4140.2

APPENDIX 2

DECLARATION

OF COVENANTS, CONDITIONS AND RESTRICTIONS

THIS DECLARATION, made on the date hereinafter set forth by
\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
hereinafter referred to as

\"Declarant\".

WITNESSETH:

WHEREAS, Declarant is the owner of certain property in
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
County of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,

State of\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, which is
more particularly described as:

(Insert legal description)

NOW THEREFORE, Declarant hereby declares that all of the properties

described above shall be held, sold and conveyed subject to the
following

easements, restrictions, covenants, and conditions, which are for the

purpose of protecting the value and desirability of, and which shall run

with, the real property and be binding on all parties having any right,

title or interest in the described properties or any part thereof, their

heirs, successors and assigns, and shall inure to the benefit of each
owner

thereof.

ARTICLE I

DEFINITIONS

Section 1. \"Association\" shall mean and refer to
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, its successors and
assigns.

Section 2. \"Owner\" shall mean and refer to the record owner, whether

one or more persons or entities, of a fee simple title to any Lot which
is

a part of the Properties, including contract sellers, but excluding
those

having such interest merely as security for the performance of an

obligation.

FM Form 1401

VA Form 26-8201

Rev. August 1968

Page 1 4/73

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\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

4140\. 2

APPENDIX 2

2

Section 3. \"Properties\" shall mean and refer to that certain real

property hereinbefore described, and such additions thereto as may

hereafter be brought within the jurisdiction of the Association.

Section 4. \"Common Area\" shall mean all real property owned by the

Association for the common use and enjoyment of the owners. The Common

Area to be owned by the Association at the time of the conveyance of the

first lot is described as follows:

Section 5. \"Lot\" shall mean and refer to any plot of land shown upon

any recorded subdivision map of the Properties with the exception of the

Common Area.

Section 6. \"Declarant\" shall mean and refer to
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ its successors and
assigns if such successors or

assigns should acquire more than one undeveloped Lot from the Declarant
for

the purpose of development.

ARTICLE II

PROPERTY RIGHTS

Section 1. Owners\' Easements of Enjoyment. Every owner shall have a

right and easement of enjoyment in and to the Common Area which shall be

appurtenant to and shall pass with the title to every Lot, subject to
the

following provisions:

\(a\) the right of the Association to charge reasonable admission

and other fees for the use of any recreational facility situated upon

the Common Area;

\(b\) the right of the Association to suspend the voting rights

and right to use of the recreational facilities by an owner for any

period during which any assessment against his Lot remains unpaid; and

for a period not to exceed 60 days for any infraction of its published

rules and regulations;

\(c\) the right of the Association to dedicate or transfer all or

any part of the Common Area to any public agency, authority, or

utility for such purposes and subject to such conditions as may be

agreed to by the members.

Rev. August 1968

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4140.2

APPENDIX 2

3

No such dedication or transfer shall be effective unless an instrument

signed by two-thirds (2/3) of each class of members agreeing to such

dedication or transfer has been recorded.

Section 2. Delegation of Use. Any owner may delegate, in accordance

with the By-Laws, his right of enjoyment to the Common Area and
facilities

to the member of his family, his tenants, or contract purchasers who
reside

on the property.

ARTICLE III

MEMBERSHIP AND VOTING RIGHTS

Section 1. Every owner of a lot which is subject to assessment shall

be a member of the Association. Membership shall be appurtenant to and
may

not be separated from ownership of any Lot which is subject to
assessment.

Section 2. The Association shall have two classes of voting

membership:

Class A. Class A members shall be all Owners with the exception

of the Declarant and shall be entitled to one vote for each Lot owned.

When more than one person holds an interest in any Lot, all such

persons shall be members. The vote for such Lot shall be exercised as

they among themselves determine, but in no event shall more than one

vote be cast with respect to any Lot.

Class B. The Class B member(s) shall be the Declarant and shall

be entitled to three (3) votes for each Lot owned. The Class B

membership shall cease and be converted to Class A membership on the

happening of either of the following events, whichever occurs earlier:

\(a\) when the total votes outstanding in the Class A

membership equal the total votes outstanding in the

Class B membership, or on

\(b\) on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19 \_\_\_\_\_\_\_.

ARTICLE IV

COVENANT FOR MAINTENANCE ASSESSMENTS

Section 1. Creation of the Lien and Personal Obligation of

Assessments. The Declarant, for each Lot owned within the Properties,

hereby covenants, and each Owner of any Lot by acceptance of a deed

therefor, whether or not it shall be so expressed in such deed, in
deemed

to covenant and agree to pay to the Association: (1) annual assessments
or

charges, and (2) special assessments for capital improve. ments, such

assessments to be established and collected as hereinafter provided.

Rev. August 1968

Page 3 4/73

HUD-Wash., D.C.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

4140.2

APPENDIX 2

4

The annual and special assessments, together with interest, costs, and

reasonable attorney\'s fees, shall be a charge on the land and shall be
a

continuing lien upon the property against which each such assessment is

made. Each such assessment, together with interest, costs, and
reasonable

attorney\'s fees, shall also be the personal obligation of the person
who

was the Owner of such property at the time when the assessment fell due.

The personal obligation for delinquent assessments shall not pass to his

successors in title unless expressly assumed by them.

Section 2. Purpose of Assessments. The assessments levied by the

Association shall be used exclusively to promote the recreation, health,

safety, and welfare of the residents in the Properties and for the

improvement and maintenance of the Common Area, and of the homes
situated

upon the Properties.

Section 3. Maximum Annual Assessment. Until January 1 of the year

immediately following the conveyance of the first Lot to an Owner, the

maximum annual assessment shall be \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
dollars (\$\_\_\_\_\_\_\_\_\_\_)

per Lot.

\(a\) From and after January 1 of the year immediately following

the conveyance of the first Lot to an Owner, the maximum annual

assessment may be increased each year not more than 3% above the

maximum assessment for the previous year without a vote of the

membership.

\(b\) From and after January 1 of the year immediately following

the conveyance of the first Lot to an Owner, the maximum annual

assessment may be increased above 3% by a vote of two-thirds (2/3) of

each class of members who are voting in person or by proxy, at a

meeting duly called for this purpose.

\(c\) The Board of Directors may fix the annual assessment at an

amount not in excess of the maximum.

Section 4. Special Assessments for Capital Improvements. In addition

to the annual assessments authorized above, the Association may levy, in

any assessment year, a special assessment applicable to that year only
for

the purpose of defraying, in whole or in part, the cost of any

construction, reconstruction, repair or replacement of a capital

improvement upon the Common Area, including fixtures and personal
property

related thereto, provided that any such assessment shall have the assent
of

two-thirds (2/3) of the votes of each class of members who are voting in

person or by proxy at a meeting duly called for this purpose.

Rev. August 1968

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4140\. 2

APPENDIX 2

5

Section 5. Notice and Quorum for Any Action Authorized Under Sections

3 and 4. Written notice of any meeting called for the purpose of taking
any

action authorized under Section 3 or 4 shall be sent to all members not

less than 30 days nor more than 60 days in advance of the meeting. At
the

first such meeting called, the presence of members or of proxies
entitled

to cast sixty percent (60%) of all the votes of each class of membership

shall constitute a quorum. If the required quorum is not present, anther

meeting may be called subject to the same notice requirement, and the

required quorum at the subsequent meeting shall be one-half (1/2) of the

required quorum at the preceding meeting. No such subsequent meeting
shall

be held more than 60 days following the preceding meeting.

Section 6. Uniform Rate of Assessment. Both annual and special

assessments must be fixed at a uniform rate for all Lots and may be

collected on a monthly basis.

Section 7. Date of Commencement of Annual Assessments: Due Dates.

The annual assessments provided for herein shall commence as to all Lots
on

the first day of the month following the conveyance of the Common Area.

The first annual assessment shall be adjusted according to the number of

months remaining in the calendar year. The Board of Directors shall fix

the amount of the annual assessment against each Lot at least thirty
(30)

days in advance of each annual assessment period. Written notice of the

annual assessment shall be sent to every Owner subject thereto. The due

dates shall be established by the Board of Directors. The Association

shall, upon demand, and for a reasonable charge, furnish a certificate

signed by an officer of the association setting forth whether the

assessments on a specified Lot have been paid.

Section 8. Effect of Nonpayment of Assessments: Remedies of the

Association. Any assessment not paid within thirty (30) days after the
due

date shall bear interest from the due date at the rate of 6 percent per

annum. The Association may bring an action at law against the Owner

personally obligated to pay the same, or foreclose the lien against the

property. No owner may waive or otherwise escape liability for the

assessments provided for herein by non-use of the Common Area or

abandonment of his Lot.

Section 9. Subordination of the Lien to Mortgages. The lien of the

assessments provided for herein shall be subordinate to the lien of any

first mortgage. Sale or transfer of any Lot shall not affect the
assessment

lien. However, the sale or transfer of any Lot pursuant to mortgage

foreclosure or any proceeding in

Rev. August 1968

Page 5 4/73

HUD-Wash., D.C.

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4140.2

APPENDIX 2

6

lieu thereof, shall extinguish the lien of such assessments as to
payments

which became due prior to such sale or transfer. No sale or transfer
shall

relieve such Lot from liability for any assessments thereafter becoming
due

or from the lien thereof.

ARTICLE V

ARCHITECTURAL CONTROL

No building, fence, all or other structure shall be commenced, erected

or maintained upon the Properties, nor shall any exterior addition to or

change or alteration therein be made until the plans and specifications

showing the nature, kind, shape, height, materials, and location of the

same shall have been submitted to and approved in writing as to harmony
of

external design and location in relation to surrounding structures and

topography by the Board of Directors of the Association, or by an

architectural committee composed of three (3) or more representatives

appointed by the Board. In the event said Board, or its designated

committee, fails to approve or disapprove such design and location
within

thirty (30) days after said plans and specifications have been submitted
to

it, approval will not be required and this Article will be deemed to
hove

been fully complied with.

ARTICLE VI

GENERAL PROVISIONS

Section 1. Enforcement. The Association, or any Owner, shall have

the right to enforce, by any proceeding at law or in equity, all

restrictions, conditions, covenants, reservations, liens and charges now
or

hereafter imposed by the provisions of this Declaration.. Failure by the

Association or by any Owner to enforce any covenant or restriction
herein

contained shall in no event be deemed a waiver of the right to do so

thereafter.

Section 2. Severability. Invalidation of any one of these covenants

or restrictions by judgment or court order shall in no wise affect any

other provisions which shall remain in full force and effect.

Section 3. Amendment. The covenants and restrictions of this

Declaration shall run with and bind the land, for a term of twenty (20)

years from the date this Declaration is recorded, after which time they

shall be automatically extended for successive periods of ten (10)
years.

This Declaration may be amended during

Rev. August 1968

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4140.2

APPENDIX 2

7

the first twenty (20) year period by an instrument signed by not less
than

ninety percent (90%) of the Lot Owners. and thereafter by an instrument

signed by not less than seventy-five percent (75%) of the Lot Owners.
Any

amendment must be recorded.

Section 4. Annexation. Additional residential property and Common

Area may be annexed to the Properties with the consent of two-thirds
(2/3)

of each class of members.

Section 5. FHA/VA Approval. As long as there is a Class B

membership, the following actions will require the prior approval of the

Federal Housing Administration or the Veterans Administration:
Annexation

of additional properties, dedication of Common Area, and amendment of
this

Declaration of Covenants, Conditions and Restrictions.

IN WITNESS WHEREOF, the undersigned, being the Declarant herein, has

hereunto set its hand and seal this \_\_\_\_\_\_\_\_\_\_\_\_ day of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,

19\_\_\_\_ .

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Declarant

By:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Add appropriate acknowledgment)

Rev. August 1968

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HUD-Wash., D.C.