Declaration OF Covenants, Conditions and Restrictions FOR "447 4-4480 OREGON STREET"

Recording Requested By:
When Recorded Mail To:
CCI
A TI: JEFFREY L. BROWN
REF: 4474-4480 OREGON STREET
7777 ALVARADO RD STE 615
LA MESA CA 91941-3649
www.subdivision.net
SPACE ABOVE FOR RECORDER'S USE
INDEX AS "CC&R's"
DECLARATION
OF
COVENANTS, CONDITIONS AND RESTRICTIONS
FOR
"4474-4480 OREGON STREET"
a Condominium Project
• Dec_ 4474-BO_OregonSt.doe DRAFT(9)r2:050806

TABLE OF CONTENTS
RECITALS 1
1.1. OWNERSHIP OF PROPERTY................................................................................ 1
1.2. ESTABLISHMENT OF COMMON INTEREST DEVELOPMENT............................ 1
1.3. DESCRIPTION OF PROJECT ................................................................................ 1
1.3.1. NUMBER OF UNITS ......................................................................... 1
1.3.2. COMMON AREA .............................................................................. 1
1.4. CONDOMINIUM PLAN ............................................................................................ 1
1.5. ESTABLISHMENT OF ASSOCIATION ................................................................... 1
1.6. CONDOMINIUM OWNERSHIP ............................................................................... 2
DECLARATION 2
DEFINITIONS. 2
3.1. APPLICABLE LAW .................................................................................................. 2
3.2. ARTICLES ............................................................................................................... 2
3.3. ASSOCIATION; HOMEOWNERS ASSOCIATION ................................................. 2
3.4. BOARD .................................................................................................................... 2
3.5. BYLAWS .................................................................................................................. 2
3.6. CITY ......................................................................................................................... 2
3.7. COMMON AREA ..................................................................................................... 3
3.8. COMMON EXPENSE AREAS ................................................................................. 3
3.9. COMMON EXPENSES ............................................................................................ 3
3.10. COMMUNITY ........................................................................................................... 4
3.11. CONDOMINIUM ...................................................................................................... 4
3.12. CONDOMINIUM BUILDING .................................................................................... 4
3.13. CONDOMINIUM DOCUMENTS and/or PROJECT DOCUMENTS ........................ 4
3.14. CONDOMINIUM PLAN; PLAN ................................................................................ 4
3.15. COUNTY .................................................................................................................. 4
3.16. COUNTY RECORDER. ........................................................................................... 4
3.17. DECLARANT........................................................................................................... 4
3.18. DECLARATION; CC&RS ......................................................................................... 4
3.19. DWELLING; RESIDENCE ....................................................................................... 5
3.20. ELIGIBLE INSURER, GUARANTOR. ..................................................................... 5
3.21. ELIGIBLE MORTGAGE HOLDER. .......................................................................... 5
3.22. EMERGENCY .......................................................................................................... 5
3.23. EXCLUSIVE USE COMMON AREA ....................................................................... 5
3.24. FHA .......................................................................................................................... 5
3.25. FHLMC ..................................................................................................................... 5
3.26. FIRST MORTGAGE ................................................................................................ 5
3.27. FIRST MORTGAGEE .............................................................................................. 6
3.28. FNMA ....................................................................................................................... 6
3.29. FIRST MORTGAGE ................................................................................................ 6
3.30. IMPROVEMENT...................................................................................................... 6
3.31. INCORPORATOR ................................................................................................... 6
3.32. INSTITUTIONAL MORTGAGEE ............................................................................. 6
3.33. INVITEE ................................................................................................................... 6
3.34. LIVING UNIT, UNIT, CONDOMINIUM UNIT; LIVING AREA. ................................. 6
3.35. MAP; SUBDIVISION MAP ....................................................................................... 6
3.36. MEMBER ................................................................................................................. 7
3.37. MORTGAGE ............................................................................................................ 7
3.38. MORTGAGEE ......................................................................................................... 7
4474~4480 OREGON STREET

DECLARATION A Dec_4474·80_0regonSt.doc
3.39. MORTGAGOR ......................................................................................................... 7
3.40. OCCUPANT ............................................................................................................. 7
3.41. OWNER ................................................................................................................... 7
3.42. PERSON .................................................................................................................. 7
3.43. PROJECT; CONDOMINIUM PROJECT. ................................................................ 7
3.44. PROPERTY ............................................................................................................. 7
3.45. RETAIL BUYER ....................................................................................................... 7
3.46. RULE CHANGE ....................................................................................................... 7
3.47. RULE; OPERATING RULE ..................................................................................... 8
3.48. SEPARATE INTEREST........................................................................................... 8
3.49. SOUND AITENUATION; FLOORING SPECIFICATIONS ..................................... 8
3.49.1. SOUND ATTENUATION ................................................................... 8
3.49.2. FLOORING SPECIFICATIONS ........................................................ 9
3.50. VA ............................................................................................................................ 9
OWNERSHIP 10
4.1. OWNERSHIP OF CONDOMINIUMS .................................................................... 10
4.2. NO SEPARATION OF INTERESTS ...................................................................... 10
4.3. PARTITION ............................................................................................................ 10
4.4. POWER OF ATTORNEY ....................................................................................... 10
5. EASEMENTS 10
5.1. NON¥EXCLUSIVE EASEMENTS FOR COMMON AREAS .................................. 10
5.2. DECLARANT AND ASSOCIATION EASEMENTS ............................................... 11
5.2. 1. OPERATION AND MAINTENANCE ............................................... 11
5.2.2. UTILITIES; THIRD PARTIES .......................................................... 11
5.2.3. ADDITIONAL DECLARANT EASEMENTS .................................... 11
5.3. OWNERS' RIGHTS, DUTIES AND EASEMENTS FOR UTILITIES ..................... 11
5.4. ENCROACHMENT................................................................................................ 12
5.5. DECLARANT'S NON-EXCLUSIVE EASEMENTS ................................................ 12
5.6. DECLARATION SUBJECT TO EASEMENTS ...................................................... 12
6. DEVELOPMENT RIGHTS 12
6.1. LIMITATION OF RESTRICTIONS ......................................................................... 12
6.2. RIGHTS OF ACCESS AND COMPLETION OF IMPROVEMENTS ..................... 12
6.2.1. COMMON AREA ACCESS ............................................................. 12
6.2.2. TEMPORARY EXCLUSIVE EASEMENT(S) FOR COMPLETION OF
IMPROVEMENTS ........................................................................... 13
6.2.3. CONSTRUCTION AND MARKETING IMPROVEMENTS ............. 13
6.2.4. GRANT EASEMENTS .................................................................... 13
6.2.5. SIZE AND APPEARANCE OF PROJECT.. .................................... 14
6.3. MARKETING RIGHTS ........................................................................................... 14
6.3.1. GENERAL RIGHTS ........................................................................ 14
6.3.2. AGREEMENT FOR EXTENDED USE ........................................... 14
6.4. DECLARANT RESTORATION OBLIGATION ....................................................... 14
6.5. ASSIGNABILITY OF RIGHTS ............................................................................... 15
6.6. AMENDMENT ........................................................................................................ 15
7. PERFORMANCE BOND 15
~ THE ASSOCIATION 15
8.1. THE ORGANIZATION ........................................................................................... 15
8.2. COMMENCEMENT OF ASSOCIATION ............................................................... 15
4474-4480 OREGON STREET

DECLARATION ii A Dec_4474·80_0regonSt.doc
8.3. INTERIM PERIOD ................................................................................................. 16
8.4. POWERS AND DUTIES OF THE ASSOCIATION ................................................ 16
9. MEMBERSHIP, VOTING, FIRST MEETING 16

9.1. MEMBERSHIP IN GENERAL................................................................................ 16
9.2. CLASSES OF VOTING RIGHTS ........................................................................... 16
9.2.1. CLASS A ......................................................................................... 16
9.2.2. CLASS B......................................................................................... 16
9.3. COMMENCEMENT OF VOTING RIGHTS ............................................................ 17
9.4. APPROVAL OF MEMBERS .................................................................................. 17
9.4.1. VOTE OF MAJORITY..................................................................... 17
9.4.2. WRITING ......................................................................................... 17
9.4.3. COMBINATION OF VOTES AND WRITING .................................. 17
9.5. FIRST MEETING OF THE ASSOCIATION ........................................................... 17
9.6. CLASS A MEMBERS' SELECTION OF ASSOCIATION DIRECTORS ................ 17
9.7. NO PERSONAL LIABILITY OF BOARD MEMBERS ............................................ 17
10. RIGHTS, POWER AND DUTIES OF ASSOCIATION AND BOARD

18
10.1. SUSPEND RIGHTS OF MEMBERS ..................................................................... 18
10.2. DEDICATE OR GRANT EASEMENTS ................................................................. 18
10.3. BORROW FUNDS ................................................................................................. 18
10.4. ASSESSMENTS .................................................................................................... 18
10.5. RIGHT OF ENFORCEMENT; PENALTIES; NOTICE AND HEARING ................. 18
10.5.1. ENFORCEMENT ACTIONS ........................................................... 18
10.5.2. PENALTIES AGAINST MEMBERS ................................................ 19
10.5.3. RULES AND REGULATIONS ........................................................ 19
10.6. ENTRY BY ASSOCIATION ................................................................................... 20
10.7. POWER OF BOARD TO DEFINE AND INTERPRET ........................................... 20
11. RIGHTS OF OWNERS 20

11.1. RIGHTS OF OWNERS .......................................................................................... 20
11.2. RIGHT OF ACCESS AND USE OF DWELLING ................................................... 20
11.3. RIGHT TO THE USE OF COMMON AREA. ......................................................... 21
11.4. NOTICE AND HEARING ....................................................................................... 21
11.5. DELEGATION OF USE ......................................................................................... 21
ASSESSMENTS 21
12.1. COVENANT FOR ASSESSMENTS ...................................................................... 21
12.2. FUNDS HELD IN TRUST...................................................................................... 22
12.3. PURPOSE OF ASSESSMENTS ........................................................................... 22
12.4. REGULAR ASSESSMENTS ................................................................................. 22
12.4.1. PAYMENT OF REGULAR ASSESSMENTS .................................. 22
12.4.2. BUDGETING ................................................................................... 22
12.5. RESTRICTIONS OF TAX EXEMPTION ................................................................ 22
12.6. NON~WAIVER OF ASSESSMENTS ..................................................................... 23
12.7. SPECIAL ASSESSMENTS .................................................................................... 23
12.8. CAPITAL IMPROVEMENT ASSESSMENT .......................................................... 23
12.9. SINGLE BENEFIT ASSESSMENT.. ...................................................................... 23
12.10. ENFORCEMENT ASSESSMENTS ....................................................................... 24
12.11. UNIFORM RATE OF ASSESSMENT.. .................................................................. 24
12.12. EXCESSIVE ASSESSMENTS OR FEES ............................................................. 24
12.13. COMMENCEMENT OF ASSESSMENTS; DUE DATES ...................................... 24

DECLARATION iii A Dec_4474-BO_OregonSt.doc
12.14. NOTICE AND ASSESSMENT INSTALLMENT DUE DATES ............................... 24
12.15. FAILURE TO FIX ASSESSMENTS ....................................................................... 25
12.16. LIMITATIONS ON ASSESSMENTS ...................................................................... 25
12.17. NOTICE OF ASSESSMENT INCREASE .............................................................. 26
12.18. REDUCTION OR ABATEMENT OF REGULAR ASSESSMENTS ....................... 26
12.19. NO OFFSETS ........................................................................................................ 26
12.20. DELINQUENCIES; LATE PENALTIES; INTEREST ON ASSESSMENTS ........... 26
12.21. DEBT OF THE OWNER ........................................................................................ 26
12.22. ASSOCIATION POLICIES AND PRACTICES RE: DEFAULTS ........................... 27
12.22.1. ASSESSMENT DEFAULTS ............................................................ 27
12.22.2. MONETARY PENALTIES AND FEES ............................................ 28
12.23. COLLECTION OF ASSESSMENTS; LIENS ......................................................... 29
12.23.1. RIGHT TO ENFORCE ASSESSMENTS ........................................ 29
12.23.2. NOTICE TO OWNER PRIOR TO LIEN OF ASSESSMENT .......... 29
12.23.3. LIEN OF ASSESSMENT ................................................................ 29
12.23.4. NOTICE TO OWNER AFTER LIEN OF ASSESSMENT ................ 30
12.23.5. PAYMENTS UNDER PROTEST. ................................................... 30
12.23.6. RELEASE OF LIEN ........................................................................ 30
12.23.7. LIEN ENFORCEMENT; FORECLOSURE PROCEEDINGS .......... 30
12.24. ADDITIONAL CHARGES ...................................................................................... 30
12.24.1. ATTORNEY'S FEES ....................................................................... 31
12.24.2. LATE CHARGES ............................................................................ 31
12.24.3. COSTS OF SUIT............................................................................ 31
12.24.4. INTEREST...................................................................................... 31
12.24.5. OTHER ............................................................................................ 31
12.25. PRIORITY OF THE LIEN ....................................................................................... 31
12.26. WAIVER OF EXEMPTIONS .................................................................................. 31
12.27. TAXATION AGAINST THE COMMON AREA. ...................................................... 31
12.28. PERSONAL LIABILITY OF OWNER ..................................................................... 32
12.29. TRANSFER OF CONDOMINIUM .......................................................................... 32
12.30. CAPITALIZATION REQUIREMENT ...................................................................... 32
12.31. FINANCIAL ACCOUNTS ....................................................................................... 32
12.32. USE OF RESERVE FUNDS .................................................................................. 33
USE RESTRICTIONS 33
13.1. USE OF CONDOMINIUMS ................................................................................... 33
13.2. LEASE OF DWELLING ......................................................................................... 33
13.2.1. REQUIREMENTS OF ALL LEASES .............................................. 33
13.2.2. FAILURE OF TENANT TO COMPLY WITH PROJECT
DOCUMENTS ................................................................................. 33
13.3. INSURABILITY ...................................................................................................... 34
13.4. PETS ...................................................................................................................... 34
13.5. INTERFERENCE OF OTHER OCCUPANTS ....................................................... 35
13.6. SOUND ATTENUATION; HARD SURFACE FLOORING ..................................... 35
13.7. VIBRATION$ ......................................................................................................... 36
13.8. SIGNS .................................................................................................................... 36
13.8.1. ON THE COMMON AREA .............................................................. 36
13.8.2. FROM A CONDOMiNiUM UNiT ..................................................... 36
13.9. EXTERIOR LIGHTING .......................................................................................... 36
13.10. ANTENNAS, SATELLITE DISHES ........................................................................ 36
13.11. REMODELING THE COMMON AREA .................................................................. 37
13.12. POST TENSION SLABS ....................................................................................... 37
13.13. OFFENSIVE ACTIVITIES AND CONDITIONS ..................................................... 37
13.14. GARBAGE AND REFUSE DISPOSAL .................................................................. 37

DECLARATION iv • Dec_4474-BO_OregonSt.doc
13.15. WOOD OR STORAGE PILES ............................................................................... 38
13.16. FENCES; WALLS .................................................................................................. 38
13.17. CLOTHES LINES .................................................................................................. 38
13.18. BALCONY, PATIO AND LAUNDRY AREA. .......................................................... 38
13.19. WINDOW COVERINGS ........................................................................................ 38
13.20. WATER QUALITY PROTECTION ......................................................................... 38
13.21. BOARD PERMITTED TO EXPAND VERTICAL LIMITS ....................................... 39
13.22. NO CHANGES IN PLUMBING WITHOUT ASSOCIATION APPROVAL .............. 39
13.23. CAR MAINTENANCE AND POWER EQUIPMENT .............................................. 39
13.23.1. CAR MAINTENANCE ..................................................................... 39
13.23.2. POWER EQUIPMENT. ................................................................... 39
13.24. USE OF COMMON AREA ..................................................................................... 39
13.25. EXCLUSIVE USE LICENSES ............................................................................... 40
13.26. INTERIOR OF CONDOMINIUMS; MODIFICATIONS; HANDICAPPED ACCESS.40
13.27. MERGING UNITS .................................................................................................. 41
13.28. EXCLUSIVE USE COMMON AREAS ................................................................... 41
13.29. VEHICLE RESTRICTIONS .................................................................................... 42
13.29.1. PROHIBITED VEHICLES ............................................................... 42
13.29.2. RESTRICTED VEHICLES ....................... ., ..................................... 42
13.29.3. PERMITTED VEHICLES ................................................................ 42
13.29.4. CONSTRUCTION AND SALES VEHICLES ................................... 42
13.30. GARAGES ............................................................................................................. 42
13.31. STORAGE AREAS; STORAGE UNITS ................................................................ 43
13.32. TOWING ................................................................................................................ 43
13.33. LIABILITY FOR DAMAGE TO COMMON AREA ................................................. 43
ARCHITECTURAL AND DESIGN CONTROL 43

14.1. GENERAL. ............................................................................................................. 43
14.2. RESTRICTED ACTIVITY ....................................................................................... 44
14.3. PLAN SUBMISSION; REVIEW .............................................................................. 44
14.4. BOARD APPROVAL. ............................................................................................. 44
14.5. APPROVED CONDITIONS ................................................................................... 44
14.6. EXEMPTED FROM REVIEW ................................................................................ 45
14.7. DUTIES .................................................................................................................. 45
14.8. COMPENSATION .................................................................................................. 45
14.9. FEE FOR REVIEW ................................................................................................ 45
14.10. ARCHITECTURAL STANDARDS ......................................................................... 45
14.11. DESIGN CRITERIA............................................................................................... 46
14.12. VARIANCES .......................................................................................................... 46
14.13. ESTOPPEL CERTIFICATE ................................................................................... 46
14.14. LIABILITY ............................................................................................................... 46
14.15. ENFORCEMENT................................................................................................... 4 7
14.16. NON-COMPLIANCE WITH LAWS ........................................................................ 47
14.17. APPROVAL BY GOVERNMENTAL JURISDICTION ............................................ 47
15. RESPONSIBILITIES OF MAINTENANCE 47

15.1. GENERAL. ............................................................................................................. 47
15.2. OWNER RESPONSIBILITY .................................................................................. 47
15.3. OWNER RESPONSIBILITY OF EXCLUSIVE USE COMMON AREAS ............... 48
15.4. DAMAGE FROM WITHIN A UNIT......................................................................... 48
15.5. OWNER'S FAILURE TO MAINTAIN; WILLFUL OR NEGLIGENT ACT. ............. .48
15.6. RESPONSIBILITY OF ASSOCIATION ................................................................. 48
15.7. UTILITY FACILITIES: OWNER'S RIGHTS AND DUTIES ..................................... 50
15.8. ASSOCIATION'S DUTIES REGARDING CERTAIN UTILITY FACILITIES .......... 50

DECLARATION v A Dec_4474-SO_OregonSt.doc
15.9. MOLD ..................................................................................................................... 50
15.10. ASSUMPTION OF MAINTENANCE OBLIGATIONS ............................................ 51
15.11. PROPERTY MANAGEMENT ................................................................................ 51
15.12. PROSPECTIVE MANAGING AGENTS ................................................................. 51
15.13. LANDSCAPE MANAGEMENT.............................................................................. 51
15.14. USE OF LICENSED CONTRACTORS; WORKFORCE; PERMITS ..................... 52
INSURANCE 52
16.1. MASTER INSURANCE POLICY ........................................................................... 52
16.1.1. FIRE HAZARD INSURANCE .......................................................... 52
16.1.2. PUBLIC LIABILITY INSURANCE ................................................... 52
16.1.3. DISHONEST ACTS; FIDELITY BOND ........................................... 52
16.1.4. WORKERS COMPENSATION INSURANCE ................................. 53
16.1.5. OTHER INSURANCE ..................................................................... 53
16.1.6. COVERAGE, AMOUNT AND TERM OF INSURANCE .................. 53
16.1.7. OWNER'S INSURANCE ................................................................. 53
16.1.8. FAILURE TO ACQUIRE ................................................................. 54
16.1.9. INSPECTION OF POLICIES .......................................................... 54
16.2. INSURANCE INFORMATION TO MEMBERS ...................................................... 54
16.2.1. GENERAL LIABILITY POLICY ....................................................... 54
16.2.2. DIRECTOR AND OFFICER LIABILITY COVERAGE ..................... 54
DAMAGE AND DESTRUCTION. 55

17.1. RESTORATION DEFINED .................................................................................... 55
17.2. INSURED CASUALTY ........................................................................................... 55
17.3. SUFFICIENT PROCEEDS .................................................................................... 55
17.4. INSUFFICIENT PROCEEDS ................................................................................. 55
17.4.1. ADDITIONAL SPECIAL ASSESSMENT ........................................ 56
17.4.2. ALTERNATIVE RECONSTRUCTION ............................................ 56
17.4.3. PURCHASE OF UNITS OF AFFECTED OWNERS ....................... 56
17.4.4. SALE OF ENTIRE PROJECT.. ....................................................... 56
17.5. REBUILDING CONTRACT .................................................................................... 57
17.6. RIGHT TO PARTITION ......................................................................................... 57
17.7. MINOR REPAIR AND RECONSTRUCTION ......................................................... 57
17.8. BOARD'S ACTION ................................................................................................ 57
CONDEMNATION 58
18.1. ASSOCIATION AS ATTORNEY IN FACT.. ........................................................... 58
18.2. CONDEMNATION OF A SEPARATE INTEREST. ................................................ 58
18.3. INTERIOR DAMAGE OF A UNIT.......................................................................... 58
18.4. CONDEMNATION AND INSURANCE PROCEEDS ............................................. 58
18.5. DISPUTE RESOLUTION IN RE: INSURANCE, DAMAGE, DESTRUCTION,
CONDEMNATION ................................................................................................. 59
RIGHTS OF LENDERS 59
19.1. GENERAL. ............................................................................................................. 59
19.2. NO RIGHT OF FIRST REFUSAL. ......................................................................... 59
19.3. UNPAID DUES OR CHARGES ............................................................................. 59
19.4. ACTION REQUIRING MORTGAGEE APPROVAL. .............................................. 60
19.5. PAYMENT OF TAXES AND INSURANCE ............................................................ 60
19.6. PRIORITY OF PROCEED OR AWARD DISTRIBUTION ..................................... 60
19.7. NOTIFICATION TO ELIGIBLE MORTGAGEE HOLDER. ..................................... 60
19.8. AGREEMENT FOR MANAGEMENT .................................................................... 61
19.9. INSPECTION OF PROJECT DOCUMENTS, BOOKS AND RECORDS .............. 61

DECLARATION vi A Dac_4474-BO_OregonSt.doc
19.10. NON-CURABLE BREACH ..................................................................................... 61
19.11. LOAN TO FACILITATE .......................................................................................... 61
19.12. DOCUMENTS TO BE MADE AVAILABLE ............................................................ 61
19.13. MORTGAGEES FURNISHING INFORMATION ................................................... 62
19.14. FINANCIAL STATEMENT..................................................................................... 62
19.15. TERMINATION WITHOUT SUBSTANTIAL DESTRUCTION ............................... 62
20. CONDOMINIUM PLAN AMENDMENT 62

20.1. AMENDMENT BY ASSOCIATION ........................................................................ 62
20.2. RESTRICTIONS AND LIMITATIONS .................................................................... 62
20.3. POWER OF ATTORNEY ....................................................................................... 62
20.4. INDEMNIFICATION OF OWNERS ON EXERCISE OF POWER OF ATTORNEY.
······························································································································· 63
20.5. ENCUMBRANCES TO TAKE SUBJECT TO POWER OF ATTORNEY ............... 63
20.6. EFFECT ON ASSESSMENTS LIENS ................................................................... 64
20.7. AMENDMENT BY DECLARANT ........................................................................... 64
AMENDMENTS 64
21.1. PRIOR TO FIRST LIVING UNIT CONVEYANCE ................................................. 64
21.2. AFTER CONVEYANCE OF FIRST UNIT .............................................................. 64
21.3. AMENDMENTS FOR TECHNICAL ERRORS, CLARIFICATION AND CHANGES
IN LAW ................................................................................................................... 55
22. ENFORCEMENT 65
22.1. TERM ..................................................................................................................... 65
22.2. ENFORCEMENT AND NON-WAIVER .................................................................. 66
22.3. PROCEDURE FOR ENFORCEMENT BY PARTIES ............................................ 66
22.4. DECLARANT-RELATED DISPUTE RESOLUTION .............................................. 66
22.4.1. NOTICE OF ACTIONS AGAINST DECLARANT ........................... 66
22.4.2. ALTERNATIVE DISPUTE RESOLUTION ...................................... 66
22.4.3. NOTICE AND OPPORTUNITY TO CURE ..................................... 67
22.4.4. GENERAL RULES (Real Estate Commissioners' Regulation
§2791 .8) .......................................................................................... 67
(A) FEE TO INITIATE RESOLUTION PROCESS ................... 67
(B) PAYMENT OF FEES ......................................................... 67
(C) NEUTRAL, IMPARTIAL FACILITATOR ............................. 68
(D) TIMELY APPOINTMENT OF OVERSEER ........................ 68
(E) VENUE ............................................................................... 68
(F) COMMENCEMENT AND TIMING ..................................... 68
(G) FAIR AND REASONABLE RULES AND PROCEDURES 68
(H) PROMPT ISSUANCE OF DECISION OR RULING .......... 68
(I) REMEDIES AVAILABLE TO RESOLUTION FACILITATOR
................................................................... """''""'"""''"' 68
(J) PUNITIVE DAMAGES ....................................................... 68
(K) JUDICIAL REMEDY .............. -- ........................................... 68
22.4.5. DECLARANT RESOLUTION PROCESS ....................................... 68
(A) NOTICE ............................................................................. 68
(B) RIGHT TO INSPECT AND RIGHT TO CORRECTIVE
ACTION ............................................................................. 69
(C) CIVIL CODE SECTIONS 1368.4, 1375, 1375.05 AND
1375.1 ................................................................................ 69
(D) MEDIATION ....................................................................... 69
(E) POSITION MEMORANDA; PRE-MEDIATION
CONFERENCE .................................................................. 69

DECLARATION vii A Dec_4474-BO_OregonSt.doc
{F) CONDUCT OF MEDIATION .............................................. 70
{G) EXCLUSION AGREEMENT .............................................. 70
{H) PERSONS PERMITTED AT SESSIONS .......................... 70
(I) EXPENSES ........................................................................ 70
22.4.6. ARBITRATION ................................................................................ 70
(A) FEDERAL ARBITRATION ACT ......................................... 71
(B) WAIVER OF LITIGATION AND APPEAL .......................... 71
(C) GENERAL ARBITRATION PROVISIONS ......................... 71
{D) ADDITIONAL RULES APPLICABLE TO CERTAIN CASES
..................·......................................................................... 72
22.4.7. SEVERABILITY .............................................................................. 73
22.4.8. EXCEPTIONS TO MEDIATION AND ARBITRATION; STATUTES
OF LIMITATION .............................................................................. 73
22.4.9. SURVIVAL; SUCCESSORS AND ASSIGNS ................................. 73
22.5. MISCELLANEOUS PROVISIONS REGARDING ENFORCEMENT AND LEGAL
ACTION ................................................................................................................. 73
22.5.1. FAILURE TO ENFORCE ................................................................ 73
22.5.2. VIOLATION OF LAW ...................................................................... 73
22.5.3. GOVERNING LAW ......................................................................... 73
23. EXISTING CONDOMINIUM PROJECT DISCLOSURE 74

23.1. DOCUMENTATION/LIMITATION ON WARRANTIES .......................................... 74
24. GENERAL PROVISIONS 74

24.1. SEVERABILITY..................................................................................................... 74
24.2. EXTENSION OF DECLARATION ......................................................................... 74
24.3. ANNEXATION ....................................................................................................... 74
24.4. APPROVAL BY FHA AND VA ............................................................................... 75
24.5. NOTICE ................................................................................................................. 75
24.5.1. PERSONAL SERVICE; HAND DELIVERY .................................... 75
24.5.2. SERVICE BY MAIL, EXPRESS MAIL. ........................................... 75
24.5.3. COMPLETION OF SERVICE. ........................................................ 75
24.6. REPORTS TO PROSPECTIVE PURCHASERS; ESTOPPEL CERTIFICATE-
CIVIL CODE SECTION 1368 ................................................................................ 75
24.7. NOTIFICATION OF SALE OR CONVEYANCE .................................................... 76
24.8. EASEMENTS RESERVED AND GRANTED ........................................................ 76
24.9. GOVERNING DOCUMENTS ................................................................................. 76
24.10. SINGULAR INCLUDES PLURAL. ......................................................................... 76
24. 11. LIBERAL CONSTRUCTION .................................................................................. 76
EXHIBIT "A"~ LEGAL DESCRIPTION ........................................................................................... 78
4474~4480
OREGON STREET
DECLARATION viii A Dec_4474-BO_OregonSt.doc
THIS DECLARATION is made on the day and year hereinafter written by ERIC W. VACA,
hereinafter called "Declarant." The first~letter capitalized words used herein shall have the
meanings given them in Article 3 herein.
1. RECITALS
1.1. OWNERSHIP OF PROPERTY.

Declarant is the owner of that certain real property located in the City of San Diego, County
of San Diego, State of California, more particularly described in Exhibit "A," attached hereto and by this
reference made a part hereof {the "Property").
1.2. ESTABLISHMENT OF COMMON INTEREST DEVELOPMENT.

The Property is a "Common Interest Development" established pursuant to the provisions
of the Davis-Stirling Common Interest Development Act, more particularly described in California Civil Code
Section 1351 (f) as a "Condominium Project" (the "Project"). Declarant desires and intends to impose on
the Property by this Declaration mutually beneficial restrictions, limitations, easements, assessments and
liens under a comprehensive plan of improvement and development for the use and management of the
Project as a residential Condominium Project and community called 4474-4480 OREGON STREET {the
"Community'); and for the purpose of enhancing and protecting the value, desirability and attractiveness of
the Property for the benefit of all Owners and occupants thereof.
1.3. DESCRIPTION OF PROJECT.
1.3.1. NUMBER OF UNITS.

There are four (4) residential dwellings within the Property, which are
intended to be developed and conveyed as four (4) "Units" or "Living Units" in a single phase.
1.3.2. COMMON AREA.

In addition to the Living Units. the Condominium Project will consist of
"Common Area," which includes (but is not limited to): one (1) Condominium Building, fencing, lighting,
walkways, parking spaces and landscaping.
1.4. CONDOMINIUM PLAN.

Declarant has or will hereafter file a Condominium Plan with the County Recorder, covering
the Property. The Condominium Plan depicts the Living Units contained therein and their appurtenant
Exclusive Use Common Areas contained therein.
1.5. ESTABLISHMENT OF ASSOCIATION.

Declarant will cause or has caused the incorporation of the 4474-4480 OREGON STREET
HOMEOWNERS ASSOCIATION, a California nonprofit mutual benefit corporation ("Association"),
organized under the Nonprofit Mutual Benefit Corporation Law (California Corporations Code Sections 7110
et seq.), for the purpose of exercising the powers and functions set forth herein. The Association shall act as
the management body for the Community, and shall be responsible for the operation, maintenance and
control of the Common Area. By virtue of owning a Condominium in the Project, each Owner shall also have
a membership in the Association, which membership shall be appurtenant to and pass with title to the
Condominium.

DECLARATION -1- 'Dec_4474"8D_OregonSt.doc
1.6. CONDOMINIUM OWNERSHIP.
Each Owner of a' Condominium shall receive title to (a) a "Unit" Separate Interest in space,
(b) an appurtenant undivided one--fourth (114th) fractional interest in the Common Area, (c) the exclusive
right to use any "Exclusive Use Common Area" appurtenant to such Owner's Unit, and (d) a membership
in the Association.
2. DECLARATION
NOW, THEREFORE, Declarant hereby certifies and declares that the Property, and each
and every Condominium in it, is, and shall be, held, conveyed, transferred, hypothecated,
encumbered, leased, rented, used and occupied subject to the limitations, reservations, covenants,
conditions, restrictions, servitudes, easements, liens and charges herein set forth, all of which are
declared and agreed to be in furtherance of and pursuant to a general plan for the development
and ownership of the Property, and all of which are declared and agreed to be for the purpose of
uniformly enhancing, maintaining and protecting the value, attractiveness and desirability of the
Property. These provisions are imposed upon Declarant, the Owners and the Association, and
shall bind the Owners and the Association. These provisions shall be a burden upon and a benefit
to not only the original Owner of each Condominium and the Association, but also to their
respective successors and assigns. All covenants are intended as and are declared to be
covenants running with the land as well as equitable servitudes upon the land.
3. DEFINITIONS.
3.1. APPLICABLE LAW
"Applicable Law(s)" shall mean and refer to any law, regulation, rule, order or ordinance of
any governmental or quasi-governmental entity, applicable to the Units or the Project or any portion thereof,
or the use or occupancy thereof, now in effect or as hereafter promulgated.
3.2. ARTICLES.
"Articles" shall mean and refer to the Articles of Incorporation, including such amendments
thereto as may from time to time be made.
3.3. ASSOCIATION; HOMEOWNERS ASSOCIATION.

"Association" or "Homeowners Association" shall mean and refer to the 4474-4480
OREGON STREET HOMEOWNERS ASSOCIATION, a California non-profit mutual benefit corporation,
incorporated under the Non-Profit Mutual Benefit Laws of the State of California, its successors and assigns.
3.4. BOARD.
"Board" shall mean and refer to the Board of Directors of the Association.
3.5. BYLAWS.
"Bylaws" shall mean and refer to the Bylaws of the Association, including such amendments
thereto as may from time to time be made.
3.6. CITY.
"City" shall mean and refer to the City of San Diego, a municipal corporation located in the
County of San Diego, State of California.

DECLARATION - 2- • Dec_4474-BO_OregonSt.doc
3.7. COMMON AREA.
"Common Area" shall mean and refer to all of the real property and all improvements
thereon, except the separate interests in space called Living Units. The Common Area shall be owned by
the Owners of Living Units as tenants-in-common in equal share, one (1) for each Living Unit.
3.8. COMMON EXPENSE AREAS.

"Common Expense Areas" shall mean and refer to all portions of the Project of which the
cost and expense of maintenance, repair and replacement is the responsibility of the Association, and shall
include, but not be limited to, the following: (a) all Common Area except the Exclusive Use Common Area for
which individual Owners are responsible, (b) those portions of a Unit that are designated by this Declaration
as the responsibility of the Association, (c) such other improvements or property from time to time
designated by the Board as a maintenance, repair or replacement responsibility of the Association.
3.9. COMMON EXPENSES.

"Common Expenses" shall mean and refer to the actual and estimated costs and expenses
incurred or to be incurred by the Association, including, but not limited to:
(a) Maintenance, management, operation, repair and replacement of the Common
Expense Areas;
(b) Costs and expenses not paid by the Owner responsible for payment, when such
costs and expenses are paid by the Association;
(c) Maintenance by the Association of areas within the public right-of-way of public
streets in the vicinity of the Community as provided in this Declaration or pursuant to agreements with the
City or County, if any;
(d) Costs of management and administration of the Association, including, but not
limited to, compensation paid by the Association to managers, accountants, attorneys and employees;
(e) Costs and expense of leasing, owning, maintaining any vehicles for the use of the
Members or employees, including insurance and reserves for replacement thereof;
(f) Costs of utilities, trash pickup and disposal, gardening and other services benefiting
the Owners and their property to the extent such services are paid for by the Association;
(g) The costs of fire, casualty, liability, worker's compensation and other insurance
covering the Common Area or other property owned by the Association;
(h) The costs of any other insurance obtained by the Association pursuant to the
provisions of this Declaration;
(i) Reasonable reserves as deemed appropriate by the Board;
U) The costs of bonding of the Members of the Board or its delegated committees, any
professional managing agent or any other person handling the funds of the Association;
(k) Taxes paid by the Association;
(I) Amounts paid by the Association for the discharge of any lien or encumbrance
levied against the Common Area or portions thereof;
(mj Costs incurred by the Board or any of its delegated committees;
(n) The costs of any other item or items designated by, or in accordance with other
expenses incurred by the Association for any reason whatsoever in connection with the operation or
maintenance of the Common Expense Areas, or in furtherance of the purposes or the discharge of any
obligation imposed on the Association by this Declaration or other Project Documents.

DECLARATION -3- 'Dec_4474-80_0regonSt.doc
3.1 0. COMMUNITY.
"Community" shall mean and refer to all of the Property which is, from time to time, subject to
this Declaration.
3.11. CONDOMINIUM.
"Condominium" shall mean and refer to an estate in the Condominium Property, or portions
thereof, as defined in California Civil Code Section 1351 (f), and shall consist of an undivided interest as
tenant~in~common in the portion of real property coupled with a separate interest in space called a Living
Unit, together with any Exclusive Use Common Area appurtenant thereto.
3.12. CONDOMINIUM BUILDING.

"Condominium Building" shall mean any building structure located on the Property.
3.13. CONDOMINIUM DOCUMENTS and/or PROJECT DOCUMENTS.

"Condominium Documents and/or Project Documents" means and includes this Declaration
and any Exhibits attached hereto, any Supplementary Declaration or Declaration of Annexation, the
Condominium Plan, Articles of Incorporation, Bylaws, and any Rules and Regulations established from time
to time by the Board or any Committee of the Board, including any amendments to the aforedescribed
documents as may from time to time be made.
3.14. CONDOMINIUM PLAN; PLAN.

"Condominium Plan" or "Plan" shall mean and refer to a plan, as it may from time to time be
amended, consisting of (a) a description or survey map of the Project, which shall refer to or show
monumentation on the ground, (b) a three~dimensional description of the Project, as built or to be built, one
or more dimensions of which may extend for an indefinite distance upwards or downwards, in sufficient detail
to identify the common areas and each separate interest, and (c) a certificate consenting to the recordation
of the condominium plan pursuant to California Civil Code Section 1351(e), signed and acknowledged by the
record owner of fee title to the Property included in the Project.
3.15. COUNTY.
"County" shall mean and refer to the County of San Diego, California.
3.16. COUNTY RECORDER.

"County Recorder'' shall mean and refer to the San Diego County Recorder, San Diego
County, California.
3.17. DECLARANT.
"Declaranf' shall mean and refer to ERIC W. VACA, his successors and assigns, if such
successors or assigns acquire any or all of the Declarant's interest in the Property for the purpose of
development or sale. A successor Declarant shall also be deemed to include the beneficiary under any deed
of trust securing an obligation from a then existing Declarant encumbering all or any portion of the Property,
which beneficiary has acquired any such property by foreclosure, power of sale or deed in lieu of such
foreclosure or sale.
3.18. DECLARATION; CC&RS.

"Declaration" or "CC&RS" shall mean and refer to this Declaration, recorded with the County
Recorder. covering the Property, including such amendments thereto as may from time to time be recorded.
4474~4480
OREGON STREET
DECLARATION -4- A Dec_4474·BO_OregonSt.doc
3.19. DWELLING; RESIDENCE.
"Dwelling" or "Residence" shall mean a single family residence located within the Property
that is used exclusively by the Owner or Occupant thereof for residential purposes, including any areas of the
Property immediately adjacent to such Dwelling to which an Owner or Occupant of such Dwelling has an
exclusive right to use (e.g. a deck, patio, etc.).
3.20. ELIGIBLE INSURER, GUARANTOR.

"Eligible Insurer'' and "Eligible Guarantor" shall mean and refer to an insurer or governmental
· guarantor who has provided a written request to the Homeowners Association, to be notified of those matters
which such holder is entitled to notice of by reason of this Declaration or the Bylaws of the Association.
3.21. ELIGIBLE MORTGAGE HOLDER.

"Eligible Mortgage Holder'' shall mean and refer to the holder of a first mortgage or deed of
trust on a Condominium, who has provided a written request to the Homeowners Association, to be notified
of those matters which such holder is entitled to notice of by reason of this Declaration or the Bylaws of the
Association. Such notice must contain the Condominium number or the street address of the secured
Condominium.
3.22. EMERGENCY.
"Emergency" is an unforeseen occurrence or condition calling for immediate action to avert
imminent danger to life, health, or property.
3.23. EXCLUSIVE USE COMMON AREA.

"Exclusive Use Common Area," shall mean and refer to those portions of the Common Area
to which an exclusive right to use is granted to an Owner of a Separate Interest in space called a Living Unit
and is appurtenant and assigned to that Living Unit, as appropriate. Exclusive Use Common Areas are
shown on the Condominium Plan by alpha designations as follows:
"P" denoting Porch Exclusive Use Common Areas
"Y" denoting Yard Exclusive Use Common Areas
"G" denoting Garage Exclusive Use Common Areas
"Exclusive Use Common Area" shall also mean and refer to internal and external:
telephone electrical wiring, plumbing, lighting and other utilities; shutters, awnings, window boxes,
doorsteps, stoops, porches, exterior doors, door and window frames and hardware incident
thereto, screens and windows or other fixtures, if any of the foregoing are designed to exclusively
serve a single Living Unit, but located outside the boundaries of such Living Unit.
3.24. FHA.
"FHA" shall mean and refer to the Federal Housing Administration of the United States
Department of Housing and Urban Development, including any successors thereto.
3.25. FHLMC.
"FHLMC" shall mean and refer to the Federal Home Loan Mortgage Corporation.
3.26. FIRST MORTGAGE.

"First Mortgage" shall mean and refer to a Mortgagee which has priority under the recording
statutes of the State of California over all other Mortgages encumbering a specific Condominium in the
Project.

DECLARATION -5- A Dec_4474.BO_OregonSt.doc
3.27. FIRST MORTGAGEE.
"First Mortgagee" shall mean and refer to the Mortgagee of a First Mortgage.
3.28. FNMA.
"FNMA" shall mean and refer to the Federal National Mortgage Association.
3.29. FIRST MORTGAGE.

"First Mortgage" shall mean and refer to a First Deed of Trust as well as a First Mortgage.
3.30. IMPROVEMENT.
"Improvement" shall mean and refer to all structures and appurtenances thereto of every
type and kind, including, but not limited to, buildings, outbuildings, additions, patio covers, tent, umbrellas,
screen. awnings, trellis, exterior wiring, paintings of any exterior surfaces of any structure, walkway, parking
garage, driveways, fences, screening retaining walls, stairs, landscaping, sprinkler pipes heads, hedges,
windbreaks, natural or artificial trees, shrubs and flowers, poles, masts, antennas, exterior air conditioning,
water softener fixtures or equipment, street furniture, benches, signs, including entry monument signs and
Community directional signs.
3.31. INCORPORATOR
"Incorporator'' shall mean and refer to the incorporator of the Association. The Incorporator
shall have the right to do all things necessary and proper to perfect the organization of the Association,
including, but not limited to: adopting or amending the Bylaws, supplementing or amending this Declaration,
the Condominium Plan, any other Project Document. including any respective amendment of any such
foregoing Project Document, and taking any other action with respect to the Association not prohibited by
Applicable Law.
3.32. INSTITUTIONAL MORTGAGEE.

"Institutional Mortgagee" shall mean and refer to a First Mortgagee which is (a) a bank,
savings and loan association, insurance or mortgage company or other entity or institution chartered under
federal and/or state law; (b) an insurer or governmental guarantor of a First Mortgage; (c) any Federal or
state agency; (d) the State of California as the vendor under an installment land sales contract covering a
Condominium; or (e) any other institution specified by the Board in a recorded instrument, who is the
Mortgagee of a Mortgage or the beneficiary of a Deed of Trust encumbering a Condominium.
3.33. INVITEE.
"Invitee" shall mean and refer to any person whose presence within the Project is approved
by or is at the request of a particular Owner, including, but not limited to, lessees, tenants and the family,
guests, employees, licensees or invitees of Owners, tenants or lessees.
3.34. LIVING UNIT, UNIT, CONDOMINIUM UNIT; LIVING AREA.

Living Unit, Unit, Condominium Unit or Living Area" shall mean and refer to the residential
separate interests in space in the Condominium Project which are not owned in common with the other
Owners of other separate interests in the Project. Living Units are shown and described on the
Condominium Plan by the alpha designation "LU-" followed by the numerical designation of the Living Area.
3.35. MAP; SUBDIVISION MAP.

"Map" or "Subdivision Map" shall mean and refer to that certain Subdivision Map filed with
the County Recorder, as more particularly described in Exhibit "A."

DECLARATION ~ 6- 'Oec_4474-80_0regonSt.doc
3.36. MEMBER.
"Member'' shall mean and refer to a person entitled to membership in the Association as
provided herein.
3.37. MORTGAGE.
"Mortgage"shall mean and refer to a deed of trust as well as a mortgage.
3.38. MORTGAGEE.
"Mortgagee" shall mean and refer to a beneficiary or a holder of a deed of trust as well as a
mortgagee.
3.39. MORTGAGOR.
"Mortgagor'' shall mean and refer to the trustor of a Deed of Trust as well as a mortgagor.
3.40. OCCUPANT
"Occupant" shall mean and refer to a Person or natural person: (a) who owns and occupies
a Condominium Unit, (b) who leases a Condominium Unit from an Owner and occupies the same, or(c) who is
an invitee of an Owner or such ONner's leasee and who occupies the Ccndominium Unit
3.41. OWNER.
"Owner'' shall mean and refer to the record Owner, whether one (1) or more persons or
entities, of fee simple title to a Condominium. The term "Owner'' shall include a seller under an executory
contract of sale, but shall exclude Mortgagees.
3.42. PERSON.
"Person" shall mean a natural individual, and/or any public or private corporation, general or
limited partnership, limited liability company, trust, trustee and any other form of organization permitted by
law, or one or more of them, and the heirs, executors, administrators, legal representatives, successors and
assign of any of them. as the context may require, including Owners, who has the legal right to hold title to or an
interest in real property, induding, but not limited to, a leasehold interest or an easement
3.43. PROJECT; CONDOMINIUM PROJECT.

"Projecf' or "Condominium Projecf' shall mean and refer to that certain real property
described in Exhibit "A" herein.
3.44. PROPERTY.
"Property" shall mean and refer to that certain real property located in San Diego County,
California, more particularly described in Exhibit "A" hereto.
3.45. RETAIL BUYER.

"Retail Buyer'' shall mean and refer to a Person who purchases a Condominium from
Declarant for purposes of ownership and use thereof. A Retail Buyer shall not include a "person," "builder'' or
"developer'' as described in either California Business and Professions Code Sections 11000.1 (b )(2), as may
from time to time be amended.
3.46. RULE CHANGE

"Rule Change" shall mean and refer to the adoption, amendment, or repeal of a Rule by
Declarant or the Board.
44 74-4480 OREGON STREET

DECLARATION - 7- • Dec_4474-SO_OregonSt.doc
3.47. RULE; OPERATING RULE
"Rule(s)" or "Operating Rule(s)" shall mean and refer to a regulation(s) adopted initially by
Declarant and thereafter the Board that applies generally to the Operation of the Project or the conduct of the
business and affairs of the Association, Owners, Occupants and their respective Invitees within the Project.
Rules may include, but not be limited to, the type, size and number of pets allowed in any one Unit and their
comportment within the Project.
3.48. SEPARATE INTEREST.

"Separate Interest" shall mean and refer to a "Unit" separate interest in space as defined in
Civil Code Section 1351(1), which is herein also defined as a "Living Unit," "Condominium Unit" or "Living
Area."
3.49. SOUND ATTENUATION; FLOORING SPECIFICATIONS

3.49.1. SOUND ATTENUATION
(a) In any building structure where there are attached Units, sound may
be audible between such Units, particularly where the sound level of the source is sufficiently high and the
background noise in an adjacent Unit is very low. Each Unit Occupant shall endeavor to minimize any noise
transmission from such Occupant's Unit, and shall adhere to any of the rules and regulations set forth in the
Association Rules which are intended to minimize noise transmission. To minimize the noise transmission
from a Unit, each Occupant (other than Declarant) shall adhere to the following:
(b) On demising walls (party walls), acoustical sealant shall be packed
around the point of penetration of all pictures and other decorative items hung from the wall that require
nailing or screwing. No holes or other penetrations shall be made in demising walls other than decorative
items, without the permission of the Board.
(c) No audio, television, stereo, speakers or other audio/visual or meda
equipment shall be installed in, supported from or contact any demising wall without the permission of the
Board.
(d) Independent speakers for music reproduction and television shall be
elevated from the floor by a proper acoustic platform.
(e) Noise from speakers must be kept at a reasonable level so as not to
interfere with other Occupants' enjoyment of their Units.
(f) No modifications shall be made to any Unit which would result in a
reduction in the minimum impact insulation class of the Unit.
(g) In all Units above the first floor, pianos shall have at least 1/2-inch
neoprene pads under the supports to minimize vibration transmission into the structure.
(h) In all Units above the first floor, resilient pads must be placed under
all washing machines, dishwashers and clothes dryers in order to minimize transmitting vibration to other
Units.
(i) In all Units above the first floor, all furniture shall contain rubber
castors or felt pads.
U) To maximize the sound insulation capabilities of each Unit, there
shall be no hard surface or wood flooring installed in any Unit above the first floor except: (i) such
surfaces installed by Declarant, if any, in connection with any construction or interior decorating of a Unit, or
(ii) such surfaces that comply with the flooring specification provisions of Section 3.49.2 hereafter.
(k) may include specific instructions contained within the Association
Rules or Archtectural Standards.

DECLARATION - 8- A Dec_4474·80_0regonSt.doc
3.49.2. FLOORING SPECIFICATIONS
(a) The Owner of any Residential Unit wishing to install a hard surface
floor must submit to the Board the following:
(1) A construction drawing clearly indicating the type of flooring to be

installed and the underlayment to be provided to mitigate against
impact noises such as footfalls (footsteps). The drawing must
clearly identify all materials, their composition and thickness, as well
as the location of adjacent cabinets, doors, entranceways, etc.
(2) A test report from a qualified acoustical testing laboratory clearly

showing that the Impact Isolation Class of the construction selected
has a minimum rating of fifty (50).
(3) A copy of the installation instructions from the resilient floor

underlayment manufacturer.
(4) The name, qualifications, and experience of the contractor who will
install the hard surface flooring and resilient underlayment with a
listing of his experience in the installation of floors utilizing impact
insulation materials.
(5) The name of the proposed individual(s) who will oversee the
installation in order to verify that the installation is in accordance
with the flooring manufacturer's requirements.
(b) No construction shall be permitted until this information is submitted

to and approved by the Board unless the Board determines in their prudent judgment that the requirement
should be waived. Submission of these materials to the Board shall be for the purpose of documenting the
location and design of any hard surface flooring within the Project and to insure that such flooring is installed
in a professional manner and with reference to appropriate standards. Installation of any hard surface
flooring without compliance with each of the requirements set forth in (a)- (e) above shall constitute a
violation of this Declaration, and subject the violating Owner to all remedies provided herein or by applicable
law for such violation, including, without limitation, the levy of fines by the Association until such violation is
removed from the Unit.
(c) In addition, and notwithstanding any Owner's compliance with the
requirements of Section 3.49.2(a)(1) - (5) above, if, following installation of any such hard surface floor, the
Owner of the Unit located beneath such installation lodges a complaint with the Board concerning the sound
impact of such flooring on the complaining Owner's Unit, the Owner installing such hard surface flooring
shall, upon notice from the Board, cover at least eighty percent (80%) of the hard surface flooring within such
Owner's Unit with carpeting in order to mitigate the impact to the complaining Owner, and the failure of the
Owner notified by the Board to comply with the Board's requirement within sixty (60) days after receipt of that
notice shall constitute a violation of this Declaration and subject the violating Owner to all remedies provided
by this Declaration or applicable law.
3.50. VA
"VA" shall mean and refer to the U.S. Department of Veterans Affairs, including any
successors thereto

DECLARATION -9- A Dec_4474-80_0regonSt.doc
4. OWNERSHIP
4.1. OWNERSHIP OF CONDOMINIUMS.

Each Condominium in the Project shall be conveyed to an Owner. Ownership of a
Condominium shall include: (1) fee simple title to a separate interest in space called a "Living Unit," (2) an
appurtenant undivided one-fourth (1!4th) fractional interest as tenant-in-common in the "Common Area,"
(3) the exclusive right to use any "Exclusive Use Common Area" appurtenant to such Owner's Living Unit
as described in this Declaration and the deed to the Condominium, and (4) a membership in the Association.
4.2. NO SEPARATION OF INTERESTS.

No Owner may sell, assign, lease or convey his undivided fractional interest as tenant in
common in the Common Area separate and apart from his Living Unit, nor any portion of, or appurtenance to
his Living Unit apart from the entire Living Unit. Anything in the Article herein entitled AMENDMENTS to the
contrary notwithstanding, this Article shall not be amended, modified or rescinded until Declarant has
conveyed title to the last Condominium in the Project to a Retail Buyer or other Person, without (a) the prior
written consent of Declarant, and (b) the recording of said written consent with the County Recorder.
4.3. PARTITION.
Each of the Owners of a Condominium, whether such ownership is in fee simple or as a
tenant-in-common, is hereby prohibited from partitioning or in any other way severing or separating such
ownership from any of the other ownerships in the Condominium Property, except upon the showing that
such partition is consistent with the requirements of California Civil Code Section 1359.
4.4. POWER OF ATTORNEY.

The Association is hereby granted an irrevocable power of attorney to sell the Condominium
Property for the benefit of all the Owners thereof when partition of the Owners' interests in said
Condominium Property may be had pursuant to the Article entitled "Damage or Destruction;
Condemnation" or the Section entitled "Partition" hereinabove. The power of attorney herein granted may
be exercised upon the vote or written consent of Owners holding an aggregate of sixty-seven percent (67%)
of the interest in the Common Area by any two (2) Members of the Board who are hereby authorized on
behalf of the Association to record a certificate of exercise with the County Recorder, which certificate shall
be conclusive evidence thereof in favor of any person relying thereon in good faith.
5. EASEMENTS
The ownership interests in the Condominiums described in the Article above entitled
OWNERSHIP are subject to the easements granted and reserved in this Declaration. Each of the
easements reserved or granted herein shall be deemed to be established upon the recordation of
this Declaration, unless otherwise provided, and shall thenceforth be deemed to be covenants
running with the land for the use and benefit of the Owners and their Condominiums superior to all
other encumbrances applied against or in favor of any portion of the Project. Individual grant
deeds to Condominiums may, but shall not be required to set forth the easements specified in this
Article.
5.1. NON·EXCLUSIVE EASEMENTS FOR COMMON AREAS.

Subject to the provisions of this Declaration, every Member of the Association shall have, for
himself or herself, and such Member's Invitees, a non-exclusive easement of access, ingress, egress, use
and enjoyment of, in, to and over the Common Area; and such easement shall be appurtenant to and shall
pass with title to every Condominium in the Project, subject to the rights and restrictions set forth below.

5.2. DECLARANT AND ASSOCIATION EASEMENTS.
5.2.1. OPERATION AND MAINTENANCE.

There is hereby reserved by Declarant for the benefit of Declarant. for so
long as Declarant owns one or more Condominiums in the Project, and granted to the Association, such
easements on, over, under, across and through the Property, as may be necessary to service and maintain
the Property, or any portion thereof. and to perform the respective duties and obligations of Declarant and/or
the Association, as the case may be, as set forth in, but not limited to, any contractual agreements and/or
warranties with respect to any Improvements in the Property, this Declaration and the other Project
Documents, including any Association Rules and/or Architectural Standards and their implementation.
5.2.2. UTILITIES; THIRD PARTIES.

Declarant and/or the Association shall have the power to grant and convey
in the name of and as attorney-in-fact for any and all Owners -- and Declarant on behalf of the Association --
such easements and rights-of-way on, over, under, across and through the Property, as may be required or
needed: (a) to establish an exclusive use easement in favor of one or more Persons; (b) for purposes of
constructing, erecting, installing, operating or maintaining: (i) lines, cables, wire. conduits or other devices for
electricity, cable or master antenna television, telephone, computer and other utility transmissions; and
(ii) public and private sewers, storm water drains and pipes, water systems, interior and exterior sprinkler
systems, heating and gas lines or pipes. and any other similar improvements or facilities, whether public,
quasi-public or private. Each Retail Buyer, in accepting a deed to a Unit, expressly consents to such
easements and rights of way and authorizes and appoints the Association and Declarant (as long as
Declarant owns one or more Units) as attorney-in-fact of such Owner, to execute any and all instruments
conveying or creating such easements or rights-of-way. The foregoing notwithstanding, no such easement
or right-of-way can be granted if it would permanently interfere with the use, occupancy or enjoyment by any
Owner of his or her Unit, unless approved in writing by any such "interfered" Owner(s). or, in cases of
Common Area, unless approved in writing or by the vote of holders of not less than seventy~five percent
(75%) of the voting rights of each class of membership.
5.2.3. ADDITIONAL DECLARANT EASEMENTS.

Subject to a concomitant obligation to restore, Declarant and its sales
agents, employees and independent contractors shall also have the easements described in the Article
herein entitled "DEVELOPMENT RIGHTS."
5.3. OWNERS' RIGHTS, DUTIES AND EASEMENTS FOR UTILITIES.

Whenever utility facilities (plumbing, heating, electrical and other utility systems) are installed
within the Project, or any portion thereof, lie in, upon or over a Unit or Units owned by other than the Owner
of the Unit served by said utility facilities, the Owner of any such Unit served by said utility facilities shall have
the right of reasonable access for themselves, for utility repairmen, for utility companies or the City to repair,
replace and generally maintain said utility facilities as and when the same may be necessary. A Unit Owner
shall be entitled to reasonable access to the Common Area for the purpose of maintaining internal and
external telephone and cable TV wiring servicing such Owner's Unit. The access shall be subject to the
consent of the Board or its delegated committee, whose approval shall not be unreasonably withheld, and
which may include such approval of telephone or cable TV wiring upon exterior Common Areas in the
Project, and other conditions as the Board.
Whenever utility faciiities are instalied within the Project which serve more than one (1) Unit,
the Owner of each Unit served by the utility facilities shall be entitled to the full use and enjoyment of such
portions of the utility facilities as service his Unit. In the event of a dispute between Owners with respect to
the repair or rebuilding of the utility facilities, or with respect to the sharing of the cost thereof, then, upon
written request to the Association by one (1) of such Owners, the matter shall be submitted to arbitration
pursuant to the provisions therefor contained in Article 21 herein entitled "ENFORCEMENT; DISPUTE
RESOLUTION," and the decision of the Arbitrator(s) shall be final, conclusive and binding on the parties.

DECLARATION - 11 - • Dec_4474-BO_OregonStdoc
5.4. ENCROACHMENT.
There are hereby reseNed and granted for the benefit of each Condominium Unit, as
dominant tenement, over, under and across each other Condominium Unit and the Common Area, as
seNient tenements, and for the benefit of the Common Area, as dominant tenement, over, under and across
each Condominium Unit, as seNient tenement, non-exclusive easements for encroachment, support,
occupancy and use of such portions of Condominium Units and Common Area as are encroached upon,
used and occupied by the dominant tenement as a result of any original construction design, accretion,
erosion, addition, deterioration, decay, errors in original construction, movement, settlement, shifting or
subsidence of any building, structure, or other improvements or any portion thereof, or any other cause. In
the event any portion of the Project is partially or totally destroyed, the encroachment easement shall exist
for any replacement structure which is rebuilt pursuant to the original construction design. The easement for
the maintenance of the encroaching improvement shall exist for as long as the encroachment exists;
provided, however, that no valid easement of encroachment shall be created due to the willful misconduct of
the Association or any Owner. Any easement of encroachment may, but need not be cured by repair and
restoration of the structure.
5.5. DECLARANT'S NON-EXCLUSIVE EASEMENTS.

Subject to a concomitant obligation to restore, Declarant and its sales agents, employees
and independent contractors shall have the easements described in the Article herein entitled
"DEVELOPMENT RIGHTS."
5.6. DECLARATION SUBJECT TO EASEMENTS.

Notwithstanding anything herein expressly or impliedly to the contrary, this Declaration shall
be subject to all easements theretofore or hereafter granted by Declarant for the installation and
maintenance of utilities and drainage facilities that are necessary for the Project.
6. DEVELOPMENT RIGHTS
6.1. LIMITATION OF RESTRICTIONS.
Declarant is undertaking the work of developing Condominiums and other Improvements
within the Project. The completion of that work and the marketing, sale, rental and other disposition of the
Condominiums is essential to the establishment and welfare of the Property as a residential community. In
order that said work may be completed and said Project Property be established as a fully occupied
residential community as rapidly as possible, nothing in this Declaration shall be interpreted to deny
Declarant the rights set forth in this Article.
6.2. RIGHTS OF ACCESS AND COMPLETION OF IMPROVEMENTS.

Until (a) all the Condominiums in the Project are sold and conveyed by Declarant to Retail
Buyers or other Persons, or, (b) three (3) years following the date of conveyance of the first Condominium in
the Project to a Retail Buyer, whichever shall first occurs, Declarant, its contractors and subcontractors shall
have the rights set forth below.
6.2.1. COMMON AREA ACCESS.

Declarant, its contractors and subcontractors shall have the right to obtain
reasonable access over and across the Common Area of the Project or do within any Condominium owned
by it whatever is reasonably necessary or advisable in connection with the completion of the Project and the
marketing and maintenance thereof.

DECLARATION - 12- • Dec_4474-80_0regonSt.doc
6.2.2. TEMPORARY EXCLUSIVE EASEMENT(S) FOR COMPLETION OF
IMPROVEMENTS.
Declarant hereby reserves, for the benefit of Declarant and its agents,
contractors and employees and other persons authorized by Declarant, the right to establish an exclusive
easement over one or more portions of the Common Area in which construction activities have not been
completed (the "Construction Area"). This may include, but not be limited to, completion of landscape
installation and maintenance, painting of Condominium Building, and such other construction and
development activities the completion of which either (a) may not fall under any formal evidence of
completion such as the recordation of a Notice of Completion, or (b) may not be included or applicable
under, or required by a performance bond pursuant to California Code of Regulations Section 2792.4.
Notwithstanding anything to the contrary set forth in this Declaration, Declarant, and not the Association,
shall be responsible for maintaining those areas where such construction activities take place. Such
easement shall be an exclusive easement in favor of Declarant and shall include the right of ingress and
egress over, under, upon and across such Construction Area, together with the right of Declarant to deny
access to any Owner or any Owner's Invitees by fencing, restricting or any other reasonable method prior to
completion of the construction activities within such Construction Area.
6.2.3. CONSTRUCTION AND MARKETING IMPROVEMENTS.

Declarant, its contractors and subcontractors shall have an easement and
right to erect, construct and maintain on the Common Area of the Project or within any Condominium owned
by it, such structures or improvements ("Construction and Marketing Improvements"), including, but not
limited to, sales offices, flags, balloons. banners and signs, as may be reasonably necessary for the conduct
of its business to complete the work, establish the Project as a residential community and dispose of the
Condominiums by sale, lease or otherwise, as determined by Declarant in its sole discretion and to perform
or complete any work to improvements required for Declarant to obtain a release of any bonds posted by
Declarant with the City.
6.2.4. GRANT EASEMENTS.

Declarant, its contractors and subcontractors shall have the right to
establish and/or grant over and across the Common Area such easements and rights of way on, over, under
or across all or any part thereof to or for the benefit of the State of California, the City, or any other political
subdivision or public organization, any public utility entity, cable or other television signal provider, or any
online computer access provider. for the purpose of constructing, erecting, operating and maintaining
facilities and improvements thereon, therein or thereunder at that time or at any time in the future. including:
(a) poles, wires and conduits for transmission of electricity, providing telephone, television or online computer
services and for the necessary attachments in connection therewith, and (b) public and private sewers,
sewage disposal systems, storm water drains, land drains and pipes, water systems, sprinkling systems,
water, heating and gas lines or pipes and any and all equipment in connection therewith. The Common Area
shall be subject to any dedication stated in the Subdivision Map for the Project of an easement for public use
for installation, maintenance and operation of facilities for public utilities over all or any part of the Common
Area. Said public utilities easement over the Common Area shall inure and run to all franchised utility
companies and to the City and shall include the right of ingress and egress over the Common Area by
vehicles of the City and such utility companies to properly install, maintain, repair, replace and otherwise
service such utility facilities. The grant of said public utility easement shall not be interpreted to imply any
obligation or responsibility of any such utility company or the City for maintenance or operation of any of the
Common Area or the facilities located thereon or the repair, replacement or reconstruction thereof except as
occasioned by such utility companies, the City of the utility facilities for which they are responsible. The
Common Area shall also be subject to any easements granted by Declarant to any public or private entity for
cellular, cable, computer or other similar transmission lines. Except for lawful and proper fences, structures
and facilities placed upon the Common Area by utility companies, the Common Area subject to the public
utility easement shall be kept open and free from buildings and structures. The City and the County,
furthermore, are granted an easement across the Common Area for ingress and egress for use by
emergency vehicles of the City and County.

6.2.5. SIZE AND APPEARANCE OF PROJECT.
Declarant shall not be prevented from increasing or decreasing the number
of Condominium Units that may, pursuant to the provisions of Article 23.3, be annexed to the Project or from
changing the exterior appearance of the Condominium Buildings or any other Common Area structures, the
landscaping or any other improvement or matter directly or indirectly connected with the Project in any
manner deemed desirable by Declarant, if Declarant obtains such govemmental consents therefor as may
be required by law.
6.3. MARKETING RIGHTS.
6.3.1. GENERAL RIGHTS.

Subject to the limitations of this Declaration, Declarant shall have the right
to:
(a) Maintain model homes, sales offices, storage areas and related
facilities in any unsold Condominium Unit or portion of the Common Area as are necessary or reasonable in
the opinion of Declarant, for the sale or disposition of the Condominiums;
(b) Make reasonable use of the Common Area and facilities for the sale
of Condominiums;
(c) Post signs, flags, balloon and banners in connection with its
marketing of Condominiums; and
(d) Conduct its business of disposing of Condominiums by sale, lease
or otherwise.
6.3.2. AGREEMENT FOR EXTENDED USE.

If, following the third (3rd) anniversary of the conveyance of the first
Condominium Unit in the Project to a Retail Buyer, Declarant requires exclusive use of any portion of the
Common Area for marketing purposes, Declarant may use the Common Area only if an agreement is
entered into between Declarant and the Association. The agreement must specifically provide for a limited
duration for such use and must provide for a specific reasonable rate of compensation to the Association by
Declarant. Compensation shall be commensurate with the nature, extent and duration of the use proposed
by Declarant. In no event, however, shall Declarant be denied the right to use the Common Area, and/or any
Condominium Unit owned by Declarant.
6.4. DECLARANT RESTORATION OBLIGATION.

(a) Notwithstanding anything herein to the contrary, Declarant, its sales agents,
employees and independent contractors shall, in connection with the use of any Common Area for marketing
and disposition of Condominiums, have a concomitant obligation to restore to its original condition any
portion of the Common Area that may have been damaged as a result of the use thereof by Declarant and/or
its related agents.
(b) Declarant shall effect any such restoration within thirty (30) days after the earlier to
occur of the following: (i) Declarant's conveyance of the last Condominium in the Project to a Retail Buyer: or
(ii) three (3) years following the date of conveyance of the first Condominium in the Project to a Retail Buyer,
subject to any extension of Declarant's right to use the Common Area for marketing and disposition of
Condominiums as provided in Section 6.3.2 above entitled 'AGREEMENT FOR EXTENDED USE."
(c) In the event that Declarant fails to restore any damage sustained to the Common
Area that pursuant to this Section, Declarant shall be liable to the Association to the extent such liability may
be determined pursuant to the provisions therefor contained in Section 21 entitled "ENFORCEMENT;
DISPUTE RESOLUTION."

DECLARATION - 14- 'Dec_4474-80_0regonSt.doc
6.5. ASSIGNABILITY OF RIGHTS.
The rights of Declarant under this Article 6, may be assigned to any successor(s) by an
express assignment in a recorded instrument, including without limitation a deed, option or lease. In the
event of any such assignment, Declarant's liability for restoration of Common Area described in the Section
immediately above entitled "DECLARANT RESTORA T!ON OBL/GA TION," Declarant shall be relieved of the
performance of any further duty or obligation thereunder, and Declarant's successor shall be obligated to
perform all such duties and obligations of Declarant. The foregoing notwithstanding, this Declaration shall
not be construed to limit the right of Declarant at any time prior to such assignment to establish additional
licenses, reservations and rights·of-way to itself, to utility companies or to others as may be reasonably
· necessary to the proper development and disposal of property owned by Declarant.
6.6. AMENDMENT.
The provisions of this Article may not be amended without the consent of Declarant (or its
duly authorized successor in interests) until such time that all of the Condominium Units in the Project owned
by Declarant have been conveyed to Retail Buyers.
7. PERFORMANCE BOND
In the event that the Improvements to be installed by Declarant to the Association Property
have not been completed, and in the further event that the Association is the obligee under a bond
to secure performance by the Declarant to complete such improvements, then if such
improvements have not been completed and a Notice of Completion not filed within sixty (60) days
after the completion date specified in the Development Plan (or Planned Construction Statement)
appended to the bond, the Board shall consider and vote upon the question of whether or not to
bring action to enforce the obligations under the bond. If the Association has given an extension in
writing for the completion of any such improvement then the Board shall consider and vote on said
question if such improvements have not been completed and a Notice of Completion not filed
within thirty (30) days after the expiration of the extension period. In the event that the Board
determines not to take action to enforce the obligations secured by the bond, or does not vote on
the question as above provided, then, in either such event, upon petition signed by Members
representing not less than five percent (5%) of the total voting power of the Association, the Board
shall call a special meeting of the Members to consider the question of overriding the decision of
the Board or of requiring the Board to take action on the question of enforcing the obligations
secured by the bond. Said meeting of Members shall be held not less than thirty·five (35) days nor
more than forty·five (45) days following receipt of the petition. At said meeting a vote of a majority
of the voting power of the Members, excluding the vote of Declarant, to take action to enforce the
obligations under the bond shall be deemed to be the decision of the Association, and the Board
shall thereafter implement the decision by initiating and pursuing appropriate action in the name of
the Association.
8. THE ASSOCIATION
8.1. THE ORGANIZATION,
The Association is a nonprofit mutual benefit corporation formed under the Nonprofit Mutual
Benefit Law of the State of California.
8.2. COMMENCEMENT OF ASSOCIATION.

The Association shall commence business at such time that a Board of Directors has been
elected pursuant to the provisions therefor contained in the Bylaws.

DECLARATION -15- • Dec_4474-80_0regonSt.doc
8.3. INTERIM PERIOD.
The "Interim Period" shall mean and refer to that period of time from (a) the date of
conveyance of the first Condominium to a Retail Buyer in the Project, until (b) the date that a Board of
Directors of the Association has been elected by the membership pursuant to the provisions therefor
contained in the Bylaws. During the Interim Period, Declarant or its designated agent may operate and
handle the affairs for the Common Area of the Project, as more fully described in the Bylaws. The foregoing
notwithstanding, during the Interim Period, the powers granted to the Association and the Board herein, in
the Bylaws and in the other Project Documents., shall inure to the Declarant or its agent.
8.4. POWERS AND DUTIES OF THE ASSOCIATION.

The Association, acting through its Board of Directors, shall have all of the powers of a
California nonprofit mutual benefit corporation, and to perform any and all lawful acts which may be
necessary or proper for or incidental to the exercise of any of the express powers of the Association, as
described and subject to the limitations set forth in this Declaration, the Articles of Incorporation and the
Bylaws of the Association.
~ MEMBERSHIP. VOTING. FIRST MEETING

9.1. MEMBERSHIP IN GENERAL.
Every Owner of a Condominium shall be a Member of the Association. Membership shall be
appurtenant to and may not be separated from ownership of any Condominium. Membership in the
Association shall not be transferred, pledged or alienated in any way, except upon the sale of the
Condominium to which it is appurtenant, and then only to the purchaser. The transfer of title to a
Condominium or the sale of a Condominium and transfer of possession thereof to the purchaser shall
automatically transfer the membership appurtenant thereto to the transferee. As a Member of the
Association, each Owner is obligated to promptly, fully and faithfully comply with and conform to the Articles,
this Declaration, the Bylaws, the Architectural Standards, and the Rules adopted hereunder from time to time
by the Board and officers of the Association.
9.2. CLASSES OF VOTING RIGHTS.

The Association shall have two (2) classes of voting membership:
9.2.1. CLASS A.
Each Member, other than the Declarant, shall be a Class A member. Class
A membership entitles the holder to one (1) vote for each Condominium of which he or she is record owner.
If a Condominium is owned by more than one person, each such person shall be a Member of the
Association, but there shall be no more than one (1) vote for each Condominium.
9.2.2. CLASS B.
The Declarant is a Class B Member. Class B membership entitles the
holder to three (3) votes for each Condominium of which the Declarant is record owner.
The Class B membership shall be irreversibly converted to Class A
membership on the first to occur of the following:
(a) When the total outstanding votes held by the Class A Members are
equal to or greater than the total outstanding votes held by the Class B Member; or
(b) Two (2) years following the conveyance by Declarant of the first
Condominium to a Retail Buyer

DECLARATION - 16- ' Dec_44 74-80_ OregonStdoc
9.3. COMMENCEMENT OF VOTING RIGHTS.
An Owner's right to vote, including Declarant, shall not vest until Assessments have been
levied upon such Owner's separate interest as provided in this Declaration. All voting rights shall be subject
to the restrictions and limitations provided for herein and in the Articles and Bylaws.
9.4. APPROVAL OF MEMBERS.

Unless specifically provided for otherwise, any provision of the Project Documents requiring
the vote or written assent of the Association voting power shall be deemed satisfied by the following:
9.4.1. VOTE OF MAJORITY.

The vote of the majority at a meeting duly called and noticed pursuant to the
provisions of the Bylaws dealing with annual or special meetings of the Members, unless a provision of this
Declaration requires a special meeting only; provided, however that such majority must include the specified
number of all Members entitled to vote at such meeting and not such a majority of a quorum of those
Members present;
9.4.2. WRITING.
A writing or writings signed by a majority of the voting power; or
9.4.3. COMBINATION OF VOTES AND WRITING.

A combination of votes and written assent, provided that Members shall not
change their vote or written assent after it is cast or delivered and provided further that only those written
assents executed within sixty (60) days before or thirty (30) days after a meeting may be combined with
votes cast at such meeting to constitute a majority.
9.5. FIRST MEETING OF THE ASSOCIATION.

The first regular meeting of the Association shall be held no later than:
(a) Forty-five (45) days after the conveyance to a Retail Buyer of the Condominium
which represents the fifty-first percentile interest (51%) of the Project; or
(b) No later than six (6) months after the conveyance of the first Condominium in the
Project to a Retail Buyer, whichever occurs first. Thereafter, regular meetings of the Association shall be
held in accordance with provisions of the Bylaws. At the first meeting, the Members shall elect the Board of
Directors. Election to and removal from the Board shall be by secret written ballot with cumulative voting, as
more particularly described in the Bylaws.
9.6. CLASS A MEMBERS' SELECTION OF ASSOCIATION DIRECTORS.

In any election of Directors, commencing on the first regular annual meeting scheduled after
the first Condominium is sold to an Owner, other than Declarant, so long as a majority of the voting power of
the Association resides in the Declarant, or so long as there are two (2) outstanding classes of membership
in the Association, not less than twenty percent (20%) of the Directors shall have been elected solely by the
votes of Class A Members, other than the Declarant. Such Class A elected representative may be removed
prior to the expiration of his or her term of office only by a vote of at least a simple majority of the Members,
excluding the Declarant.
9.7. NO PERSONAL LIABILITY OF BOARD MEMBERS.

No member of the Board, or of any committee of the Association, or any officer of the
Association. or any manager. or Declarant, or any agent of Declarant, shall be personally liable to any
Owner, or to any other party, including the Association, for any error or omission of the Association, the
Board, its authorized agents or employees or its delegated committee, if such person or entity has, on the
basis of such information as may be possess by him or it, acted in good faith without willful or intentional

DECLARATION 'Dec_4474-BO_OregonSldoc
misconduct. In addition to the foregoing, as more particularly specified in California Civil Code Section
1365.7, or any successor statute or law, any person who suffers bodily injury, including, but not limited to,
emotional distress or wrongful death as a result of the tortious act or omission of a member of the Board who
resides in the Project either as a tenant or as an Owner of no more than two (2) Condominiums, and who, at
the time of the act or omission, was a "volunteer'' as defined in California Civil Code Section 1365.7, or any
successor statute or law, shall not recover damages from such Board member, if such Board member
committed the act or omission within the scope of his or her Association duties, while acting in good faith and
without acting in a willful, wanton or grossly negligent manner, provided that all of the requirements of
California Civil Code Section 1365.7, or any successor statue or law, have been satisfied.
~ RIGHTS, POWER AND DUTIES OF ASSOCIATION AND BOARD

The Association and its Board shall have all the powers of a nonprofit corporation organized
under the Nonprofit Mutual Benefit Corporation Law of California subject only to such limitations on
the exercise of such powers as are set forth in the Articles, the Bylaws and this Declaration. It shall
have the power to do any lawful thing that may be authorized, required, or permitted to be done by
the Association under this Declaration, the Articles and the Bylaws, and to do and perform any act
that may be necessary or proper for or incidental to, the exercise of any of the express powers of
the Association, including, without limitation, the powers set forth below.
10.1. SUSPEND RIGHTS OF MEMBERS.

The Board shall have the right, after Notice and Hearing, to temporarily suspend an Owner's
rights as a Member pursuant to the terms of this Declaration.
10.2. DEDICATE OR GRANT EASEMENTS.

The Association shall have the right to dedicate and/or grant easements over all or any
portion of the Common Area.
10.3. BORROW FUNDS.

The Association shall have the right to borrow money to improve, repair or maintain the
Common Area and to hypothecate any or all real or personal property owned by the Association, including
pledging as collateral the assessment liens levied thereon provided that, the borrowing of any money or
hypothecation of any real or personal property in excess of five percent (5%) of the budgeted gross
expenses of the Association shall require the consent of fifty-one percent (51%) of each class of Members.
10.4. ASSESSMENTS.
The Association through its Board shall have the power to establish, fix, and levy
assessments against the Owners and their Condominiums, and to enforce payment of such assessments in
accordance with the provisions of this Declaration.
10.5. RIGHT OF ENFORCEMENT; PENAL TIES; NOTICE AND HEARING.

10.5.1. ENFORCEMENT ACTIONS.
The Association in its own name and on its own behalf, or on behalf of any
Owner who consents, can commence and maintain actions for damages or to restrain and enjoin any actual
or threatened breach of any provision of the Project Documents or any resolutions of the Board, and to
enforce by mandatory injunction, or otherwise, all of these provisions. In addition, the Association can
temporarily suspend the membership rights and privileges for any violation of the Project Documents or
Board resolutions.

DECLARATION - 18- 'Dec_4474-BO_OregonSt.doc
10.5.2. PENALTIES AGAINST MEMBERS.
The Board shall have the right to impose the following penalties against
Members:
(a) Suspension of the membership rights and privileges, together with
the voting rights of any Member of the Association, for any period of time during which the assessment on a
Member's Condominium remains unpaid;
(b) Suspension of the membership rights and privileges, together with
the voting rights of any Member of the Association, for any period not to exceed thirty (30) days for any
infraction of the Association's Rules;
(c) Levying of monetary penalties against an individual Member as a
disciplinary measure for failure of a Member to comply with provisions of the Project Documents or Board
resolutions, or as a means of causing the Member to reimburse the Association for costs and expenses
incurred by the Association in the repair of damage to the Common Area and facilities for which the Member
was allegedly responsible, or in bringing the Member and his or her Condominium to compliance with the
Project Documents or Board resolutions; provided, however, no such monetary penalty may be
characterized or treated as an assessment which may become a lien against the Owner's subdivision
interest enforceable by a sale of the interest in accordance with the provisions of Sections 2924, 2924(b) and
2924(c) of the California Civil Code.
(d) provisions of the preceding paragraph expressly do not apply to
charges imposed against a Member consisting of reasonable late payment penalties for delinquent
assessments and/or charges to reimburse the Association for the loss of interest and for costs reasonably
incurred (including attorneys' fees) in its efforts to collect delinquent assessments as more fully described in
this Declaration.
(e) In the event legal counsel is retained or legal action is instituted by
the Board pursuant to this Section, any settlement prior to judgment or any judgment rendered in any such
action shall include costs of collection, court costs and reasonable attorneys' fees.
(f) A Member shall have the right to Notice and Hearing prior to the
Board's decisions to impose any suspension or monetary penalty, as more fully described in Section 10.4
hereafter entitled "Notice and Hearing."
10.5.3. RULES AND REGULATIONS

(a) The Board shall have the power to adopt, amend or repeal any
Operating Rule ; provided, however, that any Operating Rule shall be valid and enforceable only if all of the
following requirements are satisfied:
(1) The Rule is in writing;
(2) The Rule is within the authority of the Board conferred by
and not inconsistent with Applicable Law, these CC&RS or the other Project Documents;
(3) The Rule is adopted, amended or repealed in good faith
and in substantial compliance with the requirements of this Section; and
(4) The Rule is reasonable.
(b) An Operating Rule may govern the use of the Common Area by all
Owners, Occupants and their Invitees, and the conduct of Owners, Occupants and their Invitees with
respect, but not limited to vehicle parking, outside storage of bicycles and other objects, disposal of waste
materials, drying of laundry, pets (i.e. the type, size, number, etc. of pets allowed per Unit or their control or
comportment within the Project) and other activities which, if not so regulated, might detract from the
appearance of the Community or offend or cause inconvenience or danger to persons residing or visiting
therein. An Operating Rule may also (a) govern issues relating to landscaping and irrigation, if deemed
appropriate by the Board, to protect the Project and the Improvements thereon or to reduce Operations

costs; and (b) provide that the Owner or Occupant of a Unit or their Invitee who leaves property within the
Common Area areas in violation of the Rules may be assessed, after Notice and Hearing, an amount to
cover (i) the expense incurred by the Association in removing such property and storing or disposing thereof,
or (ii) the expense incurred by the Association in correcting such violation or the results of such violation.
(c) PETS: Anything herein to the contrary notwithstanding, an amended
or appealed Operating Rule affecting Owners' pets shall not affect or be of any force with respect to any
Owner's pet previously permitted by Rules in effect at the time such pet was authorized by Declarant or the
Board to be in an Owner's Unit, but only for the lifetime of such previously authorized pet or pets. Declarant
or the Board shall evidence the authority for the permission to have any pet pursuant to the Rules then in
effect by reference thereof in one or more of the following methods: [a] by written log maintained by the
Association; [b] stated within the minutes of a meeting of the Board, the Association or by special minutes
entry; [c] by written certificate duly signed by Declarant, the Board or the Board's duly authorized agent (e.g.
property manager); provided however, nothing herein shall be deemed to authorize the maintenance of a pet
that is an annoyance or is obnoxious to other Owners or Occupants.
10.6. ENTRY BY ASSOCIATION.

The Association and the Association's agents or employees shall have the right to enter (a)
into any Living Unit and/or its appurtenant Exclusive Use Common Area in the event of an emergency that
requires such entry, (b) into any Living Unit and/or its appurtenant Exclusive Use Common Area to perform
certain maintenance or other Association obligations that require entry into a Living Unit, at reasonable
hours. (c) upon the Common Area to perform maintenance or other Association obligations. All of the
foregoing entrys shall be conducted in accordance with the provisions therefor described more fully in this
Declaration.
10.7. POWER OF BOARD TO DEFINE AND INTERPRET.

Notwithstanding anything contained in this Declaration or any other Governing Document,
each Person who accepts a deed to or leasehold interest in a Unit, hereby agrees and acknowledges that
the Board shall have the power and the authority to define, interpret and/or construe certain words and
terminologies contained in this Declaration and the Governing Documents which may otherwise be
unclear, vague and/or ambiguous, and, which, if not so defined, interpreted or construed, would be
detrimental to the Board's ability to conduct, manage and control the affairs and business of the Association,
including the enforcement of the covenants, conditions, restrictions and other provisions of the Governing
Documents. as well as any rules and regulations promulgated by the Board and not (a) inconsistent with law
and/or (b) not in contravention to the general plan for the subdivision, protection, maintenance, improvement,
sale and lease of the Project, or any portion thereof. Such words, phrases and terminology shall include, but
not be limited to: "nuisance," "annoyance," "obnoxious," "quiet enjoyment," "excessive," "disturb,"
"obstruct," "interfere," "minor repair," "hazard," "offensive," "standard·sized," "shall not be
unreasonably withheld," "delays beyond control of an Owner," "pose a potential risk to public health
or safety," and such other words and phrases as may be defined from time to time by the Board and/or
published in the Rules
1.1:. RIGHTS OF OWNERS

11.1. RIGHTS OF OWNERS.
Owners, and, to the extent permitted by such Owner. such Owner's Invitees, and contract
purchasers who reside in such Owner's Dwelling, shall have the following rights and limitations:
11.2. RIGHT OF ACCESS AND USE OF DWELLING.

The right of access over the Common Area for ingress to and egress from such Owner's
Condominium and Dwelling thereon, and of enjoyment and full use of such Condominium and Dwelling,
which right shall be appurtenant to and shall pass with title to the Owner's Condominium, subject to the

limitations contained herein. This right cannot be forfeited or abridged by the failure by an Owner to comply
with provisions of the Project Documents or duly-enacted Rules, except by judgment of a court or a decision
arising out of arbitration or on account of a foreclosure or sale under a power of sale for failure of the Owner
to pay assessments levied by the Association.
11.3. RIGHT TO THE USE OF COMMON AREA.

The right of ingress and egress and of enjoyment in, to and over the Common Area. Such
right of ingress and egress and enjoyment shall be appurtenant to and shall pass with title to the
Condominium, subject to the limitations and restrictions of the Project Documents.
11.4. NOTICE AND HEARING.

The right to receive at least fifteen ( 15) days' written notice prior to a decision by the Board
to impose monetary penalties, a temporary suspension of an Owner's rights as a Member of the Association
(e.g. voting), or other appropriate discipline for failure of the Member to comply with the Project Documents
as described more fully in the Section entitled "Penalties Against Members" hereinabove, or any such
longer period as may be required under Section 7341 of the California Corporations Code (or any successor
statute or law). Additionally, before the Board decides to impose a suspension of privileges or impose a
monetary penalty, the aggrieved Owner shall be provided with an opportunity to be heard by the Board,
orally or in writing, not less than five (5) days before the date of the suspension of privileges or imposition of
a monetary penalty is to take effect. For purposes of this Section, notice shall be given by any method
reasonably calculated to provide actual notice. Notice may be hand-delivered to the Owner, or sent by first
class registered or certified mail, return receipt requested, or overnight delivery and addressed to the Owner
at the last address of the Owner shown on the Association's records, or any other method deemed
reasonable by the Board for delivering notices. Each suspended or fined Owner or other person can appeal
a suspension or monetary penalty imposed by the Board, including any claim alleging defective notice, within
one (1) year of the date of action taken by the Board, by filing written notice of his or her intention to appeal
with the Board. The action imposing the fine or suspension shall then become ineffective until the fine or
suspension is unanimously approved by all directors of the Board at a regular or special meeting of the
Board at which all directors are present. The Owner or any other person to be fined or suspended can
appear. be represented by legal counsel and be heard at the meeting before the Board, either orally or in
writing.
11.5. DELEGATION OF USE.

Any Owner may delegate his or her right of enjoyment to the Common Area to his or her
tenants or contract purchasers who reside on his or her Condominium; provided, however, that if any Owner
delegates such right of enjoyment to tenants, neither the Owner nor his or her family shall be entitled to use
the Common Area by reason of ownership of the Condominium during the period of delegation. Invitees of
any Owner may use the Common Area only in accordance with this Declaration or any Rules adopted by the
Board.
12. ASSESSMENTS
12.1. COVENANT FOR ASSESSMENTS.
Subsequent to the conveyance of the first Condominium in the Property to a Retail Buyer.
the Declarant, for each Condominium owned within the Property in which either a Condominium has been
sold to a Retail Buyer, or leased, as more fully described, respectively, in the Sections herein entitled
"Commencement of Assessments" and "Assessments On Condominiums Not Conveyed to Retail Buyers,"
hereby covenants, and each Owner of a Condominium by acceptance of a deed therefor, whether or not it
shall be so expressed in such Deed, is deemed to covenant and agree to pay to the Association all
assessments levied pursuant to the provisions of this Declaration. All assessments, together with interest,
costs, late charges and reasonable attorneys' fees, shall be a charge on and a continuing lien upon the
Condominium against which each such assessment is made, the lien to become effective upon recordation

DECLARATION - 21 - A Dec_4474-BO_OregonSt.doc
of a Notice of Delinquent Assessment, as provided in this Article. Each such assessment. together with
interest, costs, late charges and reasonable attorneys' fees, shall also be the personal obligation of the
Person who was the Owner of such Condominium at the time when the assessment fell due and shall bind
his or her heirs, devisees, personal representatives and assigns. Unlike the lien for delinquent assessments,
the personal obligation for non-delinquent assessments shall not pass to successive Owners, unless
expressly assumed by each such successive Owner. No such assumption of personal liability by a
successive Owner (including a contract purchaser under an installment land contract) shall relieve any
Owner from personal liability for delinquent assessments. If more than one person or entity was the Owner
of a Condominium, the personal obligation to pay such assessment or installment respecting such
Condominium shall be both joint and several.
12.2. FUNDS HELD IN TRUST.

The assessments collected by the Association shall be held by the Association for and on
behalf of each Owner and shall be used solely for the operation, care and maintenance of the Project as
provided in this Declaration. Upon the sale or transfer of a Condominium, the Owner's interest in the funds
shall be deemed automatically transferred to the successor in interest of such Owner.
12.3. PURPOSE OF ASSESSMENTS.

The assessments levied by the Association shall be used exclusively to promote the
recreation, health, safety and welfare of all the residents in the Project and for the improvement and
maintenance of the Common Area and for any other maintenance responsibilities of the Association, and to
reimburse the Association for costs incurred in bringing an Owner into compliance with the Project
Documents. The Association shall not use any assessments or Association funds, or otherwise participate,
in any attempt to abate any annoyance or nuisance emanating from outside the physical boundaries of the
Project, or in support of federal, state or local political activities intended to influence governmental action
affecting areas outside of the boundaries of the Project (e.g. endorsement or support of political candidates,
legislative or administrative actions by any governmental agency, or ballot proposals).
12.4. REGULAR ASSESSMENTS.
12.4.1. PAYMENT OF REGULAR ASSESSMENTS.

Regular Assessments for each, iscal year of the Association shall be
established when the Board approves the Budget for that fiscal year, which Budget shall be prepared in
accordance with the provisions of this Declaration. Regular Assessments shall be levied on a fiscal year
basis. Unless otherwise specified by the Board, Regular Assessments shall be due and payable in monthly
installments on the first day of each month during the term of this Declaration.
12.4.2. BUDGETING.
Regardless of the number of Members or the amount of assets of the
Association, each year the Board shall prepare, approve and make available to each Member a Budget as
described in the Bylaws. Increases in Regular Assessments shall be subject to the limitations set forth in
Section 11.16 below. For the first fiscal year, the Budget upon which Regular Assessments shall be based
shall be the Budget provided by Declarant and shall be approved by the Board no later than the date on
which Regular Assessments are scheduled to commence. Thereafter, the Board shall annually prepare and
approve the Budget and distribute a copy thereof to each Member (or a summary thereof as provided in the
Bylaws), together with written notice of the amount of the Regular Assessment to be levied against the
Owner's Condominium, not less than forty-five (45) days nor more than sixty (60) days prior to the beginning
of the fiscal year.
12.5. RESTRICTIONS OF TAX EXEMPTION.

As long as the Association seeks to qualify and be considered as an organization exempt
from federal and state income taxes pursuant to Internal Revenue Code Section 528 and California Revenue

DECLARATION -22- A Dec_4474·80_0regonSt.doc
and Taxation Code Section 23701t and any amendments thereto, then the Board shall prepare its annual
budget and otherwise conduct the business of the Association in such manner consistent with federal and
state requirements to qualify for such status.
12.6. NON~WAIVER OF ASSESSMENTS.

If before the expiration of any fiscal year the Association fails to fix Regular Assessments for
the next fiscal year, the Regular Assessment established for the preceding year shall continue until a new
Regular Assessment is fixed.
12.7. SPECIAL ASSESSMENTS.

If the Board determines that the estimated total amount of funds necessary to defray the
Common Expenses of the Association for a given fiscal year is or will become inadequate to meet expenses
for any reason, including, but not limited to, unanticipated delinquencies. costs of construction, unexpected
repairs, replacement of or new capital improvements on, damage and destruction or condemnation of the
Common Area, the Board shall determine the approximate amount necessary to defray such expenses and,
·if the amount is approved by a majority vote of the Board and does not exceed five percent (5%) of the
budgeted gross expenses of the Association, it shall become a Special Assessment; provided, however that
such limitation shall not apply to Special Assessments levied by the Board to replenish the Association's
reserve account as provided in the Bylaws Section entitled "USE OF RESERVE FUNDS." Except for a
Special Assessment levied pursuant to the Bylaws Section entitled "USE OF RESERVE FUNDS," any
Special Assessment in excess of five percent (5%) of the budgeted gross expenses of the Association shall
be subject to the limitation set forth in the Section below entitled "Limitations on Assessments." The
Board may, in its discretion. prorate such Special Assessment over the remaining months of the fiscal year
or levy the assessment immediately against each Condominium. Unless exempt from federal or state
income taxation, all proceeds form any Special Assessment shall be segregated and deposited into a
Financial Account and shall be used solely for the purpose or purposes of which it was levied or it shall be
otherwise handled and used in a manner authorized by law or regulations of the Internal Revenue Service or
the California Franchise Tax Board in order to avoid, if possible, its taxation as income of the Association.
12.8. CAPITAL IMPROVEMENT ASSESSMENT

In addition to any other assessments provided for hereunder, the Association may levy a
Capital Improvement Assessment for the purpose of defraying, in whole or in part, the cost of any
construction or replacement of a capital improvement in accordance with the provisions of the Bylaws
Section entitled "Capital Improvements." Capital Improvement Assessments shall be due and payable by all
Owners in such installments and during such period or periods as the Board shall designate. Increase in
Capital Improvement Assessments shall be subject to the limitations set forth in the Section below entitled
"Limitations on Assessments."
12.9. SINGLE BENEFIT ASSESSMENT.

(a) The Board may establish a Single Benefit Assessment for reconstruction, capital
improvements, extraordinary maintenance, or any other cost or expense not otherwise provided for in this
Declaration which will benefit less than all of the Owners, and which will be assessed only against the
Condominiums of those Owners so benefiting.
(b) Except as provided in the paragraph immediately below, such Single Benefit
Assessments may be imposed only by a vote of at least fifty-one percent (51%) of the Owners of the
Condominiums benefited by the Single Benefit Assessment.
(c) Whenever the Association performs any service or accomplishes any item of repair
or maintenance which is the duty of an Owner to accomplish, but which has not been accomplished by such
Owner, or whenever the Association determines to preempt the performance of a specific Owner of a given
act of maintenance or repair. the Association shall specifically charge the cost thereof, together with any
financing costs and administrative costs incurred by the Association, to the Owner for whom such work was
done. and shall include such additional cost as a Single Benefit Assessment for such Owner(s).

DECLARATION - 23- 'Dec_4474·8D_OregonSt.doc
(d) Each Single Benefit Assessment shall be segregated in the Financial Accounts
solely to the Condominiums which derive the benefit therefrom. In the event that the Association obtains
income directly related to an item which has been assessed as a Single Benefit Assessment, such income
· shall be allocated so as to reduce or offset such Single Benefit Assessment.
12.10. ENFORCEMENT ASSESSMENTS.

The Association may levy an Enforcement Assessment against any Owner who causes
damage to the Common Area or for bringing an Owner or his or her Condominium into compliance with the
provisions of the Project Documents or any other charge designated an Enforcement Assessment in the
Project Documents, together with attorneys' fees, interest and other charges related thereto as provided in
this Declaration. The Board shall have the authority to adopt a reasonable schedule of Enforcement
Assessments for any violation of the Project Documents. If, after Notice and Hearing as required by this
. Declaration and which satisfies Section 7341 of the California Corporations Code, the Owner fails to cure or
continues such violation, the Association may impose an additional fine each time the violation is repeated,
and may assess such Owner and enforce the Enforcement Assessment as herein provided for nonpayment
of an assessment. A hearing committee may be established by the Board to administer the foregoing.
Notwithstanding any other provision in this Declaration to the contrary, Enforcement Assessments are
assessments, but they may not become a lien against the Owner's Condominium that is enforceable by a
power of sale under Civil Code Sections 2924, 2924b and 2924c or any successor statute or laws. This
restriction on enforcement is not applicable to late payment penalties for delinquent assessments or charges
imposed to reimburse the Association for loss of interest or for collection costs. including reasonable
attorneys' fees, for delinquent assessments.
12.11. UNIFORM RATE OF ASSESSMENT.

Regular Assessments, Special Assessments and Capital Improvement Assessments shall
be levied at a uniform rate for all Condominiums and may be collected on a monthly basis, or otherwise, as
determined by the Board. Enforcement Assessments and Single Benefit Assessments shall be levied
directly to the individual Condominiums and/or their respective Owners, depending upon whether the
assessment may become a lien against the Condominium, as provided in this Declaration.
12.12. EXCESSIVE ASSESSMENTS OR FEES.

The Board may not impose or collect an assessment or fee that exceeds the amount
necessary to defray the costs for which it is levied.
12.13. COMMENCEMENT OF ASSESSMENTS; DUE DATES.

The monthly installments for Regular Assessments provided for herein shall commence as
to all Condominiums in the Project on the first day of the month following the conveyance of the first
Condominium to a Retail Buyer. The first annual assessment shall be adjusted according to the number of
months remaining in the fiscal year.
12.14. NOTICE AND ASSESSMENT INSTALLMENT DUE DATES.

A single ten (10) day prior written notice of each Special Assessment and Capital
Improvement Assessment shall be given to each Owner. The first fiscal year's Regular Assessment shall be
equal to the amount shown in the Budget provided by the Declarant for the Project. Written notice of the
amount of the Regular Assessment for each fiscal year after the first fiscal year shall be distributed to each
Owner not less than forty-five (45) days nor more than sixty (60) days prior to the beginning of the fiscal year,
together with a copy of the approved Budget for that fiscal year, as more fully described in Section 11.4.2
entitled "BUDGETING." The foregoing notwithstanding, the failure of the Board to comply with the foregoing
notice provisions shall not affect the validity of any assessment levied by the Board.
The due dates for the payment of assessments shall normally be established as monthly
installments due on the first day of each month unless some other due date and/or payment schedule is
established by the Board.

12.15. FAILURE TO FIX ASSESSMENTS.
The omission by the Board to fix the assessments hereunder before the expiration of any
fiscal year, for that or the next year, shall not be deemed either a waiver or modification in any respect of the
provisions of this Declaration or a release of the Owner from the obligation to pay the assessments or any
installment thereof for that or any subsequent year, but the assessment fixed for the preceding year shall
continue until a new assessment is fixed.
12.16. LIMITATIONS ON ASSESSMENTS.

(a) The Board of Directors of the Association shall not impose or collect an assessment,
· penalty, or fee that exceeds the amount necessary for the purpose or purposes for which it is levied. Annual
increases in Regular Assessments for any fiscal year. as authorized by subsection (b) immediately
hereinafter, shall not be imposed unless the Board has prepared and distributed the budget described in
Section 11.4.2 entitled "BUDGETING," and in the "Financial" Section of the Bylaws, in accordance with the
provisions of Civil Code Section 1365(a) as it may from time to time be amended, with respect to that fiscal
year, or has obtained the approval of Owners constituting a quorum, casting a majority of the votes at a
meeting or election of the Association conducted in accordance with Chapter 5 (commencing with Section
7510) of Part 3 of Division 2 of Title 1 of the Corporations Code and Section 7613 of the Corporations Code,
or any successor statute.
(b) From and after January 1st of the year immediately following the conveyance of the
first Condominium to an Owner, the Board of Directors of the Association may not impose, except as
provided herein, a Regular Assessment that is more than twenty percent (20%) greater than the
Regular Assessment for the Association's preceding fiscal year or impose special assessments
which in the aggregate exceed five percent (5%) of the budgeted gross expenses of the Association
for that fiscal year without the approval of Owners constituting a quorum casting a majority of the votes at a
meeting or election of the Association conducted in accordance with Chapter 5 (commencing with Section
7510) of Part 3 of Division 2 of Title 1 of the Corporations Code and Section 7613 of the Corporations Code.
These provisions. however, shall not limit assessment increases necessary for the following "emergency
situations:"
(1) An extraordinary expense required by an order of a court;
(2) An extraordinary expense necessary to repair or maintain those

portions of the Project or the Common Area for which the
Association is responsible where a threat to personal safety is
discovered;
(3) An extraordinary expense necessary to repair or maintain those

portions of the Project or the Common Area for which the
Association is responsible that could not have been reasonably
foreseen by the Board in preparing and distributing the budget
under this Declaration and the Bylaws, in accordance with Civil
Code Section 1365, or any amendment thereto;. provided, however,
that prior to the imposition or collection of an assessment under this
paragraph, the Board shall pass a resolution containing written
findings as to the necessity of the extraordinary expense involved
and why the expense was not or could not have been reasonably
foreseen in the budgeting process, and the resolution shall be
distributed to the Members with the "Notice of Regular Assessment";
(4) An extraordinary expense in making the first payment of the

earthquake insurance surcharge pursuant to Section 5003 of the
California Insurance Code.

DECLARATION 'Dec_4474-80_0regonSt.doc
(c) Any increases authorized under this Section shall not be imposed unless the Board
has complied with the budgetary requirements set forth in the Bylaws with respect to the fiscal year for which
an assessment is levied. For the purpose of calculating whether an increase to Regular Assessments
exceeds twenty percent (20%), the term "Regular Assessments" shall be deemed to include the amount
assessed against each Condominium by the Association as a Regular Assessment plus any amount paid by
Declarant as a subsidy pursuant to any subsidy agreements, to the extent such subsidy payments offset any
amount which would otherwise be paid by Owners as Regular Assessments.
(d) For purposes of this Section, "quorum" is defined as more than fifty percent (50%) of
the Owners (including the Declarant) of the Association.
(e) Any action authorized under this Section shall be taken at a meeting called for that
purpose, written notice of which shall be sent to all Members not less than ten (10) days nor more than
ninety (90) days in advance of the meeting.
12.17. NOTICE OF ASSESSMENT INCREASE.

The Board shall provide notice by first-class mail to the Owners of any increase in the
Regular Assessment or Special Assessments or Capital Improvement Assessments of the Association, not
less than thirty (30) nor more than sixty (60) days prior to the increased assessment becoming due and
payable.
12.18. REDUCTION OR ABATEMENT OF REGULAR ASSESSMENTS.

In the event the amount budgeted to meet Common Expenses for a particular fiscal year
proves to be excessive in light of the actual Common Expenses, the Board in its discretion may either reduce
the amount of the Regular Assessments or may abate collection of Regular Assessments as it deems
appropriate. Nothing in this Section shall require the Board either to abate or reduce the Regular
Assessments, The foregoing notwithstanding, neither an abatement nor a reduction in Regular Assessments
shall be permitted so long as Declarant is possessed with or controls a majority of the total voting power of
the Association or the Board.
12.19. NO OFFSETS.
All assessments shall be payable in the amount specified by the Board and no offsets
against such amount shall be permitted for any reason, including, without limitation (a) a claim that the
Association is not properly exercising its duties and powers as provided in this Declaration; (b) a Member
has made or elects to make no use of the Common Area or any Improvements located therein; or, (c) any
construction or maintenance performed pursuant to Section 14.g entitled "Assumption of Maintenance
Obligations" below. shall in any way postpone assessments or entitle a Member to claim any such offset or
reduction.
12.20. DELINQUENCIES; LATE PENALTIES; INTEREST ON ASSESSMENTS.

Any assessment not paid within fifteen (15) days after the due date shall be delinquent and
shall be subject to a reasonable late penalty not exceeding ten percent (10%) of the delinquent assessment
or ten dollars ($1 0.00), whichever is greater, and shall bear interest on all sums including the delinquent
assessment, reasonable costs for collection and late penalties at an annual percentage not exceeding twelve
percent (12%) commencing thirty (30) days after the assessment becomes due, or at the maximum legal rate
as defined in the California Civil Code Section 1366, or any successor statute or law.
12.21. DEBT OF THE OWNER.

Any assessment made in accordance with this Declaration and any late charges, reasonable
costs of collection and interest, shall be a debt of the Owner of a Condominium from the time the
assessment and other sums are levied.

DECLARATION -26- 'Dec_4474-BO_OregonSt.doc
12.22. ASSOCIATION POLICIES AND PRACTICES RE: DEFAULTS.
12.22.1. ASSESSMENT DEFAULTS

The Board shall annually distribute during the sixty (60) day period
immediately preceding the beginning of the Association's Fiscal Year: (a) a statement of the Association's
policies and practices in enforcing its remedies against Members for defaults in the payment of Regular.
Supplemental, Capital Improvement, and Restoration Assessments, including the recording and foreclosing
of liens against Members' Units, and (b) the following notice pursuant to CIVIL CODE §1365.1, as it may be
amended, printed in at least 12-point type:
NOTICE
ASSESSMENTS AND FORECLOSURE
This notice outlines some of the rights and responsibilities of owners of property
in common interest developments and the associations that manage them.
Please refer to the sections of the Civil Code indicated for further information. A
portion of the information in this notice applies only to liens recorded on or after
January 1, 2003. You may wish to consult a lawyer if you dispute an
assessment.
ASSESSMENTS AND NONJUDICIAL FORECLOSURE

The failure to pay association assessments may result in the loss of an owner's
property without court action, often referred to as nonjudicial foreclosure. When
using nonjudicial foreclosure, the association records a lien on the owner's
property. The owner's property may be sold to satisfy the lien if the lien is not
paid. Assessments become delinquent 15 days after they are due, unless the
governing documents of the association provide for a longer time. (CIVIL CODE
§§1366and 1367.1)
In a nonjudicial foreclosure, the association may recover assessments,

reasonable costs of collection, reasonable attorney's fees, late charges, and
interest. The association may not use nonjudicial foreclosure to collect fines or
penalties, except for costs to repair common areas damaged by a member or a
member's guests, if the governing documents provide for this. (CIVIL CODE
§§1366 and 1367.1)
The association must comply with the requirements of Section 1367.1 of the Civil
Code when collecting delinquent assessments. lf the association fails to follow
these requirements, it may not record a lien on the owner's property until it has
satisfied those requirements. Any additional costs that result from satisfying the
requirements are the responsibility of the association. (CIVIL CODE § 1367.1)
At least 30 days prior to recording a lien on an owne;'s sepa;ate interest, the

association must provide the owner of record with certain documents by certified
mail. Among these documents, the association must send a description of its
collection and lien enforcement procedures and the method of calculating the
amount. It must also provide an itemized statement of the charges owed by the
owner. An owner has a right to review the association's records to verify the
debt. (CIVIL CODE § 1367.1)

If a lien is recorded against an Owner's property in error, the person who
recorded the lien is required to record a
lien release within 21 days, and to
provide an owner certain documents in this regard. (CIVIL CODE § 1367.1)
The collection practices of the Association may be governed by state and federal
laws regarding fair debt collection. Penalties can be imposed for debt collection
practices that violate these laws.
PAYMENTS
When an owner makes a payment, he or she may request a receipt, and the
association is required to provide it. On the receipt, the association must indicate
the date of payment and the person who received it. The association must
inform owners of a mailing address for overnight payments. (CIVIL CODE
§§1367.1 and 1367.1)
An owner may dispute an assessment debt by giving the board of the association
a written explanation, and the board must respond within 15 days if certain
conditions are met. An owner may pay assessments that are in dispute in full
under protest, and then request alternative dispute resolution. (CIVIL CODE
§§1366.3 and 1367.1)
An owner is not liable for charges, interest, and costs of collection, if it is
established that the assessment was paid properly on time. (CIVIL CODE
§§1367.1)
MEETINGS AND PAYMENT PLANS

An owner of a separate interest that is not a time~share may request the
association to consider a payment plan to satisfy a delinquent assessment. The
association must inform owners of the standards for payment plans, if any exist.
(CIVIL CODE §§1367.1)
The board of the directors must meet with an owner who makes a proper written
request for a meeting to discuss a payment plan when the owner has received a
notice of a delinquent assessment. These payment plans must conform with the
payment plan standards of the association, if they exist. (CIVIL CODE §§1367.1)
12.22.2. MONETARY PENALTIES AND FEES.

If the Association adopts or has adopted a policy imposing any monetary
penalty, including any fee, on any Member for a violation of the Project Documents, including any monetary
penalty relating to the activities of an Invitee, the Board shall adopt and distribute to each Member. by
personal delivery or first~class mail, a schedule of the monetary penalties that may be assessed for those
violations, which shall be in accordance with authorization for Member discipline contained in Section 9.5.1
above entitled "ENFORCEMENT ACTIONS." and Section 10.4 above entitled "NOTICE AND HEARING.";
provided, however, no such monetary penalty may be characterized or treated as an assessment which may
become a lien against the Owner's subdivision interest enforceable by a sale of the interest in accordance
with the provisions of Sections 2024, 2024(b) and 2024(c) of the California Civil Code. The Board, however.
shall not be required to distribute any additional schedules of monetary penalties unless there are changes
from the schedule that was previously adopted and distributed to the Members.

DECLARATION ~ 28- 'Dec_4474-BO_OregonSt.doc
12.23. COLLECTION OF ASSESSMENTS; LIENS.
12.23.1. RIGHT TO ENFORCE ASSESSMENTS.

The right to collect and enforce assessments is vested in the Board acting
for and on behalf of the Association. The Board or its authorized representative, can enforce the obligations
of the Owners to pay assessments provided for in this Declaration by commencement and maintenance of a
suit at law or in equity, or the Board may foreclose by judicial proceedings or through the exercise of the
. power of sale pursuant to Section 11.23. 7 below, enforce the lien rights created. Suit to recover a money
judgment for unpaid assessments together with all other additional charges described in Section 11.24
hereafter shall be maintainable without foreclosing or waiving the lien rights. Notwithstanding anything else
to the contrary herein, monetary penalties imposed by the Association: (a) to reimburse the Association for
costs incurred by the Association in the repair of damage to Common Area or Property for which the Member
or the Member's Invitees were allegedly responsible, (b) as a disciplinary measure for failure of a Member to
comply with the Project Documents, or (c) as a disciplinary measure in bringing the Member and his or her
Condominium into compliance with the governing instruments of the Association, may not be characterized
nor treated as an assessment which may become a lien against the Member's Condominium enforceable by
a sale thereof conducted in accordance with the provisions of Civil Code Sections 2924, 2924(b), 2924(c)
and 1367, or any successor statute or law. The limitation in the preceding sentence however, does not apply
to any additional charges.
12.23.2. NOTICE TO OWNER PRIOR TO LIEN OF ASSESSMENT.

Pursuant to Civil Code § 1367.1, before the Association may place a lien
upon an Owner's Unit to collect any Assessment which is past due, the Association shall provide written
notice ("Itemized Debt Notice"} to the Owner by certified mail. The precise form and content of the notice is
set forth in Civil Code §1367.1, but includes without limitation the following:
(a) Fee and penalty procedures of the Association as described in
Section above;
(b) An itemized statement of the charges owed by the Owner, including
items on the statement which indicate (i) the principal owed, (ii) any late charges and the method of
calculation, (iii) any attorney's fees, and (iv) the collection practices used by the Association, including the
right of the Association to the reasonable costs of collection;
(c) A statement that the Owner has the right to inspect Association
records pursuant to Corporations Code §8333;
(d) The following statement in 14-point boldface type if printed, or in
capital letters, if typed:
"IMPORTANT NOTICE: IF YOUR RESIDENTIAL UNIT IS

PLACED IN FORECLOSURE BECAUSE YOU ARE BEHIND IN
YOUR ASSESSMENTS, IT MAY BE SOLD WITHOUT COURT
ACTION"
(e) A statement that the Owner shall not be liable to pay the charges,
interest, and costs of collection, if it is determined the assessment was paid on time to the Association; and
(f) A statement that the Owner has the right to request a meeting with
the Board as provided in Code §1367.1(c).
12.23.3. LIEN OF ASSESSMENT.

At any time after (a) any assessments levied by the Association affecting
any Condominium have become delinquent, and (b) the Itemized Debt Notice thereof has been mailed to the

DECLARATION -29- 'Dec_4474-BO_OregonStdoc
Owner of such Condominium, the Board may file for recording with the County Recorder, a "Notice of
Delinquent Assessment" as to such Condominium, which notice shall state all amounts which have become
delinquent with respect to such Condominium and the costs (including attorneys' fees), late penalties and
interest which have accrued thereon, the amount of any assessments relating to such Condominium which is
due and payable although not delinquent, a legal description of the Condominium with the name of the
record or reputed record Owner of such Condominium, and the name and address of the trustee authorized
by the Association to enforce the lien, if by nonjudicial foreclosure as provided below. Such notice shall be
signed by the President, Vice President, Secretary, or Chief Financial Officer of the Association, or by an
authorized agent (as designated by resolution of the Board) of the Association. Immediately upon recording
of any Notice of Delinquent Assessment pursuant to the foregoing provisions of this Section, the amounts
delinquent, as set forth in such Notice, together with the costs (including attorneys' fees), late penalties and
interest accruing thereon, shall be and become a lien upon the Condominium described therein, which lien
shall also secure all costs (including attorney's fees), late penalties and interest accruing thereon. The lien
may be enforced as provided in Section 11.23. 7 below, entitled "LIEN ENFORCEMENT; FORECLOSURE
PROCEEDINGS."
12.23.4. NOTICE TO OWNER AFTER LIEN OF ASSESSMENT.

Not later than ten (1 0) calendar days after recordation of the Notice of Delinquent
Assessment with the County Recorder, a copy of the Notice of Delinquent Assessment and the recording
date thereof shall be mailed to all record Owners of the Condominium by certified or registered mailed, in
accordance with the manner set forth in Civil Code Section 2924b, or any successor statute or law.
12.23.5. PAYMENTS UNDER PROTEST.

An Owner who disputes an assessment imposed by the Association against
such Owner and/or such Owner's Condominium shall have the right to resolve such dispute through
(i) alternative dispute resolution as set forth in Civil Code Section 1354, (ii) civil action, and (iii} any other
dispute resolution procedure that may be available through the Association, as provided in Civil Code
Section 1366.3, or any successor statutes or laws.
12.23.6. RELEASE OF LIEN.

In the event the delinquent assessments and all other assessments which
have become due and payable with respect to the same Condominium together with all costs (including
attorneys' fees), late charges and interest which have accrued on such amounts are fully paid or otherwise
satisfied prior to the completion of any sale held to foreclose the lien provided for in this Article, the Board
shall record a further notice, similarly signed, stating the satisfaction and release of such lien.
12.23.7. LIEN ENFORCEMENT; FORECLOSURE PROCEEDINGS.

After the expiration of thirty (30) days following the recording of the Notice of
Delinquent Assessment with the County Recorder, the lien created by such recording may be foreclosed in
any manner permitted by law. including sale by the court, sale by the trustee designated in the Notice of
Delinquent Assessment, or sale by a trustee substituted pursuant to Civil Code Section 2934a. Any sale by
the trustee shall be conducted in accordance with the provisions of Civil Code Sections 2924, 2924(b ),
2924(c) and 1367, or any successor statute or law. The Association, acting on behalf of the Owners, shall
have the power to bid for the Condominium at a foreclosure sale, and to acquire and hold, lease, mortgage
and convey the same. Suit to recover a money judgment for unpaid assessments, costs. late penalties and
attorneys' fees shall be maintainable without foreclosing or waiving the lien securing the same.
12.24. ADDITIONAL CHARGES.

In addition to any other amounts due or any other relief or remedy obtained against an
Owner who is delinquent in the payment of any assessments. each Owner agrees to pay Additional Charges
incunred or levied by the Board including such additional costs. fees, charges and expenditures as the

Association may incur or levy in the process of collecting from that Owner monies due and delinquent.
Additional Charges shall include, but not be limited to, the following:
12.24.1. ATTORNEY'S FEES.

Reasonable attorneys' fees and costs incurred in the event an attorney(s) is
employed to collect any assessment or sum due, whether by suit or otherwise;
12.24.2. LATE CHARGES.

A late charge in an amount to be fixed by the Board in accordance with Civil
Code Section 1366, or any successor statute or law, to compensate the Association for additional collection
costs incurred in the event any assessment or other sum is not paid when due or within any "grace" period
established by law;
12.24.3. COSTS OF SUIT.

Costs of suit and court costs incurred as are allowed by the court;
12.24.4. INTEREST.
Interest to the extent permitted by law; and
12.24.5. OTHER.
Any such other additional costs that the Association may incur in the
process of collecting delinquent assessments or sums.
12.25. PRIORITY OF THE LIEN.

The lien of assessment herein shall be subordinate to the lien of any First Mortgage now or
hereafter placed upon any Condominium subject to assessment, and the sale or transfer of any
Condominium pursuant to judicial or nonjudicial foreclosure transfer (excluding a transfer by deed in lieu of
foreclosure) of a First Mortgage shall extinguish the lien of such assessments as to payments which became
due prior to such sale or transfer. No sale or transfer shall relieve such Condominium from lien rights for any
assessments thereafter becoming due nor from the lien of any subsequent assessment. Where the First
Mortgagee or other purchaser of a Condominium obtains title to the same as a result of foreclosure
(excluding a transfer by deed in lieu of foreclosure), such acquiror of title, his or her successors and assigns.
shall not be liable for the share of common expenses or assessments by the Association chargeable to such
Condominium which became due prior to the acquisition of title to such Condominium by such acquiror,
exempt except for a share of such charges or assessments resulting from a reallocation of such charges or
assessments which are made against all Condominiums.
12.26. WAIVER OF EXEMPTIONS.

Each Owner. to the extent permitted by law, waives, to the extent any liens created pursuant
to this Article, the benefit of any homestead or exemption laws of California in effect at the time any
assessment or installment thereof becomes delinquent. or any lien is imposed.
12.27. TAXATION AGAINST THE COMMON AREA.

In the event that any taxes are assessed against the Common Area or the personal property
of the Association, rather than against the individual Condominiums, said taxes shall be added to the
Regular Assessments, and, if necessary, a Special Assessment may be levied against the Condominium in
an amount equal to said taxes, to be paid in two (2) installments, thirty {30) days prior to the due date of each
tax installment, or as otherwise may be established by the Board.
44 7 4-4480 OREGON STREET

DECLARATION - 31 - 'Dec_4474-80_0regonSt.doc
12.28. PERSONAL LIABILITY OF OWNER.
No Owner may exempt himself from personal liability for assessments levied by the
Association, nor release the Condominium owned by him from the liens and charges hereof by waiver of the
use or enjoyment of any of the Common Area or by abandonment of his or her Condominium.
12.29. TRANSFER OF CONDOMINIUM.

After transfer or sale of a Condominium within the Project, the selling Owner or Owners shall
not be liable for any assessment levied on such Owner or Owner's Condominium after the date of such
transfer of ownership and written notice of such transfer is delivered to the Association. The selling Owner
shall still be personally responsible for all assessments and charges levied on his or her Condominium prior
to any such transfer.
12.30. CAPITALIZATION REQUIREMENT.

(a) As additional contingency to meet the initial expenses of the Association, including
those operating expenses and reserve requirements unforeseen or not fully contemplated in the proforma
budget(s) for the Project, upon acquisition of record title to a Condominium from Declarant, such Owner shall
contribute to the capital of the Association an amount equal to one-sixth (116) the amount of the then regular
annual assessment (excluding any Cost Center Assessments) for the Condominium as determined by the
Board. This amount shall be deposited by the buyer into the purchase and sale escrow and disbursed
therefrom to the Association. Within six (6) months after the close of the first sales escrow of a
Condominium by Declarant, as Seller, Declarant shall deposit into an escrow an amount equal to one-sixth
(1/6) of the then regular assessment for any and all Condominiums not yet sold. Escrow shall remit these
funds to the Association. Upon the close of escrow of any Condominium for which the capital contribution
was prepaid by Declarant, escrow shall remit to the Declarant the capital contribution collected from the
Owner.
(b) The capitalization funds set forth above are not to be considered paid in lieu of
annual Regular Assessments or any other assessment levied by the Association.
12.31. FINANCIAL ACCOUNTS.

The Board shall establish financial accounts ("Financial Accounts"), into which shall be
deposited all monies paid to the Association and from which disbursements shall be made, as provided
herein, in the performance of functions by the Association under this Declaration and the Bylaws. The
Financial Accounts shall be established in accounts at any banking, savings, brokerage or similar institution
("Institution"), provided such funds are fully insured (i) by the Federal Deposit Insurance Corporation or
similar Federal insuring agency, or (ii) by a comparable account insurer. Aggregate deposits held in any
single Institution shall not exceed the limit of deposit insurance coverage available. The Financial Accounts
shall include:
(a) An Operating Account for current Common Expenses of the Association;
(b) A Reserve Account for capital improvements, replacements, painting and repairs of
the Common Area; and
(c) Any Other Accounts that the Board may establish to the extent necessary under the
provisions of this Declaration.
(d) Except for purposes of transfer of funds upon receipt or disbursement thereof, the
Board shall not commingle any amounts deposited into any of the Financial Accounts with one another.
Nothing contained herein shall limit, preclude or impair the establishment of additional Financial Accounts by
the Declarant so long as the amounts assessed to, deposited into, and disbursed from any such Account are
earmarked for specified purposes authorized by this Declaration or the Bylaws.

12.32. USE OF RESERVE FUNDS.
Any reserve fund accounts maintained by the Association (including any capital accounts
maintained pursuant to the above Section entitled "Financial Accounts") shall be used for the purposes
and in the manner described in California Civil Code Section 1365.5, as it may from time to time be
amended.
~ USE RESTRICTIONS
13.1. USE OF CONDOMINIUMS.

No Condominium shall be occupied and used except for residential purposes by the Owners
and their Invitees, and no trade or business shall be conducted therein, except that Units may be used as a
combined residence and executive or professional office by the Owner thereof, so long as such use (a) does
not interfere with the quiet enjoyment by other Owners, (b) does not include unreasonable visitations by
clients. (c) is in compliance with the Zoning Codes of the City, and (d) is otherwise authorized by such
California statutory or common law that may take precedence over City requirements and/or this Declaration.
No health care facilities operating as a business or charity and serving the sick, elderly, disabled,
handicapped or retarded shall be permitted in the Project. The foregoing notwithstanding, Declarant may
use any of the Units owned or leased by Declarant as model homes and sales offices during that time period
described in the Section entitled "Declarant Exemption" in the Article herein entitled "GENERAL
PROVISIONS."
13.2. LEASE OF DWELLING.
13.2.1. REQUIREMENTS OF ALL LEASES.

Any Owner who wishes to lease his or her Condominium must meet each
and every one of the following requirements, and the lease will be subject to these requirements whether
they are included within a lease or not:
(a) All leases must be in writing;
(b) Unless the Owner remains in occupancy, the lease must be for the
entire Condominium, and not merely parts thereof. and shall include the Unit and its appurtenant Exclusive
Use Common Area(s), if any, and no such lease shall allow the tenant to forfeit the use of such Exclusive
Use Common Area;
(c) No lease shall be for a period of less than thirty (30) days;
(d) All leases shall be subject in all respects to the provisions of this
Declaration and the other Project Documents;
(e) All Owners who lease their Condominiums shall promptly (not later
than 10 days after entering into such lease) notify the Secretary of the Association in writing of the names of
all tenants and members of tenants' family occupying such Condominium(s) and shall provide the Secretary
of the Association with a complete copy of the lease. In addition, all Owners leasing their Condominium shall
promptly notify the Secretary of the Association of the address and telephone number where such Owner
can be reached.
13.2.2. FAILURE OF TENANT TO COMPLY WITH PROJECT

DOCUMENTS.
(a) Any failure of a tenant to comply with the Project Documents shall
be a default under the lease, regardless of whether the lease so provides. In the event of any such default,
the Owner immediately shall take all actions to cure the default including, if necessary, eviction of the tenant;

DECLARATION - 33- • Dec_44 7 4·80_ OregonSt.doc
(b) If any tenant is in violation of the prov1s1ons of the Project
Documents, the Association may bring an action in its own name and/or in the name of the Owner to have
the tenant evicted and/or to recover damages. If the court finds that the tenant is violating, or has violated
any of the provisions of the Project Documents, the court may find the tenant guilty of unlawful detainer
notwithstanding the fact that the Owner is not the plaintiff in the action and/or the tenant is not otherwise in
violation of tenant's lease. For purposes of granting an unlawful detainer against the tenant, the court may
assume that the Owner or person in whose name a contract (the lease or rental agreement) was made was
acting for the benefit of the Association. The remedy provided by this subsection is not exclusive and is in
addition to any other remedy or remedies which the Association has. If permitted by present or future law,
the Association may recover all its costs, including court costs and reasonable attorneys' fees incurred in
prosecuting the unlawful detainer action.
(c) The Association shall give the tenant and the Owner notice in
writing of the nature of the violation of the Project Documents, and twenty (20) days from the mailing of the
notice in which to cure the violation, before the Association may file for eviction.
(d) Each Owner shall provide a copy of the Project Documents to each
tenant of his Condominium. By becoming a tenant, each tenant agrees to be bound by the Declaration, the
Bylaws, the Rules of the Association and any other Project Document, and each tenant recognizes and
accepts the right and power of the Association to evict a tenant for any violation by the tenant of the
Declaration, the Bylaws, the Rules of the Association and any other Project Document. Notwithstanding the
foregoing, each Owner is responsible and liable to the Association for the acts or omissions of its tenant,
including reasonable attorneys' fees.
13.3. INSURABILITY.
No Unit, Exclusive Use Common Area or improvements situated thereon shall be occupied
or used for any purpose or in any manner which shall cause such improvements to be uninsurable against
loss by fire or the perils of the extended coverage endorsement to the California Standard Fire Policy form,
or cause the rate of insurance to increase, or cause any such policy or policies representing such insurance
to be canceled or suspended, or the company issuing the same to refuse renewal thereof.
13.4. PETS.
The following prov1s1on shall apply to Owners and to all Residents and Invitees of the
respective Owners, provided, however, an Owner may impose more stringent requirements on such Owner's
Residents and/or Invitees as such Owner may deem appropriate, notwithstanding the provisions of this
Section.
(a) Except as otherwise provided more stringently in the zoning ordinances of the City,
an Owner may keep and maintain in such Owner's Condominium domesticated pets such as dogs, cats or
other usual and ordinary household pets in accordance with the Association Rules and duly authorized by
Declarant or the Board in accordance with Section 9.5.3(c) hereinabove; provided, however, any Owner's pet
previously permitted by Rules in effect at the time such pet was authorized by Declarant or the Board to be in
such Owner's Unit prior to the adoption or repeal of a Rule that would preclude such pet, shall be exempt
from such Rule for the lifetime of such pet or pets. An Owner may keep and maintain any number of
aquarium-type fish; provided, however, an Owner shall review and consider the structural load limits and
internal drainage pertaining to such Owner's Unit and the proposed site of installation of an aquarium prior to
filling such aquarium(s) with water. The foregoing notwithstanding, (1) no pet may be kept, maintained or
bred for any commercial purpose; and, (2) notwithstanding any weight, number or commercial restrictions,
the Board may determine in writing that the weight, number and/or a commercial purpose may be reasonable
or unreasonable in any instance, the criteria of which shall be to the furtherance of these CC&RS, most
specifically of which shall be the provisions contained in (i) Sections 12.4(c) and 12.4(e) below, and
(ii) Section 12.13 herein entitled "Offensive Activities and Conditions."
(b) The foregoing notwithstanding, in accordance with CIVIL CODE §1360.5, no portion
of the CC&Rs shall prohibit an Owner from keeping at least one (1) pet within the Project, subject to

DECLARATION - 34- • Oec_4474·80_0regonStdoc
reasonable rules and regulations of the Association, including those prov1s1ons herein contained. The
language included in CIVIL CODE §1360.5 may not be construed to affect any other rights provided by Jaw
to an Owner to keep a pet within the Project.
{c) The foregoing notwithstanding, no pets may be kept on the Property which result in
an annoyance or are obnoxious to other Owners or Occupants; provided, however, that the Association
Rules may further limit or restrict the keeping of such pets. No pets shall be permitted in any area
designated in the Association Rules as being restricted to pets. No dog shall enter the Common Area except
while on a leash which is held by a person capable of controlling it.
(d) The Association or any Owner (including Declarant) may cause any unleashed or
tethered dog found within the Common Area to be removed to a pound or animal shelter under the
appropriate governmental jurisdiction by calling the appropriate authorities, whereupon the Owner may, upon
payment of all expenses connected therewith, repossess the dog.
(e) No dog whose prolonged barking (or other prolonged noise-producing pet)
unreasonably disturbs other Owners or occupants shall be permitted to remain in the Project.
(f) Persons bringing or keeping a pet within the Project shall prevent their pets from
soiling all portions of the Project where other persons customarily walk or otherwise occupy from time to time
and shall promptly clean up any mess left by their pets.
Each person bringing or keeping a pet within the Project shall be absolutely liable to the
Association and other Owners, Occupants and their respective Invitees for any damage to persons or
property caused by any pet brought upon or kept upon the Project by such person. Any Owner, Occupant or
their respective Invitees who maintain(s) any animal, insect or reptile within the Project, whether in
compliance with or in violation of this Declaration, shall indemnify and hold harmless the Association, its
officers, directors, the other Owners and Occupants from any claim brought by any person against them or
any one or more of them, for personal injuries or property damage caused by such animal, insect or reptile.
13.5. INTERFERENCE OF OTHER OCCUPANTS.

No Unit or Exclusive Use Common Area shall be used in such manner as to obstruct or
interfere with the enjoyment of occupants of other such areas or annoy them by unreasonable noise or
otherwise, nor shall any nuisance be committed or permitted to occur in any Condominium nor on the
Common Area.
13.6. SOUND ATTENUATION; HARD SURFACE FLOORING.

In any building structure where there are attached Units, sound may be audible between
such Units, particularly where the sound level of the source is sufficiently high and the background noise in
an adjacent Unit is very low. Each Unit Occupant shall endeavor to minimize any noise transmission from
such Occupant's Unit, and shall adhere to any of the rules and regulations set forth in the Association Rules
which are designed to minimize noise transmission. To minimize the noise transmission from a Unit, each
Occupant (other than Declarant) shall adhere to the following:
(a) There shall be no hard surface flooring (including, without limitation, tile or
hardwood floors) installed or as replacement of existing flooring in any Unit except for those hard surface
floors install by Declarant as part of the original construction of the Project. The foregoing notwithstanding,
hard surface flooring may be installed in the kitchen. bathroom, entryway or other area of a Unit, provided the
Owner of such Unit obtains the prior written consent of the Board in accordance with the submission
;equirements set forth in the Article herein entitled "ARCHITECTURAL AND DESIGN CONTROL." Such
Board consent must be based upon a finding by the Board that the Owner or Occupant desiring to install
hard surface flooring has submitted evidence to the Board's satisfaction that the hard surface flooring shall
be installed over adequate soundproofing material (such as a loaded, heavy (1 Jb per sq ft) vinyl
underlayment or soundboard insulation) sufficient enough to mitigate the transmission of impact sound on
the hard surface floor covering, to such extent that, for example, spike, high-heeled shoes walking across a
hardwood surface would either not be heard or significantly muffled within any Unit below or adjacent.

(b) In all Units, no holes or other penetrations shall be made in demising walls (party
walls) or ceilings without the written consent of the Board. Acoustical sealant shall be packed around the
point of penetration of all pictures and other items hung from the wall that require nailing or screwing.
(c) In all Units, loudspeakers for music reproduction and television shall not be
supported from or contact demising (party) walls and shall be elevated from the floor by a proper acoustic
platform.
(d) In all Units, pianos shall have at least 1/2-inch neoprene pads under the supports to
minimize vibration transmission into the structure.
13.7. VIBRATIONS
No Owner or Occupant shall attach to the walls or ceilings of any Unit any fixtures or
equipment which will cause (a) vibrations or noise which may be felt or heard from the Common Area. or
(b) unreasonable annoyance to the Occupants of other Units.
13.8. SIGNS.
13.8.1. ON THE COMMON AREA
Subject to the provisions of CIVIL CODE §§712 and 713, no signs,
placards, decals or other similar objects, visible from the Common Area, neighboring property or streets,
shall be erected or displayed on the Common Area (including any Exclusive Use Common Area), without the
prior written permission of the Board; provided however, the following signs shall be permitted, all of the
foregoing of which shall conform with Applicable Law:
(a) Such signs as may be required by legal proceedings;
(b) One or more signs displayed by an Owner or the Owner's agent, on
such Owner's Condominium or on real property owned by another with that Owner's consent. which is
reasonably located, in plain view of the public, and is of reasonable dimensions and design, advertising the
following: (i) that the Condominium is for sale, lease or exchange by the Owner or the Owner's agent (ii)
directions to the Condominium. (iii) the Owner's or agent's name, and (iv) the Owner's or agent's address
and telephone number.
13.8.2. FROM A CONDOMINIUM UNIT

Subject to the provisions of CIVIL CODE §1353.5, as it may be amended,
an Occupant may post or display from within his or her Condominium Unit such non-commercial signs,
posters. flags (excluding the U.S. Flag), banners or other similar objects, except for those that would violate
any local, state or federal law or pose a potential risk to public health or safety. For purposes of this
Section, a non-commercial sign, poster, flag, or banner may be made of paper, cardboard, cloth, plastic, or
fabric, but may not be made of lights, roofing, siding, paving materials, flora. or balloons. or any other similar
building, landscaping, or decorative component. or include the painting of architectural surfaces.
Anything contained in this Declaration to the contrary notwithstanding, Declarant and its
authorized agents, shall have the right during the Marketing Period to install and maintain Development and
Marketing Improvements.
13.9. EXTERIOR LIGHTING.

Any exterior lighting installed on the Common Area (including Exclusive Use Common
Areas) shall either be indirect, shielded or of such controlled focus and intensity as to prevent glare on
surrounding properties and unreasonable disturbance to occupants of other Dwellings in the neighborhood.
13.10. ANTENNAS, SATELLITE DISHES.

There shall be no outside television or radio antennas, masts. satellite dishes, transmitter
tower or facility installed or ma'1ntained in the Project for any purposes whatsoever without approval of the

Board. However, in considering whether to approve an antenna or to impose requirements on such
approval, the Board shall not violate any applicable law or regulation, including, but not limited to, any
Applicable Law, including regulations of the Federal Communications Commission.
13.11. REMODELING THE COMMON AREA.

Except as otherwise specifically provided herein, nothing herein contained shall give the
Owner the right to paint, decorate, remodel, landscape, adorn, alter, construct in or remove from any part or
parcel of the Common Area without the written consent of the Architectural Committee.
13.12. POST TENSION SLABS.

Certain portions of the Common Area foundation concrete slabs of a Condominium Building
may have been constructed with post-tensioned concrete slab system ("System'~. The System involves
placing steel cables under high tension in the concrete slab comprising the first or lowest floor/foundation of
a Condominium Building {which may include the floor/foundation below one or more Units). Any attempt by
an Owner or other person to alter or pierce the foundation (e.g., saw cutting or drilling) could damage the
integrity of the System and/or cause serious injury or damage to persons and property. No Owner shall cut
into or otherwise disturb the System upon which the Dwelling on his Condominium is constructed. Each
Owner shall be responsible for determining whether his Unit has been constructed with such a System. The
Owner of each Unit agrees, by acceptance of a Deed to the Unit, that neither Declarant nor any contractor of
Declarant shall be responsible for any damage or injury resulting from or arising in connection with the
alteration or piercing by the Owner or Invitee thereof of the slab or the foundation of a Condominium
Building. Each Owner shall hold harmless from and indemnify Declarant, the Board, the Architectural
Committee and the Association against all claims, demands, losses, costs (including attorney's fees),
obligations and liability arising out of or in connection with the failure of the Owner to comply with the
provisions of this Section.
13.13. OFFENSIVE ACTIVITIES AND CONDITIONS.

No noxious or offensive activity shall be carried in any Condominium, or on the Common
Area. No odor shall be permitted to arise from any Condominium which renders the Condominium or any
portion thereof unsanitary, unsightly or offensive to any portion of the Project or to its occupants. No noise or
other nuisance shall be permitted to exist or operate upon any portion of a Condominium so as to be
unreasonably offensive or detrimental to any other part of the Project or to its occupants. No exterior
speakers, horns, whistles, bells or other sound devices (other than security devices used exclusively for
security purposes) which unreasonably disturb other Owner or their tenants shall be located, used or placed
in any Condominium or the Common Area. Alarm devices used exclusively to protect the security of a
Dwelling and its contents shall be permitted, provided that the devices do not produce annoying sound or
conditions as a result of frequently occurring false alarms.
13.14. GARBAGE AND REFUSE DISPOSAL.

(a) All rubbish, trash and garbage shall be regularly removed from Property, and shall
not be allowed to accumulate thereon. Trash, garbage and other waste shall not be kept except in sanitary
containers designed for such purpose.
(b) The Board may require, pursuant to its Rules, that all garbage and other wastes be
segregated and such segregated elements be separately packaged (for example, all cans, glass, paper
products and other items of trash be segregated from each other and separate packaged for pickup and
disposal by a garbage and waste disposal company or a department of any govemmental agency having
jurisdiction over the Project).
(c) All equipment for storage or disposal of such materials shall be kept in a clean and
sanitary condition. All equipment, trash bins or cans shall be kept screened and concealed from view of
other Dwellings and the Common Area.

13.15. WOOD OR STORAGE PILES.
All wood or storage piles shall be kept screened and concealed in such manner as to not be
visible from neighboring property and the Common Area.
13.16. FENCES; WALLS.

No fences or walls shall be erected or maintained upon the Property except such as are
installed in accordance with the initial construction of improvements on the Property or as approved by the
Board.
13.17. CLOTHES LINES.

No exterior clothes lines shall be erected or maintained, and there shall be no outside drying
or laundering of clothes anywhere in the Project, except in such areas which may be approved by the Board.
13.18. BALCONY, PATIO AND LAUNDRY AREA.

Balcony, Patio and Laundry (room) Exclusive Use Common Areas may be used for
placement of lawn/patio style furniture, barbecues, potted plants, and other usual patio equipment and
furniture; provided, however, no potted plants may be placed upon or over any Balcony, Patio and Laundry
room area railing above an area where someone or something may be injured or damaged in the event such
potted plants or other objects should fall down. An Owner shall not allow any water to run off any Balcony,
Patio and Laundry room area onto the Common Area. Owners shall place trays under all potted plants.
Fireplace wood may a/so be stored, provided it shalf be kept in a container which may be sealed so
to mitigate the infestation of termites and other pests, screened and concealed from view of other
Condominiums, the Common Area, public and private streets. Balcony, Patio and Laundry room areas
may not be used for storage purposes. No draping of towels, carpets, laundry or other articles over railings
or walls shall be allowed. The foregoing notwithstanding, the Board. shall, in accordance with the Rules and
Article 13.11 herein entitled "ARCHITECTURAL AND DESIGN CONTROL," have the ultimate authority to
establish, determine, approve and/or disapprove such rules and regulations affecting the placement. storage
and nature of items permitted in the Balcony, Patio and Laundry room areas.
13.19. WINDOW COVERINGS.

All drapes, curtains, window coverings, shutters or blinds visible from the Common Area or
public areas shall be beige or white or neutral-toned in color or so tined. Other colors, materials and patterns
may be used, provided they are approved by the Board or its delegated committee. No window shall ever be
covered with paint or aluminum foil; provided, however, non-reflective solar films shall be permitted.
13.20. WATER QUALITY PROTECTION

(a) To protect the quality of our nation's waters, a number of federal, state and local
laws, ordinances, rules. regulations and orders prohibit the discharge of anything other than natural rain
water into storm drain systems, including gutters and streets that drain into storm drains. These
governmental requirements include the Clean Water Act, the National Pollution Discharge Elimination
System, orders and permits of the State Water Resources Control Board and the Regional Water quality
Control Board, the ordinances and regulations of the City and County, and any Storm Water Pollution
Prevention Plan covering the Project. Each Occupant shall comply with all such governmental
requirements. As of the date of recordation of this Declaration, the California State Water Resource Control
Board has an Internet Web site which contains information. publications and links regarding water quality
protection requirements at http:l/www.swrcb.ca.gov/.
(b) Most discharges of anything other than natural rain water into storm drain systems
are unlawful and may result in significant penalties and fines. No Occupant shall discharge or permit to be
discharged (for example by a contractor working for the Occupant) any of the following into any street. gutter,
storm drain or storm water conveyance system: toxic or hazardous chemicals, hydrocarbon compounds such

DECLARATION -38- 'Dec_4474-BO_OregonStdoc
as gasoline, motor oil, antifreeze, solvents, paints, paint thinners, wood preservatives, fertilizers, lawn
clippings, yard waste, detergents, pet waste, or other similar materials or pollutants.
(c) Each Occupant shall comply with and cause its contractors to comply with all
federal, state, County and City requirements, and the requirements of any other applicable governmental
agency regarding the use, storage and disposal of pesticides, fungicides, herbicides, insecticides, fertilizers
and other such chemicals. Occupants should consult with the City, other governmental authorities, and their
refuse hauler regarding the proper disposal of any toxic or hazardous materials.
(d) Each Occupant shall ensure that any landscaping and construction materials
brought into the Project by the Occupant or its contractors shall be properly contained to prevent spillage into
any street, gutter or storm drain system. Should a spillage occur, the Occupant shall (or cause the contractor
responsible for the spill to) sweep the spilled material and place it in a container; it shall not be washed into
any storm water curb drain inlet. Each Owner shall prevent erosion and the runoff of soil and other sediment
from the Owner's Condominium into any street, gutter or storm drain system.
(e) Each Owner shall indemnify, protect, defend and hold Declarant harmless from any
and all claims, liability, actions, penalties or damages (including attorney's fees, experts' fees and costs of
suit) arising from or attributable to the Occupant's failure to comply with the requirements of this Section.
13.21. BOARD PERMITTED TO EXPAND VERTICAL LIMITS.

The Board shall have the right to allow Owners to exclusively use portions of the Common
Area above or below the vertical limits of any Exclusive Use Area.
13.22. NO CHANGES IN PLUMBING WITHOUT ASSOCIATION APPROVAL

No internal plumbing or plumbing fixtures shall be revised in any Unit without approval by the
Board or its delegated committee if such revision would result in increased water consumption.
13.23. CAR MAINTENANCE AND POWER EQUIPMENT.
13.23.1. CAR MAINTENANCE.

No car maintenance, servicing, repamng, assembling, disassembling,
modifying, restoring, other than emergency work, shall be permitted in a Condominium or the Project, except
with prior written approval of the Board for minor repairs only. The foregoing shall not be deemed to prevent
the washing or polishing of motor vehicles together with those activities normally incident to such activity.
The length of time allowed for emergency or approved minor repair work shall be determined by the Board
through the Rules. The foregoing notwithstanding, no emergency or repair work shall be permitted in any
continuous period of twenty-four (24) hours.
13.23.2. POWER EQUIPMENT.

No power equipment (other than "hand-held" power tools) or other similar
apparatus may be used in the Community, except with the prior written permission of the Board or its
delegated committee; in deciding whether to grant approval, consideration shall be given to the effect of
noise. air pollution. dirt or grease, fire hazard, interference with radio, television reception and similar
objections. The foregoing notwithstanding, the use of power equipment in connection with any construction
activity authorized by the Declarant, the Board or its delegated committee shall be permitted, provided the
same is conducted exclusively between the hours of 7 a.m. and 6 p.m., except in the case of an Emergency.
13.24. USE OF COMMON AREA.

Except as otherwise provided herein, the Common Area shall be improved and used only for
the following purposes:
(a) Affording vehicular passage, temporary and emergency parking, and pedestrian
movement within the Project, including access to the Dwellings;

DECLARATION - 39- 'Dec_4474~80_0regonS!.doc
(b) Recreational use by the Owners and occupants of a Dwelling and their Invitees,
subject to the Rules;
(c) Beautification of the Common Area and providing privacy to the residents of the
Project through landscaping and such other means as the Board or its delegated committee shall deem
appropriate;
(d) Parking of automotive passenger vehicles in areas provided therefor as may be
designated and approved by the Board by such persons, upon such terms and conditions and for such fees
as may from time to time be determined by the Board;
(e) As Exclusive Use Common Areas to be used in the manner hereinafter described.
Nothing herein contained shall be deemed to allow persons other than the Owner of a Unit to which an
Exclusive Use Common Area is appurtenant (or his Invitees) to the enjoyment and use thereof;
(f) No part of the Common Area shall be obstructed so as to interfere with its use for
the purposes hereinabove permitted, nor shall any part of the Common Area be used for storage purposes
(except as incidental to one of such permitted uses, or for storage of maintenance equipment used
exclusively to maintain the Common Area or in storage areas designated by the Board), nor in any manner
which shall increase the rate of which insurance against loss by fire, or the perils of the extended coverage
endorsement to the California Standard Fire Policy form, or bodily injury, or property damage liability
insurance covering the Common Area and improvements situated thereon may be obtained, or cause such
premises to be uninsurable against such risks or any policy or policies representing such insurance to be
canceled or suspended or the company issuing the same to refuse renewal thereof.
13.25. EXCLUSIVE USE LICENSES.

The Board shall have the right to allow one or more Owners to exclusively use portions of
the otherwise nonexclusive Common Area, provided that such portions of the Common Area are nominal in
area and adjacent to the Owner's Unit, and provided further, that such use does not unreasonably interfere
with any other Owner's use or enjoyment of the Project.
13.26. INTERIOR OF CONDOMINIUMS; MODIFICATIONS; HANDICAPPED ACCESS.

Subject to the provisions of this Declaration, applicable provisions of law and Civil Code
Section 1360, as it may from time to time be amended, each Owner shall have the right, at his sole cost and
expense:
(a) To make any improvement or alteration within the boundaries of his Living Unit that
do not impair the structural integrity or mechanical systems or lessen the support of any portion of the
Common Area;
(b) To maintain, repair, repaint, paper, panel, plaster, tile and finish the interior surfaces
of the ceiling, floors, window frames, trim, door frames and perimeter walls of the Unit and the surfaces of the
bearing walls and partitions located within the Unit and to substitute new finished surfaces in place of those
existing on said ceiling, floors, walls, and doors of said Unit;
(c) To modify his Living Unit to facilitate access for persons who are blind, visually
handicapped, deaf, or physically disabled, or to alter conditions which could be hazardous to these persons.
These modifications may also include modifications of the route from the public way to the door of the Living
Unit for the purposes of this Section if the Unit is on the ground floor or already accessible by an existing
ramp or elevator. The right granted herein is subject to the following conditions:
(1) The modifications shall be consistent with applicable building code

requirements;
(2) The modifications shall be consistent with the intent of otherwise

applicable provisions of this Declaration pertaining to safety or
aesthetics;

(3) Modifications external to the Living Unit shall not prevent reasonable
passage by other residents, and shall be removed by the Owner
when the Condominium is no longer occupied by persons requiring
those modifications who are blind, visually handicapped, deaf, or
physically disabled.
Any Owner who wishes to modify his Living Unit pursuant to this Section, shall comply with
the prov1s1ons of the "Architectural And Design Control" Article hereafter regarding the review and
approval by the Board or its delegated committee of such modifications, which approval shall not be
unreasonably withheld.
13.27. MERGING UNITS.

The Owner of two or more contiguous Living Units may, with the consent of the Board or its
delegated Committee {which consent shall not be unreasonably withheld), at his expense, and in accordance
with detailed plans approved by the Board or its delegated committee, merge such Units into one living area.
The Owner who has connected the Units in such manner shall have an easement for ingress, egress and
passage through that portion of the Common Area which has been pierced in the process of constructing
said merger. Said easement shall exist only for so long as the Units are merged into one Unit. Such
easement shall automatically be terminated and the Units completely reconstructed to their original as-built
condition at such time that the Owner of such Units sells, transfers or conveys any one (1) of the Units
comprising such merged Unit, in which case, reconstruction of the Common Area shall be accomplished, at
such Owner's expense, prior to the recordation of the deed or instrument of transfer.
No bearing walls shall be removed, altered or damaged in the course of such construction.
No modifications to any portion of the Common Area shall be made which affect the structural integrity of the
Project or impair any other Owner's reasonable use of such Common Area, or the utilities that may be
located therein, or the value of the Project. All costs and expenses of such modifications, and subsequent
restoration of said modifications shall be bome by the Owner of the Units so merged. At the request of the
Board, after approval of the proposed modifications by the Board and prior to commencement of work, the
Owner making such modifications shall post a bond or bonds in an amount acceptable to the Board to
protect the Association and the Project against liens and to insure completion of the work. In merging Units,
an Owner shall have such reasonable access to other Units that he does not own as may be required to
accomplish the modifications approved by the Board or its delegated committee. Such modifications shall
not, however, change the status of Units which shall continue to be treated legally as separate Units, each
required to pay its separate assessment.
13.28. EXCLUSIVE USE COMMON AREAS.

Each Exclusive Use Common Area shall be (a) appurtenant to the Unit with which the
Exclusive Use Common Area is conveyed, and (b) used only for the purposes set forth in this Declaration.
The right to so use an Exclusive Use Common Area shall be exercisable only by the Owner of the
Condominium appurtenant thereto and/or said Owner's tenants and licensees. Conveyance of a
Condominium shall effect conveyance of Exclusive Use Common Areas appurtenant thereto and transfer all
rights thereto to the vested Owner of the Condominium. Any license thereto shall be terminated upon such
conveyance. No Exclusive Use Common Area nor any rights thereto (other than said revocable licenses)
shall be transferred or conveyed apart from the Condominium to which it is appurtenant. Each Exclusive
Use Common Area shall be deemed to be Common Area for all those purposes set forth in this Declaration
which are not inconsistent with this Article or the "ARCHITECTURAL AND DESIGN CONTROL'' Article
hereaftei. Except as provided in this Section and in the "Interior of Condominiums; Modifications;
Handicapped Access" Section above, nothing contained herein shall give any Owner the right to paint,
decorate, remodel or alter said Exclusive Use Common Area or any other part of the Common Area without
the prior written consent of the Board or its delegated committee in accordance with the provisions of the
"ARCHITECTURAL AND DESIGN CONTROL" Article herein.

DECLARATION -41 - ' Dec_44 74,Bo_ OregonSt.doc
13.29. VEHICLE RESTRICTIONS.
13.29.1. PROHIBITED VEHICLES.

No trailer, recreational vehicle, camper, camper shell alone or when on a
vehicle and it is higher than the cab or longer than the factory bed of that vehicle, bus, truck over% ton, all-
terrain vehicle (A1V), boat trailers, commercial vehicles (except as described in "Permitted Vehicles"
below), permanent tent or similar equipment shall be permitted to remain upon any area within the
Community other than temporarily for purposes of loading, unloading. ''Temporary parking" shall mean
parking of vehicles belonging to Invitees or Owners, delivery trucks, service vehicles and other commercial
. vehicles being used in the furnishing of services to the Association or the Owner and parking of vehicles
belonging to or being used by Owners for loading and unloading purposes only. No noisy or smoky vehicles
shall be operated in the Community.
13.29.2. RESTRICTED VEHICLES.

No inoperable or unlicensed vehicle shall be permitted to remain upon any
area within the Community in such a manner that it is visible from the Common Area, neighboring property
and public roads. Motorcycles and motorbikes shall be permitted, provided they are operated at noise levels
not exceeding 45 decibels. The storing, placing or parking of any vehicle, or any part thereof, which is
disabled, unlicensed, unregistered, inoperative, or from which an essential or legally required operating part
is removed, shall be prohibited unless conducted within a garage.
13.29.3. PERMITIED VEHICLES.

Automobiles, standard-sized vans, boats on trailers and pickup trucks shall
be permitted vehicles within the Community. Permitted commercial vehicles shall include automobiles or
standard sized vans and pickup trucks which are used both for business and personal use, provided that any
signs or markings of a commercial nature on such vehicles shall be unobtrusive and inoffensive as
determined by the Board.
13.29.4. CONSTRUCTION AND SALES VEHICLES.

Trailers or temporary structures for use incidental to the actual construction
or reconstruction of Improvements in the Project may be erected with the approval of the Board or its
delegated committee, but no such temporary structure shall remain in the Project for a longer period of time
than is customarily required to construct like or similar Dwellings. The foregoing notwithstanding, Declarant
or Declarant's successor in interest may maintain trailers or temporary structures within the Project which are
incidental to the completion of the Project or for initial construction on property owned by Declarant and
situated in the vicinity of the Project.
13.30. GARAGES.
Garage areas shall be used to park automobiles, standard sized pickup trucks, boats on
trailers or standard sized vans; provided that such vehicles may be fully enclosed or contained therein and
not interfere with the reasonable access to adjacent vehicles, and such vehicles to the contrary shall not be
permitted in the Project. The garage areas shall not be converted to any use other than for the parking of
motor vehicles. No owners or their tenants shall park more vehicles in the Community at any one time than
the number of vehicles that their Garage area(s), as applicable, was designed to accommodate. No Owner
shall block or impede access of fire fighting equipment to private streets and fire hydrants within the
Common A1ea. The Board may, from time to time, establish rules and regulations for the operation and
parking of vehicles in the Common Areas and such activities related thereto. Any permission from the Board
for use of an unassigned parking space, if any, will create only a license to use such parking space,
revocable at any time by the Board with three (3) days' written notice.

DECLARATION -42- A Dec_4474-BO_OregonSt.c!oc
13.31. STORAGE AREAS; STORAGE UNITS.
Storage Areas I Storage Units shall be used only for the storage of personal property. In no
event shall a Storage Area be used for the storage of any hazardous materials or any other noxious, toxic, or
odorous substances.
13.32. TOWING.
(a) Any vehicle within the Community parked in violation of this Declaration or the Rules
and Regulations of the Board may be removed as provided for in accordance with the provisions of California
Vehicle Code Section 22658.2 and any amendments thereto, or in accordance with City ordinances.
(b) The foregoing notwithstanding, the Association may cause the removal, without
notice, of any vehicle parked in a marked fire lane, within fifteen (15) feet of a fire hydrant, or in a manner
which interferes with any entrance to or exit from the Project or any Condominium Unit, parking space,
garage or driveway located thereon.
(c) The Association shall not be liable for any damages incurred by the vehicle owner
because of the removal in compliance with this Section or for any damage to the vehicle caused by the
removal, unless such damage resulted from the intentional or negligent act of the Association or any person
causing the removal of or removing the vehicle. If requested by the owner of the vehicle, the Association
shall state the grounds for the removal of the vehicle.
13.33. LIABILITY FOR DAMAGE TO COMMON AREA.

Each Owner shall be legally liable to the Association for any damages to the Common Area
or to any Improvements therein that may be sustained by reasons of the negligence of that Owner and/or
such Owner's Invitees, as such liability may be determined under California law. Each Owner, by
acceptance of deed to such Owner's Condominium, agrees: (a) to be responsible for compliance with the
provisions of this Declaration, the Articles, Bylaws and Rules of the Board or any Architectural Standards,
and for compliance by such Owner's Invitees, (b) to hold each other Owner harmless from, and to defend
each other Owner against, any claim of any person for personal injury or property damage occurring within
such Owner's Unit and/or Exclusive Use Common Area appurtenant thereto, unless the injury or damage
occurred by reason of the negligence of any other Owner; and (c) after written notice and an opportunity for
a hearing as provided in Section 9.5.2 herein entitled "Penalties Against Members," to pay any fines and
penalties assessed pursuant hereto, the Bylaws or the Rules or Architectural Standards, for any violation by
such Owner or such Owner's Invitees.
14. ARCHITECTURAL AND DESIGN CONTROL

14.1. GENERAL.
The powers and duties set forth in this Article shall be vested in, and exercised by the Board
of Directors of the Association; provided, however, the Board may, upon unanimous approval thereof,
delegate its powers and duties to an Architectural Committee consisting of not less than three (3) nor more
than five (5) members (in the event the Board elects to delegate such powers to an Architectural Committee,
prior to conversion of the Class B membership in the Association to Class A membership, Declarant may
appoint all of the original members of the Committee and all replacements until the first anniversary of the
initial conveyance of a Unit in the Project; additionally, Declarant reserves to itself the power to appoint a
majority of the members to the Committee until ninety percent (90%) of all the Condominiums in the Project
have been sold or until the fifth anniversary of the initial conveyance of a Unit in the Project, whichever first
occurs. After one (1) year from the initial conveyance of a Unit in the Project, the Board shall have the power
to appoint one (1) member to the Architectural Committee until ninety percent (90%) of all of the
Condominiums in the development have been sold or until the fifth anniversary date of the initial conveyance
of a Unit in the Project, whichever first occurs. Thereafter, the Board shall have the power to appoint and
remove all of the members of the Architectural Committee. Members appointed to the Architectural
Committee by the Board shall be from the membership of the Association. Members appointed to the

DECLARATION -43- • Dec_4474-SO_OregonSt.doc
Architectural Committee by the Declarant need not be members of the Association. A majority of the
Architectural Committee may designate a representative to act for it. In the event of death or resignation of
any member of the Architectural Committee, the successor shall be appointed by the person, entity or group
which appointed such member until Declarant no longer has the right to appoint any members to the
Architectural Committee, and thereafter the Board shall appoint such a successor).
14.2. RESTRICTED ACTIVITY.

No building, fence, wall, obstruction, outside or exterior wiring, patio, patio cover, tent,
awning, carport, carport cover, trellis or other similar type of above ground improvement or structure of any
kind, or exterior alteration shall be commenced, erected, placed, painted or maintained upon the Project, nor
shall any alteration or improvement of any kind be made thereto, nor shall any outdoor umbrellas be erected,
extensive landscaping of exclusive use area(s), if any, visible from the street or from the Common Area be
undertaken, until the same has been approved in writing by the Board.
14.3. PLAN SUBMISSION; REVIEW.

Complete preliminary plans and specifications showing the nature, kind, shape, color, size,
height, materials to be used and location of any proposed improvements or alterations shall be submitted to
the Board for approval as to quality of workmanship, design and harmony of external design with existing
structures, and as to location in relation to surrounding structures, topography, and finish grade elevation. In
the event the Board fails to approve or disapprove the preliminary plans and specifications within thirty (30)
days after the same have been duly submitted to it in accordance with any Architectural Standards regarding
such submission adopted by the Board, such preliminary plans and specifications shall be deemed to have
been approved by the Board. Thereafter, the Owner of the Unit for which such preliminary plans and
specifications have been approved may proceed with the preparation of final plans and specifications, and
upon completion thereof, submit such final plans and specifications to the Board for conformance review to
the preliminary plans and specifications. In the event the Board fails to approve or disapprove the final plans
and specifications within forty-five (45) days after the same have been duly submitted to it in accordance with
any Architectural Standards regarding such submission adopted by the Board, such final plans and
specifications shall be deemed to have been approved by the Board and the related covenants shall be
deemed to have been fully complied.
14.4. BOARD APPROVAL.

The Board shall approve proposals or plans and specifications submitted for its approval
only if it deems that the construction, alteration, addition or other construction activity contemplated thereby
in the locations indicated will not be detrimental to the appearance of the Project and surrounding real
property as a whole, and that the appearance of any structure or other improvement will be in harmony with
the surrounding structures and improvements.
Notwithstanding the foregoing, no improvements may be made within any Unit that will
cause excessive noise to be transmitted to other Units (e.g. the installation of hard flooring within Units
above ground level).
14.5. APPROVED CONDITIONS.

The Board may condition its approval of proposals or plans and specifications on such
changes thereto as it deems appropriate, and may require submission of additional plans and specifications
or other information prior to approving or disapproving materials submitted. The Board may adopt, amend or
supplement its Architectural Standards (a) conceming design and materials standards, rules and guidelines
for construction activities, (b) setting forth procedures for the submission of plans for approval, and (c)
specifying additional factors which it will take into consideration in reviewing submissions. The Board may
require such detail in plans and specifications submitted for its review as it deems proper, including, without
limitation, floor plans, site plans, drainage plans, elevation drawings aM description or samples of plantings,
exterior materials and colors. Until receipt by the Board of all plans, specifications or other materials deemed
necessary by the Board, the Board may postpone review of any plans submitted for approval.

DECLARATION -44- 'Dec_4474-80_0regonSt.doc
14.6. EXEMPTED FROM REVIEW.
No permission or approval shall be required to repaint or rebuild any Improvement in
accordance with Declarant's original color scheme or plans and specifications, or as previously approved by
the Board. Nothing contained herein shall be construed to limit the right of an Owner to paint the interior of
his Living Unit any color desired, or to improve or alter any improvements within the interior boundaries of the
Owner's Living Unit, provided such improvement or alteration does not impair the structural integrity of any
Common Area, the utilities, or other systems servicing the Common Area or other Condominiums, and does
not involve altering any Common Area (including bearing walls). The provisions of this Article shall not apply
to the initial construction by Declarant of any improvements in the Project, and the Board shall have no
authority or right to approve or disapprove thereof.
14.7. DUTIES.
It shall be the duty of the Board to consider and act upon any and all proposals or plans
submitted to it pursuant to this Declaration and any Architectural Standards adopted by the Board, to insure
that any improvements constructed on the Condominium by anyone other than Declarant conform herewith,
to perform other duties delegated to it by Association within the time periods set forth herein, and to carry out
all other duties which may be imposed upon it by this Declaration. The Board, in its own name or on behalf
of the Association, may exercise all available legal and equitable remedies to prevent or remove any
unauthorized and unapproved construction or improvements on the Property or any portion thereof. The
Board shall have the right, upon reasonable notice, to inspect any and all improvements made by an Owner.
The Board shall have a duty to keep and maintain a record of all action from time to time taken by the Board
at all meetings or otherwise.
14.8. COMPENSATION.
Board members shall receive no compensation for services rendered, other than
reimbursement by the Association for expenses incurred by them in the performance of their duties
hereunder. Provided, however, any Board member may receive compensation in the event he or she
renders services in a professional capacity.
14.9. FEE FOR REVIEW.

The Board shall have the right to establish a reasonable fee for the review and approval of
plans and specifications which must be submitted to it pursuant to the provisions of this Article or the Bylaws,
which shall be reasonably related to the duties performed and to cover any expense incurred in obtaining
professional review assistance from licensed engineers, architects or contractors.
14.10. ARCHITECTURAL STANDARDS.

The Board may, from time to time and in its sole discretion, adopt, amend and repeal, by
unanimous vote, rules and regulations to be known as "Architectural Standards or Standards" Said
Standards shall interpret and implement the provisions of this Article by setting forth the standards and
procedures for Board review and guidelines for architectural design, landscaping, color schemes, exterior
finishes and materials and similar features which are recommended for use in the Project; provided,
however, that said Architectural Standards shall not be in derogation of the standards required by this
Declaration. The Architectural Standards may provide for the preapproval or exemption from approval of
certain specified types or categories of improvements, provided that such preapproved or exempted
construction activities are implemented by the affected Owner in conformance with the standards for design,
materiais and other criteria established in the Architecturai Standards for such preapproved or exempted
construction activities. The Board may from time to time adopt, supplement or amend the Architectural
Standards to establish, expand, limit or otherwise modify the categories and criteria for any preapproved or
exempted construction activities.

14.11. DESIGN CRITERIA.
The Board shall review and approve or disapprove all plans submitted to it for any proposed
improvement. alteration, addition or other construction activity on the basis of satisfaction of the Board with
any of the following, as may be appropriate: grading plan, location of the improvements on the Property,
finished ground elevation, color scheme, finish. design, proportions, architecture. shape, height, style,
appropriateness of proposed improvements, affect on adjoining Units, Condominium Buildings and/or other
Improvements within the Property, the materials to be used, the kinds. pitch or type of roof proposed, the
planting, landscaping, size, height or location of vegetation, and on the basis of aesthetic considerations and
· the overall benefit or detriment to the Project and surrounding real property generally which would result from
such improvement, alteration, addition or other construction activity. Although the Board shall take into
consideration the aesthetic aspects of the architectural designs, placement of buildings, landscaping, color,
schemes, exterior finishes and materials, and similar features, it shall not be responsible for reviewing, nor
shall its approval of any plans or design be deemed approval of any plan or design from the standpoint of
adequacy of drainage, structural safety or conformance with building or other codes. The Board approval of
any particular construction activity shall expire and the plans and specifications therefor shall be resubmitted
for Committee approval if substantial work pursuant to the approved plans and specifications is not
commenced within one (1) year after the Boards approval of such construction activity. All construction
activity shall be performed as promptly and as diligently as possible and shall be completed within such
reasonable period of time specified by the Board.
14.12. VARIANCES.
The Board may authorize variances from compliance with any of the architectural provisions
of this Declaration when circumstances such as topography, natural obstructions, hardship, aesthetic or
environmental considerations may require, which variances shall not be unreasonably withheld by the Board.
Such variances must be in writing, and must be signed and acknowledged by at least a majority of the
members of the Board. The granting of a variance shall not operate to waive any of the terms and provisions
of this Declaration for any purpose except as to the particular property and particular provision covered by
the variance, nor shall it affect in any way the Owner's obligation to comply with all laws and regulations of all
appropriate governmental jurisdictions.
14.13. ESTOPPEL CERTIFICATE.

Within thirty days after written demand is delivered to the Board by any Owner, and upon
payment to the Association of a reasonable fee (as fixed from time to time pursuant to the Section
hereinabove entitled "Fee for Review"), the Board shall provide the Owner with an estoppel certificate
certifying that as of the date thereof, either: (a) all improvements made and other work completed by said
Owner comply with this Declaration, or (b) such improvements or work do not so comply, in which event the
certificate shall also identify the non-complying improvements or work and set forth with particularity the
basis of such non-compliance. Any purchase from the Owner, or from anyone deriving any interest in said
Condominium through him, shall be entitled to rely on said certificate with respect to the matters therein set
forth, such matters being conclusive as between the Association and Owner and such Persons deriving any
interest through them.
14.14. LIABILITY.
The Board shall not be liable to the Association or to any Owner for any damage, loss or
prejudice suffered or claimed on account of: (a) the approval or disapproval of any plans. drawings and
speciftcations, whether or not defective; (b) the construction or performance of any work, whether or not
pursuant to approved plans, drawings, and specifications; (c) the development of any property within the
neighborhood; or (d) the execution and filing of an estoppel certificate whether or not the facts therein are
correct; provided, however. that such Board member has acted in good faith on the basis of such information
as may be possessed by him.

14.15. ENFORCEMENT.
In the event of a violation of any of the provisions of this Article, by any Owner including,
without limitation, failure of any Owner to comply with the written directive or order from the Board, the Board
shall have the right and authority to enforce, pursuant to the "Enforcement" Article hereinafter, the
performance of the subject matter of such directive, including, if necessary, the right to enter onto the
Condominium where a violation of these restrictions exists and perform remedial work, and the cost of such
performance shall be charged to the Owner of the Condominium in question. Such costs shall be due within
five (5) days after receipt of written demand therefor, and shall bear interest at the maximum rate allowed by
law. Said costs may be recovered by the Board together with such interest and reasonable attorney's fees
and costs in an action at law against such Owner.
14.16. NON-COMPLIANCE WITH LAWS.

Neither the Association, the Board, its delegated committee nor any member thereof shall be
responsible for any non~compliance with any governmental law, rule or regulation of any building or other
structure erected, constructed, installed, placed, altered or maintained in accordance with or pursuant to any
plans and specifications approved by the Board or any defect in any conditions or requirements they may
have imposed with respect thereto.
14.17. APPROVAL BY GOVERNMENTAL JURISDICTION.

Prior to commencing any alteration or improvements approved by the Board, the Owner
shall comply with all appropriate governmental jurisdiction laws and regulations. Approval by the Board shall
not be considered to satisfy the appropriate approvals that may be required by any governmental entity with
appropriate jurisdiction. The Association shall not be obligated to enforce the provisions of this Section. An
Owner's failure to obtain such governmental approval may subject such Owner to certain penalties imposed
by the governmental entity, notwithstanding the approval of Board, which penalties shall be the responsibility
of such Owner.
~ RESPONSIBILITIES OF MAINTENANCE
15.1. GENERAL
The Association and all Owners are hereby required to maintain the areas described in this
Article. For purposes of this Article "maintenance" shall include, without limitation, the painting,
weatherproofing and cleaning of the items set forth below to keep a clean, safe and sanitary condition
necessary to preserve the attractive appearance of each Condominium and the Project and to protect the
values thereof. The Board shall have the power to determine the standards of such maintenance, which
shall be, at a minimum. in conformance with maintenance standards for similar projects in the area.
15.2. OWNER RESPONSIBILITY.

Except for those portions of the Project that the Association is required to maintain and
repair, each Owner shall, at his sole cost and expense, maintain and repair the following in a safe, attractive
and neat manner consistent with the highest standards of the surrounding properties:
(a) All doors, attached to the Unit. whether interior or exterior, glass or otherwise, and
windows, including the metal frames and tracks of such doors and windows, and hardware attached thereto,
door bells, screen doors and all other screens enclosing openings to the Unit; provided that painting or
replacement of exterior doors and windows shall require the prior approval of the Board;
(b) The interior of such Owner's Living Unit, including the interior surfaces;
(c) All appliances whether "built~in" or "free~standing" within the Living Unit;
(d) Except for the utility facilities to be maintained by the Association, as described in
Section 14.6 herein entitled "RESPONSIBILITY OF ASSOCIATION," each Owner shall also be responsible

DECLARATION -47- • Dec_4474-BO_OregonSt.doc
for the maintenance, repair and replacement of the plumbing, heating, ventilating and air-conditioning
systems, which service such Owner's Condominium (including air-conditioning compressors), including
television and cable equipment, wires and connections, telephone wiring and all appliances, equipment and
fixtures, lighting fixtures (including lightbulbs), provided such systems are used or operated exclusively by
such Owner and not in common;
(e) Chimney flues (including the periodic seasonal inspection(s) thereof for the build-up
of creosote and any necessary cleaning), which are used or operated exclusively by such Owner and not in
common.
15.3. OWNER RESPONSIBILITY OF EXCLUSIVE USE COMMON AREAS.

Each Owner shall be responsible for (a) general maintenance and cleaning of the interior (or
. inside-facing) surfaces of any Exclusive Use Common Areas that may be appurtenant to such Owner's Unit,
including any interior facing wood or stucco railings. fences. walls and, if any; and (b) maintenance, repair
and replacement of the lighting fixtures (and lightbulbs) and other fixtures, including lighting fixtures located
at the front, rear or side entrances to a Living Unit, provided such fixtures and appliances are not used in
common with other Owners, in which case the Association shall be responsible. Except in emergency
situations, the replacement of exterior fixtures, appliances, doors and equipment shall require the prior
approval of the Board, or its delegated committee. In the case of emergency replacement of the items
specified above, such Owner shall take reasonable measures to conform with the overall scheme of the
Project, and subsequently replace such item if directed by the Board or Committee. Each Owner shall also
be responsible to see that his or her assigned appurtenant Garage and/or Parking Space area, if any, is kept
clean and free of excessive grease and oil spills.
15.4. DAMAGE FROM WITHIN A UNIT.

Except to the extent covered by insurance carried by the Association. in the event the Board
shall determine that the walls, ceilings, floors, doors, or windows or any other portion of the Common Area
forming the boundaries of a Unit have been damaged from within a Unit, notwithstanding that such damage
may be to the Common Area, the Owner of the Unit shall be responsible for repairing such damage in a
timely manner in accordance with such rules as the Board or its delegated committed shall from time to time
adopt.
15.5. OWNER'S FAILURE TO MAINTAIN; WILLFUL OR NEGLIGENT ACT.

In the event an Owner fails to maintain the areas described herein pursuant to the standards
set by the Board or its delegated committee, or if an Owner. or his Invitees or pets, cause the willful or
negligent act or neglect of the same or any other area within the Project, the Board may notify the Owner of
the work required and request that the same be done within a reasonable time under the specific
circumstances, provided, however, that the Board shall have the right to approve the person or company
who shall perform the maintenance or repairs and the method of repair. In the event the Owner fails to carry
out such maintenance or repair within said time period, the Board may, following notice and a hearing as
provided in the Section 10.4 entitled entitled "NOTICE AND HEARING,"cause such work to be done and the
cost thereof shall immediately be paid by such Owner to the Association and until paid shall bear interest at
the rate of twelve percent ( 12%) per annum (but no greater than the maximum rate authorized by law).
15.6. RESPONSIBILITY OF ASSOCIATION.

The Association shall provide for adequate and reasonable replacement, maintenance and
repair of the foilowing:
(a) The maintenance, repair and replacement of all facilities. including utility facilities as
described below and in Section 14.8 herein entitled "ASSOCIA T!ON DUTIES REGARDING CERTAIN
UTILITIES," the Common Area including, but not limited to, recreation areas (if any), private driveway,
walkways, lighting, doors of utility closets, mailboxes (excluding mailbox locks, if any, and replacement of
any keys thereto, which shall be the responsibility of the individual Owners), trash enclosures, landscaped
and open space areas, irrigation equipment in Non-Exclusive Use Common Areas, the exteriors, bearing

walls, foundations, roofs, metal flashings between roofing and chimneys and roofing vents, gutters and
downspouts of all Condominium Buildings and other structures on the Property and all property that may be
acquired or leased by the Association. The utility facilities that the Association shall maintain shall include all
gas. water and water pipes, all sewer, all ducts, flues, chutes, conduits, wires and other utility installations
within the Project wherever located (except the Outlets thereof when located within a Condominium Unit).
By way of example, and not limitation, an ''Outlet" shall mean any portion of a utility facility which is located in
an electrical or wiring box or panel and any pipe or other utility facility from the point at which it is reasonably
accessible from within an Owner's Condominium Unit. More specifically, the term "Outlet" shall mean the
point at which any utility facility can be serviced without the need for destructive entry into the walls, floors,
. ceilings or any portion of the Common Area.
(b) The periodic inspection, but not less than annually, of: (i) all electrical, gas, water
and cable utility controls and meters; (ii) all roofs and metal flashings for evidence of cracking, damage or
exposure of underlying structures to the elements;
(c) The maintenance, repair and replacement of any fixtures (lighting or otherwise)
located within the Common Area, including those located in Exclusive Use Common Areas, which are not
used exclusively by one Owner;
(d) The maintenance, repair and replacement of all Common Area fences, walls and
railings and any of the same which are within or delineate Exclusive Use Common Areas, but to the extent
such maintenance, repair and replace is due to normal wear and tear;
(e) The maintenance and repair of all Parking Spaces, if any, except for excessive
grease and oil spills that is the responsibility of the respective Owner as described in above Section 14.3
entitled "OWNER RESPONSIBILITY OF EXCLUSIVE USE COMMON AREAS";
(f) The periodic inspection, but not less than annually, of all Exclusive Use Common
Areas for surface wear and tear and drainage conditions, as applicable, for purposes of ascertaining the
necessity for remedial or long-term maintenance and repair to assure the integrity of such surface, and for
the repair thereof when required;
(g) The maintenance and repair of the Common Area as required to control the
presence of or damage caused by wood-destroying pests or organisms; provided, however, the costs of
temporary relocation during such maintenance or repair shall be paid by the Unit owner affected. The
Association is hereby given the power to temporarily remove any Unit owner or occupant for such periods
and at such times as may be necessary for prompt, effective treatment of such pests or organisms. The
Association shall give notice of the need to temporarily vacate a Unit to the record owners and occupants not
less than fifteen (15) days nor more than thirty (30) days prior to the date of the temporary relocation. The
notice shall state the reason for the relocation, the date and time of the beginning of treatment, the
anticipated date and time of termination of treatment and that the occupants will be responsible for all
necessary accommodations during the relocation. Any such notice shall be given in accordance with Section
23.5 herein entitled "NOTICE," provided that an additional notice shall also be given to any occupant of the
Condominium if such occupant is not the Owner;
(h) All utility, sewer or drainage systems not maintained by a public entity, utility
company, or improvement district, where such systems are used to provide services to Common Area
facilities;
(i) Such other areas, facilities, equipment, services or esthetic components of
whatsoever nature as may from time to time be requested by the vote or written consent of at least two-thirds
(2/3) (i) of the Members of the Association, and (ii) of the Members of the Association other than the
Declarant.
U) All of the foregoing Association responsibilities are intended to be applicable only in
circumstances due to normal wear and tear, the need for replacement or the willful or negligent act or neglect
of the Board or its agents, and not when due to any negligent act of an Owner or his lnvitee(s).

DECLARATION -49- • Dec_44 74-BO_OregonSt.doc
15.7. UTILITY FACILITIES: OWNER'S RIGHTS AND DUTIES.
(a) The rights and duties of an Owner of a Condominium within the Project with respect
to sanitary sewer, water, drainage, electric, gas, television receiving and telephone equipment, cables and
lines, exhaust flues, and heating and air conditioning facilities, including air conditioning compressors and
condensers (hereinafter referred to, collectively, as "utility facilities") that are located in or on Condominiums
owned by other than the Owner of a Condominium served by said utility facilities, shall be as follows:
(b) Such Owner shall have the right of reasonable access for themselves or for utility
companies to repair, replace, and generally maintain said utility facilities as and when necessary.
Notification of such entry shall be given at least twenty-four (24) hours in advance. Such entry shall be made
with as little inconvenience to the affected Owner as possible and any damage caused thereby shall be
repaired by the entering Owner at his own expense. In the case of any emergency, the right of entry shall be
immediate. For the purpose herein, "emergency" is defined as an unforeseen occurrence or condition calling
for immediate action to avert imminent danger to life, health, or property.
(c) An Owner shall be entitled to reasonable access to the Common Areas for the
purpose of maintaining the utility facilities appurtenant to such Owner's Unit and/or which serve such Unit in
accordance with the provisions of this Declaration. The access shall be subject to the consent of the Board,
whose approval shall not be unreasonably withheld, and which may include reasonable conditions of
approval for any portion of such utility facilities that are located on the exterior of the Common Areas, and
other conditions as the Board determines reasonable.
(d) Whenever utility facilities are installed within the Project, which utility facilities serve
more than one (1) Condominium, the Owner of each Condominium served by said utility facilities shall be
entitled to the full use and enjoyment of such portions of said utility facilities as service his Condominium.
(e) In the event of a dispute between Owners with respect to the repair or rebuilding of
said utility facilities, or with respect to the sharing of the cost thereof, then, upon written request of one (1) of
such Owners addressed to the Association, the matter shall be submitted to arbitration pursuant to the rules
of the American Arbitration Association, and the decision of the arbitrator(s) shall be final and conclusive on
the parties.
15.8. ASSOCIATION'S DUTIES REGARDING CERTAIN UTILITY FACILITIES.

The Association shall maintain all utility facilities located in the Common Area except for
those facilities maintained by utility companies, public, private, or municipal, and those maintained by the
Owners as described elsewhere in this Article. The Association shall pay all charges for utilities supplied to
the Common Area except those metered or charged separately to the individual Condominiums.
15.9. MOLD
The Association, with respect to Common Area, and each Owner and Occupant, with
respect to its Condominium, shall take all reasonable and appropriate steps to prevent conditions that may
cause mold or mildew to develop, including any recommendations contained in any Maintenance Manual or
in any applicable publications of the California Department of Health Services ("DHS") or the United States
Environmental Protection Agency ("EPA''). As of the date of Recordation of these CC&RS, the EPA and
DHS have Internet Web sites which contain information and publications regarding mold and other biological
pollutants. For example, see "Biological Pollutants in Your Home" and "Mold Resources" on the EPA Web
site (http://www.epa.gov); and "Indoor Air Quality Info Sheet: Mold in My Home: What Do I Do" on the DHS
Web site (http://www.dhs.ca.gov). An Owner or Occupant shall promptly report to the Association any
evidence the Owner or Occupant may discover of moisture accumulation or mold in the Project. Should an
Owner or Occupant fail promptly to report to the Association any evidence of moisture accumulation or mold
in that Owner's Condominium that may affect the Common Area or should an Owner or Occupant fail
promptly to report to another Owner or Occupant any evidence of such moisture accumulation or mold that
may affect such other Owner's or Occupant's Unit, such Owner shall be obligated to reimburse the
Association and the other Owner(s) for all costs incurred by the Association or other Owner(s) as a result of
the unreasonable delay in reporting the condition to the Association or other Owner.
4474~4480
OREGON STREET
15.10. ASSUMPTION OF MAINTENANCE OBLIGATIONS.
Declarant and its subcontractors, and the agents and employees of the same, shall have the
right to come upon the Common Area to complete the construction, refurbishment or installation of any
landscaping or other improvements to be installed thereupon. In the event that any of Declarant's
subcontractors are contractually obligated to maintain the landscaping and/or other improvements on any
portion of the Common Area, such maintenance shall not be assumed by the Association until the
termination of such contractual obligation. If there is any excess of assessments collected over actual
Common Expenses incurred by the Association, caused by reason of this Section, or otherwise, such excess
shall be placed in reserve to offset the future expenses of the Association in any manner designated by the
Board.
15.11. PROPERTY MANAGEMENT.

The Board of Directors of the Association may employ a professional management company
("Managing Agent") to handle the day to day management and operation of the Project.
15.12. PROSPECTIVE MANAGING AGENTS.

Pursuant to California Civil Code Section 1363.1, or any succeeding statute, prior to entering
into a management agreement, but in no event more than 90 days, the Board shall obtain from a prospective
Managing Agent a written statement to the Board which shall contain all of the following information
concerning the managing agent:
(a) The names and business addresses of the owners or general partners of the
Managing Agent. If the Managing Agent is a corporation, the written statement shall include the names and
business addresses of the directors and officers and of shareholders holding greater than ten percent (10%)
of the shares of the corporation.
(b) Whether or not any relevant licenses, such as architectural design, construction,
engineering, real estate or accounting have been issued by the State of California and are currently held by
the persons specified in the above paragraph. If a license is currently held by any of those persons, the
statement shall contain the following information: (i) what license is held, (ii) the status of that license, (iii)
the name of the licensee appearing on that license, and (iv) whether or not there have been any violations or
fines relating to such license within the previous five (5) years and whether or not any are existing or
pending.
(c) Whether or not any relevant professional certifications or designations such as
architectural design, construction, engineering, real property management or accounting are currently held
by any of the persons specified above, including, but not limited to, certified property manager or
professional association manager. If any certification or designation is held, the statement shall include the
following information: (i) what the certification or designation is and what entity issued it, (ii) the status of that
certification or designation, (iii) the names which the certification or designation is held and, (iv) whether or
not there have been any violations or fines relating to such certification or designation within the previous five
(5) years and whether or not any are existing or pending.
(d) Whether or not there have been any judgments, satisfied or not, against such
Managing Agent within the previous five (5) years and whether or not there are any existing legal actions.
(e) As used in this section, a "Managing Agent" is a person or entity, who for
compensation or, in expectation of compensation, exercises or may exercise control over the assets of the
Association or the PiOperty. A "Managing Agent" shall not include any regulated financial institution
operating within the normal course of its regulated business practice.
15.13. LANDSCAPEMANAGEMEN~
The Board of Directors of the Association shall employ a professional landscape contractor
("Landscape Contractor"), appropriately licensed by the State of California, to provide for the landscape
management and maintenance of the Project, as hereinafter described, and to serve as a consultant to the

DECLARATION -51 - • Dec_4474-80_0regor>St.doc
Board and the Property Manager in the administration of the landscape maintenance duties of the
Association.
15.14. USE OF LICENSED CONTRACTORS; WORKFORCE; PERMITS.

All work of repair or replacement required to be performed pursuant to this Article shall be
performed only by reputable and experienced contractors, appropriately licensed by the State of California or
other controlling governmental jurisdiction. A contractor's workforce shall be presentable at all times and all
employees shall be competent and qualified. If building or other permits are required for such work, then
such permits shall be obtained before the work is commenced.
16. INSURANCE
16.1. MASTER INSURANCE POLICY.
The Association shall obtain and continue in effect the following insurance:
16.1.1. FIRE HAZARD INSURANCE.

A master policy of fire insurance with extended coverage endorsement for
the full replacement value (i.e. one hundred percent (1 00%)) of current "replacement cost," exclusive of land,
foundation, excavation and other items normally excluded from coverage of all of the improvements within
the Common Area, without deduction for depreciation, with an "agreed amount endorsement" or its
equivalent, and, if necessary, an "increased cost of construction endorsement" or "contingent liability from
operation of building laws endorsement", if available; such insurance shall afford protection against loss or
damage by fire and other hazards covered by the standard extended coverage endorsement. and by
sprinkler leakage, debris removal, costs of demolition, vandalism, malicious mischief, windstorm, water
damage and such other risks as shall customarily be covered with respect to similar Common Interest
Developments in the area of the Project The form and content of such policy must be satisfactory to all
institutional first trust deed lenders and shall meet the maximum standards of the various institutional first
trust deed lenders whose loans encumber any of the Condominium Units.
16.1.2. PUBLIC LIABILITY INSURANCE.

A general, comprehensive public liability and property damage insurance
policy with cross liability endorsement, if available, in an amount not less than Two million dollars
($2,000,000), insuring the Association, its agents, the Declarant and the Owners and occupants of the
Condominium Units and their respective family members. guests, invitees and agents against any liability
incident to ownership or use of the Common Area or any other Association owned or maintained real or
personal property, arising out of any single occurrence. Such coverage shall include liability for non-owned
and hired automobiles and liability for property of others, and such other risks as are customarily covered
with respect to similar real estate developments in the area of the Project The general liability policy shall
also include such provisions as may be required by the provisions of California Civil Code Section 1365.7, or
any successor statute, to limit the monetary liability of volunteer directors and officers of the Association.
The policy shall, in any event, contain a "severability of interest" endorsement or the equivalent which shall
preclude the insurer from denying the claim of an Owner because of wanton or grossly negligent acts or
omissions of the Association or other Owners.
16.1.3. DISHONEST ACTS; FIDELITY BOND.

Such insurance covering directors, officers and employees of the
Association and employees of any manager or managing agent, or administrator, whether or not any such
persons are compensated for their services, against dishonest acts on their part, or in lieu thereof, a fidelity
bond, naming the Association as obligee, written in an amount equal to at least the estimated maximum of
funds, including reserves in the custody of the Homeowners' Association or the management agent at any

given time during the term of the fidelity bond. However. the bond shall not be less than a sum equal to three
(3) months aggregate Regular Assessments on all Condominium Units, including reserve funds.
16.1.4. WORKERS COMPENSATION INSURANCE.

Worker's compensation insurance covering any employees of the
Association to the extent required by law.
16.1.5. OTHER INSURANCE.

Such other insurance as the Board in its discretion considers necessary or
advisable.
16.1.6. COVERAGE, AMOUNT AND TERM OF INSURANCE.

(a) The amount, term and coverage of any policy required hereunder
(including the type of endorsements, the amount of the deductible, the named insureds, the loss payees,
standard mortgage clauses. and notices of changes or cancellations) shall satisfy the minimum requirements
imposed for this type of project by the FNMA and the FHLMC or any successor thereto. If the FNMA or
FHLMC requirements conflict, the more stringent requirement shall be met. If FNMA and FHLMC do not
impose requirements on any policy required hereunder, the term, amount and coverage of such policy shall
be no less than that which is reasonable for the nature of the Project and its insurable assets.
(b) Any insurance maintained by the Association shall contain a "waiver
of subrogation" as to the Association and its officers, directors and Members, the Owners and occupants of
the Condominiums and mortgagees, and, if obtainable, a cross-liability or severability of interest
endorsement insuring each insured against liability to each other insured. The Association shall periodically
(and not less than once every three (3) years) review all insurance policies maintained by the Association to
determine the adequacy of the coverage and to adjust the policies accordingly.
(c) All insurance policies shall provide that they shall not be cancelable
by the insurer without first giving at least ten (1 0) days' prior notice in writing to the Association. Each Owner
appoints the Association or any insurance trustee designated by the Association to act on behalf of the
Owners in connection with all insurance matters arising from any insurance policy maintained by the
Association, including without limitation, representing the Owners in any proceeding, negotiation, settlement
or agreement.
16.1.7. OWNER'S INSURANCE.

No Owner shall separately insure the Improvements on his Condominium
against loss by fire or other casualty covered by any insurance carried by the Association. If any Owner
violates this provision, any diminution in insurance proceeds otherwise payable under the Association's
policies that results from the existence of such other insurance will be chargeable to the Owner who acquired
other insurance. Any Owner can, however, insure his personal property against loss and obtain any
personal liability insurance that he desires; in addition, any improvements made by an Owner within his
Living Unit may be separately insured by the Owner. The insurance for the foregoing shall be limited to the
type and nature of coverage generally known in the insurance industry as an "HO 00 06," or the equivalent.
All individually owned insurance shall contain a waiver of subrogation as to the Association and its officers.
directors and Members, of the Owners and occupants of the Condominiums (including Declarant), and of
Mortgagees. It is not intended with respect to the individual Living Units that the Association carry (a) liability
insurance covering any acts or occurrences, nor (b) any casualty insurance covering Owners' personalty or
betterments.
WARNING TO ALL OWNERS: The Association is required by this Article
to maintain a general, comprehensive public liability insurance policy in an amount not less than $2,000,000,
insuring the Association, its agents, the Declarant and the Owners of the Condominium Units and their
Invitees and agents against any liability incident to ownership or use of the Common Area or any other
Association owned or maintained real or personal property, arising out of any single occurrence. In the event

DECLARATION -53- • Dec_44 7 4-80_ OregonSt.doc
that a third party sustains injuries, the nature of which results in liability or damages in excess of the
Association's insurance policy limits, the Owners of Condominium Units in the Project may be held jointly and
severally liable for the excess amount. Each Owner should consult with his or her insurance representative
and or legal counsel to consider the merits of obtaining alternative liability insurance coverage.
16.1.8. FAILURE TO ACQUIRE.

The Association, and its directors and officers, shall have no liability to any
Owner or mortgagee if, after a good faith effort, it is unable to obtain the liability insurance required
hereunder, because the insurance is no longer available or, if available, can be obtained only at a cost that
the Board in its sole discretion determines is unreasonable under the circumstances, or the Members fail to
approve any assessment increase needed to fund the insurance premiums. In such event, the Board
immediately shall notify each Member and any mortgagee entitled to notice that the liability insurance will not
be obtained or renewed.
16.1.9. INSPECTION OF POLICIES.

Copies of all Association insurance polices (or certificates thereof showing
the premiums thereon to have been paid) shall be retained by the Association and be open for inspection by
Owners at any reasonable times.
16.2. INSURANCE INFORMATION TO MEMBERS.

The Board shall annually prepare and distribute or caused to be prepared and distributed a
summary of the following:
16.2.1. GENERAL LIABILITY POLICY.

The Association's general liability policy covering the Common Area that
states all of the following:
(a) The name of insurer;
(b) The policy limits of the insurance;
(c) If an insurance agent, as defined in Section 1621 of the Insurance
Code, or any successor statute, or an agent of an insurance agent or insurance broker has assisted the
Association in the development of the general liability policy limits and if the recommendations of the
insurance agent or insurance broker were followed;
(d) The insurance deductibles;
(e) The person or entity that is responsible for paying the insurance
deductible in the event of a loss;
(f) Whether or not the insurance coverage extends to the
Improvements located within a Unit;
(g) A summary of the Association's earthquake and flood insurance
policy, if one has been issued, that states all of the following: (1) name of the insured, (2) the policy limits of
the insurance, (3) the insurance deductibles and (4) the person or entity that is responsible for paying the
insurance deductible in the event of a loss.
16.2.2. DIRECTOR AND OFFICER LIABILITY COVERAGE.

The Association's liability coverage policy for the directors and officers of the
Association that lists all of the following:
(a) The name of the insurer;
(b) The limits of the insurance.

(c) The foregoing notwithstanding, the Board shall, as soon as
reasonably practical, notify the Members by first-class mail if any of the insurance policies have been
canceled and not immediately replaced. If the Board renews any of the policies a new policy is issued to
replace an insurance policy of the Association, and where there is no laps in coverage, the Board shall notify
the Members of that fact in the next available mailing to all Members pursuant to Section 5016 of the
Corporation Code, or any successor statute thereto.
(d) To the extent that the information to be disclosed pursuant to this
Section is specified in the insurance policy declaration page, the Board may meet the requirements of this
Section by making copies of that page and distributing it to all Members.
1L DAMAGE AND DESTRUCTION.
17.1. RESTORATION DEFINED.

As defined in this Article, the term "restore" shall mean repa1nng, rebuilding or
reconstructing damaged Common Area and/or other portions of the improvements located within the
Condominium Property for which the Association is responsible pursuant to this Declaration (collectively,
"Covered Property," to substantially the same condition and appearance in which it existed prior to fire or
other casualty damage.
17.2. INSURED CASUALTY.

If the Covered Property is damaged or destroyed from a risk covered by the insurance
required to be maintained by the Association, then the Association shall, to the extent permitted under
existing laws. restore the Covered Property to the same condition as it was in immediately prior to the
destruction. If such damage or destruction occurs prior to the date of completion of construction the Project
by Declarant, then, such construction shall be completed in coordination with any construction required or
deemed necessary to be completed by Declarant. If fire or other casualty damage extends to any Covered
Property which is so insured, the Association shall proceed with the filing and adjustment of all claims arising
under the existing insurance policies. The insurance proceeds shall be paid to and held by the Association.
17.3. SUFFICIENT PROCEEDS.

The costs of restoration of damaged Covered Property shall be funded first by any insurance
proceeds paid to the Association under existing insurance policies. If the insurance proceeds exceed the
costs of restoration, the excess proceeds shall be paid to the reserve accounts of the Association and held
for the benefit of the Association. If the insurance proceeds are insufficient to restore the damaged Covered
Property, the Board shall then add to the insurance proceeds all reserve account funds designated for the
repair or replacement of the lmprovement(s) which have been damaged. If the total funds then available are
sufficient to restore the damaged Covered Property, the damaged Covered Property shall be restored. If the
aggregate amount of insurance proceeds and such reserve account funds are still insufficient to pay the total
costs of restoration, a Special Assessment against all Owners shall be levied by the Board up to the
maximum amount permitted without the approval of the Members in accordance with the limitation set forth
in this Declaration. If the total funds then available are sufficient to restore the damaged Covered Property,
the damaged Covered Property shall be restored.
17.4. INSUFFICIENT PROCEEDS.

If, after apply the proceeds pursuant to Section 17.3 above, the total funds available to the
Association are still insufficient to restore the damaged Covered Property, then the Board shall attempt to
first impose an additional Special Assessment pursuant to Section 17 .4.1 below; secondly, use a plan of
alternative reconstruction pursuant to Section 17.4.2 below; and lastly, purchase those Living Units of
Owners affected by damage or destruction. pursuant to Section 17.4.3 below. If the Members do not
approve actions under Sections 17.4.1, 17.4.2 or 17.4.3, then the entire Project shall be sold by the Board
pursuant to Section 17.4.4 below.

17.4.1. ADDITIONAL SPECIAL ASSESSMENT.
If the total funds available to restore the damaged Covered Property as
provided in the Section 17.4 above, are insufficient, then a meeting of the Members shall be called for the
purpose of voting whether to impose an additional Special Assessment and deciding upon the amount
thereof ("Additional Special Assessmenf'). If the amount of the Additional Special Assessment approved by
each class of Members, together with the amounts available pursuant to Section 17.4 above, is sufficient to
restore the damaged Covered Property, the damaged Covered Property shall be restored. If the amount of
the Special Assessment approved by each class of Members, together with the amounts available pursuant
·to Section 17.4 above is insufficient to restore the damaged Covered Property, or if no Additional Special
Assessment is approved, the Association shall consider a plan of alternative reconstruction in accordance
with Section 17.4.2 below.
17.4.2. ALTERNATIVE RECONSTRUCTION.

The Board shall consider and propose plans to reconstruct the damaged
Covered Property, making use of whatever funds are available to it pursuant to Section 17.4 above and
whatever funds, if any, are available to it pursuant to Section 17.4 and whatever funds, if any, are available
to it pursuant to Section 17 .4.1 above. All proposals shall be presented to the Owners. If two-thirds (2/3rds)
of the Owners whose Units were directly affected by the damage to the Covered Property, as determined by
the Association ("Affected Owners") and a majority of the Members (including the Affected Owners) agree to
any plan of Alternative Reconstruction, then the Board shall contract for the reconstruction of the damaged
Covered Property in accordance with the plan of Alternative Reconstruction is agreed to, then the
Association shall consider purchasing the Units of the Affected Owners pursuant to Section 17.4.3 below.
17.4.3. PURCHASE OF UNITS OF AFFECTED OWNERS.

If no plan of Alternative Reconstruction is agreed to within six (6) months of
the date of the damage, then the Board shall seek to obtain the approval of the Owners, the Affected
Owners, and their First Mortgagees of the Association's purchase of the Condominiums of the Affected
Owners. The purchase price ("Purchase Price") each Condominium shall be the fair market value of the
Condominium immediately prior to the damage as determined by an independent appraisal made by a
qualified real estate appraiser with a Member of the Appraisal Institute certificate or the equivalent as
selected by the Board. If two thirds {2/3rds) of the Members (including the Affected Owners) agree to the
purchase, the Association shall purchase the Condominiums of those Affected Owners who together with all
of their Mortgagees agreed to the purchase, then a Special Assessment shall be levied against all Owners.
The aggregate amount of the Special Assessment shall be the amount needed to pay the difference between
the aggregated amount of available funds (pursuant to Sections 17.4, 17.4.1 and 17.4.2) and the aggregate
fair market value of the Condominiums of the Affected Owners who agreed to the purchase.
17.4.4. SALE OF ENTIRE PROJECT.

If the aggregate amount of funds available for restoration of the Covered
Property is insufficient to restore the damaged Covered Property, Alternative Reconstruction (as defined in
Section 17 .4.2 above) cannot be agreed to, and the Owners did not approve a purchase pursuant to Section
17.4.3 above, then the Board shall be empowered to sell the entire Project, including all Living Units and the
Common Area in their then present condition. on terms to be determined by the Board. If the entire
Condominium Property is sold, the proceeds from the sale, together with the insurance proceeds received
and any balance of funds held by the Association, shall be distributed among those Owners who then own
Separate Interests and their respective Mortgagees. in proportion to the respective fair market values of the
Separate Interests immediately prior to the destruction, as determined by an independent appraisal made by
a qualified real estate appraiser with a Member of the Appraisal Institute certificate of the equivalent as
selected by the Board.
For the purpose of effecting sale under this Section 17.4.4, each Owner
grants to the Association an irrevocable power of attorney to sell his Living Unit and the entire Project for the
benefit of the Owners, to terminate the Declaration and to dissolve the Association.

DECLARATION -56- ' Dec_44 74-80_ OregonSt.doc
In the event the Association fails to take the necessary steps to sell the
entire Condominium Property as provided in this Section 17 .4.4 within sixty (60) days from the date that the
Owners failed to approve the purchase described in Section 17.4.3 above, any Owner may file an action in a
court of appropriate jurisdiction for an order requiring the sale of the Condominium Property and distribution
of the proceeds in accordance with this Section 17 .4.4.
Notwithstanding anything herein to the contrary, any Owner or group of
Owners shall have a right of first refusal to match the terms and conditions of any offer made to the
Association in the event of a sale of the Condominium Property under this Section 17.4.4, provided this right
is exercised within ten (10) days of receipt by the Owners of a notice from the Association containing the
terms and conditions of any offer it has received. If the Owner or group of Owners subsequently default on
their offer to purchase, they shall be liable to the other Owners and their respective mortgagees for any
damages resulting from the default. If more than one (1) Owner or group elects to exercise this right, the
Board shall accept the offer that in its determination is in the best interests of the Members.
17.5. REBUILDING CONTRACT.

If there is a determination to restore, the Board of its authorized representative shall obtain
bids from at least two licensed and reputable contractors and shall accept the repair and reconstruction work
from whomever the Board determines to be in the best interests of the Members. The Board shall have the
authority to enter into a written contract with the contractor for such repair and reconstruction, and the
insurance proceeds held by the Trustee shall be disbursed to the contractor according to the terms of the
contract, It shall be the obligation of the Board to take all steps necessary to assure the commencement and
completion of authorized repair and reconstruction at the earliest possible date. Such construction shall be
commenced no later than one-hundred-eighty (180) days after the event requiring reconstruction, and shall
thereafter be diligently prosecuted to completion. Such construction shall return the Project to substantially
the same condition it was in prior to such damage or destruction and shall be carried out pursuant to all
applicable laws and ordinances.
17.6. RIGHT TO PARTITION.

No Owner shall have the right to partition of his interest in a Separate Interest and there shall
be no judicial partition of the Project or any part thereof. except as provided in the Article entitled
SEPARATION OF INTERESTS; PARTITION; POWER OF ATTORNEY hereafter.
17.7. MINOR REPAIR AND RECONSTRUCTION.

The Board shall have the duty to repair and reconstruct Improvements, without the consent
of the Members and irrespective of the amount of available insurance proceeds, in all cases of partial
destruction when the estimated cost of repair and reconstruction does not exceed One-Hundred·Thousand
Dollars ($100,000.00), which amount shall be increased three percent (3%) per annum on a compounded
basis commencing on the anniversary date of the recordation of this Declaration and each anniversary date
thereafter. The Board is expressly empowered to levy a Special Assessment for the cost of repairing and
reconstructing such improvements to the extent insurance proceeds are unavailable (but without the consent
or approval of Members, despite any contrary provisions in this Declaration or the other Project Documents).
17.8. BOARD'S ACTION.

The Board shall have the exclusive right to participate in and represent the interests of all
Owners in any proceedings affecting the Project relating to the rebuilding or any portion of the Project,
including, without limitation, proceedings with any governmental or quasi-governmental agency to obtain
permits or approvals for any rebuilding, and no Owner shall have the right to directly participate therein,
except that, prior to the conversion of the Class B membership in the Association to Class A membership,
Declarant shall have the right to directly participate therein.

DECLARATION -57- ' Dec_44 74-80_ OregonSt.doc
~ CONDEMNATION
If at any time all or any portion of the Project, or any interest therein, shall be taken through
any public or quasi~public taking by exercise of eminent domain or by private purchase in lieu of
eminent domain ("Condemnation'), the award in Condemnation allocable to the Project shall be
paid to the Association. The Board shall have the exclusive right to participate in and represent the
interests of all Owners in the Condemnation proceedings affecting the Project and no Owner shall
have the right to directly participate therein, except that, prior to the conversion of the Class B
membership in the Association to Class A membership, Declarant shall have the right to directly
participate therein. The Board shall promptly notify all Owners (and all insurers, and guarantors
who have requested written notice), as soon as the Board becomes aware of any taking or
threatened taking of any portion of the Project by Condemnation.
18.1. ASSOCIATION AS ATTORNEY IN FACT.

The Association, acting through the Board, is hereby appointed and shall be attorney~in-fact
to represent the interests of all the Owners in any actual or threatened condemnation action affecting any
portion of the Common Area and with respect to any Condemnation proceeds payable relative to the Project,
and any such Condemnation proceeds shall be so payable to the Board, as trustee, or any to any trustee
appointed by the Board. The Board shall have full power to receive and to receipt for the proceeds and to
deal therewith as provided hereafter.
18.2. CONDEMNATION OF A SEPARATE INTEREST.

In the event of any taking of a Unit, the Owner (and his Mortgagee(s) as their interests may
appear) of the Separate Interest shall be entitled to receive the award for such taking and after acceptance
thereof such Owner and the Owner's Mortgagee(s) shall be divested of all further interest in the
Condominium Property or any portion thereof and membership in the Association. In such event, said
Owner shall grant his remaining interest in the Common Areas that may be appurtenant to his Unit to the
other Owners owning a fractional interest in the same Common Areas, such grant to be in proportion to the
fractional interest in the Common Areas then owned by each.
18.3. INTERIOR DAMAGE OF A UNIT.

With the exception of any casualty or damage insured against by the Association pursuant to
Section 16.1.1 of this Declaration, restoration and repair of any damage to the interior of any individual Unit,
including without limitation all fixtures, cabinets and improvements therein, together with restoration and
repair of all interior paint, wall coverings and floor covers, shall be made by and at the individual expense of
the Owner of the Unit so damaged. In the event of a determination to rebuild the Project after partial or total
destruction, as provided in this Article, such interior repair and restoration shall be completed as promptly as
practical and in a lawful and workmanlike manner, in accordance with plans approved by the Board or its
delegated committee as provided herein.
·18.4. CONDEMNATION AND INSURANCE PROCEEDS.

(a) Condemnation proceeds shall be used by the Association to (i) pay for the
Association's reasonable costs related to the Condemnation action, (ii) return the Project to as near its
previous form, condition and use as it was in prior to the time of the taking. Any proceeds remaining after
such repair or rebuiiding shall be retained or distributed in accordance with any of the following:
(b) The Association shall retain the remaining proceeds as a capital contribution, unless
objected to by a majority of all of the Owners, and in the event that:
(1) The costs of distribution of the remaining proceeds would exceed

one-half of their amount, or

DECLARATION ~58- • Dec_4474-BO_OregonSt.doc
(2) After deducting costs of distribution, the pro~rata amount of the
distribution would be less than $1,000 per Unit;
(3) Pursuant to a court order;
(4) Pursuant to an agreement between the condemning authority and

the Association, which has been approved by the majority of the
Owners.
(c) Among the affected Owners and their respective First Mortgagees according to the
relative values of the Units affected by the condemnation as determined by independent appraisal by a
qualified independent appraiser selected by the Board. In the event of a failure by the Board to agree on the
selection of an appraiser, an appraiser shall be appointed by the, then, President of the San Diego County
Bar Association.
18.5. DISPUTE RESOLUTION IN RE: INSURANCE, DAMAGE, DESTRUCTION,

CONDEMNATION.
In the event of any dispute under this Article, with the exception of any such dispute that may
be at issue specifically against the Declarant relating to matters of the construction of Improvements in the
Project, such dispute shall be determined by in accordance with the alternative dispute resolution procedures
described Article 21 herein entitled "ENFORCEMENT; DISPUTE RESOLUTION."
19. RIGHTS OF LENDERS

19.1. GENERAL.
No breach of any of the covenants, conditions and restrictions herein contained, nor the
enforcement of any lien provisions herein, shall render invalid the lien of any First Mortgage on any
Condominium made in good faith and for value, but all of said covenants, conditions and restrictions shall be
binding upon and effective against any Owner whose title is derived through foreclosure or trustee's sale, or
otherwise. Any provision within the Project Documents to the contrary notwithstanding, First Mortgagees
shall have the rights expressly provided in this Article.
19.2. NO RIGHT OF FIRST REFUSAL.

This Declaration neither contains nor shall be amended to contain any provision creating a
"right of first refusal" to the Association before a Condominium can be sold. Should any such rights
nevertheless be created in the future, such rights shall not impair the rights of any first mortgagee to: (a)
foreclose or take title to a Condominium pursuant to the remedies provided in the mortgage, (b) accept a
deed (or assignment) in lieu of foreclosure in the event of a default by a mortgagor, or (c) sell or lease a
Condominium acquired by the Mortgagee.
19.3. UNPAID DUES OR CHARGES.

Where the Mortgagee of a First Mortgage of record or other purchaser of a Condominium
obtains title to the same pursuant to the remedies in the Mortgage or as a result of foreclosure, such acquirer
of title, his successors and assigns, shall not be liable for the share of the common expenses or
assessments made by the Association chargeable to such Condominium which became due prior to the
acquisition of title to such Condominium by such acquirer. Such unpaid share of common expenses or
assessments shall be deemed to be common expenses collectible from all of the Condominiums including
such acquirer, his successors and assigns. Should such acquirer fail to pay its share of common expenses,
assessments or other charges when due, the Board may file for a Notice of Delinquent Assessment in
accordance with the provisions therefor contained in the Section entitled "Effect of Non~Payment of
Assessments" herein.

DECLARATION ~59- 'Dec_4474-BO_OregonSt.doc
19.4. ACTION REQUIRING MORTGAGEE APPROVAL
Provided that the mortgagee informs the Association in writing of its appropriate address and
requests in writing to be notified, except as provided by statute in case of condemnation or substantial loss to
the Common Area of the Project, unless at least sixty-seven percent (67%) of the First Mortgagees (based
upon one (1) vote for each mortgage owned), or sixty-seven percent (67%) of the Owners (other than
Declarant) of the individual Condominiums in the Project have given their prior written approval, the
Association and/or the Owners shall not be entitled to:
(a) By act or omission seek to abandon, partition, subdivide, encumber, sell or transfer
the Common Area. or any property owned, directly or indirectly, by the Association (the granting of
easements for public utilities or other public purposes consistent with the intended use of the Common Area
by the Association is not a transfer in the meaning of this clause);
(b) Change the method of determining the obligations, assessments, dues or other
charges which may be levied against an Owner; or
(c) By act or omission, change, waive or abandon any scheme of regulations. or
enforcement thereof, pertaining to the architectural design or the exterior appearance or exterior
maintenance of Condominiums, the maintenance of the Common Area walks or fences and driveways, or the
upkeep of landscaping in the Common Area; or
(d) Fail to maintain fire and extended coverage on insurable Association Common Area
improvements on a current replacement cost basis in an amount not less than one hundred percent (100%)
of the insurable value {based on current replacement costs); or
(e) Use hazard insurance proceeds for losses to Association common property for other
than the repair, replacement or reconstruction of such Common Area property.
19.5. PAYMENT OF TAXES AND INSURANCE.

First Mortgagees may, jointly, singlely or severally: {i) pay taxes or other charges which are
in default and which may or have become a charge against the Common Area, unless the taxes or charges
are separately assessed against the Owners, in which case, the rights of First Mortgagees shall be governed
by the provisions of their Mortgages; (ii} pay overdue premiums on hazard insurance policies, or secure new
hazard insurance coverage on the lapse of a policy for the Common Area. First Mortgagees making such
payments shall be owed immediate reimbursement from the Association. This provision shall constitute an
agreement by the Association for the express benefit of all First Mortgagees, and upon the request of any
First Mortgagee, the Association shall execute and deliver to such Mortgagee a separate written agreement
embodying this provision.
19.6. PRIORITY OF PROCEED OR AWARD DISTRIBUTION.

Any other provision herein contained to the contrary notwithstanding, no provision of this
Declaration or any other Project Document shall give a Condominium Owner, or any other party, priority over
any rights of the First Mortgagee of a Condominium pursuant to its mortgage in the case of a distribution to
such Condominium Owner of insurance proceeds or condemnation awards for losses to or a taking of the of
Common Area property.
19.7. NOTIFICATION TO ELIGIBLE MORTGAGEE HOLDER.

Upon written request to the Association, identifying the name and address of the holder,
insurer or guarantor and the Condominium number or address, any Eligible Mortgage Holder or Eligible
Insurer will be entitled to timely written notice of:
(a) Any condemnation loss or any casualty loss which affects a material portion of the
Project or the Condominium insured or guaranteed by such Eligible Mortgage Holder or Eligible Insurer;
(b) Any default in the performance by an Owner of any obligation under the Project
Documents not cured within sixty (60) days;

(c) Any lapse, cancellation or material modification of any insurance policy or fidelity
bond maintained by the Association; and
(d) Any proposed action which would require the consent of a specified percentage of
Eligible Mortgage Holders as required by the Project Documents.
19.8. AGREEMENT FOR MANAGEMENT.

Any management agreement of the Project, or any portion thereof, and any other contract
providing for services by the Declarant. shall be terminable for cause upon thirty (30) days written notice, and
without cause or payment of a termination fee upon ninety (90) days, written notice and shall have a term of
not more than one (1) year, renewable with the consent of the Association and the management agent. The
Board shall not terminate professional management of Project and assume self-management, when
professional management had been required previously by an Eligible Mortgage Holder, without the prior
written approval of Mortgagees holding seventy-five percent (75%) or more of the First Mortgages on
Dwellings.
19.9. INSPECTION OF PROJECT DOCUMENTS, BOOKS AND RECORDS.

The Association shall make available to Eligible Mortgage Holders, current copies of the
Project Documents and the books, records and financial statements of the Association. "Available" means
available for inspection, upon request. during normal business hours or under other reasonable
circumstances.
19.10. NON-CURABLE BREACH.

Any Mortgagee who acquires title to a Condominium by foreclosure or by deed-in-lieu of
foreclosure or assignment-in-lieu of foreclosure shall not be obligated to cure any breach of this Declaration
that is non-curable or of a type that is not practical or feasible to cure. A "breach", as used herein, shall not
apply to any lien of or obligation for assessments owed to the Association which became due prior to the
acquisition of title by deed or assignment in lieu of foreclosure.
19.11. LOAN TO FACILITATE.

Any First Mortgage given to secure a loan to facilitate the resale of a Condominium after
acquisition by foreclosure or by a deed-in-lieu of foreclosure or by an assignment-in-lieu of foreclosure shall
be deemed to be a loan made in good faith and for value and entitled to all of the rights and protections of
this Article.
19.12. DOCUMENTS TO BE MADE AVAILABLE.

The Association shall make available to First Mortgagees and to holders, insurers or
guarantors of any First Mortgage, current copies of the Project Documents, and the books, records and
financial statements of the Association. "Available" means available for inspection, upon request, during
normal business hours or under other reasonable circumstances. Eligible Mortgage Holders who represent
at least fifty-one percent (51%) or more of the Condominiums subject to a Mortgage shall be entitled to have
an audited statement for the immediately preceding fiscal year prepared at their own expense, if one is not
otherwise available. Any financial statement so requested shall be furnished within a reasonable time
following the request.
In the event that fifty (50) or more Condominiums have been made subject to this
Declaration, then the Association shall make available to the holder, insurer or guarantor of any First
Mortgage, an audited financial statement on submission of a written request for the same. The audited
financial statement must be made available within one hundred twenty (120) days of the Association's fiscal
year end.
In the event fewer than fifty (50) Condominiums have been made subject to this Declaration,
then a First Mortgagee shall be entitled to have an audited financial statement, provided the same is
prepared at the Mortgagee's sole expense.

DECLARATION - 61 - • Dec_4474·80_0regonSt.doc
19.13. MORTGAGEES FURNISHING INFORMATION.
Any Mortgagee can furnish information to the Board concerning the status of any Mortgage.
19.14. FINANCIAL STATEMENT.

Any First Mortgagee shall be entitled, on written request therefor, to have an audited
financial statement for the immediately preceding fiscal year prepared at its own expense if one is not
otherwise available. Such statement shall be furnished within a reasonable time following such request.
19.15. TERMINATION WITHOUT SUBSTANTIAL DESTRUCTION.

Neither the Association nor Owners may elect to terminate the legal status of the Project for
reasons other than substantial destruction or condemnation of the Project without the written consent of
Eligible Mortgage Holders who represent at least sixty-seven percent (67%) of the votes of the mortgaged
Condominiums.
20. CONDOMINIUM PLAN AMENDMENT

20.1. AMENDMENT BY ASSOCIATION.
Subject to the restrictions and limitations set forth in this Article, Declarant reserves in favor
of the Association the right to amend the Condominium Plan in order:
(a) To cause the Condominium Plan to comply with the Condominium Buildings and
Units as actually built;
(b) To adjust the boundary or delineation lines of any Exclusive Use Common Area, so
to conform with actual physical attributes or constraints of the land or buildings that were not contemplated
originally; and/or
(c) To correct any errors in the original plan;
(d) Upon the conveyance of the first Condominium Unit in the Project to a Retail Buyer,
the rights described in subsections (a), (b) and (c) above shall become operative and shall be controlled by
the Board of Directors of the Association, together with the Power of Attorney described hereinafter, and may
be effected upon the majority vote of the Board, whereafter, such amendment shall be effective upon its
recordation in the Office of the San Diego County recorder, executed by the President and Secretary of the
Association, acting as Attorney-In-Fact on behalf of the Owners and those Persons described in the Section
entitled hereinafter "Power of Attorney."
20.2. RESTRICTIONS AND LIMITATIONS.

The rights of the Association set forth in this Article are and shall be subject to the specific
restriction and limitation that any amendment of the Condominium Plan that is made so to reflect a
Condominium Building or Unit therein as actually built. where a Unit in such Condominium Building is the
subject of an Agreement of Sale or is owned by an Owner or Owners other than Declarant, shall require the
written consent of such Unit purchaser or Owner; and in the case of an Owner, the written consent of all
beneficiaries of record whose interests are secured by such Unit or Units.
20.3. POWER OF ATTORNEY.

Each Owner. by accepting a deed to a Condominium. shall be deemed to have constituted
and irrevocably appointed for himself and each of his Mortgagees, optionees, grantees, licensees, trustees,
receivers, lessees, tenants, judgment creditors, heirs, legatees, devisees, administrators, executors, legal
representatives, successors and assigns, whether voluntary or involuntary, and thereby to have conveyed a
Power of Attorney coupled with an interest to the Association by its President and Secretary, as his Attorney-
In-Fact, to effect the amendment of the Condominium Plan or Plans for the Project in accordance with the

DECLARATION -62- 'Dec_4474·80_0regonSt.doc
limitations and requirements set forth in this Article, and in connection therewith, the following shall be
operative:
(a) Such amendment or re-recordation shall be subject to the laws of the State of
California in effect on the date of recordation of this Declaration and as thereafter enacted or amended and
any ordinances, rules and regulations of any federal, state and local governmental entities and authorities
having jurisdiction over the Project in effect on the date of recordation of this Declaration and as thereafter
enacted or amended, or which may be required or permitted by any title insurer or the San Diego County
Recorder, and in connection therewith, to perform all conditions, undertake any obligations and execute all
agreements and documentation required or permitted by any federal, state or local governmental entities and
authorities; and to execute, acknowledge and deliver any improvement agreements and bonds and post
deposits securing the performance of any such conditions and obligations;
(b) The Association shall, if required, make application for any property reports or
amendments thereto or exceptions from the requirements therefor required or permitted in order to comply
with any federal, state or local statutes, rules and regulations relating to the sale, lease, transfer or other
disposition of subdivided lands to the public and, in connection therewith to perform all conditions, undertake
any obligations and execute all agreements and documentation required or permitted by any federal, state
and local governmental entities and authorities; to appear before any such governmental entities and
authorities; and to execute and deliver any agreements and bonds securing the performance of the
obligations contained therein;
(c) The Association shall deliver any reports or property reports, or amendments
thereto, obtain receipts and offer and administer rescission rights required by law;
(d) The Association shall prepare or cause to be prepared, execute, acknowledge, file
or cause to be filed for approval and file or record or cause to be filed or recorded any registration or any
application for any permit, approval, exemption, ruling or entitlement required or permitted pursuant to any
law or regulation in effect as of the date of the recording of this Declaration and as hereafter enacted or
amended by any federal, state or local governmental entities and authorities, and in connection therewith to
perform all conditions, undertake any obligations and execute all agreements and documentation required or
permitted by such governmental body and by any such laws and regulations; to appear before any such
governmental bodies and to execute and deliver any agreement and bonds and post deposits securing the
performance of any such conditions and obligations; and do all other things now or hereafter permitted or
required by any such governmental body and any such laws and regulations:
(e) To prepare or cause to be prepared, execute, acknowledge and record or cause to
be recorded any deeds, waivers, releases, reconveyance or other documentation that may be permitted or
required to clear title to any Condominium, whether constructed or to be constructed, in the Project; and
(f) To do any and all things necessary or desirable under the circumstances to effect
and accomplish the amendment of the Condominium Plan.
20.4. INDEMNIFICATION OF OWNERS ON EXERCISE OF POWER OF ATIORNEY.

The Association shall indemnify and hold each Owner harmless from all liabilities, including
attorney's fees, which are incurred as a direct result of the execution by the Association of any improvement
agreements or bonds, or both, in connection with the exercise by the Association of the Power of Attorney
set forth in the Section herein entitled "Power of Attorney."
20.5. ENCUMBRANCES TO TAKE SUBJECT TO POWER OF ATIORNEY.

The acceptance or creation of any Mortgage, whether voluntary or involuntary, and whether
or not created in good faith and whether or not given for value, shall be deemed to be accepted and/or
created subject to each of the terms and conditions of the Power of Attorney described in the Section entitled
"Power of Attorney."

DECLARATION - 63- • Dec_4474-SO_OregonSt.doc
20.6. EFFECT ON ASSESSMENTS LIENS.
The amendment to the Condominium Plan in accordance with the provisions of this Article
shall not alter or affect the amounts of any Regular or Special Assessments which were due from any Owner
prior to such recording or liens thereof.
20.7. AMENDMENT BY DECLARANT.

Declarant may amend any Condominium Plan covering any Unannexed Phase in the
Property in accordance with the provisions therefor contained in Civil Code Section 1351 (e) and Government
Code Section 66427.
21. AMENDMENTS
21.1. PRIOR TO FIRST LIVING UNIT CONVEYANCE.

Prior to the close of escrow on the sale of the first Condominium Unit in the Property,
Declarant may unilaterally amend this Declaration.
21.2. AFTER CONVEYANCE OF FIRST UNIT.

Except as may be in accordance with the provisions of California Civil Code Sections 1355
and 1368 or any amendment or successor statute thereto, during the period of time after the sale of the first
Condominium, and prior to conversion of the Class B membership in the Association to Class A membership,
this Declaration may be amended at any time and from time to time by the vote or written assent of sixty-
seven percent (67%) of the total voting power of each class of Members of the Association. After conversion
of the Class B membership in the Association to Class A membership, this Declaration may be amended at
any time and from time to time by the vote or written assent of (i) sixty-seven percent (67%) of the total
voting power of the Association, and (ii) sixty-seven percent (67%) of the voting power of the members of
the Association other than Declarant. However, the percentage of voting power necessary to amend a
specific clause or provision shall not be less than the prescribed percentage of affirmative votes
required for action to be taken under that clause. Any such amendment shall become effective upon the
recording with the with the County Recorder of a Certificate of Amendment signed and acknowledged by the
President or Vice President of the Association and the Secretary or Assistant Secretary of the Association. or
by the incorporator of the Association, in the event that no Board of Directors has yet been elected to
establish officers of the Association, certifying that such votes or written consent have been obtained. For the
purposes of recording such instrument, the President or Vice-President and Secretary or Assistant
Secretary, or incorporator of the Association are hereby granted an irrevocable power of attorney to act for
and on behalf of each and every Owner in certifying and executing and recording said amendment with the
with the County Recorder. No material amendment may be made to this Declaration without the additional
prior written consent of Eligible Mortgage Holders who represent at least fifty.one percent (51%) of the votes
of Units which are subject to mortgages held by such Eligible Mortgage Holders. "Material amendment"
shall mean any amendment to provisions of this Declaration that establish, provide for, govern or regulate
any of the following:
(a) Voting rights;
(b) Increases in assessments that raise the previously assessed amount by more than
25%. assessment liens, or the priority of assessment liens;
(c) Reduction in reserves for maintenance, repair, and replacement of ihe Common
Area;
(d) Responsibility for maintenance and repairs;
(e) Reallocation of interests in the Project. or rights to their use;
(f) Redefinition of the boundaries of any Condominium;

(g) Convertibility of Condominiums into Common Areas or visa versa;
(h) Expansion or contraction of the Project, or the addition, annexation or withdrawal of
property to or from the Project;
(i) Insurance or fidelity bond coverage;
U) Leasing of Dwellings;
(k) Imposition of any restrictions on an Owner's right to sell or transfer his or her
Dwelling;
(I) Any decision by the Board to establish self-management when professional
management had been required previously by the Project Documents or by an Eligible Mortgage Holder;
(m) The restoration or repair of the Project (after hazard damage or partial
condemnation) in a manner other than that specified in the Project Documents;
(n) Any action to terminate the legal status of the Project after substantial destruction or
condemnation occurs; or
(o) Any provisions that expressly benefit Mortgage Holders, insurers or guarantors.
(p) Any Eligible Mortgage Holder or Eligible Insurer who receives a written request to
consent to additions or amendments requiring consent under this provision who does not deliver or post to
the requesting party a negative response within thirty (30) days after such receipt shall be deemed to have
consented to such request, provided that notice was delivered by certified or registered mail, with a "return
receipt" requested.
21.3. AMENDMENTS FOR TECHNICAL ERRORS, CLARIFICATION AND CHANGES

IN LAW.
Each Owner by acceptance of conveyance of title to a Condominium and each Mortgagee
by acceptance of a Mortgage or Deed of Trust secured by a Condominium, hereby agrees and consents to
the amendment of this Declaration, the Condominium Plan, the Bylaws and any other Governing Document
(including any amendments respectively thereto) and the subordination of their respective interests in the
Property for the purpose(s) of correcting manifest and technical errors, omissions or clarifications and/or to
effect compliance of one or more provisions of this Declaration or other Governing Document with such
amendments, repeals and/or additions made to statutory law, whereby the provisions contained in this
Declaration or any other Governing Document are in conflict therewith The foregoing notwithstanding, to the
extent that the provisions set forth in this Declaration are intended to comply with the provisions of the
Common Interest Development Act as set forth at CIVIL CODE §1350 et seq. ("CID Act"), and any other
statutory law, upon any changes to the CID Act or other statutory law relating to such provisions of this
Declaration, the Board shall comply with such provisions of the CID Act and statutory law and the Board shall
have the right to amend this Declaration or any other Governing Document as a result of the changes to the
CID Act and statutory without any vote of the Members. Any such amendment may be executed by the
President or Vice-President and Secretary or Assistant Secretary or the Incorporator of the Association (and,
in the case of the Condominium Plan only, the Declarant), each of whom is hereby granted an irrevocable
power of attorney to act for and on behalf of each and every Owner and Mortgagee in certifying and
executing and recording any such correctional, clarification addition or statutory law compliance amendment
instrument with the County Recorder, each of which such amendments shall become effective upon its
Recordation.
~ ENFORCEMENT
22.1. TERM
These CC&RS shall run with and bind the Property and shall inure to the benefit of and be
enforceable by the Association or any Member, their respective legal representatives, heirs, successors and

DECLARATION -65- A Dec_4474-SD_OregonSt.doc
assigns, for a term of sixty (60) years from the date this Declaration is Recorded, after which time said
CC&RS shall be automatically extended for successive periods of ten (10) years each, unless an instrument,
signed by sixty-seven percent (67%) of the then Members has been recorded, at least one (1) year prior to
the end of any such period in the manner required for a conveyance of real property, in which it is agreed
that this Declaration shall terminate at the end of the then applicable term.
22.2. ENFORCEMENT AND NON-WAIVER

The Association or any Owner/Member, including Declarant (collectively, the "Parties,"
individually, a "Party"), shall have the right of action against any Owner, and any Owner shall have a right of
action against the Association, to enforce by proceedings at law or in equity, all CC&RS now or hereafter
imposed by the provisions of the Governing Documents or any amendment thereto, including the right to
prevent the violation of such CC&RS and the right to recover damages or other dues from such violation
except that Owners shall not have any right of enforcement concerning Assessment Liens. The Association
shall have the exclusive right to the enforcement of provisions relating to aesthetics control (which shall
include architectural control) and the Operating Rules, unless the Association refuses or is unable to
effectuate such enforcement, in which case any Owner who otherwise has standing shall have the right to
undertake such enforcement. Failure of the Association, Declarant or any Owner to enforce any of the
CC&RS herein shall in no event be deemed a waiver of the right to do so thereafter.
22.3. PROCEDURE FOR ENFORCEMENT BY PARTIES

Anything herein to contrary notwithstanding set forth in Section 22.2 above, in enforcing any
action under the Governing Documents for injunctive relief, declaratory relief and/or monetary damages
(excluding actions in Small Claims Court), the Parties shall comply with the provisions of CIVIL CODE
§1354, §1363.810 et seq., §1368.3 et seq. and §1369.510 et seq., and any successor statute or law. The
Board shall annually provide to the Members a summary of the provisions of CIVIL CODE §§ 1354,
1363.810, 1363.840 et seq. and any successor statutes or laws, which shall include language required and
shall be delivered in the manner provided in CIVIL CODE §1365. The exception for disputes related to
Association assessments set forth in CIVIL CODE §1369.520(d) shall not apply to disputes between a
Member and the Association regarding Assessments imposed by the Association, if the Member choose to
pay in full the Association all of the assessments as specified in CIVIL CODE §1366.3 and any successor
statutes or laws.
22.4. DECLARANT-RELATED DISPUTE RESOLUTION
22.4.1. NOTICE OF ACTIONS AGAINST DECLARANT

Subject to the provisions of Section 22.4.2 hereof, the Association shall
comply with the provisions of Civil Code §1368.4, prior to the filing of any civil action by the Association
against the Declarant or other seller of Units in the Project for either alleged damage to Common Area or
other property within the Project that the Association is obligated to maintain or repair, or alleged damage to
any other portion of the Project that arises out of, or is integrally related to, such damage to the Common
Area or other property within the Project that the Association is obligated to maintain or repair. Such notice
shall specify all of the matters set forth in CIVIL CODE §1368.4 and any successor statues or laws.
22.4.2. ALTERNATIVE DISPUTE RESOLUTION

The purpose of this Section 22.4.2 is to provide an expedited means of
resolving any claims, disputes and disagreements which may arise after the Close of Escrow or other
conveyance of any portion of the Pr~rty by Declarant, between:
(a) Declarant, as the owner I seller of the Project, or any director,
officer, partner, member, employee or agent of the Declarant, or any contractor, subcontractor, design
professional, engineer or supplier who provided labor, services or materials to the Project and who is bound
or has agreed to be bound to the following dispute notification and resolution procedure , and either or both:
(b) the Association or a Purchaser I Owner

DECLARATION -66- A Dec_44 7 4-80_OregonSt.doc
relating to or arising out of the Property, or any portion thereof, or the Third Party Warranty, that
are not resolved pursuant to any applicable statutory dispute resolution procedures (individually
referenced to herein as "Dispute" and collectively as "Disputes"). Initially, Declarant will attempt to
resolve any Dispute asserted by an Owner or the Association of which it is given notice. If the
Dispute cannot be resolved between the parties in this manner, it will be decided through the
arbitration procedure as set forth below. Alternatively, the Parties may elect to resolve such
· Disputes through a small claims court proceeding.
THIS PROCESS INVOLVES WAIVERS OF THE RIGHTS TO A JURY TRIAL. BY EXECUTING

THIS DECLARATION OR ACCEPTING A DEED TO ANY PORTION OF THE PROPERTY,
RESPECTIVELY, DECLARANT, EACH OWNER AND THE ASSOCIATION, AGREE TO BE
BOUND BY THE PROVISIONS OF THIS SECTION.
22.4.3. NOTICE AND OPPORTUNITY TO CURE

If an Owner purchased its Condominium directly from the Declarant, such
Owner shall follow the procedures set forth in the Limited Warranty during the period that the Limited
Warranty is in effect. If (i) an Owner did not purchase its Condominium directly from the Declarant, (ii) any
applicable warranty period has expired, and (iii) the issue in Dispute is not covered by the Limited Warranty,
and an Owner discovers an unsatisfactory condition in the Property that the Owner feels may be the
responsibility of Declarant ("Condition"), Owner shall notify Declarant in writing. Such notice shall include: (a)
a description of the Condition, (b) the date upon which the Condition was discovered, and (c) dates and
times when Owner or Owner's agent will be home during ordinary business hours so that service calls or
inspections by Declarant can be scheduled. Declarant shall, in its sole discretion, be entitled to inspect the
Condominium regarding the reported Condition and within its sole discretion, be entitled to cure such
Condition. Owner shall not pursue any other remedies available to it under this Declaration, at law or
otherwise, including without limitation the filing of any lawsuit or action, until Declarant has had the
reasonable opportunity to inspect and cure the alleged Condition. During the period of such inspection and
cure (but not to exceed the earlier to occur of (i) ninety (90) days from the date of Declarant's receipt of
Owner's notice described above, or (ii) Declarant's delivery of written notice to Owner of Declarant's
determination not to proceed with such cure), all applicable statutes of limitation shall be tolled. The
Association shall follow the procedures set forth above regarding any Disputes involving the Association
Property or Common Area. The procedures set forth above shall apply to all Disputes concerning the
Property and shall not be limited to Declarant's Work. Notwithstanding the foregoing, nothing set forth in this
Section shall give rise to any claims of an Owner against Declarant arising from, or be considered an
assumption by Declarant of, any liability that an Owner has waived, accepted or released under this
Declarationor the purchase agreement.
22.4.4. GENERAL RULES

(Real Estate Commissioners' Regulation §2791.8)
(A) FEE TO INITIATE RESOLUTION PROCESS

Declarant shall be responsible for advancing the fee necessary to
initiate the Resolution Process.
(B) PAYMENT OF FEES

Resolution Process fees and costs - including those paid by
Declarant to initiate the Resolution Process and any ongoing fees and costs - shall be paid as mutually
agreed upon by the Parties. In the event the Parties cannot agree upon the mutual payment of the fees and
costs, such fees and costs shall be paid as determined by the person or persons presiding at the Resolution
Process.

(C) NEUTRAL, IMPARTIAL FACILITATOR
A neutral or impartial person(s) ("Facilitator" or "Resolution
Facilitator") shall oversee, administer and preside over the Resolution Process
(D) TIMELY APPOINTMENT OF OVERSEER

The Resolution Facilitator shall be appointed or selected within sixty
(60 days from the initiation of the Resolution Process. The person(s) appointed, selected, designated or
assigned as a Resolution Facilitator may be challenged for bias.
(E) VENUE
The venue of the Resolution Process shall be in the county where
the Property is located, unless the Parties agree in writing to another location.
(F) COMMENCEMENT AND TIMING

The proceeding or hearing of the Resolution Process shall
commence promptly at the earliest convenient date in light of all of the facts and circumstances and shall be
conducted without undue delay. The foregoing notwithstanding, should a specific Resolution Process be
utilized, such Resolution Process shall be deemed to be promptly and timely commenced if it is to be
commenced in accordance with the rules applicable to such Resolution Process; if the rules thereof,
however, do not specify a date by which the proceeding or hearing of such Resolution Process must
commence, then such hearing or proceeding shall commence on a date mutually agreed upon by the
Parties, and if they cannot agree, then on a date determined by the Resolution Facilitator.
(G) FAIR AND REASONABLE RULES AND PROCEDURES

The Resolution Process shall be conducted in accordance with rules
and procedures that are reasonable and fair to the Parties.
(H) PROMPT ISSUANCE OF DECISION OR RULING

The Resolution Process shall conclude promptly and timely -
including the issuance of any decision or ruling following the proceeding or hearing.
(I) REMEDIES AVAILABLE TO RESOLUTION FACILITATOR

The Resolution Facilitator shall be empowered and authorized to
provide all recognized remedies available in law or equity for any cause of action that is the basis of the
Resolution Process proceeding or hearing.
(J) PUNITIVE DAMAGES

The Parties may authorize the limitation or prohibition of punitive
damages.
(K) JUDICIAL REMEDY

If a Resolution Process provides or allows for a judicial remedy in
accordance with Applicable Law, it shall be presumed that the proceeding or hearing satisfies the foregoing
General Rules.
22.4.5. DECLARANT RESOLUTION PROCESS

(A) NOTICE.
A Claimant with a claim defined as a Post-Closing Dispute above,
shall notify the Declarant and Declarant Party(ies) in writing of such claim, which writing shall describe the

nature of such claim and any proposed remedy ("Claim Notice'). Said Claim Notice shall be given to the
Declarant's and Declarant Parties' statutory agent pursuant to the "Notice" provisions of the Section
hereinafter entitled "Notice; Demand" Document Delivery" (NOTE: a Claimant may confirm the current name
and address of Declarant's agent by contacting, as of the date of Recordation of these CC&RS, the
California Secretary of State, Special Filings Unit, P.O. Box 94244-2250, or by telephone at (916) 653-3984 );
and/or through the following internet address: http://kepler.ss.ca.gov/list.html.
(B) RIGHT TO INSPECT AND RIGHT TO CORRECTIVE

ACTION
Within a reasonable period after receipt of the Claim Notice. which
period shall not exceed sixty (60) days, Declarant (and any applicable Declarant Parties) and the Claimant(s)
shall meet at a mutually-acceptable place within or near the Project to discuss the Dispute claim. At such
meeting or at such other mutually-agreeable time. Declarant (and any applicable Seller Parties) and their
respective representatives shall have full access to any property that is subject to the Dispute claim and shall
have the right to conduct inspections. testing and/or destructive or invasive testing of the same in a manner
deemed appropriate by Declarant (and any applicable Declarant Parties), which rights shall continue until
such time as the Dispute is resolved as provided in this Section 22.4. The parties to the Dispute shall
negotiate in good faith in an attempt to resolve the claim. If Declarant (and any applicable Declarant Parties)
elects to take any corrective action, Declarant (and any applicable Declarant Parties) and their respective
representatives and agents shall be provided full access to the Project to take and complete corrective action
(C) CIVIL CODE SECTIONS 1368.4, 1375, 1375.05 AND 1375.1

Nothing contained herein shall be deemed a waiver or limitation of
the provisions of CIVIL CODE §1354, §1363.810 et seq., §1368.3 et seq. and §1369.510 et seq., and any
successor statute or law. If the claim is subject to the provisions of CIVIL CODE §1354, §1363.810 et seq.,
§1368.3 et seq. and §1369.510 et seq., and any successor statute or law, compliance with the procedures of
these Sections shall satisfy the requirements of Sections (A}, (B) and 22.4.5(0), as applicable.
(D) MEDIATION
If the Parties to the Dispute cannot resolve the claim pursuant to the
procedures described in Section (B) above, the matter shall be submitted to mediation pursuant to the
mediation procedures adopted by Judicial Arbitration and Mediation Services ("JAMS") (except as such
procedures are modified by the provisions of this Section 22.4.5(D)) or any successor thereto or to any other
entity offering mediation services that is mutually acceptable to such parties. No person shall serve as a
mediator in any Dispute in which the person has any financial or personal interest in the result of the
mediation, except by the written consent of all Parties to the Dispute participating in the mediation. Prior to
accepting any appointment, the prospective mediator shall disclose any circumstances likely to create a
presumption of bias or to prevent a prompt commencement of the mediation process. Except as provided in
Section 22.4.8 below, Purchaser/Owner covenants that Purchaser/Owner shall not commence any
arbitration against the Declarant Parties without complying with the procedures described in this Section
22.4.5(0).
(E) POSITION MEMORANDA; PRE-MEDIATION

CONFERENCE
Within ten (10) days of the selection of the mediator. each Party to
the Dispute participating in the mediation shall submit a brief memorandum setting forth its position with
regard to the issues that need to be resolved. The mediator shall have the right to schedule a pre-mediation
conference and all parties to the Dispute participating in the mediation shall attend unless otherwise agreed.
The mediation shall be commenced within ten (10) days following the submittal of the memoranda and shall
be concluded within fifteen (15) days from the commencement of the mediation unless the parties to the
Dispute participating in the mediation mutually agree to extend the mediation period. The mediation shall be

DECLARATION -69- • Dec_4474·80_0regonSt.doc
held in the county in which the Project is located or such other place as is mutually acceptable to the parties
to the Dispute participating in the mediation.
(F) CONDUCT OF MEDIATION

The mediator has discretion to conduct the mediation in the manner
in which the mediator believes is most appropriate for reaching a settlement of the Dispute. The mediator is
authorized to conduct joint and separate meetings with the Parties to the Dispute participating in the
mediation and to make oral and written recommendations for settlement. Whenever necessary, the mediator
may also obtain expert advice concerning technical aspects of the Dispute, provided the Parties to the
Dispute participating in the mediation agree and assume the expenses of obtaining such advice. The
mediator does not have the authority to impose a settlement on the Parties to the Dispute participating in the
mediation.
(G) EXCLUSION AGREEMENT

Prior to the commencement of the mediation session, the mediator
and all Parties to the Dispute participating in the mediation shall execute an agreement pursuant to
EVIDENCE CODE § 1115 et seq. and any successor statute or laws in order to exclude the use of any
testimony or evidence produced at the mediation in any subsequent dispute resolution forum, including, but
not limited to, court proceedings, reference proceedings or arbitration hearings. Pursuant to EVIDENCE
CODE §1115 et seq., the agreement shall specifically state that evidence of anything said or of any
admission made in the course of the mediation is not admissible evidence, and disclosure of any such
evidence shall not be compelled in any civil action in which, pursuant to law, testimony can be compelled to
be given. Unless the document provides otherwise, no document prepared for the purpose of, or in the
course of, or pursuant to, the mediation, or copy thereof, is admissible in evidence; and disclosure of any
such document shall not be compelled in any civil action in which, pursuant to law, testimony can be
compelled to be given. The provisions of EVIDENCE CODE §§1115 through 1128 shall also be applicable
to such mediation process.
(H) PERSONS PERMITTED AT SESSIONS

Persons other than the Parties to the Dispute participating in the
mediation, their representatives and the mediator may attend mediation sessions only with the permission of
the Parties to the Dispute participating in the mediation and the consent of the mediator; provided, however,
that such permission and consent shall not be required to allow participation of such Parties' insurer in the
mediation to the extent required under such Parties' liability insurance policy. Confidential information
disclosed to a mediator by such Parties or by witnesses in the course of the mediation while serving in such
capacity shall be confidential. There shall be no stenographic record of the mediation process.
(I) EXPENSES
All expenses of the mediation, including, but not limited to, the fees
and costs charged by the mediator and the expenses of any witnesses or the cost of any proof or expert
advice produced at the direct request of the mediator, shall be borne equally by the Parties to the Dispute
participating in the mediation unless they agree otherwise. Each Party to the Dispute participating the
mediation shall bear its own attorneys' fees and other costs in connection with such mediation.
22.4.6. ARBITRATION
Claimant(s) and Decla;ant Parties shall resolve any Post-Closing Dispute
not resolved as provided above exclusively through a binding arbitration Resolution Process. This arbitration
provision shall apply to any unresolved Post-Closing Disputes of any kind or nature regardless of the relief
sought.

(A) FEDERAL ARBITRATION ACT
Because many of the materials and products incorporated into the
Property are manufactured in other states, the development and conveyance of the Property or any portion
thereof evidences a transaction involving interstate commerce and the FEDERAL ARBITRATION ACT (9
· U.S.C. §1 et seq.) ("The Act") now in effect and as it may be hereafter amended will govern the interpretation
and enforcement of the arbitration provisions under this Section 22.4. Accordingly, any and all unresolved
Post-Closing Disputes shall be arbitrated, which arbitration shall be mandatory and binding, pursuant to THE
ACT.
(B) WAIVER OF LITIGATION AND APPEAL

The Association, Owner(s) and Declarant:
(1) ARE GIVING UP RIGHTS THEY MIGHT HAVE TO HAVE

ANY POST-CLOSING DISPUTES LITIGATED IN A
COURT OF LAW.
(2) ARE GIVING UP THEIR RIGHTS TO APPEAL ANY

DECISION OF THE ARBITRATOR.
(3) SHALL BE COMPELLED TO ARBITRATE ANY AND ALL

POST-CLOSING DISPUTES OR CLAIMS.
(C) GENERAL ARBITRATION PROVISIONS

(1) JAMS Arbitration Procedures The arbitration procedures
adopted by Judicial Arbitration and Mediation Services ("JAMS") shall govern the conduct of the arbitration
("JAMS Rules").
(2) Waiver of Trial by Judge or Jury By agreeing to resolve

all Disputes through binding arbitration, Claimant(s) and Declarant Parties each agree give up the right to
have their respective claims and defenses decided by a judge or a jury. All claims and defenses shall
instead be decided by the arbitrator.
(3) Qualifications of Arbitrators The arbitrator shall be

neutral and impartial and an attorney or retired judge with at least ten (10) years experience in common
interest development real estate matters.
(4) Appointment of Arbitrator The arbitrator to preside over

the Dispute shall be selected in accordance with the JAMS Rules, but no later than sixty (60) days after a
notice of claim is filed.
(5) Expenses The fees and costs charged by JAMS and the
arbitrator ("Arbitration Expense'~ to initiate the arbitration Resolution Process shall be advanced by
Declarant. All Arbitration Expense, however, shall be paid as mutually agreed upon by the Parties. In the
event the Parties cannot agree upon the mutual payment of such Arbitration Expense, such Arbitration
Expense shall be paid as determined by the arbitrator. The foregoing notwithstanding, except as otherwise
agreed by the Parties or as required by Applicable Law, an Owner shall not be required to pay a total
Arbitration Expense greater than that that would be imposed upon the disputant if the Dispute had been filed
as a suit in court. The arbitrator may not award against an Owner any Arbitration Expense in excess of that
that would be recoverable as costs if the Post-Ciqsing Dispute had been litigated to final judgment in court.
(6) Attorneys' Fees and Costs Each Party shall bear its own
attorneys fees and costs (including expert witness costs) in the arbitration.

DECLARATION - 71 - 'Dec_4474-80_0regonStdoc
(7) Venue The venue of the arbitration shall be in the County
where the Property is located unless the Parties agree in writing to another location.
(8) Preliminary Procedures If state or federal law requires the

Association or an Owner or Declarant to take steps or procedures before commencing an action in court,
then the Owner or Declarant must take such steps or follow such procedures, as the case may be, before
commencing the arbitration. In addition, nothing contained herein shall be deemed a waiver or limitation of
the provisions of CIVIL CODE§§ 1368.4, 1375, 1375.05 or 1375.1.
(9) Participation by Other Parties The Association, an Owner

and Declarant, to the extent any such party is defending a claim in the arbitration, may, if it chooses, have all
necessary and appropriate parties included as parties to the arbitration. The absence of another Party's
· participation in the Resolution Process shall not be asserted or accepted as a reason by Claimant or
Declarant to delay, to refuse to participate in the Resolution Process, or to refuse to enforce this Section
22.4.
(10) Rules of Law The arbitrator must follow California

substantive law (including statutes of limitations) but strict conformity with the rules of evidence is not
required, except that the arbitrator shall apply Applicable Law relating to privilege and work product. The
arbitrator shall be authorized to provide all recognized remedies available at law or equity for any cause of
action.
(11) Decision of Arbitrator The arbitrator shall issue a prompt

and timely written decision within thirty (30) days after the hearing is closed, which decision shall be final and
binding upon the Parties. If an Owner, the Declarant or the Association request it, the arbitrator's written
decision shall include the reasons for it.
(D) ADDITIONAL RULES APPLICABLE TO CERTAIN CASES

In any arbitration in which a claim of Owner, the Association or
Declarant exceeds $250,000 in value, the following additional rules will supplement the JAMS Rules and
govern in the event of a conflict between the following rules and the rules set forth above, the JAMS Rules,
or both.
(1) Qualifications of Arbitrator The arbitrator shall be a

retired judge of the California Superior Court, a California Court of Appeal, or the California Supreme Court.
(2) Rules of Law The California Evidence Code shall apply.
(3) Reasoned Award The written decision by arbitrator shall

include the reasons for it.
(4) Additional Discovery Rights In addition to the discovery

rights provided for in the JAMS Comprehensive Arbitration Rules, the parties will have the following
discovery rights:
[a] Inspection. Examination and/or Test The right to
a reasonable inspection, examination and/or test of any site, defect, personal injury or property damage
relevant to any claim;
[b] Deposition of Opposing Party The right to take
one deposition of each opposing party for up to four hours. The deposition of a person designated by an
entity or organization as most knowledgeable, or an .individual officer or employee of an entity or
organization, shall count as the deposition of a party which is not a natural person.

[c] Deposition of Expert Witnesses The right to take
the deposition of each expert witness designated by an opposing party for up to four hours.
[d] Additional Depositions The arbitrator shall have
discretion to allow additional depositions and longer depositions upon a showing of good cause.
22.4.7. SEVERABILITY
Should any provision in this Section 22.4 be determined to be unenforceable
. or to have been waived, the remaining provisions shall be deemed to be severable therefrom and
enforceable according to their terms. In the event the arbitration Resolution Process is held not to apply or is
held invalid, void or unenforceable in its entirety for any reason, the Parties agree that all Post-Closing
Disputes shall be tried before a judge in a court of competent jurisdiction without a jury. The judge in such
court of competent jurisdiction shall have the power to grant all legal and equitable remedies and award
compensatory damages. The Parties each hereby waive and covenant not to assert their constitutional right
to trial by jury of Post-Closing Disputes. The Parties hereby covenant and agree that their mutual waiver of
jury trial shall be binding upon their respective successors and assigns and upon all persons and entities
asserting rights or claims or otherwise acting on behalf of the Parties or their successors and assigns.
22.4.8. EXCEPTIONS TO MEDIATION AND ARBITRATION; STATUTES

OF LIMITATION
The procedures set forth in this Section 22.4 shall apply only to Post-Closing
Disputes and shall not apply to any Dispute, matter or issue described in Section 22.3. Nothing in this
Section 22.4 shall be considered to toll, stay, reduce or extend any applicable statute of limitations; provided,
however, that the Parties shall be entitled to commence a legal action which in the good faith determination
of any Party is necessary to preserve the Parties' respective rights under any applicable statute of limitations.
provided that a Party shall take no further steps in prosecuting the action until it has complied with the
procedures described in this Section 22.4.
22.4.9. SURVIVAL; SUCCESSORS AND ASSIGNS

The rights and obligations of the Parties pursuant to this Section 22.4 shall
survive the Close of Escrow. This Section 22.4 and the rights, duties and obligations of the Parties shall be
binding upon and shall inure to the benefit of the heirs, executors, administrators. successors, and assigns of
the respective Parties.
22.5. MISCELLANEOUS PROVISIONS REGARDING

ENFORCEMENT AND LEGAL ACTION
22.5.1. FAILURE TO ENFORCE
Failure by any Owner, including Declarant, to enforce any provisions of this
Declaration shall in no event be deemed a waiver of the right to do so thereafter.
22.5.2. VIOLATION OF LAW

Any violation of any state, municipal or local Jaw, ordinance or regulation
pertaining to the ownership, occupation or use of any Unit within the Project is hereby declared to be a
violation of this Declaration and subject to the enforcement procedures herein set forth.
22.5.3. GOVERNING LAW

This Declaration shall be governed by and construed under the laws of the
State of California, the County and the City.

DECLARATION -73- 'Dec_4474-SO_OregonSt.doc
~ EXISTING CONDOMINIUM PROJECT DISCLOSURE
23.1. DOCUMENTATION/LIMITATION ON WARRANTIES.
(a) Future purchasers of a condominium, subject to this Declaration, and the
Association, as defined herein, are hereby advised by the Declarant of the following information:
(b) Reportedly, the Condominium Project was constructed in { }. The Declarant
does not warrant that the Project was constructed in accordance with the City building code in effect at the
time of original construction.
(c) The Declarant is neither a developer nor a builder nor was not involved in the
original construction of the Project.
(d) With the exception of "cosmetic changes" to the Project, the Declarant has not
changed the original construction of the Project.
(e) The Declarant represents that the following items in the Project will be in "working
condition" as of the close of escrow of each Condominium subject to this Declaration: appliances, roof,
plumbing, and electrical. With the exception of the foregoing representation, the Project is being sold "AS
IS."
(f) THE DECLARANT DOES NOT MAKE ANY WARRANT, EXPRESS OR IMPLIED,
AS TO THE CONDITION OF THE CONDOMINIUM AND/OR THE BUILDINGS IN WHICH THE
CONDOMINIUM ARE LOCATED, AS SHOWN AND DESCRIBED ON THE CONDOMINIUM PLAN
REFERRED TO IN SUBSECTION 1.4 HEREIN, OR WITH REGARD TO ANY IMPROVEMENTS LOCATED
WITHIN THE PROJECT BUT OUTSIDE OF THE CONDOMINIUM BUILDING.
(g) All Owners of Condominiums, their successors and assigns by acceptance of a
deed to a Condominium hereby agree to assume all risks of any future problems which may arise as a result
of the construction of the project by the Original Declarant and/or as a result of problems which may arise
with regard to the following items: appliances, roof, plumbing, and electrical.
24. GENERAL PROVISIONS

24.1. SEVERABILITY.
Should any provision in this Declaration be void or become invalid or unenforceable in law or
equity by judgment of court order, the remaining provisions hereof shall be and remain in full force and effect.
24.2. EXTENSION OF DECLARATION.

Each and all of these covenants, conditions and restrictions shall terminate on December 31,
2055, after which date they shall automatically be extended for successive periods of ten (10) years, unless
the Owners have executed and recorded at any time within six (6) months prior to December 31, 2055, or
within six (6) months prior to the end of any such ten (10) year period, in the manner required for the
conveyance of real property, a writing in which it is agreed that said restrictions shall terminate on December
31, 2055, or at the end of any such ten (10) year period.
24.3. ANNEXATION.
Upon approval in writing of the Association, pursuant to sixty-seven percent (67%) majority
of the voting power of its Members, excluding the voting power of the Declarant, the Owner of any property
who desires that it be added to the scheme of this Declaration and be subjected to the jurisdiction of the
Association, may file of record a Declaration of Annexation, which shall extend the scheme of this
Declaration to such property. After conversion of the Class B membership in the Association to Class A
membership, the action herein requiring membership approval shall require the vote or written consent of

DECLARATION - 74- 'Dec_4474-BD_OregonSt.doc
(a) sixty-seven percent (67%) of the voting power of Members of the Association, and (b) sixty-seven percent
(67%) or more of the voting power of Members of the Association other than Declarant.
24.4. APPROVAL BY FHA AND VA.

So long as there is a Class B membership, and provided that the Project has been approved
by the FHA and/or VA, the following shall require the prior approval of FHA and/or VA: annexation of
additional properties, de-annexation, mergers and consolidations, any special assessments and any
amendment of this Declaration. A draft of any amendment to this Declaration should be submitted to the VA
for its approval prior to its approval by the membership of the Association.
24.5. NOTICE.
In each instance in which notice or demand is to be given to the Owner and/or Occupant of a
· Dwelling/Lot. the same shall be in writing and may be served in one or more of the following manners:
24.5.1. PERSONAL SERVICE; HAND DELIVERY.

Personal service of a notice or demand to the Owner or to any one or more
co-Owners of the Condominium; to any general partner of a partnership which is the Owner of Record of the
Condominium; to the manager of a limited liability company which is the Owner of Record of the
Condominium; and/or to any officer or agent for service of process of a corporation which is the Owner of
Record of the Condominium, shall be deemed delivered to such Owner. co-Owners, partnership, limited
liability company or corporation, as the case may be.
24.5.2. SERVICE BY MAIL, EXPRESS MAIL.

Service by First Class U.S. Mail or by Express Mail must be deposited in a
post office, mailbox, substation or mail chute or other like facility regularly maintained by the United States
Postal Service, in a sealed envelope, with proper postage paid, addressed:
(a) TO OWNERS: To the Owner or Co-Owners of the Condominium at
the most recent address furnished by such Owner to the Secretary of the Board. or, if no such address shall
have been furnished then to the street (or Post Office Box) address of such Condominium;
(b) TO THE ASSOCIATION: To the 4474-4480 OREGON STREET
HOMEOWNERS ASSOCIATION at the principal office of the Association (or to such other address as the
Association may from time to time designate in writing to the Owners).
24.5.3. COMPLETION OF SERVICE.

Any notice or demand deposited with the U.S. Postal Service (a) by First
Class U.S. Mail shall be deemed delivered four (4) days after such deposit; and, (b) by Express Mail shall be
deemed delivered two (2) days after such deposit.
24.6. REPORTS TO PROSPECTIVE PURCHASERS; ESTOPPEL CERTIFICATE -

CIVIL CODE SECTION 1368.
In accordance with California Civil Code Section 1368, or any successor statute or law, the
Owner of a Condominium shall, as soon as practicable before transfer of title or execution of a real property
sales contract therefor, as defined in California Civil Code Section 2985, provide the following disclosures to
the prospective purchaser:
(a) A copy of the Declaration, Bylaws, Articles, Association Rules, and Architectural
Standards, if any;
(b) A copy of the most recent financial reports as required by the Bylaws;
(c) A certificate signed by an authorized representative of the Association as to the
amount of any assessments levied upon the Owner's interest in his Condominium which are unpaid on the

date of the Statement. The certificate shall also include information on late charges, interest and costs of
collection which, as of the date of the certificate, are or may be made a lien upon the Owner's Condominium,
pursuant to California Civil Code Section 1367, or any successor statute or law. A properly executed
certificate of the Association as to the status of assessments on a Condominium is binding upon the
Association as of the date of its issuance.
(d) Any change in the Association's current Regular and Special Assessments and fees
which have been approved by the Board, but have not become due and payable as of the date these
disclosures are provided.
(e) Upon written request, the Association shall. within ten ( 10) days of the mailing or
delivery of the request. provide the Owner of a Condominium with a copy of the items specified hereinabove.
The Association may charge a fee for this service, as well as a fee or assessment to change its records in
connection with the transfer of title to a Condominium. Any fees or assessments contained in this Section
shall not exceed the reasonable costs to prepare and reproduce the requested items or the actual costs to
change records.
24.7. NOTIFICATION OF SALE OR CONVEYANCE.

Concurrently with the consummation of the sale or other conveyance of any Condominium
where the transferee becomes an Owner of the Condominium, within five (5) business days thereafter, the
transferee shall notify the Association in writing of such sale or conveyance. Such notification shall set forth
the name of the transferee and his Mortgagee and transferor, the common address of the Condominium
purchased by the transferee, the transferee's and the Mortgagee's mailing address, and the date of sale or
conveyance. Before the receipt of such notification, any and all communications required or permitted to be
given by the Association, the Board, the Board's delegated committee or the Association's manager shall be
deemed to be duly made and given to the transferee if duly and timely made and given to the transferee's
transferor. Mailing addresses may be changed at any time upon written notification to the Association.
Notices shall be deemed given and given in accordance with the provisions of the Section herein entitled
"Notice."
24.8. EASEMENTS RESERVED AND GRANTED.

Any easements referred to in this Declaration shall be deemed reserved or granted, or both
reserved and granted, by reference to this Declaration in a deed to any Condominium.
24.9. GOVERNING DOCUMENTS.

In the event of a conflict between this Declaration and any other Project Document, the
provisions of this Declaration shall control.
24.10. SINGULAR INCLUDES PLURAL.

Whenever the context of this Declaration requires same, the singular shall include the plural
and the masculine shall include the feminine.
24.11. LIBERAL CONSTRUCTION.

The provisions of this Declaration shall be liberally construed to effectuate its purpose of
creating a uniform plan for the development of a residential community and for the maintenance of the
Project. The titles or headings of the Articles or Sections of this Declaration have been inserted for
convenience only and shall not be considered or referred to in resolving questions or interpretation or
construction.

DECLARATION -76- A Dec_44 7 4-80_OregonSldoc
IN WITNESS WHEREOF, the undersigned, being Declarant herein, has executed this
instrument this day o f - - - - - - - - - - - - -
DECLARANT:
By:--.,....--------------
Eric W. Vaca
(Please Attach Proper Notary Certificate(s) of Acknowledgment)

DECLARATION Signature Page "Dec_4474·80_0regonst.doc
ALL·PURPOSE ACKNOWLEDGMENT
State of California
County of San Diego
O n - - - - - - - - - before m e , - - - - - - - - - - - - - ' a Notary Public,

personally appeared
D personally known to me OR D proved to me on the basis of satisfactory

evidence to be the person(s) whose
name(s) is/are subscribed to the within
instrument and acknowledged to me that
he/she/they executed the same in his/her/
their authorized capacity(ies), and that by
his/her/their signature(s) on the
instrument, the person(s), or the entity
upon which the person(s) acted, executed
the instrument.
WITNESS my hand and official seal.
jurat. doc (1 0/95)

SUBORDINATION AGREEMENT
MORTGAGE ELECTRONIC REGISTRATION SYSTEMS. INC., being the beneficiary

under that certain Deed of Trust, dated JULY 23. 2004 and recorded JULY 28, 2004
as Instrument No. 2004~0708543 of Official Records in the Office of the County
Recorder of San Diego County, California, hereby declares that the lien and charge of
said Deed of Trust is and shall be subordinate to the Declaration to which this
Subordination Agreement is attached.
DATE:
MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC.
By:
(Title)
(Please Attach Notary Certificate(s) of Acknowledgment)
4474-4480 OREGON STREET CONDOMINIUMS

Subordination to Declaration
ALL .. PURPOSE ACKNOWLEDGMENT
State of California
County of San Diego

personally appeared
0 personally known to me OR 0 proved to me on the basis of satisfactory

their authorized capacity(ies}, and that by
the instrument.
jurat. doc (1 0/95)

SUBORDINATION AGREEMENT
MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., being the beneficiary

under that certain Deed of Trust, dated JULY 23, 2004 and recorded JULY 28, 2004
as Instrument No. 2004-0708544 of Official Records in the Office of the County
Recorder of San Diego County, California, hereby declares that the lien and charge of
said Deed of Trust is and shall be subordinate to the Declaration to which this
Subordination Agreement is attached.
DATE:
By:
(Title)
(Please Attach Notary Certificate(s) of Acknowledgment)

Subordination to Declaration
ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of San Diego
On _ _ _ _ _ _ _ _ _ before m e , - - - - - - - - - - - - - ' a Notary Public,

personally appeared

the instrument.
jurat.doc (10/95)
EXHIBIT "A"- LEGAL DESCRIPTION
PARCEL _1L_ OF PARCEL MAP NO. ######, IN THE CITY OF SAN

DIEGO, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, FILED IN
THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY,
4474-4480 OREGON STREET • oec_4474·so_oregonst.doc:

DECLARATION Exhibit "A"- Legal Description
Recording Requested By:
and
When Recorded Mail To:
CCI
REF: 4474-4480 OREGON STREET
7777 ALVARADO RD STE 615
LA MESA CA 91941-3649
SPACE ABOVE FOR RECORDER'S USE
INDEX AS "CONDOMINIUM PLAN"
CERTIFICATE OF CONSENT TO RECORDATION

OF
CONDOMINIUM PLAN PURSUANT TO CIVIL CODE
SECTION 1351(e)
4474-4480 OREGON STREET CONDOMINIUM PLAN

THE UNDERSIGNED, ERIC W. VACA, being the record owner of the property
("Property") hereinbelow described, does hereby consent to the recordation of the
hereinafter described Condominium Plan (the "Plan") pursuant to California Civil Code
Section 1351(e).
Said Property is situated in the City of San Diego, County of San Diego, State of
California, and is legally described as:
LEGAL DESCRIPTION:
PARCEL .JL OF PARCEL MAP NO. ######, IN THE CITY

OF SAN DIEGO, COUNTY OF SAN DIEGO, STATE OF
CALIFORNIA, FILED IN THE OFFICE OF THE COUNTY
RECORDER OF SAN DIEGO COUNTY,-----~
Said property shall be a Common Interest Development ("Project") pursuant to
California Civil Code Section 1351 (c)(2) and as more fully defined in Civil Code Section 1351 (f).

CERTIFICATE OF CONSENT .1- • CP_ 4474-BO_OregonSt.doc
Attached hereto, and by reference made a part hereof, is a diagrammatic plan
("Condominium Plan" or "Plan") of the Project and the separate interests therein, consisting of
(i) a description of the Project that refers to or shows monumentation on the ground, and (ii) a
three-dimensional description of the Project in sufficient detail to identify the Common Area and
each separate interest.
The Project comprises four (4) Units and the appurtenances as shown thereon.
The symbols used in the Plan are defined as follows:
LU-# Means and refers to a Living Unit or Unit, the terms being
synonymous.
P-# Means and refers to Porch Exclusive Use Common Area.
Y-# Means and refers to Yard Exclusive Use Common Area.
G-# Means and refers to Garage Exclusive Use Common Area.
PS-# Means and refers to Parking Space Exclusive Use Common Area.
The Project and this Plan are subject to the terms, provisions and conditions
stated in that certain DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
FOR "4474-4480 OREGON STREET" recorded concurrently herewith (the "Declaration").
Each definition set forth in the Declaration Article entitled ''DEFINITIONS," except as may be
otherwise or further defined and/or contextualized herein, shall have the same meaning within
this Plan and each such definition is by this reference incorporated herein and made a part
hereof.

CERTIFICATE OF CONSENT . 2- A CP_ 4474-80_0regonSt.doc
IN WITNESS WHEREOF, this Certificate of Consent has been executed this day
of ____________________________________________________
DECLARANT:
By:-----------
ERIC W. VACA
(Please Attach Proper Notary Certificate(s) of Acknowledgment)

CERTIFICATE OF CONSENT " CP_ 4474·80_0regonSt.doc
State of California
County of San Diego

personally appeared

the instrument.
JUrat doc (1 0/95)

ACKNOWLEDGMENT BY BENEFICIARY

under that certain Deed of Trust recorded JULY 28. 2004 as Instrument No. 2004-
0708543 of Official Records in the Office of the County Recorder of San Diego County,
California, does hereby acknowledge by signature below, pursuant to California Civil
Code Section 1351 (e), the recordation of the foregoing "Certificate of Consent to
Recordation of Condominium Plan Pursuant to Civil Code Section 1351 (e).
DATED:
By:
(Title)
(Please Attached Proper Notary Certiflcate(s) of Acknowledgment)

Acknowledgement By Beneficiary
State of California
County of San Diego

personally appeared
0 personally known to me OR 0 proved to me on the basis of satisfactory

his/her/their signature{s) on the
the instrument.
jurat. doc (1 0/95)

ACKNOWLEDGMENT BY BENEFICIARY

under that certain Deed of Trust recorded JULY 28, 2004 as Instrument No. 2004~
0708544 of Official Records in the Office of the County Recorder of San Diego County,
California, does hereby acknowledge by signature below, pursuant to California Civil
Code Section 1351 (e), the recordation of the foregoing "Certificate of Consent to
Recordation of Condominium Plan Pursuant to Civil Code Section 1351 (e).
DATED:
By:
(Title)
(Please Attached Proper Notary Certificate(s) of Acknowledgment)
4474·4480 OREGON STREET CONDOMINIUMS

Acknowledgement By Beneficiary
ALL ..PURPOSE ACKNOWLEDGMENT
State of California
County of San Diego

personally appeared

the instrument.
jurat doc (1 0/95)

Declaration OF Covenants, Conditions and Restrictions FOR "447 4-4480 OREGON STREET"

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Declaration OF Covenants, Conditions and Restrictions FOR "447 4-4480 OREGON STREET"

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Recording Requested By:

When Recorded Mail To:

SPACE ABOVE FOR RECORDER'S USE

COVENANTS, CONDITIONS AND RESTRICTIONS

"4474-4480 OREGON STREET"

• Dec_ 4474-BO_OregonSt.doe DRAFT(9)r2:050806

4474~4480 OREGON STREET

4474-4480 OREGON STREET

9. MEMBERSHIP, VOTING, FIRST MEETING 16

10. RIGHTS, POWER AND DUTIES OF ASSOCIATION AND BOARD

11. RIGHTS OF OWNERS 20

4474-4480 OREGON STREET

4474-4480 OREGON STREET

ARCHITECTURAL AND DESIGN CONTROL 43

15. RESPONSIBILITIES OF MAINTENANCE 47

4474-4480 OREGON STREET

DAMAGE AND DESTRUCTION. 55

4474-4480 OREGON STREET

20. CONDOMINIUM PLAN AMENDMENT 62

4474-4480 OREGON STREET

23. EXISTING CONDOMINIUM PROJECT DISCLOSURE 74

24. GENERAL PROVISIONS 74

EXHIBIT "A"~ LEGAL DESCRIPTION ........................................................................................... 78

1.1. OWNERSHIP OF PROPERTY.

1.2. ESTABLISHMENT OF COMMON INTEREST DEVELOPMENT.

1.3. DESCRIPTION OF PROJECT.

1.3.1. NUMBER OF UNITS.

1.3.2. COMMON AREA.

1.4. CONDOMINIUM PLAN.

1.5. ESTABLISHMENT OF ASSOCIATION.

4474-4480 OREGON STREET

3.3. ASSOCIATION; HOMEOWNERS ASSOCIATION.

4474-4480 OREGON STREET

3.8. COMMON EXPENSE AREAS.

3.9. COMMON EXPENSES.

4474-4480 OREGON STREET

3.12. CONDOMINIUM BUILDING.

3.13. CONDOMINIUM DOCUMENTS and/or PROJECT DOCUMENTS.

3.14. CONDOMINIUM PLAN; PLAN.

3.16. COUNTY RECORDER.

3.18. DECLARATION; CC&RS.

3.20. ELIGIBLE INSURER, GUARANTOR.

3.21. ELIGIBLE MORTGAGE HOLDER.

3.23. EXCLUSIVE USE COMMON AREA.

3.26. FIRST MORTGAGE.

4474-4480 OREGON STREET

3.29. FIRST MORTGAGE.

3.32. INSTITUTIONAL MORTGAGEE.

3.34. LIVING UNIT, UNIT, CONDOMINIUM UNIT; LIVING AREA.

3.35. MAP; SUBDIVISION MAP.

4474-4480 OREGON STREET

3.43. PROJECT; CONDOMINIUM PROJECT.

3.45. RETAIL BUYER.

3.46. RULE CHANGE

44 74-4480 OREGON STREET

3.48. SEPARATE INTEREST.

3.49. SOUND ATTENUATION; FLOORING SPECIFICATIONS

4474-4480 OREGON STREET

(1) A construction drawing clearly indicating the type of flooring to be