Loading...
HomeMy WebLinkAboutcovenantsNORTH CAROLINA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS WEST LANDING at The SUMMIT, SUBDIVISION HARNETT COUNTY THIS DECLARATION is made on the date hereinafter set forth by DIVERSIFIED HOLDINGS, LLC., a North Carolina Limited Liability Company, hereinafter referred to as "Declarant ". WITNESSETH: WHEREAS, Declarant is the owner of certain land in Harnett County, North Carolina, which is more fully described as follows: Lot(s) 155 through 186, West Landing at The Summit, Subdivision as shown on the plat of same duly recorded in Plat Book , Page , Harnett County, North Carolina Registry; and Whereas, the above lots are a portion of that land described in the deed recorded in Book 2284, Page 850, Harnett County Registry, and on the map recorded in Book of Maps , Page Harnett County Registry, which Declarant is developing into a community of single - family homes known as The Summit (hereinafter the Subdivision); WHEREAS, Declarant, proposes to develop the above lots as a residential subdivision, along with certain other lands that Declarant or its assignees might elect to add to the above land description by amendments to this document, and Declarant desires to subject said land and/or common areas to this Declaration. WHEREAS, Declarant desires to provide for the maintenance and upkeep of the Association Common Areas (hereinafter defined) within the Subdivision and to provide for enforcement of covenants and restrictions applicable to the Subdivision, and, to that end, desires to subject the property within the Subdivision to the convenants, conditions, restrictions, easements, charges and liens hereinafter set forth, each and all of which is and are for the benefit of such property and each owner thereof, and WHEREAS, Declarant has deemed it advisable to create an organization to own, maintain and administer the Association Common Area, to administer and enforce covenants and restrictions exclusively applicable to the Subdivision, and to collect and disburse the assessments and charges hereinafter created, and Declarant has incorporated under North Carolina law as a nonprofit corporation, WEST LANDING at THE SUMMIT, OWNERS ASSOCIATION, for the purpose of exercising the aforesaid functions. NOW, THEREFORE, Declarant hereby declares that the above described lands shall be held, sold and conveyed subject to the following easements, restrictions, covenants, and conditions, which are for the purpose of protecting the value and desirability of and which shall run with the real property and be binding 1 on all parties having any right, title or interest in the platted properties or any part thereof, their heirs, successors and assigns, and shall inure to the benefit of each owner thereof. ARTICLE I DEFINITIONS Any defined term used in this Declaration shall have the meaning set forth below (unless the context shall prohibit) or, if not specifically defined in this Article I, the meaning of such term as set forth in the Act or in any other provision of this Declaration. Section 1. "Act" shall mean and refer to Chapter 47F of the North Carolina General Statutes, known as the North Carolina Planned Community Act. Section 2. "Owner" shall mean and refer to the record owner, whether one or more persons or entities, of fee simple title to any Lot which is a part of the Properties, including contract sellers and owners of an equity of redemption, but excluding those having an interest in a Lot solely as security for the performance of an obligation. Section 3. "Properties" shall mean and refer to the "Existing Property" described in Article II of this Declaration and any additional property annexed pursuant to said Article II. Section 4. "Lot" shall mean and refer to any plot of land, with delineated boundary lines, shown on any recorded subdivision map of any portion of the Subdivision (regardless of whether the Lot has been subjected to this Declaration as provided in Article II hereof), with the exception of any Common Area owned in fee by the Association and any street rights -of -way shown on such recorded map. In the event that any Lot is increased or decreased in size by recombination or re- subdivision through recordation of a new subdivision plat by Declarant, any newly - platted lot shall thereafter constitute a Lot. Section 5. "Declarant" shall mean and refer to DIVERSIFIED HOLDINGS, LLC, a North Carolina Limited Liability Company, its successors and assigns. It shall also mean and refer to any person, firm or corporation to whom or which Declarant may assign or delegate the rights and obligations of Declarant by an assignment of Declarant's rights recorded in the Harnett County Registry. Section 6. "Association" shall mean and refer to WEST LANDING at The SUMMIT, OWNERS ASSOCIATION, a North Carolina nonprofit corporation, its successors and assigns. Section 7. "Board of Directors" and "Board" shall mean and refer to the Board of Directors of the Association elected or appointed to manage the affairs of the Association as provided by the Bylaws of the Association. time. Section S. "Bylaws" shall mean and refer to the Bylaws of the Association, as amended from time to 2 Section 9. "Declarant Control Period" shall mean and refer to the period of time during which the Declarant may appoint or remove the members of the Board of Directors of the Association. The Declarant Control Period shall terminate upon the earlier of the following to occur: (a) Not later than six months after the point at which the Declarant no longer has an ownership of any Lot being part of the Properties, recognizing that the Declarant intends to add additional Lots to the Properties by the creation and subjection to this Declaration of new Lots as set forth in Article II hereof (it being hereby stipulated that the termination and rejuvenation of the Declarant Control Period shall occur automatically as often as the foregoing shall occur); or (b) Relinquishment or transfer of all Special Declarant Rights as provided in '47F-3-104 of the Act. Section 10. "Declaration" shall mean and refer to this Declaration of Covenants, Conditions, and Restrictions for West Landing at The Summit, Subdivision and all amendments thereto and supplements thereof. Section 11. "Member" shall mean and refer to every person or entity who or which holds membership in the Association. Section 12. "Recreational Amenity" shall mean and refer to all recreational amenities owned by the Association for the use and benefit of the Members of the Association. Section 13. "Buffer strip" shall mean a strip of land to be used for planting and/or open area the purpose of which is to provide a minimum separation of different uses of property or a naturally existing wooded area of sufficient width and density to provide a visual screen. Section 14. "Association Common Area" shall mean and refer to the real property, together with any improvements thereon, owned by the Association, whether in fee or by easement, for the common benefit of the Owners of Lots within the Subdivision, and specifically including, without limitation, all private streets within the Subdivision, the area within any storm water easements and the facilities constructed therein which serve more than one Lot and are not maintained by any governmental authority, the Association or another sub - association. The Association Common Area shall be maintained by the Association or its successors in interest unless dedicated to the public use and accepted by a public agency, authority, or utility, the Association or another sub - association as set forth herein. In addition to the above described Association Common Area, Association Common Areas shall also be described or identified as "Common Area" on a Plat recorded in the Book of Plats in the Harnett County Registry. Section 15. "Association Common Area Easement" shall mean and refer to Association Common Area as to which the Association has only an easement interest, and not a fee simple interest. ARTICLE II PROPERTY SUBJECT TO THIS DECLARATION AND WITHIN THE JURISDICTION OF THE WEST LANDING at THE SUMMIT, OWNERS ASSOCIATION Section 1. Existing; Property. The real property which, at the time of recording of this Declaration, is and shall be held, transferred, sold, conveyed, and occupied subject to this Declaration, and which is within the jurisdiction of the Association, is described in the deed recorded in Book , Page , Harnett County Registry, and on the map recorded in Book of Map , Page , Harnett County Registry. Section 2. Additions to Existing Property y Declarant. At any time, additional lands consistent with the development of Lots by Declarant in accordance with its general plan of development, may be annexed by the Declarant without the consent of the Members and therefore become subject to this Declaration by the recording by Declarant of a plat showing such property to be annexed and recording by Declarant of a supplementary declaration extending the operation and effect of this Declaration to the property to be annexed; provided, however, that such property must be contiguous to property already subjected to this Declaration (or separated from such property only by the right -of -way of a street or road). The addition of such property pursuant to this Section may increase the cumulative number of Lots within the Properties and, therefore, may alter the relative maximum voting strength of the various types of Members. Section 3. Conveyance of Association Common Area in Annexed Propert y. Prior to the conveyance of the final Lot within any newly annexed property to an Owner other than Declarant, the owner of the annexed property shall convey to the Association all Association Common Area located within the newly annexed property. Title to such Association Common Area shall be conveyed in the same manner as set forth in Section 2 of Article VII of this Declaration. ARTICLE III ARCHITECTURAL CONTROL Section 1. Approval by the Declarant, Its Successors, or Assigns. After occupancy of the dwelling constructed on a Lot pursuant to a certificate of occupancy or other certificate issued by the appropriate governmental entity, no building, fence, sign (including unit identification signs) wall or other structure (including play equipment) shall be commenced, constructed, erected or maintained upon such Lot, nor shall any exterior addition to or change or alteration thereof be made, nor shall a building permit for such improvement or change be made, nor shall any major landscaping or re- landscaping be commenced or made (such construction, alteration and landscaping are hereinafter referred to as the "Improvements ") until plans and specifications showing the nature, kind, shape, heights, materials, color and location of same shall have been submitted to and approved in writing by the Declarant or its assigns. If the Declarant fails to approve or disapprove such proposed Improvements within thirty (30) days after the plans and specifications have been received by it, approval will not be required, and this Article shall be deemed to have been complied with. Section 2. Amendment of Architectural Guidelines. Declarant shall have the right (but not the obligation) to promulgate and from time to time amend written architectural standards and construction specifications (hereinafter the "Architectural Guidelines ") which may establish, define and expressly limit the standards and specifications which will be approved, including, but not limited to, architectural style, exterior color or finish, roofing material, siding material, driveway material, landscape design and construction technique. Declarant shall not approve any Improvements which it determines, in its discretion, not to be in harmony of external design, construction and/or location in relation to the surrounding structures, topography or the general plan of development of the Subdivision. Section 3. Delegation of Approval Authority. Declarant may, at any time, delegate the review and approval authority contained in this Article III to the Board of Directors of the Association, which, in turn, may delegate such authority, to an Architectural Control Committee composed of three or more persons appointed by the Board. Declarant shall delegate such authority no later than the date upon which Declarant no longer owns any Lots within the Properties, or December 31, 2020, whichever is earlier. Section 4. Applicability. Any use of the term "Declarant" in this Article III shall be deemed to apply to Declarant and, when appropriate, to the Board of Directors or the Architectural Committee. Nothing herein shall be construed to permit interference with the development of Lots by Declarant in accordance with its general plan of development. ARTICLE W DESIGN AND USE RESTRICTIONS Section 1. Use of Propert y. All lots shall be used for residential purposes only (except for temporary office of Declarant and/or model homes used by Declarant). Declarant, real estate brokers, Owners, and their agents may show Lots for sale or lease. No structure, except as hereinafter provided, shall be erected, altered, placed or permitted to remain on any lot other than either one (1) detached single family dwelling not to exceed two and one -half (2 -1/2) stories in height, which may be used and occupied as a single family residence. Notwithstanding the foregoing, the Declarant, its agents and employees, shall have the right to: (i) use Lots and improvements erected thereon for sales offices, field construction offices, storage facilities, and its own general business offices; (ii) maintain spot - lighted model homes which may be open to the public for inspection seven days per week for such hours as the Declarant deems appropriate or necessary; (iii) conduct any other activities on Lots to benefit sales and construction efforts; Section 2. Restrictions on Use. No part of said property shall be used for trade, business, profession, manufacturing or other type of commercial activity. No noxious or offensive activity shall be carried on upon any plot, nor shall anything be done which may be or become an annoyance or nuisance to the neighborhood. Section 3. Restrictions on Construction and Accessory Structures. No shack, barn, or other building, other than a Dwelling, its garage and outbuildings incident to residential use, shall be erected on a Lot. Any such structure must be in substantial conformity in materials and type of construction with the main dwelling. All attached garages or carport openings must have doors if they open to street. No structure or addition to a structure shall be erected, placed or altered on any lot until the plan and specification, including elevation, material, color and texture, as well as a site plan showing the location of improvement with grading modifications shall be filed with and approved in writing by the Declarant, or the Board of Directors of the Association or an Architectural Control Committee appointed by the Board. Structure shall be defined to include any building or portion thereof, fence, pavement, driveway or appurtenances to any of the aforementioned. This provision shall not apply to original construction on any Lot by the Declarant or its assigns. No temporary building shall be maintained on any Lot without the approval of the Association or its Architectural Control Committee. No structure of a temporary nature may be used temporarily or permanently as a residence. Notwithstanding the foregoing, the Declarant may use temporary buildings, offices or facilities in connection with property development or the marketing, sale and construction of Units. Section 4. Exterior Construction of Buildings. All dwellings shall be constructed with an exterior of brick, stone, siding or a combination of these materials. No building shall be constructed or allowed to remain on the property whereby imitation siding or cinder blocks are visible from the exterior of said structure. No painting of blocks or other materials shall be used for the purpose of covering up imitation siding or cement blocks. No dwelling exterior color shall be changed without the proposed color having been approved by the Declarant or the Board of Directors of the Association or by an Architectural Control Committee appointed by the Board. Section 5. Square Footage. The floor area of the main residential structure, exclusive of open porches, garages, and carports, shall not be less than 2,000 square feet of floor heated area. Heated area living space shall mean the ordinary living space in a dwelling which is designed and constructed so as to be capable of being heated for regular living use in cold weather. Section 6. Setback Requirements. No dwelling of any kind shall be located on any lot nearer than 35 feet to the front lot line nor nearer than 25 feet to the rear lot line. No building shall be located nearer than 10 feet to an interior side lot line. The intent of the 35 feet setback requirement from the front lot line is to provide a uniformity of appearance among dwellings constructed on adjacent lots. An owner may appeal in writing to Declarant for a waiver of this requirement if circumstances warrant. Declarant must respond within 30 days with approval or disapproval of the waiver request or waiver request will be considered to be approved. However, a minimum front lot line setback requirement of 35 feet shall apply to all structures as required by Harnett County Subdivision Regulations. Section 7. Landscape Requirements. All Lots shall have sodded front and side yards. Section 8. Mailboxes. The placement, design type and color of any mailbox and its support must be approved by the Delcarant or the Architectural Review Board. Typical designs will be supplied upon request. Section 9. Lots Free of Garbage and Debris. It shall be the responsibility of each lot owner to prevent the development of any unclean, unsightly or unkept conditions of buildings or ground on said lot which shall tend to substantially decrease the beauty of the neighborhood as a whole or the specific area. Non - operating cars, unused objects or apparatus, or any portion thereof, shall not be permitted to remain on any lot. All lots shall be kept clean and free of garbage, junk, trash, debris, or any substance that might contribute to a health hazard or the breeding and habitation of snakes, rats, insects, etc. Each purchaser of a respective lot shall cause each lot to be mowed as needed, cause the maintenance and protection of landscaping insuring the proper drainage of the lot so as to prevent soil erosion, and cause the maintenance of the home and any other structures and improvements located on said lot insuring its good condition and appearance. Failure to maintain lots and homes and any other structures and improvements, including fences, in a tidy manner, fourteen (14) days after written notice from the Declarant, it's successors and assigns or the Board of Directors of the Association, advising owner of the undesirable condition(s), will subject the lot owner to a suit to complete the cleaning up of said lot. Section 10. Nuisance or Obnoxious Activity. No offensive or obnoxious activity or trade shall be carried on upon any lot or the Association Common Area, nor shall anything be done thereon which may become an annoyance or nuisance to the neighborhood. No vehicle repairs or maintenance shall be conducted within the Properties other than in a garage and concealed from public view. There shall not be maintained on any lot any plants or animals, or device or thing of any sort whose normal activity or existence is noxious, dangerous, unsightly, unpleasant or of a nature as may diminish or destroy the enjoyment of other 11 property in the neighborhood by the owners thereof. Riding of motorcycles, go -carts, or any other high - powered vehicles shall not be permitted across the property. Section 11. Temporary Structures. No structure of a temporary character, trailer, camper, van, lean - tos, basements, tents, shacks, garages, barns or other outbuilding shall be used as a residence on any lot except as allowed in Section One of this Article. Section 12. Mobile Homes or Modular Units. No mobile homes or modular units may be constructed or allowed to remain on the premises. Section 13. Parking of Vehicles. No mobile home or truck -cargo trailer shall be allowed to be placed or parked on any lot (except as allowed by Section One of this Article). Wrecked and/or inoperable vehicles of any kind shall not be parked or stored on any Lot. However, campers, vans, boats and other recreational vehicles may be placed or parked on any lot, but must be screened from view in the rear yard of the premises. Parking of campers, vans, boats, trailers, and other recreational vehicles is prohibited on subdivision streets. Section 14. Signs. No sign of any kind shall be displayed to the public view on any Lot except signs used to advertise lots and homes "for sale" by the Builder and /or Homeowner. All such real estate signs shall not exceed the standard 18" (x) 24" sign panel with supporting frame. No sign of any kind shall be displayed in or on the Association Common Area without the prior written consent of the Association. Notwithstanding the foregoing, Declarant shall have the right to erect and maintain signs of any type and size on any Lot which it owns and on the Association Common Area in connection with the development and sale of the Properties. Section 15. Animals. No animals, livestock or poultry of any kind shall be raised, bred, kept or pastured within the residential areas of the Property, except that a maximum of three (3) common household pets such as dogs and cats may be kept per Lot. In order to preserve the aesthetic qualities of the Common Properties, to maintain sanitary conditions on the Property, to prevent the spread of worms and infectious diseases on the Common Properties, and to maintain a proper respect for other Owners and users of the Common Properties each person who keeps a pet within a dwelling shall abide by the following restrictions, conditions, and affirmative obligations: (i) No pets may be kept, bred, or maintained for any commercial purpose. (ii) The Owner of such pet or pets, shall exercise best efforts to not allow the pets to excrete upon the Property owned by others or the Declarant, or to excrete in any area within the Property or the Common Properties which are regularly traversed or in which children may be expected to play. (iii) The Owner of such animals shall use a scoop or other device to clean up any defecation or solid excrement left by their pet upon the Common Properties or property owned by others. (iv) The Owner of an animal will not allow it to roam unattended on the Property, it being the responsibility of each pet Owner to leash their animal. (v) The Owner shall muzzle any animal which barks or makes any noises which might be reasonably expected to disturb other Owners. (vi)Pets shall be housed in the dwelling or in pens approved by the Review Board. (vii) Such other regulations as adapted by the Review Board or the Association from time to time. The breach of any of these restrictions, conditions, any obligations and duties shall be a noxious and offensive activity constituting a nuisance. The Declarant and/or the Association shall have the right to remove from the Property or any Lot any pet constituting or creating a nuisance. In addition, any dog that has at any time bitten a person, or any dog that has been trained as an attack dog, shall not be permitted on the premises. Section 16. Garbage Receptacles and Storage. Trash and garbage containers shall not be permitted to remain in public view except on days of trash collection. No trash, rubbish, stored materials, wrecked or inoperable vehicles, or any other unsightly items shall be allowed to remain on any Lot; provided, however, that the foregoing shall not be construed to prohibit temporary deposits of trash, rubbish, and other debris for collection by governmental or other similar garbage and trash removal entities. In the event of curbside trash and /or garbage pickup, trash and/or garbage cans may be moved to the street on the night before the scheduled pickup. All garbage cans and receptacles must be returned to the approved enclosure location by the night of the scheduled pickup. Notwithstanding the foregoing, no vehicle of any type or size which transports inflammatory or explosive cargo or which stores or transports materials or substances defined as hazardous or toxic by any applicable legal requirements shall be kept or stored or allowed to remain in or on the Properties at any time, except as may be required to effectuate transportation, or removal of such prohibited materials and substances through or from the Properties, or, with respect to explosive materials, as may be reasonably required in connection with the construction or installation of streets and utilities in the Properties, or as may be allowed by Declarant, during the Declarant Control Period, and thereafter, the Board, when reasonably required for the construction of other improvements within the Properties. Section 17. Subdivision or Combination of Lots. No single lot may be subdivided by purchaser so as to create two or more building lots from the original lot. No two or more lots may be combined by purchaser into a single lot. Section 18. Driveways. All driveways shall be installed to meet State specifications so as not to impair acceptability of subdivision streets by the State, including but not limited to, any piping or drainage apparatus installed within street rights of way. Driveways shall be constructed of concrete at least four inches in thickness. Section 19. Antennae and Roof Structures. No television, radio or other electrical towers, aerials, antennae, satellite dishes, or other devices of any type for the reception or transmission of radio or television broadcasts or other means of communication shall be erected, constructed, placed or permitted to remain on any Lot or upon any improvements thereon, except that this prohibition shall not apply to those antennae specifically covered by 37 C.F.R. Part 1, Subpart S, Section 1.4000 (or any successor provision) promulgated under the Telecommunications Act of 1996, as amended from time to time. The Association shall be empowered to adopt rules governing the types of antennae that are permissible hereunder and establishing reasonable, non - discriminatory restrictions relating to safety, location and maintenance of antennae. To the extent that the reception of an acceptable signal would not be impaired, an antenna permissible pursuant to rules adopted by the Association may be installed only if it: (i) is located in the rear or side yard of the Lot; (ii) is not visible from any street (whether by location or screening); (iii) is integrated with the Dwelling and surrounding landscape; and (iv) is approved pursuant to Article III of this Declaration. W Section 20. Fences. No fence or similar enclosure may be built on any Lot except a rear yard fence, which fence shall be of wood, vinyl, aluminum, stacked stone, brick or wrought iron construction. No fence or wall shall be erected or maintained nearer to any street than the back, rear corner of the principal dwelling structure. On corner lots, no fences shall be erected any closer to the street than the back, rear corner of the principal dwelling structure. Chain Link fences are specifically prohibited. Fences shall not exceed six (6) feet (72 inches) in height. Any fence built on any Lot shall be maintained in a proper manner so as not to detract from the value and desirability of surrounding property. In the event of the enclosure of a patio comprising an area substantially less than the rear yard, the fence may be no more than seven (7) feet in height so as to provide private screening for said patio and the side of the patio located closest to the house shall be no more than five (5) feet from the rear line of said dwelling /structure. The above mentioned maximum height of 72 inches for a rear yard fence may be increased for those lots on which a swimming pool is constructed and maintained on the rear of the Lot to the minimum height of the fence required by the appropriate authorities of Harnett County, North Carolina, to be erected around a swimming pool. Section 21. Maintenance of Sediment Control Measures. It shall be the responsibility of each lot owner for the maintenance, upkeep and repair of all temporary and permanent ground cover and sediment control measures on the property. There exists a possibility of civil penalties imposed by the Department of Environment and Natural Resources in accordance with General Statute 113A Article 4 "Sedimentation Pollution Control Act of 1973" and its revisions if the measures are not maintained or performed. Owner further agrees to indemnify and hold harmless Declarant or its assigns from any environmental issues to include monetary fines or penalties resulting from any violation or alleged violation from the Department of Environment and Natural Resources or any other federal or state agency attempting to enforce any law, statute or ordinance pertaining to environmental control issues. In the event Owner fails to perform maintenance, upkeep and repair of all temporary and permanent ground cover and sediment control measures on the property, the Declarant or its assigns have the right to perform said measures and assess Owner with the cost of same. ARTICLE V EASEMENTS AND UTILITIES Section 1. Plats. Easements for installation and maintenance of utilities and drainage facilities are reserved, as shall be shown on recorded plats of the lands. Section 2. Water and Septic Systems. All water and sewage systems shall be in conformity with the requirements of the Harnett County Department of Health and Public Utilities and shall be inspected and approved by the same. Section 3. Easements. The Declarant reserves unto itself, it's successors and assigns, in addition to any easements of record, a perpetual, alienable and releasable easement and right, on, over and under the ground to erect, install, maintain and use electric and telephone poles, wires, cables, conduits, sewers, water mains, water drainage, provisions and facilities and other suitable equipment, gas, water, sewer, water drainage, storm drains, ditches and other public convenience or utilities and fences including wooden, brick, metal materials or vegetation on, in or over ten (10) feet around the perimeter of each lot. These easements and rights expressly include the right to cut or not cut any trees, bushes, or shrubbery, and to bury lot debris, 0 make any grading of the soil, or to take any other similar action reasonably necessary to provide economical and safe utility installation and to maintain reasonable standards of health, safety and appearance. Section 4. Utilities. All telephone and other utility lines, to include electric and connections between the main utility lines and residence and other buildings located on each building site shall be concealed and located underground so as not to be visible once construction of the dwelling is complete. Declarant reserves the right to contract on behalf of each lot owner with Central Electric Membership Corporation, or its successors and assigns, for street lighting service. Upon acceptance of a deed to a lot, each owner agrees to pay Central Electric Membership Corporation, the continuing monthly payment therefore as approved by the North Carolina Utilities Commission, or its successor. ARTICLE VI WEST LANDING at THE SUMMMIT OWNERS ASSOCIATION MEMBERSHIP AND VOTING RIGHTS Section 1. Membership. Declarant and every Owner of a Lot which is subject to assessment by the Association shall be a Member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment. The foregoing is not intended to include persons or entities who hold an interest merely as security for the performance of an obligation. Section 2. Voting Rights. The voting rights of the membership shall be appurtenant to the ownership of the Lots. There shall be two (2) classes of membership with respect to voting rights: (a) Class A Members. Class A Members shall be all Owners of Lots except those owned by the Class B Member (as hereinafter defined). When more than one person owns an interest (other than a leasehold or security interest) in any Lot, all such persons shall be Members and the voting rights appurtenant to their Lot shall be exercised as they, among themselves, determine; but fractional voting shall not be allowed, and in no event shall more than one vote be cast with respect to any Lot. Class A Members shall be entitled to one (1) vote for each Lot owned. Lots owned by Class A Members shall be "Class A Lots ". (b) Class B Member. The Class B Member shall be the Declarant. Subject to the provisions of this subsection, Declarant shall be entitled to ten (10) votes for each Lot that it owns (each such Lot being a "Class B Lot "). The Class B Membership shall cease and be converted to a Class A membership respectively upon the happening of either of the following events, whichever occurs earlier: (1) When the total aggregate votes outstanding of Class A equals the total votes outstanding in the Class B Membership; or (ii) on January 1, 2020. Section 3. Declarant's Right ppoint Directors and Officers of the Association. Notwithstanding any other provision of this Declaration or the Bylaws, until the expiration of the Declarant Control Period, Declarant may, in its discretion, appoint and remove all of the Directors and officers of the Association. 10 Declarant's intent to exercise or continue to exercise that right shall be set forth in the notice of each annual meeting of the Members. See '47F-3- 103(d) of the Act. ARTICLE VII PROPERTY RIGHTS Section 1. Owners' Easements of Enjoyment and Access. Except as limited by Rules and Regulations adopted by the Members and/or the Board of Directors, every Owner shall have a right and easement of enjoyment in, use of and access to, from, and over the Association Common Area, which right and easement shall be appurtenant to and shall pass with title to every Lot, subject to: (a) the right of the Association, after notice and an opportunity to be heard, to suspend the voting rights of an Owner and the right of an Owner to use the Association Common Area and facilities thereon for any period during which any assessment against his Lot remains unpaid for a period of thirty (30) days or longer, or for a period not to exceed sixty (60) days for any infraction of the published rules and regulations of the Association, provided, however that the Association may not suspend an Owner's right to use of any Association Common Area providing access or utilities to his Lot. (b) the right of the Association to dedicate or transfer all or any part of the Association Common Area to any public agency, authority or utility for such purposes and subject to such conditions as may be agreed upon by the Members. No such dedication or transfer shall be effective unless Members entitled to at least eighty percent (80 %) of the votes of the Association agree to such dedication, sale or transfer, provided that this subsection shall not preclude the Board of Directors of the Association from granting easements for the installation and maintenance of sewage, utility and drainage facilities upon, over, under and across the Association Common Area without the consent of the Members when such easements, in the opinion of the Board, are necessary for the convenient use and enjoyment of the Properties. Notwithstanding anything herein to the contrary, the Association Common Area shall be preserved to the perpetual benefit of the Owners Section 2. Conveyance of Title To The Association. Declarant covenants, for itself, its successors and assigns, that Declarant will convey to the Association title to those portions of the Association Common Area to be owned in fee by the Association. Declarant hereby reserves and grants (regardless of whether or not such reservation and grant is specifically set forth in such deed), for itself and its successors and assigns, an easement over, under, across and through the Association Common Area so long as it owns any Lot within the Properties, for the purpose of constructing any improvements on the Association Common Area and/or the Lots as it deems necessary or advisable. Except as otherwise stated herein, all conveyances by Declarant to the Association shall be free and clear of all encumbrances and liens (including statutory liens of laborers and materialmen pursuant to Article 2 of Chapter 44A of the North Carolina General Statutes) except this Declaration, restrictive covenants applicable to the Subdivision, utility, drainage, greenway and other easements of record or shown on the recorded plats of the Subdivision, and the lien of ad valorem taxes not yet due and payable. Any improvements placed on the Association Common Area by Declarant shall become the property of the Association upon completion of such improvements, except utilities owned and maintained by a governmental entity, or a public or private utility company. 11 Section 3. Regulation and Maintenance of Association Common Area. It is the intent of Declarant that the Association Common Area (whether owned by the Association in fee or by easement) be preserved to the perpetual benefit of the Owners within the Subdivision. To that end, the Declarant, by recording any plat or map of any phase or section of the Subdivision, grants to the Association an easement over and across that portion of any Lot within such phase or section on which an Association Common Area easement lies for the purpose of enabling the Association to take action permitted by subsections (b) and (c) of this Section 3. (a) Rights and Responsibilities of the Lot Owners. Each Owner of a Lot upon which an Association Common Area easement lies shall pay all property taxes and other assessments levied against his Lot, including that portion of such tax or assessment as is attributable to such Association Common Area easement. Notwithstanding any other provision of this Declaration, no Owner or other person shall, without the prior written consent of the Association: (1) remove any trees or vegetation from Association Common Area; (2) erect gates, fences, buildings or other structures on any Association Common Area; (3) place any garbage receptacles on or in any Association Common Area; (4) fill or excavate any Association Common Area or any part thereof, or (5) plant vegetation on or otherwise restrict or interfere with the use, maintenance, and preservation of any Association Common Area. It is the intent of the Declarant that an Association Common Area easement shall be maintained in the same state as when the Lot upon which such easement lies was conveyed to an Owner. If an Owner of a Lot on which an Association Common Area easement lies fails to maintain the easement area as provided herein, whether by act or omission, the Association shall have the right to enter upon such Owner's Lot for the purpose of maintaining same and shall have the right to charge such Owner with the costs of such maintenance, which costs, if not paid within thirty (30) days after demand for payment is made by the Association, shall be collected in the same manner and shall incur the same late charges, interest and costs of collection as set forth in Section 7 of this Article VIII of this Declaration. (b) Rights and Responsibilities of the Association. The Association shall have the right and obligation to ensure that the Association Common Area is preserved to the perpetual benefit of the Owners and, to that end, shall: (i) maintain the Association Common Area in its natural or improved state, as appropriate, and keep it free of impediments to its free use by the Owners, subject, however, to easements of record and any limitations on such use provided in this Declaration or rules and regulations adopted by the Association as provided herein and in the Bylaws; (ii) procure and maintain adequate liability insurance covering the Association and its Members against any loss or damage suffered by any person, including the Owner of the Lot upon which an Association Common Area easement lies, resulting from use of the Association Common Area; and (iii) pay all property taxes and other assessments levied against all Association Common Area owned in fee by the Association. (c) Association's Right of Entry for Maintenance of Association Common Area Easements. The Association and its employees, agents, contractors and subcontractors shall have a nonexclusive right and easement at all times to enter upon any portion of a Lot reserved or designated as an Association Common Area easement, and any other portion of the Lot to the extent necessary to gain access and maintain improvements and facilities within the Association Common Area easement, and no 12 such entry shall be deemed a trespass. To the extent practicable, the Association shall give reasonable oral notice to the Owner or occupant of such Lot. ARTICLE VIII ANNUAL, MAINTENANCE, AND SPECIAL ASSESSMENTS Section 1. Creation of the Lien and Personal Obligation of Assessments. Each Owner of any Lot, by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association annual assessments and special assessments, such assessments to be established and collected as hereinafter provided. All assessments which are unpaid when due, together with interest and late charges set forth in Section 7 of this Article VIII and all costs of collection, including reasonable attorneys' fees, shall be a charge on the land and, as provided in '47F-3- 116 of the Act, shall be a continuing lien upon the Lot against which such assessment is made. Each such assessment or charge, together with interest and costs of collection, including reasonable attorneys' fees, shall also be the personal or corporate obligation of the person(s) or firm(s) owning such Lot at the time when the assessment fell due, but such personal obligation shall not be imposed upon such Owner's successors in title unless expressly assumed by them. Although unpaid assessments and charges are not the personal obligation of such Owner's successors in title unless expressly assumed by them, the unpaid assessments and charges shall continue to be a lien upon the Lot against which the assessment or charge was made. Any monetary fines imposed against an Owner pursuant to the Bylaws shall constitute a lien against the Lot of such Owner to the same extent as if such fine were an assessment against such Lot. Section 2. Purposes of Assessments. The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety and welfare of the residents of the Subdivision and, in particular, for: (i) acquisition, improvement, and maintenance of properties, services and facilities related to the use and enjoyment of the Association Common Area; (ii) maintenance, repair and reconstruction of the Association Common Area and improvements thereon, including, without limitation, storm water drainage facilities, signs, fencing and, including, without limitation, the cost of repair, replacement and additions thereto and the cost of labor, equipment, materials, management and supervision thereof, (iii) payment of taxes and public assessments levied against Association Common Area owned by the Association in fee; (iv) procurement of insurance; (v) employment of attorneys, accountants and other persons or firms for Association business; (vi) payment of principal and interest on funds borrowed for Association purposes; and (vii) such other needs as may arise. Section 3. Maximum Annual Assessment. Until December 31, 2013, the Maximum Annual Assessment shall be $60.00 for each Class A Lot. There will be no Annual Assessment for a Class B Lot. (a) Beginning on January 1, 2014, and on January 1 of each year thereafter, the Maximum Annual Assessment for Class A Lots may be increased by the Declarant or the Board above that established above, provided, however, that any increase in an annual assessment as provided herein above shall not exceed five percent (5 %) of the preceding annual assessment. 13 (b) The Maximum Annual Assessments for Class A Lots may be increased in any year by more than the 5% limit in subsection (a) above if such increase is approved by the Class B Member and by not less than two - thirds (2/3) of the votes cast by the Class A Members present, in person or by proxy, at a meeting duly called for that purpose. The provisions of this subsection shall not apply to, nor be a limitation upon, any change in the maximum annual assessment incident to a merger of consolidation as provided in '47F-2- 121 of the Act. Section 4. Date of Commencement of Annual Assessments: Amount of Assessments: Certificate of Payment: Ratification of Bud _ egts. Unless a different commencement date is set by the Board of Directors, the annual assessments provided for herein shall commence as to a Lot on the first day of the month after the Lot is subjected to this Declaration. Subject to the provisions of this Section, the Board of Directors may fix the annual assessment for Class A Lots at any amount not in excess of the Maximum Annual Assessment in effect for the appropriate assessment year. There shall be no annual assessment for Class B Lots. Unless a lower amount is set by the Board of Directors, the initial annual assessment shall be the "Maximum Annual Assessment" set forth in Section 3 of this Article and shall be prorated according to the number of months remaining in the calendar year. Annual assessments shall be fixed at a uniform rate for all Class A Lots and may be collected on a yearly, semiannual, or quarterly basis, as determined by the Board of Directors. The Association shall, upon demand, and for such reasonable charge as the Board of Directors or management company may determine, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid. If such certificate states that an assessment has been paid, such certificate shall be conclusive evidence of payment. The Board of Directors shall adopt a proposed budget for the Association at least annually. Within thirty (30) days after adoption of the proposed budget, the Board of Directors shall send a copy of the proposed budget to the Members and shall give written notice to the Members of a meeting of the Members to consider ratification of the budget, such meeting to be held not sooner than ten (10) days nor more than sixty (60) days after the mailing of such notice. Such meeting may, but need not be, combined with the annual meeting of the Members. There shall be no requirement that a quorum be present in order to vote on ratification of the budget (although a quorum must be present to vote on other matters). The budget shall be deemed ratified unless at that meeting Members having a majority of the votes of the entire membership vote to reject the budget. Notwithstanding the foregoing, if the budget provides for annual assessments not greater than ten percent (10 %) larger than the assessment in effect for the immediately preceding year, such budget shall be deemed ratified unless Members having at least 80% of the votes of the entire membership vote to reject the budget. If the proposed budget is rejected, the budget last ratified by the Members shall be continued until such time as the Members ratify a subsequent budget proposed by the Board. Subject to the provisions of this Section, at least twenty (20) days before January 1 of each year, the Board of Directors shall fix the amount of the annual assessment against each Lot. At least ten (10) days before January 1 of each year, the Board of Directors shall send written notice of such assessment to every Owner subject thereto. 14 Section 5. Special Assessments. In addition to the annual assessments authorized above, the Association may levy, in any assessment year, special assessments for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Association Common Area, including fixtures and personal property related thereto, for repayment of indebtedness and interest thereon, or for any other purpose, provided that any such assessment shall have the same assent of the Members as provided in Section 3(b) of this Article and further provided that the special assessment for a Class B Lot shall always be one -fourth (1/4) of the special assessment for a Class A Lot. Special assessments shall be fixed at a uniform rate for all Lots within each Class and may be collected on a yearly, semiannual, or quarterly basis as determined by the Board of Directors. Section 6. Notice of (quorum for any Action Authorized Under Sections 3(b) and 5. Written notice of any meeting called for the purpose of taking any action authorized under Section 3(b) or 5 shall be sent to all Members not less than fifteen (15) days nor more than forty -five (45) days prior to the meeting. At such meeting, the presence of Members or of proxies entitled to cast sixty percent (60 %) of the votes of each Class of Lots shall constitute a quorum. If the required quorum is not present at any meeting, another meeting may be called subject to the same notice requirement, and if the meeting is called for a date not later than sixty (60) days after the date of the first meeting, the required quorum at the subsequent meeting shall be one -half (1/2) of the required quorum at the preceding meeting. Section 7. Effect of Nonpayment of Assessments: Remedies. An assessment not paid within fifteen (15) days after the due date shall incur such late charge as the Board of Directors may from time to time establish, and, if not paid within thirty (30) days after the due date, shall also bear interest from the due date at a rate established by the Board of Directors from time to time, but in no event shall such rate be greater than fifteen percent (15 %) per annum or the maximum rate allowable by law, whichever is less, and the Association may bring an action at law or in equity against the Owner personally obligated to pay the same and/or foreclose the lien against the Lot for which such assessment is due, and shall have the right and power to take such action as is necessary to conduct such foreclosure and convey the Lot to the purchaser at the foreclosure proceeding, including, without limitation, the right to appoint a trustee or to request appointment of a commissioner to conduct the foreclosure. Interest, late payment charges, costs and reasonable attorneys' fees of such action or foreclosure shall be added to the amount of such assessment. No Owner may waive or otherwise escape liability for the assessments provided for herein by non -use of the Association Common Area or by abandonment of his Lot. Section 8. Subordination of the Lien to Mortgages. The liens provided for herein shall be subordinate to the lien of any first mortgage or first deed of trust on a Lot. Sale or transfer of any Lot shall not affect any assessment lien; however, the sale or transfer of a Lot pursuant to foreclosure of a first mortgage or deed of trust, or any proceeding in lieu of foreclosure thereof, shall extinguish the lien of any assessments which became due prior to the date of conveyance pursuant to such foreclosure. No such sale or transfer shall relieve such Lot from liability for any assessments thereafter becoming due or from the lien thereof, but the liens provided for herein shall continue to be subordinate to the lien of any first mortgage or deed of trust. Section 9. Exempt Property. All Association Common Area owned in fee by the Association, all property dedicated to and accepted by a public authority, and all property owned by a charitable or 15 nonprofit organization exempt from taxation by the laws of the State of North Carolina shall be exempt from the assessments created herein. Notwithstanding the foregoing, no land or improvements devoted to residential use shall be exempt from said assessments. Section 10. Working Capital Fund. At the time of closing of the initial sale of each Dwelling constructed on a Lot, a sum equal to one -fourth (1/4) of the annual assessment for Class A Lots in effect at the time of such sale shall be collected from the purchaser of such Lot and transferred to the Association as part of its working capital. The purpose of the working capital fund is to ensure that the Association will have adequate cash available to meet its initial operating expenses or to acquire additional equipment or services deemed by the Board of Directors to be necessary or desirable. Amounts paid to the Association pursuant to this Section shall not be considered as an advance payment of any regular assessment. Section 11. Declarant's Obligation to Fund Operating Deficits. During the Declarant Control Period, Declarant shall not be obligated to fund any deficit between the normal operating expenses of the Association and the monies received by the Association from the Owners assessments. Any monies paid at any time by Declarant to a third party for or on behalf of the Association shall become an obligation of the Association and the total sum of said monies shall be reimbursed directly to the Declarant by the Association. ARTWT F TX GENERAL PROVISIONS Section 1. Enforcement. The Association and each Owner (including the Declarant), shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants, rules, regulations, reservations, liens and charges now or hereafter imposed by the provisions of this Declaration, the Act, the Bylaws or rules and regulations adopted by the Association. Failure by the Association or an Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter. The Association shall not be obligated to take action to enforce any covenant, restriction or rule which the Board reasonably determines is, or is likely to be construed as, inconsistent with applicable law, or in any case in which the Board reasonably determines that the Association's position is not strong enough to justify taking enforcement actions, or any case in which the Board reasonably determines that the cost of enforcement outweighs the benefit to be gained by enforcement. Any such determination shall not be construed as a waiver of the right to enforce such provisions under other circumstances or to stop the Association from enforcing any other covenant, restriction or rule. Section 2. Severability. If any provision of this Declaration is held by a court of competent jurisdiction to be invalid or void, such provision shall be deemed severable from the remaining provisions of the Declaration and shall not be deemed to nullify or affect and other provision hereof, which shall remain in full force and effect. If any such provision is deemed invalid due to its scope or breadth, such provision shall be deemed valid to the extent of the scope or breadth permitted by law. 16 If any item, term or provision contained in this Declaration is in conflict with any applicable federal, state or local laws, this Declaration shall be affected only as to its application to such item, term or provision, and shall in all other respects remain in full force and effect. Section 3. Amendment. The covenants and restrictions of this Declaration shall run with and bind the land, for a term of twenty -five (25) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years. Notwithstanding anything contained herein, these restrictive covenants may be amended at any time by the Declarant, its successors or assigns, so long as Declarant, its successors or assigns, owns any one lot contained in Forest Ridge Subdivision. This Declaration may also be amended during the first twenty -five year period by an instrument signed by the Owners of not less than seventy -five percent (75 %) of the Lots, and thereafter by an instrument signed by the Owners of not less than seventy -five percent (75 %) of the Lots. Notwithstanding the foregoing, this Declaration may be terminated only upon the signed written assent of Members entitled to at least eighty percent (80 %) of the votes of the Association. Notwithstanding the foregoing, Article IV, Section 19 shall not be amended or modified without the express written consent of the U.S. Army Corps of Engineers, Wilmington District. Section 4. Rules and Regulations. The Board of Directors shall have the authority to adopt additional rules and regulations governing the use of the Association Common Area and the Lots and shall furnish a written copy of said rules and regulations to the Owner(s) of each Lot at least fifteen (15) days before such rules and regulations become effective. Section 5. Number and Gender. Whenever the context requires, the singular shall included the plural, and vice versa, and one gender shall include all. Section 6. Notice. Any notice required to be sent to any Owner under the provisions of this Declaration shall be deemed to have been properly sent, and notice thereby given, when mailed, postage pre- paid, to the last known address of the person who appears as Owner. Notice to one or more co- owners of a lot shall constitute notice of all co- owners. IN WITNESS WHEREOF, Declarant has caused this instrument to be executed in its name by its member - manager, as of the date set forth in the notary acknowledgments below. Diversified Holdings, LLC. By: E. Frank Weaver III, Manager 17 NORTH CAROLINA CUMBERLAND COUNTY I, L^�l. r-, (1`L c' j , the undersigned Notary Public of the County and State aforesaid, certify that :-T� e 4iVk WL -%0tQ -, personally came before me this day and acknowledged that he is the Manager of Diversified Holdings, LLC., a North Carolina limited liability company, and that by authority duly given and as an act of such entity, he signed the foregoing instrument in its name on its behalf as its act and deed. Witness my hand and notarial taV or seal this the day of February, 2013. My Co# si n w :1 1 , T Notary Public W-V