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HomeMy WebLinkAboutCOVENANTS - Legacy Townhomes Condos PH1 - Final PlatDECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR THE LEGACY TOWNHOMES OF REXBURG WITH BYLAWS FOR THE LEGACY TOWNHOMES OF REXBURG HOMEOWNERS' ASSOCIATION DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR THE LEGACY TOWNHOMES OF REXBURG WITH BYLAWS FOR THE LEGACY TOWNHOMES OF REXBURG HOMEOWNERS'ASSOCIATION ARTICLE I RECITALS, DESCRIPTION OF PROPERTY AND DECLARATION OF COVENANTS 1.1 Declaration of Covenants, Conditions and Restrictions. This Declaration of Covenants, Conditions and Restrictions (subsequently called this "Declaration"), is made effective on the date subsequently set forth in this Declaration by the Legacy Townhomes of Rexburg Home Owners Association, (subsequently called the "Association"). 1.2 The Property. The Association consists of an eighteen (18) parcel Townhouse project on the real property legally described in Exhibit "A". In that regard, Exhibit "A" is incorporated into this Declaration and made a part of this Declaration as if set forth in full. The real property described in Exhibit "A" may be called the "project" from time to time throughout this Declaration. 1.3 Declaration of Covenants. All eighteen (18) parcels in the project are and shall be held, transferred, sold, conveyed, used, leased and occupied subject to these covenants, restrictions, easements, charges and liens set forth in this Declaration (subsequently called the "CCR's" collectively as required in or by the context of this Declaration from time to time), which are for the purpose of enhancing the value and desirability of, and which shall be an equitable servitude running with, each parcel constituting any part of the project and shall be binding on all persons having any right, title or interest in each parcel constituting any part of the project, and each such person's heirs, successors and assigns, and shall inure to the benefit of each such person and any other holder of any interest in any parcel constituting any part of the project. 1.4 Description of Townhouse Ownership. A multiple family dwelling townhouse layout has been constructed on the project. In that regard, each parcel, together with the improvements thereon, constitutes a single family residential dwelling (subsequently called a "parcel" as required in or by the context of this Declaration from time to time). Each parcel will be sold, as described in a separate 1 - Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws legal description for such parcel, in separate legal documentation prepared and signed at time of the parcel's purchase, and each parcel will be considered, and by this Declaration is, a separate freehold estate, separately described and conveyed, but sharing a common wall with an adjoining parcel. Each parcel will also have full rights of ownership, but will be governed by, and subject to, both the provisions of this Declaration and all amendments subsequently made to this Declaration. Each parcel shall consist of all land comprising such parcel in fee simple, together with all structures or improvements located on such real property, as well as all rights appurtenant thereto. 1.5 Survey Map and Descriptions. The map and the legal descriptions set forth on the map for each parcel attached to this Declaration as Exhibit "B" are incorporated into this Declaration and made a part of this Declaration as if set forth in full. 1.6 Common Areas. There are no common areas jointly owned by all parcel owners which should be subject to apportioned real property taxes. ARTICLE 2 DEFINITIONS 2.1 The teens used in this Declaration, unless otherwise further or more specifically defined in this Declaration, shall have the meanings given such terms in the Act. 2.2 "Act". "Act" means the Idaho Condominium Property Act, Idaho Code Sections 55-1501 et. seq. as u1 effect on the date of the recording of this Declaration. 2.3 "Association". "Association" means the unincorporated association of the home owners formed by this Declaration for the Legacy Townhomes of Rexburg. The Association shall be composed of each of the owners of any of the parcels.. 2.4 "Common Expense". "Common Expense" means any amount assessed against an owner of a parcel pursuant to this Declaration, and pursuant to such rules and regulations as the Association shall adopt, or agree upon, for the care and maintenance of any easement property and the 2- Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws common good and benefit of the parcel owners. 2.5 "Development Plan". "Development Plan" means the graphic representation of the project and the legal descriptions for each of the parcels as set forth on Exhibit "B". 2.6 "Easement Property". "Easement Property" means that part of each parcel not covered by buildings, or fenced yards, as granted by the original subdivision. Any enclosed area shall then become a limited easement area private to the parcel owner and maintained by the Association only if gates and access are readily available to the maintenance crews. If the fenced area is not accessible in such a manner, then that parcel owner will be responsible for maintaining that portion of the parcel in the enclosed area. 2.7 "Institutional Mortgagee". "Institutional Mortgagee" means any institutional holder of any interest in any mortgagee or deed of trust by which a parcel of the project is encumbered. 2.8 "Management Body" "Management Body" means the Association or the designated agent of the Association. 2.9 "Project". "Project" means, and refers to, all real property described in Exhibit "A", together with all improvements existing or from time to time constructed thereon. 2.10 "Owner". "Owner" means the record owner, whether one or more persons or entities, of the fee simple title to any parcel, excluding however, any mortgagees unless and until such mortgagee has acquired title pursuant to foreclosure or any proceeding in lieu of foreclosure. If a parcel is owned by more than one person or entity, the multiple owners shall only allowed one vote in the meetings of the Association. A purchaser of a parcel under a contract of sale shall be deemed an owner if the contract is recorded in the Madison County Recorder's Office. 2.11 "Parcel". "Parcel" means the entire parcel of property as described by the metes and bounds description, together with all appurtenances thereto. Each parcel shall consist of the 3 - Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws described land, together with all improvements constructed thereon, but subject to the easements identified in this Declaration. Each unit, as subsequently defined, shall share a common wall with one or more of the other parcels. The parcels are "Townhouse" parcels in that each owner owns and is responsible for all the improvements on the parcel. 2.12 "Unit". "Unit" means all improvements constructed on a parcel. The unit number means the street address and number of the unit that will be used as a post office address. ARTICLE 3 OWNERSHIP, DESCRIPTION, RIGHTS AND RESTRICTIONS 3.1 Metes and Bounds Description Required. Each parcel may be conveyed only by full recitation of the metes and bounds description. The unit number shown in connection with each parcel is only for convenience of reference and for use as a postal address. 3.2 Ownership. The owner of each parcel shall own in fee simple title the entire land area of the parcel, together with all improvements located thereon, as well as all appurtenances and all benefits of these covenants, subject only to the covenants, restrictions, easements, charges and liens set forth in this Declaration and in the instrument of conveyance. All property taxes, assessments and special taxes or charges of the State of Idaho or of any political subdivision thereof, or other lawful taxing or assessing body shall be assessed against or levied upon each parcel separately and shall be lien thereon pursuant to Idaho Code Section 55-1514(c). 3.3 Taxation. The real property taxes shall be assessed individually against each parcel. The only common areas consist of easement rights. Such easement rights shall not be taxed separately and prorated between the parcel owners. 3.4 Easements. Each parcel is hereby declared to be subject to, and conversely the owners thereof, and the Association shall have the benefit of the following common easements: a. A perpetual right and easement for ingress and egress by person and vehicles. 4- Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws b. A perpetual right and easement of light, air, prospect over and across all the easement property. C. The right of horizontal and lateral support. d. The right to clean, maintain, repair, replace, beautify, landscape, and decorate the easement property including the right to remove any vehicle or other property left upon the individual driveways for more than forty-eight (48) consecutive hours without being moved. e. An easement for the water, gas, electric, sewer and TV cable and other utility lines as the same now exist, or as may hereafter be authorized by the Association, together with the right to maintain, repair and replace the same. f. If any building upon any of the parcels encroaches or shall hereafter encroach upon another parcel, an easement for such encroachment and for the maintenance of the same shall and does exist. g. The right, upon approval by the Association with reasonable notice, to go in upon the parcel and in the residence as necessary to clean, maintain or repair the exterior of the residence, adjacent units, and any easement property. 3.5 Restrictions. a. Maintenance. No charge, addition or alteration or change in exterior decoration shall be done by the owner except in conformity to the exterior decorating scheme adopted and approved by the Association for all of the units. Any fencing, fixed basketball goal, structure significant landscaping or exterior modification to the original construction or lot grade on any lot must receive written approval from the Association prior to construction. It will remain the duty of the owner to maintain the structural integrity and weatherability of such owner's unit, specifically including, but not limited to, maintaining the soundness of the roof, windows, doors and exterior walls. b. Limitation on New Structures. No structures of any kind shall be placed on any of the easement property, except by the Association. Neither shall any vehicle or personal property of any kind be left upon the easement property for more than twenty four (24) consecutive hours without being moved. The easement property shall not be for storage of any property. C. No Subdivision. No parcel shall be subdivided in any fashion or utilized by more than one living group. 5 - Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws d. Insurance. All structures and improvements on each parcel shall be fully insured at all times by a recognized and substantial insurance company for the full replacement value for all risks insurable in the Rexburg, Idaho area. Any damage or destruction to the unit shall be promptly restored by the owner to its original design and dimensions to conform to the buildings and improvements existing on the other parcels or as otherwise approved the Association. e. Approval for Structures. No building, fence, wall or other structure of any land or landscaping shall be commenced, erected or maintained upon any parcel, unless the plan and specification showing the nature, kind, shape, height, materials and location are submitted to and approved in writing as to harmony of external design and location and topography by the Association, except that reasonable landscaping shall be fully allowed within fenced yards. 3.6 Party Wall Between Units. All dividing walls and adjoining roof structures now or thereafter constructed between any two (2) units on the property shall be considered party walls, shall be deemed to belong to the respective common owners as tenants in common and shall be used for the common purpose of the units separated thereby. The preservation and structural repair of any one of said party walls, except for interior decoration, shall be the joint duty and obligation of the persons using the particular party wall. No structural changes in any one of said party walls shall be undertaken without the prior written consent and approval of the Association and each of the users of the particular party wall. a. In the event any such party wall is damaged or destroyed through the act of one adjoining owner, any of his guests, agents, or members of his family (whether or not such act is negligent or otherwise culpable) so as to deprive the other adjoining owner of the full use and enjoyment of such party wall, then the first such owners shall forthwith proceed to rebuild and repair the same to as good condition as formerly, without cost to the adjoining owner. b. In the event any such party wall is damaged or destroyed by some cause other than the act of one of the adjoining owners, his agents, guests or family (including ordinary wear and tear and deterioration from lapse of time), then in such event, both such adjoining owners shall proceed forthwith to rebuild or repair the same to as good condition as formerly at their joint and equal expense. C. In the event of a dispute between owners with respect to the repair or rebuilding of a party wall or with respect to the sharing of the cost thereof, then upon written request of one of such owners addressed to the president of the Association, the matter shall be submitted to mediation or arbitration under such rules as may from time to time be adopted by the Association. If no such rules have been adopted, 6- Declaration of OCR's for The Legacy Townhomes of Rexburg with Bylaws then the matter shall be submitted to three arbitrators, one chosen by each of the owners and the third by the Association. A detennination for the matter signed by any two arbitrators shall be binding upon all parties involved in the subject dispute. The cost of arbitration shall be shared equally by the two owners involved in the dispute. 3.7 Lien for Assessments. As more fully provided in this Declaration, each parcel shall be subject to a periodic assessment by the Association for its expenses. The assessments of the Association shall constitute a lien upon such parcel until paid. Additionally, the Association may impose fines for violation of these covenants upon approval by the Association's Board of Directors. Such fines shall constitute a lien upon such parcel until paid. 3.8 Covenants and Restrictions Appurtenant to Parcels. All rights or interests and obligations and restrictions created hereunder shall be deemed appurtenant to each parcel and shall not be separable therefrom. Any conveyance or encumbrance shall also be deemed a conveyance or encumbrance subject to, and together with, those appurtenant rights, interests, obligations or restrictions, even though not expressly stated or referred to in such transfer, conveyance or encumbrance. 3.9 Access Easement. Each owner, and the Association and its agents, shall have a nonexclusive easement of reasonable scope to go in and upon the parcels and into the units to service the utility lines that go under, through or over a parcel and to make such use as may be necessary or appropriate to perfonn the duties and functions which the Association is obligated to perform pursuant to this Declaration. ARTICLE 4 TOWNHOUSE HOMEOWNERS ASSOCIATION 4.1 Association Created. By this Declaration, Declarant, the current owner of the project, declares the existence of a Homeowners Association as an unincorporated nonprofit association under Idaho Code Section 53-701 et seq. The purpose and powers of the Association shall be all of the purposes and powers set forth in this Declaration. The Association shall perfonn the duties and enforce the covenants and restrictions set forth in this Declaration. 7- Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws 4.2 Name. The name of this Association shall be the Legacy Townhomes of Rexburg Homeowner's Association. 4.3 Purpose. The purpose of the Association shall be; a. To promote the collective and individual property and civic interests of owners of the respective parcels in Legacy Townhomes of Rexburg. b. To care for the improvements and maintenance of the easement property and maintain the exterior decoration and appearance of the buildings and .other improvements on the parcels. C. To aid and cooperate with the owners in the enforcement of all conditions, covenants and restrictions on or appurtenant to their respective parcels. d. To collect funds for the Association's common expenses and to exercise any and all power that may be delegate to the Association by the owners of the respective parcels from time to time. C. Except on dissolution, the Association shall not make any distributions to the Association's members and the net gains shall not inure to the individual benefit of the Association's members, but shall be used exclusively for the purposes set forth in this Declaration. 4.4 Membership. Every owner shall be a member of the Association. If title to a parcel is held by more than one person, the membership related to that parcel shall be shared by all such persons in the same proportionate interests and by the same type of tenancy in which the title to the parcel is held. An owner shall be entitled to one membership for each parcel owned by such owner. Each such membership shall be appurtenant to the parcel upon which such membership is based and shall be transferred automatically by conveyance of that parcel. No person or entity other than an owner may be a member of the Association, provided, however, that the rights of membership may be assigned to a mortgagee as further security for a loan secured by a lien on a parcel. 8- Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws 4.5 Administration. Each of the owners covenant and agree that the administration of the easement property, the enforcement of covenants and restrictions, and exterior decoration functions of the Association property shall be in accordance with the provision of this Declaration and the bylaws of the Association. 4.6 Meetings of Association. a. Place of Meetings. Meetings of the Association shall be held at such place within Madison County, Idaho, as the Board of Directors may specify in the notice, except as otherwise specified this Declaration. b. Annual Meetings. The annual meetings of the Association shall be held on the third Thursday of March of each year, provided that the Board of Directors may by resolution, fix the date and place of the annual meeting on such other date or such other place in Madison County, Idaho, as the Board of Directors may deem appropriate. C. Special Meetings. Special meetings of the Association may be called at any time by written notice signed by a majority of the Board of Directors, or by owners having thirty percent (30%) of the total votes, delivered not less than ten days prior to the date fixed for said meeting. Such meeting shall be held on the project or such other place in Madison County, Idaho, as the notice may specify, and the notice thereof shall state the date, time, place and matters to be considered and shall contain a proxy for absentee voting. d. Notices. Any notice permitted or required to be delivered as provided in this Declaration shall be in writing and may be delivered to each Association member's unit or by mail. If delivery is by mail, it shall be deemed to have been delivered forty eight (48) hours after a copy of the same has been deposited in the United States Mail, postage prepaid, addressed to each owner at the address given by such person to the secretary for the purpose of service of such notice or to the unit of such person if no other address has been given. Such address may be changed from time to time by notice in writing to the secretary. e. Quorum. At any meeting of the Association, the owners of more than thirty percent (30%) of the voting rights, present, in person or represented by proxy, shall constitute a quorum for any and all purposes, except where by express provision of this Declaration a greater vote is required, in which event a quorum shall be the number required for such vote. In the absence of a quorum a meeting may be adjourned from time to time, without notice other than by announcement at the meeting, until holders of the amount of interest requisite to constitute a 9- Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws quorum shall attend. At any future gathering such an adjourned meeting where a quorum is present, any business may be transacted by which owners were originally notified. £ Voting. Voting shall be on a parcel basis, and each parcel shall be entitled to one vote. When a quorum is present at any meeting, the vote of owners representing at least fifty-one percent (51 %) or more of the voting rights of the owners either present in person or represented by proxy, shall decide any question of business brought before such meeting, including the election of the Board of Directors, unless the question is one upon which this Declaration requires a different vote, in which case such express provision shall govern and control the decision of such question. All votes may be cast either in person or by proxy. The proxies shall be in writing and shall be delivered to the secretary prior to the meeting. g. Waiver of Notice. Any owner may at any time waive any notice required to be given under this Declaration or by statute or otherwise. The presence of an owner in person at any meeting of the owners hall be deemed such waiver. 4.7 Action by Written Resolution. Any action that could be approved by a duly constituted meeting of the Association may be approved by written resolution in the following fashion: a. By its own motion, or upon written petition signed by at least thirty percent (30%) of the owners, the Board of Directors shall cause a statement of the proposal to be delivered to all parcel owners. The statement shall set forth the proposed resolution and contain short statements from the proponents of the resolution and from the opponents of the action, if any, which fairly set forth the arguments in favor and against the proposal. b. The statement shall be accompanied by a ballot containing the proposal and shall state a period of time beginning at least ten (10) days and not more than twenty- one (21) days from delivery when the ballot will be returnable to the secretary of the Association or other location designed by the Board of Directors. A statement and ballot shall be either hand delivered to member's residence or mailed to each owner at the address maintained on the records of the Association. Mail delivery shall be complete on mailing by first-class mail. d. A resolution will be deemed approved upon the receipt by the secretary of the Association, or any other duly appointed agent designated by the Board of Directors, within the designated time period of affirmative ballots signed by a majority of all owners. If the action be one that requires a two-thirds majority of 10- Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws all homeowners, or two-thirds of the members in attendance at a duly called meeting, the receipt of affirinative ballots signed by two-thirds of all homeowners shall be required for approval. 4.8 Board of Directors. a. Purposes and Powers. The Board of Directors shall be composed of three (3) members, each of whom must be owners of parcels. On the majority vote of all parcel owners at a duly constituted meeting of the Association or by written resolution signed by a majority of all parcel owners, the number of directors constituting the Board of Directors may be expanded. No director may fulfill his or her duties by proxy or substitute. b. Elections. At the first special meeting of the Association called for that and any other purpose, an election of the Board of Directors shall be held for the initial Board of Directors. The directors shall serve for a tern of three years, with one elected one year, one elected the next, and one every third year. In other words, only one director shall be replaced annually in order to maintain some continuity. Each member of the Board of Directors shall hold office until his or her successor has been elected and hold his or her first meeting. C. Vacancies. In the event of vacancies on the Board of Directors resulting from any reason whatsoever, a special meeting of the Association shall be called pursuant to Section 4.6, paragraph c., for the purpose of electing a director to fill the remainder of the tern vacated. d. Regular Meetings. A regular meeting of the Board of Directors shall be held immediately after the adjournment of each annual Association meeting. Regular meetings, other than the annual meeting, shall or may be held at regular intervals at such places and at such times as either the president or the Board of Directors may from time to time designate. e. Special Meetings. Special meetings of the Board of Directors shall be held whenever called by the president or by at least two (2) members of the Board of Directors. By unanimous consent of the Board of Directors, special meetings may be held without call or notice at any time or place. Quorum and Voting. A quorum for the transaction of business at any meeting of the Board of Directors shall consist of a majority of the Board of Directors. All action shall be approved upon the vote of a majority of those in attendance at the duly called meeting at which a quorum is in attendance. A member of the Board of Directors may be represented by a proxy only if, but only if, the proxy is unanimously approved by all the other directors in attendance at the meeting. 11 - Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws g. Compensation. Members of the Board of Directors, as such, shall not receive any stated salary or compensation. h. Waiver of Notice. Before or at any meeting of the Board of Directors, any member of the Board of Directors may, in writing, waive notice of such meeting and such waiver shall be deemed equivalent to the giving of such notice. Attendance by a member of the Board of Directors at any meeting of the Board of Directors shall be a waiver of notice by him or her of the time and place thereof. Adjournments. The Board of Directors may adjourn any meeting from day to day or for such other time as may be prudent or necessary, provided that no meeting may be adjourned for longer than thirty (30) days. Fidelity Bonds. The Board of Directors may require that all officers and employees of the Board of Directors handling or responsible for funds must provide adequate fidelity bonds. The premium on such fidelity bonds shall be a common expense. k. Indemnification. Each member of the Board of Directors shall be indemnified and held harmless by the owners against all costs, expenses and liabilities whatsoever, including without limitation, attorney's fees reasonably incurred by him or her in connection with any proceeding to which he may become involved by reason of his or her being or having been a member of the Board of Directors. Expenses incurred by reason of this indemnification shall be a common expense. Written Resolution. Any action of the Board of Directors that could be approved at a meeting may be taken without a meeting if a consent in writing setting forth the action to be authorized, is signed by the members of the Board of Directors. 4.9 Officers. a. Designation and Election. The principal officers of the Board of Directors shall be a president, a vice-president, and a secretary -treasurer, all of who shall be selected by and from the Board of Directors at its first meeting following the annual meeting of the Association for a one-year terms. The Board of Directors may appoint an assistant secretary -treasurer and such other officers as in its judgment may be necessary or desirable, but the same shall not be voting members unless elected as a member of the Board of Directors. b. Removal of Officers and Agents. All officers and agents shall be subject to removal, with or without cause, at any time by the affirmative vote of the majority of the then members of the Board of Directors. 12- Declaration of OCR's for The Legacy Townhomes of Rexburg with Bylaws President. The president shall be the chief executive of the Board of Directors and shall exercise general supervision over the Association's property and affairs. The president may also function as managing agent. The president shall sign on behalf of the Association all contracts relating to the property and shall do and perforin all acts and things that the Board of Directors may require of him or her. The president shall preside at all meetings of the Association and the Board of Directors. The president shall have all of the general powers and duties which are normally vested in the office of the president of a corporation, including but not limited to, the power to appoint committees from among the members from time to time as he or she may decide is appropriate to assist in the conduct of the townhouse project. The president shall be the agent for serving process in any action relating to the common easement pursuant to Idaho Code Section 55-1512. d. Vice President. The vice-president shall take the place of the president and perform his or her duties whenever the president shall be absent or unable to act. If neither the president nor the vice-president is able to act, the Board of Directors shall appoint some other members thereof to do so on an interim basis. The vice- president shall also perform such other duties as shall from time to time be prescribed by the Board of Directors. e. Secretary -Treasurer. The secretary -treasurer shall keep the minutes of all meetings of the Board of Directors and of the Association, have charge of the books and papers as the Board of Directors may direct, shall in general, perforin all the duties incident to the office of the secretary -treasurer and shall have the responsibility for the funds and securities of the Association and shall be responsible for keeping full and accurate accounts of all receipts and all disbursements in books belonging to the Board of Directors. The secretary - treasurer shall be responsible for the deposit of all monies and all other valuable effects in the name and to the credit of the Association in such depositories as may be from time to time designated by the Board of Directors. f. Compensation. No compensation shall be paid to the officers for their services as officers. No compensation shall be paid to an officer for services perforined by him or her for the Board of Directors in any other capacity, unless a resolution authorizing such compensation shall have been unanimously adopted by the Board of Directors before the services are undertaken. 4.10 Administrative Rules and Regulations. The Board of Directors shall have the power to adopt and establish by resolution such management and operational rules as the Board of Directors may deem necessary for the maintenance, operation, management and control of the property. Regulations governing the use of the project by the owners shall be adopted only after due notice of the proposed 13 - Declaration of OCR's for The Legacy Townhomes of Rexburg with Bylaws regulations is given to all owners and such owners are given an opportunity to present arguments for or against such regulations. 4.11 Obligation to Comply Herewith. All owners shall comply with all provisions of this Declaration, the bylaws and the administrative rules and regulations pertaining to the project and shall require such compliance from their respective children, tenants, guests, employees, and any other persons whom such respective owners invite upon the project. All agreements, decisions and determinations lawfully made by the Association shall be deemed to be binding on all owners and shall inure to their benefit. Each owner, any group of owners, or the Association shall have standing and authority unless otherwise provided, to enforce by an legal means, including suit for specific performance, injunctive relief or damages, the provisions of the Declaration and any duly adopted decisions or regulations of the Association. ARTICLE 5 MANAGEMENT 5.1 General Management Project. a. Responsibility for Management. The Association shall have the responsibility for management of the project. b. Management in Accordance with Declaration, Etc. The Association shall be responsible for the control, operation and management of the project in accordance with the provisions of this Declaration and such administrative, management and operational rules and regulations as may adopted by the Association. C. Necessary Powers. The Association shall have the powers necessary for the administration of the project's affairs. d. Actions by Association. Without limiting the rights of any owner, actions may be brought by the Association on behalf of two or more of the owners with respect to any cause of action relating to the easement property appurtenant to one or more parcels, but all expenses incurred by the Association in so doing shall be addressed to the owners for whose benefit the suit is being brought. C. Specific Duties of Association. The Association shall have the obligation to contract for the operation, repair and maintenance of the easement property and the exterior decoration, for necessary legal and accounting services and to purchase materials and supplies therefor. The Association shall make all 14- Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws expenditures authorized once such expenditures have been authorized in the annual budget. Upon ten (10) days notice to the Association and upon payment of a reasonable fee therefor, the Association shall furnish to any owner a statement of his account setting forth the amount of any unpaid assessments or other charges due or owing from such owner. The Association shall bill, collect, and receipt the collection of all monthly assessments and shall enforce the collection thereof. The Association shall have the affirmative obligation to enforce all provisions of this Declaration and shall retain the services of an attorney when necessary to do so. The Association shall record in the office of the Madison County Recorder all instruments affecting any parcel or the project. The Association shall see that all members are informed with respect to all regulations as may be adopted and promulgated by the Board of Directors or the Association from time to time. The Association shall have the authority and duty to designate and remove, when the Association deems removal appropriate, any property or item improperly remaining on the easement property and to contract for the snow removal, cleaning, maintenance and repair of the improvements on the easement property. 5.2 Accounting. a. Books and Accounts. The books and accounts of the Association shall be kept under the direction of the secretary -treasurer and in accordance with the reasonable standards of accounting procedures. b. Report. At the close of each accounting year, the books and records of the project shall be review by a person or firm approved by the Association. Report of such review shall be prepared and submitted to the owners at or before the annual meeting of the Association, provided, however, that a certified audit by a certified public accountant approved by the Association shall be made if the owners so vote. C. Inspection of Books. Financial reports, such as are required to be furnished, shall be available at the principal office of the Association for inspection at reasonable times by any owner. 5.3 Mortgagee's Right to Management Information. Any mortgagee shall be entitled upon request to: a. inspect the books and records of the project at the office of the Association during normal business hours; b. receive an annual financial statement of the Association within ninety (90) days following the end of the fiscal year; and 15- Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws C. receive written notice of all meetings of the Association and be permitted to designate a representative to attend all such meetings. 5.4 Contracting of Administrative Duties. The Association may, at its option, enter into an agreement with any other homeowner's association or professional management entity for a period of not exceeding three (3) years for performance of administrative duties of the Association. The Association may contract with such agents as appropriate for any of its required functions including the collection of assessments and all bookkeeping and accounting. ARTICLE 6 COMMON EXPENSES 6.1 Owner Shall Pay. Each owner shall pay to the Association such owner's allocated portion of the common expenses of the Association that shall include an annual budget for the expenses of the management, operating, repair and maintenance of all the easement property and exterior decoration. The assessment shall be equal for every parcel. 6.2 Annual Budget. The Association shall prepare an annual budget that shall indicate anticipated management, operating, maintenance, repair and other common expenses for the Association's next fiscal year. The annual budget shall be the basis for the assessment for that next year. The annual budget may include among other things, insurance, common lighting, landscaping and care of grounds, repairs, renovations and painting of the easement property, snow removal, wages, water charges, legal and accounting fees, management fees, expenses and liabilities incurred by the Association under or by reason of this Declaration, the payment of any deficit remaining from a previous period and the creation of a contingency or other reserve or surplus fund, as determined by the Association. The Association's fiscal year shall be the calendar year. 6.3 Presented to Owners. A proposed annual budget shall be presented at a regularly constituted meeting of the Association to be scheduled at least one month before the commencement of the budgeted year. At such meeting, approval by sixty percent of all owners present either in person or represented by proxy, shall be necessary to ratify the annual budget for the following fiscal year. The budget for the prior year shall remain in effect until a new budget is approved. Failure to hold the annual budget meeting by the scheduled time shall not invalidate the budget process for the rest of the year. 16- Declaration of OCR's for The Legacy Townhomes of Rexburg with Bylaws 6.4 How Assessed to Owners and Paid. All portions of the annual budget shall be assessed to the owners in proportion to the parcels owned by each. The assessment as thus determined and pro rated to the owners shall be payable by such owners in twelve (12) equal installments with the first installment due on the first day of the budgeted year and each succeeding installment due at one month intervals thereafter or at such greater interval as the Board of Directors may direct. The owners shall pay the assessments when due without any deduction on account of any set-off or claim which the owner may claim to have against the Association. 6.5 Adjustment of Periodic Installments. The Association may at any time, up to the close of the budget year, decrease the amount previously fixed as the annual budget and decrease the periodic installments assessed against each owner accordingly. 6.6 Interest and Costs of Collection. Each periodic installment of such assessments shall be assessed a late fee, if not paid within ten (10) days after it is due. All costs of collection of such assessments, including reasonable attorney's fees, costs of suit and costs of establishing a lien or foreclosure of the same, shall also become a debt of the owner at the time such costs are incurred. 6.7 Lien Against Parcel. The amount of any such assessments or any other extraordinary assessments together with costs of collection shall be secured by a lien upon the parcel assessed, from and after the time the Association causes to be recorded with the Madison County Recorder's Office a notice of assessment which shall state the amount of the annual assessment, the amount of any periodic installment and the due date thereof and all incurred or anticipated collection costs, a description of the parcel against which it has been assessed and the name of the recorded owner thereof. Such notice shall be signed by a duly authorized representative of the Association and may be filed at any time after delinquency in payment. If any assessment or installment is not paid within there (3) months of the due date, such lien may be foreclosed in like manner as a mortgage upon real property. 6.8 Capital Improvements. Following the execution of this Declaration, assessment to parcel owners for major maintenance items on the easement property exceeding $3,000 in cost shall not be made without the approval of sixty-six and two-thirds percent (66 2/3%) vote of the owners at a 17- Declaration of OCR's for The Legacy Townhomes of Rexburg with Bylaws duly called meeting of the Association. 6.9 No Abandonment. No owner may exempt such owner from liability for such owner's contribution toward the expenses of the Association by waiver of the use or enjoyment of any of the easement properties or by the abandonment of such owner's parcel. 6.10 Reserve Fund Upon Transfer. If any owner transfers such owner's parcel to another, such owner's interest in all funds of the Association, including any reserve fund, shall be deemed to also have been transferred to the new owner as an appurtenance to the transferred parcel. 6.11 Grantee Liable. Subject to subparagraph 6.14 below, the grantee of a parcel shall be jointly and severally liable with the grantor for all unpaid assessments owned by the grantor at the time of the conveyance, but such liability shall be without prejudice to the grantee's rights to recover from the grantor the amounts paid by the grantee therefor. 6.12 Statement of Assessment. Upon payment of a reasonable fee and upon written request by any owner, mortgagee, prospective mortgagee, or prospective purchaser of a parcel, the Association shall issue a written statement setting forth with respect to any parcel the amount of the unpaid assessments, if any, the amount of the current periodic assessment and the date that such assessment becomes or became due; credit for advanced payments or prepaid items, including, but not limited to, an owner's share of prepaid insurance premiums, which statement shall be conclusive upon the Association in favor of persons who rely thereon in good faith except in the case of obvious error. Unless the request for such written statement shall be met within ten (10) days, all unpaid assessments which become due prior to the date of making of such request shall be subordinate to the lien, if any, held by the person making the request. Any mortgagee may pay any amount shown as due on such statement, and upon such payment such mortgagee shall have a lien on such parcel for the amounts paid of the same rank as the lien of his encumbrance. 6.13 Assignment of Rents. If any owner who is renting such owner's parcel to another shall default for a period of one month in the payment of any assessment, the Association may, at the Association's option, and for so long as such default shall continue, demand and receive from any tenant occupying the parcel, any portion of the rent due or becoming due, and to the IS - Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws extent such rent is paid to the Association such tenant shall be discharged of liability to such owner. 6.14 Mortgagee Protection. Notwithstanding all other provisions of this Article, the lien created under this Declaration upon any parcel shall be subject and subordinate to, and shall not affect the rights of the holder of the indebtedness secured by any recorded first mortgage and any purchase money mortgage created by the original purchaser of such parcel from developer made in good faith and for value, provided that after foreclosure and sale by any such first mortgagee, there may be a lien created to secure all assessments, whether regular or special, coming due after the date of such foreclosure sale. No amendment of this Declaration shall affect the rights of the holder of any such mortgage recorded prior to recordation of such amendment who does not join in the execution thereof By subordination agreement executed by the Association, the benefits of this paragraph may be extended to mortgagees not otherwise entitled thereto. Any mortgagee which comes into possession of the parcel pursuant to the remedies provided in the mortgage or by transfer in lieu of the foreclosure shall take the property free of any claims for unpaid assessments or charges the notice of lien for which was filed of record in the Madison County Recorder's Office subsequent to the date when such mortgage was filed of record in that office and shall take flee of any claims for unpaid assessments or charges for which no notice of lien has been filed and which have accrued prior to the time when such holder comes into possession of such parcel. Assessments shall be deemed to accrue and become due periodically as assessed and not annually, and assessments becoming due subsequent to when the holder of such mortgage comes into possession of such parcel may be secured by the creation of a lien against such parcel as provided in Section 6.7 hereof. ARTICLE 7 USE OF THE PROJECT 7.1 Owner's Obligation to Maintain and Repair. Each owner at such owner's expense, shall keep such owner's parcel in good order, condition and repair and in a clean and sanitaiy condition, and shall do all repairs, redecorating and painting which may at any time be necessary to maintain the good appearance of such owner's parcel. Each owner shall repair all damage or injury to such owner's parcel with a quality and kind equal to the original work. No owner shall replace the exterior surfaces of the unit except with a material approved as to type, color and quality by the Association, comparable in quality and matching to the extent possible the existing appearance of the other units. 7.2 Taxation. 19- Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws Each parcel is subject to a separate assessment and taxation by each taxing authority. The property will not b of s a whole, but each owner will pay all taxes assessed against such owner's pard— s' 7.3 Single Family. Each of the parcels shall be occupied only by one family and guests, as a private residence and for no other purpose. No parcel may be divided or subdivided into a smaller parcel. 7.4 Common Use. Subject to the limitations contained in this Declaration, each owner shall have the nonexclusive right to use and enjoy the easement property for the purposes for which they are intended. 7.5 No Nuisance. No use or practice shall be perinitted which is a source of annoyance or which interferes with the peaceful possession and proper use of the property. All parts of the property shall be kept in a clean and sanitary condition, and no rubbish, refuse, or garbage shall be allowed to accumulate nor any fire hazard to exist. All garbage placed outside is required to be contained in closed containers. Garbage can be placed curbside either the night before or morning of garbage pickup. No immoral, improper, offensive or unlawful use shall be made of any part of the property. 7.6 Use of Easement Property, Fence. A parcel owner may, upon approval of the design by the Association, as provided in paragraph 3.5 (e), enclose the easement property directly behind the building on the parcel with a fence not to exceed six (6) feet in height. The enclosed area shall then become limited area private to the parcel owner and maintained by the Association only if gates and access are readily available to the maintenance crews. If the fenced area is not accessible the parcel owner will be responsible to maintaining that portion. Gates must be a minimum of four (4) feet wide. 7.7 Leasing of Parcels. The owners of the respective parcels shall have absolute right to lease the respective residential units. However, such lease is subject to the covenants and conditions of this Declaration and any rules and regulations made by the Association. Any breach of these covenants and conditions or of these rules and regulations shall constitute a default under the lease. An owner shall not lease only a portion of the unit, nor shall any lease be of a 20- Declaration of OCR's for The Legacy Townhomes of Rexburg with Bylaws shorter term than three months. 7.8:1Signs, Antennas and Satellite Dishes. t No signs or advertisements shall be displayed on or from any parcel without the written approval of the Board of Directors. No large antennas or towers shall be mounted on the rear of the building or on the roof of any unit on any parcel. 7.9 -Joint Repairs. If a part of the exterior of a building on a parcel needs maintenance, repair or replacement and the Association reasonably determines that such work is most expeditiously done in connection with that similar repairs on an adjoining parcel, the Association may require the owner of the adjoining parcel to perfonn the repairs and if the adjoining owner fails or refuses to perfonn such repairs, the Association may perfonn it and assess the cost thereof to the adjoining owner which assessment shall be a lien upon the adjoining owner's parcel and subject to the same collection rights in the Association as liens for assessments. 7.10 Joint Sewer and Water Connections. When two parcels share a common sewer or water lateral into the street the two common parcel owners share the responsibility for its maintenance. If the line should be plugged, require replacement, or any hazard the two owners will mutually share the cost of maintenance. 7.11 Animals and Owner Pets. Homeowners are pennitted to have pets and small animals. The animals must be kept on or in the owner's own parcel. The animal may not cause noise or nuisance for the other association owners. If the animal becomes a nuisance, is pennitted to roam freely, or causes bothersome noise, the owner will be issued one warning letter and then will not be pennitted to keep the animal on the premise. 7.12 Fencing of the Individual Parcels. All fencing must meet the zoning ordinances and building codes of the City of Rexburg, Madison County, and the State of Idaho. The individual owners may only place white vinyl fencing or white powdered -coated metal on any side of their- property that adjoins another association member. No fence shall exceed six (6) feet in height. Each gate must be a minimum of four (4) feet wide. All fencing must have written approval of the Board of Directors before construction. Existing non -conforming fences may be repaired, but any replacement must confonn to the covenants. Chain link dog -runs or wire pens are 21- Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws prohibited unless contained in a fully enclosed fenced yard. The enclosed fencing must be equal to or higher than the dog run or wire pen. 7.13 Withdrawal from Lawn Maintenance and Snow Removal. Individual parcel owners may withdraw orn the lawn maintenance and snow removal portion of the Association. They m ioveir own lawns and remove their own snow .: - and not pay into the Association for such maintenance. To withdraw, owners must submit a written waiver to any officer before September 30' of the next year in which they will withdraw. Any owner who has not submitted a written withdrawal by September 30`h is required to pay the lawn maintenance and snow removal fees for that next year. The property must be mowed weekly, weeds controlled and fertilized three (3) times a year with proper watering. The property must be kept clean and neat appearance or the other owners may have the property included in the landscape maintenance contract and assess fees equal to all other parcels. ARTICLE 8 AMENDMENT 8.1 Amendments. This Declaration may be amended upon two-thirds (2/) vote of these owners in attendance at a duly called and constituted special meeting of the Association or by written resolution signed by two-thirds of all parcel owners. Any amendment shall be recorded in the Madison County Recorder's Office, State of Idaho, and shall be accompanied by a certificate of the Secretary of the Association certifying the manner of the adoption of said amendment. Also, a copy of said amendment shall be sent to each owner. Thereafter the amendment shall be binding upon each owner, whether the burdens thereof are increased or decreased thereby or whether the owner of a particular parcel consented thereto. Provided, however, unless the mortgagees and all owners of the parcel have given their prior written approval, no amendment shall be made which changes the pro rata interest or obligation of any parcel for purposes of levying assessment and charges for the Association expenses or changing the manner in which taxes are assessed against the parcels. ARTICLE 9 CONSTRUCTION 9.1 Severability. In the event that a phrase, sentence, clause, paragraph or article contained in this Declaration should be invalid or should operate to render this Declaration or any of of its provisions invalid, this Declaration shall be construed as if such invalid phrase, sentence, 22- Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws clause, paragraph or article has not been inserted. 9.2 Gender and Number. The singular, wherever used in this Declaration, shall be construed to mean the plural, and the masculine, wherever used in this Declaration, shall be construed to mean the feminine, when applicable and as required by the context, and all necessary grammatical changes required to make the provisions of this Declaration to fully apply either to corporations or individuals, or to men or women, shall in all cases be assumed as though in each case fully expressed. 9.3 Waivers. No provision contained in this Declaration shall be deemed to have been waived by reason of any failure to enforce such provision, irrespective of the number of violations that may occur. 9.4 Topical Beadings. The topical headings of the articles and paragraphs contained in this Declaration are for convenience only and do not define, limit or construe the contents of the articles or paragraphs or of this Declaration. 9.5 Effective Date. This Declaration shall take effect upon recording. In Witness Whereof, the Declarant has hereunto set its hand and official seal this day of , 2002. Developer and Current Owner of the Legacy Townhomes of Rexburg: Rees & Jenks Development, LLC: By By Anthony N. Jenks, Manager Brandon M. Jenks, Manager 23- Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws Mark D. Rees, Manager Approved by: Legacy Townhomes of Rexburg Homeowner's Association: as Secretary President ACKNOWLEDGMENTS STATE OF IDAHO ) SS. County of Bonneville ) On this day of , 2002, before me, the undersigned, a Notary Public in and for said State, personally appeared Anthony N. Jenks, as a Manager of Rees & Jenks Development, LLC, known to me to be the person who executed the within instrument, and acknowledged to me that he executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. (SEAL) Notary Public for Idaho Residing at: Idaho Falls, Idaho My Commission Expires: 24- Declaration of OCR's for The Legacy Townhomes of Rexburg with Bylaws STATE OF IDAHO ) ) ss. County of Bonneville ) On this day of , 2002, before me, the undersigned, a Notary Public in and for said State, personally appeared Brandon M. Jenks, as a Manager of Rees & Jenks Development, LLC, known to me to be the person who executed the within instrument, and acknowledged to me that he executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. (SEAL) STATE OF IDAHO ) ) ss. County of Bonneville ) Notary Public for Idaho Residing at: Idaho Falls, Idaho My Commission Expires: On this day of , 2002, before me, the undersigned, a Notary Public in and for said State, personally appeared Mark D. Rees, as a Manager of Rees & Jenks Development, LLC, known to me to be the person who executed the within instrument, and acknowledged to me that he executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. (SEAL) Notary Public for Idaho Residing at: Idaho Falls, Idaho My Commission Expires: 25- Declaration of CCR's for The Legacy Townhomes of Rexburg with Bylaws STATE OF IDAHO ss. County of Bonneville On this day of 2002, before me, the undersigned, a Notaiy Public in and for said State, personally appeared and , as the President and Secretary, respectively of The Legacy Townhomes of Rexburg, known to me to be the persons who executed the within instrument, and acknowledged to me that they executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. (SEAL) sT\dds 4444\Protective Covenants Notaiy Public for Idaho Residing at: Idaho Falls, Idaho My Commission Expires: 26- Declaration of OCR's for The Legacy Townhomes of Rexburg with Bylaws