ETOWAH'S REACH PROPERTY OWNERS ASSOCIATION

DECLARATION for ETOWAH’S REACH

A Planned Community in Henderson County, North Carolina

THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF
POLITICAL SIGNS

Replaces the Declaration Dated August 2004 (Deed Book 1195, Page 640) which
replaced the Declaration Dated May 1991 and its Amendment Dated May 1992 (Deed
Book 775, Page 351 and Deed Book 798, Page 826 Respectively

September 2008

This website copy may not be as current as the official version adopted by the Board of Directors of the Etowah's Reach Property Owners Association and which can be viewed by contacting the Secretary of the Association.  Board actions will change the Declaration from time to time and such official changes will not be immediately incorporated into this website copy.



       CONTENTS

1.    Etowah’s Reach Planned Community

2.    Description of Etowah’s Reach
       Section 2.1     Name
       Section 2.2     Location
       Section 2.3     Composition

3.   Lots
       Section 3.1     Lot Descriptions
       Section 3.2     Allocated Interests

4.   Common Elements
       Section 4.1     Common Elements
       Section 4.2     Conveyance or Encumbrance
       Section 4.3     Use
       Section 4.4     Restrictions

5.    Association of Lot Owners
       Section 5.1     Association Authority
       Section 5.2     Association Membership
       Section 5.3     Powers and Duties

6.    Use Restrictions and Purpose
       Section 6.1     Restrictions in General
       Section 6.2     Residential
       Section 6.3     Business Activities
       Section 6.4     Construction
       Section 6.5     Vehicles
       Section 6.6     Animals
       Section 6.7     Subdividing
       Section 6.8     Nuisances
       Section 6.9     Lawful Use
       Section 6.10   Rules and Regulations
       Section 6.11   Leasing
       Section 6.12   Time-Sharing
       Section 6.13   Water Flow
       Section 6.14   Political Signs      

7.   Insurance
      Section 7.1     Coverage

8.    Damage, Repair, and Reconstruction of Common Elements
       Section 8.1     Duty to Repair
       Section 8.2     Repair and Reconstruction

9.   Easements and Additional Rights
       Section 9.1     Enjoyment of Common Elements
       Section 9.2     Utility Easements

10.  Assessment and Collection of Common Expenses
       Section 10.1   Purpose of Assessments
       Section 10.2   Apportionment of Expenses 
       Section 10.3   Expenses Attributable to Fewer than All Lots
       Section 10.4   Lien for Assessments
       Section 10.5   Annual Assessment
       Section 10.6   Personal Liability of Lot Owners
       Section 10.7   Liability for Common Expenses
       Section 10.8   Special Assessments

11.  Fiscal  Responsibility

12.  Leases and Sales
       Section 12.1   Renting or Leasing of a Residence
       Section 12.2   Sale of Residence

13. Architectural Standards and Controls
       Section 13.1   Dwelling Type
       Section 13.2   Dwelling Height
       Section 13.3   Dwelling Appearance
       Section 13.4   Dwelling Exterior
       Section 13.5   Dwelling Location
       Section 13.6   Antennas
       Section 13.7   Approval
       Section 13.8   Solar Collectors

14. Maintenance Responsibility
       Section 14.1   By the Association
       Section 14.2   Restrictions on Lot Owners
       Section 14.3   Responsibility for Damages
       Section 14.4   Insurance Deductibles

15. Enforcement Procedures
       Section 15.1   Violation Identification
       Section 15.2   Hearing
       Section 15.3   Demand
       Section 15.4   Sanction

16.  Condemnation

17.  Miscellaneous Provisions
       Section 17.1   Gender
       Section 17.2   Captions
       Section 17.3   Waiver
       Section 17.4   Invalidity
       Section 17.5   Conflict
       Section 17.6   Disputes
       Section 17.7   Grandfathering
       Section 17.8   Appeals

18. Amendments
 
19.  Renewal and Termination
 
20. Definitions
       Section 20.1    Declaration
       Section 20.2    Bylaws
       Section 20.3    Documents
       Section 20.4    Association
       Section 20.5    Board
       Section 20.6   Agenda
       Section 20.7   Voting Quorum
       Section 20.8    Ballot
       Section 20.9   Voting
       Section 20.10  Eligible Voter
       Section 20.11  Lot
       Section 20.12  Lot Owner
       Section 20.13  Association Member
       Section 20.14  Renter
       Section 20.15  Common Expenses
       Section 20.16  Operating Budget
       Section 20.17  Capital Budget
       Section 20.18  Operating Fund
       Section 20.19  Reserve Fund
       Section 20.20  Contingency
       Section 20.21  Assessments
       Section 20.22  Reasonable Attorneys’ Fees
       Section 20.23  Political Sign

Appendix A.     North Carolina Planned Community Act
Appendix B.     Description of the Property Known as Etowah’s Reach


Article 1

Etowah’s Reach Planned Community
   
Etowah’s Reach, a Planned Community, shall not be bound by the provisions of the North Carolina Planned Community Act (N.C. Gen. Stat., Chapter 47F) in its entirety nor shall Etowah’s Reach be bound by Section 47F-3-107.1. As required by the North
Carolina Planned Community Act for planned communities formed prior to January 1, 1999, Etowah’s Reach will be governed by Sections: G.S. 47F-3-102 “Powers of owners’ association” (1) through (6) and (11) through (17); G.S. 47F-3-107 “Upkeep of
planned community; responsibility and assessments for damages” (a), (b), and (c), G.S. 47F-3-115 “Assessments for common expenses”, and G.S. 47F-3-116 “Lien for assessments”. The full text of these Sections are in Appendix A.

Article 2

Description of Etowah’s Reach

Section 2.1  Name.  The name of the Planned Community is Etowah’s Reach.

Section 2.2  Location.  Etowah’s Reach is located in Henderson County, North Carolina.  Metes and bounds, descriptions, constituting Etowah’s Reach are in Appendix B, which is the same description attached to the Original Declaration recorded in Deed Book 707 at Page 321 of the Henderson County Registry of Deeds.  It is also the real property depicted on plats recorded in Plat Cabinet A at Slide 309A and Slide 310 of the Henderson County Registry.

Section 2.3  Composition.  Etowah’s Reach is made up of ninety-eight separate lots plus common elements which are for the use and enjoyment of lot owners.


Article 3

Lots

Section 3.1  Lot Descriptions.  There are ninety-eight (98) separate Lots in Etowah’s Reach.  These Lots are shown and described on plats recorded in the Henderson County Registry and particularly described in the deeds of individual lot owners.

Section 3.2  Allocated Interests.  The allocated interest in the common expense liability of and votes in the Etowah’s Reach Property Owners Association, Inc. for each Lot is equal.  There are ninety-eight (98) Lots, so the interest of each Lot is 1.0204 percent. Common expenses shall be shared by Lot Owners on the basis of the allocated interest of each Lot.  Each Lot shall have one (1) vote on every matter for which a vote of the membership of the  Association is required by the Documents.


Article 4

Common Elements

Section 4.1  Common Elements.  Common Elements are the properties and facilities in Etowah’s Reach owned by the Association.

Section 4.2  Conveyance or Encumbrance.  The Common Elements shall be neither encumbered nor conveyed except as provided in this Declaration, the Bylaws, and Section 47F-3-115 of the Planned Community Act.

Section 4.3  Use.  Each owner of a Lot shall have an easement over and the right to use the Common Elements in accordance with the purposes for which they are intended without hindering the exercise of or encroaching upon the rights of owners of other Lots.  The Board shall, if any question arises, determine the purpose for which a part of the Common Elements is intended for use.  The Board shall have the right to put into effect rules and regulations limiting the use of some or all of the Common Elements and to put into effect rules and regulations to provide for the exclusive use of a part of the Common Elements for special occasions, which exclusive use may be conditioned upon, among other things, payment of a fee. Any lot owner may delegate, in accordance with the provisions of this Declaration, the Bylaws, and Rules and Regulations, the right to use the Common Elements to immediate family members living on the Lot, to a limited number of guests, or to tenants who reside on the Lot.

Section 4.4  Restrictions.
       
(a) Construction. Construction on and making structural alterations or modifications, excluding emergency repairs and replacement, to any of the Common Elements requires Association approval.  This approval is described in Article 10, Section 10.8 of this Declaration.

(b)  Prohibitions.

(1)  The Common Elements shall not be used for temporary or permanent storage of supplies, personal property, trash, or refuse of any kind.

(2)  No activities shall take place on the Common Elements, if such activities should despoil, or tend to despoil, the appearance of Etowah’s Reach.

(c) Ownership Restrictions.  The Association shall not abandon, partition, partition proceeding, subdivide, sell or transfer any portion of the Common Elements unless the Association is terminated in accordance with Article 19 of this Declaration.
                   

Article 5

Association of Lot Owners

Section 5.1 Association Authority.  The Association shall manage and administer the affairs of Etowah’s Reach and shall have all powers and duties granted to it in the  Documents (Documents are defined in Article 20, Section 20.3).

Section 5.2  Powers and Duties.  The Association shall have the powers and duties necessary for the administration of the affairs of Etowah’s Reach which shall include, but not be limited to, those described in Section 47F-3-102 (1) through (6) and (11) through (17) of the Planned Community Act.
               

Article 6

Use Restrictions

Section 6.1 Restrictions in General. The Lots and Common Elements of the Etowah’s Reach are subject to the restrictions contained in this Declaration and as may be set forth in the Bylaws and Rules and Regulations of the Association.  The acceptance of a deed or the exercise of any incident of ownership or the entering into a lease or the entering into occupancy of a Lot constitutes agreement that the provisions of the Declaration, Bylaws, and Rules and Regulations are accepted by and are binding on all Lot Owners and their families, renters, and guests.

Section 6.2 Residential.  Each of the Lots in the Etowah’s Reach shall be restricted exclusively to single-family residential use and shall be occupied only by a single family, its nurses, aides, servants, or caretakers, and guests.

Section 6.3  Business Activities.  The Lots and Common Elements of Etowah’s Reach shall not be used in any way or for any purpose which may endanger the health of or unreasonably disturb the owner of any Lot or any resident thereof.  The Board shall, in its sole discretion, determine what constitutes business activity, health hazard, or unreasonable disturbance. 

Section 6.4  Construction.  There shall not be erected on any Lot an addition to a dwelling, a detached structure, or a replacement structure except in accordance with Article 13 of this Declaration.

Section 6.5 Vehicles. 
(a) Self propelled and towed licensed and unlicensed vehicles such as recreational vehicles, motor homes, conversion vans, campers, ATVs, utility trailers, boats, boat trailers, and similar vehicles must be stored in a garage behind closed doors. These vehicles may be parked outdoors on the LOT for loading, unloading, and minor maintenance for up to seventy-two (72) hours without approval of the Board, but not more frequently than three such periods per month. The parking area in front of the Clubhouse can be used as an alternative parking area with prior Board approval.
(b). Vehicles used by the Lot owner or family members, or house guests for obvious commercial purposes as indicated by words or symbols on the vehicles or visible equipment must be parked overnight behind closed garage doors.

Section 6.6  Animals.  Only domesticated indoor pets may be kept in Etowah’s Reach. Pets may not be commercially bred. Pets shall have such care and restraint as is necessary to prevent them from being or becoming obnoxious or offensive on account of noise, odor, unsanitary conditions, or other nuisance.  Whenever such pet leaves the lot, then the pet must be restrained by a leash and any animal droppings which occur during such time must be immediately collected by the owner.  Felines are an exception to the preceding ‘pets must be restrained by a leash’ condition, however, when outside the residence, felines must wear a collar fitted with an audible bell. Service animals for persons with disabilities are the exception.

Section 6.7  Subdividing.  No Lot may be divided or subdivided into smaller lots, nor any portion thereof sold or otherwise transferred.
                   
Section 6.8  Nuisances.  No nuisances shall be allowed in Etowah’s Reach and no person shall engage in any use, practice, or activity upon such Lot which is noxious, offensive, or a source of annoyance to owners and occupants of other Lots or which reasonably interferes with the peaceful possession and proper use of any Lot.  All parts of Etowah’s Reach shall be kept in a clean and non hazardous condition.  Any lot owner (or his family, tenants, guests or agents) who dumps or places trash or debris upon any portion of Etowah’s Reach shall be liable for its removal and damage correction.

Section 6.9  Lawful Use.  No immoral, improper, or unlawful use shall be made of Etowah’s Reach nor any part thereof.  All valid laws, zoning ordinances, and regulations of governmental bodies having jurisdiction thereof shall be observed.

Section 6.10  Rules and Regulations.  The Board may from time to time put into effect reasonable rules and regulations consistent with the covenants set out in this Article.  Such rules and regulations shall  not weaken or amend the covenants. Rules and regulations shall be binding upon owners and occupants of all Lots until canceled or modified at an annual or a special association meeting.  Canceling or modifying requires a quorum of sixty-nine (69) eligible voters and a minimum of fifty-two (52) affirmative votes. Such rules and regulations shall be enforced by the Board in accordance with the Declaration and By-Laws to include, but not be limited to, the imposition of  penalties.

Section 6.11  Leasing.  Leasing of a house on any Lot shall be conducted as set forth in Article 12 of this Declaration.

Section 6.12  Time-Sharing.  Time-sharing and time shares  in Etowah’s Reach and any activity defined by G.S. 47A “Unit Ownership” is prohibited.

Section 6.13  Water Flow.  The control of water flow by way of inlets, culverts, ditches, swales, surface gradients, and the like that were provided during the development of Etowah’s Reach shall not be altered in any manner which will cause such water to be unnaturally retained on an adjacent lot or which will cause water to flow on to an adjacent lot at a different place or in a different manner.  Lot owners may alter the existing control of  water flow only when affected lot owners fully agree on the alteration and only when it can be guaranteed that the alteration will not change the situations on streets and lots upstream and downstream from their lots.  Etowah’s Reach is not in a flood plain.                

Section 6.14 Political Signs. A single rectangular political sign with maximum dimensions of 24 inches by 24 inches may be placed on the lot providing it is not displayed earlier than 45 days before the day of the applicable election and later than 7 days after the applicable election day. Political signs of any type shall not be displayed at any time in any window or on the exterior of any residence.


Article 7 

Insurance

Section 7.1  Coverage.  The Association shall obtain and maintain insurance coverage as a common expense for, but not limited to, damage and destruction to common elements and structures thereon and legal liabilities of the Association and its representatives.


Article 8

Damage, Repair and Reconstruction of Common Elements

Section 8.1  Duty to Repair.  In the event that all or any part of the Common Elements of Etowah’s Reach shall be damaged or destroyed, the common elements shall be repaired or replaced and proceeds of insurance shall be used for that purpose.

Section 8.2  Repair and Reconstruction.  The Board or its duly authorized agents shall arrange for the prompt repair and reconstruction of all damaged Common Elements and structures thereon.  The procedure for repair and construction shall be as follows:
 
(a)  Cost Estimates.  Immediately after a fire or other casualty causing damage to the common elements, the Board shall obtain reliable and detailed estimates of the cost of repairing and restoring any structures to a condition as good as that existing before such casualty.  Such costs may also include professional fees and premiums for such bonds as the Board determines to be necessary.  Any contract awarded to a contractor shall require that the contractor be licensed, be bonded, and have liability insurance.
 
(b)  Source and Allocation of Proceeds.  If the proceeds of insurance are not sufficient to defray the said estimated costs of reconstruction and repair, or if at any time during the reconstruction and repair or upon completion of reconstruction and repair the funds for the payment of the costs thereof are insufficient, the Association may elect to use available monies in the Reserve Funds provided replacement is accomplished one (1) year prior to when the obligated reserve fund monies are needed.  If borrowing from the Reserve Funds does not provide sufficient monies, assessments shall be made against all Lots. Such assessments require Association approval. This approval requires a quorum of eighty (80) eligible voters and a minimum of sixty-six (66) affirmative votes. If, after repair and reconstruction is completed, there is a surplus of funds, such funds shall be returned to the lot owners who were assessed.

(c)  Reconstruction Fund.  The net proceeds of the insurance collected on account of a casualty and the funds from assessments shall constitute a reconstruction fund which shall be disbursed in payment of the cost of reconstruction and repair in the manner set forth in this Section.

(d)  Method of Disbursement.  The reconstruction fund shall be disbursed by the Board in appropriate progress payments to such contractor(s) performing the work or supplying materials or services for the repair and reconstruction of the buildings and grounds. All contracts shall include lien waivers.


Article 9

Easements and Additional Rights

Section 9.1  Enjoyment of Common Elements.  Every owner of a Lot shall have a right and easement of enjoyment in, to and over the Common Elements, and the easement granted herein shall be an addition to and shall pass with the title to every Lot, subject to the following provisions:

(a) The right of the Association to suspend the voting rights and rights to use of the Common Elements by an owner of a Lot for any period during which any assessment against that Lot remains unpaid for a period of sixty (60) days or more or for any infraction of its published rules and regulations ( Appendix A, Section 47F-03-102, Items 11&12);

(b) The right of the Association to limit the number of guests on the Common Elements;

(c) The right of the Association to determine the time and manner of use of the Common Elements by owners of Lots.

(d) If the owner of a Lot leases his/her residence, that owner shall transfer and assign to the lessee for the term of the lease any and all rights and privileges that the owner has to use the Common Elements.  That owner, shall during the term of such lease, have no rights to the use of  the Common Elements unless invited as a guest.

Section 9.2 Utility Easements.  Should any utility company request a specific easement on the Common Elements, the Board, with guidance from the members of Association, shall have the right to grant such easement.
                       

Article 10

Assessment and Collection of Common Expenses

Section 10.1 Purpose of Assessments.  The assessments for common expenses shall be for those common expenses as described in Section 47F-3-115 of the Planned Community Act and as otherwise provided for in the Documents.

Section 10.2  Apportionment of Expenses.  Except as set forth in this Article, common expenses of the Association shall be assessed against all Lots in accordance with the allocated interests in the common expenses as set forth in this Declaration.

Section 10.3  Expenses Attributable to Fewer than All Lots.

(a) If any common expense is caused by the negligence or misconduct of any lot owner(s) or lot occupant(s), the Association may assess that expense exclusively against those Lot(s).       
                   
(b) Fees, charges, late charges, fines, all collection costs, including reasonable attorney's fees actually incurred and interest charged against a Lot Owner pursuant to Declaration, the Bylaws and the Rules and Regulations are enforceable as common expense assessments.

Section 10.4 Lien for Assessments.  Liens for assessments are as described in Section 47F-3-116 of the Planned Community Act and as otherwise provided for in the Documents.

Section 10.5 Annual Assessment.  The annual assessment covering the estimated operating costs of the Association for the coming calendar year shall be determined prior to December 31 of the year preceding the year for which the assessment has been made.

Section 10.6 Liability of Lots.  At the time any Lot common expense assessment or portion thereof is due and payable, the lot owner is personally liable for such assessment, for any interest, if applicable, and for all costs of collection including, but not limited to, reasonable attorney's fees actually incurred.

Section 10.7 Liability for Common Expenses.  No Lot shall be exempt  from liability for payment of the common expenses by the lot owner’s waiver of the use or enjoyment of the Common Elements or by abandonment of the Lot against which the assessments are made.
           
 Section 10.8 Special Assessments.   The Board may request special assessments for  the repair of and/or construction on the common elements.  Such assessments  shall require Association approval.  This approval requires a quorum of eighty (80) eligible voters and a minimum of sixty-six (66) affirmative votes.


Article 11

Fiscal Responsibility

The Board is charged with the responsibility of the financial well being of the Association. This responsibility shall be discharged by annually submitting to the Members of the Association for their approval of the following:

    (a)  A calendar year operating budget.

    (b)  A calendar year capital budget.

The Board shall maintain a reserve fund that is funded by an end-of-fiscal-year transfer. The amount of the transfer shall be the sum of the calculated contributions needed to build the fund to a level estimated to be adequate at the time of need.

The Board shall provide the Members with monthly fiscal reports.
                       

Article 12

Leases and Sales

In order to protect the value of all the Lots, the sale or leasing of a residence on a Lot shall be subject to the following provisions.                   

Section 12.1 Renting or Leasing of a Residence.  Residences may be rented only in their entirety and only to a single family; no fraction or portion may be rented. All leases and lessees are subject to the provisions of the Declaration, Bylaws, and Rules and Regulations.  The lot owner must make available to the tenant copies of the Declaration, Bylaws, and Rules and Regulations.    

"Leasing" for purposes of this Declaration is defined as regular occupancy of a residence on a Lot by any person other than the lot owner for which the lot owner  receives any consideration or benefit, including a fee, service, gratuity, or gain.

Any lease of a residence in Etowah’s Reach shall be deemed to contain the following provisions, whether or not expressly therein stated, and each lot owner covenants and agrees that any lease of a residence shall contain the following language and agrees that if such language is not incorporated into a lease such covenants nevertheless apply to the residence through the existence of this covenant.  Any lessee, by occupancy in a residence, agrees to the applicability of this covenant and incorporation of the following language into the lease:

    (a) Liability for Assessments. All unpaid common expense assessments, as lawfully determined and made payable during the term of the lease and any other period of occupancy by lessee shall be the responsibility of the owner of the Lot.

    (b) Compliance with Declaration, Bylaws, and Rules and Regulations.  Lessee agrees to abide by and comply with all provisions of the Declaration, Bylaws, and Rules and Regulations adopted pursuant thereto.  Lot owner agrees to cause all occupants of the  Lot to comply with the Declaration, Bylaws, and the Rules and Regulations adopted pursuant thereto, and is responsible for all violations and losses caused by such occupants, notwithstanding the fact that such occupants of the residence are fully liable and may be sanctioned for any violation of the Declaration, Bylaws, and Rules and Regulations adopted pursuant thereto.

Any violation of the adopted Documents is deemed to be a violation of the terms of the lease.  Should the violations impact the well being of the community, the Association may take action against the owner of the Lot in accordance with Article 15 of this Declaration.

Section 12.2 Sale of a Residence. When a residence is sold, the Lot owner shall
(a) provide the Association Secretary and the Association Treasurer with the sale date and the buyer name.
(b) convey to the buyer the binder containing the current Etowah’s Reach governance documents.
(c) have paid the operating assessment up to and including the month of the sale, any unpaid special assessments, and any unpaid fees, fines, etc.

Article 13

Architectural Standards and Control
                   
Lot owners may replace or make exterior changes subject to the provisions of this Article, the Rules and Regulations of the Association, and applicable laws and ordinances.

Section 13.1   Dwelling Type.   Only single family dwellings with a basic heated living area of 1350 sq. ft. or more shall be constructed.

Section 13.2 Dwelling Height.   Dwelling height shall be limited to two living area stories and no more than one story shall face the highest elevation street.

Section 13.3 Dwelling Appearance.   Dwellings shall be constructed consistent with existing dwellings by means of exterior shape and building materials.

Section 13.4 Dwelling Exterior.  No dwelling shall have exposed unfinished concrete or block construction.

Section 13.5 Dwelling Location.  The closest side of a dwelling or attached structure shall be at least 15 feet from the nearest street right-of-way line, at least 10 feet from the rear property line, and at least 8 feet from a side property line.

Section 13.6 Antennas.

(a)  Satellite dishes one (1) meter (39 inches) or less in diameter are permitted.
               
(b)  All other exterior antennas for television, radio, citizen band, ham radio, or any other exterior fixture or appliance for electronic devices or for transmission or receipt of communication signals on a Lot, whether attached to a building or free standing are prohibited.

Section 13.7 Approval.  Prior to exterior construction or reconstruction of any dwelling, portion thereof, or attachment; plans must be submitted through the Architectural Review Committee for Board approval.

Section 13.8 Solar Collectors.  Roof mounted solar collectors are permitted, but location and aesthetics must be approved by the Architectural Review Committee.

Article 14

Maintenance Responsibility

Section 14.1 By the Association. The Association shall maintain and keep in good repair, as a common expense, all Common Element facilities and areas.

 Section 14.2 Restrictions on Lot Owners.  No lot owner shall perform or cause to be performed any maintenance, repair, or replacement work upon his or her Lot which disturbs the rights of the other lot owners.  No Lot or residence thereon shall be devalued by deed.

Section 14.3 Responsibility for Damages.  If damage for which a lot owner is legally responsible is inflicted on the property of another lot owner, the lot owner  responsible for the damage shall repair such damage.

If damage is inflicted on any Lot by an agent of the Association in the scope of his/her activities as such agent, the Association is liable to repair such damage or to reimburse the lot owner for the cost of repairing such damages.  The Association shall also be liable for any losses to the lot owner.
               
Section 14.4 Insurance Deductibles.  If repair of the common elements is required as a result of an insured loss, the amount of the deductible shall be paid by the Association.  However, if such repair is required because of an act or omission of a lot owner, or his or her immediate family member(s), guest(s), tenant(s) or lessee(s),  the lot owner shall pay the amount of the deductible.


Article 15

Enforcement Procedures

Section 15.1 Violation Identification.  Formal consideration by the Board of a violation of the Declaration, Bylaws, or Rules and Regulations shall not take place until a hearing establishes there is a violation.

Section 15.2 Hearing.  The hearing shall be held before the Board or a committee designated by the Board and the alleged violator shall be given an opportunity to present statements, evidence, and witnesses.  The Board or designated committee shall render its decision no later than five (5) days after the hearing.

Section 15.3 Demand.  Upon determining that there is a violation, a written demand to cease and desist shall be served upon the violator within ten (10) days of the Hearing. This written demand shall specify: (i) the violation; (ii) the action required to abate the violation; and (iii) a time period, not less than ten (10) days, during which the violation may be abated without sanction.  However, should the violation persist, a sanction may be imposed.

Section 15.4 Sanction.  If the violation continues past the period allowed in the written demand for abatement, the Board may impose a fine by giving the violator written notice of such within one (1) month of the termination of the period stated in the Demand.


Article 16

Condemnation

If part or all of the Common Elements of Etowah’s Reach are taken by eminent domain, all compensation and damages for and on account of the taking shall be distributed to the Lots in equal parts.


Article 17

Miscellaneous Provisions

Section 17.1 Gender.  The use of the masculine gender also refers to the feminine and neuter genders and the use of the singular includes the plural, and vice versa, whenever the context of the Documents so requires.

Section 17.2 Captions.  The captions used in the Documents are used only for convenience and reference and in no way define, limit, or describe the scope of a particular Document or the intent of any provision thereof.

Section 17.3 Waiver.

(a) No provision contained in the Documents is abolished or waived by reason of any failure to enforce the same, irrespective of the number of violations or breaches which may occur.
(b) A waiver may be granted when a lot owner can show that a strict interpretation of a restriction or rule is not appropriate for the identified situation. A request for a waiver will be accepted only if the Waiver Request form is submitted.

A waiver will not be based on the existence of any non conforming situations in Etowah’s Reach.

The granting of a waiver shall not serve to waive any of the restrictions or provisions of the Etowah’s Reach governance documents for any purpose except as to the particular Lot and the particular provision covered by the waiver.

The decision to grant a waiver shall be made by a Waiver Committee of five (5) residents appointed by the Board of Directors; none of whom are a member of the Board of Directors, the Architectural Review Committee, or the Hearing Committee.

Section 17.4 Invalidity.  The invalidity of any provision of the Documents does not impair or affect in any manner the validity, enforcement, or effect of the remainder, and in such event, all of the other provisions of the Documents shall continue in full force and effect.

Section 17.5 Conflict.  The Documents are intended to comply with applicable  requirements of the North Carolina Planned Community Act and of the North Carolina Nonprofit Corporation Act (N.C. Gen. Stat., Chapter 55-A)  In the event of any conflict between the Documents and the provisions of the statutes, the provisions of the statutes shall control.  In the event of any conflict between this Declaration and any other document, this Declaration shall control.  In the event of any conflict between the Bylaws and the Association’s Rules and Regulations, the Bylaws shall prevail. 

Section 17.6 Disputes.  Lot owners and their family members, tenants and their family members, or guests claiming a right of action against the Association shall agree to mediate the issue.

Section 17.7 Grandfathering.  When these documents go into effect:

(a)  Existing  non compliance situations affecting other lot owners must be identified within three (3) months and brought into compliance within nine (9) months after identification.

(b)  Existing non compliance situations not affecting other lot owners are allowed to remain.  However, when a change is proposed for such a non compliance situation, the change must bring the situation into compliance.

Section 17.8 Appeals.  When the accused violator of a restriction feels that the Hearing Committee did not properly consider all the facts or when a lot owner feels that a request for a waiver was not properly considered by the Waiver Committee, the decision may be appealed. The hearing body for such appeals shall be the Board of Directors.


Article 18

Amendments

This Declaration of Etowah’s Reach may be amended only by the Eligible Voters.  Approval to amend requires a quorum of eighty (80) eligible voters and a minimum of sixty-six (66) affirmative votes. Notice of the Special Meeting at which an amendment will be considered shall state that fact and the subject matter of the proposed amendment.  Amendments shall become effective upon being recorded in the office of the Register of Deeds of Henderson County, North Carolina.


Article 19

Renewal and Termination

This Declaration shall run for twenty-five (25) years from the date of adoption and shall automatically renew for periods of twenty-five (25) years or until such time that an amendment, a new Declaration, or termination shall occur.

Termination of Etowah’s Reach (the Planned Community) shall require Association approval. This approval requires a quorum of eighty-five (85) eligible voters and a minimum of seventy-two (72) affirmative votes.


Article 20

Definitions

The following terms as used in the Declaration and Bylaws for Etowah’s Reach (the Planned Community)  shall have the following meanings:

Section 20.1 Declaration means this restated Declaration for Etowah’s Reach, and including any duly recorded future amendments to the Declaration.
   
Section 20.2 Bylaws means the restated Bylaws of Etowah’s Reach Property Owners Association, Inc.  attached hereto and any future amendments.

Section 20.3 Documents mean the Declaration, Plats and/or Deeds recorded and filed for real property making up Etowah’s Reach, the Articles of Incorporation of Etowah’s Reach Property Owners Association, Inc., the Bylaws, and the Rules and Regulations as they may be amended from time to time.  Any exhibit, schedule, or certification accompanying a Document is part of that Document.

Section 20.4 Association means Etowah’s Reach Property Owners Association, Inc., a North Carolina non-profit corporation and its successors.

Section 20.5 Board means the Board of Directors of Etowah’s Reach Property Owners Association, Inc. which is the governing body on behalf of and for the Association.
 
Section 20.6 Agenda means the list of items of business to be brought before a meeting. Once accepted after the opportunity for agenda revisions, it shall not be changed.

Section 20.7 Voting Quorum means the minimum number of eligible voters that must  cast ballots for decisions to have legal standing.

Section 20.8 Ballot means a confidential form used by eligible voters of the Association to cast their vote.

Section 20.9 Voting means the act of voting on Association business by eligible voters.

Section 20.10 Eligible Voter means the person authorized to cast a vote for a Lot whose voting right has not been suspended in accordance with Article 9, Section 9.1, Paragraph (a) of this Declaration.

Section 20.11 Lot means the physical portion of Etowah’s Reach designated for separate ownership and occupancy. 

Section 20.12  Lot Owner means the legal owner of a lot, but does not include a person having an interest in a lot solely as security for an obligation.

Section 20.13 Association Member means Etowah’s Reach lot owners and family members permanently living with them. Membership in the Association for each person is automatic.

Section 20.14  Renter means a person or a single family renting a home in Etowah’s Reach.  The renter has, if the Lot assessments are paid, the use of the common elements and may participate in all Association social activities.  A renter does not have Association voting privileges.

Section 20.15 Common Expenses mean expenditures made by or financial liabilities incurred for the operation of or connected in any way with Etowah’s Reach.  These include:

(a)  Expenses of administration, maintenance, repair or replacement of the common elements;
(b)  Expenses defined, referred to, or declared to be common expenses by the Documents;
(c) Expenses agreed upon as common expenses by the Association; and
(d)  Such reasonable reserves as may be established or allocated by the Association, whether held in trust or by the Association, for repair, replacement or addition to the common elements or any other real or personal property acquired or held by the Association.

Section 20.16 Operating Budget means a budget that covers reoccurring and necessary expenditures and revenues that allow the Association to function during the fiscal year as required by the Documents.

Section 20.17 Capital Budget means a budget that covers Common Expenses (Section 20.15 above) categorized as capital expenditure projects (replacement, acquisition, and construction) expected to be undertaken within the fiscal year.

Section 20.18 Operating Fund means monies available to pay for day-to-day expenses, emergency expenses, and unexpected expenses.  The Operating Fund consists of all monies not in the Reserve Fund.

Section 20.19 Reserve Fund means monies held in reserve for specific purposes.  See Bylaws Article VII, Section 8.

Section 20.20  Contingency means a classification of budgeted funds for a necessary expense that results from an unforeseen occurrence.

Section 20.21   Assessments means any and all sums levied by the Association against any Lot and its Owner as common expenses or other charges to include but not be limited to common expense liabilities, special assessments, specific assessments, fines, late charges, interest and attorney's fees as set forth in the Declaration and Bylaws.

Section 20.22  Reasonable Attorneys’ Fees means attorneys’ fees reasonably incurred without regard to any limitations on attorneys’ fees which otherwise may be allowed by law.

Section 20.23  Political Sign means a sign that supports or opposes a named issue on a ballot or a candidate or candidates seeking election.


IN WITNESS WHEREOF, the undersigned President of Etowah’s Reach Property Owners Association, Inc. hereby certifies that the above restated Declaration for the Planned Community of Etowah’s Reach and the following restated Bylaws along with attached appendices were duly adopted by the Association and its membership after a community vote on July 27, 2004 conducted in accordance with and pursuant to the Planned Community Act and the Bylaws of the Association.

This the ______ day of September 2008.

                        Etowah’s Reach Property Owners Association, Inc.
                        PO Box 433, Etowah, NC 28729


                            By:      _______________________________
                                            President

                            Attest:  ______________________________
                                             Secretary

STATE OF NORTH CAROLINA
HENDERSON  COUNTY

    I, __________________________, Notary Public for said County and State, certify that __________________________ personally came before me this day and acknowledged that he is Secretary of Etowah’s Reach Property Owners Association, Inc., and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal, and attested by himself as its Secretary.

    Witness my hand and official seal, this the _____ day of September 2008.

                            ________________________________
                            Notary Public

                            My Commission Expires _____________________



APPENDIX A

NORTH CAROLINA PLANNED COMMUNITY ACT

§ 47F-3-102. (See editor's note for applicability) Powers of owners' association.

Subject to the provisions of the articles of incorporation or the declaration and the declarant's rights therein, the association may:
(1) Adopt and amend bylaws and rules and regulations;
(2) Adopt and amend budgets for revenues, expenditures, and reserves and collect assessments for common expenses from lot owners;
(3) Hire and discharge managing agents and other employees, agents, and independent contractors;
(4) Institute, defend, or intervene in litigation or administrative proceedings on matters affecting the planned community;
(5) Make contracts and incur liabilities;
(6) Regulate the use, maintenance, repair, replacement, and modification of common elements;

***(7) through (10) not applicable to Etowah’s Reach ***

(11) Impose reasonable charges for late payment of assessments, not to exceed the greater of twenty dollars ($20.00) per month or ten percent (10%) of any assessment installment unpaid and, after notice and an opportunity to be heard, suspend privileges or services provided by the association (except rights of access to lots) during any period that assessments or other amounts
due and owing to the association remain unpaid for a period of 30 days or longer;
(12) After notice and an opportunity to be heard, impose reasonable fines or suspend privileges or services provided by the association (except rights of access to lots) for reasonable periods for violations of the declaration, bylaws, and rules and regulations of the association;
(13) Impose reasonable charges in connection with the preparation and recordation of documents, including, without limitation, amendments to the declaration or statements of unpaid assessments;
(14) Provide for the indemnification of and maintain liability insurance for its officers, executive board, directors, employees, and agents;
(15) Assign its right to future income, including the right to receive common expense assessments;
(16) Exercise all other powers that may be exercised in this State by legal entities of the same type as the association; and
(17) Exercise any other powers necessary and proper for the governance and operation of the association. (1998-199, s. 1.)
_________
Editor’s Note. - Session Laws 1998-199, s. 3, provides in part that G.S. 47F-3-102(1) through (6)
and (11) through (17) apply to planned communities created prior to the effective date of January 1,1999.

§ 47F-3-107. (See editor's note for applicability) Upkeep of planned community; responsibility and assessments for damages.

(a) Except as otherwise provided in the declaration, G.S. 47F-3-113(h) or subsection (b) of this section, the association is responsible for causing the common elements to be maintained, repaired, and replaced when necessary and to assess the lot owners as necessary to recover the costs of such maintenance, repair, or replacement except that the costs of maintenance, repair, or replacement of a limited
common element shall be assessed as provided in G.S. 47F-3-115(c)(1). Except as otherwise provided in the declaration, each lot owner is responsible for the maintenance and repair of his lot and any improvements thereon. Each lot owner shall afford to the association and when necessary to another lot owner access through the lot owner's lot reasonably necessary for any such maintenance, repair, or replacement activity.
(b) If a lot owner is legally responsible for damage inflicted on any common element, the association may direct such lot owner to repair such damage, or the association may itself cause the repairs to be made and recover damages from the responsible lot owner.
(c) If damage is inflicted on any lot by an agent of the association in the scope of the agent's activities as such agent, the association is liable to repair such damage or to reimburse the lot owner for the cost of repairing such damages. The association shall also be liable for any losses to the lot owner.
_________
Editor’s Note. - Session Laws 1998-199, s. 3, provides in part that G.S. 47F-3-107(a), (b), and (c),
apply to planned communities created prior to the effective date of January 1, 1999.

§ 47F‑3‑107.1. Procedures for fines and suspension of planned community privileges or services.

Unless a specific procedure for the imposition of fines or suspension of planned community privileges or services is provided for in the declaration, a hearing shall be held before the executive board or an adjudicatory panel appointed by the executive board to determine if any lot owner should be fined or if planned community privileges or services should be suspended pursuant to the powers granted to the association in G.S. 47F‑3‑102(11) and (12). Any adjudicatory panel appointed by the executive board shall be composed of members of the association who are not officers of the association or members of the executive board. The lot owner charged shall be given
notice of the charge, opportunity to be heard and to present evidence, and notice of the decision. If it is decided that a fine should be imposed, a fine not to exceed one hundred dollars ($100.00) may be imposed for the violation and without further hearing, for each
day more than five days after the decision that the violation occurs. Such fines shall be assessments secured by liens under G.S. 47F‑3‑116. If it is decided that a suspension of planned community privileges or services should be imposed, the suspension may be
continued without further hearing until the violation or delinquency is cured. The lot owner may appeal the decision of an adjudicatory panel to the full executive board by delivering written notice of appeal to the executive board within 15 days after the date of
the decision. The executive board may affirm, vacate, or modify the prior decision of the adjudicatory body.

§ 47F-3-115. (See editor's note for applicability) Assessments for common expenses.

(a) Except as otherwise provided in the declaration, until the association makes a common expense assessment, the declarant shall pay all common expenses. After any assessment has been made by the association, assessments thereafter shall be made at least annually.
(b) Except for assessments under subsections (c), (d), and (e) of this section, all common expenses shall be assessed against all the lots in accordance with the allocations set forth in the declaration. Any past-due common expense assessment or installment thereof bears interest at the rate established by the association not exceeding eighteen percent (18%) per year. For planned communities created prior to
January 1, 1999, interest may be charged on any past-due common expense assessment or installment only if the declaration provides for interest charges, and where the declaration does not otherwise specify the interest rate, the rate may not
exceed eighteen percent (18%) per year.
(c) To the extent required by the declaration:
(1) Any common expense associated with the maintenance, repair, or replacement of a limited common element shall be assessed against the lots to which that limited common element is assigned, equally, or in any other proportion that the declaration provides;
(2) Any common expense or portion thereof benefiting fewer than all of the lots shall be assessed exclusively against the lots benefitted; and
(3) The costs of insurance shall be assessed in proportion to risk and the costs of utilities shall be assessed in proportion to usage.
(d) Assessments to pay a judgment against the association may be made only against the lots in the planned community at the time the judgment was entered, in proportion to their common expense liabilities.
(e) If any common expense is caused by the negligence or misconduct of any lot owner or occupant, the association may assess that expense exclusively against that lot owner or occupant's lot.
(f) If common expense liabilities are reallocated, common expense assessments
and any installment thereof not yet due shall be recalculated in accordance with the
reallocated common expense liabilities. (1998-199, s. 1.)
__________
Editor’s Note. - Session Laws 1998-199, s. 3 provides in part that this section is applicable to planned communities created prior to the effective date of January 1, 1999.

§ 47F-3-116. (See editor's note for applicability) Lien for assessments.

(a) Any assessment levied against a lot remaining unpaid for a period of 30 days or longer shall constitute a lien on that lot when a claim of lien is filed of record in the office of the clerk of superior court of the county in which the lot is located in the manner provided herein. Unless the declaration otherwise provides, fees, charges, late charges, and other charges imposed pursuant to G.S. 47F‑3‑102, 47F‑3‑107, 47F‑3‑107.1, and 47F‑3‑115 are enforceable as assessments under this section. Except as provided in subsections (a1) and (a2) of this section, the association may foreclose the claim of lien in like manner as a mortgage on real estate under power of sale under Article 2A of Chapter 45 of the General Statutes.
(a1) An association may not foreclose an association assessment lien under Article 2A of Chapter 45 of the General Statutes if the debt securing the lien consists solely of fines imposed by the association, interest on unpaid fines, or attorneys' fees incurred by the association solely associated with fines imposed by the association. The association, however, may enforce the lien by judicial foreclosure as provided in Article 29A of Chapter 1 of the General Statutes.
(a2) An association shall not levy, charge, or attempt to collect a service, collection, consulting, or administration fee from any lot owner unless the fee is expressly allowed in the declaration. Any lien securing a debt consisting solely of these fees may only be enforced by judicial foreclosure as provided in Article 29A of Chapter 1 of the General Statutes.
(b) The lien under this section is prior to all liens and encumbrances on a lot except (i) liens and encumbrances (specifically including, but not limited to, a mortgage or deed of trust on the lot) recorded before the docketing of the claim of lien in the office of the clerk of superior court, and (ii) liens for real estate taxes and other governmental assessments and charges against the lot. This subsection does not affect the priority of mechanics' or materialmen's liens.
(c) A lien for unpaid assessments is extinguished unless proceedings to enforce the lien are instituted within three years after the docketing of the claim of lien in the office of the clerk of superior court.
(d) This section does not prohibit other actions to recover the sums for which subsection (a) of this section creates a lien or prohibit an association taking a deed in lieu of foreclosure.
(e) A judgment, decree, or order in any action brought under this section shall include costs and reasonable attorneys' fees for the prevailing party. If the lot owner does not contest the collection of debt and enforcement of a lien after the expiration of the 15‑day period following notice as required in subsection (e1) of this section, then reasonable attorneys' fees shall not exceed one thousand two hundred dollars ($1,200), not including costs or expenses incurred. The collection of debt and enforcement of a lien remain uncontested as long as the lot owner does not dispute, contest, or raise any objection, defense, offset, or counterclaim as to the amount or validity of the debt and
lien asserted or the association's right to collect the debt and enforce the lien as provided in this section. The attorneys' fee limitation in this subsection shall not apply to judicial foreclosures or to proceedings authorized under subsection (d) of this section or G.S. 47F‑3‑120.
(e1) A lot owner may not be required to pay attorneys' fees and court costs until the lot owner is notified in writing of the association's intent to seek payment of attorneys' fees and court costs. The notice must be sent by first‑class mail to the property address and, if different, to the mailing address for the lot owner in the association's records. The notice shall set out the outstanding balance due as of the date of the notice and state that the lot owner has 15 days from the mailing of the notice by first‑class mail to pay the outstanding balance without the attorneys' fees and court costs. If the lot owner pays the outstanding balance within this period, then the lot owner shall have no obligation to pay attorneys' fees and court costs. The notice shall also inform the lot owner of the opportunity to contact a representative of the association to discuss a payment schedule for the outstanding balance as provided in subsection (e2) of this section and shall provide the name and telephone number of the representative.
(e2) The association, acting through its executive board and in the board's sole discretion, may agree to allow payment of an outstanding balance in installments.  Neither the association nor the lot owner is obligated to offer or accept any proposed installment schedule. Reasonable administrative fees and costs for accepting and processing installments may be added to the outstanding balance and included in an installment payment schedule. Reasonable attorneys' fees may be added to the outstanding balance and included in an installment schedule only after the lot owner has been given notice as required in subsection (e1) of this section.
(f) Where the holder of a first mortgage or first deed of trust of record, or other purchaser of a lot obtains title to the lot as a result of foreclosure of a first mortgage or first deed of trust, such purchaser and its heirs, successors, and assigns, shall not be liable for the assessments against such lot which became due prior to the acquisition of title to such lot by such purchaser. Such unpaid assessments shall be deemed to be common expenses collectible from all the lot owners including such purchaser, its heirs, successors, and assigns.
(g) A claim of lien shall set forth the name and address of the association, the name of the record owner of the lot at the time the claim of lien is filed, a description of the lot, and the amount of the lien claimed. (1998-199, s. 1.)
__________
Editor’s Note. - Sessions Laws 1998-199, s. 3 provides in part that this section applies to planned communities created prior to the effective date of January 1, 1999, except that the provisions of G.S. 47E-3-116(e), apply to actions arising on or after the effective date.



APPENDIX B

DESCRIPTION OF THE PROPERTY KNOWN AS ETOWAH’S REACH

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