WQ0044282_Owner (Name Change)_20240123

'
RECEIVED
State of North Carolina
DWR Department of Environmental Quality
3 2024 Division of Water Resources
JAN 2 SEWER SYSTEM PERMIT OWNERSHIP/NAME CHANGE
Division of Water Resources RINPDES INSTRUCTIONS FOR FORM: PNOCF 01-16
NCOPOiD
This form is for ownership changes or name changes of a sewer system permit. Please note that"Permtttee" references the
existing permit holder,and that"Applicant" references the entity applying for the ownership/name change.
Sewer permits start with a WQ or WQCS and contain the terms sewer extension or collection system in the subject field. This
form should not be used for permits with NC,NCG,SW or other types of non-sewer permits beginning with WQ.
For more information, visit the Division's Water Quality Permitting's website:
A. Sewer System Permit Ownership/Name Change(FORM: PNOCF 01-16)Application(All Applications):
El Submit an original completed and appropriately executed application(PNOCF 01-16).
El The Existing Permittee's Certification shall be signed in accordance with 15A NCAC 02T .0106(b). Per 15A NCAC 02T
.0106(c), an alternate person may be designated as the signing official if a delegation letter is provided from a person who
meets the criteria in 15A NCAC 02T.0106(b).
® The Applicant's Certification shall be signed in accordance with 15A NCAC 02T .0106(b). Per 15A NCAC 02T.0106(c),an
alternate person may be designated as the signing official if a delegation letter is provided from a person who meets the criteria
in 15A NCAC 02T.0106(b).
B. Existing Permit(All Applications):
El Submit a copy of the most recently issued permit and certification.
C. Property Ownership Documentation(All Applications):
> The Applicant shall demonstrate they are the owner of all property containing the sewer system facilities:
® Legal documentation of ownership(i.e.,GIS,deed,article of incorporation,or contract),or
❑ Written notarized intent to purchase agreement signed by both parties with a plat or survey map,or
❑ Approved board minutes
D. Certificate of Public Convenience and Necessity(All Applications where the Applicant is a Privately-Owned Public Utility):
O Per 15A NCAC 02T .0115(a)(I), provide one copy of the Certificate of Public Convenience and Necessity from the North
Carolina Utilities Commission demonstrating the Applicant is authorized to hold the utility franchise for the area to be served
by the non-discharge system.
E. Operational Agreements(Applications where the Applicant is a Home/Property Owners'Association or Developer of lots to be
sold):
➢ Home/Property Owners'Associations
❑ Per 15A NCAC 02T.0115(c),submit an original properly executed Operational Agreement(FORM:HOA).
❑ Per 15A NCAC 02T .0115(c), submit an original proposed or approved Articles of Incorporation, Declarations and By-
laws that contain the language required by the Operational Agreement.
> Developers of lots to be sold
O Per 15A NCAC 02T.0115(b),submit an original of the properly executed Operational Agreement(FORM: DEV).
F. Package Submitted in Duplicate
® Submit a copy of all required documents in Instructions A-E as required
THE COMPLETED APPLICATION AND SUPPORTING DOCUMENTATION SHALL BE SUBMITTED IN DUPLICATE
TO:
NCDEQ-DWR
Water Quality Permitting Section
PERCS Unit
By U.S.Postal Service: By Courier/Special Delivery:
1617 MAIL SERVICE CENTER 512 N.SALISBURY ST.
RALEIGH,NORTH CAROLINA 27699-1636 SUITE 925
RALEIGH,NORTH CAROLINA 27604
TELEPHONE NUMBER: [phone]
INSTRUCTIONS FOR APPLICATION PNOCF 01-16 Page 1 of 1

State of North Carolina
Department of Environmental Quality
DWR Division of Water Resources
SEWER SYSTEM PERMIT OWNERSHIP/NAME CHANGE
INSTRUCTIONS FOR FORM: PNOCF 01-16
Division of Water Resources
I. EXISTING PERMITTEE INFORMATION:
1. Permittee's name:216 Freeland Ln LLC
2. Signature authority's name: Eric Lemieux per 15A NCAC 02T.0106(b)
3. Signature authority's title: Manager
4. Permittee's mailing address:329 East Blvd
City:Charlotte State:NC Zip:28203-
5. Permittee's contact information: Phone number:[phone] Fax Number(_)
Email Address:[e-mail]
II. APPLICANT INFORMATION:
1. Applicant's name:Freeland Townhome Owners'Association,Inc
RECEIVED
2. Signature authority's name:Daniel Parrott per 15A NCAC 02T.0106(b) JAN 2 3 2024
3. Signature authority's title: Director NCDEQ/DWR/NPDES
4. Applicant's mailing address: 1900 Moorehead Suite 102
City:Charlotte State:NC Zip:28208-
5. Applicant's contact information: Phone number:[phone] Fax Number( )
Email Address:[e-mail]
6. Representative's name: Daniel Parrott
7. Representative's title: Director
8. Representative's contact information Phone number: [phone] Fax Number( )_-
Email Address: danielparrotuecopperbuilders.com
III. PERMIT INFORMATION:
I. Existing permit number:W00044282 and most recent issuance date: October 11,2023
2. Reason for the permit application: Change of Ownership If other, attach detailed explanation
3. Has the facility been constructed? ®Yes or 0 No
4. Has the facility been certified per 15A NCAC 02T.0116? ®Yes or 0 No
FORM:PNOCF 01-16 Page 1 of 2

• . . r
IV. CERTIFICATIONS:
Existing Permittee's Certification per 15A NCAC 02T.0106(b):
I,Eric Lemieux,Manager attest that this application
(Signature Authority's name&title from Application Item I.2&3)
has been reviewed by me and is accurate and complete to the best of my knowledge. 1 understand that prior to reissuance of the permit
into the Applicant's name, I will continue to be responsible for compliance with the current permit and any discharge of wastewater
from this system to surface waters or the land may result in an enforcement action that may include civil penalties, injunctive relief,
and/or criminal prosecution. I will also make no claim against the Division of Water Resources should a condition of the existing permit
be violated. I also understand that if all required parts of this application are note completed and that if all required supporting
information and attachments are not included,this application will be returned to me as incomplete.
NOTE — In 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$10,000 as well as civil penalties up to$25,000 per violation.
Signature: j�rti Date: I / /.S7 2`T
Applicant's Certification per 15A NCAC 02T.0106(b):
I,Daniel Parrott,Director attest that this application
(Signature Authority's name&title from Application Item II.2&3.)
has been reviewed by me and is accurate and complete to the best of my knowledge. I understand that after issuance of the permit into
the Applicant's name, I will be responsible for compliance with the issued permit and any discharge of wastewater from this non-
discharge system to surface waters or the land may result in an enforcement action that may include civil penalties, injunctive relief,
and/or criminal prosecution. I 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 information
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 143-215.6B, 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$10,000 as well as civil penalties up to er violation.
I —�- -- Date: ( I 'f 2o2`(
Signature: /
FORM:PNOCF 01-16 Page 2 of 2

STATE OF NORTH CAROLINA
COUNTY OF Mecklenburg Permit No. W00044282
DEVELOPER'S OPERATIONAL AGREEMENT
This AGREEMENT made pursuant to G.S. 143-215.1 (di)and entered into this 18th day of
January , by and between the North Carolina Environmental Management
Commission, an agency of the State of North Carolina,hereinafter known as the COMMISSION; and
Copper Builders LLC ,a corporation/general partnership registered/licensed to do
business in the State of North Carolina,hereinafter known as the DEVELOPER.
WITNESSETH:
1. The DEVELOPER is the owner of the certain lands lying in Mecklenburg County, upon
which it is erecting and will erect dwelling units and other improvements, said development to be known
as Freeland Townhomes (hereinafter the Development).
2. The DEVELOPER desires, to construct a wastewater collection system with pumps, wastewater treatment
works, and/or disposal facilities(hereinafter Disposal System)to provide sanitary sewage disposal to serve
the Development on said lands.
3. The DEVELOPER has applied to the COMMISSION for the issuance of a permit pursuant to G.S. 143-
215.1 to construct,maintain,and operate the Disposal System.
4. The DEVELOPER has created or shall create unit ownership in said 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 DEVELOPER has caused to be formed or will cause to be formed at the time of filing of the
Declaration, Freeland Townhome Owners'Association,Inc (hereinafter
Association),a non-profit corporation organized and existing under and by the virtue of the laws of the State
of North Carolina, for the purpose, among others, of handling the property, affairs and business of the
Development; of operating, maintaining, re-constructing and repairing the common elements of the lands
and improvements subject to unit ownership, including the Disposal System; and of collecting dues and
assessments to provide funds for such operation, maintenance, re-construction and repair.
6. 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 and the benefits to be derived by each of the parties
hereto,the COMMISSION and DEVELOPER do hereby mutually agree as follows:
1. The DEVELOPER shall construct 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 DEVELOPER shall not transfer ownership and/or control of the Disposal System to the Association
until construction has been completed in accordance with the permit and approved plans, and the staff of
the Division of Water Resources has inspected and approved of the facilities. In order to change the name
of the permit holder, the DEVELOPER must request that the permit be reissued to the Association. The
request must include a copy of the Association Bylaws and Declaration.
3. The DEVELOPER 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 DEVELOPER's
successor.
FORM: DEV 03-19 Page 1 of 2

4. The DEVELOPER 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.
5. The DEVELOPER 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 funds allocated for the facility and shall be part
of the yearly budget.
6. In the event the common expense allocation and separate fund 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 provide that such special assessments can be made as necessary at any
time.
7. If 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 DEVELOPER 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 mayrequire as condition of accepting the Development's wastewater.
8. 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 DEVELOPER 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 apermit.
9. The agreements set forth in numbered paragraphs 1, 2, 3,4, 5, 6, 7, and 8 above shall be conditions of any
permit issued by the COMMISSION to the DEVELOPER for the construction, maintenance, repair and
operation of the Disposal System.
10. 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 Copper Builders LLC
MANAGEMENT COMMISSION Name of DEVELOPER
S. Daniel Smith (Signature)
Director, Division of Water Resources
Daniel Parrott,President
Print Name and Title
1/18/2024
(Date) (Date)
FORM: DEV 03-19 Page 2 of 2

B38510 - P 914
For Registration
Fredrick Smith
Register of Deeds
Mecklenburg County, NC
Electronically Recorded
2023 Nov 30 04:28 PM RE Excise Tax: $ 5373.00
Book: 38510 Page: 914 - 915 Fee: $ 26.00
Instrument Number: 2023112693
NORTH CAROLINA SPECIAL WARRANTY DEED
Excise Tax: $5,373.00
Parcel ID: 149-012-73, 149-012-72, 149-012-71, 149-012-70, 149-012-69, 149-012-68, 149-012-67, 149-012-66,
149-012-65, 149-012-64, 149-012-63, 149-012-62, 149-012-61, 149-012-60, 149-012-59,and 149-012-58
Mail/Box to: Copper Builders,LLC.a North Carolina limited liability company, 1235-E East Blvd.#155,Charlotte,NC
28203
Prepared by: The Coley Law Firm,PLLC,9735 Caldwell Commons Circle,Suite 102,Cornelius,NC 28031
Title Insurance with: Investors Title
[Brief description LOTS 1-15,Private Open Space,Common Area,Landscape Buffer&Public R/W,FREELAND TOWNES AT
for the index: I LOSO
THIS SPECIAL WARRANTY DEED("Deed")is made on the 30th day of November ,20 23 ,by and between:
GRANTOR GRANTEE
216 Freeland Ln LLC,a North Carolina limited liability company Copper Builders,LLC,a North Carolina limited liability
620 E.Tremont company
Charlotte,NC 28203 1235-E East Blvd.#155
Charlotte,NC 28203
Grantor and Grantee includes the above parties and their respective heirs, successors, and assigns, whether singular, plural,
masculine,feminine or neuter, as required by enntext.
FOR VALUABLE CONSIDERATION paid by Grantee,the receipt and legal sufficiency of which is acknowledged, Grantor by this
Deed does hereby grant, bargain, sell and convey to Grantee, in fee simple,all that certain lot,parcel of land or condominium unit in
the City of Charlotte,Mecklenburg County,North Carolina and more particularly described as follows(the"Property"):
BEING that entire 0.725 acre tract of land consisting of LOTS 1-15,Private Open Space,Common Area,Landscape Buffer&Public
R/W,of FREELAND TOWNES AT LOSO,City of Charlotte,County of Mecklenburg,North Carolina,according to the recorded plat
thereof,as recorded in Map Book 73,Page 85,a revision of Map Book 72,Page 278 Mecklenburg County Records.
Commonly known as 206,210,214,218,222,226,230,234,238,242,246,&250 Freeland Lane,3849,3845,3841,3837,3833
Ellenwood Place,Charlotte,NC 28217
All or a portion of the Property was acquired by Grantor by instrument recorded in Book 37995 Pages 777,780.&783.
NC Bar Association Real Property Section Form No.3 m Revised 02/2021
Printed by Agreement with the NC Bar Association
submitted electronically by "The Coley Law Firm, PLLC"
in compliance with North Carolina statutes governing recordable documents
and the terms of the submitter agreement with the Mecklenburg County Register of Deeds.

B38510 - P 915
All or a portion of the Property El includes or 0 does not include the primary residence of a Grantor.
A map showing the Property is recorded in Map Book 73 Page 85.
TO HAVE AND TO HOLD the Property and all privileges and appurtenances thereto belonging to Grantee in fee simple. Grantor
covenants with Grantee that Grantor is seized of the Property in fee simple,Grantor has the right to convey the Property in fee simple,
Grantor has done nothing to impair such title as Grantor received,and Grantor shall warrant and defend the title against the lawful
claims of all persons claiming by,under or through Grantor,other than the following exceptions:
(I)ad valorem taxes for the current year;
(2)utility easements and unviolated covenants,conditions,and restrictions;and
(3)such other liens,encumbrances,or defects as may be specifically approved by Grantee in writing.
IN WITNESS WHEREOF, the Grantor has duly executed this North Carolina Special Warranty Deed, if an entity by its duly
authorized representative.
216 Freeland Ln LLC
BY:Denciti Partners.LLC,a North Carolina limited liability
company.its Manager
BY:
Eric Lemieux,Manager
BY:ARB Investments.LLC,a North Carolina limited liability
company.its ypayter ,
�
BY ,fY "ti "_
And Blumenthal,
Manager
STATE OF NORTH CAROLINA,COUNTY OF MECKLENBURG
I, Anne D.Coley ,a Notary of the above state and county,certify that the following person(s)
personally appeared before me on the 30th day of November ,20 23 each acknowledging to
me that he/she/they signed the foregoing document,in the capacity represented and identified therein(if any):
Eric Lemieux,Manager of Denciti Partners,LLC.as Manager of 216 Freeland Ln LLC,and Andrew Blumenthal.Manager of ARB .
Investments,LLC,as Manager of 216 Freeland Ln LLC
; ,!e,zzrnP
Cir....
��, •••""".... 0 ,',� Notary Public(Official Signature)
%0' My cornmission expires: September 17 6
=yam% �11 : rn'
r73; �i : <
G . /C; i z.
2
NC Bar Association Real Property Section Form No.3 0 Revised 02/202I
Printed by Agreement with the NC Bar Association

•
For Registration
Fredrick Smith
Register of Deeds
Mecklenburg County, NC
Electronically Recorded
2023 Dec 07 09:10 AM RE Excise Tax: $ 0.00
Book: 38520 Page: 942 - 985 Fee: $ 142.00
Instrument Number: 2023114469
iltsicUL
Prepared By and Return To: Johnston,Allison & Hord,P.A. (JAP),PO Box 36469,Charlotte,NC
28236
DECLARATION OF CREATION
OF
FREELAND TOWNHOMES,
A NORTH CAROLINA PLANNED COMMUNITY
NOTE FOR TITLE ABSTRACTOR: THIS DOCUMENT PROVIDES FOR THE PAYMENT OF
A CONTRIBUTION FEE UPON THE CONVEYANCE OR TRANSFER OF A LOT.
THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF
POLITICAL SIGNS. THIS DOCUMENT REGULATES OR PROHIBITS •
THE DISPLAY OF THE FLAG OF THE UNITED STATES OF
AMERICA OR STATE OF NORTH CAROLINA.
This Declaration of Creation of Freeland Townhomes (the "Declaration") is made December 6,
2023, by COPPER BUILDERS, LLC, a North Carolina limited liability company, (the "Declarant").
Declarant states and declares as follows:
A. Declarant is the owner of that tract of land located in Mecklenburg County, North
Carolina, and described in Exhibit A attached hereto and incorporated herein (the "Townhome
Property").
B. Declarant subdivided the Townhome Property into residential Townhome Lots and
Townhome Common Areas.
C. Declarant intends to construct single-family residential townhomes on the Townhome
Lots and establish the Townhome Property as a planned community to be known as Freeland
Townhomes (the "Townhome Community"), and impose on the Townhome Property additional
covenants, conditions and restrictions to protect and to promote the beneficial ownership, use and
enjoyment of all Townhome Lots located within the Townhome Community.
THEREFORE, pursuant to Chapter 47F of the North Carolina General Statutes (the "Planned
Community Act"), Declarant hereby executes this Declaration to create Freeland Townhomes, a North
Carolina planned community, and hereby publishes and declares that all of the Townhome Property shall
be held and owned subject to the following terms, provisions, covenants, conditions and restrictions,
which shall run with the Townhome Property and which shall be binding upon all owners of any portion
of the Townhome Property and their lessees, guests, mortgagees, heirs, executors, administrators,
successors and assigns.
submitted electronically by "Johnston, Allison & Hord, P.A."
in compliance with North Carolina statutes governing recordable documents
and the terms of the submitter agreement with the Mecklenburg County Register of Deeds.

Article I Application of the North Carolina Planned Community Act.
The terms and provisions of Chapter 47F of the North Carolina General Statutes, as the same
shall be amended from time to time,shall apply to the Townhome Community.
Article II Definitions.
The definitions set forth in N.C.G.S. 47F-1-103 shall apply to this Declaration and are
§
incorporated herein,except that the terms listed below shall have the specific meanings stated:
"Articles of Incorporation" shall mean the Articles of Incorporations for Freeland Townhomes
Owners' Association,Inc.,a North Carolina nonprofit corporation.
"Annexation Declaration" shall mean an instrument recorded at the Mecklenburg County
Registry that subjects additional land to this Declaration as set forth in Article XVII of this Declaration.
"Board of Directors"or"Board"shall mean the executive board of the Townhome Association,
as defined by the Planned Community Act and as created by the Bylaws.
"Bylaws" shall mean the bylaws of the Townhome Association as they now or hereafter exist
and as they may be amended from time to time.
"Declarant" shall mean COPPER BUILDERS, LLC, a North Carolina limited liability
company, or any successor or assign designated as Declarant in a Recorded Document executed by the
immediately preceding Declarant.
"Declarant Control Period" shall mean the period of time during which Declarant holds a fee
interest or contractual right in any portion, however small, of the land described in Exhibit A and
Exhibit A-1 attached hereto and incorporated herein.
"Declaration" shall mean this Declaration of Creation of Freeland Townhomes, a North
Carolina planned community, and any amendments hereto or restatements hereof.
"Designated Maintenance Items"means and includes the landscaping and related irrigation and
lighting located in the eight (8) foot wide planting strips located adjacent to the Property in the public
right of way and shown on the Zoning Plan.
"Emergency Escape and Rescue Easement" means an easement for the ingress and egress of
police, sheriff, fire protection, ambulance and other similar emergency agencies or persons now or
hereafter servicing the Townhome Property as shown on the Plat and as more specifically set forth
herein.
"Emergency Escape and Rescue Easement Area"means the area shown as such on the Plat.
"Governing Documents" shall mean, collectively, this Declaration, any Annexation
Declaration, the Articles of Incorporation, the Bylaws, and the Rules and Regulations, as the same may
be amended from time to time.
"Member" shall mean and refer to every person or entity entitled to membership in the
Townhome Association as provided in Article III below.
"Mortgage" shall mean a deed of trust recorded at the Mecklenburg County Registry that is a
lien against any Lot. "Mortgagee" shall refer to a beneficiary or holder of a Mortgage. A "First
Mortgage" shall be a Mortgage having priority over all other Mortgages encumbering a Lot. "First
Mortgagee"shall refer to a beneficiary or holder of a First Mortgage.
2
33158.4017
4858-3088-8907,v.3

"Owner" shall mean and refer to an owner of record of a fee simple interest in any Townhome
Lot, but excluding those having an interest only as security for the performance of an obligation. There
may be more than one Owner of any single Townhome Lot.
"Person" or"Persons" shall mean an individual or individuals, a corporation or corporations, a
partnership or partnerships, a trustee or trustees,or any other legal entity or entities.
"Nat" shall mean that certain subdivision map of the Townhome Property recorded with the
Mecklenburg County Register of Deeds in Book 72 at Page 278, which is incorporated herein by
reference.
"Recorded Document"shall mean any document,including any map or plat of survey,recorded
at the Office of the Register of Deeds of Mecklenburg County,North Carolina.
"Regular Annual Assessments" shall mean those assessments levied at least annually as to all
Townhome Lots subject to assessment under Article IX of this Declaration.
"Rules & Regulations" shall mean the initial rules and regulations for use and occupancy of the
Townhome Lots and the Townhome Common Area set forth in Exhibit B,as they may be supplemented,
modified,restated or superseded pursuant to Article IV below.
"Special Assessments"shall mean assessments levied in accordance with Section 9.2 below.
"Specific Assessments"shall mean assessments levied in accordance with Section 9.3 below.
"Supplemental
Declaration" means an instrument recorded in the MecklenburgCounty
Registry that imposes additional or different covenants, conditions and/or restrictions on additional land
made subject to this Declaration by an Annexation Declaration and may be included in such Annexation
Declaration.
"Townhome Association" shall mean Freeland Townhomes Owners' Association, Inc.,a North
Carolina non-profit corporation, its successors and assigns.
"Townhome Building" shall mean any building comprised of residences located upon
Townhome Lots. It is contemplated there will be four (4) Townhome Buildings in the Townhome
Community.
"Townhome Common Area" shall mean all property, and any improvements thereon, wherever
located, owned or leased by the Townhome Association or subjected to an easement or license in favor of
the Townhome Association for the common use and enjoyment of Members. Townhome Common Area
may be owned by the Townhome Association or it may be owned by another person or entity with the
Townhome Association having a right or casement thereon or an obligation in connection therewith.
Townhome Common Area shall include all water and sewer lines serving more than one Townhome Lot
and located outside any public rights-of-way or utility easements of a public utility provider. Townhome
Common Area shall include any drainage easements, stormwater pipes, detention and retention facilities
serving more than one Townhome Lot and not accepted by any governmental authority for maintenance
(but not including any such facilities that serve Lots other than Townhome Lots). Townhome Common
Area shall also include (i)all land on the Plat,which is outside of a Townhome Lot, and the landscaping,
fencing,retaining walls, and lighting located thereon; (ii)all sidewalks and related lighting located within
the Townhome Property that serve more than one Townhome Lot; (iii) any real property designated as
10' Class 'C' Landscape Buffer, "SUE", "C.O.S.", "Common Area" or "Open Space" or similar
designation on any Recorded Document and the improvements thereon including, but not limited to, the
trash and mail kiosk improvements; and (iv) any easements which benefit the Townhome Property and
for which the Association and/or Owners have any obligations.
3
33158.4017
4858-3068-8907,v.3

"Townhome Common Expense" shall mean and refer to the actual and estimated costs and
expenses incurred, or anticipated to be incurred, by the Townhome Association in connection with the
maintenance, repair, replacement and operation of Townhome Common Areas and in performing its
maintenance, repair and replacement obligations pursuant to Section 6.2 of this Declaration, and in
connection with costs and expenses incurred by the Townhome Association in connection with the
Designated Maintenance Items. Townhome Common Expenses shall include lease payments on any
street lights within the Townhome Community that are leased by Declarant or the Townhome
Association from the utility provider furnishing such lights.
"Townhome Community-Wide Standard"shall mean the standard of conduct,maintenance, or
other activity generally prevailing in the Townhome Community or the minimum standards established
pursuant to the architectural guidelines under the Rules and Regulations, and Board resolutions,
whichever is the higher standard. Declarant shall initially establish such standard, which may involve
both objective and subjective elements. The Townhome Community-Wide Standard shall evolve as the
Townhome Community evolves.
"Townhome Limited Common Expense" shall mean and refer to the actual estimated costs and
expenses incurred, or anticipated to be incurred, by the Townhome Association in connection with the
maintenance, repair and/or replacement by the Townhome Association of the exterior maintenance and
repair of the Townhome Buildings and Lots pursuant to Section 6.2 of this Declaration when such
maintenance and repair involves less than all of the Townhome Buildings. For example if the roof on one
Townhome Building (but not all) is damaged,the costs to repair that roof shall be a Townhome Limited
Common Expense to be paid as a Specific Assessment by the Owners of the Townhome Lots on which
such Townhome Building is located.
"Townhome Lot" shall mean any separate parcel of land within the Townhome Community
designated for construction and maintenance of a townhome residence and designated for separate
ownership or occupancy and residential use on the Plat.
"Zoning Plan" shall mean those certain plans approved in connection with Rezoning Petition
No. 2022-020, the terms and conditions of which arc incorporated herein by reference and a copy
attached as Exhibit C.
Article"ITT Freeland Townhome Owners' Association.
Every person or entity who is an owner of a fee or undivided fee simple interest in any of the
Townhome Lots shall be a Member of the Townhome Association. Ownership of such interest shall be
the sole qualification for membership,and membership shall be appurtenant to and shall not be separated
from such ownership. The Townhome Association shall be organized and governed as follows:
3.1 Purposes. The purposes of the Townhome Association shall be:
3.1.1 To maintain and preserve all Townhome Common Areas;
3.1.2 To enforce the provisions of the Governing Documents;
3.1.3 To perform all duties and functions allotted to owner's associations pursuant to
Article 3 of the Planned Community Act;
3.1.4 To promote and to protect the enjoyment and beneficial use and ownership of the
Townhome Lots; and
3.1.5 To promulgate and enforce the Rules and Regulations and administrative rules
and regulations for use of the Townhome Common Area.
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3.2 Powers and Responsibilities. The Townhome Association shall have all powers and
responsibilities and shall perform all duties and functions allotted to owner's associations by Article 3 of
the Planned Community Act,the terms and provisions of which are incorporated herein. The Townhome
Association shall also have all rights and powers and shall perform all duties and functions that may be
assigned to it by Declarant pursuant to this Declaration.
3.3 Voting Rights and Meetings. On matters of Townhome Association business submitted to
vote of the membership,there shall be two (2)classes of membership:
3.3.1 Class A. Every person who is an Owner, with the exception of Declarant, shall
be a Class A Member. Class A Members shall be entitled to one (I) vote per Townhome Lot. No more
than one (1) vote per Townhome Lot may be cast by Class A Members, regardless of the number of
Owners of a given Townhome Lot.
3.3.2 Class B. Declarant shall be the sole Class B Member. Class B membership shall
be a full voting membership and, during its existence,the Class B Member shall be entitled to vote on all
matters or issues before or considered by the Townhome Association. The Class B Member shall be
entitled to one (1)vote for each Townhome Lot it owns,plus one (1)vote for each Townhome Lot owned
by a Person other than Declarant. The Class B membership shall cease and shall be converted to Class A
membership at such time as the first of the following events occur: (i) the date that all the Townhome
Lots in the Townhome Community have been conveyed by Declarant to other Owners; (ii) the surrender
by Declarant of the right to appoint or remove any officer of the Townhome Association or member of
the Board by a Recorded Document executed by Declarant;or(iii)the expiration of Declarant's rights to
appoint or remove any officer of the Townhome Association or member of the Board pursuant to Article
X below.
Unless otherwise provided herein or in the Planned Community Act or the
Bylaws, all voting matters shall be decided by a simple majority vote. Requirements for a quorum shall
be as provided by the Bylaws. The Members shall meet as provided by the Bylaws.
3.4 Bylaws. The initial Board shall enact and adopt all and any Bylaws that they deem necessary
for the operation of the Townhome Association, which Bylaws shall be binding upon all Members,their
Mortgagees, lessees,agents and invitees.
Article TV Use and Occupancy of Townhome Lots and Townhome Common Areas.
4.I Fundamental Restriction on Use. The Townhome Lots and Townhome Common Area shall
be used for residential and related purposes only, subject to and consistent with the Governing
Documents, including the Rules and Regulations; provided that Declarant and/or the Townhome
Association may maintain a business or management office within the Townhome Community, and
provided that Declarant may maintain information centers, model homes and sales offices within the
Townhome Community. Notwithstanding the above, home business use ancillary to the primary
residential use of a Townhome Lot is permitted, subject to the Rules and Regulations and all applicable
laws and ordinances of governmental authorities.
4.2 Fundamental Restriction on Occupancy. The composition of occupants of a single
Townhome Lot shall conform to applicable laws, rules and regulations. Subject to the above, Owners
may lease their townhome unit to occupants who may not comprise a single housekeeping unit. Further,
but subject to the above, Owners may rent their townhome units on a short term basis through services
such as AirBNB and VRBO.
4.3 Additional Restrictions on Use and Occupancy of Townhome Lots. Use and occupancy of
all Townhome Lots shall be restricted as follows:
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4.3.1 Completion of Construction. Except with respect to the initial construction of
the Townhome Buildings by Declarant, once construction of any structure located within the Townhome
Community is begun, it must be prosecuted diligently and must be completed within twelve (12) months
of its commencement,unless otherwise approved in writing by Declarant.
4.3.2 Subdivision of Lots. No dwelling shall be erected on less than one Townhome
Lot and no Townhome Lot shall be subdivided; however, owners of adjoining Townhome Lots may
adjust a common boundary line, provided that the adjustment conforms in all respects with all applicable
governmental regulations and ordinances,and with this Declaration.
4.3.3 Signs. No commercial signs of any kind shall be displayed to public view on any
Townhome Lot. This provision shall not apply to marketing or informational signs placed on any
Townhome Lot by Declarant. This provision shall not apply to signs used to advertise a Townhome Lot
for sale or rent, provided that no such sign shall be larger than 18" x 24". Placement and display of
political signs on any Townhome Lot shall be subject to the Rules and Regulations.
4.3.4 Storage of Building Materials. No lumber; brick, stone, cinder block, concrete
block, cement or other materials used for building purposes shall be stored upon any Townhome Lot
longer than a reasonable time for the completion of the construction in which they are to be used. There
shall be no storage of building materials on any street or on any Townhome Lot not owned by Declarant.
4.3.5 Temporary Structures. No temporary structures such as sheds shall be erected or
placed on a Townhome Lot without the written approval of Declarant or the Townhome Association.
Such structures,if permitted,may be used only during periods of construction,and never as a residence.
4.3.6 Parking and Vehicle Storage. No vehicles may be parked or stored on the
Townhome Property. Parking is available in the adjacent public right of way only, which parking is not
exclusive to Owners.
4.3.7 Offensive Activities Prohibited. No noxious or offensive activity shall be
conducted upon any Townhome Lot or Townhome Common Area, nor shall anything be conducted
thereon tending to cause embarrassment, discomfort, annoyance or nuisance to the neighborhood or to
the occupants of any Lot.
4.3.8 Underground Utilities. All utility lines serving structures located on Townhome
Lots shall be placed underground.
4.3.9 Mobile Homes and Manufactured Housing. No mobile home, trailer or
manufactured housing shall be located on any Townhome Lot except for temporary construction trailers
of Declarant.
4.3.10 Screening. Boats, boat trailers, jet skis or other watercraft, campers, satellite
dishes, antennae, clotheslines, pet enclosures and the like shall not be located on a Townhome Lot so as
to be visible from any roadway or any other Townhome Lot. Satellite dishes shall comply with the Rules
and Regulations.
4.4 Rules and Regulations. In addition to the restrictions stated above, which may be modified
or rescinded only by an amendment to this Declaration, use and occupancy of the Townhome Lots and
Townhome Common Area shall be subject to the Rules and Regulations, which are intended to govern
day-to-day use and occupancy of the Townhome Lots and Townhome Common Areas. The initial Rules
and Regulations for the Townhome Community are set forth in Exhibit B attached hereto and
incorporated herein. In order to adapt and respond to changing or unforeseen circumstances affecting the
Townhome Community, Declarant, the Townhome Association and the Owners must have the ability to
change the Rules and Regulations in an expedited and inexpensive manner. Accordingly, the Rules and
Regulations may be amended, supplemented and/or rescinded and restated as set forth in this Section 4.4.
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4.4.1 Declarant's Authority. During the Declarant Control Period, Declarant shall
have the unilateral right to amend, supplement and/or rescind and restate the Rules and Regulations,
without prior notice to the Townhome Association or to other Owners; provided that no such action by
Declarant may have a materially adverse effect on title to or marketability of any Townhome Lot.
4.4.2 Board Authority. The Board may amend, supplement and/or rescind and restate
the Rules and Regulations. The Board shall send notice bymail to all Members concerninganysuch
proposed action at least five (5) business days prior to the Board meeting at which such action is to be
considered. Members shall have a reasonable opportunity to be heard at a Board meeting prior to such
action being taken. The Board's decision on such action shall be final, subject only to subsection 4.4.1
above.
4.4.3 Members'Authority. Members representing more than fifty percent(50%)of the
total votes in the Townhome Association, at a Townhome Association meeting duly called for such
purpose,may amend, supplement and/or rescind and restate the Rules and Regulations.
4.4.4 Conflicts. Nothing in this Article shall authorize the Board to modify, repeal or
expand any provision of this Declaration. In the event of a conflict between this Declaration and the
Rules and Regulations,this Declaration shall control.
4.5 Limitations. The right and ability of Declarant and the Board to amend, supplement or
restate the Rules and Regulations shall be limited as follows:
4.5.1 Displays. The rights of Owners to display religious and holiday signs, symbols
and decorations inside structures on their Townhome Lots of the kinds normally displayed in residential
townhome neighborhoods shall not be abridged, but no such display may violate the Townhome
Community-Wide Standard or violate any other provision of this Declaration.
4.5.2 Activities Within Dwellings. No rule established pursuant to this Article shall
interfere with the activities carried on within the confines of dwellings, except that the Townhome
Association may restrict or prohibit any activities that create costs for the Townhome Association or
other Owners, that create a danger to the health or safety of others, that generate excessive noise, traffic
or use of parking facilities,that create unsightly conditions visible outside the dwelling or that otherwise
violate the provisions of this Declaration or any applicable governmental law,ordinance or regulation.
4.5.3 Alienation. No rule promulgated pursuant to this Section shall prohibit leasing or
transfer of any Townhome Lot or require consent of the Townhome Association or Board for leasing or
transfer of any Townhome Lot.
4.5.4 Abridging Existing Rights. No rule shall require an Owner to dispose of personal
property that was in or on a Townhome Lot prior to the adoption of such rule and which was in
compliance with all rules previously in force. This limitation shall apply only for the duration of such
Owners' ownership of the Townhome Lot personally, and this right shall not run with title to any
Townhome Lot.
4.6 Intentionally omitted.
4.7 Notice to Purchasers and Mortgagees. All prospective purchasers and mortgagees are given
notice that use of the Townhome Lots and the Townhome Common Area is restricted and governed by
the Rules and Regulations, as they may be amended, expanded, and otherwise modified hereunder. Each
Purchaser, by acceptance of a deed, acknowledges and agrees that the use, enjoyment and marketability
of his or her Townhome Lot shall be affected by the Rules and Regulations which may change from time
to time, and that the current Rules and Regulations may not be set forth in a Recorded Document. Take
notice that Declarant or the Townhome Association may have changed the initial Rules and
Regulations since the recording of this Declaration. The Townhome Association shall provide a copy
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•
of the current Rules and Regulations to any prospective purchaser Member or Mortgagee upon written
request and payment of the reasonable cost of such copy.
Article V Architecture and Landscaping.
5.1 General.
No structure or thing, including but not limited to fences, shall be placed, erected, or
installed upon or adjacent to any Townhome Lot and no improvements or other work (including staking,
clearing, excavation, grading, and other site work, or exterior alterations of existing improvements) shall
take place on such Lot except pursuant to approval and in compliance with this Article and the
Architectural Guidelines,
Any Owner may remodel,paint,or redecorate the interior of a dwelling located on his or her
Townhome Lot without approval; provided that modifications to the interior of a dwelling visible from
outside the structure shall be subject to approval.
Any improvements constructed on or adjacent to any Townhome Lot shall be designed by
and built in accordance with the plans and specifications of a licensed architect unless otherwise
approved by Declarant or its designee in its sole discretion.
This Article shall not apply to Declarant's activities or to the Association's activities during
the Declarant Control Period.
All Townhome Buildings shall comply in all respects with any and all materials and other
architectural requirements on the Zoning Plan including the following:
5.1.1 The maximum height of (i) Townhome Buildings 1 and 2 shall not exceed a
height of 36'-0",and (ii)Townhome Buildings 3 and 4 shall not exceed a height of 40'-0".
5.1.2 Townhome Buildings 1 and 2 may not incorporate rooftop terraces.
5.1.3 Vinyl shall not be used as a primary exterior building material but may be used
for windows, trim, soffits,and railings.
5.1.4 Stoops and porches for the dwellings shall be no less than 4' in width.
5.1.5 The primary pedestrian entry to each dwelling shall be a prominent entrance on
the front elevation and face a public right-of-way frontage.
5.2 Architectural Review.
5.2.1 By Declarant. Each Owner, by accepting a deed or other instrument conveying
any legal or equitable interest in a Townhome Lot, acknowledges that, as the builder and owner of real
estate in the vicinity of and within the Townhome Community, Declarant has a substantial interest in the
quality and appearance of improvements within the Townhome Community,and in determining that they
enhance Declarant's reputation as a builder and do not impair Declarant's ability to market, sell,or lease
its property. Therefore, no Owner shall commence any activity within the scope of this Article on his or
her Townhome Lot unless and until Declarant or its designee has given its prior written approval for such
activity,which approval may be granted or withheld in Declarant's or its designee's sole discretion.
In reviewing and acting upon any request for approval, Declarant or its designee
shall act solely in Declarant's interest and shall owe no duty to any other Person. Declarant's rights
reserved under this Article shall continue as long as Declarant owns any portion of the real property
described in Exhibit A or A_1 or has the right to expand the Townhome Community, unless earlier
terminated by Declarant by a Recorded Document.
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Declarant may, in its sole discretion,designate one or more Persons from time to
time to act on its behalf in reviewing applications hereunder.
Declarant may from time to time, but shall not be obligated to, delegate all or a
portion of its reserved rights under this Article to any other Person or committee. Any such delegation
shall be in writing, specifying the scope of responsibilities delegated, and shall be subject to (a)
Declarant's right to revoke such delegation at any time and reassume jurisdiction over the matters
previously delegated, and (b) Declarant's right to veto any decision which Declarant determines, in its
sole and exclusive discretion,to be inappropriate or inadvisable for any reason. So long as Declarant has
any rights under this Article, the jurisdiction of any other Person or committee shall be limited to such
matters as are specifically delegated to it by Declarant.
5.2.2 Architectural Review Committee. Upon delegation by Declarant or upon
expiration of the Declarant Control Period, the Association, acting through an architectural review
committee ("ARC") appointed by the Board, shall assume jurisdiction over architectural matters. The
ARC shall consist of three (3) Persons who shall serve and may be removed and replaced in the Board's
discretion. The members of the ARC need not be representatives of Members, and may, but need not,
include architects, engineers, or similar professionals, whose compensation, if any, the Board shall
establish from time to time.
Unless and until such time as Declarant delegates all or a portion of its reserved
rights to the Association or expiration of the Declarant Control Period, the Association shall have no
jurisdiction over architectural matters.
5.3 Reviewer. For purposes of this Article, the committee or entity having jurisdiction over
architectural matters in a particular case shall be referred to as the "Reviewer." The Reviewer may
establish and charge reasonable fees for review of applications hereunder and may require such fees to be
paid in full prior to review of any application. Such fees may include the reasonable costs incurred in
having any application reviewed by architects,engineers,or other professionals.
5.4 Guidelines and Procedures.
5.4.1 Architectural Guidelines. Declarant may prepare Architectural Guidelines
applicable to Townhome Lots which may contain general provisions applicable to all Townhome Lots as
well as specific provisions which vary among the Townhomc Lots according to location or other factors.
The Architectural Guidelines are intended to provide guidance to Owners regarding matters of particular
concern to the Reviewer in considering applications hereunder. The Architectural Guidelines are not the
exclusive basis for the Reviewer's decisions, and compliance with the Architectural Guidelines does not
guarantee approval of any application. Further, the Architectural Guidelines may be more restrictive
than guidelines followed by Mecklenburg County or as set forth in the International Builder's Code.
Declarant shall have sole and full authority to amend the Architectural
Guidelines as long as it owns any portion of the real property described in Exhibit A or A-1 or has a
right to expand the Townhome Community, notwithstanding a delegation of reviewing authority, unless
Declarant also delegates the power to amend the Architectural Guidelines. Upon termination or
delegation of Declarant's right to amend, the ARC shall have the authority to amend the Architectural
Guidelines with the Board's consent. Any amendments to the Architectural Guidelines shall be
prospective only and shall not apply to require modifications to or removal of structures previously
approved once the approved construction or modification has commenced. There shall be no limitation
on the scope of amendments to the Architectural Guidelines, and such amendments may remove
requirements previously imposed or otherwise make the Architectural Guidelines less restrictive.
The Association shall maintain a copy of the Architectural Guidelines, as they
may exist from time to time, and shall make them available to Members or Owners for inspection and
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copying upon reasonable notice during the Association's business hours. In Declarant's discretion, such
Architectural Guidelines may be recorded at the Mecklenburg County Registry, in which event the
recorded version, as it may be amended, shall control in the event of any dispute as to which version of
the Architectural Guidelines was in effect at any particular time.
5.4.2 Procedures. Except as the Architectural Guidelines otherwise specifically
provide,no activity described in Section 5.1 shall commence on any Lot until an application for approval
has been submitted to and approved by the Reviewer. Such application shall include plans and
specifications showing site layout, exterior elevations, exterior materials and colors, landscaping,
drainage, exterior lighting, irrigation, and other features of proposed construction, as applicable. The
Architectural Guidelines and the Reviewer may require the submission of such additional information as
deemed necessary to consider any application.
In reviewing each submission, the Reviewer may consider any factors it deems
relevant, including, without limitation, harmony of external design with surrounding structures and
environment. Decisions may be based solely on aesthetic considerations. Each Owner acknowledges that
determinations as to such matters are purely subjective and opinions may vary as to the desirability or
attractiveness of particular improvements. Subject to Declarant's veto power described below, the
Reviewer shall have the sole discretion to make final, conclusive, and binding determinations on matters
of aesthetic judgment. Such determinations shall not be subject to review so long as they are made in
good faith and in accordance with the procedures described in this Article.
The Reviewer shall make a determination on each application within thirty (30)
days after receipt of a completed application and all required information. The Reviewer may(a)approve
the application,with or without conditions; (b) approve a portion of the application and disapprove other
portions; (c) disapprove the application; or (d) request further or additional information. The Reviewer
may, but shall not be obligated to, specify the reasons for any objections or offer suggestions for curing
any objections.
Until expiration of Declarant's rights under this Article,the Reviewer shall notify
Declarant in writing within three (3) business days after the Reviewer has approved an application. The
notice shall be accompanied by a copy of the application and any additional information which Declarant
may require. Declarant shall have ten (10) days after receipt of such notice to veto any such action, in its
sole discretion,by written notice to the Reviewer and the applicant.
In any event, the Reviewer shall notify the applicant in writing of a final
determination within forty-five (45) days after its receipt of a completed application and all required
information. In the event that the Reviewer fails to respond in a timely manner,approval shall be deemed
to have been given, subject to Declarant's veto right. However,no approval,whether expressly granted or
deemed granted pursuant to the foregoing, shall be inconsistent with the Architectural Guidelines unless
the Reviewer has granted a variance pursuant to Section 5.6.
Notice shall be deemed to have been given at the time the envelope containing
the response is deposited with the U.S. Postal Service. Personal delivery of such written notice shall,
however,be sufficient and shall be deemed to have been given at the time of delivery to the applicant.
If construction does not commence on a project for which plans have been
approved within one (1) year after the date of approval, such approval shall be deemed withdrawn, and it
shall be necessary for the Owner to reapply for approval before commencing construction of any
proposed improvements. Once construction is commenced, it shall be diligently pursued to completion.
All exterior walls and the roof of each dwelling on a Townhome Lot must be completed within one
hundred eighty (180) days after commencement, and all work shall be completed within three hundred
sixty (360) days after commencement unless otherwise specified in the notice of approval or unless the
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Reviewer grants an extension in writing, which it shall not be obligated to do. If approved work is not
completed within the required time, it shall be considered nonconforming and shall be subject to
enforcement action by the Association, Declarant,or any aggrieved Member.
The Reviewer may by resolution exempt certain activities from the application
and approval requirements of this Article, provided such activities are undertaken in strict compliance
with the requirements of such resolution.
5.5 No Waiver of Future Approvals. Each Owner acknowledges that the Persons reviewing
applications under this Article will change from time to time and that opinions on aesthetic matters, as
well as interpretation and application of the Architectural Guidelines,may vary accordingly. In addition,
each Owner acknowledges that it may not always be possible to identify objectionable features until
work is completed, in which case it would be unreasonable to require changes to the improvements
involved, but the Reviewer may refuse to approve similar proposals in connection with any future
requests for approvals required under this Declaration. Approval of applications or plans, or in
connection with any other matter requiring approval, shall not constitute a binding precedent in any other
future matter or operate as a waiver of the right to withhold approval as to any similar applications,plans,
or other matters subsequently or additionally submitted for approval in the future.
5.6 Variances. Upon submission of a written request for same,the Reviewer may, from time to
time,in its sole discretion,authorize variances from compliance with any of its guidelines and procedures
when circumstances such as topography, natural obstructions, hardship, or aesthetic or environmental
considerations require,but only in accordance with duly adopted rules and regulations. No variance shall
(a) be effective unless in writing; (b) be contrary to this Declaration; or (c) estop the Reviewer from
denying a variance in other circumstances. For purposes of this Section, the inability to obtain approval
of any governmental agency, the issuance of any permit, or the terms of any financing shall not be
considered a hardship warranting a variance. Written requests for variances shall be deemed to be
disapproved in the event the ARC has not expressly and in writing approved such request within thirty
(30) business days after the submission of such request. No member of the ARC shall be liable to any
Owner for any claims, causes of action, or damages arising out of the grant or denial of any variance to
any Owner. Each request for a variance submitted hereunder shall be reviewed separately and apart from
other such requests and the grant of a variance to any Owner shall not constitute a waiver of the ARC's
right to strictly enforce the covenants, restrictions and architectural standards provided hereunder or
under any Annexation or Supplemental Declaration against any other Owner.
5.7 Limitation of Liability. The standards and procedures this Article establishes are intended as
a mechanism for maintaining and enhancing the overall aesthetics of the Townhome Community;they do
not create any duty to any Person. Review and approval of any application pursuant to this Article may
be based on aesthetic considerations only. The Reviewer shall not bear any responsibility for ensuring(a)
the structural integrity or soundness of approved construction or modifications, (b) compliance with
building codes and other governmental requirements, (c)that Townhome Lots are of comparable quality,
value, size, or of similar design, aesthetically pleasing, or otherwise acceptable to neighboring property
owners,(d)that views from any other Townhome Lots or the Townhome Common Area are protected, or
(e)that no defects exist in approved construction.
Declarant,the Association,the Board, any committee,or any member of any of the foregoing
shall not be held liable for soil conditions, drainage, or other general site work; any defects in plans
revised or approved hereunder; any loss or damage arising out of the actions,inaction,integrity,financial
condition,or quality of work of any contractor or its subcontractors,employees, or agents;or any injury,
damages,or loss arising out of the manner or quality of approved construction on or modifications to any
Lot. In all matters, the Association shall defend and indemnify the Board, the ARC, and any members
thereof as provided in the Bylaws.
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5.8 Certificate of Compliance. Any Owner may request that the Reviewer issue a certificate of
architectural compliance certifying that such Owners' Townhome Lot has no known violations of this
Article or the Architectural Guidelines. The Association shall either grant or deny such request within
thirty (30) days after receipt of a written request and may charge a reasonable administrative fee for
issuing such certificates. Issuance of such a certificate shall stop the Association from taking
enforcement action with respect to any condition as to which the Association had notice as of the date of
such certificate.
5.9 View Impairment. Neither Declarant nor the Townhome Association guarantee or represent
that any view over and across any portion of the Townhome Community or any adjacent property will be
preserved without impairment. Any additions or changes, whether occurring in the course of developing
or maintaining the Townhome Community,may diminish or obstruct any view from Lots and any express
or implied easements for view purposes or for the passage of light and air are hereby expressly
disclaimed.
5,10 Enforcement.
5.10.1 It is Declarant's intent that the architectural control provisions of this
Declaration and any Annexation or Supplemental Declarations are to permit control of the architectural
design and landscaping and to establish quality standards for construction and construction activity in the
Townhome Community and to help preserve values of properties in the Townhome Community. All
Owners, by purchasing property subject to this Declaration, acknowledge that a violation of any such
provisions could result in irreparable harm and damage to other Owners of property in the Townhome
Community and to Declarant, and to the values of their respective properties in the Townhome
Community, a monetary measure of which harm and damage would be difficult to establish.
Accordingly, the Declarant, prior to the expiration of the Declarant Control Period, and thereafter the
Townhome Association shall have the specific right (but not the obligation) to enforce and/or to prevent
any violation of the provisions contained in this Article V by a proceeding at law or in equity against the
person or persons violating or attempting to violate any such provisions. Declarant hereby specifically
reserves and grants unto the ARC, the Board and any agent or member thereof, the right of entry and
inspection upon any portion of the Property for the purpose of determination by the ARC or the Board
whether there exists any construction of any improvement which violates the terms of any approval by
the ARC,the terms of the Architectural Guidelines, the terms of this Declaration or any Annexation and
Supplemental Declaration,or the terms of any amendments hereto or thereto.
5.10.2 As to nonconforming or unapproved improvements, Declarant, during the
Declarant Control Period, and the Townhome Association may require any Owner to restore such
Owners' improvements to the condition existing prior to the construction thereof (including, without
limitation, the demolition and removal of any unapproved improvements) if such improvements were
commenced or constructed in violation of this Article. In addition,the Townhome Association may, but
has no obligation to, cause such restoration, demolition and removal of any such unapproved
improvements to be performed and to levy the amount of the cost thereof as a Specific Assessment
against the Townhome Lot, or portion of the Townhome Property upon which such unapproved
improvements were commenced or constructed. In the event that it becomes necessary to resort to
litigation to determine the propriety of any constructed improvement, to remove any unapproved
improvement or otherwise to remedy a violation of the Architectural Guidelines, the Townhome
Association shall be entitled to recover court costs, attorneys' fees and expenses incurred by the
Declarant, Townhome Association and/or the ARC, as applicable in connection therewith, which costs,
fees and expenses may be levied as a Specific Assessment against the Townhome Lot or other portion of
the Townhome Property upon which such unapproved improvements was commenced or constructed.
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Article VI Maintenance and Repair
6.l General. All areas within the Townhome Property and all areas covered by easements or
licenses owned or held by or for the benefit of the Townhome Association shall be maintained to the
Townhome Community-Wide Standard, and to all other standards stated in this Declaration,the Bylaws,
and Rules and Regulations of the Townhome Association. The Townhome Association and the
individual Owners shall be responsible for such maintenance,as provided in this Article VI.
6.2 Townhome Association Responsibility. The Townhome Association shall maintain any
easement or licenses owned or held by the Townhome Association, all Townhome Common Areas
(except with respect to Owner obligations under Section 6.3), all fencing surrounding the rear yards of
each Townhome Lot, and all landscaping, paving, streets, structures and improvements of any nature
located thereon outside of such fenced in areas; any water, sewer, electrical, gas and other utility
facilities serving more than one Townhome Lot, and drainage and storm-water retention system facilities
on the Townhome Property to the extent not maintained by a governmental entity and the Designated
Maintenance Items. In addition, the Townhome Association shall provide exterior maintenance, repair,
and standard termite services to the exterior of each Townhome Building and Townhome Lot which is
subject to assessment hereunder,as follows: paint,repair,replace and care for roofs,gutters,downspouts,
exterior Townhome Building surfaces, maintain and replace, when necessary, all landscaping located
outside of any fenced or walled in area (including cutting grass during growing season, re-seeding and
fertilizing lawns, mulching bedding, and leaf removal during the fall) and replacing, as needed, the
artificial turf installed by Declarant within any fenced in areas; provided that the Association shall not be
responsible for providing exterior maintenance of any improvements and betterments made and installed
by individual Owners or the removal of snow and ice from any sidewalks or other walkways, drives or
parking areas located outside of Townhome Common Areas or for the cleaning and replacement of any
glass in exterior doors or windows. Such exterior maintenance by the Association shall not include glass
surfaces. In order to enable the Townhome Association to accomplish the foregoing, a perpetual
easement in gross over all the Townhome Lots and Townhome Common Area is hereby granted to the
Townhome Association for the purpose of unobstructed access over and upon each Townhome Lot and
Townhome Common Area at all reasonable times to perform maintenance as provided in this Article. No
such maintenance by an Owner shall reduce any assessments payable by him to the Townhome
Association. In the event that the need for maintenance or repair by the Townhome Association pursuant
to this subsection is caused through the willful or negligent act of any Owner, his or her family, guests,
invitees or delegates, the cost of such maintenance and repair shall be assessed against the Townhome
Lot(s) of such Owner(s) as a Specific Assessment pursuant to subsection 6.4 below,and may be collected
by the Townhome Association as provided in Article IX below.
6.3 Owners' Responsibility. Except as provided in subsection 6.2 above, each Owner shall
maintain, repair and/or replace as needed to keep in good condition and repair all improvements on
his/her/its Townhome Lot, at his/her/its sole cost and expense including replacing and cleaning exterior
doors and windows on each Owner's Townhome Lot, maintaining, cleaning, repairing and replacing the
patio on each Owner's Townhome Lot and replacing, as necessary,the astroturf in the rear yard of each
Owner's Townhome Lot.
6.4 Townhome Association's Right to Perform Owners' Responsibility. If any Owner or
occupant of a Townhome Lot fails to perform any of the duties or responsibilities set forth in this Article,
then the Townhome Association or Declarant may give such person written notice of such failure and
such person must,within ten(10) days after receiving such notice (which notice shall be deemed to have
been received upon deposit in any official depository of the United States mail, addressed to the party to
whom it is intended to be delivered at that parry's current address as shown by the records of the
Townhome Association, and sent by certified mail, return receipt requested), perform the care and
maintenance required or otherwise perform the duties and responsibilities of such Owner. Should any
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such person fail to fulfill this duty and responsibility within such period, then Declarant or the
Townhome Association, acting through its authorized agent or agents, shall have the right and power to
enter onto the Townhome Lot in question and perform such care and maintenance without any liability
for damages for wrongful entry,trespass or otherwise at any person. All Owner(s) of a Townhome Lot on
which such work is performed shall be liable for the cost of such work together with interest on the
amounts expended by the Townhome Association or Declarant in performing such work computed at the
rate of twelve percent (12.00%) per annum from the date(s) such amounts are expended until repaid to
the Townhome Association or Declarant, as the case may be, and for all costs and expenses incurred in
seeking the compliance of such Owner with his or her duties and responsibilities hereunder, and shall
reimburse the Townhome Association or Declarant, as the case may be, on demand for such costs and
expense (including interest as above provided). If such Owner shall fail to reimburse the Townhome
Association or Declarant, as the case may be, within thirty (30) days after mailing to such Owner of a
statement for such costs and expenses incurred by the Townhome Association or Declarant, the
Townhome Association may charge a Specific Assessment for such amounts against the Townhome Lot
of such Owner(s),and proceed to collect such Specific Assessment as provided in Article IX below.
6.5 Party Walls. Each wall which is built as a part of the original construction of a Townhome
Building upon the Townhome Property and placed on a boundary line between Townhome Lots, and all
reconstruction or extension of such walls, shall constitute party walls. Except as provided in this Article,
the general rules of law regarding party walls, lateral support in below-grade construction and liability
for property damage due to negligence or willful acts or omissions shall apply to party walls on the
Townhome Property. The following rules and principles shall also apply to the party walls:
6.5.1 Sharing of Repair and Maintenance. The cost of reasonable repair and
maintenance of a partywall shall be shared bythe Owners who make use of the wall or benefit therefrom
in proportion to such use and benefit.
6.5.2 Construction and Reconstruction of Party Wall. The Owner of any Townhome
Lot may construct, reconstruct (if necessary to keep same in good condition and repair or if otherwise
damaged), or extend a party wall in any direction (subject to and within the limitation of architectural
control and other limitation of this Declaration) with the right to go upon the adjoining Townhome Lot to
the extent necessary to perform such construction. Such construction shall be done expeditiously and,
unless an emergency, after reasonable prior notice to the Owner of the Townhome Lot which shares such
wall and in a manner so as to minimize to the extent reasonably possible, disruption of the use and
occupancy of such adjacent townhome Lot. Upon completion of such construction, such Owner shall
restore the adjoining Townhome Lot including all improvements thereon to as near the same condition as
prevailed before the commencement of such construction as is reasonably practicable.
6.5.3 Weatherproofing. Notwithstanding any other provision of this Section, an
Owner who, by his, her or its negligence or willful act, causes the party wall to be exposed to the
elements shall bear the whole cost of furnishing the necessary protection against such elements.
6.5.4 Right to Contribution Runs with Land. The right of any Owner to contribution
from any other Owner under this Article shall be appurtenant to the land and shall pass to such Owners'
successors in title.
6.5.5 TownhomeLo
t Certification by Adjoining Owner that No Contribution is Due.
If any Owner desires to sell his or her Townhome Lot,he may,in order to assure a prospective purchaser
that no adjoining Owner has a right of contribution as provided in this Article, request of the adjoining
Owner a certification that no right of contribution exists,whereupon it shall be the duty of each adjoining
Owner to make such certification immediately upon request and without charges;provided,however,that
where the adjoining Owner claims a right of contribution, the certification shall contain a recital of the
amount claimed.
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6.5.6 Dispute Resolution. In the event of any dispute arising concerning a party wall,
or under the provisions of this Article, each Bound Party (as defined in Section 12.2 of this Declaration)
covenants and agrees to use good faith efforts to resolve their Claims using the procedures set forth in
Section 12.4 of the Declaration.
6.6 Cost of Maintenance. All costs of the Townhome Association in maintaining Townhome
Common Area, the Designated Maintenance Items, and Townhome Buildings and in meeting its
responsibilities pursuant to this Article shall be Townhome Common Expenses.
Article VII Insurance.
7.1 Insurance Requirements under the Planned Community Act. Section 47F-3-113 of the
Planned Community requires uires certain insurance to be carried by the Townhome Association and
q
VII
provides for the distribution of insurance proceeds. Sections 7.2 through 7.5 of this Article set forth
the requirements of Section 47F-3-113 of the Planned Community Act. In the event the insurance
requirements set forth in the Planned Community Act or any portion of the Planned Community Act are
changed, amended, or deleted, the insurance requirements set forth in Sections 7.2 through 7.5 of this
Article VII shall likewise be changed, amended, or deleted to conform with the insurance provisions of
the Planned Community Act without the requirement of a formal amendment to this Declaration.
7.2 Property Insurance. The Townhome Association shall maintain, to the extent reasonably
available, property insurance on the Townhome Common Areas insuring against all risks of direct
physical loss commonly insured against including fire and extended coverage perils. The total amount of
insurance after application of any deductibles shall not be less than eighty percent (80%) of the
replacement cost of the insured property 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.
Any loss covered by this property insurance shall be adjusted with the Townhome Association, but the
insurance proceeds for that loss are payable to any insurance trustee designated for that purpose, or
otherwise to the Townhome Association, and not to any mortgagee or beneficiary under a deed of trust.
The insurance trustee or the Townhome Association shall hold any insurance proceeds in trust for
Owners and lien holders as their interests may appear. The proceeds shall be disbursed first for the repair
or restoration of the damaged property, and Owners and lien holders are not entitled to receive payment
of any portion of the proceeds, unless there is a surplus of proceeds after the property has been
completely repaired or restored,or the planned community is terminated.
7.3 Liability Insurance. The Townhome Association shall maintain, to the extent reasonably
available, liability insurance in reasonable amounts, covering all occurrences commonly insured against
for death, bodily injury, and property damage arising out of or in connection with the use,ownership, or
maintenance of the Townhome Common Areas. The liability insurance shall be for the benefit of the
Owners, occupants, the Association, the Board, the managing agent, if any, the Declarant, and their
respective officers,directors,members,managers, agents, and employees in such amounts and with such
coverage that shall be determined by the Board;provided that such liability insurance shall be for at least
One Million Dollars ($1,000,000.00)per occurrence for death, bodily injury, and property damage.
7.4 Casualty Insurance Maintained By the Townhome Association. The Townhome
Association shall procure and maintain casualty insurance upon the Townhome Lots and the
Townhome Buildings thereon for the benefit of the Townhome Association and the Owners and their
mortgagees, as their interests may appear, and provisions shall be made for the issuance for
certificates or mortgagee endorsements to the mortgagees of Owners upon request therefor by any
Owner. Each Townhome Lot shall be insured in an amount equal to one hundred percent(100%) of its
insurable replacement value of the Townhome Building thereon as determined annually by the
Townhome Association with the assistance of the insurance company providing coverage.
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7.5 Required Provisions for Townhome Property and Liability Insurance. Insurance policies
carried pursuant to Sections 7.2, 7.3 and 7.4 above shall provide that:
7.5.1 Each Owner is an insured person under the policy to the extent of the Owners'
insurable interest;
7.5.2 The insurer waives its right to subrogation under the policy against any Owner or
member of the Owners' household;
7.5.3 No act or omission by any Owner, unless acting within the scope of the Owners'
authority on behalf of the Townhome Association,will preclude recovery under the policy;and
7.5.4 If, at the time of a loss under the policy, there is other insurance in the name of
the Owner covering the same risk covered by the policy, the Townhome Association's policy provides
primary insurance.
7.6 Insurance Repairs. Any portion of the Townhome Community for which insurance is
required under Sections 7.2 and 7.3 hereinabove which is damaged or destroyed shall be repaired or
replaced promptly by the Townhome Association unless: (a) the planned community is terminated; (b)
repair or replacement would be illegal under any State or local health or safety statute or ordinance; or
(c)the Owners decide not to rebuild by an eighty percent (80%) vote. The cost of repair or replacement
in excess of insurance proceeds and reserves is a Townhome Common Expense. If any portion of the
Townhome Community is not repaired or replaced, (a) the insurance proceeds attributable to the
damaged Townhome Common Area shall be used to restore the damaged area to a condition compatible
with the remainder of the planned community; and (b)the remainder of the proceeds shall be distributed
to all the Townhome Lot Owners or lien holders, as their interests may appear, in proportion to the
common expense liabilities of all the Lots. Notwithstanding the provisions of this Section 7.6, Section
47F-2-118 (termination of the planned community) governs the distribution of the insurance proceeds if
the planned communityis terminated.
7.7 General.
7.7.1 Coverage. Such coverage shall provide protection against: loss or damage by fire
and other hazards, including extended coverage, vandalism and malicious mischief, and such other risks
as from time to time shall be reasonably required by the Townhome Association.
7.7.2 Premiums. Premiums for insurance policies purchased by the Townhome
Association shall be paid by the Townhome Association and shall be included as part of the Regular
Annual Assessment.
7.7.3 Proceeds. All insurance policies purchased by the Townhome Association shall
be for the benefit of the Townhome Association and the Owners and their mortgagees, as their interests
may appear in proportion to the Townhome Common Expense (or if applicable, Townhome Limited
Common Expense) liabilities of all (or with respect to a Townhome Limited Common Expense, the
applicable Townhome Lot(s)) of the Townhome Lots, and shall provide that all proceeds thereof shall be
payable to the Townhome Association as insurance trustee under this Declaration. The sole duty of the
Townhome Association as insurance trustee shall be to receive such proceeds as are paid and to hold the
same in trust for the purposes stated herein or stated in the Bylaws and for the benefit of the Townhome
Association,the Owners and their mortgagees in the following shares:
7.7.3.1 If an insured casualty shall occur resulting in damage to a Townhome
Lot or Townhome Lots, proceeds from insurance shall be held in undivided shares for the affected
Owners in proportion to the cost of repairing the damage insured against in said policy, which cost shall
be determined by the Townhome Association; and
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7.7.3.2 In the event a mortgagee endorsement has been issued for any
Townhome Lot, the share of the Owner of that Townhome Lot shall be held in trust for the mortgagee
and the other Owners,as their interests may appear.
7.7.4 Distribution of Insurance Proceeds. Proceeds of insurance policies received by
the Townhome Association as insurance trustee shall be distributed in the following manner: All
expenses of the insurance trustee shall be first paid or provisions made therefor; and then any remaining
proceeds shall be paid to defray the cost of the covered item.
7.7.5 Responsibility for Repair. If the proceeds of insurance are insufficient to repair
damage or destruction to any portion of the Townhome Buildings by fire or other casualty, or if such
casualty is not insured against,then the reconstruction or repair of any damaged improvements contained
within any Townhome Lot shall be accomplished promptly by the Owner(s) of such Townhome Lot or
Townhome Lots,and the extent of such repairs shall be an expense of such Owner(s).If the Owner of the
affected Townhome Lot fails to promptly accomplish such repair or reconstruction, the Townhome
Association may perform such repairs or reconstruction on his behalf, and the expense of such repair or
reconstruction maybe assessedagainst that Townhome Lot, and if not paid shall be a lien on the
Townhome Lot having all of the priorities provided in this Declaration.
7.8 Public Liability Insurance. The Townhome Association shall procure public liability
insurance with limits of liability of no less than One Million Dollars ($1,000,000.00)per occurrence and
shall include an endorsement to cover liability of the Owners as a group,to a single Owner. If an insured
casualty shall occur resulting in damage or injury to a claimant whose claim is insured against in said
policy, proceeds from the Townhome Association shall be applied as follows: all expenses of the
insurance trustee shall be first paid or provisions made therefor;and the balance held in undivided shares
for compensation for injuries suffered by each claimant whose claim is insured against in said policy, all
as determined by the Townhome Association.
7.9 Insufficient Proceeds. If the insurance proceeds received by the Townhome Association are
insufficient to reimburse, to repair and/or replace any damage or destruction to person or property, the
Board may levy a Special Assessment against the Owners to cover the deficiency.
7.10 Owners' Personal Property. The Townhome Association or Declarant shall not be liable in
any manner for the safekeeping or condition of any personal property belonging to or used by any Owner
or such Owners' family, guests, or invitees, located on or used at the Townhome Common Areas.
Further,the Townhome Association or Declarant shall not be responsible or liable for any damage or loss
to any personal property of any Owner, such Owners' family, guests or invitees located on or used at the
Townhome Common Areas. Each Owner shall be solely responsible for all personal property and for any
damage thereto or loss thereof, and shall be responsible for the purchase of, at such Owners' sole cost
and expense,any liability or other insurance for damage to or loss of such property. Each Owner shall,at
the time of acquiring possession to his/her/its Townhome Lot, and during all times of his/her/its
ownership or use shall maintain the following insurance:
7.10.1 Property insurance covering all of his/her/its personal property on the
Townhome Lot. Such insurance policy shall contain a subrogation clause waiving any right of
subrogation against the Townhome Association and all other Owners for negligence resulting in a loss to
such personal property.
7.10.2 Liability insurance in reasonable amounts covering all occurrences commonly
insured against for death, bodily injury and property damage arising out of or in connection with use,
ownership or maintenance of such Owners' Townhome Lot, including a waiver of subrogation provision
as to any rights the insurer may have against the Townhome Association or other Owner for any loss.
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4858-3088-8907,v.3

7.10.3 Coverage insuring all betterments, improvements, and contents of or on the
Owner's Townhome Lot.
The Townhome Association may request a copy of the policy of insurance required to be
maintained by each Owner as set forth above at any time or during the event of a loss.
7.11 Security. The Townhome Association may, in its sole discretion, but shall not be obligated
to, provide certain security and fire protection measures, and maintain or support certain other activities
within the Townhome Property designed to make the Townhome Property safer than it might otherwise
be. Provided, however, should the Townhome Association provide, maintain, or support any such
measures or activities, then neither the Townhome Association, the Board, Declarant, nor any successor
of Declarant shall in any way be considered insurers or guarantors of security or fire protection within
the Townhome Property, and neither the Townhome Association, Declarant nor any successor of
Declarant shall be held liable for any loss or damage by reason of failure to provide or take any security
or fire protection measures or for the ineffectiveness of any such measures undertaken. Each Owner of
any Townhome Lot and each tenant, guest, and invitee thereof acknowledges and understands that
neither the Townhome Association,the Board,Declarant nor any successor of Declarant are insurers,and
each such Owner of a Townhome Lot, and such Owners' tenants, guests, and invitees hereby assume all
risks for loss or damage to persons,property,or contents belonging to any such persons.
Article VIII Repair and Reconstruction of Townhome Association Property.
The Townhome Association shall have the authority and the duty to repair or reconstruct
Townhome Common Area or other property which the Townhome Association is obligated to insure
("Insured Property") that is damaged or destroyed unless such repair or reconstruction would be
illegal under any state or local ordinance governing health or safety, or Members representing at least
eighty percent (80%) percent of the total vote of the Townhome Association vote not to repair or
reconstruct.
Except as otherwise provided in this Section, the Board shall diligently pursue to
completion the repair or reconstruction of that part of the Insured Property damaged or destroyed. The
Townhome Association may take all necessary or appropriate action to affect such repair or
reconstruction. Such repair or reconstruction shall be in accordance with the original plans and
specifications unless other plans are approved by the Board.
The proceeds of any insurance collected shall be available to the Townhome Association for
the purpose of repair or reconstruction of Insured Property. If the proceeds of insurance are insufficient
to pay the estimated or actual cost of such repair or reconstruction, then the Board, pursuant to Article
IX may levy in advance a Special Assessment sufficient to provide funds to pay such estimated or actual
costs of repair or reconstruction. Such assessment shall be allocated and collected as provided in Article
IX. Further levies may be made in like manner if the amounts collected prove insufficient to complete
the repair or reconstruction. The insurance proceeds held by the Townhome Association and the
amounts of any such Special Assessments shall constitute a fund for the payment for costs of repair or
reconstruction after casualty. If a balance exists after payment of all costs of such repair or
reconstruction, such balance shall be distributed to the Owners of the Townhome Lots in proportion to
the contributions made by each Owner to the Townhome Association.
If a decision is made not to restore the damaged improvements and no alternative
improvements are authorized, the Townhome Association shall clear the affected property of all debris
and ruins and thereafter shall maintain such improvements in a neat and attractive, landscaped condition
consistent with the Townhome Community-Wide Standard. The cost of removal and landscaping shall
be paid for with insurance proceeds. The Townhome Association shall retain the remaining proceeds in
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4858-3088-8907,v.3

its general or other funds or shall allocate or distribute such funds as the Board determines appropriate,
provided any such distribution of insurance proceeds shall be proportionate to the Members'interests.
Article IX Townhome Association Finances
9.1 Budgeting and Allocating Townhome Common Expenses.
Until the Townhome Association first levies assessments, Declarant shall be responsible for
all Townhome Common Expenses and Townhome Limited Common Expenses. Thereafter,assessments
for Townhome Common Expenses shall be levied at least annually in accordance with this Article.
At least sixty(60)days before the beginning of each fiscal year,the Board shall prepare and
approve a budget of the estimated Townhome Common Expenses and Townhome Limited Common
Expenses for the coming year. The budget shall include any contributions to be made to a reserve fund
for repair and replacement of capital assets, taking into account the number and nature of replaceable
assets, the expected life of each asset and each asset's expected repair or replacement cost. The budget
shall 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 Townhome Lots and the amount to be generated through the levy of Regular Annual
Assessments and Special Assessments against the Townhome Lots, as authorized in Article DC. After
the Declarant Control Period terminates,the annual Regular Annual Assessments shall not be increased
by an amount greater than twenty percent (20%) of the annual Regular Annual Assessment of the
immediately preceding calendar year.
Within thirty (30) days after the Board adopts a proposed budget,the Board shall provide a
summary of the budget to the Owners together with notice of a meeting to consider ratification of such
budget, which shall state that the budget may be ratified without a quorum. The meeting to consider
ratification of the budget shall occur not less than ten(10)or more than sixty(60) days after the mailing
of the summary and notice. There shall be no requirement that a quorum be present at the meeting. The
budget shall be ratified unless at that meeting seventy-five percent (75%) of all of the Owners in the
Association reject the budget. In the event the budget is rejected,the periodic budget last ratified by the
Owners shall be continued until such time as the Owners ratify a subsequent budget proposed by the
Board.
The Association shall establish and maintain an adequate reserve fund for the periodic
maintenance, repair,and replacement of improvements to the Townhome Common Area and those other
portions of the Townhome Property which the Association may be obligated to maintain. Such reserve
fund is to be established out of regular assessments for common expense.
The Townhome Association is hereby authorized to levy Regular Annual Assessments
equally against all Townhome Lots which are subject to assessment to fund the Townhome Common
Expenses. In determining the Regular Annual Assessment rate per Townhome Lot, the Board may
consider any assessment income expected to be generated from any additional Townhome Lots
reasonably anticipated becoming subject to assessment during the fiscal year.
9.2 Special Assessments. In addition to other authorized assessments, the Townhome
Association may levy Special Assessments to cover unbudgeted expenses or expenses in excess of those
budgeted. Any such Special Assessment may be levied against the entire membership. Except as
otherwise specifically provided in this Declaration, any Special Assessment shall require the affirmative
vote or written consent of a majority of the Board and the consent of Declarant during the Declarant
Control Period. Special Assessments shall be payable in such manner and at such times as determined by
the Board and may be payable in installments extending beyond the fiscal year in which the Special
Assessment is approved. Any Townhome Lot owned by Class B member shall be exempt from payment
of any Special Assessment unless and until a permanent Certificate of Occupancy is issued for any such
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4858-3068-8907,v.3

Townhome Lot owned by Class B member, and such Townhome Lot is thereafter leased to a third party
for occupancy.
9.3 Specific Assessments.
The Board shall have the power to levy Specific Assessments against a particular
Townhome Lot as follows:
9.3.1 to cover the costs, including overhead and administrative costs, of providing
services to Townhome Lots upon request of an Owner pursuant to any menu of special services which
the Townhome Association may offer;and
9.3.2 to cover costs incurred in bringing the Townhome Lot into compliance with the
Governing Documents, or costs incurred as a consequence of the conduct of the Owner or occupants of
the Townhome Lot, their agents, contractors, employees, licensees, invitees, or guests; provided, the
Board shall give the Townhome Lot Owner prior written notice and, if required by this Declaration or the
Bylaws, an opportunity for a hearing before levying any Specific Assessment under this subsection
9.3(b);and
9.3.3 to cover Townhome Limited Common Expenses which are payable by the
Owner of and allocated to the specific Townhome Lot(s) associated with such Townhome Common
Expenses.
9.4 Authority to Assess Owners; Time of Payment.
Declarant hereby establishes and the Townhome Association is hereby authorized to levy
assessments as provided for in this Article and elsewhere in the Governing Documents. The obligation
to pay assessments shall commence as to each Townhome Lot on the first day of the month following
or entityother thanDeclarant,
the earlier of: (a) the closing on thc sale of a Townhome Lot to a person
(b)orthe lease of a Townhome Lot by the Declarant to a third party. Notwithstandingthe foregoing or
prtY g g
anything herein to the contrary, until the occurrence of 9.4 (a) or (b) above, the Class B member shall
pay an assessment equal to twenty-five percent (25%) of the Regular Annual Assessment for each
Townhome Lot it owns. The first annual Regular Annual Assessment levied on each Townhome Lot
shall be adjusted according to the number of months remaining in the fiscal year at the time assessments
commence on the Townhome Lot.
Regular Annual 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 Townhome Lot 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 provides
otherwise, the Regular Annual Assessment shall be due and payable in advance on the first day of each
fiscal year. If any Owner is delinquent in paying any assessments or other charges levied on his/her/its
Townhome Lot, the Board may require the outstanding balance on all assessments to be paid in full
immediately.
9.5 Liabilityfor Assessments. Each assessment levied bythe Townhome Association, together
g
with interest, late charges and the costs of collection thereof, including reasonable attorney's fees, shall
be the personal obligation of the Owners of each Townhome Lot against which the particular assessment
is levied(for example,a Regular Annual Assessment shall be the personal obligation of all of the Owners
of the Townhome Lots but a Specific Assessments shall be a personal obligation only of the Owners of
the Townhome Lots against which such Specific Assessment is levied). The Townhome Association
shall have the power to take whatever action is necessary, at law or in equity,to enforce this Declaration
and to collect the assessment, interest, late charges and costs. If the assessment remains unpaid for a
period of thirty(30)days after the date of mailing of the notice that it is due,the Townhome Association
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4858-3068-8907,v.3

may impose reasonable charges for late payment of assessments, not to exceed the greater of Twenty
Dollars ($20.00)per month from the date of mailing of the notice or ten percent(10%)of any assessment
installment unpaid, and the assessment,together with the late charges thereon and the costs of collection
thereof (including reasonable attorney's fees) shall constitute a lien on the delinquent Townhome Lot
when a claim of lien is filed by the Townhome Association against the Townhome Lot in the Office of
the Clerk of Superior Court of Mecklenburg County. The lien may be foreclosed by the Townhome
Association as provided in N.C.G.S. §47F-3-116.
The Board's failure 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 Regular Annual
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 Townhome Association may retroactively assess any
shortfalls in collections.
No Owner may exempt himself or herself from liability for assessments by non-use of
Townhome Common Area, abandonment of his/her/its Townhome Lot or any other means. The
obligation to pay assessments is a separate and independent covenant on the part of each Owner which
each Owner is deemed to agree to pay upon acceptance of a deed for his/her/its Townhome Lot. No
diminution or abatement of assessments or set-off shall be claimed or allowed for any alleged failure of
the Townhome Association or Board to take some action or perform some function required of it, or for
i of repairs or improvements, or from anyother
inconvenience or discomfort arisingfrom the making
g p P
action of the Board.
The sale or transfer of any Townhome Lot shall not affect the assessment lien, or relieve
such Townhome Lot from the lien for any subsequent assessments. However,the sale or transfer of any
Townhome Lot pursuant to foreclosure pursuant to a First Mortgage shall extinguish the lien as to any
installments of such assessments due prior to the Mortgagee's foreclosure, except as otherwise provided
in this Section. The subsequent Owner of the foreclosed Townhome Lot shall not be personally liable
for assessments on such Townhome Lot due prior to such acquisition of title. Such unpaid assessments
shall be deemed to be Townhome Common Expenses collectible from Owners of all Townhome Lots
subject to assessment under Section 9.4, including the subsequent Owner of the foreclosed Townhome
Lot.
9.6 Budget Deficits During Declarant Control. During the Declarant Control Period:
9.6.1 Declarant shall advance funds to the Townhome Association sufficient to satisfy
the deficit, if any, between the Townhomc Association's actual operating expenses and the sum of the
Regular Annual, Special, and Specific Assessments collected by the Townhome Association in any fiscal
year.
9.6.2 Intentionally Deleted.
9.6.3 Declarant may acquire property for, or provide services to, the Townhome
Association or the Townhome Common Area. Declarant shall designate the value of the property or the
services provided, and such amounts, at Declarant's request, shall be evidenced by a promissory note.
Failure to obtain a promissory note shall not invalidate the obligation referred to in this Section.
9.7 Statement of Account. Upon written request of any Member, Mortgagee, prospective
Mortgagee or prospective purchaser of a Townhome Lot,the Townhome Association shall issue a written
statement setting forth the amount of the unpaid assessments, if any,with respect to such Townhome Lot,
the amount of the current periodic assessment and the date on which such assessment becomes or became
due, and any credit for advanced payments or prepaid items. Such statement shall be delivered to the
requesting person personally or by certified mail, first-class postage prepaid, return receipt requested.
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4858-3068-8907,v.3

The Townhome Association may require the payment of a reasonable processing fee for issuance of such
statement.
Such statement shall bind the Townhome Association in favor of persons who rely upon it in
good faith. Provided such request is made in writing, if the request for a statement of account is not
processed within fourteen (14) days of receipt of the request, all unpaid assessments that became due
before the date of making such request shall be subordinate to the lien of a Mortgagee that acquires its
interest after requesting such statement.
9.8 Exempt Property. The following property shall be exempt from payment of Regular Annual
Assessments, Specific Assessments,and Special Assessments:
9.8.1 all Townhome Common Area;
9.8.2 any property dedicated to and accepted by any governmental authority or public
utility; and
9.8.3 any and all property owned by Declarant (except as specifically set forth in
Article IX).
9.9 Initiation Fee. Upon transfer of legal or equitable title of any Townhome Lot, from
Declarant to another Owner (other than property conveyed by Declarant to the Townhome Association)
and from one Owner to another Owner, a contribution (the "Capital Contribution") shall be made by or
on behalf of the purchaser to the Townhome Association for the working capital of the Townhome
Association in an amount equal to Four Hundred and No/100 Dollars ($400.00) per Townhome Lot.
Following the termination of the Declarant Control Period, the Board may increase the amount of the
Capital Contribution but in no event shall the Board increase the Capital Contribution to be equal to more
than twice the amount paid each month for the Annual Assessment (or if Annual Assessments are paid
annually or quarterly,the equivalent of 1/6 or Y2 of the annual or quarterly amount paid). These amounts
shall be in addition to, not in lieu of, the annual Regular Annual Assessment and shall not be considered
an advance payment of such assessments. These amounts may be increased or decreased in the sole and
exclusive discretion of the Board; provided that these amounts shall not exceed the amount of the
Regular Annual Assessment for the Townhome Lot for the then current fiscal year. These amounts shall
be deposited into the operating account of the Townhome Association for use in covering capital
maintenance, operating expenses and other expenses incurred by the Townhome Association pursuant to
this Declaration and the Bylaws. These amounts may be increased or decreased in the sole and exclusive
discretion of the Board; provided,however, that in no event shall this initial contribution equal more than
the annual Regular Annual Assessment for the year in which the transfer of title occurs. Notwithstanding
anything to the contrary herein,transfers between spouses or co-owners of any Townhome Lot,transfers
under a deed of trust, transfers to an estate as a result of death of an Owner, and reacquisition of any
Townhome Lot from an Owner by Declarant shall be exempt from this Section 9.9.
Article X Declarant Rights.
10.1 Reasonable Rights To Develop. Declarant and/or its contractors or transferees may construct
improvements to or within the Townhome Community including to the Townhome Lots. The completion
of such construction and the sale or other disposal of the Townhome Lots is essential to the establishment
and welfare of the Townhome Community. Therefore, during the Declarant Control Period, nothing in
this Declaration or the other Governing Documents shall be construed to:
10.1.1 prevent Declarant, or its contractors or subcontractors from doing whatever is
reasonably necessary or advisable in connection with the commencement or completion of the
above-described work throughout the Townhome Community;
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