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Home My WebLink AboutWQ0036031_HOA Covenants_20190917Book 1186 Page 264 IIIIBIil11111�19111 2018003925 COLUMBUS CO, NC FEE $34.00 PRESENTED & RECORDED: 08-22-2018 04:09:02 PM KANDANCE H. BULLOCK REGISTER OF DEEDS BY: TAMIKA MCCRAY DEPUTY BK: RB 1186 PG: 264-280 Prepared by: Hogue Hill, LLP 101 South Third Street, Wilmington, NC 28401 STATE OF NORTH CAROLINA COUNTY OF COLUMBUS DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR BRISTOL BAY. This DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR BRISTOL BAY (herein "Declaration"), is made and entered into on this the Al day of Awgw , 2018 between South Side Developers, Inc. (herein after "Declarant"), and Bristol Bay Homeowner's Association Inc., (hereinafter "Association") and all parties hereafter acquiring any of the described property. WITNESSETH: WHEREAS, Declarant is the owner of all lots within a subdivision in the County of Columbus, State of North Carolina, known as Bristol Bay, and being that certain tract or parcel of land more particularly described by map and survey recorded in Map Book 97, Page 27, Columbus County Registry; and WHEREAS, Declarant desires to subject the Property to these protective covenants within BRISTOL BAY to provide for, among other things, the preservation of the property values and the desirability and attractiveness of the real property in BRISTOL BAY, and to provide for the establishment and the continued maintenance of the Common Areas, the Limited Common Areas and Landscape of Common Areas and Limited Common Areas (as defined below) in BRISTOL BAY. NOW THEREFORE, Declarant declares that the Property described in Exhibit A shall be held, sold, and conveyed subject to the North Carolina Planned Community Act set forth in Chapter 47F of the North Carolina General Statutes (the "Act"), as well as the following easements, restrictions, covenants, and conditions. Theses Protective Covenants shall be binding on and shall inure to the benefit of all parties having any right, title or interest in the Properties or any part thereof, their heirs, successors, and assigns. Book 1186 Page 265 ARTICLE I PROPERTIES SUBJECT TO THIS DECLARATION The property which shall be held, transferred sold, conveyed, and occupied subject to this Declaration is located in the County of Columbus, State of North Carolina, and is more particularly described as being all of the property shown on map and survey recorded in Map Book 97, Page 27, Columbus County Registry, plus all the utility and access easements as shown on the aforesaid map. The Declarant hereby subjects the heretofore described property to this Declaration and the jurisdiction of the Association. Additional properties maybe subjected to these Declarations within ten (10) years from the date of this instrument. ARTICLE II DEFINITIONS Section 1. "Act" shall mean the North Carolina Planned Community Act enacted under Chapter 47F of the North Carolina General Statutes, as amended. Section 2. "Articles" shall mean the Articles of Incorporation of the Association as filed with the Secretary of State, State of North Carolina, as the same may be from time to time amended. Section 3. "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 BRISTOL BAY pursuant to the provisions of this Declaration. Section 4. " Association" shall mean and refer to BRISTOL BAY HOMEOWNERS ASSOCIATION, INC., a North Carolina non-profit corporation, its successors and assigns. Section 5. `Board" or "Board of Directors" shall mean those persons elected or appointed and acting collectively as the board of directors of the Association. Section 6. "Bylaws" shall mean the document for governance of the Association as adopted initially by the Board and as amended by the Members. Section 7. "Common Properties" shall mean all real property and any improvements constructed thereon, owned by the Association for the common use and enjoyment of the Owners and Members of the Association. Section 8. "Common Expense" shall mean and include: (a) All sums lawfully assessed by the Association against its members; (b) Expenses of the common area and administration, maintenance, repair, or replacement of the Common Area/Pond/Drainage Easement; (c) Expenses declared to be common expenses by the provisions of the Act, this Declaration or the Bylaws of the Association; (d) Hazard, liability, or such other insurance premiums as the Act, the Declaration or the Bylaws may require the Association to purchase; or as the Association may deem appropriate to purchase; (e) Ad valorem taxes and public assessment charges lawfully levied against Common Properties; W Expenses agreed by the members to be common expenses of the Association. Section 9. "Declarant" shall mean and refer to South Side Developers, Inc, its successors and assigns if such successors or assigns should acquire more than one undeveloped Lot from the Declarant for the purpose of development. Book 1186 Page 266 Section 10. "Lot" shall mean and refer to any plot of land shown upon any recorded subdivision map of the Properties with the exception of the "Pond/Drainage Easement/Common Area." Section 11. "Member" shall mean and refer to every person or entity who holds membership in the Association. Section 12. "Membership" shall mean and refer to the rights, privileges, benefits, duties, and obligations, which shall inure to the benefit of and burden each Member of the Association. Section 13. "Notice" required to be given herein shall be in writing and mailed by U.S. mail, postage prepaid, first class to the address of the Association or of any Member on the records of the Association or shall be hand delivered to the Association or the Member. Section 14. "Owner" or "Lot Owner" shall mean and refer to the record owner, whether one or more persons or entities, of a fee simple title to any Lot which is part of the Property, including contract sellers, but excluding those having such interest merely as security for the performance of an obligation. Record ownership of any Lot shall make the Owner thereof a Member of the Association. Section 15 "Planned Community" shall mean the Property, any Additional Property, and all portions thereof, which the Declarant has submitted or may later submit to the terms, covenants, conditions, easements and restrictions of this Declaration, as contemplated by Section 47F-1-103(23) of the Act. Section 16 "Pond/Drainage Easement/Common Area" shall consist of those areas designated on recorded plats of Bristol Bay as such. Such areas shall be dedicated in perpetuity to the common use and enjoyment of the owners. The Declarant will convey all Permanent Common Open Space shown on the various plats of the subdivision to the Association. The Association shall be responsible for the repair and maintenance thereof as set forth in this Declaration. Section 17. "Properties" shall mean and refer to that certain real property hereinbefore described, and such additions thereto as may hereafter be brought within the jurisdiction of the Association. ARTICLE III PROPERTY RIGHTS Section 1. Owners' Easements of Enioyment. Every Owner shall have the right and easement of enjoyment in and to the Common Properties together with and including the right of access, ingress and egress, both pedestrian and vehicular, on and over the drives, walkways and parking areas of the Common Properties, all of which shall be appurtenant to and shall pass with the title to every Lot, subject to the following provisions: (a) the right of the Association to dedicate, sell, lease mortgage or transfer all or any part of the Pon&Drainage Easement/Common Area, or any interest therein, to any public agency, authority, or utility, or to any other person for such purposes and subject to such conditions as may be agreed upon by the Members. No such dedication, sale, mortgage or transfer shall be effective unless it has been approved by a vote or the written agreement to such dedication, sale, lease, mortgage, or transfer signed by two-thirds of each class of Members has been recorded, and the Lake Waccamaw Town Council has agreed to such conveyance. On such instrument, the Secretary of the Association shall certify that two-thirds of the Members have approved the dedication, sale, lease, mortgage or transfer, and that the certificate may be relied upon by any third party without inquiry and shall be conclusive as to any grantee, its successors or assigns; provided, however, conveyances for general utility purposes, as specified herein, may be made by the Association without consent of the Members. Book 1186 Page 267 (b) the right of the Association, in accordance with its Articles or Bylaws to impose rules and regulations for the use and enjoyment of the Common Properties, the Lots and improvements thereon, which rules and regulations may further restrict the use of the Common Properties and create Limited Common Properties. (c) the right of Owners of Lots on additional lands annexed to the Property initially, or subsequently, to the easements of enjoyment and rights of ingress, egress and access, as specified above, to the initial Property and all lands included in subsequent phases. (d) the right of the Association, in accordance with its Articles and By -Laws, to borrow money for the purpose of improving the Pond/Drainage Easement/Common Area, and facilities and in aid thereof to mortgage said property, and the rights of such mortgagee in said Properties shall be subordinate to the rights of the homeowners hereunder; and (e) the right of the Association to adopt, publish, and enforce rules and regulations as provided in Article IX. Section 2. Title to the Common Properties. The Declarant hereby covenants for itself, its heirs and assigns, that it will convey fee simple title to the Pond/Drainage Easement/Common Area to the Association, free and clear of all encumbrances and liens, prior to the conveyance of the first Lot. Section 3. Parking Rights. The Association may regulate the parking of boats, trailers, and other such items on the permanent Common Open Space. ARTICLE IV OWNERS' ASSOCIATION Section 1. Formation of Association. BRISTOL BAY HOMEOWNERS ASSOCIATION, INC. is a non- profit corporation organized pursuant to the Nonprofit Corporation Act of the State of North Carolina for the purpose of establishing an association for the Owners of Lots to operate and maintain the Common Properties, collect and disburse funds to pay the Common Expenses, and to provide any other services provided in this Declaration or agreed to by a majority of the Members. Section Z. Membership. Every owner of a lot which is subject to assessment shall be a Member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment. Section 3. Voting Rights. 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 in no event, shall more than one vote be cast with respect to any Lot. Fractional voting with respect to any Lot is hereby prohibited. 4 Book 1186 Page 268 Class B. During the Declarant Control Period as set forth below the Declarant shall be a Class B member and shall be entitled to four (4) votes for each Lot owned. The Class B membership shall cease and be converted to Class A membership on the happening of either of the following events, whichever occurs earlier: (a) when the Declarant owns one percent (1 %) or less of the total number of the Planned Lots in the Property, including any Additional Property shown on the map of survey recorded in Map Book 97, Page 27 of the Columbus County Registry; or (b) on December 31, 2041; or (c) upon the surrender of all Class B membership by the holder thereof or cancellation by the Association. Section 4. Powers, Privileges, Rights and Obligations. In addition to the rights and powers granted to the Association by the Act, this Declaration, its Articles and Bylaws, and to the rights and powers with regard to assessments set forth in Article V of this Declaration, the Association shall 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 VI hereof: (a) The Association shall be entitled to make and amend reasonable rules and regulations governing use of the Lots and the Common Properties; (b) The Association shall be responsible for the operation, upkeep, maintenance, protection, preservation, repairs, reconstruction and/or replacement of (i) the Common Properties improvements and additions thereto, and (ii) it may, in its sole and absolute discretion, accept responsibility for the upkeep and maintenance of the Limited Common Properties, if any; provided, however, that in the event that any of the above activities are necessitated by the willful act or 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 recovered by insurance, then, at the sole discretion of the Board, the cost of the same 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 67% of the votes of its Members; (d) The Association may suspend the voting rights and privileges of any 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; and (e) The Association may mortgage or convey the Common Properties, or dedicate or transfer all or part of the Common Properties, to any public agency, authority or utility in the manner described herein. (f) The Association shall have the authority to hire and discharge management agents, employees, and independent contractors. Book 1186 Page 269 ARTICLE V COVENANT FOR MAINTENANCE ASSESSMENTS Section 1. Creation of the Lien and Personal Obligation of Assessments. The Declarant, for each Lot owned within the Property, hereby covenants, and each Owner of any Lot by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association: (1) annual assessments or charges which are Common Expenses, and (2) special assessments for extraordinary maintenance and capital improvements, (3) special assessments for purchase, construction or reconstruction of improvements; (4) to the appropriate governmental taxing authority, a pro rata share of assessments for public improvement to the Common Properties and public roads if the Association shall default in payment thereof; and (5) assessments (fines) levied as a result of violations of the Declaration rules, policies and design guidelines. The annual and special assessments, together with interest and costs, fines, and reasonable attorneys' fees for collection, shall be a charge on the land and shall be a continuing Iien upon the Lot against which each such assessment is made. Each such assessment, together with interest, costs and reasonable attorneys' fees, shall also be the personal obligation of the person who was the Owner of such Lot at the time when the assessment fell due. The personal obligation for the delinquent assessments shall not pass to his successors in the title unless expressly assumed by them. The Association shall also have the authority, through the Board to establish, fix and levy a special assessment on any Lot to secure the liability of the Owner thereof to the Association arising from breach by such Owner of any of the provisions of this Declaration which breach shall require the expenditure of time and money or both, by the Association for repair or remedy. Each Owner covenants for himself, his heirs, successors and assigns, to pay each assessment levied by the Association on the Lot described in such conveyance to him within ten (10) days of the due date as established by the Board, and further covenants that if said assessment shall not be paid within thirty (30) days of the due date, the payment of such assessment shall be in default and the amount thereof become a lien upon said Owner's Lot as provided herein and shall continue to be such lien until fully paid. Section 2. Purposes of Assessments.The assessments levied by the Association shall be used exclusively for the paying of Common Expenses to promote the recreation, health, safety, and welfare of the residents in the Properties and in particular, but not limited to, for the acquisition, improvement and maintenance of the Pond/Drainage Easement/Common Area, including, the maintenance, repair, and reconstruction of facilities serving the properties situated on the Common Area, such maintenance to include the cutting and removal of weeds and grass and the removal of trash and rubbish or any other maintenance or for the use and enjoyment of the Common Area, including but not limited to, the cost of repairs, replacements and additions, the cost of labor, equipment, materials, management and supervision, the payment of taxes and public assessments assessed against the Common Area, the procurement and maintenance of insurance in accordance with this Declaration, the employment of attorneys to represent the Association when necessary, the provision of adequate reserves for the replacement of capital improvements including, without limiting, the generality of the foregoing, signs, grading, landscaping and any other major expense for which the Association is responsible, and such other needs as may arise. Section 3. Reserves. The Association shall establish and maintain an adequate reserve fund for the periodic maintenance, repair, and replacement of improvements to the common area and those other portions of the Properties which the Association may be obligated to maintain. Such reserve fund is to be established out of regular assessments for common expense. Section 4. Maximum Annual Assessment. Until January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment shall be $360.00 per lot. Book 1186 Page 270 (a) From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment may be increased effective January 1 of each year without a vote of membership by up to five (5%) of the previous year's assessment. (b) From and after January 1 of the year immediately following the conveyance of the fast Lot to an Owner, the maximum annual assessment may be increased above the increase permitted in Section 4(a) above by a vote of 67% of each class of Members who are voting in person or by proxy, at a meeting duly called for this purpose, written notice of which shall be sent to all Members not less than (30) days nor more than sixty (60) days in advance of the meeting setting forth the purpose of the meeting. The limitations hereof shall not apply to any change in the maximum and basis of the assessments undertaken as an incident to a merger or consolidation in which the Association is authorized to participate under its Articles of Incorporation. (c) The Board of Directors may fix the annual assessment at an amount not in excess of the Maximum without a vote of the Members. Section 5. Special Assessments for Capital Improvements. In addition to the Annual Assessments 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, restoration, repair or replacement of a capital improvement upon the Common Area, and in connection with maintenance, including fixtures and personal property related thereto, and any property for which the Association is responsible, provided that any such assessment shall have the assent of 67% of each class of members who are entitled to vote in person or by proxy at a meeting duly called for this purpose, written notice of which shall be sent to all members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting setting forth the purpose of the meeting.. Section 6. Notice and Ouorum for Any Action Authorized Under Sections 4 and 5. Written Notice of any meeting called for the purpose of taking any, action authorized under Section 4 or 5 shall be sent to all members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting. At the first such meeting called, the presence of members or of proxies entitled to cast sixty percent (60%) of all votes of each class of membership shall constitute a quorum. If the quorum is not present, another meeting shall be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be one-half (1/2) of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting. Section 7. Insurance Assessments. All premiums on insurance policies purchased by the Board or its designee pursuant to Article IV and any deductibles payable by the Association upon loss shall be a Common Expense, 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 4 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 5% limitation set out in Section 4, (a) of this Article V. Section 8 Ad Valorem Tax Assessments. All ad valorem taxes levied against the Common Properties, if any, shall be a Common Expense, and the Association may in any assessment year levy against the Owners equally an "Ad Valorem Tax Assessment", in addition to the Annual Assessments provided for under Section 4 above, which shall be in an amount sufficient to pay such ad valorem taxed in such year not included as a component of the Annual Assessment. Such assessment shall not be subject to the 5% limitation set out in Section 4, (a) of this Article V. Book 1186 Page 271 Section 9. Uniform Rate of Assessment: Grace Period for Builders. (a) Both Annual and Special Assessments shall, except as herein otherwise specifically provided, be fixed at a uniform rate for all Lots and shall be collected on a monthly basis, provided however, that the assessment for Lots owned by the Declarant which are not occupied as a residence, may be a lesser amount as fixed by the Board of Directors of the Association, but shall not be less than twenty-five percent (25%) of the regular assessment for other Lots. However, during the Declarant Control Period the Declarant may satisfy its obligation for Lots it owns by paying the difference between the amount of assessments levied on all other Lots subject to assessment and the amount of the actual expenditures by the Association during the fiscal year. (b) Declarant's Option to Fund Budget Deficits. During the Class'B" Control Period, Declarant may satisfy its obligation for assessments on Units which it owns either by. (i) paying such assessments in the same manner as any other Owner; (ii) paying the difference between the amount of assessments levied on all other Units subject to assessment and the amount of actual expenditures by the Master Association during the fiscal year; or (iii) paying one-half of the assessments for an unimproved Unit for all Units which are platted and Recorded but which have not yet been sold to an Owner other than Declarant or an Approved Builder. Unless Declarant otherwise notifies the Board in writing at least forty-five (45) days before the beginning of each fiscal year, Declarant shall be deemed to have elected to continue paying on the same basis as during the immediately preceding fiscal year. Regardless of Declarant's election, Declarant's obligations hereunder may be satisfied in the form of cash or by "in kind" contributions of services or materials, or by a combination of these. After termination of the Class "B" Control Period, Declarant shall pay assessments on its unsold Units in the same manner as any other Owner. Section 10. Date of Commencement of Assessments; Due Dates. The annual assessments provided for herein shall commence as to all Lots on the first day of the month following the conveyance of the Pond/Drainage Easement/Common Area. Such annual assessments shall be paid ratably on a monthly basis. The Board of Directors shall fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every Owner subject thereto. The due dates shall be established by the Board of Directors. The association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth the assessments on a specified Lot have been paid. Any certificate so given shall be conclusive evidence of payment of the assessments stated therein. Section 11. Effect of Nonpayment of Assessments: Remedies of the Association. Any assessment not paid within thirty (30) days after the due date shall bear interest from the due date at the rate of six percent (6%) per annum. The Association may bring an action at law against the Owner personally obligated to pay the same or foreclose the lien against the property in the same manner in which Deeds of Trust may be foreclosed under the power of Sale pursuant to Chapter 45 of the N.C. General Statutes, or its successors, and in either event interest, costs, late payment charges and reasonable attorneys' fees of any such action shall be added to the assessment. No Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the Permanent Common Space or abandonment of his Lot. Should any deficiency remain after the foreclosure, the Association may also bring an action against the owner of said deficiency. Section 12. Subordination of the Lien to Mortgages and Ad Valorem Taxes. The lien of the assessments provided for herein shall be subordinate to the lien of any institutional first mortgage and ad valorem taxes. Sale or transfer of any Lot pursuant to mortgage or tax foreclosure or any proceeding in lieu thereof, shall extinguish the lien of such assessments as to payments which become due prior to such sale or transfer, but shall not abate the personal obligations of the prior Owner. No sale or transfer shall relieve such Lot from liability for any assessments thereafter becoming due or from the lien thereof. Should the priorities set forth above be modified by law, such variation as established by law shall prevail. Section 13. Exempt Property. All Properties dedicated to, and accepted by, a local public authority and Properties owned by a charitable or non-profit organization exempt from taxation by the laws of the State of North Carolina shall be exempt from the ad valorem tax assessments created herein. However, no land or improvements devoted to dwelling use shall be exempt from said assessments. Book 1186 Page 272 Section 14. Working Capital Fund. At the time of closing of the sale of each lot a sum equal to $200.00 for each lot shall be collected and transferred to the Association to be held as a working capital fund. The purpose of said fund is to ensure that the Association Board will have adequate cash available to meet unforeseen expenses, and to acquire additional equipment or services deemed necessary or desirable. Amounts paid into the fund shall not be considered advance payment of regular assessments. ARTICLE VI USE RESTRICTIONS AND ARCHITECTURAL CONTROL No building, fence, wall, or other structure shall be commenced, erected, or maintained upon the Properties, nor shall any exterior addition to or change or alteration therein be made until the plans and specifications showing the nature, kind, shape, height, materials, 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 Board of Directors of the Association, or by an architectural committee composed of three (3) or more representatives appointed by the Board. In the event said Board, or its designated committee, fails to approve or disapprove such design and location within sixty (60) 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. ARTICLE VII ANNEXATION OF ADDITIONAL PROPERTY Section 1 Annexation of additional property shall require approval from the Association, and shall be required to occur within ten (10) years from the date of this instrument, provided, however, that all annexations of additional properties to the original development described in Article I hereof must be contiguous to the property described in Article I hereof or property previously annexed. Provided further, that no annexation of additional property shall have the effect of placing the original development in violation of the Town of Lake Waccamaw Zoning ordinances. Section 2. Annexation of non-contiguous additional Properties shall be accomplished by recording, in the County Registry a Declaration of Annexation, duly executed, describing the lands annexed and incorporating the provisions of this Declaration, either by reference or by fully setting out said provisions of this Declaration. These additional lands shall be deemed annexed to the Properties on the date of recordation of the Declaration of Annexation, and in the case of an annexation by the Declarant, no action or consent on the part of the Association or any other person or entity shall be necessary to accomplish the annexation, except approval by the Town of Lake Waccamaw. Section 3 Prior to the conveyance of the first lot in any newly annexed area, the Declarant shall deliver to the Association one or more deeds conveying fee simple title to any Permanent Common Open Space within the lands annexed free and clear of all encumbrances and liens. Section 4. This Article shall not apply to those Lots shown on the Map of Bristol Bay recorded in Map Book 97, Page 27 in the Columbus County Registry and identified as "Future Development." These lots may be annexed by the Declarant without the need for action or consent on the part of any third party. Book 1186 Page 273 ARTICLE VIII INSURANCE Section 1. Insurance coverage on the Property shall be governed by the following provisions: (a) Ownership of Policies. All insurance policies upon the common area shall be purchased by the Association for the benefit of all the Association and its Members. (b) Coverage. All buildings and improvements and all personal property included in the Permanent Common Open Space and facilities shall be insured in an amount equal to one hundred percent (100%) insurable replacement value as determined annually by the Association with the assistance of the insurance company providing coverage. Such coverage shall provide protection against: (i) Loss or damage by fire and other hazards covered by the standard coverage endorsements, and ii) Such other risks as from time to time shall be customarily covered with respect to improvements on the land, if any. (iii) Such policies shall contain clauses providing for waiver of subrogation. (c) Liability. Public liability insurance shall be secured by the Association with limits of liability of no less than One Million and No/100 Dollars ($1,000,000) per occurrence and shall include an endorsement to cover liability of the Owners as a group to a single Owner. There shall also be obtained such other insurance coverage as the Association shall determine from time to time to be desirable and necessary. (d) Premiums. Premiums for insurance policies purchased by the Association shall be paid by the Association and charged to the Owners as an assessment according to the provisions of Article V above. (e) Proceeds. All insurance policies purchased by the Association shall be for the benefit of the Association and the Owners and their mortgagees as their interest may appear, and shall provide that all proceeds thereof shall be payable to the Association as insurance trustee under this Declaration. The sole duty of the Association as insurance trustee shall be to receive such proceeds as are paid and to hold the same in trust for the purposes stated herein or stated in the By -Laws and for the benefit of the Owners and their mortgagees in the following shares: (i) Proceeds on account of damage to Permanent Common Open Space and facilities held for the Association. (ii) In the event a mortgagee endorsement has been issued for any Lot, the share of the Owner shall be held in trust for the mortgagee and the owner as their interests may appear. Section 2. Distribution of Insurance Proceeds. Proceeds of insurance policies received by the Association as insurance trustee shall be distributed to or for the benefit of the beneficial owners in the following manner: (a) Expense of the Trust. All expenses of the insurance trustees shall be first paid or provisions made therefor. (b) Reconstruction or Repair. The remaining proceeds shall be paid to defray the cost of repairs. Any proceeds remaining after defraying such cost shall be distributed to the beneficial owners as above provided. Section 3. Fidelity Insurance or Bond. All persons responsible for or authorized to expend funds, or otherwise deal in the assets of the Association or those held in trust, shall fast be bonded by a fidelity insurer to indemnify the Association for any loss or default in the performance of their duties in an amount equal to twelve (12) months assessments plus reserves accumulated. 10 Book 1186 Page 274 ARTICLE IX USE RESTRICTIONS Section 1. Rules and Regulations. The Board of Directors of the Association shall have the power to formulate, amend, publish, and enforce reasonable rules and regulations concerning the use and enjoyment of each Lot and the Permanent Common Open Space. Such rules and regulations may provide for imposition of fines or penalties for the violation thereof, or for the violation of any of the covenants and conditions contained in this Declaration. Section 2. Use of Properties. No portion of the Properties (except for temporary office duties of the Declarant and/or any model used by Declarant) shall be used except for residential purposes and for purposes incidental or accessory thereto. Section 3. Quiet Enjoyment. No obnoxious or offensive activity shall be carried on or 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, nor device or thing of any sort whose normal activities or existence are in any way noxious, dangerous, unsightly, unpleasant or of such other nature as may diminish or destroy the enjoyment of other Lots by the Owners thereof. Section 4. Animals. No animals, livestock or poultry of any kind shall be kept or maintained on any Lot or in any dwelling except that dogs, cats or other household pets that in the sole opinion of the Association are not deemed threatening or dangerous to people may be kept or maintained, provided that they are not kept or maintained for commercial purposes and provided further that they are not allowed to run free, are at all times kept properly leashed and under the direct control of their owner and do not become a nuisance to the neighborhood. Only a resident's personal household pets may be kept or maintained. Each owner will be responsible for immediately collecting and properly disposing of waste from his pet. Section 5. Dwelling Specifications. No dwelling shall be constructed or permitted to remain on any lot having an area of the main structure, including attached garages and storage rooms, and exclusive of open porches and decks, of less than twelve hundred (1200) square feet. All yard and setback requirements shall comply with the Town of Lake Waccamaw setback regulations No building shall be erected, altered, placed or permitted to remain on any lot other than one (1) detached single-family dwelling not to exceed two and one-half (2 ''/2) stories in height and a private garage for not more than three (3) cars; and (with the approval of the Board of Directors of Bristol Bay Homeowners' Association or its Architectural Control Committee) an accessory building or structure for storage or other appropriate use, not in excess of one thousand (1000) square feet in area. In addition, each lot shall contain sufficient off-street parking space for at least two full-sized automobiles. No automobiles shall be parked on any street abutting any of the lots. No lot shall be subdivided without the express consent of the Bristol Bay Homeowners' Association and the Town of Lake Waccamaw. An owner may let or rent his entire dwelling unit, but no portion of any dwelling unit shall be leased separately from the rest of the unit. Section 6. Temporary Structures. Except as hereinbefore set forth, no trailer, tent, shack, barn, or other out building, except a private garage for not more than three (3) cars, nor less than two (2) or an out building not more than one thousand (1000) square feet in size, shall be erected or placed on any lot covered by these covenants. No detached garage shall at any time be used for human habitation, either temporarily or permanently. Section 7. Fences And Signs. No fence or fence -type barrier of any kind shall be placed, erected, allowed, or maintained upon any portion of the community, including any lot, without the prior written consent of the Bristol Bay Homeowners' Association or its designated Architectural Control Committee. The committee may issue guidelines detailing acceptable fence styles or specifications, but in no event, shall hogwire be approved. I Book 1186 Page 275 Chain -link fencing shall not be visible from the front (or the front and side, in the case of a comer lot) of any house located on a lot having such type fencing. No signs shall be erected or allowed to remain on any lot except with the written consent of the Board of Directors. Section 8. Accessory Buildings and Other Outdoor Structures. No accessory building of any nature whatsoever (including, but not limited to, detached garages, storage buildings, doghouses, and greenhouses) shall be placed on any lot without prior written approval of the Architectural Control Committee, with said committee to have the sole discretion relating to the location and type of accessory building which shall be permitted on any lot. No outside clothes lines, tree houses, playhouses, motorcycles, supplies, tractors, boats, trucks (other than pic-up truck rated three-quarter tons or less), trailers, vans (other than one non-commercial van owned and operated on a regular daily basis by the owner -occupant of the lot), campers or other equipment or vehicles, except for operative licensed automobiles shall be regularly parked or stored on a lot except inside an enclosed building, or behind screening approved by the Bristol Bay Homeowners' Association or its designated Architectural Control Committee. Garbage and refuse containers, transformers, air conditioning and other mechanical equipment, including solar and other alternative energy devises shall either be concealed behind screening, located or built at the rear of the main residence, or integrated into the building design so as to be inconspicuous. All outdoor equipment and accessories on a lot, such as play structures, benches, sculptures, etc., shall be concealed by approved screening or approved in writing by the Board of Architectural Control Committee as compatible and harmonious with the surroundings. Section 9. Appearance. All fireplace chimneys shall be masonry construction. Communication towers are expressly prohibited. All primary fuel storage tanks must be placed underground. No inoperable motor vehicles may be parked on any lot if visible from any road within the subdivision. All mailboxes shall be the same type, or the best possible match, if the original style is not available, and shall be provided to the first permanent Owner by the builder of the dwelling unit. All driveways and walks must be paved with concrete, asphalt, or brick. All lots on which a dwelling or unit is approved and built shall be landscaped in accordance with Bristol Bay Homeowners' Association, Inc. specifications. Landscaping must be finished upon completion of the dwelling unit for occupancy. Total construction time, from the date of final approval of Plans by the Board or Architectural Control Committee to the completion of the dwelling unit for occupancy, shall not exceed twelve (12) months. All buffer areas are to be according to the Association's requirements. G -Al tT(y IYWA EASEMENTS Section 1. All of the Properties, including Lots and Permanent Common Open Space, shall be subject to such easements for driveways, walkways, parking areas, water lines, sanitary sewers, storm drainage facilities, gas lines, telephone and electric power lines and other public utilities as shall be established by the Declarant or by its predecessors in title, prior to the subjecting of the Properties to this Declaration, and the Association shall have the power and authority to grant and establish upon, over, under, and across the Permanent Common Open Space conveyed to it, such further easements as are requisite for the convenience, use and enjoyment of the Properties. In addition, there is hereby reserved in the Declarant and its agents and employees an easement and right of ingress, egress, and regress across all Permanent Common Open Space, now or hereafter owned by the association, for the purpose of construction of improvements within the Properties. Section 2. An easement is hereby established over the Permanent Common Open Space and facilities for the benefit of applicable governmental agencies, public utility companies and public service agencies as necessary for setting, removing and reading of meters, replacing and maintaining water, sewer and drainage facilities, electrical, telephone, gas, and cable antenna lines, firefighting, garbage collection, postal delivery, emergency and rescue activities and law enforcement activities. 12 Book 1186 Page 276 Section 3. If any dwelling is located closer than five (5) feet from its lot line, so long as such setback complies with the Town of Lake Waccamaw applicable Zoning Ordinances, the owner thereof shall have a perpetual access easement over the adjoining lot to the extent reasonably necessary to perform repair, maintenance, or reconstruction of his dwelling. Such repair, maintenance, or reconstruction shall be done expeditiously and, upon completion of the work, the owner shall restore the adjoining lot to as near the same condition as that which prevailed prior to the commencement of the work as is reasonably practicable. Section 4. Water and Sewer. All lot owners shall be subject to monthly charges as approved by the proper authorities for water and sewer for domestic usage. ARTICLE XI ELECTRICAL SERVICE Declarants reserve the right to subject the above -described Property to a contract with Duke Energy Progress for the installation of underground electric cables and/or installation of street lighting, either or both of which may require an initial payment and/or continuing monthly payment to Duke Energy Progress by the Owner of each Lot within said Property. 0`I v[N_4* ili EMERGENCY ACCESS In no case shall the Town of lake Waccamaw be responsible for failing to provide any emergency or regular fire, police, or other public service to such developments or their occupants when such failure is due to the lack of access to such areas due to inadequate design or construction, blocking of access routes, or any other factor within the control of the developer, homeowners' association, or occupants ARTICLE XIV WASTEWATER DISPOSAL SYSTEM Section 1. Wastewater Disposal System. The wastewater treatment, collection, and disposal system (the "Disposal System') serving the Property includes a private portion and a public portion. The private portion of the Disposal System (the "Private Disposal System) will consist of one (1) grinder pump on each Lot and the sewer line that runs from the grinder pump to the street right of way where it will connect with the public portion of the Disposal System. The public portion of the Disposal System will consist of the sewer lines running under the street right of ways of Bristol Bay. Section 2. The Private Disposal System is permitted by the North Carolina Environmental Management Commission, ("The Commission"). The Private Disposal System has been constructed by the Developer in accordance with permit Number WQ0036032, and plans approved by the Commission (collectively, the "Permit). The Private Disposal System and appurtenances thereto are part of the Common area of the Property and shall be properly maintained and operated by the Association in conformity with the North Carolina law and provisions of the permit for construction, operation, repair, and maintenance of the system and facilities. The Private Disposal System is a Common Area which will receive the highest priority for expenditures by the Association except for Federal, State, and local taxes and insurance. Section 3 Maintenance of Private Disposal System. (a). The Private Disposal System will be maintained by the Association and the costs of the maintenance will be included in the Association's Common Expenses. In order to assure that there shall be funds readily available to repair, maintain, or construct the Private Disposal System beyond the routine operation and 13 Book 1186 Page 277 maintenance expenses, the Association will create a specific fund out of the Common Expenses, which fund will be kept separate from the routine maintenance fund allocated for the Private Disposal System and shall be part of the yearly budget. (b) In the event the Common Expense allocation and separate fiords are not adequate for the construction, repair, and maintenance of the Private Disposal System, the Association will collect Special Assessments to cover such necessary costs. Notwithstanding anything herein to the contrary, there shall be no limit on the amount of such assessments, and these Special Assessments can be made as necessary at any time. (c) If a wastewater collection system and wastewater treatment and/or disposal facility provided by any city, town, village, county, water and sewer authorities, or any other unit of government shall hereinafter become available to serve the Development, including the portion of the Development currently served by the Private Disposal System, then Association shall take such action as is necessary to cause the existing and future wastewater of the Property to be accepted and discharged into said governmental system, and shall convey or transfer as much of the Private Disposal System and such necessary easements as the governmental unit may require as a condition of accepting the Property's wastewater. (d) Recognizing that it would be contrary to public interest and to the public health, safety, and welfare for the Association to enter into voluntary dissolution without having made adequate provision for the continued proper maintenance, repair, and operation of its Private Disposal System, the Association's Bylaws provide that the Association shall not enter into voluntary dissolution without fast having transferred its said.system and facilities to some person, corporation, or other entity acceptable to and approved by the Commission by the issuance of a permit. (e) The Association shall not transfer, convey, assign or otherwise relinquish or release its responsibility for the operation and maintenance of its Private Disposal System until a permit has been reissued to the Association's successor. ARTICLE XV STORMWATER PERMIT/FACILITIES Section 1. Stormwater Run Off Rules. All lots shall be subject to the State of North Carolina rules and regulations concerning stormwater runoff as these rules are amended from time to time. Without limiting the foregoing, Declarant hereby reserves the right to impose additional restrictions upon the Property as issued by the State of North Carolina. Such additional restrictions may be imposed by Declarant by the recording of a Supplemental Declaration, and no joinder or consent of the Association or any other Owner or Person shall be required on such Supplemental Declaration. These regulations provide: (a) The following covenants are intended to ensure ongoing compliance with State Stormwater Management Permit number SW* 100807 as issued by the Division of Water Quality under 15A NCAC 2H.1000. (b) The State of North Carolina is made a beneficiary of these covenants to the extent necessary to maintain compliance with the Stormwater Management Permit. (c) These covenants run with the land and shall be binding on all persons and parties claiming under them. (d) The covenants pertaining to stormwater may not be altered or rescinded without the express written consent of the State of North Carolina, Division of Water Quality. (e) Alteration of the drainage as shown on the approved plans may not take place without occurrence of the Division of Water Quality. 14 Book 1186 Page 278 (f) The maximum built -upon area per lot is 5,500 square feet. This allotted amount includes any built - upon area constructed within the lot property boundaries, and that portion of the right-of-way between the front lot and the edge of the pavement. Built upon area includes, but is not limited to, structures, asphalt, concrete, gravel, brick, stone, slate, coquina and parking areas, but does not include raised, open wood decking, or the water surface of swimming pools. (g) All runoff on each lot must drain into the permitted system. This may be accomplished through providing roof drain gutters, which drain to the street, grading the lot to drain toward the street, or grading perimeter swales and directing them into the pond or street. Lots that will naturally drain into the system are not required to provide these measures. All drainage measures will also be reviewed and must be approved by the Association prior to construction. (h) Built upon area in excess of the permitted amount will require a permit modification. (i) Declarant reserves the right in its sole discretion, and in accordance with the state stormwater permit, to recalculate and redesignate maximum built upon areas as set forth above, provided such recalculation and redesignations are in accordance with the state stormwater permit. In addition, if any property as finally constructed does not use its allocated built upon area, Declarant shall have the sole right to reclaim such excess allotment and reallocate it to remaining properties in its sole discretion, provided such recalculations and redesignations are in accordance with state stormwater rules and are reflected by an amendment to this Declaration. Section 2. Removal of Nonconforming Condition. Any use, condition, structure or improvement placed, allowed to exist or made on or upon any lot in violation of this ARTICLE XV shall be deemed to be nonconforming. Upon written request from the Board or the Declarant, the Owner responsible for said nonconforming condition, or the owners' Association to which the Owner belongs, shall, at its own cost and expense, correct such nonconforming use, structure, or improvement in accordance with the instructions of the Board, the Declarant, or its designees which shall have the right to enter the property and correct the nonconforming condition. All costs, together with the interest at the maximum rate then allowed by law, may be assessed against the Owner of the Lot or Dwelling Unit and collected as an Individual Assessment as provided in ARTICLE V. ARTICLE XI GENERAL PROVISIONS Section 1. Enforcement. The Association, the Declarant or any Owner, shall have the rights 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 of this Declaration. Failure by the Association, the Declarant or an Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter. Section 2. Severability. The provisions of this Declaration are independent and severable, such that invalidation of any one of these covenants or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect. Section 3. Amendment of Declaration. The covenants and restrictions of this Declaration shall run with and bind the land, for a term of twenty-five (25) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years. Except as provided elsewhere herein, the covenants and restrictions of this Declaration may be amended only by an instrument signed by not less than sixty- seven percent (67%) of the Lot owners. Amendments shall not become effective until approved by the Board of the Association. Section 4 If any amendment to these covenants, conditions, and restrictions is executed, each such amendment shall be delivered to the Board of Directors of this Association. Thereupon, the Board of Directors shall, within thirty (30) days, do the following: 15 Book 1186 Page 279 (a) reasonably assure itself that the amendment has been executed by the owners of the required number of Lots. (For this purpose, the Board may rely on its roster of members and shall not be required to cause any title to any Lot to be examined). Attach to the amendment a certification as to its validity, which certification shall be executed by the Association in the same manner that deeds are executed. The following form of certification is suggested: CERTIFICATION OF VALIDITY OF AMENDMENT TO COVENANTS, CONDITIONS AND RESTRICTIONS OF BRISTOL BAY BRISTOL BAY HOMEOWNERS' ASSOCIATION, INC BY: PRESIDENT ATTEST: SECRETARY. Section 5 Management and Contract Rights of Association. Declarant may enter into a contract with a Management company manager for the purposes of providing all elements of the operation, care, supervision, maintenance, and management of the property. However, no such contract shall be binding upon the association except through express adoption, or ratification of the terms and conditions of such contract. Any contract or lease entered into by Declarant or by the Association while Declarant is in control thereof shall contain a provision allowing the Association to terminate such contract without justification or penalty after transfer of management by Declarant to the Association. Section 6. Rights of Noteholders. Any institutional holder of a first mortgage on a Lot will, upon request, be entitled to (a) inspect the books and records of the Association during normal business hours, (b) receive an annual audited financial statement of the Association within ninety (90) days following the end of its fiscal year, (c) receive written notice of all meeting of the Association and right to designate a representative to attend all such meetings, (d) receive written notice of any condemnation or casualty loss that affects either a material portion of the subdivision or the lot securing its mortgage, (e) receive written notice of any sixty-day (60) delinquency in the payment of assessments or charges owed by the owner of any lot on which it holds the mortgage, (f) receive written notice of a lapse, cancellation, or material modification of any insurance policy or fidelity bond maintained by the Owners' association, (g) receive written notice of any proposed action that requires the content of a specified percentage of mortgage holders, and (h) be furnished with copies of all insurance policies. 16 Book 1186 Page 280 IN WITNESS WH F, the p . s heret ave caused this Declaration to be executed by the Declarant and the Association this tQW day of 12018. tXOE T CA �ROLRTA C OLUMBUS fjUUi ry. The f og ing or ennexe certifioate(plof SOUTH SIDE DEVELOPERS, INC (ie) 7?ublio (lies) (ha e) beau vtarified a North Carolina Corporation. to rave a ignature, seal o' ata=P, And an ra„>.iratioxx data Thla In.str�urnp�t send ti�.i,o By: e `!: I;ifioate aro duly registOP94 at the Date Jamie urtMalpass, President Aatnmo an in the book. anti page shovm ca. _Kh()s''`n BRISTOL BAY HOMEOWNERS' ASSOCIATION, INC. / ' a North Carolina non-profit Corporation of 'D MLJ - By: IAfi (7& Deputy l3®gisw De a ey B. Mal ass., President f r s . WpW STATE OF NORTH CAROLINA COUNTY rac US I,a Notary Public for k County and State of North Carolina, d er y certify that J IE KURT MALPASS, personally appeared before me this day and acknowledg d at he is the President of SOUTH SIDE DEVELOPERS, INC., a North Carolina corporation and further ac w edged that being authorized to do so he executed of the foregoing instrument on behalf of SOUTH SIDE DEVELOPERS, INC. as President. WITNESS my hand and notarial seal this day of , 2618. /7 /n / ;<.ATRINA L. MOORE lotary P:: North Carolina �•:;',a Public, (r New Piano County I :? My rmmission Expires Novornber09,2020 STATE OF NORTH CAROLINA My Commission Expires: //- - COUNTY O C L BUS I, a Notary Public for ounty and State of North Carolina, d er y certify that JE FREY B. MALPASS, personally appeared before me this day and acknowledg at he is the Presi t of BRISTOL BAY HOMEOWNERS' ASSOCIATION., INC., a North Carolina co ration and further acknowledged that being authorized to do so he executed of the foregoing instrument on behalf of BRISTOL BAY HOMEOWP/day S' ASSOCIATION, INC. as President. WITNESS my hand and notarial seal thi of g�'1 TRINA L. MOORE �T WVy Public, North Carolina New Hanover County My Commission Expires Novamber 09, 2020 17 My Commission Expires: -J iJt