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HomeMy WebLinkAboutItem #05 Plat Approval for Crestwood Heights - Ocoee Commons PUD AGENDA ITEM COVER SHEET Meeting Date: February 7,2006 Item # 5 ~t; 4fi Ntt/ ---. Subject: Plat Approval for Crestwood Heights - Ocoee Commons PUD Contact Name: Contact Number: Ryan P. Howard, E.!. (407) 905-3100 ext. 1506 Reviewed By: Department Director: City Manager: Background Summary: This plat is for Crestwood Heights - Ocoee Commons PUD, which consists of a 97-unit townhouse development with its associated amenities. Issue: The Engineering Department requests that the Mayor and City Commission approve the plat of Crestwood Heights residential development. Recommendations City Staff recommends approval of the plat of Crestwood Heights as submitted and authorize the Mayor and City Clerk to sign the plat. Attachments: Mylar Plat with 10 copies. Financial Impact: Type of Item: o Public Hearing o Ordinance First Reading o Ordinance First Reading o Resolution [8J Commission Approval o Discussion & Direction For Clerk's DeDf Use: o Consent Agenda o Public Hearing o Regular Agenda D Original Document/Contract Attached for Execution by City Clerk D Original Document/Contract Held by Department for Execution Reviewed by City Attorney Reviewed by Finance Dept. Reviewed by (Planning) o N/A IZI N/A o N/A City ManalZer Robert Frank Commissioners Gary Hood, District 1 Scott Anderson, District 2 Rusty Johnson, District 3 Nancy J. Parker, District 4 Mayor S. Scott VanderlZrift STAFF REPORT TO: The Honorable Mayor and City Commissioners Ryan P. Howard,E.I. ~#--' FROM: DATE: February 7, 2006 RE: Crestwood Heights Plat (Ocoee Commons PUD) ISSUE The Engineering Department requests that the Mayor and City Commission approve the Crestwood Heights residential development plat. A copy of the letter of credit, Special Warranty Deed, and Declaration of Covenants, Conditions and Restrictions have been provided for reference. BACKGROUND/DISCUSSION Crestwood Heights residential development is located within Ocoee Commons PUD, at the northeast corner of State Road 50 (Colonial Drive) and Blackwood Avenue. This plat is for 14.44 acres of a 97- unit multi-family townhouse development and the associated amenities. The storm water management system was previously constructed as part of Ocoee Commons PUD master development. All required documentation pertaining to the platting of this development has been reviewed and approved by City staff. 1: SUNTRUST .. i....J :\; '"(' r;:'.;.j ::::: 'r ._ i.~\ )\,; I) E; \/ p'~ r) :,../ TeE::: ~"".l i...) [vi. :t::{ E~ F t..) ':~~;' C:, 1 .of::: ;~:'~, '~l' <.J {::'i i\(: i..,) (2'! 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I". ~../ ,! ,.., 1",,/.... : 1\)0" SB-'9()8738-'OOC)lr l~iSl)Er) I~l YOl.JR FAVOR, BY ~! A~iD l' BAI\~~(~ If::' YlJtJ A!~i~ t)l~ABi_.!~ 'TO Cf]]v!l:l!_Y w:r"fH 'THE TERlvi~3 l~I",,!~ASE COj1~Yi~)I~]:CA'T'I~ WITH YOUR CUS10MER TO HAVE THE CREDIT AMENDED. THIS LETTER UF CREDIT IS SUBJECT TO THE CONDITION THAT DOCUMENTS ::c i'-'..i 'f) I C (:'1 T ::~: ;.....IC; -r-(] (J P F=- F:(] j'\-'l (:', ;\1\/ t.):\ E; 1\ ~::) i:'::,I\I(: 1 I tJ(\1E:r) (~: C:J t)~\'l"T. P \/ / F'E: F~::::;[}r.,,~~~~; J: }'::: 1~~ !\.j"l' ;,:~" 1:::: :D CJ 1\.1 T l"'! F.:: C)" F ;: j; "C ,! ~:) Pi::: (:.: I {,~ l~. L, \/ :0 E: E~; ::c C; j'-,l f:::" 'r 1:::: L' 1\,j j~:'! 'r I ~] '1\\ f::':'! L., ' :::::; :~:::. ;' ..: ' r,:.; 1. '. :::} I,:::: 1-<' F::D F ~:~ h ~:; C) 1",..1 ~:::; 1; L_. 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C}R]:(~:I!\!AL Li~.l-Tj~R OF (:i~~~D:I:'r/AiviEJ~I)lvIEN'r(~3) ~i~.)s.r A(~C[)~iif~AI~Y 'T'~{l~~: I:)(J(:;l)~IE~:i\I"f.S I=OR F)REE;ENTATION'I IF ANY AivIEND11E:NT(S) ARE NOMf' A(:~(:I~~:~'rr~:D~ YOUR SIGI~ED ~3'T'A"f"I~lvIE~~~'1- 'l"[] .rHI~; EFF~E(~'l- IS RE()ljI!:~E~I)n DOCUMENTS MUST BE PRESENTED AT OllR OFFICE DURING REGULAR BUSINESS HOURS: HUN-fRUST INTERNATIONAL DIVISION ATTN: LETTER OF CREDIT :OE:~:P{~IP'TI":IE:I\I-r' ~:'?,~~) P(:IF~i'< PL.,f:ICE~:-- :;, /~'Tl.~ F'L.,(](]F~ r ~\1C ::::-~'?'()'7 f~'!'TL.PI~\frr{:! '.. C;E~CJ~?(~:iI{:} ~:"~: () :::.:~ () ::3 L [)~)R (:~!AR(~E~S ARl~ i::(:)!~ APF)i...:I:(::AI\j"['g ! Ii t::_ f.YT 'U;j C H E1) u:::r'r [:F~ 0 F C r-:~.EIH T I-WI E;; F3 [B\l :U:') E; U ET) ~.n---i D E: F: E=': I T I--'! E:::H INTERNATIONAL STANDBY PRACTICES. ISP98. OR THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS INTERNA1IONAL CHAMBER OF COMMERCE. UCP500. TO DETERMINE WHICH RULES APPLY. SEE ATTACHED. 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(" F) ~~ f~':!}) 1'1\ i.... !.,) j"-:: :: i'" P..il):::::;;; ,..-.... ." , ; :. . i'" j ;" '! .; ,...." ~ I Prepared By / Return To: Nichol Bolander Morrison Homes 151 Southhall Lane, Suite 200 Maitland, FL 32751 Property Appraisers Parcel Identification Number: WARRANTY DEED THIS WARRANTY DEED made and executed this )3 day of./JR.,(l , 2005 by MORRISON HOMES, INC., a Delaware Corporation, hereinafter called the "Grantor," whose post office address is 151 Southhall Lane, Suite 200, Maitland, FL 32751, to CRESTWOOD HEIGHTS TOWNHOMES OWNERS ASSOCIATION, INC., whose post office address is, 151 Southhall Lane, Suite 200, Maitland, FL 32751, hereinafter called the "Grantee": WITNESSETH THA T the Grantor, for and in consideration of the sum of TEN DOLLARS ($10.00) and other valuable considerations, receipt whereof is hereby acknowledged, hereby grants, bargains, sells, aliens, remises, releases, conveys and confinns unto the Grantee, all that certain land situate in Seminole County, Florida, viz: Tracts "A, B, C and D" (common areas and facilities) and TRACT "E" (private roadways) of CRESTWOOD HEIGHTS, according to the plat thereof, as recorded in Plat Book _, pages , of the Public Records of Orange County, Florida. TOGETHER with all the tenements, hereditaments and appurtenances thereto belonging or is anywise appertaining. TO HAVE TO AND TO HOLD, the same in fee simple forever. AND the Grantor does hereby covenant with and warrant to the Grantee that the Grantor is lawfully seized of the Subject Property in fee simple; that the Grantor has good right and lawful authority to sell and convey the Property; and that the Grantor fully warrants the title to the Property and will defend the same against the lawful claims of all persons claiming by, through or under the Grantor, but against none other. IN WITNESS WHEREOF, the said Grantor has signed and sealed these presents the day and year first above written. Morrison Homes, A Delaware Corporation /7 /~ttid1i;{;(klQ_ .. ...... / ~lint' ame (Xl~ ~. ';~ ~'A! ~ Name: Leslie G. Peters Title: Division President f ,/ L./ STATE OF FLORIDA COUNTY OF ORANGE The foregoing instrument was acknowledged before me thisl3 day oflJe~. , 2005, by LESLIE G. PETERS, AS DIVISION PRESIDENT of Morrison Homes, Del ware corp ation. She is personally known to me and did/not take an oath. (SEAL) OTARY SIGNATURE PRINT NAME:.fJ, c.he;/ ~O Ian de.. r COMMISSION EXPIRES: NICHOL BOLANDER MY COMMISSION # DO 200376 EXPIRES: July 31, 2007 Bonded Thru Notary Public Underwriters Prepared by and return to: Jesse E. Graham. Sr., Esq. Graham, Builder, Jones. Pratt & Marks, LLP 369 N. New York A venue, Third Floor P.O. Drawer] 690 Winter Park, Florida 32790 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR CRESTWOOD HEIGHTS THIS DECLARATION, made and executed as ofthe~ day of.()M.l J ,2005, by MORRISON HOMES, INC., a Delaware corporation, whose mailing address is 151 Southhall Lane, Suite 200, Maitland, Florida 32751, hereinafter referred to a "Declarant." WHEREAS, Declarant is the owner of certain property in the City of Ocoee, County of Orange, State of Florida (sometimes hereafter referred to as the "City"), which is more particularly described in the schedule attached hereto as Exhibit "A." NOlv, THEREFORE, Declarant hereby declares that all of the real property described above shall be held, sold, conveyed, leased, encumbered and otherwise dealt with subject to the easements, restrictions, covenants, and conditions, reservations, charges and lien rights hereinafter set forth, all of which are for the purpose of protecting the value, desirability and attractiveness of, and which shall run with, said real property and be binding upon, and inure to the benefit of, all parties having or acquiring any right, title or interest in the described properties or any part thereof, their heirs, successors and assigns. ARTICLE I DEFINITIONS Section 1.1. Defined Terms. The following words and phrases, when used in this Declaration or any supplemental declaration hereto, shall have the following meanings: (a) "Additional Property" shall mean real property, other than that described in the schedule attached hereto as Exhibit "A." which may in the future be brought within the jurisdiction of the Association and this Declaration by amendment or supplement to this Declaration. U:lefernandezICLIENTS\Morrison Homes15667-518 (Crestwood Commons)\Declaration-v.l0 (Crestwood Heights).doc (b) "Architectural Review Committee" and "ARC" shall refer to the committee established and described in Article V hereof. (c ) "Articles" shall mean the Articles of Incorporation of the Association as they may exist from time to time. (d) "Association" shall mean CRESTWOOD HEIGHTS TOWNHOMES OWNERS ASSOCIATION, INC., a Florida not for profit corporation, its successors and assigns. The initial Articles of Incorporation of the Association are attached hereto as Exhibit "B" and incorporated herein by reference. (e) "Board" shall mean the Board of Directors of the Association. (f) "By-Laws" shall mean the B y- Laws of the Association as they may exist from time to time. The initial By-Laws are attached hereto as Exhibit "C." and incorporated herein by reference. (g) "Common Expenses" shall mean expenditures for maintenance, operation and other services required or authorized to be performed by the Association with respect to the Common Area, Surface Water Management System or otherwise. (h) "Common Area" shall mean and refer to those areas of land shown on any recorded subdivision plat of the Properties intended to be devoted to the common use and enjoyment of the owners of the Properties; all real property, including any improvements thereon, owned by the Association for the common use and enjoyment of the Owners; any real property subsequently deeded by the Declarant to the Association for the common use and enjoyment of the Owners; the Surface Water Management System, all stormwater detention/retention areas (which includes Tracts G2 appearing on the Plan) as hereafter defined; and walls and entry features; and all entitlements extended to the Property pursuant to the Declaration of Easements, Covenants, and Restrictions recorded in O.R. Book"N91v, Pag~, Public Records of Orange County, Florida, regarding Tract P and the Private Easement (each are shown and depicted on the Plat of Ocoee Commons PUD, recorded Plat Bookl,ml, Pages Q;;l.. through ~, inclusive, Public Records of Orange County, Florida. (i) "CRESTWOOD HEIGHTS" shall mean the property described in the schedule attached hereto as Exhibit "A" which is to be platted as a portion of Ocoee Commons PUD according to the plat thereof which is to be recorded in the Public Records of Orange County, Florida, together with any Additional Property which may be made subject to the terms of this Declaration in the future pursuant to the terms hereof. (j) "Declarant" shall mean MORRISON HOMES, INC., a Delaware corporation. Wherever the term Declarant is used in this Declaration, the Articles or By-Laws, it shall be deemed to include the successors and assigns of the Declarant, but only to the extent U:\efemandez\CLIENTS\Morrison Homes\5667 -518 (Crestwood Commons)\Declaration-v.l 0 (Crestwood Heights).doc 2 specifically so identified by an instrument in writing executed and recorded by the Declarant and shall not include an Owner who has purchased a Lot from the Declarant. (k) "Declaration" shall mean this Declaration of Covenants, Conditions and Restrictions as it may, from time to time, be amended or supplemented. (1) "Initial Assessment" shall mean the one time assessment collected from an initial purchaser of a Lot upon which Lot a single-family Residence has been constructed from a Builder as provided for in Section 5.9 hereafter. (m) "Institutional Lender" shall mean the owner and holder of a mortgage encumbering a Lot when such owner and holder shall be a bank, savings bank, mortgage company, life insurance company, federal or state savings and loan association, an agency of the United States government, public or private pension fund, the Veteran's Administration, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Housing Administration, a credit union, real estate or mortgage investment trust, or other lender generally recognized in the community as an institutionallender. (n) "Lot" shall mean any parcel of land shown on any recorded subdivision map or plat of the Property upon which shall be located a Residence. (0) "Maintenance" shall mean, but not be limited to, cleanup, landscaping and grounds care, and upkeep of recreational amenities, the Surface Water Management System and other facilities within the Common Area, and the repair, Maintenance and upkeep of the entry features. The term "Maintenance," as applied to the Surface Water Management System, shall mean the exercise of practices which allow the system to provide drainage, water storage, conveyance or other surface water or stormwater management capabilities as permitted by the St. Johns River Water Management District, including (i) checking the inlets for accumulation of debris and sedimentation; (ii) checking for pond side slope stability by replacing dead sod and, after mowing operations, checking for disturbed side banks; and (iii) cleaning sediment out of mitered end sections (inflow to ponds). Any repair or reconstruction of the Surface Water Management System shall be as permitted, or if modified, then only as approved by the St. Johns River Water Management District. (p) "Member" shall mean all Owners who are Members of the Association as provided in this Declaration. (q) "Notice" shall mean delivery to the person or entity who appears as Owner in the records of the Association of any document by mail with postage prepaid to the last known address reflected in the records of the Association. Notice to one of two or more co-owners of a Lot shall constitute notice to all Owners of such Lot. (r) "Owner" shall mean the owner as shown on the records of the Association (whether it be the Declarant, one or more persons, firms or legal entities) of fee simple title to any U:\efemandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.l0 (Crestwood Heights).doc 3 Lot located within the Property or any Additional Property. Owner shall not mean the holder of any mortgage or lien unless and until such holder has acquired title pursuant to foreclosure or a proceeding or deed in lieu of foreclosure nor shall the term include any lessee or tenant of any Owner. (s) "Plan" shall mean any recorded plat of any portion of the Property and Additional Property for the development of CRESTWOOD HEIGHTS as recorded in Plat Book , Page of the Public Records of Orange County, Florida. (t) "Private Easement" shall mean and refer to the Private Cross-Access Drainage and Utility Easement and Pedestrian Access Easement as depicted on the Plan. (u) "Property" shall mean the real property described in Exhibit "A" attached hereto and, when added in accordance with the terms and conditions hereof, and any Additional Property which may be made subject to this Declaration in the manner provided herein. (v) "Residence" shall mean and refer to any single-family residential building constructed on a Lot for which a certificate of occupancy has been duly issued. (w) "Streets" shall mean the areas designated for vehicular traffic and more particularly known as Tract E on the Plan, which area is not included in a Lot. (x) "Surface Water Management System" shall mean that portion of the Property constituting a system designed and constructed or implemented to control discharges which are necessitated by rainfall events, incorporating methods to collect, convey, store, absorb, inhibit, treat, use or reuse water to prevent or reduce flooding, overdrainage, environmental degradation, and water pollution or otherwise affect the quantity and quality of discharges from the system, as permitted pursuant to Chapters 40C-4, 40C-40, or 40C-42, Florida Administrative Code, the Maintenance of which shall be the resB-o_nsibility of the Association in accordance with the Surface WaterManagementPermitNo.Y{)-{)4S-,;?~(o5()- 5, previously issued by St. Johns River Water Management District, as amended from time to time, insofar as the Permit pertains to the Property within the jurisdiction of the Association. (y) "Conservation Area" or "Conservation Easement Area" shall mean and refer to all such Property so designated upon any recorded Subdivision Plat or Plats of the Property. The Declarant reserves the right to add lands to the Conservation Easement Area. Section 1.2. Interpretation. Unless the context otherwise requires, the use herein of the singular shall include the plural and vice versa; the use of one gender shall include all genders; and the use of the term "including" shall mean "including, without limitation". This Declaration shall be liberally construed in favor of the party seeking to enforce the provisions hereof to effectuate the purpose of protecting and enhancing the value, marketability, and desirability of the Properties by providing a common plan for the development and preservation thereof. The headings used herein U:\efemandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.l0 (Crestwood Heights).doc 4 are for indexing purposes only and shall not be used as a means of interpreting or construing the substantive provisions hereof. ARTICLE II EASEMENTS. PROPERTY RIGHTS AND MAINTENANCE OBLIGATIONS Section 2.1. Utilitv Easements. The Declarant reserves the right to grant easements, from time to time, to any public or private utility or governmental authority providing utility and other services within the Property over, under, upon and through the Property. Any such easement granted by the Declarant pursuant hereto shall be given for the purpose of maintaining, installing, repairing, altering and operating sewer lines, irrigation lines, water lines, lift stations, effluent disposal lines, pipes, wires, power lines, telephone service, gas lines, cable television service, alarm systems, and like machinery, equipment and apparatus appurtenant to all of the forgoing as may be necessary or desirable for the installation and Maintenance of utilities and providing services to Owners, the Property and the Common Area. All such easements shall be of such size, width and location as the Declarant, in its discretion, deems appropriate; provided, however, such discretion will be exercised in such a manner so as to not unreasonably interfere with the use of any improvements which are now, or may hereafter be, located upon the Property. Section 2.2. Owners' Easement of En;ovment. Except as to (i) the Surface Water Management System which shall be operated and maintained by the Association as required by the St. Johns River Water Management District, (ii) the stormwater detention/retention areas identified in Section 1.1 (h) above, (iii) drainage and utility easements, if any, dedicated in the CRESTWOOD HEIGHTS Plan to the Public and The City of Ocoee, Florida, and (iv) the entitlements for the Property regarding Tract P as referred to in Section 1.1 (h) above, every Owner shall have a nonexclusive right and easement of enjoyment in and to the Common Areas, if any, which shall be appurtenant to and shall pass with the title to every Lot. Section 2.3. Convevance of Common Area. At the time of recording of the Plan for CRESTWOOD HEIGHTS, all tracts which are to be owned and maintained by the Homeowners Association shall be conveyed by the Declarant to the Homeowners Association by warranty deed and from and after such conveyance and recording of the same in the Public Records of Orange County, Florida. Section 2.4. Streets and Private Easement. Easements and Property Rights in the Streets within the Property shall be governed by the provisions of Article VI herein. All Owners have the right to use the Private Easement pursuant to and in accordance with the provisions of the Declaration of Easements, Covenants and Restrictions recorded in Official Records Bookl~q~, at Page 12.l.., Public Records of Orange County, Florida. Section 2.5. Surface Water Management Svstem. The Association and Declarant shall have a perpetual and non-exclusive easement over all areas of the Surface Water Management System for access to operate, maintain, or repair the same. By this easement, the Association and Declarant U:\efernandez\CLIENTS\Morrison Homes\5667 -518 (Crestwood Commons)\DecJaration-v.lO (Crestwood Heights).doc 5 shall have the right to enter upon any portion of any Lot which is a part of the Surface Water Management System, at a reasonable time and in a reasonable manner, to operate, maintain, or repair the Surface Water Management System as required by the St. Johns River Water Management District Permit described above in Section 1.1 (x). Additionally, the Association and Declarant shall have a perpetual non-exclusive easement for drainage over the entire Surface Water Management System. No person shall alter the drainage flow of the Surface Water Management System, including buffer areas or swales, without the prior written approval of the St. Johns River Water Management District. Maintenance of the Surface Water Management System shall include at a minimum the requirements set forth in Section 1.1 (0). Surface Water Management System shall include those portions of the Property designated on the Plan as retention areas or drainage easements (collectively "stormwater detention/retention areas") or by Declarant for irrigation, drainage or beautification purposes in a manner consistent with the original design thereof by the Declarant and in accordance with the requirements of applicable governmental authorities. The stormwater detention/retention areas shown on the Plan, any plat or conveyance shall be used for the construction, repair and Maintenance of drainage facilities including, but not limited to, canals, pumps, pipes, inlets and outfall structures and all necessary appurtenances thereto. In addition to the consent required above from the St. Johns River Water Management District, the location of the drainage pattern may not be modified or relocated without the prior written consent of the Declarant and any other applicable governmental authority. In the event of a dissolution or termination of the Association, the assets of the Association and the responsibility for the operation and maintenance of the Surface Water Management System must be transferred as provided for in Article XI of the Articles. In the event dissolution occurs and the provision of Article XI of the Articles is not complied with or is unacceptable to the City or St. Johns River Water Management District, then the City and St. Johns River Water Management District may continue to levy and collect assessments and impose liens with respect to maintenance of the surface water management system notwithstanding the dissolution of the Association. The City of Ocoee shall have the right, but not the obligation, to maintain and repair the Surface Water Management System and, further, to obtain reimbursement form the Association or from the Declarant if (i) turnover of control to the Members of the Association has not occurred, or (ii) if the Declarant is still responsible for Maintenance of the Surface Water Management System. In the event the Association is dissolved without a transfer of the administration, and Maintenance of the Surface Water Management System is not transferred to another not-for-profit corporation or dedicated to an appropriate governmental agency agreeing to accept such conveyance or dedication, then the City of Ocoee may continue to levy and collect assessments and impose liens with respect to the administration and Maintenance of the Surface Water Management System notwithstanding that the Association has been dissolved. U:\efemandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.lO (Crestwood Heights).doc 6 At the time of turnover of the Association by Declarant, Declarant shall deliver to the new board of directors of the Association the maintenance plan for the Surface Water Management System and certification from a Florida-registered engineer that the Surface Water Management System is functioning in accordance with all plans and permits approved by the City of Ocoee. To the extent that such engineer's certification indicates any corrective action is required, Declarant shall be required to diligently undertake such corrective action at the Declarant's sole cost and expense and if necessary, to post a bond, or other applicable security, with the Association for the estimated cost of such corrective action. Section 2.6. Maintenance of Common Areas bv Declarant. Until such time as the Class B membership is converted to Class A as provided for hereinafter, and any provisions herein to the contrary notwithstanding, the Declarant shall perform the Maintenance of Common Areas and sidewalks (exclusive of the Private Access Easement because its Maintenance is provided for in the Declaration of Easements, Covenants and Restrictions recorded in Official Records Book731b.., at pagelZZ, Public Records of Orange County, Florida) at its sole cost and expense. Thereafter, the Association shall perform the Maintenance of the Common Areas and sidewalks in accordance with the provisions of this Declaration. During the time specified herein that the Declarant shall be responsible for Maintenance of the Streets, Common Areas and sidewalks, the Declarant may expend monies in the routine-infrastructure-Maintenance account for such Maintenance and repairs with the prior written consent of the Board of Directors of the Association. Insufficiency of funds in the aforesaid account shall not act to relieve the Declarant of any responsibility to maintain and repair the Streets, Common Areas and sidewalks properly prior to conversion of the Class B Membership to Class A Membership and/or turnover of the Streets and Common Areas to the Association. Notwithstanding the conversion of the Class B membership to Class A membership, the Declarant shall remain responsible for the maintenance of the Surface Water Management System, including all stormwater detention/retention areas, until such times as: (i) the entire Surface Water Management System is constructed and appropriate certificates of completion have issued by both the City and St. Johns River Water Management District, (ii) the stormwater detention/retention areas intended to be conveyed to the Association have in fact been conveyed to the Association, (iii) the Association is designated as the maintenance entity on the records of the St. Johns River Water Management District and all transfer records required by the St. Johns River Water Management District have been executed and accepted by the St. Johns River Water Management District, (iv) the City has been provided with a copy of the Declarant's proposed maintenance plan with respect to the Surface Water Management System, and (v) the City has been provided with a written statement from the Association acknowledging receipt of the Declarant's proposed maintenance plan with respect to the Surface Water Management System and that the Association is responsible for the maintenance of the Surface Water Management System. In the event of a dissolution or termination of the Association, the assets of the Association and the responsibility for the operation and maintenance of the Common Areas must be transferred as provided for in Article XI of the Articles. In the event dissolution occurs and the provision of Article XI of the Articles is not complied with or is unacceptable to the City then the City may U:\efemandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.10 (Crestwood Heights).doc 7 continue to levy and collect assessments and impose liens with respect to maintenance of the Common Areas notwithstanding the dissolution of the Association. Section 2.7. Initial Engineer's Report. No earlier than one hundred eighty (180) days before turnover of the Association and/or transfer of control of the subdivision infrastructure, the Association must retain the services of a Florida-registered engineer experienced in subdivision construction (other than the engineer of record for the subdivision as of the date of the City's approval of the subdivision infrastructure construction plans, and engineers who are principals of, employed by, or contractors of the same firm as the engineer of record) to inspect the Streets, sidewalks and Surface Water Management System, including stormwater detention/retention areas, and prepare a report (the "Engineer's Report") certifying that the Surface Water Management System is functioning in accordance with all approved plans and permits, and recommending the amount of scheduled Maintenance and unscheduled repair that likely will be needed each year for the Streets, sidewalks and Surface Water Management System (including stormwater detention/retention areas), in accordance with standards that may be established and revised from time to time by the City engineer or his or her designee, which recommends the amounts of money that should be deposited each year in the routine-infrastructure-Maintenance account, and determining what repairs, if any, are needed prior to turnover of the Association. The Engineer's Report shall be signed and sealed by the engineer. The Association shall pay the cost of this initial Engineer's Report, and the Association may pay such cost from the routine- infrastructure-Maintenance account. A copy of the initial Engineer's Report shall be provided to all Owners of Lots, blocks and Tracts and to the City engineer within fifteen (15) days after it is completed. Any needed repairs or replacements identified by the Engineer's Report shall be completed by the Declarant at the Declarant's sole expense, prior to the either the Declarant's turnover of the Association to the Owners of the subdivision or transfer of control of the subdivision infrastructure to the Association, whichever occurs first. Additionally, the Declarant shall be required to post a cash bond with the Association for the estimated cost of such repairs or replacements to the Surface Water Management System only. If turnover of the Association and/or transfer of control of the subdivision infrastructure occurs and the foregoing requirements have not been fulfilled, the rights of the Association, any of its Members and any and all Owners of the land in the subdivision to enforce these requirements against the Declarant shall survive the turnover of the Association, with the prevailing party to be entitled to recover of its attorneys' fees and costs. Section 2.8. Subsequent Engineer's Report. Following turnover of control of the Association or turnover of control of the subdivision infrastructure: U:\efemandez\CLlENTS\Morrison Homes\5667 -518 (Crestwood Commons)\Dec1aration-v.l 0 (Crestwood Heights).doc 8 (a) The Association shall obtain an inspection of the Streets, sidewalks and Surface Water Management System, including stormwater detention/retention areas, by a Florida registered engineer experienced in subdivision construction no less frequently than once every three years after the initial engineer's inspection; (b) Using good engineering practices, and in accordance with standards that may be established and revised from time to time by the City engineer or his or her designee, or in accordance with such other standards as may be adopted from time to time by the Association, or in accordance with such standards as the Association's engineer may determine to be appropriate, the inspection shall determine the level of Maintenance and repair (both scheduled and unscheduled) needed, the amounts of funding needed each year for the next three years in the routine- infrastructure-Maintenance account to pay for such Maintenance and repair, and any repairs then needed; (c) The inspection shall be in a written report format; (d) A copy of each subsequent Engineer's Report shall be provided to each Owner of property in the subdivision within fifteen (15) days of completion of each such Report; and (e) Within one hundred eighty (180) days of receipt of each tri-annual Engineer's Report, the Association shall complete all remedial work identified and recommended by the Engineer. Section 2.9. Tract G2 Stormwater Drainage Improvements. The Declarant, at Declarant's sole expense, shall construct, in accordance with all applicable law, rules and regulations, a stormwater/detention pond and related stormwater drainage improvements (such pond and related improvements hereinafter collectively referred to as the "Tract G2 Stormwater Drainage Improvements") upon Tract G2, which shall serve and benefit Lot C with respect to a certain portion of stormwater associated with Lot C (the "Lot C Drainage") and Tract K with respect to a certain portion of stormwater associated with Tract K (the "Tract K Drainage"). It is the intention of Declarant that the Owner of Tract K shall not be required to construct facilities to accommodate stormwater from such land, other than necessary underground pipes and control and other structures (including, as reasonably necessary, upon Tract G2) necessary to carry such stormwater from such land to the Tract G2 Stormwater Drainage Improvements (the "Facilities"), which Facilities shall be constructed and maintained at the sole expense of the Owner of Tract K. The Declarant shall construct like Facilities for Lot C, which Facilities, and the Tract G2 Stormwater Drainage Improvements, and Tract G2 retention/detention pond, shall be maintained by the Association, and Declarant, as applicable, as part of the Surface Water Management System. In furtherance thereof, the Declarant hereby declares, establishes, grants and conveys for the benefit of Lot C and Tract K, a perpetual non-exclusive easement over and across Tract G2 for the purpose of providing pre-treatment and attenuation of stormwater from Lot C and Tract K by means of the Tract G2 Stormwater Drainage Improvements, and such temporary construction easements as U:\efemandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.l0 (Crestwood Heights).doc 9 are from time to time reasonably necessary for the construction and maintenance of the Facilities, the foregoing easements subject to the terms and conditions more particularly described and set forth in this Declaration. Declarant expressly reserves the right to reconfigure Tract G2 and the Tract G2 Stormwater Drainage hnprovements from time to time in any manner that Declarant deems necessary, provided such reconfiguration has received all required governmental and quasi governmental approvals and permits, and shall not materially adverse effect the continued retention/detention of stormwater from Lot C and Tract K. The foregoing easements are subject to the following covenants and conditions: (a) No Owner of lands benefited by the easements established herein may discharge hazardous waste, contaminants, or other gasoline products or other noxious liquids into the Tract G2 Stormwater Drainage hnprovements. Any Owner who violates this provision shall indemnify the Declarant and all others entitled to the use of the Tract G2 and/or the Tract G2 Stormwater Drainage hnprovements harmless from any and all causes of action, losses, damages, claims and costs that may be incurred by any or all of them as a result of said violation. (b) Prior to construction of the Facilities and to connecting with the Tract G2 Stormwater Drainage hnprovements, the Owner of Tract K shall submit construction and drainage plans to the Declarant for review and approval, which approval shall not be unreasonably withheld, conditioned or delayed. All construction (including, without limitation, location of the Facilities) shall comply with permitting requirements of all applicable governmental and quasi governmental authorities and such reasonable requirements as are imposed by Declarant. Such Owners shall indemnify and hold the Declarant and all others entitled to use the Tract G2 and/or the Tract G2 Stormwater Drainage hnprovements harmless from any and all causes of action, losses, damages, claims and cost that may be incurred by any or all of them as a result of the violation of this restriction by such Owner. The Declarant, the St. John's River Water Management District, and/or the City of Ocoee shall have the perpetual right to enforce (but shall not be obligated to enforce), by proceeding at law or in equity, the provisions contained in this Declaration which relate to the Tract G2 Stormwater Drainage Improvements. Failure by Declarant, the St. John's River Water Management District, or the City of Ocoee to enforce said provisions in one (1) or more instances shall in no event be deemed a waiver of the right to do so thereafter. ARTICLE III RULES AND REGULATIONS Section 3.1. Residential Use. Each Lot shall be used for single-family residential purposes only, and no trade or business of any kind may be carried on therein or thereon; provided, however, the lease or rental of a Residence shall not constitute a violation of this covenant. U:\efemandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Dec1aration-v.lO (Crestwood Heights).doc 10 Section 3.2. Antennas. No television antennas may be erected and maintained on a Lot if cable television is available to serve the Properties. If cable television is not available, a single television antenna may be erected and maintained solely within the attic area and not otherwise visible from the exterior, which antenna shall be removed within three (3) months from the date of availability of cable television. Satellite dishes, one meter or greater in diameter, including support structures appurtenant thereto, which are no higher than four (4) feet from ground level may be installed in rear yards so long as the entire rear yard is fenced in the manner provided herein. A satellite dish which is less than one meter in diameter shall be installed so that the same is not visible from the street, provided, however, that this restriction shall not apply if installation in a location visible from the street is necessary in order for reception to be received by such satellite dish. Section 3.3. Clothes Drying Area. No portion of any Lot shall be used as a drying or hanging area for laundry of any kind. Section 3.4. Prohibition of Damage and Certain Activities. Nothing shall be done or kept on any Lot or in the Common Area which would be in violation of this Declaration or any statute, rule, ordinance, regulation, permit or other validly imposed requirement of any governmental body. No damage to, or waste of, the Common Area shall be committed by any Owner or any Tenant or invitee of any Owner; and each Owner shall indemnify and hold the Association, the Declarant, and other Owners harmless against all loss resulting from any such damage or waste caused by him or his Tenants or invitees, to the Association or other Owners. No noxious, destructive or offensive activity shall be permitted on any Lot or in the Common Area, nor shall anything be done therein which may be or may become an annoyance or nuisance to any other Owner or to any other person at any time lawfully residing on the Property. Section 3.5. Signs Prohibited. No sign on any kind shall be displayed to the public view on any Lot or the Common Area without the prior written consent of the Association, except customary name and address signs and no more than one (1) lawn sign of not more than four and one-half (4 1/2) square feet in size (or such lesser amount as may be required by applicable governmental regulations) advertising the property for sale (as opposed to signs indicating availability for rental or lease, which signs are expressly prohibited) provided the same are otherwise in accordance with rules and regulations adopted by the Association. Section 3.6. Parking. All automobiles, SUVs, trucks and all other vehicles of every type shall be parked in garages and designated off-street parking areas only; no parking shall be permitted on the streets. Further, the Association may promulgate further rules and regulations affecting the parking of any vehicles which appear in the best interest of all owners and any such regulations may be in conflict with or supercede the regulations set forth in this Section 3.6. Section 3.7. Animals. No animals, livestock, or poultry of any kind shall be raised, bred, or kept on any Lot or the Common Area, except that dogs, cats and other customary household pets (but not to exceed a total of three (3) pets) may be kept on Lots subject to limitations, which may be imposed from time to time by applicable governmental authority and further subject to rules and U:\efernandez\CLIENTS\Morrison Homes\5667 -518 (Crestwood Commons)\DecIaration-v.l 0 (Crestwood Heights).doc 11 regulations adopted by the Association, provided that they are not kept, bred, or maintained for any commercial purpose. Each Owner shall be responsible at all times for the prompt collection and proper removal and disposal of all excrement from their pets. The Association may prohibit the keeping of any pet anywhere upon the Property which the Association reasonably determines may constitute a threat to the safety or health of persons lawfully upon the Property. All Owners at all times shall comply with all rules, regulations, ordinances, statutes, and laws adopted, promulgated, or enforced by any public agency having jurisdiction of the Property and relating to animals, and shall at no times allow such animals to constitute a nuisance within any portion of the Property. Section 3.8. Trash and Garbaf!e. No trash, garbage, or other waste material shall be kept or permitted upon any Lot or the Common Area except inside the improvements on each Lot or in sanitary containers concealed from view by, at a minimum, the fence permitted as provided for in Section 3.11 hereafter and/or landscaping, and otherwise in conformity with rules and regulations adopted by the Association. There shall be no burning of trash or any other waste material. Section 3.9. Provisions Are Inoverative As to Initial Construction. Nothing contained in this Declaration shall be interpreted or construed to prevent the Declarant, its transferees, or its or their contractors, or sub-contractors, from doing or performing on all or any part of the Property owned or controlled by the Declarant, or its transferees, whatever they determine to be reasonably necessary or advisable in connection with the completion of the construction, marketing and sale of improvements on the Lots and the Common Area, including, without limitation: (a) erecting, constructing, and maintaining thereon such temporary structures or uses otherwise conforming with applicable zoning regulations of The City of Ocoee, Florida as may be reasonably necessary for the conduct of Declarant's business of completing such construction and establishing the Property as a residential community and disposing of the same in parcels by sale, lease, or otherwise; or (b) maintaining such sign or signs thereon conforming with applicable zoning regulations of The City of Ocoee, Florida as may be reasonably necessary in connection with the sale, lease, or other transfer of the Property in parcels. As used in this Section and its sub-paragraphs, the term "its transferees" specifically does not include purchasers of Lots improved as completed Residences. Section 3.10. Recreational EQuivment. Subject to prior approval of the ARC as to specific location, all basketball backboards, fixed or otherwise, and any other fixed game and play structures shall be located at the rear of the Residence, or in the case of corner Lots on the inside portion of the Lot within the setback lines. Treehouses or platforms of the like kind or nature shall not be constructed on any part of the Lot located in front of the rear line of the Residence constructed thereon. Skateboard ramps or equivalent structures shall not be permitted on any Lot. U:\efernandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.lO (Crestwood Heights).doc 12 Section 3.11. Fences. No fence or walls shall be allowed except for white vinyl fencing between units which shall not exceed a length of eight feet (8') nor a height in excess of six feet (6'); such fencing shall be allowed only to separate each unit from an adjoining unit for privacy purposes; fencing shall not be used for enclosure purposes. All fencing must be approved, in writing, by the ARC, in accordance with the provisions set forth in Article vn hereafter, before being erected. Section 3.12. Safe Neighborhood Improvements District. The City of Ocoee, Florida may require or permit the Declarant to form one or more safe neighborhood improvements districts, as provided for in Part N of Chapter 163, Florida Statutes, as the same may be amended from time to time, for Maintenance and operation of street lights to be installed on the Property, Maintenance of stormwater drainage and retention systems on the Property, or the performance of other services beneficial to Owners of Lots in CRESTWOOD HEIGHTS. All Lots shall be encompassed within any such district(s) which may be established and shall be subject to the restrictions, limitations and assessments as may be imposed upon the property within any such district(s). All Owners shall be bound by any agreement or resolution creating a safe neighborhood improvement district and all Owners shall join in and execute any instrument which may be required in connection with the establishment of such district(s). Section 3.13. Swimming Pools. No swimming pool, whether above or below ground, shall be constructed on any Lot. Section 3.14. Air Conditioning Equipment. Heating and cooling of Residences with systems of active or passive solar, wind and other forms of energy other than gas or electric shall be subject to prior approval of the ARC. Components of such systems that are affixed to the exterior of a Residence shall not be permitted unless the design thereof shall have first been approved by the ARC. Exterior components of any cooling or heating system (or a combination thereof) shall be substantially screened from view from the street fronting the Residence. Section 3.15. Transmission Facilities. No radio or television signals nor any other form of electromagnetic radiation shall be permitted to originate from any Lot which interferes with the reception of television or radio received upon any other Lot. Section 3.16. Maintenance of Lots. No Lot shall be used or maintained as a dumping ground for rubbish, trash, or other waste. All setback areas, yards, walkways, driveways and parking areas shall be maintained and kept in a neat and clean condition, free of refuse and debris. All landscaped areas (up to the edge of pavement on the public right-of-way adjacent to each Lot) shall be maintained in live, healthy and growing condition, properly watered and trimmed. Any planting of grass, shrubs or trees which become dead or badly damaged, shall be replaced with similar sound and healthy plant materials. Section 3.17. Fuel Tanks. No fuel tanks or similar storage receptacles may be exposed to view from front or side streets or adjacent properties, but may be installed within the Residence, U:\efernandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.l0 (Crestwood Heights).doc 13 within a walled in or screened area, or buried underground, and shall be approved by the ARC prior to construction. Section 3.18. Mailboxes. All mailboxes shall meet the requirements of the United States Postal Service for multiple mailboxes and shall otherwise conform with the criteria of the applicable governmental authority as to type of mailboxes allowed and the specific distance needed in the recovery area of the street system. Section 3.19. Inoverative Vehicles and Revair. No inoperative cars, trucks, trailers or other types of vehicles shall be allowed to remain on the Property for a period in excess of two (2) days. There shall be no major maintenance, repair or restoration performed on any motor vehicle on or adjacent to any Lot in the Property; provided, however, such maintenance, repair or restoration may be done if solely within an enclosed garage. All vehicles shall have current license plates. Moreover, no stripped, unsightly, offensive, wrecked, junked, or dismantled vehicles or portions thereof, shall be parked, stored or located upon any Lot at any time. Section 3.20. Garage Doors. All Residences shall be constructed so as to include operational garage doors. All garage doors shall remain closed at all time when not in use for entry or exit to or from the garage. Section 3.21. Window and Sliding Glass Door Treatments. All windows shall have two inch (2") white blinds; all sliding glass doors shall have white vertical blinds. Section 3.22. Rules and Regulations. No Owner shall violate the rules and regulations for the use of the Lots and the Common Area, as the same are from time to time adopted by the Association. The prohibitions and restrictions contained in this Article shall be self-executing without implementation by further rules and regulations; provided, however, the foregoing shall not be construed as an implied prohibition preventing the Association from extending the scope of such prohibitions and restrictions from time to time by adopting further rules and regulations consistent with this Declaration. ARTICLE IV MEMBERSHIP AND VOTING RIGHTS Section 4.1. Membershiv. Every Owner of a Lot shall be a Member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment. Section 4.2. Voting Rights. The Association shall have two classes of voting membership: Class A. Class A Members shall be all Owners, with the exception of the Declarant, each of whom 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 such Lot shall be U:\efemandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.lO (Crestwood Heights).doc 14 exercised as they determine, but in no event shall more than one (1) vote be case with respect to any Lot. Class B. The Class B Member shall be the Declarant who 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 any of the following events, whichever occurs earlier: (a) three (3) months after ninety percent (90%) of the maximum number of residential Lots allowed for the Property have been conveyed to Class A Members; (b) on the date which is ten (10) years after the recording of this Declaration; or (c) upon voluntary conversion to Class A Membership by the Declarant; provided always that such conversion shall not be effective sooner than the point in time at which certificates of occupancy have been issued for seventy percent (70%) of the Lots. At the time of conversion of the Class B membership to Class A membership, all Declarant's rights and obligations shall be transferred to the Association (unless otherwise specifically provided for in this Declaration, without the necessity of any action, formal or otherwise, to be taken by Declarant or the Association). ARTICLE V COVENANT FOR MAINTENANCE ASSESSMENTS Section 5.1. Creation of the Lien and Personal Oblif!ation of Assessments. The Declarant hereby covenants, and each Owner of any Lot by acceptance of the deed for the Lot, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association annual, special and other assessments to be established and collected as hereinafter provided. Such assessments, together with interest, costs, and reasonable attorneys' fees, shall be a charge on the land and shall be a continuing lien upon the Lot against which each such assessment is made. Each such assessment, together with interest, costs, and reasonable attorneys' fees, shall also be the personal obligation of the person who was the Owner of such Lot on the date when the assessment became due. The personal obligation for delinquent assessments shall not pass to a successor in title unless expressly assumed by such successor; provided, however, in no event shall assumption by a successor relieve the former Owner of any personal liability arising hereunder. In the case of co- ownership of a Lot, all such co-owners shall be jointly and severally liable for the entire amount of the assessment. Section 5.2. Purpose of Assessments. The assessments levied by the Association shall be used exclusively (i) to promote the recreation, health, safety, and welfare of the Owners of the Lots, their guests, lessees and business invitees; (ii) for the improvement, repair, replacement and Maintenance of the Common Area and the improvements located thereon; (iii) install and maintain U:\efemandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Dec1aration-v.lO (Crestwood Heights).doc 15 the irrigation and landscaping for that portion of the Private Easement which is contiguous to the boundary of Crestwood Heights; (i v) for a proportionate share of the cost and expense of maintaining the Private Easement and all related amenities, and including, without limitation, property taxes, insurance premiums and property management expenses incurred relative to the Private Easement, all as set forth in Section 4.3 of the Declaration of Easements, Covenants and Restrictions recorded in Official Records Book~ at Page'JZ.:b-, Public Records of Orange County, Florida; (v) for maintenance of any stormwater/retention areas and the Surface Water Management System as set forth in Section 2.5 above; (vi) for payment of all taxes assessed to the Association, if any, in respect to the Common Area, or the improvements or personal property thereon, or both; and (vii) for the general purpose of enabling the Association to perform and fulfill its authorized or required rights, powers, duties and obligations. Section 5.3. Annual Assessments. The Association shall have the power to levy annual assessments against the Lots and the Owners thereof in the manner and for the purposes provided herein. The Association shall have the further right to require the payment of annual assessments in monthly, quarterly or semi-annual installments as the Association may deem necessary and appropriate. Section 5.4. Maximum Annual Assessment. Until January 1 of the year immediately following the date of the conveyance of the first Lot by Declarant to an Owner, the maximum annual assessment shall be $ (''iDD. 00 per Lot, plus any amounts that may be assessed under Sections 5.5 or 5.6 or to meet the requirements of Section 5.15 of this Article V. The actual amount of the annual assessment shall be determined by the Board on an annual basis subject to the following: (a) From and after January 1 of the year immediately following the conveyance of the first Lot by the Declarant to an Owner, the maximum annual assessment may be increased each year without a vote of the Members by an amount not more than fifteen percent (15 %) over the maximum assessment for the preceding year. (b) From and after January 1 of the year immediately following the conveyance of the first Lot by the Declarant to an Owner, the maximum annual assessment may be increased by more than the amount permitted pursuant to Subparagraph (a), above, by a vote of two-thirds (2/3) of each class of Members who are voting in person or by proxy at a meeting duly called for such purpose. (c) The Board or Directors may fix the annual assessment at an amount not in excess of the amount set forth herein, provided, always that same shall be sufficient to make all required deposits to each of the Association's accounts established in Section 5.14 below. Section 5.5. Individual Assessments. The Association may impose an individual assessment upon any Owner whose use or treatment of the Common Area, any Lot or the improvements on any Lot is not in conformity with the standards adopted by the Association or which increases the Maintenance cost to the Association above that which would result from U:\efemandez\CLIENTS\Morrison Homes\5667 -518 (Crestwood Commons)\Dec1aration-v.l0 (Crestwood Heights).doc 16 compliance by the Owner with such use restrictions imposed by this Declaration. The maximum amount of such assessment shall be equal to such cost incurred plus ten percent (10%) to cover the cost of administration and may be enforced in the manner provided for other assessments. Section 5.6. Special Assessments for Capital Improvements and Tracts N. Nl and O. In addition to the annual assessments authorized above, the Association may (i) levy, in any assessment year, a special assessment applicable to that year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Area, including fixtures and personal property related thereto, provided that any such assessment shall have the assent of two-thirds (2/3) of the votes of each class of Members who are voting in person or by proxy at a meeting duly called for this purpose; (ii) levy a special assessment upon authorization of the Board of Directors of the Association, for the purpose set forth in Section 11.1 hereof (iii) levy a special assessment for the costs of maintenance of Tracts N, Nl and 0 which may be levied against the Association by the Ocoee Commons PUD Property Owners' Association for obligations contained under Sections 18.1, 18.16 (a and c) and 18.17 of the Declaration of Easements, Covenants, Conditions and Restrictions for Ocoee Commons Planned Unit Development recorded in Official Records Book~, Page-l::1 ~ of the Public Records of Orange County, Florida. Section 5.7. Notice and Quorum for An)' Action Authorized Under Sections 5.4 and 5.6. Written notice of any meeting called for the purpose of taking any action authorized under Section 5.4 or 5.6 shall be sent to all Members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting. At the first such meeting called, the presence of Members or of proxies entitled to cast majority of all the votes of each class of Membership shall constitute a quorum. Section 5.8. Uniform Rate of Assessment: Required Assessments: Deficit Funding. Both annual and special assessments must be fixed at a uniform rate for all Lots; except that as long as there is Class B Membership, the Declarant will have the following options with respect to the annual assessments: (i) the Declarant may pay the annual assessment at the rate of up to 25% at the rate fixed for Class "A" membership on all unoccupied Lots owned by the Declarant and, in addition, shall pay any operating expenses that exceed the assessments receivable from other Members and other income of the Association; or (ii) the Declarant may pay the full rate of annual assessment at which time the obligation to pay any operating expenses that exceed the assessments receivable from other Members and other income of the Association will cease. The Declarant shall be bound to pay annual assessments in accordance with (i) above until such time as the Declarant gives written Notice to the Association that (ii) above will be the method offixing assessments against the Declarant. This right, benefit and obligation may be specifically assigned to a Builder, provided that the Builder affirmatively accepts such assignment. U:\efernandez\CLIENTS\Morrison Hornes\5667-518 (Crestwood Commons)\Dec1aration-v.lO (Crestwood Heights),doc 17 For that portion of the annual assessments which are allocated for the accounts established in Section 5.14 below, the Association shall impose and collect assessments against each Lot, including those Lots owned or controlled by the Declarant and by any builder, without exception. The obligation to collect and pay assessments to fund the accounts shall commence as of the date on which the City issues its certificate of completion for Streets, Surface Water Management System and other related improvements for the subdivision. However, if the Plan has not been recorded as of that date, the obligation to collect and pay assessments shall commence as of the date the Plan is recorded in the Public Records of Orange County, Florida. The assessments must be imposed and collected in amounts sufficient, when added to investment earnings and other available revenues of the Association, if any, to make all required deposits to each of the required Association accounts established by Section 5.14 below. In addition to the annual and special assessments authorized herein, the Association may levy, as set forth in Section 5.5 above, a single lot individual assessment applicable only to a specific Lot that has failed to meet its Maintenance obligations set forth in Article ill, Section 3.16, or elsewhere in this Declaration. Section 5.9. Initial Assessment. In addition to the annual, special and individual assessments provided for hereunder, the Association shall have the right to collect from each party purchasing a Lot a one-time Initial Assessment in the amount of $ Lf 0 0 .00. The Initial Assessment shall be due and payable only at the time of the conveyance of the Lot to the initial purchaser of the Lot from a Builder and shall not apply to subsequent conveyances of said Lot to subsequent Owners. The Initial Assessment may be utilized in the discretion of the Declarant to offset any obligation of the Declarant to deficit fund the operation of the Association or for any other lawful purpose as set forth herein for the use of Annual Assessments. At the time of payment of the Initial Assessment provided herein, the Owner shall likewise pay to the Association that portion of the Annual Assessment provided in Section 5.3 prorated from the date of purchase through the end of the then current calendar year. Section 5.10. Date of Commencement of Assessments: Due Dates. Exclusive of those amounts required to be collected pursuant to Section 5.8 above, the annual assessments provided for herein shall commence as to all Lots on such date as shall be determined by the Board in conformity with the provisions of this Declaration, but in any event shall commence no later than the date of the conveyance of the first Lot. The first annual assessment shall be adjusted according to the number of months remaining in the calendar year. The Board shall fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every Owner subject thereto. The due dates of periodic installments shall be established by the Board. The Association shall, upon request, and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid. 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. U :\efernandez\CLIENTS\Morrison Homes\5667 -518 (Crestwood Commons)\DecIaration-v.lO (Crestwood Heights).doc 18 Section 5.11. Determination of Allocation of Assessments. The number of Lots used for the calculation of the annual assessments shall be determined as of the ownership of record thirty (30) days prior to the commencement of the fiscal year of the Association and when so determined shall be controlling for the entire fiscal year. Section 5.12. Effect on Nonvavment of Assessments: Remedies of the Association. If any assessment is not paid on the date due as determined in the manner provided in this Article V then such assessment shall become delinquent and shall, together with accrued and accruing interest and costs of collection as herein provided, become due and payable and be a continuing lien on such Lot which shall bind such Lot and the then Owner. The Association may record a notice of lien for delinquent assessments in the Public Records of Orange County, Florida, and foreclose the lien in the same manner as a mortgage. Upon recording, the lien shall secure the amount of delinquency stated therein and all unpaid assessments, interest and costs of collection accruing thereafter until satisfied of record. If the assessment is not paid within thirty (30) days after the delinquency date, the assessment shall bear interest from the date of delinquency at the rate of twelve percent (12%) per annum, and the Association may bring an action at law against the Owner personally obligated to pay the same or foreclose the lien against the Lot, there being added to the amount of such assessment interest at the aforesaid rate and all costs of collection, including reasonable attorneys' fees incurred in connection therewith at trial and all appellate levels. Section 5.13. Subordination of the Lien to Mortgages. The lien of the assessments provided for herein shall be subordinate to the lien of any first mortgage held by an Institutional Lender encumbering a Lot; provided, however, such subordination shall apply only to the assessments with respect to such Lot to the extent they have become due and payable prior to a sale or transfer of such Lot pursuant to a foreclosure judgment or in any other proceeding in lieu of foreclosure. Such sale or transfer shall not relieve such Lot from the liability for any assessments thereafter becoming due, nor from the lien of any such subsequent assessment. An Institutional Lender shall, upon request, be entitled to written notification from the Association of any default of an Owner of any obligation hereunder which is not cured within sixty (60) days. Furthermore, the Association may provide such notice without receiving a request from an Institutional Lender. Section 5.14. Establishment of Accounts. In addition to any other accounts established and maintained by the Association for the deposit of assessments, the Association shall establish and maintain the following separate accounts for as long as this Declaration is in force as follows: (a) A routine-infrastructure-Maintenance account which shall be for the monies designated from assessments for scheduled Maintenance and for unscheduled repair of the Streets, Surface Water Management System, including the stormwater detention/retention areas, sidewalks, curbing, bike paths, traffic-control signage and other Association infrastructure appurtenant to the Streets and Surface Water Management System. The monies on deposit in the routine-infrastructure- Maintenance account may also be used for scheduled Maintenance and unscheduled Maintenance and repair of the entrance and exit gates and their related facilities, provided always that the U:\efernandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\DecIaration-v.lO (Crestwood Heights).doc 19 Maintenance and repair of the Streets and Surface Water Management System shall take priority over the Maintenance and repair of the gates and related facilities. The monies in the routine- infrastructure-Maintenance account may be used by the Association or the Declarant with written consent of the Board of Directors of the Association for the purposes stated herein. (b) A capital-repair/streets account which shall be for the monies designated from assessments for resurfacing and related reconstruction of the Streets in the subdivision, generally every twelve (12) years after issuance by the City of the certificate of completion for the Streets. The monies on deposit in the capital-repairs/streets account may not be expended earlier than the Ith anniversary of the issuance of the certificate of completion for the Streets without the consent of no less than a simple majority of the Owners (excluding Declarant) in the subdivision, which consent may consist of a written consent and/or voting consent at a meeting called in accordance with the By- Laws of the Association, and the consents will only be valid if obtained after turnover of the subdivision infrastructure to the Association. Under no circumstances may the monies in the capital- repairs/streets account be expended before the Declarant turns over control of the subdivision infrastructure to the Association. (c) A capital-repair/drainage pond account which shall be for the monies designated from assessments for major repair and reconstruction of stormwater detention/retention areas of the Surface Water Management System, generally every ten (10) years after issuance by the City of the certificate of completion for the Surface Water Management System. The reconstruction and repair of the detention/retention areas will include, but not be limited to, dredging and sediment removal. The monies on deposit in the capital-repair/drainage pond account may not be expended earlier than the 10th anniversary of the issuance of a certificate of completion for the Surface Water Management System without the written consent of no less than a simple majority of the Owners (excluding Declarant) in the subdivision, which consent may consist of a written consent and/or voting consent at a meeting called in accordance with the By-Laws of the Association, and the consents will only be valid if obtained after turnover of the subdivision infrastructure to the Association. Under no circumstances may the monies in the capital-repair/drainage pond account be expended before the Declarant turns over control of the subdivision infrastructure to the Association. (d) A capital-repair/other infrastructure account which shall be for the monies designated from assessments for major repair, reconstruction, resurfacing and replacement of other parts of the infrastructure related to the Streets and Surface Water Management System, such as the stormwater conveyance systems, sidewalks, curbing and bike paths. The monies on deposit in the capital-repairs/other infrastructure account may also be used for the majorrepair, reconstruction and replacement of the entrance and exit gates and related facilities, provided, always, that the repair, reconstruction, and replacement of the former items of infrastructure related to Streets and Surface Water Management System shall take priority over the repair, construction and replacement of the entrance and exit gates and their related facilities. Each of the foregoing accounts must be asset accounts kept separate and apart from all other funds and accounts of the Association, and for accounting purposes the Association may not U:\efernandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.lO (Crestwood Heights).doc 20 commingle these accounts either with each other or with other funds and accounts of the Association. However, notwithstanding the foregoing, the monies in the above accounts may be commingled with monies in other Association accounts for banking and investment purposes, and may be pooled with other Association monies in a common investment program, so long as the financial books and records of the Association account for these monies separately and apart from other Association monies and keep such monies earmarked for the purposes set forth hereinabove. All earnings from the investment of monies in the required Association accounts shall remain in their respective accounts and shall follow their respective principal. Section 5.15. Required Funding of Accounts. The Association shall fund each of the accounts established in Section 5.14 above in accordance with the following requirements from annual assessments, or if necessary, special assessments: (a) Routine-infrastructure-Maintenance account. The Association must deposit each year into the routine-infrastructure-Maintenance account an amount of money sufficient to perform all scheduled Maintenance and unscheduled repair of the Streets, Surface Water Management System and other infrastructure during the subsequent year. The amount deposited, when added to investment earnings, must be no less than the amounts recommended by the Engineer's Report required elsewhere herein. The deposits required by this subsection shall be increased as needed to include amounts sufficient to cover the cost of Maintenance and repair of the entrance and exit gates and their related facilities which are to be paid from the routine-infrastructure Maintenance account. (b) Capital-repair/streets account. The Association must deposit each year into the capital-repair/streets account an amount sufficient for the Streets to be resurfaced and, as related to the resurfacing, reconstructed no less frequently than every twelve (12) years, and the amount must be estimated by the Declarant and approved by the City prior to issuance of a certificate of completion for the Streets. Deposits to the account must begin in the year in which the City issues its certificate of completion and must be completed no later than the year of the 1 th anniversary of the issuance of the certificate. The amount deposited by the Association must be no less than one-twelfth (1/12th) of the estimate approved by the City. However, after turnover of the Association, the schedule of deposits may be altered such that one or more annual deposits is less than one-twelfth (1/1th) of the estimate, but only if a simple majority or more of all Owners in the subdivision consent in writing and/or by voting at a meeting called in accordance with the By-Laws of the Association to approve the altered schedule. If the Owners in the subdivision consent in writing to a different schedule of deposits, the revised schedule must result in the aggregate amount of deposits during the 12-year period being equal to or in excess of the estimate approved by the City. At the end of each 12-year period, the Association shall update the estimated cost of resurfacing and, as related to the resurfacing, reconstructing the Streets at the end of the next 12-year period, taking into consideration actual costs incurred and expected increases in road construction costs, and shall adjust the amount of its annual deposits to the account accordingly. If for any reason expenditures are made from the capital-repair/streets account prior to the end of the 12-year period, the amount of deposits to the account in the remaining years shall be adjusted so as to ensure that the account contains an U;\efernandez\CLIENTS\Morrison Homes\5667 -518 (Crestwood Commons)\Declaration-v.1 0 (Crestwood Heights).doc 21 amount sufficient at the end of the 12-year period to pay the costs of all expected repair and/or reconstruction and resurfacing requirements. (c) Capital-repair/drainage pond account. The Association must deposit each year into the capital-repair/drainage pond account an amount sufficient for the stormwater detention/retention areas of the Surface Water Management System to be restored and repaired no less frequently than once every ten (10) years, and the amount must be estimated by the Declarant and approved by the City prior to the issuance of a certificate of completion for the Surface Water Management System. Deposits to the account must begin in the year the City issues its certificate of completion for the Surface Water Management System and must be completed no later than the year of the 10th anniversary of the issuance of the certificate. The amount deposited each year by the Association must be no less than one-tenth (1/1 Oth) of the estimate approved by the City. However, after turnover of the Association, the schedule of deposits may be altered such that one or more annual deposits is less than one-tenth (1/1 Oth) of the estimate, but only if a simple majority or more of all Owners in the subdivision consent in writing and/or by voting at a meeting called in accordance with the By-Laws of the Association to approve the altered schedule. If the Owners in the subdivision consent in writing to a different schedule of deposits, the revised schedule must result in the aggregate amount of deposits during the lO-year period being equal to or in excess of the estimate approved by the City. At the end of each lO-year period, the Association shall revise and update the estimate of the cost of restoring and repairing the stormwater detention/retention areas at the end of the next lO-year period, taking into consideration actual costs incurred and expected increases in drainage system construction costs, and shall adjust the amount of its annual deposits to the account accordingly. If for any reason expenditures are made from the capital-repair/drainage pond account prior to the end of the lO-year period, the amount of deposits to the account in the remaining years shall be adjusted so as to ensure that the account contains an amount sufficient at the end of the lO-year period to pay the costs of all expected restoration and repair requirements. (d) Capital-repair/other infrastructure account. The Association must deposit each year into the capital-repair/other infrastructure account an amount sufficient for other subdivision infrastructure related to the Streets and Surface Water Management System such as stormwater conveyance systems, sidewalks, curbing and bike paths, to be reconstructed and/or repaired no less frequently than once every fifty (50) years, and the amount must be approved by the City prior to issuance of a certificate of completion for those improvements. Deposits to the account must begin in the year in which the City issues its certificate of completion for those improvements and must be completed no later than the 50th anniversary of the issuance of the certificate. The amount deposited each year by the Association must be no less than one fiftieth (1/50th) of the estimate approved by the City. However, after turnover of the Association, the schedule of deposits may be altered such that one or more annual deposits is less than one-fiftieth (1/50th) of the estimate, but only if a simple majority or more of all Owners in the subdivision consent in writing and/or by voting at a meeting called in accordance with the By-Laws of the Association to approve the altered schedule. If the Owners in the subdivision consent in writing to a different schedule of deposits, the revised schedule must result in the aggregate amount of deposits during the 50-year period being equal to or in excess of the estimate approved by the City. At the end of each 50-year period, the Association shall update U;\efernandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Dec1aration-v.lO (Crestwood Heights).doc 22 the estimated cost of reconstructing and/or repairing improvements, taking into consideration actual costs incurred and expected increases in reconstruction and repair costs, and shall adjust the amount of its annual deposits to the account accordingly. If for any reason expenditures are made from the capital-repair/other infrastructure account prior to the end of the 50-year period, the amount of deposits to the account in the remaining years shall be adjusted so as to ensure that the account contains an amount sufficient at the end of the 50-year period to pay the cost of all expected reconstruction and/or repair requirements. Section 5.16. Financial Reports and Other Requirements. Each year the Association shall cause a financial report of the required Association accounts set forth in Section 5.14 above to be performed and prepared and a copy of the report shall be submitted to each Owner of property in the subdivision within the time frame required under the "Financial Reporting" requirements of Chapter 720, Florida Statutes. At a minimum, the report shall confirm the existence of each of the required Association accounts and report the amounts of deposits into and the expenditures from each account during the prior year, along with an itemization of the expenditures from the required Association accounts. Finally, the financial report shall disclose whether any of the required Association accounts has on deposit less than the amount required under the provisions of Section 5.15 above. Section 5.17. Forced Assessment. If at any time the Association fails to levy, collect or enforce assessments for the Maintenance of Common Areas, or if the Association fails to maintain assessments at a level allowing for adequate maintenance, the City of Ocoee shall have the right to levy, collect and enforce assessments for Maintenance of common Areas or to cause the assessments to be at a level allowing for adequate maintenance, and shall be entitled to all rights and remedies available to the Association, as provided for herein, including lien rights. In addition, the St. John's River Water Management District and the City shall have the right to levy, collect and enforce assessments with respect to the operation, maintenance and repair of the Surface Water Management System in the event the Association fails to do so or fails to maintain assessments at a level allowing for adequate maintenance and repair. Section 5.18. No Assessment. It is specifically provided that no property owned by the City of Ocoee or any other governmental entity shall be subject to assessments levied by the Association. ARTICLE VI SUBDIVISION STREETS Section 6.1. Maintenance: Assessments. Unless the Maintenance of Tract E is now or hereafter assumed by a governmental entity, the Declarant shall maintain Tract E within the Property at its sole cost and expense prior to conversion of Class B to Class A Membership, and thereafter the Association shall maintain Tract E within the Property and assess the cost of Maintenance to the Members. The estimated Maintenance cost shall be included in each annual budget and assessed to each Lot. The Association shall have the right to propose a special assessment, if necessary, to defray the cost of any extraordinary repairs of Tract E. The procedure for the adoption and collection U:\efemandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Dec1aration-v.10 (Crestwood Heights).doc 23 of regular and special assessments for Maintenance of Tract E shall be as set forth in Article V. Notwithstanding the foregoing sentence, the Board of Directors of the Association, if it finds that an emergency road repair is needed to promote or insure the health, safety or welfare of the community, may take such curative action as may be necessary and assess the cost thereof as a special assessment without the necessity of a prior meeting of Members. Section 6.2. Street Parkin!!. No vehicle may remain parked on a Street area for more than one hour, except that vehicles of guests who are visiting an Owner may park in the Street for a period not exceeding four hours if there is no room on the Owner's driveway. However, any cars so parked must not be parked in such a way as to hinder ability to pass on the street, hinder access to any driveway, or to create a safety hazard. The Association shall have the right to tow repeat offenders' vehicles after placing a warning notice on the offending car one time. Section 6.3. Prohibited Vehicles. As long as Tract E is not dedicated to a local government, each of the following vehicles is prohibited from using Tract E: motorcycles, motor-scooters, all- terrain vehicles, dune buggies, or similar vehicles. Section 6.4. Security. As long as Tract E is not dedicated to a local government, the Association shall have right to provide for security in order to keep unauthorized persons or vehicles off Tract E and the Property. The security provisions may include a restricted access point at the subdivision entrance. Section 6.5. Access. Unless otherwise stated herein, all of the Streets located in Crestwood Heights are not dedicated for public use and such Streets and easements are not and will not be a part of the City system of public roads. Said Streets and easements shall remain private and the sole exclusive property of the Declarant, its successors and assigns, and shall be conveyed to the CRESTWOOD HEIGHTS TOWNHOME OWNERS ASSOCIATION, INC. by fee simple quit claim deed as provided for elsewhere herein. The Declarant does hereby grant to the present and future owners of adjacent lands within the boundaries of the Plan and their guests, invitees and domestic help, and to delivery, pick up and emergency protection services, police, fire and other authorities of the law, United States Postal Service mail carriers, gas, power, telephone, cable television, street lighting and solid waste service providers, representatives of utilities authorized by the Declarant to serve the land shown on the Plan, holders of mortgage liens on such lands, the Declarant, and such other persons as the Declarant, from time to time, may designate, the non- exclusive and perpetual right of ingress and egress over and across said Streets and easements. The City of Ocoee is also granted the right, in perpetuity, to enter, operate, construct, reconstruct, repair, maintain and inspection all facilities which have been or will in the future be constructed or installed for the public good and welfare, and which may include but not be limited to the following: water, sanitary sewer, and stormwater sewers. In the event that The City of Ocoee open cuts the pavement in any Street, or any portion of a Street, to replace, repair or service a City facility, then the City shall only be required to replace that portion of the road within the limits of the open cut. To the extent that the Owner referred to in the Plat of Ocoee Commons PUD, recorded in Plat Book~, Page ~, Public Records of Orange County, Florida, is required to maintain the Surface Water U:\efernandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Dec1aration-v.1O (Crestwood Heights).doc 24 Management System, an easement for access to the Streets is granted to the Owner, to be exercised so that the Owner can fulfill its obligation, if any, to maintain, operate and repair such system. Section 6.6. Rights of Declarant. There is hereby granted a perpetual easement to Declarant, its successors and assigns for the purpose of providing access to prospective purchasers of Lots or of constructed homes. No plan of restricted access through the use of a guard gate or check point may be commenced without the Declarant's consent. This easement will terminate automatically if the access ensured hereby is provided by dedication of Tract E to a local government. Section 6.7. Construction Vehicles. Access for construction vehicles shall be permitted only during daylight hours for the purpose of constructing improvements which have received prior approval of the ARB. Section 6.8. Sveed Limits. Subject to applicable law in the event Tract E is dedicated to a local government, traffic through Tract E within the Property shall be limited to a maximum speed of fifteen (15) miles per hour. The Association may establish a different limit or may establish other traffic regulations as it deems necessary. Until such time that dedicated of Tract E to a local government occurs, enforcement of traffic laws, as requested by the Association, shall be by the City of Ocoee Police Department and all costs of such enforcement incurred by the Police Department shall be paid by the Association. Section 6.9. Periodic Resurfacing. The Association shall require that the Streets be resurfaced every twelve (12) years unless a longer period of time is approved by The City of Ocoee Engineer. Section 6.10. Transfer to The Citv of Ocoee. Any transfer of property rights concerning the Streets or other subdivision infrastructure, including the Property on which such infrastructure is located, to The City of Ocoee or other governmental entity shall require the concurrence of all Lot Owners. Section 6.11. The Citv of Ocoee Liabilitv. Until such time that dedication of Tract E to a local government occurs, the Declarant (to the extent and limited to (i) the period during which the Declarant controls the Association, and (ii) the extent the Declarant has a right, title, interest and/or estate in or to any platted lots) and the Association hereby expressly hold the City of Ocoee and its officers and employees harmless from any cost arising directly or indirectly, out of maintenance, repair and/or reconstruction of, or tort liability or award of damages related to or arising in connection with, Tract "C" and/or the Streets, sidewalks, the Surface Water Management System or any other subdivision infrastructure. Section 6.12. No Tax Discount. No tax discount or credit will be available to Lot Owners for the Maintenance or repair of the Streets and the Surface Water Management System by the Association. U:\efemandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.l0 (Crestwood Heights).doc 25 Section 6.13. Rights of The City ofOcoee. The Association shall recognize and agree that The City of Ocoee, at its option, after written notice to the Association that the Association is not in compliance with anyone or more of the Sections 2.6 through 2.8,5.14 through 5.16 and 6.9 through 6.11 hereof, and after the failure of the Association to comply with such Section or to proceed diligently to comply with same within sixty (60) days after receipt of such notice, may remove any Street gates or otherwise prohibit closure of same, and upon dedication or conveyance of the Streets to the City of Ocoee, assume responsibility for the repair and Maintenance of the Streets and drainage system using available reserve revenues of the Association in the routine-infrastructure- Maintenance account and the several capital-repair accounts, or if no monies exist, or if an insufficient amount exists, using such other revenues or standard financing methods, whether provided for in the Declaration or otherwise, as The City of Ocoee may properly elect, including, but not limited to, special assessments against the Lots. Section 6.14. Duration of Requirements of The City ofOcoee: Amendment. Sections 2.6 through 2.8, Sections 5.14 through 5.16, Section 6.5 and Sections 6.9 through 6.13 are conditions and restrictions imposed and required by The City of Ocoee, which Sections shall remain in full force and effect for so long as CRESTWOOD HEIGHTS remains a gated community with privately owned streets. Such provisions shall automatically cease to be effective upon the removal of the gates and dedication of the Streets to The City of Ocoee. Notwithstanding any other provisions to the contrary, Sections 2.6 through 2.8, Sections 5.14 through 5.16, Section 6.5 and Sections 6.9 through this Section 6.14 may not be amended without the prior written consent of The City of Ocoee and the execution and recording in the Public Records of Orange County of a proper joinder and consent to such Amendment by The City of Ocoee. Section 6.15. Convevance of Streets. At such time as the Plan is recorded, the Declarant shall convey by warranty deed its fee simple right, title and interest in and to the Tract E Streets as shown on the Plan to the Association, which deed shall be recorded among the public records of Orange County, Florida. ARTICLE VII ARCHITECTURAL CONTROL Section 7.1. Establishment of Architectural Review Committee. There is hereby established an Architectural Review Committee (the "ARC") which shall consist of three (3) or more persons designated and appointed by the Declarant. At such time as the Declarant no longer owns any Lot within the Property (or earlier at the option of the Declarant), the Declarant shall assign to the Association all rights, powers duties and obligations of the ARC, whereupon the Board shall appoint the members of the ARC and shall provide for the terms of the members of the ARC. Members of the ARC need not be officers, directors or Members of the Association. Section 7.2. ARC Authority. The ARC shall have full authority to regulate the use and appearance the Property and all improvements constructed thereon to assure harmony of external U:\efemandez\CLIENTS\Morrison Homes\5667 -518 (Crestwood Commons)\Dec1aration-v.l 0 (Crestwood Heights).doc 26 design and location in relation to surrounding improvements and topography and to protect and preserve the value and desirability of the Property as a residential community. The power to regulate shall include the power to prohibit those exterior uses or activities deemed inconsistent with the provisions of this Declaration, or contrary to the best interests or the Association in maintaining the value and desirability of the Property as a residential community, or both. The ARC shall have authority to adopt, promulgate, rescind, amend and revise rules and regulations in connection with the foregoing; provided, however, such rules and regulations shall be consistent with the provisions of this Declaration and, in the event the Board has not constituted itself as the ARC, such rules and regulations shall be approved by the Board prior to the same taking effect. Violations of the rules and regulations of the ARC shall be enforced by the Board, unless such enforcement authority is delegated to the ARC by resolution of the Board. Section 7.3. ARC Approval. No building, fence, hedge, walk, dock, pool, planting, sign, or enclosure or addition to any improvement located upon a Lot shall be constructed, erected, removed, planted or maintained nor shall any addition to, or any change or alteration thereof, be made until the plans and specifications showing the nature, kind, shape, height, materials, color scheme and location of same shall have been submitted to, and approved in writing by, the ARC. Any change in the exterior appearance of any improvement, including, without limitation, repainting in the same or different color, exterior refinishing, re-roofing, or the addition of architectural details, decorative sculptures or wrought iron grills, construction of fences or other enclosures, shall likewise require written approval of the ARC before any such work is commenced. The ARC shall have the right to refuse approval of plans, specifications or locations upon any grounds, including purely aesthetical considerations, which the ARC, in its sole and absolute discretion, deems appropriate. Section 7.4. Submissions of Plans and Specifications. As part of the application process to the ARC, two (2) complete sets of plans and specifications (including the landscape plan) prepared by an architect or other person found to be qualified by the ARC and two (2) site plans shall be submitted for approval by written application on such form as may be provided, required or approved by the ARC. In addition, the anticipated commencement date and estimated time for completion shall be included in the application to the ARC. In the event the information submitted to the ARC is, in its opinion, incomplete or insufficient in any manner, it may request and require the submission of additional or supplemental information. Section 7.5. Standards. No approval shall be given by the ARC pursuant to the provisions of this Article unless the ARC determines that such approval shall (i) assure harmony of external design, materials, and location in relation to surrounding improvements and topography within the Property; (ii) shall protect and conserve the value and desirability of the Property as a residential community; (iii) shall be consistent with the provisions of this Declaration; and, (iv) shall be in the best interests of the Association in maintaining the value and desirability of the Property as a residential community. The ARC may deny any application upon the ground that the proposed alteration will create an undue burden of Maintenance upon the Association. In the event additional Maintenance may be required, then the ARC shall require an agreed method of payment for such Maintenance cost and require security for the payment of same. The ARC may condition the U:\efernandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.l0 (Crestwood Heights).doc 27 approval of any application upon the Owner providing reasonable security that the contemplated work will be completed substantially in accordance with the plans and specifications therefor submitted to the ARC. Section 7.6. DrainaJ!e. All plans submitted to the ARC shall contain a drainage plan which shall be consistent with the master drainage plan for the Property or, in the alternative, contain an affirmative statement that none of the work contemplated by the plans will have any effect on the drainage of the Lot. In all events, each Owner shall be and remain fully liable for any and all damage caused directly or indirectly by any change in the design of function of drainage on or from any Lot, or the grade of any Lot, in connection with the construction, installation or Maintenance of any approved changes by the Owner. In the event of any change to the drainage design, function or grade, the Association may, but shall not be required to, restore the drainage design, function or grade and may charge the Owner for all reasonable costs incurred in connection therewith plus ten percent (10%), said charge to constitute a lien on the Property of such Owner. In connection with any such restoration, the Association may exercise powers granted to it under Section 5.5 of Article V. Section 7.7. Completion. All improvements for which approval of the ARC is required and has been obtained pursuant to the terms and provisions of this Declaration shall be completed within the time period specified in such approval. In the event the improvements are not completed within the required time, the Association may, thirty (30) days following written notice from the ARC to the Owner, complete such improvements at the sole expense of the Owner in accordance with the plans and specifications previously approved by the ARC and may charge the Owner for the expenses incurred in connection therewith plus ten percent (10%), said charge to constitute a lien on the Property of the Owner. In connection with any such restoration, the Association may exercise powers granted to it pursuant to Section 5.5 of Article V. Section 7.8. RiJ!ht of Entry. There is specifically reserved to the Association and the ARC, the right of entry and inspection upon any Lot for the purpose of determining and/or correcting the existence of any activity or condition which violates the terms of any approval given by the ARC or the terms of this Declaration. The ARC is specifically empowered to enforce the provisions of this Declaration by any legal or equitable remedy, and in the event it becomes necessary to resort to litigation to enforce the terms of this Declaration, or to remove any improvements which have not been approved by the ARC or have not been constructed in conformity with approval granted by the ARC, the prevailing party shall be entitled to recover all costs, expenses and reasonable attorneys' fees in connection therewith. The Association shall indemnify and hold the ARC and its members harmless from any and all costs, expenses and liabilities, including reasonable attorneys' fees, incurred by virtue of service as a member of the ARC. Section 7.9. Violations. In each instance where improvements have been constructed, or the construction thereof is substantially advanced, in such manner that the same violates the restrictions contained in this Declaration, including, activities carried out which are not consistent with plans and specifications approved by the ARC, the ARC (if it has knowledge of such violation) shall notify the U:\efernandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\DecIaration-v.lO (Crestwood Heights).doc 28 Board in writing and the Board may thereafter direct the violating Owner to immediately remove any/or cure such violation. For purposes hereof, all Owners specifically consent and agree to comply with the provisions of this Section as of the time such Owner shall become vested with title to any portion of the Property. Section 7.10. Waivers. The ARC shall have the right, but not the obligation, to grant waivers for minor deviations and infractions of the covenants, conditions and restrictions contained herein. The granting of any waiver may be given or withheld in the sole discretion of the ARC and any prior grant of a similar waiver shall not impose upon the ARC the duty to grant new or additional waivers for like or similar conditions. Section 7.11. Disclaimer of Liabilitv. The Association, the Declarant, the ARC and all officers, employees, directors or members thereof shall in no way be liable to any person or persons submitting plans and specifications for approval by reason of mistake in judgment, negligence or non-feasance arising out of, or in connection with, the approval, disapproval or failure to approve any such plans and specifications. Each person who submits plans and specifications for approval agrees, by submission thereof, that it will not bring any action or suit whatsoever against the Association, the Declarant, the ARC, or any officer, employee, director or member thereof. ARTICLE VIII PARTY WALLS AND OTHER SHARED STRUCTURES Section 8.1. Definition of Partv Wall. Each wall, including patio walls, fence, driveway or similar structure which is built as part of the original construction of the homes upon the Property and placed on the dividing line between the Lots shall constitute a party wall, and, to the extent not inconsistent with the provisions of this Article, the general rules of law regarding party walls and liability for property damage due to negligence or willful acts or omissions shall apply thereto. Section 8.2. Sharing of Costs of Maintenance. The cost of reasonable repair and Maintenance of a party wall shall be shared by the adjoining Owners of such wall in proportion to the use thereof, without prejudice, however, to the right of any Owner to call for a larger contribution from the adjoining Owner under any rule of law regarding liability for negligent or willful acts or omissions. Section 8.3. Destruction of a Partv Wall. If a party wall is destroyed or damaged by fire or other casualty, any Owner who has used the wall may restore it, and if the other Owners thereafter make use of the wall, they shall contribute to the cost of restoration thereof in proportion to such use without prejudice, however, to the right of any such Owners to call for a larger contribution from the others under any rule of law regarding liability for negligent or willful acts or omissions. Section 8.4. Liabilitv for Negligent or Willful Acts. Notwithstanding any other provision of this Article, an Owner, who, by his negligent or willful act, causes any party wall to be exposed to the elements shall bear the whole cost of furnishing the necessary protection against such elements. U:\efemandez\CLIENTS\Morrison Homes\5667 -518 (Crestwood Commons)\Dec1aration-v.lO (Crestwood Heights).doc 29 Section 8.5. RiJ!ht of Contribution Runs With the Land. The right of any Owner to contribution from any other Owner under this Article shall be appurtenant to the land and shall pass to such Owner's successors in title. Section 8.6. Restriction on Improvements to Party Wall. In addition to meeting the Owner requirements of this Declaration and of any building code or similar regulations or ordinances, any Owner proposing to modify, make additions to or rebuild in any manner which requires the extension or other alteration of any party wall, shall first obtain the written consent of the adjoining Owner. Section 8.7. Resolution of Disputes Between Owners as to Party Walls. In the event of a dispute between the Owners with respect to the repair or rebuilding of a party wall or with respect to the sharing of the cost thereof, then, upon written request of one such Owners addressed to the Association, the matter shall be submitted to arbitration under such rules as may from time to time be adopted by the Association. If no such rules have been adopted, then the matter shall be submitted to three arbitrators, one chosen by each of the Owners and the third by the two so chosen, or, if the arbitrators cannot agree as to the selection of the third arbitrator within five (5) days, then by any Judge of the Circuit Court of Orange County, Florida. A determination of the matter signed by any two of the three arbitrators shall be binding upon the Owners, who shall share the cost of arbitration equally. In the event one party fails to choose an arbitrator within ten (10) days after personal receipt of a request in writing for arbitration from the other party, then the other party shall have the right and power to choose both arbitrators. Section 8.8. BindinJ! Effect. These covenants contained in this Article VIII shall be binding upon the heirs and assigns of any Owners but no person shall be liable for any act or omission respecting any party wall except such as took place while an Owner. Section 8.9. Rules and ReJ!ulations. The Association may by its By-Laws, rules or regulations, govern the use of party walls by Owners, if necessary, to prevent the imposition of annoyances between Owners. ARTICLE IX ANNEXATION OF ADDITIONAL PROPERTY Section 9.1. Annexation without Association Approval. At any time prior to ten (10) years from the date hereof, Additional Property may be annexed, in whole or in part, by the Declarant and made subject to the governing provisions of this Declaration without the consent of Class "A" Members of the Association. The Lots and the improvements thereon, together with the rights and obligations of the Declarant and other Owners thereof, upon all or any portion of such Additional Property shall become subject to the provisions of this Declaration upon recording of an appropriate supplement or amendment hereto executed by the Declarant without the consent of the Class "A" Members. U:\efemandez\CLIENTS\Morrison Homes\5667 -518 (Crestwood Commons)\Declaration-v.lO (Crestwood Heights).doc 30 ARTICLE X RIGHTS AND OBLIGATIONS OF THE ASSOCIATION Section 10.1. Maintenance. The Association, subject to the provisions of Section 2.6 and the rights of the Owners set forth in this Declaration, shall be responsible of the exclusive management, control and Maintenance of the Surface Water Management System and the Common Area, together with all improvements thereon, including specifically, but not by way oflinritation, all furnishings and equipment related thereto, paving, drainage structures, walls, lighting fixtures and appurtenances, landscaping, sprinkler system, entry features and markers, and signs, and shall keep the same in good, clean, substantial, attractive and sanitary condition, order, and repair. In furtherance of the forgoing, the Association shall have the right to enter into such contracts or agreements as the Board shall deem appropriate. Section 10.2. Rif!ht of Entrv. The Association, through its employees, contractors and agents, is hereby granted a right of entry into and upon each Lot to the extent reasonably necessary to discharge the Association's performance of any duty imposed, or exercise of any right granted, by this Declaration, including, the discharge of any duty of Maintenance or replacement, or both, imposed upon any Owner. Such right to entry shall be exercised in a peaceful and reasonable manner at reasonable times and upon reasonable notice whenever the circumstances permit. Entry into any improvement upon any Lot shall not be made without the consent of the Owner or occupant thereof except when such entry is reasonably necessary for the immediate preservation or protection of the health or safety of any person lawfully upon the Property or of any such person's property. An Owner shall not arbitrarily withhold consent to such entry for the purpose of discharging any duty or exercising any right granted by the foregoing Sections of this Article, provided such entry is upon reasonable notice, at a reasonable time, and in a peaceful and reasonable manner. Section 10.3. Services of Association. The Association may obtain and pay for the services of any person or entity to manage its affairs, or any part thereof, to the extent it deems appropriate and advisable, together with such other personnel as the Association shall deternrine to be necessary or desirable for the proper operation of the Property, whether such personnel are furnished or employed directly by the Association or by any person or entity with whom it may contract. The Association may obtain and pay for legal and accounting services necessary or desirable in connection with the operation of the Property or the enforcement of this Declaration. Section lOA. Services for Owners. The Association may contract, or otherwise arrange, with any person or entity to furnish water, trash collection, sewer services, maintenance, replacement, and other common services to all Lots. Any Owner additionally may voluntarily contract with the Association for the Association to perform, or cause performance of, any services benefiting such Owner's Lot at the cost and expense of such Owner. All sums due the Association pursuant to such contact shall be added to and become a part of the assessment against such Owner's Lot. Notwithstanding the foregoing, the Association may not contract with any Owner to provide U:\efernandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.l0 (Crestwood Heights).doc 31 any service at such Owner's expense which it is the duty of the Association to provide at its own expense under any provision of this Declaration. Section 10.5. Personal Provertv for Common Use. The Association may acquire and hold tangible and intangible personal property and may dispose of the same by sale or otherwise. Section 10.6. Rules and ReJ!ulations. The Association may from time to time adopt, alter, amend, and rescind rules and regulations further governing the use of the Lots and of the Common Area, which rules and regulations shall be consistent with the rights and duties established by this Declaration. Section 10.7. Imvlied RiJ!hts. The Association may exercise any other right or privilege given to it expressly by this Declaration, the Articles, or the By-Laws, and every other right or privilege reasonably to be implied from the existence of any right or privilege granted herein or reasonably necessary to effectuate the exercise of any right or privilege granted herein. Section 10.8. Restriction on CavitalImvrovements. Except for replacement or repair of those items installed by the Declarant, and except for personal property related to the Maintenance of the Common Area, the Association may not authorize capital improvements to the Common Area without consent of the Declarant during a period of five (5) years from the date of this Declaration. At all times hereafter, all capital improvements to the Common Area, except for replacement or repair of those items installed by the Declarant and except for personal property related to the Maintenance of the Common Area, shall require approval of the Board. Section 10.9. Good StandinJ!. The Association shall file its annual reports timely and at all times be in good standing with the Florida Department of State, Division of Corporations. ARTICLE XI RECONSTRUCTION OR REPAIR AFTER CASUALTY Section 11.1. DamaJ!e to Common Area. In the event that any portion of the Common Area is damaged or destroyed by casualty, it shall be repaired or restored by the Association to substantially its condition prior to the damage or destruction. Repair or reconstruction of the Common Area shall be substantially in accordance with the plans and specifications pursuant to which the same was originally constructed. All insurance proceeds shall be applied to the restoration and repair. If the insurance proceeds are insufficient, the deficit shall be assessed against all Owners as a special assessment. If there is a surplus of insurance proceeds, it shall become the property of the Association. Each Owner shall be responsible to the Association for damage to the Common Area caused by such Owner or the tenants, guests or business invitees of such Owner and the Association shall have the right to recover its expenses, including reasonable attorneys fees, in the event it should become necessary for the Association to initiate an action to recover damages from an Owner. U:\efemandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.l0 (Crestwood Heights).doc 32 Section 11.2. Damage to the Lots. In the event of damage or destruction to any portion of the improvements on a Lot, the improvements shall be repaired or restored in accordance with the provisions of the applicable insurance requirements. In the event the Owner is unable to rebuild the improvements on the Lot, such Owner shall clear the debris and have the Lot leveled and restored within sixty (60) days from the date of destruction or damage. Repair or reconstruction of party walls shall be governed in accordance with Article VII above, and in the event of any conflict between Article VII and this Section, the provisions of Article VII shall control. Section 11.3 Insurance. The Association shall carry an insurance policy insuring itself from liability for damages related to or arising in connection with the Streets, sidewalks and Surface Water Management System (including stormwater detention/retention areas), and the entitlements granted to the Association and the Owners for Tract P and the Private Easement described in Section 1.1 (h) above. Such insurance shall name the Declarant and Ocoee Commons, LLC, a Florida limited liability company, and Blackwoods/50, LLC, a Florida limited liability company (collectively, the Declarant of the Declaration of Easements, Covenants and Restrictions recorded in Official Records Book~, at Pagel'Z..:z.., Public Records of Orange County, Florida) as additional insureds. The minimum amount of insurance required shall be established by resolution of the Board of City Commissioners, and if no resolution shall be passed, then in the reasonable judgment of the Board of Directors of the Association. ARTICLE XII GENERAL PROVISIONS Section 12.1. Enforcement. The Association, the Declarant, or any Owner, shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens and charges now or hereafter imposed by, or pursuant to, the provisions of this Declaration or the City of Ocoee Code as same relates to the requirements set forth herein against Declarant, the Association or another Owner, as the case may be; and the party enforcing the same shall have the right to recover all costs and expenses incurred, including reasonable attorneys' fees. In the event the Association enforces the provisions hereof against any Owner, the costs and expenses of such enforcement, including reasonable attorneys' fees, may be assessed against such Owner's Lot as a special assessment pursuant to the provisions hereof. Failure by the Association or by any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so at any time. If these restrictions are enforced by appropriate proceedings by any such Owner or Owners, such Owner or Owners may be reimbursed by the Association for all or any part of the costs and expenses incurred, including reasonable attorneys' fees, in the discretion of the Board. In addition to the foregoing, the St. Johns River Water Management District and/or The City of Ocoee shall have the right to enforce, by proceedings at law or in equity, the provisions contained in the Declaration as they may relate to the maintenance, operation and repair of the Surface Water Management System. Additionally, The City of Ocoee shall have the right, but not the obligation, to enforce, by proceedings at law or in equity, the provisions contained in the Declaration as they may relate to the construction, reconstruction, maintenance, operation and repair U:\efemandez\CLffiNTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.10 (Crestwood Heights).doc 33 of the Streets. Venue for any action to enforce the provisions of this Declaration or the City of Ocoee Code, as same relates hereto, shall lie in Orange County, Florida. If any dispute arises between an Owner and the Declarant, or between the Association and the Declarant, with respect to the repair and Maintenance of the Streets, sidewalks, Surface Water Management System and/or funding for same, such Owner and the Declarant or the Association and the Declarant, respectively, agree in good faith to attempt to settle such disputes by non-binding mediation under the Commercial Mediation Rules of the American Arbitration Association. Such non-binding mediation shall be a condition precedent to the filing of any action at law or in equity to enforce the provisions of this Declaration pertaining to the repair and Maintenance of the Streets, sidewalks and Surface Water Management System and/or funding of same. Notwithstanding the foregoing, non-binding mediation shall not be required in any case where immediate relief, such as injunction relief, is sought. Section 12.2. Severabilitv. Invalidation of anyone of these covenants or restrictions by judgment or court order shall in no way affect any other provisions, which shall remain in full force and effect. Section 12.3. Duration and Term. The covenants and restrictions of this Declaration shall run with and bind the land, and shall inure to the benefit of and be enforceable by the Association, or the Owner of any Lot subject to this Declaration, their respective legal representatives, heirs, successors and assigns, for a term of thirty (30) years from the date this Declaration is recorded, after which time said covenants and restrictions shall be automatically extended and renewed for successive ten (10) year periods. Section 12.4. Amendment. Unless provided otherwise herein, this Declaration may be amended by the affirmative vote of seventy-five percent (75%) of the Members present or represented by proxy and entitled to vote at any meeting at which a quorum is present as provided in the By-Laws when written notice of such meeting specifies the proposed amendment and amendments to be considered at such meeting. If an amendment is approved by the Members in the foregoing manner, the President and Secretary of the Association shall execute an Amendment to this Declaration which shall set forth the amendment, the effective date thereof, the date of the meeting of the Association at which such amendment was adopted, the date upon which notice of such meeting was given, the number of votes required to constitute a quorum at such meeting, the number of votes necessary to adopt the amendment, the total number of votes cast in favor of the amendment, and the total numbers of votes cast against the amendment. Anything contained herein to the contrary notwithstanding, there shall be no amendments to the Declaration that materially or adversely affect rights granted or reserved herein to the Declarant without its written consent. In addition, the Declarant expressly reserves the right, so long as it is a Class "B" Member, to amend this Declaration without the necessity of concurrent action or approval of the owners so long as such amendment does not materially or adversely affect the interests of the Owners. Any amendment to the Declaration which alters any provision relating to rights of the City including, specifically, but not by way of limitation, any amendment which would conflict with any land use approval or permits U:\efernandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.lO (Crestwood Heights).doc 34 granted by the City, or which conflict with the Code of Ordinances or Uniform Land Development Regulations of the City, much have the prior approval of the City and must be in the form of a recordable instrument signed by the City. Any amendment to this Declaration which would tend to alter or affect The City of Ocoee Drainage and Utility Easements, if any, as shown on the Plan or which would otherwise affect the City, shall require prior written approval of The City of Ocoee in an instrument recorded with such amendment. All amendments to this Declaration shall be recorded in the Public Records of Orange County, Florida. Section 12.5. Effect of Recordinf!. Any Lot situated within the Property shall be deemed to be "subject to assessment," as such term is used in this Declaration, the Articles or the By-Laws, upon recording of this Declaration; and, any Additional Property annexed pursuant to the provisions hereof shall be deemed "subject to assessment" upon recording of the appropriate supplement or amendment to this Declaration annexing the same. Section 12.6. Application of Declaration to City. This Declaration shall not apply to any property depicted on the Plan which has been dedicated to the City of Ocoee, ARTICLE XIII DISCLOSURES Section 13.1. Copv of Declaration and Association Bvlaws. It is hereby required that each initial purchaser of a residential Lot in the CRESTWOOD HEIGHTS Subdivision for the personal or family use of the purchaser shall receive a copy of the Declaration at or prior to the time the sales contract is executed, together with the current budget for the Association, including a schedule disclosing the then-existing amounts of the periodic assessments for each of the Association accounts required by Section 5.14 above and a copy of the most recent year-end financial statement for the Association, and if none are then existing, a good faith estimate of the Association operating budget along with a form to be signed by such initial purchaser acknowledging receipt of a copy of the Declaration, budget, financial statement or good faith estimate. Further, it is hereby required that the original ofthe form acknowledging receipt of a copy of the Declaration is to be attached to the sales contract as an exhibit or appendix. Compliance with the provisions of this Section is not a substitute for compliance with any other disclosures to be made to an initial purchaser as required by law. Section 13.2. Limitation on Items Covered hv Section 5.14 Assessments. The periodic assessments for the Association accounts required by Section 5.14 above do not include assessments for either the routine Maintenance of or the capital repair and replacement of Association facilities not related to subdivision infrastructure (such as Common Area landscaping, entrance and exit gates, walls, swimming pools, clubhouses, parks, other recreation areas, etc.). Section 13.3. Gated Community Cost Disclosure Statement. U:\efemandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.10 (Crestwood Heights).doc 35 THE FOLLOWING DISCLOSURES ARE MADE TO PURCHASERS IN CRESTWOOD HEIGHTS IN ACCORDANCE WITH THE REQUIREMENTS OF THE CITY OF OCOEE: (a) BYLAW, THE CITYOFOCOEE CANNOT PAY TO MAINTAIN THE ROADS, SIDEWALKS AND DRAINAGE IN THIS COMMUNITY BECAUSE THESE THINGS ARE PRIVATE PROPERTY AND THE GENERAL PUBLIC CANNOT ACCESS THE COMMUNITY. (b) ALTHOUGH THE COST OF PROPERLY MAINTAINING AND REPAIRING ROADS, SIDEWALKS AND DRAINAGE SYSTEMS CAN BE VERY HIGH, ONLY THE OWNERS OF HOMES AND LOTS IN THIS COMMUNITY WILL SHARE THESE EXPENSES. TAX DOLLARS WILL NOT BE USED. THE MEMBERS MUST ALSO PAY FOR THE COST OF LIABILITY INSURANCE AND TRAFFIC ENFORCEMENT ON THE COMMUNITY'S ROADS. (c) UNDER FLORIDA LAW, NO REDUCTION IN YOUR TAX BURDEN WILL RESULT FROM LIVING IN THIS COMMUNITY. (d) MEMBERS OF THIS COMMUNITY, THROUGH THEIR MANDATORY HOMEOWNERS ASSOCIATION, MUST SET ASIDE ADEQUATE RESERVES TO PROPERLY MAINTAIN, REPAIR AND REPLACE THE ROADS, SIDEWALKS AND DRAINAGE SYSTEM, AND MUST HAVE A PROFESSIONAL ENGINEER REGULARLY INSPECT THE ROADS, SIDEWALKS AND DRAINAGE SYSTEM AND REPORT WHAT WORK IS NECESSARY TO MAINTAIN AND/OR REPAIR THEM. THE MANDA TORY HOMEOWNERS ASSOCIATION IS OBLIGATED TO DO THE NECESSARY WORK REPORTED AND THE MEMBERS OF THE HOMEOWNERS ASSOCIATION PAY FOR THE WORK THROUGH THEIR ASSSESSMENTS. (e) THE EXTRA EXPENSES YOU INCUR TO MAINTAIN THE ROADS, SIDEWALKS AND DRAINAGE IN YOUR COMMUNITY ARE IN ADDITION TO OTHER EXPENSES CHARGED BY YOUR HOMEOWNERS ASSOCIATION TO PAY FOR THE PRIVATE RECREATIONAL, SECURITY AND OTHER AMENITIES AND SERVICES THE COMMUNITY MAY OFFER, INCLUDING THE COMMUNITY'S GATES. (f) AS WITH ANY ASSSESSMENT, THE FAILURE OR INABILITY TO PAY MAY LEAD TO A LIEN BEING PLACED ON YOUR HOME. IF A LIEN IS PLACED OR FORECLOSED, YOU COULD LOSE YOUR HOME. (g) THE HOMEOWNERS ASSOCIATION IS ALSO REQUIRED TO MAINTAIN LIABILITY INSURANCE ADEQUATE TO PAY CLAIMS FOR INJURIES U:\efemandez\CLlENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.lO (Crestwood Heights).doc 36 AND PROPERTY DAMAGE ARISING ON THE PRIVATE ROADWAY, SIDEWALKS, DRAINAGE PONDS, AND OTHER COMMON AREAS IN THE NEIGHBORHOOD. (h) IF THE CITY OF OCOEE DETERMINES THAT THE COMMUNITY IS NOT MEETING ITS OBLIGATIONS, IT MAY REVOKE THE COMMUNITY'S PRIVILEGE TO CLOSE ITS GATES SO THAT THE ROADS IN THE COMMUNITY BECOME AVAILABLE FOR PUBLIC USE. (i) IF THE COMMUNITY FAILS TO MAINTAIN ITS ROADS, SIDEWALKS AND DRAINAGE SYSTEM, THE CITY OF OCOEE MAY REQUIRE THAT THE GATES BE REMOVED. IN THE EVENT THE GATES ARE REMOVED, AND THE ASSOCIA TION DEDICATES THE ROADS AND OTHER INFRASTRUCTURE TO THE CITY OF OCOEE, ALL COSTS AND EXPENSES WHICH THE CITY OF OCOEE INCURS FOR SUCH MAINTENANCE ARE RECOVERABLE FROM THE COMMUNITY. FUNDS WHICH HAVE BEEN SET ASIDE FOR THE COMMUNITY MAU BECOME THE PROPERTY OF THE CITY OF OCOEE, AND THE ROADS IN YOUR COMMUNITY SHALL PERMANENTLY BECOME OPEN TO THE PUBLIC. THE CITY OF OCOEE WILL NOT MAINTAIN YOUR RECREATIONAL, SECURITY AND OTHER AMENITIES UNDER ANY CIRCUMSTANCES. (j) BEFORE YOU SIGN A CONTRACT BE SURE THAT YOU RECEIVE WRITTEN INFORMATION ABOUT THE COST OF LIVING IN THIS COMMUNITY. IN WITNESS WHEREOF, the Declarant has caused this instrument to be duly executed the day and year first above written. ./ //Print Name: i/ :......" DECLARANT: MORRISON HOMES, INe., a Delaware corporation BY:~L~~ Name: L~ .~ (1:,. P-l"w.r5 As its: Division President U:\efemandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.l 0 (Crestwood Heights).doc 37 STATE OF FLORIDA COUNTY OF ORANGE The foregoi{f, iP:'.kent was acknowledged before mc this &. day otl12~r. 2004, byL-e.s./:e . ~ r::S, as Division President of Morrison Homes, Inc., a Delaware corporation, on behalf of the corporation, who ~ personally known to me or has produced (SEAL) .......' I' ....",,'. NICHOL BOLANDER \1 i~~A,..~.fP.~\ MY COMMISSION # DD 20~T16 \ ~*: ~;~ EXPIRES: July 31,200/ , '\; '."~.. ..~"..i B ded Thru Notaf)' PUblic Unuerwrl\'''' . ',: -:";:f,R~~~~" .. on "'~~J$..-S) as identification. ~f~~~ Print name: D ( () a -e Y My Commission Expires:/. 6 ( - 0 I U:lefemandezICLIENTS\Morrison Homes15667-518 (Crestwood Commons)\Declaration-v.l 0 (Crestwood Heights),doc 38 EXHffiIT "A" LEGAL DESCRIPTION Lot C, OCOEE COMMONS PUD, according to the plat thereof as recorded in Plat Book 60, Page 92, Public Records of Orange County, Florida, together with appurtenant easements described in Declaration of Easements, Covenants and Restrictions Lot C, Lot D1, Lot D2, Additional Blackwood Avenue Right of Way, Tract p, Lot Q and the Private Cross-Access, Drainage and Utility Easement recorded in March 30, 2005 in Official Records Book 7896, Page 722, Public Records of Orange County, Florida. SAID Lot C, OCOEE COMMONS PUD BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: Commence at the Southeast corner of Section 20, Township 22 South, Range 28 East; run thence NOO'27'27"E along the East line of the Southeast 1 /4 of said Section 20 a distance of 663.21 feet to the Point of Beginning; thence N89.09' 40"W a distance of 332.18 feet; thence SOO.26'01"W a distance of 182.67 feet; thence N89.23'09"W a distance of 133.30 -feet; thence N72.46'25"W a distance of 62.96 feet; thence N89.23'09"W a distance of 231.57 feet; thence N78.40'01"W a distance 'of 202.76 feet; thence N89.36'50"W a distance of 40.00 feet; thence NOO.23'10"E a distance of 71.53 feet to a point of curvature on a curve concave Southeasterly, having a radjus of 162.00 feet, a chord bearing of N30.39'28"E, a chord distance of 163.33 feet; run thence Northeasterly along the arc of said curve, through a central angle of 60.32'37", a distance of 171.18 feet to a point of curvature on a curve concave Northwesterly, having a radius of 112.00 feet, a chord bearing of N05.14' 43"E, a chord distance of 185.01 feet; run thence Northeasterly along- the arc of said curve through a central angle of 111.22'08" a distance of 217.70 feet; thence N50.26'21"W a distance of 55.00 feet; thence N39.33'39"E a distance of 185.67 feet to a point of curvature on a curve concave Southeasterly, having a radius of 570.00 feet, a chord bearing of N45.34'39"E, a chord distance of 119.49 feet; run thence Northeasterly along the arc of said curve, through a central angle of 12.02'00", a distance of 119.71 feet; thence N51.35'39"E a distance of 183.93 feet to a point of curvature on a curve concave Northwesterly, having a radius of 430.00 feet, a chord bearing of N46.27'50"E, a chord distance of 76.90 feet; run thence Northeasterly along the arc of said curve, through a central angle of 10.15'39", a distance of 77.01 feet to a point of curvature on a curve concave Southeasterly, having a radius of 25.00 feet, a chord bearing of N6T21'41"E, a chord distance of 21.94 feet; run thence Northeasterly along the arc of said curve, through a central angle of 52"03'21", a distance of 22.71 feet to a point of curvature on a curve concave Northwesterly, having a radius of 78.00 feet, a chord bearing of N7T38'26"E, a chord distance of 42.34 feet; run thence Northeasterly along the arc of said curve, through a central angle of 31.29'50" ,a distance of 42.88 feet to a point of curvature on a curve concave Southwesterly, having a radius of 25.00 feet, a chord bearing of S89.14' 44"E, a chord distance of 24.14 feet; run thence Southeasterly along the arc of said curve, through a central angle of 5T43'31", a distance of 25.19 feet; thence S60'22'59"E a distance of 322.1 0 fe~t to a point of curvature on a curve concave Southwesterly, . having a radius of 340.00 feet, a chord bearing of S29.57'47"E a chord distance of 344.31 feet; run thence Southeasterly along the arc of said curve, through a central angle of 60.50'24", a distance of 361.03 feet to the East line of the Southeast 1/4 of said Section 20; thence SOO.27'27"W along the East line of the Southeast 1 /4 of said Section 20 a distance of 269.90 feet to the Point of Beginning. Containing 14.438 acres or 628,898 square feet more or less. U :\efernandez\CLIENTS\Morrison Homes\5667 -518 (Crestwood Commons )\Declaration-v.1 0 (Crestwood Heights ).doc EXHIBIT "B" ARTICLES OF INCORPORATION (see attached) U:\efernandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Dec1aration-v.1O (Crestwood Heights).doc EXHIBIT "C" BY-LA WS (see attached) U:\efernandez\CLIENTS\Morrison Homes\5667-518 (Crestwood Commons)\Declaration-v.lO (Crestwood Heights).doc .'.- ,...- - '.-'. I a ~: :. '-" .. '" ----=-,' . ~"i:":', itpartmrttt of &tatr I certify the attached is a true and correct copy of the Articles of Incorporation of CRESTWOOD HEIGHTS TOWNHOMES OWNERS ASSOCIATION, INC., a Florida corporation, filed on June 24, 20051 as shown by the records of this office. The document number of this corporation is N05000006675. Given under my hand and the Great Seal of the State of Florida at Tallahassee, the Capitol, this the Fifteenth day of July, 2005 CR2E022 (2-03) LiA. [. ~ ~l.enou '!Ji~ ~o.o ~.ecrdarR af~tate ~lil/?I/l',..l ,ro". ',," ' J ',~. . <2Pa // .' (rJ-J '('. , V.l~ .["'-. , ...e."'(' "., . " ..? ,,:" . ..,<( <'i/-_ ~ (..; -'f "/' 4..:.- '/t4~"?" 'T CRESTWOOD HEIGliTS TOWNHOMES OWNERS ASSOCIATION, INC., S';S&&~"' <9.,.$() "':,1:'; ,,)); ..:T '(. L>l(<l }o. 'V~y ~ -lY~ ARTICLES OF INCORPORATION OF a Florida corporation not for profit In compliance with the requirements of Florida Statute 617, the undersigned, who is a resident ofthe State of Florida, and who is of full age, for the purpose offanning a Florida corporation not for profit, 11ereby cenifies; ARTICLE I - NAME OF CORPORATION The name of the corporation is CRESTWOOD HEIGHTS TOWNHOMES OWNERS AS SOCIA TION, IN C., a corporation not for profit under the provisions of Chapter 617 of the Florida Statutes (hereinafter referred to as the "Association"). ARTICLE II - PRINCIPAL OFFICE OF THE ASSOCIATION The initial principal office of the Association is located at 61 West Colonial Drive, Orlando, Florida 32801, or other location designated by the Board of Directors. ARTICLE III - REGISTERED AGENT AND REG1STERED OFFICE JESSE E. GRAHAM~ JR., ESQ. with an office at 3 69 North New York A venue~ Th ird Floor~ Winter Park, FL 32789, is hereby appointed the initial Registered Agent of this Association. ARTICLE IV PURPOSE AND POWERS OF THE ASSOCIATION This Association does not contemplate pecuniary gain or profit to the members thereof, and the specific purposes for which it is formed are to provide for the maintenance, preservation and architectural control of the Lots, Streets, and Common Area within that Property described as: CRESTWOOD HEIGHTS, according to the plat thereof recorded or to be recorded in the Public Records of Orange County, Florida, together with such Additional Property located in Orange County, Florida, which may be brought within the jurisdiction of the Association from time to time, as provided in the "Declaration" referred to hereinbelow, and to promote the health, safety and welfare of the residents within the above described property and any additions thereto as may hereafter be brought within the jurisdiction of this Association for this purpose to: A. exercise of all of the powers and privileges and to perform all of the duties and obligations of tho Association as set forth in that certain Declaration of Covenants, Conditions and Restrictions for Lake Mary Townhomes, hereinafter called the "Declaration", applicable to the Property and recorded Or to be 1 U:\eferL'lantlez\CLlENTS\Morrison Homcs\5667.S18 (Crestwood Commons)\AJ1iclcs.Crestwood v.6 (Crcstwood Heights). DOC 1.0'd ).17 ,qr CDlDl?_J D1_,nl" recorded in the Public Records of Orange County, Florida, as the same may be amended fTom time to time as therein provided, said Declaration being incorporated herein as if set forth at length (all capitaiized terms, unless otherwise provided herein, shall have the same meaning as defined in the Declaration) and pursuant to Chapter 720, Florida Statutes; B. fix, levy, coHeet, and enforce payment by any lawful means, all charges or assessments pursuant to the terms of the Declaration; to pay all expenses in connection therewith and all office and other expenses incident to the conduct of the business of the Association, including all licenses, taxes or governmental charges levied Or imposed against the property of the Association; C. acquire (by gift, purchase or otherwise), own, hold, improve, build upon, operate, maintain, convey, sell, lease, transfer, dedicate for public use Or otherwise dispose of real or personal property in connection with the affairs of the Association; D. borrow money, and with the assent of two"thirds (2/3) of the Lot Owners (excluding the Declarant), mortgage or pledge, any Or all of its real Or personal property as security for money borrowed or debts incurred; E. dedicate, sell 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 Members. No such dedication or transfer shall be effective unless an instrument has been signed by two-thirds (2/3) of the Lot Owners (excluding the Declarant), agreeing to such dedication, sale or transfer, provided; however, the Association shall have the right to grant permits, easements or licenses to a public agency or utility company for utilities, roads, other purposes reasonably necessary or useful for the proper maintenance or operation of the property, which grants shall not be deemed a dedication, sale or transfer requiring the consent of Members; F. participate in mergers and consolidations with other nonprofit corporations organ.ized for the SaIne purposes or annex additional residential property and Common Area, provided than any such merger, consolidation, or annexation shall comply with the requirements of the Declaration; G. have and to exercise ,my and all powers, rights and privileges whjch a corporation organized under Florida Not For Profit Corporation Act by law may now Or hereafter have or exercise; H. operate; maintain and manage the Surface Water or Stom1water Management System in a manner consistent with the S1. Johns River Water Management District Permit No. requirements and applicable District rules, and shall assist in the enforcement of the restrictions and covenants contained herein. The Association shall levy and collect adequate assessments against Membe{$ of the Association for the mainteml11ce, operation and repair of the Surface Water or Stormwater Management Systems inclUding but not limited to work within retention areas, drainage structures and drainage easements; r. operate, maintain and manage the Common Area. The Association shall levy and collect adequate assessments against Members ofthe Association for the maintenance of the Common Area; duties: J. with respect to the surface water management system; the Association shall have the following (I) Each property owner shall be responsible for his pro rata share of the maintenance, operation and repair of the surface water or stormwa.ter management system. nSurface Water or Storm water Management System" means a system which is designed and constructed or implemented to control discharges 2 U:\efemandez\CLlENTS\MorrisOll Homes\5667-518 (Crcstwood Commons)\A.rticles-CreSlWOod v.6 (Crestwood Heights).DOC i=l1/l',...I which are necessitated by rainfall events, incorporating methods to collect, convey, store, absorb, inhibit) treat, use or reuse water to prevent or reduce flooding, oYer~drainage, environmental degradation, and water pollution or otherwise affect the quantity and quality of discharges from the system, as permitted pursuant to Chapters 40C-4, 40C-40, or 40C-42, F.A.C. (2) Maintenance ofthe surface water or stormwater management system(s) shall mean the exercise of practices which allow the systems to provide drainage, water storage, conveyance or other surface water Or stonnwater management capabilities as permitted by the St. J ohng River Water Management District. Each property owner shall be responsible for such maintenance and operation. Any repair or reconstruction of the surface water or stormwater management system shall be as permitted, or ifmodified as approved by the St. Johns River Water Management District. (3) Any amendment to the Deed Restriction which alters the surface water or stormwater management system, beyond maintenance in its original condition, including the water management portions of the common areas, must have the prior approval of the St. Johns River Water Management District. (4) The St. Johns River Water Management District shall have the right to enforce, by a proceeding at law or in equity, the provisions contained in this Deed Restriction which relate to the maintenance, operation, and repair of the surface water or stolmwater management system. ARTICLE V - MEMBERSHIP Every person or entity who is a record owner of a fee or undivided fee interest in any Lot which is subject by covenants of record to assessment by the Association, including contract sellers, shall be a Member of the Association. TIle foregoing is not intended to include persons or entities who hold an interest merely as security fOr the perfonnance of any obligation. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment by the Association. ARTICLE VI - VOTING RIGHTS The Association shall have two (2) classes of voting membership: A. Class A. Class A Members shall be all Owners, with the exception of the Declarant, and shall be entitled to one (1) vote for each Lot owned. When more than one (l) person holds an interest in any Lot, all such persons shall be Members. The vote for such Lot shall be exercised as they detennine, but in no event shall more than one (1) vote be cast with respect to any Lot. When reference is made herein or in the Association Bylaws to a majority or a specific percentage or fraction of Members to establish a quorum or to carry a vote, such references shall be deemed to mean and refer to such majority, percentage or fraction entitled to vote On the basis of one (1) vote per Lot. B. Class B. The Class B Member shall be the 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 any of the following events, whichever occurs earlier: (1) three (3) months after ninety percent (90%) of the maximum number of residential Lots allowed for the Property have been conveyed to Class A Members; 3 U:\efemandcz\CUENTS\Morrison Homes\5667-51 a (Crcstwood Commons)\Articles.Crestwood Y.6 (Crcstwood Heights).DOC (2) ten (1 0) years after the date of the recording of the Declaration in the Public Records of Orange County, Florida; and (3) upon voluntary conversion to Class A Membership by the Declarant. Notwithstanding the cessation of Class B Membership in accordance with the above, if Additional Property is made subject to this Declaration, Class B Membership shall be reinstated for all Lots owned by Declarant so long as ninety percent (90%) of the then total number of Lots has not been deeded to Class A Members. ARTICLE VII - BOARD OF DIRECTORS The affairs ofthis Association shall be managed by a Board of not more than seven (7) directors, who need not be Members of the Association. The initial number of Directors shall be three (3) and may be changed by amendment of the By-Laws of the Association. The names and address oftbe persons who are to act in the capacity of Directors until the selection of their successors are: NAME ADDRE~ Becky Boucher Nichol Bolander William Steen 151 Southhall Lane, Suite 200, Maitland, FL 32751 151 Southhall Lane, Suite 200, Maitland, FL 32751 151 Southhall Lane, Suite 200, Maitland, FL 32751 At the first annual meeting, the Members shall elect one (1) Director for a term of one (1) year, one Director for a term of two (2) years and one (1) Director for a term of three (3) years; and at each annual meeting thereafter the Members shall eject one (1) Director for a term of three (3) years. In the event the number of Directors is more than three (3), additional Directors shall be ejected for a term of three (3) years. The Declarant is entitled to elect Or appoint at least One (1) Director as long as Declarant holds for sale in the ordinary course of business at least five percent (5%) of the Lots. ARTICLE VIII - INCORPORATOR The name and address ofthe incorporator of these Articles ofIncorporation is as follows: NAME ADDRESS MORRISON HOMES, INC. 151 SouthhaIl Lane, Suite 200 Maitland, Florida 32751 ARTICLE IX - OFFICERS The affairs of the Association shall be administered by the Officers designated in the By-Laws of the Association as shall be elected by the Board of Directors at its first meeting following the first annual meeting of the general Mem bership and they shall serve at the pleasure ofth~ Board of Directors. Pending the election 4 U:\cfcrnandoz\CUF.NTS\Morrison Homes\S667-SI8 (Crcstwood Commons)\Articlcs-Creslwood v.6 (Cl'cstwood Hcights).DOC of the pem1anent Officers ofthis Association by the Board of Directors, the following named persons shall be the temporary Officers of the Association until their successors have been duly elected: TITLE NAME President Vice President Secretary/Treasurer Becky Boucher Nichol Bolander William Steen ARTICLE X - BY-LAWS By-Laws of the Association will be hereinafter adopted at the fIrst meeting of the Board of Directors. Such By-Laws may be amended or repealed, in whole or in part, at a regular or special meeting of the Members, by a vote of a majority of a quorum of Members present in person or by proxy. ARTICLE XI ~ DISSOLUTION The Association may be dissolved with the assent given in writing and signed by not less than two- thirds (2/3) of each class of Members. Upon dissolution of the Association. other than incident to a merger or consolidation, the assets of the Association shall be dedicated to an appropriate public agency to be used for pUIposes similar to those for which this Association was created. In the event that such dedication is refused acceptance. such assets shall be granted, conveyed, and assigned to any nonprofit corporation, association, trust, or other organization to be devoted to such similat purposes. Tn the event oftermination) dissolution or final liquidation of the Association, the responsibility for the operation and maintenance of the Surface Water or Stonnwater Management System must be transferred to and accepted by an entity which would comply with S-ection 40C-42. 027. F.A. C., and be approved by the St. Johns River Water Management Distriot prior to such termination) dissolution or liquidation. TIle dissolution procedures described in this Article XI are also subject to court approval pursuant to the provisions of The Florida Not For Profit Corporation Act. ARTICLE XII - DURATION Existence of the Association shall commence with the fIling of these Articles of Incorporation with the Secretary of State) Tallahassee, Florida. The Association shall exist in perperuity. ARTICLE XIII - AMENDMENTS Amendment of these Alticles of Incorporation shall require the approval of at least two-thirds (2/3) vote of t11e Lot Owners. ARTICLE XIV - CONFLICT In the event that any provision of these Articles of Incorporation conflicts with any provision of Declaration, the provision of Declaration in conflict therewith shall control. Ifany provision of these Articles ofIncorporation conflicts with any provision of the Bylaws, the provisions of these Articles of Incorporation shall controL 5 U:\cfcmalldez\CLIENTS\Morrisoll Homes\5667-518 (CreslWood Common$)\Articles.CreStwood v,6 (Crestwood lieights),DOC ARTICLE XV - lNDEMNIFICA nON The Directors and Officers of the Association shall be indemnified by the Association to the fullest extent now or hereafter permitted by law and shall not be personally liable for any act, debt, liability 01' other obligation of the Association. Similarly, Members are not personally liable for any act, debt, liability or obligation of the Association. A Member may become liable to the Association for assessments, fees. etc. as provided in the Declaration or as otherwise provided by law. ARTICLE XVI- HUDN A APPROVAL AS long as there is a Class B Membership, the following actions will require the prior approval of HUDN A: annexation of additional properties, mergers and consolidations, m011gaging of Common Area, dedication of Common Area, dissolution and amendment of these Articles of Incorporation. IN WITNESS WHEREOF, for the purpose of forming this corporation under the laws of the State of Florida, the undersigned, being the Incorporator, has executed these Articles ofJncorporation, this8J- day of In -'- () y , 2005. Signed, sealed and delivered in the presence of: ~rxti~i ~W~I;~'~ INCORPORATOR: HOMES, INC., a Delaware Address: 151 Southhall Lane, Suite 200 Maitland, Florida 32751 STATE OF FLORIDA COUNTY OF ORANGE The foregoin i?s~~ent was acku? ledged before me this ~ day of -L1J 0;;;; , 2005, by Leslie Peters as the of Monison Homes, Inc., a Delaw . corporation, on behalf of the corporation, wl:to is personally known to me or has produced as identification. Notary Seal: NICHOL BOLANDER MY COMMISSION # OD 200376 EXPIRES: July 31, 2007 Bond~d Thru NOIaiy ~ub"~ UndetwtilBrs ( 6 U:\efernandez\CLlENTS\Moll'isolll-lomes\S667_S 18 (Crc.~twood COll'Jmons)\A!ticlcs-Cr~twood v.6 (Cte~twocd licights),DOC ,U'd ll:llOl CERTIFICATE DESIGNATING PLACE OF BUSINESS OR DOMICILE FOR THE SERVICE OF PROCESS WIT.8lN THIS STATE NAMING AGENT UPON WHOM PROCESS MAY BE SERVED In pursuance of Sections 48.091 and 617.0501, Florida Statutes, the following is submitted, in compliance with said act FIRST, that CRESTWOOD HEIGHTS TOWNHOMES OWNERS ASSOC1A nON, INC., des iring to organize under the laws of the State of Florida with its principal office, as indicated in the Articles of Incorporation, at 151 Southhall Lane, Suite 200, Maitland, Florida 32751 has named Jesse E. Graham, Jr., located at 369 North New Y ork Avenue, Third Floor, Winter Park, County of Orange, State of Florida as its agent to accept service of process within this state. Having been named to accept service ofpfocess for the above.stated corporation, at place designated in this Certificate, I hereby accept to act in this capacity, and agree to comply with the provision of said Act relative to keeping open said office_ ~ Dated: ..J .......-.- (7 , 2005 jI,. ~ :5 r-! o;-J'l -ri I'"'" l c.... ,..-. ~'. c:: :;: .... z _., >::;~~ N r" w'O<:' tf;l::;::;: .- ,.".-< P'. I"'l~' > ~ -n"""t"! :x j pt'r..... a) it~ .. ""'" .:;n . , \.0 7 U:lcfcmandez\CLlENiS\Mouison Homcs\5067-S18 (Crestwood Commons)\Articlcs.Cr~stwood v.6 (Crcstwood Hcights),DOC ~T.'.-I L~.nT r~nJ I~ ~M~ EXHIBIT "e" BY-LA WS OF CRESTWOOD HEIGHTS TOWNHOMES OWNERS ASSOCIATION, INC. Section 1. Identification of Association. These are the By-Laws of CREST WOOD HEIGHTS TOWNHOMES OWNERS ASSOCIATION, INe. (hereinafter referred to as the "Association"), as duly adopted by its Board of Directors. The Association is a corporation not -for-profit, organized pursuant to and under Chapter 617, Florida Statutes. The Association has been incorporated in connection with the creation of that certain Development (the "Development") known as CRESTWOOD HEIGHTS, as evidenced by that certain Declaration of Covenants, Conditions, and Restrictions (the "Declaration") recorded or to be recorded in the Public Records of Orange County, Florida. All terms and definitions as set forth in Article I of the Declaration are incorporated herein and made a part hereof. 1.1 The office of the Association shall be for the present at 61 West Colonial Drive, Orlando, Florida 32801 and thereafter may be located at any place in Orange County, Florida, designated by the Board of Directors of the Association. 1.2 The fiscal year of the Association shall be the calendar year, unless a different fiscal year is adopted by the Board. 1.3 The seal of the Association shall bear the name of the Association, the word "Florida," and the words "Corporation Not-For-Profit." Section 2. Membership in the Association, Members Meetin2s, V otin2 and Proxies. 2.1 The qualifications of Members, the manner of their admission to membership in the Association, and the manner of the termination of such membership shall be as set forth in Article IV of the Articles of Incorporation of the Association. 2.2 The Members shall meet annually at the office of the Association or such other place in Florida, as determined by the Board and as designated in the Notice of such meetings, at the time determined by the Board, within ninety (90) days before each year-end (calendar or fiscal year-end as determined by the Board) commencing with the year 2006. Such meetings shall be known as the "Annual Members Meeting." The purpose of the Annual Members Meeting shall be to elect directors, to hear reports of the officers, and to transact any other business authorized to be transacted by the Members. 2.3 Special meetings of the Members shall be held at any place within Orange County, whenever called by the President, Vice President, or a majority of the Board. A special meeting must be called by the President or Vice President upon receipt of a written request from one-fourth (1/4) of the Members. 1 U:lefemandezlCLIENTSlMorrison Homes15667-518 (Crestwood Commons)\By-Laws (Exhibit C)-v.3 (Crestwood Heights).doc 2.4 A written notice of the meeting (whether the Annual Members Meeting or a special meeting of the Members) shall be mailed to each Member entitled to vote at his last known address as it appears on the books of the Association. Such written notice of an Annual Members Meeting shall be mailed to each Member not less than fourteen (14) days nor more than forty (40) days prior to the date of the Annual Members Meeting. Written notice of a special meeting of the Members shall be mailed not less than ten (10) days nor more than forty (40) days prior to the date of a special meeting. The notice shall state the time and place of such meeting and the object for which the meeting is called and shall be signed by an officer of the Association. If a meeting of the Members, either a special meeting or an Annual Members Meeting, is one for which, by express provision of the Articles or these By-Laws, there is permitted or required a greater or lesser amount of time for the mailing or posting of notice than is required or permitted by the provisions of this Section 2.4, then the aforesaid express provision shall govern. Any provision herein to the contrary notwithstanding, notice of any meeting may be waived by any Member before, during, or after a meeting, which waiver shall be in writing and shall set forth a waiver of written notice of such meeting. The aforementioned procedure shall not apply in the event of an emergency. 2.5 The Members, at the discretion of the Board, may act by written agreement in lieu of a meeting, provided written notice of the matter or matters to be agreed upon is given to the Members, at the addresses and within the time periods set forth in Section 2.4 herein, or duly waived in accordance with such Section. The decision of the majority vote of the Members as to the matter or matters to be agreed upon (as evidenced by written response to be solicited in the notice) shall be binding on the Members, provided a quorum of the Members submits a response. The notice shall set forth a time period during which time a response must be made by a Member. 2.6 A quorum of the Members shall consist of persons entitled to cast ten percent (10%) of the votes of the Members. A Member may join in the action of a meeting by signing and concurring in the minutes thereof and such a signing shall constitute the presence of such parties for the purpose of determining a quorum. When a quorum is present at any meeting and a question which raises the jurisdiction of such meeting is presented, the holders of a majority of the voting rights present in person or represented by written "proxy" (as hereinafter defined) shall be required to decide the question. However, if the question is one upon which, by express provisions of the Declaration, the Articles, or these By-Laws requires a vote of other than the majority vote of a quorum, then such express provision shall govern and control the required vote on the decision of such question. 2.7 If any meeting of the Members cannot be organized because a quorum is not in attendance, the Members who are present, either in person or by proxy, may adjourn the meeting to a date certain or otherwise from time to time until a quorum is present. In the case of a meeting being postponed, the notice provisions for the adjournment shall be as determined by the Board. In any such subsequent meetings, a quorum shall consist of one-fifth (1/5) of the votes of the Members. 2.8 Minutes of all meetings shall be kept in a businesslike manner and be available for inspection by the members and the Directors at all reasonable times and places and shall be produced within ten (10) business days after receipt of a written request for access. 2.9 Voting rights of Members shall be as stated in Section 2.10 below. Such votes maybe cast in person or by proxy. "Proxy" is defined to mean an instrument containing the appointment of a person who is substituted by a Member to vote for him and in his place and stead. Proxies shall be in writing and shall be valid only for the particular meeting designated therein, and any adjournments of that meeting. A proxy must 2 U:\efernandezICLlENTSIMorrison Homes\5667-518 (Crestwood Connnons)IBy-Lnws (Exhibit C)-v.3 (Crestwood Heights).doc be filed with the Secretary of the Association before the appointed time of the meeting in order to be effective. Any proxy may be revoked prior to the time a vote is cast according to such proxy. 2.10 The following provisions shall govern the right of each Member to vote and the manner of exercising such right: (a) Each Owner or the collec~ive Owners of a Lot of record shall be entitled to one (1) vote in the Association with respect to matters on which a vote by the Owners is required or permitted to be taken under the Declaration, the Articles or these By-Laws. (b) The vote of the Owners of a Lot owned by more than one natural person, or by a corporation or other legal entity, shall be cast by the person named in a certificate executed by all of the Owners of the Lot, or if appropriate, by properly designated officers, partners, or principals of the legal entity, and filed with the Secretary of the Association. If such a certificate is not on file with the Secretary of the Association, the vote of such Lot shall not be considered for a quorum or for any other purpose. (c) Notwithstanding the provisions of paragraph (b) ofthis Section 2.10, whenever any Lot is owned by a husband and wife, they may, but shall not be required to, designate a voting member. In the event a certificate designating a voting member is not filed by a husband and wife, the following provisions shall govern their right to vote: (1) Where both are present at a meeting, each shall be regarded as the agent and proxy of the other for purposes of casting the vote for each Lot owned by them. In the event they are unable to concur in their decision upon any subject requiring a vote, they shall lose their right to vote on that subject at the meeting. (2) Where only one (1) spouse is present at a meeting, the person present may cast the vote for the Lot without establishing the concurrence of the other spouse, absent any prior written notice to the contrary by the other spouse. In the event of prior notice to the contrary to the Association or the designation of a different proxy by the other spouse, the vote of said Lot shall not be considered. (d) In the event that any Owner shall fail to pay Assessments within ten (10) days after he has been notified in writing by the Association that such Assessments are due, the vote of the Lot owned by such Owner shall be terminated until such Assessment plus interest thereon and costs of collection thereof are paid to the Association. (e) The foregoing provisions shall not apply to the Declarant named in the Declaration and the Declarant's successors and assigns. 2.11 At any time prior to a vote upon any matter at a meeting of the Members, any Member may demand the use of a secret written ballot for voting on such matter. The Chairman of the meeting shall call for nominations for inspectors of election to collect and tally written ballots upon the completion of balloting upon the subject matter. Section 3. Board of Directors~ Director's Meetines. 3.1 The form of administration of the Association shall be by aBoard of not less than three (3) Directors nor more than seven (7) Directors, the exact amount to be determined from time to time by the 3 U:\efemandez\CLIENTSIMorrison Homes\5667-51S (Crestwood Commons)\By-Laws (Exhibit C)-v.3 (Crestwood Heights),doc Members in accordance with the Declaration, or the Articles. The Board shall initially consist of three (3) members, who need not be members of the Association. 3.2 The provisions of the Articles setting forth the selection, election, designation and removal of Directors by the Declarant are hereby incorporated herein by reference. 3.3 Subject to Section 3.5 below and to the Declarant's rights as set forth in the Articles and as set forth in Section 3.5(c) below, vacancies in the Board shall be filled by persons elected by the remaining Directors. Any such person shall be a Director as if, and have all of the rights, privileges, duties and obligations as a Director, elected at an Annual Members Meeting, and shall serve for the term prescribed in Section 3.4 of these By-Laws. 3.4 The term of each Director's services shall extend until the next Annual Members Meeting and until his successor is duly elected and qualified, or until he is removed in the manner elsewhere provided herein. 3.5 (a) A Director elected by the Members, as provided in the Articles, may be removed from office upon the affirmative vote or the agreement in writing of a majority vote of the Members at a special meeting of the Members for any reason deemed by the Members to be in the best interests of the Association. A meeting of Members to so remove a Director elected by them shall be held, subject to the notice provisions of Section 2.4 hereof, upon written request of ten percent (10%) of the Members. However, before any Director is removed from office, he shall be notified in writing that a motion to remove him will be made prior to the meeting at which said motion is to be made, and such Director shall be given an opportunity to be heard at such meeting should he be present prior to the vote on his removal. In the event the members hold a special meeting to remove a director or directors, the Board shall hold a Board meeting within five (5) full business days after the adjournment of the member meeting to remove one or more directors. At the meeting, the Board shall certify the removal, in which case such member or members shall be removed effective immediately and shall turn over to the Board within five (5) full business days any and all records and property of the Association in their possession. (b) A Director elected by the members, as provided in the Articles, may also be removed from office by an agreement in writing or by written ballot without a membership meeting. The agreement in writing or the written ballots, or a copy thereof, shall be served on the Association by certified mail or by personal service in the manner authorized by Florida Statutes Chapter 48 and the Florida Rules of Civil Procedure. (c) If the Board determines it will not to certify the written agreement or written ballots to remove a director or directors of the Board or does not certify the removal by a vote at a meeting, the Board shall, within five (5) full business days after the meeting, file with the Florida Department of Business and Professional Regulation a petition for binding arbitration pursuant to the applicable procedures contained in Florida Statutes Sections 718.112(2)0) and 718.1255 in the rules adopted there under. If the arbitrator certifies the removal as to any director or directors of the Board, the removal will be effective upon mailing of the final order of arbitration to the Association. The director or directors so removed shall deliver to the Board any and all records of the Association in their possession within five (5) full business days after the effective date of the removal. 4 U:lefernandezlCLlENTSlMorrison Homes\5667-518 (Crestwood Commons)\By-Laws (Exhibit C)-v.3 (Crestwood Heights).doc (d) If the Board fails to duly notice and hold a board meeting within five (5) full business days after the service of an agreement in writing or within five full business days after the adjournment of the member removal meeting, the removal shall be deemed effective and the director so removed shall immediately turn over to the Board all records and property of the Association. (e) Minutes of all meetings of the Board related to removal of a director or directors shall be kept in a business like manner and be available for inspection by the Members and Directors at all reasonable times and places and produced within ten (10) business days after receipt of a written request for access. (f) In the event a Director is removed from office without a membership meeting the board shall hold a meeting, subject to the notice provisions contained in Section 2.4 herein above. Said meeting shall be held within five (5) days after the members deliver the agreement in writing or the written ballots to the Association. At the meeting the Board shall either certify the written ballots or written agreement to remove a director or directors of the Board, in which case such director or directors shall be removed effective immediately and shall turn over to the board within five (5) full business days any and all records and property of the Association in their possession. (g) Members shall elect, at a special meeting or at the Annual Members Meeting, persons to fill vacancies to the Board caused by the removal of a Director elected by Members in accordance with Sections 3.5(a) and (b) above. (h) A Director designated by Declarant, as provided in the Articles, may be removed only by Declarant in its sole and absolute discretion and without any need for a meeting or vote. The Declarant shall have the unqualified right to name a successor for any Director designated and thereafter removed by it, and Declarant shall notify the Board of the name of the successor Director and the commencement date for the term of such successor Director. (i) In the event a Director not designated by the Declarant shall fail to pay Assessments within ten (10) days after he has been notified in writing by the Association that such Assessments are due, his Board membership shall automatically be terminated and if such Board member is an officer of the Board he shall automatically be discharged from his office. The provisions hereof shall not act to deprive the Declarant of its right to designate officers or Directors. 3.6 The organizational meeting of a newly elected Board shall be held within ten (10) days of their election at such place and time as shall be fixed by the Directors at the meeting at which they were elected. No further notice of the organizational meeting shall be necessary. 3.7 Regular meetings of the Board may be held at such time and place as shall be determined from time to time by a majority of the Directors. Special Meetings of the Board may be called at the discretion of the President or the Vice President of the Association. Special meetings must be called by the Secretary at the written request of one-third (1/3) of the Directors. 3.8 Notice of the time and place of regular and special meetings of the Board, or adjournments thereof, shall be given to each Director personally or by mail, telephone, or telegraph at least three (3) days prior to the day named for such meeting. Any Director may waive notice of a meeting before, during, or after a meeting, and such waiver shall be deemed equivalent to the receipt of notice by such Director. Notices of all board meetings shall be given to the Members of the Association, as provided by law. 5 U:lefernandezlCLlENTSlMorrison Homes\5667-518 (Crestwood Commons)\By-Laws (Exhibit C)-v.3 (Crestwood Heights).doc 3.9 A quorum of the Board shall consist of the Directors entitled to cast a majority of the votes of the entire Board. Matters approved by a majority of the Directors present at a meeting at which a quorum is present shall constitute the official acts of the Board, except as specifically otherwise provided in the Declaration, Articles, or elsewhere herein. If at any meeting of the Board, there shall be less than a quorum present, the majority of those present may adjourn the meeting from time to time until a quorum is present. At any meeting being held because of such an adjournment, any business which might have been transacted at the meeting as originally called may be transacted. In the case of the adjournment of a meeting, notice to the Directors of such adjournment shall be as determined by the Board. 3.10 The presiding officer at Board meetings shall be the President. 3.11 Director's fees, if any, shall be determined by a majority vote of the Members. 3.12 Minutes of all meetings ofthe Board shall be kept in a businesslike manner and be available for inspection by the Members and Directors at all reasonable times and places produced within ten business days after receipt of a written request for access. 3.13 The Board shall have the power to appoint various executive committees ofthe Board. Each committee shall act as a liaison to the Board and provide the Board with such information and reports as the Board may request. Executive committees shall consist of no more than three (3) persons. Executive committees shall have and exercise such powers as the Board may delegate to such executive committee. In addition to such executive committees of the Board, the Board may organize owners' committees in the Development consisting of no more than three (3) owners. Such committee shall be designated as a "non- official committee," and the Owners shall have no authority to act on behalf of the Board. However, the purpose of such Owners shall be to act as a liaison and to provide the Board with such information as the Board may deem appropriate and necessary to exercise its power. 3.14 Meetings of the Board shall be open to all Members. Unless a Member serves as a Director or unless he has been specifically invited by the Directors to participate in a meeting, Members shall not be entitled to participate in any meeting of the Board, but shall only be entitled to act as an observer. In the event that a Member not serving as a Director or not otherwise invited by the Directors to participate in a meeting attempts to become more than a mere observer at such meeting, or conducts himself in a manner detrimental to the carrying on of such meeting, then any Director may expel said Member from the meeting by any reasonable means which may be necessary to accomplish such an expulsion. Also, any Director shall have the right to exclude from any meeting of the Board any person who is not able to provide sufficient proof that he is a Member, unless said person was specifically invited by the Directors to participate in such meeting. Board members may attend a meeting via telephone conference call if a speaker phone is available so that all those present at the meeting can communicate. 3.15 The Directors shall have the right to take any action in the absence of a meeting which they could take at a meeting by obtaining the written approval of al the Directors. Any action so approved shall have the same effect as though taken at a meeting of the Directors. Section 4. Powers and Duties of the Board of Directors. All of the powers and duties of the Association including those existing under the Declaration, the Articles, and these By-Laws shall be exercised by the Board, unless otherwise specifically delegated therein to 6 U:lefernandezlCLlENTSlMorrison Homes\5667-518 (Crestwood Conunons)\By-Laws (Exhibit C)-v.3 (Crestwood Heights).doc the Members. Such powers and duties of the Board shall be exercised in accordance with the provisions of the Declaration and these By-Laws, and shall specifically include all powers designated in the Declaration, the Articles, and these By-Laws, including, without limitation, the following: 4.1 Making and collecting Special Assessments and Annual Assessments against Members (collectively "Assessments") in accordance with the Declaration. These Assessments shall be collected by the Association through payments made directly to it by the Members. 4.2 U sing the proceeds of Assessment in the exercise of the powers and duties of the Association and the Board. 4.3 Maintaining, repairing and operating the Development. 4.4 Reconstructing improvements after casualties and losses, and making further authorized improvements of the Development. 4.5 Making and amending Rules and Regulations with respect to the use of the Development. 4.6 Enforcing by legal means the provisions of the Declaration, the Articles, these By-Laws, and applicable provisions of law. 4.7 Contracting for the management and maintenance of the Development, and to authorize a management agent to assist the Association in carrying out its powers and duties by performing such functions as the submission of proposals, collection of Assessments, preparation of records, enforcement of rules, and maintenance, and repair and replacement of the Common Areas and the Lots with funds that shall be made available by the Association for such purposes and other services. 4.8 Paying taxes and Assessments which are or may become liens against the Common Areas, if any, and assessing the same against the Members. 4.9 Purchasing and carrying insurance for the protection of the Owners, the Board, and the Association against casualty and liability. 4.10 Paying costs of all power, water, sewer, and other utility serVIces rendered to the Development, and not billed to the Owners. 4.11 Hiring and retaining such employees as are necessary to administer and carry out the services required for the proper administration of the purposes of this Association, including the hiring of a resident manager and paying all salaries therefor. Section 5. Officers of the Association. 5.l The officers of the Association shall be a President, who shall be a Director, one (l) or more Vice Presidents, a Treasurer, and a Secretary, all of whom shall be elected annually by the Board. Any officer may be removed with or without cause from office by a vote of the Directors at any meeting of the Board. Any officer may resign at any time by giving written notice to the Board; such resignation shall take effect on the date of receipt of such notice or any later time specified therein, and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. The Board shall, from time to time, 7 U:lefernandezlCLlENTSlMorrison Homes\5667-518 (Crestwood Conunons)\By-Laws (Exhibit C)-v.3 (Crestwood Heights).doc elect such other officers and assistant officers and designate their powers and duties as the Board shall find to be required to manage the affairs of the Association. 5.2 The President shall be the chief executive officer of the Association. He shall have all of the powers and duties which are usually vested in the office of the President of an owner's association, including, but not limited to, the power to appoint such committees at such times from among the Members as he may, in his discretion, determine appropriate to assist in conducting the affairs of the Association. The President shall preside at all meetings of the Board. 5.3 In the absence or disability of the President, the Vice President shall exercise the powers and perform the duties of the President. The Vice President shall also generally assist the President and exercise such other powers and perform such other duties as shall be prescribed by the Board. In the event there shall be more than one (1) Vice President elected by the Board, then they shall be designated "First," "Second," etc., and shall exercise the powers and perform the duties of the President, in order. 5.4 The Secretary shall cause to be kept the minutes of all meetings of the Board and the Members, which minutes shall be kept in a businesslike manner and shall be available for inspection by Members and Directors at all reasonable times and places and produced within ten (10) business days after receipt of a written request for access. He shall have custody of the seal of the Association and shall affix the same to instruments requiring such seal when duly authorized and directed by the Board to do so. He shall keep the records of the Association, except those of the Treasurer, and shall perform all of the duties incident to the office of Secretary of the Association as may be required by the Board or the President. The Assistant Secretary, if any, shall perform the duties of the Secretary when the Secretary is absent, and shall assist the Secretary. 5.5 The Treasurer shall have custody of all of the property of the Association, including funds, securities, and evidences of indebtedness. He shall keep the assessment rolls and accounts of the Members, keep the books of the Association in accordance with generally accepted accounting practices, and shall perform all of the duties incident to the office of a Treasurer. The Assistant Treasurer, if any, shall perform the duties of the Treasurer whenever the Treasurer is absent, and shall assist the Treasurer. 5.6 The compensation, if any, of all officers and other employees of the Association shall be fixed by the Board. This provision shall not preclude the Board from employing a Director as an employee of the Association or preclude the contracting with a Director for the management of the Development. 5.7 The offices of Secretary and Treasurer may be held by the same person. No person shall simultaneously hold more than one (1) of any of the other offices. 5.8 A vacancy in any office may be filled by appointment by the Board. The officer appointed to such vacancy shall serve for the remainder of the term of the office he replaces. Section 6. Accountine Records; Fiscal Manaeement. 6.1 The Association shall maintain accounting records in accordance with generally accepted accounting practices which shall be open to inspection by the Members or their authorized representatives at reasonable times and places within ten (10) days after receipt of a written request for access. Such authorization as a representative of a Member must be in writing and signed by the Member giving such authorization and dated within sixty (60) days of the date of any such inspection. 8 U:lefernandezlCLlENTSlMorrison Homes15667-518 (Crestwood Conunons)\By-Laws (Exhibit C)-v.3 (Crestwood Heights).doc 6.2 (a) The Board shall adopt a budget for estimated revenues and expenses for each forthcoming fiscal year and the estimated surplus or deficit as of the end of the current year, the date of the Budget Meeting to adopt the budget to be determined by the Board. Prior to the Budget Meeting, a proposed Budget shall be prepared by or on behalf of the Board for the Development, which shall include, but not necessarily be limited to, the following items of expense: (1) Services (2) Utilities (3) Administration (4) Supplies and Materials (5) Insurance (6) Repairs, Replacement and Maintenance (7) Professional Fees (8) Reserve Funds (9) Operating Capital (10) Other Expenses In addition to the foregoing items of expense, the Budget(s) may include taxes, if the Board so determines. Copies of the proposed Budget and notice of the exact time and place of the Budget Meeting shall be mailed to each member at the Member's last known address, as reflected on the books and records of the Association, not less than thirty (30) days prior to said Budget Meeting. The Budget Meeting shall be open to the Members. The meeting may be held anywhere in Orange County, Florida as determined by the Board. (b) The Board may also include in such proposed Budgets, either annually, or from time to time as the Board shall determine to be necessary, a sum of money as an Assessment for the making of betterment to the Development and for anticipated expenses ofthe Association which are not anticipated to be incurred on a regular or annual basis. This sum of money so fixed may then be levied upon the members by the Board as Special Assessment. In addition, the Board shall, subject to the Declaration, include on an annual basis the establishment of reserve accounts for capital expenditures and deferred maintenance of the Development. (c) In administering the finances of the Association, the following procedures shall govern: (i) the fiscal year shall be the calendar year, unless a different fiscal year is adopted by the Board; (ii) any income received by the Association in any calendar year may be used by the Association to pay expenses incurred by the Association in the same calendar year; (iii) there shall be apportioned between calendar years on a pro rata basis any expenses which are prepaid in anyone calendar year for Common Expenses which cover more than such calendar year; (iv) Assessments shall be made annually in amounts no less than are required to provide funds in advance for payment of all of the anticipated current expenses, for all unpaid expenses previously incurred, and for the annual contribution to the reserve account(s) for any future expenditures and expenses which have been budgeted; and (v) Common Expenses incurred in a calendar year shall be charged against income for the same calendar year regardless of when the bill for such Common Expenses is received. Notwithstanding the foregoing, Assessments shall be of sufficient magnitude to insure an adequacy and availability of cash to meet all budgeted expenses and anticipated cash needs in any calendar year. 9 U:lefernandezlCLlENTSlMorrison Homes15667-518 (Crestwood Commons)\By-Laws (Exhibit C)-v.3 (Crestwood Heighls).doc (d) The depository of funds of the Association shall be such bank or banks as shall be designated from time to time by the Board in which the monies of the Association shall be deposited. Withdrawal of monies from such account shall be only by checks signed by such persons as are authorized by the Board. (e) A review of the accounts of the Association shall be made annually by an auditor, accountant, or Certified Public Accountant designated by the Board, and a copy of a report of such audit shall be furnished to each Director no later than the first day of April of the year following the year for which the report is made. The report shall be deemed to be furnished to the Director upon its delivery or mailing to the Director at his last known address as shown on the books and records of the Association. (f) No Board shall be required to anticipate revenue from Assessments or expend funds to pay for Common Expenses not included in the Budget or which shall exceed budgeted items, and no Board shall be required to engage in deficit spending. Should there exist any deficiency which results form there being greater Common Expenses than income from Assessments, then such deficits shall be carried into the next succeeding year's Budget as a deficiency or shall be the subject of a Special Assessment to be levied by the Board as otherwise provided in the Declaration. (g) The Association shall prepare an annual report within sixty (60) days after the close of the fiscal year. The Association shall, within ten (l 0) days after receipt of a written request for access, provide each member with a copy of the annual financial report or a written notice that a copy of the financial report is available upon request at no charge to the member. The financial report must consist of either (i) financial statements presented in conformity with general accepted accounting principals; or (ii) a financial report of actual receipts and expenditures, cash basis, which must show: the amount of receipts and expenditures by classification, and the beginning and ending cash balances of the Association. 6.3 The Association shall collect Annual Assessments and Special Assessments from the Owners in the manner set forth in the Declaration, the Articles, and these By-Laws. 6.4 As more fully described in the Declaration, each Member is obligated to pay to the Association Annual and Special Assessments which are secured by a continuing lien upon the property against which the assessment is made, and which are the personal obligation of the Member. 6.5 The fiscal year of the Association shall begin on the first day of January and end on the 3l st day of December of every year, except that the first fiscal year shall begin on the date of incorporation. Section 7. Rules and Reeulations. The Board may adopt Rules and Regulations, or amend or rescind existing Rules and Regulations, for the operation and the use of the Development at any meeting of the Board; provided, however, that such Rules and Regulations are not inconsistent with the Declaration, the Articles, or these By-Laws. Section 8. Amendment of the Bv-Laws. 8.1 These By-Laws may be amended by a majority vote of the Members present at an Annual Members Meeting or a special meeting of the Members and the affirmative approval of a majority of the Board at a regular or special meeting of the Board. A copy of the proposed amendment shall be sent to each Member 10 U:lefernandezlCLlENTSlMorrison Homes\5667-518 (Crestwood Conunons)IBy-Laws (Exhibil C)-v.3 (Creslwood Heights).doc along with the notice of the special meeting of the Members or Annual Members Meeting. An amendment may be approved at the same meeting of the Board and/or the Members at which such amendment is proposed. 8.2 An amendment may be proposed by either the Board or by the Members, and after being proposed and approved by one of such bodies, it must be approved by the other as above set forth in order to become enacted as an amendment. 8.3 No modification or amendment to these By-Laws shall be adopted which would affect or impair the priority of any Preferred Lender as that term is defined in the Declaration ,the validity of the mortgage held by any such Preferred Lender as that term is defined in the Declaration, or any of the rights of the Declarant. 8.4 As long as there is a Class B membership, as that term is defined in the Declaration, no modification or amendment to these By-Laws shall be adopted without the prior consent of the Federal Housing Administration and the Veterans Administration. Section 9. Corporate Seal. The Association shall have a seal in a circular form having within its circumference the words: CRESTWOOD HEIGHTS TOWNHOMES OWNERS ASSOCIATION, INe., a Florida corporation not-for- profit 2005. CRESTWOOD HEIGHTS TOWNHOMES OWNERS ASSOCIATION, INe., a Florida corporation not-for-profit By: Print Name: As its: Attest: By: Print Name: As its: (CORPORATE SEAL) II U:\efernandez\CUENTS\Morrison Homes\5667-518 (Crestwood Commons)\By-Laws (Exhibit C)-v.3 (Crestwood Heighls).doc