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HomeMy WebLinkAboutWQ0040033_Regional Office Historical File Pre 2018Mr. Peter T. Harakas, President Highland Park Townhomes I Owners Assoc' 2550 West Tyvola Road, Suite 100 Charlotte, NC 28217 Dear Mr. Harakas. Y COOPER MICHAEL S. REGAN LINI)A CULPEPPE.R Interim im Dire,•rr=+r° June 4, 2018 n,. Inc_ Subject: Permit No. WQO040033 Highland Park Townhomes I Owners Association, Inc. Highland Park Townhomes Wastewater Collection System Extension Permit Mecklenburg County In accordance with your application received May 30, 2018, we are forwarding herewith Permit No, WQO040033 dated June 4, 2018, to Highland Park Townhomes I Owners Association, Inc. (Permitte the construction and operation upon certification of the subject wastewater collection system extension. This permit shall be effective from the date of issuance until rescinded, and shall be subject to the conditions and limitations as specified therein. This cover Vetter shall be considered a part of this permit and is therefore incorporated therein by reference, Please pay particular attention to the following conditions contained within this permit: Condition 11.1: This permit shall not be automatically transferable; a request must be made and approved. Condition I1.4: Requires that the wastewater collection facilities be properly operated and maintained in accordance with 15A NCAC 2T.0403 or any individual system -wide collection system permit issued to the Permittee.. It shall be the responsibility of the Permittee to ensure that the as -constructed project meets the appropriate design criteria and rules. Failure to comply may result in penalties in accordance with North Carolina General Statute §143-215.6A through §1.43-215.6C, construction of additional or replacement wastewater collection facilities, and/or referral of the North Carolina licensed Professional Engineer to the licensing board. If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right to request an adjudicatory hearing upon written request within 30 days following receipt of this permit. This request must be in the form of a written petition, conforming to Chapter 150B of North Carolina General Statutes, and filed with the Office of Administrative Hearings, 6714 Mail Service Center, Raleigh, NC 27699-6714. Unless such demands are made, this permit shall be final and binding. SIaCc Noah 'J^t�tc�thig Canpa inkmia I C,tu3DLt . V6aler [tescraiii:es te o„Iuah V1aa>r..sa file F eatortai.(Alec 70,1-663. G.69Q tr Gina 2# I 1 if you need additional information concerning this matter, please contact Barry Love at (704) 235-2143 or via e-mail at barry.love@ncdenr.gov. Sincerely, DocuSigned by: A14CC681AF27425._ by W. Corey Basinger, Regional Supervisor Water Quality Regional Operations Section Mooresville Regional Office Division of Water Resources, NCDEO. cc: Wayne M. Harris, P.E. (e-copy) Charlotte Water (e-copy) Tornmy Rowland (e-copy) Regional Office Files Water Resources Central Files PERCS (e-copy) 2 Environmental Quality WASTEWATER COLLECTION SYSTEM EXTENSION PERMIT In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as amended, and other applicable Laws, Rules, and Regulations, permission is hereby granted to Highland Park Townhomes 1 Owners Association, Inc. Mecklenburg County for the construction and operation of approximately 344 linear feet of 6-inch gravity sewer as part of the Highland Park Townhomes project, and the discharge of 3,420 gallons per day of collected domestic wastewater into the Charlotte Water existing sewerage system, pursuant to the application received May 30, 2018, and in conformity with 15A NCAC 2T; the Division's Gravity Sewer Minimum Design Criteria adopted February 12, 1996, as applicable; the Division's Minimum Design Criteria for the Fast -Track Permitting of Pump Stations and Force Mains adopted June 1, 2000, as applicable; and other supporting data subsequently filed and approved by the Department of Environmental Quality and considered a part of this permit. This permit shall be effective from the date of issuance until rescinded and shall be subject to the specified conditions and limitations contained therein. DocuSigned by: A14CCBo1Ar'27425... by W. Corey Basinger, Regional Supervisor Water Quality Regional Operations Section Mooresville Regional Office Division of Water Resources, NCDEQ Permit Number: WQ0040033 Permit Issued: June 4, 2018 3 SUPPLEMENT TO PERMIT COVER SHEET Highland Park Townhornes I Owners Association,|nc-is hereby authorized to: Construct, and then operate ppon certification the aforementioned wastewater collection extension. The sewage and wastewater collected by this system shall be treated in the Charlotte Water Sugar Creek Wastewater Treatment Plant in accordance with Permit Number NCO024937. Permitting of this project does not constitute an acceptance of any part of the project that does not meet I5A N[A[ ZT; the Division's Gravity Sewer Minimum Design Criteria adopted February lZ. 1996, as applicable,- and the Division's Minimum Design Criteria for the Fast -Track Permitting of Pump Stations and Force Mains adopted June 1, 2UOO'asapplicable, unless specifically mentioned herein. Division approval is based on acceptance of the certification provided by a North Carolina -licensed Professional Engineer in the application. It shall be the Permittee's responsibility to ensure that the as -constructed project meets the appropriate design criteria and rules, Construction and operation is contingent upon compliance with the Standard Conditions and any Special Conditions identified below, 1. SPECIAL CONDITIONS ]. No Mow in excess of the quantity permitted herein, 3,420 gallons per day, shall be made tributary to the subject sewer system until an application for permit modification for an increase in flow has been submitted Tnand approved bythe Division. [l6ANCA[O3T.03O4(b)| 2. This permit shall become voidable unless the agreement between Highland Park Townhnmes | Owners Association, Inc. and Charlotte Water for the collection and final treatment of wastewater is infull force and effect. [16AN[A[0ZT.O5O4(h)/ 3, The Operational Agreement between the Permhtee and 'the Environmental Management [ono,misoion is incorporated herein by reference and shall be a condition of this permit. Noncompliance with the terms of the Operational Agreement sha|1 subject the Pernnittee to all sanctions provided byNorth Carolina General Statutes §I43'2I5.6&to§l43-Zl5.6[for violation ofur failure to act in accordance with the terms and conditions of this permit. [15A NCAC 02T.01151 IL STANDARD CONDITIONS l' This permit is not transferable. In the event there is a desire for the wastewater cpUmt|cm facilities to change ownership, or there is a name change of the Permhtee, a formal permit request shall be submitted to the Division accompanied by documentation from the parties involved, and other 4 supporting materials as may be appropriate. The approval of this request shall be considered on its merits and may or may not be approved. [15A NCAC 02T.0104; G.S 143-215.1(d3)] 2. This permit shall become voidable unless the wastewater collection facilities are constructed in accordance with the conditions of this permit; 15A NCAC 2T; the Division's Gravity Sewer Minimum Design Criteria adopted February 12, 1996, as applicable; the Division's Minimum Design Criteria for the Fast -Track Permitting of Pump Stations and Force Mains adopted June 1, 2000, as applicable; and other supporting materials unless specifically mentioned herein. [15A NCAC 02T.0110] 3. This permit shall be effective only with respect to the nature and volume of wastes described in the application and other supporting data. [15A NCAC 02T .0110] 4. The wastewater collection facilities shall be properly maintained and operated at all times. The Permiee shall maintain compliance with an individual system -wide. collection system permit for the operation and maintenance of these facilities as required by 15A NCAC 2T .0403. If an individual permit is not required, the following performance criteria shall be met: (15A NCAC 02T .0108(b)]: a. The sewer system shall be effectively maintained and operated at all times to prevent discharge to land or surface waters, and to prevent any contravention of groundwater standards or surface water standards. b. A map of the sewer system shall be developed and shall be actively maintained. c. An operation and maintenance plan including pump station inspection frequency, preventative maintenance schedule, spare parts inventory and overflow response has been developed and implemented. d. Pump stations that are not connected to a telemetry system shall be inspected every day (i.e. 365 days per year). Pump stations that are connected to a telemetry system shall be inspected at least once per week. e. High -priority sewer lines shall be inspected at least once per every six -months and inspections are documented. f. A general observation of the entire sewer system shall be conducted at least once per year. g. Overflows and bypasses shall be reported to the appropriate Division regional office in accordance with 15A NCAC 2B .0506(a), and public notice shall be provided as required by North Carolina General Statute §143-215.1C. h. A Grease Control Program is in place as follows: 1. For public owned collection systems, the Grease Control Program shall include at least biannual distribution of educational materials for both commercial and residential users and the legal means to require grease interceptors at existing establishments. The plan shall also include legal means for inspections of the grease interceptors, enforcement for violators and the legal means to control grease entering the system from other public and private satellite sewer systems. 5 2. For privately owned collection systems, the Grease Control Program shall nclude at least bi- annual distribution of grease education materials to users of the collection system by the permittee or its representative. 3. Grease education materials shall be distributed more often than required in Parts (1) and (2) of this Subparagraph if necessary to prevent grease -related sanitary sewer overflows. Right-of-ways and easements shall be maintained in the full easement width for personnel and equipment accessibility. Documentation shall be kept for Subparagraphs (a) through (i) of this Rule for a minimum of three years with exception of the map, which shall be maintained for the life of the system. 5. The Permittee shall report by telephone to a water resources staff member at the Mooresville Regional Office, telephone number (704) 663-1699, as soon as possible, but in no case more than 24 hours, following the occurrence or first knowledge of the occurrence of either of the following: a. Any process unit failure, due to known or unknown reasons, that renders the facility incapable of adequate wastewater transport, such as mechanical or electrical failures of pumps, line blockage or breakage, etc.; or b. Any SSO and/or spill over 1,000 gallons; or c. Any SSO and/or spill, regardless of volume, that reaches surface water Voice mail messages or faxed information is permissible, but this shall not be considered as the initial verbal report. Overflows and spills occurring outside normal business hours may also be reported to the Division of Emergency Management at telephone number (800) 858-0368 or (919) 733-3300. Persons reporting any of the above occurrences shall file a spill report by completing and submitting Part I of Form CS-SSO (or the most current Division approved form) within five days following first knowledge of the occurrence. This report must outline the actions taken or proposed to be taken to ensure that the problem does not recur. Part of Form CS-SSO (or the most current Division approved form) can also be completed to show that the SSO was beyond control. [G.S. 143-215.1C(a1)] 6. Construction of the gravity sewers, pump stations, and force mains shall be scheduled so as not to interrupt service by the existing utilities nor result in an overflow or bypass discharge of wastewater to the surface waters of the State. (15A NCAC 02T.0108(b)I 7, Upon completion of construction and prior to operation of these permitted facilities, the completed Engineering Certification form attached to this permit shall be submitted with the required supporting documents to the address provided on the form. A complete certification is one where the form is fully executed and the supporting documents are provided as applicable. Any wastewater flow made tributary to the wastewater collection system extension prior to completion of this Engineer's Certification shall be considered a violation of the permit and shall subject the Permittee to appropriate enforcement actions. If the permit is issued to a private entity with an Operational Agreement, then a copy of the Articles of Incorporation. Declarations/Covenants/Restrictions, and Bylaws that have been appropriately filed with the applicable County's Register of Deeds office shall be submitted with the certification. A complete certification is one where the form is fully executed and the supporting documents are provided as applicable. Supporting documentation shall include the following: a. One copy of the project construction record drawings (plan & profile views of sewer lines & force mains) of the wastewater collection system extension. Final record drawings should be clear on the plans or on digital media (CD or DVD disk) and are defined as the design drawings that are marked up or annotated with after construction information and show required buffers, separation distances, material changes, etc. b. One copy of the supporting applicable design calculations including pipe and pump sizing, velocity, pump cycle times, and level control settings, pump station buoyancy, wet well storage, surge protection, detention time in the wet well, and force main, ability to flush low points in force mains with a pump cycle, and downstream sewer capacity analysis. If a portable power source or pump is dedicated to multiple stations, an evaluation of all the pump stations' storage capacities and the rotation schedule of the portable power source or pump, include travel timeframes, shall be provided. c. Changes to the project that do not result in non-compliance with this permit, regulations, or the Minimum Design Criteria should be clearly identified on the record drawings, on the certification in the space provided, or in written summary form. Prior to Certification (Final or Partial): Permit modifications are required for any changes resulting in non-compliance with this permit (including pipe length increases of 10% or greater, increased flow, pump station design capacity design increases of 5% or greater, and increases in the number/type of connections), regulations, or the Minimum Design Criteria. Requested modifications or variances to the Minimum Design Criteria will be reviewed on a case -by -case basis and each on its own merit. Please note that variances to the Minimum Design Criteria should be requested and approved during the permitting process prior to construction. After -construction requests are discouraged by the Division and may not be approved, thus requiring replacement or repair prior to certification & activation. [1SA NCAC 02T .0116] 8. Gravity sewers installed greater than ten percent below the minimum required slope perthe Division's Gravity Sewer Minimum Design Criteria shall not be acceptable and shall not be certified until corrected. If there is an unforeseen obstacle in the field where all viable solutions have been examined, a slope variance can be requested from the Division with firm supporting documentation. This shall be done through a permit modification with fee. Such variance requests will be evaluated on a case -by -case basis. Resolution of such request shall be evident prior to completing and submitting the construction certification. [ 15A NCAC 02T.0105(n)] 9. A copy of the construction record drawings shall be maintained on file by the Permittee for the life of the wastewater collection facilities. [15A NCAC 02T .0116] 10. Failure to abide by the conditions and limitations contained in this permit; 15A NCAC 2T; the Division's Gravity Sewer Design Criteria adopted February 12, 1996, as applicable; the Division's Minimum Design Criteria for the Fast -Track Permitting of Pump Station and Force Mains adopted June 1, 2000, as applicable; and other supporting materials may subject the Permittee to an enforcement action by the Division, in accordance with North Carolina General Statutes §143-215.6A through §143-215.6C, construction of additional or replacement wastewater collection facilities, and/or referral of the North 7 Carolina -licensed Professional Engineer tothe licensing board, [%5A NCA[O2T.O104;15AN[A[O2T 11. In the event that the wastewater collection facilities to| to perform satisfactorily, including the creation of nuisance conditions, the Permittee shall take immediate corrective action, including those as may be neqm\/eJ by this Division, such as the construction of additional or replacement facilities. [15A NCA[02T J3I10C 1SA N[A[ 02T .8I@8(b)] Il.The issuance ofthis permit shall not exempt the Permittee from complying with any and all statutes, rules, regulations, or ordinances that may be imposed by the Division any other Federal, State, or Local government agencies which have jurisdiction or obtaining other permits which may be required by the Division or any other Federal, State, of Local government agencies. [G.S.14B- FAST TRACK SEWER ENGINEERING CERTIFICATION PERMITTEE: PERMIT #: PROJECT: ISSUE DATE: Highland Park Townhomes i Owners Association, inc. WQ0040033 Highland Park Townhomes June 4, 2018 This project shall not be considered complete nor allowed to operate in accordance with Condition 7 of this permit until the Division has received this Certification and all required supporting documentation. It should be submitted in a manner that documents the Division's receipt. Send the required documentation the Regional Supervisor, Water Quality Regional Operations Section at the address at the bottom. Any wastewater flow made tributary to the wastewater collection system extension prior to completion of this Certification shall be considered a violation of the permit and shall subject the Permittee to appropriate enforcement actions_ The Permittee is responsible for tracking all partial certifications up until a final certification is received. A Final Certification shall be a complete set of record drawings and design calculations regardless of whether partials have been submitted. PERMITTEE'S CERTIFICATION 1, the undersigned agent for the Permittee, hereby state that this project has been constructed pursuant to the applicable standards & requirements, the Professional Engineer below has provided applicable design/construction information to the Permittee, and the Permittee is prepared to operate & maintain the wastewater collection system permitted herein or portions thereof. Printed Name, Title Signature Date ENGINEER'S CERTIFICATION I, , as a duly registered Professional En ineer in the State of North Carolina, having been authorized to observe (❑ periodically, ❑ weekly, full time) the construction of the project name and location as referenced above for the above Permittee hereby state that, to the best of my abilities, due care and diligence was used in the observation of the construction such that the construction was observed to be built within substantial compliance of this permit; 15A NCAC 02T; the Division of Water Resources' (Division) Gravity Sewer Minimum Design Criteria adopted February 12, 1996, as applicable; the Division's Minimum Design Criteria for the Fast -Track Permitting of Pump Stations and Force Mains adopted June 1, 2000, as applicable; and other supporting materials. North Carolina Professional Engineer's Seal w/signature & date: ❑ Final n Partial (include description) Certification Comments/Qualifiers (attach if necessary): State of North Carolina I Environmental Quality 'Water Resources I Water Quality Regional Operations Mooresville Regional Office' 610 East Center Avenue, Suite 301 I Mooresville, North Carolina 28115 TnA C42 1Goo STATE OF NORTH CAROLINA , COUNTY OF 'Mecklenburg Permit No W000401)33 HOME/PROPERTY OWNERS' OPERATIONAL AGREEMENT This AGREEMENT`made pursuant to G.S. 143-215.1 (di) and entered into this. day of Mfflyritotr" 1.0.la , byand between the North Carolina Environmental Management Commission, an agency of the State of North Carolina, hereinafter known: as the COMMISSION; and Highland Park Townhouses I Owners Association, Inc. , a non-profit corporation organized and existing under and by virtue of the laws of the State of North. Carolina, hereinafter known as the ASSOCIATION: WITNESSETIH: 1_. The ASSOCIATION was formed for the purpose, among others, of handling the property, affairs -and business of the development known as :Hijh'larrd Park Townhomes (hereinafter -the Development); of operating, maintaining, re -constructing and repairing the common elements of the lands and improvements subject' to unit ownership, including the Wastewater collection system with pumps; wastewater treatment works, and/or disposal facilities (hereinafter Disposal System);. and of cell e_cting dues and assessment, to provide fiordsfor such operation, maintenance, re -construction and repair. 2. The -ASSOCIATION desires, to construct and/or, operate a Disposal System to provide sanitary sewage disposal to serve the Development on said lands. 3. The ASSOCIATION has applied to. the COMMISSION for the issuance of a permit pursuant to_G.S. 143- 215.1 to construct, maintain, and/or operate the Disposal System. 4: The Development was. created subject to unit ownership in the dwellings units, other improvements and lands through filing of a Declaration:of Unit Ownership (hereinafter Declaration), pursuant to Chapter 47C or 47F of the North Carolina General Statutes. 5. The COMMISSION desires to assure: that the Disposal System of. the, Development is, properly constructed,, maintained and operated in accordance with law and permit provisions in order to protect the quality of the waters of the State and the public interest therein. NOW, THEREFORE, in consideration of the promises arid the benefits to be derived by each of the, parties hereto, the COMMISSION and ASSOCIATION do hereby mutually agree as follows; I. The ASSOCIATION shali.construct the Disposal System and/or make any additions_or modifications to the Disposal System in accordance with the permit and plans and specifications. hereafter issued and approved by the COMMISSION, and shall.: thereafter properly operate: and maintain such systems and facilities in accordance with applicable permit provisions and law. 2. The ASSOCIATION shall provide in the Declaration and Association Bylaws that the Disposal System and appurtenances thereto are part of the common elements and shall thereafter be properly maintained and operated in conformity with law and the provisions of the permit for construction , operation, repair, and maintenance of the system and facilities. The Declaration and Bylaws shall identify the entire wastewater treatment, collection and disposal system as a common element which will receive the highest priority for expenditures .by the Association except for Federal, State, and local taxes and insurance. FORM: HOA 11-17 Page 1 of 2 The ASSOCIATION shall provide in the Declaration and Association Bylaws that the Dispoa: I System will be maintained out of the common expenses. In order to assure that there shall be funds readily available to repair, maintain, or construct the Disposal Systern beyond the routine operation and maintenance expenses, the Declaration and Association Bylaws shall provide that a fund be created out of the common expenses. Such fund shall be separate from the routine maintenance fund allocated for the facility and shall be part of the yearly budget. 4. In the event the common expense allocation and separate fund(s) are not adequate for the construction, repair, and maintenance of the Disposal System, the Declaration and Association Bylaws shall provide for special assessrnents to cover such necessary costs. There shall be no limit on the amount of such assessments, and the Declaration and Bylaws shall be provided such that special assessments can be made as necessary at any time. tt a wastewater collection system and wastewater treatment and/or disposal facility provided by any city, town, village, county, water and sewer authorities, or other unit of government shall hereinafter become available to serve the Development, the ASSOCIATION shall take such action as is necessary to cause the existing and future wastewater of the Development to be accepted and discharged into said governmental system, and shall convey or transfer as much of the Disposal System and such necessary easements as the governmental unit may require as condition of accepting the Development's wastewater. 6. Recognizing that it would be contrary to the public interest and to the public health, safety and welfare for the ASSOCIATION to enter into voluntary dissolution without having made adequate prevision for the continued proper maintenance, repair and operation of its Disposal System, the ASSOCIATION shall provide in the ASSOCIATION Bylaws that the ASSOCIATION shall not enter into voluntary dissolution without first 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. 7. The ASSOCIATION shall not transfer, convey, assign or otherwise relinquish or release its responsibility for the operation and maintenance of its Disposal System until a permit has been reissued to the ASSOCIATION'S successor. . The agreements set forth in numbered paragraphs 1, 2, 3, 4, 5, 6, and 7 above shall be conditions of any permit issued by the COMMISSION to the ASSOCIATION for the construction, maintenance, repair and operation of the Disposal System. . A copy of this agreement shall be filed at the Register of Deeds in the County(ies) where the Declaration is filed and in the offices of the Secretary of State of North Carolina with the Articles of Incorporation of the Association. IN WITNESS WHEREOF, this agreement was executed in duplicate originals by the duly authorized representative of the parties hereto on the day and year written as indicated by each of the parties named below: FOR THE ENVIRONMENTAL Malan rk Townhomes I Owners A MANAGEMENT COMMISSION inda Culaenn Interim Director, Division of Water Resourres FORM: FIOA 1 I -I 7 B Print Name and Title Page 2 of 2 n, Inc. ^ May 35,ZU18 Mr. Corey Basinger NCDED-VVaterOuaKhySectinn 610East Center Ave. SoiteSO1 Mooresville, N[Z81lS Re: Highland Park 7ownhnmes—Fast Track Submittal MESA Job No. 001-16-010/W & SS ������0��f,ENRII)WFAt ivfl- Dea/MrBadnQec On behalf of our Client, CCH Highland Mill, LLC, we have a new Fast Track Submittal for a small townhome project located in [hadmtte. The proposed scope is for a private sewer extension to serve one IO'unit building and one 8-unit building located on E. 33m Street at the intersection o/N. Davidson and E. 33* Street, The wastewater flow is being discharged to an existing Charlotte Water sevve, main' however please mote that the existing sewer main was installed many years ago' therefore the permit number is not available. The following itemsare enclosed for your review and approval: • One (1)original and one (I)copy oythe completed FTA04-lGform. • Application fee /S8Holdings, LL[check #06780G,$48D.8O\ • Two (2) copies u/the Flow Tracking form (FTS[04'1G) issued by Charlotte Water. ° Two (2) copies of the Willingness to Serve letter issued by Charlotte Water. * Two (2) copies of the USGS Quad excerpt indicating the approximate location of the subject site. • Two (2) copies of the aerial photo indicating the location of the townhome lOt5, • One (1) original and one (I) copy of the completed Home/Property Owner's Operational Agreernen\(HOA 11'17). ~ Two (Z) copies ofthe HQA Articles of Incorporation, � Two (Z) copies of the HOA Restrictive Covenants, along with two (Z) copies of the First Amendment Uzthe [[R's. Thank you for your assistance. If you have any questions or need additional information, you can reach n`eat(7O4)334'13Z5orvia email at . Best regards, Mmtrm|inaEngineering & Surveying Associates � ^ Wayne 0N/Hanis,PE. Partner Enclosures as noted VVMH/j| cc: Peter Harokasw/outencb, MmtnolinaEngineering & Surveying Associates mC#C'1 170& SC #CO0940 440mStuart Andrew Blvd, Suite Charlotte, NC 28217 e Phone (ro4)o3«'13u5 Fax (7O^)334-13Jo ©ivlslon of Water lt.sources State of North Carolina Department of Environmental Quality Division of Water Resources 15,.A NCA(' 02T .0300 — FAST TRACK SEi%"ER SYSTEM EXTENSION' APPLICATION FTA 04-16 & SUPPORTING DOCUMENTATION A lic,atts n Number. vletcd by MR) All items rztttst be completed or the applieati.on will be returned .APPLICANT INFORMATION: 1. Applicant's name.: Highland Park 4°ownhomes I Own 2. Applicant type: Q Individual Corporation © General Partnership E Privately -Owned Public Utility [1]Federal © State/County Municipal 0 Other 3, Signature authority's name: Peter T. I Haraka5 per C( y(:,._.0 T t} I ti6fb) Title: President &Applicant's mailing address: ;2550 Guest Ild Road. Suite. 100 City: Charlotte State: NC Zip: 2821 7 5. Applicant's contact information: Phone number: (704) 442-4961 Email Address: Rcter.har, tk)stiii.saus yburbaa)k.eom cen7tpany, municipality, HOA, utility, II. PROJECT INFORiMATION: 1. Project name: Highland Park Toyynhomes 2 Application/Project status. Proposed New Permit.) © Existing Permit'Projec.t If a moidification, provide the existing permit number: WQ00 and issued date: I'f new constnictioon but part of a master plan, provide the existing permit number: WQ00 .. 3. County where project is located: Mecklenburg 4. Approximate Coordinates (Decimal ,Degrees): Latitude: 352459` Longitude:-80.8083' 5, Parcel. ID (if applicable): 083-078-09 thru 083-0 78-_26 (or Parcel ID to closest downstream sewer) . CONSULTANT INFORMATION: 1, Professional Engineer: Wayne M.Flartis Finn.. Metrolina Engineering & Surveyittg k' ssocsa Mailing address: 4400Stuart Andrews Blvd, SuitemN City: Charlotte State: NC Phone number: (704) 334-1325 Zip:28217- Email Address: wharr 1 icense Number: 3 2,585 •ESA.cOm, WASTEWATER TREATMENT FACILITY (WWTF) INFORMATION: 1. Facility Name: Sugar Creek W WTP Permit Number: NC0024937 Owner Name: Charlotte Water RECEIVING DOWNSTREAM SEWER INFO,RC I v Permit Number(s): WQ(1d - tr not available) System Wide Collectic n S Owner Name(s) : Charlotte Nunbe ION (if different than WWTF): Downstream (Receiving) Sewer Size: 8 inch if aria t() : WQCS0000l FORM: FTA 04-16 Page 1 of5 VI. GENERAL REQUIREMENTS 1 If the Applicantis a Privately -Owned Public Utility, has a Certificate of Public Convenience and Necessity been attached'! [I] Yes flNo NA . 11 the ppiieant isa Developer ofiots :o be sold, has a tk,slopsr:str,)2:rational A2reernent ffORM, 'D1-,Vj been attached? O Yes flNO N/A 3. if the Applicant is a Home/Property Owners' Association, has ii Operational ereement (TOKNEHC(A) been attached'? Yes ONO DNIA 4. Origin of wastewater: Residential Owned 0 Residential Leased 0 School / preschool day care 0 Food and drink facilities. Li Businesses / offices factories ...heck all that apply): Li Retail (stores, centers, malls) O Retail with food preparationserv.ice O Medical / dental. / veterinary facilities 0 Church Nursing flo. .e O Car Wash El Hotel and/or Motels • Swimming Pool /Clubhouse n Swimming Pool Filter Backwash 0 Other (Explain in Attachment) .5. Nature of wastewater 10(0o Domestic/Commercial Commercial % Industrial ('ce 15A NC AC 02 1: Is there i Pretreatment Program in effect? 0 Yes 6. Has a flow reduction been approved under 1.5.ANCAC 02'1.0114Lp? If yes, provide a copy of flow reduction approval_ letter 7. Summarize wastewater generated by project.. Establishment Type (see 02-1M11411D Yes Daily Design Flow f 'Townhomes 190 garday No gall gall guI gal/ No o, of Units] Flow 3,420 GPD GPD H GPD GPD 3,420 GPD J a See 15,...\ NCACI' 021 .01 HO),1JL(cliat and:10(2j for caveats to .wastewater design flow rates minimum flow per dwelling proposed unknown non-residential d.evelopment uses; public access facilities located near high public use areas; and residential property located south or east of the Atlantic Intracoastal Waterway to be used aa.cation rentals as defined inG b Per 15A NCAC 02T ,0 I. 14(c), design flow rates for establishments not identified [in table 15A NCAC 0 1 01 1 shall be determined using available flow data, water using fixtures, occupancy or operation patterns, and other measured data, 8: Wastewater generated by project: 3 420 GPI) (per NC.A( 02T .01 14) Do not include future flows or previously permitted allocations If permitted flow is zero, indicate why: El Pump Station or Gravity Sewer where flow will be permitted in subsequent permits that comieet to this line 0 Flow has already been allocated in Permit Number: Lil Rehabilitation or replacement of existing sewer with no new flow. expected 0 Other (Explain). 1ORM. FTA 04-1.6 Page .2 of 5 VII. GRAVITY SEWER DESIGN CRITERIA (If Applicable) - 02T .0305 & MDC (Gravity Sewers): 1. Summarize gravity sewer to be permitted: Size (inches) 6 Length (feet) Material 344+,1- PVC ▪ Section II & III of the MDC for Permitting of Gravity Sewers contains information related to design criteria Section III contains information related to minimum slopes .for gravity sewer(s) ▪ Oversizing lines to meet minimum slope requirement is not allowed and a violation of the MDC VIII. PUMP STATION DESIGN CRITERIA (If Applicable) — 02T .0305 & MDC (Pump Stations/Force Mains}: COMPLETE FOR EACH PUMP STATION INCLUDED IN THIS PROJECT 1. Pump station number or name: 2. Approximate Coordinates (Decimal Degrees): Latitude: 'Longitude: - 3. Design flow of the pump station: millions. gallons per day (firm capacity) 4. Operational point(s) of the pump(s): gallons per minute at feet total dynamic head (TDH) 5, Summarize the force main to be permitted (for this Pump Station): Size (inches) Length (feet) Material 6, Power reliability in accordance with I.5A NCA 02T ,03050All: Ei Standby power source or pump with automatic activation and telemetry - 15,A NCAC 02T .0305(h)(1)(B): '1, Required for all pump stations with an average daily flow greater than or equal to 15,000 gallons per day > Must be permanent to facility Or if the pump station has an average daily flow less than 15,000 gallons per day: .Portable power source with manual activation, quick -connection receptacle and telemetry - 1,5A NCAC 02T ,0305(h)(1)(C) or 0 Portable pumping unit with plugged emergency pump connection and telemetry - .15A NCAC 02T .0305(h)(1)(C): It shall be demonstrated to the Division that the portable source is owned or contracted by the applicant (draft agreement) and is compatible with the station. If the portable power source or pump is dedicated to multiple pump stations, an, evaluation of all the pump stationsstorage capacities and the rotation schedule of the portable power source or pump, including travel timetrames, shall be provided in the case of a multiple station power outage. FORM: FTA 04-16 Page 3 of 5 SETBACKS & SEPARATIONS — (02B .0200 & 15A NCAC 02°T .0305(0): 1, Does the project comply with all separations found in I:5A INCAC xi30atA &. A2) Yes No [I* I 5A NCAC 02T.0305(1.) contain.s minimum separations that shall be provided for sewer systems: Setback Parameter* [ Storm sewers and other utilities not listed below . [ca ) 1 Water mains (venical-water over seer including in benchec - \Nate ainsihorizontal) [ Reclaimed wate ines (venical reclaimed iedoer sewer) 1r Reclaimed water lines (ho **.Any private or public water supply source, including any wells, WS-I waters of Class 1 or Class II irnjundedeervoirs used as a source of drinking water **Waters classified WS (except WS-1 or WS-IV), B. SA, ORW, IHQW, or SB from normal high water (or tide elevation) and wetlands (see item 1X.2) **Any other stream, lake, impoundment, or ground water lowering; and surface drainage ditches ny building foundation Any basement op slope of emban.kment or cuts of 2 feet orrnore vertical height Drainage systems and interceptor drains Separation Required 24 inches ren.ches) 1.8 inches Any swimming pools Final earth ra e ( d ettii.,„a , reclaimed over sewer) 10 feet 18 inches 2 feet 100 feet 10 feet 30 inches 15 \ NCAC 021.0305W contains alternatives where separations in 02T,0305( I) cannot be achieved, **Stream classifications can he identified using the Division's NC Surface \Vida Classifications wel-ipage If noncompliance with 32]-„0305(f) or to. see Section X of this application Does the project comply with separation requirements for wetlands? (50 feet of separation) Ej Yes 0 No • See the Division's draft separation requirements for situations where separation cannot he meet • No variance is required if the alternative design criteria specified is utilized in design and construction • As built documents should reference the location of areas effected 3, Does the project. comply with setbacks found in the river basin rules per 15 \ NCA 02B .02l.,[0? 0 Yes This would include Trout Buffered Streams per 15/‘ .2B.0202 4. Does the project require coverage/authorization under a 404 Nationwide or individual perrnits or 401 'Water Quality Certifications'? • Information can be obtained from the 401 & Buffet l'ern „itt ne 13rtnLh 0 Yes N. A N/A 5. Does project comply with 15.A NCAC 021/0 105(e)0) (additional permits/certifications)? \'es J No Per 15A. 021,0 0,51(c)(f1), directly related environmental permits or certification applications arc being prepared, have been applied for, or have been obtained. Issuance of this permit is contingent on issuance of dependent permits (erosion and sedimentation control plans, stomiwater management plans, etc,). 6, Does this project include any sewer collection lines that are deemed "high -priority'?" Per i 5A NCAC 02T.0402 "high -priority sewer' means "any aerial sewer, sewer contacting surface waters, siphon, or sewer positioned parallel. to streambank.s that is subject to erosion that undermines or deteriorates the sewer, Ej Yes No 0 N/A -yes, include an attachment with details for each. line, including type (aerial line, size, material, and location). High priority lines shall be inspected by the permittee or its representative at least once every six -months and inspections documented per 1.5A NCAC 02T.0403(a)(5) or the permitee's individual System -Wide Collection permit. FORM: 1IA 04-16 Page 4 of 5 X. CERTIFICATIONS: 1. Does the submitted system comply with 1 5A NCAC 02T, the Minimum Design Criteria for the Permitting of Pump Stations indForce Mains tlatest version). and the Gravitv Sewer Minimum Design Criteria Llatest version1 as applicable'? Yes 11 No If No, complete and submit the Variance/Alternative Design Request application (VADC 10-14) and supporting documents for review. Approval of the request is required prior to submittal of the Fast Track Application and supporting documents, 2. Professional E neer's Certification: attest that this application for (ProfessionalEngineers name from Application Item I has been reviewed by me and is accurate, complete and consistent with the information supplied in the plans, specifications, engineering calculations, and all other supporting documentation to the best of my knowledge. 11 further attest. that to. the best of my knowledge the proposed design has been prepared in accordance with the applicable regulations, Gravity Sewer Minimum Design Criteria for Gravity Sewers (latest 'version), and the Minimum. Design Criteria for the Fast -Track Permitting of Pump Stations and Force Mains (latest 'version). Although other professionals may have developed certain portions of this submittal package, inclusion of these materials under my signature and seal signifies that 1 have reviewed this .material and have judged it to be consistent with the proposed design. NOTE - 11.1-1 accordance with General Statutes 143-215.6A and 143-215,6B, any person who knowingly makes any false statement, representation, or certification in any application package shall be guilty of a Class 2 misdemeanor, which may include a fine not to exceed S10,000, as well as civil penalties up to $25,000 per violation. North Carolina Professional Engineer's seal, signature, and date: 3, Applicant's Certification per 15A NCAC 02T .0106(b): E.-Fre_ (Signature Authority's name & title from Application Item 1.3.) attest that this application for has been reviewed by me and is accurate and complete to the best of my knowledge. I understand that if all required parts of this application are not completed and that if all required supporting documentation and attachments are not included, this application package is subject to being returned as incomplete. I understand that any discharge of wastewater from this non - discharge system to surface waters or the land will result in an immediate enforcement action that may include civil penalties, injunctive relief, anctor criminal prosecution. 1 will make no claim against the Division of Water Resources should a condition of this permit be violated. I also understand that if all required parts of this application package are not completed and that if all required supporting infolination and attachments are not included, this application package will be returned to me as incomplete. NOTE - In accordance with General Statutes 143-215,6A and 143-215.611.„ any person who knowingly makes any false statement, representation, or certification in any application package shall be guilty of a Class 2 misd.eineanor, which may include a fine not to exceed $10,000 as; well as civil penalties up to 525,000 per violation, Signature: Date: FORM: FTA 04-16 Page 5 of 5 State of North Carolina Department of Environmental Quality y Division of Water Resources Flow Tracking/Acceptance for Sewer Extension Applications Division of Water Resources (FTSE 04-16) , Entity Requesting Allocation: Metrolina Engineering & Sury Project Name for which flow is being requested: Highland Park Townhomes More than one FTSE may be required for a single project if the owner of the WWTP is not responsible for all pump stations along the route of the proposed wastewater flow. I. Complete this section only if you are the owner of the wastewater treatment plant. a. WWTP Facility Name: McAlpine Creek, Irwin Creek, Sugar Creek b. WWTP Facility Permit #: NC0024970, NC0024945, NC0024937 c. WWTP facility's permitted flow All flows are in MGD 99.0 d. Estimated obligated flow not yet tributary to the WWTP 11.519 e. WWTP facility's actual avg. flow f. Total flow for this specific request g. Total actual and obligated flows to the facility h. Percent of permitted flow used 65.008 0.003 76.53 77.3% II. Complete this section for each pump station you are responsible for along the route of this proposed wastewater flow. List pump stations located between the project connection point and the WWTP: (A) (B) (C) (D)=(B+C) (E)=(A-D) Design Obligated, Pump Average Daily Approx. Not Yet Total Current Station Firm Flow** Current Avg. Tributary Flow Plus (Name or Capacity, * (Firm / p f), Daily Flow, Daily Flow, Obligated Available Number) MGD MGD MGD MGD Flow Capacity*** * The Firm Capacity of any pump station is defined as the maximum pumped flow that can be achieved with the largest pump taken out of service. ** Design Average Daily Flow is the firm capacity of the pump station divided by a peaking factor (p1) not less than 2.5. *** A Planning Assessment Addendum shall be attached for each pump station located between the project connection point and the WWTP where the Available Capacity is < 0. Downstream Facility Name (Sewer): Unknown Downstream Permit Number: Unknown Page 1 of 6 FTSE 04-16 III. Certification Statement: I Keri Cantrell certify to the best of my knowledge that the addition of the volume of wastewater to be permitted in this project has been evaluated along the route to the receiving wastewater treatment facility and that the flow from this project is not anticipated to cause any capacity related sanitary sewer overflows or overburden any downstream pump station en route to the receiving treatment plant under normal circumstances, given the implementation of the planned improvements identified in the planning assessment where applicable. This analysis has been performed in accordance with local established policies and procedures using the best available data. This certification applies to those items listed above in Sections I and II plus all attached planning assessment addendums for which I am the responsible party. Signature of this form indicates acceptance of this wastewater flow. Kc%; 5/24/2018 Signing Official Signature Date Page 2 of 6 FTSE 04-16 CHARLOTTE WTER May 24, 2018 Mr. Wayne Harris Metrolina Engineering & Sury 4400 Stuart Andrew Blvd. Ste. N Charlotte, NC 28217 SUBJECT: WATER AND SANITARY SEWER FLOW ACCEPTANCE HIGHLAND PARK TOWNHOMES 440 & 480 E. 33RD STREET, CHARLOTTE NC CLTWATER TRACKING# 2018755 After an analysis of the sanitary sewer system associated with the proposed design of project 2018755, Highland Park Townhomes, it was determined that there is sufficient capacity to accommodate the proposed sewer flow of 3,420 gallons per day (18 units x 190 gal/unit;) at the connection point(s) indicated on the submitted utility plan for transmission to the Sugar Creek Wastewater Treatment Plant; NPDES permit number NC0024937, for treatment. This acceptance of flow is based on the existing capacity of the designated publicly owned treatments works. Please see attached NC DEQ flow tracking form. CLTWater agrees to furnish water to the subject project. The water quality to the subject project is regulated by the State Drinking Water Act Amendments of 1986 and The Water Supply Management Plan, PWS ID # 0160010 on file with the Public Water Supply Section of NC DENR. However, CLTWater cannot guarantee a constant pressure or quality of flow. CLTWater does not expect any of the above conditions to preclude water or sewer service to the subject site. However, the applicant should understand that due to the involvement of other agencies and continuing growth of the water and sewer system, the ability to provide service for future projects cannot be guaranteed nor reserved. Connection to the CLTWater and sewer system is accepted on a first come, first served basis. The applicant should understand that this letter is not authorization to construct private water or sewer systems, as the appropriate local or State permits are required prior to construction. If the appropriate authorization to construct permits are not obtained and construction has not started within one (2) year of issuance of this flow acceptance•and pyment for any service connection(s) have not been received within (2) year of issuance of this flow acceptance. this flow acceptance approval shall be rescinded and a new flow acceptance request must be made. If you have any questions, please do not hesitate to contact me at (704) 336-1006. Sincerely, gweeer eert Ecuusen Gwendolyn Banner Engineering Assistant Charlotte Water 5100 Brookshire Blvd, Charlotte, NC 28216 charlottewater.org Operated by the City of Charlotte USGS TOPOGRAPHIC EXCERPT FROM CHARLOTTE EAST NTS Polaris 3G Map Mecklenburg County, North Carolina Highland Park Townhomes (E. 33rd St) Date Printed: 5/22/2018 3:38:38 PM is map or report is prepared or tie inven ory oi re prperywt in ecklen urg i,..ounty an is comps es rom reco e seeds, p ats, tax maps, surveys, planimetric maps, and other public records and data, Users of this map or report are hereby notified that the aforementioned public pnmary information sources should be consulted for verification, Mecklenburg County and its ma ping contractors assume no legal re,sponsibility for the information contained herein, STATIE OF NORTH CAROLINA. , COUNTY OF Mecklenbure Permit No, HOME/PROPERTY OWNERSOPERATIONAL, A.GREEM E.NT 4 This AGREEMENT made pursuant to G.S. 143-215.1 (di ) and entered into this day of 4.4110T "kJ 404.46"411.— le40 , by and between the North Carolina Environmental ',Management Commission, an agency of the State of North Carolina, hereinafter known as the COMMISSION; and Weiland Park Townhotnes I Owners Association, Inc. _ , a non-profit corporation organized and existing under and by virtue of the laws of the State of North Carolina, hereinafter known as the ASSOCIATION. WITN'ESSETH: 1. The .ASSOCIATION was formed for the purpose, among others., of handling the property, affairs and business of the development known as Ifi,uhland Park.'Townhornes (hereinafter the Development); of operating, maintaining, re -constructing and repairing the common elements of the lands and improvements subject to unit ownership, including the wastewater collection system with pumps, wa.stewater treatment works, andlor disposal facilities (hereinafter Disposal System); and of collecting dues and assessment to provide funds for such operation, maintenance, re -construction and repai, 2. The ASSOC1ATiON desires, to construct andlor operate a Disposal System to provide sanitary sewage disposal to serve the Development on said lands. 'The ASSOCIATION has applied to the COMMISSION for the issuance of a permit pursuant to G,S, 143- 215.1 to construct, maintain, and/or operate the Disposal System, 4. The Development was created subjectto unit ownership in the dwellings units, other improvements and lands through tiling of a Declaration of Unit Ownership (hereinafter Declaration), pursuant to Chapter 47C or 47F of the North Carolina General Statutes. The COMMISSION desires to assure that the Disposal System of the Development is properly constructed, maintained and operated in accordance with, law and permit provisions in order to protect the quality of the waters of the State and the public interest therein. NOW, THEREFORE, in consideration of the promisesand the benefits to be derived by each of the parties hereto, the COMMISSION and ASSOCIATION do hereby mutually agree as follows: The ASSOCIATION shall construct the Disposal System and or make any additions or modifications to the Disposal System in accordance with the permit and plans and specifications hereafter issued and ,approved by the COMMISSION, and shall thereafter properly operate and maintain such systems and facilities in accordance with applicable permit provisions and law,. 2. The ASSOCIATION shall provide in the Declaration and Association Bylaws that the Disposal System and appurtenances thereto are part of the common elements and shall thereafter he properly maintained and operated in conformity with law and the provisions of the permit for construction, operation, repair, and maintenance of the system and facilities. The Declaration and Bylaws shall identify the entire wastewater treatment, collection and disposal system as a commonelement which will receive the highest priority for expenditures by the Association except for Federal, State, and local taxes and insurance. F IIOA 11-17 Page 1 of 2 1 3. The ASSOCIATION shall provide in the Declaration and Association Bylaws that the Disposal System will be maintained out of the common expenses. In order to assure that there shall be funds readily available to repair,. maintain, or construct. the Disposal System beyond the routine operation and maintenance expenses, the 'Declaration and Association Bylaws shall provide that a fund be created out of the common expenses. Such fund shall be separate from the routine maintenance fund allocated for the facility and shall be part of the yearly budget. 4. In the event the common expense allocation and separate fund(s) are not adequate for the construction, repair, and maintenance of the Disposal System, the Declaration and Association Bylaws shall provide for special assessments to cover such necessary costs, There shall be no limit on the amount of such assessments, and the Declaration and Bylaws shall be provided such that special assessments can be made as n.ecessary at any time. 5. If a wastewater collection system and wastewater treatment andlor disposal facility provided by any city, -town, village, county,water and sewer authorities, or other unit of government shall hereinafter become available to serve the Development, the .ASSOCIATION shall take such action as is necessary to cause the existing and future wastewater of the Development to be accepted and discharged into said governmental system, and shall convey or transfer as much. of the Disposal System and such necessary easements as the governmental unit may require as condition of accepting the Development's wastewater. Recognizing that it would be contrary. to the 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 Disposal System, the ASSOCIATIONshall provide in the ASSOCIATION Bylaws that the ASSOCIATION shall not enter into voluntary dissolution without First having transferred its said. systemand facilities to some person, corporation or other entity acceptable to and approved by the COMMISSION by the issuance of a .pennit. 7. The ASSOCIATION shall not transfer, convey, assign or otherwise relinquish or release its responsibility for the operation and maintenance of its Disposal System until a permit has been reissued to the .ASSOCIATION'S successor. The agreements set forth in numbered paragraphs 1, 2, 3, 4, 5, 6, and 7 above shall be conditions of any permit issued by the COMMISSION to the ASSOCIATION for the construction, maintenance, repair and operation of the Disposal System. 9. A copy of this agreement. shall be filed at the Register of Deeds in the County(ies) where the Declarationis tiled and. in the offices of the Secretary of State of North Carolina with the Articles of Incorporation of the Association. IN WITNESS 'WITEREOF, this agreement was executed in duplicate originals by the duly authorized representative of the parties hereto on the day and year written. as indicated by each of the parties named below: FOR THE ENVIRONMENTAL MANAGEMENT COMMISSION inda Culpepp' Interim Director, Division of Water Resources FORM: HOA 11-17 (Date) k To,i'nlwrne,s I Owners Association. (Signature Print Name and -Fide Page 2 of 2 NORTH CAROLINA Department of the Secretary of State To all whom these presents shall come, Greetings: I, Elaine F. Marshall, Secretary of State of the State of North Carolina, do hereby certify the following and hereto attached to be a true copy of ARTICLES OF INCORPORATION OF HIGHLAND PARK TOWNHON ES I OWNERS ASSOCIATION, INC. the original of which was filed in this office on the 3rd day of February, 2017. Scan to verify online. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal at the City of Raleigh, this 3rd day of February, 2017. fiaidLe,Jlataliale Certification# C201702600902-1 Reference# C201702600902-1 Page: 1 of4 Verify this certificate online at http://www.sosnc.gov/verification Secretary of State SOSID: 1571057 Date Filed: 2/3/2017 8:32:00 AM Elaine F. Marshall North Carolina Secretary of State C2017 026 00902 ARTICLES OF INCORPORATION OF - HIGHLAND PARK TOWNHOMES I OWNERS ASSOCIATION, INC. Pursuant to § 55-A-2-02 of the General Statutes of North Carolina, the undersigned does hereby submit these Articles of incorporation for the purpose of .forming a nonprofit corporation. Article 1. Name. The name of the corporation is Highland Park Townhomes I Owners Association, Inc. ("Association"). Article 2. Registered Agent and Registered Office. The initial registered office of the Association is located at 3730 Glen Lake Drive, Suite 125, Charlotte, Mecklenburg County, North Carolina 28208, and the Registered Agent at such address is Charles E. Teal. Article 3. Incorporator. The incorporator is David A. Herrigel, whose address is 233 Peachtree Street, N.E., Suite I200, Atlanta, Georgia 30303. Article 4. Membership. The Association shall have members. The membership shall consist of all Owners of Units, as those terms are defined in the Declaration of Covenants, Conditions, and Restrictions for Highland Park Townhomes I, recorded or to be recorded in the office 'of the Register of Deeds for Mecklenburg County, North Carolina, as it may be amended from time to time ("Declaration"). The members shall have such voting rights as are provided for in the Declaration and in the bylaws of the Association, as they may be amended from time to time ("By -Laws"). Article 5. Dissolution. The Association may be dissolved in accordance with North Carolina General Statutes §55A-14-02, upon approval of a plan of dissolution meeting the requirements of North Carolina General Statutes §55-14-03 by the Association's board of directors ("Board") and members entitled to cast at least two-thirds (2/3) of the total votes in the Association and, during the Development and Sale Period, the written consent of the Declarant (as defined in the Declaration). In such event, the Board shall, after paying or making provision for payment of all of the liabilities of the Association, distribute any remaining assets of the Association in - accordance with the plan of dissolution so approved, as provided in North Carolina General Statutes §55-14-03(a)(3). Article 6. Definitions. All capitalized terms used herein which are not defined shall have the meaning set forth in the Declaration. Article 7. Purposes. The Association does not contemplate pecuniary gain or benefit, direct or indirect, to its members. In way of explanation and not of limitation, the purposes for which it is formed are to be and constitute the Association to which reference is made in the Declaration, to perform all obligations and duties of the Association, and to exercise Certification# C201702600902-1 Reference# C201702600902- Page:.2 of 4 all rights and powers of the Association, as set forth in the Declaration and other Governing Documents referenced therein, and as provided by law. Article 8. Powers. In furtherance of its purposes, the Association .shall have the following powers, which, unless indicated otherwise by the Declaration or the By -Laws, may be • exercised by the Board of Directors without a vote of the members: (a) all of the powers conferred upon nonprofit corporations by common law and the statutes of the State of North Carolina in effect from time to time; (b) the power to adopt, alter, and amend or repeal such By -Laws as may be necessary or desirable for the proper 'management of the affairs of the Association; provided, however, such By -Laws may not be inconsistent with or contrary to any provisions of the Declaration, these Articles of Incorporation, or North Carolina law; (c) all of the powers necessary. or desirable to perform the obligations and duties and to exercise the rights and powers set out in these Articles of Incorporation, the By -Laws, and the Declaration. The foregoing enumeration of powers shall not limit or restrict in any mariner the exercise of other and further rights and powers which may now or hereafter be authorized by the Declaration or permitted by Iaw.. • Article 9. Board of Directors. The business and affairs of the Association shall be conducted, managed, and controlled by its Board. The initial Board shall be comprised of the following three persons: Peter T. Harakas Brantley McConkey Julianne Chandler 3730 GIen Lake Drive, Suite 125, Charlotte, NC 28208 3730 GIen Lake Drive, Suite 125, Charlotte, NC 28208 3730 Glen Lake Drive, Suite 125, Charlotte, NC 28208 The number, qualification, and term of office of directors and the method of selection, removal and filling of vacancies on the Board shall be as set forth in the By -Laws. The Board may delegate its operating authority to such corporations, individuals, and committees as it, in its discretion, may determine. Article 10. LiabiIity of Directors. No person who is serving or who has served as a director of the Association shall be personally liable to the Association or any of its members for monetary damages for breach of duty as a director, except for liability with respect to (i) acts or omissions that the director at the time of such breach knew or believed were clearly in conflict with the best interests of the Association, (ii) any transaction from which the director derived an improper personal benefit or (iii) acts or omissions with respect to which the North Carolina Nonprofit Corporation Act does not permit the Iimitation of liability. As used herein, the term "improper personal benefit" does not include a director's reasonable compensation or other reasonable incidental benefit for or on account of his service as a director, officer, employee, independent contractor, attorney, or consultant of the Association. No amendment or 'repeal of 2 Certification# C201702600902-1 Reference# C201702600902- Page: 3 of 4 this article, nor the adoption of any provision to these Articles of Incorporation inconsistent with this article, shall eliminate or reduce the protection granted herein with respect to any matter that occurred prior to such amendment, repeal or adoption. Article 11. Amendments. These Articles of Incorporation may be amended only upon a resolution duly adopted by the Board of Directors, the affirmative vote of members holding at least two-thirds (2/3) of the total Association vote, and the consent of Declarant, so long as Declarant owns any property subject to the Declaration or which may be unilaterally subjected to the Declaration by Declarant. No amendment of these Articles of Incorporation shall be in conflict with the Declaration. Article 12. Principal Office. The initial principal office of the Association is in Mecklenburg County and its street address is 3730 Glen Lake Drive, Suite 125, Charlotte, NC 28208. The mailing address is the same. IN WITNESS WHEREOF, the undersigned Incorporator has executed these Articles • of Incorporation this the .' day of %11.0....cari i , 2017, to be effective upon filing with the Department of the Secretary of State for the State of North Carol • David A. Herri carp Address of Incorporator: Hyatt & Stubblefield, P.C. 233 Peachtree Street, N.E., Suite 1200 Atlanta, Georgia 30303 • 553001/Highland Park Townhomesfeorp/Arts/ 3 Certification# C201702600902-1 Reference# C291702600902. Page: 4 of 4 IL NORTH CAROLINA Department of the Secretary of State To all whom these presents shall come, Greetings: I, Elaine F. Marshall, Secretary of State of the State of North Carolina, do hereby certify the following and hereto attached to be a true copy of ARTICLES OF INCORPORATION OF HIGHLAND PARK TOWNHOMES I OWNERS ASSOCIATION, INC. the original of which was filed in this office on the 3rd day of February, 2017. Scan to verify online. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal at the City of Raleigh, this 3rd day of February, 2017. 'law, J ‘fai,alaze Certification# C201702600902-1 Reference# C201702600902-1 Page: 1 of 4 Verify this certificate online at http:/lwww.sosnc.gov/verification Secretary of State SOSID: 1571057 Date Filed: 2/3/2017 8:32:00 AM Elaine F. Marshall North Carolina Secretary of State C2017 026 00902 ARTICLES OF INCORPORATION OF• HIGHLAND PARK TOWNHOMES I OWNERS ASSOCIATION, INC. Pursuant to § 55-A-2-02 of the General Statutes of North Carolina, the undersigned does hereby submit these Articles of Incorporation for the purpose of .forming a nonprofit corporation. Article 1. Name. The name of the corporation is Highland Park Townhomes I Owners Association, Inc. ("Association"). Article 2. Registered Agent and Registered Office. The initial registered office of the Association is located at 3730 Glen Lake Drive, Suite 125, Charlotte, Mecklenburg County, North Carolina 28208, and the Registered Agent at such address is Charles E. Teal. Article 3. Incorporator. The incorporator is David A. Herrigel, whose address is 233 Peachtree Street, N.E., Suite 1200, Atlanta, Georgia 30303. Article 4. Membership. The Association shall have members. The membership shall consist of all Owners of Units, as those terms are defined in the Declaration of Covenants, Conditions, and Restrictions for Highland Park Townhomes I, recorded or to be recorded in the office of the Register of Deeds for Mecklenburg County, North Carolina, as it may be amended from time to time ("Declaration"). The members shall have such voting rights as are provided for in the Declaration and in the bylaws of the Association, as they may be amended from time to time ("By -Laws"). Article 5. Dissolution. The Association may be dissolved in accordance with North Carolina General Statutes §55A-14-02, upon approval of a plan of dissolution meeting the requirements of North Carolina General Statutes §55-14-03 by the Association's board of directors ("Board") and members entitled to cast at least two-thirds (2/3) of the total votes in the Association and, during the Development and Sale Period, the written consent of the Declarant (as defined in the Declaration). In such event, the Board shall, after paying or making provision for payment of all of the liabilities of the Association, distribute any remaining assets of the Association in accordance with the plan of dissolution so approved, as provided in North Carolina General Statutes §55-14-03(a)(3). Article 6. Definitions. All capitalized terms used herein which are not defined shall have the meaning set forth in the Declaration. Article 7. Purposes. The Association does not contemplate pecuniary gain or benefit, direct or indirect, to its members. In way of explanation and not of limitation, the purposes for 'which it is formed are to be and constitute the Association to which reference is made in the Declaration, to perform all obligations and duties of the Association, and to exercise Certification# C201702600902-1 Reference# C201702600902- Page: 2 of 4 all rights and powers of the Association, as set forth in the Declaration and other Governing Documents referenced therein, and as provided by law, Article 8. Powers. In furtherance of its purposes, the Association shall have the following powers, which, unless indicated otherwise by the Declaration or the By -Laws, may be exercised by the Board of Directors without a vote of the members: (a) all of the powers conferred upon nonprofit corporations by common law and the statutes of the State of North Carolina in effect from time to time; (b) the power to adopt, alter, and amend or repeal such By -Laws as may be necessary or desirable for the proper 'management of the affairs of the Association; provided, however, such By -Laws may not be inconsistent with or contrary to any provisions of the Declaration, these Articles of Incorporation, or North Carolina Iaw; (c) all of the powers necessaryor desirable to perform the obligations and duties and to exercise the rights and powers set out in these Articles of Incorporation, the By -Laws, and the Declaration. The foregoing enumeration of powers shall not limit or restrict in any manner the exercise of other and further rights and powers which may now or hereafter be authorized by the Declaration or permitted by law.. - Article 9. Board of Directors. The business and affairs of the Association shall be conducted, managed, and controlled by its Board. The initial Board shall be comprised of the following three persons: Peter T. Harakas Brantley McConkey Julianne Chandler 3730 Glen Lake Drive, Suite 125, Charlotte, NC 28208 3730 Glen Lake Drive, Suite 125, Charlotte, NC 28208 3730 Glen Lake Drive, Suite 125, Charlotte, NC 28208 The number, qualification, and term of office of directors and the method of selection, removal and filling of vacancies on the Board shall be as set forth in the By -Laws. The Board may delegate its operating authority to such corporations, individuals, and committees as it, in its discretion, may determine. Article 10. Liability of Directors. No person who is serving or who has served as a director of the Association shall be personally liable to the Association or any of its members for monetary damages for breach of duty as a director, except for liability with respect to (i) acts or omissions that the director at the time of such breach knew or believed were clearly in conflict with the best interests of the Association, (ii) any transaction from which the director derived an improper personal benefit or (iii) acts or omissions with respect to which the North Carolina Nonprofit Corporation Act does not permit the limitation of Iiability. As used herein, the term "improper personal benefit" does not include a director's reasonable compensation or other reasonable incidental benefit for or on account of his service as a director, officer, employee, independent contractor, attorney, or consultant of the Association. No amendment or 'repeal of 2 Certification# C201702600902-1 Reference# C201702600902- Page: 3 of 4 this article, nor the adoption of any provision to these Articles of Incorporation inconsistent with this article, shall eliminate or reduce the protection granted herein with respect to any matter that occurred prior to such amendment, repeal or adoption. Article 11. Amendments. These Articles of Incorporation may be amended only upon a resolution duly adopted by the Board of Directors, the affirmative vote of members holding at least two-thirds (2/3) of the total Association vote, and the consent of Declarant, so long as Declarant owns any property subject to the Declaration or which may be unilaterally subjected to the Declaration by Declarant. No amendment of these Articles of Incorporation shall be in conflict with the Declaration. Article 12. Principal Office. The initial principal office of the Association is in Mecklenburg County and its street address is 3730 Glen Lake Drive, Suite 125, Charlotte, NC 28208. The mailing address is the same. IN WITNESS WHEREOF, the undersigned Incorporator has executed these Articles • of Incorporation this the as day of ` ►w,1;1.r).-.1 , 2017, to be effective upon filing with the Department of the Secretary of State for the State of North Carol David A. Herri,, Address of Incorporator: Hyatt & Stubblefield, P.C. 233 Peachtree Street, N.E., Suite 1200 Atlanta, Georgia 30303 55300 ]/Highland Park Tawnhotne5korp/Arts/ 3 Certification C201702600902-1 Reference# C201702600902= Page: 4 of 4 '` B31614 - P505 FOR Fredrick REGISTRATION Mecklenburg REGISTER OF DEED ri K:7 IIRR p01 32:28 NC XNs rNUE►u : $2se 50e -Sss T tf 2017028474 "IIii/l//II/ill// pHTSL 21728 Upon recording, please return to: CCH-Hi hlandMill, LLC d, -all o ,,, 1 INDEXING NOTE TO CLERK'S OFFICE: Please index in Grantor index under "CCH-Highland Mill, LLC" Please index in Grantee index under "Highland Park Townhomes I," and "Highland Park Townhomes I Owners Association, Inc." DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR HIGHLAND PARK TOWNHOMES I THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF THE FLAG OF THE UNITED STATES OF AMERICA OR STATE OF NORTH CAROLINA. THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF POLITICAL SIGNS. EXCEPT AS EXPRESSLY PERMITTED IN SECTION 3.4 OR APPROVED PURSUANT TO ARTICLE IV OF THIS DECLARATION, NO PERSON SHALL DISPLAY ANY FLAG (INCLUDING THE FLAG OF THE UNITED STATES OR THE STATE OF NORTH CAROLINA) OR ANY SIGN OF ANY KIND (INCLUDING, WITHOUT LIMITATION, POLITICAL SIGNS) ON ANY LOT. B31614 - P506 - TAB ' OF CONTENTS - SeSection Faye 1. GOVERNING DOCUMENTS;INTERPRFTATIf7N .................... 2, DESCRIPTION OF UNITS. . 3 3. DESCRIPTION OF COMMON AREAS AND LIMITED COMMON .4 4. ASSOCIATION MEMBERSHIP AND VOTING RIGHTS............,................................_...5 5. LIABILITY FOR COMMON EXPENSES; ASSESSMENTS; 7".4XES.a......................c,...,5 6. USE OF UNITS AND COMMON AREAS, .11 7. LEASING AND TRANSFER OF UNITS,....,..a...............................................................16 8. EASEMENTS.. ..18 9. MAINTENANCE RESPONSIBILITY...20 10. INSURANCE AND CASUALTY LOSSES..................................................................23 11. ARCHITECTURAL CONTROLS. . . . .2,7 I2. EXPANSION OF HIGHLAND PARK TOWNHOMES L,..,,....,W.....................................„30 13. DECLARANT RIGHTS..30 14.. ASSOCIATION RIGHTS AND POGVERS.......................................W.., �.,.........,..��.....33 15. MORTGAGEE RIGHTS. .35 l6. EMINENT DOMAIN..........................................................................................................35 17. COMPLIANCE AND ENFORCEMENT..........................................................................36 18, DISPUTE RESOLUTION...39 1 AMENDMENTS ..................................................................................................................42 43. GENERAL, PROVISIONS. .42 - EXHIBITS Exhibit Legal Description of Submitted Property ,,A„ Legal Description of Expansion Property......................................................................................8„ Rules — By -Laws of Highland Park Townhon7es [ Owners Association, Inc ........................................„. "D" B31614 - P508 DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR HIGHLAND PARK TOWNHOMES I INTRODUCTION Highland Park Townhomes lis a neighborhood oftownhome residences located in the City of Charlotte, Mecklenburg County, North Carolina. CCH-Highland Mill, LLC, a North Carolina limited liability company, as the initial owner and developer of Highland Park Townhomes I, has established this Declaration of Covenants, Conditions, and Restrictions for Highland Park Townhomes 1 (as may be amended from time to time, the "Declaration') to provide for the development and expansion of the community and the long-term operation, management, maintenance, and preservation of the twnhomes and related facilities. Highland Park Townhomes IOwners Association, Inc. ('Association') has been organized as a nonprofit corporation under North Carolina law to administer this Declaration. Each owner, upon acquiring tide to a townhome residence described in this Declaration, automatically becomes a member of the Association and remains a member as long as he or she continues to hold title to such residence. The rights and obligations of membership in the Association are described in this Declaration, in the Associalion'sArticles oflncorporationftled with the Secretary of State for the State ofNorth Carolina ('Articles'), and in the By -Laws ofthe Association attached to this Declaration as Exhibit "D" ("By -Laws'), each as may be amended from time to time. This document establishes a residential planned community under the North Carolina Planned Community Act, N. C.G.S § 47F-1-101, et seq. (as it may be amended, the "Act'). DECLARATION OF INTENT CCH-Highland Mill, LLC, a North Carolina limited liability company, on behalf of itself, its successors and assigns ("Declarant"), as the owner of the real property described on Exhibit "A", intends by executing and recording this Declaration to submit such property to the terms of this Declaration and to the jurisdiction of the Association. Such property, and any additional property that is hereafter submitted to the terms of this Declaration by supplement or amendment ("Highland Park Townhomes I") shall be owned, held, used, conveyed, and encumbered subject to the terms of this Declaration, as it may be amended. This Declaration shall be binding upon Declarant, the Association, and the future owners of any portion of such property, their respective heirs, successors, successors -in -title, and assigns, and any other person that now or hereafter holds any interest in any portion of such property. 1 B31614-P507 AcL..... ...—...~..~..,—...—...... ....... -.\ 6T1ic[us... —..-.--_---....... ........ -| Associu600-------.............. ____ },2 Bound Parties . Claim 39 ............ --..—......... —.—... -.. > .]9 Common Area.~__— ...................... ___ 4 Common Exneuuem..... .............. ..... ....... ~.5 Cost Shariog��m�mc�. �l\ —| Declarant Control Period —............ ---_ 31 DefecL—........ —.—_—_..—...... .--'.3) Development and Sale 2 Expansion yropurty----.-------]0 General &ssemomen,s—..-----.-..—....6 Governing � Documents ... —_--.-----.2 8iob�ndPark Tovnuhoo�em {_------. l Joint Facilities. ..... .—......... ......... .—_—.)4 Limited Common Areax---^................... 4 LDKD... ...._...—.-_-..'--....--.~.-43 ........ .—... .......... ..4O O....... -...... .-....... ......... ....... 18 Qvvoec_.—...... .---.—_—...... ____ ...... 2 Party Wall. ..—...--._---.^.......... 3) Person .--.---..----....... —........... � 9lat.---_-..-....... ........... ~.--....... �3 .....48 SoecW Assessments ...... —...... --...... ­0 Spec ido&ssessincob.......... --_...... 6 Unit............ ____ ....... ................. —...'.—Z 2 B31614 - P509 1. GOVERNING DOCUMENTS; INTERPRETATION. I. 1. Governing Documents. The governing documents for Highland Park Townhomes I consist of this Declaration, including the attached exhibits, the Articles of Incorporation and By -Laws, such rules as the Association may adopt pursuant to this Declaration and the By -Laws, all as they may be amended from time to time ("Governing Documents"). 1.2. Definitions. Generally, terms used in the Governing Documents are intended to have their normal, generally accepted meanings. Unless the context requires a different meaning, capitalized terms used in this Declaration have the meaning described in this section or in the paragraph where they first appear in bold print. An index to defined terms may be found immediately following the Table of Contents. (a) Association: Highland Park Townhomes I Owners Association, Inc., a North Carolina nonprofit corporation, its successors and assigns. (b) Development and Sale Period: The period during which Declarant owns any Unit for development and/or sale in the ordinary course of its business or has the right to expand Highland Park Townhomes I pursuant to Section 12. (c) Owner: The holder, whether one or more persons, of a fee simple or undivided fee simple interest in the title to a Unit as shown on the records of the office of the Register of Deeds for Mecklenburg County; North Carolina, except that the holder of a mortgage or similar security instrument (a "Mortgagee") is not considered an "Owner." If title to a Unit is held in the names of two or more persons, the term "Owner" refers to all co -owners collectively, and they all share the rights of an Owner and are jointly and severally responsible for the obligations of an Owner under the Governing Documents and the Act. (d) Person: An individual, a corporation, a partnership, a limited liability company, or any other legal entity. (e) Unit: Each separately identified lot shown on a recorded subdivision map or plat of any portion of Highland Park Townhomes I, which lot is improved or intended to be improved with an attached dwelling for use and occupancy as residence for a single family. Any unimproved parcel of land submitted to this Declaration which is intended for further subdivision into more than one Unit shall be deemed to be a single Unit until a subdivision plat is recorded dividing it into more than one Unit. A Unit shall include the lot and any improvements on the lot. 1331614 - P510 DESCRIPTION OF UNITS. 21. Location and Boundaries of Units. A plat of survey ("Piat") deptctin.g the vertical (perimeter) boundaries of each Unit shall be recorded in the office of the Register of Deeds for Mecklenburg County, North Carolina, prior to conveyance of the Unit for residential occupancy. The Units shall have no horizontal (upper and lower) boundaries, The Unit shall include all improvements lying within the vertical boundaries as shown on the Plat, 2 2. Party Walls Each wall built as a part of the original construction on the Units that serves and/or separates any two adjoining Units, and any replacements thereof, shall constitute a "Party Wall". To the extent not inconsistent with the provisions. of this Section, the general rules of law regarding party walls and liability for property damage due to negligence or willful acts or omissions shall apply to Party Walls within Highland Park 'Townhomes I. Any dispute arising concerning a Party Wall shall be handled in accordance with the provisions of Section 18. It is intended that each Party Wall be constructed on the common boundary between adjacent Units so that each Unit extends to the center line of such Party Wall. However, it is recognized that errors may occur in the actual placement of a Party Wall in the course of construction, or that improvements may shift due to normal settlement, so that. the Party Wall is placed to a greater extent, or entirely, on one Unit. In such case, there shall exist an easement for encroachment ()Tale improvements constructed primarily on the Other Unit, as provided in Section 8,3, The Owners of the Units separated by a Party Wall shall each be entitled to use the Party Wall for support of their respective dwellings and shall have a cross -easement over that portion of the adjacent Unit upon which the Party Wall or any portion thereof is constructed for maintenance and joint use of the Party Wall, and for maintenance of any chutes, pipes, ducts, lines, or other apparatus located within the Party Wall as part of the original construction of the Unit, and any replacements thereof, No Owner shall make any alteration to a Party Wail that would affect the use or support of the adjacent Unit without the prior consent of the Owner of the adjacent Unit. To the extent that any necessary repair or rebuilding of a Party Wall affects portions of the Party Wall lying on both Units, it shall be the joint responsibility of the Owners of the Units sharing use of the Party Wall to have such work performed. and to pay the cost thereof, which shall be shared equally between them unless the need tbr repair or rebuilding is the result of the willful acts or omissions of one Owner, in which case such Owner shall bear the entire cost. If any repairs or rebuilding are required only to a portion of the Party Wall lying wholly within the boundaries of one Unit, then. the Owner of that Unit shall pay the entire cost of such repair. Either Owner may, upon written notice to the other, perfomi or cause the necessary maintenance or repair to be performed or, within 3,0 days after receipt of written evidence of the total cost incurred, the other Owncr shall reimburse the Owner who has incurred such cost for such portion thereof as is the nonperforming Owner's responsibility under this paragraph. 3 B31614 - P511 The right of any Owner to contribution from any other Owner under this Section shall be appurtenant to the land and shall pass to such Owner's successors -in -title. 2.2. Subdivision and Combination of Units. (a) No Person other than Declarant shall subdivide any Unit. (b) If two adjoining Units are owned by the same Person, the Owner may combine such Units into a single living unit by creating doorways or other openings in the Party Wall separating such Units, so long as such modification meets all applicable building codes and ordinances and does not alter the exterior appearance of the Units; however, the Units shall continue to be counted as separate Units for purposes of voting and assessment under the Governing Documents. 3. DESCRIPTION OF COMMON AREAS AND LIMITED COMMON AREAS. Any portion of Highland Park Townhomes I which is owned by the Association, and any easements granted or reserved to the Association, shall constitute "Common Area" of the Association. Generally, the Common Areas are intended for the benefit and use of the occupants of all Units; however, some portions of the Common Areas are designated as "Limited Common Areas," which means they are assigned for the exclusive use of the Owner and occupants of less than all of the Units. To the extent that any of the following lie outside of the boundary of a Unit or otherwise encroach upon the Common Area, the portion of the Common Area upon which they lie or encroach shall be assigned as Limited Common Area (a) any mailbox which the Association's board of directors ("Board") assigns for use by the occupants of a particular Unit shall be Limited Common Area of the Unit to which it is assigned; and (b) any pipes, lines, cables, conduits, or other equipment or facilities, including any portion of any air conditioning or heating system, exclusively serving a particular Unit, shall be Limited Common Area of the Unit or Units which they serve, regardless of whether such equipment or facilities lie within the Common Area or other Units. Declarant may convey to the Association as Common Area, and the Association shall accept, fee title, leasehold, easements, or other property interests in any real property, improved or unimproved, described in Exhibits "A" or "B." Upon Declarant's written request, the Association shall convey or reconvey to Declarant (or quitclaim any interest in) any portion of the Common Area conveyed by Declarant in error or needed by Declarant to make minor adjustments in property lines, subject to such membership approval as may be required by the Act. Subject to the foregoing, the Common Area shall be owned by the Association and no Owner or other Person shall seek any judicial partition of the title and ownership of the Common Area. The Association shall be responsible for management, operation and control of the Common Area, subject to any covenants and restrictions set forth in the deed or other instrument 4 B31614 - P512 transferring such property to the ASSOCiatiOn. The Board by resolution„ may adopt such reasonable rules regulating use of the Common Area as it deems appropriate. The Association may permit use of the Common Area facilities by persons other than Owners and occupants of Units and may charge use fees, in such amount as the Board may establish, for such use. 4. ASSOCIATION MEMBERSH .P AND VOTING RIGHTS. Each Person who holds record title to a Unit is automatically. a member of the Association and remains a member as long as such Person holds title to the Unit. Upon sale or other transfer oftitie to the Unit, the membership automatically passes to the new Owner. Each Unit is allocated one equal vote, which may be exercised by any Owner or by the Owner's proxy as described in the By -Laws, on all matters upon which members of the Association are entitled to vote under the Governing Documents. 5. LIABILITY FOR COMMON EXPENSES; ASSESSMENTS; TAXES. 5.1. Allocation of Liability for Common EA t enses (a) The "Common Expenses" of the Association include the costs which the Association incurs: (i) in maintaining, repairing, and replacing those areas and improvements that are the Association's maintenance responsibility under the Governing Documents, including reasonable reserves for repairs and replacements; (ii) in connection with the ownership, alteration, and improvement of the Common Area: (iii) for insurance obtainedby the Association pursuant to Section 10, including any insurance deductibles which are not otherwise assessed to a specific Unit pursuant to this Declaration; (iv) in providing utilIts and similar services to the Common Area and, to the extent not separately metered or charged to the Units, to .the Units; in providing other SC1OCCS to Highland Park Townhornes 1; and (vi.) in administering the Association and enforcing this Declaration and exercising its powers and performing its responsibilities under the Governing Documents, including management and professional fees. (b) Except as otherwise specifically provided in the Governing Documents, the Common Expenses. shall be allocated equally among all Units subject to assessment under this Declaration, except that: B31614 - P513 (i) in the discretion of the Board, premiums for insurance on Units may be allocated on the basis of replacement cost or insured value as determined by the insurer, or on another basis reflecting increased charges for coverage on particular Units; (ii) Association expenses, including attorneys fees and court costs and fines imposed pursuant to Section 17.2, occasioned by a violation of the Governing Documents by, or the negligence or misconduct of, the Owner or occupant of any Unit, or their guests, may be assessed against the Owner of such Unit or its occupant; and (iii) in the Board's discretion, any expenses incurred by the Association for the benefit of less than all Units, such as expenses of services provided at the option of a Unit Owner and expenses in connection with the maintenance, repair, replacement, operation, or insurance of Limited Common Areas which are unique to certain Units, may be assessed against only the benefited Units. The Board's failure or election not to exercise its authority under this Section shall not be grounds for any action against the Association or the Board and shall not constitute a waiver of the Board's right to exercise its authority under this Section in the future with respect to any expenses, including an expense for which the Board has not previously exercised its authority under this Section. No reallocation of liability for Common Expenses pursuant to this Declaration shall affect any Common Expense assessments or installment thereof due and payable prior to such reallocation. 5.2. Assessment Authority. (a) ' Purposes. • There are.hereby created, and the Association is hereby authorized to levy, assessments for expenses incurred or anticipated to be incurred by the Association in performing its responsibilities and exercising its rights and powers under the Governing Documents. (b) Types of Assessments. There shall be four types of assessments: (i) "General Assessments ," which are assessments levied on all Units subject to assessment under Section 5.2 to fund Common Expenses for the general benefit of all Units; (ii) "Special Assessments," as described in Section 5.4; and (iii) "Specific Assessments," as described in Section 5.5. Each Owner, by accepting a deed or entering into a recorded contract of sale for any portion of the Community, is deemed to covenant and agree to pay these assessments. Such assessments shall commence at the time and in the manner set forth in Section 5.6. (c) Personal Obligation and Lien. Each Owner, by accepting a deed or entering into a recorded contract of sale for a Unit within Highland Park Townhomes I, is deemed to covenant and agree to pay all assessments authorized in the Governing Documents. All assessments, together with interest (computed from its due date at a rate of 10% per annum or such higher rate as the Board may establish by resolution, not to exceed 18% per annum), late charges as determined by Board resolution (subject to the limitations of North Carolina law), costs, and reasonable attorneys fees, shall be the personal obligation of each Owner, and a charge and continuing lien upon each Unit as provided in Section 5.7, until paid in full. Upon a transfer of 6 B31614 - P514 title to a Unit, the grantee shall be jointly and severally liable for any assessments and other charges due at the time of conveyance, except that a Mortgagee or other purchaser who obtains. title to a, Unit upon the foreclosure of a first priority Mortgage of record shalt not be liable for the assessments against the Unit which became due prior to such Mortgagee's or purchaser's acquisition of title to the Unit. For purposes of the foregoing sentence, "acquisition of title" shall be deemed to occur upon the earlier of: (i) the recording of a deed conveying title; or (ii) the time at which the rights of the parties are fixed following the foreclosure of such Mortgage,. Failure of the Board to fix assessment amounts or rates or to deliver or mail each Owner an assessment notice shall not be deemed a waiver, modification, or a release of any Owner from the obligation to pay assessments. In such event, each Owner shall continue to pay General Assessments on the same basis as during the last year for which an assessment was made, if any, until a new assessment is levied, at which time the Association may retroactively assess any shortfall. No Owner may exempt himself from. liability for assessments by non-use of Common Area, abandonment of his or her Unit, or any other means, The obligation to pay assessments is a separate and independent covenant on the part of each Owner.. No diminution or abatement of assessments or setoff shall be claimed or allowed for any allegedfailure of the Association or Board to take some action or perform some function required of it, or for inconvenience or discomfort arising from the making of repairs or improvements, or from any other action it takes, Within '10 business days after receipt of a written request therefor, the Association ,shall furnish to any Owner liable for any type of assessment a certificate in writing signed by an officer or duly authorized agent of the Association setting forth the amount of any unpaid assessments or other charges levied on the Unit. Such certificate shallbe binding on the Association and every Owner. The Association may require the advance payment of a reasonable processing fee for the issuance of such certificate. (d) Declarant's Obligations r Assessments, Declarant shall be liable for assessments on its unsold Units; however, during the 'Development and Sale Period, Declarant may elect to satisfy its obligation to pay General Assessments on any Units that it owns either in the form of cash or by "in kind" contributions of services or materials, or by a combination of these, provided that the fair market value of any "in kind" contributions is fair and reasonable to the Association. The value of any "in kind" contributions shall be documented in the Association records. 5.3. Adoption and Ratification of Budtzets• Annuale . Rates, (a) Preparation of Budgets, Al least 60 days before the beginning of each fiscal year, the Board shall prepare a budget of the estimated Common Expenses for the coming year. The estimated expenses in each budget shall include, in addition to any operating reserves, a reasonable contribution to a reserve fund for repair and replacement of any capital items to be maintained as a Common Expense. In determining the, amount of such reserve: contribution, the Board shall take into account the number and nature of replaceable assets, the expected useful life of each, the expected repair or replacement cost, and the contribution required to fund the projected need by an annual contribution over the useful life of the asset, 7 B31614 - P515 Each budget shall also reflect the sources and estimated amounts of funds to cover such expenses, which may include any surplus to be applied from prior years, any income expected from sources other than assessments levied against the Units, and the amount to be generated through the levy of General Assessments. Declarant may, but shall not be obligated to, reduce the amount of assessments that would otherwise be required to fund any budget by payment of a subsidy to the Association for any fiscal year. Payment of a subsidy in any fiscal year shall not obligate Declarant to continue payment of such subsidy in future years, unless otherwise provided in a written agreement between the Association and Declarant. Any such subsidy may be treated as a contribution, an advance against future assessments due from Declarant, or a loan, in Declarant's discretion; provided, any such subsidy and the characterization thereof shall be conspicuously disclosed as a line item in the income portion of the applicable budget. In addition, Declarant may loan funds to the Association to cover any budget shortfall or Common Expenses which are due prior to the due date of assessments under the applicable budget; provided, any such loans and the debt service shall also be disclosed in the applicable budget. Declarant may charge and collect interest on the outstanding principal balance of any loan at a rate not to exceed the greater of 10% per annum or two percentage points over the prime rate published by the Wall Street Journal on the date of such loan, such interest rate to be set forth in a promissory note executed on behalf of the Association. (b) Calculation of General Assessments. Upon determining the total amount of income required to be generated through the levy of General Assessments to fund the Common Expense budget, the Board shall establish the General Assessment at an equal rate per Unit. The Board shall give notice to the Owners of such budget and assessment as provided in Section 5.3(c). (c) Notice of Budget and Assessment; Ratification. Within 30 days following the Board's adoption of any new or revised budget under Section 5.3(a), the Board shall send a summary of the applicable budget, together with notice of the amount of the General Assessment to be levied pursuant to such budget, to each Owner to be assessed thereunder. The budget shall be accompanied by notice of the date, time and location of a meeting to consider ratification, which meeting shall be set by the Board to occur no less than 10 nor more than 60 days after mailing of the budget summary and notice. The notice shall include a statement that the meeting may be held and the budget may be ratified without a quorum being present. The budget shall be deemed ratified unless rejected at the meeting by Owners of at least 75% of the total number of Units then subject to the Declaration. If any proposed budget is rejected or the Board fails for any reason to determine the budget for any year, then the budget most recently in effect shall continue in effect until a new budget is determined. (d) Budget Revisions. The Board may revise the budget and adjust the General Assessment from time to time during the year, subject to the notice and ratification requirements set forth above. 8 631614 - P516 5.4. Special Assessments In addition to other authorized assessments, the Association may levy Special Assessments from time to time to cover unbudgeted expenses or expenses in excess of those budgeted under Section 5.3. Any such Special Assessment may be levied against the eri.tire membership, ifsuch Special Assessment is for general Common Expenses. Except as otherwise specifically provided in Section 10 and as may be required to fund deficits under the General Budget due to delinquencies in payment of assessments, any Special Assessment shall require the affirmative vote or written consent of Owners entitled to cast more than 50% of the total votes allocated to Units which will be subject to such Special Assessment, and during the Development and Sale Period, the written consent of Declarant, Except as otherwise provided in Section 5.1, Special Assessments shall be levied equally on all Units subject to such assessment. 5.5. Specific Assessments. The Association shall have the power to levy Specific Assessments against a particular Unit or group of Units to cover expenses described in Section 5.1.(b)(i), (ii), and (iii), for monetary fines assessed pursuant to Section I 7.2, for optional or special services provided to particular Units or Owners, and as otherwise specifically authorized under the Governing Documents. Specific .Assessments for special services may be levied in advance of the provision of the requested service. 5.6, Payment ofAssessrnents, Except as otherwise provided herein, the obligation to pay assessments shall commence as to each Unit on the first day of the month following: (a) the month in which the Unit is made subject to this Declaration, or (b) the month in which the Board first determinesa budget and levies assessments, pursuant to Section 5.3, whichever is later: The first annual General Assessment levied on each Unit shall be adjusted according to the nutnber of months remaining in the fiscal year at the time assessments commence on that Unit, Assessments shall be paid in such manner and on such dates as the Board may establish. The Board may require advance payment of assessments at closing of the transfer of title to a Unit and impose special requirements for Owners with a history of delinquent payment. If the Board so elects, assessments may be paid in two or more installments. Unless the Board otherwise provides, the General .Assessment shall be due and payable in advance on the first, day of each month. If any Owner is delinquent in paying any assessments or other charges levied on his Unit, the Board may require the outstanding balance on all assessments to be paid in full immediately or it may, in its discretion, permit payment of the outstanding balance in installments. Neither thc Association nor the Owner is obligated to accept any proposed installment payment schedule. The Board may add reasonableadministrative fees and costs for accepting and processing installments to the outstanding balance and inelucle them in the installment ,payment schedule; however, such costs may include reasonable attorneys fees only if the Owner has first been given notice of the Board's intention to recover attorneys fees and court costs, as required by Section 47F-3-116 of the Act, and given 15 days from the mailing of the notice to pay the outstanding balance without 9 B31614 - P517 attorneys fees and court costs. The notice shall also provide the name and telephone number for a representative of the Association with whom the Owner may speak to discuss a payment schedule. 5.7. Lien for Assessments. (a) Subject to North Carolina law, as it may be amended, if any assessment or installment thereof remains unpaid 30 days or more after the due date, the Association shall, upon filing a claim of lien in the office of the Register of Deeds of Mecklenburg County, North Carolina conforming to the requirements of Section 47F-3-1 16 of the Act, have a lien against each Unit in favor of the Association to secure payment of assessments and other fees and charges due to the Association as authorized by the Act or the Governing Documents or as the result of any arbitrator's, mediator's or judicial decision, as well as interest, late charges, and costs of collection (including attorneys fees and court costs, if and to the extent authorized under Section 5.6 and the Act). Subject to the limitations of North Carolina law, such lien shall be superior to all other liens, except (i) the liens of all real estate taxes, governmental and other assessments and charges which by law would be superior, and (ii) the lien or charge of any recorded first Mortgage (meaning any recorded Mortgage with first priority over other Mortgages) made in good faith and for value and recorded prior to the filing of the claim of lien. (b) If an assessment against a Unit remains unpaid for 90 days or more and the Board votes to proceed with foreclosure of the Association's lien on that particular Unit, the Association may foreclose its lien through judicial or non judicial foreclosure proceedings in accordance with North Carolina law, as it may be amended, except that any lien securing only fines and/or service or collection fees may be foreclosed only by judicial foreclosure. (c) The Association may bid for the Unit at the foreclosure sale and acquire, hold, lease, mortgage, and convey the Unit. While a Unit is owned by the Association following foreclosure: (i) no right to vote shall be exercised on its behalf; (ii) no assessment shall be levied on it; and (iii) each other Unit shall be charged, in addition to its usual assessment, its pro rata share of the assessment that would have been charged such Unit had it not been acquired by the Association. The Association may sue for unpaid assessments and other charges authorized hereunder without foreclosing or waiving the lien securing the same, in addition to pursuing any and all remedies allowed by law to enforce the lien. (d) Sale or transfer of any Unit shall not affect the assessment lien or relieve such Unit from the lien for any subsequent assessments. However, the sale or transfer of any Unit pursuant to foreclosure of the first Mortgage shall extinguish the lien as to any installments of such assessments due prior to the Mortgagee's foreclosure. The subsequent Owner of the foreclosed Unit shall not be personally liable for assessments on such Unit due prior to such acquisition of title. Such unpaid assessments shall be deemed to be Common Expenses collectible from Owners of all Units subject to assessment under Section 5.6, including such acquirer, its successors and assigns. 5.8. Capitalization of Association. The first Owner of each Unit other than Declarant shall make a contribution to the working capital of the Association in an amount equal to one -sixth of the General Assessment levied by the 10 B31614 - P518 Association against Units subject to full assessment for the year its which such first occupant°y occurs, This amount shall be in addition to, not in lieu of, the annual General Assessment and shall not he considered. an advance payment of such assessments, but rather shall be considered a Specific Assessment secured by the Association's Tien for assessments under Section 5.5. This amount may be used by the Association for operating expenses and other expenses incurred by the Association pursuant to this Declaration and the By -taws, or for funding of reserves as the Board may determine in its discretion. 5,9. Use and Consumption The Board may chat°g e, ca.nsumption, or activity fees to an Person using Association services or facilities or participating in Association -sponsored activities. The Board may determine the amount and method of determining such fees. Different fees may be charged to different t classes of users (e e., Owners and non -Owners). 5.10. eparate Real Estate Taxes, Real estate taxes, special assessments, and any other special charges of the State of North Carolina or any duly authorized subdivision or agency thereof, are to be separately taxed to each Owner for his or her Unit, as provided in the Act. In the event that for any year such taxes are not separately taxed to each Owner, then where the bill affects E{ighland Park Townhornes 1 as a whole or portions of the Common Areas and not Units, then each Owner shall pay his or her proportionate share thereof. Upon the affirmative vote of not less than a rnajoriity of the Owners or upon the affirmative vote of the F3oard, the Association, acting oar behalf ofa1.1 Owners, shall have the authority to seek relief for the Owners from any such taxes, special assessments or charges, and any expenses incurred in connection with such action shall be Common Expenses. S.I 1. Access and Utilities Easement; Cost Sharing. In addition to this Declaration, Highland Park Townhoenes I is subject tea that certain Access and Utilities Easement, Cost Sharing and Restrictive Covenant Agreement, recorded in Deed Book 30961, Page 561, et seq., Mecklenburg County, North Carolina Register of Deeds (as amended from time to time, "Cost Sharing Agreement''), that creates certain easements for the benefit of the Association and the Owners and obligates the Association to share the costs of maintaining certain mutually beneficial property, as described in such Cost Sharing Agreement., The costs assigned to the Association under the Cost Sharing Agreement shall he Common Expenses to be assessed against all. Owners as part the General Assessment. 6. USE OF UNITS AND COMMON AREAS. 6.1, General. Each Owner is entitled to exclusive. possession e f his or her Unit and any ted Common Areas assigned exclusively to such Unit, Each Owner has a right to use all other portions of the Common Areas (excluding Limited Common Areas assigned exclusively to other Units) in B31614 - P519 common with others for the purposes for which they are designed and intended, subject to this Declaration and reasonable Board regulation. No such use shall enter or encroach upon the lawful rights of the other Owners. An Owner who leases his or her Unit transfers and assigns to the lessee, for the term of the lease, any and all rights and privileges that the Owner has to use the Common Areas of Highland Park Townhomes T, except that the Owner shall have a right of access to the Unit as necessary to exercise the Owner's rights and perform the Owner's responsibilities under the lease. 6.2. Use of Shared Limited Common Areas. No person shall usurp or make use of any Limited Common Area assigned for the use or benefit of more than one Unit in such a manner as to deny or restrict equal access to such Limited Common Area by the Owners or occupants of other Units to which it is assigned. 6.3. Reservation of Use of Common Areas. With the Board's prior written approval and subject to such conditions and fees as the Board may impose, an Owner or occupant of a Unit may reserve portions of the Common Area for private use for a specified period of time if the Board determines, in its reasonable discretion, that permitting such private use does not unreasonably interfere with the rights of other Owners to use such Common Area. Each Owner or occupant shall assume, on behalf of himself and any guests, all risks associated with the use of the Common Area and all liability for any damage or injury to any person or thing as a result of such use and shall indemnify and defend the Association for any claims arising out of any such damage, injury, or use, except to the extent that the damage or injury is caused solely by the willful acts or gross negligence of the Association, its agents or employees. 6.4. Regulation of Use of Units. (a) Residential and Related Uses. Units may be used only for residential purposes (including parking and storage of personal property), except as Declarant may otherwise permit with respect to its construction, marketing and sales activities, and as otherwise authorized in this Section. A business activity may be conducted within or from a Unit only if conducted by a person or persons residing in the Unit and only if the business activity: (i) is not apparent or detectable by sight, sound, or smell from outside of a permitted structure; (ii) complies with all applicable legal requirements; (iii) does not involve regular visits to Highland Park Townhomes I by employees who do not reside in the Unit, clients, customers, suppliers, or other business invitees, or door-to- door solicitation within Highland Park Townhomes .I; (iv) does not increase the insurance premiums paid by the Association or otherwise negatively affect the Association's ability to obtain insurance coverage at reasonable cost; and 12 B31614 - P520 011 is consistent with the residential character of Highland Park Townhomes and does not constitute a nuisance or a hazardous or offensive use, or threaten the security or safety of others, as the Board determines in its discretion„ "Business," as that term is used in this Declaration, is intended to have its ordinary, generally accepted meaning and shall include, without limitation, any occupation, work, or activity undertaken on an ongoing basis which involves providing goods or services to persons other than the family of the producer and for which the producer receives a fee, compensation, or other form of consideration, regardless of whether (i) such activity is engaged in full or part time; (ii) such activity is intended to or does generate a profit; or (iii) such activity requires a license, Leasing a Unit for residential purposes shall not be considered a "business" within the meaning of this subsection but shall be subject to the restrictions set forth in Section 7 and to such rules as the Association may adopt pursuant to Section 6„4(d)„ For purposes of this provision, the terrn "Leasing" shall be defined as described in Section 7„, 1, The use of a Unit by an on -site management company operating on behalf of the Association shall not be considered a trade or business within the meaning of this subsection,. (b) Single .Family Occupancy. Occupancy of each Unit shall be limited to that number of persons equal to twice the number 4,-if bedrooms in the Unit or, alternatively, up to two adults and all children under the age of 18 for whom either or both of such adults are the parent, legal custodian, or designee authorized in writing by the child's parent or legal custodian to care for the child. For purposes of this Section, a person shall be deemed to be in "occupancy" if they stay overnight in the Unit more than 7 nights, consecutive or nonconsecutive, in any .30-day period or more than .14 nights in any 6-month period, (c) Timesharing. No Unit shall be made subject to any type of timesharing, fraction - sharing. Lodging club, or similar program whereby the right to exclusive use of a Unit rotates among members of the program or club on a fixed, floating, reservation, or other basis in accordance with the rules or terms of the program or club, (d) Rulemaking Authority and Procedures, The Governing Documents establish., as part of the general plan of development for Highland Park Townhomes I, a framework of affirmative and negative covenants, easements and restrictions that 1,,,,,ovem the com.munity. The. initial "Rules" attached as Exhibit "C' are a part of that framework. However, within that framework, Declarant and the Association must have the ability to respond to unforeseen problems. and changes in circurnsta.nces, conditions, needs, desires, and trends. Therefore, this Section establishes rulemaking authority and procedures for modifying and expanding the initial Rules set forth in Exhibit "C." This Section is not intended to apply to rules and regulations relating to use and operation of the Common Area, which the Board may adopt by resolution pursuant to Section 3, nor to administrative policies which the Board may adopt by resolution to interpret, define or implement the Rules. (i) Declarant Authority. So long as Declarant has the right unilaterally to amend this Declaration pursuant to Section 19, Declarant may unilaterally amend the Rules to add. new Rules or to modify or rescind existing Rules. B31614 - P521 (ii) Board Authority. Subject to the terms of this Section and the Board's duty to exercise its powers in a reasonable, fair and nondiscriminatory manner, the Board may modify, cancel, limit, create exceptions to, or expand the Rules by majority vote of the directors at any meeting. However, during the Development and Sale Period, any such action shall also be subject to Declarant's approval. (iii) Member Authority. Subject to the terms of this Article, Members may, at an Association meeting duly called for such purpose, modify, cancel, limit, create exceptions to, or expand the Rules then in effect upon approval of Owners entitled to cast more than 50% of the total votes in the Association. In addition, during the Development and Sale Period, any such action shall require the written consent of Declarant. (iv) Notice of Proposed Rule Change. The Board shall send notice to all Owners or publish notice in a community newsletter or on a community intranet or website concerning any Rule change proposed under subsections (ii) or (iii) above at least five business days prior to the meeting of the Board or the members at which such action is to be considered. At any such meeting, Association members shall have a reasonable opportunity to be heard before the proposed action is put to a vote. (v) Effective Date. Prior to any action taken under this Section becoming effective, the Board shall send a copy of the new rule or explanation of any changes to the Rules to each Owner. The effective date shall be no less than 30 days following distribution to Owners. The Association shall provide, without cost, a copy of the Rules then in effect to any requesting Owner or Mortgagee. (vi) Limitation. No action taken under this Section shall have the effect of modifying, repealing or expanding any provision of this Declaration other than the initial Rules set forth in Exhibit "C." (e) Protection of Owners and Others. Except as this Declaration or the initial Rules set forth in Exhibit "C" may otherwise provide (either initially or by amendment), all Rules shall be subject to the following: (i) Similar Treatment. Similarly situated Owners shall be treated similarly; however, the Rules may vary by housing type or area. (ii) Religious and Holiday Displays. The rights of Owners to display religious and holiday signs, symbols, and decorations inside structures on their Units of the kinds normally displayed in dwellings located in single-family residential neighborhoods shall not be abridged, except that the Association may adopt time, place, and manner restrictions with respect to displays visible from outside the dwelling. (iii) Flags. No rule shall regulate or prohibit the display on a Unit of the flag of the United States of America or the flag of the State of North Carolina, of a size no greater than four feet by six feet, by the Owner or occupant of such Unit, provided the flag is displayed in accordance with or in a manner consistent with the patriotic customs set forth in 4 U.S.C. Sections 5-10, as amended, governing the display and use of the flag of the United States. 14 B31614 - P522 (iv) Political Signs. No ru]e shall regulate or prohibit the indoor or outdoor display of a political sign on a Unit by the Owner or occupant of the Unit, except that the Association may adopt rules (A) prohibiting the display of political signs earlier than 45 days before the day of the election and later than seven. days after an election day, and (B) regulating the size and number of political signs that may be placed on a Unit, subject to the limitations set forth in Section 47F-3-111 of the Act. For the purposes of this subsection (iv), "political sign" means a sign that attempts to influence the outcome of an election, including supporting or opposing an issue ott the election ballot. (v) Household Composition. No rule shall interfere with the freedom of Owners to determine the composition of their households, except that the Association shall have the power to require that all occupants be members of a single housekeeping unit and to limit the total number of occupants permitted in each Unit on the basis of the size and facilities of the Unit and its fair use of the Common Area. (vi) Activities Within Dwellings, No rule shall interfere with the activities carried on within the confines of dwellings, to the extent in compliance with local laws and ordinances, except that the Association may prohibit activities not normally associated with property restricted to residentialuse,. and it may restrict or prohibit any .activities that create monetary costs for the Association or other Owners, that create a danger to the health or safety of occupants of other Units, that generate excessive odor, noise or traffic, that create unsightly conditions visible outside the dwelling, or that create an unreasonable source of annoyance to persons outside the Unit. (vii) Allocation of Burdens and Benefits, No rule shall alter the allocation of financial burdens among the various Units or rights to use the Common Area to the detriment of any Owner over that Owner's objection expressed in writing to the Association. Nothing in this provision shall prevent the Association from changing the Common. Area available, from adopting generally applicable rules for use of Common Area, or from denying use privileges to those who are delinquent in paying assessments, abuse the Comrnon Area, or violate the Governing Documents.. This provision does not affect the right to increase the amount of assessments as provided in Section 5. (viii) Alienation. No rule shall prohibit the transfer of any Unit, or require consent of the Association or Board for the transfer of any Unit. (ix) Abridging Existing.Rights. No rule shall require an Owner to dispose of personal property that was in or on a Unit prior to the adoption of such rule if such personal property was in compliance with all rules previously in force. This exemption shall apply only during the period of such Owner's ownership of the Unit, and shall not apply to subsequent Owners who take title to the Unit after adoption of the rule. (x) Reasonable Rigflts to Develop and Sell. No rule or action by the Association or Board shall impede Declarant's right to develop Highland Park Townhotnes I, nor restrict Declarant or such Builders as Declarant may so authorize from maintaining upon Common Areas and Units which they own any facilities necessary or incidental to construction or sale of 15 B31614 - P523 Units. By way of example and not limitation, no rule shall prohibit Declarant from maintaining temporary structures for use during construction on a Unit or from using any home as a sales office. (xi) Interference with Easements. No Rule may unreasonably interfere with the exercise of any easement. The limitations in subsections (i) through (ix) of this Section 6.4(e) shall only limit rulemaking authority exercised under Section 6.4(d); they shall not apply to amendments to this Declaration adopted in accordance with Section 19 provided such amendments are not inconsistent with the Act. (f) Owners Acknowledgment and Notice to Purchasers. ALL OWNERS ARE GIVEN NOTICE THAT USE OF THEIR UNITS AND THE COMMON AREA IS LIMITED BY THE RULES AS AMENDED, EXPANDED, AND OTHERWISE MODIFIED FROM TIME TO TIME. By accepting a deed to a Unit, each Owner acknowledges and agrees that the use, enjoyment, and marketability of his or her Unit is Iimited and affected by the Rules, which may change from time to time. All Unit purchasers are hereby notified that the Association may have adopted changes to the Rules and that such changes may not be set forth in a recorded document. A copy of the current Rules and administrative policies are available from the Association upon request. The Association may charge a reasonable fee to cover its reproduction cost. 7. LEASING AND TRANSFER OF UNITS. 7.1. Leasina. (a) "Leasing," for purposes of this Declaration, means regular, exclusive occupancy of a Unit by any person or persons other than the Owner for which the Owner receives any consideration or benefit, including, but not limited to, rent or other fees, or any service, gratuity, or emolument. (b) Units may be leased only in their entirety; no fraction or portion consisting of less than the entire Unit may be leased. Limited Common Areas may not be leased separate from the Unit to which they are assigned. There shall be no subleasing of Units or assignment of leases without the Board's prior written approval. All leases of Units must be for an initial term of not less than six months; however, the Board shall have the power to allow leases for an initial term of less than six months, on such terms and conditions as the Board may establish, upon a showing by the Owner that such a lease is required to avoid undue hardship to the Owner. (c) All leases shall be in writing and in a form approved by the Board prior to the effective date of the lease. The Board shall maintain in its files and, upon request, shall provide to any Owner a lease form that it deems acceptable. Any Owner leasing a Unit shall provide the Board with a copy of such executed lease agreement and the name of the lessee and all other people occupying the Unit on the earlier to occur of: (i) the date of occupancy; or (ii) the date which is 10 days after the execution of the lease. The Owner must make available to the lessee copies of the Declaration, By -Laws, and the Association's Rules and regulations. 16 B31614 - P524 (d) Any lease of a Unit shall be deemed to contain the .following provisions, whether or not expressly stated in the lease: (i) Compliance Wi - vernino: Documents, The lessee. shall comply with all provisions of the Governing Documents and shall control the conduct of all other occupants and guests of the leased Unit in order to ensure their compliance. In the event that the lessee, or a person living with the lessee,violates the Governing Documents, notice of the violation shall be given to the Owner and the lessee, and ila fine is imposed, such fine shall be assessed against the lessee in accordance with Section 17,2 and the By -Laws. Any violation of the Governing Documents by the lessee, any occupant or the leased Unit, or their guests, shall constitute a default under the terms of the lease. The Owner delegates and assigns to the Association, acting through the Board, the power and authority to enforce this provision against the lessee, including the power and authority to evict the lessee as attomey-in-fact on behalf and for the benefit: of the Owner, in accordance with the terms of this provision. In the event the Association proceeds to evict the lessee, any costs, including attorney's fees and court costs, associated with the eviction shalt be levied against the Unit as a Specific Assessment pursuant to Section 5.5. (ii) Liability :for Assessments. If the Owner of a leased Unit fails to pay any assessment or other charge for a period of :more, than 30 days after it is due and payable, then the delinquent Owner shall be deemed to have assigned to the Association any rents to be paid by the lessee during the period of delinquency., and, upon request by the Board, the lessee shall pay to the Association all unpaid assessments and other charges payable during and prior to the term of the lease and any other period of occupancy by lessee. However, the lessee need not make such payments to the Association in excess of, or prior to the due dates for, rental payments unpaid at the time of die Board's request. Alt such payments made by the lessee shall reduce, by the same amount, the lessee's obligation to make rental payments to the lessor, if the lessee fails to comply with the Board's request to pay assessments or other charges, lessee shall pay to the Association all amounts authorized under the Declarationas if lessee were an Owner. The above provision shalt not be construed to release the Owner from any obligation, including the obligation for assessments, for which he or she would otherwise be responsible. (e) The Board may adopt a Rule requiring an Owner who desires to lease his or her Unit to post a damage deposit with the Association in such reasonable amount as the Board may establish, in which case the Board may deduct from such deposit any Specific Assessment levied. pursuant to Section 5.5 as a result of the conduct of the tenant or other occupants of the leased Unit. 7,2. Transfer of Title to Units, Upon the initial transfer of title to each Unit by Declarant, the purchaser shall pay a one- time contribution to the working capital of the Association as described in Section 5.8 and a contribution in the amount of $500 to an insurance fund, to be applied by the Association to payment of insurance premiums for insurance obtained by the Association pursuantto Section 10. Both payments shall constitute an assessment against the Unit. After the initial sale of a Unit, any Owner desiring to sell or otherwise transfer title to his or her Unit shall make such disclosure as required by N.C.G.S: Section 47E-1, et seq., and in 1 7 B31614 - P525 addition shall give the Board at least seven days' prior written notice of the name and address of the purchaser or transferee, the date of such transfer of title, and such other information as the Board may reasonably require. The Person transferring title shall continue to be jointly and severally responsible with the Person accepting title for all obligations of the Owner, including assessment obligations, until the date upon which the Board receives such notice, notwithstanding the transfer of title. The Association may charge a reasonable administrative fee for preparation of a statement of unpaid assessments pursuant to N.C.G.S. Section 47F-3-102(13) and may require that such fee be paid in advance. 8. EASEMENTS. 8.1. Easement in Common Area. Each Owner and occupant of a Unit shall have a non-exclusive right and easement of use and enjoyment in and to the Common Areas (including a perpetual, unrestricted right of access to and from his or her Unit over those portions of the Common Areas intended for such purpose), subject to the Governing Documents and the rights of the Association to regulate the Common Area as provided in this Declaration. Such easement shall be a part of and shall pass with the title to each Unit, subject to the rights of the Owners to the exclusive use of the Limited Common Areas assigned to their respective Units and to the right of the Association to control the use and enjoyment of the Common Areas as provided in this Declaration. Any Owner may extend his or her right of use and enjoyment of the Common Areas to the members of his or her family, lessees, and guests, as applicable, subject to reasonable Board regulation. An Owner who leases,his or her Unit shall be deemed to have assigned all such rights to the lessee of such Unit for the period of the lease. 8.2. Easement of Support. Every portion of a Unit and all Limited Common Areas contributing to the support of an abutting Unit shall be burdened with an easement of support for the benefit of such abutting Unit. 8.3. Easement for Encroachments. To the extent that any improvement constructed on a Unit or Common Area encroaches on any other Unit or Common Area, whether by reason of any deviation from the plat in the construction, repair, renovation, restoration, or repair of any improvement or by reason of the settling or shifting of any land or improvement, a valid easement for such encroachment shall exist, except that no easement shall exist if such encroachment results from willful and intentional misconduct by an Owner or its agent or employee. In addition, the structure on a Unit may have eaves, roof overhangs, and other building parts ("Overhangs") which encroach over or under or otherwise extend into air space located within the boundaries of an adjacent Unit or Common Area. In such case, an easement for such Overhangs, including for their existence, reconstruction, and maintenance, is hereby granted and shall exist over such adjacent Unit or Common Area in favor of the Unit served by such Overhang. 18 B31614 - P526 8. Easement fnr Joint IJtititi±es and Equipment, Declarant hereby reserves a norr-exciusiive easement for the installation of and creates and grants to the Association a non-exclusive easement for the existence of and for the maintenance, repair, replacement, and improvement or upgrade of, any utility lines, equipment, facilities, or apparatus located in or on a Unit and any replacements or upgrades thereof, which serve more than one Unit, a Unit other than that on or within which such facilities are located, or any Unit and the Common Area ("joint Facilities"), and for access through the Unit as necessary to perform such maintenance, repair, replacement, inspections, and testing as the Board may deem necessary or advisable from time to time. Such easement may be exercised by the Association's directors, officers, agents, employees, manager, contractors, and by public safety officials acting in their official capacity; provided, except in instances involving manifest danger to public safety or property, the Association shall enter a Unit only during reasonable hours and shall make a reasonable effort to give notice to the Unit Owner prior to such entry. The Association shall be responsible for repairing any incidental damage to the Unit resulting from the Association's access through or activities in the Unit. No Unit ON v her nor any occupant of any Unit, nor any contractor, agent, or invitee of the Owner or occupant, shall remove, alter, disrupt, disconnect, or otherwise interfere with the installation or operation of any Joint Facilities in any manner, or block access to the. Joint Facilities in any way, without the prior written. consent of the Association, which consent may be granted, denied, or subject to reasonable conditions, in the Board's discretion. 8.5_ Easement for Development. In addition to such easements as are reserved to Declarant under Section 13 of this Declaration, Declarant reserves for itself, its successors, assigns and designees, a transferable casement on and over the Common Area for the purpose of making improvements to Highland Park Townhomes I and for the purpose of doing all things reasonably necessary and proper in connection with the development of Highland Park Townhomes I and with the improvement, marketing, and sale of the Units and the property described on Exhibit "B " 8.6. >hrsnt for Muni ipality. Declarant grants to the City of Charlotte and Mecklenburg County a tight and easement of access over highland Park Townhomes I for the purposes reasonably related to the proper exercise of its rights and powers, including, without limitation, reading of utility meters and enforcement of its ordinances and regulations, including such fire acid safety regulations and parkutg regulations as may be in effect from time to time and apply to Highland Park Townhomes I. 8.7. Cr o s41)rainace Easement Each Unit shall be burdened with a perpetual, non-exclusive easement over that portion of the Unit which is not improved with structures, for the purpose of drainage of stormwater runoff from any portion of Highland Park Townhomcs I; provided, no Person shall alter the natural drainage of stormwater from any Unit once construction of initial improvements has been. completed so as to unreasonably increase the drainage of stormwater onto adjacent portions of B31614 - P527 Highland Park Townhomes 1 without the consent of Owner(s) of affected property, the Board, and, during the Development and Sale Period, Declarant. 8.8. Easement for Irrigation Equipment. The Association shall have a perpetual, non-exclusive easement over, under and through the exterior portions of each Unit, except any area upon which buildings have been erected, for the purpose of installing, maintaining, repairing, replacing, and operating any irrigation equipment, systems and lines serving all or any portion of Highland Park Townhomes I. 8.9. Easement for Pedestrian Access. Declarant hereby creates and grants to permitted users of the adjacent Highland Mill project, a non-exclusive right and easement over any exterior sidewalk or pedestrian pathway located within the boundaries of a Unit which provide access from East 3`d Street to public use areas within the Highland Mill project. The right to use any such sidewalk or other pedestrian pathway for ingress and egress to and from the Highland Mill project shall be subject to reasonable regulation and control by the Association in the same manner as pertains to the Association's control over the Common Area. 8.10. Facilities Open to the Public. Declarant reserves the right to designate a portion of the Common Area as a public park for use and enjoyment of the general public subject to reasonable regulation by the Association. Members of the general public shall be permitted users of such public park space; provided, the privileges afforded members of the general public shall not be deemed to (i) grant a vested right to the general public in, the use of and access to any other portion of Highland Park Townhomes I, except as otherwise described in ,Section 8.9; (ii) permit demonstrations, protests,. or other organized gatherings without the Association's specific written consent; or (iii) require any consent or approval by members of the general public to modify, restrict, or rescind such privileges. 8.11. Granting of Additional Easements. The Association shall not grant any easements over the Common Areas for any purpose without Declarant's consent so long as Declarant owns any Unit in Highland Park Townhames I or has a right to expand Highland Park Townhomes I pursuant to Section 12. 9. MAINTENANCE RESPONSIBILITY. 9.1. Unit Owners. Except as provided in Section 9.2, each Owner shall be responsible for maintaining his or her Unit, including all structures and improvements on the Unit in a neat, attractive, and sanitary condition and in good order and repair. 20 B31614 - P528 9,2, Association, Except as this Declaration may otherwise specifically provide, the Association shall maintain and keep in good repair the Common Area and those portions of the Units which are subject to the pedestrian access easement described in. Section 8.9, In addition, the Association shall be responsible for the following with respect to the. Units: (a) maintenance , including periodic mowing, fertilizing, watering, pruning, insect and disease control, and replacement as needed, of alt lawns and landscaping installed as part of the initial construction on the Units and replacements thereof; (b) maintenance, repair, and replacement., as needed, of the :footings and foundation or slab upon which the dwelling on the Unit is constructed, (c) maintenance, repair, and replacement, as needed, of the driveway and sidewalk on the Unit, including periodic pressure cleaning and, to the extent that the Board has budgeted sufficient funds, snow removal; (d) maintenance, repair, and replacement of the exterior, non-structural facade of the dwelling on each Unit and the exterior, non-structural portion of any patio, balcony, porch, or deck attached to the dwelling as part of the initial construction on the Unit (and replacements thereof), including: (i) painting of all exterior painted surfaces; (ii) caulking of the exterior portions of all. windows and doors; (iii) repair or replacement of rotten. wood; and v) cleaning, repair and :replacement of gutters and downspouts; (e) repair and/or replacement, as necessary, of the roofs of dwellings, including garage roofs and roofs over any deck, balcony, porch, patio, or stoop on the Unit (including shingles and roof decking, but not including trusses, rafters, or other structural components of roofs); and. (f) operation, maintenance, repair and replacement, as needed, of irrigation equipment (including, without limitation, any sprinklers, pumps, wells, water lines and time clocks, wherever located), if any, in.stallcd. by Declarant as part of the initial construction on the Units (and replacements thereof). The Association shall not be responsible for any maintenance or repairs to any chimney., fireplace, window or door, including garage doors (other than painting and caulking as provided above)„ anything contained within any dwelling or garage, or any landscaping, improvements., or modifications added or made to any Unit after the conveyance of the Unit to the first Owner following issuance of a certificate of occupancy for the dwelling on such Unit. The costs of providing such maintenance and repair, including replacements as needed, shall be a Common Expense, except that: B31614 - P529 (A) any costs incurred by the Association in performing its responsibilities under this Section necessitated by the negligence or willful misconduct of an Owner or occupant of a Unit or their family, guests, tenants, or invitees, may be assessed as a Specific Assessment against the Unit of such Owner or occupant, as provided in Section 5.5; and (B) the Board may, with respect to any particular type of maintenance, repair, or replacement (including with respect to the maintenance of Limited Common Area), provide all or a portion of such maintenance, repair, or replacement at the expense of the benefited Owner(s), provided that all similarly situated Units are treated the same. The Association shall not be liable to any Owner or occupant of a Unit, or to their guests or family members, for any damage or injury caused in whole or in part by the Association's failure to maintain, repair or replace any item on the Common Areas unless the Association had prior notice or reason to know of the need for such maintenance or repair. The Association shall repair incidental damage to any Unit resulting from performance of work that is the responsibility of the Association. In performing its responsibilities hereunder, the Association shall have the authority to delegate to third parties of its choice such duties as the Board may approve. The Association shall have the right, but not the obligation, to maintain and repair as a Common Expense any or all property owned by the Association but not submitted to this Declaration. 9.3. Failure to Maintain. If the Board determines that any Owner has failed or refused to discharge properly his or her obligation with regard to the maintenance, repair, or replacement of items of which he or she is responsible hereunder, then the Association shall give the Owner written notice of the Owner's failure or refusal and of the Association's right to provide necessary maintenance, repair, or replacement at the Owner's cost and expense. The notice shall set forth with reasonable particularity the maintenance, repair, or replacement deemed necessary by the Board. Unless the Board determines that an emergency exists, the Owner shall have 10 days within which to complete maintenance or repair, or if the maintenance or repair is not capable of completion within such time period, to commence replacement or repair within 10 days. If the Board determines that: (a) an emergency exists, or (b) that an Owner has not complied with the demand given by the Association as herein provided, then the Association may provide any such maintenance, repair, or replacement at the Owner's sole cost and expense, and such costs shall be assessed as a Specific Assessment against such Owner, shall become and be a lien against the Unit, and shall be collected as provided herein for the collection of assessments. 9.4. Measures Related to Insurance Coverage. (a) The Board, upon resolution, may require all or any Owner(s) to take preventive action with respect to the Owner's Unit or Limited Common Areas assigned exclusively to the Owner's Unit that will, in the Board's judgment, decrease the risk of fire or other damage in Highland Park Townhomes I, reduce the insurance premium paid by the Association for any insurance coverage, or otherwise assist the Board in procuring or maintaining such insurance coverage. By way of example, the Board may require Owners to take preventive measures to 22 B31614 - P530 prevent freezing of water pipes, or to install or replace batteries in smoke detectors; or to take such other measures as the Board may reasonably require so long as the cost of such work to any Owner does not exceed one -sixth of the 'annual General Assessment for the year in which the work is required. (b) If an Owner does not comply with any reasonable requirement of the Board pursuant to subsection (a) above, the Association, upon 1.5 days' written notice (during which period the Owner may perform the required act or work without further liability), may perform such required act or work and charge all costs incurred to the Unit and the Owner thereof as a Specific, Assessment pursuant to Section 5.2(c). The Association shall have all rights necessary to implement the requirements mandated by the Board pursuant to subsection (a) of this Section, including, but not limited to, a right of entry during reasonable hours and after reasonable notice to the Owner or occupant of the Unit, except that access may be had at any tirne without notice in an emergency situation. 9.5. Maintenance Stand.ards and inter1nterpretati9fl The maintenance standards and the enforcement thereof and the interpretation of maintenance obligations under this Declaration may vary from one term of the Board to another. These variances shall not constitute a waiver by the Board of the right to adopt and enforce maintenance standards under this Section. No decision or interpretation by the Board shall constitute a binding precedent with respect to subsequent decisions or interpretations of the Board. Nothing in this Declaration shall be construed to require irrigation of landscaping to the extent such irrigation would otherwise be prohibited during any period in which the Governor of the State of North Carolina, any agency of the State of North Carolina, or any unit of local government having jurisdiction over any portion of Highland Park Townhomes 1, has imposed water conservation measures. 10. INSURANCE AND CASUALTY LOSSES. 1.0.1,Insurance Responsibility,. (a) Owner Responsibility, Every Owner shall ()Main and maintain at all times insurance covering the contents of his or her Unit to the extent not insured by policies maintained by the Association, and upon the Board's request shall furnish a copy of such. insurance policy or policies to the Association, In the event that any Owner fails to obtain insurance as required by this subsection, the Association may, but shall not be required to, purchase such insurance on behalf of the Owner and assess the premium cost to the Owner, to be collected in the manner provided for collection of assessments under Section 5. Upon not less than 30 days' prior written notice to the Owners, the Board may also require Owners to obtain and maintain insurance for personal liability and compensatory (but not consequential) damages arising out of the negligence of the Owner or occupants or guests of the Owner's Unit, or resulting from other causes originating within the Owner's Unit. If required., any such insurance shall cover the deductible payable by the Owner of any Unit damaged as well as any damages to another Unit due to such negligence or other causes, 23 B31614 - P531 (b) Association Responsibility. The Association shall obtain and maintain at all times insurance coverage of at least the following types and amounts, if reasonably available, or if not reasonably available, the most nearly equivalent coverages as are reasonably available: (i) Blanket property insurance on all insurable improvements within Highland Park Townhomes I affording coverage against all risks of direct physical loss commonly insured against. The total amount of such insurance after application of any deductibles shall be not less than 80% of the replacement cost of the insured improvements under current building ordinances and codes at the time the insurance is purchased and at each renewal date, exclusive of land, excavations, foundations, and other items normally excluded from property policies. Insurance on Units shall cover the bare walls, ceilings, and floors, and fixtures installed by Declarant, but need not cover floor, wall, or ceiling coverings, or improvements or betterments installed after conveyance of the Unit by Declarant. If such items are covered, any increased premium cost associated with such coverage may, in the discretion of the Board, be assessed against the benefited Unit pursuant to Section 5.1(b)(i). The policy or policies obtained pursuant to this clause (i) shall provide coverage in an amount equal to the full replacement value of the property insured less deductibles, but including coverage for increased reconstruction costs necessary to satisfy changes in building codes. Policies may contain a deductible in such amount as the Board considers appropriate in the exercise of its business judgment; (ii) Commercial general liability insurance on the Common Area, insuring the Association and its members for damage or injury caused by the negligence of the Association or any of its members, employees, agents, or contractors while acting on its behalf for all occurrences commonly insured against arising out of or in connection with the operation, maintenance, and use of the Common Areas and other portions of Highland Park Townhomes 1 which the Association is obligated to maintain; provided, the policies shall not provide coverage for individual Owners or occupants of Units for liability arising within their Units. If generally available at reasonable cost, such coverage (including primary and any umbrella coverage) shall have a limit of at least $ 1,000,000.00 per occurrence with respect to bodily injury, personal injury, and property damage; and (iii) Worker's compensation insurance, if and to the extent necessary to meet the requirements of law; (iv) Officers' and directors' liability insurance in such amounts as the Board may determine, if available at reasonable cost; (v) Commercial crime insurance, including fidelity insurance covering all Persons responsible for handling Association funds in an amount determined in the Board's business judgment but not less than an amount equal to one -quarter of the annual General Assessments on. all Units plus reserves on hand. Fidelity insurance policies shall contain a waiver of all defenses based upon the exclusion of Persons serving without compensation; and (vi) Such other insurance as the Board may determine necessary or appropriate. 24 B31614 - P532 If the insurance described in clauses (i) or (ii) of this subsection (b) is not reasonable available, :the Association shall promptly cause notice of that fact to be hand -delivered or sent via U.S. Mail, postage prepaid, to all Owners.. (c) Association Policy Reguirements, The Association shall arrange for a periodic review of the sufficiency of its insurance coverage by one or more qualified Persons, at least one of whom must be familiar with insurable replacement costs in the Charlotte, North Carolina area. All Association policies shall provide fur a certificate of insurance to be furnished to the Association and, upon request., to each Owner. The policies may contain a reasonable deductible and the amount thereof shall not be subtracted from the face amount of the policy in determining whether the policy limits satisfy the requirements of Section lQ(b). In the event of an insured loss, the deductible shall be treated in the same manner as the premiums for the applicable insurance coverage. However, ifthe Board reasonably determines, after notice and an opportunity to be heard in accordance with the By - Laws, that the loss is the result of the negligence or willful misconduct. of one or more Owners, their guests, invitees, or lessees, then the Board may assess the 'full amount of such deductible against such Owner(s) and their Units as a Specific Assessment, All insurance coverage obtained by the Board shall: (i) be written with a company authorized to do business in North Carolina which satisfies the requirements of the Federal National Mortgage Association, or such other secondary mortgage market agencies or federal agencies as the Board deems appropriate; (ii) be written in the name of the Association as trustee for the benefited parties. Pohcies on the Common Areas shall be for the benefit of the Association and its members; (iii) be primary and not be brought into contribution with insurance purchased by Owners, occupants, or their Mortgagees individually; (iv) provide that each Owner is an insured person under the policy to the extent. of the Owner's insurable interest and with respect to liability arising out of such Owner's interest in the Common. Area as a member in the Association (provided, this provision shall not be construed as giving an Owner any interest in the Common Area other than that of an Association member); (v) provide a waiver of the insurer's right to subrogation under the policy against any Owner or member of the Owner's household; and (vi) include an .endorsement precluding denial of coverage under the policy on account of any act or omission of any one or more individual Owners or members of their households, unless such Owner is acting within the scope of its authority on behalf of the Association. In addition, the Board shall use reasonable efforts to secure insurance policies that list the Owners as additional insureds and provide an endorsement requiring at least 30 days' prior written notice to the Association of any cancellation, substantial modification, or non -renewal. 25 B31614 - P533 10.2. Casualty Losses. (a) Insurance Deductibles. In the event of an insured loss, the Board may: (i) pay any required deductible as a Common Expense; (ii) after notice to the Owner or occupant of a Unit who caused the damage or from whose Unit the cause of the loss originated and an opportunity for such Person to be heard, assess all or a portion of the deductible against such Unit and its Owner as the Board determines reasonable under the circumstances; or (iii) apportion the deductible equitably among the Owners suffering loss in proportion to each affected Owner's portion of the total cost of repair; provided, the Board shall handle the deductible payable in similar circumstances in a consistent manner. If any Owner fails to pay the amounts required under this subsection, then the Association may pay them and assess the cost to the Owner as a Specific Assessment pursuant to Section 5.5. (b) Cost Estimates. Immediately after a fire or other casualty causing damage to any portion of Highland Park Townhomes I, the Board shall obtain reliable and detailed estimates of the cost of repairing and restoring the structures (including any damaged Unit) to substantially the condition which existed before such casualty, allowing for any changes or improvements necessitated by changes in applicable building codes. Such costs may also include professional fees and premiums for such bonds as the Board determines to be necessary. (c) Obligation to Repair and Reconstruct. In the event of damage to or destruction of all or any part of Highland Park Townhomes I as a result of fire or other casualty: (i) if insurance proceeds are sufficient to repair or reconstruct the damaged structures, the Board or its duly authorized agent shall arrange for and supervise their prompt repair and restoration; and (ii) if the Board determines that the proceeds of insurance are not sufficient to cover the estimated costs of reconstruction and repair, or if the insurance proceeds otherwise prove inadequate to pay the actual costs of repair and reconstruction, the Board may, without a vote of the Owners, levy a Special Assessment to cover the shortfall against those Owners responsible for the premiums for the applicable insurance coverage. (d) Construction Fund. The net proceeds of insurance and such additional funds as the Association collects from assessments against Owners on account of a casualty shall constitute a construction fund that the Association shall disburse in payment of the cost of reconstruction and repair in the manner set forth in this Section. The Association shall disburse such funds in appropriate progress payments to such contractor(s), supplier(s), and personnel performing the work or supplying materials or services for the repair and reconstruction of the buildings as the Board may designate. (e) Allocation of Proceeds; Surplus Funds. To the extent insurance proceeds remain after repair or reconstruction of portions of Highland Park Townhomes I that the Association is 26 B31614 - P534 obligated to insure hereunder, the Association may reconstruct or repair Owner improvements damaged as a result of fire or other casualty. If after all repair and reconstruction is completed there is a surplus of funds., such funds shall be common funds of the Association to be used as the Board may direct, (.0 Plans and SpecO'cations,. Any reconstruction or repair under this Section shall be substantially in accordance with the plans and specifications under which Highland Park Townhomes I was originally constructed, except where changes are necessary to comply with current applicable building codes or where the Board approves improvements not in accordance with the original plans and specifications. (g) Encroachments. Encroachments upon or in favor of Units as a result of such reconstruction or repair shall not constitute a claim or basis for any proceeding or action by the Owner upon whose property such encroachment. exists, provided that such reconstruction was substantially in accordance with the architectural plans under which Highland. Park Townhomes was originally constructed. Such encroachments shall be allowed to continue in existence for so long as the reconstructed building shall stand. (h) Mortgagee Protection. In the event of substantial damage or destruction, each institutional holder of a first Mortgage shall be entitled to written notice of the damage, Nothing in this Section gives any Owner or other party a priority over any rights of first Mortgagees as to distribution of insurance proceeds. Any insurance proceeds payable to the Owner of a Unit on which there is a Mortgagee endorsement shall be disbursed jointly to such Owner and the. Mortgagee. This is a covenant for the benefit of any such Mortgagee and may be enforced by any such Mortgagee. 11. ARCHITECTURAL CONTROLS, 1 1,1 Architectural Standards. Except as permitted in this Declaration, no Owner, occupant, or any other Person except Declarant or the Association tnay make any encroachment onto the Cornmon Areas or Limited Common Areas, or make any exterior change, alteration (including painting and landscaping), or addition to the Common Areas or Limited Common Areas, nor erect, install., place or post any object, sign, tlag, light, sculpture, artificial or real vegetation, storm door or window, door knob or knocker, or other thing on the exterior portions of any dwelling or on any portion of the Unit visible from outside of the Unit, without first obtaining the written approval of the Board or its designee in accordance with the procedures set forth below. The Board shall allow such encroachments on the Common Areas and Limited Common Areas as required by Section 8.3 and federal law, and may allow such other encroachments as it deems appropriate pursuant to this Section 11. [ 1,2. Alterations Within Units. Subject to the requirements of this Section 11, Owners may make any improvements, renovations, or alterations within their Units that do not conflict with the requirements of this Declaration or any agreement entered into with Declarant, impair the structural integrity of the Unit or any adjacent Unit, or otherwise materially lessen the support of any structure within 27 B31614 - P535 Highland Park Townhomes 1. The Owner shall first notify the Board or its designee and provide evidence reasonably acceptable to the Board or its designee that the proposed improvements, renovations, or alterations will not so impair the structural integrity of any structure or lessen the support of any portion of Highland Park Townhomes I. No Person other than the Association may make any alteration within a Unit which involves connecting to Common Area pipes, lines, conduits and/or other apparatus for access to common utilities without first obtaining the written approval of the Board or its designee. 11.3, Application Procedures. Applications for approval of any such architectural modification shall be in writing and shall include detailed plans and specifications for the proposed modification, addition, or alteration and such other information as the Board or its designee may reasonably require. The Board or its designee may publish written standards for permitted alterations or additions and any request in substantial compliance therewith shall be approved. Otherwise, the Board or its designee shall be the sole arbiter of such application and may withhold approval for any reason, including purely aesthetic considerations, and it shall be entitled to stop any construction which is not in conformance with approved plans. The Board or is designee may consider, but shall not be limited to consideration of, uniformity of appearance, the quality of the proposed work, the materials to be used, and harmony with the design of other portions of Highland Park Townhomes I. After final plans and specifications have been approved, no changes may be made in the approved plans or specifications without the written consent of the Board or its designee. 11.4. Conditions of Approval. As a condition of approval for a requested modification, addition, or alteration, an Owner, on behalf of himself or herself and his or her successors -in -interest, shall assume all responsibilities for maintenance, repair, replacement.and insurance to and on such change, modification, addition, or alteration. In the discretion of the Board or its designee, an Owner may be made to verify such condition of approval by written instrument in recordable form acknowledged by such Owner on behalf of himself or herself and all successors -in -interest. The Board may also require an Owner to post a damage deposit with the Association in such reasonable amount as the Board may establish, in which case the Board may deduct from such deposit any Specific Assessment levied pursuant to Section 5.5 as a result of damage caused by the Owner, its contractors, any subcontractor, supplier, or other person making deliveries to or performing work on the Owner's Unit. 1 1.5. Limitation of Liability. In reviewing and approving applications hereunder, neither the Board nor its designee shall bear any responsibility for ensuring the structural integrity or soundness of approved construction or modifications, nor for ensuring compliance with building codes and other governmental requirements. Neither the Association, the Board, its designee, nor any member of any of the foregoing, shall be held liable for any injury, damages or loss arising out of the manner or quality of approved construction or modifications. 28 B31614 - P536 No Waiver of Future Approvals. Each Owner acknowledges that the members or the Board and any committee that it may designate to exercise its authority under this Section will change from time to time and that interpretation, application and enforcement of the architectural standards may vary accordingly. The approval of either the Board or its designee of any proposals, plans and specifications, or drawings for any work done or proposed, or in connection with any other matter requiring the approval and consent of the Board or its designee, shall not be deemed to constitute a waiver of any right to withhold approval or consent as to any similar proposals, plans and specifications, drawings, or matters whatever subsequently or additionally submitted for approval or consent 11.7. Enforcement Any construction, alteration, or other work done in violation of this Section 11 shall be deemed to be nonconforming. Upon written request from the Board, Owners shall, at their own cost and expense, remove such construction, alteration, or other work and shall restore the property to substantially the same condition as existed prior to the construction„ alteration., or other work. Should an Owner fail to remove and restore as required hereunder, the Board or its designees shall have the right to institute judicial proceedings and thereafter to enter the property, remove the violation and restore the property to substantially the same condition as existed prior to the construction, alteration or other work. All costs thereof, including reasonable attorney's fees, may be assessed against the Unit whose Owner or occupant is responsible for the violation and may be collected as a Specific Assessment pursuant to this Declaration. The Board may exclude from Highland Park Townhomes 1 any cont actor, subcontractor, agent, employee or other invitee of an Owner who faik to comply with the terms and provisions of this Section and the architectural standards, subject to the notice and hearing procedures contained in the By -Laws of the Association. Neither the Association nor its officers or directors shall be held liable to any Person for exercising the rights granted by this Section I 1 7. In addition to the foregoing, the Board shall have the authority and standing, on behalf of the Association, to impose reasonable fines and to pursue all legal and equitable remedies available to enforce the provisions of this Section and decisions made hereunder. If any Owner or occupant makes any exterior change to, or installs or constructs anything (including landscaping) on, the Comtnon Areas in violation or this Section, he or she does so at his or her sole risk and expense. The Board may remove the change, alteration or construction or require that it remain on the Common Areas without reimbursement to the Owner or occupant for any expense he or she may have incurred in making the change, alteration or construction. Period. 11.8, Application to Declarant This Section 1 shall not apply to Declarant's activities during the Development and Sale 29 B31614 - P537 12. EXPANSION OF HIGHLAND PARK TOWNHOMES I. Declarant expressly reserves the right and option, without obligation, to expand Highland Park Townhomes I at any time within 10 years after the date of recording this Declaration by amending this Declaration to submit to its terms any portion of the real property described on Exhibit B (the Expansion Property"). Any such amendment may be recorded without the consent or approval of the Association or any Owner (other than the owner of the property submitted, if not Declarant). Any property added to Highland Park Townhomes 1 may contain Units, Common Areas, Limited Common Areas, or any combination thereof, and may assign use of any Limited Common Areas not assigned under Section 3. Portions of the Expansion Property may be added to Highland Park Townhomes I at different times or may not be' added at all. There are no limitations on the order in which portions of the Expansion Property may be added or the boundaries of each portion that may be added, and no requirement that any particular portion of the Expansion Property be added to Highland Park Townhomes I. There is no limitation on the location of improvements that may be made to such property. No representation is made that structures, improvements, buildings or Units within any property added to Highland Park Townhomes I will be compatible with the existing configuration of Highland Park Townhomes I in relation to density, use, construction or architectural style. 13. DECLARANT RIGHTS. Notwithstanding anything to the contrary in the Governing Documents, Declarant shall have the following rights, in addition to those specifically described in Sections 8 and 12 and elsewhere in the Governing Documents: 13.1. Development and Sale Rizhts. Declarant hereby reserves for itself, its affiliates, and their duly authorized agents, representatives, and employees, an easement over, under, across, and to Highland Park Limited Townhomes I for the purpose of constructof warranon and tyt of Units, Common servicesto Owners, maintenance of Common Areas, and common facilities, provision sales or leasing offices, management offices, signs, and models on Highland Park Townhomes I, and carrying on sales and marketing activities in connection with Highland Park Townhomes I during the Development and Sale Period, unless sooner relinquished in writing signed by Declarant. Declarant and its affiliates or designees may maintain one or more offices and models on the Common Areas, at no charge to Declarant, or in Units which Declarant owns, but any such use of the Common Areas shall be only in connection with the management, sale, or rental of Units in Highland Park Townhomes I. There shall be no limit on the number, size, location, or relocation of such offices and models. This subsection shall not be amended, nor shall the rights of Declarant or its affiliates hereunder be further restricted, without the prior written consent of Declarant. 13.2. Ri4ht to Appoint Association's Directors and Officers. Subject to the right of the members to elect a specified number of directors as provided in the By -Laws, Declarant shall have the right to appoint and remove a majority of the members of the Board until the first to occur of the following: 30 B31614 - P538 (a) the date that 90% of the total number of Units permitted by applicable zoning for the property d.escrihed on Exhibits "A" and "B" have certificates of occupancy issued thereon and have been conveyed to Owners other than Declarant; (b) ten years after the date of recording of the Declaration; or (c) the surrender by Declarant of such .right by 'amendment to this Declaration executed and recorded by Declarant., Such period is referred to in the GoverningDocuments as the "Declarant Control Period:" 13.3. Notwithstanding anything to the contrary contained herein, Declarant and its affiliates shall have the right to sell or lease Units and to erect and maintain signs to facilitate such salsor leases as they, in their sole discretion, deem appropriate, and shall not be required to comply with the provisions of this Declaration or any Association rules and regulations regarding signs, sales, and leases, LICS aMi 13.4. Unsold jjntts Declarant shallenjoy the rights and fulfill the duties of an, Owner with respect to any unsold Units that it owns. 13.5. Eason nd h Co Declarant reserves for itself and others it may designate, the right, but not the obligation, to inspect, monitor, test, redesign, and correct any structure, .improvement, or condition which may exist on any portion of Highland Park Townhomes I, including Units, and a perpetual nonexclusive easement of access throughout Highland Park Townhomes I to the extent reasonably necessary to exercise such right. Except in an emergency, entry into a Unit shall be only after reasonable notice to the Owner. The person exercising this easement shall promptly repair, at such persons own expense, any damage he or she causes. Nothing in this Section shall relieve an Owner of the responsibility for the maintenance and repair of his or her Unit. 13.6. Right Node. of Des". Co uction Claims. Neither the Association. any Owner, or any other person shall initiate the dispute resolution procedures under Section 18 of this Declaration., nor retain an expert for the purpose of inspecting the design or construction of any structures or improvements within Highland Park Townhomes in connection with or in anticipation of any potential or pending claim., demand, or litigation involving such design or constmcnon, including any claim for breach of contract or warranty or violation of statutory or common law requirements, unless Declarant has been first notified in writing, by certified mail, and given a reason.able opportunity to met with the Association and the Owner of any .affected Unit to discuss the concerns, conduct its own inspection, and take action to remedy the problem in accordance with this Section. Any notice to Declarant under this Section shall include a description of the nature and location of the alleged defect in design or construction ("Defect"), a description of any damage suffered as the result of the Defect, the date on which the 3 B31614 - P539 Defect was discovered, and dates and times during ordinary business hours that Declarant may meet with the Owner of the affected Unit or a representative of the Association to conduct an inspection. Nothing in this Section 13.6 obligates Declarant to inspect, repair, replace, or cure any Defect. However, if Declarant elects to repair any Defect, it will so notify the Association (if the Defect involves Common Areas) or the Owner of the affected Unit (if the Defect is in a Unit) within 30 days after conducting such inspection and the Association or Owner shall permit Declarant, its contractors, subcontractors, and agents access as needed during ordinary business hours to make such repairs which, once begun, shall be completed within a reasonable time, subject to the nature of the repair and unforeseen circumstances and events. All applicable statutes of limitations shall be tolled during the period of inspection and cure under this Section, not to exceed the earlier of (i) 120 days after the date Declarant receives written notice of the Defect in accordance with this Section; or (ii) Declarant's delivery to the claimant of written notice that Declarant does not intend to take any further action to remedy the Defect. Any dispute as to the adequacy of the proposed repairs to resolve the problem or as to whether repairs that Declarant, its contractors, or subcontractors have performed have remedied the Defect, Declarant may appoint a third -party inspector who is knowledgeable and experienced in residential home construction to inspect the Defect and make a determination as to whether any proposed solution is adequate or as to whether the Defect has been remedied. The Association, Declarant, and the Owner of any affected Unit agree to accept and abide by the decision of the inspector. If the Association or any Owner fails to comply with this Section, Declarant shall not be liable for any general, special, or consequential damages, costs, or diminution in value that might have been avoided had Declarant been given the notice and opportunity to repair described in this Section. 13.7. Right to Approve Certain Actions. During the Development and Sale Period, neither the Association nor the Owners shall grant any easement over Highland Park Townhomes I, dedicate any portion of the Common Areas to a public body, or elect to sell any portion of Highland Park Townhomcs I, without the prior written consent of Declarant. 13.8. Development Rights and Special Declarant Rights. Declarant may exercise any or all of "Development Rights" described in N.C.G.S. Section 47F-1-103(11) and the "Special Declarant Rights" described in N.C.G.S. Section 47F-1-103(28). 13.9. Right to Transfer or Assign Declarant's Rights. Declarant may transfer any or all of Declarant's special rights and obligations set forth in this Declaration or the By -Laws in whole or in part, temporarily or permanently, to other persons. However, such a transfer shall not reduce an obligation nor enlarge a right beyond that which Declarant has under this Declaration or the Fay -Laws. No transfer or assignment of Declarant's status as Declarant shall be effective unless it is set forth in a recorded instrument which Declarant 32 B31614 - P540 has signed. Declarant may permit other persons to exercise, on a one-time or limited basis, any right reserved to Declarant in this Declaration where Declarantdoes not intend to transfer such right in its entirety. In such case, it shall not be necessary to record any written ,assignment unless desired to evidence Declarant's consent to such exercise. 14. ASSOCIATION RIGHTS AND POWERS. Subject to the rights of Declarant under this Declaration and the By -Laws, the Association may exercise any right or privilege given to it expressly by this Declaration, the other Governing Documents, and North Carolina law, and every other right or privilege reasonably to be implied from the existence of any such express right or privilege, or reasonably necessary to effectuate any such right or privilege, In addition, the Association, acting through the Board or such employees or agents as the Board may authorize, shall have the right and authority: (a) to enter into Units for maintenance, cmc:rgency, security„ or safety purposes, which right may be exercised by the Association's Board, officers, agents, employees, managers, and all police officers, firemen, ambulance ,personncI, and similar emergency personnel in the performance of their respective duties.. Except in an emergency situation, entry shall be only during reasonable hours and after reasonable notice to the Owner or occupant of the Unit; (b) to enforce the Governing Documents and Rules by the imposition of reasonable monetary fines and suspension of use and voting privileges, and by any other legal means, subject to the limitations of North Carolina taw and the notice and hearing procedures set forth in the By - Laws, as applicable.. Any fines imposed shall be considered a Specific Assessment against the Unit, shall be secured by a lien in favor of the Association, and may be collected in the manner provided, for collection of other assessments under this .Declaration and the By -Laws; (c) to grant permits, licenses, utility easements, and other easements over the Common Areas, subject to the rights of Declarant under Section 8,9, and to enter into use agreements authorizing persons who do not reside in Highland Park Townhomes to use portions of the Common Areas on such temis and conditions as the Board may determine, and, acting as attorney - in -fact for the Owners, to modify the terms of any such. easements or agreements affecting Highland Park Townhomes (d) to control, manage, operate, maintain, improve, and replace all portions of Highland Park Townhomes 1 for which the Association is assigned maintenance responsibility under this Declaration, subject to the limitations set forth in the By -Laws; (e) to deal with Highland Park Townhomes in the event of damage or destruction as a result of casualty loss, condemnation or eminent domain, in accordance with the provisions of this Declaration, (1) to represent the Owners in dealings with governmental entities on matters related to and Park Townhomes I; (g) to assign the Association's right to future income, including the right to receive assessments, to secure money borrowed to fund Common Expenses; 33 B31614 - P541 (h) to enter into and agree to modifications of contracts, agreements for maintenance of Highland Park Townhomes I, covenants to share costs, or other similar agreements, on behalf of itself and the Owners, with owners of other properties, other owners associations or similar entities, including, without limitation, agreements or covenants which provide that the Association shall contribute toward the cost of maintaining property and facilities which are not part of Highland Park Townhomes I but which benefit the Association and the Owners, such as property and facilities subject to easements which benefit Highland Park Townhomes I and Owners; (i) to close or cease operation of any portion of the Common Areas (excluding the Limited Common Areas), temporarily or permanently, and to discontinue or suspend non -essential services that the Association provides to the Units; however, the Board shall give the Owners at least 30 days' prior notice of any permanent closure, cessation of operation, or discontinuation of service; (j) to arrange for or provide services to Owners and their Units, directly or through contracts with Declarant or other third parties, including bulk service agreements by which a particular service is provided to all Units as a Common Expense, or service contracts offering services at the option of each Owner with the charges for such service being a Specific Assessment against the Owner's Unit, or both. By way of example, such services might include such things as cable television, community technology, utilities, fire protection, security monitoring, pest control, and concierge services. Any Association contract for services may require individual Owners or occupants to execute separate agreements directly with the persons providing components or services in order to gain access to or obtain specified services. Such contracts and agreements may contain terms and conditions that, if violated by the Owner or occupant of a Unit, may result in termination of services provided to such Unit. Any such termination shall not relieve the Owner of the continuing obligation to pay assessments for any portion of the charges for such service that are assessed against the Unit as a Common Expense. In its discretion, the Board may discontinue offering particular services and may modify or cancel existing contracts for services, subject to the contract terms and any provision that may exist elsewhere in the Governing Documents requiring the Association to provide such services; and (k) to implement various systems and measures and take actions designed to enhance safety and security within Highland Park Townhomes I. However, each Owner and occupant of a Unit is put on notice that any such systems and measures may be temporarily interrupted, inoperable, or shut down for maintenance or repairs, and that even when operating, neither Declarant nor the Association can assure that such systems and measures may not be circumvented or that they will provide the level of protection which they are designed to provide. Each Owner and occupant, for himself or herself and his or her family, guests, and invitees, acknowledges and agrees that the neither Declarant nor the Association are insurers or guarantors of security and none of them shall have any duty to protect persons or personal property on Highland Park Townhomes I from loss, damage, or injury arising from the unlawful or negligent acts of third persons. It shall be the sole responsibility of each Owner and occupant of a Unit and each other person entering Highland Park Townhomes I to protect his or her own person and property. Neither the Association, its board of directors, managing agent, officers, or employees, nor Declarant shall be held liable for any loss or damage by reason of failure to provide adequate security or ineffectiveness of safety measures undertaken. 34 631614 - P542 15. MORTGAGEE RIGHTS. The following provisions are for the benefit of holders, insurers and guarantors of first Mortgages on Units in Highland Park Townhonies I, The provisions of this Section apply to both this Declaration and to the By -Laws, notwithstanding, any other provisions contained therein, 15,1, Notices of Delinquency. Upon written request of an institutional holder, insurer, or guarantor of a first Mortgage ("Mortgagee") stating the name and address of such Mortgagee and the street address of the Unit. to which its Mortgage relates, the .Association shall provide a statement of any delinquency in the payment of assessments or charges owed for such Unit or any other violation of the Governing Documents relating to such Unit or the Owner or occupant thereof whieh has not been cured. 15.2, Right to Examine Books d Record,. Subject to the provisions of the Act, upon written request of any Mortgagee stating the name and address of such Mortgagee and the street address of the Unit to which its Mortgage relates, the Association shall provide the Mortgagee with a copy of the Association's most recent financial statement and shall permit such Mortgagee or its agent to inspect the books and records of the Association during normal business hours, subject to the terms of the By -Laws. 15.3, No Priority. No provision of this Declaration or the By -Laws gives or shall be construed as giving any Owner or other party priority over any rights of the first Mortgagee of any Unit in the case of distribution to such Owner of insurance proceeds or conderrmation awards for losses to or a taking of the Common Area, 15,4. Notice to AssOCj3UOU. Upon request, each Owner shall be obligated to furnish to the Association the name and address of the holder of any Ntortgage encumbering such Owner's Unit, 16. EMINENT DOMAIN. If any part of the Common Area is taken by any authority having the power of condemnation or eminent domain, or conveyed by the Association in lieu of and under threat of condemnation, each Owner shall be entitled to written notice of such taking or conveyance prior to disbursement of any condemnation award or proceeds from such conveyance. Such award or -proceeds shall be payable to the Association to be disbursed as follows: IT the taking or conveyance involves a portion of the Com.mon Area on which improvements have been constructed, the Association shall restore or replace such improvements on the, remaining land included in the Common Area to the extent available, unless within 60 days after such taking Declarant, during the Development and Sale Period, and Owners entitled to cast at least 75% of the total votes in the Association shall otherwise agree. Any such construction 35 B31614 - P543 shall be in accordance with plans approved by the Board. The provisions of Section 10.2 regarding funds for restoring damaged improvements shall apply. If the taking or conveyance does not involve any improvements on the Common Area, if a decision is made not to repair or restore, or if net funds remain after any such restoration or replacement is complete, then such award or net funds shall be deposited to the Association's capital reserve account to be used in such manner as the Board deems appropriate. 17. COMPLIANCE AND ENFORCEMENT. 17.1. Compliance. Every Owner and occupant shall always endeavor to observe and promote the cooperative purposes for which the Association was established. Each Owner shall comply, and shall be responsible for ensuring that any tenant and other occupants of such Owner's Unit, their family, and guests, comply with all provisions of the Governing Documents. Every Owner, occupant, and visitor to a Unit shall be subject to sanctions for violations as described in this Section 17. Each Owner shall be responsible for, and may be sanctioned for, all violations of the Governing Documents by such Owner and by the occupants of or visitors to such Owner's Unit, and for any damage to Highland Park Townhomes I that any of them cause. 17.2. Remedies for Non -Compliance. The Association, Declarant, and every Owner shall have the right to file suit at law or in equity to enforce the Governing Documents, subject to the dispute resolution procedures set forth in Section 18, as applicable. In addition, the Board may impose sanctions for violation of the Governing Documents, including those listed below and any others described elsewhere in the Governing Documents. (a) Sanctions Requiring Prior Notice and Hearing. After written notice and an opportunity for a hearing in accordance with the By -Laws, the Board may: (i) imposing reasonable monetary fines (subject to the limitations set forth in Section 47F-3-107 of the Act), which shall constitute a lien upon the violator's Unit (In the event that any occupant, guest or invitee of a Unit violates the Governing Documents and a fine is imposed, the fine shall first be assessed against the violator; provided, however, if the fine is not paid by the violator within the time period set by the Board, the Owner shall pay the fine upon notice from the Board); (ii) suspend an Owner's right to vote (except that no notice or hearing is required if the Owner is more than 60 days delinquent in paying any assessment and the Association has filed a lien against the Owner's Unit); (iii) suspend any person's right to use any Common Area facilities (A) for any period during which any charge against such Owner's Unit remains delinquent, and (B) for a period not to exceed 30 days for a single violation or for a longer period in the case of any continuing violation (except that no notice or hearing is required if the Owner is more than 60 days delinquent 36 B31614 - P544 in paying; any assessment or other charge owed the Association):. authorize the Board to limit access to or from a Unit; (iv) suspend services the Association provides (except that no notice or hearing is required if the Owner is more than 60 days delinquent in paying any assessment or other charge owed to the Association); (v exercise self-help or take action to abate any vio ation of the Governing Documents in a non -emergency situation (including removing personal property that violates the Governing Documents); (vi) without liability to any person, preclude any contractor, subcontractor, agent, employee, or other invitee of an ()wrier who fails to comply with the Governing Documents from continuing or performing any further activities in Highland Park iownhomes l; tvrr bar any pet # ,el upon the Common Areas, if the pet owner fails to comply with Association rules regulating pets.„ or if the Board determines in its sole discretion that the pet is a danger to occupants of other Units, creates a nuisance or an unreasonable disturbance, or is otherwise kept in violation of this Declaration or the Rules. The Board may charge pet. owners a user fee for use of the Common Areas, which may be a general fee for all similarly situated persons or a specific fee imposed for failure of an Owner or occupant to abide by the Rules on Exhibit "C.°' and Association Rules applicable to pets; (viii) levy Specific Assessments to cover costs, including attorneys fees, that the Association incurs in bringing a Unit into compliance with the Governing Documents or otherwise taking enforcement action; and record a notice of vit e pect to any Unit as to which a violation If, after notice and an opporttn it ° for a hearing, the violation continues or recurs wttntn rz. months after the date of such notice, the Board may irtpoe any of the above sanctions without further notice or opportunity for another hearing. (b) Other Sanctions. The Board may take the following actions to obtain compliance with the Governing Documents without prior notice or a hearing: (i) exercise self-help or take action to abate a violation in any situation which requires prompt action to avoid potential injury or damage or unreasonable inconvenience to other persons or their property (:specifically including, but not limited to, the towing of vehicles that are in violation of parking Riles), without liability for trespass or otherwise to any person; (ii) exercise self-help or take action to abate a violation on the Common Areas under any circumstances; (iii) require an Owner, at the Owner's expense, to perform maintenance or to cure any violation of the Governing Documents relating to such Owner's Unit; 37 B31614 - P545 (iv) enter the property and exercise self-help to remove or cure a violating condition if an Owner fails to take action as required pursuant to subsection (iii) above within 10 days after receipt of written notice to do so, and any such entry shall not be deemed a trespass; (v) bring suit at law for monetary damages or in equity to stop or prevent any violation, or both. All remedies set forth in the Governing Documents shall be cumulative of any remedies available at law or in equity. In any situation in which the Association incurs legal fees and/or costs to enforce the Governing Documents, it shall be entitled to assess and recover from the violator or the Owner of the Unit in which the violator resides all costs reasonably incurred, including, without limitation, attorneys fees and court costs, whether or not suit is filed. 17.3. Board Decision to Pursue Enforcement Action. The decision to pursue enforcement action in any particular case shall be left to the Board's discretion, except that the Board shall not be arbitrary or capricious in taking enforcement action. For example, the Board may determine that, in a particular case: (a) the Association's position is not strong enough to justify taking any or further action; (b) the covenant, restriction, or rule being enforced is, or is likely to be construed as, inconsistent with applicable law; (c) although a technical violation may exist or may have occurred, it is not of such a material nature as to be objectionable to a reasonable person or to justify expending the Association's resources; or (d) it is not in the Association's best interests, based upon hardship, expense, or other reasonable criteria, to pursue enforcement action. A decision not to enforce a particular provision shall not prevent the Association from enforcing the same provision at a later time or prevent the enforcement of any other covenant, restriction, or rule. 17.4. Attorneys Fees and Costs. In any action to enforce the Governing Documents, if the Association prevails, it shall be entitled to recover all costs, including, without limitation, attorneys fees and court costs reasonably incurred in such action. 17.5. No Waiver. The failure of the Board to enforce any provision of the Act or of the Declaration, By - Laws, or any rule or regulation shall not be deemed a waiver of the right of the Board to do so thereafter. 38 B31614 - P546 17,6; Enforeentent of Ordinances. The Association, by contract or other agreement, may enforce applicable city and county ordinances. In addition, the city of Charlotte and Mecklenburg County may enforce their respective ordinances within Highland Park Townhomes L. 18. DISPUTE RESOLUTION. 1 8. 1, htareement to Encouratile Resolution of Disputes Without Litization, (a) Declarant, the Association and its officers, directors, and committee members, all Persons subject to this Declaration, and any Person not otherwise subject to this Declaration who agrees to submit to this Section 18 (collectively, "Bound Parties"), agree that it is in the best interest of all concerned to encourage the amicable resolution of disputes involving Highland Park Townhomes 1 without the emotional and financial costs of litigation. Accordingly, each Bound Party agrees not to file suit in any court, with respect to a Claim described in subsection (b), unless and until it has first submitted such Claim to the alternative dispute resolution procedures set forth in Section 18.2 in a good. faith effort to resolve such Claim; (b) As used in this Section 18, the term "Claim" shall refer to any claim, grievance or dispute arising out of or relating to (1) the interpretation, application, or enforcement of the Governing Documents; or (ii.) the rights, obligations, and duties of any Bound Party under the Governing Documents, or (iii) the design or construction of improvements within Highland Park Townh.omes 1, other than matters of aesthetic judgment under Section I 1, which shali not be subject to review; except that the following shall not be considered "Claims" unless all parties to the matter otherwise agree to submit the matter to the procedures set forth in Section 18.2: (i) from any Owner; any suit by the Association to collect assessments or other amounts due (ii) any suit by the Association to obtain a temporary restraining order (or emergency equitable relief) and such ancillary relief as the court may deem necessary in order to maintain the status quo and preserve the Association's ability to enforce the provisions of this Declaration relating to creation and maintenance of community standards, and any suit by the Association to enforce the Governing Documents if the Association has already complied with the notice and hearing procedures set forth in the By -Laws; and 39 B31614 - P547 (iii) any suit which does not include Declarant or the Association as a party, if such suit asserts a Claim which would constitute a cause of action independent of the Governing Documents; (iv) any suit in which any indispensable party is not a Bound Party; and (v) any suit as to which any applicable statute of limitations would expire within 180 days of giving the Notice required by Section 18.2(a), unless the party or parties against whom the Claim is made agree to toll the statute of limitations as to such Claim for such period as may reasonably be necessary to comply with this Section. 18.2. Dispute Resolution Procedures. (a) Notice. The Bound Party asserting a Claim ("Claimant") against another Bound Party ("Respondent") shall give written notice ("Notice") to each Respondent and to the Board stating plainly and concisely: (i) the nature of the Claim, including the Persons involved and the Respondent's role in the Claim; Claim arises); (ii) the legal basis of the Claim (Le., the specific authority out of which the (iii) the Claimant's proposed resolution or remedy; and (iv) the Claimant's desire to meet with the Respondent to discuss in good faith ways to resolve the Claim. (b) Negotiation. The Claimant and Respondent shall make every reasonable effort to meet in person and confer for the purpose of resolving the Claim by good faith negotiation. If requested in writing, accompanied by a copy of the Notice, the Board may appoint a representative to assist the parties in negotiating a resolution of the Claim. (c) Mediation. If the parties have not resolved the Claim through negotiation within 30 days of the date of the notice described in Section 18.2(a) (or within such other period as the parties may agree upon), the Claimant shall have 30 additional days to submit the Claim to mediation with an entity designated by the Association (if the Association is not a party to the Claim) or to an independent agency providing dispute resolution services in the Charlotte, North Carolina metropolitan area. The mediator shall notify the parties in writing of the date, time and Location of the mediation, which shall be within 25 days after the mediator receives the written request from the Claimant. The provisions of N.C.G.S. 7A-38.3F(d), (h), and (i) shall apply to any mediation hereunder. If the Claimant does not submit the Claim to mediation within such time, or does not appear for the mediation when scheduled, the Claimant shall be deemed to have waived the Claim, and the Respondent shall be relieved of any and all liability to the Claimant (but not third parties) on account of such Claim. 40 B31614 - P548 If the Parties do not settle the Claim within 30 days after submission of the matter to mediation, ar within such time as determined reasonable by the mediator, the mediator shall issue a notice of termination of the mediation proceedings indicating that the parties are at an impasse and the date that mediation was terminated. The Claimant shall thereafter be entitled to file suit or to initiate administrative proceedings on the Claim, as appropriate,. Each Party shall bear its own costs of the mediation, including attorneys' fees, and each Party shall share equally all fees charged by the mediator, Alternative Dispute Resolution Process Notice of Claim Negotiation Mediation Termination of Mediation Or Settlement (d) Settlement Any settlement of the Claim through negotiation or mediation shall be documented in writing and signed by the parties. If any party thereafter fails to abide by the terms of such agreement, then any other party may file suit or initiate administrative proceedings to enforce such agreement without the need to again comply with the procedures set forth in this Section. In such event, the party taking action to enforce the agreement or award shall, upon prevailing, be entitled to recover from the non -complying party (or if more than one non- complying party, from all such parties in equal proportions) all costs incurred in enforcing such agreement or award, including,. without limitation, attorneys' fees and court costs. I 8.3, Initiation.of Litigation by Associalion. In addition to compliance with the foregoing alternative dispute resolution procedures, if applicable, the Association shall not initiate any judicial or administrative proceeding unless first approved by a vote of persons entitled to cast 75% of the total votes in the Association, except that no such approval shall be required for actions or proceedings; (a) initiated during the Declarant Control Period; (b) initiated to enforce the provisions of the Governing Documents, including co —Lion of assessments and foreclosure of liens; (c) initiated to challenge ad valorem taxation or condemnation proceedings; (d) initiated against any contractor., vendor, or supplier of goods ar services arising out of a contract for services or supplies; or (e) to defend claims filed against the Association or to assert counterclaims in proceedings instituted against it. This Section 18.3 shall not be amended unless such amendment is approved by the same percentage of votes necessary to institute proceedings. 41 B31614 - P549 19. AMENDMENTS. (a) By Declarant. In addition to the specific amendment rights granted elsewhere in this Declaration, during the Declarant Control Period, Declarant may unilaterally amend this Declaration for any purpose. However, any unilateral amendment by Declarant pursuant to this Section shall not materially adversely affect the allocation of voting rights or assessment burdens among the Units or title to any Unit unless the Owner shall consent in writing. (b) By the Board. Subject to the Act, the Board may amend this Declaration for the purpose of (i) bringing any provision into compliance with any applicable governmental statute, rule, regulation, or judicial determination; (ii) enabling any reputable title insurance company to issue title insurance coverage on the Units; (iii) enabling any institutional or governmental lender, purchaser, insurer or guarantor of mortgage loans to make, purchase, insure or guarantee mortgage loans on the Units; or (iv) complying with the requirements of any state or federal law or any local, state or federal governmental agency. (c) By the Owners. Except as otherwise specifically provided above or elsewhere in this Declaration, this Declaration may be amended only by the affirmative vote or written consent of Owners entitled to cast not less than 67% of the total votes in the Association. During the Development and Sale Period, Declarant's written consent shall also be required. Notwithstanding the above, the percentage of votes necessary to amend a specific clause pursuant to this subsection (c) shall not be less than the prescribed percentage of affirmative votes required for action to be taken under that clause. (d) Validity and Effective Date. Any amendment pursuant to subsection (a) shall be signed on behalf of Declarant. Any amendment pursuant to subsections (b) or (c) shall be prepared, executed, certified and recorded on behalf of the Association by any officer designated for such purpose or, in the absence of such designation, by the Association's President. No amendment may remove, revoke, or modify any right or privilege of Declarant or its affiliates without the written consent of Declarant (or the assignee of such right or privilege). If an Owner consents to any amendment to this Declaration or the By -Laws, it will be conclusively presumed that such Owner has the authority to consent, and no contrary provision in any Mortgage or contract between the Owner and a third party will affect the validity of such amendment. Any amendment shall become effective upon recording unless a later effective date is specified in the amendment. No action to challenge the validity of an amendment may be brought more than two years after its recordation. In no event shall a change of conditions or circumstances operate to amend any provisions of this Declaration. 20. GENERAL PROVISIONS. (a) Brownfields Agreement. Highland Park Townhomes I is subject to and is required to remain in compliance with the "Brownfields Agreement" attached as Exhibit A to the Notice of Brownfields Property recorded in Deed Book 31420, Page 215, et seq., of the Mecklenburg 42 B31614 - P550 County, North Carolina land records, as may be amended from time to time, including die restrictions on use of the property as set forth in the Brownfields Agreement. Among other things, the Brownfields Agreement requires the installation of systems, including vapor mitigation systems, within the Units for monitoring, mitigating,remediating., and/or testing for vapor intrusions. The Association shall be responsible for maintaining and operating such systems and for monitoring indicated results. Declarant hereby reserves a non- exclusive easement for the installation of, and creates and grants to the Association a non-exclusive easement in the Units for the existence of and for the maintenance„ repair, replacement, inspection, and monitoring or testing of, any such systems required under the Brown fields Agreement and for access through the Unit as necessary to perform such .maintenance, repair, replacement, inspections, and monitoring or testing as required under the Brownfield Agreement and as the Board may deem necessary or advisable from time to time. Such easement may be exercised by the Association's directors, officers, agents, employees, manager, contractors, and by public safety. officials acting in their official capacity; provided, except in instances involving manifest danger to public safety or property, the Association shall enter a Unit only during reasonable hours and shall make a reasonable effort to Rive notice to the Unit Owner prior to such entry, In the event an Owner fails to cooperate and provide the Association with access to his or her Unit, the Association shall have the right to exercise self-help and enter the Unit for the purposes described in this paragraph without express permission from the Unit Owner and such entry shall not be deemed a trespass. The Association shall he responsible for repairing any incidental damage to the Unit resulting from the Association's access through or activities in the Unit. No Unit Owner nor any occupant of any Unit, nor any contractor, agent, or invitee of the Owner or occupant, shall remove, alter, disrupt, disconnect, or otherwise interfere with the installation or operation of any system(s) installed in a Unit to comply with the Brownfield Agreement in any manner, or block access to such system(s) in any way, without the prior written consent of the Association, which consent may be granted, denied, or subject to reasonable conditions, in the Board's discretion, As provided in the Brownfields Agreement, during January of each year, the owner of any part of Highland Park Townhomes I, as of January Iof that year, shall submit a notarized "Land Use Restrictions Update" to the North Carolina Deparunent of Environmental Quality and to the chief public h.calth and environmental officials of Mecklenburg County, North Carolina, certifying that, as of said January l', the Notice of Brownfields Property containing the land use restrictions set forth in the Brownfields Agreement remains recorded and that the land use restrictions are being complied with, The Association niay assume responsibility for submitting the LURU on behalf of some or all Owners in the manner provided in the Brownfields Agreement and, in such event, shall notify such Owners accordingly. The costs incurred by the Association in compliance with its responsibilities under this Section 20(a) shall be Common Expenses to be levied as General Assessments against all Owners or, as may be appropriate under the circumstances, as Specific Assessments against particular Unit Owners. 43 B31614 - P551 Notwithstanding anything in this Declaration to the contrary, this Section 20(a) may not be amended without the written consent of the Secretary of the North Carolina Department of Environmental Quality (or its successor in function), or his or her delegate. (b) No Discrimination. Neither the Association nor the Board shall take any action that would discriminate against any person on the basis of race, creed, color, national origin, religion, sex, familial status or handicap. (c) Severability. Whenever possible, each provision of this Declaration shall be interpreted in such manner as to be effective and valid, but if the application of any provision to any person or under any circumstances is held by judgment or court order to be invalid, such invalidity shall not affect any other provision or the application of such provision which can be given effect without the invalid provision or application. To this end, the words and provisions of this Declaration are declared to be severable and any court having jurisdiction may strike such portions as are declared invalid and edit the remainder as necessary to carry out Declarant's original intent to the maximum extent possible. (c) Term and Termination. This Declaration, as it may be amended, is intended to have perpetual duration, subject to North Carolina law and the right of the Owners to terminate this Declaration and the planned community established by this Declaration as provided in this sub -Section (c). This Declaration may be terminated only upon recording a termination agreement signed by the then Owners of at least 80% of the Units. In addition, during the Development and Sale Period, the written consent of the Declarant shall be required. In such case, this Declaration shall terminate on the date specified in the termination document; provided, nothing in this Section shall be construed to permit termination of any easement created in this Declaration without the consent of the holder of such easement. If any provision of this Declaration would be unlawful, void, or voidable by reason of any rule restricting the period of time that covenants can affect title to property, that provision shall expire 21 years after the death of the last survivor of the now living descendants of Elizabeth II, Queen of England. (e) Exhibits. Exhibits "A" and "B" are incorporated by this reference and Section 19 shall govern amendment of those exhibits. Exhibit "C" may be amended as provided in Section 6.4(d) or pursuant to Section 19. Exhibit "D" is attached for informational purposes only and may be amended as provided in that exhibit. [continued on next page] 44 B31614 - P552 IN WITNES- OF THE FOREGOENG, Declarant has executed this Declaration this day of , 20 DECLARANT: CCH-HIGHLAND MILL LLC, a North Carolina limited liability company STATE OF NORTH CAROLINA ) ) SS COUNTY 0 Notary Public in and for M 1nbufg County, North Carolina, certify that .4..r personally came before me this day and acknowledged that sfhe of CCH-HIGHLAND MILL, LLC, a North Carolina limited liability company, and that by authority duly given a,t4 as a fact of said limited Iiabicoinpany, the foregoing instrument was signed in its name by r--i- L.), as , on behalf of said limited liability company. Witness my hand and official stamp or seal, this _ day of , 20! . 551OHiHad Rack To wmhozn 45 B31614 - P553 EXHIBIT "A" Leaa1 Description of Submitted Property SEE ATTACHED METES & BOUNDS DESCRIPTIONS OF PARCEL SAND PARCEL 4 HIGHLAND MILL LOFTS B31614 - P554 METES AN[) B NDS DESCRIP "IN PARCEL ,r HIG I `L) MILLS 1 I 'S THAT CERTAIN PIECE, PARCEL OR TRACT OF LAND SITUATED IN CITY OF CHARLOTTE MECKLENBURG COUNTY, NORTH CAROLINA AND BEING W1ORE PARTICI_ILARLY DESCRIBED AS FOLLOWS: COMMENCING AT A FOUND PK NAIL ON THE NORTHERN RIGHT OF WAY OF NORTH BREVARD STREET SAID STREET HAVING A 50' PUBLIC RIGHT OF WAY; THENCE WITH THE RIGHT OF WAY N 66-45-16 W 43,50 FEET TO A SET PK NAIL, SAID NAIL BEING THE POINT Or BEGINNI NG; THENCE CONTINUING. WITH THE RIGHT OF WAY N 66-45-16 W 312,81 FEET TO A SET PK NAIL; THENCE LEAVING THE RIGHT OF WAY N 23-14-44 E 65,93 FEET TO A SET PI< NAIL; THENCE WITH THE ARC CURVE TO THE RIGHT HAVING A RADIUS OF 15 FEET AN ARC LENGTH OF 23.53 FEET AND CHORD BEARING AND DISTANCE OF N 68.11-38 E 21.19 FEET TO A FOUND 04 REBAR; THENCE S 66-5 I.28 E 28181 FEET TO A FOUND 04 REBAR; THENCE WITH. THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS 15.00 FEET AN ARC LENTH OE;` 23.59 FEET AND A CHORD BEARING AND DISTANCE OF S 21-48-22 E. 21.23 FEET TO A SET PK NAIL; THENCE 5 2.3.14-44 W 66.44 FEET TO THE POINT OF BEGINNING CONTAINING 0,581 ACRES TOTAL AS SHOWN ON PRELIMINARY SURVEY BY METROLINA ENGINEERING AND SURVEYING ASSOCIATES DATED 06/D2/ 16. THIS ALSO BEING THE SAME PROPERTY AS LOT (3) THREE "A" PARCEL (3) THREE AS SHOWN IN MAP BOOK 54 PG .159 IN THE MECKLENBURG COUNTY REGISTRY. B31614 - P555 METES AND BOUNDS DESCRIPTION PARCEL 4 HIGHLAND MILLS LOFTS THAT CERTAIN PIECE, PARCEL OR TRACT OF LAND SITUATED IN CITY OF CHARLOTTE MECKLENBURG COUNTY, NORTH CAROLINA AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT A FOUND #4 REBAR ON THE NORTHERN RIGHT OF WAY OF NORTH DAVIDSON STREET SAID STREET HAVING A 55' PUBLIC RIGHT OF WAY; THENCE WITH THE RIGHT OF WAY N 55-53-54 E 286.77 FEET TO A FOUND PK NAIL, SAID BEING THE POINT OF BEGINNING; THENCE LEAVING THE RIGHT OF WAY N 34-21-43 W 444.81 FEET TO A FOUND #4 REBAR; THENCE N 55- 36-54 E 82.51 FEET TO A FOUND #4 REBAR ON THE WESTERN RIGHT OF WAY LINE OF EAST 33" STREET; THENCE WITH THE RIGHT OF WAY S 33-54-28 E 425.28 FEET TO A FOUND #4 REBAR; THENCE LEAVING THE RIGHT OF WAY WITH THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 20.00 FEET AN ARC LENGTH OF 31.35 FEET AND A CHORD BEARING AND DISTANCE OF S 10-59-42 W28.24 FEET TO A FOUND PK NAIL ON THE NORTHERN RIGHT OF WAY LINE OF NORTH DAVIDSON STREET; THENCE WITH THE RIGHT OF WAY S 55-53-52 W 59.05 FEET TO THE POINT OF BEGINNING CONTAINING 0.823 ACRES TOTAL AS SHOWN ON PRELIMINARY SURVEY BY METROLINA ENGINEERING AND SURVEYING ASSOCIATES DATED 06/02/16. THIS ALSO BEING THE SAME PROPERTY AS PARCEL (4) FOUR AS SHOWN IN MAP BOOK 38 PG 755 fN THE MECKLENBURG COUNTY REGISTRY. B31614 - P556 Le2a1 De EXHIBIT "B" iptionof Expansion Prqpertv Any real property described in or subject to the Cost Sharing Agreement described in Section 5.1 I of this Declaration and any real property lying and being within a one mile radius of any of such property, LESS AND:EXCEPT that property described on Exhibit "A. B31614 - P557 EXHIBIT "C" Rules Unless expressly authorized by, and then subject to such conditions as may be imposed by, the Board, the following activities are prohibited within Highland Park Townhomes 1: (a) Regular parking of vehicles on Highland Park Townhomes I property by the Owners and occupants in places other than in the garage serving the Unit, except that visitors may park for a limited time in Common Area parlcing spaces; however, construction, service and delivery vehicles shall be exempt from this provision during normal business hours for such period of time as is reasonably necessary to provide service or to make a delivery to a Unit or the Common Areas. (b) Raising, breeding, or keeping animals except that a reasonable number of dogs, eats, or other usual and common household pets may be permitted in a Unit. However, those pets which are permitted to roam free, or, in the Board's sole discretion, make objectionable noise, endanger the health or safety of, or constitute a nuisance or inconvenience to the occupants of other Units shall be removed upon the Board's request. If the pet owner fails to honor such request, the Board may remove the pet. Dogs and cats shall be kept on a leash held by a responsible person or otherwise contained whenever outside the Unit and the pet owner shall promptly remove and appropriately dispose of any pet droppings. Pets shall be registered, licensed, and inoculated as required by law; (c) Any activity that emits smoke or foul or obnoxious odors outside the Unit or creates noise or other conditions that tend to disturb the peace or enjoyment of the Common Areas or other Units, or threaten the safety of the occupants'ofother Units; (d) Any activity that violates local, state, or federal laws or regulations; however, the Board shall have no obligation to take enforcement action in the event of a violation; (e) Any activity which in the reasonable determination of the Board is noxious or offensive, or which threatens the health or safety of, or tends to cause embarrassment, discomfort, annoyance, or nuisance to persons using the Common Areas or to the occupants of other Units; (f) Use or discharge of any radio, loudspeaker, horn, whistle, bell, or other sound device so as to be audible to occupants of other Units; (g) Discharge of fireworks or firearms; however, the Board shall have no obligation to take action to prevent or stop such discharge; (h) Use of any Unit on a regular basis to host meetings, classes, parties, or similar recurring activities that involve large numbers of guests entering and exiting the Unit and Highland Park Townhomes I; 1 B31614 - P558 EXHIBIT Rules (continued) Instailation of any satellite dish or antennae outside of a Unit. except to the extent that any such apparatus must be permitted by applicable law. Declarant and the Association may, but shall not be obligated to, erect an aerial, satellite dish. or other apparatus for a master antenna. cable. or other communication system for the benefit of the Units: (If Erecting. posting. or placing any "for sale." "for lease." or other sigik banner. or advertisement of any kind on the Common Areas. or in any Unit so as to he visible from outside the Unit. except as may be permitted in accordance with Section I I of the Declaration: however. the Board may provide a bulletin board or other display area on the Common Areas where Owners can place notices regarding Units available for sale or lease: (k) Accumulation of excessive rubbish, trash. and garbage in a niL or disposal on the Common Areas in places other than designated trash receptacles: (1) Disposal of hazardous or toxic materials or chemicals, used motor oil. or items other than normal household refuse on Highland Park 'Townhomes I property: (m) Undertaking any act or work which_ in the Board's judgment. will impair the structural soundness or integrity of another Unit or the Common Areas, impair any easement. or otherwise have a material adverse affect other Units or their Owners or occupants: (n) Keeping or storing anvthing on Highland Park Townhomes I which would increase the rate of insurance on Highland Park fownhomes 1.which would be in violation of any: statute. rule, ordinance, regulation. permit or other validly imposed requirements of any governmental body, or which vvould otherwise increase the Common Expenses: tot. Directing,. supervising, or in any manner attempting to assert any control over the Association's employees, if any: (p) Application of any type of reflective film or coating on any window. or installation or use or indow treatments or coverines visible from outside the Unit other than draperies. shades or blinds with the visible side beint4 white. oft -white, or light beige: (q) Storing, keeping. or allowing personal property, to remain upon any portion of the. Common Area other than on a Limited Common Area balcony or patio for a period of more than 24 hours: (r) Conversion of any garage within a Unit to storage or other uses that preclude its use for parking of the number of vehicles for which it is designed or intended. and (s) Any alteration or addition to the exterior ')fany budding or Common Area. except as may he expressly authorized pursuant to Section I. or otherwise authorized under this Declaration or applicable law, B31614 - P559 EXHIBIT "D" By -Laws of Ilizhland Park Townhomes I Owners Association, Inc, SEE ATTACHED B31614 - P560 BY-LAWS OF HIGHLAND PARK TOWNHOMES I OWNERS ASSOCIATION, INC. B31614 - P561 TABLE OF CONTENTS PAGE Article 1 Name, Principal Office, and Definitions 1 1 1.1. Name. 1 1?. Principal Office. 1 I.3. Definitions Article 11 Membership: Meetings, Quorum, Voting, Proxies 1 1 2.1. Membership. 2.2. Place of Meetings 1 1 2.3. Annual and Regular Meetings. 1 2.4. Special Meetings. 2 2.5. Notice of Meetings 2 2.6. Waiver of Notice, 3 2.7. Adjournment of Meetings. 3 2.$. Voting. 4 2.9. Proxies 4 2.10. Quorum. 4 2.11. Conduct of Meetings. 4 2.12. Action Without a Meeting; Voting by Written or Electronic Ballot. Article I11 Board: Selection, Meetings, Powers 6 A. Composition and Selection 6 3.1. Governing Body: Qualifications. 66 3.2. Number of Directors. 6 3.3. Selection of Directors: Term of Office. 7 3.4. Nomination and Election Procedures 8 3.5. Removal of Directors and Vacancies B. Meetings 8 3.6. Organizational Meetings. 8 8 3.7. Regular Meetings. 8 3.8. Special Meetings. 8 3.9. Notice: Waiver of Notice. 8 3.10. Telephonic Participation in Meetings: Remote Meetings 3.11. Quorum of Board; Voting 9 10 3.12. Conduct of Meetings 10 3.13. Open Meetings: Executive Session 10 3.14. Action Without a Formal Meeting,. C. Powers and Duties. 10 3.15. Powers 1011 3.16. Duties. E}31614-F»552 _,__~~_.._,__'—,\2 Article IV ��fficcm--.—.--..—_.___^—.—'—.~'.—~_.—.' ~,.._`^..._~~_—~.|2 4 � ()[G���� .~--~...` � � —~'--~^--'' ..|- 4.2 C�oivnun�[�nno�O[Dc��'--~---~—'--~~—^—'—~---~------' ' �� - ' |2 43 � uvm|mndHU\n��fvucanc/u,----._-----_-------� .� ..^~------------)3 4.4. Powers and Uunc*..---~--.—.--'---~--^-- '-^'—'~-^-~.__..~.1} /�rt�ho �� o�ooImi/tc*m~...-......_.-.—.~..~~,...-_.^__—~._- ..`..—..~--..\3 General, --~--~^'--'^^--~^'^^--~~^--''~'—� ---^`--~~~'--~~ ,....|] 52. Covenants- ........ Article Vl Standards n[Comduct;LiabU���wodlndomni0cmd0n—..~.....~--.~.—.—_ 13 )} � b | �Lundurdof�rDi���L�nndO[§ccr �------__.~_—.-~_...-...----~—_ � � - ' ___,__|4 h2 LiuhiUg� ~._—.._—^~.—_^-.~—..~,___,.__ ' � , ~'--~^—~^^~—' |� 63 |nJcmn/�cudnn ^_—_---.-----_---.—_—_---' � � �^''---' ------~---~-------|4 6.4 —'-----------___~____,~....... 6,5� Board, and Ogocer Tnumv/�--_---.------ l� Article VI[ Manauenmcmt and Accounting ...................................................... ....... .......... ~. |5 7 | ncc�o�s aod()Ml�crs� ..—_—_---^--'.~------.--.. ' ' �� � \6 /\cUon` . ------- 7 Z Riuh�nf �pru�a --_..~--~--_—_—. . '� . - . � &�unn�m�/\�cn� ------~-----'---- -- � � � '--'---' 7,4 A��2�p�s andk�gwr� ..---_—~._--'—~—~_—_------'� ' ' '— 7.5^ Bmnovin--~''--'^'--~---~~--~—'—~--'~^—' \G T7. .|8 -l8 Article VllI Enforcement Procedures ......................... .............................. ..................... .. __,.___.'|8 8\ No��eand Responsc --------------.—_------ � � . --. _----~---.—�� 8�2' '-~— ||�m�m�� -----~'— 9 83. /\ppco\...... _`—.—.^.`...... ~—_........ ~^........ ~.......... .......... .~.� '- LT eement.s.Co[ormus.Uccds.Lcascs,Chcckx`6\c� Article IX Miscellaneony. ' 91 Fiscal Y��r. `~—'^'^^^—`~'~—^^^`~^--^^^^--'---' � � ' � '^--^~`--' ,,__!9 9 2 P»,6mn*mmzy Rules. __~-----^.~—_—.--_—_—_~..--� �--� ________—..|9 Y 3 Con���m ^--^~--^~^---~---'^—^-'^—' � � '--'~-----'� ------.'28 94 Bow�oan� Rccqrd�= --'--------------_------' � ' � —' __.__,__,_,__—..�| V j y�op��o ^—~—^'—~^---'^^'--^^'~'-----� � � �^------' ----_2� A nt. ,`~'~__19 ~ ' o B31614 - P563 BY-LAWS OF HIGHLAND PARK TOWNHOMES I OWNERS ASSOCIATION, INC. Article 1[ Name, Principal Office, and Definitions 1.1. Name. The name of the corporation is Highland Park Townhomes 1 Owners Association. Inc. (the "Association"). 1.2. Principal Office. The principal office of the Association shall be located in Mecklenburg County. North Carolina, or such other location within 20 miles of Highland Park Townhomes 1 as the Associa- tion's board of directors ("Board") may designate from time to time. The Association may have such other offices, either within or outside the state ofNorth Carolina, as the Board may determine or as the affairs of the Association may require. 1.3. Definitions. Unless otherwise specified, the words used in these By -Laws shall be given their normal. commonly understood definitions except that. unless the context otherwise requires. capitalized terms used in these By -Laws shall have the same meaning as set forth in the Declaration of Cove- nants. Conditions. and Restrictions for Highland Park Townhomes 1 recorded in the Office of the Register of Deeds of Mecklenburg County, North Carolina (as it may be amended and supple- mented, the "Declaration"). The term "majority." as used in these By -Laws. means those votes. Owners, or other group, as the context may indicate, totaling more than 50% of the total eligible number. Article H Membership: Meetings, Quorum, Voting, Proxies 2.1. Membership. The Association shall have a single class of membership, as more fully set forth in the Declaration and the Articles of Incorporation. The Declarant, by recording of the Declaration. and each Owner of a Unit. by accepting record title to the Unit or recordation of a contract of sale, is deemed to consent to membership in the Association. Membership shall be resigned or transferred only upon transfer of title to the Unitas provided in the Declaration. The provisions of the Decla- ration pertaining to membership and the designations, qualifications, rights. privileges and obliga- tions of each class of membership are incorporated by this reference. 2.2. Place of Meetings. Meetings of the Association shall be held at the principal office of the Association or at such other suitable place convenient to the Members as the Board may designate. 1 B31614 - P564 Annual and Regular Meeiii first meeting of the Associationwhether a regular or special meeting, shall be held prior to the end of the Association's first full fiscal year following the date of incorporation of the Association. The Board shall schedule subsequent regular annual meetings to occur during the fourth quarter of the Associations fiscal year, on such date and at such time and place as the Board shall determine, In the Boards discretionadditional regular meetings of the membership ma be held in accordance with a schedule for regular meetings published by the Board. 2.4, Special Meetings, The President or any two members of the Board may cad special meetings of the - Tiber - ship. In addition. the President or Secretary shall call a special meeting if so directed by Board resolution or upon receipt of a petition. signed and dated by Members representing at least 109 or all votes entitled to be cast on any issue proposed to be considered. requestingthat a special meet- ing be called and stating the purpose thereof. Notice of such meeting shall be given within 15 days after receipt of any such petition and shall call for such meeting to be held within 30 days after the date of such notice. If the President or Secretary fail to comply with this requirement. then any Owner who signed the petition may cad such meeting by giving notice to the Owner ()leach Unit in accordance with Section 2.5 and Section 9.5. Notice of Meetings. (a) At least 10 days (or at least 30 days if notice is mailed by other than first class, registered or certified mail) but not more than 60 days before. any membership meeting. the Pres- ident. the Secretary, or the officers or other persons calling; the meeting shall deliver or cause to be delivered to each Member a written notice stating the place, day, and hour of the meeting and the items on the agenda for such meeting. including a description °tithe general nature of any proposed amendment to the Declaration or By -Las. any proposed budget changes, any proposal to remove a director. and any other matter to be put to a vote of the members. If proxies are permitted, the notice shall also state the procedures for appointing proxies, If the meeting is to be held solely by electronic communications or if participation in the meeting, is permitted by electronic communi- cationsas described in Section 2.i I below. the notice shall state the form of communications system to he used for the meeting and the means of accessing the communications system, No business shall be transacted at a special meeting, except as stated in the notice, Such notiec shall be delivered by such means as permitted under Section 9.5. (b) The Board may set a record date for determining who is entitled to receive notice of a meeting. which shall be no earlier than 70 days before the meeting date. If no record date is fixed by the Board, Members as of the close of business on the business day preceding the day on which notice is given or. if notice is waived. at the close of business on the business day preceding the day on which the meeting is held. are entitled to notice of the meeting and any person who is a Member on the date of such meeting shall be entitled to. vote on any matter coming before the Members for a vote. If a record date is set. the Association shall prepare an alphabetical listof the names of all Members entitled to notice of the meeting. showing the address and number of votes each member is entitled to cast, and shall prepare on a current basis through the time of the mem- bership meeting a list of members, if any. , who are entitled to. V o te at the meeting. but not entitled B31614 - P565 to notice of the meeting. Beginning two business days m etinQntile list of imembersven of hshall be availe meeting for which the list was prepared and continuing through the able at the Association's principal office or at a rseasonable b place N ember for the pu pose ofnotice in the city where the meeting will be held. For in pectian Y any com- munication with other Members concerning the meeting. The ersobyoAssociation with his representativesf Members available at the meeting. and any Member, personally is entitled to inspect the list at any time during the meeting or any adjournment thereof. 2.6. Waiver of Notice. nt of proper Waiver of notice of a meeting of the Members anvall be deemed the meeting of the Members. either before notice. Any Member may waive, in writing. noticeo or after such meeting and such waiver shall be� �lember,ed with o thee nutes of meeting in beldeemed Asso- ciation's records. Attendance at a meeting byf. waiver by such Member of notice of the time, date, nnotice at the place otime tlhe meetinlerisbcalled to er or the Member's proxy specifically objects to lack ofo proper order. Attendance at a special meeting so hhel be basis of lack of proper notice is raieemed waiver of notice of all bsed before the trans- acted at such meeting unless an objectionon business is put to a vote. 2.7. Ad'ournment of Meetings. not nt, a majority If any meeting of the Members cannot be held d'ourn the meetinguse a quorum sto a pmeeno fewer than of the Members who are present at such meeting } 1 5 nor more than 30 days from the scheduled date bor the iwhlmeeting. At the reconvened ich might have been transacted meeting, if a quorum is present, any business may etransacted at the meeting originally called. If a time and a11ace for r f Foranyreason ithe meeting, a new datef is t:ced xed by those in attendance at the meeting when orig Y calledord ide for reconvening the meeting or a new record date hesmeeting inadjournment, mannerthe pre�crbedhforpegular notice of the time and place for reconveniil�, tmeetings in Section 2.5(a). Members or their proxies present at a duly called or held meeting at which a quorum is present may continue to do business untilthana adjournment, uoru �; howevert atl ing east athe ma odepr styrof the votes suffi- cient number of Members to leave less q required to constitute a quorum, or such larger percentage ractions, must approve any action taken. Provi- sions these By -Laws, or applicable la sions of the Declaration regarding voting by co -Owners are incorporated herein by this reference. 2.8. Voting. Members shall have such voting rights as are set forth intheDeclaration. which op ovisioisiona are specifically incorporated by this reference. To the extent p by North membership vote on any matter may be conductediedin Sec on2 ai2goby ! r or byany combination a ballot Fof those imile transmission, or electronic message as provided methods. as the Board determines appropriate. The Board shall establish voting procedures to B31614 - P566 provide reasonable assurance that the person casting the vote is the Member or the Memberproxy, appointed pursuant to Section 2,9, 2„9, Proxies. Members may vote in person or by proxy. subject to the limitations of North Carolina law and subject to any specific provision to the contrary in the Declaration or these By -Laws, Every proxy shall be in writing. shall identify the Unit for which it is given. and shall be signed by the Member or his duly authorized attorney-in-faet, dated. and filed with the Secretary of the As„soci- ation prior to the meeting- for which it is to be effective. The Board may. in its discretion. accept proxies filed in person, by mail. by facsimile transmission. or electronically. provided they are signed and the Board has no reason to question the validity of the proxy, The Association shall have no obligation to recognize any proxy that is not actually,' received prior to the deadline estab- lished by the Board for delivery of proxies (w-hich deadline may be earlier for proNies sent via mail, facsimile or electronic transmission)„ Unless otherwise specifically provided in the proxy. a proxy shall be presumed to cover all votes which the Member giving such proxy is entitled to cast. and in the event of any conflict between two or more proxies purporting to cover the same voting rights, the later dated proxy shall prevail, or if dated as of the same date, both shall be deemed invalid, Every proxy shall be revocable unless otherwise specifically stated in the proxy and cola-. pled with an interest which has not been extinguished, A proxy shall 'automatically terminate upon: (a) transfer of title to any, Unit for which it was given; (I)) receipt by the Secretary of written notice of revocation of a revocable proxy or of the death or judicially declared inck„impetence of the Mem- ber who signed it: (c) attendance and voting by the Member at the meeting; or tc) I 1 months from the date of the proxy. unless a different period is specified in the proxy, in which case the period specified in the proxy shall control. subject to termination due to other events specified in this paragraph 2,10. Except as otherwise provided in these By -Laws or the Declaration. the presencein person. or by proxyof persons entitled to cast 2 of the total votes in the Association shall constitute a. quorum at all rnce(ings of the Association, and the castin, of ballots representing at least 20% of the total votes in the Association shall constitute a quorum for any membership vote conducted by means other than at a meeting; provided, if a quorum is not represented at any meeting, when originally calledthen the quorum for any subsequent attempt to convene such meeting shall be reduced to 10% of the total votes in the Association, During the Development and Sale Period, the presence of a representative of Declarant shall also be necessary to establish a quorum. 2.11. Cond e• • Meci s. [he President shall preside over all meetings of the Association, The Secretary shall ensure that minutes of the meetings are preparedreflecting all resolutions adopted and all other •transac- tions occurring at such meetings. The minutes shall be kept with the Association's books and records, 4 B31614 - P567 The Association may hold membership meetings and/or allow Members or their proxies to participate in any membership meeting by conference telephone or similar communications equip- ment or another suitable electronic communications system. including videoconferencing technol- ogy or the Internet, if the telephone or other equipment or system permits each person participating in the meeting to communicate with all other persons participating in the meeting. if voting is to take place at the meeting. the Association must implement measures to verify that every Member and proxy voting at the meeting by means of remote communication is sufficiently identified. 2.12. Action Without a Meeting: Voting by Written or Electronic Ballot. (a) Any action that the North Carolina Nonprofit Corporation Act requires or permits to be taken at a meeting of the Members may be taken without a meeting, without prior notice and without a vote. if all Members entitled to vote on such matter sign and submit a written consent or consents specifically authorizing the proposed action. Such consents shall be signed by the Mem- ber (or, if the Member is not an individual. by an authorized signatory of the Member). dated. and delivered to the Association within 60 days after receipt of the earliest dated consent. Such con- sents shall be filed with the Association's minutes and shall have the same force and effect as a vote of the Members at a meeting. ci ontshall be effective t venotice of any a10'days aftePsuch not eto his sentlis on shall be sent to all Members and such a (b) Alternatively, any action that may be taken at a meetingof the Members may be taken without a meeting if (i) the Association delivers a written or electronic ballot to every Mem- ber entitled to vote on the action, setting forth the proposed action and providing an opportunity to approve or disapprove the proposed action; and (ii) the number of vovotes cast er by such wriitten teone r lec(i- tronic ballot equals or exceeds the quorum required for a meeting to the number of votes cast in favor of the proposed action equals or exceeds the number of votes that • would be required to approve the action at a meeting if the total number of votes cast at such meeting were the same as the number of votes cast by ritten or electronic ballot, (c) Voting instructions or solicitation materials in connection with any vote for which ballots are permitted to be cast outside ofa meeting must provide instructions for casting the ballot or returning the consent in order to be counted. indicate the number of responses needed to satisfy the quorum requirement, the percentage of votes necessary to approve any action other than elec- tion of directors, a date and time within 60 days thereafter by which the ballot must be cast or consent returned in order to be counted. which deadline shall be not more than 60 days. A written or electronic ballot or signed consent. once cast or received by the Association. may not be re- voked. The Board shall notify the Members of the results of any vote conducted pursuant to this Section 2.12 within 10 days after the expiration of the voting period. A written ballot or written consent may be submitted to the Association by electronic mail transmission. provided that such ballot is accompanied by information indicating that the Member. Member's agent or Member's attorney -in -fact authorized its electronic transmission. Such consents and ballots (or in the case of electronic balloting. a written recorof the results of the balling) vthe same force and effect as a vote aolfbthe Members at a e filed with the minutes of the membership and shall hae meeting. (d) Whenever the governing documents permit action to be taken by affirmative vote or written consent. a written consent or a written or electronic ballot received pursuant to either 5 B31614 - P568 subsection or suhsectiofl (b) a.bove shall constituic! written consent or purposes o.f such provi- sion, (e) Nothingin this Section shall authorize action without the approval of such persons or entities whose approval is specifically required for such action under the Governing Documents. Article 111 Board: Selection, Meetings, Powers A. Composition and Selection. 3.1, ,Governine a .ificatic s. The affairs of the Association shall be governed by a Board, each of whom shall have one. vote. Except with respect to directors appointed by Declarant. directors Shan be Owners or resi- dents of Units, A "resident" shall be any natural person 18 years of age or older whose principal residence is a Unit. No more than one eligible person from any Unit may serve on the Board at any time. If an Owner is a legal entity, any officer, director,. or partner, or other representative designated in writing by the Owner, shall be eligible to serve as a director unless the Owner oth- erwise specifies by written notice to the Association provided, no Owner may have more than one such representative serving on the Board at a tine. except in the case of directors appointed by Decl.arant. 3.2, Number of Directors, The Board shall consist of three to five directors. as proided in Section 3..3. 3,3. Sele I Dire -tors: Term Office. (a) Initial Board. The initial Board shall consist of three directors appointed by De- clarant, who shall serve until their successors are appointed or elected as provided in this Section 3.3. The Board shall automatically increase to five persons as necessary to accommodate the elec tion of directors as provided in subsection (b) of this Section. The Board may. by. majority vote. increase the number of directors earlier than required under subsection (b) but there shall be a maximum of live directors at any time, (b) -s Duri Declartint Control Perod, Except as otherwise provided in this Section 3.3(b). Declarant shall he entitled to appoint. remove and replace the members ofthe Board in its sole discretion until termination of the Declarant Control Period, Not later than the next annual meeting after the time that Members other than Declarant own 50% of the maxi Mal num- ber of Units permitted by applicable zoning for the property specifically described in Exhibits "A" and "B" to the Declaration (Permitted Units") or whenever Declarant earlier determines. the President shall call for an election by which the Members other than Declarant shall be entitled to elect one director. The remaining two directors shall he appointees of Declarant, The director elected by the Members other than Declarant shall not be subject to removal by Declarant and shall be elected for a term of one year or until the happening of the event described in subsection tc) below. whichever is shorter. If such directors term expires prior to the happening of the event described in subsection (c), a successor shall be elected for a like term, 6 • B31614 - P569 (c) Directors Alter the Declarant Control Period. ant ntrol (i) Not later than 90 days afte�lemberstermination shall be e �itledrto ele�t three directors. President shall call for an election by which the Two directors shall serve a term expiring at theserve a term expiring at the first annual meet six-monthecond annual meeting following the g anniversary of their election and one director shall following the six-month anniversary of their election. as such directors determine among them- selves at the time of their election. (ii) Declarant shall be entitled to appoint, remove, and replace two directors until termination of the Development and Safe Period. at which time the term of the directors appointed by Declarant shall expire ne�tthe annualremaining eti directors which timell eentitled fvlembersto otllPpthan cessors to fill the vacancies until De- clarant shall elect a successor to serve a term of two years. (iii) Upon expiration of the term of office of each director elected by the Mem- elected bers. Members shall be entitled to elect a succesofFiee until their re resor to serve a terof pectsuccessorsyears. irectors have been by the Members other than Declarant shall hold elected. Directors may be elected to serve any number of consecutive terms. 3.4. Nomination and Election Procedures. (a) Nomination of Candidates. At least 30 days prior to any election of directors by the Members other than Declarant. the Board may apd°hree oromoreting Members (orerepe reseimau es of a chairman, who shall be a member of the Board. serve of Members which are legal entities). The e members the Nominating Committee The names of the members of thle Nomi- nating term of one year or until their successorsPp Committee shall be announced in the notice of each election. 1n preparation for each election. the Nominating Committee shall meet and make as many nominations for election to the Board as it he blemberits ds,otherion thaneDeclarantbattsuch elect o in no event leln than the number of positions to be filled by making its nominations, the Nominating Committee shall use reasonable efforts to nominate can- didates representing the diversity that exists withinin the 0O� �hpanential election �idates. held. or by write-in t s shall also be permitted from the floor any on any ballot. All candidates shall have a reasonable opportunity to communicate their qualifica- tions to the Members and to solicit votes. (b) Election Procedures. At each election. voting shall be by written or electronic bal- lot in accordance with Section 2.12(c). Each Member may cast all vote(s) assigned to its Unit(s) ing shall be for each position to be filled by Member vo�eu,ativenvot n`ve � willttake place or the proceduressed et that either the meeting notice states that cup b r of forth in N.C.G.S. $55A-7-25 are followed. Thihe greatest number of votes shall be elected. number of candidates equal to the eThe positions to be filled by Member votes receiving Association shall publish the names and addresses of all directors and officers within 30 days after any election of directors. B31614 - P570 35 Re Any director elected hy the vote of Members may be remoed, with or W,ithOUt 1:ausc% the vote of Members holding a majority of such votes, Any director whose removal is sought shall be given notice prior to any meeting called for that purpose, Upon removal of a director by, Nelem bers„ a successor shall be 'elected to till the vacancy for the remainder of the term of such director. Any director elected by the Members who has three consecutive unexcused -absences from Board meetings may be rernoved by a majority of the directors present at a regular or special meeting at which a quorum is present., and the Board may appoint a successor to fill the vaeano for the remainder of the term. In the event of the death., disability. or resignation of a director elected by the Members. the Board may declare a vacancy and appoint a successor to fill the vacancy until the next election of directors by the Members. at which time thc Members may elect a successor for the remainder of the term. Declarant. in its capacity as suchshall have no right unilaterally to remove or replace directors elected by the Members (hut. except as provided above. may cast any votes it holds for or against the removal of directors), and neither the Members nor the Board shall have any right to remove or replace directors appointed by;Declarant. Declarant shall be entitled to appoint a successor to fill any vacancy on the Board resulting from the death. disability or resignation of a director appointed by Declarant. rs B. Meetings. 3.6. grIani4a *onalivieetirlor. The first meeting of the Board shall be held immediately,' fcfllovving each annual meeting of the membership. 3.7. Re', Regular meetings directors shall determine, at least one per quarter. of the Board may be held at such 'tme and place as a majority of the hut at least full!" SUCh meetings, shall he held during each fiscal year with ' Special meetings of the Board shall be held when called by written notice signed by the President or Vice President or by 201)4) of the directors then in office. 3.9. N Cee: IN( tice. (at Notices of Board nacetir4.?.,s shall specify the time and place of the meeting and. in the case of a special meeting. the nature °laity special business to be considered. The notice shall be given to each director by: (i) personal delivery: (ii) first class mail, postage prepaid: (i6) tele- phone communication.. either directly to the director or to a person at the director's office or home B31614 - P571 who would reasonably be expected to communicatesuch notr ice promptly ro pat todhle director; ire vior;printed facsimile, computer, or other electronic mail. messaging confirmation of successful transmission. All such notices orshall ailmggiven or phys cal address asdirector's sh wn telephone number. fax number, electronic mail add on the records of the Association. Notices sent by first time se t mail thall be meedeposited into gi tinted by States mailbox at least five business days before the personal delivery, telephone, or electronic communication shall be delivered or transmitted at least 48 hours before the time set for the meeting. c municate the ate, e. d place of (b) To the extent practical, the Board shall a�mommun ty newsVetter`mon a communityregularly scheduled Board meetings by publication website, or by electronic mail or other means reasonably designed to make such information avail- able to the Members. noticed (c) Transactions of any Board meeting• however afterregular called calV and notice F(i} awherever quorum shall be as valid as though taken at a meeting g duly held is present, and (ii) either before or after themeeting a each al of the minutes. director t signs The waiveren waiver of notice of notice. a consent to holding the meeting, or anpp or consent need not specify the purpose of the meeting. iceof a before meiing atlstos oailllibe deemed e m d t given to any director who attends the meeting withoutprotesting about the lack of adequate notice. 3.10. Tele honic Partici ation in Meetings: Remote Meetings. (a) Members of the Board or any committee that the Board appoints may participate in a meeting of the Board or committee by conference telephone. video conference. or meeting g can hear each others rn- munications equipment. provided all persons participating in the ultaneously. (b) A meeting of the Board. or any committee designated by the Board. may be held ng by means of a "virtual" or remote electronic communications person entitled to participatean the meeting coil eing �nts technology or the Internet, but only if (i) each to the meeting being held by means of that system; an with ii) the e osterfl rermits her pant each person partic- ipating in the meeting to communicate concurrently (c) Participation in a meeting pursuant to this section shall constitute presence in per- son at such meeting. 3.11. uorum of Board: Voting. At all Board meetings, a majority of the directors shall constitute a quorum for the trans- action of business, and the votes of a majority of the directors otherwiseerwresent at a meeting at which a se specifically provided quorum is present shall constitute the decision of the Boardunless in these By -Laws or the Declaration or by North Carolina law. A meeting at which a quorum is initially present may continue to transact business. not- rity withstanding the departure of some directors, n any Board action meeting caiupotroved be hebd because ay at least a mquorum of the required quorum for that meeting. it 9 is nett present, a ma tinge not less than s meeting. it'a quoru finally called may be B3 614 - P572 he directors present r me re than 30 day s from the date of the or is present, any business that raaihave been transacted at the meetin transacted without further n Board members may n written consents without a mee ( vote by pro tags in accordanc Voting ma with Sectio b 4, eetir1 or ¢ Conduct ct_t�rrt. The President shall preside over all met: -ten gs of the Boa rt9 and he Secretary shall ensure that minutes are recorded in a minute book and that a record is taaa e of all Board resolutions and all transactions and proceedings occurring at such meetings. 3.13. S dal , lc ast once per calertclar retorter tlae Board shall provide '1ct l t is an upportu City to attend a portion of a Board meeting and speak to the Board about vth i may issuesr end ooncelns, The Board may place reasonable restrictions on the_ number of persons P e of an issue and reasonable time restriethe persons who speak. nhi) In any Board meeting. upon mot may adjourn and reconvene in executive session, r persons as the Board may speci[rcaliy invite. to disc ins or threatened litigation personnel t at'ters. and such profit Corporation Act may specifically authorize. 3,14 Any aetiota to he taken at a at. ctiota that may r.e rtaeeting o'fthe directors may he taken vvithe ut a meeting, if all oftlae directors sign a writ or consents setting Portia the action so taken. Such consentsame Cora as a unanimous vote at a meetin,t. Consents may be filed electronically in accordance v ?1?, and icti Board. the Board nee to directors and such other sensitive: nature. such as pend- ers as the North Carolina Non- c. rid Duties. The Board shall have all of the powers and dut ions affairs and for performing all. responsibilities atictrr as set forth in the Governing Documents, and as pr cause to be done on behalf ofthe Association all acts and thin Documents or North Carolina law require to be done and etcereise Boa d d l ations as to the meaning, scope, an appticata.� taken at a consent and effect tia Section the adnaintstrtttttrn tbt u2e all rights of the Associ- aw. The Board may` d cept those which the Gov usively by the the of Governing Document pro r e ermrn shall be upheld and enforced so long as such determinations are reasonable. B31614 - P573 3.16. Duties. Duties of the Board shall include, without limitation: (a) preparing and adopting. in accordance with the Declaration, an annual budget es- tablishing each Owner's share of the CommonExpenses (b) levying and collecting such assessments from the Owners; and (c)providing for the operation, care, upkeep. and mainteaforeof H the Common To re and the Units consistent Governing Documents and the maintenance standards established Town - homes I pursuant to (d) designating, hiring, and dismissing personnel necessary to carry out the Associa- tion's rights and responsibilities and where appriand materials to be used by such personnel in per- sonnel and for the purchase of equipment, supplies, the performance of their duties; and (e) opening bank accounts on the Association's behalf and designating the authorized signatories; in a (f) depositing all funds received on behalf thleeAsso�i itionn provided, a�yprese(rr•e ry which it shall approve, and using such funds tooperate funds may be deposited, in the Board's best judgment, in depositories other than banks: and (g) making and amending Rules in accordance with the Declaration: and (h) making or contracting for the making of repairs,_additions, and improvements to or alterations of the Common Area in accordance with the Declaration and these By -Laws; and (i) determining when action to enforce the Governing Documents is appropriate and Q Q proceedings which may be instituted the nature of any sanctions to be imposed, and bringing any liea- on behalf of or against the Owners concerning mannere sshowever, 7h5O of thete tDeclaration; tion in this regard shall be conditioned in theprovided in Section and 0} obtaining and carryingeo property hereof,and and filing and adjusting cl�irnsyaselitoappropriate; pro- vided in the Declaration, paying th and (k) paying the cost of all services rendered to the Association; and {l) keeping books with detailed accounts of the Association's receipts and expendi- tures; and B31614 - P574 (svty making a ers, insurers, and guarantors o mems and all other books. record Section 9.4: and permitting Utikty till e ongoing development or o as set for indemnify .member of the Association to th Articles and these By -Laws: assisting in the resolution of disputes between owners and others without in the Declaration; and date on an and financ atements f a limt. ent copies oft if the Association as pr reasonably neces and Officers director. pots rtiol'1 C?t th (. onirnon S�cc Iliahland Park Tow nhomes I: ar committee member. or torn exte¢tt such indemnity is rer der C'o tltarini7 Aireesnent.. director, officer rd by North Caro- 4.1. tticers. oofficers tsrlrer. Officers ��f'the. Assoc�ati��n shalt/ he aPresident.. '�'i�`c President, the Board members: Secretary. her and hie c�r� may. President and Secretary shall he elected from among but need not he, Board members, The Board may appoint such other officers. including one or more Assistant Secretaries and one or inure Assistant Creasu rs as itshall ms � sil ableOerso. sucetch eftirers to have such authority and perform such duties as theprescribes. t,.t r� G, ar ra°tore ol`l"tc:cs_ except that the offices of President and Secretary shall he held by dif er- ent persons. na o The Board shall elect the Association's o1'ficergs tit the first 1 annual meeting of the Members. to serve until their successors are el give or publish notice to the Members of the names and addresses of after' any election of directors or any changer in officers of the Associta ident or at 4.?. (a) Any officer may resign at any time by 6iv"rl'ag she Secretary. Such resignation shall take effect on the later time specified therein, and unless otherwise spec shall not be necessary to make it effective, fb ac The Board may will be served. The Board may fill an whenever in any office aris the unexpired portion of the term. I2 g ea elation shall itt 30 days notice to the. Board. the Pres- pt ofsuch notice ed. therein, acceptance of such ent the best interes B31614 - P575 4.4. Powers and Duties. ies as generally pertain to The Association's officers shall each have such owers and as the Boardtmay specificallye onfer or their respective offices, as well as such powers and duties impose. The President shall be the chief executive o icer of andthe Association. sand foraauth shall be responsible for preparation of minutes of the directors' for on ticating records of the Association. The Treasurer �a may dc! l have primary ali or part of thevpreparation and of the budget as provided for in the Declaration notification duties to a finance committee. management agent, or both. Article V Committees 5.1. General. opriatto The Board may appoint such other committees esigdesignate by resodeems rfu ione Eachrcommittee form such tasks and to serve for such periods as the Board may shall operate in accordance with the terms of such resolution. 5.2. Covenants Committee. ish pursuant to Section 5.1. In addition to any other committees that the Board may fat leasbtithree and no more than five the Board may appoint a Covenants Committee cons Members who are neither officers nor directors Acting in accordanee with f the Association. nr the pthesprovis provisions sotsthe or child of any officer, director or employeCovenants Declaration. these By -Laws. and resolutions the Assocdiati may adopt, all conduct all hearings el�eld established. shall be the hearing tribunal of th pursuant to Article VIII of these By -Laws. The Covenants Committee shall have no responsibility for seeking out violations of the Governing Documents. Article VI Standards of Conduct; Liability and Indemnification 6.1. Standards for Directors and Officers: The Board shall exercise its powers in n a reasonable. ea on Governing Documents. fair. nondiscriminatory manner and shall adhere to the procedures established In performing their duties, directors and officers shall act as fiduciaries and shall be insu- er state law ro- lated from liability as provided for dlDctors of corporations rectors and officers shaldl discharge the rddutizas ts herwas dire ise co s vided by the Governing Documents. or officers, and as members of any committee to be in,ch they are ornot opposedto.the^ best goodninterest ofs the manner that the director or officer believes corporation, and with the care that an ordinarily prudent person in a like position exercise under similar circumstances. A director is entitled to rely on information, op' p statements, including financial statements and otherNona vialft data. to prepared Act. or presented by others to the extent authorized under the North Carolinap 13 B31614 - P576 6.?. The any mistake of jud kept for their own s shall have no perso taken in good faith on beha may also be Members of the Assoc 6.3. 1nde in and cttraimittce members tsf the A„ociation s gent orh �r for action taken or tt�r e Subject. to the limitations of`f"leer. director. and committee me and expenses, reasonably incurred settlement of any suit or proceeding.. having o obligation to th a proceeding: ted in such ca it �eRy rsc. �_ i {tit f rr a vet ntrrn misconduct or bad faith. The officers and `u he a party by reason of being o that the Association shall have penses incurred in connection NAbrought by or vidual ibr reasonable expenses the court or in the manner provi under the North Carolina Nonp kb) of the Asso to the exte intend 0 pect to any contract or other commitment made veep{ tc the extent that such officers Carolina law. the Association shall inden eainst all damages and expenses. including counsel action with any action suit. or other proiCeeding tiaacltid if approved by the then Board) to which he or she I been an officer. director, or committee member. except nnify any individual against liability gar �w- although it may r ection with the proceeding if it I ed above, that the individual met the relevant stall iration Act: or he inc' al an unlaaw'tt ributi A d cd ilahle for conduct that co r knOW at101 fiy receipt of an improper personal henettt `1"his rifeht tto indcmnil icati0n shall not he exclusive of any othe or office'{'. director, or cornmittcc memher may be emitted. Common Expense, maintain adequate general liability and oft cars' ance to fund this obligation, if" such insurance fs reaasonahly iv aiiable. 6.4. Advancement t •LXpenseS. business officers: or lta acca rdance with the procedures and subject to the co and li the iv+car'th Carolina Nonprofit Corporation. Act. the Board vitas uthorid e ale A present c}rtfc� rto ad- vance fttnds to pay for or reimburse the reasonable expenses fiver, director or committee member in toror proceedingcommitoe hichmeck he or th e emaAsb tatparty� by reason of being or haying been an officer, dirt{: h any present shall. as a 14 B31614 - P577 6.5. Board and Officer Training. ntinuing The Board may, as a Common Expense, conduct mforin �s officers and directors of thr provide for seminars and eir respon- sibilities opportunities designed to educate and apply as officers and directors. The Board may irectors�[n the Commur and nity Associations Institute membership for the Association, its officers or any similar nonprofit organization that providand managems educational ent of ciommun'oty associat ons. asso- ciation directors, officers and managers in operation 6.6. Conflicts of Interest. Unless otherwise approved by a majority of the oe�dring his'or herdirector term as directoror transact business with the Association or any Association contractore Board within two years after the term expires. A director shall lspromptly th diysclose toorhdo'tnQ buany rela- tionship that the director may have, financial or o proposing to do business with the Association andany actual ctr potential conflict of interest af- fecting the director relative to his or her performance as a direments in the rm of Except as provided in Section 7.1. no financialor.or Po an Qnts or businessybusiness assoociate. or rela- tive or services shall be made to any officer or direct y of an officer or director, unless approved b oar majority who a bu f ne7e ss�busincss associrectors. iate or relatived�s r to whom such payment is proposed to be m proposed to receive such payment. y Nothing herein shall preclude directors o h°siaffi tedlaty e olarant from being emloyed r preclude Declaranpfram trans- acting otherwise transacting business with Declara business with the Association or its contractors. notwithstanding the fact that the Board may include directors appointed by Declarant. Article VII Management and Accounting 7.1. Com ensation of Directors and Officers. ion from the ation r acting Directors and officers shall not receive esent"nany g a major tytofthe total votes�nithe As�oc anon as such unless approved by Members repr at a regular or special meeting of the Association rffide during behe re Development bursed for expenseseincurred the written consent of Declarant. Any dire on behalf of the Association upon approvalmajority or a a for orhe otheofticerr orrectors. Nothiany entity with hereina shall prohibit the Association from compensating a ity director or officer is affiliated, for services or asupplies contractfurnished or agreement withothe ciatAssoci t oi� proY other than as a director or officer pursuant vided that such director's or officer's interest wasmade ma oknown t °of the Board, excluding puding anyrior to ti interested such contract and such contract was approved by Y director. B31614 - P578 72_ J2tsPlS During the Development and Sale Period. Declarant shall have a right to disapprove any action, policy. or program of the Association, the Board, and any committee which, in the sole judgment of Declarant, would tend to impair rights of Declarant under the Declaration or these By -Laws, or interfere vvith development or construction of any portion of Highland Park Town - homes 1. or diminish the level of services being provided by the Association. The Board shall not implement any action, policy, or program subject to the right of disapproval set forth herein unless and until the requirements of this. Section have been met. ia) Notice, Declarant shall be given written notice all meetings and proposed actions approved at meetings (or by written consent in lieu of a meeting) of the Association. the Board or any committee. Such notice shall be given by certified mail. return receipt requested, or by pr- sonal delivery at the address it has registered with the Secretary of the Association, which notice complies as to Board meetings with Section 3,9, and which notice shall. except in the case of the regular meetings held pursuant to the By -Laws, set forth with reasonable particularity the agenda to he followed at such meeting., ' F Declarant shall be given the opportunity at any such meeting to join in or to have its representatives or agents join in discussion from the Boor of any prospective action. policyor program which ‘vould be subject to the right of disapproval set forth herein. Declarant or its representatives or agents shall make their concerns.. thoughts, and sugges- tions known to the Board and/or the members of the subject committee, Declarant, acting through an officer or director, agent or authorized representative, may exercise its right to disapprove at any time within 1,0 days following the meeting at which such action was proposed or. in the case of any action taken by written consent in lieu of a meeting, at any time within 10 days following receipt of mitten notice of the proposed action. This right to disapprove may be used to block proposed actions but shall not include a right to require any action or counteraction on behalf of any committee, the Board, or the Association, Declarant shall not use its right to disapprove to reduce the level of services which the Association is obligated to provide or to prevent capital repairs or any expenditure or other action required to comply with applicable laws and regulations. M anagino A 7.3, The Board may employ for the Association a professional management agent or agents at such compensation as the Board may establish. to perform such duties and services as the Board shall authorie, The Board may delegate such powers as are necessary to perform the managers assigned duties. but shall not delegate policy -making authority or ultimate responsibility' for those duties set .forth in Section 3.16. Declarant or its .affiliate may be employed as managing agent or manager. The Board may delegate to one of its members the authority to act on the Board's behalf on all matters relating, to the duties of the managing agent or manager, if any. which might .arise between Board meetings, 16 B31614 - P579 ent con - No remuneration shall be accepted by the managing to the Association. from whether �otheiforrn oFdcommis- tractors, or others providing goods or servicesived lions, Finder's fees. service fees. prizes. gifts. or otherwise;received ha esin hafabenefit the Association. Any financial or other interest that the managing agent may providing goods or services to the Association shall be disclosed promptly to the Board. 7.4. Accounts and Re orts. (a) The following accounting standards shall be followed unless tion specifically determines otherwise: (i) cash or accrual accounting, as defined by generally principles. shall be employed; and (ii) accounting and controls should conform to generally cash accounts of the Association shall not be commingled with any other principles; and (iii) the Board by resolu- accepted accounting accepted accounting accounts. (b) Commencing at the end of the quarter ant lt whichqthe Firsrlyto Unit is sold and closed_ financial reports shall be prepared for the Assoc iation (i) an income statement reflecting all income and expense activity for the pre- ceding period on an accrual basis; and (ii) a statement reflecting all cash receipts and disbursements for the preceding (iii) a variance report reflecting the status of all accounts in an "actual" versus "approved" budget format; and (iv) a balance sheet as of the last day of the preceding period: and (v) a delinquency report listing all Owners who are delinquent in paying any assessments at the time of the report and describing the status of any act hall be on to collect consuch aassess- ments which remain delinquent (any assessment or installment be delinquent on the l5th day following the due date unless otherwise specified by Board resolution). (c) An annual report consisting of at least the following shall be made available to ail Members within 75 days after the close of fiscalthe n financial position fiscal ye (ii) an per5uch (income) statement; and (iii) a statement of changes annual report shall be prepared on an audited, Vde' orcompiled basis. h deter- mines. by an independent public accountant; prD'a upon a voteof the majority of the Board. n r or upon the affirmative vote of a majon}eea�bhOwners calledpresent for that purpose. 'the Association shall y proxy at any annual meeting or any special duly provide an audited financial statement. period; and I7 B31614 - P580 7.5, Borrowing, The Association shall have the power to borrow menus for tinylegal purpose: prc,. ided. the Board shall obtain Member approval in the same manner provided in he Declaration for Spe- cial Assessments if the proposed borrowing is for the purpose of making discretionary ctipital im- provements andthe total amount of such borrowing,. together with all other debt incurred within the previous 12-month period, exceeds or would exceed the greater of .$50.000 or 20% of the Association's budgeted gross expenses for that fiscal N, ear, 7.6. Rirdit Co ra The Association shall have the right to contract with any Person for the performance of various duties and functions. 'This right shall incude, without limitation, the right to enter into common management, operational. or other agreements with trusts or other owners or residents associations, within and outside Highland Park Townhomes 1. Any common management agree- ment shall require the consent of a majority of the total number of directors on the Board. 7.7. All agreements. contracts, deeds. leases, checks. and other instruments of the Association shall be executed by at least two officers or by such other person or persons as the Board may designate hv resolution. Article Vilt , Enforcement Procedures The Association shall have the power. as provided in the Declaration. to impose sanctions for any violation of the Cioverning, Documents. To the extent specifically: required by the Decla- ration, the Board shall comply with the following procedures prior to imposon of .sanctions: Ls. Etc. eases. (Thee 8,1. Notice and Response. The Board or its delegate shall serve the alleged violator with written notice. hy certified mail. return receipt requested, (a) describing the alleged, violation or property damage: which is the basis of the proposed sanction or amount due to the Association. as 'appicable: (1)).describing the proposed sanction to be imposed, and tei informing thc alleged violator that he or she has 21 days after receipt of the notice to present a written request for a hearing to the Board or the Covenants Committee, if: one has been appointed pursuant to Article 5: and (d) if the alleged violator fails to respond to the notice within the 21-day period. the Board may impose the proposed sanction. If the hearing is to be held before a Covenants Committee, the notice shall also state that the alleged violator has the right to appeal the decision of the Covenants Committee to the Board. if the alleged violator cures the alleged violation and notifies the Board in writing within such 21-day period the Board may, but shall not be obligated to. waive the sanction. Such waiver shall not constitute a waiver of the right to sanction future violations of the same or other provisions and rules by any Person. Prior to the effectiveness, of sanctions imposed pursuant to this Article. proof of proper notice shall be placed in the minutes of the Board or Covenants Committee. as applicable, Such 18 B31614 - P581 proof shall be deemed adequate if a copy of the notice, or o'ogether with a statement agent who delivered such thef date and The manner of delivery. is entered by the officer. . director. notice requirement shall be deemed satisfied if the alleged violator or its representative requests and appears at the hearing. 8.2. Hearing. if a hearing is requested within the allotted 21-day period, the hearing shall be held before the Covenants Committee, or if one has not been appointed, then before the Board in executive session within 30 days after receipt of the alleged violator's request. Either the Board or the alle�v,ed violator may request a postponement of up to 10 clays and such postponement shall be granted. Additional postponements may be granted upon agreement ofboth Ascia ithe heaon and ding he lof the violator. The Board shall notify the alleged violator at leas daysprior time, date, and place of the hearing. At the hearing. the alleged violator shall be afforded a rea- sonable opportunity to be heard and shall be entitled to make an audio recording of the hearing. The minutes of the meetings of the Board or Covenants Committee. as applicable. shall contain a written statement of the results of the hearing (i.e., the Board's or Committee's decision) and the sanction. if any. to be imposed. Written notice of the decision shall be mailed to the violator within three days after the hearing. 8.3. Appeal. if a hearing is held before the Covenants Committee, the violator shall have the right to appeal the decision to the Board. To exercise this right, a written notice of appeal must be received by the Association's manager, President. or Secretary within 10 days after the date of the Cove- nants Committee's decision. Article IX Miscellaneous 9.1. Fiscal Year. The Association's fiscal year shall be the calendar year unless the Board establishes a dif- ferent fiscal year by resolution. R.2. Parliamentary Rules. Except as may be modified by Board resolution. Roberts Rules of Order (current edition) shall govern the conduct of Association proceedings when not in conflict with North Carolina law or the Governing Documents. 9.3. Conflicts. If there are conflicts among the provisions of North Carolina law. the Articles of Incorpo- ration. the Declaration. and these By -Laws. the provisions of North Carolina law. the Declaration, the Articles of Incorporation, and the By -Laws (in that order) shall prevail. 19 B31614 - P582 9,4, ta) , -c of Books d Records,. 'Fite Association shall maintain the following books and records, either in written form or in a form capable of conversion into written form within a reasonable time: appropriate accounting records: minutes of all meeting.s of the klembers and the Board: a record of ail actions taken by the Members_ and the Board without a meeting: a record of all actions taken by any, committees appointed b.y the Board: a membership roster re- flecting the name and mailing address d' at meinbers: in alphabetical order by, class. .aiong with the address of each Unit owned by the Member' and the number of votes allocated to each \iem- ber's Unit(S). 'Mc Association shallat its principal office Copies of the following documents: its Articles and By-laws, and all amendments currently in effect: (ii) Board (ions relating to the ritth(s. limitations: and obligations uU Mem- Oh) the minutes °Call Membership meeting's records of all actions. approved by the Members for the three most recent years: (iv ) all written communications directed to the Mernbers ia-nerally daring th preceding three years; (v) copies of the financial statements For the three most recent years: (vi) a list of the names and business: or home addresses of its current, directors and officers; and (vii) its most recent annualreport filed with the Secretary of State, (b) 179 ks and Records„ Within 60 days after termination of the Declarant Control Period,. Declarant shalt deliver to the Associahon all property, books and records of the Association in Declarant's possession., (c) Members at Within five days after receipt oil) written request to inspect the Association's books and records the Board shall make available for inspec- tion and copying by,: any Member, any holder, insurer or guarantor of a first Mortgage on a Unit, or the duly appointed representative of any of the foregoing. at such reasonable time and location as the Board may specify. any of the books and records listed in subsection (al °I -this Section and speeilied in such written request. provided that a „Member shall only he entitled to inspect the books and records enumerated in clauses tit through (vii) of subsection if the Member's demand is made in good faith and for a proper purpose; the member describes with reasonable particularity: the purpose and the records the member desires to inspect; and the records are directly connected with this purpose. The Board shall establish rules with respect to; bers: „ee 20 B31614 - P583 (I) notice to be given to the custodian of the records; and (ii) hours and days of the week when such an inspection may be made: and (iii) payment of the cost of reproducing documents requested. (e) Ins ection b Directors. Every director shall have the absolute right at any reason- able time to inspect all Association books, records, and documents nd ine cludes des physicalthe properties o r e e owned or controlled by the Association. A directors right o a copy of relevant documents at the Association's expense. 9.5. Notices. (a) Form of Notice and Method of Deliver . Except as statements, otherwise orrotheedC n the Dtec- laration or these By -Laws or by law, all notices, demands, tions under the Declaration or these By -Laws o if the shallsntzndedwriting recip'en hasbgivdeliitsvered prior written person. by United States mail, by private carrier, authorization to use such method of delivery. by telephone facsimile or electronic mail with written confirmation of transmission. (b) Delivery Address. Notices shall be delivered or sent to the intended recipient as follows: (i) if to a Member, at the address. telephone facsimile number. or e-mail ad- dress which the Member has designated inwriting landt of fied with Membee r: (ii) or. if no such ad- dress has been designated, at the address of the (ii) if to the Association. the Board, or a committee of either, at the address. he telephone facsimile number. or e-mail address afthe rn shalltoffice of desi�natetby not�ei�nlwr ling to the man- aging agent, or at such other address as the Association Members pursuant to this Section; or (iii) if to Declarant. at the principal address of Declarant as it appears on the Secretary of State's records. or at such other address as Declarant shall designate by notice in writ- ing to the Association pursuant to this Section. (c) Effective Date. Notice sent in accordance with subsections (a) and (b) shall be deemed to have been duly given and effective: (i) if sent by United States mail, when deposited with the U.S. Postal Service. correctly addressed, with first class or higher priority postage prepaid; (ii) if delivered personally or by private carrier. when actually delivered to the address of the intended recipient. as evidenced by the signature of the person at such address who accepts such delivery; (iii) if sent by telephone facsimile or electronic mail. upon transmission. as evi- denced by a printed confirmation of transmission. 2l B31614 - P584 A mendment (a) By Board, Until termination of the Declarant Control Period, the Board 111 a> amend these By -Laws or any reason upon majority vote of the Board and the written consent of Declar ant. 'I -hereafter, the Board may unilaterally amend Otto correct clerical, typographical or technical errors; (ii,) to bring any provision into compliance comply with any applicable governmental stat- ute, rule, regulation, or judicial determination: and (h) to comply with the requirements. standards or guidelines of any institutional or governmental lender. purchaser. insurer, or guarantor of mort- gage loans: or {iv) to satisfy the requirements, of any local; state, or federal governmental agency, (b) By Members Generallv, Except as pritvided above, these By -Laws may be. amended only by the affirmative vote or written consent. or any combination thereof, of.. Members or their proxies representing, 67 of the total votes, in the Association and, during the Development and Sale Period. the written consent of Declarant, Any such amendment shall he subject to the veto right set forth in subsection (c), if applicable,. Notwithstanding the above. the percentage of votes necessary to amend a specific clause shall not be less than the prescribed percentage of af- firmative votes required for action to be taken under that clause. (c) Validity and Effective Date of Amendments: Amendments to these By -Laws shall become effective upon recordation in the office olthe Recorder of Deeds for Mecklenburg County. North Carolina, unless a later effective date is specified therein, Any procedural challenge to an. amendment must be made within six months of its recordation, or such amendment shall he pre- sumed to have been validly adopted. ln no event shah a change of conditions ur circumstances operate to amend any provisions of these By-l.„...avvs. No amendment may remove, revoke. or modify any . or priiIege of 1 the vvritten consent of Declarant, 10.0 'C A Docs.3yi H hlad Nrk' 22 1331614 - P585 CERTIFICATION I, the undersigned, do hereby certify: That l am the duly elected and acting Secretary of Highland Park Townhomes I Owners Association, Inc., a North Carolina nonprofit core That the foregoing By -Laws constitute the By -Laws of the dayAssociation. -- as duly adopted by resolution of the Board thereof on the of IN WITNESS WHEREOF, I have dayhereunto subscribed my name and affixed the seal of . said Association this of -- [SEAL] Secretary B32565 - P139 } Upon recording, please return to: CCH-Highland Mill, LLC c/o David Herrigel Hyatt & Stubblefield, PC 233 Peachtree St. NE, Ste 1200 Atlanta, GA 30303 FOR REGISTRATION Fredrick Smith REGISTER OF DEEDS Mecklenburg County NC 2018 MAR 29 12:04:21 PR BK:32565 PG:139-146 INSTRUMENTS#620018037159 EDWARDSM 1111 INDEXING NOTE TO CLERK'S OFFICE: Please index in Grantor index under "CCH-Highland Mill, LLC" Please index in Grantee index under "Highland Park Townhomes I," and "Highland Park Townhomes I Owners Association, Inc." STATE OF NORTH CAROLINA COUNTY OF MECKLENBURG FIRST AMENDMENT TO DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR HIGHLAND PARK TOWNHOMES 1 II 0 This First Amendment to Declaration of Covenants, Conditions and Restrictions for Highland Park Townhomes I ("Amendment") is made by CCH-Highland Mill, LLC, a North Carolina limited liability company ("Declarant"). Background Statement Declarant is the developer of the planned community located in Mecklenburg County, North Carolina, known as Highland Park Townhomes 1. Declarant executed and filed that certain Declaration of Covenants, Conditions, and Restrictions for Highland Park Townhomes I recorded on March 6, 2017, in Deed Book 3614, Page 505, et seq., as Instrument # 2017028474, in the Office of the Register of Deeds of Mecklenburg County, North Carolina (as it may be amended and supplemented, the "Declaration"). Pursuant to Section 19.1 of the Declaration, Declarant reserved the right to unilaterally amend the Declaration until termination of the Declarant Control Period (as defined in the 1 1 B32565 - P140 Declaration). The Declarant Control Period has not terminated and Declarant desires to amend the Declaration as set forth herein. NOW, THEREFORE, Declarant hereby declares that the Declaration shall be amended as follows: 1. Exhibit "A" to the Declaration, Legal Description of Submitted Property, is amended by deleting such Exhibit in its entirety and substituting in its place the Exhibit "A" attached hereto. As such, the property described in Exhibit "A" attached hereto, as may be amended, shall constitute "Highland Park Townhomes I," as defined in the Declaration, and any property previously described in Exhibit "A" to the Declaration, as recorded prior to this Amendment, but not included in Exhibit "A" attached hereto, shall be deemed withdrawn from the Declaration and the Declaration shall have no application to or effect upon such property. 2. Section 2.1, Location and Boundaries of Units, is amended by deleting such Section in its entirety and substituting the following therefor: 2.1. Location and Boundaries of Units. A plat of survey ("Plat") depicting the vertical (perimeter) boundaries of each Unit shall be recorded in the office of the Register of Deeds for Mecklenburg County, North Carolina, prior to conveyance of the Unit for residential occupancy. The Units shall have no horizontal (upper and Iower) boundaries. The.Unit shall include all improvements Iying within the vertical boundaries of the Unit as shown on the Plat and also shall be deemed to include any pipes, lines, cables, conduits, wires, and other equipment or facilities, including any portion of any air conditioning or heating system, exclusively serving the Unit, regardless of whether such equipment or facilities lie within the boundaries of the Unit, other Units, or the Common Area. 3. Section 3, DESCRIPTION OF COMMON AREAS AND LIMITED COMMON AREAS, is amended by deleting the first paragraph of such Section and the sub -parts (a) and (b) which follow and substituting the following therefor: 3. DESCRIPTION OF COMMON AREAS AND LIMITED COMMON AREAS. Any portion of Highland Park Townhomes 1 which is owned by the Association, and any easements granted or reserved to the Association, shall constitute "Common Area" of the Association. Generally, the Common Areas are intended for the benefit and use of the occupants of all Units; however, some 2 B32565 - P141 portions of the Common Areas are designated as "Limited Common Areas," which means they are assigned for the exclusive use of the Owner and occupants of less than all of the Units. Any mailbox which the Association's board of directors ("Board") assigns for use by the occupants of a particular Unit shall be Limited Common Area of the Unit to which it is assigned. In addition, to the extent that any portion or part of a Unit lies outside of the boundary of the Unit or otherwise encroaches upon the Common Area, the portion of the Common Area upon which such portion or part of the Unit lies or encroaches shall be assigned as Limited Common Area of such Unit. 4. Section 8.4, Easement for Joint Utilities and Equipment, is amended by deleting such Section in its entirety and substituting the following therefor: 8.4. Easements for Utilities and Equipment. Declarant hereby reserves a non-exclusive easement for the installation of, and creates and grants to the Association a non-exclusive easement for the existence of and for the maintenance, repair, replacement, and improvement or upgrade of, any utility lines, equipment, facilities, or apparatus located in or on a Unit and any replacements or upgrades thereof, which serve more than one Unit or any Unit and the Common Area ("Joint Facilities"), and for access through the Unit as necessary to perform such maintenance, repair, replacement, inspections, and testing as the Board may deem necessary or advisable from time to time. Such easement may be exercised by the Association's directors, officers, agents, employees, manager, contractors, utility providers, and by public safety officials acting in their official capacity. In addition, Declarant hereby reserves a non-exclusive easement for the installation of, and creates and grants to each Owner a non-exclusive easement for the existence of and for the maintenance, repair, replacement, and improvement or upgrade of, any utility lines, equipment, facilities, or apparatus (including any portion of any air conditioning or heating system) which exclusively serve and are a part of such Owner's Unit but are located in or on one or more other Units ("Unit Facilities"), and any replacements or upgrades thereof, and for access through such other Unit(s) as necessary to perform such maintenance, repair, replacement, inspections, and testing as reasonably necessary or advisable from time to time. Such easement may be exercised by the Owner and his or her agents, contractors, and utility providers, and by public safety officials acting in their official capacity. Except in instances involving manifest danger to public safety or property, no person shall enter upon a Unit in exercise of the easements described in this Section 8.4 except during reasonable hours and after making a reasonable effort to give notice to the Unit's Owner and the Association prior to such entry. The 3 B32565 - P142 Association or the Owner exercising the easement rights under this Section, as applicable, shall be responsible for repairing any incidental damage to the Unit resulting from access through or activities in the Unit. No Owner or any occupant of any Unit, or any contractor, agent, or invitee of the Owner or occupant, shall remove, alter, disrupt, disconnect, or otherwise interfere with the installation or operation of any Joint Facilities or Unit Facilities in any manner, or block access to the Joint Facilities or Unit Facilities or a Unit in any way without the prior written consent of the Association, which consent may be granted, denied, or made subject to reasonable conditions, in the Board's discretion. 5. Section 8.6, Easement for Municipality, is amended by deleting such Section in its entirety and substituting the following therefor: 8.6. Easements for Municipalities. Declarant grants to the City of Charlotte and Mecklenburg County a right and non-exclusive easement of access over Highland Park Townhomes I for purposes reasonably related to the proper exercise of its rights and powers, including, without limitation, reading of utility meters and enforcement of its ordinances and regulations, including such fire and safety regulations and parking regulations as may be in effect from time to time and apply to Highland Park Townhomes I. In addition, Declarant hereby grants to the City of Charlotte and Mecklenburg County a non-exclusive easement over those portions of the Units and Common Areas which are sidewalks, alleyways, driveways, or other areas designated for public access for the existence and installation of, and for the maintenance, repair, replacement, and improvement or upgrade of, utility lines, equipment, facilities, or apparatus, and any replacements or upgrades thereof, and for access as necessary to perform such maintenance, repair, replacement, inspections, and testing as may be reasonably necessary or advisable from time to time. 6. Section 8.9, Easement for Pedestrian Access, is amended by deleting such Section in its entirety and substituting the following therefor: 8.9. Easements for Pedestrian Access. Declarant hereby creates and grants to permitted users of the adjacent Highland Mill project, a non-exclusive right and easement over any exterior sidewalk or pedestrian pathway located within the Common Area or within the boundaries of a Unit and which provides access from the public street known as 4 B32565 - P143 East 33rd Street to public use areas within the Highland Mill project. The right to use any such sidewalk or other pedestrian pathway for ingress and egress to and from the Highland Mill project shall be subject to reasonable regulation and control by the Association in the same manner as pertains to the Association's control over the Common Area. In addition, Declarant hereby creates and grants a non-exclusive, public right and easement over that portion of the Common Area in which the sidewalk along the public street known as East 33'i Street is located. Subject to the rights of the City of Charlotte and Mecklenburg County with respect to such areas, the right to use any such sidewalks shall be subject to reasonable regulation and control by the Association in the same manner as pertains to the Association's control over the Common Area. The privileges afforded members of the general public under this Section 8.9 shall not be deemed to (i) grant a vested right to the general public in the use of and access to any portion of Highland Park Townhomes I; (ii) permit demonstrations, protests, or other organized gatherings within the above -described areas without the Association's specific written consent; or (iii) require any consent or approval by members of the general public to modify, restrict, or rescind such privileges. 7. Section 8.10, Facilities Open to the Public, is amended by deleting the first sentence of such Section and substituting the following therefor: 8.10. Facilities Open to the Public. Declarant reserves the right to designate a portion of the Common Area and yard space within any Unit adjacent to such Common Area as a public park for use and enjoyment of the general public subject to reasonable regulation by the Association. 8. Section 8, EASEMENTS, is amended by adding the following Section 8.12 thereto: 8.12. Driveway Easement. Vehicular access to the garage within each Unit is provided by a private drive which runs across and within the boundaries of each of the Units. Declarant grants to the Association, each Owner, the permitted users of a Unit, and their guests and invitees, non-exclusive rights and easements over such private drive (and that portion of each Unit which contains a portion of such private drive) for pedestrian and vehicular ingress and egress to and from the Units. The use of such private drive shall be subject to reasonable regulation and control by the 5 B32565 - P144 Association in the same manner as pertains to the Association's control over the Common Area. In addition, Declarant hereby creates a perpetual, nonexclusive easement for access, ingress, and egress over the above -described private drive for law enforcement, firefighting, paramedic, rescue, and other emergency vehicles, equipment, and personnel; for U.S. Postal Service delivery vehicles and personnel; and for vehicles, equipment, and personnel providing garbage collection service to Highland Park Townhomes I, provided that such easement shall not authorize any such Persons to enter Highland Park Townhomes I except while acting in their official capacities. 9. Except as amended herein, all terms, covenants, restrictions, and easements set forth in the Declaration shall remain in full force and effect. [continued on next page] 6 B32565 - P145 In witness of the foregoing, Declarant has executed the within and foregoing First Amendment to Declaration of Covenants, Conditions and Restrictions for Highland Park Townhomes I on the ZL day of Al 4 2Qi-I , 20 / Q . DECLARANT: CCH-HIGHLAN ILL, LLC, a North Car ilit ompaily By: Name: Cl if bcZl4& e • TI; L Its: C(tFp leOtrig t.fr or(rnEe. STATE OF NORTH CAROLINA ) COUNTY OF ( to i LUCloPie a V d , a Notary Public in and for ✓t i n County, North Carolina, certify that 0.lkA2168 E. i j 1.- personally came before me this day and acknowledged that s/he isc 1, orfcc.itof CCH-HIGHLAND MILL, LLC, a North Carolina limited liability company, and that by authority duly given and as the act of said limited liability company, s/he executed the foregoing instrument on behalf of said limited liability company. f v Witness my hand and official stamp or seal, this 27 day of f1cY& L , 20 i1 . My ommission Expires: 5830/Highland Park Townhomes 1 k L, I/ th, Notary Public 7 B32565 - P146 EXHIBIT "A" LEGAL DESCRIPTION OF SUBMITTED PROPERTY All of those lots, tracts, or parcels of land shown and described on that certain Final Plat at Property Known as Highland Park Townhomes at Highland Mills, Map 2, Lot 4, Winter Property, Map 1, recorded October 16, 2017, in Map Book 62, Page 16, as Instrument # 2017140048, in the Office of the Register of Deeds of Mecklenburg County, North Carolina. North Carolina Secretary of State Search Results Page 1 of 1 • Upload a PDF Filing • Order a Document Online • Add Entity to My Email Notification List • View Filings • Non -Profit Corporation Legal Name Highland Park Townhomes I Owners Association, Inc. Information Sosid: 1571057 Status: Current -Active Citizenship: Domestic Date Formed: 2/3/2017 Registered Agent: Teal, Charles E. Addresses Mailing Principal Office 3730 Glen Lake Drive, Suite 125 3730 Glen Lake Drive, Suite 125 Charlotte, NC 28208 Charlotte, NC 28208 Reg Office Reg Mailing 3730 Glen Lake Drive, Suite 125 3730 Glen Lake Drive, Suite 125 Charlotte, NC 28208 Charlotte, NC 28208 https://www.sosnc.gov/online_services/searchBusiness_Registration_Results 5/31/2018 �J 0 IVNoI03 J -1.705.' 3LSC70YI► SOHOm FAST TRACK SEWER ENGINEERING CERTIFICATION PERMITTEE: Highland Park Townhomes I Owners Association, Inc. PERMIT #: WQ0040033 PROJECT: Highland Park Townhomes ISSUE DATE: June 4, 2018 This project shall not be considered complete nor allowed to operate in accordance with Condition 7 of this permit until the Division has received this Certification and all required supporting documentation. It should be submitted in a manner that documents the Division's receipt. Send the required documentation the Regional Supervisor, Water Quality Regional Operations Section at the address at the bottom. Any wastewater flow made tributary to the wastewater collection system extension prior to completion of this Certification shall be considered a violation of the permit and shall subject the Permittee to appropriate enforcement actions. The Permittee is responsible for tracking all partial certifications up until a final certification is received, A Final Certification shall be a complete set of record drawings and. design calculations regardless of whether partials have been submitted, PERMITTEE'S CERTIFICATION I, the undersigned agent for the Permittee, hereby state that this project has been constructed pursuant to the applicable standards & requirements, the Professional Engineer below has provided applicable design/construction information to the Per ittee, and the Permittee is prepared to operate & maintain the wastewater coil ction system permitt€d herirn or potions t ereof. , )_ Printed Name, Title ENGINEERS CERTIFICATION �, 1..i' , as a s, l:> registered Professional En Ineer in the State of North Carolina, having been authorized to observe ( periodically, 0 weekly, ] full time) the construction of the project name and location as referen 'ed".bove for the above Permittee hereby state that, to the best of my abilities, due care and diligence was used in the observation of the construction such that the construction was observed to be built within substantial compliance of this permit; 15A NCAC 02T; the Division of Water Resources' (Division) Gravity Sewer Minimum Design Criteria adopted February 12, 1996, as applicable; the Division's Minimum Design Criteria for the Fast -Track Permitting of Pump Stations and Force Mains adopted June 1, 2000, as applicable; and other supporting materials, North Carolina Professional Engineer's Seal /signature & date: Final _] Partial (include description Certification Comments ua ttach if necessary): State ofNorth Cardillo,; En menial Quality Water Itesasurxs; W Mooresville Regivaal OfficeGIG East' Center .Avenue, Sin 704 663 1699 R s€>nal O,erali CS. vv�, "I il� �"1'11 'S� SV Mr. Barry F, Love N[DEQ Water Quality Section 61OEast Center Ave. Suke30l Mooresville, NC3811S Re: Highland ParkThvvnhoroes—As-Built Certification (Permit No. VVQ0040033) MESA Job No. 001-16-010/W & SS Dear Mr. Love: On behalf of our Client, CCH Highland Mill, LLC, we are submitting the Engineer's Certification for the subject Permit. All work has been completed |naccordance with the approved plans and specifications, andAs'hui|t drawings have been prepared. The original Certification is attached to this letter and the following items are being sent toyou via email: ° Digital copy of this letter. • Digital copy ofthe completed Engineer's Certification. • Digital copy ofthe As -built plans, (Note that water to serve this project is provided by Charlotte Water, however for simplicity we have shown the sewer improvements covered by the subject Permit on the Charlotte Water plan set.) * Digital copy of the HOAArtides of Incorporation, p Digital copy of the HOA Restrictive Covenants and First Amendment to the CCR's. ifyou have any questions orneed additional information, you can react) meat (7U4)334-13Z5orvia email at «vhar.ri�P he-nc.com. Best regards, Harris Engineering Wayne M,'Ra President Enclosures vsnoted VVMH/j| cc: Peter Hamkasw/wutemcls. Harris Engineering mc#C-v/4o& SC#00V9*o 5200Purk Road, Suite 2J1 Charlotte, NC 28209 ~ Phone (r0^)33*'132n Fax (rV*)33+123O Resources rutaloty Asbuilt check list (reference 2T .0300) Reviewed By: Barry Love Review Date: 05/28/2019 Project Name: Highland Park Townhomes WQ#: WQ0040033 County: Mecklenburg 1) As -built has been signed, sealed, and dated by an. N.C. PE Yes — No ROY COOPER MICHAEL S. REGAN LINDA CULPEPPER llirector 2) Adequate information related to sewer lines : Note that per the 2T and MDC, there is a minimum 8" for public gravity or minimum 6" for private gravity, Three (3) feet minimum cover shall be provided for all sewers unless ferrous material pipe is specified. Manholes shall be installed: at the end of each line, at all changes in grade, size, or alignment, at all intersections, and at distances not greater than 425 feet, minimum diameter of manholes shall be 4 feet (48 inches). Yes I I No [ I N/A 3) Adequate information related to pump stations: Ensure power reliability option is selected (15A NCAC 02T.0305(h)). I Yes Is Project design in accordance with (see section B.13 of FTA 12-12) 15A NCAC 02T Gravity Sewer Minimum Design. Criteria (latest version), Minimum. Design. Criteria for Permitting of Pump Stations and Force Mains (latest version). Yes No I I N/A If no, a variance approval is required per the requirements of 15A NCAC 02T.0105(b) Applicant must submit TWO copies of the plans, specifications, and calculations Contact the Central Office to discuss the variance request to determine a course of action. The central office will review the variance request, and if approvable, specific language regarding the variance will be forwarded to the Regional Office reviewer to incorporate into the peiitiit. A copy of the variance letter (or email correspondence) should be kept with the application file. Project contains high priority lines (15A NCAC 02T .0402(2)) I Yes If Yes, insure that the peiuiit contains the necessary condition related to high priority lines 15A NCAC 02T.0403 (a)(5) 6) Is the Sewer As -built length within 10% of the fast track applied Length? (I Original length of pipe — As built length / Original length) < 10%. X Yes If no application needs to be modified. Slate or North Carolina E: N1uoresvrlle Regional Office 16 Pa Resources Region' I 699