SW8070816_Current Permit_20160929

PAT McCRORY
Governor
DONALD R. VAN DER VAART
Secretary
Energy,Mineral& TRACY DAVIS
land Resources Director
ENVIRONMENTAL QUALITY •
September 29,2016
Edward H. Clark,Manager
Bill Clark Homes of Wilmington,LLC
127 Racine Drive, Suite 201
Wilmington,NC 28403
Subject: Permit Renewal
State Stormwater Management Permit No. SW8 070816
Middle Creek Subdivision
Brunswick County
Dear Mr.Clark:
Effective August 1,2013 the State Stormwater program has been transferred from the Division of Water
Quality(DWQ)to the Division of Energy,Mineral and Land Resources(DEMLR). All previous references to
DWQ will remain in older stormwater permits issued prior to August 1,2013 until they are modified. Please
note that this permit will now reference DEMLR as the Division responsible for issuance of the permit.
On August 5, 2009,the Governor signed Session Law 2009-406. This law impacted any development
approval issued by the former Division of Water Quality under Article 21 of Chapter 143 of the General
Statutes,which was current and valid at any point between January 1,2008,and December 31,2010. The
law extended the effective period of any stormwater permit that was set to expire during this time frame
to three(3)years from its current expiration date. On August 2, 2010,the Governor signed Session Law
2010-177,which granted an extra year for a total of four(4)years extension. Accordingly,this permit,
which was set to expire on October 12,2017, shall now be effective from the date of issuance until
October 12,2021,which includes all available extensions.
The Wilmington Regional Office received a complete 8 year Stormwater Management Permit Renewal
Application for Middle Creek Subdivision on August 19,2016.The Division is hereby notifying you that
permit SW8 070816 has been renewed on September 29,2016,and shall be effective until October 12,2029.
For your records,please find enclosed a renewed,updated,and re-issued permit and a copy of the renewal
application. Please keep this permit on file at all times. Please note that the renewed,updated, and re-issued
permit does not impose new or different terms;it merely restates some of the previous terms to provide you
with a better understanding of your obligations under the permit.
The renewal and reissuance of this stormwater permit does not imply that the site is currently in compliance
with the terms and conditions of this state stormwater permit. The plans originally approved on October 12,
2007,will remain in full force and effect in accordance with the regulations set forth in Title 15A NCAC
2H.1000 effective September 1, 1995.
This permit is subject to the conditions and limitations as specified therein. Please pay special attention to the
conditions listed in this permit regarding the Operation and Maintenance of the BMP(s),recordation of deed
restrictions,procedures for changes of ownership,transferring the permit,and renewing the permit. Failure to
establish an adequate system for operation and maintenance of the stormwater management system,to record
deed restrictions,to transfer the permit, or to renew the permit,will result in future compliance problems.
If any parts,requirements,or limitations contained in this permit are unacceptable,you have the right to
request an adjudicatory hearing by filing a written petition with the Office of Administrative Hearings(OAH).
The written petition must conform to Chapter 150B of the North Carolina General Statutes, and must be filed
with the OAH within thirty(30)days of receipt of this permit. You should contact the OAH with all questions
regarding the filing fee(if a filing fee is required)and/or the details of the filing process at 6714 Mail Service
Center,Raleigh,NC 27699-6714, or via telephone at 919-431-3000,or visit their website at
www.NCOAH.com.Unless such demands are made this permit shall be fmal and binding.
State of North Carolina Environmental Quality I Energy,Mineral and Land Resources
Wilmington Regional Office 1127 Cardinal Drive Extension I Wilmington,NC 28405
910 796 7215

State Stormwater Permit No. SW8 070816
Page 2 of 2
If you have any questions,need additional copies of the permit or approved plans,please contact Christine Hall
at(910)796-7215.
Sincerely,
Tracy Davis,P.E.,Director
Division of Energy,Mineral and Land Resources
GDS/canh: \\\Stormwater\Permits&Projects\2007\070816 HD12016 09 permit 070816
cc: Branch Smith,Paramounte Engineering
Wilmington Regional Office
State of North Carolina Environmental Quality I Energy,Mineral and Land Resources
Wilmington Regional Office 1127 Cardinal Drive Extension I Wilmington,NC 28405
910 796 7215

State Stormwater Management Systems
Permit No. SW8 070816
STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENTAL QUALITY
DIVISION OF ENERGY, MINERAL AND LAND RESOURCES
STATE STORMWATER MANAGEMENT PERMIT
HIGH DENSITY SUBDIVISION 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
Bill Clark Homes of Wilmington, LLC
Middle Creek Subdivision
Village Point Road (NCSR 1145) and Bay Road, Shallotte, Brunswick County
FOR THE
construction, operation and maintenance of one (1) wet detention pond 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 Energy, Mineral and Land
Resources (hereafter referred to as the Division or DEMLR) and considered a part of this
permit.
This permit shall be effective from the date of issuance until October 12, 2029 and shall be
subject to the following specified conditions and limitations:
I. DESIGN STANDARDS
1. This permit is effective only with respect to the nature and volume of stormwater
described in the application and other supporting data.
2. This stormwater system has been approved for the management of stormwater runoff
as described in Section 1.5 of this permit. The subdivision is permitted for 114 lots,
each allowed a maximum of 5,000 square feet of built-upon area.
3. Approved plans and specifications for this project are incorporated by reference and
are enforceable parts of the permit.
4. The runoff from all built-upon area within the permitted drainage area of this project
must be directed into the permitted stormwater control system.
Page 1 of 7

State Stormwater Management Systems
Permit No. SW8 070816
5. The following design elements have been permitted for this wet detention pond
stormwater facility, and must be provided in the system at all times.
a. Drainage Area, acres: 56.36
Onsite, ft2: 2,455,042
Offsite, ft2: 0
b. Total Impervious Surfaces, ft2: 829,777
114 Lots at 5,000 ft2: 570,000
Roads/Parking, ft2: 179,871
Other, ft2: 79,906
Offsite, ft2: 0
c. Average Pond Depth, feet: 6.0
d. TSS removal efficiency: 90%
e. Design Storm, inches: 1
f. Permanent Pool Elevation, FMSL: 15.0
g. Permitted Surface Area @PP, ft2: 233,476
h. Permitted Storage Volume, ft3: 238,467
i. Storage Elevation, FMSL: 16.0
j. Controlling Orifice: 4"0 pipe
k. Permanent Pool Volume, ft3 : 2,106,244
I. Forebay Volume, ft3: 44,053
m. Maximum Fountain Horsepower: 3
n. Receiving Stream / River Basin: Middle Dam Creek / LBR59
o. Stream Index Number: 15-25-2-13
p. Classification of Water Body: "SC HQW'
II. SCHEDULE OF COMPLIANCE
1. No person or entity, including the permittee, shall alter any component of the approved
stormwater system shown on the approved plans unless and until the Division has
approved of the revised plan.
2. The permittee is responsible for verifying that the proposed built-upon area for the
entire lot does not exceed the maximum allowed by this permit. Once the lot transfer is
complete, the built-upon area may not be revised without approval from the Division,
and responsibility for meeting the built-upon area limit is transferred to the individual
property owner.
3. If an Architectural Review Board or Committee is required to review plans for
compliance with the BUA limit, the plans reviewed must include all proposed built-upon
area. Any approvals given by the Board do not relieve the homeowner of the
responsibility to maintain compliance with the permitted BUA limit.
4. 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.
5. The stormwater management system shall be constructed in its entirety, vegetated
and operational for its intended use prior to the construction of any built-upon surface.
6. All stormwater collection and treatment systems must be located in either dedicated
common areas or recorded easements. The final plats for the project will be recorded
showing all such required easements, in accordance with the approved plans.
Page 2 of 7

State Stormwater Management Systems
Permit No. SW8 070816
7. 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 the approved plans, regardless of size.
b. Project name change.
c. Transfer of ownership.
d. Redesign or addition to the approved amount of built-upon area.
e. Further subdivision, acquisition, or sale of all or part of the project area. The
project area is defined as all property owned by the permittee, for which
Sedimentation and Erosion Control Plan approval or a CAMA Major permit was
sought.
f. Filling in, altering, or piping of any vegetative conveyance shown on the
approved plan.
8. The Director may determine that other revisions to the project should require a
modification to the permit.
9. During construction, erosion shall be kept to a minimum and any eroded areas of the
system will be repaired immediately.
10. Upon completion of construction, prior to issuance of a Certificate of Occupancy, and
prior to operation of this permitted facility, a certification must be received from an
appropriate designer for the system installed certifying that the permitted facility has
been installed in accordance with this permit, the approved plans and specifications,
and other supporting documentation. Any deviations from the approved plans and
specifications must be noted on the Certification.
11. If the stormwater system was used as an Erosion Control device, it must be restored
to design condition prior to operation as a stormwater treatment device, and prior to
occupancy of the facility.
12. Permanent seeding requirements for the stormwater control must follow the guidelines
established in the North Carolina Erosion and Sediment Control Planning and Design
Manual.
13. The permittee shall at all times provide the operation and maintenance necessary to
assure that all components of the permitted stormwater system function at design
condition. The approved Operation and Maintenance Agreement is incorporated by
reference into this permit and must be followed in its entirety and maintenance must
occur at the scheduled intervals.
14. Records of maintenance activities must be kept and made available upon request to
authorized personnel of Division. The records will indicate the date, activity, name of
person performing the work and what actions were taken.
15. Prior to the sale of any lot, the following deed restrictions must be recorded:
a. The following covenants are intended to ensure ongoing compliance with State
Stormwater Management Permit Number SW8 070816, as issued by the
Division of Energy, Mineral and Land Resources 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 Division.
e. Alteration of the drainage as shown on the approved plans may not take place
without the concurrence of the Division.
Page 3 of 7

State Stormwater Management Systems
Permit No. SW8 070816
f. The maximum built-upon area per lot is 5,000 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, coquina and parking areas, but does not
include raised, open wood decking, or the water surface of swimming pools.
g. All runoff on the lot must drain into the permitted system. This may be
accomplished through providing roof drain gutters, which drain to the street,
grading the lot to drain toward the street, or grading perimeter swales and
directing them into the pond or street. Lots that will naturally drain into the
system are not required to provide these measures.
h. Built-upon area in excess of the permitted amount will require a permit
modification.
16. A copy of the recorded deed restrictions must be submitted to the Division within 30
days of the date of recording the plat, and prior to selling lots. The recorded copy must
contain all of the statements above, the signature of the Permittee, the deed book
number and page, and the stamp/signature of the Register of Deeds.
17. Prior to transfer of the permit, the stormwater facilities will be inspected by Division
personnel. The facility must be in compliance with all permit conditions. Any items not
in compliance must be repaired or replaced to design condition prior to the transfer.
Records of maintenance activities performed to date will be required.
18. Decorative spray fountains will be allowed in the stormwater treatment system, subject
to the following criteria:
a. The fountain must draw its water from less than 2' below the permanent pool
surface.
b. Separated units, where the nozzle, pump and intake are connected by tubing,
may be used only if they draw water from the surface in the deepest part of the
pond.
c. The falling water from the fountain must be centered in the pond, away from the
shoreline.
d. The maximum horsepower for the fountain's pump is based on the permanent
pool volume. The maximum pump power for a fountain in this pond is 3 HP.
19. The facilities shall be constructed in accordance with the conditions of this permit, the
approved plans and specifications, and other supporting data.
III. GENERAL CONDITIONS
1. Any individual or entity found to be in noncompliance with the provisions of a
stormwater management permit or the Stormwater rules is subject to enforcement
procedures as set forth in NCGS 143 Article 21.
2. 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.
3. The permittee is responsible for compliance with all of the terms and conditions of this
permit until such time as the Director approves the transfer request. Neither the sale
of the project, in whole or in part, nor the conveyance of common area to a third party
constitutes an approved transfer of the stormwater permit.
Page 4 of 7

State Stormwater Management Systems
Permit No. SW8 070816
4. This permit is not transferable to any person or entity except after notice to and
approval by the Director. The permittee shall submit a completed and signed
Name/Ownership Change Form, accompanied by the supporting documentation as
listed on the form, to the Division of Energy, Mineral and Land Resources at least 60
days prior to any one or more of the following events:
a. An ownership change including the sale or conveyance of the project area in
whole or in part, except in the case of an individual lot sale that is made subject
to the recorded deed restrictions;
b. The sale or conveyance of the common areas to a Homeowner's or Property
Owner's Association, subject to the requirements of Session Law 2011-256;
c. Bankruptcy;
d. Foreclosure, subject to the requirements of Session Law 2013-121,
e. Dissolution of the partnership or corporate entity, subject to NCGS 57D-2-01(e)
and NCGS 57D-6-07;
f. A name change of the current permittee;
g. A name change of the project;
h. A mailing address change of the permittee;
5. In the event that the facilities fail to perform satisfactorily, including the creation of
nuisance conditions, the Permittee shall take immediate corrective action, including
those as may be required by this Division, such as the construction of additional or
replacement stormwater management systems.
6. The permit issued shall continue in force and effect until modified, revoked,
terminated, or renewed. The permit may be modified, revoked and reissued or
terminated for cause. The filing of a request for a permit modification, revocation and
re-issuance or termination does not stay any permit condition.
7.. Permittee grants permission to staff of the Division to access the property for the
purposes of inspecting the stormwater facilities during normal business hours.
8. A copy of the approved plans and specifications shall be maintained on file by the
Permittee for a minimum of ten years from the date of the completion of construction.
9. 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 Session Law 2006-246, Title
15A NCAC 2H.1000, and NCGS 143-215.1 et.al.
10. The permittee shall submit a permit renewal application request at least 180 days prior
to the expiration date of this permit. The renewal request must include the appropriate
application, documentation and the processing fee.
Permit renewed and re-issued this the 29th day of September 2016.
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
Qacseil
racy Wks,
is, P.E., Director
Division of Energy, Mineral and Land Resources
By Authority of the Environmental Management Commission
Permit Number SW8 070816
Page 5 of 7

State Stormwater Management Systems
Permit No. SW8 070816
Middle Creek Subdivision Page 1 of 2
Stormwater Permit No. SW8 070816
Brunswick County
Designer's Certification
as a duly registered in the
State of North Carolina, having been authorized to observe (periodically/weekly/full time) the
construction of the project,
(Project)
for (Project Owner) hereby state that, to the best
of my abilities, due care and diligence was used in the observation of the project construction
such that the construction was observed to be built within substantial compliance and intent
of the approved plans and specifications.
The checklist of items on page 2 of this form is a part of this Certification.
Noted deviations from approved plans and specifications:
SEAL
Signature
Registration Number
Date
Page 6 of 7

State Stormwater Management Systems
Permit No. SW8 070816
Certification Requirements: Page 2 of 2
1. The drainage area to the system contains approximately the permitted acreage.
2. The drainage area to the system contains no more than the permitted amount
of built-upon area.
3. All the built-upon area associated with the project is graded such that the runoff
drains to the system.
4. All roof drains are located such that the runoff is directed into the system.
5. The outlet/bypass structure elevations are per the approved plan.
6. The outlet structure is located per the approved plans.
7. Trash rack is provided on the outlet/bypass structure.
8. All slopes are grassed with permanent vegetation.
9. Vegetated slopes are no steeper than 3:1.
10. The inlets are located per the approved plans and do not cause short-circuiting
of the system.
11. The permitted amounts of surface area and/or volume have been provided.
12. Required drawdown devices are correctly sized per the approved plans.
13. All required design depths are provided.
14. All required parts of the system are provided, such as a vegetated shelf, a
forebay, and the vegetated filter.
15. The required dimensions of the system are provided, per the approved plan.
cc: NCDEQ-DEMLR Regional Office
Brunswick County Building Inspections
Page 7 of 7

Date DEMLR USE ONLY
c ved Fee Pal Permit Number
`�/l9 45a6"° --7 //74ef
State of North Carolina
Department of Environment and Natural Resources
Division of Energy Mineral and Land Resources
(NCDENR DEMLR)
STORMWATER MANAGEMENT PERMIT RENEWAL APPLICATION FORM
This form may be photocopied for use as an original
This form is to be completed by the current permit holder pursuant to Title 15A NCAC 2H.1003(h)(2).This states
that stormwater management permits,issued for projects that require the construction of engineered stormwater
control measures(High Density Permits),shall be required to submit an application to renew the permit 180 days
prior to expiration of the permit.Renewed permits are valid for a period of 8 years per Session Law 2011-398(SB
781)Section 60. (c).
I. SUBMITTAL REQUIREMENTS
Only complete application packages will be accepted and reviewed by the North Carolina Department of
Environment and Natural Resources(NCDENR)Division of Energy Mineral and Land Resources (DEMLR). A
complete package includes all of the items listed below. The complete application package should be
submitted to the appropriate DEMLR Regional Office. (The appropriate office may be found by clicking on the
interactive online map at http://portal.ncdenr.org/web/guest/regional-offices.Copies of the original permit can be
obtained from the Regional Office of the Division of Energy,Mineral and Land Resources.)
This Renewal is for STORMWATER PERMIT#:SW 8 070816
Please check which of the following permit renewal scenarios apply. initial in the spaces provided that you have
provided the required information.
® A.Renewal Only:
-$505 fee
-Renewal Form-Sign and complete all sections (send original&1 copy)
-Recorded Documents Required By Permit:Deed restrictions,covenants,condominium/planned
community declaration&easements(if not already submitted to NCDENR DEMLR). Copies are
acceptable.
-Designer's Certification(if required by permit and not already received by NCDENR DEMLR) (See the
last page of your permit for a copy of the certification form.)
-I Have a Copy of the Current Operation and Maintenance Agreement(O&M): Please Keep this on File
with your permit.
-I Do Not Have a Copy of the Current O&M:Initial This Line to Request a copy. (If NCDENR DEMLR
does not have a copy on file, then you will be notified to submit a new 0 . E I V E
❑ B.Renewal and Modification: . AUG 1 9 2016
-$505 Fee and Pages 1 &2 of this Renewal Form
-SWU-101 Application Form (http://portal.ncdenr.org/web/wq/ws/su/stcBdkw n . dnrr
-Recorded Documents Required By Permit:Deed restrictions, covenants,condominium/planned
community declaration&easements(if not already submitted to NCDENR DEMLR). Copies are
acceptable.
-Under#II. 1. on SWU-101 Application Form—Check Box for Modification w/Renewal
-Designer's Certification(if required by permit and not already received by NCDENR DEMLR)(See the
last page of your permit for a copy of the certification form.)
-O&M Agreement(http://portal.ncdenr.org/web/wq/ws/su/bmp-manual)
Form SWU-102(Renewal Form) Rev.Oct. 31,2013 Page 1 of 4

❑ C.Renewal and Either: 1.)Permit Transfer to a New Permittee,or 2.) Project Name Change:
Please submit all items in I.A,and:
Request a NCDENR DEMLR site inspection if transferring permit to new property owner.
Submit One of the Two Following Forms below(forms available at http://portal.ncdenr.org/web/lr/state-
stormwater-forms docs).
1. HOA Name/Ownership Change Form: For planned communities(per Chapter 47C or
Chapter 47F of the General Statutes)
2. Name/Ownership Change Form: For all other transfers
Please make sure all required information is submitted with the Name/Ownership Change form(as
stated in each of the available forms)and that all required signatures and initials are filled in properly.
Otherwise the name change or transfer can not be processed and the original owner will remain as the
permit holder.
❑ D.Renewal,Modification,and Transfer(or Name Change): Please submit pages 1 and 2 of this
Renewal form along with all items listed in I.B. and C.above(check this box and initial items in B.
&C.that you are submitting to NCDENR DEMLR).
II. APPLICANT'S CERTIFICATION
Note:The legally responsible party is the current permittee and/or the legally responsible representative until such time that the permit is
officially transferred through a request to DEMLR by the permittee.
I, (print or type name of permittee or person legally responsible for the permit) Bill Clark Homes of Wilmington,LLC ,
certify that I have a copy of the DEMLR Approved Permit and O&M Agreement on-site(OR I have obtained a copy
from DEMLR and it will be kept on site), that I am responsible for the performance of the maintenance procedures
and the site has been,and will be,maintained according to the 0&M Agreement. I agree to notify DEMLR of any
problems with the system and prior to any changes to the system or changes in ownership I will (or have through
this renewal application)notify NCDENR DEMLR and submit the proper forms to modify or transfer the permit.
All information providgO,on this permit renewal application is,to the best of my knowledge,correct and complete.
Permittee Title: t r L Aim.,c✓L
Address:127 Racine Drive,Suite 201,Wilmington,NC 28403
Phone:(910)350 44 QC----)
/�y
Signature: ` Date: t� . r 7 . 0`
„......a.
NOTARIZATION:
I, --TiOs.0 - 'c'o\&. ,a Notary Public for the State of 1` 0 1 (..CP,X0Vf .—
County of '14.4Z\\Oenu Q if , do hereby certify that l�VuCAY A l kNAL
personally appeared before me this day of pc1f. , So We ,and acknowledge the due execution of the
forgoing stormwater BMP maintenance requirements.Witness my hand and official seal,
My commission expires: . \ o c`1.Q
Notary Signature: eA r Date:{:\ \`l fb‘ Q
flE GE iv E e `1s'-
�TAgy�
..
AUG 9 '~
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_la j uB1.\O
BY: "'-,,y,9ti0 oJ ,,,�:
'e1 DER GOO
Form SWU-102(Renewal Form) Rev.Oct.31,2013 Page 2 of 4

III. , GENERAL INFORMATION
1: Stormwater Management Permit Number: SW8 070816
2. Permit Holder's name(specify the name of the corporation,individual,etc.):
Bill Clark Homes of Wilmington,LLC
3. Print Owner/Signing Officials name and title(person legally responsible for permit):
4. Mailing Address for person listed in item 2 above:
127 Racine Drive,Suite 201
City:Wilmington State:NC Zip:28403
Phone: (910 ) 350-1744 Fax: ( )
Email:
5. Project Name:Middle Creek Subdivision
6. Location of Project(street address):
Village Point Road and Bay Road
City:Shallotte County:Brunswick Zip:
7. Directions to project(from nearest major intersection):
Village Point Road and Bay Road
flECEIvEJr%
AUG 19 2016
BY:
Form SWU-102 (Renewal Form) Rev. Oct.31,2013 Page 3 of 4

IV. • PERMIT INFORMATION:
1. Specify the type of stormwater treatment: ['Constructed Wetland ❑Bioretention ®Wet Detention Pond
['Dry Detention Basin❑Infiltration Basin ['Infiltration Trench ❑Sand Filter ❑Other:
2. If any changes were made to the original DEMLR approved project list them in the space below (attach additional
pages if needed and provide"As-Built" drawings with this application). If major changes have been made to your
project please request a plan revision or modification of the permit and submit"As Built" drawings along with a
final or updated stormwater system engineer certification(if not already provided to NCDENR). DEMLR Engineer
and Designer Certification Forms are available from each NCDENR DEMLR Regional Office.
flECEIvE
WU6 19 2016
BY:
Form SWU-102(Renewal Form) Rev.Oct. 31,2013 Page 4 of 4

/0-f/- zoo?
Permit No.56U?'67O81(o
(to be provided by DWQ)
State of North Carolina
Department of Environment and Natural Resources
Division of Water Quality
STORMWATER MANAGEMENT PERMIT APPLICATION FORM
WET DETENTION BASIN SUPPLEMENT
This form may be photocopied for use as an original
DWQ Stormwater Management Plan Review:
A complete stormwater management plan submittal includes a wet detention basin supplement for each basin,
design calculations, plans and specifications showing all basin and outlet structure details, and a fully executed
operation and maintenance agreement.
I. PROJECT INFORMATION(please complete the following information):
Project Name: Middle Creek Subdivision
Contact Person: Tim Clinkscales, PE Phone Number: (910)-791-6707
For project with multiple basins, specify which basin this worksheet applies to:
Elevations
Basin Bottom Elevation 4.00 ft. (floor of the basin)
Permanent Pool Elevation 15.00 ft. (elevation of the orifice)
Temporary Pool Elevation 16.00 ft. (elevation of the discharge structure overflow)
Area
Permanent Pool Surface Area 233,476 sq. ft. (water surface area at the orifice elevation)
Drainage Area 56.36 ac. (on-site and off-site drainage to the basin)
Impervious Area 19.05 ac. (on-site and off-site drainage to the basin)
Volumes
Permanent Pool Volume 2,106,244 cu. ft. (combined volume of main basin and forebay)
Temporary Pool Volume 238,467 cu. ft. (volume detained above the permanent pool)
Forebay Volume 44,053 cu. ft. (approximately 20%of total volume)
Other parameters
SA/DA1 1.790 (surface area to drainage area ratio from DWQ table)
Diameter of Orifice 4.0 in. (2 to 5 day temporary pool draw-down required)
Design Rainfall 1.5 in.
Design TSS Removal 2 90 % (minimum 85%required)
Form: SWU-102 Rev. 3:99 Page 1 of 4

Footnotes:
When using the Division SA/DA tables,the correct SA/DA ratio for permanent pool sizing should be computed based upon the
actual impervious%and permanent pool depth.Linear interpolation should be employed to determine the correct value for non-
standard table entries.
2 The requirement for a vegetative filter may be waived if the wet detention basin is designed to meet 90%TSS removal.
II. REQUIRED ITEMS CHECKLIST
The following checklist outlines design requirements per the Stormwater Best Management Practices manual
(N.C. Department of Environment, Health and Natural Resources, November 1999) and Administrative Code
Section: 15 A NCAC 2H .1008.
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. If a requirement has not been met, attach justification.
Applicants Initials
loke 44 a. The permanent pool depth is between 3 and 6 feet(required minimum of 3 feet).
b. The forebay volume is approximately equal to 20% of the basin volume.
G c. The temporary pool controls runoff from the design storm event.
d. The temporary pool draws down in 2 to 5 days.
e. If required, a 30-foot vegetative filter is provided at the outlet(include non-erosive flow
4fr calculations)
7 f. The basin length to width ratio is greater than 3:1.
g. The basin side slopes above the permanent pool are no steeper than 3:1.
Til c h. A submerged and vegetated perimeter shelf with a slope of 6:1 or less (show detail).
�6G i. Vegetative cover above the permanent pool elevation is specified.
1-6' j. A trash rack or similar device is provided for both the overflow and orifice.
k. A recorded drainage easement is provided for each basin including access to nearest
_� right-of-way.
1. If the basin is used for sediment and erosion control during construction, clean out of
the basin is specified prior to use a wet detention basin.
v m. A mechanism is specified which will drain the basin for maintenance or an emergency.
III. WET DETENTION BASIN OPERATION AND MAINTENANCE AGREEMENT
The wet detention basin system is defined as the wet detention basin, pretreatment including f'orebays and the
vegetated filter if one is provided.
This system (check one) (n) does (17j) does not incorporate a vegetated filter at the outlet.
This system (check one) (❑) does (®) does not incorporate pretreatment other than a forebay.
Form: SWU-102 Rev. 3.99 Page 2 of 4

Maintenance activities shall be performed as follows:
1. After every significant runoff producing rainfall event and at least monthly:
a. Inspect the wet detention basin system for sediment accumulation, erosion,trash accumulation,
vegetated cover, and general condition.
b. Check and clear the orifice of any obstructions such that drawdown of the temporary pool occurs
within 2 to 5 days as designed.
2. Repair eroded areas immediately; re-seed as necessary to maintain good vegetative cover,now
vegetative cover to maintain a maximum height of six inches, and remove trash as needed.
3. Inspect and repair the collection system(i.e. catch basins, piping, swales, riprap, etc.)quarterly to
maintain proper functioning.
4. Remove accumulated sediment from the wet detention basin system semi-annually or when depth is
reduced to 75% of the original design depth(see diagram below). Removed sediment shall be disposed
of in an appropriate manner and shall be handled in a manner that will not adversely impact water
quality(i.e. stockpiling near a wet detention basin or stream, etc.).
The measuring device used to determine the sediment elevation shall be such that it will give an accurate depth
reading and not readily penetrate into accumulated sediments.
When the permanent pool depth reads 6.75 feet in the main pond,the sediment shall be removed.
When the permanent pool depth reads 11.25 feet in the fore bay,the sediment shall be removed.
BASIN DIAGRAM
ill in the blanks)
Permanent Pool Elevation 15.00
Sediment Remova 1. 11.25 3.75
Sediment Removal Elevation 6.75 8.25
A
Bottom Elevation 10.00 1.25 -
Bottom Elevation 4.00 2.75
FOREBAY MAIN POND
5. Remove cattails and other indigenous wetland plants when they cover 50%of the basin surface. These
plants shall be encouraged to grow along the vegetated shelf and fore bay berm.
6. If the basin must be drained for an emergency or to perform maintenance,the flushing of sediment
through the emergency drain shall be minimized to the maximum extent practical.
7. All components of the wet detention basin system shall be maintained in good working order.
Form: SWU-102 Rev. 3.99 Page 3 of 4

I acknowledge and agree by my signature below that I am responsible for the performance of the seven
maintenance procedures listed above. I agree to notify DWQ of any problems with the system or prior to any
changes to the system or responsible party.
Print name: Jimm�Humphrey
Title: Manager
Address: 420 Eastwood Road, Suite 100 Wilmington,NC 28403
Phone: [phone]
Signature: c;A/NnisAin
Date: 4, k^01
Note: The legally responsible party should not be a homeowners association unless more than 50%of the lots
have been sold and a resident of the subdivision has been named the president.
I, W • , a Notary Public for the State of & 2-& g4-)
County of Pct, , do hereby certify that 9z.'m/A y 4.4410241AtAr
personally appeared before me this 1 day of au. ,, 2007 , and acknowledge the due
execution of the foregoing wet detention basin maintenance requirements. Witness my hand and official seal,
SEAL
My commission expires 9v.A2t.j
(�, o 0 b
Form: SWU-102 Rev. 3.99 Page 4 of 4

RECE
VET"
D
AUG 15 2007 L
SWSoiogiG
DWQ
PROJ#
(Top portion for recording purposes)
THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF POLITICAL
SIGNS
THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF THE FLAG OF
THE UNITED SATES OF AMERICA OR STATE FLAG OF NORTH CAROLINA.
DECLARATION OF
COVENANTS, CONDITIONS,AND RESTRICTIONS
FOR THE
MIDDLE CREEK COMMUNITY
THIS DECLARATION is made on the date hereinafter set forth by Bill Clark Homes of
Wilmington, LLC, a North Carolina limited liability company (hereinafter referred to as
"Declarant"):
WITNESS TO:
WHEREAS, Declarant is the owner of certain real property located in Brunswick
County,North Carolina, which is more particularly described on Exhibit "A" attached hereto and
made a part hereof by reference (hereinafter sometimes referred to as the "Property").
WHEREAS, Declarant desires to create on such property an exclusive residential
community of single-family homes to be known as Middle Creek(hereinafter sometimes referred
to as "Subdivision");
WHEREAS, Declarant desires to provide for the maintenance and upkeep of the common
area within the Subdivision and to provide for enforcement of covenants and restrictions
applicable to the Subdivision, and, to that end, desires to subject all of the property within the
Subdivision to the covenants, conditions, restrictions, easements, charges and liens hereinafter
set forth, each and all of which is and are for the benefit of said property and each owner thereof;
WHEREAS, Declarant has deemed it advisable to create an organization to own,
maintain and administer the Common Area (as hereinafter defined), to administer and enforce
covenants and restrictions applicable to the Subdivision, and to collect and disburse the
assessments and charges hereinafter created, and Declarant has therefore incorporated under

North Carolina law as a non-profit corporation, the MIDDLE CREEK COMMUNITY
ASSOCIATION, INC., for the purpose of exercising the aforesaid functions;
NOW, THEREFORE, Declarant declares that the Properties and such additions thereto as
may hereafter be made pursuant to Article II hereof, is and shall be owned, held, transferred,
sold, conveyed, used and occupied subject to the covenants, conditions, restrictions, easements,
charges and liens set forth in this Declaration, all of which shall run with the real property and be
binding on all parties owning any right, title or interest in said real property or any part thereof,
their heirs,personal representatives, successors and assigns, and shall inure to the benefit of each
owner thereof.
ARTICLE I
DEFINITIONS
Section 1. "Association" shall mean and refer to the MIDDLE CREEK COMMUNITY
ASSOCIATION, INC., a North Carolina non-profit corporation, its successors and assigns.
Section 2. "Builder" shall mean and refer to any persons, firms or entities to whom or
which Declarant conveys one or more Lots within the Properties for the purpose of constructing
a Dwelling thereon.
Section 3. "Common Area" shall mean and refer to any and all real property, together
with any improvements thereon, shown on any recorded subdivision plat of the Properties, with
the exception of any Lots, as said term is defined in this Declaration, and any public street rights-
of way as same are shown on any recorded subdivision plat of the Properties. Except as
otherwise provided in this Declaration, the Common Area shall be maintained by the Association
or its successors in interest unless dedicated to public use as set forth herein.
Section 4. "Declarant" shall mean and refer to Bill Clark Homes of Wilmington, L.L.C..
It shall also mean and refer to any person, company or entity to whom or which Declarant shall
assign or delegate the rights and obligations of Declarant by an assignment of Declarant's rights
recorded in the applicable public registry for Brunswick County,North Carolina.
Section 5. "Lot" shall mean and refer to any plot of land, with delineated boundary lines,
shown on any recorded subdivision plat of the Properties, with the exception of any Common
Area owned in fee by the Association and any public street rights-of-way shown on such
recorded plat. In the event that any Lot is increased or decreased in size by recombination or
-2-

resubdivision through recordation of new subdivision plats, any newly-platted Lot shall
thereafter constitute a Lot.
Section 6. "Member" shall mean and refer to every person or entity who or which holds
membership in the Association.
Section 7. "Owner" shall mean and refer to the record owner, whether one or more
persons or entities, of fee simple title to any Lot which is a part of the Properties, including
contract sellers, but excluding those having an interest in a Lot solely as security for the
performance of an obligation.
Section 8. "Properties" shall mean and refer to the property described in Exhibit A to this
Declaration and any additional property annexed pursuant to Article II of this Declaration.
Section 9. "Subassociation" shall mean and refer to any homeowners association formed
for the purpose of owning and maintaining real property and improvements thereon reserved for
the exclusive use and benefit of Owners of Lots or Units within a specific phase or section of the
Properties.
Section 10. "Unit" or "Dwelling" shall mean and refer to any building or portion thereof
within the Properties which is designated and intended for use an occupancy as a residence by a
single family,whether by the Owner of such Unit or by tenants or lessees of such Owner.
ARTICLE II
PROPERTY SUBJECT TO THIS DECLARATION
AND WITHIN THE JURISDICTION OF THE
MIDDLE CREEK COMMUNITY
Section 1. This section has been intentionally omitted.
Section 2. Existing Property. The real property which is and shall be held, transferred,
sold, conveyed, used and occupied subject to this Declaration as of the date of recording hereof,
which is within the jurisdiction of the Association, and which is described on Exhibit A attached
hereto.
Section 3. Annexation of Additional Property . At any time prior to December 31, 2026
additional land within the property described in Exhibit B attached hereto and made a part hereof
(the "Exhibit B Property") may be annexed by the Declarant without the consent of the Members
and therefore become subject to this Declaration by the recording by Declarant of a plat showing
such property to be annexed and of a supplementary declaration extending the operation and
effect of this Declaration to the property to be annexed. Furthermore, at any time Declarant owns
any Lot within the Properties, additional land not within the Exhibit B Property may be annexed
by the Declarant without the consent of the Members and therefore become subject to this
Declaration by the recording by Declarant of a plat showing such property to be annexed and of
a supplementary declaration extending the operation and effect of this Declaration to the
property to be annexed. Any property annexed must be contiguous to property already subject to
this Declaration. Any property annexed pursuant to this subsection may be annexed and
subjected to this Declaration as one parcel or as several parcels at different times. The addition of
such property pursuant to this Section may increase the cumulative number of Lots within the
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Properties and, therefore, may alter the relative maximum voting strength of the various types of
Members.
A supplementary declaration may contain such complementary additions to and
modifications of the covenants and restrictions contained in this Declaration, including, without
limitation, different voting rights and different annual and special assessments for the Lots or
Units so annexed, as Declarant, in its sole discretion, may deem necessary or appropriate to
reflect the different character or use of the property added. In no event, however, shall any
supplementary declaration revoke, modify or add to the covenants and restrictions established by
this Declaration so as to materially and adversely affect any portion of the Properties already
subject to this Declaration. A supplementary declaration annexing additional property need only
be executed by the Declarant and, if applicable, by the owner of the property being annexed, and
shall not require the joinder or consent of the Association or any of its Members.
Nothing contained in this Article shall be construed to obligate or require Declarant to
make any additions to the Properties.
Section 4. Conveyance of Common Area in Annexed Property. Promptly upon request of
Declarant, the owner of the annexed property shall convey any or all Common Area located
within the newly annexed property to the Association or, if requested by the Declarant, to the
Declarant. Title to such Common Area shall be conveyed in the same manner as set forth in
Section 3 of Article IV of this Declaration.
Section 5. Merger. Additional property may also be made subject to this Declaration by
merger or consolidation of the Association with another non-profit corporation formed for the
same or similar purposes. The surviving or consolidated association shall administer the
covenants and restrictions established by this Declaration within the Properties and the covenants
and restrictions established upon property owned by the other association as one scheme. No
such merger or consolidation shall cause any revocation, change or addition to this Declaration.
Section 6. Effect of Addition of Property. Except by amendment of this Declaration as
provided in Section 3 of Article XII hereof, no addition of property, whether by annexation,
merger or consolidation, shall revoke or modify any provision of this Declaration as to the
Properties already subject hereto or diminish the rights of the Owners of Lots and Units within
the Properties, except for the dilution of voting strength that occurs as a result of inclusion of
additional Members of the Association.
Section 7. Withdrawal of Property. Declarant reserves the right to amend this
Declaration so long as it has a right to annex Additional Property pursuant to this Article for the
purpose of removing any portion of the Properties then owned by Declarant or the Association
from the coverage of this Declaration, to the extent originally included in error or as a result of
any changes whatsoever in the plans for the Subdivision, provided such withdrawal is not
unequivocally contrary to the overall,uniform scheme of development for the Subdivision.
Section 8. Good Faith Lender's Clause. Any violation of these covenants, conditions or
restrictions shall not affect any lien or deed of trust of record held in good faith, upon any Lot or
commercial Unit, which liens may be enforced in due course, subject to the terms of this
Declaration.
-4-

ARTICLE III
MEMBERSHIP AND VOTING RIGHTS
Section 1. Membership. Every Owner of a Lot which is subject to assessment by the
Association shall be a Member of the Association. Membership shall be appurtenant to and may
not be separated from ownership of any Lot which is subject to assessment.
Section 2. Voting Rights. The voting rights of the membership shall be appurtenant to the
ownership of the Lots and may not be separated from ownership of any Lot.
There shall be two classes of Lots with respect to voting rights:
(a) Class A Lots. Class A Lots shall be all Lots except Class B Lots as the same are
hereinafter defined. Ownership of a Class A Lot shall entitle the Owner of such Lot to one (1)
vote. When more than one person owns an interest(other than a leasehold or security interest) in
any Lot, all such persons shall be Members and the voting rights appurtenant to their Lot shall be
exercised as they, among themselves, determine; but fractional voting shall not be allowed, and
in no event shall more than one vote be cast with respect to any Class A Lot.
(b) Class B Lots. Class B Lots shall be all Lots owned by Declarant and which have not
been converted to Class A Lots as set forth below. Declarant shall each be entitled to nine (9)
votes for each Class B Lot it owns. The Class B Lots shall cease to exist and shall be converted
to Class A Lots upon the earlier of the following to occur: (i) when Declarant no longer owns
any Lots or Units within the Properties; (ii) upon written waiver of Class B membership by the
Declarant and/or; or (iii) December 31, 2026. When the Class B Lots cease to exist and are
converted to Class A Lots, Declarant and Builder shall have the same voting rights as other
Owners of Class A Lots.
(c) Declarant's Voting Rights. Until the Class B Lots cease to exist, as provided above,
Declarant shall be vested with the sole voting rights of the Association on all matters (including
election and removal of directors and officers of the Association), except such matters as to
which the Declaration, the Articles of Incorporation, or the Bylaws of the Association
specifically require a vote of the Class A Members.
Section 3. Leased Units. Notwithstanding any other provision of this Declaration or the
Bylaws of the Association, the vote as expressed by the Owners of Lots or Units which are
leased (or rented to or otherwise occupied by persons) other than the Owner shall not be entitled
to any weight greater than forty-nine(49)percent on any matter pending before the Association.
ARTICLE IV
PROPERTY RIGHTS
Section 1. Owners' Easements of Enjoyment and Access. Except as limited by the
provisions of this Section 1 and by the rules and regulations adopted by the Board of Directors of
the Association, every Owner shall have a right and easement of enjoyment in, use of and access
to, from, and over the Common Area, which right and easement shall be appurtenant to and shall
pass with title to every Lot, subject to:
(a)the right of the Association to charge reasonable admission and other fees for the use
of any recreational facilities situated or constructed on the Common Area and to limit the use of
-5-

such facilities to Owners who occupy a residence on the Properties and to their families, tenants
and guests, as provided in Section 2 of this Article IV.
(b) the right of the Association to suspend the voting rights of an Owner for any period
during which any assessment against his Lot remains unpaid, or for a period not to exceed sixty
(60)days for any infraction of the published rules and regulations of the Association.
(c) the right of the Association to dedicate, sell or transfer all or any part of the Common
Area to any public or quasi-public agency, authority or utility for such purposes and subject to
such conditions as may be agreed upon by the Members. After Class B Lots cease to exist, no
such dedication or transfer shall be effective unless the Members entitled to at least 80% of the
votes of the entire membership of the Association and at least three-fourths (3/4) of the votes
appurtenant to each Class of Lots agree to such dedication, sale or transfer and signify their
agreement by a signed document recorded in the applicable public registry for Brunswick
County,North Carolina.Nothing herein shall be deemed to prohibit the Board of Directors of the
Association, without consent of the Members, from granting easements over and across the
Common Area to any public agency, authority or utility for the installation and maintenance of
sewerage, utility (including cable television) or drainage facilities when, in the opinion of the
Board, such easements are necessary for the convenient use and enjoyment of properties within
the Subdivision. Notwithstanding anything herein to the contrary, the Common Area shall be
preserved for the perpetual benefit of the owners of Lots within the Subdivision and shall not be
conveyed except to a governmental entity or another non-profit corporation organized for similar
purposes.
(d) the right of the Association, to borrow money and, after Class B Lots cease to exist,
with the assent of Members' entitled to at least 80% of the votes of the entire membership of the
Association and at least two-thirds (2/3) of the votes appurtenant to each Class of Lots,
mortgage, pledge, deed in trust, or hypothecate any or all of its real or personal property as
security for money borrowed or debts incurred, provided that the rights of any such lender or
mortgagee shall be subordinate to the property rights of the Members and the Association as set
forth herein.
(e) the right of the Association to exchange all or part of the Common Area for other
property and consideration of like value and utility, provided, however, that, after Class B Lots
cease to exist, any such dedication shall require the assent of the Members as set forth in
subparagraph (c) above, and further provided that, if the Board of Directors of the Association
determines, in its sole discretion, that such exchange is necessary to cure an encroachment or
setback violation on any Lot, the Board may effect such exchange without the consent of or
approval by the Members.
(f) the right of the Association to open the Common Area and, in particular, the
recreational facilities constructed thereon, for use by non-members of the Association.
(g) the right of the Association to expand or add to the Common Area and to improve,
maintain and operate the Common Area.
(h) the right of the Association to adopt, promulgate and enforce rules and regulations
concerning the use of the Common Area.
-6-

(i) the right of the Association to otherwise deal with the Common Area as provided in
the Articles of Incorporation and Bylaws of the Association.
Section 2. Delegation of Use.
(a) Family. The right and easement of enjoyment and access granted to every Owner by
Section 1 of this Article may be exercised by members of the Owner's family who occupy the
residence of the Owner within the Properties as their principal residence in Brunswick County,
North Carolina.
(b) Tenants: Contract Purchasers. The right and easement of enjoyment and access
granted to every Owner by Section 1 of this Article may be delegated by such Owner to his
tenants or contract purchasers who occupy a residence within the Properties, or a portion of said
residence, as their principal residence in Brunswick County,North Carolina.
(c) Guests. The right and easement of enjoyment and access granted to every Owner
by Section 1 of this Article may be delegated to guests of such Owners, tenants or contract
purchasers, subject to such rules and regulations as may be established by the Board of Directors.
(d) Suspension of Rights. The rights of any delegate of an Owner shall be suspended by,
upon and during suspension of such Owner's rights as provided in Section 7 of Article XII of this
Declaration.
Section 3. Conveyance of Common Area To The Association. No later than the time
Declarant no longer exercises voting control over the Association as provided in Article III
hereof, Declarant shall convey, and the Association shall accept, fee simple title to all Common
Area (except Common Area easements) within the Properties, and shall reserve for or grant to
the Association all Common Area easements, all subject to such easements, reservations,
conditions and restrictions as then may be of record, and the Association shall accept all such
conveyances, grants and reservations, provided, however, that so long as Declarant owns any
Lots within the Properties, Declarant reserves an easement over and across any Common Area
deeded to the Association for the purpose of constructing and maintaining any improvements on
the Common Area as it deems necessary or advisable, provided that any such improvements
must comply with the requirements of the appropriate governmental authority. Any
improvements placed on the Common Area by Declarant shall become the property of the
Association upon completion of such improvements.
Section 4. Regulation and Maintenance of Common Area and Common Area Easements.
It is the intent of the Declarant that the Common Area be preserved for the perpetual benefit of
the Owners.
(a) Regulation of Common Area. The Association may adopt and promulgate rules and
regulations governing the use of the Common Area by Owners and their family, guests and
invitees. No Owner or other permitted user shall use the Common Area or any portion thereof in
violation of the rules and regulations contained in this Declaration or subsequently adopted by
the Association.
Without limiting the generality of the foregoing, no Owner or tenant, guest or invitee of
an Owner shall, without the specific prior written consent of the Association: (i) damage or waste
the Common Area or improvements thereon or remove any trees or vegetation therefrom: (ii)
-7-

erect any gate, fence, structure or other improvement or thing on the Common Area; (iii) place
any garbage receptacle, trash or debris on Common Area; (iv) fill or excavate any part of the
Common Area; (v) landscape or plant vegetation on Common Area; or (vi) use the Common
Area or any part thereof in a manner inconsistent with or in any way interfering with the rights of
other Owners.
(b) Rights and Responsibilities of the Lot Owners as to Common Area Easements. Each
Owner of a Lot upon which a Common Area easement lies shall pay all property taxes and other
assessments levied against his Lot, including that portion of such tax or assessment as is
attributable to such Common Area easement.
(c) Rights and Responsibilities of the Association as to Common Area. The Association
shall have the right and obligation to ensure that the Common Area is preserved for the perpetual
benefit of the Owners, and, to that end, shall: (i) maintain the Common Area in its natural or
improved state, as appropriate, and keep it free of impediments to its use by the Owners, subject
to the provisions of this Declaration; (ii) procure and maintain adequate liability insurance
covering the Association and its Members, Directors and officers, against any loss or damage
suffered by any person, including the Owner of the Lot upon which Common Area lies, resulting
from use of the Common Area, and adequate hazard insurance covering the real and personal
property owned in fee by the Association; and (iv) pay all property taxes and other assessments
levied against all Common Area owned in fee by the Association.
(d) Declarant's and Association's Right of Entry. The Declarant and the Association and
the employees, agents, contractors and subcontractors of each, shall have a non-exclusive right
and easement at all times to enter upon any portion of a Lot reserved or designated as a Common
Area easement for the purposes of: (i) installing and maintaining subdivision entrance signs,
features, fencing and landscaping; and (ii) making such improvements to the Common Area; and
(iii)maintaining the Common Area easement in its natural or improved state.
ARTICLE V
COVENANT FOR MAINTENANCE ASSESSMENTS
Section 1. Creation of the Lien and Personal Obligation of Assessments. Each Owner of a
Lot, by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, is
deemed to covenant and agree to pay to the Association annual assessments and special
assessments, such assessments to be established and collected as hereinafter provided. All
assessments which are unpaid when due, together with interest and late charges set forth in
Section 9 of this Article V and all costs of collection, including reasonable attorney's fees, shall
be a charge against and, a continuing lien upon the Lot against which such assessment is made.
Each such assessment or charge, together with interest and costs of collection, including
reasonable attorneys' fees, shall also be the personal or corporate obligation of the person(s),
firms) or corporation(s) owning such Lot at the time when the assessment fell due, but such
personal obligation shall not be imposed upon such Owner's successors in title unless expressly
assumed by them. Although unpaid assessments and charges are not the personal obligation of
such Owner's successors in title unless expressly assumed by them, the unpaid assessments and
charges shall continue to be a lien upon the Lot against which the assessment or charge was
made.
-8-

It is the intent of the Declarant that any monetary fines imposed against an Owner
pursuant to the Bylaws of the Association or Section 7 of Article XII of this Declaration shall
constitute a lien against the Lot of such Owner to the same extent as if such fine were an
assessment against such Lot.
Section 2. Purposes of Assessments. The assessments levied by the Association shall be
used exclusively to promote the recreation, health, safety and welfare of the residents of the
Subdivision and, in particular, for: (i) acquisition, improvement and maintenance of properties,
services and facilities related to the use and enjoyment of the Common Area; (ii) repair and
reconstruction of improvements on, the Common Area, including, without limitation, the cost of
repair, replacement and additions thereto and the cost of labor, equipment, materials,
management and supervision thereof; (iii) payment of taxes and public assessments levied
against the Common Area owned by the Association in fee; (iv)procurement and maintenance of
insurance in accordance with the Section 4(c) of Article IV of this Declaration; (v) employment
of attorneys, accountants and other persons or firms to represent the Association when necessary;
(vi) payment of principal and interest on funds borrowed for Association purposes; (viii) such
other needs as may arise; and (ix)payment for the maintenance and operation of street lights.
Section 3. Annual Assessments.
(a) Maximum Annual Assessment. As provided in Section 2(a) of Article III hereof,
Declarant shall establish the Maximum Annual Assessment and initial annual assessment for
Class A Lots; thereafter, the terms "Maximum Annual Assessment", annual assessment, and
special assessment shall mean the Maximum, annual and special assessments applicable to Class
A Lots. Until January 1, 2008 the Maximum Annual Assessment shall be $ for each
Class A Lot.
From and after Class B Lots cease to exist the Maximum Annual Assessment may be
increased by the Board of Directors effective January 1 of each year without a vote of the
Members, Once Class B Lots cease to exist, the Maximum Annual Assessment may be increased
by the Board of Directors effective January 1 of each year without a vote of the Members, but
subject to the limitation that the percentage of any such increase shall not exceed 10% of the
Maximum Annual Assessment for the previous year unless such increase is approved as set forth
in Section 3(b), below.
From and after Class B Lots cease to exist,the Maximum Annual Assessment for Class A
Lots may be increased without limitation if such increase is approved by a majority of the votes
cast, in person or by proxy, at a meeting duly called for that purpose.
(b) Annual Assessments: Ratification of Budgets. For so long as a Class B Lot(s) exists,
the Board of Directors, in its sole discretion, shall have the authority to adopt an annual budget.
After Class B Lots cease to exist, the Board of Directors shall adopt a proposed budget
(including the proposed annual assessment for each Class of Lots) at least annually. Within 30
days after adoption of the proposed budget, the Board of Directors shall send a copy of the
proposed budget and shall give written notice to the Members of a meeting of the Members to
consider ratification of the budget, such meeting to be held not sooner than 10 days nor more
than 60 days after the mailing of such notice. Such meeting may, but need not be, combined with
the annual meeting of the Members. Except as required by Section 7 below, there shall be no
requirement that a quorum be present in order to vote on ratification of the budget (although a
-9-

quorum must be present to vote on other matters). The budget shall be deemed ratified unless at
that meeting Members having a majority of the votes of the entire membership vote to reject the
budget. Notwithstanding the foregoing, if the budget provides for annual assessments not greater
than 10% larger than the assessment in effect for the immediately preceding year, such budget
shall be deemed ratified unless Members having at least 80% of the votes of the entire
membership vote to reject the budget. If the proposed budget is rejected, the budget last ratified
by the Members shall be continued until such time as the Members ratify a subsequent budget
proposed by the Board.
Any annual assessment ratified by the Members shall continue thereafter from year to
year as the annual assessment until changed by the Board and ratified by the Members as set
forth herein.
Section 4. Special Assessments. In addition to the annual assessments authorized above,
the Association may levy, in any assessment year, special assessments for the purpose of
defraying, in whole or in part, the cost of any construction, repair or replacement of a capital
improvement on the Common Area, including fixtures and personal property related thereto, for
repayment of indebtedness and interest thereon, or for any other purpose, provided that any such
assessment shall have the same assent of the Members as provided in Section 3(b) of this Article.
Section 5. Assessment Rate: Collection Period. Except as provided in Section 6 of this
Article V, the annual and special assessments shall be fixed at a uniform rate for all Lots within
each subclass of Lots and may be collected on a yearly, semi-annually, quarterly or monthly
basis, as determined by the Board of Directors.
Section 6. Declarant's Assessments -Notwithstanding any other provision of this
Declaration or the Bylaws of the Association,the Declarant shall not be obligated for,nor
subject to, any annual or special assessment for any Lot or other property that it owns within the
Properties,provided,however, that the Declarant shall be responsible for paying the difference
between: (i)the operating expenses of the Association; and(ii)the total operating revenues of
the Association from all sources including, without limitation, annual and special assessments,
revenues generated from fees charged by the Association for use of the Common Area, and
investment income (said difference being hereinafter referred to as the"Operating Deficit"). For
purposes of this Section,the term"operating expenses" shall not include contributions to any
reserves for replacement, operating reserves, depreciation reserves, capital expenditures, or
special assessments.
Declarant may, by written notice given by the Declarant to the Association on or before
November 30 of any year,to be effective as of January 1,terminate its obligation to pay the
Operating Deficit and waive its right to exclusion from assessments. In such event, each Lot
owned by the Declarant which contains a Dwelling for which a certificate of occupancy has been
issued shall be assessed at the rate of twenty-five percent(25%) of the annual assessment in
effect for Class A Lots, as the same may change from time to time. Upon sale of such Lot by
Declarant to any other person or entity, such Lot shall be assessed at Class A rate, commencing
on the first day of the month after title to such Lot is transferred to such third party.
Notwithstanding any other provision of this Declaration, a Lot owned by the Declarant which
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contains a Dwelling occupied as a residence (but not as a model or sales center) shall be assessed
at the rate applicable to Class A Lots.
Section 7. Notice and Quorum for any Action Authorized Under Sections 3(a) and 4.
After Class B lots cease to exist, written notice of any meeting called for the purpose of taking
any action authorized under Section 3(a) or 4 shall be sent to all Members not less than fifteen
(15) days nor more than thirty (30) days prior to the meeting. At such meeting, the presence of
Members, in person or by proxy, entitled to cast sixty (60%) percent of the votes of the entire
membership shall constitute a quorum. If the required quorum is not present, another meeting
may be called subject to the same notice requirements, and if called for a date not later than sixty
(60) days after the date of the first meeting, the required quorum at the subsequent meeting shall
be one-half(%) of the required quorum at the preceding meeting.
Section 8. Date of Commencement of Annual Assessments: Amount of Initial and
Subsequent Annual Assessments: Certificate of Payment. Unless a different commencement date
is set by the Board of Directors, the annual assessments provided for herein shall commence as
to all Lots in any phase on the first day of the month following the conveyance of a Lot or Unit
within that phase to an Owner other than the Declarant or a Builder. Unless a lower amount is set
by the Board of Directors and ratified by the Members, the first annual assessment shall be the
"Maximum Annual Assessment" set forth in Section 3 of this Article and shall be prorated
according to the number of days remaining in the calendar year.
At least thirty(30)days before January 1 of each year,the Board of Directors shall fix the
amount of the annual assessment against each Lot. At least fifteen (15) days before January 1 of
each year, the Board of Directors shall send written notice of such assessment to every Owner
subject thereto. The due dates for the payment of annual and special assessments shall be
established by the Board of Directors.
The Association shall. upon demand, and for such reasonable charge as the Board of
Directors may determine, furnish a certificate signed by an officer of the Association setting
forth whether the assessments on a specified Lot have been paid. If such certificate states that an
assessment has been paid, such certificate shall be conclusive evidence of payment.
Section 9. Effect of Nonpayment of Assessments: Remedies. An assessment not paid
within ten(10) days after the due date shall incur such late charge as the Board of Directors may
from time to time establish, and, if not paid within thirty (30) days after the due date, shall also
bear interest from the due date at the rate of eighteen percent(18%)per annum or the highest rate
allowed by law, whichever is less. The Association may bring an action at law or in equity
against the Owner personally obligated to pay the same and/or foreclose the lien against the Lot
for which such assessment is due. Interest, late payment charges, reasonable attorneys' fees, and
the costs of such action or foreclosure shall be added to the amount of such assessment. No
Owner may waive or otherwise escape liability for the assessments provided for herein by non-
use of the Common Area or by abandonment of his Lot.
Section 10. Subordination of the Lien to Mortgages. The liens provided for herein shall
be subordinate to the lien of any first mortgage or first mortgage on a Lot. Sale or transfer of a
Lot shall not affect any assessment lien; however, the sale or transfer of a Lot pursuant to
foreclosure of a first mortgage, or any proceeding in lieu of foreclosure thereof, shall extinguish
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the lien of any assessment which became due prior to the date of such conveyance. No such sale
or transfer shall relieve such Lot from liability for any assessment thereafter becoming due or
from the lien thereof; but the liens provided for herein shall continue to be subordinate to the lien
of any first mortgage.
Section 11. Initial Capital Contribution. At the time of closing of each sale of a
Dwelling, including the initial sale of same, a sum equal to twice (2)the monthly assessment for
Class A Lots in effect at the time of such sale shall be collected from the purchaser of such
Dwelling and transferred to the Association as part of its working capital. The purpose of such
working capital contributions is to ensure that the Association will have adequate cash available
to meet unforeseen expenditures or to acquire additional equipment or services deemed by the
Board of Directors to be necessary or desirable. Amounts paid to pursuant to this Section shall
not be considered as an advance payment of any regular or special assessment.
Section 11. Exempt Property. All property dedicated to and accepted by a public
authority and all property owned by a charitable or non-profit organization exempt from taxation
by the laws of the State of North Carolina shall be exempt from the assessments created herein.
Notwithstanding the foregoing, no land or improvements devoted to dwelling use shall be
exempt from said assessments.
ARTICLE VI
RIGHTS OF LENDERS
Section 1. Books and Records. Any owner or holder of a first mortgage on any Lot, or its
agent, shall have the right, during normal business hours, to examine copies of this Declaration,
the Articles of Incorporation, Bylaws, and the books and records of the Association and, upon
written request to the Association, to receive a copy of the financial statement for the
immediately preceding fiscal year.
Section 2. Notice to Lenders. After Class B Lots cease to exist and upon written request
to the Association, the owner or holder of a first mortgage on any Lot shall be entitled to timely
written notice of:
(a) Any 60-day delinquency in the payment of assessments or charges owed by the
Owner of the Lot securing its loan.
(b) A lapse, cancellation, or material modification of any insurance policy or fidelity
bond maintained by the Association.
(c) Any proposed action that requires the consent of a specified percentage of owners or
holders of first mortgages on the Lots.
Section 3. Approval of Owners and Holders of First Mortgage. After Class B Lots cease
to exist, unless at least seventy-five percent (75%) of the owners and holders of the first
mortgages on Lots located within the Properties have given their prior written approval, the
Association shall not:
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(a) By act or omission seek to abandon, partition, subdivide, encumber, sell or transfer
any real estate or improvements thereon which are owned, directly or indirectly, by the
Association. The granting of easements for utilities or other purposes shall not be deemed a
transfer within the meaning of this subsection. Nothing herein shall be deemed to prohibit the
Association from exchanging Common Area for other real property of like utility and value as
provided in Section 1(c) of Article IV of this Declaration, or to require the approval of such
exchange by the holders of first mortgages on the Lots;
(b) Change the method of determining the obligations, assessments, dues or other
charges which may be levied against a Lot;
(c) Fail to maintain hazard insurance on insurable improvements on the Common Area
on a current replacement cost basis in an amount not less than one hundred percent(100%) of the
insurable value; or
(d) Use the proceeds of any hazard insurance policy covering losses to any part of the
Common Area for other than the repair, replacement or reconstruction of the damaged
improvements.
Section 4. Payment of Taxes and Insurance Premiums. The owners or holders of first
mortgages on Lots, jointly or singly, may pay taxes or other charges which are in default and
which have or may become a charge or lien against any of the Common Area and may pay
overdue premiums on hazard insurance policies or secure new hazard insurance coverage upon
the lapse of a policy covering property owned by the Association. The persons, firms or
corporations making such payments shall be owed immediate reimbursement therefor by the
Association.
ARTICLE VII
EASEMENTS
Section 1. Access and Utility Easements. Easements for the installation and maintenance
of driveways, walkways, water, gas, telephone, cable television and electric power transmission
lines, sanitary sewer and storm water drainage facilities, and for other public utility installations
are reserved as shown on the recorded plats of the Properties. The Association may reserve or
grant easements over the Common Area as provided in Article IV, Section 1(c), of this
Declaration. Within any such easement herein provided, no structure, planting or other material
shall be placed or permitted to remain which may interfere with the installation or maintenance
of the utilities installed thereon, or which may change the direction of flow or drainage of water
through drainage pipes or channels constructed in such easements.
For a period of thirty (30) years from the date hereof, Declarant reserves, for itself and its
employees, agents, successors and assigns, an easement upon and a right of ingress, egress and
regress on, over and under the Properties for the purposes of constructing and maintaining water,
sewer, gas, storm water drainage and retention, telephone, cable television, and electric, and
other utility facilities to the extent required by any applicable governmental entity or deemed by
the Declarant to be necessary or convenient for the development, use and enjoyment of the
Properties and the Common Area and for the conduct of construction, sales and marketing
activities. Such right expressly includes the right to cut any trees, bushes or shrubbery, make any
gradings of the soil or take any other similar action that it deems reasonably necessary or
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appropriate. After such action has been completed, Declarant shall grade and seed the affected
property and otherwise restore the affected property to its original condition to the extent
practicable, but shall not be required to replace any trees, bushes or shrubbery necessarily
removed. Declarant shall give reasonable notice of its intent to take such action to each Owner
whose Lot is affected.
Section 2. Easements for Governmental Access. An easement is hereby established over
the Common Area and every Lot within the Properties for the benefit of applicable governmental
agencies for installing,removing, and reading water meters,maintaining and replacing water and
sewer facilities, and acting for other purposes consistent with public safety and welfare,
including, without limitation, law enforcement, fire protection, garbage collection and the
delivery of mail.
Section 3. Owner's Easement and Right of Entry for Repair, Maintenance and
Reconstruction. If any Dwelling is located closer than five (5) feet from its Lot line, the Owner
thereof shall have a perpetual access easement over the adjoining Lot to the extent reasonably
necessary to perform repair, maintenance or reconstruction of such Dwelling. Such work shall be
done expeditiously and, upon completion of the work, the Owner shall restore the adjoining Lot
to as nearly the same condition as that which existed prior to the commencement of the work as
is reasonably practicable. No fence shall be erected within such area adjoining a Dwelling.
Section 4. Association's Easement and Right of Entry. The Association, for itself and its
employees, agents, contractors, subcontractors and invitees, shall have a perpetual access
easement over the each Lot to the extent reasonably necessary to perform the maintenance to be
performed by the Association.
Section 5. Easement Over Common Area. An perpetual, non-exclusive easement over the
Common Area is hereby granted to each Lot and its Owners, family members and tenants of
such Owners, the occupants of such Lot, and guests and invitees of such Owners, tenants or
occupants, for the purpose of providing access, ingress and egress to and from streets, parking
areas and walkways serving the Properties.
ARTICLE VIII
ARCHITECTURAL CONTROL
Section 1. Architectural Approval. The Declarant shall have the sole and absolute right
to determine the style and appearance of the Dwellings, including, but not limited to, flags, flag
poles, flag staffs, fences, walls, buildings, outbuildings, garages, storage sheds, mailboxes, lawn
decorations, structures of any type or color thereof, grading, landscaping, patio covers and
trellises,plans for off-street parking of vehicles and utility layout, and any other improvements to
be built or constructed on any Lot (hereinafter individually and collectively referred to as
"Improvements").
After occupancy of a Dwelling as a residence pursuant to a certificate of occupancy or
other similar certificate issued by the appropriate governmental authority, no Improvements
(including, without limitation, replacement of any previously existing Improvements) shall be
commenced, erected or maintained upon the Properties, nor shall any exterior addition to or
change or alteration thereof be made (including, without limitation, changing materials or color
of any exterior portion of any such Improvements), nor shall a building permit for such
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Improvements or change be applied for or obtained, until plans and specifications showing the
nature, kind, shape, heights, materials, color and location of same shall have been submitted to
and approved in writing by the Association or by an Architectural Review Committee ("ARC")
composed of three or more persons appointed by the Board of Directors of the Association. If the
Association or its designee fails to approve or disapprove such proposed Improvements within
60 days after complete plans and specifications have been received by it, approval will not be
required, and this Article shall be deemed to have been complied with. The Association shall
have the right to charge a reasonable fee for receiving and processing each application.
The Declarant and, after the Declarant no longer owns any Lot or Unit within the
Properties, the Association, shall have the right to promulgate and from time to time amend
written architectural standards and construction specifications (hereinafter the "Architectural
Guidelines") which may establish, define and expressly limit the standards and specifications
which will be approved, including, but not limited to, architectural style, exterior color or finish,
roofing material, siding material, driveway material, landscape design and construction
technique. Neither the Association nor the ARC shall approve any Improvements which it
determines, in its sole discretion, not to be in harmony of external design, construction and/or
location in relation to the surrounding structures, topography or the general plan of development
of the Subdivision.
Neither the Declarant, the Association, the Board of Directors,the ARC, nor any member
or employee of any of them, shall have any liability to any person or entity by reason of any acts
taken or omitted by them, or any of them, in good faith pursuant to this Article.
Section 2. Rules and Regulations. The ARC may from time to time recommend to the
Board, and the Board may, in its sole discretion, adopt, promulgate, amend and repeal rules and
regulations interpreting and implementing the provisions of this Article VIII, including adoption
of detailed architectural guidelines and the imposition of a fee or charge for review of proposed
improvements or modifications.
Section 3. Variances. The ARC may recommend to the Board, and the Board may, by
the vote or written consent of a majority of the members thereof, allow reasonable variances as
to the covenants, conditions or restrictions contained in this Declaration, on such terms and
conditions as it shall require; provided, however, that all such variances shall be in keeping with
the general plan for the improvement and development of the Property. Variances contained in
plans that are inadvertently approved by the ARC as part of the proposed improvements shall not
be considered as having been approved unless specifically approved by the Board in accordance
with the provisions of this Section.
ARTICLE IX
PARTY WALLS
Section 1. General Rules of Law to Apply. The general rules of law regarding party
walls, lateral support in below ground construction and of liability for property damage due to
negligence or willful acts or omissions shall apply to each wall which is built as part of the
original construction of the Dwellings within the Properties and placed on the dividing line
between the Lots, and all reconstruction or extensions of such walls, to the extent not
inconsistent with the provisions of this Article.
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Section 2. Sharing of Repair and Maintenance. The cost of reasonable repair and
maintenance of a party wall shall be shared by the Owners who make use of the wall in
proportion to such use.
Section 3. Destruction by Fire or Other Casualty. If a party wall is destroyed or damaged
by fire or other casualty, any Owner who or which uses the wall may restore it, and if the other
Owners thereafter make use of the wall, they shall contribute to the cost of restoration thereof in
proportion to such use without prejudice, however, to the right of any such Owners to call for a
larger contribution from the others under any rule of law regarding liability for negligent or
willful acts or omissions.
Section 4. Easement and Right of Entry for Repair, Maintenance and Reconstruction.
Every Owner shall have an easement and right of entry upon the Lot of any other Owner and the
Common Area to the extent reasonably necessary to perform repair, maintenance or
reconstruction of a party wall and those improvements belonging to his Lot which encroach on
an adjoining Lot or Common Area. Such repair, maintenance, or reconstruction shall be done
expeditiously, and upon completion of the work, the Owner shall restore the adjoining Lot(s) and
Common Area to as nearly the same condition as that which prevailed prior to commencement of
the work as is reasonably practicable.
Section 5. Weather-proofing. Notwithstanding any other provision of this Article, an
Owner who, by his negligence or willful act, causes the party wall to be exposed to the elements,
shall bear the entire cost of furnishing the necessary protection against such elements.
Section 6. Right to Contribution Runs With Land. The right of any Owner to contribution
from any other Owner under this Article shall be appurtenant to the land and shall pass to such
Owner's successors in title.
Section 7. Certification by Adjoining Property Owner That No Contribution Is Due. If
any Owner desires to sell his Lot, such Owner, in order to assure a prospective purchaser that no
Owner of an adjoining Lot has a right of contribution as provided in this Article, may request the
adjoining property Owner to make a certification that no right of contribution exists, whereupon
it shall be the duty of each adjoining property Owner to make such certification immediately
upon request, and without charge; provided, however that where the adjoining property Owner
claims a right of contribution,the certification shall contain a recital of the amount claimed.
Section 8. Arbitration. In the event of a dispute concerning a party wall or the provisions
of this Article, such dispute shall be resolved pursuant to the provisions of Section 8 of Article
XII hereof.
ARTICLE X
RIGHTS AND RESPONSIBILITIES OF THE ASSOCIATION
Section 1. Responsibilities. The Association, subject to the rights of the Owner set forth
in this Declaration, shall be responsible for the exclusive management and control of the
Common Area and shall keep the Common Area in good, clean and proper condition, order and
repair. The Association shall be responsible for the payment of all costs, charges and expenses
incurred in connection with the operation, administration and management of the Common Area
and the performance of its other obligations hereunder. The Association shall operate and
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maintain areas designated by the Declarant as Common Areas, whether or not title to such areas
has been formally conveyed to the Association. The Association shall also be responsible for
enforcement of the covenants and restrictions contained in this Declaration.
Section 2. Manager. The Association may employ and pay for the services of a person or
entity, including the Declarant (the "Manager"), to assist the Association in managing its affairs
and carrying out its responsibilities hereunder and such other persons or entities, including
attorneys and accountants, as the Association deems necessary or advisable, whether such
persons or entities are engaged, furnished of employed by the Manager or directly by the
Association. The Association may enter into a Management Agreement for such management
services upon such terms as the Board of Directors may deem appropriate. The payment of
management fees due to the Declarant may, at Declarant's option, be deferred until such later
date as Declarant, in its sole discretion, deem appropriate. Furthermore, any management fees
due to Declarant may, at Declarant's option, be credited against any assessments due or to be
coming due from the Declarant.
Section 3. Personal Property for Common Use. The Association may acquire and hold
tangible and intangible personal property and may dispose of the same by sale or otherwise,
subject to such restrictions, if any, as may from time to time by provided in the Articles of
Incorporation or Bylaws of the Association.
Section 4. Insurance: Bonds. The Association shall procure and maintain adequate
liability insurance covering the Association. The Association shall also procure and maintain full
replacement value hazard insurance on real and personal property owned by the Association, and
shall procure and maintain officers', directors' and employees' liability insurance, and such other
insurance as it deems necessary or advisable. The premiums for such insurance shall be a
common expense paid from the annual assessments provided in Article V of this Declaration.
The Association may cause any or all persons responsible for collecting and disbursing monies
of the Association to be bonded.
Section 5. Implied Rights. The Association may exercise any other right or privilege and
take any action authorized by this Declaration, the Association's Articles or Bylaws, or the North
Carolina Planned Community Act (Chapter 47F of the North Carolina General Statutes), or the
North Carolina Nonprofit Corporation Act (Chapter 55A), as from time to time amended, and
every other right or privilege reasonably necessary to effectuate the exercise of any right or
privilege or the taking of any action authorized herein or therein.
Section 6. Declarant's Reserved Rights; Association's Obligation of Cooperation. The
Association shall accept conveyance of any Common Area conveyed to it, in fee or by easement,
by Declarant or, at the request of Declarant, by an owner of any property within or to be annexed
into the Properties and, upon request of Declarant and without further consideration, shall
execute any document necessary to evidence such acceptance.
Until such time as Declarant and Builders have completed all of the contemplated
improvements and have sold all of the Lots within the Subdivision:
(a) Declarant shall have the right to alter the boundaries of the Common Area, whether or
not it has been previously deeded to the Association, provided that such alteration does not
substantially, materially and adversely affect the function and use of the Common Area. The
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Association and each Owner hereby irrevocably appoints the Declarant as his attorney-in-fact to
execute and/or deliver any documents, plats, deeds, or other written matters necessary or
convenient to accomplish the addition of Common Area or Properties, or both, to create
easements as deemed necessary by Declarant, and to adjure the boundary or boundaries of the
Common Area.
(b) Neither the Association nor its Members, nor the use of the Common Area by the
Association and its Members, shall interfere with or impede the completion of the improvements
or the marketing and sale by the Declarant and the Builder of Lots and homes.
(c) Declarant and each Builder shall have the right to make such use of Lots and the
Common Area as may facilitate completion of development and sale of Lots and Units by the
Declarant and the Builder. Without limiting the foregoing, Declarant shall have the right to
maintain or permit the Builder or others to maintain sales offices, model Dwellings and Units,
administrative offices, and construction offices (which may be trailers or temporary or
permanent buildings), or any or all of same, on Lots or the Common Area. Declarant and the
Builder shall also have the right to erect and maintain signs on Lots and/or the Common Area, to
bring prospective purchasers upon the Common Area, to-use the Common Area for sales and
marketing activities for the Subdivision, to grant the right to use the Common Area to a
prospective purchasers or any other individual or group, in Declarant's sole discretion, and to
conduct any and all other marketing activities deemed appropriate by the Declarant, and to
permit the Builder and others to exercise such rights in conjunction with or separate from the
Declarant.
(d) Subject to the provisions of Section 1(d) of Article IV of this Declaration, Declarant
shall have the right, but not the obligation,to loan money to the Association in such amounts and
upon such terms and conditions as to which the Declarant may agree. Payments due to the
Declarant under any such loans may, at Declarant's option, be credited against any assessments
coming due at any time from the Declarant.
(e) In addition to all other rights of the Declarant, no amendment shall be made to this
Declaration, and no rule or regulation shall be adopted, interpreted or enforced by the
Association, so as to modify the assessments or other charges applicable to the Declarant or a
Builder or assessed against the Lots owned by either, or which shall restrict, impair, or, in
Declarant's sole judgment, materially adversely affect the activities of the Declarant or the
Builder with regard to construction, use of Common Area and delegation of the right to use the
Common Area, or the marketing and sale of Lots by the Declarant and Builder, whether or not
such activities are enumerated in the preceding paragraphs, without the express prior written
consent of Declarant.
In exercising any of the rights provided or granted under this Article X, neither Declarant,
nor the Association shall revoke, modify or amend this Declaration in a manner that reduces the
size of the Common Area to less than, the area required by the appropriate governmental
authority as of the date of this Declaration.
ARTICLE XI
USE RESTRICTIONS
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Section 1. Business Use Prohibited. No trade, business, profession or other type of
commercial activity shall be carried on upon any Lot, except that the Declarant, the Builder, real
estate brokers, Owners and their agents may show Lots for sale or lease. Notwithstanding the
foregoing, the Declarant and each Builder and the agents and employees of each, shall have the
right to: (i) use Lots and improvements erected thereon for sales offices, field construction
offices, storage facilities, and its own general business offices; (ii) maintain fluorescent-lighted
or spot-lighted model homes which may be open to the public for inspection 7 days per week for
such hours as the Declarant or Builder deems appropriate or necessary; (iii) conduct any other
activities on Lots to benefit sales efforts; and (iv) use the parking facilities on the Common Area
for parking for its employees and invitees.
Section 2. Use of Accessory Structures. No tent, shack, barn, car port, metal awnings,
metal utility sheds or other building, other than a Dwelling and its garage, shall be erected on a
Lot, and used temporarily or permanently as a residence, nor shall any such structure be used for
any other purpose. Notwithstanding the foregoing, the Declarant and, with the approval of the
Declarant, a Builder, may use temporary buildings, offices or facilities in connection with the
marketing, sale and construction of Units.
Section 3. Maintenance of Improvements. Each Owner shall maintain in good condition
and repair all improvements constructed upon such Owner's Lot, including, without limitation,
the Dwelling. No Owner shall change the exterior design or color of the Dwelling on such
Owner's Lot, including the roof thereof, except in compliance with Article VIII hereof
Section 4. Storage: Clothes Hanging. No Lot or Common Area shall be used for the
storage of rubbish. Outside clothes hanging devices shall not be permitted.
Section 5. Nuisances. No noxious or offensive trade or activity shall be carried on upon
any Lot or the Common Area, nor shall anything be done thereon which may be or become an
annoyance or nuisance to the neighborhood. No automobile or other vehicle mechanical repairs
or like activity shall be conducted within the Properties other than in a garage and concealed
from public view.
Section 6. Lawns. Each Lot on which there is a completed Dwelling shall be maintained
in a neat condition by the Owner thereof or, as appropriate, the Association or a Subassociation.
In this context, the word "Lot" shall include that portion of the property from the outside of the
structure on the applicable Lot to the adjacent paved road surface. "Neat" shall require, at a
minimum, that the lawn be regularly cut and fertilized and that mulched areas be regularly re-
mulched and kept weeded so that its appearance is in harmony with the neighborhood.No Owner
shall allow the grass on a Lot to grow to a height in excess of six (6) inches, measured from the
surface of the ground. All improved Lots must have grass lawns; no gravel or similar type lawns
are permitted.
Section 7. Failure to Maintain. If an Owner fails to maintain the Lot or the improvements
thereon, the Association or the appropriate Subassociation, after giving such Owner at least ten
(10) days' written notice, shall be authorized to undertake such maintenance at the Owner's
expense. By accepting title to his Lot, each Owner shall be deemed to grant access upon the
Owner's Lot and Dwelling for such purpose and such entry shall not constitute a trespass. If such
maintenance is undertaken by the Association, Subassociation or Declarant, the charge therefor
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and all costs of enforcement and collection shall be secured by a lien against the Lot as provided
in Article V hereof.
Section 8. Animals. No animals, livestock or poultry of any kind shall be raised, bred, or
kept on any Lot, except that a reasonable number of cats, dogs, and other household pets may be
kept provided they are kept within the residence and are not kept, bred, or maintained for any
commercial purposes or become a nuisance to the neighborhood. No person owning or having
custody of an animal shall allow the animal to stray or go upon another Owner's Lot without the
consent of such other Owner. No animals shall be permitted on or in the Common Area at any
time except as permitted by the rules and regulations of the Association or by applicable law. All
animals shall be on a leash when outside the Owner's Dwelling. The Owner shall be responsible
for cleaning all droppings from their animals. The association shall have the right to expel
animals from the community for the Owners continuing violation(s)of the governing documents.
Section 9. Signs. No signs shall be displayed on any Lot with the exception of one "For
Sale" or "For Rent" sign not exceeding 36" x 24" in size and signs with the maximum
dimensions of 24 inches by 24 inches expressing support of or opposition to political candidates
or other issues which will appear on the ballot of a primary, general or special election, provided
that such political signs shall not be placed on a Lot earlier than forty-five (45) days before such
election and shall be removed within seven (7) days after such election. The Association may
develop uniform sign standards and snecifications to which all Owners must adhere. No sign of
any kind shall be displayed in or on the Common Area without the prior written consent of the
Association. Notwithstanding the foregoing, Declarant and, with the consent of and upon such
conditions as Declarant, in its sole discretion, might impose, a Builder shall have the right to
erect and maintain signs of any type and size on any Lot which it owns and on the Common
Area, in connection with the development and sale of the Properties.
Section 10. Water Retention Areas. The Association shall be responsible for maintaining
the portions of the storm water drainage system which are within the Common Area, including
the water quality and quantity standards of the approved plans, to the extent required by law. A
drainage easement is hereby dedicated to the Association for the purpose of maintaining the
storm water system to meet water quality and quantity design standards of the approved plans
and any future governmental laws,rules or regulations.
Each Owner of a Lot which borders a water retention area shall maintain any portion of
that Owner's Lot lying within a retention area free of debris but shall not remove any wetlands
species or do anything that would affect adversely water quality within the water retention area.
Swimming and bathing in water retention areas are prohibited. Docks or other structures
shall not be erected in water retention areas without the prior written consent of the Association.
All other uses of water retention areas shall be subject to the prior written approval of the
Association and such rules and regulations as the Association may adopt from time to time.
Section 11. Vehicles, Boats and Trailers. No vehicle of any kind shall be parked on any
Lot except on a paved parking surface or driveway or within a garage. No truck or vehicle used
primarily for commercial purposes (other than those temporarily present on business) and no
recreational vehicles or campers, and no trailer may be parked within the Properties. Any
vehicle not in operable condition and validly licensed, may be kept on a Lot if kept inside a
garage and concealed from public view. No boat may be kept on any lot. For the purpose of the
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preceding sentence, the term "kept" shall mean present for either a period of more than ten (10)
hours or overnight, whichever is less. The Association shall have the right to tow or remove any
boat, trailer, or vehicle of any type which is parked within the Premises or kept on any Lot in
violation of this section, at the owner's expense, and the owner of each Lot, by acceptance of
their deed, does grant to the Association such an easement on, across, and upon their Lot as may
be necessary to enforce the provisions set out in this section.
Section 12. Walls, Fences, and Hedges. All walls, fences, planters and hedges shall be
controlled strictly for compliance with this Declaration and architectural standards established by
the Declarant or the ARC.
No wall, fence, planter or hedge shall be erected or maintained on a side lot line forward
of the rear exterior corners of the main residential structure located on a lot. For the purpose of
this provision the rear exterior corner of the main residential structure excludes bay or box
windows, chimney structures or any other similar appendage.
No perimeter wall, fence, or hedge in excess of six (6) feet in height shall be erected and
maintained on a side lot line from a point located at the rear of exterior of the main residential
structure, backward to the rear property line on a Lot and along the rear property line of the Lot.
On corner lots, side yard fences must be set back from the side property line a minimum
of one-half(1/2) of the side building line setback shown on the plat. In no event shall the fence
be located forward of the rear exterior corner of the main residential structure.
The design and materials of all fences shall be approved by the ARC prior to construction
pursuant to the approval requirements of Article VIII, Section 1, of this Declaration.
Section 13. Antennae and Roof Structures. No radio or other electrical towers, aerials,
antennae, , or other devices of any type for the reception or transmission of radio broadcasts or
other means of communication shall be erected, constructed, placed or permitted to remain on
any Lot or upon any improvements thereon, except that this prohibition shall not apply to those
antennae specifically covered by 37 C.F.R. Part 1, Subpart S, Section 1.4000 (or any successor
provision) promulgated under the Telecommunications Act of 1996, as amended from time to
time. The Association shall be empowered to adopt rules governing the types of antennae that are
permissible hereunder and establishing reasonable, non-discriminatory restrictions relating to
safety, location and maintenance of antennae.
An antenna permissible pursuant to rules adopted by the Association may be installed
only if it is approved by the Association pursuant to Article VIII hereof.
Section 14. Visual Obstructions at the Intersections of Public Streets. No object or thing
which obstructs sight lines at elevations between two (2) and six (6) feet above the roadways
within the triangular area formed by the junction of street curb lines and a line connecting them
at points twenty-five (25) feet from the junction of the street curb lines (or extensions thereof)
shall be placed, planted or permitted to remain on any corner lots.
Section 15. Leased Units. An Owner may lease or sublet his Unit; provided, however,
that any lease or sublease must be for at least six (6) months, in writing and contain the following
provision:
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"Tenant shall obey, adhere to and be bound by all provisions of the Declaration Of
Covenants, Conditions And Restrictions For the Sunset Ridge Community, recorded in the
applicable public registry for Brunswick County, North Carolina. Tenant acknowledges that he
has received of a copy such Declaration-and the rules and regulations of the Association and is
familiar with the provisions of same."
If an Owner fails to include said provision in any lease or sublease, it shall be
conclusively deemed to be included and part of said lease or sublease. Owner shall furnish the
Association a copy of any leases or subleases of his Unit.
Section 16. Minimum Size of Dwellings. All Dwellings constructed on any Lot shall
have a minimum of 1100 square feet of enclosed dwelling area. The term "enclosed dwelling
area" as used in the minimum requirements shall be the total enclosed area within a dwelling,
provided, however, that such term does not include garages, terraces, decks, open porches, and
like areas; provided, further, that shed type porches, even though attached to the house are
specifically excluded from the definition of the aforesaid term "enclosed dwelling area".
Section 17. Attached Garages. All Units constructed within the Properties shall contain
an enclosed garage that is permanently attached to and part of the Unit and such garage shall be
large enough to accommodate at least one automobile.
Section 18. Seasonal or Holiday Decorations. (e.g., Christmas trees and lights,
pumpkins, Easter decorations) shall be removed from each Lot or residential dwelling within a
reasonable period of time after such holiday passes. The ARC has the sole discretion to
determine what is a reasonable period of time for seasonal or holiday decorations to exist after
the holiday passes and its determination shall be final.
Section 19. Deviations. Declarant at its sole discretion, is hereby permitted to approve
deviations to restrictions in Article XI in instances where in its judgment, such deviation will not
adversely affect the development of the Property as a whole. Such approvals must be granted in
writing and when given will automatically amend these restrictions for that certain Lot only.
Section 20. Window Coverings. All drapes, curtains or other similar materials hung at
windows so as to be visible from outside the home shall be of a white or neutral background
material.
Section 21. Exterior Lights. All light bulbs or other lights installed in any fixture located
on the exterior of any building or any Sites shall be clear, white or non-frosted lights or bulbs.
Light wattage and placement shall be approved by the Architectural Control Board.
Section 22. Service Utilities, Fuel Tanks, Wood Piles, Trash. All service utilities, fuel
tanks, wood piles and trash and garbage containers are to be enclosed within a fence, wall or
plant screen of a type and size approved by the Declarant or the Architectural Control
Committee, so as to preclude the same from causing an unsightly view from any highway, street
or way within the subdivision, or from any other residence within the subdivision.
Section 23. Curbside Maintenance. Each lot owner shall have a duty and obligation to
maintain the roadside curbing along the front of their lot, and in the case of corner lots, along the
side abutting roadways, in the same condition as originally installed by the Declarant. In the
event any lot owner shall fail to do so,then the provisions set out in Article XI, Section 7 dealing
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with failure to maintain shall apply. Provided, however,that if the Declarant still owns property
in the Sunset Ridge development,whether a developed lot or lots, or a tract or tracts of land for
future development,the Declarant shall have the option of repairing or replacing damaged
curbing to its original condition, and the cost of such repairs or replacement shall constitute a
lien in favor of the Declarant against the lot adjacent to where the repairs or replacements were
effected.
Section 24. Flags.The design, materials and location of all flags, flag poles, flag staffs,
shall be approved by the ARC prior to installation or display pursuant to the approval
requirements of Article VIII, Section 1, of this Declaration.
ARTICLE XII
STORMWATER MANAGEMENT
Section 1. The following covenants are intended to ensure ongoing compliance with State
Stormwater Management Permit Number , as issued by the Division of Water
Quality under NCAC 211.1000. The State of North Carolina is made a beneficiary of these
covenants to the extent necessary to maintain compliance with the Stormwater Management
Permit. These covenants are to run with the land and be binding on all persons and parties
claiming under them. The covenants pertaining to stormwater regulations may not be altered or
rescinded without the express written consent of the State of North Carolina, Division of Water
Quality.
Section 2. Alteration of the drainage as shown on the approved plan may not take place
without the concurrence of the Division of Water Quality.
Section 3. The maximum allowable built-upon area per lot is 5,000 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 and parking areas, but does not include raised, open wood decking, or the water
surface of swimming pools.
Section 4. All runoff from the built-upon areas on the lot must drain into the permitted
system. This may be accomplished through a variety of means including roof drain gutters
which drain to the street, grading the lot to drain toward the street, or grading perimeter swales to
collect the lot runoff and directing them into a component of the stormwater system. Lots that
will naturally drain into the system are not required to provide these additional measures.
Section 5. Each Owner of a Lot which borders a water retention area, drainage easement
or drainage swale area shall be responsible to maintain any portion of that Owner's lot lying
within a retention area, drainage easement, or drainage swale area free of debris but shall not
remove any wetlands species or do anything that would affect adversely water quality within the
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water retention area.No structure of any type shall be permitted within the water retention areas,
drainage easements or drainage swale areas.
Swimming and bathing in water retention areas are prohibited. Docks or other structures shall
not be erected in water retention areas without the prior written consent of the Association. All
other uses of water retention areas shall be subject to the prior written approval of the
Association and such rules and regulations as the Association may adopt from time to time.
ARTICLE XIII
GENERAL PROVISIONS
Section 1. Enforcement. The Association or any Owner shall have the right to enforce, by
proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens and
charges now or hereafter imposed by the provisions of this Declaration. Failure by the
Association or an Owner to enforce any covenant or restriction herein contained shall in no event
be deemed a waiver of the right to do so thereafter. Further,the Board of Directors shall have the
right to record in the appropriate land records a notice of violation of this Declaration or the
Bylaws of the Association, or any rules, regulations, use restrictions, or design guidelines
promulgated by the Association and to assess the cost of recording and removing such notice
against the Owner in violation of the Declaration.
Section 2. Severability. Invalidation of anyone of these covenants or restrictions by
judgment or court order shall in no way affect any other provision, which shall remain in full
force and effect.
Section 3. Amendment. For so long as Declarant owns any Lot or Unit within the
Properties, this Declaration may be amended by the Declarant, without the consent or joinder of
any other Owner or the Association. Any such amendment shall be effective upon recording of
same in the applicable public registry for Brunswick County, North Carolina. No amendment
shall be binding upon any Lot or Owner until fifteen (15) days after a copy of such amendment
has provided to such Owner.
The covenants and restrictions of this Declaration, and any amendments thereto, are
appurtenant to and shall run with and be binding upon the Properties and the Owners thereof for
a term of twenty-five (25) years from the date this Declaration is recorded, after which time they
shall be automatically extended for successive periods of ten (10) years unless terminated or
amended by a vote of the Owners as set forth below.
Subject to the provisions of Section 8(e) hereof and after Class B Lots cease to exist, this
Declaration may be amended during the first twenty-five year period by an instrument signed by
the Owners of not less than seventy-five percent (75%) of the Lots and terminated during the
first twenty-five year period by an instrument signed by the Owners of not less than eighty
percent (80%) of the Lots, and thereafter amended by an instrument signed by the Owners of not
less than sixty-seven percent (67%) of the Lots or terminated by an instrument signed by the
Owners of not less than eighty percent (80%) of the Lots, provided, however, that so long as
there is Class B membership, no amendment adopted by the Owners shall be effective unless and
until such amendment is approved in writing by the Declarant. Amendment or termination shall
be by written instrument signed by the appropriate persons or entities and recorded in the
applicable public registry for Brunswick County, North Carolina, and upon recordation, shall be
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binding on all Lots and Units within the Properties and the Owners thereof, without regard to
whether the Owner of such Lot voted for or against or signed or did not sign the amendment.
Section 4. Interpretation. Headings used herein are for indexing purposes only and shall
not be used as a means of interpreting or construing any provision hereof. Unless the context
otherwise requires, the use herein of the singular shall include the plural and vice versa: the use
of one gender shall include all genders; and the use of the word "including" shall mean
"including, without limitation". This Declaration and the provisions thereof shall be construed
and enforced in accordance with the laws of the State of North Carolina .
Section 5. Subdivision of Lots. No Lot within the Subdivision may be subdivided by sale
or otherwise so as to reduce the total Lot area shown on the recorded plat, except by or with the
consent of the Declarant and, if required,by the appropriate governmental authority.
Section 6. Declarant's Right To Change Development. With the approval of the
appropriate governmental authority, and subject only to such terms and conditions as said
authority may impose, Declarant shall have the right, without consent or approval of the Owners,
to create Lots and Units, add Common Area, and reallocate Lots or Units within the Properties.
Declarant may convert any lot or lots or any other property subject to these restrictions to use as
a roadway and road right-of-way.
Section 7. Rules and Regulations: Enforcement. The Board of Directors shall have the
authority to adopt additional rules and regulations governing the use of the Common Area and
the Lots within the Subdivision and shall furnish a written copy of said rules and regulations to
the Owners) of each Lot at least fifteen (15) days before such rules and regulations become
effective.
In addition to any other rights and remedies that the Association may have under the
Bylaws and this Declaration, the Association may impose sanctions for a violation of this
Declaration, the Bylaws of the Association, the rules and regulations adopted Association, and
any restrictive covenants applicable to the Properties, in accordance with procedures set forth in
the Bylaws, which sanctions may include, without limitation, reasonable monetary fines, which
shall constitute a lien upon the Lot of the violator, and suspension of the right to vote and the
right to use the Common Area any facilities thereon.
In addition, as provided in the Bylaws, the Association may exercise self-help to cure
violations (specifically including, but not limited to, the towing of Owner and tenant vehicles
that are in violation of parking rules) and may suspend the right of an Owner to use any Common
Area and recreational facility within the Properties if the Owner is more than 30 days delinquent
in paying any assessment or other charge due to the Association.
The Association shall at all times have the right and easement to go upon any Lot for the
purposes of exercising its rights hereunder, including, but not limited to, enforcement of the
architectural guidelines applicable to the Properties. Any entry onto any Lot for purposes of
exercising this power of self-help shall not be deemed as trespass. All remedies set forth in this
Declaration and the Bylaws shall be cumulative of any remedies available at law or in equity. In
any action to enforce its rights and remedies, if the Association prevails, it shall be entitled to
recover all costs, including, without limitation, attorneys' fees and court costs, incurred in such
action.
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The Association shall not be obligated to take action to enforce any covenant, restriction
or rule which the Board reasonably determines is, or is likely to be construed as, inconsistent
with applicable law, or in any case in which the Board reasonably determines that the
Association's position is not strong enough to justify taking enforcement actions. Any such
determination shall not be construed as a waiver of the right to enforce such provisions under
other circumstances or to estop the Association from enforcing any other covenant, restriction or
rule.
Section 8. Dispute Resolution.
(a) Consensus for Association Action.
(1) Except as provided in this Section, the Association may not commence a legal
proceeding or an action under this Article without the approval of at least two-thirds of the
Members. The foregoing shall not apply to: (i) actions brought by the Association to enforce the
provisions of this Declaration, the Bylaws, or rules and regulations adopted by the Association
(hereinafter collectively referred to as the ("Governing Documents"); (ii) the imposition and
collection of assessments; (iii) proceedings involving challenges to ad valorem taxation: or (iv)
counterclaims brought by the Association in proceedings against it.
(2) Prior to the Association or any Member commencing any proceeding to which
Declarant is a party, including, without limitation, a proceeding based on an alleged defect in any
improvement, Declarant shall have the right to be heard by the Members, or the particular
Member, and to have access to inspect and correct the condition of or redesign any portion of
any improvement as to which a defect is alleged or to otherwise correct or resolve the dispute.
(b) Alternative Method for Resolving Disputes. Declarant, its officers, directors,
employees and agents, the Association, its officers, directors and committee members, all
Owners, Members, any Builder, its officers, directors, employees and agents, and any other
person or entity not otherwise subject to this Declaration who agrees to submit to this Section 8
(each such person or entity being herein referred to as a "Bound Party" or, in groups, as the
"Bound Parties") each agrees to encourage the amicable resolution of disputes, without the
emotional and financial costs of litigation. Accordingly, each Bound Party covenants and agrees
to submit those claims, grievances and disputes described in Subsection (c) hereof (herein
referred to as the "Claims")to the procedures set forth in Subsection(d)hereof.
(c) Claims. Unless specifically exempted below, all Claims between any of the Bound
Parties, regardless of how such Claims might have arisen or on what they might be based,
including, but not limited to, Claims: (i) arising out of or relating to the interpretation,
application or enforcement of the Governing Documents or the rights, obligations and duties of
any Bound Party under the Governing Documents; (ii) relating to the design and construction of
improvements; or (iii) based on any statements, representation, promises, warranties, or other
communications alleged to have been made by or on behalf of any Bound Party, shall be subject
to the provisions of Subsection(d)hereof.
Notwithstanding the foregoing, unless all parties to any such dispute otherwise agree in
writing, the following shall not be deemed to be Claims covered by this Subsection (c) and shall
not be subject to the provisions of Subsection(d):
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(1) any proceeding by the Association against any Bound Party to enforce the provisions
of Article V of this Declaration:
(2) any proceeding by the Association or the Declarant to obtain a temporary restraining
order or injunction(or equivalent equitable relief) and such other ancillary relief as the court may
deem necessary in order to maintain the status quo and preserve the Association's or the
Declarant's ability to act under and enforce the provisions of Articles VIII and XI of this
Declaration;
(3) any proceeding between or among Owners, which does not include the Declarant, a
Builder, or the Association as a party, if such proceeding asserts a Claim which would constitute
a cause of action independent of the Governing Documents; or
(4) any proceeding in which no Bound Party is an indispensable party.
With the consent of all parties thereto, any dispute involving any of the foregoing
excepted actions may be submitted to the alternative dispute resolution procedures set forth in
Subsection(d).
(d) Mandatory Procedures.
(1) Notice. Any Bound Party having a Claim (the "Claimant") against any other Bound
Party (the "Respondent") (the Claimant and the Respondent being herein individually referred to
as a "Party" and collectively as the "Parties") shall notify each Respondent in writing (the
"Notice"), stating plainly and concisely:
(i) the nature of the Claim, including the persons or entities involved and the
Respondent's role in the Claim:
(ii) the legal basis of the Claim (i.e., the specific provisions of the Governing
Documents or other authority out of which the Claim arises);
(iii) the proposed remedy; and
(iv) the fact that Claimant will meet with Respondent to discuss in good faith
ways to resolve the Claim.
(2) Negotiation and Mediation.
(i) The Parties shall make every reasonable effort to meet in person and confer
for the purpose of resolving the Claim by good faith negotiation. If requested in uniting,
accompanied by a copy of the Notice, the Board of Directors of the Association may appoint a
representative to assist the Parties in their negotiations.
( ii) If the Parties do not resolve the Claim within 30 days after the date of the
Notice (or within such other time period as may be agreed upon by the Parties), Claimant shall
have an additional 30 days in which to submit the Claim to mediation under the auspices of the
American Arbitration Association ("AAA") in accordance with the AAA's Commercial or
Construction Industry Mediation Rules, as appropriate.
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(iii) If Claimant does not submit the Claim to mediation within such time, or does
not appear for the mediation. Claimant shall be deemed to have waived the Claim, and
Respondent shall be released and discharged from any and all liability to Claimant on account of
such Claim; provided, nothing herein shall release or discharge the Respondent from any liability
to any person or entity other than the Claimant.
(iv) Any settlement of the Claim through negotiation or mediation shall be
documented in writing and signed by the Parties. If the Parties do not settle the Claim within 30
days after submission of the matter to AAA mediation, or within such other time as may be
determined by the mediator or agreed to by the Parties, the mediator shall issue a written notice
of termination of the mediation process, which notice shall state that the Parties are at an impasse
and set forth the date that mediation was terminated (hereinafter "Termination of Mediation").
(v) Each Party shall bear its own costs of the mediation, including attorneys' fees,
and each Party shall share equally all fees and expenses of the mediator and the administrative
fees of mediation. If the Parties agree to a resolution of a Claim through negotiation or mediation
as set forth in this Subsection (d), and any Party thereafter fails to abide by the terms of the
settlement agreement, any other Party may file suit or initiate arbitration proceedings to enforce
the agreement without the need to again comply with the procedures set forth in this Subsection
(d). In such event, the Party taking action to enforce the agreement shall be entitled to recover
from the non-complying Party (or, if more than one Party is in noncompliance, from all non-
complying Parties pro rata) all costs incurred by such Party in enforcing the agreement,
including,without limitation, attorneys' fees and court costs.
(3) Binding Arbitration.
(i) After Termination of Mediation, Claimant shall be entitled to submit the
Claim to final, binding arbitration under the auspices of the AAA in accordance with the AAA's
Commercial or Construction Industry Arbitration Rules, as appropriate. No Claim subject to this
Subsection (d), whether by the provisions thereof or by agreement of the Parties, shall be
submitted to or decided by or in a court of law. Any judgment upon the award entered by the
arbitrator may be entered in and enforced by a court of competent jurisdiction. If the amount
claimed by the Complainant or, by the Respondent in a counterclaim, exceeds $250,000, the
Claim shall be heard and determined by three arbitrators. Otherwise, unless the Parties otherwise
agree, the Claim shall be heard and determined by an arbitrator. An arbitrator shall have
expertise in the areas) of the Claim, which may include legal expertise if legal issues are
involved.
(ii) Each Party shall bear its own costs of the arbitration, including attorneys'
fees, and each Party shall share equally all fees and expenses of the arbitrator and the
administrative fees of arbitration.
Notwithstanding the foregoing, if a Party unsuccessfully contests the validity or scope of
arbitration in a court of law, the non-contesting Party shall be awarded reasonable attorneys' fees
and expenses incurred in defending such contest. All decisions regarding the arbitrability of any
Claim shall be decided by the arbitrator(s).
(iii) The award of the arbitrators shall be accompanied by detailed written
findings of fact and conclusions of law. Except as required by law or for confirmation of an
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award, neither a Party nor an arbitrator may disclose the existence, content, or results of any
arbitration hereunder without the prior written consent of all Parties involved in the arbitration.
(e) Amendment of Subsection. Notwithstanding any other provision of this Declaration,
this Subsection 8 may not be amended prior to the expiration of 20 years from the date of
recording of this Declaration without the prior written consent of the Declarant.
[SIGNATURES ON FOLLOWING PAGE]
[Remainder of page intentionally left blank]
föECEVE
lig AUG 15 2007
PROJ# DWQ
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Signed, Sealed and Delivered in the presence of: DECLARANT:
, a
Witness Number 1
By:
Witness Number 2 Name:
Title:
Date Executed:
Signed, Sealed and Delivered in the presence of: DECLARANT:
, a
Witness Number 1
By:
Witness Number 2 Name:
Title:
Date Executed:
STATE OF )
COUNTY OF )
I, , a Notary Public for , do hereby certify that
, the _ of , a
, personally appeared before me this day and acknowledged
the due execution of the foregoing instrument.
Witness my hand and seal this day of
(SEAT.)
Notary Public for
My commission expires:
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EXHIBIT A"
Legal Description of Property
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EXHIBIT"B"
Legal Description of Additional property
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