Art. 3

Declaration Article 3

Exhibit III

Declaration of Protective Covenants, Restrictions, and Easements

Article 3

Property Rights

3.1 Owner's Easement of Enjoyment. Every Owner shall have a non-exclusive, common right and easement of ingress and egress and of enjoyment in, to and over, and use of, the Common Properties which easement right shall be appurtenant to and shall pass with but shall not be separated from title to every Residential Unit within The Village, subject to the the following conditions:

A. The right of the Association to reasonably limit the number of guests, invitees or licensees using the Common Properties, except as provided by law or herein to the contrary.

B. Uniform rules and regulations established by the Association from time to time pertaining to the use of the Common Properties, Residential Units, and the Lots including, but not limited to, all parking restrictions established by the Association from time to time within the Common Properties.

C. The right of the Association, in accordance with its Articles of Incorporation, Bylaws and this Declaration, with the vote or written assent of two-thirds (2/3rds) of the votes of Members in the Association, to borrow money for the purpose of improving the Common Properties and facilities and in connection therewith, and to mortgage, pledge or hypothecate any or all of its real or personal property as security for money borrowed or debts incurred, provided that the rights of such mortgagee shall be subordinate to the use rights of the Owners hereunder.

D. The right of the Association to suspend the right to use the Common Properties (except means of ingress and egress) and Limited Common Properties of an Owner for any period during which any Assessment against such Owner's Residential Unit remains unpaid and delinquent; and for a period not to exceed thirty (30) days for any single infraction of this Declaration or the rules and regulations of the Association, provided that any suspension of such voting rights or right to use the Common Properties shall be made only by the Board as provided in the Bylaws of the Association.

E. The right of the Association to dedicate, release, alienate, transfer or encumber all or any part of the Common Properties to or in favor of any public agency, authority or utility at any time and from time to time for such purposes and subject to such conditions as may be agreed to by the Members. So long as Declarant owns any portion of the Property, such dedication, release, alienation or transfer shall be effective without the approval, vote or written assent of the Members in the Association. At such time as Declarant owns no portion of the Property (or any part of future added real estate subjected to this Declaration so the term "Property" as used herein includes such added real estate), no such dedication, release, alienation or transfer shall be effective unless approved by the vote or written assent of two-thirds (2/3rds) of the votes of Members in the Association.

F. The right of the Declarant (and its agents, customers, representatives, servants, employees, licensees and invitees) to the non-exclusive use of the Common Properties, the facilities thereof, and an easement on, over, under and through the Common Property or any portion thereof without charge, for the purpose of construction, reconstruction, repair and maintenance of the Improvements including but not limited to, utility lines and for sales, display, access, ingress, egress, exhibit and other purposes.

G. The right of the Association (by action of the Board) to reconstruct, replace or refinish any Improvement or portion thereof upon the Common Properties, in accordance with the original design, finish or standard or construction of such Improvement, or of the general Improvements within the Common Properties, as the case may be.

H. The right of the Association to replace destroyed trees or other vegetation and plant trees, shrubs and ground cover upon any portion of the Common Properties or Lots and to maintain same and any systems serving same including, but not limited to, irrigation and sprinkler systems.

I. The right of the Declarant to grant such other easements and rights over and upon the Common Properties as Declarant, it its sole discretion, deems appropriate, including without limitation, rights of the public to access by, through, across and upon the Common Properties (which easements and rights shall be similarly granted by the Association).

J. The rights set forth in Article 16 hereof.

K. The rights set forth in Article 17 hereof.

L. The right of Declarant and the Association to designate a central exclusive mail facility for the purpose of receiving and distributing any and all mail.

M. Such other matters affecting title to the property within The Village and rights of governmental authorities.

N. As irrevocable power of attorney, coupled with an interest, of all Owners in favor of Declarant, for as long as Declarant owns any property, Residential Unit or Lot within The Village, to exercise any of the foregoing or other rights or discharge any of the foregoing or other obligations which may be set forth herein for the benefit of Declarant or as an obligation of any Owner. This power of attorney shall be self-operative and shall not require any additional instrument to effect same. An Owner, by acceptance of a deed, thereby acknowledges and confirms (and, to the extent required, grants) the power of attorney set forth herein.

O. Anything to the contrary herein notwithstanding, no action authorized in this Section 3.1 shall be taken without prior written consent of the Declarant as long as the Declarant owns any property, Lot, or Residential Unit within The Village.

3.2 Use by Others. All guests and invitees of Owners shall also be entitled to use the Common Properties, subject to applicable rules, regulations and limitations on such rights.

3.3 Parking Restrictions. Declarant and Association shall have the right at any time and from time to time to designate areas within the Common Properties to be available for the parking of vehicles.

A. All parking spaces shall be limited to designated portions of the Common Properties, and Limited Common Properties, and the maintenance and repair of these parking spaces shall be effected by the Association in the manner set forth hereinafter.

B. Each Owner of a Residential Unit shall have the right to use parking spaces within the Common Properties on a first-come-first-serve basis.

C. Temporary, guest parking or short-term parking for Owners, their guests and invitees, shall be permitted only within spaces and areas designated for such purposes by Declarant or Association. No vehicle shall be parked at any time within a Lot. Association, through its Board, is hereby empowered to establish parking regulations and may make provisions for involuntary removal of violating vehicles. Notwithstanding the foregoing, Association shall not have the right to suspend or otherwise interfere with Declarant's right to use such parking spaces.

3.4 Walkways. Declarant, and after conveyance of the Common Properties (including Limited Common Properties) to the Association, the Association, shall have the right to designate and construct walkways over the Common Properties.

A. All walkways located on the Common Properties shall be restricted to pedestrian use as a walking path for the limited purposes of ingress, egress, light exercising and recreational strolling.

B. The following restrictions apply to the walkways;

(1) No vehicles of any kind shall be permitted on walkways except for strollers for small children, wheelchairs and other manual or electrically powered apparatuses for the persons disabled by physical handicaps or suffering from other disabling infirmities;

(2) No chairs, lounges, mats or other articles for sitting, lying, reclining, or other non-walking activities shall be permitted on walkways;

(3) No person shall loiter or otherwise use any portion of the walkways for any extended period of time, it being the intent of these restrictions to limit gatherings in one location and to promote the use of walkways as a peaceful, designated path for the purpose of quietly meandering through The Village; and

(4) No commercial activities of any kink shall be permitted on the walkways.

3.5 No Waiver of Use. No Owner may release his Lot and/or Residential Unit from assessments and liens hereunder by waver of the use and enjoyment of the Common Properties.

3.6 Conveyance of the Common Properties. After all Lots and Residential Units have been conveyed by Declarant to the CLT or Qualified Owners, or sooner at the option of the Declarant, the Declarant shall convey all of the Common Properties to the Association. Such conveyance by Declarant to the Association shall be free and clear of all liens and encumbrances, subject only to:

A. All taxes and assessments for the year of conveyance and subsequent years;

B. Restriction, conditions, easements, agreements, limitations, and reservation of record.

C. Perpetual non-exclusive easements from and to any portion of the property within The Village owned by the Declarant or its assignees at the time of the conveyance, which easements shall be for the use, benefit and enjoyment of Declarant, the Owners, its or their guests, invitees, licensees, successors and assigns;

D. The Development Agreement and Moderate Income Housing Regulations; and

E. This Declaration, as the same may be amended from time to time.

3.7 Declarant's Right to Encumber. Until the Declarant conveys the Common Properties to the CLT, Declarant shall have the right to mortgage the Common Properties for the purpose of financing the acquisition, development and construction thereof, or for any other purpose, provided that (a) the lender recognizes the rights of the Owners hereunder, (b) the Common Properties shall be free of mortgages at the time of conveyance to the Association, and (c) the CLT, Association or any of the Members (other than Declarant, if it so chooses) shall not be personally liable for payment of the debt secured by such mortgage (s).

3.8 Common Properties for Benefit of Owners. The Declarant and the Association shall hold title to (and such rights in) the Common Properties for the benefit of those persons entitled to use same under the provisions of this Declaration (which shall be applicable from and after the date this Declaration is recorded whether or not the Common Properties are then conveyed to the Association).

3.9 Taxation of Common Properties. It is the intent of this Declaration that the Tax Assessor of the County shall include all ad valorem taxes for the Common Properties within the tax bill for the individual Residential Units. In the event the Common Properties are taxed for the Common Properties, the Association shall pay such taxes and assess the Residential Units and on a prorata basis based upon the current ad valorem tax assessments as determined by the county tax assessor as part of the Common Expenses.

3.10 Construction Activities. Declarant, its agents, contractors, subcontractors, licensees and/or other designees may, from time to time, be engaged in construction, excavation, and other activities within or in proximity to The Village. By acceptance of a deed or other conveyance or mortgage, leasehold, license or other interest, each such Owner, lender and user and their respective successors and assigns automatically acknowledge, stipulate and agree:

A. None of the aforesaid activities shall be deemed a nuisance or offensive activity;

B. Not to enter upon or allow other persons under their direction or control to enter upon any portion of The Village where such activity is being conducted (even if not being conducted actively at the time of entry, such as at night or otherwise during non-working hours); and

C. Declarant, its agents, contractors, subcontractors, licensees and designees, shall not be liable for any direct or consequential losses, damages, injuries or deaths arising from or relating to the aforesaid activities.

3.11 Declarant's Reserved Rights. All of the foregoing property rights are subject to the rights reserved by the Declarant in this Declaration including those rights and exemptions in Articles 11 and 12 hereof.

3.12 Prohibition of Subdivision of Residential Units. Unless preapproved in recordable form by Declarant, no Residential Unit shall be subdivided or broken into smaller parts than as constructed by Declarant and described in the surveyor's certificate attached to the deed of conveyance from the Declarant to the transferee-Owner of such Residential Unit, nor shall any Residential Unit or portion thereof be added to or incorporated in any other Residential Unit.