HomeMy WebLinkAboutExhibit 04 Preliminary Declaration of Covenants, Conditions, Restrictions, Easements and Reservations
HFHEJC\CCR.HOA.MASON STREET DEVELOPMENT.02.17.2025
Filed for Record at Request of:
Habitat for Humanity of East Jefferson County
P.O. Box 658
Port Townsend, WA 98368
Washington State Recorder’s Cover Sheet (RCW 65.01)
Document Title:
Declaration of Covenants, Conditions, Restrictions, Easements and Reservations for
Mason Street Development
Reference Number(s) of Related Documents:
__________________________ (Final Unit Lot Subdivision Survey)
Grantor:
Habitat for Humanity of East Jefferson County
Grantee:
Habitat for Humanity of East Jefferson County
Salish Coast Housing, LLC
Mason Street Development Homeowners Association
Abbreviated Legal Description:
S2 T29 R1W TAX 9 SUBJ TO EASEMENTS
Additional legal description on page Exhibit A of document
Assessor’s Property Tax Parcel/Account Number(s):
PTN: 901-023-007
HFHEJC\CCR.HOA.MASON STREET DEVELOPMENT.02.17.2025
DECLARATION
OF
COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS, AND RESERVATIONS
FOR
MASON STREET DEVELOPMENT
(Mason Street Development is a plat community for purposes of RCW 64.90.225)
NOTICE REGARDING RESALE AND LEASING RESTRICTIONS
(RCW 64.90.225 (1)(K))
MASON STREET DEVELOPMENT IS A HABITAT FOR HUMANITY OF EAST JEFFERSON COUNTY
PROJECT DEVELOPED FOR SALE TO INCOME-QUALIFIED BUYERS ONLY. ALL HOMES ARE
SUBJECT TO RESALE RESTRICTIONS, LEASING PROHIBITIONS, THE RIGHT OF HABITAT OR ITS
SUBSIDIARY TO REPURCHASE THE HOME FOR THE RESTRICTED PRICE.
This Declaration of Covenants, Conditions, Restrictions, Easements, and Reservations for Mason
Street Development is made and dated for references purposes and effective on
_________________, 2024, by HABITAT FOR HUMANITY OF EAST JEFFERSON
COUNTY, a Washington non-profit corporation, hereinafter referred to as “Declarant.”
RECITALS
A. Declarant is the owner of that certain real property located within Jefferson County,
Washington, and legally described on Exhibit A attached hereto (the “Property”).
B. Declarant desires to subject the Property to the covenants, conditions, restrictions,
easements, and reservations set forth below.
SUBMISSION OF THE PROPERTY TO THIS DECLARATION
Declarant, being the sole owner of the Property, hereby submits the Property to the terms
of this Declaration and declares that it be forever held, sold, conveyed, encumbered, ground leased,
occupied and improved subject to the following covenants, conditions, restriction, reservations,
grants of easement rights, rights of way, liens, charges and equitable servitudes, which are for the
purpose of protecting the Property as a permanently affordable housing development for income
qualified individuals. This Declaration shall be binding on all parties having any right, title or
interest in the Property or any part thereof. This Declaration shall run with the land and bind
Declarant, its successors and assigns, all subsequent owners of the Property or any part thereof,
together with their grantees, successors, heirs, executors, administrators, or devisees. It shall be
interpreted pursuant to the Act and shall operate independent of the Act, should the Act be
inapplicable in any manner. Any conveyance, transfer, or sale of a Lot shall and hereby is deemed
to incorporate by reference all provisions of this Declaration. This Declaration shall be enforceable
by the Ground Lessor, the Association, and any first Mortgagee of any Home.
ARTICLE 1
DEFINITIONS
Section 1.1 Definitions. For the purposes of this Declaration and
any amendments hereto, the following definitions shall apply.
“Act” means the Washington Uniform Common Interest Ownership Act (RCW
Chapter 64.90).
“Approved Number of Homes” means one hundred and thirty eight (138) Homes for the
Property.
“Articles” shall mean the articles of incorporation of the Association.
“Assessments” shall mean all sums chargeable by the Association against a Lot, including,
without limitation: (a) general and special Assessments for Common Expenses; (b) charges and fines
imposed by the Association; (c) interest and late charges on any delinquent account; and (d) costs of
collection, including reasonable attorneys’ fees, incurred by the Association in connection with the
collection of a delinquent Owner’s account.
“Association” shall mean the Mason Street Development Homeowners Association, a
Washington non-profit corporation, as described more fully in Article 3, and its successors and
assigns.
“Association Ground Lease” shall mean a ground lease entered into by the Declarant or an
affiliate of Declarant, as owner and ground lessor of the Common Area Tract of the Plat with the
Association, as ground lessee, for the possession and use of the Common Area Tract pursuant to
and on the conditions set forth in the Association Ground Lease.
“Board” shall mean and refer to the Board of Directors of the Association, as provided for
in Article 4.
“Bylaws” shall mean the bylaws of the Association as they may from time to time be
amended.
“Common Area Tract” shall mean the land owned by the Ground Lessor and leased to the
Association pursuant to the Association Ground Lease.
“Common Areas” shall mean the improvements that benefit more than one Owner
including, without limitation, the Common Area Tract, shared parking lots, shared vehicular paths
including the fire access road, shared utility lines including side sewers, stormwater planters and
swales, shared paths, shared lighting, shared trees, planting, and irrigation, community mailbox
kiosks, community signage, and any project improvements that are not conveyed to and accepted
by the Jefferson County Public Utility District or Jefferson County, Washington.
“Common Expenses” shall mean the expenses and liabilities of the Association, including,
but not limited to, insurance and costs related to the maintenance (including watering), repair, and
replacement of the Common Areas.
“Common Expense Liability” shall mean the allocation of Common Expenses to the
Owners of the Homes equally, unless otherwise specified in Section 2.4.1.
“Declarant” shall mean Habitat for Humanity of East Jefferson County, a Washington non-
profit corporation.
“Declaration” shall mean this Declaration of Covenants, Conditions, Restrictions,
Easements, and Reservations for Mason Street Development and any amendments thereto.
“Easements” shall mean those certain easements for utilities, access, ingress, egress
identified on the Plat or otherwise recorded in the official records of Jefferson County, Washington
and encumbering all or any portion of the Property for the benefit of the Owners and/or other
beneficiaries.
“Ground Lease” shall mean any one or more ground leases entered into by the Declarant
or an affiliate of Declarant, as ground lessor, with the purchaser of a Home, as ground lessee, for
the possession of the land comprising the Lot pursuant to and on the conditions set forth in such
Ground Lease. As provided in Article 18 below, if Homes are sold on a fee simple, rather than
ground leased basis, then the term “Ground Lease” as used herein shall include the Permanent
Affordability Restrictive Covenant signed by Owner and Declarant or its assigns in connection
with the sale of the Lot, the term “Ground Lessor” as used herein shall mean Declarant and/or its
subsidiary, and the term “Home” shall mean the Lot together with all residential improvements
constructed on the Lot.
“Ground Lessor” shall mean the ground lessor under the any one or more Ground Lease.
“Home” shall mean the residential improvements constructed on a Lot.
“Landscaping and Tree Conservation Plan” shall mean the final Landscaping and Tree
Conservation Plan approved by Jefferson County, Washington in connection with the development
of the Property.
“Lot” shall mean and refer to any of the unit lots shown upon the recorded Plat of the
Property. Declarant shall retain title to the land comprising the Lot and the Owner shall have a
right to occupy the Lot pursuant to a Ground Lease from Declarant, unless fee simple conveyance
is required to obtain financing for the Home and/or Declarant otherwise elects to sell fee simple
title subject to a Permanent Affordability Restrictive Covenant.
“Member” shall mean a person entitled to membership in the Association pursuant to
Section 3.5 of this Declaration.
“Mortgage” shall mean a recorded mortgage or deed of trust that creates a lien against a
Home and/or an Owner’s leasehold interest in the land pursuant to a Ground Lease.
“Mortgagee” shall mean the beneficial owner, or the designee of the beneficial owner, of
an encumbrance on a Home or Lot created by a purchase money Mortgage. Mortgagees shall have
the same voting rights as the owners of any Lot subject to such Mortgage.
“Owner” shall mean the owner of record, whether one or more persons, of a fee simple title
to any Home.
“Plat” shall mean the Mason Street Development Plat No. _______________, recorded in
the official records of Jefferson County, Washington, under Recording No.
___________________ together with any and all subsequently filed amendments, corrections, or
addenda.
“Property” shall mean the real property more particularly described on Exhibit A and all
improvements and structures now or hereafter placed on the Property.
ARTICLE 2
COMMON AREAS
Section 2.1 Description of Common Area. The Common Area
consist solely of improvements serving the Property that benefit more than one Lot including
without limitation, improvements located within the Common Area Tract, shared parking lots,
shared vehicular paths including the fire access road, shared utility lines including side sewers,
stormwater planters and swales, shared paths, shared lighting, shared trees, planting, and irrigation,
community mailbox kiosks, community signage, and any project improvements that are not
conveyed to and accepted by the Jefferson County Public Utility District or Jefferson County,
Washington. Declarant reserves the right to create additional Common Area by easements
recorded after the Plat is recorded. Designation of an improvement as a Common Area does not
change the ownership of the improvement. Any Common Area located on an Owner’s Lot shall
be owned and insured by such Owner unless otherwise provided herein or in a separate deed of
conveyance.
Section 2.2 Damage to Common Area. Each Owner shall be
personally liable for any damage to any Common Area or any other area maintained by the
Association or to any other property of the Association, whether real or personal, if caused by the
Owner or the Owner’s family member, guest, agent, or invitee. The Association may record a lien
upon the Owner’s Home and/or Lot for the amount of such damages as determined by the Board.
Section 2.3 Maintenance.
2.4.1 General. The Association shall have full responsibility for the
maintenance, repair, replacement and improvement of the Common Area, including any common
utilities located therein, to the extent they are not maintained by a public utility. All such areas
and facilities shall be reasonably maintained for their intended use, subject to applicable
governmental restrictions. The cost of such maintenance, repair and replacement shall be included
in the Association Budget and such costs shall be allocated equally among all Lot Owners
Section 2.4 Association Functions. There is hereby reserved to
Declarant and the Association or their duly authorized agents and representatives such easements
as are necessary to perform the duties and obligations of the Association as are set forth in the
Declaration, or in the Bylaws, and rules and regulations adopted by the Association.
Section 2.5 Section 2.5 Ground Lessor Right to Cure. The
Association’s obligation to maintain the Common Areas in the manner
described in this Declaration is a requirement of each Owner’s acquisition
of a Home through Declarant’s permanent affordability homeownership
program. If the Association fails to maintain, repair, or replace those
improvements and/or to perform any other work required by applicable
governmental entity or otherwise in this Declaration, the Ground Lessor
reserves the right (but not the obligation) to do so and charge each Owner a
proportionate share of such costs as an additional fee due under the Ground
Lease.
ARTICLE 3
OWNERS ASSOCIATION
Section 3.1 Establishment. There is hereby created an
association called the Mason Street Development Homeowners Association.
Section 3.2 Form of Association. The Association shall be a
nonprofit corporation formed and operated under the laws of the State of Washington.
Section 3.3 Articles and Bylaws. Declarant will adopt Articles
of Incorporation and Bylaws to supplement this Declaration. In the event of any conflict between
this Declaration and the Articles or Bylaws for such nonprofit corporation, the provisions of this
Declaration shall prevail.
Section 3.4 Board.
3.4.1 Board Composition. The affairs of the Association shall be managed by a
Board. The number of Directors which shall constitute the initial Board shall be at least three (3).
Directors appointed by the Declarant need not be Owners. After control of the Association passes
to the Owners (as provided in Section 3.4.2 below), directors shall be owners of the Homes. At
least one third (1/3) of the terms of the members of the Board shall expire annually as provided in
the Bylaws. In addition to the initial board members, the Ground Lessor shall be entitled to appoint
an additional director to serve on the Board in an advisory, non-voting capacity. The Ground
Lessor appointed board member need not be a member of the Association.
3.4.2 Declarant Control. Declarant shall have the right to select some or all of the
directors until the earliest of the following events happens:
(1) a date sixty (60) days after the conveyance of seventy-five (75%) of
the Homes to income qualified individuals; or
(2) a date two (2) years after the last conveyance or transfer of record of a
Home except as security for a debt; or
(3) the date on which Declarant records an amendment to the
Declaration to voluntarily surrender the right to further appoint and remove officers and members
of the Board.
Upon the happening of any of the foregoing events, the directors selected by Declarant shall resign,
to be succeeded by directors elected by the Owners, and the control of the Association thereafter pass
from Declarant to the Owners. During the period of Declarant control, Declarant may veto or approve
a proposed action of the Board or the Association, provided such action is taken in writing within
thirty (30) days after receipt of written notice of the proposed action. Failure of Declarant to timely
veto or approve a proposed action shall be deemed approval by Declarant.
3.4.3 Directors from Owners Appointed by Declarant. Not later than sixty (60) days
after conveyance of twenty-five percent (25%) of the Homes to owners other than Declarant, at least
one (1) member (and not less than twenty-five percent (25%) of the Board) must be elected by Owners
other than Declarant. Further, no later than sixty (60) days after conveyance of fifty percent (50%) of
the Units, not less than one-third (1/3) of the Board must be elected by Owners other than Declarant.
3.4.4 Election by Members of Directors. Within thirty (30) days after the
termination of the period of Declarant control, the Owners shall elect a Board of at least three (3)
members, a majority of whom must be Owners. The Board shall then elect its officers from the
members of the Board, as set forth in the Bylaws. The members of the Board and officers shall take
office upon election.
3.4.5 Removal of a Director. The Owners, by a two-thirds (2/3) vote of the
members of the Association present and entitled to vote at a meeting of the Owners at which a quorum
is present, may remove any member of the Board with or without cause, other than a member
appointed by Declarant during the period of Declarant control. Declarant may not remove any
member of the Board elected by the Owners, even if that Director was elected during the period of
Declarant control. Further, prior to the termination of the period of Declarant control, the Owners,
other than Declarant, may remove by a two-thirds (2/3) vote any Director elected by the Owners.
3.4.6 Standard of Care. The duty of care required of Directors shall be ordinary and
reasonable care. However, if the statutory standard of care is, at any time, different than the standard
of care set forth herein or in the Bylaws, this Declaration and/or the Bylaws shall be deemed amended
so that the standard of care shall be that standard set forth statutorily in the State of Washington. This
subsection shall not apply where the consequences of such act, omission, error, or negligence are
covered by the insurance obtained by the Board.
3.4.7 Indemnification. The Association shall indemnify its directors and officers
against all liability, damage, and expenses arising from or in connection with service as directors and
officers of the Association to the maximum extent and under all circumstances permitted by law as
otherwise as provided in Section 10.2.
3.4.8 Ground Lessor Consent Required. All actions taken by the Association shall
be consistent with and in full compliance with the provisions of the Ground Leases and the
Association Ground Lease unless the prior written consent of the Ground Lessor is obtained.
3.4.9 Appointment of Professional Directors. Active management of the
Association through the Board is a requirement for purchase of a Home within Habitat’s permanent
affordability program. If Owners fail to elect directors and officers to manage the Association, or
such directors and officers fail to perform the duties described in this Declaration, the Bylaws, or the
Act, the Ground Lessor may, upon thirty (30) days prior written notice to each Owner, retain
professional directors to lead the Association and charge the fees and costs for such service to each
Owner as an additional fee due under the Ground Lease.
Section 3.5 Membership. The individual owners of each Home shall automatically be
members of the Association. Membership in the Association only terminates when such
individuals no longer own a Home. Membership is appurtenant to and may not be separated from
ownership of a Home. Owners covenant and agree that the Property shall be managed in
compliance with this Declaration, the Association Ground Lease, each individual Ground Lease,
the Articles and Bylaws of the Association and any rules and regulations of the Association. The
Articles and Bylaws provide that the affairs of the Association shall be managed by a Board.
Section 3.6 Voting . There shall be one voting owner or agent for each Home. Such voting
owner or agent shall be designated by the owner or owners of a Home by written notice signed by
each party with an ownership interest, which notice shall be filed with the Secretary of the Board. The
voting agent need not be an owner. Any designation of voting owner or agent may be revoked at any
time by any one of the parties with an ownership interest in the Home on written notice filed with the
Secretary of the Board. Such designation shall be deemed revoked when the Secretary receives actual
notice of the death or judicially declared incompetency of the owner of the Home, or of the
conveyance of such ownership interest. When no designation is made, or where designation has been
made and revoked and no new designation has been made, the voting owner shall be the person or
group composed of all owners of that Home who attend any meeting of the Association; however,
votes may not be split by multiple owners of a Home. Thus, if multiple owners cannot agree on a
vote, their vote will not be counted on a vote of the Association membership, even though those
owners may be counted for purposes of a quorum (as if abstaining). As used in this Declaration, the
term “total voting power” shall mean the total number of votes, as described above, which may be
exercised at the time the vote is taken.
Section 3.7 Transfer of Membership. The membership in the Association of each
Owner (including Declarant) shall be appurtenant to the Home giving rise to such membership,
and shall not be transferred in any way except upon the transfer of title to the Home, and then only
to the transferee of title to the Home. Any attempt to make a prohibited transfer shall be void.
Any transfer of title to a Home shall operate automatically to transfer the membership in the
Association to the new Owner.
Section 3.8 Books and Records. The Board shall cause to be kept complete, detailed,
and accurate books and records of the receipts and expenditures of the Association, in a form that
complies with standard accounting principles. The Board or a majority of the Owners may at any
time require an annual audit prepared by an independent certified public accountant which shall
be paid for by the Association.
Section 3.9 Inspection of Association Documents, Books, and Records. During normal
business hours or under other reasonable circumstances, the Association shall have available for
inspection by Owners, the Ground Lessor, prospective purchasers, and holders, insurers, or
guarantors of any first mortgage, current copies of the Declaration, Articles of Incorporation,
Bylaws, the most recent financial statements including delinquency reports, meeting agendas and
minutes, and all rules and regulations governing the Association. The Ground Lessor and any
Owner, holder, insurer, or guarantor shall, upon written request and without charge, be entitled to
an audited financial statement, if required under the Act, for the preceding year. If there is no
audited statement available, the Ground Lessor and any Owner, holder, insurer, or guarantor may
have an audited statement prepared at the Ground Lessor’s, Owner’s, holder’s, insurer’s, or
guarantor’s expense. The statement shall be furnished within a reasonable time following the
request. An annual audit prepared by a certified public accountant is required if the annual
assessment of the Association equals or exceeds fifty thousand dollars ($50,000). If the annual
assessment of the Association is less than fifty thousand dollars ($50,000), an annual audit is also
required but may be waived annually by Owners (other than the Declarant) holding a majority of
the votes in the Association. “Available” shall mean available for inspection upon request, during
normal business hours or under other reasonable circumstances. The Association may require the
requesting party to pay a reasonable charge to pay the cost of making the copies. The dollar
amounts in this Section shall be subject to adjustment in the manner provided in RCW 64.90.065.
Section 3.10 Notice to Ground Lessor/Meeting Attendance. The Association shall give
written notice to the Ground Lessor if any Owner of a Home has for more than 60 days failed to
meet any obligation under this Declaration including payment of Association assessments or fees.
Ground Lessor may attend any meeting of the Association or the Board and designate a
representative for such purposes. The Board shall give the Ground Lessor no less than (10) days’
prior written notice of all meetings of the Board or the Association. Such notice shall include
copies of the meeting agenda and all supporting documentation for the matters under consideration
(draft budgets, assessment delinquency reports, bids for proposed work, contracts, minutes to
approve, etc.).
ARTICLE 4
MANAGEMENT OF THE ASSOCIATION
Section 4.1 Administration of the Property. The Owners
covenant and agree that the administration of the Property shall be in accordance with the
provisions of this Declaration and the Bylaws of the Association which are made a part hereof.
Administrative power and authority shall be vested in the Board.
Section 4.2 Authority and Duties of the Board. On behalf of and
acting for the Association, the Board, for the benefit of the Property and the Owners, shall have all
powers and authority permitted to the Board under this Declaration including, but not limited to,
the following:
4.2.1 Levy, collect, and enforce the collection of, Assessments, as more
particularly set forth in Article 7 hereof, to defray expenses attributable to carrying out the duties
and functions of the Association hereunder.
4.2.2 Require any officer of the Association handling or responsible for
Association funds to furnish adequate fidelity insurance, the premiums for which shall be paid by
the Association.
4.2.3 Impose and collect charges for late payment of Assessments as further
provided in Section 7.9 and in accordance with such procedures as provided in this Declaration,
the Bylaws, or rules and regulations adopted by the Board, levy reasonable fines in accordance
with a previously established schedule thereof adopted by the Board and furnished to the Owners
for violations of this Declaration, the Bylaws, and rules and regulations of the Association.
4.2.4 Enter into agreements with one or more qualified persons to assist it in
carrying out its obligations under this Declaration, collecting Assessments, sending notices to
Members, operating Association meetings, and other regular activities of the Association.
4.2.5 Contract and pay for any materials, supplies, labor or services which the
Board should determine are necessary or proper for carrying out its powers and duties under this
Declaration, including legal, accounting, management, utilities or other services.
4.2.6 All checks, drafts, or other orders for the payment of money, notes, or other
evidences of indebtedness in the name of the Association shall be signed by such officer or officers,
agent or agents of the Association and in such manner as is from time to time determined by the
Board.
Section 4.3 Adoption of rules and regulations. When and to the
extent it deems advisable, the Board may adopt reasonable rules and regulations governing the
operation, maintenance or use of the Common Area, Lots and Homes and other matters of mutual
concern to the Members, which rules and regulations shall be consistent with this Declaration and
the Bylaws and which treat all Members fairly and in a non-discriminatory manner.
Section 4.4 Additional Powers of the Association. In addition to
the duties and powers of the Association, as specified herein and elsewhere in this Declaration, but
subject to the provisions of this Declaration, the Association, acting through its Board, shall have
the power to do all other things which may be deemed reasonably necessary to carry out its duties
and the purpose of this Declaration.
Section 4.5 Professional Management. If required by the Ground Lessor, the
Board of the Association shall enter into a contract for professional management of the Property,
subject to the prior written consent of the Ground Lessor as to the management company and the form
of contract. The maximum term of such contract shall not exceed one (1) year, and the contract shall
be terminable without cause on thirty (30) days written notice; provided that any such termination by
the Association shall require the prior written consent of the Ground Lessor.
ARTICLE 5
INSPECTION RIGHTS
The Association shall have the right, but not the obligation, to conduct inspections and tests
from time to time of all or any parts of the Common Areas in order to ascertain the physical
condition of the improvements and to determine whether maintenance, repairs or replacements of
any such improvements are indicated. The Association shall have the right to make such repairs
at it deems appropriate and such rights of entry on, over, under, across and through the Lots as
may be reasonably necessary to exercise the rights described in this Section. The Association shall
provide reasonable advance notice to Owners of inspections and repairs.
ARTICLE 6
USE RESTRICTIONS AND MAINTENANCE OBLIGATIONS
Section 6.1 Maintenance of Homes and Lots.
6.1.1 Association Responsibility. The Association shall be responsible for
maintenance, repair and replacement of the Common Areas. The costs relating thereto shall be
allocated in accordance with Section 2.4.1 above.
6.1.2 Owner Responsibility; Association Right to Repair at Owner Cost. Except
as otherwise provided in this Declaration, each Owner, at the Owner’s cost and expense, shall
promptly and continuously maintain, repair, replace and restore all interiors and exteriors of their
Home and other portions of the Owner’s Lot, in a sound, good, clean, attractive, safe and sanitary
condition and in full compliance with all applicable laws, the provisions of this Declaration, any
rules and regulations of the Association, and the applicable Ground Lease. If any Owner fails to
maintain, repair, replace or restore their Home and Lot after written request from the Board and a
reasonable opportunity to do so, the Association may maintain, repair, replace or restore such items
or areas at the Owner’s expense. The Association shall levy a special Assessment against the
Owner for all such expenses. The Association shall have the irrevocable right, to be exercised by
the Board and its agents, to access each Home and Lot from time to time during reasonable hours
as may be necessary for the maintenance, repair or replacement of Common Areas accessible
therefrom or for making emergency repairs therein necessary to prevent damage to the Common
Areas, or to do any cleaning, maintenance, repair and replacement work which the Owner is
required to do but has failed or refused to do. In addition, either Habitat or Ground Lessor may do
so and charge the defaulting Owner the cost of such work as additional rent or stewardship fee
under the Ground Lease or any applicable permanent affordability restrictive covenant signed by
Owner. An easement over the Property for performance of the work contemplated under this
Section is hereby reserved in favor of the Association, Habitat, and the Ground Lessor, which
easement shall run with the land and bind all current and future Owners of the Property.
Reimbursement of maintenance, repair, or replacement costs under this Section shall be
paid within thirty (30) days of the written request of the Association, Habitat and/or the Ground
Lessor, as applicable, provided, if agreed in writing by the entity incurring the cost, (i) in equal
installments over a period of time, or (ii) upon sale of the Home consistent with the procedure for
payment of deferred maintenance costs otherwise applicable to Owner under the Ground Lease or
restrictive covenant signed by Owner when it acquired the Home. Any maintenance, repair, or
replacement costs that are not paid within thirty days of request shall accrue interest at a rate of
10% per annum or such lesser rate allowed by law until paid in full. Owner’s reimbursement
obligation to Habitat and the Ground Lessor under this Section is secured by any and all deeds of
trust granted by Owner for the benefit of Habitat or Ground Lessor and shall remain a personal
obligation of such Owner regardless of any subsequent sale of the Home.
Section 6.2 Parking. Each Home will be assigned one stall
within the Common Area Tract to park an operational motor vehicle. Unassigned parking spaces
within the Common Area Tract and public parking spaces on the street may be used on an as-
available basis and consistent with applicable ordinances. Parking shall not block or interfere with
use of any alley, driveway, sidewalks, public rights of way, or fire lanes. Violations of this Section
shall subject such vehicles to impound by the Association, at the expense and risk of the owner
thereof.
Section 6.3 Sidewalks and Entryways. Entryways located on
each Lot shall be maintained by the Owner of the Home located on that Lot. Shared sidewalks
shall be maintained by the Association as a Common Area with costs shared equally among all
Homes. Each sidewalk and entryway shall be used exclusively for normal access, ingress and
egress. No obstructions shall be placed within Common Areas including shared sidewalks. The
Association shall be solely responsible for maintenance of shared sidewalks (including those
located within a public right of way) in a condition that is fit and safe for purposes of public travel
and is free of any obstructions or defects including but not limited to snow, ice, and mud.
Section 6.4 Residential Use/Primary Residence. Subject to
Section 6.7 below, all Homes shall be used only as single family residences and as the sole primary
residence of the Owner(s) of each Home and such Owner’s immediate family, except as otherwise
authorized by Ground Lessor.
Section 6.5 Lease Restrictions/Timesharing Prohibited. Short
term vacation rentals (such as VRBO or AIRBNB) and time sharing of the Homes and/or any Lot
is strictly prohibited. Longer term residential tenancies of a portion of a Home coincident with an
Owner’s occupancy of that Home as their primary residence are allowed only with the prior written
approval of Ground Lessor, which may be given or denied in its sole and absolute discretion.
Section 6.6 Prohibited Activities. No illegal activity, excessive
noise or activity which interferes with or jeopardizes any other Owner’s use and enjoyment of their
Lot or their Home shall be carried on.
Section 6.7 Businesses. To preserve the residential character
of the neighborhood, no Owner or member of the Owner's household shall be allowed to conduct
any business on a Lot or within a Home which creates a nuisance or unreasonably interferes with
the privacy and peaceful enjoyment of other Owners.
Section 6.8 Animals and Pets. Owners shall observe and obey
all applicable laws and codes applicable to the care and control of pets. Pets may not be kept, bred,
or maintained for any commercial purpose, and shall not endanger the health or unreasonably
disturb the Owners or occupants of other dwelling units, and shall not create a nuisance. Owners
shall not allow dogs to run at large, and shall promptly clean-up and dispose of any droppings or
waste from their pet(s). No farm animals, livestock or poultry of any kind shall be raised, bred or
kept on the Property or within any Home. The Association may adopt additional rules regarding
the keeping of pets.
Section 6.9 Outdoor Fires. Outdoor barbecues may be used for
cooking on Lots when permitted by law. Reasonable and adequate precautions against fires must
be taken. Excessive smoke or soot accumulation from fires is not allowed. No outdoor fires are
allowed on any Lot unless contained within a small fire pit that is sold or constructed for that
specific purpose and located no less than five (5) feet from any Home. No grills are allowed on
covered porches.
Section 6.10 Landscaping and Street Trees.
6.10.1 The Association shall maintain and water trees and vegetation
planted in the Common Area Tract. All costs related thereto shall be a Common Expense paid by
the Association and shared equally among all Owners. An easement is hereby reserved in favor
of the Association for the purpose of accessing, maintaining, and using the watering system to
comply with its obligations under the Plan.
6.10.2 Each Owner shall maintain and water all landscaping and trees
installed on their Lot. All costs related thereto shall be borne by the Owner. Landscaping shall be
kept neatly mowed and weeded. Any noxious weeds and dead plants shall be promptly removed
and replaced.
6.10.3 The Association shall maintain street trees to ensure unobstructed
emergency vehicle access. Healthy trees abutting the right of way shall be retained and selectively
limbed but not topped.
Section 6.11 Fences. Owners shall abide by all applicable height
restrictions and fencing ordinances and laws applicable to the Property. No fence shall be
constructed on any Lot without the prior written approval of the Board, which may be granted or
denied in its sole discretion. If approved, the Owner requesting permission to build the fence shall
maintain and keep it in good repair, at its own cost.
Section 6.12 Exteriors. Habitat designed the Homes and
landscaping to be harmonious, compatible, and complementary to each other. Ground Lessor may
prohibit, require or regulate any exterior modification or decoration of the Homes or Lots. In order
to preserve a uniform external appearance, Ground Lessor has adopted a uniform palette of exterior
colors that must be maintained. Exterior colors of each dwelling unit and exterior improvements
(fences, etc.) are not subject to change. The approved palette extends to all exterior portions of a
dwelling unit.
Section 6.13 Easement for Common Areas. Declarant hereby reserves and
declares for the benefit of each Home and the Association, in perpetuity, an easement over each
Lot for the use, maintenance, repair and replacement of the Common Areas, together with the right
of entry on each Lot after reasonable notice to perform such work. The Association may collect
assessments for the maintenance of any Common Areas and any amounts not so paid shall become
a lien on the Home of the defaulting Owner in accordance with the provisions of RCW 64.90.485.
Section 6.14 Community Mailbox. An easement is hereby reserved over the
Property, as necessary, for Owners and the Association to access and use any community mailbox
serving the Property. All Owners shall share equally in the cost to maintain, repair, rebuild, and
replace any community mailbox through an assessment levied by the Association.
Section 6.15 Window Coverings. Non-traditional or alternative window
coverings such as, but not limited to, blankets, sheets, cardboard, towels, posters, etc. are
prohibited on a Lot or within a Home, whether temporary or permanent. Owners shall not replace
the screens in the windows or doors of the Homes except with materials of similar color and quality
to those originally installed.
Section 6.16 Antennae. All satellite dishes, television antennas, and other
communication devices must be permanently attached to the Homes they serve. They shall not
project above the highest point of the roof.
Section 6.17 Rubbish, Trash, and Garbage. No Lot or Home shall be used or
maintained for the dumping of rubbish. The Owner of each Home shall ensure that all rubbish,
trash, and garbage is regularly removed and placed in the appropriate trash and recycling
receptacles located in the Common Area Tract and is not allowed to accumulate within the Home
or Lot. No trash, rubbish, and garbage shall be accumulated outside of a Home, including any
deck, porch, balcony, patio or driveway. Trash, rubbish, and garbage shall be placed in approved
receptacles and shall be placed at designated times in designated locations within the neighborhood
for pick up by the municipality. No garbage shall be disposed of by burning. All trash collection
devices, rubbish containers, recycling containers or composting bins shall be returned to the
designated storage area within the Common Area Tract on the day of collection. Owners shall
adequately secure them after use to prevent bird, animal, rodent or insect attractions or infestation.
Section 6.18 Use and Disposal of Hazardous Substances. Owners shall comply
with all state, federal, and local laws and regulations governing or in any way relating to the
handling, storage, use, dumping, discharge, or disposal of any hazardous substance or material on
their Lot, in their Home, and on the Property. Owners shall not dispose of or discharge any
hazardous substance or materials within the Home or on any Lot, Common Area, public street, or
any other area located within or adjacent to the Property.
Section 6.19 Prohibited Structures, Trailers, Vehicles and Boats. No outbuilding
shall be constructed on, moved to, or located on any Lot without the prior written consent of
Ground Lessor. In addition, no recreational vehicles or inoperable and/or unregistered vehicles
(including boats and boat trailers) will be permitted on any Lot, or parked or stored on the any
Common Area or street. No structure of a temporary character, such as a trailer, tent, garage, barn
or other outbuildings shall be used on any Lot at any time as a dwelling unit, or for other habitable
purpose, either temporarily or permanently. Storage sheds and play structures are permitted
provided the design, materials, and finish is consistent with the Homes, and the construction
complies with all governmental rules, such as setback requirements and obtaining the necessary
permit from the applicable local jurisdiction. All structures, including storage sheds, shall be
equipped with a door adequate to prevent their contents from being visible and be kept closed
except when in use.
Section 6.20 Equipment. All mechanical equipment, such as fuel storage tanks
(except solar collectors), propane tanks, and heat pumps larger than 40” w x 40” h x 15” shall be
screened so as not to be visible from any public right-of-way, unless otherwise approved by
Ground Lessor in writing. No window air conditioning units may be installed in any Home.
Section 6.21 Unsightly or Unkempt Conditions. The accumulation of items,
materials, and other objects on any Lot or the Home (including any porches or patios), and
overgrown landscaping or other conditions that may create a nuisance, are not allowed.
Section 6.22 Right of Way Improvements. Any right of way or alley
improvements constructed or installed by Habitat in connection with the development of the
Property shall be maintained by the Association, unless ownership of such improvements has been
transferred to a governmental entity. The costs to do so shall be shared equally by all Owners. If
the Association fails to maintain, repair, or replace those improvements and/or to perform any
other work required by applicable governmental entity, the Ground Lessor reserves the right to do
so and charge each Owner a proportionate share of such costs as an additional fee due under the
Ground Lease.
Section 6.23 Addition, Alteration or Improvement by Home Owner. A Home
Owner may not make any improvements or alterations to the Owner’s Home without the prior
written approval of the Board and the Ground Lessor. In no event will any improvements or
alterations be made that (i) affect the structural integrity or mechanical or electrical systems or
lessen the support of any portion of the Home, (ii) change the appearance of the Common Areas
or the exterior appearance of a Home, or (iii) are not in accordance with the provisions of the
applicable Ground Lease. The Board and the Ground Lessor shall have the obligation to answer
any written request by the Owner, which request shall include, the proposed work plans and
specifications within thirty (30) days after such request. Failure to do so within the stipulated time
shall constitute a consent by the Board or the Ground Lessor, as the case may be, to the proposed
addition, alteration or improvement.
ARTICLE 7
ASSESSMENTS
Section 7.1 Creation of the Lien and Personal Obligation of
Assessments. Each Owner is deemed to covenant and agree to pay to Association any Assessment
duly levied by the Association as provided herein. Such Assessments, together with interest, costs,
late charges and reasonable attorneys’ fees, shall be a charge on the Owner’s Home and a
continuing lien upon the leasehold interest of the Owner (or on the Lot and Home if sold in fee
simple). 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 the Home
at the time when the Assessment fell due. The personal obligation for delinquent Assessments
shall not pass to his successor in title unless the lien for such delinquent Assessments had been
properly recorded prior to title transfer or unless expressly assumed by that party. Common
Expenses shall include:
(1) all common expenses defined in the Act;
(2) the cost of all insurance policies maintained by the Association;
(3) all charges for utilities used in connection with maintaining any
Common Area including without limitation, any shared irrigation and lighting systems, and all
charges for utilities for individual Homes which costs, if not separately metered, shall be paid to
the utility provider by the Association and submetered by the Association through a third party
billing provider for allocation to and collection from individual Home Owners based on usage;
(4) the cost of repair or replacement of any portion of the Property
covered by insurance in excess of the insurance proceeds and reserves.
(5) the costs of all maintenance and repair obligations of the Association
including the cost of maintaining the Common Areas, unless otherwise assessed to specific Owners
under Section 6.13;
(6) any taxes, assessments, fees and any other charges levied on the land
by Jefferson County or any other governmental entity;
(7) any shared expenses not defined in the Act, nor listed above, but
which are approved by the Board as Common Expenses;
(8) reserves in an amount determined by the Board and otherwise
acceptable to the Ground Lessor; and
(9) all other amounts the Board may deem necessary or advisable for
the lawful exercise of its powers and duties.
Notwithstanding the foregoing,
(10) any Common Expense associated with the operation, maintenance,
repair, or replacement of a Common Area shall be paid by the Owner causing the need for such
Common Expense, to the extent the maintenance, repair, or replacement of the Common Area
results from unusual or abnormal wear and tear caused by such Owner;
(11) assessments to pay a judgment against the Association may be made
only against the Homes at the time the judgment was entered in proportion to their allocated
Common Expense Liability at the time the judgment was entered;
(12) to the extent that any Common Expenses are caused by the
misconduct of any Owner, the Association may assess that expense against the Owner’s Home;
and
(13) each Owner is responsible to pay all sewer capacity charges and
similar assessments applicable to their Home for new sewer connections including any monthly
sewer capacity charges payable over time and commencing at the time of the original connection.
The Board shall at all times act to insure that Assessments are sufficient to maintain the Common
Area in a condition which is safe, attractive in appearance and structurally sound. The Board shall
set monthly Assessments to include sufficient reserves as necessary for projected maintenance and
capital improvement requirements, in order to minimize the need to impose special Assessments
on the Owners.
Section 7.2 Liability for Assessments. Any Assessments which
may be levied from time to time pursuant to the authority of the Board shall be established in
accordance with this Article, except for Assessments levied against an Owner for the purpose of
reimbursing the Association for costs incurred in bringing the Owner or their Home or Lot into
compliance with the provisions of this Declaration. Common Expenses shall be allocated among
Lots in accordance with Section 2.1 above; provided, however, Declarant shall not be obligated to
pay any Assessment levied against any Lots owned by it unless a Home has been constructed on
the Lot and the Home is occupied. No Owner may exempt themselves from liability for their
Assessments by abandoning their Home.
Section 7.3 Association Budgets. The initial budget for the
Association shall be adopted by Declarant, which shall be based on a total development consisting
of the Approved Number of Homes with Common Area according to Declarant’s current plans.
Subsequent budgets shall be prepared by the Board, subject to ratification by the members of the
Association as provided below. The budgets shall set forth sums required by the Association for
the completed development, as estimated by the Board, to meet its annual costs for Common
Expenses, including a reasonable sum for reserves for future major repairs and replacements for
which the Association is responsible, which amount shall be no less than eighty percent (80%) of
the amount recommended for reserves in the most recent reserve study obtained (or required to be
obtained) by the Association under RCW 64.90.545. This Section shall not be amended without
the prior written consent of the Ground Lessor.
Section 7.4 Ratification of Budget. Within 30 days after
adoption of any proposed budget for the Association after the initial budget adopted by Declarant,
the Board shall provide a summary of the budget to all the Owners and shall set a date for a meeting
of the Owners to consider ratification of the budget not less than 14 days nor more than 50 days
after mailing of the summary. Unless at that meeting the Owners to which a majority of the votes
in the Association are allocated reject the budget, the budget is ratified, whether or not a quorum
is present. In the event the proposed budget is rejected or the required notice is not given, the
periodic budget last ratified by the Owners shall be continued until such time as the Owners ratify
a subsequent budget proposed by the Board.
Section 7.5 Supplemental Budget. If during the year the budget
proves to be inadequate for any reason, including nonpayment of any Owner’s Assessments, the
Board may prepare a supplemental budget for the remainder of the year. A supplemental budget
shall be subject to ratification by the Owners pursuant to Section 7.4.
Section 7.6 Levy of Assessments. In order to meet the costs
projected in its operating budget, the Board shall determine and levy on every Owner of a
completed Home (other than Declarant unless the Home is occupied) a general Assessment for
Common Expenses. The Association’s operating budget for Common Expenses shall be allocated
equally among the Owners, except for expenses related to Common Areas serving fewer than the
Approved Number of Lots which shall be allocated solely to the Owners served by those Common
Areas (e.g. shared side sewers or pathways). The regular Assessments provided for herein shall
commence as to all completed Homes (Homes to which certificates of occupancy have been issued
by the local governmental authorities) on the making of an Assessment by the Association, or
within sixty (60) days after the date of conveyance of the first Home, whichever is later.
Section 7.7 Amount of General Assessments. The Board shall
make reasonable efforts to determine the amount of the general Assessments payable by each
Owner for an Assessment period at least 30 days in advance of beginning of such period. Notice
of the general Assessments shall thereupon be sent to each Owner subject to Assessments;
provided, however, that failure to notify an Owner of the amount of an Assessment shall not render
such Assessment void or invalid. Any failure by the Board, before the expiration of any
Assessment period, to fix the amount of the general Assessments hereunder for the next period,
shall not be deemed a waiver or modification in any respect of the provisions of this Article or a
release of any Owner from the obligation to pay the general Assessments, or any installment
thereof, for that or any subsequent Assessment period.
Section 7.8 Assessment Period. The general Assessments fixed
for the preceding period shall continue until new Assessments are fixed. Upon any revision by the
Association of the operating budget during the Assessment period for which each budget was
prepared, the Board shall, if necessary, revise the general Assessments levied against the Owners
and give notice of the same in the same manner as the initial levy of a general Assessments for the
Assessment period.
Section 7.9 Manner and Time of Payment; Late Charges.
Assessments shall be payable in such reasonable manner as the Board shall designate. The
Association may from time to time establish reasonable late charges and a rate of interest to be
charged on all subsequent delinquent Assessments or installments thereof. Delinquent
Assessments shall bear interest from the date of delinquency at the rate of five percent (5%) or the
highest rate per annum allowed by law on the date on which the Assessments became delinquent,
whichever is lower.
Section 7.10 Initial Contribution to Reserve Funds. In connection
with the closing of the sale of each Home, if required by Declarant, the purchaser thereof shall pay
to the Association, as a nonrefundable contribution, (i) an operating reserve fund contribution in
the amount determined by the Declarant, which amount shall not be considered as an advance
payment of regular Assessments, and (ii) a capital reserve fund contribution for future capital
improvements needed for the Property. Declarant shall not use any of the operating reserve fund
or the capital reserve fund to defray any of its expenses for development of the Property.
Section 7.11 Accounts. Any Assessments collected by the
Association shall be deposited in one or more Federally insured institutional depository accounts
established by the Board. The Board shall have exclusive control of such accounts and shall
maintain accurate records thereof. No withdrawal shall be made from said accounts except to pay
for charges and expenses authorized by this Declaration.
Section 7.12 Liens for Assessments.
7.12.1 Rights of Association. The Association has a lien on a Home for
any unpaid Assessments levied against a Home from the time the Assessment is due, together with
interest, late charges, and attorneys’ fees as provided in this Declaration.
7.12.2 Priority/Exceptions. A lien under this Section shall be prior to all
other liens and encumbrances on a Home except: (a) liens and encumbrances recorded before the
recording of the Declaration; (b) a mortgage or deed of trust on the Home recorded before the date
on which the Assessment sought to be enforced became delinquent; and, (c) liens for real property
taxes and other governmental assessments or charges against the Home or Lot.
7.12.3 Priority/Mortgages. Except as provided in subsections 7.12.4 and
7.12.5 below, the lien shall also be prior to mortgages to the extent of Assessments for Common
Expenses, excluding any amounts for capital improvements, based on the periodic budget adopted
by the Association pursuant to the Act which would have become due during the six (6) months
immediately preceding the date of a sheriff’s sale in an action for judicial foreclosure by either the
Association or a Mortgagee, the date of a trustee’s sale in a nonjudicial foreclosure by a Mortgagee,
or the date of recording of the declaration of forfeiture in a proceeding by the seller/vendor under
a real estate contract.
7.12.4 Reduction of Priority Period. The priority of the Association’s lien
against Homes encumbered by a mortgage held by a Mortgagee or by a Mortgagee which has
given the Association a written request for a notice of delinquent Assessments shall be reduced by
up to three (3) months if and to the extent that the lien priority under subsection 7.12.3 of this
Section includes delinquencies which relate to a period after such Mortgagee becomes an
Mortgagee or has given such notice and before the Association gives the Mortgagee a written
notice of the delinquency. This subsection does not affect the priority of mechanics’ or
materialman’s liens, or the priority of liens for other Assessments made by the Association.
7.12.5 Priority/Nonjudicial Foreclosure. If the Association forecloses its
lien under this Section nonjudicially pursuant to RCW Chapter 61.24, as provided by subsection
7.12.8 below, the Association shall not be entitled to the lien priority provided for under subsection
7.12.3 of this Section.
7.12.6 Notice and Perfection. Recording the Declaration constitutes record
notice and perfection of the lien for Assessments. While no further recording of any claim of lien
for Assessments under this Section shall be required to perfect the Association’s lien, the
Association may record a notice of claim of lien for Assessments under this Section with the
Jefferson County Auditor. Such recording shall not constitute the written notice of delinquency to
a Mortgagee referred to in subsection 7.12.2 above.
7.12.7 Three Year Time Limit. A lien for unpaid Assessments and the
personal liability for payment of Assessments is extinguished unless proceedings to enforce the
lien or collect the debt are instituted within three (3) years after the amount of the Assessments
sought to be recovered becomes due.
7.12.8 Foreclosure Options. The lien arising under this Section may be
enforced judicially by the Association or its authorized representative in the manner set forth in
RCW Chapter 61.12. The lien arising under this Section may also be enforced nonjudicially in the
manner set forth in RCW Chapter 61.24 for nonjudicial foreclosure of deeds of trust. The
Declarant hereby grants to First American Title Company of Jefferson County (the “Title
Company”) whose address is 2424 S Park Avenue, Port Townsend, WA 98368, as Trustee, with
power of sale, for the purpose of foreclosing on any Home or Lot. The Property is not used
principally for agricultural or farming purposes. This grant is for the sole purpose of securing the
obligations of the Owners to the Association for the payment of Assessments. The Title Company,
or its successor, shall act as Trustee for the benefit of the Association, as beneficiary. On default
by any Owner in the payment of the Assessments, the power of sale shall be operative and on the
written request of the beneficiary, Trustee shall sell the trust property in accordance with the Deed
of Trust Act of the State of Washington at a public auction to the highest bidder. Subject to the
superior purchase option granted to the Ground Lessor under the applicable Ground Lease, any
person, including the Association or its authorized representative, shall have the power to purchase
the Home at the foreclosure sale and to acquire, hold, lease, mortgage, or convey the same subject
to the restrictions in the underlying Ground Lease, except that the Trustee may not bid at the
Trustee’s sale. The Trustee shall apply the proceeds of the sale as follows: (1) to the expense of
the sale, including a reasonable Trustee’s fee and attorneys’ fees and costs; (2) to the obligation
owed by the defaulting Owner; and, (3) the surplus, if any, to those entitled to such proceeds under
applicable law and subject to the restrictions and requirements of the applicable Ground Lease.
On an express waiver in the complaint of any right to a deficiency judgment in a judicial
foreclosure action, the period of redemption shall be eight (8) months. Nothing in this Section
shall prohibit an Association from taking a deed in lieu of foreclosure. This power of sale is not
an exclusive remedy; the Association may pursue any other remedy available under the terms of
the Declaration or at law.
7.12.9 Assessments/Foreclosure. Except as provided in subsection 7.12.3
above, a Mortgagee or other purchaser of a Home who obtains the right of possession of the Home
through foreclosure of a mortgage shall not be liable for Assessments or installments thereof that
became due prior to such right of possession. Such unpaid Assessments shall be deemed to be
Common Expenses collectible from all the Owners, including such Mortgagee or other purchaser
of the Home. Foreclosure of a mortgage does not relieve the prior owner of personal liability for
Assessments accruing against the Home prior to the date of such sale as provided in this subsection.
7.12.10 Joint and Several Liability. In addition to constituting a lien on the
Home, each Assessment shall be the joint and several obligation of the Owner or Owners of the
Home to which the same is assessed as of the time the Assessment is due. In a voluntary
conveyance, the grantee of a Home shall be jointly and severally liable with the grantor for all
unpaid Assessments against the grantor up to the time of the grantor’s conveyance, without
prejudice to the grantee’s right to recover from the grantor the amounts paid by the grantee
therefor. Suit to recover a personal judgment for any delinquent Assessment shall be maintainable
in any court of competent jurisdiction without foreclosing or waiving the lien curing such sums.
7.12.11 Attorney Fees. The Association shall be entitled to recover any
costs and reasonable attorneys’ fees incurred in connection with the collection of delinquent
Assessments, whether or not such collection activities result in suit being commenced or
prosecuted to judgment. In addition, the Association shall be entitled to recover costs and
reasonable attorneys’ fees if it prevails on appeal and in the enforcement of a judgment.
7.12.12 Assessment Statements. The Association on written request shall
furnish to an Owner, Mortgagee, and Ground Lessor a statement signed by an officer or authorized
agent of the Association setting forth the amount of unpaid Assessments against that Home. The
statement shall be furnished within fifteen (15) days after receipt of the request from any Owner
or the Association or Ground Lessor (or earlier if required by applicable law) and shall be binding
on the Association, the Board, and every Owner, unless and to the extent known by the recipient
to be false.
7.12.13 Remedies Cumulative. The remedies provided are cumulative, and
the Board may pursue them concurrently, as well as any other remedies which may be available
under law although not expressed herein.
7.12.14 Conveyance, Liability of Grantor and Grantee for Unpaid Common
Expenses. In a voluntary conveyance, the grantee of a Home shall be jointly and severally liable
with the grantor for all unpaid Assessments against the latter for grantor’s share of the Common
Expenses up to the time of grantor’s conveyance, without prejudice to the grantee’s right to recover
from the grantor the amounts paid by the grantee therefor. Any such grantee shall be entitled to a
statement from the Board setting forth the amount of the unpaid Assessments against the grantor;
and such grantee shall not be liable for, nor shall the Home conveyed be subject to a lien for, any
unpaid Assessments against the grantor in excess of the amount therein set forth in the Board’s
statement.
Section 7.13 Waiver of Homestead. Under RCW 6.13.080(6), no
Owner is entitled to a homestead exemption if the Association forecloses on a lien for unpaid
Assessments. Each Owner acknowledges and agrees that it is not entitled to assert a homestead
exemption in the case of such foreclosure. For avoidance of doubt, each Owner hereby waives,
the benefit of any homestead or other exemption law in effect at the time any Assessment or
installment thereof become delinquent or any lien is imposed pursuant to the terms hereof.
Section 7.14 Special Assessments. For those Common Expenses
which cannot reasonably be calculated and paid on a monthly basis, the Board may levy special
Assessments for such expenses against the Owners on the same basis as general Assessments for
such expenses. To the extent that any Common Expense is caused by the misconduct of an Owner
or tenant of any Home, the Association may levy a special Assessment for the expense against the
Owner of the Home.
Section 7.15 Records. The Board shall cause detailed and
accurate records of the receipts and expenditures of the Association to be kept specifying and
itemizing the maintenance, operating, and any other expense incurred. Such records, copies of this
Declaration, the Articles and the Bylaws, and any resolutions authorizing expenditures of
Association funds shall be available for examination by any Owner at convenient weekday hours.
Section 7.16 Certificate of Assessment. A certificate executed and
acknowledged by the treasurer or the president of the Board (or an authorized agent thereof, if
neither the president nor treasurer is available) stating the indebtedness for Assessments and
charges or lack thereof secured by the Assessments upon any Home shall be conclusive upon the
Association as to the amount of such indebtedness on the date of the certificate, in favor of all
persons who rely thereon in good faith. Such a certificate shall be furnished to any Owner or any
Mortgagee within a reasonable time after request, in recordable form, at a reasonable fee.
Section 7.17 Curing of Default; Satisfaction and Release of Lien.
The Board shall prepare and record a satisfaction and release of the lien for which a notice of
Assessment has been filed and recorded in accordance with this Article upon timely payment or
other satisfaction of all delinquent Assessments set forth in the notice and all other Assessments
which have become due and payable following the date of such recordation with respect to the Lot
or Home to which such notice of Assessment was recorded, together with all costs, late charges
and interest which have accrued thereon. The satisfaction and release of the lien created by the
notice of Assessment shall be executed by the president or treasurer of the Association or by any
authorized representative of the Board.
ARTICLE 8
INSURANCE
Section 8.1 General Requirements. The Association shall
maintain a policy or policies and bonds necessary to provide (a) property insurance,
(b) commercial general liability insurance, (c) fidelity insurance, (d) directors and officers
liability insurance, and (e) such other insurance as the Board deems advisable. The Board shall
review at least annually the adequacy of the Association’s insurance coverage. All insurance shall
be obtained from insurance carriers that are generally acceptable for similar projects, authorized
to do business in the state of Washington, and meet the specific requirements of the Federal
National Mortgage Association (“FNMA”) regarding the qualifications of insurance carriers.
Notwithstanding any other provisions herein, the Association shall continuously maintain in effect
insurance that meet the insurance requirements for similar projects established by FNMA so long
as any of them is a holder of a mortgage or Owner of a Home, except to the extent such coverage
is not available or has been waived in writing by them. All such insurance policies shall provide
that coverage may not be cancelled or substantially reduced without at least 30 days’ prior written
notice (10 days for cancellation for nonpayment of premium) to the Association as the first named
insured therein.
Section 8.2 Owner’s Property Insurance. Each Owner shall carry
property insurance for their Home and contents. The property insurance shall, at the minimum
and subject to such reasonable deductible as the Board may determine, provide All Risks of Direct
Physical Loss coverage in an amount equal to the full replacement cost of the Home and any
personal property of the Owner. The cost of property insurance for the Homes shall be an expense
of the Owner of such Home. The Owner’s policy shall provide a separate loss payable endorsement
in favor of the Mortgagee of such Home. Each Owner, the Owner’s Mortgagee, if any, and the
Ground Lessor, shall be beneficiaries of the policy in accordance with the Owner’s interest in the
Owner’s Lot and Home. Certificates of insurance shall be issued to each Owner, Mortgagee and
Ground Lessor upon request. Each Owner of a Home shall be responsible for damage or loss to or
within the Owner’s Home and/or Lot up to the amount of the deductible or for any amounts not
covered by the Owner’s insurance policy. The insurance shall include earthquake insurance if a
majority of the Board requires such coverage, and if such coverage is available at a reasonable cost.
Section 8.3 Commercial General Liability Insurance. The
Association’s liability insurance coverage shall insure the Association and the Board and cover the
Association’s responsibilities with respect to the Common Areas with a “Severability of Interest
Endorsement” or equivalent coverage which would preclude the insurer from denying the claim
of an Owner because of the negligent acts of the Association or of another Owner, and shall cover
liability of the insureds for property damage, bodily injury, and death of persons arising out of the
operation, maintenance, and use of the Common Areas, employers’ liability insurance, and such
other risks as are customarily covered with respect to residential projects and/or required under
any Ground Lease. Such insurance shall be not less than Two Million Dollars ($2,000,000) for each
single accident or occurrence and shall cover bodily injury, deaths of persons, and property damage,
including water damage.
Section 8.4 Named Insured. The named insured under the
policies referred to in Section 8.2 and Section 8.3 shall include the Ground Lessor.
Section 8.5 Additional Policy Provisions. The insurance
obtained pursuant to Section 8.2 and Section 8.3 shall contain the following provisions and
limitations:
8.5.1 Each Owner is an insured person under the policy with respect to
liability arising out of the Owner’s interest in the Owner’s Home or membership in the Association.
8.5.2 Coverage shall not be prejudiced by any act, omission, or neglect of
the Owners when such act or neglect is not within the scope of the Owner’s authority on behalf of
the Association.
8.5.3 A waiver of subrogation by the insurer as to any and all claims
against the Association, the Owner of any Home, and/or their respective agents, members of the
Owner’s household and of any defenses based upon co-insurance or upon invalidity arising from
the acts of the insured.
8.5.4 If, at the time of a loss under an Association policy, there is
insurance in the name of the Owner covering the same risk, the Owner’s policy provides primary
insurance.
Section 8.6 Fidelity Bonds. The Board shall maintain blanket
fidelity bonds, in an amount determined by the Board, for all officers, directors, trustees, management
agents, employees of the Association, and all other persons handling or responsible for funds of or
administered by the Association.
Section 8.7 Use of Insurance Proceeds. Any portion of the
Property for which insurance is required under this Article which is damaged or destroyed shall be
repaired or replaced promptly unless (a) the Declaration is terminated, or (b) repair or replacement
would be illegal under any state or local health or safety statute or ordinance. The insurance
proceeds not used for the purpose of repairing or rebuilding the Property shall be paid to the
Ground Lessor, the Owners, Mortgagees and lienholders as their interests may appear and as
required by the applicable Ground Lease and Mortgage.
Section 8.8 Indemnification of Ground Lessor and Habitat. The Association and
each Owner shall defend, indemnify and hold Ground Lessor and Habitat harmless from and
against all liability and claims of liability for damage or injury to person or property from any
cause on or about the Property. The Association and each Owner waive all claims against Ground
Lessor and Habitat for damage or injury to person or property on or about the Property arising or
asserted to have arisen on or about the Property from any cause whatsoever. Notwithstanding
anything to the contrary in the applicable Ground Lease and the directly preceding two sentences,
Ground Lessor shall remain liable (and the Association and Owners shall not indemnify and defend
Ground Lessor against nor waive such claims of liability) for damage or injury due to the gross
negligence or intentional acts of Ground Lessor or Ground Lessor’s agents or employees.
Section 8.9 Additional Insurance. The Board may require the Association to
carry such additional insurance that it deems appropriate to protect the Association and/or Owners.
Owners shall additionally carry insurance for their own benefit insuring their Homes and all
carpeting, wall coverings, fixtures, furniture, furnishings and other personal property. All such
policies shall contain waivers of subrogation, and the liability of the carriers issuing insurance
obtained by the Board shall not be affected or diminished by reason of any such additional
insurance carried by any Owner. The Board shall continuously maintain in effect such casualty,
flood, liability insurance, and fidelity bond meeting the insurance and fidelity bond requirements
established by a mortgage covering a Home within the project, whether or not such Mortgagee has
obtained a fee interest in a Home, by the Ground Lessor or its successor or assigns under the terms of
any Ground Lease, and/or by any governmental entities pursuant to the terms of any grant or
authorization for the term of such grant or authorization, except to the extent such coverage is not
available or has been waived in writing by such Mortgagee, the Ground Lessor and any such
governmental entity.
ARTICLE 9
COMPLIANCE AND ENFORCEMENT
Section 9.1 Enforcement.
9.1.1 Each Member shall comply strictly with the provisions of this
Declaration and with the Bylaws and administrative rules and regulations adopted by the
Association (as the same may be lawfully amended from time to time). Failure to comply shall
result in a claim for damages or injunctive relief, or both, by the Board (acting through its officers
on behalf of the Association and the Owners).
9.1.2 In any action or arbitration to enforce the provisions of this Section
or any other provision of this Declaration, the Articles or the Bylaws, the prevailing party in such
action or arbitration shall be entitled to an award for reasonable attorneys’ fees and all costs and
expenses reasonably incurred in preparation for prosecution of said action or arbitration, in
addition to all costs permitted by law.
Section 9.2 No Waiver of Strict Performance. The failure of the
Board in any one or more instances to insist upon or enforce the strict performance of any of the
terms, covenants, conditions or restrictions of this Declaration, or of any Bylaws or administrative
rules or regulations, shall not be construed as a waiver or a relinquishment for the future of such
term, covenant, condition or restriction, but such term, covenant, condition or restriction shall
remain in full force and effect. No waiver by the Board of any provision hereof shall be deemed
to have been made unless expressed in writing and signed by the Board.
Section 9.3 Remedies Cumulative. The remedies provided
herein are cumulative, and the Board may pursue them concurrently, as well as any other remedies
which may be available under law although not expressed herein.
Section 9.4 Arbitration. Should any dispute arise between the Owners as to the
terms of this Declaration, the Articles of Incorporation, the Bylaws, the rules and regulations for
the Association, or decisions made by the Association under authority granted in those documents,
the dispute shall be resolved through binding arbitration according to the rules of the Jefferson
County Mandatory Arbitration Program for the Superior Court of Jefferson County. The parties
shall agree to one arbitrator mutually acceptable to both parties. Further, for any dispute, the
prevailing party shall recover costs and reasonable attorneys’ fees, including those for appeals.
ARTICLE 10
LIMITATION OF LIABILITY
Section 10.1 No Personal Liability. So long as a Board member,
Association officer, or authorized agent(s) has acted in good faith, without willful or intentional
misconduct, upon the basis of such information as may be possessed by such person, no person
shall be personally liable to any Member, or other party including the Association, for any damage,
loss or prejudice suffered or claimed on account of any act, omission, error, negligence (except
gross negligence), any discretionary decision or failure to make a discretionary decision, by such
person in such person’s official capacity; provided, however, that this Section shall not apply
where the consequences of such act, omission, error or negligence are covered by insurance or
bond obtained by the Board pursuant to Article 4 or Article 8.
Section 10.2 Indemnification. Each Board member or
Association officer, and their respective heirs and successors, shall be indemnified by the
Association against all expenses and liabilities, including attorneys’ fees, reasonably incurred by
or imposed in connection with any proceeding to which he or she may be party, or in which he or
she may become involved, by reason of being or having held such position at the time such
expenses or liabilities are incurred, except in such cases wherein such person is adjudged guilty of
intentional misconduct, or gross negligence or a knowing violation of law in the performance of
his or her duties; provided, however, that in the event of a settlement, indemnification shall apply
only when the Board approves such settlement and reimbursement as being in the best interests of
the Association. Nothing contained in this Section shall, however, be deemed to obligate the
Association to indemnify any Member who is or has been a Board member or officer of the
Association with respect to any duties or obligations assumed or liabilities incurred by the Member
under and by virtue of the Declaration as a Member or Owner of a Home.
ARTICLE 11
MORTGAGEE PROTECTION
Section 11.1 Priority of Mortgages. Notwithstanding all other
provisions hereof, the liens created under this Declaration upon any Lot or Home for Assessments
shall be subject to tax liens on the Lot in favor of any assessing and/or special district and be
subject to the rights of the secured party in the case of any indebtedness secured by first lien
mortgages or deeds of trust which were made in good faith and for value. A Mortgagee, or other
purchaser of a Home, who obtains possession of a Lot as a result of foreclosure or deed in lieu
thereof will be liable for any Assessment accruing after such possession. Such unpaid share of
Common Expenses or Assessments shall be deemed to be Common Expenses collectible from all
of the Owners including such possessor, his successor and assigns.
Section 11.2 Effect of Declaration Amendments. The prior
written approval of the Ground Lessor and the affirmative vote of (i) Owners who represent at
least sixty seven percent (67%) of the total allocated votes in the Association, and (ii) the holders
of at least fifty one percent (51%) of the first mortgages (based on one (1) vote for each first
mortgage owned) covering individual Homes, shall be required for any amendments of a material
nature to this Declaration or the Bylaws of the Association. Any amendment to the Declaration or
Bylaws which changes any of the following shall constitute a material change:
(1) Voting rights;
(2) Assessment lien rights, or the priority of such liens;
(3) Reserves for maintenance, repair and replacement of the Common
Areas;
(4) Responsibility for maintenance and repairs;
(5) Reallocation of rights to use Common Areas, except as otherwise
provided in this Declaration;
(6) The boundaries of any Home;
(7) Convertibility of Homes into Common Areas, or of Common Areas
into Homes;
(8) The addition, annexation or withdrawal of property to or from the
Property;
(9) Hazard or fidelity insurance requirements;
(10) Insurance or fidelity bonds;
(11) Any decision by the Association to terminate any professional
management of the Property required by the Ground Lessor or change management companies
without Ground Lessor’s prior approval;
(12) Restoration or repair of the Property (after damage or partial
condemnation) in a manner other than specified in this Declaration or Bylaws;
(13) Any provisions that expressly benefit Mortgagees, insurers or
guarantors (i.e., Mortgagee priority); and
(14) Any provisions that protect the Ground Lessor’s fee interest in the
Property or otherwise require Ground Lessor to consent or approve.
No amendment of this Declaration shall be effective to modify, change or limit or alter the rights
expressly conferred upon Mortgagees in this instrument with respect to any unsatisfied mortgage
duly recorded unless the amendment shall be consented to in writing by the holder of such
mortgage. Any provision of this Article conferring rights upon Mortgagees which is inconsistent
with any other provision of this Declaration shall control over such other inconsistent provisions.
Section 11.3 Rights of Lien Holders. A breach of any of the
provisions, conditions, restrictions, covenants, easements or reservations herein contained shall
not affect or impair the lien or charge of any bona fide mortgage made in good faith for value on
any Homes; provided, however, that any subsequent owner of the Home shall be bound by these
provisions whether such owner’s title was acquired by foreclosure or trustee’s sale or otherwise.
Section 11.4 Copies of Notices. If the first Mortgagee of any
Home has so requested of the Association in writing, the Association shall give written notice to
such first Mortgagee that an Owner/mortgagor of a Home has for more than 60 days failed to meet
any obligation under this Declaration. Any first Mortgagee shall, upon written request, also be
entitled to receive written notice of all meetings of the Association and be permitted to designate
a representative to attend such meetings.
Section 11.5 Furnishing of Documents. The Association shall make available to
prospective purchasers, Mortgagees, and insurers, at their request, current copies of the
Declaration, Bylaws, and other rules governing the Property, and the most recent balance sheet
and income/expense statement for the Association, if any has been prepared.
ARTICLE 12
ABANDONMENT OF SUBDIVISION STATUS
Section 12.1 Duration of Covenants. The covenants contained
herein shall run with and bind the land and be perpetual, unless modified by an instrument executed
in accordance with Article 13.
Section 12.2 Abandonment of Subdivision Status. The
Association shall not, without the prior written approval of the governmental entity having
jurisdiction over the Property and without prior written approval of 100% of all first Mortgagees
and Owners of record and the Ground Lessor, seek by act or omission to abandon or terminate the
subdivision status of the Property as approved by the governmental entity having appropriate
jurisdiction over the Property.
ARTICLE 13
AMENDMENT OF DECLARATION OR PLAT
Section 13.1 Declaration Amendment. Amendments to this
Declaration shall be made by an instrument in writing entitled “Amendment to Declaration” which
sets forth the entire amendment. Except as provided in Article 11 or elsewhere in this Declaration,
this Declaration may be amended by an instrument approved and executed by (i) sixty-seven
percent (67%) of the Members in the Association, and (ii) the Ground Lessor. The members’
approval may be obtained by a special vote of the members at a meeting of the Association, or the
written consent of the requisite percentage of members. The amendment shall be executed by the
president and secretary of the Association who shall certify that the requisite vote or consent has
been obtained. It is specifically covenanted and understood that any amendment to this
Declaration properly adopted will be completely effective to amend any or all of the covenants,
conditions and restrictions contained herein which may be affected and any or all clauses of this
Declaration unless otherwise specifically provided in the section being amended or the amendment
itself.
Section 13.2 Amendments to Conform to Construction.
Declarant, upon Declarant’s sole signature, and as an attorney-in-fact for all Home Owners with
irrevocable power coupled with an interest, may at any time, until all Homes have been sold by
Declarant, file an amendment to the Declaration and to the Plat to conform data depicted therein
to improvements as actually constructed and to establish, vacate and relocate Easements.
Section 13.3 County Approval Required for Certain Declaration Amendments.
Notwithstanding anything contained in this Declaration to the contrary, any provision regarding
the operation or maintenance of the following Plat improvements may not be amended without the
prior written approval of Jefferson County, Washington: stormwater facilities, parking, shared
utility lines, and maintenance of street trees and required vegetation within the adjoining public
rights of way.
Section 13.4 Amendments Impacting Rights of Ground Lessor. This Declaration
may not be amended in any manner which removes, limits, restricts, or alters in any way the
Ground Lessor’s rights under this Declaration, without the written approval of the Ground Lessor
documented in a written amendment to this Declaration signed by Ground Lessor and recorded in
the official records of Jefferson County, Washington. Any amendment altering Ground Lessor’s
rights without its consent shall be null and void and of no effect.
ARTICLE 14
CONDEMNATION; DAMAGE OR DESTRUCTION
Section 14.1 Condemnation. Except as otherwise provided in the applicable
Ground Lease, and subject to any terms, conditions, and restrictions contained therein, proceeds
of any condemnation of all or a portion of the Property shall be allocated as set forth in this Section
14.1.
14.1.1 Association as an Attorney-in-Fact. If one or more Homes is
partially or completely condemned, the Association shall act as the representative of the Owners
and Mortgagees in any proceeding, negotiation, or settlement. Each owner appoints the
Association as its attorney-in-fact for this purpose. The Ground Lessor shall represent itself as the
owner of the land. Any proceeds shall be paid to the Ground Lessor and the Association for the
benefit of the owners and the Mortgagees and shall be used and distributed as set forth below.
14.1.2 Homes Livable. In the event of partial condemnation which does
not result in any Home becoming unlivable, the proceeds shall be used: (i) to restore the Common
Area; (ii) for payment to the Ground Lessor for condemnation of its fee interest and then to the
Owners and their Mortgagees specially damaged by the condemnation, provided the damage was
a part of the condemnation award; and (iii) the balance, if any, to the Association.
14.1.3 Home Unlivable. In the event of partial condemnation which does
result in some but not all of the Homes becoming unlivable, unless Ground Lessor elects to rebuild
such Homes, the Property documents shall be amended to reflect any required elimination of
Homes and reallocation of percentage interests, and the condemnation proceeds shall be used: (i)
for payment to Owners and their Mortgagees eliminated in the revised documents, to the extent
value of the entire Home was an element of the condemnation award provided any payment to an
Owner shall not exceed the resale price it would otherwise be entitled to if the Home had been sold
as opposed to condemned; (ii) to the restoration of the remaining Common Area; (iii) for payment
to Owners and their Mortgagees specially damaged by the condemnation but which remain in the
Property, which damages were an element of the condemnation award; and (iv) for payment to the
Ground Lessor for any loss in its fee interest in the land and any value associated with the
condemned Home or Lot which exceeds the resale price otherwise due Owner under subsection
(i) above; and (v) the balance shall be distributed to the Association.
14.1.4 Condemnation Disposition. In the event that the entire Property is
taken or condemned, or sold or otherwise disposed of in lieu of or in avoidance thereof, the
Property ownership pursuant thereto shall terminate. The condemnation award for the Homes shall
be apportioned in accordance with the terms of the Ground Leases.
Section 14.2 Damage and Destruction.
14.2.1 In Accordance with the Act. In the event of any damage to or
destruction of all or any part of the Property, a decision by the Owners to do other than repair,
construct or rebuild in accordance with the original Plat shall be made in accordance with those
requirements of the Act then in effect. Nothing contained in this Section shall be construed to give
an Owner, the Ground Lessor or other party priority over any right of the first Mortgagee of the
Home pursuant to its mortgage in the case of distribution to such Owner of insurance proceeds or
condemnation awards.
14.2.2 Rights of Home Owner. An Owner of a Home which has been
damaged or destroyed shall have the right to repair, reconstruct or rebuild the Home, without a
vote of the Association, so long as the Owner obtains the written consent of the Board and the
Ground Lessor within ninety (90) days from the date of damage or destruction and causes the work
to be performed in a manner satisfactory to the Board and the Ground Lessor. However, the Owner
must make arrangements satisfactory to the Board and Ground Lessor for the Owner’s payment of
all costs of repair, reconstruction or rebuilding not covered by such Owner’s insurance proceeds.
14.2.3 Emergency Work. The Board shall need no approval from the
Association or an Owner for emergency work. “Emergency work” shall mean that work which
the Board determines is reasonably necessary to avoid further damage, destruction, or substantial
diminution in value to the improvements located on the Property and to reasonably protect the
Owners from liability resulting from the condition of the Property.
ARTICLE 15
MISCELLANEOUS
Section 15.1 Notices.
15.1.1 Any written notice or other documents as required by this
Declaration, may be delivered personally or by certified mail. If by mail, such notice, unless
expressly provided for herein to the contrary with regard to the type of notice being given, shall
be deemed to have been delivered and received 48 hours after a copy thereof has been deposited
in the United States mail, postage prepaid, addressed as follows:
15.1.2 If to a Member, other than Declarant: to the mailing address of
such Member maintained by the Association, pursuant to the Bylaws.
15.1.3 If to Declarant, whether in its capacity as a Member, or in any
other capacity, the following address (unless Declarant shall have advised the Board in writing of
some other address):
Habitat for Humanity of East Jefferson County
P.O. Box 658
Port Townsend, WA 98368
15.1.4 Prior to the organization of the Association, notices to the
Association shall be addressed as set forth above. Thereafter, notices to the Association shall be
addressed to the official mailing address furnished by written notice from the Association. In
addition, from and after the organizational meeting, notice of the address of the Association shall
be given by the Board to each Owner, within a reasonable time after the Board has received actual
notice of such Owner’s purchase of a Home.
Section 15.2 Conveyance. If a Home is being sold, the Board shall
have the right to notify the purchaser, the title insurance company, and the closing agent of the
amount of unpaid Assessments and charges outstanding against the Home or Lot, whether or not
such information is requested.
Section 15.3 Successors and Assigns. This Declaration shall be
binding upon and shall inure to the benefit of the heirs, personal representatives, successors and
assigns of Declarant, and the heirs, personal representatives, grantees, and assignees of the
Member.
Section 15.4 Joint and Several Liability. In the case of joint
ownership of a Home, the liability of each of the Owners thereof in connection with the liabilities
and obligations of Owners, set forth in or imposed by this Declaration, shall be joint and several.
Section 15.5 Construction. The provisions of this Declaration
shall be liberally construed to effectuate its purpose of creating a uniform plan for the operation
and maintenance of the Property.
Section 15.6 Captions. Captions given to the various articles and
sections herein are for convenience only and are not intended to modify or affect the meaning of
any of the substantive provisions hereof.
Section 15.7 Effective Date. The Declaration shall take effect
upon recording.
Section 15.8 Severability. The provisions hereof shall be deemed independent
and severable, and the invalidity or partial invalidity or unenforceability of any one provision or
portion thereof shall not affect the validity or enforceability of any other provision hereof.
Section 15.9 Third Party Beneficiaries. Habitat and Ground Lessor are third-
party beneficiaries of this Declaration and retain the right to enforce its terms to ensure the Property
is perpetually used and maintained consistent with the requirements of this Declaration and all
other agreements between Habitat, and/or Ground Lessor, and each Owner to achieve the goals of
the permanent affordability homeownership program of Habitat and Ground Lessor.
ARTICLE 16
DEVELOPMENT RIGHTS AND SPECIAL DECLARANT RIGHTS.
Section 16.1 Special Declarant Rights. Declarant reserves to itself the following
Special Declarant Rights: (a) to complete any improvements shown on the Plat including without
limitation all Homes contemplated for construction; (b) to use all easements through the Property
for the purpose of such work, (c) to select Board members for the period allowed hereunder, (d) to
access and enter the Property as needed to complete construction and obtain final certificates of
occupancy for all Homes, (e) to execute such amendments to this Declaration as may be permitted
pursuant to RCW 64.90.285, and (f) to amend this Declaration during any period of Declarant
control. Until all Homes have been sold by Declarant, this Declaration may not be amended by
the Association in a manner which removes, limits, restricts, or alters in any way Declarant’s rights
under this Declaration, without the written approval of Declarant.
Section 16.2 Transfer. The rights described in this Article may not be transferred
except by instrument evidencing the transfer executed by Declarant or its successor and the
transferee, and recorded in Jefferson County, Washington. The rights and liabilities of the parties
involved in such a transfer, and of all persons who succeed to any development right or special
declarant right, are set out in RCW 64.90.425. Declarant may contract or otherwise arrange for
any third party agent of Declarant to complete improvements within the Property; such
arrangements shall not constitute a transfer of development rights or special declarant rights.
Section 16.3 Rights of Ground Lessor under the Ground Lease. Nothing
contained herein shall limit, amend, restrict or otherwise modify the Ground Lessor’s rights under
the Ground Leases.
ARTICLE 17
RESERVATION OF EASEMENTS
Section 17.1 Easement for Home Construction. Declarant reserves for itself and
its successors and assigns, affiliates, contractors, subcontractors and other agents, a nonexclusive
easement over, under and across the Property for purposes of developing, constructing, marketing
and selling Homes and the completion of all improvements and landscaping required as a condition
of approval of the Plat or otherwise deemed necessary or desirable by the Declarant. Any damage
to the Property resulting from the exercise of such easement shall be repaired by, and at the expense
of, the Declarant or individual or entity exercising the easement right. Declarant shall not
unreasonably interfere with access to any Lot or Home provided, however, temporary closures of
the alley or other access points are allowed if needed for construction activities. Declarant shall
provide at least 24 hours prior written notice to any Owner affected by a closure by attaching a
copy of such notice to the door of the Home.
ARTICLE 18
FEE SIMPLE SALES WITH RESTRICTIVE COVENANT
Nothing in this Declaration prohibits (nor shall be construed to prohibit or limit in any
manner) sales of Lots and Homes on a fee simple basis subject to a Permanent Affordability
Restrictive Covenant in a form then required by Habitat, Salish Coast Housing, LLC, or any
successor or assigns of same (the “Steward”). In such event, references to the term Ground
Lease in this Declaration shall include the Permanent Affordability Restrictive Covenant signed
by Owner in favor of the Steward, the term “Ground Lessor” as used herein shall mean such
Steward, and the term “Home” shall mean the Home together with the Lot, as applicable.
ARTICLE 19
MASON STREET DEVELOPMENT IS A HABITAT FOR HUMANITY OF EAST
JEFFERSON COUNTY PROJECT DEVELOPED FOR SALE TO INCOME
QUALIFIED BUYERS. THE PROJECT IS SUBJECT TO RESALE, LEASING AND
OTHER RESTRICTIONS.
Mason Street Development was developed by Habitat for Humanity of East Jefferson
County as a permanently affordable residential development available for purchase by income-
qualified buyers who will occupy the Home as their primary residence. Each buyer of a Mason
Street Development Home must be income-qualified by Declarant at the time of purchase and
satisfy all criteria for participation in Declarant’s program for permanent affordability in effect at
the time of purchase. The price at which an Owner may resell their Home is permanently
restricted. The Home may not be leased to others, even on a short term basis, without the prior
written consent of the Ground Lessor. As a condition of purchase, each Owner must sign a Ground
Lease or restrictive covenant that limits the resale price of the Home to ensure it remains affordable
to the next buyer and which grants to Declarant a first right to repurchase the Home and interest
in the Lot at the restricted price. These restrictions are a condition of participation in Declarant’s
permanent affordability program and compliance is required to purchase a Home in the Mason
Street Development development. Do not purchase a Home if the restrictions described in this
Declaration, in the required Ground Lease or restrictive covenant, and other recorded documents
are not acceptable to you.
[End of Text; Signature Page and Exhibits Follow]
IN WITNESS WHEREOF, Habitat has executed and declared this Declaration of Covenants,
Conditions, Restrictions, Easements, and Reservations for Mason Street Development on the
______ day of ____________________, 202_.
HABITAT FOR HUMANITY OF EAST JEFFERSON COUNTY,
a Washington non-profit corporation
_________________________________________
Jamie Maciejewski, Executive Director
STATE OF WASHINGTON )
) ss.
COUNTY OF JEFFERSON )
This record was acknowledged before me on ____________________, 202_ by Jamie
Maciejewski, in her capacity as Executive Director of Habitat for Humanity of East Jefferson
County.
(Stamp)
(Signature of Notary Public)
(Title of Office)
My Commission Expires:
(Date)
EXHIBIT A
MASON STREET DEVELOPMENT
(LEGAL DESCRIPTION OF PROPERTY SUBJECT TO DECLARATION)
That portion of the North ½ of the Southwest ¼ of said Section 2, Township 29 North, Range 1
West, W.M. described as follows:
Beginning at the Northwest corner of the Southwest ¼ of said Section 2;
Thence running 1,655 feet East to intersect with Irondale County Road;
Thence South 526 feet;
Thence West 1,655 feet to the West line of said Section 2;
Thence North along said West line 526 feet to the point of beginning;
EXCEPT those portions conveyed to the County of Jefferson for county roads by deeds recorded
under Auditor’s File No. 159886, 261228, and 274210;
ALSO EXCEPT that portion lying within the boundaries of Chalmers No. 2 Addition to Irondale,
as recorded in Volume 3 of Plats, page 9, records of Jefferson County, Washington;
Situate in the County of Jefferson, State of Washington.