Section 1: Repair and Maintenance Rights and Duties of Association

Subject to Article 13 pertaining to eminent domain and subject to Article 12 pertaining to destruction of improvements, the Association shall paint, maintain, repair and replace the common Property and improvements thereon or shall contract for such maintenance, repair and replacement to assure maintenance of the common Property and improvements thereon, reasonable consistent with the level of maintenance reflected in the initial budget for the Property. However, the Association shall not be responsible for or obligated to perform those items of maintenance, repair or improvement of the units or restricted common areas, the maintenance of which is the responsibility of the owners as provided in Section 3. Association maintenance, repairs and improvements shall include, without limitation, the right, without obligation, to perform all corrective janitorial, landscaping and repair work within any residence, if the owner fails to repair it; the repair and payment for all central metered utilities, water charges, and mechanical and electrical equipment in the common Property; payment of all charges for all utilities which service individual units but which are subject to a common meter; payment of all common expenses and charges for water and utilities serving recreational amenities; repair and maintenance of all walks, private driveways and other means of ingress and egress within the Property, and if determined by the Board to be economically feasible, a monthly inspection and preventative program for the prevention of eradication of infestation by wood-destroying and other pests and organisms in the Property. All such costs of maintenance, repairs and replacements for the Property shall be paid for as common expenses out of the Association maintenance funds as provided in this Declaration. It shall further be the affirmative duty of the Board of Directors to require strict compliance with all provisions of this Declaration and to cause the Property to be inspected by the architectural committee for any violation thereof.

Section 2: Unsegregated Real Property Taxes

To the extent not assessed to or paid by the owners, the Association shall pay all real and personal property taxes and assessments levied upon any portion of the Property. In addition, if all of the units in a phase of development are taxed under a blanket tax bill covering all of such phase, each owner shall pay his proportionate share of any installment due under the blanket tax bill to the Association at least ten (10) days prior to the delinquency date; and the Association shall transmit the taxes to the appropriate tax collection agency. Blanket taxes shall be allocated equally among the owners in such phase, based upon the total number of units in such phase. The Association shall, at least forty-five (45) days prior to the delinquency date of any blanket tax installment, deliver to each owner in such phase a copy of the tax bill, along with a written notice setting forth the owner’s obligation to pay his proportionate share of the tax installment and the potential additional charges to the owner for failure to comply. The Association shall pay the taxes on behalf of any owner who does not pay his proportionate share, and shall use any available sums in the operating fund or borrow any sums as may be required to make the payments on behalf of delinquent owners. The Association shall levy a special assessment against any delinquent owner in the amount of any sum advanced, plus interest at the rate of ten percent (10%) per annum and say, in addition, include as part of the special assessment an amount necessary to reimburse the Association for any penalty or late charge actually assessed in connection with the blanket tax bill for a phase of development which late charge results from the failure of the delinquent owner(s) to make timely payment of his proportionate share of the taxes. Until the close of escrow for the sale of ninety percent (90%) of the townhomes in the project the foregoing provisions relating to the collection of taxes in connection with a blanket tax bill on all or any portion of the project may not be amended without the express written consent of the Grantor.

Section 3: Repair and Maintenance by Owners

Each owner shall maintain, repair, replace, paint, paper, plaster, tile, finish and restore or cause to be so maintained, repaired, replaced and restored, at his sole expense, all portions of his unit, including the windows, walls, ceilings, floors, doors and permanent fixtures, in a clean, sanitary and attractive condition, in accordance with the townhome plan and the original construction design of the improvements in the project. However, no bearing walls or other structural or utility bearing portions of the buildings housing the units shall be pierced or otherwise altered or repaired, without the prior written approval of the plans for the alteration or repair by the architectural committee. It shall further be the duty of each owner, at his sole expense, to keep free from debris and in a reasonably good state of repair subject to the approval of the architectural committee, the restricted common areas over which an exclusive easement has been reserved for the benefit of such owner. However, no owner shall be responsible for the periodic structural repair, resurfacing, replacement or painting of his assigned restricted common areas, so long as the painting, repair or replacement is not caused by the willful or negligent acts of the owner or his family or guests. It shall further be the duty of each owner to pay when due any and all charges for all utility services which services are not centrally metered but are separately metered to his unit. Subject to any required approval of the architectural committee, each owner shall be responsible for maintaining those portions of any heating and cooling equipment and other utilities which are located within or which exclusively service his unit.

Section 4: Use of Agent

The Board of Directors, on behalf of the Association, may contract with a professional management agent for the performance and maintenance and repair and for conducting other activities on behalf of the Association, as may be determined by the Board. The term of such contract, or any contract with Grantor for the furnishing of services to the Association, shall not exceed one (1) year, renewable by agreement of the parties for successive one-year periods, and such contract shall be terminable by the Association, acting through the Board, at any time (a) for cause upon thirty (30) days’ written notice thereof, and (b) without cause or the payment of a termination fee upon ninety (90) days’ written notice.

Section 5: By the Association

The Association as a common expense of all owners shall care for, maintain and keep in good repair the common area and all areas within each townhouse building site which are outside the enclosed fences thereof, including driveways, fences and landscape areas, and only the Association shall have the right to alter or relocate fences and landscape areas. The Association shall have the duty and exclusive right to paint the exterior of the residence and the fences appurtenant thereto, when, in the exclusive judgement of the Association, such painting is required.

Section 6: Prior Contracts

Prior to passing control of the common area to the Owners Association, it is unacceptable to bind, either directly or indirectly or contracts or leases, the Owners Association unless they are provided the rights of termination as in Section 4 above.