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07-104483
CiT Ak Federal Way October 19, 2007 Mr. Joe McCarthy Kantor, Taylor, McCarthy, P.C. 1501 4lh Avenue, Suite 1610 Seattle, WA 98101 RE: FILE #07-104483-00-AD; SAYBROOK CONDOMINIUM INQUIRY (Pheasant Run Apartments) Dear Mr. McCarthy: 1FILE CITY HALL 33325 8th Avenue South Mailing Address: PO Box 9718 Federal Way, WA 98063-9718 (253) 835-7000 www.cityoffederalway.com The following is in response to your August 13, 2007 letter, and documents resubmitted on September 7, 2007, requesting confirmation that the City of Federal Way recognize that underlying lots associated with Heatherwood Phase I and Heatherwood Phase II were consolidated for tax purposes due to common ownership and that a subdivision of land is not required to create a condominium known as Saybrook (a.k.a. Heatherwood Phase I) or to sell the Pheasant Run Apartments (a.k.a. Heatherwood Phase II). Based on the information provided and researched, city staff concurs with your position that the Saybrook/Heatherwood I project and the Pheasant Run/Heatherwood II projects are located on separate parcels of real property. The City also concurs that the Saybrook/Heatherwood I project and the Pheasant Run/Heatherwood 11 project could be assigned separate and individual tax identification numbers by King County, consequently segregating from the overall aggregated parcel. A formal subdivision process is not needed to establish the Saybrook Condominiums or to sell the Pheasant Run apartments. However, we recommend that the Pheasant Run/Heatherwood II site undergo the City's formal "Lot Line Elimination" process, effectively consolidating parcels C through K into one parcel of real property and eliminating potential lot line intrusions by existing buildings. This process would further memorialize and consolidate the lots into one aggregated lot recorded at King County so this process is not questioned in the future. Copies of applicable forms are enclosed. I can be reached at 253-835-2642 should you have any questions about this letter. Sincerely, Deb Barker Senior Planner enc: LLE Handout Master Land Use Application c: Russell Scheidelman, Abstracts Division, King County Dept. of Assessments, 500 41h Ave. Room 725, Seattle, WA 98104-2384 Diane Murdock, Condominium Technician, King County Dept. of Assessments, 500 4`h Ave. Room 725, Seattle, WA 98104-2384 Jayanne A. Hino, Davis Wright, Tremaine, LLP, 1201 Third Avenue, Suite 2200, Seattle, Washington 98101-3045 Sean Wells, Senior Public Works Engineering Plans Reviewer Monica Buck, Federal Way Law Department Doc. l D 42780 CITY OF Federal Way DATE: October 9, 2007 MEMORANDUM Public Works Department TO: Deb Barker f, FROM: Sean Wells, SUBJECT: SAYBROOK CONDOMINIUM INQUIRY (PHEASANT RUN) - (07-104483-00-AD) 2621 S 272ND ST Bldg 1 I have reviewed the material submitted by the applicant on August 13, 2007 and the second set of documents submitted on September 7, 2007. The applicant is requesting that we recognize that the Saybrook Condominiums (f.k.a. Heatherwood Phase I � and the Pheasant Run Apartments (f.k.a.. Heatherwood Phase II' are on separate parcels of real property. He is requesting that we recognize that the underlying i P p p p rtY• q 9 9 Y 9 lots were consolidated for tax purposes due to a common ownership, and that a subdivision of the land is not required to create the condominium or to sell the Pheasant Run Apartments. The following is a brief synopsis of my review and findings. Heatherwood I Saybrook Parcel The Saybrook parcels were originally part of a larger parcel of land in 1942. At that time and subsequently, it was segregated by deeds and sold to varying individuals and entities. From 1942 until 1983, the parcels underwent various purchases and sales, including several segregations by deed and Superior Court Causes. In 1983, the Saybrook parcels depicted as "A" and "B" consisted of two underlying tax parcels and real properties. They were each sold individually to the same buyer (J. B. Wright Corporation). This establishes common ownership of parcels "A" and "B". J. B. Wright developed the site in King County as "Heatherwood Phase I" in 1983-1985. This project was reviewed and permitted on its own. Sometime between 1983 and 1985, the two underlying tax lots (720480-0005 and -0064) were aggregated into one parcel number (720480-0005). It is not clear as whether this request was done at the request of the county or the request of the owner. It is interesting to note, however, that one of the buildings on the site plan is located on the common boundary line between original parcels -0005 and -0064, something that Building Code specifically prohibits. This leads me to believe that the parcels were combined due to the land use and building permit process at that time. The site was sold in 1985 as one parcel to Hutton Real American Properties. ("Hutton' Heatherwood If Pheasant Run Parcel While the applicant didn't give a complete history of this site, some information was provided. This site originally consisted of several different parcels, each with their own tax identification number and ownership. They were purchased by the same owner in the late 1970's and early 1980's. (WSL Financial Corporation). The site was developed as a vviiole as "Heatherwood Phase II" in 1984. ', s project was reviewed and permitted on its own, separate from the "Heatherwood Phase I" project site. In fact, the two sites did not propose, nor were they required to provide, interconnectivity. The legal description for Heatherwood II submitted with the permit application to the County in 1984 removed the individual parcels and described the entire property with a meets and bounds description. Although it is unclear if the owner requested a consolidation of parcels, or whether the county initiated it, this could be construed as a consolidation of parcels due to the permitting process and the various building codes in effect at that time. It is interesting to note that if the original parcel lines were still existing today, several (up to seven) structures would be located directly on the parcel boundary lines. The combined parcel of Heatherwood Phase II was sold in 1985 to Hutton Real American Properties. Combined Site The two sites (Heatherwood Phase 1/Saybrook and Heatherwood Phase II/Pheasant Run) became under common ownership by "Hutton" in 1985. Title transfer between 1985 and 1998 is unclear as to ownership, however, since 1998 the properties have gone through numerous transfers, each time referring to the individual parcels based on their original project names of "Heatherwood I" and "Heatherwood II", including the most current warranty deed (April 2005). Conclusions While the two sites may have been under common ownership and management, and while it is specifically unknown why the parcel numbers were consolidated, the two sites have clearly been bought and sold as separate parcels of real land. Consequently, Public Works agrees with the applicant that the Saybrook/Heatherwood I project (Parcels. A and B) and the Pheasant Run/Heatherwood II project (Parcels C through K) are located on separate parcels of real property. We agree that Saybrook/Heatherwood I (Parcels A and B) and Pheasant Run/Heatherwood II (Parcels C through K) could be given their own separate and individual tax identification numbers, consequently segregating from the overall aggregated parcel. We agree that a formal subdivision process is not needed to create the Saybrook condominiums or to sell the Pheasant Run apartments. We recommend that the Heatherwood II / Pheasant Run site undergo the City's formal "Lot Line Elimination" process, effectively consolidating parcels C through K into one parcel of real property. This process would memorialize and consolidate the lots into one aggregated lot, so this process is not questioned in the future. .41k CITY 40"::tSp OF Federal Way AUG 1 3 2007 01` Y 01 F:E0E8Ai VVAy 40LDING DZp-t MASTER LAl D USE APPLICATION DEPARTMENT OF COMMUNITY DEVELOPMENT SERVICES 33325 8`h Avenue South PO Box 9718 Federal Way WA 98063-9718 253-835-2607;Fax 253-835-2609 www. ci tyoffedera 1 way, corn APPLICATION NO(S) o 71 ! L4`U 7— oz� 14 Z�s Date v Project Name o Property Address/Location 1 'i �-Li o Parcel Number(s) 1, F0 — M90 q o Project Description s1y0 iuyrly ►Wz�1-&) � t,2k tAo '�) PLEASE PRINT Ij v) Y' � � � l-f✓4� ©b — l Ty a of Permit Required �% bier A d ft, h i" Binding Site Plan Boundary Line Adjustment Comp Plan/Rezone Land Surface Modification Lot Line Elimination Preapplication Conference Process I (Director=s Approval) Process II (Site Plan Review) Process III (Project Approval) Process IV (Hearing Examiner's Decision) Process V (Quasi -Judicial Rezone) Process VI SEPA w/Project SEPA Only Shoreline: Variance/Conditional Use Short Subdivision Subdivision Variance: Commercial/Residential Required Information �1-3100 Zoning Designation r— Comprehensive Plan Designation � A Value of Existing Improvements IV Value of Proposed Improvements International Building Code (IBC): Occupancy Type Construction Type Applicant 0e f_tCCZxAn Sa! � fl1 v2 � 5 161 Address: City/State: 1 Zip: Phone: _ },V6 Fax: Email: 7V6 . 6;Ny- tigy l J vh c..ea 4P !/fOwi17fl Signature: Agent (iffifferent than Applicant) Name: f!U yy3Q Address: City/State: Zip: Phone: Fax: Email: Signature: Owner � �,,,�j t✓Ir�uwlk Name: VA41 f),,, c a ieJ Address: l-2$'5- City/State: 5&Oq Dte9p G�{ Zip: C't-y, l 10 Phone: 61c1 .?,q,6 - X )'0 Fax: 611 - Y" ' 7777 Email: Signature: Bulletin #003 —August 18, 2004 Page 1 of 1 k:\Handouts\Master Land Use Application KANTOR TAYLOR McCARTHY P.C. ATTORNEYS Hand Delivered File Number: 0000521.1 RECEIVED BY COMMUNITY DEVELOPMENT DEPARTMENT September 5, 2007 btr u a Z007 Deb Barker Joseph P. McCarthy Associate Planner jmccarthy@housinglaw.com City of Federal Way 33325 8 h Avenue South Federal Way, WA 98063-9718 RE: Saybrook Condominiums and Pheasant Run Apartments Dear Ms. Barker: I am writing to provide you with supplemental information regarding the creation of the property parcels for the Saybrook Condominiums and the Pheasant Run Apartments. I apologize for the size of this package but I have provided two copies of each document, as you requested. When we met on August 13th, you requested that I provide you with copies of certain additional documents. I have included the following documents per your request: Exhibit A: Recorded Condominium Declaration for Saybrook. Exhibit B: Recorded Condominium Survey Map and Plans for Saybrook Exhibit C: Copy of the form of title report received by the buyers of units at Saybrook. Exhibit D: Copy of the title commitment received by my client at the time it was purchasing the Pheasant Run Apartments in 2004. Exhibit E: Copy of the 1983 sewer easement from Earl Tedrick (former owner of part of the Pheasant Run property) to the Des Moines Sewer District. This is the sewer easement across Pheasant Run that is used by the Sewer District for the benefit of Saybrook. 1501 Fourth Avenue, Suite 1610 0 7_ 1 04 4 g 3 Seattle, WA 98101-1662 ESUBMITTE❑ Phone 206.625.9898 Facsimile 206.625.9951 SEP 0 7 2007 CITY OF FEDERA€. WAY BUILDING KEPT. September 5, 2007 Page 2 After we met on August 131h, I did some further research in the King County records on the building permits and property tax accounts for these properties. As you will recall, the Saybrook property consists of parcels A and B. Parcel A was created by deed to James Tedrick in 1951. Parcel B was created by deed to Elson Kendall in 1965, but was reduced in size in 1968 when part of it was condemned by the Federal Way School District. In 1983, James Tedrick acquired Parcel B as well. James then sold parcels A and B to J.B. Wright Corporation, which constructed the 60-unit project that is today Saybrook. I have attached as Exhibit F, copies of the real estate excise tax affidavit from August of 1983 when James Tedrick sold parcels A & B to J.B. Wright Corporation. They show the legal descriptions for the parcels and they show that tax account numbers for those parcels were 720480-0064 and 720480- 0005. Exhibit F also includes copies of the real estate tax affidavit from 1985 when J.B. Wright sold the completed project on parcels A & B to Hutton/Real American Properties. The legal description is the same but the tax account number has been consolidated to 720480-0005. I have attached as Exhibit G, copies of various documents from King County's building permit file for the construction of the existing 60-unit project on parcels A & B. The project was given file number C83-4913. I have included the Environmental Checklist and Fire Marshal's Plan Review. I have also included copies of the Water Plan, Sanitary Sewer Plan and Architectural Site Plan. All of these documents show that the project was 60 units located on parcels A & B. Ironically, the documents also indicate that the project was intended to be a condominium project. I have attached as Exhibit H copies of various real estate excise tax affidavits from 1984 to the present pertaining to the nine Pheasant Run parcels (Parcels C through K). In March of 1984, Westwood S&L acquired a portion of the Pheasant Run parcels from Earl and Delores Tedrick. In June of 1984, it acquired another parcel from the Star Lake Road Partnership. There were seven property tax account numbers for those parcels. I do not have these deeds for the other two parcels yet I have attached the 1984 REET affidavit from Westwood to WSL, a wholly owned subsidiary. I have also attached in the 1985 REET affidavit from WSL to Hutton/Real American Properties, which included nine parcels and nine property tax account numbers. These tax account numbers are all different from the accounts for parcels A & B. This shows that parcels A & B were separate and distinct from parcels C through K. I have attached as Exhibit I, copies of various documents from King County's building permit file for the project on parcels C through K. The project was given file number C84-5789. I have included the Application for Permit showing the nine tax parcel numbers that are different than the number for parcels A & B. I have also included a copy of the legal description for the project and an assessor's map showing the parcels included in the legal description. The description and map show that parcels A & B were not part of the property. You can follow the legal description on the 2004 ALTA survey that I previously submitted to you. There are some minor discrepencies in metes and bounds but the land described is parcels C through K. Finally, I have included copies of the Storm/Grading Plan, Horizontal Control Plan and T.E.S.C. Plan, all of which show that this proje flEO .s� Parcels A & B. SEP 0 7 2007 0 7 -104 4 g 3 CITY OF FEDERAL WAY BUILDING DEPT. I September 5, 2007 Page 3 In summary, these documents confirm that Parcels A & B were created as separate legal parcels by deed. Prior to 1969, the State Subdivision Act only applied to subdivisions of of five lots or more. See, e.g., City of Seattle v Crispin, 149 Wn.2d 896, 898, 71 P.3d 208 (2003). The creation of these lots by deed was valid. The documents also show that Parcels A & B were held by different owners than Parcels C through K, and had separate tax account numbers until all the properties came into common ownership in 1985 and that the Parcels A & B were not consolidated with Parcels C through K as part of the building permit process. They also show that the 60-unit project situated on Parcels A & B was separately permitted as a stand-alone project. The project is the same today as it was when it was permitted. If you have any questions about these documents, please give me a call. Very truly yours, KANTOR TAYLOR McCARTHY P.C. Am enc cc Tom Sayer Manoj Chawla David Lawson 07-104483 RESUBMITTED SEP 0 7 2007 CITY OF FEDERAL WAY BUILDING DEPT. A FIER RECORDING RETURN TO: -jos4ij P. MCQ.ARTfjY.. 20061116000492 ..!'K&NT0K'rAYL0f64CCARTHY PC . .......... c14rCAG0 TITLE OCON 104.00 PAGROI OF 072 1561 FOURT-HAVENUR, SUITE 16 10:05 sHjN&oN 9&10-t-�166Z.... KING COUNTY, WA SEATTLE wA CODOMI-NIUM I)ECLARATION wit YAA06K,ACONDQ INIUM' Grantor: Pacifica gaybmoktLC Granteo- Saybrook, a Condopi.0urn" ...... Chicago Title Insurance Compdny�Trustee) MMrcvi4w L�ga d I 1pescription: Pta N V2, Sec. 33 T22N R4E WM,. Assess6r S F14rCeI,-No*-,—,-- 720480-M4-08 NOTICE TO RECORDER'S OFFICE AT THE TIME OF RVC0161NG ' PLEASP. INSERT IN SECTION 1.7 OF ARTICLE I THE CROSS REFERENCE 15ATA p6a" THE MAP AND PLANS, AS REQUEED By RCW CHAPTER 64.34. PFIPAkiiV NT OF ASSESSMENTS Examined ana-apprqved this ^ day of .2006 J ASSESSOR-.. DEPUTY A§sps.s 7 ''101 .4-4 8ti 11E-Su.,841 D f CITY OF FEbLRAQWXY, BUILDING DEPT, TABLE OF CONTENTS pale i. CONSTRUCTION AND VALIDITY OF DECLARATION ................................................ I t f. i Yurpose -*�,.,, ............ ........... 4'.... . ..... ............. 4 ............................... 4.4 ....... ............. A 2' Construction....... ......... ............... ve 1.3 Qd' nant ?,u#n ft With .................................................................. '.4 Severa'bi ity ............. ..................... 4 ............................... ........... .............. .........................................................1 1.6increase .iT Li its ..... 44 ............ ............................ ". Inflationary: " in asein Doll 4 .......... 4 ........... - . 1.7 Reference. Suiey Map and:P.Ws................. ........................ ....... ............ 2. DEFINITIONS.,:. .... ......... ........................ ...................................... ......... 2.1 Words Defined.,,-, ...... .......... ........... .......4.................. ......... 2 2.2 Statutory Definik-ions ......... ...... .......... ...... i........................................4............6 3. NAME OF CONDOMINIUM ................... .............. 4. DESCRIPTION OF LAND AN6.13M'DINGS.................. ..... .......... ........... 7 4i'1 -Description of Property ........ ..... . .... ........ ........ 7 A.2 boscription of Buildings ........... ........ ........ `43 Development in Phases .................................... .............. .................... .......... 7 Of UNITS ........ .7 54 ............. D9k1Uyr1!0N .................................................. 5A Nuti ber and Identification of Units ....... ........................ , .... ...... ............... UffltBwpdaries ................ ........ 4 ................ I ....... ....... ...... .......... G. :,AU-OqATED INTERESTS —. ............ ........................... ............... ...... ......................8 6.1 Allocaf6d.inter6sts.. ................................. .......... ..................................... 8 62 !Coininori-,Own'ers.bigltite.r.est ... ............ 4 ............................................. 4 ...................... 6.3 :Com. Mqji Expiense Liability..................4 ............................ .......... 4 ......... 4_ ............ 6.4 Voting lnterE&t ....... ....... ............ ........................ ....................................... 7. COMMON E;�SMENTS: .................... " ............. ........... ......................................... ........... 7.1 Description ',.� ... .............. ....................................................... ...... 8 7.2 Use of Cornmqn ........ ....... ............................................ 9 r' C � mOn �Jer�m C ................ 4 ............................. 9 7.3 Conveyance o Rn.g4nibrawe of Qrn 0,. 8. LIMITED COMMON ELEMENTS .............. .. ........... t ........... ...................9. 8.1 Description ................ 4 ........ ............ 44 ............... ......4.......4.............9 8.2 Reallocation or Incorporation 6f,-Cgm ....... 4 ............ 8.3 Reallocation Between Units..... ............ .................... ............. ............................ 844 Use of Common Elements ............................... ................. ................... ........... 8.5 Parking Spaces and Storage Assignment....... ... .......... . . .......... 10 ............. ...... 8.6 Rental of Parking Spaces and Storage Areas ................ .......... 9. EASEMENTS ..................... ................. 4_ ............ 4.— ................. -10 9.1 In General .................. 4 ........... 44 ................................... ........... 1-0 9.2 Utility Easements ........ .............. ......... 4 ................................. CONDOMINIUM DECLARATION - SAY13ROOK E�' -PAGA- r. 9.3 Easements Specifically Reserved by the Declarant ............................................... 9.4 Duration ...... .......... ........... .................. 4 ................................................ PedestrianEascg2en ............ 4- .......................................... 4 ..................................... 11 --USE RESTRICTIONS ................................................................................ .................... 11 .1:0. ... 4 k, Xel, P&Wit'jW Uses; Timesharing Prohibited ....................... 4 ................................ 4.4 ...... I 1 "10 2, Use of Paiking Spikes'and storage Areas .......... 4 ................................. 4 .................. 12 103 Driveways;; Wklkway s,..-Etc ................ ...... 4.4 ................ 4 ............................... ....... 12 - Leasesand Rentals.�_..... ............ ;n ............... 4 .............. 4 .................... 4 .......... 4 ............. 12 j0.5 Effect on -.Ins'urance ......... ....... ................................................... ........... 13 ............ 4 ......................... I ................ 13 10.7".. .................................................. .. Pets- ......... 4 ...... ........ 14 :IntNi`ive 14 10.8 s Act ivity ................................................... ............... 4 ......................... 1049 .. Trash and Garbage...........:....... ........................ ........... - ....... 4 ...... . ..... 4 ............. 14 10.10 Use of hildings.- ...... ............................................14 10.11 Noise Control-...! ....... ................. ..............................4.4.......14 10.12 Hazardous Substances...,; ...... ....... ....... ........... 4 ........................ 15 10.13 Installation of Antennae ................. ..... ....... ........... __ ................... 4 ..... 15 10.14 Conveyance by Owners;-.NOiice Required...... .... ........4................. 15 10. 1�5 .. L. Acquisition of Multiple Units............. ....... IF ............. ......... :_....lb 11. MAINTENANCE AND MODIFICATION OF 1 NII-S AND COMMbN ELEMENTS ................................................................ ........................... ...... ....... .16 I tj Uni�Maintenance ......................4.4.................. ...... ...... .... . ..........16 1 L2 Mo!d Prevention ............. 4 .......... . .......................... ........ M1 .............16 YI.3 ................ Co mon Element Maintenance .............................. ..... ............16 11.4 APpevance,of Limited Common Elements ....... ........... ............ ................. I Maintenance of Limited Common Elements- .................... ....... ....... .............. '1 1.6 -Eixterior. Appearance .... 4 ................... 4 ....................................... ....................... 11.7 Construction Work - Common Elements ............. 4_ ................................ 41 ............ Js 1-tt Dec�araqt:-Inspecti6ns - ........ 44 ...... 4 ...................... 4.4.4 ......... 4 ...................................... 18 12. SPECIAL DECLARANT RIGHTS AND DEVELOPMENT RIGHTS ..............................19 12.1 S11'elpiat WiranVRight8--_.,'-... ......... 19 1242 Terir ffiaiion:'_4 Special Declatarit-Aigh&,...... .............. ......................................... 19 12.3 Transfer of SpecW--lJqvclopfneAt Rights.. ...... ........ 4 ................................... I .......... 19 12.4 ........................................ Development Rights......... 19 12.5 Exercise of Developrfient-Rights ...... ...... ..........................................23 12.6 Different Parcels; Different T[meg' ..................... . ......4.4......................23 12.7 ............. Termination of Development Rights,-._,..* ............. ; ............... .................... ........ 23 12.8 Liability for Damage.I........... ..... ...... :'r . ....... ....... ...... 23 13+ OWNERS ASSOCIATION .......... 4 ................ ...... ...... ......... ........................23 13.1 Form of Association ..................4....................4 .......... ........ ... ....... 13.2 Bylaws ............... 4 ........................... 4 ...................... ; . ..... ........... ........ ........ .. ....... 2.3 13.3 Qualifications for Membership ............... ................ 13.4 Transfer of Membership ....................... 4 .................... ............ 24 13.5 voting ........ ........... ...... . ........................ ........................... ............... 13.6 Powers of Association ........ ............................ ............. ...... 13.7 . ... Financial Statements and Records ......... ...... ....... . ..................... ...... ... :25 CONDOMINiut,i DECLARATION-ISAYBROOK RAGE i 13.8 Inspection of Condominium Documents, Books and Records................................25 13.9 Attend Association Meetings.. ................................. ......25 1.3:14 Delegation of Power to Subassociation...................................................••..............25 ..pECLARANT CONTROL PERIOD...................................................................................26 Dcelifant Control Until Transition Date..............................................•.................. :14.2 Transition:Date..::::::.............................................................................................26 14.3 ,= Deolaranfi,Transfer of Association Control............................................................26 ] .4•` Audit --'of Records UponTrps%r,....................................................4.......................2$ =:. 1.44.5` Terminatiorn -pf Contracts and Lceses Made by the Declarant.................................28 15. THE.BOARD QF ]1IRECTb� S .....:.:.................................................................25 15.1 .Selnciion if the Board and Offi&rs......... .............................................4..................29 15.2 Powers of the hoard" .... ...... .............. ................... ................................ ......... 28 15.3 Managing Agent- ... ...... .... . :.._............... .............. 4..................... 29 15A Exclusive Right to Corttract... ......................... ..........................4......29 I5.5 Authorization ofBomd of-birvctors.. ..,;............................................................3U 15.6 Limitations on Board Authority.................. .,,...,r:...........................................30 15.7 Indemnification............. ................ s ... ............................3D 15.8 Entry for Repairs or�Maintenarice... ,.........••• ...... ....... .................... ••••.30 15.9 . Lawsuits or Arbitration Proceedings.......:._...;:......r::....:::.....,,.......::........................ 31 f5.10 Notice and Opportunity To Be 146ard......................... :.............. ....... 32 16. BUDGET AND ASSESSMENTS ......................... 33 16.61 :Fiscal Year........................................................... ....... ... ............33 1;t;.2 :Preparation of Budget ........................................... ... .. ... ..............33 :16.3 Ratification of Budget .............................. ,....... ............... ...................33 16.4: .... .. Suppl6i enkkl.Budget........................................................... ....:.... ......33 Assessments for Common Expenses ............ ............................... :........................... ....33 16.6 Specialty Allocated Expenses ................................................ ........... ....................... 34 16,7- Speci&1 A; sesstnents :..........................................................................................34 I6.8 Creation,6f Reserves; Assessments.........................................................................34 16.9 16.10 Notice-rif Assessments:................ ..................................... 7...................... ..... 34 Payment ol"Monthly AssesSrnerits:... .......... ............... ............ .............................. .35 16.11 Pr&oeds' Belong 6 Assocktign ............. .............................................................35 16.12 Failure To Assess,,..0......................... ....................................................... ..... 35 16.13 Certificate of'Unpaidiasessmedts...............................................35 16.14 Recalculation of Assessments ............................................................35 16.15 Initial Contribution to W�}rkin C ital::.... ...... ::........:::........................ :............. ..35 & aP IT LIEN AND COLLECTION OF ASSES,NMENTS1.......:....::.......::.......::...............4........7.....35 17.1 Assessments Are a Lien; Priority .............................. ...... .......................... - ......... 35 17.2 Lien May Be Foreclosed; Judicial: Foriclostrre..;:......;......:......:.....::.............4.........36 17.3 Nonjudicial Foreclosure .. - .................:...r ... .. .. 36 17.4 Receiver During Foreclosure ........................ ............. ... 36 17.5 ,...,... ...... Assessments Are Personal Obligations ...............,:.....:... ... ...37 17.6 Extinguishment of Lien and Personal Liability......:37 17.7 Joint and Several Liability ............................ ...................:;............... ...t::37 178 Late Charges and Interest on Delinquent Assessments .......... :............. . ....,:......::...37 17.9 Recovery of Attorneys' Fees and Costs ........................................ .. .. .....3}1 CoNDOMMUN DECLARATION SAYBROOK PACT£-ili` � / � � . 17.10 8eomjh/lJcpno�—..--'_'......---~~~.~~'~_-.~~.~~~.--,.--_-----. �7 {?,il Remedies Cumulative .............................................................................................. 38 OF GOVERNING DOCUMENTS ............................. ---_.......................... 98 19. :;2 1.1 Defin�tiew Damage, Substantial Damage, Repair, Emergpno W 45 22.6 Reconstruction and 24. AMENDMENT OF DECLARATION, SURVEY MAP AND PLAS, ^ / `.`/ '.` ' 34� Consent Rcuubx�d..,..---..'~~..'^.^~~^....~..^~.---~....,.—.---~. --�O Limitations Aonmodo�mn�� .5l �4� �un on .-._—..~~—~~'~~._...---.~.~.—~'~~..--- 51 INATION OF CONDOMINIUM .,.,,,^ ,,~~,,__._~,___~,~~''--~.—'.. `*� Action ..~~___.,~~,~~~~,~~,,___~___~,,~~~,,_,.,____ .�l "�'l `� ' ' 5l p^^C°~~~^^�^'~`^^^~~�Governs ----'----------' _52 ' ^6. `.` ^~�" - ' . � CONDOMINIUM DECLARATION SAYBROOK, A CONDOMINIUM ARTICLE I CONSTRUCTION AND VALIDITY OF DECLARATION Secure Declarant has recorded this Declaration for the purpose of creating a 0ndoWni� nl"of the reat-property desctibed in Schedule A under the Condominium Act. Section I '2 C structi!jii._ The"'Declaration and the Condominium Act provide the on franie:IWA -by xrhich_ the' '06ndorniru'uFrcls cre4ied,,and operated. In the event a provision of the Declaration As ideolisistont with. - a- w6visiorvbf t9e Condominium Act, the Condominium Act shall prevail. In the evenp'''of 0 conflict-,betwecO a'Orq -�ision of this Declaration and the Bylaws, the Declaration shall -prevail except t to t.he extent fh&:Declaration is inconsistent with the Condominium Act. The creation of the Cofidoni.inium. shall nQt' be impaired and title to a Unit and its Common Ownership Interest shall-, - not be"rendered;.. unmarkeimble-,or otheru ft. affected by reason of an insignificant failure of this Decliratio n- or'the _Survey Ma;5"and Plus #r any amendment thereto to comply with the Condominium Act. Section 1.3 Covenant Runhini Imth Land. Tl is.becl gration.-shall operate as covenants running with the an land, or equitable servitudes, d shallbind De . clarA"nt,,:1f's successors and Msigns, and all subseq4ent-;Qwners of the Property, together with their gi-4fttees -sqcmsor�, heirso executors, administrators, devisees or assigns. Sectiork 1.4 Severabili!l The provisions of fhi,�'Detlarafiion shall! 61ndependent and severable,.Arid the un ' 6,nforceability of any one provision shall not iffeck,tkftenfbaceability of any other " ision if thi remai ning .4ining provision or provisions comply with thetQ;Xdp_Mini6T Act..- Secflon IS, Percentage of Owners or Mortgagees. For purposes of determining the pqrcenta& of owners or. Mortgagees, or percentage of voting power for apppving a proposed dedision or course' of adbo4 in cases where an Owner owns, or a Mortgagee holds Mortgages on more than ohe,Vnt such ijwnqr shall lie eeitted a separate Owner for each such Unit so owned and such Mortgagee shall be doemul a separate Mortgagee for each such first Mortgage so held. Section 1. . 6 Indationary. In breitse ire h Dollar Limits. Any dollar amounts specified in this Declaration in connect y proposed,,.actic6 or-idecision of the Board or Association shall be increased proportionately by. the iderease,jil t# e c4nsuiiier price index for the City of Seattle, Washington for All Urban Cob§umers prepared by'i6.United States Department of Labor over the base Index for January l -otth6 cafendar yeAi following the year in which the Declaration was recorded, to adjust for any deflation in the" valuip-,of'the. dolfar. In the event. the Index is discontinued, the Board shall select a comparable index for this.purpo se.:` Section 1.7 Reference to Survey Ma pare Plans. The Survey Map and.Plans were filed with the Recorder of King County, Washington, simttlfane6usly--�with"tiie.-recordifili of this- Declaration under File No. LW04, 111600A_q�1 , in Volurii6'22� of 6nd6rdiniums, PagesQ) through 0-2-1 . This Declaration shall be effective as of the first: date--ihat"it., and,.the.-Surv+�y Map and Plans are recorded. CONDOMINI um DECLARAnON —SAYBROOK A PAGE -,I'- ARTICLE 2 DEFINITIONS Section 2.1 Words Defined. For the purposes of this Declaration and any amendments hereto," the foilowing definitions shall apply. The singular form of words includes the plural and the plurd'iholudes�'the singular. Masculine, feminine and neutral pronouns are used interchangeably. (Additional Property" ipe0g-*4e, real property described in Schedule D to this Declaration, a� it may be�amenqed; froniti= tb time.: .M.Miate of. the.: Owner" eau.� any ,Person, other than the Declarant, who controls, is controlled 6y, otisvinda common _cQrttrol with t.,�e'Qnit Owner. A person controls an Owner if the Person: (a) N, a genei4f parmer,.,_Offior, dir6qt&,: employer or tenant in common of the Owner; (b) directly or indkectlrbr acting. -in concert withvne'or more other Persons, or through one or more subsidiaries, owns, con"Is, h6lds wiih ppV?eViio yb:te, or holds proxies representing more than twenty percent (20%) of the voting it teresf in the 0,0ner;: (c) controls in any iran ner the election of a majority of the directors of the Owftek; or.(d) hag' co6tribu': ted more than twenty O- ent (20%) of the capital of TC the Owner. A person is controlled by an. Owner it the ' Owne&, (i) isd;oneral partner, officer director or employer of the Person; (ii}'diKe�ctlj orJn4y or .acdfrectJ "' ':gJ' ,kn n concert with one or more other Persons, or through one or more subsidiaries,: owns, controls,., -hold§ with-, r to vote, or holds proxies representing more than twenty per&nt 420%) of the voting jhterps' t in Person, (Ji1) controls in any.directors -of Elie Person-',, or,.(iy) hos contAbutied. more the election of a majority of the=...d rector&,. than twenty per6Ont (20%) of the capital of the Person. r "Alt ted Interests" means the Common WmershipInterem the Common Expense Liability arid the Voting Interest allocated to each of the Units in the, Qohdorpinlum. The formulas used to dotermine the Allocated Interests are set forth in Article 6.",.The actual_.Allbcated Interests are t seto I* Schedul� B. . rth"n :.'!Articles" means Articles of Incorporation for the Association. r. "Assessn.ientsr Wans:'all.,sumchargeable by the Association against a Unit, including, without ldri`itatioir (i) gejferal-'.:akid speci4assessments. for Common Expenses; (b) charges and fines imposed by the ksso6adon;14), interest and late, charges on any delinquent account; and (d) costs of collection, includ)kig reasonable attii n 0's' jees-, Incurred by the Association in connection with the collection of a deliniqueqpt-.6whees account; "Association" means1he owne'isj association :identified :in Article 13. "Authorized Users" mea ns ageri - ts, servants,- tenants, "family members, invitees, and licensees of an Owner who are accorded rights, dftictly�or.jfidir=ly by that- Owner to use or access all or a portion of that Owner's Unit and its appurtenant i.riterdst iri the Common Elements. "Board" means the board of directors rjf the Associafion.- asiles4ibedllh, Article 15, the Articles and the Bylaws. "Books and Records of the AssocAatioW' means all d6cgyn en�s in the possession & control 9 _1 the Association, including, without limitation, the following. CONDOMINIUM DECLARATION -SAYBROOK PAGE -2- (a) Declaration, Survey Map and Plans, Articles, Bylaws and other rules and regulations governing the Condominium or any part thereof, and all amendments thereto; (b) Minute books, including all minutes, of all Owner, Board, Officer, committee ti� ---gr other meetings relating to the Condominium or any part thereof, including meetings .* all.' repor6, communications or written instruments attached th re or referenced therein; All "financiA0,06rds, ific;uding without limitation, canceled checks, bank 49tato ents,,ipd finas&!�i sta einents of the Association and source documents in tern frQ.fti the: timeof inco.,rpqrAtion of the Association through the current date; (d) All reports,docuin6nts, communications or written instruments pertaining to �Ihe,oersoijil prOpeny ofthe.Association or C6ndominiitm or any part thereof or' -;'the t6onatructibn, :'rerhodeling,'---jmaintqnance, repair, replacement or conditio-10 of Ae 0,'ondominiuT;-On.any:part.th6i,6of; (e) All insurance pM.iqfes,-6r copies ther6of for die Association or Condominium . - 11. or any part thereof; Copies of any certificab�s qf t4t -atwx,loe 6en issu.6d for the ..pecupancy Condominium or any part thereof;.:' (g) Any other permits or notices by gover.nm6nt-at, bodfes.."applicable to the Condominium or any part thereof in force 0 ir issued; All Witten warranties that are still in effect for th&-C:ojad,ominiurn or any part thereof; or any other areas or facilities that the - As 'sociation has the responsibility for maintaining, from the Declarant, contractor, subcontractors, ...... suppliprs,, manufacturers, together with all owners' manuals or instructions furnished with respect to installed equipment or building systems; Ajbsier o-f Owhers, offic4s and Directors and Eligible Mortgagees and their hddressea and teleohqpe nr rnbeM, if known. Any feases of'the Common ,-EleRients:'o-r- areas and other leases to which the Associftio..q.,is"it pirty;--"any,,emplbyni'ent;.�rvice, consultation, professional or other contracts in whiqk, the -:As,96ciafi'o'n, Bb,ard or officer is one of the contracting parties, or in which�'the-`. As.socia66�'-or the Owners have an obligation or a resp'on6bility, ditectly or Indi=!ly, to: pay some or all of the fee or charge, or which in --any Way-rel.4te t6 theCQndomiaium or any part thereof, (k) All reports, documents, communicati'o.ns...6r Writt0iinstruffigits pertiiding to any litigation or other legal or mediAlionOrbitiation 'proceeding:'(wh6thdr. pending, threatened, or under consideration).. L6 Which the Asiq6ation (or ' T aNe Board, officer or Owner) is or may be a party, or which tray relate"'to Q'i".' ct the Condominium or any part thereof, and CONDOMINIUM DECLARATION - SAYBROOK PAGE-3- X (1) All other reports, documents, communications or written instruments in any way relating to or affecting the Association, Board, officers, Owners or the Condominium or any part thereof. B uildine 11' nclosure" means the building enclosure as defined in RCW 64 Chapter 55. .."Bylitmis" means the bylaws o the Association as they may from time to time be amended. !NmmQh E16ments' means all PoTtious of the Condominium other than Units. The term incltides.ihe,Lim.ited.-16omkn6-ft, Elemept,&Z, "Common Expenses" enses" meani,expenditur&.3 made by or financial liabilities of the Association, including expehse&4�IaLeA to.,the miintenake',_repair and replacement of the Common Elements, allocations to reserves, acid eipensei relaied.0 any utility services provided by or billed through the Association to the Unit - Saute amec,ominon Expensesare alloca. -:to the Units according to the Common Expense Liability of tho"UniV, Otl*r Qoru m"on Expenses are Spocially Allocated Expenses. "Common Expense Liabflity" means the: liabiJity f6t common Expenses (other than Specially Allocated Expenses) allocated: to eaelf Uni-t as descr'ibt,-d in., Vommon Ownership Interest" means the uifidivkfid pwnemh st in the ,Common Element$ a] locak,to each Unit, as described in Artiq!e,O-- IpAnter� ' e6n, nu-nium" means the condominium created�tmo�r this PoUlkation' and the Map and Plans. "Condomipium Act" means the Washington Condominium A6i',.codified as kCW 64.34, as it i,riay be. from' time. to i-miie "ConveyaIqce"-!nq4ns �ny transfer of the ownership of a Unit, including a transfer by deed or by real estate- cofitraq# and., with Msp&XI9 a Unit in a leasehold condominium, a transfer by lease or assignment thereof..Co i-eyan' o'does not,, mean a transfer solely as security for a debt or other obligation. "Declaranerfic9th"s Flicif%ca Saybribole"LLC, and -its successors, and assigns. "Declarant Contror'-rneans tliecrigfit of the lbecl4rant'OrTersons designated by the Declarant to appoint and remove officers VA�q.,Assqciatfon and mimb6rsof. the Board, or to veto or approve a proposed action of the Board or Associati6n, p�p4�nt to'Article'1`4. "Declaration" means this Condominiuni'Declarafion -a's itinayfrom time to time be amended. "Development Right" means any right exioregsly 4-eserved -by Qecla�rwW'm Article 12 to: (a) add real property or improvements to the Condominium; (4,� cceate,.UnitS:Common Elements or Limited Common Elements (including parking spaces and.storage areas] *ijhin_'tfte C61 property included or subsequently added to the Condominium; (c) silbdivide Units of ivert Units into., Common Elements; (d) withdraw real property from the Condomi.qiufn;:or (o) redflocat e LimitedCommon Elements (including parking spaces and storage areas) with respect t6Ijhits"tIrAt have, -Pot been conveyed by the Declarant. CONDOMINIUM DECLARATION-SAYBROOK PXGE 44 "Eligible Mortgagee" means a Mortgagee who has filed with the secretary of the Association a, wfitt6n request that it be given copies of notices of any action by the Association that requires the 'tolisent-pf'Mortgagees. The request must state the name and address of the Eligible Mortgagee and the Identifying Number or address of the Unit on which it holds (or insures or guarantees) a Mortgage. J, �Mc THmean-. the Federal Home Loan Mortgage Corporation. V164 Are' :rneahs t' approx imate square footage of each Unit as set forth in Schedule B. ift The Floor Area is approxiffia(e and Inay i1or'match the interior area of a Unit when measured by the own"er, Association _.or others;: Floor,'Areg may nor- imatch the dimensions shown in the Survey Map and Plans architectural ,.plans or may, kiA, ing Wt6rik Aoor Area is not subject to re -measurement and the Floor Areas set foo, inAche4ule:3 are final and.66nclusive. "Fannie Mae'r6ean&.Fannie_ Maefederally chartered corporation. era "Foreclosure" mdAhs a fbrfe#u re.. Or Judk .id or n6njydiciat fbitclosure of a Mortgage or a , deed in lieu thereof. Lis "Governing Documents!" me-an's . this Declaration, AiticJe`s, ih Bylaws, and any rules or regulations adopted by the Board, as they may � e amended front time to -rime. "HUD"'means the United States Departrnent,of,Kogsing and Urban Dq:velopmer t. "W64fyinj Number" means the number of eacl.Ijqft shown -on -the Sjirvey MAp and Plans and.,iii Schedule B. F'Limiied eomm m'ffibit Elementsallocatedin this gn Element" means a portion of the Co beclaration,-'or b'Y'Q0ration-9f law, for the exclusive use of one or m4e,-bu�'few.& than all of the 1Managing Age C'm0anskhepe. rson designated by the Board under Section 15.3. "Mortg2!ge"'-means.; ortgoge,, deed of Arust or real estate contract. "Mortgagee'l means -Any Jiolder, iMurer orguar-antor of a Mortgage on a Unit. "Notice and Opportunity To Re H"rd mqins the procedure described in Section 15.5. "Owner" or "Unit Owner""' means tho' Declarant Q , r oth& pe , f , wn who owns a Unit, but does not include any Person who (i) has an interest 'iff_-ti : Unit 3.01ely-..es-,secudty.-fbr an obligation, monetary or regulatory, (ii) is the beneficiary of right. . uaotr *epients�andfor covenants granted by an Owner, or (iii) is an Authorized User. "Person" means a natural person, corporkjofi, P.aInes'hip, lim'jt'ed partneic.ship, trust, governmental subdivision or agency, or other legal entity.. "Phase I" means the first phase of the Condominium, consisting- sixty Units, as showOn .......... the Survey Map and Plans. CONDOMINIum DECLARATION -SAYBROOK ?AGE -.5- "Rules and Regulations means rules or regulations governing use of the Condominium that !py..:be'adopted by the Board. "Qualified Warranty" means a 'qualified warranty' as defined in Section 105 of 64 RCW chapter apter h as,.,'it maybe amended from time to time. "Special Declarafit Right'' nid4ns rights reserved for the benefit of the Declarant (including D6veippmentRigh IV in Amkle 12. ........ ... f.,Specially Aftoc4te&)Expegsys',` Tneans,thow Common Expenses described in Section 16.6 of this Declaration. "Subsdquent Phase" sheans--'tbe oreafift, by the Declarant of additional Units, Common Elements, and/or LiTnitedConimon Elements on alf or a portion of the Additional Property. "Subsequent P1111s6 Aznindiu;enV*me,"s,.-6n amendment to thebeclaration recorded by the Declarant creating Units, Con:rnon `Elai:nents' And/or invited CO'MTAon Elements on Additional Property. tbtidoniin!uM.,.Article 2 "Survey Map and Plans" means'iMap and he iurvdy ,,-�lans for"the 1 .. refers to the reiaordhig number of the Survey Map and Plifts, which Werb,mcorded imultafteodsly with 6 �4,arp nis, c on.. Qlrreceions, and this DeArati ",The Survey Map and Plans inclu&5.---�ny rec. rd adden4 thereto. "76nsjflon'Date" means the date upon which the p6riodof Deei�rant. Control terminates as det6rminid in Articli 14. separate ownership, the "011r, means' a physical portion of the Condominium designated f ti sppar�a boundadeg of w1iioh. are described in Section 5.2 and shown on the Survey MaoanoTlans. r. "VA" rn. Veterans -diftistration. Oans4he Y AnsA "VotingInterest" giegns the-proportiopate number of votes in the Association allocated to each Unit, as descrihed ini tide 6. "Withdrawable Property" . rneans:: th6 real` property described in Exhibit E to this Declaration, as it may be amended from. time to tirnel.--, Section 2.2 Statutory . befin`iions Some 6f the terr'n's d4ined above are also defined in the Condominium Act. The definitions in the beclarition: arerno& ,t inte�AJP limit or contradict the definitions in the Condominium Act. If -there'is any iocons. istericy or conflict, the definition in the Condominium Act will prevail. ARTICLE NAME 4'r-ONO0MINIUM The name of the Condominium created by this DeclaiaWn and kfiq�Surfty I�iap an. Plats -is "Saybrook, a Condominium." CONDOMINIUM DECLARATION- SXYBR(X)K ARTICLE 4 DESCRIPTION OF LAND AND BUJLDINGS $eWon 4.1 Description of Proper The real properly included in the Condominium is d�scribed in 9rhedule A. The Additional Property is described in Schedule D. $ecQ6n4X"-Descrh)t:ion of Buildings. There are 6 buildings in Phase I of the CobdoTAinkrin," The locations of ft buildings are shown on the Survey Map and Plans. Seojon 4.3 D'veliopmefit in Phases, Declarant intends to develop the Condominium in two;Qr mare ore . phases.,.-The,ohis.ing plan is,describOd.ip more detail in Section 12.4.2 of the Declaration. Declarant is!, not reejuire�d to,c'ompoto the Subequent Phases to the Condominium. Declarant is not required to add the dd_ itional 1koperty to Condominium and may withdraw some or all of the Additional P from & C6ndorrfi it, Property niuM ifwr is added. ARTICLE .DESCRIPTION OF UNITS Section 5.1 NuMhqEanIdeh4tific'afion &Unitg. The, b-an' contains 60 Units in Phase 1. The location and confiigu'rati6n of each Chit dre.atid by this Declaration are shown on the Survey Map and Plans. Schedule B of"this: De&largAion contains -the.. -follow* information as to each Unit created by this Declaration: 5.1.1 Unit Designation,,,..Iyl-tdetitifyiiig, urp.�er. a each hit created by the Declaration. 5.1.2 Unit Data With respect to 6achVnit+created by His Declaration, its app'roximMe ai6 aW the levels at which the Unit is located, 'Ihe h ' e numbq. of roots designated p,rf=4 as bedrooms aod the number of bathrooms and fireplaces Wi611'e'ach Uhit, 5.1.3 Allocated Interests. With respect to each its allocation of Cbmmon Ownership ;1hterest,'Common Expense Liability and Voting Interest, as described in the Pursuant to Article 2,.,- &larapr,.may'-create additional Units, Common Elements and Limited Common Elements in one, br,'mori'subseqj . jerlt Phases on the Additional Property. If the Declarant creates Units in a SubseqluentPhate, it wiffamiend_.Sche4plle B to show the same data for the Units so created. Section 5.2 Unit ftundaiiesiThe botmd?;,rie. `of qAch_. Unit are the walls, floors and ceilings of the Unit. All lath, furring, plaster, i�xall�bard; plasterboard, paneling, tiles, wallpaper, paint, finished flooring and any other materials constituting any ,part_,6f, the firi sh&d,surfaces thereof are part of the Unit. All other portions of the walls, Ifom'or-i:eilings are part of the Common Elements. Except for Common Elements described in Article7, ali spo'ces,,+t"nter.l*'o"rpartitioiis, And other fixtures and improvements within the boundaries of a Unit areilt part of ft Unit. The.-phy-AGfbbundaries of a Unit constructed in substantial accordance with the SUt:vcy Map:and_.Plada: become its .boundaries rather than the metes and bounds expressed in the Survey Map .,and ..PlaP,.`,, icgardi, e� otsetiting or lateral movement of the building or minor variance between boundaries shbw'n oFf'*;$ur*y: Map arid. .. Plans and those of the building. CONDOMINIUM DECLARATION - SAY13ROOK ARTICLE 6 ALLOCATED INTEREST 'Section 6.1 Allocated Interests. This Declaration allocates certain interests in the -�'Cbndominiurri.lo each Unit in Phase I. Those interests are: a Common Ownership Interest, a Common Exp ense and a Voting Interest. The formulae used for allocating these interests are set forth n this Articles.. r Jicle 6., Tk'41 -liwation of these interests to each Unit can only be changed as provided in this i Deblaraflon,,-' The Allocated Int"6sts ;wd the title to a Unit may not be separated or separately cpnve,od..;ivh6the,rW �untarily,-.& involuntarily, except in conformity with this Declaration. The -Allowe4-jijieresfs' shA'll be &emed:A0 be,cdftveyed with the Unit to which they are allocated even though the descri i in the instrument.;t5f conyleytimpe may refer only to the title to the Unit. When , pt 9n It will re -allocate the Allocated Interests of the and if becla"rant 'rdittesUni�s in C -a. Subsequqh�`Mse, Units as described in A, f-ticlia: 12..:"- Section 6.2 C . ommon GwnetsM6 Interest. The Common Ownership Interest of each Unit is set forth in Schedule B. The f0rm4fa fdc allocating the Corq*p Ownership Interests is the relative Floor Area of each -Unit_ Section 6.3 CommonExpenseLiabilill— The C6mtnon Expense Liability of each Unit is set forth in Schedule B. Except for Spe6iall' Allocated Expenses, �6 fo ttj� for Of& atin Oens'. _g the Common, .Expene Liability of each Unit is the.',relative 1~loo(Are4 of'ft,,Uikits. Specially allocated Expenses are alloc-ated according to Section 16.6. SeOork,6.41 Voting Interest. The Voting Intet�st.of eachwklset.fortfi in Schedule B. the The.form4a foi:.2allod�ting the Units' votes in the Association is eq4ally,am64 0n0s- ARTICLE 7 COMMON ELEMENTS Sig"c tion 14" Description. The Common Elements are all portioni-of:; the Condominium otiier than the. Units. Tfie Conunon Elements include all portions of the walls, floors, or ceilings that are not.a; part of,,, or withir, thp Ur k b6tindaries established by Section 52. The Common Elements also include any chute, flue, duct; wire, conduit, bearing wall, bearing column, or any other fixture that ties partially within and'partiallyotoid4. the.designated -,designated boundaries of a Unit if it serves more than one Unit or any porti6p, Of ..'6qmmoh Elepenit. The Common Elements are generally described as follows: 7.1.1 Land. The land:ddcrib6d in.-Schviauli which the buildings are situated. 7.1.2 !Common Struct6ralTileiinen .:"Thi"founda ' tions, footings, studs, joists, p i beams, supports, walls (excluding only non -bearing interior Aifions ff'ih6.Units), roofs, chimneys and fireplace walls, if any, and all other stfuctilri l p4fts 6f the bujldinpto the -boundaries of the Unit under the Act. 7.1.3 Central Services. The wires, putnos, M'Otqii, faits, 4iicis and all oiber parts or apparatus of any central services or common utility service, :such' as.00wer, light, Aga, h6t aiid'.cold '-. water, heating, air conditioning, incinerators, compactors, *sewer, ...fire cbntrpt systems 'aTfd. communication elements, if any, whether they are located in partitib-ns.,brbtliawise. TIO'Common Elements do not include appliances and equipment serving only a single -unit an get'd within that Unit- CONDOMiNium DECLARATION — SAYBRWK F6,bE 4-, 7.1.4 Landscaped Areas. The yards (except as noted on the Survey Map and Plaus)'--prdens, and landscaped areas which surround the building, and any planters built into or !idikentto-t-be building. 7.1.5 Access Features. Stairways, ground level entrances of the buildings, wal��wayi, ddv�Wayt;, -and drive aisles, which shall provide access to the Units or other Common Elemeqs from,,6 public street. 74.6Refuse Disobigbi. AnY,,4rea shown on the survey map and plans reserved for container's Qi eqpipm 6'nt fOr � . z-fuse ditposdl and g`ny.,�such equipment including dumpsters, compactors and recycling bins.- rnent, Uuipment .71J Ae6s for E16tilill The rooms or areas containing the mechanical, electrical, ladndri and,, then -building. equipment, and any such machinery or equipment itself. 7.1.8 Manageinent Fad ti -.-Any facilities used-INthe general management and operation of the Condominium iricl uJing-'any.-Vait or..aCiea-.Lresi�rved'f6r.on-site management personnel. Any facilities used for the management -of thell C-Ond6miniu , rivr6uch as any management office, building storage areas, or any Units owned by the Association for the use'of of oa-,Mt6`maagpment personnel. Common ec n Use of Common ElLift�e tio '7.2 n1s ;Unit Owners relay not alter any Y� Element or construct or remove anything in or fibm omrnqrfiEfident except..Upoif the prior writteo, con*&nt of the Board. The right to use the Commofi-F-lqinetlts, jacluding the L,irnit6d. Common Elenkrits, -'sliall be;governed by the provisions of the CondomifiluVa-- Act., and the Governing Documents. The Ow. ners have no right, however, to use or occupy. the'Additiorh'aj- Property until it is added ta the Condominium. The Declarant and its Authorized Useri-,sha1T'ha9'e the exclusive right to E;se andoccvy theAddirional Property and improvements thereon until -suo (iihts.,are changed by a --_Subsequent , Pha-+e Amendment.. If any property is withdrawn from the Condcoiniiim the remaining Unit Owners willhaven6 iightio use any portion of the property withdrawn. Section 7.3 gap Once or ,Encumbrance of Common Elements. The portions of the Common FIemeiits that ire n necessary f6r the habitability of a Unit may be conveyed or subjected to security interest by theA&.Assoit the Ovv'6ers of Units to which at least eighty percent of the riot Voting Interests in'the so0iation are allocated, including 8017,o of the votes allocated to Units not owned by Declarant or an affiliate of Declara I ntft . gre�- .. ta.#Iat action. All Owners of Units to which any Limited Common Element is; allocated' must. howe'ver, agree in order to convey that Limited Common Element or subject it-w a security-Inteiest. the,pro�eedt of the sale or financing are an asset of the Association. Any conveyv6e, ¢ncurn'braoce,Judicial e 'or other transfer (voluntary or involuntary) of an individual interest in the Con',frdbn Elemen4.,shall be:-X.oid- unless the. Unit to which that interest is allocated is also transferred'... ARTICLES LIMITF,)D:i-CQLMn�o-N-F"LESO—TS," Section 8.1 Description. Any fireplaces, shutteis a�vni gs, w irdow,,-bqxes,.. doorsteps, stoops, porches, balconies, patios, and all exterior doors and"Madows or.-6ther equipieng-- or.' fixtures designed to serve a single Unit, but which are located outside 'tho`'Unti's'bounAir-I.es,.:-a Lir�fea Common Elements allocated exclusively to that Unit. Any fireplace, thutd; flue dum k'Wfi, corld.wit, bearing wall, bearing column, or any other equipment or fixture that lies paitially within ind liartiNly outside the designated botindaries of a Unit, if it serves only that Unit, is a Liihitpd. Common .-Element CONDOMiNium DECLARATION - SAY13ROOK PAtE -9,' allbcated exclusively to that Unit. The Limited Common Elements also include. (i) any Limited Q;Di fiion Element Yard shown on the Survey Map and Plans, which is allocated exclusively to the, it serves;- and (ii) certain parking spaces and storage areas, as provided in this Article 8. "Section 8.2 Reallocation or Incorporation of Common Elements. Except for the Developkien>t4iglzts of Declarant, no Common Element may be reallocated as a Limited Common Eldmenf, and n6 Common..Element'ortirnited Common Element may be incorporated into an existing ]Unit withatit the approval of Owners o-Units to which 67% of the Voting Interest in the Association, f 0 ner. includirig.'th� ..W of ft Unit -...to*"Mgch the Limited Common Element will be allocated or incorporated. Stich allocation or incorporation. 'Aall be reflected in an amendment to the Declaration and the Survey Map and,--Plaqs. Sectjofi8_3' ftalloation-Beig! H,L-nits. Except in regard to the Development Rights of .1 y Declarant, a Limited Co.irimo-A Element may: -be reallocated between Units only with the approval of W, the Board and by an amendment the �)eclaration executed ed by the . Wners. of the Units to which the Limited Common Element -was iind Mllbe allocated. Thc,.Board--.'shajf approve the request of the Owner or Owners under this *tioo':'wifhin,..iO.�days,z-t5T within auch'other period provided by the Declaration, unless the real locati6n--does notcomply"witli; Xh6 C6ndorniniurn. Act or the Declaration. The failure of the Board to act upon a,reqgesr. within such period shall be- deemed approval thereof. The amendment shall be recorded in the namesof tke..paz�ties and of ..Ehe.c rtdordinium. Aection,8A Use of Limited Camnidn,EleMe .�Eazh,QNyner,,:of a Uiiit to which a Limited Common Element is allocated shall have the exclusive right to use ' tKd"Li - f"nited' Common Elem�ht in, c6mmoi with the other Owners, if any, to � Woj6 that .--n6aied Common: Element is allocated.: TheAght to use the Limited Common Element extends to therbwne?s Authorized Users, but, is goy:eirneeby the provisions of the Condominium Act and the boyqrAlng 150cumet is. me SC66a* C.--,�tates the current Section &43., ParkhIg Spaces and Storag Assign number al:' parking spaces and storage areas in the Condominium, all of wh.iqA are identified by number in the purvey e :'Y Mapand"hans. Except for any parking spaces or storage areas located within a 1 Unit, the4Ddclargnt %011 4iocate ft."pi&i.Tig spaces and storage areas as described in Section 12.4.6 below. Section 8.6- RehW of,lParking "Spacei and Storage A After the Declararit's initial assignment, a Unit b"i . r may rent or leas'& a.. -parking space allocated as a Limited Common Element to that Unit to any other Owner of-Occupaqt of -a Urik in the, Condominium, only if (i) the rental or lease will automatically be void, witho6t notice, if -Ft results: ifv,a violation of the minimum parking requirements for the Condomir iumfinder , zoning.regulati_Ohs;_Sii) "the e rental or lease is subject to termination upon 15 days written notice .:and drill. automatically terminate, without notice, upon the transfer of the Owner's interest in the Unit to which it i$'a Limited Cdfnnion Element; and (iii) the Owner renting or leasing the parking space *or -8i6ragearea notifies -the Board itf.writing, in advance, of the existence of the rental or lease. Rental of parking spaces'or stbragi arias is not -otherwise allowed. No person who rents a parking space or storage area may sutiiease or -ass" -6at ren'm'k to another person. ARTICLE 9 EASEMENTS Section 9.1 In General. In addition to any rights under the Coridominiurh.Act, ea�k%nit has an easement in and through the Common Elements (but not the Limited-Comrno6 Elements) for.. unrestricted ingress and egress to such Unit.Each Unit has an easement in and throu;heach other, Unit ' CONDOMINium DECLARAnoN - SAYBROOK anti the Common Elements for all support elements; for utility, wiring, heat, and service elements; and f6i 'reasonable access thereto, as required to effectuate and continue proper operation of the "!Section 9.2 Utility Easements. The Declarant reserves the right to grant easements to or m6iMpality providing utility services to the Condominium or to the Units for the (i) installatf6n, ' :,Co6struction�maintprkhb6. repair and reconstruction of all utilities serving the qondoininium or the Owrters�iikludipgI without limitation, such, utility services as water, sanitary - sewef,,' stg - rro seWer, electricity, cable`television, Internet access and telecommunications; and (ii) access s. thioqgh the Coinm6n�tement� Wphe util ifyinstallations. Section 9.3 "Easements Snecifically Reserved by the Declarant. The Declarant reserves an access easeine.nt.-.6ver,.-'across, and through the. Common Elements of the Condominium for the purpose of completing construction, .',exhibiting and preparing Units for sale, making repairs required pursuant to any contract,of Ole, cR : schar 'L ging the.'Declarant.'s obligatiOhs,_ or exercising Development Rights or Special Declarihi Rights. 6-The' . Declarant further reserves easements over, across, and 6 through the Common Elements of the.-CoWoirr hir rn fqFlhe bq;nefit-pf;th6 Declarant and its successors and assigns as present and future 6w3ier� of Develc,PT6ent-kiglits, (i) for ingress to and egress over the roadways and parking lots and sidewalks-of.the ondominiuni, (if) to -have.,acpess to and to tie into and use an water, sanitary sewer, storm sewer,"eiedtficky, y gas, telephone, cable, television, or tither utility facilities now - or.L hereafter established in the Cor fdomi �iuik-and (Ho the rit-tq use the mail kiosk, the club ho4se and t�d trash facilities located on such grope -ea"ejUs resery - ed hereby I shall not 90i6si Thi�, be exercised. -.in a 'manner that will overload or materially impaif the use and'en,oyment of the roadways, jai l ways and utilities by Unit Owners or'-,tlje present` acid ftore." owners of the Devdlopment Rights,' This Section 9.3 may not be altered or amen , ded'without the written consent of thebeclaeant...` _.6 Section 9A Duration. The easements granted in Sections 9. 1 ' and- 9.2.ire perpetual and -pin withr-ilhe lafi"d;-" All - ..such_ easements shall, however, terminate W upon tie-- of this Cbttdomin iurrt.-*p'tkM,_'uant'to Article 25 of this Declaration. The easements reserved in Section 9.3 are easenients.1-a grass toF'the.-Dec.larant"a�iid,.it,s successors and assigns, whether acting as Declarant, the Association, the: holder di DeVplopment Rights or an Owner of unsold Units in the Condominium. They shall terminAte i0he siime tiTe:-ip th6 Development Right to create Units, Common Elements and Limited Common Elements. Section 9.5 Pede9triin&qsemetit. The Ejecidrant. retains the right to grant an easement to the residents of the Additional Property (whether -included or -.withdrawn from the Condominium) over the walkways of the project-foKpedestfianingress and egress-io Sopth272"d Street. ARTICLE 10 USE RESTRICMNS, Section 10.1 Permitted Uses: Times hari - ng.':. Prohibited. fie UniC s are iptended for and restricted to use as single-family residences only.' oli_Lan..own�rshi' rental,: 'lease"basis, and for .p, W,: or social, recreational, or other reasonable activities normally incident to., -such iise, including use as a home office not involving use by nonresident employees or visits: by oUstofneirs, clients or -the public. The Units may also be used for the purpose of operating and-ma6ginj the 6n46minlUnj. JJ,6ftf&.. occupations are permissible only to the extent consistent with the fore'goifig ;Find ii1lowed.by.,iippiicable city ordinances; provided, however, that in no event may signs be displayed in`c"6�fiep'66n' with any such home occupation. Timesharing of Units, as defined in RCW 64.j6.,, is py6hibited. -Phe determination of whether or not a use is incident to residential uses shall be mi& by -the Boaro., and: CONDOMNIum MCLARATION --SAY BR(X)K PAIoi. [V limits ts shall be binding on all owners. The Board may by rule or regulation specify the i i of residential q9e.ift general and also in particular cases. ... §ect!66 10.2 Use of Parking Spaces and Storage Areas. Parking within the 6f 1 n C ond igiumis prohibited except in designated parking spaces. The parking spaces may only be used ,;for tie pkking of-o&taoje passenger cars, motorcycles, and passenger vans by Owners or occupants of the 1�-6nd� ;imum. Other types--d"Vohicles, items or equipment (such as boats, trailers, campers, kept in such areas only to the extent expressly allowed by rules t�p'cks * 6r redr6atiopai['Vehides� rosy be ' and regulations ad6pted by.-'th6 Board. No inoperative vehicle may remain in any parking space, road, drive�or oth6r Commio'n 14nibnt for more than 72 hours. The Board may adopt rules further regulating the use of p4rkin'g,s'paces and garagq, includibi.the 'parking of recreational vehicles, campers, boats and the like., -The Boafil may direct that agy drisi&y or inoperative vehicle or any other thing improperly partied ae"kept--, in a. parking space, .garage or elsewhere in the Condominium be removed, and if it is not removed the BoArd may Cause kr to be removed at the risk and cost of the owner thereof. The storage areas may only _!fie used toitom ordknaryhotisehold items"; of the Owner or occupants of Y the Unit. Section 10.3 Drivewus4_ Walksvip EtcDriveways; iveways. walkways, balls, corridors, stairways, and other portions of the Comipigh Elements used LI. fo - r - access sb4.b ' e used exclusively for normal ingr3qss and egress. No obstructiods sh4ll be; placed the'rein,:finl tlk-Board or os perMitted by the Associ-itio&s.rules and regulations. 'Section 10.4. Leases and Rentals. 10.4.1 General. This Section 10.4 applies to'thebecupanqy of -Any Unit by a person other *'an its Owner, including occupancy by tenants, aisipees, ai1d *ubtetfants (who are included in the term' "Ten -ant" for purposes of this Section guests, family members or.,care rverg who share occupancy with the Owner. 10.4.2 lease Term. No Owner (except Declarant during the initial sales pericd)%sbal4'renf or lease -less Abawthiti'&ntire Unit or rent or otherwise permit its Unit to be used for hotel or transient purposes, whidi shall be...defined as rental for a period of less than one (1) year. Every lease or rental agreement nt . shall--br . for -an initial fixed term of not less than one (1) year and not more than two (2) --years. )4ob'wr - k6,r or'Ter Ont"sh4`11 cause or allow the overnight accommodation of business invitees on alz*6ror�ry transient bisis..6uch-'as. a corporate suites operation) either through a direct agreement with the Owner" orIhrougk-:sub;;terIan'Cy. 10.4.3 IAase--keuireMenis. Prioi to. -allowing occupancy of a Unit by a Tenant, the Owner shall require the Tenaqt to ekequte a. written l6se complying with this Section 10.4 (referred to herein as a "Lease"). Every. lease ,.must' pr6vid_�'_ihat its :V'!*r_m s- shall be subject in all respects to the provisions of the Goveming-Doctiments:and ghat Ohy failure by the tenant to comply with the terms of the Governing Documents shill-,bt a..defaUlt under the l0ase,jf a ' ny-Jesse under this section does not contain the foregoing provisions, suck s shall aeve O-wle"ss be deemed to be part of the lease and binding upon the Owner and the'temant-ky riasob oftheirbeing stated`,in this Declaration. The Association may exercise against a Tenant ffie slime.:'riig4ts.1ind remp'dies-�foib_regch ' if the Boed'. of the Declaration or Rules and Regulations as it has againstA OivrieT-:in An determines that any Tenant has violated or permitted his guests or invitees to violate ahy'provision of the Governing Documents, it may give notice to the Tenant and the Owner tO cease such ViolaVion.:'If the violation is thereafter repeated, the Board may direct the Owner to evict the. tenant. -if th.6 Owner does not promptly evict the tenant, the Board may, after Notice and Opportunity to "toe !j'eviQt the: CONDOMINium DECLARATION -SAYBROOK PAGE- 12,' tet iin't. on behalf of and at the expense of the Owner. The Board shall have no liability to an Owner or tenant for any eviction made in good faith. The Association shall have a lien against the Owner's Unit ..for.::any,,. iosts_jncurred by it in connection with such eviction, including reasonable attorneys' fees, 4. which may be Collected and foreclosed under Article 18. -.1.0.4.4 Declaration and Rules to Be Provided to Tenants. Each Owner wbb rents its Unit to a Tenant shall �ro'Vide that Tenant with a copy of the Declaration and Rules and R6gulations. If the Pwn6r fair to provide. evidence to the Association that it has done so, the 'Associatign May furnish a.ccq5y of these dqctiments to the Tenant and charge the Owner an amount to be db . te4ined by thd Bo4rdfor eacfi.,,#6umenr'ptovided. Unless otherwise set by the Board, the copying" chaiqe 's-hill br, tmcentyA.cents:'($.2.5) for each page. The copying charge shall be collectable as',A_Speciaj,,Ass6sm& against the Unit-46d its Owner. j 1114.5.' Tenant Sireening. Any Owner who rents a Unit shall submit to the Association for each prospective Tdnant.a f411y completed rental applokoon, proposed form of Lease. and a report prepared by"a prqfessidnal :tenant sc_=nfflg-,::service' acceptable to the Association verifying: (a) The pro* ptiv6 Tenant's employment fbr,tke,.Iast two years, (b) The prospective-jenant'g.-rental history, in. -its d0abase._and., with al . ......... landlords during the last iwq:y_e (c) The public records in tire: 6bunfies ? of -the pfosp;ectwe Tenant's residence for crimes, bankruptcy and unlawful-Aetkiner-actibris.1involving the prospective Tenant; and (d) Such information as is disclosed by the tenant service's investigation. The-, Association r.fiay ftjeot and proposed Lease or Tenant upon reasonable gr6unds provided the Assodiatign-infor.rns the Ownerof tke"sanle within 5 business days of the Owner's submission of the information required;Gy this Section WAS-- The Owner shall not enter into the proposed Lease until after this five business da'y pq d unless the Association has sooner responded. The Association shall not be respons1W,, to ev46aO arty inform-atbon 'provided by the Owner or in any way make a determination or rec6rnr3f6nd0ion:` as to tli6` su.kabif ty of ,any prospective Tenant. The selection of a suitable and appropriate Tenint chalk be the,:§ole - :'resposiWity of the Owner. The Association and Owner shall treat all information received. ia.accOrdan6e wAh requirements of applicable law including the Federal Fair Credit Reporting-.A.q1v-.-` Section 10.5 Effect on Insuraimce. Nothing s�all.Wdone or`k�pt in any Unit or in any .g U t Common Element that will increase the rste..d. _ insubance on the'-propprty without the prior written consent of the Board. Nothing shall be done or kept in .any Unit or imany., Common.Element that will result in the cancellation of insurance on any part of the property, or -that- you€ii in vi6tation of any laws. Section 10.6 Signs. No sign of any kind shalt be dilgoayeri to the public viiew'on'or from. any Unit or Common Element without the prior consent of the Boatd,. The Bdard may.-er - 6ct on the Common Elements a master directory listing Units that are for sale or lease andm:a"'y' regulate ti-16,size, appearance and location of signs advertising Units for sale or lease. This section shall,,hbt�apply to the Declarant who may post such signs on the property as it deems necessary or appropfia'te_For the sale of CONDOMINjum DECLARATION- SAY13ROOK PA4 - 13:- Urfits in the Condominium as Ion- as the Declarant has a Unit foi- sale or has a Development Right to a4d.Uffits. "8ecti6n 10.7 Pets. birds or small reptiles (herein referred to as _s. Domesticated animals; bij cioe&.7,`ipay b# kept in the Units, subject to rules and regulations adopted by the Board. Pets will not be allowed orf the C6ffimon Elements unless they are on a leash and are being walked to or from the Milt to A public road. Each ownersNiff'pick up any waste matter left by a pet. The Board may at any tiffie req uire tFie re.m69-al of any-.6et whJ6 it rinds is disturbing other Owners unreasonably, and may ..__exerc1w this-authority'for'specific pefs evowthough other pets are permitted to remain. The Board may adopt additional iul _akdregu*in r es goverili g the keeping of pets, and the size, number, nature, conduct 'and-impatt'6f Ws. Section MW intro s 'e A�t 1--v ivity. N60,wner shall conduct, permit or allow (i) any noise, vibration, odor or other 6nde5irable, "effect to.-emahate from a Unit or Common Element; or (ii) any illegal, noxious or offensive activity to be cariied...bri inany..Unit or Coffimon Element. No Owner shall conduct, permit or allow airy activity of the 'keepirig"o-f any ihing in a Unft or a Common Element that may interfere with the other r6siderits'.. use br, enjoyment cif their 'residences, the other Units or Common Elements, threaten the c6nl. . foq. saf4ty.' . or security, ofany Owner or its Authorized Users, or be or become an annoyance or nuisance to other Owners or htahori4ed U.§erA. No use or activity that generates poise, vibration, odors or traffic that *:9 .,Ald generally bq�` considered unacceptable to households in a:residential condominium buildh'ig shall b6-Alloiked.' .Section 10.9 Trash and Garbage Each Owner -'shall' be?,responsibie fo,f'rediov,ing all trash g and g.a?bagB4* tfte Owner's Unit. Each Owner shall plate-ag'traih aadl' rbagp iniuchiocation and a recelitacles'as #e atAhorized by the Board. The Board shall determino",what trash rem0al service to pra�ide far the' Condominium. Each Owner is responsible for rerfioving..frog the Condominium all trash and garbage generated by that Owner or its Authorized Users that-_is,_potM_feqWred- to be picked up such, service. Sectloii 16.10 --Usi of Buildines. No Unit Owner or Authorized User shall use the plumbing facil. . ifiesfor-Any purp6se qiher.than-th6-disposat of ordinary household wastewater. No Unit Owner or Authorized User`sWl in�tall, .'operate or maintain in any Unit any electrical equipment which will overload the elecirica . fsy`stem`oi the,C- ondominiti m., or any part thereof, beyond its reasonable capacity for proper and sate opera4dn:'as d6teriYifi)ed by'thie:Board. No Unit Owner or Authorized User shall use or occupy a Unitor"a 6innion Eleni6ft or,Ao or -permit anything to be done thereon, in any manner which will cause structural_-:iqjury to the buildink, or which would violate any present or rgulk future, ordinary or extraordinai�r, laws, e .ti, or finances; 6r, requirements of the federal, state, or . Qns, nce , local governments, or of any &Pqm6nt,'subdivi&!:0n,.bur - e: ause 'or -offices thereof, or of any other governmental public or quasi -public auttf6riti6.,p9,' exist oil rea6r created having jurisdiction w �hg he over the Condominium. Section 10.11 Noise Control In additipA.to ffie revriqions. I of Seai6n 10,8,,.Po Owner shall ' make any modification to or install any appliance or equipment: in his Unit or tire6mihon Elements that creates, enhances or allows noise from the Unit to nit6rfem-witfi the, other-irsideats' enjoyment of their residence. No Owner may attach sound system speaker tb..did walls, ceilings, ? 1h 4 vespr,,6abinets of a Unit in a manner that introduces vibrations into the structurd'of the boild'ing..." E-X,cept-f0i'flooJidk-.._ installed by Declarant, an Owner may not install any tile, stone, wood od or other therhazd-gur.,We flooring without the permission of the Board, which approval shall not be unreasonably wAhejd..,:-'Tht;!' Board may condition approval on compliance with noise transmission standar&. --the iniial-latiQii of..'an Condo .m iNium DECLARATION - SAYBROOK PAO - 1� a0ustical subflooring, and/or the use of area rugs or carpeting, to reduce noise transmission between floors. ... SectilopI0.12 Hazardous Substances. No Owner shall permit any Hazardous Substance to lac gottated, -processed, stored, transported, handled, or disposed of on, under, in, or though the bwder's.Unit or`Property. -operty. Each Owner shall indemnify, defend, and hold harmless the other 04ner dr Owrxeis and theAssociati6KYrom all fines, suits, procedures, claims, and actions of any kind arising i out --of or JFr way =eori nected with any spills or discharges of Hazardous Substances or wastes arising frofa tM oppr4fion or, use ofYQthenit or the Property by the Owner, tenants, or invitees of the UhiL. As used here -it), the tbc..m,-"Haz#c1Qps Substance" means any hazardous, toxic, or dangeroUs substArieb, waste,,- or m. �k �X-iafwhich-� ko'or'becomes regulated under any federal, state, or local statutes ..ordinance, rule, g ';41kion, ar offier�,Iaw now or hereafter in effect pertaining to '..16 environmental `*QtWiion.,'.= contamination, or d , up, including without limitation any substance, waste, or material whiQh now or,hereafter .is designated as a "Hazardous Substance" under the Comprehensive Enviroarpental Response, COmpehmiomand Liability,'4t (42 USC §9601 et seq); or under any local or state ruk_br regi,ilati6n'. W, itM"ut limiting dip foregping,' Hazardous Substances shall include, but not be limited to, 'any.-iubstano ' 6 which ,-after beingjehaased into the environment or d indirectly by ingestion through 156c6ins�`wlil or-'niay i reasorkably be anticipated to cause death, disease, behavior abnormalities, cancer, �*pqor genetic abnordwAles.... Sotti6n.10.13 Installation of Antennae. No e'k.teribr radio, ieley-ision or satellite teception antennas `or dish rngy be installed on the Common Elem6nts withoutAhe, , - prior.; written.-6onstmt of the Board, ,except as pt6vided below for Protected Anten - n - as (a's defined in 47 l_.UO as it may be amended, ,,the -FCC Rule'), or except as install6d-,.J�y t)eclafdfii ' or -fha,:'Owher of any o Telecmm.dnica!tions�.!Unit. The Unit Owner shall bear all costs of ihsWlatio'n, op eration,--maintenance, repA . ir and . replAcem6nt of any permitted satellite dish or antenna , aVd its..con*Oon 6 the Unit and shbil be-respebsiblo . for arty damage done to the Condominium in conn64ion, therewith. Owners may trot install oby at ' Aeonae, dishes or other receiving devices in or on any - portion,.- of the Common Elementg,# the Ass6ciatiQn pr(�ivides a central antenna system that complies wi;ihth..i FCC Rule. If the Association do6s riot provide stick an antenna system, an Owner may install a Protected Antenna in a Limited Commoii Elemerk thai is: 911 allocated to such Unit, to the extent the FCC Rule requires the Association to permitsi*hinsial'o`tion, subject bject to such reasonable rules and regulations as the Board may adopt, subject tolhe coMitioRya-ho linitati-ops set forth in this section. If the provisions of this section conflict wt-th any sif6hAaw.br regulation; tho- terms of such law or regulation shall prevail, but the conditions and ' Ntn6tio6s set forth ifi this s6ction....shall be enforced to the maximum extent permitted by law. Section 10.14 Conv6axwe` by.---' QW-nersNotice ReoidredL The right of an Owner to , transfer the Unit shall not be subject to'Any 6ght"of approval; "disapo-roval, first refusal, or similar restriction by the Association or the Board or anyone acting qfi`*ir befalf....An Owner intending to convey a Unit must, however, deliver a writteff ilotici to:the Board at'Icast two weeks before closing specifying (a) the Unit being sold, (b) the name'An� address of the purchaser,-., the; closing agent,and the title insurance company insuring the purchaser's interest; and (c) the:estirfi*'d` cloift date. The Board shall have the right to notify the purchaser, the title iinsurance'comi0any,and the closing agent of the amount of unpaid Assessments and charges outstanding: against; the -thi-it, whether 6:r noti--wch information is requested. Promptly upon the conveyance of a &it, the n6i� Unk G.�nevihill the Association of (i) the date of the conveyance; (ii) the Unit Owner 4's-ng ; me , a4address,� and (iiij ratifythe ...... .......... name and notice address of every first Mortgagee of the Unit. The Association ghAll _hoti6,each insurance company that has issued an insurance policy under Article 20 of the'nAme and addras of the new owner and request that the new Owner be made a named insured under suctipolicy'. At the. -time' r: CoN Dom u,4 Eum DEc LARATION - SA Y BRWK of -.-the first conveyance of each Unit, every mortgage, lien or other encumbrance affecting that Unit gM4q- other Unit or Units or real property, other than the percentage of undivided interest of that nir -Common Elements, shall be paid and satisfied of record, or the Unit being conveyed and its uadivi&d interest in the Common Elements shall be released therefrom by partial release duly Fecotd60-.or the purchaser of that Unit shall receive title insurance from a licensed title insurance ..,60mpany.','aga�s.t-.Sucti,.Mo.rtgage, I ien or other encumbrance. Section 10,15:-. 16auisi6n of Nlultiple Units. No Owner who owns or controls three Units is the'. Cohd0minii m,.dirqNy` or indHectly. though an Affiliate of the Owner, shalt acquire, whether dire&,1y.6r Wirkitly.'thrdugh an Aitk4ti of the Owner, any interest in any additional Unit in the Cond&nin4m, whether throu . gh pur6hds6, trade; 'Vft'4inheritance, lease, merger, consolidation or other means of a*isition..,Notwititstitiding ar yLhing lerein to the contrary, this restriction on the acquisition of tlAi%.Aall obt apply toDeclarinl'or. to a Mortgagee acquiring title to a Unit subject to a . P Mortgage by foreclosureordeed in lieu: -bf-forecl6sure. The restriction shall be enforceable by the Association or any Owner by mean's of An action,'.for injunction to res0a ' in any future acquisition or to require an Owner who hu'violated this- restfletipiI to'divest anyinterestso'' acquired. ARTICLE 11 MAINTENAINCE-ANIJ M0D1JhQATi0N_6F-U'N1TS AND COMMON ELEMENTS Soiifonjl.t Unit Maintenance Each 66er-ssbakl',' at the Owner's sole expense, 'maintain, repair arid keep the interior of the Unit and its finishes, . 'i:ipment , , app ia-ficei and-appi-tcOnces in a clean acid sanitary . Condition, free of rodents and pests, , and m.goodoider, c - ondition,y , ano."repair and shall 4 . o all, iedecoi�ting and painting at any time necestvy, to maintain. the gbc#appiearance and condition of the Unit. Each Unit Owner shall be resp6risible for.,.the rriiiintena4C " e, repair or repl4cement of any; damaged or broken glass in windows or doors, including-'faijod thermopane windowseals,,' but:ixcluding exterior flashing or caulking which shalfbe x6j,espbrisibility of the Assocja-hon,; p I g`i'in6s�; hoses, drains toilets, showers, tubs, faucets,'gaibne disposals and other u m6. in _fixtures;�!%Water heaters, fans, hating, cooling, or other equipment; and electricM.-fixtures or appliances which are locgreq..withih or are...'part of the Unit. Each Owner shall be responsible for any uninsured damage caused to the Unit, arlotheir-Unit.or the Common Elements caused by its failure to maintain such equipment br Nturei. Section il 11 or ceiling M614'Pre�ention.." Each -Owner must: (i) keep all window, wall vents and exhaust ihn&14ai' thi Owner's Unit (inclqaing.-_bathroom and kitchen fans and dryer vents) in t . good working order and mususe t4e,pxhaustverl.is and fans to prevent undue moisture in the Unit; (ii) promptly clean and dry all liquid spills or'leaks within:.the �Un..it; (iii) promptly repair any leaking plumbing fixtures (including pipes, hips6s,.dlraiii's, tofiets�,:'ih.6�veI:P dishwashers, faucets, garbage disposals, and shower heads) water heaters or'- hot, " water tanks; -and (iv) promptly notify the Association of any suspected water leik, water inf1ltration.,.cr..exc&%,siva-- Moisture in the Unit or Common Elements within the building, any, watpi damag6, oiany :zvidence of .mold or fungus growth in the building. Each Unit Owner must promptly and propeil imoye"Ainy mold from the Unit. Unit y re Owners must indemnify the Association for any damages stiffer4d 0i ex'peflgie"s incurred c4rred by the Association for maintenance, repair, cleaning or remedioon to tho'Unit or,,C6 . mmon Elements in the building caused by the failure of the Owner to property or promptly comply.:' th thii'sbcti6n ftz Section 11.3 Common Element Maintenance. 11.3.1 Except as set forth in Section 11. 1 the Ass6ciation iS' responsible for the maintenance, repair, and replacement of the Common Elements, including the;,6roited.tomiow CoNDomn,tium DECLARATION - SAYBROOK PAOE Elements. The Board may adopt rules or regulations permitting or requiring Owners to maintain certaid-Limited Common Elements allocated to the Owners' Units if it concludes that the Owners will regularly, 'properly and consistently maintain the Limited Common Elements, and that there is little risk of damage to the Condominium or cost to the Association from such transfer of maintenance responsibility.;- Nevertheless, the Declarant, not the Association, is responsible for the actual costs of the maintenance,=repair .and replacement and insurance of the buildings and improvements on the Additional Property after.: it has.Al eh ,added to the condominium but while they are subject to I velgpment-RigW.to add:UyM, Com0ion Elements or Limited Common Elements. The Association shall become responsible for.the maj6artce;'repair and replacement of those items upon the exercise or ex-piraiioft of such Deyelopment MigT i The 1Jglarant may pay such costs directly or through the Association::. Th&16ecIaranV is also:` entitled 'to' all` income from the Additional Property until assessments oommence'on units:xhertan. 11.3.2 The BbdW.'shall maintain the Common Elements (including the siding, sealants, caulking, flashipt, winc!QVvs, , roofs; " penetrations, : d other components of the Building Enclosure) in sound pnnditlon and:'sbalt not Alto thc'in 6 fail, deteriorate or cease functioning through lack of regular of pro -per ,r tafntenaitce. ❑Jthout I.iirtIting the foregoing, the Board shall develop, update and adhere to --schedules arts{ procedures for the periodic inspection, maintenance, repair and replacement of the Common Elements. The schedttlos and procedures shall be based upon regular ins_ pections of the Condominium,' regular reperye studies, :�n4•'sound'`property r6apagement principles. and practices and shall be adequate to maintain the Comriiou HlemeiKs in the gondition required:- herein. The Board shall keep contemporageoq! • regords: of �IIq-.irRne tion5, nia[intetiance and repair ,work,:. and k i improvements to the Common Elements. Within the we time: -period for delivering tioti'e of .the proposed budget for the upcoming year, :the BtS i4- shall` send each Owner a repott summarizing (i) the maintenance and repair work on the Cond6n--r7tiium :mundertaken in the last year, (ii), any 0eviati6n from the adopted schedules and procedures,'and (ii!) thO expected maintenance acid repairs f& the, upcoming year. Until the expiration of all warrar fies:,given ;lay Declarant and the Eime period.for filing any claims against Declarant, the Board shall conterno6roeously send a copy of :each annual report 6 the.p�eclarant at the address specified Section 26.1 below. 11.343 A060t annually after the Transition Date, the Association shall have the Condominium inspected by a qualified engineer or architect (the "Inspector") in order to ascertain the physical condition of tI•tc improvements in the Condominium and to determine whether maintenance, repairs or reolacements df:.any sitch'rmprovements are indicated. The inspection shall cover, at a minimuIm, ` he Biuldi.ng Enclosure inpluding-.but not limited to the roofs, siding, decks, caulking, windows and doors. The,,Owners.inay vote `ea6h year to waive this inspection requirement for the upcoming year by von of Unit. Owners to 0icb' at:leitst 80% of the Voting Interest in the Association is allocated. The Aug. jgia6orr- wiIl: cause the inspector-to:promptly prepare and deliver a written report of the inspection to the Board (the,-;'Ann>3a! Inspection Kport"), Within the same time period for delivering notice of the proposed budget for the upd6-Ming yitar, the Board shall send each Owner a copy of the Annual. Inspection Report. U&il;ihe expiration„vf all .warranties given by or imposed upon Declarant, and the time period far -,filing any -claims against DeclarantR the Board shall contemporaneously send a copy of each Annual Inspection Report to :the ; beclarant at. the address specified in Section 26. t below. If the Board fails tc deliver: "the : Annual Inspection!•. Report to Declarant, of if Declarant reasonably determines that the A:nntta:l tnspecfion Re, is iiisnfficient, Declarant may, upon 14 days written notice and opportunity" to acre,: (ij- cod"tai:t the :In*ctt r, to .. determine the scope of engagement made by the Board and the scope and results of the -inspection, and (ii) direct the Inspector to perform the inspection or a more complete inspection aiul tti prepare or revise the Annual Inspection Report. The cost of any such work shall be charged tlae' Association ro CONDOMINIUM DECLARATION -SAYBROOK PA6E-11- 11.3.4 At least every three years after the Transition Date, the Association s)alfMin a reserve study from a qualified consultant in order to determine the required level of 'db ha8ing."of-tbe Association's reserve fund for common elements. Within the same time period for diiiveFft notice of the proposed budget for the upcoming year, the Board shall send each Owner a siumaiiry; of the reserve study. Until the expiration of all warranties given by or imposed upon Declaran#, and the"', -time period for filing any claims against Declarant, the Board shall eilclx reserve study to the Declarant at the address specified in cofitern�Orariio6sly send"'4 copy of Ssvctior 26J Wow. Section-11.4Aegrance'of Limited -Common Elements. Unit Owners may not modify, ' pp paint or otherwisedecoFa'ate,.;-or ina- - fty'way ahertfieWrtspective Limited Common Elements without prior approvil.of the Bbard:(whi.6 �Sfiall not be unreasonably withheld, conditioned, or delayed) and in all events museacqtrisuani to the RLkles and,kogW. atlons. Section 11.5 ,Maintenaice of Lithited Common Elemen, Each Unit Owner shall keep r's n the Limited Common E16ments, ii[locited."to such 'Owne -.-.Unit i " aheat and clean condition in accordance with such rules, regulations, -.and Amdard.5-as may be. do�ted by the Association. The Association may permit or requir&-cich -tJnit-,bW`ner:(8 p4form qertM,n maintenance of those Limited Common Elements allocated to such Owjerls Unit (such as ..'fireplaces,,, deck membranes, drains, planters, porches and entries) in accordaiice with;: maintenance or' repair 's'ciftedules adopted by the Association. 'Section 11.6 Exterior Appearance To preserve th& upfform appearancefif ft building, and the Cqmfiton Elements (including the Limited Comrhop Elements-)-, "particulbxly" those visible to the publicy'the Board may require and provide for the painting and, finishing of the Comm on Elements and --prescribe the type and color of the surfaces and finishes. It rnay prohibit; .reqWre.�r regulate any Any nis Modific�tion -or deioration of the Common Elements, including , ny s.de fte... a$screens, doors, awnings, wni4, rails or othet"P"'O"r'do!)s of each Unit and the Building visible f thiext&ior. The Board - -may regal -ate and.co,ntrot - the items stored in or used on the Limited Common -, Ele -ments in order to preserve the pod appearance and condition of the entire Condominium. In addition, this regulatory power extends to the," control of gw type- and color of blinds, draperies and underdrapes or drapery linings, and anyP the� wiitido ` oi exings of _each Unit. Section 017 Cobstruction _Work —Coininon Elements. The Common Elements shall not be reconstructed, itbuk" alteredj .i-emoved,-oT,,*:repta-ced,,-except by the Association acting through the Board acting in accordance':witfi.:the. Act, this Oeclafation, and the Bylaws or the Declarant when exercising rights reserved under this Deolarafiom.", Section 11.8 be clar�ant rns do s..Unfil 'the expiration of all warranties given by Declarant and the time period for filing any -cl'airns'agAinst-Dec lara04-the,, Declarant shall have the right, but not the obligation, to conduct ihspec4bns and tests- fror.10 time to time of all or any parts of the Common Elements, including the Limited Cordmot E16menis, in*, Wer to ascertain the physical condition of the improvements in the Condominiur-11 And w:d'etefmine wl*hO maintenance, repairs or replacements of any such improvements are indicated::.' ' Thq;:Dec!laraPt shall pay all costs of such inspections and tests and restore the affected portion of the p6perty to: its con'ditiori:'Imme4iat6ly.,prior thereto, and shall indemnify the Association and Owners of any g6ecTed'Units:from Any datfilage. resulting therefrom, The Declaration shall have such rights of entry d x 0�, outer, un er aciws and through the property as may be reasonably necessary to exercise the rights described -in, thi.s:Seqtion, CONDOMiNium DECLARATION —SAYBROOK PAdE-18- ARTICLE 12 SPECIAL DECLARANT RIGHTS AND DE'VELOPMENT_RIGHTS Section 12.1 antKigal Declarant Rights The Declarant reserves for itself and any .-successor Decrant tarant the following Special Declarant Rights. -12-1.1 Completion of Improvements. Declarant, its agents, employees and cont - racto , m, ave the right to qoffolete any improvements and otherwise perform work authorized bi thej , )ec4iriiion,.indicat6d on,tbe Sure ey Map and Plans, authorized by building permits, provided '8ment between the Declarant and a Unit Purchaser, necessary to for under iny Purchase: a4SAe Agre satis6 'Dr iinpijed warranty and i -which the Declarant is obligated, or otherwise authoitted or re4;uir6d by .2.- Maintain tes tacilities. Declarant, its agents and employees have the right to maintaip'in any Unifs owned -toy Declarant and in any of the Common Elements, such facilities as Declarant &ems necessary '. or., . c_on,�`e_niqjit.to.,.the constru'Egion, sale or rental of Units, including but not limited to. busimiss offices, miqagement;offices, wes'}6ffices, construction offices storage areas, signs, model units. "andparki - ng areas for all. agents, qpi61qyees, contractors, prospective tenants or purchasers of Declarant.., _bec , farani'A. all atermine.: theme. number, location and relocation of such facilities in its sole discretion. if Decla'rant ceases to bera TJ'niL 0wnqr:,Jhe Declarant shall cease to have any., rights with regard to such kcilit6s unless they -ire remqVed ffvin the Condominium, which Declarant reserves the right to do for a reasonable Time .Afterieasig tv-he a Unit Owner..' ....... ... 12.1.3 Use of Easements. .,Declarant, its agents; einpl6yees and 1:40 -AU or through gal property contractors have the:Tight to use easements through the d6rn ' ri�tjeme 9 that -.,may be added to the Condominium for the purpose7 of 'mak-1ngimpr6vejments within the Cot ilomitliurn 6r exercising Special Declarant Rights. ........ . fi&+ Declarant. Control of Association. bedoiant_.1 as the right to -appoint or`remo44ny officer -.of the Association or any master association '6r.oily member of the B6ard, or to veto: -or qp' i proposed action of the Board or Association, diu'ring the period of prdve . DecianatIX.Con-trof as " vided b 4rticle..14. Fro y Delayf Assessments. Declarant has the right to delay commencement ofAssessaetTis foi' so lqng., - as.-t*q.larant pays all Expenses of the Condominium, as more specifically pr'6vided in.5ecdbn 16.5 , J . of : this:Declaration. Section 12.2 Teri6ination. of,52ciat, Decliratit RiAts. The foregoing Special Declarant Rights shall terminate seven, yes fron! the date the-:Deplaratioals recorded, except for (i) Declarant Control which is governed by Section 14 -'-1; and (H)'main't4jining'Wes facilities, which shall terminate 90 days after the closing of the last Unit sale in ttie Cqndoininhlinj. incl4idiffg-any Units created on the Additional Property. Section 12.3 Transfer of Special Dw4lqjmetit Rights: T he •rights •described in this Article shall not be transferred except by instrument evidpBing:che�.irangfer.�xecuted by the Declarant or the Declarant's successor and the transferee and recorded in . - the'co4nty - in whielf."dii Col dQfifinium - is located. The rights and liabilities of the parties involved in -die such tfansf& ta�d of at pekS"ons, who succeed to any Special Declarant Right are set out in Section 6434.31 6:'Of the 6ndqittffiiiurn'Act. Section 12.4 Development Rights. Declarant reserves for itself and,.;-ar�y successor Declarant, the following Development Rights. CONDOWNIum DECLARATION -SAYBROOK PACE I 12.4.1 Add Real Property or lmyrQyaments. Declarant has the right to add :some or all of the Additional Property, and improvements on the Additional Property, to the C!oridomigiurn. Declarant will add the Additional Property by recording an amendment to the Declar0on tNt (i) amends Schedule A to show the property added to the condominium, and (R) ainendg SchedWe E to show any property that remains as Additional Property. In conjunction with .7ffie. Addition of propz!fty, Declarant will also subject the Property to a Binding Site Plan or Boundary Lirie Aojuscfrtejii through the Cityv-d'VederaI Way. Declarant reserves the right to record a Binding Line n Site PlAn QiRoundaty AdjA&menX against the entire Property. Upon request by the Declarant, (,and Assoqiatf6n �nd individual owhkfs itrequired by the City of Federal Way) must execute such instrfrmeAts -as are necessary -tQ acco0pjiAh the f*gping. 12,4.2 Create tini Common Elements or Limited Common Elements. DeNaiaaf has the right to create. ad-ditionai Units and improvements, associated Limited Common Elements and certain Comftn Elements. on any portion of the Additional Property. -:12.41.1 :.-Thd Declarant intends (6 develop the Condominium in two or more phases. -Phase I 6-onsWs.*of (i) -sixty ;Units 166ted within five buildings, as , described on Schedule A.:d ihowh p . n tht" Suxyey Map and Plans, and (ii) the Limited Common Elements allocated to those Units pursuant-tb tWis DeclarPIP 12.4.2.2 The Declarant may cr6iW up to 310 addjtional Units, and nd associated Common Elements and- Lirqfted: Common., Eltmelits,'Jn 6ne or more ,Subscquenr.-Phascs on the Additional Property. The, DeOlaraht will be the owner of any Units so crewed. (Declarant is not, however, obligated to, -create any. -Units, Common .Elements or Limited Cordmon Elements in any Subsequent Phase. 12.4.2.3 The Declarant will '"create ft additional Units, Cominon :EleMenis - --And Limited Common Elements by recoidifig; a S.6bsequent Phase -Aihi ndrr'enf to the Declaration that (i) amends Schedule B to show Units created by the Subsequent Phase Amendment and reallocates the Allocated Interests'hmong all the Units C6 ndomini�"m, (ii) describes any Common Elements and Limited Common Elements thereby . created 4nd designates the Unit or Units to which any such Limited Common Elernenti,are"Alfbc.,at�4it'and �iii.) amends, Schedule 0 to show any real property that remains subject toDevelopfhL-nt Rijht.%."� If Units are added, the Allocated Interests for single-family residential unitswill.:be reallocated uilng.,the f4pmulae set forth in Article 6. If one or more Units containing muitiple'.siggle-family residential dwellings are added, the Allocated Interests of the existing Units wij H be realiocoed as follows," Lhe:'C- Qmrnon Ownership Interest, Common Expense Liability and V%ingjkerdst will be allpcat - �d t�.each ' such Unit based on the ratio of single family dwellings in - the U�it t� nU,rfibqi of jingle family dwellings in the entire Condominium. 12.4.2A As this - Condomihiuffls-a cotiversiort of an existing -; re project, the improvements located in the Subsequent Phases already bey..constructed. They are similar to the improvements in Phase liq`terms of the nature'.df the struct(Ares and the quality of construction. The Declarant will bear allAxpenses,- . asso0ated 1axi& the';op&afion, maintenance and repair of the Additional Property, 4nd entitla to :alf- incqme, therefrom, until Units, Limited Common Elements or Comings Elements have.beeri created thereon by the filing of a Subsequent Phase Amendment. CON DOM[N i ti m DECLARATION -SAY B RO DK Nc;i -R� 12.4.2.5 Any liens that arise in connection with the a only to he Declaranant's ownership if or construction of this DevelopmentRight shall attach o y t Deelarant's inter-est in any Units owned by the Declarant or against the Declaranes 6evelOpment Rights and Special Declarant Rights and shall not adversely affect the rights of other Unit Owners or the priority of Mortgages on the Units. All taxes and costs relating to lInprovemertmop the Additional Property before assessments have commenced as to Units -fherein--!4hall be pa"id by oratrWated to the Declarant. J Y2:4 Subdividev-Combine or Convert Units. Declarant has the right to subdivi& oi combine Units. or co'n.yeiiiUnits intoCommon Elements on any portion of the Conddifimi6m. Whinevcr Declarant exercises 6v�fopment Right to subdivide, combine or convert a Unit previo-Usly created iM6 additl C ial Unii; C mroon Elements, or both: lf.':Declarant converts a Unit entirely to Common Elements, the ao iendinent tb the , Declaration ratist reallocate WL.the Allocated Interests of that Unit among the oth& Units as if thaf Unit had been by cb:namnation under Section 14. IZ4-%2 Af D6�Want,-�subdlVldes a Unit into two or more Units, whether or not any pa . A df 1pnit isi'oonv�rted' into Common Elements., the amendment to the Declaration rn _ u9t reallocate 411 the Ajfocated Irftire'sts:pf the Unicomong the Tjrii6 -created by the subdivision in any reasbriwe ;nd equitA",.uq4nner presqkib6d by the 12.4.3.3 If Declarant conibinw-two or more:Units, the amendm'ent to the Declaration must reallocate to the'new, Unit..All- of ft Allocated Interests fbrmer�y alldcated to the Units so combined. - 12.4.3.4 The right Co subdivide, cbmbin6 orconvert any Unit, terthinates.drion the cot veyance of that Unit to an Owner other than DeW4;ht. IZ4.4., 3E-tthdpw Prope Declarant has the right to withdraw any portion of the W-1th4wab" le Pkop6rty front --the Condominium subject to the following limitations: Tall the real property in the Condominium is subject gur4y Ma and Plans, or amendment thereto, does not to withdrawal -and thin De6laratidfior, -P describe separate portions.qf,real property subje6t-p that right, none of the real property may be withdrawn if a Uilt in that 09rfign ofther6al pioperty is owned by a person other than the Declarant; 12.4.4portion or-,portia�s-o-f the Condominium are .2, 'if`a subject to withdrawal as described. n.the Dei larAtiod or in the Surviy Map and Plans, or in any amendment thereto, no portion may bo withd6rwn.ff a,. flit in that Portion of the real property is owned by a person other than ihb D&clarant; 12A.4.3 The right to:W0draw,-a p6iiion of he r6l Oioperty from the Condominium terminates, as to that portion o4, whbn tficDeclairpnt has.-,.,'cohveybd.a Unit to an Owner other than Declarant. Any portion of the qondoininklm. anwfiiA no" U-* nit' has been so conveyed, may still be withdrawn; CONDOMINIum DECLARATION—SAYBROOK 12.4.4A The Declarant may withdraw property by recording an Amendment to the Declaration that (i) amends Schedule A to show the property remaining fq,thy Condominium, (h) amends Schedule B to shows the total number of Units remaining after the Amendment and reallocates the Allocated Interests of any Units in the withdrawn property among all the remaining Units in the Condominium, (ii) describes whether any Limited Common EIements from withdrawn Units that are to be re -allocated to remaining Units, #'d (iii) amends Sghedtile. D to show any real property that remains as Withdrawable. If Units areocated Interests for the remaining single-family residential --withdiawn,1he A - i]riits' will' be :determined ustrig the .formulae set forth in Articled (or Section 12A..2.3 for Thi6 cohtaittiitg mote than ode, single-fa><nik residential dwelling); and i�4A.5 The Declarant shall have the right to grant easements over, dcross,.•and t: rough the.`Comatowlikements of the Condominium For the benefit of the Declarant and its supcessors artd �a'ssignj as present and Future owners of Withdrawable Property, (i) for. ngress to and egress over the ,coa4ways and parking lots and sidewalks of the Condominium, OlYta have access Co and to tie into'and use X:ny..water, sanitary sewer, storm sewer, electricity, gas, telephone,;cable, television, or-' 'other iitiiity facilities now or hereafter established in the Condomin-iurrt "and. (ii1} the'6ght to.,use.tlie mail kiosk, the club house and the trash facilities located on s4ch,..properties. The easements reserved hereby shall not be exercised in a manner that will &�_rlo:ad or m4terially,' impair the usd: apd enjoyment of the roadways, pathways, and utilities by Unit OWriers o€ the. `pre+eltt ,@nd f lI ure ow. nerd of the Development Rights. , 12.4.5 Reallocate Limited Comrrr, on Elementse� Declarant has the right to reallocate Limited Common Elements on any portion of the Condomil-iutn�with- respect:to any Units that:have riot been conveyed to an Owner other than Declarant. I :4:G Allocate Parking Spa ces and %ora e A ea& 12A.6.1 Declarant has the right to create and allocate one or more. Lirilited, Cofnmoi Element parking spaces and storage areas to each Unit in the C6Womlhiutti or ' adOd -to' the'- condominium in a Subsequent Phase. Declarant is not, however,. required to.:allbcate..a parking space or storage area to a Unit. Declarant will make any such'.allocatiors,la Schedule C,: or.;by:amendment thereto. Declarant shall periodically amend Schead>ule-,[' to reflect the 1116c4tion of parking spaces and storage areas. T2A6.2 - Deelarant has the right, under Section 12.4.5 of this Declaration to reallocate any ,.Limlted:`Cominoa"El�meht parking spaces or storage areas previously allocated to Uiilts•lthaE-havo not been conveyed by; Declarant to an Owner other than Declarant. Declarant may eicercise-Ih'is right::by arty of the means described in Section 12.4.6-1 above. 12.4.6.3 Undl:'thi Declarant has sold: all.. of the Units, the Declarant shall have the right to control the use -of .Anyunassigned pa �ing spaces'for staging, storage, parking and other construction -related " ptirposes, and sales and marketing:; Any parking spaces that (i) are designated in Schedule C'-fvr cgmmorlt- use;--or;(ii) thak rei aip unallocated one year after the conveyance by Declarant of all -' Units in the Condotnuiium..will be Common Elements For common use and will be subject to the rules andzcgttiations adopted by the Board. If, however, Declarant fails to document an allocation made o :a Unit iti a contract For sale of the Unit, the parking space shall not become a corm iEon,.PaAing space. CONDOMINIUM DECLARATION -SAYBROOK PAGE-22 12.4.6.4 Declarant shall have the right to execute and record an amendment to Schedule C, establishing a re -allocation of parking spaces or storage areas to -Vnits already conveyed by Declarant if the Declarant has obtained the written consent of the "'bwne'Ts of the affected Units. 6 6 $ectidn 1,23- exercise of Develoigment Rights. To exercise any Development Right reserved underaection 12.4, the J)Wr grant shall prepare, execute and record an amendment to the ritiom' An cgnjqncti'-0 n *fewith,. Declarant shall record an amendment or supplement to the gurvey Map-And-Plani if t�e previo0s' --Suryoy,Map and Plans lack the required detail, certification or othetmatters required y `.- u ' - e Con4ornAum Act,,. -.' ired under'th Sec€ion 12.6 Different P�rcels: "ViCkrejqt Titter ea. Any Development Right may be exercised w4iiv--sNcto differght. paycel-s of4fed'i-property at different times. No assurances are made i as to final boundaries of - such :'- parcels or..is'tq the. order in which those parcels may be subject to the exercise of each Develo" mepi Right. E,0en though a "Oppment Rightis exercised in any portion of P the real property subject t6that right, that right. need not be",exercised in all or in any other portion of the remainder of that real property. Section 12.7 Termination o Deveioyntent klghts. Except as expressly set forth in Section 12.4 above, the foregoing. Develoomieni.Rights..s.hall terminate seven , (71years fror I q the date of recording,4an,-.Owner first conveyance of a Unit to an,-wn , e . r Other thanliecl-6nL Declarant ma'y, , however, voluntarily terminate any or all Development Riots at 4ny- time - by recijklig art.: amohdrilk nt to the Declaration specifying which Development Rights are thereby terminate d. Z. Seetioo 12A. Liability for Damage The Declarint is subject, to I i9bility for the prompt repair anA restoration, to a condition compatible with the remainder of the ' -%Cohdor�inium, of any portion�f the Condominium damaged by the exercise of rights reseiVul'�y the -0 ecigant pursuant to A:- 6r created b1'this J)qc[iiaii6it.gr the Condominium Act. ARTICLE 13 OWNERS ASSOCIATION Section ection'j1t' F'ornf- of Association. The Owners of Units shall constitute an owners association to lie kihort6 athe $aybro6k Homeowners Association (the "Association'). The Association shall' be organi-ked as.dnot profit corp ` oration, no later than the date the first Unit in the profit Condominium is conveyed. txcdpt where -expressly reserved to the Owners under the Condominium Act or the Governing Documents, th�, affairs'of.the Association shall be managed by a Board. The rights and duties of the Board and 'oUthe,w "Aseiaki6n �fialj:-be governed by the provisions of the Condominium Act, The Wishin%pn Nonprofit- .;-CorpoTiLion-,Act (RCW Chapter 24-03), the Declaration and the Bylaws. Section 13.2 Bylaws. The Declarant Wfll:-'adcipt initial Byla-Ws to supplement the Declaration and to provide for the administration Of the MsockAtion:-Afid the,' -;property and for other purposes not inconsistent with the Condominium. Actor the Declaration. Th6 initial Bylaws may be amended pursuant to the procedures set forth in Article'2-4, Section 13.3 Qualifications For Membershi 8-ach. Owner of a"UnIt (including" tho Declarant as to Units it owns) shall be a member of the Association .land shall be, entitled to,'one membership for each Unit owned. Only Owners may be members of the Msociafi6n-,.Ownership --Qf a Unit shall be the sole qualification for membership in the Association. CONDOMINIUM DECLARATION - SAYBROOK PA 1- -23- ti Section 13.E Transfer of Membership. The membership of an Owner in the Association is, applirtenant to the, Unit giving rise to the Membership. The Membership shall not be transferred in py-way except upon the transfer of title to the Unit and then only to the transferee of title to the Unit, "Pr0, v ididthat lf a Unit has been sold on contract, the contract purchaser shall exercise the rights of the Owngr'ror purposes of the Association, this Declaration, and the Bylaws, except as hereinafter limited, 1and _:s'hal1::be t - fie yodag. representative unless otherwise specified. Any attempt to make a prohibited transfer,". shall bi void. Any tramfiiW title to a Unit shall operate automatically to transfer the membership iA the Ag$ociiiiontdthe nf,-,w Owner. gic6on 134- VA 13,5.1 Ntumber and Classes of Votes. The allocation of Voting Interests in the Associaifonj.s,sk forth in , -Section 6.4. - .13.5,2 AssWation- caned-Units.;AmThe may not cast any Q votes allocated to a Unit owned by theAssociati6n. In detuirupercening the ntage of votes required to act on any matter, the votes aliocited to Units . 9wried by, the Associatida.s"hall be disregarded. 13.5.3 Arbitration. If the votes -are ' ;tied" on any. Tatter voted upon by the members of the Association, the matter shill b6 su6 ttrA to arbitratiorvind mediation as provided in Article 28, -of this Declaration. .......... Section 13.6 Powers of Association: 13.6.1 General Powers. Except as set fMh,,h� Se. tis 13.6.2, 13.6-3, 15.q,, 15.9mand elsewhere in the Declaration, the Association shall h6ve (i) all poweis authorized under th6 Condominium Act and the Washington Nonprofit Corporation all powers necessary for the operatior)::of the, q6hdon'liniurn or governance of the Association; (iii) any other powers authorized -�Y this Deetarati ' on',`a.nd (iv) ail.powers that may be exercised by any corporatt' of the same type as thb-Association-.` . ..... 13.6.1" 'Capital 1murovements, The Association may cause additional improvements to be made wa,part pf-the Common Elements, and acquire, hold, encumber, convey, and dispose of, i�--the Asso4tion%,, name,- . 'rigfit,"'-title, or interest to real or tangible and intangible personal property, and,.,artano fqo ' e and sup6rvise any addition or improvement to the Condominium, provided that if the estimated: C0sf.,qfany separato I property, acquisition, addition, or improvements to the Condominium, exceeds $25,000, the:;tpprov4fof the OWneit-holding amajority of the votes in the Association shall be required; . and iflsuch estimated. cost,tXCOO& $100,000, the approval of the Owners holding 67% of the votes in*the AisociAtioq-`shall bq1req*ed; 13.6.3 Rules and RoiiulWon All Rules and Regillations adopted by the Board shall comply with the following provi§ions- (wfiich-J shall not apply to amendments to this Declaration adopted in accordance with Article 24):' 13.6.3.1 No Rule or. Regulation :`shall WeOeri,; whir.the. freedom of residential tenants to determine the composition ' -of tk,6"ir hb,iiseh9idk, exc6pt,liha�." Association shall have the power to require that all occupants of t-ldwdi.nig Linit lie mer0bers4 a single housekeeping, unit. 13.6-3.2 In adopting, amending or mseirf6in$` RtAes CONDOMINIUM DECLARA-rioN - SAYBROOK PA(X -24� Regulations, the Association (i) shall give consideration to the matters brought to its attention via the Notibe-and Opportunity To Be Heard procedures; and (ii) shall give consideration to the interests of individual owners and Authorized Users as well as the interests of the Association. No Rule or Regulatkn may be arbitrary or capricious. All Rules and Regulations must treat similarly situated jJnits,'' Owners.: and Authorized Users similarly. No Rule or Regulation shall be inconsistent with or r . vioiAte the proVisiort of. the Declaration, Articles or Bylaws. Sectip r 13* . Fiiian -' t Stet 7nents and Records. The Association shall keep financial rtcordi ina-accordance_JW6 generally accepted•accounting principles and in sufficient detail to enable the Assoc6iat`ion to comply with the resale certificate requirements set forth in RCW 64.34.425. All financial and other.&cords stall be. made reasonably available for examination by any Unit Owner and the Owner's authorised agents. ` AAf- least atnually;' the Association shall prepare, or cause to be prepared, a financialstatefflent=of the Associatl6n: in accordance with generally accepted accounting principles. The annual financial stateme:6n' shall -be audited at least annually by a certified public accountant who is not a member of -'the Board Orin Q..wner..unless Owtiers holding at least 60% of the votes, excluding votes held by the Declaratt, waive' the audit for that year. The financial statement shall be completed in time for fhe Assooiatigr 's' annga4•,,meeting and h any event within 120 days following the end of the fiscal year:.. Any Mortgagee of a first', iortgage wilt be entitled to receive the audited financial statement upon written request. The BoarriSir persons.,having 35% of the voting power of the Association, may require that ari au4_of the At.soc atigti and rnanagemerii -books be presented:at any special meeting. An Owner Ci Mortgagee, at the Owfte(&-or Mdrtgagpc's expense, may at any reasonable time conduct an audit of tbe.bgokgothe $oar4.alad..Ass6cia[ion. Upton written request'of FHLMC; Fannie Mae, HUD or VA, if it is a,.Mottgaoe, the Association shall provide withinia reasonable time the financial statement of the Association f'or tV rgceding fiscal year. Sectiotit 13.1W LMpection of Condominium Documents, Books anti Records. The Association shall make 4xailable to Owners, Mortgagees, prospective purchas4s,and their prospective Mortgagees,: and the.agents ox. attorneys of any of them, current copies oivhl Boom and Records of the Assoziation�' : ``Available shall mean available for inspection upon requcit, during normal business hours.., or. -under other r+asonable circumstances. The Association may require the requesting party to.pay a rea�onalile charge to,e:overlhe cost of making the copies. Section i3.9 '-'Atteri Assodatiion'.Meetinw Until the expiration of all warranties given by Declarant and the time perii5d:for filing -iqy laytns'against Declarant (a) Declarant shall have the right to attend all meetings of'the $oared and the Association; (b) the Association shall send the Declarant notices of such meetings at ,the same time.' itati es are given to the members of the Board or the Association, as the case may, be, and. copies..:of minutes ,of'.0 meetings of the Board and the Association; and (c) the Declarat,,.sl;all. have the- riglit to inspect -the book and records of the Association as Further provided in Section 13.7:- ,N:btices. and minutes shall be given to the Declarant in writing to the Declarant at the address- specified iri Sectioi 26.1 orAii 'sttch other manner as the Declarant shall specify. Section 13.10 Delegation of Power to 5ubassociiitjon. ?city-'` Subsequent Phase Amendment that creates a Unit containing more than the single family ;tesidential dv►olling may provide that upon subdivision of that Unit, any of the powersof the A4 sociartion wiil:lie Olegated to an association of Unit Owners to exercise those powers on behalf of the [7wrs of nethe Units that ,art - created by subdivision. Any such subassociation will have all the powwers set foo in RC,,64.34.304 but may exercise them only in relation to the Units created by subdivision. CONDOMINIUM DECLARATION - SAYBROOK PAOG-25= ARTICLE 14 DECLARANT CONTROL PERIOD 8ection 14.1 Declarant Control Until Transition Date,. Until the Transition Date, the DeclaraAt shal.lhave the right to appoint and remove all members of the Board; provided that not later ". 6Q.-days-, after conveyance of 25% of the Units, including Subsequent PhWse�,6'Owniers other than the Declarant at least one member and not less th4n i54 of the members of the Board must be elected by Owners other than the Be d' clarant.; art, 00,44ys aftef,coifveyance of 50% of the Units, including Subsequent Ph"es'ners 4110 tliAn the Declarant, not less than one-third of the : -to Ow nieml*s offfie Bbai#_must be elected by Owners other than the Declarant. Section 14.2 Trafnsitfon D*. becl0irant'Contrul-W the Mso�iation shall terminate on the Transition Date. The Transition .late 0all."be a& liter anthe-,earliej(bf;',' M. (a) 60 days'aftef conveyance 475% of.the Units that may be created in the Condominium, incjuditj.g Units in:Subseqqdk'Phases, to Owners other than the Declarant; (b) two years after the fast conveyance nr transfer 4 retard of a Unit except as security for a debt, or the last eiercise—of a Ddvelopment Right to create Units; or (c) the date on which the Declarant :iec6ds.an: amendment to the e 'laration Pursuant to which the Declarant voluritaply sun-efiders the right to C furtherappoint and remove officers and members of thi.4o*rd. If t6- Declarant voluOuity surrendersxontrof Pursuant to subsection (d) above, the Declarant may require that for the d4' tio� of1be," Iriod of Declarant Control, specified actions of the Association or M �. . _ P1 the Board, as d6scribe&'in a recorded- instrument executed by the Declarant, be approved by the Declarant before they becor -1" :1 .. ".. ., eqt ve.::., Section 14.3 Decla'raniQaransfei of Ass6d'Won Control. Within 60 days after the Transition Date, the Declarant, shall"Miyer.,fo the Association',411 property of the Owners and of the Association held or controlled by -the Declarant.ificlu-ding,:but.i ot'�imtted to, the following: 14.3.1 The original 41 photod6py,,Df. the r6qor-ded Declaration and each amendment to the Declaration; 14.3.2 The certificate OF tnwrpqratiOri and a Opy .,Or ddofit�ate original of the Articles as filed with the secretary of state; 14.3.3 The Bylaws; 14.3.4 The minute books, including ail fftihutqs i6d. -61hd .books -,and records of the A=ciafion; CONDOMINium DECLARATION - SAYBROOK PAGE '-26 14.3,5 Any rules and regulations that have been adopted; P S 14.3.6 Resignations of officers and members of the Board who are required to resign because the Declarant is required to relinquish control of the Association; 14.3.7 The financial records, including cancelled checks, bank statements, ..... and finaricukl: stgtements'of the Aweiation and source documents from the time of incorporation of th e ' Association through th& date trtransferor control to the Owners; e Xq Misocil 14. i6n funds or the control of the funds of the Association, Alf tangible -`tangibl!p pdrsqnal property of the Association, represented by the Declarant *be 0., proPerty.of the -Association and inventory of the property; 14.3.10 Ekcepffor,Alte mtion&ko a, Unit done by a Unit Owner other than the Declarant, the copy dthe` Dec.jaran.ts plans,' and''SpeC3fflCations,�ilt'll-ized in the construction or remodeling of the Condominium;' with-. 'a certific_ate of the Declarant 4:klicensed architect or engineer that the plans and specifications .represent, to the bust of su6h fa-4on's knowledge and belief, the actual plans and specifications utilizzed'by.fheF_ Dw:'trt... farant.'-'the:cootruction or remodeling of the Condominium; 14.3.11 Insurance policies or cd thereof Fdris iiao mitiiuro and the pi.es Association; _J 14.3.12 Copies of any certificates of ocqupariicy..that xiiay_,havey been issued for the CqridominiuM; -,44-A13 Any other permits issued by goverrunbrIttl bodiek applicable the C ondomkijum inf6rde or issued within one year before the Transition Date; 14.3.14', All -original warranties that are still in effect for the Common Elemen'&;* any other areas dr fa6lities-which the Association has a responsibility to maintain and repair, from the,.contiaabr, ob0ntractor,'suppliers and manufacturers and all owners manuals or instructions famished to the,15eelara:nt' v "th 'to installed equipment or building systems; 14.3.f5 "A roster of Uhit 0%� o,rs and Eligible Mortgagees and their addresses and telephone nurribers."If'knowp, as -"shown on' the, Declarant's records and the date of closing of the first sale of each Upit soldty,ifie beclaftm.- 14.3.16 Any leases of-th6 C6mr0ion.Wernents�pr. ,areas and other leases to which the Association is a party; 143.17 Any employm6t contracts Or service c6niraeff-ig_ which the Association is one of the contracting parties or servic6`C94ract.iin which tl A-i . sociation+:or the Unit Owners have an obligation or a responsibility, directly or'indim'etly", toc. pay'some or -'all oNho-fte or charge of the person performing the services; 14-3.18 A building envelope maintenance .'program... and `''Wch --other maintenance manuals or checklists as the Declarant may elect to develop and ibrnish.-io the Association; CONDOMINIUM DECLARATION - SAYBROOK PAG.9 -27�.:' iation; and 14.3-19 A copy of any Qualified Warranty issued to the Assoc 14.3.20 All other contracts to which the Association is a party, -Section 14A Audit of Records Upon_ Transfer. Upon termination of the period of beclararif Coolrol,.the.. records of the Association shall be audited as of the date of transfer by an indepen.dent: cerfihed public accqPntant_ in accordance with generally accepted auditing standards ulffess.the owners, other er t4an th?.-Declarant, by 67% vote, elect to waive the audit. The costs of the audit a shall -fie Commpn Fg l"nse. Termination' bf'Contrii* and l,eases Made by the Declarant. If entered into before Fhe BoardAecte-'d por5 nt to Sccti6ia 145.1 takes office: (a) any management contract, employment c6,ntr.,_ict.6r lease of recreAtional,;&,'Parking areas or facilities; or (b) any contract or lease between the Association, "and,.'the I)eclari :or Aft affiliate of the Declarant, as defined by RCW 64.34.020(t), may be teij-miRa-ted, with 6r withoOt causef,without perfalty by the Association at any time after the Board elected. pursuant t,o Section 45. F takes office. TKis section does not apply to any lease, the termination of which w� ould'terrhinate the Condominium 6r,riduce its size, unless the real property subject to that lease was included in"ihe'Cou&rrfiniUm f6r'r4e purpose of avoiding the right of the Association to terminate a leaseuqder this section. ARTICLE 15 THE, BOARD -OF DIRECTOM.,.,. .Section 15 1 Selection of the Board an'A'Difticers. :P, ri(€' to the'Tmnsition Date, election or appointmOtof members of the Board shall be governed laySection 14-J.. Within 30 dAys after the Tran�ition Date the :Declarant shall call a Special Meeting -'of the Associatipfi for th6 purpose of ele0i . ng a :BnumberoarO, a majority of whom must be Unit Owners. The number of Boird-.'melrbers and their terms of i§ . erviQes shall be specified in the Bylaws. The Board shall�61edf' . 6fflcers in accordance with the procedures proy - provided i be specified The members of the Board and oMcerss'halliake office upon Board rn,mbers, and their terms of service shall be as 0oyiOM in the Bylaws, except that the OWnerg ... may dot remove any Director appointed by Declaraht pursuant to the Dec1bi1rant:',s.n9ht th con" trol..thc Assiociatio)R. Section i-5.2 "Powgr,& of the BArA,. Except as provided in this Declaration, the Bylaws or the Condominium!Act, the,Boird shall at alftiniesact on behalf of the Association. The Board may exercise all powers:of_t!ie Asso:jation,"'ekc4t as otherwise provided in the Condominium Act, Declaration or the Bylaws. The Awciation:shafl arrange,for goods and services necessary for the proper functioning of the C0n40nliniUrn; and thei cost'shag be' -shared among the Unit Owners in the manner provided in Article 9. "Those...goods add SeMces, M 0y include, but are not be limited to the following: 15.2.1 Utilities. All pe-ossajj ptilityserVices for the Common Elements and the Units. 15.2.2 Additions to Cornirnor'Be or ments..-Addiiiopi improvet4ents to the r Common Elements not provided by the Declarant. 15.2.3 Professional Services. The legal aild accounting se'fykos.-n`ece8sary ............ or proper for the operation of the project or enforcement of Governing Do'cuments: CONDOMINIUM DECLARATION -SAYBROOK PAGi-28;' 15.2.4 Maintenance. The resurfacing, re -striping, maintenance, repair and replacement of the Common Elements including the Limited Common Elements (such as the parking la dsqping, and comm on utility facilities). 15.2.5 Furnishi Such furnishings and equipment (and maintenance of x/ suchtitemi) foe'the,.Gommon Elements, as it shall select. Any other materials, supplies, 15.2.6.,.Dthey NecessaEj Exnenditures. ' 'iterations, " fir j�, nifu '� labor;' services,.. insurance, taxes or assessments which the Board is giuctLkal u .o. ou requiied to secure or;.p'; y f'Puts aiv to the tern this Declaration, the Bylaws, or under law, or a n which in i0 opinion, inecessar_y: or _Oroper., TO the operation of the Condominium, or for the enforcement of this Dp6larAfion.,6_r-0e Bylatvs; Orqoided that if any such services are provided for particular Units ;. the,o6st thkeof shall be spaeiatlyy, assessed to the owners of such Units and shall he immediately due and payable to the Associitioft. 151;7 Liens.. The_'Board rd'a'y also -'..pay any: arnbunt necessary to discharge any lien or encumbrance levie4l' agaitistAe cntir'e property'.,or any;;pitrt thereof which may or is claimed, in the opinion of the B04rd,`to c�onsti�iutb a lienagainst tl�ie`property or against the Common Elements, rather than merely against. the interest . =st therein of'-part-iculai owners. Where one or more owners are responsible for the existence of'such lien, they shall -.-he jointig"arid- severally liable for the cost of disoharging it, and any costs and expense..-inctirred"by the BcAr& mason on 4 suchfien. or liens shall be. assessed sessed . -against the. owners and the Units-yespondible to the eN.t�hf'oi!;'!beir:-respo"nsibility and Y. shall be.1 mmediatel'Aue and payable to the Assodaiion." 15.2.8 Representation by Association. The-The-i± ssociati�n Aall.:represent the Unit.bwn&rs in,a'ny proceedings related to the condemnation, deste 4ction, or liq4idhtior of all or part of ,tile Ccindoamium, and shall have the sole authority to.participate rhY'99, negotiationsand enter into all relat6'd on behalf of the Unit Owners. The i1wi Q_wneri hereby appoint the Ass'O"ciaCion ofh6'ir attorney�in-fact in all such matters. Seqloh 15.3 M na "n eat. The Declarant or Board may contract with an experienced professional Mahaging 4e4._t6' assist -the Board in the management and operation of the Condominium and may.,dele&At6 such its --powers and duties to the Managing Agent as it deems to be appropriate, except as lWi6d hoimim'.:. Any contract with a Managing Agent shall have a term no longer than one, year - .(lout'rnay be renewAile,` by agreement of the parties for successive one-year .reem periods) and shall be terminable Board withol4i payment of a termination fee, either (a) for cause, on 30 days' written notice; or (b)-without eaiusi�,'on i6ouno ' re than 90 days' written notice. The Management Agent shall maintain fidelity insurance sura - nee for its'ofticers',employees and agents who handle or who are responsible for handling" funds of :or funds --administered lay the Association. All such fidelity insurance shall name the Associdiion as , a , n in§umd and -shall b.p.-not.,,less than the estimated maximum of funds, including reserve funds,, jA.c_ustody of the'Assbciation or the Managing Agent at any time while the policy is in force, but, in no 6,vent, shill the aggregate Amount of insurance be less than three months' aggregate Assessments plus reseivetun&'. Ttik po'ticy .:ihalf"c9dtain waivers vets of any defense based upon the exclusion of persons who serve -wlihou 'cor*qsatio_0;ffom.any d#in ition of "employed" or similar expression. Section 15.4 Exclusive Right to Contract. The Board lhall'have the ex''clusive" right to ........ ... contract for all goods and services, the payment for which is to be made from this ce M,mQn exo�se fund. CONDOMINIUM DECLARATION - SAYBROOK Nor. -29-- Section 15. 5 Authorization of Board of Directors. In the event the moneys in the com#fon expense fund are insufficient to pay the expenditures provided for herein, the Board is ghtl orized: to borrow money to meet such expenditures on behalf of the Association and, to secure the :repaymefit thereof, encumber (subject to the limitations set forth in this Declaration) any portion of the Cbminon,Elemei nts not necessary for the habitability of any Unit. Prior to conveying or encumbering the eomrhon F-leTents,, the Board shall obtain the approval of the owners of units to which at [east 804 of .the votes in the Associatigw- allocated, including 80%n of the votes allocated to units not owned by I?eelaran ,-apd the approval of the owners of all units to which any limited common element i$ allocated which' the`Associ�tion prtipases _to.,convey or grant a security interest. Proceeds of the conv�yarlbe it finanaiirg are' n asset of tke Asso6-ation. Any agreement for the sale or financing of cornm& elements shall be in wri. ing; contain,a fugal- description of the common elements affected thereby, shalt�.,be signed"•by,:-.all unit'viwners r tbo areiequired to consent to such action, and all such signatures shall: b.p.acknowledged. The agreement shall be recorded in the county in which the property is located and shall .contain a dea8titie Oy which it must be recorded. No conveyance or encumbrance of common elepents pursuant to this Section shall depr[ver•�ny unit of its rights of access or support. In addition, the�$oardls aufhoriied.tt� bdrrow money to meet�such expenditures on behalf of the Association and, to secure the repaymeirt thereof encumber (sit'bject to the limitations set forth in this Declaration) future income v#; the: iLssocia'tion,`inc' ing arty i�eceivab[e, right to payment, and special and general assessments from theXnii Owners. In conne..Ction- with "the encumbrance of future income of the Association, the Association may eliecute sucly loan documents -.and unddake such obligation ' as-#,e lender may require to realize, on [tie encitmbrarice rnclpding powers.::of attorney, control offer deposit accounts, the right to file or-foreelpse assessment.,liers, altid tote right 6 contact account debtors (including the Unit Owners) and require that paymen£ be made'direetlyAo the lender. Section 15.E imitations on Board AAm thorlix. Excep(when..a highef standard is required by a'provWon df this Declaration or the Condominium Act, the Boakd shall act,=by majority vote. The Board shitil aci reasonably, in light of the facts determined by the Board; it raking all, determinations, "ercising its' disc.1%i6n, grifniing or withholding consent, or taking ari .ac=Iaration behalf of the Association... ssociation. The Board shall not act on behalf of the Association to amend in any manner that requires the, vote of approval of the Unit Owners pursuant to Article �6, to terminate the Condomiruurrf purstlaot. to ,Artidle 27,*cit-to.elect members of the Board or determine the qualifications, powers, and duties, of terfris of office of members of the Board. The Board may, in accordance with the Bylaws, fill vacancies in its. -membership for the unexpired portion of any term. Section 15.7' 4fideriinification. I,Each Board7..member, officer and committee member, including the Declarant wheys acrhtg..:Jn any such capacity; shall be indemnified by the Association against all expenses and liabilities, including attorneys' feesi''ieasonably incurred by or imposed in connection with any proceeding -to w.hith ,$iich person may be a ,party, or in which such person may become involved, by reason of halding::or hitvirrg held such 'position, or any settlement thereof, whether or not such person holds such position at tho-June sWh-expenses-6r-, liabilities are incurred, except to the extent such expenses and liaoili.tie - aare..covered by any type of insurance and except in such cases wherein such person is adjudged guilty a willful misfeasance: in the performance of such person's duties; provided, that in the event of a settlement, the ipdemrzification shall apply, only when the Board approves such settlement and reimburserderi't as --being for the best..fnterests of the Association. Section 15.8 Entry for Repairs or Maintenance. The Assoma on, the Mans tri Agent, - g. n g arid their agents or employees may enter a Unit and the Limited Common Eiernenis allocated 6&ao to inspect and to effect repairs, improvements, replacements, maintenance or sanitatiQr work deemed by the Board to be necessary in the performance of its duties, to do work that tlhe: Dwneir has failed to CoMdoMlNiuM DECLARMION—SAYBROOK PAGE -30 perform in violation of this Declaration, to prevent damage to the Common Elements or to another qhit;,qr to prevent unnecessary Common Expenses. The foregoing includes but is not limited to lreoac�s,.,-flues, bathtubs. sinks, toilets, hot water tanks, plumbing and electrical fixtures and other 'as. =ts,6t tlie,.,buildin9 s. Except in cases of emergency, the Board shall cause the Unit Owner to be giVen.-notice aifar in advance of entry as is reasonably practicable. If the Board determines there is a ne ed 4o repair; r replace a portion of a Unit or Limited Common Element, the Association may either rewire the o*nef to make the repair or -replacement, or may make the repair or replacement itself and allbcave the'cost to the, Owner_ The Board may levy a special assessment against the Owner of the -Unit f6r 41 or a part of SMh Aums, which May be collected and foreclosed by the Association in the same: ; madnei as Assessmenis are coi locted4'rid foreclosed under Article 17. In furtherance of this right, the Boiifd rk ay •eqdire Owners and -their 4uthMiid Users to furnish the Board or its agent with duplicate keys to the Sectionigs Lawstifts or Arbitration Proceedings. 15.9.1 15iner L The poten tial costs and risks. -to the Unit Owners of legal proceedings merit careful evaluation and cjpnsi¢er#tion b;fore �omrnitting the Unit Owners to a course of action. As a result, the Association shall evaluate :those co . h-1 sequ:. doces and receive the approval of the Unit Owners in accordance with , this Se6tio'n 15�.9 be6m-,'-pufsuiag significant legal proceedings. Proceedings by the Association to collect delinqueriii assessments iW146i"i'a.ction to foreclose the AssociatioiN -lien, or proceedings to enforce 'the pkovio.ons'of ,the Declaratioin or th.6 rules and regulations areftot significant legal proceedings 1pr purposes of .this and,iho4ji actions may bethought without regard to the procedures stated in thii Sediiqif 15.9.2 Initial Determinations Tl e Association.'shall.'make the following determinations and summarize the same in a written report (the "Litigation .-Report") prior to commencing Any )ffigation, administrative proceedings, arbitratibrr—froce-edingsi or mediation c:e,.e - ('Trodirigg`'), except -A-s"Oroyided below for an emergency filing. (i) the-pr.inqipal amount sought to ,tse recovered; estimate :,of the amount of attorneys' fees which willi"be Chargeable to the Association at each soO,of -die Proceedings (e.g., prior to commencing litigation, prior to any arbi&adon hearing,mediation. 0 trial, -those to be incurred at mediation, arbitration, or trial, those that 9 may be inc'urred,'a any subseq6ent . trial de-,novo or appeal, and in the collection of any judgment or award); (iii) wheilier - fl_i6'att - " s' fees wi . 1-1 be charged on an hourly or contingent basis; (iv) the estimated cost of. all witn6ses or""mViesti, -including bookkeepers, accountants, consultants, gatq�s investigators, contractQfs,-.. and experts; (iv): the factual .and legal basis supporting the Association's claims in the Proceedings; (v) th6,-legal and fActuAl baiis of any defense or counterclaim against the Re Association or the Unit Owners; :(vii).4n estimate of the* - amounts which the Association or Unit Owners maybe required to pay if,it does not prevail in; the Pr6ceediags including the principal amount claimed and recoverable attorneys' feis and costs q - litigation; (vii i) a Yegal opinion prepared by legal counsel who is independent from the leg4l couhWl'wh6m the Associatibri-prpposes to hire to pursue the Proceedings, and which contains a "valuation " of the A--iso6iation's claims on the basis of the actual amounts in dispute, the likelihood of ifie 'A ' ssdciationprevailing'bn - thos6 claims, and the merit of the defenses to those claims; (ix) an evaluatibd:'of.,"any. -.'nega-tiviz�'.con�eque'nc,es"tile- Unit Owners could stiffer by reason of the proposed Proceedings including ._the .impact of required dik-losures on any Unit sales or refinancings while the Proceedings are pending. If the �Iv roce�dihgs . 6lve an n , alleged breach of warranty by Declarant, the Association shalt-4helude in the Lltigition.'Re'ort the.. Association's demand to Declarant and Declarant's response pursuant -to.RCW 6450.';,-.. 15.9.3 )Emergency Filincs, The Association may make any li g necessary ' to satisfy a statute of limitations deadline prior to completing the procedures stated in this Seption., CONDOMINIUM DECLARATION - SAY13ROOK PAGE -3 IT." 15,A Provided, however, the Association may not incur or commit itself to expending more than $0,000 in connection with any such Proceedings prior to fulfilling the requirements of this Section ndays event, the Association shall satisfy the requirements of this Section 15.9 within ninety 9.9) ay' d s aftet.making any such emergency filing. k 15.9.4. Proceedings Involvine Less Than $50,000. If the amount involved in tfie Pr6cevdings is les s than $50,000j, then the Association may omit from the Litigation Report the legal opinion ftom jndependen4.c6iinsel poncerning a valuation of the Proceedings and the Association .�.:riiay pioceed, witif the Proceqdings _wAouI;,,obkqining: the approval of the Unit Owners as provided below. 1ri d&erminiQg WbAq the $t3,406 threihold has been exceeded, the calculation shall include the principalaiiiouht claimed by tho- Assc0iafiQ.k - 441 costs of pursuing the Proceedings, and all amounts whfch may be,-recqvered a0inst the-:As*iation or Unit Owners if the Association does not prevail. If th6;Assotiatid' initially. corn=nces- Proceedings under the reasonable belief that the � . n - amount involved is less:`tharli $50,600,..:bi .Aater discovers that the $50,000 threshold could be : exceeded, then the Assgc on iati shall staythe Pn*mdiags until it has complied with all requirements of this Section 15.9. 15.9.5 Recd mro enditt& tv':and A6vr4ial. By the Unit Owners. If the amount involved in the Proceedings. .exceeds $5,6,000,Ah6n,4he ' ..-Association shall transmit the Litigation Report together with the Associatidn's tecommendAiion::to oaCfiljnit Owner., The Unit Owners shall 'eqnsider the Association's recommen6iioh,at A, speqlal Tfieeting called for.,that. purpose within sixty (60) days of delivery of the Litigation" 15.9.10 Approyal. By the e nit- .droners. ..The Asiociatiojo shall not COMMence -the Proceedings or enter into any engagement or'commitMprit"in t�`at.fegapd unless that approved action is first a" �:ed by Unit Owners holding sixty-seven perctnt (67%) of . thetotal votes in the Association. The approval of the Owners shall not be required for* Assoiciiati6n to settle the Proceedings.%'The : Awc' iatiorl shall prepare a revised Litigation Report from time to time as events Occur 'Whieg materially change"'the estimates and conclusions stated in any prior Litigation Report. V09p preparatio'n ¢f aWf4yise4- Litigation Report, the Association shall transmit the same to the Unit Owners. together.. with the Association's, recommendation with regard to the continuance of the Proceedings. 15,9.1.1 Pei rsoW L(qbi ih4 Any officer or director of the Association shall not be personally If a'ble_f6r the adverse dverse consequerices:pf any Proceedings provided such officer or director exercise reasonable b"iness�ydgmed in iatisfyinjthe requirements of this Section 15.9. Section15.10 Notice4nd QVW�rtunh T6:8eHea'rd..,Whenever this Declaration requires that an action of the Board be ta'Rin after "Notice and Oppor-fu-nit. ':to be Heard," the following procedure shall be observed: The Board small give'w'ritfe'njiotice-af the proposed action to all Owners, tenants or occupants of Units whose interest would be significantly affected bey the proposed action. The notice shall include a general statement of the proposed.actioii and'ffie date, time and place of the hearing, which shall be not less than five days from the date notice is delivered icy the Board. At the hearing, the affected person shall have the right, person-a4y or - by a' representative, to give testimony orally, in writing or both (as specified in the notice), sutFiect. Ito 'reasonable ' able " r6le� ofpr&edure established by the Board to assure. a prompt and orderly resolution of -the ksiies...'S40 evid6ce sliall... be considered in making the decision but shall not bind the BoardL. The. -: affected 'Person-' shaff be notified of the decision in the same manner in which notice of the meeting was given. FAQJ .32t" CotqDomimuNt DECLARATION -SAY BROOK ARTICLE 16 BUDGET AND ASSESSMENTS 8ection 16.1 Fiscal Year. The Board may adopt such fiscal year for the Association as it deems to be convenient. Unless another year is adopted, the fiscal year will be the calendar year. 01� Section Preparation of Budget. Not less than 30 days before the end of the fiscal year, the Bogrd.-ghall prepare a budget or the Association for the coming year. In preparing its budget the Board shall estimate Lh , e QQ�i;On Expenses of the Association to be paid during the year, shall Take,ade,4u4te provision for 6ccumu49tion of xmrves, including amounts reasonably anticipated to be r ` required.jor`mm'ntenanm repair, art,d re6lacem'ie-q. of the Common Elements, and shall take into accouiit*, any, surolwe or 4iefiqit carried -over fmin the preceding year and any expected income to the Association.. ,.In prepayfngffie budget after 'thee tx-41�sition Date, the Association shall determine the current and lolhg-tprai re4k; bnaWy expected tnafhtenance needs and capital replacement needs of the Condominium using rhq'inspiectiox,6 and W'dgets developed pursuant to Section 11.2 and shall adequately fund reserve;�ccckiints f6r such fuiure t—eeds.T#� Dec lararics hall prepare the initial budget for the first fiscal year of -the As5ociation, z'Prioi' to the Trans.ition Date,, the budget may be based on the actual expenses for the Associatioft and need riot prauWe for acquiWation of reserves. Section 16.3 Ratification of. Stet. Within 30 days After adoption of any proposed budget for the Condominium, the Boards"h-hll provide 4-summary of..-thcV61udg6t-to all the Owners and shall set a:�te for a meeting of the Owners to consider . riaificaiion.,of t1ii budget not few -a- than 14 nor more than 60 d . ay4 after mailing of the summary. Unl6ss at th'at nje ,,9tifig the Owners t6 which a h bU�getils ratified, majority of the votes in the Association are allocated -reject e - udget, the d, whether or not -.a quoidrn is present. In the event the proposed budget is rejected-or.the re.quked notice is not giveg, the ,periodic bOdget last ratified by the Unit Owners s611 be dbptinued,untg suO time as the Unit ratify Ow6ers a ---subsequent budget proposed by the Board. Ifthe Board prbpeses,-a supplemental - budget dbbring: -any fiscal year, such budget shall not take effect unless" .y �the,-. Unit Owners in accordance with this S6ction. Sectioa'10.4 .. Slip plgoLental Budget. If during the year the budget proves to be inadequate for any. reiis6n, includinp, nonpaymen - t. of any Owner's Assessments, the Board may prepare a j supplemental budges for the remainder of -the year. A supplemental budget shall be ratified pursuant to Section 16.3. ...... .. Section 16.5e Assesstn is tortommon, Exnens_es. The sums required by the Association for Common Expenses as re;flecifq-.:.�y the.a-rind'al btidgq and any supplemental budgets shall be divided into installments to be paid each ,month oytr the period to be covered by the budget or supplemental budget. The monthly Assessment" for Common Expenses for each Unit shall be the total of (a) the Common Expense Liability of'. that;Unir- (ex6ept- Spetially Allocated Expenses) times the total monthly installment for Common 'Expense"s foj aii qmtst and-'(b)`-�qy Specially Allocated Expenses of that Unit. Monthly Assessments,.Ofill commence agAinst all Units within 60 days of the first conveyance of a Unit to an Owner other:than Declarint. :Noti4ihstanding the foregoing, the Declarant may delay the commencement of monthly Assessments beyond such: date if the Declarant pays the actual expenses of operating the Condominitith...(proyided that Declarant need not pay any contributions to reserves or charges for utility services used' by Units . that; gave 6.6h co`nveyi d. by Declarant). In addition to the Declarant's obligation to pay Assessments as i Unit Owner As-:proV 0ed- ......... above, the Declarant shall pay all actual expenses associated '�Ith. the renovation;' ,operation, ... maintenance, repair, replacement, and insurance of the property and 'buildings"oii.,:t6:"AddieibnaI Property until Assessments have commenced with respect to Units created on that property pursuant to Article 4. Expenses which relate to both the property in the Condominiums -'and the Additional: CONDOMINium DECLARATION - SAYORWK Pm* -33,; Prpperty shall be prorated between the Association and the Declarant based on the number of dwelling u 'i4:o!1 the respective properties. S ecdon 16.6 Specially Allocated Expenses. The Common Expenses described in this *tiowshall b4 assessedag ainst the Owners as described herein, and not on the basis of the Owner's ..Cominon:.Expense.Liability. 16;6.1,:insurance. The expense of procuring and maintaining insurance wiill be alJ6c&ed_-dmohg ti e,.& its according, to their Common Expense Liability unless the Board based on adi ice from. the As's'o'c Va0n's insurance broker, agent or company, that differ6ndes - In the .yalue.-or,r,epla M6n't c�,skjbf` . `improvements within individual Units or in the activities cotWucted wir6in tni 1�e it appropriate to allocate the cost of insurance in accordance with risk. 46.6-2. Misc4due't. To the gytent that any;-Cornmon Expense is caused by the misconduct of, or violation of the G6_'veriiin&.'bo66&'nf9,.1by, an Q��h - er or Authorized User of any Unit, the Association may assess ss the expen§'--., (including the colt;of any deductible under the Association's property insurance)- Unit'. 16.6.3. Limited, ,_CoMm6'n Elements: Petty Cdftftpn Expense associated with the operation, maintenance, repair, or replacement' of a Limited Cc , �nmon 66rwnt (incl4ding but not limited to filreplaces, flues, decks, patios, storage am" and parking Vac6s) siiall be p4id by the Owner(s) of or assessed against the Unit(s) to whieti that Lli4itedtowfi , ifi6h'Ei6j'nenf' is allocited. If the Limited Common Efi=ent is allocated to more than one Unit, the doard.,shall make M"ch,Assessments equal)y: between: the Units to which it is a] located. 16.6A. Uneggall Benefit. The Board md9taskss,-ainy(6r6mon Expense, o.u-. porttdn thereof, ftt.beaef4s fewer than all the Units solely against the Units receiving the benefit. Utilities. If any utilities paid by the Association are separately rneffimd or su , b1metcred to ,the Units,, tb.c Common Expense for those utilities will be assessed to the users) d'llie service: per Ae Iiiete , r , in&. , If any utilities are not separately metered to the Units, the Board shall assess tite..Corttrrtan Expense'Jor those utilities according to the Common Expense Liability. The Associafion _Piaqreqdi;e=,an 6w.6,r to make a security deposit for utilities and may establish billing ana-.collmdoii'prociedures--fo.r ufility...-chaFps, including the use of a third party agent. Section 16.7 Special AS§e'nments. Fdr those Common Expenses which cannot reasonably be calculated and paid on a m6wh ly ba4is, the Board -ffiayJev� special Assessments for such expenses against the Units, subject to ratifidatioif by. the Q'Wners pursuant tq:,Sectiqp 16.3. Section 16.8 Creation of Reserves-Assessgnents. The-Boarc4&ft--:create reserve. accounts for anticipated expenses for repairs, replacew6pi and iMprovements which will occur in the future. The operation of reserve accounts and Assessments: ibr.'rese ve accounts 8'hall...be further .—r governed by the Bylaws. Section 16.9 Notice of Assessments. The Board shall.,notif y ea)bh Owner ih w&ini of the amount of the monthly general and special Assessments to be paid,"for 06 Owbei~'�s.:Urkft._ ind shall'- - catto fumish copies of all budgets and the Common Expense Liability allo'" nSi.'whi�happily to ft.-Unit, on which the general and special Assessments are paid. The Board shall furfiish the s#ae.thformaUkon to an Owner's mortgagee if so requested. CONDOMINIUM DECLARATION -SAYBROOK PAG.9-34-::�* Section 16.10 Pavinent of Monthly Assessments. On or before the first day of each cPeodar month each Owner shall pay or cause to be paid to the treasurer or designated agent of the Amciation.-all Assessments against the Unit for that month. Any Assessment not paid by the first -da - _.y of tfi calendar month for which it is due shall be delinquent and subject to late charges, interest cfiarges apd collection procedures as provided in Article 17. 5ectibe-4,6.11 Proceeds .,391ong -to Association. All Assessments and other receipts received by'-O' Asociatior(on..befialf of the Condominium shall belong to the Association. *c0on, Failure To Awk. An�'fajiure by the Board or the Association to make the budge&and-,-Assessthen4 her,�unde.r,-6.e&ie. theer.&p6tion of any year for the ensuing year shall not be deemed a waiver or mpdiQqa'tio1f_iivA.y ny respect 'of the provisions of this Declaration, or a release of the Owner fr . 6rik..thp_obli&pay to " As 'sOwnis during that or any subsequent year, and the monthly Assessments amounts established: -- for' the preceding year shall continue until new Assessments are established.; Section 16.113 Certificate of U aid Assessments: Updh..tfie request of any Owner or B Mortgagee of a Unit, the oard-.-W'111 furniihi cerfific'a[e itat ' �6k the amount, if any, of unpaid Assessments charged to the Unit. The gortiticate, shall . be ctinclusive.-upon the Board and the Association as to the amount of such 'hdebtWnos on the dite of thg certificate in fayor of all purchasers and. mortgagees of the Unit who My on'the,,certificatb. irf';-goQd..-faith... The" Board may establish -A reasoftable fee to be charged to reirnbu'rpq it f9r'tho'cost 'of pm-paring.'the oertiftcate. SecOq 16.14 Recalculation upt Assessments If Cbmmon -,Expwse.,-' Liabilities are real ld6ated; Col'Pmon. Expense Assessments, special Assessments, and y," stOmont thereof not yet 44 in due, shall be recalcul4ted in accordance with the reallocated liabilifi6% -Section Contribution to Working Capital. The lh purchaser of any Unit in Phase I -and in an y " Subsequent Phase shall, at the time of closing, pay to the Association (or Declarant asset forth belpW:N- in addhion (o other amounts due, an amount equal to two timd the initial monthly Assessment-agai6st th . e Unit as a..nonrefundable initial contribution to the Association's working capital. The Deciaranx shAll not use any sbph contributions to defray its expenses in completing the Condominium, to pay D&Iaro#s contributibns to reserves or to make up any deficits in the budget of the Association bring Decl&rant'is..6�ont�ol 4 the Association. Upon the election of the first Board by Unit Owners after the-,T-ratisition 0iite, thi'&C)"iira ra sha-H.pay to the Association the same amount as a Working capital contribution for eap"f the Uiiits:kill 1.0'wriod by Declarant. When each of those Units is sold by Declarant, Declarant may coflect $ixcb -funds froth tyre -purchaser and reimburse itself for the working capital contribution pr6ioasl wtft h reiveeo.1ha0Jnit. ARTICLE 17 LIEN AND CJ0LEC'TIb11i3OF ASSESSMENTS Section 17.1 Assessments Are a Lient.gfigl2t 17.1.1 The Association has i- IJen ona .Unit: -for-'any unp aid Assessment levied against a Unit from the time the Assessment is due. 17.1.2 A lien under this Article shall be pA6 ' r t6 all other , libns.,aIld enexim- brances on a Unit except: (a) liens and encumbrances recorded b6fore the-f6epidin-g gf-tois Declaration; (b) a Mortgage on the Unit recorded before the date on which the Asses§meht sought to CONDOMINjum DECLARATION - SAYBROOK PACE -35Y' bel:enforced became delinquent; and (c) liens for real property taxes and other governmental a es-iments or charges against the Unit. 17.1.3 Except as provided in this Section 17.1.3, the lien shall also be prior toy the - Mortgages described in Section 17.1.2 to the extent of Assessments for Common Expenses, exc4idiq:--'any' aipmnts..for capital improvements, based on the periodic budgets adopted by the Association pursuant to Article 16,.Wfikh. would have become due during the six months immediately pr6cedifig t& date of-a..she(iff's,*dle inAfi action for judicial foreclosure by either the Association or a -p5ortg4gcqi ft daie of a trustee's old in.a-agpiudicial foreclosure of a mortgage, or the date of recording of: the_,declaratiOn 'of forfe-O.ureA a p6cceding by the vendor under a real estate contract. Notwid6tanWrig% the"foregoing, tbe..'Oriority -of,thip'Akociation's lien against Units encumbered by a Mortgage he'14 by an EligiW Mortgagee or .. by a"Moftagee who has given the Association a written request for a n6tipeetdoinquefit AAsessmei is:`sha[[ be reduced by up to three months if and to the extent that such lien priority inbludesany,-Min'queficies which relate to a period after such Mortgagee becomes an Eligible Wrtgagee of has' givie'n such ,,notice and before _the Association gives such Mortgagee a written notic6',of the delinquency. 171A Rac6rding Qf this bec[< Fatjbn .-constitutes recorded notice and perfection of the lien for Assessment �Woe s, h r., ft-Association.. -may. recoro a notice of claim of lien for Assessments in the real property record of the c6urkty in wWbh the C6 . hdomitli , urn is loptited. Such recording not constitute the written notice of deii'n'q U `e9cya mortgag f--to emd to above. .Section 17.2:. Lien May Be Foreclosed; 1"al" Fare cwsure. Ae lied 4isin&=under this Artick,'may be enforded judicially by the Association or its`&qt46n-z_e`d rleprdsentatj+ e ifi th6'manner set forth in RcW. 64. 12, ;or nonjudicially in the manner set forth in Sctidri.17.5. The.Association. or its authbrized-represent6tive shall have the power to purchase the IJbit at the f6rediosure sale and to acquire, hold, Tease, mortgage, or convey the same. Upon an express waliver. in the complaint of any right to : -a deficiency Jif-dgment.,in a judicial foreclosure action, the period 4-fedei�npti;n shall be eight Enonths_.' 4othi!ij.:161 this section shall prohibit the Association from taking. a". deed in lieu of foeeqlosum. Except as-.,6ioVidca in Section 17.1.3, the holder of a mortgage or other purchaser of a Unit whQ,qbtainsthe 'right of ;possession. of a Unit through foreclosure shall not be liable for any Assessments or installme0is thereof that �&came due prior to such right of possession. Such unpaid Assessments shaft be dee-med.tiabe Cornmon"Zxpepses. collectible from all the Owners, including such mortgagee or othei�purchaWi 6 . f thabrik ., Forep'losdre. of a mortgage does not relieve the prior Owner of personal liability for --Assessments : . accrul�i 4gains . t the, Vn it prior to the date of such sale. Section 17.3 NoFthidicial Foreclosure. Alien drisjhg-.under this Article may be foreclosed nonjudicially in the manner set'forth ia-RCW 61-.24 f6r ndnj udic i<ij. foreclosure deeds of trust. For the purpose of preserving the Association's,: nonf4di6al fares_ optign, this Declaration shall be considered to create a grant of each Unit in' trust 't&6i4gd'Titld Insuraa6e7Cqmpany or its successors or assigns ("Trustee'), to secure the obligAtions'i)f eAchAJnitbwI;Ier ("Grant6r") to the Association {"Beneficiary") for the payment of Assessmehis. ;'Ovintor'shall retain the right: tp.. possession of Grantor's Unit so long as Grantor is not in default of a" ents-.' .n oWigat ion to pay A ss"st� -The Trustee shall have a power of sale with respect to each Unit, which becomes opprative.In the case Of a default in a Grantor's obligation to pay Assessments. The Units are'not iised`princjpally f���'agribujlium- or farming purposes. It' the Association forecloses its lien nonjudicially' ,�urs6ant to., this 'Sect" it sharl' - ........... not be entitled to the lien priority over mortgages provided in Section 17., 1-.*3.:` Section 17A Receiver During Foreclosure. From the time of con mencerOnt bf an action J' by the Association to foreclose a lien for nonpayment of delinquent Assessments agbonst'a Unit that is: CONDOMINtum DECLARATION - SAYBROOK PAGE-36-` Y not: occupied by the Owner thereof, the Association shall be entitled to the appointment of a receiver to if c011pet.from the lessee thereof the rent for the Unit as and when due. If the rent is not paid, the ficeiver:`rnay obtain possession of the Unit, refurbish it for rental up to a reasonable standard for rental Units in this txPe of Condominium, rent the Unit or permit its rental to others, and apply the rents first W the cost of the receivership and attorneys' fees thereof, then to the cost of refurbishing the Unit, then to aVplic�hble .0a�g�j then to costs, fees, and charges of the foreclosure action, and then to the pay.knent, of t.he...delitiquej-it--Assessments... Only a receiver may take possession and collect rents under this Sertion., and a.-ieceiv�ir skia,11" not 06 appointed less than 90 days after the delinquency. The Ole ik n the foregoing.. is shall not affect the priority of preexisting liens on exercise by. As�oc I io of' the Unit.,,' Section 17.5 Ane Lsmiants .Are Personal Oblizadons. In addition to constituting a lien on the Unit, all stiMs'a I chargeable to any Unit, including all charges in this ,g�ssed by the Msociati6n ge Article, shall be the personal .Oblig4f . ion of the Owner of the Unit when the Assessments are made. Suit to recover personal Judgment for :aTiy,::deli6queat,,4ssessments,,;�,balI be maintainable without foreclosing or waiving theMiensl. si* urin theffi. ,g Section 17.6 Extingukhrent,` of -Wn aiii -Persignat Liability. A lien for unpaid Assessments and the personal liability foa p0m6nt of Assessments is extinpished unless proceedings to enforce the lien or collect the debt 'AL6 it stittqe4.within.--1hree y0is after-, the amottnt of the Assessments'sought to be recovered becomes due. .Section 17. , 71 hiLnt and Several Igiabili!j."In addition. 0 constituting i ligh or" the Unit, each Msess0i8gt shall be the joint and several obligation of L�ipOwfier or-Ownersbf the Mi it to which the swine are assr_sse4 as of the time the Assessment is due. 16 a voluniar convoj ance, the grantee of a Unit shill be Jointly and severally liable with the grantor for AH unpaid Assessments against the grantor Up to the tirse of the grantor's conveyance, without prejudice td.& g4antee's.Fight to recover f0m th6 grantor the`,411G_nbs-,paid by the grantee therefore. Suit to recover;.a persobal judgment for 4y detfinqu'e'rit Assessment shall be maintainable in any court of competelft,ju.tisdiction without foreclosing or Waving tb6'1i�n securing such sums. Section 11.8 Ltite thaie"es an'd-.Interest on Delinguent Assessments. The Association may from time tQ tinie6tablisfi reasonabl6late, charges and a rate of interest to be charged on all subsequent delin4uent Assqtsmentg' or linstilim6n4s.. thereof. In the absence of another established nonusurious rate, deti4iqut * nt.�k�ssmen't't:-6ha`iI bear interest from the date of delinquency at the maximum rate permitted under ACW 19.51020 on iic-Oate on which the Assessments became delinquent. Section 17.9 Recovery 6f'Attarnevi' Fees and Costsr he Association shall be entitled to recover any costs and reasonable attorneys' fe6 in ' curjtd in.-.conneqLion,-.with the collection of delinquent Assessments, whether or not such. co ' llectOn ' a6tivi�ies 'result in suit. being commenced or prosecuted to judgment. In addition, the Associatiori shall b6 entitled-6*recov� costs and reasonable attorneys' fees if it prevails on appeal and in the enforcement of a--Judgineoi. Section 17.10 EjgLri De A& An Owner who has.been ch'r'onicsiiy defim4ueni'in-�pAying his monthly Assessments may be required by the Board, from time to tirrie;` to r0ke-'and 'ma-intaiii.a.... security deposit not in excess of three months' estimated monthl M�eisrn�nts whA"' hali]'ie Y s collected and shall be subject to penalties for nonpayment as are other AsiessTne6is:-'T--be:'d!;'PosirghalI be held in a separate fund, credited to such Owner, and may be resorted to at any h w en : such Owner is ten days or more delinquent in paying Assessments. CoNDomimum DEcLARATION - SAYBROOK No�-37.�: Section 17.11 Remedies Cumulative. The remedies provided herein are cumulative and the B,bard=y pursue them, and any other remedies which may be available under law although not x press�p- he�Tin, either concurrently or in any order. ARTICLE 18 ENFORCEMENT OF GOVERNING DOCU MENTS Secti6a. 18.1 Rights of-Attion. Each Owner and its Authorized Users, and the Association shill c6mpl+.strictly- with':the_' (t �o fg Documents and the proper decisions of the Board. The beclarbtnti : hall eqj . oy a : 1d 1 Lhe : ;its andWerni.i ssuma,al I the obligations of an Owner as to each unsold Unit rights in the CohdOminlum_-ownad .6y. the btqlarlitt. fb.6 Amociation acting on behalf of the Owners or any Ownee'aairig onhis,own_ behAf may ht ing: wacii , gh recover sums due or damages, or for injunctive relief, or a or all of tk&rn,:igaiost;' " part�y '; (��fs to comply with the Governing Documents and any APY ho the proper decisioris,oi the., -BoaqL Section 18.2 AdditionaMiehis. Tnadditioa, t.op Board rnay,,. after Notice and Opportunity to be Heard, take any 6f.-the following actions against any party' who fails to comply with the Governing Documents and the prbperdocisions:of ihe Bpard: Isal Requiip Owner, at its.--ovin expense, to stop work on, and remove, any improvement from such Ow6e's Unit br other areas of,'the., ondbrainium in violation of the Govertift Pocuments and to restore the Unit to -its, prey-j' s.-con4tiof ou t and, upon firtlum of the Owner to do so, ---the Board or its designee shall: have Ae --righv_ to enter the: PrOperty', remove the violation : ve and restothe property to substantially the 's'aMQ`conditOas previously rkisted and any V such action shall not::be deemed a trespass; 18.2.2 Levy Assessments to cover costs incurred iy1he Association to cure a violation of the Governing Documents; 18.2.3 Impose reasonable monetary fines which', shall constitute an Assessment an0'a.lien 4pork- the violator's Unit. No fine may be imposed, howeveir,'unless pursuant to a previously ,,ettaWishO schedule thpoof-adopted by the Board and distributed to Owners; 48.24 Apply a security deposit posted by an Owner to any unpaid utility charges or other Assessments;.- 18.23 "To, the extent dilowtif'-l>y applicable law, suspend any services (including utilities) provided try th6 Association t,6 an Own6e or -the Owner's Unit if the Owner is more than thirty days delinquent in paying any Assessment or othor charge owed to the Association or has failed to replenish any security depositrequired by the 'Associki on' '(provided the Association has given Notice and Opportunity to Be Heard. to any -tenant of the 13nit ); and',, 18.2.6 Exercise seMbelp oT. take action td -abate - -.-any violation of the Governing Documents. Notice and Opportunity i6 be -Heard shall all not, --�Owo�er--16irtq uired in an emergency situation or in regard to the removal of velikla or items.1hat:a're. A.,violation of,,parking or storage rules and regulations. Section 18.3 Remedies Cumulative;- Attorneys' Fees. At remedies 'set bA in'. .'ihe Goveming Documents shall be cumulative of any remedies available at'l6w 6 kqtljty,. 1n_:any�.,ac�on ,r in L to enforce the Governing Documents, if the Association or Owner prevails, it shall: "I b6 ent-ftled::to CONDOMINIUM DECLARATION - SAYBROOK PAr49 -38z, reqover all costs, including without limitation, its attorneys' fees and court costs, reasonably incun-ed irr�sqcb action. ...giaion 18.4 Enforcement_ Discretion;_ No Waiver. The decision to pursue enforcement aetiortjn any particular case shall be left to the Board's discretion, except that the Board shall not be irbi!rary.or c4ricioms in taking enforcement action. Without limiting the generality of the foregoing sentence; the:Boafd may -determine that, under the circumstances of a particular case: TO, Association's position is not strong enough to justify taking any f6rtwi action; 48.41 covedont, restriction or rule being enforced is, or is likely to be construed as, ' Inc onsist&nt with applidle law,, i8.4.3 Although :,3---technical violation may exist or may have occurred, it is not of such a material riatur s to.,'be ob'j;ecti6naA�le te-alreasonable persOp or to justify expending the Association's resources; or 18.4.4 T-liat ,4 , t IS:', not in. the' :Associations best interests, based upon hardship, expense or other reasonable ct'rtqn' tv pursue enforce ment.acT s. Such a d0isi(Ai , shall not be construed to be a waiver of ;ibe righvft `of tt-,AssQciat1on to: enforce such provisionat a late'r time under other eircumstanees..gr,•Ormlude.'the.-Association ftorn,!6nf9icing any other covenant, restriction or rule. The receipt by the BQird 4 p ' 4ment of an X`ssessmqiit from an Owner; Own with kriowl*e of a breach by the Owner, shall noi-be a Waivef'6the breach. o waiver by the 0oard.-bf any t"q irement shall be effective unless expressed in writing ;m'q.s'ign.e-`d for by the BOW. This SpGtion 18.4 also extends and applies to the Declarant. 7' :.-"-nC LE 19 TORT AM_C0N12A_CT.L1AB1CFiY,` Sectioxi 19.1 !Tgclar4nt Liability. Neither the Association nor any Owner except the Deciarant,U.Ii6te for the Peclaranvl§ touts. in connection with any part of the Condominium which the Declarant has tk& re�popibi*,-- to maintain. Otherwise, an action alleging a wrong done by the Association must., be'hro'ughig`gair$tlf�e Association and not against any Owner or any officer or director of the Asipciatiorp.'A7 OyOner . is not pjeclr -ded from bringing an action contemplated by this section because he 6r'she"Is a tin itOwner of a.member or, officer of the Association. Section 19.2 Limitation of Liability for IL(ility FAIlure. Except to the extent covered by insurance obtained by the Boitd,neither ,the Association', iffie Roard, the Managing Agent nor the Declarant shall be liable to any Unit Owner for:; ....... ....... .... (a) the failure:of-a4i ut or q&r service to b67 obta i ned and paid for by the Board; (b) injury or damage to peWn or prg perty cau: idd by the elements, or , resulting from electricity, water, rain,'dust; mold travel or flow from outside of any WMing;, any Cam*n._ Element or from any part of the building, or 'frqro any pipes, drr J, appliances, or equipment, or from any other place; or.", CONDOMINIUM DECLARATION -SAYBROOK .7 f (c) inconvenience or discomfort resulting from any action taken to comply with the Governing Documents, any law, ordinance or orders of a governmental authority. No diminution or abatement of Assessments shall be claimed or allowed for any such utility or service failure, or for such injury or damage, or for such inconvenience or discomfort. No Persopai, LiabUt $ecoo444.3 So long as a Board member, or Association coffirnitiee rt ernber, or A.,&ciations officer, or the Declarant or the Managing Agent has acted in good faith, -witbout willful or intgntional.jfiisconduot, upon the basis of such information as is then Posse . ssed'by such person" 11,6 such personally liable to any Owner, or to any other pers . dii-i4neffidinj the As fqiari� darrog . ..... ion, & Ib4 or prejudice suffered or claimed on account of any act, ornission, erroir, or hegl�i A(�e of sa'qi person; provided, that this section shall not apply to deny coveraib,for a! it such act, omi.ssion, �irqr dt negligence under any insurance obtained by the Board. All TICILE 7.0 INWRANC Section 20.1 Reauired Insumncei torqr&Acing, novlater than the time of the first conveyance of a Unit to a person 6ilkr than the Peclaiant,'thr, Assbei4ion shall maintain, to the extent reasonably available, a policy or policies*and b6nds:necessary to proyide,(a�:property insurance on the Condominium; (b) liability insurance; and (c}`ftdelity insurartce.. Thd Boardsball rew&iv,at least annually .the ade-quacy of the Association's insdrance coverage. All in I gupffifoo shkil be: With carriers V� who meet the insurer qualification standards;. of, Fannie HUD, -A And --FHLMC. Notwithstanding aril other provisions herein, the Associ*ion,:sh4li contkpuousiy, maintain in effect property, ft6od,and',liability insurance and fidelity bonds that meet the inwragee and fidelity bond requiremots fqr condominium projects established by Fannie Mk, 1AJO" FHL.--.Md and VA or other gqyemmdntal.6r qudsi-governmental agencies involved in the secohdary.,,mortgap market so long as arty of t�em is'a Mortgagee -or Owner of a Unit, except to the extent such -coverage IR . " ' no ay.- t available or y has be;M waivedJ-h writing by -them. All such insurance policies and fideliiy h6nds---�shall provide that doveragg" ���nay notbeca�, [led'. or substantially modified (including cancellation -:for nonpayment of preMium) widibut at loist 3'0 days' prior written notice to the Association as the first named insured. Section 20.2 Promxt* Insurake Requirements The Association, or its insurance trustee, shall be the "name(ti . qsure&"'T- he property insurance shall, at the minimum, provide special cause -of -loss coverage in* 20no"t eqdal.t6 1.00%.Ibf the replacement cost of the Common Elements, the Limited Common""Elements, the Units,:: and the,,"interior partitions, equipment, fixtures, and improvements installed in the UiIik:-�y Dt)bla4nt and intended as a permanent part of the Unit (exclusive of such items as laird, founc,Rtiofis, excayiti*, od, other items normally excluded from property policies), and all persdnalolpioorty owned by the Association. The policy may, in the discretion of the Board, cover improveinenti-..or.',"beuirm'ents- instalIdd by the Unit Owners after conveyance by the Declarant. The property. insu,rance,,ghall norpravide coverage for furniture or other personal property of the Unit Owners. The pofiq Tay A'aveIdeduiftibk&%-_for l6ss to the Units as well as the building, if the Board determines that dedudtibles` areeanwhabI6 in i ight-4 the-cozst of insurance and the risk of a deductible to the Owners. The policy_shali contain "GuaraikeM Replac=ent Cost Endorsement" or a "Replacement Cost Endorsement" and, if it q'o'ntafns .'.clause, an "Agreed Amount Endorsement." The policy shall have deduGqbles'thaf are no Iafger than ftsq allowed by Fannie Mae, HUD, FHLMC and VA. The policy shalt: include (i)a&,'!Inftgi0n Gu6rd' Endorsement` (H) a "Building Ordinance or Law Endorsement;" (ii i) _if.the QondQminnffn has rentral heating or cooling, a "Steam Boiler and Machinery Coverage Endorsement;", (iv) an 'Inqteased Cbst of Construction Endorsement;" (v) construction code endorsements; and (vi) ahy,_Pth6r,endorsements CoNTyamiNtem DEcLARATioN -SAYBROOK PAGE -40-. i i .ti • that are required by Fannie Mae, HUD, FHLMC or VA. The loss payable clause of the policy shall show the Association or its insurance trustee, as trustee for each Unit Owner and its Mortgagees. The ]nit Owrfex, not the Association, shall be responsible up to the amount of the deductible under the AssoGi t^ion's-property policy for (i) the cost of damage or loss within the Owner's Unit; (ii) damage s tO another Unfit or the Common Elements resulting from the negligence or misconduct of the Unit raw er o� its Authorized Users; or (iii) damage to another Unit or the Common Elements caused by fagity vr' lea)t gg'plurnWng fixture§. (including pipes, hoses, drains, toilets, showers, tubs, dishwashers, faucets; gaKbage disposals,=and_,sltawer heads), water heaters or hot water tanks that are within or {as to vi ater ireaters-or w .tertanks) serve oplytthe,Qu�r�er's Unit. In any event, however, prior to the creation of Units..in, a Subsequent Phase, tlisy Det [aran0 a . the owner of the structures on any Additional Property, shall ba,solely,respr'nsible for obtaining:ireWrance for such structures. The Association shall have no responsibility •>d obfain shcli insurance. Section 2ti.3 LlahiilftY Insuralice RegWrements. The liability insurance shall insure the Board, the Association, ;ilre ¢wners, the Deolarant and,.the Managing Agent. The policy shall insure against liability of the insured for.property damage;'bodily injury or: death arising in connection with the use, operation or maintenance o€ the Common Elements or other areas under the control and supervision of the Associatiori.:.. The-' policy.: magi insure,- against- liability in connection with employment contracts of the Assoc*tiorn frost .liquor''Kability, , employers' Iiability insurance, automobile, liability insurance and such -:other risks as are .oust6maV4j covered wiftjx spect to residential cdndominium projects of similar construction; locaObn and use. The limits of /lability shall be at least $1,000,000 per occurrence and $1,000,000 aggregate.,... The policy shall contain a "Severaliility of Interest Endorsement" or equivaleiif 1,vhic}e precludes the insurer froin denying the claim of an in Fieecause of the negligent acts of another.iniiretl. Thepolicy ri7ay contain medical payrnnts coverage apd any other overages that the Board deeriis advisable; Section 20.4 Fidelity Insurance Requirements. The fits 111 irksur nce.;'shall name the Association as insured}`Tt Aall protect against dishonest acts on the part of officers, directors, trustees, And ernoloiees of the Association and ail other persons who handle or are responsible for handling flings held or Onsinistered by the Association. All such fidelity insurance shall naive the Association as an insuNd and shalt be -not less than•the estimated maximum of funds, including reserve funds, in custody of the A soc atto-- at any. time while the pot icy is in force, but, in no event, shall the aggregate amount of insurAce ire-•Iess tfiari three -months' aggregate Assessments plus reserve funds. The policy shall contain warners of :any. defense- based <upop the exclusion of persons who serve without compensation from any.,dAr ition of "emplgeA�" or•simiilAr expression. Section 20.5 Additionai• 'n§ ri ante Reouiremi ts: The insurance obtained pursuant to Sections 20.2, 20.3 and 20.4 shall contain the following pri]visions`•and limitations: 20.5.1 Each Uhit Owner is ate it sured.person_ under the policy with respect to liability arising out of the Owner's Coin'Mon QWi nership'lntrriest or membership in the Association. 205.2 A waiver of s4rogatiorr by the Insurer as for any 'axed all claims against the Association, any Unit Owner and/or their • respective gents, merle ers of tie Owner's household, employees, or lessees. 205.3 Coverage shall not be prejudiced by (a) atiy a 't or omission of any Unit Owner unless acting within the scope of the Owner's authority on •be i4lf of ,tfie: Assiiciati,6tr:-or (b) failure of the Association to comply with any warranty or condition with ,regard t4 any portion' of the premises over which the Association has no control. '" CoNooMiN1uM DECLARATION — SAYBROOK PAVE -4 1 20.5.4 If, at the time of the loss under the policy, there is other insurance in the nameh Association's of any Unit Owner covering the same risk covered by the policy, the As ciatio 's policy proVides primary insurance. 20.5.5 A standard mortgagee clause which shall: bi Name the loan servicer and its successors and assigns or Faan Mae as the-)4o 909ee Y (W). Pr6Q61hat any reference to a Mortgagee in the policy shall and in�lud6-'al I.Mortga&6� of aAy'LTnit1,9r Unit lease or sublease in their respective order of Whe prefercnce, er or. iiO-ilamed,-tbereln, OPY Provide That such insurance as to the interest of any Mortgagee shalt not+-,L . be inValid$ted:by any act or neglect of,+the Board or Owners or any persons under ariy.-ofthe and;'' (d� Waive airy prbvision+'_ invaWat ing such mortgage clause by reason of the failure of any,-Mottgage.fo notify tke, i0sgrer of any hazardous use or vacancy, any requirement that the Mlortga'g'epaX,'anX.,- premium thereap, a4il-'anypontribution clause. 20.5.6 A provision ibat cover6ge" I m4i not or-'sulZstantially modified Oncludint cancellation for nonpayment . df. prerhAm) wkh9(if4t1easf30, - daye pr6r ' written notice to the ngmed'insured and the holder of each first Mo#pgi~ oi a Unit.... The,: provipions,?of %ctions 20.1 through 20.5 are not intended t6,codffidict Oi !knit .-any insurance policy 9F.`cov6age._-bbIigations of the Association under any loa�Rgre�mwit,.Aeed.of trust, bond guaranty aranty agrqemeqor,similiq document. gec'den io;� AdiuitMent of Lgges-_Insurance Trusteel Power of'Aftorngj. Any loss covered by t , h6 irl-surahce desefibed - iij. Section 20.2 shall be adjusted with the Association, but the proceeds.fofthat ' los-&'arepayal5le t6'ny "insurance trustee designated for that purpose, or otherwise to the Association, :and no.tAo any Bolder of a Mortgage. The insurance trustee or the Association shal I hold any insurance proceed,s`ln`truseioi Unit Owners and lien holders as their interests may appear - Each Owner and the ,OwOr's Moktgageeijif any, f�,hall be beneficiaries of the policy in accordance with percentages esta . 61'is'hedl' by the CommQh O.y.0neqhIrp. Interest of Owner's Unit. Certificates of insurance shall be issued to Bachbiktrpr and Wrtgage-e topor ' t. request. Subject to the provisions of Section 2 1. 1, the proceeds must be disbursed., first r'for: --ihe� repair or restoration of the damaged property, and Unit Owners and hien.,4161ders aro not -entitted"to rgcdivd-payment of any portion of the proceeds unless there is a surplus of pr'ceed:§--aAer the proper ty has -,be e - p completely repaired or restored or the Condominium is terminated.Each Ownerapp6ints the Xsso&ation, or any insurance trustee or successor trustee designated by tbe; Association;? as , attorney: -in -fa ' ct for the purpose of purchasing and maintaining such insurance, includfng thec4,,ect.ion and approori4te-disposition. of the proceeds thereof, the negotiation of losses and execution of rekasei of,liabjlity,' the execution of all documents and the performance of all other acts necessary t0_ acd;Dmp.dish_.:such purprpses.-: Provided, however, that prior to the creation of Units in a Subsequent PhMe, the Dep. larant, -as -the owner of"fl.1c.. structures on the Additional Property, shall be solely entitled to any insurance proceeds f6r2iny Mich .......... structures. CONDOMINIUM DECLARATION -SAYBROOK PAQ9 -42` Section 20.7 QLhonal Insurance. If the Board deems it advisable, the Association may alto obtain (a) worker's compensation insurance; (b) directors and officers' liability insurance; and -04ny other insurance. -.$ecdO 20.8 Owners' Individual Insurance. An insurance policy issued to the Associatibn d6es not. pFevent an Owner from obtaining insurance for the Owner's own benefit. Each Unit, 0 her,shall"be required to obtain and maintain standard condominium unit owners insurance dees-ignaiing-ih6 Association as ad"AdaWonal Insured" under the owner's policy. The Board may establis`h, i the R6-and Aegufationsj;lhe Mjnimum coverage for Owners' policies. The Association shall have`r�.ght but n6t the Obligationto.i6nitor' the maintenance of such insurance by Unit Owners and shl , i have fo.V1ght,,6ut.Ac,t t hq`qbligativu. t , p- obtain such insurance for the Unit Owner if the - Owners fails'io obtain of maintain a W specially asses the cost to the Unit Owner. Each purchaser of a Unit shall d6ljyerj6 the: -PS Associatioh at cl 5 jpga''�certificate of insurance or other proof that such insurance has bedo'btaiiwed. r Section 20.9 Me --of Wuran'ce -Pro Any -portion of the Condominium for which shall be repaired or replaced insurance is required under this Article which is damaged or.-destroyq!t: promptly by the Association pum4nt.-to ArticYe ;-I unjdss:-, 20.9.1 The Ctin Oomjn ittrii is terminated; J. 20.9.2 Repair or replaCernent. would .be illegal under ;any state: or local health or safety statute or ordinance; or 20.9.3 Owners holding at least -Of �he .1i6tes in the Association, incl4ling ,ivery,bwn e-r of a Unit or Limited Common Element which will not be r0uiland Owners other than the Declarant holding at least 80% the votes in the Association .*6xc)bdj1hg votes held by the Dclarafit v%6- not,to- r.ebVild'o. The cost of repair or replacement in excess of insurance proceeds, reserves and deductible$ paid by Owners . is a .-Cofiimori Expense, which the Board may allocate according to Common Expense Liability ,or o , r as a:-Spoially Allocited Expense. If all of the damaged or destroyed portions of the Condominium ai,6 not, repaired. 'or repj;tced,, (i)the. insurance proceeds attributable to the damaged Common Elemens shall bey used p restore thi"darnaged area to a condition compatible with the remainder of the `Cqndofiiinlum; (H) tl o! ansUraqOe attributable to Units and Limited Common Elements which are not rebuilt shill be distrib.tteOo the Owners of those Units and the Owners of the Units to which those Limited -iCom"-hi"b'n-.-Elerrt6nts-were allwated (and/or the Declarant with respect to any buildings containing dwelling units on atly' Ad-ditionial." Pr'*rty), or to lien holders, as their interests may appear; and (iii) the'r6ind6r of J-he proceeds,shall,& dittributed to all the Unit Owners or lien holders, as their interests may appear,'J-n` proportion to.j , heir CQmMpn Ownership Interests (and/or the Declarant with respect to any, buildingsco�tairfing 4 . Weiii'4 uhits on any Additional Property). If the Unit Owners vote not to rebuild airy Unit,4hav'Unit's allocated interests are automatically reallocated upon the vote as if the Uffit had been �on0rnn; d uoilc-A' tclpe 22, and the Association promptly shall prepare, execute, and recoid-...a ' 6 am ' 6ndment to thi ' s-beclaration reflecting the reallocations. Notwithstanding the provisions of this section-, Alticle 25.9ovems- the dis(rib-tition. of insurance proceeds if the Condominium is terminated. ............. CONDOMINIUM DECLARATION- SAYBROOK PAGE -43-:' ARTICLE 21 DAMAGE AND REPAIR OF DAMAGE TO PROPERTY '$e;;ion 21.1 Dermitions: Damage, Substantial Damage, Rel2air. Emergency Work. As `used in1his ' Article 21: "Damage" shall mean all kinds of damage, whether of slight degree .. .......... -t 2 2' Subkanqal Damage" shall mean that in the judgment of a majc.krt!ty 6f.the Board thq. eaiimat4.AssOsment- determined under Section 21.2.4 for any one Unit exceeds roe peP;qnt othe" full fair' if' inarW-"vAof the Unit before the damage occurred, as f' determined by the then pljrrchtasg6g ent fdrthe.,pPrpose of real estate taxation. 2.113. "Mpair":'soall mean restoring the improvements to substantially the condition they were n before they were damaged, iyj(h each Unit �Pd the Common Elements and having substantially tho §4rne bbun"ries' as.-`bef4ji-e.' qdificat.jonsi to conform to applicable governmental rules and regul atWs or -Available -means of.consCructioii p$y be made. 21.1.4 Work" ark" �'hajf mean. -'work that the Board deems reasonably necessary to avoid further 6-' rnae orsubstantial dinlinuobn irf'MK to the improvements and to prot,ebt-the Owners from liability from the.coriditiibn of the site. Section 214 Initial Board Determinaiibn -''In the evint,.brWge ,yma to`an:� or�on of the p Condominiuptfor which insurance is required by this Decla�afidn, the B�qArd shallprqt iptly, and in all event,$ . withih thirty d4ys after the date of learning of the Damage, rake the follow-fng.,Actiobs. In doing so, the Bo -'rd shall obtain such advice from professionals (such asengincers irchitecti, contractors, 0 ins,urancp conSliltattts, lenders and attorneys) as the Board deems Advi5�ble. and sh;ill consider the information then kabww(d'the Board: 1.21.2.1 -'. Determine the nature and extent of the --"Damage to the Cordominiurpl'and lqm t6 the" Association and Unit Owners, together with an inventory of the improverff66s anal 6 1 y'affec'664 thereby. propeqy dis�ctl 21.12,-- Obtain as.7 , reliiblc ' an estimate as possible of the cost and time to Repair the damage; which�,istimate shall,'-,it'-re�g'sonikbly.practicable, be based upon two or more firm " I - bids obtained from responsibly contractors. 21-2.3"%. Detegnin& the insurance Oocoeds and reserves, if any that will likely be available to pay for the baragie....:' 21.2.4 Determine (i),the art ount, if aiv7, by-'whichby'which the estimated cost of Repair is likely to exceed the expected msurance='Jproueeds, the resOves,.-availabte to repair the damage, other available funds of the Association, and th6 de4ctibfes owed,1'-"by..0wn&'rsy. gfdd,.(ji) the likely amount of the Assessments that would have to be made against each.:4-Unit-if tb6.%dxcess cost -were to be paid as a Common Expense. Section 21.3 Notice ofDamage. Within the same time frail e,.the'.'Boa'rd's'hAlI ffiovi4de Owner with a written notice summarizing the initial Board determinations ma&nunder'Section21.2, explaining any further information needed by the Board to make a final decision oil, the cost ghd schedule for repairs. If the Board determines that the Damage is Substantial Yaaiago�then the nofice..•:' CONDOWNjuNi DECLARATION -SAYBROOK