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HomeMy WebLinkAboutPUD 94-03A; Poinsettia Shores PA A-1; Planned Unit Development - Non-Residential (PUD) (6)Recording Requested By and When Recorded Return To: HECHT, SOLBERG, ROBINSON & GOLDBERG LLP Mr. John Hecht 600 West Broadway, Eighth Floor San Diego, California 92101 DECLARATION OF RESTRICTIONS FOR SANTANDER AND SAN SEBASTIAN AT SAN PACIFICO PLANNED DEVELOPMENT San Pacifico Area A 7/8/97 \ I TABLE OF CONTENTS PAGE RECITALS 1 ARTICLE I DEFINITIONS 2 Section 1.1 Annexable Property 2 Section 1.2 Articles 2 Section 1.3 Association 2 Section 1.4 Board 2 Section 1.5 Bylaws 2 Section 1.6 City 2 Section 1.7 Common Area 2 Section 1.8 Common Maintenance Area 3 Section 1.9 Declarant 3 Section 1.10 Declaration 3 Section 1.11 Final Maps 3 Section 1.12 Lot 3 Section 1.13 Master Association 3 Section 1.14 Master Declaration 3 Section 1.15 Member 3 Section 1.16 Mortgage 3 Section 1.17 Mortgagee 3 Section 1.18 Owner 3 Section 1.19 Phase 3 Section 1.20 Project -. 4 Section 1.21 Retail Purchaser 4 Section 1.22 Site Development Plan 4 ARTICLE II PROPERTY RIGHTS IN COMMON AREA 4 Section 2.1 Owners' Easements of Use 4 Section 2.2 City Easement 5 Section 2.3 Delegation of Use 5 Section 2.4 Conveyance of Common Area 5 ARTICLE III MEMBERSHIP AND VOTING RIGHTS IN ASSOCIATION 6 Section 3.1 Membership 6 Section 3.2 Voting Rights 6 ARTICLE IV COVENANT FOR MAINTENANCE ASSESSMENTS TO ASSOCIATION .. 6 Section 4.1 Creation of Lien and Personal Obligation for Assessments 6 Section 4.2 Purpose of Assessments 7 Section 4.3 Limitation on Regular and Special Assessments 7 Section 4.4 Individual Special Assessments 8 Section 4.5 Uniform Rate of Assessment 8 Section 4.6 Date of Commencement of Regular Assessments; Due Dates 8 Section 4.7 Model Homes . 8 San Pacifico Area A 7/8/97 PAGE Section 4.8 Uncompleted Facilities 9 Section 4.9 Effect of Non-Payment of Assessments; Remedies of Association . . 9 Section 4.10 Subordination of the Lien to First Mortgages 10 Section 4.11 Estoppel Certificate 10 Section 4.12 Personal Liability of Owner 10 Section 4.1 3 Exempt Property 10 Section 4.14 Assessments Levied By City 11 ARTICLE V GOVERNMENTAL REGULATIONS 11 Section 5.1 Project Is Subject to Regulations 11 Section 5.2 City Not Responsible to Enforce 11 ARTICLE VI ARCHITECTURAL CONTROL 11 Section 6.1 Architectural Committee 11 Section 6.2 Committee Approval 12 Section 6.3 Other Approvals 12 Section 6.4 Approved Conditions 12 Section 6.5 Notification 12 Section 6.6 Waiver 13 Section 6.7 No Liability 13 Section 6.8 Design Criteria 13 Section 6.9 Variances 13 Section 6.10 Committee Guidelines 14 Section 6.11 Declarant Exemption 14 ARTICLE VII USE RESTRICTIONS 14 Section 7.1 In General 14 Section 7.2 Use Restrictions in the Master Declaration 14 Section 7.3 Single Family Residence 14 Section 7.4 Business or Commercial Activity 14 Section 7.5 Nuisances 14 Section 7.6 Signs 14 Section 7.7 Parking and Vehicular Restrictions 14 Section 7.8 Animal Restrictions 14 Section 7.9 Trash 14 Section 7.10 Temporary Buildings 15 Section 7.11 Outside Installations 15 Section 7.12 Antennae 15 Section 7.13 Drilling 15 Section 7.14 Drainage 15 Section 7.15 Water Supply Systems 15 Section 7.16 Inside Installations 15 Section 7.17 Views 15 Section 7.18 Rights of Disabled 15 Section 7.19 No Hazardous Activities 15 Section 7.20 Unsightly Articles ...... 15 \ San Pacifico Area A 7/8/97 PAGE Section 7.21 No Temporary Structures 15 Section 7.22 Grading .• 15 Section 7.23 Owners Responsible for Damage 16 Section 7.24 Construction and Sales Activities 16 Section 7.25 Owners May Not Change Common Area 16 Section 7.26 Burning 16 Section 7.27 No Private Maintenance or Development of Common Area or Common Maintenance Area 16 Section 7.28 Guest Parking Only on Street 16 Section 7.29 Certain Provisions of City Resolutions 16 Section 7.30 Post-Tensioned Slabs 17 ARTICLE VIII INSURANCE AND CONDEMNATION 17 Section 8.1 Insurance 17 Section 8.2 Condemnation 18 ARTICLE IX MAINTENANCE RESPONSIBILITIES 18 Section 9.1 Parties Responsible for Maintenance of Common Area 18 Section 9.2 Association Maintenance 19 Section 9.3 Owner Maintenance 19 Section 9.4 Association's Right to Repair Neglected Lots 20 Section 9.5 Maintenance by City 20 ARTICLE X ANNEXATION 20 Section 10.1 By Association ,--.-• 20 Section 10.2 By Declarant 20 ARTICLE XI RIGHTS OF LENDERS 21 Section 11.1 Payments of Taxes or Premiums by First Mortgagees 21 Section 11.2 Priority of Lien of Mortgage 21 Section 11.3 Curing Defaults 21 Section 11.4 Approval of First Mortgagees 21 Section 11.5 Restoration of Common Area 22 Section 11.6 Professional Management 22 Section 11.7 Notice to Mortgagees 22 Section 11.8 Documents to be Available 23 Section 11.9 Conflicts 23 ARTICLE XII GENERAL PROVISIONS 23 Section 12.1 Enforcement 23 Section 12.2 Severability 24 Section 12.3 Amendments 24 Section 12.4 Extension of Declaration 24 Section 12.5 Encroachment Easements 25 Section 12.6 Special Responsibilities of Association 26 San Pacifico Area A 7/8/97 Section 12.7 Litigation 26 Section 12.8 Documents to be Provided to Prospective Purchaser . . . .• 26 Section 12.9 Limitation of Restrictions on Declarant 27 Section 1 2.10 Easement to Inspect and Test 27 SUBORDINATION AGREEMENT(S) San Pacifico Area A ' •''.'. 7/8/97 , . -iv- DECLARATION OF RESTRICTIONS THIS DECLARATION OF RESTRICTIONS ("Declaration") is made as of 19 , by POINSETTIA HOMEBUILDING PARTNERS, L.P., a California Limited Partnership (hereinafter referred to as "Declarant"), with reference to the following RECITALS: A. Declarant is the owner of the real property located in the City of Carlsbad, County of San Diego, California, described as: Lots 21 through 27, 29 through 36 and 40 of CARLSBAD TRACT 94-04 POINSETTIA SHORES AREA A-1, according to Map thereof No. , filed with the County Recorder of San Diego County, California on , 1997; and Lots 6 through 1 2, 30 through 34 and 52 of CARLSBAD TRACT 94-05 POINSETTIA SHORES AREA A-2, according to Map thereof No. , filed with the County Recorder of San Diego County, California on , 1997 which real property is referred to herein as "Phase 1". B. Phase 1 is the first Phase of real property owned by Declarant and described on Exhibit "A" attached hereto. Declarant may from time to time annex to this Declaration and to the jurisdiction of SAN PACIFICO AREA A ASSOCIATION, a California nonprofit mutual benefit corporation (the "Association") some or all of the additional real property described on Exhibit "A" (the "Annexable Property") as additional Phases. This Declaration initially encumbers only Phase 1. Reference in this Declaration to the "Project" refers to Phase 1 described above and such additional Phases as become annexed to this Declaration. C. Declarant plans to develop the Project as a Common Interest Development described in §1351(k) of the California CIVIL CODE as a "Planned Development" consisting of single-family detached homes, together with common areas as described in this Declaration. There is no guarantee that all Phases will be developed or annexed to this Declaration or developed or annexed in any particular order. Some Phases may be developed concurrently. Declarant reserves the right during the development of the Project to change the phasing and the design, size, type and price of the homes to be built in the Project and the construction and phasing of the development of the Project. D. The owners of residential lots will be members of the Association. The Associ- ation shall also own and maintain certain real property ("Common Area") and shall maintain the Common Maintenance Area, if any. It is not currently expected there will be any Common Maintenance Area. If there were Common Maintenance Area it would include portions of Lots or areas outside the Project over which maintenance easements are.conveyed to the - San Pacifico Area A 7/8/97 -1- • .. Association or which the Association is otherwise obligated to maintain. It is currently expected that the Common Area will consist of private street and open space lots. No recreational facilities are currently planned for the Common Area. E. In addition to being subject to this Declaration, it is intended that the Project will be subject to a Master Declaration of Covenants, Conditions, Restrictions And Reservation of Easements For San Pacifico ("Master Declaration") and in addition to being members of the Association, Owners will be members of the San Pacifico Master Association ("Master Association"). F. Before selling any of the residential lots, Declarant wishes to impose the following plan of covenants and restrictions on Phase 1 and on each additional Phase which becomes annexed to this Declaration. NOW, THEREFORE, Declarant hereby certifies and declares and does hereby establish the following general plan for the protection and benefit of Phase 1 and each additional Phase which is annexed hereto and has fixed and does hereby fix the following protective covenants and restrictions upon each and every ownership interest in Phase 1 and each additional Phase which is annexed hereto under which covenants and restrictions each ownership interest shall be held, used, occupied, leased, sold, encumbered, conveyed and/or transferred. Each and all of the covenants and restrictions are for the purpose of protecting the value and desirability of and shall inure to the benefit of and shall run with and be binding upon and pass with each Lot and Common Area within the Project and each and every ownership interest therein and shall inure to the benefit of, apply to and bind the respective successors in title or interest of Declarant. The covenants and restrictions herein set forth are enforceable equitable servitudes as described in California CIVIL CODE Section 1 354. ARTICLE I DEFINITIONS Section 1.1. "Annexable Property" — The real property described on Exhibit "A" attached hereto (Exhibit "A" may also include Phase 1). Section 1.2. "Articles" —The Articles of Incorporation of the Association. Section 1.3. "Association" —SAN PACIFICO AREA A ASSOCIATION, a California Nonprofit Mutual Benefit Corporation. Section 1.4. "Board" — The Board of Directors of the Association. Section 1.5. "Bylaws" — The Bylaws of the Association. Section 1.6. "City" — The City of Carlsbad, California, a municipal corporation. Section 1.7. "Common Area" — All real property owned in fee by the Association. San Pacifico Area A 7/8/97 -2- Section 1.8. "Common Maintenance Area" — Those portions of Lots or areas outside the Project over which maintenance easements are conveyed to the Association or which the Association is otherwise obligated to maintain. It is not currently expected that there will be any Common Maintenance Area. Section 1.9. "Declarant" - POINSETTIA HOMEBUILDING PARTNERS, L.P., a California Limited Partnership, its successors and assigns, if such successor or assign should acquire more than five (5) Lots for the purpose of development, and the rights of "Declarant" are assigned to them. The rights of Declarant shall be deemed assigned to any lender of Declarant whose loan is secured by a Mortgage which encumbers any portion of the Project. Section 1.10. "Declaration" — This Declaration of Restrictions. Section 1.11. "Final Maps" — The final subdivision maps of CARLSBAD TRACT 94-04 POINSETTIA SHORES AREA A-1, CARLSBAD TRACT 94-05 POINSETTIA SHORES AREA A-2, CARLSBAD TRACT 94-06 POINSETTIA SHORES AREA A-3 and CARLSBAD TRACT 94-07 POINSETTIA SHORES AREA A-4. Section 1.12. "Lot" — Any plot of land shown as a separate lot or parcel upon any recorded Final Map or Parcel Map of any portion of the Project, with the exception of the Common Area. In the event the boundaries of any Lot are adjusted in compliance with the California Subdivision Map Act, then "Lot" shall refer to the Lot as so adjusted. Section 1.13. "Master Association" - The SAN PACIFICO MASTER ASSOCIATION, a California Nonprofit Mutual Benefit Corporation. Section 1.14. "Master Declaration" — The Master Declaration of Covenants, Conditions, Restrictions And Reservation of Easements For San Pacifico filed for record on , 1 997, Official Records of San Diego County, California, as the same may be amended from time to time. Section 1.15. "Member" — An Owner who is entitled to membership in the Associ- ation as provided in the Declaration. Section 1.16. "Mortgage" — A Deed of Trust as well as a mortgage encumbering a Lot. Section 1.17. "Mortgagee" — The beneficiary of a Deed of Trust as well as the mortgagee of a Mortgage. Section 1.18. "Owner" — The record owners, whether one or more persons or entities, of fee simple title to any Lot, including contract sellers, but excluding those having such interests merely as security for the performance of an obligation. Section 1.19. "Phase" — A Declaration of Annexation may describe one or more separate Phases by setting forth which Lots and Common Area (if any) are within such Phase(s). Unless a Declaration of Annexation defines a Phase differently, a Phase shall consist of those Lots (and Common Area) within the Project which are covered by a separate Final , San Pacifico Area A - . * . • .;:. 7/8/97 ''.''..' ;.:-• .'• . -3- . v.-:M.'v.-. Subdivision Public Report or which are described in a Final Subdivision Public Report as constituting a separate Phase. "Final Subdivision Public Report" refers to such report issued by the California Department of Real Estate as the report may be amended from time to time. One or more Phases may be annexed by the same Declaration of Annexation.. Section 1.20. "Project" — Phase 1 and each additional Phase which is annexed to this Declaration. Section 1.21. "Retail Purchaser" — A person who purchases a Lot under authority of a Final Subdivision Public Report issued by the California Department of Real Estate. Neither Declarant nor any successive Declarant are Retail Purchasers. Section 1.22. "Site Development Plan" — The Site Development Plan or Plans approved by the City for the Project. ARTICLE II PROPERTY RIGHTS IN COMMON AREA Section 2.1. Owners' Easement of Use. The Common Area is intended to consist of private streets and open space only (generally consisting of slopes) and no recreational areas are currently planned. Should Common Area include recreational areas or should pedestrian access be made available within the open space areas, then every Owner shall have a right and easement of ingress, egress and of enjoyment in and to such Common Area which easement shall be appurtenant to and shall pass with the title to the Owner's Lot. Such right and easement shall be subject to the following provisions: (a) The right of the Association to suspend the voting rights and right to use of the Common Area by an Owner for any period during which any Association assessment against his Lot remains unpaid; and for a period not to exceed thirty (30) days for any infraction of the published rules and regulations of the Association. No suspension shall be effective unless the Owner has been given fifteen (15) days' prior notice of the suspension and the reasons therefor and the Owner has been given an opportunity to be heard by the Board, orally or in writing, not less than five (5) days prior to the effective date of the suspension. Notice may be given to the Owner by any method reasonably calculated to provide actual notice, but if given by mail must be given by first-class or registered mail sent to the last address of the Owner shown on the records of the Association. (b) The right of the Association to dedicate or transfer all or any part of the Common Area to any public agency, authority or utility for such purposes and subject to such conditions as may be agreed to by the Board. (c) The right of the Association, in accordance with the Articles and Bylaws, to borrow money for the purpose of improving the Common Area and, with the assent of two-thirds (2/3) of each class of Members, hypothecate any or all real or personal property owned by the Association. San Paciflco Area A 7/8/97 -4- (d) The right of access, ingress and egress over the Common Area and the right of installation and use of utilities on the Common Area for the benefit of Lots. (e) The right of the Association to grant maintenance, access and utility easements over the Common Area to others and to convey portions of the Common Area to others. No dedication or transfer of all or substantially all of the assets of the Association shall be effective unless approved by the Members in accordance with the California CORPORATIONS CODE. (f) The right of the Association to adopt rules and regulations relating to the use of the Common Area and the governance of the Project. (g) The right of the Association to grant exclusive use easements to Owners over, under, upon and across portions of the Common Area and/or adjust boundaries between the Common Area and one or more of the Lots. However, the areas to be so adjusted or made subject to use easements shall in the Board's opinion not be materially adverse to another Owner. (h) Subject to a concomitant obligation to restore, Declarant and its sales agents, employees and independent contractors shall have: (i) A non-exclusive easement over the Common Area for the purpose of making repairs to the Common Area or the residences on the Lots it owns, provided access is not otherwise reasonably available, and for the purpose of constructing, marketing and maintaining Phase 1 and the Annexable Property, including the construction of residences and related improvements; and (ii) The other rights and easements (including those of Declarant) set forth in this Declaration. Section 2.2. City Easement. The City shall have an easement over the Common Area and any Common Maintenance Area for maintenance purposes which may be exercised upon the failure of the Association to maintain the Common Area or any Common Maintenance Area in accordance with the conditions of approval of the Final Maps, pursuant to Section 9.6 of this Declaration. Section 2.3. Delegation of Use. Any Owner may delegate, in accordance with the Bylaws, his rights of enjoyment to the Common Area and facilities to the members of his family, his tenants or contract purchasers who reside on the Owner's Lot. Section 2.4. Conveyance of Common Area. Conveyance of the Common Area to the Association shall be made subject to all covenants, conditions, restrictions, reservations, dedications, easements and other items of the record. San Pacifico Area A 7/8/97 -5- ARTICLE III MEMBERSHIP AND VOTING RIGHTS IN ASSOCIATION Section 3.1. Membership. Every Owner of a Lot which is subject to assessment by the Association shall be a Member of the Association. Membership is appurtenant to and may not be separated from ownership of a Lot. Section 3.2. Voting Rights. The Association shall have two (2) classes of voting membership: Class A. Class A Members shall be all Owners, with the exception of Declarant, and shall be entitled to one (1) vote for each Lot owned. When more than one (1) person holds an interest in any Lot, all such persons shall be Members. The vote for the Lot shall be exercised as the Owners among themselves determine, but in no event shall more than one (1) vote be cast with respect to any Lot. Class B. Class B Member(s) shall be Declarant and shall be entitled to three (3) votes for each Lot owned. The Class B membership shall cease and be converted to Class A membership on the happening of the earlier of the following to occur: (i) two (2) years following the first conveyance of a Lot pursuant to the most recently issued original Final Subdivision Public Report for a Phase; or (ii) four (4) years following the date of the first conveyance of a Lot pursuant to the original Final Subdivision Public Report for Phase 1. Voting rights shall not commence with respect to a Lot until the Association's regular assessments have commenced against the Lot. ARTICLE IV COVENANT FOR MAINTENANCE ASSESSMENTS TO ASSOCIATION Section 4.1. Creation of Lien and Personal Obligation for Assessments. Declarant, for each Lot owned, covenants, and each Owner of a Lot by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, is deemed to covenant to pay to the Association: (a) regular assessments or charges which shall include an adequate reserve fund for the periodic maintenance, repair and replacement of the Common Area and Common Maintenance Area; and (b) special assessments. The regular and special assessments, together with interest, late charges, costs and reasonable attorney's fees, shall (except as otherwise provided in Section 4.4 below) be a charge on the land and shall be a continuing lien upon the Lot against which each such assessment is made. The lien shall be effective upon recordation of a notice of delinquent assessment. Each assessment, together with interest, late charges, costs and reasonable attorney's fees, shall also be the personal obligation of the person who was the Owner of the Lot at the time the assessment is due. San Pacifico Area A ' 7/8/97 • -6- Section 4.2. Purpose of Assessments. The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety and welfare of the residents of the Project, for the improvement and maintenance of the Common Area and Common Maintenance Area, and to reimburse the Association for the costs incurred in bringing an Owner into compliance with the Articles, Bylaws, Declaration and rules and regulations adopted by the Board. The regular assessment is the assessment determined annually by the Board to meet the expenses of the Association, including the establishment of reserve accounts, for the next fiscal year based upon the annual budget adopted by the Board pursuant to the Bylaws. A special assessment is an assessment the Board, in its discretion, determines necessary if the Association's available funds are or will become inadequate to meet the estimated expenses of the Association for the fiscal year. The Board may levy the entire special assessment immediately or levy it in installments over a period the Board determines appropriate. In addition, a special assessment against a particular Owner only may be levied by the Board as set forth in Section 4.4 of the Declaration. The Board shall provide notice by first-class mail to each Owner of any increase in the regular assessment or of any special assessment not fewer than thirty (30) days nor more than sixty (60) days prior to the increased assessment or special assessment becoming due. Section 4.3. Limitation on Regular and Special Assessments. The Board shall levy regular and special assessments sufficient to perform the obligations of the Association as provided in the Declaration and Bylaws; provided, however, except for assessment increases necessary for emergency situations: (a) the Board may not increase the regular assessments for any fiscal year unless the Board has complied with the provisions of California CIVIL CODE §1365.5 (preparation and distribution of the budget), and (b) the Board may not impose a regular assessment that is more than twenty percent (20%) greater than the regular assessment for the Association's preceding fiscal year nor special assessments which in the aggregate exceed five percent (5%) of the budgeted gross expense of the Association for the fiscal year, without the approval of Owners casting a majority of the votes at a meeting or election of the Association conducted in accordance with Chapter 5 (commencing with §7510) of Part 3 of Division 2 of Title 1 of the California CORPORATIONS CODE and §7613 of the California CORPORATIONS CODE at which a quorum was present or participated. For purposes of this Section 4.3, "quorum" means more than fifty percent (50%) of the Owners. An emergency situation is any one of the following: (1) An extraordinary expense required by an order of a court. (2) An extraordinary expense necessary to repair or maintain the Project or any part of the Project for which the Association is responsible where a threat to personal safety in the Project is discovered. (3) An extraordinary expense necessary to repair or maintain the Project or any part of the Project for which the Association is responsible that could not have been reasonably foreseen by the Board in preparing and distributing the pro forma San Pacifico Area A ' =' 7/8/97 ;.'.:• ' ;. -7- operating budget under CIVIL CODE §1365. However, prior to the imposition or collec- tion of an assessment under this Subsection, the Board shall pass a resolution containing written findings as to the necessity of the extraordinary expense involved and why the expense was not or could not have been reasonably foreseen in the budgeting process, and the resolution shall be distributed to the Members with the notice of assessment. The term "regular assessment for the Association's preceding fiscal year" as used in this Section 4.3 is deemed to be the regular assessment which would have existed in the absence of any subsidy of assessments agreed to be paid by Declarant. Anything in this Section 4.3 to the contrary notwithstanding, the limitation on regular and special assessments shall comply with the laws of the State of California at the time the regular or special assessment is levied by the Association. Section 4.4. Individual Special Assessments. The Association may also impose a special assessment against a Member to reimburse the Association for costs incurred in bringing a Member or the Member's Lot into compliance with the provisions of the Declaration, the Articles, the Bylaws and the Association rules and regulations, which assessment may be imposed upon the vote of the Board after notice and an opportunity for a hearing which satisfy the requirements of §7341 of the California CORPORATIONS CODE; provided, however, that except to the extent the special assessment is to reimburse the Association for the cost of collecting assessments, a special assessment levied pursuant to this Section 4.4 shall not constitute a lien on the Member's Lot. Section 4.5. Uniform Rate of Assessment. Both regular and special assessments (other than a special assessment levied against an Owner to bring the Owner or the Owner's Lot into compliance with the Declaration, Articles, Bylaws or rules and regulations of the Board) shall be fixed at a uniform rate for all Lots and may be collected on a quarterly, monthly or other periodic basis as determined by the Board. However, this Section does not apply to Model Homes which are subject to the Section below entitled "Model Homes". Section 4.6. Date of Commencement of Regular Assessments: Due Dates. Regular assessments shall commence as to all Lots in Phase 1 on the first day of the month following the first conveyance of a Lot in Phase 1 to an Owner other than Declarant. The regular assess- ments shall commence as to all Lots in a subsequent Phase on the first day of the month following the first conveyance of a Lot to an Owner other than Declarant in that Phase. The Board shall fix the amount of the regular assessment against each Lot at least thirty (30) days in advance of each regular assessment period. Written notice of the regular assessment shall be sent to every Owner. The due dates for payment of assessments shall be established by the Board. Section 4.7. Model Homes. Conveyance of a Lot which is being used by Declarant for model home, sales office, design center, construction office or similar purposes (any of which uses are referred to in this Section as "Model Home") shall not commence the regular assessments against such Lots or other Lots within the Phase until: (a) discontinuance of use of such Lot as a Model Home; or San Pacifico Area A . 7/8/97 . , -8- (b) conveyance of any non-Model Home Lot in the Phase, whichever first occurs. During the period of time commencing on the first day of the month after conveyance of a Lot being used by Declarant as a Model Home and ending on the date regular assessments commence against such Lot, Declarant shall be solely responsible to main- tain all portions of the Phase in which a Lot is being used as Model Home. The Board shall have the right to inspect the areas being maintained by Declarant pursuant to this Section to determine that such maintenance meets reasonable standards. Section 4.8. Uncompleted Facilities. The Board may exclude from assessments that portion which is for the purpose of defraying expenses and reserves directly attributable to the existence of a Common Area or Common Maintenance Area improvement that is not complete at the time the assessments commence. Any such exemption from assessments attributable to an Association maintained facility shall be in effect only until the earliest of the following events: (a) The improvement has been completed as evidenced by the recordation of a Notice of Completion; or (b) The improvement has been installed and placed into use. Section 4.9. Effect of IMon-Payment of Assessments: Remedies of Association. Any assessment made in accordance with the Declaration shall be a debt of the Owner of a Lot at the time the assessment is due. Any assessment not paid within thirty (30) days after the due date shall bear interest from thirty (30) days following the due date at the rate of twelve percent (12%) per annum. The Association may bring an action at law against the Owner personally obligated to pay the assessment and, in addition thereto or in lieu thereof, may foreclose the lien against the Lot. Before the Association may place a lien upon a Lot to collect a debt which is past due, the Association shall notify the Owner in writing by certified mail of the fee and penalty procedures of the Association, provide an itemized statement of the charges owed by the Owner, including items on the statement which indicate the principal owed, any late charges and the method of calculation, any attorney's fees and the collection practices used by the Association, including the right of the Association to the reasonable costs of collection. Any payments toward such a debt shall be first applied to the principal owed, and only after the principal owed is paid in full shall such payments be applied to interest or collection expenses. Any assessment not paid within fifteen (15) days after the due date shall be delinquent. Except as otherwise provided in Section 4.4 above, the amount of any delinquent assessment plus costs of collection, late charges, penalties, interest and attorney's fees, shall be and become a lien upon the Lot when the Association causes to be recorded with the County Recorder of San Diego County, California, a Notice of Delinquent Assessment. The Notice of Delinquent Assessment shall state the amount of the delinquent assessment and the other charges as may be authorized by the Declaration, a description of the Lot against which the assessment has been made, the name of the record owner of the Lot and, in order for the lien to be foreclosed by non-judicial foreclosure, the name and address of. the trustee- San Pacifico Area A . . . ' •••... 7/8/97 -9- ...:';• authorized by the Association to enforce the lien by sale. The Notice of Delinquent Assessment shall be signed by the person designated by the Association for that purpose or, if no one is designated, by the President of the Association, and mailed in the manner set forth in CIVIL CODE §2924b to all record owners of the Owner's interest in the Project no later than ten (10) calendar days after recordation of the Notice of Delinquent Assessment. Upon payment of the delinquent assessment and charges in connection with which the Notice of Delinquent Assessment has been recorded, or other satisfaction thereof, the Association shall cause to be recorded a further notice stating the satisfaction and the release of the assessment lien. The assessment lien may be enforced by sale by the Association after failure of the Owner to pay the assessment and expiration of thirty (30) days following the recording of a lien created pursuant to this Section. The sale shall be conducted in accordance with the provisions of §2924, §2924b and §2924c of the California CIVIL CODE applicable to the exercise of powers of sale in mortgages or in any other manner permitted by law. The Associa- tion shall have the power to purchase the Lot at the foreclosure sale and to hold, lease, mortgage and convey the Lot. Suit to recover a money judgment for unpaid assessments, rent and attorney's fees shall be maintainable without foreclosing or waiving the lien securing the assessment. Section 4.10. Subordination of the Lien to First Mortgages. The assessment lien shall be subordinate to the lien of any first Mortgage, and the sale or transfer of any Lot pursuant to judicial or non-judicial foreclosure of a first Mortgage shall extinguish the lien of the assessment as to payments which became due prior to the sale or transfer. No sale or transfer shall relieve the Lot from lien rights for any assessments thereafter becoming due. When the Mortgagee of a first Mortgage or other purchaser of a Lot obtains title to the Lot as a result of foreclosure, the acquirer of title, his successors and assigns, shall not be liable for the share of the common expenses or assessments by the Association chargeable to the Lot which was due prior to the acquisition of title to the Lot by such acquirer, except for a share of the charges or assessments resulting from a re-allocation of the charges or assessments which are made against all Lots. Section 4.11. Estoppel Certificate. The Association shall furnish or cause an appro- priate officer to furnish, upon demand by any person, a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid. A properly executed certificate of the Association as to the status of assessments on a Lot is binding upon the Association as of the date of its issuance. Section 4.12. Personal Liability of Owner. No Member may exempt himself or herself from personal liability for assessments levied by the Association, nor release the Lot owned by the Owner from the liens and charges for assessments by waiver of the use and enjoyment of the Common Area or by abandonment of the Owner's Lot. Section 4.13. Exempt Property. All properties dedicated to and accepted by a local public authority, and all properties owned by a charitable nonprofit organization exempt from taxation by the laws of the State of California, shall be exempt from assessment by the Association. However, no land or improvements devoted to dwelling use shall be exempt from assessments by the Association. San Pacifico Area A 7/8/97 -10- Section 4.14. Assessments Levied Bv Citv. In the event the City performs main- tenance of the Common Area as provided in Section 9.6, the City shall be entitled to reimbursement from the Owners for the actual costs incurred by the City in performing such maintenance. After performing such maintenance, the City shall provide written notice to the Owners, with a copy to the Association, setting forth the total amount due from each Owner with respect to such maintenance. The amount to be reimbursed to the City shall be allocated among the Owners at a uniform rate for all Lots. The City shall be entitled to collect, and each Owner shall pay to the City, all or any portion of the regular assessments otherwise payable by such Owner to the Association, until such time as the City has been paid the amount due from such Owner in full. Each Owner shall be entitled to an offset from the regular assessments otherwise payable to the Association in an amount equal to the amounts paid to the City pursuant to this Section. If any Owner fails to pay such regular assessments to the City, the City shall have the right to enforce the obligation of an Owner to pay such assessments in the same manner as the Association with regard to regular assessments as provided in Section 4.9 of this Declaration. ARTICLE V GOVERNMENTAL REGULATIONS Section 5.1. Project Is Subject to Regulations. The Project and its use are subject to the jurisdiction of the City, and the ordinances, regulations and permits issued by the City, including the conditions to approval of the tentative tract maps for the Final Maps, the Site Development Plans applicable to the Project and to coastal development permits issued by the California Coastal Commission. Each Owner shall at all times comply with each governmental ordinance, regulation or permit which is applicable to such Owner's Lot. Section 5.2. City Not Responsible to Enforce. As stated in this Declaration, the City has the rights to enforce certain provisions of this Declaration. However, it is expressly understood that the City has no obligation to enforce the provisions of these covenants and restrictions. ARTICLE VI ARCHITECTURAL CONTROL Section 6.1. Architectural Committee. No improvements or exterior changes to any improvements shall be made to any Lot (including, but not limited to, construction, installation or alteration of any building or landscaping) until the plans and specifications therefor showing the nature, design, kind, shape, height, width, color, materials and location have been submitted to and approved in writing by a committee of not less than three (3) nor more than five (5) persons ("Committee") unless the Committee has categorically exempted the particular improvements from its review. All members of the Committee may be appointed and replaced by Declarant until one (1) year following issuance by the California Department of Real Estate of the original Final Subdivision Public Report for Phase 1. Thereafter, a majority of the members of the Committee may be appointed and replaced by Declarant and a minority of the members of the Committee may be appointed or replaced by the Board until ninety-nine (99) Lots (being ninety percent (90%) of the Lots planned for Phase 1 and the Annexable Property) San Pacifico Area A ' '' • .-•.:.•-'". 7/8/97 -11- . . have been conveyed of record to Retail Purchasers or until five (5) years following issuance by the California Department of Real Estate of the original Final Subdivision Public Report for Phase 1, whichever shall first occur. Thereafter, all members of the Committee may be appointed or replaced by the Board. Committee members appointed by Declarant need not be Members of the Association. Committee members appointed by the Board shall be Members of the Association. Persons submitting proposals or plans and specifications to the Committee (each person is referred to as the "Applicant") must obtain a dated, written receipt for such plans and specifications and furnish the Committee with the address to which communications from the Committee to the Applicant are to be directed. Section 6.2. Committee Approval. The Committee shall approve proposals or plans and specifications submitted for its approval only if it deems that the construction, alteration, addition or other construction activity contemplated thereby in the locations indicated will not be detrimental to the appearance of the Project and surrounding real property as a whole, and that the appearance of any structure or other improvement will be in harmony with the surrounding structures and improvements. However, the Committee shall have the right from time to time to categorically exempt certain types of improvements from review by the Committee. Improvements to back yards are hereby declared to be categorically exempt from review by the Committee unless the Committee decides at a later date to extend its jurisdiction to back yard improvements. The Committee will not have jurisdiction to require removal of any improvements which were exempt from Committee approval when installed. However, the Committee does have jurisdiction to approve or disapprove any changes to such improvements or to require landscaping to be trimmed and/or thinned. Section 6.3. Other Approvals. In addition to Committee approval, improvements to a Lot may require a building permit or other approval from the City and/or the California Coastal Commission. Section 6.4. Approved Conditions. The Committee may condition its approval of proposals or plans and specifications on such changes thereto as it deems appropriate, and may require submission of additional plans and specifications or other information prior to approving or disapproving material submitted. The Committee may adopt, amend or supple- ment the architectural guidelines (i) concerning design and materials standards, rules and guidelines for construction activities; (ii) setting forth procedures for the submission of plans for approval; (iii) requiring a reasonable fee ("Review Fee") payable to the Committee for any costs involved to accompany each application for approval; and (iv) specifying additional factors which it will take into consideration in reviewing submissions. The Committee may require such detail in plans and specifications submitted for its review as it deems proper, including, without limitation, floor plans, site plans, drainage plans, elevation drawings and description or samples of plantings, exterior materials and colors. Until receipt by the Committee of all plans, specifications or other materials deemed necessary by the Committee, the Committee may postpone review of any plans submitted for approval. Section 6.5. Notification. Decisions of the Committee and the reasons for decisions shall be transmitted by the Committee to the Applicant at the address set forth in the application for approval within forty-five (45) days after receipt by the Committee of all materials required by the Committee. Any application submitted pursuant to this Article VI shall be deemed approved, unless the Committee's written disapproval or a request for> San Pacifico Area A ' 7/8/97 . • -12- .. • . ,r -• additional information or materials is transmitted to the Applicant within forty-five (45) days after the date of receipt by the Committee of all required materials. Section 6.6. Waiver. The approval of the Committee of any proposals or plans and specifications or drawings for any work done or proposed or in connection with any other matter requiring the approval and consent of the Committee shall not be deemed to constitute a waiver of any right to withhold approval or consent as to any similar proposals, plans and specifications, drawings or matters whatever subsequently or additionally submitted for approval or consent. Section 6.7. No Liability. Neither the Committee, nor any members of the Committee, nor their duly authorized representatives, shall be liable to any Applicant or Lot Owner for any loss, damage or injury arising out of or in any way connected with the perfor- mance of the Committee's duties, unless due to the willful misconduct of the Committee. Section 6.8. Design Criteria. The Committee shall review and approve or disapprove all plans submitted to it for any proposed improvement, alteration, addition or other construction activity on the basis of satisfaction of the Committee with the grading plan, location of the improvements on the Lot, the finished ground elevation, the color scheme, finish, design, proportions, architecture, shape, height, style, appropriateness of proposed improvements, affect on adjoining Lots, the materials to be used, the kinds, pitch or type of roof proposed, the planting, landscaping, size, height or location of vegetation on a Lot, and on the basis of aesthetic considerations and the overall benefit or detriment to the Project and surrounding real property generally which would result from such improvement, alteration, addition or other construction activity. Although the Committee shall take into consideration the aesthetic aspects of the architectural designs, placement of buildings, landscaping, color, schemes, exterior finishes and materials, and similar featur-es, it shall not be responsible for reviewing, nor shall its approval of any plans or design be deemed approval of, any plan or design from the standpoint of adequacy of drainage, structural safety, view impacts or conformance with building or other codes. The Committee approval of any particular construction activity shall expire and the plans and specifications therefor shall be resubmitted for Committee approval if substantial work pursuant to the approved plans and specifications is not commenced within six (6) months after the Committee's approval of such construction activity. All construction activities shall be performed as promptly and as diligently as possible and shall be completed within such reasonable period of time specified by the Committee. Section 6.9. Variances. The Committee may authorize variances from compliance with any of the architectural provisions of this Article VI, including, without limitation, restric- tions on height, size, floor area or placement of structures, or similar restrictions, when circumstances such as topography, natural obstructions, hardship, aesthetic or environmental considerations may require. Such variances must be in writing, and must be signed and acknowledged by at least a majority of the members of the Committee. The granting of a variance shall not operate to waive any of the terms and provisions of this Article VI for any purpose except as to the particular property and particular provision covered by the variance, nor shall it affect in any way the Owner's obligation to comply with all laws and regulations of any governmental authority affecting the use of his Lot, including, but not limited to, zoning and building requirements of any governmental agency or entity having jurisdiction over the LOt. - . ; • \ ,; San Pacifico Area A . . . . ' '7/8/97 -13- v,.,,, ••;:. Section 6.10. Committee Guidelines. The Committee shall adopt rules for the conduct of its affairs and design guidelines for construction activities. The architectural guidelines of the Committee may provide for the pre-approval of certain specified types or categories of construction activities, provided that such pre-approved construction activities are implemented by the affected Owner in conformance with the standards for design, materials and other criteria established in the architectural guidelines for such pre-approved construction activities. The Committee may from time to time adopt, supplement or amend architectural guidelines to establish, expand, limit or otherwise modify the categories and criteria for any pre-approved construction activities. Section 6.11. Declarant Exemption. This Article VI shall not apply to, and the Committee shall have no authority or responsibility to review or approve any, improvements made by Declarant on any Lot or to the Common Area or Common Maintenance Area. ARTICLE VII USE RESTRICTIONS Section 7.1. In General. Each Lot shall be held, used and enjoyed subject to the following limitations and restrictions, but also subject to the exemptions of Declarant set forth in this Declaration. Section 7.2. Use Restrictions In The Master Declaration. In order to allow the Association to enforce certain provisions of the Master Association, some of the provisions of the Master Declaration are incorporated by reference in this Article. Such provisions are denoted by "Same as Master Declaration Section " and include the Section of the Master Declaration so denoted together with any applicable definitions set forth in the Master Declaration and any other provisions which are referred to in any Section of the Master Declaration so denoted. Amendment(s) of any such provision(s) in the Master Declaration will also automatically amend such provisions as incorporated in this Declaration. However, should this Declaration be amended to make any such provision more restrictive, then the wording of this Declaration shall apply with respect to the Project. Section 7.3. Single Family Residence. Same as Master Declaration Section 10.1 Section 7.4. Business or Commercial Activity. Same as Master Declaration Section 10.2. Section 7.5. Nuisances. Same as Master Declaration Section 10.3. Section 7.6. Signs. Same as Master Declaration Section 10.4. Section 7.7. Parking and Vehicular Restrictions. Same as Master Declaration Section 10.5. . Section 7.8. Animal Restrictions. Same as Master Declaration Section 10.6. Section 7.9. Trash. Same as Master Declaration Section 10.7. ^ ' - * ' • ISan Pacifico Area A , , 7/8/97 -14- f '« Section 7.10. Temporary Buildings. Same as Master Declaration Section 10.8. Section 7.11. Outside Installations. Same as Master Declaration Section 10.10. Section 7.12. Antennae. Same as Master Declaration Section 10.11. Section 7.13. Drilling. Same as Master Declaration Section 10.12. Section 7.14. Drainage. Same as Master Declaration Section 10.14. Section 7.15. Water Supply Systems. Same as Master Declaration Section 10.15. Section 7.16. Inside Installations. Same as Master Declaration Section 10.1 6. Section 7.17. Views. Same as Master Declaration Section 10.17. Section 7.18. Rights of Disabled. Same as Master Declaration Section 10.19. Section 7.19. No Hazardous Activities. No activities shall be conducted on any portion of the Project and no improvements shall be constructed on any Lot which are or might be unsafe or hazardous to any person or property. Reasonable and customary construction activities by Declarant or any Owner shall not be deemed to constitute hazardous activities. Section 7.20. Unsightly Articles. No unsightly articles shall be permitted to remain on any Lot so as to be visible from any other portion of the Project. Without limiting the generality of the foregoing, all refuse, garbage and trash sha^l be kept from public view at all times. Trash for pick up shall be placed in covered, sanitary containers of good condition and such container shall be placed in public view no earlier than the evening before pick up and shall be removed from public view on the day of pick up. No clotheslines shall be installed on any Lot in such a manner as to be within public view. No clothing or household fabrics shall be hung, dried or aired on any Lot, and no lumber, grass, shrub or tree clipping or plant waste, metals, bulk materials or scrap or refuse or trash shall be kept, stored or allowed to accumulate on any Lot, except within an enclosed structure or otherwise appropriately screened from public view. Section 7.21. No Temporary Structures. No tent, shack or other temporary building, improvement or structure shall be placed upon any portion of the Project except with the approval of the Committee. This Section shall not apply to temporary structures which are reasonable and customary to facilitate construction activities on any Lot. Section 7.22. Grading. No Lot shall be regraded by any Owner in any manner which increases water runoff on any other Lot, and no such grading shall be permitted without approval by the City of Carlsbad. Section 7.23. Owners Responsible for Damage. Should any Owner or such Owner's employees, agents or contractors cause any damage to sidewalks, curbs or other City property or rights of way, such Owner shall immediately and fully repair such damage at the Owner's San Pacifico Area A 7/8/97 ' -15- , •". . ^fe-V : :. expense. In the event such damage is repaired by the City or Declarant, the Owner shall immediately reimburse such party for the full costs of repair. Section 7.24. Construction and Sales Activities. The development,- construction, marketing and sales activities of each Declarant are exempt from the covenants, restrictions and limitations set forth in this Article. None of the covenants, restrictions and limitations set forth in this Article or elsewhere in this Declaration shall be applied to the development, construction, marketing or sales activities of Declarant or construed in such a manner as to prevent or limit development, construction, marketing or sales activities by Declarant. Section 7.25. Owners May Not Change Common Area. No Owner shall have any right whatsoever to make any change or improvement to the Common Area or Common Maintenance Area and no Owner shall cause any damage to the Common Area or Common Maintenance Area. Each Owner shall be liable to the Association and the other Owners for any damage to any of the Common Area or Common Maintenance Area that may be sustained by reason of the negligence of that Owner, that Owner's family members, contract purchasers, tenants, guests, or invitees. Section 7.26. Burning. There shall be no exterior fires whatsoever except barbecue fires located only upon the Owner's Lot and contained within receptacles designed for such purpose. Otherwise, burning is not permitted on Lots unless prior written approval is given by the Association and such Owner acts in compliance with all local governmental fire safety and permit regulations. No Owner shall permit any condition to exist on his or her Lot, including, without limitation, trash piles or weeds, which creates a fire hazard or is in violation of local fire regulations and fuel modification and brush management requirements. Section 7.27. Mo Private Maintenance or Development of Common Area or Common Maintenance Area. Unless the Board agrees otherwise, no Owner shall maintain the Common Area or Common Maintenance Area. Unless the Board and the City agree otherwise, no Owner shall make any improvement or in any manner develop the Common Area or Common Maintenance Area. Section 7.28. Guest Parking Only On Street. Pursuant to the requirements of the City, guest parking only shall be allowed on both sides of the thirty-six foot wide streets within the Project. Pursuant to Section 1 7.04.020 of the Carlsbad Municipal Code, one side of any street or private drive in the Project which are less than thirty-six feet wide shall be kept clear of parked vehicles at all times and shall have posted "No Parking/Fire Lane". Section 7.29. Certain Provisions of Citv Resolutions. One or more of the City Planning Commission Resolutions which approved the Final Maps (i.e. Resolution Numbers 3751, 3753, 3769 and 3771) include, among other matters, the following provisions: (a) "Approval of this tentative map shall expire twenty-four (24) months from the date of City Council approval unless a final map is recorded. An extension, may be requested by the applicant. Said extension shall be approved or denied at the discretion of the City Council. In approving an extension, the City Council may impose new conditions and may revise existing conditions pursuant to Section 20.12.110(a)(2) Carlsbad Municipal Code." • •, . ; San Pacifico Area A , '" , ' 7/8/97 ••': - -16- .'"''. ;'.;'•:: . (b) "Prior to issuance of building permits, complete building plans shall be submitted to and approved by the Fire Department". (c) "This project is located within the West Batiquitos -Lagoon Local Coastal Program. All development design shall comply with the requirements of that plan". [Condition 27 of Resolution No. 3771]. Section 7.30. Post-Tensioned Slabs. The residences on some or all of the Lots may have been constructed with post-tensioned concrete slabs ("System"). The System involves placing steel cables under high tension in the concrete slab located beneath the residence. Each Owner shall be responsible for determining whether the residence on his Lot has been constructed with a System. Any attempt by an Owner or other person to alter or pierce the foundation (e.g., saw cutting or drilling) could damage the integrity of the System and/or cause serious injury or damage to persons and property. No Owner shall cut into or otherwise disturb the System upon which the residence on his Lot is constructed. The Owner of each Lot on which the residence has been constructed with a System agrees that neither Declarant nor any contractor of Declarant shall be responsible for any damage or injury resulting from or arising in connection with the alteration or piercing by the Owner or any employee, agent, family member, representative or other person of the slab or the foundation of the residence on the Lot. Each Owner shall hold Declarant harmless from and indemnify Declarant against all claims, demands, losses, costs (including attorney's fees), obligations and liabilities arising out of or in connection with the failure of the Owner to comply with the provisions of this Section 7.21. ARTICLE VIII INSURANCE AND CONDEMNATION Section 8.1. Insurance. (a) The Association shall procure and keep in force general liability insur- ance in the name of the Association insuring against any liability for personal injury or property damage resulting from any occurrence in or about the Common Area or Common Maintenance Area in an amount not less than $2 Million per occurrence. (b) The Association shall procure and keep in insurance, in an amount not less than $500,000 per occurrence, covering the individual liability of officers and directors of the Association for negligent acts or omissions of those persons acting in their capacity as officers and directors. (c) The Association shall maintain a fidelity bond in an amount equal to the amount of funds held by the Association during the term of the bond but not less than one-fourth (1/4) of the regular assessments, plus reserves, naming the Association as obligee and insuring against loss by reason of the acts of the Board, officers and employees of the Association, and any management agent and its employees, whether or not such persons are compensated for their services. (d) Copies of all insurance policies (or certificates) showing the premiums to have been paid shall be retained by the Association and open for inspection by San Pacifico Area A '•'.•" , . . 7/8/97 '•'•; -17- . Owners at any reasonable time(s). All insurance policies shall (i) provide that they shall not be cancelable by the insurer without first giving at least ten (10) days' prior notice in writing to the Association, and (ii) contain a waiver of subrogation by the insurer(s) against the Association, Board and Owners. (e) Anything contained herein to the contrary notwithstanding, the Association shall maintain such insurance coverage as may be required by the Federal National Mortgage Association ("FNMA") or the Federal Home Loan Mortgage Corporation ("FHLMC") so long as FNMA or FHLMC, respectively, holds a mortgage on or owns any Lot. (f) Section 1365.7 of the California CIVIL CODE provides for a partial limitation on the liability of volunteer officers and directors of the Association, provided that certain requirements, as set forth in the CODE section, are satisfied. The requirements include that general liability insurance and officers' and directors' liability insurance be carried by the Association in specified amounts. The Association shall maintain general liability insurance and officers' and directors' liability insurance in amounts which satisfy the requirements of the CODE to limit the liability of volunteer officers and directors of the Association. (g) In the event any insurance policy deductible amount relating to an Owner's property loss is charged to the Association, the Owner shall reimburse the Association upon written demand for the amount charged to the Association. Section 8.2. Condemnation. In the event the Common Area or any portion thereof shall be taken for public purposes by condemnation as a result of any action or proceeding in eminent domain, or shall be transferred in lieu of condemnation to any authority entitled to exercise the power of eminent domain, then the award or consideration for such taking or transfer shall be paid to and belong to the Association. ARTICLE IX MAINTENANCE RESPONSIBILITIES Section 9.1. Parties Responsible For Maintenance of Common Area. The following parties shall be responsible to maintain the Common Area and Common Maintenance Area: (a) Initially Declarant shall be solely responsible to maintain the Common Area. (b) Unless the deed of conveyance or a maintenance agreement between Declarant and the Association states otherwise, the Association shall become obligated to maintain the Common Area at such time as fee title to the Common Area is conveyed to the Association. (c) Unless a Notice of Declaration of Annexation or a maintenance agreement between Declarant and the Association states otherwise, the Association San Pacifico Area A 7/8/97 -18- shall be obligated to maintain all the Common Maintenance Area within a Phase upon the first close of escrow for the sale of a Lot within the Phase to a Retail Purchaser. Declarant and the Association may enter into one or more maintenance agreements in form and content acceptable to the California Department of Real Estate whereby Common Area or Common Maintenance Area maintenance or the costs of maintenance of the Common Area is shared between Declarant and the Association for the term set forth in such agreement(s). It is not intended that the Association will be obligated to share in any such costs until conveyance of the first Lot within a Phase to a Retail Purchaser. All concrete terrace drains which are located within the Common Area or Common Maintenance Area shall be maintained by the Association. Any other concrete terrace drains will be maintained by the Owner of the Lot where the drains are located. Section 9.2. Association Maintenance. The Association shall maintain and provide for the maintenance of all the Common Area and Common Maintenance Area, in good repair and appearance as set forth in the Declaration and in accordance with the requirements of the City. All open space and landscaped areas within the Common Area or Common Maintenance Area shall be maintained in a healthy and thriving condition, free from weeds, trash and debris. All private streets, sidewalks, street lights, sewer facilities, storm drain facilities and other drainage facilities, and other common facilities within the Common Area or the Common Maintenance Area shall be maintained in good condition at all times. Any damage caused to a Lot by entry of the Association shall be repaired by the Association at its expense. The Association shall not relinquish its obligation to maintain the Common Area or Common Maintenance Area without the prior consent of the Planning Commission or City Council of the City. Section 9.3. Owner Maintenance. Each Owner shall keep and maintain in good repair and appearance all portions of his or her Lot and improvements thereon (except for any portion the maintenance of which is the responsibility of the Association or a public maintenance assessment district). The improvements to be so maintained by each Owner include, but are not limited to, all portions of the residence, garage, the garage opener, lights on the residence, the landscaping and any fence or wall which is located on the Lot. Fences or walls installed by Declarant between Lots or between Lots and Common Area or Common Maintenance Area shall be deemed to establish the boundary line between such Lots or Lots and Common Area or Common Maintenance Area. Each Owner shall be obligated to maintain any fence or wail (including the structure and both the interior and exterior surfaces) which separates the Owner's Lot from Common Area or Common Maintenance Area, unless an easement for such maintenance is conveyed to the Association (Declarant does not currently intend to that the Association shall be responsible for the maintenance of fences or wails except for fences or walls, if any, which are located within the Common Area). Each Owner shall be responsible to maintain the interior surface of any fence or wall which separates the Owner's Lot from another Lot and both adjoining Owners shall be responsible to share equally in the costs to repair or replace any such fence or wall which separates their Lots. However, an Owner shall not be responsible for the costs to repair or replace a fence which is damaged by the other Owner. San Pacifico Area A 7/8/97 -19- Each Owner of a Lot shall water, weed, maintain and care for the landscaping located on his or her Lot (other than any portion which is within the Common Maintenance Area or a public maintenance assessment district) so that the same presents a neat and attrac- tive appearance. No Owner shall interfere with or damage the Common Maintenance Area or improve or alter the Common Maintenance Area or interfere with or impede Declarant, the Association or a public maintenance assessment district in connection with the maintenance of the Common Area or Common Maintenance Area. Section 9.4. Association's Right to Repair Neglected Lots. In the event that any Owner shall in the Board's opinion permit any property which is the responsibility of such Owner to maintain to fall into a dangerous, unsafe, unsightly or unattractive condition as deter- mined by the Board, then the Board shall have the right to demand that such condition be remedied. Should the condition not be remedied within fifteen (1 5) days, the Board shall have the right, but not the obligation, to correct the condition, and to enter upon the portion of the Project which has fallen into such condition for the purpose of doing so. The Owner shall promptly reimburse the Association for the cost of such corrective action, including, but not limited to, the Association's court costs and reasonable attorney's fees should the Board determine it is in its best interests to obtain a court order allowing such entrance by the Board's representatives. No entry inside a residence may be made without the consent of the Owner. Section 9.5. Maintenance By City. If the Association fails to maintain all or any portion of the Common Area or Common Maintenance Area in accordance with this Article, the City shall be entitled to give written notice to the Association, setting forth with particularity the work of maintenance or repair which the City finds to be required and requesting that the same be carried out by the Association within a period of thirty (30) days after the Association's receipt of such notice (or such longer time period as the City may specify in such notice). If the Association fails to carry out such maintenance or repair within the period specified above, the City shall be entitled to cause such work to be completed and shall be entitled to reimbursement of the costs incurred in connection therewith from the Owners, as provided in Section 4.14. ARTICLE X ANNEXATION Section 10.1. By Association. Additional residential property. Common Area and Common Maintenance Area may be annexed to the Project and to the Declaration upon the vote or written assent of two-thirds (2/3) of the voting power of Members of the Association, excluding the vote of Declarant. Upon approval by Members of the Association, the owner of the property wishing it to be annexed may file of record a Declaration of Annexation which shall extend the provisions of this Declaration to the property being annexed. Section 10.2. By Declarant. (a) Additional land within the Annexable Property may be annexed to the Project as Lots, Common Area and Common Maintenance Area and to the jurisdiction of the Association by the owner of the property without the consent of Members of the ''•'-•.-:-'- - .-' •}• ' • '......'< ... , \ ' ' •• -'. -• „ ' -'•','' '• - • •' •'"*'.. - -.'• ' f- •''$ •.'• •'.San Pacifico Area A , . -- ' t 7/8/97 -20- '-.;•"•. Association or the Board at any time within ten (10) years of the date that escrow closes to convey a Lot to a Retail Purchaser in Phase 1 or any subsequent Phase which is annexed hereto. Annexation shall be made by Declaration of Annexation executed by the owner of the land being annexed. The Declaration of Annexation may be revoked or amended at any time before the first close of sale of a Lot in the annexed property and may contain additional or different restrictions applicable to the annexed property. The obligation of Lot Owners to pay dues to the Association and the right of such Lot Owners to exercise voting rights in the Association in such annexed property shall not commence until the first day of the month following close of the first sale of a Lot by Declarant in that particular Phase of development. (b) Any Phase may be deannexed by Declarant signing and recording with the County Recorder of San Diego County a Notice of Deannexation which describes the land to be de-annexed provided that no Lot within the Phase has been conveyed to an Owner (other than between Declarants or to a successive Declarant). ARTICLE XI RIGHTS OF LENDERS Section 11.1. Payments of Taxes or Premiums by First Mortgagees. First Mortgagees may, jointly or severally, pay taxes or other charges which are in default and which may or have become a charge against the Common Area, unless the taxes or charges are separately assessed against the Owners, in which case, the rights of first Mortgagees shall be governed by the provisions of their Mortgages. First Mortgagees may, jointly or severally, also pay overdue premiums on casualty insurance policies, or secure new casualty insurance coverage on the lapse of a policy for the Common Area; first Mortgagees making such payments shall be owed immediate reimbursement from the Association. Entitlement to reimbursement shall be reflected in an agreement in favor of any first Mortgagee who requests the same to be executed by the Association. Section 11.2. Priority of Lien of Mortgage. No breach of the covenants, conditions or restrictions in the Declaration shall affect, impair, defeat or render invalid the lien or charge of any first Mortgage made in good faith and for value encumbering any Lot, but all of the covenants, conditions and restrictions shall be binding upon and effective against any Owner whose title to a Lot is derived through foreclosure or trustee's sale, or otherwise. Section 11.3. Curing Defaults. A first Mortgagee who acquires title by judicial foreclosure, deed in lieu of foreclosure or trustee's sale shall not be obligated to cure any breach of the provisions of this Declaration which is non-curable or of a type which is not practical or feasible to cure. The determination of the Board made in good faith as to whether a breach is non-curable or not feasible to cure shall be final and binding on Mortgagees. Section 11.4. Approval of First Mortgagees. Except as provided by statute in case of condemnation or substantial loss to the Lots or Common Area, unless the Mortgagees of first Mortgages encumbering sixty-seven percent (67%) or more of the Lots which are subject to a Mortgage or Owners representing sixty-seven percent (67%) of the voting power of the San Pacifico Area A ••'..,-• 7/8/97 . -21- Association (excluding the vote of Declarant) have given their prior written approval, the Association shall not: (a) By act or omission, seek to abandon, partition, subdivide, encumber, sell or transfer the Common Area. The granting of easements for public utilities or for other public purposes shall not be deemed a transfer within the meaning of this Subsection. (b) Change the method of determining the obligations, assessments, dues or other charges which may be levied against an Owner. (c) By act or omission, change, waive or abandon any scheme of regula- tions, or enforcement thereof, pertaining to the architectural design or exterior appearance of residences, the exterior maintenance of residences, the maintenance of Common Area walks or common fences and driveways, or the upkeep of lawns and plantings in the Project. (d) Fail to maintain fire and extended coverage insurance on the Common Area on a current replacement cost basis in an amount not less than one hundred percent (100%) of the insurable value, based on current replacement cost. (e) Use hazard insurance proceeds for losses to any portion of the Common Area for other than the repair, replacement or reconstruction of the Common Area. Section 11.5. Restoration of Common Area. Any restoration or repair of the Common Area after partial condemnation or damage due to an insurable event, shall be performed substantially in accordance with the Declaration and original plans and specifications unless other action is approved by holders of first Mortgages on Lots which have at least fifty-one percent (51 %) of the votes of Lots subject to Mortgage holders. Section 11.6. Professional Management. When professional management has been previously required by a first Mortgage holder, a decision to establish self-management by the Association shall require the consent of at least sixty-seven percent (67%) of the voting power of Members of the Association and the approval of holders of first Mortgages on Lots the Owners of which have at least fifty-one percent (51 %) of the votes of Lots encumbered by Mortgages. Section 11.7. Notice to Mortgagees. Upon written request to the Association identifying the name and address of the holder and the Lot number or address, any first Mortgage holder will be entitled to timely written notice of: (a) Any condemnation loss or any casualty loss which affects a material portion of the Project or any Lot on which there is a first Mortgage held by the Mortgage holder. (b) Any delinquency in the payment of assessments or charges owed by an Owner subject to a first Mortgage held by the Mortgage holder which remains Uncured for a period of sixty (60) days. San Pacifico Area A ' • 7/8/97 -22- (c) Any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Association. (d) Any proposed action which would require the consent of a specified percentage of Mortgage holders. Section 11.8. Documents to be Available. The Association shall make available to Owners and Mortgagees, and holders, insurers or guarantors of any first Mortgage, current copies of the Declaration, the Bylaws, other rules concerning the Project and the books, records and financial statements of the Association. "Available" means available for inspection, upon request, during normal business hours or under other reasonable circum- stances. The holders of first Mortgages encumbering fifty-one percent (51 %) or more of the Lots subject to a Mortgage shall be entitled to have an audited statement for the immediately preceding fiscal year prepared at their expense if one is not otherwise available. Any financial statement so requested shall be furnished within a reasonable time following the request. In the event the fifty (50) or more Lots have been made subject to this Declaration, then the Association shall make available to the holder, insurer or guarantor of any first Mortgage, an audited financial statement on submission of a written request for the same. The audited statement must be made available within one hundred and twenty (120) days of the Association's fiscal year-end. In the event fewer than fifty (50) Lots have been made subject to this Declara- tion, then a first Mortgagee shall be entitled to have an audited financial statement provided the same is prepared at the Mortgagee's expense. Section 11.9. Conflicts. In the event of any conflict between any of the provisions of this Article and any of the other provisions of the Declaration, the provisions of this Article shall control. ARTICLE XII GENERAL PROVISIONS Section 12.1. Enforcement. The Association, Declarant and any Owner shall have the right to enforce by any proceedings at law or in equity, all covenants, conditions, restrictions and reservations imposed by the provisions of the Declaration and rules and regulations adopted pursuant to this Declaration. Each Owner shall have a right of action against the Association for any failure of the Association to comply with the provisions of the Declaration or of the Bylaws or Articles. Failure by the Association, Declarant or any Owner to enforce any covenant, condition, restriction or reservation in the Declaration shall not be deemed a waiver of the right to do so thereafter. The City shall have the right, but not the obligation, to enforce the provisions of the Declaration and for such purposes shall be deemed a party hereto. In the event the City files a legal action to enforce the provisions of the Declaration and it is the prevailing party in the litigation, it shall be entitled to recover costs of suit and attorney's fees incurred in the litigation. San Pacifico Area A 7/8/97 -23- Section 12.2. Severability. Should any provision in the Declaration be void or become invalid or unenforceable in law or equity by judgment or court order, the remaining provisions shall be and remain in full force and effect. Section 12.3. Amendments. Except as may otherwise be stated in the Declaration, during the period of time prior to conversion of the Class B membership in the Association to Class A membership, this Declaration may be amended at any time and from time to time by the vote or written consent of sixty-seven percent (67%) of the voting power of each class of Members of the Association, any which amendment shall become effective upon recording with the Office of the County Recorder of San Diego County, California. After conversion of the Class 8 membership in the Association to Class A membership, the Declaration may be amended at any time and from time to time by the vote or written consent of (a) sixty-seven percent (67%)of the total voting power of the Association, and (b) at least sixty-seven percent (67%) of the voting power of Members of the Association other than Declarant. Anything herein stated to the contrary notwithstanding, no material amendment may be made to this Declaration without the prior written consent of Mortgagees of first Mortgages encumbering fifty-one percent (51%) or more of the Lots within the Project which are subject to a Mortgage. "Material amendment" shall mean, for purposes of this Section 12.3, any amend- ments to provisions of this Declaration which would be likely to diminish the value of a Lot or reduce or eliminate any lender's right set forth in this Declaration. An amendment to the Declaration shall not be considered material if it is for the purpose of correcting technical errors or for clarification or for making a change which is of no practical significance. A first Mortgagee who receives a written request delivered by certified or registered mail, return receipt requested, to approve amendments who does not deliver or mail to the requesting party a negative response within thirty (30) days, shall be deemed to have approved such request. Notwithstanding the above provisions, (i) the percentage of the voting power necessary to amend a specific clause or provision in the Declaration shall not be less than the percentage of affirmative votes necessary for action to be taken under that clause or provision; and (ii) any amendment to this Declaration shall require the consent of the City Attorney of the City if such amendment would reduce or eliminate the standards of maintenance and repair of Lots, Common Area or Common Maintenance Area or reduce or eliminate any right of the City set forth in this Declaration. The percentage of membership votes or written consents required to amend the Declaration may be reduced under certain circumstances by Court Order obtained pursuant to California CIVIL CODE §1356. In addition, no amendment to or revocation of the provisions of Sections 2.2, 4.9 (to the extent of the City's lien rights thereunder), 4.14, 7.27, 9.2, or 12.1 shall be made without the prior written consent of the City Attorney and Planning Director. Section 12.4. Extension of Declaration. Each and all of the covenants, conditions and restrictions shall run with and bind the Project for a term of thirty (30) years from the date the Declaration is recorded, after which date they shall automatically be extended for successive periods of ten (10) years, unless the Owners of two-thirds (2/3) of the Lots subject to the , ~ ' .-.'.••*' , .'-. p .,i'-'.. ',- ; -" San Pacifico Area A 7/8/97 -24- Declaration have executed and recorded at any time within six (6) months prior to the end of the thirty (30) year period, or within six (6) months prior to the end of any such ten (10) year period, in the manner required for a conveyance of real property, a written instrument in which it is agreed that the restrictions shall terminate at the end of the thirty (30) year period or at the end of any ten (10) year period. Section 12.5. Encroachment Easements. The following easements are hereby reserved by Declarant, subject to all items of record, including, but not limited to, the general utility easements of record: (a) It is intended that, unless Declarant decides to relocate the same, each fence or wall installed by Declarant with the intention of separating Lots from one another, or separating a Lot from Common Area, or separating a Lot from Common Maintenance Area shall establish the usable boundaries between the affected Lots, the Lots and Common Area and the Lots and Common Maintenance Area, respectively, regardless of whether the fence or wall lies exactly on the boundary line. An easement is hereby reserved for each such fence or wall to be repaired and replaced by the party(ies) obligated to maintain the same, in the location where such fence or wall was so installed by Declarant. Declarant shall have the right, but not the obligation, to relocate any such fence or wall to the applicable boundary line during the period of time that Declarant has the right to annex Lots to this Declaration. The portions of land lying inside a fence or wall may be used by the adjoining Owner for yard purposes, subject to any open space easements or other items of record. The portions of land lying outside a fence or wall which adjoin Common Area or Common Maintenance Area may be used by the Association for such purposes. (b) In the event any improvement to a Lot encroaches upon the Common Area or Common Maintenance Area or any Common Area or Common Maintenance Area improvement encroaches upon any Lot as a result of the construction, reconstruction, repair, shifting, settlement or movement of any portion thereof, an easement for the encroachment and for its maintenance is hereby reserved for so long as the encroachment exists; provided, however, in no event shall an easement for encroachment be created in favor of an Owner or the Association if the encroachment occurred due to the willful misconduct of the Owner or the Association. In the event a structure on a Lot is partially or totally destroyed and then rebuilt or repaired, the minor encroachments over adjoining Common Area and Common Maintenance Area shall be permitted and there shall be easements for maintenance of the encroachments so long as they shall exist. "Improvement" as used in this subsection does not include a fence or wall (fences and walls are the subject of subsection (a) of this Section). (c) An easement is hereby reserved in favor of each Lot over adjoining Lots for the purpose of accommodating encroachments due to design, construction, engi- neering errors, errors in construction, settlement or shifting of the building, roof over- hangs, architectural or other appendants and drainage of water from roofs. There shall be easements for the maintenance of encroachments so long as they shall exist; provided, however, that no easement is created in favor of an Owner if the encroachment occurred due to the willful misconduct of the Owner. In the event a structure on any Lot is partially or totally destroyed and then rebuilt or repaired, the . San Pacifico Area /) • . -.-.'. • , 7/8/97 . -25- .'.'.'" minor encroachments over adjoining Lots shall be permitted and there shall be easements for maintenance of encroachments so long as they shall exist. Section 12.6. Special Responsibilities of Association. In the event improvements to be installed by Declarant to the Common Area have not been completed prior to the issuance by the California Department of Real Estate of a Final Subdivision Public Report covering a Phase of the Project, and in the further event the Association is the obligee under a bond to secure the obligation of Declarant to complete the improvements, then if the improvements have not been completed and a Notice of Completion filed within sixty (60) days after the completion date specified in the Planned Construction Statement appended to the bond, the Board shall consider and vote upon the question of whether or not to bring action to enforce the obligations under the bond. If the Association has given an extension in writing for the completion of any improvement, then the Board shall consider and vote on the question if the improvements have not been completed and a Notice of Completion filed within thirty (30) days after the expiration of the extension period. In the event the Board determines not to take action to enforce the obligations secured by the bond, or does not vote on the question as above provided, then, in either event, upon petition signed by Members representing five percent (5%) or more of the voting power of the Association (excluding the voting power of Declarant), the Board shall call a special meeting of the Members of the Association to consider the question of overriding the decision of the Board or of requiring the Board to take action on the question of enforcing the obligations secured by the bond. The meeting of Members shall be held not less than thirty-five (35) days nor more than forty-five (45) days following receipt of the petition. At the meeting, a vote of a majority of the voting power of Members of the Association, excluding the vote of Declarant, to take action to enforce the obligations under the bond shall be deemed to be the decision of the Association, and the Board shall thereafter implement the decision by initiating and pursuing appropriate action in the name of the Association. Section 12.7. Litigation. In the event of litigation arising out of or in connection with the Declaration, the prevailing party shall be entitled to receive costs of suit and such sum for attorney's fees as the Court deems reasonable. Section 12.8. Documents to be Provided to Prospective Purchaser. An Owner, other than Declarant, shall, as soon as practicable before transfer of title to the Owner's Lot, provide to the prospective purchaser the following: (a) A copy of the Articles, Bylaws, this Declaration and the rules and regulations adopted by the Board. (b) A copy of the most recent financial statements of the Association. (c) A true statement in writing from an authorized representative of the Association as to the amount of the Association's current regular and special assess- ments and fees as well as any assessments levied upon the Lot which are unpaid as of the date of the statement. The statement shall also include true information on late charges, interest and costs of collection which, as of the date of the statement, are or may be made a lien upon the Lot. San Pacifico Area A • ' 7/8/97 -26- (d) A statement setting forth any change in the Association's current regular and special assessments and fees which have been approved by the Board but have not become due and payable as of the date this statement is provided. Section 12.9. Limitation of Restrictions on Declarant. Declarant is undertaking the work of construction of residential dwellings and incidental improvements upon Phase 1 and the Annexable Property. The completion of that work, and the sale, rental and other disposal of dwellings is essential to the establishment and welfare of Phase 1 and the Annexable Property as a residential community. In order that the work may be completed and Phase 1 and the Annexable Property be established as a fully occupied residential community as rapidly as possible, nothing in this Declaration shall be understood or construed to: (a) Prevent Declarant, its contractors or subcontractors from doing on the Common Area, Common Maintenance Area or any Lot whatever is reasonably necessary or advisable in connection with the completion of the work, including access over Phase 1 or the Annexable Property; or (b) Prevent Declarant or its representatives from erecting, constructing and maintaining on any part or parts of Phase 1 or the Annexable Property such structures as may be reasonable and necessary for the conduct of its business of completing the work and establishing Phase 1 and the Annexable Property as a residential community and transferring Phase 1 and the Annexable Property in parcels by sale, lease or other- wise; or (c) Prevent Declarant from conducting on any part of Phase 1 or the Annexable Property its business of completing the work and of establishing a plan of ownership and of transferring Phase 1 or the Annexable Property by sale, lease or otherwise; or (d) Prevent Declarant from maintaining such signs, poles or flags on any of Phase 1 or the Annexable Property as may be necessary for the sale, lease or disposition thereof; provided, however, that the maintenance of any sign, pole or flag shall not unreasonably interfere with the use by any Owner of his or her Lot or the Common Area. The rights of Declarant provided in Subsections (a) through (d) above may be exercised during the period of time commencing when the Lots are first sold or offered for sale to the public and ending when all the Lots are sold and conveyed by Declarant to separate Owners, or seven (7) years following the date of conveyance of the first Lot from Declarant to a Retail Purchaser, whichever shall first occur. So long as Declarant, its successors and assigns, owns one or more of the Lots described herein. Declarant, its successors and assigns, shall be subject to the provisions of this Declaration. Declarant, in exercising its rights under this Section shall not unreasonably interfere with the use of the Common Area by any Owner. Section 12.10. Easement to Inspect and Test. Declarant reserves easements to enter any Lot, including the interior of the residence and the yard, to inspect those areas and to conduct destructive testing referred to in California CIVIL CODE § 1375(d). However, Declarant shall notify the Owner of the Lot of at least three alternative dates and times when such; }: ::;^'w San Pacifico Area A y - 7/8/97 •-'. -27- inspection can take place (the earliest of which shall not be less than ten (10) days after the notification is given) and Declarant shall give the Owner the opportunity to specify which date and time is acceptable to the Owner. Should the Owner not respond affirmatively with respect to one of the dates and times within five (5) days, then Declarant may decide which of the dates and times the inspection and testing shall take place and so notify the Owner. Alternatively, Declarant may seek a judicial order allowing such inspection and testing to take place. Declarant shall be entitled to its reasonably incurred attorney's fees and be deemed the "prevailing party" should such a court order be sought and obtained. Declarant shall be obligated to fully repair any damage caused by any such destructive testing. IN WITNESS WHEREOF, the undersigned, being Declarant herein, has executed this instrument as of the date first hereinabove written. POINSETTIA HOMEBUILDING PARTNERS, L.P., a California Limited Partnership By: COLRICH COMMUNITIES, INC., a California corporation, General Partner By. Title By. Title_ STATE OF ) ) ss. COUNTY OF ) On , 19 , before me, Notary Public in and for said State, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature j San Pacifico Area A 7/8/97 -28- EXHIBIT "A" Phase 1 Lots 21 through 27, inclusive, 29 through 36, inclusive, and 39 of CARLSBAD TRACT 94-04 POINSETTIA SHORES AREA A-1, according to Map thereof No. , filed with the County Recorder of San Diego County, California on , 1997; and Lots 6 through 12, inclusive, 30 through 34, inclusive, and 52 of CARLSBAD TRACT 94-05 POINSETTIA SHORES AREA A-2, according to Map thereof No. , filed with the County Recorder of San Diego County, California on , 1997. Annexable Property Lots 1 through 20, inclusive, 28, 37, 38 and 40 of CARLSBAD TRACT 94-04 POINSETTIA SHORES AREA A-1, according to Map thereof No. , filed with the County Recorder of San Diego County, California on , 1997; Lots 1 through 5, inclusive, 13 through 29, inclusive, and 35 through 51, inclusive, of CARLSBAD TRACT 94-04 POINSETTIA SHORES AREA A-2 according to Map thereof No. , filed with the County Recorder of San Diego County, California on , 1997; Lots 1 through 52, inclusive, of CARLSBAD TRACT 94-04 POINSETTIA SHORES AREA A-3, according to Map thereof No. , filed with the County Recorder of San Diego County, California on , 1997; and Lots 1 through 65, inclusive, of CARLSBAD TRACT 94-04 POINSETTIA SHORES AREA A-4, according to Map thereof No. , filed with the County Recorder of San Diego County, California on , 1997. San Pacifico Area A 7/8/97 * t "••" '' ' SUBORDINATION AGREEMENT , being the beneficiary under that certain deed of trust recorded in the Office of the County Recorder of San Diego County, California on as Document No. , hereby declares that the lien and charge of the deed of trust are and shall be subordinate and inferior to the Declaration of Restrictions to which this Subordination Agreement is attached. By. Title By. Title STATE OF ) )ss. COUNTY OF ) On , 19 , before me, _ Notary Public in and for said State, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature San Pacifico Area A 7/8/97