authentisign id: 269ad8a3-f7db-4938-9bc6-efe21f3ad78b … · per the management agreement, these...

Resale CertificateVillas at Harbour Pointe

of 7Confirmation # : EH2685743

Current Owner: paul amtmannProperty Address: 10957 w. villa monte dr.mukilteo, WA 98275

Requestor Name: paul amtmannRequestor Phone: 206-527-1484

Date Prepared: 08-03-2017

This Resale Certificate has been prepared in accordance with the requirements of RCW 64.34.425 (Section 4-107 of theWashington Condominium Act) on the Association by the undersigned authorized agent or officer of the Association andits respresentatives (the "Preparer"). The information stated herein is based on the books and records of the Associationand the actual knowledge of the Preparer. Neither the Association nor the Preparer guarantee the accuracy of theinformation contained herein. The information contained herein is as of the date of execution stated above(the "DatePrepared") and neither the Association nor the Preparer assume any obligation to supplement or update the informationcontained herein should any change in circumstances thereafter occur or be brought to the attention of the Association orthe Preparer.

# Question Response

Please review RCW 64.34.425 and the Seller and Buyer's responsibilities relative to theWashington State Condominium Act. New Buyer is obligated to read and review ALLdocuments pertaining to the Association. This includes ALL attachments. It is the buyer'sresponsibility to understand the governing documents as well as the Fees and Fines, Move inand Out Fees,Reserve Study, Budget, New Carbon Monoxide Detector Law, Reserve andBudget Disclaimer and all rental/leasing restrictions.

1. DECLARATION (Copy attached) a. The Declaration for the Condominium(the "Declaration") was recorded in the real estaterecords of:

SnohomishCounty, WA

2. BYLAWS (Copy attached) a. The Bylaws for the Association are dated:

Attached

3. RULES AND REGULATIONS (Copy attached) a. The Rules and Regulations for the Association are attached.

Attached

4. Any Rights of First Refusal. No

5. ASSESSMENTS a. The current monthly common expense assessment (dues) against the Unit is ($):

387.51

b. As of the Effective Date of this Certificate, there are common expense assessments,excluding any Special Assessments or Supplemental Budget Assessments disclosed below(refer to question below for Special Assessment and Supplemental Budget Assessmentamount(s)owing), which have been assessed against the Unit, are currently due and payable,but are as yet unpaid in the amount of ($):

387.51

c. Special Assessments and Supplemental Budget Assessments, including sums/paymentswhich are not yet due, have been levied against the Unit in the total amount of ($):

YES

Authentisign ID: 269AD8A3-F7DB-4938-9BC6-EFE21F3AD78BAuthentisign ID: 269AD8A3-F7DB-4938-9BC6-EFE21F3AD78B



# Question ResponseTo repair roofs and painting. $802.00 due on 12/1/2017 and $802.00 due on 12/1/2018

Of that amount, currently due now and payable is ($): 0.

6. DELINQUENT ASSESSMENT RECEIVABLES As of the last day of the month prior tothe current month, common expense assessments or Special Assessments/SupplementalBudget Assessments against any unit in the condominium that are past due over thirty days byALL homeowners are as follows. (The is the entire sum of all delinquent units in theAssociation and IS NOT for this individual unit) Aggregate total for ALL units):

1294.47

7. DELINQUENT ASSOCIATION OBLIGATIONS As of the last day of the month prior tothe current month there are obligations (past due unpaid items) of the Association which arepast due over thirty days as follows (Past due, unpaid Association bills) :

0

8. FINE SCHEDULE Fines for violations of the Declaration, Bylaws and Rules andRegulations of the Association are stated in the Rules. Please Review Rules and Regulationsand adopted resolutions in depth and owners' responsibilities.

Boards of Directors may revise and/or change and/or update the Rules and Regulationsperiodically.

The Board ofDirectors mayrevise fees and

finesperiodically.

9. FEES LEVIED In addition to the amounts disclosed above, the following fees are payableby unit owners. Per the management agreement, these fees are subject to change. Thisincludes all fees due to SUHRCO Residential Properties that are required to process the resaleof the unit: New Owner Set Up Fee-$375, Lender Questionnaires-$100-$200;Escrow/Demand Payoff-$99. The Association may have a Move In Fee due to Buyer. All newowners will be charged a $10.00 coupon processing fee. BOARDS OF DIRECTORS MAYREVISE THE RULES AND REGULATIONS AND INCREASE FEES AND FINESPERIODICALLY. Resale Certificate-$275;

The Board of Directors may revise fees and fines periodically.

10. ANTICIPATED REPAIRS AND REPLACEMENTS Are there any anticipated repair orreplacement costs in excess of five percent of the annual budget of the Association that havebeen approved by the Board of Directors?

No

11. RESERVES FOR REPAIRS AND REPLACEMENTS a. The Association has in reserves for repair or replacement of the common elements orportions thereof a deposit of ($):

603603.40

c. The reserves of the Association are maintained in segregated accounts requiring thesignature of two Association officers or directors for withdrawals as required by RCW64.34.372.

Yes

12. ANNUAL FINANCIAL STATEMENTS The most current audited annual financialstatement is attached (December previous year).

ATTACHED

13. PERIODIC FINANCIAL STATEMENTS (Copy attached) Attached hereto are a balancesheet and a revenue and expense statement of the Association prepared on an accrual basis,which are current within 90 days of the date of this Certificate.

ATTACHED

14. BUDGET The current operating budget is attached. ATTACHED




# Question Response15. Are there any unsatisfied judgments against the Association or any pending suits or legalproceedings in which the Association is a plaintiff or defendant?

No

16. INSURANCE (Insurance Information attached) a. Attached hereto is a summary of any insurance coverage provided for the benefit of unitowners. If the unit owner needs their unit and lender (mortgagee clause) added to a certificate,you must contact the insurance agent directly.

ATTACHED

b. The insurance agent holding the Association's Master Insurance Policy and FidelityInsurance Policy is:

The Partners Group4254555640

17. NON-CONFORMING UNIT ALTERATIONS Are there any known non-conforming unitalterations? See Exhibits 17 & 19 below.

See Comments

Minutes All availableminutes are

attached.

18. DECLARANT OWNED UNITS AND CONTROL a. As of the Effective Date of this Certificate, are there any units still owned by theDeclarant?

No

b. Control of the Association was transferred by the Declarant to the unit owners on: 1998

19. CODE VIOLATIONS Are there any conditions which are in violation of applicablecodes? See Exhibits 17 & 19 below.

See Comments

20. LEASED PROPERTY Are there any leases, the termination or expiration of which mayterminate the Condominium or reduce its size?

No

21. NATURE OF INTEREST The title of the Unit is held as: Fee Simple

22. UNIT SALES AND OCCUPANCY a. The following is the unit sale and occupancy information: Please note that this is not astatutory question per RCW 64.34.425. We are providing it as a courtesy to the Seller, Buyerand Lender but the numbers are based on information obtained from the Association andSUHRCO cannot warrant its accuracy.

92% Owner Occupied

88 Owner Occupied 8 Rentals

b. Does any single entity have 10% or more voting rights? No

23. COMMON AREAS Do the unit owners have sole ownership interest in and the right tothe use of, the common elements and limited common elements in the Condominium?

Yes




# Question Response24. COMPLETION OF CONSTRUCTION Are the units, common elements and limitedcommon elements completed for all phases?

Yes

26. CONVERSION Was the Condominium created by conversion to condominium status ofan existing building occupied by tenants?

No

27. NON-CONFORMING USE Does the Condominium constitute a legal non-conforminguse? See Exhibits 17 & 19 below.

No

28. PROFESSIONAL MANAGEMENT a. The Condominium is managed by a professional management company. A copy of themanagement contract is available for review upon request.

SUHRCOResidential

Properties, LLC

b. The management agent is: SUHRCO Residential Properties, LLC

2010 156th AVE NEBellevue, WA 98007

c. The term of the management contract is: 1 year

d. Does the termination of the management contract require payment of a penalty oradvance notice of more than 90 days?

No

29. QUALIFIED WARRANTY. Are the common elements covered by a qualified warrantyunder RCW Chapter 64.35?

No

30. RESERVE STUDY. ATTACHED

31. DOCUMENTS ATTACHED. (Initial Below for Each Document Enclosed.)

Owner Initials______________ Condominium Declaration ______________ Bylaws______________ Rules and Regulations ______________ Audited Financials______________ Periodic Financial Statement

______________ Current Operating Budget ______________ Insurance Summary______________ Reserve Study

Per RCW 64.34.425, the Seller and Buyer of the unit must sign this form to verify issuance andreceipt of this information.

Seller's Signature _________________________________

Buyer's Signature _________________________________




STATUTORY NOTES: RCW 64.34.425 requires every condominium association, within ten days after a request by aunit owner, to furnish a certificate containing the information provided above, together with any other informationreasonably requested by mortgagees of prospective purchasers of units. Information requested generally by FNMA,FHLMC, GNMA, the VA and HUD is deemed reasonable, provided such information is reasonably available to theassociation. The information requested in items 21 through 29 is information generally required by mortgagees ofprospective purchasers in this State and those items are included in this Resale Certificate form to avoid the necessity ofassociations filing out a multiplicity of different forms.

The selling unit owner is also required by RCW 64.34.425 to sign this Certificate, but is not liable to the Buyer for anyerroneous information provided by the Association and included in the Certificate unless and to the extent the Unit Ownerhad actual knowledge of that erroneous information.

A Buyer is not liable for any unpaid assessment or fee against the Unit as of the Effective Date of this Certificate greaterthan the amount set forth in the Certificate unless and to the extent the Buyer had actual knowledge that a greater amountwas due. Buyer is cautioned to contact the Association at the address below prior to closing of the sale for updated pay-off amounts to avoid liability for amounts assessed against the Unit after the Effective Date of this Certificate.

A unit owner is not liable to a Buyer for the failure or delay of the Association to provide a Resale Certificate in a timelymanner, but the Buyer's contract is voidable by the Buyer until the Certificate has been provided and for five daysthereafter or until conveyance, whichever occurs first. This Certificate is prepared by the managing agent of the Condominium Association, who is authorized to make thisCertificate on behalf of the Association. To the best of our knowledge and belief, the foregoing is correct.

SUHRCO Residential Properties, LLC as Managing Agent by contract for the Association.

Preparer: Annette C. Cox on behalf of SUHRCO Residential Properties, LLC

The information above was obtained by the following representative of the project's Homeowners Association

Name: Annette CoxTitle: Manager of Administration

Phone: 425-455-0900Date: 08-03-2017

Signature




CommentsRESALE CERTIFICATE EXHIBITS 17 and 19Exhibit #17: Non-Conforming Alterations

SUHRCO and the Board of Directors have not inspected the unit in question and are not aware of any alterations orimprovements to the unit or the limited common elements that violate any provisions of the Declaration. If changes havenot had prior Board approval, the owner of the unit may be required to make changes necessary to return it to its originalcondition. It is recommended that the purchaser ask the owner/seller of the unit in question whether they have made anychanges that may not conform.

Exhibit #19: Code Violations

SUHRCO and the Board of Directors have not inspected the unit in question and are not aware of any violations of healthor building codes with respect to the unit, the limited common elements assigned thereto, or any other portion of thecondominium. It is recommended that the purchaser ask the owner/seller of the unit in question whether they know of anyhealth or building code violations.

The Board of Directors has not inspected the unit in question and is not aware of any changes to the ownership of theparking stall or storage spaces assigned to the units other than those recorded as an amendment to the Declaration. TheDeclaration sets forth specific steps required before any changes on ownership of parking stalls or storage spaces arerecognized by the Association. Please be advised that if there are parking stalls or storage spaces that are not assigned tothe proper unit, the owners of the units involved will be required to strictly comply with the Declaration, which mayinclude either returning ownership of the parking stall and storage unit to those recognized in the Declaration as theowner, or recording a document upon the agreement of all parties (and approval of the Board), evidencing the currentownership.

It is recommended that the purchaser ask the owner/seller of the unit in question whether they have made any changes ofparking stalls or storage units.

RESALE DISCLAIMERS

NEITHER THE ASSOCIATION NOR THE MANAGING AGENT AND ITS REPRESENTATIVES MAKE ANYWARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF FITNESS FOR APARTICULAR PURPOSE OR MERCHANTABILITY, WITH RESPECT TO THE INFORMATION CONTAINEDHEREIN. NEITHER THE ASSOCIATION NOR THE MANAGING AGENT HAVE RESEARCHED ORINVESTIGATED ANY INFORMATION CONTAINED HEREIN AND ARE RELYING ON CURRENT ACTUALKNOWLEDGE AND A REVIEW OF ATTACHED DOCUMENTS ONLY.

THE ASSOCIATION, MANAGING AGENT AND ITS REPRESENTATIVES EXPRESSLY DISCLAIM ANY ANDALL LIABILITY FOR ANY AND ALL LOSSES, DAMAGES, OR CAUSES OF ACTION INCURRED BY ANYBUYER OR SELLER, WHETHER DIRECT, INDIRECT, CONSEQUENTIAL OR INCIDENTAL ARISING OUT OFOR RELATING TO RELIANCE ON THE RESALE CERTIFICATE. BUYER IS INSTRUCTED TO SEEKINDEPENDENT LEGAL, FINANCIAL AND/OR OTHER PROFESSIONAL COUNSEL WITH ANY QUESTIONSOR CONCERNS, AT BUYER'S EXPENSE.

The Client/Requestor agrees, to the fullest extent permitted by Washington State Law, to limit the liability of theManagement Company and its employees and/or Association officers, directors, partners and Association employees toany and all claims, losses, costs, and damages of any nature whatsoever or claims expenses from any cause or causes,including Attorneys fees and costs and expert witness fees and costs as a result of the above documents content, so thatthe total aggregate liability of the Management Company and its employees and/or Association officers, directors,




partners and Association employees and to all those named shall not exceed the cost paid by Client/Requestor for theseservices rendered.


Annual Financials-Unaudited

Villas at Harbour Pointe

Bylaws


BYLAWS OF

THE VILLAS AT HARBOUR POINTE

OWNERS ASSOCIATION

The following are Bylaws of The Villas at Harbour Pointe Owners Association, a corporation organized under the Washington Nonprofit Corporation Act (RCW 24.03, the "Nonprofit Corporation Act"). These Bylaws provide for operation of The Villas at Harbour Pointe, a condominium (the "Condominium") located in Mukilteo, Washington, created pursuant to the Washington Condominium Act (RCW 64.34, the "Condominium Act"). They apply to the entire condominium, each Unit therein, and all common elements. Each Owner automatically, by virtue of such ownership, becomes a member of the Association. All present and future Owners, Mortgagees and other encumbrances, lessees, tenants, licensees, and occupants of Units, and their guests and employees, and any other person who may use the facilities of the condominium are subject to these Bylaws, the Condominium Declaration for The Villas at Harbour Pointe, a condominium, as it may from time to time be amended (the "Declaration") and the rules and ret,>ulations pertaining to use and operation of the condominium.

Words and phrases that are defined in the Declaration shall have the same meaning in these Bylaws.

ARTICLE !. MEMBERSHIP· VOTING REGISTER.

Section 1.1 Membership. The Owners of Units in the condominium shaU constitute the Owners Association. Corporations, partnerships, associations, and other legal entities, trustees under an express trust, and other fiduciaries, as well as natural persons may be members of the Association. Owners· of a Unit as joint tenants, tenants in common, community property, or other ownership involving more than one Owner, shall be joint members of the Association, but the sum total of their vote shall not exceed the voting power aUocated to the Units owned.

Section 1.2 Number of Votes. The total voting power equals the number of Units in the condominium and the total number of votes available to the Owner or Owners of each Unit shall be equal to one vote for each Unit owned.

. Section !.3 Voting by Multiple Owners. If only one of the multiple Owners of a Unit is present at a meeting of the Association, the Owner is entitled to cast all the votes allocated to that Unit. If more than one of the multiple Owners are present, the votes allocated to that Unit may be cast only in accordance with the agreement of a majority in interest of the multiple Owners. There is majority agreement if any one of the multiple Owners casts the votes allocated to that Unit without protest being made promptly to the person presiding over the meeting by any of the other Owners of the Unit.

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Section 1.4 Voting Representative. An Owner may, by written notice to the Board, designate a voting representative for the Unit. The voting representative need not be an Owner. The designation may be revoked at any time by written notice to the Board from a person having an ownership interest in a Unit, or by actual notice to the Board of the death or judicially declared incompetence of any person with an ownership interest in the Unit, except in cases in which the person designated is a Mortgagee of the Unit. This power of designation and revocation may be exercised by the guardian of an Owner, the attorney-in- fact of the Owner under a durable power of attorney, or the administrators or executors of an Owner's estate. If no designation has been made, or if a designation has been revoked and no new designation has been made, the voting representative of each Unit shall be the group composed of all of its Owners. If a Unit is owned by husband and wife and only one of them is at a meeting, the one who is present will represent the marital community.

Section 1.5 Voting by Proxy; Pledged Votes to Mortgagee. Votes allocated to a Unit may be cast pursuant to a proxy duly executed by an Owner. If a Unit is owned by more than one person, each Owner of a Unit may vote or register protest to the casting of votes by the other Owners of the Unit through a duly executed proxy. A Unit Owner may not revoke a proxy given pursuant to this Section except by actual notice of revocation to the person presiding over a meeting of the Association. A proxy is void if it is not dated or purports to be revocable without notice. Unless stated otherwise in the proxy a proxy terminates II months after its date of issuance. An Owner may, but shall not be obligated to, pledge his or her vote on all issues or on specific issues to a Mortgagee. If an Owner is in default under a first Mortgage on the Unit for one year or more, the Mortgagee shall automatically be authorized to declare at any time thereafter that the Owner has pledged his or her vote on all issues to the Mortgagee during the continuance of the default. If the Board has been notified of any such pledge to a Mortgagee, only the vote of the Mortgagee will be recognized on the issues that are subject to the pledge.

Section 1.6 Persons Under Disability. Minors and persons declared legally incompetent shall be eligible for membership in the Association, if otherwise qualified, but shall not be permitted to vote except through a legally appointed, qualified, and acting guardian of their estate voting on their behalf, or, in the case of a minor with no legal guardian of his estate, through a parent having custody of the minor.

Section 1.7 Re[!ister of Members. The Board shall cause a register to be kept containing the names and addresses of all members of the Association. Persons who purchase an interest in a Unit shall promptly inform the Board of their interest. Persons who claim to be members of the Association shall, upon request, furnish the Board with copies of any documents under which they assert ownership of a Unit or any interest therein, and any Mortgages thereon.

ARTICLE 2. MEETINGS OF MEl\1BERS.

Section 2.1 Place. Meetings of the members of the Association shall be held at such suitable place as may be convenient to the membership and designated from time to time by the Board.

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Section 2.2 Annual Meeting. The annual meeting of the Association shall be held in the first quarter of each fiscal year on a date fixed by the Board, which date shall not be less than 10 nor more than 60 days after notice of the meeting is given to the members. At such annual meeting the Owners shall elect members to the Board or fill vacancies therein, and transact such other business as shall properly come before the meeting.

Section 2.3 Budget Meeting. Within 30 days after adoption of any proposed budget for the Association, the Board shall provide a summary of the budget to all of the members and set a date for a meeting of the members to consider ratification of the budget, which date shall be not less than 14 nor more than 60 days after mailing the summary. Unless at the meeting members holding a majority of the votes in the Association vote to reject the budget, the budget is ratified, whether or not a quorum is present for the meeting. In the event the proposed budget is rejected or the required notice for the meeting is not given, the budget last ratified by the Owners shall be continued until a budget proposed by the Board is ratified.

Section 2.4 Special Meetings. A special meeting of the Association may be called by the president, by resolution of the Board or upon the written request of a majority of the Board or upon the written request of any Owner on not less than I 0 nor more than 60 days in advance of the meeting. No business shall be transacted at a special meeting except as stated in the notice given therefor unless consented to by each of the Owners present either in person or by proxy.

Section 2.5 Notice of Meetings. It shall be the duty of the secretary to give notice of each annual, budget and special meeting such notice shall be hand-delivered or sent prepaid by first-class United States mail to the mailing address of each Unit or to any other mailing address designated in writing by the Unit Owner, to each member of the Association and to each Eligible Mortgagee, if required by Article 28 of the Declaration. The notice of any meeting shall state the time and place of the meeting and the items on the agenda to be voted on by the members, including the general nature of any proposed amendment to the Declaration or Bylaws, changes in the previously approved budget that result in a change in Assessment obligations, and any proposal to remove a director or officer. Before any meeting of the Association, any member may, in writing, waive notice of such meeting. Attendance by a member at a meeting of the Association shall be a waiver by him of timely and adequate notice unless he expressly challenges the notice when the meeting begins.

Section 2.6 Quorum. The presence in person or by proxy of members of the Association or voting representatives holding 25% of the total voting power shall constitute a guo rum for the transaction of business at any meeting of members of the Association.

Section 2. 7 Adjournment of Meetings. If any meeting of Owners cannot be organized because a quorum has not attended, the Owners present, in person or by proxy, may adjourn the meeting to a time not less than 48 hours from the time the original meeting was called.

Section 2.8 Majority Vote. Except as otherwise provided by the Condominium Act by the Declaration, or by these Bylaws, passage of any matter submitted to vote at a meeting where a quorum is present, shall require the affirmative vote of at least 51% of the votes present.

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Section 2.9 Voting by Mail. The Board may decide that voting of the members shall be by mail with respect to any particular election of the Board or with respect to adoption of any proposed amendment to the Declaration or Bylaws, or with respect to any other matter for which approval by Owners is required by the Declaration or Bylaws, in accordance with the following procedure:

(a) In case of election of directors by mail, the existing directors shall advise the Secretary in writing of the names of nominees for all directors to be elected and of a date not less than 50 days after such advice is given by which all votes are to be received. The Secretary, within five days after such advice is given, shall give written notice to all Owners of the number of directors to be elected and of the names of the nominees. The notice shall state that any such Owner may nominate an additional candidate or candidates, not to exceed. the number of directors to be elected, by notice in writing to the Secretary at the address specified in the notice, to be received on or before a specified date not less than 15 days from the date the notice is given by the Secretary. Within five days after the specified date, the Secretary shall give written notice and/or ballot to all Owners stating the number of directors to be elected, the names of all persons nominated by the Board, the names of persons nominated by members and the date by which votes of the Owners must be received by the Secretary at the address specified in the notice. Votes received after that date will not be effective. All persons elected as directors pursuant to an election by mail shall take office effective on the date specified in the notice for the receipt of votes.

(b) In the case of a vote by mail relating to any other matter, the Secretary shall give written notice and/or ballot to all Owners, which shall include a proposed written resolution setting forth a description of the proposed action and shall state that the Owners are entitled to vote by mail for or against the proposal by delivering the vote on or before a specified date not less than 20 days after the notice to the address specified in the notice. Votes received after that date shall not be effective. Any such proposal shall be adopted if approved by the affirmative vote of not less than a majority of the votes entitled to be cast on such question, unless a greater or lesser voting requirement is established by the Declaration or Bylaws for the matter in question.

(c) Delivery of a vote in writing to the specified address shall be equivalent to receipt of a vote by mail at such address for the purpose of this Section 2.3 .4.

Section 2.10 Written Ballot. At the discretion of the Board, any matter which might come before the Association at a meeting, including election of directors, may be determined by written ballot, rather than at a meeting. Ballots shall be sent to all Unit Owners in the same manner as notice of meetings, with a specified deadline for return of ballots. Ballots for such meetings must be properly executed and returned in sufficient quantity to constitute a quorum, and determination of the matter presented shall be based upon the required percentage of ballots returned, unless approval of a specified percentage of all voting power is required by law, the Declaration or these Bylaws. The vote by ballot shall be determined by the Board within 48 hours of the deadline for return of ballots. Within 10 days after the ballots have been counted,

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each Unit Owner shall be notified by mail or other delivery of written notice of the results of the ballot or that a quorum of ballots was not returned.

Section 2.11 Order of Business. The order of business at meetings of the Association shall be as follows unless dispensed with on motion:

(a) Roll call;

(b) Proof of notice of meeting or waiver of notice;

(c) Minutes of preceding meeting;

(d) Reports of officers;

(e) Reports of committees;

(f) Election of inspectors of election;

(g) Election of directors (annual meeting or special meeting called for such purpose);

(h) Unfinished business;

(i) New business;

G) Adjournment.

Section 2.12 Parliamentary Authority. In the event of dispute, the parliamentary authority for the meetings shall be the most current available edition of Robert's Rules of Order or such other published code of parliamentary procedure as shall be approved by a majority at the meeting

ARTICLE 3. BOARD OF DIRECTORS .

Section 3.1 Number, Term and Qualifications. The affairs of the Association shall be initially governed by a Board of three directors. Until the Transition Date, the Declarant shall elect the members of the Board pursuant to Article 14 of the Declaration, subject to the right of the Owners to elect a member or members, as provided in Section 14.1 of the Declaration. Members of the Board elected by the Declarant need not be Owners. Within 30 days after the Transition Date, the Declarant or the Board shall call a special meeting of the Owners to elect a Board of five directors to serve until the first day of the calendar month following the date of adjournment of the first annual meeting. Thereafter, the term of office for directors will begin on the first day of the calendar month following the date of adjournment of the annual meeting at which they are elected. The normal term of office for directors will be for three years and until their successors are elected and take office. However, to provide for staggered terms, at the first

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annual meeting one-third of the number of directors (or the whole number nearest to one-third) shall be elected for one year, the same number shall be elected for two years, and the remainder shall be elected for three years. A majority of the directors elected by the Owners after the Transition Date shall be members of the Association. If a corporation is a member of the Association, any one of its officers, directors, or shareholders may be elected to the Board; if a partnership is a member, any one partner of such partnership may be elected to the Board.

Section 3.2 Powers and Duties. The Board shall have the powers and duties provided for the administering authority of the condominium in the Condominium Act and in the Declaration, and all other power necessary for the administration of the affairs of the Association, and may do all such acts and things as are not prohibited by statute or by the Declaration required to be done in another manner.

Section 3.3 Vacancies. Vacancies on the Board caused by reasons other than the removal of a director by a vote of the Association shall be filled by vote of the majority of the remaining directors, even though they may constitute less than a quorum. Each person so selected shall be a director until a successor is elected at the next annual meeting of the Association to serve the balance of the unexpired term.

Section 3 A Removal of Directors. At any regular or special meeting after the Transition Date, any one or more of the directors may be removed, with or without cause, by members holding a majority of the votes in the Association and a successor may -then and there be elected to fill the vacancy thus created and to serve the balance of the unexpired term. Any director whose removal has been proposed shall be given an opportunity to be heard at the meeting.

Section 3.5 services as directors.

Compensation. No compensation shall be paid to directors for their

Section 3. 6 Organization Meeting. The first meeting of the newly elected Board shall be held within ten days of election at a place to be fixed by the directors at the meeting at which the directors were elected, and no notice shall be necessary to the newly elected directors in order legally to call the meeting, providing a majority of the whole Board shall be present at the

·meeting.

Section 3.7 Regular Meetings. Regular meetings of the Board may be held at such time and place as shall be determined from time to time by a majority of the directors, but at least two such meetings shall be held during each fiscal year. Notice of regular meetings of the Board shall be given to each director personally or by mail, telephone, or telegraph, at least three days before the day fixed for the meeting.

Section 3.8 Special Meetings. Special meetings of the Board may be called by the president on three days' notice to each director, given personally or by mail, telephone, or telegraph, which notice shall state the time, place, and purpose of the meeting. Special meetings of the Board shall be called by either the president or secretary in like manner and on like notice on the written request of any two directors.

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Section 3.9 Waiver of Notice. Before any meeting of the Board, any director may, in writing, waive notice of such meeting. Attendance by a director at any meeting of the Board shall be a waiver by him of timely and adequate notice unless he expressly challenges the notice when the meeting begins. lf all directors are present at any meeting of the Board, no notice shall be required and any business may be transacted at the meeting.

Section 3. J 0 Quorum. At all meetings of the Board, a majority of the directors shall constitute a quorum for the transaction of business, and the acts of the majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board. If there is less than a quorum present at any meeting of the Board, the majority of those present may adjourn the meeting from time to time. At the adjourned meeting any business which might have been transacted at the meeting as originally called may be transacted without further notice.

Section 3.11 Open Meeting. Any Owner or voting representative may attend any meeting of the Board, but shall not be entitled to participate except with the consent of the Board. The Board may, however, go into private, executive session to consider the employment or dismissal of the managing agent or other persons employed by the Association, or to hear complaints or charges brought against such person, unless the person requests a public hearing, or to discuss with legal counsel litigation in which the Association is or is likely to become a party if public discussion would adversely affect the interests of the Association in such litigation.

ARTICLE 4. OFFICERS.

Section 4.1 Designation. The principal officers of the Association shall be a president, a vice president, a secretary, and a treasurer, all of whom shall be elected by and from the Board. The directors may appoint from the Board such other officers as in their judgment may be necessary or desirable. Two or more offices may be held by the same person, except that a person may not hold the offices of president and secretary simultaneously.

Section 4.2 Election of Officers. The officers of the Association shall be elected annually by the Board at the flfSt Board meeting after the annual meeting of the Association. They shall hold offlce at the pleasure of the Board.

Section 4.3 Removal of Officers. · At any regular meeting of the Board or at any special meeting of the Board called for such purpose, upon an affirmative vote of a majority of the members of the Board, any officer may be removed, either with or without cause. A successor to the removed officer may be elected at any such meeting.

Section 4.4 President. The president shall be the chief executive offlcer of the Association. He shall preside at all meetings of the Association and of the Board and shall have all powers and duties usually vested in the offlce of the President.

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Section 4.5 Vice President. The vice president shall perform the duties of the president when the president is absent or unable to act, and shall perform such other duties as may be prescribed by the Board.

Section 4.6 Secretary. The secretary shall keep the minutes of all meetings of the Board and of the Association and shall have custody of the business records of the Board and the Association, other than financial records kept by the treasurer. He shall also perform such other duties as may be prescribed by the Board.

Section 4. 7 Treasurer. The treasurer shall have responsibility for Association funds and securities and shall be responsible for keeping full and accurate accounts of all receipts and disbursements in books belonging to the Association.

Section 4.8 Other Officers and Employees. Other officers of the Association and any persons employed to assist the officers, shall have such authority and shall perform such duties as the Board may prescribe within the provisions of the applicable statutes, the Declaration, and these Bylaws.

Section 4.9 Compensation. The Board may pay reasonable compensation to any officer or Owner who performs substantial services for the condominium in carrying out the management duties of the Board. The Board's decision to compensate an officer shall not become final until 60 days after notice of it (including the amount of compensation to be paid) has been given to all persons entitled to notice of meetings of the Association, and such decision may be reversed by the members of the Association at a meeting duly called and held within 60 days after the notice of the decision was given.

ARTICLE 5. COMMITTEES

Section 5 .I Committees of Directors. The Board may appoint one or more committees that consist of one or more directors. Such committees, if composed entirely of Board members, shall have and exercise, to the extent provided in the resolution establishing the committee, the authority of the Board in the management of the Association. The appointment of any such committee shall not relieve the Board of its ultimate responsibility for the administration and management of the condominium.

Section 5.2 Other Committees. Other committees, not having or exerc1smg the authority of the Board in the management of the Association, may be appointed by the president or the directors, and such committees may be composed of one or more members of the Association.

ARTICLE 6. HANDLING OF FUNDS.

Section 6.1 Accounts. The Association shall establish the necessary funds or accounts to provide properly for the operation and maintenance of the condominium. Overall

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superintendence of these funds shall be the responsibility of the treasurer of the Association. There shall be at least three separate funds as described in Sections 6.2, 6.3, and 6.4.

Section 6.2 Working Capital Fund. There shall be established a checking account in a commercial bank to be known as the "Working Capital Fund." This fund will be used for the normal operation of the condominium and will receive all monthly Assessments, first purchasers' initial contributions to the fund, and other monies received by the Association. Checks shall be issued from this account for all management and operation expenditures necessary for the condominium and maintenance expenses of a routine or minor nature that do not require resort to the Reserve Fund for Common Elements. Funds for the Reserve Fund for Insurance Premiums and the Reserve Fund for Common Elements will normally be deposited in the Working Capital Fund and checks immediately issued to the other fund so an overall account of the funds received and disbursed by the Association is centralized in the check register of the Working Capital Fund account.

Section 6.3 Reserve Fund for Insurance Premiums. The Association shall maintain a fund which shall be known as the "Reserve Fund for Insurance Premiums." Each month the treasurer shall cause to be deposited into this fund an amount equal to at least one-twelfth of the total cost of all premiums for the policy or policies and bonds the Association is required by the Declaration to purchase. Such premiums shall be paid out of this fund.

Section 6.4 Reserve Fund for Common Elements. The Association shall maintain a · ' fund which shall be known as the "Reserve Fund for Common Elements." The Treasurer shall

deposit to this reserve account amounts reasonably anticipated to be required for the periodic maintenance, repair, and replacement of the Common Elements.

Section 6.5 Combination and Deposit or Investment of Funds. All funds of the Association shall be kept in accounts or deposits that are insured by agencies of the United States. The funds of the Association shall not be commingled with the funds of any other association or with the funds of any manager of the Association. The reserve funds may be combined in one or more savings accounts, certificates of deposit, or other accounts or deposits. Withdrawals of reserve funds from such account shall require the signature of at least two persons who are officers or directors of the Association.

ARTICLE 7. KEEPING RECORDS AND REPORTS.

The Board shall cause to be kept complete, detailed, and accurate books and records of the receipts and expenditures of the Association, in a form that complies with generally accepted accounting principles. The books and records, authorizations for payment of expenditures, and all contracts, documents, papers, and other records of the Association shall be available for examination by the Owners, Mortgagees, and the agents or attorneys of either of them, during normal business hours and at any other reasonable time or times.

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ARTICLE 8. AMENDMENTS.

The procedure and necessary consents required for adoption of amendments to the Bylaws are set forth in Article 26 of the Declaration.

The foregoing Bylaws were adopted organizational meeting of the Association.

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1998, at the

Condominium Declaration


I, RALPH MUNRO, Secretary of Stnte of the Stnte of Washington and custodian of its seal, hereby issue this

CERTIFICA TE OF INCORPORATION

THE VILLAS AT HARBOUR POINTE OWNERS ASSOCIATION

a Washington Non Profit corporation. Articles of Incorporation were filed for record in this office on the date indicated below.

UBI Number: 601 889 409 Date: July 16, 1998

Given under my handand the Seal ofthe State of Washington at Olympia, the State Capital

R m k l p h Munm, Ssrrctary *3%6917-3

. . . ARTICLES OF 1NCORPORATION : !* ....

. , . , . . . ' i s

THE VILLAS AT HARBOUR POINTE . .; . . . . .,.., -i.: ,'. .: .., OWNERS ASSOCIATION

The undersigned, acting as inco~porator of a corporation under the Washington Nonprofit Corporation Act (Ch. 24.03 RCW), adopts the following Articles of Incolporation for the colpolation.

ARTICLE 1. Name

The name of this corporation is The Villas at Harbour Pointe Owners Association.

ARTICLE 2. Duration

The duration of this colporation is perpetual.

ARTICLE 3. Purposes

This corporation is organized to provide an entity pursuant to the Washington Condominium Act (Ch. 64.34 RCW), hereinafter called the "Condominium Act," for the operation of The Villas at Harbour Pointe, a condominium located in Mukilteo, Washington, and to engage in all such activities as are incidental or conducive to the attainment of the objectives of the colporation and all activitieswhich are pelmined to be done by a nonprofit colporation under any laws that may now or hereafter be applicable or available to this corporation. The powers of this co~poration shall be subject to and shall be exercised in accordance with the Condominium Act and the provisions of the Condominium Declaration for The Villas at Harbour Pointe, a condominium, as it may from time to time be amended. hereinafter refmed to as the "Declaration."

ARTlCLE 4. Dissolution

Upon dissolution or final liquidation of the colporation, the assets of the corporation shall be distributed among the memben of the corporation in accordance with the Condominium Act and the Declaration.

ARTICLE 5. Memben

The colporation shall have one class of members. which shall consist of the owners of the units at The Villas at Harbour Pointe, a condominium. The lights, privileges and obligations of the memben are set forth in the Condominium Act, the Declaration and the Bylaws of the corporation.

ARTICLE 6. Registered Office and Agent

The name of the initial registered agent of the corporation is FPS Corporate Services. Inc. The address of the initial registered office of the corporation is 11 I I Third Avenue, Suite 3400, Seattle, Washington 98 101-3299.

ARTICLE 7.

The number of directors of this corporation shall be fixed by the Bylaws and may be increased or decreased from time to.time in the manner specified therein. The initial Board of Directors shall consist of three directors. The names and addresses of the persons who shall serve as direct013 until the first meeting of the members and until their successors are elected and qualify unless they resign or are removed are Scott Hanson and Jeff Hanson, whose address is 2701 First Avenue, Suite 350, Seattle, Washington 98121-1 123; and Steve Hager, whose address is 4702 Harbour Pointe Boulevard, Mukilteo, Washington 98271.

ARTICLE 8. Limitation of Liability

A director of the corporation shall not be personally liable to the corporation or its membel~ for monetay damages for conduct as a director, except for liability of the director (i) for acts or omissions which involve intentional misconduct by the director or a knowing violation of law by the director, (ii) for any transaction from which the director will personally izceive a benefit in money, propaty or sewices to which the director is not legdy entitled, or (iii) for conduct violating Section 23B.08.310 of the Washington Business Corporation Act.

Any repeal or modification of this Adcle by the directors or members of the colporation shall not advesely affect any right or protection of any individual who is or was a director of the co~poration which existed at the time of such repeal or modification.

ARTICLE 9. Indemnification

The corporation shall indemnify any individual made a party to a proceeding because that individual is or was a director of the co~poration and shall advance or reimbu~se the reasonable expenses incul~ed by such individual in advance of final disposition of the proceeding, without regard to the limitations in RCW 23B.08.510 through 23B.08.550 of the Washington Business Corporation Act, or any other limitation which may hereafter be enacted to the extent such limitation may be disregarded if authorized by the Articles of Incorporation, to the full extent and under all circumstances permitted by applicable law.

Any indemnification provided under this Article shall, unless limited by the terms of the unde~raking to indemnify, continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of his or her heirs, executols and administrato~s.

Any repeal or modification of this Article by the directors or members of the corporation shall not adversely affect any right or protection of any individual who is or was a director or officer of the corporation existing at the time of such repeal or modification.

ARTICLE 10. Amendment

Any amendment to these Articles of Incorporation shall require the approval of not less than sixty-seven parent (67%) of the votes of the members of the corporation and such other approvals as may be required in Article 26 of the Declaration.

ARTICLE I I. Incorporator

The name of the incorporator is Gary N. Ackerman. His address is 11 11 Tl~ird Avenue, Suite 3400, Seattle, Washington 98101 -3299.

Executed on July IS, 1996.

CONSENT TO SERVE AS REGISTERED AGENT

FPS Corporate Services, Inc. ("FPS"), hereby consents to serve as Registered Agent in the

State of Wahington for The Villas at Harbour Pointe Owners Association. FPS understands that as

agent for the corporation, it will be its responsibilitv to receive service of process in the name of the

colporation; to forward all mail to the corporation; and to immediately notify the ofice of the

Secretay of State in the event of its resignation, or of any changes in the registered office address of

the co~poration for which it is agent

FPS CORPORATE SERVICES, INC.

July 15. 1998 (date) Sheni L. Reed, Vice President

NAME OF REGISTERED AGENT: FPS Coiporate Services, Inc.

ADDRESS OF REGISTERED AGENT: I I l l Third Avenue, Suite 3400 Seattle, Washington 98 101-3299

EXHIBIT 2

BYLAWS

BYLAWS OF

THE VnLAS AT HARBOUR POINTE

OWNERS ASSOCIATION

The following are Bylaws of The Villas at Harbour Pointe Owners Association, a corporation organized under the Washington Nonprofit Corporation Act (RCW 24.03, the "Nonprofit Corporation Act"). These Bylaws provide for operation of The Villas at Harbour Pointe, a condominium (the "Condominium") located in Mukilteo, Washingtoq created pursuant to the Washingon Condominium Act (RCW 64.34, the "Condominium Act"). They apply to the entire condominium, each Unit therein, and dl common elements. Each Owner automatically, by virtue of such ownership, becomes a member of the Association. A11 present and hture Owners, Mortgagees and other encumbrances, lessees, tenants, licensees, and occupants of Units, and their guests and employees, and any other person who may use the facilities of the condominium are subject to these Bylaws, the Condominium Declaration for The Villas at Harbour Pointe, a condominium, as it may from time to time be amended (the "Declaration") and the rules and replations pertaining to use and operation of the condominium.

Words and phrases that are defined in the Declaration shall have the same meaning in these Bylaws.

ARTICLE 1 . MEMBERSKIP: VOTNG: REGISTER.

Section I . 1 vembershio. The Owners of Units in the condominium shall constitute the Owners Association. Corporations, partnerships, associations, and other legal entities. trustees under an express trust, and other fiduciaries, as well as natural persons may be members of the Association. Ownersof a Unit as joint tenants, tenants in common, community property, or other ownership involving more than one Owner, shall be joint members of the Association. but the sum total of their vote shall not exceed the voting power allocated to the Units owned.

Section 1.2 Number of Votes. The total voting power equals the number of Units in the condominium and the total number of votes available to the Owner or Owners of each Unit shall be equal to one vote for each Unit owned.

Section 1.3 Votinq bv Multiole Owners. If only one of the multiple Owners of a Unit 1s present at a meeting of the Association, the Owner is entitled to cast all the votes allocated to that Unit. If more than one of the multiple Owners are present, the votes allocated to that Unit may be cast only in accordance with the agreement of a majority in interest of the multiple Owners. There is majority agreement if any one of the multiple Owners casts the votes allocated to that Unit without protest being made promptly to the person presiding over the meeting by any of the other Owners of the Unit.

Section 1.4 Votint Representativq. An Owner may, by written notice to the Board, designate a voting representative for the Unit. The voting representative need not be an Owner. The designation may be revoked at any time by written notice to the Board from a person having an ownership interest in a Unit, or by actual notice to the Board of the death or judicially declared incompetence of any person with an ownership interest in the Unit, except in cases in which the person designated is a Mortgagee of the Unit. This power of designation and revocation may be exercised by the guardian of an Owner, the attorney-in- fact of the Owner under a durable power of attorney, or the administrators or executors of an Owner's estate. If no designation has been made, or if a designation has been revoked and no new designation has been made, the voting representative of each Unit shall be the group composed of all of its Owners. If a Unit is owned by husband and wife and only one of them is at a meeting, the one who is present will represent the marital community.

Section 1.5 Votine by Proxy: Pledeed Votes to Morteacee. Votes allocated to a Unit may be cast pursuant to a proxy duly executed by an Owner. If a Unit is owned by more than one person, each Owner of a Unit may vote or register protest to the casting of votes by the other Owners of the Unit through a duly executed proxy. A Unit Owner may not revoke a proxy given pursuant to this Section except by actual notice of revocation to the person presiding over a meeting of the Association. A proxy is void if it is not dated or purports to be revocable without notice. Unless stated othenvise in the proxy a proxy terminates 11 months after its date of issuance. An Owner may, but shall not be obligated to, pledge his or her vote on all issues or on specific issues to a Mortgagee. If an Owner is in default under a first Mortgage on the Unit for one year or more, the Mortgagee shall automatically be authorized to declare at any time thereafter that the Owner has pledged his or her vote on all issues to the Mortgagee during the continuance of the default. If the Board has been notified of any such pledge to a Mortgagee, only the vote of the Mortgagee will be recognized on the issues that are subject to the pledge.

Section 1.6 persons Under Disability. Minors and persons declared legally incompetent shall be eligible for membership in the Association. if otherwise qualified, but shall not be permitted to vote except through a legally appointed, qualified, and acting guardian of their estate voting on their behalf, or, in the case of a minor with no legal guardian of his estate, through a parent having custody of the minor.

Section 1.7 Reeister of member^. The Board shall cause a register to be kept containing the names and addresses of all members of the Association. Persons who purchase an interest in a Unit shall promptly inform the Board of their interest. Persons who claim to be members of the Association shall, upon request, furnish the Board with copies of any documents under which they assert ownership of a Unit or any interest therein, and any Mortgages thereon.

ARTICLE 2. MEETINGS OF MEMBERS,

Section 2.1 Place. Meetings of the members of the Association shall be held at such suitable place as may be convenient to the membership and designated from time to time by the Board.

Section 2.2 Annual Meetine. The annual meeting of the Association shall be held in the first quarter of each fiscal year on a date fixed by the Board, which date shall not be less than 10 nor more than 60 days after notice of the meeting is given to the members. At such annual meeting the Owners shall elect members to the Board or fill vacancies therein, and transact such other business as shall properly come before the meeting.

Section 2.3 Budcet meet in^. Within 30 days after adoption of any proposed budget for the Association, the Board shall provide a summary of the budget to all o f the members and set a date for a meeting of the members to consider ratification of the budget, which date shall be not less than 14 nor more than 60 days after mailing the summary. Unless at the meeting members holding a majority of the votes in the Association vote to reject the budget. the budget is ratified, whether or not a quorum is present for the meeting. In the event the proposed budget is rejected or the required notice for the meeting is not given, the budget last ratified by the Owners shall be continued until a budget proposed by the Board is ratified.

Section 2.4 S m s . A special meeting of the Association may be called by the president, by resolution of the Board or upon the written request of a majority of the Board or upon the written request of any Owner on not less than 10 nor more than 60 days in advance of the meeting. No business shall be transacted at a special meeting except as stated in the notice given therefor unless consented to by each of the Owners present either in person or by proxy.

Section 2.5 Notice of Meetines. It shall be the duty of the secretary to give notice of each annual, budget and special meeting such notice shall be hand-delivered.or sent prepaid by first-class United States mail to the mailing address of each Unit or to any other mailing address designated in writing by the Unit Owner, to each member of the Association and to each Eligible Mortgagee, if required by Article 28 of the Declaration. The notice of any meeting shall state the time and place of the meeting and the items on the agenda to be voted on by the members, including the general nature of any proposed amendment to the Declaration or Bylaws, changes in the previously approved budget that result in a change in Assessment obligations, and any proposal to remove a director or officer. Before any meeting of the Association, any member may, in writing, waive notice of such meeting. Attendance by a member at a meeting of the Association shall be a waiver by him o f timely and adequate notice unless he expressly challenges the notice when the meeting begins.

Section2.6 Quorum. The presence in person or by proxy of members of the Association or voting representatives holding 25% of the total voting power shall constitute a quorum for the transaction of business at any meeting of members of the Association.

Section 2.7 Adiournment of Meeting. If any meeting of Owners cannot be organized because a quorum has not attended, the Owners present. in person or by proxy, may adjourn the meeting to a time not less than 48 hours from the time the original meeting was called.

Section 2.8 Maioritv Vote. Except as otherwise provided by the Condominium Act by the Declaration, or by these Bylaws, passase of any matter submitted to vote at a meeting where a quorum is present, shall require the affirmative vote of at least 51% of the votes present.

Section 2.9 Voting bv Mail The Board may decide that voting of the members shall be by mail with respect to any particular election of the Board or with respect to adoption of any proposed amendment to the Declaration or Bylaws, or with respect to any other matter for which approval by Owners is required by the Declaration or Bylaws, in accordance with the following procedure:

(a) In case of election of directors by mail, the existing directors shall advise the Secretary in writing of the names of nominees for all directors to be elected and of a date not less than 50 days after such advice is given by which all votes are to be received. The Secretary, within five days after such advice is given, shall give written notice to all Owners of the number of directors to be elected and of the names of the nominees. The notice shall state that any such Owner may nominate an additional candidate or candidates, not to exceed. the number of directors to be elected, by notice in writing to the Secretary at the address specified in the notice, to be received on or before a specified date not less than 15 days from the date the notice is given by the Secretary. Within five days after the specified date, the Secretary shall give written notice andlor ballot to all Owners stating the number of directors to be elected, the names of all persons nominated by the Board, the names of persons nominated by members and the date by which votes of the Owners must be received by the Secretary at the address specified in the notice. Votes received after that date will not be effective. All persons elected as directors pursuant to an election by mail shall take of ice effective on the date specified in the notice for the receipt of votes.

(b) In the case of a vote by mail relating to any other matter, the Secretary shall give written notice andlor ballot to all Owners, which shall include a proposed written resolution setting forth a description of the proposed action and shall state that the Owners are entitled to vote by mail for or against the proposal by delivering the vote on or before a specified date not less than 20 days after the notice to the address specified in the notice. Votes received after that date shall not be effective. Any such proposal shall be adopted if approved by the affirmative vote of not less than a majority of the votes entitled to be cast on such question, unless a greater or lesser voting requirement is established by the Declaration or Bylaws for the matter in question.

(c) Delivery of a vote in writing to the specified address shall be equivalent to receipt of a vote by mail at such address for the purpose of this Section 2.3.4.

Section2.10 Written Ballot. At the discretion of the Board, any matter which might come before the Association at a meeting, including election of directors, may be determined by written ballot, rather than at a meeting. Ballots shall be sent to all Unit Owners in the same manner as notice of meetings, with a specified deadline for return of ballots. Ballots for such meetings must be properly executed and returned in sufficient quantity to constitute a quorum, and determination of the maner presented shall be based upon the required percentage of ballots returned, unless approval of a specified percentage of all voting power is required by law, the Declaration or these Bylaws. The vote by ballot shall be determined by the Board within 48 hours of the deadline for return of ballots. Within 10 days after the ballots have been counted,

each Unit Owner shall be notified by mail or other delivery ofwritten notice of the results of the ballot or that a quorum of ballots was not returned.

Section 2.11 Order of Business. The order of business at meetings of the Association shall be as follows unless dispensed with on motion:

(a) Roll call;

(b) Proof of notice of meeting or waiver of notice;

(c) Minutes of preceding meeting;

(d) Reports of officers;

(e) Reports of committees;

(0 Election of inspectors of election;

(g) Election of directors (annual meeting or special meeting called for such purpose);

(h) Unfinished business;

(i) New business;

6 ) Adjournment

Section 2.12 Parliamentarv Authority. In the event of dispute, the parliamentary authority for the meetings shall be the most current available edition of Robert's Rules of Order or such other published code of parliamentary procedure as shall be approved by a majority at the meeting.

ARTICLE 3. BOARD OF DIRECTORS.

Section 3. I Number. Term and Oualifications. The affairs of the Association shall be initially governed by a Board of three directors. Until the Transition Date, the Declarant shall elect the members of the Board pursuant to Article 14 of the Declaration, subject to the right of the owners to elect a member or members, as provided in Section 14.1 of the Declaration. Members of the Board elected by the Declarant need not be Owners. Within 30 days after the Transition Date, the Declarant or the Board shall call a special meeting of the Owners to elect a Board of five directors to serve until the first day of the calendar month following the date of adjournment of the first annual meeting. Thereafter, the term of of ice for directors will begin on the first day of the calendar month following the date of adjournment of the annual meeting at which they are elected. The normal term of of ice for directors will be for three years and until their successors are elected and take office. However, to provide for staggered terms, at the first

annual meeting one-third of the number of directors (or the whole number nearest to one-third) shall be elected for one year, the same number shall be elected for two years, and the remainder shall be elected for three years. A majority o f the directors elected by the Owners after the Transition Date shall be members of the Association. If a corporation is a member of the Association, any one of its officers, directors, or shareholders may be elected to the Board; if a partnership is a member, any one partner of such partnership may be elected to the Board.

Section 3.2 Powers and Duties. The Board shall have the powers and duties provided for the administering authority of the condominium in the Condominium Act and in the Declaration, and all other power necessary for the administration of the affairs of the Association, and may do all such acts and things as are not prohibited by statute or by the Declaration required to be done in another manner.

Section 3.3 Vacancie~. Vacancies on the Board caused by reasons other than the removal of a director by a vote of the Association shall be filled by vote of the majority of the remaining directors, even though they may constitute less than a quorum. Each person so selected shall be a director until a successor is elected at the next annual meeting of the Association to serve the balance of the unexpired term.

Section3.4 Removal of Director?. At any regular or special meeting after the Transition Date, any one or more of the directors may be removed, with or without cause, by members holding a majority of the votes in the Association and a successor may then and there be elected to fill the vacancy thus created and to serve the balance of the unexpired term. Any director whose removal has been proposed shall be given an opportunity to be heard at the meeting.

Section 3.5 urnpensation. No compensation shall be paid to directors for their services as directors.

Section 3.6 Qreanization Meeting. The first meeting of the newly elected Board shall be held within ten days of election at a place to be fixed by the directors at the meeting at which the directors were elected, and no notice shall be necessary to the newly elected directors in order legally to call the meeting, providing a majority of the whole Board shall be present at the

.meeting.

Section 3.7 p e a l a r Meetines. Regular meetings of the Board may be held at such time and place as shall be determined from time to time by a majority of the directors, but at least two such meetings shall be held during each fiscal year. Notice of regular meetings of the Board shall be given to each director personally or by mail, telephone, or telegraph, at least three days before the day fixed for the meeting.

Section 3.8 Special meet in^. Special meetings of the Board may be called by the president on three days' notice to each director, given personally or by mail, telephone, or telegraph, which notice shall state the time, place, and purpose of the meeting. Special meetings of the Board shall be called by either the president or secretary in like manner and on like notice on the written request of any two directors.

Section 3.9 Waiver of Notice. Before any meeting of the Board, any director may, in writing. waive nolice of such meeting. Attendance by a director at any meeting of the Board shall be a waiver by him of timely and adequate notice unless he expressly challenges the notice when the meeting begins. If all directors are present at any meeting of the Board, no notice shall be required and any business niay be transacted at the meeting.

Section 3.10 Ouoruq. At all meetings of the Board, a majority of the directors shall constitute a quorum for the transaction of business, and the acts of the majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board. If there is less than a quorum present at any meeting of the Board, the majority of those present may adjourn the meeting from time to time. At the adjourned meeting any business which might have been transacted at the meeting as originally called may be transacted without hrther notice.

Section 3.1 1 O ~ e n Meeting. Any Owner or voting representative may attend any meeting of the Board, but shall not be entitled to participate except with the consent of the Board. The Board may, however, go into private, executive session to consider the employment or dismissal of the manasing agent or other persons employed by the Association, or to hear complaints or charges brought against such person, unless the person requests a public hearing, or to discuss with legal counsel litigation in which the Association is or is likely to become a party if public discussion would adversely affect the interests of the Association in such litigation.

ARTICLE 4. OFFICERS.

Section 4.1 Desivnatjon. The principal officers of the Association shall be a president, a vice president, a secretary, and a treasurer, all ofwhom shall be elected by and from the Board. The directors may appoint from the Board such other officers as in their judgment may be necessary or desirable. Two or more offices may be held by the same person, except that a person may not hold the offices of president and secretary simultaneously.

Section 4.2 Election of Officerj. The officers of the Association shall be elected annually by the Board at the first Board meeting after the annual meeting of the Association. They shall hold office at the pleasure of the Board.

Section4.3 Removal o f Officers. At any regular meeting of the Board or at any speck1 meeting of the Board called for such purpose, upon an affirmative vote of a majority of the members of the Board, any officer may be removed, either with or without cause. A successor to the removed officer may be elected at any such meeting.

Section 4.4 President. The president shall be the chief executive officer of the J-ssociation. He shall preside at all meetings of the Association and of the Board and shall have all powers and duties usually vested in the office of the President.

Section 4.5 Vice President. The vice president shall perform the duties of the president when the president is absent or unable to act, and shall perform such other duties as may be prescribed by the Board.

Section 4.6 Secretaz. The secretary shall keep the minutes of all meetings of the Board and of the Association and shall have custody of the business records of the Board and the Association, other than financial records kept by the treasurer. He shall also perform such other duties as may be prescribed by the Board.

Section 4.7 Treasurer. The treasurer shall have responsibility for Association funds and securities and shall be responsible for keeping full and accurate accounts of all receipts and disbursements in books belonging to the Association.

Section 4.8 Other Officers and Emulouees. Other officers of the Association and any persons employed to assist the officers, shall have such authority and shall perform such duties as the Board may prescribe within the provisions of the applicable statutes, the Declaration, and these Bylaws.

Section 4.9 Comoensation. The Board may pay reasonable compensation to any officer or Owner who performs substantial services for the condominium in carrying out the management duties of the Board. The Board's decision to compensate an officer shall not become final until 60 days after notice of it (including the amount of compensation to be paid) has been given to all persons entitled to notice of meetings of the Association. and such decision may be reversed by the members of the Association at a meeting duly called and held within 60 days after the notice of the decision was given.

ARTICLE 5 . COMMITTEES.

Section 5.1 Committees of director^. The Board may appoint one or more committees that consist of one or more directors. Such committees, if composed entirely of Board members, shall have and exercise, to the extent provided in the resolution establishing the committee, the authority of the Board in the management of the Association. The appointment of any such committee shall not relieve the Board of its ultimate responsibility for the administration and management of the condominium.

Section 5.2 Other Committees. Other committees, not having or exercising the authority of the Board in the management of the Association, may be appointed by the president or the directors, and such committees may be composed of one or more members of the Association.

.ARTICLE 6. HANDLING OF FUNDS.

Section 6.1 Accounts. The Association shall establish the necessary funds or accounts to provide properly for the operation and maintenance of the condominium. Overall

superintendence of these funds shall be the responsibility of the treasurer of the Association. There shall be at least three separate funds as described in Sections 6.2.6.3, and 6.4.

Section 6.2 Workine Caoital Fund. There shall be established a checking account in a commercial bank to be known as the "Working Capital Fund." This fund will be used for the normal operation of the condominium and will receive all monthly Assessments, first purchasers' initial contributions to the fund, and other monies received by the Association Checks shall be issued from this account for all management and operation expenditures necessary for the condominium and maintenance expenses of a routine or minor nature that do not require resort to the Reserve Fund for Common Elements. Funds for the Reserve Fund for lnsurance Premiums and the Reserve Fund for Common Elements will normally be deposited in the Working Capital Fund and checks immediately issued to the other fund so an overall account of the h n d s received and disbursed by the Association is centralized in the check register of the Working Capital Fund account.

Section 6.3 Reserve Fund for lnsurance Premiums. The Association shall maintain a fund which shall be known as the "Reserve Fund for Insurance Premiums." Each month the treasurer shall cause to be deposited into this fund an amount equal to at least one-twelfth of the total cost of all premiums for the policy or policies and bonds the Association is required by the Declaration to purchase. Such premiums shall be paid out of this fund.

Section 6.4 Reserve Fund for Common Elements. The Association shall maintain a fund which shall be known as the "Reserve Fund for Common Elements." The Treasurer shall deposit to this reserve account amounts reasonably anticipated to be required for the periodic maintenance, repair, and replacement of the Common Elements.

Section 6.5 Combination and Deoosit or Investment of Funds. All funds of the Association shaIl be kept in accounts or deposits that are insured by agencies of the United States. The funds of the Association shall not be commingled with the h n d s o f any other association or with the h n d s of any manager of the Association. The reserve funds may be combined in one or more savings accounts, certificates of deposit, or other accounts or deposits. Withdrawals of reserve funds from such account shall require the signature of at least two persons who are oficers or directors of the Association.

ART.ICLE 7. C E P I N G RECORDS AND REPORTS.

The Board shall cause to be kept complete, detailed, and accurate books and records of thk receipts and expenditures of the Association, in a form that complies with generally accepted accounting principles. The books and records, authorizations for payment of expenditures, and all contracts, documents, papers, and other records of the Association shall be available for examination by the Owners, Mortgagees, and the agents or attorneys of either of them, during normal business hours and at any other reasonable time or times.

ARTICLE 8. AMENDMENTS.

The procedure and necessary consents required for adoption of amendments to the Bylaws are set forth in Article 26 of the Declaration.

The foregoing Bylaws were adopted on , ,998, at thp organizational meeting of the Association. .- ..-.

/- i t , '

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Foster Peppsr & Shefelman PLLC q007140533 Attenlion: Gary N. Ackerman 071 14/98 1 s : ~ ~

P.0058 Recorded 1 l l l Third Avenue, Suile 3400 Snohoalrh County Seattle. Washington 98101-3299

CONDOMINIUM DECLARATION FOR THE VII.LAS AT HARBOUR POTNTE A CONDOMINIUM

GrantorDeclarant: POSSESSION VIEW, L.L.C., a Washington limited liability wmpany Additional names on pg. =A

Grantee: THE VILLAS AT HARBOUR POINTE, A COM)OMDJWM Additional names on pg.

Abbreviatcd Legal Description: THAT PORTION OF TRACT C, SARATOGA REACH D M S I O N 2,

ACCORDING TO THE PLAT THEREOF, RECORDED VOLUME 48 OF PLATS, PAGE 80, RECORDS OF SNOHOMISH COUNTY, WASHINGTON Off~cial legal description on Schedule A

Assessor's Tax Parcel ID# - WO - 101 - 0008: 7617 . - - 000 100 0009: 7617 - 000 - 10&0504. 202804-4-003-0009: X424-000-500dM)6

Reference # (if applicable): K A Additional numbers on p g N/A

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C0M)OMINIUM

DECLARATION

FOR

nIz vnLAs AT HARBOUR POINTE

A CONDO^

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TABLE OF CONTENTS E a s

............................................................................................ . ARTICLE 1 DEFINITIONS 1 ....................................................................................... . Section I 1 Words Defined 1

Section 1.2 Form of Words 4 ...................................................................................... . . Senion 1.3 Statutory Definltlons .............................................................................. 4

ARTICLE 2 . CONSTRUCTION AND VALlUlTY OF DECLARATION ......... .................................................................... . ARTICLE 3 NAME OF CONDOMINIUM 5

....................... . ARTICLE 4 DESCRIPTION OF LAND; DEVELOPMENT IN PHASES 5 ............................................................................... Section 4.1 Descriptioa of Land 5

.......................................................................... Section 4.2 Development in Phases 5 ................................. Section 4.3 Improvements in Subsequent Phascs or Subphases 6 ...................................................................................................... Section 4.4 Liens 6 .................................................................... Section 4.5 Election to Withdraw Land 6

......................................................... Section 4.6 Expiration ofDevelopment Rights 7

.............................................................. . ARTICLE 5 DESCRIPTION OF BUII.DlNGS. 7

.......................... . ART1CI.E 6 DESCRIPTION OF UNITS; ALLOCATED INTERESTS 7 ........................................................ Section 6.1 Number and Identification of Units 7 ..................................................................................... Section 6.2 Unit Boundaries 8

............................................................................................... Section 6.3 Unit Data 8 Section 6.4 Allocated Interests ................................................................................. 8

ARTICLE 7 . COMMON ELEMENTS ............................................................................. 9 ............................................................................................ Section 7.1 Description 9

Section 7.2 Use ........................................................................................................ 9 .............................. Section 7.3 Conveyance or Encumbrance of Common Elements 9

............................................................ . ARTICLE 8 LIMITED COMMONELEMENTS 9 ............................................................................................ Section 8.1 Description 9 .......................................................................................... Section 8.2 Reallocation 10

Section 8.3 Use ....................................................................................................... 10

. . ARTICLE 9 PARKING ........................................................................................... I I .... . ARTICLE 10 PERMITTED USES; MAINTENANCE OF ZMITS; CONVEYANCES I1 ............................................... Section 10.1 Residential Use; Timesharing Prohibited I I

................................................................................................... Section 10.2 Leases 11

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Section 10.3 Maintenance of Units, Common Elements. and Limited Common Elements ................................................................................ I I

............................................................................. Section 10.4 Exterior Appearance I2 Section 10.5 Effect on Insurance ............................................................................... 12

............. Section 10.6 Use or Alteration of Common and Limited Common Elements I2 Section 10.7 Signs ..................................................................................................... I3

....................................................................................................... S d o n 10.8 Pets 13 ................................................................................... Section 10.9 Quiet Enjoyment 13

................................................................. Section 10.10 Trash and Garbage Removal 13 . . . ............................................................... Section 10.1 I Offensive or Illegal A c t ~ v ~ t ~ e s I3 ............................................. Section 10.12 Conveyance by Owners; Notice Required 13

............... . ARTICLE 1 I DEVELOPMENT RIGHTS; SPECIAL DECLARANT RIGHTS 14 ............................................................................. Section 11.1 Development Rights I4

Section I 1 2 Spccial Declarant Rights ....................................................................... 14 Section 11.3 Transfer ............................................................................................... 14

......................................... ARTICLE 12 . ENTRY FOR REPAIRS OR MAINTENANCE 15

........................................................................ . ARTICLE 13 OWNERS ASSOCIATION IS .............................................................................. Section 13.1 Form of Association I 5

Section 13.2 Bylaws .................................................................................................. 15 .................................................................... Section 13.3 Qualification and Transfer 15 ..................................................................... Section 13.4 Powers of the Association 16

......................................................... Section 13.5 Financial Statements and Records 18 ............... Section 13.6 Inspectinn of Condominium Documents, Books and Records 18

.......................................................... ARTICLE 14 . DECLARANT CONTROL PERIOD 19 Section 14.1 Declarant Control Until Transition Date .............................................. 19 . . Section 14.2 Trnnslt~on Date ..................................................................................... 19

.......................................... Section 14.3 Declarant's Transfer of Association Control 19 ........................................................... Section 14.4 Audit of Records Upon Transfer 21

................ Section 14.5 Termination of Contracts and Leases Made By the Declarant 21

............................................................................................. . ARTICLE 15 THE BOARD 21 Section 15.1 Selection of the Doard and Officers ....................................................... 21 Section 15.2 Powers ofthe Board .............................................................................. 22

................................................................................... Srclion 15.3 Managing Agent 22 Section 15.4 Limitations on Board Authority ............................................................ 22

........................................ Scction 15.5 Right to Notice and Opportunity to Be Heard 22

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ARTICLE 1G . BUDGET AND ASSESSMENTS .............................................................. 23 Section 16.1 Fiscal Year ............................................................................................ 23 Section 16.2 Preparation of Budget ........................................................................... 23

........................................................................... Section 16.3 Ratification of Budget 23 Section 16.4 Supplemental Budget ............................................................................ 23 Section 16 5 Assessments for Common Expenses ..................................................... 23

................................................. Section 16.6 Contribution to Initial Working Capital 24 ... Section 16.7 Costs Relating to Portion of Property Subject to Development Rights 24

............................................................................... Section 16.8 Special Allocations 24 Section 16.9 Special Assessments ............................................................................. 24

....................................................... Section 16.10 Creation of Reserves; Assessments 25 ............................................................................ Section 16.1 I Notice of Asscssmem 25

Section 16.12 Paymm of Monthly Assessmenu ....................................................... 25 ............................................................ Section 1613 Proceeds Belong to Association 25

................................................................................... Section 16.14 Failure to Assess 25 Section 16.15 Certificate ofunpaid Assessments 25

............................................................... Section 16.16 Recalculation of Assessments 26

...................................... . ARTICLE 17 L E N AND COLLECTION OF ASSESSMENTS 26 .......... .............................................. Scction 17.1 Assessments Are a Licn; Priority - 26

....................................... Section 17.2 Lien May be Foreclosed; Judicial Foreclosure 26 ........................................................................ Section 17.3 Nonjudicial Foreclosure 27

................................................................. Section 17.4 Receiver During Foreclosure 27 ................................................... Section 17.5 Assessments Are Personal Obligation 27 ...................................... Section 17.6 Extinguishment of Lien and Personal Liability 27 . . . ..................................................................... Scction 17.7 Joint and Several L ~ a b ~ l ~ t y 28

......................... Section 17.8 Late Chargcs and Interest on Delinquent Assessments; 28 ................................................ Section 17.9 Recovery of Attorneys' Fees and Costs: 28

Section 17.10 Security Deposit .................................................................................. 2E ........................................................................... S c d o n 17.11 Remedies Cumulative 28

ARTICLE 18 . ENFORCEMENT OF DECLARATION, BYLAWS AND RULES AND REGULATIONS .................................................................................................................. 29

.................................................................................... Section 18.1 Rights of Actiun 29 .................. Section 18.2 Failure ofBoard to Insist on Strict Performance No Waiver 29

...................................................... . ARTICLE 19 TORT AND CONTRACT LIABILITY 29 . . ................................................................................ Section 19.1 Dcclarant Liab~llty 29

...................................... Section 19.2 Limitatiun of Liability for Utility Failure. etc 30 . . Section 19.3 No personal L i a b ~ l ~ t ~ ........................................................................... 30

. . ARTICLE 20 INDEMNIFICATION .............................................................................. 30

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............................................................................................. ARTICLE 21 . MSURANCE 30 ........................................................................... Section 21.1 General Requirements 30

................................................................................ Section 21.2 Property Insurance I ............................................... Section 21.3 Cornmcrcial Gencral Liability insurance 32

Section 21.4 Insurance Trustee; Power of Attorney ................................................... 32 ................................................................. Section 21 5 Additional Policy Provisions 32

............................................................................. Section 21.6 Fidelity Insurance 33 Section 21.7 Owners' Individual Insurance ............................................................... 34

.................................................................... Section 21.8 Use of Insurance Proceeds 34

...................... ARTICLE 22 . DAMAGE AND REPAIR OR DAMAGE TO PROPERTY 34 ................................................................... Section 22.1 Initial Board Determination 34

Section 22.2 Notice of Damage ................................................................................. 35 Section 22.3 Definitions: Damage. Substantial Damage. Repair. Emergency Work . .35 Section 22.4 Execution of Repairs ............................................................................. 36

........................................................................ Section 22.5 Damage Not Substantial 36 .............................................................................. Section 22.6 Substnntial Damage 37

........................................................... Section 22.7 Effect of Decision Not to Repair 37

.................................................................................... . ARTICLE 23 CONDEMNATION 38 .............................................. Section 23.1 Consequences of Condemnation; Notices 38

................................................................................. Section 23.2 Power of Attorney 38 ........................................................................ Section 23.3 Condemnation of a Unit 38

............................................................. Section 23.4 Condemnation of Part of a Unit 38 ....... Section 23.5 Condemnation of CommonElement or Limited Common Elcment 39

.................................................................... Scction 23.6 Rewnst~ct ion and Repair 39

............................................................................................ ARTICLE 24 . EASEMENTS 39

............................................................................................. Section 24.1 In General 39 ..................................................................................... Section 24.2 Encroachments 39

................................................... Section 24.3 Easements Reserved by the Declarant 40 .......................................... Section 24.4 Utility Easements Granted by the Declarant 40

................ . ARTICLE 25 PROCEDURES FOR SUBDIVIDING OR ALTERING UNITS 40 ............................................ Section 25.1 Submission of Proposal to Subdivide Unit 40

....................................................... Section 2 5 2 Approval Required for Subdivision 40 .................................................................................. Section 25.3 Minor Alterations 40

.................................................................................... Section 25.4 Adjoining Units 41 ........................................................................... Section 25.5 Substantial Alteration 41

Section 25.6 Procedure Afler Approval .................................................................... 41 ......................................... Section 25.7 Relocation of Boundaries-Adjoining Units 41


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ARTICLE26 . AMENDLENT OP DECLARATION SURVEY MAP AND PLANS. ARTICLES OR BYLAWS ................................................................................................... 42

............................................................................................ Section 26.1 Procedures 42 Section 26.2 Percentages of Consent Required .......................................................... 42

................................................................. Scction 26.3 Limitations on Amendments 44

ARTICLE 27 . TERMINATION OF CONDOMINIUM ..................................................... 44 Section 27.1 Action Required .................................................................................... 44 Sation 27.2 Condominium Act Governs ................................................................... 44

ARTICLE28 . NOTICES ................................................................................................... 44 Section 28.1 Form and Deliverg of Notice ................................................................. 44

............................................................. Section 28.2 Notices to Eligible Mortgagees 45

ARTICLE 29 . SEVERABILITY ....................................................................................... 45

ARTICLE 30 . EFFECTIVE DATE .................................................................................. 45

....................................... . ARTICLE 3 1 REFERENCE TO SURVEY MAP AND PLANS 45

ARTICLE 32 . ASSlGNMENT BY DECLARANT ............................................................ 46

SCHEDULE A Desaiption of land in Condominium

SCHEDULE B Description of Subsequent Subphase Propeny

SCHEDULE C Description of Additional Property

SCHEDULED Unit Descriptions; Allocated Interests


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ARTICLE I . DEFINITIONS.

Section 1.1 Words Defined For the purposes of this Declaration and any amendments hereto, the following definitions shall apply.

Additional P r o w means the land so deswibed in ScheduleC, as it may born time to time be amended upon the recarding of a S u b w e n t Phase Amendment pursuant ta Article 4, which the Declarant resaves tho right to add to the Condominium and to create Units and Limited CommonElcmcnts thereon.

Allocated Interests means the allocation of Common Expense Liability, interest in Common Elements and voting for each of the Units in the Condominium as set forth in Seaion 6.4.

means the articles of incorporation for the Association

Assessment means all sums chargeable by the Association against a Unit, including, without limitation: (a)genml and special assessments for Con~mon Expenses, Spccial Allocations, charges, and fines imposed by the Association; @)inter& and late charges on any delinquent acmunt; and (c) c o t s of collection, including reasonable attorneys' fces. incurred by the Association in connection with the collection of a delinqucnt Owner's accaunt.

Association means the owners association identified in Anicle 13

Board means thr board of directors of the Associatiom, as described jn Article 15. - means the bylaws of the Association au they may from time to time be

amended

Common Elemem means all portiom of the Condominium other than Unitg including the Limited Common Elements, but shall not include any buildings on the Subsequent Subphase Properly until Units have been created therein.

Common Expenses means expenditures made by or financial liabilities of the Association including those expense$ related to the maintenance, repair and replacement of the Common Elements and the Limited Common Elements, which are allocated to all Units, including allocations to reserves

Common Liability means the liability for Common Expenses allocated to each Unit. as s& forth in Schedulc D.



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Condominium means The Villas at Harbour Pointe, a wndominium, aeated under the Declaration and the Survey Map and Plans.

Condominium 4g means the Washington Condominium Ad, codified at RCW 64 34. as it may be from timc to timc amended.

Con- means any t r m f s l of the ownership of a Unif including a transfer by deed or by realestate contrncr

Declarant means Possession View, L L.C., a Washington limited liability company, and its rcpracntatives, successom, and assigns.

Declarant Control means the right of the Daclarant or persons designated by the Dcclarant to appoint and remow officers and members of the Board pursuant to Article 14.

Declaration mcans this Condominium Declaration for The ViIlas at Harbour Pointe, a wndominium, as it may from lime to time be amended.

Development R i~h t s means the rights of the Declarant lo (a) create Units and associated Limited Common Elements on the Subsequent Subphase Property, (b) add all or a porlion of the Additional Property to the Condominium, (b) create Units and associated Limited Common Elements on the Additiunal Roputy and (c)withdraw all or any portion of the Subsequent Subphase Propuly from the Condominium prior to the creation of Units thereon, as provided in Article 4 and elsewhere in the Declaration

Eli~ible Mo- means the Mortgagee that has filed with thc secretary of the Association a written request that it be given wpics of notics of any adion by the Association that requires the consent of Mortgagees.

-C means the Federal Homc Loan Mortgage Corporafion

means the Federal National Mortgage Association,

Foreclosure means a forfeiture or judicial or nonjudicial foreclosure of a mortgage or a deed in lieu thereof

FWD means theDepmment ofHouring and Urban Development

ld_entifvinc Numbs means the rnlmber of the Unit as listed in Schedule D and shown on the Survey Map and Plans.




Limited Common Element means a portion of the Common Elements allocated in Article 8 for Lhc exclusive use of one or more but fewer than all ofthe Units.

Manacme Auent means the person designated by the Board under Section 15.3.

-8gc means a mortgage, deed of trust or real estate contract.

M o r t e e means any holda, insura or guarantor of a morcgage on a Unit. -

Notice and Op~oRunitv to be Heard means the pmcedure described in Section 15.5.

Q!ang or Unit Owner means the Dcclarant or other person who owns a Unit, but dws not include any pcrson who has an interest in a Unit soleiy as security for an obligation.

means a natural person, corporation, partnership, limited partnership, trust, govanmental subdivision or agency, or o thu legal entity.

means the first phase of the Condominium (called Subphase IA), any Subsequent Phase or Subphase.

Special Allocations means the expenses of the Association which are allocated to certain Units pursuant to SSedion 16.8. including allocations to reserves, and the following utility services provided to the Unit Owners. water and snver.

Special Declarant R i~h t s means rights reserved for the benefd of the Declarant as specified in Article I I

Sub~hase meam the creation by the Declarant of Units and associated Limited Common Elements on a portion of the property in the Condominium or on all or a portion of the Subsequent Subphase Property or on a portion ofthe Additional P r m y pursuant to Article 4.

Subhase IA means the first phasc of the Condominium consisting of the property described in Schedule A, the I2 Units located on that pmperty and the Limited Common Elements allocatd to such Units.

Subsmuent Phase means the creation by the Declarant of additional Units and associated Limited Common Elements on all or a portion of the Additional Property pursuant to Article 4~

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Subgwent Phav Amendme* means an amendment to this Declaration recorded by the Declarant adding all or a portion of the Additional Property and creating Units and Limitul Comrl~on Elements on that property pursuant to Article 4.

Subseouent Subohase means the creation by the Dedarant of additional Units and associated Limited Common Elements on a portion of the property in the Condominium or the Additional Property or on all or a portion of the Subsequent Subphase Property pursuant to Article 4.

Subsequent Subohase Amendment means an amendment to this Declaration remrded by the Declarant creating Units and associated Limited Common Elements on the Subsequent Subphase Property pursuant to Article 4

-~ubphaseF'qom means that portion of any land in the Condominium so described in ScheduleB, as it ma)' from time to time be amended upon the m r d i n g of a Subsequent Phase Amendment or Subsequent Subphase Amendment, upon which the Declarant reserves the right to create Units and associated Limited Common Elemcnts pursuant to Article 4.

S u ~ e v Mau and Plans means t k survey map and plans filed simultaneously with the recording of this Declaration and any amendments, mmtions , and addenda thereto subsequently filed.

Transition Date means the date upon which the pcriod of Declarant Control terminates as determined in Article 14.

m t means a physical portion of the Candominim designated for separate ownership, the boundaries of which are described in Section 6.2 and shown on the Survey Map and Plans.

L A means the Veterans Adminisbation.

Section 1.2 mf Word*. The singular form of words shall include the plural and the plural shall include the singular. Masculine, feminine, and gender-neutral pronouns shall be used interchangeably.

Seuion 1.3 Stamtow Definitions. Some of the terms defined above are also defined in the Condominium An. The definitions in the Declaration are not intended to limit or contradict the definitions in the Condomi~lium Act. If there is any inconsistency or conflict, the definition in the Condominium Act will prevail.


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ARTICLE 2. CONSTRUCTION AND VALIDITY OF DECLpRATJON.

The Declaration and the Condominium Ad pruvide the f r m w o r k by which the Condominium is aeated and operated. In the event of a conflict between the provisions of the Declaration and the Condominium Act, the Condominium Act shall prevail. In the event of a w d i c t between the provisions of this Declaration m d the Bylaws, the Declaration shall prevail except to the extent the Declaration is inwnsistent with the Condominium Act. The creation of the Condominium shall not be impaired and title to a Unit and its interest in the Common Elements shall not be rendered unmarketable or orhenvise affected by reason of an insignificant failure of this Declaration or the S w e y Map and Plans M any amendment thereto to mmply with the Condominium Ad.

ARTICLE 3. NAME OF CONWMMlUM

The name of the Condominium created by this Declaration and the Survey Map and Plans is The Villas at HarbourPointe, a wndominium.

ARTICLE 4. DESCRlPTION OF LAND: DEVET.OPMENT IN PHASES.

Section 4.1 Qpcrivtion of Land. The land included in the Condominium and subjected to the Condominium Act is described in Schedule 4 as it may from time to time be amended pursuant to this Article. The Declarant reserves the right to withdraw all or a portion of the Subsequent Subphase Property, as it may from time to time be amended pursuant to this Article, as provided in Section 4.5. In that connection, the Declarant reserves the right to execute, on hehalf of the Unit Owners and the Assaciation, any applications to governmental agencies or other documents or instruments necessary to establish fhe Additional PropeRy, or portion thereof that the Declaranl desires to withdraw, as a legal lot.

Section4.2 Develovrnent in Phases. The Declarant intends to develop the Condominium in Phases and Subphases upon the land described in Schedules A, B and C. Phase 1, called Villa Monte, is located on thc land described in Schedule 4 is shown on the Survey Map and Plans. The Doclarant D AS constructed 12 Units in Subphase IA and rcscrves the right to create u p to an additional 66 Units in Villa Monte one or more Subsequent Subphases by (a) recording an amendment to the Declaration which amends (i) Skedu leB to describe any remaining land in the Condominium upon which the Declarant reserves the right to create Units or to withdraw and (ii) ScheduleD to show the new Units added to the Cundominium and to reallocate the Allocated Interests of all Units in the Condominium; and @)filing an amendment to the Survcy Map and Plans showing the Units created by that


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Subphase and the Limited Common Elements assigned thereto and m y remaining Subsequent Subphase Property, unless the Survey Map and Plans already shows the Units to be created in that Subphase and any remaining Subsequent Phase Propeny. The Declarant reserves the right to add all or a portion of the Additional Property to the Condominium and to create up to an additional 52 Units in one or more Phases (Subsequent Phases or Subphases) on the land described in Schedule C and designated on the S u ~ e y Map and Plans, as they may be amended, as the Additional Property or Subsequent Subphase Property. If and when the propeny described as Phase I1 is added to the Condominium, it will be called Villa Azurru and the Phase III property will be called Villa Rosa. The Declarant shall add the Additional Propeny and create the additional Units on that propeny by (a) recording an amendment to the Declaration which amends (i) Schedule A to show the land added to the Condominium, (ii) Schedule B to show any Subsequent Suhphase Propaty upon which the Declarant reserves the right to create Units in a Subsequent Subphnsc or to withdraw, (iii) Schedule C to show any remaining land whish may be added to the Condominium in a Subsequent Phase. (iv) Schedule D to show the new Units added to the Condominium and to reallocate the Allocated Interests of all Units in the Condominium, and (b) filing an amendment to the Survey Map and Plans showing the property added to the Condominium, the newly created Llnits and any remaining land which may later he added to the Condominium (Additional Property) or any remaining land i n the Condominium upon which the Declarant resew- the right to create Uniu or withdraw (Subsequent Subphase Propeny). The Declarant shall be the beneficial owner of all buildings on the Subsequent Subphase Property until Units within those buildings are created.

Section 4.3 lm~rovements in Subseuuent Phases or Suh~hases. The improvements added to the propcrty in a Subsequent Phase or Subphase shall be consistent with the improvements in Phase I in terms ofstructure type and quality of constmction.

Secfion4.4 Lkm. Any liens that arise in connection with the Declarant's ownership of or cunstruction of improvements on the Additional Property or the Subsequent Subphase Property shall auach only to the Declarant's interest in any Units owned by the Declarant or against thc Declarant's Development Rights and Special Declarant Rights and shall not adversely affect the rights of other Unit Owners or the priority of Mort~ages on the Units.

Section 4.5 Election tu Withdraw Land. The Declarant may at any time or times, elect to withdraw from the Condominium all or a portion of the Subsequent Subphase Propeny, as it may be described in ScheduleB at that time, by (a) recording a notice of withdrawal signed only by the Declarant which describes the land being withdrawn; (b) recording an amendment to Schedule A describing the land remaining in the Condominium; (c) recording an amendment to Schedule B describing any land remaining in the Condominium upon which the Drclarant reserves the right to create Units; and (d) filing

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an amendment to the Survey Map anti Plans showing the land remaining in the Condominium. The Declarant reserves the right to execute any applications to the city or county in which thc Condominium is located or o t h a documents or instruments necessary to segregwe the property the Declarant desires to withdraw from the Condominium from Lhc land to be left in the Candominium on behalf of the Unit Owners and the Association. If the Declarant elects to withdraw land from the Condominium, Declarant reserves the right to create reciprocal easements for ingress and egress over the roadways of the Condominium and such withdrawn land for the mutual benefit of the Condominium and the withdrawn land providing terms for such use and a sharing of costs hased nn the number of dwelling units located on thc rrspective parcels.

Scclion 4.6 ofJ&dooment u h t 5 The Development Rights specified herein shall terminate on the earlier of (a) the seventh anniversary of the recording of this Declaration or @) the recording of a notice signed by the Declaram that it no longerwishes to exercise any of the Development Rights.

ARTICLE 5. DESCRIPTION OF BUILDINGS.

There are three buildings in Subphase 1A of the Condominium, the locations of which are shown on the Survey Map and Plans. Thc Declarant intends to wnstmn an additional 15 buildings on the Subsequent Subphax Property in which the Declarant reserves the right lo create up to 66 Units in one or more Subsequent Subphases of Phase I . In addition, the Declarant may build approximately nine additional buildings on the Additional Property containing up to 52 Units. The number and locations of the buildings and Units to be wnstmcted on the Additional Property are subject to change.

ARTICLE 6. DESCRIPTTON OF UNITS: ALLOCATED INTERESTS.

Section 6 1 Number nnd Identification ofUniu. The Condominium has 12 Units in Subphase 1A. The Identifying Number of each Unit is set forth in Schedule D, as it may be amended upon the creation of additional Units by the Declnrnnt. Thc Declnrant has the right to create up to an additional 118 Units in the Condominium pursuant to Article 4 . The location of the Units are shown on the Survey Map and Plans, as it may be amended upon the creation of additional Units by the Declarant.

Section 6.2 Boundaries. Thc boundaries of the. Units are the walls, floors and ceilings of the Units, including all lath, furring, wallboard, plasterboard, plaster, paneling, tiles, wallpaper, paint, finished flooring, and any other materials constituting any part of the finished surfaces thereof, provided, that the Unit boundaries shall not include those Common




Elements specified in Article7. All spaces, interior partitions. and other fixhlres and improvements within the boundaries of a Unit are a part of the Unit.

Section 6.3 Unit Datq. Schedule D sets forth the following data for each Unit:

6.3.1 The approximate area, indicating approximate living area and garage area;

6.3.2 The number of bathrooms, whole or partial;

6.3.3 The number o f rwms designated primarily as bedrooms;

6.3.4 The level or levels upon which each Unit is located.

Each Unit has a gas fireplace. The location and wntlguration of each Unit are shown in the Survey Map and Plans

Section 6.4 Allocated Interests. Schedule D sets forth the Allocated Lntaests of each ofthe Units in the-cundominium, the purposes of Common W e n s e Liability, interest in the Common Elements and voting. The formulas for making the allocations are as follows:

Common Expense Liability: relative living area of Units

Common Interest: relative living area of Units

Voting: one vote per Unit

When Units in a Subsequent Phase or Subphase are created. the Allocated Interests shall be recalculated using the areas of the peexistinn Units plus the Units thereby created. When the Units in a Subsequent Phase or Subphase are created, the Declarant shall amend ScheduleD to show the Allocated Interests for the premtisting Units and the Units thereby created.

ARTICLE 7. COMMON ELEMENIS.

Section7.1 Descriotioq. The Common Elements are all portions of the Condominium other than the Units, including all portions of the walls, floors, or ccilings which are not a pan of or within the Unit boundaries. The Common Elements also include any chute, tlue, duct, wire, conduit, bearing wall, bearing column, or any other fixture which lies partially within and partially outddc the designated boundaries of a Unit which serves more than one Unit or any portion of a Common Element.


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Section 7.2 U s . Each Owner shall have the right to use the Common Elements in common with all other Owners and a right of access from the Owner's Unit across the Common Elemenu to the public streek Thc right to use the Common Elements extends not only to each Owner, but also to his agents, servants, tenants, family members, invite-, and licensees. The right to use the Common Elements, including the Limited Common Elements, shall be governed by the provisions of the Condominium Act, this Declaration, the Bylaws, and the rules and regulations of the Association.

Section 7.3 Corrvevance or E n c u m h r . a ~ o f Common Elemer~tJ. Portions of the Common Elements not necessary for the habitability of a Unit may be conveyed or subjected to a security interest by the Association of the Owners having at least 80% of the votes in the Association, including 80% of the votes excluding votes held by the Declarant for an afliliatc of Declarant (as defined in thc Condominium Act); but all of the Owners of Units to which any Limited Common Element is allocated must agree in order to cover that Limited Common Element or subject it to a security interest. Any conveyance, encumbrance, judicial sale or utha transfer (voluntary or involuntary) of an individual interest in the Common Elements shall be void unless the Unit to which that interest is allocated is also transferred.

ARTICLE 8. LIMITED COMMONELEMENTS_.

Section 8.1 Description. The Limited Common Elements allocatd to the Units are as follows:

8.1.1 The deck(r) and/or patio(s) adjacent to the Unit, if any;

8.1.2 The fireplace and flue serving the Unit, unless it is located within the Unit;

8 1.3 The driveway adjacent to the garagc of the Unit, if shown on the Survey Map and Plans; and

8.1.4 The grounds, landscaping and roads within Villa Monte are Limited Common Elements allocated to all of the Units in that Phase; and

8.1.5 . The grounds, landscaping and roads within Villa Azuno and within Villa Rosa, if and when they are added to the Condominium, shall he Limited Common Elements allocated respectively to all of the Units within each Phase.




The Declarant reservcs the right to amend this Section to describe any additional Limited Common Elements created in a Subsequent Phase or Subphase.

Section 8.2 &llocation. A Limited Commun Elemcnt may be reallocated between Units only with thc approval of the Board and by an amendment to thc Declaration executed by the Owners of the Units to which the Limited Common Element was and will be allocated The Board shall approve the request of the Owner or Owners under this Section within 30 days, or within such other period provided by the Declaration, unless the proposed resllocation does not mmply with the Condominium Act or the Declaration. The failure of the Board to act upon a request within such period shall be deemed approval thweof. The amendment shall be recorded in the names of the parties and of the Condominium. A Common Element may be reallocated as a Limited Common Element or a Limited Common Element may be incorporated into an existing Unit with the approval of 67 percent of the Owners, including the Owner of the Unit to which the Limited Common Flement will be allocated or incorporated Such reallocation or incorporation shall be reflected in an amendment to the Declaration and the Suwey Map and Plans.

Sedion 8.3 &. Each Owner shall have the exclusive right to use the Limited Common Elements allocated to the Owner's Unit The right to use the Limited Common Element extends to the Owner's agents. Eervants, tenant, family members, invitees and licensees.

ARTICLE 9. PARKING.

Each Unit in Villa Montc has a garage as part of the Unit In addition, certain Units have Limited Common Elsmmt drwcways which may be used for parlnng opcrahle passenger motor vehicles. The garages may be used for normal hwsehold storage; provided it does not affect the ability to park an automobile in the garaEc. All open parking spaces or area are intended for guest parking subject to rules and regulations adopted by the Board. The driveways and open parking spaces may not be used for parking trucks (ather than small pick-up bucks), trailers, or recreational vehicles, or for any purpoEs (other than parking passenger motorvehicles). Parking on the streets of the Condominium, except in designated parking spaces or area.$ is prohibited unless permitted by rule and regulation adopted by the Board. The Board may direct thal any vchicle or other thing improperiy parked or kept in a parking space be removcd, and if it is no1 removed the Board may cause it to be removed at the risk and cost ofthe Owner thereof.

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ARTICLE 10. PERMIlTED USES; MAINTENANCE OF UNITS: CONVEYANCFA.

Section 10.1 Residential Use: Timesharing-Prohibited. The Condominium is intended for and restricted to residential uses only, on an ownership, rental, or lease basis, and for social, recreational, or other reasonable activities normally incident to such uses, including usc as a home office not involving use of the Unit by nonresident employ= or regular visits to the Unit by customers or clients. Timesharing of Units, as defined in RCW 64.36, is prohibited.

Section 10.2 W s . Any lease or rental agreement must provide that its terms shall be subject in all respects to the provisions of the Declaration and the Bylaws and mles and regulations of the Association and that any failure by the tenant to comply with the terms of such documents, mles, and regulations shall be a default under the lease or rental agreement. IFany lease under this Section dow not contain the foregoing provisions, such provisions shall ncvcrtheless be deemed to be pan of the lease and binding upon the Owner and the tenant by reason of their being stated in this Declaration. Tbe Board may adopt a rule that requirrs any Owner desiring to rent a Unit to have any prospective tenant (otha than a relative of the Owner) screened, iu the Owner's cost, by a tenant screening s c ~ c e designated or approved by the Board and to hrmish the report of the tenant screening service to the Board or its designee prior to Owner's entering into a lcase with the prospective tenant. All leases and rental agreements shall be in writing. Copics of all leases and rental agreements shall be delivered to the Association before the tenancy commencas. If any lessee or occupant of a Unit violates or permits the violation by his guests and invitees of any provisions hereof or of the Bylaws or of the rules and regulations of the Association, and thc Board determines that such violations have been repeated and that a prior notice to cease has been given. the Board may give notice to the lessee or occupant of the Unit and the Owner thereof to forthwith cease such violations; and if the violation is thereafter r epea t4 the Board shall hnve the authority, on behalf and at the expense of the Owner, to evict the tenant or occupant ifthe Owner fails to do so aftcr Notice t o m the Board and an Opportunity to be Had. Thc Board shall have no liability to an Owner or tenant for any eviction made in good faith. The Association shall have a lien against the Owner's Unit for any costs incurred by it in connection with such eviction, including reasonable attorneys' fees, which may be collected and foreclosed by the Association in the same manner as assessments are wllected and foreclosed under Article 17. Other than as stated in this Section. there is no restriction on the right of any Owner to lease or otherwise rent his Unit.

Section 10.3 Maintenance of m s . Common Elements. and Limited Common Elements. The Association is responsible for maintenance, repair, and replacement of the Common Elements and the Limited Common Elements, and each Owner is responsible for maintenance, repair and replacement of the Owner's Unit Each Owner shall, at thc Owner's sole expense, keep the interior ofthe Unit wd its equipment, appliances, and appurtenances in


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a clean and sanitary wndition, free of rodents and pests, and in good order, wndition, and repair and shall do all redecorating and painting at any time necessary to maintain the good appearance and wndition of the Unit. Each Owner shall replace any broken glass in the windows or oxterior doors of the Unit. Each Owncr shall be responsible for the operation. maintenance, repair. or replacement of any exterior doors (including the garage door). plumbing fixtures, fireplace flue, water hcater, fans, or heating equipment which serve only that Unit, whether or not located in the Unit. The Association may, as a Common Expense, provide for the inspection of any portion of a Unit or Limited Common Element, the failure of which to maintain properly may causc damage to the Common Elements, Limited Common Elements or another Unit or cause unnecessary Common Expenses, including, but not limited to, fireplace and flue, bathtubs, sinks, toilets, hot water tank and plumbing and electrical fixtures. If the inspection discloses the need for repair or replacement, the Association may either require the responsible Owner to make the repair or replacement or to make the repair or replacement itself and allocate the cost thereof ro the Owner. Notwithstandiw the furcgoing, the Declarant shall be responsible for the actual cost of maintenance, repair, replacement and insurance of the improvements on the Subsequent SubphasePropcrty and Additional Properly until Assessments have wmmenced with respect to Units created on that property. The Declarant may pay such costs directly or thoughthe Association.

Section 10.4 -ce. In order to prcserve a uniform exterior appearance of the buildings, the Board shall provide for the maintenance of thc exterior of the buildings. No Owner may modify or decorate the exterior of a building, or screens, doon. awnings, or other purtions of any Unit visible from outside the Unit without the prior written consent of the Board or in accordance with rules or regulations of the Association In particular, no portion of any rndio or television antennas, satellite dish, or other appliance may be installed on the exterior of a building without the prior wriuen consent of the Board. Unless otherwise established by rulc or regulation of the Board, all portion of curtains, blinds or draperies visible from outside the Units shall be white or off-white and h e r s shall not use sheets or imilar items as temporary window coverings. Owners shall replace the glass or screens in the windows or doors of the Units only with materials of similar color and quality to those originally installed.

Section 10.5 Effect on lnrurance. Nothing shall be done or kept in any Unit or in any Common Elcment that will increase the rate of insurance on the pmpcrty without the prior written consent of the Board. Nothing shall be done or kept in any Unit or in any Common Element that will result in the cancellation of insurance on any pan of the property, or that would be in violation of any laws.

Section 10.6 Usc or Alteration of Common and Limited Common Elemenu. Use of the Common Elements and Limited Common Elements shall be subject to the provisions of this Declardtion and the rules and regulations of the Board. Nothing shall be altered or


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constructed in or removed from any Common Element or Limited Common Elcment except upon the prior written consent of the Board.

Section 10.7 m. No sign of any kind shall be displayed to the public n e w on or from any Unit. Limited Common Element or Common Element without the prior consent of the Board. The Board may e r a on the Common Elements, a master directory listing Units that arc for sale or lease or may regulate the size and location of signs advmtising Units for sale or lease. This Section shall not apply to the Declnrant who may post such signs on the property as it deems ncccssary or appropriate for the sale of Units in the Condominium as long as the Declarant has a Unit for sale.

Section 10.8 &. Domesticated animals, birds or reptiles (herein referred to as "pets") may be kept in the Units subject to rules and replations adopted by the Board. Dogs will not be allowed on the Common Elements unless they are on a leash and are being walked to or t o m the Unit to a public road. The Board may, after Notice and Opportunity to be Heard, requim the removal of any pct which it finds is disturbing other Owncrs unreasonably, and may exercise this authority for specific pets wen though other p a s are permitted to remain

Section 10.9 Ouict Eniovment. No Owner sliall permit anything to be done or kept in the Owner's Unit, Limited Common Elements or Common Elements which would interfere with the right of quiet enjoyment of the Mher residents of the Condominium. In particular. sound systems loudspeakers shall not be rigidly attached to the party wall with another Unit or the ceilingy, walls, shclves or cabinets in a Unit in a manner that will induce vibrations into the struaurc of the building.

Section 10.10 Trash and Garba~c Removal. The Owners shall be responsible for removing their own trash and garbage from their ilnits. Trash and &age cuntainers shall be kept in the Units except on garbage pick-up day.

Section 10.11 Offensive or II lc~al Activities. No noxious, offensive or illegal activity shall be carried on in any Unit, Limited Common Element or Common Elcment, nur shall anything be done therein that may be or b m m e an annoyance or nuisance to other Owners. Owners shall not permit odon to be emitted from their Units which are unreasonably offensive to other residents in the Condominium.

Section 10.12 Convevance bv Owners. Notice R e d . The right of an Owner to the Unit shall not be subject to any r i ~ h t of approval, disapproval, fust refusal, or similar restriction by the Association or the Board, or anyone acting on their behalt An Owner intending to convey a Unit shall deliver a written notice to the Board, at least two weeks before closing, specifying (a) the Unit being sold; @)the name and address of the purchasa,


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of the closing agent, and of the title insurance company insuring the purchaser's interest; and (c) the estimated closing date. The Board shall have the right to notify the purchaser, the title insurance company, and the closing agent of the amount of unpaid assessments and charges outstandins against the Unit, whether or not such information is requested. Promptly upon the conveyance of a Unit, the new Unit Owner shall notify the Association of thc date of the conveyance and the Unit Owner's name and address. The Association shall notify each insurance company that has issued an insurance policy under Article21 of the name and address of the new Owner and request that the new Owner be made a named insured under such policy. At the time of the first conveyawe of each Unit, every mortgage, lien or other encumbrance affecting that Unit and any other Unit or Units or real property, other than the percentage of undivided interest of that Unit in the Common Elements, shall be paid and satisfied of record, or the Unit being conveyed and its undivided interest in the Common Elements shall be released therefrom by partial release duly recorded or the purchaser of that Unit shall receive title insurance from n licensed title insurance company against such mortgage, lien or other encumbrance.

ARTICLE 1 I . DE L 1, RT

Section 1 I . 1 Develooment Riehts. The Declarant reserves the Development Riglrts to (a) create up to 66 additional Units and Limited Common Elements on the Subsequent Subphase Property, (b) add all or a portion of the Additional Property to the Condominium, (c) create up to 52 additional Units and Limited Common Elements to those Units on the Additional Property in Subsequent Phases or Subphases, (d) withdraw all or a portion of the Subsequent Subphase Propmty, as it may be defined. before conveyance of a Unit therein; and (e) utilize thc casement rights specified in Section 24.3. The Declarant shall be entitled to all of the income from any Units created on the Additional Property or Subsequent Subphase Property until they arc conveyed by the Declarant.

Section 11.2 Special D & r a w . The Declnrant reserves the following Special Declarant Rights: (a) to mmplete any improvements shown on the Survey Map and Plans; (b) to maintain sales oRices, management offices, signs advertising the Condominium, and models in Units which are not occupied and are for sale by the Declarant, in Units owned by the Declarant, and in the Common Elements of the Condominium; (c) to use easements through the Common Elements for the purpose of making improvements within the Condominium; and (d) lo elect, appoint or remove any officu of the Associatiou or any member of the Board during the period of Declarant Control 8s provided by Article 14.

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located Thc rights and liabilities of the parties involved in the such a transfer and of all persons who succeed to any Development Right or Special Declarant Right, are set wr in RCW 64.34316,

ART1CI.E 12. ENTRY FOR REPAIRS OR MAINTENANCE

The Aswciation and its agents w employees may cnter any Unit and the Limited Common Elements allocated thcreto to effect repairs, improvements, replacements, maintenance or sanitation work deemed by the Board to be necessary in the performance of its duties, ta do necessary work that the Owner has failed to perform, or to prevent damage to the Common Elcments or to another Unit. Except in cases of great emergency that preclude advance notiec, the Board shall cause the Unit ompan t to be given Notice and an Opportunity to be Heard as far in advancc of entry as is reasonably practicable. Such entry shall he made with as littlc inconvenience to the Owners and occupants as practicable. The Board may levy a special assesment against the Owner of the Unit for all or pan ofthe cost of work that the Owner has failed to pafonn which may be collected and foreclosed by the Association in the same manner as assessments are collected and foreclosed under Article 17.

ARTICLE 13. Q W R S ASSOCIATION.

Section 13.1 Form of Association. The Owners of Units shall constitute an owners association to bc known as The Villas at Harbour Pointe Owners Association. The Association shall be organized as a nonprofit corporation. no Later than the date the first Unit in the Condonlinium is conveyed. It will be governed by the Board the number of directors of which shall be specified in the Bylaws. The rights and duties of the Board and of the Association shall be governed by the provisions of the Condominium Act, the Declaration and the Bylaws.

Section 13.2 m. The Board will adopt Bylaws to supplement the Declaration and to provide for thc administration of the Association and the property and for other purposcs no4 inconsistent with the Condominium A a or the Declaration.

Section 13.3 Qualification and Transfer. Each Owner of a Unit (including the Declarant) shall be a member of the Association and shall be entitled to one membership for each Unit owned, which membership shall be considered appunenanl to that member's Unit. Ownership of a Unit shall be the sole qualification for membership in the Association. A membership shall not bc transferred in any way except upon the transfer of title to the Unit and then only to the transferee of title to the Unit; provided. thnt if a Unit has been sold on contract, the contract purchaser shall exercise the rights of the Owner for purposes of the


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Association, this Declaration, and the Bylaws, except as hereinafter limited, and shall be thc voting representative unless otherwise specified. Any attempt to make a prohibited trans& shall be void. Any transfer of title to a Unit shall operate automatically to transfer the membership in the Association to the new Owner.

. . Section 13.4 Powersof the Ass-. In addition to those actions authorized

elsewhere in the Declaration, the Association shall have the power to:

13.4.1 Adopt and amend the Bylaws and thc rules and regulations;

13.4.2 Adopt and amend budgets for revenues, expenditures, and reserves, and impose and collect Common Expenses and special assessments from Owners;

13.4.3 Hire and discharge or contract with Managing Agents and other employees, agents, and independent contractors;

13.4.4 Institute, defend, or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more Unit Owners on matters affecting the Condominium;

13.4.5 Make wntracts and incur liabilities;

13.4.6 Regulate the use, maintenance, repair, replacement, and modification of Common Elements and Limited Common Elements;

13.4.7 Control the planting, pruning and removal of all trees and shrubs rw that views from the Units are reasonably preserved and protected;

134.8 Cause additional improvements to be made as a pan of the Common Elements;

13.4.9 Acquire, hold, encumber, convey. and dispose of, in the Association's name, right, titlc, or interest to real or tangible and intangible personal property, and arrangc: for and supervise any addition or improvement to the Condominium; pravided that:

13.4.9.1 If the estimated east of any separate property acquisition or addition or improvement to the Condominium exceeds $10,000, the approval of Owners holding a majority of the votes in the Association shall be required; and if such estimated cost exceeds $25,000, the approval ofowners holding 75 percent of thevo tu in the Association shall be required; provided that the Association may acquire a manager's unit



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within the Condominium with the approval of Owners holding a majority of the votes in the Association;

13.4.9 2 No structural changes shall be made to a building without the approval of Ownen holding at least 75% ofthe votcs in thc Assuciation;

13.4.9.3 No structural change shall be made to a Unit without the approval of the Owner of that Unit; and

13.4.9.4 The beneficial interest in any property acquired by the Association pursuant to this Section shall be owned by the Owners in the same proportion as their respective interests in the ComrnonElemmts and shall thereafter be held, sold, leased, mortgaged or otherwise dealt with as the Board shall determine.

13,410 Grant easements, leases. licenses, and concessions through or over the Common Elements and petition lor or consent to the vacation of streets and alleys;

13.4.11 To a n on behalf of the owner of the Condominium property with rcspect to any matter arisingundcr any of the covenants, restrictions, easements or agreements of record affecting the Condominium property;

13.4.12 Impose and collect any payments, fees, or charges for the use, rental, or operation of the Common Elements and for services provided to Owners;

13.4.13 Acquire and pay for all goods and services reasonably necessary or convenient for the efficient and orderly functioning of the Condominium;

13.4.14 Impose and collect charges for late payment of assessments as further provided in Article 17 and, after Notice and an Opportunity to be Hcard by the Board or by such representative designated by the Board and in accordance with such procedures as provided i n this Declaration, the Bylaws, or mlcs and regulations adopted by the Board, levy reasonable fines in accordance with a previously established schedule thereof adopted by the Board and furnished to the Ownerr for violations of this Declaration, the Bylaws, and ~ l e s and regulations of the Association;

13.4.15 Impose and collect reasonable charges for the preparation and recording of amendments to this Declaration, resale certificates required by RCW 64.34.425 and statements of unpaid assessments;

13 4.16 Provide for the indemnification of its officers and Board and maintain directon' and officers' liability insurance;



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1 3 4 i 7 Assign ik right to future income, including the right to receive assessments;

13.4.18 Pay, as a Common Expense, assessments owing with respect to the property in the Condominium to Harbour Pointe Maintenance Association;

13.4.19 Provide or pay, as a Special Allocation based on usage, the following utility sswiccs to thc Units: water and sewer;

13.4.20 Exercise any other powers conhrred by this DecIaration or the Bylaws;

13.421 Exercise all other powers that may be exercised in this state by the samc type orcorporation as the Association; and

13.4 22 Exercise any other powers necessary and proper for the governance and operation of the Association.

Section 13.5 Financial Statements and Rccords. The Association shall keep financial records in accurdance with generally accepted accounting principles and in sufficient detail to enable the Association to comply with the resale certificate requirements set forth in RCW 64.34.425. All financial and other records shall be made rensonably available for examination by any Unit Owner and the Owner's nuthorized agents. At least annually, the Association shall prepare, or cause to be prepared, a financial statement of the Association in accordance with generally accepted accounting principles. The annual financial statement shall be audited at least annually by a certified pub[ic accountant who is not a member of the Board or an Owner. The financial statement shall be completed in time for the Association's annual meeting and in any event within 120 days following the end of the fiscal year. Any mortsagee will, upon request, be entitled to receive the annual financial statement within 120 days following the end of the fixal year. The Board, or persons having 35% of the voting power of the Association, may require that an audit of the Association and management books be presented at any special meeting. An Owner, at his expense, may at m y reasonable time conduct an audit of the books of the Board and Association. Upon written request of FHLMC, F N M 4 HUD, or VA, if it is a Mortgagee, the Association shall provide within a reasonable time the financial statement of the Association for the preceding fiscal year.

Section 13.6 w c t i o n of Condominium Documents. B w k s and Remrds. The Association shall make available to Owners, Mortgagees, prospective purchasers and their prospective Mortgagees, and the agents or attorneys of any of them, current copies of this


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Declaration, the Articles, the Bylaws, the rules and regulations of the Association, and other books, records, and financial statements of the Association. "Available" shall mean available for inspection upon request, during normal business hours or under other reasonable circumstances. The Association may require the requesting party to pay a reawnable charge to cover thc cost of making the copies.

ARTICLE 14. DECLARANT CO W Q D

Section 1 4 1 Control UntilTransition Date. Until the Transition Date, the Declarant shall have the right to appoint and remove all members of the Board; provided that (I) not later than 60 days after conveyance of 25 percent of the Units that may be created to Owners other than the Declarant, at least one memba and not less than 25 percent of the members of the Board must be elected by Owners other than the Declarant, and (2) not Inter than sixty days after cnnveyance o r 50 percent of the Units that may be created to Owners other than the Declarant, not lesr than one-third of the members of the Board must be elected by Owners other than the Declarant.

Section 14.2 Transition Date. Declarant Control of the Assaciation shall terminate on the Transition Date. The Transition Date shall be no later than the earlier of: (a) 60 days after conveyance of 75 percent of the Units that rnay be created to Owners other than the Declarant; @) two years aftcr the last conveyance of a Unit (except as security for a debt); (c) two years after the last exercisc of a Development Right to add new Units; or (d) the date on which the Declarant records an amendment tu the Declaration pursuant to which the Declarant voluntarily surrenders the right tn further appoint and remove oficers and members of the Board. If the Dmlarant voluntarily surrenders control pursuant to (d) above. the Declarant may require that for the duration of the period of Declnrant Control, specified actions of the Association or the Board, as described in a recorded instrument executed by thc Declarmf be approved by the Declarant before they become effective.

Section 14.3 Declaranj's Transfer of Association Control. Within 60 days after the Transition Date. the Declarant shall deliver to the Association all properly of the Owners and of the Association held or controlled by the Declarant inchding but not limited to, the following:

14.31 The original or a photocopy of the recorded Declaration and each amendment to the Declaration;

14.3.2 The certificate of incorporation and a copy or duplicate original of the Arlicles as filed with the secretary of state;


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14.3.4 The minute books, including all minutes and other books and rccords of the Association;

14.3.5 Any rules and regulations that have been adopted;

14.3.6 Resignations of uficers and members of the Board who are required to rcsign because the Declarant is required to relinquish wntrol of the Association,

143 .7 The financial r m r d s , including cancelled checks, bank statements, and financial statements of the Association, and source documents fiom the time of incorporation of the Association through the date oftransfer or wntrol to the Owners;

14.3.8 Association funds or the wntrol of the finds ofthe Association;

14.3.9 All tangible personal propedy of the Association, represented by the Declarant to be the property ofthe Association and inventory of the property;

14.3.10 Except for alterations to a Unit done by a Unit Owner other than the Declarant, the copy of the Declaraot's plans and specifications utilized in the construction or remodeling of the Condominium, with a certificate of the Declarant or a liccnsed architect or engineer that the plans and specifications represent, to the b u t of such Person's knowledge and belief, the actual plans and specifications utilized by the Declarant in the construction or remodeling of the Condominium;

14.3.1 1 Lnsurance policies or wpies thereof for the Condominium and the Associstion;

14.312 Copies of any certificates of occupancy that may have been issued for the Condominium;

14.3.13 Any other permits issued by governmental bodies applicable the Condominium in force or issued within one year before the Transition Date;

14.3.14 All original w m u t i e s that are still in effcct for the Common Elements, or any other areas or facilities which the Association has a responsibility to maintain and repair. from the contractor, subcontractors, suppliers, and manufacturers and all owners manuals or insmctions furnished to tbe Declaranl with respect to installed equipment or building systems;


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14.3.15 A roster of Unit Owners and Eligible Mortgagees and their addresses and telephone numbers, if known, as shown on the Declaront's records and the date of closing of the first sale of each Unit sold by the Declarant;

14.3.16 Any leases of the Common Elements or areas and other leases to which the Association is a party;

14.3.17 Any employment contracts or service contracts in which the Association is one of the contracting parties or service contracts in which the Asaociation or the Unit Owners havc an obligation or a responsibility, directly or indirectly, to pay some or all orthe fee or charge of the Person performing the s e ~ c r s ; and

14.3.18 All other contracts to which the Association is a party.

Section 14.4 M..Q~ Records U ~ o n Transfer. Upon termination of the period of Declarant Contml. the records of the Association shall be audited as of the datc of transfer by an independent certified public accountant in accordance with generally accepted auditing standards unless the Owners, other than the Declarant, by two-thirds vote, elect to waive the audit. The costs of the audit shall be a Common Expense.

Section 14.5 Termination of Contracu and laases Madc Bv the Dcclarant. If entered into before the Board elected pursuant ta Sedion 15.1 takes office, (I) any management contract, employment contract, or lease of recreational or parking areas or facilities or (2) any other contract or lease between the Association and the Declnrant or an affiliate of the Dcclarant, as defined by RCW W.34.020(1), may be terminated withoul penalty by the Association sl any time after the Board elected pursuant to Section 15.1 takes ofice upon not less than 90 days' notice lo the other party or within such less notice period provided for without pennhy in the contract or lease. This Section does w t apply to any lease, the termination of which would terminate the Condominium or reduce its size, unless the real property subject tu that lease was included in the Condominium for thc purpose of avoiding the right of the Association to taminatc a lease under this Section.

ARTICLE 15. THE BOARD.

Section 15. I Selection of the Board and Officm. Prior tu the Transition Date. election or appointment of members of the Board shall be governed by Section 14.1. Within 30 days after the Transition Date, the Owners shall elect a Board, a majority of whom must be Unit Owners. The number oiBoard members and their t m s of services shall be specified in the Bylaws. Thc Board shall elect officers in accurdance with the pmcedurcv provided in the


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Bylaws. The memben of the Board and officers shall take office upon election. Removal of Board memben, and their terms of service shall be as provided in the Bylaws.

Section 15.2 Powers of the Board. Except as provided in this Declaration, the Bylaws or the Condominium Act, the Board shall at all times act on behalf of the Association. The Bmard may exercise all powers of the Asmiation, except as otherwise provided in the Condominium Act, Declaration orthe Bylaws.

Section 15.3 a g m . The Board may contract with w expmienced professional Managing Agent to assist the Board in the management and operatiun of the Condominium and may delegate such of its powers and duties to the Managing Agcnt as it deems to be appropriate, except as limitcd herein. If professional management has been required by FNMA, FHLMC or other similar agency or wrporation, the procedure for terminating professional management and assuming self-management shall be that procedure set fonh in Article 27. Any cnntract with a Managing Agent shall have a term no longer than one year (but may he renewable by agreement of the parties for successive one-year periods) and shall be terminable by the Board without payment of a termination fee, either (1) for cause, on 30 days' written notice, or (2) without cause, on not more than 90days' written notice.

Section 15.4 Limitations on Board Authority. The Board shall not act on bchalf of the Association to amend the Declaration in any manner that requires the vote or approval of the Unit Owners pursuant to Article 27, to terminate the Condominium pursuant to Article 27. or to elect members of the Board or determine the qualifications, powers, and duties, or terms of office of members of the Board. The Board may, in acwrdance with the Bylaws, fill vac~ncies in its membership for thc unexpired portion of any term.

Section 15.5 Riaht to Notice and Ovwrtunitv to Be He& Whenever this Declaration requires that an action of the Board be takem after 'Notice and Opportunity to be Heard," the following procedure shall be observed: The Doard shall give written notice of the proposed adion to all Owners, tenants or occupants of Units whose interest would be signilicantly affected by the proposed action. The noticc shall include a general statement of the proposed action and the date, time and place of the hearing, which shall be not less than five days from the date notice is delivered by the Board. At the hearing, the affected person shall have the right, pasonally or by a representative, to givc testimony orally, in writing or both (as specified in the notice), subject to reasonable ~ l e s of prucedure established by the Board to assure a prompt and orderly resolution of the issues. Such evidence shall be considered in making the decision but shall not bind the Board. The affected person shall be notificd of the decision in the same manner in which notice of the meeting was given.



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ARTICLE 16. BUDGET AND ASSESSMENTS.

Section 1 6 1 Fiscal Year. Thc Board may adopt such fiscal year for the Association as it deems to be convenient Unless another year is adopted, the fiscal year will be the calendar year.

Section 16 2 P l ' n of Budeet. Not less than 30 days before the end of the fiscal year the Board shall prepare a budget for the Association for the coming year. In

its budget the Board shall estimate the Common Expenses of the Association to be paid during the year, make suitable provision for accumulation of reserves, including amounts reusonably anticipated to be required for maintenance, repair, and replacement of the Common Elements and the Limited Common Elements, and shall take into acwunt any surplus or deficit carried over from the preceding year and any expected income to the Association. The Declarant shall prepare the inilial budget for the first fiscal year of the Association.

Section 16.3 Ratification of B u d ~ e L Within 30 days after adoption of any proposed budget for the Condominium, the Board shall provide a summary of the budget to all the Owners and shall set a datc for a meeting of the Owners to consider ratification of the budget not less than 14 nor more than 60 days after mailing uf the summary. Unless at that mecting the Owners to which a majority of thc voles in the Association are allocated reject the budget, rhe budget is ratified, whether or not a quorum is present In the event the proposed budget is rejected or the requirul notice is not given, the periodic budget last ratified by the Unit Owners shall be continued until such time as the Unit Owners ratify a subsequent hudgel proposed by the Board. If the Board proposes a supplemental budgct during any fiscnl year that resulls i n an increase in an Owner's Assessments, such budget shall not take effect unless ratified hy the Unit Owners in accordance with this Section

Section 16.4 Su~olement.al Bud@& If during the year the budget proves to be inadequate for an4y reason, including nonpayment of assessments, the Board may prepare a supplemental budget for the remainder of the year. A supplemental budget that results in increase in an Owner's Assessments shall be ratified pursunnt to Section 16.4. The Board shall also prepare a supplemental budget when additional Units are created pursuant to Article 4, but such budget nced not be ratifled by the O w n m under Section 16.4 unless the supplemental bud@ proposes a greater than five percent increase in Assessments on the existing Units

Section 16.5 Assessments for Common Exoenses. The sums required by the Association for Common Expenses as reflected by the annual budget and any supplemental budgets shall be divided into installments to be paid each month over the period of time covered by the budgel or supplemental budget. The monthly Common Expense assessment


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for each Unit is determined by the Common Expense Liability allocated to each Unit times the total monthly installment for Common Expenses for all Units. Monthly assessments begin accruing for all Units in a Phase upon the closing of the sale of the first Unit in that Phase by the Declarant; provided that the Declarant may delay the wmmencement of Assessments against the Units in that P h w and pay all actual Common Expenses (but no allocations to reserves) for that Phase.

Section 16.6 Contribution to Initial Workiw Caoital. In connection with the first conveyance of each Unit, the initial purchaser shall pay to the Association as a nonrehndahle contribution to an initial working capital fund in an amount equal to two times the estimated monthly Assessment against the Unit, which amount shall not be considered as an advance payment of regular Assessments. On the Transition Date. the Declarant shall make wch contribution for any Units remainingunsold on that date and shall be entitled to be reimbursed lhc amount w, paid as each such Unit is mmreyed. The Declarant sliall not use any of the working capital fund to defray any of its expenses, reserve contributions or constmction casts or to make up any budget deficits prior to the Transition Date.

Section 16.7 M e w Portion oflronertv Subiect to DevelopmentSighW In addition to the Declarant's obligation to pay Assessments as a Unit Owner as provided

above, the Declarant shall pay all actual costs associated with the operation, maintenance, repair, replacement and insurance ofthe property and buildings on the Additional Property or the Subsequent Subphase Property. until Assessments have commenced with respect to Units created thereon. Costs not specifically metered or charged to the Units that have been created on the Additional Property or the Subsequent Subphase Property shall be allocated between the Assoc~ation and the Declarant bascd on ihc formula Tor Common Expense Liability specifid in Section 6 4 of the Units for which Assessments are being charged and Units with respect to which the Dcclarant is paying all costs and delaying wmmencement of Assessments, as provided in Section 16.5.

Section 16.8 ~ A I I O - . The mst of water and sewer senice to the Units will be paid be the Association and specially allocated to the Units based on usage as determined submeters or other reasonable means. The Board may require that each Owner maintain a deposit with the Association in an amount determined from time to time by the Board as a security deposit. The cost of maintenance, repair and replacement of the grounds. landscaping, mads and water for irrigation within each Phase shall be specially allocated to the Units within that P h w .

Scction 16.9 ~ ~ c i n l Assessments. For those Common Expenses which cannot reasonably be calculated and paid on a monthly basis, the Board may levy a special assessmcnt for such expenses against the Units, subject to ratification by the Owners pursuant to Section 16.3. To the extent that any Common Expense is caused by the misconduct of an


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Owner or tenant of any Unit, the Association may specially assess that expenso against that Unit.

Section 16.10 w g f Reserves: Assessmenls. The Board shall ueate reserve accounts for anticipated expenses for repairs, replacement and improvements which will occur in the future in order to accumulate suficied funds to pay such expenses when they occur. The operation of reserve accounts and assessments for reserve accounts shall bc further governed by the Bylaws.

Section 16.1 1 Notice of Assessment. TheBoard shall notify each Owner in writing of the amount of the monthly general and special assessments lo be paid for the Owner's Unit and shall furnish copies of all budgcts and the Common Expense Liability allocations which apply to the Unit, on which the general and special assessment% are based. The Board shall furnish the same information tn an Owner's mortgagee if so requested.

Section 16.12 Pavment of Monthlv Assessments. On or before the first day of each calendar month each Owner shall pay or cause to be paid to the treasurer or designated agenl of the Association all assessments against the Unit for that month Any assessment not paid by the first day of the ulendnr month for which it is due shall be delinquent and subject to late charges, interest cha r~es and collection procedures as provided in Anicle 17.

Section 16.13 Proceeds Belong to Associatiw. All assessments and other receipts received by the Assuciation on behnlf of the Condominium shall belong to the Association.

Section I N 4 Failure tn Assess. Any failure by the Board or the Association to make the budgets and assessments hereunder before the expiration of any year for the ensuing year shall not k deemed a waiver or modification in any respect of the provisions of this Declaration, or a release of the Owners from the obligation to pay assessments during that or any subsequent yew, and the monthly assessments amounts established forthe preceding year shall continue until new assessments are established.

Scction 16.15 Cqaficate of Unoaid Assessments. Upon the request of any Owner or Mortgagee of a Unit, the Board will furnisl~ a certificate stating the amount, if any, of unpaid assessments chargcd to the Unit. The certificate shall be conclusive upon the Board and the Association as tu the amount of such indebtedness on the date of the certificate in favor of all purchasers and mortgagees of the Unit who rely on the certificate in good faith. The Board may establish a reasonable fee to be charged to reimburse it for the cost of preparing the ceriificate.



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Section 16.16 Recalculation of Assessments. If Common Fxpense Liabilities are reallocated, Common Expense assessments, special assessments. and any installment thereof not yet due shall be recalculated in accordance with the reallocated liabilities.

ARTICLE 17. LIEN AND COLLECTION OF ASSESSMENTS.

Section 17.1 Assessments Arc a Lien: Priority. The Association has a lien on a Unit for any unpaid assessrilent levied against a Unit tiom the time the assessment is due. A lien under this Anicle shall be prior to all other liens and encumbrances on a Unit except: (a) liens and encumbranceq recorded before the recording of this Declaration; @) a mortgage on the Unit recorded before the date on which the assessmcnt sought to be enforced became delinquent, EXCEPT to the extent of assessments for Common Expenses, excluding any amounts for capital improvements, based on the periodic budgets adopted by the Association pursuant to Anicle 16 which would have become due during the six months immediately preceding the date of a sheriffs sale in an action for judicial foreclosure by either the Association or a mortgagee, the date of a trustee's sale in a nonjudicial foreclosure of a mortgage, or the date of recording of the declaration of forfeiture in a proceeding by the vendor under a real estate contract; PROVIDED that the priority of the Awciation's lien against Units encumbered by a mongage hcld by an Eligible Mortgagee or by a mortgagee which bas ~ i v e n the Association a written request for a notice of delinquent assessments shall be reduced by up to three months if and to the extent that such lien priority include any delinquencies which relate to a period aRer such mortgagee becomes an Eligible Mortgagcc o r has given such notice and before the Association gives such mortgagee a written nutice of the delinquency; arid (c) liens for real property taxes and other governmental assessments or charges against the Unit. Recording of this Declaration constitutes record notice and perfection of the lien for assessments; however, the Association may record a notice of claim of lien for assessments in the real property recards of the county in which the Condominium is located. Such recording shall not constitute the written notice of delinquency to a mortgagm referred to above.

l o a ~ c ~ a l Fo . .

Section 17.2 Lien Mav be Forec reclosure. The lien arising under this Anicle may be enforced judicially by the Association or its authorized representative in the manner set forth in RCW 61-12, or nonjudicially in the manner set forth in Section 17.3. The Association or its authorized rcprcsentative shall have the power to purchase the Unit at the foreclosure sale and to acquire, hold, lease, mongage, or convey the samc. Upon an express waiver in the complaint of any right to a deticiency judgment in a judicial foreclosure anion, the period of redemption shall be eight months. Nothing in this Section shall prohibit the Association from laking a deed in lieu of foreclosure. Except as pmvided in the excrgtion to (b) in Section 17.1, the holder of a mortgage or other purchaser of a Unit who obtains the right of possession of a Unit through foreclosure sliall not he liable for any assessments or




iristallments thereof that became due prior to such right of possession. Such unpaid assessments shall be deemed to be Common Expenses collectible from all the Ownm. including such mortgagee or other purchaser of the Unit. Foreclosure of a mortgage does not relieve the prior Owner of personal liability for assessments a c c ~ i n g against the Unit prior to the date of such sale

Section 17.3 Noniudicial Fonclogll~~. A lien arising under this Article may be foreclosed nonjudicially in the manner s a fonh in RCW61.24 for nonjudicial foreclosure deeds of uust For the purpose of preserving the Association's nonjudicial foreclosure option, this Declaration shall be considered to create a grant of each Unit in trust to Chicago Title Insurance Company or its succcvsors or assigns ("Tmstee"). to secure the obligations of each Unit Owner ("Grantor") ta the Association C'Beneficiary") for thc payment of assessments. Grantor shall retain the right to possession of Grantor's Unit so long as Grantor is not in default of an obligation to pay assessments The Tnrstce shall have a power of sale with rcspect to each Unit, which becomes operative in thc case of a default in a Grantor's obligation to pay assessments. The Units are not used principally for agricultural or farming purposes. If the Association forecloses its lion nonjudicially pursuant ta this Section, it shall not be entitled to the lien priority over mortgages provided in exception (b) uf Sectiun 17.1.

Section 17.4 Receiver Uurine Fo-. From the time of commencement of an action by the Association to foreclose a lien for nonpayment of delinquent assessments against a Unit that is not occupied by the Owner thereof, the Association shall be entitled to the appointment of a receiver to collect from the lessee thereof the rent for the Unit as and when due. If the rent is not paid, the receiver may obtain possession of the Unit, refurbish it for renal up to a reasonable standard for rental Units in this type of Condominium, rent thc Unit or permit its rental to others, and apply the rents first to the cost of the receivership and attorneys' fees thcrcof, then to the cost of refurbishing the Unit, then to applicable charges, then to casts, fees, and charges of the foreclosure action, and then to the payment of the delinquent assessments. Only a receiver may take possession and collect rents under this Section, and a receiver shall not be appointed less than 90 days nfter the delinquency. The exercise by the Association of the foregoing rights shall not affect the priority of preexisting liens on the UniL

Section 17 5 Asscssrr.ents Arc Perunal In addhion to constituting a lien on the Unit. all sums assessed bv the Associatiun char~eable to any L'nit, including all charges pruvided ir; this Article, shall de the pcrvonal obligacon of the Chvner-of the unit when The assessment is made. Suit to recover personal judgment for any delinquent assessments shall he maintainable without foreclosing or waiving the liens securing them.

Section 17.6 Extinwishment of Lien and Personal Liability. A lien for unpaid assessments and the personal liability for payment of assessments i u extinguished unless




proceedings to enforce the lien or collect the debt are instituted within three years after the amount of thc assessments sought to be recovered becomes due.

Section 17.7 Joint and Several Liability. In addition to constituting a lien on the Unit, each assessment shall be the joint and several obligation of the Owner or Owners of the Unit to which the seme arc assessed as of the time the assessment is due. In a voluntary conveyance, the grantee of a Unit shall be jointly and severally liable with the grantor for all unpaid assessments against the grantor up to the timc uf the grantor's conveyance, without prejudice to the grantee's right to recover from the grantor the amounts paid by the grantee therefor. Suit to recover a personal judgment for any delinquent assessment shall be maintainable in any court of competent jurisdiction without foreclosing or waving the lien securing such sums.

Section 17.8 Late Charres and Interert on Delinouent As-ma. The Association may from time to time establish reasonable late charges and n rate of interevt to be charged on all subsequent delinquent assessments or installments thereof. In the absence of another established nonusurious rate, delinquent assessments shall bear interest from the date of delinquency at the maximum rate permitted under RCW 1952.020 on the date on which the assessments became delinquent.

Section 17.9 Recoverv of Attornevs' Fees a n d m s The Association shall be cntitled to recover any costs and reasonable attorneys' fees incurred i n connection with the collection of delinquent assessments, whether or n d such collection activities result in suit being commenced or prosecuted to judgment. In addition, the Association shall be entitled to recover cons and reasonable attorneys' fees if it prevails on appeal and in the enforcement of a pdgment.

Section 17.10 Securitv Dcoosit. An Owner who has been delinquent in paying his monthly assessments for three of the five preceding months may be required by the Board, from time to time, to make and maintain a security deposit not in exces! of three month' estimated monthly assessments, which shall be colleucd and shall be subject to penalties for nonpayment as are other assessments. The deposit shall be held in a separate fund, credited to such Ownrr, and may be resorted to at any time when such Owner is ten days or more delinquent in paying assessments.

Section 17.1 1 -me. The reniedies provided herein are cumulative and the Board may pursue them, and any other remedies which may be available under law although not expressed herein, either concurrently or in any order.

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ART1CI.E 18. ENFORCEMENT OF DECLARATION. BYLAWS AND RULES AND P E G U L A T r n S .

Section 18.1 Riehts of Action. Each Owner, the Board and the Association shall comply strictly with this Declaration, the Bylaws, and the rules and regulationv adopted pursuant thereto, as they may be lawfully amended from time to time, and the decisions of the Board. Failure to comply with any of the foregoing shall be grounds for an action to n w v e r sums duc, damages, and for injunctive relief, or any or all of them, maintainable by the Board on behalf of the Association or by an Owner.

Section 18.2 P 'lure of 8 ar The failure of thc Board in any instance to insist upon the strict wmpliaoce with this Declaration or the Bylaws or ~ l e s and regulations of the Association, or to exercise any right contained in such documents, or to serve any notice or to institute any action, shall not be wnstnied as a waiver or a relinquishment for the liuture of any term, cavenanL condition, or mtriction. The reccipt by the Board of payment of an assessment from an Owner, with knowledge of a breach by the Owner, shall not be a waivcr of the breach. No waivu by the Board of any requirement shall be effective unless expressed in writing and signed for the Board. This Article also extends to the Declarant.

ARTICLE 19. T-ORT AND CONTRACT LIABILITY.

Section 19.1 Declarant Liability. Neither the Association nor any Owner except the Declarant is liable for the Declarant's torts in connection with any part of thc Condominium which the Declarant has the responsibility lo mainmin. Otlierwise, an action alleging a wrong done by the Association must be brought against the Association and not against any Owner or any officer or director of the Assuciation. Ifthe wrong by the Association occurred during any period of Declarant Contml and the Association gives the Declarant reasonable notice of and an opportunity to defend against the action, thc Declarant who then controlled the Association is liable to the Association or to any Owner: (I) for all tort losses not covered by insurance suffered by the Association or that Owner; and (2) for all costs which the Association would not have incurred but for a breach of contract or other wronfil act or omission by the Association. If the Declarant does not defend the action and is determined t o be liablc to the Amciation under this Section, the Declnranl is also liable for all litigation expenses, including reasonable attorneys' fees, incurred by the Association in such defenue. Any statute of limitations affecting the Association's right of action under this Section is tolled until tlie period of Declarant Control terminates. An O w n a is not precluded From bringing an action contemplated by this Section because she is a Unit Owner or a member or officar of the Association.

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Section 19.2 Limitation of Liahilitv fw [Jtilitv Failure. E x u ~ t to the extent covered hy insurance obtained by the Board, neither the Association, the Board, the Managing Agent, nor the Declarant shall be liable for: the failure of any utility or other service to be obtained and paid for by the Board; or for injury or damage to person or property caused by the clcments, or resulting from electricity, water, lain, dust, or sand which may lcak or flow from outside or from any pans of the buildings, or from any of their pipes, drains, conduits, appliances, or equipment, or from any othcr placc; or for inconvenience or discomfort resulting from any action taken to comply with any law, ordinance, or o r d m of a governmental authority. No diminution or abatement of assessments shall be claimed or allowed for any such utility or service failure, or for such injury or damage, or for such inconvenience or discomfort.

Section 19.3 No Personal Liability. So long as a Board member, or Association committee member, or Association oficer, or the Dcclarant or the Managing Agent has acted in good faith, without willful or intentional misconduct, upon the basis of such information as is then possessed by such person, no such person shall bc personally liable to any Owmr, or to any other penon, including the Associakion, for any damage, loss, or prejudice suffered or claimed on account of any act, omission, error, or negligence of such person; provided, that this Section shall not apply wllerc the consequences ofsuch act, omission, error, or negligence is covered by insurance obtained by the Board.

AR'I'ICLE 20. INDEMNIFICATION.

Each Board mcmber, Association wmmittee member. Association office, the Declarant and the Managing Agent shall be indemnified by the Association against all expenscs and liabilities, including attorneys' fees, reasonably incurred by or imposed in connection with any procnding to which such person may be a party, or in which such p m n may bnome involved, by reason of holding or having held such position, or any settlunmt thereof, whether or not such person holds such position at the time such cxpenscs or liabilities are incurred, except to the extent such expenses nnd liabilities are covered by any type of insurance and except in such cases wherein such person is adjudged guilty of willful misfeasance in thc performance of such person's duties; provided, that in the event of a settlement, the indemnification shall apply only when the Board approves such settlement and reimbursement as being for the best interests of the Association.

ARTICLE 2 I. EgURANCE.

Section 21.1 Bnera l Reauirements. Commencing not later than the time of the first conveyance of a Unit to a person other than the Declarank the. Association shall maintain, to




the extent reasonably available, a policy or policies and bonds necessary to provide (a) property insurance; @) commcrcial general liability insurancc; (c) fidelity insurance; (d) worker's compensation insurance to the extent required by applicable laws; (e) directors and officers liability insurance, and (0 such other insurance as the Board deems advisable. Tt1e Board shall review at least annually the adequacy of the Association's insurance coverage. All insurance shall be obtained from insurance carriers that are generally acceptable for similar projects, authorized to do business in the state of Washington, and meets the specific requirements of FNMA, HUD, VA and FHLMC regarding the qualifications of insurance carricrs Notwithstanding any other provisions herein, the Association shall continuously maintain in effcct property, liability and fidclity insurance that meet the insurance requirements for condominium projects established by FNMA, HUD, FHI.MC. and VA so long as any of them is a holdn of r mortgage or Owner of a Unit, except to the extent such coverage is not available or has been waived in writing by them. All such insurance policies shall provide that coverage may not be cancelled or substantially modified (including cancellation for nonpayment of premium) without at lcast 30 days' prior written notice to any and all insureds named therein, including Owners, Mongagees, and designated servicers of Mongagees.

Section212 P r o ~ a v Insurance. The property insurancc shall, at the minimum, provide all risk or special cause of loss wverage in an amount equal to the full replacement ens (lcss a reasonable deductible) of the Common Elements, the Limited Common Elements, thc Units and the equipment, fixtures, improvements in the Units installed by the Declaran~ and personal property o f the Association with an 'Agreed Amount Endorsement" and, if required by FNMA or FHLMC constmction code endorsements, such as a 'Demolition Cost Endorsemmt," a "Contingent Libility from Operation of Building Laws Endorsement," an "Increased Cost of Consmrction Endorsement," and such other endorsements as FNMA or FHLMC deems necessary and arc available. Earthquake and flood insurance, if available, is optional. The policy shall provide a separate loss payable endorsement in favor of the Mortgagee of each Unit. The Association's policy may, in t 1 ~ discretion of the Board, include improvements and betterments installed in the Units by ttu! Owners. The Association or insurance trustee, if any, shall hold insurance proceeds in trust for the Owners and their Mortgagees, as their interests may appear. Each Owner and the Owner's Mortgagee, if any, shall be beneficiaries of the policy in accordance with their interest in the Common Elements, except that prior to the creation of Units in a Subsequent Phase or Subphase, the Declaranf as the beneficial owner of d l buildings on the Subsequent Subphase Propeny or thr Additional Property, shall be responsible for obtaining insurance for such buildings until Assessments have commenced with respecl to the Units created on that property or, if it is obtained by the Association, paying a pro rata share of the ws t of such insurance based on the formula for Common Expense Liability of the Units. Certificates of insurance shall be issued to each Owner and Mortga~cc upon r q u S t .


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Section 21.3 Commercial Gencral Liabilitv Insu raw. The liability insurance coverage shall insure the Board, the Association, the Owners, the Declarant. and the Managing Agent, and cover all of the Common Elements in the Condominium with a "Severability of Interest Endorsement" or equivalent coverage which would preclude the insurer from denying the claim of an Owner because of the negligent acts of the Association or of another Owner, and shall cover liability of the insureds for property damage and bodily injury and death of persons arising out of the operation, maintenance, and use of the Common Elements, host liquor liability, employers' liability insurance, automobile liability insurance, and such other risks as are astarnarily covered with respect to midential condominium projects of similar construction, location and use. The limits of liability shall be in amounts generally required by Mortgagees for projects of similar construction, location and use but shall be at least 51,000,000 combined single limit for bodily injury and property damage per occurrence and 52,000,000 gcneral aggregate.

Section 21.4 Insurance Trustee: Power of Attorney. The named insured u n d a the policim referred to in Seaions 21.2 and 21.3 shall be the Association. as trustee for each of the Owners in accordance with their respective interests in the Common Elements. The insurance proceeds may be made payable to any trustee with which the Association enters into an insurance trust agreement or any successor uustee, who shall have exclusive authority to negotiate losses under the policies. Subject to the provisions of Section 21.8, the proceeds must be disbursed first for lhe repair or restoration of the damaged property, and Unit Owners and lienholders are not entitled lo receive payment of any poriion of the proceeds unless there is a surplus of proceeds afler the properly has been completely repaired or resturcd or the Condominium is terminated. Each Owner appoints the Association, or any insurance trustee or successor trustee designated by the Association, as attorney-in-fact for the purpose of purchasing and maintaining such insurance, including the collection and appropriate disposition of the proceeds thereof, the negotiation of losses and execution of releases of liability, tlie execution of all documents and the perlormance of all other aUs necessary to accomplish such purposes.

Section21.S Additional Policv Provisions. The insurance obtained pursuant to Sections 21.2 and 21.3 shall contain the folluwing provieions and limitations:

21.5.1 Each Unit Owner is an insured person under the policy with respect to liability arising out of the Owner's interest in thc Common Elements or membership in the Association.

21.5.2 Such policies shall not provide for wniribution by or assessment against Mortgagees or beeome a lien on the property superior to the lien of a first mortgage.

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215.3 If, at the time ofthe lo= under the policy, there is other insurance in the name of the Unit Owner cavering the same risk covered by the policy, the Association's policy pmvides primary insurance.

21.5.4 Coverage shall not be prejudiced by (a) any act, omission o r neglect of the Owncrs of Units when such act or neglect is not within the scope of the Owner's authority on behalf of the Association, or @) failure of the Association to comply with any warranty or condition with regard to any portion of the premises over which the Association has no control.

215.5 A waiver of subrogation by the insurer as to any and all claims against the Association, the Owner of any Unit, andlor their respective agents, members of thc Owner's household, employees, or lessees, and of any defenses based upon w-insurance or upon invalidity arising from the a n s ofthe insured.

21.5.6 A standard mortgagee clause which shall:

(a) Providc that any reference to a mortgagee in the policy shall mean and include all Mortgagees of any Unit or Unit lease or sublease in their respective nrder uf preference, whether or not named th~min;

@)Provide that such insurance as to the interest of any Mortgagee shall not be invalidatul by any a n or neglect of the Board or Owners or any persons under any of them;

(c) Waive any provision invalidating such mongage clause by reason of the failure of any Mortgagee to notify the insurer of any hazardous use or vacancy, any requiretuent that the Mortgagee pay any premium thereon, and an^ contribution clause; and

(d) Provide that, without arecling any proteaion atl'orded by such mortgagee clause, any proceeds payable under such policy shall be payable to the Association or the insurance trustee.

Section21.6 Fidelitv In-. The required fidelity insurance shall atlord coverage to protecl against dishonest ans on the part of officers, directors, trustees, and employees of the Association and all other persons who handle or am responsible for handling funds of or administered by, the Association. The Mu~aging Agent shall maintain fidelity insurance for its officers, employees, and agents who handle or who are responsible for handling funds of, or funds administered by the Association. All such fidelity insurance shall name the Association as an obligee and shall be not less than the estimated maximum of


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funds, including reserve funds, in custody of the Association at any time during the t a m of each policy, but, in no event, shall the aggregate amount of insurance be l a s than three months' aggregate assessments. The policy shall contain waivers o f any defense based upon the exclusion ofpersons who serve without wmpensation from any definition of "employee" or similar expression.

Section 21.7 Qwners' Individual Insurance. An insurance policy issued to the Association does not prevent an Owner From obtaining insurance for the Owner's own benefit.

Section 21.8 Use of In -Proceeds. Any portion of the Condominium for which insurance is required under this Article which is damaged or destroyed shall be repaired or replaced promptly by the Association pursuant to Article22 unless: (a) the Condominium is terminated, @)repair or replacement would be illegal under any state or local health or safety statute or ordinance; or (c) Owners holding at least 80% of the votes in the Association, including every Owner of a Unit or Limited Common Element which wiU not be r ebu i l~ and Owners other than the Declarant holding at least 80% of the votes in the Association excluding votes held by the Declarant vote not to h i l d . The wvl of repair or replacement in excess of insurance proceeds and reserves is a Common Expense. If all of the damwed or destroyed portions of the Condominium are not repaired or replaced: (I) The insurance proceeds attributable to the damaged Common Elements shall be used to restore the damaged area to a condition wmpatible with the remainder of the Condominium; (ii) the insurance proceeds attributable to Units, Limited Common Elements or improvements on the Suhsequent Subphase Propcrly which arc not rrbuilt shall be distributed to the Owners of those Units, the Owncrs of the Units to which those Limited Common Elements are docated or the Declarant with respect to improvements on the Subsequent Subphase Propeny, or to lienholders, as their interests may appear; and (iii) the remainder of the proceeds shall be distributed to all thc Unit Owners or lienholders, as their interests may appear, in proportion to the interest in Common Elements of each Unil. If the Unit Owncrs vote not to rebuild any Unit, that Unit's Allocated Interests are automatically reallomled upon the vote as if the Unit had been condemned under Article 23, and the Association promptly shall prepare, execute, and record an amendment to this Declaration retlecting the reallocations. Notwithstanding the provisions of this Section, Article 27 governs the distributiun of insurance proceeds if the Condominium is terminated.

ARTICLE 22. DAMAGE AND REPAIR OR DAMAGE TO PROPERTY.

Section 22.1 Initial Board Determination. In the event of damage to any Common Element or to any portion of a Unit or its Limited Common Elements, equipment or appliances cavered by the Association's insurance policy, the Board shall promptly, and in all


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events within 30 days after the date of damage, make the following determinations with respect thereto, employing such advice as the Board deems advisable:

22.1.1 The nature and extent of the damage, together with an inventory of the improvements and propwty directly affected thereby.

22.1.2 A rcasonably reliable estimate of the cost to repair the damage, which estimate shall, if rcasonably practicable, be based upon two or more firm bids obtained from rcsponsible contractors.

22.1.3 The expected insurance p r o c d q if any. to be available kom insurance covering the loss based on the amount paid or initially offered by the insurer.

22.1.4 The amount, if any, by which the estimated cost of repair exceeds the expected insurance pruceeds, and the amount of the Assessments that would have to be made against each Unit if the excess cost were to be paid as a Common Expense and assessed against all the Units in proportion to their Common Expense Liabilities.

Section 22.2 Notice olDamp@. The Bonrd shall promptly, and in all events within 30 days after the date of damage, shall file a proof of loss statement with the insurance company if the loss is covered by insurance and ahide by all terms a d conditions of its insurance policies. unless the Board determines it would not be in the best interest of the Association to file a proof uf loss. The Roard shall then provide each Ownu and each holder of a first mortgage on a Unit with awritten notice describing the damagc and summarizing the initial Board determinations made under Section 22.1. If the Board fails to do so within the 30-day period, any Owner or mongagee may make the determinations rcquired under Section 22.1 and give the notice requircd under this Section,

Section 22.3 I r k . f n' i As used in this Article:

22.3.1 shall mean all kinds of damage, whether of slight degree or total destruction.

22 3.2 W a n t i a l Damane shall mean that in the judgment of a majority of the Board the estimated asssssment determined under SCction 22.1.4 for any one Unit exceeds ten percent of (he &ll, fair market valuc of the Unit before the damage occurred, as determined by the then current assessment for the purpose of real estate taxation.

22.3.3 *r shall mean restoring the improvements to substantially the condition they were in before they were damaged, with each Unit and the Common Elements



Branch :nS ,Use r :ST32 Station Id :ZIWF

and having substantially the same boundaries as before. Modifications to conform to applicable governmental ruler and regulations or available means of consmction may be made

22.3.4 Emcrrcncv Work shall mean work that the Board deems reasonably necessary to avoid further damage or substantial diminution in value to the improvements and to protect the Owners from liability from the condition of the site.

Section 22.4 Execution @f Repairs.

22.4.1 The Board shall promptly repair the damage and uw the available insurance proceeds therefor as provided in Section 21.8. If the cost of repair exceeds the available insurance proceeds the Board shall impose an Assessment against all Units in proportion to their Common Expense Liabilities in an amount sufficient tn pay the excess costs.

22.4.2 Thc Board shall have the authority to employ architecu and engineers, advertise for bids, let conhadsto contractors and others, and take such other action as is reasonably necessary to make thc repairs. Contracis for the repair work shall be awarded when the Board, by means of insurance proceeds and sufficient Assessments, has provided for paying the cast. The Board may authorize the insurance carrier to make the repairs if the Board is satisfied that the work will be done satisfactorily, and if such authorization does not contravene any insurance lmst agreement or requirement of law.

22.4.3 The Board may enter into a written agreement with a reputable financial institution or trust or escrow company that the institution or company shall act as an insurance ttustee to adjust and settle any claim for casualty loss in excess of $50,000, or for the institution or company to collect the insurance proceeds and carry out the provisions of rhis Article,

Section22.5 Damage Not Substantial. If the damage as determined under Subsection is not substantial, thc provisions of this Section shall apply.

22.5 I Either thc Board or the requisite number of Owners, within 15 days aRer the notice required under Section 22.2 has been given, may but shall not be required to, call a special Owners' meeting in accordance with Section 13.4 and the Bylaws to decide whether to repair the damage.

22.5.2 Except for emergency work, no repairs shall be commenced until aficr the IS-day period and until aRer the conclusion of the special meeting if such a special meeting is called within the 15 days.

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22.5.3 A decision to not repair or rebuild may be made in accordance with Section 21.8.

Section 22.6 -. If the damage determined under Section 22.3.2 is substantial, the provisions of this Section shall apply.

22.61 The Board shall promptly, and in all events within 30 days after the date of damage, calf a special Owners' meeting to consider repairing the damage If the Board fiils lo do so within 30 days, then notwithstanding the provisions of Section 13.4 and the Bylaws, any Owner or first mortgagee of a Unit may call and conduct the meeting.

22.6.2 Except for emergency work, no rcpairs shall be commenced until the conclusion of the special Owners' meeting.

22.6.3 At the special meeting, the following consent rquiren~ents will apply.

(a) The Owners shall be deemed to have elected to repair the damage in accordance with the original plan unless the Owners of at least 80% o l the total voting power o i the Condominium other than that held by the Declarant and the Declarant if it is the Owner of a Unit or has the right to create Units pursuant to Article 4, including every Owner o r a Unit which will not be rebuilt and every Owner of a Unit to which a Limited Common Element which will not be rebuilt is allocated, have given their written consent not to repair the damagc.

@) The un~nimous consent of all Owners will be required to elcct to rebuild in accordance with a plan that is different fromthe original plan.

(c) In addition to the cansent by the Owners specifid above. any election not to repair the damage or not to rebuild substantially in accordance with the nriginal plan will require thc approval of eligible holders of first mortgages on Units that have at least 51% of the votes subject to eligible holdn mortgages.

(d) Failure to conduct the special meeting provided for under Section 22.6.1 within 90 days after the date of damage shall be deemed a unanimous decision to repair the damage in accordance with the original plan.

Section 22.7 Effect of Decision Not to Repair. In the event of a decision under either Section 22.5.3 or 22.6.3 not to rcpair the damage, the Board may nevertheless expend so much of the insurance proceeds and common funds as the Board deems reasonably

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necessary for emergency work (which emergency work may include but is not necessarily limited to removal of the damaged improvements and clearing, filling, and grading the land), and the remaining funds, if any, and the property shall thereafter be held and distributed as provided in Section 21.8.

ARTICLE 23. CONDEMNATION

Section 23.1 Conseauenccs of Condemnation-. If any Unit or portion thereof or the Common Elements or Limited Common Elements or any portion thereof is made t k subject matter of any condemna~iotr or eminent domain procceding or is otherwise sought to be acquired by a condemning authority, notice of the proceeding or proposed acquisition shall promptly be given to each Owner and to each holder o f a first mortgage and the provisions of this Article shall apply.

Section 23.2 Power of A=. Ench Owner appoints the Association as attorney-in-fact for the purpose of representing thc Owners in condemnation proceedings and negotiations, settlements and agreements with the condemning authority for acquisition of Common Elements or any pan thereof, from the condemning authority. The Roard may appoint a tmstee to act on behalf of tbc Owners in carrying out the foregoing functions in lieu of the Aswciation. ShouId the Association not ad , based on their right to act pursuant to this Section, the affectcd Owners may individually orjointly act on their own behalf.

Section 23.3 Condemnatiw of a ild. If a Unit is acquired by condemnation, nr if part of a Unit is acquired by condemnation leaving the Unit Owner with a remnant of a Unit which may not practically or lawfully bc used for any purpose pcmined by this Declaration, the award must wmpensate the Owner for the Owner's Unit and its appurtenant interest in the Common Elements, whether or not any Common Elements are acquired. The proceeds from the condemnation of a Unit shaIl be paid to the Owner or lienholder of the Unit as their interests may appear. Upon acquisition, unless thc decree otherwise provides, that Unit's Allocated lnterests are automatically reallocated to the remaining Units in proportion to the respective Allocated Interests of those Units before the taking, and the Association shall promptly prepare, execute. and rewrd an amendment to this Declaration reflecting the reallocations. Any remnant of a Unit remnining after pan of a Unit is taken undn this Section is thereafter a Common Element.

Section 23.4 Condemnation of Part of a Unit. Except as provided in Section 23.3, if part of a Unit is acquircd by condemnation, the award must compensate the Unit Owner for the reduction in value of the Unit and its appurtenant interest in thc Common Elements, whcther or not any Common Elements are acquired. The procesds fiom the condemnation awarded to the Unit Owner shall be paid to the Owner or lienholden of the Unit, as their




interests may appear. Upon acquisition, unless the decree othenvise provides: (a) That Unit's Allocated Interests arc reduced in propomon to the reduction in the size of the Unit; and (b) the portion of the Allocated lnterests divested from the partially acquired Unit are automatically reallocated to that Unit and the remaining Units in proportion to the respective Allocated Interests of those Units before the taking, with the partially acquired Unit participating in the reallocation on the bnsis of its reduced Allocated Interests.

Section 23.5 b d e m n a t i o n of Common &ent rn Limited Common Elemen1 If pan of the Common Elements is acquired by condemnation the portion of the award attributable to the Common Elements taken shall be paid to the Owners based on their respective interests in the Common Elements, or to lienholders, as their interests may appcar. Any portion of the award attributable to the acquisition of a Limited Common Element must be equally divided among the Owncm of the Unitr to which that Limited Common Element was allocated at the time of the acquisition, or to lienholders, as their interests may appear. If the Board determines that a particular Owner's interest in the Common Elements diminished with respect to other Owners, by the acquisition of a Common Element, the Declaration may be amended tu adjust that Owner'y Common Expense Liability allocation, or to remove the allocation of a Limited Common Element to that Owner's Unit, as the case may be.

Section 23 6 Rcconslruction and Repair. Any reconstruction and repair necessitated by condemnation shall be governed by the procedures specitied in Article 22.

ARTICLE 24. EASEMENTS

Section 24.1 In General. Each Unit has an easement in and through each other Unit and the Common and Limited Common Elements for d l support elements and utility, wiring, heat, and service elements, and for reasonable access thereto, as required to effectuate and continue propcr operation of the Condominium.

Section 24.2 Encroachments. To the extent not providcd by the definition of "Unit" in the Declaration and in the Condominium Act, each Unit and all Cummon and Limited Common Elements are hereby declared to have an easement mu all adjoining Units and Common and Limited Common Elements for the purposc of accommodating any present or future encroachment as a result of engineering errors, mnstruction, reconstruction, repairs settlement, shifting, or movement of any portion of the property, or any other similar cause, and any encroachment due to building overhang or projection. There shall be valid easements for the maintenance of the encroaching Units and Common and Limited Common Elements so lung as the encroachments shall exist, and the rights and obligations of Owners shall not be altered in any m y by the encroachment; provided, however, thal in no event shall a valid easement for encroachment be created in favor of P Unit if the encroachment was caused by




the willful act with full knowledge of the Owner. The encroachments described in this Section shall not be construed to be encumbrances affecting the marketability of title to any Unit.

Section 24.3 Easements Reserved bv the Declarant. The Declarant reserves an access easement over, across, and through the Common Elements of the Condominium for the purpose of completing any unfinished Units or other improvements, exhibiting and preparing Units for sale, making rcpairs required pursuant tc any conwet of sale, and discharging the Declarant's obligations or exercising Development Rights or Special Declarant Rights.

Section 24.4 Utilitv Easements Granted bv the D&m& The Deciarant grants to each company or municipality providing utility sewices to the Condominium or to the Owners of Units in the Condominium an easement for the installation, connmdion, maintenance, repair and reconstruction of all utilities serving the Condominium or the Owners, inchdin& without limitation, such utilities services as water, sanitary sewer, storm scwer, electricity, cable tclcvision and telephone, and an easement for access over and under 1l1e madways and Common Elements of the Condominium to the utility service facilities.

ARTlCLE 25. PROCLUURES.FOR SUBDIVIDING OR ALTHUNG UNITS

Section25.1 Submission gfPrnposal to Subdivide Unit. No Unit or Units shall be subdivided eithcr by agreement or legal proceedings, except as provided in this Article An Owner may propose subdividing 0 Unit or Units by submitting the proposal in writing to the Board and to all other Owners and mortgagees of the Unit to be subdivided or combined Such proposal to subdivide must also be given to every first mortgagee of any Unit in the Condominium. The proposal must include complete plans and specifications for accomplishing the subdivision and pruposed amendments of this Declaration and the Survey Map and Plans which amendments shall be executed by thc Owner of the Unit to be subdivided upon approval pursuant to Sation 25.2, and which amendments assign an identifying number to each Unit created, and reallocate the allocated interests and liabilities formerly allocated to the subdivided Unit to the new Units in any reasonable manner prescribed by the Owner of the subdivided Unit. The Oaner of the Unit to be subdivided shall bear all costs of the subdivision

Section 25.2 Approval Resuired ror Subd-. A proposal that contemplates subdivision of a Unit will be accepted only if approved in writing by all Owners and mortgagees of the Unit or Units to be subdivided, the Board and 51% of Eligible Mortgagees.

Section 25.3 & A i m . No Unit may be altered in any way except in accordance with this Article. An Owner may makc any improvements or alterations to the




Owner's Unit that do not affect the structural integrity or mechanical or electrical systems or lessen the support of any portion of the Condominium but may nut change the flooring in any portion of the Unit which is directly above another Unit from carpeting to hard surface flooring without the prior wrincn approval of the Board. An Owner may not change the appearance of the Common Elcments or the exterior appearance of a Unit without permissinn of the Association pursuant to the procedures of Section 25.5.

Section 25.4 Uoin in r? Units. After acquiring an adjoining Unit or an adjoining part of any adjoining Unit, an Owner may, with approval of the Board pursuant to Section 25.5, remove or alter any intervening partition or create apertures t h e r e i ~ even if the partition in whole or in part is a Common Element, if those a ~ t s do not adversely affect the structural integrity or mechanical or electrical systems or lessen the support of any portion of the Condominium. Removal of partitions or creation of apertures under this subsection is not a relocation of boundaries. The Owner's proposal lo act under this Section shall be submitted to the Board and shall include the plans nnd specifications for the proposed rcmoval or alteration.

Section25.5 Substantial Alteratinn. A proposal that contemplates substantial alteration of one or more Units is subject to approval by the Board. The Board shall approve an Owner's request under this Section within 30 days, unless the proposcd alteration does not comply with Section 25.4 or impairs the structural integrity or mechanical or electrica! systems in the Condominium. The failure of the Board to act upon a requem within such period shall bc deemed approval thereor

Section 25.6 procedure After Ao~roval. Upon approva1 of a proposal under this Article, the Owner making it may proceed according to the proposed plans and specifications; provided that the Board may in its discretion require that the Board administer the work or that provisions for the proteaion of aher Units or Common Elementg or that reasonable deadlines for completion of the work be inserted in the contracts for the work. The changes in the Survey Map Plans and Declaration shall he placed of record as amendments thereto.

Section 25.7 Relocation of B o u n d a r i e s - A d i o i n m . The hundaries between adjoining Units may only be relocated by an amendment to the Declaration, pursuant to Articla 26. upon application to the Board by the Owners of those Units. If the Ownen of the adjoining Units hnve specified a reallocation between their Units of their allocated interests, the application must state the proposed reallocations. Unless the Board determines within 30 days, that the reallocations are unreasonable, the Association shall prepare an amendment that identities the Units involved, states the reallocations, is executed by the Unit Owners, contains words of wnveyancc between them, and is recorded in the name of the grantor and the grantcc. The Association shall obtain and r a o r d survey maps or plans complying with the requirements of RCW 64 34.232(4) necessary to show the altered boundaries between




adjoining Units and their dimensions and identifying numbcru. The Owner or Owners benefited by a reallocation of Unit boundaries shall bear all costs associated therewith in proportion to the relative benefits to each suchUnil as determined by the Board.

ARTICLE 26. AMENDMENT OF DECLUATION SURVEY MAP AND PLANS. ARTICLES OR BYLAWS.

Section 26.1 P r o c e h , Except in caves of amendments that may be executed by the Declarant undw the Declaration or the Condominium Act, the Declaration, the Sirrvey Map and Plans. the Articles and the Bylaws may be amended only by vole or agreement of the Owners, as specified in this h i c k . An Owner may propose amendments to this Declaration or the Survey Map and Plans, the Articles or the Bylaws to the Board. A majority of the members of the Board may cause a proposed amendment to be submitted to the members of thc Association for their consideration. If an amendment is proposed by Owners with 20% or more of the votes in the Association, then, irrespedive of whether the Board concurs in the proposed amendment, it shall be submitted to the members of the Association for their coosideration at their next regular or special meeting for which timely notice must be given. Notice of a meeting al which an amendment is to be considered shall include the text of the proposed amendment. Amendments may be adopted at a meeting of the Association or by wriltcn wnsent of the requisite number of persons entitled to vote, after ootica has becn gimn to all pcrrons (including Eligible Mortgagees) entitled to receive notices. Upon the adoption of an amendment and the obtaining of any necessary consents of Eligible Mortgagees as provided below, amendment to the Declaration or the Survey Map and Plans will become effective when it is recarded or filed in the real property records in the county in which the Condominium is located. The amendment shall be indexed in the name of the Condominium and shall contain a cross-rererence by recording number to the Declaration and each previously recorded amendment therc20. Such amendmenu shall be prepared, executed, recorded and certified on behalf of the Association by any officer of the Association designated for that purpose or, in the absence of designation, by the president of the Association. No action to challenge thevalidity of an amendment adopted by the Association pursuant to this Article may be brought more than one year after the amendment is rewrded. An amendment to the Articles shall be effective upon filing the amendment with the Secretary of State. An amendment to the Bylaws shall be effective upon adoption.

Section 26.2 m e e s of Consent Reauired. Except as provided in Article 4 in connection with the exercise of Development Rights by the Declarant. Article 9 in connection with the allocation of parking spaces or in Articles 22 and 23 in the csse of damage or condemnation of the property, the percentages of consent of Owners and mortgagees required for adoption of amendments to the Declaration, the Survey Map and Plans, the Articles and the Bylaws are as follows:




26.2.1 The wnsent of Owners liolding at least 67% of the votes in the Association. including Owners other than the Declarant holding at least 67% of the votes in the Association excluding votes held by the Declarant, and the wnsent ofEligible Mongagees that have at least 5 1% of the votes of Units subject to Eligible Mortgagees shall be required to materially amend any provisions of the Declaration, the Survey Map and Plans, the Articles or the Bylaws, or to add any material provisions thereto, which establish, provide for, govern, or regulate any of the following: (a)voting rights; @)assessments, aswssment liens, or subordination of such liens; (c) reserves for maintenance. repair, or replacement of the Cummon Elements; (d) responsibility for maintenance and repair of any portion of the Condominium; (e) righu to use Common Elements and Limited Cnmmon Elements; (f) reallocation of interests in Common Elements or Limited Common Elements or rights to their use; (g) redefinition of any Unit boundaries; (h) convertibility of Units into Common Elements or Common Elements into Units; 0) expansion or contradion of the Condominium or the addition, annexation orwithdrawal of property to or from thc Condominium; (j) hazard or fidelity insurance required; (k) imposition uf any restrictinns on leasing of Units; (1) imposition of any restriction on the right of an Owner to seU or transfer a Unit; (m) establishment OF self-management of the Condominium after professional management has been requircd by FNh?A, FHLMC, or other similar agency or corporation or by an Eligible Mortgagee; (n) restoration or repair (afler damage or partial condemnation) in a manner other than specified in the Declaration or S w e y Map and Plans; or (0) any provisions which are for the express benefit of holders of first mortgages~

26.2.2 An amendment that creates or increases Development Rights or Special Declarant Rights, increases the number of Units (other than an amendment creating Units in R Subsequent Pliase or Subphase), changes the boundaries of any Unit, the Allocated Interests of a Unit (except in connection with the creation of new Units in a Subsequent Phnsc or Subphase), or the uses to which any Unit is restricted shall require the vote or agreement of the Owner of each Unit particularly affected and the Owners other than the Declarant holding a t least 90% orthe votes in the Association excluding votes held by the Declarant.

26.2.3 All other amendments shall be adopted if consented to by 67% of the Owners, including Owners uther than the Declarant holding at lcavt 67% of the votes in the Association excluding votes held by the Dcclarant.

26.2.4 An Eligible Mortgagee who receives a wrinen request to consent to an amendment who does not deliver or post to the requesting party a negative response within 30 days shall be deemed to have consented to such request.

26.2.5 If the Condominium has received a project approval from the VA, the approval of the VA shall be required for any amendment to the Declamtion, Articles, Bylnws




ur Survey Map and Plans For which Owner approval is requircd adopted prior to the Transition Date.

Section26.3 i it . . No amendment may restrict. eliminate, or otherwise modify any Development Right or Special Declarant Right provided in the Declaration without the consent of the Declarant and any mortgagee of recard with a security interest in the Development Right or Special 1)eclarant Right or in any real properly subject thereto, excluding Mortgagees of Units owned by persons othcr lhan the Declarant

ARTICLE 27. TERMMATION OF CONDOMNNM

Section27.1 ActionReauired. Except as provided in Articles 4, 22 and 23, the Condominium may he terminated only by agreement of Owners of Units to which at lead 80% of the votes in the Association are allocated and with the consent of EIigible Mortgagees of Units to which at least 67% of the votes in the Association are allocated and in accordance with the Condominium Act. An Eligible Mortgagee who receiver a wriitcn request to ronsent to termination whu does not deliver or post to the requesting party a negative response within 30 days shall be deemed to have consented to sucl~ request, provided the request was delivered by certified or registered mail, return rcceipt requested.

Section 27.2 Condominium Act &verns. The provisions of the Condominium Act relating to termination of a condominium contained in RCW 64.34.268, as it may be amended, shall govern the termination of the Condominium, including, but not limited to, the disposition ofthe real property in the Condominium and the distribution of proceeds from the sale of thnt r ed property.

ARTICLE 28. N-CES

Section 28.1 Tpw and Delivery of Notice. Unless provided otherwise in this Declaration, all notices given under the provisions of this Declaration or the Bylaws or ~ l e s or regulations of the Association shall be in writing and may be delivered either personally or by mail. If delivery is made by mail, the notice shall be deemed to have been delivered u p n being dqosited in the United States mail, first class, poslage prepaid, addressed to the person entitled to such notice at the most recent address known to the Board. Notice to the Owner of any Unit shall bc sufficient if mailed tu the Unit if no dhcr mailing address has been given to the Board. Mailing addresses may be changed by notice in writing to the Board. Notices to the Board shaIl be given to the Declarant until the Transition Date, and thereafter shall be given to the president or secretary ofthe Association.


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Section 28.2 Notices to Elieible Mortmees. An Eligible Mortgagee is a Mortgagee that has filed with the secretary of the Board a written request that it be given copies of the notices listed below. The request must state the name and address of the Eligible Mortgagee and the Identifying Number or address of the Unit on which it has (or insures or guarantees) a Mongage. Until such time thereaner that the Eligible Mortgagee withdraws the request or the mortgage held, inwred or guaranteed by the Eligible Mortgagee is satisfied, the Board shall send to the Eligible Mortgagee timely written notice of (a) any proposed amendment of the Declaration or Survey Map and Plans effecting a change in (T) the boundaries of any Unif, (ii)the exclusive easement rights, i l any, appertaining to any Unit, (iii) the interest in the Common Elements or the liability for Common Expenses of any Unit. (iv) the number of votes in thc Association allocated to any Unit, or (v) the purposes to which a Unit or the Common Elements are restricted; @)any proposed termination of condominium StaNS, transfer of any part of the Common Elements, or termination of professional management of the Condominium; (c) any condemnation loss or casualty loss that affects a material portion of the Condominium or that affecu any Unit on d i c h an Eligible Mortgagee has a first mortgage; (d) any delinquency which has continued for 60 days in the payment of assessments or charges owed by an Owner of a Unit on which an Eligible Mortgagee had s mortgage; (e) any lapse, cancellation, or material modification of any insurance policy maintained by the Association pursuant to Article 21; (0 any proposed union that would require the consent of a specifid percentage of Eligible Mortgagees pursuant to Articles 25, 26, or 27.

ARTlCLE 29. SyERABILlTY

The provisions of this k l a d o n shall be independent and severable, and the uncnforceahility nf any one provision shall not alTect the enforceability of any other provision, if the remaining provision or provisions comply with the Condominium Act.

ARTICLE 30. C T N E W.

Tbis Declaration shall take effect upon recording

ARTICLE 3 1. REFERENCE TO SURVEY MAP AND PLANS

The Survey Map and Plans were filed with the Auditor of Snohomish County, Washington, simultanmsly with the recording of this Declaration under File No . in Volume - of Conciominiums, pages - through -. 9807 14 5b02




ARTICLE 32. ASSIGNMENT BY DECLARANT

The Declarant reserves the right to assign, eansfer, sell, lease, or rent all or a portion of the property then owned by it and reserves the right to assign all or any of its rights, duties, and obligations created under this Declaration.

DATED: Ju\h lo , I ~ S % DECLARANT

POSSESSION VIEW, L.L.C., a Washington

Its t4nb.,*,~* wvw\ ./ 4 0

STATE OF WASIIINGTON 1 1 s.

COUNTY OF KING 1

1 certify that I know or have satisfactory evidence that &r f l . ff%VsM/is the person who appeared before me, and said person acknowledged that said penan signed this instrument, on oath sated that said person was authorized to execute the instrument and rcknowlcdged it as hew- of POSSESSION VIEW, L.L.C.. a Washington limited liabilily company, to be the free and voluntary - aO of such corporation for the uses and purposes mentio ned in the ins

Dated this L-, day o f d

E S E e @&WVES (Leniblv Print or Stamo Name of Notaw) . - , ' - - - , ,

& N o t w oublic in and for the state of WashinPton - . SEATLE,

My appointment expires - .

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SCHEDULE A

THE VILLAS AT HARBOUR POINTE, A CONDOMINIUM

Descri~tion of Land in Condominium

VILLA MONTE

I.OT 4 OF SHORT PLAT RECORDED UNDER SNOHOMISH COUNTY RECORDING NUMBER 9707240555, AS DELINEATED ON S U R W RECORDED UNDER SNOHOWSH COUNTY RECORDNG NUMBER 9707245002 RFCORDS OF S h ' O 1 i O ~ H COUNTY. WASlmGTON;

TOGETHER WITH TRACT 500. POSSESSION POINT VIEW 1, ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 59, OF PLATS, PAGES 57 THROUGII 60, INCLUSIVE, RECORDS OF SNOHOMlSH COUNTY, WASHINGTON;

SITUATE IN THE COUNTY OF SNOIIOMISY STATE OF WASHINGTON.

-TION OF LAND WUBPHASE la;

THAT PORTION OF LOT^, crry OF MLWLTEO SHORT PLAT NO. ~ ~ 9 6 4 3 RECORDED UNDER RECORDING NO. 9707240555 RECORDS OF SNOHOMISH COUNTY, WASHlNGTON DESCRIBED AS FOLLOWS.

COMMENCING AT THE NORTHWEST CORNER OF SAID LOT4; THENCE S00°25'41'W, ALONG THE WEST LINE OF SAlD LOT 4, A DISTANCE OF 525.65 FEET TO THE P O N OF BEGINNING OF THE IEREIN DESCRlBED TRACT; THENCE CONTlh'UING S00°25'41'W ALONG SAID WEST LINE, 216.00 FEET TO A POINT OF THE NORTHEASTERLY RIGE3T-OF-WAY MARGIN OF HARBOR HEIGHTS PARKWAY, SAID POINT BEING ON THE ARC OF A 365.00 FOOT RADIUS CURVE TO THE RIGHT, THE CENTER OF WHICH BEARS S34°16'26W; THENCE SOUTHEASTERLY ALONG SAID CURVE AND MARGIN, THROUGH A CENTRAL ANGLE OF 2677'00". A DISTANCE OF 168.50 FEET; THENCE LEAVING SAID MARGIN, N6V43'26"E B5.W FEET; THENCE N08°45'M)"E 217.00 FEET; THENCE N62"43'00"E 120.00 ET. THENCE N2S001'00'W 106.00 FEET; THENCE S65°05'00'W 117.00 FEET; THENCE N24"55'00"W 25.00 FEET; THENCE S6SnO5'OO'W 102.W FEET; THENCE N8Be42'13"W 71.07 FEET TO THEPOINT OF BEGINNING.



Branch :TYS,User :ST32

SCHEDULE B

Station Id :ZHVF

THE VILLAS AT HARBOURPOINTE, A CONDOMINlUM

Descriutmn of Subseoucnt SuMa.se Pm~erty

PARCEL B: W T 4 OF SHORT PLAT RECORDED UNDER SNOHOMlSH COUNTY RECORDING NLTMBER 9707240555, AS DELINEATED ON SURVEY RECORDED UNDER SNOHOMISH C O W RECORDING NUMBER 9707245002, RECORDS OF SNOHOMISH C O W , WASHINGTON.

PARCEL D: TRACT 500, POSSESSION POINT VIEW 1, ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME59 OF PLATS, PAGES 57 THROUGH 60, INCLUSIVE, RECORDS OF SNOHOMISH C O m , WASHINGTON,

EXCEPT THAT PORTION THEREOF DESCRIBED AS FOLLOWS:

THAT PORTION OF LOT4, CITY OF MUKILTEO SHORT PLAT NO. SP96d3 RECORDED UNDER RECORDING NO. 9707240555 RECORDS OF SNOHOMISH COUNTY, WASHINGTONDESCRIBED AS FOLLOWS:

COMMENCING AT THE NORTHWEST CORNER OF SAID LOT4: THENCE SW02S'41'W, ALONG TlIE W I S I LINE OF SAID LOT 4, A DIST.4NCE OF 525 65 FEET TO 'IIE P o m T OF B E G I ~ G OF -im HEREIN DES( :R~ED TRACT. T I ~ C E - - -~ - -

CONTINUING S00°25'41'W ALONG SAID WEST LINE, 216.00 FEET TO A PO& OF THE NORTIEASTERLY RIGHT-OF-WAY MARGIN OF HARBOR HEIGHTS PARKWAY, SAID POINT BETNG ON TIE ARC OF A 365.00 FOOT RADIUS CURVE TO THE KICiHT, THE CENTER OF WHICH BEARS S34"16'26W; TIlENCE SOUTHEASTERLY ALONG SAID CURVE AND MARGIN, THROUGH A CENTRAL ANGLE OF 26?27'00", A DISTANCE OF 168.50 FEET; THENCE LEAVING SAID MARGIN, N60°43'26"E 85.00 FElT; THENCE N08415'00"E 217.00 FEET; THENCE NG2"43'0O"E 120.00 Ff33; THENCE N2SD01'W'W 106.00 FEET; THENCE S6Sm05'00'W 117.00 FEET; THENCE N24"55'00"W 25.00 FEET; THENCE S65'05'WW 102.00 FEET, THENCE N8Sa42'13'W 71.07 FEET TO THEPOINT OF BEGINNING;

SITUATE IN THE COUNTY OF SNOHOMISY STATE OF WASHINGTON.



Branch :l'YS,User :ST32 Station Id :ZHVF

THE VILLAS AT HARBOURPOINQ A CONDOMINIUM

Dcscrbtion of Additional Property

VILLA AZZURRO THAT PORTION OF TRACT C, SARATOGA REACH DMSION 2, ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 48 OF PLATS, PAGE 80, RECORDS OF SNOHOMISH COUNTY. WASHINGTON, DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHWESTERLY MOST CORNER OF SAID TRACT C, THENCE NORTH 19"08' 10" EAST. ALONG THE EASTERLY LINE OF SAID 'II1An C, A DISTANCE OF 140.M) FEET; THENCE NORTH 33"06'31" WEST, ALONG THE NORTHEASTERLY LINE OF SAID TRACT C, A DISTANCE OF 239.03 FEET; THENCE SOUTH 20°29'5 1" WEST, A DISTANCE OF 9.27 ITET; THENCE SOUTH 66"14'18" WEST. ADDISTANCE OF 32.41 FEET; THENCE SOUTH 4Z01 0'59" WEST. A DISTANCE OF 26.29 FEET; THXNCE SOUTH 89°14'4S" WEST, A DISTANCE OF 26.72 FEET; THENCE NORTH 73"52'1 T' WEST, A DISTANCE OF 47 33 FEET; THENCE SOUTH 38"06'28" WEST, A DISTANCE OF 27.63 FEET, THENCE SOUTH 55'36'52" WEST. A DISTANCE OF 3 1.76 FEET; THENCE SOUIH 65"38'55" WEST, A DISTANCE OF44.30 FEET THENCENORTH 6S023'21" WEST, A DISTANCE OF 31.44 FEET; THENCE NORTH 44°32'5S WEST. A DISTANCE OF 44.83 FEET; THENCE SOUTI1 71°53'00" WEST, A DISTANCE OF 93.78 FEET TO THE NORTHEASTERLY MARGIN OF HARBOUR HElGHTS PARKWAY AT THE POINT OF CURVATURE OF A CURVE TO THE LEFT HAVING A RADIUS OF 420.M) FEET AND FROM WHICH POINT THE CENI'ER OF SAID CURVE BEARS NORTH 66'40'29'' EAST; THENCE SOUTHEASTERLY, ALONG THE ARC OF SAID CURVE AND CONSUMING A CENTRAL ANGLE OF 60°32'1 9", AN ARC DISTANCE OF 443.77 FEET; THENCE SOUTH 83"51'50" EAST, A DISTANCE OF 100.00 FEET TO THE POR'JT OF BEGTNNING;

(ALSO KNOWN AS PARCEL I OF BOUNDARY LINE ADJUSTMENT RECORDED UNDER SNOHOMISH C O W RECORDIh'G NUMBER %10160175/9610165004), RECORDS OF SNOHOMISH COUNTY, WASHINGTON.




VILLA ROSA - THAT PORTION OF LOT3 OF THAT CERTAlN SHORT PLAT RECORDED SEPTEMBER 10. 1985 UNDER AUDITOR'S FILE NO. 8509100267. LYING SOUTH OF HARBOUR HEIGHTS PARKWAY AS CONVEYED TO SNOHOMISH C O W BY DEED RECORDED UNDER AUDITOR'S FTLE NUMBER 8512120218 BEING A -~~ - - - .- PORTION OF THE SOUTIEAST QUARTER O F ~ SEOTON 20 ANb OF THE SOUTHWEST QUARTER 01: SECTIONZI, TOWNSHIP 28 NORTH, RANGE 4 EAST, W.M., RECORDS OF SNOHOMISH COUNTY, WASHINGTON.




SCHEDULED

THE VILLAS AT HARBOUR P O N E . A CONDO-

b i t Descriptions, Allocated internsla Subphase 1A

SNOHOMlSYWA Document: CCR 1998.07140533


VILLAS AT HARBOUR POINTE, a condominium

Declaration Amendments 1 through 9 were recorded during the phases of construction

Each of these amendments pertained to:

Amending Schedule A; Description of Land in Condominium Deleted Schedule B phase of construction

and Amending Schedule D; Unit Descriptions, Allocated Interests

Amendment No. 10 was the final amendment to Schedules A & D /Schedule B of oriqinal declaration was Deleted)

[Copies of amendments No. 1 through 9 are available from the Association Management office]

Foster Pepper & Shefelrnan PLLC Attention: Gary N. Ackerman 11 1 l Third Avenue, Suite 3400 Seattle, Washington 98101-3299

AMENDMENT NO. 1 TO CONDOMNLJM DECLARATION FOR THE VILLAS AT HARBOUR POINTE, A CONDOMINIUM

CHICAGO E w ss \be Grantor/Declarant: POSSESSION VIEW, L.L.C., a Washington limited liability company

Additional names on pg. N/A

Grantee: THE VILLAS AT HARBOUR POMTE, A CONDOMINIUM Additional names on pg. N/A

Abbreviated Legal Description: CONDOMINIUM CREATED UNDER CONDOMINIUM

DECLARATION RECORDED UNDER SNOHOMISH COUNTY AUDITOR'S NO. 9807140533 Official legal description Same

Assessor's Tax Parcel ID#: 76 17-000- 10 1-0008: 76 17-000- 100-0009: 76 17-000-1 00-0504; 202804-4-003-0009; 8424-000-500-0006

Reference # (if applicable): N/A Additional numbers on pg. hT/A

AMENDMENT NO. 1 TO CONDOMINIUM DECLARATION FOR THE VILLAS AT HARBOUR POINTE, A CONDOMINIUM

The undersigned Declarant of The Villas at Harbour Pointe, a condominium, created under Condominium Declaration (the "Declaration") recorded under Snohomish County Auditor's No. 9807140533 and Survey Map and Plans filed under Snohomish County Auditor's No. 9807145002, hereby amends Schedule D of the Declaration in its entirety as attached hereto in order to correct the unit numbering.

DATED: 3&fY 17. I $ O C ~ DECLARANT I

POSSESSION VIEW, L.L.C., a Washington limited liability company

n

o er w g Member

STATE OF WASHINGTON ) ) ss

COUNTY OF KING 1 Robert C. Hanson

I certify that I know or have satisfactory evidence that S,eprjtmmp.b the person who appeared before me, and said person acknowledged that said person signed this instrument, on oath stated that said person was authorized to execute the instrument and acknowledged it as the Managing Member of POSSESSION VIEW, L.L.C., a Washington limited liability company, to be the free and voluntary act of such corporation for the uses and purposes mentioned in the instrument.

Dated this of July,

. - Notary publicin and for the siate of ~ashing; 'ox * . residing at Lrrs4 My appointment expires b - b - 5 5

SCHEDULE D

THE VILLAS AT HARBOUR POMTE, A CONDOMINIUM

Unit Descriptions, Allocated Interests Subphase 1A

* Legend: BR - bedroom BA - bathroom

Foster Pepper & Shefelman PLLC Attention: Gary N. Ackerman 11 11 Third Avenue, Suite 3400 ~ 8 ~ o O 1 ~ ~ o ~

1 0 1 0 1 1 9 8 1 0 : 2 3 Seattle, Washington 98101-3299 p . 0 0 0 5 R e c o r d e d

snohomish C o u n t y

AMENDMENT NO. 2 TO CONDOMINlUM DECLARATION FOR THE VILLAS AT HARBOUR P O W , A CONDOh4NIIM

(Subphase 1B)

GrantorlDeclarant: POSSESSION VIEW, L.L.C., a Washington limited liability company Additional names on pg. N/A

Grantee: THE VILLAS AT HARBOUR POINTE, A CONDOMWIUM Additional names on pg. N/A

Abbreviated Legal Description: CONDOMINIUM CREATED UNDER CONDOh4lNIUM

DECLARATION RECORDED UNDER SNOHOMISH COUNTY AUDITOR'S NO. 9807140533, AS AMENDED Official legal description Same

Assessor's Tax Parcel ID#: 7617-000-101-0008: 7617-000-100-0009: 7617-000-100-0504; 202804-4-003-0009: 8424-000-500-0006 9

Reference # (if applicable): N/A 9 8 0 7 14 0 5 3 3 Additional numbers on pg. &A

AMENDMENT NO. 2 TO CONDOMINIUM DECLARATION FOR THE VILLAS AT HARBOUR POINTE, A CONDOMMIUM

(Subphase 1B)

The undersigned Declarant of The Villas at Harbour Pointe, a condominium created under Condominium Declaration recorded under Snohomish County Auditor's No. 9807140533 as amended by Amendment No. 1 filed under Snohomish County Auditor's No. 9807200570 (the "Declaration"), and Survey Map and Plans filed under Snohomish County Auditor's No. 9807145002 as corrected by Affidavit of Minor Correction of survey filed under Snohomish County Auditor's No. 9807200569, desiring to add 11 Units in Subpbase 1B to the Condominium, hereby

(a) amends ScheduleB to the Declaration in its entirety in order to delete Subphase 1B from the Subsequent Phase Property;

@) amends Schedule D in its entirety as attached hereto in order to add 11 Units in Subphase 1B to the Condominium; and

(c) refers to the Survey Map and Plans for Subphase 1B of the Condominium filed together with the Declaration under Snohomish County Auditor's NO.?BIDD\ 5bb\ in Volume - of Condominiums, pages - through -.

Date $ 1 9 d


By SMPII LLC, Managing member F.

STATE OF WASHINGTON ) j ss.

COUNTY 0 & I certify that q k n o w or have satisfactory evidence that~%&/h&d signed this

instrument, on oath stated that such person was authorized to execute the instrument and acknowledged it as the Managing Member of SMPII, LLC, a Washington limited liability company, the Managing Member of POSSESSION VIEW, L.L.C., a Washington limited liability company, to be the free and voluntary act of such partieqor the uses and purposes mentioned in the instrument.

Dated this ~ & a y of d&J&V& 1998 -

.s.\-.', , , a 3 - cCLF J. 3, ' l r l " - q, ,--... ....*,, 'Qb~:) - % =- ? v ! ~ ~ . V t&'*". ,, , , * 'I$ fl 2 *~O'J/4j$i, -., 5 5

3 :: E S 7FU.E- c% SH/l/&S 5 %t,,, Puoc\C i ,.; \ .-= 3.- (Legibly Print or Stamp Name ofNotary)

' t* '~,: . 15.0 --.< t , ( c 1,. ..... +--,c2+.. d for the state of Washington,

'1, OF WAS~k\-* ' 8 \\\\\\\--CC

MY appointment expires 8- /5 -0 /

SCHEDULE B

THE VILLAS AT HARBOUR POJNTE, A CONDOMIMUM

Description of Subsequent Subphase Property

THAT PORTION OF LOT4, CITY OF MUKILTEO SHORT PLAT NO. SP 96-03 UNDER RECORDING NO. 9707240555, RECORDS OF SNOHOMISH COL'lrlTY, WASHINGTON, DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHWEST CORNER OF SAID LOT4, THENCE S00°25'41"W ALONG THE WEST LINE OF SAID LOT 4, A DISTANCE OF 525.65 FEET; THENCE S88'42'13"E 71.07 FEET; THENCE N65O05'00"E 102.00 FEET; THENCE S24°55'OO"E 25.00 FEET; THENCE N65"05'00"E 162.00 FEET; THENCE S26O08'13"E 217.39 FEET; TO THE PLAT BOUNDARY OF POSSESSION POINT VIEW 1 ACCORDING TO THE PLAT RECORDED IN VOLUME 59 OF PLATS, PAGES 57-60, RECORDS OF SAD COUNTY; THENCE THE FOLLOWING 5 COURSES AND DISTANCES ALONG SAID PLAT BOUNDARY; THENCE N88O15'09"E 1 18.5 1 FEET; THENCE N20°45'09"E 3 10.00 FEET; THENCE S80°44'51"E 116.62 FEET; THENCE N26'09'33"E 68.42 FEET; THENCE N06°22'00"E 186.53 FEET TO THE NORTH LINE OF SAID LOT4; THENCE THE FOLLOWING 6 COURSES AND DISTANCES ALONG SAD NORTH LINE; THENCE N86'38'34"W 35.33 FEET; THENCE N66°14'40"W 194.95 FEET; THENCE S7S055'53"W 141.15 FEET; TFENCE N43'49.44" W 126.94 FEET; THENCE S72"41'27"W 149.54 FEET; THENCE N85°12'20"W 226.60 FEET TO THE POINT OF BEGINNING.

SCHEDULE D


Unit Descriptions, Allocated Interests Subphase 1B

Legend: BR - bedroom BA -bathroom CEL - Common Expense Liabliity ICE - Interest in Common Elements

'~ased on living area (excluding garage and basement)

COPY ORIGIFI:\L ON FILE IN TH; C O U F l i Y k'J9iT3fl'S OFFICE

.L\LEhD\E>T SO. 5 TO C O ~ O ~ ~ X L X f DECL.-\RATION FOR THE \EL-AS AT KUlBObR P O ' i X i , .A COhDOblPiL31

(Subphase 1C)

Grantor,Declarant: POSSESSION VIEW, L.L.C., a Washington limited liability company .Additional names on pg.

Gra,:rte: ~ L T L L . A S .AT KWOLXPOIS'TE, x C O > D O % ~ ~ I .-\ddi:ional names on ps.

Abbreviated Lesal Description: CO>DOhiIzI'IL'iM CRE..\TED UNDER CONDO>LPTL%I

DECL-ULiTION RECORDED b m E R SNOHOlLllSH C O U . ' Y .XLDITOR'S KO. 9907140533, AS AILENDED Official legal description Same

.Asse~sor's Tau Parcel ID=: 76 17-000- 10 1-0008: 761 7-000-100-0009: 7617-000-100-0504; 202804-1-003-0009: 8124-000-500-0006

Reference 5 (if applicable): Additional numbers on pg. N/A

The ~ndersigned Decixant of The \'illas at Harbour Pointe, a condominium cr?ated under Coc .~omin i~m Declaration ::corded under Snohomish County .\uditor's NO. 9307140533 as amesded by .knendrnenr Sc j . 1 and 3 filed uader Snohomish County .Audiror's S o s 5307200576 and 3310010103. respecrive!y (the "Declaiation"), and Survey Map and Plans filed under Snohornish County Auditor'; No. 9807145003, as corrected by AfFidavit of hlinor Correction o f s u n e y filed under Snohomish County Auditor's No. 9807200369. and as amended for Subphase l B filed under Snohomish Couny ..\uditor's No. 9S10015001, desiring to add 11 Units in Subphase 1C to rhe Condominium, hereby

(a) amends Schedule B to the Declaration in its entirety in order to delete Subphase 1C from the Subsequent Phase Propeny;

(b) amends Schedule D in its entirety as attached hereto in order to add 11 Units in Subphase 1C to the Condominium; and

(c) refers to the Survey Map and Plans for Subphase 1C of the Condominium filed together with the Declaration under Snohomish County Auditor's No. in L'olume - of Condominiums, pages - through -. %?i210500\

POSSESSION VIEW. L.L.C., a Washingon limited liability company

By SMPIl LLC, Managing member

2

1 c c i 3 at I h o w or have satisfactory evidence that CC,+ \4afl%'7 signed inis ins t r~zen t , c n oath stared t h t such person was authorized' to execute the i n m m e n t and ac!ci;lsv~~ledgd it as the hlana-gins Member of SMPl3, LLC, a Washingon limited liabilirl; company, the \!znazic~ - - hlembe: oiPO%SESSION \EW. L.L.C., a Washington limited liability company. to be tk,= Cee a c J v o l u n t q act of such parties for the uses and purposes mentioned in the irsrurnent.

Dated rhis 7- day of 3~ b~ 1998.

S u s ~ n n ~ farscallm (Legibly Print or Stamp Name of Notary)

Notary public in d for the srate of LVashingoq residing at ~~~0~

My appointment expires - 20 . Do

THAT PORTION OF LOT 4. CITY OF kILXILTE0 SHORT PLAT S O . SP 96-03 L3DER RECORDKG KO. 9707?-10555. RECORDS OF SXOHOSIISH COb3TY. LV.ASHPiGTOV, DESCRIBED .-tS FOLLOLVS:

BEGIYTSG .AT THE YORTHWEST CORWR OF SrUD LOT4. THENCE S00?5'4i"\V .-\LONG THE \\EST LISE OF S.VD LOT4. X DIST.k?CE OF 525.65 FEET; THENCE 5880 - 7 l3"E 71.07 FEET; THENCE N65"05'00"E 102.00 FEET; THEXCE S?4"55'00nE 25.00 FEET: THEXCE N65"05'00"E 162.00 FEET; THENCE N25°01'00"W 66.76 FEET; THENCE N48'07'22"E 720.12 FEET; THENCE S2221'00"E 198.28 FEET; THENCE S42°29'27"W 98.47 FEET: THENCE S67"38'46"\V 78.54 FEET; THENCE S26°0S' 13"E 1 15.94 FEET TO THE PLAT BOL\D.%RY OF POSSESSION POIX-r VIEW 1.4CCORDNG TO THE PLAT RECORDED I?i V0LL';LIE 59 OF PLATS. P.-tGES 57-60. RECORDS OF S.;VD COUNTY; THENCE THE FOLLOmG 5 COL'RSES .i\D DIST.2.XCES ALONG SrUD PLAT B O L 3 D . W ; THENCE YSS0l 5'OS"E 1 18.5 1 FEET; THEXCE S2O04j'09"E 3 10.00 FEET, THENCE S8O04l'5 l"E 11 6.62 FEET: THESCE ?i\;16"09'j>"E 68.42 FEET; THENCE ;";06'?2'00"E 186.53 FEET TO THE NORTH L I X OF SrUD LOT 4; THENCE THE FOLLOWING 6 COURSES .k\D DIST.%NCES .%OXG S,VD SORTH LDT; THENCE N8698'3l"W 35.33 FEET; THENCE N6bo14'40"W 194.95 FEET: THENCE S75"55'53"W 141.15 FEET; THENCE N43"49'44"W 126.94 FEET; THESCE S7?41'1T'\V 143.54 FEET; THENCE N85"12'20"W 226.60 FEET TO THE POLXT OF BEGJ337NG.

SCHEDULE D

U n i t Descriptions. .Ailocated Interests Subphase IC

12 2 F T 1.10 PSI SCHEDULE D. PAGE I

' Legsnd: BR - bedroom BA - bathroom CEL -Common Expense Liabliity ICE - Intcrest in Common Elements

'Based on living area (excluding garage and basement)

SCHEDULE D. PAGE ?

LTOT.ALS: 1 I I 52393 1 100.00 1 34

Garale

30

i / 1

CEL and J Total I ICE" IVorinj

7 . 1 5 s 3 . 0 9 1 I i I Building I Knit Cni t Data+ I L e v 1 i n

1 5 1 10967 ! 2 ax X B . \ 1 1 . i 1 . 5 1 s 1.717 ?.is I : 7.180 1 3.25 1 1

j ' 1

: 15 1 9 5 . 2 A 1 1 1.245 ! 47: . 15 ( 10965 I 1 3 2 2 i l B A 1 1 , 2 1 1.701 1 476

Foster Pepper & Shefelman PLLC Attention: Gary N. Ackerman I I I I Third Avenue, Suite 3400

:Q Seattle, Washington 95 101-3799 - 3 2

@;I 0 Cs ?=4

-~ ~- . p .0006 R e c o r d e d IiI S n o h o m i r h C o u n t y

AIvIEND1MENT NO. 4 TO C O N D O i L W I DECLARATION FOR THE VILLAS AT HARBOUR POINTE, A CONDOiLlThWbI

(Subphase 1D)

GrantorDeclarant: POSSESSION VIEW, L.L.C., a Washington limited liability company Additional names on pg. X A

Grantee: THE VILLAS AT HARBOUR P O W , A CONDOiWNIUlLI Additional names on pg. L A

Legal Description: C0NDO;LflNTLJM CREATED UNDER CONDOMNIUbI DECLARATION RECORDED UNDER SNOHOkUSH C O W Y AUDITOR'S NO. 9807140533, AS AMENDED Official legal description Same

Assessor's Tax Parcel ID#: 7617-000-101-0008: 7617-000-100-0009: 7617-000-100-0504; 202804-4-003-0009; 8424-000-500-0006

Reference $ (if applicable): N/A Additional numbers on pg. N/A

AbENDiLIEhT NO. 4 TO CONDOblINZ1XI DECLARATION FOR THE VILLAS AT HARBOUR PONTE, A C 0 h ' D O ; L ~ l

(Subphase ID)

The undersigned Declarant of The Villas at Harbour Pointe, a condominium created under Condominium Declaration recorded under Snohomish County Auditor's No. 9807140533 as amended by Amendment Nos. 1, 2 and 3 filed under Snohomish County Auditor's Nos. 9807200570,9810010103 and 9812100360, respectively (the "Declaration"), and Survey Map and Plans filed under Snohornish County Auditor's No. 9807145002, as corrected by Affidavit of Nlinor Correction of survey filed under Snohomish County Auditor's No. 9807200569, and as amended for Subphases l B and 1C filed under Snohornish County Auditor's Nos. 9810015001 and 9812 105001, respectively, desiring to add 8 Units in Subphase ID to the Condominium, hereby

(a) amends Schedule B to the Declaration in its entirety in order to delete Subphase ID from the Subsequent Subphase Property;

(b) amends Schedule D in its entirety as attached hereto in order to add 8 Units in Subphase ID to the Condominium; and

(c) refers to the Survey Map and Plans for Subphase 1D of the Condominium filed together with the Declaration under Snohomish County Auditor's N O . ~ ~ D I I a 5 b b in Volume - of Condominiums, pages - through -.

I Dated ~ . h - ~ 11 , 1999. 0


By SMPII LLC, Managing member

BY Its Nt,,,, qr[ ! !;

> -" ~ k k c /-

o w

ST.ATE OF WASHINGTON ) ) ss.

COL%TY OF \LA, ) u

I certify that I know or have satisfactory evidence that &-signed this instrument, on oath stated that such person was authorized to execute the instrument and acknowledged it as the Managing Member of SbLF'II, LLC, a Washington limited liability company, the Managing Member of POSSESSION V E W , L.L.C., a Washington limited liability company, to be the free and voluntary act of such parties for the uses and purposes mentioned in the instrument.

Dated this 1 day of k ~ i y v y , 1999

- (signaLre of Notary)

S \~sanne b ~ ~ ~ \ \ a n (Legibly Print or Stamp Name of Notary)

~ o t a r ~ ' pibiiE in and for the state of Washington, residing at &&#a. My appointment expires 9-rn -0b

SCHEDULE B

THE \ILL.\S AT HARBOUR P O N E , A C O N D O b I ~ ~ f

Description of Subseouent Subphase Prooerty

TK\T PORTION OF LOT4 CITY OF MUKILTEO SHORT PLAT NO. SP96-03 UNDER RECORDING NO. 9707240555, RECORDS OF SNOHObUSH COUNTY, WASHINGTON DESCRIBED AS FOLLOWS:

B E G W G AT THE NORTHWEST CORNER OF SAID LOT4, THENCE S00°25'41"W ALONG THE WEST LINE OF SAID LOT4, A DISTANCE OF 246.67 FEET; THENCE SSSa12'13"E 219.68 FEET THENCE S23'18'19"E 61.10 FEET; THENCE S41°52'38"E 75.00 FEET; THENCE N4S007'22"E 179.30 FEET; THENCE S22°21'00"E 198.28 FEET; THENCE N2195'32"E 137.90 FEET; THENCE N61°15'00"E 73.00 FEET; THENCE S2S045'00"E 49.00 FEET; THENCE S74O58'30"E 23.00 FEET; THENCE S09°00'00"W 30.39 FEET TO THE PLAT BOUNDARY OF POSSESSION POINT VIEW 1 ACCORDING TO THE PLAT RECORDED IN VOLUME 59 OF PLATS, PAGES 57-60, RECORDS OF SAID COUNTY; THENCE THE FOLLOWING 3 COURSES AND DISTANCES ALONG SAID PLAT BOUNDARY; THENCE SS0°44'51"E 100.86 FEET; THENCE N26"09'33"E, 65.42 FEET; THENCE hr06S2'00"E 156.53 FEET TO THE NORTH LPJE OF SAID LOT 4; THENCE THE FOLLOWING 6 COURSES AND DISTANCES .ALOKG SAID NORTH LINE; THENCE N8b038'34"W 35.33 FEET; THENCE N66"14'40"W 194.95 FEET; THENCE S75"55'53"W 141.15 FEET; THENCE N43°49'44"W 126.94 FEET; THENCE S7Z041'27"W 149.54 FEET; THENCE N85°12'20W 226.60 FEET TO THE PODUT OF B E G W G .

SCHEDULE D

THE VILLAS AT HARBOUR POINTE. A CONDOMMIUh'I

Unit Descriptions, Allocated Interests Subphase ID

li11.99 J : I O PM SCHEDULE D. PAGE I

Legend: BR - bedroom BA -bathroom CEL - Common Expense Liabliity ICE - Interest in Common Elements

II Based on living area (excluding garage and basement)

1/11~994:10 Phl SCHEDULE D, PACE 2

Foster Pepper & Shefelman PLLC Attention: Gary N. Ackerman 11 11 Third Avenue, Suite 3400 Seattle, Washington 98101-3299

AMENDMENT NO. 5 TO CONDOMINIUM DECLARATION FOR THE VILLAS AT HARBOUR P O N E , A CONDOMINIUM

(Subphase lE)

l~lll~~~l

GrantorIDeclarant: POSSESSION VIEW, L.L.C., a Washington limited liability company Additional names on pg. N/A

p.0006 "!?!?!!'!9:52 R e c o r d e d

Grantee: THE VILLAS AT HARBOUR P O N E , A CONDOMINIUM Additional names on pg. N/A

Snohornish C o u n t y

Legal Description: CONDOMINIUM CREATED UNDER CONDOMIMUM DECLARATION RECORDED UNDER SNOHOMISH COUNTY AUDITOR'S NO. 9807140533, AS AMENDED Official legal description b e

Assessor's Tax Parcel ID#: 7617-000-101-0008: 7617-000-100-0009: 7617-000-100-0504; 202804-4-003-0009: 8424-000-500-0006

Reference # (if applicable): N/A Additional numbers on pg. N/A


(Subphase 1E)

The undersigned Declarant of The Villas at Harbour Pointe, a condominium created under Condominium Declaration recorded under Snohomish County Auditor's No. 9807140533 as amended by Amendment Nos. 1, 2 and 3 filed under Snohomish County Auditor's Nos. 9807200570,9810010103 and 9812100360, respectively (the "Declaration"), and Survey Map and Plans filed under Snohomish County Auditor's No. 9807145002, as corrected by Midavit of Minor Correction of survey filed under Snohomish County Auditor's No. 9807200569, and as amended for Subphases lB, l C and ID filed under Snohomish County Auditor's Nos. 9810015001, 9812105001 and 9901120296, respectively, desiring to add 13 Units in Subphase 1E to the Condominium, hereby

(a) amends Schedule B to the Declaration in its entirety in order to delete Subphase IE from the Subsequent Subphase Property;

(b) amends Schedule D in its entirety as attached hereto in order to add 13 Units in Subphase 1E to the Condominium; and

(c) refers to the Survey Map and Plans for Subphase 1E of the Condominium filed together with the Declaration under Snohomish County Auditor's No. in Volume - of Condominiums, pages - t h r o u g h . 0 2 1 7 5 0 0 \

Dated & b ~ a r q \ \ , 1999.



STATE OF WASHINGTON ) ) ss,

COUNTY OF KI fl fl, ) J

I certify that I know or have satisfactory evidence thatfjCo$~.Hm50a signed this instrument, on oath stated that such person was authorized to execute the instrument and acknowledged it as the Managing Member of SMPII, LLC, a Washington limited liability company, the Managing Member of POSSESSION VIEW, L.L.C., a Washington limited liability company, to be the free and voluntary act of such parties for the uses and purposes mentioned in the instrument.

Dated this \\* day of Ghfll;3.v~\ , 1999.

(Signature of Notary)

S u s a n n ~ C~arsea\\e-\ (Legibly Print ar Stamp Name of Notary)

Notary public in and for the state of Washington, residing at Sa.a-k\ L

My appointment expires y - 2 0 - 0 D

SCHEDULE B


Descri~tion of Subsequent Sub~hase Pro~erty

THAT PORTION OF LOT 4 CITY OF MUKTLTEO SHORT PLAT NO. SP 96-03 UNDER RECORDING NO. 9707240555, RECORDS OF SNOHOMISH COUNTY, WASHINGTON DESCRIBED AS FOLLOWS:

BEGNNING AT THE NORTHWEST CORNER OF SAID LOT4, THENCE S00°25'41"W ALONG THE WEST LINE OF SAID LOT4, A DISTANCE OF 525.65 FEET; THENCE S88'42'13"E 71.07 FEET; THENCE N65"05'00nE 102.00 FEET; TIHENCE S24"55'0OWE 25.00 FEET; THENCE N65"05'00"E 162.00 FEET; THENCE N25'01'00"W 66.76 FEET; THENCE N48"07'22"E 388.63 FEET; THENCE N23'02'29"E 108.35 FEET TO THE NORTH LINE OF SAlD LOT 4; THENCE THE FOLLOWING 4 COURSES AND DISTANCES ALONG SAID NORTH LINE; THENCE S75'55'53 "W 141.15 FEET; THENCE N43O49'44"W 126.94 FEET; THENCE S72"41127"W 149.54 FEET; THENCE N85"12'2OUW 226.60 FEET TO THE POINT OF BEGINNING.

SCHEDULE D

THE VILLAS AT HARBOUR POINTE. A CONDOMlNlUM

Unit Descriptions, Allocated Interests Subphase I E

SCHEDULE D , PAGE I

Legend: BR -bedroom UA - bathroom CEL - Common Expense Liabliity ICE - Interest in Common Elements

U Based on living area (excluding garage and basement); rounded to equal 100%

SCHEDULE D, PAGE 2

Foster Pepper & Shefelman PLLC Attention: Gary N. Ackerman l l 1 1 Third Avenue, Suite 3400 Seattle, Washington 98101-3299

99050703b7 0 5 / 0 7 / 9 9 10:37 p . 0 0 0 6 R e c o r d e d S n o h o m i s h County


(Subphase 1 F)

GrantorIDeclarant: POSSESSION VIEW, L.L.C., a Washington limited liability company Additional names on pg. N/A

Grantee: THE VILLAS AT HARBOUR POlNTE, A CONDOMIMUM Additional names on pg. N/A

Legal Description: CONDOMTNIUM CREATED UNDER CONDOMINIUM DECLARATION RECORDED UNDER SNOHOMISH COUNTY AUDITOR'S NO. 9807140533, AS AMENDED Official legal desc.ription

Assessor's Tax Parcel ID#: 761 7-000- 10 1-0008: 76 17-000- 100-0009: 761 7-000- 100-0504. 202804-4-003-0009: 8424-000-500-0006


04/19/994:31 Pbl 5009lSl5ll

AMENDMENT NO. 6 TO COWOMINIUM DECLARATION FOR THE VILLAS AT HARBOUR POINTE, A CONDOMINIUM

(Subphase IF)

The undersigned Declarant of The Villas at Harbour Pointe, a condominium created under Condominium Declaration recorded under Snohomish County Auditor's No. 9807140533 as amended by Amendment Nos. I, 2, 3 and 4 filed under Snohomish County Auditor's Nos. 9807200570, 981 0010103, 98 12100360 and 9902170019, respectively (the "Declaration"), and Survey Map and Plans filed under Snohomish County Auditor's No. 9807145002, as corrected by Affidavit of Minor Correction of survey filed under Snohomish County Auditor's No. 9807200569, and as amended for Subphases IB, IC, l D and IE filed under Snohomish County Auditor's Nos. 98 10015001, 9812105001, 9901 I20296 and 9902175001, respectively, desiring to add 10 Units in Subphase IF to the Condominium, hereby

(a) amends Schedule B to the Declaration in its entirety in order to delete Subphase IF from the Subsequent Subphase Property;

(b) amends Schedule D in its entirety as attached hereto in order to add 10 Units in Subphase IF to the Condominium; and

(c) refers to the Survey Map and Plans for Subphase 1F of the Condominium 5!ed together with the Declarx!icn under Snohomish County Auditor's No. Yqd-50 75002 in Volume - of Condominiums, pages - through - .



BY Its siZEJiL- a >. t ~ r r , ./

0

STATE OF WASHINGTON ) ) ss.

COUNTYOF _ ) X \ ' ~ O \ )

I certify that I know or have satisfactory evidence that %& M. t\&n\crq signed this instrument, on oath stated that such person was authorized to execute the instrument and acknowledged it as the Managing Member of SMPII, LLC, a Washingon limited liability company, the Managing Member of POSSESSION VIEW, L.L.C., a Wash in~~on limited liability company, to be the free and voluntary act of such parties for the uses and purpcses mentioned in the instrument.

Dated this bw day of , 1999

- L.


S~SAOMP, Carsba\\eq (Legibly Print or Stamp Name of Notary)

Notary public in and the state of Washington, residing at L

My appointment expires q - ~ - o D

SCHEDULE B

THE VILLAS AT HARBOUR P O N E , A CONDOMIMUM

Description of Subsequent Subohase Prooerty

THAT PORTION OF LOT 4 CITY OF MUKILTEO SHORT PLAT NO. SP 96-03 UNDER RECORDING NO. 9707240555, RECORDS OF SNOHOMISH COUNTY, WASHINGTON DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHWEST CORNER OF SAD LOT4, THENCE S00°25'41"W ALONG THE WEST LINE OF SAID LOT4, A DISTANCE OF 246.67 FEET; THENCE S88O42'13"E 219.68 FEET; THENCE S23°18'19"E 61.10 FEET; THENCE S41°52'38"E 75.00 FEET; THENCE N48"07'22"E 347.81 FEET; THENCE N23'02'29"E 108.35 FEET TO THE NORTH LNE OF SAID LOT 4; THENCE THE FOLLOWING 4 COURSES AND DISTANCES ALONG THE NORTH LINE OF SAID NORTH LINE; THENCE S7S055'53"W 141.15 FEET; THENCE N43'49'44" W 126.94 FEET; THENCE S72'4 1'27"W 149.54 FEET; THENCE N85"12'20nW 226.60 FEET TO THE POINT OF BEGINNING.

SCHEDULE D

THE VILLAS ATHARBOUR POINTE. A CONDOMINIUM

Unil Dcscripfions, Allocafcd lnlercsls Subphase IF

SCHEDULE D. PAGE I

Legend: BR - bedroom UA - bathroom CEL -Common Expense Liabliity ICE - Interest in Common Elements

"Uascd on living area (excluding garage and basement); rounded lo equal 100%

0~119119994:31 PM SCHEDULE D, PAGE 2


IIllilllllll . Lw;D?a3 M iliilIllll llllIIllllIlW IIIII Mlllll~llllllll~lll 199906220i82

06/22/1999 03:36 PM Snohomish P.0006 RECORDED County


(Subphase 1 G)

Grantor/Declarant: POSSESSION VIEW, L.L.C., a Washington limited liability company Additional names on pg. N/A

Grantee: THE VILLAS AT HARBOUR POINTE, A CONDOMINIUM Additional names on pg. X A

Legal Description: CONDOMINIUM CREATED UNDER CONDOMINIUM DECLARATION RECORDED UNDER SNOHOMISH COUNTY AUDITOR'S NO. 9807140533, AS AMENDED Official legal description w e

Assessor's Tax Parcel ID#: 7617-000-101-0008: 7617-000-100-0009; 7617-000-100-0504; 2028044-003-0009: 8424-000-500-0006

Reference # (iapplicable): N/A Additional numbers on pg. N/A

AMENDMENT NO. 7 TO CONDOh4INIUM DECLARATION FOR THE VILLAS AT HARBOUR POINTE, A CONDOMINIUM

(Subphase 1G)

The undersigned Declarant of The Vias at Harbour Pointe, a condominium created under Condominium Declaration recorded under Snohomish County Auditor's No. 9807140533 as amended by Amendment Nos. 1, 2, 3, 4, 5 and 6 fled under Snohomish County Auditor's Nos. 9807200570, 98 10010103, 9812100360, 9901 120296, 9902 170018 and 9905070167, respectively, and S w e y Map and Plans filed under Snohomish County Auditor's No. 9807145002, as corrected by Affidavit of Minor Correction of survey filed under Snohomish County Auditor's No. 9807200569, and as amended for Subphases lB, lC, ID, 1E and 1F filed under Snohomish County Auditor's Nos. 9810015001,9812105001,9901 125002,9902175001,9905075002, respectively, desiring to add 10 Units in Subphase 1G to the Condominium, hereby

(a) amends ScheduleB to the Declaration in its entirety in order to delete Subphase 1G &om the Subsequent Subphase Property;

(b) amends Schedule D in its entirety as attached hereto in order to add 10 Units in Subphase 1G to the Condominium; and

(c) refers to the Survey Map and Plans for Subphase 1G of the Condominium fled together with the Declaration under Snohomish County Auditor's No. l w & q in Volume - of Condominiums, pages - through -.

Dated 4L-Z , 1999.



STATE OF WASHINGTON )

COUNTY OF

I certifi that I know or have satisfactory evidence that #L~?/-,w ~gned this instrument, on oath stated that such person was authorized to execute the instrument and acknowledged it as the Managing Member of SMPII, LLC, a Washington limited liability company, the Managing Member of POSSESSION VIEW, L.L.C., a Washington limited liability company, to be the gee and voluntary act of such parties for the uses and purposes mentioned in the instrument.

Dated this & - ? ~ i / d a ~ of 1999.

JEANNE L BARTEL STATE OF WASHINGTON

NOTARY -*- PUBLIC XY CC':.L!ISS108 EXPIRES 6-16-01


&Me r. (Legibly Print or Stamp Name of Notary)

state of ~ a s k n g t o n ,

My appointment expires 6 / 6 / 0 /

SCHEDULE B

THE VILLAS AT HARBOUR P O N E , A CONDO^

Description of Subsequent Subohase Property

THAT PORTION OF LOT 4 CITY OF MUKLTEO SHORT PLAT NO. SP 96-03 UNDER RECORDING NO. 9707240555, RECORDS OF SNOHOMISH COUNTY, WASHINGTON DESCRIBED AS FOLLOWS:

COMMENCING AT THE NORTHWEST CORNER OF SAID LOT 4, THENCE S00°25'41"W ALONG THE WEST LINE OF SAID LOT4, A DISTANCE OF 246.67 FEET; THENCE S88'42'13"E 219.68 FEET; THENCE S23°18'19"E 61.10 FEET; THENCE S41°52'38"E 75.00 FEET; THENCE N48"07'22"E 170.46 FEET TO THE POINT OF BEGINNING OF THE HEREIN DESCRIBED TRACT; THENCE CONTINUING N48'07'22"E 177.35 FEET; THENCE N23'02'29"E 108.35 FEET TO THE NORTH LINE OF SAID LOT 4; THENCE S75O55'53"W ALONG SAID NORTH LINE, 141.15 FEET; THENCE S36°12'35"W 153.95 FEET; THENCE S41°52'38"E 80.00 FEET TO THE POINT OF BEGWNING.

SCHEDULED THE VILLAS AT N O U R POINTE, A CONDOMLMUM

Unit Drmipfions, Allacatrd Interests Subphase 1G

6m/99 1:42PM SCHEDblE D, PAGE I

Legend: BR - bedroom BA - b a h m CEL - Common Ex- Liabliity ICE - Intarst in Common Elmmrs

*~ased on relative living mea(rxc1uding garage and h a t ) ; rounded to qual 100%


.V> ,S3 ,~~>L . 1999091 70231 0 9 / 1 7 / 1 9 9 9 11:26 AM Snohomish P.OQO7 RECORDED C o u n t y

AMENDMENT NO. 8 TO CONDOMWIUM DECLARATION FOR THE VILLAS AT HARBOUR POINTE, A CONDOMINIUM

(Subphase 1H)

Grantormeclarant: POSSESSION VIEW, L.L.C., a Washington limited liability company Additional names on pg. N/A

Grantee: THE VILLAS AT HARBOUR POINTE, A CONDOMINIUM Additional names on pg. N/A

Legal Description: CONDOMINIUM CREATED UNDER CONDOMINIUM DECLARATION RECORDED UNDER SNOHOMISH COUNTY AT-JDITOR'S NO. 9807140533, AS AMENDED Otficial legal description w e

Assessor's Tax Parcel ID#: 76 17-000-1 0 1-0008: 76 17-000-1 00-0009; 7617-000-1 00-0504; 202804-4-003-0009: 8424-000-500-0006

Reference # (if applicable): 9807140533 Additional numbers on pg. 1


(Subphase 1H)

The undersigned Declarant of The Villas at Harbour Pointe, a condominium created under Condominium Declaration recorded under Snohomish County Auditor's No. 9807140533 as amended by Amendment Nos. 1, 2, 3, 4, 5, 6 and 7 filed under Snohornish County Auditor's Nos. 9807200570, 9810010103, 9812100360, 9901 120296, 9902170018, 9905070167 and 199906220382, respectively, (the "Declaration"), and Survey Map and Plans filed under Snohomish County Auditor's No. 9807145002, as corrected by Affidavit of Minor Correction of survey filed under Snohomish County Auditor's No. 9807200569, and as amended for Subphases IB, IC, ID, lE, IF and 1G filed under Snohomish County Auditor's Nos. 98 10015001, 9812105001, 9901 125002,9902175001,9905075002 and 199906225049, respectively, desiring to add 5 Units in Subphase 1H to the Condominium. hereby

(a) amends Schedule B to the Declaration in its entirety in order to describe the additional property;

@) amends Schedule D in its entirety as attached hereto in order to add 5 Units in Subphase 1H to the Condominium; and

(c) refers to the Survey Map and Plans for Subphase 1H of the Condominium filed together with the Declaration under Snohomish County Auditor's N o . / f l ~ @ / 7 5 ~ 0 ~ in Volume " of Condominiums, pages = through -.

Dated *bgu 14 , 1999.




COUNTY OF \ktiCi. ) 'd

1 certity that I h o w or have satisfactory evidence t h a t s m. kv&-igned this instrument, on oath stated that such person was authorized to execute the instrument and acknowledged it as the Managing Member of SMPII, LLC, a Washington limited liability company, the Managing Member of POSSESSION VIEW, L.L.C., a Washington limited liability company, to be the free and voluntary act of such parties for the uses and purposes mentioned in the instrument.

Dated this J qb day of k, 1999

3 u f a ~ n ~ - C a ~ v l l ~ (Legibly Print or Stamp Name of Notary)

Notary public in r the state of washington, residing at

My appointment expires 9-Jo -573

SCHEDULE B


Description of Additional Pro~erty

VILLA AZZURRO

THAT PORTION OF TRACT C, SARATOGA REACH DIVISION 2, ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 48 OF PLATS, PAGE 80, RECORDS OF SNOHOMISH COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHWXXERLY MOST CORNER OF SAID TRACT C; THENCE N19"08'10"E ALONG THE EASTERLY LINE OF SAID TRACT C, A DISTANCE OF 140.00 FEET; THENCE N33"06'3 1"W, ALONG THE NORTHEASTERLY LINE OF SAID TRACT C, A DISTANCE OF 239.03 FEET, THENCE S20°29'51"W, A DISTANCE OF 9.27 FEET; THENCE S66O14'18"W, A DISTANCE OF 32.41 FEET; THENCE S42°10'59"W, A DISTANCE OF 26.29 FEET; THENCE S89"14'45"W, A DISTANCE OF 26.72 FEET; THENCE N73"52'17"W, A DISTANCE OF 47.33 FEET; THENCE S38"06'28"W, A DISTANCE OF 27.63 FEET; THENCE S55"36'52"W, A DISTANCE OF 31.76 FEET; THENCE S65"38'55"W, A DISTANCE OF 44.30 FEET; THENCE N65"2321"W, A DISTANCE OF 31.44 FEET; THENCE N44912'5SUW, A DISTANCE OF 44.83 FEET; THENCE S71°53'00"W, A DISTANCE OF 93.78 FEET TO THE NORTHEASTERLY MARGIN OF HARBOUR HEIGHTS PARKWAY AT THE POINT OF CURVATURE OF A CURVE TO THE LEFT HAVING A RADIUS OF 420.00 FEET AND FROM WNCH POINT THE CENTER OF SAID CURVE BEARS N66"40'29"E; THENCE SOUTHEASTERLY, ALONG THE ARC OF SAID CURVE AND CONSUMING A CENTRAL ANGLE OF 60°32'19", AN ARC DISTANCE OF 443.77 FEET; THENCE S83°51'50"E, A DISTANCE OF 100.00 FEET TO THE POINT OF BEGINNING.

THE VILLAS AT HARBOUR POINIE. A CONDOMINIUM

Unit Descriptions. Allwated Interests Subphase IH

SCHEDULED. PAGE I

wn411999 2:ll PM SCHEDULED. PAGE 2

Legend: BR - bedroom BA - bathroom CEL - Common Expense Liabliity ICE - Interest in Common Elements

%ased on relative living area (excluding garage and basement); rounded to equal 100%

wnulw, 2.51 PM SCHEDULE D. PAGE 3

Foster Pepper & Shefelman PLLC . I U I I 1 E ' ~ , 7 > .

Attention: Gary N. Ackerman 199911220339 11 11 Third Avenue, Suite 3400 11 /22 /1999 11:50 AM Snohomish Seattle, Washington 98101-3299 P.0007 RECORDED c o u n t y


(Phase 2 -Final Phase)

GrantorDeclarant: POSSESSION VIEW, L.L.C., a Washington limited liability company Additional names on pg. &A

Grantee. THE VILLAS AT HARBOUR POINTE, A CONDOMINIUM Additional names on pg. N/A

Legal Description: CONDOMMTUM CREATED UNDER CONDOMIMUM DECLARATION RECORDED UNDER SNOHOMISH COUNTY AUDITOR'S NO. 9807140533, AS AMENDED Official legal description Same

Assessor's Tax Parcel ID#: 7617-000-1 01-0008: 76 17-000- 100-0009: 761 7-000-100-0504; 202804-4-003-0009: 8424-000-500-0006

Reference # (if applicable): a qm-7 I q~ 533 Additional numbers on pg. E A

AMENDMENT NO. 9 TO CONDOMINIUM DECLARATION FOR THE VILLAS AT HARBOUR POINTE, A CONDOMTNIUM

phase 2 -Final Phase)

The undersigned Declarant of The Villas at Harbour Pointe, a condominium created under Condominium Declaration recorded under Snohomish County Auditor's No. 9807140533 as amended by Amendment Nos. 1, 2, 3, 4, 5, 6, 7 and 8 filed under Snohomish County Auditor's Nos.9807200570, 9810010103, 9812100360, 9901120296, 9902170018, 9905070167, 199906220382 and 199909170231, respectively, (the "Declaration"), and Survey Map and Plans filed under Snohomish County Auditor's No. 9807145002, as corrected by Affidavit of Minor Correction of survey filed under Snohomish County Auditor's No. 9807200569, and as amended for Subphases lB, lC, ID, lE, IF, 1G and 1H filed under Snohomish County Auditor's Nos. 9810015001, 9812105001, 9901 125002, 9902175001, 9905075002, 199906225049 and 199909175002, respectively, desiring to add 16 Units in Phase 2 as the final phase to the Condominium and to change the name of Phase 2 to Villa Rosa, hereby

(a) amends Schedule A to add the land in Phase 2 to the Condominium;

(b) deletes Schedule B to the Declaration in its entirety;

(c) amends Schedule D in its entirety as attached hereto in order to add 16 Units in Phase 2 to the Condominium; and

(d) refers to the Survey Map and Plans for Phase 2 of the Condomi filed together with the Declaration under Snohomish County Auditor's ~ o . \ q q q I I J LCiCC of Condominiums, pages - through -.

Dated i Il'L'L , 1999.


By SMPII LLC, Managing member ..

STATE OF WASHJNGTON ) ss

COUNTY OF 141 A4 ) J

I certify that I h o w or have satisfactory evidence that &&r"/l. b signed this instrument, on oath stated that such person was authorized to execute the instrument and acknowledged it as the Managing Member of SMPII, LLC, a Washington limited liability company, the Managing Member of POSSESSION VIEW, L.L.C., a Washington limited liability company, to be the free and voluntary act of such parties for the uses and purposes mentioned in the instrument.

Dated this ad day of NfjVfimL~ , 1999.

(Legibly Print or Stamp Name of Notary) e state of Washington,

My appointment expires y - 2 -o;>

SCHEDULE A

THE VILLAS AT HARBOURPOINTE, A CONDOMINIUM

Descriotion of Land in Condominium

VILLA MONTE

LOT 4 OF SHORT PLAT RECORDED UNDER SNOHOMISH c o m n RECORDING NUMBER 9707240555, AS DELINEATED ON SURVEY RECORDED UNDER SNOHOMISH COUNTY RECORDING NUMBER 9707245002, RECORDS OF SNOHOMISH COUNTY, WASHINGTON;

TOGETHER WITH TRACT 500, POSSESSION POINT VIEW I, ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 59, OF PLATS, PAGES 57 THROUGH 60, INCLUSIVE, RECORDS OF SNOHOMISH COUNTY, WASHINGTON;

SITUATE IN THE COUNTY OF SNOHOMISH, STATE OF WASHINGTON.

VILLA ROSA THAT PORTION OF TRACT C, SARATOGA REACH DIVISION 2, ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 48 OF PLATS, PAGE 80, RECORDS OF SNOHOMISH COUNTY, WASHINGTON, DESCRlBED AS FOLLOWS:

BEGINNING ATTHE SOUTHWESTERLY MOST CORNER OF SAID TRACT C; THENCE NORTH 19°08'i0" EAST, ALONG THE EASTERLY LINE OF SAID TRACT C, A DISTANCE OF 140.00 FEET; THENCE NORTH 33"06'3l"WEST, ALONG THE NORTHEASTERLY LINE OF SAID TRACT C, A DISTANCE OF 239.03 FEEI'; THENCE SOUTH 20°29'5 I" WEST, A DISTANCE OF 9.27 FEET; THENCE SOUTH 66°14'18"WEST, A DISTANCE OF 32.41 FEET, THENCE SOUTH 42°10'59" WEST, A DISTANCE OF 26.29 FEET, THENCE SOUTH 89'14'45" WEST, A DISTANCE OF 26.72 FEET, THENCENORTH 73Oj2'17" WEST, A DISTANCE OF 47.33 FEET; THENCE SOUTH 38O06'28"WEST, A DISTANCE OF 27.63 FEET, THENCE SOUTH 55'36'52" WEST, A DISTANCE OF 3 1.76 FEET; THENCE SOUTH 6j038'55" WEST, A DISTANCE OF 44.30 FEET; THENCE NORTH 6j023'21" WEST, A DISTANCE OF 3 1.44 FEET; THENCE NORTH 44O32'55"WEST, A DISTANCE OF 44.83 FEET, THENCE SOUTH 7 i053'00" WEST, A DISTANCE OF 93.78 FEET TO THE NORTHEASTERLY MARGIN OF HARBOUR HEIGIlTS PARKWAY AT THE POINT OF CURVATURE OF A CURVE TO THE LEFT HAVING A RADIUS OF 420.00 FEET AND FROM WHICH POINT THE CENTER OF SAID CURVE BE.4RS NORTH 66O40.29" E.4ST; THENCE SOUTHEASTERLY, ALONG THE ARC OF SAID CURVE AND CONSUMING A CENTRAL ANGLE OF 60°32'19", AN ARC DISTANCE OF 443.77 FEET; THENCE SOUTH 83"s 1'50" EAST, A DISTANCE OF 100.00 FEET TO THE POINT OF BEGINNING;

(ALSO KNOWN AS PARCEL 1 OF BOUNDARY LINE ADJUSTMENT RECORDED UNDER SNOHOMISH COUNTY RECORDING NUMBER 9610160175/9610165004), RECORDS OF SNOHOMISH COUNTY, WASHINGTON.

THE VILI.AS AT HARBOUR POINIF. A CONDOMINIUM

Unit Descriptions. Allocated Inleresls Phase 2

15 1 10968 ( H I 2 B R . 2 B A I 1 1 1,245 1 472 / 1,717 ( 0.79 1 I 15 1 10969 1 BIR 12 BR,Z%BAI 1,2 1 1,704 1 476 1 2,180 ] 1.08 1 I

SCHEDULE D, PAGE I

l l l l&99?21 AM SCHEDULE D, PAGE 2

Lcgcnd: BR - bedroom RA - b:!+hoom CEL - Co~nrnan Expense Linbliity ICE - Intcresl in C o ~ a m o ~ ~ Eletnents

"~nscd 0x1 rclative living urea (cxcludinggnragc and basement); rounded lo cqttal 100%

SCHEDULED. PAGE 3

Foster Pepper & Shefelman PLLC Attention: Gary N. Ackerman 11 11 Third Avenue, Suite 3400 Seattle, Washington 98 101-3299

199906230536 06/23/1999 01 :43 PM Snohomish P. 0004 RECORDED County

DECLARATION OF RESTRICTIVE COVENANT REGARDMG CARPETING i\Z

- . . , - a - , &,..L:\23 ,-, . (gj= e 3d-l.r-l.


Grantee: POSSESSION VIEW, L.L.C., a Washingon limited liability company Additional names on pg. N/A

Legal Description: UNIT 10940, VILLAS A T HARBOUR P O m , A C O M ) O m PER CONDO^ DECLARAnON RECORDED UNDER. SNOHOMISH COUNTY AUDITOR'S NO. 9807140533, AS AWZNDED Official legal description

Assessor's Tax parcel m. 7617-000-100-1007

Reference !! (if applicable): K A Additional numbers on pg.

DECLARATION OF RESTRICTIVE COVENANT REGARDING CARPETMG ffi

THIS DECLARATION is made this - a day of May, 1999, by POSSESSION VEW, L.L.C., a Washington limited liability company ("Declarant"), as Declarant of The Villas at Harbour Pointe, a condominium (the "Condominium"), per Condominium Declaration recorded under Snohornish Courtney Auditor's File No. 9807140533, as amended (the "Declaration"), and as Owner of Unit 10940 in the Condominium.

RECITALS:

A Declarant has entered into an agreement to sell Unit 10940 to a purchaser who wants to hardsurface flooring innalled throughout the Unit.

B. Declarant is concerned about the efFea of lnrdsurface flooring in Unit 10940 on the unit below (Unit 10948 in the Condominium) but is willing to install the hardsurface flooring on the condition that the owner of Unit 10940 be required to keep a substantial ponion of the floors of the Unit covered with carpet or furniture.

DECLARATION:

FOR GOOD AND Vt\LUABLE CONSIDERATION, the Declarant hereby declares that Unit 10940 of the Condominium to be subject to the following restrictive covenant:

1. The Owncr of Unit 10940 shall, at a minimum and all times, maintain carpeting or furniture on the areas of Unit 10940 shown on the floor plan attacheh hereto as Exhibit A

2. This restrictive covenant k for the benefit of Unit 10948, shall run with the land, and shall be binding upon and inure to the benefit of the successors and assigns of the Declarant and all future owners of Units 10940 and 10948.

3. This restrictive covenant may be modified or amended only by written agreement of the owners of Units 10940 and 10948 recorded in the land records of Snohornish County, Washington.


By SMPII LLC, Manaying member I

STATE OF WASHD\IGTON ) ) ss.

COUNTY O F KING 1

I certify that I know or have satisfactory evidence that '&& fl. H&SOTI signed this i n m m e n t , on oath stated that such person was authorized to execute the instrument and acknowledged it as the Managing Member of S M P 4 LLC, a Washington limited liability company. the Managing Member of POSSESSION VIEW. L.L.C.. a Washingon limited liability company. to be the free and voluntary act of such parties for the uses and purposes mentioned in the instrument.

Dated this day of rfl% , 1999.

- 2 ' 7

ur~r?~ Car=l\w (Legibly Print or Stamp Name o f Notary)

Notary public in and ate of Washington, residing at L

MY appointment expires 4 -20 -DO

03.2299 4211 PSI -2- 10011611.01

7 9 ~ 9 0 5 2 3 0 5 3 6

rl 33 Foster Pepper & Shefelman PLLC

Attention: Gary N. Ackerman 11 1 l Third Avenue, Suite 3400 Seattle, Washington 98 101-3299

N 8 69 6= €3 e 8 c3

AMENDENT NO. I0 TO CONDOMNUbl DECLARATION AND AMENDMENT TO SURVEY MAP AND PLANS FOR

SUBPHASES 1C AM) 1G FOR THE VILLAS AT HARBOUR POINTE, A CONDOMMUM

C/I!C.! CD ( kO ~ 3 / > 1 b

Grantor/Declarant: POSSESSION VIEW, L.L.C., a Washington limited liability company Additional names on pg. &A

Grantee: VILLAS AT HARBOUR POINTE, A CONDOMINIUM Additional names on pg. K A

Legal Description: CONDO- CREATED UNDER C O N D O I ~ DECLARATION RECORDED UNDER SNOHOMISH COUNTY AUDITOR'S NO. 9807140533, AS AMENDED OEcial legal description Same

Assessor's Tax Puce[ W: 76 17-C30-101-0003: 76 17-000- 100-W0; 76 17-000-1 00-0504; 202804-4-003-0009: 8424-000-500-0006

Reference # (if applicable): Additional numbers on pg. X A

AMENDMENT NO. I0 TO CONDOMNLJM DECLARATION AM) hWNDILLENT TO SURVEY MAP AND PLANS FOR

SUBPHASES 1C AND 1 G FOR THE VILLAS AT HARBOUR P O m , A CONDOh4TNRN

The undersigned Declarant of The Villas at Harbour Pointe, a condominium created under Condominium Declaration recorded under Snohomish County Auditor's No. 98071405" J J as amended by Amendment Nos. 1. 2. 3, 4, 5 , 6. 7, 8 and 9 filed under Snohomish County Auditor's Nos. 9807200570. 98 100 10 103, 98 121 00360, 9901 120296, 9902 1700 18, 9905070167, 199906220382. 19990917023 1 and 19991 1220339, respectively, (the "Declaration"), and Survey blap and Plans filed under Snohomish County Auditor's No. 9807145002, as corrected by Afidavit of Minor Correction of survey filed under Snohomish County Auditor's No. 9807200569, and as amended for Subphases lB, IC, 1D. 1E, IF, 1G and 1H filed under Snohomish County Auditor's Nos. 98 1001 5001, 9812105001, 9901 125002, 9902175001. 9905075002, 199906225049 and 199909175002, respectively, and as further amended for Phase 2 filed under Snohomish County Auditor's No. 19991 1225003, desiring to change the numbering of two Units in Building 15 of Subphase l C to correspond to changes in their addresses (Unit 10968 to 10971 and Unit 10969 to ]0962), to correct the Unit type of Unit 10937, and to correct the areas of Units 10933 and 10937 in Building 13B of Subphase lG,

(a) amends Schedule D in its entirety as attached hereto; and

(b) amends the portions of Sheets 3 and 4 of the Survey Map and Plans for Subphase 1C as attached hereto; and

(c) amends the portion of Sheet 3 of the Survey Map and Plans for Subphase 1G as attached hereto.


By ShIPII LLC. Managing member


COUNTY OF K/d& )

I certify that I know or have satisfactory evidence that J ~ f f /f~fld&l'l signed this instrument, on oath stated that such person was authorized to execute the, instrument and acknowledged it as the Managing bIember of SiMPII, LLC, a Washington limited liability company, the Managing Member ofPOSSESSION VIEW. L.L.C., a Washington limited liability company. to be the free and voluntary act of such panies for the uses and purpose; mentioned in the instrument.

Dated this /*' day of )nukLd ,2000.

dbZ&d (Signature of Notary)

(Legibly Print or Stamp Name of Notary) Notary public in and for the state of Washington, residing at L H e

My appointment expires $a/- U /

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RECORDER'S NOTE'. p o R T I ~ ~ ~ OF i H l S DocuMEM

Foster Pepper & Shefelman PLLC ARE POOR QUAL\TY FOR S C * ~ ~ ' ~ ~ .

Attention: Gary N. Ackerman 11 11 Third Avenue, Suite 3400 Seanle, Washington 98 101-3299 II\\\\\~I\\\I~\\\II\\~~\\\\\\\~\~\\!~~~\\~~~~~~~~~~ - b e ? 2000071 00567

07/10/2000 02:08 PM Snohomish p -0004 RECORDED C o u n t y

DECLARATION OF RESTRICTIVE COVENANT REGARDING HARDSURFACE FLOORING

I! -- L. >,; u >L', .-:k


Grantee: POSSESSION VIEW, L.L.C., a Washington limited liability company Additional names on pg. NIA

Legal Description: UNIT 11045, VILLAS AT HARBOUR P O m , A CONDOMINIUM, PER C O N D O M m m DECLARATION RECORDED UNDER SNOHOMISH C O W AUDITOR'S NO. 9807140533, AS AMENDED Official legal description

Assessor's Tau Parcel ID#: 8824-010-951-0005


DECLARATION OF RESTRICTIVE COVENANT REGARDING HARDSURFACE FLOORING

THIS DECLARATION is made this - day of ,2000, by POSSESSION VIEW, L.L.C., a Washington limited liability company ("Declarant"), as Declarant of The Villas at Harbour Pointe, a condominium (the "Condominium"), per Condominium Declaration recorded under Snohornish Courtney Auditor's File NO. 9807140533, as amended (the "Declaration"), and as Owner of Unit 11045 in the Condominium.

RECITALS:

A. Declarant has installed hardsurface flooring in the dining room, kitchen, nook and family room areas of the Unit.

B. Declarant is concerned about the effect of hardsurface flooring in Unit 11045 on the unit below (Unit 11037 in the Condominium) and is requiring the owner of Unit 11045 to keep a substantial portion of the floors of that Unit covered \ k i t h carpet or furniture.

FOR GOOD AND VALUABLE CONSTDERATION, the Declarant hereby declares that Unit 1 1045 of the Condominium to be subject to the following redct ive covenant:

1. The Owner of Unit 11045 shall, at a minimum and all times, maintain carpeting or furniture on the areas of Unit 11045 s h o w on the floor plan attached hereto as Exhibit A.

2. This restrictive covenant is for the benefit of Unit 11037, shall run with the larld, and shall be binding upon and inure to the benefit of the successors and assigns of the Declarant and all future owners of Units 11045 and 11037.

3. This restrictive covenant may be modified or amended only by written agreement of the owners of Units 11045 and 11037 recorded in the land records of Snohomish County, Washington.

POSSESSION VIEW, L.L.C.. a Washington limited liability company



COUNTY OF L3 \ Is'

I certify that I know or have satisfactory evidence that signed this instrument. on oath stated that such person was authorized to execute the instrument md acknowledged it as the Managing Member of SMPII, LLC, a Washington limited liability company. the Managing Member of POSSESSION VIEW, L.L.C., a Washington limited liability company, to be the frce and voluntary act of such parties for the uses and purposes mentioned in the instrument. - . .

I \

Dated this 3 0 day of -.A- ,2000.


(Legibly Print or Stamp Name of Notary) Notary public in and for the state of Washington, residing at Kc A r s . a x -4-u-

My appoinbnent expires Y /z r /aY

Foster Pepper & Shefelman PLLC Attention: Gary N. Ackerman 1 I I I Third Avenue, Suite 3400 Seattle, Washington 9s101-3299

CONFORMED COPY

2000071 00566 07 /1012000 02:08 PM Snohojnirh P. 0004 R ECOROED County

DECLARATION OF RESTRICTIVE COVENANT REGARDMG HARDSURFACE FLOORING

iC '

~ 3 1 ~ 6 4-1 Grantor/Declarant: POSSESSION VIEW, L.L.C., a Washington limited liability company

Additional names on pg. N/A

Grantee: POSSESSION VIEW, L.L.C., a Washington limited liability company Additional names on pg. NIA

Legal Description: UNIT 11041, VILLAS AT HARBOUR P O M E , A CONDOMINIUM, PER CONDOMINIUM DECLARATION RECORDED UNDER SNOHOMISH COUNTY AUDITOR'S NO. 9807140533, AS AMENDED Official legal description Same

Assessor's Tau Parcel ID#: 8824-010-951-0005

Reference # (if applicable): Additional numbers on pg. NIA

( ~ 1 ~ 1 6 0 nnt insularct ~OMPMY HAS surro lHlS OO(UMfH1 Of KICORO AS I (USIOMlR

(OU1lISY AN0 ACtfPlS HO LIABILITY f0R THE ~((UUCI OR VALIDITY 0 1 I H i OO(UMfH1.

DECLARATION OF RESTRICTIVE COVENANT REGARDING HARDSURFACE FLOORMG

THIS DECLARATION is made this - day of , 2000, by POSSESSION VIEW, L.L.C., a Washington limited liability company ("Declarant"), as Declarant of The Villas at Harbour Pointe, a condominium (the "Condominium")), per Condominium Declaration recorded under Snohornish Courtney Auditor's File NO. 9807140533, as amended (the "Declaration"), and as Owner of Unit 1 1041 in the Condominium.

RECITALS:

A. D e c l m t has installed hardsurface flooring in the kitchen, nook and family room areas of the Unit.

B. Declarant is concerned about the effect of hardsurface flooring in Unit 11041 on the unit below (Unit 11045 in the Condominium) and is requiring the owner of Unit 1 1041 to keep a substantial ponion of the floors of that Unit covered with carpet or furniture.

DECLARATION:

FOR GOOD AND VALUABLE CONSIDERATION, the Declarant hereby declares that Unit 1 1041 of the Condominium to be subject to the following restrictive covenant:

1. The Owner of Unit 11041 shall, at a minimum and all times, maintain carpeting or furniture on the areas of Unit 11041 shown on the floor plan attached hereto as Exhibit A.

2. This restrictive covenant is for the benefit of Unit 11045, shall run with the land, and shall be binding upon and inure to the benefit of the successors and assigns of the Declarant and ail future owners of Units 1 1041 and 11045.

3. This restrictive covenant may be modified or amended only by written agreement of the owners of Units 11041 and 11045 recorded in the land records of Snohomish County, Washington


By SMPII LLC, Managing member \

STATE OF WASHTNGTON ) ss.

COUNTY OF K ;nr 3

I certify that I know or have satisfactory evidence that Sca'tf signed this instrument, on oath stated chat such person was authorized to execute the instrument and acknowledged it as the Managing Member of SMPII, LLC, a Washington limited liability company, the Managing Member of POSSESSION VIEW, L.L.C., a Washington limited liability company, to be the free and voluntary act of such parties for the uses and purposes mentioned in the instrument.

Dated this 1 5 ~ day of -f - ,2000.

L Y A P L (Signamre of Notary)

(Legibly Print or Stamp Name of Notary) Notary public in and for the state of Washington, residing at t(LSLQ dc$ee,

My appointment expires 2 -26 ' 0

Return Address: IIIIIII UUIUIUI IIIII II IIIII UII Illll I I Ill Ill 20031 1210264 16 PGS 1 1 - 2 1 - 2 0 0 3 11:24am $ 3 4 . 0 0

Law Office of xris J. Sundberg SNOHOMISH COUNTY. WASHINGTON P.O. Box 1577 Mercer Island, WA 98040

Oocument Title(%) (or transactions contained therein):

1. ELEVFNTH AWNDMENT TO CONDOMINIUM DECLRRATION FOR VILLAS AT HARBOUR POINTE, A CONDOMINIW.

Grantor(s) (Last name first, then first name and initials)

1. VILLAS AT BARBOUR POINTE OWNERS ASSOCIATION 2. 3. 4. 5. [ ] Additional names on page - of document. Grantee(s) (Last name first, then first name and initials)

1 VILLAS AT HARBOUR POINTE OWNERS ASSOCIATION 2 . 3. 4. 5. [ ] Additional names on page - of document. Legal Description (abbreviated: i.e., lot, block, plat or section, township, range) VILLAS AT HARBOUR POINTE, A CONDOMINIUM, DECLARATION RECORDED ON JULY 1 4 , 1996 , UNDER AUDITOR'S PILE NO. 9807140533, RECORDS OF SNOHOMISH COUNTY, WASHINGTON.

( 1 Additional legal description is on page - of document. Assessor's Property Tax Parcel or Account Number: 008824-

Reference Number(s) of Documents assigned or released: [ 1 Additional references on page - of document.

ELEVENTH AMENDMENT TO CONDOMINIUM DECLARATION FOR VILLAS AT HARBOUR POINTE, A CONDOMINIUM

Whereas a certain Declaration for Villas at Harbour Pointe, a condominium, (the "Declaration"), was recorded on July 14, 1998, under Auditor's File No. 9807140533, records of Snohomish County, Washington, as amended by documents recorded under Auditor's File Nos.: 9807200570. 9810010103. 9812100360, 9901120296. 9902170018, 9905070167. 199906220382, 199909170231. J.99911220339 CmSL 20000302029t, and whereas under the provisions of Article 26. AMENDMENT OF DECLARATION SURVEY MAP AND PLANS. ARTICLES OR BYLAWS of the Declaration it may be amended, and

Whereas the procedures for such amendment have been followed,

Now, therefore, the undersigned does hereby certify that this amendment was approved by a majority of the Board of Directors of the Association prior to being submitted to the Owners and thereafter, after due and proper notice, the vote or consent in writing of Owners holding at least sixty-seven percent (67%) of the votes in the Association have been obtained and the consent of Eligible Mortgagees of Units to which at least fifty-one percent (51%) of the votes of Units subject to Mortgages held by Eligible Mortgages are allocated have also been obtained to hereby declare and adopt the following amendment to the Declaration:

The following new definitions are added to Declaration Article 1. DEFINITIONS, Section 1.1 Words Defined:

"Business" and "w" shall be construed to have their ordinary generally accepted meanings and shall include, without limitation, any occupation, work, or activity undertaken on an ongoing basis which involves the provision of goods or services to persons other than the provider's family and for which the provider receives a fee, compensation or other form of consideration, regardless of whether (a) the activity is engaged in full or part-time; (b) the activity is intended to or does generate a profit; and (c) a license is required to engage in the activity.

"Governina Documents" means the ~eclaration, the Articles of ~ncorporation, if any, the Bylaws and the Rules and Regulations of the Association adopted as provided in the Declaration and Bylaws, as these documents may be lawfully amended and/or adopted from time to time.

"Qccuuant" means anyone who occupies a Unit as a permanent residence or who stays overnight in any

Acheman Rev. &.1'0102 Page 1

Unit more than fourteen (14) days in any calendar month or mare than sixty (60) days per calendar year.

"Related m" means a person who has been certified in a written document filed by a Unit Owner with the Association to be the spouse, parent, parent-in-law, sibling, sibling-in-law, parent's sibling, or lineal descendant or ancestor of the Owner or the lineal descendant or ancestor of any of the foregoing persons, the officer, director or employee of any Owner which is a corporation, the trustee or beneficiary of any Owner which is a trust, or the partner or employee of any Owner which is a partnership.

"Tenant" means and includes a tenant, lessee, renter or other non-Owner Occupant of a Unit that is not occupied by its Owner. For the purposes of the Declaration, the term Tenant shall not include a Related Party.

Replace the text of Declaration Article 10. PERMITTED USES: MINTENANCE: CONVEYANCES, Section 10.1 Residential Use: Timesharina Prohibited. with the following:

10.1 $inale Familv Occu~ancv: Residential w. The Units shall be used exclusively for single family residential purposes, for the common social, recreational or other reasonable uses normally incident to those purposes and for purposes of operating the Association and managing the Condominium. Residential purposes include sleeping, eating, food preparation for on-site consumption by Occupants and guests, entertaining by Occupants of personal guests and similar activities commonly conducted within a residential dwelling, without regard to whether the Unit Owner or Occupant resides in the Unit as a primary or secondary personal residence, on an ownership, rental, lease or invitee basis. Timesharing of Units, as defined in RCW 64.36 is prohibited. No Trade or Business of any kind may be conducted in or from any Unit except that an Owner or Occupant residing in a Unit may conduct Business activity within the Unit only if:

lO.l(a) the existence or operation of the Business activity within the Unit is not apparent or detectable by sight, sound or smell from the exterior of the Unit;

merman RW. L M O ~ Z Page - 2

lO.l(b) the Business activity conforms to all zoning requirements for the Condominium;

lO.l(c) the Business activity does not involve the employment on the Condominium of persons who do not reside in the Condominium;

lO.l(d) the Business activity does not involve persons coming onto the Condominium who do not reside in the Condominium;

lO.l(e) the Business activity does not increase the liability or casualty insurance obligation or premium of the Association; and

lO.l(f) in the sole discretion of the Board, the Business activity is consistent with the residential character of the Association and does not constitute a nuisance or hazardous or offensive use.

Replace the text of Declaration Article 10. PERMITTED USES: MAINTENANCE: CONVEYANCES, Section 10.2 Leases with the following:

10.2 Rental of Units.

10.2.1 Rental Defined and Reaulated. The Rental of a Unit shall be governed by the provisions of the Declaration, including without limitation this Section. As used in the Declaration the terms "to rent", "renting" or "Rental" shall refer to and include the Leasing or Renting of a Unit by its Owner and to the occupancy of a Unit solely by a person or persons other than its Owner; provided that for the purpose of the regulation of Rentals as provided in this Section 10.2 and the purpose of tenant screening as provided in Subsection 10.13, the terms "to rent", "renting" or "Rental" shall not refer to the occupancy of a Unit by a Related Party. The rights of the Association and the obligations applicable to an Owner under Sections 10.2 and 10.13 shall be applicable to any Tenant who subleases a unit or enters into an assignment of a Lease for a Unit, and the obligations of a Tenant shall likewise be applicable to the subtenant or assignee of a Tenant in such a situation.

10.2.2 Minimum Lease Term Reauired. No Unit Owner shall be permitted to Rent or Lease less than

Ackarmsn RW. ~ 2 0 ~ 2 Page - 3

the entire Unit or to Rent or otherwise permit his or her Unit to be used for hotel or transient purposes, which shall be defined as Rental, occupancy or use by a Tenant or other non-Owner Occupant for an initial occupancy period of less than six (6) months. No Owner shall cause or allow the overnight accommodation of employees or business invitees in a Unit on a temporary or transient basis.

10.2.3 Lease Reauirement~. No Rental of a Unit shall be valid or enforceable unless it shall be by means of a written instrument or agreement between the Owner(s) and the Tenant(s) (referred to as a "Lease"). No Lease entered into after the date of recording of this Amendment shall be valid unless it bears the written approval by the Association granted prior to the occupancy of the Tenant. The occupancy of a Unit in the Condominium and every Lease shall be subject to the Governing Documents of the Association. By entering into occupancy of a Unit, a Tenant agrees to be bound by the Governing Documents. The Association shall have and may exercise the same rights of enforcement and remedies for breach of the Governing Documents against a Tenant as it has against an Owner. Each Lease shall contain language acknowledging the Association's rights and the Tenant's obligations under the Governing Documents. No Lease shall be for a term longer than one (1) year.

10.2.4 Lease Ap~roval. Except as provided in Subsection 10.2.6, prior to the Rental of a Unit in the Condominium to a Tenant, and prior to the renewal of any previously approved Lease, a Unit Owner shall submit to the Association a valid and binding Lease, executed by both the Owner and the proposed Tenant, and contingent only on the approval of the Association, together with a request for the written consent of the Association. The Association shall, within seven (7) days of receipt of such request, grant its consent to the Owner if:

10.2.4(a) the Owner has complied with Subsections 10.2.3 and 10.13 of the Declaration;

10.2.4(b) in the case of a renewal, the Tenant is in strict compliance with all provisions of the Governing Documents, and has not been found to be in violation of the Governing Documents following notice and

& k e r n ~ s v . &.20n2 Page - 4

opportunity to be heard more than once during the immediately preceding Lease term;

10.2.4(c) the Lease is in compliance with the requirements of the Declaration;

10.2.4(d) the Rental would not cause the aggregate number of all non-Owner occupied Units to exceed ten (lo) Units in the Condominium (referred to as the "Rental Ceiling"); provided, however, that:

10.2.4(d)(i) the Association shall not withhold consent for an Owner and a Tenant to renew a Preexisting Lease meeting the requirements of Subsection 10.2.6 merely because the number of non-Owner occupied Units is equal to or greater than the Rental Ceiling;

10.2.4(d)(ii) the Association shall not withhold consent for an Owner and a Tenant to renew a Lease which has previously been approved in the manner provided in this Subsection 10.2.4 merely because the number of non-Owner occupied Units is equal to the Rental Ceiling; provided, however, that the assignment or subletting of a Unit by a Tenant shall terminate the right to renew a previously approved Lease under this Subsection; '

1024(d)(iii) the Association shall not withhold consent for a mortgagee, institutional holder or servicer in possession of a Unit following a default in a mortgage or deed of trust (or foreclosure of the same), where such mortgagee, institutional holder or servicer first obtains possession subsequent to the date of recording of this Amendment, to rent a Unit merely because the Rental would cause the number of non-Owner occupied Units to exceed the Rental Ceiling;

10.2.4(d)(iv) the Association may grant a hardship exception as provided in Subsection 10.2.9 notwithstanding the fact that it would temporarily cause the number of non-Owner occupied Units to exceed the Rental Ceiling until the next Rental vacancy occurs.

10.2.5 Effect ofpental Ceiling. If an Owner wishes to rent a Unit but is prohibited from doing so because of the Rental Ceiling, the Association shall place the Owner's name on the Rental Waiting List provided for in Subsection 10.2.8.

10.2.6 Preexistina Leases. Within thirty (30) days from the date of notification to all Owners that this Amendment to the Declaration has been adopted by the necessary percentage of Owners, each Owner who has rented a Unit to a Tenant who was in occupancy prior to the date on which this Declaration Amendment was approved by the Owners shall file a copy of the Lease for that Unit with the Association. A Lease in effect on that date and submitted as required in this Subsection shall be referred to as a "Preexisting Lease". Any Tenant occupying a Unit pursuant to a Preexisting Lease shall be permitted to renew his or her Lease thereafter, provided that a copy of the Preexisting Lease is filed with the Association within the time period provided for in this Subsection and any subsequent renewals are submitted to the Association for approval prior to the expiration of the Lease term then in effect. The assignment or subletting of a Unit by a Tenant or the sale of a Unit by its Owner shall terminate the right to renew a Preexisting Lease under this Subsection 10.2.6.

10.2.7 Limitations on Consenf;. No consent to the Rental of a Unit shall be granted more than forty- five (45) days prior to the beginning of the Lease term for which consent is sought. Any consent granted by the Association shall automatically expire and terminate unless the Unit shall be occupied by the Tenant within thirty (30) days of the beginning of the term of the approved Lease.

10.2.8 Rental Waitins List. Except as provided in Subsection 10.2.4, if a Rental Waiting list exists, no Lease or Lease renewal shall be approved for an already rented Unit until all Owners who have previously applied for the approval of a Lease have been given the opportunity to rent their Units. Each Owner who has rented his or her Unit shall promptly give notice to the Association of any expiration and nonrenewal or other termination of a Lease. An Owner whose Lease has expired and not been renewed by the Tenant, or whose Lease has otherwise been terminated, or whose Unit will be

Acksrmm Rev. ~~20102 Page - 6

vacated and available for Rental within the next thirty (30) days, may give notice thereof to the Association and thereby have his or her name placed on the Rental Waiting List. The Owner in the next available position on the Rental Waiting List shall be notified, not more than sixty (60) days nor less than fifteen (15) days prior to the scheduled expiration and nonrenewal or other termination of a Lease on another Unit, of the opportunity to apply for consent to a Lease. That opportunity to rent shall be available to that Owner for a period of sixty (60) days from the date of that notice. If no request for approval to Lease is submitted during that period, that Owner's name shall be placed at the bottom of the Rental Waiting List, and the opportunity to rent shall be offered to the next highest person on the Rental Waiting List.

10.2.9 Hardshi~ Exce~tiw. Where, on written application from an Owner, the Board determines that a hardship exists whereby, due to circumstances beyond the control of the Owner, that Owner would suffer serious harm by virtue of the limitation on renting contained in Subsection 10.2.4, and where the Board further determines that a variance from the policies contained therein would not detrimentally affect the other Owners or the approval of the Condominium for secondary mortgage market financing, lender approval or VA or FHA approval, the Board may, in its discretion, grant an owner a waiver of the Rental Ceiling for a temporary period not to exceed six (6) months. In the discretion of the board, this hardship exception may be extended on written application of an Owner for one (1) additional period not to exceed six (6) months for good cause shown.

10.2.10 L ? L E L ~ ~ L QccuDancv Reauirecj. Notwithstanding anything herein to the contrary and except in the case of a mortgagee, institutional holder or servicer in possession of a Unit following a default in a mortgage or deed of trust (or foreclosure of the same), subsequent to the date of recording of this Amendment, no Owner shall rent a Unit until the Owner or a Related Party has continuously occupied the Unit as a primary residence for at least one year after taking ownership. The Board may, however, grant a hardship waiver under circumstances comparable to the provision for Hardship Exception found in Subsection 10.2.9.

Acbrman Raw. worn2 Page - 7

10.2.11 Rental WAssociation. If a Unit is rented by its Owner, the rent is hereby pledged and assigned to the Association as security for the payment of all Assessments due by that Owner to the Association. If the Assessments owed by the Owner of a rented Unit are delinquent, the Board may collect,and the Tenant shall pay to the Board, the rent for any Unit owned by the delinquent Owner, or that portion of the rent equal to the amount due to the Association. The Tenant shall not have the right to question the Board's demand for payment. Payment by the Tenant to the Association will satisfy and discharge the Tenant's duty of payment to the Owner for rent to the extent of the amount paid to the Association. No demand or acceptance of rent under this Section shall be deemed to be a consent or approval of the Unit rental or a waiver of the Owner's obligations as provided in the Declaration. The Board shall not exercise this power where a receiver has been appointed with respect to 3 Unit or Unit Owner; nor in derogation of the exercise of any rights to rents by a Mortgagee. If a Tenant fails or refuses to pay rent to the ~ssociation as provided for in this Section, the Association shall have the right to bring an action for unlawful detainer for non-payment of rent under RCW 59.12.030, and the costs and attorney fees incurred by the Association in connection with that action shall be collectable from the Tenant in that action, and from the Owner of the Unit in the same manner as any other Assessment.

Add new Sections 10.13 through 10.17 to Declaration Article 10. PERMITTED USES: MAINTENANCE: CONVEYANCES as follows:

10.13 Governina Documents to& Provided to Tenants. Each Unit Owner who Rents or Leases a Unit in the Condominium to a Tenant or allows the occupancy of a Unit by a Related Party shall provide that Tenant or Related Party with a copy of the Declaration and Rules. If the Unit Owner fails to provide evidence to the Association that it has done so, the Association may furnish a copy of these documents to the Tenant or Related Party and charge the Owner an amount to be determined by the Board for each document provided. Unless otherwise set by the Board, the copying charge shall be twenty-five cents ( $ . 2 5 ) for each page. The copying charge shall be collectable as a special assessment against the Unit and its Owner.

Merman Rev. &?Om2 Page - 8

10.14 Tenant Screening.

10.14.1 ADDlicabilitv. Section 10.14 shall be applicable to the Rental of any Unit in the Condominium other than to a Related Party.

10.14.2 Tenant Screenina Reauired. Any Unit Owner who desires to rent a Unit to a person (referred to as an "Applicant"), other than a Related Party, shall, prior to entering into a Lease, submit to the individual designated by the Association (referred to as the "Association's designee") for each Applicant a fully completed rental application, proposed Lease agreement and tenant screening report (in formats acceptable to the Association) from a reputable tenant screening service ("Service"), such Service also being acceptable to the Association.

10.14.3 Nature of Screenina Reauired. The Service shall take the following steps with regard to each applicant:

10.14.3(a)Obtainaconsumercreditreport on the Applicant;

10.14.3(b) Verify the Applicant's employment for the last two years;

10.14.3(c) ChecktheApplicantls rental history in its database and with all landlords during the last two years, either as reported by the Applicant or disclosed by the Service's investigation;

10.14.3 (d) Checkthepublicrecordsin the counties of the Applicant's residence for criminal convictions, bankruptcy and unlawful detainer actions involving the Applicant;

10.14.3(e)Reportsuchinfomationasis disclosed by its investigation to the Association's designee, who shall forward a copy of the information to the Unit owner and keep a copy for the Association's records.

10.14.4 Res~onsibilitv ~ Q L Tenant Selection. Neither the ~ssociation's designee nor the Association shall evaluate any information provided by the Service or in any way make a determination

Ackarman ~ s v . m 1 0 2 Page - 9

or recommendation as to the suitability of any Applicant. The selection of a suitable and appropriate Tenant shall be the sole responsibility of the Owner.

10.14.5 Confidentiality. The Association's designee and the Owner shall treat all information received as confidential and not disclose the contents of any report to the Applicant or any other person not permitted access to such information provided by the Service.

10.15 Non-Discrimination. The Governing Documents are expressly subject to all applicable laws pertaining to unlawful discrimination. In the case of any conflict between the two, the laws against unlawful discrimination shall prevail. Neither the Association nor any Unit Owner shall discriminate against any person with regard to the sale, rental or occupancy of a Unit in the Condominium on the basis of race, color, creed, national origin, age, sex, sexual orientation, religion, familial status, marital status, handicap or any other legally protected classification.

10.16 Notices re OccuDancv Chanaes. The presence and movement of persons in and out of Units shall be governed by the provisions of this Section 10.16.

10.16.1 Reaistration LPreexistina Occu~ants. All Occupants occupying Units at the time this Amendment is adopted must be registered with the Board within thirty (30) days of the adoption of this Amendment. As used in this Subsection, the term registration shall mean the filing by the Owner with the Board or its authorized representative of a written statement setting forth the following information:

10.16.l(a) the name, telephone numbers, and correct street address of the Owner of the Unit;

10.16.l(b) the Unit number and names and telephone numbers of all Occupants of the Unit other than the Owner; and

10.16.l(c) any other information regarding the Occupants of the Unit which shall be reasonably required by the Board.

Ackarman Rev. mR12 Page - 10

10.16.2 Pesistration Qccu~antz. All Owners must register new Occupants with the Board at the time they move in or within forty-eight (48) hours of meeting the definition specified in the Declaration. Nothing in this Subsection shall preclude an Occupant from submitting the registration required by this Subsection or the preceding Subsection.

10.16.3 Yudatina pf_ Recristration Information. All Owners shall advise the Board or the Manager of any changes in the registration information required to be provided in this Subsection on a current basis.

10.16.4 Notice - of Movincr Date. All Occupants shall provide the Board with reasonable prior notice of the date on which they expect to move into or out of a Unit.

10.16.5 Move-In &Move-Out m. The Board shall be authorized to assess a reasonable fee against any Owner and his or her Unit in connection with the moving of any new Occupant into a Unit, and in connection with the moving out of any Occupant from a Unit. The fee shall be paid prior to the move.

10.17 Liabilitv fQT m a a e s and Misconduct. Notwithstanding any other provision of this Declaration, each Owner shall be responsible for any expenses resulting from damage done to a Unit, the common elements, or the limited common areas, ar from any misconduct by that Owner, a Related Party or Tenant occupying the Owner's Unit, or the family, servants, employees, agents, visitors, licensees, or household pet of that Owner, Related Party or Tenant. The charges for repair or replacement of any damage and the expenses resulting from any such misconduct caused thereby shall be specially assessed to the Unit, shall be a lien upon the Unit and upon any appurtenant common elements, and shall be collectable as are other assessments.

Add the following new sections to Declaration Article 18 ENFORCEMENT OF DECLARATION. BYLAWS AND RULES AND REGULATIONS:

Section 18.3 Enforcement Aqainst Tenants. If a Tenant or a Related Party occupying a Unit fails to

Ackannan Aev. BRWZ Page - 11

comply with a provision of the Governing Documents, a Board Decision, then, in addition to all other remedies which it may have, the Board shall notify the Unit Owner of the violation(s) and demand that the same be remedied through the Unit Owner's efforts within thirty (30) days after the notice. If the violation(s) is(are) not remedied within the thirty (30) day period, the Unit Owner shall immediately, at his or her own cost, institute and diligently prosecute an unlawful detainer action under the Washington Residential Landlord Tenant Act or any successor statute on account of the violation(s). The action shall not be compromised or settled without the prior written approval of the Board. If the Unit Owner fails to fulfill the foregoing obligation, the Board shall have the right, but not the duty, to institute and prosecute the action as attorney-in-fact for the Unit Owner and at the Unit Owner's sole cost, including all attorney's fees incurred. The costs and expenses of the action, including attorney's fees, shall be recoverable from the Tenant, and in addition shall be deemed to constitute Assessments secured by a lien on the Unit involved as well as the personal obligation of the Unit Owner, and collection of those costs may be enforced by the Board in the manner prescribed in this Declaration. Each and every Unit Owner does hereby automatically irrevocably name, constitute, appoint and confirm the Association as his or her attorney-in-fact for the purposes described in this Section.

Section 18.4 Alternative DiS~ute Resolution.

18.4.1 Alternative Method for Resolvina Disputes. All Persons subject to this ~eclaration (except the Association, its officers, directors, and committee members), and any Person not otherwise subject to this Declaration who agrees to submit to this Article (collectively, "Bound Parties") agree to encourage the amicable resolution of disputes concerning the Condominium or the Governing Documents, without the emotional and financial costs of litigation. Accordingly, each Bound Party covenants and agrees to submit those claims, grievances or disputes described in Section 18.4.2 ("Claims") to the procedures set forth in Section 18.4 in lieu of filing suit in any court.

18.4.2 a s Unless specifically exempted below, all Claims arising out of or relating to the interpretation, application or enforcement of the Governing Documents, or the rights, obligations and duties of any Bound Party under the Governing Documents shall be subject to the provisions of Section 18.4. Notwithstanding the above, unless all parties thereto otherwise agree, the following shall not be Claims and shall p& be subject to the provisions of Section 18.4: (a) any suit by the Association against any Bound Party to enforce the provisions of the Governing Documents, including but not limited to enforcement of Assessment obligations under ~rticles 16 and 17; (b) any suit by the Association to obtain equitable relief (e.g., temporary restraining order, preliminary injunction, permanent injunction or specific performance) and such other ancillary relief in connection with enforcement of the Governing Documents; (c) any suit by a Bound Party for declaratory or injunctive relief which seeks a determination as to applicability, enforcement, clarification, or interpretation of any provisions of the Declaration; (d) any suit between Owners, which does not include the Association as a party; (e) any suit in which any indispensable party is not a Bound Party; and (f) any suit as to which any applicable statute of limitations would expire within 180 days of giving the Notice required by Section 18.4.3, unless the party or parties against whom the Claim is made agree to toll the statute of limitations as to such Claim for such period as may reasonably be necessary to comply with this Section. With the consent of all parties thereto, any of the above may be submitted to the alternative dispute resolution procedures set forth in Section 18.4.

18.4.3 Mandatory Procedures.

18.4.3.1 Notice. Any Bound Party having a Claim ("Claimant") against any other Bound Party ("Respondent") (collectively, the "Parties") shall notify each Respondent in writing (the "Notice"), stating plainly and concisely: (i) the nature of the Claim, including the Persons involved and Respondent's role in the Claim; (ii) the legal basis of the Claim (i.e., the specific authority out of which the Claim arises); (iii) the Claimant's proposed remedy; and (iv) that Claimant

~ e m m Rev. ma2 Page - 13

will meet with Respondent to discuss in good faith ways to resolve the Claim.

1 8 . 4 . 3 . 2 Neaotiation Mediation. (i) The Parties shall make every reasonable effort to meet in person and confer for the purpose of resolving the Claim by good faith negotiation. If requested in writing, accompanied by a copy of the Notice, the Board may appoint a representative to assist the Parties in negotiation. (ii) If the Parties do not resolve the Claim within 30 days of the date of the Notice (or within such other period as may be agreed upon by the Parties) ("Termination of Negotiations"), Claimant shall have 30 additional days to submit the Claim to mediation under the auspices of the any King County dispute resolution center or, if the Parties otherwise agree, to an independent agency or person providing dispute resolution services in the area. (iii) If Claimant does not submit the Claim to mediation within such time, or does not appear for the mediation, Claimant shall be deemed to have waived the Claim, and Respondent shall be released and discharged from any and all liability to Claimant on account of such Claim; provided, nothing herein shall release or discharge Respondent from any liability to any Person other than the Claimant. (iv) Any settlement of the Claim through mediation shall be documented in writing by the mediator and signed by the Parties. If the parties do not settle the Claim within 30 days after submission of the matter to the mediation, or within such time as determined by the mediator, the mediator shall issue a notice of termination of the mediation proceedings ("Termination of Mediation"). The Termination of Mediation notice shall set forth that the Parties are at an impasse and the date that mediation was terminated. ( v ) Within five days of the Termination of Mediation, the Claimant shall make a final written settlement demand ("Settlement Demand") to the Respondent, and the ~espondent shall make a final written settlement offer ("Settlement Offer") to the Claimant. If the Claimant fails to make a Settlement Demand, Claimant's original Notice shall constitute the Settlement Demand. If the Respondent fails to make a Settlement Offer, Respondent shall be deemed to have made a "zero" or "take nothing" Settlement Offer.

1 8 . 4 . 4 m n a 1 or Judicial ~etermination. If the Parties do not agree in writing to a settlement of

Ackorman ~ o v . ~ 0 1 0 2 Page - 14

the Claim within 15 days of the Termination of Mediation, either party may pursue appropriate relief by filing a Complaint with the Board seeking enforcement and/or by bringing an action in a court with jurisdiction over the Claim(s) being asserted.

18.4.5 Subject -n .y6? gh-i its own costs. including attorneys fees, incurred in performing negotiation and mediation obligations created by this Section 18.4. Each Party shall share equally all charges of the mediation.

18.4.6 Enforcemat of -. If the Parties agree to a resolution of any Claim through negotiation or mediation in accordance with Article 18.2 and any Party thereafter fails to abide by the terms of such agreement, then any other Party may file suit to enforce such agreement without the need to again comply with the procedures set forth in Section 18.4. In such event, the Party taking action to enforce the agreement shall be entitled to recover from the non-complying Party (or if more than one non-complying Party, from all such Parties pro rata) all costs incurred in enforcing such agreement, including, without limitation, attorney fees and court costa.

Dated this 2yr' day of @C 4-0 L L+-- , a. +-L4 Q . & , , J ~ L .

f l President. Villas at Harbour '/ Pointe k e r s Association

STATE OF WASHINGTON ) ) ss

COUNTY OF SNOHOKISH 1

I certify that I know or have {~ignAture) satisfactory evidence that ~ ~ n d b. 6r+l:d<

X a - e S b, FarJ\cc is the (Print ~ a m e ) person who appeared before me, and NOTARY PUBLIC in and for the State,of .. said person achowledged that h!%&& Washington, residing at &AKI 1k.Q signed this instrument, on oath stated My commission expires: 3 - 2 - b ~ ~ that was authorized to execute the instrument and acknowledged it as the Eresident of u s at REdlQ.U eoinre to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument.

Ac)rsmnn ~ n . W-~UUZ Page- 15

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Law Office of Kris J. Sundberg P.O. Box 1577 Mercer Island, WA 9 8 0 4 0 I AY Il Ill IIIIIIIIII IIII IIIIIIllllIllll IIIIIIIIII IIIIIIIII Ill

200409300060 3 PGS 0 9 - 3 0 - 2 0 0 4 09:21am $21 .OO SNOHOMISH COUNTY. WASHINGTON

Document Title(s) (or transactions contained therein):

1. TWELFTH AMENDMENT TO CONDOMINIUM DECLARATION FOR VILWLS AT HARBOUR POINTE, A CONDOMINIUM. . --

Grintor(s).-(.Last name first, then first name and initials)

1. VILLAS AT HARBOUR POINTE OWNERS ASSOCIATION 2. 3. 4 . 5 . [ ] Additional names on page - of document. Grantee(?,) (Last name first, then first name and initials)

l..VILLAS AT HARBOUR POINTE OWNERS ASSOCIATION 2. 3. 4 . 5 . [ ] Additional names on page - of document. Legal Des'cription (abbr-eviated: i.e., lot, block, plat or section, township, range) VILLAS AT HARBOUR POINTE, A CONDOMINIUM, DECLARATION RECORDED ON JULY 14, 1998, UNDER AUDITOR'S PILE NO. 9807140533, RECORDS OF SNOHOMISH COUNTY,. WASHINGTON.

[ ] Additional legal description is on page - of document. Assessor's Property Tax Parcel or Account Number: 0 0 8 8 2 4 -

Reference Number(s) of Documents assigned or released: [ ] Additional references on page - of document.

TWELFTH AMENDMENT TO CONDOMINIUM DECLARATION FOR VILLAS AT HARBOUR POINTE, A CONDOMINIUM

Whereas a certain Declaration for Villas at Harbour Pointe, a condominium, (the "Declaration"), was recorded on July 14, 1998, under Auditor's File No. 9807140533, records of Snohomish County, Washington, as amended by documents recorded under Auditor's File Nos. : 9807200570, 9810010103, 9812100360, 9901120296. 9902170018. 9905070167, 199906220382. 199909170231, 199911220339. 200003020291 and 200311210264, and whereas under the provisions of Article 26. AMENDMENT OF DECLARATION SURVEY MAP AND PLANS. ARTICLES ORBYLAWS of the Declaration it may be -- amended, and

Whereas the procedures for such amendment have been followed,

Now, therefore, the undersigned does hereby certify that this amendment was approved by a majority of the Board of Directors of the Association prior to being submitted to the Owners and thereafter, after due and proper notice, the vote or consent in writing of Owners holding at least sixty-seven percent (67%) of the votes in the Association have been obtained and the consent of Eligible Mortgagees of Units to which at least fifty-one percent (51%) of the votes of Units subject to Mortgages held by Eligible Mortgages are allocated have also been obtained to hereby declare and adopt the following amendment to the Declaration:

Add the following new section to Article 21. INSURANCE:

Section 21.9 Liability for Uninsured Amounts. ~otwithstanding anything herein to the contrary, and except to the extent that a lack of insurance results from the negligence or breach of a duty to insure of the Board:

(1) Liability for the amount of damage within the limits of any applicable insurance deductible or otherwise uninsured shall be the responsibility of an individual Unit Owner where the damage results from a negligent or intentional action or omission by an Owner, or that Owner's tenant, or the family, servants, employees, agents, visitors or licensees of that Owner or Tenant, or from the failure of, or failure to maintain, any portion of the Condominium, including any appliance, equipment, or fixture in a Unit, which that Owner is responsible to maintain in

Ackerman 7126102

Page - 1

good working order and condition.

(2) Except as provided in subparagraph (1) above, liability for the amount of damage within the limits of any applicable insurance deductible or otherwise uninsured shall be the responsibility of an individual Unit Owner where the damage involved is limited solely to damage to the Owner's Unit or the Limited Common Elements assigned to that Owner's Unit.

(3) Except as provided in subparagraphs (1) and (2) above, liability for the amount of damage within the limits of any applicable insurance deductible or otherwise uninsured shall be equitably prorated in the exercise of the Board's sole discretion between the Association and any involved Owners in proportion to the relative amounts of damage to the Common Elements and to each of the affected Units, including the Limited Common Elements assigned to such Unit or Units, where the damage involves both the Common Elements and/or one or more Units or the Limited Common Elements assigned to a Unit or Units.

Dated this 27% day of &&-AQh , 2004.

Pointe Owners Association


1 ss COUNTY OF SNOHOMISH 1

I certify that I know or have s tisfactory - evidence that (Print Name) (I C, tni.>\ec is the NOTARY PUBLIC in and for the state of

;!r~f v~h? appeared before me. and Washington, residing at Evece,hf said person acknowledged that he/she My commission expires: q-/- ZOO< signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the President pf_: Villas Harbour Pointe Owners Associatio~ to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument.


Foner Pepper & Shefelman P L x Attenbon Gary N A c k m a n 11 11 Thkrd Avenue. Sulte 3400

AMENDMENT NO 10 TO CONDOMlNlUM DECLARATION AND AMENDMENT TO SURVEY MAP AND PLANS FOR

SUBPHASES I C AND I G FOR 'THE VILLAS AT HARBOUR P O W . A CONDOMINIUM

c~iicr CCJ cb- 6 3/>f b

aantorlDcclarant POSSESSION VIEW, L L C , a Wash~ngtonllm~ted ltahlllty company Add~twnal names on pg

Grantee THE VILLAS AT HARBOUR POINTE, A CONWMINlUM Add~t~onal names on pg l!4lA

Legal Desa~ptlon CONDOMINIUM CREATED UNDER CONDOMMIUM DECLARATION RECORDW UNDER SNOHOMlSH COUNTY AUDITOR'S NO 9807140533, AS AMENDED Officlal legal descnptlan SBJIIS

AsRcssor's Tax Parcel 1D# 7617-M)&101-0008.7617-OW-100-0009.7G17MM-1DO-O5~ 2 0 2 8 W - 4 4 0 3 d W 9 . 8 4 ~ - 5 0 ~ ~ 6

Reference # (farnl~cable) U Add~t~onal numbers on pg k&4

SNOHOMISH,WA



Branch :TYS.User :ST32 Station id :ZHVF

AMENDMENT NO 10 TO CONDOMINIUM DECLARATION AND AMENDMENT TO SURVEY MAP AND PLANS FOR

SUBPHASES 1C AND 1G FOR T I E VILLAS AT HARBOUR POINT& A CONDOMINIUM

The unders~gned Declarant of The Villas at Harbour Polme, a ~ - a n d o m l ~ u m created unda Condominium Declaratmn recorded under Snohomish County Auditor's No 91107140533 as amended by Amendment Nos I, 2.3,4. 5 , 6 , 7, 8 and 9 filed under Snohomish County Audrtor's Nos 9807200570, 9810010103. 9812100360. 9901 1202%, 9902170018. 9905070167, 199906220382, 199909170231 and 199911220339, respectively. (the "Declaration"), and Survey Map w d Plans filed under Snohomish Ccunty Aud~tor's No 9807145002, as mmctcd by Amdavlt of Minor Correction of survey filed under S ~ h o m l s h County Audnor's No 9807200569. and u amended for Subphases IB. IC. ID. IE. IF, I t i and IH filed unda Snohomrsh County Auditor's Nos 9810015001. 9812105001, 9901125002, 9902175001. 9905075002, 199%225049 and 199909175002. respectively, and as Further amended for Phase 2 filed undo Snohomish County Au&tor's No 19991 1225003, desmng to change the n u m b m g of two Units In Bulldlng 15 of Subphasc 1C to correspond to changes in their addresses (Un~t 10968 to 10971 and Un~t 10969 to l0962), to correct the Unit typo of Un t 10937, and to corrrct the areas of Un~ts 10933 and 10937 m Bu~lding 138 of Subphase I G,

(a) amends Schedule D In its entirety as attached hereto, and

(b) amends the ponlons of Sheets 3 and 4 of the Survey Map and Plans for Subphase 1C as attached hereto, and

(c) amends the portion of Sheet 3 ofthe Survey Map and Plans for Subphase 1G as attached hereto

POSSESSION VIEW. L L C . a Wash~ngton l ~ m ~ t e d l~nblllty company

By SMPU LLC. Manag~ng membe~

SNOHOMISH,WA

Document: CCR 2000.03020291 Printed on 6/11/2012 4:10:29 PM



I catlfy that I know or have satisfactory ev~dence that Ad# {412r,&n slgned this instrument. on oath stated that such person was authorized to exearte the Instrument and acknowledged ~t astheManaglng Member of SMPII. LLC, a Washington llm~ted llnb~lity company. the Managlng Member of POSSESSION VIEW, L L C , a Washington limited Ilabll~ty company, to be the free and wluntaty a&I of such pa rks for the uses and purposes ment~ond in the Instrument

Dated this /& day of ;r/lat+d ,2000


( L q ~ h l y Pnnt or Stamp Name of Notary) Notary publlc In and for the state of Washington, res~ding al <@fi&&



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THE VILLAS AT HARBOUR POINTE RULES AND REGULATIONS FOR HARMONIOUS LIVING

Revised September 8,2009

STATEMENT OF PURPOSE

These rules are intended to create and maintain a cooperative and positive atmosphere for the mutual accommodation by all owners and occupants, to ensure our comfort, and to preserve the value of our investment at the Villas at Harbour Pointe.

Many of these rules are stated in the recorded Declaration of Covenants (Covenants, Conditions and Restrictions) for the Villas at Harbour Pointe. The intent of this document is to clarify, supplement and make accessible these rules. If any rule or description is in conflict with the recorded Declaration, the provision of the Declaration shall prevail.

These rules and regulations, as well as the Declarations and By-laws, apply to all homeowners, lessees and guests of the owner.

These rules may be added to, amended or repealed at any time by resolution of the Board of Directors as provided in the Declarations and By-laws.

RULE ENFORCEMENT

1. Any homeowner may file a con~plaint regarding a homeowner who they believe is not in compliance with these rules with any Board Member or directly to the Property Management Company.

2. Determination of whether a violation has occurred, and the appropriate remedy, may be delegated to the Propelty Management Company or to an agent or employee of the Association at the discretion of the Board of Directors.

3. The Property Management Company will keep a record of all complaints and offenses. A homeowner may in writing request and be allowed to view the owner's complaint file and may request the purging of complaints that are over two years old and that have not been repeated.

4. Upon determination that a homeowner is in violation of these rules, the Property . - hianagement Company will notify the offending owner in writing by certified mail asking that the homeowner correct the situation within a reasonable period of time.

5. If the correction is not made within a reasonable amount of time as stated in thefist warrrirrg rrotice, the Property Management Company will send a seco~zd rrotice in writing

September 8,2009 Rules and Regulations 1

by certified mail notifying the homeowner that a fine will be levied according to the fine schedule and the date the fine will be due if the violation is not corrected by the requested date in the second notice. The homeowner will also be advised in the second notice of a right to a hearing with respect to the violation and fine.

6. If the correction is not made within the time period allowed after the secorzd notice is sent, or if a homeowner has not requested a hearing, the Property Management Company will send a tlzird rzofice stating that a fine has been levied according to the fine schedule, and the date the fine is due. In addition, the Board may direct the Property Management Company to take action to correct the problem and charge the cost to the offending homeowner.

7. Once a fine has been levied, all fines and charges will be due at the same time as Association dues the first month following the violation. Late fees of $25 and interest at the rate of one percent (1%) per month will be charged on the outstanding balance.

8. Association Fine Schedule to be as follows: (1) First Offense: warning notice (2) Second Offense same violation: $100 Fine (3) Third offense same violation $250 fine (4) All subsequent offenses for the same violation shall carry a $500 fine.

APPEAL BY HOMEOWNER

9. A request for a hearing may be submitted in writing to the Board of Directors. The Board will give written notice to the homeowner which shall include a description of the offense, the proposed action and or fine, the time and the place of the hearing and whether testimony must be oral, written or both.

10. At the hearing the Homeowner shall have the right to give testimony subject to reasonable rules of procedure established by the Board to assure a prompt and orderly resolution. Evidence presented at the hearing shall be considered in decisions regarding fines and enforcement actions.

11. The Homeowner will be notified of the final decision in writing by the Property Management Company at the discretion of the Board of Directors.

ASSOCIATION DUES AND FEES

1. Association Dues and assessments are due by the loTh of each month. Dues and fees not paid by the loth shall be considered delinquent and the Homeowner shall be assessed a late charge of $25.00 and interest at the rate of one percent (1%) per month on the outstanding balance. Assessments delinquent ninety (90) days will be turned over to an attorney or collection agency and the mortgage company of the Homeowner will be notified of the delinquency. A lien may be placed on the property of any Homeowner in arrears over ninety (90) days.

September 8,2009 Rules and Regulations

QUIET ENJOYMENT

1. Owners shall exercise extreme care to avoid making noises that might disturb other residents. Specifically, care should be taken to avoid excessive sound emanating from a unit when using musical instruments, radios, televisions, amplifiers or any power equipment. In particular, sound system loudspeakers shall not be rigidly attached to the party wall with another Unit or the ceilings, walls, shelves or cabinets in a Unit in a manner that will induce objectionable vibrations into the structure of the building. If necessary, reasonable corrective action may need to be taken by the homeowner at the discretion of the Board of Directors. Loud conversations should be avoided when sitting on decks and patios in the evenings.

2. Quiet time should be observed from 10:OO PM to 8:00 AM.

3. Use of wind chimes is allowed, but checking with your immediate neighbors who may be affected is common courtesy. If it is disrupting their sleeps the Board may ask the owner to remove it.

4. Use common courtesy and consideration when engaging in activities that may affect your neighbors. Checking with your neighbors first should avoid or minimize conflicts or confrontations.

5. An owner of a constantly barking dog that is disturbing others will be asked to remedy the situation even to the point of being asked to remove the dog permanently from the complex.

6 . Owners of units that are above other units may not change the flooring from carpet to hard surface flooring without the approval of the Board, as stated in Section 25.3 of the Declaration.

7. Subject to compliance with local applicable zoning laws, the use of a unit as a home office is allowed, provided it does not involve regular visits by customers or clients. Business conducted within a unit must be confined to quiet, non-disruptive legal activities.

8. Owners may only hold a garage sale in conjunction with the ANNUAL MUKILTEO CITY-WIDE GARAGE SALE held every April. (Notice of this sale is advertised in the Mukilteo Beacon and other local media.) Exceptions may be made for owners who are moving and request special permission from the Board of Directors to hold a moving sale.


PETS

1. Homeowners shall control their pets at all times and comply with local leash laws. No dogs shall be allowed to run loose on the property and shall be on a leash and under the control of its owner when outside a unit. No dogs may be tied to a stake outside on either the common areas or the limited common areas (patios.) Cats may be allowed to roam free subject to their not becoming a nuisance.

2. Owners shall clean up after their pets, including excrement on any portion of the condominium.

3. No dog or cat houses, storage of pet food or feeding of animals is allowed on patios or any common areas.

4. Any pet that is a danger or a nuisance, i.e. constant barking, growling, snapping or biting, digging in the landscaping, continually roaming on common areas may be subject to permanent removal from the premises at the discretion of the Board upon notice to the Owner and with an opportunity for a hearing.

SALE OR LEASE OF UNITS

1. A Homeowner selling their unit will pay to the Property Management Company the current charge of $150 for a resale certificate which is required by law when selling a condominium unit. This charge is subject to change as necessary.

2. "For Sale" signs may only be placed in windows of units. No post signs shall be allowed at the entrance of the complex or in front of any unit. One small arrow sign on a stake stating "For Sale" may be placed at the entrance of the complex.

3. "Open House" sandwich boards may be placed at entrance and in front of unit during open house, but must be removed at end of the day.

4. Any owner selling their unit must inform the Board or the Property Management Company the name of the agency and agent handling the sale.

5. Any owner selling their unit must notify the Board or the Property Management Company when they have sold their unit and provide the names of the purchasers.

6. No "For Rent" signs may be placed in windows or anywhere on the property.

7. Any Homeowner leasing their unit must notify and provide a copy of the lease to the Board of Directors or the Property Management Company.

8. A Homeowner leasing their unit must provide a copy of the CC&Rs and the Rules and Regulations to the lessee and notify the lessee in writing and integrated as a part of the lease that the lessee must comply with all CC&Rs and the Rules and Regulations.


9. A Homeowner leasing their unit must provide the Board of Directors proof that a credit report and criminal background check on the lessee was ordered and received and deemed satisfactory.

10. A Homeowner leasing their unit is fully responsible for the actions of the lessee and will be subject to these Rules and Regulations, including fines, the same as if thy were living there themselves.

SAFETY, MAINTENANCE AND PROPERTY DAMAGE

1. Gasoline or any other highly flammable substance shall not be stored in any unit or garage in compliance with Washington State Law.

2. A maximum speed of 15 MPH shall be in effect for all vehicles driving throughout the complex.

3. Homeowners must secure any items placed on decks in such a way as to prevent accidental dislodgement during high winds. Homeowners shall avoid accidental injury to others and must not allow items to be dropped, thrown or to fall from decks.

4. Homeowners shall maintain decks to prevent water damage or dry rot damage to building and decks.

5. Homeowners shall use caution when burning candles, smoking tobacco products or other such potential fire hazards within the complex.

6 . Homeowners shall notify the Property Management Company when they see a potential problem which could lead to major long term damage.

7. Homeowners shall use outdoor grills a sufficient distance away from the buildings so as not to damage siding or to allow smoke to travel into neighbors' units.

8. Homeowners shall maintain appliances, such as water heaters, ranges, washers and dryers in good working order so as not to cause fire or water damage to their own or other units.

9. Any damage caused by the actions of owners, their guests, children, pets or hired workers to any Common ElementsIAreas is the financial responsibility of the Owner, including attorney fees and court costs if required to collect damages.

10. Owners shall not install wiring for electrical or telephone installation, television antennae, satellite dish, machines, etc. on the exterior of a building, on any common or limited element, or anything that protrudes through the walls of a unit or the roof of a building, except as authorized in writing by the Board.


11. Owners shall not install anything on the exterior of the building that would increase the cost of maintenance, or damage the building; i.e. holes in the siding, painting, or cause water intrusion, etc.

12. Owners shall take no action that will increase the maintenance costs or liabilities to the Association.

13. Central air conditioning is allowed to be installed in the unit at the owner's expense. The - placement of the condensing unit for the air conditioner must be approved by the board of directors. No window mounted air conditioners or evaporators are allowed including portable air conditioners that vent through a window or other opening visible from the exterior of the unit.

INSURANCE

1. Homeowners will be responsible for any damage in their unit up to the amount of the Association's current insurance deductible. No owner or lessee shall engage in or cause any activity that would increase association rates or insurance.

EMERGENCY ACCESS

1. Prior to leaving for any extended vacation a homeowner should notify the Property Management Company or a Board member of the dates they will be gone and whom they may contact for access to their unit in case of emergency, i.e. pipes freezing, water heater leaking, fire, burglar alarm going off, unusual or unauthorized activity around or in unit, etc. Homeowner shall maintain a minimum heat to prevent freezing.

LANDSCAPING

1. Planting by individual homeowner shall be allowed only in each homeowners' limited common area, such as borders within 18" of the concrete patios or within 18" of the building. Plants shall be limited to a growth of 24" high. No grass or existing plants may be removed or disturbed. No planting by individual homeowners shall present a maintenance problem, interfere with or increase the cost to the contracted landscape contractor. The individual homeowner shall take full responsibility for care and maintenance. Any plantings that are overgrown or not maintained properly shall be removed by the homeowner or at the discretion of the Board of Directors, the cost of which will be charged to the Homeowner. (It is suggested that Homeowners choosing to plant may want to notify the landscape company in person or by posting a small sign saying that the plants will be maintained by Homeowner. There is a risk that he landscapers may not recognize the difference between weeds and flowers, and my pull them.)

2. Container planting by individual homeowners will be allowed. Containers will be limited to patios, balconies and decks. Hanging containers may not be hung over other unit


owner's decks or driveways. No items may be placed on the decks or balconies that would block the view of another unit.

3. Plants and containers must be maintained for attractive appearance by individual homeowner. Dead plants and weeds must be removed. Broken, decaying or unsightly containers must be removed by homeowner.

4. Homeowners may submit a landscape or plantings plan to the Board of Directors for approval for anything that is not within the allowed area. The decision will be made at the Board of Directors' discretion based on the attractiveness of the plan, the cost of maintenance and who pays for and maintains responsibility. Plans must include the responsibility of the homeowner to return the landscaping to its original condition in cast of the sale of the unit, or written agreement signed by the new owner that they will abide by the original landscaping agreement.

5. No actions may be taken by individual homeowners that would increase the cost of the landscape maintenance contract, without Board approval.

DECORATIONS, APPURTANCES AND HOBBIES

1. Owners shall not hang towels, garments, rugs, etc. from the windows or from any of the decks or facades of their units.

2. Individual homeowners may decorate the exterior of their unit during holidays. All decorations shall be removed within two weeks after the holiday ends.

3. Homeowners may fly the American Flag for appropriate holidays. It is to be installed on a post and not on the siding shingles.

4. Wind-socks and decorative banners are not allowed unless part of holiday decorations, and must be hung from posts and not on siding shingles.

5. All window coverings visible from the exterior of the building must be neutral color, such as white, off white, or cream. Natural color (light stains only) wood blinds are allowed. Hanging temporary window treatments, such as sheets is not allowed.

6. No exterior window coverings, such as bamboo shades, roller shades or awnings are allowed, nor are they allowed to be hung from decks as sun protection.

7. No sunflower seeds or other bird seed bird feeders are allowed because of the additional landscaping clean-up costs and because the food attracts rats, which are a serious problem in the Mukilteo area. Liquid filled hummingbird feeders may be used.


GARBAGE

1. Homeowners shall be responsible for their owner recycling, trash and garbage containers, which shall be kept in their garage at all times except on garbage pick-up day. Containers may be placed outside the evening before garbage will be picked up as long as the containers are secured to avoid debris being scattered or blown about the area due to wind or animals.

2. If a homeowner will be out of town and unable to place garbage out on pick-up day, they may request that their neighbor set their containers out on pick-up day and bring the containers in on pick-up day or miss the pick-up that week. Containers may not be put out on any other day than pick-up day, nor left out after the pick-up day.

3. Owners shall comply with the requirements of the garbage collection utility for company.

HOT TUBS

1. All requests for installation of spas or hot tubs must be approved by the Board of Directors, except those initially approved by the developer in the Declaration.

2. Maximum size is seven (7) feet by seven (7) feet.

3. Restricted to limited common area patios (not decks) which are not openly visible from windows of other units, common roadways with the Villas, public roadways or common park areas.

4. Are subject to obtaining permits for installation from the city of Mukilteo if required and will meet all applicable codes including health, safety, electrical concerns, etc.

5. Owner shall adequately maintain the unit and not allow unreasonable noise or odors that would be offensive to other owners.

6 . Use will be limited to the hours of 8:00 AM to 10:OO PM.

7. Tub will be covered when not in use.

8. Owner shall be responsible for safety concerns and will provide evidence of liability insurance with the Homeowners' Association as an additionally named insured.

9. Owner shall be responsible for any damages caused to common areas or other units.


PARKlNG AND VEHICLES

Each unit in the Villas has a garage as part of the unit.

1. In addition, certain Units have Limited Common Element driveways which may be used for parking operable passenger motor vehicles.

2. The garages may be used for normal household storage; provided it does not affect the ability to park an automobile in the garage.

3. All open parking spaces or areas are intended for guest parking subject to rules and regulations adopted by the Board.

4. The driveways and open parking spaces may not be used for parking trucks (other than small pick-up trucks), trailers, or recreational vehicles, or for any purposes (other than parking passenger motor vehicles).

5. Parking on the streets of the Condominium, except in designated parking spaces or areas, is prohibited unless permitted by rule and regulation adopted by the Board.

6 . The Board may direct that any vehicle or other thing improperly parked or kept in a parking space be removed, and if it is not removed the Board may cause it to be removed at the risk and cost of the Owner thereof.

7. Owners and their visitors shall not block common drive areas. In areas where driveways and auto-courts are shared by two or more owners, homeowners shall not block another homeowner from entering or leaving their driveway or garage. No parking is allowed in frorit of garages in common aulo-cuurls shared with two units in the Belmonte homes.

8. Mukilteo City Fire code prohibits any on-street parking. Any vehicles improperly parked within the condominium complex are subject to a fine and towing by the City and or the Association at the direction of the Property Management Company or Board of Directors.

9. All vehicles parked in driveways or guest parking must be operative and if not operative, must be removed within 24 hours. The Board shall have the right to remove from the premises any such vehicle considered after placing a notice on the vehicle for 48 hours. Removal of vehicle shall be at the expense of the Owner.

10. Exclusive of washing a vehicle, no work on vehicles that will create or cause oil and gas or other substances to spill on the roads or driveways will be permitted. The Owner shall be responsible for any damage to the road or driveway surface caused by a violation of this rule.

11. A committee of five volunteers from areas around The Villas is granted the authority to. place notices of violation on vehicles in violation of the declaration and/or house rules.


12. If guest parking is to be used more than three consecutive days by visitors, a permit must be applied for and approved by the parking committee or board. Guest permits greater than a consecutive 14 day period must be approved by the Board. Guest permits issued more than twice in a calendar year for the same guest must be approved by the Board.

13. Guest parking use by residents will only be approved for projects that require vacating the garage in units with shared driveways and in other units vacating the driveways. A pass must be requested for any resident vehicle that requires parking more than eight hours and/or overnight. The Board has the right to fine and tow resident vehicles in violation of this house rule.

14. Parking of trucks, trailers, or recreational vehicles is allowed in driveways for the purposes of loading and unloading such vehicles. Parking of such vehicles shall be allowed for a period of 24 hours.

These rules and regulations were adopted at a duly called meeting of the board of directors on September 8,2009 and shall become effective on October 1,2009.


AFTER RECORDING, RETURN TO:Barker • Martin, P.S.719 - 2nd Avenue, Suite 1200Seattle, WA 98104

THIRTEENTH AMENDMENT TO CONDOMINIUM DECLARATIONFOR THE VILLAS AT HARBOUR POINTE,

A CONDOMINIUM

GRANTOR(S): THE VILLAS AT HARBOUR POINTEOWNERS ASSOCIATION, a Washingtonnonprofit corporation

GRANTEE(S): THE VILLAS AT HARBOUR POINTE,A CONDOMINIUM; VILLAS AT HARBOURPOINTE OWNERS ASSOCIATION, aWashington nonprofit corporation; THEGENERAL PUBLIC

LEGAL DESCRIPTION: THE VILLAS AT HARBOUR POINTE,A CONDOMINIUM, PER THAT CERTAINCONDOMINIUM DECLARATION RECORDEDAT SNOHOMISH COUNTY RECORDING NO.9807140533, AS AMENDED OF RECORD

REFERENCE NOS. OFRELATED DOCUMENTS:

9807140533, 9807145002

AMENDMENT TO DECLARATION – 1

THIRTEENTH AMENDMENT TO CONDOMINIUM DECLARATIONFOR THE VILLAS AT HARBOUR POINTE,

A CONDOMINIUM

WHEREAS, on July 14, 1998, a certain Condominium Declaration was recorded in the realproperty records of Snohomish County at Snohomish County Auditor (“SCA”) No. 9807140533(as amended, the “Declaration”), and a Survey Map and Plans was recorded contemporaneouslytherewith at SCA No. 9807145002 (as amended, the “Survey Map”), thereby submitting the realproperty legally described in the Declaration and Survey Map to the Washington CondominiumAct, Chapter 64.34 of the Revised Code of Washington (RCW 64.34 et seq., as amended), andcreating The Villas at Harbour Pointe, A Condominium (the “Condominium”). Since its originalrecording, the Declaration has been amended twelve times by instruments recorded at thefollowing Snohomish County Auditor Nos.: 9807200570, 9810010103, 9812100360,9901120296, 9902170018, 9905070167, 199906220382, 199909170231, 199911220339,200003020291, 200311210264 and 200409300060. Declarations of Restrictive CovenantsRegarding Carpeting were recorded at SCA Nos. 199908260157, 199908260158, 199908260159and 19990820160.

WHEREAS, the Board believes it is in the best interests of the Association to make certainamendments to the Declaration to help ensure compliance with HUD condominium projectcertification guidelines; and

WHEREAS, consistent with the Declaration, including Article 26 thereof, not less than a majorityof the Board of Directors (the “Board”) of The Villas at Harbour Pointe Owners Association (the“Association”) approved the Declaration amendments herein, and, after notice to all of theOwners entitled to vote thereon duly given, not less than sixty-seven percent (67%) of the votesin the Association consented in writing to the amendments herein;

WHEREAS, consistent with the Declaration, including Article 26 thereof, after thirty (30) daysnotice to all of the Eligible Mortgagees, if any, duly given by certified or registered mail, returnreceipt requested, not less than fifty-one percent (51%) of Eligible Mortgagees have expressly orimpliedly consented to the Declaration amendments herein which Eligible Mortgagees have theright to approve; and

NOW THEREFORE, the President and Secretary of the Association certify the Declaration tohave been amended in the following particulars:

[Double-underline indicates additions, strikethrough indicates deletions]

A. Section 10.2 of the Declaration was completely amended and replaced by the EleventhAmendment to the Declaration. Declaration Subsection 10.2.10, added to the Declaration byway of said Eleventh Amendment, is hereby amended as follows:

10.2.10 [Subsection Number Reserved for Future Use and to PreserveSubsection Numbering] One Year Occupancy Required. Notwithstanding anything herein to thecontrary and except in the case of a mortgagee, institutional holder or servicer in possession of aUnit following a default in a mortgage or deed of trust (or foreclosure of the same), subsequent tothe date of recording of this Amendment, no Owner shall rent a Unit until the Owner or a Related


Party has continuously occupied the unit as a primary residence for at least one year after takingownership. The Board may, however, grant a hardship waiver under circumstances comparable tothe provision for Hardship Exception found in Subsection 10.2.9.

B. A new Section 10.14 was added to the Declaration by the Eleventh Amendment thereto.Declaration Section 10.14 of the Declaration is hereby amended as follows:

10.14 Tenant Screening. Tenant screening shall not be a prerequisite for Associationlease approval; all references to tenant screening in the Declaration and in this Section 10.14 shallbe interpreted accordingly. The Association shall pass or enforce no rule requiring that aprospective tenant be approved by the Association and/or its agents, including but not limited tomeeting creditworthiness standards.

10.14.1 Applicability. Section 10.14 shall be applicable to the Rental ofany Unit in the Condominium other than to a Related Party.

10.14.2 Tenant Screening Required. Any Unit Owner who desires torent a Unit to a person (referred to as an "Applicant"), other than a Related Party, shall, prior toentering into a Lease, submit to the individual designated by the Association (referred to as the"Association's designee") for each Applicant a fully completed rental application, proposed Leaseagreement and tenant screening report (in formats acceptable to the Association) from a reputabletenant screening service ("Service"), such Service also being acceptable to the Association.

10.14.3 Nature of Screening Required. The Service shall take thefollowing steps with regard to each applicant:

10.14.3(a) Obtain a consumer credit report on the Applicant;

10.14.3(b) Verify the Applicant's employment for the last twoyears;

10.14.3(c) Check the Applicant's rental history in its database andwith all landlords during the last two years, either as reported by the Applicant ordisclosed by the Service's investigation;

10.14.3(d) Check the public records in counties of the Applicant'sresidence for criminal convictions, bankruptcy and unlawful actions involving theApplicant;

10.14.3(e) Report such information as is disclosed by itsinvestigation to the Association's designee, who shall forward a copy of the informationto the Unit owner and keep a copy for the Association's records.

10.14.4 Responsibility for Tenant Selection. Neither the Association'sdesignee nor the Association shall evaluate any information provided by the Service or in anyway make a determination or recommendation as to the suitability of any Applicant. Theselection of a suitable and appropriate Tenant shall be the sole responsibility of the Owner.


10.14.5 Confidentiality. The Association's designee and the Owner shalltreat all information received as confidential and not disclose the contents of any report to theApplicant or any other person not permitted access to such information provided by the Service.

C. This Amendment to the Declaration shall take effect upon recording. The terms of thisAmendment to the Declaration shall control over and implicitly amend any inconsistentprovision of the Declaration, including the “Table of Contents” and the Bylaws of theAssociation. The Declaration shall remain in full force and effect and shall include thechanges herein.//////////////////////

THE VILLAS AT HARBOUR POINTEOWNERS ASSOCIATION

By:__________________, its President

STATE OF WASHINGTON )) ss.

COUNTY OF SNOHOMISH )

On this ______ day of June, 2015, personally appeared before me,___________________________ known to me to be the President of THE VILLAS ATHARBOUR POINTE OWNERS ASSOCIATION, the non-profit corporation that executed thewithin and foregoing instrument, and acknowledged the instrument to be the free and voluntaryact and deed of the Association, for the uses and purposes therein mentioned, and on oath statedthat he/she was authorized to execute the instrument.

DATED this __________ day of June, 2015.

(Signed) (Print Name)

Notary Public in and for the State of Washington,My commission expires:


THE VILLAS AT HARBOUR POINTEOWNERS ASSOCIATION

ATTEST: The above amendment was properly adopted.

By:__________________, its Secretary

STATE OF WASHINGTON )) ss.

COUNTY OF SNOHOMISH )

On this ______ day of June, 2015, personally appeared before me,__________________________ known to me to be the Secretary of THE VILLAS ATHARBOUR POINTE OWNERS ASSOCIATION, the non-profit corporation that executed thewithin and foregoing instrument, and acknowledged the instrument to be the free and voluntaryact and deed of the Association, for the uses and purposes therein mentioned, and on oath statedthat he/she was authorized to execute the instrument.

DATED this __________ day of June, 2015.

(Signed) (Print Name)

Notary Public in and for the State of Washington,My commission expires:

133156_6

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THIS EVIDENCE OF COMMERCIAL PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTSUPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTERTHE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEENTHE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST.

BUSINESS PERSONAL PROPERTYBUILDING ORPROPERTY INFORMATION (Use REMARKS on page 2, if more space is required)

THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDINGANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EVIDENCE OF PROPERTY INSURANCE MAYBE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONSOF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

LOCATION/DESCRIPTION

LENDERS LOSS PAYABLE

MORTGAGEE CONTRACT OF SALE LENDER SERVICING AGENT NAME AND ADDRESS

NAME AND ADDRESS

ADDITIONAL INTEREST

AUTHORIZED REPRESENTATIVE

If YES, LIMIT:

Actual Loss Sustained; # of months:If YES, LIMIT:BUSINESS INCOME

If YES, indicate value(s) reported on property identified above: $

DED:

DED:

DED:

DED:

DED:

- Coverage for loss to undamaged portion of bldg

- Incr. Cost of Construction

- Demolition Costs

SPECIALBROADBASICPERILS INSUREDDED:COMMERCIAL PROPERTY COVERAGE AMOUNT OF INSURANCE:

DED:

%If YES,

PERMISSION TO WAIVE SUBROGATION IN FAVOR OF MORTGAGEHOLDER PRIOR TO LOSS

FLOOD (If Applicable)

COVERAGE INFORMATION

NOYES

BLANKET COVERAGE

TERRORISM COVERAGE Attach Disclosure Notice / DEC

IS THERE A TERRORISM-SPECIFIC EXCLUSION?

IS DOMESTIC TERRORISM EXCLUDED?

DED:

REPLACEMENT COST

AGREED VALUE

COINSURANCE

EQUIPMENT BREAKDOWN (If Applicable)

ORDINANCE OR LAW

WIND / HAIL (If Subject to Different Provisions)

EARTH MOVEMENT (If Applicable)

$

LIMITED FUNGUS COVERAGE

FUNGUS EXCLUSION (If "YES", specify organization's form used)

N/A

RENTAL VALUE

If YES, LIMIT:

If YES, LIMIT:

If YES, LIMIT:

If YES, LIMIT:

If YES, LIMIT:

If YES, LIMIT:

© 2003-2009 ACORD CORPORATION. All rights reserved.ACORD 28 (2009/12)The ACORD name and logo are registered marks of ACORD

Page 1 of 2

CANCELLATIONSHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BEDELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

1/3/2017

The Partners Group Ltd11225 SE 6th St., Suite 110Bellevue WA 98004

The Villas At Harbour Pointe, A CondominiumVillas at Harbour Pointe Condoc/o SUHRCO Residential Properties, LLCBellevue, WA 98007

Holyoke Mutual Ins Co – #WA020012701001 (Prop)QBE Specialty Ins Co – #ESE145700 (EQ/FL)General Security Indemnity – #TR00014860203716(EQ/FL)

See Above

10/01/2016 10/01/2017

SUHRCO Residential Properties, LLC2010 156th Avenue NE, Suite 100Bellevue WA 98007

10901-11053 Villa Monte Drive, Mukilteo, WA 98275

425-455-5640

425-455-6727 [email protected]

X35,696,509 10,000

X X 12

XX

XXX

XX Guaranteed Replacement Cost

XX

X 35,696,509 10,000

XX 6,000,000 10,000

X 6,000,000 10,000

X 20,000,000 5%

X 20,000,000 50,000

X Evidence of Insurance

Property; Earthquake/Flood

X

X

X

X

EVIDENCE OF COMMERCIAL PROPERTY INSURANCE REMARKS - Including Special Conditions (Use only if more space is required)

ACORD 28 (2009/12) Page 2 of 2

Certificate Holder is named as Mortgagee / Loss Payee. Coverage is "All In" including Tenant Improvement andBetterments (TIB), walls in and interior build out. Wind / Hail coverage is included and is subject to the propertydeductible. (96 Residential Units - 23 Buildings)

Earthquake / Flood - Policy Term 7/1/16 to 10/1/17

CERTIFICATE HOLDER

© 1988-2009 ACORD CORPORATION. All rights reserved.ACORD 25 (2009/01)

AUTHORIZED REPRESENTATIVE

CANCELLATION

The ACORD name and logo are registered marks of ACORD

INSURED

NAIC #

INSURER E:

INSURER D:

INSURER C:

INSURER B:

INSURER A:

INSURERS AFFORDING COVERAGE

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATIONONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATEHOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND ORALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.

PRODUCER

OTHER

LOCJECTPRO-POLICY

GEN'L AGGREGATE LIMIT APPLIES PER:

OCCURCLAIMS MADE

COMMERCIAL GENERAL LIABILITY

GENERAL LIABILITY

PREMISES (Ea occurrence) $DAMAGE TO RENTEDEACH OCCURRENCE $

MED EXP (Any one person) $

PERSONAL & ADV INJURY $

GENERAL AGGREGATE $

PRODUCTS - COMP/OP AGG $

$RETENTION

DEDUCTIBLE

CLAIMS MADEOCCUR

EXCESS / UMBRELLA LIABILITY

$

$

$

AGGREGATE $

EACH OCCURRENCE $

COVERAGES

DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS

INSRLTR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE

DATE (MM/DD/YYYY)POLICY EXPIRATIONDATE (MM/DD/YYYY) LIMITS

ADD'LINSRD

AUTOMOBILE LIABILITY

ANY AUTO

ALL OWNED AUTOS

SCHEDULED AUTOS

HIRED AUTOS

NON-OWNED AUTOS

PROPERTY DAMAGE(Per accident) $

COMBINED SINGLE LIMIT(Ea accident) $

BODILY INJURY(Per accident) $

BODILY INJURY(Per person) $

ANY AUTO

GARAGE LIABILITY

OTHER THANAUTO ONLY:

EA ACC

AGG

$

$

AUTO ONLY - EA ACCIDENT $

WC STATU-TORY LIMITS

OTH-ER

E.L. EACH ACCIDENT

E.L. DISEASE - EA EMPLOYEE

E.L. DISEASE - POLICY LIMIT

$

$

$

ANY PROPRIETOR/PARTNER/EXECUTIVE

If yes, describe underSPECIAL PROVISIONS below

(Mandatory in NH)OFFICER/MEMBER EXCLUDED?

WORKERS COMPENSATIONAND EMPLOYERS' LIABILITY Y / N

DATE (MM/DD/YYYY)CERTIFICATE OF LIABILITY INSURANCE 1/3/2017

The Partners Group Ltd11225 SE 6th St., Suite 110Bellevue WA 98004

Phone: 425-455-5640 Fax: 425-455-6727

The Villas At Harbour Pointe, A CondominiumVillas at Harbour Pointe Condoc/o SUHRCO Residential Properties, LLC2010 NE 156th Avenue, Suite 100Bellevue WA 98007

Holyoke Mutual Insurance Co IGreat American Alliance Ins CLiberty Mutual Ins Co

AX

X

X

WA020012701001 10/1/2016 10/1/2017 1,000,000300,0005,0001,000,0002,000,0002,000,000

A

XX

WA020012701001 10/1/2016 10/1/20171,000,000

BX

X 0

UM30076782 10/1/2016 10/1/2017 10,000,00010,000,000

CB Crime (Fidelity)

Directors & Officers

CAC0131600215UM30076782

10/1/201610/1/2016

10/1/201710/1/2017

Crime LimitCrime DeductibleD&O Limit

1,000,0002501,000,000

SUHRCO Residential Properties, LLC2010 156th Avenue NE, Suite 100Bellevue WA 98007

14206

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THEPOLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITHRESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBEDHEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLEDBEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANYWILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THECERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAILSUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OFANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES.

Certificate Holder is named as Additional Insured as respects the Named Insured. Severability of Interests /Separation of Insureds applicable. Property Manager is included as an insured on the Fidelity / Crime policy. (96Residential Units - 23 Buildings)

ACORD 25 (2009/01)

IMPORTANT

If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statementon this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies mayrequire an endorsement. A statement on this certificate does not confer rights to the certificateholder in lieu of such endorsement(s).

DISCLAIMER

This Certificate of Insurance does not constitute a contract between the issuing insurer(s), authorizedrepresentative or producer, and the certificate holder, nor does it affirmatively or negatively amend,extend or alter the coverage afforded by the policies listed thereon.

Monthly Financial Documents


Other Document


Villas at Harbour Pointe Owners Association

Board of Directors Meeting

Mukilteo City Hall, 11930 Cyrus Way, Mukilteo, WA 98275

Tuesday, November 15th, 2016

Villas Website - http://thevillasmukilteo.com

I. Meeting called to order – 6:35 PM

II. A Quorum was established

Board member's attendance/absence:

o Tom Hartley, President (present)

o Mike Mansfield, Vice President (present)

o Stephanie Allen, Member at Large (present)

o Steven Pendleton, Secretary (present)

o Dick Baldwin, Treasurer (present)

o Richard Perry, Association Manager (AM) – SUHRCO (present)

III. Addition and Changes to the Agenda – Inside home fire sprinkler inspections

IV. Meeting Minutes Approval – October 2016 Board Minutes

A motion was made, seconded and the board voted unanimously to approve the October 2016 BOD minutes.

V. Financial Report

Copies of the 2016 Monthly financials through October 2016 were provided for the board and HO’s review.

End of October 2016: Total Operating Funds $25,785, Insurance Reserve Account, $10,222, Reserve Funds

$744,503 for a total of $780,511.

Operating income was $42,796 at the end of October with Total Operating Expenses at $51,628

YTD Net Income was at -$20,480 ending October 2016.

VI. Management Report: Items for review will be covered as necessary under Committee Reports and Old/New Business.

VII. Committee Reports

MC

1. BLDG. #10 Update – Nearing completion. A motion was made, seconded and passed unanimously by the

board to transfer funds from reserves to operating income to pay Bodine’s bill.

2. Driveway Survey – Driveway repairs to be added to future Reserve Study. A proposal from AM necessary to

determine amount necessary. Survey located on Google drive for reference.

3. Roofing Contract Review – A motion was made, seconded and passed unanimously by the board to

approve the next phase roofing contract subject to attorney and MC review/approval. 4. BLDG. #8 Update – Complete less checking for any further leaks after recent rains.

5. Pressure Washing Update – Bid review by MC showed an extremely high cost at $5396.00. MC will review

other options.

LC

1. Landscape Contract Update – Current contract up for bid, a process that is approached every 3 years. 3

proposals will be reviewed and a proposal presented to the board. Board asked for an update by end of Jan.

2017.

2. Tree Removal/Replant Update – Tree Solutions Co. was paid to complete a survey of the Villas property.

Their suggestions will be taken into account as a long range plan is developed.

3. Long term plan update – See above

4. BLDG. #10, Villas HO to update landscaping – Earthworks will confirm price. A motion was made,

seconded and passed unanimously to approve landscape change at the owner’s expense with EW doing

the work and oversight provided by the LC.

FC

1. A big thank you from the Villas to Peter Anderson for all the effort in setting up a successful Earthquake

Preparedness Seminar on 10/21/16 at The Mukilteo Rosehill Center.

VIII. Old Business

Surveying of The Villas property line – A portion of the Villas east and west property boundaries will be surveyed

and signs posted indicating no trespassing. This will help stop future incursions on Villas property by outside

sources.

A/C Install Requests – BLDG. #3 Central A/C - complete. BLDG. #14 Ductless A/C – The condition was lifted to

have internal unit recessed. Only conditions will be to avoid all pipes and wire exposure on outside of HO’s unit.

IX. New Business

December 2016 Board Meeting – Cancelled. If issues are important enough to need attention, board will meet.

Transfer from reserves – Covered above.

Special assessment status – AM stated that coupon books have previously been mailed. Payments already being

received by SUHRCO.

Internal home fire sprinkler inspections – Board asked AM to make sure that SUHRCO is the contact that the fire

department has on file. Records need to be updated, especially when this next inspection might be required. The

inspection could be as soon as Dec. 2016. This inspection will be very important as it requires giving HOs notice

of inspections in their homes. AM will assume responsibility for this item.

X. Motion was made, seconded and approved unanimously to adjourn the regular board meeting and move into the Home

Owner’s Forum at 7:00 PM.

XI. Homeowner’s Forum

HO expressed a concern which has been brought forward in the past. There is a delay causing some payments sent

to SUHRCO to be shown as late, incurring HO late fees. HO asked the board and AM to look into this closely as

there could be legal troubles in the future if this continues. SUHRCO uses a lock box through a third party which

collects checks and then sends them to SUHRCO.

XII. Homeowner’s Forum ended at 7:05 PM.

Submitted by Steven Pendleton

Villas at Harbour Pointe Owners Association 2017 Budget Ratification

Tuesday, November 15, 2016 Mukilteo City Hall, Mukilteo, WA. 98275


II. Roll Call - A Quorum was established Board member's attendance/absence:

o Tom Hartley, President (present) o Mike Mansfield, Vice President (present) o Stephanie Allen, Member at Large (present) o Steven Pendleton, Secretary (present) o Dick Baldwin, Treasurer (present) o Richard Perry, Association Manager (AM) – SUHRCO (present)

III. Proof of Notice of Meeting/Waiver of Notice

Mailed to all Villas at Harbour Pointe residents/owners along with explanatory letter.

IV. Presentation of the 2017 Budget

V. Ratification of the 2017 Budget

Villas HOs present signed onto the Sign In sheet provided by SUHRCO

HOs were asked if there were any questions. 1. HO asked for clarification on Budget columns “Projected Actual” and “Actual”. AM explained

Projected Actual gives the actual costs if all items and costs under Reserves were to be funded.

Villas 2017 Budget was ratified.

VI. Adjournment

A motion was made, seconded and passed unanimously to adjourn the Budget Ratification meeting at 6:35 PM.




Tuesday, October 18th, 2016





o Tom Hartley, President (absent)


o Stephanie Allen, Member at Large (present)

o Steven Pendleton, Secretary (absent)



III. Addition and Changes to the Agenda – Removed Water Meter update from Old Business

IV. Meeting Minutes Approval – September 2016 Board Minutes

A motion was made, seconded and the board voted unanimously to approve the September 2016 BOD minutes.

V. Financial Report

Copies of the 2016 Monthly financials through September 2016 were provided for the board and HO’s review.

End of September 2016: Total Operating Funds $24,320, Insurance Reserve Account, $10,222, Reserve Funds

$731,032 for a total of $765,574.

Operating income was $42,886 at the end of September with Total Operating Expenses at $36,697

YTD Net Income was at -$11,648 ending September 2016.

VI. Management Report: None given, items covered under Committee Reports, Old Business and New Business.


MC

1. Roofing Contract – Authorized increase of not to exceed 3%.

2. Painting Contract – Signed and deposit paid.

3. Bldg 8 – Gutter installation completed correctly and sheet rock installed in garage ceiling.

4. Bldg 8 – Fire Sprinkler repair approved

5. Bldg 10 – Sagging roof and drainage issues: Bodine will handle the sagging roof, EW the drainage

6. Bdg 8 – downspout on Fire Sprinkler room was reinstalled by MC Chair at no cost to HOA.

LC

1. 5 Sumacs were blown over, located by the trail below bldg. 4 & 5, EW will evaluate whether to remove or

save.

2. New Co-Chair Susan Brown, introduced.

3. Plantings behind bldg. 17 & 13A complete and bill submitted to be paid.

4. LC will review bids for Landscaper to include EW, Premier, and Plantscapes. LC is waiting for Plantscapes

bid.

FC

1. Insurance renewal completed and in effect through October, 2017

2. Villas 2017 budget has been completed, accepted and is ready to be ratified at the November Budget Meeting.

3. A reminder of the Villas Town Hall Meeting is scheduled for Friday October 21, 2016 @ 6 PM in the

Rosehill Community Center. An updated agenda was announced for this meeting.

VIII. Old Business

Illegal tree cutting on Villas property –indemnification document was signed in order to receive the check from

the offending party. EW will replant after the check is received.

Deck bubbles – Update: 6 decks need repair. Bid has been received and the amount is too high. Waiting for more

bids to consider spot repair instead of complete resurfacing. Time frame anticipated will be to repair this Spring.

Special Assessment – Coupons, letter and instructions for payment were mailed.

Back flow testing of water meters – Completed and all systems passed.

Re-grading behind Bldgs. 8 & 9 – project to be done in phases. Asking for 2nd

bid just for drainage issues.

A/C installation requests – 1. Bldg 3 central, (HO option #6) condenser to be relocated and piping to be removed

from siding. 2. Bldg 13A portable, approved. 3 Bldg 14 Ductless installation given a conditional approval to be

installed per published procedures to be given to HO (no ducting etc to be installed on the exterior, interior units

must be recessed etc.).

IX. New Business

Pressure washing of common elements - 2 bids received and sent to MC for recommendation.

Surveying of The Villas property line between the Villas and Saratoga Reach. Ongoing issues with Saratoga

Reach HO trespassing and Villas trees and shrubs is causing an issue. Bids are requested to conduct the survey.

Skateboarding on Villas Roads – Insurance Broker was contacted and stated that there is no liability from

Skateboarders being injured since our roads are private. Suggestion to HO, if you see a skateboarder, inform

he/she that our roads are private, they are trespassing and must immediately cease their activity.

Driveway repairs – MC stated that a survey was completed about a year ago, and MC will update the survey.

X. Motion was made, seconded and approved unanimously to adjourn the meeting and move into the Home Owner’s

Forum at 7:08 PM.


HO asked about the elastomer deck that had been painted. It will most likely have to be completely redone.

HO asked if there was a way to remove cigarette smoke smell from her unit.

HO asked if the Fire Sprinkler repair in her unit was approved and so it was.

HO asked about barking dog that occurs during quiet time. HO was requested to send complaint direct to

Association Manager.


Submitted by Stephanie Allen




Tuesday, September 20, 2016





o Tom Hartley, President (present)


o Stephanie Allen, Member at Large (absent)

o Steven Pendleton, Secretary (present)



III. Addition and Changes to the Agenda – None

Thank you to all who helped make the The Villas Picnic in the Park a Great Success!

IV. Meeting Minutes Approval – August 2016 Board Minutes

A motion was made, seconded and the board voted unanimously to approve the August 2016 BOD minutes.

V. Financial Report

Copies of the 2016 Monthly financials through August 2016 were provided for the board and HO’s review.

End of August 2016: Total Operating Funds $15,479, Insurance Reserve Account, $10,222, Reserve Funds

$723,955, for a total of $749,656.

Operating income was $42,601 at the end of August with Total Operating Expenses at $52,024.

YTD Net Income was at -$27,837 ending August 2016.

VI. Management Report

Special Assessment Coupons – On order, no ECD at this time.

Pressure washing – This refers to curbs, guest parking spaces and retaining walls. RW Anderson along with a

couple other companies will bid on this work.

Painting contract – Barker Martin, Villas attorney is reviewing the contract currently and should have a final

report by Friday, 9/23/16. A motion was made, seconded and unanimously approved to sign a Contract with

LC Jergens Painting Co Inc for the first phase of Villas painting project in 2017 subject to approval of the

contract terms by the Villas attorney.

BLDG. #8 – Sheetrock and gutter installation scheduled for 9/20/16: Blue Wave Construction was on site today to

begin this work.

BLDG. #8 fire sprinkler repair – AAA and Harbro both worked to repair this leak and the repair was completed.

BLDG. #10 – Update: Repair to the sagging roof is scheduled to begin the first week of October 2016. Screw

jacks will be incorporated. Landscaping of the surrounding area can begin after the repair is complete.


MC

1. In the absence of MC chair, the AM reported above on new and current projects and situations.

2. The MC will function with one chairperson now. The Villas board would like to extend a warm thank you to

Aggie for all her hard work and efforts in not only creating this committee but serving well over 18 months.

LC

1. Bids are being entertained by several companies currently with Premier coming out next to review the Villas

site.

2. Tree Solutions walked the Villas site with the LC and will prepare a report of their findings including water

saving methods such as specific sod removal and irrigation changes, tree trimming/removal, shrub

replacement, wood chips instead of mulch around trees and shrubs, etc. A motion was made, seconded and

unanimously approved to ratify a prior decision to use Tree Solutions Inc. to assess our current

landscaping situation and to issue a report making recommendations for our immediate and long term

needs.

FC

1. Insurance renewal – Villas insurance policy after review and recommendations will remain as is. A motion

was made, seconded and unanimously approved by the board to renew the insurance policy as it now

stands.

2. Villas 2017 draft budget was reviewed and after recommendations to the board a final draft has been

recommended with an overall increase in monthly dues of 5%. A motion was made, seconded and

approved unanimously by the board to adopt the draft budget for 2017 as reviewed by the FC for

approval by HOs in the November 2016 budget meeting.

3. A Villas Town Hall Meeting is scheduled for Friday October 21, 2016 @ 6 PM in the Rosehill Community

Center. The subject will include Earthquake Preparedness and related topics with special speakers ie:

Mukilteo Fire Chief, a Red Cross representative and insurance specialist to name a few.

VIII. Old Business

Illegal tree cutting on Villas property – A motion was made, seconded and approved unanimously by the

board to authorize our attorney’s Barker Martin to negotiate with the parties involved to reach a

settlement regarding the illegal cutting of two trees on Villas property.

Deck bubbles – Update: 6 decks need repair. A contractor reviewed these areas and report will be issued on

9/21/16. Suggestion was made to possibly wait until spring to do repairs after the rainy season.

Special Assessment – Update: covered previously

Water meter – Update: Board member gave current status of project. Originally meters in HO’s garages were used

to read individual water meters. How do we accurately measure what each HO consumes currently? Each building

has one meter that measures consumption, not individual HO use. Some of our meters also include irrigation use.

Board member is preparing a report that will attempt to answer many of these questions including costs if Villas

were to make water meter changes.

Back flow testing of water meters – Update: Board member will accompany vendor on walk through at 10 AM,

9/27/16. Some questions still remain about where all these meters are located and the hope is to understand

exactly how the water meter back flow test is conducted.

IX. New Business

Re-grading behind BLDGs. #8 & 9 – This very swampy area during rainfall and excessive irrigation is being

reviewed. The water appears to flow around the front of the BLDG, and could possibly be causing drainage

problems to lower units. Premier Lawn Service will be on site Thursday 9/22/16 to review this problem and make

recommendations.

BLDG. #7 illegal tree trimming by uphill neighbor – Villas attorney has issued a cease and desist order to this

neighbor. No lawsuit will be filed. Tree Solutions was asked to make recommendations on tree/shrub

replacement.

X. Motion was made, seconded and approved unanimously to adjourn the meeting and move into the Home

Owner’s Forum at 7:01 PM.


HO asked about home interior fire alarms and if they were electrical. These alarms are electrical with a battery

backup. The fire alarm will start to chirp when the battery needs replacing.


Villas at Harbour Pointe Owners AssociationBoard of Directors Meeting

Mukilteo City Hall, 11930 Cyrus Way, Mukilteo, WA 98275Tuesday, August 16, 2016



II. A Quorum was establishedBoard member's attendance/absence:

o Tom Hartley, President (present)o Mike Mansfield, Vice President (present)o Stephanie Allen, Member at Large (absent)o Steven Pendleton, Secretary (absent)o Dick Baldwin, Treasurer (present)o Richard Perry, Association Manager (AM) – SUHRCO (present)

III. Addition and Changes to the Agenda – None

IV. Meeting Minutes Approval – July 2016 Board Minutes

A motion was made, seconded and approved for the July 2016 BOD minutes to be approved

V. Financial Report

Copies of the 2016 Monthly financials through July were provided for the board and HO’s review.

End of July 2016: Total Operating Funds $25,607; Insurance Reserve Account, $10,222; Reserve Funds$712,099; for a total of $747,928

Operating income was $42,818 at the end of July with Total Operating expenses at $35,780.

YTD Net Income was at -$20,024 ending July 2016.

VI. Management Report

BLDG. #8 – met with residents and agreed on an action plan to sheetrock rear of garage wall leaving a smallopening to monitor any further water intrusion. The rain gutter will be moved to the side of the building,removing water from the south side of the roof. Landscape will be determined at a later date.

Deck bubbles – 6 units responded to this problem which will be fixed through the Blue Wave company.

Gutter cleaning – Late Oct. early Nov 2016 was decided on as a good time to do gutter cleaning. Board memberwill put together a report of findings for which buildings could use this interim cleaning after cleaning gutters inMarch 2016. Damaged gutters will be replaced. AM has received several Villas concerns over current cloggedgutters to date.

Illegal tree cutting behind BLDG. #20 – Attorney recommends total settlement of $22,140.00 before lawyer’sfees. Villas can’t ask for lawyer’s fees from defendant. A motion was made, seconded and unanimouslyapproved by the board to go with our attorney’s recommendations.


MC

1. Chair reported on 2 recommendations for BLDG. #10 sagging roof. Earthworks should do the landscaping afterBodines construction work is complete. Jack Screws will be reviewed with Bodine and a decision will be made at

a later date. A motion was made, seconded and approved unanimously by the board to move forward withthese proposals at a cost of $3800.00 + tax, with a review of Jack Screws at a later date.

2. A motion was made, seconded and approved by the board to regrade the side lawn of BLDG. #10 usingEarthworks at a cost of $4162.00

3. Chair reported on painting contract and said that further review is necessary to correct several mistakes that areincluded. MC tentatively set up a meeting to go over the contract on Monday 8/22/16 @ 11 AM.

LC

1. Chair asked if the price of the BLDG. #10 re-landscaping included sod. Affirmative.

2. EW came over 3 Saturdays in July to catch up on weeding and other pruning activities. This activity was alsocompleted in 2015.

3. LC has arranged volunteers from several buildings to act as representatives and report on landscape activitiespro and con.

4. LC will use a better tracking system similar to the Villas Action Tracker to monitor landscape dates andprojects to make sure activities do not fall off the radar.

5. Every three years the landscape contract comes up for bid. This is due in 2017. AM will offer to othercompanies along with EW.

6. Board asked if the LC could arrange to have the Villas irrigation system mapped for future reference.

FC

1. New co-chair was introduced.

2. Villas 2017 draft budget should be ready for review by the FC early September 2016.

3. During the July 2016 BOD, a disaster preparedness town hall meeting was suggested. This idea will be

followed through with a date possibly in early 2017. An announcement will be made during the Nov 2016

Budget meeting. Chair will arrange agenda, speakers, date and time with the board’s approval.

4. The Villas second insurance policy comes up for renewal Dec. 1, 2016.

VIII. Old Business

Window Cleaning – Follow-up on problems, comments, recommendations for future: Some carelessness by

workers contributed to scratches on railings and broken items on deck. Reminders to company used next year

would be appreciated.

Illegal tree cutting on Villas property – Update: previously covered in meeting.

Deck bubbles – Update: previously covered in meeting.

Various drainage issues – Update: 4 areas present current problems.

o A plan is in place for BLDG. #10.

o BLDG. #11 could possibly use a grate leading to a French drainage system to alleviate the water buildup.

o BLDGs. #8 & 9 will require further monitoring and investigation.

Water meter – Update: Board member gave current status of project. Companies are being reviewed not only for

costs involved but also who could work best with the equipment already in place at the Villas. Electronic

monitoring seems to best way to go at this point. Volunteers, if interested would be appreciated in helping with

this in depth project.

IX. New Business

Villas web site – Slight changes will be noticed on the site as we clean it up and make it easier to use and view.

Back flow testing of water meters – Scheduled for October 2016: Please note, these are external to HOs units.

Villas budget process in work – scheduled for approval November 2016.

Special Assessment letters and coupons will be mailed to all HOs by the end of August 2016.

A motion was made, seconded and approved unanimously by the entire board to transfer funds fromsavings to operating in the amount of $12,604.75 to pay 3D roofing bills.

Next Villas board meeting will be held at Mukilteo City Hall on Tuesday 9/20/16.

X. Motion was made, seconded and approved unanimously to adjourn the meeting and move into the HomeOwner’s Forum at 7:13 PM.


HO reported that tree cutting had occurred behind BLDG. #7. In confronting the people, HO was told that theyhad permission from the city of Mukilteo and the Villas to accomplish this. Further investigation is required inthis situation. In trying to contact SUHRCO about this, there was either no response or little recognition of leftmessages and Emails asking for help and direction.

HO stated that his Villas dues checks are being processed at a very slow and sometimes late date causing concernthat late fees may be incurred.

HO stated concern over landscape situation behind BLDG. #20. The back yard is their only view which currentlylooks very shabby and unkempt. Assurances to HOs were that work would continue in this area similar to the lastlandscape company and why hasn’t this been done. Landscape chair answered that due to different schedules andwildlife protection, EW has set up their system for accomplishing this task and only does a a “Rough Mow” ofthis area. Concerns will be addressed along with trees being trimmed by unknown subjects and debris being lefton Villas property.

HO asked about late fees inaccurately incurred from prior management company, some time ago and trying to getthem correctly processed. Nothing has been done and the fees continue to mount. Board member will look intothis.


Reserve Study


Washington Office Corporate Office 505 South 336th St., Ste 620 Calabasas, CA Federal Way, WA 98003 Regional Offices TEL 253/661-5437 Phoenix, AZ

FAX 253/661-5430 San Francisco, CA

[email protected] Denver, CO

www.reservestudy.com Honolulu, HI Las Vegas, NV Miami, FL

Update “No-Site-Visit” Reserve Study

The Villas at Harbour Pointe Mukilteo, WA

Report #: 9721-9

For Period Beginning: January 1, 2017

Expires: December 31, 2017

Date Prepared: November 18, 2016

Association Reserves WA, LLC 11/18/2016

Hello, and welcome to your Reserve Study!

his Report is a valuable budget planning tool, for with it you control the future of your association. It contains

all the fundamental information needed to understand your current and future Reserve obligations, the most significant expenditures your association will face.

ith respect to Reserves, this Report will tell you “where you are” and “where to go from here”.

In this Report, you will find;

1) A List of What you’re Reserving For

2) An Evaluation of your Reserve Fund Size and Strength

3) A Recommended Multi-Year Reserve Funding Plan

More Questions?

Visit our website at www.ReserveStudy.com or call us at:

800/733-1365

T

W

Association Reserves WA, LLC 11/18/2016

Table of Contents

3-Minute Executive Summary.............................................................................i Reserve Study Summary .........................................................................................................i Reserve Component List – Table 1......................................................................................... ii

Introduction, Objectives, and Methodology .....................................................1 Which Physical Assets are Funded by Reserves?..................................................................2 How do we establish Useful Life and Remaining Useful Life estimates? ................................2 How do we establish Current Repair/Replacement Cost Estimates?......................................2 How much Reserves are enough?..........................................................................................3 How much should we contribute? ...........................................................................................4 What is our Recommended Funding Goal? ............................................................................4

Projected Expenses ...........................................................................................5 Expense Graph – Figure 1 ......................................................................................................5

Reserve Fund Status & Recommended Funding Plan ....................................6 Funding Plan Graph – Figure 2...............................................................................................6 Cash Flow Graph – Figure 3 ...................................................................................................7 % Funded Graph – Figure 4....................................................................................................7

Table Descriptions .............................................................................................8 Reserve Component List Detail – Table 2...............................................................................9 Contribution & Fund Breakdown – Table 3 ...........................................................................10 30 Year Reserve Plan Summary – Table 4...........................................................................11 30 Year Reserve Plan Year by Year Detail – Table 5 ...........................................................12

Accuracy, Limitations, and Disclosures.........................................................18

Terms and Definitions......................................................................................18

Association Reserves WA, LLC 11/18/2016 i

3-Minute Executive Summary

Association: The Villas at Harbour Pointe Assoc. #: 9721-9 Location: Mukilteo, WA # of Units: 96 Report Period: January 1, 2017 through December 31, 2017

Results as-of 1/1/2017:

Projected Starting Reserve Balance: ................................................... $767,836 Fully Funded Reserve Balance: ....................................................... $1,942,680 Average Reserve Deficit (Surplus) Per Unit:.......................................... $12,238 Percent Funded: ......................................................................................... 39.5% 100% 2017 Monthly “Full Funding” Contributions: .............................. $22,000 70% 2017 Monthly “Threshold Funding” Contributions: ..................... $17,600 Baseline contributions (min to keep Reserves above $0):................... $11,800 Recommended 2017 Special Assessment for Reserves:.............................. $0

Most Recent Reserve Contribution Rate:............................................... $11,667

Economic Assumptions: Net Annual “After Tax” Interest Earnings Accruing to Reserves........... 1.25% Annual Inflation Rate................................................................................... 3.00%

• This is an “Update No-Site-Visit” Reserve Study, based on a prior Report prepared by Association Reserves for your 2016 Fiscal Year. No site inspection was performed as part of this Reserve Study, which was prepared by, or under the supervision of a credentialed Reserve Specialist (RS™).

• Your Reserve Fund is currently 40% Funded. This means the association’s special assessment & deferred maintenance risk is currently medium. The objective of your multi-year Funding Plan is to fund your Reserves to a level where you will enjoy a low risk of such Reserve cash flow problems.

• Based on this starting point and your anticipated future expenses, our recommendation is to increase your Reserve contributions to within the 70% to 100% level as noted above. 100% “Full” and 70% contribution rates are designed to achieve these funding objectives by the end of our 30-year report scope. No assets appropriate for Reserve designation were excluded. See appendix for component details; the basis of our assumptions.

Association Reserves WA, LLC 11/18/2016 ii

Table 1: Executive Summary 9721-9

Useful Rem. Current Future

Life Useful Average Average

# Component (yrs) Life (yrs) Cost Cost

Site / Grounds

100 Concrete/Curb - Repair/Replace 5 0 $5,305 $6,150

120 Asphalt - Remove/Replace (2017) 35 0 $34,800 $97,922



120 Asphalt - Resurface 35 17 $154,500 $255,365

121 Asphalt - Seal/Repair 5 2 $18,550 $19,680

160 Pole Lights - Replace 30 11 $21,650 $29,969

205 Mailboxes/Structure - Replace 25 16 $8,910 $14,298

Building Exterior & Systems

500 Roof: Comp Shingle - Replace (2016) 35 34 $288,000 $786,789



510 Gutters/Downspouts - Repair/Replace 35 25 $154,500 $323,489

515 Chimney Covers/Flue Caps - Replace 40 30 $37,600 $91,265

520 Siding: Hardie/Cedar - Replace 50 40 $2,115,000 $6,899,210

525 Exterior Surfaces - Clean (2022) 5 5 $10,600 $12,288



530 Exterior Surfaces - Paint (2017) 10 0 $161,000 $216,371



535 Windows/Glass Doors - Replace 50 40 $608,000 $1,983,319

540 Elastomeric Decks - Seal/Repair 6 2 $38,150 $40,473

545 Composite Decks - Repair/Replace 30 20 $221,500 $400,054

555 Deck Rail - Replace 50 40 $139,000 $453,423

560 Exterior Lights - Replace 20 8 $20,600 $26,095

965 Fire Alarm Panels - Repair/Replace 25 6 $42,250 $50,449

26 Total Funded Components

Note 1: a Useful Life of “N/A” means a one-time expense, not expected to repeat. Note 2: highlighted line items are expected to require attention in the initial year

Assoc. 9721-9

Association Reserves WA, LLC 11/18/2016 1

Introduction

A Reserve Study is the art and science of anticipating, and preparing for, an association’s major common area repair and replacement expenses. Partially art, because in this field we are making projections about the future. Partially science, because our work is a combination of research and well-defined computations, following consistent National Reserve Study Standard principles.

The foundation of this and every Reserve Study is your Reserve Component List (what you are reserving for). This is because the Reserve Component List defines the scope and schedule of all your anticipated upcoming Reserve projects. Based on that List and your starting balance, we calculate the association’s Reserve Fund Strength (reported in terms of “Percent Funded”). Then we compute a Reserve Funding Plan to provide for the Reserve needs of the association. These form the three results of your Reserve Study.

Reserve contributions are not “for the future”. Reserve contributions are designed to offset the ongoing, daily deterioration of your Reserve assets. Done well, a stable, budgeted Reserve Funding Plan will collect sufficient funds from the owners who enjoyed the use of those assets, so the association is financially prepared for the irregular expenditures scattered through future years when those projects eventually require replacement.

Methodology

For this Update No-Site-Visit Reserve Study, we started with a review of your prior Reserve Study, then looked into recent Reserve expenditures, evaluated how expenditures are handled (ongoing maintenance vs Reserves), and

researched any well-established association precedents. We updated and adjusted your Reserve Component List on the basis of time elapsed since the last Reserve Study and interviews with association representatives.

Assoc. 9721-9


Which Physical Assets are Funded by Reserves?

There is a national-standard four-part test to determine which expenses should appear in your Reserve Component List. First, it must be a common area maintenance responsibility. Second, the component must have a limited life. Third, the remaining life must be predictable (or it by definition is a surprise which cannot be accurately anticipated). Fourth, the component must be above a minimum threshold cost (often between .5% and 1% of an association’s total budget). This limits Reserve Components to major, predictable expenses. Within this framework, it is inappropriate to include lifetime components, unpredictable expenses (such as damage due to fire, flood, or earthquake), and expenses more appropriately handled from the Operational Budget or as an insured loss.

How do we establish Useful Life and Remaining Useful Life estimates?

1) Visual Inspection (observed wear and age)

2) Association Reserves database of experience

3) Client History (install dates & previous life cycle information)

4) Vendor Evaluation and Recommendation

How do we establish Current Repair/Replacement Cost Estimates?

In this orderK

1) Actual client cost history, or current proposals

2) Comparison to Association Reserves database of work done at similar associations

3) Vendor Recommendations

4) Reliable National Industry cost estimating guidebooks

Assoc. 9721-9


How much Reserves are enough?

Reserve adequacy is not measured in cash terms. Reserve adequacy is found when the amount of current Reserve cash is compared to Reserve component deterioration (the needs of the association). Having enough means the association can execute its projects in a timely manner with existing Reserve funds. Not having enough typically creates deferred maintenance or special assessments. Adequacy is measured in a two-step process: 1) Calculate the value of deterioration at

the association (called Fully Funded Balance, or FFB).

2) Compare that to the Reserve Fund Balance, and express as a percentage.

Each year, the value of deterioration at the association changes. When there is more

deterioration (as components approach the time they need to be replaced), there should

be more cash to offset that deterioration and prepare for the expenditure. Conversely,

the value of deterioration shrinks after projects are accomplished. The value of

deterioration (the FFB) changes each year, and is a moving but predictable target.

There is high risk of special assessments and deferred maintenance when the Percent Funded is weak, below 30%. Approximately 30% of all associations are in this high risk range. While the 100% point is Ideal (indicating Reserve cash is equal to the value of deterioration), a Reserve Fund in the 70% -130% range is considered strong (low risk of special assessment).

Measuring your Reserves by Percent Funded tells how well prepared your association is for upcoming Reserve expenses. New buyers should be very aware of this important disclosure!

Assoc. 9721-9


How much should we contribute?

According to National Reserve Study Standards, there are four Funding Principles to balance in developing your Reserve Funding Plan. Our first objective is to design a plan that provides you with sufficient cash to perform your Reserve projects on time. Second, a stable contribution is desirable because it keeps these naturally irregular expenses from unsettling the budget.

Reserve contributions that are evenly distributed over current and future owners enable each owner to pay their fair share of the association’s Reserve expenses over the years. And finally, we develop a plan that is fiscally responsible and safe for Boardmembers to recommend to their association. Remember, it is the Board’s job to provide for the ongoing care of the common areas. Boardmembers invite liability exposure when Reserve contributions are inadequate to offset ongoing common area deterioration.

What is our Recommended Funding Goal?

Maintaining the Reserve Fund at a level equal to the value of deterioration is called “Full Funding” (100% Funded). As each asset ages and becomes “used up”, the Reserve Fund grows proportionally. This is simple, responsible, and our recommendation. Evidence shows that associations in the 70-130% range enjoy a low risk of special assessments or deferred maintenance.

Allowing the Reserves to fall close to zero, but not below zero, is called Baseline Funding. Doing so allows the Reserve Fund to drop into the 0-30% range, where there is a high risk of special assessments & deferred maintenance. Since Baseline Funding still provides for the timely execution of all Reserve projects, and only the “margin of safety” is different, Baseline Funding contributions average only 10% - 15% less than Full Funding contributions. Threshold Funding is the title of all other Cash or Percent Funded objectives between Baseline Funding and Full Funding.

Assoc. 9721-9


Projected Expenses

The figure below shows the array of the projected future expenses at your association. This figure clearly shows the near term and future expenses that your association will face. Note the spike from 2017-2019, made primarily of Roofing, Painting and Asphalt expenses.

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

2017 2022 2027 2032 2037 2042 2047

Years

Annual Reserve Expenses

Figure 1

A summary of this information is shown in Table 4, while details of the projects that make up this information are shown in Table 5. Since this is a projection about future events that may or may not take place as anticipated, we feel more certain about “near-term” projects than those many years away. While this Reserve Study is a one-year document, it is based on 30 years worth of looking forward into the future.

Assoc. 9721-9


Reserve Fund Status

The starting point for our financial analysis is your Reserve Fund balance, projected to be $767,836 as-of the start of your Fiscal Year on January 1, 2017. As of January 1, 2017, your Fully Funded Balance is computed to be $1,942,680 (see Table 3). This figure represents the deteriorated value of your common area components. Comparing your Reserve Balance to your Fully Funded Balance indicates your Reserves are 40% Funded. Across the country, approximately 32% of associations in this range experience special assessments and/or deferred maintenance.

Recommended Funding Plan

Based on your current Percent Funded and your projected cash flow requirements, we are recommending Reserve contributions of $22,000/Month this Fiscal Year. This represents the first year of a 30-year Funding Plan. This same information is shown numerically in both Table 4 and Table 5.

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

Mo

nth

ly C

on

trib

uti

on

s

2017 2022 2027 2032 2037 2042 2047

Years

Funding Plan Recommended

Current

Figure 2

Assoc. 9721-9


The following chart shows your Reserve Balance under our recommended Funding Plan and your current Funding Plan, and your always-changing Fully Funded Balance target.

30-Yr Cash Flow

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

2017 2022 2027 2032 2037 2042 2047

Years

T arget Fully Funded Balance


Current Funding Plan

Figure 3

In this figure it is easy to see how your Reserve Fund gradually draws closer to the Fully Funded (100%) level.

Percent Funded

0%

20%

40%

60%

80%

100%

120%

2017 2022 2027 2032 2037 2042 2047Years


Current Funding Plan

Figure 4

Assoc. 9721-9


Table Descriptions

The tabular information in this Report is broken down into five tables.

Table 1 summarizes your funded Reserve Components, and is part of the Executive Report summary that appeared earlier in this Report.

Table 2 provides the main component description, life, and cost factors for all components determined to be appropriate for Reserve designation. This table represents the core information from which all other tables are derived.

Table 3 is presented primarily as an accounting summary page. The results of the individual line item Fully Funded Balance computations are shown. These individual quantities are summed to arrive at the Fully Funded Balance for the association as of the start date of the Report. The figures in the Current Fund Balance column and the Monthly Reserve Contribution column show our distribution throughout the line items. If the association is underfunded, Reserve Funds are distributed first to components with a short Remaining Useful Life. If the association’s Reserve Balance is above 100% Funded, funds are distributed evenly for all components. Contribution rates for each component are a proportionate distribution of the total contribution on the basis of the component’s significance to the association (current cost divided by useful life). This presentation is not meant to cause clients to redistribute association funds, it simply presents one way to evenly distribute the total among all the different line items.

Table 4: This table provides a one-page 30-year summary of the cash flowing into and out of the association, compared to the Fully Funded Balance for each year.

Table 5: This table shows the cash flow detail for the next 30 years. This table makes it possible to see what components are projected to require repair or replacement each year, and the size of those individual expenses.


Table 2: Reserve Component List Detail 9721-9

Rem. Current

Useful Useful Best Worst

# Component Quantity Life Life Cost Cost

Site / Grounds

100 Concrete/Curb - Repair/Replace Extensive Sq Ft 5 0 $4,220 $6,390

120 Asphalt - Remove/Replace (2017) Approx 11,600 GSF 35 0 $29,000 $40,600



120 Asphalt - Resurface ~ 69,400 Sq Ft 35 17 $144,000 $165,000

121 Asphalt - Seal/Repair ~ 69,400 Sq Ft 5 2 $14,400 $22,700

160 Pole Lights - Replace ~ (10) metal assemblies 30 11 $19,600 $23,700

205 Mailboxes/Structure - Replace (6) cluster stands 25 16 $7,620 $10,200


500 Roof: Comp Shingle - Replace (2016) ~ 52,000 Sq Ft 35 34 $278,000 $298,000



510 Gutters/Downspouts - Repair/Replace Extensive Lin Ft 35 25 $144,000 $165,000

515 Chimney Covers/Flue Caps - Replace ~ (43) covers, (50) caps 40 30 $29,900 $45,300

520 Siding: Hardie/Cedar - Replace ~ 200,000 GSF 50 40 $1,650,000 $2,580,000

525 Exterior Surfaces - Clean (2022) ~ 200,000 GSF 5 5 $10,000 $11,200



530 Exterior Surfaces - Paint (2017) ~ 62,000 GSF 10 0 $151,000 $171,000



535 Windows/Glass Doors - Replace Extensive quantity 50 40 $505,000 $711,000

540 Elastomeric Decks - Seal/Repair ~ 11,000 Sq Ft 6 2 $36,100 $40,200

545 Composite Decks - Repair/Replace ~ 7,000 Sq Ft 30 20 $185,000 $258,000

555 Deck Rail - Replace ~ 2,200 Lin Ft 50 40 $113,000 $165,000

560 Exterior Lights - Replace ~ (192) assorted fixtures 20 8 $16,500 $24,700

965 Fire Alarm Panels - Repair/Replace (16) ESL 1500 series 25 6 $34,000 $50,500

26 Total Funded Components


Table 3: Contribution and Fund Breakdown 9721-9

Rem. Fully Current

Useful Useful Current Funded Fund Reserve

# Component Life Life (Avg) Cost Balance Balance Contributions

Site / Grounds

100 Concrete/Curb - Repair/Replace 5 0 $5,305 $5,305 $5,305.00 $142.46

120 Asphalt - Remove/Replace (2017) 35 0 $34,800 $34,800 $34,800.00 $133.51

120 Asphalt - Remove/Replace (2018) 35 1 $34,800 $33,806 $33,805.71 $133.51

120 Asphalt - Remove/Replace (2019) 35 2 $34,800 $32,811 $0.00 $133.51

120 Asphalt - Resurface 35 17 $154,500 $79,457 $0.00 $592.72

121 Asphalt - Seal/Repair 5 2 $18,550 $11,130 $0.00 $498.15

160 Pole Lights - Replace 30 11 $21,650 $13,712 $0.00 $96.90

205 Mailboxes/Structure - Replace 25 16 $8,910 $3,208 $0.00 $47.85


500 Roof: Comp Shingle - Replace (2016) 35 34 $288,000 $8,229 $0.00 $1,104.88

501 Roof: Comp Shingle - Replace (2017) 35 0 $212,000 $212,000 $212,000.00 $813.31

502 Roof: Comp Shingle - Replace (2018) 35 1 $317,000 $307,943 $205,725.29 $1,216.13

510 Gutters/Downspouts - Repair/Replace 35 25 $154,500 $44,143 $0.00 $592.72

515 Chimney Covers/Flue Caps - Replace 40 30 $37,600 $9,400 $0.00 $126.22

520 Siding: Hardie/Cedar - Replace 50 40 $2,115,000 $423,000 $0.00 $5,679.76

525 Exterior Surfaces - Clean (2022) 5 5 $10,600 $0 $0.00 $0.00



530 Exterior Surfaces - Paint (2017) 10 0 $161,000 $161,000 $161,000.00 $2,161.80

531 Exterior Surfaces - Paint (2018) 10 1 $128,000 $115,200 $115,200.00 $1,718.70

532 Exterior Surfaces - Paint (2019) 10 2 $193,000 $154,400 $0.00 $2,591.47

535 Windows/Glass Doors - Replace 50 40 $608,000 $121,600 $0.00 $1,632.76

540 Elastomeric Decks - Seal/Repair 6 2 $38,150 $25,433 $0.00 $853.75

545 Composite Decks - Repair/Replace 30 20 $221,500 $73,833 $0.00 $991.38

555 Deck Rail - Replace 50 40 $139,000 $27,800 $0.00 $373.28

560 Exterior Lights - Replace 20 8 $20,600 $12,360 $0.00 $138.30

965 Fire Alarm Panels - Repair/Replace 25 6 $42,250 $32,110 $0.00 $226.92

26 Total Funded Components $1,942,680 $767,836 $22,000


Table 4: 30-Year Reserve Plan Summary 9721-9

Fiscal Year Beginning: 01/01/17 Interest: 1.3% Inflation: 3.0%

Starting Fully Annual Loans or Projected

Reserve Funded Percent Reserve Special Interest Reserve

Year Balance Balance Funded Rating Contribs. Assmts Income Expenses

2017 $767,836 $1,942,680 39.5% Fair $264,000 $0 $8,716 $413,105

2018 $627,447 $1,746,406 35.9% Fair $271,920 $0 $6,491 $494,194

2019 $411,664 $1,468,099 28.0% Weak $280,078 $0 $5,039 $301,826

2020 $394,954 $1,387,249 28.5% Weak $288,480 $0 $6,779 $0

2021 $690,213 $1,620,434 42.6% Fair $295,692 $0 $10,536 $0

2022 $996,441 $1,866,361 53.4% Fair $303,084 $0 $14,316 $18,438

2023 $1,295,403 $2,106,594 61.5% Fair $310,661 $0 $17,842 $63,106

2024 $1,560,800 $2,314,124 67.4% Fair $318,428 $0 $21,398 $35,851

2025 $1,864,776 $2,562,232 72.8% Strong $326,389 $0 $25,028 $74,423

2026 $2,141,769 $2,784,523 76.9% Strong $334,548 $0 $29,029 $0

2027 $2,505,346 $3,096,800 80.9% Strong $342,912 $0 $32,158 $237,746

2028 $2,642,671 $3,180,429 83.1% Strong $351,485 $0 $34,038 $221,823

2029 $2,806,370 $3,290,036 85.3% Strong $360,272 $0 $35,555 $316,733

2030 $2,885,465 $3,312,454 87.1% Strong $369,279 $0 $38,597 $0

2031 $3,293,340 $3,669,278 89.8% Strong $378,511 $0 $43,420 $57,705

2032 $3,657,566 $3,985,093 91.8% Strong $387,973 $0 $48,265 $24,779

2033 $4,069,025 $4,352,252 93.5% Strong $397,673 $0 $53,458 $31,308

2034 $4,488,848 $4,731,896 94.9% Strong $407,615 $0 $57,087 $303,545

2035 $4,650,005 $4,850,964 95.9% Strong $417,805 $0 $61,086 $0 2036 $5,128,895 $5,294,948 96.9% Strong $428,250 $0 $67,172 $0

2037 $5,624,317 $5,761,206 97.6% Strong $438,956 $0 $68,511 $788,467

2038 $5,343,317 $5,438,552 98.2% Strong $449,930 $0 $68,383 $257,837 2039 $5,603,794 $5,662,267 99.0% Strong $461,178 $0 $70,673 $425,662

2040 $5,709,983 $5,729,618 99.7% Strong $472,708 $0 $74,757 $0

2041 $6,257,448 $6,247,498 100.2% Strong $484,526 $0 $81,713 $0

2042 $6,823,687 $6,791,294 100.5% Strong $496,639 $0 $86,666 $356,790

2043 $7,050,201 $6,994,602 100.8% Strong $509,055 $0 $91,173 $105,134

2044 $7,545,295 $7,474,227 101.0% Strong $521,781 $0 $97,731 $64,751

2045 $8,100,057 $8,021,177 101.0% Strong $534,826 $0 $104,898 $47,131

2046 $8,692,650 $8,614,366 100.9% Strong $548,196 $0 $112,729 $0


Table 5: 30-Year Income/Expense Detail (yrs 0 through 4) 9721-9

Fiscal Year 2017 2018 2019 2020 2021

Starting Reserve Balance $767,836 $627,447 $411,664 $394,954 $690,213

Annual Reserve Contribution $264,000 $271,920 $280,078 $288,480 $295,692

Planned Special Assessments $0 $0 $0 $0 $0

Interest Earnings $8,716 $6,491 $5,039 $6,779 $10,536

Total Income $1,040,552 $905,858 $696,780 $690,213 $996,441

# Component

Site / Grounds

100 Concrete/Curb - Repair/Replace $5,305 $0 $0 $0 $0

120 Asphalt - Remove/Replace (2017) $34,800 $0 $0 $0 $0

120 Asphalt - Remove/Replace (2018) $0 $35,844 $0 $0 $0

120 Asphalt - Remove/Replace (2019) $0 $0 $36,919 $0 $0

120 Asphalt - Resurface $0 $0 $0 $0 $0

121 Asphalt - Seal/Repair $0 $0 $19,680 $0 $0

160 Pole Lights - Replace $0 $0 $0 $0 $0

205 Mailboxes/Structure - Replace $0 $0 $0 $0 $0


500 Roof: Comp Shingle - Replace (2016) $0 $0 $0 $0 $0

501 Roof: Comp Shingle - Replace (2017) $212,000 $0 $0 $0 $0

502 Roof: Comp Shingle - Replace (2018) $0 $326,510 $0 $0 $0

510 Gutters/Downspouts - Repair/Replace $0 $0 $0 $0 $0

515 Chimney Covers/Flue Caps - Replace $0 $0 $0 $0 $0

520 Siding: Hardie/Cedar - Replace $0 $0 $0 $0 $0

525 Exterior Surfaces - Clean (2022) $0 $0 $0 $0 $0



530 Exterior Surfaces - Paint (2017) $161,000 $0 $0 $0 $0

531 Exterior Surfaces - Paint (2018) $0 $131,840 $0 $0 $0

532 Exterior Surfaces - Paint (2019) $0 $0 $204,754 $0 $0

535 Windows/Glass Doors - Replace $0 $0 $0 $0 $0

540 Elastomeric Decks - Seal/Repair $0 $0 $40,473 $0 $0

545 Composite Decks - Repair/Replace $0 $0 $0 $0 $0

555 Deck Rail - Replace $0 $0 $0 $0 $0

560 Exterior Lights - Replace $0 $0 $0 $0 $0

965 Fire Alarm Panels - Repair/Replace $0 $0 $0 $0 $0

Total Expenses $413,105 $494,194 $301,826 $0 $0

Ending Reserve Balance: $627,447 $411,664 $394,954 $690,213 $996,441



Fiscal Year 2022 2023 2024 2025 2026

Starting Reserve Balance $996,441 $1,295,403 $1,560,800 $1,864,776 $2,141,769




Total Income $1,313,841 $1,623,906 $1,900,627 $2,216,192 $2,505,346

# Component

Site / Grounds


120 Asphalt - Remove/Replace (2017) $0 $0 $0 $0 $0














525 Exterior Surfaces - Clean (2022) $12,288 $0 $0 $0 $0

525 Exterior Surfaces - Clean (2023) $0 $12,657 $0 $0 $0

525 Exterior Surfaces - Clean (2024) $0 $0 $13,037 $0 $0

530 Exterior Surfaces - Paint (2017) $0 $0 $0 $0 $0




540 Elastomeric Decks - Seal/Repair $0 $0 $0 $48,327 $0



560 Exterior Lights - Replace $0 $0 $0 $26,095 $0

965 Fire Alarm Panels - Repair/Replace $0 $50,449 $0 $0 $0

Total Expenses $18,438 $63,106 $35,851 $74,423 $0

Ending Reserve Balance: $1,295,403 $1,560,800 $1,864,776 $2,141,769 $2,505,346



Fiscal Year 2027 2028 2029 2030 2031

Starting Reserve Balance $2,505,346 $2,642,671 $2,806,370 $2,885,465 $3,293,340




Total Income $2,880,416 $3,028,194 $3,202,197 $3,293,340 $3,715,271

# Component

Site / Grounds







160 Pole Lights - Replace $0 $29,969 $0 $0 $0
















540 Elastomeric Decks - Seal/Repair $0 $0 $0 $0 $57,705





Total Expenses $237,746 $221,823 $316,733 $0 $57,705




Fiscal Year 2032 2033 2034 2035 2036





Total Income $4,093,804 $4,520,156 $4,953,550 $5,128,895 $5,624,317

# Component

Site / Grounds





120 Asphalt - Resurface $0 $0 $255,365 $0 $0



205 Mailboxes/Structure - Replace $0 $14,298 $0 $0 $0















540 Elastomeric Decks - Seal/Repair $0 $0 $0 $0 $0





Total Expenses $24,779 $31,308 $303,545 $0 $0




Fiscal Year 2037 2038 2039 2040 2041





Total Income $6,131,784 $5,861,631 $6,135,646 $6,257,448 $6,823,687

# Component

Site / Grounds























540 Elastomeric Decks - Seal/Repair $68,903 $0 $0 $0 $0

545 Composite Decks - Repair/Replace $400,054 $0 $0 $0 $0




Total Expenses $788,467 $257,837 $425,662 $0 $0




Fiscal Year 2042 2043 2044 2045 2046





Total Income $7,406,991 $7,650,429 $8,164,807 $8,739,781 $9,353,575

# Component

Site / Grounds













510 Gutters/Downspouts - Repair/Replace $323,489 $0 $0 $0 $0










540 Elastomeric Decks - Seal/Repair $0 $82,274 $0 $0 $0



560 Exterior Lights - Replace $0 $0 $0 $47,131 $0


Total Expenses $356,790 $105,134 $64,751 $47,131 $0


Assoc. 9721-9


Accuracy, Limitations, and Disclosures

Washington disclosure, per RCW:

This reserve study should be reviewed carefully. It may not include all common and limited common element components that will require major maintenance, repair or replacement in future years, and may not include regular contributions to a reserve account for the cost of such maintenance, repair, or replacement. The failure to include a component in a reserve study, or to provide contributions to a reserve account for a component, may, under some circumstance, require you to pay on demand as a special assessment your share of common expenses for the cost of major maintenance, repair or replacement of a reserve component.

Because we have no control over future events, we do not expect that all the events we anticipate will occur as planned. We expect that inflationary trends will continue, and we expect Reserve funds to continue to earn interest, so we believe that reasonable estimates for these figures are much more accurate than ignoring these economic realities. We can control measurements, which we attempt to establish within 5% accuracy through a combination of on-site measurements, drawings, and satellite imagery. The starting Reserve Balance and interest rate earned on deposited Reserve funds that you provided to us were considered reliable and were not confirmed independently. We have considered the association’s representation of current and historical Reserve projects reliable, and we have considered the representations made by its vendors and suppliers to also be accurate and reliable. Component Useful Life, Remaining Useful Life, and Current Cost estimates assume a stable economic environment and lack of natural disasters.

Because the physical condition of your components, the association’s Reserve balance, the economic environment, and legislative environment change each year, this Reserve Study is by nature a “one-year” document. Because a long-term perspective improves the accuracy of near-term planning, this Report projects expenses for the next 30 years. It is our recommendation and that of the Financial Accounting Standards Board (FASB) that your Reserve Study be updated each year as part of the annual budget process.

Association Reserves and its employees have no ownership, management, or other business relationships with the client other than this Reserve Study engagement. James D. Talaga R.S., company president, is a credentialed Reserve Specialist (#66). All work done by Association Reserves WA, LLC is performed under his Responsible Charge. There are no material issues to our knowledge that have not been disclosed to the client that would cause a distortion of the association’s situation.

Component quantities indicated in this Report were found in prior Reserve Studies unless otherwise noted. No destructive or intrusive testing was performed. This Report and this site inspection were accomplished only for Reserve budget purposes (to help identify and address the normal deterioration of properly built and installed components with predictable life expectancies). The Funding Plan in this Report was developed using the cash-flow methodology to achieve the specified Funding Objective.

Association Reserves’ liability in any matter involving this Reserve Study is limited to our Fee for services rendered.

Assoc. 9721-9


Terms and Definitions

BTU British Thermal Unit (a standard unit of energy)

DIA Diameter

GSF Gross Square Feet (area)

GSY Gross Square Yards (area)

HP Horsepower

LF Linear Feet (length)

Effective Age: The difference between Useful Life and Remaining Useful Life. Note that this is not necessarily equivalent to the chronological age of the component.

Fully Funded Balance (FFB): The Reserve Balance that is in direct proportion to the fraction of life “used up” of the current Repair or Replacement cost. This benchmark balance represents the value of the deterioration of the Reserve Components. This number is calculated for each component, then summed together for an association total.

FFB = (Current Cost X Effective Age) / Useful Life

Inflation: Cost factors are adjusted for inflation at the rate defined in the Executive Summary and compounded annually. These increasing costs can be seen as you follow the recurring cycles of a component on Table 5.

Interest: Interest earnings on Reserve Funds are calculated using the average balance for the year (taking into account income and expenses through the year) and compounded monthly using the rate defined in the Executive Summary. Annual interest earning assumption appears in the Executive Summary, page ii.

Percent Funded: The ratio, at a particular point in time (typically the beginning of the Fiscal Year), of the actual (or projected) Reserve Balance to the Fully Funded Balance, expressed as a percentage.

Remaining Useful Life: The estimated time, in years, that a common area component can be expected to continue to serve its intended function.

Useful Life: The estimated time, in years, that a common area component can be expected to serve its intended function.

Assoc. 9721-9


Component Details

The primary purpose of the appendix Is to provide the reader with the basis of our funding assumptions resulting from our physical analysis and subsequent research. The appendix herein represent a wide range of elements that were observed and measured against National Reserve Study Standards to determine if they meet the criteria for reserve funding.

1) Common area maintenance, repair &replacement responsibility 2) Components must have a limited life 3) Life limit must be predictable 4) Above a minimum threshold cost (board’s discretion – typically ½ to 1% of annual

operating expenses). Some components are recommended for reserve funding, while others are not. The components that meet these criteria in our judgment are shown with corresponding maintenance, repair or replacement cycles (UL = Useful Life or how often the project is expected to occur, RUL = Remaining Useful Life or how many hears from our reporting period) and a representative market cost ranged termed “Best Cost” and “Worst Cost”. There are many factors that can result in a wide variety of potential costs, we are attempting to represent a market average for budget purposes. Where there is no UL, the component is expected to be a one-time expense. Where no pricing, the component deemed inappropriate for Reserve Funding.

Resolutions


RESOLUTION OF THE BOARD OF DIRECTORS OF

VILLAS AT HARBOUR POINTE OWNERS ASSOCIATION

WHEREAS, the Board of Directors of the Association is charged with the responsibility for the care and maintenance of the Common Elements; and

WHEREAS, the Association is also responsible for obtaining adequate insurance covering the condominium property; and

WHEREAS, frequent, small claims under an association's master insurance policy can lead to policy cancellation and/or substantial premium increases; and

WHEREAS, the Board is concerned that management of the Association's insurance loss deductible be handled In a responsible way that minimizes claims under the master insurance policy and at the same time minimizes the Association's financial foss associated with any claims; and

WHEREAS, the Board has determined that the loss deductible under the master policy should be assessed in a manner that minimizes the out of pocket expense to the Association as a whole;

NOW, THEREFORE,

BE IT RESOLVED that notwithstanding anything herein to the contrary, and except to the extent that a lack of insurance results from the negligence or breach of a duty to insure by the Board:

(1) Liability for the amount of damage within the limits of any applicable insurance deductible or otherwise uninsured shall be the responsibility of an individual Unit Owner where the damage results from a negligent or intentional action or omission by an Owner, or that Owner's tenant, or the family, servants, employees, agents, visitors or licensees of that Owner or Tenant, or from the failure of, or failure to maintain, any portion of the Condominium, including any appliance, equipment, or fixture in a Unit, which that Owner is responsible to maintain in good working order and condition.

(2) Except as provided in subparagraph (1) above, liability for the amount of damage within the limits of any applicable insurance deductible or otherwise uninsured shall be the responsibility of an individual Unit Owner where the damage involved is limited solely to damage to the Owner's Unit or the Limited Common Elements assigned to that Owner's Unit.

(3) Except as provided in subparagraphs (1) and (2) above, liability for the amount of damage within the limits of any applicable insurance deductible or otherwise uninsured shall be equitably prorated in the exercise of the Board's sole discretion between the Association and any involved Owners in proportion to the relative amounts of damage to the Common Elements and to each of the affected Units, including the Limited Common Elements assigned to such Unit or Units, where the damage involves both the Common Elements and/or one or more Units or the Limited Common Elements assigned to a Unit or Units.

Aaopted this 14th day of August, 2002.

VILLAS AT HARBOUR POINTE OWNERS ASSOCIATION

BOARD OF DIRECTORS

By:

Its:~

~;

RESOLUTION OF THE BOARD OF DIRECTORS OF THE VILLAS AT HARBOUR POINTE OWNERS ASSOCIATION

REGARDING A COLLECTION POLICY FOR DELINQUENT ACCOUNTS

WHEREAS the Board of Directors (the "Board") of The Villas at Harbour Pointe Owners Association (the "Association" is charged with the responsibility of collecting assessments for common expenses from Owners pursuant to Section 13.4.2 of the Declaration; and

WHEREAS from time to time Owners become delinquent in their payments of these assessments and fail to respond to the demands from the Board to bring their accounts current; and

WHEREAS the Board deems it to be in the best interests of the Association to adopt a uniform and systematic procedure for dealing with delinquent accounts in a timely manner, and further believes it to be in the best interests of the Association to refer these accounts promptly to an attorney for collection so as to minimize the Association's loss of assessment revenue; and

WHEREAS the Board has retained the Law Offices of James L. Strichartz as the Association's attorneys for their experience in representing condominium and homeowners associations in collections and other matters; and

WHEREAS the Board has directed the Association's attorneys to represent the Association on the terms outlined in this resolution; NOW, THEREFORE,

BE IT RESOLVED that the Association's attorneys shall pursue all collection and other matters which the Board, acting through the Manager, may from time to time refer to them and to provide any advice and counsel which the Board may from time to time require; and

BE IT FURTHER RESOLVED that the Manager, acting on behalf of the Association, shall pay the Association's attorneys their usual and customary charges for time incurred in cormection with their representation of the Association, together with all costs incurred by the firm, including but not limited to fees and charges for filing, service of process, messenger service, photocopies, postage, long distance calls, investigator's services, credit reports, and title reports, promptly upon receipt of the monthly invoice; and

BE IT FURTHER RESOLVED that pursuant to Section I 7.8 of the Declaration and RCW 64.34.364(13) there is hereby levied against any assessment account which is not paid in full as of the eleventh (lith) day of the month a late fee in the amount of Twenty-Five Dollars ($25.00) which the Manager is authorized and directed to charge to and collect from any delinquent Owner; and

BE IT FURTHER RESOLVED that the Manager is directed to send to any Owner who is more than thirty (30) days delinquent in the payment ofregnlar or special assessments, or other charges authorized by the Association's Governing Documents (hereinafter referred to as "Assessments"), a written notice (hereinafter referred to as the "First Notice") of the late fee and a request for immediate payment; and

BE IT FURTHER RESOLVED that the Manager is authorized to charge any Owner a fee in the amount currently charged at the time of preparation and recording of a Notice of Claim of Lien or Release of Lien by the Snohomish County Auditor; and

BE IT FURTHER RESOLVED that the First Notice and the Second Notice sent by the Manager to the delinquent owner shall state that any request for special consideration of hardship circumstances, including all reasons why tl1e Board should consider the request, must be submitted in writing to the Board before the Assessment becomes ninety (90) days delinquent, together with a request for a hearing, or in the alternative, a request that the detennination be made by the Board based on the written request, and if not so submitted, then such request shall have been deemed waived; and

Villas at Harbour Pointe Collection Policy Resolution -1- W :ldoc:s\clientlgS I \OOgS l-00100! 09330. WPD

BE IT FURTHER RESOLVED that the Manager is directed to send to any Owner who is more than sixty (60) days delinquent in the payment of Assessments written notice (hereinafter referred to as the "Second Notice") that, ifthe account is not paid in full within fifteen (15) days, a Notice of Claim of Lien will be recorded and a copy thereof will be forwarded to any lender with a mortgage against the unit; and

BE IT FURTHER RESOLVED that the Manager is directed to file a Notice of Claim of Lien against the delinquent unit as described in the Second Notice to the Owner and is further directed to send a copy thereof to the Owner's lender if the Owner's Assessments remain delinquent for fifteen (15) days after the date of the Second Notice; and

BE IT FURTHER RESOLVED that the Manager is directed to send to any Owner who is more than ninety (90) days delinquent in the payment of Assessments, a written notice (hereinafter referred to as the "Third Notice"), that if the account is not paid in full within ten (10) days it will be turned over to the Association's attorneys for collection and the Owner will be liable for payment of the minimum charge imposed by the Association's attomeys to cover fees and costs charged to the Association. Notwithstanding anything herein to the contrary, with respect to any account that is more than ninety (90) days delinquent in the payment of Assessments at the time that the board adopts this resolution, the Manager shall send the delinquent owner a written notice (hereinafter referred to as the "Final Notice"), that ifthe account is not paid in full within ten (1 0) days, or a request for special consideration of hardship circumstances, including all reasons why the Board should consider the request, must be submitted in writing to the Board within that ten (I 0) day period, together with a request for a hearing, or in the altemative, a request that the determination be made by the Board based on the written request, then any such request shall have been deemed waived, and the account will be tumed over to the Association's attorneys for the collection and in that event, the Owner will be liable for payment of the minimum charge imposed by the Association's attorneys to cover fees and costs charged to the Association; and

BE IT FURTHER RESOLVED that the Board or Manager is directed to refer any account which remains delinquent for ten (I 0) days after the Third Notice or Final Notice to the Association's attorneys for collection; and

BE IT FURTHER RESOLVED that the Manager is directed to consult with the Association's attorneys and tum over for collection immediately any account where the owner files or is the subject of a petition for relief in bankruptcy or a lender has commenced any action for foreclosure of its lien against the unit; and

BE IT FURTHER RESOLVED that the following policies shall apply to all delinquent accounts turned over to the Association's attomeys for collectio1~:

1. All contacts with a delinquent Owner shall be handled through the Association's attorneys. Neither the Manager nor any Association officer or director shall discuss the collection of the account directly with a Owner after it has been tumed over to the Association's attorneys unless one of the Association's attomeys is present or has consented to the contact.

2. All sums collected on a delinquent account shall be remitted to the Association in care ofthe Association's attomeys until the account has been brought current. All payments received on delinquent accounts will be applied first to attomeys fees and costs, then to late charges and interest, then to any security deposit, then to any special assessments, then to regular monthly assessments, and finally to any other amounts due if any, in that order.

3. A three month security deposit shall be assessed on the account as authorized by Section 17.10, of the Declaration; however, the Association's attorneys are granted the discretion to waive this security deposit in whole or in part under circumstances which they deem to be appropriate.

Villas at Harbour Pointe Collection Policy Resolution -2- W:\docslclie11tlg8l \OOgS \ -00\00 I 09330. WPD

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4. The Association's attorneys' minimum legal fee shall be assessed against each delinquent unit and its owner (including repeat offenders) when the account is turned over to the Association's attorneys for collection. That amount shall be credited against the fees and costs actually incurred in the collection of the Owner's account. All legal fees and costs incurred in the collection of a delinquent account shall be assessed against the delinquent unit and owner and shall be collectable as an Assessment as provided in Section 17.9 of the Declaration and RCW 64.34.364(14).

5. To the extent that the Association's attomeys, in their discretion, consider it to be appropriate in the circumstances, they are authorized to enter into an installment payment plan, secured by a Stipulation for Judgment; provided, however, that any payment plan which provides for a down payment ofless than the greater of one third (1/3) of the delinquent balance or twice the current monthly assessment, or monthly payments of less than twice the current assessment amount, or a duration in excess of six ( 6) months shall require the approval of the Board president.

6. Where, at the expiration ofthe period specified in the Association's attorneys' demand letter, an account remains delinquent and without a payment plan embodied in a signed Stipulation for Judgment or a signed agreement by a renter to pay rent, or in the event of a default under the tenns of either agreement, the Association's attorneys are authorized to take such further action as they, in consultation with the Board or Manager, believe to be in the best interest of the Association, including but not limited to;

a. Recording a Notice of Claim of Lien against the Unit; or

b. Filing suit against the delinquent Owner for money due pursuant to Section 17.7 of the Declaration, and RCW 64.34.364(12); or

c. Instituting a non-judicial action for foreclosure of the Association's lien, pursuant to Section 17.3 of the Declaration, and RCW 64.34.364(9); or

d. Filing a proof of claim in bankruptcy; or

e. Instituting a judicial action for foreclosure of the Association's lien, pursuant to Section 17.2 of the Declaration, and RCW 64.34.364(9) and seeking the appointment of a receiver for the unit pursuant to Section 17.4 of the Declaration, and RCW 64.34.364(10); and

BE IT FURTHER RESOLVED that a copy of this resolution shall be sent to all~heir last

known addresses. /I d-/ I~ This resolution was a,rllted by the Board ofDir~rs on ·/J- ,' 1

/ , 200 '7 , and shaJI be effective on I ( , 20 ozc_.

ATTEST:

Villas at Harbour Pointe Collection Policy Resolution -3- W :\docs\client\g8l \OOgSl·00\00 I 0!)330. WPD

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BOARD OF DIRECTORS RESOLUTION RE SUBMETERING UTILITIES

At a regular_meeting of the Board of Directors ("Board") of the VILLAS AT HARBOUR POINTE HOMEOWNER ASSOCIATION, held on November 9, 2010, at the address ofXXXX at the time of7:00p.m., the Board states as follows:

WHEREAS, a regular meeting of the Board was convened at the date, place and time set out above;

WHEREAS, proper notice of this meeting was sent to all Board members, and a quorum of Directors was present for this meeting in person or by conference telephone, each having received notice of said Board meeting (or waived notice thereof by being present at the meeting);

WHEREAS, the Board of Directors is requesting the sub metering of water and sewer usage be discontinued and the water and sewer charges be made a common expense to all Unit Owners based on an equal per unit charge. The request is based on the impending expense to repair and update the metering system ($21,856), the annual expense to operate the system ($6,309.20), and additional annual expense for the auditor to reconcile unpaid sub metering charges;

WHEREAS, according to Declaration 16.8 of the Declaration:

"The cost of water and sewer service to the Units will be paid be by the Association and specially allocated to the Units based on usage as determined by sub meters or other reasonable means. The Board may require that each Owner maintain a deposit with the Association in an amount determined from time to time by the Board as a security deposit. .. "

WHEREAS, the Board has determined the request has merit, and finds it reasonable;

NOW THEREFORE, the Board, after consideration and deliberation regarding the matters set forth herein, resolves as follows:

Resolutions:

BE IT RESOLVED that the Board approves discontinuing the water and sewer sub metering as a special allocation. The water and sewer charges shall become a common expense of the Association and will be paid by Unit Owners based upon and equal per unit charge.

Dated this 9th day of November, 2010.

VILLAS AT HARBOUR POINTE HOMEOWNER ASSOCIATION

ATTEST: The above resolution was properly adopted.

BY--:,/~cr 6-fi. /f7~ By: ts President

4:£ ___ -- M .Q-JL~ Secretary

Rules and Regulations


THE VILLAS AT HARBOUR POINTERULES AND REGULATIONSFOR HARMONIOUS LIVING

Revised September 8, 2009

STATEMENT OF PURPOSE

These rules are intended to create and maintain a cooperative and positive atmosphere for themutual accommodation by all owners and occupants, to ensure our comfort, and to preserve thevalue of our investment at the Villas at Harbour Pointe.

Many of these rules are stated in the recorded Declaration of Covenants (Covenants, Conditionsand Restrictions) for the Villas at Harbour Pointe. The intent of this document is to clarify,supplement and make accessible these rules. If any rule or description is in conflict with therecorded Declaration, the provision of the Declaration shall prevail.

These rules and regulations, as well as the Declarations and By-laws, apply to all homeowners,lessees and guests of the owner.

These rules may be added to, amended or repealed at any time by resolution of the Board ofDirectors as provided in the Declarations and By-laws.

RULE ENFORCEMENT

1. Any homeowner may file a complaint regarding a homeowner who they believe is not incompliance with these rules with any Board Member or directly to the PropertyManagement Company.

2. Determination ofwhether a violation has occurred, and the appropriate remedy, may bedelegated to the Property Management Company or to an agent or employee of theAssociation at the discretion of the Board of Directors.

3. The Property Management Company will keep a record of all complaints and offenses.A homeowner may in writing request and be allowed to view the owner's complaint fileand may request the purging of complaints that are over two years old and that have notbeen repeated.

4. Upon determination that a homeowner is in violation of these rules, the PropertyManagement Company will notify the offending owner in writing by certified mailasking that the homeowner correct the situation within a reasonable period of time.

5. If the correction is not made within a reasonable amount of time as stated in the firstwarning notice, the Property Management Company will send a second notice in writing

September 8, 2009 Rules and Regulations 1

by certified mail notifying the homeowner that a fine will be levied according to the fineschedule and the date the fine will be due ifthe violation is not corrected by the requesteddate in the second notice. The homeowner will also be advised in the second notice of aright to a hearing with respect to the violation and fine.

6. If the correction is not made within the time period allowed after the second notice issent, or if a homeowner has not requested a hearing, the Property Management Companywill send a third notice stating that a fine has been levied according to the fine schedule,and the date the fine is due. In addition, the Board may direct the Property ManagementCompany to take action to correct the problem and charge the cost to the offendinghomeowner.

7. Once a fine has been levied, all fines and charges will be due at the same time asAssociation dues the first month following the violation. Late fees of $25 and interest atthe rate of one percent (I %) per month will be charged on the outstanding balance.

8. Association Fine Schedule to be as follows: (I) First Offense: warning notice (2) SecondOffense same violation: $100 Fine (3) Third offense same violation $250 fine (4) Allsubsequent offenses for the same violation shall carry a $500 fine.

APPEAL BY HOMEOWNER

9. A request for a hearing may be submitted in writing to the Board of Directors. The Boardwill give written notice to the homeowner which shall include a description of theoffense, the proposed action and or fine, the time and the place of the hearing andwhether testimony must be oral, written or both.

10. At the hearing the Homeowner shall have the right to give testimony subject toreasonable rules of procedure established by the Board to assure a prompt and orderlyresolution. Evidence presented at the hearing shall be considered in decisions regardingfines and enforcement actions.

11. The Homeowner will be notified of the final decision in writing by the PropertyManagement Company at the discretion of the Board of Directors.

ASSOCIATION DUES AND FEES

I. Association Dues and assessments are due by the 10th of each month. Dues and fees notpaid by the 10th shall be considered delinquent and the Homeowner shall be assessed alate charge of$25.00 and interest at the rate of one percent (1 %) per month on theoutstanding balance. Assessments delinquent ninety (90) days will be turned over to anattorney or collection agency and the mortgage company of the Homeowner will benotified of the delinquency. A lien may be placed on the property of any Homeowner inarrears over ninety (90) days.


QUIET ENJOYMENT

1. Owners shall exercise extreme care to avoid making noises that might disturb otherresidents. Specifically, care should be taken to avoid excessive sound emanating from aunit when using musical instruments, radios, televisions, amplifiers or any powerequipment. In particular, sound system loudspeakers shall not be rigidly attached to theparty wall with another Unit or the ceilings, walls, shelves or cabinets in a Unit in amanner that will induce objectionable vibrations into the structure of the building. Ifnecessary, reasonable corrective action may need to be taken by the homeowner at thediscretion of the Board of Directors. Loud conversations should be avoided when sittingon decks and patios in the evenings.

2. Quiet time should be observed from 10:00 PM to 8:00 AM.

3. Use of wind chimes is allowed, but checking with your immediate neighbors who may beaffected is common courtesy. If it is disrupting their sleeps the Board may ask the ownerto remove it.

4. Use common courtesy and consideration when engaging in activities that may affect yourneighbors. Checking with your neighbors first should avoid or minimize conflicts orconfrontations.

5. An owner of a constantly barking dog that is disturbing others will be asked to remedythe situation even to the point ofbeing asked to remove the dog permanently from thecomplex.

6. Owners of units that are above other units may not change the flooring from carpet tohard surface flooring without the approval of the Board, as stated in Section 25.3 of theDeclaration.

7. Subject to compliance with local applicable zoning laws, the use of a unit as a homeoffice is allowed, provided it does not involve regular visits by customers or clients.Business conducted within a unit must be confined to quiet, non-disruptive legalactivities.

8. Owners may only hold a garage sale in conjunction with the ANNUAL MUKILTEOCITY-WIDE GARAGE SALE held every April. (Notice of this sale is advertised in theMukilteo Beacon and other local media.) Exceptions may be made for owners who aremoving and request special permission from the Board of Directors to hold a movingsale.


PETS

1. Homeowners shall control their pets at all times and comply with local leash laws. Nodogs shall be allowed to run loose on the property and shall be on a leash and under thecontrol of its owner when outside a unit. No dogs may be tied to a stake outside on eitherthe common areas or the limited common areas (patios.) Cats may be allowed to roamfree subj ect to their not becoming a nuisance.

2. Owners shall clean up after their pets, including excrement on any portion of thecondominium.

3. No dog or cat houses, storage of pet food or feeding of animals is allowed on patios orany common areas.

4. Any pet that is a danger or a nuisance, i.e. constant barking, growling, snapping or biting,digging in the landscaping, continually roaming on common areas may be subject topermanent removal from the premises at the discretion of the Board upon notice to theOwner and with an opportunity for a hearing.

SALE OR LEASE OF UNITS

I. A Homeowner selling their unit will pay to the Property Management Company thecurrent charge of $150 for a resale certificate which is required by law when selling acondominium unit. This charge is subject to change as necessary.

2. "For Sale" signs may only be placed in windows of units. No post signs shall be allowedat the entrance of the complex or in front of any unit. One small arrow sign on a stakestating "For Sale" may be placed at the entrance of the complex.

3. "Open House" sandwich boards may be placed at entrance and in front of unit duringopen house, but must be removed at end of the day.

4. Any owner selling their unit must inform the Board or the Property ManagementCompany the name ofthe agency and agent handling the sale.

5. Any owner selling their unit must notify the Board or the Property ManagementCompany when they have sold their unit and provide the names of the purchasers.

6. No "For Rent" signs may be placed in windows or anywhere on the property.

7. Any Homeowner leasing their unit must notify and provide a copy of the lease to theBoard of Directors or the Property Management Company.

8. A Homeowner leasing their unit must provide a copy of the CC&Rs and the Rules andRegulations to the lessee and notify the lessee in writing and integrated as a part of thelease that the lessee must comply with all CC&Rs and the Rules and Regulations.


9. A Homeowner leasing their unit must provide the Board of Directors proof that a creditreport and criminal background check on the lessee was ordered and received anddeemed satisfactory.

10. A Homeowner leasing their unit is fully responsible for the actions of the lessee and willbe subject to these Rules and Regulations, including fines, the same as if thy were livingthere themselves.

SAFETY, MAINTENANCE AND PROPERTY DAMAGE

1. Gasoline or any other highly flammable substance shall not be stored in any unit orgarage in compliance with Washington State Law.

2. A maximum speed of 15 MPH shall be in effect for all vehicles driving throughout thecomplex.

3. Homeowners must secure any items placed on decks in such a way as to preventaccidental dislodgement during high winds. Homeowners shall avoid accidental injury toothers and must not allow items to be dropped, thrown or to fall from decks.

4. Homeowners shall maintain decks to prevent water damage or dry rot damage to buildingand decks.

5. Homeowners shall use caution when burning candles, smoking tobacco products or othersuch potential fire hazards within the complex.

6. Homeowners shall notify the Property Management Company when they see a potentialproblem which could lead to major long term damage.

7. Homeowners shall use outdoor grills a sufficient distance away from the buildings so asnot to damage siding or to allow smoke to travel into neighbors' units.

8. Homeowners shall maintain appliances, such as water heaters, ranges, washers and dryersin good working order so as not to cause fire or water damage to their own or other units.

9. Any damage caused by the actions of owners, their guests, children, pets or hired workersto any Common Elements/Areas is the financial responsibility of the Owner, includingattorney fees and court costs if required to collect damages.

10. Owners shall not install wiring for electrical or telephone installation, televisionantennae, satellite dish, machines, etc. on the exterior of a building, on any common orlimited element, or anything that protrudes through the walls of a unit or the roof of abuilding, except as authorized in writing by the Board.


11. Owners shall not install anything on the exterior of the building that would increase thecost of maintenance, or damage the building; i.e. holes in the siding, painting, or causewater intrusion, etc.

12. Owners shall take no action that will increase the maintenance costs or liabilities to theAssociation.

13. Central air conditioning is allowed to be installed in the unit at the owner's expense. Theplacement of the condensing unit for the air conditioner must be approved by the board ofdirectors. No window mounted air conditioners or evaporators are allowed includingportable air conditioners that vent through a window or other opening visible from theexterior of the unit.

INSURANCE

I. Homeowners will be responsible for any damage in their unit up to the amount of theAssociation's current insurance deductible. No owner or lessee shall engage in or causeany activity that would increase association rates or insurance.

EMERGENCY ACCESS

1. Prior to leaving for any extended vacation a homeowner should notify the PropertyManagement Company or a Board member ofthe dates they will be gone and whom theymay contact for access to their unit in case of emergency, i.e. pipes freezing, water heaterleaking, fire, burglar alarm going off, unusual or unauthorized activity around or in unit,etc. Homeowner shall maintain a minimum heat to prevent freezing.

LANDSCAPING

1. Planting by individual homeowner shall be allowed only in each homeowners' limitedcommon area, such as borders within 18" of the concrete patios or within 18" of thebuilding. Plants shall be limited to a growth of24" high. No grass or existing plants maybe removed or disturbed. No planting by individual homeowners shall present amaintenance problem, interfere with or increase the cost to the contracted landscapecontractor. The individual homeowner shall take full responsibility for care andmaintenance. Any plantings that are overgrown or not maintained properly shall beremoved by the homeowner or at the discretion of the Board of Directors, the cost ofwhich will be charged to the Homeowner. (It is suggested that Homeowners choosing toplant may want to notify the landscape company in person or by posting a small signsaying that the plants will be maintained by Homeowner. There is a risk that helandscapers may not recognize the difference between weeds and flowers, and my pullthem.)

2. Container planting by individual homeowners will be allowed. Containers will be limitedto patios, balconies and decks. Hanging containers may not be hung over other unit


owner's decks or driveways. No items may be placed on the decks or balconies thatwould block the view of another unit.

3. Plants and containers must be maintained for attractive appearance by individualhomeowner. Dead plants and weeds must be removed. Broken, decaying or unsightlycontainers must be removed by homeowner.

4. Homeowners may submit a landscape or plantings plan to the Board of Directors forapproval for anything that is not within the allowed area. The decision will be made atthe Board of Directors' discretion based on the attractiveness of the plan, the cost ofmaintenance and who pays for and maintains responsibility. Plans must include theresponsibility of the homeowner to return the landscaping to its original condition in castof the sale of the unit, or written agreement signed by the new owner that they will abideby the original landscaping agreement.

5. No actions may be taken by individual homeowners that would increase the cost of thelandscape maintenance contract, without Board approval.

DECORATIONS, APPURTANCES AND HOBBIES

1. Owners shall not hang towels, garments, rugs, etc. from the windows or from any of thedecks or facades oftheir units.

2. Individual homeowners may decorate the exterior of their unit during holidays. Alldecorations shall be removed within two weeks after the holiday ends.

3. Homeowners may fly the American Flag for appropriate holidays. It is to be installed ona post and not on the siding shingles.

4. Wind-socks and decorative banners are not allowed unless part ofholiday decorations,and must be hung from posts and not on siding shingles.

5. All window coverings visible from the exterior ofthe building must be neutral color,such as white, off white, or cream. Natural color (light stains only) wood blinds areallowed. Hanging temporary window treatments, such as sheets is not allowed.

6. No exterior window coverings, such as bamboo shades, roller shades or awnings areallowed, nor are they allowed to be hung from decks as sun protection.

7. No sunflower seeds or other bird seed bird feeders are allowed because of the additionallandscaping clean-up costs and because the food attracts rats, which are a serious problemin the Mukilteo area. Liquid filled hummingbird feeders may be used.


GARBAGE

1. Homeowners shall be responsible for their owner recycling, trash and garbage containers,which shall be kept in their garage at all times except on garbage pick-up day.Containers may be placed outside the evening before garbage will be picked up as long asthe containers are secured to avoid debris being scattered or blown about the area due towind or animals.

2. If a homeowner will be out of town and unable to place garbage out on pick-up day, theymay request that their neighbor set their containers out on pick-up day and bring thecontainers in on pick-up day or miss the pick-up that week. Containers may not be putout on any other day than pick-up day, nor left out after the pick-up day.

3. Owners shall comply with the requirements ofthe garbage collection utility for company.

HOT TUBS

1. All requests for installation of spas or hot tubs must be approved by the Board ofDirectors, except those initially approved by the developer in the Declaration.

2. Maximum size is seven (7) feet by seven (7) feet.

3. Restricted to limited common area patios (not decks) which are not openly visible fromwindows of other units, common roadways with the Villas, public roadways or commonpark areas.

4. Are subject to obtaining permits for installation from the city of Mukilteo if required andwill meet all applicable codes including health, safety, electrical concerns, etc.

5. Owner shall adequately maintain the unit and not allow unreasonable noise or odors thatwould be offensive to other owners.

6. Use will be limited to the hours of 8:00 AM to 10:00 PM.

7. Tub will be covered when not in use.

8. Owner shall be responsible for safety concerns and will provide evidence ofliabilityinsurance with the Homeowners' Association as an additionally named insured.

9. Owner shall be responsible for any damages caused to common areas or other units.


PARKING AND VEHICLES

Each unit in the Villas has a garage as part of the unit.

I. In addition, certain Units have Limited Common Element driveways which may be usedfor parking operable passenger motor vehicles.

2. The garages may be used for normal household storage; provided it does not affect theability to park an automobile in the garage.

3. All open parking spaces or areas are intended for guest parking subject to rules andregulations adopted by the Board.

4. The driveways and open parking spaces may not be used for parking trucks (other thansmall pick-up trucks), trailers, or recreational vehicles, or for any purposes (other thanparking passenger motor vehicles).

5. Parking on the streets of the Condominium, except in designated parking spaces or areas,is prohibited unless permitted by rule and regulation adopted by the Board.

6. The Board may direct that any vehicle or other thing improperly parked or kept in aparking space be removed, and if it is not removed the Board may cause it to be removedat the risk and cost of the Owner thereof.

7. Owners and their visitors shall not block common drive areas. In areas where drivewaysand auto-courts are shared by two or more owners, homeowners shall not block anotherhomeowner from entering or leaving their driveway or garage. No parking is allowed infront of garages in common auto-courts shared with two units in the Belmonte homes.

8. Mukilteo City Fire code prohibits anyon-street parking. Any vehicles improperly parked

within the condominium complex are subject to a fine and towing by the City and or theAssociation at the direction of the Property Management Company or Board of Directors.

9. All vehicles parked in driveways or guest parking must be operative and ifnot operative,must be removed within 24 hours. The Board shall have the right to remove from thepremises any such vehicle considered after placing a notice on the vehicle for 48 hours.

Removal of vehicle shall be at the expense of the Owner.

10. Exclusive of washing a vehicle, no work on vehicles that will create or cause oil and gasor other substances to spill on the roads or driveways will be permitted. The Owner shallbe responsible for any damage to the road or driveway surface caused by a violation of

this rule.

II. A committee of five volunteers from areas around The Villas is granted the authority to.place notices of violation on vehicles in violation of the declaration and/or house rules.


12. If guest parking is to be used more than three consecutive days by visitors, a permit mustbe applied for and approved by the parking committee or board. Guest permits greaterthan a consecutive 14 day period must be approved by the Board. Guest permits issuedmore than twice in a calendar year for the same guest must be approved by the Board.

13. Guest parking use by residents will only be approved for projects that require vacatingthe garage in units with shared driveways and in other units vacating the driveways. Apass must be requested for any resident vehicle that requires parking more than eighthours and/or overnight. The Board has the right to fine and tow resident vehicles inviolation of this house rule.

14. Parking of trucks, trailers, or recreational vehicles is allowed in driveways for thepurposes of loading and unloading such vehicles. Parking of such vehicles shall beallowed for a period of24 hours.

These rules and regulations were adopted at a duly called meeting of the board of directors onSeptember 8, 2009 and shall become effective on October 1,2009.

ich Miller, Secretary
