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HomeMy WebLinkAboutHazel Creek Estates CC&RsF c- Conditions, Covenants and Restrictions For "HAZEL CREEK ESTATES" A PLANNED UNIT DEVELOPMENT Developer: Victor Kosmatka dba KB Rentals, LLC 3094 Wells Fargo Central Point, OR 97502 Any covenant conditions or restriction in this document indicating a preference limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin is omitted as provided in 42 USC SEC 3604 unless and only to the extent that the restriction (A) is not in violation of State or Federal Law (B) is exempt under 42 USC SEC 3607 or (C) relates to a handicap but does not discriminate against handicapped people. Hazel Creek Estates CC&Rs -1- DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR "HAZEL CREEK ESTATES" A PLANNED UNIT DEVELOPMENT THIS DECLARATION is hereby made and executed in Jackson County, Oregon, this day of , 200 by Victor Kosmatka, dba KB Rentals, LLC, the developer of HAZEL CREEK ESTATES, A PLANNED UNIT DEVELOPMENT, who is hereinafter referred to as "Declarant". WHEREAS, The City of Central Point, Oregon has issued its approval for a final plat and final PUD plan for an 8-lot, 16-unit multiple-family housing project, developed in a Planned Unit Development (PUD) format by virtue of the applicable zoning districts and proposed uses, and, WHEREAS, the development includes the necessity for each subsequent unit (lot) owner to be responsible for the maintenance of individual properties within the Planned Unit Development, such as building maintenance, landscaped areas, etc. that are part of the private ownership and the common areas within the development that were constructed to industry ~' standards, and, WHEREAS, Declarant intends to insure, through these Conditions, Covenants and Restrictions (CC&Rs) that the scope and quality of the development is consistent with industry standards throughout, and that said CC&Rs are created specifically for the purpose of maintaining and protecting the value, desirability and attractiveness of said property as completed. NOW, THEREFORE, DECLARANT HEREBY DECLARES: That the real property, lots and parcels described on the final plat attached as Exhibit "A", is, and shall be, held and conveyed either to private individuals or the Unit Owner's Association, subsequent to the approval of Final Plan by the City of Central Point, Oregon, said conveyance subject to the dedications, easements, and conditions as set forth on the plat, and the following Conditions, Covenants and Restrictions, all of which are for the purpose of maintaining and protecting the value, desirability and attractiveness of said property by individual owners of interest in the entire property, and providing a meaningful and reasonable provision for operations, maintenance and upkeep of the overall project, and to insure the health, safety and Hazel Creek Estates CC&Rs -2- welfare of the owners within the Planned Unit Development, consistent with the applicable provisions of the City of Central Point PUD Ordinance. 2. These Conditions and Restrictions shall constitute covenants to run with the land and shall be binding upon all persons or entities claiming under them; also these conditions, covenants and restrictions shall inure to the benefit and be limitations upon all owners of said property or of any interest therein, and their successors, heirs and assigns. ARTICLE I: 1. "Association" or "Owners Association" shall mean and refer to the HAZEL CREEK ESTATES UNIT OWNERS ASSOCIATION, anon-profit corporation, organized under the laws of the State of Oregon, its successors and assigns. 2. "Lot" shall mean and refer to any separately designated plot of land shown upon the recorded Final Plan of the PUD, as approved by the City of Central Point, Oregon. 3. "Mortgage" shall mean a Deed of Trust or Contract of Sale as well as a Mortgage. 4. "Mortgage" shall also mean a beneficiary under a Trust Deed or a vendor (seller) ~' under a contract of sale. 5. "Owner" shall mean and refer to the original record owner, or his successor in interest, heirs or assigns, whether one or more persons or entities, of all or any part of said property, but in the case of sale under a contract, owner shall also mean the contract purchaser of any lot or unit within the PUD. 6. "Declarant" shall mean and refer to the undersigned, and his successors, heirs and assigns. 7. "Plan" shall mean the Final PUD Plan of HAZEL CREEK ESTATES; A PLANNED UNIT DEVELOPMENT, as approved by the City of Central Point, Oregon. 8. "PUD" and "HAZEL CREEK ESTATES" shall mean an 8-lot, 16-unit multiple- family project located off Cherry Street and Hazel Street, in Central Point, Oregon. 9. "Tenant" shall mean any person leasing, renting, purchasing or living within a unit within HAZEL CREEK ESTATES, their successors, heirs and assigns. 10. "Common Area" shall mean all real property, and appurtenances thereto, now or hereafter owned and operated by the Association for the common use and enjoyment Hazel Creek Estates CC&Rs -3- of the members of the Association, including, but not limited to, parking areas, landscaping areas, exterior fencing and walls, lighting, and related facilities. ARTICLE II APPLICABILITY Every person or entity who is a record owner of tenant of land under the terms noted above of any lot or pazcel within the PUD, and shall be subject to the following Conditions, Covenants and Restrictions, which have been established for the welfare, safety and value of the properties described herein. ARTICLE III CONDITIONS AND RESTRICTIONS The following restrictions and conditions shall be applicable to the real property described as the HAZEL CREEK ESTATES, A PLANNED iJNTT DEVELOPMENT, as well as each lot in the project, and shall be for the benefit of and limitations upon all present and future owners of said property, or of any interest therein: Sectionl: Land Use, Building Type and use and Location: The use of the lots in this PUD shall be restricted to 16 residential dwelling units, and one lot consisting of common area. The residential units are constructed in the following configuration -eight duplex units. The units aze intended for residential purposes and it is the intent of the Declarant that each unit be placed on the individual (pad) lot. No asbestos or tarpaper siding shall be used on the exterior of any building in the PUD. Architectural composition shingle, shake, or file roof finishes may be used on any dwelling or accessory building, and accessory buildings shall conform generally to the same finish as the dwelling to which it is appurtenant. The architectural styles of the buildings are to follow the general orientation of the information approved by the Architectural and Site Plan Commission of the City of Central Point. All buildings shall be located upon the lots in conformity with the provisions of the City of Central Point Building and Planning regulations and codes in effect upon the data of recording these covenants. Hazel Creek Estates CC&Rs -4- ~ Section 2: Utilities and Easements: Easements for the installation and maintenance of public utilities and drainage outside the dwelling unit are reserved as shown on the recorded Final Plat, within the common azea. Separate utility lines shall be supplied to each individual dwelling unit. Service equipment and meters may be grouped in one or more locations as recommended and approved by the Central Point Public Works Department. The Association will collect, as part of the monthly fee, apro-rata share of the water service for maintaining the Landscaping and common area. Landscaping and common area water will be paid for by the Association, with apro-rata share of this cost being shared by each unit owner, as based upon the previous month's billing. Section 3: Signs: Unless written approval is first obtained from Declarant and the City of Central Point, no sign of any kind shall be displayed to public view on any lot or building on said property, except on professional sign of not more than twenty-five squaze feet advertising the project, or standard signs used by the developer to advertise the property during the construction, sales and rental period. "For Sale" signs for individual units must be approved by either the Declarant, Association Board of Directors, or authorized representative. \r Section 4: Sanitations: No part of said property shall be used or maintained as a dumping ground for rubbish, trash, garbage or any other waste. No garbage, trash or other waste shall be kept or maintained on any part of said property except in a sanitary container, which shall be kept in a clean and sanitary condition, and shall be stored so as not to be visible from the street or common areas (i.e. kept in garage) except for garbage pick-up day. Sanitation service is provided by Rogue Disposal Service. Section 5: Nuisance: No noxious or offensive conditions shall be permitted upon any part of said property, nor shall anything be done thereon which may be or become an annoyance or nuisance to the neighborhood. No animals, livestock or poultry of any kind shall be raided, bred or kept on any lot except that dogs, cats and other domestic pets may be kept, provided that they are not kept, bred or maintained for any commercial purpose or in unreasonable numbers. Hazel Creek Estates CC&Rs -5- The term "Nuisance" as used in this section, includes but is not limited to (a) loud and offensive noise, (2) barking dogs, (3) storage of junked, wrecked, junked or inoperative vehicles, and (4) littering, waste materials, offensive odor or other conditions deemed a nuisance as defined in state law. Nuisance enforcement will be via complaint and citation through the Central Point Police Department. Section 6: Vehicle Storage: Parking of boats, trailers, motorcycles, truck/campers, recreational vehicles, vehicles under repair, and like equipment shall not be allowed on any part of any lot, nor on any private or public ways adjacent thereto (with the exception of temporary parking for the purpose of loading and unloading) excepting only within the confines of any enclosed garage, storage port, or in parking areas specifically designed for such use, and in no event, project beyond the front walls of any dwelling or structure on the property. Off-street parking is provided by the PUD. Automobile washing, waxing, and cleaning etc. is exempt from this requirement. Section 7: Poles, Antennas and Overhead Wires: No poles shall be permitted within the PUD except for poles that are installed by the Developer to the City of Central Point street light standards. No overhead wires or antennas shall be erected or used for any purpose ('T'his provision is not to apply to power poles or lines already existing at the time of this declaration, or the rights of the power utility to maintain or reconstruct same, nor shall this provision prohibit the exercise of rights under pre-existing easements or agreements). Twenty-four (24") inch or smaller satellite dishes are permissible; however, easements have been granted for the provision of Cable TV and have been noted on the plat of the PUD as Public Utility Easements (PUE). Section 8: Ezterior Maintenance: Individual Units and Common Areas: Each owner having control of a unit within the development is required to keep the interior of the unit in good order and condition and to make all appropriate repairs. Building exterior and common area maintenance shall be the responsibility of the Unit Owners Association for the purpose, and shall include, but is not limited to the following: (a) sweeping and cleaning sidewalks, parking areas and related areas; Hazel Creek Estates CC&Rs -6- (b) maintenance of exterior street lighting; (c) common area landscape maintenance, including care and shrubbery appurtenants to the common areas. (d) Maintenance and repair of all common area underground utilities. Section 9: Landscaping: Lots and Common Area: HAZEL CREEK TOWN HOMES, A PUD, is developed as a residential complex utilizing private access and specific landscape features. The driveway within the complex is designated as a private street, and is not dedicated to the City. Streets and drives, parking areas, parking area landscaping, and all other real property not identified on the final plan of the PUD as a Lot are considered "Common Area" and are to be maintained by the Unit Owner's Association. Each lot and the unit placed on the lot and appurtenant landscaping shall be maintained consistent with these CC&Rs. Additionally, each lot within the PUD will be landscaped by the developer within 6 months of establishment of a building on the site, consistent with the landscaping that has been approved by the City of Central Point Architectural and Site Plan Commission. All landscaping shall be maintained on a regular basis, and noxious weeds, grass and overgrown properties will be cut and maintained consistent with Central Point City Ordinance requirements. Section 10: Temporary Residence: No camper, Recreational Vehicle, tent, trailer or other vehicle or structure shall be used at any time for a temporary residence on this property without the express approval of the Declarants, or the Board of Directors of the Unit Owner's Association. Section 11: Day Care Centers: Under no circumstances shall any residence within this PUD be utilized as a commercial day care facility. Section 12: Architectural Review: The Plans, specifications and plot plan for the dwellings to be constructed in said PUD have been designed by the developer. Any amendments to the proposed development must receive approval by Victor Kosmatka, the Declarant, or his heirs, successors in interest or assigns. Hazel Creek Estates CC&lZs -7- Declarant and/or the Unit Owner's Association explicitly reserve the right to make changes to the plans and specifications submitted for any proposed amendments. Declarant or the Unit Owner's Association shall, within fifteen working days from the application for approval, either approve or disapprove such plans or specifications. Any failure to act within a period of fifteen working days shall be deemed approval thereof. Section 13: Fences and Hedges: Plantings or fences shall be designed as part of the PUD landscape plan, consistent with the requirements of the City of Central Point Parks and Recreation criteria and the requirements of the PUD plan. Maximum height of any sight- obscuring fence shall be eight feet. Fences shall be constructed of suitable materials and shall not detract from the appearance of the project, or detract from the appearance of dwellings located on adjacent lots. Section 14: Rights of Enjoyment and Enforcement: All owners of lots, parcels or units within the PUD are entitled to share in the rights, interest and privileges and obligations of the private properties with the PUD, subject to the CC&Rs that are noted herein. The Declarant shall have the right to enforce, by any proceedings at law or in equity, all restrictions, covenants and conditions, and this Declaration. Failure by the Declarant to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so. Section 15: Severability: Invalidation of any one of these covenants, conditions or restrictions by judgment or court order shall in no way affect any other provisions, which shall remain in full force and efl"ect. Section 16: Amendment: The conditions, covenants and restrictions of this Declaration shall run with and bind the land, and shall inure to the benefit of and be enforceable by the Declarant, or the owner of any Lot subject to this declaration, their respective legal representatives, heirs, successors and assigns, for a term of twenty-five (25) years from the date this declaration is recorded, after which time said covenants shall be automatically extended for successive periods often (10) years each. Any of the conditions, covenants or restrictions of this declaration may be amended by an instrument signed by seventy-five (75) percent of the property `"fir Hazel Creek Estates CC&Rs -8- owners with HAZEL CREEK ESTATES, A PUD. Such amendments shall be recorded in the appropriate Deed Records of Jackson County, Oregon, to be effective. THE UNDERSIGNED, AS DECLARANT, SUBSCRIBED TO AND DATED THESE CONDITIONS, CONVENANTS AND RESTRICTIONS in Central Point, Jackson County, Oregon this day of , 200_. Victor D. Kosmatka, Member, KB Rentals, LLC STATE OF OREGON ) )ss. County of Jackson ) Personally appeared Victor D. Kosmatka, as Declarant, and acknowledge these Conditions, Covenants and Restrictions to be his voluntary act and deed: BEFORE ME: Notary Public For Oregon My Commission Expires Hazel Creek Estates CC&Rs -9- BYLAWS OF HAZEL CREEK ESTATES, A PLANNED UNIT DEVELOPMENT UNIT OWNERS ASSOCIATION ARTICLE I: NAME AND LOCATION The name of the Association is the "HAZEL CREEK ESTATES UNIT OWNERS ASSOCIATION," hereinafter referred to as the "Association". The principal office, of the Association shall be located at 3094 Wells Fargo Road, Central Point, OR 97502. ARTICLE II: GENERAL INFORMATION & DEFINITIONS Section 1: Application: These Bylaws shall govern the administration of specific real property, a Planned Unit Development known as HAZEL CREEK ESTATES, A PUD, and located in the City of Central Point, Jackson County, Oregon, and more particularly described in the Final Plat approved and dated , 200_ and recorded in the Official Records of Jackson County, Oregon. Section 2: Incorporation by Reference: The definitions contained in ORS 94.550 and ORS 100.440 are hereby adopted by reference. Section 3: Definitions: As used in these Bylaws, the following terms are defined as follows: (a) "Association" means an association of owners of real property in the HAZEL CREEK ESTATES, A PUD, the formal title of which is the HAZEL CREEK ESTATES UNIT OWNERS ASSOCIATION. (b) "Majority of owners" means the owners of more than seventy-five percent (75%) of the lots in the HAZEL CREEK ESTATES PUD. (c) "PUD" means HAZEL CREEK ESTATES, A PUD (Planned Unit Development) a multiple-family planned development located in Central Point, Oregon, and operated in a manner consistent with ORS 94.600. (d) "Common Area" shall mean all real property now or hereafter owned by the Association exclusively provided for the common use and enjoyment of the members of the Association. (e) "Lot" shall mean and refer to any separately designated plot of land shown upon any 1 recorded subdivision map of the property with the exception of the Common Area. (f) "Member" shall mean and refer to every person or entity who holds a membership in the Association. (g) "Owner" shall mean and refer to the owner of record of each unit, whether one or more persons or entities of any unit within the HAZEL CREEK ESTATES PUD, except in the case of sales under a land sales contract, in which case "owner" shall mean the contract purchaser, but excluding those having such interest merely as security for the perfonmance of an obligation. (h) "Declaration" or "Covenants" or "CC&Rs" shall mean and refer to the Conditions, Covenants and Restrictions applicable to the property, and contained in a Declaration made by the Developer. (i) "Declarant" shall mean and refer to Victor Kosmatka, the developer, dba KB Rentals, LLC, and his successors, heirs, personal representatives and assigns, if such successors in interest should acquire more than one undeveloped lot or building site from the Declarant for the purpose of development or resale. Section 4: Personal Application: All present or future owners, or any other person that might use the property or facilities thereon in any manner, are subject to the regulations set forth in these Bylaws, the Declaration, and any management agreement entered into pursuant to the terms thereof. The mere acquisition of any of the lots in the development or the mere act of occupancy of any of said lots will signify that these Bylaws, the provisions of the management agreement and the Declaration are accepted, ratified and will be complied with. ARTICLE III: ASSOCIATION, MEMBERSHII' AND VOTING Section 1: Membership in the Association: Any purchaser of a unit (lot) shall automatically, upon becoming the owner of said lot or unit, be a member of the HAZEL CREEK ESTATES LJNTT OWNERS ASSOCIATION, and shall remain a member of said Association until such time as his ownership ceases for any reason. Lot ownership shall be determined, for all purposes of the Declaration and the administration of the property, from the record of ownership maintained by the Association. The record shall be established by the owner filing with the Association a copy of the deed to his lot or unit, and to which shall be affixed the certificate of the recording officer of Jackson County, Oregon, showing [ the date and place of recording of such deed. No person shall be recognized as a lot or unit owner unless a ~r copy of the deed has been filed with the Association, as provided above, showing that person to be the 2 current owner of the lot. Notwithstanding the foregoing, the Developer shall be the voting member for all lots or units for which no deed has been filed with the Association indicating the ownership of the lot has changed from the Developer to a new owner. Section 2: VotlIIg: The total number of votes of all voting members within the project shall be 16, and the vote of each voting owner, including the Developer, shall be equal to the number of lots or units owned in the development as set forth in the Declaration. If a voting owner owns or represents more than one lot or unit, that owner shall have votes corresponding with each lot or unit owned or represented. Section 3: Designation of Voting Owners: There shall be one "voting owner" of each lot or unit, whether owned individually or jointly. The voting owner shall be designated by the record owner or owners of each lot or unit by written notice to the Association, and in certain cases, need not be a record owner. If the designation is to a first mortgagee, the designation may be in the form of an irrevocable proxy if otherwise, it shall be in the form of a proxy revocable at any time by actual notice to the association noting the transfer, sale, death, or judicially declared incompetency of any lot owner, or by written notice to the Association signed by the record owner or owners of any lot. Such powers of designation and revocation may be exercised by the guardian of a record owner's estate, or by his conservator, or in the case of a minor having no guazdian, by the pazent entitled to custody, or during the administration of a record owner's estate, by his executor or administrator where the latter's interest in said property is subject to administration in his estate. Where no designation is made, or where a designation has been made and revoked, and no new designation has been made, the voting owner of each lot or unit shall be the group composed of all of its record owners; any or all of such owners may be present at any meeting of the voting owners in person or by proxy. If those present act unanimously, they may vote or take any other action as a voting owner. Section 4: Association Resaonsibllities: The Association has the responsibility of administering the common azeas of the project, approving the annual budget, establishing and collecting monthly assessments, including pro-rata shazes of blanket insurance premiums, and arranging for the management of the property by a management agent pursuant to an agreement, containing provisions relating to the duties, responsibilities, obligations, removal and compensation of the management agent. 3 ARTICLE IV: MEETING OF LOT OWNERS Section 1: General: The lot or unit owners shall act at a meeting duly called on notice in accordance with these Bylaws at which a quorum is present. Section 2: 4uorum. Action at Meeting. Adiourned Meetings: At any meeting of the Association, lot or unit owners owning more than a majority of the lots present, in person or by proxy, shall constitute a quorum; the concurring vote of a majority of such lot or unit owners present and constituting a quorum shall be valid and binding upon the Association, except as otherwise provided by law, these Bylaws, or the Declaration. If less than a majority of the lot or unit owners are represented at a meeting, a majority of the lot or unit owners so represented at the meeting may adjourn the meeting from time to time without further notice. At such adjourned meeting, at which a quorum is present, any business may be transacted which might have been transacted at the meeting as originally noticed. The lot or unit owners present at a duly organized meeting may continue to transact business until adjournment, notwithstanding withdrawals of unit owners to leave less than a quorum. Section 3: Place of Meetines: The office of the Declarant, or any such other place as the Board of `r-' Directors shall designate, shall be the place of meeting for all annual and special meetings of the Association. Section 4: Transitional Advisory Committee and Turnover by Declarant: As provided for in ORS 94.604, the Declarant shall form a transitional advisory committee to provide for the transition of administrative responsibility of the property from Declarant to the Association, consistent with ORS 94.600. The procedure set forth in said statute shall be followed pertaining to the committee. Pursuant to the provisions of ORS 94.609, the Declarant shall call a meeting for the purpose of fuming over the administrative responsibility of the Planned Community to the Association, not later than one hundred and twenty (120) days after lots representing two-thirds (2/3) of the votes have been conveyed. ORS 94.616 provides for a turnover meeting, and establishes the procedures to be used by the Declarant and the Association in the conduct of the turnover meeting and the responsibilities of each in complying with the statute. All of the statutory procedures and requirements shall be complied with pertaining to the transition. 4 Section 5: Annual Meetin¢: The annual meeting of the lot owners shall be the third Saturday of January of each year, at 7:00 PM, for the purpose of electing the Directors whose terms expire at the date of the annual meeting and for conducting such other business as may be properly before the Board at such meeting. Section 6. Special Meetings: Special meetings of the Association may be called by the Chairman or by a majority of the Board of Directors for any purpose, and shall be called by the Chairman at the request of not less than thirty percent (30%) of the lot or unit owners entitled to vote at the meeting. Section 7: Notice of Meetings: Written or printed notice stating the place, date and hour of the meeting, and in the case of a special meeting, the purpose or purposes for which the meeting is called, shall be delivered not less than ten (10) nor more than fifty (50) days prior to the meeting, either personally or by mail, by or at the discretion of the chairman, the secretary, or the officers or persons calling the meeting, to each lot or unit owner entitled to vote at such meeting. If mailed, such notice shall be deemed to be delivered when deposited in the United States Mail, addressed to the lot owner at his last known address on the record of the Association, with postage thereon prepaid. Section 8: Prozies: At all meetings of the Association, a lot or unit owner may vote by proxy executed in `writing by the lot owner or by his duly authorized attorney in fact. Such proxy shall be filed with the secretary of the Association before or at the time of the meeting. Section 9: Informal Action by Lot Owners: Any action required to be taken at a meeting of the Association, or any other action which may be taken at a meeting of the Association, may be taken without a meeting only if such action is consented to, in writing, by all of the lot or unit owners entitled to vote on such action. ARTICLE V: BOARD OF DIRECTORS Section 1: Initial Board of Directors: The initial Board of Directors shall consist of two members, who shall be Victor Kosmatka and Daniel Kosmatka, or their heirs or assigns, who shall serve until their successors are elected and qualified. Section 2: Election of Directors: Terms of OfSce: The initial Board of Directors as noted above, or their successors, shall serve as the Board of Directors and govern all affairs of the Association until 5 such time as two-thirds (2/3) of all lots or units in the project have been sold, and until the turnover meeting as provided in these Bylaws. If the developers continue to be lot or unit owners, they may remain on the Board to serve out their remaining term of office. Terms: One (1) of the two initial directors shall serve on the Boazd until the third annual meeting following the initial election; one (1) shall serve until the second annual meeting. A third director shall be nominated and elected at the first annual meeting, that term to run for three yeazs. At the expiration of the term of each director at the annual meetings, the lot or unit owners shall elect a successor, which can be the director whose term is expiring, to serve until the third annual meeting following his election, or until his successor is elected and qualified. All elected officer: must be lot or unit owners. Section 3: Powers and Duties: The Board of Directors shall govern the affairs of the Association, and shall have such powers and duties as aze necessary for governing such affairs, including, but not limited to, the following: (a) The Boazd shall be responsible for the maintenance, upkeep, and repair of the Common Property. In performing this responsibility, the Board may employ such personnel to perform such services as necessary, on such terms and for such compensation as it may determine. (b) The Boazd may employ a Management Agent, at such compensation as the Boazd may determine, to perform such duties and services as the Boazd shall deem appropriate, including without limitation the duties of the Boazd set forth in these Bylaws. The first Manager may be appointed by the Developer. All compensation paid to the Management Agent shall constitute a common expense. (c) The Boazd may determine and collect from each lot or unit owner the assessments provided herein, and may enforce any and all rights the Association may have for such collection, including without limitation any lien on the unit owners for common expenses. (d) The Boazd may, from time to time, adopt and or amend rules and regulations governing the details of operation and use of the common elements. (c) The Boazd may deal with instances of problem resolution, and, review any litigation proposed by the Association, or filed against the Association. Any instance of litigation where the filing is in excess of $5,000, must, and shall be, approved by 75% of the owners by ballot approval. Section 4: Vacancies on Board of Directors: Any vacancy occurring on the Board of Directors may be filled by the affirmative vote of a majority of the remaining directors by no less than a quorum of the Board of Directors. A director elected to fill a vacancy shall be elected for the unexpired term of his 6 predecessor in office. Any directorship to be filled by reason of an increase in the number of directors or by reason of the removal of one or more directors shall be filled by election at an annual meeting or at a special meeting of the lot or unit owners called for that purpose. Section 5: Removal of Directors: Any or all of the directors may be removed with or without cause at a meeting expressly called for that purpose, by a vote of a majority of the lot or unit owners entitled to vote at an election of directors. A successor may then, or at any other annual or special meeting, be elected to fill the vacancy thus created for the remainder of the term vacated. Any director who ceases to be a lot or unit owner shall cease being a director. Section 6: Organization Meeting: Immediately following the turnover meeting of the lot or unit owners, the newly elected directors shall meet for the purpose of election of officers, and the transaction of such other business as may be appropriate. No separate notice of such meeting is required. Section 7: Regular Meetings of the Board: Regular meetings of the Board of Directors may be held at such times and place to be determined, from time to time, by a majority of the directors, but at least four (4) such meetings shall be held during each calendar year. Notice of regular meetings shall be `" given by the chairman or secretary to each director, either personally or by mail, telephone, or telegraph, at least three (3) days but not more than thirty (30) days prior to such meeting, which notice shall state the time, place, and purpose of the meeting. Section 8: Special Meetings of the Board of Directors: Special meetings may be called by the chairman or by any two (2) directors upon three (3) days notice, such notice given either personally or by mail, telephone or telegraph, and stating the time, date, place and purpose of the meeting. Section 9: Board of Directors Quorum: At all meetings of the Board of Directors, a majority of the directors shall constitute a quorum for the transaction of business, and the acts of the majority of the directors in attendance at said meeting shall be the acts of the Board of Directors. If; at any meeting of the Board of Directors there is less than a quorum present, the majority of those present may adjourn the meeting from time to time without notice until a quorum is seated. At any adjourned meeting, any business that might have been transacted at the meeting as originally called maybe transacted without further notice. ~' Section 10: Presumption of Assent: A director who is present at a meeting of the Board of 7 Directors, during which action on any matter is taken, shall be presumed to have assented to the action taken unless the director's dissent is entered into the minutes of the meeting, or filed in writing with the person acting as secretary of the meeting, before the adjournment thereof; or shall forward such dissent by certified mail to the secretary within twenty-four (24) hours of the adjournment of the meeting. Such right to dissent shall not apply to a director who voted in favor of such action. Section 11: Compensation of Directors: The directors and officers shall not be entitled to any compensation for serving the association in any of these capacities. ARTICLE V: OFFICERS Section 1. Desienation: The principal officers of the Association shall be Chairman, Vice Chairman, Secretary and Treasurer, all of whom shall be elected by and from the Board of Directors. The Board may appoint an assistant treasurer, and an assistant secretary, and any other such officers as in their judgment may be necessary. Any person may hold more than one office, except no one person may simultaneously hold the office of Chairman and Secretary. Section 2: Election and Term of Office: The officers shall be elected annually by the Board of Directors at the first meeting of the Board held after each annual meeting of the Association, or as soon thereafter as is convenient. Each officer shall hold office until his successor has been duly elected, unless be resigns, dies in office, or has been removed in the manner herein provided. Section 3: Removal of Officers: Any officer elected or agent designated by the Board of Directors may be removed by the Board of Directors whenever, in its judgment, the best interests of the Association will be served; but such removal shall be without prejudice to the contract right, if any, of the person so removed. Section 4. Vacancies in Office/Officers: A vacancy in any office because of death, resignation, removal, disqualification or otherwise, shall be filled by the Board of Directors for the unexpired portion of the term. Section 5: Chairman: The Chairman shall be the principal executive officer of the Association, and is subject to the control of the Board of Directors. The Chairman shall preside at all meetings of the Association and the Board of Directors, and shall perform all duties incident to such office, and such ~" other duties as may be proscribed by the Board, inc 1 uding, but not limited to, the following: 8 a) Supervise and control the affairs of the Association; b) Sign, with the Secretary, or any other proper officer of the Association authorized by the Board of Directors, any deeds, mortgages, bond; contract; or other instruments which the Board has authorized to be executed, except in those cases where the signing and execution thereof shall be expressly delegated by the Board or these Bylaws to some other officer or agent of the Association, or required by law to be otherwise signed or executed. Section 6: Vice Chairman: The Vice Chairman shall take the place of the Chairman, and perform such duties as noted above, and assigned by the Board of Directors whenever the Chairman is absent or unable to act; the Vice Chairman shall perform such other duties as may, from time to time, be imposed by the Board of Directors. If neither the Chairman nor the Vice Chairman is able to perform the official duties of the Chair, the Board shall appoint a member of the Board to do so on an interim basis. Sectlon 7: Secretary: The Secretary shall perform all duties incident to the office of the Secretary and such other duties as from time to time may be assigned by the Chairman or the Board of Directors, including, but not limited to: a) Keep the minutes of the meetings of the Association, and the Board of Directors, in one or more books provided for that purpose; b) See that all notices are duly given in accordance with the provision of these Bylaws or as required by law; c) Be custodian of the records of the Association. Section 8: Treasurer: The Treasurer shall perform all duties incident to the office of the Treasurer, and such other duties as from time to time may be assigned by the Chairman or the Board of Directors, including, but not limited to: a) Charge and custody of and responsible for, all funds of the Association; b) Receive and give receipts for monies due and payable to the Association from whatever source, c) Deposit all monies in the name of the Association in such banks, credit unions, trust companies or other depositories as shall be selected by the Board of Directors. ARTICLE VI: OBLIGATIONS OP OWNERS Section 1: Assessment of Common Eznenses: The record owner of each lot or unit within the ~ development shall be liable for, and pay, apro-rata share of the common expenses in proportion to the 9 number of lots or units owned in the project. Common expenses shall include: a) The cost of maintenance and all expenses for the Common Property; b) All charges for taxes on the Common Property, specifically excepting there from real property taxes and other taxes assessed separately on each unit; c) Utility costs, assessments, and adequate liability insurance on the Common Property; d) Costs of repair, replacement or rebuilding of common areas; e) Yard, janitorial, road maintenance and improvements, and other similar services for the common area; as well as exterior maintenance of the structures on site; g) Wages, accounting and legal fees, management fees and other expenses of upkeep, maintenance, management and operations actually incurred on or for the Common Property. Common expenses shall also include such amounts that the Board of Directors may deem proper to make up any deficit in the common expenses of any prior year, and areplacement/reserve fund to meet anticipated needs, replacement; repairs and contingencies. ARTICLE VII: COMMON EXPENSES Section 1: Manner of Collection: The Treasurer of the Association shall submit to each unit ~" owner (or renter) at least monthly, a current statement of all assessments for common expenses for which owner or renter is liable. Each unit owner or renter shall be entitled to receive an itemized statement of common expenses. Each owner shall have thirty (30) days to pay such statement, and if not paid within that time, the Board of Directors may take whatever action as deemed necessary, consistent with the Declaration and Bylaws. If the owner or renter were to default for a period of thirty (30) days or more in the assessment, or any installment thereof, the Board may, at its option, so long as the default continues, demand and receive from the tenant occupying the lot, the rent due, or becoming due, from such tenant to the owner, up to an amount sufficient to pay all funds due from the owner, including interest at 9% or the prevailing legal rate, and any such payment of rent to the Board by the tenant shall be sufficient discharge of obligation between the tenant and the owner to the extent of the amount so paid. However, any such demand or acceptance of rent from any tenant shall not be deemed a consent to, or approval of, any lease by the owner, or a release of discharge of any of the obligations of the owner hereunder, or surrender of any rights. In the event the Board makes such demand upon a tenant, as noted above, the tenant shall not have the right to question the authority of the Board to make such payments, provided, however, that the Board may not exercise this right if a receiver has been appointed to take charge of the premises pending 10 a mortgage foreclosure, or if a mortgagee is in possession pending a mortgage foreclosure. Section 2: Authorization of Eznenses/Anaroval of Vouchers• The following rules shall apply to the authorization of the Common Expenses, and approval of Vouchers: a) Nonrecurring common expenses totaling less than five hundred dollars ($500.00) may be authorized by any officer. Vouchers covering such items may be paid upon approval by the Chairman or the Treasurer. b) Vouchers covering public liability expenses and other similar, regular recurring expenses maybe paid upon approval by the Chairman or the Treasurer. c) Items of common expense over five hundred dollars ($500.00) but less than five thousand dollars ($5,000.00) may not be authorized or incurred, or any vouchers covering such items may not be paid, except by an affirmative vote of a majority of the Board of Directors. d) Except as provided in subsection a) above, items of common expense exceeding five thousand dollars ($5,000.00) or more may not be authorized or incurred except by an affirmative vote of a majority of the owners of the Association, at a meeting held in accordance with the provisions of Article III. No vouchers covering such items shall be paid except by the affirmative vote of a majority of the Board of Directors. ~ e) Any items of common expense, totaling not more than fifteen thousand dollars ($15,000.00), in the nature of an emergency expense, such as repair or replacement of destroyed common elements, or the satisfaction of a lien which would cause substantial inconvenience to the unit owners, may be authorized and incurred, and the vouchers covering such items to be paid, only by the affirmative vote of a majority of the Board of Directors, without regard to the limitations of subsections a), b) and c) above; however, such action must be reported to the Association at the next official meeting. ARTICLE VIII: INSURANCE Section 1: Insurance: The Association shall obtain, and maintain at all times, insurance policies to cover the following: a) policy or policies insuring the Developer, the Association, the Board of Directors, lot or unit owners, and the management agent against liability to the public or to the owners, their invitee or tenants, incident to the ownership and/or use of the property. There shall be excluded from such policy or policies any coverage of a home owner (other than as a member of the Association or Board of Directors) for liability arising from acts or omissions of such home owner, and any 11 liability incident to the ownership and or use of the part of the property to which such home owner has rights of use or occupancy. Limits of Liability under such insurance shall not be less than one hundred and fifty thousand dollazs ($150,000.00) on a combined single limit basis. This limit and coverage is to be reviewed at least annually by the Association, and increased at the discretion of the Association by a majority vote. All such policies shall be issued on a comprehensive liability basis, and shall provide cross liability endorsement wherein the rights of named insured shall not be prejudiced. b) Worker's Compensation Insurance to the extent necessary to comply with all applicable State laws. c) Blanket, all-risk insurance on the units in the development as provided under Article XII of the Declaration. Insurance obtained by the Association shall be governed by the following provisions: a) All losses under policies hereafter in force regarding the property shall be settled exclusively with the Boadd of Directors or its authorized representative, provided, however, that where a first mortgage has been designated as a loss payee by a unit owner, such mortgagee shall be entitled to settle losses as to the mortgaged home. b) Each unit owner shall be required to notify the Board of Directors of all improvements in excess of one thousand dollazs ($1,000.00) made to his lot or unit. c) Each unit owner shall be responsible for obtaining at his own expense, insurance covering his property not insured under paragraph a) above, and against his liability not covered under pazagraph b) above, unless the Association agrees otherwise. d) Any unit owner who obtains individual insurance policies covering any portion of the property other than his personal property and fixtures shall be required to file a copy of such individual policy or policies with the Association within thirty (30) days of the purchase of such insurance. The proceeds from any casualty policy, whether held by the Association or a unit owner, payable with respect to any loss or damage to the common elements, shall be held in trust for the benefit of all insured as their interest may appear. Insurance premiums for insurance coverage for the common area obtained by the Association in accordance with this article shall be a common expense to be paid by regular assessment levied by the Association, which shall be in addition to, and not included within, the regular monthly assessments, provided in Article V of the Declaration, and such payments shall be held in a sepazate escrow account of the Association and used solely for the payment of the insurance premiums as such come due. `r-' 12 ARTICLE IX: FIDELITY BONDS The Board of Director, shall require that all employees, officers and agents of the Association handling, or responsible for its funds, shall obtain adequate fidelity bonds. The premiums on such bonds shall be common expenses. ARTICLE X: AUDITS/REVIEWS The Board of Directors shall appoint a certified public accountant or certified public accounting firm as auditor, who shall not be an officer of the Association, nor own any interest in any lot in the project, to audit or review the books and financial records of the Association. This requirement may be waived by the approval of two thirds (2/3) of the lot owners. ARTICLE XI: CONTRACTS The Board of Directors may authorize an officer, a management agent or other agents to enter into any contract, or execute and deliver any instrument in the name of and on behalf of the Association. Such authority may be general, or confined to specific instances. The Board shall have the right to enter into contracts to make additions, alterations or improvements to the Common Property costing less than five thousand dollars ($5,000.00) consistent with the provisions of Article VII, Section 2, and to pay for the same from the reserve funds established by the Board, or to specifically assess lots within the project thereto as a common expense. For expenditures in excess of five thousand dollars, ($5,000.00) the Board shall receive the approval of two thirds (2/3) of the lot owners. ARTICLE XII: LOANS No loan shall be contracted for on behalf of the Association, and no evidence of indebtedness shall be issued in its name unless authorized by the affirmative vote of two thirds (2/3) of the lot owners. Such authority may be general, or confined to specific instances. ARTICLE XIII: CHECKS, DRAFTS AND VOUCHERS ~ All checks, drafts, vouchers or other orders for the payment of money, notes, or other evidences 13 of indebtedness issued in the name of the Association shall be signed by such officer or officers, agent or agents, of the Association in such manner as shall be determined by resolution of the Board of Directors. ARTICLE XIV: DEPOSITS All funds of the Association shall be deposited by the Treasurer, or a designated officer of the Association, to the credit of the Association, in such banks, credit unions, trust companies or other depositories selected by the Board of Directors and accountability will be provided by a bookkeeping system constructed to generally accepted accounting principals. ARTICLE XV: INDEMI~TIFICATION Each director and officer of the Association, now or in office hereafter, and the heirs, executors and administrators shall be indemnified by the Association against all costs, expenses or liability which are reasonably incurred by that officer or director in connection with, or resulting from, any action, suit, proceeding or claim to which they may be made a party, or in which they may become involved by reason of acts or alleged acts of omission or commission arising from their performance as a director or officer of the Association, whether or not the officer or director continues in office. Such indemnification shall not apply, however, with respect to any matter in which a director or officer shall be finally adjudged in any action, suit, proceeding or claim as having been i~idividually guilty of willful misfeasance or malfeasance in the performance of his duties as a director or officer of the Association. Further, the indemnification provided shall, with respect to any settlement of any suit, action, proceeding or claim, include reimbursement of any amounts paid and expenses reasonably incurred in settling such suit, action, proceeding or claim, when, in the judgment of the Board of Directors, a settlement or reimbursement appears to be in the best interests of the Association. This forgoing right of indemnification shall be in addition to and not exclusive of any and all other rights which any such director or officer may be entitled to under any agreement, vote of Association owners, or otherwise. ARTICLE XVI: AMENDMENTS TO BYLAWS Amendments to these Bylaws may be initiated by Resolution of the Board of Directors, or by any member of the Association. Any proposed amendment shall be delivered in writing either personally or ~ by mail, to each voting member not less than ten (10) nor more than thirty (30) days before the date of the 14 e e meeting at which the proposed amendment will be voted on. If mailed, such notice shall be deemed delivered when the notice was deposited in the United States Mail, addressed to each owner at his last known address as determined by the records of the Association, postage prepaid. No amendment of the Bylaws shall be effective unless approved by two thirds (2/3) of the voting owners, and until a copy of the Bylaws, as amended, has been certified by the Chairman and Secretary of the Association, and recorded with the Clerk and Recorder's office of Jackson County, Oregon. ARTICLE XVII: MORTGAGES Section 1: Notice to Association: Any property owner who mortgages his interest in a lot or unit shall notify the Association, through the managing agent or directly to the Secretary, of the name and address of his, mortgagee, and the Secretary shall maintain such information in the records of ownership of the Association. Section 2: Notice of Unpaid Assessment: The managing agent or the Board of Directors, upon request from any mortgagee or prospective purchaser of any lot or interest therein, shall report to such person the amount of any unpaid assessments due from the owner of the respective lot. `. ARTICLE XVIII: COMPLL~NCE Section 1: Subordination: These Bylaws are subordinate and subject to the provisions of the Declaration, all amendments thereto, and any applicable state, city or county ordinance controlling Planned Unit Development projects. Section 2: Interuretation and Severability: In case any provision of these Bylaws shall be held invalid, such invalidity shall not render any other provision of these Bylaws invalid, and they shall stand as written until challenged. Nothing in these Bylaws shall be interpreted to authorize the Association or the Board of Directors to conduct or engage in any act or business for profit on behalf of any, or all, of the lot or unit owners. ARTICLE I~IIX: WAIVER OF NOTICE Whenever any notice is required to be given to a lot or unit owner, member of the Association or a Director of the Association, a waiver thereof, in writing and signed by the person entitled to such notice, 15 _j shall be equivalent to the giving of such notice. ARTICLE XX: ADOPTION OF BYLAWS The undersigned hereby adopt the foregoing on behalf of the Association as the Bylaws of the HAZEL CREEK ESTATES UNIT OWNERS ASSOCIATION, this day of , 200 . By: Victor Kosmatka, Member KB Rentals, LLC STATE OF OREGON) )ss. County of Jackson ) Personally appeared before me, Victor Kosmatka, and acknowledged the foregoing Bylaws to be his voluntary act and deed: BEFORE ME: Notary Public for Oregon My Commission Expires: 16