RecDecDocument Number: A796257Filed and/or Recorded onJan 29, 2026 12:21 PMOffice of the County Recorder/Registrar of TitlesCarver County, MinnesotaKaaren Lewis, County RecorderCrystal Campos, AuditorMary f\aye Wahl, TreasurerDeputy RRCertificate of Real Estate Vaiue Not RequiredNo delinqLent taxesCurrent year taxes paidDocunrent Recording Fees g 46.00DocumentTotal$ 46.00Requesting Pafty: LAND TI-LE INCPages: 39This cover page has been added to this dcrcument by Carver County Land Recordsand is now an official part of rlhis recorded document
\ ,-, -.,(Above Space Reserved for Recording Data)COMMON INTEREST COMMUNITY NO. 179(Planned Community)PIONEER RIDGE TOWNHOMESDECLARATIONThisDeclaration(the"Declaration") ismadeasof the 22ndday of December2025, byPioneerRidge LLC (the "Declarant"), pursuant to the provisions of Minnesota Statutes Chapter 5158, known as theMinnesota Common lnterest Ownership Act ("MC|OA"), for the purpose of establishing Pioneer RidgeTownhomes as a planned community under MCIOA.WHEREAS The Declarant is the owner of the Property (as defined below) and intends by thisDeclaration to impose thereon mutually beneficial restrictions under a general plan of development forthe benefit of all owners or residences within the Property.WHEREAS, Declarant desires to establish on the Property a plan for a permanent, residentialcommunity to be owned, occupied and operated for the use, health, safety and welfare of its residentOwners and Occupants, and for the purpose of preserving the quality and character of the Property; andWHEREAS, the Property is not subjectto an ordinance referred to in Section 5158.1-106 of MCIOA,governing conversions to common interest ownership; andWHEREAS, the common interest community does not include shoreland as defined in MinnesotaStatutes Section 103F.205, and, as such, is not subject to county, township or municipal ordinances orrules affecting the development or use of the shoreland area; andWHEREAS, the Property and the Association are not subject to a master association as defined inSection 5158.2-121of MCIOA; andLAND TITLE, INC.z2IX' W. COUNTY ROAD CsutTE 2205ROSEVILLE, MN^55113Frb Dro" ??.t4K'Curent taxes on parcel flescribedwithin paid as ot 0l.lS,?g2l4oaulKaarenlLewis Garver County Recorderev{\Luu4r"(,!^-u DeputyI IJ
THEREFORE, Declarant makes this Declaration and subjects the Property to this Declaration underthe name "Pioneer Ridge Townhomes" initially consisting of the Units referred to in Section 2, declaringthat this Declaration shall constitute covenants to run with the Property and that the Property, and anyAdditional Real Estate added thereto, shall be owned, used, occupied and conveyed subject to thecovenants, conditions, restrictions, easements, charges and liens set forth herein, all of which shall runwith the land and be binding upon all Persons (as defined herein) owning or acquiring any right, title orinterest therein, and their heirs, personal representatives, successors and assigns.SECTION 1DEFINITIONSThe following words when used in the Governing Documents shall have the following meanings(unless the context indicates otherwise).1.1 lntentionallyomittedT,2"Assessment" means all assessments and other amounts levied or assessed by the Associationpursuant to this Declaration and MCIOA.1.3"Association" means Pioneer Ridge Townhomes Association, a Minnesota nonprofitcorporation created pursuant to Minnesota Statutes Chapter 3'17A and Section 5058,3-'10'1 ofMCIOA, whose members consist of all Owners.1.4 "Board" means the Board of Directors of the Association as provided for in the Bylaws.1.5"Bylaws" means the Bylaws governing the operation of the Association, as amended fromtime to time.1,6 "City" means the City of Ghanhassen, Minnesota.1.7 lntentionallyomitted1.8"Common Expenses" means all expenditures made or liabilities incurred by or on behalf of theAssociation and incident to its operation, and items othenrvise identified as Common Expensesin the Declaration or Bylaws. Common Expenses shall include the Association's share ofmaintenance, repair and replacement obligations as may be specified in an easementagreement with an adjoining common interest community (Pioneer Ridge Villas)/homeownersassociation (Pioneer Ridge Villas Homeowners Association) related to the Private Drive.1.9"Declarant Control Period" means the time period during which Declarant has the exclusiveright to appoint the members of the Board, as provided in Section 16,8.1.10 "Development Area" means allrealestate subject to development by the Master Developer,if any, as described in the Master Declaration, if any.1.11 "Dwelling" means a building or part thereof consisting of one or more floors, designed andintended for occupancy as a single family residence, and located within the boundaries of a2
Unit. The Dwelling includes any garage attached thereto or otherwise located within theboundaries of the Unit in which the Dwelling is located.1.12 "Easement Declaration" means the Easement and Maintenance Agreement recorded or to berecorded against portions of the Property and the other parcels described therein adjoining theProperty which parcels are part of Pioneer Ridge Townhomes Homeowners Association, asfufther described in Section 12.11, if any.1.13 "Governing Documents" means this Declaration, and the Articles of lncorporation and Bylaws ofthe Association, as amended from time to time, all of which shall govern the use andoperation of the Property.1.14 "Limited Common Elements" means a portion of the Common Etements allocated by thisDeclaration or by operation of Section 5158.2-109(c) or (d) of MCIOA for the exclusive use of oneor more, but fewer than all, of the Units.1.15 "MCIOA" means the Minnesota Common lnterest Ownership Act, Minnesota Statutes Chapter5158, as amended now and in the future.'1 .1 6 "Member" means a Person who is a member of the Association by virtue of being an Owner. Thewords "Owner" and "Member" may be used interchangeably in the Governing Documents.1.17 "Mortgagee" means any Person owning a mortgage on any Unit, which mortgage is first inpriority upon foreclosure to allother mortgages that encumber such Unit.1.18 "Occupant" means any person or persons, otherthan an Owner, in possession of, residing in orothenntise occupying a Unit.1 .19 "Owner" means a Person who owns a Unit, but excluding a contract for deed vendor, a Mortgagee,the holder of a reversionary or remainder interest and any other secured party within the meaningof Section 51 58.1-103(31) of MCIOA. The term "Owner" includes, without limitation, a contractfor deed vendee and a holder of a life estate.1.20 "Person" means a natural individual, corporation, limited liability company partnership, limitedliability partnership, trust, or other legal entity capable of holding title to real property.1,21"Plat" means the recorded plat depicting the Property pursuant to the requirements of Section5158.2-ll0l(d) of MCIOA, and satisfying the requirements of Minnesota Statutes Chapter 505 or508, as applicable, including any amended or supplemental Plat recorded from time to time inaccordance with MCIOA."Private Drive" means the private street or drive which is subject to an easement agreement with anadjoining common interest community (Pioneer Ridge Villas)/homeowners association (Pioneer RidgeVillas Homeowners Association) and the costs of maintenance, repair and replacement of the PrivateDrive and lot upon which such Private Drive is located shall be shared as specified in such easementagreement with the Pioneer Ridge Villas Homeowners Association.31.22
1.23"Property" means the property described as Lots 15 through 34, Block 1 and Lots 1 through20, Block 2, Pioneer Ridge, according to the recorded plat thereof on file and of record in theoffice of the Carver County Recorder, attached hereto as Exhibit A.ru1 ,24 "Rules and Regulations" means the Rules and Regulations of the Association as approved fromtime to time pursuant to Section 5.7.1.25 "special Declarant Rights" means those exclusive rights reserved to Declarant as described inSection 16.1.26 "Unit" means any platted lot subject to this Declaration upon which a Dwelling is located orintended to be located, as described in Section 2,1 and shown on the Plat, including allimprovements thereon, but excluding the Common Elements.Any capitalized terms used in the Governing Documents, and defined in MCIOA and not in this Section,shall have the meaning set forth in MCIOA. References to section numbers shall refer to sections of thisDeclaration, unless othenrvise indicated, References to the singular may refer to the plural, and conversely,depending on context.SECTION 2DESCRIPTION OF UNITS, BOUNDARIES AND RELATED EASEMENTS2.1 Units. There are forty (40) Units, subject to the right of the Declarant to add additional Unitspursuant to Section 17. All Units are restricted exclusively to residential use and those incidental usespermittedinSectionT.4, Each Unitconstitutesaseparateparcel of real estate. Noadditional Unitsmaybecreatedbythesubdivisionorconversionof UnitspursuanttoSection 5158.2-112of MCIOA. TheUnitidentifiers and locations of the Units are as shown on the Plat, which is incorporated herein by reference.The Unit identifier for a Unit is its lot and block number and the subdivision name.2.2 Unit Boundaries. The front, rear and side boundaries of each Unit shall be the boundary lines ofthe platted lot upon which the Dwelling is located or intended to be located, as shown on the Plat. TheUnits shall have no upper or lower boundaries. Subject to this Section 2 and Section 3, allspaces, walls,and other improvements within the boundaries of a Unit are a part of the Unit.2.3 Appurtenant Easements, The Units shall be subject to and benefited by the easements describedin Section 12.4
SECTION 3COMMON ELEMENTS, LIMITED COMMON ELEMENTS AND OTHER PROPERTY3.1 Common Elements. "Common Elements" mean all portions of the Property other than the Units,including all improvements thereon, owned by the Association for the common benefit of the Owners andOccupants. The Common Elements are legally described on the attached Exhibit B and depicted on thePlat -%'The Common Elements and their characteristics are as follows:3.1.1 The Common Elements shall be subject to (i) easements as described in thisDeclaration and any other easements recorded against the Common Elements; (ii) the rights ofOwners and Occupants in Limited Common Elements, if any, allocated to their respective Units;and (iii) the right of the Association to establish reasonable Rules and Regulations governing theuse of the Property.3.2 Limited Common Elements. The Limited Common Elements are those parts of theCommon Elements reserved for the exclusive use of the Owners and Occupants of the Units to which theyare allocated. The rights to the use and enjoyment of the Limited Common Elements are automaticallyconveyed wlth the conveyance of such Units. The Limited Common Elements are described and allocatedto the Units, as follows:3.2.1 Chutes, flues, ducts, pipes, wires, conduit or other utility installations, bearingwalls, bearing columns, or any other components or fixtures lying wholly or partially outside the Unitboundaries, and serving only a certain Unit or Units, are allocated to the Unit or Units which they serve.Any portion of such installations serving or affecting the function of the Common Elements is part of theCommon Elements.3.2.2 lmprovements, if any, such as decks, patios, porches, balconies, shutters,awnings, exterior doors and windows, window boxes, chimneys, driveways, walks, doorsteps or stoops,constructed as part of the original construction to serve a single Unit or Units, and replacements andmodifications thereof authorized pursuant to Section 8, and located wholly or partially outside the Unitboundaries, are allocated to the Unit or Units which they serve.3.2.3 Heating, ventilating or air conditioning equipment, if any, located wholly orpartialiy outside the Unit boundaries, serving only a certain Unit or Units, is allocated to the Unit or Unitsserved by such equipment.3.3 Annexation of Other Property. ln addition to the Additional Real Estate, other real propertymay be annexed to the common interest community as Common Elements, or any combination thereof,and subjected to this Declaration in accordance with procedures and requirements set forth in MCIOA.5
SECTION 4ASSOCIATION MEMBERSHIP; RIGHTS AND OBLTGATTONSMembership in the Association, and the allocation to each Unit of a portion of the votes in theAssociation and a portion of the Common Expenses of the Association, shall be governed by the followingprovisions:4.1 Membership. Each Owner shall be a Membersolely by reason of owning a Unit, and themembership shall be transferred with the conveyance of the Owner's interest in the Unit. An Owner'smembership shall terminate when the Owner's ownership terminates. When more than one person is anOwner of a Unit, allsuch Persons shall be Members, but multiple ownership of a Unit shall not change thevoting rights allocated to such Unit nor authorize the division of the voting rights.4.2 Voting and Common Expenses. Each Unit is assigned one vote. Common Expenseobligations are allocated equally among the Units, subject to Section 6. Said rights and obligations shallbe automatically reallocated on the same basis among all Units as and if additional Units are added to theProperty.4.3 Appurtenant Rights and Obligations. The ownership of a Unit shall include the voting rightsand Common Expense obligations described in Section 4,2, Said rights and obligations, and the tifle to theUnits, shall not be separated or conveyed separately, and any conveyance, encumbrance, judicial sale orother transfer of any allocated interest in a Unit, separate from the tiile to the Unit shall be void. Theallocation of the rights and obligations described in this Section may not be changed, except in accordancewith the Governing Documents and MCIOA,4.4 Authority to Vote. The Owner, or some natural person designated to act as proxy on behalfof the Owner, and who need not be an Owner, may cast the vote allocated to such Unit at meetings of theAssociation. However, if there are multiple Owners of a Unit, only the Owner or other Person designatedpursuant to the provisions of the Bylaws may cast such vote. The voting rights of Owners are more fullydescribed in Section 3 of the Bylaws.SECTION 5ADMINISTMTIONThe administration and operation of the Association and the Property, including but not limitedto the acts required of the Association, shall be governed by the following provisions:5.1 General. The operation and administration of the Association and the Property aregoverned by the Governing Documents, the Rules and Regulations and MCIOA. Subject to the GoverningDocuments and MCIOA, the Association is responsible for the operation, management and control of theProperty and shall have all powers described in the Governing Documents, MCIOA and the statute underwhich the Association is incorporated. All power and authority exercisable by the Association shall bevested in the Board, unless action or approval by the individual Owners is expressly required by theGoverning Documents or MCIOA. All references to the Association shall mean the Association actingthrough the Board, unless specifically stated to the contrary.6
5.2 lntentionally omitted5.3 Operational Purposes. Subject to Section 5.2, the Association shall operate and managethe Property for the purposes of (i) administering and enforcing the covenants, restrictions, easements,charges and liens set forth in the Governing Documents and the Rules and Regulations; (ii) maintaining,repairing and replacing those portions of the Property and other property for which it is responsible; and(iii) preserving the arohitectural and physicalcharacter of the Property.5.4 Binding Etfect of Actions. Allagreements and determinations made by the Association inaccordance with the Governing Documents or MCIOA shall be binding upon all Owners and Occupants,and their lessees, guests, heirs, personal representatives, successors and assigns, and all secured partiesas defined in MCIOA.5.5 Bylaws. The Association shall have Bylaws. The Bylaws shall govern the operation andadministration of the Association; and shall be binding on all Owners and Occupants.5.6 Management. The Board may delegate to a manager or managing agent the managementduties imposed upon the Association's officers and directors by the Governing Documents and MCIOA.However, such delegation shall not relieve the officers and directors of the ultimate responsibility for theperformance of their duties as prescribed by the Governing Documents and by law.5.7 Rules and Regulations. The Board shall have authority to approve and implement suchreasonable Rules and Regulations as it deems necessary from time to time for the purpose of operatingand administering the affairs of the Association and regulating the use of the Property; provided, that theRules and Regulations shall not be inconsistent with the Governing Documents or MCIOA. The inclusionin other parts of the Governing Documents of authority to approve Rules and Regulations shall be deemedto be in furtherance, and not in limitation, of the authority granted by this Section. New or amendedRules and Regulations shall be effective only after reasonable notice thereof has been given to the Owners.5.8 Association Assets; Surplus Funds. All funds and real or personal property acquired bythe Association shall be held and used for the benefit of the Owners for the purposes stated in theGoverning Documents. Surplus funds remaining after payment of or provision for Common Expenses andreserves shall be credited against future Assessments or added to reserves, as determined by the Board,5.9 Resale Disclosure Certificates. Pursuant to Section 5158.4-107 of MCIOA, in the event ofa resale of a Unit by an Owner other than Declarant, that Owner shall furnish to the purchaser a resaledisclosure certificate containing the information required by Section 5158.4-107(b) of MCIOA. Pursuantto Section 515B.4-107(d) of MCIOA, the Association shall, within ten (10) days after a request by an Owneror the Owner's authorized representative, furnish the resale disclosure certificate. The Association maycharge a reasonable fee for furnishing the resale disclosure certificate and any documents related thereto.'7
SECTION 6ASSESSMENTS61 General. The Board, on behalf of the Association, shall approve an annual budget ofCommon Expenses. The annual budget shall include all customary and necessary operating expenses andreplacement reserves for the Property and an adequate amount to fund the implementation of theAssociation's preventative maintenance plan and maintenance schedule consistent with this Declarationand MCIOA. The Board may elect to defer the levying of the first Assessment, in which case Declarantshall pay all operating expenses of the common interest community and shall fund the applicablereplacement reserve component of the Common Expenses as required by Section SlSB.3-llslib) of MCIOA,until the first Assessment is levied. The replacement reserve component of the Common Expenses shallnot be assessed against a Unit until such Unit is substantially complete in accordance with Section SlSB.3-llSl(b) of MCIOA. When the first Assessment is levied all Owners, including Declarant, shall pay theAssessments levied against their Units, subject to Section 6.8 and the requirements and procedures setforth in the Bylaws. Assessments shall include annualAssessments under Section 6.2, and may includespecial Assessments under Section 6.3 and limited Assessments under Section 6.4. Annual and specialAssessments shall be allocated among the Units in accordance with the allocation formula set forth inSection 4.2. Limited Assessments under Section 6.4 shall be allocated to Units as set forth in that Section.6.2 Annual Assessments. Annual Assessments shall be established and levied annually by theBoard, subject to the limitations set forth hereafter. Each annual Assessment shall cover all of theanticipated Common Expenses of the Association for that year which are to be shared by all Units inaccordance with the allocation formula set forth in Section 4.2. Annual Assessments shall be payable inequal monthly or quarterly installments, as established by the Board. Annual Assessments shall provide,among other things, for an adequate reserve fund for the replacement of the Common Elements and thoseparts of the Units for which the Association is responsible, except as othenruise provided in Section 6.5.6.3 Special Assessments, ln addition to annual Assessments, and subject to the limitationsset forth hereafter, the Board may levy in any Assessment year a special Assessment against all Units inaccordance with the allocation formula set forth in Section 4,2, and for the purposes described in thisDeclaration. Special Assessments may be levied only to (i) cover expenditures of an emergency nature;(ii) replenish underfunded replacement reserves; (iii) cover unbudgeted capital expenditures or operatingexpenses; or (iv) replace certain components of the common interest community referred to in Section5158.3-1141{a) of MCIOA, if such alternative method of funding is approved under Section 5158.3-1 1a1(a)(S) of MCIOA. A special Assessment may be payable in more than one year and in more than oneinstallment as determined by the Board.6.4 Limited Assessments. ln addition to annual Assessments and special Assessments, theBoard has the authority to levy and allocate limited Assessments among the Units in accordance with thefollowing requirements and procedures:6.4.1 Any Common Expense associated with the maintenance, repair, or replacementof a Limited Gommon Element, if any, shall be assessed exclusively against the Unit or Units to which thatLimited Common Element is allocated equally, by actual cost per Unit or by such other reasonableallocation as may be approved by the Board.B
6.4.2 Any Common Expense benefiting fewer than all of the Units but not falling withinSection 6.4.1may, at the Board's discretion, be assessed against the Unit or Units benefited equally, byactual cost per Unit or by such other reasonable allocation as may be approved by the Board.6.4.3 The costs of insurance may be assessed equally or by actual cost per Unit, and thecosts of common utilities or other common services such as cable TV, internet and other electroniccommunications may be assessed equally in proportion to usage or by such other reasonable allocationasmaybeapprovedbytheBoard. lnsurancedeductiblesmaybeassessedasprovidedbySection'10.6.4.4 Reasonable attorneys' fees and other professional fees and costs incurred by theAssociation in connection with (i) the collection of Assessments, and (ii) the enforcement of the GoverningDocuments, MCIOA or the Rules and Regulations against an Owner or Occupant or their guests, may beassessed against the Owner's Unit.6.4.5 Late charges, fines and interest may be assessed as provided in Section 13.6.4.6 Assessments levied under Section 5158.3-116(a) of MCIOA to pay a judgmentagainst the Association may be levied only against the Units existing at the time the judgment was entered,in proportion to their Common Expense liabilities,6.4.7 lf any damage to the Common Elements or another Unit or any portion of theOwner's Unit that the Association is obligated to maintain hereunder is caused by the act or omission ofan Owner or Occupant, or their guests, the Association may assess the costs of repairing the damageexclusively against the owner's Unit to the extent not covered by insurance.6.4.8 lf Common Expense liabilities are reallocated for any purpose authorized byMCIOA, Assessments and any installment thereof not yet due shall be recalculated in accordance with thereallocated Common Expense liabilities.Assessments levied under Sections 6.4.1 through 6.4.7 may, at the Board's discretion, be assessed as apart of, or in addition to, other Assessments levied under Section 6.1 or 6.2.6,5 Replacement Reserves. The Association shall include in its annual budgets replacementreserves projected by the Board to be adequate, together with past and future contributions to replacementreserves, to fund the replacement of those components of the Units and Common Elements, theAssociation is obligated to replace by reason of ordinary wear and tear or obsolescence, subject to thefollowing:6,5.1 The amount annually budgeted for replacement reserves shall be adequate,together with past and future contributions to replacement reserves, to replace the components asdetermined based upon the estimated remaining useful life of each component; provided that portionsof replacement reserves need not be segregated for the replacement of specific components.6.5.2 The annual budget need not include reserves for the replacement of (i)components that have a remaining useful life of more than thirty (30) years, or (ii) components whosereplacement will be funded by (a) limited Assessment pursuant to Section 6.4.'1 , or (b) special Assessment9
pursuant to Section 6.3 or by limited Assessment pursuant to Section 6.4.2rt approved pursuant to Section6.5.5.6.5,3 The replacement reserve funds shall be maintained in an account or accountsseparate from operating funds. None of the replacement reserve funds shall be used or borrowed fromto fund operating expenses. The Association may, however, pledge the replacement reserves as securityfor a loan to the Association.6.5.4 The adequacy of the replacement reserves shall be reevaluated at least everythird year after recording of this Declaration.6.5.5 After termination of the Declarant Control Period, and subject to approval (i) bythe Board, and (ii) by Owners, other than Declarant or its affiliates, of Units to which fifty-one percent{51o/o) of the votes in the Association are allocated, the Association need not annually assess forreplacement reserves to replace those components whose replacement is planned to be paid by specialAssessment pursuant to Section 6.3 or by limited Assessment pursuant to Section 6.4.2. The approvalprovided for in the preceding sentence shall be effective for no more than the Association's current andthree following fiscal years, subject to modification or renewal by the same approval standards.6.6 Working Capital Fund. There shall be established a working capital fund to meetunforeseen expenditures or to purchase additional equipment or services for the Association. The Boardmay include in each subsequent annual budget a reasonable amount of working capital, based upon theanticipated needs of the Association for the year in question. There shall be contributed, on a one-timebasis for each Unit sold by Declarant, an amount equal to two (2) months installments of the estimatedannual Assessment for the Unit. The contribution shall be paid by the purchasers of the Units at the timeofclosingoftheinitialsalesoftheUnitsbyDeclarant. Thecontributionstothisfundareinadditiontothe regular installments of annual Assessments. The funds shall be deposited into a segregatedAssociation account no laterthan the termination of the Declarant Control Period. Funds deposited insaid account shall not be used to defray any of Declarant's expenses, reserve contributions or constructioncosts, nor to make up any budget deficits during the Declarant Control Period. However, upon the closingof the initial sale of a Unit, Declarant may reimburse itself from funds collected from the purchaser at theclosing for any prior contributions made by Declarant to the working capital fund with respect to thatUnit.6.7 Liability of Owners for Assessments. The Owner of the Unit at the time an Assessment ispayable with respect to the Unit shall be personally liable for the share of the Common Expenses assessedagainst such Unit. Such liability shallbe joint and severalwhere there are multiple Owners of the Unit.Subject to Section 6.8, the liability is absolute and unconditional and no Owner is exempt from liability forpayment of Assessments by right of set-off, by waiver of use or enjoyment of any part of the Property, byabsence from or abandonment of the Unit, by the waiver of any other rights, or by reason of any claimagainst Declarant, the Association or their respective officers, directors or agents, or for their failure tofulfill any duties under the Governing Documents or MCIOA.6 I Declarant's Liability for Assessments. Pursuant to Section 5158.3-'1 151{a) of MCIOA, theDeclarant's liability for Assessments shall be subject to the following limitations.6.8.1 Notwithstanding anything to the contrary in the Governing Documents, if anAssessment has been levied, Declarant may elect to pay, in lieu of installments of Assessments for Units10
owned by Declarant, an amount equal to the sum of (A) the full share of replacement reserves allocatedto Units owned by Declarant and (B) all accrued Common Expenses of the Association in excess of theaggregate Assessments payable with respect to Units owned by Persons other than Declarant. The periodof this alternate common expense plan shall commence the later of (i) the date a notice of election is givenby Declarant to the Association or (ii) any later commencement date stated in the notice, and shallterminate the earlier of (i) termination of the Declarant Control Period or (ii) the date of termination setforth in a notice of termination given by the Declarant to the Association and the Owners not less thanthirty (30) days prior to such date of termination.6.8.2 lntentionallyomitted6.8.3 lf Declarant utilizes the alternate common expense plan, the Declarant shall, aftertermination of the Declarant Control Period, provide the audited financial reports and pay anyaccumulated operating deficit reported therein in accordance with Section 515B.3-llSl(a) of MCIOA.6.9 Assessment Lien. The Association has a lien on a Unit for any Assessment levied againstthat Unit from the time the Assessment becomes due. lf the Declarant utilizes the alternate commonexpense plan described in Section 6.8, the Association has a lien on any Unit owned by the Declarant forthe accumulated operating deficit responsibility provided in Section 5158.3-1151(a) of MCIOA. lf anAssessment is payable in installments, the full amount of the Assessment is a lien from the time the firstinstallment thereof becomes due. Fees, charges, late charges, fines and interest charges imposed by theAssociation pursuant to Section 5158.3-102(a)(10), (1 1 ) and (12) of MCIOA are liens, and are enforceabteas Assessments, under this Section 6. Recording of this Declaration constitutes record notice andperfection of any lien under this Section 6, and no further recordation of any notice of or claim for the lienis required. The release of the lien shall not release the Owner from personal liability unless agreed to inwriting by the Association. The attorneys' fees and costs incurred by the Association to prepare andrecord a lien notice or a satisfaction or release of the lien shall be the personal obligation of the Owner ofthe Unit that is subject to the lien, and shall be part of the amount of the lien,6.10 Foreclosure of Lien; Remedies. A lien for Assessments may be foreclosed against a Unitunder the laws of the State of Minnesota (i) by action, or (ii) by advertisement in a like manner as amortgage containing a power of sale; provided, however, that in a foreclosure by advertisement, theforeclosing party shall be entitled to costs and disbursements of foreclosure and attorneys' fees authorizedby this Declaration or Bylaws, notwithstanding the provisions of Minnesota Statutes Section 582.0'1,subdivisions 1 and '1a,, and in a foreclosure by action, the foreclosing party shall be entitled to costsanddisbursements of foreclosure and attorneys' fees as the court shall determine, The Association, or itsauthorized representative, shall have the power to bid in at the foreclosure sale and to acquire, hold, lease,mortgage and convey any Unit so acquired. The Owner and any other Person claiming an interest in theUnit, by the acceptance or assertion of any interest in the Unit, grants to the Association a power of saleand full authority to accomplish the foreclosure. The Association shall, in addition to its other remedies,have the right to pursue any other remedy at law or in equity against the Owner who fails to pay anyAssessment or charge against the Unit.6.11 Lien Priority; Foreclosure. A lien for Assessments is prior to all other liens andencumbrances on a Unit except (i) liens and encumbrances recorded before this Declaration; (ii) any firstmortgage on the Unit; and (iii) liens for real estate taxes and other governmental assessments or chargesagainst the Unit, Notwithstanding the foregoing, if (i) a first mortgage on a Unit is foreclosed; (ii) the firstmortgage was recorded on or after the date of recording of this Declaration; and (iii) no Owner or Person11
who acquires the Owner's interest in the Unit redeems pursuant to Minnesota Statutes Chapters 580, 581,or 582; then the holder of the sheriffs certificate of sale from the foreclosure of the first mortgage or anyPerson who acquires title to the Unit by redemption as a junior creditor shall take title to the Unit subject toa lien in favor of the Association for unpaid Assessments or installments thereof levied pursuant to Sections5158.3-1151(a), (e)(1) to (3), (f) and (i) of MCIOA which became due, without acceleration, during the six(6) months immediately preceding the first day following the end of the Owner's period of redemption Theamount of the unpaid Assessments shall be determined based upon the Association's then current annualbudget.6,12 Real Estate Taxes and Assessments. Realestate taxes, governmental specialassessments,and other charges and fees which may be levied against the Common Elements by governmentalauthorities, shall be allocated equally among and levied against the Units, and shall be a lien against eachUnit in the same manner as a lien for real estate taxes and special assessments levied against the Unitalone.6 '13 Voluntary Conveyances; Statement of Assessments. ln a voluntary conveyance of a Unit,the transferee of the Unit shall not be personally liable for any unpaid Assessments and other chargesmade by the Association against the transferor of that Unit or that Unit prior to the time of conveyanceto said transferee, unless expressly assumed by said transferee. However, the lien of such Assessmentsshall remain against the Unit until released. Any such transferor or transferee shall be entitled to astatement, in recordable form, from the Association setting forth the amount of the unpaid Assessmentsagainst the Unit, including all Assessments payable in the Association's current fiscal year, which statementshall be binding on the Association, such transferor and/or such transferee.SECTION 7RESTRICTIONS ON USE OF PROPERTYAll Owners and Occupants, and all secured parties, by their acceptance or assertion of an interestin the Property, or by their occupancy of a Unit, covenant and agree that, in addition to any otherrestrictions which may be imposed by MCIOA or the Governing Documents, the occupancy, use,operation, alienation and conveyance of the Property shall be subject to the following restrictions:7.1 General. The Property shall be owned, conveyed, encumbered, leased, used andoccupied subject to the Governing Documents and MCIOA, as amended from time to time. All covenants,restrictions and obligations set forth in the Governing Documents are in furtherance of a plan for theProperty, and shall run with the Property and be a burden and benefit to all Owners and Occupants andto any other Person acquiring or owning an interest in the Property, their heirs, personal representatives,successors and assigns.7.2 Certain Subdivisions and Conveyances Prohibited. Except as permitted by thisDeclaration, no Unit nor any part of the Common Elements may be subdivided or partitioned without theprior written approval of the Owners at an Association meeting, and any secured parties holding firstmortgages on any Units affected.7.3 Residential Use. The Units shall be used by Owners and Occupants and their guestsexclusively as private, single family residential Dwellings, and not for transient, hotel, commercial,L2
business or other non-residential purposes, except as provided in Section 7.4. The number of occupantsper Unit may be restricted in accordance with any applicable municipal ordinances and standardsacceptable under applicable federal and state law.7.4 Business Use Restricted. No business, trade, occupation or profession of any kind,whether carried on for profit or othenruise, shall be conducted, maintained or permitted in any Dwellingor Unit or the Common Elements, except:7.4.1 An Owner or Occupant may maintain a home occupation in such Owneror Occupant's Dwelling, provided, that such use ii) is incidental to the residential use; (ii) does not involvephysical alteration of the Dwelling or Unit visible from the exterior; (iii) is in compliance with all governmentallaws, ordinances and regulations; (iv) does not involve observable business activity such as signs,advertising displays, business-related deliveries, or unusual levels of pedestrian orvehicular traffic to andfrom the Unit; and (v) does not otheruvise involve activity which disturbs the quiet enjoyment of theProperty by other Owners or Occupants.7.4.2 The Association may maintain offices on the Property for management and relatedpurposes7.4.3 Declarant may maintain offices, models, sales and rental facilities and otherbusiness facilities on the Property in connection with the exercise of its Special Declarant Rights reservedherein.7.5 Leasing. Leasing of Units shall be allowed, subject to reasonable regulation by theAssociation, and subject to the following conditions: (i) no Unit shall be leased for transient or hotelpurposes; (ii) no Unit may be subleased; (iii) a Dwelling must be leased in its entirety (not by room) unlesssimultaneously occupied by the Owner; (iv) the lease shall be in writing; and (v) the lease shall providethat it is subject to the Governing Documents, the Rules and Regulations and MCIOA, and that any failureof the lessee to comply with the terms of such documents shall be a default under the lease. TheAssociation may impose such reasonable Rules and Regulations as may be necessary to implement non-discriminatory procedures for the leasing of Units, consistent with this Section and applicable law.7.6 Storage and Parking. Personal property may not be stored, displayed or othenruise leftoutside the Dwellings, except as authorized by the Board. The streets, walkways; driveways and portionsof the Common Elements used for access to and from the Units, may not be obstructed, or used forstorage, activities or any purpose other than access and authorized parking. Garages and parking areason the Property shall be used only for parking of vehicles owned or leased by Owners and Occupants andtheir guests, and such other incidental uses as may be authorized by this Declaration or in writing by theBoard. Garages shall not be converted to other uses or used for storage or other purposes which wouldpreventthe parking of a fullsize automobile in each garage stall, The use of driveways and parking areason the Property, and the types of vehicles and personal property permitted thereon, shall be subject toregulation by the Association, including without limitation the right of the Association to tow illegally parkedvehicles or to remove unauthorized personal property.7.7 Animals. The Board shall have the exclusive authority to prohibit, or to allow and regulate,by Rules and Regulations, the keeping of animals on the Property. This authority may be exercised so asto permit or prohibit different types of animals, but those animals which are permitted (if any) shall belimited to common domestic house pets such as dogs, cats, fish, birds and the like. However,i3
no animal may be bred, or kept or maintained for business or commercial purposes, anywhere on theProperty, The word "animal" shall be interpreted in its broadest sense and shall include all living creaturesexcept humans. Notwithstanding the foregoing, no Rule and Regulation may prohibit the keeping of aqualified service dog or similar animal by a person who is handicapped within the meaning of the FairHousing Amendments Act of 1988 or comparable state law.7.8 Quiet Enjoyment; Prohibited Conduct. All Owners and Occupants and their invitees shallhave a right of quiet enjoyment in their respective Units, subject to the rights of other Owners andOccupants to reasonable use of their respective Units and to the normal and customary sights, sounds,odors and activity generated thereby given the high density living environment associated with the natureof the Property. Given the foregoing considerations, Owners and Occupants shall use the Property in sucha manner as will not cause a nuisance, nor unduly restrict, interfere with or impede the use and quietenjoyment of the Property by other Owners and Occupants and their guests. No Owner or Occupant shall(i) cause or permit any physical changes to their Dwelling that could jeopardize or impair the weather-tight soundness or safety of the Dwelling, any building system, or other improvement located on theProperty; (ii) interfere with any easement; or (iii) cause or permit any physical changes to their Dwellingwhich would impair the sound insulation qualities of the Dwelling, including, but not limited to, theinstallation, in the Unit's perimeter walls, floors or ceilings, of speakers or other sound emitting devices.7.9 Compliance with Law. No use shall be made of the Property which would violate any thenexisting municipal codes or ordinances, or state or federal laws, nor shall any act or use be permitted whichcould cause waste to the Property, cause a material increase in insurance rates on the Property, orothenruise cause any unusual liability, health or safety risk, or expense; for the Association or any Owneror Occupant.7.10 Architectural Restrictions. Except for those made by Declarant in connection with theexercise of its Special Declarant Rights, no alterations (as defined in Section 8) shall be made, or causedor allowed to be made, in any part of the Common Elements, Limited Common Elements or in any part ofthe Unit or Dwelling which affects the Common Elements or another Unit or which is visible from the exteriorof a Dwelling, without the prior written authorization of the Board as provided in Section 8.7.11 Time Shares Prohibited, The time share form of ownership, or any comparable form oflease, occupancy rights, ownership, or right-to-use plans, which has the effect of dividing the ownershipor occupancy of a Unit into separate time periods, is prohibited.7.12 Access to Units. ln case of emergency, the Units and Limited Common Elements aresubject to entry, without notice and at any time, by an officer or member of the Board, by the Association'smanagement agents or by any public safety personnel, Entry is also authorized for maintenance purposesunder Sections 9 and '12, and for enforcement purposes under Section 137 .13 Delegation of Use. Subject to the restrictions set forth in Section 7.5, an Owner maydelegate, in accordance with the Governing Documents, the Owner's right of use and enjoyment of suchOwner's Unit to a tenant or other Occupant pursuant to a legal right of possession; provided, that suchtenant or other Occupant shall be subject to the Governing Documents the Rules and Regulations, andMCIOA. lf a tenant or other Occupant has been given the legal right to possess the Owner's Unit (and ifsuch possession is in accordance with, and allowed by, the provisions of Section 7.5, then the tenant orother Occupant shall have the right to use any common recreational facilities, parking, storage, and otheramenities on the Property in lieu of the Owner of such Unit.I4
7.14 Trash CansiReceptacles. Alltrash cans/receptacles may be temporarily placed outside ofthe Dwelling on the day of trash pickup in a location which allows for reasonable access by a trash collectionprovider. The trash can/receptacles shall not be temporarily placed in a manner which limits, restricts orothenvise prevents use of the Private Drive for access purposes or access to any driveway. TheAssociation may adopt Rules and Regulations providing further obligations regarding placement of trashcans/receptacles.sEcTtoN 8ARCH ITECTU RAL STANDARDS8.1 Restrictions on Alterations. One of the purposes of this Declaration is to ensure that thoseparts of the Dwellings and other parts of the Units which are visible from the exterior be keptarchitecturally attractive and substantially uniform in appearance. Therefore, the following restrictionsand requirements shall apply to alterations on the Property, except as set forth in Section 8.6:8,1.1 Except as expressly provided in this Section 8, no structure, building, addition,deck, patio, fence, wall, enclosure, window, exterior door, antenna or other type of sending or receivingapparatus, sign, display, decoration, color change, shrubbery, material topographical or landscapingchange, nor any other exterior improvements to or alteration of any Dwelling, including but not limitedto its roof top deck, or any other part of a Unit which affects the Common Elements, Limited CommonElements or another Unit, or which is visible from the exterior of the Dwelling (collectively referred to as"alterations"), shall be commenced, erected or maintained, unless and until the plans and specificationsshowing the nature, kind, shape, height, color, materials and locations of the alterations shall have beenapproved in writing by the Board or a committee appointed by it. ln addition, Declarant's written consentshall also be required for alterations so long as Declarant owns a Unit for sale or has a right to addAdditional Real Estate.8.1.2 The Board may appoint, supervise and disestablish an architectural committee,and specifically delegate to it part or all of the functions which the Board exercises under this Section 8,in which case the references to the Board shall refer to the architectural committee where appropriate.The architectural committee shall be subject to the supervision of the Board.8.1 .3 The Board shall establish the criteria for approval of alterations, which shall includeand require, ai a minimum:8.1.3.1 substantial uniformity of color, type and design in relation to existingDwellings and other improvements to the Property;8.1.3.2 comparable or better quality of materials as used in existingimprovements on the Property;8.1 .3.3 ease of maintenance and repair;8.1.3.4 adequate protection of the Property, the Association, Owners andOccupants from liability and liens arising out of the proposed alterations;15
8.1.3.5 substantial preservation of other Owners' sight lines, if material;8.1,3.6 substantial preservation of trees, vegetation and shorelines; and8.1.3.7 compliance with governmental laws, codes and regulations.The Board, or the appointed architectural committee if so authorized by the Board, in its solediscretion, may impose standards for design, appearance, construction, or development which aregreater or more stringent than standards prescribed by the Governing Documents, or by building,zoning, or other governmental laws, codes, or regulations; provided that such standards shall beconsistent with the architectural character and use of the Property as planned and developed bythe Declarant. The Board, orthe appointed architectural committee if so authorized by the Board,shall be the sole judge of whether such criteria are satisfied, and its determination in this regardshall be binding upon the Owner.8.1.4 Approval of alterations which cause a minor encroachment upon the CommonElements or another Unit shall create an appurtenant easement for such encroachment in favorof the Unit with respect to which the alterations are approved, notwithstanding any contraryrequirement in the Governing Documents or MCIOA, A file of the Board resolutions approving ordenying all requests for alterations shall be maintained permanently as a part of the Association'srecords.8.2this SectionReview Procedures. The following procedures shall govern requests for alterations under8.2.1 Detailed plans, specifications and related information regarding any proposedalteration, in form and content acceptable to the Board, shall be submitted to the Board and to Declarant(if applicable) at least thirty (30) days prior to the projected commencement of construction. No alterationsshall be commenced prior to approval.8.2.2 The Board and Declarant (if applicable) shall give the Owner written notice ofapproval or disapproval. The Board shall have the right and authority to approve, conditionally approveor deny requests for alterations in its sole absolute discretion. lf the Board and Declarant (if applicable)fail to approve or disapprove within thirty (30) days after receipt of said plans and specifications and allother information requested by the Board and Declarant (if applicable), then approval shall be deemed tobe denied.8.2.3 lf no request for approval is submitted, approval shall be deemed to be denied.B 3 Remedies for Violations. The Association may undertake any measures, legal, equitableor administrative, to enforce compliance with this Section and shall be entitled to recover from the Ownercausing or permitting the violation all attorneys' fees and other professional fees and costs of evaluation,investigation and enforcement incurred by the Association, whether or not a legal action is started. Suchfees and costs shall be a lien against the Owner's Unit and a personal obligation of the Owner. ln addition,upon reasonable notice, the Association shall have the right to enter the Owner's Unit and to restore anypart of the Dwelling or Unit to its prior condition if the alterations were made in violation of this Section,and the cost of such restoration shall be a personal obligation of the Owner and a lien against the Owner'sUnit.16
8'4 Owner Responsibility/lndemnity. The Owner who causes an alteration to be made,regardless of whether the alteration is approved by the Board, shall be responsible for the constructionwork and any claims, damages, losses or liabilities arising out of the alterations, and to ensure that thework approved by it satisfies all applicable municipal requirements. The Owner shall hold harmless,indemnify and defend Declarant, the Association, and their respective officers, directors and committeemembers, from and against any expenses, claims, damages, losses or other liabilities, including withoutlimitation attorneys' fees and other professional fees and costs, arising out of (i) any alteration whichviolates any governmental laws, codes, ordinances or regulations; (ii) the adequacy of the specificationsor standards for construction of the alterations; and (iii) the construction of the alterations.8'5 Review Fees. The Board may adopt a schedule of reasonable fees for processingapplications for architectural approval. The fees, if any, shall be payable to the Association at the timethat the application is submitted to the Board. The fees, as well as other expenses of the Board requiredto be paid, shall be deemed to be an Assessment against the Unit with respect to which the application ismade8.6 Exemptions. The requirements set forth in this Section 8 (except Section 8,4) shall notapply to the following:8.6.1 Construction undertaken or authorized by Declarant in connection with itscompletion of Common Element improvements and the completion and sale of the Dwellings and Units.8.6.2 Certain types of antennae and satellite dishes may be installed, followingapplication to the Board, to the extent permitted by federal law and the Rules and Regulations consistenttherewith.SECTION 9MAINTENANCE AND REPAIR9.1 Maintenance by the Association. The Association shall provide for all maintenance, repairor replacement (collectively referred to as "maintenance") of the Common Elements, if any, orMaintenance required by the Easement Declaration, if any. ln addition, for the purpose of preserving thearchitectural character, quality, and high standards for appearance of the Property, the Association shallprovide for exterior maintenance upon the Dwellings and/or Units, subject to the following:9.1.1 The costs associated with the Association's maintenance obligations under thisSection 9.1 shall be funded by Assessments levied in accordance with Section 6.2,6.3 or 6.4, asdetermined by the Board or required by said Sections.9.1.2 The Association shall maintain, repair and replace roofs, gutters, downspouts,exterior siding and other building surfaces, driveways and sidewalks. ln addition, the Association shallprovide for routine lawn maintenance and mowing on the yard areas of the Units (excluding trees, shrubsand similar plantings), for the watering of lawns, and for snow removal on private drives, driveways, stoopsand walkways.17
9.1 .3 The Association shall maintain, repair and replace garage doors and exterior entrydoors and frames (except hardware and mechanical equipment), porches, patios, decks and chimneyexteriors, if any.9.1.4 The Association shall maintain the Private Road, private utilities, stormwaterfacilities, lift station and retaining walls (if any).9.1.5 The Association may, upon thirty (30) days'prior notice to the Owner, alsoundertake any exterior maintenance for which an Owner is obligated under Section 9.3 and which theOwner fails to perform to standards established by the Association, and assess the Owner's Unit for thecost thereof. Such cost shall be a personal obligation of the Owner and a lien against the Owner's Unit.9.1 .6 The Association may elect to maintain, repair or replace mechanical, structural orother components within the Unit and assess the costs against the Unit, if the failure or imparrment ofthe component could result in damage to the Common Elements or other Units, impair the function of anycommon operating system, or create a health or safety hazard.9.1.7 The Association shall perform any maintenance obligation it may have undertheEasement Declaration, if any, and any agreement, now or hereafter entered into, with the City.9.1 .B The Association shall maintain, repair and replace the Property in accordance withthe requirements of the applicable City zoning approvals and permits and other applicable regulations.9.1.9 The Association shall maintain, repair and replace the Common Elements andother portions of the Property for which it is responsible in accordance with (i) the Association's writtenpreventative maintenance plan and maintenance schedule prepared and approved by the Board pursuanttoandinaccordancewiththerequirementsof Section5158.3-107(b) of MCIOA; and(ii)therequirementsof the applicable City zoning approvals and permits and other applicable regulations.9.1.10 The Association's obligations for maintenance shall exclude any items notspecifically required to be maintained by the Association under this Section 9.'1, including but not limitedto foundations and foundation walls, Dwelling walls, floors and ceilings, structural components, Dwellinginteriors, door and window hardware, windows, mechanical, electrical, heating, air conditioning andplumbing systems, private fences, screens, glass and deck surfaces, unless such items are approved underSection 9.2.9.2 Optional Maintenance by Association. ln addition to the maintenance described in Section9,'1, the Association may, with the approval of the Board and a majority of the totalOwners'votes in theAssociation, undertake to provide additional exterior maintenance to the Units or Dwellings.Maintenance by Owner. Except for the exterior maintenance required to be provided by the Associationunder Section 9.1 or 9,2, all maintenance of the Dwellings and Units shall be the sole responsibility andexpense of the Owners thereof. Subject to Section 9.1 .2, the Limited Common Elements allocated to a Unitshall be maintained by the Owner of that Unit, The Association may require that any exterior maintenanceto be performed by the Owner be accomplished pursuant to specific uniform criteria established by theAssociation. The Association shall have the right, but not the obligation, to perform any maintenancewhich an Owner or Occupant is required, but fails or neglects to perform under the GoverningDocuments or the Rules and Regulations, upon written notice to the offending Owner or Occupant. lf18
the Association performs any such neglected maintenance, the Association may assess the Owner's Unitfor the cost thereof. Such costs shall be a personal obligation of the Owner and a lien against the Owner'sUnit.9.3 Damage Caused by Owner. Notwithstanding any provision to the contrary in thisDeclaration, if, in the judgment of the Association, the need for maintenance of any part of the Propertyis caused by the act or omission of an Owner or Occupant, or his or her guests, or by a condition in a Unitwhich the Owner or Occupant has caused or allowed to exist after notice from the Association, theAssociation may cause such damage or condition to be repaired or corrected (and enter the yard area ofupon any Unit to do so), and the cost thereof may be charged and assessed against the Unit of the Ownerresponsible for the damage. Such cost shall be a personal obligation of the Owner and a lien against theOwner's Unit.9.4 lntentionally omittedSECTION 1OINSURANCE1 0.1 Required Coverage. The Association shall obtain and maintain, at a minimum, a masterpolicy or policies of insurance in accordance with the tnsurance requirements set forth in MCIOA and theadditional requirements set forth herein, issued by a reputable insurance company or companiesauthorized to do business in the state of Minnesota, as follows:10.1.1 Property insurance in broad form covering risks of physical loss in an amountequal to one hundred percent (100%) of the insurable "replacement cost" of the Property, less deductibles,exclusive of land, footings, excavation and other items normally excluded from coverage (but including allbuilding service equipment and machinery). The Association may or may not, as determined by the Board,insure the improvements and betterments referred to in Section 5158.3-1 l3tbxi) through(vii) of MCIOA, but must do so if required by the FNMA, FHLMC, FHA or VA as referred to hereafter, Thepolicy or policies shall cover personal property owned by the Association. The policy or policies shall alsocontain "lnflation Guard" and "Agreed Amount" endorsements, if reasonably available. Such policy orpolicies shall include such additional endorsements, coverages and limits with respect to the foregoing andother hazards as may be required from time to time by the Federal Housing Administration ("FHA"), theU.S. Department of Veterans' Atfairs {"VA"), the Federal National Mortgage Association ("FNMA") or theFederal Home Loan Mortgage Corporation ("FHLMC") as a precondition to their insuring, purchasing orfinancing a mortgage on a Unit. The Board may also, on behalf of the Association, enter into binding writtenagreements with a mortgagee, guarantor, insurer or servicer, including without limitation the FHA, VA,FNMA or FHLMC, obligating the Association to keep certain specified coverages or endorsements in effect.10.1.2 Commercial general liability insurance covering the use, operation andmaintenance of the Common Elements and the activities of the Association, with minimum limits of$1,000,000.00 per occurrence, against claims for death, bodily injury and property damage, and such otherrisks as are customarily covered by such policies for projects similar in construction, location and use tothe Property. The policy shall contain a "severability of interest" endorsement which shall preclude theinsurer from denying the claim of an Owner or Occupant because of negligent acts of the Association orother Owners or Occupants. The policy shall include such additional endorsements, coverages and19
limits with respect to such hazards as may be required by the regulations of the FHA, VA, FNMA or FHLMCas a precondition to their insuring, purchasing or financing a mortgage on a Unit,10.1 .3 Fidelity bond or insurance coverage against dishonest acts on the part of directors,officers, managers, trustees, employees or persons responsible for handling funds belonging to oradministered by the Association, if deemed to be advisable by the Board or required by the regulatrons ofany financing-related institution as a precondition to the purchase, insuring, guarantee, or financing of amortgage on a Unit. The fidelity bond or insurance shall name the Association as the named insured, andshall comply with the regulations of the FNMA, FHA, VA or FHLMC, respectively, if required by such agencyas a precondition to its purchase, financing, insuring, or guaranteeing of a mortgage on a Unit. Anappropriate endorsement to the policy to cover any persons who serve without compensation shall beadded if the policy would not othenvise cover volunteers, or a waiver of defense based upon the exclusionof persons serving without compensation shall be added.10.1.4 Workers'Compensation insurance as applicable and required by law10.1 .5 Directors' and officers' liability insurance with such reasonable limits andcoverages as the Board shall determine from time to time.10.16 Such other insurance as the Board may determine from time to time to be in thebest interests of the Association and the Owners,1O.2 Premiums; lmprovements; Deductibles. Except as provided in Section 6.4 and thisSection, all insurance premiums shall be assessed and paid as an annual Assessment. Policy deductibleamounts shall be determined by the Board. lf improvements and betterments to the Units are covered, anyincreased cost may be assessed against the Units affected The Association may, in the case of a claim fordamage to a Unit or Units, (i) pay the deductible amount as a Common Expense; (ii) assess the deductibleamount against the Unit or Units affected in any reasonable manner; or (iii) require the Owner of any Unitaffected to pay the deductible amount directly. The Association's decision as to who shall be charged withpaying the deductible amount may, but need not, be based on fault,10.3 Loss Payee; lnsurance Trustee. All insurance coverage maintained by the Association shallbe written in the name of, and the proceeds thereof shall be payable to, the Association (or a qualifiedinsurance trustee selected by it) as trustee for the benefit of the Owners and secured parties which sufferloss. The Association, or any insurance trustee selected by it, shall have exclusive authority to negotiate,settle and collect upon any claims or losses under any insurance policy maintained by the Association.10.4 Required Policy Provisions. All policies of property insurance carried by the Associationshall provide that:10.4.1 Each Owner and secured party is an insured Person under the policy with respectto liability arising out of the Owner's interest in the Common Elements or membership in the Association10.4.2 The insurer waives its right to subrogation under the policy against any Owner ormember of the Owner's household and against the Association and members of the Board.10.4.3 The coverage shall not be voided by or conditioned upon (i) any act or omissionof an Owner or mortgagee, unless acting within the scope of authority on behalf of the Association, or (ii)20
any failure of the Association to comply with any warranty or condition regarding any portion of theProperty over which the Association has no control.1A.4.4 lf at the time of a loss under the policy there is other insurance in the name of anOwner covering the same property covered by the policy, the Association's policy is primary.10.5 Cancellation; Notice of Loss, Property insurance and comprehensive liability insurancepolicies maintained by the Association shall provide that the policies shall not be canceled or substantiallymodified, for any reason, without at least thirty (30) days' prior written notice to the Association and toall secured parties holding first mortgages on Units.10.6 Restoration in Lieu of Cash Settlement. All policies of property insurance maintained bythe Association shall provide that, despite any provisions giving the insurer the right to elect to restoredamage in lieu of a cash settlement, such option shall not be exercisable (i) without the prior writtenapproval of the Association (or any insurance trustee), or (ii) when in conflict with provisions of anyinsurance trust agreement to which the Association may be a party, or any requirement of law.10.7 Owner's Personal lnsurance. Each Owner shall obtain additional personal insurancecoverage (commonly known as "gap coverage" or an "HOG" policy) at his or her own expense covering (atminimum) fire and other casualty to the interior of the Unit, personal property and the Owner's personalliability. lnsurance policies maintained by Owners are without contribution as against the insurancepurchased by the Association, except as to deductible amounts or other items not covered under theAssociation's policies.10.8 Notice to Declarant. Recognizing that the Declarant is obligated to disclose to prospectivepurchasers the Association's projected budget, it is important that Declarant be advised of any budgetchanges following the termination of the Declarant Control Period. Accordingly, the Association shallgiveDeclarant at least thirty (30) days prior written notice of any change in the Association's insurance policiesuntil Declarant no longer owns any Unit for initial sale and no longer has the right to add Additional RealEstate to the Property.sEcloN 11RECONSTRUCTION, CONDEMNATION AND EMINENT DOMAIN11.1 Reconstruction. The obligations and procedures for the repair, reconstruction ordisposition of the Property following damage or destruction thereof shall be governed by MCIOA. Anyrepair or reconstruction shall be commenced as soon as practicable after the casualty and shall besubstantially in accordance with the plans, specifications and design of the Property as initially constructedand subsequently improved. Notice of substantial damage or destruction shall be given as provided inSection 15.11.2 Condemnation and Eminent Domain. ln the event of a taking of any part of the Propertyby condemnation or eminent domain, the provisions of MCIOA shall govern; provided, (i) that notice shallbe given as provided in Section 15; (ii) that the Association shall be the attorney-in4act to represent theOwners in any related proceedings, negotiations, settlements or agreements; and (iii) that any awards orproceeds shall be payable to the Association for the benefit of the Owners and the mortgagees of their2L
Units. Mortgagees shall be entitled to priority for condemnation awards in accordance with the prioritiesestablished by MCIOA and the Governing Documents, as their interests may appear.I 1.3 Termination and Liquidation. The termination of the common interest community, and thedistribution of any proceeds therefrom, shall be governed by MCIOA. Any distribution of funds shall bebased upon the value of the Units as determined by their relative value for property insurance purposes,and shall be made to Owners and their mortgage holders, as their interests may appear, as provided inMCIOA.11.4 Notice. The Association shall give written notice of any condemnation proceedings orsubstantial destruction of the Property to the Mortgagees entitled to notice under Section 1 5.11.5 Association's Authority. ln all cases involving reconstruction, condemnation, eminentdomain, termination or liquidation of the common interest community, the Association shall haveauthority to act on behalf of the Owners in all proceedings, negotiations and settlement of claims. Allproceeds shall be payable to the Association to hold and distribute for the benefit of the Owners and theirmortgage holders, as their interests may appear, in accordance with MCIOA.SECTION 12EASEMENTSEach Unit and the Common Elements, and the rights of the Owners and Occupants therein, shallbe subject to or beneficiary of (i) intentionally omitted; (ii) the appurtenant easements and rights grantedand reserved in this Section 12', and (iii) other appurtenant easements and rights of record as referencedherein.12.1 Access, Each Unit shall be the beneficiary of nonexclusive easements for access to andfrom a public roadway on and across those portions of the Common Elements, if any, or land subject toan Easement Declaration, if any, designated for use as roadways or walkways, as originally constructed,shown on the Plat or otherwise designated by the Association, subject to any restrictions authorized bythe Governing Documents or the Rules and Regulations.12.2 Use and Enjoyment. Each Unit shall be the beneficiary of nonexclusive easements for useand enjoyment on and across the Common Elements, if any, and for use and enjoyment of any LimitedCommon Elements allocated to the Unit, subject to any restrictions authorized by the GoverningDocuments.12.3 Structural Support. Each Unit and the Common Elements shall be subject to and thebeneficiary of nonexclusive easements for structural support in all walls, columns, joists, girders and otherstructural components located in or passing through or shared with another Unit or the Common Elements,if any.12.4 Encroachments. Each Unit and the Common Elements, if any, and the rights of theOwners and Occupants therein, shall be subject to nonexclusive easements in favor of the adjoining Unitsfor minor encroachments caused by the construction, reconstruction, repair, shifting, settlement ormovement of any part of the Property, and for improvements which are part of the original constructionof the Property or which are added in compliance with Section 8. lf there is an encroachment upon22
another Unit or the Common Elements as a result of any of the aforementioned causes, an appurtenanteasement shall exist forthe encroachment, for the use, enjoyment and habitation of any encroachingimprovement, and for the maintenance thereof. However, with respect to improvements or alterationsadded pursuant to Section 8, no easement shall exist unless the resulting encroachment is minor and theproposed improvements have been approved and constructed as required by this Declaration. Sucheasements shall continue for as long as the encroachment exists and shall not affect the marketability oftitle.12'5 Drainage. The Common Elements, if any, and the yard areas of the Units shall be subjectto nonexclusive easements for storm water drainage over those parts of the property which are designed,improved or graded for such purposes.12'6 Maintenance, Repair, Replacement and Reconstruction. Each Unit, and the rights of theOwners and Occupants thereof, and the Common Elements if any, shall be subject to and benefited bynonexclusive easements in favor of the Association for the maintenance, repair, replacement andreconstruction of the Common Elements, the Dwellings and other improvements located within the Units,and utilities serving the Units, to the extent necessary to fulfill the Association's obligations under theGoverning Documents. Each Owner shall afford to the Association and its management agents andemployees, access at reasonable times and upon reasonable notice, to and through the Unit and its LimitedCommon Elements for maintenance, repair and replacement; provided that access may be had withoutnotice and at any time in case of emergency.12.7 Utilities Services and Operating Systems. The Common Elements, if any, and the Unitsshall be subject to and benefited by nonexclusive easements in favor of the City, the Association and allutility companies and other service providers for the installation, use, maintenance, repair and replacementof all utilities, services and common operating systems, such as natural gas, electricity, telephone, cableTV, internet and other electronic communications, water, sewer, septic systems, wells, and similar services,irrigation systems, fire control systems and other common operating systems, and metering and controldevices, which exist which are constructed as part of the development of the Property or the AdditionalReal Estate, which are approved by the City, which are approved by the Association under authoritycontained in the Governing Documents or MCIOA, or which are described or referred to in the plat, thisDeclaration or other recorded instruments. Each Unit, and the rights of the Owners and Occupants thereof,shall also be subject to and benefited by a non-exclusive easement in favor of the other Units, the CommonElements and the Association for all such utilities, services and systems installed in accordance with theforegoing provision of this Section. Utilities and related services or systems shall be installed, used,maintained and repaired so as not to interfere with the use and quiet enjoyment of the Units by the Ownersand Occupants, nor affect the structural or architectural integrity of the Dwellings or Common Elementimprovements.12.8 Emergency Access to Units. ln case of emergency, all Units, Dwellings and LimitedCommon Elements are subject to an easement, without notice and at any time, in favor of the Associationfor access by the Association's management agents, and in favor of fire, police or other public safetypersonnel.12.9 Project Signs. Declarant and the Association shall have a non-exclusive easement andright to erect and maintain temporary and permanent signs for business, operational or constructionrelated purposes and monuments identifying the common interest community on the Common Elements,and Declarant shall have such rights on Units owned by Declarant. Those parts of the Property on which23
permanent monument signs or related improvements are located shall be subject to non-exclusiveeasements in favor of the Association for the continuing use, maintenance, repair and replacement of saidsigns and improvements.12.10 Maneuvering and Driveway Easements. lf any Unit shares a driveway, or a portion thereof,with another Unit, each such Unit shall be subject to and the beneficiary of a non-exclusive easement forreasonable vehicular maneuvering and access on and across the shared driveway, subject to anyrestrictions authorized by the Governing Documents or the Rules and Regulations.12.11 Easement Declaration lntentionally omitted12.12 Declarant's Easements. The Units and Common Elements are subject to exclusiveeasements in favor of the Declarant for the exercise of its Special Declarant Rights as described in theGoverning Documents and for periodic inspection and for purposes of performing maintenance and repairof the Units and Common Elements during any warranty periods.12.13 Other Easements and Restrictions, The Property shall be subject to such other easementsand restrictions that are referenced in the Governing Documents or MCIOA or recorded against theProperty by reason of the City's requirements in connection with the development of the Property or theAdditional Real Estate12.14 Continuation, Scope and Conflict of Easements. The easements set forth in this Section(i) shall run with the land and shall be appurtenant to the benefited Property; (ii) shalt supptement andnot limit any easements described elsewhere in this Declaration or othenvise recorded; (iii) shall bepermanent, subject only to termination in accordance with the terms of the easement; and (iv) shallinclude reasonable access to the easement areas over and through the Property for purposes ofconstruction, maintenance, repair, replacement and reconstruction. Notwithstanding anything in thisDeclaration to the contrary, no Owner or Occupant shall be denied reasonable access to his or her Unit orthe right to utility services thereto.12.15 Non lnterference; lmpairment Prohibited. All Persons exercising easement rights shall doso in a reasonable manner so as not to materially interfere with the operation of the Property or causedamage to the Property, and shall be financially liable for all costs of repair of any part of the Propertywhich is damaged by the Person's exercise of the easement rights. No Person shall impair, obstruct orcause damage to any easement area, or improvements or equipment installed therein.12.16 Benefit of Easements, All easements benefiting a Unit shall benefit the Owners andOccupants of the Unit, and their families and guests. However, an Owner who has delegated the right tooccupy the Unit to an Occupant or Occupants, whether by a lease or otherwise, does not have the use andother easements rights in the Property during such delegated occupancy, except (i) as a guest of an Owneror Occupant, or (ii) in connection with the inspection of the Unit or recovery of possession of the Unitpursuant to law.24
SECTION 13COMPLIANCE AND REMEDIESEach Owner and Occupant, and any other Person owning or acquiring any interest in the Property,shall be governed by and comply with the provisions of MCIOA, the Governing Documents, the Rules andRegulations, and such amendments thereto as may be made from time to time, and the decisions of theAssociation with respect to matters over which the Association has authority. A failure to comply shallentitle the Association to the relief set forth in this Section, in addition to the rights and remedies authorizedelsewhere by the Governing Documents, the Rules and Regulations or McloA.13.1 Entitlement to Relief, Legal relief may be sought by the Association, at its discretion,against any Owner, or by an Owner against the Association or another Owner, to enforce compliance withthe Governing Documents, the Rules and Regulations, MCIOA or the decisions of the Association.However, no Owner may withhold any Assessments payable to the Association, nor take or omit otheraction in violation of the Governing Documents, the Rules and Regulations or MCIOA, as a measure toenforce such Owner's position, or for any other reason.13.2 Remedies. ln addition to any other remedies or sanctions, expressed or implied,administrative or legal, the Association shall have the right, but not the obligation, to implement any oneor more of the following actions against Owners and Occupants and/or their guests, who violate theprovisions of the Governing Documents, the Rules and Regulations or MCIoA:13.2.1 Commence legal action for damages or equitable relief in any court of competentjurisdiction13.2.2 lmpose late fees or charges in the amount determined by the Board from time totime, for each past due Assessment or installment thereof, and impose interest at the highest ratepermitted by law accruing beginning on the first day of the month after the Assessment or installmentwas due.13.2.3 ln the event of default of more than thirty (30) days in the payment of anyAssessment or installment thereof, all remaining installments of Assessments assessed against the Unitowned by the defaulting Owner may be accelerated and shall then be payable in full if alt delinquentAssessments or installments thereof, together with all attorneys' fees and other professional fees, costsand late charges, are not paid in full prior to the effective date of the acceleration. Not less than ten (10)days advance written notice of the etfective date of the acceleration shall be given to the defaulting Owner.13.2.4 lmpose reasonable fines, penalties or charges for each violation of MCIOA, theGoverning Documents or the Rules and Regulations.13.2.5 Suspend the rights of any Owner or Occupant and their guests to use anyCommon Element amenities; provided, that the suspension of use rights shall not apply to Limited CommonElements allocated to the Unit, and those portions of the Common Elements providing utilities service andaccess to the Unit. Such suspensions shall be limited to periods of default by such Owners and Occupantsin their obligations under the Governing Documents, and for up to six (6) months thereafter, for eachviolation25
13.2.6 Restore any portions of the Common Elements, Units or Limited CommonElements damaged or altered, or allowed to be damaged or altered, by any Owner or Occupant or theirguests in violation of the Governing Documents, and to assess the cost of such restoration against theresponsible Owners and their Units.13.2.7 Enter any Unit or Limited Common Element in which, or as to which, a violationor breach of the Governing Documents or the Rules and Regulations exists which materially affects, or islikely to materially affect, the health or safety of the other Owners or Occupants, or their guests, or thesafety or soundness of any Dwelling or other part of the Property or the property of the Owners orOccupants, and to summarily abate, remove or demolish, at the expense of the offending Owner orOccupant, any structure, thing or condition which is causing the violation; provided, that any improvementswhich are a part of a Dwelling may be altered, removed or demolished only pursuant to a court order orwith the agreement of the Owner.13.2.8 Foreclose any lien arising under the provisions of the Governing Documents orunder law, in the manner provided by the Governing Documents.'13.3 Rights to Hearing. Before the imposition of any of the remedies authorized by Section13'2'4, 13.2.5, 13.2.6 or 13.2,7, the Board shall, upon wrrtten request of the offender, grant to the offenderan opportunity for a fair and equitable hearing as contemplated by MCIOA. The offender shall be givennotice of the nature of the violation and the right to a hearing, and ten (1 0) days with in wh ich to req uest ahearing. The hearing shall be scheduled by the Board and held within thirty (30) days of receipt of thehearing request by the Board, and with at least ten (10) days' prior written notice to the offender. lf theoffender fails to timely request a hearing or to appear at the hearing, then the right to a hearing shall bedeemed waived and the Board may take such action as it deems appropriate. The decision of the Boardand the rules for the conduct of hearings established by the Board shall be final and binding on all parties.The Board's decision shall be delivered in writing to the offender within ten (10) days following the hearing,if not delivered to the offender at the hearing.13.4 Lien for Charges, Penalties, Etc. All charges, fines, expenses, penalties, interest or otherimpositions under this Section shall be a lien against the Unit of the Owner or Occupant against whom thesame are imposed and the personal obligation of such Owner in the same manner and with the samepriority and effect as Assessments under Section 6. The lien shall attach as of the date of imposition ofthe remedy, but shall not be final as to violations for which a hearing is held until the Board makes a writtendecision at or following the hearing. All remedies shall be cumulative, and the exercise of, or failure toexercise, any remedy shall not be deemed a waiver of the Association's right to pursue any others.13.5 Costs and Fees. With respect to any collection measures, or any other measure or action,legal, administrative, or otherwise, which the Association takes pursuant to the provisions of MCIOA, theGoverning Documents or Rules and Regulations, whether or not finally determined by a court orarbitrator, the Association may assess the Unit owned by the violator with any expenses incurred inconnection with such enforcement, including without limitation fines or charges previously imposed bythe Association, reasonable attorneys' and other professional fees, costs and interest (at the highest rateallowed by law)on the delinquent amounts owed to the Association. Such expenses shallalso include anycollection or contingency fees or costs charged to the Association by a collection agency or other personacting on behalf of the Association in collecting any delinquent amounts owed to the Association by an26
Owner or Occupant. The foregoing fees and costs shall be the personal obligation of the Owner of theUnit and shall be a lien against such Owner's Unit,13.6 Liability for Acts of Owners and Occupants. An Owner shall be liable for the expense ofany maintenance, repair or replacement of the Property rendered necessary by such Owner's acts oromissions, or by that of Occupants or guests in the Owner's Unit, to the extent that such expense is notcovered by the proceeds of insurance carried by the Association or such Owner or Occupant, However,any insurance deductible amount and/or increase in insurance rates, resulting from the Owner's acts oromissions may be assessed against the Owner responsible for the condition and against his or her Unit.13.7 Enforcement by Owners. The provisions of this Section shall not limit or impair theindependent rights of other Owners to enforce the provisions of the Governing Documents, the Rules andRegulations, and MCIOA as provided therein.13.8 Pre-Litigation Requirement. Notwithstanding anything to the contrary contained herein,any litigation, administrative proceeding or other legal action instituted or ihtervened in by or in the nameof the Association involving a construction defect claim as defined by Section 5158.1-103(1 1a) of MCIOArequires compliance with Sections 5158.3-102(d) and (e), and 5158.4-116(c) of MCIOA prior tocommencement.sEcTloN 14AMENDMENTS14.1 Approval Requirements. Except for amendments by Declarant pursuant to Section 16 oras othenruise provided in MCIOA, this Declaration may be amended only by the approval of:14.1.1 The Board14.1.2 Owners of Units to which are allocated at least sixty-seven percent (67%) of thetotal votes in the Association, except as othenvise provided in MCIOA.14.1.3 The percentage of Mortgagees (based upon one vote per Unit financed) as and ifrequired by Section 15.14.1.4 Declarant as to certain amendments as provided in Section 1614.2 Procedures. Approval of the Owners shall be obtained in in accordance with theprocedures set forth in the Bylaws. Consents of Mortgagees or Declarant, if required, shall be in writing,Any amendment shall be subject to any greater requirements imposed by MCIOA. The amendment shallbe effective when recorded as provided in MCIOA. An affidavit by the President or Secretary of theAssociation as to the outcome of the vote, or the execution of the foregoing approvals or consents, shallbe adequate evidence thereof for all purposes, including without limitation, the recording of the amendment.27
SECTION 15RIGHTS OF MORTGAGEESIt is important that individual mortgage loans on the Units be available to Owners and prospectiveOwners, and that, in order to enhance the availability of such financing the Governing Documents containqualification provisions that are acceptable to lenders, guarantors and insurers of Unit mortgage loans,such as FNMA, FHLMC and FHA. Accordingly, Mortgagees shall have the rights and protections set forthin this Section 15, which rights and protections shall control as against any other provisions of theGoverning Documents.15.1 Consent to Certain Amendments and Actions. ln addition to any additional requirementsimposed by this Declaration or by law, the consent of Mortgagees representing at least fifty-one percent{51o/o) of the votes allocated to Units that are subject to first mortgages held by Mortgagees (based uponone vote per Unit financed) shall be required for (i) any amendment to this Declaration or other GoverningDocuments of a material adverse nature to Mortgagees; and (ii) any action to terminate the commoninterest community after substantial destruction or condemnation occurs or other reasons agreed to by theforegoing percentage of Mortgagees. A Mortgagee shall be deemed to consent to and approve of any suchamendment or action in the event the Mortgagee fails to submit a written objection to the Associationwithin sixty {60) days after the Mortgagee receives notice of the same from the Association, by registeredor certified mail, with a return receipt requested,15.2 No Limitations on Sale/Right of First Refusal. The right of a Mortgagee to foreclose oraccept a deed in lieu of foreclosure on a Unit, or to sell, lease, transfer, or otherwise convey a Unit whichit acquires by foreclosure or deed in lieu of foreclosure, shall not be subject to any right of first refusal orsimilar restrictions.15.3 Priority of Lien. Any Mortgagee that comes into possession of a Unit by foreclosure of itsfirst mortgage on a Unit, or by deed or assignment in lieu of foreclosure of the first mortgage on the Unit,takes the Unit free of any claims for unpaid Assessments or any other charges or liens imposed againstthe Unit by the Association which have accrued against such Unit prior to the acquisition of possession ofthe Unit by said Mortgagee, (i) except as provided in Section 6.11 or in MC|OA, (ii) except that theMortgagee will be liable for any fees or costs of collection of the unpaid Assessments if the Association'slien priority includes such fees and costs, and (iii) except that any unreimbursed Assessments or chargesmay be reallocated among all Units in accordance with their interests in the common interest community.15.4 Priority of Taxes and Other Charges. Allgovernmental taxes, assessments, and chargeswhich may become liens against Units prior to the first mortgage under state law shall relate only to theindividual Units and not to the common interest community as a whole.15.5 Priority for lnsurance/Condemnation Proceeds. No provision of this Declaration or anyother Governing Documents shall give an Owner, or any other Person, priority over any rights of theMortgagee of a Unit pursuant to its mortgage in the case of a distribution to such Owner of insuranceproceeds or condemnation awards for losses to or a taking of the Unit and/or the Common Elements. TheAssociation shall give written notice to all Mortgagees of any condemnation or eminent domain proceedingaffecting the common interest community, promptly upon receipt of notice from the condemning authority,in accordance with Section 15.6.28
15.6 Notice Requirements. Mortgagees shall be entitled to timely written notice of:15.6.1 a condemnation loss or any casualty loss which affects a material portion of thecommon interest community or the Unit securing the mortgage;15.6.2 a sixty {60) day delinquency in the payment of Assessments or charges owed bythe Owner of a Unit on which it holds a mortgage;15.6.3 a lapse, cancellation, or material modification of any insurance policy maintainedby the Association; and15.6.4 a proposed action which requires the consent of a specified percentage ofMortgagees pursuant to Section 15.1.Any institutional insurerorguarantor of a mortgage on a Unitshallalso be entitled to notice of theforegoing events or actions.SECTION ,16SPECIAL DECLARATION RIGHTSDeclarant hereby reserves exclusive and unconditional authority to exercise the following SpecialDeclarant Rights within the meaning of Section 5158.1-103 of MCIOA or in any future amendment toMCIOA, and other rights reserved to Declarant elsewhere in this Declaration, for as long as Declarant ownsa Unit or has the right to add Additional Real Estate to the Property, or for such other period as may bespecifically indicated herein or in MCIOA:16.1 Complete lmprovements, To complete allthe Dwellings and other improvements indicatedon the Plat, or otherwise included in Declarant's development plans or authorized by the City the MasterDeclaration, if any, or this Declaration, and to make alterations in the Units owned by Declarant and theCommon Elements to accommodate the exercise of any Special Declarant Rights reserved herein, exemptfrom the requirements of Section 8.16.2Section '17.Add Additional Real Estate. To add Additional Real Estate to the Property as described in16.3 Declarant's Liability for Assessments. To elect to pay Common Expenses andcontributions to replacement reserves as provided in Section 6.8, in lieu of installments of Assessmentsfor Units owned by Declarant.16.4 Relocate Boundaries and Alter Units. To relocate boundaries between Units and tootherwise alter Units owned by it, to the extent permitted by MCIOA,16.5 Leasing, Sales and Rental Facilities. To engage in the sale and leasing of Units, and toconstruct, operate and maintain a sales office, management office, model Dwellings, and otherdevelopment, sales and rental facilities within the Common Elements, and within any Units owned or leasedby Declarant from time to time, located anywhere on the Property or the Additional Real Estate.29
16.6 Signs. To erect and maintain signs and other sales displays offering the Units for sale orlease and/or for other business or construction related purposes, in or on any Unit owned by Declarantand on the Common Elements or on the Additional Real Estate.16.7 Easements. To have and use easements, for itself, its employees, contractors,representatives, agents, prospective purchasers or other invitees through and over the Common Elementsand the Units forthe purpose of exercising its Special Declarant Rights reserved herein.16,8 Control of Association. To control the operation and administration of the Association,including without limitation the power to appoint and remove the members of the Board pursuant toSection SISB.3-103 of MCIOA, until the earliest of: (i) voluntary surrender of control by the Declarant; (ii)the conveyance to Owners other than the Declarant of seventy-five percenl (75o/o) of the total number ofUnits authorized to be included in the Property; or (iii) the date five years (5) following the date of thefirst conveyance of a Unit to an Owner other than the Declarant. Notwithstanding the foregoing, theOwners other than Declarant shall have the right to nominate and elect not less than thirtythree and one-third percent (33 1/3%)of the directors at a meeting of the Owners which shallbe held within sixty (60)days following the conveyance by Declarant of fifty percent (50%) of the total number of Units authorizedto be included in the Property. The turnover by the Declarant of control of the Board shall not affect theDeclarant's right to exercise any other Special Declarant Rights granted to it by this Declaration or by law.16.9 Consent to Certain Amendments. To approve or withhold approval of any amendment tothe Governing Documents or Rules and Regulations.16.10 Other Rights. To have and exercise such other rights as are afforded Declarant under theterms of this Declaration or identified, now or in the future, as Special Declarant Rights in Section S|SB.1-'103 of MCIOA.16.1 1 Assignment of Declarant Rights. To transfer and assign, in whole or in part, the as SpecialDeclarant Rights described in this Section 16to otherdevelopers orto builders, as provided by MCIOA.Subject to any other limitations provided in the Declaration or MCIOA, all Special Declarant Rightsterminateten (10)yearsafterthedateof thefirstconveyance of a Unitto a person otherthan a Declarantunless extended by a vote of the Owners.SECTION 17RIGHTS TO ADD ADDITIONAL REAL ESTATEDeclarant hereby expressly reserves the exclusive right to add the Additional Real Estate to theProperty, following its acquisition of titletothe parcelbeing added, by unilaterally executing and recordinga Supplemental Declaration pursuant to Section SlSB.2-1'1'1 of MCIOA, subject to the following conditions.17.1 Time Limitations. The right of Declarant to add the Additional Real Estate to the commoninterest community shall terminate ten (10) years after the date of recording of this Declaration or uponearlier express written withdrawal of such right by Declarant or a successor Declarant, unless extended bya vote of the Owners pursuant to Section S|SB.2-106(2) of MCIOA. There are no other limitations onDeclarant's rights hereunder, except as may be imposed by law or this Declaration.30
17.2 Sequence to Add. The Additional Real Estate is described in EXhjhj!9 attached hereto.The Additional Real Estate may be added to the Property in parcels consisting of one or more platted orunplatted lots, or portions thereof, and in any sequence.17 .3 No Assurances of Addition. Declarant has no obligation to add the Additional Real Estateto the Property, There are no assurances that any part of the Additional Real Estate will be added to theProperty, the order in which it will be added, the time it will be added, the number of parcels per phasenor the size of the parcels. The Additional Real Estate may be developed by Declarant or its successors ininterest for other purposes, subject only to approval by the appropriate governmental authorities,17.4 Maximum Number of Units. The maximum number of Units that may be created withinthe Additional Real Estate described as such on the date of this Declaration is nineteen (1g). All Unitscreated on the Additional Real Estate shall be restricted exclusively to residential use.17.5 Architectural Style and Compatibility. Any Units, Dwellings and other structures createdupon the Additional Real Estate shall be compatible with the other Units, Dwellings and other structureswhich are part of the Property in terms of architectural style, quality of construction, principal materialsemployed in construction and size; subject {i) to any changes required by governmental authorities orlenders, and (ii) to any interior or exterior changes made by Declarant to meet changes in the market.17 .6 Applicability of Covenants. All covenants and restrictions contained in this Declarationaffecting the use, occupancy and alienation of Units shall apply to all Units created on the Additional RealEstate.The statements made in this Section 17 shall not apply to any Additional Real Estate which is notadded to the Property.SECTION 18PARTY WALLS18.1 General Rules of Law to Apply Each wall built as part of the original construction ofDwellings and located or intended to be located on the boundary line between Units shall constitute a partywall, the Units shall be subject to easements for structural support with respect to such walls pursuant toSection 12.3 and for any encroachments resulting from or attributable to such walls pursuant to Section12.4, and, to the extent not inconsistent with the provisions of this Section, the general rules of lawregarding party walls and liability for property damage due to negligent or willful acts or omissions shallapply thereto.18.2 Repair and Maintenance. The Owners of the Units which share a party wall shall beresponsible for the maintenance, repair and replacement of the party wall in equal proportions; provided,(i) that any maintenance, repair or replacement necessary due to the acts or omissions of a certain Owneror Occupant sharing such party wall shall be paid for by such Owner, and (ii) that the Association maycontract for and supervise the repair of damage caused by an Owner or Occupant and assess the Ownersfor the cost thereof to the extent not covered by insurance, Such cost shall be a personal obligation ofthe Owner and a lien against the Owner's Unit.31
'18.3 Destruction by Fire or Other Casualty. lf a party wall is destroyed or damaged by fire orother casualty, any Owner who has use of the party wall may, with the consent of the Association, restoreit, and the other Owner shall promptly reimburse the Owner who restored the wall for his or her share ofthe cost of restoration thereof; provided, however, that the cost of restoration resulting from destructionor other casualty resulting from the acts or omissions of an Owner shall be the financial responsibility ofsuch Owner, and the Association may assess the responsible Owner for their share of the costs, withoutprejudice to the right of an Owner to recover a larger contribution from the other Owner. lnsuranceclaims shall be made promptly following any casualty.18.4 Weatherproofing. Notwithstanding any other provision of this Section, any Owner who,by his or her negligent or willful act, causes a party wallto be exposed to the elements shall bear thewhole cost of the repairs necessary for protection against such elements.18.5 Right to Contribution Runs With Land. The right of any Owner to contribution from anyother Owner under this Section shall be appurtenant to the Unit and shall pass to such Owner's assignsand successors in title.18.6 Arbitration. ln the event of any dispute arising concerning a party wall, and if the Ownersof the affected Units do not resolve the dispute by a written agreement within thirty days of the eventcausing the dispute, the matter shall be submitted to binding arbitration under the rules of the AmericanArbitration Association (or under such other rules as the parties may unanimously agree), upon the writtendemand of the Association or any Owner whose Dwelling shares the party wall. A single arbitrator shall beused unless multiple arbitrators are agreed to by the parties. The Association shall, upon its request, bemade a party to the arbitration, but cannot be compelled to be a party. Each party agrees that the decisionof the arbitrators shall be final and conclusive of the questions involved. The fees of the arbitrators shallbe shared equally by the parties, but each party shall pay its own attorneys' fees or other costs incurred inthe arbitration.SECTION 19MISCELLANEOUS19.1 Severability. lf any term, covenant, or provision of this instrument or any exhibit attachedhereto is held to be invalid or unenforceable for any reason whatsoever, such determination shall not bedeemed to alter, affect or impair in any manner whatsoever any other portion of this Declaration orexhibits attached hereto.19.2 Construction. Where applicable, the masculine gender of any word used herein shall meanthe feminine or neutral gender, or vice versa, and the singular of any word used herein shall mean theplural, or vice versa. References to MCIOA, or any section thereof, shall be deemed to include any statutesamending or replacing MCIOA, and the comparable sections thereof. Any amendment to MCIOA shallretroactively apply to the Association and the Property, except as expressly prohibited or qualified by theGoverning Documents.19.3 Tender of Claims. ln the event that any incident occurs which could reasonably give riseto a demand by the Association against Declarant for indemnification pursuant to MCIOA, the Associationshall promptly tender the defense of the action to its insurance carrier, and give Declarant (i) written32
notice of such tender; (ii) written notice of the specific nature of the action; and (iii) an opportunity todefend against the action.19.4 Notices. Unless specifically provided otherwise in the Governing Documents or MCIOA,allnotices required to be given by orto the Association, the Board, the Association officers, orthe Ownersor Occupants shall be (i) in writing and shall be effective upon hand delivery, or mailing if properlyaddressed with postage prepaid and deposited in the United States mail, or (ii) by electronic communicationmeans and shall be effective when sent, as and if authorized by the Bylaws and Minnesota Statutes Chapter317A; except that registrations pursuant to Section 2.2 of the Bylaws shall be effective upon receipt by theAssociation.19.5 Conflicts Among Documents. ln the event of any conflict among this Declaration, theBylaws and the Rules and Regulations, this Declaration shallcontrol. The Bylaws shall control as againstthe Rules and Regulations19.6 Duration of Covenants. The covenants, conditions, restrictions, easements, liens andcharges contained in this Declaration shall be perpetual, subject only to termination as provided in thisDeclaration and MCIOA.[Signature page follows]33
lN WITNESSWHEREOF, the undersigned has executed this instrument the day and yearfirst set forth above.Pioneer Ridge LLC,a Minnesota limited liability companyElisabeth A MillsIts:SecretarySTATE OF MTNNESOTA ))ss.couNwoFDAKoTA )The foregoing instrument was acknowledged before me this 22nd day of December 2025by Elisabeth A Mills, the Secretary of Pioneer Ridge LLC, a Minnesota limited liability company, onbehalf of said entity.Notary PublicaThis instrument was drafted by:Pioneer Ridge, LLC221 River Ridge Circle SBurnsville, MN 55337RENEEALLEN{{t'ty35
PIONEER RIDGE TOWNHOMESa Planned CommunityEXHIBIT A TO DECLARATIONLEGAL DESCRIPTION OF PROPERTYLots lSthrough 34, Block'l and Lots'l through 20, Block 2, Pioneer Ridge36
Lot 35, Block 1, Pioneer Ridge;Lot21, Block 2, Pioneer Ridge;Outlot A, Pioneer Ridge; andOutlet B, Pioneer RidgePIONEER RIDGE TOWNHOMESa Planned CommunityEXHIBIT B TO DECLARATIONLEGAL DESCRIPTION OF COMMON ELEMENTS37
PIONEER RIDGE TOWNHOMESa Planned CommunityEXHIBIT C TO DECLARATIONLEGAL DESCRIPTION OF ADDITIONAL REAL ESTATENone38
PIONEER RIDGE TOWNHOMESa Planned CommunityCONSENTOFOWNERTO DECLARATIONPioneer Ridge LLC, a Minnesota limited liability company, owner of all or a portion of the realestate described in the foregoing Declaration, hereby joins in and consents to all of the terms,provisions, covenants, conditions, restrictions and easements contained in the foregoing Declarationand agrees that its interest in the real estate is subject to said Declaration and to all the terms,provisions, covenants, conditions, restrictions and easements contained therein.lN WITNESS WHEREOF, the undersigned has executed this instrument the 22nd day of December 2025.Pioneer Ridge LLC,a Minnesota limited liability company,u{d( 4Its:SecretarySTATE OF MINNESOTACOUNTY OFDAKOTAThe foregoing instrument was acknowledged before me this 22nd day of December 2025, byElisabeth A Mills, the Secretary of Pioneer Ridge LLC, a Minnesota limited liability company, on behalf ofsaid entity.SS)))39Notary Public