SW8030110_Current Permit_20030401

F.WAFT
O 10�Q Michael F. Easley, Governor
William G. Ross, Jr., Secretary
Vj y North Carolina Department of Environment and Natural Resources
� r-
-i Alan W. Klimek, P.E., Director
`C Division of Water Quality
Wilmington Regional Office
April 1, 2003
Mr. Terry Turner, Manager
Jimmy's Island, LLC
1904 Eastwood Road, Suite.212
Wilmington,NC 28403
Subject: Permit No. SW8 030110
Water's Edge at Deerfield
Low Density Subdivision Stormwater Permit
Pender County
Dear Mr. Turner:
The Wilmington Regional Office received a complete Stormwater Management Permit
Application for Water's Edge at Deerfield on March 24, 2003. Staff review of the plans and
specifications has determined that the project, as proposed,will comply with the Stormwater
Regulations set forth in Title 15A NCAC 2H.1000. We are forwarding Permit No. SW8 030110,
dated April 1,2003, for the construction of the project Water's Edge at Deerfield.
This permit shall be effective from the date of issuance until rescinded and shall be subject to the
conditions and limitations as specified therein, and does not supercede any other agency permit
that may be required.
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 thirty(30) days following
receipt of this permit. This request must be in the form of a written petition, conforming to
Chapter 150B of the North Carolina General Statutes, and filed with the Office of Administrative
Hearings,P.O.Drawer 27447, Raleigh,NC 27611-7447. Unless such demands are made this
permit shall be final and binding.
If you have any questions, or need additional information concerning this matter,please contact
either Laurie Munn or me at(910) 395-3900.
Sincerely,
6x4k
Rick Shiver
Water Quality Regional Supervisor
RSS/:Ism S:\WQS\STORMWAT\PERMIT\030110.APR03
cc: John Phillip Norris,P.E.
Pender County Inspections
NCDOT Division 3,District 1
Laurie Munn
Wilmington Regional Office
Central Files
N.C.Division of Water Quality 127 Cardinal Drive Extension Wilmington,N.C.28405 [phone] Fax[phone] Customer Service
800-623-7748

State Stornwater Management Systems
Permit No.SW8 030110
STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
STATE STORMWATER MANAGEMENT PERMIT
LOW DENSITY DEVELOPMENT
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
Jimmy's Island, LLC
Water's Edge at Deerfield
Pender County
FOR THE
construction, operation and maintenance of a 25%low density subdivision in compliance with
the provisions of 15A NCAC 2H .1000 (hereafter referred to as the "stormwater rules') and the
approved stormwater management plans and specifications, and other supporting data as attached
and on file with and approved by the Division of Water Quality and considered a part of this
permit for Water's Edge at Deerfield.
The Permit shall be effective from the date of issuance until rescinded and shall be subject to the
following.specific conditions and limitations:
I.DESIGN STANDARDS
1. Each of the 18 lots is limited to a maximum of 9,743 square feet of built-upon area, as
indicated in the approved plans. CAMA regulations may reduce the allowable built-upon
area for those lots within the AEC.
2. The overall tract built-upon area percentage or lot sizes for the project must be
maintained at 25%,per the requirements of Section .1005 of the stormwater rules.
3. Approved plans and specifications for projects covered by this permit are incorporated by
reference and are enforceable parts of the permit.
4. Projects covered by this permit will maintain a minimum 30 foot wide vegetative buffer
between all impervious areas and surface waters.
5. The only runoff conveyance systems allowed will be vegetated conveyances such as
swales with minimum side slopes of 3:1 (H:V) as defined in the stormwater rules and
approved by the Division.
6. All roof drains must terminate at least 30' from the mean high water mark.
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State Stormwater Management Systems
Permit No.SW8 030110
II. SCHEDULE OF COMPLIANCE
1. Swales and other vegetated conveyances shall be constructed in their entirety,vegetated,
and be operational for their intended use prior to the construction of any built-upon
surface.
2. During construction, erosion shall be kept to a minimum and any eroded areas of the
swales or other vegetated conveyances will be repaired immediately.
3. The permittee shall at all times provide the operation and maintenance necessary to
operate the permitted stormwater management systems at optimum efficiency to include:
a. Inspections
b. Sediment removal.
C. Mowing, and revegetating of the side slopes.
d. Immediate repair of eroded areas.
e. Maintenance of side slopes in accordance with approved plans and specifications.
4. Deed restrictions are incorporated into this permit by reference and must be recorded with
the Office of the Register of Deeds prior to the sale of any lot. Recorded deed restrictions
must include, as a minimum, the following statements related to stormwater management:
a. The following covenants are intended to ensure ongoing compliance with State
Stormwater Management Permit Number SW8 030110, as issued by the Division
of Water Quality under NCAC 2H.1000.
b. The State of North Carolina is made a beneficiary of these covenants to the extent
necessary to maintain compliance with the Stormwater Management Permit.
C. These covenants are to run with the land and be binding on all persons and parties
claiming under them.
d. The covenants pertaining to stormwater may not be altered or rescinded without
the express written consent of the State of North Carolina,Division of Water
Quality.
e. Alteration of the drainage as shown on the approved plans may not take place
without the concurrence of the Division of Water Quality.
f. The maximum built-upon area per lot is 9,743 square feet. This allotted amount
includes any built-upon area constructed within the lot property boundaries, and
that portion of the right-of-way between the front lot line and the edge of the
pavement. Built upon area includes, but is not limited to, structures, asphalt,
concrete, gravel,brick, stone, slate, and coquina,but does not include raised, open
wood decking, or the water surface of swimming pools.
g. Filling in or piping of any vegetative conveyances (ditches, swales, etc.)
associated with the development except for average driveway crossings, is strictly
prohibited by any persons.
h. Lots with&CAMA's Area of Environmental Concern may have the permitted
built-upon area reduced due to CAMA jurisdiction within the AEC.
i. Each lot will maintain a 30'wide vegetated buffer between all impervious areas
and surface waters.
i_ All roof drains shall terminate at least 30'from the mean.high water mark.
3

State Stormwater Management Systems
Permit No.SW8 030110
5. The permittee shall submit a copy of the recorded deed restrictions which indicates the
approved built-upon area per lot within 30 days of the date of recording.
6. The permittee shall submit all information requested by the Director or his representative
within the time frame specified in the written information request.
7. No piping shall be allowed except that minimum amount necessary to direct runoff
beneath an impervious surface such as a road and that minimum amount needed under
driveways to provide access to lots.
8. Unless specified elsewhere, permanent seeding requirements for the swales must follow
the guidelines established in the North Carolina Erosion and Sediment Control Planning
and Design Manual.
9. The permittee is responsible for verifying that the proposed built-upon area does not
exceed the allowable built-upon area. Once the lot transfer is complete, the built-upon
area may not be revised without approval from the Division of Water Quality, and
responsibility for meeting the built-upon area limit is transferred to the individual
property owner.
10. If the permittee sets up an Architectural Review Committee (ARC) to review plans for
compliance with the restrictions,the plans reviewed must include all proposed built-upon
area(BUA). Any approvals given by the ARC do not relieve the lot owner of the
responsibility to maintain compliance with the permitted BUA limit.
11. Within 30 days of completion of the project, the permittee must certify in writing that the
project's stormwater controls, and impervious surfaces have been constructed within
substantial intent of the approved plans and specifications. Any deviation from the
approved plans must be noted on the Certification.
12. The Director may notify the permittee when the permitted site does not meet one or more
of the minimum requirements of the permit. Within the time frame specified in the notice,
the permittee shall submit a written time schedule to the Director for modifying the site to
meet minimum requirements. The permittee shall provide copies of revised plans and
certification in writing to the Director that the changes have been made.
13. The permittee shall submit to the Director and shall have received approval for revised
plans, specifications, and calculations prior to construction, for any modification to the
approved plans, including, but not limited to, those listed below:
a. Any revision to any of the items shown on the approved plans, including the
stormwater management system, design concept, built-upon area, details, etc.
b. Project name change.
C. Transfer of ownership.
d. Redesign or addition to the approved amount of built-upon area or to the drainage
area.
e. Further subdivision, acquisition, or selling of the project area.
f. Filling in, altering or piping any vegetative conveyance shown on the approved
plan_
14. The Director may determine that other revisions to the project should require a
modification to the permit.
15. Stormwater conveyances will be located in either dedicated right-of-way(public or
private), recorded common areas or recorded drainage easements. The final plats for the
project will be recorded showing all such required easements, in accordance with the
approved plans.
4

State Stormwater Management Systems
Permit No.SW8 030110
III. GENERAL CONDITIONS
1. Failure to abide by the conditions and limitations contained in this permit may subject the
Permittee to an enforcement action by the Division of Water Quality, in accordance with
North Carolina General Statutes 143-215.6A to 143-215.6C.
2. The permit issued shall continue in force and effect until revoked or terminated.
3. The permit may be modified, revoked and reissued or terminated for cause. The filing of
a request for a permit modification, revocation and reissuance, or termination does not
stay any permit condition.
4. The issuance of this permit does not prohibit the Director from reopening and modifying
the permit,revoking and reissuing the permit, or terminating the permit as allowed by the
laws,rules, and regulations contained in Title 15A of the North Carolina Administrative
Code, Subchapter 2H.1000; and North Carolina General Statute 143-215.1 et. al.
5. The permit is not transferable to any person or entity except after notice to and approval
by the Director. The Director may require modification or revocation and reissuance of
the permit to change the name and incorporate such other requirements as may be
necessary. A formal permit request must be submitted to the Division of Water Quality
accompanied by the appropriate fee, documentation from both parties involved, and other
supporting materials as may be appropriate. The approval of this request will be
considered on its merits, and may or may not be approved.
6. The permittee is responsible for compliance with all permit conditions until such time as
the Director approves the permit transfer request. Transfers to third parties by the
permittee where the required documentation has not been submitted to the Division does
not relieve the permittee of the responsibility for transferring the permit.
7. The issuance of this permit does not preclude the Permittee from complying with any and
all statutes, rules,regulations, or ordinances which may be imposed by other government
agencies (local, state and federal)which have jurisdiction. If any of those permits result in
' revisions to the plans, a permit modification must be submitted.
8. The permittee grants permission to DENR Staff to enter the property during business
hours for the purposes of inspecting the stormwater management system and it's
components.
9. The permittee shall notify the Division of Water Quality of any name, ownership or
mailing address changes within 30 days.
Permit issued this the 1 st day of April, 2003.
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
...................
-opAlan W. Klimek,, P.E.,Director
Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number SW8 030110
5

A&K#02160
Permit No.C*A)903a//a
State of North Carolina (to be provided by DWQ)
Department of Environment and Natural Resources
Division of Water Quality
STORMWATER MANAGEMENT PERMIT APPLICATION FORM
LOW DENSITY SUPPLEMENT
This form may be photocopied for use as an original
A low density project is one that meets the appropriate criteria for built upon area and transports stormwater
runoff primarily through vegetated conveyances. Low density projects should not have a discrete stormwater
collection system as defined by 15A NCAC 2H.1002(18). Low density requirements and density factors can be
found in 15A NCAC 2H.1005 through.1007.
I. PROJECT INFORMATION
Project Name: Watees Edge at Deerfield
Contact Person: Terry Tumer Phone Number: [phone]
Number of Lots: 18 Allowable Built Upon Area Per Lot*: 9,743 SF
* If lot sizes are not uniform, attach a table indicating the number of lots, lit sizes and allowable built
upon area for each lot. The attachment must include the project name,phase,page numbers and provide
area subtotals and totals.
H. BUILT UPON AREA
See the Stormwater Management Permit Application for specific language that must be recorded in the deed
restrictions for all subdivisions.
For uniform lot sizes, complete the following calculation in the space provided below where:
• SA Site Area—the total project area above Mean High Water. Wetlands may be excluded when the
development results in high density pockets.
• DF Density Factor—the appropriate percent built upon area divided by 100.
• RA Road Area—the total impervious surface occupied by roadways.
• OA Other Area—the total area of impervious surfaces such as clubhouses,tennis courts, sidewalks,etc.
• No. Lots—the total number of lots in the subdivision.
• BUA/Lot—the computed allowable built upon area for each lot including driveways and impervious surfaces
located between the front lot line and the edge of pavement.
Form SWU-104 Version 3.99 Page 1 of 2

(SAxDF)—RA—OA=BUA
No.Lots Lot
Calculation:
x ,g5 V3, 2-7 c
�g
II. REQUIRED ITEMS CHECKLIST
Initial in the space provided to indicate the following design requirements have been met and supporting
documentation is attached. If the applicant has designated an agent in the Stormwater Management Permit
Application Form,the agent may initial below.
Applicants Initials
a. A 30 foot vegetative buffer is provided adjacent to surface waters. Projects in the Neuse
River Basin may require additional buffers.
F ( b. Deed restriction language as required on form SWU-101 shall be recorded as a restrictive
covenant. A copy of the recorded document shall be provided to DWQ within 30 days of
platting and prior to sale of any lots.
c. Built upon area calculations are provided for the overall project and all lots.
d. Project conforms to low density requirements within the ORW AEC(if applicable).
[15A NCAC 211.1007(2)(b)]
Form SWU-104 Version 3.99 Page 2 of 2

A&K#02160
ReceivedOFFICE USE QN1.V
Fee Paid Permit Number
! ' - 0 0
State of North Carolina
Department of Environment and Natural Resources
Division of Water Quality
STORMWATER MANAGEMENT PERMIT APPLICATION FORM
This form may he photocopied for use as an original
I. GENERAL INFORMATION
1. Applicants name(specify the name of the corporation, individual, etc. who owns the project):
Jimmy's Island, LLC
2. Print Owner/Signing Official's name and title(person legally responsible for facility and compliance):
Terry Turner, Manager
3. Mailing Address for person listed in item 2 above:
1904 Eastwood Road, Suite 212
City: Wilmington State: NC Zip: 28403
Telephone Number: [phone]
4. Project Name(subdivision,facility, or establishment name—should be consistent with project name on
plans, specifications, letters,operation and maintenance agreements, etc.):
Water's Edge at Deerfield
5. Location of Project(street address):
Off US 17 behind Deerfield Subdivision
City: Hampstead County: Pender
6. Directions to project(from nearest major intersection):
From intersection of US 17 & NC 210, travel south on'US 17 to entrance to Deefeld Subdivision.
Travel down Great Oak Drive to the site.
7. Latitude: 340 20' 50" Longitude: 770 42' 12" of project
8. Contact person who can answer questions about the project:
Name: Terry Turner Telephone Number: [phone]
II. PERMIT INFORMATION
1. Specify whether project is(check one): X New Renewal Modification
Form SWU-101 Version 3.99 Page 1 of 4

2. If this application is being submitted as the result of a renewal or modification to an existing permit, list the
Existing permit number N/A And its issue date(if known) N/A
3. Specify the type of project(check one):
X Low Density High Density Redevelop General Permit Other
4. Additional Project Requirements(check applicable blanks):
X CAMA Major X Sedimentation/Erosion Control 404/401 Permit NPDES Stormwater
Information on required state permits can be obtained by contacting the Customer Service Center at
1-877-623-6748.
III. PROJECT INFORMATION
1 In the space provided below, summarize how stormwater will be treated. Also attach a detailed narrative
(one to two pages)describing stormwater management for the project.
Low density with vegetated swales
2. Stormwater runoff from this project drains to the Cape Fear River Basin.
3. Total Project Area: 20.08 AC 4. Project Built Upon Area: 25 %
5. How many drainage areas does the project have? 1
6. Complete the following information for each drainage area. If there are more than two drainage areas in the
project, attach an additional sheet with the information for each area provided in the same format as below.
Basin Information Dmmage Area 1 Drainage Area 2
Receiving Stream Name Mill Creek
Receiving Stream Class ORW SA
Drainage Area 874,628 SF/20.08 AC
Existing Impervious *Area 0
Proposed Impervious*Area 1 218,657 SF/5.02 AC
%Impervious*Area(total) 25%
Impervious* Surface Area Drainage Area 1 Drainage Area 2
On-site Buildings 175,378 SF/4.026 AC
On-site Streets 43,279 SF/0.994 AC
On-site Parkin 0
On-site Sidewalks 0
Other on-site 0
Off-site 0
Total:218,657 SF/5.02 AC Total:
*Impervious area is defined as the built upon area including, but not limited to, buildings, roads,parking areas
Sidewalks,gravel areas, etc.
Form SWU-101 Version 3.99 Page 2 of 4

3. How was the off-site impervious area listed above derived? N/A
IV. DEED RESTRICTIONS AND PROTECTIVE COVENANTS
The following italicized deed restrictions and protective covenants are required to be recorded for all
subdivisions, outparcels and future development prior to the sale of any lot. If lot sizes vary significantly,a
table listing each lot number, size and the allowable built-upon area for each lot must be provided as an
attachment.
I. The following covenants are intended to ensure ongoing compliance with state stormwater managementpermit
number as issued by the Division of Water Quality. These covenants may
not be changed or deleted without the consent of the State.
2. No more than 9,743 square feet of arty lot shall be covered by structures or impervious materials.
Impervious materials include asphalt,gravel,concrete, brick, stone, slate or similar material but do not include
wood decking or the water surface of swimmingpools.
3. Swales shall not be filled in,piped, or altered except as necessary to provide driveway crossings.
4. Built-upon area in excess of the permitted amount requires a state stormwater management permit modification
prior to construction.
5. All permitted rungfffrom outparcels or future development shall be directed into the permitted stormwater control
system. These connections to the stormwater control system shall be performed in a manner that maintains the
integrity and performance of the system as permitted.
By your signature below,you certify that the recorded deed restrictions and protective covenants for this project
shall include all the applicable items required above,that the covenants will be binding on all parties and persons
claiming under them,that they will run with the land,that the required covenants cannot be changed or deleted
without concurrence from the State, and that they will be recorded prior to the sale of any lot.
V. SUPPLEMENT FORMS
The applicable state stormwater management permit supplement form(s)listed below must be submitted for
each BMP specified for this project. Contact the Stormwater and General Permits Unit at(919) 733-5083 for
the status and availability of these forms.
Form SW-102 Wet Detention Basin Supplement
Form SW-103 Infiltration Basin Supplement
Form SWU-104 Low Density Supplement
Form SWU-105 Curb Outlet System Supplement
Form SWU 106 Off-Site System Supplement
Form SW-107 Underground Infiltration Trench Supplement
Form SWU-108 Neuse River Basin Supplement
Form SWU-109 Innovative Best Management Practice Supplement
Form SWU-101 Version 3.99 Page 3 of 4

VI. SUBMITTAL REQUIREMENTS
Only complete application packages will be accepted and reviewed by the Division of Water Quality(DWQ).
A complete package includes all of the items listed below. The complete application package should be
submitted to the appropriate DWQ Regional Office.
1. Please indicate that you have provided the following required information by initialing in the space provided
next to each item.
Original and one copy of the Stormwater Management Permit Application Formt
One copy of the applicable supplement form(s)for each BMP
Permit application processing fee of$420(payable to NCDENR) ACT
0 Detailed narrative description of stormwater treatment/management �T• Two copies of plans and specifications, including: j�7
- Development/Project name
- . Engineer and firm
- Legend
- North arrow
Scale
Revision number&date
Mean high water line
Dimensioned property/project boundary
Location map with named streets or NCSR numbers
Original contours,proposed contours, spot elevations,finished floor elevations
Wetlands delineated, or a note on plans that none exist
Existing drainage(including off-site),drainage easements,pipe sizes,runoff calculations
- Drainage areas delineated
Vegetated buffers(where required)
VII. AGENT AUTHORIZATION
If you wish to designate authority to another individual or firm so that they may provide information on your
behalf;please complete this section.
J. Phillip Norris, P.E.
Designated agent(individual or firm): Andrew&Kuske Consulting Engineers, Inc.
Mailing Address: 902 Market Street
City: Wilmington State: NC Zip: 28401
Phone: (910) 343-9653 Fax: (910) 343-9604
VIQ. APPLICANT'S CERTIFICATION
I,(print or type name ofperson listed in General Information, item Z) Terry Tumer, Manager ,
Certify that the information included on this permit application form is,to the best of my knowledge,correct and
that the project will be constructed in conformance with the approved plans,that the required deed restrictions and
protective covenants will be recorded, and that the proposed project complies with the requirements of 15A NCAC
211.1000.
Signature: Date: (o 3
Form SWU-101 Version 3.99 Page 4 of 4

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04 JUL -8 PM I: 10
J`YCE i4l.'W10E..0000'
ROISTER OF SEEDS
P17NDE~R rMUNT'Y,.NC
STATE OF NORTH CAROLINA DECLARATION OF COVENANTS
CONDITIONS AND RESTRICTIONS
COUNTY OF PENDER FOR WATERS EDGE AT DEERFIELD
This Declaration, Made the 8th day of July,2004, by UNIVERSITY GROUP, INC., a
North Carolina corporation, hereinafter referred to as "Declarant" or "Developer" for the
purposes hereinafter stated;
WITNESSETH :
Whereas, Declarant is the owner of certain real property in Pender County, North
Carolina, known as WATERS EDGE AT DEERFIELD,which is shown on a plat recorded in
the Office of the Register of Deeds of Pender County, North Carolina, in Map Book 37
Page 133, to which reference is made for a more particular description (the "Property").
NOW,THEREFORE, Declarant declares that the Property described above shall be
held, sold and conveyed subject to the North Carolina Planned Community Act set forth in
Chapter 47F of the North Carolina General Statutes (the "Act"), as well as the following
easements, restrictions, covenants, and conditions.
ARTICLE I.
DEFINITIONS
In addition to other terms defined herein, the following capitalized terms shall have
the following meanings as used herein:
SECTION 1. Additional Property shall mean and referto any lands, in addition to the
above described Property, annexed to and made a part of the Planned Community.
SECTION 2. Allocated Interest shall mean the Common Expense Liability and votes
in the Association allocated to each Lot.
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Recorded ti Veriilieo
Joyce V. cegood
Register Deeds
Pe4der (1p ty, Nd 2 B

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SECTION 3. Association shall mean and refer to Waters Edge HOA, Inc., a North
Carolina non-profit corporation, its successors and assigns, the owners association
organized pursuant to the Act for the purposes set forth herein.
SECTION 4. Boat Slips shall mean the 18 boat slips shown on the above
referenced plat of the Community Boating Facility.
SECTION 5. Boat Slip Certificate shall mean the Boat Slip Certificate in the form
attached hereto as Exhibit B.
SECTION 6. Common Elements or Open Space shall mean and refer to all lands
and easements within or appurtenant to the Planned Community owned or enjoyed by the
Association, other than a Lot, and intended for the common use and enjoyment of the
Owners, including,without limitation, any private roads and storm water facilities within the
Planned Community. Any streets and roads shown on the above referenced plat as public
shall constitute Common Elements until such streets and roads are accepted for
maintenance by the NC Department of Transportation. All Access Easements and Public
and Private Utility Easements, including but not limited to those over Lots 2, 3, 17 and 18
as shown on the above referenced plat, constitute Common Elements (but the Owners of
said Lots may use their land for any purpose that does not interfere with such easements,
including access to their Lots). The easements granted by Lanwillo Development
Company by Deed of Easement recorded in Book 1946, Page 183 of the Pender County
Registry(the "Deed of Easement"), as amended, constitute Common Elements and shall
be maintained by the Association as provided in the Deed of Easement.
SECTION 7. Common Expenses means expenditures made by or financial liabilities
of the Association, together with any allocations to reserves, including but not limited to (i)
the cost of irrigation for the Common Elements and (ii) the cost of electricity, water and
irrigation for the Community Boating Facility (defined below) .
SECTION 8. Common Expense Liability means the liability for Common Expenses
allocated to each Lot as permitted by the Act, this Declaration or otherwise.
SECTION 9. Community Boating Facility means the riparian easement,the pier,the
floating dock, and 18 boat slips as to be shown on the plat referenced in the preamble to
these covenants and labeled "Community Boating Facility". The Community Boating
Facility.shall be for the exclusive use and enjoyment of the subclass of Class A Members
designated and defined hereinafter as "Class A Members-Boating". The Association is
obligated pursuant to this Declaration to operate and maintain the Community Boating
Facility with the cost thereof being assessed only against the Class A Members-Boating as
is hereinafter provided.
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SECTION 10. Declarant shall be used interchangeably with Developer (which
designations shall include singular, plural, masculine and neuter as required bythe context)
and shall mean and refer to University Group; Inc., its successors and assigns, if such
successors or assigns should acquire undeveloped property from the Declarant or a Lot not
previously disposed of for the purpose of development and reserves or succeeds to any
Special Declarant Right.
hereof.SECTION 11. Declarant Control Period shall have the meaning set forth in Article III
SECTION 12. Declaration shall mean this instrument as it may be from time to time
amended or supplemented.
SECTION 13. Executive Board or Board shall be used interchangeably with the
Board of Directors and means the body, regardless of name,designated in this Declaration
or otherwise to act on behalf of the Association.
SECTION 14. Limited Common Elements shall mean areas and facilities within any
Lot which are for the use of the Lot Owner as septic nitrification fields but which the
Association is obligated to maintain pursuant to the terms of this Declaration. The Limited
Common Elements shall consist of SF (septic fields) 3A, 6A, 9A, 10A, 18A and Reserve
No. 1 as shown on the above referenced plat(if none, so state). The Declarant shall have
the right to grant an easement for septic fields Reserve No. 1 to any Lots of Declarant's
choice (subject to approval of applicable regulatory agencies). The Declarant may at any
time release its right to grant septic field easements over Reserve No. 1 and upon such
release, said Lots shall cease to be Limited Common Elements and shall become Common
Elements.
SECTION 15. Lots shall mean and refer to any portion of the Planned Community
designated for separate ownership by a Lot Owner.
SECTION 16. Lot Owner or Owner shall mean the Declarant or other Person who
owns a fee simple title to any Lot, including contract sellers, but excluding those having
such interest merely as security for the performance of an obligation.
SECTION 17. Master Association means a master association as defined in the Act.
SECTION 18. Person means a natural person, corporation, business trust, estate,
trust, partnership, association, joint venture, government, governmental subdivision, or
agency or other legal or commercial entity.
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SECTION 19. Planned Community shall mean and refer to the Property plus any
Additional Property made a part of the Planned Community bythe exercise of any Special
Declarant Right.
SECTION 20. Purchaser means any Person, other than the Declarant or a Person
in the business of selling real estate for the purchaser's own account, who by means of a
voluntary transfer acquires a legal or equitable interest in a Lot, other than (i) a leasehold
interest(including renewal options)of less than 20 years,or(ii)as security for an obligation.
SECTION 21. Reasonable Attorneys' Fees means attorneys' fees reasonably
incurred without regard to any limitations on attorneys' fees which otherwise may be
allowed by law.
SECTION 22. Special Declarant Rights means rights reserved forthe benefit of the
Declarant including without limitation the right (i) to complete improvements intended or
planned by Developer for the Property or Additional Property; (ii) to exercise any
development or other right reserved to the Declarant by this Declaration or otherwise; (iii)to
maintain within the Planned Community sales offices, management offices, construction
offices/trailers, signs advertising the Planned Community, and models; (iv) to use the
Common Elements for the purpose of making improvements within the Planned
Community; (v) to make the Planned Community part of a larger planned community or
group of planned communities; (vi) to make the Planned Community subject to a Master
Association; (vii) to appoint or remove any officer or Executive Board member of the
Association or any Master Association during the Declarant Control Period or(viii)to permit
other land to be annexed to and made part of the Planned Community in accordance with
the terms of this Declaration.
SECTION 23. Stormwater Permit shall mean State Stormwater Permit # SW8
030110 issued by the North Carolina Division of Water Quality (DWQ), Department of
Environment and Natural Resources (DENR).
ARTICLE II.
PROPERTY RIGHTS AND EASEMENTS
SECTION 1. Owners' Property Rights and Easement of Enjoyment. Every Owner
shall have and is hereby granted a right and easement of enjoyment in and to the Common
Elements, if any, which shall be appurtenant to and shall pass with the title to every Lot,
subject to the following provisions:
A. The Association may make and amend reasonable rules and regulations
governing use of the Common Elements by the Owners;
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B. The Association may grant a security interest in or convey the Common
Elements, or dedicate or transfer all or part of the Common Elements,to any public agency,
authority or utility for such purposes and subject to such conditions as may be agreed to by
at least eighty percent(80%)of the Members, excluding the Developer; provided, however,
that the Association may without the consent of the Owners grant easements, leases,
licenses and concessions through or over the Common Elements. No conveyance or
encumbrance of Common Elements shall deprive any Lot of its rights of access or support.
C. An easement of enjoyment in and over SF (septic fields)3A, 6A, 9A, 10A,18A(in
favor of the Owners of Lots 3, 6, 9, 10 and 18, respectively)and in and over Reserve No. 1
(with Declarant being entitled to grant, subject to the approval of applicable regulatory
agencies, septic field easements over Reserve No. 1 to such Lots as Declarant deems
appropriate) as shown on the above referenced plat, for the purpose installing, operating
and maintaining upon them septic nitrification fields with such piping and otherfacilities as
appropriate. Any damage to any septic nitrification fields located upon any such Lot
caused by the negligence of the Association or any Owner other than the Owner of the Lot
in question shall be paid for by the Association (but the Association may recover from the
Lot Owner causing such damage in accordance with the provisions of Article X, Section 2.
A. hereof). Lot 3 only has an easement over SF3A, Lot 6 over SF6A, Lot 9 over SF9A, Lot
10 over SF10A and Lot 18 over SF18A.
SECTION 2. Easements in Favor of Declarant and the Association. The following
easements are reserved to Declarant and the Association, their agents, contractors,
employees, successors and assigns:
A. Easements as necessary in the lands constituting the Common Elements and the
rear, front and side ten feet of each Lot for the installation and maintenance of utilities and
drainage facilities (including the right to go upon the ground with men and equipment to
erect, maintain, inspect, repair and use electric and telephone lines, wires, cables,
conduits, sewers,water mains and other suitable equipment forthe conveyance and use of
electricity,telephone equipment, gas, sewer,water or other public conveniences or utilities
on, in or over each Lot and such other areas as are shown on the plat of the Property or
any Additional Property recorded or to be recorded in the office of the Register of Deeds of
the county where the Planned Community is located; the right to cut drain ways, swales
and ditches for surface water whenever such action may appear to the Developer or the
Association to be necessary in order to maintain reasonable standards of health, safety and
appearance; the right to cut any trees, bushes or shrubbery;the right to make any grading
of the soil, or to take any other similar action reasonably necessary to provide economical
and safe utility installation and to maintain reasonable standards of health, safety and
appearance; and the right to locate wells, pumping stations, and tanks within residential
areas, or upon any Lot with the permission of the Owner of such Lot). No structures or
plantings or other material shall be placed or permitted to remain upon such easement
areas or other activities undertaken thereon which may damage or interfere with the
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installation or maintenance of utilities or other services, or which may retard, obstruct or
reverse the flow of water or which may damage or interfere with established slooe ratios or
create erosion. These easement areas (whether or not shown on the recorded plats for the
Planned Community) but not the improvements within such areas shall be maintained by
the respective Owner except those for which a public authority or utility company is
responsible.
B. Easements over all private streets, if any, access easements, and Common
Elements within the Planned Community as necessary to provide access, ingress and
egress, to and the installation of utilities for any Additional Property.
C. An easement of unobstructed access over, on, upon, through and across each
Lot and the Limited Common Elements located thereon, if any, at all reasonable times to
perform any maintenance and repair to the Limited Common Elements required by this
Declaration.
SECTION 3. Other Easements. The following additional easements are granted by
Declarant:
A. An easement to all police, fire protection, ambulance and all similar persons,
companies or agencies performing emergency services, to enter upon all Lots and
Common Elements in the performance of their duties.
B. In case of any emergency originating in or threatening any Lot or Common
Elements, regardless of whether any Lot Owner is present at the time of such emergency,
the Association or any other person authorized by it, shall have the immediate right to enter
any Lot for the purpose of remedying or abating the causes of such emergency and making
any other necessary repairs not performed by the Lot Owners.
C. The Association is granted an easement over each Lot for the purposes of
providing Lot maintenance when an Owner fails to provide maintenance and upkeep in
accordance with this Declaration.
D. The Owners of Lots having an easement of enjoyment in and over SF 3A, 6A,
9A, 10A, 18A, and Reserve No. 1 shall be entitled to install, operate and maintain upon the
"10' Utility Easement[s] for Public and Private Use" and 15' Utility Easement[s]for Public
and Private Use" shown on the above referenced plat, and over Waters Edge and Great
Oak Drives, pipelines to transport sewage from their septic tanks to their septic fields. Each
Lot Owner installing and maintaining such pipelines shall restore the surface of the
easements to the condition existing immediately before such installation or maintenance
commenced and shall be .responsible for any damage to any road surface, landscaping,
other property, or to persons, occurring on account of such activities. The location of any
such pipelines within Waters Edge Drive must be approved by the Declarant or the
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Architectural Control Committee. All easements granted or described herein are subject to
being replaced by North Carolina Department of Transportation ("NCDOT")encroachment
agreements at anytime that NCDOT accepts Waters Edge Drive and/or Great Oaks Drive
for maintenance. All septic fields (onsite and offsite), force mains, collection sewers and
other sewer facilities shall be located (setbacks, etc) as required by North Carolina
Administrative Code Section 15A NCAC 18A.1950, entitled "Location of Sanitary Systems".
E. The Owner of Lot 4 as shown on the above referenced plat is granted a non-
exclusive easement over the land described on Exhibit A attached hereto and incorporated
herein by reference, the same being portion of the "30' Access and Utility Easement"
located on Lot 3 as shown on said plat for the purpose of to constructing/installing,
operating and maintaining a driveway and landscaping over said easement.
SECTION 4. Nature of Easements. All easements and rights described herein are
perpetual easements appurtenant, running with the land, and shall inure to the benefit of
and be binding on the Declarant and the Association, their successors and assigns, and
any Owner, purchaser, mortgagee and other person having an interest in the Planned
Community, or any part or portion thereof, regardless of whether or not reference is made
in the respective deeds of conveyance, or in any mortgage or trust deed or other evidence
of obligation, to the easements and rights described in this Declaration.
ARTICLE III.
HOMEOWNERS' ASSOCIATION
SECTION 1. Formation of Association. The Association shall be incorporated no
later than the date the first Lot in the Planned Community is conveyed. The Association is
a nonprofit corporation organized pursuant to the Nonprofit Corporation Act of the State of
North Carolina for the purpose of establishing an association for the Owners of Lots to
operate and maintain the Common Elements and any Limited Common Elements in
accordance with this Declaration, its Charter and Bylaws The Association shall be
empowered to perform and/or exercise those powers set forth in the Act as it may be
amended from time to time, in addition to any powers and authority otherwise granted to it.
SECTION 2. Membership. Every Lot Owner shall be a Member of the Association.
Membership shall be appurtenant to and may not be separated from Lot ownership.
SECTION 3. Voting Rights. The Association shall have two classes of voting
Membership.
Class A. Class A Members shall be all Owners,with the
exception of the Declarant, and shall be entitled to one vote for
each Lot owned. When more than one person holds an
interest In any Lot, all such persons shall be Members. The
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vote for such Lot shall be exercised as they determine, but in
no event shall more than one vote be case with respect to any
Lot. Fractional voting with respect to any Lot is prohibited.
There shall be a subclass of membership within Class A
Membership known and "Class A Membership-Boating". The
subclass shall consist of those Class A Members who hold a
Boat Slip Certificate.
Class B. The Declarant shall be a Class B Member and
shall be entitled to three (3) votes for each Lot owned. The
Class B Membership shall cease and be converted to Class A
Membership on the happening of any of the following events,
whichever occurs earlier:
(a) when the total vote outstanding in the Class A
Membership equals the total vote outstanding in the Class B
Membership; or
(b) on December 31, 2007; or
(c) upon the voluntary surrender of all Class B
Membership by the holder thereof.
The period during which there is Class B Membership is sometimes referred to
herein as the "Declarant Control Period".
SECTION 4. Government Permits. After completion of construction of anyfacilities
required to be constructed by Declarant pursuant to permits, agreements and easements
for the Planned Community, all duties, obligations, rights and privileges of the Declarant
under any water, sewer, stormwater and utility agreements,easements and permits for the
Planned Community with municipal or governmental agencies or public or private utility
companies, shall be the duties, rights, obligations, privileges and the responsibility of the
Association, notwithstanding that such agreements, easements or permits have not been
assigned or the responsibilities thereunder specifically assumed by the Association. There
are additional provisions made in this Declaration concerning stormwater facilities and the
Stormwater Permit.
SECTION 5. Common Elements. The Association shall at its sole cost and expense
be responsible for the operation and maintenance of each Common Element within the
Planned Community form the date of completion of its construction or improvement by the
Developer, whether or not (i) such Common Element has actually been deeded to the
Association, or (ii) any permit issued by a governmental agency to Declarant for the
construction and operation of the Common Element has been transferred from the
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Declarant to the Association or assumed by the Association. If the Declarant is required by
any government agency to provide any operation or maintenance activities to a Common
Element for which the Association is liable to perform such operation and maintenance
pursuant to this section,then the Association agrees to reimburse the Declarant the cost of
such operation and maintenance within 30 days after Declarant renders a bill to the
Association therefor. The Association agrees to levy a Special Assessment to cover the
amount of such bill if it does not have other sufficient funds available. Declarant shall be
entitled to specific performance to require the Association to levy and collect such Special
Assessment.
SECTION 6. Architectural Control Committee. The Executive Board shall perform
all duties of the Architectural Control Committee if no such committee is appointed by it,
subject, however, to the Special Declarant Rights. Any Architectural Control Committee
appointed by the Executive Board shall consist of at least 3 members.
ARTICLE IV.
INSURANCE AND BONDS
SECTION 1. Community Boating Facility Insurance. Commencing not later than the
time of the first issuance of a Boat Slip Certivicate to a Person that is not a Declarant, it
shall be the duty of the Association to maintain in effect casualty and liability insurance
covering the Community Boating Facility as follows,to the extent it is reasonably available:
A. Amount and Scope of Insurance. All insurance policies necessary or desisrable
(except personal property of an Owner) shall be secured by the Board of Directors, or its
designee, on behalf of the Association. Such insurance shall at a minimum cover against
(1) loss or damage by fire or other hazards normally insured against in an amount after
application of any deductibles of not less than 80 percent of the replacement cost of the
insured property at the time the insurance is purchased and at each renewal date exclusive
of land escalation, foundations and other items normally excluded from property policies,
and (2) general liability insurance for each Lot, with limits of at least $1,000,000.00 for
bodily injury, including deaths of persons and property damage arising out of a single
occurrence.
B. Insurance Provisions. The Board of Directors shall make diligent efforts to insure
that the insurance policies required by this section provide for the following:
(1) a waiver of subrogation by the insurer as to any
claims against the Association, any officer, director, agent or
employee of the Association, the Lot Owners and their
employees, agents, tenants and invitees;
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(2) a waiver by the insurer of its right to repair and
reconstruct instead of paying cash;
(3) coverage may not be canceled or substantially
modified (including cancellation for nonpayment of premium)
without at least thirty days prior written notice to the named
insured and all mortgagees;
(4) coverage will not be prejudiced by act or neglect of
the Lot Owners when said act or neglect is not within the
control of the Association or by any failure of the Association to
comply with any warranty or condition regarding any portion of
the Planned Community over which the Association has no
control.
(5)the master policy cannot be cancelled, invalidated or
suspended on account of the conduct of any one or more
individual Lot Owners;
(6)the master policy cannot be cancelled, invalidated or
suspended on account of the conduct of any officer or
employee of the Board of Directors without prior demand in
writing that the Board of Directors cure the defect and the
allowance of a reasonable time thereafter within which the
defect may be cured;
(7)each Class A Member-Boating is an insured person
under the policy to the extent of the Member's insurable
interest;
(8) if at the time of a loss under the policy, there is other
insurance in the name of a Class A Member-Boating covering
the same risk covered by the policy, the Association's policy
provides primary insurance.
C. Premiums. All premiums on the insurance policies required by this section and
any deductibles payable by the Association upon loss shall be a Common Expense paid by
the Class A Members-Boating.
D. Proceeds. All insurance policies purchased pursuant to these provisions shall
provide that all proceeds thereof shall be payable to the Board as insurance trustee or to
such attorney-at-law or institution with trust powers as may be approved by the Board of
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Directors who shall hold any such insurance proceeds in trust for Class A Members-Boating
and lien holders as their interest may appear;
E. Policies. All insurance policies purchased by the Board of Directors shall be with
a company or companies permitted to do business in the State of North Carolina and
holding a rating of "A" or better by the current issue of Best's Insurance Reports. All
insurance policies shall be written for the benefit of the Board of Directors and the Class A
Members-Boating and their mortgagees as their respective interests may appear, and shall
provide that all proceeds thereof shall be payable to the Board of Directors.
F. Distribution of Insurance Proceeds. Subject to the provisions of Section 47F-3-
113(g) of the Act, the proceeds of insurance policies maintained by the Association
pursuant to this section shall be distributed to or for the benefit of the beneficial owners in
the following manner:
(1) all reasonable expenses of the insurance trustee
shall be first paid or provision may therefor;
(2) the remaining proceeds shall be used to defray the
cost of repairs for the damage or reconstruction for which the
proceeds are paid. Any proceeds remaining after defraying
such cost shall be distributed to the beneficial owners,
including lienholders of record, or retained by the Association
for such common expenses or purposes as the Board shall
determine.
SECTION 2. Individual Home Insurance. All Owners shall purchase at their
individual expense individual policies covering each Lot and Lot Owner individually.
SECTION 3. Common Element Insurance. The Board of Directors on behalf of the
Association, as a Common Expense of all Lot Owners, may at all times keep the Common
Elements and other assets of the Association insured against loss or damage by fire or
other hazards and such other risks, including public liability insurance, upon such terms
and for such amounts as may be reasonably necessary from time to time to protect such
property, which insurance shall be payable in case of loss to the Association for all
Members. The Association shall have the sole authority to deal with the insurer in the
settlement of claims. In no event shall the insurance coverage obtained by the Association
be brought into contribution with insurance purchased by Members or their mortgagees.
The Association at minimum shall maintain with regard to the Common Elements the
insurance coverage(s) required by the Act.
SECTION 4. Fidelity Bond. The Association may maintain, as a Common Expense
paid by all Owners, blanket fidelity bonds for all officers, directors, employees and all other
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persons handling or responsible for funds of the Association, as follows (provided,
however, that if the Association shall delegate some or all of the responsibility for the
handling of its funds to a management agent, such fidelity bonds shall be maintained by
such management agent for its officers, employees and agents handling or responsible for
funds of or administered on behalf of the Association):
A. The total amount of fidelity bond coverage required shall be based upon best
business judgment and shall not be less than the estimated maximum of funds, including
reserve funds, in the custody of the Association or the management agent, as the case
may be, at any given time during the term of each bond. However, in no event may the
aggregate amount of such bonds be less than a sum equal to three months aggregate
assessments on all units plus reserve funds;
B. Fidelity bonds required herein must meet the following requirements:
(1) fidelity bonds shall name the Association as an
obligee;
(2)the bonds shall contain waivers by the issuers of the
bonds of all defenses upon the exclusion of persons serving
without compensation from the definition of "employees", or
similar terms or expressions;
(3) the premiums on all bonds required herein for the
Association (except for premiums on fidelity bonds maintained
by a management agent for its officers,employees and agents)
shall be paid by the Association as a common expense;
(4) the bonds shall provide that they may not be
canceled or substantially modified (including cancellation for
nonpayment of premium) without at least ten (10) days prior
written notice to the Association, to any insurance trustee and
each institutional holder of a first lien on any Lot.
ARTICLE V.
COVENANTS FOR ASSESSMENTS
SECTION 1. Creation of the Lien and Personal Obligation of Assessments. Each
Lot Owner covenants and agrees to pay to the Association the following assessments
(collectively the "Assessments"):
A. Annual Assessments;
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B. Special Assessments;
C. Insurance Assessments;
D. Ad Valorem Tax Assessments; and
E. Working Capital Assessments.
The Assessments,together with interest,costs and reasonable attorney's fees,shall
be a charge on the land and shall be a continuing lien upon the respective Lot against
which the Assessments are made. Each such Assessment, together with interest, costs
and reasonable attorney's fees,shall also be the personal obligation of the Person who was
the Owner of such Lot at the time when the Assessment fell due. The personal obligation
for delinquent Assessments shall not pass to the Owner's successors in title unless
expressly assumed by them.
SECTION 2. Purpose of Annual Assessments. The Annual Assessments levied by
the Association shall be used exclusively to promote the recreation, health, safety and
welfare of the Owners and residents of the Planned Community and for the maintenance,
repair and replacement of the Common Elements,the Community Boating Facility, and any
Limited Common Elements. The maintenance of the Community Boating Facility shall
include such dredging as is necessary to keep the boat channels and docking areas
passable at all normal tides. The Association is authorized to enter into contracts with
other property owners who utilize the boat channels for the sharing of the cost of
maintenance/dredging thereof. The funds arising from said assessments or charges, may
be used for any or all of the following purposes: Operations, maintenance and
improvement of the Common Elements, and any Limited Common Elements, including
payment of utilities; enforcing this Declaration; paying taxes, insurance premiums,legal and
accounting fees and governmental charges; establishing working capital; paying dues and
assessments to any organization or Master Association of which the Association is a
member; and in addition,doing any otherthings necessary or desirable in the opinion of the
Association to keep the Common Elements, the Community Boating Facility and Limited
Common Elements in good operating order and repair.
SECTION 3. Annual Assessments. The Executive Board shall adopt a proposed
annual budget at least 90 days before the beginning of each fiscal year of the Association.
Within 30 days after adoption of the proposed budget for the Planned Community, the
Executive Board shall provide to all of the Lot Owners a summary of the budget, by
components as established hereinafter in this Section, and notice of a meeting to consider
its ratification, including a statement that the budget may be ratified without a quorum.
Each component of the budget is ratified unless at the meeting a majority of all of the Lot
Owners in the Association entitled to vote on the component rejects the budget component.
All members shall be entitled to vote on the Common Element Component(defined below).
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Only the Class A Members-Boating, shall be entitled to vote on the Community Boating
Component(defined below). In the event the proposed budget(or component)is rejected,
the periodic budget(or component) last ratified by the Lot Owners shall be continued until
such time as the Lot Owners ratify a subsequent budget (or component) proposed by the
Executive Board. The Annual Assessment for each Lot shall be established based on the
annual budget thus adopted; provided, however, that the first Annual Assessment shall be
set by the Declarant prior to the conveyance of the first Lot to an Owner. The due date for
payment shall be established by the Executive Board. The Executive Board shall have the
authority to require the Assessments to be paid in periodic installments. The Association
shall, upon demand, and for a reasonable charge furnish a certificate signed by an officer
of the Association setting forth whether the Assessments on a specified Lot have been
paid.
A. Budget and Assessment Components: The Board shall include as a separate
component of the annual budget and of the Annual Assessments, the following:
(i) Common Element Component consisting of the annual cost of
operating and maintaining the Common Elements.
(ii) Community Boating Component consisting of the annual cost of
operating and maintaining the Commmunity Boating Facility, including
the annual premium for the insurance coverage required by Article IV,
Section 1 hereof.
B. Calculation of Annual Assessments: The Common Element Component shall be
paid equally by all Lots. The Community Boating Component shall be paid equally by the
Class A Members-Boating.
SECTION 4. Special Assessments. In addition to the Annual Assessments
authorized above, the Association may levy, in any assessment year, a Special
Assessment applicable to the year only for the following purposes:
A. To defray, in whole or in part, the cost of any construction, reconstruction, repair
or replacement of a capital improvement upon the Common Elements and any Limited
Common Elements, including fixtures and personal property related thereto, provided that
any such Special Assessment shall have the assent of two-thirds (2/3)of the Members of
each class who are voting in person or by proxy at a meeting duly called for this purpose.
Written notice of any meeting of Owners called for the purpose of approving such Special
Assessment shall be sent to all Members not less than ten (10) days nor more than sixty
(60) days in advance of the meeting.
B. Without a vote of the Members, to provide funds to reimburse the Declarant as
provided for in Article III, Section 5, hereof.
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SECTION 5. Insurance Assessments. All premiums on insurance policies
purchased by the Board of Directors or its designee and any deductibles payable by the
Association upon loss shall be a Common Expense, and the Association may at anytime
levy against the Owners equally an "Insurance Assessment", in addition to the Annual
Assessments,which shall be in an amount sufficient to pay the cost of all such deductibles
and insurance premiums not included as a component of the Annual Assessment.
SECTION 6. Ad Valorem Tax Assessments. All ad valorem taxes levied against the
Common Elements, if any, shall be a common expense, and the Association may at any
time year levy against the Owners equally an "Ad Valorem Tax Assessment", in addition to
the Annual Assessments, which shall be in an amount sufficient to pay ad valorem taxes
not included as a component of the Annual Assessment.
SECTION 7. Working Capital Assessments. At the time title to a Lot is conveyed to
an Owner by Declarant, the Owner shall pay the sum of $100.00 to the Association as
working capital to be used for operating and capital expenses of the Association. Class A
Members-Boating shall pay an additional working capital assessment at closing of$100.00.
Such amounts paid for working capital are not to be considered as advance payment of
the Annual or any other Assessments.
SECTION 8. Rate of Assessment. The Association may differentiate in the amount
of Assessments charged when a reasonable basis for distinction exists, such as between
vacant Lots of record and Lots of record with completed dwellings forwhich certificates of
occupancy have been issued by the appropriate governmental authority, orwhen any other
substantial difference as a ground of distinction exists between Lots. However,
Assessments must be fixed at a uniform rate for all Lots similarly situated.
SECTION 9. Commencement of Assessments. Assessments for each Lot shall
commence upon the date of acceptance by an Owner of a deed from Declarant.
SECTION 10. Effect Of Nonpayment of Assessments And Remedies Of The
Association. Any Assessment or installment thereof not paid within thirty(30)days after the
due date shall bear interest from the due date at the highest rate allowable by law. The
Association may bring an action at law against the Owner personally obligated to pay the
same, or foreclose the lien against the Owner's Lot. No Owner may waive or otherwise
escape liability for the Assessments provided for herein by non-use of the Common
Elements or abandonment of his Lot. All unpaid installment payments of Assessments
shall become immediately due and payable if an Owner fails to pay any installment within
the time permitted. The Association may also establish and collect late fees for delinquent
installments.
SECTION 11. Lien for Assessments. The Association may file a lien against a Lot
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when any Assessment levied against said Lot remains unpaid for a period of 30 days or
longer.
A. The lien shall constitute a lien against the Lot when and after the claim of lien is
filed of record in the office of the Clerk of Superior Court of the county in which the Lot is
located. The Association may foreclose the claim of lien in like manner as a mortgage on
real estate under power of sale under Article 2A of Chapter 45 of the General Statutes.
Fees, charges, late charges, fines, interest, and other charges imposed pursuant to
Sections 47F-3-102,47F-3-107,47F-3-107.1 and 47F-3-115 of the Act are enforceable as
Assessments.
B. The lien under this section shall be prior to all liens and encumbrances on a Lot
except (i) liens and encumbrances (specifically including, but not limited to, a mortgage or
deed of trust on the Lot) recorded before the docketing of the claim of lien in the office of
the Clerk of Superior Court, and (ii) liens for real estate taxes and other governmental
assessments and charges against the Lot.
C. The lien for unpaid assessments is extinguished unless proceedings to enforce
the tax lien are instituted within three years after the docketing of the claim of lien in the
office of the Clerk of Superior Court.
D. Any judgment, decree, or order in any action brought under this section shall
include costs and reasonable attorneys' fees for the prevailing party.
E. Where the holder of a first mortgage or deed of trust of record, or other purchaser
of a Lot obtains title to the Lot as a result of foreclosure of a first mortgage or first deed of
trust, such purchaser and its heirs, successors and assigns shall not be liable for the
Assessments against the Lot which became due prior to the acquisition of title to the Lot by
such purchaser. The unpaid Assessments shall be deemed to be Common Expenses
collectible from all of the Lot Owners including such purchaser, its heirs, successors and
assigns.
F. A claim of lien shall set forth the name and address of the Association, the name
of the record Owner of the Lot at the time the claim of lien is filed, a description of the Lot,
and the amount of the lien claimed.
ARTICLE VI
RIGHTS OF DEVELOPER
The Declarant shall have, and there is hereby reserved to the Declarant,the Special
Declarant Rights as herein defined and the following rights, powers and privileges which
shall be in addition to the Special Declarant Rights and any other rights, powers and
privileges reserved to the Declarant herein:
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SECTION 1. The Architectural Control Committee/Executive Board. All duties and
responsibilities conferred upon the Architectural Control Committee by this Declaration or
the Bylaws of the Association shall be exercised and performed by the Declarant or its
designee, so long as Declarant shall own any Lot within the Property or any Additional
Property. The Declarant shall be entitled during the Declarant Control Period to appoint
and remove the officers and members of the Executive Board.
SECTION 2. Plan of Planned Community. The right to change, alter, add to or re-
designate the allocated planned, platted, or recorded use or designation of any of the lands
constituting the Planned Community including, but not limited to,the right to change, alter,
add to, or re-designate road, utility and drainage facilities and easements and to change,
alter, add to, or re-designate such other present and proposed amenities, Common
Elements, or facilities as may in the sole judgment and discretion of Declarant be
necessary or desirable. The Declarant hereby expressly reserves unto itself, its successors
and assigns, the right to re-plat any one (1) or more Lots shown on the plat of any
subdivision of the Property or Additional Property in order to create one or more modified
Lots;to further subdivide tracts or Lots shown on any such subdivision plat into two or more
Lots; to recombine one or more tracts or Lots or a tract and Lots to create a larger tract or
Lot(any Lot resulting from such recombination shall be treated as one Lot for purposes of
Assessments); to eliminate from this Declaration or any plats of the Planned Community
Lots that are not otherwise buildable or are needed or desired by Declarant for access or
are needed or desired by Declarant for use as public or private roads or access areas,
whether serving the Planned Community or other property owned by the Declarant or
others, or which are needed for the installation of utilities, Common Elements or amenities,
and to take such steps as are reasonably necessary to make such re-platted Lots or tracts
suitable and fit as a building site, access area, roadway or Common Elements.
SECTION 3. Amendment of Declaration by the Declarant. This Declaration may be
amended without Member approval by the Declarant, or the Board of the Association, as
the case may be, as follows:
A. In any respect, prior to the sale of the first Lot.
B. To the extent this Declaration applies to Additional Property.
C. To correct any obvious error or inconsistency in drafting, typing or
reproduction.
D. To qualify the Association or the Property and Additional Property, or
any portion thereof, for tax-exempt status.
E. To incorporate or reflect any platting change as permitted by this
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Article or otherwise permitted herein.
F. To conform this Declaration to the requirements of any law or
governmental agency having legal jurisdiction overthe Property or any Additional Property
or to qualify the Property or any Additional Property or any Lots and improvements thereon
for mortgage or improvement loans made, insured or guaranteed by a governmental
agency or to comply with the requirements of law or regulations of any corporation or
agency belonging to, sponsored by, or under the substantial control of the United States
Government or the State of North Carolina, regarding purchase or sale of such Lots and
improvements, or mortgage interests therein, as well as any other law or regulation relating
to the control of property, including, without limitation, ecological controls, construction
standards, aesthetics, and matters affecting the public health, safety and general welfare.
A letter from an official of any such corporation or agency, including,without limitation, the
Department of Veterans Affairs, U. S. Department of Housing and Urban Development,the
Federal Home Loan Mortgage Corporation, Government National Mortgage Corporation, or
the Federal National Mortgage Association, requesting or suggesting an amendment
necessary to comply with the requirements of such corporation or agency shall be sufficient
evidence of the approval of such corporation or agency, provided that the changes made
substantially conform to such request or suggestion. Notwithstanding anything else herein
to the contrary, only the Declarant, during the Declarant Control Period, shall be entitled to
amend this Declaration pursuant to this Section.
SECTION 4. Annexation of Additional Property. Declarant may annex to and make
a part of the Planned Community any other real property,whether now owned or hereafter
acquired by Declarant or others, and whether developed by the Declarant or others (the
"Additional Property"). Annexation of Additional Property to the Planned Community shall
require the assent of 67 percent of the Class A Members who are voting in person or by
proxy at a meeting called for this purpose; provided, however, Additional Property may be
annexed to the Planned Community without the assent of the Members so long as the
Additional Property is used for residential purposes and amenities related thereto.
ARTICLE VII.
USE RESTRICTIONS, ARCHITECTURAL CONTROL
AND MAINTENANCE
SECTION 1. Approval of Plans for Building and Site Improvements. No dwelling,
wall or other structure (including driveway culvert pipes and headwalls) shall be
commenced, erected, or maintained upon any Lot, nor shall any exterior addition to or
change in or alteration therein (including painting or repainting of exterior surfaces) be
made until the plans and specifications showing the nature, kind, shape, heights, materials,
colors and location of the same shall have been submitted to and approved in writing as to
harmony of external design and location in relation to surrounding structures and
topography by the Architectural Control Committee. If the Architectural Control Committee
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fails to approve or disapprove such design and location within thirty (30) days after said
plans and specifications have been submitted to it, approval will not be required and this
Article will be deemed to have been fully complied with. Refusal or approval of any such
plans, location or specification may be based upon any ground, including purely aesthetic
and environmental considerations, that in the sole and uncontrolled discretion of the
Architectural Control Committee shall be deemed sufficient. One copy of all plans and
related data shall be furnished to the Architectural Control Committee for its records. The
Architectural Control Committee shall not be responsible for any structural or other defects
in plans and specifications submitted to it or in any structure erected according to such
plans and specifications.
SECTION 2. Minimum Standards for Site Improvements.
A. Each dwelling shall have a minimum of 2,400 square feet of enclosed, heated
dwelling area; provided, however, the Architectural Control Committee may permit a
dwelling to have a minimum of 2,000 square feet if the Committee in its sole discretion finds
that the variance will not adversely impact property values within the Planned Community.
The term "enclosed, heated dwelling area" shall mean the total enclosed area within a
dwelling which is heated by a common heating system; provided, however, that such term
does not include garages, terraces, decks, open porches, and like areas.
B. Since the establishment of inflexible building setback lines for location of houses
on Lots tends to force construction of houses directly to the side of other homes with
detrimental effects on privacy, view, preservation of important trees and other vegetation,
ecological and related considerations, no specific setback lines shall be established by this
Declaration, except for a minimum side set-back from all side property lines of 20 feet. In
order to assure, however,that the foregoing considerations are given maximum effect,the
site and location of any house or dwelling or other structure upon any Lot shall be
controlled by and must be approved absolutely by the Architectural Control Committee;
provided, however, that no structure shall be constructed closer to a Lot line than is
permitted by applicable governmental regulations.
C. The exterior of all dwellings and other structures must be completed within twelve
(12) months after the construction of same shall have commenced, except where such
completion is impossible or would result in great hardship to the Owner or builder, due to
strikes, fires, national emergency, natural calamities, or the complexity of design and
construction.
D. All service utilities,fuel tanks, and wood piles are to be enclosed within a wall or
plant screen of a type and size approved by the Architectural Control Committee, so as to
preclude the same from causing an unsightly view from any highway, street or way within
the subdivision, orfrom any other residence within the subdivision. All mail and newspaper
boxes shall be uniform in design. Design for mail and newspaper boxes shall be furnished
by the Architectural Control Committee. Fences shall be permitted on any Lot; provided,
however, that the design, placement, and materials of any fence are approved by the
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Architectural Control Committee. Clothes lines are not permitted on any Lot. All driveway
culvert pipes must be installed below grade and must have headwalls.
E. Off street parking for not less than two (2) passenger automobiles must be
provided on each Lot prior to the occupancy of any dwelling constructed on said Lot which
parking areas and the driveways thereto shall be constructed of concrete, brick, asphalt, or
turf stone, or any other material approved by the Architectural Control Committee.
F. All light bulbs or other lights installed in any fixture located on the exterior of any
building or any Lot for the purpose of illumination shall be clear,white or non-frost lights or
bulbs.
G. The design of all driveway culverts shall be approved by the Declarant or the
Architectural Control Committee. Driveway culverts shall have headwalls on both ends.
SECTION 3. Use Restrictions.
A. Land Use And Building Type. No Lot shall be used for any purpose except for
residential purposes, subject, however,to the rights of the Declarant contained herein. All
numbered Lots are restricted for construction of one single-family dwelling (plus, a
detached garage, if there is not one attached to the residence, and such other accessory
buildings as may be approved by the Architectural Control Committee).
B. Nuisances. No noxious or offensive activity shall be carried on upon any Lot, nor
shall anything be done thereon which may be or may become an annoyance or nuisance to
the neighborhood. There shall not be maintained any plants or animals, nor device or thing
of any sort whose normal activities or existence are in any way noxious, dangerous,
unsightly, unpleasant or other nature as may diminish or destroy the enjoyment of other
Lots by the Owners thereof. It shall be the responsibility of each Owner to prevent the
development of any unclean, unsightly or unkept condition of buildings or grounds on the
Owner's Lot which would tend to decrease the beauty of the neighborhood as a whole or
the specific area.
C. Temporary Structures. No structure of a temporary character,trailer, basement,
tent, shack, garage, barn or other outbuilding shall be used on any Lot any time as a
residence either temporarily or permanently without the written consent of the Architectural
Control Committee.
D. Vehicles/Boats/Piers. No boat, motor boat, camper, trailer, motor or mobile
homes, tractor/trailer, or similar type vehicle, shall be permitted to remain on any Lot or on
any street at any time, without the written consent of the Association. No inoperable
vehicle or vehicle without current registration and insurance will be permitted on any Lot,
street or Common Element. The Association shall have the right to have all such vehicles
towed away at the owner's expense. No repairs to any vehicle may be mado on streets or
in driveways but only in garages or other areas and not visible from the street. A Class A
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Member-Boating shall not be entitled to build any pier or dock over the waters adjacent to
the Member's Lot.
E. Animals. No animals, livestock or poultry of any kind shall be kept or maintained
on any Lot or in any dwelling except that dogs, cats or other household pets may be kept or
maintained provided that they are not kept or maintained for commercial purposes and
provided further that they are not allowed to run free, are at all times kept properly leashed
or under the control of their owner and do not become a nuisance.
F. Statuary, TV Satellite Dishes and Outside Antennas. No yard statuary or TV
satellite signal receiving dishes are permitted on any Lot and no outside radio or television
antennas shall be erected on any Lot or dwelling unit unless and until permission for the
same has been granted by the Architectural Control Committee; provided, however,
satellite dishes not over 18" in diameter which cannot be seen from the street are
permitted.
G. Construction in Common Elements. No Person shall undertake, cause, or allow
any alteration or construction in or upon any portion of the Common Elements except at the
direction or with the express written consent of the Association.
H. Signs. No signs (including "for sale" or"for rent" signs)shall be permitted on any
Lot or in the Common Elements without permission of the Executive Board; provided,
however,the Declarant may, so long as Declarant owns any Lot, maintain for sale signs on
Declarant's Lots and maintain signs on the Common Elements advertising the Plannned
Community.
I. Subdividing. Subject to any rights reserved to the Declarant herein, no Lot shall
be subdivided, or its boundary lines changed except with the prior written consent of the
Declarant during the Declarant Control Period and thereafter by the Board of Directors.
J. Wells and Septic Tanks. The location of all wells, septic tanks orothersewerage
disposal systems must be approved by the Architectural Control Committee.
SECTION 4. Maintenance. Each Lot Owner shall keep his Lot free from weeds,
underbrush or refuse/dirt piles, or unsightly growth or objects. All structures shall be kept
neat and in good condition and repair. All shrubs, trees, grass and plantings shall be kept
neatly trimmed and properly cultivated. All septic tank drain fields shall be properly
maintained in good working order and in accordance with the rules and regulations of
applicable governmental agencies.
ARTICLE Vlll
STORMWATER PERMIT/FACILITES
SECTION 1. Stormwater Permit. The Association and each of its Members agree
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that at anytime after(i)all work required under the Stormwater Permit has been completed
(other than operation and maintenance activities), and (ii)the Developer is not prohibited
under DENR regulations from transferring the Stormwater Permit for the Planned
Community to the Association,the Association's officers wihtout any vote or approval of Lot
Owners, and within 10 days after being requested to do so,will sign all documents required
by DENR for the Stormwater Permit to be transferred to the Association; provided,
however,that at the time the Developer requests that the Association accept transfer of the
Stormwater Permit, the Developer has delivered to the Association a certificate from an
engineer licensed in the State of North Carolina, dated no more than 45 days before the
date of the request, that all stormwater retention ponds, swales and related facilities are
constructed in accordance with the plans and specifications therefore. If the Association
fails to sign the documents required by this paragraph, the Developer shall be entitled to
specific performance in the courts of North Carolina requiring that the appropriate
Association officers sign all documents necessary for the Stormwater Permit to be
transferred to the Association. Failure of the officers to sign as provided herein shall not
relieve the Association of its obligations to operate and maintain the stormwater facilities
covered by the Stormwater Permit.
SECTION 2. Stormwater Facilities O & M. Any stormwater retention ponds and
related facilities for the Planned Community which have or are to be constructed by or on
behalf of Declarant constitute Common Elements and, subject only to the provisions of
Section 3 of this Article VII, the Association, at its sole cost and expense, is responsible for
the operation and maintenance of such facilities. Such O & M shall include, but not be
limited to, compliance with all of the terms and obtaining any renewals of the Stormwater
Permit. Except as provided in Section 3 of this Article VII, the Association shall indemnify
and hold harmless the Developer form any obligations and costs under the Stormwater
Permit for operation and maintenance of the stormwater retention ponds and related
facilities.
SECTION 3. Damage to Storm Water Facilities. The Declarant shall at its sole cost
and expense be responsible for repairing any damage to storm water facilities caused by
the Developer's development activities. The Developer shall not be responsible for
damages to stormwater retention ponds and related facilities caused by any other cause
whatsoever, including but not limited to construction of residences or other activities by
Owners, their agents and contractors, upon their Lots, acts of God, and the negligence of
others. Lot Owners shall be responsible for damages to such stormwater facilities caused
by construction of buildings or other activities upon the Owner's Lot. Each Owner, shall
within 30 days after receipt of notice of damage to stormwater facilities, repair the damage
at the Owner's sole cost and expense to return them to the state required by the storm
water plans and specifications for the Planned Community. If the Lot Owner fails to do so
within said 30-day period, the Association shall perform the work and the cost of the work
shall be added to the Annual Assessment due from the Lot Owner.
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SECTION 4. Enforcement Of Storm Water Runoff Regulations.
A. The following covenants are intended to ensure ongoing compliance with
State Stormwater Management Permit Number SW8 030110, as issued by the Division
of Water Quality under NCAC 2H.1000.
B. The State of North Carolina is made a beneficiary of these covenants to the
extent necessary to maintain compliance with the stormwater management permit.
C. These covenants are to run with the land and be binding on all persons and
parties claiming under them.
D. The covenants pertaining to stormwater may not be altered or rescinded
without the express written consent of the State of North Carolina, Division of Water
Quality.
E. Alteration of the drainage as shown on the approved plan may not take place
without the concurrence of the Division of Water Quality.
F. The maximum allowable built-upon area per lot is 9,743 square feet. This
allotted amount includes any built-upon area constructed within the lot property
boundaries, and that portion of the right-of-way between the front lot line and the edge
of the pavement. Built upon area includes, but is not limited to, structures, asphalt,
concrete, gravel, brick, stone, slate, and coquina, but does not include raised, open
wood decking, or the water surface of swimming pools.
G. Filling in or piping of any vegetative conveyances (ditches, swales, etc.)
associated with the development except for average driveway crossings, is strictly
prohibited by any persons.
H. Each lot will maintain a 30' wide vegetated buffer between all impervious
areas and surface waters.
I. All roof drains shall terminate at least 30' from the mean high water mark of
surface waters.
J. Lots within CAMA's Area of Environmental Concern may have the permitted
maximum built-upon area reduced due to CAMA jurisdiction within the AEC.
ARTICLE IX.
COMMUNITY BOATING FACILITY
SECTION 1. Establishment of Facility. There is hereby established a Community
Boating Facility as defined herein. The Community Boating Facility shall constitute a part of
the Common Elements of the Development.
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SECTION 2. Use of Limited Common Elements. Each Boat Slip will be assigned
by the Declarant to a Lot pursuant to a Boat Slip Certificate in the form attached hereto as
Exhibit B. Only Lot Owners or persons renting the Lot Owner's residence shall be entitled
to use the boat slips. Title to a Boat Slip Certificate may not be separated from Lot
ownership but Boat Slips may be transferred among Lot Owners.
SECTION 3. Use Restriction. The Community Boating Facility may not be used for
more than 18 Boat Slips. Boats of 21 feet or less with no cabins or head are permitted. No
gasoline sales or other commercial activity shall be permitted. No motor vehicles or boat
trailers shall be permitted on site and access shall be limited to the Access Easements over
Lots 2, 3, 17 and 18 as shown on the above referenced plat. Notwithstanding the
foregoing, motor vehicles may use the temporary parking spaces/drop-off area constituting
apart of the Community Boating Facility. In addition to the other use restrictions contained
in this Declaration, the following use restrictions shall also apply to the Community Boating
Facility:
A. Nuisances. No noxious or offensive activity shall be carried on upon any boat,
Boat Slip or Common Area, nor shall anything be done thereon which may be or may
become an annoyance or nuisance to the neighborhood. There shall not be maintained
any plants or animals, nor device or thing of any sort whose normal activities or existence
are in anyway noxious, dangerous, unsightly, unpleasant or other nature as may diminish
or destroy the enjoyment of other Boat Slips. It shall be the responsibility of each holder of
a Boat Slip Certificate to prevent the development of any unclean, unsightly or unkept
condition of the Boat Slip or any boat using it.
B. Devices and Structures. No device, structure or other thing shall be located or
maintained on any dock or other Common Area except one dock box per Boat Slip, the
design and location of which must be approved by the Association. All fishing gear and
other marine devices and equipment when not in use shall be stored on board or in a dock
box.
C. Boats. No "tramp vessels", "derelict vessels", barges, or commercial vessels
may be moored in any Boat Slip. All boats shall be maintained in a°neat,clean, ship shape,
and seaworthy condition. No inoperable boat without current registration and insurance,
will be permitted in any Boat Slip. The Association shall have the right to have all
prohibited boats towed away and stored at the expense of the holder of the Boat Slip
Certificate. No major repairs or complete overhauls to any boat may be made at a Boat
Slip. Boats may not be used as permanent residences.
D. Signs. No signs (including "for sale" or"for rent" signs)shall be permitted on any
Boat Slip or in the Common Areas.
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E. Trash Disposal. Newspapers, magazines and other similar items must be placed
in a solid waste container. Garbage and other perishable items shall be placed in a plastic
bag secured at the top and placed in the solid waste container. Loose garbage shall not be
deposited anywhere. No trash or empty boxes of any kind shall be left on the dockways.
No one shall throw, discharge, pump or deposit from any boat or float any refuse, oil,
spirits,flammable liquid or polluting matter in the harbor. All such matter shall be deposited
at approved oil disposal facilities. Waste material such as paper, beer or drink cans,
cigarette stubs, trash, etc., must not be thrown from the boats or dock areas.
F. Dockways. Children under twelve (12) years of age are not permitted on docks
without the immediate presence of a parent or other responsible adult. Parents shall not
allow children to run and play on the dockways. Dockways shall be kept clear and
uncluttered.
G. Mooring/Storm Precautions. To prevent damage from weather or storms,
adequate mooring lines must be properly secured and maintained, and all outside property
shall be battened down, secured, or placed inside the boat. The Association may order
boats immediately removed from their slips in the event of impending hurricanes or other
storms in order to protect the docks and other Common Areas. Upon the issuance of any
such order, each holder of a Boat Slip Certificate shall immediately remove his boat from
the Boat Slip or cause any tenant using the Boat Slip to do so. Any damage caused to the
common area on account of failure to remove a boat in accordance with such order shall be
repaired by the Association at the sole cost and expense of the Boat Slip Certificate holder
failing to remove or cause the removal of the boat.
H. Guests. Every holder of a Boat Slip Certificate shall insure that his guests and
tenants abide by this Declaration and all rules and regulations and shall be responsible to
the Association for any violation. The number of guests permitted at any one time may be
limited by the Association.
I. Fish Cleaning. Fish cleaning of any kind will not be permitted at the Development
except at a place or places designated by the Board of Directors.
J. Operation of Engines. Unnecessary operation of engines in slips is not permitted.
Engines may not be operated in gear while boats are moored.
K. Water/Power Lines and Connections. Water or power lines shall not be left
unattended across main walks. All connections to electrical receptacles shall be with
marine grade cords only. All accessory cords shall be maintained in a good,safe operating
condition. Frayed cords shall promptly be replaced at the Boat Slip Certificate holder's
expense.
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L. Speed Limit. The speed limit within the Community Boating Facility shall be dead
slow, or wakeless speed. whichever is slower.
M. Animals. Animals shall be leashed at all times when on the premises. No
animals shall be tied to any part of the dock, including fingers or dock boxes. Animals shall
be physically kept on board at all times. The owner of an animal is responsible for cleaning
up pet feces and urine.
N. Alterations. No part of the docks, utility posts or any other Common Area may be
altered in anyway.
O. Safety and Compliance with Law. All persons using the facilities shall do so
lawfully and in such fashion as to maintain and preserve those facilities and the Common
Area. Each person shall be responsible for his/her own conduct and safety. All persons
shall comply with all applicable governmental ordinances.
SECTION 4. Profits. Notwithstanding that the Boat Slip Certificates are issued by
the Association, the proceeds, if any,from the initial sale or transfer of Boat Slip Certificates
shall belong to and be the sole property of the Developer. When requested to do so by the
Developer, the Association will issue Boat Slip Certificates without charge. The Association
shall not issue any initial Boat Slip Certificate except at the direction of the Developer.
SECTION 5. Transfer of Certificate. Upon the transfer of a Boat Slip Certificate,the
transferring holder shall surrender the applicable Certificate to the Association and a new
Certificate shall be issued by the Association to the new holder. The Association shall be
entitled to charge a reasonable administrative fee for handling the transfer.
ARTICLE X
LOTS SUBJECT TO DECLARATION/ENFORCEMENT
SECTION 1. Lots Subject to Declaration. The covenants and restrictions contained
in this Declaration are for the purpose of protecting the value and desirability of the Planned
Community and the Lots. All present and future Owners, tenants and occupants of Lots
and their guests or invitees, shall be subject to, and shall comply with the provisions of the
Declaration, and as the Declaration may be amended from time to time. The acceptance of
a deed of conveyance or the entering into of a lease or the entering into occupancy of any
Lot shall constitute an agreement that the provisions of the Declaration are accepted and
ratified by such Owner, tenant or occupant. The covenants and restrictions of this
Declaration shall run with and bind the land and shall bind any person having at any time
any interest or estate in any Lot, their heirs; successors and assigns, as though such
provisions were made a part of each and every deed of conveyance or lease, for a term of
twenty(20)years from the date this Declaration is recorded, after which time they shall be
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Ball
automatically extended for successive periods of ten (10)years, unless terminated by the
Lot Owners.
SECTION 2. Enforcement and Remedies. The covenants and restrictions of this
Declaration shall inure to the benefit of and be enforceable (by proceedings at law or in
equity) by the Association, or the Owner of any Lot, their respective legal representatives,
heirs, successors and assigns. The Executive Board shall be entitled to enforce its Articles
of Incorporation, Bylaws and Rules and Regulations. In addition to the remedies otherwise
provided for herein concerning the collection of Assessments,the following remedies shall
be available:
A. Association to Remedy Violation. In the event an Owner(or other occupant of a
Lot) is in violation of or fails to perform any maintenance or other activities required by this
Declaration, the Association's Bylaws, Charter or Rules and Regulations, the Executive
Board, after 30-days notice, may enter upon the Lot and remedy the violation or perform
the required maintenance or other activities, all at the expense of the Owner. The full
amount of the cost of remedying the violation or performing such maintenance or other
activities shall be chargeable to the Lot, including collection costs and reasonable
attorneys' fees. Such amounts shall be due and payable within 30 days after Owner is
billed. If not paid within said 30 day period, the amount thereof may immediately be added
to and become a part of the Annual Assessment levied against said Owner's Lot. In the
event that any maintenance activities are necessitated to any Common or Limited Common
Elements by the willful act or active or passive negligence of any Owner, his family, guests,
invitees or tenants, and the cost of such maintenance, repair or other activity is not fully
covered by insurance, then, at the sole discretion of the Board of Directors, the cost of the
same shall be the personal obligation of the Owner and if not paid to the Association upon
demand, may immediately be added to and become a part of the Annual Assessment
levied against said Owner's Lot.
B. Fines. The Association may in accordance with the procedures set forth in the
Act establish a schedule of and collect fines for the violation of this Declaration or of the
Association's Articles of Incorporation, Bylaws or Rules and Regulations. If an Ownerdoes
not pay the fine when due,the fine shall immediately become a part of and be added to the
Annual Assessment against the Owner's Lot and may be enforced by the Association as all
other Assessments provided for herein.
C. Suspension of Services and Privileges. The Association may in accordance with
the procedures set forth in the Act suspend all services and privileges provided by the
Association to an Owner(other than rights of access to Lots)for any period during which
any Assessments against the Owner's lot remain unpaid for at least 30 days or for any
period that the Owner or the Owner's Lot is otherwise in violation of this Declaration or the
Association's Charter, Bylaws, or Rules and Regulations.
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SECTION 3. Miscellaneous. Failure by the Association or by an Owner to enforce
any covenant or restriction herein contained shall in no event be deemed a waiver of the
right to do so thereafter. The remedies provided herein are cumulative and are in addition
to any other remedies provided by law.
ARTICLE XI
GENERAL PROVISIONS
SECTION 2. Rights of Institutional Note Holders. Any institutional holder of a first
lien on a Lot will, upon request, be entitled to (a) inspect the books and records of the
Association during normal business hours, (b) receive an annual audited financial
statement of the Association within ninety (90) days following the end of its fiscal year, (c)
receive written notice of all meetings of the Association and right to designate a
representative to attend all such meetings, (d) receive written notice of any condemnation
or casualty loss that affects either a material portion of the Planned Community or the
property securing its loan, (e)receive written notice of any sixty-day(60)delinquency in the
payment of Assessments or charges owed by any Owner of any property which is security
for the loan, (f)receive written notice of a lapse, cancellation,or material modification of any
insurance policy or fidelity bond maintained by the Association, (g)receive written notice of
any proposed action that requires the content of a specified percentage of mortgage
holders, and (h) be furnished with a copy of any master insurance policy.
SECTION 3. Utility Service. Water and Sewer for the Planned Community shall be
by private well and septic system. The Declarant reserves the right to subject the Planned
Community to a contract with Progress Energy Carolinas for the installation of street
lighting requiring a continuing monthly payment to Progress Energy Carolinas by each Lot
Owner.
SECTION 4. Severability. Invalidation of any one of these covenants or restrictions
by judgment or court order shall in no way affect any other provisions which shall remain in
full force and effect.
SECTION 5. Amendment of Declaration. Except in cases of amendments that may
be executed by the Declarant under this Declaration or by certain Lot Owners under
Section 47F-2-118(b) of the Act, this Declaration may be amended by affirmative vote or
written agreement signed by Owners of Lots to which at least sixty-seven percent(67%)of
the votes in the Association are allocated, or by the Declarant if necessary for the exercise
of any Special Declarant Right or development or other right reserved to the Declarant
herein.
SECTION 6. FHA/VA Approval. So long as there is Class B membership,
annexation of Additional Properties, dedication of Common Elements and amendments to
this Declaration must be approved by the Federal Housing Administration and/or the
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Department of Veterans Affairs, as the case may be, if either of those agencies has
approved the making, insuring or guaranteeing of mortgage loans within the Planned
Community.
SECTION 7. North Carolina Planned Community Act. It is the intent of the
Declarant to comply with the requirements imposed on the Planned Community by the Act
and to the extent any of the terms of this Declaration violate the Act, the terms of the Act
shall control.
IN TESTIMONY WHEREOF, Declarant has caused this Declaration to be
signed in its corporate name by its president pursuant to authority of Declarant's Board of
Directors as of the day and year first above written.
UNIVERSITY GROUP, INC
By: bU44
President
STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
I, V. M. Strachan, a Notary Public of the county and state aforesaid, certify that
TERRY F. TURNER personally appeared before me this day and
acknowledged that he is President of UNIVERSITY GROUP, INC., and further
acknowledged the due execution of the foregoing instrument on behalf of the
corporation. Witness my hand and official stamp or seal, this 8t' day of July, 2004.
. �
N tary Public
My commission expires:
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DECOFCOVENANTSMOC-vms

p pp EXHIBIT A
Legal Description for the Easement to Lot No. 4, Waters Edge at Deerfield
Located in Topsail Township,Pender County, North Carolina and beginning at an iron
rod set in the western right of way line of Waters Edge Drive where it is intersected by
the western line of Lot No. 3 and the eastern line of Lot No. 4,Waters Edge at Deer
Field. Running thence, from the said point of beginning and with the western right of
way line of Waters Edge Drive as it curves to the left, South 46 degrees 12 minutes 09
seconds East— 12.42' chord distance(Delta= 14P16'16", Tangent=6.26', Radius=
50.00')to a point on the edge of the asphalt pavement; thence,with the edge of the
asphalt pavement, the following courses: South 19 degrees 30 minutes 26 seconds West
— 13.29 feet, South 09 degrees 12 minutes 17 seconds East— 10.61 feet, South 27 degrees
22 minutes 37 seconds East—9.39 feet, South 37 degrees 38 minutes 53 seconds East—
41.44 feet, South 36 degrees 14 minutes 58 seconds East—29.92 feet, and South 37
degrees.23 minutes 32 seconds East—33.33 feet to a point on the edge of the asphalt;
thence,South 55 degrees 27 minutes 35 seconds West— 15.27 feet to an iron rod at the
southeast corner of Lot No. 4; thence, with the dividing line of Lot No. 3 and Lot No 4,
North 36 degrees 39 minutes 00 seconds West— 100.26 feet to an iron rod; thence, with
the said dividing line of Lot No. 3 and Lot No. 4 as it curves to the right,North 12
degrees 35 minutes 52 seconds West—24.54 few chord distance(Delta=48°14'48",
Tangent= 13.43', Radius=30.09-to an irgn rod; thence,North 08 degrees 12 minutes
47 seconds East—27.92 feet to the point of beginning,.containing 1970 square feet and
.being that area of Lot No. 3 lying west of the existing asphalt pavement and adjacent to
andt east.of. e.eastern lot line-of Lot No. 4, Waters Edge at Deerfield:
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NORTH CAROUNA- PENDER COMM.- The foregoing
(or annex catificate of" ab
certified to be correct This 8 day of A.D.20 0
JOY SWI EGOOD Pander County Re star of Deeds
B eputy ! p_
Register of Deeds

EXHIBIT B
BK2426PG218
BOAT SLIP CERTIFICATE
of
WATERS EDGE COMMUNITY BOATING FACILITY
Issued by
Waters Edge HOA, Inc.
A NON-PROFIT CORPORATION
INCORPORATED UNDER THE LAWS OF THE STATE OF NORTH CAROLINA
THIS CERTIFIES THAT (the "Holder") is
the holder of one (1) Boat Slip Certificate (the "Certificate")for the Community Boating Facility at
Waters Edge at Deerfield (the "Facility"). The Certificate shall be held and transferred in
accordance with the Declaration of Covenants, Conditions and Restrictions for Waters Edge at
Deerfield recorded in Book , at Page , of the Pender County Registry(the
"Declaration"), and the Association's Articles of Incorporation, Bylaws and Rules and
Regulations, as they may be amended from time to time.
This Certificate shall entitle the Holder to exclusive use and enjoyment of Boat Slip
�) of the Community Boating Facility, as identified upon the records of the undersigned.
This Certificate may be transferred only to the owners of a Lot within Waters Edge at
Deerfield.
The Holder acknowledges by acceptance of this Certificate that the Community Boating
Facility has not been constructed. University Group, Inc., the Developer as described in the
Declaration, covenants and agrees with the Holder to construct the Community Boating Facility
with reasonable dispatch generally in accordance with the plans therefore by Arnold W. Carson,
PLSPC, dated March 3, 2003 and entitled "Proposed Dock Facility for Water's Edge At
Deerfield", consisting of 5 sheets. A letter of credit in the amount of$300,000.00 has been
posted with Pender County to cover the cost of the project.
IN WITNESS WHEREOF, the Association has caused this Certificate to be signed
by its duly authorized officer.
DATED: WATERS EDGE HOA, INC.
By:
President
UNIVERSITY GROUP, INC
By:
President