicle charging station, which conduit is connected to the power meter for the Lot owned by the Owner benefitting from the garage. The Owner benefitting from each conduit shall have the right, at that Owner's sole expense, to install an electric vehicle charging station via said conduit. 7.12. Each Owner shall be solely responsible for the full cost of the electrical charges and the full cost of maintenance, repair, or replacement of the exterior lighting on that Owner's Lot, and is not entitled to reimbursement from any other Owner, person, or entity. Each Owner shall timely pay the electrical charges for that Owner's Lot so that the exterior lighting remains energized at all times. 7.13. Each Owner of a Lot benefitting from the posting of an address sign is responsible for its maintenance and repair costs. 7.14. Each Owner benefiting from a private/detached mailbox shall be solely responsible for the cost of maintenance, repair, and replacement of that Owner's mailbox. Each Owner benefiting from any shared mailbox facility shall share equally in the cost of maintenance, repair, and replacement of the common appurtenances to the shared mailbox facility, but shall be solely responsible for the cost of maintenance, repair, and replacement of that Owner's individual portion of the mailbox facility. Each Owner benefiting from any common/shared mailbox facility shall cooperate in the maintenance, repair, or replacement of the mailbox facility. 7.15. The cost of maintenance, repair, and reconstruction of paved access/driveway/drive aisle areas within the Property used in common shall be maintained by the Association. 7.16. Declarant may construct fencing on the Property. These fences may not necessarily be built on property lines, and are not intended to define property lines or ownership. The Lots and Tracts are defined by the Subdivision. Each Owner acknowledges that any fencing installed by Declarant as part of its construction of the Community shall not be moved or removed except pursuant to any relevant regulations and by an instrument signed by more than fifty percent (50%) of the Owners of Lots within the Property. All costs related to maintenance, repair, and replacement of all fencing within the Property shall be shared by the Owners who benefit therefrom, except: (a)when such cost is caused by a specific Owner or that Owner's family, guest, tenant, agent, workman, contractor, or other licensee or invitee, then such cost shall be borne solely by that Owner; (b) all Owners shall share equally in the cost of maintenance, repair, and replacement of any perimeter fencing along the external boundaries of the Property; and (c) each Owner shall be solely responsible for all costs related to 25577D001-CC&Rs Page 8 of 16 maintenance, repair, and replacement of the fencing, including gates, latch, etc. for that Owner's refuse/recycling area. Where a fence is located between Lot(s)/Tract(s) ("Common Fence"), the Owners of both adjoining Lot(s)/Tract(s) shall be considered as owners of the Common Fence, and shall share equally in the cost of any maintenance, repair, painting, staining, or replacement of the Common Fence, except when such cost is the result of damage caused by an Owner or Owner's pet, family, guest, tenant, agent, workman, contractor, or other licensee or invitee, in which case such cost shall be borne solely by such Owner. Owners of Common Fences shall have the right to enter each other's adjoining property on a temporary basis for purposes of such maintenance, repair, and replacement activity, provided that the Owner seeking to exercise this right of entry shall, if practicable, give two (2) weeks' written notice to the Owner of the adjoining property, and further provided that no damage to the adjoining property shall be permitted, and the adjoining property shall be restored to a condition reasonably equivalent to its condition prior to such entry as soon as such maintenance, repair, or replacement activity is completed. Any fence constructed between Lot(s)/Tract(s) without the participation of both adjoining Owners shall not be considered a Common Fence, and shall be maintained, repaired, and replaced solely by the Owner who constructed the fence. 7.17. In accordance with the governing jurisdiction's stormwater code and National Pollutant Discharge Elimination System regulations, as currently adopted or thereafter amended, the Owners and/or the Association may install bio retention planter(s), also known as rain gardens, for the management and treatment of stormwater collection and/or stormwater discharge within the Property. Each Owner shall pay for and maintain any bio retention planter(s) located within their Lot. Except as otherwise provided in this Declaration, the Owners of Adjoining Lots sharing bio retention planter(s) shall equally share the costs of all reasonably necessary maintenance and repair of the bio retention planter(s). 7.18. No signs, other than "For Sale", "For Rent", and political signs may be placed or displayed on any Lot where the sign is visible outside the Lot. 7.19. The only animals that may be kept on any Lot are dogs, cats, and other similar household pets (collectively"Permitted Pets"). Under no circumstances may Permitted Pets be kept, bred, or used on any Lot for any commercial purpose, nor in any number that creates a nuisance. Permitted Pets may not be continuously kept outside on any Lot, and Permitted Pets must be continuously controlled and kept in a manner that does not, through noise, odor, aggressive conduct, or otherwise, interfere with the rights of other Owners or those Owners' family members, guests, tenants, invitees, and licensees. 7.20. No item may be placed or stored in any way that would limit or block access for the use and purpose to, or through, the Access/Utility Tract 999 for ingress, egress, pedestrian access, emergency access, and utilities. Said Tract is described and graphically illustrated on the Subdivision and in other documents recorded in the public records of Snohomish County, Washington. No action shall be taken that will materially interfere with the right of any benefited Owners to use said Tract for its intended purposes. 7.21. Each Owner shall continuously maintain property insurance, liability insurance, and such other insurance as the Board deems advisable. All insurance shall be obtained from insurance carriers that are generally acceptable for similar residential properties and authorized to do business in the State of Washington. All such insurance policies shall provide that coverage may not be cancelled or substantially modified (including cancellation for nonpayment of premium) without at least thirty 25577D001-CC&Rs Page 9 of 16 (30) days' prior written notice to the Association. Each Owner shall provide the Association with proof of insurance upon the request of the Association. 7.21.1. The property insurance maintained by each Owner shall, at the minimum, provide all risk or special cause of loss coverage in an amount equal to the full replacement cost of all fixtures and improvements located on that Owner's Lot, including all portions of any structure located thereon, with such reasonable deductibles and exclusions from coverage as the Board may from time to time approve or by rule or regulation establish. 7.21.2. The liability insurance coverage maintained by each Owner shall cover liability of the insureds for property damage and bodily injury and death of persons arising out of the operation, maintenance, and use of the Lot and/or improvements located on the Lot, and such other risks as are customarily covered for similar residential properties with a limit of liability of at least replacement value of the improvements located on the Lot, including all portions of any structure located thereon. 7.22. Any portion of the Lot for which insurance is required which is damaged or destroyed shall be repaired or replaced promptly by the Owner unless repair or replacement would be illegal under any state or local health safety statute or ordinance. ARTICLE 8 - HOMEOWNERS' ASSOCIATION 8.1. Declarant has established the Jensen Farm Townhomes Homeowners' Association (the "Association")for the Community. 8.2. Membership in the Association shall be comprised of each of the Owners of Lots within the Community. Every Owner shall be a member of the Association. When an Owner conveys, or otherwise transfers ownership of a Lot within the Community, membership in the Association shall automatically transfer to the new Owner. 8.3. The Association's Board of Directors and/or the Owners shall adopt bylaws or rules as may be necessary or beneficial for the management of the Association and for the Common Expenses as are defined below, provided the same are not inconsistent with this Declaration. 8.4. The Association shall have the authority as outlined in the Governing Documents, and any other authority the Association's Board of Directors and/or the Owners may vest in the Association. 8.5. In accordance with the procedures set forth below, during the last calendar quarter of each year, the Association shall adopt and ratify a budget to pay Association expenses for the next year, including, but not limited to, all costs related to: Association management and administration; the Common Expenses; services furnished by or to the Association; taxes; liability and other insurance; utilities and other services; and funding all reserves (if any) established by the Association. 8.6. Within thirty (30) days after adoption of any proposed budget for the Association, the Board must provide a copy of the budget to all Lot Owners and must set a date for a meeting of the Owners to consider ratification of the budget not less than fourteen (14) nor more than fifty (50) days after providing the budget. Unless at that meeting the Owners of Lots to which a majority of the votes in the Association are allocated reject the budget, the budget and the assessments against the Lots included in the budget are ratified, whether or not a quorum is present. If the proposed budget is rejected or the required notice is not given, the periodic budget last ratified by the Owners continues until the Owners ratify a subsequent budget proposed by the Board. 8.7. The budget must include: 25577D001-CC&Rs Page 10 of 16 a. The projected income to the Association by category; b. The projected Common Expenses and those specially allocated expenses that are subject to being budgeted, both by category; c. The amount of the assessments per Lot and the date the assessments are due; d. The current amount of regular assessments budgeted for contribution to the Reserve Account; e. A statement of whether the Association has a reserve study that meets the requirements of RCW 64.90.550 and, if so, the extent to which the budget meets or deviates from the recommendations of that reserve study; and f. The current deficiency or surplus in reserve funding expressed on a per Lot basis. 8.8. The funds required to meet the Association's annual expenses shall be raised from an annual general assessment against each Lot as provided herein. 8.9. During the Declarant Control Period, each Lot owned by Declarant shall be entitled to five (5)votes, and each Lot owned by an Owner other than Declarant shall be entitled to one (1) vote. Upon expiration of the Declarant Control Period, the total number of votes in the Association shall be equal to the number of Lots subject to this Declaration, and each Lot shall be entitled to one (1) vote. 8.10. Except as provided in Section 8.9 above, the Owner of each Lot shall be entitled to cast one vote in any actions requiring a vote by Association members. When more than one person or entity holds a fee interest in any Lot, the vote for that Lot shall be cast as the Owners of that Lot determine amongst themselves as evidenced by written proxy presented at each vote. In no event shall more than one vote be cast with respect to any Lot. 8.11. The Association, its employees, agents, and contractors shall have a perpetual, nonexclusive easement over, under, and across the Property with right of immediate entry and continued access for the construction, improvement, maintenance, repair, and reconstruction of the Common Areas. 8.12. Unless the Association determines to use another mechanism, the Association shall maintain a checking account with sufficient funds to pay for the annual Common Expenses as established in the annual budget of the Association. Unless the Owners unanimously agree, the Association shall not accumulate reserves or other funds in excess of the anticipated annual Common Expenses, but any funds remaining in the Association after the annual Common Expenses are paid shall be held by the Association for future Common Expenses. ARTICLE 9 - COMMON AREAS AND COMMON EXPENSES 9.1. The Association shall manage and control the Common Areas for the benefit of the Owners. Except as otherwise limited by law, prior restriction, or the restrictions set forth in this Declaration, each Owner shall have a non-exclusive right to use and enjoyment of the Common Areas. Common Areas shall mean and refer to those areas or improvements owned or maintained by the Association for the benefit of the Owners, including: 9.1.1. Tracts as follows: Tracts 997 and 998 are both open space/stormwater tracts. 25577D001-CC&Rs Page 11 of 16 Tract 999 is an access/utility tract. 9.1.2. Fencing on the perimeters of Tracts 997, 998, and 999, if any. 9.1.3. The landscaping in the right-of-way of Jensen Farm Lane along the Property boundary shall be maintained in a healthy and attractive state. 9.1.4. All property owned and maintained in common by the Association, including real property and the improvements located thereon. 9.1.5. Any other areas or improvements that the Association's Board of Directors and/or the Owners, as appropriate, agree to treat as a Common Area. 9.2. The Association shall be responsible for paying for and making decisions with respect to the Common Expenses, which shall be comprised of the following: 9.2.1. Any and all expenses as may be reasonably necessary or appropriate related to ownership and/or management of the Common Areas, including, but not limited to, insurance, taxes, operation, inspection, annual or other testing, alteration, repair, maintenance, upgrade, reconstruction, removal, and/or replacement. 9.2.2. Reserve funding, if a Reserve Account is established as provided herein, for major Common Expenses and for major maintenance, repair, or replacement of the Common Areas and any improvements thereon. 9.2.3. All costs related to Association administration and management. 9.2.4. Insurance as required by the Bylaws. 9.2.5. Any other expense that the Association's Board of Directors and/or the Owners agree to treat as a Common Expense. ARTICLE 10 -ASSESSMENTS 10.1. By acquisition of any ownership interest in a Lot, the Owner thereof covenants and agrees thereby, on behalf of the Owner and the Owner's heirs, successors, and assigns, to pay the Association, in advance, all general and special assessments levied as provided herein. Notwithstanding the foregoing, Declarant shall not be obligated to pay any assessments. 10.2. Except as otherwise expressly set forth in this Declaration, an annual general assessment shall be levied against each Lot, and the Owner thereof is responsible for payment of said general assessment. The amount of said general assessment shall be one-fourth (1/41h) of all funds needed to pay the Common Expenses for the coming year, based on the adopted and ratified budget, considering any available funds held by the Association to pay Common Expenses. 10.3. Unless the Board otherwise provides, one-twelfth (1/12th) of each Lot's general assessment shall be due in advance on the first day of each calendar month. Upon appropriate Association action, installments of general assessments may be collected on a monthly, quarterly, semi-annual, or annual basis, as determined by the Board. Any Owner may prepay one or more installments on any general assessment or special assessment levied by the Association without penalty. 10.4. In addition to the general assessments authorized by this Article, the Association may, by Association action, levy a special assessment or assessments at any time for the purpose of 25577D001-CC&Rs Page 12 of 16 defraying, in whole or in part, the cost of any construction or reconstruction, inordinate repair, or replacement of any improvements located upon or forming a part of the Common Areas, including necessary fixtures and personal property related thereto, or for such other purpose as the Association may consider appropriate, including Association maintenance of a Lot, street trees, and/or landscaping as authorized herein. 10.5. The due dates of any special assessment payments shall be fixed by the Association action authorizing such special assessment. 10.6. Every general assessment and special assessment shall constitute a lien on the levied Lot until the assessment is paid in full. If an Owner does not pay the assessment in full within thirty (30) days of the assessment due date (the "Defaulting Owner"), then the Association or any Owner may file a claim of lien against the Lot of the Defaulting Owner. In addition to, and without in any way limiting, any other rights available at law or in equity, this lien may be foreclosed by the Association or any Owner in the same manner as foreclosing a mortgage on real property. This lien shall stay in existence until paid in full and shall not be terminated or otherwise affected by the sale or transfer of the Lot of the Defaulting Owner. All assessments not paid within thirty (30) days of the assessment due date shall bear interest at twelve (12%) per annum until paid in full, and the Defaulting Owner shall be liable for all costs and attorneys' fees incurred by virtue of that Owner's failure to pay assessments, including, but not limited to, all costs and attorneys' fees in the foreclosure of an assessment lien. In addition to being a lien on the Lot of the Defaulting Owner, the amount of any assessment, plus interest and costs and attorneys' fees as provided herein, shall be the personal liability of the Owner of the Lot at the time the unpaid assessment was due. 10.7. The annual average assessment may not be increased to an amount greater than Three Hundred Dollars ($300), exclusive of user fees, and insurance premiums, and pass-through fees for services paid by the Association, which amount shall be adjusted annually pursuant to RCW 64.90.065, prior to the transition meeting without the consent of Lot Owners, other than the Declarant, holding ninety percent (90%)of the votes in the Association. 10.8. Unless (a) the Community has only minimal reserve cost, or (b) the cost of a Reserve Study or update exceeds ten percent (10%) of the Association's annual budget, the Board shall cause the Association to prepare a reserve study based upon a visual site inspection conducted by a Reserve Study Professional (a "Reserve Study"). The Reserve Study shall comply with the requirements of RCW 64.90.550, and shall be updated annually unless doing so would impose an unreasonable hardship. At least every three (3) years, an updated Reserve Study must be prepared and based upon a visual site inspection conducted by a Reserve Study Professional. When more than three (3) years have passed since the date of the last Reserve Study prepared by a Reserve Study Professional, the Owners to which at least thirty-five percent (35%) of the votes are allocated may demand, in writing, to the Association that the cost of a Reserve Study be included in the next budget and that the Reserve Study be prepared by the end of that budget year. The written demand must refer to RCW 64.90.555. The Board shall, upon receipt of the written demand, provide reasonable assurance the Owners who made the demand that the Board will include a Reserve Study in the next budget and, if the budget is not rejected by a majority of the Owners, will arrange for the completion of a Reserve Study. ARTICLE 11 -TRACTS 11.1. The Property includes the following tracts: 25577D001-CC&Rs Page 13 of 16 11.1.1. Tracts 997 and 998 are both open space/stormwater tracts. Upon recording of the Subdivision, Tracts 997 and 998 were both conveyed to the Association for ownership and maintenance purposes. 11.1.2. Tract 999 is an access/utility tract. Upon recording of the Subdivision, Tract 999 was conveyed to the Association for ownership and maintenance purposes. ARTICLE 12 - ENFORCEMENT 12.1. Owners are encouraged to attempt to resolve any dispute arising out of this Declaration through discussion or other informal means, including mediation. If an Owner fails or refuses to perform any required maintenance, repair, reconstruction, replacement, restoration, or other obligation, or fails or refuses to make any payment required under this Declaration or the Governing Documents (the "Defaulting Owner"), and if such failure or refusal continues beyond thirty (30) days after written demand to comply by another Owner, or by the Association through its Board (the "Demand Owner or the Association"), then the Demand Owner or the Association may perform the maintenance, repair, reconstruction, replacement, or restoration; make the payment; and/or otherwise cure the default, and send a statement of the costs thereof (the "Cure Costs") to the Defaulting Owner. The Demand Owner or the Association has a lien on the Defaulting Owner's Lot for the amount of all Cure Costs paid by the Demand Owner or the Association. If the Defaulting Owner does not pay the Cure Costs within thirty (30) days after the Demand Owner or the Association sends the statement of the Cure Costs, then the Demand Owner or the Association may, after an additional thirty (30) days, record a Notice of the Lien against the Lot of the Defaulting Owner, specifying the amount of the Cure Costs, in the real property records of Snohomish County, Washington. The lien for the Cure Costs may be foreclosed in the manner of foreclosing a mortgage on real property. In addition, any Owner or the Association may enforce this Declaration by a suit in a court of competent jurisdiction, and the court in any such action shall have authority to award damages, to order payments of sums due under this Declaration, to order specific performance, and to grant any other appropriate legal, equitable, or other relief. Each Demand Owner or the Association shall be entitled to recover any costs, including reasonable attorneys' fees, incurred in connection with enforcement of this Declaration against any Default Owner, whether or not such enforcement results in suit being commenced or prosecuted to judgment. In addition, in any action under this Declaration and/or action to enforce a lien under this Declaration, the prevailing party shall be entitled to recover that party's reasonable costs and attorneys'fees from the other party. 12.2. The failure of the Association, Declarant, any Owner, or any of their respective duly authorized agents to: (1) insist in any one or more instances upon the strict performance of or compliance with this Declaration or the Governing Documents; (2) exercise any right or option contained in this Declaration or the Governing Documents; or (3) serve notice or institute any action or summary proceeding shall not be construed as a waiver or relinquishment of such right for the future. Such enforcement right shall continue and remain in full force and effect. No waiver of any provision of this Declaration or the Governing Documents shall be deemed to have been made, either expressly or impliedly, unless such waiver shall be in writing and signed pursuant to a resolution of the Board. The receipt by the Association of payment of any assessment with knowledge of any breach of any covenant in this Declaration or the Governing Documents shall not be deemed a waiver of such breach. ARTICLE 13 - GENERAL 13.1. If any provision of this Declaration is held unenforceable, the remaining provisions of this Declaration shall be unaffected thereby and shall remain in full force and effect. This Declaration shall be construed under the laws of the State of Washington. As used in this Declaration, each 25577D001-CC&Rs Page 14 of 16 pronoun shall include every other pronoun and the plural shall include the singular, and vice versa, all as the context requires. The headings of the various provisions of this Declaration are for reference only and may not be used to interpret the meaning of any provisions of this Declaration. 13.2. In order to ensure that the Property will be adequately administered in the initial phases of development and to ensure the orderly transition of operations, until termination of the Declarant Control Period, this Declaration may be amended at Declarant's sole discretion by an instrument signed by Declarant. Any such amendment shall be notarized and recorded in the records of Snohomish County, Washington. At such time as Declarant ceases to have an interest in the Property either as an owner or as a secured lender, then Declarant shall no longer have any authorization to amend this Declaration, and it instead may be amended only by an instrument signed by more than fifty percent (50%) of the owners of Lots within the Property. Any such amendment shall be notarized and recorded in the records of Snohomish County, Washington. 13.3. In case of any conflict between this Declaration and any provisions on the Subdivision, this Declaration shall control. ARTICLE 14 - NO MERGER 14.1. It is the intent of Declarant that the covenants, conditions, restrictions, and easements, and other provisions of this Declaration shall be fully applicable to the Lots and shall not be merged with fee title to any of the Lots notwithstanding that the fee title to some or all of the Lots may now or in the future be held by the same person(s)or entity. Dated this day of 20 DECLARANT Corstone Contractors LLC Signature By Printed Name Its Title 25577D001-CC&Rs Page 15 of 16 STATE OF WASHINGTON ) ) ss. COUNTY OF ) On this day of 20 , 1 certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that they signed this instrument, on oath stated that they were authorized to execute the instrument and acknowledged it as the of Corstone Contractors LLC to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Notary Public in and for the State of Washington Printed Name Residing at: Appointment Expires: 25577D001-CC&Rs Page 16 of 16