SW8041114_HISTORICAL FILE_20180308

STORMWATER DIVISION CODING SHEET
POST -CONSTRUCTION PERMITS
PERMIT NO.
SW_����
DOC TYPE
❑ CURRENT PERMIT
❑ APPROVED PLANS
HISTORICAL FILE
❑ COMPLIANCE EVALUATION INSPECTION
DOC DATE
YYYYMMDD

ROY COOPER
Governor
MICHAEL S. UGAN
Secretary
S. DANIEL SMITH
Interim Director
`'larch S. 201 S
Coastal Dream, Homes, LLC
Attn: Richard Rogge, Mciriber/Manager
P.O. Box 2020
Carolina Beach, NC 28428
NORTH CAROLINA
Environmental Quality
Subject: Notice of Permit Extension, Renewal Request, and Transfer Request
State Storniwaler Management Permit No. SW8 041114
]Island Forest Subdivision
New Hanover County
Dear Nir. Rogge:
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 (DENILR). All previous references to
DWQ will. remain in older stormwater permits issued prior to August 1, 2013 until they are modified,
transferred, or renewed. Please note that this letter references DF-MLR 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 '"later 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 vear for a total of four (4) years extension. Accordingly, this permit, which was set to expire on
November 24, 2004, shall now be effective from the date of issuance until November.24, 2018, which includes
all available extensions.
State Stormwater Management Permit #SW8 0411 14 for the subject project was last issued on November 24 to
Coastal Dream Homes, LLC and expired on November 24, 2018 as noted above. Per 15A NCAC 2H.1045(3)
(the stormwater rules), applications for permit renewals shall be submitted ISO days prior to the expiration of a
permit and must be accompanied by a processing fee, which is currently set at S505.00. Please complete and
submit a renewal application prior to April 11, 2019. The renewal application can be found at the following
website under the Applications Forms section: https://deq.nc.gov/about/divisions/energy-mineral-land-
resources/energy-mineral-land-Tales/stormwater-program/post-construction. Please note that if they have not
already been submitted to the Division, the permit renewal request must be accompanied by the required
Designer's Certification and the recorded documents (if applicable).
Additionally, a review of the North Carolina Secretary of State corporation's database revealed that this
corporation has a new address and new point of contact. Please submit a completed Permit Information Update
Form to correct your contact information which is available on our website at:
https:fldeq.nc-gov/about/di\,isions/energy-mineral-land-resources/e,Dergy-mineral-laiid-rul,es/stormwate-T-
pro grain/post- construction. '
Please be advised thai you are required to comply with the teens, conditions and limitations of the Stormwater
Management Permit under Title 15A North Carolina Administrative Code 2H .1003 and North Carolina
General Statute 143-214.7 until you submit the required Permit Transfer Application Form to the Division and
receive approval from the Division to transfer the permit. This includes providing the necessary operation and
maintenance of the permitted stormwater system. Please note that State Stormwater permits do not
automatically transfer with the sale of a property. The Permit Transfer Application Form is available on our
website at: https://deq.jic.gov/about/divisions/eiiergv-mineral-land-resources/energy-mineral-land-
ru l es/stormwater-program/post-construction.
�� North Carolina Department or Environmental Quality I Division of Energy, Mineral and Land Resources
11 )-__ EWilmington Regional Office I t27 Cardinal Drive Extension I Wilmington, North Carolina 28405
�ocrn-• caouw.
910.796.7215

State Stormwater Permit No. S"18 041114
Page 2 of 2
The operation of the stormwater treatment system without a valid and active permit, and/or failure to provide
the Designers Certification and/or failure to operate and maintain the stormwater treatment system, are
violations of \CGS 143 Article 21 and may result in appropriate enforcement action. If you have any questions
regarding this matter; please contact Garrett 7,orda at [phone] or garrett.zorda`�7rncdenr.gov.
Sincerely,
.c3 k r.%�-� r' :Sim,+
,Danny Smith; Interim Director
Division of Energy, Mineral and land Resources
GDS/gdz: 111Stormwater\Perrnits & Projects120041041114 1-1D12019 03 req_ren 041114
cc: Wilmington Regional Office File

NCDENR
North Carolina Department of Environment and Natural Resources
Beverly Eaves Perdue
Governor
March 4, 2010
Division of Water Quality
Coleen H. Sullins
Director
Mr. Richard Rogge, Member/Manager
Coastal Dream Homes, LLC
PO Box 2020
Carolina Beach, NC 28428
Subject: NOTICE OF INSPECTION
Island Forest Subdivision
Permit No. SW8 041114
New Hanover County
Dear Mr. Rogge:
Dee Freeman
Secretary
On March 2, 2010, Angela Hammers of the Wilmington Regional Office of the Division}
of Water Quality (DWQ) inspected Island Forest Subdivision in New Hanover County to
determine compliance with Stormwater Management Permit Number SW8 041114
issued on November 24, 2004. DWQ file review and site inspection revealed that the
site is compliant with the terms and conditions of this permit. Please find a copy of the
completed form entitled "Compliance Inspection Report" attached to this letter.
Please be advised that you are required to comply with the terms, conditions and
limitations of your Stormwater Management Permit under Title 15A North Carolina
Administrative Code 2H .1003 and North Carolina General Statute 143-214.7, including
operation and maintenance of your permitted stormwater system.
If the project has changed name, ownership or mailing address, a formal change of
name/ownership form must be submitted to DWQ within 30 calendar days detailing the
change. Please provide the name, mailing address and phone number of the person or
entity that is now responsible for this permit.
Please be advised that violations of your Stormwater Management Permit may be
subject to the assessment of civil penalties of up to $25,000 per day per violation. If you
have any questions please contact the Angela Hammers at the Wilmington Regional
Office, telephone number (910)-796- 7215.
Sincerely,
7 f IA711 4 700"`
Angela Hammers
Environmental Specialist
Enclosure: Compliance Inspection Report
GDSlakh: S:1WQSlSTORMWATERIINSPECT1041114.mar10
cc: John Hennessy-NPS-ACOU
WiRO Files; DWQ Central Files
Wilmington Regional Office
127 Cardinal Drive Extension, Wilmington, North Carolina 28405
Phone: [phone] PAX: 910-350-20041 Customer Service: 1-877-623-6748
Internet: www.ncwaterquality.org
An Equal Opportunity 1 Affirmative Acton Employer
NorthCarolina
Aaturallrf

Al'iA
NCDENR
North Carolina Department of Environment and Natural
Division of Land Resources
James D. Simons, PG, PE
Director and State Geologist
Land Quality Section
September 2, 2005
RE :iV D
S E P 0 6 2005
BY:
Resources
NOTICE OF VIOLATIONS OF THE
SEDIMENTATION POLLUTION CON'CROL ACT
CERTIFIED MAIL 7005 0390 0001 3200 1504
RETURN RECEIPT REQUESTED
Coastal Dream Homes, LLC
Richard Rogge, Mbr
PO Box 2020
Carolina Beach, NC 28428
RE: Project Name: Island Forest
Project FD: Newha-2005-135
County: New Hanover
Compliance Deadline: 10 days from receipt
Dear Mr. Rogge:
Michael F. Easley, Governor
William G. Ross Jr., Secretary
On September 1, 2005, personnel of this office inspected a project located on Bennett Lane, Town of
Carolina Beach, in New Hanover County, North Carolina. This inspection Was performed to
determine compliance with the North Carolina Sedimentation Pollution Control Act (Act) of 1973.
The inspection revealed a land -disturbing activity of approximately 5.7 acres being conducted.
It is our understanding that you and/or your firm are responsible for this land -disturbing activity. The
purpose of this letter is to infonn you that this activity was found to be in violation of the Act, G.S.
113A-50 to 66, Title 15A, North Carolina Administrative Code (NCAC), Chapter 4. If you feel that
you are not responsible for the following violations, please notify this office immediately.
The violations that were found are:
b. Failure to conduct a land -disturbing activity in accordance with the provisions of an approved
erosion and sedimentation control plan. 15 NCAC 4B .01 13. Ground cover has not been
established Per annroved plans on banks of t)ond and slopes adiacent to roadways and has caused
erosion and sediment loss. Inlet protection has not been installed to protect storm water inlets and
sediment has eroded off site into the local storm water system.
Wilmington Regional Office
127 Cardinal Drive EA, Wilmington, North Carolina 28405-3845 • Phone: [phone] FAX: [phone]

13
• W. Dan Bell
Attorney and Counselor at Law
PO Box 136
206 K Avenue, Ste. 205
Kure Beach NC 28449
910/458-4370 Fax [phone]
email [e-mail]
August 11, 2005
Linda Lewis, Environmental Engineer II
North Carolina Division of Water Quality
Wilmington Regional Office
127 Cardinal Drive Extension
Wilmington NC 28405-3845
Re: Coastal Dream Homes
Island Forest
Stormwater Project No. SW8-041 114
Dear Ms. Lewis:
BY FAX AND MAIL
Rick Rogge forwarded me your letters of July 15 and July 26. I've not been able
to contact you by telephone although I realize you have called back.
After reviewing Island forests' covenants, I'm confident that the developer, as the
Declarant, has the right to amend the covenants without submitting them to lot owners for
approval. I will be glad to direct you to the controlling sections of the covenants.
I am enclosing the recorded Amendment to Declaration of Covenants, Conditions
and Restrictions.
If you are not completely satisfied, please contact me immediately.
Wit
W.
CC: Coastal Dream Homes

FOR REG,,rRATl
ON WRESECCA ONREGISTER OF pEFDS
HANOVERPCOU YTY NC
2005 PUG 10 03-58.40 PM
9K: 4687 PG:2343-2346 FEE: $20.00
1NSM01 # 200552#
AMENDMENT TO DECLARATION OF COVENANTS, CONDITIONS AND
RESTRICTIONS
The Declaration of Covenants, Conditions and Restrictions of the Island Forest
Homeowners Association dated October 27, 2004, and recorded October 28, 2004, in
Book 4546 at Page 734 is hereby amended to include the following provisions.
In accordance with Title 15 NCAC 2H.1000, the Coastal Stormwater
Management Regulations, deed restrictions and protective covenants are required for
certain developments where lots will be subdivided and sold. Deed restrictions and
protective covenants are necessary to ensure that the development maintains a "built -
upon" surface area consistent with the applicable regulation limiting built -upon area. The
following deed restrictions and covenants must be recorded prior to issuing the
Stormwater Management Permit:
L _For_All.Projects::
L The following covenants.are intended to ensure, ongoing compliance with State
Stormwater Management Permit Number lSW804114_3 as issued by the Division
of Water Quality under NCAC 2H.1000.
2. The State of North Carolina is made a beneficiary of these covenants to the extent
necessary to maintain compliance with the stormwater management permit.
3. These covenants are to run with the land and be binding on alt persons and parties
claiming under them.
4. The covenants pertaining to stormwater may not be altered or rescinded without
the express written consent of the State of North Carolina, Division of Water
Quality.
5. Alteration of the drainage as shown on the approved plan may not take place'
without the.concurrence of the Division of Water. Quality.'.
II. For. High Density Residential Subdivisions: (In addition to Li — L5 and
all other that apply)

^, s .
�= �k_ si
f '. 1 �:
�,
E� 7 . _
s =
t t
�'' ' ..
.� �
r%i _
. �] _

The maximum allowable built -upon area per lot is 3000 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.
If the BUA per lot varies, please record as follows and provide a complete lot
listing with proposed BUA:
The maximum allowable built -upon area per tot is a follows:
Lot # BUA Lot # BUA Lot # BUA
These allotted amounts include 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.
All runoff from the built -upon areas 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 to collect lot runoff and directing them into the stormwater system or into
the street. Lots that will naturally drain into the system are not required to
provide these additional measures.
All other provisions of the recorded Declaration remain in full force and effect.
Dated this 23rdday of November, 2004
DECLARANT
C al Dream Ho WZLC
BY: Ric d C. Rogge
ITS: Member/Manager

m

N
STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
I, the undersigned Notary Public of the County and State aforesaid, certify that
Richard C. Rogge personally appeared before me this day and acknowledged that he is
Member/Manager of Coastal Dream Homes, LLC, a North Carolina limited liability
company, and that by authority duly given and as the act of the corporation, execuuled the
foregoing instrument. Witness my hand and Notarial stamp or seal this 2.3r day of
NoV eK6e r, 2004.
Notary Public
My commission expires: _ q � 13 D © G
HOMEOWNERS ASSOCIATION
Is d Forest Hom rs Association, Inc.
BY: Ric d 'C. Rogge
ITS: President of the Board of Directors
STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
I, the undersigned Notary Public of the County and State aforesaid, certify that
Richard C. Rogge personally appeared before me this day and acknowledged that he is
President of the Board of Directors of Island Forest Homeowners Association, Inc., a
North Carolina non-profit corporation, and that by authority duly given and as the act of
the corporation, ,,x�ecuted the foregoing instrument. Witness my hand and Notarial stamp
or seal this 3 r°fday of Move" Q. r , 2004.
My commission expires: 91 / 3 /a OO&
kin
.%``" �'"�' -
.•' �0Tg9�,•;

l�
39
REBECCA P. SMITH
REGISTER OF DEEDS, NEW HANOVER
216 NORTH SECOND STREET
WILMINGTON, NC 28401
Filed For Registration: . 08/1012005 03:58:40 PM
Book: RE 4887 Page: 2343-2346
Document No.: 2005045524
AMD DECL .4 PGS $20.00
Recorder: MICAH PHELPS
State of North Carolina, County of New Hanover
The foregoing certificate of KATHLEEN M GLASSCOCK Notary is certified to be correct. This 10TH of August
2005
REBECCA P. SMITH, REGISTER OF DEEDS
By:
Deputy/AsshWnt Register of Deeds
YELLOW PROBATE SHEET IS A VITAL PART OF YOUR RECORDED DOCUMENT,
PLEASE RETAIN WITH ORIGINAL DOCUMENT AND SUBMIT FOR RE-RECORDING.
*2005045524*
2005045524

.` �, i,,
;;,y .,.

�g 11 05 10.14a P.
' W. Dan Bell
Attorney and Counselor at Law
PO Box 136
206 K Avenue, Ste. 205
Kure Beach NC 28449
910/458.4370 Fax [phone]
email [e-mail]
fax
To.
r
From:
Date: l�
Subject: �iSG,vi�
This contains J�— pages including the cover sheet.

nue 11 os 10:14a
p.2
W. Dan Bell
Attorney and Counselor at Law
PO Box 136
206 K Avenue, Ste. 205
Kure Beach NC 28449
910/458-4370 Fax [phone]
email lawbellenuvox.net
August 11, 2003
Linda Lewis. Environmental Engineer II
North Carolina Division of Water Quality
Wilmington Regional Office
127 Cardinal Drive Extension
Wilmington NC 28405-3845
Re: Coastal Dream Homes
island Forest
Storrnwater Project No. SW8-04I 114
Dear Ms. Lewis:
BY FAX AND MAIL
Rick Rogge forwarded me your letters of July 15 and July 26. I've not been able
to contact you by telephone although I realize you have called back.
After reviewing Island Forests' covenants, I'm confident that the developer, as the
Declarant, has the right to amend the covenants without submitting them to lot owners for
approval. I will be glad to direct you to the controlling sections of the covenants.
I am enclosing the recorded Amendment to Declaration of Covenants, Conditions
and Restrictions.
If you are not completely satisfied, please contact me immediately.
Wit
W.
CC: Coastal Dream Homes

Aug 11 05 10: 14a
p.3
FoR REGI5TRATION REGISTER OF OEEOS
WRNANOVCRpCOURTYk NC
28M AUG 10 03:58: �� PM
8K:4887 PG:2343-2346 FEE120.00
191MY 12N544 N
AMENDMENT TO DECLARATION OF COVENANTS, CONDMONS AND
RESTRICTIONS
The Declaration of Covenants, Conditions and Restrictions of the Island Forest
Homeowners Association dated October 27, 2004, and recorded October 28, 2004, in
Book 4546 at Page 734 is hereby amended to include the following provisions.
In accordance with Title 15 NCAC 2H.1000, the Coastal Stormwater
Management Regulations, deed restrictions and protective covenants are required for
certain developments where lots will be subdivided and sold. Deed restrictions and
protective covenants are necessary to ensure that the development maintains a "built -
upon" surface area consistent with the applicable regulation limiting built -upon area. The
following deed restrictions and covenants must be recorded prior to issuing the
Stormwater Management Permit:
L For AA Projects:
L The following covenants are intended to ensure ongoing compliance with State
Stormwater Management Permit Number SW804II4, as issued by the Division
of Water Quality under NC AC 2H.1000.
2. The State of North Carolina is made a beneficiary of these covenants to the extent
necessary to maintain compliance with the stormwater management permit.
3. These covenants are to run with the land and be binding on aU persons and parries
claiming under them.
4. The covenants pertaining to stormwater may not be altered or rescinded without
the express written consent of the State of North Carolina, Division of Water
Quality.
5. Alteration of the drainage as shown on the approved plan may not take place
without the concurrence of the Division of Water Quality.
U. For High Density Residential Subdivisions: (In addition to L I — L5 and
all other that apply)
low TO WX S&L

Aug 11 05 10:14a
p.4
The maximum allowable built -upon area per lot is 3000 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. Bunt 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. -
tf the BUA per lot varies, please record as follows and provide a complete lot
listing with proposed BUA:
The maximum allowable built -upon area per lot is a follows;
Lot # BUA Lot # BUA Lot # BUA
These allotted amounts include 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,
2, All runoff from the built -upon areas 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 to collect lot runoff and directing them into the stormwater system or into
the street. Lots that will naturally drain into the system are not required to
provide these additional measures.
All other provisions of the recorded Declaration remain in lull force and effect.
Dated this �3 "day of November, 2004
DECLARANT
CUst al Dream Ho es, LC
BY. Ric C_ Rogge
ITS: Member/Manager

Rug 11 05 10:15a
p-5
STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
I, the undersigned Notary Public of the County and State aforesaid, certify that
Richard C. Rogge personally appeared before me this day and acknowledged that he is
Member/Manager of Coastal Dream Homes„ LLC, a North Carolina limited liability
company, and that by authority duly given and as the act of the corporation, execu ed the
foregoing instrument. Witness my hand and Notarial stamp or seal this , .3r�y of
NOV einber, 2004.
My commission expires: R t( 3 1 d, o 0 (°
HOMEOWNERS ASSOCIATION
Is d Forest Hom rs Association, Inc.
BY: Richafd C. Rogge
ITS: President of the Board of Directors
STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
1, the undersigned Notary Public of the County and State aforesaid, certify that
Richard C. Rogge personally appeared before me this day and acknowledged that he is
President of the Board of Directors of Island Forest Homeowners Association, Inc., a
North Carolina non-profit corporation, and that by authority duly given and as the act of
the corporation, executed the foregoing insmment. Witness my hand and Notarial stamp
or seal this,3 �dday of NoVe" a r , 2004.
1 M M 1 �, A M j Mo j �Mj L M-
Notary Public '-
My commission expires: _ 9 1 / 3 4 00(0

Rug 11 05 10:15a
P.6
4w
REBECCA P, SMITH
REGISTER OF DEEDS, NEW HANOVER
216 NORTH SECOND STREET
Filed For Registration:
Book:
Document No.:
Recorder:
WILMINGTON, NC 28401
OW1012005 03:50:40 PM
RE 4887 Page: 2343-2346
2005045524
AMD DECL 4 PGS $20.00
MICAH PHELPS
State of North Carolina, County of New Hanover
The foregoing certificate of KATHLEEN M GLASSCOCK Notary Is certified to be correct. This 'LOTH of August
2005
REBECCA P. SMITH, REGISTER OF DEEDS
By:
Deputy/Assn nt Register of Deeds
YELLOW PROBATE SHEET IS A VITAL PART OF YOUR RECORDED DOCUMENT.
PLEASE RETAIN WITH ORIGINAL DOCUMENT AND SUBMIT FOR RE-RECORDING.
*2005045524*
2005045524

�0F W A7F Michael F. Easley, Governor
�O G William G. Ross, Jr., Secretary
co r North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E. Director
Division of Water Quality
July 26, 2005
Mr. Richard Rogge, Member/Manager
Coastal Dream Homes, LLC
PO Box 2020
Carolina Beach, NC 28428
Subject: Recorded Deed Restrictions
Island Forest Subdivision
Stormwater Project No. SW8 041114
New Hanover County
Dear Mr. Rogge:
The Division received a copy of the recorded deed restrictions for the subject project.
Unfortunately, the amendment was signed about a month after the original document was
recorded, and a records search of the New Hanover County Property Records website
indicates that the amendment has not been recorded. In order for you to remain in compliance
with the permit and for the amendment to apply to the lots in this permitted subdivision, it must
be recorded.
In order to record the amendment now, you will need to follow the procedures set out in the
covenants for amending them. Alternatively, you may be able to record the amendment
without the signature of the lot owners if there is a condition in the restrictive covenants that
allows you to amend them without a majority vote to comply with any government agency
requirements.
Please have the amendment appropriately recorded such that it will apply to all lot owners, and
submit a copy of the recorded document to the Division within 30 days of recording. Failure to
record the amendment in a timely manner will be considered a violation of the permit, subject
to enforcement action. If you have any questions, please do not hesitate to call me at (910)
796-7404.
Sincerely,
Linda Lewis
Environmental Engineer 11
ENBlarl: S:IWQSISTORMWA-RLETTERS120051041114.ju105
cc: Wilmington Regional Office File
Tony Roberts
North Carolina Division of Water Quality 127 Cardinal Drive Extension Phone [phone] Customer 5ervicel-877-623-6748
Wilmington Regional Office Wilmington, NC 28405-3845 FAX [phone] Internet: h2o.enr.state.nc.us One
NorthCarolina
An Equal Opportunity/Affirmative Action Employer— 50% Recycled110% Post Consumer Paper Naturally

�oF \N kr,90 Michael F, Easley, Governor
�4 G William G. Ross, Jr., Secretary
r North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E. Director
Division of Water Quality
July 15, 2005
Mr. Richard Rogge, Member/Manager 1 �/
Coastal Dream Homes, LLC
PO Box 2020 �{
Carolina Beach, NC 28428
Subject: REQUEST FOR RECORDED DEED RESTRICTIONS
Island Forest
Stormwater Project No. SW8 041114
New Hanover County
Dear Mr. Rogge:
RECEIVED
JUL 2 2.2005
BY:
On November 24, 2004, the Wilmington Regional Office issued a Stormwater Management
Permit to you for Island Forest. Per the requirements of the permit, a copy of the recorded
deed restrictions must be forwarded within 30 days of the date of recording. A review of our
files indicates that, as of this date, a copy of the recorded deed restrictions has not been
received in this Office.
Failure to record and/or provide a copy of the recorded deed restrictions prior to selling lots is a
violation of your permit, and subject to enforcement action. Please either provide a written or
emailed status or the project, or forward a copy of the recorded deed restrictions to this Office
at the address below by August 15, 2005, or enforcement action may be initiated and may
include recommendations for' civil penalties and revocation of the permit.
If you have any questions, please do not hesitate to call me at [phone].
Sincerely,
�G'yjG�Gv G�
Linda Lewis
Environmental Engineer II
ENB/arl: S:1WQSISTORMWATIDEEDREST1041114.ju105
cc: Tony Roberts, New Hanover County Inspections
Wilmington Regional Office
Central Files
North Carolina Division of Water Quality 127 Cardinal Drive Extension Phone [phone] Customer Servicel-877-623-6748
Wilmington Regional Office Wilmington, NC 28405-3845 FAX [phone] Intemet: h2o.enr.state.nc.us ne
orthCarollina
An Equal OpportunitylAffirmative Action Employer— 50% Recycled110% Post Consumer Paper Alaturallry

2004037697
FOR REG157RATI7.ON REGISTER OF DEEDS
NEIJBHANOVER COl7NTTIAN
PG:73tc
2004 CT24-7626FEE:Ig
8K:4546 .0 0
PREPARED BY AND RETURN TO:
I1',1S1R��1ENl # 74aG0�i69i
W. Dan Bell
PO Box 136
Kure Beach NC 28449
STATE OF NORTH CAROLINA DECLARATION OF COVENANTS,
CONDITIONS AND RESTRICTIONS
COUNTY OF NEW HANOVER
THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
FOR ISLAND FOREST HOMEOWNERS ASSOCIATION, INC. (as may be amended or
supplemented as set forth herein, "Declaration") is made this 27th day of October, 2004, by
Coastal Dream Homes, LLC, a North Carolina limited liability company, whose address is PO
Box 2020, Carolina Beach NC 28428 (the "Declarant").
WITNESSETH:
A. Declarant is the owner and developer of certain real estate in New Hanover
County, North Carolina, and more particularly described on Exhibit A attached hereto and made
a part hereof (the "Property" or "Subdivision"); and
B. Declarant is developing the Property known as "Island Forest Subdivision" by
subdividing it into "Lots," that are to be used for residential purposes. A map of Island Forest
Subdivision has been recorded in Map Book 46, Page 380, at the New Hanover County Registry.
C. At the time of the conveyance of a Lot to an Owner, the Declarant intends to
make available the common amenities on the Property, if any, as they are built, and, at the time
of completed development, the entire Property, excluding the Lots and dedicated streets, if any,
shall be conveyed without cost or charge to the Association.
THEREFORE, the Declarant hereby declares that all of the Lots located within the
Subdivision are held and shall be held, conveyed, hypothecated or encumbered, leased, rented,
used; occupied and improved, subject to the following covenants, conditions and restrictions, all
of which are established and agreed upon for the purpose of enhancing and protecting the value,
desirability and attractiveness of the Subdivision as a whole and of each of said Lots. All of these
restrictions shall run with the land and shall be binding upon the Declarant and upon the parties
having or acquiring any right, title or interest, legal or equitable in and to the Property or any part

or parts thereof subject to such restrictions, and shall inure to the benefit of the Declarant and
every one of the Declarant's successors in title to any of the Property.
ARTICLE I
DEFINITIONS
Section 1.1 "Annual, Organizational Board ' Meeting" means the annual
organizational board meeting of the Board, which shall take place immediately after each Annual
Meeting of the Members.
Section 1.2 "Annual Meeting" means the annual meeting of the Members held in
New Hanover County, North Carolina, within the last quarter of each calendar year, upon proper
notice, at a date, time and at a place from time to time designated by the Board. The first Annual
Meeting of the Members shall be held within one (1) year from the date of incorporation on such
date as the initial Board shall determine.
Section 1.3 "Articles" or "Articles of Incorporation" shall, mean those articles,
filed with the Secretary of State of North Carolina, incorporating Island Forest Homeowners
Association, Inc., as a nonprofit corporation under the provisions of North Carolina State, law, as
the same may be amended from time to time.
Section 1.4 "Assessments" means Regular Assessments, Special Assessments,
Working Capital Assessments, Individual Assessments and Fine Assessments.
Section 1.5 "Association" shall mean and refer to ISLAND FOREST
HOMEOWNERS ASSOCIATION, INC., to be formed as a non-profit corporation, its
successors and assigns.
Section 1.6 "Board" or "Board of Directors" shall mean and refer to the Board of
Directors of the Association.
Section 1.7 "Bylaws" shall mean the Bylaws of the Association, as the same may
be amended from time to time.
Section 1.8 "Class A Members" shall mean as defined in Section 4.5.1 below.
Section 19 "Class B Members" shall mean as defined in Section 4.5.2 below..
Section 1.10 "Constituent Documents" shall mean the Declaration, the Bylaws, the
Articles of Incorporation; and the Rules and Regulations, if any, and any other basic documents
used to create and govern the Subdivision.
Section 1.11 "Common Areas" shall mean all the real estate (including retention
ponds, storm drainage improvements, entrance signage, streets (including any dedicated streets
prior to their acceptance for public maintenance) and ali landscaping and other improvements
2

thereon) owned by the Association for the common use and enjoyment of the Owners. Common
Areas shall include, but not be limited to, the Recreational Facilities and parcels designated on
the Subdivision plat as "Park'' (unless such parks are later dedicated to the public by a
subsequent dedication plat or.conveyance),"COS," "Open Space," "Alley (Private)," "Common
Area" or reserved as an access drive or private sireet.
Section 1.12 "Common Expenses" shall mean, refer to, and include all charges,
costs and expenses incurred by the Association for and in connection with the administration of
the Subdivision, including, without limitation thereof, operation of the, Subdivision, all premiums
for hazard, liability and other insurance with respect to the Subdivision; all costs incurred in
acquiring a Lot pursuant to judicial sale; and all administrative, accounting, legal, and
managerial expenses. "Common Expenses" shall also include all reserve funds or other funds
established by the Association. "Common Expenses" shall be construed broadly.
Section 1.13 "Declarant" shall mean -and refer to Coast Dream Homes, LLC., a
North Carolina limited liability company, its successors and assigns as a Declarant.
Section 1.14 "Default" shall mean any violation or breach of, or any failure to
comply with, the Restrictions, this Declaration or any other Constituent Documents.
Section 1.15 "Development Period" means the period commencing on the date on
which this Declaration is recorded in the New Hanover County Register of Deeds and
terminating on the earlier to occur of (i) when Declarant no longer owns a Lot in the
Subdivision; (ii) the date that Declarant relinquishes in writing Declarant's right to appoint
Directors; or (iii) the occurrence of the date ten (10) years from the date of recording the
Declaration, renewable for an additional ten (10) year period with the consent of a majority of
Lot Owners other than the Declarant.
Section 1.16 "Dwelling Unit" shall mean and refer to the individual family living
unit on an individual -Lot.
Section 1.17 "Fine Assessment" means the charge established by Section 5.5-.2 of
this Declaration.
Section 1.18 "Individual Assessment", means the charge established by Section 5.4
of this Declaration.
Section 1.19 "Lot" shall mean and refer to any parcel of land designated on the Plat
upon .which a Dwelling Unit has been or is to be constructed. The Declarant has initially created
eighteen (18) Lots in the Subdivision and has the right to establish additional Lots in accordance
with the terms of this Declaration.
Section 1.20 "Member" shall mean and refer to all those Owners who are Members
of the Association as provided in Article IV below.
3

Section 1.21 "Owner'.' shall mean and refer to the record owner, including
Declarant, whether one or more persons or entities, of a fee simple title to any Lot located within
the Subdivision.
Section 1.22 "Plat" shall mean and refer to the record plat of the Subdivision
recorded by Declarant, as the same may be amended or supplemented by Declarant from time to
time.
Section 1.23 1"Property" or "Subdivision" shall mean and refer to that certain real
estate described in Exhibit A and all other real estate that may be annexed into this Declaration
and the Association by the Declarant.
Section 1.24 "Regular Assessment" means the charge established by Article V of
this Declaration.
Section 1.25 "Resident" shall mean and refer to any person, not an Owner, living in
the Owner's DIIi,elling Unit, including, but not limited to, temporary guests and Tenants.
Section 1.26 "Restrictions" shall mean all covenants, conditions, restrictions,
easements, charges,.liens and other obligations provided for in this Declaration, including,
utvithout limitation, all notices, rules and regulations issued in accordance with this Declaration.
Section 1.27 "Rules and' Regulations" shall mean and include the rules and
regulations made from time to time by the Board of Directors as provided in Section 4.3 below.
Section 1.28 "Special Assessment" means the charge, established by Section 5.2 of
this Declaration.
Section 1.29 "Tenant" means any person occupying any Lot pursuant to a -written or
oral lease agreement with the Owner thereof or with any other person or entity claiming under
the Owner.
Section 1.30 "Working Capital Assessment" means the charge established by
Section 5.3 of this Declaration.
When applicable for the sense of this instrument, the singular should be read as including
the plural and the male, female, and neuter pronouns and adjectives should be read as
interchangeable.
ARTICLE II
PROPERTY SUBJECT TO THIS DECLARATION
The Property, each portion thereof, and all Dwelling Units thereon shall be held,
transferred, sold, conveyed; leased; mortgage and occupied subject to the terms, provisions;
covenants and conditions of this Declaration.
M

ARTICLE III
PROPERTY RIGHTS IN COMMON AREAS
Section 3.1 Owner's Easements of Enjoyment. Except as herein otherwise
provided, each Owner shall have a right and easement of enjoyment in and to the Common
Areas, which shall be appurtenant to and shall pass with the title to his Lot. Such rights and
privileges shall be subject, however, to the following:
3.1.1 The. right of the Board to suspend the right of any Owner or the
privilege of any Resident to use such of the Common Areas that are recreational in nature
as determined by the Board for any infraction of the Rules and Regulations relating to the
Common Areas for a period not to exceed sixty (60) days for each such infraction, or for
any non-payment or delinquency of the Assessments against such Owner's Lot for a
period not to exceed the period of such non-payment or delinquency;
3.1.2 The right of the Board to adopt and enforce and from time to time
amend reasonable limitations upon use and Rules and Regulations pertaining to the use of
the -Common Areas, including regulations limiting - gue.sts of Owners and Tenants who
may use the Common Areas at any one time;
3.1.3 All applicable provisions of valid easements and/or agreements of the
Association relating to the Common Areas, including, without limitation, the
Recreational Facilities Easement Agreement and the Roadway Declaration;
3.1.4 The right of -the Association to grant permits, licenses and public or
private. easements over Common Areas for utilities, roads and other purposes reasonably
necessary or useful for the proper maintenance or operation of the Property; or
3.1.5 The right of Declarant or the Association to dedicate or convey
portions of the Common Areas to applicable governmental authorities for park purposes.
Section 3.2. Extension of Use. Any Owner may extend his right of enjoyment to
the Common Areas to the immediate and/or extended members of his family, his Tenants, guests
or contract purchasers of the Owner's Lot.
Section 3.3 Title to Common Areas, The Declarant shall convey by deed all
Common Areas to the Association in fee simple absolute after the final platting of all Lots in the
Subdivision. Any such conveyance shall be subject to taxes for the year of conveyance, and to
restrictions, conditions, limitations and.easements of record.
Section 3.4 Use of Common Areas by Declarant. In addition to the specific rights
and easements reserved herein, Declarant and its affiliates and associates shall have the same
rights of use -and enjoyment of the Common Areas as the Class A Members during the
Development Period, and shall have the same right to use Common Areas for promotional, sales
and similar purposes until all of the Lots have been sold,
5

ARTICLE IV
HOMEOWNERS ASSOCIATION
Section 4.1 Homeowners Association. There is has been created a North Carolina
non-profit corporation, known as Island Forest Homeowners Association, Inc., which shall be
responsible for the maintenance, management and control of the Common Areas and upon each
Lot and Dwelling Unit as more specifically set forth in this Declaration.
Section 4.2 Board of Directors and Officers. The Board of Directors, and such
officers as the may elected or appointed in accordance with the Articles or the Bylaws, shall
conduct the affairs of the Association. The Board of Directors may'also appoint committees and
managers or other employees and agents who shall, subject to the general direction of the Board
of Directors, be responsible for the day-to-day operation of the Association.
Section 4.3 - Rules and Regulations. By a majority vote of the Board of Directors,
the Association may, from time to time adopt, amend and repeal Rules and Regulations with
respect to all aspects of the Association's rights, activities and duties under this Declaration. The
Rules and Regulations may, without limitation, govern use of the Subdivision, including
prohibiting: restricting or imposing charges for the use of any portion of the Subdivision by
Owners, Residents or others, interpret this Declaration or establish procedures for operation of
the Association or the administration of this Declaration; provided, however, that the Rules and
Regulations shall not be inconsistent with this Declaration, the Articles, Bylaws or the terms of
the Roadway Declaration or the Recreational Facilities Easement Agreement. A copy of the
Rules and Regulations, as they may from time to time be adopted, amended or repealed, shall be
maintained in the office of the Association and shall be available to each Owner upon request.
Section 4.4 Membership of Association. Every Owner of a Lot shall be a Member
of the Association. Such Owner and Member shall abide by the Association's Rules and
Regulations, shall pay the Assessments provided for in this Declaration, when due, and shall
comply with decisions of the Association's governing body. Conveyance of fee simple title to a
Lot automatically transfers membership in the Association without necessity of further
documents. Membership shall be appurtenant to and may not be separated from ownership of
any Lot that is subject to Assessment.
Section 4.5 Classes of Membership. The Association shall have two (2) classes of
Membership:
4.5.1 Class A Members. Every person, group of persons, or entity
which is a record Owner of a fee interest in any Lot upon which a Dwelling
Unit has been erected within the Property, shall automatically be a Class A
Member of the Association except the Declarant during the Development
Period; provided, however, that any such person, group of persons or entity
who holds such interest solely as security for the performance of an
obligation shall not be a Member. A Class A Membership shall be
appurtenant to and may not be separated from ownership of any Lot upon
which a Dwelling Unit has been constructed that is subject to Assessment.

Class A Members shall be entitled to one (1) vote for each Lot in which
they hold the interest required for membership. In the event that more than
one person, group of persons or entity is the record Owner of a fee interest
in any Lot, then the vote for the membership appurtenant to such Lot
portion shall be exercised as they among themselves determine; but in no
event shall more than one (1) vote be cast with respect to any Lot. in the
event agreement is not reached, the vote attributable to such Lot shall not be
cast.
4.5.2 Class B Members, The Class B Member during the
Development Period shall be the Declarant. The Class B Membership shall
cease and be converted to Class A membership upon the expiration of the
Development Period.
4.5.3 Voting. Each Member, shall have one vote with respect to
each Lot owned by such Member, but a Class A Member shall not be
entitled to -exercise any vote until the expiration of the Development Period.
Section 4.6
Section 4.7 Maintenance Obligation of the Lot Owners. The responsibilities of
each Lot Owner shall include:
4.7.1 To clean, maintain, keep in good order, repair and replace at
his or her expense all portions of his or her Lot and Dwelling Unit. Any
repair, replacement and maintenance work to be done by an Owner must
comply with any -Rules and Regulations of the Association including
architectural control and visual harmony.
4.7.2 To perform his responsibilities in such manner so as not
unreasonably to disturb other persons residing within the Subdivision.
4.7.3 Not* to paint or otherwise alter, decorate or change the
appearance of any exterior portion of his Dwelling Unit, without the written
consent of the Association.
4.7.4 Not to impair the use of any easement without first obtaining
the written consents of the Association and of the Owner or Owners for
whose benefit such easements exists.
Section 4,8 Construction Defects. The obligations of Owners to repair, maintain
and replace the portions of the Subdivision for which they are responsible shall not be limited,
discharged or unreasonably postponed by reason of the fact that any maintenance, repair or
replacement may be necessary to cure any latent or patent defects in materials or workmanship in
the construction of the project. The undertaking of repair, maintenance or replacement by or
Owners shall not constitute a waiver of any rights against any warrantor but such rights shall be
specifically reserved. Likewise, this Section 4.8 is not intended to work for the benefit of the
person or entity responsible for the construction defect.
7

Section 4.9 Effect of insurance or Construction Guarantees. Notwithstanding the
fact that any Lot Owner may be entitled to the benefit of any guarantee of material and
workmanship furnished by any construction trade responsible for any construction defects, or to
benefits under -any policies of insurance providing coverage for loss or damage for which they
are respectively responsible, the existence of construction guarantee or insurance coverage shall
not excuse any unreasonable delay by any Lot Owner in performing his obligation hereunder.
Likewise, .this Section 4.9 is not intended to work for the benefit of the person or entity
responsible for the construction defect.
,ARTICLE V
COVENANT FOR ASSESSMENTS
Section-5.1 Regular Assessments. Regular Assessments for the payment of the
Common Expenses shall be made in the manner provided herein, and in the manner provided in
the Bylaws. The Regular Assessment is established for the benefit and use of the Association
and shall be used in covering all of the Common Expenses,
Section 5.2 Working Capital Assessment. Upon the initial transfer of record of the
Lot from the Declarant (or successor declarant or designated declarant) to the Lot Owner (other
than a successor declarant or designated declarant), the purchaser is required to pay a sum of One
Hundred Dollars ($100) as his or her initial contribution to the working capital of the
Association, This sum is not an advance payment of the monthly Regular Assessment; rather the
sum is allocated to a working capital fund to meet unforeseen expenditures and operating
expenses or to purchase any additional equipment or services. While the Declarant is in control
of the Association, it cannot use any of the working capital funds to defray its expenses or
reserve contributions. When control of the Association is transferred to the Lot Owners, the
working capital fund shall be transferred to the Association for deposit to a segregated fund.
After control of the Association is transferred to the Lot Owners the Declarant shall be
responsible to collect the initial contribution to the working capital account and forward such
funds to the Association. Additionally, at the closing, each purchaser of a Lot is required to pay
a pro-rata share of the Regular Assessment due in the month of closing.
Section 5.3 Date of Commencement of Assessments; Due Dates; Determination of
Regular Assessments; Fine Assessments,.
5.3.1 The annual Regular Assessment provided for herein in the
initial amount of One Hundred Dollars ($100) shall commence as to each
Owner of a Lot, except Declarant, on the first day following the initial
conveyance of the Lot to the Owner and shall be adjusted according to the
number of days remaining in the month. The Declarant, its successors and
assigns, shall not be required to pay the Regular Assessment for any Lot
which it owns until such time as Declarant transfers the Lot to a third party.
The Board of Directors shall fix the amount and frequency of the Regular
Assessment to be paid by each Class A Member against each Lot. Written
notice of the monthly Regular Assessment shall be sent to every Class A
8

Member subject thereto. The Board of Directors shall establish the due
dates.
5.3.2 The Board of Directors, or an adjudicatory panel established
by the Board of Directors, may levy a reasonable Fine Assessment, as a fine
or penalty for violation of this Declaration, all in accordance with the
Planned Community Act. A lien may be filed for this Fine Assessment and
this Fine Assessment may be enforced by foreclosure and otherwise treated
as a Regular Assessment.
5.3.3 Both Regular and Special Assessments for a Lot Owner shall
be -determined by the Association based upon the proportion that each Lot
bears to the aggregate number, of Lots located on the Property, except those
owned by Declarant which are not assessed in accordance with Section
5.5.1 above.' The Association's governing body may, at its discretion,
waive the Regular Assessment for any year or part of a year for any Lot not
occupied as a residence.
Section 5.4 _ Billing. The Association shall inform each Lot Owner of the amount
of the total Regular Assessment due from the Owner of that particular Lot. This Regular
Assessment may be paid in annual installments or as otherwise required by the Association. The
Owner of each Lot must pay his Lot's required Regular Assessment in advance on the first
calendar day of each year, unless the Association otherwise directs. Payment is to be made to
such person at such an address as Association determines. Special Assessments are due thirty
(30) days after the bill for the Special Assessment has been mailed or otherwise .sent out by
Association, unless the Association otherwise directs. The Owners of the initial Lots in the
Subdivision, except Declarant, shall be obligated to begin paying the Regular Assessment as of
the first day of the initial conveyance of the Lot from Declarant to the Owner. If the Subdivision
is expanded and additional Lots are brought into the Subdivision during a given Assessment
year, those additional Lots shall begin paying the Regular Assessment on the first day of the
initial conveyance of the Lot from Declarant to the Owner.
Section 5.5 Common Surplus. If the Regular Assessment collected -in any given
year is in excess of the actual Common Expenses for that year, the Board may, at its sole
discretion (a) return each Owner's share of the Common Surplus; (b) credit each Owner's share
of the Common Surplus to each Owner's payment as for the Regular Assessment for the
following year; or (c) apply the Common Surplus to the reserve.
Section 5.6 Assessment Certificate. The Association shall, upon demand, at any
reasonable time, furnish to any Owner liable for Assessments a certificate in writing signed by an
Officer or other authorized agent of the Association, setting forth the status of said Assessments;
i.e.; "current", and if not current, "delinquent" "and the amount due. Such certificate shall be
conclusive evidence of the payment of any Assessment therein stated to have been paid. A
reasonable charge to cover labor and materials may be made in advance by the Association for
each certificate.
9

Section 5.7 Books and Records of the Association. The Association shall keep full
and correct books of account. The Association shall make available to all Lot Owners and the
holders. of all first mortgages on" Lots, current copies of the books, records and financial
statements of the Association upon reasonable request during normal business hours. All funds
collected by the Association shall be held and expended solely for the purposes designated by
this Declaration and shall be deemed to be held for the use, benefit and account of the
Association and'all of the Lot Owners. All books and records must be kept in accordance with
good accounting procedures and must be reviewed at least once a year by an independent
accounting firm.
Section 5.8 Non -Payment of Assessment. Any Assessments levied pursuant to
these covenants which is not paid on the date when due shall be delinquent and shall, together
with such interest and other costs as set out elsewhere in this Declaration, thereupon become a
continuing lien upon the Lot which.shall bind the Lot in the hands of the then Owner and the
Owner's successors and assigns.
If the Assessment is not paid within thirty (30) days after the due date, the Assessment
shall bear interest at a reasonable rate of ten percent (10%) per year or at such other reasonable
rate -set by Association in its minutes, not to exceed the maximum amount allowed by law, and
the Association may bring an action at law against the Owner personally obligated to pay the
same and/or foreclose the lien against the Lot, in either of which events interest, costs and
reasonable attorneys' fees shall be added to the amount of each Assessment. In addition to
interest, the Association may charge the Owner a fine not to exceed $1,000.00 for non-payment
of any assessment, the fine to be levied prior to filing the lien. No Owner may waive or
otherwise escape liability for the Assessments by non-use or waiver of use of the Common Areas
or by abandonment of his Lot.
Section 5.9 Priority of Association Lien. The lien provided for in this Article V
shall take priority over any lien or encumbrance subsequently arising or created, except liens for
real estate taxes and assessments and liens of bona fide first mortgages which have been filed of
record before a claim of this lien hereunder has been docketed in the office of the clerk of
superior court in New Hanover County, and may be foreclosed in the same manner as a
mortgage on real property under power of sale in an action brought by the Association in
accordance with the Planned Community Act, The Association is entitled to recover its
reasonable attorneys' fees and court costs and collection costs, as part of the lien. In any such
foreclosure action, the Association shall be entitled to become a purchaser at the foreclosure sale. .
Section 5.10 Purchaser at Foreclosure Sale Subject to Declaration, Bylaws, Rules
and Regulations .of the Association, Any purchaser of a Lot at a foreclosure sale shall
automatically become a Member of the Association and shall be subject to all the provisions of
this Declaration, the Bylaws and the Rules and Regulations.
Section 5.11 Non -Liability of Foreclosure Sale Purchaser for Past Due Common
Expenses. When the holder of a first mortgage or first deed of trust of record or other purchaser
of a Lot acquires title to the Lot as a result of foreclosure of the first mortgage first deed of trust
or by deed in lieu of foreclosure, such acquirer of title, his, her or its successors and assigns, shall
not be solely liable for the share of the Common Expenses or other .Assessments by the
a

Association chargeable to such Lot which became due prior to the acquisition of title to the Lot
by such acquirer, other than Assessments for which a claim of lien has been docketed with the
Ne1v Hanover County clerk of superior court prior to the recordation of the lien being foreclosed.
Such unpaid share of Common Expenses or Assessments shall be deemed to be Common
Expenses collectible from all of the Lots, including that of such acquirer, his, her or its
successors or assigns. This provision shall not relieve the party acquiring title or an), subsequent
Owner of the subject Lot from paying future Assessments.
Section 5.12 Liability for Assessments Upon Voluntary Conveyance. In a
voluntary conveyance of a Lot, any grantee or his or her first mortgagee shall inform the Board
of Directors in writing of such contemplated conveyance and such grantee or first mortgagee
shall be entitled to a statement from the Board of Directors of the Association setting forth the
amount of all unpaid Assessments (including current Assessments) against the grantor due the
Association. Neither the grantee nor the mortgagee shall be personally obligated for. any
delinquent Assessments, but such delinquent Assessments, along with interest, late charges, costs
and reasonable attorneys fees shall be a lien against the Lot in accordance with Section 5.10 and
Section 5.11 herein.
Section 5.13 Late Charge. The Association may impose a charge against any Lot
Owner who fails to pay any amount assessed by the Association against his Lot within ten (10)
days after such Assessments are due and payable and who fails to exercise his rights under this
Declaration or under the laws of the State of North Carolina to successfully contest such
Assessment. The amount of the late charge shall be the greater of (a) twenty and 00li 00 Dollars
(520.00), or (b) twenty percent (20%) of the delinquent amount, or such other amount as may be
determined by. the Association from time to time. Additionally, if a Lot Owner shall be in
Default in payment of an installment upon an assessment or of a single monthly assessment, the
Association has the right to accelerate all monthly Assessments remaining due in the current
fiscal year. The total of such Assessments, together with the delinquent Assessments shall then
be due and payable by the Lot Owner no later than ten (10) days after the delivery of written
notice of such acceleration to the Lot Owner or twenty (20 days) days after mailing of such
notice to him by certified mail, whichever occurs first. If such acceleration amount is not paid
by the due date, the above -described late charge may be imposed on the part of such accelerated
amount not paid by the due date.
Section 5.14 Miscellaneous.
5.14.1 The Association may change the interest rate due on
delinquent Assessments (including any late charges), except that the rate
cannot be changed more often than once every six (6) months. As of its
effective date, the new interest rate will apply to all Assessments then
delinquent.
5.14.2 The Owner has the sole responsibility of keeping the
Association informed of the Owner's current address if different from the
Lot owned. Otherwise notice sent by Association to the Lot is sufficient for
any notice requirement under this Declaration.

5.14.3 The lien under this Article V arises automatically, and no
notice of lien need be recorded to make the lien effective.
5.14.4 The Assessment lien includes all collection costs, including
demand letters, preparation of documents, reasonable attorneys' fees, court
costs; filing fees, collection fees, and any other expenses incurred by the
Association in enforcing or collecting the Assessment.
5.14.5 Any Assessment otherwise payable in installments shall
become immediately due and payable in full without notice upon Default in
the payment of any installment. The acceleration shall be at the discretion
of the Board.
5.14.6 This Section 5.17 applies to every type of Assessment.
ARTICLE VI
EASEMENTS AND ENCUMBRANCES
Section 6.1 Easement for Encroachments. The Dwelling Units, all utility lines,
and all other improvements as originally constructed by or on behalf of Declarant or_ its assigns
shall have an easement to encroach upon any setback, Lot as a result of the location of the
building, utility lines and other improvements across boundary lines between and along Lots, or
as a result of building or improvement movement or alterations or additions from time to time,
provided that such alterations or additions have complied with the requirements of .this
Declaration.
Section 6.2 Lot's Utility Easements. Easements are granted in favor of each Lot
Owner to and throughout the Common Areas and, if necessary, -the setback areas of any other
Lots, as may be necessary for the installation, maintenance, repair and use of underground water,
gas, sewer, power and other utilities and services including power and communication, now or
hereafter existing, including maintaining, repairing and replacing any pipes, wires, ducts,
conduits, equipment, fixtures, utility, power or communication lines or equipment, or other
components. The foregoing notwithstanding, no Lot Owner (other than Declarant) may exercise
the easement rights reserved in this Section 6.2 without the prior written approval of the Board as
described in Section 6.6 below and the Declarant, so long as it owns a Lot in the Subdivision or a
residential unit in the Island Forest Subdivision.
Section 63 General Easements. An easement is hereby reserved and/or granted in
favor of the Declarant and/or the Association in, on, over and through the Lots and/or Dwelling
Units for the purposes of maintaining, cleaning, repairing, improving, regulating, operating,
policing, replacing and otherwise dealing with Lots and/or Dwelling Units, including all
improvements thereon as required or permitted by the Constituent Documents or applicable law.
An easement is hereby reserved in favor of Declarant over the Common Areas for the purpose of
advertising or promoting sales of Lots or Dwelling Units in the Subdivision or Units in Island
Forest Subdivision.
12

Section '6.4 Reservation of Access Easement by Declarant. Declarant reserves an
easement for itself, its grantees, successor and assigns, to enter upon the Subdivision for access,
.including ingress and egress for both vehicles and pedestrians, to and from any public street,
road, land, walkway or right-of-way. The easement shall be over the streets, sidewalks, bridges
and other access ways of the Subdivision: Declarant further reserves the right to connect, at
Declarant's expense, to any street, roadway, walkway or other means of access that are located
on the Common Areas of the Subdivision. This reservation of access easements and the right of
connection should be construed liberally in favor of the Declarant, in order to facilitate the
development of all or any portion of Island Forest Subdivision
Section 6.5 Reservation of Construction Easement by Declarant. The Declarant
reserves the non-exclusive right and easement to temporarily go upon the Subdivision in order to
complete the development of the Subdivision and the construction of the improvements to be
located therein. The easement should be construed broadly in favor of the Declarant, including
giving Declarant the right to store temporarily construction materials, equipment or dirt. After
the construction is finished, Declarant -must, at Declarant's cost, repair any damage done to the
Subdivision including to any landscaping. As soon as reasonably possible after Declaration has
completed construction on the neighboring land, Declarant must remove all debris, equipment,
materials and dirt from the Subdivision.
Section 6.6 Roadway Easement.' Pursuant to the Roadway Declaration, Declarant
has reserved for the benefit grants to all Lot Owners of Island Forest Subdivision, the non-
exclusive right of ingress and egress on, over and across all public and private roadways (the
"Roadways") located on or to be located on a portion of the Subdivision which private roadways
extend between one or more publicly dedicated streets. The Declarant hereby reserves the right
(but not the obligation), in its sole discretion, to annex additional Roadways into the Subdivision.
Notwithstanding the foregoing to the contrary, no part of the Roadway shall be dedicated or
transferred to a unit of local government without acceptance of the unit of local government
involved.
Section 6.7 Declarant's Easements: General. The easements and grants reserved
for and granted to the Declarant also benefit and bind any heirs, successors and assigns of
Declarant and their respective guests, invitees or lessees, including, without limitation, assignees
of Declarant who do not own property within Island Forest Subdivision.
Section 6.8 Easements to Run with Land. All easements and rights described in
this Article VI are easements appurtenant, running with the land, perpetually in full force and
effect, and at all times shall inure to the benefit of and be binding on the Declarant, its successors
and assigns, and any Owner, purchaser, mortgagee, and other person or entity now or hereafter
having an interest in the Subdivision; -or any part or portion of it.
Section 6.9 Reference to Easements and Deeds. Reference in the respective deeds
of conveyance or any mortgage or trust deed or other evidence of obligation, to the easements
and rights described in this Declaration, shall be sufficient to create and reserve such easements
and rights to the respective grantees, mortgagees and trustees in said instruments as fully and
completely as those such easements and rights %vere recited fully and set forth in their entirety in
such instruments.
13

ARTICLE VII
INSURANCE
Section 7.1 General Insurance. The Association shall carry and maintain such
insurance as is necessary and prudent.
7.1.1 The Association shall purchase a master policy for the
benefit of the Association, the Lot Owners and their mortgagees as their
interest may appear, subject to the provisions of this Declaration and the
Bylaws. The "master policy" may be made up of several different policies
purchased from different agencies and issued by different companies.
7.1.2 Such master policy of insurance shall contain provisions
requiring the issuance of certificates of coverage and the issuance of written
notice to the Association and to any mortgagee or mortgagees of any Lot
Owner not less than thirty (30) days prior to any expiration, substantial
modification or cancellation of such coverage.
7.1.3 Such insurance by the Association shall not prevent an
Owner of a Lot to obtain insurance on its own property, but no Lot owner
may at any time purchase individual policies of insurance covering any
item which the Association is required to insure. If any Lot Owner does
purchase such a policy, he or she shall be liable to the Association for any
damages, expenses or losses which it suffers or incurs as a result thereof, .
and the Association shall have the same lien rights provided with respect to
any such damages, expenses or losses not paid to it by such Owner.
7.1.4 The Board of Directors shall review the insurance coverage
required under this Section 7.1 at least annually, and if any of such
insurance coverage becomes impossible or impractical to obtain, the
Association shall obtain coverage that most closely approximates the
required coverage with the deductible provisions as determined by the
Board of Directors.
7.1.5 If the required insurance coverage under this Section 7.1
ceases to exist for any reason whatsoever, any mortgagee of any portion of
the Subdivision may remedy that lack of insurance by purchasing policies
to supply that insurance coverage. The funds so advanced shall be deemed
to have been loaned to the Association; shall bear interest at a per annum
rate two percent (2%) higher than the basic interest rate in any note secured
by the mortgagee's mortgage against a portion of the Subdivision; and shall
be due and payable to the mortgagee by the Association immediately. The
repayment of this obligation shall be secured by a Special Assessment
against all Lot Owners under Article V of this Declaration and shall not
require a vote of the Members of the Association, anything to the contrary
in this Declaration notwithstanding.
14

7.1.6 The Association may also maintain liability insurance in
reasonable amounts, covering all occurrences commonly insured against for
death, bodily injury, and property damage. The Association shall try to
have its liability insurance contain cross -liability endorsements or
appropriate provisions to cover liability of the Lot Owners, individually.
Section 7.2 Fidelity Insurance. The Association must have fidelity coverage
against dishonest acts on the part of Officers and employees, Members of the Association,
members of the Board, trustees, employees or volunteers responsible for the handling of funds
collected and held for the benefit of the Lot Owners. The fidelity bond or insurance must name
the Association as the named insured and shall be written in an amount sufficient to provide'
protection which is in no event less than the insured's total Regular Assessment, plus all
accumulated reserves and all other funds held by the Association either in its own name or for
the benefit of the Lot Owners.
Section 7.3 Directors' and Officers' Errors and Omissions Insurance. The
Association shall purchase insurance to protect itself and to indemnify any Director or Officer,
past or present against expenses actually and reasonably incurred by him./her in connection with
the defense of any action, suit or proceeding, civil or criminal, in which he is made a party by
reason of being or having been such Director or Officer, except in relation to matters as to which
he shall be adjudged in such action, suit or -.proceeding to be liable for negligence or misconduct
in the performance of duty to the Association; or to obtain such fuller protection and
indemnification for Directors and Officers as the law of North Carolina permits. The policy or
policies shall be in an amount to be reasonably determined by the Association.
Section 7.4 Premiums. All premiums upon insurance purchased by the
Association shall be Common Expenses. Notwithstanding the foregoing, the Lot Owners may be
responsible for certain deductibles to the insurance policies purchased by the Association as .
outlined in Section 7.1 and Section 7.7 herein.
Section 7.5 Proceeds. Proceeds of all insurance policies owned by the Association
shall be received by the Association for the use of the Lot Owners and their mortgagees as their
interest may appear; provided, however, the proceeds of any insurance received by the
Association because of property damage shall be applied to repair and reconstruction of the
damaged property, except as may otherwise be permitted by this Declaration.
Section 7.6 Responsibility of Lot Owner. The Association shall not be responsible
for procurement or maintenance of any insurance covering any Lot or Dwelling Unit, or the
contents of and Lot or Dwelling Unit nor the liability of any Lot Owner for injuries. Each Lot
Owner shall, at his or her own expense, obtain public liability insurance for personal injuries or
damage arising out of the use and occupancy of or occurring within his Lot or Dwelling Unit. In
addition, each Lot Owner shall maintain fire and extended coverage insurance on his Dwelling
Unit, and the contents of his Dwelling Unit. The Association may request the Lot Owner to
provide a copy of the policy(s) to the Association evidencing this insurance coverage at any time.
Section 7,7 Release, All policies purchased under this Article VII by either the
Association or the individual Lot Owners shall provide for the release by the issuer, thereof, of
15

any and all rights of subrogation or assignment and all causes and rights of recovery against any
Lot Owners, member of their family, their employees, their tenants, servants, agents and guests,
the Association, any employee of the Association, the Board, or any occupant of a Dwelling Unit
in the Subdivision, for recovery against any one of them for any loss occurring to the insured
property resulting from any of the perils insured against under the insurance policy.
Section 7.8 Approximate Coverage. If any of the required insurance coverage.
under this Article VII becomes, or is impossible to obtain or can be obtained only at an
unreasonable cost, the Association shall obtain coverage which most closely approximates the
required coverage, if such substitute insurance is available.
Section 7.9 . Additional Policy Requirements. All such insurance coverage
obtained by the Association shall be written in the name of the Association, for the use and
benefit of the Association, the Lot Owners and their mortgagees, as further identified below.
Such insurance shall be governed by the provisions hereinafter set forth:
7.9.1 Exclusive authority to adjust losses under policies in force
on the Subdivision obtained by the Association shall be vested in the
Association provided, however, that no mortgagee having an interest in
such- losses may be prohibited from participating in the settlement
negotiations,. if any, related thereto.
7.9.2 In no event shall the insurance coverage obtained - by the
Association hereunder be brought into contribution with insurance
purchased by individual Owners, occupants, or their mortgagees, and the
insurance carried by the Association shall be primary.
7.9.3 All casualty insurance policies shall have an agreed amount
endorsement with an annual review by one or more qualified persons.
79.4 The Association shall be required to make every reasonable
effort to secure insurance policies that will provide for the following:
7.9.4.1 a waiver of subrogation as discussed in Section 7.8;
7.9.4.2 that no policy may be canceled, invalidated; or suspended on
account of the acts of any one or more individual Owners;
7.9.4.3 that no policy may be canceled, invalidated or suspended on
account of the conduct of any Director, 'officer or employee of the Association or
its duly authorized manager without prior demand in writing delivered to the
Association to cure the defect and the allowance of a reasonable time thereafter
within which the defect may be cured by the Association, its manager, any Owner
or mortgagee; and
7.9.4.4 that any "other insurance" clause in any policy exclude
individual O,vner's policies from consideration.
m

f
ARTICLE VIII
ASSOCIATION
Section 8.1 Association. The administration of the Subdivision shall be vested in
the Association. The Owner of any Lot, upon acquiring title, shall automatically become a
Member of the Association and shall remain a Member until such time as his ownership of such
Lot ceases for any reason, at which time his membership in the Association shall automatically
cease. The Association, shall have full power and responsibility to administer, operate, sustain,
maintain, and govern the Subdivision including but not limited to, the powers and
responsibilities -to make prudent investments of funds held by it; to make reasonable Rules and
Regulations; to borrow money; to make Assessments; to bring lawsuits and defend lawsuits; to
enter into contracts; to enforce all of the provisions of this Declaration, the Bylaws and any other
documents or instruments relating to the establishment, existence, operation, alternation of the
Subdivision.
Section 8.2 Board of Directors: Unless otherwise specifically stated in this
Declaration, the Association shall act exclusively through its Board of Directors (the "Board").
The Association in accordance with the Bylaws shall choose the Board. The Board shall be
authorized to delegate the administration of its duties and powers by written contract to a
managing agent or administrator employed for that purpose by the Board.
Section 8.3 Limitations on Association's Duties.
8.3.1 The Association did not construct the improvements,
including the Dwelling Units. The Association does not warrant in any way
or for any purpose, the improvements in the Subdivision. Construction
defects are not the responsibility of the Association.
8.3.2 The Association shall have a reasonable time in which to
make any repair or do any other work, which it is required to do under the
Constituent Documents. The Association must first have actual knowledge
of a problem. Any determination of the reasonableness of the Association's
response, must allow for the facts that the Association is volunteer and that
the -funds available to the Association are limited.
8.3.3 In case of ambiguity or omission, the Board may interpret
the Declaration and the other Constituent Documents.' and the Board's
interpretation shall be final if made without malice or fraud.
Notwithstanding the foregoing, the Declarant may overrule any
interpretation affecting it, for so long as Declarant owns any portion of the
Property or any portion of the Island Forest Subdivision; and such
interpretation cannot be enforce against the Declarant, its successors or
assigns.
WA

ARTICLE IX
HARMONY, ENVIRONMENTAL CONTROLS
Section 9.1 Architectural and Landscape Control Committee. Except for original
construction performed by or on behalf of Declarant or as otherwise in'these covenants provided,
no landscaping, building, fence, electric pet fence, sidewalk, drive, mailbox, or other structure, or
improvement or anything attached thereto visible from the outside of the structure or
improvement (including, without limitation, storm doors, windows, drapes or window coverings)
shall be erected, placed, altered, or maintained within the Subdivision nor shall any exterior.
addition to or change (including any change in color) or alteration therein be made until the
proposed building plans, specifications, exterior color and finish, plot plans (showing the
proposed location of such building or structure, drives and parking areas), general contractor and
all subcontractors, and construction schedule shall have been submitted to and approved in
writing by the Board of Directors of the Association, or by any architectural control committee
appointed by said Board of Directors. Refusal of approval of plans, location or specification by
said Board of Directors or architectural control committee may be based upon any reasonable
ground, including, without limitation, lack of harmony of external design, color, location or
relation to surrounding structures and topography and purely aesthetic considerations which, in
the discretion of said Board of Directors or architectural control committee shall deem sufficient.
After approval by the Board of Directors or architectural control committee is given, no
alterations may be made in such plans except by and with their prior written consent. One copy
of all plans, specifications and related data shall be furnished the Board of Directors or
architectural control committee for its records.
Upon request, the Architectural and Landscape Control Committee shall provide any lot
owner with guidelines which the Committee shall apply uniformly to each plan review. These
guidelines May include, without limitation, minimum size requirements, construction material
standards, exterior color combinations, and parking and garage requirements.
No tree shall be removed without written approval of the Architectural and Landscape
Control Committee. Any Owner violating this provision may be fined $1,000 per tree removed.
Any fine levied shall become a lien on Owner's Lot.
ARTICLE X
USE RESTRICTIONS
Section 10,1 Use and Occupancy. The Association shall make Rules and
Regulations to govern the use and occupancy of the Subdivision. In addition, the following
covenants, conditions, and restrictions, as to use and occupancy shall run with the land and shall
be binding upon each Lot Owner, his heirs, tenants, licensees and assigns.
Section 10.2 - - Purpose of Subdivision. Except as otherwise provided in this
Declaration, no part of .the Subdivision shall be used for other than housing and the common
recreational purposes for which the property was designed, and each Lot shall be used only for
residential -purposes, unless the. Board of Directors authorizes some other use. Except for the
construction, sales and management activities (including, without limitation, the right of
18

Declarant to maintain one or more model Dwelling Units, or sales offices) of the Declarant, no
business, trade, industry, occupation or profession of any kind, whether for profit or not for
profit, may be conducted, maintained, or permitted on any part of the Subdivision property. To
the extent permitted by law, an Owner may use a portion of his or her Dwelling Unit for an
office or studio (other than a music and/or dance studio) provided that the activities conducted
therein shall not interfere with the quiet enjoyment or comfort of any other owner or occupant;
and provided further that such activities do not increase the normal flow of traffic or individuals
in and out of the Subdivision or in and out of said Owner's Lot.
Section 10.3 Single Family Construction. Only one single family home containing
no less than 2300 square feet may be constructed on each Lot. Lots may not be divided without
consent of Declarant.
Section 10.3 Parking. Except for vehicles being used by persons providing services
to the Declarant, the Association, the Lot Owners or otherv�,ise used or authorized to be used at
the Subdivision by the Declarant, no part of the Subdivision may be used for the parking of any
trailer coach, automobile trailer, motorcycle, camp car, recreational vehicle, camper, truck which
exceeds I -ton ton, boat, boat trailer, or any vehicle with letters or other markings over four
inches tall or wide, or any other similar vehicle (collectively, "Special Vehicles"), unless such
Special Vehicles are parked in the garage of the Lot Owner who -owns such Special Vehicle and
the garage door of such Lot Owner is completely closed at all times when a Special Vehicle is
parked therein. Operative vehicles, other than Special Vehicles, used by a resident of a Lot as a
primary source of transportation may be parked in the driveway of such Lot Owner or in any
garage space owned by the Owner of such Lot. Inoperative vehicles may not be parked within
the Subdivision unless these inoperative vehicles are parked in the garage and the garage door is
completely closed. No auto maintenance and/or repairs may be performed on the Subdivision
except if performed inside the garage of a Lot Owner. Vehicles, whether owned by a Lot Owner
or not, parked in violation of any part of this Declaration or in violation of any Rules or
Regulations, shall be towed away and stored at the Owner's risk and expense. By parking in the
Project, the Owner of the vehicle or other vehicle user hereby waives any claim against the
Association resulting directly or indirectly out of the towing, unless the towing can be shown
beyond a reasonable doubt to have been done maliciously by the Association. Note that the
Association is not obliged to try to determine the owner of a vehicle and first give notice, before
towing the vehicle. If a Lot Owner is not sure about the right to park at any particular area or
space, the Lot Owner should request, in writing, a written opinion from the Board. If the Board
gives the approval 'sought by the Lot Owner or if the Board does not answer the written request
by the Board, the Lot Owner may park in the space until further written notice to the contrary
from the Board. Note that the Association's right to tow a vehicle includes the right to
immobilize it. Boats may be parked at the rear of a dwelling if the parked boat cannot be seen
from the street.
Section 10.4 Compliance With Insurance Policies and Waste. Nothing shall be
done or kept in any Dwelling Unit or on a Lot which will increase the rate of insurance of the
buildings, or contents thereof, applicable for residential use, without the prior written consent of
the Association. No Lot Owner shall permit anN-thing to be done or kept in his or her Dwelling
Unit or on a Lot which will result in the cancellation of insurance on the buildings, or contents
thereof, or which would be in violation of any law. All laws shall be obeyed.

Section 10.5 Exterior Surfaces of Buildings. Lot Owners shall not cause or permit
anything to be hung or displayed on the inside or outside of windows (except as provided herein)
or hung on the outside of the Dwelling Unit doors (including but not limited to decorative door
arrangements) or placed on the exterior walls of a building, and no sign (other than those
described in Section 10.11 hereof and directional signs. or signs concerning the use of the
Common Areas), awning, canopy, shutter, radio or television antenna shall be affixed to or
placed upon the exterior walls or roof or any part of the building, or the Common Areas without
the prior written consent of the Association. Unless otherwise approved in writing by the
Association, Lot Owners shall not cause or permit any curtains, shades or other window
coverings to be hung inside or outside any windows, doorways, and/or patio doors which .will
show any color on the outside other than white or beige tones.
Section 10.6 Animals and Pets. . No animals of any kind shall be raised, bred, or
kept on any Lot or in any Dwelling Unit or in the Common Areas, except that two dogs, two cats
or one of each, or two other household pets may be kept. in a Dwelling Unit, subject to the Rules
and Regulations, provided that it is not kept, bred or maintained for any commercial purpose, and
that it is kept subject to the Rules and Regulations of the Association. Dogs, cats or other
household pets must be kept within the confines of the Owner's Property except when being held
on a leash. A Lot Owner shall be responsible for cleaning up 'after his household pet,
Notwithstanding the above, the Association shall have the right to promulgate Rules and
Regulations pertaining to the size, number and type of such household pets and the right to levy
fines and enforcement charges against persons who do not clean up after their pets.
Additionally, the right of an occupant to maintain an animal in a Dwelling Unit shall be subject
to termination if the Board in its full and complete discretion, determines that maintenance of the
animal constitutes a nuisance or creates a detrimental effect on the Subdivision or occupants.
Nuisances. No noxious or offensive activity shall be carried on in any Dwelling Unit or in the
Common Areas or on the Lot of an Owner, nor shall anything be done therein, either willfully or
negligently, which are an annoyance or nuisance to the other Lot Owners or occupants.
Section 10.7 Laundry, Rubbish and Open Fires. No clothes, sheets, blankets,
laundry of any kind or other articles shall be hung out or exposed on any Lot in a manner visible
from any neighboring Lot or street. All trash, garbage or other rubbish shall be deposited only
in covered sanitary containers except brush. No open fires shall be permitted on any part of the
Subdivision other than fires in charcoal grills, other similar cooking devices and exterior
fireplaces located upon Lots, provided the use of such devices does not violate any local
governmental rules or regulations.
Section 10.8 Prohibited Activities. Except as otherwise provided in this
Declaration, no business, trade, industry, occupation or profession of any kind, whether for profit
or not for profit, shall .be conducted, maintained or permitted on any part of the Subdivision. A
Lot Owner is permitted to place and maintain a standard "For Sale" or "For Rent" sign only in
the window of his Dwelling Unit; provided, however it is of a typical size .within the industry or
within an area expressly permitted by the Board of Directors. No other sign that is visible from
the outside of Dwelling Units may be placed on any part of the Subdivision except as expressly
permitted by the Board of Directors. This doesn't apply to signs limited to Owner name and
street number. Declarant and/or the Board shall have the right to immediately remove and
dispose of those items in violation of this Declaration. A Lot Owner must obtain the prior
20

written consent of the Board of Directors in the event a Lot Owner desires to maintain a "For
Sale" or "For Rent" sign which is not of a typical size within the industry, or desires to maintain
other displays or advertising, unless otherwise provided for under the Rules and Regulations.
The right is reserved by the Declarant to use any such unsold or unoccupied Dwelling Units or
other structures in the Subdivision as models and/or offices in connection with the construction,
sale or rental of Dwelling Units.
So long as the Declarant owns a Lot no action may be taken nor may any Rule or
Regulation be adopted or amended that would (a) directly or indirectly alter the exterior
appearance of any part of the Subdivision; (b) reduce or discontinue any maintenance standard or
practice in effect as of the date when the Declarant no longer controls the Board; (c) adversely
affect the Declarant's sale or leasing of any Lots; or (d) otherwise adversely affect the Declarant,
any of its rights, or any Lot owned by it without, in each case, first obtaining the Declarant's
written consent.
Section 10.9 Rental of Lots. In order to protect the equity of the Lot Owners and to
carry out the purpose for which the Association was formed by preserving the character of the
Property as a homogeneous predominantly owner -occupied residential community and to avoid
the character of a renter -occupied apartment complex, no more than fifty percent (50%) of the
Dwelling Units in the Subdivision may be leased by the respective Owners at any one time.
Each Owner in the Subdivision must obtain the approval of the Board prior to leasing his
Dwelling .Unit, which approval shall not be unreasonably withheld `if less than fifty percent
(50%) of the Dwelling Units in the Subdivision are then currently being leased, and provided the
following conditions are met: (a) not less than the entire Dwelling Unit is being leased, (b) the
term is not less than one (1) year All leases of any Dwelling Unit shall be in writing. All such
leases shall provide that they are subject to all of the provisions of the Declaration, the Bylaws.
and the Rules and Regulations and that any failure by the lessee to comply with any of such
provisions shall constitute a default under the lease. A copy of each such lease shall be given to
the Declarant and the President of the Association immediately after it is executed.
If any lessor or lessee is in violation of any of the provisions of the foregoing documents,
the Association may bring an action in its own name and/or in the name of the lessor to have the
lessee evicted and/or to recover damages. If the Court finds that the lessee is or has violated any
of the provisions of the Declaration, the Bylaws or the Rules and Regulations, the Court may
find the lessee guilty of forcible detainer notwithstanding the facts that the lessor is not a party to
the action and/or that the lessee is not otherwise in violation of lessee's lease or other rental
agreements with lessor. For purposes of granting the forcible detainer against the lessee, the
Court may consider the lessor a person in whose name a contract (the lease or rental agreement)
was made for the benefit of another (i,e., the Association). The remedy provided by this Section
11.13 is not exclusive and is in addition to any other remedy or remedies that the Association
has. If -permitted by present or future law, Association may recover all of its costs, including
Court costs and reasonable attorney's'fees, and such costs shall be a continuing lien upon the Lot
which shall bind the Lot in the hands of the then Lot Owner and the Lot Owner's successors and
assigns,
Section 10.10 Trash Disposal. Each Lot Owner shall deposit all trash, garbage; or
other rubbish by as directed and instructed by the Board. Lot Owners shall keep trash containers
21

at all times in each Lot Owner's garage (if applicable), or in such other location as designated by
the Board, except on the days which trash, garbage, or other rubbish is collected by the local
waste removal authorities. Any trash containers placed outside by the Lot Owners in the location
designated for collection by the local waste removal authorities shall only remain in such
location for a period not to exceed twenty-four (24) hours: The Board shall have the right to
dispose of any trash, garbage, or other rubbish of a Lo.t Owner in violation of this Article X, and
may assess the Lot Owner for the cost of such removal, .which amount shall be payable on the
date the next installment of the regular assessment is due. Trash containers must be kept out of
sight from street and adjoining property.
Section 10.11 Nondiscrimination. No oN ner (including the Declarant), or any
employee, agent or representative thereof, shall discriminate upon the basis of sex, race, age,
color, creed or national origin in the sale, lease or rental of any Lot nor in the use of the Common
Areas.
ARTICLE X1
ENFORCEMENT
Section 11.1 Enforcement.
11.1.1 The Association or any Lot Owner may enforce these
covenants, conditions and restrictions. Enforcement of these covenants,
conditions and restrictions shall be by any proceeding at law or in equity
against any person or persons violating or attempting to violate ("Violating
Party") any covenant, condition or restriction, either to restrain or enjoin
violation or to recover damages, and against the land to enforce any lien
created by these covenants. In addition to all other amounts due on account
of said violation or attempted violation, the Violating Party shall be liable
to the parties enforcing the covenants and/or restrictions of this Declaration
(the "Enforcing Parties") for all reasonable attorney's fees and court costs
incurred by the Enforcing Parties. Failure or forbearance by the
Association or any Owner to enforce any covenant, condition or restriction
herein contained shall in no event be deemed a waiver of the right to do so
thereafter. In any lawsuit filed to enforce this Declaration by injunction or
restraint, there shall be and there is hereby created and declared to -be a
conclusive presumption that any violation or breach' or any attempted
violation or breach of any of the within covenants, conditions or restrictions
cannot be adequately remedied by action at law or by recovery of damages.
11.1.2 In addition to all other remedies of the Association; the
Association shall have the right to assess a maximum fine of $150.00 per
22

day (or such higher amount as may be allowed by law) per violation against
any Owner who violates any provision of this Declaration or the Articles,
Bylaws -or Rules and Regulations of the Association after such Owner has
been given notice of the violation and an opportunity to be heard with
respect to the violation in accordance with such policies and procedures as
may be adopted from time to time by the Board of Directors or as may be
set forth in the Bylaws.
11.1.3 In addition to the above rights,' the Association may -also
enter upon a Lot or any land upon which a violation exists to remove any
violation, perform maintenance or make repairs thereon which is the
responsibility of a Lot Owner who has failed to remove said violation or to
perform such maintenance or make such repairs (i) after having given such
owner at least ten (10) days prior notice, or (ii) without giving notice in the
event of an emergency.
Any action brought by the Association hereunder may be brought in its own name, in the
name of its Board or in the name of its managing agent. In any case of flagrant or repeated
violation by a Lot Owner, he or she may be required by the Association to give sufficient surety
or sureties for his or her future compliance with the covenants, conditions and restrictions
contained in this Declaration, the Bylaws and the Rules and Regulations.
Section 11.2 Severability. Invalidation of any one of these covenants, conditions or
restrictions by judgment or court order shall in no way affect any other provisions, which shall
remain in full force and effect.
Section 11.3 Restrictions Run With Land. The easements or other permanent rights
or interests are herein created, the covenants and restrictions of this Declaration shall run with
and bind the land, and shall inure to the benefit of and be enforceable by the Association, or the
Owner of any Dwelling Unit subject to this Declaration, their respective legal representatives,
heirs, successors, and assigns.
Section 11.4 Amendment. The Association (the Declarant controlling the
Association until the expiration of the Development Period) may amend this Declaration at any
time, as long as consistent with the design, scheme and purposes of this Declaration, by the
affirmative vote or written agreement of the Owners to whom not less than seventy-five percent
(75%) of all of the votes in the Association are allocated in accordance with Section 4.4 and
Section 4.5 above. Any amendment must be recorded in the New Hanover County Register of
Deeds. Following the end of the Development Period, no such agreement to amend, in whole or
in part, shall be effective unless written notice of the proposed amendment is sent to every
Member at least thirty (30) days in advance of any action taken, and no such amendment shall be.
effective with respect to any permanent easements or other permanent rights or interests relating
to the Common Areas herein created (unless such amendment is consented to in writing by
Declarant and all other beneficiaries of such permanent easements, rights of interests).
Section 11.5 Reservation of Special Declarant Rights. Declarant reserves the right
to maintain sales and management offices, model units; construction trailers, storage or staging
23

areas, and advertising signs upon Lots or the Common Areas and upon Lots owned by it until the
expiration of the Development Period. Declarant shall have the right to assign all or a portion of
any rights or easements reserved herein by a written assignment thereof, recorded in the New
Hanover Public Registry. Without limiting the foregoing, and notwithstanding anything herein to
the contrary, during the Development Period, Declarant shall have the right to annex additional
Lots or Common Areas into the Subdivision by filing"a supplement to this Declaration in the
New Hanover County Registry together with an amendment to the Plat (if applicable). Such
additional Lots or Common Areas need not be contiguous to the Property.
Section 11.6 Management and Service Contracts. . Any agreement for the
professional management of the Subdivision of the Common Areas may not exceed three (3)
years and shall provide for termination by either party without cause and without payment of a
termination fee upon reasonable notice.
Section 11.7 Binding Determination. In the event of any dispute or disagreement
with or between any Owner(s) relating to, or of any other disputes, disagreements or questions
regarding, the interpretation or application of the provisions of this Declaration or the Articles or
Bylaws of the Association, the determination thereof (i) by Declarant for so long as Declarant
retains control of the Association; and (ii) thereafter by the Board of Directors of the Association
shall be final and binding on each and all such Owners; providing that any determination which
directly or indirectly affects Declarant shall require Deelarant's prior consent to become binding
upon Declarant.
Section 11.8 Arbitration. All disputes between Owner or Owners and the
Declarant or Board of Directors shall be resolved by arbitration pursuant to the Revised Uniform
Arbitration Act set forth in Sections 1-569.1 et seq North Carolina General Statutes. This
provision shall not apply to the collection of Assessments pursuant to Article V of this
Declaration.
Section 11.8 Captions and Titles. All captions, titles or headings in this Declaration
are for the purpose of reference and convenience only and are not deemed to limit, modify or
otherwise affect any of the provisions hereof, or to be used in determining the intent or context
thereof.
Section 11.9 Notices. Except as otherwise provided in this Declaration, any notice
to any Owner under this Declaration shall be in writing, shall be effective on the earlier of (i) the
date -when received by such Owner, or (h) the date which is three days after mailing (postage
prepaid) to the last address of such Owner set forth in the books of the Association. The address
of an Owner shall be at his Lot (or any of them if more than one) unless otherwise specified in
writing to the Association. The Articles and Bylaws shall specify the permissible manner of
giving notice for voting and all other Association inatters for which the manner of giving notice
is not prescribed in this Declaration.
Section 11.10 Governing Law. This Declaration shall be deemed to be made under,
and shall be construed in accordance -,vith and shall be governed by, the laws of the State of
North Carolina, and suit to enforce any provision hereof or to obtain any remedy with respect
hereto shall be brought in state court in New Hanover County, and for this purpose each Owner
by becoming such hereby expressly and irrevocably consents to the jurisdiction of said court.
24

ARTICLE XII
MORTGAGEE'S RIGHTS
Section 12.1 Notice of Rights of Mortgagee of a Lot. As used herein, the term
"Mortgagee" shall mean the holder of a first lien mortgage or deed of trust on a Lot .who
provides notice to the Association with its name and address with a request to receive any notices
and other rights provided to "Mortgagees" under this Article XII. A Mortgagee of a Lot shall be
entitled to receive xvritten notification of any default, not cured within sixty (60) days after its
occurrence, by the -Owner of the Lot with respect to any obligation of the Owner under the
Declaration, the Bylaws of the Association or the Articles of Incorporation of the Association.
Any Mortgagee of a Lot can make the request for notification. The notification shall be sent not
later than the 65th day after the occurrence of an uncured Default.
Section 12.2 Rights of First Refusal. Any right of first refusal now or hereafter
contained in this Declaration or any amendment or modification hereto or otherwise arising in
favor of the Association or certain' Owners shall not apply to or preclude or impair in any way
the right of the first Mortgagee to (i) foreclose or take title to the Lot pursuant to the remedies
provided in its mortgage; (ii) accept a deed or assignment in lieu of foreclosure in the event of a
default under the Mortgage; or (iii) sell or lease a Lot and Dwelling Unit acquired by the
Mortgagee.
Section 12.3 Rights of Mortgagee. Unless at least seventy five percent (75%) of the
Mortgagees (based upon one vote for each first mortgage or deed of trust owned), and a vote of
seventy-five percent (75%) of the votes allocated to the Members entitled to vote hereunder, the
Association shall not:
12.3.1 by an act or omission seek to abandon, partition, subdivide,
encumber, sell or transfer the Subdivision.
12.3.2 change the method of determining the obligations,
assessments, dues or other charges which may be levied against a Lot;
12.3.3 by act or omission change, waive or abandon any scheme of
regulation or enforcement thereof pertaining to the architectural design or
exterior appearance of the Dwelling Units, the exterior maintenance of the
Dwelling Units, the maintenance of common fences or driveways or the
upkeep of lawns and plantings in the Subdivision;
Section 12.4 Right to Examine Books and Records. Mortgagees, their successors or
assigns, shall have the right to examine the books and records of the Association.
Section 12.5 Taxes and Insurance. Mortgagees may, jointly or singly, pay taxes or .
other charges ,vhich are in default and which may or have become a charge against any Lot and
may pay overdue premiums on hazard insurance. policies, or secure new hazard insurance
coverage on the lapse of a policy, for such Lot, and first mortgagees making such payments shall
be owed immediate reimbursement therefor from the Lot Owner.
25

Section 12.6 Insurance Proceeds and Condemnation Awards. No provision of this
Declaration or any other document or instrument affecting the title to the Property, Common
Areas, any Lot or the organization or operation of the Association shall give an Owner or any
other party priority over any rights of first mortgagees of Lots within the Subdivision pursuant to
their mortgages in the case of a distribution to Owners of insurance proceeds or condemnation
awards for losses to or taking of Common Areas.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
26

IN WITNESS WHEREOF, Declarant has caused this instrument to be executed as of
the day and year first above written.
Coastal Dream Homes, LLC
a North Carolina limited liability company
BY:
fi
:Member I� ,
STATE OF NORTH CAROLINA
COUNTY OF 7NEW ANOVER
This day of October, 2004, personally came before me W. Dan Bell, Notary
Public of New Hanover County, State of North Carolina, Richard.C. Rogge who, being by me
duly swom, says that he is Member/Manager of Coastal Dream Homes, LLC, a North Carolina
limited liability company, and that said writing was signed by him in behalf of said company by
its authority duly given. And the Member/Manager acknovvledged the said writing to be the act
and -deed of said corporation.
Witness my hand and official stamp or seal this
My commission expires:
/r9 -z ?- d
[NOTARIAL SEAL]
27

EXHIBIT A
Legal Description
BEING located in New Hanover County, North Carolina, and being more particularly depicted
as eighteen(18) subdivided residential building Lots, on a plat entitled "Island Forest" and
recorded in Book 46, Page 380, New Hanover County Registry.
W]

AMENDMENT TO DECLARATION OF COVENANTS, CONDITIONS AND
RESTRICTIONS
The Declaration of Covenants, Conditions and Restrictions of the Island Forest
Homeowners Association dated October 27, 2004, and recorded October 28, 2004, in
Book 4545 at Page 734 is hereby amended to include the following provisions,
In accordance with Title 15 NCAC 2H.1000, the Coastal Stormwater
Management Regulations, deed restrictions and protective covenants are required -for
certain developments where lots will be subdivided and sold. Deed restrictions and
protective covenants are necessary to ensure that the development maintains a "built -
upon" surface area consistent with the applicable regulation limiting built -upon area. The
following deed restrictions and covenants must he recorded prior to issuing the
Stormwater Management Permit:
1. For All Projects:
1. The following covenants are intended to ensure ongoing. compliance with State
Stormwater..Management Permit Number SW804114 , as issued by the Division
of Water Quality under NC AC 2H.1000.
2. The State of North Carolina is made a beneficiary of these covenants to the extent
necessary to maintain compliance with the stormwater management permit.
3. ' These covenants are to run with the land and be binding on all persons and parties
claiming under them.
4. The covenants pertaining to stormwater may not be altered or rescinded without
the express written consent of the State of North Carolina, Division of Water
Quality.
5. Alteration of the drainage as shown on the approved plan may not take place
without the concurrence of the Division of Water Quality.
H. For High Density Residential Subdivisions: (In addition to 1.1 —1.5 and
all other that apply)

The maximum allowable built -upon area per lot is 300fl 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.
If the BUA per lot varies, please record as follows and provide a complete lot
listing with proposed BUA: .
The maximum allowable built -upon area per lot is a follows:
Lot # BUA Lot # BUA Lot # BUA
These allotted amounts include 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.
2. All runoff from the built -upon areas 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 to collect lot runoff and directing them into the stormwater system or into
the street. Lots that will naturally drain into the system are not required to
provide these additional measures.
All other provisions of the recorded Declaration remain in full force and effect.
Dated this 23r0�day of November, 2004
DECLARANT
C staDream o , LC
e CRogge
ITS: Member/Manager

STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
I, the undersigned Notary Public of the County and State aforesaid, certify that
Richard C. Rogge personally appeared before me this day and acknowledged that he is
�Member/Manager of Coastal Dream Homes, LLC, a North Carolina limited liability
company, and that by authority duly given and as the act of the corporation, execu;ed the
foregoing instrument. Witness my hand and Notarial stamp or seal this 23ri day of
NC`_ ejgf Le r, 2004.
Notary Public
My commission expires: q < ( 31 "�0C-) C
HOMEOWNERS ASSOCIATION
Isl d Forest Horn, �rs Association, Inc.
BY: Richafd C. Rogge
ITS: President of the Board of Directors
STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
I, the undersigned Notary Public of the County and State aforesaid, certify that
Richard C. Rogge personally appeared before me this day and acknowledged that he is
President of the Board of Directors of Island Forest Homeowners Association, Inc., a
North Carolina non-profit corporation, and that by authority duly given and as the act of
the corporation, xecuted the foregoing instrument. Witness my hand and Notarial stamp
or seal this 3 r"day of NoVO r L- Q-(- � 2004.
CIA &bA�Lxg L'LJ44_�L
Notary Public
My commission expires: 9 !E3 OO ,
Ay
. •Lr
'1JSL
'�0''%,y°jer Reove•`\` .
rlirrrttt

State Stormwater Management Systems
Permit No. SW8 041114
STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
STATE STORMWATER MANAGEMENT PERMIT
HIGH DENSITY DEVELOPMENT
In accordance with the provisions of Article 21 of Chapter 143, General Statutes of
North Carolina as amended, and other applicable Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
Richard Rogge & Coastal Dream Homes, LLC
Island Forest Subdivision
Bennet Lane, Carolina Beach, New Hanover County
FOR THE
construction, operation and maintenance of a 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 Water Quality and
considered a part of this permit.
This permit shall be effective from the date of issuance until November 24, 2014 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 on page 3 of this permit. The subdivision is
permitted for 18 lots, each allowed 3,000 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. 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 9

State Stormwater Management Systems
Permit No. SW8 041114
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:
5.68
Onsite, ft2:
247,421
Offsite, ft2:
0-bypassed
b. Total Impervious Surfaces, ft2:
95,690
18 Lots at 3,000 ft2:
54,000
Roads/Parking, ft2:
41,090
Other, ft2:
600
Offsite, ft2:
0
C. Pond Depth, feet:
d. TSS removal efficiency:
e. Design Storm:
f. Permanent Pool Elevation, FMSL
g. Permitted Surface Area @PP, ft2:
h. Permitted Storage Volume, ft3:
i. Storage Elevation, FMSL:
j. Controlling Orifice:
k. Permanent Pool Volume, ft3:
1. Forebay Volume, W.
m. Maximum Fountain Horsepower
n. Receiving Stream / River Basin:
o. Stream Index Number:
p. Classification of Water Body:
II. SCHEDULE OF COMPLIANCE
6.50
90%
1
13.00
5,487
19,679
15.7
1.5" O pipe
12,547
2,270
1/6
Carolina Beach Yacht Basin/ Cape Fear
CPF24 18-87-31.2
"S B"
1. No homeowner/lot owner/developer shall fill in, alter, or pipe any drainage feature
(such as swales) shown on the approved plans as part of the stormwater
management system without submitting a revision to the permit and receiving
approval from the Division.
2. The permittee is responsible for verifying that the proposed built -upon area for
the entire lot, including driveways and sidewalks, does not exceed the allowable
built -upon area. Once the lot transfer is complete, the built -upon area may not be
revised without approval from the Division of Water Quality, and responsibility for
meeting the built -upon area limit is transferred to the individual property owner.
Page 3of9

State Stormwater Management Systems
Permit No. SW8 041114
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 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.
5. The Director may determine that other revisions to the project should require a
modification to the permit.
6. 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.
7. 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.
8. During construction, erosion shall be kept to a minimum and any eroded areas of
the system will be repaired immediately.
9. 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.
10. 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.
11. Permanent seeding requirements for the stormwater control must follow the
guidelines established in the North Carolina Erosion and Sediment Control
Planning and Design Manual.
Page 4 of 9

State Stormwater Management Systems
Permit No. SW8 041114
12. 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 041114, as issued
by the Division of Water Quality under NCAC 2H.1000.
b. The State of North Carolina is made a beneficiary of these covenants to
the extent necessary to maintain compliance with the Stormwater
Management Permit.
C. These covenants are to run with the land and be binding on all persons
and parties claiming under them.
d. The covenants pertaining to stormwater may not be altered or rescinded
without the express written consent of the State of North Carolina, Division
of Water Quality.
e. Alteration of the drainage as shown on the approved plans may not take
place without the concurrence of the Division of Water Quality.
f. The maximum built -upon area per lot is 3,000 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.
13. 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.
14. 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 116 horsepower.
Page 5 of 9

State Stormwater Management Systems
Permit No. SW8 041114
15. Prior to transfer of the permit, the stormwater facilities will be inspected by DWQ
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.
16. The permittee shall at all times provide the operation and maintenance
necessary to assure that all components of the permitted stormwater system
function at optimum efficiency. The approved Operation and Maintenance Plan
must be followed in its entirety and maintenance must occur at the scheduled
intervals including, but not limited to:
a. Semiannual scheduled inspections (every 6 months).
b. Sediment removal.
c. Mowing and revegetation of side slopes.
d. Immediate repair of eroded areas.
e. Maintenance of side slopes in accordance with approved plans and
specifications.
f. Debris removal and unclogging of structures, orifice, catch basins and
piping.
g. Access to all components of the system must be available at all times.
17. Records of maintenance activities must be kept and made available upon
request to authorized personnel of DWQ. The records will indicate the date,
activity, name of person performing the work and what actions were taken.
18. This permit shall become voidable unless the facilities are constructed in
accordance with the conditions of this permit, the approved plans and
specifications, and other supporting data.
19. 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.
III. GENERAL CONDITIONS
This permit is not transferable to any person or entity except after notice to and
approval by the Director. In the event there is either a desire for the facilities to
change ownership, or there is a name change of the Permittee, a
"Name/Ownership Change Form" must be submitted to the Division of Water
Quality accompanied by appropriate documentation from the parties involved.
This may include, but is not limited to, a deed of trust, recorded deed restrictions,
Designer's Certification and a signed Operation and Maintenance plan. The
project must be in good standing with DWQ. The approval of this request will be
considered on its merits and may or may not be approved.
2. 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.
3. Failure to abide by the conditions and limitations contained in this permit may
subject the Permittee to enforcement action by the Division of Water Quality, in
accordance with North Carolina General Statute 143-215.6A to 143-215.6C.
4. 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.
Page 6 of 9

State Stormwater Management Systems
Permit No. SW8 041114
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 may be modified, revoked and reissued or terminated for cause. The
filing of a request for a permit modification, revocation and reissuance or
termination does not stay any permit condition.
7. Permittee grants permission to staff of the DWQ to access the property for the
purposes of inspecting the stormwater facilities during normal business hours.
8. The permittee shall notify the Division of any name, ownership or mailing address
changes within 30 days.
9. 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.
Permit issued this the 24th day of November 2004.
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
Alan W. Klimek, P.E., Director
1-151 Division of Water Quality
By Authority of the Environmental Management Commission
Permit Number SW8 041114
Page 7 of 9

i
Oil-
110
J--
ot
-fw;r�5. s
r
95-60
f '
m keq
SURD. 496�� 4��;.;��°°
1
-�� = Wq�a_ �f Z
i" q A50
: u � , ±
=I 4 p
._ .
(.'
lq
/. J •.rye /I f
�'�S��sU1:�+L r IF�D�y��3'Jyi@�fi
'r�� _ '�.,a�✓�,wT y_
� ...J �f'if.�� `/JL � �. �, ! ,
,
_ RECEIVE
= s q �% I?Z, - o 64 J, _ .LF5 NOV 2 3 2004
DWQ
My - PROJ #
--�—"--�
h, • L. p -.E b 6 t
13'
1,
v 1
e*s�Pt''�{��#�Li

AL

TO: LINDA LEWIS
NCDWQ
FROM: ALAN JARRETT
MALPASS ENGINEERING. PC
RE: STORMWATER APPLICATION NO. SWS 041114
ISLAND FOREST -REQUEST FOR ADDITIONAL INFORMATION
DATE: 1 1-22-04
We made the following revisions in response to your request For additional infonuation:
1. The owner will be providing a copy of the proposed deed restrictions. * liu(t.. oa
?. We added the temporary pool elevation to the table on the detail sheet.
3. The cul-de-sac radii have been labeled on the plans.
4. We provided our volume calculations for the main pond.
5. We provided our volume calculations for the forebay.
6. We changed the design volume to size the orifice. With this change, we needed
to chan,,e the orifice frorii 1.5" diameter to 1 diameter in order for the pond to
draw down in 2 to 5 days.
7. We labeled the outlet structure on the plans.
S. We dimensioned the lines of the permanent pool contour on the pond detail.
9. We highlighted the drainage area for the pond. Notice the interior lots arc not
drainin�� to the pond.
�.�VED
NOV 2 3 2004

FROM : Coastal Dream Homes PHONE NO. : 910 4580099 NOV. 23 2004 12:34PM P2
RECEIVED
NOV 2 3 2004
DWQ
PROD # `` C54• (! l ¢
AMENDMENT TO DECLARATION OF COVENANTS, CONDITIONS AND
RESTRICTIONS
The Declaration of Covenants, Conditions and Restrictions of the Island Forest
Homeowners Association dated October 27, 2004, and recorded October 28, 2004, 41
Book 4546 at Page 734 is hereby amended to include the following provisions.
In accordance with Title 15 1\ICAC 2H.1000, the Coastal Stormwater
Management Regulations, deed restrictions and protective covenants are required for
certain developments where lots will be subdivided and sold. Deed restrictions and
protective covenants are necessary to ensure that the development maintains a "built -
upon" surface area consistent with the applicable regulation lirrdting built -upon area_ The
following deed restrictions and covenams must be recorded prior to issuing the
Stormwater Management Permit;
Y. For All Projects.
I. The following covenants are intended to ensure ongoing compliance with State
Stormwater Management Permit Number _STI 104114 .. as issued by the Division
of Water Quality under NCAC 2H.1000.
2. The State of North Carolina is made a beneficiary of these covenants to the extent
necessary to maintain compliance with the stormwater management permit_
3. These covenants are to run with the land and be binding on all persons and parties
claiming under them.
4. The covenants pertaining to stormwater may not be altered or rescinded without
the express written consent of the State of North Carolina, Division of Water
Qu ality-
5. Alteration of the drainage as shown on the approved plan may not take place
without the concurrence of the Division of Water Quality,
M For ];sigh Density Residential Subdivisions: (In addition to I.1— 1.5 and
all other that apply)

PROM : Coastal Dream Homes PHONE NO. : 910 45eOO99 NOV. 23 2004 12:34P'1 P3
The maximum allowable bunt -upon area per lot is 3000 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.
These allotted amounts include 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, opens wood decking, or the water surface of
sing pools.
All runoff from the built -upon areas on the iot must drain into the pennitted
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 to collect lot runoff and directing there into the stormwater system or into
the street. Lots that -will naturally drain into the system are :not required to
provide these additional measures.
All other provisions of the recorded Declaration remain in M force and effect_
Dated this 2;rdday of November, 2004
DECLARANT
C stal Dream Ho , LC
BY: Ric d C. Rose
ITS: Mernber/IvMarager

FT�OM : Coastal Dream Homes
PHONE NO. : 910 45800% NOV. 23 2004 12:35PM P4
STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
I, the undersigned Notary Public of the County and State aforesaid, certify that
Richard C_ Rogge personally appeared before me this day and acknowledged that he is
Member/Manager of Coastal Dream Homes, LLC, a North Carolina limited liability
company, and that by authority duly given and as the act of the corporation, executed the
foregoing izt,strument. Witness may hand and Notarial stamp or seal this �3raday of
NoTep�Ler, 2004.
Notary Public
My commission expires: 1 3 d
HOMEOWNERS ASSOCIATION
IsI d Forest Horn �rs Association, Inc.
'BY-. Richadd C. Rogge
ITS: President of the Board of Directors
STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVTR
1, the undersigned Notary Public of the County and State aforesaid, certify that
Richard C. Rogge personally appeared before me this day and acknowledged that he is
President of the Board of Directors of Island Forest Homeowners Association, Inc_, a
North Carolina non-profit corporation, and that by authority duly given and as the act of
the corporation, pxecuted the foregoing instrument_ Witness my hand and Notarial stamp
or seal this �3 d ay of Nom" e c , 2004.
Notary Public
My conurdssion expires. `
sN M���ttttttirrq��
.��•��<y. Q�zi�i
%%0tARy':
' 11BLIC, •'=t'
t

�0F WAPF9 Michael E. Easley, Governor
�O G William G. Ross, Jr., Secretary
co North Carolina Department of Environment and Natural Resources
O Alan W. Klimek, P.E. Director
Division of Water Quality
November 18, 2004
Mr. Richard Rogge, Member -Manager
Coastal Dream Homes, LLC
PO Box 2020
Carolina Beach, NC 28428
Subject: Request for Additional Information
Stormwater Project No. SW8 041114
Island Forest Subdivision
New Hanover County
Dear Mr. Rogge:
The Wilmington Regional Office received a Stormwater Management Permit Application
for Island Forest Subdivision on November 18, 2004, with a scheduled review date of
November 18, 2004. A preliminary review of that information has determined that the
application is not complete. The following information is needed to continue the
stormwater review:
Please provide a copy of the proposed deed restrictions to include all required
conditions and limitations as found in Sections I and VII of the attached
document.
2. Please add the temporary pool elevation to the table above the Forebay &
Pond Section detail.
3. Please either specify the cul-de-sac radius on the plans or provide a detail.
4. Please provide a table of areas, elevations, and volumes from the bottom of the
pond to the permanent pool elevation to support your conclusion that the
permanent pool volume is 12,547 cubic feet.
5. Please provide a table of areas, elevations and volumes from the bottom of the
forebay to the permanent pool elevation to support your conclusion that the
forebay volume provided is 2,270 cubic feet.
6. Please revise the volume used to calculate the orifice size from the minimum
required by Carolina Beach to the V minimum required by the State. The V
volume may not leave the pond in less than 2 days.
7. Please identify the outlet structure location on the plans.
8. Please dimension every line of the permanent pool contour.
9. Please delineate the drainage area to the pond. I need verification that the two
existing lots are not part of the drainage area.
North Carolina Division of Water Quality 127 Cardinal Drive Extension Phone [phone] Customer SeMrel-877-623.6748
Wilmington Regional office Wilmington, NC 28405-3845 FAX [phone] Internet: h2o.enr.slate.mus
An Equal Opportunity/Affirmative Action Employer — 50% Recycledll0% Post Consumer Paper
NonrthCarofina
Naturally

Mr. Rogge
November 18, 2004
Stormwater Application No. SW8 041114
Please note that this request for additional information is in response to a preliminary
review. The requested information should be received by this Office prior to November
24, 2004, or the application will be returned as incomplete. The return of a project will
necessitate resubmittal of all required items, including the application fee.
If you need additional time to submit the information, please mail or fax your request for
a time extension to the Division at the address and fax number at the bottom of this
letter. The request must indicate the date by which you expect to submit the required
information. The Division is allowed 90 days from the receipt of a completed
application to issue the permit.
The construction of any impervious surfaces, other than a construction entrance under
an approved Sedimentation Erosion Control Plan, is a violation of NCGS 143-215.1 and
is subject to enforcement action pursuant to NCGS 143-215.5A.
Please reference the State assigned project number on all correspondence. Any
original documents that need to be revised have been sent to the engineer or agent. All
original documents must be returned or new originals must be provided. Copies are not
acceptable. If you have any questions concerning this matter please feel free to call me
at [phone].
Sincerely,
Linda Lewis
Environmental
Engineer
RSS/arl:
S:IWQSISTORMWATIADDINF0120041041114.nov04
cc:
Jeff Malpass, P.E., Malpass Engineering
Linda Lewis
Page 2 of 2

Entity Names
Page 1 of 1
ii
aunt+ 4
North Carolina
Elaine F. Marshall DEPART ENT OF TFIE
Secretary SECRETARYOFSTATE
Corporations
*Corporations Home
*Important Notice
*Corporate Forms/Fees
*Corporations FAQ
*Tobacco Manufacturers
*Verify Certification
eOnline Annual Reports
Links
*Secretary Of State Home
*Business License
*Register for E-Procuremer
*Dept. of Revenue
Legislation
*1999 Senate Bills
02001 Bill Summaries
*Annual Reports 1997
"Corporations 1997
*Other Legislation
Search
*By Corporate Name
*For New Corporation
*By Registered Agent
Online Orders
*Start An Order
*New Payment Procedures
PO Box 29622 Raleigh, NC 27626-0622 [phone]
Date: 11 /18/2004
Click here to:
View Document Filings I
Print a pre -populated Annual Report Form I File an Annual Report I
Corporation Names
Name Name Type
NC Coastal Dream Homes, Legal
LLC
Limited Liability Company Information
SOSID:
Status:
Date Formed
Citizenship:
State of Inc.:
Duration:
Registered Agent
0560017
Current -Active
8/9/2000
Domestic
NC
12/31 /2030
Agent Name: Winchip, Teri-jo
Registered Office Address: 100 Teakwood Dr., #903
Carolina Beach NC 28428
Registered Mailing PO Box 2020
Address: Carolina Beach NC 28428
Principal Office Address: 1003 Bennet Lane Unit C
Carolina Beach NC 28428
Principal Mailing Address: No Address
For questions or comments about the North Carolina Secretary of State's web site, please send e-mail to Webmaster,
For questions or comments concerning the Corporations Division, please send e-mail to Corporations Administrator
Click here for help downloading forms.
http://www.secretary.state,nc.us/Corporations/soskb/Corp.asp?5280454
11 /18/2004

r•'
20 222 9016
State of North Carolina
Department of the Secretary of State
LIMITED LIABILITY COMPANY
ARTICLES OF ORGANIZATION
SOSID: 0560017
Date Filed: 8I9l2000 10:00 AM
Elaine F. Marshall
North Carolina Secretary of State
Pursuant to §57C-2-20 of the General Statutes of North Carolina, the undersigned does hereby
submit these Articles of Organization for the purpose of forming a limited liability company.
1. The name of the limited liability company is: COASTAL DREAM HOMES, LLC
2. The latest date on which the limited liability company is to dissolve is: December 31,
2030.
3. The name and address of the organizer executing these articles of organization is as
follows -
Teri -Jo Winchip
P. O. Box 2020
Carolina Beach, NC 28428
New Hanover County
4. The street address and county of the initial registered office of the limited liability
company is:
Number and Street: 100 Teakwood Dr., #19051a3i!rp
City, State, Zip Code: Carolina Beach, North Carolina 28428 - New Hanover County
5. The mailing address of the initial registered office is: P. O. Box 2020, Carolina Beach,
NC 28428 - New Hanover County.
6. The name of the initial registered agent is: Teri -Jo Winchip
7. Check one of the following:
XX (i) Member -managed LLC: all of the members by virtue of their status as members
shall be managers of this limited liability company.
_(ii) Manager -managed LLC: except as provided by N.C.G.S. §57C-3-20(a), the
members of this limited liability company shall not be managers by virtue of their status
as members.
8. Any other provisions which the limited Iiability company elects to include are attached.
None.
JACKSON, MILLS & CARTER, P.A.
WtimNGTON. NoATH CAROUNA

r'
9. These articles will be effective upon filing.
This the 7 day of August, 2000.
/COASTAL
LLC
1 a)g(\ALZV cky<3
Teri -Jo V66chip, Organizer
JACKSON, MILLS & CARTER, P.A.
WILMINGTON, NORTH CAROLINA

SOOOA 0312412004 10:06 AM C200410300712 SOSI D: 0560017
Date Filed: 4/12/2004 4:03:00 PM
LIMITED LIABILITY COMPANY . Elaine F. Marshall
ANNUAL REPORT (42) North Carolina Secretary of State
C200410300712
NAME OF LIMITED LIABtLITY COMPANY: Coastal Dream Homes, LLC
FISCAL YEAR ENDING: 12131 / 0 3 STATE OF INCORPORATION: NC
SECRETARY OF STATE L.L.C. ID NUMBER: 0560017 FEDERAL EMPLOYER ID NUMBER: 52-2278280
NATURE OF BUSINESS: Real Estate Development
REGISTERED AGENT: Teri —Jo Winchip
REGISTERED OFFICE MAILING ADDRESS: PO BOX 2020
Carolina Beach NC 28428
REGISTERED OFFICE STREET ADDRESS: 1003 Bennet Lane Unit C
Carolina Beach NC 28428
New Hanover }
SIGNATURE OF THE NEW REGISTERED AGENT:
SIGNATURE CONSTITUTES CONSENT VO THE APPOINTMENT
PRINCIPAL OFFICE TELEPHONE NUMBER: 910-458-0099
PRINCIPAL OFFICE MAILING ADDRESS: PO BOX 2020
i Carolina Beach NC 28428
PRINCIPAL OFFICE STREET ADDRESS: 1003 Bennet Lane Unit C
Carolina Beach NC 28428
MANAGER SIMEMBERSIORGANIZERS:
Name: Teri-jo Winchip
Title: Member -Manager
Name: Richard Rogge
Title: Member -Manager
Name:
Title:
Address: PO Box 2020
City: Carolina Beach
Address: PO Box 1443
City: Carolina Beach
Address:
City:
State: NC Zip. 28428
State: NC Zip: 28428
State: Zip
CERTIFICATION OF ANNUAL REPORT MUST BE COMPLETED BY ALL LIMITED LIABILITY COMPANIES
F M MUST BE SIGNED Bt A MANAGER/MEMBER DATE
Teri —Jo Winchip Member —Manager
TYPE OR PRINT NAME TYPE OR PRINT TITLE
ANNUAL REPORT FEE: $200.00 MAIL TO: Secretary of State * Corporations Division 0 Post Office Box 29525 • Raleigh, NC 27626-0525

�w
Wo a
RECEIVED
NOV 1, 8 2004
PRaa #�'"
but
}

e .111126I2004 06:29 19103430214
MALPASS ENGINEERING PAGE 61
■ _ ;OVER PAGE � --
TU: CAmL-RQiv w1f1OF, R
FROM: a%',(Ags
F&x' - -35° - Zo0`t
TEL:
PAGE[S] TO FOLL0W
COMMENT: 15t—nF��Z. 0 - - r�r �Rrc

N/26/2e04 06:29 19103430214 MALPASS ENGINEERING PAGE 02
�Y�► u -��11 1�
Narrative
Description:
The site is located approx. 6.5 miles south of the intersection ol'U.S_ 421 & 14WY 132
down Carolina Beach Rd. Turn west onto .Dow Rd for less than 0.1 miles. Turn north
onto Bridge Barrier Rd. i:or approximately a third of a mile. Tarn cast onto Spencer
Farlow Rd. The site is on the right side of the road intmcdiately alter the turn.
Total disturbed acreage is approx. 4.0 acres.
,Soils to be disturbed are mainly Mu. Rtn. and Jay,
The runoff from the site was estimated using the rational Method. 10 year design storrn
acid rai n f ill Jutc fur dic a.mLt.
The purpose of this proicet is to create a residential subdivision.
F.,rosion Control Measures:
The attached plans and speciFications state or show required Sediment and rrnsinn
Control measures to be taken.
Inlet protection will he placed around all inlets. Silt fence will be installed at places
sediment has the ability to leave the site. A gravel construction entrance will be
constructed at the entrance off Bcnnet Lane.
Construction Sequence:
The gravel construction entrance and silt fence will -be installed immediately. The
pond., which will serve as large sediment basin, will be installed_ The site will be @raded
so as to drain to the pond. Utilities will be installed; and paving; and concrete work will
begin. inlet protection will be installed on drop inlets. Upon completion disturbed areas
«xill be seeded within 15 days of no construction.
Storm water treatment and management:
All dl r- iuu ji'l7kvirs imperviuus surfaces prupusQd on Lhis Silo; will be treated in a
wet pond. Standards from Carolina Beach were used to control runoff. The same pond
that is used for treatment is used for managemcnt.