Carrollwood Lakes

Declaration of Covenants, Conditions and Restrictions

Jul 05, 2001

Declaration of Covenants For Carrollwood Lakes

Article 1 Definitions

1.01 ?“Association?” shall mean and refer to The Carrollwood Lakes Homeowners Association, a Tennessee non-profit corporation, a copy of the Articles of Incorporation of which is attached hereto as Exhibit ?“C?”, its successors or assigns, which Association shall have as its members all of the Owners of Lots within the Properties and which shall be responsible for the care, management and supervision of the Common Area within the Properties.

1.02 ?“By-Laws?” shall mean and refer to the By-Laws of the Carrollwood Lakes Homeowners Association which are attached hereto as Exhibit ?“D?” and as the same may be amended from time to time.

1.03 ?“Common Area?” shall mean all real property owned by the Association for the common se and enjoyment of the Owners from time to time.

Declarant may from time to time in its sole discretion convey to the Association and the Association shall accept additions to the Common Areas. However, the Association will not be required to accept the conveyance of any area on which a lake is situated until the lake is approved in writing by the Tennessee Soil Conservation Department or its successor or any improved area until the improvements thereon are complete.

1.04 ?“Declarant?” shall mean and refer to Great American Homes, Inc., its specific successors and assigns as designated in a document placed of record in the Register?’s Office of Shelby County, Tennessee, which designates such successors and assigns as the party or parties succeeding to the rights of the Declarant hereunder.

1.05 ?“Lot?” shall mean and refer to any plot of land designated for the development of a single-family residence as shown upon any plat recorded or to be recorded, subdividing the Properties.

1.06 ?“Owner?” shall mean and refer to the record owner, whether one or more persons or entities, of a fee simple title to any Lot which is part of the Properties, including contract sellers, but excluding those having such interest merely as security for the performance of an obligation.

1.07 ?“Properties?” shall mean and refer to that certain real property herein above described, and such additions thereto as may hereafter be brought within the jurisdiction of the Association, as herein provided.

1.08 ?“Subdivided?” shall mean and refer to any portion of the Properties described in a plat of subdivision filed of record in the Register?’s Office of Shelby County, Tennessee.

ARTICLE 2. Property Rights

2.02 Owner?’s Easements of Enjoyment. Every Owner shall have a right and easement of enjoyment in and to the Common Area which shall be appurtenant to and shall pass with the title to every Lot, subject to the following provisions:

(a) the right of the Association to charge reasonable admission and other fees for the maintenance and use of any lake or recreational facility situated upon the Common Area;
(b) the right of the Association to suspend the voting rights and right to use of the Common Area or and improvements thereon by an Owner for any period during which any assessment against his Lot remains unpaid; and for a period not to exceed sixty (60) days for each infraction of its published rules and regulations;
(c) the right of the Association to dedicate or transfer all or any part of the Common Areas to any public agency, authority, or utility for such purposes and subject to such conditions as may be agreed to by the members. No such dedication or transfer shall be effective unless an instrument signed by two-thirds (2/3) of each class of members agreeing to such dedication or transfer has been recorded.
(d) The right of the Association to adopt rules and regulations for the benefit of the Owners respecting use of any lake or recreational facility situated upon the Common Areas.

2.02. Delegation of Use. Any Owner may delegate, in accordance with the By-Laws, his right of enjoyment to the Common Area and facilities tot he members of his family, his tenants, or contract purchasers who reside on the property.
ARTICLE 3. Membership and Voting Rights.

3.01 Every Owner of Lot which is subject to assessment shall be a member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment.
3.02 The Association shall have two (2) classes of voting memberships:
Class A. Class A members shall be all Owners with the exception of the Declarant and shall be entitled to one (1) vote for each Lot owned. When more than one (1) person holds an interest in any Lot, all such persons shall be members. The vote for such Lot shall be exercised as they among themselves determine, but in no event shall more that one (1) vote be cast with respect to any Lot.
Class B. the Class B member(s) shall be the declarant and shall be entitled to five (5) votes for each Lot owned. The Class B membership shall cease and become converted to Class A membership on the happening of either of the following events, whichever occurs earlier:
(i) when the total votes outstanding in the Class A membership equal the total votes outstanding in the Class B membership; or
(ii) January 1, 1994.

ARTICLE 4. Annexation of Additional Properties.
4.01 Declarant also owns or may acquire certain tracts of land (?“Additional Tracts?”) located in the County of Shelby, State of Tennessee, adjacent to the Properties subject to this Declaration. The Additional Tracts are described in Exhibit ?“B?” attached hereto and incorporated herein by reference. Declarant may, but is not obligated to, subject all or part of the Additional Tracts, and the improvements thereon, to this Declaration. However, nothing herein contained shall be construed to require the Declarant to submit any part of the Additional Tracts to this Declaration or to limit the use of the Additional Tracts in any way, the Declarant reserving unto itself, its heirs or assigns, all rights and privileges with respect to such Additional Tracts, including, without limitation, the use thereof in accordance with any present or future zoning regulations, or variations therefrom, which may be applicable to such Additional Tracts, in whole or in part.
4.02 Except as provided in Section 4.01, annexation of Additional Tracts shall require the assent of two-thirds (2/3) of the Class A members and the Class B members called for this purpose, written notice of which shall be sent to all members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting setting forth the purpose of the meeting. The presence of members or of proxies entitles to cast sixty percent (60%) of the votes of each class of membership shall constitute a quorum. If the required quorum is not forthcoming at any meeting, another meeting may be called, subject to the notice requirement set forth above, and the required quorum at such subsequent meeting shall be one-half of the required quorum of the proceeding meeting. No such subsequent meeting shall be held ore than sixty (60) days following the preceding meeting. In the event that two-thirds (2/3) of the Class A membership or two thirds (2/3) of the Class B membership are not present in person by proxy, members not present may give their written assent to the action taken thereat. Annexation under this Section requires the consent of two-thirds (2/3) of each class of members, and shall be evidenced by recording in the Register?’s Office of Shelby County, Tennessee, an amendment to this Declamation showing the property to be added, any resulting changes to this Declaration, or any exhibits thereto, and any other information deemed necessary or proper.

4.03 Notwithstanding the foregoing, if within twenty-five (25) years of the date of the incorporation of the Association, the Declarant should develop Additional Tracts within the areas described in Exhibit ?“B?”, any portion of such Additional Tracts may be annexed to the Properties without the necessity of obtaining the approval or assent of the Class A members, or any other person entity, any other provision of this Declaration to the contrary notwithstanding, and said lands on the date of annexation shall be deemed a part of the Properties and be subject to this Declaration. The annexations shall be made by recording in the Register?’s Office of Shelby County, Tennessee, a statement of Declarant showing the property to be added, any resulting changes to this Declaration, or any exhibits thereto, and any other information which Declarant may deem necessary or proper. Additional Tracts or portions thereof resulting total property is contiguous. Copies of such recorded statements shall be mailed or delivered to all owners of record of Lots affected and the Board of Directors.

ARTICLE 5. Covenant for Maintenance Assessments.
5.01 Creation of the Lien and Personal Obligation of Assessments. The Declarant, for each Lot owned within the Properties, hereby covenants, and each Owner of any Lot by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay the Association: 1)annual assessments or charges, and 2) special assessments for capital improvements, such assessments to be established and collected as hereinafter provided. The annual and special assessments, together with interest, costs and reasonable attorney?’s fees, shall be a charge on the land and shall be a continuing lien upon the property against which each such assessment is made. Each such assessment, together with interest, costs and reasonable attorney?’s fees, shall also be the personal obligation of the person who was the Owner of such property at the time when the assessment fell due. The personal obligation for delinquent assessments shall not pass to his successors in title unless expressly assumed by them.

5.02 Purpose of Assessments. The assessments levied by the Association shall be used exclusively for the improvement, periodic maintenance, repair, and replacement of improvements to the Common Area, and any reserves necessary and proper for such purposes.

5.03 Maximum Annual Assessment. Until January 1st of the year immediately following the recording of this Declaration in the Shelby County Register?’s Office, the maximum annual assessment shall be One Hundred Eighty Dollars ($180.00) per Lot.

(a) From and after January 1st of the year immediately following said recording, the maximum annual assessment may be increased each year not more than ten percent (10%) above the maximum assessment for the previous year without a vote of each class of membership.
(b) From and after January 1st of year immediately following the said recordation, the maximum annual assessment may be increased above ten percent (10%) by a vote of two-thirds (2/3) of each class of members who are voting in person or by proxy, at a meeting duly called for this purpose.
(c) The Board of Directors may fix the annual assessment at an amount not in excess of the maximum.
5.04 Special Assessments for Capital Improvements. In addition to the annual assessments authorized above, the Association may levy, in ant assessment year, a special assessment applicable to that year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Areas, including fixtures and personal property related thereto, provided that any such assessment shall have the assent of thwo-thirds (2/3) of the votes of each class of members who are voting in person or by proxy at a meeting duly called for this purpose.

5.05 Notice and Quorum for Any Action Authorized Under Sections 5.03 and 5.04. Written notice of any meeting called for the purpose of taking any action authorized under Sections 5.03 or 5.04 shall be sent to all members not less than ten (10) days nor more than sixty (60) days in advance of the meeting. At the first such meeting called, the presence of members or of proxies entitled to cast sixty percent (60%) of all votes of each class of membership shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be one-half (1/2) of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting.

5.06 Uniform Rate of Assessment. Both annual and special assessments must be fixed at a uniform rate for all Lots and may be collected on a monthly basis, provided that the rate set for Lots owned by Declarant shall be fixed at one-fifth (1/5) the assessment rate for the other Lots.

5.07 Date of Commencement of Annual Assessments. The annual assessments provided for herein shall commence as to all Lots on the first day of the month following the initial conveyance of any Common Areas to the Association. The first annual assessment shall be adjusted according to the number of months remaining in the calendar year. The Board of Directors shall fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every Owner subject thereto. The due dates shall be established by the Board of Directors. The association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid.

5.08 Effect of Nonpayment pf Assessments: Remedies of the Association. Any assessments which are not paid when due shall be delinquent. If the assessment is not paid within fifteen (15) days after the due date, the assessment shall bear interest from the due date at the rate set by the Association, plus a penalty equal to five percent (5%) of the amount of the assessment. The Association may bring an action at law against the Owner to collect the assessment or foreclose the lien against the property. No Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the Common Area or abandonment of his Lot. The Owner of a Lot on which there are delinquent assessments shall not be permitted to participate or vote in any meeting of the Association, and may, along with his guests and the occupants of his Lot, be prohibited, by properly adopted resolution of the Board if Directors of the Association, from using specified Common Areas or other privileges of membership in the Association.

5.09 Subordination of the Lien to Mortgages. The lien of the assessments provided for herein shall be subordinate to the lien of any first mortgage. Sale or transfer of any Lot shall not affect the assessment lien. However, the sale or transfer of any Lot pursuant to mortgage foreclosure or any proceeding in lieu thereof, shall extinguish the lien of such sale or transfer. No sale or transfer shall relieve such Lot from liability for any assessment thereafter becoming due or from the lien thereof.

ARTICLE 6. General Provisions.

6.01 Enforcement. The Declarant, Association or any Owner, shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants, reservations, lien and charges now or hereafter imposed by the provisions of this Declaration. Failure by the Declarant or Association or by any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter.
6.02 Severability. Invalidation of any one of these covenants or restrictions by judgement or court shall in no wise affect any other provisions which shall remain in full force or effect.
6.03 Amendment. The covenants and restrictions of the Declaration shall run with the bind the land for a term of twenty (20) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (11) years. This Declaration may be amended by an instrument signed by not less than seventy-five percent (75%) of the Lot Owners. Any amendment must be recorded.
6.04 Easements. This Declarant reserves and the Association shall be bound to convey to Declarant, or its designees, any easement requested by the Declarant for the development and maintenance of any portion of the Properties, Common Areas, or Additional Tracts.
6.05 Declarant?’s Reservation of Rights Respecting Use of the Properties. The Declarant shall not be obligated to improve, develop or subdivide any part of the Properties in any specific manner or time, or for any specific use, the Declarant reserving unto itself, its heirs or assigns, all rights and privileges with respect to any portion of the Properties which it owns.
Declarant may delete from the operation of this Declaration any portion of the Properties owned by Declarant and not subdivided, or any portion of the Properties owned by Declarant and within the boundaries of a recorded subdivision plat have been conveyed by Declarant by warranty deed.