A Residential Townhome Community

DECLARATION OF

COVENANTS, CONDITIONS & RESTRICTIONS

FOR

THE OAKS OF CORNERSTONE TOWN HOMES

(Phase I)

 

TABLE OF CONTENTS

I         Definitions

1.1. Articles Of Incorporation Or Articles                                                  2

1.2. Association                                          2

1.3. By-Laws                                                                                 2

1.4. Common Area                                         2

1.5. Common Expenses                                                                 3

1.6. Declarant                                                                               3

1.7. Lot                                                                                         3

1.8. Member                                                                                           3

1.9. Mortgage                                                                               3

1.10. Mortgagee                                                                            3

1.11. Owner                                                                                    3

1.12. Person                                                                                                    3

1.13. Property                                             3

1.14. Rules And Regulations                                                           3

1.15. Single Family                                                                                          3

1.16. Subdivision                                                                                              4

1.17. Cornerstone Village North Section 2 Covenants            4

II          Establishment Of General Plan

2.1. General Plan And Declaration                                                                   4

2.2. Equitable Servitudes                                                                     4

2.3. Covenants Appurtenant                                                           4

2.4. Annexation Of Additional Properties                              4

2.5 Annexation Of Other Properties                              5

III       Management And Operation Of Subdivision

3.1. Management By Association                                                                    6

3.2. Board Of Directors                                                                  6

3.3. Membership                                                                               6

3.4. Power To Adopt Rules And Regulations                                    6

3.5. Implied Powers                                                                       7

IV       Voting Rights

4.1. Class "A Members                                                                  7

4.2. Class "B" Member                                                                   7

V       Property Rights

5.1. Members Easements Of Enjoyment                                                         7

5.2. Delegation Of Use                                     8

5.3. Title To The Common Area                                                                               8

VI       Assessments

6.1. Creation Of Assessments                                                                     8

6.2. Purpose Of The Annual Assessment                                             9

6.3. Annual Assessment                                                               10

6.4. Special Assessments                                                                           10

6.5. Lien For Assessments                                                                          11

6.6. Reserve Budget And Capital Contribution                                                     11

6.7. Subordination Of The Lien To First Mortgages                                  11

6.8. Exempt Property                                                                                                       12

VII   Insurance                                                                                        12

VIII   Party Walls

8.1. General Rules Of Law To Apply                                                              13

8.2. Sharing Of Repair And Maintenance                                                       13

8.3. Destruction By Fire Or Other Casualty                                                   13

8.4. Weatherproofing                                                                               13

8.5. Right To Contribution Runs With Land                                                      13

8.6. Arbitration                                                                                             13

IX       Architectural Control

9.1. Architectural Control Committee ("ACC")                                                                          14

9.2. Minimum Construction Standards                                                             14

9.3. No Waiver Of Future Approvals                                                                14

9.4. Variance                                                                                 14

9.5. Compliance With Guidelines                                                                 15

9.6. No Liability                                                                                  15

X       Exterior Maintenance                                                        15    

XI      Use Restrictions

11.1. General                                                                                 15

11. 2. Single Family Residential Use                                                                15

11.3 Vehicles                                                                                                                        16

11.4. Signs                                                                                      16

11. 5. Animals And Pets                                                                                                             17

11. 6. Quiet-Enjoyment                                                                            17

11.7. Antennas                                                                                  17

11. 8. Clotheslines, Storage Tanks, Etc.                                                          17

11. 9. Patios And Fences                                                             17

11.10. Subdivision Of Lot And Time Sharing                                                     18

11.11. Firearms                                                                                 18

11.12. Tents, Mobile Homes And Temporary Structures                                       18

11.13. Drainage And Septic Systems                                                             18

11.14. Dumping                                                                             18

11.15. Tree Removal                                                                     18

11.16. Business Use                                                                      18

11.17. On-Site Fuel Storage                                                           19

11.18. Leasing Of Lots                                                                  19

11.19. Laws And Ordinances                                                          20

11.20. Water And Mineral Operations                                             20

11.21. Care-Giving Facilities                                                           20

11.22. Garage, Yard And Estate Sales                                           20

11.23. Fixtures And Equipment Within A Townhome                         20

XII      Easements                                                                                    20

XIII     General Provisions

13.1. Duration                                                                               21

13.2. Amendment                                                                          22

13.3. Indemnification                                                                      22

13.5. Severability                                                                           22

13.6. Litigation                                                                               22

13.7. Compliance                                                                           23

13.8. Security                                                                                23

13.9. Number And Gender                                                    23

13.10. Delay In Enforcement                                                          23

13.11. Enforceability                                                                      23

13.13. Right Of Entry; Enforcement By Self Help                             23

13.12. Violations Of Law                                                                24

13.13. Remedies Cumulative                                                          24

13.14. No Representations Or Warranties                                       24

13.15. Limitation On Liability                                                           24

13.16. Captions For Convenience                                         24

13.17. Conflicts With Cornerstone Village North Section                   24

13.18. Covenants                                                                          24

13.19. Governing Law                                                                    24

DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS FOR

THE OAKS OF CORNERSTONE TOWNHOMES

(Phase I)

THE STATE OF TEXAS

COUNTY OF HARRIS

THIS DECLARATION, made on the date hereinafter set forth by Cornerstone Venture Townhomes, Ltd., a Texas Limited Partnership, dIbIa The Oaks of Cornerstone,hereinafter referred to as "Declarant".

WHEREAS, Declarant is or was the owner of that certain real property in Harris County, Texas described as follows:

A 4.9905 acre (217,386 square feet) tract of land situated in the John SchnellSurvey, Abstract No. 742, Harris County, Texas being a portion of UnrestrictedReserve "A" of Cornerstone Village North Section 2, plat of which is recorded involume 3410, Page 64 of the Harris county Map Records; said 4.9905 Acre tractbeing more particularly described by metes and bounds as follows:

BEGINNING at a 1-inch iron pipe (with cap stamped "Cotton Surveying) foundmarking the most southerly corner of said Cornerstone Village North Section 2 and being situated in the Northeast right-of-way line of Walters Road (80-foot R.O.W.);

THENCE North 310 55' 53" West, 520.33 feet along said Northeast right-of-way line to a 6/8" iron rod set for corner;

THENCE North 58° 00' 45" East, 415.87 feet to a 6/a" iron rod set for corner;

THENCE South 31° 55' 53" East, 525.13 feet to a 1-inch iron pipe (with capstamped "Cotton Surveying) found for corner in the southeast line of aforesaidReserve "A";

THENCE South 58° 40' 26" West, 415.89 feet along said Southeast line to the POINT OF BEGINNING, containing 4.9905 acres of land;

and

A 0.3378 acre (14,715 square feet) tract of land situated in the John Schnell Survey, Abstract No. 742, Harris County, Texas being a portion of Unrestricted Reserve "A" of Cornerstone Village North Section 2, plat of which is recorded in volume 3410, Page 64 of the Harris county Map Records; said 0.3378 acre tract being more particularly described by metes and bounds as follows:

COMMENCING at a I.-inch iron pipe (with cap stamped "Cotton Surveying) found marking the most southerly corner of said Cornerstone Village North Section 2 and being situated in the Northeast right-of-way line of Walters Road (80-foot R.O.W.);

THENCE South 58° 40' 26" West, a distance of 415.89 feet to a found one inch
iron pipe marking the POINT OF BEGINNING of the hereinafter described tract;

THENCE North 31° 55' 53" West, a distance of 735.71 feet to a found one inch pipe along a curve located the Northerly right-of-way line of Bammel-North Houston Road (100 foot R.O.W.);

THENCE along a curve to the right having a central angle of Or 36' 52", radius of 710 feet and a distance of 21.01 feet to a %" iron rod;

THENCE South 31° 55' 53" East, 735.50 feet to a Ws" iron rod marking the Southeast corner of the herein described tract;

THENCE South 58° 40' 26" West, a distance of 20.00 feet to the POINT OF BEGINNING and containing 0.3378 acres of land; and

WHEREAS, it is the desire of Declarant to place certain restrictions, covenants,conditions, easements, stipulations, reservations, liens and charges upon and against such property in order to establish a uniform plan for the development, improvement and sale of such property, and insure the preservation of such uniform plan for the benefit of both the present and future owners of such property;

NOW, THEREFORE, Declarant hereby declares that all of the properties described above and any property annexed thereto pursuant to the terms hereof, shall be held, sold and conveyed subject to the following restrictions, covenants, conditions, easements, stipulations, reservations, liens and charges, all of which are for the purpose of enhancing and protecting the value, desirability, and attractiveness of the real property. These restrictions, covenants, conditions, easements, stipulations, reservations, liens and charges shall run with the real property and shall be binding on all parties having or acquiring any right, title or interest in the above described property, or any part thereof, and shall inure to the benefit of each owner thereof.


ARTICLE I
DEFINITIONS

SECTION 1.1. ARTICLES OF INCORPORATION or ARTICLES - The Articles of Incorporation of The Oaks of Cornerstone Townhome Association, Inc., as filed with the Secretary of State of the State of Texas.

SECTION 1.2. ASSOCIATION - The Oaks of Cornerstone Townhome Association, Inc., a Texas non-profit corporation, its successors and assigns. The "BOARD OF DIRECTORS" or "BOARD" shall be the elected body having its normal meaning under Texas-corporate law.

SECTION 1.3. BY-LAWS - The Bylaws of The Oaks of Cornerstone Townhome Association, Inc., incorporated herein by reference, as they may be amended from time to time.

SECTION 1.4. COMMON AREA - That portion of the Property owned by the Association for the common use and enjoyment of the members of the Association and shall include, but is not limited to, all recreational facilities, community facilities, swimming pool, trees, landscaping, sprinkler systems, pavements, streets, pipes, wires, conduits, and other public utility lines situated thereon, but shall not include any portion of the Property described as "Lots".

SECTION 1.5. COMMON EXPENSES - The actual and estimated expenses incurred by the Association for the general benefit of all Owners, including any reasonable reserve, all as may be found to be necessary and appropriate by the Board pursuant to this Declaration, the Bylaws, and the Articles of Incorporation of the Association.

SECTION 1.6. DECLARANT - Cornerstone Venture Townhomes, Ltd., its successors and assigns if such successors and assigns should acquire more than one undeveloped Lot from the Declarant for the purpose of development.

SECTION 1.7. LOT - That portion of the Property on which there is or will be constructed a single family townhome which is to be individually and separately owned. It is understood there will be a total of 49 lots upon which single family townhomes are to be erected. Should additional land be annexed pursuant to Article II hereof, the number of Lots shall be increased by the number of single family townhomes erected or to be erected on such property when annexed. Declarant shall be the owner of all of the said 49 lots, SAVE AND EXCEPT those particular lots which Declarant conveys in fee simple title by recordable deed from, and after the date hereon. "TOWNHOME" shall mean a single family residence with a common wall, or walls, roof and foundation.

SECTION 1.8. MEMBER - Any Person entitled to membership in the Association, as provided herein.

SECTION 1.9. MORTGAGE - A mortgage, a deed of trust, a deed of secure debt, or any other form of security deed.

SECTION 1.10. MORTGAGEE - A beneficiary or holder of a Mortgage.

SECTION 1.11. OWNER - Any Person, firm, corporation or other entity, or any combination thereof that is the record owner of fee simple title to any Lot, including contract sellers, but excluding in all cases any party holding an interest merely as security for the performance of an obligation.

SECTION 1.12. PERSON - A natural person, a corporation, a partnership, a trustee, or any other legal entity.

SECTION 1.13. PROPERTY - That certain real property here in above described, and such additions thereto as may hereafter be brought within the jurisdiction of the Association.

         

SECTION 1.14. RULES AND REGULATIONS - Such Rules and Regulations as the Association may promulgate from time to time with respect to the Subdivision, which may include reasonable provisions for fines for violation of such Rules and Regulations.

SECTION 1.15. SINGLE FAMILY - The term "single family" shall be defined as (a) one or more persons related by blood, marriage, or adoption, their children, only one (1) other person who is not so related, and domestic servants; or (b) no more than two (2) unrelated persons living together as a single housekeeping unit and their children, and domestic servants.

SECTION 1.16. SUBDIVISION - Shall mean The Oaks of Cornerstone Townhomes(Phase I) development.

SECTION 1.17. CORNERSTONE VILLAGE NORTH SECTION 2 COVENANTS -Those certain restrictive covenants filed of record in volume 310, Page 64 of the Map records of Harris County, Texas and filed of record under County Clerk's File No. H629263 and refiled under County Clerk's File No. H661543 of the Official Public Records of Real Property of Harris County, Texas, covering, among other lands, the Property here in above described as The Oaks of Cornerstone Townhomes (Phase I).

ARTICLE II
ESTABLISHMENT OF GENERAL PLAN

SECTION 2,1. GENERAL PLAN AND DECLARATION - This Declaration is here by established pursuant to and in furtherance of a common and general plan for the improvement and sale. of Lots within the Subdivision and for the purpose of enhancing and protecting the value, desirability, and attractiveness of the Subdivision. The Subdivision and each part thereof shall be owned, held, transferred, conveyed, sold, leased, rented, hypothecated, encumbered, used, occupied, maintained, altered, and improved subject to the covenants, conditions, restrictions, limitations, reservations, easements, exceptions, equitable servitudes, and other provisions set forth in this Declaration, for the duration thereof. The Lots and Common Area in the Subdivision shall be subject to the jurisdiction of the Association.

SECTION 2.2. EQUITABLE SERVITUDES - The covenants, conditions, restrictions,limitations, reservations, easements, and exceptions of this Declaration hereby are imposed as equitable servitudes upon each Lot, and the Common Areas within the Subdivision as a servient estate, for the benefit of each and every other Lot and parcel of Common Area within the Subdivision, as the dominant estate.

SECTION 2.3. COVENANTS APPURTENANT - The covenants, conditions, restrictions, limitations, reservations, easements, exceptions, equitable servitudes, and other provisions set forth in this Declaration shall run with, and shall inure to the benefit of and shall be binding upon, all of the Subdivision, and each Lot and the Common Area therein, if any, and shall be binding upon and inure to the benefit of: (a) the Subdivision; (b) Declarant and its successors and assigns; (c) the Association and its successors and assigns; and (d) all Persons having, or hereafter acquiring, any right, title, or interest in all or any portion of the Subdivision and their heirs, executors, successors, and assigns.

SECTION 2.4. ANNEXATION OF ADDITIONAL PROPERTIES - Declarant anticipates the development of additional land within the area contiguous to the Property and described as follows:

A 2.0095 acre (87,934 square feet) tract of land situated in the John Schnell
Survey, Abstract No. 742, Harris County, Texas being a portion of Unrestricted
Reserve "A" of Cornerstone Village North Section 2, plat of which is recorded in Volume 3410, Page 64 of the Harris county Map Records; said 2.0095 Acre tract being more particularly described by metes and bounds as follows:

COMMENCING at a 1-inch iron pipe (with cap stamped "Cotton Surveying) found marking the most southerly corner of said Cornerstone Village North Section 2 and being situated in the Northeast right-of-way line of Walters Road (80-foot R.O.W.);

THENCE North 31° 55' 53" West, 520.33 feet along said Northeast right-of-way line to a 5/8" iron rod set for corner marking the POINT OF BEGINNING of tract herein described;

THENCE North 31° 55' 53" West, 200.61 feet to a Ws" iron rod set for corner;

THENCE North 13° 02' 27" East, 14.15 feet to a 1-inch iron pipe found for corner in the Southeast right-of-way line of Bammel-North Houston Road (100 foot R.O.W.);

THENCE North 58' 00' 48" East, 400.15 feet along said Southeast Line to a point of tangency;

THENCE along a curve to the right having a central angle of 00° 27' 41", radius of 710 feet and a curve length of 5.72 feet to a 5/a" iron rod set for corner;

THENCE South 31° 55' 53" East, 210.58 feet to an iron rod set for corner;

THENCE South 58° 00' 45" West, 415.87 feet to the POINT OF BEGINNING,containing 2.0095 acres of land.

If Declarant should develop the above additional land within three (3) years of the incorporation of the Association, such additional lands may be annexed to the Property without the consent of the Class A members by Declarant by instrument executed by Declarant and filed in the deed records of Harris County, Texas, describing the land to be annexed and adopting the terms and provisions hereof as being applicable to such additional land to the full extent as though the additional land had been included in the property to which these covenants, conditions and restrictions apply.

Section 2.5 - Subject to the provisions of Section 2.4 above, annexation of other property which are located outside the lands above described, shall require the assent of two-thirds (2/3) of the members at a meeting duly called for this purpose, written notice of which shall be sent to all members not less than 30 days nor more than 50 days in advance of the meeting setting forth the purpose of the meeting, The presence of members or of proxies entitled to cast sixty percent (60%) of the votes of membership shall constitute a quorum. If the required quorum if not forthcoming at any meeting, another meeting may be called, subject to the notice requirements set forth above and the required quorum of such subsequent meeting shall be one-half (1/2) of the required quorum of the preceding meeting. No subsequent meeting shall be held more than 50 days following the preceding meeting. In the event that two-thirds (2/3) of the membership are not present in person or by proxy, members not present may give their written assent to the action taken thereat.

ARTICLE III
MANAGEMENT AND OPERATION OF SUBDIVISION

SECTION 3.1. MANAGEMENT BY ASSOCIATION - The affairs of the Subdivision shall be administered by the Association. The Association shall have the right, power and obligation to provide for the management, acquisition, construction, maintenance, repair, replacement, administration, and operation of the Subdivision as herein provided for and as provided for in the Articles of Incorporation, Bylaws, and the Rules and Regulations. In the event of any conflict between the Articles of Incorporation and the Bylaws, the Articles of Incorporation shall control; and in the event of a conflict between the Articles of Incorporation or the Bylaws and the provisions of the Declaration, the provisions of the Declaration shall control. The business and affairs of the association shall be managed by its Board Directions, unless otherwise reserved to the Members of the Association by law, the Declaration, Articles of Incorporation, or the Bylaws. It shall be the responsibility of each Owner or occupant of a townhome to obtain copies of and become familiar with the terms of the Declaration, Articles of Incorporation, Bylaws, Rules and Regulations.

The Association, acting through the Board, shall be entitled to enter into such contracts and agreements concerning the Subdivision as the Board deems reasonably necessary or appropriate to maintain and operate the Subdivision in accordance with the Declaration, including without limitation, the right to grant utility and other easements for uses the Board shall deem appropriate and the right to enter into agreements with adjoining or nearby land owners or governmental entities on matters of maintenance, trash pick-up, repair, administration, security, traffic, operation of recreational facilities, or other matters of mutual interest. In addition to other powers granted the Board of Directors herein or in the Articles of Incorporation, the Board of Directors of the Association shall also have the power to create procedures for resolving disputes between Owners or occupants of townhomes, including appointment of committees to consider or reconsider resolutions of any disputes.

SECTION 3.2. BOARD OF DIRECTORS - The number, term, and qualifications of the members of the Board of Directors shall be governed by the Articles of Incorporation and the Bylaws.

SECTION 3.3. MEMBERSHIP - Every Owner, as defined in Section 1.11 above, shall be deemed to have a membership in the Association. No Owner, whether one (1) or more Persons, shall have more than one (1) membership per Lot owned. In the event the Owner of a Lot is more than one (1) Person, votes and rights of use and enjoyment shall be as provided herein. The rights and privileges of membership may be exercised by a Member subject to the provisions of this Declaration and the Bylaws. The membership rights of a Lot owned by a corporation or partnership shall be exercised by the individual designated from time to time by the Owner in a written instrument provided to the Secretary, subject to the provisions of this Declaration and the Bylaws.

SECTION 3.4. POWER TO ADOPT RULES AND REGULATIONS - The Association, through its Board of Directors, may adopt, amend, repeal, and enforce Rules and Regulations, fines, levies, and enforcement provisions as it deems necessary or desirable with respect to the interpretation and implementation of the Declaration, the operation of the Association, the use and enjoyment of the Common Areas, and the use of any other property within the Subdivision, including Lots. Any such Rules and Regulations shall be reasonable and uniformly applied to all Members and their family, tenants, and guests. Such Rules and Regulations shall be effective only upon adoption by resolution of the Board of Directors. Notice of the adoption, amendment, or repeal of any Rule and Regulation shall be given by depositing in the mail to each Member a copy of such Rule or Regulation, and copies of the currently effective Rules and Regulations shall be made available to each Member upon request and payment of the reasonable expense of supplying the same. Each Member shall comply with such Rules and Regulations and shall see that Persons claiming through such Member comply with such Rules and Regulations. Such Rules and Regulations shall have the same force and effect as if they were set forth in, and were part of, this Declaration. In the event of conflict between the Rules and Regulations and the provisions of this Declaration, the provisions of this Declaration shall prevail.

SECTION 3.5. IMPLIED POWERS - The Association may exercise any right, power or privilege given to it expressly by this Declaration or the Bylaws, and every other right, power or privilege reasonably to be implied from the existence of any right or privilege given to it herein or reasonably necessary to effectuate any such right, power or privilege.

ARTICLE IV
VOTING RIGHTS

The Association shall have two classes of voting memberships.

SECTION 4.1. CLASS "A" MEMBERS - Shall be all Owners with the exception of the Declarant and shall be entitled to one vote for each Lot in which they hold the interest required for Membership by Section 3.3 above. When more than one person holds such interest in any Lot, all such persons shall be members. The vote for such Lot shall be exercised as they, among themselves determine, but in no event shall more than one vote be cast with respect to any Lot.

SECTION 42. CLASS "B" MEMBER - Shall be Declarant and shall be entitled to three (3) votes for each Lot in which they hold the interest required for Membership by Section 3.3. Class B membership shall cease and be converted to Class A membership on the happening of either of the following events: i) when the total votes outstanding in the Class A membership equals the total votes outstanding in the class B membership; or ii) three (3)years from the date hereof.

ARTICLE V
PROPERTY RIGHTS

ELECTIONS 5.1. MEMBERS EASEMENTS OF ENJOYMENT. Every member shall have a right and easement of enjoyment in and for the Common Area and such easement shall be appurtenant to and shall pass with the title to every assessed Lot, subject to the following provisions:

(a) The right of the Association to limit the number of guests of members. 

(b) The right of the Association to charge reasonable admission and other fees for use of any recreational facility situated upon the Common Area. 

(c) The right of the Association, in accordance with its Articles and By-Laws, to borrow money for the purpose of improving the Common Area and facilities and in aid thereof to mortgage said property, and the rights of such mortgage in said properties shall be subordinated to the rights of the homeowners hereunder.

(d) The right of the Association to suspend the voting rights and right to use of the recreational facility by a member for any period during which any assessment against his Lot remains unpaid; and for a period not to exceed thirty (30) days for any violation of its published rules and regulations. 

(e) The right of the Association to dedicate or transfer all or any part of the Common Area to any public agency, authority, or utility for such purposes and subject to such conditions as may be agreed to by members. No such dedication or transfer shall be effective unless an instrument signed by members entitled to cast two-thirds (2/3) of the votes of the membership has been recorded, agreeing to such dedication or transfer; and unless written notice of the proposed action is sent to every member not less than thirty (30) days nor more than fifty (50) days in advance.

SECTION 5.2. DELEGATION OF USE. Any member may delegate, in accordance with the By-Laws, his right of enjoyment to the Common Area and facilities to the members of his family, his tenants or contract purchasers who reside on the property.

SECTION 5.3. TITLE TO THE COMMON AREA. The Declarant hereby covenants for itself, its successors and assigns that it will convey fee simple title to the Common Area to the Association free and clear of all encumbrances and liens. Furthermore, as additional properties are developed (in sections or phases) the Declarant hereby covenants for itself, its successors or assigns that it will convey fee simple title to that portion of the Common Area pertaining to that section or phase to the Association. As a right running with the real property, ownership of each Lot shall entail the use and enjoyment of all walks, stairs, pavements, driveways, parking areas, entrances and exits owned by the Association and there shall always be access by both pedestrians and vehicles to and from each townhome to a street dedicated to public use without hindrance of such communication ways by the Association and/or Owners of any townhome. Title to the Common Area shall remain undivided in the Association so as to preserve the rights of the Owners with respect to their use and enjoyment of the Common Area.

ARTICLE VI

ASSESSMENTS

SECTION 6.1. CREATION OF ASSESSMENTS - There are hereby created assessments for Association expenses as may from time to time specifically be authorized by the Board of Directors, to be commenced at the time and in the manner set forth herein. There shall be two (2) types of assessments: (a) Annual Assessments and (b) Special Assessments.  Each Owner, by acceptance of a deed or recorded contract of sale for any portion of the Properties is deemed to covenant and agree to pay these assessments. All assessments, together with interest (at a rate not to exceed the highest rate allowed by Texas law) as computed from the date the delinquency first occurs, late charges, costs, and reasonable attorney's fees, shall be a charge on the land and shall be a continuing lien upon the Lot against which each assessment is made until paid. Each such assessment, together with interest, tate charges, costs, and reasonable attorney's fees, shall also be the personal obligation of the Person who was the Owner of such Lot at the time the assessment arose, and, in the event of a transfer of title, his or her grantee shall be jointly and severally liable for such portion thereof as may be due and payable at the time of conveyance, except no first Mortgagee who obtains title to a Lot pursuant to the remedies provided in the Mortgage shall be liable for unpaid assessments which accrued prior to such acquisition of title. The Association shall, upon demand at any time, furnish to any Owner liable for any type of assessment a statement in writing signed by an officer of the Association setting forth whether such assessment has been paid as to any particular Lot. Such statement shall be conclusive evidence of payment to the Association of any assessments therein stated to have been paid. The Association may require the advance payment of a reasonable processing fee for the issuance of such statement.

Assessments shall be paid in such manner and on such dates as may be fixed by the Board of Directors. Unless the Board otherwise provides, the annual assessment shall be due and payable in twelve (12) equal monthly installments on the first day of month. If any Owner is delinquent in paying any assessments or other charges levied on his Lot, the Board may require any unpaid installments of the annual assessment and/or any other assessments to be paid in full immediately.

No Owner may waive or otherwise exempt himself from liability for the assessments provided for herein, including, by way of illustration and not limitation, by non-use of Common Areas or abandonment of the Lot, The obligation to pay assessments is a separate and independent covenant on the part of each Owner. No diminution or abatement of assessment or set-off shall be claimed or allowed by reason of any alleged failure of the Association or Board to take some action or perform some function required to be taken or performed by the Association or Board under this Declaration or the Bylaws, or for inconvenience or discomfort arising from the making of repairs or improvements which are the responsibility of the Association, or from any action taken to comply with any law, ordinance, or with any other or directive of any municipal or other governmental authority.

Both Annual and Special Assessments must be fixed at a uniform rate; provided, however, any assessments on Lots that do not have a dwelling thereon shall be fifty percent (50%) of the then assessment charge for Lots which have dwellings thereon.

SECTION 6.2. PURPOSE OF THE ANNUAL ASSESSMENT - The assessments levied by the Association shall be used exclusively for the purpose of promoting the recreation, health, safety and welfare of the residents in the properties and up particular for the improvement and maintenance of the Propertiesservices and facilities devoted to this purpose and related to the use and enjoyment of the Common Area, and of the townhouse situated upon Properties. Such uses shall include, but are not limited to, the cost to the Association of all taxes, repairs, replacement, and maintenance of the Common Area and of the maintenance of the exteriors of the Lots or townhomes as may from time to time be authorized by the Board of Directors, and other facilities and activities including, but not limited to, mowing grass, caring for grounds, landscaping, swimming pool, any recreational buildings and equipment, roofs and exterior walls of townhomes, carports, if any including their roofs, garbage pick-up service furnished to the townhomes by the Association and other charges required by this Declaration of Covenants, Conditions and Restrictions or that the Board of Directors of the Association shall determine to be necessary or desirable to meet the primary purpose of the Association, including the establishment and maintenance of a reserve for repair, maintenance, taxes, and other charges as specified herein. It is understood that the judgment of the Association in the expenditure of said funds shall be final and conclusive so long as said judgment is exercised in good faith. Nothing herein shall constitute a representation that any of the above will, in fact, be provided by the Association.

SECTION 6.3. ANNUAL ASSESSMENT - It shall be the duty of the Board, at least sixty (60) days before the beginning of each calendar year, to prepare a budget covering the estimated Common Expenses of the Association during the coming year. The budget shall include a capital contribution establishing a reserve fund in accordance with a budget separately prepared, as provided in Section 6.6. However, in the event the proposed budget is disapproved or the Board fails for any reason to determine the budget for any year, then and until such time as a budget shall have been determined as provided herein, the budget in effect for the immediately preceding year shall continue for the current year.

(a) The maximum annual assessment on each Lot shall be One Thousand Three Hundred Twenty and 00/100 Dollars ($1,320.00).

(b) From and after January 1 of the year immediately following the recordation of this Declaration, the maximum annual assessment may be increased each year not more than ten percent (10%) above the annual assessment for the previous year without a vote of the membership.

(c) From and after January 1 of the year immediately following the recordation of this Declaration, the maximum annual assessment may be increased above ten percent (10%) by a vote of two-thirds (213) of the Members who are voting in person, at a meeting duly called for this purpose.

(d)  The Board of Directors may fix the annual assessment at an amount not to exceed the maximum permitted herein. The Board shall cause notice of the amount of the annual assessment to be levied against each Lot for the following year to be delivered to each Owner at least thirty (30) days prior to the beginning of the calendar year.

SECTION 6.4. SPECIAL ASSESSMENTS -

(a) Entire Membership. The Association may levy special assessments from time to time provided such assessment receives the affirmative vote of two thirds (2/3) of the Members who are voting in person, at a meeting duly called for this purpose. Special assessments levied against the entire membership shall be allocated to the Lots in the same manner as annual assessments. Special assessments pursuant to this paragraph shall be payable in such manner and at such times as determined by the Board, and may be payable in installments extending beyond the fiscal year in which the special assessment is approved, if the Board so determines.

(b) Less Than All Members. The Association may levy a Special Assessment against any Member individually and against such Member's Lot to reimburse the Association for costs incurred in bringing a Member and his Lot into compliance with the provisions of the Declaration, any amendments thereto, the Articles, the By-Laws, or the Association Rules and Regulations, which Special Assessment may be levied upon the vote of the Board after reasonable notice to the Member and an opportunity for a hearing in front of the Board.

SECTION 6.5. LIEN FOR ASSESSMENTS - Upon recording of a notice of lien on any Lot, there shall exist a perfected lien for unpaid assessments prior and superior to all other liens, except, (1) all taxes, bonds, assessments, and other levies which by law would be superior thereto, and (2) the lien or charge of any first Mortgage of record (meaning any recorded Mortgage with first priority over other Mortgages) made in good faith and for value. Such lien, when delinquent, may be enforced by suit, judgment, and judicial or non-judicial foreclosure in accordance with Tex. Prop. Code Ann. Section 51.002 (Vernon 1983), as it may be amended. The Association, acting on behalf of the Owners, shall have the power to bid for the Lot at foreclosure sale and to acquire and hold, lease, mortgage, and convey the same. During the period in which a Lot is Owned by the Association following foreclosure: (a) no right to vote shall be exercised on its behalf; (b) no assessment shall be levied on it; and (c) each other Lot shall be charged, in addition to its usual assessment, its equal pro rata share of the assessment that would have been charged such Lot had it not been acquired by the Association as a result of foreclosure. Suit to recover a money judgment for unpaid Common Expenses and attorney's fees shall be maintainable without foreclosing or waiving the lien securing the same.

SECTION 6.6. RESERVE BUDGET AND CAPITAL CONTRIBUTION - The Board of Directors shall make a reasonable effort to annually prepare a reserve budget to take. into account the number and nature of replaceable assets, the expected life of each asset, and the expected repair or replacement cost. The Board shall set the required capital contribution in an amount sufficient to permit meeting the projected needs of the Association, as shown on the budget, with respect to both amount and timing by annual assessments over the period of the budget to the extent achievable under current funding. The capital contribution required, if any, shall be fixed by the Board and included within and distributed with the applicable budget and notice of assessments, as provided in Section 6.2 of this Article.

SECTION 6.7. SUBORDINATION OF THE LIEN TO FIRST MORTGAGES - The lien of assessments, including interest, late charges (subject to the limitations of Texas law), and costs (including attorney's fees) provided for herein, shall be subordinate to the lien of any first Mortgage upon any Lot. The sale or transfer of any Lot shall not affect the assessment lien. However, the sale or transfer of any Lot pursuant to judicial or non-judicial foreclosure of a first Mortgage shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer. No sale or transfer shall relieve such Lot from lien rights for any assessments thereafter becoming due. Where the Mortgagee holding a first Mortgage of record or other purchaser of a lot obtains title pursuant to judicial or non-judicial foreclosure of the Mortgage, it shall not be liable for the share of the Common Expenses or assessments by the Association chargeable to such Lot which became due prior to such acquisition of title. Such unpaid share of Common Expenses or assessments shall be deemed to be Common Expenses collectible from Owners of all the Lots, including such acquirer, its successors and assigns.

SECTION 6.8. EXEMPT PROPERTY - Notwithstanding anything to the contrary herein, the following property shall be exempt from payment of annual and special assessments: (a) all Common Area; and (b) all property dedicated to and accepted by any governmental authority or public utility, including, without limitation, public schools, public streets, and public parks, if any.

ARTICLE VII
INSURANCE

The Board of Directors, or its duly authorized agent, shall have the authority to and shall obtain insurance for all the buildings, including all townhomes, against loss or damage by fire or other hazards in an amount sufficient to cover the full replacement cost of any repair or reconstruction work in the event of damage or destruction from any hazard; and shall also obtain a form public liability policy covering the Property, and all damage or injury caused by the negligent acts of the Association or any of its agents. Said insurance may include coverage against vandalism. Premiums for all such insurance shall be a Common Expenses. All such insurance coverage obtained by the Board of Directors shall be written in the name of the Association, which policy or policies shall indemnify the interest of each Owner and which shall provide for a standard, non-contributory mortgage clause in favor of each first mortgagee of a Townhome. In addition to the aforesaid insurance required to be carried by the Association, any Owner may, if he wishes and at his own expense, insure his own townhome for his own benefit and carry any and all other insurance he deems advisable. It shall be the individual responsibility of each Owner at his own expense to provide, as he sees fit, homeowner's liability insurance, theft and other insurance covering personal property damage and loss. All policies of casualty insurance carried by each Owner shall be without contribution with respect to the policies of casualty insurance obtained by the Association for the benefit of all Owners as provided above. In the event of damage or destruction by fire or other casualty to any property covered by insurance written in the name of the Association, the Board of Directors shall, with concurrence of the mortgagee, if any, upon receipt of the insurance proceeds, contract to rebuild or repair such damaged or destroyed portions of the property as to as good condition as formerly. All such insurance proceeds shall be deposited in a bank or other financial institution insured by the federal government with the provision that such funds may be withdrawn only by instruments signed by at least two (2) members of the Board of Directors. The Board of Directors shall advertise for sealed bids with any licensed contractors, and then may negotiate with any contractor, who shall be required to provide a full performance and payment bond for the repair, reconstruction or rebuilding of such destroyed or damaged townhome. In the event the insurance proceeds are insufficient to pay all the cost or repairing and/or rebuilding to the same condition as formerly, the Board of Directors shall levy a special assessment against those Owners of the damaged townhomes in such proportions as the Board of directors deem fair and equitable in light of the damage sustained by such townhomes to make up for the deficiency, except that the special assessment shall be levied against all townhome Owners, as established by Section 6.4 above to make up for any deficiency for repair or rebuilding of the Common Areas not a physical part of a townhome unit. In the event such insurance proceeds exceed the cost of repair or reconstruction, such excess shall be paid over to the respective mortgagees and Owners of the damaged townhomes as their interest may appear.  Notwithstanding anything above, any insurance deductible attributed to an individual unit or lot shall be the responsibility of the owner of the lot.

ARTICLE VIII

PARTY WALLS

SECTION 8.1. GENERAL RULES OF LAW TO APPLY. Each wall which is built as a part of the original construction of the homes upon the Properties 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 omission shall apply thereto. The Owner of a townhome shall not cut through or make any penetration through a party wall for any purpose whatsoever.

SECTION 8.2. SHARING OF REPAIR AND MAINTENANCE. The cost of reasonable repair and maintenance of a party wall shall be shared by the Owners who make use of the wall in equal properties.

SECTION 8.3. DESTRUCTION BY FIRE OR OTHER CASUALTY. If a party wall is destroyed or damaged by fire or other casualty, then, to the extent that such damage is not covered by insurance and repaired out of the proceeds of same, any Owner who has used the wall may restore it, and if the other Owner thereafter makes use of the wall, they contribute to cost of restoration thereof in equal proportions without prejudice, however, to the right of any such Owner to call for a larger contribution from the others under any rule of law regarding liability for negligence or willful acts or omissions.

SECTION 8.4. WEATHERPROOFING. Notwithstanding any other provisions of this Article, to the extent that such damage is not insured and paid by the insurance provided for herein, an Owner who by his negligent or willful act causes the Party Wall to be exposed to the elements shall bear the whole cost of furnishing the necessary protection against such elements,

SECTION 8.5. RIGHT TO CONTRIBUTION RUNS WITH LAND. The right of any Owner to contribution from any other Owner under this Article shall be appurtenant to and run with land and shall pass to such Owner's successors in title.

SECTION 8.6. ARBITRATION. In the event of any dispute arising concerning a party wall, or under the provisions of this Article, such party shall choose one arbitrator, and such arbitrators shall choose one additional arbitrator, and the decision shall be by a majority of all the arbitrators. Should any party refuse to appoint an arbitrator within ten (10) days after written request therefore, the Board of Directors of the Association shall select an arbitrator for the refusing party.

ARTICLE IX
ARCHITECTURAL CONTROL

No building, structure or improvement shall be placed, erected or installed upon any Lot, no construction (which term shall include within its definition staking, clearing, excavation, grading, and other site work), and no exterior alteration or modification of existing buildings, structures or improvements upon any Lot shall be commenced until the requirements below have been fully met, and until the written approval of the Architectural Control Committee has been obtained pursuant to Section 9.1 below.

All townhomes constructed on any portion of the Properties shall be designed by and built in accordance with the plans and specifications of a licensed architect or licensed building designer. 

The Board of Directors shall have the authority and standing, on behalf of the Association, to enforce in courts of competent jurisdiction decisions of the committee established in Section 9.1.

SECTION 9.1. ARCHITECTURAL CONTROL COMMITTEE ("ACC') - The ACC shall consist of at least two (2), but not more than five (5), persons and shall have exclusive jurisdiction over all original construction and all modifications, additions, or alterations on any portion of the Properties. The Board of Directors shall appoint the members of the ACC, who shall serve and may be removed at the discretion of the Board of Directors. The members of the ACC may include Board members, architects, engineers and other persons who are not members of the Board. Plans and specifications showing the nature, kind, shape, color, size, materials, and location of such new construction, modifications, additions, or alterations, shall be submitted to the ACC for approval as to quality of workmanship and design and as to harmony of external design with existing structures, location in relation to surrounding structures, topography, and finish grade elevation. Nothing contained herein shall be construed to limit the right of an Owner to remodel the interior of his townhome, or to paint the interior of his townhome any color desired; provided modifications or alterations to the interior of screened porches, patios, and similar portions of a townhome visible from outside the townhome shall be subject to approval hereunder. In the event that the ACC fails to approve or to disapprove such plans or to request additional information reasonably required within forty-five (45) days after submission, the plans shall be deemed approved.

SECTION 9.2. MINIMUM CONSTRUCTION STANDARDS - The ACC from time to time may establish, supplement or amend Minimum Construction Standards, providing an outline of minimum acceptable construction standards; provided, however, that such outline will serve as a minimum guideline, only, and the ACC may impose other requirements in connection with its review of any proposed buildings, structures or improvements. If the Minimum Construction Standards impose requirements that are more stringent than the provisions of this Declaration, the provisions of the Minimum Construction Standards shall control.

SECTION 9.3. NO WAIVER OF FUTURE APPROVALS - The approval of the ACC of any proposals or plans and specifications or drawings for any work done or proposed, or in connection with any other matter requiring the approval and consent of such Committee, shall not be deemed to constitute a waiver of any right to withhold approval or consent as to any similar proposals, plans and specifications, drawings, or matters whatever subsequently or additionally submitted for approval or consent.

SECTION 9.4. VARIANCE - The ACC may authorize variances from compliance with any of its guidelines and procedures when circumstances such as topography, natural obstructions, hardship, or environmental considerations require, but only in accordance with herein adopted Rules and Regulations. Such variances may only be granted, however, when unique circumstances dictate and no variance shall (a) be effective unless in writing, or (b) stop the committee from denying a variance in other circumstances. For purposes of this Section, the inability to obtain approval of any governmental agency, the issuance of any permit, or the terms of any financing shall not be considered a hardship warranting a variance.

SECTION 9.5. COMPLIANCE WITH GUIDELINES - Any contractor, subcontractor, agent, employee, or other invitee of an Owner who fails to comply with the terms and provisions of the guidelines and procedures may be excluded by the Board from the Properties without liability to any person.

SECTION 9.6. NO LIABILITY - Review and approval of any application pursuant tothis Article is made on the basis of aesthetic considerations only. The ACC shall not bear any responsibility for ensuring the structural integrity or soundness of approved construction or modifications, nor for ensuring compliance with building codes and other governmental requirements. Neither the Association, the Board of Directors, any committee, or member of any of the foregoing shall be held liable for any injury, damages or loss arising out of the manner or quality of approved construction on or modifications to any Lot.

ARTICLE X
EXTERIOR MAINTENANCE

In addition to maintenance upon the Common Area, the Association shall provide exterior maintenance upon each Lot which is subject to assessment hereunder, as follows: paint, repair, replace, and care for roofs, gutters, downspouts, exterior building surfaces, trees, shrubs, grass, walks, driveways, parking areas, and other exterior improvements. Such exterior maintenance shall not include glass surfaces, patios, patio fences, window and door fixtures and hardware; maintenance and repair of these areas and items shall be the sole responsibility of the individual Lot owner.

In the event that the need for maintenance or repair is caused through the willful or negligent act of the Owner, his family, or guests, or invitees, and not covered or paid for by insurance on such Lot, the cost of such maintenance or repairs shall be added to and become a part of the assessment to which such Lot is subject.

ARTICLE XI
USE RESTRICTIONS

SECTION 11.1. GENERAL - No Owner shall use the Common Area, if any, or use or  permit such Owner's Lot or townhome to be used for any purpose that would (a) void any insurance in force with respect to the Subdivision; (b) make it impossible to obtain any insurance required by this Declaration; (c) constitute a public or private nuisance, which determination may be made by the Board in its sole discretion; (d) constitute a violation of the Declaration or any applicable law or (e) unreasonably interfere the use, occupancy and enjoyment of the Subdivision by other Owners.

SECTION 11.2. SINGLE FAMILY RESIDENTIAL USE - Each Lot conveyed shall be designated by a separate legal description and shall constitute a freehold estate subject to the terms, conditions, and provisions hereof. No buildings other than townhomes, being single family residences joined together by a common wall or walls, roof and foundation, shall be constructed on the Lots. Each Owner shall use his Lot for single family residential purposes only. As used herein, the term "single family residential purposes" shall be deemed to specifically prohibit, by way of illustration but without limitation, the use of any Lot for a duplex apartment, or any other apartment for any multi-family use or for any business, educational, church, professional or other commercial activity of any type, except that an Owner may use his residence as a personal office for a profession or occupation, provided: (a) the public is not invited, permitted, or allowed to enter the townhome or any structure or improvement upon such Lot and conduct business therein; (b) no signs advertising such profession or business are permitted; (c) no on-site employees are permitted; (d) no offensive activity or condition, noise and/or odor are permitted; and (e) such use in all respects complies with the laws of the State of Texas, ordinances, laws, rules, and regulations of any regulatory body or governmental agency having authority and jurisdiction over such matters.  The term "single family residential purposes" shall also be defined as: (a) one or more persons related by blood, marriage, or adoption not to exceed four (4) persons per residence including the owner; (b) no more than two unrelated persons living together as a single housekeeping unit and their children not to exceed four (4) persons per residence including the owner. All exceptions must be approved by the Board."

SECTION 11.3. VEHICLES - No motor vehicle or non-motorized vehicle, boat, trailer, marine craft, recreational vehicle, camper, tractor-truck., trailer, hovercraft, aircraft, machinery or equipment of any kind may be parked or stored on any part of any Lot, easement, right-of-way, Common Area or parking spaces along the private streets, unless such vehicle or object is completely concealed from public view inside a garage or enclosure approved by the Architectural Control Committee, except, passenger automobiles, passenger vans, motorcycles, or pick-up trucks that: (a) are in operating condition; (b) have current license plates and inspection stickers; (c) are in daily use as motor vehicles on the streets and highways of the State of Texas; (d) which do not exceed six feet six inches (6'6") in height, or eight feet (8') in width, or eighteen feet (18') in length, may be parked in the driveway accessing a Lot or parking spaces along the private streets. No vehicle may be repaired within the Subdivision unless the vehicle being repaired is concealed from view inside a garage or other approved enclosure. Notwithstanding the above, the disassembly and assembly of motor vehicles to perform repair work shall be permitted provided such activities are not conducted on a regular or frequent basis, and are either conducted entirely within an enclosed garage or, if conducted outside, are begun and completed within twenty-four (24) hours. This restriction shall not apply to any vehicle,machinery, or equipment temporarily parked and in use for the construction, repair or maintenance of a townhome.  Residents are not allowed to park in any areas designated for visitor parking and no parking is allowed on the streets. Residents must use the four (4) spaces provided for each unit, i.e., two vehicles in their garage and two vehicles on their driveway. Visitors are allowed 24 hour parking per unit and are subject to towing or fines after 24 hours. Exceptions need Board approval. All garage doors must stay closed at all times except when servicing your property. No garage can be used for living quarters of any kind."

SECTION 11.4. SIGNS - A single "for sale" or "for lease" sign shall be permitted on any Lot being offered for sale or for lease, provided it does not exceed two and one-half (21/2) feet by three and one-half (31/2) feet in size and does not stand higher than five (5) feet from the ground. The Board reserves the right to restrict the size, color, lettering and placement of signs. The Board of Directors shall have the right to erect signs as they, in their discretion, deem appropriate. Notwithstanding the above, no signs, banners, or similar items advertising or providing directional information with respect to activities being conducted inside or outside the Properties shall be permitted displayed or posted within the Properties. The Association, acting through the Board, shall be authorized to enter upon any Lot and remove any sign, advertisement, billboard or other structure displayed in violation hereof, and in doing so shall not be subject to any liability for trespass or other tort in connection with or arising from such entry and/or removal.

SECTION 11.5. ANIMALS AND PETS - No animals, livestock, or poultry of any kind shall be raised, bred, or kept on any portion of the Properties, except that dogs, cats, or other usual and common household pets may be permitted on a Lot. No limitation on the number of pets shall apply to hamsters, small birds, fish or other constantly caged animals. Pets which are permitted to roam free, or, at the sole discretion of the Association, endanger the health, make objectionable noise, or constitute a nuisance to the Owners of other Lots are not permitted. No pets shall be kept, bred, or maintained for any commercial purpose on a scale that creates a local or public nuisance. Dogs shall at all times, whenever they are outside a Lot, be confined on a leash held by a responsible person. Pet owners must comply with all county and state laws pertaining to ownership of such pets, and promptly and properly dispose of all pet excrement.

SECI1ON 11.6. QUIET ENJOYMENT - No portion of the Properties shall be used, in whole or in part, for the storage of any property or thing that will cause it to appear to be in an unclean or untidy condition or that will be obnoxious to the eye; nor shall any substance, thing, Or material be kept upon any portion of the Properties that will emit foul or obnoxious odors or that will cause any noise or other condition that will or might disturb the peace, quiet, safety, comfort, or serenity of the occupants of surrounding property.

No noxious, illegal, or offensive activity shall be carried on upon any portion of the Properties, nor shall anything be done thereon tending to cause embarrassment, discomfort, annoyance, or nuisance to any person using any portion of the Properties. There shall not be maintained any plants or animals or device or thing of any sort whose activities or existence in any way is noxious, dangerous, unsightly, unpleasant, or of a nature as may diminish or destroy the enjoyment of the Properties. No outside burning of trash, garbage or household refuse shall be permitted within the Properties. No speaker, horn, whistle, bell or other sound device, except alarm devices used exclusively for security purposes, shall be installed or operated on any Lot.

SECTION 11.7. ANTENNAS - No antennas, aerials, satellite dishes, or other apparatus for the transmission or reception of television, radio, satellite or other signals of any kind shall be placed, allowed, or maintained upon any portion of the Properties, including any Lot., without the prior written consent of the Board or its designee, unless completely contained within the Lot so as not to be visible from the streets adjacent to the Subdivision, or private drives therein. The Association shall have the right, without obligation, to erect or install an aerial, satellite dish, master antenna, cable system, or other apparatus for the transmission or reception of television, radio, or other signals for the benefit of all or a portion of the Properties.

SECTION 11.8. CLOTHESLINES, STORAGE TANKS, ETC. - No clothes lines shall be erected or installed on any Lot or Common Area, and no clothing, linens or other material shall be aired or dried on the front exterior portion of any Lot. All above-ground storage tanks, storage buildings, mechanical equipment, yard equipment and other similar items on Lots shall be located or screened so as to be concealed from the view of neighboring Lots streets and property located adjacent to the Lot. All trash shall be kept in garbage cans or other similar type containers and shall be stored so as not to be visible from the street adjacent to the Subdivision, private drives therein, or from an adjoining Lot.

SECTION 11.9. PATIOS AND FENCES - Except in the individual patio areas appurtenant to a townhome, no planting or gardening shall be done. No fences, hedges or walls shall be erected or maintained upon said property, except as installed in accordance with the initial construction of the building or as approved by the Association's Board of Directors or their designated architectural committee. Maintenance, upkeep and repairs of any patio shall be the sole responsibility of the individual Lot Owner and not in any manner the responsibility of the Association.

SECTION 11.10. SUBDIVISION OF LOT AND TIME SHARING - No Lot shall be subdivided or its boundary lines changed except with the prior written approval of the Board of Directors of the Association. No Lot shall be made subject to any type of time sharing,fraction-sharing or similar program whereby the right to exclusive use of the Lot rotates among members of the program on a fixed or floating time schedule over a period of years.

SECTION 11.11. FIREARMS - The discharge of firearms within the Properties is prohibited. The term "firearms" shall include: pistols, rifles, "B-B" guns, pellet guns, sling-shots and bow and arrows.

SECTION 11.12. TENTS, MOBILE HOMES AND TEMPORARY STRUCTURES -Except with the express written consent of the ACC., during initial construction within the Properties, no tent, shack, mobile home, or other structure of a temporary nature shall be placed upon a Lot or any part of the Properties. In addition, party tents or similar temporary structures may be erected for a limited period of time for special events.  Notwithstanding anything above, no structure of any kind is permitted without Board approval.

SECTION 11.13. DRAINAGE AND SEPTIC SYSTEMS - Catch basins and drainage areas are for the purpose of natural flow of water only. No obstructions or debris shall be placed in these areas. No Person may obstruct or re channel the drainage flows, drainage swales, storm sewers, or storm drains. Septic tanks and drain fields, other than those installed by or with the consent of the Board of Directors, are prohibited within the Properties.

SECTION 11.14, DUMPING - No trash, ashes, stumps, trees, underbrush or any refuse of any kind or scrap material from any source shall be placed on any tract of land in the Subdivision, any vacant Lot, drive or street in the Subdivision. No Owner or occupant shall dump grass clippings, leaves or other debris, petroleum products, fertilizers or other potentially hazardous or toxic substances, in any drainage ditch within the Properties.

SECTION 11.15. TREE REMOVAL - No trees in Common Areas shall be removed,except for diseased or dead trees and trees needing to be removed to promote the growth of other trees or for safety reasons. In the event of an intentional or unintentional violation of this Section, the violator may be required, by the committee having jurisdiction, to replace the removed tree with one (1) or more comparable trees of such size and number, and in such locations, as such committee ma d rmine necessarily in its sole discretion, to correct the damage.

SECTION 11.16. BUSINESS USE - No trade or business may be conducted in or from any Lot, except that an Owner or occupant residing in a Lot may conduct business activities within the Lot so long as:

(a) the Lot is the principal residence of the Owner or occupant and such business use is merely incidental to the residential use.

(b)the existence or operation of the business activity is not apparent or detectable by sight, sound or smell from outside the Lot;

(c) the business activity conforms to all zoning requirements for the Properties;

(d) the business activity does not involve persons coming onto the Properties who do not reside in the Properties or door-to-door solicitation of residents of the Properties; and

(e) the business activity is consistent with the residential character of the Properties and does not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of other residents of the Properties, as may be determined in the sole discretion of the Board. 

The terms "business" and "trade", as used in this provision, shall be construed to have their ordinary, generally accepted meanings, and shall include, without limitation, any occupation, work or activity undertaken on an ongoing basis which involves the provision of goods or services to persons other than the provider's family and for which the provider receives a fee, compensation, or other form of consideration, regardless of whether: (i) such activity is engaged in full or part-time; (ii) such activity is intended to do or does generate a profit; or (iii) a license is required therefore. Notwithstanding the above, the leasing of a Lot shall not be considered a trade or business within the meaning of this section.

SECTION 11.17. ON-SITE FUEL STORAGE - No on-site fuel storage of gasoline,heating or other fuels shall be permitted on any part of the Properties except that up to five (5) gallons of fuel may be stored on each Lot for emergency purposes and operation of lawn mowers and similar tools or equipment, and the Association shall be permitted to store fuel for operation of maintenance vehicles, generators and similar equipment.

SECTION 11.18. LEASING OF LOTS -

(a) Definition. "Leasing," for purposes of this Declaration, is defined as regular, exclusive occupancy of a Lot by any person or persons other than the Owner for which the Owner receives any consideration or benefit, including, but not limited to a fee, service, or gratuity.

(b) Leasing Provisions.  (i) General. Lots may be rented only in their entirety; no fraction or portion may be rented. Individual Lots may be leased at the Lot Owners discretion. All contracts relating to lease arrangements shall be carried forth between Owner and the lessee and shall only involve the Board if the lessee fails to take reasonable care of the Lot's exterior in keeping with the aforementioned Community-Wide Standard. (ii) Compliance with Declaration, Bylaws and Rules and Regulations. Every Owner shall cause all occupants of his or her Lot to comply with the Declaration, Bylaws, and the Rules and Regulations adopted pursuant thereto, and shall be responsible for all violations and losses to the Common Areas caused by such occupants, notwithstanding the fact that such occupants of a Lot are fully liable and may be sanctioned for any violation of the Declaration, Bylaws, and Rules and Regulations adopted pursuant thereto. (iii) Further, any lease to a family shall fall under the term "family residential for leasing purposes" and shall be defined as: (a) one or more persons related by blood, marriage, or adoption not to exceed four (4) persons per residence; (b) no more than two unrelated persons living together as a single housekeeping unit and their children not to exceed four (4) persons per residence

SECTION 11.19. LAWS AND ORDINANCES - Every Owner and occupant of any Lot, their guests and invitees, shall comply with all laws, statutes, ordinances and rules of federal, state and municipal governments applicable to the Properties and any violation thereof may be considered a violation of this Declaration; provided the Board shall have no obligation to take action to enforce such laws, statutes, ordinances and rules.

SEC110N 11.20. WATER AND MINERAL OPERATIONS - No oil or water drilling, oil or water development operations, oil refining, quarrying or mining operations of any kind shall be permitted on any Lot. No derrick or other structure designed for use in boring for water, oil, natural gas, or other minerals shall be erected and maintained or permitted on any Lot.

SECTION 11.21. CARE-GIVING FACILITIES - No Lot shall be used for the operation of a boarding or rooming house, a residence for transients, a group home, family home,community home, half-way house, personal care facility, custodial care facility, day-care center, rehabilitation center, treatment facility, or residence of unrelated individuals who are engaging in, undertaking, or participating in any group living, rehabilitation, treatment, therapy, or training with respect to previous or continuing criminal activities or convictions, alleged criminal activities, alcohol or drug dependency, physical or mental handicaps or illness, or other similar matters, unless any such facility is otherwise allowed by the terms of any law specifically negating the provisions of restrictive covenants prohibiting same.

SECTION 11.22. GARAGE, YARD AND ESTATE SALES - No garage, yard, or estate sales shall be allowed on any Lot unless otherwise approved by the Board of Directors.

SECTION 11.23. FIXTURES AND EQUIPMENT WITHIN A TOWNHOME - All fixtures and equipment installed within a townhome, commencing at a point where the utility lines, wires, conduit or systems enter the exterior walls of the townhome, shall be maintained and kept in repair by the Owner thereof. An Owner shall do no act nor any work that will impair the structural soundness or integrity of another townhome or impair any easement or hereditament, nor do any act nor allow any condition to exist which will adversely affect the other townhomes or their Owners.

ARTICLE XII
EASEMENTS

SECTION 12.1. Each townhome and the property included in the Common Area shall be subject to an easement for encroachments created by construction, settling and overhang of the structures built by Declarent. A valid easement for said encroachment and for the maintenance of same, so long as they stand, shall and does exist. In the event a multi-family building containing two or more townhomes is partially or totally destroyed and then rebuilt, the Owners of the townhomes agree that valid easements shall exist for any encroachment resulting  therefrom.

SECTION 12.2. EASEMENTS FOR UTILITIES, ETC. - There are hereby reserved blanket easements upon, across, over, and under all of the Properties for ingress, egress,installation, replacing, repairing, and maintaining cable television systems, master televisionantenna systems, security, and similar systems, roads, walkways, bicycle pathways, drainage systems, street lights, signage, and all utilities, including, but not limited to, water, sewers, meter boxes, telephones, gas, and electricity; provided, the exercise of the easement shall not unreasonably interfere with the use of any Lot and, except in an emergency, entry into any Lot shall be made only after reasonable notice to the Owner or occupant thereof. Without limiting the generality of the foregoing, there are hereby reserved for the local water supplier, electric company, and natural gas supplier easements across all Lots and the Common Areas for ingress, egress, installation, reading, replacing, repairing, and maintaining utility meters and boxes. Notwithstanding anything to the contrary contained in this Section, no sewers, electrical lines, water lines, or other utilities may be installed or relocated on the Properties, except as may be approved by the Association's Board of Directors. Should any entity furnishing a service covered by the general easement herein provided request a specific easement by separate recordable document, the Board of Directors shall have the right to grant such easement over the Properties without conflicting with the terms hereof. The easements provided for in this Article shall in no way adversely affect any other recorded easement on the Properties.

SECTION 12.3. Underground single phase electric service shall be available on all residential townhomes within the Property and to any recreation buildings to be constructed on the Common Area and the metering equipment shall be located on the exterior surfaces of their walls at a point to be designated by the utility company. The utility company furnishing the service shall have a two foot wide easement along and centered on the underground electric power service conductors installed from the utility company's easement to the designated point of service on the townhome building.

SECTION 12.4. Neither Declarant nor any utility company using the easement shall be liable for any damage done by any entity, its employees, or agents, to shrubbery, trees, flowers or other improvements located on the land while furnishing a service covered by said easement.

SECTION 12.5. The Owner of the respective Lots shall not be deemed to separately own pipes, wires, conduits, or other service lines running through their property which are utilized for or serve other Lots, but each Owner shall have an easement in and to the aforesaid facilities and shall be necessary for the use, maintenance and enjoyment of his Lot.

SECTION 12.6. Easements and alleys for the installation and maintenance of utilities and drainage facilities may be recorded in the office of the County Clerk of Harris County, Texas, by instrument as provided in Section 12.2 above. Copies of these shall be kept on file in the initial registered office of the Association. No shrubbery, fence or other obstruction shall be placed in any easement or alleyways. Right of use for ingress and egress shall be had at all times over dedicated easement, and for the installation, maintenance, operation, repair or removal of any utility, together with the right to remove any obstruction that may be placed in such easement, that would constitute interference with the use, maintenance, operation or installation of such utility.

ARTICLE XIII
GENERAL PROVISIONS

SECTION 13.1. DURATION - The covenants and restrictions of this Declaration shall run with and bind the Properties, and shall inure to the benefit of and shall be enforceable by the Association or the Owner of any property subject to this Declaration, their respective legal representatives, heirs, successors, and assigns, for a term of twenty (20) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years, unless amended or terminated as hereinafter set forth.

SECTION 13.2. AMENDMENT - The terms of this Declaration may be amended at any time by an instrument signed by those Owners owning at least two-thirds (2/3) of the Lots within the Subdivision. No person shall be charged with notice of or inquiry with respect to any amendment until and unless it has been filed for record in the Official Public Records of Real Property of Harris County, Texas.

Declarant reserves and shall have the right at any time, from time to time, without the joinder or consent of any Person or Owner, to amend this Declaration by an instrument in writing duly signed, acknowledged and filed of record, for the purpose of correcting any typographical error, ambiguity or inconsistency appearing in this Declaration, provided that any such amendment shall be consistent with and in furtherance of the general plan and scheme of development as evidence in this Declaration, and shall not impair the vested property rights of an Owner or his mortgagee.

SECTION 13.3. INDEMNIFICATION - The Association shall indemnify every officer,director, and committee member against any and all expenses, including counsel fees, reasonably incurred by or imposed upon such officer, director, or committee member in connection with any action, suit, or other proceeding (including settlement of any suit or proceeding, if approved by the then Board of Directors) to which he or she may be a party by reason of being or having been an officer, director, or committee member. The officers, directors, and committee members shall not be liable for any mistake of judgment, negligent or otherwise, except for their own individual willful misfeasance, malfeasance, misconduct, or bad faith. The officers and directors shall have no personal liability with respect to any contract or other commitment made by them, in good faith, on behalf of the Association (except to the extent that such officers or directors may also be Members of the Association), and the Association shall indemnify and forever hold each such officer and director free and harmless against any and all liability to others on account of any such contract or commitment, Any right to indemnification provided for herein shall not be exclusive of any other rights to which any officer, director, or committee member, or former officer, director, or committee member may be entitled. The Association shall, as a Common Expense, maintain adequate general liability and officers' and directors' liability insurance to fund this obligation, if such insurance is reasonably available.

SECTION 13.5. SEVERABILITY - Invalidation of any one 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 13.6. LITIGATION - No judicial or administrative proceeding shall be commenced or prosecuted by the Association unless approved by an affirmative vote of two-thirds (2/3) of the Members present in person at a meeting duly called for such purpose. This Section shall not apply, however, to (a) actions brought by the Association to enforce the provisions of this Declaration (including, without limitation, the foreclosure of liens), (b) the imposition and collection of assessments as provided in Article IV hereof, (c) proceedings involving challenges to ad valorem taxation, or (d) counterclaims brought by the Association in proceedings instituted against it.

SECTION 13.7. COMPLIANCE - Every Owner and occupant of any Lot shall comply with all lawful provisions of this Declaration, the Bylaws and Rules and Regulations of the Association. Failure to comply shall be grounds for an action to recover sums due, for damages or in junctive relief, or for any other remedy available at law or in equity, maintainable by the Association or, in a proper case, by any aggrieved Lot Owner or Owners. In addition, the Association may avail itself of any and all remedies provided in this Declaration or the Bylaws.

SECTION 13.8. SECURITY - The Association may, but shall not be obligated to,maintain or support certain activities within the Properties designed to make the Properties safer than they otherwise might be. The Association shall in no way be considered insurers or guarantors of security within the properties, and the Association, shall not be held liable for any loss or damage by reason or failure to provide adequate security or ineffectiveness of security measures undertaken. Each Owner and occupant of any Lot, and each tenant, guest and invitee of any Owner, as applicable, acknowledges and understands that the Association, its board of directors and committees, are not insurers and that each Owner and occupant of any Lot and each tenant, guest and invitee of any Owner assumes all risks for loss or damage to persons, to Lots, townhomes, outlying buildings and structures, vehicles, their contents and personal property.

SECTION 13.9. NUMBER AND GENDER - Pronouns, whenever used herein, and of whatever gender, shall include natural persons and corporations, entities, and associations of every kind and character, and the singular shall include the plural, and vice versa, whenever and as often as may be appropriate.

SECTION 13.10. DELAY IN ENFORCEMENT - No delay in enforcing the provisions of this Declaration with respect to any breach or violation thereof shall impair, damage or waive the right of any party entitled to enforce the same to obtain relief against or recover for the continuation or repetition of such breach or violation or any similar breach or violation thereof at any later time.

SECTION 13.11. ENFORCEABILITY - This Declaration shall run with the Subdivision and shall be binding upon and inure to the benefit of and be enforceable by the Association and each Owner of a Lot in the Subdivision, or any portion thereof, and their respective heirs, legal representatives, successors and assigns. In the event any Person shall violate or attempt to violate any of the provisions of the Declaration, the Association, or the Owner of a Lot within the Subdivision, or any portion thereof, may institute and prosecute any proceeding at law or in equity to abate, preempt or enjoin any such violation or attempted violation or to recover monetary damages caused by such violation or attempted violation, and shall be entitled to recover reasonable attorney's fees from the Owner or occupant of a Lot who violated this Declaration.

SECTION 13.12. RIGHT OF ENTRY; ENFORCEMENT BY SELF HELP - The Association shall have the right, in addition to and not in limitation of all the rights it may have under this Declaration, to enter upon any Lot, including any improvements located thereon, if deemed reasonably necessary by the Board of Directors of the Association for emergency, health, safety and/or security purposes to make repairs to improvements, secure the Property or abate or remove things or conditions which are potentially hazardous or which violate any provisions of this Declaration. Such right may be exercised by the Association's Board, officers, agents, employees, managers, and all police officers, fire fighters, ambulance personnel, and similar emergency personnel in the performance of their respective duties. Except in an emergency situation, the Association shall first attempt to provide reasonable notice to the last known Owner of the Lot. All costs of such efforts, including reasonable attorney's fees actually incurred, shall be assessed against the Owner of the Lot and shall be collected as provided for herein for the collection of the Assessments.

SECTION 13.13. VIOLATIONS OF LAW - Any violation of any federal, state,municipal, or local law, ordinance, rule, or regulation, pertaining to the ownership, occupation, or use of any property within the Subdivision hereby is declared to be a violation of this Declaration and shall be subject to any and all of the enforcement procedures set forth in this Declaration.

SECTION 13.14. REMEDIES CUMULATIVE - Each remedy provided under this Declaration is cumulative and not exclusive.

SECTION 13.15. NO REPRESENTATIONS OR WARRANTIES - No representations or warranties of any kind, express or implied, shall be deemed to have been given or made by Declarant or its agents or employees in connection with any portion of the Subdivision, or any improvement thereon, its or their physical condition, compliance with applicable laws, fitness for intended use, or in connection with the subdivision, sale, operation, maintenance, cost of maintenance, taxes, or regulation thereof, unless and except as specifically shall be set forth in writing.

SECTION 13.16. LIMITATION ON LIABILITY - Neither the Association, the Board, the Architectural Control Committee, Declarant, or any officer, agent, or employee of any of the same acting within the scope of their respective duties described in this Declaration shall be liable to any Person for any reason or for any failure to act if the action or failure to act was in good faith and without malice.

SECTION 13.17. CAPTIONS FOR CONVENIENCE - The titles, heading, captions,article and section numbers used in this Declaration are intended solely for convenience of reference and shall not be considered in construing any of the provisions of this Declaration.Unless the context otherwise requires, references herein to articles and sections are to articles and sections of this Declaration.

Section 13.18. CONFLICTS WITH THE CORNERSTONE VILLAGE NORTH

SECTION 2 COVENANTS - In the event any clause, sentence, paragraph, sub-section, or section of this Declaration shall be inconsistent with the Cornerstone Village North Section 2 Covenants, then the latter shall be controlling. Nothing in this Declaration shall be construed to confer upon the Declarant the right to amend or in any manner change the Cornerstone Village North Section 2 Covenants.

SECTION 13.19. GOVERNING LAW - This Declaration shall be construed and governed under the laws of the State of Texas.

 

Pursuant to Section 13.2 of the original Declaration of Covenants, Conditions & Restrictions for The Oaks of Cornerstone Townhomes (Phase I), dated May 10, 1996, and filed in the Official Public Records of Harris County, Texas on May 13, 1996, recording reference R923313, by this instrument being signed by owners of 2/3 of the lots within the subdivision, the Declaration of Covenants, Conditions & Restrictions for The Oaks of Cornerstone Townhomes (Phase I) are hereby amended  on 10/3/2012.