Chico Oaks Website

Chico Oaks, A Planned Unit Development, est. 1976

This document was recorded by Candace J. Grubbs in the Butte County Official Records on 10-18-95, document # 95-36952. However, the First Amendment to the CC&R's was recorded on 5-25-2000. This amendment replaced the old Section 8.1 and 8.2. These changes have been added to this document.

AMENDED DECLARATION OF COVENANTS, CONDITIONS
AND RESTRICTIONS OF CHICO OAKS HOMEOWNERS' ASSOCIATION, INCORPORATE

This Amended Declaration of Covenants, Conditions, and Restrictions is made on the date hereinafter set forth by CHICO OAKS HOMEOWNERS' ASSOCIATION, INCORPORATED, a California Non-Profit Mutual Benefit Corporation (hereinafter referred to as the "Association").

CONTENTS

RECITALS

ARTICLE I: 
DEFINITIONS
1.1   Additional Charges 
1.2   Architectural Committee 
1.3   Articles 
1.4   Association 
1.5   Board of Directors
1.6   By-Laws 
1.7   Common Area 
1.8   City 
1.9   County
1.10 Declaration
1.11 Development 
1.12 Exclusive Use Common Area 
1.13 Family 
1.14 Governing Documents
1.15 Improvement 
1.16 Landscape Committee 
1.17 Lot 
1.18 Maintenance
1.19 Member 
1.20 Member in Good Standing
1.21 Mortgage 
1.22 Mortgagee
1.23 Owner 
1.24 Repair 
1.25 Replacement
1.26 Residence
1.27 Resident
1.28 Rules

ARTICLE II:
PROPERTY RIGHTS AND THE RIGHTS OF ENJOYMENT 
2.1 Owners' Non-Exclusive Easements of Enjoyment 
2.2 Exclusive Use Common Area
2.3 Delegation of Use
2.4 Common Area
2.5 Common Area Construction
2.5 Mechanic's Liens
2.6 No Partition
2.8 Party Walls

ARTICLE III:  
EASEMENTS  
3.1 Easements in General
3.2 Easements of Encroachment
3.3 Utility Easements
3.4 Easements Granted by Association

ARTICLE IV
USE RESTRICTIONS
4.1   Residential Use
4.2   Rental of Residences
4.3   Restriction on Businesses 
4.4   Offensive Conduct, Nuisances
4.5   Hazards
4.6   Sports Apparatus 
4.7   Mailboxes and Exterior Newspaper Tubes 
4.8   Outside Drying and Laundering
4.9   Antennae 
4.10 Animals
4.11 Trash Disposal
4.12 Signs 
4.13 Vehicles and Parking 
4.14 Parking Enforcement
4.15 Carports
4.16 Outbuildings

ARTICLE V
HOMEOWNERS ASSOCIATION 
5.1   Management and Operation 
5.2   Membership 
5.3   Voting 
5.4   Board of Directors  
5.5   Association Rules 
5.6   Manager and Other Personnel  
5.7   Assessments  
5.8   Insurance  
5.9   Capital Improvements  
5.10 Dedication  
5.11 Acquisition of Property  
5.12 Access

ARTICLE VI
ASSESSMENTS AND LIENS
6.1   Covenant of Owner
6.2   Creation of Lien
6.3   Purpose of Annual Assessments
6.4   Annual Assessments
6.5   Special Assessments
6.6   Reimbursement Assessments 
6.7   Enforcement Assessments 
6.8   Failure to Fix Assessments 
6.9   Offsets 
6.10 Delinquent Assessments 
6.11 Power of Sale 
6.12 Certificate of Satisfaction 
6.13 Priority 
6.14 Association Funds 
6.15 Waiver of Exemptions 
6.16 Property Exempt From Assessments

ARTICLE VII
DAMAGE OR DESTRUCTION OF BUILDINGS; CONDEMNATION
7.1  
7.2   Rebuilding or Repair of Improvements on Lots  
7.3   Condemnation of Common Area  
7.4   Condemnation of Lots 

ARTICLE VIII
MAINTENANCE OF PROPERTY
8.1   Association Responsibility  amended version
8.2   Owner Responsibility amended version 
8.3   Owner Liability 

ARTICLE IX
ARCHITECTURAL AND LANDSCAPE CONTROL 
9.1   Establishment  
9.2   Duties  
9.3   Meetings 
9.4   Rules 
9.5   Submission of Plans and Specifications  
9.6   Application  
9.7   Grant of Approval  
9.8   Form of Approval  
9.9   Board Review  
9.10 Commencement  
9.11 Completion  
9.12 Inspection  
9.13 Preliminary Approval  
9.14 Non-Waiver 
9.15 Estoppel Certificate 
9.16 Liability  
9.17 Compliance With Governmental Requirements  

ARTICLE X
ENFORCEMENT 
10.1   Violations as Nuisance  
10.2   Violation of Law 
10.3   Owners' Responsibility 
10.4   Rights and Remedies of the Association  
10.5   Disciplinary Rules 
10.6   Emergency Situations  
10.7   Non-Waiver  
10.8   Notices  
10.9   Costs and Attorney's Fees 
10.10 Alternative Dispute Resolution  

ARTICLE Xl
AMENDMENT
11.1   Procedure 

ARTICLE Xll
GENERAL PROVISIONS 
12.1     
12.2   Severability  
12.3   Liberal Construction  
12.4   Number Gender 
12.5   Easements Reserved and Granted 
12.6   Power of Attorney 

1.1 Additional Charges. "Additional Charges" shall mean all costs, fees, charges, and expenditures, including without limitation, interest, late charges, attorneys' fees, recording and filing fees, and all other costs actually incurred by the Association in collecting and/or enforcing payment of assessments, fines, and/or penalties.

1.2 Architectural Committee. "Architectural Committee" shall mean the Committee created pursuant to Article IX of this Declaration and Article X of the By-Laws.

1.3 Articles. "Articles" shall mean the Articles of Incorporation of CHICO OAKS HOMEOWNERS' ASSOCIATION, INCORPORATED, as they may be amended from time to time, and as filed with the Office of the Secretary of State of California.

1.4 Association. "Association" shall mean CHICO OAKS HOMEOWNERS' ASSOCIATION, INCORPORATED, its successors and assigns.

1.5 Board of Directors. "Board of Directors" or "Board" shall mean the governing body of the CHICO OAKS HOMEOWNERS' ASSOCIATION, INCORPORATED

1.6 By-Laws. "By-Laws" shall mean the By-Laws of the CHICO OAKS HOMEOWNERS' ASSOCIATION, INCORPORATED as they shall be adopted by the Board of Directors and Members and any duly-adopted Amendments thereof.

1.7 Common Area. "Common Area" shall mean all real property owned by the Association for the common use and enjoyment of the Residents of the Development.

1.8 City. "City" shall mean the City of Chico, State of California 

1.10 Declaration. "Declaration" shall mean this Amended Declaration of Covenants, Conditions and Restrictions of CHICO OAKS HOMEOWNERS' ASSOCIATION, INCORPORATED, recorded in the Office of the County Recorder of Butte County, California, and any Amendments thereof.

1.11 Development. "Development" shall mean all the real property comprising the CHICO OAKS HOMEOWNERS' ASSOCIATION, INCORPORATED planned development hereinbefore described and such additions thereto as may hereafter be brought within the jurisdiction of the Association

1.12 Exclusive Use Common Area. "Exclusive Use Common Area" shall mean any portion of the Common Area the exclusive use of which is set aside, allocated, assigned and restricted to the Owners and Residents of a particular Lot. An exclusive easement to such Exclusive Use Common Area may be specifically granted in each individual Grant Deed conveying a Lot; provided, however, that failure of any such Deed to set forth such grant of easement shall not invalidate the exclusive easement herein granted.

1.13 Family. "Family" shall mean two or more persons who live together and maintain a common household in a Residence whether or not they are all related to each other by birth, marriage, or legal adoption.

1.14 Governing Documents. "Governing Documents" shall mean the Articles, By-Laws, Declaration and Rules, and the-policies and resolutions duly adopted by the Board and distributed to the Members.

1.15 Improvement. "Improvement" shall include, without limitation, the construction, installation, alteration, or remodeling of any buildings, walls, decks, fences, swimming pools, landscaping, landscape structures, skylights, solar heating equipment, spas, antennas, utility lines or any structure of any kind. In no event shall the term "Improvement" be interpreted to include projects which are restricted to the interior of any Residence and which do not involve the roof or any load bearing wall.

1.16 Landscape Committee. "Landscape Committee" shall mean the Committee created pursuant to Article IX of this Declaration and Article X of the By-Laws.

1.17 Lot "Lot" shall mean any plot of land shown upon any recorded subdivision map of the Development upon which a Residence has been constructed, but shall not include Common Area.

1.18 Maintenance. "Maintenance" shall mean the act of caring for property and keeping it in its existing state, preserving it from failure or deterioration, including painting, caulking, cleaning and minor, nonstructural upkeep.

1.19 Member. "Member" shall mean each person or entity who is a record Owner of a fee or undivided fee interest in any Lot within the Development, except any such person or entity who holds an interest in a Lot merely as security for the performance of an obligation.

1.21 Mortgage. "Mortgage" shall mean a Deed of Trust as well as a Mortgage in the conventional sense.

1.22 Mortgagee. "Mortgagee" shall mean a beneficiary under a Deed of Trust as well as under a Mortgage.

1.23 Owner. "Owner" shall mean the record Owner, whether one or more persons or entities, of the fee simple title to any Lot which is apart of the Development, including contract sellers, but excluding contract purchasers and excluding those having such interest merely as security for the performance of an obligation.

1.24 Repair. "Repair" shall mean the minor restoration of property that is torn, broken, or otherwise damaged, or has sustained wear, tear, or deterioration such that minor restoration is necessary.

1.25 Replacement. "Replacement" shall mean substantial reconstruction, restoration, or substitution of the whole or a substantial part of property that has been damaged or destroyed through usage or through hazard or catastrophe such that it is no longer usable or serviceable in its current condition.

1.26 Residence. "Residence" shall mean a structure erected upon a Lot intended for human residential use and occupancy.

1.27 Resident. "Residence shall mean any person who resides on a Lot within the Development whether or not such person is an Owner as defined in Section 1.23 above.

1.28 Rules. "Rules" shall mean the rules and regulations governing the use, occupancy, management, administration and operation of the Development or any part thereof as adopted and published by the Board of Directors from time to time.

2.1 Owners' Non-Exclusive Easements of Enjoyment. Every Owner of a Lot shall have a non-exclusive easement of use and enjoyment in, to and throughout the Common Area of the Development; provided, however, such non-exclusive easements shall be subordinate to and shall not interfere in any way with the exclusive easements, if any, appurtenant to Lots over Exclusive Use Common Area. Each such non-exclusive easement shall be appurtenant to and pass with the title to every Lot, subject to the following rights and restrictions:

2.3 Delegation of Use. Any Owner may delegate his rights of use and enjoyment of the Development, including easements, to the members of his or her family, tenants, contract purchasers, guests and invitees, and to such other persons as may be permitted by the Governing Documents and subject to the terms thereof; provided, however, that upon the leasing or renting of a Lot or upon occupancy of a Lot by a contract purchaser, the Owner shall be deemed to have delegated and assigned all such rights exclusively to the tenants or resident contract purchasers of such Lot. Each Owner shall notify the Secretary of the Association of the names of any tenants or any such contract purchasers of such Owner's Lot. Each Owner, tenant or contract purchaser shall also notify the Secretary of the Association of the names of ,all persons to whom such Owner, tenant or contract purchaser has delegated any rights of use and enjoyment in the Development as provided herein and the relationship which each such person bears to such Owner, tenant or contract purchaser. Any rights of enjoyment delegated pursuant hereto are subject to suspension to the same extent that rights of Owners are subject thereto as provided in the Declaration.

2.4 Common Area. Subject to the provisions of the Declaration, the Common Area shall be held, maintained, and used to meet the common interests of the Members of the Association, and their families, tenants, resident contract purchasers and guests as provided in the Governing Documents, and there shall be no use of the Common Area except by such persons. Except as otherwise provided in this Declaration, there shall be no obstruction of the Common Area nor shall anything be altered, constructed, placed, kept, stored, parked, planted on or removed from the Common Area without the prior-written consent of the Board. The Common Area shall be kept free of rubbish, debris and other unsightly or unsanitary materials. Each Owner shall avoid causing any damage to the Common Area and shall be liable to the Association for any such damage and shall reimburse to the Association all costs incurred by reason of any damage to the Common Area and improvements thereon, including landscaping, which is caused by an Owner or an Owner's family, pets, tenants, contract purchasers, guests, invitees, agents, or representatives as more particularly set forth in Article X, Section 10.3. Nothing shall be done or kept upon the Common Area which will result in the cancellation of any insurance maintained by the Association or an increase in premiums for such insurance.

2.5 Common Area Construction. Except as may be authorized by the Board,-no person or entity, other than the Association or its duly-authorized agents, shall construct, reconstruct, refinish, alter, or maintain any improvement upon the Common Area, or shall make or create any excavation or fill upon the Common Area, or shall change the natural or existing drainage of the Common Area, or shall plant, remove, or destroy any seed, plant material, tree, shrub, or other vegetation upon the Common Area.

2.6 Mechanic's Liens. In the event there shall be filed against the Common Area a Notice of Mechanic's Lien for, or purporting to be for, labor or material alleged to have been furnished or delivered for the benefit of any Owner or his or her Lot, the Owner of such Lot shall forthwith cause such lien to be discharged by payment, bond or otherwise. If the Owner fails to discharge the lien, the Board may send written notice to the Owner specifying that unless the Owner discharges the lien within five (5) days from. the date of such notice, the Board may cause the lien to be discharged. Within such five (5) day period, the Owner shall be permitted a hearing before the Board regarding the validity of such lien and any offsets or defenses thereto. At that time, the Board shall determine whether the lien adversely and improperly affects and encumbers the rights and interests of the Association or the other Owners. If the Board of Directors determines that the lien does adversely and improperly affect and encumber such rights and interests and that adequate protection of such rights and interests has not been provided, the Board may cause the lien to be discharged by payment, bond, or otherwise. The Board shall have the right to levy a Reimbursement Assessment against the Owner responsible for the lien in an amount equal to all amounts paid by the Association together with interest thereon at the legal rate and all costs and expenses paid or incurred in connection therewith, including reasonable attorneys' fees.

2.7 No Partition. There shall be no judicial partition of the Development or any part thereof, nor shall any Owner or any person acquiring any interest in the Development or any part thereof seek any judicial partition thereof; provided, however, that if any Lot shall be owned by two or more cotenants as tenants in common, or as joint tenants, nothing herein contained shall be deemed to prevent a judicial partition by sale as between such cotenants.

2.8 Party Walls. The following provisions shall govern party walls:

(a) General Rules of Law to Apply. Each wall which is built as a part of the original construction of the Residences within the Development and placed on the dividing line between the Lots shall constitute a party wall, and, to the extent not inconsistent with the provisions of this Article, the general rules of law regarding party walls and liability for property damage due to negligence or willful acts or omissions shall apply thereto.

(b) Sharing of Repair and Maintenance. The cost of reasonable maintenance and repair of a party wall shall be shared by the Owners who make use of the wall in proportion to such use.

(c) Destruction by Fire or Other Casualty. If a party wall is destroyed or damaged by fire or other casualty, any Owner who has used the wall may restore it, and if the other Owners thereafter make use of the wall, they shall contribute to the cost of restoration thereof in proportion to such use, without prejudice, however, to the right of any such Owners to call for a larger contribution from the others under any rule of law regarding liability for negligent or willful acts or omissions.

(d) Weatherproofing. Notwithstanding any other provision of this Article, an Owner who by his negligent or willful act causes a party wall to be exposed to the elements shall bear the whole cost of furnishing the necessary protection against such elements.

(e) Right to Contribution Runs With Land. The right of any Owner to contribution from any other Owner under this Article shall be appurtenant to and run with the land and shall pass to such Owner's successors in title.

(f) Arbitration. If any dispute arises concerning a party wall, or under the provisions of this Article, the dispute shall be resolved by binding arbitration pursuant to the provisions of Article X, Section 10.10 (d) of this Declaration.

3.1 Easements in General. There are hereby specifically reserved and granted for the benefit of the Lots and Lot Owners in common and for each Lot and Lot Owner severally, and for the Association, as their respective interests shall obtain, in addition to all easements, if any, reserved and granted on the Subdivision Map applicable to the Development, the easements, reciprocal negative easements, secondary easements and rights of way as particularly identified in this Article III.

3.2 Easements of Encroachment. Each Lot shall have an easement for support and settlement where the Residence built as part of the original construction of homes within the Development on such a Lot adjoins another Lot. There shall be reciprocal appurtenant easements of encroachment as between each Lot and such portion or portions of the Common Area adjacent thereto and/or as between adjacent Lots due to the unwillful placement or settling or shifting of the improvements constructed, reconstructed or altered thereon in accordance with the terms of the Declaration; provided, however, that in no event shall an easement for encroachment exist if such encroachment occurred due to willful conduct on the part of an Owner, tenant or the Association.

3.4 Easements Granted by Association. The Association shall have the power to grant and convey to any person or entity easements and rights of way, in, on, over or under the Common Area for the purpose of constructing, erecting, operating or maintaining thereon, therein or thereunder overhead or underground lines, cables, wires, conduits, or other devices for electricity, cable television, power, telephone and other purposes, public sewers, storm water drains and pipes, water systems, sprinkling systems, water, heating and gas lines or pipes, and any similar public or quasi-public improvements or facilities, and each purchaser, in accepting a Deed to a Lot, expressly consents thereto.

(a) Restrictions on Leasing. The restrictions on leasing and renting contained in this Section 4.2 shall not apply to any Member who is an Owner of a Lot on the date this Amended Declaration is recorded. Notwithstanding the foregoing, the restrictions on leasing and renting contained in this Section 4.2 shall apply to any Lot or Lots upon transfer of title to such Lot subsequent to the date this Amended Declaration is recorded.

(b) Exceptions. The Board of Directors shall have the right to waive some or all of the provisions of this Section 4.2 either in cases of deserving and unusual hardship or for a limited term not to exceed one (1) year upon written request of an Owner representing that he or she will retake possession and occupancy of the Residence as a Resident thereof upon the expiration of such limited term. The Board shall have the right to review and approve the lease for such limited term. Exceptions as authorized by the Board shall take precedence over the order of priority established pursuant to Subsection (c) vii, below.

(c) Procedure.

(i) Any Owner desiring to lease or rent his or her Residence shall submit an application in writing to the Board of Directors, which shall state: the name, mailing address, Residence address, and record ownership date of the Owner; the proposed lease term; the number of tenants; and such other information which the Board of Directors may reasonably require from time to time.

(ii) Each record Owner shall have the further right, upon -written request delivered to the Association, to appear in person before the Board of Directors and to discuss the request to lease or rent his or her Residence.

(iii) Within thirty (30) days after receipt of such application to lease or rent, the Board of Directors shall review such application, and approve or disapprove it in a written notice transmitted to the requesting Owner, which notice shall specify the exact reason or reasons therefor if the application is disapproved; provided that the Board shall grant the application, unless doing so will increase the number of Residences leased or rented within the Development to more than allowed under this Section 4.2 or will otherwise result in the violation of any provision of this Section 4.2.

(iv) If the application is disapproved, the record Owner concerned shall have a right to rehearing upon written request to the Board of Directors, at its next regular meeting, or as otherwise agreed between the parties. The Owner shall have the right to appear at the rehearing and present his or her case, and on termination of such rehearing, the Board shall transmit its written determination to the requesting Owner within ten (10) days thereafter, and, if again disapproved, shall specify the reasons for such disapproval.

(v) The decision of the Board of Directors in approving or disapproving an application of a record Owner to lease his or her Residence shall be absolute and conclusive, unless in clear violation of this Section 4.2.

(vi) The Board of Directors shall prepare a list of all record Owners currently leasing or renting a Residence, which list shall include the Owner's name, mailing address, Residence address, date of record of ownership and term of the lease. Such list shall be made available to any Owner upon payment of a reasonable administrative charge to be set by the Board of Directors.

(vii) The Board shall establish and maintain a priority list, identifying the name, mailing address, address of Residence, record date of ownership, and date of application of each Owner who has submitted a written request to the Board to lease or rent his or her Residence. When the number of Residences leased or rented in the Development is less than the number allowed under this Section, the Board shall authorize the Owner who submitted the earliest application to lease or rent his or her Residence; provided, however, that once an Owner obtains permission to lease or rent, he or she may do so to consecutive lessees or renters without interruption or may reoccupy his or her Residence for a period not to exceed thirty (30) days, without having to reapply to the Board for permission to lease or rent.

(d) Owner Responsibility. Each Owner leasing a Residence pursuant to this Section 4.2 shall be strictly responsible and liable to the Association for the actions of such Owner's tenant(s) in or about all Lots and Common Area and for each tenant's compliance with the provisions of all Association Governing Documents. An Owner leasing or renting a Residence shall provide the tenant(s) with copies of the Governing Documents and all subsequent Amendments.

(e) Requirements of Lease or Rental Agreement. Any lease or rental of any Residence within the Development shall be by written instrument, a copy of which shall be filed with the Board, which shall expressly provide that its terms are subject to all of the provisions of the Governing Documents, that the tenants and lessees of such Residence shall comply with all said provisions, and that any violation of any of said provisions shall constitute a breach and default of the terms of such lease or rental agreement. Any Lease or Rental Agreement entered into between an Owner and a lessee or renter shall be for a minimum term of one (1) year.

4.3 Restriction on Businesses. No business of any kind shall be established, maintained, operated, permitted or conducted within the Development, except such professional and administrative professions as may be permitted by applicable governmental ordinances provided that there shall be no external evidence thereof.

4.4 Offensive Conduct. Nuisances. No noxious, harmful or offensive activities shall be carried on, upon, or within any part of the Development, nor shall anything be done thereon which may be or become a nuisance, or cause unreasonable embarrassment, disturbance or annoyance to any residents of the Development, or which shall in any way interfere with their use of the Common Area and facilities thereon or the use and enjoyment of their Lots or Residences. Without limiting any of the foregoing, no resident shall permit noise, including but not limited to the barking of dogs, to emanate from the Resident's Lot, which would unreasonably disturb another Resident's enjoyment of his Lot or of the Common Area.

4.5 Hazards. There shall be no obstruction of any part of the Common Area.-Nothing shall be done, placed, or kept within the Development that will increase the rate of insurance or result in the cancellation of insurance under any insurance policy obtained by the Association, or which will be in violation of any governmental statute, ordinance, rule or regulation. Nothing shall be stored in the Common Area without the prior consent of the Board.

4.6 Sports Apparatus. No basketball standards or fixed sports apparatus shall be placed upon or attached to any Lot or garage without the written permission of the Board or Architectural Committee.

4.7 Mailboxes and Exterior Newspaper Tubes. Mailboxes shall comply with all applicable postal regulations. There shall be no free-standing exterior newspaper tubes without the approval of the Board or Architectural Committee.

4.8 Outside Drying and Laundering. Except in enclosed patio areas, no outside clothesline or other outside clothes washing, drying or airing facilities shall be maintained upon any Lot.

4.9 Antennae. Except for those erected, constructed or maintained by the Association, no outside mast, tower, pole, antennae or satellite dish shall be erected, constructed or maintained on the Common Area, the outside of any building on the Development, or upon any Lot, except as otherwise expressly approved by the Board or the Architectural Committee or as was initially installed during the construction of the buildings.

4.10 Animals. No animals or pets of any kind shall be kept, maintained or bred in any Residence or upon a Lot or elsewhere within the Development, except that domestic dogs, cats, birds, fish and other customary household pets may be kept in reasonable numbers, subject to City ordinances and the Rules, provided they are not kept, bred or raised therein for commercial purposes. As used in this Declaration, "reasonable numbers" shall be deemed to limit the total number of all pets kept on a Lot to the number of pets permitted by City ordinance. While in Common Areas each dog must be restrained on a leash held by a responsible person capable of controlling it. The Association shall have the right to prohibit the keeping of any animal which constitutes, in the sole and exclusive opinion of the Board, a nuisance to any other person. Each Owner, Resident, and any person bringing or keeping a pet within the Development shall be absolutely liable to the Association and all other persons for any injury or damage to persons or property caused by any pet brought upon or kept upon the Development by such person or by members of his or her family, tenants, guests or invitees. The Board may adopt and enforce Pet Rules in addition to the provisions of this Section 4.10.

4.11 Trash Disposal. No rubbish, trash, accumulated waste plant material, garbage or other waste shall be allowed to accumulate on Lots. Any trash that is accumulated by an Owner outside the interior walls of a Residence shall be stored entirely within appropriate covered disposal containers and facilities, or must be kept in an appropriate, safe and sanitary facility and manner within the enclosed patio area. Any extraordinary accumulation of rubbish, trash, accumulated waste plant material, garbage or debris (such as debris generated upon vacating of premises or during the construction of modifications and improvements) shall be removed from the Development to a public dump or trash collection area by the Owner or tenant at his or her expense. The Association shall be entitled to impose reasonable fines and penalties for the collection of garbage and refuse disposed in a manner inconsistent with this section. No portion of any Lot shall be used for the storage of building materials other than in connection with approved construction.

4.12 Signs. No sign of any kind shall be displayed to the public view from any portion of the Development except that this limitation shall not apply to:

4.13 Vehicles and Parking. No trailer, camper, mobile home, boat or similar equipment or commercial vehicle, truck other than a standard size pickup truck, or dilapidated, inoperable or abandoned vehicle shall be parked, kept, stored or permitted to remain upon any area within the Development, other than temporarily in accordance with the Rules. The term "commercial vehicles" shall not include sedans or standard size pickup trucks which are used both for business and personal uses, provided that any signs or markings of a commercial nature on such vehicles shall be unobtrusive and inoffensive as determined by the Board. No unreasonably noisy and no smoky vehicles shall be operated within the Development. Designated guest parking areas within the Common Area are to remain open for use by guests only.

4.15 Carports. Each Owner and Resident shall keep his or her carport in a neat, orderly, sanitary and safe condition. The carports are to be used for the parking of standard authorized vehicles, and shall not be converted into living quarters or work shops.

4.16 Outbuildings. No outbuilding, tent, shack, trailer, shed, or temporary building of any kind shall be located within the Development, except in strict compliance with the provisions of this Declaration, and in no event shall any such structure or any garage be used as a residence or for residential purposes, either temporarily or permanently.

5.1 Management and Operation. The Association shall manage and operate the Development in accordance with the applicable provisions of the Governing Documents and the applicable provisions of California law, including provisions of law applicable to a non-profit mutual benefit corporation and to a common interest development. The Association shall have all of the powers set forth in the Governing Documents together with general power to do any and all things that a non-profit mutual benefit corporation may lawfully do under the laws of the State of California, subject only to the limitations upon the exercise of such powers as are expressly set forth in the Governing Documents.

5.2 Membership. Every Owner of a Lot within the Development shall be a Member of the Association and shall remain a Member thereof until such time as his or her Lot ownership ceases for any reason. Membership shall be appurtenant to and may not be separated from ownership of a Lot and shall not be transferred, encumbered, pledged, alienated or otherwise hypothecated in any way, except in connection with the sale or encumbrance of the Lot to which it is appurtenant.

5.3 Voting. Only Members shall be entitled to vote, and only one vote shall be cast for each Lot, as more particularly set forth in the By-Laws.

5.4 Board of Directors. The affairs of the Association shall be managed by or under the direction of a Board of Directors. The number and qualifications of Directors shall be as established in the By-Laws, and the members of the Board shall be elected as provided in the By-Laws. The Board of Directors shall have all of the powers and duties set forth in any provision of the Governing Documents, including without limitation such powers and duties as may be expressly set forth in this Declaration.

5.5 Association Rules. The Board of Directors shall have the power and the authority to establish, promulgate, amend, repeal and enforce such Rules as the Board deems necessary for the management and operation of the Development and the conduct of business and affairs of the Association. Such Rules may concern, but need not be limited to, matters pertaining to use of the Common Area, including any Exclusive Use Common Area; pets; signs; collection and disposal of refuse; minimum standards for maintenance of property; use of recreation facilities; parking and traffic regulations; rental or leasing of Lots within the Development; the personal conduct of persons within the Development; and any other subject matter within the jurisdiction of the Association as provided in the Governing Documents or by law.

5.6 Manager and Other Personnel. The Board of Directors shall have the power and authority to employ a manager and such other persons or entities as the Board shall deem appropriate to assist it in managing the Development and conducting the business and affairs of the Association, as more particularly set forth in the By-Laws.

5.7 Assessments. The Board shall have the power and duty to levy and collect assessments, as more particularly set forth in Article VI of this Amended Declaration.

5.8 Insurance. The Board shall procure and maintain liability insurance and property insurance as it shall deem proper and as more particularly set forth in the By-Laws.

5.9 Capital Improvements. The Board of Directors shall have the power and authority to provide for the construction, reconstruction, installation, or acquisition of capital improvements upon the Common Area.

5.10 Dedication. The Board of Directors shall have the power and authority to dedicate, sell, or transfer any interest in or to all or any part of the Common Area to any person or entity, including, without limitation, any public agency, authority, or utility, to be used for such purposes and subject to such conditions as the Board shall deem necessary, appropriate or beneficial to the Association and not inconsistent with its purposes and interests; provided, however, that no such dedication, sale, or transfer shall be effective unless the terms of such dedication, sale, or transfer has been approved by at least two thirds (2/3) of the total Membership.

5.11 Acquisition of Property. The Board acting on behalf of the Association shall have the power to acquire (by gift, purchase or otherwise), own, hold, improve, build upon, operate, and maintain real or personal property in connection with the affairs of the Association.

5.12 Access. The Board and its duly authorized agents or representatives shall have the right, after reasonable notice to the Owner thereof, to enter any Lot for the purpose of performing the maintenance authorized herein or for any other purpose reasonably related to the performance by the Association or the Board of their obligations and authority.

6.1 Covenant of Owner. Each Owner of a Lot within the Development, by acceptance of a deed or other conveyance thereof, whether or not it shall be so expressed in such deed or conveyance, shall be deemed to have covenanted and agreed to pay to the Association: 

(a) Annual Assessments

(b) Special Assessments 

(c) Reimbursement Assessments; and 

(d) Enforcement Assessments levied by the Association as hereinafter provided, together with all additional charges. 

Such deed or conveyance shall be deemed to vest in the Association the right and power to initiate all actions and procedures as the Board shall deem necessary or appropriate for the collection of such assessments and charges and for the enforcement of the liens hereinafter provided for. Each assessment levied by the Association under this Article, together with all additional charges, shall be a separate, distinct, and personal debt and obligation of any Owner against whom it is assessed, and shall bind his or her heirs, devisees, personal representatives, successors and assigns. Such obligation to pay assessments and charges and the right and power of the Association to initiate all actions and procedures for. collection shall run with the land, so that each successive Owner or Owners of record of any Lot within the Development shall, in turn, become personally liable to pay all such assessments and charges assessed during the time he or she is record Owner of such Lot. After a record Owner transfers, of record, any Lot he or she owns, he or she shall not be personally liable for any assessments levied thereafter with respect to such Lot. Such Owner shall remain personally liable, however, for all unpaid amounts due and owing at the time of transfer, together with applicable charges accruing until time of collection. A contract seller of any Lot shall continue to be liable for all assessments and charges until a conveyance by deed of such Lot is recorded in the Office of the County Recorder of Butte County.

6.3 Purpose of Annual Assessments. The Annual Assessments levied by the Board shall be used exclusively to pay for the costs of management and operation of the Development, of conducting the business and affairs of the Association, to promote the recreation, health, safety, welfare, benefit and interests of the Owners and Residents in the Development, and for the improvement and maintenance of the Common Area and, to the extent provided for in the Governing Documents or by law, of the Lots situated within the Development or which, in the opinion of the Board, shall be deemed to be necessary or proper for the management of the Development or of the affairs of the Association, or the benefit of the Lot Owners, or for the enforcement of the Governing Documents. The Annual Assessments shall include an amount to be allocated for contingencies and to a reserve fund for restoration, repair and/or replacement of those components for which the Association is responsible and which must be repaired or replaced on a periodic basis.

6.4 Annual Assessments.

6.5 Special Assessments. If at any time during any fiscal year the Annual Assessment proves inadequate for any reason, including nonpayment of any Owner's share thereof or the unexpected repair, replacement or reconstruction of improvements located in the Development, or if funds are otherwise required for any authorized activity of the Association, the Board may levy a Special Assessment in the amount of such actual or estimated inadequacy or cost, which amount shall be allocated and assessed equally among the Lots, except as may be otherwise provided in Article VII of this Amended Declaration; provided, however, that, except in the case of an emergency situation as defined in section 1366 of the California Civil Code and except in the case of restoring funds temporarily transferred from a reserve fund to the Association's operating fund as provided by law, in any fiscal year the Board may not levy such Special Assessments which, in the aggregate, exceed five percent (5%) of the budgeted gross expenses of the Association for that fiscal year, except upon the affirmative vote or written consent of at least a majority of the Members voting on any such Special Assessment, provided that the number of Members voting thereon shall be sufficient to at least constitute a quorum of Members at a meeting of the Association as set forth in the By-Laws.

6.6 Reimbursement Assessments. The Association shall levy a Reimbursement Assessment against any Owner and his or her Lot if any act or omission of such Owner or of members of his or her household or his or her tenants, contract purchasers, guests, invitees or pets, or the failure of any such person to comply with any provision of the Governing Documents, has necessitated or resulted in an expenditure of funds by the Association. A Reimbursement Assessment shall include any costs, including attorneys' fees, incurred by the Association and shall be due and payable to the Association when levied.

6.7 Enforcement Assessments. The Board may levy an Enforcement Assessment, and any fine imposed by the Board in accordance with the provisions of the Governing Documents shall be deemed to be such an Enforcement Assessment, for violation of any of the provisions of the Governing Documents and any Enforcement Assessment shall include any costs, including attorneys' fees, incurred by the Association in connection with such violation and shall be due and payable to the Association when levied.

6.8 Failure to Fix Assessments. The failure or omission by the Board to fix or levy any Annual Assessment provided for by the terms of this Declaration before the expiration of any fiscal year, for that fiscal year or the next fiscal year, shall not be deemed either a waiver or a modification in any respect of the provisions of this Declaration, or a release of any Owner from the obligation to pay assessments or any installment thereof for that or any subsequent year, but the amount of the Annual Assessment fixed for the preceding fiscal year shall be the amount of the Annual Assessment for the ensuing fiscal year until a new Annual Assessment is levied.

6.10 Delinquent Assessments. Any installment or other portion of an assessment not paid within fifteen (15) days after its due date shall be delinquent and shall be subject to interest and late charges not to exceed the maximum rate permitted by law, as well as all other additional charges. The Board, on behalf of the Association, may enforce the payment of any delinquent assessment plus applicable charges by bringing an action at law against any Owner personally obligated to pay the same, or by foreclosing the Lien against the Owner's Lot. No procedures shall be initiated to foreclose the Lien securing any assessment levied under this Article until at least ten (10) days following the mailing of a Notice of Delinquent Assessment, duly signed by a designated officer or agent of the Association, to the Owner or Owners of' the subject Lot, and the recording of such Notice in the Office of the Recorder of Butte County, California. Said Notice of Delinquent Assessment shall state the amount of the assessment, together with all accrued additional charges as of the date of such Notice; a description of the Lot against which the same has been assessed; the name or names and mailing addresses of the Record Owner or Owners thereof; and the name and address of the Trustee authorized by the Association to enforce the Lien by foreclosure and sale. Upon the recording of the Notice referred to above, the Association may, at its option, declare the entire balance of all sums then due or to become due from the Owner, immediately due and payable, which total sum may then be included in any suit, action, or other procedure initiated to collect said sums, including all additional charges.

6.11 Power of Sale. Each Owner does hereby appoint the Association as Trustee to enforce and to foreclose any Lien which is established pursuant to the terms of this Declaration, by private power of sale, as provided in Division 3, Part 4, Title XlV, Chapter 2, Article 1, of the Civil Code of the State of California, and does further grant to the Board of Directors, on behalf of the Association, the authority and power to sell the Lot of such Owner in the event of any default in payment of any assessments or additional charges levied against such Lot, for lawful money of the United States, to the highest bidder, to satisfy said Lien. The Association, as Trustee for the remaining Owners, or any other Owner, may purchase the Lot at said sale. The Board may commence any procedure for the collection of delinquent assessments upon its own decision, and it must so proceed upon the written request therefor signed by any five (5) Owners. The remedies provided in this Declaration for collection of delinquent assessments shall be cumulative and not exclusive.

6.12 Certificate of Satisfaction. Upon payment in full of a delinquent assessment, including any charges, or the satisfaction thereof, the Board shall cause to be recorded, in the same manner as the Notice of Delinquent Assessment, a further Certificate stating the satisfaction thereof, and the release of the Lien.

6.13 Priority. Except as otherwise expressly provided by law, the Lien securing each of the assessments provided for under this Article VI shall have priority as of the date of recording of the original Declaration applicable to the Development over all other liens and encumbrances applicable to the Lots; provided, however, that such assessment lien shall be subordinate to the Lien of any first mortgage or deed of trust recorded against the Lot; and provided, further, that such subordination shall apply only to the assessments which have become due and payable-prior to the sale of such property pursuant to a Decree of Foreclosure of any such mortgage or deed of trust, or pursuant to a Power of Sale contained in any such mortgage. Such foreclosure sale shall not relieve such property from liability for any assessments and charges thereafter becoming due, nor from the lien of any such subsequent assessment.

6.14 Association Funds. Unless otherwise determined by the Board, the assessments collected by the Association shall be properly deposited into at least two separate accounts in such bank or other depository selected by the Board, which accounts shall be clearly designated CHICO OAKS HOMEOWNERS' ASSOCIATION OPERATING ACCOUNT and CHICO OAKS HOMEOWNERS' ASSOCIATION RESERVE ACCOUNT. The assessments collected by the Association shall be held in trust by the Association for and on behalf of each Owner and shall be used for the purposes set forth in Section 6.3 of this Article vi. The Board Shall allocate a portion of said funds as collected for the annual maintenance and operation of the Development and another portion of said funds as collected as reserves for contingencies, deferred maintenance, repair and replacement of the capital improvements of the Development, as specified in the annual budget. Upon sale or transfer of any Lot by any Owner, the Owner's interest in the funds held in trust by the Association shall terminate and shall be deemed automatically transferred to the successor-transferee of such Owner.

6.16 Property Exempt From Assessments. The following property subject to this Declaration shall be exempt from the assessments, charges and liens created herein:

(a) All property dedicated to and accepted by the City or County or other local public authority and devoted to public use; and

(b) Any Lot which is owned by the Association as a result of the Association having acquired such Lot through foreclosure; provided, however, that such exemption shall be applicable only during the period in which the Association is record owner of such Lot; and

(c) All Common Area.

7.1 Replacement or Repair of Association Property. In the event of damage to or destruction of the property of the Association or any part thereof, the Association shall repair or replace the same from the insurance proceeds payable to it by reason of such damage or destruction.

(a) If any such damage or destruction was insured against and the insurance proceeds are insufficient to cover the costs of repair or replacement of the property damaged or destroyed, the Association may levy a Special Assessment against the Members of the Association as provided in this Declaration to cover the additional cost of the repair or replacement not covered by the insurance proceeds.

(b) The Members may elect not to cause such replacement or repair by the vote or written consent of two-thirds of the total voting power of the Association.

(c) If there is an election not to rebuild or repair, the applicable insurance proceeds shall be distributed by the Association to the Members pro rata or otherwise made use of as determined by the vote of the Members.

7.3 Condemnation of Common Area. If any part of the C6mmon Area is condemned or taken for any public or quasi-public use, pursuant to any statute, by right of eminent domain, or by private purchase in lieu of eminent domain, the compensation or award received by the Association shall be used in the manner determined by the Board of Directors, provided that such use shall not be inconsistent with the purposes of the Association.

7.4 Condemnation of Lots. If an entire Residence or Lot, or so much thereof as to render the remainder unfit for use as a residence, is condemned or sold for a public or quasi-public use, the Owner's membership in the Association shall terminate as of the last day of the month in which the condemnor obtains the right to possession, or upon Owner's vacating the premises, whichever occurs last. If only a portion of such Residence or Lot is taken and the remainder is fit for use as a residence, the Owner shall continue to be a Member of the Association. In any condemnation action involving an Owner's Residence or Lot, the Association shall have the right to seek compensation for any damages incurred by the Association.

8.1   Association Responsibility.

(a) Maintenance of Common Area. Subject to Section 8.1(b) below, the Association shall Maintain, Repair, and Replace (i) the Common Area and all facilities, improvements, and landscaping thereon, including, without limitation, the swimming pool, parking areas, walks, landscaping, and utility facilities (except for those utility, facilities which are maintained by public or private utility companies or agencies), and (ii) all other real and/or personal property that may be acquired by the Association, keeping such property in good condition and repair. Except as specifically indicated in Section 8. l(b), the Association shall not be responsible for the Maintenance, Repair, or Replacement of any Exclusive Use Common Areas.

(b) Maintenance of Exclusive Use Common Area Carports. The Association shall have the following maintenance obligations with respect to the Exclusive Use Common Area carports:

(i) The Association shall Maintain, Repair, and Replace the carport roofs, pads, and walls except for the walls separating the carports from the Residence patios.

(ii) The Association shall paint the carports including the carport sides of the walls separating the carports from the Residence patios and the carport sides of the doors providing access to the carports from such patios, but excluding the Residence sides of such walls and doors.

(iii) The Association shall Maintain, Repair, and replace the light fixtures in the carports including the light bulbs·

(iv) Except as specifically provided in Section 8.1(b)(i) through Section 8.1(b)(iii), the Association shall have no other responsibility for the Maintenance, Repair, or Replacement of the Exclusive Use Common Area carports.

(c) Maintenance of Lots. The Association shall have the following maintenance obligations with respect to the Lots:

(i) The Association shall Maintain, Repair, and Replace the roof coverings on the Residences from the shingles down to, and including, the plywood or other surface to which the shingles are attached. The Association's responsibilities for roof coverings pursuant to this Section 8. l(c)(i) does not extend to patio shed roofs, the Association's responsibility for which is set forth in Section 8.1(c)(ii).

(ii) The Association shall Replace the roof coverings of the sheds located on the Residence patios of the Lots from the shingles down to, and including, the plywood or other surface to which the shingles are attached, when the Association Replaces the carport roofs of the carports assigned as Exclusive Use Common Area to such Lots provided that the Board, in its discretion, deems such Replacement necessary at the time such carport roof is Replaced. Except as stated in this Section 8. l(c)(ii), the Association shall have no responsibility for the Maintenance, Repair, and Replacement of such roofs, which shall be the responsibility of the Owner of the Lot. Notwithstanding the Association's Replacement responsibilities set forth above, the sheds should not be considered waterproof. Accordingly, the Association shall not be responsible for damage to property placed or stored in such sheds.

(iii) The Association shall Maintain, Repair, and Replace the gutters and downspouts on the Residences.

(iv) The Association shall paint, stain, Maintain, Repair, and Replace the exterior siding on the Residences. The term "exterior siding" shall exclude (1) the siding on the walls enclosing the Residence patios including, without limitation, the Residence siding within the patio areas from the base of such siding up to the flashing which is located at approximately the same height as the roofs of the storage sheds located on the patios, and (2) the siding on the storage sheds located on the patios.

(v) The Association shall paint, but shall not be otherwise responsible for the Maintenance, Repair, and Replacement of, the exterior portions of the front doors and front door frames of the Residences.

(vi) Except as specifically and expressly provided in Section 8.1(c)(i) through Section 8. l(c)(v), the Association shall have no responsibility for the upkeep, Maintenance, Repair, or Replacement of the Lots, or any improvements thereon including the Residences. Without limitation, the Association shall not be responsible for the structural portions of roofs or other structural components of Residences, screen doors, glass surfaces, window panes, window frames, screens, exterior lights, or any other improvements placed or erected on the Lots, including the Residence patios.

8.2 Owner Responsibility.

(a) Maintenance of Lots. Except to the extent that the Maintenance, Repair, or Replacement of the Lots, or the improvements thereon, is expressly and clearly made the responsibility of the Association pursuant to Section 8.1 above, each Owner shall be responsible for the cleaning, upkeep, Maintenance, Repair and Replacement of his or her Lot, and all improvements thereon, including without limitation the following:

(i) the structural portions of the Residence roofs;

(ii) the decks, patios, and all exterior lights;

(iii) the skylights, solar devices, glass surfaces, window fixtures and screens, exterior doors and door frames, screen doors, and all hardware related to any , of the above, except that the Association shall paint the exterior portions of the front doors and front door frames pursuant to Section 8. l(c)(v);

(iv) except as provided in Section 8.1(b)(ii), the walls enclosing the Residence patios (which shall not be considered fences and which, where applicable, shall be subject to the provisions of Section 2.8 regarding party walls) and the doors, including door frames, providing access to the carports from such patios;

(v) the plumbing, electrical, and heating and air conditioning systems, including drip lines, whether or not such heating and air conditioning systems, or any portion thereof, are located on the Common Area;

(vi) the concrete and paved surfaces, landscaping, and all other improvements to, or components of, the Residence patios;

(vii) except as provided in Section 8.1(c)(ii), the sheds located on the Residence patios, including without limitation the siding, doors, and door frames; and

(viii) the fireplaces, flues, chutes and chimneys.

(b) Exclusive Use Common Area. With the exception of those responsibilities for the Maintenance, Repair, and Replacement of the Exclusive Use Common Area carports specifically assigned to the Association pursuant to Section 8. lco), each Owner shall be responsible for the cleaning, Maintenance, Repair, and Replacement of any Exclusive Use Common Area which is assigned to his or her Lot.

(c) Compliance With Architectural Provisions. An Owner's' right and responsibility to Maintain, Repair, or Replace his or her Lot, the improvements thereon, or the Exclusive Use Common Area assigned to his or her Lot, shall be subject to all applicable provisions of the Governing Documents relating to architectural control.

(d) Replacement of Shed Siding and Rooftop Air Conditioning Units. Without limiting the general application of Section 8.2(c):

(i) Whenever the siding on the sheds located in the Residence patios is Replaced, the replacement siding shall include vents for the prevention of moisture buildup inside the sheds. Such siding replacement and vent installation shall be subject to approval by Architectural Committee which may specify, without limitation, minimum vent sizes and louver requirements to prevent rain intrusion into the sheds.

(ii) Whenever a rooftop air conditioning unit on a Residence is Replaced, the replacement equipment shall include a drip line which prevents the moisture discharged from the equipment from coming into contact with the roof. Such air conditioning unit Replacement shall be subject to approval by the Architectural Committee which may specify, without limitation, the type and color of materials used for the drip lines and their manner and location of installation.

8.3 Owner Liability.

9.5 Submission of Plans and Specifications. No building, fence, wall, sign, obstruction, balcony, screen, patio cover, tent, awning, carport cover, improvement or other structure of any kind or any landscaping shall be commenced, erected, painted or maintained within any Lot or Exclusive Use Common Area, nor shall any exterior addition to or change or alteration therein be made, until the plans and specifications showing the nature, kind, shape, color, height, size, materials, and location of the same shall have been submitted to and approved in writing by the Architectural or Landscape Committees, as the case may be, as to quality of workmanship and design, harmony of external design and location in relation to surrounding structures, topography and finished grade elevation.

9.6 Application. Any Owner proposing to perform any work of any kind whatever, which requires prior approval pursuant to this Article IX shall apply for approval by notifying the Association at its offices, in writing, of the nature of the proposed work and furnishing, the plans and specifications required under Section 9.5 above, along with such other information and documentation as the appropriate Committee or Board may require, and by paying a processing fee as established by the applicable Committee.

9.7 Grant of Approval. The appropriate Committee shall grant the requested approval only if:

9.8 Form of Approval. All approvals and rejections of requests for approval shall be in writing; provided, however, that any request for approval which has not been acted upon within forty-five (45) days from the date of submission thereof to the Association office shall be deemed approved.

9.9 Board Review. The Committees shall submit a copies of its findings and determinations to the Board. The Board may review any decision of the Architectural or Landscape Committee, upon its own initiative, or upon the written request of such Committee or of any Association Member provided that any such request shall be presented to the Board within thirty (30) days after submission of the Committee's findings and determinations to the Board.

9.10 Commencement. Upon receipt of approval pursuant to Sections 9.7 and 9.8 above, the Owner shall, as soon as practicable, satisfy all conditions thereof and diligently proceed with the commencement and completion of all construction, reconstruction, refinishing, alterations and excavations pursuant to said approval, said commencement to occur, in all cases, within ninety (90) days from the date of such approval. If the Owner shall fail to comply with this paragraph, any approval previously given shall be deemed revoked unless the Board, upon written request of the Owner made prior to the expiration of said ninety (90) day period, extends the time for such commencement. No such extension shall be granted except upon a finding by the Board that there has been no change in the circumstances upon which the original approval was granted.

9.11 Completion. The Owner shall, in any event, complete the construction, reconstruction, refinishing or alteration of any such improvement within one (1) year after commencing construction thereof, except and for as long as such completion is rendered impossible or would result in great hardship to the Owner due to strikes, fires, national emergencies, natural calamities or other supervening forces beyond the control of the Owner or his agents. If an Owner fails to comply with this Section 9.11, the appropriate Committee shall notify the Board of such failure, and the Board shall proceed in accordance with the provisions of Section 9.12 below, as though the failure to complete the improvements was a noncompliance with approved plans.

9.12 Inspection. Inspection of work and correction of defects therein shall proceed as follows:

(a) Upon the completion of any construction, reconstruction, alteration or refinishing of the exterior of any improvements, or upon the completion of any other work for which approved plans are required under this Article, the Owner shall give written notice thereof to the appropriate Committee.

(b) Within sixty (60) days thereafter, the appropriate Committee, or its duly authorized representative, may inspect such improvement to determine whether it was constructed, reconstructed, altered or refinished to substantial compliance with the approved plans.  If the appropriate Committee finds that such construction, reconstruction, alteration or refinishing was not done in substantial compliance with the approved plans, it shall notify the Owner in writing of such non-compliance within such sixty (60) day period, specifying particulars of non-compliance and shall require the Owner to remedy such non-compliance.

(c) If the Owner shall have failed to remedy such non-compliance upon the expiration of thirty (30) days from the date of such notification, the appropriate Committee shall notify the Board in writing of such failure. The Board shall then set a date on which a hearing before the Board shall be held regarding the alleged noncompliance. The hearing date shall be not more than thirty (30) nor less than fifteen (15) days after notice of the noncompliance is given to the Board by the appropriate Committee. Notice of the hearing date shall be given at least ten (10) days in advance thereof by the Board to the Owner, to any appropriate Committee and, in the discretion of the Board, to any other interested party.

(d) At the hearing the Owner, the appropriate Committee and, in the Board's discretion, any other interested person, may present information relevant to the question of the alleged noncompliance. After considering all such information, the Board shall determine whether there is a non-compliance, and, if so, the nature thereof and the estimated cost of correcting or removing the same. If a non-compliance exists, the Board shall require the Owner to remedy or remove the same within a period of not more than forty-five (45) days from the date of the Board's ruling. If the Owner does not comply with the Board's ruling within such period or within any extension of such period as the Board, in its discretion, may grant, the Board, at its option, may either remove the non-complying improvement or remedy the noncompliance and all expenses incurred in connection therewith shall be assessed against the Owner as a Reimbursement Assessment.

(e) If, for any reason, the appropriate Committee fails to notify the Owner of any non-compliance within sixty (60) days after receipt of said notice of completion from the Owner, the improvement shall be deemed to be in accordance with said approved plans.

Preliminary Approval. Any Owner proposing to construct improvements requiring the prior approval of the Architectural or Landscape Committee may apply for preliminary approval by submission of preliminary drawings of the proposed improvements in accordance with the Architectural or Landscape Rules. The purpose of the preliminary approval procedure is to allow an Owner proposing to make substantial improvements an opportunity to obtain guidance concerning design considerations before expending substantial sums for plans and other exhibits required to apply for final approval. Application for preliminary approval shall be considered and disposed of as follows:

9.16 Liability. Neither the Board of Directors, nor the Architectural or Landscape Committees, nor any member thereof shall be liable to the Association or to any Owner for any damage, loss or prejudice suffered or claimed on account of: (a) the approval or disapproval of any plans, drawings and specifications, whether or not defective; (b) the construction or performance of any work, whether or not pursuant to approved plans, drawings, and specifications; (c) the development of any property within the Development; or (d) the execution and filing of an estoppel certificate pursuant to Section 9.15, whether or not the facts therein are correct; provided, however, that such member has acted in good faith on the basis of such information as may be possessed by it or him.

9.17 Compliance With Governmental Requirements. The application to the Association and the review and approval of any proposals, plans or other submittals shall in no way be deemed to be satisfaction of or compliance with any building permit process or any other governmental requirements, the responsibility for which shall lie solely with the respective Owner.

10.1 Violations as Nuisance. Every act or omission constituting or resulting in a violation of any of the provisions of the Governing Documents shall be deemed to constitute a nuisance and, in addition to any other remedies which may be available, such nuisance may be abated or enjoined by the Association or its Officers or Board of Directors or by any Owner; provided, however, that the Board shall not be obligated to take action to abate or enjoin a particular violation if, in the exercise of its discretion, the Board determines that acting to abate or enjoin such violation is not likely to foster or protect the interests of the Association and its Members as a whole.

10.2 Violation of Law. Any violation of a state, municipal or local law, ordinance or regulation pertaining to the ownership, occupation or use of any property within the Development is hereby declared to be a violation of this Declaration and subject to any and all of the enforcement procedures set forth herein.

10.3 Owners' Responsibility.

(a) Responsibility for Conduct of 0there. Each Owner shall be fully responsible for informing members of his or her family and his other tenants, contract purchasers and guests of the provisions of the Governing Documents, and shall be fully responsible for any violation of the provisions of the Governing Documents by members of his or her family or his or her tenants, contract purchasers or guests. Each Owner shall further be fully responsible for the conduct and activities of his or her pets or those of members of his or her family or of his or her tenants, contract purchasers and guests.

(b) Responsibility for Damage. If any damage results to any portion of the Development from the negligent or intentional conduct of any Owner or Resident, or his or her family, contract purchasers, tenants, guests, or household pets, or from the utilities located within such person's Residence, or from vegetation placed or planted in the Development by or on behalf of any such person, the cost of making any necessary repairs shall be the responsibility of the Owner of the particular Lot involved in said negligent or intentional conduct. If the Owner of such Lot does not promptly repair such damage to the satisfaction of the Board, the Board may have the damage repaired and charge the Owner therefor in the form of a Reimbursement Assessment.

(a) .Rights Generally. The Association, its Directors, Officers or agents and any Owner shall have the right to enforce any and all provisions of the Governing Documents by any proceeding at law or in equity, or through the use of such other remedies as are available and deemed appropriate by the Board.

(b) Not In Good Standing. Upon a determination by the Board of Directors, after prior notice to the affected Member and an opportunity for a hearing, that said Member has violated any provision of the Governing Documents including a failure to pay any assessment when due, the Board may give notice in writing to such Member that he or she is deemed to be a Member not in good standing. Such Member shall be deemed to be a Member not in good standing until such time as the Board shall determine in writing that the violation which resulted in the Board's determination that the Member was not in good standing has been cured or remedied or, on some other basis as in the judgment of the Board is just and proper, that such Member shall again be deemed to be a Member of the Association in good standing.

(c) Imposition of Sanctions. In the event of a breach or infraction of any provision of the Governing Documents by an Owner, members of an Owner's family, or his or her tenants, contract purchasers or guests, the Board shall have the power to impose a sanction against the Owner who is responsible as provided in Subsection 10.3(a) for such breach or infraction. A sanction may include, but shall not necessarily be limited to, the imposition of a monetary penalty and/or the suspension of an Owner's rights as a Member of the Association, including an Owner's voting rights or an Owner's right to use the recreational or community facilities on the Common Area. Imposition of a sanction shall be effective only after notice and an opportunity for hearing as provided in the By Laws. Any monetary penalty imposed pursuant to this Section shall not exceed one hundred dollars ($100.00) for each violation, as more particularly set forth in the By Laws. The payment of any such monetary penalty may be enforced as an Enforcement Assessment as provided in Article VI as well as in any manner permitted by law. Further, each Owner shall be obligated to pay Reimbursement Assessments levied by the Board for reimbursement of any costs incurred by the Association relating to violation of any provisions of the Governing Documents by such Owner's family, tenants, contract purchasers, guests, pets or other invitees.

(d) Inadequacy of Legal Remedy. Except for the non-payment of any assessment levied pursuant to the provisions of Article VI of this Amended Declaration, it is hereby declared that a' remedy at law to recover damages for a default in the performance of any of the terms and provisions of any of the Governing Documents or for the breach or violation of any such provisions is inadequate and that the failure of any Owner or a member of the family of any Owner or an Owner's tenants, guests, or household pets or any other occupant or user of any of the property within the Development to comply with any provision of the Governing Documents may be enjoined in any judicial proceedings initiated by the Association, its Officers or Board of Directors, or by any Owner or by their respective successors in interest.

(e) Limitation on Disciplinary Rights. The Association shall not have the power and authority to cause a forfeiture or abridgment of a Member's right to the full use and occupancy of his or her Residence as the result of the failure by such Owner, .members of such Owner's family, or his or her tenants, guests, invitees or household pets to comply with any provision of the Governing Documents, except where such forfeiture or abridgment is the result of the judgment of a court of competent jurisdiction, a decision arising out of an arbitration proceeding, or a foreclosure or sale under private power of sale for failure of such Owner to pay assessments levied by the Association pursuant to Article VI of this Amended Declaration; provided, however, that the provisions of this Subsection 10.4 (e) shall not affect the Association's right to impose fines or monetary penalties or to suspend an Owner's membership rights, as provided in the Governing Documents.

10.5 Disciplinary Rules. The Board or a committee appointed by the Board for that purpose may adopt rules and regulations that further elaborate upon and refine procedures for conducting disciplinary proceedings and otherwise imposing sanctions upon Members of the Association for violation of provisions of the Governing Documents. Such rules, when approved and adopted by the Board, shall be deemed to be a part of the Association Rules provided for in and constituting a part of the Governing Documents.

10.7 Non-Waiver. Failure to enforce any provision of the Governing Documents at any time shall not be deemed a waiver of the right to do so thereafter with respect to the same or any other violation of any provision of the Governing Documents.

10.8 Notices. Any notices required or given under this Article X shall, at a minimum, set forth the date, time and location of any hearing, a brief description of the act or omission constituting the alleged violation of the Governing Documents, a reference to the specific Governing Document provision or provisions alleged to have been violated, and the sanction, disciplinary action, or other enforcement action being contemplated by the Board, if any. The notice shall be in writing and may be given by any method reasonably calculated to give actual notice to the affected Member; provided, however, that if notice is given by mail, it shall be sent by first class mail, postage prepaid, sent to the most recent address for the affected Member as shown on the records of the Association.

10.10 Alternative Dispute Resolution. Prior to instituting any judicial action arising out of any dispute between (1) the Association and an Owner or a member of his or her family, or (2) between Members of the Association or their family members which relates to the rights, duties and obligations arising out of or in any way connected with a claimed violation of the Governing Documents or the Board's interpretation or enforcement of the Governing Documents (hereinafter collectively referred to as "Association Dispute"), the Association Dispute shall be submitted to alternative dispute resolution procedures as herein described. Notwithstanding the foregoing, however, the power and duty of the Board of Directors to levy and collect assessments through lien foreclosure proceedings or an action at law, shall not be subject to alternative dispute resolution or procedures. The requirements of this Section 10.10 shall not apply under circumstances where a party is entitled to a temporary restraining order or preliminary injunction in order to avoid irreparable harm.

(a) Civil Code Section 1354(b). Prior to instituting civil action solely for declaratory relief or injunctive relief, or for declaratory relief or injunctive relief in conjunction with a claim for monetary damages not in excess of five thousand dollars ($5,000), concerning an Association Dispute, the parties shall endeavor to first submit their dispute to a form of alternative dispute, as provided in Civil Code Section 1354(b) or any successor provision.

(b) Claims over $,,5,000. Any civil claim concerning an Association Dispute in excess of five thousand dollars ($5,000) shall first be submitted to mediation or arbitration pursuant to subsections (c) and (d) hereof. Any party subject to such a dispute may initiate this process by serving on another party to the dispute a Request for Resolution. The Request for Resolution shall include (1) a brief description of the dispute between the parties, (2) a request for mediation, non-binding arbitration or binding arbitration and (3) a notice that the party receiving the Request for Resolution is required to respond thereto within 30 days of receipt or it will be deemed rejected. Service of the Request for Resolution shall be in the same manner as prescribed for service in a small claims action as provided in Section 116.340 of the Code of Civil Procedure or any successor provision. Parties receiving a Request for Resolution shall have 30 days following service of the Request for Resolution to accept or reject mediation or arbitration. If not accepted with the thirty (30) day period by a party that party shall be deemed to hav. e rejected such proposed mediation or arbitration. If the proposed arbitration or mediation is accepted by the party upon whom the Request for Resolution is served, the meditation or arbitration shall be completed within ninety (90) days of receipt of the acceptance by the party initiating the Request for Resolution, unless extended by written stipulation signed by both parties. The costs of the mediation or arbitration shall be borne by the parties.

(c) Mediation. Mediation shall consist of an informal meeting or meetings which all parties to the dispute may attend. In the event any party shall fail without cause to attend and participate in any such mediation that party shall conclusively be deemed to have waived that party's right to have the dispute resolved through mediation. The Board may maintain a list of mediators who are acceptable to the Board and who have indicated their willingness to serve as mediator and whose fees for such services have been established by the Board. The parties to a dispute may agree upon any mediator, including a mediator obtained from a list maintained by the Board or provided by any recognized mediation service. If the parties to a dispute are able to agree upon a mediator, the agreed-upon person shall be notified and, upon such person's acceptance, shall be the mediator for that proceeding. If the parties are unable to agree upon a mediator within ten (10) days from the responding party's acceptance of the Request for Resolution by mediation, then the parties shall ask the the American Arbitration Association or another mutually agreeable organization to choose the mediator. A mediator may be, but shall not be required to be, a Member of the Association.

(i) The mediator shall establish the format of the mediation proceedings and the procedures to be followed. The mediator shall have the duty to assess the rights and obligations of the parties involved in the dispute and shall be entitled to interview the parties, agents or representatives of the parties or any other person when the mediator deems such an interview appropriate or necessary. The mediator shall also be entitled to request and receive copies of correspondence, records, minutes, and other such evidentiary documentation to assist in resolving the dispute. The mediator shall use his or her best efforts to effect a settlement of the dispute that is in the best interest of all parties involved.

(ii) The mediator may provide the parties in the dispute with a recommendation as to resolution of the dispute, and the parties shall be notified of any such recommendation. The costs of mediation shall be borne equally by the parties.

(d) Arbitration. The Request for Resolution shall specify whether the proposed arbitration is binding or non-binding. Any dispute subject to this Section 10.10 which is submitted to arbitration shall be arbitrated in accordance with the applicable rules of the American Arbitration Association or in accordance with such other arbitration procedure as may be mutually agreed upon the parties.

(i) Selection of Arbitrator. Unless the parties shall mutually agree to have three (3) arbitrators, there shall be one arbitrator. All arbitrators shall be either attorneys or retired judges. If the parties are unable to agree upon an arbitrator within ten (10) days from the responding party's acceptance of the Request for Resolution by arbitration, an arbitrator shall be selected as provided in the applicable rules of the American Arbitration Association or in accordance with such other procedure as may be mutually agreed upon by the parties.

(ii) Governing Rules and Procedures. The arbitration hearing have take place in Butte County, California, at the time and place selected by the arbitrator(s). The arbitrator(s) shall have absolute discretion to determine whether or not and to what extent the parties shall be permitted to pursue discovery procedures. Arbitration shall be commenced by the personal delivery or mailing by registered mail of a written demand for arbitration by one party upon the other. At the arbitration hearing, any relevant evidence may be presented including oral testimony of any material witnesses or documentary evidence, and the formal rules of evidence shall not govern. Evidence may be admitted or not admitted at the sole discretion of the arbitrator(s).

(iii) Costs. The costs of arbitration shall be advanced equally by the parties, and the prevailing party shall be entitled to and shall receive as part of the award reimbursement for all costs, including attorneys' fees, advanced or incurred in connection with the arbitration proceeding; provided, however, that the arbitrator shall have the right to allocate costs between the parties in such proportions as the arbitrator(s) shall deem appropriate.

(iv) Decision. In the event there are three (3) arbitrators, the decision of any two (2) arbitrators shall constitute the decision of the arbitrators. The award of the arbitrator(s) shall be accompanied by a written statement of the basis for such judgment. In the event the parties have elected binding arbitration, judgment on the award may be entered by the Superior Court in the County of Butte and the decision shall be conclusive and binding upon all the parties.

 

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Last modified: November 25, 2001