Miramont Village Homeowners Association

Declaration of Covenants

Miramont Village Homweowners Association

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF
MIRAMONT VILLAGE P.U.D. A PLANNED COMMUNITY IN
THE COUNTY OF LARIMER, STATE OF COLORADO
This Declaration is made on the date hereinafter set forth. by James Construction Co., Inc., a Colorado Corporation hereinafter referred to as "Declarant".

RECITALS:
A. Declarant is the owner of certain Real Estate located in the County of Larimer, State of Colorado, which is more particularly described as set forth in Exhibit A, attached hereto and incorporated herein by reference; and
B. Declarant desires to create a Common Interest Community on the Real Estate described in Exhibit A, the name of which is Miramont Village P.U.D., in which portions of the Real Estate described in Exhibit A will be designated for separate ownership and the remainder of which will be designated as Common Elements to be used by the Owners, but owned by the Association; and
C. Declarant has caused to be incorporated under the laws of the State of Colorado. Miramont Village Homeowners Association, Inc., a non-profit corporation for the purpose of exercising the functions as hereinafter set forth.
ARTICLE I
SUBMISSION: DEFINED TERMS
SECTION 1.01 Submission of Real Estate. Declarant hereby declares that all the real estate set J forth and described in Exhibit A hereto shall be held or sold and conveyed subject to the CM following casements, restrictions, covenants, and conditions, which are for the purpose of protecting the value and desirability of. and which shall run with the real estate and be binding on all panics having any right, title, or interest in the real estate or any pan thereof, their heirs, legal representatives, successors, and assigns, and shall inure to the benefit of each Owner. Additionally. Declarant hereby submits the real estate to the provisions of the Colorado Common Interest Ownership Act. Sections 38-33.3-101 Colorado Revised Statutes, as it may be amended from time to time (the "Act') in the event the Act is repealed, the Act. on the effective ^) date of this Declaration, shall remain applicable.
SECTION 1.02 Defined Terms. Each term, whether capitalized or not, which is not otherwise defined in this Declaration or in the Plat shall have the meaning specified or used in the Act.
ARTICLE II
NAMES: DESCRIPTION OF REAL ESTATE
SECTION 2.01 Names

(a) Planned Community: The name of the Planned Community is Miramont Village

(b) Association: The name of the Association is Miramont Village Homeowners Association, Inc., a Colorado non-profit corporation.

SECTION 2.02 Real Estate. The Planned Community is located in the County of Larimer. State of Colorado. The real estate of the Planned Community is described in Exhibit A.
ARTICLE III
UNITS

SECTION 3.01 Number of Units. The Declarant reserves the right to create a maximum of 52 Units in the Planned Community. Declarant shall not, however, be obligated to create more than the 12 Units located on Lots 1 through 12 and complete construction of the necessary improvements on Tract A from only the southeast border of Lot 27 to the east end of the Planned Community and Tracts B and F on the real property set forth on Exhibit A in the Planned Community.
SECTION 3.02 Division of Property into Lots for Units> and Tracts.
(a) The real estate described in Exhibit A. attached hereto and incorporated herein by this reference, including the improvements thereon, is hereby divided into 52 fee simple absolute estates, herein referred to as Units and 6 Tracts lettered A through F.
(b) Each Unit is described on the Plat which is by this reference made a part hereof. Each Unit shall be identified on the Plat by the Unit number as shown thereon, and as further described in Section 4.01, below.
SECTION 3.03 Title to a Unit. Title to a Unit may be held or owned by any person or entity in any manner in which title to real estate may be held or owned in the State of Colorado.

SECTION 3.04 Transferability. Except as hereinafter expressly provided to the contrary, title to any Unit shall be freely transferable in accordance with applicable law; and sale thereof shall not be subject to any right of first refusal, first option to purchase, or other similar restriction in favor of any Owner, the Association or Declarant.

SECTION 3.05 Nonpartitionabilitv. The Common Elements shall be owned by the Association and shall remain undivided. No Owner shall be entitled to bring any action for partition or division of the Common Elements.

SECTION 3.06 Use of Common Elements. Each Owner shall be entitled to exclusive ownership and possession of the Owner's Unit. Each Owner has the non-exclusive right to use the Common Elements in accordance with the purposes for which any such elements are intended without hindering or encroaching upon the lawful rights of the other Owners.

SECTION 3.07 Easements for Encroachments. In the event any portion of the Common Elements encroaches upon any Unit or any Unit, driveway or roof cave encroaches upon the Common Elements or another Unit as a result of the construction, reconstruction, repair. shifting, settlement, or movement of any portion of the improvements, or any encroachments resulting from repair, or reconstruction after damages, partial or full destruction of the improvements, a valid casement for the encroachment and for the repair and maintenance of the same shall exist in favor of the Unit Owner whose improvements are encroaching or the Association so long as the encroachment exists. Such encroachments and casements shall not be considered or determined to impair or otherwise adversely affect the marketability of title to either the Common Elements or the Units.

SECTION 3.08 Easements for Utilities. Easements for the installation, transmission, repair and replacement of water, sewer, gas, telephone, cable t.v. and electric utility lines to each individual Unit within the Planned Community are hereby reserved through, over and under the Common Elements and any Unit or any portion thereof that may be necessary to provide water. sewer, gas, communication and electric utility service from any common meter to any Lot or Unit within the Planned Community. Said casement may be under ground, above ground or through the improvements constructed on any Unit as shall be determined by Declarant. Additionally, casements for repair and replacement for sewer and water lines over. under and across the Units and all Common Elements of the Planned Community are hereby reserved in order to provide sewer and water utility service to each Unit within the Planned Community.
SECTION 3.09 Owner's Right to Ingress and Egress and Support. Each Owner shall have the right to ingress and egress over, upon, and across the Common Elements necessary to access to his of her Unit, and shall have the right to lateral support of his or her Unit.
SECTION 3.10 Reservation of Development Easement. The Declarant, for itself, its successors and assigns, reserves unto itself an casement over, across and beneath the property described in Exhibit A, for access, ingress, and egress for the development, construction, repair, maintenance, and general use in connection with construction of the original 12 Units, Additional Improvements or additional Units within the Planned Community.

SECTION 3.11 Association's Rights to Use of Common Elements. The Association shall have a non-exclusive right and easement to make such use of the Common Elements as may be necessary or appropriate to perform the duties and functions which it is obligated or permitted to perform pursuant to this Declaration.
SECTION 3.12 Driveway Easements. For every Lot upon which improvements arc constructed which include a side loaded garage, there shall be a three (3) foot wide easement for access and the encroachment of a driveway as well as for the repair and maintenance of said driveway over and across the adjacent Lot
SECTION 3.13 Maintenance Responsibility for Exterior of Unit. Courtyard and Garage of Unit.

(a) Each owner of a Unit shall be responsible for the exterior maintenance of such Owner's Unit. Such exterior maintenance shall include, but shall not be limited to the painting repairing and replacement of the exterior and roof, gutters, down spouts and exterior building surfaces, including all glass surfaces. In the event any Owner fails to adequately maintain the exterior of said Owner's Unit, the Association shall have the right to maintain the exterior of said Unit, and the cost of such exterior maintenance shall be paid by the Owner to the Association, and if not, the same shall become an individual assessment under Section 7.07 hereof and may further become a lien pursuant to Sections 7.01 and 7.07 hereof.


(b) An owner shall be responsible to keep in a neat and clean condition the outside areas, including the Dog Run Area. if constructed, of the Unit.


(c) The Owner shall maintain the Owner's garage in a clean, attractive, safe and sightly condition, and shall use such garage area solely for the storage of the Owner's property and the parking of the Owner's automobile or other vehicles. Each Owner's garage door shall remain closed when not in use.

SECTION 3.14 Owner's Duty of Compliance. Each Owner shall comply strictly with the provisions of this Declaration, the provisions of the Articles of Incorporation and By-laws of the Association, and the decisions and resolutions of the Association adopted pursuant thereto as the same may be lawfully amended from time to time. Failure to comply shall be grounds for an action to recover sums due and for damages or injunctive relief or both, maintainable by the managing agent, the Executive Board or the Association on behalf of the Owners or, in a proper case, by an aggrieved Owner. In the event that the Association must expend any sums for clean up, repair, attorneys' fees and costs for such Owner's failure to comply, the Owner shall be responsible to reimburse the Association for its expenses, which may be individual assessments under Section 8.07 below. Such items may become a lien as described in Sections 8.01 and 8.07 below.

SECTION 3.15 Easements Deemed Created. All conveyances of Units hereafter made. whether by Declarant or otherwise, shall be construed to grant and reserve such reciprocal easements as shall give full effect to Sections 3.06, 3.07, 3.08, 3.09, 3.10, 3.11 and 3.12 hereinabove, even though no specific reference to such easements or to those Sections appear in any such documents of conveyance.
ARTICLE IV
DESCRIPTION OF A UNIT

SECTION 4.01. After the Declaration and Plat shall have been filed for record in Larimer County, Colorado, every contract for the sale of a Unit may describe that Unit by the designation shown on the Plat with the appropriate reference to the Plat and to this Declaration, as each shall appear on the records of the County Clerk and Recorder's Office of Larimer County, Colorado, in the following fashion:

Lot _, Miramont Village P.U.D., as shown on the Plat for Miramont Village P.U.D.. Recorded on ______, 1996, at Reception No. _____, and as denned by the Declaration of Covenants, Conditions and Restrictions, recorded on ____, 1996, at Reception No. __________.

Reception No. ______.
Such description will be construed to describe the Unit, and to incorporate all the rights incident to ownership of a Unit and all the limitations on such ownership as described in this Declaration. In the event of amendment of the Declaration and/or Plat. such amendments shall be reflected by the additional recording information including date of recording, reception numbers and, in the case of the Plat, plan file numbers.
ARTICLE V
TERMINATION OF MECHANIC'S LIEN RIGHTS AND INDEMNIFICATION

SECTION 5.01 Mechanic's Liens. Subsequent to the completion of the construction to be performed by Declarant, no labor performed or materials furnished and incorporated in a Unit with the consent or at the request of the Owner thereof or the Owners' agent, contractor or subcontractor shall be the basis for filing of a lien against the Unit of any other Owner not expressly consenting to or requesting the same, or against the Common Elements. Each Owner shall indemnify and hold harmless each of the other Owners and the Association from and against all liability arising from the claim of any lien against the Unit of any other Owner or against the Common Elements for construction performed or for labor, materials, services, or other products incorporated in or otherwise attributable to the Owner's Units at such Owner's request.
ARTICLE VI
THE ASSOCIATION

SECTION 6.01 Authority. The business affairs relating to the Common Elements of the Planned Community shall be managed by the Association, a Colorado non-profit corporation. The Association shall be governed by its by-laws as amended from time to time.

SECTION 6,02 Membership. Every Owner of a Unit shall be entitled and required to be a member of Miramont Village Homeowners Association, Inc. An Owner shall be entitled to one membership for each Unit owned. Where ownership of a Unit is held by more than one person, the membership corresponding to that Unit shall be held by such persons in accordance with their respective ownership interests in the Unit. No person or entity other than an Owner may be a member of the Association, and memberships may not be transferred except in connection with the transfer of a Unit; provided, however, that the rights of membership may be assigned to the mortgagee of a Unit as security for a loan secured by a deed of trust on the Unit.

SECTION 6.03 Voting Rights. The Association shall have one class of membership. Each membership shall be entitled to one vote. If two individuals own a Unit. as joint tenants, tenants in common, or other legal manner of holding title, and cannot agree between themselves on one or more matters coming before the Association, then each shall be entitled to one-half vote. If three or more individuals or entities own a Unit as joint tenants, or tenants in common, or other legal manner of holding title, and cannot agree among themselves on one or more matters coming before the Association, then the Owners shall agree among themselves prior to recordation of the vote how the vote shall be cast; however, in no event shall less than one-half vote be cast. In no event shall more than one total vote be cast for each Unit.
SECTION 6.04 Powers of Association: Management and Control of Common Elements.
(a) The Association shall, subject to the rights and duties of the Owners set forth in Article III hereof, have all the powers, authority and duties permitted pursuant to the Act necessary and proper to manage the business and affairs of the Planned Community and shall be responsible for the exclusive management and control of the Common Elements. Unless contained within the annual budget or provided for by Reserve Funds as set forth in Section 7.08 hereof, the Association must have the approval of a majority of the Unit Owners for any single maintenance and repair expense of over $2,500.00. The cost of such management, operation, maintenance, and repair shall be borne as provided in Article VII hereunder.
(b) In addition to the Easements for Utilities reserved under Section 3.08 hereof, the Association shall have the right to grant additional easements as necessary for utility purposes over, under, upon or through any portion of the Common Elements, and through, under or across all Units within the Planned Community to provide necessary utilities and for the repair and replacement thereof to the Units themselves or the Common Elements, and is hereby irrevocably appointed as attorney-in-fact for each Owner for such purposes.
(d) The Association shall not have the right to stop, hinder, delay, block or in any manner impair the right of ingress and egress of the Declarant, its successors and assigns, over and across the roadways and sidewalks, or other Common Elements.

SECTION 6.05 Street. Sidewalk and Landscape Maintenance. The Association shall be responsible for the maintenance, repair and replacement of all streets and the sidewalks abutting said streets within the Planned Community. The Association shall also be responsible for the Maintenance and care of all landscaping within the Planned Community except within any Dog Run Area of each Unit. Each Unit shall have an individual automatic sprinkler system for the lawn on said Unit. The cost of the water used by the sprinkler system shall be the responsibility of each Unit Owner SEE NOTE. The Association shall have the right to control each automatic sprinkler system timer located on each Owner's Unit in order to regulate and control the time and frequency of lawn watering on each Unit. The repair and maintenance of the sprinkler systems shall be the responsibility of the Association, unless any Owner, through willful or negligent acts of said Owner, or the guests, invitees or employees of said Owner causes damage thereto, in which case the cost to repair said Owner's sprinkler system shall be paid by the Owner to the Association, and if not, it may become an individual assessment under Section 7.01 hereof and may further become a lien pursuant to Sections 7.01 and 7.07 hereof.

Note: An amendment to this section removed the requirement for individual automatic sprinkler system, and set up a central sprinkler system for all yards and landscaping. Also the cost of the water was transferred to the HOA with a corresponding increase in monthly fees.
SECTION 6.06 Snow Removal. The Association shall be responsible for all snow plowing and snow removal from all streets, driveways and sidewalks within the Planned Community. The streets and driveways shall be plowed upon the accumulation of three or more inches of snow, and the sidewalks shall be plowed or shoveled upon the accumulation of one or more inches of snow.

SECTION 6.07 Adoption of Budget. Within 30 days after adoption of any proposed budget for the Planned Community, the Executive Board shall mail, by ordinary first class mail, or otherwise deliver a summary of the budget to all the Unit Owners and shall set a date for a meeting of the Unit Owners to consider ratification of the budget not less than 14, nor more than 60, days after mailing or other delivery of the summary. Unless at that meeting 67% of all Unit Owners reject the budget, the budget shall be ratified whether or not a quorum is present at such meeting. In the event that the proposed budget is rejected, the periodic budget last ratified by the Unit Owners shall be continued until such time as the Unit Owners ratify subsequent budget proposed by the Executive Board.

SECTION 6.08 Management of Association.
(a) The Association may obtain and pay for the services of any person or entity to manage its affairs, or any part thereof, to the extent it deems advisable, as well as such other personnel as the Association shall determine to be necessary or desirable for the proper operation for the Planned Community whether such personnel are furnished or employed directly by the Association or by any person or entity with whom or which it contracts. The Association may obtain and pay for legal and accounting services necessary or desirable in connection with the operation of the Planned Community or the enforcement of this Declaration.
(b) Any agreement for management of the Common Elements or for any other services to be performed by the Declarant shall provide for termination by cither party without cause or payment of any termination fee on thirty (30) days or less written notice. No such agreements shall be entered into for a term exceeding one (1) year.
SECTION 6.09 Personal Property for Common Use. The Association may acquire and hold for the use and benefit of all of the Owners' tangible and intangible personal property and may dispose of the same by sale or otherwise.
SECTION 6.10 Rules and Regulations. The Association may make reasonable Rules and Regulations governing the use of the Units and of the Common Elements, which Rules and Regulations shall be consistent with the rights and duties established in this Declaration. The Association may suspend any Owner'1 voting rights in the Association during any period or periods during which such Owner fails to comply with such Rules and Regulations, or with any other obligations of such Owner under this Declaration. The Association may also take judicial action against any Owner to enforce compliance with such Rules and Regulations or other obligations or to obtain damages for non-compliance with any term, covenant or condition ^ contained in this Declaration, all to the extent permitted by law.

SECTION 6.11 Parking Regulations. The Association shall have the right to establish rules and regulations regarding all parking within the Common Elements of the Planned Community. The Association shall further have the right to tow or cause to be towed illegally or Improperly parked vehicles within the Planned Community^

SECTION 6.12 Trash Collection. The Association shall have the right to designate a single trash collection company, which company shall have the exclusive right to collect trash within the Planned Community. The payment for trash collection shall remain the obligation of each individual Unit Owner subject to the provisions of Section 12.05 hereof. In the event the Association docs appoint a single trash company for collection of all trash within the Planned Community, no Unit Owner may contract for trash pickup and removal from any other company without the prior written approval of the Executive Board of the Association.

SECTION 6.13 Inspection of Books and Records. All Unit Owners shall have reasonable access to inspect the books, records, and financial statements of the Association. Any mortgagee or insurer of any mortgage affecting a Unit shall be entitled, upon request, to: (a) inspect the books and records of the Association during normal working hours; (b) require the preparation of and, if preparation is required, receive an annual audited financial statement of the Association, except that such a statement need not be furnished earlier than 90 days following the end of the Association's fiscal year; and, (c) written notice of all meetings of the Association and be permitted to designate a representative to attend all such meetings.
SECTION 6.14 Implied Rights. The Association may exercise any other right or privilege given to it expressly by this Declaration or by the Act, and every other right or privilege reasonably to be implied from the existence of any right or privilege given to it herein or reasonably necessary to effectuate any such right or privilege. Notwithstanding the above, unless at least seventy-five percent (75%) of the first mortgagees of Units (based on one vote for each first mortgage owned or held) have given their prior written approval, the Association shall not be empowered or entitled to:
(a) by act or omission, seek to abandon or terminate the Planned Community;
(b) partition or subdivide any Unit;
(c) by act or omission, seek to abandon, partition, subdivide, encumber, sell, or transfer the Common Elements;
(d) use hazard insurance proceeds for loss to the improvements for other than me repair, replacement, or reconstruction of such improvements.
SECTION 6.15. The Association may assign its future income, including its rights to receive Common Expense Assessments, only by the affirmative vote of the Owners of Units to which at least 75% of the votes of the Association are allocated, at a meeting called for that purpose.

SECTION 6.16 Declarant Control. The Declarant shall have all the powers reserved in Section 38-33.3-303(5) of the Act to appoint and remove officers and members of the Executive Board of the Association during the Declarant Control Period.

ARTICLE VI
COVENANT FOR COMMON EXPENSE ASSESSMENTS
SECTION 7.01 Creation of Association Lien and Personal Obligation to Pay Common Expense Assessments.

(a) Declarant, only for each Unit upon which construction of improvements hive been completed, shall be deemed to covenant and agree, and each Owner, by acceptance of a deed therefore, whether or not it shall be so expressed in any such deed or other conveyance, shall be deemed to covenant and agree to pay to the Association the annual Common Expense Assessments, which assessments, including fees, charges, late charges, attorney's fees, fines and interest charged by the Association shall be the personal obligation of the Owner at the time when the assessment or other charges became or fell due. The personal obligation to pay any past due sums due to the Association shall not pass to a successor in title unless expressly assumed by them.

(b) The Common Expense Assessment of the Association shall be a continuing lien upon the Unit against which each such assessment is made. A lien under this Section is prior to all other liens and encumbrances on a Unit except:
(1) liens and encumbrances recorded before the recordation of the Declaration;
(2) a first lien Security Interest on the Unit recorded before the date on which the Common Expense Assessment sought to be enforced became delinquent; and
(3) liens for real estate taxes and other governmental assessments or charges against the Unit.
This Section does not prohibit an action to recover sums for which this Section creates a lien or prohibit the Association from taking a deed in lieu of foreclosure. Sale or transfer of any Unit shall not affect the Association's lien except that a sale or transfer of any Unit pursuant to foreclosure of any first lien Security Interest, or any proceeding in lieu thereof, including deed in lieu of foreclosure, or cancellation or forfeiture shall only extinguish the Association's lien as provided in the Act. No such sale, transfer, foreclosure, or any proceeding in lieu thereof, including deed in lieu of foreclosure, nor cancellation or forfeiture shall relieve any Unit from continuing liability for any Common Expense Assessments thereafter becoming due. nor from the lien thereof.

SECTION 7.02 Purpose of Assessments. The Assessments levied by the Association through its Executive Board shall be used for the purposes of promoting the health, safety, and welfare of the residents in the Planned Community and for the maintenance and repair of the Tracts. including, but not being limited to, repair and maintenance of all streets and sidewalks, snow removal, landscaping maintenance as set forth in Section 6.05.

SECTION 7.03 Annual Assessment/Commencement of Common Expense Assessments. The Common Expense Assessment shall be made on an annual basis against all Units upon which construction of improvements have been completed and shall be based upon the Association's advance budget of the cost requirements needed by it to provide for the administration and performance of its duties during such assessment year. Common Expense Assessments may be collected in the manner as determined by the Executive Board. Common Expense Assessments shall begin on the first day of the month in which the conveyance of the first Unit to an Owner other than Declarant occurs.
SECTION 7.04 Notice of Annual Assessments and Time for Payment Thereof.

(a) The Association shall give written notice to each Owner as to the amount of the annual assessment with respect to said Unit on or before December 1 each year for the fiscal year commencing on the following January 1st. Upon request, a first mortgagee of any Unit shall also be given such written notice. Such assessments shall be due and payable in equal monthly installments, due and payable by the first day of each month. Failure of the Association to give timely notice of any assessment as provided herein shall not affect the liability of the Owner of any Unit for such assessment, but the date when payment shall become due in such a case shall be deferred to a date thirty (30) day* after such notice shall have been given. The monthly installment shall be deemed to be in default if payment is not received by the Association by the 10th day of the month in which the installment became due. The unpaid installment shall bear interest at such rate as may be determined by the Executive Board, however, in no event shall interest exceed 18% per annum from the First day of the month in which it became due until paid in full. Any default upon an installment obligation may. at the election of the Association, be deemed to be a default on the entire remaining balance of the annual assessment of the respective Unit, and in such case, the Association may declare the remaining balance immediately due and payable and obtain satisfaction therefore as hereinafter provided or by any other legal means. Such assessment shall first commence on the date that the first Owner received the deed for the Owner's Unit. Such assessment shall be based on an annual budget prepared by the Declarant prior to such first closing. Such budget shall be submitted by Declarant to any mortgagee. insurer or guarantor requesting such budget prior to the first annual assessment. Such budget shall remain in effect until the first annual assessment shall be made by the Association. Both annual and special assessments shall be fixed at a uniform rate for all Units.
(b) In the event that Additional Improvements are constructed within the Planned Community, the assessments shall commence as to those new Units to be annexed on the later of the date on which the annexation or amendment documents are recorded with the Clerk and Recorder of Larimer County or the date that the first Owner receives a deed to a Unit. The amount to be assessed shall be based upon the Association's latest annual assessment, divided by twelve and shall be payable by the Owner in equal monthly installments for the remainder of the year.
SECTION 7.05 Maximum Annual Assessment. Until January 1 of the year immediately following the conveyance of the first Unit to an Owner, the maximum annual assessment per Unit subject to assessment shall be One Hundred and NO/lOOths Dollars ($100.00) per Unit per month ($1.200.00 per year).
(a) From and after January 1 of the year immediately following the conveyance of the first Units of the original group of 12 Units constructed by Declarant to an Owner, the maximum annual assessment may be increased each year by not more than five percent (5%) above the maximum assessment for the previous year without a vote of the Members.
(b) From and after January 1 of the year immediately following the conveyance of the first Units of the original group of 12 Units constructed by Declarant to an Owner, the maximum annual assessment may be increased above five percent (5%) by a vote of sixty-seven percent (67%) of the Members at a meeting dually called for that purpose.
(c) The limitation contained in this paragraph shall not apply to any change in the maximum and basis of assessments undertaken as an incident to construction of Additional Improvements, annexation, merger or consolidation in which the Association is authorized to participate under this Declaration or its Articles of Incorporation.
(d) The Executive Board may fix the annual assessment at an amount less than the maximum amount provided for herein.
S


SECTION 7.06 Special Assessments for Capital Improvements. In addition to the annual assessments authorized by this Article, the Association, upon approval of sixty-seven percent (67%) of the Owners, may levy in any assessment year a special assessment, payable over such a period as the Association may determine, for the purpose of defraying, in whole or in part, the cost of any construction, unexpected repair of any Common Element or any part thereof, or for any other expenses incurred or to be incurred as provided in the Declaration. Special assessments for capital improvements, so long as the Developer controls the Planned Community, in addition to the sixty-seven (67%) majority stated above, will also require the written consent of the Federal housing Authority. This section shall not be construed as an independent source of authority for the Association to incur expenses, but shall be construed to prescribe the manner of assessing for expenses authorized by other Sections hereof which shall make specific reference to this Article. Any amounts assessed pursuant hereto shall be assessed to Owners in proportion to the number of Units owned by each. Notice in writing of the amount of such special assessments and the time for payment thereof shall be given promptly to the Owners, and no payment shall be due less than thirty (30) days after such notice shall have been given.
SECTION 7.07 Individual Assessments/Fines.

(a) The Executive Board or the Association shall have the right to assess against any Owner individually the amount as provided for in this Declaration, to include, but not being limited to. charges assessed under Sections 3.13. 3.14, 5.01 and 12.03 hereof.


(b) If adopted by the Association at a regular or special meeting of the Owners, the Executive Board shall have the right to assess a fine upon due notice and an opportunity to be heard before the Executive Board at a regular or special meeting of the Executive Board, against an Owner in an amount not exceeding one hundred dollars ($100.00) for each violation of this Declaration, the By-Laws, the Rules and Regulations, and the Articles of Incorporation of the Association. Such fines may be assessed additionally for each day the violation continues after written notice thereof is given the Owner.

(c) Any individual assessment or fine shall become a lien pursuant to the procedures provided in Section 7.01 above.

SECTION 7.08 Reserve Funds. The Association shall, upon its inception, establish an adequate reserve fund for the periodic maintenance, repair, and replacement of the Common Elements over which it has care, custody, and control, and for repair and replacement of all exterior maintenance required to be performed by the Association which fund shall continuously be maintained out of the annual assessment for Common Expenses.
SECTION 7.09 Working Fund. The Association or Declarant shall require the first Owner of each Unit (other than Declarant) and each subsequent Owner to make a non-refundable payment to the Association in an amount equal to one-sixth of the annual Common Expense Assessment against that Unit in effect at the closing thereof, which sum shall be held, without interest, by the Association, as a Working Fund. Said Working Fund shall be collected and transferred to the Association at the time of closing of the sale by Declarant of each Unit as aforesaid and shall be maintained for the use and benefit of the Association. Such payment shall not relieve an Owner from making regular payments of assessments as the same become due. Upon the transfer of a Unit, an Owner shall be entitled to a credit from his transferee for any unused portion of the aforesaid Working Fund.

SECTION 7.10 Effect of Non-Payment of Assessments. Any assessment, charge or fee provided for in this Declaration, or any monthly or other installment thereof, which is not fully paid within 10 days after the due date thereof shall bear interest at the rate as determined by the Executive Board and the Association may assess a late charge thereon. Further, the Association may bring an action at law or in equity, or both, against any Owner personally obligated to pay such overdue assessment, charges, or fees, or monthly or other installments thereof, and may also proceed to foreclose its lien against such Owner's Unit. An action at law or in equity by the Association against an Owner to recover a money judgement for unpaid assessments, charges, or fees, or monthly or other installments thereof, may be commenced and pursued by the Association without foreclosing, or in any way waiving the Association's lien therefore.

ARTICLE VIII
ARCHITECTURAL CONTROL

SECTION 8.01.


(a) No building, fence, wall. Dog Run Area or other structure or improvement shall be commenced, erected or maintained upon any Unit within the Planned Community, nor shall any exterior addition to, change or alteration therein be made, nor shall the color of any Unit be made, until the plans and specifications showing the nature, kind. shape, height, materials, location and color scheme of the same shall have been submitted to and approved in writing as to harmony of external design, location and color scheme in relation to surrounding structures and topography by the Executive Board of the Association, or by an architectural committee composed of three (3) or more representatives appointed by the Executive Board. In the event said Executive Board, or its designated committee. fails to approve or disapprove such design, location and color scheme within thirty (30) days after said plans and specifications have been submitted to it, approval will not be required and this Article will be deemed to have been fully complied with.

(b) Neither Declarant, its successors or assigns, the Executive Board nor the Architectural Control Committee shall be liable in damages to anyone submitting plans to them for approval, or to any Owner effected by this Declaration, by reason of mistaken judgment, negligence or non-feasance arising out of or in connection with the approval or disapproval or failure to approve any such plans and specifications. Every person who su bmits plans for approval agrees, by submission of said plans and specifications, and every Owner of any Lot within the Planned Community, by acquiring title thereto or an interest therein, that the Owner will not bring any action or suit against Declarant, its successors or assigns. the Executive Board or the Architectural Control Committee to recover any such damages.

ARTICLE IX
ALLOCATED INTEREST
SECTION 9.01 Allocated Interests. The Common Expense liability and votes in the Association allocated to each Unit shall be calculated as follows:
(a) The percentage of liability for Common Expenses shall be determined by a fraction the numerator of which shall be one (1) and the denominator of which shall initially be 12, representing the Units in the Planned Community as shall be originally constructed by Declarant.
(b) In the event Declarant exercises its development rights and adds Additional Improvements as herein set forth, the denominator shall be increased according to the total number of Units actually constructed by the recording of an amendment to the Declaration, up to a maximum of 52.
(c) The number of votes in the Association shall be determined on the basis of one vote per Unit.
ARTICLE X
RESERVATION OF EXPANSION AND DEVELOPMENT RIGHTS
This section is null and void, as the Declarant Control Period has expired.
SECTION 10.01 Development Rights. Declarant expressly reserves the right to construct Additional Improvements on Units and to complete construction of the Common Elements within the Planned Community as necessary ("Additional Improvements'). Construction of additional Units and Tracts may be done in any order as determined in the sole discretion of the Declarant; however, if the Declarant exercises its right to construct Additional Improvements, it shall be obligated to construct improvements on Lots 13 through 31 as a group, together with construction of necessary improvements on Tract A adjacent to said Lots and to the cast boundary of the Planned Community, Tract C adjacent to Lots 27 through 31, and Tract E; or to construct improvements on Lots 32 through 52 as a group together with construction of necessary improvements on Tract A adjoining said Lots and on the east boundary of the Planned Community to connect with the previously constructed portion of Tract A. Tract C adjacent to said Lots and Tract D.

SECTION 10.02 Amendment of the Declaration. If Declarant elects to construct Additional Improvements, and submits additional Units to this Declaration, at such time as construction of the Additional Improvements arc substantially complete. Declarant hereby reserves the right, without the consent of the Owners but with the approval of the Federal Housing Authority that the amendment and addition of Units is in accord with the general plan heretofore approved by it. to and shall record an Amendment to the Declaration reallocating the Allocated Interests so that the Allocated Interests appurtenant to each Unit will be apportioned according to the total number of Units submitted to the Declaration. The Allocated Interest appurtenant to each Unit. as expanded, shall be determined by a fraction, the numerator of which shall be one (1) and the denominator of which shall be the total number of Units then completed in Planned Community.
SECTION 10.03 Amendment of the Plat. Declarant hereby reserves the right, if necessary or required as a result of the construction of Additional Improvements or if required by any governmental agency, to file an Amendment to the Plat. The Amendment to the Plat shall substantially conform to the requirements contained in this Declaration.
SECTION 10.04 Interpretation. Recording of an Amendment to the Declaration and Plat. if necessary, in the office of the Clerk and Recorder of the County of Larimer, State of Colorado shall automatically: (i) vest in each existing Unit Owner the reallocated Allocated Interest appurtenant to his Unit; and (ii) vest in each existing Mortgagee a perfected security interest in the reallocated Allocated Interest appurtenant to the numbered Unit. Upon the recording of an Amendment to the Declaration, the definitions used in the Declaration shall automatically be extended to encompass and to refer to all completed Units within the Planned Community. The Additional Improvements shall be added to and become a pan of the Planned Community for all purposes. Reference to the Declaration and Plat in any instrument shall be deemed to include all Amendments to the Declaration and Plat without specific reference thereto.

SECTION 10.05 Maximum Number of Units. The maximum number of Units in the Planned Community shall not exceed 52 Units, with 12 Units and that portion of Tract A as referred to in Section 10.01. and Tracts B and F to be constructed initially. Declarant shall not, however, be obligated to create more than 12 Units and construct the improvements on a portion of Tract A as set forth in Section 10.01 and Tracts B and F in the Planned Community.
SECTION 10.06 Construction. The buildings, structures and types of improvements to be placed on the Planned Community or any part thereof shall be of a quality equal to or better than the improvements previously constructed, but need not be the same size, style or configuration.

SECTION 10.07 Construction Easement. Declarant expressly reserves the right to perform warranty work, repairs and construction work and to store materials in secure areas, in Units and in or on the Common Elements, and the future right to control such work and repairs, and the right of access thereto, until construction of all 52 Units is complete. All work may be performed by Declarant without the consent or approval of any Unit Owner or Mortgagee. Declarant has such an easement through the Common Elements as may be reasonably necessary for the purpose of discharging Declarant's obligations and exercising Declarant's reserved rights in this Declaration. Such casement includes the right to construct underground utility lines, pipes, wires, ducts, conduits, and other facilities across the Common Elements or designated Units for the purpose of furnishing utility and other services to buildings and improvements to be constructed on Units within the Planned Community. Declarant's reserved construction easement includes the right to grant casements to public utility companies and to convey improvements within those casements anywhere in the Common Elements not otherwise occupied. If Declarant grants any such easements. Exhibit B to the Declaration will be amended to include reference to the recorded easements.
SECTION 10.08 Termination of Expansion and Development Rights. The development rights reserved to Declarant, for itself, its successors and assigns, shall expire ten years from the date of recording this Declaration, unless the expansion and development rights are (1) extended as allowed by law or (ii) reinstated or extended by the Association, subject to whatever terms, conditions, and limitation the Executive Board may impose on the subsequent exercise of the expansion and development rights by Declarant.
SECTION 10.09 Transfer of Expansion and Development Rights. Any Expansion or Development Right created or reserved under this Article for the benefit of Declarant may be transferred to any person or entity by an instrument describing the rights transferred and recorded in the County of Larimer, State of Colorado. Such instrument shall be executed by the transferor Declarant and the transferee.
ARTICLE XI
SPECIAL DECLARANT RIGHTS AND ADDITIONAL RESERVED RIGHTS
This section is null and void, as the Declarant Control Period has expired.

SECTION 11.01 Special Declarant Rights. Declarant hereby reserves the right, from time to time until the expiration of the Declarant Control Period, to perform (he acts and exercise the rights hereinafter specified (the "Special Declarant Rights'). Declarant's Special Declarant Rights include the following:

(a) Completion of Improvements. The right to complete improvements indicated on the Plat filed with the Declaration.
(b) Exercise of Development Rights. The right to exercise any Development Right reserved in Article X of this Declaration.
(c) Sales Management and Marketing. The right to maintain sales offices, management offices and signs advertising the Units and models anywhere within or upon any Unit or on any Common Element.
(d) Construction Easements. The right to use easements through the Common Elements and/or any Unit for the purpose of making improvements within or upon any Unit.
(e) Master Association. The right to make the Planned Community subject to a Master Association.
(f) Merger. The right to merge or consolidate this Planned Community with another Planned Community of the same form of ownership.
(g) Control of Association and Executive Board. The right to appoint or remove any Officer of the Association or any Executive Board member.
(h) Amendment of Declaration. The right to amend the Declaration in connection with the exercise of any Development Rights, Special Declarant Rights and Additional Reserved Rights.
(i) Amendment of Plat. The right to amend the Plat in connection with the exercise of any Development Rights, Special Declarant Rights or Additional Reserved Rights.

SECTION 11.02 Additional Reserved Rights. In addition to the Special Declarant Rights set forth in Section 11.01 above. Declarant also reserves the following additional rights (the "Additional Reserved Rights'):

(a) Dedications. The right to establish, from time to time, by dedication or otherwise, or to have vacated, utility and other casements for purposes including but not limited to streets, paths, walkways, drainage, recreation areas, parking areas, conduit installation areas, and to create other reservations, exceptions and exclusions for the benefit of and to serve the Unit Owners within the Planned Community.
(b) Use Agreements. The right to enter into, establish, execute, amend, and otherwise deal with contracts and agreements for the use. lease, repair, maintenance or regulation of parking and/or recreation facilities, which may or may not be a part of the Planned Community for the benefit of Unit Owners and/or the Association.
(c) Other Rights. The right to exercise any Additional Reserved Right created by any other provision of this Declaration.


SECTION 11.03 Rights Transferable. Any Development Right, Special Declarant Right or Additional Reserved Right created or reserved under this Article for the benefit of Declarant may be transferred to any person or entity by an instrument describing the rights transferred and conditions, and limitation the Executive Board may impose on the subsequent exercise of the expansion and development rights by Declarant.
SECTION 10.09 Transfer of Expansion and Development Rights. Any Expansion or Development Right created or reserved under this Article for the benefit of Declarant may be transferred to any person or entity by an instrument describing the rights transferred and recorded in the County of Larimer, State of Colorado. Such instrument shall be executed by the transferor Declarant and the transferee.
ARTICLE XI
SPECIAL DECLARANT RIGHTS AND ADDITIONAL RESERVED RIGHTS
This section is null and void as the Declarant Control Period has expired.

SECTION 11.01 Special Declarant Rights. Declarant hereby reserves the right, from time to time until the expiration of the Declarant Control Period, to perform (he acts and exercise the rights hereinafter specified (the "Special Declarant Rights'). Declarant's Special Declarant Rights include the following:

(a) Completion of Improvements. The right to complete improvements indicated on the Plat filed with the Declaration.
(b) Exercise of Development Rights. The right to exercise any Development Right reserved in Article X of this Declaration.
(c) Sales Management and Marketing. The right to maintain sales offices, management offices and signs advertising the Units and models anywhere within or upon any Unit or on any Common Element.
(d) construction Easements. The right to use easements through the Common Elements and/or any Unit for the purpose of making improvements within or upon any Unit.
(e) Master Association. The right to make the Planned Community subject to a Master Association.
(f) Merger. The right to merge or consolidate this Planned Community with another Planned Community of the same form of ownership.
(g) Control of Association and Executive Board. The right to appoint or remove any Officer of the Association or any Executive Board member.
(h) Amendment of Declaration. The right to amend the Declaration in connection with the exercise of any Development Rights, Special Declarant Rights and Additional Reserved Rights.
(i) Amendment of Plat. The right to amend the Plat in connection with the exercise of any Development Rights, Special Declarant Rights or Additional Reserved Rights.

SECTION 11.02 Additional Reserved Rights. In addition to the Special Declarant Rights set forth in Section 11.01 above. Declarant also reserves the following additional rights (the "Additional Reserved Rights'):

(a) Dedications. The right to establish, from time to time, by dedication or otherwise, or to have vacated, utility and other casements for purposes including but not limited to streets, paths, walkways, drainage, recreation areas, parking areas, conduit installation areas, and to create other reservations, exceptions and exclusions for the benefit of and to serve the Unit Owners within the Planned Community.
(b) Use Agreements. The right to enter into, establish, execute, amend, and otherwise deal with contracts and agreements for the use. lease, repair, maintenance or regulation of parking and/or recreation facilities, which may or may not be a part of the Planned Community for the benefit of Unit Owners and/or the Association.
(c) Other Rights. The right to exercise any Additional Reserved Right created by any other provision of this Declaration.


SECTION 11.03 Rights Transferable. Any Development Right, Special Declarant Right or Additional Reserved Right created or reserved under this Article for the benefit of Declarant may be transferred to any person or entity by an instrument describing the rights transferred and conditions, and limitation the Executive Board may impose on the subsequent exercise of the expansion and development rights by Declarant.
SECTION 10.09 Transfer of Expansion and Development Rights. Any Expansion or Development Right created or reserved under this Article for the benefit of Declarant may be transferred to any person or entity by an instrument describing the rights transferred and recorded in the County of Larimer, State of Colorado. Such instrument shall be executed by the transferor Declarant and the transferee.

ARTICLE XII
RESTRICTIONS ON USE. ALIENATION AND OCCUPANCY

SECTION 12.01 Use and Occupancy Restriction. Subject to the Development Rights and Special Declarant Rights reserved by the Declarant, the following use restrictions shall apply to all Units and to the Common Elements:

(a) Each Unit shall be used for single family residential purposes only, and no trade or business of any kind may be carried on therein except that a professional or home occupation, if permitted by applicable zoning restrictions and if not outwardly visible, shall be allowed. Lease or rental of a Unit for residential purposes shall not be considered to be a violation of this covenant.
(b) Owners shall be prohibited from leasing their Units for a term of less than one (1) month or leasing less than all of a Unit; provided, however, that these prohibitions shall not apply to leases of Units by a mortgagee in possession of a Unit following a default in a first mortgage, a foreclosure proceeding, or any deed to a mortgagee in lieu of foreclosure. All leases shall be in writing and all leases shall incorporate by reference and be subject to the provisions of this Declaration, the By-Laws and the Rules and Regulations of the Association.

SECTION 12.02 Use of Common Elements. There shall be no obstruction of the Common Elements, nor shall anything be stored on any part of the Common Elements without the prior written consent of the Executive Board of the Association, except as specifically provided herein. Nothing shall be altered on, constructed in, or removed from the Common Elements except on the prior written consent of the Executive Board of the Association. No damage to or waste of the Common Elements or any part thereof which would be in violation of any statute, rule, ordinance, regulation, permit, or other validly imposed requirement of any governmental body shall be committed by any Owner, or any invitee of any Owner, and each Owner shall indemnify and hold the Association and the other Owners harmless against all loss resulting from any such damage or waste caused by him and his invitees; provided, however, that any invitee of the Declarant shall not, under any circumstances, be deemed to be an invitee of any other Owner. No noxious, destructive, or offensive activities shall be carried on in any Unit or in the Common Elements or any part thereof, nor shall anything be done therein which may be or may become an annoyance or nuisance to any Owner or any person at any time lawfully residing in any Unit.
SECTION 12.03 Animals. No animals, livestock or poultry of any kind shall be raised, bred or kept within the Planned Community except that a reasonable number of dogs, cats or other household pets may be kept on a Unit but not upon the Common Elements, subject to the Rules and Regulations as may be adopted and amended from time to time by the Association. The Association may. under its power to promulgate Rules and Regulations, require any Owner of a dog or cat or other allowable pet to pay an extra amount per month as part of that Owner'» assessment pursuant to Section 7.07 hereof to defray any possible costs of damage or litter to the Common Elements caused by any such animal.
(a) In the event any dog, cat or other household pet shall constitute a nuisance or inconvenience to an Owner or resident of any Unit, then the Executive Board shall have the right to direct that the animal or animals be permanently removed from the Planned Community after the Owner has been provided notice and a hearing on said issue before the Executive Board.
(b) Dogs, cats and other household animals shall not litter the Tracts or any portion of the Common Elements. It shall be the duty of the Association to keep the Tracts and Common Elements free from litter caused by pets. The Owner of pets known to be at large shall be properly assessed by the Executive Board for clean up expenses incurred, together with the cost of collection and enforcement thereof. including reasonable attorney's fees, and the same shall be assessed as an individual assessment against the Owner of any such pet causing such litter in accordance with Section 7.07 hereof.
(c) Dogs, cats or other household pets shall not be allowed to run at large within the Planned Community or any pan thereof, but shall at all times be restrained on a leash while such animal is outside an Owner's Unit. It shall be the duty of the Association, or its representatives, to notify the City Dog Warden of pets found at large within the Planned Community in violation of any applicable City Ordinances.


SECTION 12.04 Rules and Regulations. No Owner shall violate the Rules and Regulations for the use of the Units and of the Common Dements as may be adopted from time to time by the Association.

SECTION 12.05 Trash. Subject to the right of the Association to designate one single company as the sole entity for trash removal within the Planned Community, each Unit Owner shall be responsible for his or her own trash removal and for payment thereof, and each Unit shall at all times be kept in a clean, sightly and healthy condition. No trash, liner, junk. boxes, containers. bottles, cans, implements, machinery, lumber or other building materials shall be permitted to remain exposed upon any Unit so as to be visible from any neighboring Unit or from any street, except as may be reasonably necessary during the period of construction. The Executive Board shall have the right and duty. through its agents and employees, upon 30 days written notice to the Owner thereof, and after hearing before the Executive Board, to enter upon any Unit and remove such unsightly objects and materials. The cost of removal shall be chargeable to such Owner by an individual assessment in accordance with Section 7.07 hereof.

SECTION 12.06 Nuisances. No noxious or offensive activity shall be carried on upon any Unit or any part of the Planned Community, nor shall anything be done or maintained thereon which shall become an annoyance or nuisance to any other Unit Owner or residence or detract from the value of the Planned Community as an attractive residential community. Habitually barking, howling or yelping dogs and cats and unremoved excrement therefrom shall be deemed to be a nuisance. No activity shall be conducted on any part of the Planned Community which is or might be unsafe, unsightly, unhealthy or hazardous to any person.
SECTION 12.07 Restriction on Parking. Storage and Garages.
(a) No outside part of a Unit nor any part of the Common Elements shall be used as a parking, storage, display or accommodation area for any type of house trailer, camping trailer, boat trailer, hauling trailer, boat or other recreational vehicle or accessories thereto. All of such vehicles shall be stored, parked or maintained wholly within the garage area of a Unit or outside of the Planned Community. All parking shall be subject to regulation and restriction by the Association, and the Association is hereby granted the full power and authority to tow or cause to be towed any vehicle from the Planned Community, which is in violation of any of the rules and regulations adopted by the Association.
(b) The garage for each Unit shall be used primarily for the storage of vehicles. Vehicles shall not be allowed to remain parked in a driveway overnight, but shall be stored inside the garage appurtenant to each Unit. Garages may not be converted to living space or other use which would prohibit the temporary or permanent storage of an Owner's vehicle or vehicles therein.
(c) Decks appurtenant to each Unit shall not be used for the permanent storage of personal property, except that one barbecue unit and a reasonable amount of outdoor furniture may be kept on each Deck for each Owner's personal use.

SECTION 12.08 Signs. No sign or advertising of any character except for those of the Declarant and its sales agents shall be erected, placed, permitted or maintained on any Unit, except that "For Sale" or "For Rent" signs not exceeding the size permitted in a residential area by the City of Ft. Collins, Colorado, shall be allowed.
SECTION 12.09 Fences. No fences of any kind shall be allowed to be constructed upon any Unit within the Planned Community except for a Dog Run Area as set forth in Section 12.10 below and except for the perimeter fence installed by Declarant.

SECTION 12.10 Dog Run Area. Subject to prior review and approval as required by Article VIII hereof, an Owner may construct a Dog Run Area on such Owner's Lot; provided, further, that the Dog Run Area complies with the diagrams and fencing requirements as set forth in Exhibits C and D attached hereto and incorporated herein by reference. Any Owner who has constructed a Dog Run Area in accordance with this Section and Ankle VIII shall continue to be bound and abide by Section 12.03 hereof.
SECTION 12.11 No Masts. Antennas or Dishes. All exterior aerial masts, radio or television antennas, satellite or direct television dishes shall be prohibited unless the installation of the same is approved pursuant to Article VIII hereof. Which approval may be withheld if applied to the Planned Community as a whole. In the event any such masts, antennas or dishes are allowed, they shall be concealed from view as much as possible.

ARTICLE XIII
EASEMENTS AND LICENSE

SECTION 13.01 Recording Data. All casements and licenses to which the Planned Community is presently subject are recited in Exhibit B. In addition, the Planned Community may be subject to other casements and licenses granted pursuant to Article III, Sections 3.07 and 3.08, Article VI. Section 6.04(b) and Article X, Section 10.07 of this Declaration.

ARTICLE XIV
INSURANCE

SECTION 14.01 Casualty Insurance on Insurable Common Elements. The Association shall keep all insurable improvements and fixtures of the Common Elements insured against loss or damage by fire for the full insurance replacement cost thereof, and may obtain insurance against such other hazards and casualties as the Association may deem desirable. The Association may also insure any other property whether real or personal, owned by the Association, against loss or damage by fire and such other hazards as the Association may deem desirable, with the Association as the owner and beneficiary of such insurance. The insurance coverage with respect to the Common Elements shall be written in the name of, and the proceeds thereof shall be payable to the Association. Insurance proceeds shall be used by the Association for the repair or replacement of the property for which the insurance was carried. Premiums for all insurance carried by the Association are Common Expenses included in the Common Assessments made by the Association.
SECTION 14.02 Replacement or Repair of Property. In the event of damage to or destruction of any pan of the Common Elements or Improvements, the Association shall repair or replace the same from the insurance proceeds available. If such insurance proceeds are insufficient to cover the costs of repair or replacement of the property damaged or destroyed, the Association may make a Reconstruction Assessment against all Unit Owners to cover the additional cost of repair or replacement not covered by the insurance proceeds, in addition to any other Common Assessments made against such Unit Owner.

In the event that the Association is maintaining blanket casualty and fire insurance on the Units, the Association shall repair or replace the same from the insurance proceeds available.

SECTION 14.03 Owner's Insurance. Each Unit Owner shall be responsible to obtain and maintain adequate Homeowner's Insurance and such other insurance as each Owner deems appropriate to insure each Owner's Unit and each Owner's personal property.

SECTION 14.04 Fidelity Insurance. The Association shall obtain and maintain, to the extent reasonably available. Fidelity Insurance. Said insurance coverage shall not be less in aggregate than two months' current assessments, plus reserves, as calculated from the current budget of the Association. Any person or company employed by (he Association to manage the Planned Community must obtain and maintain Fidelity Insurance in an amount not less than the amount specified above, unless the Association names the managing agent in a contract of Fidelity Insurance obtained by the Association as set forth herein. The Association may carry Fidelity Insurance in amounts greater than that required herein and may require a managing agent to carry more Fidelity Insurance than required herein. The premium for such Fidelity Insurance shall be a Common Expense.

SECTION 14.05 Annual Review of Policies. All insurance policies shall be reviewed at least annually by the Executive Board in order to ascertain whether the coverage contained in the policies is sufficient to meet the issuance needs as determined by the Executive Board and to make any necessary repairs or replacement of the property which may have been damaged or destroyed.

ARTICLE XV
DESTRUCTION, DAMAGE, OBSOLESCENCE. CONDEMNATION,
APPOINTMENT OF ASSOCIATION AS ATTORNEY-IN-FACT
SECTION 15.01 Condemnation of Common Elements. In the event of a proceeding in condemnation or partial condemnation of the Common Elements by any governmental authority authorized to do so. the proceeds from such condemnation attributable to the Common Elements shall be distributed to the Association for repair of the Common Dements, if applicable, and any proceeds remaining shall be distributed to all members in the same proportion as the annual assessments for common expenses are assessed in accordance with Article K hereof, subject to the provisions of Section 15.02 below.

SECTION 15.02 Lienholder. When a condemnation occurs to the Common Elements within the Planned Community and an Owner's Unit is subject to an encumbrance, the proceeds due the Unit Owner by reason of such condemnation shall be paid to the Unit Owner and their first mortgagee as their interest may appear, and no Unit Owner or other party shall be entitled to priority over a first mortgagee with respect to any such distribution.
ARTICLE XVI
DURATION, AMENDMENT TO OR REVOCATION OF DECLARATION

SECTION 16.01 Duration. The covenants, restrictions and obligations of this Declaration shall run with and bind the real property subject hereto for a term of 20 years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of 10 years each.

SECTION 16.02 Amendment. Except as provided in Article X and Article XI for amendments necessary to construct Additional Improvements on Units within the Planned Community as reserved by the Declarant, this Declaration may be amended only upon the written consent of Owners representing an aggregate ownership interest of 75% or more of the Units and 75% or more of the First Mortgagees of Units within the Planned Community. The certificate of the Association that such consent has been given shall be duly recorded together with the Amendment. Provided, however, the unanimous consent of all Owners and all First Mortgagees of record shall be required for any amendment hereof effecting a change in:
(a) The boundaries of any Unit;
(b) The liability for common expenses appertaining to any Unit;
(c) The number of membership interests or votes in the Association appertaining to any Unit; or
(d) The fundamental purposes to which any Unit or the Common Elements are restricted.

SECTION 16.03 Revocation. This Declaration may be revoked and the Planned Community hereby established terminated only upon the written consent of Owners representing an aggregate ownership interest of 75% or more of the Units and all of the First Mortgagees of record. The certificate of the Association that such consent has been given shall be duly recorded.


ARTICLE XVII
NOTIFICATION OF INSURERS OF FIRST MORTGAGES
SECTION 17.01. Upon prior written request, any insurer of any first mortgage affecting any Unit shall be entitled to timely written notice from the Association of any proposed amendment to or revocation of or other termination of the Planned Community; any condemnation or eminent domain proceeding affecting the Planned Community of any thereof; any significant damage or destruction to the Common Elements; and any default under this Declaration or the By-Laws of the Association which gives rise to a cause of action against the Owner of a Unit to a mortgage insured by said insurer if not cured within sixty days.
ARTICLE XVIII
MISCELLANEOUS
SECTION J8.01 Compliance with Provisions of Declaration and Bv-Laws of the Association. Each Owner shall comply with the provisions of this Declaration, the Certificate of Incorporation and the By-Laws of the Association, and the decisions and resolutions of the Association adopted pursuant thereto as the same may be lawfully enacted or amended from time to time. Failure to comply with any of the same shall be grounds for an action to recover sums due and for dames or injunctive relief or both, maintainable by the Association on behalf of the Owners, or, in a proper case. by an aggrieved Owner.

SECTION 18.02 Registration of Mailing Address. Each Owner shall register the Owner's mailing address with the Association, and all notice or demands intended to be served upon any Owner shall be sent by cither registered or certified mail, postage prepaid, addressed in the name of the Owner at such registered mailing address. All notice or demands intended to be served upon the Association shall be given by registered or certified mail. postage prepaid, to the address of the Association as designated in the By-Laws of the Association. All notices or demands to be served on mortgagees pursuant hereto shall be sent by either registered or certified mail, postage prepaid, addressed in the name of the mortgagee at such address as the mortgagee, insurer, or guarantor may have furnished to the Association in writing. Unless the mortgagee furnishes the Association such address, the mortgagee shall not be entitled to receive any of the notices provided for in this Declaration. Any notice referred to in this Section shall be deemed given when deposited in the United States mail in the form provided for in this Section.
SECTION 18.03 Owner's Obligations Continue. All obligations of the Owner under and by virtue of the provisions contained in this Declaration shall continue, notwithstanding that the Owner may have leased or rented said interest as provided herein, but the Owner of a Unit shall have no obligation for expenses or other obligations accruing after the Owner conveys such Unit.
SECTION 18.04 Number and Gender. Whenever used herein, unless the context shall otherwise provide, the singular number shall include the plural, die plural shall include the singular, and the use of any gender shall include both genders.

SECTION 18.05 Severability. If any of the provisions of this Declaration or any paragraph, sentence, clause, phrase, or word or the application thereof in any circumstance shall be invalidated, such invalidity shall not affect the validity of the remainder of the Declaration, and the application of any such provision, paragraph, sentence, clause, phrase, or word in any other circumstance shall not be affected thereby.

This Declaration is executed this 21 day of ___Nov______, 1996
Declarant
Attest: James Construction Co. Inc.
Carolyn B. Bradley, Secretary James G. Postle, President

State of Colorado),
County of Boulder)
Subscribed, sworn to and acknowledged before me this 21st day of November 1996, by James G. Postle as President and Carolyn B. Bradley, as Secretary of James Construction Company, Inc., a Colorado Corporation.
Witness my hand and official seal.
My Commission Expires: 12/10/1999
Jill Hitchcock
Notary Public


Exhibit A

Legal Description
A tract of land located in the Southeast Quarter of Section 1, Township 6 North. Range 69 West of the 6th Principal Meridian, City of Fort Collins, Larimer County, Colorado, being more particularly described as follows:

Considering the East line of the Southeast Quarter of said Section 1 as bearing South 00°W26' West from an aluminum cap in a range box at the East Quarter corner of said Section 1 to an aluminum cap in a range box at the Southeast corner of said Section 1 and with all bearings contained herein relative thereto:

Commencing at the Southeast comer of said Section 1: thence, along the South line of said Section 1. North 89'06'23" West, 50.02 feet to a point on the West Right of Way line of Lemay Avenue, said point also being the POINT OF BEGINNING; thence along said South line, North 89°06'23", West, 392.43 feet to a point a curve concave to the Northeast having a central angle of 65°46'32", a radius of 610.00 feet and the chord of which bears North 56°13'07" West, 662.45 feet; thence departing said South line and along the arc of said curve, 700.28 feet; thence North 23°19'51" West. 358.22 feet; thence North 66°40'09" East 89.18 feet; thence, South 42°54'13" East, 74.77 feet; thence. South 60°34'05" East, 96.89 feet; thence. South 79°47'50" East 315.22 feet; thence. South 72°23'49" East, 229.53 feet; thence. South 50°35'58" East, 130.23 feet; thence. South 89°56'40" East, 238.60 feet to a point on the West Right of Way line of Lemay Avenue; thence, along the West line, South 00°04'26" West, 428.18 feet to the Point of Beginning.


EXHIBIT B
Easements
1. Those easements created in this Declaration including, but not being limned to, those set forth in Article III. Section 3.07, 3.08, 3.10, 3.11 and 3.12; Article VI, Section 6.04 2. Right of way for ditches or canals constructed by the authority of the United States as reserved in United States Patent recorded June 15, 1903 in Book 113 at page 234.
3. An easement for electric transmission line and incidental purposes granted to Poudre Valley Rural Electric Association. Inc. by the instrument recorded August 27, 1980 in Book 2065 at Page 0557.
4. An easement for electric transmission line and incidental purposes granted to the City of Fort Collins, a municipal corporation by the instrument recorded June 5, 1981 in Book 2118 at Page 0837.
5. Terms, conditions, provisions, agreements and obligations specified under the Easement and Right of Way Agreement by and between Oak Farm Inc. and the Fort Collins-Loveland Water District recorded September 26, 1983 in Book 2238 at Page 2245.

6. Terms, conditions, provisions, agreements and obligations specified under the Easement and Right of Way Agreement by and between Oak Farm Inc. and the Fort Collins-Loveland Water District recorded September 15. 1987 at Reception No. 87053853.
7. Terms, agreements, provisions, conditions and obligations as contained in Easement Dedication recorded June 22, 1995 as Reception No. 95035487.
8. Right of way for Lemay Avenue as the same presently exists and insofar as it affects the subject property.
9. Driveway Easement on each Lot with the Planned Community recorded the 11th day of November, 1996, as Reception No. 96080258.

EXHIBIT "C"

MIRAMON T VILLAGE PATIO HOMES
DOG RUN DETAILS


A - Gate Location B • Alternative Gate Location
PLAN 1351
FENCING SPECIFICATIONS:
The only fence allowed for a dog run area shall be a four (4) foot High ornamental iron fence manufactured by Classic Ornamental Premier Fencing, Universal Style with a white finish, or from a different company as long as the quality and finish of the fence are equal or better.
The Fence shall have two by two (2 x 2) inch metal posts, eight (8) feet on center with one by one (1x1) inch top rails and five-eights (5/8) inch square pickets, four (4) inches on center spacing.

EXHIBIT "D"
MIRAMONT VILLAGE PATIO HOMES DOG RUN DETAILS

A-Gate Location B • Alternative Gate Location
PLAN 1522
FENCING SPECIFICATIONS:

The only fence allowed for a dog run area shall be a four (4) foot high ornamental iron fence manufactured by Classic Ornamental Premier Fencing. Universal Style with a white finish, or from a different company as long as the quality and finish of the fence arc equal of better.
The Fence shall have two by two (2x2) inch metal posts, eight (8) feet on center with one by one (1 x 1) inch top rails and five-eights (5/8) inch square pickets, four (4) inches on center spacing.