Calimesa City Council
October 6, 2025

Regular Meeting of the Calimesa City Council
Monday, October 6, 2025

CALL TO ORDER
ROLL CALL: MAYOR MOLINA, MAYOR PRO TEM CERVANTEZ, COUNCIL MEMBER CUNDIEFF, COUNCIL MEMBER GARCIA AND COUNCIL MEMBER MANLY.

STAFF: CITY MANAGER KOLBOW, CITY ATTORNEY FLOWER, CITY CLERK

GERDES, FINANCE DIRECTOR REID, PLANING DIRECTOR LUCIA, PUBLIC

WORKS DIRECTOR SHAKIR, CITY ENGINEER THORNTON, FIRE DEPUTY CHIEF SHAW AND SHERIFF CAPTAIN NORTHRUP.

PLEDGE OF ALLEGIANCE

COMMUNICATIONS FROM THE PUBLIC
Pursuant to the Brown Act, this is the opportunity for members of the public to directly address the Council on any item within the Council’s subject matter jurisdiction. Please note that this is also the time in which members of the public may address the Council on any item on the Consent Calendar. This is not the time for City Council discussion of non-agenda items. After receiving public comments, Council Members, or staff, after being recognized by the Mayor, may briefly respond to statements made by the public or questions posed by the public. In addition, Council Members may ask questions for clarification or make a referral to staff for factual information to be reported back to the Council at a later meeting.

APPROVAL OF THE AGENDA, CONSENT CALENDAR AND WAIVER OF FULL READING OF ORDINANCES This is the time for the City Council to notify the public of any changes to the agenda; such as removal of an agenda item, rearrangement of the agenda, postponement of an agenda item or continuance of an item to a future meeting. This is also the time for the City Council to remove items from the Consent Calendar for individual consideration. Waiver of full reading of ordinances does not take policy action or approve or disapprove any ordinances on the agenda, it simply means that the entire text of the ordinance will not be read.

RECOMMENDATION: Move to approve the agenda, consent calendar and waive full reading of ordinances.

Motion________________________ Second_______________________ Vote___________________________ Regular Meeting of the Calimesa City Council
Meeting Agenda
Monday, October 6, 2025 – 6:00 p.m.

Norton Younglove Multipurpose Senior Center
908 Park Avenue, Calimesa, CA 92320
Linda Molina, Mayor  Jeff Cervantez, Mayor Pro Tem
Eric Cundieff, Council Member  Edgar Garcia, Council Member  John Manly, Council Member Will Kolbow, City Manager  Steven Flower, City Attorney The Calimesa City Council will be conducting this meeting in the Norton Younglove Senior Center. Members of the public may attend this meeting in person at the Norton Younglove Senior Center, 908 Park Avenue, Calimesa, CA 92320, or the public may view the City Council meetings live at https://www.youtube.com/@calimesacity900/live beginning at 6:00 p.m.

Submission of Public Comments: Public comment will be allowed by completing a speaker slip and providing it to the City Clerk at the meeting. Please observe a time limit of three (3) minutes when giving your presentation. When called upon, please step forward to the microphone, state your name for the record, whom you represent and any statement you wish to make. Please be advised that you may not defer your three (3) minutes to another speaker.

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Clerk’s Office, (909) 795-9801. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Any public writings distributed by the City to at least a majority of the Council Members regarding any item on this regular meeting agenda will be made available at the public counter at City Hall located at 908 Park Avenue, Calimesa, CA 92320.

Regular Meeting of the Calimesa City Council
Monday, October 6, 2025

CONSENT CALENDAR (Items 1 – 10)
The following items on the Consent Calendar are routine and customary items and are enacted by a single motion, with the exception of items previously removed during “Approval of the Agenda” for individual consideration. Any items removed shall be individually considered immediately after taking action on the Consent Calendar.

1. APPROVAL OF CITY COUNCIL ACTION MINUTES.
a) City Council action minutes of the September 15, 2025 regular meeting b) City Council action minutes of the September 25, 2025 special meeting.

2. RECEIVE AND FILE CITY COMMISSION & BOARD MINUTES.
a) Parks, Trails & Community Services Comm action minutes of the July 9, 2025 special meeting.

3. APPROVAL OF WARRANT REGISTERS.
a) Check Register Report with a total of $1,318,358.15 (Check Nos. 44166-44305) b) September 25, 2025 Payroll of $134,257.56
October 1, 2025 Council Payroll of $3,886.75.

4. TREASURER’S REPORT FOR THE MONTH ENDED JULY 31, 2025.

RECOMMENDATION: That the City Council receive and file the Investment Report for the month ended July 31, 2025.

5. 2ND READING BY TITLE ONLY AND ADOPTION OF ORDINANCE NO. 417, AN ORDINANCE OF THE CITY OF CALIMESA, CALIFORNIA, AMENDING MUNICIPAL CODE CHAPTER 3.15 (SUPPLIES, SERVICES AND EQUIPMENT PURCHASE PROCEDURE).

RECOMMENDATION: That the City Council approve 2nd reading, by title only and adopt Ordinance No. 417, AN ORDINANCE OF THE CITY OF CALIMESA, CALIFORNIA, AMENDING MUNICIPAL CODE CHAPTER 3.15 (SUPPLIES, SERVICES AND EQUIPMENT PURCHASE PROCEDURE).

6. REPLACEMENT OF HVAC SYSTEM IN SENIOR CENTER.

RECOMMENDATION: That the City Council authorize Burgeson’s Heating A/C & Electrical, Inc to perform the replacement of one of the Senior Center HVAC systems and approve payment for the work in the amount of $13,385.

7. PURCHASE OF TWO NEW AUTOMATIC DOORS WITH ADA PUSH PLATES.

RECOMMENDATION: That the City Council approve the purchase and install of two new restroom doors in the Senior Center with ADA push plates in the amount of $13,922.88 from Vortex Industries, LLC.

8. FINAL TRACT MAP 37204 – HERITAGE OAKS
RECOMMENDATION: That the City Council:
1) Adopt Resolution 2025-53 approving Final Map 37204;
2) Authorize the City Clerk to sign the statement on the map that acknowledges the City Council’s approval;
3) Authorize the Mayor and City Clerk to execute a Subdivision Improvement Agreement and accept sureties; and
4) Authorize City Staff to execute the Declaration of Covenants, Conditions, Restrictions and Reservation of Easements.

9. FIRST AMENDMENT TO AGREEMENT FOR MANAGED INFORMATION TECHNOLOGY SERVICES WITH ACTIVE IT SOLUTIONS.

RECOMMENDATION: That the City Council approve the First Amendment to the Agreement for Managed Information Technology Services between the City of Calimesa and Active IT Solutions.

Regular Meeting of the Calimesa City Council
Monday, October 6, 2025

10. APPROVE SUPPLEMENTAL AGREEMENT WITH RIVERSIDE COUNTY DEPARTMENT OF

HOUSING AND WORKFORCE SOLUTIONS (HWS) FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECT NO. 5.CM.06-25, CALIMESA LIBRARY ADA IMPROVEMENT PROJECT, PROJECT NO 2024-06.

RECOMMENDATION: That the City Council approve the Supplemental Agreement with Riverside County Department of Housing and Workforce Solutions (HWS) for Community Development Block Grant (CDBG) Project No. 5.CM.06-25 for the amount of $26,644 for the construction of the Calimesa Library Access Improvement Project, Project No. 2024-06

SHERIFF CAPTAIN REPORT

FIRE CHIEF REPORT

PUBLIC HEARING

11. PUBLIC HEARING: 2ND READING OF ORDINANCE NO 416 - ADOPTING BY REFERENCE PART 7 OF TITLE 24 OF THE CALIFORNIA CODE OF REGULATIONS, COMPRISING THE CALIFORNIA WILDLAND-URBAN INTERFACE CODE, 2025 EDITION (PART 7, TITLE 24,

CALIFORNIA CODE OF REGULATIONS), INCLUDING APPENDICES A, B, C, F, G AND H AMENDS THE INTERNATIONAL WILDLAND-URBAN INTERFACE CODE , 2025 EDITION; PART 9 OF TITLE 24 OF THE CALIFORNIA CODE OF REGULATIONS, COMPRISING THE CALIFORNIA FIRE CODE, 2025 EDITION (PART 9, TITLE 24, CALIFORNIA CODE OF REGULATIONS), INCLUDING APPENDIX CHAPTER 4 AND APPENDICES B, BB, C, CC, D, E, F, G, H, I, K, N, O, P AND Q AND AMENDING TITLE 15 OF THE CALIMESA MUNICIPAL CODE REGARDING THE SAME.

RECOMMENDATION: That the City Council: Open the Public Hearing, take public testimony and approve 2nd reading by title only and adopt, ORDINANCE NO. 416 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CALIMESA ADOPTING BY REFERENCE PART 7 OF TITLE 24 OF THE

CALIFORNIA CODE OF REGULATIONS, COMPRISING THE CALIFORNIA WILDLAND-URBAN INTERFACE CODE, 2025 EDITION (PART 7, TITLE 24, CALIFORNIA CODE OF REGULATIONS), INCLUDING APPENDICES A, B, C, F, G AND H AMENDS THE INTERNATIONAL WILDLANDURBAN INTERFACE CODE , 2025 EDITION; PART 9 OF TITLE 24 OF THE CALIFORNIA CODE OF REGULATIONS, COMPRISING THE CALIFORNIA FIRE CODE, 2025 EDITION (PART 9, TITLE 24, CALIFORNIA CODE OF REGULATIONS), INCLUDING APPENDIX CHAPTER 4 AND APPENDICES B, BB, C, CC, D, E, F, G, H, I, K, N, O, P AND Q AND AMENDING TITLE 15 OF THE CALIMESA MUNICIPAL CODE REGARDING THE SAME.

BUSINESS ITEMS

12. APPROVAL OF CITY OF CALIMESA COMMUNITY GRANT GUIDELINES AND APPLICATION.

RECOMMENDATION: That the City Council approve of the Calimesa Community Grant Guidelines and Community Grant Application.

MAYOR & COUNCIL MEMBER REPORTING OF COUNTY & REGIONAL MEETINGS/CONFERENCES This is the time for general comments, announcements, reports on meetings attended at public expense as required by AB 1234, requests of staff, and other issues of concern to Council Members may be presented briefly at this time. The Council may not legally take action on any item presented at this time other than to direct staff to investigate a complaint or place an item on a future agenda unless (1) by a majority vote, the Council determines that an emergency situation exists, as defined by Government Code § 54956.5 or (2) by a four-fifths vote, the Council determines that there is a need for immediate action and the need for action arose subsequent to the agenda being posted as required by Government Code § 54954.2(b).

CITY MANAGER COMMENTS & REPORTS

Regular Meeting of the Calimesa City Council
Monday, October 6, 2025

CLOSED SESSION ITEMS
A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property: 1055 Calimesa Blvd., Calimesa, CA City/Agency Negotiators: Will Kolbow, City Manager.

Negotiating Parties: Bank of America National TR & SVGS Assn.

Under Negotiations: Price and Terms for acquisition of property by City

ADJOURNMENT
Adjourn to the Regular Meeting of the City Council on Monday, October 20, 2025 at 6:00 p.m.

City Council Meeting
Agenda Report
Agenda Item No. 1
SUBJECT: APPROVAL OF CITY COUNCIL MEETING MINUTES
MEETING DATE: October 6, 2025
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council approve the action minutes as presented for the Regular City Council Meeting of September 15, 2025 and the Special City Council Meeting of September 25, 2025.

ATTACHMENTS:

Attachment A: City Council action minutes of September 15, 2025 regular meeting Attachment B: City Council action minutes of September 25, 2025 special meeting.

City Council Meeting
Agenda Report
Agenda Item No. 2
SUBJECT: APPROVAL OF COMMISSION MEETING MINUTES
MEETING DATE: October 6, 2025
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council approve the action minutes as presented for the Parks, Trails & Community Services Commission special meeting of July 9, 2025.

ATTACHMENTS:

Attachment A: Parks, Trails & Community Services Commission action minutes of July 9, 2025.

City Council Meeting
Agenda Report
Agenda Item No. 3
SUBJECT: APPROVAL OF WARRANT REGISTER
MEETING DATE: October 6, 2025
PREPARED BY: Celeste Reid, Finance Director
RECOMMENDATION: That the City Council approve the Warrant Register as presented.

SUMMARY: The attached Check Register Report for City Council’s approval is as follows:
a) Check Register Report with a total of $1,318,358.15 (Check Nos.44166-44305) b) September 25, 2025 Payroll of $134,257.56
October 1, 2025 Council Payroll of $3,886.75

City Council Meeting
Agenda Report
Agenda Item No. 4
SUBJECT: TREASURER’S REPORT FOR THE MONTH ENDED
July 31, 2025
MEETING DATE: October 6, 2025
PREPARED BY: Celeste Reid, Finance Director and Treasurer RECOMMENDATION: That the City Council receive and file the Investment Report for the month ended July 31, 2025.

BACKGROUND: Pursuant to Council Resolution No. 2024-60 approved on November 4, 2024, the monthly Treasurer’s Report is hereby submitted. The report complies with the aforementioned Council resolution, as well as Government Code Section 53646.

DISCUSSION: The investment report provides information in accordance with the Investment Policy approved by Council Resolution No. 2024-60. Information includes the reporting of realized and unrealized gain and loss activity for the respective month of reporting. Generally, unrealized gains and losses are the day-to-day increases or decreases in an assets value. Until an investment is sold for cash, the gains or losses remain unrealized. Realized gains and losses reflect the results of selling of investments and are the difference between the cost basis and the market value as of the transaction date of sale. The City will continually have reportable changes of unrealized gain and loss activity between cost basis and market value as underlying investments are subject to the variability of market conditions. Staff evaluates investment options on an ongoing basis to ensure reasonable access to funds and reserves are set aside to maintain availability of cash position for general operations and capital assets.

Significant transactions during the month include transfers of $500,000 on July 3, 2025, $1,000,000 on July 10, 2025, and $1,000,000 on July 18,2025 from the to the LAIF investment account to the General Fund account.

FISCAL IMPACT Revenue of $12,537 of interest and dividend earnings was recognized for Checking Sweep Account, CFD and Successor Agency funds.

ATTACHMENTS:

Attachment A: Treasurer’s Report for the month ended July 31, 2025

City Council Meeting
Agenda Report
Agenda Item No. 5
SUBJECT: 2

ND READING BY TITLE ONLY AND ADOPTION OF ORDINANCE
NO. 417, AN ORDINANCE OF THE CITY OF CALIMESA,
CALIFORNIA, AMENDING MUNICIPAL CODE CHAPTER 3.15
(SUPPLIES, SERVICES AND EQUIPMENT PURCHASE
PROCEDURE).

MEETING DATE: October 6, 2025
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council approve 2nd reading, by title only and adopt Ordinance No. 417, AN ORDINANCE OF THE CITY OF CALIMESA, CALIFORNIA, AMENDING MUNICIPAL CODE CHAPTER 3.15 (SUPPLIES, SERVICES AND EQUIPMENT PURCHASE PROCEDURE).

ATTACHMENTS:

Attachment A: Ordinance No. 417.

ORDINANCE NO. 417

AN ORDINANCE OF THE CITY OF CALIMESA, CALIFORNIA, AMENDING MUNICIPAL CODE CHAPTER 3.15 (SUPPLIES, SERVICES AND

EQUIPMENT PURCHASE PROCEDURE)
, APPLYING THE RESIDENTIAL INFILL PRIORITY AREA OVERLAY ZO

THE CITY COUNCIL OF THE CITY OF CALIMESA DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Chapter 3.15 (SUPPLIES, SERVICES AND EQUIPMENT PURCHASE PROCEDURE) of Title 3 (REVENUE AND FINANCE) of the Calimesa Municipal Code is hereby amended and restated as follows, with the amendments indicated by text in bold with the additions underlined and the additions in strikethrough:
“Chapter 3.15

SUPPLIES, SERVICES AND EQUIPMENT PURCHASE PROCEDURE

3.15.010 Adoption of purchasing system.

The provisions of this chapter are adopted in accordance with the provisions of California Government Code Sections 54201 through 54205 regarding the purchase of supplies, equipment and services. In order to establish efficient procedures for the purchase of supplies, services and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function, and to assure the quality of purchases, a purchasing system is hereby adopted for the purchase of all city supplies, services and equipment.

3.15.020 - Centralized Purchasing Division.

There is hereby created a centralized Purchasing Division in which is vested authority for the purchase of supplies, equipment, and services. The Purchasing Agent shall administer and be responsible for the successful performance of all functions of the Purchasing Division. The Purchasing Agent shall purchase supplies, equipment, and services at the lowest possible cost commensurate with quality needed.

3.15.030 - Purchasing Agent.

The City Manager is designated as purchasing officer pursuant to Section

2.05.060(i) of this municipal code and shall assign an employee to act as a Purchasing Agent. The Purchasing Agent shall be the head, and have general supervision of the Purchasing Division, and shall act as the purchasing agent for the City. The Purchasing Agent shall have authority to:

A. Purchase or contract for supplies, equipment, and services required by any using department or agency in accordance with the provision of Section 54201 et seq. of the California Government Code, and with purchasing procedures prescribed by this chapter, such administrative regulations as the Purchasing Agent shall adopt for the internal management and operation of the Purchasing Division and such other rules and regulations as shall be prescribed by the Council or City Manager;
Attachment 5A

B. Negotiate and recommend execution of contracts for the purchase of supplies, equipment, and services;
C. Act to procure for the City the needed quality in supplies, equipment, and services at least expense to the City;
D. Discourage collusion in bidding and induce full competition on all purchases;
E. Prepare and recommend to the City Manager rules governing the purchase of supplies, equipment and services for the City; F. Prepare and recommend to the Council revisions and amendments to the purchasing rules;
G. Keep informed of current developments in the field of purchasing, prices, market conditions and new products;
H. Prescribe and maintain processes as are reasonably necessary to the operation of this chapter and other rules and regulations; I. Supervise the inspection of all supplies, equipment, and services purchased to insure conformance with specifications; and J. Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment which cannot be used by any agency, and which have become unsuitable for City use.

K. Recommend local purchases whenever feasible, reasonable, and in the City’s best interest.

3.15.040 - Reserved.

Reserved.

3.15.050 - Specifications.

As needed, the Purchasing Agent, in conjunction with the using department or agency, shall develop standard specifications for repetitively procured items and services. Every specification shall be prepared to assure the broadest possible bidder participation consistent with the needs of the using department or agency.

Alternate specification provisions for any particular bid invitation may be established by the Purchasing Agent.

3.15.060 - Formal contract procedure.

Except as otherwise specifically provided in this section or in other sections of this chapter, purchases of supplies, equipment and services of an estimated value exceeding $50,000 shall be by formal sealed competitive bids. Awards for such expenditures shall be made by the Council to the lowest responsible bidder in accordance with the following provisions:

A. Lowest Responsible Bidder. "Lowest responsible bidder," as used in this chapter, shall mean that bidder who best responds in price, quality, service, fitness, or capacity to the particular requirements of the City. Price alone shall not be the determining factor but shall be considered along with the other factors, including, but not limited to, the ability of the bidder to deliver, availability of parts or service, prior experience and other factors relating to the particular needs of the City for the supplies, equipment or services to be purchased.

B. Notices Inviting Bids. The Purchasing Agent shall be responsible for posting notification of solicitation of bids, which shall include a general description of the articles to be purchased, state where bid specifications may be secured and the time and place for opening of the bids. The notice shall specify the factors referred to in subsection A of this section, which factors will be given special consideration in determining the lowest responsible bid for the supplies or equipment to be purchased. Notices shall be posted on the City's website and other public posting locations may be utilized as determined by the Purchasing Agent.

C. Bidders' Security. When deemed necessary by the Purchasing Agent, bidders' security may be prescribed in the notices inviting bids. Bidders shall be entitled to the return of bid securities; provided, however, a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within the time designated in the bid specifications. The Council, on the refusal or failure of the successful bidder to execute the contract, may award the contract to the next lowest responsible bidder. If the Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the City to the contract price differential between the lowest bid and the second lowest bid and the surplus, if any, shall be returned to the lowest bidder.

D. Performance Bonds. The Purchasing Agent shall have authority to require a performance bond before entering a contract in an amount reasonably necessary to protect the best interests of the City.

E. Bid Opening Procedure. Bids shall be submitted electronically through the electronic bidding system used by the City's Purchasing Division, unless the Purchasing Agent determines otherwise. Bids shall be made publicly available upon opening.

F. Confidentiality of Bids. All bids received pursuant to the provisions of this chapter shall not be revealed directly or indirectly to any other bidder until the bidding process is completed and all submitted bids have been verified. A tabulation of all bids received shall be available for public inspection during regular business hours after the bids have been verified.

G. Rejection of Bids. The Purchasing Agent may reject any and all bids presented and re-advertise for bids.

H. Award of Contracts. Any resulting contract shall be awarded by the Council to the lowest responsible bidder as defined in subsection A of this section.

3.15.070 - Informal contract procedure.

Subject to other applicable provisions of this chapter:

A. Value of Purchases. General purchases of supplies, equipment and services of $1,000 or less, shall be purchased directly by the departments under established administrative rules and authority. Purchases valued above $1,000 and up to $50,000 may be made in the open market pursuant to the procedure prescribed in this section without observing the procedures prescribed in Section

3.15.060 of this chapter. For purchases of vehicles and large equipment valued above $1,000 and up to $100,000 may be made in the open market pursuant to the procedure prescribed in this section without observing the procedures prescribed in Section 3.15.060 of this chapter.

B. Approval of Purchases. Any purchase above $1,000 and up to $10,000 shall be made by the Purchasing Agent and require the prior approval of the City Manager. Any purchases above $25,000 must be approved by the City Council.

C. Minimum Number of Bids. Open market purchases above $1,000 and up to $50,000 shall, whenever possible, be based on at least three bids, and shall be awarded to the lowest responsible bidder. For purchases of vehicles and large equipment, open market purchases up to $100,000 shall, whenever possible, be based on at least three bids, and shall be awarded to the lowest responsible bidder

3.15.080 - Purchase orders.

A. Purchase Orders. Purchases of supplies, equipment, and services shall be made by numbered purchase order and consistent with written purchasing policy that includes specifics as to when the use of purchase orders are applicable.

B. Change Orders. Any change order for an approved purchase or contract shall be documented by a purchase order addendum. The City Manager may authorize cumulative increases up to $25,000 as long as sufficient funding is available.

3.15.090 - Encumbrance of funds.

Except in cases of emergency, the Purchasing Agent shall not issue any purchase order for supplies, equipment or services unless there exists an unencumbered appropriation in the fund account against which such purchase is to be charged.

3.15.100 - Inspection and testing.

The Purchasing Agent shall inspect supplies and equipment delivered and contractual services performed to determine their conformance with the specifications set forth in the order or contract. The Purchasing Agent shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications.

3.15.110 - Emergency procurement.

For purposes of this section, an emergency shall be deemed to exist only when a condition exists that presents an immediate threat to health, safety or improved property and when a local emergency or disaster has been proclaimed.

A. When a local emergency is proclaimed, the City's normal purchasing procedures may be superseded by the following provisions to deal with the exigent circumstances.

B. Solicited bids that are non-responsive shall count towards the minimum number of bids required when there is a declared emergency or disaster in the City.

C. When an emergency or disaster is proclaimed, the City's normal requirements for sealed formal bids will be suspended to allow for telephonic or other electronic bids from potential vendors or suppliers, in lieu of written and/or sealed bids. In addition, the requirement for public posting may be waived. Also, if the purchase exceeds $10,000, those expenditures will be presented to the Council for ratification within 60 days.

D. If the emergency requires the immediate procurement of supplies, equipment or services and the amount is above $1,000 and does not exceed $10,000, the Purchasing Agent will obtain the EOC (Emergency Operations Center) Director's approval prior to making a purchase.

E. If during the proclaimed emergency, the Purchasing Agent is not available, the EOC Director may order the needed commodity or service from the nearest available source. As soon as possible thereafter, the EOC Director shall submit to the Purchasing Agent a notation that the commodity or service has been ordered on an emergency basis from the vendor designated and the Purchasing Agent shall prepare an after-the-fact purchase order.

F. If the emergency requires the immediate procurement of supplies, equipment or services needed to preserve life and/or property, the purchase may be made without following bidding procedures. However, written justification enumerating one or more of the following rationale, must be included with the purchase request: emergency protective measure, scarce commodity, emergency consulting services, emergency road clearance, other emergency requirement, and/or lack of bids. The use of a pre-existing contract may be utilized under these circumstances.

G. During a declared emergency or disaster, the Purchasing Agent has the authority to rescind a contract for non-performance within 24 hours when a contractor or vendor, once awarded a contract, is unable to perform under the terms of the contract and the resulting delay or non-performance present an immediate threat to life, safety or improved property.

H. All purchases made under emergency or disaster conditions shall require separate invoicing from routine (non-disaster related) purchases. All invoices shall state the goods, services or equipment provided and shall specify where the purchases were delivered and/or used.

3.15.120 - Professional services.

Contracts for services of specially trained and professional persons shall be exempt from bidding. Such contracts may be procured by the Director of the Department (or designee) that requires the services, in accordance with established administrative rules and procedures. If the amount exceeds $10,000 the City Manager's approval is required. All contracts exceeding $25,000 must be approved by the Council.

3.15.130 - Waivers.

At its discretion, the Council may, at any time by majority vote and without amending this chapter, waive purchasing procedures or alter these proceedings to fit a specific purchase when such waiver is not in violation of California State law. Whenever special market conditions require it, the City Manager may waive the open market requirements for replenishment of supplies, materials, and equipment, or for services, where the best interest of the City is served, provided that such waiver is ratified by the Council at a meeting within 30 days of the purchase.

3.15.140 - Alternative Purchasing Procedures.

In lieu of the purchasing and bid procedures set forth in this article, the following alternative purchasing procedures may be used in the discretion of the Purchasing Agent for the purchase of supplies, equipment or services, A. Where purchases are to be made in concert with or through agreements executed by other agencies, formal bid requirements as outlined in Section 3.15.060 of this chapter may be waived by the City Council.

B. Purchases of supplies, equipment or services where competitive bid procedures have already been utilized, such as purchases from federal, state or county governments, including, state of California agencies, counties, cities, joint power agencies, special districts, and nonprofit agencies whose main purpose is to assist cities or other public entities, and the supplies or equipment are supplied to the City at the same or better price, as was obtained through the competitive bid procedures of that entity.

C. When the requesting department determines in writing, after conducting a good faith review of the available sources, that there is only one source for the required equipment, supplies or services or that a sole source procurement is necessary to ensure compatibility with existing City equipment. The department requesting sole source procurement shall provide written evidence to support a sole source determination. Such evidence shall be approved by the Purchasing Agent.

The City Manager may require that negotiations be conducted as to price, delivery and terms. The City Manager may also require the submission of cost or pricing data in connection with an award under this section.

3.15.150 - Unauthorized purchases and contracts.

It shall be unlawful for an officer, employee, or agent of the City to order the purchase of supplies, equipment, or services, or to make any contract in violation of this chapter, and any order, purchase or contract made contrary to the provisions of

this chapter shall not be binding on the City, and the City shall not be obligated thereunder.

3.15.160 - Prohibition against splitting purchases.

Purchase of supplies, equipment or services shall not be divided or staged for the purpose of circumventing the bidding or approval requirements of this chapter.

3.15.170 - Disposition of City obsolete and surplus property.

The City Manager shall have authority to sell as surplus materials and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange the same for, or trade in the same one, new supplies, materials and equipment.

A. The sale of surplus supplies and equipment shall be made pursuant to rules prescribed by the city manager, and only after authorization from the City Council as to any items of an estimated value of $10,000 or more.

B. Surplus supplies and equipment may be sold to the public if so prescribed by the city manager and/or the city council. City officials and employees, and their immediate families, however, shall be ineligible to purchase such surplus items.

3.15.180 - Reimbursement Agreements; Contracts Paid by Third Parties.

The City Manager is authorized to enter into the following agreements:

A. Reimbursement agreements, whereby a third party (typically a developer or project applicant) pays for services relating to processing a development application, or for services relating to conditions of approval for a project.

B. Professional services agreements that are paid solely by third parties pursuant to a reimbursement agreement.

Section 2. The City Clerk shall certify the adoption of this Ordinance and shall cause it to be published in the manner required by law.”
INTRODUCED AND APPROVED UPON FIRST READING this 15th day of September 2025 upon the following vote:

AYES: Cervantez, Cundieff, Garcia, Manly and Molina
NOES: None
ABSENT: None
ABSTAIN: None

PASSED, APPROVED AND ADOPTED UPON SECOND READING this 6 th day of
October 2025, upon the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________________

LINDA MOLINA, MAYOR
ATTEST:
_________________________________

DARLENE GERDES, CITY CLERK
APPROVED AS TO FORM:
__________________________________
STEVEN L. FLOWER, CITY ATTORNEY

City Council Meeting
Agenda Report
Agenda Item No. 6
SUBJECT: REPLACEMENT OF HVAC SYSTEM IN SENIOR CENTER
MEETING DATE: October 6,2025
PREPARED BY: Robert Hagan, Public Works Maintenance Lead Mari Shakir, Public Works Director
RECOMMENDATION: That the City Council authorize Burgeson’s Heating A/C & Electrical, Inc to perform the replacement of one of the Senior Center HVAC systems and approve payment for the work in the amount of $13,385.

DISCUSSION: There are 3 HVAC systems that operate the Senior Center. One of these systems is no longer functioning and is unable to cool its respective part of the building. The system was installed in 2009 and has surpassed its expected service life, resulting in decreased performance, increased maintenance requirements, and reduced energy efficiency. Given these ongoing issues, staff is requesting a replacement.

Due to time constraints and urgency of the matter, staff was only able to obtain two quotes. The quote provided by Burgeson’s, who already performs the HVAC maintenance for the City was the lower of the two in the amount of $13,385.

At the moment, the other two systems are still functioning, but will likely need to be replaced in the near future.

FISCAL IMPACT:

The replacement of the HVAC system will be funded through the Community Services Facilities budget, at a total cost of $13,385.00.

ATTACHMENTS:

Attachment A: Burgeson’s Heating A/C Electrical quote
Attachment B: RASP HVAC quote

Attachment 6A

ESTIMATE
Services qty unit price amount
2 TON AC PRO M-SERIES HEAT PUMP 1.0 $6,734.21 $6,734.21 NEW 24,000 BTU AC PRO M-SERIES HEAT PUMP INCLUDING:
- RESIN COMPOSITE PAD
- SERVICE DISCONNECT BOX
- HURRICANE STRAPS
- TIME DELAY 250V FUSES
- ELECTRICAL SUPPLY WHIP
*** INCLUDES ALL NECESSARY PARTS AND MATERIALS NEEDED FOR PROPER INSTALLATION *** 10 YEAR MANUFACTURERS PARTS AND COMPRESSOR WARRANTY
1 YEAR LABOR WARRANTY WITH RASP HVAC
2 TON AC PRO M-SERIES AIR HANDLER 1.0 $7,142.84 $7,142.84 24,000 BTU AC PRO M-SERIES AIR HANDLER INCLUDING:
- CS2 SECONDARY SAFETY SWITCH
- CONDENSATION LINES
- DUCT TRANSITIONS
- INSULATION
- COPPER FITTINGS
- FILTER
- SECONDARY DRAIN PAN
- DIGITAL THERMOSTAT
*** INCLUDES ANY NECESSARY PARTS OR MATERIALS NEEDED FOR PROPER INSTALLATION *** 10 YEAR MANUFACTURERS PARTS WARRANTY
1 YEAR LABOR WARRANTY WITH RASP HVAC
Services subtotal: $13,877.05

RASP HVAC
[email protected]

CONTACT US
25189 Ridgemoor Rd
Menifee, CA 92586
(951) 836-2912
[email protected]
ESTIMATE #1417
TOTAL $13,877.05
RASP HVAC 1106230 http://WWW.RASPHVAC.COM 1 of 2
Attachment 6B

Subtotal $13,877.05
Total $13,877.05
RASP HVAC 1106230 http://WWW.RASPHVAC.COM 2 of 2

City Council Meeting
Agenda Report
Agenda Item No. 7
SUBJECT: PURCHASE OF TWO NEW AUTOMATIC DOORS WITH ADA

PUSH PLATES
MEETING DATE: October 6, 2025
PREPARED BY: Robert Hagan, Public Works Maintenance Lead Mari Shakir, Public Works Director
RECOMMENDATION: That the City Council approve the purchase and install of two new restroom doors in the Senior Center with ADA push plates in the amount of $13,922.88 from Vortex Industries, LLC.

DISCUSSION: The proposed project involves the installation of two new doors and the construction of powered door operators at the Senior Center. This upgrade is part of the ongoing effort to improve accessibility, safety, and functionality of the facility for all patrons, particularly seniors and individuals with mobility impairments. Currently, the existing entrances, although ADA compliant, pose challenges for individuals using wheelchairs, walkers, or other mobility aids. The installation of a new accessible entrance will address these concerns by ensuring that the facility provides equal access to all members of the community, and in compliance with federal accessibility regulations.

The project scope includes structural modifications, electrical work for automated door openers, and signage to ensure smooth entry and exit to the restrooms.

Staff recommends moving forward with the installation as it represents a meaningful and necessary investment in making the Senior Center safer, more accessible, and inclusive for all users.

FISCAL IMPACT: The cost of the proposed improvements will be covered by remaining funds available in the Senior Center Renovation Project budget.

ATTACHMENTS:

Attachment A: Vortex proposal

PROPOSAL
1-800-698-6783
To Site Date Sep 18, 2025
The City of Calimesa The City of Calimesa
908 Park Avenue 908 Park Avenue
Calimesa, CA 92320 Calimesa, CA 92320
ATTN: Kyle Coney
Ref # Q-76404
Customer PO #
Phone 909-732-7828 Job Phone 909-732-7828 Fax
In accordance with the terms and conditions stated online at Customer Terms and Conditions, we propose to provide the following doors and / or repair work (hereinafter referred to as the 'Product") on the following terms.
[[SSIGN_INPUT ID=1]]      Customer to list days or hours Vortex cannot do the work:      [[SSIGN_INPUT ID=2]] Payment Terms: % on deposit. Balance due upon Completion. 35.00 This offer is good for 30 days. SIGNED COPY MUST BE RETURNED TO OUR OFFICE WITH DEPOSIT. Offer may be revoked by Vortex at any time prior to acceptance. Hidden or unanticipated damages and/or services not included in proposal. Proposal also does not include costs of prevailing wages, if required, unless specifically identified herein.

NOTICE TO PROPERTY OWNER: If bills are not paid in full for the labor, services, equipment, or materials furnished or to be furnished, a mechanic's lien leading to the loss, through court foreclosure proceedings, of all or part of your property being so improved may be placed against the property even though you have paid your contractor in full. You may wish to protect yourself against this consequence by (1) requiring your contractor to furnish a signed release by the person or firm giving you this notice before making payment to your contractor or (2) any other method or device which is appropriate under the circumstances.

LICENSING: Any questions concerning a contractor may be referred to the state-specific Contractors License Board. All Vortex License details can be found at www.vortexdoors.com/wp-content/uploads/2025/04/State-Licensing-Information.pdf IMPORTANT: For additional terms, including limitations of warranty and limitations of liability which are part of this proposal and will constitute terms of your contract with Vortex, see www.vortexdoors.com/customer-terms-conditions. Customer is added to our General Liability policy as Additional Insured only when required by written contract with Customer.

Accepted The City of Calimesa ("Customer") VORTEX INDUSTRIES, LLC. ("VORTEX") By [[SSIGN_INPUT ID=3]] By Jose Bedoya
Date [[SSIGN_INPUT ID=4]] Date Sep 18, 2025
We propose to furnish, deliver, and install the following subject to the terms noted below:

Two(2) new Hollow Metal Door for your existing opening complete with the following benefits:

Fabricated from 18 Gauge Cold Rolled Steel
Exceptional Strength and Noise-Absorption Characteristics Crush Strength at 45 P.S.I.

Full Length Positive Mechanical Interlock with no weld marks Full Honeycomb Core to provide rigidity and impact resistance Baked on Gray Primer for optimum paint adhesion
New Hinges
This includes securing new hinges in place, alignment of the door in the opening for proper clearance, lubrication of all moving parts, and our Quality Assurance & Safety Check to insure proper operation of the complete door system.

We propose to furnish, deliver, and install the following subject to the terms noted below.

Two (2) new Low Energy/Power Operated Door Closers for your existing door as needed. This includes the following benefits:

Meets stringent requirements of ANSI 156.10, ANSI 156.19, and UL325 Ideal operator for ADA-compliant entrance applications
Meets requirements of normal pedestrian door in the building up to 48” wide Door control switches mounted on operator ON/OFF/HOLD OPEN Multi gear, easy opening action is ultra-quiet and is perfect for noise-sensitive areas Narrow or fine headers blend with door and framing
State of the art system and is environmentally friendly Built in electrified hardware circuit for seamless security/access control integration Designed to close and latch door in case of power loss
Electrical hook-up into existing dedicated power source (provided by others) This includes mounting the operator above the door opening, adjustments to the door to meet job site conditions, lubrication of all points of friction, and our exclusive quality assurance and safety check.

Please note this bid INCLUDES the following:

Attachment 7A

PROPOSAL
1-800-698-6783
To Site Date Sep 18, 2025
The City of Calimesa The City of Calimesa
908 Park Avenue 908 Park Avenue
Calimesa, CA 92320 Calimesa, CA 92320
ATTN: Kyle Coney
Ref # Q-76404
Customer PO #
Phone 909-732-7828 Job Phone 909-732-7828 Fax
In accordance with the terms and conditions stated online at Customer Terms and Conditions, we propose to provide the following doors and / or repair work (hereinafter referred to as the 'Product") on the following terms.
[[SSIGN_INPUT ID=1]]      Customer to list days or hours Vortex cannot do the work:      [[SSIGN_INPUT ID=2]] Payment Terms: % on deposit. Balance due upon Completion. 35.00 This offer is good for 30 days. SIGNED COPY MUST BE RETURNED TO OUR OFFICE WITH DEPOSIT. Offer may be revoked by Vortex at any time prior to acceptance. Hidden or unanticipated damages and/or services not included in proposal. Proposal also does not include costs of prevailing wages, if required, unless specifically identified herein.

NOTICE TO PROPERTY OWNER: If bills are not paid in full for the labor, services, equipment, or materials furnished or to be furnished, a mechanic's lien leading to the loss, through court foreclosure proceedings, of all or part of your property being so improved may be placed against the property even though you have paid your contractor in full. You may wish to protect yourself against this consequence by (1) requiring your contractor to furnish a signed release by the person or firm giving you this notice before making payment to your contractor or (2) any other method or device which is appropriate under the circumstances.

LICENSING: Any questions concerning a contractor may be referred to the state-specific Contractors License Board. All Vortex License details can be found at www.vortexdoors.com/wp-content/uploads/2025/04/State-Licensing-Information.pdf IMPORTANT: For additional terms, including limitations of warranty and limitations of liability which are part of this proposal and will constitute terms of your contract with Vortex, see www.vortexdoors.com/customer-terms-conditions. Customer is added to our General Liability policy as Additional Insured only when required by written contract with Customer.

Accepted The City of Calimesa ("Customer") VORTEX INDUSTRIES, LLC. ("VORTEX") By [[SSIGN_INPUT ID=3]] By Jose Bedoya
Date [[SSIGN_INPUT ID=4]] Date Sep 18, 2025

1. 2.

3. 1.

2. 3.

4. 5.

Vortex Exclusive three (3) year Limited Warranty.

Work to be scheduled during regular business hours (M-F 7:30a-4:30p) unless otherwise stated.

Removal and disposal of damaged material.

Please note this bid DOES NOT INCLUDE the following:

Any hidden conditions or damage.

Any new electrical needed for new units.

Any finish paint.

Prevailing Wage Rates if required are not included unless specified.

Any item not called out above.

FOR THE TOTAL NET SUM OF…………………..$13,922.88

City Council Meeting
Agenda Report
Agenda Item No. 8
SUBJECT: FINAL TRACT MAP 37204 – HERITAGE OAKS
MEETING DATE: October 6th, 2025
PREPARED BY: Will Kolbow, City Manager
Michael Thornton, City Engineer
RECOMMENDATION: Staff recommends that City Council:
1) Adopt Resolution 2025-53 approving Final Map 37204;
2) Authorize the City Clerk to sign the statement on the map that acknowledges the City Council’s approval;
3) Authorize the Mayor and City Clerk to execute a Subdivision Improvement Agreement and accept sureties; and
4) Authorize City Staff to execute the Declaration of Covenants, Conditions, Restrictions and Reservation of Easements.

BACKGROUND: On July 16, 2007, City council approved Tentative Tract Map (TTM) 17351 (Revised to 37204), a 54 acres subdivision into 45 residential units, open space and other improvements in the Heritage Oaks Specific Plan, with conditions of approval. The area is located on the City’s northeast limits at the terminus of County Line Road. The project will include the construction of internal streets, County Line Road to its ultimate condition width along the property frontage, a debris basin to capture and reduce stream flows and a water quality basin to capture and treat in-tract runoff.

Final Tract Map No. 37204 has been checked and found to comply with the Subdivision Map Act, is in substantial compliance with the approved Tentative Tract Map and complies with the project conditions of approval for said Map. The Subdivider has submitted a Subdivision Improvement Agreement (SIA) with bonds for all grading, public improvements, and survey monumentation. The Declarations of Covenants, Conditions, Restrictions and Reservation of Easements (CC&R’s) have been approved by the City Attorney’s Office and are in compliance with the project’s conditions of approval.

ATTACHMENTS:

Attachment A: Final Tract Map No. 37204
Attachment B: Resolution 2025-53 (Approving Final Map 37204) Attachment C: Subdivision Improvement Agreement with Improvement Bonds Attachment D: Declaration of Covenants, Conditions, and Restrictions and Grant Easements

TRACT NO. 37204
ST
EPHEN H. HACKE
T
T
Attachment 8A

TRACT NO. 37204

TRACT NO. 37204
5 22,220 SF LOT A 81,692 SF

TRACT NO. 37204

TRACT NO. 37204

TRACT NO. 37204

TRACT NO. 37204

RESOLUTION NO. 2025-53

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CALIMESA, CALIFORNIA, APPROVING FINAL TRACT MAP
37204, A 54 ACRE SUBDIVISION OF 45 RESIDENTIAL LOTS,

OPENSPACE AND ASSOCIATED PUBLIC AND PRIVATE
AREAS.

WHEREAS, on July 16, 2007 City Council approved Resolution No. 2007-70 for Tentative Tract Map No. 17351 (Revised to 37204) for the Heritage Oak Specific Plan; and
WHEREAS, TTM No. 17351 (Revised to 37204) would subdivide 54 acres of property for the purpose of residential and open space development; and WHEREAS, the project includes 45 residential units, open space and other improvements; and
WHEREAS, Final Tract Map 37204 has been submitted for approval, plan checked and found to comply with the Subdivision Map Act; and
WHEREAS, the Subdivider has submitted a Subdivision Improvement Agreement, Faithful Performance Bond and Payment Bond to guarantee construction of Public Improvements and payment to the contractors for the work; and WHEREAS, the Subdivider has submitted Survey Monumentation Bond to ensure that all required monuments are placed following map recordation.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIMESA HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:

1. The facts and findings in this resolution are true and correct.

2. The conditions set forth in Resolution 2007-70 for TTM No 17351 (Revised to 37204) are incorporated herein by reference.

3. Final Tract Map 37204, a 54-acre subdivision creating 45 single family residential lots, open space and associated public and private areas, in the City of Calimesa, is hereby approved.

4. The Subdivision Improvement Agreement, Faithful Performance Bond, Payment Bond and Monumentation Bond are accepted.

PASSED, APPROVED, and ADOPTED this 6
th day of October 2025.
_____________________________________

LINDA MOLINA, MAYOR
ATTEST:
___________________________

DARLENE GERDES, CITY CLERK
Attachment 8B

Attachment 8C

7333-129014\1632423.2
08/19/25
RECORDING REQUESTED BY:

WHEN RECORDED, MAIL TO:

JACKSON TIDUS (HKW)
2030 Main Street, Suite 1500
Irvine, CA 92614
(Space Above for Recorder’s Use)

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS

AND RESERVATION OF EASEMENTS
FOR

HERITAGE OAKS
NOTE: CERTAIN DISPUTES ARISING UNDER THIS DECLARATION, INCLUDING

DISPUTES CONCERNING THE DESIGN OR CONSTRUCTION OF THE COMMUNITY,

SHALL BE SUBMITTED TO BINDING ARBITRATION OR JUDICIAL REFERENCE,

FORMS OF ALTERNATIVE DISPUTE RESOLUTION, IN ACCORDANCE WITH SECTION 12.4
If this document contains any restriction based on age, race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, familial status, marital status, disability, veteran or military status, genetic information, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry, that restriction violates state and federal fair housing laws and is void, and may be removed pursuant to Section 12956.2 of the Government Code by submitting a “Restrictive Covenant Modification” form, together with a copy of the attached document with the unlawful provision redacted to the county recorder’s office. The “Restrictive Covenants Modification” form can be obtained from the county recorder’s office and may be available on its internet website. The form may also be available from the party that provided you with this document. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status.

Attachment 8D

TABLE OF CONTENTS

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS

AND RESERVATION OF EASEMENTS
FOR

HERITAGE OAKS
Page
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ARTICLE I DEFINITIONS AND INTERPRETATION ..................................................... 2

1.1 Definitions ......................................................................................................... 2

1.2 Interpretation ................................................................................................... 11

1.3 Land Classifications in Phase 1 ...................................................................... 12 ARTICLE II MAINTENANCE COVENANTS AND USE RESTRICTIONS ................... 12

2.1 Repair and Maintenance .................................................................................. 12

2.2 Single-Family Dwelling .................................................................................. 18

2.3 Water Conservation Measures ........................................................................ 18

2.4 Further Subdivision ......................................................................................... 19

2.5 Leasing and Rental .......................................................................................... 19

2.6 Resale .............................................................................................................. 20

2.7 Business and Commercial Activities .............................................................. 20

2.8 Nuisances ........................................................................................................ 21

2.9 Signs ................................................................................................................ 23

2.10 Parking and Vehicular Restrictions ................................................................. 23

2.11 Animal Regulations ......................................................................................... 25

2.12 Antenna and Satellite Dish Restrictions .......................................................... 26

2.13 Trash ................................................................................................................ 28

2.14 Owner-Installed Improvements ....................................................................... 28

2.15 Mechanics’ Liens ............................................................................................ 29

2.16 Drainage .......................................................................................................... 29

2.17 Water Supply System ...................................................................................... 30

2.18 View Obstructions ........................................................................................... 30

2.19 Solar Energy Systems ..................................................................................... 31

TABLE OF CONTENTS
(continued)
Page
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2.20 Rights of Disabled ........................................................................................... 31

2.21 Temporary Buildings ...................................................................................... 31

2.22 Prohibited Residential Uses ............................................................................ 31

2.23 Common Property ........................................................................................... 31

2.24 Mineral Exploration and Extraction ................................................................ 31

2.25 Easements ........................................................................................................ 31 ARTICLE III DISCLOSURES .............................................................................................. 32

3.1 No Representations or Warranties .................................................................. 32

3.2 Specific Plan.................................................................................................... 32

3.3 Equestrian Zoned Lots .................................................................................... 32

3.4 Public Trail Areas, equestrian staging/parking area and Open Space ............ 32

3.5 Electric Power Lines, Wireless Communications Facilities, and Human Health .............................................................................................................. 33

3.6 Soils Conditions .............................................................................................. 33

3.7 Fire Dangers; California Wildfires ................................................................. 35

3.8 Water Hazards ................................................................................................. 35

3.9 Easements for City and Water District............................................................ 36

3.10 Reclaimed Water ............................................................................................. 36

3.11 Oak Tree Preservation ..................................................................................... 36

3.12 Developmental Standards................................................................................ 36

3.13 Surrounding Uses ............................................................................................ 37

3.14 Major Thoroughfares ...................................................................................... 37

3.15 Rural Area ....................................................................................................... 37

3.16 Wind ................................................................................................................ 37

3.17 Special Tax Assessment .................................................................................. 37

3.18 Property Lines ................................................................................................. 37

3.19 Utility Improvements ...................................................................................... 38

3.20 Mold ................................................................................................................ 38

3.21 Change in Plans ............................................................................................... 39

3.22 No Enhanced Protection Agreement ............................................................... 39

TABLE OF CONTENTS
(continued)
Page
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3.23 Additional Provisions; Future Enforceability ................................................. 39 ARTICLE IV THE ASSOCIATION ..................................................................................... 39

4.1 General Duties And Powers ............................................................................ 39

4.2 Specific Duties And Powers ........................................................................... 39

4.3 Standard of Care, Non-Liability ...................................................................... 46

4.4 Membership .................................................................................................... 47

4.5 Voting Rights .................................................................................................. 49 ARTICLE V DESIGN REVIEW COMMITTEE ................................................................. 50

5.1 Members Of Committee .................................................................................. 50

5.2 Powers and Duties ........................................................................................... 50

5.3 Review of Plans and Specifications ................................................................ 51

5.4 Meetings and Actions of the Design Review Committee ............................... 54

5.5 No Waiver of Future Approvals ...................................................................... 54

5.6 Compensation of Members ............................................................................. 54

5.7 Inspection of Work .......................................................................................... 54

5.8 Variances ......................................................................................................... 55

5.9 Pre-Approvals ................................................................................................. 56

5.10 Appeals ............................................................................................................ 56 ARTICLE VI PROPERTY EASEMENTS AND RIGHTS ................................................... 56

6.1 Easements ........................................................................................................ 56

6.2 Additional Easements...................................................................................... 58

6.3 Delegation of Use ............................................................................................ 58

6.4 Right of Entry .................................................................................................. 58 ARTICLE VII ASSOCIATION MAINTENANCE FUNDS AND ASSESSMENTS ........... 59

7.1 Personal Obligation to Pay Assessments ........................................................ 59

7.2 Association Maintenance Fund Accounts ....................................................... 59

7.3 Purpose of Assessments .................................................................................. 59

7.4 Waiver of Use ................................................................................................. 60

7.5 Limits on Annual Assessment Increases ......................................................... 60

7.6 Annual Assessments ....................................................................................... 61

TABLE OF CONTENTS
(continued)
Page
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7.7 Capital Improvement Assessments ................................................................. 62 ARTICLE VIII INSURANCE .................................................................................................. 62

8.1 Duty to Obtain Insurance; Types .................................................................... 62

8.2 Waiver of Claim Against Association............................................................. 64

8.3 Right and Duty of Owners to Insure ............................................................... 64

8.4 Notice of Expiration Requirements ................................................................. 64

8.5 Trustee For Policies......................................................................................... 64

8.6 Actions as Trustee ........................................................................................... 65

8.7 Annual Insurance Review ............................................................................... 65

8.8 Required Waiver ............................................................................................. 65 ARTICLE IX DESTRUCTION OF IMPROVEMENTS ...................................................... 66

9.1 Restoration of the Community ........................................................................ 66

9.2 Damage to Residences-Reconstruction ........................................................... 66

9.3 Interior Damage .............................................................................................. 66

9.4 Notice to Owners and First Mortgagees ......................................................... 67 ARTICLE X EMINENT DOMAIN ..................................................................................... 67

10.1 Condemnation of Common Area .................................................................... 67

10.2 Condemnation of Lots ..................................................................................... 67

10.3 Notice to Owners and First Mortgagees ......................................................... 67 ARTICLE XI RIGHTS OF MORTGAGEES ........................................................................ 67

11.1 General Protections ......................................................................................... 67

11.2 Additional Rights ............................................................................................ 68 ARTICLE XII ENFORCEMENT AND DISPUTE RESOLUTION ...................................... 69

12.1 Enforcement of Governing Documents .......................................................... 69

12.2 Delinquent Assessments ................................................................................. 71

12.3 Enforcement of Bonded Obligations ............................................................... 75

12.4 Disputes with Declarant Parties ...................................................................... 76

12.5 Covenant Regarding Proceeds ........................................................................ 83

12.6 Approval of Amendments ............................................................................... 83 ARTICLE XIII DURATION AND AMENDMENT ............................................................... 83

TABLE OF CONTENTS
(continued)
Page
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13.1 Duration........................................................................................................... 83

13.2 Termination and Amendment ......................................................................... 83 ARTICLE XIV GENERAL PROVISIONS ............................................................................. 86

14.1 Mergers or Consolidations .............................................................................. 86

14.2 No Public Right or Dedication ........................................................................ 86

14.3 Notices............................................................................................................. 86

14.4 Constructive Notice and Acceptance .............................................................. 87 ARTICLE XV DECLARANT’S RIGHTS AND RESERVATIONS ..................................... 87

15.1 Construction Rights ......................................................................................... 87

15.2 Sales and Marketing Rights ............................................................................ 87

15.3 Creating Additional Easements ....................................................................... 88

15.4 Architectural Rights ........................................................................................ 88

15.5 Declarant Exemption ....................................................................................... 88

15.6 Assignment of Rights ...................................................................................... 88

15.7 Amendment ..................................................................................................... 88

15.8 Power of Attorney ........................................................................................... 88

15.9 Cooperation and Participation ......................................................................... 89

15.10 Declarant Approval of Actions ....................................................................... 90

15.11 Marketing Name.............................................................................................. 91 ARTICLE XVI ANNEXATION OF ADDITIONAL PROPERTY ......................................... 91

16.1 Additions By Declarant ................................................................................... 91

16.2 Other Additions ............................................................................................... 91

16.3 Rights and Obligations-Added Territory ........................................................ 91

16.4 Notice of Addition........................................................................................... 91

16.5 De-Annexation and Amendment..................................................................... 92

EXHIBIT A LEGAL DESCRIPTION OF ANNEXABLE TERRITORY

EXHIBIT B ARTICLES OF INCORPORATION OF THE ASSOCIATION

EXHIBIT C BYLAWS OF THE ASSOCIATION

TABLE OF CONTENTS
(continued)
Page
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EXHIBIT D APPROXIMATE LOCATIONS OF ASSOCIATION MAINTENANCE AREAS IN PHASE 1

EXHIBIT E APPROXIMATE LOCATIONS OF FUEL MODIFICATION ZONES IN

THE COMMUNITY

EXHIBIT F APPROXIMATE LOCATIONS OF PUBLIC TRAIL AREAS IN THE

COMMUNITY

-1- 7333-129014\1632423.2
08/19/25

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS

AND RESERVATION OF EASEMENTS
FOR

HERITAGE OAKS

THIS DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS is made by Far West Industries, a California corporation.

The capitalized terms used in the Preamble below are defined in Article 1.

P R E A M B L E:

A. Declarant is the owner of real property (“Phase 1”) located in the City of Calimesa, Riverside County, California, described as follows:

Lots to , inclusive, of Tract Map No. 37204, as shown on a subdivision map, Recorded in Book _____, at Pages ___ to ___, inclusive, of Maps, in the Office of the Riverside County Recorder.

B. Declarant intends to create a “planned development,” which is also a “common interest development,” as such terms are defined in the CID Act, and a “subdivision” as defined in Section 11000 of the California Business and Professions Code. Declarant intends to impose mutually beneficial restrictions under a general plan for subdividing, maintaining, improving and selling the Lots in the Community for the benefit of all the Lots pursuant to the CID Act.

The general plan of development will include forming an owners association under the California Nonprofit Mutual Benefit Corporations Law to which will be assigned the powers of (1) owning, maintaining and administering the Common Property, (2) administering and enforcing the Governing Documents, and (3) collecting and disbursing the Assessments and charges hereinafter created. Declarant will cause such corporation to be formed to exercise such powers, as required by the CID Act. The Members of the Association will be the Owners in the Community, as further provided in Article 4 herein.

C. The Community is to be held, conveyed, encumbered, leased, used and improved subject to covenants, conditions, restrictions and easements in this Declaration, all of which are in furtherance of a plan for subdividing, maintaining, improving and selling the Lots in the Community. All provisions of this Declaration are imposed as equitable servitudes on the Community. All covenants, conditions, restrictions and easements in this Declaration shall run with and burden the Community, and be binding on and for the benefit of all of the Community and all Persons acquiring any interest in the Community.

D. The Community is also subject to Conditions of Approval which were imposed by the City. Each Owner and the Association shall comply with the applicable provisions of the Conditions of Approval.

-2- 7333-129014\1632423.2
08/19/25

ARTICLE I

DEFINITIONS AND INTERPRETATION

1.1 DEFINITIONS. Unless otherwise expressly provided, the following words and phrases when used in this Declaration have the following meanings.

1.1.1 Annexable Territory. Annexable Territory means the real property described in Exhibit A which may be made subject to this Declaration pursuant to Article 16.

Any references in this Declaration to Annexable Territory are references to the Annexable Territory as a whole and to portions thereof.

1.1.2 Annual Assessment. Annual Assessment means a charge against the Owners and their Lots representing their share of the Common Expenses. The Annual Assessment is a regular assessment levied in accordance with California Civil Code Section 5600, et seq.

1.1.3 Articles of Incorporation. Articles of Incorporation mean the Articles of Incorporation of the Association currently in effect. A copy of the initial filed Articles of Incorporation is attached as Exhibit B.

1.1.4 Assessment. Assessment means any Annual Assessment, Capital Improvement Assessment, Reconstruction Assessment and Special Assessment.

1.1.5 Association. Association means Heritage Oaks Community Association, a California nonprofit corporation (formed pursuant to the California Nonprofit Mutual Benefit Corporations Law or successor statutes), and its successors-in-interest. The Association is an “association” as defined in California Civil Code Section 4080, or its successor statutes.

1.1.6 Association Maintenance Area. Association Maintenance Area means those Improvements in residential Lots or other real property which are not owned in fee by the Association but which are designated for maintenance by the Association. (a) Generally. The Association Maintenance Areas in a Phase may include one or more of the following:
(i) The structural and support components of all
Community Walls (including pilasters, caissons, footing, cap, masonry, wood, gates, gate hardware, tubular steel and wrought iron), and all exterior surfaces thereof, except that the Owner of a Lot enclosed by any Community Wall shall maintain the Residence-facing surface of vinyl, wood and masonry portions;
(ii) Public Trail Areas in public right-of-ways; and
(iii) Fuel modification zones in public right-of-ways.
(b) Phasing of Association Maintenance Areas. Association Maintenance Areas in Phase 1 (if any) are described in Section 1.3.3 below. Association

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Maintenance Areas in subsequent Phases may include some or all of the items listed in subparagraph (a) above as applicable to the Lots in such Phase; provided that Declarant may designate additional Association Maintenance Areas in a Notice of Addition or Supplemental Declaration.

1.1.7 Association Maintenance Funds. Association Maintenance Funds means the accounts created for Association receipts and disbursements pursuant to Article 7.

1.1.8 Board or Board of Directors. Board or Board of Directors means the Association’s Board of Directors.

1.1.9 BMPs. BMPs means “Best Management Practices,” which are methods, protocols and procedures for the control, reduction and prevention of storm water and pollutant runoff from the Community into storm drains and waterways. BMPs are imposed on the Community through the requirements of the WQMP (defined below) and the Conditions of Approval. BMPs may include landscape maintenance and runoff prevention requirements for the Association and Owners, and other practices and procedures that must be followed by the Association and by all occupants of the Community.

1.1.10 Budget. Budget means a written, itemized estimate of the Association’s income and Common Expenses prepared pursuant to the Bylaws.

1.1.11 Bylaws. Bylaws mean the Bylaws of the Association as currently in effect. A copy of the initial form of Bylaws is attached as Exhibit C.

1.1.12 Capital Improvement Assessment. Capital Improvement Assessment means a charge against the Owners and their Lots representing their share of the Association’s costs incurred in installing, constructing, upgrading or modifying major or capital Improvements on the Common Property, and which costs are not regular scheduled maintenance costs or reserves in the adopted Budget. Capital Improvement Assessments shall be levied in the same proportion as Annual Assessments. Capital Improvement Assessments are special assessments imposed in accordance with the requirements of California Civil Code Section 5605(b).

1.1.13 CID Act. CID Act means the Davis-Stirling Common Interest Development Act and its successor provisions. References in the Governing Documents to the Davis-Stirling Common Interest Development Act or the CID Act shall be deemed to refer to Division 4, Part 5 of the California Civil Code at Sections 4000 to 6150, or to subsequently enacted replacement statutes.

1.1.14 City. City means the City of Calimesa, California, and its various departments, divisions, employees and representatives.

1.1.15 Close of Escrow. Close of Escrow means the date on which a deed is Recorded conveying a Lot pursuant to a transaction requiring the issuance of a Public Report by the DRE.

1.1.16 Common Area. Common Area means real or personal property owned in fee by the Association and therefore made subject to the restrictions on Common Area

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established in this Declaration. Any references in this Declaration to Common Area are references to the Common Area as a whole and to portions thereof. The Common Area is “common area” as defined in California Civil Code Section 4095. Additional Common Area may be annexed to the Community pursuant to Article 16. (a) Phasing of Common Area. Some or all of the Common Area in the Community will be conveyed to the Association in subsequent Phases; Section 1.3.2 below and any Supplemental Declaration Recorded by Declarant constitute the designation of the Common Area to be made a part of Phase 1. Other Common Area in the Community will be conveyed to the Association on a Phase-by-Phase basis in accordance with Declarant’s development plan. In accordance with Article 16, Declarant may designate additional Common Area Improvements not listed above in one or more Phases by describing it in the Governing Documents, consistent with DRE Regulations, the Budget, and applicable law.

1.1.17 Common Expenses. Common Expenses means those expenses for which the Association is responsible under this Declaration. Common Expenses include the actual and estimated costs of and reserves for maintaining, managing and operating the Common Property (including amounts incurred for maintenance imposed on the Association by this Declaration), including:
(a) Common Property and Improvements thereon, including Community Walls, landscaping, street lighting, multi-purpose trails (including trail surfaces and adjacent fencing), equestrian staging/parking area, open space (including the oak tree mitigation areas and/or habitat mitigation areas), fuel modification zones, storm drainage Improvements and facilities (including water quality basins) and other services benefiting the Common Property; (b) The cost of all utilities (including electric, sewer, and water) and mechanical and electrical equipment serving the Common Property; (c) The costs and fees attributable to managing and administering the Association, compensating the Manager, accountants, attorneys and employees, all insurance covering the Community and the Directors, officers and agents of the Association, and bonding the members of the Board;
(d) The cost to repair damage to public utility Improvements if caused by the Association during installation, maintenance or repair of private utility Improvements;
(e) Unpaid Special Assessments, Reconstruction Assessments and Capital Improvement Assessments;
(f) Taxes paid by the Association;
(g) The cost of regularly scheduled reserve studies;
(h) Amounts paid by the Association for discharge of any lien or encumbrance levied against the Community;

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(i) Costs to provide required Beneficial Ownership Information (as defined in Section 4.2.18) about the Association to the United States Department of the Treasury Financial Crimes Enforcement Network or its successor, and otherwise fully comply with the “Reporting Rule” of Title 31 Code of Federal Regulations Section 1010.380; and (j) All other expenses incurred by the Association for the Community, for the common benefit of the Owners.

1.1.18 Common Property. Common Property means the Common Area, the Association Maintenance Areas and the Improvements constructed thereon. Any references to the Common Property are references to the Common Property as a whole and to portions thereof.

1.1.19 Community. Community means (a) Phase 1, and (b) each Phase described in a Notice of Addition. The Community is a “common interest development” and a “planned development” as defined in the CID Act. Any references in this Declaration to the Community are references to the Community as a whole and to portions thereof.

1.1.20 Community Wall. Community Wall means any wall, sound wall, retaining wall, entry monument or fence in the Community that is maintained entirely or partially by the Association. Party Walls and other fences or walls that are maintained entirely by the Owners are not Community Walls. The obligation to maintain the Community Walls in a particular Phase will not arise until the commencement of Annual Assessments in that Phase or as otherwise directed in this Declaration, or in a Notice of Addition or Supplemental Declaration.

Declarant may designate additional Community Walls in a Notice of Addition or Supplemental Declaration. Community Walls in the Community in general (a) are constructed on or along a tract boundary; or (b) separate a Lot from Common Area or public property; or (c) are constructed entirely within Common Area; or (d) are designated as a Community Wall by Declarant in this Declaration, or in a Notice of Addition or Supplemental Declaration.

1.1.21 Conditions of Approval. Conditions of Approval means the Conditions of Approval for Tentative Tract No. 37204, Resolution No. 2007-70, approved by the City on August 20, 2007.

1.1.22 County. County means Riverside County, California, and its various departments, divisions, employees and representatives.

1.1.23 Declarant. Declarant means Far West Industries, a California corporation, its successors and any Person to which it shall have assigned any of its rights by an express written assignment. As used in this Section, “successor” means a Person who acquires Declarant or substantially all of Declarant’s assets by sale, merger, reverse merger, consolidation, sale of stock or assets, operation of law or otherwise. Declarant shall determine in its sole discretion the time, place and manner in which it discharges its obligations and exercises the rights reserved to it under this Declaration. Declarant is a “builder” as described in California Civil Code Section 6000.

1.1.24 Declaration. Declaration means this instrument as currently in effect.

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1.1.25 Design Guidelines. Design Guidelines mean the rules or guidelines setting forth procedures and standards for submission of plans for Design Review Committee approval.

1.1.26 Design Review Committee or Committee. Design Review Committee or Committee means the Design Review Committee created in accordance with Article 5.

1.1.27 DRE. DRE means the California Department of Real Estate and any department or agency of the California state government which succeeds to the DRE’s functions.

1.1.28 Family. Family means natural individuals, related or not, who live as a single household in a Residence.

1.1.29 Fannie Mae. Fannie Mae means the Federal National Mortgage Association, a government-sponsored private corporation established pursuant to Title VIII of the Housing and Urban Development Act of 1968 and its successors.

1.1.30 FHA. FHA means the Federal Housing Administration of the United States Department of Housing and Urban Development and its successors.

1.1.31 FHFA. FHFA means the Federal Housing Finance Agency, established pursuant to the Housing and Economic Recovery Act of 2008.

1.1.32 First Mortgage. First Mortgage means a Mortgage with first priority over other Mortgages on a Lot.

1.1.33 First Mortgagee. First Mortgagee means the Mortgagee of a First Mortgage.

1.1.34 Fiscal Year. Fiscal Year means the fiscal accounting and reporting period of the Association.

1.1.35 Freddie Mac. Freddie Mac means the Federal Home Loan Mortgage Corporation created by Title II of the Emergency Home Finance Act of 1970 and its successors.

1.1.36 Fuel Modification Plan. Fuel Modification Plan means the "Heritage Oaks Residential Development Preliminary Fuel Modification Plan Tentative Tract Map 37204" prepared by Firewise 2000, LLC, dated October 25, 2023, as may be amended or revised, that describes the fuel modification zones and requirements in the Community. The approximate locations of the fuel modification zones in the Community are shown and described on Exhibit E. The Fuel Modification Plan is subject to change and is available from the City.

1.1.37 Ginnie Mae. Ginnie Mae means the Government National Mortgage Association administered by the United States Department of Housing and Urban Development and its successors.

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1.1.38 Governing Documents. Governing Documents means this Declaration, the Articles of Incorporation, Bylaws, Design Guidelines, Rules and Regulations, Supplemental Declarations and Notices of Addition.

1.1.39 Improvement. Improvement means any structure and any appurtenance thereto. The Design Review Committee may identify additional items that are Improvements.

1.1.40 Include, Including. Whether capitalized or not, include and including means “includes without limitation” and “including without limitation,” respectively.

1.1.41 Local Government Agency. Local Government Agency means the City, the County, a public school district, a public water district, any special assessment district, maintenance district or community facilities district and any other local or municipal governmental entity or agency.

1.1.42 Lot. Lot means any residential Lot or parcel of land shown on any Recorded subdivision map or Recorded parcel map of the Community, except the Common Area owned in fee simple by the Association.

1.1.43 Maintain, Maintenance. Whether capitalized or not, maintain and maintenance mean “maintain, repair and replace” and “maintenance, repair and replacement,” respectively; provided however, that maintain or maintenance shall not include repair and replace(ment) where the context or specific language of this Declaration provides another meaning.

1.1.44 Maintenance Guidelines. Maintenance Guidelines means any current written guidelines (including but not limited to any manufacturer or vendor installation and maintenance requirements), setting forth procedures and standards for the maintenance and operation of Common Property or the Lots. Maintenance Guidelines may be provided by Declarant, by the Association, or by any governmental agency. Maintenance Guidelines include any maintenance manual initially prepared at Declarant’s direction and containing recommended frequency of inspections and maintenance activities for components of the Common Property or pertaining to a Residence or Lot. With regard to the oak tree mitigation areas and/or habitat mitigation areas, the Maintenance Guidelines will include by this reference any requirements set forth by the City of Calimesa’s Tree Preservation Ordinance (Chapter 18.80) and the approved Tree Survey Report for Heritage Oaks (see Section 3.11 below), and in the Heritage Oaks Community Residential Project Habitat Mitigation and Monitoring Plan (“HMMP”), including any approved addendums, or other requirements contained in the environmental permits obtained for the Community from the California Department of Fish and Wildlife (“CDFW”), the Regional Water Quality Control Board (“RWQCB”), or as required by the City.

1.1.45 Manager. Manager means the Person retained by the Association to act as a “managing agent” as contemplated by California Civil Code Section 5375, to perform management functions of the Association as limited by the Governing Documents and the terms of the agreement between the Association and the Person. The Manager shall at all times be an entity that is qualified to do business in California, and a professional real property manager

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employed by the Association as an independent contractor or agent rather than as a full-time employee. The Manager shall not be affiliated with any Director of the Association.

1.1.46 Map. Map means the final subdivision map of Tract No. 37204 as described in Preamble Paragraph A above.

1.1.47 Membership. Membership means the voting and other rights, privileges, and duties established in the Governing Documents for members of the Association.

1.1.48 Mortgage. Mortgage means any Recorded document, including a deed of trust, by which a Lot, Lots, or Common Area is hypothecated to secure performance of an obligation.

1.1.49 Mortgagee. Mortgagee means a Person to whom a Mortgage is made, or the assignee of the Mortgagee’s rights under the Mortgage by a recorded instrument. For purposes of this Declaration, the term Mortgagee shall include a beneficiary under a deed of trust.

1.1.50 Mortgagor. Mortgagor means a person who has mortgaged his property. For purposes of this Declaration, the term Mortgagor shall include a trustor under a deed of trust.

1.1.51 Notice and Hearing. Notice and Hearing means written notice and a hearing before the Board as provided in the Bylaws.

1.1.52 Notice of Addition. Notice of Addition means an instrument Recorded pursuant to Article 16 to annex additional real property to the Community.

1.1.53 Official Records. Official Records means the Official Records of the County.

1.1.54 Operating Fund. Operating Fund means that portion of the Common Expenses allocated for the daily operation of the Association.

1.1.55 Owner. Owner means the Person or Persons, including Declarant, holding fee simple interest to a Lot. The term “Owner” includes sellers under executory contracts of sale but excludes Mortgagees. The term “Owner” may be expanded in a Supplemental Declaration to include other Persons.

1.1.56 Party Wall. Party Wall means any wall or fence that is constructed by Declarant to separate adjacent Lots (whether or not constructed on the legal property boundary).

Party Walls are not Community Walls.

1.1.57 Person. Person means a natural individual or any legal entity recognized under California law. When the word “person” is not capitalized, the word refers only to natural persons.

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1.1.58 Phase. Phase means each of the following: (a) Phase 1, (b) all the real property covered by a Notice of Addition for which a Public Report has been issued by the DRE, and (c) real property consisting solely of Common Area as described in a Notice of Addition.

Declarant may otherwise define the term “Phase” in a Notice of Addition or Supplemental Declaration.

1.1.59 Phase 1. Phase 1 means all of the real property described in Paragraph A of the Preamble of this Declaration.

1.1.60 Public Report. Public Report means a Final Subdivision Public Report issued by the DRE.

1.1.61 Reconstruction Assessment. Reconstruction Assessment means a charge levied against the Owners and their Lots representing their share of the Association’s extraordinary expense to repair or reconstruct Common Property as provided in California Civil Code Section 5610. Such charge shall be levied among all Owners and their Lots in the same proportions as Annual Assessments. Reconstruction Assessments are “special assessments” as described in California Civil Code Section 5605(b).

1.1.62 Record or File. Record or File means, with respect to any document, the entry of such document in Official Records.

1.1.63 Reserve Fund. Reserve Fund means that portion of the Common Expenses allocated for the future repair and replacement of, or additions to, structural elements, mechanical equipment and other major components of Association-maintained Improvements.

1.1.64 Residence. Residence means the dwelling unit constructed on a Lot, which is designed and intended for use and occupancy as a residence by a single Family. Subject to applicable laws governing Accessory Dwelling Units or Junior Accessory Dwelling Units as defined in Sections 65852.2 and 65852.22 of the California Government Code, respectively, the term excludes the garage area.

1.1.65 Right to Repair Law. Right to Repair Law means Division 2, Part 2, Title 7 (commencing with Section 895) of the California Civil Code.

1.1.66 Right to Repair Law Claim. Right to Repair Law Claim means any claim brought by one or more Owners or by the Association against one or more Declarant Parties (as defined in Section 12.4) on any design or construction defect matters that are governed by the Right to Repair Law.

1.1.67 Rules and Regulations. Rules and Regulations or “Rules” means the current rules and regulations for the Community.

1.1.68 Special Assessment. Special Assessment means each of the following:
(a) A reasonable monetary penalty imposed against an Owner and the Owner’s Lot in accordance with California Civil Code Section 5725(b), as a disciplinary measure for the failure of an Owner to comply with the Governing Documents (but which may

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not be characterized nor treated in the Governing Documents as an Assessment that may become a lien enforceable by sale of the Lot); or
(b) A monetary charge imposed against an Owner and the Owner’s Lot in accordance with California Civil Code Section 5725(a) to recover costs incurred by the Association (i) to bring an Owner and the Owner’s Lot into compliance with the Governing Documents, or (ii) in the repair of damage to Common Property caused by the Owner or the Owner’s Family, contractors, residents, tenants or guests, all as further described in the CID Act and this Declaration. Provided, however, that in accordance with Section 2792.26(c) of Title 10, Chapter 6, California Code of Regulations, monetary charges described in this Section 1.1.68(b) which are imposed before the last Close of Escrow in the Community or Annexable Territory may not be characterized or treated as a lien enforceable by judicial foreclosure and sale of the Lot; or
(c) A Capital Improvement Assessment; or
(d) A Reconstruction Assessment; or
(e) Any other Assessment or increase imposed pursuant to California Civil Code Section 5610 to pay an extraordinary expense or to make up a shortfall in any Operating Fund or Reserve Fund or for other purposes permissible thereunder.

1.1.69 Supplemental Declaration. Supplemental Declaration means an instrument Recorded by Declarant against all or a portion of the Community in order to supplement, modify, or clarify conditions, covenants, restrictions or easements established under this Declaration. A Supplemental Declaration may affect one or more Lots and/or Common Property. A Supplemental Declaration may also annex additional real property to the coverage of the Declaration so long as it satisfies the requirements of a Notice of Addition in Article 16. A Supplemental Declaration may modify this Declaration only as it applies to the property encumbered by the Supplemental Declaration.

1.1.70 Telecommunications Facilities. Telecommunications Facilities means Improvements constructed in the Community, including cables, conduits, ducts, vaults, connecting hardware, wires, poles, transmitters, towers, antennae and other devices now existing or that may be developed in the future to provide Telecommunication Services to the Community.

1.1.71 Telecommunications Services. Telecommunications Services means the reception, distribution or transmission of video, audio, data, telephony, all related vertical services, and any other similar services now existing or that may be developed in the future.

Declarant may expand this definition in any Supplemental Declaration.

1.1.72 VA. VA means the Department of Veterans Affairs of the United States of America and any department or agency of the United States government which succeeds to the VA’s function of issuing guarantees of notes secured by Mortgages on residential real estate.

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1.1.73 WQMP. WQMP means water quality management plans for the Community that have been approved by the applicable Local Governmental Agency, including the "Stormwater Pollution Prevention Plan for Tract 37204" prepared by Encompass Associates, Inc., dated December 7, 2023, as may be amended or revised. The WQMP is subject to change and is available from the City.

1.2 INTERPRETATION.

1.2.1 General Rules. This Declaration shall be liberally construed to effectuate its purpose of creating a uniform plan for subdividing, maintaining, improving and selling the Community. As used in this Declaration, the singular includes the plural and the plural the singular. The masculine, feminine and neuter each includes the other, unless the context dictates otherwise.

1.2.2 Articles, Sections and Exhibits. The Article and Section headings are inserted for convenience only and may not be considered in resolving questions of interpretation or construction. Unless otherwise indicated, any references in this Declaration to articles, sections or exhibits are to Articles, Sections and Exhibits of this Declaration. Exhibits A, D, E and F attached to this Declaration are incorporated in this Declaration by this reference. The Articles of Incorporation and the Bylaws that are attached as Exhibits B and C are attached for informational purposes only. Either may be amended from time to time without having to amend this Declaration. In such event, the amended version shall supersede the version attached hereto.

The locations and dimensions of any Improvements depicted on the Exhibits attached hereto and to any Notice of Addition are approximate only and the as-built location and dimension of any such Improvements shall control.

1.2.3 Priorities and Inconsistencies. If there are conflicts or inconsistencies between this Declaration and the Articles of Incorporation, Bylaws, or Rules and Regulations, then the provisions of this Declaration shall prevail; however, the conflicting documents shall be construed to be consistent with the Declaration to the extent possible.

1.2.4 Supplemental Declarations. As each Phase of the Community is developed, Declarant may, concerning that Phase, Record one (1) or more Supplemental Declarations, which may (a) supplement this Declaration with such additional covenants, conditions, restrictions, easements and land uses as Declarant may deem appropriate for the real property described therein or affected thereby, and (b) clarify Declarant’s intent as to covenants, conditions, restrictions, easements and land uses in the real property described therein or affected thereby. The provisions of any Supplemental Declaration may impose such additional, different or more restrictive conditions, covenants, restrictions, land uses and limitations as Declarant may deem advisable, taking into account the particular requirements of the real property described therein or affected thereby. If there is a conflict between any Supplemental Declaration and the Declaration, the Supplemental Declaration shall control concerning the real property described in such Supplemental Declaration.

1.2.5 Severability. The provisions of this Declaration are independent and severable. If for any reason, any provision of this Declaration becomes invalid, partially invalid, unenforceable, illegal, null and void, or against public policy, or if for any reason, a court of

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competent jurisdiction determines that any provision of this Declaration is invalid, partially invalid, unenforceable, illegal, null and void, or against public policy, the validity and enforceability of the remaining provisions of this Declaration shall remain in effect to the fullest extent permitted by law.

1.2.6 Statutory and Regulatory References. All references made in the Governing Documents to statutes or regulations are to those statutes or regulations as currently in effect or to subsequently enacted replacement statutes or regulations.

1.3 LAND CLASSIFICATIONS IN PHASE 1. Phase 1 is hereby annexed to and made a part of the Community as a Phase and it is brought under the general plan of this Declaration.

1.3.1 Lots. The Lots in Phase 1 are numbered to , inclusive, all as shown and described on the Map.

1.3.2 Common Area. The Common Area in Phase 1 consists of Lot of the Map, as shown and described on the Map.

1.3.3 Association Maintenance Areas. The Association Maintenance Areas in Phase 1 are shown and described on Exhibit D.

ARTICLE II

MAINTENANCE COVENANTS AND USE RESTRICTIONS
The Community shall be held, used and enjoyed subject to the following restrictions and subject to the exemptions of Declarant set forth in the Governing Documents.

2.1 REPAIR AND MAINTENANCE.

2.1.1 By Owners.
(a) The Lot. Each Owner shall maintain all of the Owner’s Lot (except for any Association Maintenance Area or Improvements that are designated for maintenance by a governmental entity in a Recorded map or in a Governing Document), and the Residence and all other Improvements on the Owner’s Lot in a clean, sanitary and attractive condition and as directed in the Governing Documents and all applicable Maintenance Guidelines. Owner-maintained Improvements shall include the following:
(i) Landscaping. Subject to Section 2.3, all Ownermaintained landscaping that is visible from other Lots or from the Common Area shall be properly maintained in a healthy and flourishing condition, evenly cut, evenly edged, free of bare or brown spots, debris and weeds above the level of the lawn. All trees and shrubs shall be trimmed so they do not impede pedestrian traffic and root-pruned to prevent root damage to sidewalks, driveways and structures.

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(ii) Party Walls. To the extent not inconsistent with the provisions of this Section, the general rules of law regarding Party Walls and liability for property damage due to negligence or willful acts or omissions shall apply. (1) Sharing of Repair and Maintenance. The cost
of reasonable repair and maintenance of a Party Wall shall be shared equally by the Owners of the Lots connected by such Party Wall. However, each Owner shall be solely responsible for repainting the side of any Party Wall facing the Owner’s Lot. (2) Destruction by Fire or Other Casualty.

Unless covered by a blanket insurance policy maintained by the Association under Section 8.1, if a Party Wall is destroyed or damaged by fire or other casualty, any Owner whose Lot is affected thereby may restore it, and the Owner of the other Lot affected thereby shall contribute equally to the cost of restoration thereof, without prejudice. However, such an Owner may call for a larger contribution from the other under any rule of law regarding liability for negligence or willful acts or omissions.
(3) Weatherproofing. Notwithstanding any other
provision of this Article, an Owner who by his negligence or willful act causes a Party Wall to be exposed to the elements, to deteriorate, or to require repair or replacement shall bear the whole cost of furnishing the necessary protection against such elements or the necessary repairs or replacement.
(4) Right to Contribution Runs With Land. The
right of any Owner to contribution from any other Owner under this Article is appurtenant to the land and passes to such Owner’s successors in title.
(iii) Community Walls. The Owner of any Lot that is
partially or completely enclosed by a portion of the Community Wall (whether constructed on the Lot or adjacent to the Lot) is responsible for maintaining only the Residence-facing surface of vinyl, wood and masonry portions of the Community Wall. No Owner may modify or remove any tubular steel or wrought iron portions of any Community Wall, wherever located. (iv) Fuel Modification Zones. Owners of Lots are
responsible for maintaining, in accordance with the Fuel Modification Plan, any portion of the Owner’s Lot that is designated as fuel modification zone. The approximate location and requirements of the fuel modification zones in the Community are shown and described on Exhibit E. As required by the Fuel Modification Plan, the following statements are included:
(1) Owners shall be responsible for all required fuel
treatment and fire protection measures on their Lots.
(2) Each Owner shall financially contribute their fair
share of Association required fuel treatment costs.

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(v) Other Responsibilities.
(1) Each Owner shall regularly inspect the
Improvements on the Lot for wood-destroying pests, and if such pests are found, the Owner shall be responsible for the costs of eradication and future prevention. (2) Each Owner whose Lot utilizes a sewer system
lateral is responsible for the maintenance and repair of the portion of the lateral lying in the boundaries of the Lot.
(vi) Fire Sprinklers and Smoke Detectors. Each Owner shall regularly inspect any fire sprinklers and smoke detectors that are in the interior of the Residence, arrange for regular pressure testing of the fire sprinkler system and conduct regular inspection and testing of the smoke detectors. Keep sources of direct heat away from fire sprinklers.

Owners should report any leaking or malfunctioning fire sprinklers and malfunctioning smoke detectors to the service provider designated in the Maintenance Guidelines, or if none is designated, the Owner must contact a suitable servicer immediately.

2.1.2 By Association. The Association shall maintain everything it is obligated to maintain in a clean, sanitary and attractive condition reasonably consistent with the level and frequency of maintenance reflected in the current adopted Budget; provided, however, that the Association shall at all times at least perform the level and frequency of maintenance specified in the applicable Maintenance Guidelines.
(a) Commencement of Obligations. The Association’s obligation to maintain the Common Property in a Phase composed solely of Common Property shall commence on conveyance of such Common Property to the Association either in fee or by maintenance easement. The Association’s obligation to maintain the Common Property in any Phase that includes Lots commences on the date on which Annual Assessments commence on the Lots in the Phase, unless the terms of the Governing Documents applicable to the real property on which the Common Property is located provide otherwise. Until the Association is responsible for maintaining the Common Property in a particular Phase, Declarant shall maintain such Common Property.
(b) Acceptance of Common Property. The Association must accept ownership of and maintenance responsibility for each portion of Common Property when title and maintenance responsibility are tendered by Declarant, whether in fee simple, by easement or otherwise, and the Association shall execute each deed and any accompanying escrow instructions if requested to do so by Declarant, and it shall execute any bond exonerations when presented if the bonded obligations are satisfied. No Owner shall interfere with the exercise of the foregoing obligations by the Association, or with the rights or obligations of Declarant.
(c) Maintenance Requirements for Certain Improvements.

Unless specifically provided in any Maintenance Guidelines, the Board shall determine, in its sole discretion, the level and frequency of maintenance of the Common Property. The Association shall be responsible for maintaining the Common Property and for all other

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maintenance not provided by the Owners pursuant to Section 2.1.1 above or by a Local Government Agency. Notwithstanding the foregoing, the Association shall not be permitted to materially change or terminate its maintenance of the street lighting, multi-purpose trails, equestrian staging/parking area, open space (including the oak tree mitigation areas and/or habitat mitigation areas), fuel modification zones, and storm drainage Improvements and facilities without the express written approval of the City Manager or their designee. (i) Landscaping. Subject to Section 2.3, the Association shall maintain the Common Property irrigation systems and maintain the Common Property landscaping in a healthy, flourishing, weed-free condition, and turf (if any) shall be kept evenly cut, evenly edged, free of bare or brown spots, debris, and weeds above the level of the grass at all times in accordance with applicable City landscape maintenance standards. Subject to Section 3.11, trees and shrubs shall be trimmed so they do not impede pedestrian traffic along the walkways and shall also be root-pruned to eliminate exposed surface roots and damage to sidewalks, driveways and structures. Automatic irrigation systems shall be properly maintained and other reasonable and adequate landscape maintenance procedures shall be performed.

Landscaping shall be designed with an efficient irrigation system to reduce runoff and overspray and to promote surface infiltration consistent with the WQMP. Landscaping shall also be designed and maintained to minimize the use of fertilizers, herbicides and pesticides. The Association is encouraged to use integrated pest management practices (less toxic pest management) as a first step in maintaining landscaping. Chemical pesticides and fertilizers should be employed as a last resort in managing weeds and other pests. (ii) Community Wall. The Association is responsible for maintaining the Association Maintenance Area portions of the Community Walls described in Section 1.1.6(a)(i), and any other portions designated for Association maintenance in a Notice of Addition or Supplemental Declaration. The Association is also responsible for all portions of the Community Wall that are constructed entirely in the Common Area, or that separate Common Area from public property, or from other real property lying outside the Community. (iii) Ingress and Egress Improvements. The Association
shall maintain all walks, trails and other means of ingress and egress in the Common Area (but not the walks, driveways or other hardscape on the Lots) in accordance with the Governing Documents and applicable Maintenance Guidelines.
(iv) Maintenance of Fuel Modification Zones. The
Association is responsible for maintaining, in accordance with the Fuel Modification Plan requirements, portions of the Common Property identified as fuel modification zones, as shown and described on Exhibit E. As required by the Fuel Modification Plan, the following statements are included:
(1) The Association shall be responsible for all
required fuel treatment and fire protection measures on the Common Property. (2) The Association shall have the authority for
enforcing required fuel treatment measures around all structures and placing restrictions on combustible structures within fuel treatment zones.

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(3) The Association has the authority to enforce a
ban on trash dumping and disposal of green waste in open space areas or fuel treatment zones. (4) All landscaping plans, including additional
structures, must be approved by the Association.
(5) The Association is responsible to the Calimesa
Fire Department for the completion of all required fuel treatment in the Common Property.

Required on-going maintenance will be accomplished on an as needed basis. Should maintenance not be performed in a manner consistent with the approved Fuel Modification Plan, the Calimesa Fire Department shall have the right to abate any treatment zone they deem a threat to the Community or adjoining properties. In doing so, all costs incurred will be billed to the Association. At the discretion of the Calimesa Fire Department Fire Marshal, yearly inspection of treatment areas may be required.
(6) The Association is responsible for providing new
Owners with this recorded Declaration or disclosure statements identifying the responsibilities for maintaining the fuel modification zones within their Lot as defined in the approved Fuel Modification Plan.
(7) The Calimesa Fire Department or its designated
representative shall decide any disputes related to individual Lot landscaping or fuel treatment, with respect to interpretation of the fuel treatment plan. The decision shall be final and binding on the Lot Owner.
(v) Open Space Areas. The Association shall be responsible for maintaining the open space areas including the oak woodland mitigation areas and/or habitat mitigation areas in accordance with the requirements set forth in the Heritage Oaks Community Residential Project Habitat Mitigation and Monitoring Plan (“HMMP”), including any approved addendums, or other requirements contained in the environmental permits obtained for the Community from the California Department of Fish and Wildlife (“CDFW”), the Regional Water Quality Control Board (“RWQCB”), or as required by the City. (vi) Additional Items. The Association shall also be
responsible for maintaining any Improvements that a majority of the voting power of the Association designates for maintenance by the Association. Such Improvements shall be deemed Association Maintenance Areas and subject to provisions of the Governing Documents that are applicable to the Common Property.

2.1.3 Inspections. The Board shall periodically cause a compliance inspection of the Community to be conducted by the Design Review Committee to report any violations thereof. The Board shall also cause condition inspections of the Common Property and all Improvements thereon to be conducted in conformity with the applicable Maintenance Guidelines, and in the absence of inspection frequency recommendations in any applicable Maintenance Guidelines at least once every three (3) years, in conjunction with the inspection required for the reserve study to be conducted pursuant to the requirements of the Bylaws, to (a) determine whether the Common Property is being maintained adequately in accordance with the

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standards of maintenance established in Section 2.1, (b) identify the condition of the Common Property and any Improvements thereon, including the existence of any hazards or defects, and the need for performing additional maintenance, refurbishment, replacement, or repair, and (c) recommend preventive actions which may be taken to reduce potential maintenance costs to be incurred in the future. The Board shall, during its meetings, regularly determine whether the recommended inspections and maintenance activities set forth in any applicable Maintenance Guidelines have been followed and, if not followed, what corrective steps need to be taken to assure proper inspections and maintenance of the Common Property. The Board shall keep a record of such determinations in the Board’s minutes. The Board shall keep Declarant fully informed of the Board’s activities under this Section 2.1.3. The Board shall employ, consistent with reasonable cost management, such experts, contractors and consultants as are necessary to perform the inspections and make the reports required by this Section.

2.1.4 Reporting Requirements. The Association shall prepare a report of the results of the inspection required by this Section (each, a “Condition Report”). The Condition Report shall be furnished to Owners and Declarant within the time set for furnishing the Budget to the Owners. The Condition Report must include at least the following:
(a) a description of the condition of the Common Property, including a list of items inspected, and the status of maintenance, repair and need for replacement of all such items;
(b) a description of all maintenance, repair and replacement planned for the ensuing Fiscal Year and included in the Budget; (c) if any maintenance, repair or replacement is to be deferred, the reason for such deferral;
(d) a summary of all reports of inspections performed by any expert or consultant employed by the Association to perform inspections; (e) a report of the status of compliance with the maintenance, replacement and repair needs identified in the inspection report for preceding years; and (f) such other matters as the Board considers appropriate.

For a period of ten (10) years after the date of the last Close of Escrow in the Community, the Board shall also furnish to Declarant (a) the Condition Report performed for the Board, whenever such inspection is performed and for whatever portion of the Common Property that is inspected, within thirty (30) days after the completion of such inspection, and (b) the most recent Condition Report prepared for any portion of the Common Property, no later than the date that is ten (10) days after the Association receives Declarant’s written request.

2.1.5 Damage by Owners. Each Owner is liable to the Association for all damage to the Common Property that is sustained due to the negligence or willful act of the Owner, the Owner’s Family, tenants or invitees, and any other Persons who derive their use of the Common Property from the Owner or from the Owner’s Family, tenants or invitees. The Association may, after Notice and Hearing, levy a Special Assessment against the Owner

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representing a monetary charge imposed as a means of reimbursing the Association for costs incurred by the Association in the repair of damage to Common Area and facilities for which the Owner or the Owner’s Family, tenants or invitees were responsible. The amount of the Special Assessment may include (a) the amount of any deductible payable on the insured portion of the loss (if the Association elects to make a claim under its insurance policy), (b) all costs and expenses actually incurred by the Association to correct damage that is not covered by the Association’s insurance or for which no claim has been made, and (c) the amount of the increase in premiums payable by the Association, to the extent the increase is directly caused by damage that was attributed to the Owner or the Owner’s Family, tenants or invitees. In accordance with the CID Act, the Association shall have the power to impose a lien for the foregoing Special Assessment. If a Lot is jointly owned, the liability of its Owners for damage to Common Property is joint and several, except to the extent that the Association and the joint Owners have otherwise agreed in writing.

2.1.6 Stormwater Pollutant Control. The Community is subject to all federal, state and local requirements of the National Pollutant Discharge Elimination System, adopted in accordance with the Federal Clean Water Act. Under California law and regulation, developers are required to file a WQMP with the Regional Water Quality Control Board that sets forth BMPs to mitigate or eliminate pollutants in storm water discharges from the Community both during and after construction of the Residences. In addition, the City may impose its own construction storm water management requirements, policies and guidelines on the Community such as the creation of a Drainage Area Management Plan. BMPs must be followed by the Association in the Common Property and by Owners on their Lots. The BMPs are applicable and enforceable in addition to any local ordinances established by the City and any Maintenance Guidelines imposed by the Declarant or Association relating to discharge of non-storm water into storm drains.

2.2 SINGLE-FAMILY DWELLING. Subject to applicable laws governing Accessory Dwelling Units or Junior Accessory Dwelling Units as defined in Sections 65852.2 and 65852.22 of the California Government Code, respectively, and subject to Sections 2.5 and

2.7 below, the Residence shall be used as a residential dwelling for a single Family and for no other purpose.

2.3 WATER CONSERVATION MEASURES. The Governing Documents impose maintenance and irrigation requirements and appearance standards for the landscaping on the Lots and in the Common Property. All such requirements and standards shall be interpreted and enforced by Owners and the Association only in accordance with governmental water conservation measures then in effect, whether they are imposed by court decision, or by the state, the County, the City or the water district, and whether they are in the form of executive order, statute, regulation or district water conservation ordinance. Water conservation measures may be temporary or permanent, and they may include, among other things, limits on watering hours and duration, outright prohibition of landscape watering, irrigation system design requirements, restrictions on certain plant species, and restrictions on the filling or refilling of swimming pools and spas. In the event the Community is subjected to multiple water conservation measures imposed by any or all of the foregoing governmental entities, the most restrictive shall control over the Governing Documents and over any other less-restrictive measures while it is in effect.

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2.4 FURTHER SUBDIVISION. Except as otherwise provided in this Declaration, no Owner may physically or legally subdivide the Owner’s Lot in any manner, including dividing such Owner’s Lot into time-share estates or time-share uses. This provision does not limit the right of an Owner to rent or lease the Lot pursuant to Section 2.5 below.

2.5 LEASING AND RENTAL.

2.5.1 Leasing or Rental to Declarant. Nothing in this Declaration shall be deemed to prevent an Owner from leasing or renting the Lot to Declarant for use as sales offices, model home, parking area or for other residential or non-residential purposes. Declarant may not lease any portion of the Common Area to the Owners or the Association.

2.5.2 Leasing or Rental to Non-Declarant Parties. Nothing in this Declaration shall be deemed to prevent an Owner from leasing or renting the Lot (or the portion with an Accessory Dwelling Unit or Junior Accessory Dwelling Unit) for residential occupancy, provided that:
(a) the terms of the lease or rental agreement are set out in a written lease or rental agreement;
(b) the lease or rental agreement is expressly made subject to this Declaration and the other Governing Documents of the Community; (c) the lease or rental agreement shall be for a term of not less than thirty (30) days;
(d) the Lot is not offered for any transient occupancy (including hotel, inn, bed & breakfast, vacation rental, time-share, maternity hotel, or other short-term or temporary lodging), whether arranged individually or through a third-party booking or management service, and the lessor, landlord, or third-party booking or management service shall not provide to the occupants any services normally associated with transient occupancy, such as meals, linen service or periodic housekeeping services during the term of the lease or rental agreement;
(e) The lease or rental agreement prohibits use of the Lot for use as a sober living house, halfway house or group housing for registered sex offenders to the extent such restriction is permitted under applicable law; and (f) the lease or rental agreement shall provide that all lessees, tenants, and their Families, agents and invitees are bound by the Governing Documents when present in the Community, and any violation of the Governing Documents by a lessee, tenant or their Families, agents or invitees also constitutes a default under the lease or rental agreement.

The Owner of the leased or rented Lot shall be liable for all acts or omissions, whether negligent or non-negligent, of the lessee, tenant, other occupants of the Lot and their Families, agents and invitees while present in the Community, and the lessor/landlord Owner shall indemnify, defend and hold harmless the Association and the other Owners in the Community from any liability arising from any such acts or omissions. All Assessments, fines, and penalties remain the

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responsibility of the lessor/landlord Owner during the term of the lease or rental agreement. A copy of this Declaration, the applicable Supplemental Declaration and any Rules and Regulations must be provided by the Owner to the lessee/tenant at the commencement of occupancy. The Association may not require that the tenant or lessee be approved by the Association, including but not limited to meeting creditworthiness standards.

2.6 RESALE. Nothing in this Declaration shall be deemed to prevent an Owner from (a) transferring or selling the Lot, either to a single Person, or to more than one (1) Person to be held by them as tenants-in-common, joint tenants, tenants by the entirety or as community property.

2.7 BUSINESS AND COMMERCIAL ACTIVITIES.

2.7.1 Generally. No Owner or other occupant of the Community may undertake any activity in any Lot nor use any portion of the Common Area, for any business, commercial or non-residential purposes, nor for any other purpose that is inconsistent with the Governing Documents. Such purposes include manufacturing, storage, vending, auctions, vehicle or equipment repair, entering into any lease or rental agreement or other occupancy agreement under which the Residence would be occupied by numbers of persons in excess of the maximum occupancy permitted under applicable law, and transient occupancy of the Lot (as described in Section 2.5.2 above). Any lease or rental agreement or other occupancy agreement for a term of fewer than thirty (30) days, and any lease or rental agreement or other occupancy agreement pursuant to which the lessor/Owner provides any services normally associated with transient occupancy, shall be deemed to be for transient purposes and prohibited under this Declaration. All of the foregoing activities are prohibited whether they are engaged in full-time or part-time, whether they are for-profit or non-profit, and whether they are licensed or unlicensed.

2.7.2 Exceptions. This Section shall not be interpreted to prohibit any of the following:
(a) The hiring of employees or contractors to provide maintenance, construction or repair services that are consistent with the Governing Documents; (b) Rental or leasing of a Lot to Declarant for use as a sales office, model homes or parking area for any period of time;
(c) Exercise by Declarant of any rights reserved to it under Article 15;
(d) The provision of in-home health care or assisted-living services to any resident of the Community;
(e) The provision of family home child care services as defined in California Health and Safety Code Section 1597.40, et seq., so long as such services comply with all applicable state and local laws, including licensing, inspection and zoning requirements;

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(f) Small home-based service businesses that comply with all of the following:
(i) The operator of the business lives in the Residence on a permanent, full-time basis;
(ii) When conducted in the Community, business activities take place solely inside the Residence;
(iii) The business does not generate in-person visits by suppliers or clientele;
(iv) The business complies with all laws, regulations and ordinances applicable to the Community, including zoning, health and licensing requirements; (v) The business otherwise complies with the Declaration and is consistent with the residential character of the Community; (vi) The operator of the business posts no business-related signage anywhere in the Community;
(vii) There is no visible evidence in the Community of the business;
(viii) The business does not generate noise or odors that are apparent outside the Residence; and
(ix) The business does not increase the Association’s
liability or casualty insurance obligation or premium.
(g) Other activities that have been determined by governmental authorities to be consistent with the single-family residential uses in the Community, including, for example, residential care facilities that are operated in accordance with California Health and Safety Code Section 1566.5.

2.8 NUISANCES. Noxious or offensive activities are prohibited in the Community and on any street abutting or visible from the Community. The Board is entitled to determine if any device, noise, odor, or activity constitutes a nuisance.

2.8.1 Nuisance Devices. Nuisance devices may not be kept or operated in the Community or on any public street abutting the Community, or exposed to the view of other Lots or Common Area. Nuisance devices include the following:
(a) All horns, whistles, bells or other sound devices (except security devices used exclusively to protect the security of a Residence or a vehicle and its contents);

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(b) Noisy or smoky vehicles, power equipment (excluding lawn mowers and other equipment used in connection with ordinary landscape maintenance), and Restricted Vehicles (defined below);
(c) Devices that create or emit loud noises or noxious odors; (d) Construction or demolition waste containers (except as permitted in writing by the Committee);
(e) Devices that unreasonably interfere with television or radio reception to a Lot;
(f) Plants or seeds infected with noxious insects or plant diseases; (g) The presence of any other thing in the Community which may (i) increase the rate of insurance in the Community, (ii) result in cancellation of the insurance, (iii) obstruct or interfere with the rights of other Owners or the Association, (iv) violate any law or provisions of the Governing Documents, or (v) constitute a nuisance or other threat to health or safety under applicable law or ordinance.

2.8.2 Nuisance Activities. Nuisance activities may not be undertaken in the Community or on any street abutting the Community, or exposed to the view of other Lots or Common Area without the Board’s prior written approval. Nuisance activities include the following:
(a) Subject to Section 2.14.3, hanging, drying or airing clothing, fabrics or unsightly articles in any place that is visible from other Lots or from Common Area; (b) The creation of unreasonable levels of noise from parties, recorded music, radios, television or related devices, or live music performance; (c) The creation of unreasonable levels noise from a barking dog or other animal kept in the Community (e.g., chronic daily nuisance barking by a dog over extended periods of time);
(d) Repair or maintenance of vehicles or mechanical equipment, except in a closed garage or rear yard screened from view by other Lots and Common Area; (e) Outdoor fires, except in barbecue grills and fire pits designed and used in such a manner that they do not create a fire hazard; (f) Outdoor storage of bulk materials or waste materials except in temporary storage areas designated by the Committee.
(g) Any activity which may (i) increase the rate of insurance in the Community, (ii) result in cancellation of the insurance, (iii) obstruct or interfere with the rights of other Owners, (iv) violate any law or provisions of the Governing Documents, or (v) constitute a nuisance or other threat to health or safety under applicable law or ordinance.

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2.9 SIGNS. Subject to California Civil Code Sections 712, 713 and 4710, no sign, advertising device or other display of any kind shall be displayed in the Community or on any public street in or abutting the Community except for the following signs:

2.9.1 entry monuments, community identification signs, and traffic or parking control signs maintained by the Association;

2.9.2 for each Lot, one (1) nameplate or address identification sign which complies with Design Review Committee rules;

2.9.3 for each Lot, one (1) sign advising of the existence of security services protecting a Lot which complies with Design Review Committee rules;

2.9.4 for each Lot, one (1) sign advertising the Lot for sale or lease that complies with the following requirements:
(a) the sign has reasonable design and dimensions (which shall not exceed eighteen (18) inches by thirty (30) inches in size), provided the sign is promptly removed at the close of the resale escrow or the lease, or upon the Owner’s withdrawal of the Lot from the resale or lease market;
(b) the sign is of a color, style and location authorized by the Design Review Committee;

2.9.5 for each Lot, a noncommercial sign, poster, flag or banner must comply with the following requirements:
(a) a noncommercial sign or poster must not be more than nine (9) square feet in size and a noncommercial flag or banner must not be more than fifteen (15) square feet in size; and
(b) a noncommercial sign, poster, flag or banner may not be made of lights, roofing, siding, paving materials, flora, or balloons, or any other similar building, landscaping, or decorative component, or include the painting of architectural surfaces.

2.9.6 other signs or displays authorized by the Design Review Committee.

2.10 PARKING AND VEHICULAR RESTRICTIONS.

2.10.1 Definitions. The following definitions shall apply to parking and vehicular restrictions set forth in this Declaration:

2.10.2 Authorized Vehicle. An “Authorized Vehicle” is an automobile, a passenger van designed to accommodate ten (10) or fewer people, a motorcycle, or a pickup truck having a manufacturer’s rating or payload capacity of one (1) ton or less. The Association has the power to identify additional vehicles as Authorized Vehicles in the Rules and Regulations in order to adapt this restriction to other types of vehicles that are not listed above.

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2.10.3 Restricted Vehicles. The following vehicles are “Restricted Vehicles:” (a) large commercial-type vehicles (for example, stake bed trucks, tank trucks, dump trucks, step vans, and concrete trucks), (b) buses, limousines or vans designed to accommodate more than ten (10) people, (c) inoperable vehicles or parts of vehicles, (d) aircraft, (e) boats, jet skis and other water craft, (f) trailers (for example, trailers designed for horses, boats, motorcycles or other equipment or materials), (g) motor homes and recreational vehicles (for example, fifth-wheels, folding camping trailers, travel trailers, but not including van conversions and truck campers), (h) any vehicle or vehicular equipment deemed a nuisance by the Association, and (i) any other vehicle that is not classified as an Authorized Vehicle. If a vehicle qualifies as both an Authorized Vehicle and a Restricted Vehicle, then the vehicle is presumed to be a Restricted Vehicle, unless the vehicle is expressly authorized in writing by the Association.

The Association has the power to identify additional vehicles as Restricted Vehicles in the Rules and Regulations to adapt this restriction to other types of vehicles that are not listed above.

2.10.4 Parking Restrictions.
(a) Driveways. If an Authorized Vehicle will not fit in a garage it may be parked in the driveway, provided that the Authorized Vehicle does not encroach onto the sidewalk or other public or private right-of-way.
(b) Restricted Vehicles. No Restricted Vehicle may be parked, stored or kept in the Community except for periods of two (2) hours or less in any 24-hour period during loading, unloading, or emergency repairs. However, a resident may park a Restricted Vehicle in a fenced side yard if the Restricted Vehicle is screened from view by other Lots and Common Area, or in the garage so long as the garage is kept closed and the presence of the Restricted Vehicle does not prevent at least one (1) Authorized Vehicle from being parked in the garage at the same time.
(c) Garage Parking. Each Owner shall at all times ensure that the garage physically accommodates at least the number of Authorized Vehicles for which it was originally constructed by Declarant. Subject to applicable laws governing Accessory Dwelling Units or Junior Accessory Dwelling Units as defined in Sections 65852.2 and 65852.22 of the California Government Code, respectively, the garages shall be used for parking of vehicles and storage of personal property only, and not for any dwelling, commercial, recreational, or other purpose, regardless of how many vehicles are owned by the residents. Garage doors must be kept closed except as necessary for entry or exit of vehicles or Persons.

2.10.5 Repair, Maintenance and Restoration. No Person may repair, maintain or restore any vehicle in the Community, unless the work is conducted in the garage with the garage door closed. However, no Person may carry on in any portion of the Community any vehicle repair, maintenance or restoration business.

2.10.6 Enforcement. The Board has the right and power to enforce all parking and vehicle use regulations applicable to the Community, including the levying of fines, citing, and removal of violating vehicles from the Community in accordance with California Vehicle Code Section 22658 or other applicable laws; provided, however, that upon request of the City, the Board shall take all actions necessary to apply California Vehicle Code Sections

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21107.5, 21107.6, 21107.7 and 21107.8 to the Community. The Association may contract with a towing company to remove vehicles that violate the no-parking restrictions and may provide all Owners with a telephone number to report violations. First-time violators will receive a written warning, followed by towing in the event of a repeat violation. However, in the event of an emergency or a situation in which the violating vehicle’s position prevents other vehicles from safely passing, the violating vehicle may be towed without a prior warning. The owner of such towed vehicle shall be responsible for all costs incurred to remedy the violation, including, but not limited to, towing costs, citations and legal fees. The City may, but is not required to, enforce such restrictions, rules and regulations, in addition to applicable laws and ordinances.

2.10.7 Regulation and Restriction by Board. The Board has the power to:
(a) establish additional rules and regulations concerning parking in the Common Area, including designating “parking,” “guest parking,” and “no parking” areas; (b) prohibit any vehicle parking, operation, repair, maintenance or restoration activity in the Community if it determines in its sole discretion that the activity is a nuisance; and (c) promulgate rules and regulations concerning vehicles and parking in the Community as it deems necessary and desirable.

2.10.8 Use of Vehicles as Temporary or Permanent Dwelling. No automobile, trailer, mobile home, camper, motor home, recreational vehicle or other vehicle may be used as a dwelling in any portion of the Community, either temporarily or permanently.

2.11 ANIMAL REGULATIONS.

2.11.1 Restrictions on Numbers and Types of Pet Animals. No commercial or farm livestock, including poultry, may be kept in the Community (equestrian use is not considered commercial or farm livestock). However, up to two (2) pet dogs and two (2) pet cats may be kept on each Lot, subject to applicable law, the Governing Documents, and such Rules and Regulations as may be adopted by the Board, including weight and size limitations. In addition to pet dogs and pet cats, but subject to local ordinances and such Rules and Regulations as may be adopted by the Board, residents may keep on each Lot reasonable numbers of horses and small household pets that live in containers or cages, including fish, rodents and birds, so long as there is no external evidence of their presence in the Community. Notwithstanding the foregoing, no person may bring or keep in the Community any dog that satisfies the definition of “vicious dog” under the Potentially Dangerous and Vicious Dogs Law at California Food and Agriculture Code Section 31601, et seq., nor any animal that is determined by the Board to be a nuisance to other residents in the Community. The Board has the power and discretion to determine whether the types or numbers of any animals kept on a Lot are a nuisance, and the Board shall have the power to abate the nuisance through any legal procedure that is available to the Association. The Board may from time to time, by duly adopted Rule and without having to amend this Declaration, change the numbers of dogs or cats or types of animals that may be kept in the Community (subject at all times to limits set by applicable law), and in such event, the duly adopted Rule shall control over the limits stated in this Section 2.11.1.

2.11.2 Reasonable Accommodations for Service Animals. Also notwithstanding the limitations on numbers and types of animals in Section 2.11.1, the Board shall, without having to amend Section 2.11.1, make reasonable accommodations allowing residents with legally recognized disabilities to keep service animals in their homes on receipt of

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reasonable evidence: (a) that a resident of the Lot has a legally recognized disability; (b) that the service animal is properly trained to provide a necessary service for the disabled resident, and (c) showing that the animal meets the criteria for service animals set forth in state and federal law and regulation. Qualified service animals shall not be counted as pet animals for purposes of the numeric limits in Section 2.11.1, nor shall any limitations on the types of animals set forth in Section 2.11.1 apply to a qualified service animal. Qualified service animals permitted under this Section 2.11.2 remain subject to Sections 2.11.3 and 2.11.4 and the provisions of Sections

2.8 and 2.11.1, concerning the Association’s rights and powers to abate nuisances.

2.11.3 Animal Keeping Areas. Residents are advised to choose pets that can be kept indoors or in the fenced yard areas of the Lot at all times without disturbing neighbors.

Subject to restriction by the Board in accordance with applicable law, this Section, and subject to the Association’s right to abate nuisances under Section 2.8 above, all animals belonging to an Owner, or to a resident member of an Owner’s Family, or brought into the Community by contractors, tenants, guests, employees, or invitees, must at all times be kept under the control of a Person capable of controlling the animal either on a leash or other appropriate restraint or in a carrier, except when inside the Residence or in the fenced yard areas of the Lot. No animal may be left unattended in any part of the Common Area for any period of time, regardless of whether the animal is restrained or in a cage or container. Cages, containers, bedding, litter boxes, food containers and bowls must be kept inside the Residence or in the fenced yard area of the Lot at all times.

2.11.4 Owner Responsibility. The Owner of the Lot shall be solely responsible for ensuring that there is no evidence outside the Lot of the presence of any animals kept by the Owner or by the other residents of the Lot (including unreasonable noise or noticeable odor). Furthermore, each Owner shall be absolutely liable to each and all other Owners, their Families, tenants, residents and guests for damages or injuries caused by any animals brought or kept in the Community by an Owner, by members of the Owner’s Family, or by the Owner’s guests, tenants or invitees. Each Owner shall immediately remove any excrement or clean other unsanitary conditions caused by such Owner’s animals on any portion of the Community.

2.12 ANTENNA AND SATELLITE DISH RESTRICTIONS. No Person may install on any Lot any antenna, satellite dish or other over-the-air receiving device unless it meets the definition of an “Authorized Antenna” below and is installed in accordance with the following restrictions:

2.12.1 Definition. An Authorized Antenna is (a) an antenna designed to receive direct broadcast satellite service, including direct-to-home satellite service, that is one (1) meter or less in diameter, (b) an antenna designed to receive video programming service, including multi-channel multipoint distribution service, instructional television fixed service, and local multipoint distribution service, and is one (1) meter or less in diameter or diagonal measurement, (c) an antenna designed to receive television broadcast signals, or (d) an antenna used to receive and transmit fixed wireless signals. The foregoing definition is not intended to prohibit cordless or wireless telephones, PDAs, computers, wireless home data networking equipment or other portable wireless data or telephony devices that do not otherwise constitute a nuisance device under the Governing Documents.

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2.12.2 Masts. An Authorized Antenna may be mounted on a mast to reach the height needed to receive an acceptable quality signal, subject to Local Government Agency permitting requirements for safety purposes. No mast shall be installed in such a way that it overhangs a neighboring Lot or Common Area, or poses a threat of damage to property or injury to persons.

2.12.3 Preferred Installation Locations and Restrictions on Installation.

Rooftops, chimneys, balconies or fascia boards/barge boards at the rear of the Residence are the preferred installation location in the Community. The Committee may adopt reasonable restrictions on installation and use of an Authorized Antenna as part of its Design Guidelines in order to minimize visibility of the Authorized Antenna from other Lots. Such restrictions may designate one (1) or more additional preferred installation locations, or require camouflage such as paint (subject to the antenna manufacturer’s recommendations) or screening vegetation or other Improvements. However, no restriction imposed by the Committee may (a) unreasonably delay or prevent the installation, maintenance or use of an Authorized Antenna, (b) unreasonably increase the cost of the installation, maintenance or use of an Authorized Antenna, or (c) preclude acceptable quality reception.

2.12.4 Prohibitions on Installation. The Committee may prohibit the installation of an Authorized Antenna in a particular location if, in the Committee’s opinion, the installation, location or maintenance of such Authorized Antenna unreasonably affects the safety of the Owners or any other Person, or for any other safety-related reason established by the Committee. The Committee may also prohibit an Owner from installing an Authorized Antenna on any real property which such Owner does not own or is not entitled to exclusively use or control under the Governing Documents, including the Common Area or any other property outside the Owner’s Lot. The Committee also has the power to prohibit or restrict the installation of any antenna or other over-the-air receiving device that does not meet the definition of an Authorized Antenna as set forth above.

2.12.5 Review after Installation. The Committee may review the location and installation of an Authorized Antenna after it is installed. After its review, the Committee may require that the Authorized Antenna be moved to a preferred installation location (if one has been designated) for safety reasons or to comply with reasonable restrictions subject to this Section and applicable law. Approvals shall not be unreasonably withheld or delayed but may include restrictions which do not significantly increase the cost of installation, maintenance or use of the device, or significantly decrease its efficiency or performance or preclude reception of an acceptable quality signal) and in compliance with all applicable ordinances of the City, California statutes (e.g., California Civil Code Section 4725), and federal regulations, as each may be amended or revised.

2.12.6 Restatement of Applicable Law. This Section is intended to be a restatement of the authority granted to the Committee under the law. All amendments, modifications, restatements and interpretations of the law applicable to the installation, use or maintenance of an antenna or over-the-air receiving device shall be interpreted to amend, modify, restate or interpret this Section.

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2.13 TRASH. Trash and recyclables must be stored in closed sanitary containers. No trash, recyclable materials or containers may be stored in view of other Lots or the Common Area, except that closed containers may be set out at curbside for a reasonable period of time on trash collection days (not to exceed twelve (12) hours before and after scheduled trash collection hours). At all other times, Owners must store closed containers in the garage or in a fenced yard area, out of sight of other Lots and Common Area, until scheduled collection times.

2.14 OWNER-INSTALLED IMPROVEMENTS.

2.14.1 Outdoors. No Person shall install any permanent outdoor Improvements on a Lot if the Improvements are visible from other Lots, or from the streets or the Common Area, without the prior written approval of the Design Review Committee obtained in accordance with Article 5 and the Rules and Regulations. Examples of outdoor Improvements that require prior Committee approval include the following:
(a) Roof-mounted equipment, including heating, ventilation and air conditioning equipment, vents or ducts;
(b) Screening structures that are intended to hide roof-mounted Improvements (such Improvements may be hidden from view only by extension of the main structure);
(c) Modifications to the building exteriors including room additions, second-story additions or other cosmetic or structural changes in the architectural elements of the Residence;
(d) Permanently installed athletic equipment, including freestanding basketball standards, backboards attached to a Residence or any other Improvement on a Lot, soccer goals, hockey goals, skate ramps or other such Improvements. However, portable athletic equipment (such as movable basketball standards, soccer goals, hockey goals and skate ramps) may be used in yards or driveways or in other areas authorized in writing by the Board, but when not in use they must be brought indoors or stored out of the view of streets, other Lots and Common Area;
(e) Sunshades, awnings or patio covers, if visible from other Lots, Common Area, or streets;
(f) Accessory structures such as sheds, barns and casitas; (g) Paint or other surface finishes (unless the paint or finish used is the same as originally used by Declarant on the Improvement or the same as previously approved in writing by the Committee);
(h) Front yard or parkway landscaping and hardscape, including flatwork, fences or walls, or statuary, if visible from other Lots, Common Area or streets; and (i) Rear yard landscaping and hardscape, including flatwork and fences or walls.

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The foregoing list is provided for guidance but it is not intended to be an exhaustive list. The Committee has the power to require prior review and approval of other Improvements that are not listed above. Outdoor patio or lounge furniture, potted plants and portable barbecue equipment may be kept pursuant to the Rules and Regulations.

Persons who intend to install or construct outdoor Improvements on their Lots must consult the Design Review Committee prior to installation to determine if prior review and approval are required. This Section shall not apply to any Improvements installed by Declarant or by the Association, nor shall it apply to maintenance, repair, replacement or reconstruction of existing Improvements by Declarant or by the Association.

2.14.2 Windows. No Owner or other resident of the Community may apply paint, foil, film, or other reflective material to the glass portion of any window in the Residence.

This Section shall not be interpreted to prohibit the installation of blinds, shutters, curtains and other similar indoor window coverings.

2.14.3 Clotheslines and Drying Racks. Clotheslines and drying racks meeting the definitions in California Civil Code Sections 4753(a) and (b) may be placed in the fenced rear yard of the Lot. The Association has the power to establish Design Guidelines to minimize the visibility of the clotheslines and drying racks from the Common Area and other Lots so long as they do not effectively prohibit or unreasonably restrict the Owner’s ability to use the clothesline or drying rack, and do not significantly increase its cost to use.

2.14.4 Holiday Decorations. Outdoor holiday decorations, or indoor holiday decorations that are visible from outside, shall be displayed for a reasonable period of time prior to the date of the holiday, as determined by the Association in its Rules and Regulations, but they shall be removed no later than fourteen (14) days after the date of the holiday, unless prior written authorization has been granted by the Board to remove them at a later date.

2.14.5 No Liability. Neither the Declarant nor the Association shall be liable or responsible for any damage that results from Improvements installed, constructed or modified by or at the direction of an Owner. Owners are advised to consult and use qualified consultants and contractors when installing, constructing or modifying Improvements on the Owner’s Lot.

2.15 MECHANICS’ LIENS. No Owner may cause or permit any mechanic’s lien to be filed against the Common Property or another Owner’s Lot for labor or materials alleged to have been furnished or delivered to such Owner. Any Owner who permits a mechanics’ lien to be so filed shall cause the lien to be discharged no later than five (5) days after receipt of written notice to discharge the lien is received from the Board. If the Owner fails to remove a mechanic’s lien after written notice from the Board, the Board may discharge the lien and levy a Special Assessment against the violating Owner’s Lot to recover the cost of discharge.

2.16 DRAINAGE. There shall be no interference with or obstruction of the established surface drainage pattern(s) over any Lot in the Community, unless an adequate alternative provision is made for proper drainage.

2.16.1 Established Drainage. Any alteration of the established drainage pattern must at all times comply with all applicable Local Government Agency requirements. For

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the purpose hereof, “established” drainage is defined as the drainage which exists at the time of the first Close of Escrow for the sale of the Lot by Declarant, or as shown on any plan approved by the Committee. Established drainage includes drainage from Lot to Lot and to and from property lying outside the Community.

2.16.2 Surface Drainage Improvements. The established drainage system on a Lot may consist of any or all of the following: earthen or concrete drainage swales, concrete channels, catch basins with underground drainage pipelines, roof-mounted gutters or downspouts (collectively, “Surface Drainage Improvements”). Each Owner shall maintain, repair, and replace and keep free from debris or obstructions all Surface Drainage Improvements, if any, located on the Owner’s Lot, except those for which a public authority or utility is responsible.

2.16.3 Sub-Drains. Owners are advised that Declarant may have installed one or more drain lines beneath the surface of the Lot (each, a “Sub-Drain”). Sub-Drains and appurtenant Improvements constructed or installed by Declarant (if any) provide for collection and drainage of surface waters from each Lot and from elsewhere in the Community to proper points of disposal.

2.16.4 Maintenance of Drainage Improvements. Each Owner must maintain, repair, replace and keep free of debris and obstructions all Surface Drainage Improvements and Sub-Drains located on the Lot, except those for which the Association or a public authority or utility are responsible. To ensure adequate drainage within the Community, it is essential that the Surface Drainage Improvements and the Sub-Drains, if any, not be modified, removed or blocked without having first made alternative drainage arrangements. Therefore, no Owner may install, alter, modify, remove or replace any Surface Drainage Improvements or SubDrains on the Owner’s Lot without first making alternative drainage arrangements approved in writing by the Committee and by applicable governmental agencies. Owner-installed irrigation systems must be installed and maintained to prevent excess runoff and accumulation of surface water.

2.16.5 Grading. The grading design in the Community should not be altered to redirect surface water flow toward the Lots or onto adjacent property, or to trap water so that it ponds or floods. Grading modifications are subject to law, approval by the Board, and the terms of any Recorded drainage easements.

2.17 WATER SUPPLY SYSTEM. No individual water supply, sewage disposal or water softener system is permitted on any Lot unless such system is designed, located, constructed and equipped in accordance with the requirements, standards and recommendations of any water district having jurisdiction, the City, the Design Review Committee and all other applicable Local Government Agencies with jurisdiction.

2.18 VIEW OBSTRUCTIONS. Each Owner acknowledges that (a) there are no protected views in the Community, and no Lot is assured the existence or unobstructed continuation of any particular view, and (b) any construction, landscaping (including the growth of landscaping) or other installation of Improvements by Declarant or other Owners may impair the view from any Lot, and each Owner hereby consents to such view impairment.

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2.19 SOLAR ENERGY SYSTEMS. In accordance with Civil Code Sections 714 and 714.1, each Owner may install a solar energy system (as defined in California Civil Code Section 801.5), on the Owner’s Lot to serve the Owner’s domestic needs, so long as (a) the design and location of the solar energy system meet the requirements of all applicable governmental ordinances, and (b) the design and location receive the prior written approval of the Design Review Committee.

2.20 RIGHTS OF DISABLED. Subject to Article 5, each Owner may modify such Owner’s Residence and the route over the Lot leading to the front door of his Residence, at his sole expense to facilitate access to his Residence by persons who are blind, visually impaired, deaf or physically disabled, or to alter conditions which could be hazardous to such persons, in accordance with California Civil Code Section 4760 or any other applicable law.

2.21 TEMPORARY BUILDINGS. No tent, shack, shed, trailer, mobile home, modular building, storage building, shipping or storage container or similar movable building or shelter may be placed on any portion of the Community either temporarily or permanently without the prior written consent of the Design Review Committee. This Section is not intended to prohibit Accessory Dwelling Units or Junior Accessory Dwelling Units as defined in Sections 65852.2 and 65852.22 of the California Government Code, respectively, to the extent they are permitted by local ordinance.

2.22 PROHIBITED RESIDENTIAL USES. No garage, carport, trailer, camper, motor home, recreational vehicle or other vehicle may be used as a residence in the Community, either temporarily or permanently.

2.23 COMMON PROPERTY. The Common Property may not be altered without the Board’s prior written consent.

2.24 MINERAL EXPLORATION AND EXTRACTION. No oil drilling, oil, gas or mineral development operations, oil refining, geothermal exploration or development, quarrying or mining operations of any kind may be conducted on the Community, nor are oil wells, tanks, tunnels or mineral excavations or shafts permitted upon the surface of any Lot or within five hundred (500) feet of the surface of the Community. No derrick or other structure designed for use in boring for water, oil, geothermal heat or natural gas may be erected, maintained or permitted on any Lot.

2.25 EASEMENTS. The ownership interests in the Lots and Common Area are subject to the easements granted and reserved in this Declaration. Each of the easements reserved or granted herein shall be deemed to be established upon the recordation of this Declaration and shall henceforth be deemed to be covenants running with the land for the use and benefit of the Owners, the Association and the Declarant, and each of their respective properties, superior to all other encumbrances applied against or in favor of any portion of the Community. Individual grant deeds to Lots and Common Area may, but shall not be required to, set forth the easements specified in this Article or elsewhere in this Declaration.

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ARTICLE III

DISCLOSURES
This Article discloses information that was obtained from third-party sources such as consultants, government and public records. No Person should rely on the ongoing accuracy or completeness of the information discussed in this Article because many of the matters discussed below are outside the control of Declarant and the Association. Accordingly, Declarant does not make any guarantee as to the accuracy or completeness of the matters disclosed below.

Furthermore, Declarant is under no obligation to update or revise any matter disclosed in this Article. This Article is intended to provide Owners with information known or provided to Declarant as of the date this Declaration was Recorded, to be used as a starting point for further independent investigation.

3.1 NO REPRESENTATIONS OR WARRANTIES. No representations or warranties, express or implied, have been given by Declarant, the Association or their agents, in connection with the Community, its physical condition, zoning, compliance with law, fitness for intended use, or in connection with the subdivision, sale, operation, maintenance, cost of maintenance, taxes or regulation of the Community as a planned unit development, except as expressly provided in this Declaration, as submitted by Declarant to the DRE, provided by Declarant to the first Owner of each Lot, or provided in the standard warranty required by the VA and FHA.

3.2 SPECIFIC PLAN. The Community is within the boundaries of the Heritage Oaks Equestrian Community Specific Plan, which was approved by the City on August 20, 2007 (the “Specific Plan”). The Specific Plan establishes land uses that will govern future development activities within its boundaries. These land uses are currently planned to include an equestrian residential community, with single-family residences, open space, multi-purpose trails, an equestrian staging/parking area and drainage facilities covering approximately 54 acres located in the City. The current Specific Plan may change from time to time with the approval of the City.

3.3 EQUESTRIAN ZONED LOTS. Lots in the Community are zoned for equestrian uses. Such zoning would permit the keeping of horses on certain residential Lots.

Residents in the Community may notice associated noise, insects and odors resulting from these areas. Lots less than 20,000 square feet in area are prohibited from keeping horses or other large animals.

3.4 PUBLIC TRAIL AREAS, EQUESTRIAN STAGING/PARKING AREA AND OPEN SPACE. A multi-purpose pedestrian and equestrian public trail extends throughout the Community (the “Public Trail Areas”) as shown on Exhibit F. The Public Trail Areas are located in Common Property and shall be maintained by the Association. In addition, the Community includes an equestrian staging/parking area on Lots C and D of the Map and an area for hiking, equestrian trails and open space on Lot F that can be used by the public. By accepting a deed to a Lot in the Community, each Owner acknowledges that members of the public are allowed free access to the Public Trail Areas, equestrian staging/parking area and open area even though such areas are maintained by the Association. Each Owner is advised that ownership of a Lot in the Community does not confer any exclusive right to use or control the

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Public Trail Areas, equestrian staging/parking area or open area. Neither Declarant nor the Association has any control over use of the Public Trail Areas, equestrian staging/parking area or open area by members of the public. Residents of the Community may experience odor and noise, as well as limitations on privacy from use of the Public Trail Areas, equestrian staging/parking area and open area at various times of the day. In addition, portions of the open space are set aside for mitigation of impacts to the oak woodland or other habitat and these areas may be fenced off or otherwise delineated and access to these areas may be temporarily or permanently restricted.

3.5 ELECTRIC POWER LINES, WIRELESS COMMUNICATIONS
FACILITIES, AND HUMAN HEALTH. Underground and overhead electric transmission and distribution lines and transformers (“Power Lines”) are located within or in the vicinity of all residential communities, including this Community. The Power Lines within and in the vicinity of the Community produce electric and magnetic fields (“EMF”). In addition, a wireless cell site is located on Lot G of the Map. Antennas and other equipment for wireless telecommunications (for example, cellular phones) may also be located in or in the vicinity of the Community. Like all wireless communications facilities, these facilities produce radiofrequency fields (“RF”). Numerous studies concerning the effects of EMF and/or RF on human health have been undertaken over the past several years and some are ongoing. There are studies that have reported a possible relationship between EMF exposure and some health conditions, such as childhood leukemia, miscarriages, and certain neurological disorders, while other studies found no such relationship. Some studies have reported associations between RF exposure and brain cancer, while other studies found no such relationship. Additional information about EMF and RF is available from the following agencies:

3.5.1 the World Health Organization’s International EMF Project website at Non-ionizing Radiation, Part 1: Static and Extremely Low-frequency (ELF) Electric and Magnetic Fields (who.int);

3.5.2 the U.S. National Institute of Environmental Health Sciences website at Electric & Magnetic Fields (nih.gov);

3.5.3 the CDC website at EMF (Electric and Magnetic Fields) | NIOSH | CDC;

3.5.4 The California Public Utilities Commission EMF page at Electric Magnetic Fields (ca.gov); and
This list is not meant to be all-inclusive.

3.6 SOILS CONDITIONS. For in-depth information regarding the geotechnical aspects of the Community, Owners should review the geotechnical reports entitled “Preliminary Geotechnical Investigation Proposed Residential Subdivision Tract No. 29964” prepared by Inland Foundation Engineering, Inc., dated January 18, 2001, as updated by Sladden Engineering, dated March 21, 2024 (collectively, the “Soils Report”). A copy of the Soils Report is available for viewing at the City’s Community Development Department.

3.6.1 Expansive Soil. The soil in the Community may be composed of materials that have “expansive” characteristics. Owners should perform soils testing, use special

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construction techniques and take precautions when constructing new Improvements or modifying existing Improvements because the soil expands when it is wet and can cause Improvements to lift and crack.

3.6.2 Fill Soil. Some of the Residences in the Community are constructed on fill soil in accordance with the recommendations and inspection of licensed civil and soils engineers. Buildings constructed on fill soil will demonstrate some post-placement settlement.

A soils report certifying the compaction of fill soil is available for review at the City.

3.6.3 Concrete and Masonry Improvements. Special attention is required in designing and constructing concrete and masonry Improvements such as masonry walls and planters, concrete slabs, pools, patios, sidewalks, spas and decking. For example, steel reinforcing bars may be required in lieu of steel mesh in concrete patio slabs. Block walls may require extra horizontal and vertical steel reinforcing bars. Pools and spas located at or near the top or bottom of a slope or on expansive soils may require special design and construction methodology.

3.6.4 Drainage and Irrigation. Owners must use adequate drainage and irrigation control. Drainage devices installed in the Community by Declarant should not be altered in any manner that will redirect or obstruct drainage through these devises. The construction or modification of Improvements by Owners should not result in ponding of water.

Owner-installed drainage devices, including, but not limited to, concrete ditches, area drain lines and gutter should be carefully designed and installed with professional assistance and then maintained in an unobstructed condition. Drainage devices installed by Declarant designed to serve more than one (1) Lot or the Common Property should not be altered in a manner that will redirect or obstruct the drainage through these drainage devices. All Owner-installed landscape irrigation systems should be designed, constructed, and operated to prevent excessive saturation of soils. All Owner-installed landscaping (if any) must be designed to ensure that water drains away from the Residence footings and other Improvements. Obstructions such as walls should not be constructed across swales unless adequate replacement drainage Improvements have been installed or created. Planters should be lined with an impervious surface and should contain outlets to drain excess water. Owners shall maintain and keep clear of debris any drainage or facility or device constructed by Declarant.

3.6.5 Slope Creep. While horizontal and vertical movement of earth at or near tops or bottom of slopes (often described as “slope creep”) is generally minor in nature and does not always occur, it may affect Improvements such as pools, spas, patios, walls, slabs, planters, decking and the like. Slope creep can cause pools, spas and walls to tilt and crack and may cause cracking or lifting in brickwork or concrete in a manner that will allow these Improvements to function yet not meet the Owner’s cosmetic expectations. Professional soils and structural engineers should be retained to design and construct such Improvements to mitigate the effects of slope creep and to ensure compliance with special rules for such Improvements that are required under the applicable Building Code or other applicable regulations. If possible, Improvements should not be constructed within ten (10) feet of the edge, top or bottom of a slope. Even with professional assistance, minor lifting and cracking can occur.

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3.6.6 Slope Area. If an Owner’s Lot includes a slope, the Owner will be required to maintain the slope at the Owner’s expense, unless the slope is designated for maintenance by the Association. If the Association will maintain a landscaped slope, an Owner must not interfere with or modify any portion of the slope including, but not limited to, the construction of any structure. If an Owner’s Lot is adjacent to or near the bottom of a slope, or if drainage otherwise flows onto an Owner’s Lot, then an Owner shall accept that drainage on the Owner’s Lot and the Owner shall not obstruct the flow of that drainage or avert it away from the Owner’s Lot or otherwise alter the flow of that drainage in any manner that will have any effect on an Owner’s neighbor.

3.6.7 Corrosive Soil. Soils in the Community may be corrosive. Corrosive soil may corrode buried metal Improvements. Owners should advise their consultants that below-ground Improvements must be constructed of materials that are compatible with corrosive soils.

3.6.8 Interior Gases and Other Contaminants. The aging process of soil and natural soil elements, as well as the aging of man-made building materials, may create unwanted and undesired gases and other contaminants in Residences, both new and previously occupied. In addition, a lower rate of air exchange between outdoor and indoor environments has resulted from modern construction techniques, which comply with energy conservation requirements enacted by the State of California. A lower air exchange rate can result in the build-up of unwanted gases and other contaminants in varying degrees. As the quality of the air we breathe can affect our health, Owners should frequently air out their Residence by opening the windows.

3.7 FIRE DANGERS; CALIFORNIA WILDFIRES. California is prone to environmental and weather conditions that create a high risk of destructive wildfires. These wildfires are difficult to predict, control and extinguish. Such wildfires may cause property loss or bodily harm. They may also force evacuation from the Residence or the Community. As recent wildfires in California have illustrated, wildfires may occur at any time of year, start without warning and spread at a rapid and unpredictable rate, destroying massive amounts of property and injuring or killing humans and animals in their path. Rural, suburban and urban areas have all been impacted by wildfires. In addition to the risks associated with wildfires and related evacuations, looting of evacuated sites and mudslides associated with rain in recently burned areas are all risks that accompany California wildfires. Declarant cannot control the conditions that create and spread these wildfires, and Owners are advised to carefully consider the risks of wildfires that are inherent in California living. Owners should become familiar with local and state fire protection agencies’ recommendations and information regarding California wildfire dangers and risks. The inherent risks of wildfires in California may have an adverse impact on insurance premiums for homeowner’s insurance or homeowner’s insurance may not be available at all. Buyer should consult an insurance professional for additional information about the costs and availability of insurance for the Residence.

3.8 WATER HAZARDS. Multiple water quality basins and other water quality features (“Water Quality System”) in the Community are a part of the storm drain system and water quality management plan for the Community, including on Lots A and E of the Map. In addition, Lot G of the Map is planned to be conveyed to the South Mesa Water District on which

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a water storage tank/reservoir will be constructed. Owners and residents understand that during periods of heavy rain, water and debris will accumulate in the Water Quality System located within and adjacent to the Community. Other water hazards are located in the Community including floodways and drain inlets. Owners and other residents are advised to keep children and animals away from the Water Quality System and other water hazards at all times.

3.9 EASEMENTS FOR CITY AND WATER DISTRICT. Lots 4, 9, 10, 33, 41, A, B, E, F and G of the Map are subject to easements for storm drain, maintenance and access purposes in favor of the City as shown on the Map. Lots 42 and G of the Map are subject to easements for sewer, potable water, recycled water, maintenance and access purposes in favor of the Yucaipa Valley Water District (“Water District”) as shown on the Map. The Owners and the Association are limited in their use of these portions of their Lots and Common Area.

3.10 RECLAIMED WATER. In its efforts to conserve water, the Water District may require the use of reclaimed water (treated wastewater) in the future to irrigate portions of the Community. The water used in the Residences and outside in the yard areas through hose bibs will be domestic potable water. The water used to irrigate the Common Property may include reclaimed water. Reclaimed water is not potable and therefore not suitable for human consumption. As with any water overspray, the repeated spray of reclaimed water may stain or discolor personal property, fencing and structural Improvements.

According to the Water District, the Water District’s reclaimed water is disinfected with chlorine and its clarity to the human eye is indistinguishable from domestic water. The standards imposed on the Water District for reclaimed water quality are established by governmental regulatory agencies, and these standards are subject to change. Declarant, the Master and their agents are not liable for any property damage or personal injury by reclaimed water. Owners are subject to Water District rules and regulations. Further information regarding Water District regulations is available at the Water District’s headquarters.

3.11 OAK TREE PRESERVATION. Certain Common Property in the Community has native oak trees or oak trees planted on or transplanted to the Common Property in conjunction with the initial construction activities of the Declarant. The Association shall abide by the maintenance standards applicable to the Community implemented by the City and by such specific landscaping restrictions as may be adopted by the Association which conform to such standards to protect oak trees, including the City of Calimesa’s Tree Preservation Ordinance (Chapter 18.80) and the approved Tree Survey Report for Heritage Oaks, as may be revised or amended. Such provisions may include, but shall not be limited to, provisions governing the type of landscaping around oak trees, provisions for minimum required maintenance of oak trees, provisions limiting landscape irrigation and other Improvements in the vicinity of oak trees and provisions restricting the removal of oak trees.

3.12 DEVELOPMENTAL STANDARDS. The construction of any building and landscaping Improvements requires compliance with all applicable regulations and permit and development impact fees in effect at the time of building permit issuance by the City. The construction of Improvements is subject to minimum setback and height restrictions and may not be permitted. Owners should refer to applicable City ordinances for any restrictions concerning the construction of any Improvements on the Lots.

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3.13 SURROUNDING USES. This disclosure is intended to provide Owners with information on surrounding uses as of the date of Recordation. Uses and Improvements in the immediate vicinity of the Community include the items listed below:

North of the Community: Residential.

South of the Community: Open Space/Future Residential.

East of the Community: Open Space/Future Residential.

West of the Community: Residential (some equestrian uses).

Existing and proposed uses in surrounding areas may change without notice. Neither Declarant nor the Association has any control over uses outside the Community. Owners are advised to contact applicable Local Government Agencies for updated information concerning the development plan for the surrounding community.

3.14 MAJOR THOROUGHFARES. The Community is surrounded by existing and planned major public thoroughfares with traffic at all hours, including Interstate 10. Residents of the Community may notice noise and vibration from traffic, and glare from streetlights, all of which are normal and expected incidents of living near major public roads.

3.15 RURAL AREA. The Community is located in a rural area which includes various rural land uses. As a result of the rural character of the area in the vicinity of the Community, Lots may be affected by wildlife, noises, odors, reptiles or insect life typically found in rural areas. Snakes, rodents, mountain lions and coyotes are some of the wildlife typically encountered in rural areas. Owners should expect to encounter insects of all types including flies, ticks, Africanized (killer) bees, mosquitoes, spiders, black and red fire ants, crickets and aphids. Declarant and the Association are not responsible for wildlife control or eradication.

3.16 WIND. All of Southern California is subject to periods of high winds. Wind speeds in the Community may exceed that experienced in other areas of the surrounding region.

Owners must ensure that any Improvements an Owner installs on a Lot are constructed or designed to withstand high winds. Owners are advised to consult with experienced architects and engineers in the design and specification of any Improvements that an Owner plans to add.

3.17 SPECIAL TAX ASSESSMENT. The Community lies within the boundaries of special tax assessment districts and Mello-Roos Community Facilities Districts which require the levy of a special tax for repayment of bonds issued for the purpose of paying the cost of services or capital improvements. The amount of the special tax and any other information pertaining to any such district can be obtained from the City and/or County Assessor’s office.

3.18 PROPERTY LINES. The boundaries of each Lot in the Community and the Common Area owned in fee simple by the Association are delineated on subdivision (tract) maps, lot line adjustments or parcel maps that are public records and are available at the County Recorder’s office.

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3.19 UTILITY IMPROVEMENTS. There may be above-ground and subterranean utility Improvements such as transformers, lift stations, water or sewer facilities, telecommunications vaults and other visible Improvements necessary for the delivery of utilities or other services either on or adjacent to each Lot. Each Owner understands that the placement of such Improvements is dictated by the needs of the applicable utility or service provider, and the presence of such Improvements in the Community is in accordance with easements created prior to or during the development of the Community. Each Owner, by accepting a deed to a Lot in the Community, understands that each Lot and portions of the Common Property are subject to one or more such easements for placement of utility Improvements. No Owner may modify, remove or otherwise interfere with utility Improvements on any Lot or other portion of the Community.

3.20 MOLD. Molds are simple, microscopic organisms, present virtually everywhere, indoors and outdoors. Mold can be any color, but is usually green, gray, brown or black. Mold requires a food source (such as paper, wood, leaves or dirt), a source of moisture and a suitable temperature (generally 40-100 degrees Fahrenheit) to grow.

Individuals are exposed to molds on a daily basis, and in most instances there are no harmful effects. However, the buildup of molds in the indoor environment may contribute to serious health problems for some individuals. Due to a variety of factors, including the fact that sensitivities to various types of molds and other potential contaminants vary from person to person, there are currently no state or federal standards concerning acceptable levels of exposure to mold. Sources of indoor moisture that may lead to mold problems include, but are not limited to flooding, leaks, seepage, sprinkler spray hitting the Residence, overflow from sinks or sewers, damp basement or crawl space, steam from shower or cooking, humidifiers, wet clothes drying indoors, watering house plants, and clothes dryers exhausting indoors.

Each Owner should take precautions to prevent the growth of mold in the Residence from these and other sources. Preventative measures include, but are not limited to the following:
(1) regularly cleaning the Residence; (2) regularly checking for accumulated moisture in corners and unventilated areas; (3) running fans, dehumidifiers and air conditioners to reduce indoor humidity; (4) stopping the source of any leak or flooding; (5) removing excess water with mops or a wet vacuum; (6) moving wet items to a dry, well-ventilated area; (7) regularly cleaning and disinfecting indoor and outdoor surfaces that may contain mold; (8) having major appliances, such as furnaces, heat pumps, central air conditioners, ventilation systems and furnace-attached humidifiers inspected, cleaned and serviced regularly by a qualified professional; (9) cleaning the refrigerator, air conditioner and dehumidifier drip pans and filters regularly and ensuring that refrigerator and freezer doors seal properly; and (10) avoiding over-watering of landscaping.

It is the Owner’s responsibility to monitor the Residence and Lot on a continual basis for excessive moisture, water and mold accumulation. For additional information regarding mold, please refer to the following websites: California Department of Public Health - CDPH Home (ca.gov); Centers for Disease Control and Prevention – CDC | National Center for Environmental Healthh; U.S. Environmental Protection Agency – U.S. Environmental Protection Agency | US EPA; Illinois Department of Public Health – Home (illinois.gov); and Washington State Department of Health – Home :: Washington State Department of Health.

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3.21 CHANGE IN PLANS. Declarant has the right to develop the Annexable Territory with Improvements that may be different in design, size, character, style and price from those in Phase 1 or any other Phase.

3.22 NO ENHANCED PROTECTION AGREEMENT. No language contained in this Declaration, any Notice of Addition or any Supplemental Declaration shall constitute, or be interpreted to constitute, an enhanced protection agreement (“EPA”), as defined in Section 901 of the California Civil Code. Further, no express or implied representations or warranties made by Declarant in any other writing are intended to constitute, or to be interpreted to constitute, an EPA.

3.23 ADDITIONAL PROVISIONS; FUTURE ENFORCEABILITY. There may be provisions of various laws, including, without limitation, the Davis-Stirling Common Interest Development Act codified at Sections 4000, et seq. of the California Civil Code, California’s Fair Employment and Housing Act at Sections 12900, et seq. of the California Government Code, and the Federal Fair Housing Act codified at Title 42 United States Code, Section 3601, et seq., among other laws, which may supplement or override the Governing Documents.

Declarant makes no representations or warranties regarding the future enforceability of any portion of the Governing Documents.

ARTICLE IV

THE ASSOCIATION

4.1 GENERAL DUTIES AND POWERS. The Association has the duties and powers enumerated and described in the Governing Documents, in addition to the general and implied powers of a nonprofit mutual benefit corporation, generally to do all things that a corporation organized under the laws of the State of California may lawfully do which are necessary or proper in operating for the general welfare of the Owners, subject only to the limits on the exercise of such powers listed in the Governing Documents. Unless otherwise indicated in the Articles of Incorporation, Bylaws, this Declaration, or the Supplemental Declarations, the powers of the Association may be exercised by the Board.

4.2 SPECIFIC DUTIES AND POWERS. In addition to its general powers and duties, the Association has the following specific powers and duties.

4.2.1 Common Property. The power and duty to accept, maintain and manage the Common Property in accordance with the Governing Documents. The Association may install or remove capital Improvements on the Common Property. The Association may reconstruct, replace or refinish any Improvement on the Common Property.

4.2.2 Utilities. The power and duty to obtain, for the benefit of the Community, all water, gas and electric services necessary for the Common Property.

4.2.3 Granting Rights. The power to grant exclusive or nonexclusive easements, licenses, rights of way or fee interests in the Common Area owned in fee simple by the Association, to the extent any such grant is reasonably required (a) for Improvements to serve the Community, (b) for purposes of conformity with the as-built location of Improvements installed or authorized by Declarant or the Association, (c) in connection with any lawful lot line

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adjustment, or (d) for other purposes consistent with the intended use of the Community. This power includes the right to create and convey easements for one or more Owners over portions of the Common Area. The Association may de-annex any portion of the Community from the encumbrance of the Declaration in connection with any lawful lot line adjustment.

After the Association acquires fee title to a portion of the Common Area, the affirmative vote of members owning at least sixty-seven percent (67%) of the Lots in the Community shall be required before the Board may grant exclusive use of any portion of that Common Area to any member, except as provided in California Civil Code Section 4600. Any measure placed before the members requesting that the Board grant exclusive use of any portion of the Common Area shall specify whether the Association will receive any monetary consideration for the grant and whether the Association or the transferee will be responsible for providing any insurance coverage for exclusive use of the Common Area.

4.2.4 Employ Personnel. The power to employ Persons necessary for the effective operation and maintenance of the Common Property, including legal, management and accounting services.

4.2.5 Insurance. The power and duty to obtain and keep in effect the policies of insurance specified in this Declaration.

4.2.6 Sewers and Storm Drains. The power and duty to maintain any private sewer systems, private storm drains, or private drainage facilities in the Common Area in accordance with the Governing Documents.

4.2.7 Maintenance Guidelines. The power and duty to (a) operate, maintain and inspect the Common Property and its various components in conformity with any Maintenance Guidelines and any maintenance manual, and (b) review any maintenance manual for necessary or appropriate revisions no less than annually after the Board has prepared the Budget.

4.2.8 Rules and Regulations. The power, but not the duty, to adopt, amend, repeal and create exceptions to, the Rules and Regulations. (a) Standards for Enforceability. To be valid and enforceable, a Rule must satisfy all the following requirements:
(i) The Rule must be in writing;
(ii) The Rule is within the authority of the Board conferred by law or by this Declaration, the Articles of Incorporation or the Bylaws; (iii) The Rule is not inconsistent with governing law, this Declaration, the Articles of Incorporation or the Bylaws; (iv) The Rule is adopted, amended or repealed in good faith and in substantial compliance with the requirements of the CID Act;

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(v) The Rule is reasonable; and
(vi) The Rule complies with the requirements of California Civil Code Section 4350.
(b) Areas of Regulation. The Rules and Regulations may concern use of the Community and any common amenities in the Community, signs, parking restrictions, minimum standards of property maintenance, the operation in the Community of drones, unmanned aircraft systems (UAS), unmanned aerial vehicles (UAV), model aircraft, and similar vehicles or devices by any other name, now existing or that may be developed in the future, whether operated for hobby use or for business purposes, by Owners, tenants or residents, or by contractors or invitees, and any other matter under the Association’s jurisdiction. (c) Limits on Regulation. The Rules and Regulations must apply uniformly to all Owners and must comply with this Declaration and all applicable state and local laws. The rights of Owners to display in or on their Residences religious, holiday and political signs, symbols and decorations of the kinds normally displayed in single family residential neighborhoods shall not be abridged. However, the Association may adopt time, place and manner restrictions for such displays if they are visible outside the Residence. No modification to the Rules and Regulations may require an Owner to dispose of personal property that was in compliance with all rules previously in force; however, this exemption shall apply only during the period of such Owner’s ownership of the Lot and it shall not apply to: (i) subsequent Owners who take title to a Lot after the modification is adopted; or (ii) clarifications to the Rules and Regulations.
(d) Procedure for Adoption, Amendment and Repeal. Rules or procedures concerning (1) the use of Common Property, (2) the use of a Lot, including any aesthetic standards or Design Guidelines that affect Lots, (3) Owner discipline, including any schedule of monetary penalties for violation of the Governing Documents, (4) any procedure for the imposition of penalties, (5) any standards for delinquent assessment payment plans, (6) any procedures adopted by the Association for resolution of assessment disputes, (7) any procedures for reviewing and approving or disapproving a proposed physical change to a Lot or to the Common Area, and (8) procedures for elections (each, a “Covered Rule”) may only be adopted, amended or repealed (each, a “Rule Change”) in accordance with the following procedure:
(i) The Board must provide written notice (“Notice”) of a proposed Rule Change to the members at least thirty (30) days before making the Rule Change, except for an Emergency Rule Change (defined below). The Notice must include the text of the proposed Rule Change and a description of the purpose and effect of the proposed Rule Change; (ii) The decision on a proposed Rule Change shall be made at a Board meeting after consideration of comments made by the members of the Association; (iii) The Board shall deliver Notice of the Rule Change to every member of the Association within fifteen (15) days of adoption. If the change was an Emergency Rule Change, the Notice shall include the text of the Emergency Rule Change, and the date on which the Emergency Rule Change expires;

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(iv) If the Board determines that an immediate Rule Change is required to address an imminent threat to public health or safety, or an imminent risk of substantial economic loss to the Association, it may make the change on an emergency basis (“Emergency Rule Change”) and no Notice will be required. An Emergency Rule Change is effective for one hundred-twenty (120) days, unless the Emergency Rule Change provides for a shorter effective period. Any Rule Change that is adopted as an Emergency Rule Change may not be re-adopted under authority of this subpart;
(v) A Notice required by this Section 4.2.8(d) is subject to California Civil Code Section 4360;
(vi) A Rule Change made pursuant to this Section 4.2.8(d) may be reversed as provided in California Civil Code Section 4365. (e) Exceptions to Procedure. The procedure in Section 4.2.8(d) does not apply to:
(i) Rules that do not meet the definition of Covered Rules above;
(ii) Decisions of the Board regarding maintenance of
Common Property;
(iii) A decision on a specific matter that is not intended to apply generally;
(iv) A decision setting the amount of an Annual Assessment or a Special Assessment;
(v) A Rule Change that is required by law if the Board has no discretion as to the substantive effect of the changes; or (vi) Issuance of a document that merely repeats existing law or the Governing Documents.

4.2.9 Borrowings. The power, but not the duty, to borrow money for purposes authorized by the Articles of Incorporation, Bylaws, Declaration, any Supplemental Declarations or any Notice of Addition, and to use the Common Area owned in fee simple by the Association as security for the borrowing.

4.2.10 Contracts. The power, but not the duty, to enter into contracts. This includes contracts with Owners or other Persons to provide services or to maintain Improvements in the Community and elsewhere which the Association is not otherwise required to provide or maintain by this Declaration. The Board also has the power, but not the duty, to (a) enter into a contract with a credit reporting service to make regular reports to credit bureaus of both timely and delinquent payment of Annual Assessments by all Owners, and (b) recover from delinquent Owners the delinquent payment reporting fee charged the Association by the credit reporting service as part of the “reasonable fees and costs of collection” of delinquent

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Assessments under California Civil Code Section 5650. If the Board elects to use a credit reporting service, then the Board shall include in the Association’s annual assessment and foreclosure policy statement (as described in the Bylaws and California Civil Code Section 5730) the amount of the reporting fee that it may recover from delinquent Owners.

4.2.11 Telecommunications Contract. Notwithstanding anything in the Governing Documents to the contrary, the Board shall have the power to enter into, accept an assignment of, or otherwise cause the Association to comply with the terms and provisions of a telecommunications services contract (“Telecommunications Contract”) with a telecommunications service provider (“Service Provider”), pursuant to which the Service Provider shall serve as the provider of Telecommunications Services to each Lot in the Community. The Board shall only enter into, accept an assignment of, or otherwise cause the Association to comply with the terms of the Telecommunications Contract if the Board determines that the Telecommunications Contract is in the best interests of the Association.

Although not exhaustive, the Board shall consider the following factors in making such a determination in the exercise of its business judgment:
(a) Initial Term and Extensions. The initial term of the Telecommunications Contract should not exceed five (5) years, and, if the Telecommunications Contract provides for automatic extensions, the length of each such extension should also not exceed five (5) years.
(b) Termination. The Telecommunications Contract should provide that: (1) at least six (6) months prior to the expiration of either the initial or any extended term of the Telecommunications Contract, the entire Membership of the Association may, with the vote or written approval of more than fifty percent (50%) of all Members other than Declarant, prevent any automatic extension that the Telecommunications Contract may provide for (with or without cause), and thereby cause the Telecommunications Contract to expire, and (ii) at any time with reasonable notice periods, the Board may terminate the Telecommunications Contract if, in the sole discretion of the Board, the Service Provider fails to provide quality, state-of-the-art Telecommunications Services.
(c) Fees. Whether the monthly fee charged to the Association by the Service Provider for the provision of the Telecommunications Services to all of the Lots represents a discount from the comparable retail fees charged by the Service Provider in the general geographic area in which the Community is located, and, if so, the amount of such discount.
(d) Installation of Telecommunications Facilities. Whether the Service Provider is solely responsible for the installation, and the cost thereof, of all of the Telecommunications Facilities necessary to provide Telecommunications Services to each Lot. (e) Removal of Telecommunications Facilities. Whether the Service Provider has the right to remove the Telecommunications Facilities upon expiration or termination of the Telecommunications Contract.

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4.2.12 Indemnification.
(a) For Association Representatives. To the fullest extent authorized by law, the Association has the power and duty to indemnify Board members, Association officers, Design Review Committee members, and all other Association committee members for all damages, pay all expenses incurred, and satisfy any judgment or fine levied as a result of any action or threatened action brought because of performance of an act or omission within what such person reasonably believed to be the scope of the Person’s Association duties (“Official Act”). Board members, Association officers, Design Review Committee members, and all other Association committee members are deemed to be agents of the Association when they are performing Official Acts for purposes of obtaining indemnification from the Association pursuant to this Section. The entitlement to indemnification under this Declaration inures to the benefit of the estate, executor, administrator and heirs of any person entitled to such indemnification.
(b) For Other Agents of the Association. To the fullest extent authorized by law, the Association has the power, but not the duty, to indemnify any other Person acting as an agent of the Association for damages incurred, pay expenses incurred, and satisfy any judgment or fine levied as a result of any action or threatened action because of an Official Act.
(c) Provided by Contract. The Association also has the power, but not the duty, to contract with any Person to provide indemnification in addition to any indemnification authorized by law on such terms and subject to such conditions as the Association may impose.

4.2.13 Annexing Additional Property. The power, but not the duty, to annex, pursuant to Section 16.2, additional property to the Community encumbered by this Declaration.

4.2.14 Vehicle and Parking Restrictions. The power granted in Section 2.10 to identify Authorized Vehicles or Restricted Vehicles and to modify the vehicle and parking restrictions in the Governing Documents.

4.2.15 Landscaping. The Board has the power, but not the duty, to grant Owners revocable licenses that allow Owners to replace and/or add landscaping Improvements to any portion of the Common Area, subject to the prior written approval of the Board, any reasonable restrictions or conditions the Board may impose, and the right of the Board to revoke such license, remove the Improvements and charge the Owner for the cost of such removal.

4.2.16 Prohibited Functions.
(a) Off-site Nuisances. The Association shall not use any Association funds or resources to abate any annoyance or nuisance emanating from outside the physical boundaries of the Community.
(b) Political Activities. The Association shall not conduct, sponsor, participate in or expend funds or resources toward any activity, campaign or event, including any

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social or political campaign, event or activity which does not directly and exclusively pertain to the authorized activities of the Association. Furthermore, the Association shall not participate in federal, state or local activities or activities intended to influence a governmental action affecting areas outside the Community (e.g. endorsement or support of legislative or administrative actions by a Local Government Agency), nor shall it support or campaign for or against candidates for elected or appointed office or ballot proposals. There shall be no amendment of this Section so long as Declarant owns any portions of the Community.

4.2.17 Standing to Resolve Disputes. The Association shall have standing to institute, defend, settle or intervene in litigation, alternative dispute resolution or administrative proceedings (each, an “Action”) in its own name as the real party in interest and without joining the Owners, in matters pertaining to (a) damage to the Common Area, (b) damage to portions of the Lots which the Association is obligated to maintain or repair, and (c) damage to portions of the Lots which arises out of, or is integrally related to, damage to the Common Area or portions of the Lots that the Association is obligated to maintain or repair (each, a “Claim”). However, the Association shall not have standing to institute, defend, settle or intervene in any Action in any matter pertaining only to an individual Lot and not included in clauses (b) and (c) above.

The Association may, in its sole discretion, elect to institute, intervene in, continue, settle or dismiss an Action at any time. If the Association institutes or intervenes in an Action on a Claim, the Association’s standing shall be exclusive, and the Owners shall thereafter be barred from instituting a new Action or maintaining a pending Action on the same Claim.

The Association’s election to institute or intervene in an Action on a particular Claim shall not create any affirmative obligation on the part of the Association to maintain, settle or dismiss the Action, except in the Association’s sole discretion, and subject to Section 12.4. If the Association elects to settle an Action, the terms of the settlement shall be binding on the Owners, and the Owners shall be barred from instituting or continuing any other Action on the same Claim. If the Association elects to dismiss an Action, the dismissal shall be with prejudice to the institution or continuation by one or more Owners of any Action on the same Claim.

4.2.18 Duty to Collect and Report Beneficial Ownership Information Required under Corporate Transparency Act; Protection of Confidential Information. The Association shall comply with the Beneficial Ownership Information reporting requirements of the Corporate Transparency Act (Sections 6401-6403 of Pub. L. No. 116-283 (H.R. 6395), 134 Stat. 338, 116th Cong. 2d Sess.), which include collection and timely reporting of specified identifying information (described in Title 31 U.S.C. Section 5331) about the Directors and any other individuals who exercise substantial control of the Association (“Beneficial Ownership Information”) to U.S. Department of the Treasury’s Financial Crimes Enforcement Network.

The Association shall take all commercially reasonable measures to treat the information that is collected and reported as confidential and shall work with its Manager to develop methods for the safe retention and disposal of such collected confidential information and the reports containing such confidential information.

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4.3 STANDARD OF CARE, NON-LIABILITY.

4.3.1 Scope of Powers and Standard of Care.
(a) General Scope of Powers. Rights and powers conferred on the Board, the Design Review Committee or other committees or representatives of the Association by the Governing Documents are not duties, obligations or disabilities charged upon those Persons unless the rights and powers are explicitly identified as including duties or obligations in the Governing Documents or law. Unless a duty to act is imposed on the Board, the Design Review Committee or other committees or representatives of the Association by the Governing Documents or law, the Board, the Design Review Committee and the committees have the right to decide to act or not act. Any decision not to act is not a waiver of the right to act in the future. (b) Business Affairs. This Section 4.3.1(b) applies to Board member actions in connection with management, personnel, maintenance and operations, insurance, contracts and finances, and Design Review Committee member actions. Each Board member shall perform the duties of a Board member in good faith, in a manner the Board member believes to be in the best interests of the Association and with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances. When performing his duties, a Board member is entitled to rely on information, opinions, reports or statements, including financial data prepared or presented by:
(i) One (1) or more officers or employees of the
Association whom the Board member believes to be reliable and competent in the matters presented;
(ii) Counsel, independent accountants or other Persons as to matters which the Board member believes to be within such Person’s professional or expert competence; or
(iii) A committee of the Board upon which the Board
member does not serve, as to matters under its designated authority, which committee the Board member believes to merit confidence, so long as, in any such case, the Board member acts in good faith, after reasonable inquiry when the need therefor is indicated by the circumstances and without knowledge that would cause such reliance to be unwarranted.

This Section 4.3.1(b) is intended to be a restatement of the business judgment rule established in applicable law as it applies to the Association. All modifications and interpretations of the business judgment rule applicable to the Association shall be interpreted to modify and interpret this Section 4.3.1(b).
(c) Association Governance. This Section 4.3 applies to Board actions and Design Review Committee decisions in connection with interpretation and enforcement of the Governing Documents, architectural and landscaping control, regulation of uses within the Community, rule-making and oversight of committees. Actions taken or decisions made in connection with these matters shall be reasonable, fair and nondiscriminatory.

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4.3.2 Non-liability.
(a) General Rule. No Person is liable to any other Person (other than the Association or a party claiming in the name of the Association) for injuries or damage resulting from such Person’s Official Acts, except to the extent that such injuries or damage result from the Person’s willful or malicious misconduct. No Person is liable to the Association (or to any party claiming in the name of the Association) for injuries or damage resulting from such Person’s Official Acts, except to the extent that such injuries or damage result from such Person’s negligence or willful or malicious misconduct. The Association is not liable for damage to property in the Community unless caused by the negligence of the Association, the Board, the Association’s officers, the Manager or the Manager’s staff. (b) Non-liability of Volunteer Board Members and Officers. A volunteer Board member or volunteer Association officer shall not be personally liable to any Person who suffers injury, including bodily injury, emotional distress, wrongful death or property damage or loss as a result of the tortious act or omission of the volunteer officer or Board member if all applicable conditions specified in California Civil Code Section 5800 are met.
(c) Non-liability of Owners. Pursuant to California Civil Code Section 5805, no Owner shall be liable for any cause of action in tort which can be brought against the Owner solely because of the Owner's undivided interest in the Common Area so long as the Association keeps one (1) or more policies of insurance which include coverage for general liability of the Association in the amount required by California Civil Code Section 5805 and that insurance is in effect for the cause of action being brought.

4.4 MEMBERSHIP.

4.4.1 Generally. Every Owner shall automatically acquire a Membership in the Association and retain the Membership until such Owner’s Lot ownership ceases, at which time such Owner’s Membership shall automatically cease. Ownership of a Lot is the sole qualification for Membership. Memberships are not assignable except to the Person to whom title to the Lot is transferred, and every Membership is appurtenant to and may not be separated from the fee ownership of the Lot. The rights, duties, privileges and obligations of all Owners are as provided in the Governing Documents.

4.4.2 Transfer. The Membership of any Owner may not be transferred, pledged or alienated in any way, except on the transfer or encumbrance of such Owner’s Lot, and then only to the transferee or Mortgagee of the Owner’s Lot. A prohibited transfer is void and will not be reflected in the records of the Association. Any Owner who has sold the Owner’s Lot to a contract purchaser under an agreement to purchase may delegate the Owner’s Membership rights to the contract purchaser. The delegation must be in writing and must be delivered to the Association before the contract purchaser may vote. The contract seller shall remain liable for all Assessments attributable to the contract seller’s Lot which accrue before title to the Lot is transferred. If the contract seller fails or refuses to delegate his Membership rights to the contract purchaser before the Close of Escrow, the Association may record the transfer to the contract purchaser in the Association’s records. However, no contract purchaser will be entitled

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to vote at Association meetings during the term of a purchase contract without satisfactory evidence of the delegation of the contract seller’s Membership rights to the contract purchaser.

The Association may levy a reasonable transfer fee against a new Owner and such Owner’s Lot (which fee shall be paid through escrow or added to the Annual Assessment chargeable to such new Owner) to reimburse the Association for the administrative cost of transferring the Membership to the new Owner on the Association’s records. Such fee may not exceed the Association’s actual cost involved in changing its records.

4.4.3 Classes of Membership. The Association classes of voting Membership are as follows:
(a) Class A. Class A members are all Owners except Declarant for so long as a Class B Membership exists. Class A members are entitled to one (1) vote for each Lot owned by such Class A members which is subject to Assessment. Declarant shall become a Class A member on conversion of Declarant’s Class B Membership as provided below. The vote for each Lot shall be exercised in accordance with Section 4.5.1, but no more than one (1) Class A vote may be cast for any Lot.
(b) Class B. The Class B member is Declarant. The Class B member is entitled to three (3) votes for each Lot owned by Declarant which is subject to Assessment. The Class B Membership shall convert to Class A Membership on the earlier to occur of the following events:
(i) The second (2nd) anniversary of the first Close of
Escrow in the most recent Phase; or
(ii) The fourth (4th) anniversary of the first Close of Escrow in Phase 1.

4.4.4 Class B Board Appointment Right. The Class B Membership shall also include a limited right to appoint a simple majority of the members of the Board of Directors (the “Board Appointment Right”).
(a) Limits on Exercise of Board Appointment Right. Until the expiration of the Board Appointment Right as determined below, Declarant shall not be permitted to cast any Class A or Class B vote to elect any member of the Board of Directors.

Declarant’s power to fill seats on the Board shall during that time be limited to exercise of the Board Appointment Right.
(b) Term of Board Appointment Right. The Board Appointment Right shall remain effective until the earlier of:
(i) the date on which the Class B Membership converts to Class A Membership; or
(ii) the date on which Declarant no longer owns any portion of the Community or Annexable Territory.

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(c) No Amendment without Declarant Consent. Notwithstanding anything to the contrary in this Declaration, this Section 4.4.4 shall not be amended without the prior written consent of Declarant until Declarant no longer owns any portion of the Community or Annexable Territory.

4.5 VOTING RIGHTS. Voting rights attributable to the Lots in a Phase shall be exercised only after Annual Assessments have commenced in the Phase.

4.5.1 Limits Generally. All voting rights are subject to the Governing Documents. Except as provided in Sections 4.5.2 and 12.3 of this Declaration and as provided in the Bylaws, as long as there is a Class B Membership, any provision of the Governing Documents which expressly requires the vote or written consent of a specified percentage (instead of a majority of a quorum) of the Association’s voting power before action may be undertaken shall require the approval of such specified percentage of the voting power of both the Class A and the Class B Memberships. Except as provided in Section 12.3 of this Declaration and as provided in the Bylaws, on termination of the Class B Membership, any provision of the Governing Documents which expressly requires the vote or written consent of Owners representing a specified percentage (instead of a majority of a quorum) of the Association’s voting power before action may be undertaken shall then require the vote or written consent of Owners representing such specified percentage of both (a) the Association’s total Class A voting power, and (b) the Association’s Class A voting power represented by Owners other than Declarant.

4.5.2 Relinquishment of Control Regarding Initiation of Right to Repair Law Claim. Beginning on the date of the first annual meeting of Owners, Declarant relinquishes control over the Association’s ability to decide whether to initiate a Right to Repair Law Claim, whether by action of the Board or action by the Owners. This means that Declarant, current employees and agents of Declarant, Board members who are appointed by Declarant, Board members elected by a majority of votes cast by Declarant, and all other Persons whose vote or written consent is inconsistent with the intent of the preceding sentence, are prohibited from participating and voting in any decision of the Board or the Owners to initiate a Right to Repair Law Claim.

4.5.3 Joint Ownership. When more than one (1) Person holds an interest in any Lot (each, a “Co-owner”), each Co-owner may attend any Association meeting, but only one (1) Co-owner shall be entitled to exercise the single vote to which the Lot is entitled. Co-owners owning the majority interests in a Lot may designate in writing one (1) of their number to vote.

Fractional votes shall not be allowed and the vote for each Lot shall be exercised, if at all, as a unit. Where no voting Co-owner is designated or if the designation is revoked, the vote for the Lot shall be exercised as the Co-owners owning the majority interests in the Lot agree. Unless the Association receives a written objection in advance from a Co-owner, it shall be conclusively presumed that the voting Co-owner is acting with his Co-owners’ consent. No vote may be cast for any Lot if the Co-owners present in person or by proxy owning the majority interests in such Lot fail to agree to the vote or other action. The nonvoting Co-owner or Co-owners are jointly and severally responsible for all obligations imposed on the jointly-owned Lot and are entitled to all other benefits of ownership. All agreements and determinations lawfully made by the

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Association in accordance with the voting percentages established in the Governing Documents are binding on all Owners and their successors in interest.

4.5.4 Ownership by Legal Entity. When title to a Lot is held by a legal entity recognized under California law (“Entity Owner”) that is not a natural person, the governing authority of such Entity Owner may designate in writing to the Association one (1) natural person (“Entity Owner Representative”) to exercise the single vote to which the Lot is entitled. Fractional votes shall not be allowed. Where no designation of an Entity Owner Representative is made or if the designation is revoked, the vote for the Lot shall be exercised as determined by the Entity Owner. Unless the Association receives a written objection in advance of the election from the governing authority of the Entity Owner, it shall be conclusively presumed that the vote exercised by the Entity Owner was properly exercised in accordance with the Entity Owner’s procedures.

ARTICLE V

DESIGN REVIEW COMMITTEE

5.1 MEMBERS OF COMMITTEE. The Design Review Committee shall be composed of three (3) members. The initial members of the Design Review Committee shall be representatives of Declarant until one (1) year after the first Close of Escrow in Phase 1 (“First Anniversary”). After the First Anniversary, the Board may appoint and remove one (1) member of the Design Review Committee, and Declarant may, but is not obligated to, appoint and remove a majority of the members of the Design Review Committee and fill any vacancy of such majority, until the earlier to occur of (a) Close of Escrow for the sale of ninety percent (90%) of all the Lots in the Community and the Annexable Territory, or (b) the fifth (5th) anniversary of the original issuance of the Public Report for Phase 1, after which the Board may appoint and remove all members of the Design Review Committee. Design Review Committee members appointed by the Board must be Owners or agents of Owners, but Design Review Committee members appointed by Declarant need not be Owners or agents of Owners. Owner-Board members may be appointed by the Board to serve as Design Review Committee but only if a reasonable effort is made to fill the positions on the Design Review Committee with persons who are not Board members and a position remains vacant.

5.2 POWERS AND DUTIES.

5.2.1 General Powers and Duties. The Design Review Committee shall consider and act upon all plans and specifications submitted for its approval, including inspection of work in progress to assure conformity with plans approved by the Design Review Committee, and shall perform such other duties as the Board assigns to it.

5.2.2 Issuance of Standards. The Design Review Committee has the power and duty to promulgate Design Guidelines against which to examine any request made pursuant to this Article. The Design Review Committee shall annually issue and update its Design Guidelines and provide notice of any requirements for Committee approval of proposed Improvements. The notice shall describe the types of proposed Improvements that require Committee approval, and it shall include a copy of the procedure used to review and approve or disapprove such proposed Improvements. The Design Guidelines may require a fee to

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accompany each application for approval, and may identify additional factors which the Design Review Committee will consider in reviewing submissions. The Design Review Committee may provide that fees it imposes be uniform, or that fees be determined in any other reasonable manner. The Design Review Committee may require such detail in plans and specifications submitted for its review as it deems proper, including landscape plans, floor plans, site plans, drainage plans, elevation drawings and descriptions or samples of exterior materials and colors.

5.2.3 Retaining Consultants. The Design Review Committee has the power, but not the duty, to retain licensed architects, contractors and other professionals to advise its members in connection with decisions.

5.3 REVIEW OF PLANS AND SPECIFICATIONS.

5.3.1 Improvements Requiring Approval. No construction, reconstruction, installation, removal or alteration of any outdoor Improvement on a Lot, including landscaping, grading, excavation, filling or other alteration to the grade or level of the land, may be commenced by any Owner without prior Design Review Committee approval. However, a Residence may be repainted or refinished without prior Design Review Committee approval so long as the Residence is repainted or refinished with materials that are identical to the materials originally used by Declarant or last applied to the Improvement with Committee approval (as applicable). The provisions of this Article apply to construction, installation and alteration of solar energy systems, as defined in Section 801.5 of the California Civil Code, subject to the provisions of California Civil Code Sections 714 and 714.1, the applicable Building Code, zoning regulations, and other laws.

5.3.2 Application Procedure. Owners who seek Committee approval shall submit plans and specifications showing the dimensions, exterior elevation, color, materials used and location of the proposed Improvements, along with a review fee in an amount set in writing from time to time by the Committee, along with all other review materials required under this Article (collectively, an “Application”). Until changed by the Board, the address for the submission of the Application is the Association’s principal office. The form of Application used by the Design Review Committee may include spaces allowing “Adjacent Owners” to sign or initial the Application confirming that they have been notified of the application. The Design Review Committee may establish a definition of “Adjacent Owners” in its Design Guidelines.

Applications will be complete and may be approved or disapproved by the Design Review Committee even if all of the Adjacent Owners do not initial the Applications so long as the Owner submitting plans and specifications (“Applicant”) certifies that the Applicant has asked the Adjacent Owners to sign the Applications. The requirement that the Applicant attempt to obtain the signatures of Adjacent Owners is intended only to provide notice of the pending application to the Adjacent Owners. It does not create in the Adjacent Owners any power to approve or disapprove the Application by signing or withholding a signature. Only the Committee may approve or disapprove an Application.

The Design Review Committee shall deliver its written approval, disapproval, or request for additional information or materials to the Applicant at the address listed in the Application no later than the date that is forty-five (45) calendar days after the date on which the Design Review Committee has received the complete Application (“Review Deadline”). If, on

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the Review Deadline, the Committee has failed to deliver to the Applicant its written approval, disapproval, or request for additional information or materials, then the Application shall be deemed approved, and the Manager or a representative of the Board or Committee shall at the written request of the Applicant execute a written approval therefor within fifteen (15) days of receipt of the written request. A decision on a proposed Improvement shall be consistent with California law, made in good faith and may not be unreasonable, arbitrary or capricious. If disapproved, the written decision shall include both an explanation of why the proposed Improvement is disapproved and a description of the procedure for reconsideration by the Board.

Issuance of permits by a Local Government Agency does not remove the requirement that the Applicant obtain the approval of the Design Review Committee before commencing construction of the proposed Improvements.

5.3.3 Standard for Approval. The Design Review Committee shall approve an Application only if it determines that (a) installation, construction or alterations of the Improvements in the locations proposed will not be detrimental to the appearance of the Community as a whole, (b) the appearance of the proposed Improvements will be in harmony with the existing Improvements and the overall design theme in the Community, (c) installation, construction or alteration of the proposed Improvements will not detract from the beauty, wholesomeness and attractiveness of the Community or the enjoyment of the Community by the Owners, (d) maintenance of the proposed Improvements will not become a burden on the Association, and (e) the proposed Improvements are consistent with the Governing Documents.

The Committee’s decision on any proposed change may not violate any governing provision of law, including the Fair Employment and Housing Act, or a building code or other applicable law governing land use or public safety. The Committee may consider the impact of views from other Lots, reasonable privacy right claims, passage of light and air, beneficial shading and other aesthetic factors in reviewing, approving or disapproving any Application. However, neither the Declarant nor the Association warrants that any views in the Community are protected. No Lot is guaranteed the existence or unobstructed continuation of any particular view.

5.3.4 Conditions of Approval. The Design Review Committee may condition its approval of an Application for any Improvement on any one (1) or more of the following: (a) the Applicant’s agreement to furnish the Association with security acceptable to the Association against any mechanic’s lien or other encumbrance which may be Recorded against the Common Area or another Owner’s Lot as a result of such work; (b) such changes to the Application as the Design Review Committee considers appropriate; (c) the Applicant’s agreement to grant to the Association or other Owners such easements as are made reasonably necessary by the existence of the Improvement; (d) the Applicant’s agreement to install water, gas, electrical or other utility meters to measure any increased utility consumption; (e) the Applicant’s agreement to reimburse the Association for the cost of maintaining the Improvement (should the Association agree to accept maintenance responsibility for the Improvement as built); or (f) the Applicant’s agreement to complete the proposed work within a stated period of time.

The Committee may also require the Applicant, prior to commencing work, to deposit with the Association adequate funds to repair or restore any Common Property that may be damaged by the Applicant or the Applicant’s contractors. The Design Review Committee will determine the actual amount of the deposit in each case, but the amount shall be at least enough to cover the cost of repairing or restoring damage that is reasonably foreseeable to the Design Review Committee. The deposit shall be refundable to the extent the Design Review Committee finds

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that the work of Improvement is complete, and that the Common Property was not damaged or was restored at least to the condition it was in prior to the commencement of work.

The Design Review Committee has the right to require a reasonable security deposit with each Application. The security deposit will be applied to the cost of repairing damage to Common Property as a result of the Application. The amount of the security deposit shall be specified in the Design Guidelines. The security deposit may be increased or decreased from time to time at the discretion of the Design Review Committee. The Design Review Committee may also require submission of additional plans and specifications or other information before approving or disapproving material submitted. The Applicant shall meet any review or permit requirements of the City and/or County before making any construction, installation or alterations permitted under this Declaration.

5.3.5 Governmental Approvals. The Applicant shall meet the requirements of all applicable ordinances, codes and regulations of the Local Government Agencies, including zoning laws, building and safety codes, fire codes and applicable inspection and permit requirements before making any construction, installation or alterations permitted under this Declaration. All approvals issued by the Committee are in addition to, and not in lieu of, applicable governmental approvals, which the Applicant must also obtain at his sole cost, prior to or concurrently with Committee approvals, and before commencing any work. Furthermore, governmental approvals are in addition to, and not in lieu of, Committee approvals required under the Governing Documents. No determination by any Local Government Agency that the Applicant has met applicable governmental requirements for a particular Improvement shall relieve the Applicant of its obligation to obtain all required Committee approvals required under this Article and the Governing Documents.

5.3.6 Matters Outside Scope of Approval. The Design Review Committee’s approval or disapproval of each Application shall be based solely on the aesthetic considerations listed in this Article. Approval of any Application does not constitute a finding or a warranty by the Design Review Committee that the work of Improvement described in the Application (a) incorporates good engineering practices, (b) complies with applicable law, ordinance, code or regulation, including zoning laws, building and safety codes or fire codes, (c) complies with the requirements of any utility provider, or (d) is permissible under the terms of any easement, license, permit, Mortgage, deed of trust, or other recorded or unrecorded instrument (other than the Governing Documents) that affects the land. Nothing in this Declaration shall be construed to require Design Committee approval of any construction, reconstruction, installation, removal or alteration of an Improvement by Declarant or by the Association.

5.3.7 Exculpation of Committee. By submitting an Application, each Applicant is deemed to agree that neither the Design Review Committee, nor the members thereof, nor Declarant, nor their respective agents, employees, attorneys or consultants shall be liable to any Person for:
(a) Any matter outside the Committee’s scope of approval as discussed in Section 5.3.6 above;

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(b) Any defect in any Improvement constructed by or on behalf of the Applicant pursuant to an approved Application;
(c) Any loss, damage, or injury to Persons or property arising out of or in any way connected with work performed by or on behalf of the Applicant pursuant to an approved Application; or
(d) Any loss, damage, or injury to Persons or property arising out of or in any way connected with the performance of the Design Review Committee’s duties hereunder, unless due to willful misconduct or gross negligence.

5.4 MEETINGS AND ACTIONS OF THE DESIGN REVIEW COMMITTEE.

The Design Review Committee shall meet as necessary to perform its duties. So long as a majority of the members of the Design Review Committee are Declarant representatives, the Design Review Committee may, by resolution unanimously adopted in writing, designate an Owner or a Declarant representative to serve as a “Design Review Committee Representative” to take any action or perform any duties for and on behalf of the Design Review Committee except the granting of variances. The Design Review Committee Representative need not be a current member of the Design Review Committee. In the absence of such designation, the vote or written consent of a majority of the Design Review Committee constitutes an act of the Design Review Committee. All approvals issued by the Design Review Committee must be in writing. Verbal approvals issued by the Design Review Committee, any individual Design Review Committee member or any other representative of the Association are not valid, are not binding on the Association and may not be relied on by any Person. If within six (6) months of issuance of the approval, an Owner either does not commence work pursuant to approved plans or obtain an extension of time to commence work, the approval shall be automatically revoked and a new approval must be obtained before work can be commenced.

5.5 NO WAIVER OF FUTURE APPROVALS. The Design Review Committee’s approval of any proposals, plans and specifications or drawings for any work done or proposed in connection with any matter requiring the Design Review Committee’s approval does not waive the right to withhold approval of any similar proposals, plans and specifications, drawings or matters subsequently or additionally submitted for approval.

5.6 COMPENSATION OF MEMBERS. The Design Review Committee’s members shall receive no compensation for services rendered, other than reimbursement for expenses incurred by them in performing their duties.

5.7 INSPECTION OF WORK. The Design Review Committee or its duly authorized representative may inspect any work for which approval of plans is required under this Article (“Work”). The right to inspect includes the right to require any Owner to take such action as may be necessary to remedy (including removal of) any noncompliance with the Design Review Committee-approved plans for the Work or with the requirements of this Declaration (“Noncompliance”).

5.7.1 Time Limit for Inspections. When the Work is complete, the Applicant shall immediately provide the Committee with written notice of completion on the

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form prescribed by the Committee. The Design Review Committee’s right to inspect the Work and notify the responsible Owner of any Noncompliance shall terminate on the date that is sixty (60) calendar days after the date on which the Committee has received written notice from the Applicant on a form provided by the Committee that the Work is complete. If the Design Review Committee fails to send a written notice of Noncompliance to an Applicant before this time limit expires, the Work shall be deemed to comply with the approved Application.

5.7.2 Noncompliance. If an Improvement that requires the prior approval of the Design Review Committee is (a) commenced or completed without prior written approval by the Committee, or (b) an Improvement is not completed within the time limit established by the Committee in its approval, or (c) an Improvement is not completed in substantial conformity with the approved Application, or (d) if no time limit is established by the Committee, the Applicant fails to complete the Work within one (1) year of the date on which the Application was approved, then a Noncompliance is deemed to exist, and then the Committee has the right, but not the obligation, to deliver a written notice of Noncompliance to the violating Owner, and the Association may, but is not required to, pursue the remedies set forth in this Section.

5.7.3 Remedy for Noncompliance. The Committee shall notify the Board in writing when an Owner fails to remedy any Noncompliance within sixty (60) days after the date of the notice of Noncompliance. After Notice and Hearing, the Board shall determine whether there is Noncompliance and, if so, the nature thereof and the estimated cost of correcting or removing the same. If a Noncompliance exists, the Owner shall remedy or remove the same within a period of not more than forty-five (45) days after the date that notice of the Board ruling is given to the Owner. If the Owner does not comply with the Board ruling within that period, the Association may record a Notice of Noncompliance (if allowed by law), correct the Noncompliance and charge the Owner for the Association’s costs, or commence an action for damages or injunctive relief, as appropriate, to remedy the Noncompliance.

5.8 VARIANCES. The Design Review Committee may authorize variances from compliance with any of the architectural provisions of this Declaration or the Design Guidelines including restrictions on height, size, floor area or placement of structures, or similar restrictions, when circumstances such as topography, natural obstructions, hardship, aesthetic or environmental consideration require. Variances must be evidenced in writing, must be signed by a majority of the Committee, and become effective on Recordation. After Declarant’s right to appoint a majority of the Design Review Committee’s members expires, the Board must approve any variance recommended by the Design Review Committee before any such variance becomes effective. If variances are granted, no violation of the covenants, conditions and restrictions in this Declaration shall be deemed to have occurred with respect to the matter for which the variances were granted. The granting of a variance does not waive any of the provisions of this Declaration for any purpose except as to the particular property and particular provision of this Declaration covered by the variance, nor does it affect the Owner’s obligation to comply with all laws affecting the use of the Owner’s Lot. The Committee’s written variance shall be Recorded against the Applicant’s Lot in the Official Records. The cost of Recording the variance shall be borne solely by the Applicant. No variance shall conflict with local ordinances or any specific plan for the Community without the prior written approval of the City.

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5.9 PRE-APPROVALS. The Design Review Committee may authorize preapproval of specified types of construction activities if, in the exercise of the Design Review Committee’s judgment, a pre-approval is appropriate to carry out the purposes of the Governing Documents.

5.10 APPEALS. If a proposed Improvement is disapproved, the Applicant is entitled to reconsideration by the Board of Directors at an open meeting that satisfies the requirements of Civil Code Section 4900, et seq. This paragraph does not require reconsideration of a decision that is made by the Board, or the Design Review Committee if the Committee has the same membership as the Board.

ARTICLE VI

PROPERTY EASEMENTS AND RIGHTS

6.1 EASEMENTS.

6.1.1 Maintenance and Repair. Declarant reserves for the benefit of the Association and all Association agents, officers and employees, nonexclusive easements over the Community as necessary to fulfill the obligations and perform the duties of the Association.

6.1.2 Utility Easements. Declarant reserves easements to install and maintain utilities over the Common Area for the benefit of the Owners and their Lots. Declarant reserves the right to grant additional easements and rights-of-way throughout the Community to utility companies and public agencies as it deems necessary for the proper development and disposal of the Community. Such right of Declarant shall expire on the Close of Escrow for the sale of the last Lot in the Community and the Annexable Territory.

6.1.3 Encroachments. Declarant reserves, for its benefit and for the benefit of all Owners and their Lots, a reciprocal easement appurtenant to each Lot over the other Lots and the Common Area to accommodate (a) any existing encroachment of any wall or any other Improvement installed by Declarant or approved by the Design Review Committee, and (b) shifting, movement or natural settling of the Residences or other Improvements. Use of the easements may not unreasonably interfere with each Owner’s use and enjoyment of the burdened Residences.

6.1.4 Easements for Public Service Use. Declarant reserves easements over the Community for public services of the Local Government Agencies, including but not limited to, the right of law enforcement and fire protection personnel to enter upon the Community to carry out their official duties.

6.1.5 Easements for Water and Utility Purposes. Declarant reserves easements over the Community for public and private utility purposes, including but not limited to, the right of any public utility or mutual water district of ingress and egress over the Community to read and maintain meters, and use and maintain fire hydrants.

6.1.6 Completion of Improvements. Declarant reserves the right and easement to enter the Community to complete any Improvement which Declarant considers desirable to implement Declarant’s development plan.

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6.1.7 Owners’ Easements in Common Area. Declarant reserves, for the benefit of every Owner, and each Owner’s Family, tenants and invitees, nonexclusive easements for pedestrian and vehicular access (all as applicable) over the Common Area in the Community as reasonably necessary for the use and enjoyment of each Lot in the Community. This easement is appurtenant to and passes with title to every Lot in the Community.

6.1.8 Community Wall Easements. Declarant reserves for the benefit of the Association the following easements:
(a) An easement over all Lots that are enclosed by a portion of the Community Wall, consisting of a three (3) foot-wide strip of land bounded on one side by the Residence-facing surface of the Community Wall, and extending along the entire length of that portion of the Community Wall that encloses the Lot, in order to accommodate the footings and other structural components of the Community Wall; and
(b) An easement for access over such Lots as reasonably necessary for maintaining the Community Walls and related Improvements. If a Community Wall is damaged, the Association shall have the right to enter upon the Lot as necessary to reconstruct the Community Wall in the easement area, and the easements reserved hereby shall continue in effect so long as the Community Wall remains in place.

6.1.9 Reserved for Declarant and the Annexable Territory. Declarant reserves for its benefit and for the benefit of the owners of Residences that may be constructed in the Annexable Territory (whether annexed to the Community or not) easements for pedestrian and vehicular access, including construction access, over all Common Area streets and sidewalks located within the Community.

6.1.10 Drainage Easements. Declarant reserves, for the benefit of the Community, the Owners and the Association, reciprocal nonexclusive easements for drainage of water over, across and on the Community.

6.1.11 Easements for Maintenance of Association Maintenance Areas.

Declarant reserves, for the benefit of the Association, nonexclusive easements over each Lot in Phase 1 as necessary for access and maintenance of Association Maintenance Areas described herein. No owner may interfere with the Association’s exercise of its rights under the easements reserved in this Section.

6.1.12 Telecommunications Easement. Declarant reserves blanket easements (collectively, “Telecommunications Easements”) over the Community for access and for purposes of constructing, installing, locating, altering, operating, maintaining, inspecting, upgrading, removing and enhancing Telecommunications Facilities (collectively, “Telecommunications Purposes”) for the benefit of Declarant. Such easements are freely transferable by Declarant to any other Person and their successors and assigns. No one, except for Declarant and Declarant’s transferees, may use the Community for Telecommunications Purposes. All Telecommunications Facilities shall be owned, leased or licensed by Declarant, as determined by Declarant, in its sole discretion and business judgment. Transfer of the Community does not imply transfer of any Telecommunications Easements or

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Telecommunications Facilities. The holders of the Telecommunications Easements may not exercise the rights reserved hereunder in any manner which will unreasonably interfere with the reasonable use and enjoyment of the Community by any Owner. If the exercise of any Telecommunications Easement results in damage to the Community, then the easement holder who caused the damage shall, within a reasonable period of time, repair such damage. If Declarant has not conveyed the Telecommunications Easements in a Phase to another Person before the last Close of Escrow in the Community and the Annexable Territory, then Declarant grants the Telecommunications Easements to the Association effective as of the last Close of Escrow in the Community and the Annexable Territory.

6.2 ADDITIONAL EASEMENTS. Declarant reserves easements over the Common Area owned in fee simple by the Association for the exclusive use by an Owner or Owners of contiguous property as a yard, recreational, gardening, and landscaping area. Subject to Section 4.2.3, any such easement may be conveyed by the Declarant before the last Close of Escrow for sale of a Lot in the Community and the Annexable Territory. Such conveyance must be approved by the Board, which approval must not be unreasonably withheld. The purpose of the easement, the portion of the Common Area affected, the Lot to which the easement is appurtenant, and any restrictions on use of the easement area shall be identified in a Recorded grant of easement.

6.3 DELEGATION OF USE. Any Owner may delegate his right to use the Common Area owned in fee simple by the Association in writing to his tenants, contract purchasers or subtenants who reside in such Owner’s Residence, subject to regulation by the Board.

6.4 RIGHT OF ENTRY.

6.4.1 Association. The Association has the right to enter the Lots to inspect the Community, and may take whatever corrective action it determines to be necessary or proper.

Entry onto any Lot under this Subsection may be made after at least three (3) days’ advance written notice to the Owner of the Lot except for emergency situations, which shall not require notice. Nothing in this Subsection limits the right of an Owner to exclusive occupancy and control over the portion of the Owner’s Lot that is not an Association Maintenance Area. Any damage to a Residence or Lot caused by entry under this Subsection shall be repaired by the Association.

6.4.2 Declarant. The Declarant has the right to enter the Lots and the Common Area (a) to comply with requirements for the recordation of subdivision maps or lot line adjustments in the Community or Annexable Territory, (b) for repair of Improvements in accordance with the provisions of the Right to Repair Law, (c) to accommodate grading or construction activities, and (d) to comply with requirements of applicable governmental agencies. Declarant shall provide the applicable Owner reasonable notice before such entry, except for emergency situations, which shall not require notice. Any damage to the Community that is caused by entry under this Subsection shall be repaired by the Declarant. Unless otherwise specified in the applicable initial grant deed by which Declarant has transferred ownership of the subject Lot or subject Common Property, this right of entry shall automatically expire on the later of the date that is twelve (12) years after the date of Recordation of this

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Declaration in the Official Records, or the date that is twelve (12) years after the date of Recordation of the grant deed by which Declarant first conveyed fee title to the subject real property under authority of a Public Report issued by the DRE.

6.4.3 Owners. Each Owner shall permit other Owners, and their representatives, to enter the Owner’s Lot to perform installations, alterations or repairs to the mechanical or electrical services to a Lot if (a) requests for entry are made in advance, (b) entry is made at a time reasonably convenient to the Owner whose Lot is to be entered; and (c) the entered Lot is left in substantially the same condition as existed immediately preceding such entry. Any damage to the Lot caused by entry under this Subsection shall be repaired by the entering Owner. In making such repair, the entering Owner shall not be responsible for costs beyond those necessary to repair or restore the damaged item to the condition it was in immediately prior to the damage.

ARTICLE VII

ASSOCIATION MAINTENANCE FUNDS AND ASSESSMENTS

7.1 PERSONAL OBLIGATION TO PAY ASSESSMENTS. Each Owner shall pay to the Association all Assessments established and collected pursuant to this Declaration.

The Association shall not levy or collect any Assessment that exceeds the amount necessary for the purpose for which it is levied. All Assessments, together with late payment penalties, interest, costs, and reasonable attorney fees for the collection thereof, are a charge and a continuing lien on the Lot against which such Assessment is made. Each Assessment, together with late payment penalties, interest, costs and reasonable attorney fees, is also the personal obligation of the Person who was the Owner of the Lot when the Assessment accrued. The personal obligation for delinquent Assessments may not pass to any new Owner (“Purchaser”) unless expressly assumed by the Purchaser or unless the Purchaser has actual or constructive knowledge of such delinquent Assessments, whether by virtue of the Recordation of a Notice of Delinquent Assessment or receipt from the Association of a certificate pursuant to California Civil Code Section 4525.

7.2 ASSOCIATION MAINTENANCE FUND ACCOUNTS. The Association shall establish separate Association Maintenance Fund accounts into which shall be deposited all money paid to the Association and from which disbursements shall be made, as provided in this Declaration. The Association Maintenance Fund accounts shall be established as trust accounts at a banking or savings institution and shall include: (a) an Operating Fund account for current Common Expenses, (b) an adequate Reserve Fund account for the portion of Common Expenses allocated to reserves for Improvements which the Board does not expect to repair or replace on an annual or more frequent basis; and (c) any other accounts which the Association may elect to establish. The Association shall require the bank or savings institution to send monthly account statements for all accounts directly to the Association. If a Manager is retained by the Association, then the Manager shall maintain records and bank accounts for the Association separate from other associations that use the Manager’s services, and the Manager shall have no authority to draw checks on, or transfer funds from, any Reserve Fund of the Association.

7.3 PURPOSE OF ASSESSMENTS. Annual Assessments shall be used exclusively to (a) promote the Owners’ recreation and welfare, (b) operate, improve and

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maintain the Common Property, and (c) discharge any other Association obligations under this Declaration. All amounts deposited into the general Operating Fund and general Reserve Fund must be used solely for the common benefit of all Owners as authorized by this Declaration.

Disbursements from any Operating Fund (including the general Operating Fund) generally shall be made by the Association to discharge Association responsibilities which cannot be discharged by disbursements from the corresponding Reserve Fund. However, if the Board determines that the general Operating Fund contains excess funds, the Board may transfer the excess funds to any other Association Maintenance Fund. Disbursements from the general Reserve Fund shall be made by the Association only for the purposes specified in this Article and in California Civil Code Sections 5510(b) and 5515, and only in accordance with California Civil Code Sections 5380, 5502, and 5510.

7.4 WAIVER OF USE. No Owner may exempt himself from personal liability for Assessments duly levied by the Association, nor release such Owner’s Lot from the liens and charges thereof, by waiving use and enjoyment of the Common Property or by abandoning such Owner’s Lot.

7.5 LIMITS ON ANNUAL ASSESSMENT INCREASES.

7.5.1 Maximum Authorized Annual Assessment For Initial Year of Operations. During the Fiscal Year in which Annual Assessments commence, the Board may levy an Annual Assessment per Lot in an amount that is more than twenty percent (20%) greater than the amount of Annual Assessments disclosed for the Community in the most current Budget filed with and reviewed by the DRE only if the Board first obtains the approval of Owners casting a majority of votes at a meeting or election of the Association in which more than fifty percent (50%) of the Lots are represented (“Increase Election”). This Section does not limit Annual Assessment increases necessary for addressing an “Emergency Situation” as defined in Section 7.5.5.

7.5.2 Maximum Authorized Annual Assessment For Subsequent Fiscal Years. During the Fiscal Years following the Fiscal Year in which Annual Assessments commence, the Board may levy Annual Assessments which exceed the Annual Assessments for the immediately preceding Fiscal Year only as follows:
(a) If the increase in Annual Assessments is less than or equal to twenty percent (20%) of the Annual Assessments for the immediately preceding Fiscal Year, then the Board must either (i) have distributed the Budget for the current Fiscal Year in accordance with California Civil Code Section 5300, or (ii) obtain the approval of Owners casting a majority of votes in an Increase Election; or (b) If the increase in Annual Assessments is greater than twenty percent (20%) of the Annual Assessments for the immediately preceding Fiscal Year, then the Board must obtain the approval of Owners casting a majority of votes in an Increase Election.

This Section does not limit Annual Assessment increases necessary for addressing an “Emergency Situation” as defined in Section 7.5.5.

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7.5.3 Supplemental Annual Assessments. If the Board determines that the Association’s essential functions may be properly funded by an Annual Assessment in an amount less than the maximum authorized Annual Assessment described above, it may levy such lesser Annual Assessment. If the Board determines that the estimate of total charges for the current year is or will become inadequate to meet all Common Expenses, it shall immediately determine the approximate amount of the inadequacy. Subject to the limits described in Sections 7.5.1, 7.5.2 and 7.5.5, the Board may levy a supplemental Annual Assessment reflecting a revision of the total charges to be assessed against each Lot.

7.5.4 Automatic Assessment Increases. Despite any other provisions of this Section 7.5, on Declarant’s annexation of the Annexable Territory pursuant to Article 16, the Annual Assessment shall be automatically increased by the additional amount, if any, necessary to maintain the Common Property identified in the Notice of Addition as a part of the Phase that includes the Annexable Territory so long as (a) the annexation is permitted by the DRE, and (b) the amount of such automatic increase does not exceed the maximum automatic increase allowed under California Civil Code Section 5605(b).

7.5.5 Emergency Situations. For purposes of Sections 7.5.1, 7.5.2 and 7.7, an “Emergency Situation” is any one of the following:
(a) An extraordinary expense required by an order of a court; (b) An extraordinary expense necessary to maintain the portion of the Community for which the Association is responsible where a threat to personal safety on the Community is discovered; and
(c) An extraordinary expense necessary to maintain the portion of the Community for which the Association is responsible that could not have been reasonably foreseen by the Board when preparing the Budget. Before imposing or collecting an Assessment pursuant to this subsection (c), the Board shall adopt a resolution containing written findings regarding the necessity of the extraordinary expense involved and why the expense was not or could not have been reasonably foreseen in the budgeting process. The resolution shall be distributed to the Owners with the notice of the assessment.

7.6 ANNUAL ASSESSMENTS.

7.6.1 Commencement of Annual Assessments. Except as provided below, Annual Assessments shall commence on all Lots in a Phase on the first day of the first calendar month following the first Close of Escrow in such Phase.

7.6.2 Assessment and Proration. Annual Assessments for fractions of a month shall be prorated. Declarant shall pay its full pro rata share of the Annual Assessments on all unsold Lots for which Annual Assessments have commenced. The Board shall fix the amount of the Annual Assessment against each Lot at least thirty (30) days in advance of each Annual Assessment period. However, unless otherwise established by the Board, the initial Annual Assessments shall be assessed in accordance with the most recent Budget on file with and reviewed by the DRE. Written notice of any change in the amount of any Annual Assessment, Capital Improvement Assessment or Reconstruction Assessment shall be sent via

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first-class mail to every Owner subject thereto not less than thirty (30) nor more than sixty (60) days before the increased Assessment becomes due.

7.6.3 Apportionment of Annual Assessments. All Annual Assessments shall be assessed uniformly and equally against the Owners and their Lots based on the number of Lots owned by each Owner, except as may be otherwise provided in a Supplemental Declaration. The Board may determine that funds in the Operating Fund at the end of the Fiscal Year be retained and used to reduce the following Fiscal Year’s Annual Assessments. On dissolution of the Association incident to the abandonment or termination of the Community as a planned development, any amounts remaining in any of the Association Maintenance Funds shall be distributed to or for the benefit of the Owners in the same proportions as such money was collected from the Owners.

7.6.4 Payment of Annual Assessments. Each Owner shall pay Annual Assessments in installments at such frequency, in such amounts and by such methods as are established by the Board. If the Association incurs additional expenses because of a payment method selected by an Owner, the Association shall charge the additional expenses to the Owner.

Each installment of Annual Assessments may be paid to the Association in one (1) check or in separate checks as payments attributable to specified Association Maintenance Funds. If any payment of an Annual Assessment installment (a) is less than the amount assessed and (b) does not specify the Association Maintenance Fund or Funds into which it should be deposited, then the amount received shall be credited in order of priority first to the Operating Fund, until that portion of the Annual Assessment has been satisfied, and second to the Reserve Fund.

7.7 CAPITAL IMPROVEMENT ASSESSMENTS. The Board may levy, in any Fiscal Year, a Capital Improvement Assessment or Reconstruction Assessment to defray, in whole or in part, the cost of any construction, repair or replacement of a capital Improvement or such other addition to the Common Property. No Capital Improvement Assessments in any Fiscal Year which, if added to the Capital Improvement Assessments already levied during such Fiscal Year, exceed five percent (5%) of the Association’s Budgeted gross expenses for such Fiscal Year, may be levied without the vote or written consent of Owners casting a majority of votes at an Increase Election. The Board may levy, in any Fiscal Year, a Capital Improvement Assessment applicable to that Fiscal Year which exceeds five percent (5%) of the Association’s Budgeted gross expenses for such Fiscal Year if such increase is necessary for addressing an Emergency Situation as defined in Section 7.5.5.

ARTICLE VIII

INSURANCE

8.1 DUTY TO OBTAIN INSURANCE; TYPES. The Association shall obtain and keep in effect at all times the following insurance coverages:

8.1.1 Commercial General Liability. A policy of commercial general liability insurance (including coverage for medical payments), insuring the Association and the Owners against liability for bodily injury, death and property damage arising from or relating to the ownership or use of the Common Property. Such policy shall specify amounts and include protection from liability and risks as are customarily covered in similar planned unit

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developments in the area of the Community, and shall include a severability of interest endorsement or the equivalent which shall preclude the insurer from denying the claim of an Owner because of negligent acts or omissions of other Owners, or the Association or the Association’s officers and directors acting in their capacity as officers and directors. The Association’s policies shall at all times specify limits no less than the minimum amounts required by California Civil Code Sections 5800 and 5805.

8.1.2 Fire and Casualty Insurance. Fire and casualty insurance with extended coverage, special form, without deduction for depreciation, in an amount at least equal to 100% of the replacement cost value of all insurable Improvements on the Common Area. The casualty insurance shall not include earthquake coverage unless the Board is directed to obtain earthquake coverage by a majority of the Association’s voting power.

8.1.3 Fidelity Bond Coverage. The Association shall maintain fidelity bond coverage for any Person handling funds of the Association, including Association officers, directors, employees, volunteers, and agents, and the Manager and its employees), whether or not such persons are compensated for their services, in an amount that is at least equal to or more than the combined amount of the reserves of the Association and three (3) months’ worth of Annual Assessments on all Lots in the Community. The Association’s fidelity bond shall also include coverage for computer fraud and funds transfer fraud. If the Association uses a Manager, then the Association’s fidelity bond coverage shall additionally include coverage for dishonest acts by the Manager and its employees. The bonds shall provide that they may not be cancelled or substantially modified (including cancellation for non-payment of premium) without at least 10 days’ prior written notice to the Association and each servicer of a Fannie Mae –held or –serviced Mortgage.

8.1.4 Requirements of Fannie Mae, Ginnie Mae, Freddie Mac and FHFA. Notwithstanding anything in the Governing Documents to the contrary, the amount, term and coverage of any policy of insurance required under this Article 8 (including the endorsements, the amount of the deductible, the named insureds, the loss payees, standard mortgage clauses, notices of changes or cancellations, and the insurance company rating) shall also satisfy the minimum requirements established for this type of development (if applicable) by Fannie Mae, Ginnie Mae, Freddie Mac and FHFA, and any successor to those entities, so long as any of those entities is a Mortgagee or Owner of a Lot in the Community, except to the extent such coverage is not reasonably available or has been waived in writing by the entity requiring the insurance coverage. If the above entities have not established requirements on any policy required hereunder, the term, amount and coverage of such policy shall, subject to Section 8.1.1 above, be no less than that which is customary for similar policies on similar projects in the area of the Community.

8.1.5 Other Insurance. Such other insurance insuring other risks customarily insured by associations managing planned unit developments similar in construction, location and use. Such additional insurance may include general liability insurance and director’s and officer’s errors and omissions insurance in the minimum amounts established in Section 5805 of the California Civil Code.

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8.1.6 Beneficiaries. The Association’s insurance shall be kept for the benefit of the Association, the Owners and the Mortgagees, as their interests may appear as named insureds, subject, however, to loss payment requirements established in this Declaration.

8.2 WAIVER OF CLAIM AGAINST ASSOCIATION. All policies of insurance kept by or for the benefit of the Association and the Owners must provide that the Association and the Owners waive and release all claims against one another, the Board and Declarant, to the extent of the insurance proceeds available, whether or not the insurable damage or injury is caused by the negligence or breach of any agreement by any of the Persons.

8.3 RIGHT AND DUTY OF OWNERS TO INSURE. Each Owner is responsible for insuring his personal property and all other property and Improvements on the Owner’s Lot for which the Association has not purchased insurance in accordance with Section 8.1. Nothing in this Declaration precludes any Owner from carrying any public liability insurance he considers desirable; however, Owners’ policies may not adversely affect or diminish any coverage under any of the Association’s insurance policies. Duplicate copies of Owners’ insurance policies shall be deposited with the Association on request. If any loss intended to be covered by the Association’s insurance occurs and the proceeds payable are reduced due to insurance carried by any Owner, such Owner shall assign the proceeds of the Owner’s insurance to the Association, to the extent of such reduction, for application to the same purposes as the reduced proceeds are to be applied.

8.4 NOTICE OF EXPIRATION REQUIREMENTS. If available, each of the Association’s insurance policies must contain a provision that the policy may not be canceled, terminated, materially modified or allowed to expire by its terms, without at least ten (10) days’ prior written notice to the Board and Declarant, and to each Owner and Mortgagee, insurer and guarantor of a First Mortgage who has filed a written request with the carrier for such notice and every other Person in interest who requests such notice of the insurer. In addition, fidelity insurance shall provide that it may not be canceled or substantially modified without at least ten (10) days’ prior written notice to any insurance trustee named pursuant to Section 8.5 and to each Fannie Mae servicer who has filed a written request with the carrier for such notice.

8.5 TRUSTEE FOR POLICIES. The Association is trustee of the interests of all named insureds under the Association’s insurance policies. Unless an insurance policy provides for a different procedure for filing claims, all claims must be sent to the insurance carrier or agent by certified mail and be clearly identified as a claim. The Association shall keep a record of all claims made. All insurance proceeds under any Association insurance policies must be paid to the Board as trustees. The Board has the authority to negotiate loss settlements with insurance carriers, with participation, to the extent the Board desires, of First Mortgagees who have filed written requests within ten (10) days of receipt of notice of any damage or destruction as provided in Section 9.4. The Board is authorized to make a settlement with any insurer for less than full coverage for any damage, so long as the Board acts in accordance with the standard of care established in this Declaration. Any two (2) officers of the Association may sign a loss claim form and release form in connection with the settlement of a loss claim, and such signatures are binding on all the named insureds. A representative chosen by the Board may be named as an insured, including a trustee with whom the Association may enter into an insurance trust agreement and any successor to such trustee, who shall have exclusive authority to

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negotiate losses under any insurance policy and to perform such other functions necessary to accomplish this purpose.

8.6 ACTIONS AS TRUSTEE. Except as otherwise specifically provided in this Declaration, the Board has the exclusive right to bind the Association and the Owners to all matters affecting insurance carried by the Association, the settlement of a loss claim, and the surrender, cancellation and modification of all such insurance. Duplicate originals or certificates of all policies of fire and casualty insurance kept by the Association and of all renewals thereof, together with proof of payment of premiums, shall be delivered by the Association to all Owners and Mortgagees who requested them in writing.

8.7 ANNUAL INSURANCE REVIEW. The Board shall review the Association’s insurance policies at least annually to determine the amount of the casualty and fire insurance referred to in Section 8.1. If economically feasible, the Board shall obtain a current appraisal of the full replacement value of the Improvements on the Common Property, without deduction for depreciation, from a qualified independent insurance appraiser, before each such annual review.

8.8 REQUIRED WAIVER. All of the Association’s insurance policies insuring against physical damage must provide, if reasonably possible, for waiver of:

8.8.1 Subrogation of claims against the Owners and tenants of the Owners;

8.8.2 Any defense based on coinsurance;

8.8.3 Any right of setoff, counterclaim, apportionment, proration or contribution due to other insurance not carried by the Association;

8.8.4 Any invalidity, other adverse effect or defense due to any breach of warranty or condition caused by the Association, any Owner or any tenant of any Owner, or arising from any act or omission of any named insured or the respective agents, contractors and employees of any insured;

8.8.5 Any right of the insurer to repair, rebuild or replace, and, if the Improvement is not repaired, rebuilt or replaced following loss, any right to pay under the insurance an amount less than the replacement value of the Improvements insured;

8.8.6 Notice of the assignment of any Owner of the Owner’s interest in the insurance by virtue of a conveyance of any Lot;

8.8.7 Any right to require any assignment of any Mortgage to the insurer;

8.8.8 Any denial of an Owner’s claim because of negligence or willful acts by the Association or other Owners; and

8.8.9 Prejudice of the insurance by any acts or omissions of Owners that are not under the Association’s control.

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ARTICLE IX

DESTRUCTION OF IMPROVEMENTS

9.1 RESTORATION OF THE COMMUNITY. Except as otherwise authorized by the Owners, if any portion of the Community which the Association is responsible for maintaining is destroyed, the Association shall restore the same to its former condition as promptly as practical and in accordance with applicable law and City codes and approvals, including plan checks, permits and fee payments. The Association shall use the proceeds of its insurance for reconstruction or repair of the Community unless otherwise authorized in this Declaration or by the Owners. The Board shall commence such reconstruction promptly. The Community shall be reconstructed or rebuilt substantially in accordance with the original construction plans if they are available, unless changes recommended by the Design Review Committee have been approved by the Owners. If the insurance proceeds amount to at least ninety percent (90%) of the estimated cost of restoration and repair, the Board shall levy a Reconstruction Assessment to provide the additional funds necessary for such reconstruction. If the insurance proceeds amount to less than ninety percent (90%) of the estimated cost of restoration and repair, the Board may levy a Reconstruction Assessment and proceed with the restoration and repair only if both of the following conditions (“Conditions To Reconstruction”) have been satisfied: (a) the levy of a Reconstruction Assessment to pay the costs of restoration and repair of the Community is approved by the Owners, and (b) within one (1) year after the date on which the destruction occurred, the Board Records a certificate of the resolution authorizing the restoration and repair (“Reconstruction Certificate”). If either of the Conditions to Reconstruction does not occur following a destruction for which insurance proceeds available for restoration and repair are less than ninety percent (90%) of the estimated cost of restoration and repair, then the Board shall deposit the funds in the Operating Fund.

9.2 DAMAGE TO RESIDENCES-RECONSTRUCTION. If all or any portion of any Residence or other Improvements on a Lot is damaged or destroyed by fire or other casualty, the Owner of the damaged Lot shall rebuild, repair or reconstruct the Residence and Improvements in accordance with all applicable laws and codes and in a manner which will restore them substantially to their appearance and condition immediately before the casualty or as otherwise approved by the Design Review Committee. If all or any portion of an Owner’s Lot is destroyed to such an extent that it would be impractical to restore the Lot or rebuild damaged Improvements, the Owner shall install landscaping Improvements on the Lot in accordance with Design Review Committee Guidelines. The Owner of any damaged Lot or Residence and the Design Review Committee shall proceed with all due diligence, and the Owner shall cause reconstruction or installation of landscape Improvements (as applicable) to commence within six (6) months after the damage occurs and to be completed within twelve (12) months after damage occurs, unless prevented by causes beyond such Owner’s reasonable control. The transfer of a damaged Lot or a Lot with a damaged Residence to another Person will not extend the time allowed in this Section for commencement and completion of reconstruction or installation of landscape Improvements by the transferee. However, no such transferee will be required to commence or complete reconstruction or installation of landscape Improvements in less than thirty (30) days from the date the transferee acquired title to the Lot.

9.3 INTERIOR DAMAGE. With the exception of any casualty or damage covered by insurance kept by the Association, restoration and repair of any damage to the interior of any

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individual Residence, including all fixtures, cabinets and improvements therein, together with restoration and repair of all interior paint, wall coverings and floor coverings, must be made by and at the individual expense of the Owner of the Residence so damaged. If a determination to rebuild the Community after partial or total destruction is made, as provided in this Article, such interior repair and restoration shall be completed as promptly as practical and in a lawful and workmanlike manner, in accordance with plans approved by the Design Review Committee as provided in this Declaration.

9.4 NOTICE TO OWNERS AND FIRST MORTGAGEES. The Board,
immediately on having knowledge of any damage or destruction affecting a material portion of the Common Area owned in fee simple by the Association, shall promptly notify all Owners and Mortgagees, insurers and guarantors of First Mortgages on Lots in the Community who have filed a written request for such notice with the Board.

ARTICLE X

EMINENT DOMAIN
The term “taking” as used in this Article means inverse condemnation by exercise of the power of eminent domain or by sale under threat of the exercise of the power of eminent domain.

The Board shall represent the Owners in any proceedings, negotiations, settlements, or agreements regarding takings. All takings proceeds shall be payable to the Association for the benefit of the Owners and their Mortgagees, and shall be distributed to such Owners and Mortgagees as provided in this Article.

10.1 CONDEMNATION OF COMMON AREA. If there is a taking of the Common Area owned in fee simple by the Association, then the award in condemnation shall be paid to the Association and shall be deposited in the Operating Fund.

10.2 CONDEMNATION OF LOTS. If there is a taking of a Lot, the award in condemnation shall be paid to the Owner of the Lot; however, such award shall first be applied to the balance then due on any Mortgages encumbering such Owner’s Lot, in order of priority.

10.3 NOTICE TO OWNERS AND FIRST MORTGAGEES. The Board, on learning of any condemnation proceeding affecting a material portion of the Common Area, or any threat thereof, shall promptly notify all Owners and those First Mortgagees, insurers and guarantors of First Mortgages on Lots in the Community who have filed a written request for such notice with the Association.

ARTICLE XI

RIGHTS OF MORTGAGEES

11.1 GENERAL PROTECTIONS. No amendment or violation of this Declaration defeats or renders invalid the rights of the Mortgagee under any Mortgage encumbering one (1) or more Lots made in good faith and for value, provided that after the foreclosure of any such Mortgage, the foreclosed Lot(s) will remain subject to this Declaration. For purposes of any provisions of the Governing Documents which require the vote or approval of a specified percentage of First Mortgagees, such vote or approval is determined based on one (1) vote for each Lot encumbered by each such First Mortgage.

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11.2 ADDITIONAL RIGHTS. In order to induce the VA, FHA, Freddie Mac, Ginnie Mae and Fannie Mae to participate in the financing of the sale of Lots, the following provisions are added hereto (and to the extent these added provisions conflict with any other provisions of the Governing Documents, these added provisions control):

11.2.1 Notices. Each Mortgagee, insurer and guarantor of a Mortgage encumbering one (1) or more Lots, upon filing a written request for notification with the Board, is entitled to written notification from the Association of: (a) any condemnation or casualty loss which affects either a material portion of the Community or the Lot(s) securing the respective First Mortgage; (b) any delinquency of sixty (60) days or more in the performance of any obligation under the Governing Documents, including the payment of Assessments or charges owed by the Owner(s) of the Lot(s) securing the Mortgage, which notice each Owner hereby consents to and authorizes; and (c) a lapse, cancellation, or material modification of any policy of insurance or fidelity bond kept by the Association.

11.2.2 Right of First Refusal. Each Owner who obtains title to a Lot (including a First Mortgagee who obtains title to a Lot pursuant to (a) the remedies provided in such Mortgage, (b) foreclosure of the Mortgage, or (c) deed or assignment in lieu of foreclosure), is exempt from any “right of first refusal” created or purported to be created by the Governing Documents.

11.2.3 Unpaid Assessments. If the First Mortgagee of a Lot obtains fee title to the Lot either by foreclosure or by any other remedy provided under the Mortgage, then the Mortgagee shall take title to the Lot free and clear of any claims for unpaid Assessments or charges against the Lot to the extent the Assessments or charges accrued before the date on which the Mortgagee acquired title to the Lot.

11.2.4 Association Records. All Mortgagees, insurers and guarantors of First Mortgages, on written request to the Association, shall have the right to:
(a) examine current copies of the Association’s books, records and financial statements and the Governing Documents during normal business hours; (b) receive written notice of all meetings of Owners; and (c) designate in writing a representative who shall be authorized to attend all meetings of Owners.

11.2.5 Payment of Taxes. First Mortgagees may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge against any Common Area property and may pay any overdue premiums on hazard insurance policies, or secure new hazard insurance coverage on the lapse of a policy, for Common Area, and the Association shall immediately reimburse First Mortgagees who made such payments.

11.2.6 Intended Improvements. All intended Improvements in any Phase must be substantially completed or the completion of such Improvements must be secured by a bond or other arrangement acceptable to the DRE before the first Close of Escrow in such Phase.

All intended Improvements in any Phase other than Phase 1 shall be substantially consistent with

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the Improvements in Phase 1 in structure, type and quality of construction. The requirements of this Section are for the benefit of and may be enforced only by Fannie Mae.

11.2.7 Contracts. The Board may enter into such contracts or agreements on behalf of the Association as are required in order to satisfy the guidelines of the VA, FHA, Freddie Mac, Ginnie Mae, Fannie Mae or any similar entity, so as to allow for the purchase, insurance or guaranty, as the case may be, by such entities of First Mortgages encumbering Lots improved with Residences. Each Owner hereby agrees that it will benefit the Association and the Owners, as a class of potential Mortgage borrowers and potential sellers of their Lots, if such agencies approve the Community as a qualifying subdivision under their respective policies, rules and regulations. Each Owner hereby authorizes his Mortgagees to furnish information to the Board concerning the status of any Mortgage encumbering a Lot.

ARTICLE XII

ENFORCEMENT AND DISPUTE RESOLUTION

12.1 ENFORCEMENT OF GOVERNING DOCUMENTS. All violations of the Governing Documents, except for those governed by Sections 12.2 or 12.3, shall be resolved in accordance with this Section 12.1. Disputes, claims and controversies subject to the Right to Repair Law are not subject to this Section 12.1, but shall be resolved in accordance with Declarant’s dispute resolution process described in Section 12.4 below.

12.1.1 Right to Enforce. The Board, the Association, the Declarant and any Owner may enforce the Governing Documents as described in this Article, subject to Sections 5900, et seq., and 5925, et seq. of the California Civil Code. Each Owner has a right of action against the Association for the Association’s failure to comply with the Governing Documents.

Each remedy provided for in this Declaration is cumulative and not exclusive or exhaustive. The City shall have the right, but not the obligation, to enforce any provision of this Declaration.

12.1.2 Violations Identified by the Association. If the Board or the Design Review Committee determines that there is a violation of the Governing Documents, other than nonpayment of any Assessment, then the Board shall give written notice to the responsible Owner identifying (a) the condition or violation complained of, and (b) the length of time the Owner has to remedy the violation including, if appropriate, the length of time the Owner has to submit plans to the Design Review Committee and the length of time the Owner has to complete the work proposed in the plans submitted to the Design Review Committee. This requirement shall apply notwithstanding the fact that this Declaration may duplicate City ordinances or regulations. If an Owner does not perform corrective action within the allotted time, the Board, after Notice and Hearing, may remedy such condition or violation complained of, and the cost thereof shall be charged to the Owner as a Special Assessment. If the violation involves nonpayment of any Assessment, then the Board may collect such delinquent Assessment pursuant to the procedures established in Section 12.2.

12.1.3 Violations Identified by an Owner. If an Owner alleges that another Person is violating the Governing Documents (other than nonpayment of any Assessment), the complaining Owner must first submit the matter to the Board for Notice and Hearing before the