HomeMy WebLinkAboutNotes Applicant 10/24/2024 (8)Declaration for Townhomes on 17th Page 1 of 20
After recording return to:
Harker Lepore LLC
915 NW 19th Ave, Unit H
Portland, OR 97209
DECLARATION OF
COVENANTS, CONDITIONS, AND RESTRICTIONS FOR
TOWNHOMES ON 17TH
Declarant: GS Enterprises Oregon LLC
October 17, 2024
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TABLE OF CONTENTS
Recitals
Article 1 – Definitions
Article 2 – Property Subject to this Declaration
Article 3 – Ownership and Easements
Article 4 – Lots and Homes
Article 5 – Common Area
Article 6 – Membership in the Association
Article 7 – Declarant Control
Article 8 – Declarant’s Special Rights
Article 9 – Funds and Assessments
Article 10 – General Provisions
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DECLARATION OF
COVENANTS, CONDITIONS, AND RESTRICTIONS FOR
TOWNHOMES ON 17TH
This Declaration of Covenants, Conditions, and Restrictions for Townhomes on 17th
(“Declaration”) is made by GS Enterprises Oregon LLC, an Oregon domestic limited liability
company (“Declarant”).
RECITALS
Declarant is the owner of all the real property and improvements thereon located in Lane
County, Oregon, described as follows (the “Property”):
Lots, inclusive, and Tracts as shown on the plat map filed for record on ______, book
_______, pages _______, in the plat records of Lane County, Oregon.
Declarant intends to develop Townhomes on 17th as a Class II planned community. To
establish Townhomes on 17th as a planned community, Declarant desires to impose these
mutually beneficial covenants, conditions, restrictions, easements, assessments, and liens on the
Property, under a comprehensive general plan of improvement and development for the benefit
of all Lots and Common Areas in Townhomes on 17th.
Declarant has deemed it desirable for the efficient preservation of the values and
amenities in Townhomes on 17th to create a nonprofit corporation, to which will be delegated
and assigned the powers and authority to own, maintain, and administer the Common Area and
facilities; to maintain, repair, and replace certain portions of the Lots and exterior of the Homes;
to administer and enforce the covenants, conditions, and restrictions of this Declaration; and to
collect and disburse the assessments and charges hereinafter created.
The Declarant will convey Tracts _________ to the Townhomes on 17th Homeowners’
Association (“Association”). Upon conveyance of the Tracts to the Association, the Association
will assume the maintenance obligation of these Tracts for the benefit of the Owners and assess
the Owners of the Lots equally for the expenses.
NOW THEREFORE, Declarant declares that the Property will be held, transferred, sold,
conveyed, and occupied subject to the Oregon Planned Community Act under ORS 94.550 –
94.783 (the “PCA”), and subject to the following covenants, conditions, restrictions, easements,
charges, and liens, which will run with the land, which will be binding on all parties having or
acquiring any right, title, or interest in the Property or any part thereof, and which will inure to
the benefit of the Association and of each Owner.
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ARTICLE 1
DEFINITIONS
Except as otherwise provided or modified by this Article, the terms contained herein have
the meaning set forth in the Oregon Planned Community Act under ORS Chapter 94, and the
PCA and its definitions are incorporated herein. As used in this Declaration and in the Bylaws of
the Townhomes on 17th Homeowners’ Association, the following terms have the following
meanings:
1.2 Association means Townhomes on 17th Homeowners’ Association, an Oregon nonprofit
corporation, and its successors and assigns.
1.3 Board means the Board of Directors of the Association.
1.4 Bylaws means the Bylaws of Townhomes on 17th Homeowners’ Association, which
shall be recorded pursuant to the Planned Community Act.
1.5 Common Areas means Tracts ______________ as shown on the recorded Plat of the
Property, including any improvements located thereon.
1.6 Declaration means the Covenants, Conditions, and Restrictions for Townhomes on 17th,
and all recorded amendments thereto.
1.7 Declarant means and refers to GS Enterprises Oregon LLC, an Oregon domestic limited
liability company and its successors or assigns, or any successor or assign to all or the
remainder of its interest in the Property.
1.8 Lot means and refers to Lots “A” through “F,” but does not include the Common Area
Tracts.
1.9 Members means and refers to the record Owners of a Lot.
1.10 Occupant means and refers to an occupant of a home on an Owner’s Lot, whether such
person is an Owner, a lessee, or any other person authorized by the Owner.
1.11 Owner means and refers to the record owner(s) in fee simple title to any Lot, or a
purchaser in possession of a Lot under a land sale contract. The foregoing does not
include persons or entities who hold an interest in any Lot merely as security for the
performance of an obligation.
1.12 Plat means and refers to the Plat of Townhomes on 17th recorded in the plat records of
Lane County, Oregon, at book ________, pages ______, on _______________.
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1.13 Property means and refers to the property as shown and described in the Plat.
1.14 Rules and Regulations means and refers to governing documents containing rules,
regulations, resolutions and/or policies adopted by the Board or the Architectural Review
Committee, as may be amended from time to time.
1.15 Tracts means and refers to Tracts _____________ as shown on the Plat.
ARTICLE 2
PROPERTY SUBJECT TO THIS DECLARATION
2.1 Development. The development of Townhomes on 17th consists of the Property, which
will be held, transferred, sold, conveyed, and occupied subject to this Declaration.
2.1.1 Common Area Development. Declarant intends to build the following Common
Area improvements as delineated on the Plat as Tracts _________________:
shared paved driveway, off street parking area, a water runoff garden, and
miscellaneous landscaped areas.
2.1.2 Lot Development. Declarant intends to build six (6) townhouses on six separate
lots with shared common walls. Each townhouse will be approximately 1,100 sq.
ft. of livable space and includes an attached one (1) car garage. The residential
structures will be built using wood stud framing, architectural roofing shingles,
and double pane windows. Each Lot will have individually metered utilities.
ARTICLE 3
OWNERSHIP AND EASEMENTS
3.1 Nonseverability. The interest of each Owner in the use and benefit of the Common Area
is appurtenant to the Lot owned by the Owner. No Lot may be conveyed by the Owner
separately from the interest in the Common Area, and any conveyance of any Lot
automatically transfers the right to use the Common Area without the necessity of
express reference in the instrument of conveyance. Ownership interests in the Common
Area and Lots are subject to the easements granted and reserved in this Declaration. Each
of the easements granted or reserved herein will be deemed established upon the
recording of this Declaration and shall run with the land.
3.2 Ownership of Lots. Title to the Lots shall be conveyed in fee simple to each Owner. If
more than one person or entity owns an undivided interest in the same Lot, such persons
or entities will constitute one Owner. No Lot, as depicted on the Plat, may be subdivided.
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3.3 Ownership of Common Area. Title to any Common Area will be conveyed to the
Association not later than the date of the Turnover Meeting.
3.4 Easements. Individual deeds to Lots may, but are not required to, set forth the easements
specified in this Article.
3.4.1 Easements on Plat. The Common Area and Lots are subject to the easements and
rights-of-way shown on the Plat.
3.4.2 Easements for Common Area. Every Owner has a nonexclusive right and
easement of use and enjoyment in and to the Common Area, which is appurtenant
to and passes with the title to every Lot. The easement is subject to ORS 94.665,
as may be amended from time to time.
3.4.3 Easements Reserved by Declarant. As long as Declarant owns any Lot,
Declarant reserves an easement over, under, and across the Common Area in
order to carry out sales activities necessary or convenient for the sale of Lots.
Declarant, for itself and its successors and assigns, hereby retains a right and
easement of ingress and egress to, from, over, in, upon, under, and across the
Common Area, and the right to store materials thereon and to make such other use
thereof as may be reasonably necessary or incident to the construction of the
improvements on the Property in such a way as not to interfere unreasonably with
the occupancy, use, enjoyment, or access to an Owner’s Lot by the Owner or the
Owner’s family, tenants, employees, guests, or invitees.
3.4.4 Additional Easements. Notwithstanding anything expressed or implied to the
contrary, this Declaration is subject to all easements granted by Declarant for the
installation and maintenance of utilities and drainage facilities
3.4.5 Association’s Easements. The Association, and its authorized agents and
representatives, shall have an easement over the Lots and Common Area as
necessary to perform the duties and obligations of the Association, as set forth in
this Declaration and the Bylaws, including any amendments thereto.
3.4.6 Easement to Governmental Entities. There shall be a nonexclusive easement
over the Common Area to all governmental and quasi-governmental entities,
agencies, utilities, and their agents for the purposes of performing their duties as
utility providers.
3.4.8 Encroachment Easements. If an encroachment results from construction,
reconstruction, repair, shifting, settlement, or movement of any portion of the
Property, the encroachment shall have a perpetual easement on the servient Lot or
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Common Area. Nothing in this section shall relieve an Owner of liability for
willful misconduct nor shall any person be relieved of liability for failure to
adhere to the Plat.
3.4.9 Utility Service Easements Benefiting Lot Owners. The Owner of a Lot
developed within a single building has an easement over, under, and through all
other Lots on which the building is located for underground utility service to the
Owner’s Home. This easement is perpetual, runs with the land, and is binding on
the successors and assigns to the Lots. The electrical lines within the easement
area must be maintained by the Owner benefited by the easement. Any damage
caused to the servient Lot by the maintenance, repair, removal, or replacement of
the electrical service lines must be paid by the Owner causing the damage.
ARTICLE 4
LOTS AND HOMES
4.1 Residential Use. Lots may be used only for residential purposes which are defined in this
Article 4 and by Rules and Regulations adopted by the Board. This Section does not
prohibit home offices or other home businesses which are operated exclusively within the
dwelling and do not cause unreasonable foot or vehicle traffic or other nuisances to other
Owners. No trailer, van, bus, camper, truck, tent, barn, garage, shack or storage structure
shall be used as a residence, either temporarily or permanently, upon a Lot.
4.2 Landscaping. Each Owner must keep the landscaped areas of their Lots in a neat and
orderly manner and consistent with any Rules and Regulations governing landscaping
within the Property.
4.3 Maintenance of Lots and Homes. Each Owner must maintain the Owner’s Lot and all
improvements thereon in a clean and attractive condition, in good repair, and in such
fashion as not to create a fire hazard.
4.4 Improvements. Owners shall not make any improvements to the exterior of their
townhouse or to any common area without first obtaining Board approval.
4.5 Architectural Control. The Association shall maintain architectural control over the
exterior of the townhouses and common areas, which shall be managed by the Board, or,
at the Board’s sole discretion, by an appointed Architectural Committee. The Board may
adopt rules and regulations regarding the landscaping, exterior maintenance and
improvements of the Lots and Common Areas.
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4.6 Party Wall Repair and Maintenance. The cost of repair and maintenance of a Party
Wall shall be shared equally by the Owners if the required repair or maintenance expands
to both sides of the wall. Otherwise, each Owner is responsible for the repair and
maintenance of the portion of the Party Wall facing their side of the property line. Should
a Party Wall be damaged or destroyed due to the intentional or gross negligence of an
Owner, or that Owner’s occupants, guests, or invitees, such Owner shall promptly and
with due diligence repair or rebuild the Party Wall at that Owner’s sole cost and expense,
and shall compensate the adjoining Owner for any repair or damage caused to the
adjoining Owner’s side of the Party Wall due that damage.
4.7 Rental of Homes. No owner may rent or lease any portion of their Lot for a period of
less than 30 days. The Owner and the tenant must enter into a written rental or lease
agreement specifying that (a) the tenant is subject to all provisions of the Declaration,
Bylaws, and Rules and Regulations, and (b) a failure to comply with any provision of the
Declaration, Bylaws, and Rules and Regulations constitutes a default under the rental or
lease agreement. The Owner must give each tenant a copy of the Declaration, Bylaws,
and Rules and Regulations.
4.8 Animals. Only a reasonable number of ordinary household pets may be kept at the Lot so
long as they are not kept, bread, or raised for commercial purposes. No livestock or
poultry of any kind. Owners whose pets damage other Owners’ Lots or personal property
must reimburse the other Owners for reasonable costs actually incurred in repairing the
damage. An Owner must ensure that the Owner’s dog is leashed when on the Property
and outside of the Owner’s Lot. Pets may not be an unreasonable nuisance or a source of
endangerment to other Owners. An Owner may be required to remove a pet upon the
receipt of the third notice in writing from the Board of a violation of any rule, regulation,
or restriction governing pets within the Property.
4.9 Nuisance. No noxious, harmful, or offensive activities may be carried out on any Lot or
Common Area. Nor may anything be done or placed on any Lot or Common Area that
interferes with or jeopardizes the enjoyment of, or that is a source of annoyance to, the
Owner or other Occupants.
4.10 Parking. The garage on each Lot shall be used to park the Owner’s or Occupant’s
primary passenger vehicle. Using the garage for minor storage is allowed so long as the
vehicle is still able to park in the garage. The parking spots in the common area may be
used by Owners, Occupants, or their guests for passenger vehicle parking only.
4.11 Vehicles in Disrepair. No Owner may permit any vehicle that is in a state of disrepair or
that is not currently licensed to be abandoned or to remain parked on any Lot (if visible
by other Owners) or street for a period in excess of 48 hours. A vehicle will be deemed in
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a “state of disrepair” when the Board reasonably determines that its presence offends the
Occupants of the neighborhood.
4.12 Signs. No signs may be erected or maintained on any Lot, except that not more than one
“For Sale” or “For Rent” sign placed by the Owner or by a licensed real estate agent, not
exceeding 24 inches high and 36 inches long, may be temporarily displayed on any Lot.
The restrictions contained in this section do not prohibit the temporary placement of
political signs on any Lot by the Owner or Occupant. However, political signs must be
removed within three days after the election day pertaining to the subject of the sign. Real
estate signs must be removed within three days after the sale closing date. This Section
does not prohibit decorative front door or front porch signs. The Declarant is exempt
from this provision for the purpose of development of the Property and selling of the
Lots.
4.13 Rubbish and Trash. No Lot or part of the Common Maintenance Area may be used as a
dumping ground for trash or rubbish of any kind. All garbage and other waste must be
kept in appropriate containers for proper disposal and must be kept out of public view.
The storage of unsightly items which are viewable from adjacent Lots or street view is
prohibited.
4.14 Fences and Hedges. No fences or boundary hedges may be installed or replaced without
prior written approval of the ARC. All such fences and hedges must have convenient
access ways to allow the Association to carry out its exterior maintenance and
landscaping responsibilities for the Common Area.
4.15 Antennas and Satellite Dishes. Only exterior satellite dishes or antennas with a surface
diameter of one meter or less, antennas designed to receive television broadcast signals,
and other antennas or devices protected by the Federal Communications Commission,
may be placed on any Lot. The Board may adopt reasonable rules and regulations
governing the installation, safety, placement, and screening of such antennas, satellite
dishes, and other transmission devices. Such rules may not unreasonably delay or
increase the cost of installation, maintenance, or use or preclude reception of a signal of
acceptable quality.
4.16 Exterior Lighting or Noise-Making Devices. Except with the consent of the Board, no
exterior lighting visible from the public streets (except for customary entry, walkway or
landscape lighting) may be installed or maintained on any Lot. This Section does not
apply to seasonal or holiday decorations and lighting, which are permitted at reasonable
times before and after holidays.
4.17 Right of Maintenance and Entry by Association. If an Owner fails to perform
maintenance or repairs to the exterior or landscape improvements the Owner is obligated
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to perform under this Declaration, and if the Board determines, after giving written notice
to the Owner, that the maintenance, repair, or both is necessary to preserve the
attractiveness, quality, nature, or value of the Property, the Board may cause the
maintenance or repair to be performed and may enter the subject Lot when necessary in
connection with the performance thereof. Such entry shall not constitute trespass. The
costs of such maintenance and/or repair are chargeable to the Owner of the Lot as an
Assessment, which may be collected and enforced as any other assessments authorized
hereunder. Under no circumstance may the Association or its agents enter an Owner’s
dwelling.
4.18 Association Rules and Regulations. The Board from time to time may adopt, modify, or
revoke the Rules and Regulations governing the conduct of persons and the operation and
use of Lots and the Common Area as it may deem necessary or appropriate to ensure the
peaceful and orderly use and enjoyment of the Property and the administration and
operation of the Association.
4.18.1 Distribution of Rules and Regulations. A copy of the Rules and Regulations,
upon adoption, and a copy of each amendment, modification, or revocation
thereof, will be delivered promptly by the Board to each Owner and will be
binding on all Owners and Occupants of all Lots on the date of delivery or actual
notice thereof.
4.18.2 Adoption. The method of adoption of the Rules and Regulations will be provided
in the Bylaws of the Association. Subject to the Board’s approval or consent, the
ARC may adopt rules and regulations pertinent to its functions.
4.19 Ordinances and Regulations. The standards and restrictions set forth in this Article 4
are the minimum required. To the extent that governmental ordinances and regulations
are more restrictive or provide for a higher or different standard, the governmental
ordinances and regulations will prevail.
4.20 Temporary Structures. No structure of a temporary character or any trailer, basement,
tent, shack, garage, barn, or other outbuilding may be used on any Lot as a residence,
either temporarily or permanently.
ARTICLE 5
COMMON AREA
5.1 Use of Common Area. Use of the Common Area is subject to the provisions of the
Declaration, Bylaws, and the Rules and Regulations adopted by the Board. There must be
no obstruction of any part of the Common Area. Nothing may be stored or kept in the
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Common Area without the prior written consent of the Board, apart from passenger
vehicles in the designated parking area. No alterations or additions to the Common Area
will be permitted without the prior written consent of the Board. The Common Area
owned by the Association is depicted in the Plat and consists of Tract(s)
_______________.
5.2 Maintenance of Common Area. The Association will be responsible for maintenance,
repair, replacement, landscaping, and upkeep of the Common Area [except where such
maintenance is provided by Lane County, a government agency, or a utility company] at
the equal expense of the Owners of Lots “A” through “F”. The Association must keep the
Common Area in good condition and repair, provide for all necessary services, and cause
all acts to be done that may be necessary or proper to ensure the maintenance of the
Common Area.
5.3 Alterations to Common Area. Only the Association may construct, reconstruct, or alter
any improvement located on the Common Area. A proposal for any construction,
alteration, maintenance, or repair of any such improvement may be made at any Board
meeting.
5.4 Funding. Expenditures for replacement or major repairs to an existing improvement will
be made from the Reserve Account. Regular maintenance, repair, and operating expenses
will be funded by annual assessments as provided under Article 9. The Board may levy a
special assessment to fund any construction, alteration, repair, or maintenance of an
improvement (or any other portions of the Common Area) for which no reserve has been
collected or for which the Reserve Account is insufficient to cover the cost of the
proposed construction, alteration, repair, or maintenance, as provided under Article 9.
5.7 Damage or Destruction of Common Area. If all or any portion of the Common Area is
damaged or destroyed by an Owner or any of the Owner’s guests, Occupants, tenants,
licensees, agents, or members of the Owner’s family in a manner that would subject the
Owner to liability for the damage under Oregon law, the Owner hereby authorizes the
Association to repair the damage. The Association must repair the damage and restore the
area in workmanlike manner as originally constituted or as may be modified or altered
subsequently by the Association at the discretion of the Board. Reasonable costs incurred
in connection with effecting the repairs will become a special assessment on the Lot and
against the Owner who caused or is responsible for the damage.
5.8 Power of Association to Sell, Dedicate, or Transfer Common Area. As provided in
ORS 94.665, the Association may sell, dedicate, transfer, grant a security interest in, or
grant an easement for installation and maintenance of utilities or for similar purposes
with respect to, any portion of the Common Area. Except for grants of easements for
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utility-related purposes, no such sale, dedication, transfer, or grant of a security interest
will be effective unless approved by 80 percent of the votes held by Owners other than
Declarant.
ARTICLE 6
MEMBERSHIP IN THE ASSOCIATION
6.1 Members. Each Owner is a member of the Association. Membership in the Association
is appurtenant to, and may not be separated from, ownership of any Lot. Transfer of
ownership of a Lot automatically transfers membership in the Association. Without any
other act or acknowledgment, Occupants and Owners will be governed and controlled by
this Declaration, the Articles, Bylaws, and the Rules and Regulations of the Association
and any amendments thereof.
6.2 Proxy. Each Owner may cast the Owner’s vote in person, by written ballot, by electronic
ballot if the Board of Directors so elects, or by a proxy executed by the Owner. An
Owner may not revoke a proxy given under this section except by actual notice of
revocation to the person presiding over a meeting of the Association. A proxy will not be
valid if it is undated or purports to be revocable without notice. A proxy will terminate
one year after its date, unless the proxy specifies a shorter term.
6.3 Voting Rights. The Association has two classes of voting members:
6.3.1 Class A. Class A members include all Owners of Lots other than Declarant, and
each Class A member is entitled to one vote for each Lot owned with respect to
all matters on which Owners are entitled to vote.
6.3.2 Class B. The Class B member is the Declarant, its successors, and its assigns. The
Class B member has three votes for each Lot owned. The Class B membership
will cease and be converted to Class A membership upon the earlier of the
following dates (the “Termination Date”):
(a) The date on which 100 percent of the total number of Lots in Townhomes
on 17th have been sold and conveyed to Owners other than Declarant; or
(b) The date on which Declarant elects in writing to terminate its Class B
membership.
6.3.3 Termination Date. After the Termination Date, each Owner, including the
Declarant if Declarant still owns a Lot or Lots, will have one vote for each Lot
owned with respect to all matters on which Owners are entitled to vote, and the
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total number of votes will be equal to the total number of Lots subject to this
Declaration.
6.3.4 Votes Per Lot. Each Lot is allotted only one vote. Fractional or split votes from
multiple owners of a Lot are not allowed and will be disregarded, except for the
purpose of determining quorum.
6.4 Procedure. All meetings of the Association, the Board, and Association committees (if
applicable) will be conducted with such rules of order as may from time to time be
adopted by the Board. Unless other rules of order are adopted by a resolution of the
Board, Robert’s Rules of Order published by the Robert’s Rules Association will apply.
Notwithstanding which rules of order are adopted, the President will be entitled to vote
on all matters, not merely to break a tie vote. For purposes of voting, “majority” means
any number greater than 50%. A tie vote does not constitute a majority.
ARTICLE 7
DECLARANT CONTROL
7.1 Interim Board and Officers. Declarant hereby reserves administrative control of the
Association. Declarant, in its sole discretion, has the right to appoint and remove
members of an interim board (the “Interim Board”), which will manage the affairs of the
Association and be invested with all powers and rights of the Board until the Turnover
Meeting (as hereinafter defined). The Interim Board will consist of one to three members.
Notwithstanding the provision of this section, at the Turnover Meeting, at least one
Director will be elected by Owners other than Declarant, even if Declarant otherwise has
voting power to elect all three Directors.
7.2 Turnover Meeting. Declarant must call a meeting for the purposes of turning over
administrative control of the Association from Declarant to the Class A members within
90 days of the earlier of the following dates:
7.2.1 Earliest Date. The date on which Lots representing 100 percent of the total
number of votes of all Lots in Townhomes on 17th have been sold and conveyed
to persons other than Declarant; or
7.2.2 Optional Turnover. The date on which Declarant has elected in writing to
terminate Class B membership.
7.3 Notice. Declarant must give notice of the Turnover Meeting to each Owner as provided
in the Bylaws. If Declarant does not call the Turnover Meeting required under this
section, any Owner may do so.
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ARTICLE 8
DECLARANT’S SPECIAL RIGHTS
8.1 General. Declarant is undertaking the work of developing Lots and other improvements
within Townhomes on 17th. The completion of the development work and the marketing
and sale of the Lots is essential to the establishment and welfare of the Property as a
residential community. Until the homes on all Lots on the Property have been
constructed, fully completed, and sold, with respect to the Common Area and each Lot on
the Property, Declarant has the special rights set forth in this Article 8.
8.2 Marketing Rights. Declarant has the right to maintain a sales office and model on one or
more of the Lots that Declarant owns. Declarant and prospective purchasers and their
agents have the right to use and occupy the sales office and models during reasonable
hours any day of the week. Declarant may maintain a reasonable number of “For Sale”
signs at reasonable locations on the Property, including, without limitation, on the
Common Area.
8.3 Declarant Easements. Declarant reserves easements over the Property as more fully
described under Article 3 above.
ARTICLE 9
FUNDS AND ASSESSMENTS
9.1 Purpose of Assessments; Expenses. The assessments levied by the Association will be
used exclusively to promote the recreation, health, safety, aesthetics, and welfare of the
Owners at Three Mile Prairie Subdivision, for the improvement, operation, and
maintenance of the Common Areas, for the administration and operation of the
Association, and for property and liability insurance.
9.2 Covenants to Pay. Each Owner covenants and agrees to pay the Association the
assessments and any additional charges levied under this Declaration or the Bylaws.
10.2.2 Offsets. No offsets against any assessment will be permitted for any reason,
including, without limitation, any claim that the Association is not properly
discharging its duties.
10.2.3 Right to Profits. Association profits, if any, will be the property of the
Association and will be contributed to the Current Operating Account.
9.4 Annual Assessments. Annual assessments for each fiscal year will be established when
the Board approves the budget for that fiscal year. For proration purposes, any portion of
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a month will count as a full month. Annual assessments will be payable on a periodic
basis, not more frequently than monthly, as determined by the Board. The fiscal year will
be determined by a majority vote of the Board of Directors.
9.4.1 Budgeting. Each year the Board will prepare and adopt the budget of the
Association. The budget shall include moneys to be allocated to the reserve
account and operating account. Within 30 days after adopting the annual budget,
the Board must provide a summary of the budget to all Members. If the Board
fails to adopt a budget, the last adopted annual budget shall continue in effect.
9.4.2 Allocation of Assessments. The total amount in the budget will be charged
equally against all Lots as annual assessments. In the event an Owner or Owners
cause the Association to incur expenses, which are not ordinary expenses, because
of the Owner’s or their Occupant’s or guests’ acts or omissions, the Board may
levy those expenses against those individual Lots.
9.4.3 Nonwaiver of Assessments. If before the expiration of any fiscal year the
Association fails to fix annual assessments for the next fiscal year, the annual
assessments established for the preceding year will continue until a new annual
assessment is fixed.
9.5 Special Assessments. The Board or the Owners have the power to levy special
assessments against an Owner or all Owners in the following manner for the following
purposes:
9.5.1 Correct Deficit. To correct a deficit in the operating budget, by vote of a majority
of the Board;
9.5.2 Special Obligations of an Owner. To collect amounts due to the Association
from an Owner for breach of the Owner’s obligations under this Declaration, the
Bylaws, or the Rules and Regulations, by vote of a majority of the Board;
9.5.3 Repairs. To collect additional amounts necessary to make repairs or renovations
to the Common Area if sufficient funds are not available from the operating
budget or replacement reserve accounts, by vote of a majority of the Board; or
9.5.4 Capital Improvements. To make capital acquisitions, additions, or
improvements, by vote of at least 80 percent of all votes allocated to the Lots.
9.6 Accounts. Assessments collected by the Association will be deposited into at least two
separate accounts with a bank, which accounts will be clearly designated as (a) the
Operating Account and (b) the Reserve Account. and
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9.6.1 Operating Account. The Board must deposit those portions of the assessments
collected for current maintenance and operation into the current Operating
Account. All costs other than those to be paid from the Reserve Account may be
paid from the Operating Account.
9.6.2 Reserve Account. The Board must deposit those portions of the assessments
collected as reserves for replacement and deferred maintenance of capital
improvements into the Reserve Account. The Association will pay out of the
Reserve Account only those costs that are attributable to the maintenance, repair, or
replacement of Common Area that normally requires replacement, in whole or in
part, within one to 30 years and not for regular or periodic maintenance and
expenses. No funds collected for the Reserve Account may be used for ordinary
current maintenance and operation purposes. Funds collected may not be refunded
to the Owners. The reserve account and requirements are more particularly
described in the Bylaws.
9.6.2.1 Calculation of Reserve Assessment; Reserve Study. The Board must
annually conduct a reserve study, or review and update an existing study,
of the Common Area to determine the Reserve Account requirements. A
Reserve Account must be established for those items of the Common Area
all or part of which will normally require maintenance, repair, or
replacement in more than one and less than 30 years. The reserve study
must include (a) identification of all items for which reserves are required
to be established; (b) the estimated remaining useful life of each item as of
the date of the reserve study; (c) the estimated cost of maintenance, repair,
or replacement of each item at the end of its useful life; and (d) a 30-year
plan with regular and adequate contributions, adjusted by estimated
inflation and interest earned on reserves, to meet the maintenance, repair,
and replacement schedule. The Reserve Account assessment must be
allocated according to section 9.4.2.
9.6.2.2 Loan from Reserve Account. After the Turnover Meeting described in
Section 7.2, the Board may borrow funds from the Reserve Account to
cover the unexpected costs of items that require immediate repair or
replacement (for example, damage from unexpected, extreme weather).
Funds borrowed must be repaid later from assessments. Not later than the
adoption of the budget for the following year, the Board must adopt by
resolution a written payment plan providing for repayment within a
reasonable period.
Declaration for Townhomes on 17th Page 17 of 20
9.6.2.5 Refunds of Assessments. Assessments paid into the Reserve Account are
the property of the Association and are not refundable to sellers or Owners
of Lots.
9.7 Default in Payment of Assessments; Enforcement of Liens.
9.7.1 Personal Obligation. Any assessment properly imposed under this Declaration or
the Bylaws is the joint and several personal obligation of all Owners of the Lot to
which the assessment pertains. In a voluntary conveyance (i.e., one other than
through foreclosure or a deed in lieu of foreclosure), the grantees will be jointly
and severally liable with the grantors for all Association assessments imposed
through the recording date of the instrument effecting the conveyance. A suit for a
money judgment may be initiated by the Association to recover the assessments
without either waiving or foreclosing the Association’s lien.
9.7.2 Association Lien. The Association has a lien against each Lot for any assessment
or installment thereof that is delinquent. The lien is a continuing lien, and will
accumulate all future assessments or installments, interest, late fees, penalties,
fines, attorney fees (whether or not suit or action is instituted), actual
administrative costs, and other appropriate costs properly chargeable to an Owner
by the Association, until such amounts are fully paid. Recording of the
Declaration constitutes record notice and perfection of the lien. The lien may be
foreclosed at any time in accordance with the Oregon Planned Community Act.
The Association must record a notice of a claim of lien for assessments and other
charges in the deed records of Lane County, Oregon, before any suit to foreclose
may be filed. The lien of the Association will be superior to all other liens and
encumbrances except property tax liens; and any first mortgage, deed of trust, or
land sale contract recorded before the Association’s notice of lien.
9.7.3 Interest, Fines, Late Fees, and Penalties. The Board, in its reasonable
discretion, may from time to time adopt resolutions to set the rate of interest and
to impose late fees, fines, and penalties on delinquent assessments or for
violations of the provisions of this Declaration, the Bylaws, and the Rules and
Regulations adopted by the Board.
9.7.4 Acceleration of Assessments. If an Owner is delinquent in payment of any
assessment or installment on any assessment, the Association, on not less than 10
days’ written notice to the Owner, may accelerate the due date of the full annual
assessment for that fiscal year and all future installments of any special
assessments.
Declaration for Townhomes on 17th Page 18 of 20
9.7.5 Association’s Right to Rents; Receiver. In any foreclosure suit by the
Association with respect to a lien described in section 10.7.2, the Association is
entitled to collect reasonable rent from the defaulting Owner for the use of the
Owner’s Lot and is entitled to the appointment of a receiver.
ARTICLE 10
GENERAL PROVISIONS
10.1 Records. The Board must preserve and maintain minutes of the meetings of the
Association, the Board, and any committees. The Board must also keep detailed and
accurate financial records, including individual assessment accounts of Owners, the
balance sheet, and income and expense statements. Individual assessment accounts must
designate the name and address of the Owner or Owners of the Lot, the amount of each
assessment as it becomes due, the amounts paid on the account, and the balance due on
the assessments. The minutes of the Association, the Board, and Board committees, and
the Association’s financial records must be maintained in the State of Oregon and
reasonably available for review and copying by the Owners. A reasonable charge may be
imposed by the Association for providing copies.
10.2 Enforcement. The Association, the Owners, and any mortgagee holding an interest on a
Lot have the right to enforce all of the covenants, conditions, restrictions, reservations,
easements, liens, and charges now or hereinafter imposed by any of the provisions of this
Declaration as may appertain specifically to such parties or Owners by any proceeding at
law or in equity. Failure by either the Association or by any Owner or mortgagee to
enforce any covenant, condition, or restriction herein contained will in no event be
deemed a waiver of their right to do so thereafter.
10.3 Attorney Fees. If suit or action is commenced to enforce the terms and provisions of this
Declaration (including without limitations, suit or action for the collection of
assessments), the prevailing party will be entitled to its actual administrative costs
incurred because of a matter or event that is the subject of the suit or action, attorney fees
and costs in the suit or action to be fixed by the trial court, and in the event of an appeal,
the cost of the appeal, together with reasonable attorney fees, to be set by the appellate
court. In addition thereto, the Association will be entitled to its reasonable attorney fees
and costs incurred in any enforcement activity or to collect delinquent assessments,
together with the Association’s actual administrative costs, whether or not suit or action
is filed.
Declaration for Townhomes on 17th Page 19 of 20
10.4 Severability. Invalidation of any one of these covenants, conditions, or restrictions by
judgment or court order will not affect the other provisions hereof and the same will
remain in full force and effect.
10.6 Amendment. After the Turnover Meeting, this Declaration may be amended at any time
by an instrument approved by not less than 75 percent of the total votes allocated to the
Lots. However, no amendment deleting or affecting any right of Declarant or its
successor or assignee, including, without limitation, an amendment to this Article, may
be adopted without the prior written consent of Declarant or its successor or assignee so
long as the Declarant still owns Lots as a Declarant.
10.8.1 Unilateral Amendment by Declarant. In addition to all other special rights of
Declarant provided in this Declaration, Declarant may amend this Declaration in order to
comply with the requirements of the Federal Housing Administration of the United
States, the Federal National Mortgage Association, the Government National Mortgage
Association, the Federal Home Loan Mortgage Corporation, any department, bureau,
board, commission, or agency of the United States or the State of Oregon, or any other
state in which the Lots are marketed and sold, or any corporation wholly owned, directly
or indirectly, by the United States or the State of Oregon, or such other state, the approval
of which entity is required in order for it to insure, guarantee, or provide financing in
connection with development of the Property and sale of Lots.
IN WITNESS WHEREOF, Declarant has executed this instrument this _____ day of
________________, 20___.
___________________________________________
Declarant: GS Enterprises, LLC
By: Gideon Roberts
Its: Managing Member
STATE OF OREGON
County of Lane
)
)
)
ss.
This instrument was acknowledged before me on _____________, 20___, by Gideon Roberts, as
managing member and on behalf of GS Enterprises, LLC.
Declaration for Townhomes on 17th Page 20 of 20
/s/_____________________________
Notary Public for Oregon
My commission expires: ________
EXHIBIT A
Legal Description
[Insert legal description from plat]
Declaration for Townhomes on 17th Page 21 of 20
EXHIBIT B
[Insert Bylaws for Recording]