Encino Rio

CC & R - Covenants, Conditions and Restrictions

DECLARATION

OF
COVENANTS, CONDITIONS AND RESTRICTIONS
FOR
ENCINO RIO SUBDIVISION, UNIT ONE
A PLANNED UNIT DEVELOPMENT
IN THE CITY OF SAN ANTONIO,
BEXAR COUNTY, TEXAS

ARTICLE I DEFINITIONS 1

ARTICLE II DECLARATION, DECLARANTS, DEVELOPERS AND ASSOCIATION 3
Section 2.1 Declaration 3
Section 2.2 Declarant and Developer 4
Section 2.3 Association 4
Section 2.4 Annexation 4
.
ARTICLE III RESTRICITIONS ON USE OF LOTS 5
Section 3.1 Residential Use 5
Section 3.2 Single-Family Use 5
Section 3.3 Restrictions on Re-Subdivision 6
Section 3.4 Uses Specifically Prohibited 6

ARTICLE IV CONSTRUCTION OF IMPROVEMENTS 8
Section 4.1 General Standards 8
Section 4.2 Garage Required 8
Section 4.3 Driveways 8
Section 4.4 Construction Specifically Regulated 8
Section 4.5 Minimum Floor Area 10
Section 4.6 Approved Materials 10
Section 4.7 Side, Front and Rear Setback Restrictions 11
Section 4.8 Waiver of Front Setback Requirements 11
Section 4.9 Fences and Walls 11
Section 4.10 Sidewalks 11
Section 4.11 Mailboxes 11
Section 4.12 Signs Advertising the subdivision lots 11
Section 4.13 Landscaping/Fencing Plans 12
Section 4.14 Destruction 12
Section 4.15 Developer Approval 12

ARTICLE V ARCHITECTURAL CONTROL COMMITTEE 12
Section 5.1 Appointment 12
Section 5.2 Term; Successors; Compensation; Liability 12
Section 5.3 Authority 13
Section 5.4 Procedure for Approval 14
Section 5.5 Standards 14
Section 5.6 Termination 14
Section 5.7 Liability of Developer and the Committee 15

ARTICLE VI SPECIAL FENCING AND LANDSCAPING PROVISIONS 15
Section 6.1 Fences, Walls, Sprinkler Systems and Other Improvements in the Restricted Area 15
Section 6.2 Landscaping 15
Section 6.3 Restricted Area and Fence Encroachment Easements 16
Section 6.4 Maintenance of Restricted Area by Individual Lot Owner 16
Section 6.5 Termination 17
Section 6.6 Association’s and Lot Owners’ Rights 17

ARTICLE VII MAINTENANCE 17
Section 7.1 Property and Lot Maintenance 17
Section 7.2 Maintenance of Improvements 18
ARTICLE VIII MEMBERSHIP AND VOTING RIGHTS IN THE ASSOCIATION AND VOTING RIGHTS OF THE LOT OWNERS 18
Section 8.1 Membership in the Association 18
Section 8.2 Voting Rights 18
Section 8.3 Board of Directors 19
Section 8.4 Bylaws 19
Section 8.5 Inspection Rights 19

ARTICLE IX ASSESSMENTS 19
Section 9.1 Creation of Lien and Personal Obligation of Assessments 19
Section 9.2 Annual Assessment 19
Section 9.3 Capital Reserve Fund. Initial Reserve Contribution 20
Section 9.4 Purposes 20
Section 9.5 Special Assessment for Capital Improvements 21
Section 9.6 Effect of Nonpayment of Assessments; Remedies of Developer or the Association 21
Section 9.7 Subordinated Lien of Secure Payment 22
Section 9.8 Duration 22
Section 9.9 Declarant and Developer Not Liable for Association Deficits 22

ARTICLE X PROPERTY FIGHTS IN COMMON AREA 22
Section 10.1 Property Rights in Common Area 22
Section 10.2 Common Area Easements 22
Section 10.3 Delegation of Rights 22
Section 10.4 Conveyance of Common Area to Association 23
Section 10.5 Entry Houses and Gates 23
Section 10.6 Dissolution of the Association 23

ARTICLE XI GENERAL PROVISIONS 23
Section 11.1 Utility Easements 23
Section 11.2 Recorded Plat 23
Section 11.3 Mortgages 23
Section 11.4 Term 23
Section 11.5 Severability 24
Section 11.6 Binding Effect 24
Section 11.7 Enforcement 24
Section 11.8 Other Authorities 24
Section 11.9 Addresses 25

EXHIBIT A Lot Description of the Subdivision
EXHIBIT B Map of Annexable Area

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS

~ KNOW ALL PERSONS BY THESE PRESENTS THAT:

WHEREAS, PULTE HOMES OF TEXAS L.P. ("Pulte") is the current owner of all of the real property to be located in the ENCINO RIO SUBDIVISION, UNIT ONE, a Planned Unit Development, in the City of San Antonio, Bexar County, Texas, according to the lot description attached hereto as Exhibit A and incorporated herein by reference;

WHEREAS, Pulte is hereinafter sometimes referred to herein as the "Declarant"; and

WHEREAS, for the purpose of promoting the development of the Subdivision in a first-class manner, Declarant desires to place certain restrictions on the land comprising the Subdivision as more fully set forth herein.

NOW, THEREFORE, for and in consideration of promises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Declarant hereby declares as follows:

ARTICLE II
DEFINITIONS

The following words and phrases when used in this Declaration (unless the context shall otherwise prohibit) shall have the following meanings:

Additional Property - shall mean and refer to property which is added to the Subdivision pursuant to Section 2.4 of this Declaration or any Amended or Supplemental Declaration.

Approved Materials - as defined In Section 4.6 hereof.

Association - the homeowners' association (if any) established in connection with this Subdivision in the manner set forth in Section 2.3 hereof, which homeowners' association (if formed) shall be a Texas non-profit corporation. The provisions of this Declaration concerning the Association shall become effective upon formation of the Association (if formed) and shall continue to be effective during the period of time that the Association is in existence pursuant to this Declaration.

(d) Board - the board of directors of the Association (if formed), as set forth in Section 8.3
(e) Builders - as defined in subparagraph (I) below.

(f) Common Area - as defined in Section 9.3(a) hereof.

(g) City - the City of San Antonio, Texas.

(h) Committee - the Architectural Control Committee (if formed), as provided in Section 5.1

(i) County- Bexar, County, Texas.

(j) Declarant- Pulte Homes of Texas, L.P. and any successors thereto as provided in
Section 2.2 hereof.

(k) Declaration - this Declaration of Covenants, Conditions and Restrictions, as amended from time to time as expressly provided herein.

(I) Developer - Pulte Homes of Texas, L.P., and any successors thereto or assignees thereof as provided in Section 2.2 hereof, who undertake the coordination of the development of the land in the Subdivision into lots, or succeed by assignment from the Developer to some or all of the Developer's rights hereunder, but specifically excluding those persons or entities (the "Builders'? whose activities are limited to the construction of residences on developed lots, or the purchase and resale of previously developed lots and who have not been assigned any of the Developer’s~ rights hereunder.

FHA - the Federal Housing Administration, or any successor agency or authority thereto.

Land - all of the real property located in the Subdivision including, without limitation, the Common Area (if any), Recreation Center (if any), Restricted Area and all lots.

Lot(s) - any one or more numbered lots or plots as shown or to be shown on the Plat(s) (as hereinafter defined), not including any Common Area (if any), public areas, parks, esplanades, tracts owned or subsequently acquired by any public body, or any plot or tract shown as a reserve lot (whether unrestricted or not) on the Plat(s). Without limiting the foregoing, all references herein to lots shall refer to and include, with respect to any land which has not been platted and fully developed into single family residential lots, the numbered plots or lots reflected on the Preliminary Plat(s) (as defined below).

(p) Lot Approval Date - with respect to a particular lot, the date that (i) this Declaration is filed of record or the Association is formed, whichever is later, or (ii) Developer otherwise determines.
Maintenance fund - as described in Section 9.2 hereof.

(r) Owner - the record owner, whether one or more persons or entities (including contract sellers, the Developer and Builders), of fee simple title to a lot, including lots shown on the Preliminary
Plat(s), but specifically excluding those having an interest merely as security for the performance of an obligation.

Planned Unit Development - This Subdivision has been designated as a Planned Unit Development pursuant to Chapter 35 of the City Code of the City of San Antonio, Texas. The Subdivision Plat creates for use as such, subject to the limitations set forth herein, certain private streets and easements shown thereon, and such Subdivision Plat further establishes certain dedications, limitations, reservations and restrictions applicable to the existing property. All dedications, limitations, restrictions and reservations shown on the Subdivision Plat are incorporated herein and made a part hereof as if fully set forth herein, and shall be construed as being adopted in each and every contract, deed or conveyance executed or to be executed by or on behalf of Declarant, conveying said property or any part thereof.

(t) Plat(s)- the plat(s) to be recorded after the date hereof for the Subdivision as such plat(s) may be replatted and amended from time to time, which plat(s) shall reflect the City approved or proposed City approved platting, location and size of all lots in the Subdivision and the location of the streets and easements on, adjacent to, or affecting such lots.

(u) Residence - a freestanding single family residential dwelling constructed on a lot, as defined in Section 3.1 hereof.

Restricted Area - the portion of the lots subject to any specified use as provided in Section 6.1 hereof.

(w) Subdivision - as defined in the recitals hereof.

VA - the Veterans Administration, or any successor agency or authority thereto.

ARTICLE II
DECLARATION, DECLARANTS, DEVELOPER AND ASSOCIATION

Section2.1 Declaration.

(a) Declarant hereby declares that all of the land in the Subdivision shall be held, sold and conveyed subject to the easements, covenants, conditions and restrictions contained in this Declaration,
which easements, covenants, conditions and restrictions (i) are for the purpose of establishing a general scheme for the development and construction of residences on the land in the Subdivision, (ii) are for the purpose of enhancing and protecting the value, attractiveness, appeal and desirability of all land within the Subdivision, (iii) shall run with all land within the Subdivision and be binding on all parties having or acquiring any right, title or interest in the land or any part thereof, and (iv) shall inure to the benefit of each owner of any portion of the land. The easements, covenants, conditions and restrictions contained in this Declaration are made for the mutual and reciprocal benefit of each and every owner of any portion of the land within the Subdivision and are intended to create (i) mutual and equitable servitudes upon each portion of land including each of the lots, tracts and Common Area, if any, in favor of each and all other
portions and tracts of land within the Subdivision, (ii) reciprocal rights between the respective owners of any portion of the land, and (iii) privity of contract and estate between the grantees of each portion of the land, their heirs, legal representatives, successors and assigns.

(b) This Declaration may be amended in any respect and in whole or in part at any time by recording an instrument containing such amendment(s) in the deed records of the County. Such amendments may be made by the lot owners if such amendments have been approved by the owners representing at least two-thirds (2/3rds) of (i) all votes of each class of voting membership (if the Association has been created and is in existence as of the date of such vote), or (ii) the votes of the lot owners at a meeting at which a quorum is present if the Association has not been created or is no longer in existence as of the date of such vote, whichever applies; provided, however, until the earlier of (1) the construction of residences on all lots within the Subdivision, or(2) ten (10) years following the recording of this Declaration, no such amendment shall be valid or effective without the joinder of Developer and the Committee (if formed) unless such party waives its right to consent to such amendment; provided, further, if the Association is formed and FHA or VA approval is obtained for the lots to permit HUD insured mortgages for home purchases, then as long as the Association has Class B members, any amendment which affects or alters any provisions hereof directly governed or regulated by the FHA or VA shall also be subject to the approval of the FHA, VA and Department of Housing and Urban Development ("HUD") unless such amendments merely correct errors in this Declaration or are required to comply with any requirements imposed by HUD, FHA or VA.

Section 2.2 Declarant and Developers.

(a) The initial Declarant of this Declaration is Pulte. After this Declaration is created and filed of record, the Declarant shall have no further rights, duties or obligations hereunder, and ail of their rights shall immediately pass to and vest in the Developer hereunder.

(b) The initial Developer shall be Pulte. The Developer shall have the right, but not the obligation, in the event of the transfer of all or any portion of its portion of the Subdivision to another person or entity, to convey all or a portion of the rights and obligations of such Developer to such transferee, whereupon such transferee shall become "Developer" for all purposes hereunder with respect to, but only with respect to the portion of .the Subdivision so conveyed to such transferee. The Developer shall not in any way or manner be held liable or responsible for any damages occasioned by violations of restrictions set forth in this Declaration by any person or entity other than itself. If the Developer conveys a portion (but not all) of the rights and obligations of such Developer hereunder to one or more transferees, then (i) the rights of such Developer hereunder shall be exercised by the transferring Developer based on the affirmative or consensus majority vote of the persons including the transferring Developer possessing such rights, which vote shall be allocated to such persons and weighted based on the number of lots or number of proposed lots owned by such persons, except to the extent such rights are otherwise restricted or specified in the conveyance document, and (ii) the obligations of the transferring Developer hereunder shall be performed by or enforced against the transferring Developer or the party to whom such obligations have been conveyed by the transferring Developer hereunder. If either Developer conveys all of its land in the Subdivision to owner(s) who do not succeed to the rights and obligations of the transferring Developer hereunder, then the lot owners shall obtain the rights of the transferring Developer herein.

Section2.3 Association.

(a) Commencing on the date hereof and continuing until at least ninety-five percent (95%) of all lots in the Subdivision have been sold to lot owners and have residences thereon, Developer shall have the sole right, but not the obligation, to create the Association as a Texas non-profit corporation. After more than ninety-five percent (95%) of all lots in the Subdivision have been sold to lot owners and have residences thereon, the Association may be created and formed (i) by Developer, or (ii) by the lot owners if the lot owners representing at least two-thirds (2/3rds) of all lots assent to create the Association.

(b) Except as stated above, the Declarant and Developer shall have no responsibility or liability for (i) the creation, formation, management or operation of the Association, (ii) any actions taken or omitted to be taken by or on behalf of the Association as a result of, in connection with, under, or pursuant to this Declaration or the Subdivision, or (iii) any liabilities, obligations, debts, actions, causes of action, claims, debts, suits or damages incurred by or on behalf of, or arising in connection with the Association, the Subdivision, or the duties and obligations of the Association pursuant to this Declaration.

Section 2.4 Annexation. Additional land may become subject to this Declaration in the following manner:

Additions by Declarant or Developer - The Declarant or Developer, its successors and assigns, shall have the right to bring within the scheme of this Declaration, and without the consent of Members, additional properties in future stages of the development and within ten years from the date of this instrument; provided that such additions lie within the area outlined on Exhibit B attached hereto and incorporated herein by reference. Declarant or Developer, its successors and assigns, shall not be bound to make any additions to the Property. Any additions authorized under this and the succeeding subsections shall be made by filing of record a Declaration of Covenants, Conditions and Restrictions which shall extend the scheme of the covenants, conditions and restrictions of this Declaration to such real property; provided, however, that such Supplementary Declaration may contain such modifications of the covenants, conditions and restrictions contained in this Declaration as may be necessary or appropriate to reflect the different character, if any, of the added real properties and as are not materially inconsistent with this Declaration and which do not adversely affect the concept of this Declaration; and the execution thereof by the Declarant and/or Developer shall constitute all requisite evidence of the required approval thereof. In no event, however, shall any such instrument be construed so as to revoke, modify or add to the covenants established by this Declaration as they are applicable to the property. Furthermore, the following provisions shall apply:

(b) Prior to the formation (if ever) of the Association and at all times that the Association is no
longer in existence, additional real property outside of that outlined on Exhibit B hereto may be added and annexed to the land and scheme of the Declaration by (i) the Developer in their sole discretion, or (ii) the consent of the owners representing at least two-thirds (2/3rds) of all lots.

(c) The Association (if formed) may add or annex Additional real property to the land and
scheme of this Declaration by obtaining the consent of the owners representing at least two-thirds (2/3rds) of all votes of each class of voting membership. If FHA or VA approval is obtained for the lots to permit HUD insured mortgages for home purchases, then, as long as the Association has Class B members, any Subdivision or annexation of Additional real property to the land and scheme of this Declaration shall also be subject to the approval of FHA, VA and HUD.

(d) In the event any person or entity other than the Developer desires to add or annex
Additional residential properties and/or common areas to the scheme of this Declaration, such proposed annexation must have the prior written consent and approval of the Developer and at least two-thirds (2/3rds) of the votes of all lot owners, excluding for such purposes the lots owned by the Developer.

(e) Any real property annexations made pursuant to this Section 2.4, when made, shall
automatically extend the jurisdiction, functions, duties and membership of the Developer, Association (if formed) and Committee (if formed) to the real properties added or annexed.

ARTICLE III
RESTRICTIONS ON USE OF LOTS

Section 3.1 Residential Use. Except for the lots (if any) on which any Common Area (if any) is located, all lots shall be used only for single-family private residential purposes and related amenities (including, without limitation, such amenities as may be located on the Common Area (if any) from time to time as provided herein and the Recreation Center, if any). Except on the Common Area (if any) or on the lot(s) on which the Recreation Center (if any) is located, no building or structure shall be erected, altered, placed or permitted to remain on any lot other than one (1) freestanding single-family residence per lot, which residence may not exceed two (2) stories in height, one in-ground pool, one private garage, and appurtenant sidewalks, driveways, curbs, fences and storage or mechanical buildings not otherwise prohibited hereby.

Section 3.2 Single-Family Use. Each residence may be occupied by only one (1) family consisting of persons related by blood, adoption or marriage or no more than two (2) unrelated persons living and cooking together or in the same residence as a single housekeeping unit; provided, however, that nothing contained herein shall prevent occasional temporary occupancy by guests of the family or occupancy by full-time domestic servants or medical assistants employed by the family. No building or structure intended for or adapted to commercial, business or professional purposes, nor any apartment house, duplex, double house, lodging house, rooming house, dormitory, church, school, hospital, sanitarium, guest house, servant's quarters or multiple-family dwelling shall be erected, placed, permitted or maintained on any lot.

Section 3.3 Restrictions on Resubdivision. Except for the initial subdivision and platting of the land contemplated or undertaken by the Developer or any replatting undertaken by Developer, none of the lots shall be divided into smaller lots.

Section 3.4 Uses Specifically Prohibited.

(a) No more than two (2) automobiles per dwelling unit may be kept on any Lot in such
manner as to be visible from any other portion of the Subdivision for any period in excess of seventy-two hours. No automobiles or other vehicles may be parked overnight on any roadway within the Subdivision.

(b) No machinery, boat, marine craft, boat or motorcycle trailer, hovercraft, aircraft,
recreational vehicle, pick-up camper, travel trailer, motor home, camper body or similar vehicle or
equipment may be (i) parked for storage in the front driveway or front yard of any lot or residence, (ii) parked for storage on any street in the Subdivision, (iv) parked for storage in the side or rear yard of any lot or residence unless substantially concealed from view of other lots at street level. No such vehicles or equipment shall be used as a residence or office temporarily or permanently, provided that this restriction shall not apply to any vehicle or equipment temporarily parked and in use for the construction, maintenance or repair of a residence in its immediate vicinity. For purposes of this Declaration, any vehicle or equipment shall be "parked for storage" if it is parked on a lot for more than seven (7) consecutive days without it being driven and used on a public street or thoroughfare.

(c) Trucks with tonnage in excess of one (1) ton and any vehicle with painted or affixed
advertisement shall not be permitted to park overnight within the Subdivision except those used by
Developer or a Builder during and directly related to the development of the Subdivision or construction of improvements on a lot in the Subdivision.

(d) No vehicle of any size which transports dangerous, flammable, hazardous, corrosive or
explosive cargo may pass through or be kept in the Subdivision at any time.

(e) Except to the extent expressly permitted hereby, no vehicles or similar equipment shall be
parked or stored in any area visible from any street except passenger automobiles, passenger vans, motorcycles, pick-up trucks (with tonnage not in excess of one (1) ton) and pick-up trucks with attached bed campers (with tonnage not in excess of one (1) ton) that are in operating condition with current license plates and inspection stickers and in daily use as motor vehicles on the streets and highways of the State of Texas.

(f) No manufacturing, industrial, oil or gas drilling, oil or gas development, smelting, refining,
quarrying or mining operations of any kind shall be permitted in the Subdivision, nor shall oil or gas wells, tanks, tunnels, pipelines other than natural gas lines installed and maintained by a utility company generally serving the public and the residences in the Subdivision, mineral excavations or shafts be permitted upon or in any part of the Subdivision. No derrick or other structure, equipment or machinery designed for use in quarrying or boring for oil, natural gas or other minerals shall be erected, maintained or permitted within the Subdivision.

(g) No animals of any kind shall be raised, bred or kept on any land in the Subdivision except
that dogs, cats or other household pets may be kept for the purpose of providing companionship for the residents of any residence constructed on a lot. Animals are not to be raised, bred or kept for commercial purposes or for fur, clothing or food. Without limiting the foregoing, it is the general purpose of these provisions to restrict the use of the Subdivision so that no person shall permanently or temporarily quarter in the Subdivision live cows, horses, bees, hogs, sheep, goats, guinea fowls, ducks, chickens, turkeys, skunks, snakes or any other reptiles, mammals or animals (domesticated, household or otherwise) that may interfere with or threaten the quietude, health or safety of the community. No more than four (4) domesticated household pets will be permitted on each lot. Pets must be restrained or controlled by a leash, rope, or similar restraint or a basket, cage, or other container when not confined within the boundaries of the owner's back lot inside a fenced area or within the residence. All lots shall be kept clean and free of pet waste and debris. All animals shall be properly tagged for identification and shall be properly vaccinated, bathed and otherwise kept clean to avoid health or safety risks and concerns.

(h) No portion of the Subdivision shall be used as a dumping ground for rubbish or a site for
the accumulation of unsightly materials of any kind including, without limitation, broken or rusted
equipment, disassembled, incomplete ~ inoperable can or vehicles or equipment and discarded
appliances and furniture. No cans, bags, containers or receptacles for the storing or disposal of trash, garbage, refuse, rubble, or debris shall be stored, kept, placed or maintained on any lot where visible from any street except solely on a day designated for removal of garbage and rubbish and on which days only such cans, bags, containers, and receptacles may be placed in front of a residence and beside a street for removal, but shall be removed from view before the following day. No incinerators may be erected or maintained in the Subdivision. Materials incident to construction of improvements may be stored on lots during construction so long as construction progresses on such lots without delay.

(i) No garage or other out-building (except for sales offices and construction trailer owned
and used by the Developer or Builder on a lot in accordance with the provisions of Section 3.4(m) below) shall be occupied by any owner, tenant or other person on a lot prior to the erection and completion of a residence on such lot.

(j) Except as provided in Sections 3.4(m) and (n) below, no lot, residence or improvement
shall be used for business, professional, commercial or manufacturing purposes of any kind. Except in connection with the activities of Developer and Builders described in Sections 3.4(m) and (n) below, no activity, whether for profit or not, shall be conducted in the Subdivision which is not related to single-family residential purposes or the development, marketing, construction or sale of the land, lots or residences thereon. No noxious or offensive activity shall be undertaken within the Subdivision, nor shall anything be done which is or may become an annoyance or nuisance to the Subdivision or its residents. Nothing in this Section 3.4(i) shall prohibit an owner's use of a residence for quiet, inoffensive activities such as tutoring or giving art or music lessons so long as such activities do not violate the restrictions set forth above and do not materially increase the number of cars parked on the street or interfere with adjoining owners' use and enjoyment of their residences and yards.

(k) The drying of clothes in public view is prohibited. The owners and occupants of any lots at
the intersections of streets or adjacent to parks, playgrounds or other facilities where the rear yard is visible to public view shall construct a suitable enclosure to screen from public view equipment which is incident to normal residences, such as clothes drying equipment, yard equipment, lawn furniture, pool filtration or composting equipment and stored materials.

(I) Except within fireplaces in the main residential dwelling and except for outdoor cooking in
safe and sanitary residential barbecue grills, no burning of anything shall be permitted anywhere within the Subdivision.

(m) No use shall be conducted in the Subdivision which will violate any of the deed
restrictions, other encumbrances of record, zoning or planned use designation, or development or
building restrictions or regulations imposed by the City or County, all as such may be applicable to the Subdivision from time to time. Furthermore, no use shall be conducted which shall conflict with FHA or VA regulations (if applicable) or any regulation or ordinance of any other applicable governmental entity or agency.

(n) Notwithstanding anything contained Section 3.4(h) or (i) to the contrary, Developer or a
Builder may temporarily use a residence, garage or trailer as a sales, marketing or construction office for the sole purpose of enabling the Developer to develop, construct, market and sell its lots and residences in the Subdivision or in any other subdivision or subdivisions owned by Developer.

(0) Notwithstanding anything contained in this Declaration to the contrary, Developer, the
Committee (if formed) or the Association (if formed) may construct, or cause to be constructed, a
recreational center (the "Recreation Center') in the Subdivision for the use of all owners of the lots in the Subdivision. Without limiting the foregoing, the Recreation Center (if any) may include, without limitation, swimming and other recreational and clubhouse facilities deemed desirable by Developer, the Committee or the Association, as applicable. If constructed, operation of the Recreation Center shall be managed by the Association or such other entity as the Developer may designate from time to time.

ARTICLE IV
CONSTRUCTION OF IMPROVEMENTS

Section 4.1 General Standards. All construction in the Subdivision shall be in accordance with the standards developed pursuant to Section 5.5 hereof, unless otherwise approved by the Developer or Committee (if formed) as provided in Article V hereof.

Section 4.2 Garage Required. Each residence shall have a private garage suitable for parking not less than two (2), nor more than four (4), standard size automobiles and, unless otherwise permitted by the Developer, Association (if formed) or Committee (if formed), each garage shall be attached to such residence, open to the front, side or rear of the lot and conform in appearance, design and materials to the main residence. No garage shall be enclosed or otherwise altered to prevent the parking of at least two (2) conventional automobiles completely within such garage unless an Additional garage is constructed which meets the standards of this Article IV, is in compliance with existing City ordinances, and is approved by the Developer or Committee (if formed). Temporary enclosure of garages by Developer or a Builder for marketing, sales, construction or office purposes is permitted hereby, provided such enclosures and offices are architecturally compatible with the residence and this Declaration and are used in accordance with' the provisions of Section 3.4(m) hereof. If any garage is so enclosed by Developer or a Builder, such garage shall be converted to use solely for the parking of automobiles as described above prior to the sale or lease of such residence to the occupying owner.

Section 4.3 Driveways. All driveways shall be surfaced with concrete. No asphalt driveways shall be permitted.

Section 4.4 Construction Specifically Regulated.

(a) No temporary dwelling, shop, trailer or mobile home of any kind nor any improvement of a
temporary character (except children's playhouses, dog houses, greenhouses, gazebos, lawn furniture and buildings as approved by Developer or the Committee (if formed) for storage of lawn or pool maintenance equipment, which may be placed on a lot only in areas not visible from any street adjacent to the lot shall be permitted on any lot except that the Developer and any Builder may have temporary dwellings, trailers or improvements such as a sales office and/or construction trailer on a given lot in accordance with the provisions of Section 3.4(m) hereof. No building material of any kind or character shall be placed or stored upon the lot until the owner thereof is ready to commence construction of improvements thereon, and then such material shall be placed only within the properly lines of the lot upon which the improvements are to be erected.

(b) No structure of a temporary character, such as a trailer, tent, shack, barn or other out-
building, shall be used on any land at any time as a dwelling house; provided, however, that Developer or any Builder may maintain and occupy model houses, sales offices and construction trailers in accordance with the provisions of Section 3.4(m) hereof.

(c) No individual water supply system which is not part of the public water supply system
serving the entire Subdivision shall be permitted in the Subdivision.

(d) No individual sewage disposal system which is not part of the public sewage disposal
system serving the entire Subdivision shall be permitted in the Subdivision.

(e) No air-conditioning apparatus shall be installed on the ground in front of a residence or on
the roof of any residence unless screened by the roof structure in a manner approved by the Developer or Committee, if formed. No air-conditioning apparatus nor evaporative cooler shall be attached to any front wall or window of a residence.

(f) Except with the prior written permission of the Developer or Committee (if formed)l
no antennas, dishes or other equipment for receiving or sending audio or video messages or transmissions shall be pem7itted in the Subdivision except antennas for private AM and FM radio reception and UHF and VHF television reception. All antennas shall be located inside the attic of the residence and one satellite dish or other similar instrument or structure may be placed in the back yard of each lot so long as it does not exceed the maximum size of 18" x 20" and is completely screened from view from any street, alley, park or other public area.

(g) No fences, walls, hedges or shrubs which obstruct sight lines at elevations between two
(2) and six (6) feet above the roadway may be placed or permitted to remain on any comer lot.

(h) Except for children's playhouses, dog houses, greenhouses, gazebos and buildings as
approved by the Developer or Committee (if formed) for storage of lawn and pool maintenance
equipment, no building previously constructed elsewhere shall be moved onto any lot, it being intended that only new construction be placed and erected thereon.

(i) Within platted easements on each lot, no permanent structures, paving other than
driveways, sidewalks and flatwork installed in compliance with all applicable codes and laws and the remaining provisions of this Section 4.4(i), planting or materials shall be placed or permitted to remain which may damage or materially interfere with the installation, operation and maintenance of utilities or change, obstruct or retard the flow of water through or within drainage channels and/or easements.

(j) After the Developer has developed the lots, the general grading, slope and drainage plan
of a lot may not be altered, nor may any dams, berms, channels or swales be constructed or excavated, without the prior approval of Developer or Committee (if formed), the City (if applicable) and other appropriate agencies having authority to grant such approval.

(k) No sign of any kind shall be displayed to the public view on any lot except one (1) alarm
monitoring sign of not more than one (1) square foot and one (1) sign of not more than five (5) square feet advertising the property for rent or sale, or signs used by Developer or any Builder to advertise the Property or other Properties. Any such signs must conform to the requirements of Section 4.12 hereof (if applicable) and may not (i) describe the condition of the residence or lot, (ii) describe, malign or refer to the reputation, character or building practices of Developer, Builder or any other lot owner, and (iii) discourage or otherwise impact or attempt to impact anyone's decision to acquire a lot or residence in the Subdivision. Declarant, Developer, Association (if formed) or their respective agents shall have the right to remove all signs, billboards or other advertising structures including, without limitation, political or private sale (such as "garage" sale) signs, that do not comply with this Section 4.4(k), and in so doing shall not be subjected to any liability for trespass or any other liability in connection with such removal.

(l) All containers and other facilities for trash disposal must be located and screened in a
manner approved by the Developer or Committee (if formed).

(m) All exterior mechanical equipment, including, without limitation, heating, air conditioning
and ventilation ("HVAC”) equipment, shall be located and screened in a manner approved by the
Developer or Committee (if formed). Without limiting the foregoing, no window air conditioning units shall be permitted in any residence on any lot.

(n) All construction shall comply at all times with this Declaration and all other applicable deed
restrictions, encumbrances of record, zoning ordinances and requirements, planned use and
development restrictions, building codes, FHA and VA requirements and regulations and all other
applicable ordinances and regulations.

(o) All roof surfaces shall have at least (i) a five (5) foot to twelve (12) foot pitch or slope on
the main structure, and (ii) a four (4) foot to twelve (12) foot pitch or slope on the garage and porches unless otherwise approved by the Developer or Committee (if formed).

(p) No exterior burglar bars will be permitted on any doors, windows or other openings on a
dwelling situated in the Subdivision. Burglar bars, if installed, must be situated within the interior of such dwelling.

(q) House numbers identifying the address of each house must be placed as close as
possible to the front entry so that the numbers can be easily read from the street. Size, color and material of the numbers must be compatible with the design and color of the house.

(r) Basketball goals, or backboards, or any other similar sporting equipment of either a permanent or temporary nature shall not be placed on any Lot in the Subdivision or where same would be visible from an adjoining street or lot without the prior written consent of the Developer or Committee (if formed). The Developer or Committee (if formed) shall have the authority to establish guidelines for the placement and design of basketball goals and no basketball goal shall be kept or maintained within sight of any street except in accordance with any such guidelines established.

Section 4.5 Minimum Floor Area. Except with respect to the Recreation Center (if any) and any
buildings or structures constructed by the Developer on the Common Area (if any), the total air-
conditioned habitable living area of the main residential structure on each lot, as measured to the outside of exterior walls, but exclusive of porches, garages, patios and detached accessory buildings, shall be not less than fifteen hundred (1500) square feet or the minimum habitable floor area as specified by the City, whichever is greater.

Section 4.6 Approved Materials

(a) Except with respect to any Recreation Center or other buildings or structures (if any)
constructed by the Developer on any Common Area, the total exterior wall area of the front of each residential building including the first and second floor of each two (2) story building constructed or placed on a lot shall be one hundred percent (100%) masonry, and the total exterior wall area of the entire first floor of each residential building constructed or placed on a lot shall be not less than seventy-five percent (75%) masonry, brick, brick veneer, stone, stone veneer, stucco, masonry or other materials approved by the Developer or Committee (if formed). Windows, doors, chimney chases, openings, gables and other areas which are not permitted to have brick by applicable City code and/or building ordinances are excluded from the calculation of the total exterior wall area. The exterior surfaces of the chimney chases shall be fully enclosed by materials approved by the Developer or Committee (if formed).

(c) Roofing materials may be wood shingle, slate, metal, tile or composition or asphalt
shingles. Unless otherwise approved by the Developer or Committee (if formed), composition or asphalt roofing material is restricted to minimum 25 year limited warranty, provided however, that all such roofing materials shall conform to applicable City FHA and VA requirements.

Section 4.7 Side, Front and Rear Setback Restrictions. No dwelling shall be located on any lot
nearer to the front or rear lot line or nearer to the side lot line than the minimum setback lines shown on the Flat or required by the City. In any event, no building shall be located on any lot nearer than twenty (20) feet to, nor further than forty (40) feet from, the front lot line, nor nearer than five (5) feet to any interior side lot line, nor on comer lots nearer than ten (10) feet to the side property line adjoining the street unless approved by Developer or the Committee (if formed) and all applicable governmental agencies and authorities. For all purposes of this Section 4.7, eaves, steps and open porches shall not be considered as a part of the building; provided, however, that this shall not be construed to permit any portion of a building on a lot to encroach upon another lot or to vary from any applicable City requirements.

Section 4.8 Waiver of Front Setback Requirements. With the prior written approval of the Developer or Committee (if formed) and the City (if required), any building may be located further back from the front property line of a lot than provided in Section 4.7 where, in the opinion of the Developer or Committee (if formed), the proposed location of the building will add to the appearance and value of the lot and will not substantially detract from the appearance of the adjoining lots.

Section 4.9 Fences and Walls. The location and type of any fence or wall must be approved by the Developer or Committee (if formed) and must be constructed of masonry, brick, wood or other material approved by the Developer or Committee (if formed) and must comply with all applicable governmental requirements and ordinances. No fence or wall shall be permitted to extend nearer to the front street than (i) forty five (45) feet from the front street, or (ii) the front of the house except as approved by the Developer or Committee (if formed), whichever distance is farther. No portion of any fence shall exceed six (6) feet in height as measured from the lowest point of the Lot, except as approved by the Developer or Committee (if formed).

Section 4.10 Sidewalks. All sidewalks shall conform to all applicable City, FHA and VA specifications and regulations.

Section 4.11 Mailboxes. Mailboxes shall be constructed of a material and design approved by the Developer or Committee (if formed) and the United States Postal Service.

Section 4.12 Signs Advertising the Subdivision or Lots. All signs advertising the entire Property (but not limited to the Property) or any substantial part thereof shall be approved by the Developer or Committee (if formed). All signs shall be maintained in good condition and repair, with a neat and orderly appearance, and shall comply with the applicable ordinances of the City. All signs advertising the Subdivision shall be removed after the later of (a) all buildings to be initially constructed on the advertised lot(s) have been sold or (b) model homes are not being used by the builder or, (c) Developer has completed selling and construction activities for other communities in the vicinity. Developer, the Association or the Committee (if formed) may remove from the Subdivision or any surrounding area any signs which do not comply with this Section 4.12.

Section 4.13 Landscaping/Fencing Plans. Any person or entity other than the Developer planning to landscape or fence areas in the Subdivision other than individual lots shall prepare and submit for approval to the Developer or the Committee (if formed), pursuant to the procedures set forth in Article V, a landscaping/fencing plan for such areas in the Subdivision prior to undertaking any landscaping or fencing in the Subdivision. Without limiting the requirement to obtain approval as noted above, such plan shall be compatible with the existing landscaping or fencing improvements and treatments, if any, in the Subdivision, and shall be in compliance with the terms and provisions hereof.

Section 4.14 Destruction. Any improvements on any lot which are fully or partially destroyed or
damaged by fire, storm or any other peril shall be fully rebuilt and repaired or the debris therefrom fully removed, within a reasonable period of time not to exceed one hundred (100) days after the occurrence of such destruction or damage, unless a written extension is obtained by the owner of such lot from Developer and the Committee (if formed).

Section 4.15 Developer Approval.

(a) Prior to the formation of the Committee (if ever) and during any periods of time after such
formation that the Committee no longer exists, all consents and approvals reserved to the Developer shall be made solely by the Developer.

(b) All consents and approvals reserved to the Developer may be made and provided by the
Committee (if formed) or the Association (if formed) only after the (i) Developer has relinquished its duties hereunder to the Committee or Association or sold or otherwise disposed of all its interest in all of its lots and other property in the Subdivision, or (ii) Developer elects not to exercise such rights, easements and authority.

ARTICLE V
ARCHITECTURAL CONTROL COMMITTEE

Section 5.1 Appointment. The Architectural Control Committee (the "Committee") consisting of three (3) mem6ers may, but shall not be obligated to. be formed by the Developer during the period of time that the Developer owns any interest in any lot, and thereafter (a) by the Board members of the Association (if formed), or (b) by the lot owners representing a majority of the lots. If the Committee is formed by the Developer, then (i) Developer shall initially designate and appoint the members, each appointee to be generally familiar with the residential and community development design matters within other Subdivisions with which Developer has been associated and knowledgeable about those concerns articulated in this Declaration, and (ii) within ninety (90) days after the date that all of the lots have been sold by the Developer, the Board (if the Association has been formed and is in existence as of such date) or the lot owners (if the Association has not been created or is no longer in existence as of such date) shall (A) confirm and approve the membership of the Committee, or (B) appoint one (1) or more successor members of its/their own choosing to the Committee, with such succession to be effective thirty
(30) days after such appointment of such successor(s).

Section 5.2 Term; Successors; Compensation; Liability.

(a) Each member of the Committee shall serve on the Committee until such member resigns
or is removed by the party who appointed such member to serve on such Committee. Without limiting the foregoing, the appointing party may remove its appointed member of the Committee at any time for any reason.

(b) In the event of the death, resignation or removal by the appointing party of any member of
the Committee, such appointing party shall have full authority to designate and appoint a successor within a reasonable period of time. If no such appointment is made on a timely basis, the remaining member(s) of the Committee shall appoint a successor member.

(c) No member of the Committee shall be entitled to compensation for, or be liable for claims,
causes of action or damages arising out of services performed pursuant to this Declaration.

Section 5.3 Authority.

(a) After the initial platting of the land in the Subdivision, the Subdivision shall not be replatted
or re-subdivided, no landscaping shall be undertaken and no building, fence, wall or other structure shall be commenced, erected, placed, maintained or altered on any lot, nor shall any exterior painting of, exterior addition to, or alteration of, such items be made by any party other than Developer, until all plans have been approved by Developer, and if a Committee has been formed and is in existence as of such date then until all plans therefor have been submitted to and approved in writing by a majority of the members of the Committee, as to:

(i) conformity and harmony of the proposed replat and any landscape plan to the
existing development in the Subdivision, surrounding areas, community standards and other developments with which Developer are associated;

(ii) quality of workmanship and materials, adequacy of site dimensions, adequacy of structural design and proper facing of main elevation with respect to nearby streets;

(iii) conformity and harmony of the external design, color, type and appearance of
exterior surfaces and landscaping in relation to the various parts of the proposed improvements and in relation to improvements on other lots in the Subdivision; and

(iv) the other standards set forth within this Declaration or matters in which Developer
or the Committee (if formed), whichever applies, have been vested with the authority to render a final interpretation and decision.

Without limiting the foregoing, Developer or the Committee (if formed), whichever applies, have been authorized and empowered to consider and review any and all aspects of platting, construction and landscaping which may, in the reasonable opinion of such party, affect the living enjoyment of one or more lot owners or the general value of lots in the Subdivision. In considering the harmony of external design between existing structures and a proposed building being erected, placed or altered, the Developer or the Committee (if formed), whichever applies, shall consider only the general appearance of the proposed building as that can be determined from front, rear and side elevations on submitted plans.

(b) Developer, or the Committee (if formed) acting pursuant to a majority vote of its members,
whichever applies, shall have the right, power and authority to enforce the covenants, conditions,
restrictions and all other terms contained in this Declaration relating to the matters within its purview as set forth herein. If the Developer fails or refuses to enforce this Declaration as stated above, then the Association (if formed) shall have the right, power and authority to enforce this Declaration.

Section 5.4 Procedure for Approval.

(a) Each of the following documents and all modifications thereof must be submitted to the
Developer or the Committee (if formed), whichever applies, and such party's approval must be obtained, prior to the document's submission to the City or implementation:

(i) preliminary replat;
(ii) final replat;
(iii) engineering plans and specifications;
(iv) landscaping, fencing and general development plans; and
(v) architectural, building and construction plans for each residence, showing the
nature, kind, shape, height, materials and location of all landscaping and improvements on
each lot, and specifying any requested variance from the setback lines, garage location or
other requirements set forth in this Declaration, and, if requested by Developer or the
Committee (if formed), samples of proposed construction materials.

(b) All documents must be submitted in duplicate and must be sent to Developer or the
Committee (if formed) by hand delivery or certified mail; provided, however, that Developer shall not be obligated to submit or obtain approval of such documents as long as the Developer owns any lot(s) in the Subdivision. At such time as the submitted documents meet the approval of Developer or the Committee (if formed), one complete set of the submitted documents will be retained by such party and the other complete set shall be marked "Approved", signed by such party and returned to Builder or its respective designated representative. If disapproved by such party, one set of documents shall be returned marked "Disapproved" and shall be accompanied by a statement of the reasons for disapproval, which statement shall be signed by such party. Such party's approval or disapproval shall be in writing. In no event shall such party give oral approval of any documents. Notwithstanding the foregoing, if such party fails to respond to any submitted documents within ninety (90) days after the date of submission, the matters submitted shall be deemed to be approved.

Section 5.5 Standards. Developer or the Committee (if formed), whichever applies, shall use its best efforts to promote and ensure a high level of taste, design, quality, harmony and conformity throughout the Subdivision consistent with the standards set forth in this Declaration, provided that such party shall have sole discretion with respect to taste, design and all standards specified herein. One objective of such party is to conform generally with community standards and prevent unusual, radical, curious, odd, bizarre, peculiar or irregular structures from being built or maintained in the Subdivision. Such party shall also have the authority, among other things, to require as a minimum, a six (6) to twelve (12) foot roof pitch or slope on the main structure of the residence, subject to such party's ability to permit slight variances for garage and porch roof pitch or slope, to require that the exterior surfaces of the chimney chases be covered with brick, masonry or wood, to prohibit the use of lightweight composition roof material, to require that the colors of roofing materials be earth tones, to require the use of certain types of divided light windows (such as bronzed, white or black), to prohibit or regulate the use of solar or heating
panels, to regulate the construction and maintenance of awnings and generally to require that any plans meet the standards of the existing improvements on neighboring lots. Such party may from time to time publish and promulgate bulletins regarding architectural standards, which shall be fair, reasonable and uniformly applied and shall carry forward the spirit and intention of this Declaration.

Section 5.6 Termination. The Committee shall cease to exist on the date on which, with the prior written approval of Developer (if the Committee was created and sanctioned by the Developer and the Developer has not relinquished control or its right to give such approval) or the Board (if the Association has been formed and is still in existence as of such date) or the lot owners representing a majority of the votes of the lot owners (if the Association has not been created or is no longer in existence as of such date and the Developer has relinquished control or its right to give such approval), all the members of the Committee file a document declaring the termination of the Committee. If there is no Committee in authority, then no approval by the Committee shall be required under this Declaration, and variations from the standards set forth in this Declaration shall then be made in accordance with the general development standards as reflected in the approved plans, construction materials, landscaping and other matters (i) by
Developer, and (ii) by the Association (if formed) if Developer fails to take action relating thereto or after the Developer has relinquished control hereunder.

Section 5.7 Liability of Developer and the Committee.

(a) Developer and the members of the Committee shall have no liability for decisions made by
them so long as such decisions are made in good faith and are not discriminatory, arbitrary or capricious. Any errors in or omissions from the documents submitted to the Developer or Committee (if formed) shall be the responsibility of the entity or person submitting the documents, and Developer or Committee (if formed) shall have no obligation to check for errors in or omissions from any such documents, or to check for such documents' compliance with the general provisions of this Declaration, City codes and regulations, FHA or VA regulations, state statutes or the common law, whether the same relate to lot lines, building lines, easements or any other issue.

(b) Declarant and Developer shall have no responsibility or liability for (i) the creation,
selection, management or operation of the Committee, (ii) any actions taken or omitted to be taken by or on behalf of the Committee as a result of, in connection with, under, or pursuant to this Declaration or the Subdivision, or (iii) any liabilities, obligations, debts, actions, causes of action, claims, debts, suits or damages incurred by or on behalf of, or arising in connection with the Committee, the Subdivision or the duties and obligations of the Committee pursuant to this Declaration.

ARTICLE VI
SPECIAL FENCING AND LANDSCAPING PROVISIONS

Section 6.1 Fences, Walls, Sprinkler Systems and Other Improvements in the Restricted Area:
Developer and/or the Association, whichever applies, shall have the right, but not the obligation, to erect, install, maintain, repair and/or replace fences, walls, subdivision monuments, signs, improvements and/or sprinkler Systems within those portions (the "Restricted Area") of any lot which are located between the property lines of such lot and the setback or sight lines of such lot as established by the Plat(s), this Declaration or any governmental entity. If any fence, wall, subdivision monument, sign, improvement or sprinkler system is erected or installed on any lot(s), such fence, wall, subdivision monument, sign, improvement or sprinkler system shall be the property of the owner of the lot on which such fence, wall, subdivision monument, sign, improvement or sprinkler system is erected or installed, subject to the easements and rights of Developer as set forth below. No fence, wall or sprinkler system shall be erected or, installed in the Restricted Area by the owner of the affected lot without the prior written consent of
Developer, provided that any fence, wall or sprinkler system installed by the Developer in the Restricted Area may be maintained, repaired and/or replaced by the owner of the affected lot.

Section 6.2 Landscaping. Developer shall have the right but not the obligation to grade, plant and/or landscape and maintain, repair, replace and/or change such grading, planting and landscaping on any portion of the Restricted Area of any lot provided that such grading, planting and landscaping conforms with the landscaping plan approved by the Developer or Committee (if formed) as set forth above. In the event Developer does not landscape the Restricted Area, the owner of the affected lot may plant grass and, with the prior written consent of Developer, may landscape, install a sprinkler system and plant trees and shrubs in the Restricted Area; provided, however, in no event shall an owner erect or maintain any structure, paving or improvement other than landscaping and a sprinkler system in the Restricted Area.

Section 6.3 Restricted Area and Fence Encroachment Easements.

(a) Developer shall have the right and an easement to enter upon the Restricted Area for the
purpose of exercising the discretionary rights set forth in Sections 6.1 and 6.2 hereof.

(b) Each owner, as grantor, grants to each owner of each immediately adjacent lot, as
grantee, a non-exclusive reciprocal easement, license, privilege and right-of-way for the encroachment of any common fence upon such grantor's lot and for the right to attach any adjacent lot boundary fences to any common fence; provided, however, that no such encroachment shall extend more than two (2) feet into such grantor's lot and no such attachment shall irreparably and visibly damage the common fence. Without limiting the foregoing, the grantee shall have the easement, license, privilege and right-of-way for free, continuous and uninterrupted use of ingress and egress over and across the encroachment area which is located between the grantor's property line and the common fence, provided that the grantee agrees (i) not to construct or permit to exist within or on the encroachment area any building, structure or
other obstruction, (ii) to immediately repair any portion or condition of the encroachment area which is not in good condition or which is in need of repair, and (iii) to mow, water, weed and otherwise maintain and repair, at its sole cost and expense, the encroachment area in good condition and in accordance and compliance with all laws, rules, regulations, restrictions and covenants affecting the encroachment area and in accordance and consistent with the standards maintained in the Subdivision. In the event that. grantee fails or refuses to reasonably maintain and repair the encroachment area as generally described above, then the grantor may, if such condition continues after expiration of ten (10) days after written notice of such failure to the grantee, perform the maintenance and other duties described herein in which event the grantee shall immediately reimburse grantor all costs and expenses associated with maintaining
or performing such duties as generally described above.

(c) Each grantee hereby grants to each grantor as such terms are used in Paragraph (b)
above, a non-exclusive reciprocal easement, license, privilege and right-of-way to utilize and travel across such portions of the grantee's property as may be necessary or appropriate to provide access and ingress and egress to, and to maintain, repair, reconstruct and replace, their common fence. The grantor and grantee hereby agree to contribute equally to the maintenance, repair, reconstruction and replacement of any common fence, and if either grantor or grantee refuse to contribute or to participate in such maintenance, repair, reconstruction or replacement, then the other party may perform such duties and take such actions as it deems appropriate, and the non-performing parties shall reimburse the performing party for one-half (1/2) of all costs and expenses associated therewith. Without limiting the foregoing, in the event that the common fence needs to be replaced or substantially repaired 'which involves substantial renovation or reconstruction of the common fence, either party reserves the right, subject to all applicable laws, rules, regulations, restrictions and covenants, to relocate the common fence to the common property line between the grantor’s and grantee's properties in which event the encroachment
easement described in Paragraph (b) above shall immediately terminate upon completion of such
renovation, reconstruction and relocation of the common fence to the common property line.

(d) The easements, licenses, privileges and rights-of-way described in this Section 6.3 shall
constitute covenants running with each of the affected adjacent lots pursuant to applicable law for the benefit of each of the affected adjacent lots and the owners of such affected adjacent lots and their respective successors and assigns, and shall burden each of such affected adjacent lots, the owners of such affected adjacent lots and their successors and assigns.

Section 6.4 Maintenance of Restricted Area by Individual Lot Owner. in the event the Developer does not voluntarily maintain or repair any fences, walls, subdivision monuments, signs, sprinkler systems, grading, planting, landscaping or other improvements erected, installed or situated within the Restricted Area, then the owner of the affected lot shall, at its expense, perform such maintenance and repair work as is necessary to maintain such fences, walls, subdivision monuments, signs, sprinkler systems, grading, planting, landscaping and other improvements in a good and neat condition and appearance; provided, however, that the lot owner shall give Developer and the Association (if formed) ten (10) business days' written notice before performing any maintenance other than mowing, edging and trimming. So long as the Restricted Area and any fences, walls, subdivision monuments, signs, sprinkler systems, grading, planting, landscaping and other improvements thereon are reasonably maintained and repaired by Developer, the owner of such affected lot shall not perform any maintenance or repair work within such Restricted Area without the prior written consent of Developer and the Association (if formed). In no event shall the owner of any lot perform any maintenance or repair work on any sprinkler system within the Restricted Area without the prior written consent of Developer and the Association (if formed) unless such sprinkler system is owned by the owner and services only the owner’s lot.

Section 6.5 Termination. Upon notice from Developer, recorded in the public records of the County, Developer may terminate any or all of its rights, easements and authority pursuant to this Article VI.

Section 6.6 Association's and Lot Owners' Rights. Notwithstanding any contrary provision herein, the Association (if the Association has been formed) and the lot owners (if the Association has not been formed or is no longer in existence) shall have the right, but not the obligation, to exercise, at the Association's or lot owners' sole expense, any of Developer' rights, easements and authority pursuant to this Article VI, but only to the extent that the Developer has relinquished its rights herein or elects not to exercise such rights, easements and authority. Developer' termination of its rights pursuant to Section 6.5 shall have no effect on the Association's or lot owners' rights pursuant to this Section 6.6.

ARTICLE VII
MAINTENANCE

Section 7.1 Property and Lot Maintenance. Prior to completion of the development of the entire Subdivision and construction of a residence on each lot, all vacant lots and undeveloped portions of the Subdivision shall be kept mowed and free of trash and construction debris by the owner thereof. After the Lot Approval Date with respect to a particular lot, the owner and occupant of each lot shall cultivate an attractive ground cover or grass on all areas visible from the street, shall maintain all areas in a sanitary and attractive manner and shall edge the street curbs that run along the property line and the sidewalks and driveway located on the lot. Grass, weeds and vegetation on each lot must be kept mowed at regular intervals so as to maintain the property in a neat and attractive manner. No vegetables shall be grown in any yard that faces a street unless completely screened from public view by fences which comply with the provisions of this Declaration. No owner shall permit weeds or grass to grow to a height of greater than six (6) inches upon its lot. Upon failure of the owner of any lot to maintain such lot (whether or not
developed), Developer may, at its option, have the grass, weeds and vegetation cut as often as
necessary in its judgment, and the owner of such lot shall be obligated, when presented with an itemized statement, to reimburse Developer for the cost of such work. In the event Developer shall fail to exercise its right granted under the preceding sentence within ten (10) days following written notice to Developer from the Association (if formed) or the City stating the Association's or City's intent to exercise such right, the Association or City, whichever applies, shall have the right, in lieu of Developer, to have the grass, weeds and vegetation cut as provided above, and upon exercise of such right, the owner of such undeveloped property or the owner of the lot in question shall be obligated, when presented with an itemized statement, to reimburse the Association or City, whichever applies, for the cost of such work. These provisions shall be construed to create a lien in favor of the performing party against such property for the cost of such work or the reimbursement sought for such work performed on such property. In the event that the Association has not been formed or is no longer in existence, then the rights of the Association described herein may be exercised by the lot owners as set forth in Section 11.7(b) herein.

Section 7.2 Maintenance of Improvements. Subject to the provisions of this Article VII, each owner shall maintain the exterior of all buildings, fences, walls and other improvements on his lot in good condition and repair, shall replace worn and rotten parts, shall regularly repaint all painted surfaces and shall not permit the roofs, rain gutters, downspouts, exterior walls, windows, doors, walks, driveways, parking areas or other exterior portions of the improvements to deteriorate. Upon failure of the owner of any lot to maintain the exterior of all buildings, fences, walls and other improvements on his lot, Developer may, at its option, perform such maintenance as often as necessary in its judgment, and the owner of such lot shall be obligated, when presented with an itemized statement, to reimburse Developer for the cost of such maintenance work. In the event Developer shall fail to exercise their right granted under the preceding sentence within ten (10) days following written notice from the Association (if formed) to Developer of the Association's intent to exercise such right, the Association shall have the right, in lieu of Developer, to perform such maintenance as provided above, and upon exercise of such right, the owner of such lot in question shall be obligated, when presented with an itemized statement, to reimburse the
Association for the cost of such maintenance work. These provisions shall be construed to create a lien in favor of the performing party against such lot for the cost of such work or the reimbursement sought for such work performed on such lot. In the event that the Association has not been formed or is no longer in existence, then the rights of the Association described herein may be exercised by the lot owners as set forth in Section 11.7(b) herein.

ARTICLE VIII
MEMBERSHIP AND VOTING RIGHTS IN THE
ASSOCIATION AND VOTING RIGHTS OF THE LOT OWNERS

Section 8.1 Membership in the Association. In the event the Association is formed and created, then, upon formation and creation of the Association, every owner of a lot shall be a member of the Association, which shall function as a homeowners' association for the owners of lots in the Subdivision. Membership shall be appurtenant to, and shall not be separated from, ownership of a lot. Without limiting the foregoing, the owner(s) (including the Developer) of land which has not been final platted and fully developed shall have membership in the Association as if the land had been final platted and fully developed into the lots reflected on the Preliminary Flat, and shall be entitled to vote for each such proposed lot in accordance with the provisions of.

Section 8.2 Voting Rights

(a) In the event the Association is formed and created, the Association shall have two (2)
classes of voting membership:
(i) Class A. Class A members shall be all owners (other than Class B members) and shall
be entitled to one (1) vote for each lot. When more than one (1) person holds an interest in any lot, all such persons shall be members, but the vote for such lot shall be exercised as they among themselves determine, and in no event shall more than one (1) vote be cast with respect to any lot.

(ii) Class B. Class B member(s) shall be the Developer, who shall be entitled to three (3)
votes for each lot owned. The Class B membership shall cease and be converted to Class A membership at the earlier to occur of (A) the date when the total votes outstanding in the Class A membership equal the total votes outstanding in the Class B membership, or (B) ten (10) years from consummation of the first sale of a lot with a residence thereon in the Subdivision.

(b) In the event the Association is not created or is no longer in existence as of a particular
date, then, on all matters submitted to or which must be approved by the lot owners, (i) Developer shall be entitled to three (3) votes for each lot or proposed lot owned by the Developer, and (ii) the other owner(s) of each lot shall be entitled to one (1) vote for each lot. In this regard, any reference in this Declaration to approval or action by the lot owners shall require the affirmative vote of such lot owners taking into account the weighted voting set forth above.

Section 8.3 Board of Directors

(a) If the Association is created, the members of the Association shall elect the board of
directors (the "Board'? of the Association subject to the provisions of subparagraph (b) hereof, and the Board shall, by majority rule, conduct all of the business of the Association, except when membership votes are required pursuant to this Declaration or pursuant to the Articles of Incorporation or Bylaws of the Association. Subject to the provisions of Section 5.1, the Board shall appoint the Committee in the manner set forth in Section 5.1 hereof.

(b) Notwithstanding anything contained in the preceding subparagraph (a) or elsewhere in this
Declaration to the contrary, as long as the Developer owns any lot(s) in the Subdivision, the Developer shall be entitled to appoint at least one (1) member of the Board, or such larger number of members as its lot ownership and weighted voting may warrant.

Section 8.4 Bylaws. The Association (if created) may make whatever rules and bylaws it deems desirable to govern the Association and its members; provided, however, any conflict between such bylaws and the provisions hereof shall be controlled by the provisions hereof.

Section 8.5 Inspection Rights. Each owner shall have the right to inspect and examine the books, records and accounts of the Association at reasonable times upon reasonable written notice, provided that such inspection and examination shall be at such owner’s sole cost and expense.

ARTICLE IX
ASSESSMENTS

Section 9.1 Creation of Lien and Personal Obligation of Assessments. No mandatory assessments shall be due prior to the Lot Approval Date. From and after the Lot Approval Date, Developer, for each fully developed lot in the Subdivision, hereby covenants, and each owner (other than the Developer), by acceptance of a deed to a lot, is deemed to covenant and agree to pay to a maintenance account or fund established by Developer or the Association (if the Association has been formed and is in existence as of such date) (a) annual assessments, and (b) special assessments, such assessments to be established and collected as hereinafter provided. The annual and special assessments, together with interest, costs of collection and reasonable attorneys' fees, shall be a charge on each lot and, if unpaid as described in Section 9.5 hereof, shall constitute a continuing lien upon the lot against which each such unpaid assessment is made. Each such assessment, together with interest, costs of collection and reasonable
attorney's fees, shall be the personal obligation of the owner of such lot at the time when the assessment came due. The personal obligation for delinquent assessments shall not pass to such owner’s successors in title unless expressly assumed by them, provided that the lien for such assessments shall continue and may be enforced against the lot.

Section 9.2 Annual Assessment.

(a) From and after the Lot Approval Date, each lot shall hereby be subjected to an annual
assessment for the purpose of creating a fund to be designated and known as the "maintenance fund". The annual assessment will be paid by the owner of each lot to an account or fund established by the Developer or the Association (if the Association has been formed and is in existence as of such date) annually in advance or In such intervals and methods as may be established by Developer or the Board from time to time. The assessment per lot for the year in which the Lot Approval Date occurs shall be established by the (i) Developer if (A) the Association has not been created or is no longer in existence as of such date, or (B) the Association (if created by the Developer), or (ii) the lot owners representing at least seventy-five percent (75%) of the lots (taking into account the weighted voting described herein) if (A) the lot owners create the Association, or (B) the Developer no longer owns any property in the Subdivision and the Association has not been created or is no longer in existence as of such date. Without limiting the foregoing, the annual assessments shall be sufficient to fund the purposes, uses and benefits described in Section 9.3 hereof.

(b) The assessment for a particular lot for the calendar year in which the Lot Approval Date
occurs shall be prorated for such calendar year for the period commencing on the Lot Approval Date and ending on December 31 of such calendar year. The rate at which each lot will be assessed for subsequent years will be determined annually at least thirty (30) days in advance of each annual assessment by the party creating the assessment as set forth above, provided that, without a vote of the membership as described in the next sentence, the annual assessment, a created by the Association, may not be increased by the Association in any year by an amount in excess of ten percent (10%) above the previous year's annual assessment. The annual assessment may be increased by the Association to an amount in excess of ten percent (10%) of the annual assessment for the previous year by the assent of two-thirds (2/3rds) of the votes of each class of members who are voting in person or by proxy, at a meeting duly called for such purpose at which a quorum is present. The notice and quorum requirements for such meeting are the same as those set forth in Section 9.4 for special assessments for capital improvements. The assessments for each lot shall be uniform. Developer, or the Association, shall upon demand and upon payment of a reasonable fee, furnish a certificate signed by an officer of Developer or the Association setting forth whether the assessments on a specified lot have been paid.

Section 9.3 Capital Reserve Fund. Initial Reserve Contribution. Each initial purchaser of a
residential dwelling in the Subdivision shall covenant and agree to pay a capital reserve contribution of $200.00 upon the closing of the first sale of a dwelling on each Lot. This reserve contribution shall be used exclusively for the establishment of a fund for the major repair and/or replacement of capital assets located in the Common Areas of the Subdivision which may include, but not be limited to private streets, perimeter subdivision walls, controlled access gates and electronic gate access systems, swimming pools, pool furnishings, cabana buildings, irrigation system controllers, lighting, subdivision signs, and the like. All capital reserve contributions shall be deposited into an interest bearing account and shall be kept segregated from the maintenance assessments referred to in Section 9.2 above. Each capital reserve contribution, together with interest, costs of collection and reasonable attorney's fees, shall be the personal obligation of the owner of the lot at the time when the assessment came due. There shall be no capital reserve contribution levied against the Developer for any lots owned by Developer.

Section 9.4 Purposes, Developer or the Association (if formed), whichever applies, shall use the proceeds of the maintenance fund for the use and benefit of the Subdivision. Such uses and benefits may include, by way of example and not limitation, any and all of the following:

(a) maintaining, operating, managing, repairing, or improving any Recreation Center (if
constructed) and the landscaping, lighting, sprinkler systems, walls, fences, subdivision monuments, signs, perimeter access gates, and streets and other features located in any Restricted Area and other common areas owned by Developer or the Association, whichever applies, as designated on Exhibit A or the Plat(s). The Recreation Center, if any, and all of the items and features referenced in this subparagraph (a) are hereinafter collectively referred to as the "Common Area");

(b) mowing the grass, maintaining the gravel and maintaining signs in or adjoining any rights-
of-way or easements in the event the City or County fails to maintain such areas;

(c) paying legal charges and expenses incurred in connection with the enforcement of all
recorded charges and assessments, covenants, restrictions and conditions affecting the land to which the maintenance fund applies;

(d) paying reasonable and necessary expenses in connection with the collection and
administration of the assessments; and

(e) paying insurance premiums for liability and fidelity coverage for Developer, Committee
and/or the Association and/or their officers and directors, employing policemen and watchmen, caring for vacant lots and doing any other things which are necessary or desirable in the opinion of Developer or the Board, whichever applies, to keep the lots neat, secure and in good order, or which are considered of general benefit to the owners or occupants of the Subdivision, it being understood that the judgment of Developer or the Board, whichever applies, in the expenditure of said funds shall be final and conclusive so long as such judgment is exercised in good faith.

(f) making additional deposits to the capital reserve fund for the long term repair and
replacement of capital items (such as swimming pools, entry gates, and streets owned and maintained for the benefit of the lot owners.

Section 9.5 Special Assessments for Capital Improvements.

(a) In addition to the annual assessments authorized above, the Developer (if the Association
has not been formed or is no longer in existence as of such date) or the Association (if the Association has been formed and is in existence as of such date) may levy, in any calendar year after the Lot Approval Date, a special assessment, applicable to that year only, for the purpose of defraying, in whole or in part, the cost of any indemnification set forth in the Articles of Incorporation or Bylaws for the Association (if formed) and any construction, reconstruction, repair or replacement of a capital improvement on or to the Recreation Center (if any), Restricted Area or Common Area (if any) in that same or immediately subsequent calendar year, including walls, fences, lighting, gates, streets, subdivision monuments, signs and sprinkler systems.

(b) Any special assessment made by the Association pursuant to this Section 9.4 must have
the assent of two-thirds (u3rds) of the votes of each class of members who are voting in person or by proxy at a meeting duly called for this purpose not less than ten (10) days nor more than fifty (50) days in advance of such meeting. At the first such meeting called by the Association, the presence of members (in person or by proxy) entitled to cast sixty percent (60%) of all the 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, provided that the required quorum at the subsequent meeting shall be one-half (1/2) of the minimum required quorum at the preceding meeting. No rescheduled meeting shall be held more than fifty (50) days following the preceding scheduled meeting.

Section 9.6 Effect of Nonpayment of Assessments; Remedies of Developer or the Association.
Any assessment not paid within thirty (30) days after the due date shall bear interest from the due date until paid in full at the rate of fifteen percent (15%) per annum. Developer (if the Association has not been created or is no longer in existence as of such date) or the Association (if the Association has been formed and is in existence as of such date) may bring an action at law against the lot owner personally obligated to pay the same, may foreclose the lien against the lot and/or may pursue any other legal or equitable remedy available to it. No owner may waive or otherwise avoid liability for the assessment provided for herein by non-use of the Recreation Center (if any) or any Common Area or by abandonment of its lot.

Section 9.7 Subordinated Lien to Secure Payment. The lien on any particular lot created as the result of the non-payment of any assessment provided for herein shall only be subordinate to the liens of any valid first lien mortgage or deed of trust secured by such lot. Sale or transfer of any lot shall not impair the enforceability or priority of the assessment lien against such lot.

Section 9.8 Duration. The assessments created for herein will remain effective for the full term (and extended term, if applicable) of the Declaration.

Section 9.9 Declarant and Developer Not Liable for Association Deficits. Notwithstanding anything contained in this Declaration to the contrary, Declarant and Developer shall not be liable for any liabilities, obligations, damages, causes, causes of action, claims, debts, suits or other matters incurred by or on behalf of the Association or lot owners or for any deficits or shortfalls incurred or realized by or on behalf of the Association or lot owners in connection with the Subdivision or this Declaration. Declarant and Developers' sole liability and obligation hereunder shall be limited to the assessments assessed against any lots owned by the Declarant or Developer, whichever applies.

PROPERTY RIGHTS IN COMMON AREA

Section 10.1 Property Rights in Common Area. The Developer, Association (if formed) and their successors, assigns, contractors, agents and employees shall have the right and easement to enter upon the Common Area (if any) for the purpose of exercising the rights set forth in this Declaration.

Section 10.2 Common Area Easements. Every owner shall have a non-exclusive right and easement of enjoyment in and to any Common Area, which right shall be appurtenant to and shall pass with the title to every lot, subject to the following provisions:

(a) the right of the Developer or Association (if formed) to charge reasonable admissions and
other fees for the use of any recreational facility (including, without limitation, the Recreation Center, if any) situated upon any Common Area;

(b) the right of the Developer or Association (if formed) to suspend the voting rights and right
to the use of the recreational facilities by an owner or occupant of a lot for any period during which any assessment against such owner’s lot remains unpaid, and for a period not to exceed sixty (60) days for any infraction of this Declaration or the published rules and regulations of the Developer or Association (if formed); and

(c) the right of the Developer or Association (if formed) to dedicate or transfer all or any part of
any Common Area to any public agency, authority or utility company for such purposes and subject to such conditions as may be agreed to by the Developer or Board (if the Association is formed); provided, however, that no such dedication or transfer shall be effective unless an instrument has been recorded and has been signed by two-thirds (2/3rds) of (i) the votes allocated to the lot owners as provided herein (if the Association is not formed or is no longer in existence as of such date), taking into account the weighted voting described herein, and (ii) each class of members evidencing their agreement to such dedication or transfer (if the Association has been formed and is in existence as of such date). Section 10.3 Delegation of Rights. Any owner may delegate, in accordance with this Declaration or the bylaws of the Association, his right of enjoyment to the Common Area (if any) and facilities to the members of such owner's family or to persons residing on the lot under a lease or contract to purchase.

Section 10.4 Conveyance of Common Area to Association. Developer shall convey the Common Area (if any) to the Association (if formed), free and clear of any encumbrances other than as may be created by this Declaration or imposed by the City, County or other applicable governmental authority, (a) prior to the first VA loan guaranty or direct loan in the Subdivision if the Association is formed prior to such date, (b) if the Association is formed at a later date, then within a reasonable period of time after the Association is formed, or (c) if the improvements on the Common Area will be completed at a later date than the dates specified in subparagraphs (a) or (b) above, then within a reasonable period of time after the completion of such improvements, subject to any required FHA and/or VA approvals.

Section 10.5 Entry Houses and Gates. For so long as Class B membership exists, (and provided that it has not previously transferred its rights in this section to the Association, if formed), Developer reserves the legal title and control over any and all entry houses and gates which it may construct on or about the Subdivision, as well as the authority, in its sole discretion, to determine the hours, staffing and manner of operations. Nothing in this Declaration, or any other statement or communication by Declarant, the Developer, or the Association (if formed) shall constitute any representation or warranty by Declarant, the Developer, or the Association (if formed) concerning the hours, staffing or manner of operation of the entry houses and gates, nor concerning any security or safety protection which the entry houses or gates may offer.

Section 10.6 Dissolution of the Association. The Association may be dissolved by a written assent signed by the lot owners representing not less than two-thirds (2/3) of the votes of each class of members. In the event the Association is dissolved, the Common Area (if any) shall be conveyed to either (a) another non-profit Texas corporation, association, trust or other organization devoted to purposes similar to those of the Association, or (b) an appropriate governmental agency to be used for purposes similar to those for which the Association was created.

ARTICLE XI
GENERAL PROVISIONS

Section 11.1 Utility Easements. Easements for the installation and maintenance of utilities and drainage facilities are reserved and shown on the Flat, including, without limitation, an easement over the rear five (5) feet of each lot. Easements are or will be also reserved on the Flat for the installation, operation, maintenance and ownership of utility service lines from the lot lines to the residences. Developer reserves the right to make changes in and additions to the above easements for the purpose of most efficiently and economically developing the land and installing improvements in the Subdivision. The owner of a lot shall mow weeds and grass and shall keep and maintain in a neat and clean condition any easement which may traverse a portion of the owner’s lot.

Section 11.2 Recorded Plat. All dedications, limitations, restrictions and reservations shown on the Plat(s) are and shall be incorporated herein and shall be construed as being adopted in each contract, deed or conveyance executed or to be executed by Developer or any Builder or other owner conveying lots in the Subdivision whether specifically referred to therein or not.

Section 11.3 Mortgages.. It is expressly provided that the breach of any of the conditions in this
Declaration shall not defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value, as to the same premises or any part thereof encumbered by such mortgage or deed of trust, but said conditions shall be binding thereto as to lots acquired by foreclosure, trustee's sale or otherwise, but rm. The foregoing covenants and restrictions shall run with and bind all land within the Subdivision and shall remain in full force and effect for a term of thirty (30) years after this Declaration is recorded, and shall be automatically extended for successive periods of ten (10) years unless amended as provided herein.

Section 11.5 Severability. If any condition, covenant or restriction herein contained shall be invalid, which invalidity shall not be presumed until the same is determined by the unappealable judgment or order of a court of competent jurisdiction, such invalidity shall in no way affect any other condition, covenant or restriction, each of which shall remain in full force and effect.

Section 11.6 Binding Effect. Each of the conditions, covenants, restrictions and agreements herein contained is made for the mutual benefit of, and is binding upon, each and every person acquiring any part of the land within the Subdivision, it being understood that, except as otherwise expressly provided herein with respect to Declarant, Developer and the Committee (if formed), such conditions, covenants, restrictions and agreements are not for the benefit of the owner of any land except land in the Subdivision. This instrument, when executed, shall be filed of record in the deed records of the County so that each and every owner or purchaser of any portion of the land within the Subdivision is on notice of the easements, conditions, covenants, restrictions and agreements herein contained.

Section 11.7 Enforcement

(a) Except as limited or restricted hereby, Declarant, Developer, the Committee (if formed),
the Association (if formed) and the owners of each lot and any portion of the land within the Subdivision shall have the easement and right to have each and all of the foregoing restrictions, conditions and covenants herein faithfully carried out and performed with reference to each and every portion of land within the Subdivision, together with the right to bring any suit or undertake any legal process that may be proper to enforce the performance thereof, it being the intention hereby to attach to each portion of land within the Subdivision, without reference to when it was sold, the right and easement to have such restrictions, conditions and covenants strictly complied with, such right to exist with the owner of each portion of the land within the Subdivision and to apply to all lots in the Subdivision. Failure by any owner, Declarant, Developer, Committee (if formed) or Association (if formed) to enforce any covenant or restriction herein contained or to take any action herein permitted shall in no event be deemed a waiver of the right to do so thereafter. The rights of enforcement granted Declarant, Developer, Committee (if formed) and Association (if formed) under this Declaration are personal rights and in no other event shall
the owner of any land except land in the Subdivision have any right of enforcement with respect to this Declaration. In addition, the restrictions, conditions and covenants set forth herein may be enforced by the Building Inspector or any official performing similar functions for the City, and such Building Inspector is hereby authorized to refuse or revoke all permits for the construction of any improvements on any lot if the proposed improvements on such lot do not strictly comply with such restrictions, conditions and covenants.

(b) Notwithstanding anything contained herein to the contrary, all consents, approvals and
actions reserved to or permitted to be taken or made by the Association may be taken, made or provided by the lot owners only if (i) the Association has not been created or is no longer in existence as of such date, or (ii) if the Association has been created and is in existence as of such date and the Association elects not to exercise such rights, easements and authority. In such event, the lot owners may take such action by the requisite vote of such lot owners as provided herein.

Section 11.8 Other Authorities. If other authorities, such as the City or County, impose more
demanding, extensive or restrictive requirements than those set forth herein, the requirements of such authorities shall govern. Other authorities' imposition of lesser requirements than those set forth herein shall not supersede or diminish the requirements herein.

Section 11.9 Addresses. Any notices or correspondence to an owner of a lot shall be addressed to the street address of the lot. Any notices or correspondence to the Developer or Committee (if formed) shall initially be addressed to the Developer or Committee, whichever applies, at the addresses of the Developer, or to such other addresses as are specified by the Developer or Committee, whichever applies, pursuant to an instrument recorded in the deed records of the County.

[THE BALANCE OF THIS PAGE IS INTENTIONALLY BLANK]

EXECUTED by the Declarant on the date shown in the acknowledgements below, to be effective
as of October , 1998•

STATE OF TEXAS
COUNTY OF BEXAR
DECLARANT:
PULTE HOMES OF TEXAS, L.P.

Name: Bart Swider
Title: Controller
BEFORE ME, the undersigned authority, a Notary Public, on this day personally appeared Bart
Swider, Controller of the San Antonio Division of Pulte Homes of Texas, L.P., known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purpose and consideration therein expressed, as the act and deed of Pulte Homes of Texas, L.P., in the capacity therein stated.

GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 20 day of October, 1998.

[SEAL]
My Commission Expires
DEBORAH J. YATES
My Comm. Exp. 11/01/01

WHEN RECORDED, RETURN TO:
Encino Rio Homeowners Association, Inc.
1017 Central Parkway North, Suite 112
San Antonio, TX 78232-5009

EXHIBIT A
TO
DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
FOR ENCINO RIG, UNIT ONE
AN SUBDIVISION TO THE CITY OF SAN ANTONIO
BEXAR COUNTY, TEXAS
LOT DESCRIPTION OF SUBDIVISION
Lot 2, Block 7
Lot 54 thru 55, Block 7
Lots 1 thru 56, Block 8
Lots 1 thru 8, Block 9
Lots 23 thru24, Block 9
Lots 1 thru 16, Block 10

EXECUTED on the date first set forth above.

STATE OF TEXAS
COUNTY OF BEXAR
DECLARANT:
PULTE HOMES OF TEXAS, L.P.

By: Bart Swider, Controller

BEFORE ME, the undersigned authority, on this day personally appeared BART SWIDER,
Controller of PULTE HOMES OF TEXAS, L.P., a Texas limited partnership, on behalf of said limited partnership, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and considerations therein expressed, and in the capacity therein stated.

GIVEN UNDER MY HAND AND SEAL OF OFFICE, on this the 1st day of
December, 1999.

JERRI H DEARMAN
NOTORY PUBLIC
Comm.Exp.06-10-2002

After recording, return to:
ENCINO RIO HOMEOWNERS ASSOCIATION, INC.
1017 Central Parkway North, Suite 112
San Antonio, TX 78232-5009
State of Texas

Book Volm Page
D 08227 00565
F:\subdivision\encino rio\annex-2

ENCINO RIO HOMEOWNERS ASSOCIATION, INC.
ARCHITECTURAL CONTROL COMMITTEE

Architectural Standards Bulletin No. 2

CRITERIA FOR BASKETBALL GOALS

WHEREAS, Article I states that the Restrictive Covenants for the Encino Rio
Subdivision were established among other reasons "...for the purpose of promoting the
development of the Subdivision in a first-class manner..."; and

WHEREAS, Article V, Section 5.5 establishes that the Architectural Control
Committee "...shall use ifs best efforts to promote and ensure a high level of taste, design, quality, harmony and conformity throughout the Subdivision..." and may from time to time publish and promulgate bulletins regarding architectural standards, which shall be fair, reasonable and uniformly applied..."; and

WHEREAS, the Architectural Control Committee desires to establish criteria for the
construction and placement of temporary basketball goals on the lots in the subdivision;
NOW THEREFORE, the following criteria are established for the construction and
placement of temporary basketball goals on the lots in the subdivision:

1. Any basketball equipment or installation is considered an "improvement" and must have ACC approval.
2. No permanent basketball poles may be installed in the front yard of any residence.
Permanent installation of basketball poles may be installed in the rear yard only.
3. Any portable basketball equipment must be of "commercial construction".
4. Basketball nets must be maintained in a neat and orderly fashion and be replaced when frayed or broken.
5. Basketball equipment may not be placed on the curb or in the street at any time.
6. Basketball equipment must be folded and moved out of view of the street if not in regular use. "Regular" use is described as in use at least once a week.
7. Additional criteria governing the design and placement of basketball goals may be established from time to time.
8. All use of temporary basketball installations shall be allowed from sun-up to
sundown only so as not to disturb the quiet enjoyment of another owner.

This action was taken on December 13, 1999.

Bart Swider, Chairman
Architectural Control Committee

ENCINO RIO HOMEOWNERS ASSOCIATION, INC.
ARCHITECTURAL CONTROL COMMITTEE

Architectural Standards Bulletin No. 1

CRITERIA FOR STORAGE BUILDINGS

WHEREAS, Article I states that the Restrictive Covenants for the Encino Rio
Subdivision were established among other reasons "...for the purpose of promoting the
development of the Subdivision in a first-class manner..."; and

WHEREAS, Article V, Section 5.5 establishes that the Architectural Control
Committee "...shall use its best efforts to promote and ensure a high level of taste, design,
quality, harmony and conformity throughout the Subdivision..." and "may from time to time
publish and promulgate bulletins regarding architectural standards, which shall be fair,
reasonable and uniformly applied..."; and

WHEREAS, the Architectural Control Committee desires to establish criteria for the
construction and placement of storage buildings within the subdivision:

NOW THEREFORE, the following criteria are established for the construction and
placement of storage buildings within the subdivision:

1. Any storage building or outbuilding must be placed only in areas not visible from
any street adjacent to the lot.
2. All exterior colors and materials shall match the existing residence.
3. The roofing material shall match the existing residence in both color and
composition. No metal storage buildings shall be allowed.
4. Any shed, outbuilding or storage building shall not exceed one story (9'6") in
height.
5. Any shed, outbuilding or storage building shall be placed a minimum of five feet
(5') from both the rear and side property lines in order to allow for the proper
maintenance of the shed, fence and vegetation.
6. The total floor area of any outbuilding other than a detached garage shall not
exceed 80 square feet.
7. If the topography of a specific lot is such that the requirements of 1 and 5 above
cannot be fulfilled, approval for the construction and placement of a storage
building may be contingent upon the erection or installation of approved screening
materials as established by the Architectural Control Committee.
Additional criteria governing the erection and placement of sheds, outbuildings or storage buildings may be established from time to time.

This action was taken on December 13, 1999.

Bart Swider, Chairman
Architectural Control Committee

Posted by mccstr on 11/30/2006

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