Scottsdale Shadows - Amended and Restated Declaration of … · 2017-08-11 · Scottsdale Shadows...

Scottsdale Shadows – Regime IV CC&R’s

Amended and Restated Declaration of Covenants, Conditions, and Restrictions

for Scottsdale Shadows IV, Inc.

THIS AMENDED AND RESTATED DECLARATION, made as of the date hereinafter by Scottsdale Shadows IV Inc.,(“Association) an Arizona non-profit corporation. WITNESSETH: WHEREAS, Declarant was the former owner of the following described real property situated in the City of Scottsdale, County of Maricopa, and State of Arizona: That portion of the Southeast quarter of the Northeast quarter of Section 23, Township 2 North, Range 4 East of the G&SRB&M more particularly described as follows: COMMENCING at the Southwest corner of the Southeast quarter of the Northeast quarter of said Section 23; thence South 89 degrees 59 minutes 55 seconds East (an assumed bearing) along the South line of the Southeast quarter of the Northeast quarter of said Section 23 for a distance of 356.20 feet; thence North 00 degrees 00minutes 05 seconds East, a distance of 156.65 feet; thence North 45 degrees 00 minutes 06 seconds East, a distance of 211.46 feet; thence North 44 degrees 59 minutes 54 seconds West, a distance of 355.33 feet to the true point of beginning; thence continuing North 44 degrees 59 minutes 54 seconds West, a distance of 270.33 feet; thence North 45 degrees 00 minutes 06 seconds East, a distance of 79.67 feet; thence North 44 degrees 59 minutes 54 seconds West; a distance of 100.00 feet; thence North 45 degrees 00 minutes 06 seconds East, a distance of 284.67 feet; thence South 44 degrees 59 minutes 54 seconds East, a distance of 370.33 feet; thence South 45 degrees 00 minutes 06 seconds West, a distance of 364.33 feet to the true point of beginning. Also described as SCOTTSDALE SHADOWS IV according to Plats recorded in Book 211 of Maps, page 19 et seq., records of Maricopa County, Arizona, and attached hereto as Exhibits A through M (hereinafter sometimes called the “Parcel”); and WHEREAS, Declarant previously submitted and subjected the Parcel to a condominium association pursuant to Section 33-1201 through 33-1270 of the, Arizona Revised Statutes; and WHEREAS, Declarant desired to establish for the Association’s benefit and for the mutual benefit of all current and future owners of the Property (as hereinafter defined), or any part thereof, certain easements and rights in, over and upon said Property and certain mutually beneficial restrictions and obligations with respect to the proper use, conduct and maintenance thereof; and


WHEREAS, Declarant desired and intended that the Unit Owners, acquiring any interest in the Property shall at all times enjoy the benefits of, and shall hold their interests subject to, the rights, easements, privileges and restrictions hereinafter set forth, all of which shall run with the land and be binding upon the said Property and all parties having or acquiring any right, title, or interest in or to said Property, or any part thereof, and shall inure to the benefit of each owner thereof, and all of which are declared to be in furtherance of a plan to promote and protect the cooperative use, conduct and maintenance of such Property and are established for the purpose of enhancing and perfecting the value, desirability and attractiveness thereof. NOW, THEREFORE, the Association, amends and restates the Declaration as follows: 1. Definitions. As used herein, unless the context otherwise requires: 1.1 “Act” means Arizona’s Condominium Act

1.2 “Association” means Scottsdale Shadows IV, Inc., an Arizona nonprofit “HOA”.

1.3 “Building” means each building located on the Parcel which constitute or are to constitute a part of the Property. Two Buildings as shown on the Plat attached hereto as Exhibit A, designated on such Plat as Building 26 and Building 27, which Buildings seven and six structural stories above the ground floor, respectively, contain 80 and 62 Units, respectively, and various mechanical and equipment rooms, further described on such Plat. 1.4 “Common Elements” means all portions of a condominium other than the units including without limitation the Parcel, the roofs of the Buildings, any laundry rooms, storage rooms, mechanical rooms, central air conditioning/heating system (excluding any portion of such system which exclusively serves each unit), Guest Parking Spaces not assigned to any Unit, driveways, landscaping of the Common Elements, and all other portions of the Property, except the Units.

1.5 "Limited common element" means a portion of the common elements specifically designated as a limited common element in the declaration and allocated by the declaration or by operation for the exclusive use of one or more but fewer than all of the units. 1.6 “Communal Area” means all of the properties now or hereafter owned and held by Recreational Center, Inc., its successors and assigns for the common use and enjoyment of its members, including but not limited to such things as driveways and parking areas maintained by Recreational Center, Inc., walk areas, lighting fixtures, concessions, rights-of-way, easements, bicycle paths, pedestrian trails, a golf course, tennis courts maintained by Recreational Center, Inc., pool and other recreational areas


and facilities, pumps, trees, landscaping of the Communal Areas, streets, pipes, wire, conduits and other utility lines. 1.7 “Declaration” means this instrument by which the property is subject, as from time to time amended. 1.8 “Majority” or “Majority of Owners” means the Owners of Units to which more than fifty percent (50%) of the undivided ownership of the Common Elements is appurtenant, irrespective of the total number of Owners. 1.9 “Occupant” means a person or persons, other than an Owner, in rightful possession of a Unit. 1.10 “Owner” means the record owner according to the deed recorded in the Maricopa County Recorder’s office. 1.11 “Parcel” means the parcel or tract of real estate described above in this Declaration, which is hereby submitted to this Declaration. 1.12 “Parking Space” means each of the separate parking spaces in the underground parking garage as shown on the Plat attached hereto as Exhibit B or in any outside parking area established from time to time by the Association. “Restricted Parking Space” means each Parking Space or spaces in the underground parking garage. “Guest Parking Space” means any Parking Space in any outside parking area maintained by .Recreational Center, Inc. 1.13 “Person” means a natural individual, corporation, partnership, trustee or other entity capable of holding title to real property. 1.14 “Plats” means the various plats of survey of the Property, as hereinbefore and hereinafter more fully described and identified, all of which are attached hereto as Exhibits A through M and are incorporated fully herein by this reference, said plats having been recorded in the Records of Maricopa County, Arizona. 1.15 “Property” means the Parcel, the Buildings and the Units comprising the Association, together with all buildings, improvements and other permanent fixtures of whatsoever kind thereon, all rights and privileges belonging or in any way pertaining thereto and all furniture, furnishings, fixtures, machinery, equipment, and appliances and personal property located thereon, intended for the mutual use, benefit and enjoyment of the Owners

1.16 “Record” or “Recording” refers to record or recording in the office of the County Recorder of Maricopa County, Arizona.


1.17 Rules and Regulations means the rules and regulations, that may be adopted, amended, and repealed from time to time by the Board of Directors. The Rules may, among other things, restrict and govern the use of the Units and the Common Elements.

1.18 “Apartment Unit” (hereinafter sometimes called “Unit”) means each of the 142 portions of the Property contained in the Buildings which consist of one or more rooms and any patio or balcony designed or intended for independent use as a dwelling unit, as shown on the Plats attached hereto as Exhibit R. 1.19 Board of Directors (herein sometimes called “Board”) means the elected representatives of the Association. 2. Submission of Property. Association hereby submits and subjects the Property to this Declaration and subject to Arizona’s Condominium Act.,The Association shall be known as SCOTTSDALE SHADOWS IV, INC., an Arizona Non-Profit HOA Corporation. The Association does hereby declare that all of the Units shall be owned, leased, sold, conveyed and encumbered or otherwise held or disposed of subject to the terms, conditions and other provisions of this Declaration. 3. Description of the Building, the Units and the Common Elements. The entire horizontal property regime shall be constituted of the Common Elements and the Units. 3.1 Buildings. There are two (2) Buildings in the property known as Building 26 and Building 27. Reference is hereby made to the Plats for a description of the cubic content space for each of the Buildings and its location on the Parcel. 3.2 Units. There are a total of 142 Units in the Buildings. Reference is hereby made to the Plats attached hereto as Exhibits C through M, for a description of the cubic content space of each Unit and its location within the Buildings. Each Unit shall include the space enclosed and bounded by the interior unfinished surfaces of the ceiling or any extension of the elevation thereof, floor and any extension of the elevation thereof, perimeter walls and windows thereof (or, if there is no perimeter wall, then the interior boundary thereof), and the patio or balcony fences or any extension of the vertical interior surface thereof, together with any portion of the central air-conditioning/heating system which exclusively serves such Unit; provided, however, that no portion of the roof, bearing walls or other structural components of the Building in which each Unit is located, and no pipes, wires, conduits, ducts, flues, shafts, or public utility, water or sewer lines situated within such Unit and forming part of any system serving one or more other Units or the Common Elements shall be deemed to be a part of a Unit. 3.3 Common Elements. A description of the Common Elements included in and comprising parts of each Building is the description referred to in subparagraph 3.1 less the descriptions of the Units referred to in subparagraph 3.2. A description of the other Common elements is as set forth in subparagraph 1.4.


3.4 Interest in the Common Elements. The percentage interest which each Unit bears to the entire condominium association which interest shall constitute an (1/120th) undivided interest in the Common Elements which is appurtenant to each such Unit, shall be as provided in Exhibit O attached hereto. 4. Association. The Association shall form a “Board of Directors” or sometimes referred to “Council of Co-Owners”, to serve as the governing body for all of the Owners and shall have the general management powers to act on behalf of the Association, as more fully set forth in this Declaration, in the Articles of Incorporation of the Association (hereinafter termed the “Articles”) and in the Bylaws of the Association (hereinafter called the “Bylaws”). Upon accepting a Deed within the Association, each Owner shall acquire a membership and interest in Recreational Center, Inc. as provided in Article VI of the Articles of Incorporation and Article I of the Bylaws of such Recreational Center, Inc., and shall perform all obligations of membership therein and pay all assessments levied thereafter by Recreational Center, Inc. against the Association. In the event of any conflict between the provisions of this Declaration and the Articles of Incorporation, By-Laws or rules and regulations of Recreational Center, Inc., the provisions of this Declaration shall prevail. The Association shall not be deemed to be conducting a business of any kind, and all funds received by the Association shall be held and applied by it for the Owner in accordance with the provisions of this Declaration, the Articles and the Bylaws. Each Owner shall be a Member of the Association as soon and so long as he shall be an Owner. Such membership shall automatically terminate when an Owner ceases for any reason to be an Owner, and the new Owner shall likewise automatically succeed to such membership in the Association. A membership in the Association shall not be transferred, pledged or alienated in any way, except upon the sale of the Unit to which it appertains (and then only to such purchaser) or by intestate succession, testamentary disposition, foreclosure of a mortgage of record or other legal process transferring fee simple title to such Unit (and then only to the Person to whom such fee simple title is transferred pursuant to the recorded deed in the Maricopa County Recorder’s Office). Any attempt to make a prohibited transfer of a membership is void and will not be recognized by or reflected upon the books and records of the Association. 4.1 There shall be one voting class. Each Owner shall receive one apportioned vote for each Unit owned. If a Unit is owned by more than one person, the vote must be cast as a Unit. Each Owner shall be entitled to 1 vote per candidate or one vote per issue at a meeting either in person or by absentee ballot. 4.2 Qualification of Directors. Each director shall be a Record Owner (or if an Owner is a corporation, partnership or trust, a director may be an officer, partner, director or beneficiary of the a corporation, partnership or trust, so long as that individual is at least eighteen (18) years of age, as designated in writing by said Owner). If a director shall cease to meet such qualifications during his term, he will thereupon cease to be a director, and his place on the Board shall be deemed vacant.


4.3 Board’s Determination Binding. In the event of any dispute or disagreement between any Owners relating to the Property, or any question of interpretation or application of the provisions of this Declaration, the Articles or the Bylaws, the determination thereof by the Board shall be final and binding on each and all of such Owners; 4.4 Action by Owners. To the extent permitted by the Act, and the Declaration, all actions required to be taken by the Board of Directors, shall be taken by a vote of the majority of the Board of Directors at a meeting which quorum is present. 4.5 Recreational Center, Inc. The Board of Directors, pursuant to Article VI of the Articles of Incorporation and Article I Section 3 of the Bylaws of Recreational Center, Inc., shall be empowered to designate three members of the Board as a representatives, Of the three member representatives, only one member can vote the membership of the Board of Directors in all actions and all decisions required by such Council in connection with its membership in Recreational Center, Inc. The remaining two are non-voting alternates. The Board may meet and determine to the extent it considers appropriate how said designated director shall vote such membership on any issue or item, but said director shall be free to and shall act in accordance with his own best judgment on all other matters. 4.6 Additional Provisions in Articles of Incorporation and Bylaws of the Association. The Articles of Incorporation and Bylaws of the Association may contain any provision not inconsistent with law or with this Declaration relating to the conduct of the affairs of the Association and the rights and powers of its directors, officers, employees, agents and members. However, in the case of conflict between the Declaration, Articles of Incorporation and Bylaws, the terms of the Declaration control. 5. Use of Common Elements. Each Owner shall have the non-exclusive right to use the Common Elements and Communal Areas in common with all other Owners as may be required for the purposes of access and ingress and egress to and from and the use, occupancy and enjoyment of the respective Unit owned by such Owner and of the Common Elements and Communal Areas for their intended purposes, as herein provided. Such right shall extend to each occupant and the agents, servants, tenants, family members and invitees of each Owner. Such right shall be subject to such reasonable limitations and restrictions as may from time to time be promulgated by the Board, and shall be subject to and governed by the provisions of this Declaration, the Articles and the Bylaws. In the event any Owner leases a Unit or Units, the lessee shall be entitled to exercise the Owner’s rights to use the Common Elements and Communal Areas for their intended purposes during the term of such lease, and with respect to any Unit or Units so leased, said Owner shall have no rights to use said Common Elements and Communal Areas. The Board shall have authority to lease, convey easements or grant concessions consistent with the overall character and use of the Property with respect to parts of the Common Elements or to change the character, description and use thereof, subject to the provisions of this Declaration, the Articles and the Bylaws. Any income derived by the Association from leases, concessions or other sources shall


be held and used for the benefit of the members of the Association pursuant to such rules, resolutions or regulations as the Board may adopt, amend or repeal. 6. Parking Spaces. There shall be two types of Parking Spaces, called “Restricted Parking Spaces” and “Guest Parking Spaces.” Each Restricted Parking Space is a separate taxable property with its own parcel number assigned by Maricopa County. 6.1 Restricted Parking Spaces. Restricted Parking Spaces may be, leased, mortgaged or otherwise assigned and used apart from the ownership of any Unit, and the Owner or other person legally entitled to the use of any Restricted Parking space shall be entitled to reasonable access thereto and to the use thereof for parking purposes, subject to such Rules and Regulations as may be adopted by the Board of Directors from time to time. Every Owner of a Unit shall be required to own at all times at least one (1) Restricted Parking Space for each Unit owned by him. An Owner may sell or otherwise convey his Restricted Parking Space only if such Owner owns more than one Restricted Parking Space. An Owner may sell or convey such space to Scottsdale Shadows IV Owners only. No Restricted Parking Space shall be sold, leased, mortgaged or assigned to or otherwise used by any person who is not then the Owner, or Mortgagee of a Unit in any condominium association existing on the real property described in the Plat attached hereto as Exhibit B. In the event any Owner leases any unit to a lessee, the lessee shall have the right to use the Restricted Parking Space owned by the Owner in connection with the Unit subject to the lease, and during the term of the lease, the Owner shall have no right to use any Restricted Parking Space, or Guest Parking Space, owned in connection with such leased Unit. A complete list of the names and addresses of persons owning, leasing or otherwise entitled to use Restricted Parking Spaces shall be maintained by the Association at all times, and the Association may exclude from any Restricted Parking Space any person who is not so listed. Any conveyance of any Restricted Parking Space may be by deed, lease or other instrument and may be separately recorded, specifying the number or other designation of such Restricted Parking Space as shown on the Plat attached hereto as Exhibit B. 7. Common Expenses. Each Owner shall pay his proportionate share of the expenses of the administration and operation of the Common Elements and of any other expenses incurred in conformance with this Declaration, the Articles and the Bylaws (which expenses are herein sometimes referred to as “Common Expenses”), including specifically, but not by way of limitation, insurances, the maintenance and repair of the Common Elements and any and all replacements and additions thereto, and reasonable reserves for contingencies, replacements or other proper purposes. The Association shall maintain an adequate reserve for replacement of the Common


Elements and, for a period of one (1) year from and after the sale and delivery of the first Unit, shall maintain a working capital fund equal to at least two (2) months estimated Common Expenses of the Association, or such greater amount and for such longer period as the Board of Directors may determine from time to time. The expenses of the administration and operation of the Common Elements shall also include any assessments of the Owners for the Communal Areas. The assessments for the Communal Areas are further defined and set forth in Article XIII of the Articles of Incorporation and Articles I and VI of the Bylaws of Recreational Center, Inc. Each Owner’s proportionate share of such Common Expenses shall be the same as the fractional undivided interest in the Common Elements appurtenant to his Unit as provided in paragraph 3.4 . Payment of Common Expenses, including any prepayment thereof required by contract for sale of a Unit, shall be in such amounts, at such times and in such manner as may be provided in the Articles and Bylaws or determined by the Board of Directors of the Association. Such payment, together with late fees, costs, and reasonable attorney’s fees, shall constitute the personal obligation of the person who was the Owner of such Unit at the time such payment fell due. The personal obligation for delinquent payments shall not pass to an Owner’s successor in title unless expressly assumed by him. If any Owner shall fail or refuse to make any such payment of Common Expenses when due, the amount thereof, together with interest, costs, late fees and reasonable attorney’s fees, shall constitute a lien on such Owner’s Unit and on any rents or proceeds therefrom; provided, however, that such lien shall be subordinate to the lien of a prior recorded First Mortgage on the applicable Unit, acquired in good faith and for value, except for the amount of the unpaid Common Expenses which accrues from and after the date on which such First Mortgagee acquires title of the applicable Unit, and if any lien for unpaid assessments prior to such date has not been extinguished by the process by which such First Mortgagee acquired such title or possession, such First Mortgagee shall not be liable for such unpaid assessments. Any person acquiring an interest in any Unit shall be entitled to a statement from the Association setting forth the amount of unpaid assessments, if any, and such person shall not be liable for, nor shall any lien attach to such Unit in excess of, the amount set forth in such statement, except for assessments which occur or become due after the date thereof. The lien provided for in this paragraph may be foreclosed by the Association in any manner provided or permitted for the foreclosure of realty mortgages or deeds of trust in the State of Arizona.

The Association may levy a special assessment for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement of the Common Elements, including fixtures and personal property related thereto, or for any other lawful Association purpose, provided that any Special Assessment (other than a Special Assessment levied pursuant to Section 9.1) as a result of the damage or destruction of all or part of the Common Elements) shall have first been approved by the majority of the Board of Directors with respect to the Special Assessment. Unless otherwise specified by the Board of Directors, Special


Assessments shall be due thirty (30) days after they are levied by the Association and notice of the Special Assessment is given to the Owners.

Any Assessment, or any installment of an Assessment, which is not paid within fifteen (15) days after the Assessment first became due shall be deemed delinquent and shall bear interest from the date of delinquency at the rate of interest established from time to time by the Board of Directors. If any Assessment, or any installment thereof, is not paid within fifteen (15) days after the Assessment first became due, the Association may assess against the delinquent Unit Owner a late fee in the amount established from time to time by the Board of Directors.

All Assessments, monetary penalties and other fees and charges imposed or levied against any Unit or Unit Owner shall be secured by the Assessment Lien as provided for in the Condominium Act. The recording of this Declaration constitutes record notice and perfection of the Assessment Lien, and no further recordation of any claim of lien shall be required. Although not required in order to perfect the Assessment Lien, the Association shall have the right but not the obligation, to record a notice setting forth the amount of any delinquent Assessments, monetary penalties or other fees or charges imposed or levied against a Unit or the Unit Owner which are secured by the Assessment Lien. The Assessment Lien shall have priority over all liens, other interests and encumbrances except for: (a) liens and encumbrances Recorded before the recording of this Declaration; (b) liens for real estate taxes and other governmental assessments and charges; and (c) the lien of any First Mortgage or seller's interest in a first contract for sale recorded prior to the Assessment Lien. Any First Mortgagee or any other Person acquiring title or coming into possession of a Unit through foreclosure of the First Mortgage, purchase at a foreclosure sale or trustee’s sale, or through any equivalent proceedings, such as, but not limited to, the taking of a deed in lieu of foreclosure shall acquire title free and clear of any claims for unpaid Assessments and charges against the Unit which became payable prior to the acquisition of such Unit by the First Mortgagee or other Person. Any assessments and charges against the Unit which accrue prior to such sale or transfer shall remain the obligation of the defaulting Unit Owner.

The Association shall have the right, at its option, to enforce collection of any delinquent Assessments, monetary penalties and all other fees and charges owed to the Association in any manner allowed by law including, but not limited to: (a) bringing an action at law against the Unit Owner personally obligated to pay the delinquent amounts and such action may be brought without waiving the Assessment Lien securing any such delinquent amounts; or (b) bringing an action to foreclose the Assessment Lien against the Unit in the manner provided by law for the foreclosure of a realty mortgage. The Association shall have the power to bid in at any foreclosure sale and to purchase, acquire, hold, lease, mortgage and convey any and all Units purchased at such sale


8. Transfer Fee. Except as provided in subsection (b) below, each Person or entity who/that purchases or otherwise becomes the Owner of a Unit, whether by Deed, by a Trustee’s deed upon Sale, by a Deed in Lieu of Foreclosure, or any similar means, on or after the recording date of this Amendment, shall pay to the Association, immediately upon becoming the Owner of the Lot, a Transfer Fee in an amount determined by the majority of the Board of Directors. The amount of the Transfer Fee may be increased or decreased by the Board from time to time after this amendment is recorded, but the amount of the Transfer fee shall not increase by more than 20% during any twelve month period without the approval of Members holding more than fifty percent (50%) of the votes in the Association. (b) No Transfer Fee shall be payable with respect to: (i) the transfer or conveyance of a Lot by device or intestate succession; (ii) a transfer or conveyance of a Lot for estate planning purposes; or (iii) a transfer or conveyance to a corporation, partnership or other entity in which the grantor owns a majority interest unless the Board determines, in its sole discretion, that a material purpose of the transfer or conveyance was to avoid payment or the Transfer Fee in which event a Transfer Fee shall be payable with respect to such transfer or conveyance.

(c) All Transfer Fees shall be deposited in the Reserve Fund or Operating Account, not commingled with any other funds of the Association, and shall be deemed a contribution to the capital of the Association. Transfer Fees shall be non-refundable and shall not be considered as an advance payment of assessments.

(d) Transfer Fees shall be used by the Association as required by Arizona revised statute 33-442 for the following purposes: (i)for the construction or installation of buildings on the Common Elements or for additions, repairs, maintenance or other improvements to existing buildings or other improvements on the Common Elements; (ii) for the Association’s reserves (iii) to compensate the Association for the administrative costs resulting from the transfer of a Unit, but the fee is not intended to compensate the Association for the costs incurred in the preparation of the statement which the Association is required to mail or deliver to a purchaser under A.R.S. §33-1260A and, therefore, the transfer fee shall be in addition to the fee which the Association is entitled to charge pursuant to A.R.S. §33-1260C. All of the expenditures of the Transfer Fee as herein provided are hereby deemed and shall be construed to touch and concern the land which is appurtenant to the title of each and every Unit.

9. Insurance Requirements Scope of Coverage

The Association shall maintain, to the extent reasonably available, the following insurance coverage in compliance with A.R.S. 33-1253:


(a) A special form policy of property insurance with sprinkler leakage (if applicable), debris removal and water damage endorsements, insuring the entire Condominium, except for: (i) additions, alterations and improvements supplied or installed by the Unit Owners; and (ii) furniture, furnishings or other personal property of the Unit Owners. Such property insurance shall cover the interests of the Association, the Board of Directors and all Unit Owners and their mortgagees, as their interests may appear (subject, however, to the loss payment adjustment provisions in favor of an Insurance Trustee), in an amount equal to one hundred percent (100%) of the then current replacement cost of the Condominium (exclusive of the land, excavations, foundations and other items normally excluded from such coverage), without deduction for depreciation. The replacement cost shall be reviewed annually by the Board of Directors with the assistance of the insurance company affording such coverage. The Board of Directors shall also obtain and maintain such coverage on all personal property owned by the Association.

(b) Broad form comprehensive general liability insurance, for a limit to be determined by the Board, but not less than $1,000,000 for any single occurrence and Umbrella or Excess Liability Coverage in an amount not less than $2,000,000. Such insurance shall cover all occurrences commonly insured against for death, bodily injury and property damage arising out of or in connection with the use, ownership or maintenance of the Common Elements. Such policy shall include (i) a cross liability clause to cover liabilities of the Owners as a group to an Owner, and (ii) medical payments insurance and contingent liability coverage arising out of the use of hired and non-owned automobiles.

(c) Workmen’s compensation insurance to the extent necessary to meet the requirements of the laws of Arizona and, if the Association has any employees, a policy of employer’s liability insurance with coverage limits determined by the Board of Directors.

(d) Directors’ and officers’ liability insurance in an amount not less than $1,000,000 covering all the directors and officers of the Association.

(e) Such other insurance as the Association shall determine from time to time to be appropriate to protect the Association, the members of the Board of Directors, the members of any committee or the Board of Directors or the Unit Owners, including, without limitation, umbrella general liability insurance which would provide general liability coverage in excess of the coverage provided by the policy to be obtained pursuant to Subsection 8.1.1(b).

(f) The insurance policies purchased by the Association shall, to the extent reasonably available, contain the following provisions:

(i) Each Unit Owner shall be insured under the policy with respect to liability arising out of his ownership of an undivided interest in the Common Elements or his membership in the Association.


(ii) There shall be no subrogation with respect to the Association, its agents, servants, and employees against Unit Owners and members of their household, except for claims against Unit Owners by members of their households for employee dishonestly or forgery.

(iii) No act or omission by any Unit Owner, unless acting within the scope of his authority on behalf of the Association, shall void the policy or be a condition to recovery on the policy.

(iv) The coverage afforded by such policy shall be primary and shall not be brought into contribution or proration with any insurance which may be purchased by Unit Owners or their mortgagees or beneficiaries under deeds of trust.

(v) A “severability of interest” endorsement which shall preclude the insurer from denying the claim of a Unit Owner because of the negligent acts of the Association or other Unit Owners.

(vi) The Association shall be the insured for use and benefit of the individual Unit Owners (designated by name if required by the insurer).

(vii) For policies of property insurance, a standard mortgagee clause providing that the insurance carrier shall notify the Association and each First Mortgagee named in the policy at least ten (10) days in advance of the effective date of any substantial change in coverage or cancellation of the policy.

(viii) Any Insurance Trust Agreement will be recognized by the insurer.

(g) If applicable, pressured, mechanical and electrical equipment coverage on a comprehensive form in an amount not less than $500,000 per accident per location.

9.1 Insurance by Owners. To the extent not covered by the policies of liability

insurance obtained by the Board of Directors for the benefit of all of the Unit Owners,

each Unit Owner shall be responsible for obtaining: (a) property insurance on its Unit

and all fixtures, furnishings, cabinets and appliances and all personal property of the

Owner located in the Unit; and (b) comprehensive general liability insurance covering its

Unit. Each Unit Owner shall name the Association as an additional insured on its

property insurance policy, and provide a certificate of insurance to the Association

annually. Notwithstanding the obligation of the Association to obtain insurance

coverage as stated in this Declaration, neither the Declarant nor the Association, or their

respective officers, directors, employees and agents, shall be liable to any Unit Owner

or any other party if any risks or hazards are not covered by the insurance to be

maintained by the Association or if the amount of the insurance is not adequate, and it

shall be the responsibility of each Unit Owner to ascertain the coverage and protection

afforded by the Association's insurance and to procure and pay for any additional

insurance coverage and protection that the Unit Owner may desire.


9.2 Receipt and Application of Insurance Proceeds. Except as some particular

person shall have a legal right to receive insurance proceeds directly, all insurance proceeds and recoveries under policies maintained by the Association shall be paid to and received by and for the benefit of the Association. The Association shall have the right, acting alone, to adjust or settle any claim by it under any insurance maintained by it. Such funds shall be disbursed by the Association in accordance with the following priorities, subject to such evidence of application as such escrow agent shall require, and shall be applied by the Association as follows: first, as expressly provided elsewhere in this Declaration; second, to the Owners or persons whom the Association may determine are legally or equitably entitled thereto; and third, the balance, if any, to the Operating Account. The lien priority of any First Mortgagee shall not be disturbed by any loss, damage or destruction and shall continue in any insurance proceeds payable with respect to the Mortgaged Unit in accordance with the provisions of this paragraph.

9.3 Other Insurance by the Association. The Association shall also have the power or authority to obtain and maintain other and additional insurance coverage, including but not limited to casualty insurance covering personal property of the Association, fidelity bonds or insurance covering employees and agents of the Association and insurance indemnifying officers, directors, employees and agents of the Association.

10. Destruction, Condemnation, Obsolescence, and Restoration or Sale of Property.

Automatic Reconstruction. Any portion of the Condominium for which insurance is maintained by the Association which is damaged or destroyed shall be repaired or replaced promptly by the Association unless: (a) the Condominium is terminated; (b) repair or replacement would be illegal under any state or local health or safety statute or ordinance; or (c) eighty percent (80%) of the Unit Owners, including every Owner of a Unit or allocated Limited Common Element which will not be rebuilt, vote not to rebuild. The cost of repair or replacement of the damaged or destroyed portion of the Condominium in excess of insurance proceeds and reserves shall be a Common Expense and shall be assessed to the Members as a Special Assessment. Determination Not to Reconstruct Without Termination. If eighty percent (80%) of the Unit Owners (including every Owner of a Unit or an allocated Limited Common Element which will not be rebuilt) vote not to rebuild, and the Condominium is not terminated in accordance with the Condominium Act, the insurance proceeds shall be distributed in proportion to their interests in the Common Elements to the Owners of those Units and the Owners to which those Limited Common Elements were allocated, or to lien holders as their interests may appear. The remainder of the proceeds shall be distributed to all Unit Owners or lien holders as their interests may appear in proportion to Common Element interests of all the Units. If the Unit Owners vote not to rebuild any Unit, that Unit’s allocated interests in the Common Elements and in the Common Expenses shall be automatically reallocated as if the Unit had been condemned under


A.R.S. §33-1206A, and the Association shall prepare, execute and record an amendment to this Declaration reflecting the reallocation.

Distribution of Insurance Proceeds in the Event of termination of Condominium. Notwithstanding any provisions of this Article to the contrary, the distribution of insurance proceeds resulting from the damage or destruction of all or any part of the Common Elements shall be distributed as provided in the Condominium Act in the event of a termination of the Condominium.

Negotiations with Insurer. The Association shall have full authority to negotiate in good faith with representatives of the insurer of any totally or partially destroyed building or any other portion of the Common Elements, and to make settlements with the insurer for less than full insurance coverage on the damage to such building or any other portion of the Common Elements. Any settlement made by the Association in good faith shall be binding upon all Owners and First Mortgagees. Insurance proceeds for any damage or destruction of any part of the Condominium covered by property insurance maintained by the Association shall be paid to the Association and not to any First Mortgagee or other lien holder. The Association shall hold any proceeds in trust for the Unit Owners and lien holders as their interests may appear. All insurance proceeds shall be disbursed first for the repair or restoration of the damaged Common Elements, and Unit Owners and lien holders are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the damaged or destroyed Common Elements have been completely repaired or restored or the Condominium is terminated. Repair of Units. Installation of improvements to, and repair of any damage to the interior of a Unit not covered by property insurance maintained by the Association shall be made by and at the individual expense of the Owner of that Unit and shall be completed as promptly as practicable and in a lawful and workmanlike manner. Priority. Nothing contained in this Article shall entitle an Owner to priority over any lender under a lien encumbering his Unit as to any portion of insurance proceeds allocated to such Unit. 10.1 Special Assessment for Restoration. Whenever Restoration is to be undertaken, the Association may levy and collect assessments from each Owner in proportion to such Owner’s undivided interest in the Common Elements, payable over such period as the Association may determine, to cover the costs and expenses of Restoration to the extent not covered by Available Funds. Such special assessments shall be secured by a lien on the Unit of each such Owner as in the case of regular assessments. 10.2 Receipt and Application of Condemnation Funds. Except as herein expressly provided, all compensation, damages or other proceeds constituting awards in condemnation or eminent domain or payments in lieu of condemnation or eminent domain shall be payable to, or if received by the Association shall be turned over promptly, in the identical form received without commingling with any asset or property of the Association, to an independent financial institution or title company selected by the Association authorized to act as escrow agent for the benefit of the Association, all


Owners of any Unit or all or any part of the Property as their respective interests appear. The Association shall have the right, acting alone, to adjust or settle any award payable to it. Such funds shall be disbursed by said escrow agent in accordance with the following priorities, subject to the evidence of application as such escrow agent shall acquire. The amount thereof equitably allocable as compensation for the taking of or injury to the to the individual air space unit of a particular Unit or to improvements of an Owner therein shall be apportioned and paid to the Owner of the Unit or to any Mortgagee of record of such Unit as their interests may appear. The balance of the award shall be applied to costs and expenses of Restoration, if undertaken, and, to the extent not so applied, shall be allocated as follows. First, any portion of the award allocable to the taking or of injury to Common Elements shall be apportioned among all Owners of the Common Elements in proportion to their respective undivided interests in the Common Elements. Secondly the amounts allocable to severance damages shall be apportioned to Owners of Units with individual air space units which were not taken or condemned in proportion to their respective undivided interest in the Common elements. Thirdly, the amounts allocated to consequential damages or for other purposes shall be apportioned as the Association determines to be equitable under the circumstances. The lien priority of any First Mortgagee shall not be disturbed by any condemnation proceeding and shall continue in the proceeds of any condemnation award attributable to the Mortgaged Unit in accordance with the provisions of this paragraph. 11. Rights of Owners in any Distributions. In the event that any Owner or Mortgagee is entitled to receive any distribution of money, property or other things from the Association for any reason, including without limitation the sale or other disposition of all or any part of the Common Elements or the cessation or termination for any reason of the condominium association herein declared, such distribution shall be in proportion to the interest in the Common Elements appurtenant to the Unit or Units owned or held by such Owner or Mortgagee, except as provided in paragraphs 9 or 10 hereof or as otherwise determined by the Association to be required by equity. 12. Maintenance, Repairs and Replacements; Right of Access. Each Owner shall furnish and be responsible for, at his own expense, all of the maintenance, repairs and replacements within his own Unit and of any portion of the air-conditioning/heating system which exclusively services his Unit; and each Owner shall keep his patio areas and his balcony, if any, in a neat clean and attractive condition. If, due to the willful or negligent act of an Owner or a member of his family or guest or other authorized occupant or visitor of such Owner, or other person for whom such Owner may be responsible, or household pet, damage shall be caused to the Common Elements or to a Unit or Units owned by other, or maintenance, repairs or replacements shall be required which would otherwise be a Common Expense, then such Owner shall pay for such damage and for such maintenance, repairs and replacements as may be determined by the Board. Such obligation of payment and performance shall be payable together with interest, costs and attorneys’ fees.. An authorized representative of the Board, or of the manager or managing agent of the Building, and all contractors and repairmen employed or engaged by the Board or such manager or managing agent,


shall be entitled to reasonable access at reasonable times to each of the Units as may be required in connection with maintenance, repairs or replacements of or to the Common Elements or any equipment, facilities or fixtures affecting or serving other Units and the Common Elements.

13. Alterations, Additions or Improvements. No alterations of any Common Elements or any additions or improvements thereto or any alterations, additions or improvements to the patios or balconies associated with any Unit shall be made by any Owner without the prior written approval of the Board. The Board of Directors may require the Owner to use a licensed contractor for any improvements requiring a contractor. Any Owner may make non-structural alterations, additions or improvements within the interior of his Unit (but excluding for purposes of the authority herein granted any patio or balcony) without the prior written approval of the Board, but such Owner shall be responsible for any damage to other Units, the Common Elements, or the Property which may result from such alteration, addition or improvement. 14. Decorating. Each Owner, at his own expense, shall furnish and be responsible for all of the decorating within his own Unit (but any furnishing or decorating of any patio or balcony shall be subject to the provisions of paragraph 18 of this Declaration) from time to time, including painting, wallpapering, washing, cleaning, paneling, floor covering, draperies, window shades, curtains, lamps and other furniture and interior decorating. Notwithstanding any other provision hereof to the contrary, all draperies, window shades and curtains which can be seen from outside the Unit shall be subject to regulation as to color or design by the Board of Directors. Each Owner shall be entitled to the exclusive use of the interior surfaces of the perimeter walls, floors and ceilings and the surfaces within his Unit, and each Owner shall have the right to decorate such surfaces from time to time as he may see fit at his/her sole expense. However, each Owner shall maintain such surfaces in good condition, and all such use, maintenance and decoration shall be subject to regulation by the Board of Directors. Decorating and maintenance of the Common Elements (other than interior surfaces within the Unit as above provided), and any redecorating of Units to the extent made necessary by any damage caused by defect in or by maintenance or repair work by the Association on the Common Elements shall be furnished by the Association and paid for as part of the Common Expenses. 15. Encroachments. If any portions of the Common Elements shall actually encroach upon any Unit, or if any Unit shall actually encroach upon any portions of the Common Elements, or if any Unit or entryway providing ingress and egress thereto or therefrom shall actually encroach upon another Unit or entryway, as the Common Elements and the Units are shown on the appropriate Plat, whether such encroachment results from the initial construction or from subsequent repair, reconstruction, settlement or shifting, there shall be deemed to be mutual easements in favor of the Owners of the Common Elements and the respective Owners involved to the extent of such encroachment so long as the same shall exist; provided, however, that no such easement shall result from the misconduct of the Owner claiming entitlement thereto. The Association shall at all times have the right to maintain any Common Element now


existing or hereafter constructed, regardless of any encroachment now or hereafter existing of any such Common Element on any Unit.

16. Purchase of Unit by Association. The Board of Directors shall have the power and authority to bid for and purchase any Unit at a sale pursuant to a mortgage foreclosure, Sheriff’s Sale, trustee’s or beneficiary’s sale under a trust deed, or a foreclosure of any lien for assessments provided for in this Declaration, or at a sale pursuant to an order or direction of a court, or other involuntary sale, and the Board shall have power and authority to finance such purchase of a Unit by mortgage, special assessment or any other financing arrangement that the Board may deem necessary or expedient.

17. Use and Occupancy Restrictions. No part of the Property shall be used other than as a dwelling and the related common purposes for which the Property was designed. No Owner shall permit his Unit to be used for transient or hotel purposes or shall lease less than the entire Unit. A Unit Owner must be the Record Owner of a Unit for a minimum of 365 days before leasing his/her Unit. A Unit Owner may only lease his or her Unit one time during each 365-day period. All leases shall be for a minimum of 120 consecutive days.

17.1 The Owner shall provide to the Association the following information regarding the tenant(s):

a.) the name and contact information for any adults occupying the unit; b.) the time period of the lease, including the beginning and ending dates of the tenancy; and c.) a description of and the license plate numbers of the tenants' vehicles.

The Association shall be permitted to charge the maximum fee allowed by Arizona law for each new tenancy, which shall be paid fifteen days from the postmarked request. The Association may (but has no obligation to) automatically suspend the barcode or other access to Communal Areas upon expiration of a lease or failure to submit lease information as set forth in this Section 17. 17.2 Each Unit or any two or more adjoining Units used together shall be used as a single family residence or for such other purposes as are permitted by this Declaration and for no other purpose. That part of the Common Elements separating any two or more adjoining Units under Common ownership and used together for a proper purpose as aforesaid may be altered to afford ingress and egress to and from such adjoining Units at the sole expense of the Owner thereof if and only if specific plans are submitted to and prior approval is obtained from the Board of Directors.

17.3 The Owner, Lessee, or Occupant of a Unit may conduct a business activity within a Unit so long as:


(a) the existence or operation of the business activity is not apparent or detectable by sight, sound, vibration or smell from outside the Unit; (b) the business activity conforms to all applicable zoning ordinances or requirements for the Condominium; (c) the business activity is conducted solely in the Unit;

(d) the business activity does not involve persons coming to the Unit or the door-to-door solicitation of Owners, Lessees, or Occupants; and

(e) the business activity is consistent with the residential character of the Condominium and does not constitute a nuisance or a hazardous or offensive use or threaten the security or safety of other Owners, Lessees, or Occupants, as may be determined from time to time in the sole discretion of the Board of Directors.

17.4 The terms "business" and "trade" as used in this Section shall be construed to have ordinary, generally accepted meanings, and shall include, without limitation, any occupation, work or activity undertaken on an ongoing basis which involves the provision of goods or services to persons other than the provider's family and for which the provider receives a fee, compensation or other form of consideration, regardless of whether:

(a) such activity is engaged in full or part time

(b) such activity is intended or does generate a profit; or

(c) a license is required for such activity. The leasing of a Unit by the Owner thereof shall not be considered a trade or business within the meaning of this Section. 17.5 The Common Elements shall be used only for access, ingress and egress to and from the respective Units by the Owners residing therein, members of their household and their guests, household help and other authorized visitors and for such other purposes as are incidental to the residential use of the Units. The use, maintenance and operation of the Common elements shall not be obstructed, damaged or unreasonably interfered with by any Owner.

17.6 No owner shall keep or maintain anything or shall suffer any condition to exist on his Unit or cause any other condition on the Property which materially impairs any easement or right of any other Owner or otherwise materially impairs or interferes with the use and enjoyment by the Owners of their Units and the Common Elements. Subject to the foregoing, commonly accepted household pets may be kept in a Unit, but no such pets shall be bred or allowed loose or unsupervised on any part of the


Property. Walking of pets shall be prohibited except as such times and on such portions of the Property as the Board may permit by its rules and regulations, and all pets shall be leashed at all times, with no exceptions.

17.7 The maintenance, keeping, boarding and/or raising of animals, reptiles or birds of any kind, regardless of number, is prohibited within any Unit or upon the Common Elements of the Property except that the keeping of one small, orderly domestic dog, cat or caged bird is permitted, subject to the Rules and Regulations adopted by the Board of Directors, provided its weight does not exceed twenty (20) pounds, and provided that such pets are not kept or maintained for commercial purposes or for breeding; and provided, further, that any such pet causing or creating a nuisance or unreasonable disturbance or noise may be permanently removed from the Property upon three days written notice from the Board of Directors. 17.8 Pets shall not be allowed to walk or run (even on a leash) in the hallways, stairways, or other Common Elements of the. Pets shall be taken to a sanitary area designated by the RCI Board of Directors. Dogs and cats must be accompanied by a responsible person. Owners of pets are responsible for maintaining proper sanitation in regard to their pets and must immediately remove and properly dispose of any droppings or excrement from pets except in the sanitary area designated for that purpose.

(a) Any resident who keeps or maintains a pet in a Unit shall be deemed to have indemnified and agreed to hold the Unit owners free and harmless from any loss, claim or liability of any kind or character whatever arising by reason of keeping or maintaining such pet within the Property. The Board of Directors may establish reasonable fees for registration of pets not to exceed the additional costs incurred by the homeowners resulting from the presence of such pets. The Board of Directors may also, in its discretion, establish additional pet fees as allowed by local and state laws, including costs associated with pet waste DNA collection and testing. (b) No pets shall be housed or maintained anywhere on the premises of the Property except in an individual Unit. Any dog or cat found in a building or on the grounds of the Property which is not accompanied by its owner or caretaker and is not registered with RCI shall be deemed to be a stray animal and will be subject to immediate confiscation and/or impoundment without advance notice to anyone. (c) Further, nothing in this Section shall prohibit an Owner from having an animal to be in compliance with Federal Law.

17.9 If the Board determines that any motor vehicle is creating loud or annoying noises by virtue of its operation within the Property, or that the parking or storage of any vehicle or trailer on the Property is unsightly or detracts from the overall character of the Property, such determination shall be conclusive and final that


the operation or storage of such vehicle is a nuisance, and said operation, upon notice by the Board to the owner or operator thereof, shall be prohibited within the Property.

17.10 No structure of a temporary character shall be permitted on the property, and no structure, tent, shack, barn, or trailer shall be permitted on the property either temporarily or permanently, unless it is located thereon by or with the prior written consent of the Board.

17.11 All signs displayed or placed on any Unit shall comply with applicable state law.

17.12 Except as initially installed by Declarant, or previously installed by the Association as of the date this Declaration is recorded, no spotlights, flood lights or other high intensity lighting shall be placed or utilized upon any building, structure, balcony or patio which in any manner will allow light to be directed or reflected on the Property or the Common Elements, or any part thereof, or any other Unit.

17.13 No wind bells, wind chimes, bird feeders, humming bird feeders, or similar devices shall be permitted on the property. 17.14 Each Owner shall install and maintain at all times at his expense carpeting and/or other sound conditioned floor covering, in each case of grades and qualities from time to time approved by the Board of Directors, on all floors in his Unit, except in the kitchens, bathrooms, hallways, and laundry areas. 17.15 No window air conditioners or portable Units of any kind shall be installed in any Building.

17.16 No reflective materials including but not limited to aluminum foil, reflective screens or glass, mirrors, or similar type items, shall be permitted to be installed or placed on the outside or inside of any windows. Enclosures, shades, screens or other items affecting the exterior appearance of any patio or balcony shall not be permitted without the express written consent of the Board of Directors and shall be subject at all times to the rules and regulations of such Board and of the provisions of paragraph 18 of this Declaration.

17.17 Video antenna(s), satellite dishes that are less than one meter in diameter, TV antenna, and wireless cable antenna shall be permitted in a Unit must conform with Federal Law, and must be contained entirely within the perimeter of the balcony. 17.18 Without limiting the foregoing, each Owner shall maintain and keep his Unit at all times in a safe, sound and sanitary condition and repair and shall correct any condition or refrain from any activity which might interfere with the


reasonable enjoyment by other Owners of their respective Units or of the Common Elements or Communal Areas.

17.19 Pursuant to the right of entry herein below set forth in paragraph 21, the Board of Directors or its authorized agents may enter any Unit in which a suspected violation or violation of these restrictions exists and may correct such violation at the expense of the Owner of such Unit, and the Board shall be empowered to levy fines upon the Owner of any such Unit in the amount to be determined by the Board of Directors.

17.20 The Association may modify or waive the foregoing restrictions or otherwise restrict and regulate the use and occupancy of the Property and the Units by reasonable rules and regulations of general application adopted by the Board of Directors from time to time.

18. Architectural Control. No building, fence, wall, antenna, tower, awning, sign or other structure of any kind or character shall be commenced, erected or maintained upon the Property, nor shall any exterior addition, change or alteration be made thereto or therein, including without limitation to any exterior wall or balcony, whether or not part of any Unit, which is visible from the exterior of the Building, and no additions to, changes in, or alterations of landscaping, grade or drainage shall be made, until plans and specifications showing the nature, kind, color, shape, height, materials, location and other material attributes of the same shall have been submitted to and approved in writing as to harmony of external design and location in relation to surrounding structures and topography by the Board of directors or by an architectural committee appointed by the Board.

No object which in the sole opinion of the Board of Directors is unsightly or objectionable shall be placed, hung, or permitted on any patio or balcony. Cleaning and maintenance of finished interior walls, floors and ceilings of each patio and balcony shall be the responsibility of the owner of the Unit to which said patio and balcony is appurtenant, provided, however, that painting or decorating of said walls and ceilings must have prior written approval of the Board of Directors.

19. Party Walls. The rights and duties of the Owners of Units with respect to party walls shall be as follows:

(a) Each wall, including patio and balcony walls, which is constructed as part of the original construction of any structure any part of which is placed on the dividing line between separate Units shall constitute a party wall. With respect to any such party wall, each of the adjoining Owners shall assume the burdens and be entitled to the benefits of these restrictive covenants. In addition, to the extent not inconsistent herewith, the general rules of law regarding party walls shall be applied.

(b) In the event any party wall is damaged or destroyed through the act of the Owner of one adjoining Unit, or any of his guests, tenants,


licensees, agents or members of his family or other person for whom such Owner is responsible (whether or not such act is negligent or otherwise culpable) so as to deprive the other adjoining Unit of the full use and enjoyment of such party wall, then the Owner responsible for such damage shall forthwith at his sole expense proceed to rebuild or repair the same in as good condition as formerly.

(c) In the event any party wall is damaged or destroyed due to ordinary wear-and-tear and deterioration from lapse of time, or by any cause other than the set of one of the adjoining Owners, his agents, tenants, licensees, guests or family or other persons for whom such Owner is responsible, then both such adjoining Owners shall proceed forthwith to rebuild or repair the same to as good condition as formerly at their joint and equal expense. (d) Any Owner who by his negligent or willful act or by the negligent or willful act of any guest, tenant, licensee, agent or member of his family or other persons for whom such Owner is responsible, causes any party wall to be exposed to the elements shall at his sole expense furnish the necessary protection against such elements. (e) The right of any Owner to contribute from any other Owner under this paragraph shall be appurtenant to the land and shall pass to the successors in title of each such Owner. (f) In addition to satisfying the other requirements of this Declaration, any owner proposing to modify, make additions to or rebuild his Unit in any manner which requires the extension or other alteration of any party wall shall first obtain the written consent of the adjoining Owner and shall complete such alterations in accordance with the provisions of any building code or similar regulations or ordinances.

(g) These covenants shall be binding upon the heirs and assigns of any Owners, but no person shall be liable for any act or omission of a previous Owner except as herein expressly provided.

20. Entry by Board or its Agent. The Board of Directors of the Association or its authorized agents may enter any Unit at any reasonable time, with 48 hours’ notice, except for in cases of emergency, when the Board of Directors deem it necessary or advisable for the enforcement of any restriction herein above set forth, to effect emergency or other necessary repairs or otherwise for the protection and preservation of that Unit or other Units. In addition, the Board of Directors or its authorized agents may enter any Unit at any time when any director or agent believes in his discretion that an emergency exists and that such entry is necessary in order to protect any person or property in such Unit or adjoining Units or for other good cause. If it becomes necessary to break into a Unit because no key or means of access was provided by the resident or


Owner, as required herein, the Association, its directors, officers and agents shall not be liable for any damage done to the Unit as a result of the exercise of this right of entry. Unit Owner shall be responsible for all costs related to accessing his or her Unit as a result of the exercise of this right of entry. 21. Roof Leaks or Repairs. The Association shall maintain properly and repair promptly all leaks or other damage to the roofs on any of the Buildings, but shall have no obligation to repair the roofs or membranes of the underground parking garage. The Association is not responsible for any loss, cost, damage or expense incurred as a result of the penetration of water into underground parking garage. 22. Copy of Declaration to New Members. The Board of Directors shall give each new Owner of a Unit a copy of this Declaration and any and all amendments hereto. However, the failure of the Board to provide such copy shall not relieve the new Owner from complying with this Declaration nor waive any of the rights, conditions or restrictions stated herein or create any liability on the part of the Association, the Board of Directors or their agents.

23. Remedies. In the event that any Owner shall fail to comply with the provisions of the Act, this Declaration, the “Articles of Incorporation” herein as referred to as “Articles”, the Bylaws, or the rules and regulations of the Association, the Association shall have each and all of the rights and remedies provided for in the Act, this Declaration, the Articles, the Bylaws or said rules and regulations, or which may be available at law or in equity and may prosecute any action or other proceedings against such Owner for enforcement of such provisions or foreclosure of its lien, or injunctive relief, or specific performance, or judgment for payment of money and collection thereof, all without notice and without regard to the value of such Unit or the solvency of such Owner. All expenses of the Association in connection with any such action or proceeding, including court costs and all attorney’s fees whether or not suit is filed, and other fees and expenses and all damages, liquidated or otherwise, shall be charged to and assessed against such defaulting Owner. Any annual, special or individual assessment, together with late fees, costs of collection thereof (including reasonable attorney’s fees) as hereinafter provided, shall be a charge on the land and shall be continuing lien (which herein may be referred to as Assessment Lien) upon the unit against which such assessment is made. Each such assessment, together with such interest, cost and attorney’s fees, shall be the personal obligation of the person who was the owner of said unit at the time when the assessment fell due, but such personal obligation and liability of the owner shall not be deemed to limit or discharge the charge on the land and continuing lien upon the unit against which such assessment is made. No owner shall escape liability for the assessment which fell due while he was the owner by non-use of the unit or transfer or abandonment of his unit. The owner’s personal obligation for assessments which fell due while he was the owner shall not pass to a successor owner unless expressly assumed by the successor owner.


In the event any Owner is in arrears in the payment of any Assessment, monetary penalties or other fees and charges due under the terms of this Declaration for a period of fifteen (15) days or is in violation of any provision of the Condominium Documents for a period of thirty (30) days after the Unit Owner is notified of the violation by the Association, the Unit Owner's right to run for a position on the Board of Directors or committee and right to vote as a member of the Association shall be automatically suspended and shall remain suspended until all payments, including late fees and attorneys' fees, are brought current, and all violations of the Condominium Documents are cured and corrected to the satisfaction of the Board of Directors. The Owner’s vote may be used to count toward quorum. 24. Amendment. The provisions of this Declaration may be changed, modified or rescinded upon the consent of not less than two-thirds (2/3) of the undivided ownership of the Common Elements; 25. Notices. Notices provided for in the Act, this Declaration, or the Bylaws that are required to be mailed shall be addressed to the Unit Owner’s Association property address, unless a Unit Owner designates a different address in writing. 26. Severability. If any provision of this Declaration, the Articles or the Bylaws or the Rules and Regulations, or any section, clause, sentence, phrase or word, or the application thereof in any circumstance, is held invalid by a Court of competent jurisdiction, the validity of the remainder of this Declaration, the Articles and Bylaws, or the rules and regulations, and of the application of any such provision, section, sentence, clause, phrase or word in any other circumstances shall not be affected thereby, and the remainder of this Declaration, the Articles or Bylaws, or the rules and regulations, shall remain in full force and effect as if such invalid part were never included therein, and such invalid part shall be promptly amended as herein provided or reformed by such Court so as to implement the intent thereof to the maximum extent permitted by law. 27. Rights and Obligations. Each Owner by the acceptance of a deed of conveyance accepts the same subject to all restriction, conditions, covenants, reservations, liens and charges, and the jurisdiction, rights and powers created or reserved by this Declaration. All rights, benefits and privileges of every character hereby granted, created, reserved or declared, and all impositions and obligations hereby imposed, shall be deemed and taken to be covenants running with the land and equitable servitudes and shall be binding upon and shall inure to the benefit of any grantee, purchaser or any person having at any time any interest or estate in said land in like manner as though the provisions of this Declaration were recited and stipulated at length in each and every deed of conveyance, purchase contract or other instrument of transfer, and each such grantee shall be entitled to bring, and shall be subject to, an action for the recovery of damages, or for injunctive relief, or both, resulting from any breach of any such provisions.


28. Utility Easements. Notwithstanding any other provisions hereof, there is hereby created a blanket easement upon, across, over and under the Parcel and Common Elements for ingress, egress, installation, replacing, repairing and maintain all utility and service lines and systems, including without limitation water, sewer, gas telephone, electricity, television cable and communication lines and systems. By virtue of this easement, it shall be expressly permissible for the providing utility or service company to install and maintain facilities and equipment on the Property and to affix and maintain wires, circuits and conduits on, in and under the roofs and exterior walls of the Buildings; provided, that no such utility and service line or system may be installed or relocated on said Property except as initially programmed and approved by Declarant or as thereafter approved by Declarant or by the Board of Directors of the Association. This easement shall in no way affect any other recorded easements on the Property. 29. Professional Management Agreement. Any Agreement for professional management of the condominium association or any contract providing for services to be performed by Recreational Center, Inc. for the Association shall provide for termination by either party with or without cause and without payment of a termination fee on thirty (30) days written notice, and no such contract or agreement shall be of a duration in excess of one (1) year, renewable by agreement of the parties for successive one (1) year periods.

30. Plan of Development. The condominium association hereby declared and created is one of seven (7) separate condominium associations created on the real property described in the Plat attached hereto as Exhibit Q. All of such condominium associations contain in total approximately 880 units.

31.1 Easement of Recreational Center, Inc., There has been deeded to Recreational Center, Inc. all of the private roadways and portions of the real property described in the Plat attached hereto as Exhibit Q for the purpose of providing recreational facilities for the Association and for the councils of co-owners of the other condominium associations created or planned to be created on such real property, including without limitation a recreational building, golf course, swimming pools, and tennis courts. Recreational Center, Inc. is to own, develop, operate and manage all such facilities and areas for the Association and the councils of co-owners of each and all such other condominium associations. Recreational Center, Inc. is hereby granted an easement over and on top of the location shown for underground garages on the Plat for the purpose of installing, maintaining, operating and managing such recreational facilities.


31.2 Rights and Duties of Association in Recreational Center, Inc. The council of co-owners of each condominium association at any time created on the real property described in the Plat attached hereto as Exhibit Q, including the Association, will upon becoming a member of Recreational Center, Inc., hold a percentage interest in Recreational Center, Inc. equal to the proportion and ratio which the square footage of all Units in such condominium association bears to the square footage of all Units in all of the condominium associations then created on such real property, which are then members of Recreational Center, Inc., subject to adjustment on account of any other condominium association thereafter created on such real property which becomes a member of Recreational Center, Inc.

The council of co-owners of each such condominium association which is a member of Recreational Center, Inc., including the Association, will also be assessed by Recreational Center, Inc., and will pay, in the same proportion as the percentage interest of such condominium association in Recreational Center, Inc., for all costs and expenses incurred by Recreational Center, Inc. from an after the date such membership commences. Such proportionate share of the costs and expenses of Recreational Center, Inc. shall be assessed to the Owners by the Association as Common Expenses, as provided in paragraph 7.

The obligation of each Unit in the Association to pay its share of such costs and expenses to Recreational Center, Inc., in the event the Association shall fail to do so when due, shall be direct and primary, and Recreational Center, Inc. shall have the right to assert and enforce a lien against each Unit in the Association therefor; provided, however, that Recreational Center, Inc. shall not have or be entitled to enforce a lien against any Unit the Owner of which shall have paid his proportionate share of such costs and expenses of Recreational Center, Inc. to the Association or to Recreational Center, Inc. Such lien or liens shall be effective only upon recordation of a notice thereof in the office of the County Recorder of Maricopa County. A copy of such notice shall be posted on each Unit subject thereto within three (3) days after such recordation. Any action brought to foreclose such lien shall be commenced within one (1) year after the date of such recordation and shall be foreclosed in any manner provided or permitted by the laws of the State of Arizona for the foreclosure of real property mortgages or deeds of trust. The lien herein provided shall be subordinate to the lien of any prior recorded First Mortgage acquired in good faith and for value on the applicable Unit.

32. Waiver. Any right or remedy provided for in this Declaration shall not be deemed to have been waived by any act or omission, including without limitation any acceptance of payment or partial performance or any forbearance, except by


an instrument in writing specifying such right or remedy and executed by the person against whom enforcement of such waiver is sought.


Exhibit “A” Declaration Submitting Property To A

Horizontal Property Regime And

Declaration of Covenants, Restrictions and Conditions For

Scottsdale Shadows Regime IV

Legal Description of Property:

That portion of the Southeast quarter of the Northeast quarter of Section 23, Township 2 North, Range 4 East of the G&SRB&M more particularly described as follows: COMMENCING at the Southwest corner of the Southeast quarter of the Northeast quarter of said Section 23; thence South 89 degrees 59 minutes 55 seconds East (an assumed bearing) along the South line of the Southeast quarter of the Northeast quarter of said Section 23 for a distance of 356.20 feet; thence North 00 degrees 00minutes 05 seconds East, a distance of 156.65 feet; thence North 45 degrees 00 minutes 06 seconds East, a distance of 211.46 feet; thence North 44 degrees 59 minutes 54 seconds West, a distance of 355.33 feet to the true point of beginning; thence continuing North 44 degrees 59 minutes 54 seconds West, a distance of 270.33 feet; thence North 45 degrees 00 minutes 06 seconds East, a distance of 79.67 feet; thence North 44 degrees 59 minutes 54 seconds West; a distance of 100.00 feet; thence North 45 degrees 00 minutes 06 seconds East, a distance of 284.67 feet; thence South 44 degrees 59 minutes 54 seconds East, a distance of 370.33 feet; thence South 45 degrees 00 minutes 06 seconds West, a distance of 364.33 feet to the true point of beginning.


Exhibit “R”

Declaration Submitting Property To A Horizontal Property Regime

And Declaration of Covenants, Restrictions and Conditions

For Scottsdale Shadows Regime IV

Building 26 - Regime IV

101 0.641% 201 0.699% 301 0.699% 401 0.699%

102 0.641% 202 0.641% 302 0.641% 402 0.641%

103 0.641% 203 0.641% 303 0.641% 403 0.641%

104 0.641% 204 0.641% 304 0.641% 404 0.641%

105 0.641% 205 0.641% 305 0.641% 405 0.641%

106 0.495% 206 0.495% 306 0.495% 406 0.495%

107 0.492% 207 0.495% 307 0.495% 407 0.495%

108 0.641% 208 0.641% 308 0.641% 408 0.641%

109 0.532% 209 0.532% 309 0.532% 409 0.532%

110 0.532% 210 0.532% 310 0.532% 410 1.173%

111 0.641% 211 0.641% 311 0.641%

112 0.641% 212 0.717% 312 0.717% 412 0.717%

501 0.699% 601 0.699% 701 0.699%

502 0.641% 602 0.641% 702 0.641%

503 0.641% 603 0.641% 703 0.641%

504 0.641% 604 0.641% 704 0.641%

505 0.641% 605 0.641% 705 0.641%

506 0.495% 606 0.495% 706 0.495%

507 0.495% 607 0.495% 707 0.495%

508 0.641% 608 1.043% 708 1.043%

509 0.532%

510 0.532% 610 0.537% 710 0.537%

511 0.641% 611 0.641% 711 0.641%

512 0.717% 612 0.711% 712 0.711%


Unit Allocations – Cont.

Building 27 - Regime IV

Parking = 0.046%

101 0.641% 201 0.717% 301 0.717%

102 0.641% 202 0.641% 302 0.641%

103 0.532% 203 0.532% 303 0.532%

104 0.532% 204 0.532%

105 0.641% 205 0.641% 305 1.143%

106 0.719% 206 0.719% 306 0.719%

107 0.789% 207 0.789% 307 0.789%

108 0.641% 208 0.641% 308 0.641%

109 0.641% 209 0.641% 309 0.641%

110 0.789% 210 0.789% 310 0.789%

111 0.495% 211 0.513% 311 0.513%

401 0.717% 501 0.717% 601 0.717%

402 0.641% 502 0.641% 602 0.641%

403 0.532% 503 0.532% 603 0.532%

404 1.013% 504 1.013% 604 1.013%

406 0.719% 506 0.719% 606 0.719%

407 0.786% 507 0.786% 607 0.786%

408 0.641% 508 0.641% 608 0.641%

409 0.641% 509 0.641% 609 0.641%

410 0.789% 510 0.789% 610 0.789%

411 0.513% 511 0.513% 611 0.513%

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44

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Parking Layout – Exhibit “B”

Floor Plan – Exhibit “C”


Floor Plan – Exhibit “D”

Floor Plan – Exhibit “E”


Floor Plan Exhibit “F”

Floor Plan – Exhibit “G”


Floor Plan – Exhibit “H”

Floor Plan – Exhibit “I”


Floor Plan – Exhibit “J”

Floor Plam – Exhibit “K”


Floor Plan – Exhibit “L”

Floor Plan - -Exhibit “M”


Floor Plan – Exhibit “N”

Floor Plan – Exhibit “O”


Floor Plan – Exhibit “P”


Exhibit “Q”

Scottsdale Shadows Development

http://scottsdaleshadows.org/wp-content/uploads/sites/1/nggallery/photo-gallery/Shadows_4.jpg


A majority of the Owners/Members adopted the above CC&R’s on this ____ day

of ________________, 2017. Attested the Regime IV HOA received the necessary voting

approval & the additional approval of the mortgage holders that are affected

SCOTTSDALE SHADOWS V INC.

By: ____________________________

Its: President

Attested by:______________________

Secretary

STATE OF ARIZONA )

) ss.

COUNTY OF MARICOPA )

On this ___ day of ________________, 20____, before me the undersigned

Notary Public, personally appeared _____________________, who acknowledged to me

that he/she is the President of Scottsdale Shadows V Inc., and that he/she executed the

foregoing resolution on behalf of the Association for the purposes expressed therein.

___________________________

Scottsdale Shadows - Amended and Restated Declaration of … · 2017-08-11 · Scottsdale Shadows...

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