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HomeMy WebLinkAboutAll in oneRECEIVE 30 2 3 NZ4 State of North Carolina: Department of Environmental Quality Division of Water Resources. IV SEWER SYSTEM PERMIT OWNERSHIP/NAME CHANGE' Division of Water Resources r��pFS�L�WRf NP1)ES INSTRUCTIONS FOR FORM: PNOCF 01-16 . This form is for ownership changes or name changes of a sewer system permit. Please note that "Permittee" 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 tl a okOhe form should not be used for permits with NC, NCG, SW or other types of non -sewer permits beginning wit Q. 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 Applicai %0 rL e s ® Submit an original completed and appropriately executed application (PNOCF 01-16). r_ ® 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(bl. ® 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 .0I06(b1. B. Existing Permit (All Applications): ® 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., 'S, 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): ❑ Per 15A NCAC 02T .01. ___ . 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/Pro erty Owners' Associations ❑ Per 15A NCAC 02T .0115(c), submit an original properly executed Operational Agreement ( FORM: HOA1. ❑ 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 0 Per 15A NCAC 02T .0115[) t, submit an original of the properly executed Operational Agreement (FORM: DEV1. 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 Bv U.S. Postal Service: By Courier/Special Delivery: 1617 MAIL SERVICE CENTER 512 N. SAMSBURY ST. RALEIGH, NORTH CAROLINA 27699-1636 SUITE 925 RALEIGH, NORTH CAROLINA 27604 TELEPHONE NUMBER: (919) 807-6300 INSTRUCTIONS FOR APPLICATION PNOCF 01-16 Page 1 of 1 State of North Carolina Department of Environmental Quality Division of Water Resources DWR SEWER SYSTEM PERMIT OWNERSHIP/NAME CHANGE DMsion of Water Resources INSTRUCTIONS FOR FORM: PNOCF 01-16 L 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: (7944) 962-2534 Fax Number Email Address: eric@denciiipartners.com II. APPLICANT INFORMATION: 1. Applicant's name: Freeland Townhome Owners' Association. Inc RECEIVED 2. Signature authority's name: Daniel Parrott per n ,,uAC 02T .0106f 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: 704) 240-7481 Fax Number (_) Email Address: danielparrog@copl2erbuilders.com 6. Representative's name: Daniel Parrott 7. Representative's title: Director 8. Representative's contact information Phone number: 704) 240-7481 Fax Number (_) _- Email Address: danielparrotto)copperbuilders.com III. PERMIT INFORMATION: 1. 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 ❑ No 4. Has the facility been certified per 15A NCAC 02T .0116? ® Yes or ❑ No FORM: PNOCF 01-16 Page 1 of 2 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. I 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: _ r7�� _ Date: 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 U.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. Signature: Date: _ Z o -2 1-( FORM: PNOCF 01-16 Page 2 of 2 STATE OF NORTH CAROLINA COUNTY OF Mecklenburg Permit No. WQ0044282 DEVELOPER'S OPERATIONAL AGREEMENT This AGREEMENT made pursuant to G.S. 143-215.1 (d1) and entered into this lsth 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: 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 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 andrepair. 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: 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 andDeclaration. 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 yearlybudget. 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 MANAGEMENT COMMISSION S. Daniel Smith Director, Division of Water Resources Builders LLC Name of DEVELOPER (Signature) Daniel Parrott, President Print Name and Title 1/18/2024 (Date) (Date) FORM: DEV 03-19 Page 2 of 2 ROYCOOQER Governor S. BISER rE��LIZ�ABETH ary RICHARD E. R.OGERS, JR.- ` Director NORTH CAROLINA Em4ronmenra/ Quality October 11, 2023 Eric Lemieux, Project Manager 216 Freeland Ln, LLC 1320 Fillmore Avenue, Apt 129 Charlotte, North Carolina 28203 Subject: Permit No. WQ0044282 Modification 216 Freeland Ln, LLC Freeland Lane Townhomes Wastewater Collection System Extension Permit Mecklenburg County Dear Mr. Lemieux: In accordance with your application received September 19, 2023, we are forwarding herewith Permit No. WQ0044282 Modification dated October 11, 2023, to the 216 Freeland Ln, LLC (Permittee) for the construction and of the subject wastewater collection system extension. This permit shall be effective from the date of issuance until rescinded and shall be subject to the conditions and limitations as specified therein. This cover letter shall be considered a part of this permit and is therefore incorporated therein by reference. This modification is to update the business entity name and update the linear footage of 6-inch gravity sewer from 300 linear feet to 154 linear feet as required when there are pipe length changes of 10% or greater. Please pay particular attention to the following conditions contained within this permit: Condition 11.1: This permit shall not be automatically transferable; a request must be made and approved. Condition 11.4: Requires that the wastewater collection facilities be properly operated and maintained in accordance with 15A NCAC 2T .0403 or any individual system -wide collection system permit issued to the Permittee. Condition 11.7: Upon completion of construction and :prior to operation of these permitted facilities, the completed Engineering Certification form with checklist attached to this permit shall be submitted with the required supporting documents to the address provided on the form. menh Carelma Dgmrta=U of Emrfrorava I CbmkY Wi iaiun of SNatrr Rr rces _ Mooresville RegWal of & ! 6fo fist Center Avenue, Swce 301 Mooresvk2e, North Carolina 2816 704.663,ib" 216 Freeland Ln, LLC Permit No. WQ0044282 Modification Permit modifications are required for any changes resulting in non-compliance with this permit, regulations, or the Minimum Design Criteria. [15A NCAC 02T.01161 It shall be responsibility of the Permittee to ensure that the as -constructed project meets the appropriate design criteria and rules. Failure to comply may result in penalties in accordance with North Carolina General Statute §143-215.6A through §143-215.6C, construction of additional or replacement wastewater collection facilities, and/or referral of the North Carolina -licensed Professional Engineer to the licensing board. If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right to request an adjudicatory hearing upon written request within 30 days following receipt of this permit. This request must be in the form of a written petition, conforming to Chapter 150B of North Carolina General Statutes, and filed with the Office of Administrative Hearings, 6714 Mail Service Center, Raleigh, NC 27699-6714. Unless such demands are made, this permit shall be final and binding. If you need additional information concerning this matter, please contact Brandy Costner at (704) 235- 2185 or via e-mail at brandy.costner nE dec.nc.gov Sincerely, Docu818nad by: E -tuw H p4*." F161F868A2084A3... for Richard E. Rogers, Jr. Director, Division of Water Resources By Andrew H. Pitner P.G., Regional Supervisor Water quality Regional Operations Section Division of Water Resources, NCDEQ cc: Cassidy Franklin — Land Design, Inc (electronic copy) Mooresville Regional Office Files (Laserfiche) Water Resources Central Files (Laserfiche) Municipal Permitting Unit (electronic copy) Page 2 of 8 WASTEWATER COLLECTION SYSTEM EXTENSION PERMIT In accordance with the provisions of Article 21 of Chapter 143, General Statutes of North Carolina as amended, and other applicable Laws, Rules, and Regulations, permission is hereby granted to the 216 Freeland Ln, LLC Mecklenburg County for the construction and operation of approximately 154 linear feet of 6-inch gravity sewer to serve 15 townhomes as part of the Freeland Park Townhomes project, and the discharge of 2,850 gallons per day of collected domestic wastewater into the Charlotte Water's existing sewerage system, pursuant to the application received September 19, 2023 and in conformity with 15A NCAC 2T; the Division's Gravity Sewer Minimum Design Criteria adopted February 12,1996 as applicable; the Division's Minimum Design Criteria for the Fast -Track Permitting of Pump Stations and Force Mains adopted June 1, 2000 as applicable; and other supporting data subsequently filed and approved by the Department of Environmental Quality and considered a part of this permit. This modification is to update the business entity name and update the linear footage of 6-inch gravity sewer from 300 linear feet to 154 linear feet as required when there are pipe length changes of 10% or greater. This permit shall be effective from the date of issuance until rescinded and shall be subject to the specified conditions and limitations contained therein. OocuBpned by: ptuft F781FB88A2084A3... for Richard E. Rogers, Jr. Director, Division of Water Resources By Andrew H. Pitner P.G., Regional Supervisor Water Quality Regional Operations Section Division of Water Resources, NCDEQ Permit Number: WQ0044282 Modification Permit Issued: October 11, 2023 Page 3 of 8 SUPPLEMENT TO PERMIT COVER SHEET 216 Freeland Ln, LLC is hereby authorized to: Construct, and then operate upon certification the aforementioned wastewater collection extension. The sewage and wastewater collected by this system shall be treated in the Charlotte Water's Irwin Creek Wastewater Treatment Facility in accordance with Permit Number NC0024945. Permitting of this project does not constitute an acceptance of any part of the project that does not meet 15A NCAC 2T; the Division's Gravity Sewer Minimum Design Criteria adopted February 12, 1996 as applicable; and the Division's Minimum Design Criteria for the Fast -Track Permitting of Pump Stations and Force Mains adopted June 1, 2000 as applicable, unless specifically mentioned herein. Division approval is based on acceptance of the certification provided by a North Carolina -licensed Professional Engineer in the application. It shall be the Permittee's responsibility to ensure that the as -constructed project meets the appropriate design criteria and rules. Construction and operation is contingent upon compliance with the Standard Conditions and any Special Conditions identified below. SPECIAL CONDITIONS 1. This permit shall become voidable unless the agreement between 216 Freeland Ln, LLC and Charlotte Water for the collection and final treatment of wastewater is in full force and effect. [15A NCAC 02T.0304(h)] 2. No flow in excess of the quantity permitted herein, 2,850 GPD, shall be made tributary to the subject sewer system until an application for permit modification for an increase in flow has been submitted to and approved by the Division. [15A NCAC 02T.0304(b)] 3. The Operational Agreement between the Permittee and the Environmental Management Commission is incorporated herein by reference and shall be a condition of this permit. Noncompliance with the terms of the Operational Agreement shall subject the Permittee to all sanctions provided by North Carolina General Statutes §143-215.6A to §143-215.6C for violation of or failure to act in accordance with the terms and conditions of this permit. [15A NCAC 02T.0115] II. STANDARD CONDITIONS 1. This permit shall not be transferable. In the event there is a desire for the wastewater collection facilities to change ownership, or there is a name change of the Permittee, a formal permit request shall be submitted to the Division accompanied by documentation from the parties involved, and other supporting materials as may be appropriate. The approval of this request shall be considered on its merits and may or may not be approved. [15A NCAC 02T.0104; G.S 143-215.1(d3)] 2. This permit shall become voidable unless the wastewater collection facilities are constructed in accordance with the conditions of this permit; 15A NCAC 2T; the Division's Gravity Sewer Minimum Design Criteria adopted February 12, 1996 as applicable; the Division's Minimum Design Criteria for the Fast -Track Permitting of Pump Stations and Force Mains adopted June 1, 2000 as applicable; and other supporting materials unless specifically mentioned herein. [15A NCAC 02T.0110] Page 4 of 8 3. This permit shall be effective only with respect to the nature and volume of wastes described in the application and other supporting data. [15A NCAC 02T .0110] 4. The wastewater collection facilities shall be properly maintained and operated at all times. The Permittee shall maintain compliance with an individual system -wide collection system permit for the operation and maintenance of these facilities as required by 15A NCAC 2T .0403. If an individual permit is not required, the following performance criteria shall be met: [15A NCAC 02T .0108(b)]: a. The sewer system shall be effectively maintained and operated at all times to prevent discharge to land or surface waters, and to prevent any contravention of groundwater standards or surface water standards. b. A map of the sewer system shall be developed and shall be actively maintained. c. An operation and maintenance plan including pump station inspection frequency, preventative maintenance schedule, spare parts inventory and overflow response has been developed and implemented. d. Pump stations that are not connected to a telemetry system shall be inspected every day (i.e. 365 days per year). Pump stations that are connected to a telemetry system shall be inspected at least once per week. e. High -priority sewer lines shall be inspected at least once per every six -months and inspections are documented. f. A general observation of the entire sewer system shall be conducted at least once per year. g. Overflows and bypasses shall be reported to the appropriate Division regional office in accordance with 15A NCAC 2B .0506(a), and public notice shall be provided as required by North Carolina General Statute §143-215.1C. h. A Grease Control Program is in place as follows: 1. For public owned collection systems, the Grease Control Program shall include at least biannual distribution of educational materials for both commercial and residential users and the legal means to require grease interceptors at existing establishments. The plan shall also include legal means for inspections of the grease interceptors, enforcement for violators and the legal means to control grease entering the system from other public and private satellite sewer systems. 2. For privately owned collection systems, the Grease Control Program shall include at least bi- annual distribution of grease education materials to users of the collection system by the permittee or its representative. 3. Grease education materials shall be distributed more often than required in Parts (1) and (2) of this Subparagraph if necessary to prevent grease -related sanitary sewer overflows. Right-of-ways and easements shall be maintained in the full easement width for personnel and equipment accessibility. J. Documentation shall be kept for Subparagraphs (a) through (i) of this Rule for a minimum of three years with exception of the map, which shall be maintained for the life of the system. S. The Permittee shall report by telephone to a water resources staff member at the Mooresville Regional Office, telephone number (704) 663-1699 as soon as possible, but in no case more than 24 hours, following the occurrence or first knowledge of the occurrence of either of the following: Page 5 of 8 a. Any process unit failure, due to known or unknown reasons, that renders the facility incapable of adequate wastewater transport, such as mechanical or electrical failures of pumps, line blockage or breakage, etc.; or b. Any SSO and/or spill over 1,000 gallons; or c. Any SSO and/or spill, regardless of volume, that reaches surface water Voice mail messages or faxed information is permissible, but this shall not be considered as the initial verbal report. Overflows and spills occurring outside normal business hours may also be reported to the Division of Emergency Management at telephone number (800) 858-0368 or (919) 733-3300. Persons reporting any of the above occurrences shall file a spill report by completing and submitting Part I of Form CS-SSO (or the most current Division approved form) within five days following first knowledge of the occurrence. This report must outline the actions taken or proposed to be taken to ensure that the problem does not recur. Part II of Form CS-SSO (or the most current Division approved form) can also be completed to show that the SSO was beyond control. [G.S. 143-215.1C(a1)] 6. Construction of the gravity sewers, pump stations, and force mains shall be scheduled so as not to interrupt service by the existing utilities nor result in an overflow or bypass discharge of wastewater to the surface waters of the State. (15A NCAC 02T.0108(b)] 7. Upon completion of construction and prior to operation of these permitted facilities, the completed Engineering Certification form with checklist attached to this permit shall be submitted with the required supporting documents to the address provided on the form. A complete certification is one where the form is fully executed and the supporting documents are provided as applicable. Any wastewater flow made tributary to the wastewater collection system extension prior to completion of this Engineer's Certification shall be considered a violation of the permit and shall subject the Permittee to appropriate enforcement actions. If the permit is issued to a private entity with an Operational Agreement, then a copy of the Articles of Incorporation, Declarations/Covenants/Restrictions, and Bylaws that have been appropriately filed with the applicable County's Register of Deeds office shall be submitted with the certification. A complete certification is one where the form is fully executed and the supporting documents are provided as applicable. Supporting documentation shall include the following: a. One copy of the project construction record drawings (plan & profile views of sewer lines & force mains) of the wastewater collection system extension. Final record drawings should be clear on the plans or on digital media (CD or DVD disk) and are defined as the design drawings that are marked up or annotated with after construction information and show required buffers, separation distances, material changes, etc. b. One copy of the supporting applicable design calculations including pipe and pump sizing, velocity, pump cycle times, and level control settings, pump station buoyancy, wet well storage, surge protection, detention time in the wet well, and force main, ability to flush low points in force mains with a pump cycle, and downstream sewer capacity analysis. If a portable power source or pump is dedicated to multiple stations, an evaluation of all the pump stations' storage capacities and the rotation schedule of the portable power source or pump, include travel timeframes, shall be provided. Page 6 of 8 c. Changes to the project that do not result in non-compliance with this permit, regulations, or the Minimum Design Criteria should be clearly identified on the record drawings, on the certification in the space provided, or in written summary form. Prior to Certification (Final or Partial): Permit modifications are required for any changes resulting in non-compliance with this permit (including pipe length of 10% or greater, increased flow, pump station design capacity design increases of 5% or greater, and increases in the number/type of connections), regulations, or the Minimum Design Criteria. Requested modifications or variances to the Minimum Design Criteria will be reviewed on a case -by -case basis and each on its own merit. Please note that variances to the Minimum Design Criteria should be requested and approved during the permitting process prior to construction. After -construction requests are discouraged by the Division and may not be approved, thus requiring replacement or repair prior to certification & activation. [15A NCAC 02T .0116] 8. Gravity sewers installed greaterthan ten percent below the minimum required slope perthe Division's Gravity Sewer Minimum Design Criteria shall not be acceptable and shall not be certified until corrected. If there is an unforeseen obstacle in the field where all viable solutions have been examined, a slope variance can be requested from the Division with firm supporting documentation. This shall be done through a permit modification with fee. Such variance requests will be evaluated on a case -by -case basis. Resolution of such request shall be evident priorto completing and submitting the construction certification. [ 15A NCAC 02T.0105(n)] 9. A copy of the construction record drawings shall be maintained on file by the Permittee for the life of the wastewater collection facilities. [15A NCAC 02T .0116] 10. Failure to abide by the conditions and limitations contained in this permit; 15A NCAC 2T, the Division's Gravity Sewer Design Criteria adopted February 12,1996 as applicable; the Division's Minimum Design Criteria for the Fast -Track Permitting of Pump Station and Force Mains adopted June 1, 2000 as applicable; and other supporting materials may subject the Permittee to an enforcement action by the Division, in accordance with North Carolina General Statutes §143-215.6A through §143-215.6C, construction of additional or replacement wastewater collection facilities, and/or referral of the North Carolina -licensed Professional Engineer to the licensing board. [15A NCAC 02T .0104; 15A NCAC 02T .0108(b-c)] 11. In the event that the wastewater collection facilities fail to perform satisfactorily, including the creation of nuisance conditions, the Permittee shall take immediate corrective action, including those as may be required by this Division, such as the construction of additional or replacement facilities. [15A NCAC 02T .0110;15A NCAC 02T .0108(b)] 12. The issuance of this permit shall not exempt the Permittee from complying with any and all statutes, rules, regulations, or ordinances that may be imposed by the Division any other Federal, State, or Local government agencies which have jurisdiction or obtaining other permits which may be required by the Division or any other Federal, State, of Local government agencies. [G.S.143-215.1(b)] Page 7 of 8 CERTIFICATION CHECKLIST To be completed by the certlfving engineer prior to operation of the permitted sewers, per 15A NCAC 02T.0116. Certifying Engineer: Cassidy Franklin, PE Certification Review Date: 11/15/2023 Project Name: Freeland Lane Townhomes WQ00 44282 Modification Project County: Mecklenburg 1) Has permittee information changed since the permit was issued (or last modified): change of mailing address, change of ownership, transfer from developer to HOA/POA, etc. ❑ Yes 0 No • If yes, please provide either a change of ownership form or new contact information. Note that transfer of permits from the developer to the HOA/POA must occur with the first certification. 2) Have the as -built drawings have been signed, sealed, and dated by an N.C. PE? ❑X Yes ❑ No 3) Final Engineering certification? ❑x Yes ❑ No • If Partial Engineering certification, provide detailed narrative including what is being certified in the current phase, what was previously certified (if applicable), and what is left to be certified. 4) Adequate information related to sewer lines: ❑X Yes ❑ No ❑ N/A • Three feet minimum cover has been provided for all sewers unless ferrous pipe was installed. • Minimum diameters for gravity sewers are 8-inches for public lines and 6-inches for private lines. • Manholes have been installed: At the end of each line, at all changes in grade, size, or alignment, at all intersections, and at distances not greater than 425 feet; minimum diameter shall be 4 feet (48-inches). 5) Adequate information related to pump stations: ❑ Yes ❑ No Q N/A • Ensure power reliability option was selected per 15A N ' 02T.0305(h). 6) Was project construction completed in accordance with all of the following: ❑X Yes ❑ No ❑ N/A • 15A NCAC 02T. Minimum Design Criteria IMDC1 for the . rnitting of Gravity Sewers [latest version), and MDC for the Permitting of Pump Stations and Force Mains (latest version)? If not, a variance approval is required in accordance with 15A NCAC 02T.0105(b), prior to certification and operation. • Contact the Central Office to discuss the variance to determine a course of action. • Applicant must submit two copies of the variance request form, plans, specifications, calculations, and any other pertinent information to the Central Office (one hard copy, one digital copy). • The central office will review the variance request, and if approvable, specific language regarding the variance will be incorporated into the permit, either via a special condition or a supplementary letter. A copy of the reissued permit with variance language or the variance letter must be maintained with the original documents. 7) Does the project contains high priority lines (15A NCAC 02T .0402(k);? ❑ Yes ❑ No • If yes, ensure that the permit already contains the necessary condition related to high priority lines 15A NCAC 02T.0403 (a)(5). If the permit does not include this language, the Fast Track reviewer will reissue the permit with the appropriate language. 8) Are Permit modifications are required for any changes resulting in non-compliance with this permit (including pipe length difference of 10% or greater, change in flow, pump station design capacity design change of 5% or greater, and change in the number/type of connections)? ❑ Yes X❑ No • If yes, a permit modification request must be submitted to the appropriate Regional Office, and a modified permit with revised certification must be issued prior to certification and operation. NC DWR— Water Quality Regional Operations Section 610 East Center Avenue, Suite 301, Mooresville, NC 28115 Mooresville Regional Offlce Phone: (704) 663-1699 FAX: (704)-633-6040 FAST TRACK SEWER ENGINEERING CERTIFICATE)N PERMITTEE: 216 Freeland Ln, LLC PERMIT #: WQ0044282 Modification PROJECT: Freeland Park Townhomes ISSUE DATE: October 11, 2023 This project shall not be considered complete nor allowed to operate in accordance with Condition 7 of this permit until the Division has received this Certification and all required supporting documentation. It should be submitted in a mannerthat documents the Division's receipt. Send the required documentation the Regional Supervisor, Water Quality Regional Operations Section at the address at the bottom. Any wastewater flow made tributary to the wastewater collection system extension prior to completion of this Certification shall be considered a violation of the permit and shall subject the Permittee to appropriate enforcement actions. The Permittee is responsible for tracking all partial certifications up until a final certification is received., A Final Certification shall be a complete set of record drawings and design calculations regardless of whether partials have been submitted. PERMITTEE's CERTIFICATION 1, the undersigned agent for the Permittee, hereby state that this project has been constructed pursuant to the applicable standards & requirements, the Professional Engineer below has provided applicable design/construction information to the Permittee, and the Permittee is prepared to operate & maintain the wastewater collection system permitted herein or portions thereof. Eric Lemieux, Manager .- Printed Name, Title Signature ENGINEER'S CERTIFICATION 11 /15/2023 Date 1, Cassidy Franklin, PE , as a duly registered Professional Engineer in the State of North Carolina, having been authorized to observe ( ] periodically, ❑ weekly, H full time) the construction of the project name and location as referenced above for the above Permittee hereby state that, to the best of my abilities, due care and diligence was used in the observation of for the construction and operation of approximately 154 linear feet of 6-inch gravity sewer; such that the construction was observed to be built within substantial compliance of this permit, 15A NCAC 02T, the Division of Water Resources' (Division) Gravity Sewer Minimum Design Criteria adopted February 12,1996 as applicable; the Division's Minimum Design Criteria for the Fast -Track Permitting; of Pump Stations and Force Mains adopted June 1, 2000 as applicable; and other supporting materials. North Carolina Professional Engineer's Seal w/signature & date: ❑x Final ❑ Partial (include description) Certification Comments/Qualifiers (attach if necessary): CARO� ,, =0 0FESS/� liL''•. 4¢ ti9 .y •. L Ss/-P OYN.F�P• NC DWR — Water Quality Regional Operations Section 610 East Center Avenue, Suite 301, Mooresville, NC 28115 Mooresville Regional Office Phone: (704) 663-1699 FAX: (704)-633-6040 STATE OF NORTH CAROLINA COUNTY OF Mecklenburg Permit No. W00044282 DEVELOPER'S OPERATIONAL AGREEMENT This AGREEMENT made pursuant to G.S. 143-215.1 (d1) and entered into this 18th day of 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 andrepair. 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 andlaw. 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 andDeclaration. 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 andinsurance. 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 yearlybudget. 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 T B __jz_.f�•tJ 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 Buf'er & Public R/W, FREELAND TOWNES AT� for the index: LOSO THIS SPECIAL WARRANTY DEED ("Deed") is made on the 34th day of November , 2023 , by and between: GRANTOR - -- ;� - GRANTEE _ 216 Freeland Ln LLC, a North Carolina limited liability company Copper Builders, LLC, a North Carolina limited liability 4� 620 E. Tremont company j Charlotte, NC 28203 1235-E East Blvd. #155 Y _ Charlotte, NC 28203 Granter and Grantee includes the above parties and their respective heirs, successors and assigns, whether singular, plural, masculine, feminine or neuter, as required by context 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 I-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 74 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, INC 28217 All or a portion of the Property was acquired by Grantor by instrument recorded in Book 37995 Pages 777, 790, & 783 NC Bar Association Real Property Section Form No. 3 0 Revised 02n-021 Printed by Agrermere with the NC Bar Association submitted electronically by "The Coley Law Firs, 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-P915 All or a portion of the Property ❑ 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: (1) 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. 16 F. eela�id Ln LLt - BY: Denciti Partners LLC a North Carolina limited liability oonwamr. {ts Manaeer BY: Eric Lemieux. Monaaer BY: ARB Investments LLC a North Carolina limited liability coninanv- By./::- STATE OF NORTH CAROLINA, COUNTY OF MECKLENBURG I, Anne D. Cole -, 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): Bric Lemieux Manatter of Denciti PMners LL as Mmu@r of 2l6 Freeland Ln LLC. and Androw Biumenthal. M_ 2 Baer off Investments, LLC, as Manager of216 Freeland Ln LLC Affix No%U Sod/Stamp ���ott i+rrii •/.,,,o•a••••. 4� s rn . ..ems T e NC Bar Association Real Psopedy Section Form Na 3 ® Revised 0=021 Printed by Agtaament with the NC Bar AS.4ocietton 0— Notary —Pub lic (Official Signature) My commission expires: Se temper ! 7 6 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 .,,�IWks ". Prepared By and Return To: Johnston, Allison & Hord, P.A. (JAP), PO Bog 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 Iand 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 IT 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 WII 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 4858-3068-8907, 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. "Plat" 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 Mecklenburg County 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 easement 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. 33158.4017 4858-3088-B907, 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 m6an 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 are incorporated herein by reference and a copy attached as Exhibit C. Article HT 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 oses. 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. 4 33158.4017 4858-3088-8907, v. 3 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 (1) 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 IV Use and Occupancy of Townhome Lots and Townhome Common Areas. 4.1 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 Occupangy of Townhome Lots. Use and occupancy of all Townhome Lots shall be restricted as follows: 33158.4017 4858-3068-8907, v. 3 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 Stqgge of Buildin 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 Parkik,�_ and Vehicle Storag . 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 Under round 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 -today 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. 6 33158.4017 48M3068-8907, v. 3 4.4.1 _ Declarant's Authori r� , 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 by mail to all Members concerning any such 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 Inteni'onall•, omitted. 4.7 Notice to Purchasers and Wort z:, ees. 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 larant or the Townhome Association Fn �v have changed the initial Rules and ftgglations since the recordine of this Declaration. The Townhome Association shall provide a copy 7 33158.4017 4858-3068-8807, v. 3 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: e i t 1" 7 � �n m_ _ Buildings �_ t � � L,.11 a _t J. I. I I RC IILUMIIIULLL U681It UI krI) L V WAhVille Buildings I 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. 8 33158.4017 4858-3068-8907, v. 3 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 Townhome 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 9 33158.4017 48W3068-8907, v. 3 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 10 33158.4017 4858-3068-8907, v. 3 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 terns 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 Liabili_ � . 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) thax 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. 11 33158.4017 4858-3068-8907, v. 3 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 terns 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. 12 33158.4017 4858-3088-8907, v. 3 Article VI Maintenance and Repair 6.1 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 Responsibilit' . 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' Responsibilit•. 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 party'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 13 33158.4017 4858-3068-8907, v. 3 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 Partv 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 party wall shall be shared by the Owners who make use of the wall or benefit therefrom in proportion to such use and benefit. 6.5.2 Construction and Reconstruction of Pam 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 twnhome 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 Certification by Adjoining To"mhome Lot 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. 14 33158.4017 4858-306MM7, v. 3 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 Act requires certain insurance to be carried by the Townhome Association and provides for the distribution of insurance proceeds. Sections 7.2 through 7.5 of this Article VII 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 P "Lenv 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 (801/o) 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 CaslWty Insurance Maintained B% 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. 15 33158.4017 4858-3088-8807, v. 3 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 community is 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 16 33155.4017 48W3068-8807, v. 3 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 Resoonsibili<< for r 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 may be assessed against 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 Iiable 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. 17 33158.4017 4858-3068-8907, 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 Securi . 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 inei%ctiveness 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 (801/o) 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 18 33158.4017 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 Budgetim 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 assets 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 IX. 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 (751/o) 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 expectedto be generated from any additional Townhome Lots reasonably anticipated becoming subject to assessment during the fiscal year. 9.2 Smcial 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 19 33158.4017 4858-3088-8907, 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 Pa■inent. 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 the earlier of: (a) the closing on the sale of a Townhome Lot to a person or entity other than Declarant, or (b) the lease of a Townhome Lot by the Declarant to a third party. Notwithstanding the foregoing or 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 Liability for Assessments. Each assessment levied by the Townhome Association, together 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 20 33158.4017 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 inconvenience or discomfort arising from the making of repairs or improvements, or from any other 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 Townhome 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 Suitement 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. 21 33158,4017 ' 4858-3088-8907, 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 %Z 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; 22 33158.4017 48W3088-8907, v. 3 10.1.2 prevent Declarant or its representatives from erecting, constructing, and maintaining anywhere in the Townhome Community such structures as reasonably may be necessary for the conduct of its business of completing the work, establishing Freeland Townhomes as a residential Townhome Community and disposing of the Townhome Lots by sale, lease, or otherwise; 10.1.3 prevent Declarant from maintaining such signs and conducting such activities in any part of the Townhome Community owned by Declarant or the Association as Declarant may deem to be reasonably necessary for the sale, lease, or disposition of Townhome Lots; or 10.1.4 prevent Declarant from placing and utilizing on Townhome Lots or other property which it owns one or more mobile trailers or temporary structures as sales offices or for construction activities. 10.1.5 Prevent Declarant from subjecting all or any portion of the property described in Exhibit A-1 to the terns, covenants, conditions and restrictions of this Declaration Nothing in this Section shall give Declarant the right to damage any Townhome Lot or other property not owned by Declarant. 10.2 Marketing and Sales Activities. During the Declarant Control Period, Declarant may construct, relocate, maintain and carry on upon any Townhome Lot Declarant owns or upon portions of the Townhome Common Area, such facilities and activities as may be reasonably required, convenient or incidental to the construction, marketing or sale of Townhome Lots, as determined in Declarant's sole opinion. Such facilities and activities may include, without limitation, business offices, signs, model homes, and sales offices. There shall be no limit on the number or size of such facilities as it constructs. Declarant shall have easements for access to and use of such facilities. Declarant reserves the right to remove any personal property used in connection with its activities on the Townhome Common Area upon termination of its rights under this Section. 10.3 Construction of Improvements. During the Declarant Control Period, Declarant and its employees, agents and designees shall have a right of access and use and an easement over and upon all of the Townhome Common Area for the purpose of making, constructing and installing such improvements to the Townhome Common Area as it deems appropriate in its sole discretion. 10.4 Right to Approve Additional Covenants. During the Declarant Control Period, no person or entity shall record any declaration of covenants, conditions and restrictions, or declaration of condominium or similar instrument affecting any portion of the Townhome Community without Declarant's prior written approval. Any instrument recorded without such consent shall be void and of no force and effect unless Declarant subsequently consents in a Recorded Document. 10.5 Riglit to Transfer or AssiLn Declarant Rights. Any or all of Declarant's rights or obligations set forth in this Declaration or the Bylaws may be transferred in whole or in part to other persons; however, the transfer shall not reduce an obligation or enlarge a right beyond that which Declarant has under this Declaration or the Bylaws. No such transfer or assignment shall be effective unless evidenced by a Recorded Document. The foregoing sentence shall not preclude Declarant from permitting other persons to exercise, on a one-time or limited basis, any right reserved to Declarant in this Declaration where Declarant does not intend to transfer such right in its entirety. In such case it shall not be necessary to record any written assignment unless necessary to evidence Declarant's consent to such exercise. 10.6 Exclusive Rights to Use Name of Development. During the Declarant Control Period, no person or entity shall use the name "Freeland Townhomes" or any derivative of such name in any printed or promotional material without Declarant's prior written consent. However, Owners may use the name "Freeland Townhomes" in printed or promotional matter where such term is used solely to specify that 23 33158.4017 4858-3068-8907, v. 3 particular property is located within the community and the Townhome Association shall be entitled to use the words "Freeland Townhomes" in its name. 10.7 Right to Approve Chapoes in Townhome Communin Standards. During the Declarant Control Period, no amendment to or modification of any Rules and Regulations shall be effective without Declarant's prior written approval. 10.8 Easement to Inspect and Right to Correct. 10.8.1 Easement. Declarant reserves for itself and such other persons as it may designate perpetual non-exclusive easements throughout the Townhome Community to the extent reasonably necessary for the purposes of accessing, inspecting, testing, redesigning or correcting any portion of the Townhome Community including Townhome Lots and Townhome Common Areas. Declarant shall have the right to redesign or correct any part of the Townhome Community, including Townhome Lots owned by Declarant and Townhome Common Areas. 10.8.2 Right of Entr,X. Entry onto a Townhome Lot shall be after reasonable notice, except in an emergency. Entry into a structure on a Townhome Lot shall be only after Declarant notifies the Townhome Lot's Owner and agrees with the Owner regarding a reasonable time to enter the structures on such Townhome Lot to perform such activities. 10.8.3 Damage. Declarant shall promptly repair any damage to a Townhome Lot or the Townhome Common Area resulting from the exercise of the easement or right of entry described in subsections 10.8.1 and 10.8.2 of this Section at its own expense. The exercise of these easements shall not unreasonably interfere with the use of any Townhome Lot, and entry onto any Townhome Lot shall be made only after reasonable notice to the Owner or occupant. 10.9 Api_ iintment or Removal of Members of the Board and officers. During the Declarant Control Period, Declarant shall have the right to appoint or remove any member of the Board or officer of the Townhome Association. 10.10 Amendment to Declaration. During the Declarant Control Period, Declarant shall have the right to amend or rescind and restate this Declaration by a Recorded Document, without approval or joinder of the Townhome Association or any other Party. 10.11 Review of Design and Construction. During the Declarant Control Period, Declarant shall have the right to control the design, quality, installation and construction of improvements within the Townhome Community as provided in Article V above. Article Xi Easements 11.1 Qpners'_Easements of Enjovment. Except as limited by this Declaration and the Planned Community Act, every Owner shall have a right of use and enjoyment in and to the Townhome Common Area which shall be appurtenant to and shall pass with the title to every Townhome Lot. Except as limited by this Declaration and the Planned Community Act, any Owner may delegate his or her rights of use and enjoyment of the Townhome Common Area to the members of his or her family, tenants, contract purchasers who reside on the Townhome Property, or guests. 112 Emergency _ Escahe and Rescue Easement. Notwithstanding anything in this Declaration to the contrary, no structures, sheds, fences, obstructions or barriers of any kind shall be placed in the Emergency Escape and Rescue Easement Area that would block the flow of ingress and egress, to the extent required by the North Carolina State Building Code: Residential Code and any other applicable laws. Declarant hereby grants and creates an easement over, upon and through the Emergency Escape and Rescue Easement Area for the purpose of providing access to the Townhome Lots for police, sheriff, fire, ambulance and other emergency services. 24 33153.4017 4858-3088-8907, v. 3 11.3 Walks and Utilities. All areas of the Townhome Community shall be subject to such easements for walkways, water lines, sanitary sewers, storm drainage facilities and for the maintenance of and general access to all water and sewer facilities, stonnwater control structures, gas lines, telephone' and electric power lines, television antenna lines, other utilities, and related facilities, ingress, egress and regress and otherwise as shall be established by Declarant or by its predecessor in title, prior to the conveyance of the Townhome Property designated to be the Townhome Common Area to the Townhome Association; and the Townhome Association shall have the power and authority to grant and establish further easements upon, over, under, and across the Townhome Common Area. Declarant hereby grants and creates an easement for water, sewer, electricity, gas, telecommunications and other utilities over, upon and through the Townhome Property (but not any Townhome Building) for the purpose of providing such utility services to each Townhome Lot in the location established and constructed by Declarant for the benefit of each Owner, Occupant, the Townhome Association and any contractor, subcontractor, materialmen, engineer or agent engaged by the Townhome Association in connection with the Townhome Association performing its maintenance, repair and replacement obligations with respect to such facilities. 11.4 Encroachments and Declarants Easement to Correct Drainage. All Townhome Lots and the Townhome Common Area shall be subject to easements for the encroachment of initial improvements constructed on any Townhome Lots or Townhome Common Area to the extent that such initial improvements actually encroach, including, without limitation, such items as overhanging eaves, gutters, downspouts, bay windows, steps and walls. For a period of twenty-five (25) years from the date of conveyance of the first Townhome Lot, Declarant reserves a blanket easement and right-of-way on, over, and under the Townhome Property to maintain and to correct drainage or surface water in order to maintain reasonable standards of health, safety and appearance. Such rights expressly include the right to cut any trees, bushes or shrubbery, make any gradings of the soil or take any other similar action reasonably necessary. After such action has been completed, Declarant shall restore the affected Townhome Property to its original condition to the extent practicable. Declarant shall give reasonable notice of intent to take such action to all affected Owners. These rights and reservations are assignable by Declarant. 11.5 Easement for En-,i-� Features. There is hereby reserved to Declarant and the Townhome Association an easement for ingress, egress, installation, construction landscaping and maintenance of entry features and similar streetscapes for the Townhome Community, over and upon each Townhome Lot and all Townhome Common Area. The easement and right herein reserved shall include the right to cut, remove and plant trees, shrubbery, flowers and other vegetation around such entry features and the right to grade the land under and around such entry features. 11.6 Construction and Sale Period Easement. Notwithstanding any provisions contained in the Declaration, the Bylaws, the Articles of Incorporation, use restrictions, rules and regulations, design guidelines, and any amendments thereto, until Declarant's right unilaterally to subject property to this Declaration terminates and thereafter so long as Declarant owns any property in the Townhome Community for development or sale, Declarant reserves an easement across the Townhome Community for Declarant and any builder or developer approved by Declarant to maintain and carry on development, construction, and sales activities related to property within or near the Townhome Community, upon such portion of the Townhome Community as Declarant may reasonably deem necessary. This reserved easement shall include an easement for such facilities and activities which, in the sole opinion of Declarant, may be required, convenient or incidental to the development, construction and sales activities related to property within or near the Townhome Community. This easement shall include, without limitation: (i) the right of access, ingress and egress for vehicular and pedestrian traffic and construction activities over, under, on or in any portion of the Townhome Community as well as any Townhome Lot in the Townhome Community; (ii) the right to tie into any portion of the Townhome Community with 25 33158.4017 485"06"907, v. 3 driveways, parking areas and walkways; (iii) the right to tie into or otherwise connect and use (without a tap -on or any other fee for doing so), replace, relocate, maintain and repair any device which provides utility or similar services; (iv) the right (but not the obligation) to construct recreational facilities on the Townhome Common Area; (v) the right to carry on sales and promotional activities in the Townhome Community; (vi) the right to place direction and marketing signs on any portion of the Townhome Community, including any Townhome Lot or Townhome Common Area; and (vii) the right to construct and operate business offices, signs, construction trailers, model residences, and sales offices incidental to the construction, development and sales activities. Further, Declarant and any builder or developer authorized by Declarant, may use residences, offices or other buildings owned or leased by Declarant or such builder or developer as model residences and sales offices, and may also use recreational facilities available for use by the Townhome Community as a sales office or for marketing purposes without charge. Rights exercised pursuant to such reserved easement shall be exercised with a minimum of interference to the quiet enjoyment of affected property, and reasonable steps shall be taken to protect such property from damage. Any damage shall be repaired by the person causing the damage at its sole expense. This section shall not be amended without Declarant's express written consent until Declarant's rights hereunder have terminated as provided in this Declaration. 11.7 Intentionally Deleted, 11.8 Intentionally Deleted. 11.9 Easement to Government Entities. An easement is hereby established for municipal, State or public utilities serving the area, their agents and employees, over all Townhome Common Area hereby or hereafter established for setting, removing and reading utility meters, maintaining and replacing utility connections, and acting with other purposes consistent with the public safety and welfare, including, without limitation, garbage collection, mail delivery, police and fire protection. 11.10 Easement and Right of Entry for Repair. Maintenance and Reconstruction. If any dwelling is located closer than four (4) feet from its lot line, the Owner thereof shall have a perpetual access easement over the adjoining lot to the extent reasonably necessary to perform repair, maintenance or reconstruction of his or her home. Such repair, maintenance or reconstruction shall be done expeditiously and, upon completion of the work, the Owner shall restore the adjoining Townhome Lot to as near the same condition as that which existed prior to the commencement of the work as is reasonably practicable. 11.11 Pedestrian Easements. To the extent that they are not maintained by the Owners of those portions of the Townhome Property on which they are located, the Townhome Association shall maintain all pedestrian access easements and sidewalks required to be located on any portion of the Townhome Property pursuant to subdivision plan approvals, zoning approvals and/or pursuant to plats of the Townhome Property recorded in the register of deeds of the county in which the Townhome Property is located, and/or pursuant to written maintenance agreements with the municipal or county authorities and any other applicable Recorded Document. Article XII Dispute Resolution and Limitation on Litigation. 12.1 Consensus for Townhome Association Liti- ition. Except as provided in this Section, the Townhome Association shall not commence a judicial or administrative proceeding without the approval of Members representing at least sixty-seven (67%) percent of the total votes of the Townhome Association. This Section shall not apply, however, to (a) actions by the Townhome Association to enforce the Governing Documents (including, without limitation, the imposition of fines, the suspension of privileges or services or the foreclosure of liens); (b) the collection of assessments; (c) proceedings involving challenges to ad valorem taxation; or (d) counterclaims brought by the Townhome Association in proceedings instituted against it. This Section shall not be amended unless such amendment is 26 33158.4017 4858-305"907, v, 3 approved by the percentage of votes, and pursuant to the same procedures, necessary to institute proceedings as provided above. Prior to the Townhome Association or any Member commencing any judicial or administrative proceeding to which Declarant is a parry and which arises out of an alleged defect in the Townhome Community or any improvement constructed thereon, Declarant shall have the right to meet in good faith and discuss the subject of the proceeding with the Members or the particular Member, and to access, inspect, correct the condition of or redesign any portion of the Townhome Community, including any improvement as to which a defect is alleged. In addition, the Townhome Association or the Member shall notify the builder who constructed such improvements prior to retaining any other expert witness or for other litigation purposes. 12.2 Alternative .Method for Resolving Disputes. Declarant, the Townhome Association, its officers, directors and committee members, all Persons subject to this Declaration, any builder within the Townhome Community, and any Person not otherwise subject to the Declaration who agrees to submit to this Article (individually referred to as a "Bound Party" and collectively, "Bound Parties") agree to encourage the amicable resolution of disputes involving the Townhome Community without the emotional and financial costs of litigation. Accordingly, each Bound Party covenants and agrees to use good faith efforts to resolve those claims, grievances, or disputes described in Section 12.3 ("Claims") using the procedures set forth in Section 12.4 hereof. 12.3 Claims. Unless specifically exempted below, all Claims arising out of or relating to the interpretation, application, or enforcement of the Governing Documents, or the rights, obligations, and duties of any Bound Party under the Governing Documents or relating to the design or construction of improvements in the Townhome Community (other than matters of aesthetic judgment under Article V, which shall not be subject to review) shall be subject to the provisions of Section 12.4. Notwithstanding the above, unless all parties thereto otherwise agree, the following shall not be Claims and shall not be subject to the provisions of Section 12.4: 12.3.1 any suit by Declarant and/or Townhome Association against any Bound Party to enforce the provisions of this Declaration; 12.3.2 any suit by Declarant, Townhome Association or any Owner to obtain a temporary restraining order (or equivalent emergency equitable relief) and such other ancillary relief as the court may deem necessary in order to maintain the status quo and preserve the party's ability to enforce the provisions of this Declaration; 12.3.3 any suit between Owners, which does not include Declarant or the Townhome Association as a party, if such suit asserts a Claim which would constitute a cause of action independent of the Governing Documents; 12.3.4 any suit in which any indispensable party is not a Bound Party; and 12.3.5 any suit as to which any applicable statute of limitations would expire within one hundred eighty (180) days of giving the Notice required by Section 12.4.1 unless the party or parties against whom the Claim is made agree to toll the statute of limitations as to such Claim for such period as may reasonably be necessary to comply with this Article. With the consent of all parties thereto, any of the above may be submitted to the alternative dispute resolution procedures set forth in Section 12.4. 27 33158.4017 4858.3068-8907, v. 3 12.4 _Mandator• Procedures. 12.4.1 Notice. Any Bound Party having a Claim ("Claimant") against any other Bound Party ("Respondent") (collectively, the "Parties") shall notify each Respondent in writing (the "Notice"), stating plainly and concisely: 12.4.1.1 the nature of the Claim, including the Persons involved and Respondent's role in the Claim; 12.4.1.2 the legal basis of the Claim (i.e., the specific authority out of which the Claim arises); 12.4.1.3 Claimant's proposed remedy; and 12.4.1.4 that Claimant will meet with Respondent to discuss in good faith ways to resolve the Claim. 12.4.2 Negotiation and Mediation. 12.4.2.1 The Parties shall make every reasonable effort to meet in person and confer for the purpose of resolving the Claim by good faith negotiation, If requested in writing, accompanied by a copy of the Notice, the Board may appoint a representative to assist the Parties in negotiation. 12.4.2.2 If the Parties do not resolve the Claim within thirty (30) days of the date of the Notice (or within such other period as may be agreed upon by the Parties) ("Termination of Negotiations"), Claimant shall have thirty (30) additional days to submit the Claim to mediation under an independent agency providing dispute resolution services in Mecklenburg County or surrounding areas. 12.4.2.3 If Claimant does not submit the Claim to mediation within such time, or does not appear for the mediation, Claimant shall be deemed to have waived the Claim, and Respondent shall be released and discharged from any and all liability to Claimant on account of such Claim; however, nothing herein shall release or discharge Respondent from any liability to any Person other than the Claimant. 12.4.2.4 Any settlement of the Claim through mediation shall be documented in writing by the mediator and signed by the Parties. If the Parties do not settle the Claim within thirty (30) days after submission of the matter to the mediation, or within such time as determined by the mediator, the mediator shall issue a notice of termination of the mediation proceedings ("Termination of Mediation"). The Termination of Mediation notice shall set forth that the Parties are at an impasse and the date that mediation was terminated. 12.4.2.5 Within five (5) days after the Termination of Mediation, the Claimant shall make a final written demand ("Settlement Demand") to the Respondent, and the Respondent shall make a final written settlement offer ("Settlement Offer") to the Claimant. If the Claimant fails to make a Settlement Demand, Claimants' original Notice shall constitute the Settlement Demand. If the Respondent fails to make a Settlement Offer, Respondent shall be deemed to have made a "zero" or "take nothing" Settlement Offer. 12.4.3 Final and BindinL1. Arbitration. 12.4.3.1 If the Parties do not agree in writing to a settlement of the Claim within fifteen (15) days after the Termination of Mediation, the Claimant shall have fifteen (15) additional days to submit the Claim to arbitration in accordance with the rules of arbitration promulgated or observed by the agency providing the arbitrator. If not timely submitted to arbitration or if the Claimant fails to appear 28 33158.4017 48W3088-8907, v. 3 for the arbitration proceeding, the Claim shall be deemed abandoned, and Respondent shall be released and discharged from any and all liability to Claimant arising out of such Claim; however, nothing herein shall release or discharge Respondent from any liability to parties other than Claimant. 12.4.3.2 This subsection 12.4.3.2. is an agreement to arbitrate and is specifically enforceable under any applicable arbitration laws of the State of North Carolina. The arbitration award ("Award") shall be final and binding, and judgment may be entered upon it in any court of competent jurisdiction to the fullest extent permitted under the laws of North Carolina. 12.5 Allocation of Costs of Resolving Claims. 12.5.1 Subject to Section 12.5.2, each Party shall bear its own costs, including attorneys' fees, and each Parry shall share equally all charges rendered by the mediator(s) and all filing fees and costs of conducting the arbitration proceeding ("Post Mediation Costs"). 12.5.2 Any Award that is equal to or more favorable to Claimant than Claimant's Settlement Demand shall add Claimant's Post Mediation Costs, including reasonable attorney's fees, to the Award, such costs to be borne equally by all Respondents. Any Award that is equal to or less favorable to Claimant than any Respondents' Settlement Offer shall award such Respondent its Post Mediation Costs, including reasonable attorney's fees. 12.6 Enforcement of Resolution. If the Parties agree to a resolution of any Claim through negotiation or mediation in accordance with Section 12.4 and any Party thereafter fails to abide by the terms of such agreement, or if any Party fails to comply with an Award, then any other Party may file suit or initiate administrative proceedings to enforce such agreement without the need to again comply with the procedures set forth in Section 12.4. In such event, the Party taking action to enforce the agreement shall be entitled to recover from the non -complying Party (or if more than one non -complying Party, from all such Parties pro rata) all costs incurred in enforcing such agreement, including, without limitation, attomeys' fees and court costs. Article XIII Mortgagee Provisions. The following provisions are for the benefit of holders, insurers, and guarantors of First Mortgages on Townhome Lots in the Townhome Community. The provisions of this Article apply to both this Declaration and to the Bylaws, notwithstanding any other provisions contained therein. 13.1 Notices of Action. An institutional holder, insurer, or guarantor of a First Mortgage which provides a written request ("Eligible Holder Request") to the Townhome Association, such request to state the name and address of such holder, insurer, or guarantor and the street address of the Townhome Lot to which its Mortgage relates, thereby becoming an ("Eligible Holder"), shall be entitled to timely written notice of: 13.1.1 any condemnation loss or any casualty loss which affects a material portion of the Townhome Community or which affects any Townhome Lot on which there is a First Mortgage held, insured, or guaranteed by such Eligible Holder; 13.1.2 any delinquency in the payment of assessments or charges owed by a Townhome Lot subject to the Mortgage or such Eligible Holder, where such delinquency has continued for a period of sixty (60) days, or any other violation of the Governing Documents relating to such Townhome Lot or the Owner or occupant which is not cured within sixty (60) days of receiving notice of such violation; 13.1.3 any lapse, cancellation or material modification of any insurance policy the Townhome Association maintains; or 13.1.4 any proposed action which would require the consent of a specified percentage of Eligible Holders. 29 33158.4017 4858-30SM907, v. 3 13.2 No Priority. No provision of this Declaration or the Bylaws gives or shall be construed as giving any Owner or other parry priority over any rights of the First Mortgagee of any Townhome Lot in the case of distribution to such Owner of insurance proceeds or condemnation awards for losses to or a taking of the Townhome Common Area. 13.3 Notice to Townhome Association. Upon request, each Owner shall be obligated to furnish to the Townhome Association the name and address of the holder of any Mortgage encumbering such Owners' Townhome Lot. 13.4 Failure of Mortaagee To Respond. Any Mortgagee who receives a written request from the Board to respond to or consent to any action shall be- deemed to have approved such action if the Townhome Association does not receive a written response from the Mortgagee within thirty (30) days after the date of the Townhome Association's request, provided such request is delivered to the Mortgagee by certified or registered mail, return receipt requested to the address of Mortgagee provided to the Townhome Association in the Eligible Holder Request. 13,5 Construction of Article XIU. Nothing contained in this Article shall be construed to reduce the percentage vote that must otherwise be obtained under this Declaration, the Bylaws, or the Planned Community Act for any of the acts set out in this Article. Article XIV Changes in Townhome Common Area 14.1 Condemnation. If a Townhome Lot or portion thereof shall be taken by eminent domain, any compensation related to and the Owners' interests in the Townhome Common Area shall be appropriately allocated among all other Owners. If any part of the Townhome Common Area shall be taken (or conveyed in lieu of and under threat of condemnation by the Board acting on the written direction of Members representing at least sixty-seven (67%) percent of the total votes in the Townhome Association) by any authority having the power of condemnation or eminent domain, each Owner shall be entitled to written notice of such taking or conveyance prior to disbursement of any condemnation award or proceeds from such conveyance. Such award or proceeds shall be payable to the Townhome Association to be disbursed as follows: 14.1.1 If the taking or conveyance involves a portion of the Townhome Common Area on which improvements have been constructed, the Townhome Association shall restore or replace such improvements on the remaining Townhome Common Area to the extent available, unless within sixty (60) days after such taking Declarant, during the Declarant Control Period, and Members representing at least eighty (80%) percent of the total votes in the Townhome Association shall otherwise agree. Any such construction shall be in accordance with plans approved by the Board. The provisions of Article IX regarding funds for restoring improvements shall apply. 14.1.2 If the taking or conveyance does not involve any improvements on the Townhome Common Area, if a decision is made not to repair or restore, or if net funds remain after any such restoration or replacement is complete, then such award or net fimds shall be disbursed to the Townhome Association and used for such purposes as the Board shall determine. 14.2 Transfer, Partition, or Encumbrance of Townhome Common Area. 14.2.1 Except as this Declaration otherwise specifically provides, the Townhome Common Area shall not be judicially partitioned or subdivided into Townhome Lots, nor shall the ownership of the Townhome Common Area be otherwise divided or encumbered in any manner after conveyance to the Townhome Association, except upon the approval of Members representing at least eighty (80%) percent of the total votes in the Townhome Association, including a majority of the votes held by Members other than Declarant, and the consent of Declarant if during the Declarant Control Period. 30 33158.4017 4858-3068-8907, v. 3 14.2.2 The Townhome Association shall have the authority, subject to approval of Members representing a majority of the total votes in the Townhome Association, including a majority of the votes held by Members other than Declarant, and the consent of Declarant, if during the Declarant Control Period, to transfer portions of the Townhome Common Area and improvements thereon to appropriate governmental entities or tax-exempt organizations for the maintenance, operation, and preservation thereof, provided, any such transfer shall not relieve such Townhome Common Area from the rights and benefits of the Townhome Association and the Members as provided in this Declaration and shall otherwise be subject to the provisions of this Declaration. Article XV Fines and Suspension of Privileges or Services. Notwithstanding any other provision herein, the Board may impose fines on an Owner and/or suspend an Owners' right and privilege to use certain Townhome Common Area for failure of that Owner, his/her/its lessees, agents or invitees, to abide by this Declaration, the Rules and Regulations or the administrative rules and regulations governing Townhome Common Area. The procedure for the Board to do so shall be as set forth in the Bylaws. The Board shall not impose any such fine or suspension unless and until the Owner charged has been given notice of the charge, opportunity to be heard by and present evidence to the Board and notice of the Board's decision. Suspensions may be imposed for a reasonable period of time and/or until a violation or delinquency is cured. Article XVI Miscellaneous 16.1 Parties Bound. All persons and entities acquiring any interest in any of the Townhome Lots, including but not limited to lessees, shall be bound by the provisions of this Declaration. All guests and invitees of such persons and entities, and any other occupants of any of the Townhome Lots, shall likewise be bound. 16.2 Duration. The provisions of this Declaration shall nun with and bind the Property perpetually, unless and until the Townhome Community is terminated pursuant to N.C.G.S. Section 47F- 2-118. 16.3 Amendment. Except as provided in Section 10.10 above, this Declaration may be amended only by a written instrument executed by the Townhome Association and authorized by the affirmative vote of at least sixty-seven percent (67%) of all Townhome Lots, cast in person or by proxy at a meeting held in accordance with the Bylaws of the Townhome Association. Any amendment must be recorded to be effective. 16.4 Enforcement. Subject to the provisions of Article XII above, Declarant, any Owner and/or the Townhome Association shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants and obligations imposed by this Declaration. Subject to the provisions of Article XII above, Declarant, the Townhome Association or any Owner may bring any action necessary to enjoin any violation or breach of the provisions of this Declaration. Declarant, the Townhome Association and/or any Owner shall be entitled to recover reasonable attorney's fees incurred in bringing and prosecuting such action from the breaching or violating Owner(s). 16.5 Failure to Enforce Not a Waiver. The failure to enforce any right, reservation, covenant or restriction contained in this Declaration, however long continued, shall not be deemed a waiver of the right to do so thereafter. 16.6 Assignment by Declarant. Any or all of the rights, powers, easements, functions and obligations reserved or given to Declarant in this Declaration may be assigned to the Townhome Association, and the Townhome Association shall accept and assume responsibility for any or all such rights, powers, easements, functions and obligations when requested by Declarant. Any such assignments or transfer shall be made by a Recorded Document, executed by both Declarant and the Townhome 31 33158.4017 4858-306"907, v. 3 Association, and the Townhome Association shall thereupon have the same rights and powers and be subject to the same obligations and duties as are herein given to and assumed by Declarant. Declarant, but not the Townhome Association, shall thereupon be released from such obligations and duties. 16.7 Notice of Conveyance. In the event an Owner sells such Owner's Townhome Lot or title to a Townhome Lot is otherwise conveyed, the Owner shall give to the Townhome Association, in writing, prior to the effective date of such conveyance, the name of the purchaser or grantee of the Townhome Lot and such other information as the Townhome Association may reasonably require. Upon acquisition of a Townhome Lot, each new Owner shall give the Townhome Association, in writing, the name and mailing address of the Owner and such other information as the board may reasonably require. 16.8 Variances. Notwithstanding anything to the contrary contained herein, Declarant and/or the Townhome Association or its designee shall be authorized to grant individual variances from any of the provisions of this Declaration, the Bylaws and any rule, regulation or use restriction promulgated pursuant thereto if Declarant or the Townhome Association determine that waiver of application or enforcement of the provision in a particular case would not be inconsistent with the overall scheme of development for the Townhome Community. 16.9 Severabilit.. Invalidation of any one of these covenants or restrictions by judgment or court order shall not affect any of the other provisions of this Declaration, which shall remain in full force and effect. 16.10 Captions. The captions herein are inserted only as a matter of convenience and for reference, and shall not be construed to define, limit or describe the scope of any provision of this Declaration. 16.11 Law Controllin¢. This Declaration shall be construed and governed pursuant to the laws of North Carolina. 16.12 References to Statutes. All references herein to any statutory provision shall be construed to include and apply to any subsequent amendments to or replacements of such provision. 16.13 Conflicts. In the event of any conflict between this Declaration and other Governing Documents, the terms of this Declaration shall control. Article WII Expansion of the Townhome Community 17.1 E_ ,)ansion b% Declarant. Until all property described in Exhibit A-1 has been subjected to this Declaration or twenty (20) years after the Recording of this Declaration, whichever is earlier, Declarant reserves the right, but not the obligation, to subject unilaterally to the provisions of this Declaration all or any portion of the real property described in Exhibit A-1 which Declarant currently owns or to which Declarant may obtain title in the future. Declarant may transfer or assign this right to subject property to this Declaration, provided that the transferee or assignee is the developer of or owns at least a portion of the real property described in Exhibit A-1, provided that the transfer or assignment is evidenced by a Recorded Document. Declarant shall subject additional property to this Declaration by recording an Annexation Declaration describing the property being subjected. Such Annexation Declaration shall not require the Members' consent but shall require the consent of the owner of such property, if other than Declarant. Any such annexation shall be effective upon the recording of such Annexation Declaration unless otherwise provided therein. 17.2 Expansion by the Association. Upon termination of the Declarant Control Period, the Townhome Association may subject any real property to the provisions of this Declaration with the consent of the owner of such property, if authorized by the affirmative vote of Members representing sixty-seven percent (671/o) of the total existing votes in the Townhome Association. 32 33158.4017 4858-3088-8807, v. 3 The Townhome Association shall subject such property by recording an Annexation Declaration describing the property being subjected. Any such Annexation Declaration shall be executed by the Townhome Association and the owner of the subject property, and shall be certified by the Secretary of the Townhome Association to have been authorized by the requisite vote of the Members of the Townhome Association. Such additional property may be subjected to such additional easements, covenants and conditions as Declarant or Townhome Association may deem necessary and shall be set forth in a Supplemental Declaration which shall be recorded in the Mecklenburg County Registry SIGNATURE FOLLOWS ON NEXT PAGE 33 33158.4017 4868-3066-8907, v. 3 IN WITNESS WHEREOF, Copper Builders, LLC, as Declarant hereunder, caused this instrument to be executed by its duly authorized Manager, all by order and authority duly granted, effective as of the day and year first above written. DECLARANT: COPPER BUILDERS, LLC, a North Carolina limited liability company, By: Name: �% t Tide: C-rr a f` STATE OF u t3 Ct 1 \ N f d 1 ! 'n Ok COUNTYOF McCK(Cn60 I, M . L o v t r � L ; n d �jrig , a Notary Public of the County and State aforesaid, certify that t personally appeared before me this day and acknowledged that he is a Manager of COPPER BUILDERS, LLC, a North Carolina limited liability company, and that he, being duly authorized to do so, executed the foregoing for and on behalf of said company in the capacity indicated. k`1 Witness my hand and official stamp or seal, this � day of 2023. NOTARY SEAL M LAVERN LINDBERG Signature ofNotary Public NOTARY PUE LIC Print Name: M. L gt * Cowry. Noah Cmdina My Commission Expires: 34 33168.4017 4W8-306"907, v. 3 IV4 EXHIBIT A Land Initially Submitted All those certain pieces, parcels and lots of land lying, being and situate in the City of Charlotte, Mecklenburg County, North Carolina bounded on the west by Ellenwood Place, and on the south by Freeland Lane consisting of a total of 0.725 acres including Lots 1 through 15, Common Area, 10' Class `C' Landscape Buffer and SUE, all as shown on that certain plat recorded in Book 72, Page 278 of the Mecklenburg County Public Registry 35 33158.4017 4858-3068-8907, v. 3 EXMBIT A-1 Land Sub iect to Annexation in Future Any land which is adjacent to the land described in Exhibit A. 36 33158.4017 4858-3088-8907, v. 3 EXHIBIT B Initial Rules and Regulations The following restrictions shall apply to all of the Townhome Community until such time as they are amended, modified, repealed, or limited pursuant to Article IV of the Declaration: 1. General. The Townhome Community shall be used only for residential, recreational, and related purposes (which may include, without limitation, an information center and/or a sales office for Declarant or a builder as approved in advance by Declarant to assist in the sale of any property or portion thereof as described in Exhibit A, offices for any property manager retained by the Townhome Association, and business offices for Declarant or the Townhome Association) consistent with this Declaration and any amendments hereto. 2. Restricted Activities. The following activities are prohibited within the Townhome Community unless expressly authorized by, and then subject to such conditions as the Board may impose: (a) Parking any vehicles within the Townhome Community; however, this restriction shall not apply to Declarant's activities in connection with its construction activities; (b) Raising, breeding or keeping animals, livestock or poultry of any kind, except that a reasonable number of dogs, cats (the combined number of dogs and cats not to exceed three) or other usual and common household pets may be permitted on a Townhome Lot. Any animal which, makes objectionable noise or, in the Board's judgment, constitutes a nuisance or inconvenience to the occupants of other Townhome Lots, shall be removed by the owner upon the Board's request. If the pet owner fails to honor such request, the Board may remove the pet. Aggressive breeds of dogs shall not be allowed within the Townhome Community. Dogs shall be kept on a leash or otherwise confined in a manner acceptable to the Board whenever outside the dwelling. Owners shall clean up behind any Pet while walking such Pet on any Townhome Common Area. Pets shall be registered, licensed, and inoculated as required by law; (c) Any activity that emits foul or obnoxious odors outside the Townhome Lot or creates noise or other conditions, which tend to disturb the peace or threaten the safety of the occupants of other Townhome Lots; (d) Any activity that violates local, state, or federal laws or regulations; provided, the Board shall have no obligation to take enforcement action in the event of a violation; (e) Pursuit of hobbies or other activities, which tend to cause an unclean, unhealthy, or untidy condition to exist outside of enclosed structures on the Townhome Lot; (f) Any noxious or offensive activity (including, without limitation, barking dogs) which in the reasonable determination of the Board tends to cause embarrassment, discomfort, annoyance, or nuisance to persons using the Townhome Common Area or to the occupants of other Townhome Lots; (g) Outside burning of trash, leaves, debris, or other materials, except during the normal course of constructing a dwelling on a Townhome Lot; (h) Use or discharge of any radio, loudspeaker, horn, whistle, bell, or other sound device so as to be audible to occupants of other Townhome Lots, except alarm devices used exclusively for security purposes; (i) Use and discharge of firecrackers and other fireworks; 0) Dumping grass clippings, leaves, or other debris, petroleum products, fertilizers, or other potentially hazardous or toxic substances in any drainage ditch, detention pond or facility, or 37 33158.4017 4858-3068-5907, v. 3 elsewhere within the Townhome Community, except that fertilizers may be applied to landscaping on Townhome Lots and Townhome Common Areas provided care is taken to minimize runoff, and Declarant and Declarant's builders may dump and bury rocks and trees removed from a building site on such building site; (k) Accumulation of rubbish, trash, or garbage except between regular garbage pick ups, and then only in the approved containers to be located at all times within the Dumpster Enclosure except on the designated trash pick up day when they shall be moved to the designated trash pick up staging area and moved back to the enclosure prior to the end of the day; (1) Obstruction or rechanneling drainage flows after location and installation of drainage swales, storm sewers, or storm drains, except that Declarant and the Townhome Association shall have such right; provided, the exercise of such right shall not materially diminish the value of or unreasonably interfere with the use of any Townhome Lot without the Owners' consent; (m) Subdivision of a Townhome Lot into two or more Townhome Lots, or changing the boundary lines of any Townhome Lot after a subdivision plat including such Townhome Lot has been approved and recorded, except that Declarant shall be permitted to subdivide or replat Townhome Lots it owns; (n) Intentionally Deleted; (o) Intentionally Deleted; (p) Discharge of firearms; provided, the Board shall have no obligation to take action to prevent or stop such discharge; (q) On -site storage of gasoline, heating, or other fuels, except that the Townhome Association shall be permitted to store fuel for operation of maintenance equipment; (r) Any business, trade, or similar activity, except that an Owner or occupant residing in a Townhome Lot may conduct business activities within the Townhome Lot so long as: (i) the existence or operation of the business activity is not apparent or detectable by sight, sound, or smell from outside the Townhome Lot; (ii) the business activity conforms to all zoning requirements for the Townhome Community; (iii) the business activity does not involve door-to-door solicitation of residents of the Townhome Community; (iv) the business activity does not, in the Board's judgment, generate a level of vehicular or pedestrian traffic or a number of vehicles being parked within the Townhome Community which is noticeably greater than that which is typical of Townhome Lots in which no business activity is being conducted; and (v) the business activity is consistent with the residential character of the Townhome Community and does not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of other residents within the Townhome Community, as may be determined in the Board's sole discretion. The terms "business" and "trade," as used in this provision, shall be construed to have their ordinary, generally accepted meanings and shall include, without limitation, any occupation, work, or activity undertaken on an ongoing basis which involves the provision of goods or services to persons other than the provider's family and for which the provider receives a fee, compensation, or other form of consideration, regardless of whether: (i) such activity is engaged in full or part-time, (ii) such activity is intended to or does generate a profit, or (iii) a license is required. Leasing of a Townhome Lot shall not be considered a business or trade within the meaning of this subsection. This subsection shall not apply to any activity conducted by Declarant or a builder approved by Declarant with respect to its development and sale of the Townhome Community or its use of any Townhome Lots which it owns within the Townhome Community; 38 33158.4017 4858-3068-8907, v. 3 (s) Capturing, trapping, or killing of wildlife within the Townhome Community, except in circumstances posing an imminent threat to the safety of persons using the Townhome Community; (t) Any activities which materially disturb or destroy the vegetation, wildlife, wetlands, or air quality within the Townhome Community; (u) Conversion of any patio or porch to finished space for use as an apartment or other integral part of the living area on any Townhome Lot without prior approval pursuant to Article V; (v) Intentionally Deleted; (w) Any construction, erection, placement, or modification of any thing, permanently or temporarily, on the outside portions of the Townhome Lot, whether such portion is improved or unimproved, except in strict compliance with the provisions of Article V of the Declaration. This shall include, without limitation, landscaped or grassed areas; signs; basketball hoops, swing sets, and similar sports and play equipment; clotheslines; garbage cans; woodpiles; and hedges, walls, dog runs, animal pens, or fences of any kind; and (x) Hanging of sheets, towels, clothes or laundry in windows or anywhere on a Townhome Lot so as to be visible from any roadway or any other Townhome Lot. 3. Prohibited Conditions. The following shall be prohibited within the Townhome Community: (a) Plants, animals, devices, or other things of any sort whose activities or existence in any way is noxious, dangerous, unsightly, unpleasant, or of a nature as may diminish or destroy the enjoyment of the Townhome Community; (b) Structures, equipment, or other items on the exterior portions of a Townhome Lot which have become rusty, dilapidated, or otherwise fallen into disrepair, (c) Installation of any sprinkler or irrigation systems or wells of any type, other than those initially installed by Declarant or a Declarant approved builder, or otherwise approved in advance by Declarant or the Architectural Review Committee; and (d) Satellite dishes, antennas, and similar devices for the transmission of television, radio, satellite, or other signals of any kind, except that Declarant and the Townhome Association shall have the right, without obligation, to erect or install and maintain any such apparatus for the benefit of all or a portion of the Townhome Community; and (i) satellite dishes designed to receive direct broadcast satellite service which are one meter or less in diameter; (ii) satellite dishes designed to receive video programming services via multi point distribution services which are one meter or less in diameter or diagonal measurement; or (iii) antennas designed to receive television broadcast signals ((i), (ii), and (iii), collectively, "Permitted Devices") shall be permitted-, however, the placement of any such Permitted Device must be approved in advance in writing by Declarant or the Townhome Association. 4. Leasing of Townhome Lots. "Leasing," for purposes of this Paragraph, is defined as regular, exclusive occupancy of a Townhome Lot by any person, other than the Owner for which the Owner receives any consideration or benefit, including, but not limited to, a fee, service, gratuity, or emolument. All leases shall be in writing. No Owner shall lease any Townhome Lot without first providing all lessees with copies of the Governing Documents. Each lease shall require all lessees to acknowledge receipt of copies of all of the Governing Documents and to comply with and adhere to all of the Governing Documents. A true copy of each executed lease, together with such additional information as may be required by the Board, shall be given to the Board by the Townhome Lot Owner within ten (10) days after request by the Board for a copy of same. 39 33158.4017 4858-306"907, v. 3 EXHIBIT C Zonim Plan 40 33158.4017 4858-3068-8907, v. 3 s `° a a a MEL n _ ' 3'o+ev lii" � I I : TRII�N,eYyRyim� j jj�' P r:•, �� e�l�f � 4 R HIP Pi • j � m t � p _ iV d� 1{ °Ee {tiii !V CONSENT AND SUBORDINATION OF LENDER The undersigned, PINNACLE BANK, a Tennessee banking corporation ("Lender"), as successor to Bank of North Carolina, is the beneficiary of that certain Deed of Trust executed by COPPER BUILDERS, LLC, a North Carolina limited liability company (the "Borrower") to HUGH M. QUEENER (as substitute to BNC Credit Corp) ("Trustee"), which is dated and recorded on July 23, 2015, in Book 30150, Page 162, Register of Deeds of Mecklenburg County, North Carolina (the "Registry"), as supplemented by Supplemental Deed of Trust dated and recorded on November 30, 2023 in Book 38510, Page 916 of the Registry (collectively, the "Deed of Trust'). Lender hereby consents to and subordinates the Deed of Trust to the Declaration of Creation of Freeland Townhomes, a North Carolina Planned Community dated December (T, 2023 (the "Declaration") to which this Consent and Subordination is attached, and Lender agrees that all of its right, title and interest in and to the real property described therein by virtue of the Deed of Trust shall be subordinate to the terms and provisions of the foregoing Declaration, except that (i) this subordination shall not be applicable to any liens or assessments created or arising under the Declaration, (ii) no violation of the Declaration shall defeat or render invalid the lien of the Deed of Trust, and (iii) should Lender acquire title to the property secured by the Deed of Trust, any liability Lender might have under the Declaration shall be non -recourse except to the extent of its interest in such property. The Declaration shall survive any foreclosure, deed in lieu of foreclosure and/or exercise of any remedy by Trustee or Lender pursuant to the Deed of Trust. The execution of this Consent and Subordination by the Lender shall not be deemed or construed to have the effect of creating any relationship of partnership or of joint venture nor shall anything contained herein be deemed to impose upon the Lender any of the liabilities, duties or obligations of Declarant (as defined in the Declaration) under the Declaration. Lender executes this Consent and Subordination solely for the purposes set forth herein. [signature appears on the following page] 4867-1399-7972, v. 1 IN WITNESS WHEREOF, Lender has caused this Consent and Subordination of Lender to be executed by its duly authorized officer the day and year first above written. LENDER: PINNACLE BAN a Tenne a king corporation By: Name: AAvr wA-cs Title: S v P STATE OF • • i� __ � :%ram I I certify that the following person personally appeared before me this day, acknowledging to me that he or she voluntarily signed the foregoing document for the purpose stated therein and in the capacity indicated: � a W r-t (name and title of signatory) Date: _ �)Z[.4's-v �6, a04A%1 [Affix Official Seal PAY j . (772� Notary Public P 'nt -�v� M mission expires: 014, t�� •ao;C 4857-1399-7972, v. 1