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Downing Woods Homeowners Assoc · 35 pages
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PREPARED BY AND MAIL TO: MAUPIN, TAYLOR, ELUS & ADAMS PALtn NORTH CARONAZ7B9 goo GOQrace 7 23 NORTH CAROLINA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS DURHAM COUNTY - FOR DOWNING WOODS © THIS DECLARATION, made on the date hereinafter set forth by Hoying-Huff Inc. a North Carolina Corporation, hereinafter referred to as the "Declarant;" WITNESSETH: THAT WHEREAS, the Declarant is the Owner of certain property lying within Durham County, North Carolina, which is more particularly described on Exhibit A attached hereto and made a part hereof: WHEREAS, Declarant will convey the said Property, subject to certain protective covenants, conditions, restrictions, reservations, liens and charges as hereinafter set forth; ; ’ NOW, THEREFORE, Declarant hereby declares that all of the Property described above shall be held, sold and conveyed subject to the following easements, restrictions, covenants and conditions, all of which are for the purpose of enhancing and protecting the value, desirability, and attractiveness of the real property. These easements, covenants, restrictions, and conditions shall run with the real property and shall be binding on all parties having or acquiring any right, title or interest in the described Property or any part thereof, and shall inure to the benefit of each Owner thereof.

11823 ve \ ARTICLE I BOOK 1600 PAGE 724.

DEFINITIONS Section 1 Association Section 2 - Property INDEX 1 Page No.

6 Section 3 Common Area Section 4 Lot Section 5 Member Section 6 Owner Section 7 Declarant Section 8 Person Section 9- Building Section 10 Board of Directors Section 11 Common Expenses Section 12 Amenities Section 13 Declaration Section 14 Builder ARTICLE II - ΑΝΝΕΧΑΤION OF ADDITIONAL PROPERTIES 8 Section 1 Annexation By Members

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oard of Directors Section 11 Common Expenses Section 12 Amenities Section 13 Declaration Section 14 Builder ARTICLE II - ΑΝΝΕΧΑΤION OF ADDITIONAL PROPERTIES 8 Section 1 Annexation By Members Section 2 Annexation by Declarant Section 3 Method of Annexation Section 4 Conveyance of Common Area Upon Annexation ARTICLE ΙΙΙ MEMBERSHIP 10 ARTICLE IV VOTING RIGHTS 10 Section 1 Voting Classes Section 2 - Suspension of Voting Rights ARTICLE V- PROPERTY RIGHTS 11 2 ao0xiGOOrace 725 Section 1 - Members' Easements of Enjoyment Section 2 = Delegation of Use Section 3 - Title to the Common Area ARTICLE VI - COVENANT FOR ASSESSMENTS ......-+ . 13 Section 1 = Creation of the Lien and Personal Obligation of Assessments Section 2 - Purposes of Assessments Section 3 = Amount of Annual Assessment Section 4 - Special Assessments for Capital Improvements Section 5 - Uniform Rate of Assessment Section 6 = Quorum for any Action Authorized Under Section 3 and 4 Section 7 ~- Date of commencement of Annual Assessments: Due Dates Section 8 = Effect of Non-Payment of Assessments: Remedies of the Association ' Section 9 - Subordination of Liens to Mortgages Section 10 ~ Two Month's Assessment to be Collected at Closing Section 11 - Assessments of Declarant or Builder ARTICLE VII = MAINTENANCE OF PROPERTIES . .. . ws . 20 Section 1 = Maintenance of Common Area Section 2 - Maintenance of Lots ARTICLE VIII - ARCHITECTURAL CONTROL & INSPECTION . . 21 Section 1 ~ Common Area Section 2 ~ Rules and Regulations for Parking of Vehicles ARTICLE X - PROTECTIVE COVENANTS . . 1. 2. 2 5 ee ee 24 Section 1 - Land Use Section 2 Section 3 Section 4 ‘Section 5 Section 6 Section 7 Section 8 Section 9 so0KLGOOrnce 726 Lot Size Dwelling Size

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es ARTICLE X - PROTECTIVE COVENANTS . . 1. 2. 2 5 ee ee 24 Section 1 - Land Use Section 2 Section 3 Section 4 ‘Section 5 Section 6 Section 7 Section 8 Section 9 so0KLGOOrnce 726 Lot Size Dwelling Size Building Location Temporary Structures Animals Signs ‘ Garbage Cans, Clotheslines Television Antennaes, Discs, Etc.

Section 10 = Quiet Enjoyment Section 11 = Waiver ARTICLE XI - RIGHTS OF INSTITUTIONAL LENDERS .

ARTICLE XII - PAYMENT OF TAXES AND ASSESSMENTS ON COMMON AREA... 1. 1 ww ee ARTICLE XIII EASEMENTS . . . . 2 6. we ew ew we we Section 1 - Walkways, Roadways and Utilities Section 2 - Easements Appurtenant to Lots Section 3 - Emergencies Section 4 + Easement for Governmental Agencies ARTICLE XIV = GENERAL PROVISIONS . ........00. Section 1 - Enforcement Section 2 - Severability Section 3 ~ Duration Section 4 = Amendment Section 5 - Certification of Amendment Section 6 - Restrictions Against Association Entering Into Long Term Contracts While Declarant in Control of Board of Directors Section 7 = Underground Utilities and Street Lighting Section 8 = Responsibility of Governmental Authority 27 29 29 31 oh caine et erm = aook1GOOrnce 727 ARTICLE I DEFINITIONS Section 1. "Association" shall mean and refer to DOWNING WOODS HOMEOWNERS ASSOCIATION, INC., its successors and assigns.

. Section 2. "Property" shall mean and refer to that certain real property referred to as Downing Woods, hereinbefore described, and such additions thereto as may hereafter be brought within the jurisdiction of the Downing Woods Homeowners Association, Inc.

Section 3. "Common Area" shall mean all real property dedicated to the common use and enjoyment of the Owners, including, but not limited to, the real property conveyed to the Association. Common Area shall include areas of active and

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n all real property dedicated to the common use and enjoyment of the Owners, including, but not limited to, the real property conveyed to the Association. Common Area shall include areas of active and passive recreation and their associated parking areas, and roadways and parking areas other than private driveways and parking spaces serving dwelling units. The Common Area shall include private roads within the Property, and any water lines and sewer lines that may be located within the Property and not within any publicly dedicated utility easements. The Common Area to be owned by the Association shall be designated on a plat or plats of Downing Woods Subdivision recorded or to be recorded in the Office of the Register of Deeds for Durham County, North Carolina.

All Common Area shall be subject to easements for utilities, including ewer and water lines, easements for ingress g00KL60Orsce 728 ancl egress, and easements for any encroachments arising from the initial improvements.

Section 4. "Lot" shall mean and refer to any plot of land shown upon any recorded subdivision map of a portion of the Property which is intended to be used for construction of residential dwellings.

Section 5. "Member" shall mean and refer to every Person or entity who holds membership in the Association.

Section 6. "Owner" shall mean and refer to the record Owner, whether one or more persons or entities, of a fee simple title to any Lot which is a part of the Property, including contract sellers, but excluding those having such interest merely as security for the performance of an obligation.

Section 7. "Declarant" shall mean and refer to Hoying-Huff, Inc. a North Carolina Corporation, and its successors and assigns to whom the rights of Declarant hereunder

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he performance of an obligation.

Section 7. "Declarant" shall mean and refer to Hoying-Huff, Inc. a North Carolina Corporation, and its successors and assigns to whom the rights of Declarant hereunder are expressly transferred, in whole or in part, and subject. to such terms and conditions as the Declarant may impose.

Section 8. "Person" shall mean and refer to any individual, corporation, partnership, Association, trustee, or other Legal entity. , Section 9. "Building" shall mean and refer to a | residential structure, constructed or erected on the Property.

Section 10. "Board of Directors" or "Board" means those persons elected or appointed and acting collectively as the Directors of the Downing Woods Homeowners Association, Inc., unless a contrary intent is evident.

Book 1600race 729 Section 11. "Common Expenses" shall mean and include: (a) All sums lawfully assessed by the Association against its members; (b) Expenses of administration, maintenance, repair, or replacement of the Common Area: {c) Payments and obligations to reserve accounts established by the Association; (d) Expenses declared to be Common Expenses by the provisions of this Declaration or the Bylaws; (e) Expenses agreed by the members to be Common Expenses of the Association; and (£) All ad valorem taxes or other charges and assessments levied against the Common Area.

Section 12. "Amenities" shall mean the facilities constructed, erected or installed on the Common Area. ’ Section 13. "Declaration" shall mean and refer to this Declaration of Protective Covenants and all subsequent valid amendments thereto.

Section 14. "Builder" shall mean and refer to any person, firm or entity to whom a Lot is sold for the purpose of constructing a residential dwelling for resale to the public.

ARTICLE II

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ents thereto.

Section 14. "Builder" shall mean and refer to any person, firm or entity to whom a Lot is sold for the purpose of constructing a residential dwelling for resale to the public.

ARTICLE II ANNEXATION OF ADDITIONAL PROPERTIES Section 1. Annexation by Members. Except as provided in Section 2 of this Article, annexation of additional Property shall require the assent of two-thirds (2/3) of the Class A p00KL60Orxce 730 membership and two-thirds (2/3) of the Class B membership, if any.

, ‘Section 2. Annexation by Declarant. If within 5 years of the date of incorporation of this Association, the Declarant should develop additional lands adjoining Downing Woods or within proximity to Downing Woods so that in the sole judgment of the Declarant such lands can be effectively governed by this Declaration and any common area located within such lands can be responsibly managed by the Association, such additional lands may be annexed to said Property without the assent of the Class A members.

Section 3. Method of Annexation. Annexation of additional Properties shall be accomplished by recording in the Durham County Registry a Declaration of Annexation, duly executed by the Declarant if the Declarant has the right to annex pursuant “to Section 2 above (and by the Association if pursuant to Section 1 above), describing the lands annexed and incorporating the provisions of this Declaration, either by reference or by fully setting out said provisions of this Declaration. The additional lands shall be deemed annexed to the Property on the date of recordation of the Declaration of Annexation, and in the case of an annexation by the Declarant, no action or consent on the part of the Association or any other Person or entity shall be necessary to accomplish the annexation.

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ion of Annexation, and in the case of an annexation by the Declarant, no action or consent on the part of the Association or any other Person or entity shall be necessary to accomplish the annexation.

Section 4. Conveyance of Common Area Upon Annexation.

Subsequent to recordation of the Declaration of Annexation by the Declarant, the Declarant shall deliver to the Association one or Poe eT ay totam aot 4 poor 1GOOrace 73L more deeds conveying any Common Area within the lands annexed as such Common Area is developed, as set forth in Article V, Section 3 of this Declaration.

ARTICLE III MEMBERSHIP Every Person or entity who is a record Owner of a fee or undivided fee interest in any Lot which is subject to the Declaration, including contract sellers, shall be a Member of the Association. The foregoing is not intended to include persons or entities who hold an interest merely as security for the performance of an obligation. No Owner shall have more than one membership. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment by the Association. Ownership of such Lot shall be the sole qualification for membership. The Board of Directors: may make reasonable rules relating to the proof of ownership of a Lot.

ARTICLE IV VOTING RIGHTS Section 1. Voting Classes. The Association shall have two classes of voting memberships: Class A. Class A members shall be all those Owners as defined in Article III with the exception of the Declarant.

Class A members shall be entitled to one vote for each Lot in which they hold the interest required for membership by Article - III. When more than one Person holds such interest in any Lot, all such persons shall be members. The vote for such Lot shall 10 poo 1G OOrace 732 oe

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the interest required for membership by Article - III. When more than one Person holds such interest in any Lot, all such persons shall be members. The vote for such Lot shall 10 poo 1G OOrace 732 oe be! exercised as they among themselves determine, but in no event shall more than one vote be cast with respect to any Lot and no fractional vote may be cast with respect to any Lot.

Class B. The Class B Member shall be the Declarant.

The Class B Member shall be entitled to three (3) votes for each Lot in which he holds the interest required for membership by Article III, provided, that the Class B membership shall cease and be converted to Class A membership on the happening of one of the following events, whichever occurs first: (a) when the total votes outstanding in Class A membership equal the total votes outstanding in Class B membership, but provided that the Class B membership shall be reinstated if thereafter. and before the time stated in subparagraph (b) below, such additional lands are annexed to the Properties without the assent of Class A members on account of the development of such additional lands by the Declarant, all as provided for in Article II, Section 2 above, or (b) on July lst, 2000.

(¢) upon the surrender of all Class B memberships by the holders thereof.

Section 2. Suspension of Voting Rights. The right of any Member to vote may be suspended by the Board of Directors for just cause pursuant to ites rules and regulations or for nenpayment of dues.

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| | ARTICLE V PROPERTY RIGHTS Section 1. Members' Easements of Enjoyment. Every Member shall have a right and easement of enjoyment in and to the 11 p01 6OOrace 733 Common Area, including the rights of ingress and egress, and such easement shall be appurtenant to and shall pass with the right to

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e a right and easement of enjoyment in and to the 11 p01 6OOrace 733 Common Area, including the rights of ingress and egress, and such easement shall be appurtenant to and shall pass with the right to every Lot, subject to each of the following provisions: (a) The Association shall have the right, in accordance with its Articles and Bylaws and with the assent of Members entitled to cast two-thirds (2/3) of the votes of the Class A membership and two-thirds (2/3) of the votes of the Class B membership, if any, to borrow money for the purpose of improving the Common Area and facilities and in aid thereof to mortgage the Common Area, or any portion thereof, provided the rights of such mortgagee in said Property shall be subordinate to the rights of the Owners hereunder.

(b) The Association shall have the right to dedicate or transfer all or any part of the Common Area for such purposes and subject to such conditions as may be agreed to by the Board’ of Directors. No such dedication or transfer shall be effective unless an instrument signed by Members entitled to cast two-thirds (2/3) of the votes of the Class A membership and two-thirds (2/3) of the votes of the Class B membership, if any, has been recorded, agreeing to such dedication or transfer; and {c) The right of the Association acting through its Board to grant permits, licenses, and easements over the Common Area as set forth in Section 1 of Article XIII of this Declaration.

12 gooxLGOOrnse 734 (d) The right of the Association, to formulate, publish and enforce rules and regulations as provided in Article IX of this Declaration.

Section 2. Delegation of Use. Any Member may delegate, in accordance with the Bylaws, his right of enjoyment @ te the Common Area and facilities to the Members of his family,

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e IX of this Declaration.

Section 2. Delegation of Use. Any Member may delegate, in accordance with the Bylaws, his right of enjoyment @ te the Common Area and facilities to the Members of his family, his tenants, or contract purchasers who reside on the Property.

Section 3. Title to the Common Area. The Declarant hereby covenants for itself its heirs and assigns, that, prior to the conveyance of the first Lot to a person or entity, other than a Builder, it will convey fee simple title to the Common Area as shown on the map referred above, to the Association, free and clear of all encumbrances and liens, except utility and drainage easements and easements to governmental authorities. Similarly, the Declarant will convey to the Association Common Area which are parts of Downing Woods as those portions are annexed in the future until all Common Area, as shown on plans approved by Durham County, have been conveyed to the Association.

ARTICLE VI COVENANT FOR ASSESSMENTS Section 1. Creation of the Lien and Personal Obligation of Assessments. The Declarant, for each Lot owned within the Property, hereby covenants, and every other Owner of ) any Lot by acceptance of a deed therefor, whether or not it shall ke so expressed in any such deed or other conveyance, is deemed to covenant and agrees to pay to the Association: (a) Annual assessments or charges; and { 13 | pe ne ee SSM eo ae p00K1COOrscE 735 (b) Special assessments for capital improvements, Such assessments shall be fixed, established, and collected from time to time as hereinafter provided.

The annual and special assessments, together with such interest thereon and costs of collection thereof, as hereinafter provided, shall be a charge on the land and shall be a continuing

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fter provided.

The annual and special assessments, together with such interest thereon and costs of collection thereof, as hereinafter provided, shall be a charge on the land and shall be a continuing lien upon the Lot and improvements against which each such assessment is made. Each such assessment, together with such interest and costs and reasonable attorney's fees, shall also be the personal obligation of the Person who was the Owner of the Lot at the time the assessment fell due. The personal obligation of an Owner for delinquent assessments shall not pass to his successors in title unless expressly assumed by them. All assessments shall be shared equally by the owners of each Lot, except as otherwise provided in this section. ' Section 2. Purposes of Assessments. The annual assessment shall be used exclusively for promoting the recreation, health, safety, and welfare of the residents of Downing Woods; enforcing these covenants and the rules of the Association; improving and maintaining the Common Area lying within Downing Woods, and paying all Common Expenses.

The Association shall establish and maintain an adequate reserve fund for the periodic maintenance, repair and.

replacement of improvements to the Common Area which the maintained out of the annual assessments.

14 Association shall be obligated to maintain. The fund shall be .

gon GOOrxce 736 ot Section 3. Amount of Annual Assessment.

(a) Initial Assessment. To and including December 31, 1990, the initial annual assessment shall not-be in excess of $180.00 per Lot, the exact amount of which shall be determined from time to time as provided in Subsection (dad) of © this Section 3.

(b) Increase _ by Association. From and after December 31, 1990, the annual assessment effective for any year may be

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e determined from time to time as provided in Subsection (dad) of © this Section 3.

(b) Increase _ by Association. From and after December 31, 1990, the annual assessment effective for any year may be increased from and after January 1 of the succeeding year by the Board of Directors, without a vote of the membership, by a percentage which may not exceed the greater of seven (7%) percent or the percentage increase reflected in the U. S. City Average, Consumer Price Index - United States and selected areas for urban eee ee SS eee wage earners and clerical workers all items most recent index and percentage changes from selected dates (published by the U. S.

Bureau of Labor Statistics, Washington, D. C.). or such other | Index as may succeed the Consumer Price Index for the twelve month period ending on the immediately preceding October lst.

(c) Increase by members. From and after December 31, 1990, the annual assessment may be increased by a percentage greater than permitted by this Article by an affirmative vote of \ \ 1 | members or proxies entitled to cast two-thirds (2/3) of the votes of each class of members who are voting in Person or by proxy, at a meeting duly called for such purpose, written notice of which, setting forth the purpose of the meeting, shall be sent to all members not less than fifteen (15) daye nor more than thirty (30) ' days in advance of the meeting. ‘The limitations herein set forth : | sox1GOOrace 737 shall not apply to an increase in assessments undertaken as an incident to a merger or consolidation in which the Association is authorized to participate under its Articles of Incorporation.

(d) Criteria for Establishing Annual Assessment. In establishing the annual assessment for any assessment year, the

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ch the Association is authorized to participate under its Articles of Incorporation.

(d) Criteria for Establishing Annual Assessment. In establishing the annual assessment for any assessment year, the Board of Directors shall set the annual assessment high enough to cover all current costs and expenses of the Association, any accrued debts, and reserves for future needs.

(e) Decrease of Annual Assessment. The Board of Directors may decrease the annual assessment from time to time if in its opinion such decrease is prudent.

Section 4. Special Assessments for Capital Improvements. In addition to the annual assessments authorized above, the Association, may levy, in any assessment year, a special assessment applicable to that year only for the purpose of defraying, in whole or in part, the costs of construction or reconstruction, unexpected repair, or replacement of a described capital improvement upon the Common Area, including the necessary fixtures and personal property related thereto; provided that any such assessment shall have the assent of members or proxies entitled to cast two-thirds (2/3) of the votes of each class of members who are voting in Person or by proxy at a meeting duly called for this purpose, written notice of which, setting forth the purpose of the meeting, shall be sent to all members not less than fifteen (15) days nor more than thirty (30) days in advance of the meeting. The amount of the proposed assessment need not be stated.

16 Book 1600rxce 738 Section 5. Uniform Rate of Assessment. The annual assessment and special assessments must be fixed at’a uniform rate for all Lots, on a per Lot basis, and may be collected on a monthly or quarterly basis as determined by the Board.

Section 6. Quorum for Any Action Authorized Under

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nts must be fixed at’a uniform rate for all Lots, on a per Lot basis, and may be collected on a monthly or quarterly basis as determined by the Board.

Section 6. Quorum for Any Action Authorized Under Sections 3 and 4. At the first meeting called, as provided in Section 3 and 4 of this Article, the presence at the meeting of members or of proxies entitled to cast sixty percent (60%) of all the votes of each class of membership shall constitute a quorum.

If the required quorum is not forthcoming at any meeting, subsequent meetings may be called, subject to the notice requirement set forth in sections 3 and 4 and the required quorum at any such subsequent meeting shall be one-half (1/2) of the required quorum at the next preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the next preceding meeting.

Section 7. Date of Commencement of Annual Assessments: Due Dates. The annual assessments provided for herein shall commence as to all Lots on the first day of the month following " the conveyance of the Common Area. The first assessment shall be adjusted according to the number of months then remaining in that fiscal year. The Board of Directors shall fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every owner subject thereto.

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

The Association, upon demand at any time, shall furnish a 17 pook1GOOrce 739 certificate in writing signed by an officer of the Association setting forth whether the assessments on a specified lot have been paid. A properly executed certificate of the Association as

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GOOrce 739 certificate in writing signed by an officer of the Association setting forth whether the assessments on a specified lot have been paid. A properly executed certificate of the Association as to the status of assessments on a Lot is binding upon the Association as of the date of its issuance.

Section 8. Effect of Nonpayment of Assessments: Remedies of the Association. Any assessments which are not paid when due shall be delinquent. If the assessments are not paid within thirty (30) days after the due date, assessments shall bear interest from the date of delinquency at the highest rate allowed by law, not to exceed twelve (12%) percent, and the Association may bring an action at law against the Owner personally obligated to pay the same, and interest, costs and © reasonable attorney's fees of any such action shall be added to the amount of such assessment. Owner by acceptance of a deed to a Lot, agrees that such delinquent amount, interest, costs and attorney fees are a lien against the Lot. If any law permits the foreclosure of such lien or other similar remedy as a method of enforcement of the Association's right to collect assessments, the Association may use such remedy. No Owner may waive or otherwise escape liability for the assessment provided for herein by non-use of the Common Area or abandonment of his Lot.

The Association shall be entitled to give written notice of any sixty (60) day delinquency in the payments or charges owed by the Owner of any Lot to a lender: which holds a mortgage or deed of trust on said Lot.

18 gox1GOOrnce 740 4 Section 9. Subordination of Lien to Mortgages. The lien of the assessments provided for herein shall be subordinate to the lien of any first mortgage. A sale or any transfer of any

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8 gox1GOOrnce 740 4 Section 9. Subordination of Lien to Mortgages. The lien of the assessments provided for herein shall be subordinate to the lien of any first mortgage. A sale or any transfer of any Lot shall not affect the assessment liens; provided, however, that the sale or transfer of any Lot pursuant to foreclosure of a first mortgage or any proceeding in lieu of foreclosure thereof, shall extinguish the lien of such assessments as to payment which became due prior to such sale or transfer. No sale or transfer shall relieve such Lot from the liability for any assessment thereafter becoming due or from the lien thereof.

Section 10. Two Month's Assessment _to be Collected at Closing. At the initial closing of each sale of a Lot, a sum equal to the total assessment for such Lot for the succeeding two months shall become due and payable to the accounts of the Association to ensure that the Association will have sufficient funds to meet. unforeseen expenditures. This contribution shall not be considered an advance against assessments to become due.

Section 11. Assessments of Declarant or Builder. Any provision herein to the contrary notwithstanding the assessment (whether special or annual) for each lot owned by Declarant or 4 a Builder on which there is no occupied dwelling shall be twenty-five percent (25%) of the assessment which is applicable | for a lot titled in a name other than Declarant. During such | time as the Declarant holds Class B membership, if the assessments collected are not sufficient to pay for the Common Expenses, the Declarant shall contribute funds to the Association to cover said shortage.

19 ets tert teat a et Lape ene yy teeter so0KLG6OOrxce 744 ARTICLE VII MAINTENANCE OF PROPERTIES Section 1. Maintenance of Common Area.

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hall contribute funds to the Association to cover said shortage.

19 ets tert teat a et Lape ene yy teeter so0KLG6OOrxce 744 ARTICLE VII MAINTENANCE OF PROPERTIES Section 1. Maintenance of Common Area.

Maintenance of the Common Area located within the Property shall be the responsibility of the Association.

Section 2. Maintenance of Lots. Each Owner at his sole expense shall maintain his Lot and residence in a neat, orderly, clean, well maintained condition that conforms to the atandards of the Downing Woods Subdivision. If in the opinion of the Board, an Owner fails to maintain his property in a neat and orderly condition or otherwise neglects his property and allows unsightly conditions to develop, the Board, after 30 days written notice to the Owner, may, but is not obligated to, take steps to remedy the problem. Such remedy may include, but shall not be limited to; the removal of debris or junked cars, the mowing of’ grass or cutting of brush and the painting or repair of structures located on the property. The Board may bill such Owner for all expenses incurred in correcting the problem. Every Owner by acceptance of a deed covenants to pay said bill.

Failure to pay said bill shall entitle the Association to a lien against said property and the Board may enforce said lien by action at law or any other legal means available to the Association.

In order to enable the Association to accomplish the foregoing, there is hereby reserved to the Association and its agents, the right and easement for unobstructed access over and 20 Pa SE IORI ABI ATE SAU ITE ES RSE TTS ERLE TEE Ti ESET steno at poorLGOOrace 742 upoh each Lot at all reasonable times to perform maintenance, repair and replacement as provided in this Article.

ARTICLE VIIT ARCHITECTURAL CONTROL & INSPECTION

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TEE Ti ESET steno at poorLGOOrace 742 upoh each Lot at all reasonable times to perform maintenance, repair and replacement as provided in this Article.

ARTICLE VIIT ARCHITECTURAL CONTROL & INSPECTION Except for initial improvements approved by Declarant, no construction, erection, or installation of any improvements, including, but not limited to, residences, outbuildings, fences, walls, mailboxes, screens (whether by plants or structures) and other structures, shall be undertaken upon the Property unless the plans and specifications therefor, showing the nature, kind, shape, height, materials and location of the proposed improvements shall have been submitted to an architectural committee composed of three (3) or more representatives appointed by the Board "Architectural Committee" and expressly approved in writing. No subsequent alteration or modification of any existing improvements nor construction, erection, or installation of additional improvements may be undertaken on any of the Property without prior review and expreas written approval of the Board.

In general, no exterior alterations or additions to buildings or garages shall be considered for approval unless such alterations or additions are in harmony with existing structures, as to style, shape, color and size. However, this section shall not be construed to mean that the Architectural Committee shall have to approve a proposed alteration or addition that meets the above criteria.

21 pookiGOOrace 743 In general, the construction or planting of fences, walls, screens, and other structures will not be permitted if in the opinion of the Architectural Committee, such construction or planting constitutes an unreasonable obstruction of the view of 4 @ another Owner. . /

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and other structures will not be permitted if in the opinion of the Architectural Committee, such construction or planting constitutes an unreasonable obstruction of the view of 4 @ another Owner. . / . In the event that the Architectural Committee, fails to approve or disapprove the design of any proposed improvements within forty-five (45) days after plans and specifications therefore have been submitted and received, approval will not be required, and the requirements of this Article will be deemed to have been fully met; provided, that the plans and specifications required to be submitted shall not be deemed to have been received by the Architectural Committee if they contain erroneous data or fail to present adequate information upon which the Architectural Committee can arrive at a decision. , The Architectural Committee shall have the right, at its election, but shall not be required, to enter upon any of the Property during site preparation or construction, erection, or @ installation of improvements to inspect the work being undertaken and to determine that such work is being performed in conformity with the approved plans and specifications and in a good and workmanlike manner, utilizing approved methods and good quality materials.

standards for automatic approval of minor or routine alterations { The Board of Directors may adopt guidelir...s or without the need for approval by the Architectural Committee.

pox GOOrnse 744 ARTICLE IX RULES AND REGULATIONS Section 1. Common Area The Board of Directors of, the Association shall have the power to formulate, amend, publish, and enforce reasonable rules and regulations concerning the use and enjoyment of the Common Area which are not a part of any Lot.

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of, the Association shall have the power to formulate, amend, publish, and enforce reasonable rules and regulations concerning the use and enjoyment of the Common Area which are not a part of any Lot.

Such rules and regulations, along with all policy resolutions and policy actions taken by the Board of Directors, shall be recorded in the books of the Association which shall be maintained in a place convenient to the owners and available to them for inspection during normal business hours.

Section 2. Rules and Re lations for Parking of vehicles. The Board of Directors of the Association shall have the power to formulate, publish, amend and enforce reasonable rules and regulations concerning the parking of any type of vehicle on the Property, including Common Area. Said rules may provide, without limitation, the following: (a) A definition of a "yecreational- vehicle" and regulations covering the parking of recreational vehicles on public streets. .

(b) That campers, planes, boats, trailers, trucks, and commercia). vehicles of any kind that the Board designates cannot be parked in the Common Area, in the driveway or front yard of any dwelling or parked on any public or private street in the Property, nor shall any such vehicle or equipment be parked for storage in the side or rear yard of any residence unless completely concealed from public view.

23 | i pooK 16 OOrssr 745 (c) Limitations on the period of time and extent to which a motor vehicle may be repaired on the premises, and that all motor vehicles parked on public or private streets or in the Common Area are to have valid license plates, ARTICLE X PROTECTIVE COVENANTS Section 1. Land Use. No Lot shall be used except for single family residential purposes, except that Declarant and the

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the Common Area are to have valid license plates, ARTICLE X PROTECTIVE COVENANTS Section 1. Land Use. No Lot shall be used except for single family residential purposes, except that Declarant and the Builders may maintain temporary offices, and sale models on said Lots. If more than three (3) people reside on any Lot and if those in excess of three (3) are not related to any of the three (3) by blood, marriage, or adoption, such residency shall not be deemed a single-family. Provided, however, nothing herein shall prevent the conversion of portions of Lots to public or private streets as approved by the City of Durham, if such approval is’ required by its ordinances.

Section 2. Lot Size. The lay of the Lots as shown on subdivision plats to be recorded shall be substantially adhered to; provided, however, that with the prior written approval of the Declarant, its successors and assigns, or the Architectural Committee and the appropriate governmental authority, the size and shape of any Lot may be altered, provided that no Lot or group of Lots may be resubdivided se as to produce a greater number of Lots than that allowed by the applicable zoning laws in force at the time of said change. More than one Lot may be used for the construction of one dwelling provided the location of any structure permitted thereon is approved in writing by the 24 goo GOOrace 746 4 Architectural Committee or the Declarant, its successors or assigns. Except as provided in this paragraph, no structure shall be erected, altered, placed, or permitted to remain on any Lot other than one detached single family dwelling, not to exceed three stores in height. All structures shall comply with the applicable subdivision and zoning restrictions of the appropriate governmental authority.

Pages 24–25

ne detached single family dwelling, not to exceed three stores in height. All structures shall comply with the applicable subdivision and zoning restrictions of the appropriate governmental authority.

Section 3. Dwelling Size. No residential structure, which has a minimum area of less than 1,800 square feet of heated area, exclusive of decks, porches, basement and garage, shall be erected or placed on any Lot.

Section 4. Building Location. No building on a Lot shall be located nearer to the front Line than 25 feet, provided, however, that on a Lot bounded by two streets, a buliding may be located not nearer than 20 feet to one street if same is at least 25 feet from the other street. No building shall be located nearer than 8 feet to an interior lot line, nor nearer than 12.5 feat to any rear lot line.

Section 5. Temporary Structures. All buildings and structures erected upon said property shall be of new construction. No structures of a temporary character, trailer, be used on any portion of any Lot at any time as a residence, basement, tent, shack, garage, barn or other out-building shall | either temporarily or permanently. | Section 6. Animals. No animals, livestock or poultry \ of any kind shall be raised, bred, or kept on said Lots except that not more than three dogs, cats, or other household pets may 25 pookK16OOrace 747 be kept provided they are not kept, bred or maintained for any commercial purpose.

Section 7. Signs. No advertising signs, billboards, unsightly objects or nuisances shall be erected, placed or permitted to remain on -the Lots except for one "for sale" or "for rent" sign of not more than five (5) foot square and signs, billboards, etc. as necessary during the construction of “improvements on the Property.

Pages 25–26

emain on -the Lots except for one "for sale" or "for rent" sign of not more than five (5) foot square and signs, billboards, etc. as necessary during the construction of “improvements on the Property.

Section 8. Garbage Cans, Clotheslines. All garbage cans, service yards, wood piles or storage piles and clotheslines shall be kept screened by adequate planting or other means approved by the Architectural Committee so as to conceal them from view of neighboring dwellings subject to this Declaration.

All garbage, trash, or rubbish shall be regularly removed from ‘the premises and shall not be allowed to accumulate therein. No equipment, garbage cans, woodpiles, service yards, or storage piles shall be placed in any front yard of any dwelling.

Section 9. Television Antennas, Discs, Etc. No television antennas, radio aerials, reception discs or similar objects shall be located on any building, said objects may only be allowed in rear yards screened by adequate planting or other means approved by the Architectural Committee.

Section 10. Quiet Enjoyment. No obnoxious or offensive activity shall be carried on upon the Lots, nor shall anything be done which may be or may become a nuisance or annoyance to the neighborhood.

26 pox 1GOOrace 748 Section 11. Waiver. Upon a showing that a waiver is necassary to prevent. undue hardship and that such waiver would not adversely affect adjacent. Lots or violate any project approvals obtained from applicable governmental authorities, the Architectural Committee may waive a violation of the provisions of this Article provided such violation is not greater than ten percent (10%) of the applicable standard.

ARTICLE XI RIGHTS OF INSTITUTIONAL LENDERS "Institutional Lender" or "institutional Lenders", a8

Pages 26–27

this Article provided such violation is not greater than ten percent (10%) of the applicable standard.

ARTICLE XI RIGHTS OF INSTITUTIONAL LENDERS "Institutional Lender" or "institutional Lenders", a8 the terms are used herein, shall mean and refer to banks, savings and loan associations, insurance companies, other reputable mortgage lenders and insurers or guarantors of first mortgages.

So long as any Institutional Lender or Institutional Lenders shall hold any mortgage upon any Lot, or shall be the owner of any Lot, such Institutional Lender or Institutional Lenders shall have the following rights: A. To be furnished with at least one copy of the Annual Financial Statement and Report of the Association, prepared by an independent accountant (one not employed by Declarant) designated by the Association, including a detailed statement of annual carrying charges or income collected and operating expenses, such Financial Statement and Report to be furnished within ninety (90) days following the end of its fiscal year.

B. To be given notice by the Association of the call of any meeting of the membership to be held for the purpose of 27 | | ‘ pooriGOOrace 749 considering any proposed action that requires the consent of a specified percentage of mortgage holders which notice shall state.

the nature of the action being proposed, and to be given permission to designate a representative to attend all such meetings.

c. To be given notice of any 60-day delinquency in the payment of assessments by any owner of a Lot encumbered by a mortgage held by the Institutional Lender or Institutional Lenders, such notice to be given in writing and to be sent to the principal office of such Institutional Lender or Institutional Lenders, or to the place which it or they may designate in

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nstitutional Lenders, such notice to be given in writing and to be sent to the principal office of such Institutional Lender or Institutional Lenders, or to the place which it or they may designate in writing to the Association.

D. To be given notice by the Association if any portion of the Common Area or the Lot securing its mortgage is made the subject matter of any condemnation or eminent domain ° proceeding or is otherwise sought to be acquired by a condemning authority, or sustains a casualty loss.

E. Receive written notice of a lapse, cancellation or material modification of an insurance policy or fidelity bond maintained by the Association.

Whenever any Institutional Lender desires the benefits of the provisions of this section, such lender shall serve written notice of such fact upon the Association by registered mail or certified mail addressed to the Association and sent to its address identifying the Lot upon which any such Institutional Lender or Institutional Lenders hold any mortgage or mortgages, or identifying any Lot owned by them, or any of them, together 28 ene SUR rene ety ier.

RR a PTR OTT TOM tha aie SC TMASH coset oe good GOOrace 750 with sufficient pertinent facts to identify any mortgage or mortgages which may be held by it or them, and which notice shall degignate the place to which notices are to be given by the, Association to such Institutional Lender. The Association may require the payment of expenses incurred in preparing copies and mailing of documents to first mortgage holders pursuant to this Article.

The Association is required to make available to Owners and Institutional Lenders current copies of the Declaration, bylaws of the Association, other rules concerning the Property,

Pages 28–29

nt to this Article.

The Association is required to make available to Owners and Institutional Lenders current copies of the Declaration, bylaws of the Association, other rules concerning the Property, and the books, records, financial statements and insurance polices of the Association. "Available" means available for inspection upon request, during normal business hours or under other reasonable circumstances.

ARTICLE XII PAYMENT OF TAXES AND ASSESSMENTS ON COMMON AREA The Board of Directors of the Association shall provide for the payment of any taxes or assessments levied on the Common Area by the appropriate governmental authority. Said payments ghall be paid by the Association as Common Expenses from the annual assessment.

ARTICLE XIII EASEMENTS Section 1. Walkways, Roadways and Utilities. All of the Property, including Lots and Common Area, shall be subject to such easements for walkways, roadways, water lines, irrigation 29 poK16O0Ornce 754 systems, sanitary sewers, storm drainage facilities, gas lines, telephone and electric power lines, television antenna lines, cable television and other public utilities as shall be established prior to subjecting the Property to this Declaration by the Declarant. The.Declarant may subject any portion of the Property to additional easements prior to the conveyance of such Property. Furthermore, easements for installation and maintenance of utilities and drainage facilities are reserved over the rear ten feet of each Lot. In’ the event that the Owner of any Lot shall acquire land adjacent to and in the rear of such Lot, such Lot owner may relocate the easement herein established over the rear line to conform to the increase in size of his Lot subject to the approval of the appropriate governmental authority

Pages 29–30

such Lot, such Lot owner may relocate the easement herein established over the rear line to conform to the increase in size of his Lot subject to the approval of the appropriate governmental authority if required by its ordinances, and provided that alteration in drainage does not thereby adversely affect the drainage of any’ other Lot or interfere with the right of the Owners of other property within this subdivision to services rendered by the easement herein created. The Association shall have the power and authority to grant and to establish in, over, upon, and across the Common Area conveyed to it such further easements as are requisite for the convenient use, enjoyment, maintenance or operation of the Property.

Section 2. Easements Appurtenant to Lots. All Common Area shall be subject to an easement in favor of every Lot to which they are adjacent or which they are designated to serve and shall be deemed appurtenant to each such Lot, whereby the Owner ef each such Lot shall be entitled to use them as a means of 30 <A O Cire oe es ono ae sooKLGOOrace 752 pedestrian ingress, egress and regress and such other uses as shell have been designated. This section shall not be construed to prevent the Association from subjecting the Common Area to an acdess easement for ingress and egress and an easement for parking areas to serve any amenities which may be located in the Common Area. Such easements shall be superior to:the lien of every mortgage or deed of trust.

Section 3. Emergencies. Every Lot shall be subject to an easement for entry by the Association for the purpose of correcting, repairing, or alleviating any emergency’ condition which arises upon any Lot and that endangers any Building or portion of the Common Area.

Section 4. Easement for Governmental Agencies. An

Pages 30–31

orrecting, repairing, or alleviating any emergency’ condition which arises upon any Lot and that endangers any Building or portion of the Common Area.

Section 4. Easement for Governmental Agencies. An easement is hereby established over the Common Area for the benefit of applicable governmental agencies, public utility .

companies and public service agencies as necessary for setting, removing and reading of meters, replacing and maintaining water, sewer and drainage facilities, electrical, telephone, gas and cable antenna lines, fire fighting, garbage collection, postal delivery, emergency and rescue activities and law enforcement activities.

ARTICLE XIV GENERAL PROVISIONS Section 1. Enforcement. The Association, or any Owner, shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens, and charters now or hereafter imposed by the 31 sooK1GOOrace 753 provisions of this Declaration. Failure by the Association or by any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter.

erability. Invalidation of any one of ection 2. Se these covenants or restrictions by judgment or court order shall in no way affect any other provisions, which shall remain in full force and effect.

Section 3. Duration. The covenants, conditions and restrictions of this Declaration shall run with and bind the land for a term of thirty (30) years from the date this Declaration is recorded, after which time they shall be automatically extended for an unlimited number of successive periods of ten (10) years each.

Section 4. Amendment. This Declaration may be amended by the Association through its Board provided that the proposed

Pages 31–32

lly extended for an unlimited number of successive periods of ten (10) years each.

Section 4. Amendment. This Declaration may be amended by the Association through its Board provided that the proposed amendment receives the written assent of Owners of sixty seven percent (67%) of the Lot Owners which have been made subject to this. Declaration.

Section 5. Certification of Amendment. If any amendment to these covenants, conditions and restrictions is executed, each such amendment shall be delivered to the Board of Directors of the Association. Thereupon, the Board of Directors, shall, within thirty (30) days do the following: (a) Reasonably assure itself that the amendment has been executed or approved by the Owners of the required number of Lots. (For this purpose, the Board may rely on its 32 noo 6OOrnce 754 roster of members and shall not be required to cause any title to any Lot to be examined); {b) Attach to the amendment a certification as to itis validity, which certification shall be executed by the Agsociation in the same manner that deeds are executed. The fellowing form of certification 18 suggested: CERTIFICATION OF VALIDITY OF AMENDMENT TO COVENANTS, CONDITIONS AND RESTRICTIONS OF DOWNING WOODS By authority of its Board of Directors, Downing Woods Homeowners Association, Inc. hereby certifies that the foregoing instrument has been duly approved by the Owners entitled to cast 67 percent of the votes of the entire membership of Downing Woods and is, therefore, & valid amendment to the existing covenants, conditions and restrictions of Downing Woods.

DOWNING WOODS HOMEOWNERS ASSOCIATION, INC.

BY: President ATTEST: Secretary (c) Immediately, and within the thirty (30) day period aforesaid, cause the amendment to be recorded in the Durham County Registry.

Pages 32–33

G WOODS HOMEOWNERS ASSOCIATION, INC.

BY: President ATTEST: Secretary (c) Immediately, and within the thirty (30) day period aforesaid, cause the amendment to be recorded in the Durham County Registry.

All amendments shall be effective from the date of recordation in the Durham County Registry. provided, however, that no such amendment shall be valid until it has been indexed in the name of the Downing Woods Homeowners 33 A ersongeR ye cre ota i \ i { pooKAGOOrsce 755 Association. When any instrument purporting to amend the covenants, conditions and restrictions has been certified by the Board of Directors, recorded and indexed as provided by this Section, it shall be conclusively presumed that such | instrument constitutes -a valid amendment as to all persons thereafter purchasing any Lots in Downing Woods.

Section 6. Restrictions Against Association Entering Into Long Term Contract While Declarant in control ‘ of Board of Directors. Until such time as the total votes outstanding in Class A membership equal the total votes outstanding in Class B membership, or July lst 2000, whichever occurs first, the Association is not bound either directly or indirectly to contracts or leases (including a management contract) unless there is a right to termination of any such contract or lease, without cause, which is exercisable without penalty at any time after the occurrence of one of the above events, upon not more than 90 days notice to the other party.

Section 7. Underground Utilities and Street Lighting.

Declarant reserves the right to subject the Property to a contract with the power & light company servicing the area for the installation of underground electric cables and the installation of street lighting, either or both of which may require a continuous monthly

Pages 33–35

with the power & light company servicing the area for the installation of underground electric cables and the installation of street lighting, either or both of which may require a continuous monthly charge to the Owner of each Lot. Upon acceptance of a deed to a Lot, each Owner agrees to pay the power & light company 34 sok 16 0Ornce 756 servicing the area the continuing monthly payment therefore.

as approved by the North Carolina Utilities Commission, or its successors or other appropriate governmental authority.

Declarant further reserves the right to connect to each unit necessary water and sewer service which may require a continuous monthly charge to the owner of the Lot.

Upon acceptance of a deed to the Lot each Owner agrees to pay said continuing monthly charge, if any.

Section 8. Responsibility of Governmental Authority. In no case shall the applicable governmental authority be responsible for failing to provide any emergency or regular fire, police or other public service to Downing Woods or its occupants when such failure is due to the lack of access to such areas due to inadequate design or construction, blocking of access routes, or any other factor within the control of the Declarant, Builders, Association ; or Occupants.

IN WITNESS WHEREOF, the undersigned, being the Declarant herein, has caused this instrument to be executed in its corporate name by its duly authorized officers and its seal to be hereunto affixed by authority of the Board of Directors, the day and year first above written.

Attested by: President goox1GOOrace 757 NORTH CAROLINA WAKE COUNTY I, the undersigned, a Notary Public in and for the said State and County, do hereby certify that Kaye mM. Horton personally appeared before me this day and acknowledged that She is _ hesitant Secretary

, the undersigned, a Notary Public in and for the said State and County, do hereby certify that Kaye mM. Horton personally appeared before me this day and acknowledged that She is _ hesitant Secretary of Hoying-Huff, Inc., a corporation, and that by authority duly given as the act of the corporation, the foregoing instrument was signed in its name by its _ Vie President, sealed with its corporate seal, and attested by WITNESS my hand and notarial seal this the 2th day of June, 1990.

_shwbcoo Way) _ Stu l My Commission Expires: \2[2a143 AMIE C.D NOTARY PIXON WAKE Cou!

(NOTARIAL SEAL OR STAMP) + Commassion oie tsb/tuesl1/dhbl State of North Carolina-Durham County* BOOK I PAG E - ANotary (Notaries) Public for the Ocsignated Governme!

units is (are) cortitied ta be gavrect.

90 JUN 27 PA 4 26 rhis the 1 dayot Ruth C. Garrett RUT OF Tes Register of Deads ee oarett ™ ela RURKAM COUNTY, N.C.

36 » dsl EXHIBIT A . ty Being all of that 7.94174 acres, including but not limited to: Lots 1-20, all that area designated "Open Space", and the right of way of all roadways shown, all as shown on that map entitled "Downing Woods" recorded in Plat Book 123, Page 73 of the Durham County Registry.