DECLARATION OF ESTABLISHMENT OF CONDITIONS, COVENANTS

AND RESTRICTIONS FOR CANOGA COUNTRY HILLS ESTATES

 

 

TABLE OF CONTENTS

 ARTICLE I

Definition of Terms ............................................................................ 3

ARTICLE II

Owners’ Property Rights ...................................................................... 6

ARTICLE III

Owners’ Association ........................................................................... 6

ARTICLE IV

Powers of the Association ..................................................................... 9

ARTICLE V

Management of the Project ....................................................................14

ARTICLE VI

Assessments .....................................................................................15

ARTICLE VII

Architectural Control Committee ............................................................19

ARTICLE VIII

Use Restrictions ................................................................................24

ARTICLE IX

Scope of Enforcement ........................................................................30

ARTICLE X

Insurance .......................................................................................31

ARTICLE XI

Accountings ....................................................................................31

ARTICLE XII

Mortgage Protection ..........................................................................33

ARTICLE XIII

Amendment ....................................................................................34

ARTICLE XIV

Annexation ....................................................................................34

ARTICLE XV

General Provisions ...........................................................................36

 

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THIS DECLARATION OF ESTABLISHMENT OF CONDISTIONS, COVENANTS AND RESTRICTIONS FOR COUNTRYHILLS, is made by M. J. BROCK & SONS, INC., a Delaware corporation (hereinafter referred to as “Declarant”), being the Owner of that certain real property subject to this Declaration, and hereinafter more particularly described.

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WITNESSETH:

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WHEREAS, Declarant is the Owner of the following real property located in the City and County of Los Angeles, State of California (hereinafter referred to as the “Project”, more particularly described as:

Lots 1 to 60, inclusive, of Tract No. 37198 in the City and County of Los Angeles, State of California, as per Map recorded on June 9, 1982, in Book 782, Pages 74 to 80, inclusive, of Maps, in the Office of the County Recorder of said County; and WHEREAS, it is the desire and intention of Declarant to sell and convey residential Lots within the Project to various individuals subject to certain basic protective restrictions, limitations, easements, covenants, reservations, liens and charges between it and the purchasers or users of the Project as hereinafter set forth.

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NOW, THEREFORE, Declarant hereby declares that all of the real property described above is, and shall be held, conveyed, hypothecated or encumbered, leased, rented, used occupied and improved subject to the following protective restrictions, limitations, conditions, covenants, reservations, liens and charges, all of which are declared and agreed to in furtherance of a general plan for the subdivision, improvement and sale of Lots, and which are established and agreed upon for the purpose of enhancing and protecting the value, desirability and attractiveness of the Project and every part thereof. Each and all of the restrictions herein contained shall run with the land and shall be binding upon all parties having or acquiring any right, title or interest in any lot within the Project, or any part thereof. The provisions of this Declaration shall be enforceable by any of the Owners of an interest in the real property above described, against any other Owner of Owners thereof, and shall also be enforceable by the Board of Directors of the homeowners’ association, which shall be created for the purpose of governing this Project.

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ARTICLE I 

DEFINITION OF TERMS

1.1. Whenever used in this Declaration, the following terms shall have the following meanings:

1.1.1. Annexation. Shall mean the addition of real property, and improvements thereto, into the scheme of restrictions created by this Declaration. Upon such annexation, the added real property, and lots therein, shall be governed by, and subject to, each and every provision of this Declaration and any amendments thereto. All annexation of territory shall be accomplished pursuant to procedures set forth in Article XIV hereof.​

1.1.2. Declaration: Shall mean this Declaration of Establishment of Conditions, Covenants and Restrictions, as the same may be amended, changed or modified, from time to time.

1.1.3. Lot: Shall mean and refer to any plot of land shown upon any recorded subdivision maps of the Project.

1.1.4. Owner: Shall mean the record Owner or Owners, if more than one, of a Lot in the Project, including Declarant, for so long as any Lots within the Project remain unsold.

1.1.5. Phase: Shall mean one of the three phases of development. The real property and all improvements thereon in Phases II and III shall be annexed into the Project in the manner hereinafter prescribed in Paragraph 14.1 of Article XIV.

Phase I shall consist of the real property and all improvements thereon described as: Lots 1 to 60, inclusive, of Tract No. 37198 in the City and County of Los Angeles, State of California, as per Map recorded on June 9, 1981, in Book 782, Pages 74 to 80, inclusive, of Maps, in the Office of the County Recorder of said County;

Phase II shall refer to the real property and all improvements located thereon described as Lots 1 to 104, inclusive, of Tract No. 37199 as shown on a Subdivision Map recorded on April 2, 1982, in Book 1004, Page 14 to 21, inclusive, of Maps in the Office of the Los Angeles City Recorder.

Phase III shall refer to the real property and all improvements located thereon described as Lots 1 to 107, inclusive of Tract No. 26509 as 32mm on a Subdivision Map recorded on October 3, 1982, in Book 1011, pages 21 to 26, inclusive, of Maps in the Office of the Los Angeles County Recorder.

1.1.6. Mortgage: Shall mean and include a Deed of Trust as well as a Mortgage in the conventional issue.​

1.1.7. Mortgagee: Shall mean a person or entity to whom a mortgage is made, and shall include the beneficiary of a Deed of Trust.

1.1.8. Mortgagor: Shall mean a person or entity who mortgages his or its property to another, i.e., the maker of a Mortgage, and shall include the Trustor of a Deed of Trust.

1.1.9. Institutional Lender: Shall mean a Mortgagee which is a bank or savings and loan association, any established mortgage company, any entity chartered under Federal or State laws, any corporation or insurance company, or any Federal or State agency.

1.1.10. Member: Shall mean an Owner with a Membership in the Association.

1.1.11. Association: Shall mean Canoga Countryhills Homeowners' Association, a California nonprofit mutual benefit corporation, whose Members consist of all Owners of Lots in the Project. Each Owner shall be and become a Member of the Association contemporaneously with his acquisition of a Lot, without further documentation of any kind. Transfer of a Membership shall be only by conveyance of the Lot.

1.1.12. Board of Directors: Shall refer to the governing body of the Association (hereinafter referred to as the "Board").

1.1.13. Bylaws: The duly adopted Bylaws of the Association as the same may be amended, from time to time.​

1.1.14. The aforesaid definitions shall be applicable to this Declaration and to any supplements or amendments thereto (unless the context shall prohibit), recorded pursuant to the provisions of this Declaration.

 

ARTICLE II

GENERAL PLAN OF DEVELOPMENT

2.1. The Project will consist of three (3) phases. Phase I shall consist of sixty (60) residential homes located on Lots 1-60, inclusive, of Tract No. 37198 hereinbefore more particularly described.

2.2. Phase II shall consist of one hundred and four (104) residential homes located on Lots 1-104, inclusive of Tract No. 37199 hereinbefore more particularly described.

2.3. Phase III shall consist of one hundred and seven (107) residential homes located on Lots 1-107, inclusive, of Tract No. 26509 hereinbefore more particularly described.

 

ARTICLE III HOMEOWNERS' ASSOCIATION

A CALIFORNIA NONPROFIT CORPORATION

3.1. Declarant has, at its cost and expense, formed an incorporated homeowners' association known as the Canoga Countryhills Homeowners' Association, a California nonprofit, mutual benefit corporation (hereinafter referred to as the "Association"), which has the powers, rights and duties hereinafter set forth:​

3.1. There shall be one Membership in the Association for each Lot in the Project, which Membership shall be appurtenant to each Lot.

3.1.2. All of such Memberships shall initially be the property of Declarant or its successors in interest, and shall pass automatically to the respective purchasers of Lots in the Project.

3.1.3. Each Member shall be obligated promptly, fully and faithfully to comply with the provisions of this Declaration, and the Bylaws of the Association, and any Rules and Regulations which may from time to time be promulgated by the Board of Directors.

3.1.4. The Association shall have two (2) classes of voting Membership, as follows:

Class A. Class A Members shall be all Owners with the exception of the Declarant, and shall be entitled to one (1) vote for each Lot owned. When more than one person holds an interest in any Lot, all such persons shall be Members, and the vote for such Lot shall be exercised as they among themselves determine, but in no event shall more than one (1) vote be cast with respect to any Lot.

Class B. The Class B Members shall be the Declarant, and shall be entitled to three (3) votes for each Lot owned in the Project upon which Declarant is then paying the appropriate regular assessments provided for herein below. The Class B Membership shall cease and be converted to Class A Membership upon the happening of any of the following events, whichever occurs first:

(a) The total votes outstanding in the Class A Membership equal the total votes outstanding in the Class B Membership; or

(b) Not later than the fourth anniversary of the recordation of this Declaration.

3.1.5. Any provision in the Articles of Incorporation, Bylaws, or this Declaration (hereinafter the "Governing Instruments") calling for Membership approval of action to be taken by the Association shall expressly require the vote or written assent of the prescribed percentage of each class of Membership during the time that there are two outstanding classes of Members. Any requirement elsewhere in the Governing Instruments wherein the vote of the Declarant shall be excluded in any such determination, shall be applicable only if there has been a conversion of Class B to Class A shares and only for so long as the Declarant holds or directly controls 25% of more of the voting power of the Association and same shall be read as requiring the vote of the prescribed percentage of the Class A Members and the vote of the prescribed percentage of the Class A Members other than the Declarant.

3.1.6. The voting rights attributed to any given Lot in the Project as provided for herein, shall not vest until the assessments provided for hereinbelow have been levied by the Association against such Lot.

3.1.7. The Association Membership held by any Owner of a Lot shall not be transferred, pledged, or alienated in any way, except upon the sale or encumbrance of such Lot. In the event of such sale or encumbrance, the Membership may only be transferred, pledged or alienated to a bona fide purchaser of the Lot, or to the Mortgagee (or third-party purchaser) of such Lot upon a foreclosure sale. Any attempt to make a prohibited transfer is void, and will not be reflected upon the books and records of the Association.

3.1.8. Membership is not intended to apply to those persons or entities who hold an encumbrance or an interest as security for the performance of an obligation to pay money.

3.1.9. The purpose of the Association is to further and promote the common interests and welfare of its Members, and to operate, preserve and maintain the Project.

 

ARTICLE IV

POWERS OF THE ASSOCIATION

4.1. The Association, in its sole and absolute discretion, and as more fully set forth in its Bylaws, shall have the following powers and duties:

4.1.1. The Association shall have the following duties with regard to the slope areas and drainage devices within the Project:

(a) The Association shall cause a yearly inspection by a private civil engineer of all slope areas and drainage devices within the Project. Said engineer shall prepare a report thereon and file same with the Grading Division of the Department of Building and Safety for the City of Los Angeles.

(b) The Association shall inform all Owners of Lots containing slope areas and/or drainage devices of their duty and responsibility for the maintenance of the appearance and integrity of such slope areas and drainage devices.

(c) The Association shall provide all new and subsequent Owners of Lots containing slope areas and/or drainage devices with copies of an informative slope and drainage maintenance program for their respective Lots.

(d) Should an Owner fail to maintain the slope areas or drainage devices within his respective Lot after written request to do so by the Association, the Association shall cause such maintenance to be performed, and the cost thereof to be billed to such Owner as a Special Assessment.

(e) The Association and not the Lot Owner shall have the specific duty and responsibility to maintain the appearance and integrity of all slope areas and drainage devices located on all lots adjacent to Valley Circle Boulevard. Said maintenance shall be provided by a management company or landscape maintenance service, to be retained by the Association, on a bi-weekly basis.​

(f) The Association shall have the further duty to maintain the two (2) water and debris retention (catch) basins located within Lots 30 and 38 of Tract No. 26509.

(g) Amendment of this Paragraph 4.1.1 and all subparagraphs thereof, shall require the prior written consent of the Grading Division of the Department of Building and Safety for the City of Los Angeles.

(h) The Association is hereby granted an easement of ingress and egress over and across all slope areas and drainage devices within the Project for purposes of performing inspection and maintenance thereon as hereinbefore described.

4.1.2. The Association shall have the right and power to levy and collect assessments.

4.1.3. The Association shall maintain a bank account(s) for funds coming under the control of the Association.

4.1.4. The Association shall adopt Rules and Regulations not inconsistent with the provisions of this Declaration.

4.1.5. The Association shall have the right and power to enforce the provisions of this Declaration, the Bylaws, and the Articles of Incorporation; nothing, however, contained in this paragraph shall be construed to prohibit enforcement of same by any Owner.​

4.1.6. The Association has the right, power and duty to contract, provide and pay for (i) services of persons necessary to accomplish the obligations of the Association; and (ii) legal and accounting services.

4.1.7. Notwithstanding any of the foregoing, the Association, acting through its Board, may not enter into any contract binding for a term longer than one (1) year from the effective date thereof without the vote or written consent of a majority of the voting power of the Members of the Association other than the Declarant.

4.1.8. The Association has the right and power to contract for the purchase of tools, equipment, materials, supplies and other personal property and services for the benefit of the Members of the Association and the Project.

4.1.9. The Association has the right and power to delegate its powers to others where such delegation is proper.

4.1.10. The Association has the right and power to prosecute or defend, under the name of the Association, any action affecting or relating to the Project or the personal property therein, or any action in which all of the Owners have an interest in the subject matter of the action.

4.1.11. Subject to the vote or written consent therefore from a majority of the voting power of the Membership, excluding the votes of the Declarant, the Association may borrow money, mortgage, pledge, deed in trust, or hypothecate any or all of its personal property as security for money borrowed or debts incurred.​

4.1.12. The Association may do any and all things that a corporation organized under the laws of the State of California may lawfully do, and generally may do and perform any and all other acts which may be either necessary for, or incidental to, the exercise of any of the foregoing powers, and any other such powers as are granted by the provisions of the laws of the State of California to a corporation.

4.1.13. The Association may acquire by gift, purchase or otherwise, own, hold, enjoy, lease, operate, maintain, convey, sell, transfer, mortgage, or otherwise encumber, dedicate for public use, or otherwise dispose of real and/or personal property in connection with the business of the Association; provided, however, that the Association shall not acquire or sell any real property by purchase or lease without first obtaining the vote or written consent therefor from a majority of the voting power of the Membership, excluding the votes of the Declarant.

4.1.14. The Association shall have the right and power to suspend (a) a Member's voting rights for any period during which any assessment against his Lot remains unpaid and delinquent; and (b) for a period not to exceed thirty (30) days for any single infraction of the Rules and Regulations of the Association, provided that any suspension of such voting rights, except for failure to pay assessments, shall be made only by the Association or a duly appointed committee thereof, after notice and hearing given and held in accordance with the Bylaws of the Association.

4.1.15. The Association may take any and all lawful action which may be advisable, proper, authorized or permitted by the Association under and by virtue of any condition, covenant, restriction, reservation, charge or assessment affecting the Project, or any portion thereof, and to do and perform any and all acts which may be either​ necessary for or incidental to the exercise of any of the foregoing powers, or for the peace, health, comfort, safety or general welfare of its Members.

4.1.16. The Association, through its duly authorized agents or employees, shall have the right after reasonable notice to the Owner thereof to enter onto any Lot in the Project to abate any nuisance or perform maintenance upon the Lot where the Owner thereof has failed or refused to perform the same. The cost of such abatement or maintenance shall be assessed to the Owner of the Lot wherein such abatement or maintenance was performed.

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ARTICLE V 

MANAGEMENT OF THE PROJECT

5.1. The management and complete control of the Association's affairs and the Project itself will be the direct responsibility of the Board of Directors (hereinafter referred to as the 'Board"), the members of which shall consist of Members of the Association who will be elected by the total Membership of the Canoga Countryhills Homeowners' Association.

5.2. The Board shall have all the rights, powers and duties of the Association as they are delineated in Article IV of this Declaration and as are further provided in the Bylaws of the Association.

5.3. The Board may delegate its responsibility for the everyday management of the Project to a manager or management company, if it so chooses.​

5.4. Notwithstanding any of the foregoing, if a manager or management company is chosen to manage the Project, it will be responsive to and subject to the dictates of the Board.

5.5. Declarant will manage and control the Project until such time that the Board has its first meeting.

 

ARTICLE VI 

ASSESSMENTS

6.1. The Declarant, for each Lot owned within the Project, hereby covenants, and each Owner of a Lot by acceptance of a grant deed therefore, whether or not it shall be so expressed therein is deemed to covenant and agree to pay to the Association: (i) regular assessments or charges, and (ii) special assessments, such assessments to be established and collected as so directed by the Board. The regular and special assessments, together with interest, costs, and reasonable attorney's fees, shall also be the personal obligation of the person(s) who was the Owner of such Lot at the time when the assessment fell due. The personal obligation for delinquent assessments shall not pass to an Owner's successors in interest unless expressly assumed by them.

6.2. The regular assessments levied by the Association through the Board shall be used exclusively to promote the health, safety, and welfare of the residents in the Project.

6.3. Both regular and special assessments shall be fixed at a uniform rate for all Lots and shall be collected on a monthly basis or as determined by the Board, but not more frequently than monthly.​

6.4. The Board shall abide by the hereinafter provisions for establishing the maximum regular assessments.

6.4.1. Until January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum regular assessment shall be as provided for in the budget.

6.4.2. From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum regular assessment may be increased effective January 1 of each year by the Board without a vote of the Membership, provided that any such increase shall not be more than ten percent (10%) of the previous year's assessment. Such regular assessment shall continue in effect for the following twelve (12) calendar months, which period shall be deemed to be the assessment period.

6.4.3. From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum regular assessment may be increased by the Board in an amount greater than that provided for in Paragraph 6.4.2. for the next succeeding twelve (12) months and at the end of each such period for each succeeding period of twelve (12) months, provided that any such change shall be approved by the vote or written consent of at least a majority of the voting power of the Members, other than the Declarant. The limitations hereof shall not apply to any change in the maximum and basis or consolidation in which the Association is authorized to participate.

6.4.4. After consideration of current maintenance costs and future needs of the Association, the Board may fix the regular assessments at a lesser amount than provided for above.​

6.5. In any fiscal year, the Board may not, without the vote or written consent of a majority of the voting power of the Association residing in Members other than the Declarant, levy special assessments for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement, including fixtures and personal property related thereto, which in the aggregate exceeds five percent (596) of the budgeted gross expenses of the Association for that fiscal year.

6.6. The above provisions with respect to special assessments do not apply in the case where such special assessment is a remedy utilized by the Board to reimburse the Association for costs incurred in bringing the Member and his Lot into compliance with provisions of this Declaration and/or Bylaws.

6.7. Any action authorized under Paragraphs 6.4.3. and 6.5. shall be taken at a meeting duly called for that purpose, written notice of which shall be sent to all Members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting. If the proposed action is favored by a majority of the votes cast at such meeting, but such vote is less than the requisite percent for passage, Members who were not present in person or by proxy may give their assent in writing, provided the same is obtained by the Board not later than thirty (30) days from the date of such meeting.

6.8. The regular assessments provided for herein shall commence as to all Lots covered by this Declaration on the first day of the month following the conveyance of the first Lot to an individual O The first regular assessment shall be adjusted according to the number of months remaining in the calendar year. The Board shall fix the amount of the regular assessment against each Lot at least thirty (30) days in advance of each assessment period. Written notice of the regular assessments shall be sent to the Owner of each Lot within the Project. The due dates for assessments shall be established by the Board of Directors. The Association shall, upon demand, for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid.

6.9. The obligation of Lot Owners in Phases II and III to pay assessments to the Association and the right of such Lot Owners to exercise voting rights in the Association shall not commence until the first day of the month following the close of the first sale of a Lot by Declarant in that particular phase.

6.10. Any assessment provided for in this Declaration, which is not paid when due, shall be delinquent. With respect to each assessment not paid within fifteen (15) days after its due date the Board may, at its election, require the Owner to pay a "late charge" in a sum to be determined b the Board, but not to exceed $5.00 per each delinquent assessment. If any such assessment is not paid within thirty (30) days after the delinquency date, the assessment, shall bear interest from the date of delinquency at the then legal rate'( and the Association may bring an action at law against the Owner personally obligated to pay same. Each Owner vests in the Association or its assigns, the right and power to bring all actions at law against such Owner or other Owners for the collection of such delinquent assessments. In lieu of bringing an action at law to collect delinquent assessments, the Association may submit the matter to arbitration pursuant to the Rules of the American Arbitration Association. The decision of the arbitrator on such delinquent assessment shall be binding upon the Association and the delinquent Owner and may be enforced in any court of competent jurisdiction. The fee to initiate such arbitration shall be paid by the Association and shall be recoverable as part of the arbitration award, in addition to the late charges and interest on the delinquent assessment as provided above.

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ARTICLE VII 

ARCHITECTURAL RESTRICTIONS - ARCHITECTURAL CONTROL COMMITTEE

7.1. No structure shall be erected, altered, placed or permitted to remain on any Lot within the Project other than one (1) single family dwelling not to exceed two (2) stories in height, and a private garage and other outbuildings incidental to single family residential use of the Lot. No structure shall be moved onto any Lot within the Project from another location and all construction within each Lot shall be new. The foregoing notwithstanding, dwellings within the Lots abutting Valley Circle Boulevard on the west, shall not exceed one (1) story in height.

7.2. No residence shall be erected or permitted on any Lot within the Project which contains less than eleven hundred (1100) square feet of floor area. Such area shall be exclusive of attached garage and open entries, porches, patios or basements. The minimum required floor area shall be deemed to include the total enclosed floor area of the residence, building measurements to be taken from the outer facing of exterior walls.

7.3. Each Owner of a Lot shall, within ninety (90) days after acquiring title thereto, cause the front yard of said Lot to be fully landscaped, subject to reasonable growing times, and shall thereafter cause said landscaping to be maintained in a neat and orderly manner, replacing any plant materials which die or are otherwise destroyed. No weeds, rubbish, debris, objects or materials of any kind, plants or seed infected with noxious insects or plant diseases shall be placed, grown or permitted to accumulate on any portion of a Lot which renders such portion of the Lot unsanitary, unsightly, offensive or detrimental to any Lot in the vicinity thereof, or to the occupants of any such Lot. In the event of the default in performance of this provision, Declarant, the Association, or any Owner shall have the right to enter upon such Lot and remove all such weeds, plants, rubbish, debris, objects or materials and do all the things necessary to place said Lot in a neat and orderly condition including the installation of front lawns and landscaping and any expenses therefor shall become due an payable by e owner of said Lot to Declarant within five (5) days after written demand therefor.

7.4. Each Owner of a Lot shall, within one hundred eighty (180) days after acquiring title thereto, cause the sides and rear of his Lot to be fenced. All such fences are to be constructed at the property lines, with the exception of those Lots abutting Valley Circle Road. The design, height, and color of the proposed fences shall be submitted to, and approved by, the Architectural Control Committee under the procedure hereinafter set forth in this Article VII prior to the construction thereof.

7.5. No building, fence, wall, or other structure shall be commenced, erected or maintained upon the Project, nor shall any exterior addition, change or alteration therein, be made until the plans and specifications showing the nature, kind, shape, height, materials and location of the same shall have been submitted to and approved in writing by the Architectural Control Committee. In the event said Committee or its designated representatives, fails to approve or disapprove such design and location within thirty (30) days after said plans and specifications have been submitted to it, approval will not be required, and this Article will be deemed to have been fully complied with.

7.6. Substantial changes to the exterior color of any dwelling within the Project from the original color created by Declarant will require the prior written approval of the Architectural Control Committee.​

7.7. No fences, hedges, or walls shall be erected or maintained or any Lot other than those of the same location, design and materials as are initially installed by Declarant or as are approved by the Architectural Control Committee.

7.8. (a) No building nor any ancillary building or facility, such as tool sheds, gazebos, cabanas, room additions, swimming pools or jacuzzis (or spas) shall be located on any Lot nearer to the front lot line or nearer to the side street line than the minimum building setback lines as set forth in the Zoning Regulations of the City of Los Angeles for the appropriate zone. In any event, no building shall be located on any Lot nearer than eighteen (18) feet to the front lot line, or nearer than five (5) feet to any side street line, or nearer than five (5) feet to an interior lot line. No dwelling or other building shall be located on any interior Lot nearer than twenty (20) feet to the rear lot line. No such ancillary building or facility shall be located in the front yard of any Lot. No privy (other than temporary ones during erection of a structure) shall be erected or maintained within any Lot. Any lavatory or toilet in existence or used upon a Lot shall be enclosed within a building permitted under this Declaration and shall be properly connected with an underground septic tank or other method of disposal which is constructed and operated so that no offensive odor shall escape therefrom.

(b) For the purposes of this covenant, eaves, steps, and open porches shall not be considered as a part of a building; provided, however, that this shall not be construed to permit any eaves or overhangs to encroach more than three (3) feet into any setback otherwise required by law.

(c) No more than one (1) ancillary building within each Lot may be used as separate living quarters. Any such building may not contain a kitchen, and may only be used by non- paying guests, servants, or members of the Owner's family.​

7.9. No tree house, tool shed or other ancillary building or facility shall be erected or maintained in any Lot if the top of such structure is visible from any adjacent Lots or from any public street.

7.10. Patio covers, gazebos and cabanas shall be constructed of wood or other materials, and shall be of a design, which is consistent with the materials and design of the residential building. Roofs and patio covers made of metal or fiberglass are expressly prohibited.

7.11. The committee for the control of the structural and landscaping architecture and design (Architectural Control Committee) within the Project shall consist of three (3) Members. Declarant may and hereby does appoint all of the original Members of the Architectural Control Committee as follows:

(1) Theodore E. Cox, 6767 Forest Lawn Dr., Los Angeles, California 90068

(2) Ronald A. Gallagher, 6767 Forest Lawn Drive, Los Angeles, California 90068

(3) Bayne A. Sparks, 6767 Forest Lawn Drive, Los Angeles, California 90068

From and after one (1) year following the date of recordation of this Declaration, a

majority of the Owners of Lots within the Project, excluding Declarant, may, by signed instrument recorded in the office of the County Recorder of Los Angeles County, replace one (1) of the three (3) Members of the Architectural Control Committee. From and after the earlier of (i) the recordation of sales by Declarant of two hundred forty-four (244) Lots within the Project, or (ii) three (3) years from the date of recordation of this Declaration, a majority of the then Owners of Lots within the Project may, by a signed instrument recorded in the office of the County Recorder of Los Angeles County, California, replace any, or all, of the Members of the​ Committee. In the event of death or resignation of any Member of said Committee, the remaining Member or Members shall have full authority to approve or disapprove such design and location within thirty (30) days after said plan and specifications have been submitted to it; or, in any event, if no suit to enjoin the erection of such building or the making of such alteration has been commenced within one (1) year of the completion thereof, such approval will not be required, and this covenant shall be deemed to have been fully complied with. No Member of such Committee, nor its designated representative, shall be entitled to any compensation for such services performed pursuant to this covenant.

7.12. All plans and specifications submitted to the Architectural Control Committee pursuant to this Declaration shall be submitted in duplicate and delivered, with the address of the submitting party, to the Committee at the address set forth below. Any approval, disapproval or other action by the Committee pursuant to this Declaration shall be by certificate stating the Committee's action as having been joined in by at least the majority of its Members and shall be signed by such joining Members (with signatures acknowledged for recording). The action so certified shall constitute the action of the Committee, and the Certificate shall promptly be mailed, postage prepaid, to the address specified by the submitting party. One set for the duplicate sets of material submitted to the Committee may be retained by it and the other set shall have the action of the Committee endorsed thereon and shall promptly be mailed, postage paid, to the address specified by the submitting party unless such party shall elect to accept delivery thereon in person or by agent The address of the Committee is 6767 Forest Lawn Drive, Los Angeles, California 90068, or such other place as may from time to time be designated by the Committee by a written instrument recorded in the Office of the County Recorder of Los​ Angeles County; and the last instrument so recorded shall be deemed to be the Committee's proper address.

7.13. Each Member of the Architectural Control Committee, Declarant and any agent or employee of the Committee or Declarant shall at all reasonable hours have access to any building site and structures being built or completed thereon for the purpose of inspection relative to compliance with this Declaration.

 

ARTICLE VIII

USE RESTRICTIONS AND OBLIGATIONS OF OWNERS

8.1. In addition to all other covenants contained herein, the use and enjoyment of the Project and each Lot therein shall be subject to the following restrictions:

8.1.1. No Lot shall be occupied and used except for single-family residential purposes by the Owners, their tenants, and social guests, and no trade or business shall be conducted therein, except that Declarant, its successors or assigns, may use any Lot or Lots in the Project owned by Declarant for a model home site or sites and display and sales offices until the last Lot is sold by Declarant No tent, shack, trailer, garage, outbuilding or structure of a temporary character shall be used at any time as a residence, either temporarily or permanently.

8.1.2. No structure within the Project shall be occupied in the course of original construction until the same is completed and made to comply with the covenants, restrictions and conditions contained in this Declaration. All work of construction on each such structure shall be prosecuted diligently and continuously from the time of commencement of construction until the same shall be fully completed except to the extent prevented by strikes, lockouts, boycotts, the elements, war, inability to obtain materials, Acts of God or similar causes beyond the reasonable control of Declarant.

8.1.3. No part of the Project shall ever be used or caused to be used directly, or indirectly, for any business, commercial, manufacturing, mercantile, storing, vending or other such non-residential purposes, except by Declarant in connection with the sale of Lots in the Project.

8.1.4. No sign or billboard of any kind shall be displayed by any Owner on any portion of the Project or Lot, except one sign for each Lot of reasonable size, advertising that the particular Lot is for sale or rent, provided that Declarant, its successors and assigns may erect and maintain such signs, billboards, and other advertising devices and structures as Declarant, or Declarant's successors and assigns, may, in its sole discretion, deem necessary or proper in connection with the development and sales of Lots within the Project, provided such right shall expire upon the sale of the last Lot within the Project or seven (7) years from the date hereof, whichever shall first occur.

8.1.5. No noxious or offensive activity shall be carried on within any Lot or any part of the Project, nor shall anything be done therein which may be, or may become, an annoyance or nuisance to the neighborhood, or which shall in any way interfere with the quiet enjoyment of each of the Owners of his respective dwelling, or which shall in any way increase the rate of insurance on adjoining Lots.

8.1.6. No oil drilling, ail development operations, oil refining, quarrying, mining or drilling operations of any kind shall be permitted within the Project, nor shall oil wells, tanks, tunnels or mineral excavations or shafts be permitted upon the surface of or within five hundred (500) feet below the surface of the Project. No derrick or other structure designed for use in boring for water, oil or natural gas shall be erected, maintained or permitted within the Project.

8.1.7. All rubbish, trash and garbage shall be kept in tightly closed containers and shall be regularly removed from each Lot, and shall not be allowed to accumulate thereon. All clotheslines refuse containers, woodpiles, metal, bulk materials, storage areas, machinery and equipment shall be prohibited unless obscured from view of the adjoining Lots and all streets within the Project. This restriction shall not apply to Declarant in connection with the original construction and sale of Lots within the Project.

8.1.8. No automobile or other motor vehicle repair shall be permitted within the Project except entirely within a garage within a Lot. Under no circumstances shall such vehicle repair be permitted on any street or driveway within the Project, except in the event of an emergency. No trailer, camper, boat or other recreational vehicle, or inoperative automobile shall be permitted upon the Project unless placed and maintained entirely within a garage. The foregoing restriction shall not be deemed to prevent washing and polishing of such motor vehicle, boat, trailer, camper or motor-driven cycle, together with those activities normally incident and necessary to such washing and polishing.

8.1.9. No animals, livestock or poultry of any kind, shall be raised, bred or kept on any Lot, except that dogs, cats, or other household pets, and no more than two of each, may be kept on the Lots, provided they are not kept, bred or maintained for any commercial purpose, or in unreasonable numbers. Notwithstanding the foregoing, no animals or fowl may be kept within the Project which result in any annoyance or are obnoxious to residents of the Project. Upon the written request of any Owner, the Architectural Control Committee, as specified in Article VII, Section 7.10, shall conclusively determine, at its sole and absolute discretion, whether, for the purposes of this Paragraph, a particular animal or bird is a generally recognized household pet, or a nuisance, or whether the number of animals or birds within any Lot is reasonable.

8.1.10. No portion of a dwelling unit constructed as a garage shall be converted to any other use, and all such garages shall remain available for the storage of motor vehicles.

8.1.11. No radio or television receiving or transmitting antennae or external apparatus shall be installed on any Lot. Normal radio and television installations wholly within a building are excepted. In addition, all rooftop appliances and installations thereof, excluding the installation of solar panels, are expressly prohibited unless installed so as to be invisible from the adjoining Lots and public streets within the Project.

8.1.12. Easements for installation and maintenance of utilities, sewer pipelines and facilities and drainage facilities over each of the Lots, and all pipelines and other facilities located and to be located in said easements, are reserved as shown on the recorded Maps of the Project. Within such easements, no structure, planting or other materials shall be placed or permitted to remain which may damage or interfere with the installation and maintenance of utilities or which may change the direction of the flow of drainage channels, or which may obstruct or retard the flow of water through drainage channels in the easements. The easement area of each Lot and all improvements therein shall be maintained continuously by the Owner of the Lot, except for those improvements for which a public authority or e utility is responsible. In addition, all sewer pipelines and other sewer facilities located and to be located within public roads, streets and highways abutting each of said Lots are reserved.​

8.1.13. Each Owner of a Lot has the responsibility and duty to maintain the appearance and integrity of all slope areas and drainage devices located within his Lot.

8.1.14. Each grantee of a Lot within the Project covenants for himself, his heirs, successors and assigns, that he will permit free access by Owners of adjacent or adjoining Lots and by the Association, its agents and employees, to all slope areas or drainage ways located on his Lot, which affect said adjacent or adjoining Lots, which access is essential for the maintenance or permanent stabilization of said slopes, or maintenance of the drainage facilities for Lots other than the Lot on which the slope or drainage way is located.

8.1.15. Each grantee of a Lot within the Project covenants for himself, his heirs, successors and assigns, that he will not in any way interfere with the established drainage patterns or create erosion or sliding problems over his Lot from adjoining or other Lots within the Project, and that he will make adequate provisions for proper drainage in the event it is necessary to change the established drainage over his Lot For the purposes hereof, "established" drainage is defined as the drainage which occurred at the time the overall grading of the Project, including the landscaping of each Lot, was completed by Declarant,

8.1.16. Each grantee of a Lot within the Project shall maintain the slopes within his Lot at the slope and pitch fixed by the finished grading thereof, including watering and planting of the slopes. Within slope control areas no structure, planting, or other material shall be placed or permitted to remain or other activities undertaken which may damage or interfere with established slope ratios, create erosion or sliding problems, or which may change the direction of flow of drainage channels or obstruct or retard the flow of water through drainage channels. The slope control areas of each Lot and all improvements thereto shall be maintained continuously by the Owner of the Lot, except

for those improvements for which a public authority or utility company is responsible. Declarant shall, for a period of one (1) year following sale and deed of any particular Lot have the right but not the obligation to enter upon the said Lot and alter or maintain the slope control areas. An easement of reasonable access for said purpose is reserved to Declarant, and the purchaser, by the acceptance of a deed from Declarant, shall take title subject to such easement for said period of one (1) year.

8.2. Conveyance of a substantial number of the Lots is essential to the establishment and welfare of said Project as a residential community. In order that all work necessary to complete the Project be performed as rapidly as possible, nothing in this Declaration shall be understood or construed to:

8.2.1. Prevent Declarant, its contractor or subcontractors, from doing work on said Project or any part thereof whenever it determines such work to be reasonably necessary or advisable in connection with the completion of said Project; or

8.2.2. Prevent Declarant, or its representatives from erecting, constructing and maintaining on any part or parts of said Project owned or controlled by Declarant, its contractors, or subcontractors, such temporary structures as may be reasonably necessary for the conduct of its business of completing said work and establishing said Project as a residential community and disposing of the same by sale, lease, or otherwise, provided that the right of Declarant to erect and maintain such structures shall terminate upon the sale of the last Lot within the Project or seven (7) years from the date hereof, whichever shall first occur.

8.3. All structures within the Project shall at all times be maintained by their respective owners in a clean, first class and properly painted condition.

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ARTICLE IX

SCOPE OF ENFORCEMENT

9.1. The limitations, restrictions, conditions and covenants set forth in this Declaration constitute a general scheme for (i) the maintenance, protection and enhancement of the value of the Lots within the Project; and (ii) the benefit of all Owners. Said limitations, restrictions, conditions and covenants are and shall be covenants running with the land or equitable servitudes, as the case may be.

9.2. Each remedy provided for in this Declaration shall be cumulative and not exclusive. The Association or any Owner shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants, reservations, and charges now or hereafter imposed by the provisions of this Declaration or any amendment thereto.

9.3. The result of or condition caused by any violation of any of the provisions of this Declaration is and shall be a nuisance, and every remedy in law or equity now or hereafter available against a public or private nuisance may be exercised by any person affected thereby.

9.4. Any of the foregoing to the contrary notwithstanding, no action to enforce this Declaration shall be instituted unless and until a written notice of such breach setting forth the facts of such breach has been delivered by certified mail to the Owner of such Lot.​

9.5. In the event the Association or any Owner(s), should commence litigation to enforce any of the provisions of this Declaration, that party, if he should prevail, shall be entitled to have judgment against and recover from any defendant in such litigation such attorneys' fees (other than nominal) and costs as the court may adjudge reasonable and proper.

 

ARTICLE X 

INSURANCE

10.1. The Board of Directors shall also procure and maintain worker's compensation insurance for all employees of the Association and may procure and maintain fidelity insurance or bonds on the directors and officers of the Association and such other insurance as the Board may deem necessary or advisable.

10.2. Each Owner shall carry such insurance as he or his lender shall deem necessary for his individual Lot and residence contained thereon.

10.3. The Board shall review the insurance, if any, carried by the Association at least annually.

 

ARTICLE XI 

ACCOUNTINGS

11.1. The Association shall maintain books of account of all its receipts and expenditures. Each Owner shall be entitled at reasonable time(s) to inspect the books of the Association, and to have such books examined at said Owner's expense by an attorney or an accountant representing such Owner, and may make excerpts or copies of such books or portions thereof, and each such Owner, at his own expense, shall have the right to have such books independently audited by an accountant.

11.2. The Board shall cause a pro forma operating statement (budget) to be prepared for each fiscal year which shall be distributed not less than sixty (60) days before the beginning of the fiscal year.

11.3. The Board shall also cause to be prepared a balance sheet, as of the accounting date, which is the last day of the month closest in time to six (6) months from the date of the closing of the first sale of a Lot in the Project, and an operating statement for the period from the date of the first closing to said accounting date, which shall be distributed within sixty (60) days after said accounting date. The operating statement shall include a schedule of assessments received in receivable, identified by the number of the Lot and the name of the record Owner assessed.

11.4. The Board shall cause to be prepared an annual report consisting of the following which shall be distributed within 120 days after the close of the fiscal year:

11.4.1. A balance sheet as of the end of the fiscal year.

11.4.2. An operating (income) statement for the fiscal year.

11.4.3. A statement of changes in financial position for the fiscal year.

11.4.4. A description of any transaction or series of transactions between the Association and an Officer or Director involving more than fifty thousand dollars​ ($50,000.00) wherein such Officer or Director has a direct or indirect material financial interest. The description of the transaction shall include such person's relationship to the Association, the nature of the person's interest in the transaction, and, where practicable, the amount of such person's interest.

11.5. Ordinarily the annual report referred to in Section 11.4 above shall be prepared by an independent accountant for any fiscal year in which the gross income to the Association exceeds $75,000.