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Res 13-33 Approving Deed Restrictions and Declaration of Covenants, Conditions and Restrictions for Granadai � ! :. . . , i , � is ! • ! . .° ! WHEREAS, the Town of Westlake is experiencing planned growth through the attraction of economic development projects such as Fidelity Investments and Deloitte University, residential developments such as Vaquero, Glenwyck Farms, Terra Bella, and Granada which are consistent with the Town's Comprehensive Plan, and WHEREAS, the Town of Westlake (Town) and Maguire Partners, L.P. (the Developer) desire to foster a cooperative partnership to continue this planned growth through a standards that ensure high quality development within the Town in the development known as Granada (the zoning for which was approved in Ordinance No. 693 approved on February 25, 2013), and WHEREAS, Section 14.1 of said Ordinance No. 693 requires establishment of an Architectural Control Committee for Granada of which the Town will have at least one (1) member appointed by the Town Manager, and WHEREAS, the Town Council approved the preliminary plat for Granada on June 25, 2013, and now wishes to approve the Deed Restrictions including Design Guidelines as well as Declaration of Covenants, Conditions, and Restrictions for Granada as required by zoning Ordinance No. 693 for Granada, and WHEREAS, the Town Council fords that the passage of this Resolution is in the best interest of the citizens of Westlake. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF SECTION 1: THAT, all matters stated in the Recitals hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. Resolution 13-33 Page 1 of 2 SECTION 2: THAT, the Town Council of the Town of Westlake, Texas, hereby approves the Granada Design Guidelines attached hereto as Exhibit "A"; as well as the Granada Declaration of Covenants, Conditions and Restrictions attached hereto as Exhibit "B': SECTION 3: If any portion of this Resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Resolution without the invalid provision. SECTION 4: That this resolution shall become effective from and after its date of passage. ATTEST: m� Kelly Edwar , Town Secretary APPROVE�-'O FQR7a Stan -Lowry, To tto Laura Wheat, Mayor Thomas E. rymer, T Manager Resolution 13-33 Page 2 of 2 Exhibit A AFTER RECORDING RETURN TO: Robert D. Burton, Esq. Winstead PC 401 Congress Ave., Suite 2100 Austin, Texas 78701 Email: rburton(dlwinstead.com GRANAVA ESIGN GUIDELINES Adopted: MAGUIRE PARTNERS - SOLANA LAND, L.P., a Texas limited partnership By: Printed Name: Title: THE STATE OF TEXAS § COUNTY OF § This instrument was acknowledged before me this day of 2013 by of MAGUIRE PARTNERS - SOLANA LAND, L.P., a Texas limited partnership, on behalf of said limited partnership. (SEAL) Notary Public Signature Adopted by MAGUIRE PARTNERS - SOLANA LAND, L.P., a Texas limited partnership, in accordance with Granada Declaration of Covenants Conditions and Restrictions recorded in under Document No. Official Public Records of Tarrant County, Texas (the "Declaration")_ In accordance with Section 7.02(c) of the Declaration, these Design Guidelines may be amended from time to time by the ACC (as defined in the Declaration). 2 GRANADA DESIGN GUIDELINES AUSTIN 1/699747v.4 46145-8 10/22/2013 Resolution 13-33 Exhibit A Any notice or information required to be submitted to the ACC under these Design Guidelines hereunder will be submitted the ACC at 1221 North I -35E, Suite 200, Carrollton, Texas 75006, c/o Granada ACC, Phone: 469-892-7200, Fax: 469-892-7202. Granada is a master planned community located in Tarrant County, Texas. Lots 1-84, Granada, a subdivision in Tarrant County Texas, according to the plat recorded in Official Public Records of Tarrant County, Texas (the "Property"), are subject to the terms and provisions of that certain Granada Declaration of Covenants Conditions and Restrictions recorded in the Official Public Records of Tarrant County, Texas (the "Declaration"). Capitalized terms used but not defined in these Design Guidelines shall have the meaning subscribed to such terms in the Declaration., Article 7 of the Declaration includes procedures and criteria for the construction of improvements within the Granada community. Section 7.01 of the Declaration provides that no Improvements may be erected, placed, constructed, painted, altered, modified or remodeled on any Lot and no Lot may be re -subdivided or consolidated with other Lots or Propertby anyone other than Declarant without prior written approval of the ACC. The ACC consists of two (2) members who have been appointed by Maguire Partners — Solana Land, L.P., a Texas limited partnership (the "Declarant") and one (1) member who has been appointed by the Town Manager (the "Town Manager") of the Town of Westlake, Texas (the "Town"). As provided in Article 7 of the Declaration, the Declarant has a substantial interest in ensuring that Improvements within Granada maintain and enhance Declarant's reputation as a community developer and do not impair Declarant's ability to market and sell all or any portion of the community, and, as a consequence thereof, the two (2) members of the ACC appointed by Declarant act solely in Declarant's interest and shall owe no duty to any other Owner or the Granada Residential Community, Inc. (the "Association"). The Town has a substantial interest in ensuring that the Improvements within Granada are consistent with the Town's long-term vision, and, as a consequence thereof, the one (1) member of the ACC appointed by the Town Manager acts solely in the Town's interest and shall owe no duty to any other Owner or the Association. Governmental ordinances and regulations are applicable to all Lots within Granada. It is the responsibility of each Owner to obtain all necessary permits and inspections. Compliance with these Design Guidelines is not a substitute for compliance with the applicable ordinances and regulations. Please be advised that these Design Guidelines do not list or describe each requirement which may be applicable to a Lot within Granada. Each Owner is advised to review all encumbrances affecting the use and improvement of their Lot prior to submitting plans to the ACC for approval. Furthermore, approval by the ACC should not be construed by the Owner that any Improvement complies with the terms and GRANADA DESIGN GUIDELINES AUSTIN _l /699747v.4 46145-8 10/22/2013 Exhibit A provisions of all encumbrances which may affect the Owner's Lot. Certain encumbrances may benefit parties whose interests are not addressed by the ACC. The ACC shall bear no responsibility for ensuring plans submitted to the ACC comply with Applicable Law. It is the responsibility of the Owner to secure any required governmental approvals prior to construction on such Owner's Lot. In the event of any conflict between these Design Guidelines and the Declaration, the Declaration shall control. Capitalized terms used in these Design Guidelines and not otherwise defined in this document shall have the same meaning as set forth in the Declaration. The ACC may amend these Design Guidelines. All amendments shall become effective upon recordation in the Official Public Records of Tarrant County, Texas. Amendments shall not apply retroactively so as to require modification or removal of work already approved and completed or approved and in progress. It is the responsibility of each Owner to ensure that they have the most current edition of the Design Guidelines and every amendment thereto. Requests for approval of proposed construction, landscaping, or exterior modifications must be made by submitting an application in the form attached hereto as Attachment 1. Timing The ACC will attempt to review all applications and submittals within thirty (30) days. Please allow at least thirty (30) days prior to installation or construction for the ACC to review the related applications. Please be advised that in the event that any plans and specifications are submitted to the ACC and the ACC fails to either approve or reject such plans and specifications for a period of thirty (30) days following such submission, the plans and specifications will be deemed disapproved. �c • • • • • • An applicant is responsible for ensuring that all of the applicant's representatives, including the applicant's architect, engineer, contractors, subcontractors, and their agents and employees, are aware of these Design Guidelines and all requirements imposed by the ACC as a condition of approval. Inspection Upon completion of each phase of approved work, the Owner must notify the ACC. The ACC should be notified after the stake out of the building, after completion of framing, and after completion of the approved work. The ACC may, but shall in no event be obligated to, inspect the work at any time to verify conformance with the approved submittals. Furthermore, approval by the ACC should not be construed by the Owner that any Improvement complies with the terms and provisions of any ordinances, requirements, regulations or encumbrances which may affect the Owner's Lot. 4 AUSTIN _I /699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Exhibit A The ACC may, in its sole and absolute discretion, deny a plan or elevation proposed for a particular Lot if a substantially similar plan or elevation exists on a Lot in close proximity to the Lot on which the plan or elevation is proposed. The ACC may adopt additional requirements concerning substantially similar plans or elevations constructed in proximity to each other. For Example: • Plan can be repeated event fifth Lot (example: Plan A, Plan B, Plan C, Plan D, Plan E and Plan A). Plan A Plan B Plan C Plan D Plan E Plan A Plan F Plan G Plan H Plan B Plan C Plan D Across the Street: Same plan cannot be placed on a Lot across the street or diagonal from any other plan (example above: Plan B). • • • ,t 111 • 111111111111 •�• •• r,. The ACC may, in its sole and absolute discretion, deny proposed brick, masonry or wood trim for a particular Lot if substantially similar brick, masonry or wood trim exists on a Lot in close proximity to the Lot on which the brick, masonry or wood trim is proposed. The ACC may adopt additional requirements concerning substantially similar brick, masonry or wood trim constructed in proximity to each other. For Example: • Similar brick, masonry or wood trim can be repeated even] fifth Lot (example: Brick A, Brick B, Brick C, Brick D, Brick E and Brick A). Brick A Brick B Brick C Brick D Brick E Brick A Brick F Brick G Brick B Brick H Brick C Brick D • Across the Street: Same brick or masonry cannot be placed on a Lot across the street or diagonal from any other brick or masonry (example above: Brick B). GRANADA DESIGN GUIDELINES AUSTIN _l /699747v.4 46145-8 10/22/2013 • All building materials must be approved in advance by the ACC, and only new building materials (except for used brick) shall be used for constructing any Improvements. • All projections from a dwelling or other structure, including but not limited to chimney flues, vents, gutters, downspouts, utility boxes, porches, railings and exterior stairways must, unless otherwise approved by the ACC, be coordinated with the overall design of the Improvement from which they project. • No highly reflective finishes (other than glass, which may not be mirrored) shall be used on exterior surfaces (other than surfaces of hardware fixtures), including, without limitation, the exterior surfaces of any Improvements. Masonry Requirements, Exterior Walls and Finishes • The exterior walls shall have horizontal and vertical articulation or architectural features on all elevations as approved by the ACC. • Unless otherwise approved in advance and in writing by the ACC, the exterior walls of each primary residence shall be constructed of at one -hundred percent (100%) masonry, exclusive of roofs, eaves, soffits, windows, doors, gables, garage doors and trim work. For purposes of this section brick, stone, cast stone, and stucco are considered masonry. Brick shall be limited to thirty percent (30%) of the exterior walls. Stucco shall be a minimum of 3/4 of an inch thick and limited to thirty (30%) of the exterior walls on homes which are not of Tuscan or Mediterranean style. Up to one -hundred percent (100%) stucco may be used on the exterior walls of Tuscan or Mediterranean style homes. The ACC, in its sole discretion, will determine whether or not a home is of Tuscan or Mediterranean style. Wood use shall be very minimal and only as an accent. • Unless otherwise approved by the ACC, siding is prohibited for use on exterior walls of a primary residence. • Unless otherwise approved by the ACC, exterior wall materials shall make changes at inside corners only. Unless otherwise approved by the ACC, every elevation shall have a minimum of two wall materials or textures. Single wall covering materials may be approved by the ACC if the architectural features, wall offsets, and enhanced trim around openings are utilized to limit continuous blank wall areas. • Unless otherwise approved by the ACC, walls shall not exceed thirty feet (30') in length without an offset of two feet (2') or more unless the wall is broken up by architectural elements such as ornate masonry work, changes in construction material, or openings for windows or doors that are trimmed and recessed a minimum of three inches (Y). 0 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Exhibit A ® The exterior materials must be authentic and not artificial as reasonably determined by the ACC. There should generally not be more than three exterior materials (including exterior walls, window/door surrounds, accents, etc.). The ACC will evaluate whether additional materials shall be allowed on a case by case basis. ® Colors should be appropriate to the architectural style chosen. Colors should be non-invasive and subdued rather than bold and bright. All exterior materials should comply with one color palate, approved by the ACC, including all exterior paint, brick/stone, trim, mortar, window mullions, balusters, columns, etc.). Color palates should consist of natural earth tone colors, i.e., medium to dark greens, browns, and tans. ® Unless otherwise approved by the ACC, all chimneys shall be 100% masonry to match the materials used on home. No wood or masonry siding of any kind shall be used on chimneys. ® No foundation of a residence may: be exposed more than twenty-four inches (24") above final grade along: (a) the front elevation of the residence visible from any street; or (b) each side elevation of the residence visible from any street. If the exterior of the elevation adjacent to the exposed foundation is constructed of stucco, the ACC will have the authority to require the use of stone, in a color approved in advance by the ACC, to conceal the exposed portion of the foundation. In the event of a dispute as to the front or side elevation of a residence which is visible from any street, the determination of the ACC shall be final and conclusive. ® All materials for courtyard walls and fencing must be approved in advance by the ACC. The footprint of the main level of each single family residence constructed on a Lot shall not exceed thirty -percent (30%) of the entire area of the Lot. Footprint is defined as all areas that are contained within four walls and garages (excludes open porches, patios, porte-cocheres, or other unenclosed areas). Unless otherwise approved by the ACC, the minimum living square footage for each residence, exclusive of open or screened porches, terraces, patios, decks, driveways, and garages is three thousand (3,000) square feet for single -story homes and four thousand (4,000) square feet living space for two-story homes. Minimum Horne Width Unless otherwise approved in advance and in writing by the ACC, the minimum width for each residence is seventy feet (70'). GRANADA DESIGN GUIDELINES AUSTIN 1/699747v.4 46145-8 10/22/2013 Exhibit A Aesthetic Appeal The ACC may disapprove the construction or design of a home on purely aesthetic grounds. AnYprior decisions of the ACC regarding matters of design or aesthetics will not be considered to establish a precedent for any future decision of the ACC. Siting/Setbacks Unless otherwise approved by the unanimous consent of the ACC, the following setbacks shall apply to each Lot: ® Front Lot line: 40 feet ® Rear Lot line: 40 feet ® Side Lot line: 20 feet The ACC, by unanimous consent, may: (i) approve a reduction of the required front yard setback or may require an increase in the required front yard setback by a maximum of ten (10) feet if, in the sole opinion of the ACC, the increase is needed to avoid monotony or to accommodate unique site conditions including the preservation of old growth trees; (ii) approve a reduction of the required rear yard setback by a maximum of ten feet (10') if, in the sole opinion of the ACC, the reduction is needed to avoid monotony or to accommodate unique site conditions including the preservation of old growth trees; or (iii) approve a reduction of the required side yard setback by a maximum of five feet (5') if, in the sole opinion of the ACC, the reduction is needed to avoid monotony or to accommodate unique site conditions including the preservation of old growth trees. Notwithstanding any provision to the contrary in these Design Guidelines, eves, steps, and open porches will not be considered part of the residence for the purpose of the setback requirement hereunder; however, no portion of any Improvement will be permitted to encroach upon another Lot. The ACC must approve the encroachment of any flatwork, i.e. driveway, porch, etc. over the side building setbacks. The ACC reserves the right to stipulate additional building or Improvement setbacks attributable to any Lot. The ACC further reserves the right to grant variances to the setbacks set forth herein in accordance the Declaration. Temporary/Accessory Structures Owners will generally be permitted to erect one (1) accessory structure on their Lot provided the accessory structure, such as a pool cabana, garden building, storage building, or home office is approved in advance by the ACC. In no event will the total square footage of any approved accessory structure be interpreted to reduce the minimum square footage requirements of the principal residential structure as set forth in these Design Guidelines. GRANADA DESIGN GUIDELINES AUSTIN 1/699747v.4 46145-8 10/22/2013 Exhibit A Unless otherwise approved in advance and in writing by the ACC, an accessory structure: (i) must be constructed of the same exterior materials as the main residence constructed on the Lot; (ii) must utilize roof materials that match the roof materials incorporated into the principal residential structure constructed on the Lot; (iii) have a pitched roof of the same pitch as the principal residential structure constructed on the Lot; (iv) use paint which matches the color of the trim of the principal residential structure constructed on the Lot; (v) must utilize shingles which are the same as on the principal residential structure constructed on the Lot; and (vi) may not be located nearer than five (5) feet from an interior (side) Lot line. Temporary storage structures also known as "pods" are allowed with the prior written approval of the ACC office provided that: ® Structure is located in the driveway of the Lot, and ® Structure is not placed on any Lot for more than seven (7) days. The ACC shall be entitled to determine, in its sole and absolute discretion, whether a structure or shed on any Lot complies with the foregoing requirements relating to size, height, fence enclosure and construction materials. No accessory structure will be approved unless a principal residential structure has been constructed on the Lot or the accessory structure is being constructed at the same time as the principal residential structure. The ACC may adopt additional requirements for any accessory structure on a case by case basis as a condition to approval. All structures on a Lot must reflect consistently the same architectural style and materials as the main residence constructed on the Lot. No temporary or accessory structure may be erected without the advance approval by the ACC. Prohibited Elements The following architectural elements are prohibited within Granada unless expressly approved in writing by the ACC: Roofs ® Excessively pitched roofs. ® Mansard, gambrel or chalet roofs. ® Flat roofs. ® Roofs that are too steep or too shallow for the style of the home, as determined by the ACC. ® Shed roofs except as incidental to the main roof. ® Composition shingles. GRANADA DESIGN GUIDELINES AUSTIN 1/699747v.4 46145-8 10/22/2013 Exhibit A Design Elements • Unnecessarily prominent chimneys and other roof penetrations. • Vents or skylights facing the street. • White or bubble skylights. • Mirrored glass. • Faux mullion windows Materials and Colors • Wood siding (wood siding accents may be permitted if approved by the ACC). • Cultured stone unless approved by the ACC. • Gray brick. • Block masonry Building Height Unless otherwise approved in advance by the ACC, no building or residential structure may exceed two and one-half stories or twenty-eight feet (28') in height as measured from the finished lot grade to the midpoint of the highest pitched or hipped roof above. The measurement locations will be chosen by the ACC based upon which points are most restrictive. The height limitations imposed above shall not apply to: (i) chimneys and vent stacks, cupolas, or other architectural features that are not intended for occupancy or storage; or (ii) flag poles and similar devices. Views are neither guaranteed, preserved, nor protected within Granada. Room Additions Any room additions must be approved in writing by the ACC. Additions to a residence will be considered for approval by the ACC if they meet the following: • All materials used match those of the principal residential structure, including masonry, windows, and paint color, shingles, etc. • Sunrooms will be considered. 10 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Exhibit A • Screened Porches will be considered on a case by case basis and must meet the following minimum acceptable standards: • The porch and related improvements must be compatible with the architectural elements of the principal residential structure. Paint colors and materials must match those of the principal residential structure. • Design should reflect consideration for any adverse impact of neighboring properties. • Screened porches shall be located in back yard only. The screened porch shall not encroach on any easement or building line. • Screened porch shall be attached to the principal residential structure. • Free standing screened porches are not permitted. • Supplemental landscaping may be required as part of the ACC review. • The roof of screened porch shall be solid decking shingled to match the principal residential structure. "Greenbelt/Open Space Lots" shall refer to Lots/land that has not been developed, whether it is owned by the Declarant, a Homebuilder, the Association or another Owner and is not intended for use as a single family Lot. These areas are to be considered as private property and trespassing is prohibited. Lots adjacent to Greenbelt/Open Space Lots must comply with all of the following requirements: • The boundary between the Lot and the Greenbelt/Open Space Lots must be fenced in a manner approved in advance by the ACC. • The fence must be 6 feet in height and be constructed of "pyrite brown" wrought iron or other decorative metal of a color and style specified by the ACC. • No gate will be permitted into a Greenbelt/Open Space Lot. • Backyards must be fully sodded with at least two 3" caliper hardwood trees installed by the Owner. • Sheds or outbuildings will not be permitted on any Lot adjacent to Greenbelt/Open Space Lots. • At no time are Greenbelt/Open Space Lots to be used for ingress/egress or storage. • Greenbelt/Open Space Lots should remain in their natural state. No removal or trimming of trees is permitted. Primary massing of a single family residence constructed on a Lot should be a reflection of the primary interior rooms within the single family residence. Secondary massing should be a reflection of the 11 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Exhibit A secondary interior rooms within the single family residence. The concept is to design homes with simple room lines that reflect the interior spaces that are being housed. The pitch, color and composition of all roof materials must be approved in writing by the ACC. Roof vents and other penetrations shall be as unobtrusive as possible and must match the principal color of the roof unless approved in advance by the ACC. • Accepted Roof Pitch: Roof slope for the main structure and garage shall be approved in advance by the ACC. Roofs must contain different pitches as determined by the ACC. • Roof Design: Roof design shall include offsets and dormers to break up large expanses of roof area. Accepted Roof Materials: Roof materials allowed are concrete tile clay tile, natural slate, standing seam metal roof (allowed only if made of copper, paint grip galvanized unpainted and as accent roof projections not exceeding 200 square feet) or other materials with similar materials if approved unanimously by the ACC. No more than two houses on adjacent lots have the same roof pitch unless at least one roof has multiple pitches. Materials should be appropriate to the design style chosen. For stucco style homes, a barrel file roof shall be required. Roofing materials must be submitted for approval prior to installation and labeled on all submitted elevations. Acceptable colors are natural tones. In addition, roofs of buildings may be constructed with "Energy Efficiency Roofing" with the advance written approval of the ACC. For the purpose of the Section, "Energy Efficiency Roofing" means shingles that are designed primarily to: (a) be wind and hail resistant; (b) provide heating and cooling efficiencies greater than those provided by customary composite shingles; or (c) provide solar generation capabilities. The ACC will not prohibit an Owner from installing Energy Efficient Roofing provided that the Energy Efficient Roofing shingles: (i) resemble the shingles used or otherwise authorized for use within the community; (ii) are more durable than, and are of equal or superior quality to, the shingles used or otherwise authorized for use within the community; and (iii) match the aesthetics of adjacent property. An Owner who desires to install Energy Efficient Roofing will be required to comply with the architectural review and approval procedures set forth the Restrictions. In conjunction with any such approval process, the Owner should submit information which will enable the ACC to confirm the criteria set forth in this Section. Any other type of roofing material shall be permitted only with the advance written approval of the ACC. Mechanical Equipment: All mechanical equipment and pool equipment shall be complete screened from view from adjacent properties or right-of-way. Screening may include landscaping provide the plant sizes are sufficient to provide seventy-five percent (75%) screening. Vents: Plumbing vents should be minimally visible from the street as determined by the ACC. If there must be a vent visible to the street then it should blend in color with the roof. 12 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES In -House Sprinkler Systems All single family residences constructed on a Lot must contain in-house sprinkler systems as required by the Town of Westlake. Acceptable Windows: • All windows must be wood. All window brands must be submitted to the ACC for approval prior to installation. • All windows on front elevation of residence must have exterior mullions or muntins made of wood. Unacceptable Windows: • Aluminum. • Skylights that are visible from the street Window Details: Doors: Windows may not be of reflective or darkly tinted glass. All windows, other than those within court yards, must be recessed a minimum of 3" and not "flush" to the exterior of the residence. All doors shall be recessed a minimum of 3" and not "flush" to show wall depth. Doors with muntins should have them placed on the exterior of the glass panes rather than being "trapped" inside them. Primary entry doors shall vary in design from house to house. If the same door is used on houses within the same block, trim, accents or other architectural enhancements shall be used to create a diverse appearance and maintain the appearance of a custom home neighborhood. No carports shall be placed, erected, constructed, installed or maintained on a Lot. All garages shall be approved in advance of construction by the ACC. The Improvements on each Lot must contain one or more private enclosed garages, with garage parking capable at all times of housing at least three (3) standard size automobiles. Each garage shall have a minimum width, as measured from inside walls, of 9.6' per car and a minimum depth for each car of 20'. Each three (3) car garage shall have a minimum width of sixty feet (60') for the 3 garage door front. A minimum of a 3 garage parking spaces and 2 off street parking spaces shall be provided for each home. All garage doors shall be made of sectional wood or be wood -clad. Aluminum and fiberglass doors are prohibited. Garage doors shall be recessed a minimum of 6" to create more wall depth and lessen the focus on the garage door. Garage doors shall be placed at right angles to the street where possible. If this is not possible then special approval must be given by the ACC. The ACC will take into account the 13 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Exhibit A size/shape of the Lot and surrounding landscape. Front facing doors are allowed if located further back on the Lot than the side -entry garage portion and are in a motor court setting behind gate that extends over a driveway. Garages may contain appropriately sized storage rooms, recreational workshops and tool rooms, or servants quarters or guest quarters, if approved in advance by the ACC. Except with respect to detached garages, interior walls of all garages must be finished (i.e., taped, bedded and painted, at a minimum). Each garage shall have garage doors that are wired so as to be operated by electric door openers. The orientation of the opening into a garage (i.e., side -entry or front -entry) must be approved in advance by the ACC. All garage doors shall remain closed at all times, save and except for the temporary opening of same in connection with the ingress and egress of vehicles and the loading or placement and unloading, or removal of other items customarily kept or stored therein, when a person is in the garage or engaged in yard work, or there is another activity occurring on the Lot which is reasonably facilitated by an open garage door. No garage shall be converted to another use (e,g., living space) without the substitution, on the Lot involved, of another garage meeting the requirements of this section, and the approval of the ACC, and use of parking space in a garage for work areas or storage (including boxes, toys, exercise equipment, furniture; or work benches) to the exclusion of one or more vehicles is strictly prohibited. Driveways, Sidewalks and Parking The design of all driveways must be approved in advance by the ACC. All driveways, sidewalks, and parking areas shall be surfaced with concrete, stone, or pavestone. Concrete shall be exposed aggregate, salt finish or stamped and stained. All driveways, sidewalks and parking areas shall be a minimum of one foot (Y) from any adjacent property line. The design of all parking areas should strive to minimize public view of any vehicles. Driveways must permit entry by standard mid-size vehicles without "bottoming out" in the transition area between the curb and property line as wells as the driveway area between the property line and the garage. If the driveway is raised significantly above finished grade (which will be determined by the ACC is its sole and absolute discretion), the exposed sides of the driveway must be screened with landscaping approved in advance by the ACC. IN I "1 11 1. 1 r All arbors, pergolas and patios covers shall be approved in advance of construction by the ACC. Arbors, pergolas and patio covers must meet the following: 14 AUSTIN 1/699747x.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Exhibit A ® Shall not exceed 10' in height. ® Be of cedar or a wood that is painted to match the principal residential structure constructed on the Lot (all other materials will be reviewed by the ACC on a case by case basis.) ® If roof is solid cover the shingles must match the principal residential structure constructed on the Lot. Lattice on the arbor will be considered by the ACC on a case by case basis. ® Support columns should match the architectural character of the principal residential structure constructed on the Lot. O Approved stain color is Behr Natural #501. Behr brand is not required, but color should match. All decks shall be approved in advance of construction by the ACC. Backyard deck additions must meet be of cedar or a wood that is painted or stained to match the principal residential structure constructed on the Lot (all other materials will be reviewed on a case by case basis by the ACC). Unless otherwise approved by the ACC, the maximum deck height should not exceed more than 18" above the highest surrounding grade. All mailboxes in the property shall be of a design consistent to the design attached hereto as Attachment 2 and the United States Postal Service regulations. THE OBJECTIVE OF THE REGULATION OF OUTDOOR LIGHTING IS TO PRESERVE THE NIGHTIME DARK SKY BY MINIMIZING THE AMOUNT OF EXTERIOR LIGHTING. TO UTILIZE LOW INTENSITY INDIRECT LIGHT SOURCES TO THE EXTENT REQUIRED FOR SAFETY AND SUBTLE DRAMA. TO ACHIEVE OUTDOOR LIGHTING OF PLANT MATERIALS WITH HIDDEN LIGHT SOURCES, THE TOWN HAS A "DARK SKY" PHILOSOPHY AND HAS ADDITIONAL OUTDOOR LIGHTING REGULATIONS IN ITS CODE OF ORDINANCES. All exterior lighting must be approved in advance by the ACC. Exterior lighting will be kept to a minimum and shall be subdued and indirect but consistent with good security practices. Such illumination shall be designed and installed so as to light only landscaping, driveway areas and walkways upon a Lot. Indirect sources and horizontal cut-off fixtures are recommended to reduce glare and provide general ambient light. Soffit or tree lights must be shielded or directed towards vegetation so as to eliminate glare and source visibility. Exterior lighting shall follow dark sky design guidelines. 15 GRANADA DESIGN GUIDELINES AUSTIN _1 /699747v.4 46145-8 10/22/2013 Exhibit A No exterior light whose direct source is visible from a street or neighboring property or which produces excessive glare to pedestrian or vehicular traffic will be allowed. Nuisance lighting and or glare must be avoided. Up -lighting shall be limited to lighting landscaping elements and shall be limited to 25 watt incandescent or equivalent lumens. Building walls shall not be illuminated and light from landscape lighting may not illuminate building walls higher than four feet (4') above grade. Except as specifically allowed by the Town's Unified Development Code, floodlights are prohibited. All light sources must be fully shielded from view from adjacent property or right-of-ways. Light sources of 25 watts incandescent or equivalent may be shielded with frosted or opaque glass. Use of other than white or color corrected high intensity lamps and exterior lights will not be allowed. Sodium, mercury vapor, or bare HID yard lights are not allowed. Exterior Holiday Decorations Lights or decorations may be erected on the exterior of the principal residential structure in commemoration or celebration of publicly observed holidays provided that such lights or decorations do not unreasonably disturb the peaceful enjoyment of adjacent Owners. All lights and decorations must not be permanent fixtures of the principal residential structure without prior written approval of the ACC and shall be removed within thirty (30) days after the holiday has ended. Christmas decorations or lights may not be displayed prior to November 15. No air-conditioning apparatus may be installed on the ground in front of the principal residential structure or on the roof of the principal residential structure unless screened in a manner approved by the ACC. Ground level air conditioning units shall be installed at street level only. All mechanical equipment, including air-conditioning equipment, shall be located in a side or rear yard only and shall not be visible from streets or Common Areas. No window air-conditioning apparatus or evaporative cooler may be attached to any front wall or front window of the principal residential structure or at any other location where it would be visible from any street, any other Lot or any Common Area. POOL, SPA EQUIPMENT MUST BE LOCATED BEHIND WALLS OR SCREENED FROM VIEW WITH LANDSCAPE TO CONTAIN NOISE. Freestanding barbecue grills are permitted only if they are stored and used in the rear yard space of the Lot that is not visible from the street. 16 AUSTIN _I /699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Exhibit A Detailed landscape plans for each Lot may be submitted to the ACC for consideration after construction of the principal residential structure thereon has begun, so long as such submission occurs at least ninety (90) days before completion of the residence. Upon written request, however, the ACC may waive the requirement of landscape plans for any Lot if the Homebuilder uses plans previously approved by the ACC for another Lot. There shall be no revisions made to approved plans without submission to, and approval by, the ACC of the revised plans. All introduced vegetation shall be trees, shrubs, vines, ground covers, seasonal flowers or sodded grassed which are commonly used in North Central Texas for landscaping purposes and which are approved by the ACC. An approved list of plants and turf is set forth on Attachment 3. Landscaping in accordance with the approved plans shall be installed within ten (10) days after issuance of a certificate of occupancy with respect to the principal residential structure. Extensions to the time limit may be granted by the ACC for up to an additional thirty (30) days on a case by case basis. The approved plans shall include permanent sodded grass or "ground cover" in all sodded areas. Winter rye shall be considered a temporary measure to reduce soil erosion through the winter season, and shall be completely removed and replaced with sodded grass according to the approved plans. Each Lot shall be landscaped, at a minimum, with: (i) full sodded front, side and backyards yards, (ii) the following number of hardwood shade trees in the front yard of each Lot --two (2) per Lot on all Lots other than comer Lots and four (4) per corner Lot (with two (2) in the front portion of the Lot, and two (2) in the side of the Lot adjacent to the street), and ten (10) shrubs sized five gallons or more. The hardwood shade trees required in the front yard of each Lot shall be no smaller in size than 4" caliper. Lots that have rear yards facing Dove Road or FM 1938 shall have a minimum of two (2) trees with at least a four inch (4") caliper and two (2) trees with at least a two inch (2") caliper in each rear yard. This requirement may be waived with the unanimous written consent of the ACC. After installation, landscaping (including temporary landscaping) shall be properly maintained at all times. Any Owner who wishes to plant one or more gardens upon their Lot must obtain the approval of the ACC of any such garden and must follow applicable requirements as to size of the Lot, visibility of the Lot from other Lots, streets or common areas, and such other matters as the ACC may specify in any written approval. Landscaping should consist of a combination of sodded turf areas and bed areas containing shrubs and ground cover. Side, front and back yard areas shall be 100% irrigated and 100% sodded where there are no landscaping beds. Large expanses of mulch or bed areas without substantial shrub or groundcover plantings are unacceptable unless the Lot contains a native stand of trees where sodding the entire yard would potentially harm the health of the trees. Stone or gravel mulch with harsh, unnatural or high contrast colors is prohibited. Street scene landscape shall be designed to be harmonious with adjacent Lots and yet thematic in its plant selection. During construction, existing trees shall be preserved and protected to the extent possible for the intended development, as determined in the ACC's discretion; provided, however, that the ACC may require the removal of cedar trees from a Lot regardless of the size of such cedar trees. Ground cover is defined as a planting of low plants (such as ivy) that covers the ground in place of turf. Rock or stone are not acceptable for use as a ground cover other than in flowerbed or walkway areas. The use of rock or crushed rock as a ground cover shall not be permitted. 17 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Exhibit A Landscape plans must include vegetative screening for above ground utility connections visible from the street or adjacent properties. Grass should be maintained at a height of no more than two and one-half inches. Mowing heights may need to be altered to prevent scalping in the event of an uneven grade. Grass will be trimmed away from sidewalks, the principal residential structure, planted areas and other obstacles. It is suggested that line trimmers, mechanical edger and chemicals are employed to keep a neat, tidy appearance. Trees and shrubs should be pruned to avoid blocking clear view of signs, address marker, illumination by light fixtures, the flow of air vents and air conditioner compressors as well as pedestrian and vehicular traffic. The ACC reserves the right to require additional landscaping for pools, cabanas and other hardscape elements that may be constructed after completion of the principal residential structure and associated landscaping. Hardscape elements in the landscaping must be in scale with the principal residential structure and associated structures. Sculptures and fountains are subject to approval by the ACC. Notwithstanding any requirements to the contrary, Owners shall comply with all applicable governmentally imposed water use restrictions and shall be granted appropriate relief from any specific requirement set forth in these Design Guidelines that cannot reasonably be complied with, as determined by the ACC, as a result of such water use restrictions. The ACC may, upon the Owner's completion of the installation of landscaping, conduct an on-site inspection of the property to ensure compliance with the approved plan. Shrubs or flower beds shall be located in flower beds along the foundation line of all structures, except where paving is adjacent to the structure, and must extend away from the foundation a minimum of five feet (5'). No more than seventy-five percent (75%) of the landscaped area of a front yard may be covered by grass. The landscape requirements of the Town's Roadway Landscape Zones contained within the Town's Unified Development Code are applicable to all Lots. Lawn Furniture, Decorations, and Garden Maintenance Equipment Lawn furniture, including swings/chairs/benches in good repair are allowed on front porches of the principal residential structure, but must be incorporated into a landscape theme if visible from other Lots. Swings and or benches are not allowed on driveways/front lawns etc. unless specifically approved for placement by the ACC. One (1) birdbath of a standard size is acceptable in the rear yard of the Lot without prior written approval from the ACC. 1$ GRANADA DESIGN GUIDELINES AUSTIN 1/699747v.4 46145-8 10/22/2013 Notwithstanding exterior holiday decorations, plastic lawn decorations and artificial plants are not permitted, including pink flamingos, animals, or other plastic designs/statues. Lawn mowers, edgers, wheelbarrows, etc. may not be left out in view of other Lots except when in use. Bulk/bag material (mulch, topsoil, etc.) may not be left out in view for longer than ten (10) days. The ACC must approve all irrigation systems prior to installation. Responsibility for proper site drainage rests with the Owner. There shall be no interference with the established drainage patterns except by Declarant, unless adequate provision is made for proper drainage and such provision has been certified by a professional engineer and approved in advance by the ACC. Each Owner is solely responsible for correcting any change in water flow or drainage caused by the construction of Improvements on such Owner's Lot. All fencing that faces a street shall be decorative metal. See the "Greenbelt/Open Space Lots" Section of these Design Guidelines for fencing requirements for Lots adjacent to greenbelt and/or open space. All fencing should be either masonry or decorative metal. Each post shall have a decorative "cap" on each post. Living plant materials for screening is also allowed. Retaining walls on the front of a Lot shall be constructed of the same stone used on the single family residence constructed on the Lot thereon. If the single family residence does not contain stone, the retaining wall material shall blend with the residence constructed by the Declarant or Homebuilder. The plans and specifications for each swimming pool, spa and hot tub constructed on a Lot must be approved in writing and prior to construction by the ACC. All applications submitted to the ACC for the approval of plans and specifications for swimming pools, hot tubs or spas must be accompanied by the applicable Town permits for the construction of same. Any applications submitted to the ACC, which do not include finalized construction permits from the applicable regulatory authority shall constitute an automatic rejection of the application. Above -ground, movable, or temporary swimming pools are prohibited. Each swimming pool constructed on a Lot must be entirely enclosed with a fence or similar structure which, at a minimum, satisfies Applicable Law. The location, color and style of the fence or enclosure must be approved in writing and in advance of construction by the ACC. The ACC may require that a swimming pool, spa and hot tub constructed on a Lot and associated Improvements be enclosed with a fence or similar structure. Approval of a swimming pool, spa and hot tub and/or associated Improvements by the ACC will not constitute a determination by the ACC that the swimming pool, spa and hot tub and/or associated Improvements comply with Applicable Law or that the 19 GRANADA DESIGN GUIDELINES AUSTIN _1 /699747v.4 46145-8 10/22/2013 Exhibit A swimming pool, spa and hot tub and/or associated Improvements are safe for use. The ACC may require an Owner to install additional screening as a pre -condition to the approval and construction of an): swimming12ool, spa, or hot tub. No swimming pool, spa and hot tub shall be located in the front or side yard on any Lot. Unless otherwise approved in writing by the ACC, if the foundation or other vertical surface of the swimming pool will extend more than twenty-four inches (24") above the final grade of the Lot, the exposed foundation or vertical surface extending more than twenty-four inches (24") above the final grade will be finished in a manner that matches the exterior masonry of the principal residential structure. Application of the terms "front yard", "side yard", "foundation or other vertical surface", and/or "final grade" as to a specific Lot will be determined by the ACC in its sole and absolute discretion. The ACC may adopt additional requirements for any swimming pool, spa and hot tub and/or associated Improvements on a case by case basis as a condition to approval. Swimming pools shall be in -ground, or a balanced cut and fill, and shall be designed to be compatible with the site and the principal residential structure as determined in the sole and absolute discretion of the ACC. Unless otherwise approved in writing by the ACC, associated swimming pool, spa, and hot tub improvements, such as rock waterfalls and slides, shall not be over six feet (6) in height. No pool or deck may be closer than five (5) feet from any Lot line. Unless otherwise approved in writing by the ACC, all maintenance equipment, including chemicals, plumbing fixtures, heaters, pumps, etc., associated with a swimming pool, spa or hot tub may not be visible from any adjacent street or Lot. The drains serving a swimming pool, spa and hot tub must be connected to street drainage systems. No swimming pool, spa or hot tub shall be drained onto property other than the Lot on which the swimming pool, spa and hot tub is constructed. Above ground spas and hot tubs visible from public view or from an adjacent street or Lot shall be skirted, decked, screened or landscaped in a manner which excludes pumps, plumbing, heaters, filters, etc. from view. No swimming pool, spa or hot tub will be approved unless a principal residential structure has been constructed on the Lot or the swimming pool, spa or hot tub is being constructed at the same time as the principal residential structure. Basketball goals, or backboards, or any other similar sporting equipment of either a permanent or temporary nature shall not be placed on any Lot or street or where same would be visible from an adjoining street or Lot without the prior written consent of the ACC. Permanent goals must meet the following criteria: ® the metal pole must be permanently mounted into the ground to the side of the driveway in a full upright position 25' back from the curb; • the pole, backboard and net must be maintained in good condition at all times; and ® poles may not be installed in front of the garage or facing into the street. Portable goals will not be allowed unless the following criteria are met: ® the goal must be placed to the side of the driveway and permanently installed to be flush with the ground and maintained at all times in a full upright position 25' back from the curb, 20 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Exhibit A ® the pole, backboard and net must be maintained in good condition at all times; ® poles may not be installed in front of the garage or facing the street; ® landscape barrier, such as small shrubs must screen the base of the goal; • goals may not be rolled into the street or any other public right-of-way; and ® goals may not be maintained in front of the garage or facing into the street. The ACC shall have the authority to establish additional guidelines for the placement and design of basketball goals, backboards, or any other similar sporting equipment and the same shall be kept and maintained out of view from any street, except in accordance with any such established guidelines. Playscapes and Sport Courts Sports courts, tennis courts, and playscapes or any similar recreational facilities may not be constructed on any Lot without the advance written approval of the ACC. The ACC may prohibit the installation of sports courts, tennis courts, playscapes or similar recreational facilities on any Lot. Playscapes or any similar recreational facilities must comply with all the following requirements: ® Must be located where the equipment will have minimum impact on adjacent Lots and be screened from public view. ® All playscapes or any similar recreational facilities equipment must be of earth tones colors, i.e., medium to dark greens, browns, and tans. ® Bright primary colors will not be permitted. ® Views of playscapes or any similar recreational facilities must be reduced from public streets and adjoining units whenever possible. o Playscapes or any similar recreational facilities must not be located any closer to a property line than the established building setbacks. ® Trampolines, whether portable or non-portable must be placed no closer than five feet (5) to any property line. ® Playscapes, playground equipment and trampolines are prohibited in the front yard. If approved, portable playscapes, including but not limited to, non -permanent and/or inflatable slides, moon bounces, water parks and above ground inflatable pools or kiddy pools (collectively "Portable Playscapes") must be stored in a screened area, the rear of the Lot, or inside the garage when not in use. hz no event, shall any Portable Playscapes be visible from or in the front of any Owner's Lot for any period of time exceeding twenty-four (24) consecutive hours. 21 GRANADA DESIGN GUIDELINES AUSTIN 1/699747v.4 46145-8 10/22/2013 Exhibit A The following restrictions shall apply to all construction activities at Granada. Periodic inspections by a representative of the ACC ma,, take in order to identify non -complying construction activities. If items identified as not complying with the regulations are not remedied in a timely manner, fines will be levied. Erosion Control Installation and Maintenance It is the responsibility of each Owner to install erosion control measures prior to the start of construction and to maintain them throughout the entire construction process. Silt fencing installed to all applicable standards is required to be properly installed and maintained to protect the low sides of all disturbed areas, where storm -water will flow during construction. The purpose of the silt fence is to capture the sediment from the runoff and to permit filtered, clean water to exit the site. The Owner should anticipate that built-up sediment will need to be removed from the silt fence after heavy or successive rains, and that any breach in the fencing will need to be repaired or replaced immediately_. If for any reason the silt fence is to be temporarily removed, please contact a representative of the ACC prior to the removal. Security Neither the ACC, the Association, nor the Declarant shall be responsible for the security of job sites during construction. Construction Hours Unless a written waiver is obtained from the ACC, construction may only take place during the following hours: Monday through Friday from 7:00 a.m. until 7:00 p.m., and on Saturdays and Sundays from 9:00 a.m. until 6:00 p.m. Noise, Animals, Children The use of radios, tape and CD players must be restrained so as not to be heard on an adjoining Lot or street. Contractors and subcontractors may not bring dogs to construction sites. Contractors and subcontractors may not bring children under 16 years of age to construction sites. All construction materials and equipment shall be neatly stacked, properly covered and secured. Any storage of materials or equipment shall be the Owner's responsibility and at their risk. Owners may not disturb, damage or trespass on other Lots or adjacent property. Insurance 22 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Exhibit A The ACC requires an Owner to procure adequate commercial liability insurance during construction naming the Association, the Declarant and the ACC as additional insureds, in an amount to be determined, from time to time by the ACC. Site Cleanliness During the construction period, each construction site shall be kept neat and shall be properly policed to prevent it from becoming a� n evesore. Owners shall provide a container for debris and shall clean up all trash and debris on the construction site on a daily basis. Trash and debris shall be removed from each construction site on a timely basis. Lightweight material, packaging and other items shall be covered or weighted down to prevent wind from blowing such materials off the construction site. The dumping, burg or burning of trash is not permitted anywhere in Granada. It is imperative that, when moving heavy equipment around, precautions be taken to prevent damage to pavement, curbs, and vegetation. Crawler tractors are not to be operated on paved or concrete surfaces. Mud, dirt and other construction debris that is tracked off site shall be cleaned on a daily basis. Sanitary Facilities A temporary sanitary facility (chemical toilet) shall be provided and maintained for the use of construction workers and shall be screened from view in a manner approved in advance by the ACC. Construction Parking Construction crews shall not park on, or otherwise use, other Lots. No construction vehicle will be permitted to leak oil or otherwise damage or deface any street located within the community. Schedule of Fines Periodic inspections by a representative of the ACC may take place in order to identify non -complying construction activities. Listed below is the schedule of fines which may be assessed. Schedule of Fines Premature Clearing $5000 Construction Without ACC Approval $5000 Encroachment on Adjacent Properties $5000 plus cost of repair Violation of Rules, Restriction or Guidelines $500/day Failure to Install and/or Maintain Erosion Control Measures $1000/day *Greenbelt/Open Space Lot violation $5000 Sign Violation $500 per sign/incident *In the event, the Association or Declarant is required to repair, clean up or provide necessary service to bring the improvement into compliance, the Owner will be assessed the cost of repair, clean up, or service plus an additional 50% for time and service expended. 23 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES The principal residential structure residence shall be complete and available for occupancy on or before eighteen (18) months after the commencement of construction. New residential home construction within Granada will utilize the process described in this section. No Improvements may be commenced until the Owner has received a written "Approval' from the ACC. New or Revision House -Start ACC Application - $50 per application Submittal process: Current ACC application completely filled out, plot plan attached (no plans required), and a check per application mailed or delivered to the ACC. Revisions will be charged same as a new submittal. Master Plans ACC Submittal - $500 per package Submittal process: These packages usually occur when a builder enters a community, or changes product All plans are to be submitted on ledger paper 11x16 or half size sets. Plans must include all elevations, roof pitch, brick/stone/stucco/siding percentages, and dimensional page for house width. Please include a submittal letter explaining the section(s) and specifics of the review. Mail or deliver the plan sets along with a check to the ACC. *Plans are reviewed in advance by the ACC.' Additional/New ACC Plan Review - $50 per plan Submittal process: Mail or deliver half size or 11x16 set of plans that include all elevations, roof pitch, brick/stone/stucco/siding percentages, and a dimensional page. Include a submittal letter describing the request along with a check per each plan to be reviewed to the ACC. Variance ACC Review - $50 per variance Submittal process: Variance request letters must include the legal address, street address, and a description of the variance, i.e. measurements, etc. Mail or deliver the letter and any supportive materials (plot plan) along with a check to the ACC. 24 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Exhibit A ATTACHMENTI ACC APPLICATION Deliver to: ACC c/o 1221 North I -35E, Suite 200 Carrollton, Texas 75006 Phone: (469) 892-7200 Fax: (469) 892-7202 Date: Lot: Block: Phase: Section: Plan #: Bedrooms: Baths: Address: Lot Plan Attached: (Please Circle) Yes/No 15F Floor Masonry % Chimney: (Please Circle) Yes/No Fencing Type: Stone Manufacturer and Color: Brick Manufacturer and Color: 2nd Floor Masonry % sonry Fiber Cement Roof Pitch: Roof Color: Roof Material: Paint Color: Fill in the information if different from color above Trim Color: Shutters Color: Square Footage of Door Color: Garage Color: House Width: Front Retaining Wall: (Please Circle) Yes/No Deck: Yes/No Patio: square feet Comments: Builder Name/Contact Information: By: Approval Date: 25 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Exhibit A 111 17L1f i►� i�►Y'Ij►•l Wei AUSTIN 1/699747x.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES ATTACHMENT 3 NORTH TEXAS PLANT LIST The following list should be used as a starting point for selecting plants in Granada. Requirements for specific Lots may be more or less restrictive depending on landscape indigenous to the immediate site and the location of the site within the Property. Canopy Trees at Street/ Lot: Shumard Red Oak (Quercus shumardii) Live Oak (Quercus virginiana) Chinquapin Oak (Quercus muehlenbergii) Lacebark Elm (Ulmus parvifolia) Cedar Elm (Ulmus crassifolia) Allee Elm (Ulmus parvifolia'Emer III Texas Ash (Fraxinus texensis) White Ash (Fraxinus americana) Canopy Trees at Open Spaces: Bald Cypress (Taxodium. distichum) Bur Oak (Quercus macrocarpa) Lacey Oak (Quercus laceyi) Ornamental Trees: Desert Willow (Chilopsis linearis) Thornless Mesquite ( Mexican Plum (Prunus mexicana) Redbud (Redbud spp.) Yaupon Holly (Ilex vomitoria) Possomhaw Holly (Ilex decidua) Eastern Red Cedar (juniperus virginiana) Vitex (Vitex agnus) Crape Myrtle (Lagerstroemia indica) Shrubs: Abelia spp. (Abelia) Cast Iron Plan (Aspidistra elatior) Coral Beauty Cotoneaster (Cotoneaster dammeri) Agarito (Mahonia trifoliolata) American Beautyberry (Callicarpa Americana) Apache Plume (Fallugia paradoxa) Autumn Sage (Salvia greggii) Dwarf Wax Myrtle (Myrica pussila) Flame Acanthus (Anisacanthus wrightii) Fragrant Sumac (Rhus aromatic) 27 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Exhibit A Pale Leaf Yucca (Yucca pallida) Red Yucca (Hesperaloe parviflora) Smooth Sumac (Rhus glabra) Texas Barberry (Mahonia swaseyi) Texas Sage (Leucophyllum frutescens) Turk's Cap (Malvaviscus drummondii) Grasses: Switchgrass (Panicum. virgatum) Big Bluestem (Andropogon gerardii) Bushy Bluestem (Androphgon glomeratus) Eastern Gamagrass (Tripsacum. dactyloides) Gulf Muhly (Muhlenbergia capillaris) Indiangrass (Sorghastrum. nutans) Inland Seaoats (Chasmanthium latifolium) Lindheimer Muhly (Muhlenbergia lindheimeri) Little Bluestem (Schizachyrium scoparium) Perennials: Black Eyed Susan (Rudbeckia hirta) Blackfoot Daisy (Melampodium leucanthum) Blue Mist Flower (Eupatorium greggii) Butterfly Weed (Asclepias tuberosa) Cardinal Flower (Lobelia cardinalis) Coreopsis (Coreopsis lanceolata) Fall Obedient Plant (Physostegia virginiana) Four -nerve Daisy (Hymenoxys scaposa) Fragrant Phlox (Phlox pilosa) Cedar Sage (Salvia roemeriana) Mealy Blue Sage (Salvia farinacea) Prairie Verbena (Verbena bipinnatifida) Purple Coneflower (Echinacea spp.) Rockrose (Pavonia lasiopetala) Ruellia (Ruellia spp.) Scarlet Sage (Salvia coccinea) Texas Lantana (Lantana horrida) Winecup, (Callirhoe involuncrata) Yellow Columbine (Aquilegia spp.) 28 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES After Recording Return To: Robert D. Burton Winstead, PC 401 Congress Ave., Suite 2100 Austin, Texas 78701 email: rburtonowinstead.com DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS I Declarant: MAGUIRE PARTNERS — SOLANA LAND, L.P., a Texas limited partnership This Declaration of Covenants, Conditions and Restrictions may be used only in connection with the residential community known as Granada in Tarrant County, Texas and the operation of the Granada Residential Community, Inc. AUSTIN 1/699746v.3 46145-8 10/22/2013 3-M • • t • - • �, • ,' GRANADA •0-4110.1 ARTICLE1. DEFINITIONS..............................................................................................................1 ARTICLE 2 USE RESTRICTIONS...................................................................................................5 2.01 General.........................................................................................................................5 2.02 Single -Family Residential Use.................................................................................... 6 2.03 Rentals.......................................................................................................................... 7 2.04 Subdividing..................................................................................................................8 2.05 Hazardous Activities...................................................................................................8 2.06 Insurance Rates............................................................................................................8 2.07 Mining and Drilling..................................................................................................... 8 2.08 Water Bodies................................................................................................................8 2.09 Noise.............................................................................................................................9 2.10 Animals - Household Pets..........................................................................................9 2.11 Rubbish and Debris.....................................................................................................9 2.12 Trash Containers........................................................................................................10 2.13 Maintenance...............................................................................................................10 2.14 Street Landscape Area -Owner's Obligation to Maintain Landscaping.................10 2.15 Antennas....................................................................................................................11 2.16 Location of Permitted Antennas...............................................................................11 2.17 Signs...........................................................................................................................12 2.18 Flags - Approval Requirements...............................................................................12 2.19 Flags - Installation and Display...............................................................................13 2.20 Tanks..........................................................................................................................14 2.21 Temporary Structures...............................................................................................14 2.22 Unsightly Articles; Vehicles......................................................................................14 2.23 On Street Parking......................................................................................................15 2.24 Basketball Goals; Permanent and Portable..............................................................15 2.25 No Tennis or Recreational Courts; Playscapes........................................................15 2.26 Decorations and Lighting.........................................................................................15 2.27 Clotheslines; Window Air Conditioners..................................................................15 2.28 Dumping....................................................................................................................15 2.29 Compliance with Restrictions...................................................................................16 2.30 Liability of Owners for Damage to Common Area.................................................16 2.31 No Warranty of Enforceability.................................................................................17 2.32 Restriction on Use of Common Area.......................................................................17 2.33 Declarant and Homebuilder Exemption..................................................................17 ARTICLE 3 CONSTRUCTION RESTRICTIONS.........................................................................17 i GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Resolution 13-33 3.01 Approval for Construction.......................................................................................17 3.02 Masonry Requirements.............................................................................................17 3.03 Minimum Square Footage........................................................................................17 3.04 Garages.......................................................................................................................17 3.05 Fences; Sidewalks......................................................................................................17 3.06 Building Restrictions.................................................................................................18 3.07 Alteration or Removal of Improvements.................................................................18 3.08 Drainage.....................................................................................................................18 3.09 Construction Activities.............................................................................................18 3.1.0 Roofing.......................................................................................................................18 3.11 Swimming Pools........................................................................................................19 3.12 Solar Energy Device..................................................................................................19 3.13 Rainwater Harvesting Systems................................................................................ 20 ARTICLE 4 GRANADA RESIDENTIAL COMMUNITY, INC .................................................. 21 4.01 Organization.............................................................................................................. 21. 4.02 Membership............................................................................................................... 21 4.03 Governance................................................................................................................ 22 4.04 Voting Rights............................................................................................................. 23 4.05 Powers........................................................................................................................ 23 4.06 Acceptance of Common Area................................................................................... 26 4.07 Indemnification.......................................................................................................... 27 4.08 Insurance.................................................................................................................... 27 4.09 Bulk Rate Contracts...................................................................................................27 4.10 Community Systems................................................................................................. 28 4.11 Declarant's Right to Contribute to Revenues of the Association ........................... 28 4.12 Protection of Declarant's Interests............................................................................ 28 4.13 Administration of Common Area............................................................................ 29 4.14 Private Streets............................................................................................................ 29 4.15 Notices and Disclaimers as to Security Systems.....................................................29 ARTICLE5 INSURANCE............................................................................................................. 30 5.01 Insurance.................................................................................................................... 30 5.02 Restoration................................................................................................................. 30 5.03 Mechanic's and Materialmen's Lien........................................................................ 31 ARTICLE 6 COVENANT FOR ASSESSMENTS.......................................................................... 31 6.01 Assessments...............................................................................................................31 6.02 Maintenance Fund..................................................................................................... 32 6.03 Regular Assessments................................................................................................. 32 6.04 Working Capital Assessment................................................................................... 32 6.05 Amenity Reimbursement Fee................................................................................... 33 6.06 Special Assessments.................................................................................................. 33 6.07 Individual Assessments............................................................................................ 33 AUSTIN 1/699746v.3 46145-8 10/22/2013 u GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS Exhibit 6.08 Amount of Assessment............................................................................................. 34 6.09 Late Charges.............................................................................................................. 34 6.10 Owner's Personal Obligation; Interest..................................................................... 34 6.11 Assessment Lien and Foreclosure............................................................................ 35 6.12 Exempt Property ................................................................. 36 6.13 Fines and Damages Assessment............................................................................... 37 ARTICLE 7 ARCHITECTURAL CONTROL COMMITTEE....................................................... 38 7.01 Construction of Improvements................................................................................ 38 7.02 Architectural Control Committee............................................................................. 38 ARTICLE 8 MORTGAGE PROVISIONS......................................................................................41 8.01 Notice of Action......................................................................................................... 42 8.02 Examination of Books................................................................................................ 42 8.03 Taxes, Assessments and Charges............................................................................. 42 ARTICLE 9 GENERAL PROVISIONS.......................................................................................... 42 9.01 Term........................................................................................................................... 42 9.02 Eminent Domain........................................................................................................ 43 9.03 Amendment...............................................................................................................43 9.04 Conceptual Plans....................................................................................................... 43 9.05 Party Wall Fences...................................................................................................... 44 9.06 Enforcement...............................................................................................................45 9.07 Higher Authority....................................................................................................... 45 9.08 Severability................................................................................................................ 45 9.09 Conflicts..................................................................................................................... 45 9.10 Gender........................................................................................................................45 9.11 Acceptance by Grantees............................................................................................ 45 9.12 Damage and Destruction.... ...................................................................................... 46 9.13 No Partition................................................................................................................ 46 9.14 Notices........................................................................................................................46 9.1.5 View Impairment....................................................................................................... 47 9.16 Safety and Security....................................................................................................47 ARTICLE10 EASEMENTS............................................................................................................. 47 10.01 Right of Ingress and Egress...................................................................................... 47 10.02 Reserved Easements.................................................................................................. 48 10.03 Utility Easements.......................................................................................................48 10.04 Roadway and Utility Easements.............................................................................. 48 10.05 Subdivision Entry and Fencing Easement............................................................... 49 10.06 Landscape, Monumentation and Signage Easement............................................49 10.07 Declarant as Attorney in Fact................................................................................... 49 ARTICLE 11 DEVELOPMENT RIGHTS........................................................................................50 11.01 Development by Declarant....................................................................................... 50 11.02 Special Declarant Rights........................................................................................... 50 iii GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Resolution 13-33 11.03 Addition of Land....................................................................................................... 50 11.04 Withdrawal of Land.................................................................................................. 51 11.05 Assignment of Declarant's Rights............................................................................ 51 AUSTIN _1 /699746V.3 46145-8 10/22/2013 IV GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS i This Declaration of Covenants, Conditions and Restrictions (the "Declaration") is made by MAGUIRE PARTNERS - SOLANA LAND, L.P., a Texas limited partnership (the "Declarant"), and is as follows: RECITALS: A. This Declaration is filed with respect to Lots 1 through 84, inclusive, Granada, a subdivision in Tarrant County Texas, according to the plat recorded under Document No. Official Public Records of Tarrant County, Texas (the "Property"). Declarant is the owner of the Property. B. Declarant desires to create and carry out a uniform plan for the development, improvement, and sale of the Property. C. By the filing of this Declaration, Declarant serves notice that the Property will be subjected to the terms and provisions of this Declaration. NOW, THEREFORE, it is hereby declared: (i) that the Property (or any portion thereof) will be held sold, conveyed, and occupied subject to the following covenants, conditions and restrictions which will run with such portions of the Property and will be binding upon all parties having right, title, or interest in or to such portions of the Property or any part thereof, their heirs, successors, and assigns and will inure to the benefit of each owner thereof; and (ii) that each contract or deed conveying the Property (or any portion thereof) will conclusively be held to have been executed, delivered, and accepted subject to the following covenants, conditions and restrictions, regardless of whether or not the same are set out in full or by reference in said contract or deed. This Declaration uses notes (text set apart in boxes) to illustrate concepts and assist the reader. If there is a conflict between any note and the text of the Declaration, the text will control. ARTICLE 1 DEFINITIONS Unless the context otherwise specifies or requires, the following words and phrases when used in this Declaration will have the meanings hereinafter specified: "Avplicable Law" means the statutes and public laws and ordinances in effect at the time a provision of the Restrictions is applied, and pertaining to the subject matter of the Restriction provision. Statutes and ordinances specifically referenced in the Restrictions are AUSTIN 1/699746v.3 46145-8 10/22/2013 -1- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS M "Applicable Law" on the date of the Restrictions, and are not intended to apply to the Property if they cease to be applicable by operation of law, or if they are replaced or superseded by one or more other statutes or ordinances. "Architectural Control Committee" or "ACC" means the committee created pursuant to this Declaration to review and approve or deny plans for the construction, placement, modification, alteration or remodeling of any Improvements on a Lot. "Assessment" or "Assessments" means assessments imposed by the Association under this Declaration. "Assessment Unit" has the meaning set forth in Section 6.08(b). "Association" means the Granada Residential Community, Inc., a Texas non-profit corporation, which will be created by Declarant to exercise the authority and assume the powers specified in Article 4 and elsewhere in this Declaration. "Board" means the Board of Directors of the Association. "Bulk Rate Contract" or "Bulk Rate Contracts" means one or more contracts which are entered into by the Association for the provision of utility services or other services of any kind or nature to the Lots. The services provided under Bulk Rate Contracts may include, without limitation, cable television services, telecommunications services, internet access services, "broadband" services, security services, trash pick up services, propane service, natural gas service, lawn maintenance services, wastewater services, and any other services of any kind or nature which are considered by the Board to be beneficial to all or a portion of the Property. "Bylaws" means the Bylaws of the Association as adopted and as amended from time to time by a Majority of the Board. "Certificate" means the Certificate of Formation of the Association, filed in the Office of the Secretary of State of Texas, as the same may be amended from time to time. "Common Area" means any property and facilities that the Association owns or in which it otherwise holds rights or obligations, including any property or facilities held by the Declarant for the benefit of the Association or its Members. Common Area includes any property that the Association holds under a lease, license, or any easement in favor of the Association. Some Common Area will be solely for the common use and enjoyment of the Owners, while other portions of the Common Area may be for the use and enjoyment of the Owners and members of the public. Common Area specifically includes all land designated as Common Area on a Plat of the Property. "Community Manual" means the community manual, which may be initially adopted and recorded by the Declarant as part of the initial project documentation for the benefit of the -2- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 1=aoil Wa Association and the Property. The Community Manual may include the Bylaws, Rules and other policies governing the Association. The Community Manual may be amended, from time to time, by a Majority of the Board with Declarant's written consent during the Development Period. Upon expiration or termination of the Development Period, the Community Manual may be amended by a Majority of the Board. "Community Systems" means any and all cable television, telecommunications, alarm/monitoring, internet, telephone or other lines, conduits, wires, amplifiers, towers, antennae, satellite dishes, equipment, materials and installations and fixtures (including those based on, containing and serving future technological advances not now known), if installed by Declarant pursuant to any grant of easement or authority by Declarant within the Property. "Declarant" means MAGUIRE PARTNERS - SOLANA LAND, L.P., a Texas limited partnership, its successors or assigns; provided that any assignment(s) of the rights of MAGUIRE PARTNERS - SOLANA LAND, L.P., a Texas limited partnership, as Declarant, must be expressly set forth in writing and Recorded. Declarant enjoys special rights and privileges to help protect its investment in the Property which are described in this Declaration. Many of these rights do not terminate until either Declarant: (i) has conveyed all Lots which may be created out of the Property; or (ii) voluntarily terminates these rights by a Recorded written instrument. "Design Guidelines" means the standards for design, construction, landscaping, and exterior items adopted pursuant to Section 7.02(c), as the same may be amended from time to time. The Design Guidelines may consist of multiple written design guidelines applying to specific portions of the Property. Declarant may adopt the initial Design Guidelines. Notwithstanding anything in this Declaration to the contrary, Declarant will have no obligation to establish Design Guidelines. "Development Period" means the period of time beginning on the date when this Declaration has been Recorded, and ending at such time as Declarant no longer owns any portion of the Property, unless earlier terminated by Declarant. Declarant may terminate the Development Period by an instrument executed by Declarant and Recorded. The Development Period is the period in which Declarant reserves the right to facilitate the development, construction, and marketing of the Property, and the right to direct the size, shape and composition of the Property. "Homebuilder" means an Owner (other than the Declarant) who acquires a Lot for the construction of a single family residence for resale to a third party. "Improvement" means every structure and all appurtenances of every type and kind, whether temporary or permanent in nature, including, but not limited to, buildings, outbuildings, storage sheds, patios, tennis courts, sport courts, recreational facilities, swimming -3- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 pools, putting greens, garages, driveways, parking areas and/or facilities, storage buildings, sidewalks, fences, gates, screening walls, retaining walls, stairs, patios, decks, walkways, landscaping, mailboxes, poles, signs, antennae, exterior air conditioning equipment or fixtures, exterior lighting fixtures, water softener fixtures or equipment, and poles, pumps, wells, tanks, reservoirs, pipes, lines, meters, antennas, towers and other facilities used in connection with water, sewer, gas, electric, telephone, regular or cable television, or other utilities. "Lot" means any portion of the Property designated by Declarant or as shown as a subdivided Lot on a Plat other than Common Area. "Ma'ori " means more than half. "Manager" has the meaning set forth in Section 4.0500. "Members" means every person or entity that holds membership privileges in the Association. "Mortgage" or "Mortgages" means any mortgage(s) or deed(s) of trust securing indebtedness and covering any Lot. "Mortga ee" or "Mortgagees" means the holder(s) of any Mortgage(s). "Owner" means the person(s), entity or entities, including Declarant, holding all or a portion of the fee simple interest in any Lot, but does not include the Mortgagee under a Mortgage prior to its acquisition of fee simple interest in such Lot pursuant to foreclosure of the lien of its Mortgage. "Plat" means a Recorded subdivision plat of any portion of the Property and any amendments thereto. "Private Streets" means Lot _, Block within the Subdivision and consists of private roadways, known as The Private Streets shall be used for vehicular and pedestrian ingress and egress to and from the Lots and are designated hereby as Common Area. "Pro er " means Lots 1 through 84, inclusive, Granada, a subdivision in Tarrant County Texas, according to the plat Recorded under Document No. subject to such additions thereto and deletions therefrom as may be made pursuant to Section 11.03 and Section 11.04 of this Declaration. "Record, Recording, Recordation and Recorded" means recorded or to be recorded in the Official Public Records of Tarrant County, Texas. "Resident" means an occupant of a Lot, regardless of whether the person owns the Lot. AUSTIN 1/699746v.3 46145-8 10/22/2013 -4- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS HM Exhibit B "Restrictions" means the restrictions, covenants, and conditions contained in this Declaration, the Design Guidelines, Bylaws, Community Manual, Rules or policies promulgated by the Board and amended from time to time. See Table 1 for a summary of the Restrictions. "Rules" means any instrument, however denominated, which is adopted by the Board for the regulation and management of the Property, including any amendments to those instruments. "Solar Energy Device" means a system or series of mechanisms designed primarily to provide heating or cooling or to produce electrical or mechanical power by collecting and transferring solar-generated energy. The term includes a mechanical or chemical device that has the ability to store solar-generated energy for use in heating or cooling or in the production of power. "Town" means the Town of Westlake, Texas. "Town Manager" means the Town Manager of the Town of Westlake, Texas or his/her designee. ARTICLE 2 USE RESTRICTIONS All of the Property shall be owned, held, encumbered, leased, used, occupied, and enjoyed subject to the following limitations and restrictions: 2.01 General. -5- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Resolution '13-33 TABLE 1: RESTRICTIONS Declaration (Recorded) This document and any amendments thereto. Certificate of Formation (Recorded) Establishes the Association as a Texas nonprofit corporation. Bylaws (Recorded) Governs the Association's internal affairs, such as elections, meetings, etc. Community Manual (Recorded) Establishes rules and policies governing the Association. Design Guidelines (if adopted., Governs the design and architectural standards for the Recorded) construction of Improvements and modifications thereto. Rules (if adopted, Recorded) Regulates the use of property; activities, and conduct within the Pro er Board Resolutions (adopted by the Board Establishes rules, policies, and procedures for the Property, of the Association) Owners an d the Association. (a) Conditions and Restrictions. All Lots within the Property will be owned, held, encumbered, leased, used, occupied and enjoyed subject to the Restrictions. NOTICE The Restrictions are subject to change from time to time. By owning or occupying a Lot, you agree to remain in compliance with the Restrictions, as they may change from time to time. (b) Ordinances. Ordinances and requirements imposed by local governmental authorities are applicable to all Lots within the Property. Compliance with the Restrictions is not a substitute for compliance with such ordinances and regulations. Please be advised that the Restrictions do not purport to list or describe each ordinance or regulation which may be applicable to a Lot located within the Property. Each Owner is advised to review all ordinances, requirements, regulations and encumbrances affecting the use and improvement of their Lot prior to submitting plans to the ACC for approval. Furthermore, approval by the ACC should not be construed by the Owner that any Improvement complies with the terms and provisions of any ordinances, requirements, regulations or encumbrances which may affect the Owner's Lot. Certain encumbrances may benefit parties whose interests are not addressed by the ACC. 2.02 Single -Family Residential Use. The Lots may be used solely for private single- family residential purposes and there will not be constructed or maintained thereon more than one detached single family residence. No professional, business, or commercial activity to which the general public is invited may be conducted on any Lot, except an Owner or Resident may conduct business activities within a residence so long as: (i) the existence or operation of the business activity is not apparent or detectable by sight, sound, or smell from outside the residence; (ii) the business activity conforms to all zoning requirements for the Property; (iii) the business activity does not involve door-to-door solicitation of residents within the Property; (iv) the business does not, in the Board's judgment, generate a level of vehicular or pedestrian traffic or a number of vehicles parked within the Property which is noticeably greater than that which is typical of residences in which no business activity is being conducted; and (v) the business activity is consistent with the residential character of the Property and does not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of other Residents of the Property as may be determined in the sole discretion of the Board. The terms "business" and "trade", as used in this provision, will be construed to have their ordinary, generally accepted meanings and will 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: (x) such activity is engaged in full or part-time; (y) such activity is intended to or does generate a profit; or (z) a license is required. Leasing of a residence is not considered a business or trade within the meaning of this subsection. This subsection will apply to any activity conducted by the Declarant or a Homebuilder. -6- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Notwithstanding any provision in this Declaration to the contrary, until the earlier to occur of expiration or termination of the Development Period, or forty_(40) years from the date this Declaration is Recorded: (i) Declarant and/or its licensees may construct and maintain upon portions of the Common Area and any Lot owned by the Declarant such facilities and may conduct such activities which, in Declarants sole opinion, may be reasonably required, convenient, or incidental to the construction or sale of single family residences constructed upon the Lots, including, but not limited to, business offices, signs, model homes, and sales offices. Declarant and/or its licensees have an easement over and across the Common Area for access and use of such facilities at no charge; and (ii) Declarant and/or its licensees will have an access easement over and across the Common Area for the purpose of making, constructing and installing Improvements upon the Common Area. 2.03 Rentals. Nothing in this Declaration will prevent the rental of any Lot and the Improvements thereon by the Owner thereof for residential purposes; provided that: (i) all rentals must be for terms of at least six (6) months; and (ii) no portion of a Lot (other than the entire Lot) may be rented. All leases shall be in writing, and the Board will have the authority to approve all leases in advance. Each lease must provide, or be deemed to provide, that the Board shall have the right to terminate the lease upon default by the tenant in observing any provisions of the Restrictions. The Board may deny permission to lease any Lot on any reasonable grounds the Board may find. The Board shall have the right to require the Owner to deposit in escrow with the Association (in addition to any other deposits which may be required by the Owner so long as such additional deposit is not prohibited by law) an amount not to exceed one month's rental fee paid. Said deposit may be used by the Association to repair any damage to the Property resulting from acts or omission by the tenants (as determined in the sole discretion of. the Board). Regardless of whether or not expressed in the applicable lease, all Owners shall be jointly and severally liable with the tenants of such Lot to the Association for any amount which is required by the Association to effect such repairs or to pay any claim for any injury or damage to property caused by the negligence of the tenant of such Lot or for the acts or omissions of the tenant(s) of such Lot which constitute a violation of, or non-compliance with, the provisions of the Documents. All leases shall comply with and be subject to the provisions of the Restrictions and the provisions of same shall be deemed expressly incorporated into any lease of a Lot. This Section 2.03 shall also apply to assignments and renewals of leases. No lease approved by the Board shall be amended or modified without the Board's approval. In making its determination as to whether to approve a lease of a Lot, the Board shall not discriminate on the grounds of race, gender, religion, national origin, familial status or physical or mental handicap; provided, however, nothing herein shall be construed to require the Association to furnish an alternate tenant to the Owner in the event the Board disapproves a lease or tenant. Upon entering into an agreement for the lease of a Lot, an AUSTIN 1/699746v.3 46145-8 10/22/2013 -7- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS am Owner, other than Declarant, shall provide written notice to the Board, or its designee, of the lease agreement and furnish the names of the prospective tenant. The Board may require that the Owner deliver to the tenant, a copy of the Restrictions and obtain a written instrument executed by the tenant acknowledging receipt of the Restrictions which receipt will be provided to the Board. The Board shall have the right to charge an Owner a reasonable fee (not to exceed $500.00) as determined by the Board for the processing of leases of Lots. 2.04 Subdividing. No Lot shall be further divided or subdivided, nor may any easements or other interests therein less than the whole be conveyed by the Owner thereof without the prior written approval of the ACC; provided, however, that when Declarant is the Owner thereof, Declarant may further divide and subdivide any Lot and convey any easements or other interests less than the whole, all without the approval of the ACC. 2.05 Hazardous Activities. No activities may be conducted on or within the Property and no Improvements constructed on any portion of the Property which, in the opinion of the Board, are or might be unsafe or hazardous to any person or property. Without limiting the generality of the foregoing, no firearms or fireworks may be discharged upon any portion of the Property unless discharged in conjunction with an event approved in advance by the Board and no open fires may be lighted or permitted except within safe and well-designed fireplaces or in contained barbecue units while attended and in use for cooking purposes. No portion of the Property may be used for the takeoff, storage, or landing of aircraft (including, without limitation, helicopters) except for medical emergencies. 2.06 Insurance Rates. Nothing shall be done or kept on the Property which would increase the rate of casualty or liability insurance or cause the cancellation of any such insurance on the Common Area, or the Improvements located thereon, without the prior written approval of the Board. 2.07 Mining and Drilling. No portion of the Property may be used for the purpose of mining, quarrying, drilling, boring, or exploring for or removing oil, gas, or other hydrocarbons, minerals of any kind, rocks, stones, sand, gravel, aggregate, or earth. This provision will not be construed to prevent the excavation of rocks, stones, sand, gravel, aggregate, or earth or the storage of such material for use as fill provided that such activities are conducted in conjunction with the construction of Improvements and/or the development of the Property by the Declarant. Furthermore, this provision will not be interpreted to prevent the drilling of water wells approved in advance by the ACC which are required to provide water to all or any portion of the Property. All water wells must also be approved in advance by the ACC and any applicable regulatory authority. 2.08 Water Bodies. By acceptance of a deed to Lot, each Owner acknowledges that the water levels of all water bodies, if any, may vary. There is no guarantee by the Declarant or the Association that water levels will be constant or aesthetically pleasing at any particular time. In fact, water levels may be non-existent from time to time. AUSTIN 1/699746v.3 46145-8 10/22/2013 -8- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS 14 -PTI 2.09 Noise. No exterior speakers, horns, whistles, bells, or other sound devices (other than security devices used exclusively for security purposes) shall be located, used, or placed on any of the Property. No noise or other nuisance shall be permitted to exist or operate upon any portion of the Property so as to be offensive or detrimental to any other portion of the Property or to its Residents. Without limiting the generality of the foregoing, if any noise or nuisance emanates from any Improvement on any Lot, the Association may (but shall not be obligated to) enter any such Improvement and take such reasonable actions necessary to terminate such noise (including silencing any burglar or break-in alarm). 2.10 Animals - Household Pets. No animals, including pigs, hogs, swine, poultry, fowl, wild animals, horses, cattle, sheep, goats, or any other type of animal not considered to be a domestic household pet within the ordinary meaning and interpretation of such words may be kept, maintained, or cared for on or within the Property (as used in this paragraph, the term "domestic household pet" shall not mean or include non-traditional pets such pot-bellied pigs, miniature horses, goats, exotic snakes or lizards, ferrets, monkeys, chickens or other exotic animals). The Board may conclusively determine, in its sole discretion, whether a. particular pet is a domestic household pet within the ordinary meaning and interpretation of such words. No Owner may keep more than four (4) cats and dogs, in the aggregate, of which no more than two (2) may be dogs, unless otherwise approved by the Board. No animal may be allowed to make an unreasonable amount of noise, or to become a nuisance, and no domestic pets will be allowed on the Property other than within the Owner's residence, or the fenced yard space associated therewith, unless confined to a leash. The Association may restrict pets to certain areas on the Property. No animal may be stabled, maintained, kept, cared for, or boarded for hire or remuneration on the Property, and no kennels or breeding operation will be allowed. No animal may be allowed to run at large, and all animals must be kept within enclosed areas which must be clean, sanitary, and reasonably free of refuse, insects, and waste at all times. No pet may be left unattended in yards, porches or other outside area. All pet waste will be removed and appropriately disposed of by the owner of the pet. All pets must be registered, licensed and inoculated as required by Applicable Law. If, in the opinion of the Board, any pet becomes a source of unreasonable annoyance to others, or the owner of the pet fails or refuses to comply with these restrictions, the Owner, upon written notice, may be required to remove the pet from the Property. 2.11 Rubbish and Debris. As determined by the Board, no rubbish or debris of any kind may be placed or permitted to accumulate on or within the Property, and no odors will be permitted to arise therefrom so as to render all or any portion of the Property unsanitary, unsightly, offensive, or detrimental to any other property or Residents. Refuse, garbage, and trash must be kept at all times in covered containers, and such containers must be kept within enclosed structures or appropriately screened from view. Each Owner will contract with an independent disposal service to collect all garbage or other wastes, if such service is not provided by a governmental entity or the Association. AUSTIN 1/699746v.3 46145-8 10/22/2013 -9- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS UM f UMM-1 2.12 Trash Containers. Trash containers and recycling bins must be stored in one of the following locations: (a) inside the garage of the single-family residence constructed on the Lot, or (b) behind the single-family residence or fence constructed on the Lot in such a manner that the trash container and recycling bin is not visible from any street, alley, or adjacent Lot. The Board shall have the right to specify additional locations on each Owner's Lot in which trash containers or recycling bins must be stored. 2.13 Maintenance. The Owners of each Lot shall jointly and severally have the duty and responsibility, at their sole cost and expense, to keep their Lot and all Improvements thereon in good condition and repair and in a well-maintained, safe, clean and attractive condition at all times. The Board, in its sole discretion, shall determine whether a violation of the maintenance obligations set forth in this Section 2.13 has occurred. Such maintenance includes, but is not limited to the following, which shall be performed in a timely manner, as determined by the Board, in its sole discretion: (i) Prompt removal of all litter, trash, refuse, and wastes. (ii) Lawn mowing. (iii) Tree and shrub pruning. (iv) Watering. (v) Keeping exterior lighting and mechanical facilities in working order. (vi) Keeping lawn and garden areas alive, free of weeds, and attractive. (vii) Keeping planting beds free of turf grass. (viii) Keeping sidewalks and driveways in good repair. (ix) Complying with Applicable Law. (x) Repainting of Improvements. (xi) Repair of exterior damage, and wear and tear to Improvements. 2.14 Street Landscape Area -Owner's Obligation to Maintain Landscaping. Each Owner will be responsible, at such Owner's sole cost and expense, for maintaining mowing, replacing, pruning, and irrigating the landscaping between the boundary of such Owner's Lot AUSTIN 1/699746v.3 46145-8 10/22/2013 -10- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AML4111� and the curb of any adjacent right-of-way, street or alley (the "ST Landscape Area") unless the responsibility for maintaining the ST Landscape Area is performed by the Association. 2.15 Antennas. Except as expressly provided below, no exterior radio or television antennae or aerial or satellite dish or disc, shall be erected, maintained or placed on a Lot without the prior written approval of the ACC; provided, however, that: (i) an antenna designed to receive direct broadcast services, including direct -to -home satellite services, that is one meter or less in diameter; or (ii) an antenna designed to receive video programming services via multipoint distribution services, including multi -channel multipoint distribution services, instructional television fixed services, and local multipoint distribution services, that is one meter or less in diameter or diagonal measurement; or (iii) an antenna that is designed to receive television or radio broadcast signals (collectively, (i) through (iii) are referred to herein as the "Permitted Antennas") will be permitted subject to reasonable requirements as to location and screening as may be set forth in rules adopted by the ACC, consistent with Applicable Law, in order to minimize obtrusiveness as viewed from streets and adjacent property. 2.16 Location of Permitted Antennas. A Permitted Antenna may be installed solely on the Owner's Lot and shall not encroach upon any street, Common Area, or any other portion of the Property. A Permitted Antenna shall be installed in a location on the Lot from which an acceptable quality signal can be obtained and where least visible from the street and the Property, other than the Lot. In order of preference, the locations of a Permitted Antenna which will be considered least visible by the ACC are as follows: (i) Attached to the back of the principal single-family residence constructed on the Lot, with no part of the Permitted Antenna any higher than the lowest point of the roofline and screened from view of adjacent Lots and the street; then (ii) Attached to the side of the principal single-family residence constructed on the Lot, with no part of the Permitted Antenna any higher than the lowest point of the roofline and screened from view of adjacent Lots and the street. The ACC may, from time to time, modify, amend, or supplement the rules regarding installation and placement of Permitted Antennas. Satellite dishes one meter or less in diameter, e.g., DirecTV or Dish satellite dishes, are permitted, HOWEVER, you are required to comply with the rules regarding installation and placement. These Rules may be modified by the ACC from time to time. Please contact the ACC for the current rules regarding installation and AUSTIN 1/699746v.3 46145-8 10/22/2013 -11- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS placement. 2.17 Suns. Unless otherwise prohibited by Applicable Law, no sign of any kind may be displayed to the public view on any Lot without the prior written approval of the ACC, exceptfor: (i) signs which are permitted pursuant to the Design Guidelines or the Rules; (ii) signs which are part of Declarant's overall marketing, sale, or construction plans or activities for the Property; (iii) one (1) temporary "For Sale" or "For Lease" sign placed on the Lot. The sign will be limited to a maximum face area of five (5) square feet on each visible side and, if free standing, is mounted on a single or frame post. The overall height of the sign from finished grade at the spot where the sign is located may not exceed four (4) feet. The sign must be removed within two (2) business days following the sale or lease of the Lot; (iv) political signs may be erected provided the sign: (a) is erected no earlier than the 90t1 day before the date of the election to which the sign relates; (b) is removed no later than the 1011 day after the date of the election to which the sign relates; and (c) is ground -mounted. Only one sign may be erected for each candidate or ballot item. In addition, signs which include any of the components or characteristics described in Section 202.009(c) of the Texas Property Code are prohibited; (v) permits as may be required by legal proceedings or a governmental entity; (vi) a religious item on the entry door or door frame of a residence (which may not extend beyond the outer edge of the door frame), provided that the size of the item(s), individually or in combination with other religious items on the entry door or door frame of the residence, does not exceed twenty-five (25) square inches; and (vii) a "no soliciting" and "security warning" sign near or on the front door to their residence, provided, that the sign may not exceed twenty-five (25) square inches. 2.18 Flags - Approval Requirements. An Owner is permitted to display the flag of the United States of America, the flag of the State of Texas, or an official or replica flag of any branch of the United States Military ("Permitted Flag") and permitted to install a flagpole no more than five feet (5') in length affixed to the front of a residence near the principal entry or affixed to the rear of a residence ("Permitted Flagpole"). Only two (2) permitted Flagpoles are allowed per residence. A Permitted Flag or Permitted Flagpole need not be approved in advance by the ACC. Approval by the ACC is required prior to installing vertical freestanding flagpoles installed in the front or back yard area of any Lot ("Freestanding Flagpole"). To obtain ACC approval of any Freestanding Flagpole, the Owner shall provide the ACC with the -12- AUSTIN 1/699746x.3 46145-8 10/22/2013 GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS following information: (a) the location of the Freestanding Flagpole to be installed on the Lot; (b) the type of Freestanding Flagpole to be installed; (c) the dimensions of the Freestanding Flagpole; and (d) the proposed materials of the Freestanding Flagpole (the "Flagpole Application"). A Flagpole Application may only be submitted by an Owner. The Flagpole Application shall be submitted in accordance with the provisions of Article 7 of this Declaration. 2.19 Flags - Installation and Display. Unless otherwise approved in advance and in writing by the ACC, Permitted Flags, Permitted Flagpoles and Freestanding Flagpoles, installed in accordance with the Flagpole Application, must comply with the following: (i) No more than one (1) Freestanding Flagpole OR no more than two (2) Permitted Flagpoles are permitted per Lot, on which only Permitted Flags may be displayed; (ii) Any Permitted Flagpole must be no longer than five feet (5) in length and any Freestanding Flagpole must be no more than twenty feet (20') in height (iii) Any Permitted Flag displayed on any flagpole may not be more than three feet in height by five feet in width (3'x5'); (iv) With the exception of flags displayed on Common Area or any Lot which is being used for marketing purposes by a Homebuilder, the flag of the United States of America must be displayed in accordance with 4 U.S.C. Sections 5-10 and the flag of the State of Texas must be displayed in accordance with Chapter 3100 of the Texas Government Code; (v) The display of a Permitted Flag, or the location and construction of a Permitted Flagpole or Freestanding Flagpole must comply with all Applicable Law; (vi) Each Permitted Flagpole and Freestanding Flagpole must be constructed of permanent, long-lasting materials, with a finish appropriate to the materials used in the construction thereof and harmonious with the residence; (vii) Permitted Flag, Permitted Flagpole or Freestanding Flagpole must be maintained in good condition and any deteriorated Permitted Flag or deteriorated or structurally unsafe Permitted Flagpole or Freestanding Flagpole must be repaired, replaced or removed; (viii) A Permitted Flag may be illuminated by no more than one (1) halogen landscaping light of low beam intensity which shall not be aimed towards or directly affect any neighboring Lot; and AUSTIN _1 /699746v.3 46145-8 10/22/2013 -13- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS :..:.... .: ixqMfl (ix) Any external halyard of a Permitted Flagpole or Freestanding Flagpole must be secured so as to reduce or eliminate noise from flapping against the metal of the Permitted Flagpole or Freestanding Flagpole. The requirements of this Section 2.19 shall not apply to any flag or flagpole erected by the Declarant. 2.20 Tanks. No tanks, including tanks for storage of fuel, water, oil, or LPG are permitted on the Property. Notwithstanding the foregoing, swimming pool filter tanks are permitted. No elevated tanks of any kind may be erected, placed or permitted on any Lot without the advance written approval of the ACC. All permitted tanks must be screened from view in accordance with a screening plan approved in advance by the ACC. This provision will not apply to a tank used to operate a standard residential gas grill. 2.21 Temporary Structures. No tent, shack, or other temporary building, Improvement, or structure shall be placed upon the Property without the prior written approval of the ACC; provided, however, that temporary structures necessary for storage of tools and equipment, and for office space for Homebuilders, architects, and foremen during actual construction may be maintained with the prior approval of Declarant, approval to include the nature, size, duration, and location of such structure. 2.22 Unsightly Articles; Vehicles. No article deemed to be unsightly by the Board will be permitted to remain on any Lot so as to be visible from adjoining property or from public or private thoroughfares. Without limiting the generality of the foregoing, trailers, graders, trucks other than pickups, boats, tractors, campers, wagons, buses, motorcycles, motor scooters, all -terrain vehicles and garden and lawn maintenance equipment must be kept at all times except when in actual use, in enclosed structures or screened from view and no repair or maintenance work may be done on any of the foregoing, or on any automobile (other than minor emergency repairs), except in enclosed garages or other structures. Service areas, storage areas, compost piles and facilities for hanging, drying or airing clothing or household fabrics must be appropriately screened from view, and no lumber, grass, plant waste, shrub or tree clippings, metals, bulk materials, scrap, refuse or trash must be kept, stored, or allowed to accumulate on any portion of the Property except within enclosed structures or appropriately screened from view. No: (i) racing vehicles; or (ii) other vehicles (including, without limitation, motorcycles or motor scooters) which are inoperable or do not have a current license tag will be permitted to remain visible on any Lot or to be parked on any roadway within the Property. Motorcycles shall be operated in a quiet manner. Parking of commercial vehicles or equipment, recreational vehicles, boats and other watercraft, trailers, stored vehicles or inoperable vehicles in places other than: (a) in enclosed garages; and (b) behind a fence so as to not be visible from any other portion of the Property is prohibited; provided, construction, service and delivery vehicles may be exempt from this AUSTIN _1 /699746v.3 46145-8 10/22/2013 -14- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS provision for such period of time as is reasonably necessary to provide service or to make a delivery to a residence. Mobile homes are prohibited. Notwithstanding the foregoing, sales trailers or other temporary structures installed by the Declarant or expressly approved by the ACC shall be permitted. 2.23 On Street Parkinsz. Unless otherwise approved by the Declarant or the Board, no vehicle may be parked on any road or street within the Property unless in the event of an emergency. "Emergency" for purposes of the foregoing sentence shall mean an event which jeopardizes life or property. "Parked" as used herein shall be defined as a vehicle left unattended by a licensed operator for more than thirty (30) consecutive minutes. 2.24 Basketball Goals; Permanent and Portable. The basketball goal requirements are set forth in the Design Guidelines. Portable basketball goals are permitted but must be stored in the rear of the Lot or inside garage from sundown to sunrise. Basketball goals must be properly maintained and painted, with the net in good repair. All basketball goals, whether permanent or portable, must be approved by the ACC prior to being placed on any Lot. 2.25 No Tennis or Recreational Courts; Plates. No tennis, recreational or sport courts shall be constructed on any Lot unless expressly approved by the ACC. The specific requirements of tennis, recreational and/or sport courts are set forth in the Design Guidelines. 2.26 Decorations and Lighting. Unless otherwise permitted by Section 2.16(vi), no decorative appurtenances such as sculptures, birdbaths and birdhouses, fountains, or other decorative embellishments shall be placed on the residence or on the front yard or on any other portion of a Lot which is visible from any street, unless such specific items have been approved in writing by the ACC. Additional specifications related to decorations and lighting are set forth in the Design Guidelines. 2.27 Clotheslines; Window Air Conditioners. No clotheslines and no outdoor clothes drying or hanging shall be permitted within the Property, nor shall anything be hung, painted or displayed on the outside of the windows (or inside, if visible from the outside) or placed on the outside walls or outside surfaces of doors of any of the residence, and no awnings, canopies or shutters (except for those heretofore or hereinafter installed by Declarant or a Homebuilder) shall be affixed or placed upon the exterior walls or roofs of residences, or any part thereof, nor relocated or extended, without the prior written consent of the ACC. Window air conditioners are prohibited. 2.28 Dumping.. No portion of the Property shall be used or maintained as a dumping ground for rubbish, trash, new or used lumber or wood, metal scrap, garbage or other waste, except that such material may be kept in areas of the Property designated for this purpose by Declarant (in connection with its construction) or by the Board, provided that these materials AUSTIN 1/699746v.3 46145-8 10/22/2013 -15- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS E are kept in sanitary containers in a clean and sanitary condition. Owners shall place these containers for collection only in the designated areas and only on the day these refuse materials are to be collected. Empty containers shall be removed promptly after collection. 2.29 Compliance with Restrictions. Each Owner, his or her family, Residents of a Lot, tenants, and the guests, invitees, and licensees of the preceding shall comply strictly with the provisions of the Restrictions as the same may be amended from time to time. Failure to comply with any of the Restrictions shall constitute a violation of the Restrictions and may result in a fine against the Owner in accordance with Section 6.13 of this Declaration, and shall give rise to a cause of action to recover sums due for damages or injunctive relief, or both, maintainable by the Declarant, the Board on behalf of the Association, the ACC, or by an aggrieved Owner. Without limiting any rights or powers of the Association, the Board may (but shall not be obligated to) remedy or attempt to remedy any violation of any of the provisions of Restrictions, and the Owner whose violation has been so remedied shall be personally liable to the Association for all costs and expenses of effecting (or attempting to effect) such remedy. If such Owner fails to pay such costs and expenses upon demand by the Association, such costs and expenses (plus interest from the date of demand until paid at the maximum lawful rate, or if there is no such maximum lawful rate, at the rate of one and one- half percent (1-1/2%) per month) shall be assessed against and chargeable to the Owner's Lot(s). Any such amounts assessed and chargeable against a Lot shall be secured by the liens reserved in this Declaration for Assessments and may be collected by any means provided in this Declaration for the collection of Assessments, including, but not limited to, foreclosure of such liens against the Owner's Lot(s). Each such Owner shall indemnify and hold harmless the Association and its officers, directors, employees and agents from any cost, loss, damage, expense, liability, claim or cause of action incurred or that may arise by reason of the Association's acts or activities under this Section 2.29 (including any cost, loss, damage, expense, liability, claim or cause of action arising out of the Association's negligence in connection therewith), except for such cost, loss, damage, expense, liability, claim or cause of action arising by reason of the Association's gross negligence or willful misconduct. "Gross negligence" as used herein does not include simple negligence, contributory negligence or similar negligence short of actual gross negligence. 2.30 Liability of Owners for Damage to Common Area. No Owner shall in any way alter, modify, add to or otherwise perform any work upon the Common Area without the prior written approval of the Board. Each Owner shall be liable to the Association for any and all damages to: (i) the Common Area and any Improvements constructed thereon; or (ii) any Improvements constructed on any Lot, the maintenance of which has been assumed by the Association, which damages were caused by the neglect, misuse or negligence of such Owner or Owner's family, or by Resident of such Owner's Lot, or any guest or invitee of such Owner or Resident. The full cost of all repairs of such damage shall be an Individual Assessment against such Owner's Lot, secured by a lien against such Owner's Lot and collectable in the same manner as Assessments. AUSTIN 1/699746v.3 46145-8 10/22/2013 -16- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS MEM W.W.W. 2.31 No Warranty of Enforceability. Declarant makes no warranty or representation as to the present or future validity or enforceability of the Restrictions. Any Owner acquiring a Lot in reliance on one or more of the Restrictions shall assume all risks of the validity and enforceability thereof and, by acquiring the Lot, agrees to hold Declarant harmless therefrom. 2.32 Restriction on Use of Common Area. The Board may prohibit or restrict the use of the Common Area from time to time, on a non-discriminatory basis, if and to the extent required for safety or other valid reasons. 2.33 Declarant and Homebuilder Exemption. The provisions of this Article are intended to restrict certain uses that may be harmful or affect the ambience or aesthetic appeal of the Property; the restrictions are not intended to prohibit the Declarant or Homebuilders from performing such work as may be necessary for the development of the Property or the construction of Improvements thereon. The restrictions in this Article shall not be binding on Declarant or Homebuilders in the performance of any work required in order to complete construction of the Property, or any portion thereof. ARTICLE 3 3.01 Approval for Construction. Unless prosecuted by the Declarant, no Improvements shall be constructed upon any Lot without the prior written approval of the ACC in accordance with Article 7 of this Declaration. 3.02 Masonry Requirements. The masonry requirements for each residence constructed on a Lot are set forth in the Design Guidelines. 3.03 Minimum Square Footage. The minimum square footage requirements for each residence constructed on a Lot are set forth in the Design Guidelines. 3.04 Garages. The garage requirements for each residence constructed on a Lot are set forth in the Design Guidelines. 3.05 Fences; Sidewalks. All fences and walls shall comply with all Applicable Law. Unless otherwise approved by the ACC, no fence, wall or hedge will be erected or maintained on any Lot nearer to the street than the front elevation of the residence constructed on the Lot, except for fences erected in conjunction with the model homes or sales offices. The ACC will have the sole discretion to determine the front elevation of the residence for the purpose of this Section 3.05. Fences constructed on corner lots may be installed one (1) foot from the sidewalk and/or curb along the side yard adjacent to the street provided that such fencing complies with -17- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Applicable Law. The fencing requirements for each residence constructed on a Lot are set forth in the Design Guidelines. If required by the Plat, the Owner of each Lot shall construct, at such Owner's sole cost and expense and prior to occupying any Improvement, a sidewalk on such Owner's Lot, located and designed in conformance with the Plat. 3.06 Building Restrictions. All building materials must be approved in advance by the ACC. All projections from a residence or other structure, including but not limited to chimney flues, vents, gutters, downspouts, utility boxes, porches, railings and exterior stairways must, unless otherwise approved by the ACC, match the color of the surface from which they project. No highly reflective finishes (other than glass, which may not be mirrored) shall be used on exterior surfaces (other than surfaces of hardware fixtures), including, without limitation, the exterior surfaces of any Improvements. 3.07 Alteration or Removal of Improvements. Any construction, other than normal maintenance, which in any way alters the exterior appearance of any Improvement, or the removal of any Improvement shall be performed only with the prior written approval of the ACC. 3.08 Drainage. There shall be no interference with the established drainage patterns over any of the Property, including the Lots, except by Declarant, unless adequate provision is made for proper drainage and such provision is approved in advance by the ACC. Specifically, and not by way of limitation, no Improvement, including landscaping, may be installed which impedes the proper drainage of water between Lots. 3.09 Construction Activities. The Restrictions will not be construed or applied so as to unreasonably interfere with or prevent normal construction activities during the construction of Improvements by an Owner (including Declarant or a Homebuilder) upon or within the Property. Specifically, no such construction activities will be deemed to constitute a nuisance or a violation of the Restrictions by reason of noise, dust, presence of vehicles or construction machinery, posting of signs or similar activities, provided that such construction is pursued to completion with reasonable diligence and conforms to usual construction practices in the area. In the event that construction upon any Lot does not conform to usual practices in the area as determined by the ACC in its sole and reasonable judgment, the ACC will have the authority to seek an injunction to stop such construction. In addition, if during the course of construction upon any Lot there is excessive accumulation of debris of any kind which would render the Lot or any portion thereof unsanitary, unsightly, offensive, or detrimental to it or any other portion of the Property, then the ACC may contract for or cause such debris to be removed, and the Owner of the Lot will be liable for all reasonable expenses incurred in connection therewith. 3.10 Roofing. The roofing requirements for each residence constructed on a Lot are set forth in the Design Guidelines. AUSTIN 1/699746v.3 46145-8 10/22/2013 -18- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS i:RRIGIr 1 3.11 Swimming Pools. Specific swimming pool requirements are set forth in the Design Guidelines. Any swimming pool constructed on a Lot must be enclosed with a fence or other enclosure device completely surrounding the swimming pool which, at a minimum, satisfies all Applicable Law. Nothing in this Section 3.11 is intended or shall be construed to limit or affect an Owner's obligation to comply with any Applicable Law concerning swimming pool enclosure requirements. Above -ground or temporary swimming pools are prohibited. 3.12 Solar Energy Device. During the Development Period this Section 3.12 does not apply and the Declarant must approve in advance and in writing the installation of any solar energy device or apparatus (a "Solar Energy Device"). Until expiration or termination of the Development Period, the Declarant may prohibit the installation of any Solar Energy Device. After expiration or termination of the Development Period, Solar Energy Devices may be installed with the advance written approval of the ACC. (a) Application. To obtain ACC approval of a Solar Energy Device, the Owner shall provide the ACC with the following information: (i) the proposed installation location of the Solar Energy Device; and (ii) a description of the Solar Energy Device, including the dimensions, manufacturer, and photograph or other accurate depiction (the "Solar Application"). A Solar Application may only be submitted by an Owner. The Solar Application shall be submitted in accordance with the provisions of Article 7 of this Declaration. (b) Approval Process. The ACC will review the Solar Application in accordance with the terms and provisions of Article 7 of this Declaration. The ACC will approve a Solar Energy Device if the Solar Application complies with Section 3.12(c) below UNLESS the ACC makes a written determination that placement of the Solar Energy Device, despite compliance with Section 3.12(c), will create a condition that substantially interferes with the use and enjoyment of property within the Property by causing unreasonable discomfort or annoyance to persons of ordinary sensibilities. The ACC's right to make a written determination in accordance with the foregoing sentence is negated if all Owners of Lots immediately adjacent to the Owner/applicant provide written approval of the proposed placement. Any proposal to install a Solar Energy Device on property owned or maintained by the Association or property owned in common by Members of the Association must be approved in advance and in writing by the Board, and the Board need not adhere to this policy when considering any such request. (c) Approval Conditions. Unless otherwise approved in advance and in writing by the ACC, each Solar Application and each Solar Energy Device to be installed in accordance therewith must comply with the following: (i) The Solar Energy Device must be located on the roof of the residence located on the Owner's Lot, entirely within a fenced area of the Owner's Lot, or entirely within a. fenced patio located on the Owner's Lot. If the -19- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Solar Energy Device will be located on the roof of the residence, the ACC may designate the location for placement unless the location proposed by the Owner increases the estimated annual energy production of the Solar Energy Device, as determined by using a publicly available modeling tool provided by the National Renewable Energy Laboratory, by more than 10 percent above the energy production of the Solar Energy Device if installed in the location designated by the ACC. If the Owner desires to contest the alternate location proposed by the ACC, the Owner should submit information to the ACC which demonstrates that the Owner's proposed location meets the foregoing criteria. If the Solar Energy Device will be located in the fenced area of the Owner's Lot or patio, no portion of the Solar Energy Device may extend above the fence line. (ii) If the Solar Energy Device is mounted on the roof of the principal residence located on the Owner's Lot, then: (a) the Solar Energy Device may not extend higher than or beyond the roofline; (b) the Solar Energy Device must conform to the slope of the roof and the top edge of the Solar Device must be parallel to the roofline; (c) the frame, support brackets, or visible piping or wiring associated with the Solar Energy Device must be silver, bronze or black. 3.13 Rainwater Harvesting Systems. Rain barrels or rainwater harvesting systems (a "Rainwater Harvesting System") may be installed with the advance written approval of the ACC. (a) Application. To obtain ACC approval of a Rainwater Harvesting System, the Owner shall provide the ACC with the following information: (a) the proposed installation location of the Rainwater Harvesting System; and (b) a description of the Rainwater Harvesting System, including the color, dimensions, manufacturer, and photograph or other accurate depiction (the "Rain System Application'). A Rain System Application may only be submitted by an Owner. (b) Approval Process. The decision of the ACC will be made in accordance with Article 7 of this Declaration. Any proposal to install a Rainwater Harvesting System on property owned by the Association or property owned in common by Members of the Association must be approved in advance and in writing by the Board, and the Board need not adhere to this policy when considering any such request. (c) Approval Conditions. Unless otherwise approved in advance and in writing by the ACC, each Rain System Application and each Rainwater Harvesting System to be installed in accordance therewith must comply with the following: AUSTIN _1 /699746v.3 46145-8 10/22/2013 -20- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS imnal1_+ni=a (i) The Rainwater Harvesting System must be consistent with the color scheme of the residence constructed on the Owner's Lot, as reasonably determined by the ACC. (ii) The Rainwater Harvesting System does not include any language or other content that is not typically displayed on such a device. (iii) The Rainwater Harvesting System is in no event located between the front of the residence constructed on the Owner's Lot and any adjoining or adjacent street. (iv) There is sufficient area on the Owner's Lot to install the Rainwater Harvesting System, as reasonably determined by the ACC. (v) If the Rainwater Harvesting System will be installed on or within the side yard of a Lot, or would otherwise be visible from a street, the Common Area, or another Owner's Lot, the ACC may regulate the size, type, shielding of, and materials used in the construction of the Rainwater Harvesting System. See Section 3.13(4) for additional guidance. (d) Guidelines. If the Rainwater Harvesting System will be installed on or within the side yard of a Lot, or would otherwise be visible from a street, the Common Area, or another Owner's Lot, the ACC may regulate the size, type, shielding of, and materials used in the construction of the Rainwater Harvesting System. Accordingly, when submitting a Rain System Application, the application should describe methods proposed by the Owner to shield the Rainwater Harvesting System from the view of any street, Common Area, or another Owner's Lot. When reviewing a Rain System Application for a Rainwater Harvesting System that will be installed on or within the side yard of a Lot, or would otherwise be visible from a street, the Common Area, or another Owner's Lot, any additional requirements imposed by the ACC to regulate the size, type, shielding of, and materials used in the construction of the Rainwater Harvesting System, may notrp ohibit the economic installation of the Rainwater Harvesting System, as reasonably determined by the ACC. ARTICLE 4 GRANADA RESIDENTIAL COMMUNITY, INC. 4.01 Organization. The Association will be a nonprofit corporation created for the purposes, charged with the duties, and vested with the powers of a Texas non-profit corporation. Neither the Certificate nor Bylaws will for any reason be amended or otherwise changed or interpreted so as to be inconsistent with this Declaration. 4.02 Membership. AUSTIN 1/699746v.3 46145-8 10/22/2013 -21- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS C (a) Mandatory Membership. Any person or entity, upon becoming an Owner, will automatically become a Member of the Association. Membership will be appurtenant to and will run with the ownership of the Lot that qualifies the Owner thereof for membership, and membership may not be severed from the ownership of the Lot, or in any way transferred, pledged, mortgaged or alienated, except together with the title to such Lot. If you acquire a Lot you automatically become a member of the Association. Membership is Mandatory! (b) Easement of. Enjoyment — Common Area. Every Member will have a right and easement of enjoyment in and to all of the Common Area and an access easement by and through any Common Area, which easements will be appurtenant to and will pass with the title to such Member's Lot, subject to the following restrictions and reservations: (i) The right of the Declarant to cause such Improvements and features to be constructed upon the Common Area, as determined from time to time by the Declarant, in the Declarant's sole and absolute discretion; (ii) The right of the Association to suspend the right to use the Common Area. for any period during which any Assessment against such Member's Lot remains past due and for any period during which such member is in violation of any provision of this Declaration, (iii) The right of the Association and Declarant (during the Development Period) to dedicate or transfer all or any part of the Common Area to any public agency, authority or utility for any purpose; (iv) The right of the Association and Declarant (during the Development Period) to grant easements or licenses over and across the Common Area; (v) The right of the Association to borrow money for the purpose of improving the Common Area and, in furtherance thereof, mortgage the Common Area; (vi) The right of the Declarant, during the Development Period, and the Board thereafter, to promulgate Rules regarding the use of the Common Area and any Improvements thereon; and (vii) The right of the Association to contract for services with any third parties on such terms as the Association may determine. 4.03 Governance. The Board will consist of at least three (3) persons elected at the annual meeting of the Association, or at a special meeting called for such purpose. Notwithstanding the foregoing provision or any provision in this Declaration to the contrary, -22- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Declarant will have the sole right to appoint and remove all members of the Board until the 10th anniversary of the date this Declaration is Recorded. No later than the 10th anniversary of the date this Declaration is Recorded, or sooner as determined by Declarant, the Board will hold a meeting of Members of the Association for the purpose of electing one-third of the Board (the "Initial Member Election Meeting"), which Board member(s) must be elected by Owners other than the Declarant. Declarant shall continue to have the sole right to appoint and remove two-thirds of the Board from and after the Initial Member Election Meeting until expiration or termination of the Development Period. 4.04 Voting Rights. The right to cast votes and the number of votes which may be cast for election of members to the Board (except as provided by Section 4.03) and on all other matters to be voted on by the Members will be calculated as set forth below. (i) The Owner of each Lot will have one (1) vote for each Lot so owned. (ii) In addition to the votes to which Declarant is entitled by reason of Section 4.04(i), for every one (1) vote outstanding in favor of any other person or entity, Declarant will have four (4) additional votes until the expiration or termination of the Development Period. (iii) When more than one person or entity owns a portion of the fee simple interest in any Lot, all such persons or entities will be Members. The vote or votes (or fraction thereof) for such Lot will be exercised by the person so designated in writing to the Secretary of the Association by the Owner of such Lot, and in no event will the vote for such Lot exceed the total votes to which such Lot is otherwise entitled under this Section 4.04. 4.05 Powers. The Association will have the powers of a Texas nonprofit corporation. It will further have the power to do and perform any and all acts that may be necessary or proper, for or incidental to, the exercise of any of the express powers granted to it by Applicable Law or this Declaration. Without in any way limiting the generality of the two preceding sentences, the Board, acting on behalf of the Association, will have the following powers at all times: (a) Rules, Bylaws and Community Manual. To make, establish and promulgate, and in its discretion to amend from time to time, or repeal and re-enact, such rules, regulations, Bylaws and Community Manual not in conflict with this Declaration, as it deems proper, covering any and all aspects of the Property (including the operation, maintenance and preservation thereof) or the Association. Any Rules, and any modifications to existing Rules, or the Bylaws proposed by the Board must be approved in advance and in writing by the Declarant until expiration or termination of the Development Period. AUSTIN 1/699746v.3 46145-8 10/22/2013 -23- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS WM'PT1 (b) Insurance. To obtain and maintain in effect, policies of insurance that, in the opinion of the Board, are reasonably necessary or appropriate to carry out the Association's functions. (c) Records. To keep books and records of the Association's affairs, and to make such books and records, together with current copies of the Restrictions available for inspection by the Owners, Mortgagees, and insurers or guarantors of any Mortgage upon request during normal business hours. (d) Assessments. To levy and collect assessments, as provided in Article 6 below. (e) Right of Entr3r and Enforcement. To enter at any time without notice in an emergency (or in the case of a non -emergency, after twenty-four (24) hours written notice), without being liable to any Owner or Resident, upon any Lot and into any Improvement thereon for the purpose of enforcing the Restrictions or for the purpose of maintaining or repairing any area, Improvement or other facility to conform to the Restrictions. The expense incurred by the Association in connection with the entry upon any Lot and the maintenance and repair work conducted thereon or therein will be a personal obligation of the Owner of the Lot so entered, will be deemed an Individual Assessment against such Lot, will be secured by a lien upon such Lot, and will be enforced in the same manner and to the same extent as provided in Article 6 hereof for Assessments. The Association will have the power and authority from time to time, in its own name and on its own behalf, or in the name of and on behalf of any Owner who consents thereto, to commence and maintain actions and suits to enforce, by mandatory injunction or otherwise, or to restrain and enjoin, any breach or threatened breach of the Restrictions. The Association is also authorized to settle claims, enforce liens and take all such action as it may deem necessary or expedient to enforce the Restrictions; provided, however, that the Board will never be authorized to expend any Association funds for the purpose of bringing suit against Declarant, or its successors or assigns. The Association may not alter or demolish any Improvements on any Lot other than Common Area in enforcing these Restrictions before a judicial order authorizing such action has been obtained by the Association, or before the written consent of the Owner(s) of the affected Lot(s) has been obtained. EACH SUCH OWNER AND RESIDENT WILL INDEMNIFY AND HOLD HARMLESS THE ASSOCIATION, ITS OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS FROM ANY COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION INCURRED OR THAT MAY ARISE BY REASON OF THE ASSOCIATION'S ACTS OR ACTIVITIES UNDER THIS SECTION 4.05(e) (INCLUDING ANY COST, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION ARISING OUT OF THE ASSOCIATION'S NEGLIGENCE IN CONNECTION THEREWITH), EXCEPT FOR SUCH COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION ARISING BY REASON OF THE ASSOCIATION'S GROSS NEGLIGENCE OR WILLFUL AUSTIN 1/699746v.3 46145-8 10/22/2013 -24- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS E �.M MISCONDUCT. "GROSSDOES •INCLUDE CONTRIBUTORY NEGLIGENCE OR • OF i'. (f) mal and Accounting Services. To retain and pay for legal and accounting services necessary or proper in the operation of the Association. (g) Conveyances. To grant and convey to any person or entity the real property and/or other interest, including fee title, leasehold estates, easements, rights-of-way or mortgages, out of, in, on, over, or under any Common Area for the purpose of constructing, erecting, operating or maintaining the following: (i) Parks, parkways or other recreational facilities or structures; (ii) Roads, streets, sidewalks, signs, street lights, walks, driveways, trails and paths; (iii) Lines, cables, wires, conduits, pipelines or other devices for utility purposes; (iv) Sewers, water systems, storm water drainage systems, sprinkler systems and pipelines; and/or (v) Any similar Improvements or facilities. Nothing set forth above, however, will be construed to permit use or occupancy of any Improvement or other facility in a way that would violate applicable use and occupancy restrictions imposed by the Restrictions or by Applicable Law. In addition, until expiration or termination of the Development Period, any grant or conveyance under this Section 4.05(8) must be approved in advance and in writing by the Declarant. (h) Manager. To retain and pay for the services of a person or firm (the "Manager'), which may include Declarant or any affiliate of Declarant, to manage and operate the Association, including its property, to the extent deemed advisable by the Board. Personnel may be employed directly by the Association or may be furnished by the Manager. Each contract entered into between the Association and the Manager will be terminable by the Association without cause upon sixty (60) days written notice to the Manager. To the extent permitted by Applicable Law, the Board may delegate any other duties, powers and functions to the Manager. In addition, the Board may adopt transfer fees, resale certificate fees or any other fees associated with the provision of management services to the Association or its Members. THE MEMBERS HEREBY RELEASE THE ASSOCIATION AND THE MEMBERS OF THE BOARD AND COMMITTEE MEMBERS FROM LIABILITY FOR ANY OMISSION OR IMPROPER EXERCISE BY THE MANAGER OF ANY SUCH DUTY, POWER OR FUNCTION SO DELEGATED. AUSTIN 1/699746v.3 46145-8 10/22/2013 -25- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS (i) Property Services. To pay for water, sewer, garbage removal, street lights, landscaping, gardening and all other utilities, services, repair and maintenance for any portion of the Property, Common Area, private or public recreational facilities, easements, roads, roadways, rights -of -ways, signs, parks, parkways, median strips, sidewalks, paths, trails, ponds, and lakes. (j) Other Services and Properties. To obtain and pay for any other property and services, and to pay any other taxes or assessments that the Association or the Board is required or permitted to secure or to pay for pursuant to Applicable Law or under the terms of the Restrictions or as determined by the Board. (k) Construction on Common Area. To construct new Improvements or additions to any property owned, leased, or licensed by the Association, subject to the approval of the Board and the Declarant until expiration or termination of the Development Period. (1) Contracts. To enter into Bulk Rate Contracts or other contracts or licenses with Declarant or any third party on such terms and provisions as the Board will determine, to operate and maintain any Common Area or other property, or to provide any service, including but not limited to cable, utility, or telecommunication services, or perform any function on behalf of Declarant, the Board, the Association, or the Members. During the Development Period, all Bulk Rate Contracts must be approved in advance and in writing by the Declarant. (m) Property Ownership. To acquire, own and dispose of all manner of real and personal property, including habitat, whether by grant, lease, easement, gift or otherwise. During the Development Period, all acquisitions and dispositions of the Association hereunder must be approved in advance and in writing by the Declarant. (n) Rules. To establish Rules governing and limiting the use of the Common Area and any Improvements thereon. 4.06 Accegtance of Common Area. The Association may acquire, hold, and dispose of any interest in tangible and intangible personal property and real property. Declarant and its assignees may transfer or convey to the Association interests in real or personal property within or for the benefit of the Property, or the Property and the general public, and the Association will accept such transfers and conveyances. Such property may be improved or unimproved and may consist of fee simple title, easements, leases, licenses, or other real or personal property interests. Such property will be accepted by the Association and thereafter will be maintained as Common Area by the Association for the benefit of the Property and/or the general public subject to any restrictions set forth in the deed or other instrument transferring or assigning such property to the Association. Upon Declarant's written request, the Association will re- AUSTIN 1/699746v.3 46145-8 10/22/2013 -26 - GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS I: MIMima a 3 convey to Declarant any unimproved real property that Declarant originally conveyed to the Association, as determined in the sole and absolute discretion of the Declarant. 4.07 Indemnification. To the fullest extent permitted by Applicable Law but without duplication (and subject to) any rights or benefits arising under the Certificate or Bylaws of the Association, the Association will indemnify any person who was, or is, a party, or is threatened to be made a party to any threatened pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that he is, or was, a director, officer, committee member, employee, servant or agent of the Association against expenses, including attorneys' fees, reasonably incurred by him in connection with such action, suit or proceeding if it is found and determined by the Board or a court of competent jurisdiction that he or she: (i) acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the Association; or (ii) with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any action, suit or proceeding by settlement, or upon a plea of nolo contendere or its equivalent, will not of itself create a presumption that the person did not act in good faith or in a manner which was reasonably believed to be in, or not opposed to, the best interests of the Association or, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful. 4.08 Insurance. The Board may purchase and cause to be maintained, at the expense of the Association, insurance on behalf of any person who is acting as a director, officer, committee member, employee, servant or agent of the Association against any liability asserted against or incurred by such person in any such capacity, or arising out of such person's status as such, whether or not the Association would have the power to indemnify such person against such liability or otherwise. 4.09 Bulk Rate Contracts. Without limitation on the generality of the Association powers set out in Section 4.05 hereinabove (except that during the Development Period, all Bulk Rate Contracts must be approved in advance and in writing by the Declarant), the Association will have the power to enter into Bulk Rate Contracts at any time and from time to time. The Association may enter into Bulk Rate Contracts with any service providers chosen by the Board (including Declarant, and/or any entities in which Declarant, or the owners or partners of Declarant are owners or participants, directly or indirectly). The Bulk Rate Contracts may be entered into on such terms and provisions as the Board may determine in its sole and absolute discretion. The Association may, at its option and election, add the charges payable by such Owner under such Bulk Rate Contract to the Assessments against such Owner's Lot. In this regard, it is agreed and understood that, if any Owner fails to pay any charges due by such Owner under the terms of any Bulk Rate Contract, then the Association will be entitled to collect such charges by exercising the same rights and remedies it would be entitled to exercise under this Declaration with respect to the failure by such Owner to pay Assessments, including without limitation the right to foreclose the lien against such Owner's Lot which is reserved AUSTIN _1/699746v.3 46145-8 10/22/2013 -27- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS under the terms and provisions of this Declaration. In addition, in the event of nonpayment by any Owner of any charges due under any Bulk Rate Contract and after the lapse of at least twelve (12) days since such charges were due, the Association may, upon five (5) days' prior written notice to such Owner (which may run concurrently with such 12 day period), in addition to all other rights and remedies available pursuant to Applicable Law, terminate, in such manner as the Board deems appropriate, any utility service or other service provided at the cost of the Association and not paid for by such Owner (or the Resident of such Owner's Lot) directly to the applicable service or utility provider. Such notice will consist of a separate mailing or hand delivery at least five (5) days prior to a stated date of termination, with the title "termination notice" or similar language prominently displayed on the notice. The notice will include the office or street address where the Owner (or the Resident of such Owner's Lot) can make arrangements for payment of the bill and for re -connection or re -institution of service. No utility or cable television sei vice will be disconnected on a day, or immediately preceding a day, when personnel are not available for the purpose of collection and reconnecting such services. 4.10 Community Systems. The Association is specifically authorized to provide, or to enter into contracts to provide Community Systems. Any such contracts may provide for installation, operation, management, maintenance, and upgrades or modifications to the Community Systems as the Board determines appropriate. Each Owner acknowledges that interruptions in Community Systems and services will occur from time to time. Declarant and the Association, or any of their respective successors or assigns shall not be liable for, and no Community System or service user shall be entitled to refund, rebate, discount, or offset in applicable fees for, any interruption in Community Systems and services, regardless of whether or not such interruption is caused by reasons within the service provider's control. 4.11 Declarants Right to Contribute to Revenues of the Association. Declarant shall have the right, but not the obligation, in its sole discretion and from time to time, to contribute to the revenues of the Association. At the option of Declarant, such contribution may be reflected on the books and records of' the Association as a loan, in which event it shall be repaid by the Association to Declarant, at the discretion of Declarant. If treated as a loan, the contribution shall accrue interest, compounded monthly, from the date it is made until the date of its repayment, at the short term Applicable Federal Rate ("AFR" ), as published by the Internal Revenue Service, and adjusted each month to reflect the AFR for such month. 4.12 Protection of Declarants Interests. Despite any assumption of control of the Board by Owners other than Declarant, until the expiration or termination of the Development Period, the Board is prohibited from taking any action which would discriminate against Declarant, or which would be detrimental to the sale of Lots owned by Declarant. Declarant shall be entitled to determine, in its sole and absolute discretion, whether any such action discriminates or is detrimental to Declarant. The Board will be required to continue the same level and quality of maintenance, operations and services as that provided immediately prior to AUSTIN _1 /699746v.3 46145-8 10/22/2013 -28- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS 1E .1 • assumption of control of the Board by Owners other than Declarant until the expiration or termination of the Development Period. 4.13 Administration of Common Area. The administration of the Common Area by the Association shall be in accordance with the provisions of Applicable Law and the Restrictions, and of any other agreements, documents, amendments or supplements to the foregoing which may be duly adopted or subsequently required by any institutional or governmental lender, purchaser, insurer or guarantor of mortgage loans (including, for example, the Federal Home Loan Mortgage Corporation) designated by Declarant or by any governmental or quasi -governmental agency having regulatory jurisdiction over the Common Area or by any title insurance company selected by Declarant to insure title to any portion of the Common Area. 4.14 Private Streets. The Association shall be obligated to maintain the Private Streets in a good and functioning condition and in compliance with Applicable Law. The Private Streets shall provide perpetual access to all Lots for police and other emergency vehicles, public and private utility maintenance and service personnel, solid waste collection services, the U.S. Postal Service, and government employees in pursuit of their official duties. Access to the Private Streets for the persons and entities referenced in the preceding sentence shall be reasonably provided by the Association. 4.15 Notices and Disclaimers as to Security Systems. NEITHER THE DECLARANT, A HOMEBUILDER, NOR THE ASSOCIATION, OR THEIR SUCCESSORS OR ASSIGNS GUARANTEE OR WARRANT, EXPRESSLY OR IMPLIEDLY, THE MERCHANTABILITY OR FITNESS FOR USE OF ANY SUCH SECURITY SYSTEM OR SERVICES, OR THAT ANY SYSTEM OR SERVICES WILL PREVENT INTRUSIONS NOTIFY AUTHORITIES OF FIRES OR OTHER OCCURRENCES, OR THE CONSEQUENCES OF SUCH OCCURRENCES, REGARDLESS OF WHETHER OR NOT THE SYSTEM OR SERVICES ARE DESIGNED TO MONITOR SAME; AND EVERY OWNER OR RESIDENT OF PROPERTY RECEIVING SECURITY SERVICES THROUGH THE COMMUNITY SYSTEMS ACKNOWLEDGES THAT NEITHER THE DECLARANT, A HOMEBUILDER, NOR THE ASSOCIATION, OR ANY OR THEIR SUCCESSORS OR ASSIGNS ARE INSURERS OF THE OWNER OR RESIDENT'S PROPERTY OR OF THE PROPERTY OF OTHERS LOCATED ON THE LOT AND WILL NOT BE RESPONSIBLE OR LIABLE FOR LOSSES, INJURIES OR DEATHS RESULTING FROM SUCH OCCURRENCES. It is extremely difficult and impractical to determine the actual damages, if any, which may proximately result from a failure on the party of a security service provider to perform any of its obligations with respect to security services and, therefore, every Owner or Resident of property receiving security services through the Community Systems agrees that neither the Declarant, a Homebuilder, nor the Association, or their successors or assigns assumes liability for loss or damage to property or for personal injury or death to persons due to any reason, including, without limitation, failure in transmission of an alarm, interruption of security service or failure to respond to an alarm because of: (a) any failure of AUSTIN 1/699746v.3 46145-8 10/22/2013 -29- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS E '4"if0 the Owner's security system; (b) any defective or damaged equipment, device, line or circuit; (c) negligence, active or otherwise, of the security service provider or its officers, agents or employees; or (d) fire, flood, riot, war, act of God or other similar causes which are beyond the control of the security service provider. Every Owner and Resident obtaining security services through the Community Systems further agrees for himself, his grantees, tenants, guests, invitees, licensees and family members that if any loss or damage should result from a failure of performance or operation, or from defective performance or operation, or from improper installation, monitoring or servicing of the system, or from negligence, active or otherwise, of the security service provider or its officers, agents, or employees, the liability, if any, of the Declarant, a Homebuilder, the Association, or their successors or assigns for loss, damage, injury or death shall be limited to a sum not exceeding Two Hundred Fifty U.S. Dollars ($250.00), which limitation apply irrespective of the cause or origin of the loss or damage and notwithstanding that the loss or damage results directly or indirectly from negligent performance, active or otherwise, or non-performance by an officer, agent or employee of Declarant, a Homebuilder, or the Association, or their successors or assigns. Further, in no event will Declarant, a Homebuilder, the Association, or their successors or assigns be liable for consequential damages, wrongful death, personal injury or commercial loss. ARTICLE 5 INSURANCE 5.01 Insurance. Each Owner will be required to purchase and maintain commercially standard insurance on the Improvements located upon such Owner's Lot. The Association will not be required to maintain insurance on the Improvements constructed upon any Lot. The Association may, however, obtain such insurance as it may deem necessary, including but not limited to such policies of liability and property damage insurance as the Board, in its discretion, may deem necessary. Insurance premiums for such policies will be a common expense to be included in the assessments levied by the Association. The acquisition of insurance by the Association will be without prejudice to the right and obligation of any Owner to obtain additional individual insurance. 5.02 Restoration. In the event of any fire or other casualty, unless otherwise approved by the ACC, the Owner will promptly repair, restore and replace any damaged or destroyed structures to their same exterior condition existing prior to the damage or destruction thereof. Such repair, restoration or replacement will be commenced and completed in a good and workmanlike manner and diligently pursed to completion using exterior materials identical to those originally used in the structures damaged or destroyed. To the extent that the Owner fails to commence such repair, restoration or replacement of substantial or total damage or destruction within one hundred and twenty (120) days after the occurrence of such damage or destruction, and thereafter prosecute same to completion, or if the Owner does not clean up any debris resulting from any damage within thirty (30) days after the occurrence of such damage, the Association may commence, complete or effect such repair, restoration, replacement or -30- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 clean-up, and such Owner will be personally liable to the Association for the cost of such work; provided, however, that if the Owner is prohibited or delayed by Applicable Law from commencing such repair, restoration, replacement or clean-up, the rights of the Association under this provision will not arise until the expiration of thirty (30) days after such prohibition or delay is removed. If the Owner fails to pay such cost upon demand by the Association, the cost thereof (plus interest from the date of demand until paid at the maximum lawful rate, or if there is no such maximum lawful rate, than at the rate of one and one-half percent (1ih%) per month) will be added to the Assessment chargeable to the Owner's Lot. Any such amounts added to the Assessments chargeable against a Lot will be secured by the liens reserved in the Declaration for Assessments and may be collected by any means provided in this Declaration for the collection of Assessments, including, but not limited to, foreclosure of such liens against the Owner's Lot. EACH SUCH OWNER WILL INDEMNIFY AND HOLD HARMLESS THE ASSOCIATION AND ITS OFFICERS, DIRECTORS, COMMITTEE MEMBERS, EMPLOYEES AND AGENTS FROM ANY COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION INCURRED OR THAT MAY ARISE BY REASON OF THE ASSOCIATION'S ACTS OR ACTIVITIES UNDER THIS SECTION 5.02, EXCEPT FOR SUCH COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR COST OF ACTION ARISING BY REASON OF THE ASSOCIATION'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. "GROSS NEGLIGENCE" AS USED HEREIN DOES NOT INCLUDE SIMPLE NEGLIGENCE, CONTRIBUTORY NEGLIGENCE OR SIMILAR NEGLIGENCE SHORT OF ACTUAL GROSS NEGLIGENCE. 5.03 Mechanic's and Materialmen's Lien. Each Owner whose structure is repaired, restored, replaced or cleaned up by the Association pursuant to the rights granted under this Article 5, hereby grants to the Association an express mechanic's and materialmen's lien for the reasonable cost of such repair, restoration, or replacement of the damaged or destroyed Improvement to the extent that the cost of such repair, restoration or replacement exceeds any insurance proceeds allocable to such repair, restoration or replacement and delivered to the Association. Upon request by the Board, and before the commencement of any reconstruction, repair, restoration or replacement, such Owner will execute all documents sufficient to effectuate such mechanic's and materialmen's lien in favor of the Association. ARTICLE 6 COVENANT FOR ASSESSMENTS 6.01 Assessments. (a) Established by Board. Assessments established by the Board pursuant to the provisions of this Article 6 will be levied against each Lot in amounts determined pursuant to Section 6.08 below. The total amount of Assessments will be determined by the Board pursuant to Section 6.03, 6.04, 6.05, 6.06 and/or 6.07. AUSTIN 1/699746v.3 46145-8 10/22/2013 -31- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS (b) Personal Obligation; Lien. Each Assessment, together with such interest thereon and costs of collection as hereinafter provided, will be the personal obligation of the Owner of the Lot against which the Assessment is levied and will be secured by a lien hereby granted and conveyed by Declarant to the Association against each such Lot and all Improvements thereon. The Association may enforce payment of such Assessments in accordance with the provisions of this Article. 6.02 Maintenance Fund. The Board will establish a maintenance fund into which will be deposited all monies paid to the Association and from which disbursements will be made in performing the functions of the Association under this Declaration. The funds of the Association may be used for any purpose authorized by the Restrictions and the Applicable Law. 6.03 Regular Assessments. Prior to the beginning of each fiscal year, the Board will estimate the expenses to be incurred by the Association during such year in performing its functions and exercising its powers under the Restrictions, including, but not limited to, the cost of all management, repair and maintenance, the cost of providing street and other lighting, the cost of administering and enforcing the Restrictions, and will estimate the amount needed to maintain a reasonable provision for contingencies and an appropriate replacement reserve, and will give due consideration to any expected income and any surplus from the prior year's fund. Regular Assessments sufficient to pay such estimated net expenses will then be levied at the level set by the Board in its sole and absolute discretion, and the Board's determination will be final and binding so long as it is made in good faith. If the sums collected prove inadequate for any reason, including nonpayment of any Individual Assessment by any Owner, the Association may at any time, and from time to time, levy further Regular Assessments in the same manner. All such Regular Assessments will be due and payable to the Association at the beginning of the fiscal year or during the fiscal year in equal monthly installments on or before the first day of each month, or in such other manner as the Board may designate in its sole and absolute discretion. 6.04 Working Capital Assessment. Each Owner (other than Declarant) of a Lot will pay a one-time working capital assessment to the Association in such amount as may be determined by the Board from time to time in its sole and absolute discretion. Such working capital assessment need not be uniform among all Lots, and the Board is expressly authorized to levy working capital assessments of varying amounts depending on the size, use and general character of the Lots then being made subject to the levy. The levy of any working capital assessment will be effective only upon the Recordation of a written notice, signed by a duly authorized officer of the Association, setting forth the amount of the working capital assessment and the Lots to which it applies. Notwithstanding the foregoing provision, the following transfers will not be subject to the working capital assessment: (i) foreclosure of a deed of trust lien, tax lien, or the Association's assessment lien; (ii) transfer to, from, or by the Association; (iii) voluntary transfer -32- AUSTIN 1/699746v.3 46145-8 10/22/2013 GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS M Mi PTI by an Owner to one or more co-owners, or to the Owner's spouse, child, or parent. Additionally, an Owner who (i) is a Homebuilder; or (ii) acquires a Lot for the purpose of resale to a Homebuilder (a "Development Owner") will not be subject to the working capital assessment; however, the working capital assessment will be payable by any Owner who acquires a Lot from a Homebuilder or Development Owner for residential living purposes or by any Owner who: (i) acquires a Lot and is not in the business of constructing single-family residences for resale to a third party; or (ii) who acquires the Lot for any purpose other than constructing a single-family residence thereon for resale to a third party. The working capital assessment will be in addition to, not in lieu of, any other assessments levied in accordance with this Article 6 and will not be considered an advance payment of such assessments. The working capital assessment hereunder will be due and payable by the transferee to the Association immediately upon each transfer of title to the Lot, including upon transfer of title from one Owner of such Lot to any subsequent purchaser or transferee thereof. The Declarant during the Development Period, and thereafter the Board, will have the power to waive the payment of any working capital assessment attributable to a Lot (or all Lots) by the Recordation of a waiver notice, which waiver may be temporary or permanent. 6.05 Amenity Reimbursement Fee. Each Owner who acquires a Lot from the Declarant will pay a one-time amenity reimbursement fee to the Declarant in the amount of $750.00 per Lot owned by such Owner. The amenity reimbursement fee will be in addition to, not in lieu of, any other Assessments levied in accordance with this Article 6 and will not be considered an advance payment of any such Assessments. The amenity reimbursement fee is part of the consideration for the transfer of the Lot from Declarant to the Owner. The amenity reimbursement fee will be due and payable to the Declarant immediately upon transfer of title to the Lot. Declarant may the payment of any amenity reimbursement fee attributable to a Lot by the recordation in the Official Public Records of Tarrant County, Texas, of a waiver notice executed by the Declarant. 6.06 Special Assessments. In addition to the regular annual Assessments provided for above, the Board may levy special Assessments whenever in the Board's opinion such special Assessments are necessary to enable the Board to carry out the functions of the Association under the Restrictions. The amount of any special Assessments will be at the reasonable discretion of the Board. In addition to the special Assessments authorized above, the Association may, in any fiscal year, levy a special Assessment applicable to that fiscal year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Area. 6.07 Individual Assessments. In addition to any other Assessments, the Board may levy an Individual Assessment against an Owner and the Owner's Lot. Individual Assessments may include, but are not limited to: interest, late charges, and collection costs on delinquent Assessments; reimbursement for costs incurred in bringing an Owner or the Owner's Lot into compliance with the Declaration; fines for violations of the Restrictions; transfer -related fees -33- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 and resale certificate fees; fees for estoppel letters and project documents; insurance deductibles; reimbursement for damage or waste caused by willful or negligent acts of the Owner, the Owner's guests, invitees or Residents of the Owner's Lot; common expenses that benefit fewer than all of the Lots, which may be assessed according to benefit received; fees or charges levied against the Association on a per -Lot basis; and "pass through" expenses for services to Lots provided through the Association and which are equitably paid by each Lot according to the benefit received. 6.08 Amount of Assessment. (a) Assessments to be Levied. The Board shall levy Assessments against each "Assessment Unit" (as defined in Section 6.08(b) below). Unless otherwise provided in this Declaration, Assessments levied pursuant to Section 6.03 and Section 6.06 shall be levied uniformly against each Assessment Unit allocated to a Lot. (b) Assessment Unit. Each Lot shall constitute one "Assessment Unit" unless otherwise provided in Section 6.08(c) and W. (c) Assessment Exemption. Notwithstanding anything in this Declaration to the contrary, no Assessments shall be levied upon Lots owned by Declarant. (d) Other Exemptions. Declarant may, in its sole discretion, elect to: (i) exempt any un -platted or unimproved portion of the Property or any Lot from any Assessments levied or charged pursuant to this Article 6; or (ii) delay the levy of Assessments against any un - platted, unimproved or improved portion of the Property. Declarant or the Board may also exempt any portion of the Property which is dedicated and accepted by public authority from Assessments. 6.09 Late Charges. If any Assessment is not paid by the due date applicable thereto, the Owner responsible for the payment may be required by the Board, at the Board's election at any time and from time to time, to pay a late charge in such amount as the Board may designate, and the late charge (and any reasonable handling costs) will be levied as an Individual Assessment against the Lot owned by such Owner, collectible in the manner as provided for collection of. Assessments, including foreclosure of the lien against such Lot; provided, however, such charge will never exceed the maximum charge permitted under Applicable Law. 6.10 Owner's Personal Obligation; Interest. Assessments levied as provided for herein will be the personal and individual debt of the Owner of the Lot against which are levied such Assessments. No Owner may exempt himself from liability for such Assessments. In the event of default in the payment of any such Assessment, the Owner of the Lot will be obligated to pay interest on the amount of the Assessment at the highest rate allowed by applicable usury laws then in effect on the amount of the Assessment from the due date therefor (or if there is no -34- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 r4' - =3 such highest rate, then at the rate of one and one half percent (1 1/2%)per month), together with all costs and expenses of collection, including reasonable attorney's fees. Such amounts will be levied as an Individual Assessment against the Lot owned by such Owner. 6.11 Assessment Lien and Foreclosure. The payment of all sums assessed in the manner provided in this Article is, together with late charges as provided in Section 6.09 and interest as provided in Section 6.10 hereof and all costs of collection, including attorney's fees as herein provided, secured by the continuing Assessment lien granted to the Association pursuant to Section 6.01(6) above, and will bind each Lot in the hands of the Owner thereof, and such Owner's heirs, personal representatives, successors or assigns. The aforesaid lien will be superior to all other liens and charges against such Lot, except only for: (i) tax liens; (ii) all sums secured by a first mortgage lien or first deed of trust lien of record, to the extent such lien secures sums borrowed for the acquisition or improvement of the Lot in question and (iii) home equity loans or home equity lines of credit which are secured by a second mortgage lien or second deed of trust lien of record; provided that, in the case of subparagraphs (ii) and (iii) above, such Mortgage was Recorded before the delinquent Assessment was due. The Association will have the power to subordinate the aforesaid Assessment lien to any other lien. Such power will be entirely discretionary with the Board, and such subordination may be signed by an officer, agent, or attorney of the Association. The Association may, at its option and without prejudice to the priority or enforceability of the Assessment lien granted hereunder, prepare a written notice of Assessment lien setting forth the amount of the unpaid indebtedness, the name of the Owner of the Lot covered by such lien and a description of the Lot. Such notice may be signed by one of the officers, agents, or attorneys of the Association and will be Recorded. Each Owner, by accepting a deed or ownership interest to a Lot subject to this Declaration, will be deemed conclusively to have granted a power of sale to the Association to secure and enforce the Assessment lien granted hereunder. The Assessment liens and rights to foreclosure thereof will be in addition to and not in substitution of any other rights and remedies the Association may have by law and under this Declaration, including the rights of the Association to institute suit against such Owner personally obligated to pay the Assessment and/or for foreclosure of the aforesaid lien. In any foreclosure proceeding, such Owner will be required to pay the costs, expenses and reasonable attorney's fees incurred. The Association will have the power to bid (in cash or by credit against the amount secured by the lien) on the property at foreclosure or other legal sale and to acquire, hold, lease, mortgage, convey or otherwise deal with the same. Upon the written request of any Mortgagee, the Association will report to said Mortgagee any unpaid Assessments remaining unpaid for longer than sixty (60) days after the same are due. The lien hereunder will not be affected by the sale or transfer of any Lot, except, however, that in the event of foreclosure of any lien superior to the Assessment lien, the lien for any Assessments that were due and payable before the foreclosure sale will be extinguished, provided that past -due Assessments will be paid out of the proceeds of such foreclosure sale only to the extent that funds are available after the satisfaction of the indebtedness secured by the Mortgage. The provisions of the preceding sentence will not, however, relieve any subsequent Owner (including any Mortgagee or other AUSTIN 1/699746v.3 46145-8 10/22/2013 -35- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS M purchaser at a foreclosure sale) from paying Assessments becoming due and payable after the foreclosure sale. Upon payment of all sums secured by a lien of the type described in this Section 6. 11, the Association will upon the request of the Owner execute a release of lien relating to any lien for which written notice has been Recorded as provided above, except in circumstances in which the Association has already foreclosed such lien. Such release will be signed by an officer, agent, or attorney of the Association. In addition to the lien hereby retained, in the event of nonpayment by any Owner of any Assessment and after the lapse of at least twelve (12) days since such payment was due, the Association may, upon five (5) days' prior written notice (which may run concurrently with such twelve (12) day period) to such Owner, in addition to all other rights and remedies available pursuant to Applicable Law, terminate, in such manner as the Board deems appropriate, any utility or cable service provided through the Association and not paid for directly by a Owner or Resident to the utility provider. Such notice will consist of a separate mailing or hand delivery at least five (5) days prior to a stated date of disconnection, with the title "termination notice" or similar language prominently displayed on the notice. The notice will include the office or street address where the Owner or the Resident of the Owner's Lot can make arrangements for payment of the bill and for reconnection of service. Utility or cable service will not be disconnected on a day, or immediately preceding a day, when personnel are not available for the purpose of collection and reconnecting such services. Except as otherwise provided by Applicable Law, the sale or transfer of a Lot will not relieve the Owner of such Lot or such Owner's transferee from liability for any Assessments thereafter becoming due or from the lien associated therewith. If an Owner conveys its Lot and on the date of such conveyance Assessments against the Lot remain unpaid, or said Owner owes other sums or fees under this Declaration to the Association, the Owner will pay such amounts to the Association out of the sales price of the Lot, and such sums will be paid in preference to any other charges against the Lot other than liens superior to the Assessment lien and charges in favor of the State of Texas or a political subdivision thereof for taxes on the Lot which are due and unpaid. The Owner conveying such Lot will remain personally liable for all such sums until the same are fully paid, regardless of whether the transferee of the Lot also assumes the obligation to pay such amounts. The Board may adopt an administrative transfer fee to cover the expenses associated with updating the Association's records upon the transfer of a Lot to a third party; provided, however, that no transfer fee will be due upon the transfer of a Lot from Declarant to a third party. Yes, the Association can foreclose on your Lot! If you fail to pay assessments to the Association, you may lose title to your Lot if the Association forecloses its assessment lien. 6.12 Exempt Property. The following area within the Property will be exempt from the Assessments provided for in this Article: (a) All area dedicated and accepted by a public authority; -36- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN I/699746v.3 46145-8 10/22/2013 (b) The Common Area; and (c) Any portion of the Property owned by Declarant. 6.13 Fines and Damages Assessment. (a) Board Assessment. The Board may assess fines against an Owner for violations of the Restrictions which have been committed by an Owner, a Resident, or the Owner or Residents guests, agents or invitees. Any fine and/or charge for damage levied in accordance with this Section 6.23 will be considered an Individual Assessment pursuant to this Declaration. Each day of violation may be considered a separate violation if the violation continues after written notice to the Owner. The Board may assess damage charges against an Owner for pecuniary loss to the Association from property damage or destruction of Common Area or any facilities located by the Owner, Resident, or their guests, agents, or invitees. The Manager will have authority to send notices to alleged violators, informing them of their violations and asking them to comply with the Rules and/or informing them of potential or probable fines or damage assessments. The Board may from time to time adopt a schedule of fines. (b) Procedure. The procedure for assessment of fines and damage charges will be as follows: (i) the Association, acting through an officer, Board member or Manager, must give the Owner notice of the fine or damage charge not later than thirty (30) days after the assessment of the fine or damage charge by the Board; (ii) the notice of the fine or damage charge must describe the violation or damage; (iii) the notice of the fine or damage charge must state the amount of the fine or damage charge; (iv) the notice of a fine or damage charge must state that the Owner will have thirty (30) days from the date of the notice to request a hearing before the Board to contest the fine or damage charge, and (v) the notice of a fine must allow the Owner a reasonable time, by a specified date, to cure the violation (if the violation is capable of being remedied) and avoid the fine unless the Owner was given notice and a reasonable opportunity to cure a similar violation within the preceding six (6) months. AUSTIN 1/699746v.3 46145-8 10/22/2013 -37- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS (c) Due Date. Fine and/or damage charges are due immediately after the expiration of the thirty (30) day period for requesting a hearing. If a hearing is requested, such fines or damage charges will be due immediately after the Board's decision at such hearing, assuming that a fine or damage charge of some amount is confirmed by the Board at such hearing. (d) Lien Created. The payment of each fine and/or damage charge levied by the Board against the Owner of a Lot is, together with interest as provided in Section 6.10 hereof and all costs of collection, including attorney's fees as herein provided, secured by the lien granted to the Association pursuant to Section 6.01(b) of this Declaration. Unless otherwise provided in this Section 6.13, the fine and/or damage charge will be considered an Assessment for the purpose of this Article, and will be enforced in accordance with the terms and provisions governing the enforcement of assessments pursuant to this Article 6. ARTICLE 7 JILICYITECTUILAL COVITOL C•LILA Until Declarant and/or the Town Manager delegate their right to appoint and remove all members of the ACC to the Board as provided in Section 7.02(x) below, the ACC will be acting solely in Declarant's and the Town Manager's, as applicable, interest and will owe no duty to any other Owner or the Association. 7.01 Construction of Improvements. No Improvement may be erected, placed, constructed, painted, altered, modified or remodeled on any Lot, and no Lot may be re -subdivided or consolidated with other Lots or Property, by anyone other than Declarant without the prior written approval of the ACC. 7.02 Architectural Control Committee. (a) Composition. The ACC will be composed at least three (3) persons (who need not be Members or Owners) appointed as provided below, who will review Improvements proposed to be made by any Owner other than Declarant. Declarant will have the right to appoint and remove (with or without cause) two (2) members of the ACC and the Town Manager will have the right to appoint and remove (with or without cause) one (1) member of the ACC. Declarant and the Town Manager may assign their right to appoint members of the ACC to the Association by Recorded written instrument, and thereafter, the Board will have the right to appoint and remove (with or without cause) the members of the ACC. Any assignment by Declarant of the right to appoint and remove two (2) members of the ACC may be withdrawn until expiration of twelve (12) months after the expiration of the Development Period. If Declarant withdraws its assignment of the right to appoint and remove two (2) members of the ACC, then on the date of such withdrawal, Declarant will have the right to appoint and remove (with or without cause) two (2) members of the ACC. Declarant's right to appoint two (2) members of the ACC will AUSTIN 1/699746v.3 46145-8 10/22/2013 -38- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS automatically be assigned to the Association upon the expiration of twelve (12) months after the expiration of the Development Period. The Town Manager will have the right to appoint and remove one (1) member of the ACC until the Town Manager assigns such right to the Board. Declarant and the Town Manager, jointly, may create and assign specific duties and responsibilities to one or more sub -committees consisting of members and/or nonmembers of the ACC. In the event responsibilities and duties are assigned to a sub -committee, those responsibilities and duties will no longer be discharged by the ACC unless the sub- committee exercising such duties and responsibilities is dissolved by Declarant and the Town Manager. The right to create, dissolve, and appoint members of such sub -committees will reside exclusively with Declarant and the Town Manager until such time as Declarant or the Town Manager, as applicable, assign their rights to appoint members of the ACC to the Association. The ACC will have the right to employ consultants and advisors as it deems necessary or appropriate. (b) Submission and Approval of Plans and Specifications. Construction plans and specifications or, when an Owner desires solely to re -subdivide or consolidate Lots, a proposal for such re -subdivision or consolidation, will be submitted in accordance with the Design Guidelines or any additional rules adopted by the ACC together with any review fee which is imposed by the ACC in accordance with Section 7.02(c) to the ACC, at such address as may hereafter be designated in writing from time to time. No re -subdivision or consolidation will be made, nor any Improvement placed or allowed on any Lot, until the plans and specifications thereof have been approved in writing by a Majority of the members of the ACC. The ACC may, in reviewing such plans and specifications consider any information that it deems proper; including, without limitation, any permits, environmental impact statements or percolation tests that may be required by the ACC or any other entity; and harmony of external design and location in relation to surrounding structures, topography, vegetation, and finished grade elevation. The ACC may postpone its review of any plans and specifications submitted for approval pending receipt of any information or material which the ACC, in its sole discretion, may require. Site plans must be approved by the ACC prior to the clearing of any Lot, or the construction of any Improvements. The ACC may refuse to approve plans and specifications for proposed Improvements, or for the re -subdivision or consolidation of any Lot on any grounds that, in the sole and absolute discretion of the ACC, are deemed sufficient, including, but not limited to, purely aesthetic grounds. Notwithstanding any provision to the contrary in the Declaration, the ACC may issue an approval to Homebuilders for the construction of Improvements based on the review and approval of plan types and adopt a procedure which differs from the procedures for review and approval of Improvements set forth in this Declaration. (c) Design Guidelines. Declarant may adopt the initial Design Guidelines. The Majority of the ACC, including the member of the ACC appointed by the Town AUSTIN 1/699746v.3 46145-8 10/22/2013 -39- GKANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS M 0- 11116=i Manager (unless the Town Manager has assigned its right to appoint a member of the ACC to the Association when, in such event, a Majority of the ACC) will have the power from time, to adopt (unless previously adopted by Declarant), amend, modify, or supplement the Design Guidelines. In the event of any conflict between the terms and provisions of the Design Guidelines and the terms and provisions of this Declaration, the terms and provisions of this Declaration will control. In addition, the ACC will have the power and authority to impose a fee for the review of plans, specifications and other documents and information submitted to it pursuant to the terms of this Declaration. Such charges will be held by the ACC and used to defray the administrative expenses incurred by the ACC in performing its duties hereunder; provided, however, that any excess funds held by the ACC will be distributed to the Association at the end of each calendar year. The ACC will not be required to review any plans until a complete submittal package, as required by this Declaration and the Design Guidelines, is assembled and submitted to the ACC. The ACC will have the authority to adopt such additional procedural and substantive rules and guidelines (including, without limitation, the imposition of any requirements for certificates of compliance or completion relating to any Improvement and the right to approve in advance any contractor selected for the construction of Improvements), not in conflict with this Declaration, as it may deem necessary or appropriate in connection with the performance of its duties hereunder. (d) Actions of the ACC. The ACC may, by resolution unanimously adopted in writing, designate one or more of its members, or an agent acting on its behalf, to take any action or perform any duties for and on behalf of the ACC, except the granting of variances. In the absence of such designation, the vote of a Majority of all of the members of the ACC taken at a duly constituted meeting will constitute an act of the ACC. (e) Failure to Act. In the event that any plans and specifications are submitted to the ACC as provided herein, and the ACC fails either to approve or reject such plans and specifications for a period of sixty (60) days following such submission, rejection of such plans and specifications by the ACC will be presumed. In furtherance, and not in limitation, of the foregoing, any failure of the ACC to act upon a request for a variance will not be deemed a consent to such variance, and the ACC's written approval of all requests for variances will be expressly required. (f) Variances. The ACC may grant variances from compliance with any of the provisions of the Design Guidelines or this Declaration, when, in the opinion of the ACC, in its sole and absolute discretion, such variance is justified. All variances must be evidenced in writing and must be signed by at least a Majority of the members of the ACC, including the member of the ACC appointed by the Town Manager (unless the Town Manager has assigned its right to appoint a member of the ACC to the Association when, in such event, a Majority of the ACC may approve variances). Each variance must also be Recorded; provided however, that failure to record a variance will not affect the validity AUSTIN 1/699746v.3 46145-8 10/22/2013 -40- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS M thereof or give rise to any claim or cause of action against the ACC, including the Declarant or its designee, the Town Manager or its designee, the Association, or the Board. If a variance is granted, no violation of the covenants, conditions, or restrictions contained in this Declaration or the Design Guidelines will be deemed to have occurred with respect to the matter for which the variance was granted. The granting of such variance will not operate to waive or amend any of the terms and provisions of this Declaration or the Design Guidelines for any purpose except as to the particular property and in the particular instance covered by the variance, and such variance will not be considered to establish a precedent for any future waiver, modification, or amendment of the terms and provisions of this Declaration or the Design Guidelines. (g) Duration of Approval. Unless otherwise directed by the ACC, the approval of the ACC of any plans and specifications, and any variances granted by the ACC, will be valid for a period of one hundred and eighty (180) days only. If construction in accordance with such plans and specifications or variance is not commenced within such one hundred and eighty (180) day period and diligently prosecuted to completion, the Owner will be required to resubmit such plans and specifications or request for a variance to the ACC, and the ACC will have the authority to re-evaluate such plans and specifications in accordance with this Section 7.02(g) and may, in addition, consider any change in circumstances which may have occurred since the time of the original approval. (h) No Waiver of Future Approvals. The approval of the ACC to any plans or specifications for any work done or proposed in connection with any matter requiring the approval or consent of the ACC will not be deemed to constitute a waiver of any right to withhold approval or consent as to any plans and specifications on any other matter, subsequently or additionally submitted for approval by the same or a different person, nor will such approval or consent be deemed to establish a precedent for future approvals by the ACC. (i) Non -Liability of Committee Members. NEITHER DECLARANT, THE TOWN MANAGER, THE ACC, NOR ANY PARTNER, EMPLOYEE, DIRECTOR, OFFICER, COMMITTEE MEMBER, OR AGENT WILL BE LIABLE TO ANY OWNER OR TO ANY OTHER PERSON FOR ANY LOSS, DAMAGE OR INJURY ARISING OUT OF THE PERFORMANCE OF THE ACC'S DUTIES UNDER THIS DECLARATION. ARTICLE 8 •6 U&J14wilitAll The following provisions are for the benefit of holders, insurers and guarantors of first Mortgages on Lots within the Property. The provisions of this Article apply to the Declaration and the Bylaws of the Association. -41- Gi2ANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 I;7i11.PT1i 8.01 Notice of Action. An institutional holder, insurer, or guarantor of a first Mortgage which provides a written request to the Association (such request to state the name and address of such holder, insurer, or guarantor and the street address of the Lot to which its Mortgage relates (thereby becoming an "Eligible Mortgage Holder"), will be entitled to timely written notice of: (a) Any condemnation loss or any casualty loss which affects a material portion of the Property or which affects any Lot on which there is an Eligible Mortgage held, insured, or guaranteed by such Eligible Mortgage Holder; or (b) Any delinquency in the payment of assessments or charges owed for a Lot subject to the Mortgage of such Eligible Mortgage Holder, where such delinquency has continued for a period of sixty (60) days, or any other violation of the Restrictions relating to such Lot or the Owner or Resident which is not cured within sixty (60) days; or (c) Any lapse, cancellation, or material modification of any insurance policy maintained by the Association. 8.02 Examination of Books. The Association will permit Mortgagees to examine the books and records of the Association during normal business hours. 8.03 Taxes, Assessments and Charges. All taxes, assessments and charges that may become liens prior to first lien mortgages under Applicable Law will relate only to the individual Lots and not to any other portion of the Property. ARTICLE 9 C' EVEIAL FV *VISIAWS 9.01 Term. The terms, covenants, conditions, restrictions, easements, charges, and liens set out in this Declaration will run with and bind the Property, and will inure to the benefit of and be enforceable by the Association, and every Owner, including Declarant, and their respective legal representatives, heirs, successors, and assigns, for a term beginning on the date this Declaration is Recorded, and continuing through and including January 1, 2067, after which time this Declaration will be automatically extended for successive periods of ten (10) years unless a change (the word "change" meaning a termination, or change of term or renewal term) is approved in a resolution adopted by Members entitled to cast at least sixty-seven percent (67%) of the total number of votes of the Association, voting in person or by proxy at a meeting duly called for such purpose, written notice of which will be given to all Members at least thirty (30) days in advance and will set forth the purpose of such meeting; provided, however, that such change will be effective only upon the Recording of a certified copy of such resolution. Notwithstanding any provision in this Section 9.01 to the contrary, if any provision of this Declaration would be unlawful, void, or voidable by reason of any Applicable Law restricting the period of time that covenants on land may be enforced, such provision will expire (twenty AUSTIN 1/699746v.3 46145-8 10/22/2013 -42- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ME i MP111 one) 21 years after the death of the last survivor of the now living descendants of Elizabeth II, Queen of England. 9.02 Eminent Romain. In the event it becomes necessary for any public authority to acquire all or any part of the Common Area for any public purpose during the period this Declaration is in effect, the Board is hereby authorized to negotiate with such public authority for such acquisition and to execute instruments necessary for that purpose. Should acquisitions by eminent domain become necessary, only the Board need be made a party, and in any event the proceeds received will be held by the Association for the benefit of the Owners. In the event any proceeds attributable to acquisition of Common Area are paid to Owners, such payments will be allocated on the basis of Assessment Units and paid jointly to the Owners and the holders of Mortgages or deeds of trust on the respective Lot. 9.03 Amendment. This Declaration may be amended or terminated by the Recording of an instrument executed and acknowledged by: (i) Declarant acting alone; or (ii) by the president and secretary of the Association setting forth the amendment and certifying that such amendment has been approved by Declarant (until expiration or termination of. the Development Period) and Members entitled to cast at least sixty-seven percent (67%) of the number of votes entitled to be cast by members of the Association. Notwithstanding the foregoing, any amendment which would remove the Town Manager's right to appoint and remove members of the ACC or otherwise affect the Town's rights under this Declaration must be approved by the written consent of the Town. No amendment will be effective without the written consent of Declarant, its successors or assigns, during the Development Period. Specifically, and not by way of limitation, Declarant may unilaterally amend this Declaration: (i) to bring any provision into compliance with Applicable Law; (ii) to enable any reputable title insurance company to issue title insurance coverage on any Lot; (iii) to enable any institutional or governmental lender, purchaser, insurer or guarantor of mortgage loans, including, for example, the Federal Home Loan Mortgage Corporation, to make, purchase, insure or guarantee mortgage loans on Lots; or (iv) to comply with any requirements promulgated by a local, state or governmental agency, including, for example, the Department of Housing and Urban Development. 9.04 Conceptual Plans. All master plans, site plans, brochures, illustrations, information and marketing materials relating to the Property (collectively, the "Conceptual Plans") are conceptual in nature and are intended to be used for illustrative purposes only. The land uses and Improvements reflected on the Conceptual Plans are subject to change at any time and from time to time, and it is expressly agreed and understood that land uses within the Property may include uses which are not shown on the Conceptual Plans. Neither Declarant nor any Homebuilder or other developer of any portion of the Property makes any representation or warranty concerning such land uses and Improvements shown on the Conceptual Plans or otherwise planned for the Property and it is expressly agreed and understood that no Owner will be entitled to rely upon the Conceptual Plans in making the AUSTIN 1/699746v.3 46145-8 10/22/2013 -43- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS decision to purchase any land or Improvements within the Property. Each Owner who acquires a. Lot within the Property acknowledges that development of the Property will likely extend over many years, and agrees that the Association will not engage in, or use Association funds to support, protest, challenge, or make any other form of objection to development of the Property or changes in the Conceptual Plans as they may be amended or modified from time to time. 9.05 Party Wall Fences. A fence or wall located on or near the dividing line between two (2) Lots and intended to benefit both Lots constitutes a "Party Wall" and, to the extent not inconsistent with the provisions of this Section 9.05, is subject to the general rules of law regarding party walls and liability for property damage due to negligence, willful acts, or omissions. (a) Encroachments & Easement. If the Party Wall is on one Lot due to an error in construction, the Party Wall is nevertheless deemed to be on the dividing line for purposes of this Section 9.05. Each Lot sharing a Party Wall is subject to an easement for the existence and continuance of any encroachment by the Party Wall as a result of construction, repair, shifting, settlement, or movement in any portion of the Party Wall, so that the encroachment may remain undisturbed as long as the Party Wall stands. Each Lot is subject to a reciprocal easement for the maintenance, repair, replacement, or reconstruction of the Party Wall. (b) Right to Repair. If the Party Wall is damaged or destroyed from any cause, the Owner of either Lot may repair or rebuild the Party Wall to its previous condition, and the Owners of both Lots, their successors and assigns, have the right to the full use of the repaired or rebuilt Party Wall. (c) Maintenance Costs. The Owners of the adjoining Lots share equally the costs of repair, reconstruction, or replacement of the Party Wall, subject to the right of one Owner to call for larger contribution from the other under any rule of law regarding liability for negligence or willful acts or omissions. If an Owner is responsible for damage to or destruction of the Party Wall, that Owner will bear the entire cost of repair, reconstruction, or replacement. If an Owner fails or refuses to pay his share of costs of repair or replacement of the Party Wall, the Owner advancing monies has a right to file a claim of lien for the monies advanced in the Official Public Records of Tarrant County, Texas, and has the right to foreclose the lien as if it were a mechanic's lien. The right of an Owner to require contribution from another Owner under this Section 9.05 is appurtenant to the Lot and passes to the Owner's successors in title. (d) Alterations. The Owner of a Lot sharing a Party Wall may not cut openings in the Party Wall or alter or change the Party Wall in any manner that affects the use, condition, or appearance of the Party Wall to the adjoining Lot. The Party Wall will always remain in the same location as when erected unless otherwise approved by the Owner of each Lot sharing the Party Wall and the ACC. AUSTIN 1/699746v.3 46145-8 10/22/2013 -44- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AL3 9.06 Enforcement. The Association and the Declarant will have the right to enforce, by a proceeding at law or in equity, the Restrictions. Failure to enforce any right, provision, covenant, or condition set forth in the Restrictions will not constitute a waiver of the right to enforce such right, provision, covenants or condition in the future. 9.07 Higher Authority_. The terms and provisions of this Declaration are subordinate to Applicable Law. Generally, the terms and provisions of this Declaration are enforceable to the extent they do not violate or conflict with Applicable Law. 9.08 Severability. If any provision of this Declaration is held to be invalid by any court of competent jurisdiction, such invalidity will not affect the validity of any other provision of this Declaration, or, to the extent permitted by Applicable Law, the validity of such provision as applied to any other person or entity. 9.09 Conflicts. If there is any conflict between the provisions of this Declaration, the Certificate, the Bylaws, or any Rules adopted pursuant to the terms of such documents, the provisions of this Declaration, the Certificate, the Bylaws, and the Rules, in such order, will govern. 9.10 Gender. Whenever the context so requires, all words herein in the male gender will be deemed to include the female or neuter gender, all singular words will include the plural, and all plural words will include the singular. 9.11 Acceptance by Grantees. Each grantee of Declarant of a Lot or other real property interest in the Property, by the acceptance of a deed of conveyance, or each subsequent purchaser, accepts the same subject to all terms, restrictions, conditions, covenants, reservations, easements, liens and charges, and the jurisdiction rights and powers created or reserved by this Declaration or to whom this Declaration is subject, and all rights, benefits and privileges of every character hereby granted, created, reserved or declared. Furthermore, each grantee agrees that no assignee or successor to Declarant hereunder will have any liability for any act or omission of Declarant which occurred prior to the effective date of any such succession or assignment. All impositions and obligations hereby imposed will constitute covenants running with the land within the Property, and will bind any person having at any time any interest or estate in the Property, and will inure to the benefit of each Owner in like manner as though the provisions of this Declaration were recited and stipulated at length in each and every deed of conveyance. -45- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 10 111?f1-i 9.12 Damaee and Destruction. (a) Claims. Promptly after damage or destruction by fire or other casualty to all or any part of the Common Area covered by insurance, the Board, or its duly authorized agent, will proceed with the filing and adjustment of all claims arising under such insurance and obtain reliable and detailed estimates of the cost of repair of the damage. Repair, as used in this Section 9.11(a), means repairing or restoring the Common Area to substantially the same condition as existed prior to the fire or other casualty. (b) Repair Obligations. Any damage to or destruction of the Common Area will be repaired unless a Majority of the Board decides within sixty (60) days after the casualty not to repair. If for any reason either the amount of the insurance proceeds to be paid as a result of such damage or destruction, or reliable and detailed estimates of the cost of repair, or both, are not made available to the Association within said period, then the period will be extended until such information will be made available. (c) Restoration. In the event that it should be determined by the Board that the damage or destruction of the Common Area will not be repaired and no alternative Improvements are authorized, then the affected portion of the Common Area will be restored to its natural state and maintained as an undeveloped portion of the Common Area by the Association in a neat and attractive condition. (d) Special Assessment. If insurance proceeds are paid to restore or repair any damaged or destroyed Common Area, and such proceeds are not sufficient to defray the cost of such repair or restoration, the Board will levy a Special Assessment, as provided in Article 6, against all Owners. Additional Assessments may be made in like manner at any time during or following the completion of any repair. (e) Proceeds Payable to Owners. In the event that any proceeds of insurance policies are paid to Owners as a result of any damage or destruction to any Common Area, such payments will be allocated based on Assessment Units and paid jointly to the Owners and the holders of Mortgages or deeds of trust on their Lots. 9.13 No Partition. Except as may be permitted in this Declaration or amendments thereto, no physical partition of the Common Area or any part will be permitted, nor will any person acquiring any interest in the Property or any part seek any such judicial partition unless the Property in question has been removed from the provisions of this Declaration pursuant to Section 11.04 below. This Section 9.13 will not be construed to prohibit the Board from acquiring and disposing of tangible personal property or from acquiring title to real property that may or may not be subject to this Declaration. 9.14 Notices. Any notice permitted or required to be given to any person by this Declaration will be in writing and may be delivered either personally or by mail, or as -46- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _1 /699746v.3 46145-8 10/22/2013 otherwise required by Applicable Law. If delivery is made by mail, it will be deemed to have been delivered on the third (3rd) day (other than a Sunday or legal holiday) after a copy of the same has been deposited in the United States mail, postage prepaid, addressed to the person at the address given by such person to the Association for the purpose of service of notices. Such address may be changed from time to time by notice in writing given by such person to the Association. 9.15 View Impairment. Neither Declarant nor the Association guarantee or represent that any view over and across the Lots, or any open space or Common Area within the Property will be preserved without impairment. Neither. the Declarant, the ACC, and the Association shall have no obligation to relocate, prune, or thin trees or other landscaping. The Association (with respect to any Common Area) will have the right to add trees and other landscaping from time to time, subject to Applicable Law. There shall be no express or implied easements for view purposes or for the passage of light and air. 9.16 Safety and Security. Each Owner and Resident of a Lot, and their respective guests and invitees, shall be responsible for their own personal safety and the security of their property within the Property. The Association may, but shall not be obligated to, maintain or support certain activities within the Property designed to promote or enhance the level of safety or security which each person provides for himself or herself and his or her property. However, neither the Association nor Declarant shall in any way be considered insurers or guarantors of safety or security within the Property, nor shall either be held liable for any loss or damage by reason of failure to provide adequate securiq or ineffectiveness of security measures undertaken. ARTICLE 10 EASEMENTS 10.01 Right of Ingress and Egress. Declarant, its agents, employees and designees will have a right of ingress and egress over and the right of access to the Common Area to the extent necessary to use the Common Area and the right to such other temporary uses of the Common Area as may be required or reasonably desirable (as determined by Declarant in its sole discretion) in connection with the construction and development of the Property. The Property shall be subject to a perpetual non-exclusive easement for the installation and maintenance, including the right to read meters, service or repair lines and equipment, and to do everything and anything necessary to properly maintain and furnish the Community Systems and the facilities pertinent and necessary to the same, which easement shall run in favor of Declarant. Declarant shall have the right, but not the obligation, to install and provide the Community Systems and to provide the services available through the Community Systems to any and all Lots within the Property. Neither the Association nor any Owner shall have any interest therein. Any or all of such services may be provided either directly through the Association and paid for as part of the Assessments or directly to Declarant, any affiliate of Declarant, or a third party, by the Owner who receives the services. The Community Systems shall be the -47- AUSTIN 1/699746v.3 46145-8 10/22/2013 GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS Exhibit property of Declarant unless transferred by Declarant, whereupon any proceeds of such transfer shall belong to Declarant. Declarant shall have the right but not the obligation to convey, transfer, sell or assign all or any portion of the Community Systems or all or any portion of the rights, duties or obligations with respect thereto, to the Association or to any Person. The rights of. Declarant with respect to the Community Systems installed by Declarant and the services provided through such Community Systems are exclusive, and no other Person may provide such services through the Community Systems installed by Declarant without the prior written consent of Declarant. In recognition of the fact that interruptions in Community Systems services will occur from time to time, no person or entity described above shall in any manner be liable, and no user of any Community System shall be entitled to any refund, rebate, discount or offset in applicable fees, for any interruption in Community Systems services, regardless of whether or not same is caused by reasons within the control of the then -provider of such services. 10.02 Reserved Easements. All dedications, limitations, restrictions and reservations shown on any Plat and all grants and dedications of easements, rights-of-way, restrictions and related rights made by Declarant prior to the Property becoming subject to this Declaration are incorporated herein by reference and made a part of this Declaration for all purposes as if fully set forth herein, and will be construed as being adopted in each and every contract, deed or conveyance executed or to be executed by or on behalf of Declarant. Declarant reserves the right to relocate, make changes in, and additions to said easements, rights-of-way, dedications, limitations, reservations and grants for the purpose of most efficiently and economically developing the Property. 10.03 Utility Easements. Declarant hereby reserves unto itself and Declarant's successors and assigns a perpetual non-exclusive easement over and across the Property for: (i) the installation, operation and maintenance of utilities and associated infrastructure to serve the Property and any other property owned by Declarant; (ii) the installation, operation and maintenance of cable lines and associated infrastructure for sending and receiving data and/or other electronic signals, security and similar services to serve the Property and any other property owned by Declarant; and (iii) the installation, operation and maintenance of, roadways, gates, walkways, pathways and trails, drainage systems, street lights and signage to serve the Property and any other property owned by Declarant. Declarant will be entitled to unilaterally assign the easements reserved hereunder to any third party who owns, operates or maintains the facilities and Improvements described in (i) through (iii) of this Section 10.03. The exercise of the easement reserved herein will not extend to permitting entry into any residence, nor will it unreasonably interfere with the use of any Lot or residence or Improvement constructed thereon. 10.04 Roadway_ and Utility Easements. Declarant reserves the right to create, locate, relocate, construct, erect, and maintain or cause to be created, located, relocated, constructed, erected, and maintained in and on any portion of the Property then owned by Declarant or any -48- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 11699746v.3 46145-8 10/22/2013 Resolution 13-33 streets maintained by the Association, or areas conveyed to the Association, or areas reserved or held as Common Area, roadways, sewer lines, water lines, electrical lines and conduits, and other pipelines, conduits, wires, and any public utility function beneath or above the surface of the ground with the right of access to the same at any time for the purposes of repair and maintenance. 10.05 Subdivision Entry and Fencing Easement. Declarant reserves for itself and the Association, an easement over and across the Property for the installation, maintenance, repair or replacement of certain subdivision entry facilities and fencing which serves the Property. Declarant will have the right, from time to time, to Record a written notice which identifies the subdivision entry facilities fencing to which the easement reserved hereunder applies. Declarant may designate all or any portion of the subdivision entry facilities and/or fencing as Common Area by Recorded written notice. The exercise of the easements reserved hereunder will not extend to permitting entry into any residence, nor will it unreasonably interfere with the use of any Lot or residence or Improvement constructed thereon. 10.06 Landscape, Monumentation and Signage Easement. Declarant hereby reserves an easement over and across the Property for the installation, maintenance, repair or replacement of landscaping, monumentation and signage which serve the Property and any other property owned by Declarant. Declarant will have the right, from time to time, to Record a written notice which identifies the landscaping, monumentation, or signage to which the easement reserved hereunder applies. Declarant may designate all or any portion of the landscaping, monumentation, or signage easement as Common Area. 10.07 Declarant as Attorney in Fact. To secure and facilitate Declarant's exercise of the rights reserved by Declarant pursuant to the terms and provisions of this Declaration, each Owner, by accepting a deed to a Lot and each Mortgagee, by accepting the benefits of a Mortgage against a Lot, and any other third party by acceptance of the benefits of a mortgage, deed of trust, mechanic's lien contract, mechanic's lien claim, vendor's lien and/or any other security interest against any Lot, will thereby be deemed to have appointed Declarant such Owner's, Mortgagee's, and third party's irrevocable attorney-in-fact, with full power of substitution, to do and perform, each and every act permitted or required to be performed by Declarant pursuant to the terms of this Declaration. The power thereby vested in Declarant as attorney-in-fact for each Owner, Mortgagee and/or third party, will be deemed, conclusively, to be coupled with an interest and will survive the dissolution, termination, insolvency, bankruptcy, incompetency and death of an Owner, Mortgagee and/or third party and will be binding upon the legal representatives, administrators, executors, successors, heirs and assigns of each such party. The aforesaid power shall be vested in Declarant, its successors and assigns, for a period of twenty-five (25) years from the date the first Lot is conveyed to an individual purchaser, or until the expiration or termination of the Development Period, whichever occurs first. Declarant hereby reserves for itself, its successors and assigns the right to execute on behalf of each Owner, Mortgagee, and third party claiming a legal or equitable interest in the AUSTIN 1/699746v.3 46145-8 10/22/2013 -49- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS W Common Area, any such agreements, documents, amendments or supplements to the Restrictions which may be required by any institutional or governmental lender, purchaser, insurer or guarantor of mortgage loans (including, for example, the Federal Home Loan Mortgage Corporation) designated by Declarant or by any governmental or quasi -governmental agency having regulatory jurisdiction over the Common Area or by any title insurance company selected by Declarant to insure title to any portion of the Common Area. ARTICLE 11 DEVELOPMENT RIGHTS 11.01 Development by Declarant. It is contemplated that the Property will be developed pursuant to a plan, which may, from time to time, be amended or modified. Declarant reserves the right, but will not be obligated, to create and/or designate Lots and Common Areas and to subdivide with respect to any of the Property pursuant to the terms of this Section 11.01, subject to any limitations imposed on portions of the Property by any applicable Plat. These rights may be exercised with respect to any portions of the Property. As each area is developed or dedicated, Declarant may designate the use, classification and such additional covenants, conditions and restrictions as Declarant may deem appropriate for that area. 11.02 Special Declarant Rights. Notwithstanding any provision of this Declaration to the contrary, at all times, Declarant will have the right and privilege: (i) to erect and maintain advertising signs (illuminated or non -illuminated), sales flags, other sales devices and banners for the purpose of aiding the sale of Lots in the Property; (ii) to maintain Improvements upon Lots as sales, model, management, business and construction offices; and (iii) to maintain and locate construction trailers and construction tools and equipment within the Property. The construction, placement or maintenance of Improvements by Declarant will not be considered a nuisance, and Declarant hereby reserves the right and privilege for itself to conduct the activities enumerated in this Section 11.02 until two (2) years after expiration or termination of the Development Period. 11.03 Addition of Land. Declarant may, at any time and from time to time, add additional lands to the Property. Upon the filing of a notice of addition of land, such land will be considered part of the Property for purposes of this Declaration, and such added lands will be considered part of the Property subject to this Declaration and the terms, covenants, conditions, restrictions and obligations set forth in this Declaration, and the rights, privileges, duties and liabilities of the persons subject to this Declaration will be the same with respect to such added land as with respect to the lands originally covered by this Declaration. To add lands to the Property, Declarant will be required only to Record a notice of addition of land containing the following provisions: -50- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 (a) A reference to this Declaration, which reference will state the document number or volume and initial page number of the Official Public Records of Tarrant County wherein this Declaration is Recorded; (b) A statement that such land will be considered Property for purposes of this Declaration, and that all of the terms, covenants, conditions, restrictions and obligations of this Declaration will apply to the added land; and (c) A legal description of the added land. 11.04 Withdrawal of Land. Declarant may, at any time and from time to time, reduce or withdraw from the Property, and remove and exclude from the burden of this Declaration and the jurisdiction of the Association any portion of the Property. Upon any such withdrawal and renewal this Declaration and the covenants conditions, restrictions and obligations set forth herein will no longer apply to the portion of the Property withdrawn. To withdraw lands from the Property hereunder, Declarant will be required only to Record a notice of withdrawal of land containing the following provisions: (a) A reference to this Declaration, which reference will state the document number or volume and initial page number of the Official Public Records of Tarrant County wherein this Declaration is recorded; (b) A statement that the provisions of this Declaration will no longer apply to the withdrawn land; and (c) A legal description of the withdrawn land. 11.05 AssiEmment of Declarant's Rights. Notwithstanding any provision in this Declaration to the contrary, Declarant may, by written instrument, assign, in whole or in part, any of its privileges, exemptions, rights and duties under this Declaration to any person or entity and may permit the participation, in whole, in part, exclusively, or non -exclusively, by any other person or entity in any of its privileges, exemptions, rights and duties hereunder. AUSTIN 1/699746v.3 46145-8 10/22/2013 [SIGNATURE PAGE FOLLOWS] -51- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS Exhibit B EXECUTED to be effective on the date this instrument is Recorded. DECLARANT: MAGUIRE PARTNERS - SOLANA LAND, L.P., a Texas limited partnership By: Printed Name: Title: THE STATE OF TEXAS § COUNTY OF § This instrument was acknowledged before me on this day of 2013, by _ of MAGUIRE PARTNERS - SOLANA LAND, L.P., a Texas limited partnership, on behalf of said limited partnership. (seal) Notary Public, State of Texas -52- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Resolution 13-33 Page 1 of 57 Recorded by Tarrant County Clerk in Official Public Records - rq Pu*Q1 �cc+ c<<a, Mary Louise Garcia After Recording Return To: Robert D. Burton Winstead, PC 401 Congress Ave., Suite 2100 Austin, Texas 78701 email: rburton@winstead.com DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS GRANADA [TARRANT COUNTY, TEXAS] Declarant: MAGUIRE PARTNERS — SOLANA LAND, L.P., a Texas limited partnership This Declaration of Covenants, Conditions and Restrictions may be used only in connection with the residential community known as Granada in Tarrant County, Texas and the operation of the Granada Residential Community, Inc. AUSTIN -1/699746v.3 46145-8 10/22/2013 Page 2 of 57 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ARTICLE 3 CONSTRUCTION RESTRICTIONS.. ....................... ........................... ...................... 17 i GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699946v.3 46145-8 10/22/2013 GRANADA TABLE OF CONTENTS ARTICLE 1 DEFINITIONS..................................................................................................................1 ARTICLE 2 USE RESTRICTIONS.......................................................................................................5 2.01 General..............................................................................................................................5 2.02 Single -Family Residential Use....................................................................................... 6 2.03 Rentals............................................................................................................................... 7 2.04 Subdividing.......................................................................................................................8 2.05 Hazardous Activities.. .......................................................................................... .......... 8 2.06 Insurance Rates................................................................................................................ 8 2.07 Mining and Drilling.........................................................................................................8 2.08 Water Bodies.....................................................................................................................8 2.09 Noise..................................................................................................................................9 2.10 Animals - Household Pets.. .............. ................................. ........................................... 9 2.11 Rubbish and Debris.........................................................................................................9 2.12 Trash Containers............................................................................................................10 2.13 Maintenance....................................................................................................................10 2.14 Street Landscape Area -Owner's Obligation to Maintain Landscaping .................10 2.15 Antennas.........................................................................................................................11 2.16 Location of Permitted Antennas..................................................................................11 2.17 Signs.................................................................................................................................12 2.18 Flags - Approval Requirements..................................................................................12 2.19 Flags - Installation and Display...................................................................................13 2.20 Tanks................................................................................................................................14 2.21 Temporary Structures....................................................................................................14 2.22 Unsightly Articles; Vehicles.........................................................................................14 2.23 On Street Parking...........................................................................................................15 2.24 Basketball Goals; Permanent and Portable.................................................................15 2.25 No Tennis or Recreational Courts; Playscapes..........................................................15 2.26 Decorations and Lighting.............................................................................................15 2.27 Clotheslines; Window Air Conditioners....................................................................15 2.28 Dumping.........................................................................................................................15 2.29 Compliance with Restrictions......................................................................................16 2.30 Liability of Owners for Damage to Common Area...................................................16 2.31 No Warranty of Enforceability.....................................................................................17 2.32 Restriction on Use of Common Area...........................................................................17 2.33 Declarant and Homebuilder Exemption....................................................................17 ARTICLE 3 CONSTRUCTION RESTRICTIONS.. ....................... ........................... ...................... 17 i GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699946v.3 46145-8 10/22/2013 Page 3 of 57 3.01 Approval for Construction...........................................................................................17 3.02 Masonry Requirements.................................................................................................17 3.03 Minimum Square Footage............................................................................................17 3.04 Garages............................................................................................................................17 3.05 Fences; Sidewalks...........................................................................................................17 3.06 Building Restrictions.....................................................................................................18 3.07 Alteration or Removal of Improvements....................................................................18 3.08 Drainage..........................................................................................................................18 3.09 Construction Activities..................................................................................................18 3.10 Roofing............................................................................................................................18 3.11 Swimming Pools............................................................................................................19 3.12 Solar Energy Device.......................................................................................................19 3.13 Rainwater Harvesting Systems....................................................................................20 ARTICLE 4 GRANADA RESIDENTIAL COMMUNITY, INC .................................................... 21 4.01 Organization................................................................................................................... 21 4.02 Membership....................................................................................................................21 4.03 Governance.....................................................................................................................22 4.04 Voting Rights..................................................................................................................23 4.05 Powers............................................................................................................................. 23 4.06 Acceptance of Common Area.......................................................................................26 4.07 Indemnification.............................................................................................................. 27 4.08 Insurance......................................................................................................................... 27 4.09 Bulk Rate Contracts....................................................................................................... 27 4.10 Community Systems..................................................................................................... 28 4.11 Declarants Right to Contribute to Revenues of the Association ............................28 4.12 Protection of Declarant's Interests...............................................................................28 4.13 Administration of Common Area................................................................................ 29 4.14 Private Streets.................................................................................................................29 4.15 Notices and Disclaimers as to Security Systems........................................................29 ARTICLE5 INSURANCE..................................................................................................................30 5.01 Insurance......................................................................................................................... 30 5.02 Restoration......................................................................................................................30 5.03 Mechanic's and Materialmeri s Lien............................................................................ 31 ARTICLE 6 COVENANT FOR ASSESSMENTS.............................................................................31 6.01 Assessments....................................................................................................................31 6.02 Maintenance Fund......................................................................................................... 32 6.03 Regular Assessments.....................................................................................................32 6.04 Working Capital Assessment.......................................................................................32 6.05 Amenity Reimbursement Fee....................................................................................... 33 6.06 Special Assessments...................................................................................................... 33 6.07 Individual Assessments................................................................................................33 ii GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _1/699746v.3 46145-8 10/22/2013 Page 4 of 57 6.08 Amount of Assessment................................................................................................. 34 6.09 Late Charges...................................................................................................................34 6.10 Owner's Personal Obligation; Interest........................................................................34 6.11 Assessment Lien and Foreclosure............................................................................... 35 6.12 Exempt Property............................................................................................................ 36 6.13 Fines and Damages Assessment..................................................................................37 ARTICLE 7 ARCHITECTURAL CONTROL COMMITTEE.........................................................38 7.01 Construction of Improvements....................................................................................38 7.02 Architectural Control Committee................................................................................38 ARTICLE 8 MORTGAGE PROVISIONS......................................................................................... 41 8.01 Notice of Action............................................................................................................. 42 8.02 Examination of Books.................................................................................................... 42 8.03 Taxes, Assessments and Charges................................................................................ 42 ARTICLE 9 GENERAL PROVISIONS.............................................................................................. 42 9.01 Term.................................................................................................................................42 9.02 Eminent Domain............................................................................................................43 9.03 Amendment....................................................................................................................43 9.04 Conceptual Plans............................................................................................................ 43 9.05 Party Wall Fences...........................................................................................................44 9.06 Enforcement....................................................................................................................45 9.07 Higher Authority........................................................................................................... 45 9.08 Severability..................................................................................................................... 45 9.09 Conflicts...........................................................................................................................45 9.10 Gender.............................................................................................................................45 9.11 Acceptance by Grantees................................................................................................ 45 9.12 Damage and Destruction.............................................................................................. 46 9.13 No Partition.................................................................................................................... 46 9.14 Notices.............................................................................................................................46 9.15 View Impairment...........................................................................................................47 9.16 Safety and Security........................................................................................................47 ARTICLE 10 EASEMENTS..................................................................................................................47 10.01 Right of Ingress and Egress..........................................................................................47 10.02 Reserved Easements......................................................................................................48 10.03 Utility Easements........................................................................................................... 48 10.04 Roadway and Utility Easements..................................................................................48 10.05 Subdivision Entry and Fencing Easement..................................................................49 10.06 Landscape, Monumentation and Signage Easement..............................................49 10.07 Declarant as Attorney in Fact....................................................................................... 49 ARTICLE 11 DEVELOPMENT RIGHTS............................................................................................50 11.01 Development by Declarant...........................................................................................50 11.02 Special Declarant Rights...............................................................................................50 iii GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN- 1/699746v.3 46145-8 10/22/2013 Page 5 of 57 11.03 Addition of Land............................................................................................................ 50 11.04 Withdrawal of Land...................................................................................................... 51 11.05 Assignment of Declarants Rights............................................................................... 51 iv GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 6 of 57 DECLARATION OF COVENANTS CONDITIONS AND RESTRICTIONS GRANADA This Declaration of Covenants, Conditions and Restrictions (the "Declaration') is made by MAGUIRE PARTNERS — SOLANA LAND, L.P., a Texas limited partnership (the "Declarant"), and is as follows: RECITALS: A. This Declaration is filed with respect to Lots 1 through 84, inclusive, Granada, a subdivision in Tarrant County Texas, according to the plat recorded under Document No. DZ -1 aS='; 504 , Official Public Records of Tarrant County, Texas (the "Property"). Declarant is the owner of the Property. B. Declarant desires to create and carry out a uniform plan for the development, improvement, and sale of the Property. C. By the filing of this Declaration, Declarant serves notice that the Property will be subjected to the terms and provisions of this Declaration. NOW, THEREFORE, it is hereby declared: (i) that the Property (or any portion thereof) will be held sold, conveyed, and occupied subject to the following covenants, conditions and restrictions which will run with such portions of the Property and will be binding upon all parties having right, title, or interest in or to such portions of the Property or any part thereof, their heirs, successors, and assigns and will inure to the benefit of each owner thereof; and (ii) that each contract or deed conveying the Property (or any portion thereof) will conclusively be held to have been executed, delivered, and accepted subject to the following covenants, conditions and restrictions, regardless of whether or not the same are set out in full or by reference in said contract or deed. This Declaration uses notes (text set apart in boxes) to illustrate concepts and assist the reader. If there is a conflict between any note and the text of the Declaration, the text will control. ARTICLE 1 DEFINITIONS Unless the context otherwise specifies or requires, the following words and phrases when used in this Declaration will have the meanings hereinafter specified: "Applicable Law" means the statutes and public laws and ordinances in effect at the time a provision of the Restrictions is applied, and pertaining to the subject matter of the Restriction provision. Statutes and ordinances specifically referenced in the Restrictions are -1- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 7 of 57 "Applicable Law" on the date of the Restrictions, and are not intended to apply to the Property if they cease to be applicable by operation of law, or if they are replaced or superseded by one or more other statutes or ordinances. "Architectural Control Committee" or "ACC" means the committee created pursuant to this Declaration to review and approve or deny plans for the construction, placement, modification, alteration or remodeling of any Improvements on a Lot. "Assessment" or "Assessments" means assessments imposed by the Association under this Declaration. "Assessment Unit" has the meaning set forth in Section 6.08(b). "Association" means the Granada Residential Community, Inc., a Texas non-profit corporation, which will be created by Declarant to exercise the authority and assume the powers specified in Article 4 and elsewhere in this Declaration. "Board" means the Board of Directors of the Association. "Bulk Rate Contract" or "Bulk Rate Contracts" means one or more contracts which are entered into by the Association for the provision of utility services or other services of any kind or nature to the Lots. The services provided under Bulk Rate Contracts may include, without limitation, cable television services, telecommunications services, internet access services, "broadband" services, security services, trash pick up services, propane service, natural gas service, lawn maintenance services, wastewater services, and any other services of any kind or nature which are considered by the Board to be beneficial to all or a portion of the Property. "Bylaws" means the Bylaws of the Association as adopted and as amended from time to time by a Majority of the Board. "Certificate" means the Certificate of Formation of the Association, filed in the Office of the Secretary of State of Texas, as the same may be amended from time to time. "Common Area" means any property and facilities that the Association owns or in which it otherwise holds rights or obligations, including any property or facilities held by the Declarant for the benefit of the Association or its Members. Common Area includes any property that the Association holds under a lease, license, or any easement in favor of the Association. Some Common Area will be solely for the common use and enjoyment of the Owners, while other portions of the Common Area may be for the use and enjoyment of the Owners and members of the public. Common Area specifically includes all land designated as Common Area on a Plat of the Property. "Community Manual" means the community manual, which may be initially adopted and recorded by the Declarant as part of the initial project documentation for the benefit of the -2- GRANADA DECLARATION Or COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 8 of 57 Association and the Property. The Community Manual may include the Bylaws, Rules and other policies governing the Association. The Community Manual may be amended, from time to time, by a Majority of the Board with Declarant's written consent during the Development Period. Upon expiration or termination of the Development Period, the Community Manual may be amended by a Majority of the Board. "Community ystems" means any and all cable television, telecommunications, alarm/monitoring, internet, telephone or other lines, conduits, wires, amplifiers, towers, antennae, satellite dishes, equipment, materials and installations and fixtures (including those based on, containing and serving future technological advances not now known), if installed by Declarant pursuant to any grant of easement or authority by Declarant within the Property. "Declarant" means MAGUIRE PARTNERS — SOLANA LAND, L.P., a Texas limited partnership, its successors or assigns; provided that any assignment(s) of the rights of MAGUIRE PARTNERS — SOLANA LAND, L.P., a Texas limited partnership, as Declarant, must be expressly set forth in writing and Recorded. Declarant enjoys special rights and privileges to help protect its investment in the Property which are described in this Declaration. Many of these rights do not terminate until either Declarant: (i) has conveyed all Lots which may be created out of the Property; or (ii) voluntarily terminates these rights by a Recorded written instrument. "Design Guidelines" means the standards for design, construction, landscaping, and exterior items adopted pursuant to Section 7.02(c), as the same may be amended from time to time. The Design Guidelines may consist of multiple written design guidelines applying to specific portions of the Property. Declarant may adopt the initial Design Guidelines. Notwithstanding anything in this Declaration to the contrary, Declarant will have no obligation to establish Design Guidelines. "Development Period" means the period of time beginning on the date when this Declaration has been Recorded, and ending at such time as Declarant no longer owns any portion of the Property, unless earlier terminated by Declarant. Declarant may terminate the Development Period by an instrument executed by Declarant and Recorded. The Development Period is the period in which Declarant reserves the right to facilitate the development, construction, and marketing of the Property, and the right to direct the size, shape and composition of the Property. "Homebuilder" means an Owner (other than the Declarant) who acquires a Lot for the construction of a single family residence for resale to a third party. "Improvement" means every structure and all appurtenances of every type and kind, whether temporary or permanent in nature, including, but not limited to, buildings, outbuildings, storage sheds, patios, tennis courts, sport courts, recreational facilities, swimming -3- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 9 of 57 pools, putting greens, garages, driveways, parking areas and/or facilities, storage buildings, sidewalks, fences, gates, screening walls, retaining walls, stairs, patios, decks, walkways, landscaping, mailboxes, poles, signs, antennae, exterior air conditioning equipment or fixtures, exterior lighting fixtures, water softener fixtures or equipment, and poles, pumps, wells, tanks, reservoirs, pipes, lines, meters, antennas, towers and other facilities used in connection with water, sewer, gas, electric, telephone, regular or cable television, or other utilities. "Lot" means any portion of the Property designated by Declarant or as shown as a subdivided Lot on a Plat other than Common Area. "Ma'ori " means more than half. "Manager" has the meaning set forth in Section 4.05(h). "Members" means every person or entity that holds membership privileges in the Association. "Mortgage" or "Mortgages" means any mortgage(s) or deed(s) of trust securing indebtedness and covering any Lot. "Mortgagee" or "Mortgagees' means the holder(s) of any Mortgage(s). "Owner" means the person(s), entity or entities, including Declarant, holding all or a portion of the fee simple interest in any Lot, but does not include the Mortgagee under a Mortgage prior to its acquisition of fee simple interest in such Lot pursuant to foreclosure of the lien of its Mortgage. "Plat" means a Recorded subdivision plat of any portion of the Property and any amendments thereto. "Private Streets" means Lot _ Block _ within the Subdivision and consists of private roadways, known as . The Private Streets shall be used for vehicular and pedestrian ingress and egress to and from the Lots and are designated hereby as Common Area. "Property" means Lots 1 through 84, inclusive, Granada, a subdivision in Tarrant County Texas, according to the plat Recorded under Document No.T-�1ZISGd3561, subject to such additions thereto and deletions therefrom as may be made pursuant to Section 11.03 and Section 11.04 of this Declaration. "Record. Recording Recordation and Recorded" means recorded or to be recorded in the Official Public Records of Tarrant County, Texas. "Resident" means an occupant of a Lot, regardless of whether the person owns the Lot. -4- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _1/699746v.3 46145-8 10/22/2013 Page 10 of 57 'Restrictions' means the restrictions, covenants, and conditions contained in this Declaration, the Design Guidelines, Bylaws, Community Manual, Rules or policies promulgated by the Board and amended from time to time. See Table 1 for a summary of the Restrictions. "Rules" means any instrument, however denominated, which is adopted by the Board for the regulation and management of the Property, including any amendments to those instruments. "Solar Energy Device" means a system or series of mechanisms designed primarily to provide heating or cooling or to produce electrical or mechanical power by collecting and transferring solar -generated energy. The term includes a mechanical or chemical device that has the ability to store solar -generated energy for use in heating or cooling or in the production of power. "Town" means the Town of Westlake, Texas. "Town Manager" means the Town Manager of the Town of Westlake, Texas or his/her designee. ARTICLE 2 USE RESTRICTIONS All of the Property shall be owned, held, encumbered, leased, used, occupied, and enjoyed subject to the following limitations and restrictions: 2.01 General. -5- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN_1/699746v.3 46145-8 10/22/2013 TABLE 1: RESTRICTIONS Declaration (Recorded) This document and any amendments thereto. Certificate of Formation (Recorded) Establishes the Association as a Texas nonprofit corporation. Bylaws (Recorded) Governs the Association's internal affairs, such as elections, meetings, etc. Community Manual (Recorded) Establishes rules and policies governing the Association. Design Guidelines (if adopted, Governs the design and architectural standards for the Recorded) construction of Improvements and modifications thereto. Aides (if adopted, Recorded) Regulates the use of property, activities, and conduct within the Property. Board Resolutions (adopted by the Board Establishes rules, policies, and procedures for the Property, of the Association) Owners and the Association. Page 11 of 57 (a) Conditions and Restrictions. All Lots within the Property will be owned, held, encumbered, leased, used, occupied and enjoyed subject to the Restrictions. NOTICE The Restrictions are subject to change from time to time. By owning or occupying a Lot, you agree to remain in compliance with the Restrictions, as they may change from time to time. (b) Ordinances. Ordinances and requirements imposed by local governmental authorities are applicable to all Lots within the Property. Compliance with the Restrictions is not a substitute for compliance with such ordinances and regulations. Please be advised that the Restrictions do not purport to list or describe each ordinance or regulation which may be applicable to a Lot located within the Property. Each Owner is advised to review all ordinances, requirements, regulations and encumbrances affecting the use and improvement of their Lot prior to submitting plans to the ACC for approval. Furthermore, approval by the ACC should not be construed by the Owner that any Improvement complies with the terms and provisions of any ordinances, requirements, regulations or encumbrances which may affect the Owner's Lot. Certain encumbrances may benefit parties whose interests are not addressed by the ACC. 2.02 Single -Family Residential Use. The Lots may be used solely for private single- family residential purposes and there will not be constructed or maintained thereon more than one detached single family residence. No professional, business, or commercial activity to which the general public is invited may be conducted on any Lot, except an Owner or Resident may conduct business activities within a residence so long as: (i) the existence or operation of the business activity is not apparent or detectable by sight, sound, or smell from outside the residence; (ii) the business activity conforms to all zoning requirements for the Property; (iii) the business activity does not involve door-to-door solicitation of residents within the Property; (iv) the business does not, in the Board's judgment, generate a level of vehicular or pedestrian traffic or a number of vehicles parked within the Property which is noticeably greater than that which is typical of residences in which no business activity is being conducted; and (v) the business activity is consistent with the residential character of the Property and does not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of other Residents of the Property as may be determined in the sole discretion of the Board. The terms "business' and "trade", as used in this provision, will be construed to have their ordinary, generally accepted meanings and will 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: (x) such activity is engaged in full or part-time; (y) such activity is intended to or does generate a profit; or (z) a license is required. Leasing of a residence is not considered a business or trade within the meaning of this subsection. This subsection will apply to any activity conducted by the Declarant or a Homebuilder. -6- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 12 of 57 Notwithstanding any provision in this Declaration to the contrary, until the earlier to occur of expiration or termination of the Development Period, or forty (40) years from the date this Declaration is Recorded: (i) Declarant and/or its licensees may construct and maintain upon portions of the Common Area and any Lot owned by the Declarant such facilities and may conduct such activities which, in Declarant's sole opinion, may be reasonably required, convenient, or incidental to the construction or sale of single family residences constructed upon the Lots, including, but not limited to, business offices, signs, model homes, and sales offices. Declarant and/or its licensees have an easement over and across the Common Area for access and use of such facilities at no charge; and (ii) Declarant and/or its licensees will have an access easement over and across the Common Area for the purpose of making, constructing and installing Improvements upon the Common Area. 2.03 Rentals. Nothing in this Declaration will prevent the rental of any Lot and the Improvements thereon by the Owner thereof for residential purposes; provided that: (i) all rentals must be for terms of at least six (6) months; and (ii) no portion of a Lot (other than the entire Lot) may be rented. All leases shall be in writing, and the Board will have the authority to approve all leases in advance. Each lease must provide, or be deemed to provide, that the Board shall have the right to terminate the lease upon default by the tenant in observing any provisions of the Restrictions. The Board may deny permission to lease any Lot on any reasonable grounds the Board may find. The Board shall have the right to require the Owner to deposit in escrow with the Association (in addition to any other deposits which may be required by the Owner so long as such additional deposit is not prohibited by law) an amount not to exceed one month's rental fee paid. Said deposit may be used by the Association to repair any damage to the Property resulting from acts or omission by the tenants (as determined in the sole discretion of the Board). Regardless of whether or not expressed in the applicable lease, all Owners shall be jointly and severally liable with the tenants of such Lot to the Association for any amount which is required by the Association to effect such repairs or to pay any claim for any injury or damage to property caused by the negligence of the tenant of such Lot or for the acts or omissions of the tenant(s) of such Lot which constitute a violation of, or non-compliance with, the provisions of the Documents. All leases shall comply with and be subject to the provisions of the Restrictions and the provisions of same shall be deemed expressly incorporated into any lease of a Lot. This Section 2.03 shall also apply to assignments and renewals of leases. No lease approved by the Board shall be amended or modified without the Board's approval. In making its determination as to whether to approve a lease of a Lot, the Board shall not discriminate on the grounds of race, gender, religion, national origin, familial status or physical or mental handicap; provided, however, nothing herein shall be construed to require the Association to furnish an alternate tenant to the Owner in the event the Board disapproves a lease or tenant. Upon entering into an agreement for the lease of a Lot, an -/- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 13 of 57 Owner, other than Declarant, shall provide written notice to the Board, or its designee, of the lease agreement and furnish the names of the prospective tenant. The Board may require that the Owner deliver to the tenant, a copy of the Restrictions and obtain a written instrument executed by the tenant acknowledging receipt of the Restrictions which receipt will be provided to the Board. The Board shall have the right to charge an Owner a reasonable fee (not to exceed $500.00) as determined by the Board for the processing of leases of Lots. 2.04 Subdividing. No Lot shall be further divided or subdivided, nor may any easements or other interests therein less than the whole be conveyed by the Owner thereof without the prior written approval of the ACC; provided, however, that when Declarant is the Owner thereof, Declarant may further divide and subdivide any Lot and convey any easements or other interests less than the whole, all without the approval of the ACC. 2.05 Hazardous Activities. No activities may be conducted on or within the Property and no Improvements constructed on any portion of the Property which, in the opinion of the Board, are or might be unsafe or hazardous to any person or property. Without limiting the generality of the foregoing, no firearms or fireworks may be discharged upon any portion of the Property unless discharged in conjunction with an event approved in advance by the Board and no open fires may be lighted or permitted except within safe and well-designed fireplaces or in contained barbecue units while attended and in use for cooking purposes. No portion of the Property may be used for the takeoff, storage, or landing of aircraft (including, without limitation, helicopters) except for medical emergencies. 2.06 Insurance Rates. Nothing shall be done or kept on the Property which would increase the rate of casualty or liability insurance or cause the cancellation of any such insurance on the Common Area, or the Improvements located thereon, without the prior written approval of the Board. 2.07 Mining and Drilling. No portion of the Property may be used for the purpose of mining, quarrying, drilling, boring, or exploring for or removing oil, gas, or other hydrocarbons, minerals of any kind, rocks, stones, sand, gravel, aggregate, or earth. This provision will not be construed to prevent the excavation of rocks, stones, sand, gravel, aggregate, or earth or the storage of such material for use as fill provided that such activities are conducted in conjunction with the construction of Improvements and/or the development of the Property by the Declarant. Furthermore, this provision will not be interpreted to prevent the drilling of water wells approved in advance by the ACC which are required to provide water to all or any portion of the Property. All water wells must also be approved in advance by the ACC and any applicable regulatory authority. 2.08 Water Bodies. By acceptance of a deed to Lot, each Owner acknowledges that the water levels of all water bodies, if any, may vary. There is no guarantee by the Declarant or the Association that water levels will be constant or aesthetically pleasing at any particular time. In fact, water levels may be non-existent from time to time. -8- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSUN 1/699746v.3 46145-8 10/22/2013 Page 14 of 57 2.09 Noise. No exterior speakers, horns, whistles, bells, or other sound devices (other than security devices used exclusively for security purposes) shall be located, used, or placed on any of the Property. No noise or other nuisance shall be permitted to exist or operate upon any portion of the Property so as to be offensive or detrimental to any other portion of the Property or to its Residents. Without limiting the generality of the foregoing, if any noise or nuisance emanates from any Improvement on any Lot, the Association may (but shall not be obligated to) enter any such Improvement and take such reasonable actions necessary to terminate such noise (including silencing any burglar or break-in alarm). 2.10 Animals - Household Pets. No animals, including pigs, hogs, swine, poultry, fowl, wild animals, horses, cattle, sheep, goats, or any other type of animal not considered to be a domestic household pet within the ordinary meaning and interpretation of such words may be kept, maintained, or cared for on or within the Property (as used in this paragraph, the term "domestic household pet" shall not mean or include non-traditional pets such pot-bellied pigs, miniature horses, goats, exotic snakes or lizards, ferrets, monkeys, chickens or other exotic animals). The Board may conclusively determine, in its sole discretion, whether a particular pet is a domestic household pet within the ordinary meaning and interpretation of such words. No Owner may keep more than four (4) cats and dogs, in the aggregate, of which no more than two (2) may be dogs, unless otherwise approved by the Board. No animal may be allowed to make an unreasonable amount of noise, or to become a nuisance, and no domestic pets will be allowed on the Property other than within the Owner's residence, or the fenced yard space associated therewith, unless confined to a leash. The Association may restrict pets to certain areas on the Property. No animal may be stabled, maintained, kept, cared for, or boarded for hire or remuneration on the Property, and no kennels or breeding operation will be allowed. No animal may be allowed to run at large, and all animals must be kept within enclosed areas which must be clean, sanitary, and reasonably free of refuse, insects, and waste at all times. No pet may be left unattended in yards, porches or other outside area. All pet waste will be removed and appropriately disposed of by the owner of the pet. All pets must be registered, licensed and inoculated as required by Applicable Law. If, in the opinion of the Board, any pet becomes a source of unreasonable annoyance to others, or the owner of the pet fails or refuses to comply with these restrictions, the Owner, upon written notice, may be required to remove the pet from the Property. 2.11 Rubbish and Debris. As determined by the Board, no rubbish or debris of any kind may be placed or permitted to accumulate on or within the Property, and no odors will be permitted to arise therefrom so as to render all or any portion of the Property unsanitary, unsightly, offensive, or detrimental to any other property or Residents. Refuse, garbage, and trash must be kept at all times in covered containers, and such containers must be kept within enclosed structures or appropriately screened from view. Each Owner will contract with an independent disposal service to collect all garbage or other wastes, if such service is not provided by a governmental entity or the Association. -9- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _I/699746v.3 46145-8 10/22/2013 Page 15 of 57 2.12 Trash Containers. Trash containers and recycling bins must be stored in one of the following locations: (a) inside the garage of the single-family residence constructed on the Lot; or (b) behind the single-family residence or fence constructed on the Lot in such a manner that the trash container and recycling bin is not visible from any street, alley, or adjacent Lot. The Board shall have the right to specify additional locations on each Owner's Lot in which trash containers or recycling bins must be stored. 2.13 Maintenance. The Owners of each Lot shall jointly and severally have the duty and responsibility, at their sole cost and expense, to keep their Lot and all Improvements thereon in good condition and repair and in a well-maintained, safe, clean and attractive condition at all times. The Board, in its sole discretion, shall determine whether a violation of the maintenance obligations set forth in this Section 2.13 has occurred. Such maintenance includes, but is not limited to the following, which shall be performed in a timely manner, as determined by the Board, in its sole discretion: (i) Prompt removal of all litter, trash, refuse, and wastes. (ii) Lawn mowing. (iii) Tree and shrub pruning. (iv) Watering. (v) Keeping exterior lighting and mechanical facilities in working order. (vi) Keeping lawn and garden areas alive, free of weeds, and attractive. (vii) Keeping planting beds free of turf grass. (viii) Keeping sidewalks and driveways in good repair. (ix) Complying with Applicable Law. (x) Repainting of Improvements. (xi) Repair of exterior damage, and wear and tear to Improvements. 2.14 Street Landscape Area -Owner's Obligation to Maintain Landscayine. Each Owner will be responsible, at such Owner's sole cost and expense, for maintaining mowing, replacing, pruning, and irrigating the landscaping between the boundary of such Owner's Lot -10- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _1/699746v.3 46145-8 10/22/2013 Page 16 of 57 and the curb of any adjacent right-of-way, street or alley (the "ST Landscape Area") unless the responsibility for maintaining the ST Landscape Area is performed by the Association. 2.15 Antennas. Except as expressly provided below, no exterior radio or television antennae or aerial or satellite dish or disc, shall be erected, maintained or placed on a Lot without the prior written approval of the ACC; provided, however, that: (i) an antenna designed to receive direct broadcast services, including direct -to -home satellite services, that is one meter or less in diameter; or (ii) an antenna designed to receive video programming services via multipoint distribution services, including multi -channel multipoint distribution services, instructional television fixed services, and local multipoint distribution services, that is one meter or less in diameter or diagonal measurement; or (iii) an antenna that is designed to receive television or radio broadcast signals (collectively, (i) through (iii) are referred to herein as the "Permitted Antennas") will be permitted subject to reasonable requirements as to location and screening as may be set forth in rules adopted by the ACC, consistent with Applicable Law, in order to minimize obtrusiveness as viewed from streets and adjacent property. 2.16 Location of Permitted Antennas. A Permitted Antenna may be installed solely on the Owner's Lot and shall not encroach upon any street, Common Area, or any other portion of the Property. A Permitted Antenna shall be installed in a location on the Lot from which an acceptable quality signal can be obtained and where least visible from the street and the Property, other than the Lot. In order of preference, the locations of a Permitted Antenna which will be considered least visible by the ACC are as follows: (i) Attached to the back of the principal single-family residence constructed on the Lot, with no part of the Permitted Antenna any higher than the lowest point of the roofline and screened from view of adjacent Lots and the street; then (ii) Attached to the side of the principal single-family residence constructed on the Lot, with no part of the Permitted Antenna any higher than the lowest point of the roofline and screened from view of adjacent Lots and the street. The ACC may, from time to time, modify, amend, or supplement the rules regarding installation and placement of Permitted Antennas. Satellite dishes one meter or less in diameter, e.g., DirecTV or Dish satellite dishes, are permitted, HOWEVER you are required to comply with the rules regarding installation and placement. These Rules may be modified by the ACC from time to time. Please contact the ACC for the current rules regarding installation and -11- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 17 of 57 placement. 2.17 Signs. Unless otherwise prohibited by Applicable Law, no sign of any kind may be displayed to the public view on any Lot without the prior written approval of the ACC, except for: (i) signs which are permitted pursuant to the Design Guidelines or the Rules; (ii) signs which are part of Declarant's overall marketing, sale, or construction plans or activities for the Property; (iii) one (1) temporary "For Sale' or "For Lease" sign placed on the Lot. The sign will be limited to a maximum face area of five (5) square feet on each visible side and, if free standing, is mounted on a single or frame post. The overall height of the sign from finished grade at the spot where the sign is located may not exceed four (4) feet. The sign must be removed within two (2) business days following the sale or lease of the Lot; (iv) political signs may be erected provided the sign: (a) is erected no earlier than the 901h day before the date of the election to which the sign relates; (b) is removed no later than the 1011 day after the date of the election to which the sign relates; and (c) is ground -mounted. Only one sign may be erected for each candidate or ballot item. In addition, signs which include any of the components or characteristics described in Section 202.009(c) of the Texas Property Code are prohibited; (v) permits as may be required by legal proceedings or a governmental entity; (vi) a religious item on the entry door or door frame of a residence (which may not extend beyond the outer edge of the door frame), provided that the size of the item(s), individually or in combination with other religious items on the entry door or door frame of the residence, does not exceed twenty-five (25) square inches; and (vii) a "no soliciting" and "security warning" sign near or on the front door to their residence, provided, that the sign may not exceed twenty-five (25) square inches. 2.18 Flags — Approval Requirements. An Owner is permitted to display the flag of the United States of America, the flag of the State of Texas, or an official or replica flag of any branch of the United States Military ("Permitted Flag") and permitted to install a flagpole no more than five feet (5') in length affixed to the front of a residence near the principal entry or affixed to the rear of a residence ("Permitted Flagpole"). Only two (2) permitted Flagpoles are allowed per residence. A Permitted Flag or Permitted Flagpole need not be approved in advance by the ACC. Approval by the ACC is required prior to installing vertical freestanding flagpoles installed in the front or back yard area of any Lot ("Freestanding Flagpole"). To obtain ACC approval of any Freestanding Flagpole, the Owner shall provide the ACC with the -12- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 18 of 57 following information: (a) the location of the Freestanding Flagpole to be installed on the Lot; (b) the type of Freestanding Flagpole to be installed; (c) the dimensions of the Freestanding Flagpole; and (d) the proposed materials of the Freestanding Flagpole (the "Flagpole Application"). A Flagpole Application may only be submitted by an Owner. The Flagpole Application shall be submitted in accordance with the provisions of Article 7 of this Declaration. 2.19 Flags — Installation and Display. Unless otherwise approved in advance and in writing by the ACC, Permitted Flags, Permitted Flagpoles and Freestanding Flagpoles, installed in accordance with the Flagpole Application, must comply with the following: (i) No more than one (1) Freestanding Flagpole OR no more than two (2) Permitted Flagpoles are permitted per Lot, on which only Permitted Flags may be displayed; (ii) Any Permitted Flagpole must be no longer than five feet (5) in length and any Freestanding Flagpole must be no more than twenty feet (20') in height (iii) Any Permitted Flag displayed on any flagpole may not be more than three feet in height by five feet in width (3'x5'); (iv) With the exception of flags displayed on Common Area or any Lot which is being used for marketing purposes by a Homebuilder, the flag of the United States of America must be displayed in accordance with 4 U.S.C. Sections 5-10 and the flag of the State of Texas must be displayed in accordance with Chapter 3100 of the Texas Government Code; (v) The display of a Permitted Flag, or the location and construction of a Permitted Flagpole or Freestanding Flagpole must comply with all Applicable Law; (vi) Each Permitted Flagpole and Freestanding Flagpole must be constructed of permanent, long-lasting materials, with a finish appropriate to the materials used in the construction thereof and harmonious with the residence; (vii) Permitted Flag, Permitted Flagpole or Freestanding Flagpole must be maintained in good condition and any deteriorated Permitted Flag or deteriorated or structurally unsafe Permitted Flagpole or Freestanding Flagpole must be repaired, replaced or removed; (viii) A Permitted Flag may be illuminated by no more than one (1) halogen landscaping light of low beam intensity which shall not be aimed towards or directly affect any neighboring Lot; and -13- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _1/699746v.3 46145-8 10/22/2013 Page 19 of 57 (ix) Any external halyard of a Permitted Flagpole or Freestanding Flagpole must be secured so as to reduce or eliminate noise from flapping against the metal of the Permitted Flagpole or Freestanding Flagpole. The requirements of this Section 2.19 shall not apply to any flag or flagpole erected by the Declarant. 2.20 Tanks. No tanks, including tanks for storage of fuel, water, oil, or LPG are permitted on the Property. Notwithstanding the foregoing, swimming pool filter tanks are permitted. No elevated tanks of any kind may be erected, placed or permitted on any Lot without the advance written approval of the ACC. All permitted tanks must be screened from view in accordance with a screening plan approved in advance by the ACC. This provision will not apply to a tank used to operate a standard residential gas grill. 2.21 Temporary Structures. No tent, shack, or other temporary building, Improvement, or structure shall be placed upon the Property without the prior written approval of the ACC; provided, however, that temporary structures necessary for storage of tools and equipment, and for office space for Homebuilders, architects, and foremen during actual construction may be maintained with the prior approval of Declarant, approval to include the nature, size, duration, and location of such structure. 2.22 Unsightly Articles; Vehicles. No article deemed to be unsightly by the Board will be permitted to remain on any Lot so as to be visible from adjoining property or from public or private thoroughfares. Without limiting the generality of the foregoing, trailers, graders, trucks other than pickups, boats, tractors, campers, wagons, buses, motorcycles, motor scooters, all -terrain vehicles and garden and lawn maintenance equipment must be kept at all times except when in actual use, in enclosed structures or screened from view and no repair or maintenance work may be done on any of the foregoing, or on any automobile (other than minor emergency repairs), except in enclosed garages or other structures. Service areas, storage areas, compost piles and facilities for hanging, drying or airing clothing or household fabrics must be appropriately screened from view, and no lumber, grass, plant waste, shrub or tree clippings, metals, bulk materials, scrap, refuse or trash must be kept, stored, or allowed to accumulate on any portion of the Property except within enclosed structures or appropriately screened from view. No: (i) racing vehicles; or (ii) other vehicles (including, without limitation, motorcycles or motor scooters) which are inoperable or do not have a current license tag will be permitted to remain visible on any Lot or to be parked on any roadway within the Property. Motorcycles shall be operated in a quiet manner. Parking of commercial vehicles or equipment, recreational vehicles, boats and other watercraft, trailers, stored vehicles or inoperable vehicles in places other than: (a) in enclosed garages; and (b) behind a fence so as to not be visible from any other portion of the Property is prohibited; provided, construction, service and delivery vehicles may be exempt from this -14- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _1/699746v.3 46145-8 10/22/2013 Page 20 of 57 provision for such period of time as is reasonably necessary to provide service or to make a delivery to a residence. Mobile homes are prohibited. Notwithstanding the foregoing, sales trailers or other temporary structures installed by the Declarant or expressly approved by the ACC shall be permitted. 2.23 On Street Parkine. Unless otherwise approved by the Declarant or the Board, no vehicle may be parked on any road or street within the Property unless in the event of an emergency. "Emergency' for purposes of the foregoing sentence shall mean an event which jeopardizes life or property. 'Parked" as used herein shall be defined as a vehicle left unattended by a licensed operator for more than thirty (30) consecutive minutes. 2.24 Basketball Goals; Permanent and Portable. The basketball goal requirements are set forth in the Design Guidelines. Portable basketball goals are permitted but must be stored in the rear of the Lot or inside garage from sundown to sunrise. Basketball goals must be properly maintained and painted, with the net in good repair. All basketball goals, whether permanent or portable, must be approved by the ACC prior to being placed on any Lot. 2.25 No Tennis or Recreational Courts: Playscaves. No tennis, recreational or sport courts shall be constructed on any Lot unless expressly approved by the ACC. The specific requirements of tennis, recreational and/or sport courts are set forth in the Design Guidelines. 2.26 Decorations and Lighting. Unless otherwise permitted by Section 2.16(vi), no decorative appurtenances such as sculptures, birdbaths and birdhouses, fountains, or other decorative embellishments shall be placed on the residence or on the front yard or on any other portion of a Lot which is visible from any street, unless such specific items have been approved in writing by the ACC. Additional specifications related to decorations and lighting are set forth in the Design Guidelines. 2.27 Clotheslines; Window Air Conditioners. No clotheslines and no outdoor clothes drying or hanging shall be permitted within the Property, nor shall anything be hung, painted or displayed on the outside of the windows (or inside, if visible from the outside) or placed on the outside walls or outside surfaces of doors of any of the residence, and no awnings, canopies or shutters (except for those heretofore or hereinafter installed by Declarant or a Homebuilder) shall be affixed or placed upon the exterior walls or roofs of residences, or any part thereof, nor relocated or extended, without the prior written consent of the ACC. Window air conditioners are prohibited. 2.25 Dumnine. No portion of the Property shall be used or maintained as a dumping ground for rubbish, trash, new or used lumber or wood, metal scrap, garbage or other waste, except that such material may be kept in areas of the Property designated for this purpose by Declarant (in connection with its construction) or by the Board, provided that these materials -15- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 21 of 57 are kept in sanitary containers in a clean and sanitary condition. Owners shall place these containers for collection only in the designated areas and only on the day these refuse materials are to be collected. Empty containers shall be removed promptly after collection. 2.29 Compliance with Restrictions. Each Owner, his or her family, Residents of a Lot, tenants, and the guests, invitees, and licensees of the preceding shall comply strictly with the provisions of the Restrictions as the same may be amended from time to time. Failure to comply with any of the Restrictions shall constitute a violation of the Restrictions and may result in a fine against the Owner in accordance with Section 6.13 of this Declaration, and shall give rise to a cause of action to recover sums due for damages or injunctive relief, or both, maintainable by the Declarant, the Board on behalf of the Association, the ACC, or by an aggrieved Owner. Without limiting any rights or powers of the Association, the Board may (but shall not be obligated to) remedy or attempt to remedy any violation of any of the provisions of Restrictions, and the Owner whose violation has been so remedied shall be personally liable to the Association for all costs and expenses of effecting (or attempting to effect) such remedy. If such Owner fails to pay such costs and expenses upon demand by the Association, such costs and expenses (plus interest from the date of demand until paid at the maximum lawful rate, or if there is no such maximum lawful rate, at the rate of one and one- half percent (1-1/2%) per month) shall be assessed against and chargeable to the Owner's Lot(s). Any such amounts assessed and chargeable against a Lot shall be secured by the liens reserved in this Declaration for Assessments and may be collected by any means provided in this Declaration for the collection of Assessments, including, but not limited to, foreclosure of such liens against the Owner's Lot(s). Each such Owner shall indemnify and hold harmless the Association and its officers, directors, employees and agents from any cost, loss, damage, expense, liability, claim or cause of action incurred or that may arise by reason of the Association's acts or activities under this Section 2.29 (including any cost, loss, damage, expense, liability, claim or cause of action arising out of the Association's negligence in connection therewith), except for such cost, loss, damage, expense, liability, claim or cause of action arising by reason of the Association's gross negligence or willful misconduct. "Gross negligence" as used herein does not include simple negligence, contributory negligence or similar negligence short of actual gross negligence. 2.30 Liability of Owners for Damage to Common Area. No Owner shall in any way alter, modify, add to or otherwise perform any work upon the Common Area without the prior written approval of the Board. Each Owner shall be liable to the Association for any and all damages to: (i) the Common Area and any Improvements constructed thereon; or (ii) any Improvements constructed on any Lot, the maintenance of which has been assumed by the Association, which damages were caused by the neglect, misuse or negligence of such Owner or Owner's family, or by Resident of such Owner's Lot, or any guest or invitee of such Owner or Resident. The full cost of all repairs of such damage shall be an Individual Assessment against such Owner's Lot, secured by a lien against such Owner's Lot and collectable in the same manner as Assessments. -16- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTFN 1/699746v.3 46145-8 10/22/2013 Page 22 of 57 2.31 No Warranty of Enforceability. Declarant makes no warranty or representation as to the present or future validity or enforceability of the Restrictions. Any Owner acquiring a Lot in reliance on one or more of the Restrictions shall assume all risks of the validity and enforceability thereof and, by acquiring the Lot, agrees to hold Declarant harmless therefrom. 2.32 Restriction on Use of Common Area. The Board may prohibit or restrict the use of the Common Area from time to time, on a non-discriminatory basis, if and to the extent required for safety or other valid reasons. 2.33 Declarant and Homebuilder Exemption. The provisions of this Article are intended to restrict certain uses that may be harmful or affect the ambience or aesthetic appeal of the Property; the restrictions are not intended to prohibit the Declarant or Homebuilders from performing such work as may be necessary for the development of the Property or the construction of Improvements thereon. The restrictions in this Article shall not be binding on Declarant or Homebuilders in the performance of any work required in order to complete construction of the Property, or any portion thereof. ARTICLE 3 CONSTRUCTION RESTRICTIONS 3.01 Approval for Construction. Unless prosecuted by the Declarant, no Improvements shall be constructed upon any Lot without the prior written approval of the ACC in accordance with Article 7 of this Declaration. 3.02 Masonry Requirements. The masonry requirements for each residence constructed on a Lot are set forth in the Design Guidelines. 3.03 Minimum Square Footage. The minimum square footage requirements for each residence constructed on a Lot are set forth in the Design Guidelines. 3.04 Garages. The garage requirements for each residence constructed on a Lot are set forth in the Design Guidelines. 3.05 Fences; Sidewalks. All fences and walls shall comply with all Applicable Law. Unless otherwise approved by the ACC, no fence, wall or hedge will be erected or maintained on any Lot nearer to the street than the front elevation of the residence constructed on the Lot, except for fences erected in conjunction with the model homes or sales offices. The ACC will have the sole discretion to determine the front elevation of the residence for the purpose of this Section 3.05. Fences constructed on corner lots maybe installed one (1) foot from the sidewalk and/or curb along the side yard adjacent to the street provided that such fencing complies with -17- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 23 of 57 Applicable Law. The fencing requirements for each residence constructed on a Lot are set forth in the Design Guidelines. If required by the Plat, the Owner of each Lot shall construct, at such Owner's sole cost and expense and prior to occupying any Improvement, a sidewalk on such Owner's Lot, located and designed in conformance with the Plat. 3.06 Building Restrictions. All building materials must be approved in advance by the ACC. All projections from a residence or other structure, including but not limited to chimney flues, vents, gutters, downspouts, utility boxes, porches, railings and exterior stairways must, unless otherwise approved by the ACC, match the color of the surface from which they project. No highly reflective finishes (other than glass, which may not be mirrored) shall be used on exterior surfaces (other than surfaces of hardware fixtures), including, without limitation, the exterior surfaces of any Improvements. 3.07 Alteration or Removal of Improvements. Any construction, other than normal maintenance, which in any way alters the exterior appearance of any Improvement, or the removal of any Improvement shall be performed only with the prior written approval of the ACC. 3.08 Drainage. There shall be no interference with the established drainage patterns over any of the Property, including the Lots, except by Declarant, unless adequate provision is made for proper drainage and such provision is approved in advance by the ACC. Specifically, and not by way of limitation, no Improvement, including landscaping, may be installed which impedes the proper drainage of water between Lots. 3.09 Construction Activities. The Restrictions will not be construed or applied so as to unreasonably interfere with or prevent normal construction activities during the construction of Improvements by an Owner (including Declarant or a Homebuilder) upon or within the Property. Specifically, no such construction activities will be deemed to constitute a nuisance or a violation of the Restrictions by reason of noise, dust, presence of vehicles or construction machinery, posting of signs or similar activities, provided that such construction is pursued to completion with reasonable diligence and conforms to usual construction practices in the area. In the event that construction upon any Lot does not conform to usual practices in the area as determined by the ACC in its sole and reasonable judgment, the ACC will have the authority to seek an injunction to stop such construction. In addition, if during the course of construction upon any Lot there is excessive accumulation of debris of any kind which would render the Lot or any portion thereof unsanitary, unsightly, offensive, or detrimental to it or any other portion of the Property, then the ACC may contract for or cause such debris to be removed, and the Owner of the Lot will be liable for all reasonable expenses incurred in connection therewith. 3.10 Roofing. The roofing requirements for each residence constructed on a Lot are set forth in the Design Guidelines. -18- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 24 of 57 3.11 Swimming Pools. Specific swimming pool requirements are set forth in the Design Guidelines. Any swimming pool constructed on a Lot must be enclosed with a fence or other enclosure device completely surrounding the swimming pool which, at a minimum, satisfies all Applicable Law. Nothing in this Section 3.11 is intended or shall be construed to limit or affect an Owner's obligation to comply with any Applicable Law concerning swimming pool enclosure requirements. Above -ground or temporary swimming pools are prohibited. 3.12 Solar Energy Device. During the Development Period this Section 3.12 does not apply and the Declarant must approve in advance and in writing the installation of any solar energy device or apparatus (a "Solar Energy Device"). Until expiration or termination of the Development Period, the Declarant may prohibit the installation of any Solar Energy Device. After expiration or termination of the Development Period, Solar Energy Devices may be installed with the advance written approval of the ACC. (a) Application. To obtain ACC approval of a Solar Energy Device, the Owner shall provide the ACC with the following information: (i) the proposed installation location of the Solar Energy Device; and (ii) a description of the Solar Energy Device, including the dimensions, manufacturer, and photograph or other accurate depiction (the "Solar Application'). A Solar Application may only be submitted by an Owner. The Solar Application shall be submitted in accordance with the provisions of Article 7 of this Declaration. (b) Approval Process. The ACC will review the Solar Application in accordance with the terms and provisions of Article 7 of this Declaration. The ACC will approve a Solar Energy Device if the Solar Application complies with Section 3.12(c) below UNLESS the ACC makes a written determination that placement of the Solar Energy Device, despite compliance with Section 3.12(c), will create a condition that substantially interferes with the use and enjoyment of property within the Property by causing unreasonable discomfort or annoyance to persons of ordinary sensibilities. The ACC's right to make a written determination in accordance with the foregoing sentence is negated if all Owners of Lots immediately adjacent to the Owner/applicant provide written approval of the proposed placement. Any proposal to install a Solar Energy Device on property owned or maintained by the Association or property owned in common by Members of the Association must be approved in advance and in writing by the Board, and the Board need not adhere to this policy when considering any such request. (c) Approval Conditions. Unless otherwise approved in advance and in writing by the ACC, each Solar Application and each Solar Energy Device to be installed in accordance therewith must comply with the following: (i) The Solar Energy Device must be located on the roof of the residence located on the Owner's Lot, entirely within a fenced area of the Owner's Lot, or entirely within a fenced patio located on the Owner's Lot. If the -19- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTfN 1/699746v.3 46145-5 10/22/2013 Page 25 of 57 Solar Energy Device will be located on the roof of the residence, the ACC may designate the location for placement unless the location proposed by the Owner increases the estimated annual energy production of the Solar Energy Device, as determined by using a publicly available modeling tool provided by the National Renewable Energy Laboratory, by more than 10 percent above the energy production of the Solar Energy Device if installed in the location designated by the ACC. If the Owner desires to contest the alternate location proposed by the ACC, the Owner should submit information to the ACC which demonstrates that the Owner's proposed location meets the foregoing criteria. If the Solar Energy Device will be located in the fenced area of the Owner's Lot or patio, no portion of the Solar Energy Device may extend above the fence line. (ii) If the Solar Energy Device is mounted on the roof of the principal residence located on the Owner's Lot, then: (a) the Solar Energy Device may not extend higher than or beyond the roofline; (b) the Solar Energy Device must conform to the slope of the roof and the top edge of the Solar Device must be parallel to the roofline; (c) the frame, support brackets, or visible piping or wiring associated with the Solar Energy Device must be silver, bronze or black. 3.13 Rainwater Harvesting Systems. Rain barrels or rainwater harvesting systems (a "Rainwater Harvesting System") may be installed with the advance written approval of the ACC. (a) Application. To obtain ACC approval of a Rainwater Harvesting System, the Owner shall provide the ACC with the following information: (a) the proposed installation location of the Rainwater Harvesting System; and (b) a description of the Rainwater Harvesting System, including the color, dimensions, manufacturer, and photograph or other accurate depiction (the "Rain System Application"). A Rain System Application may only be submitted by an Owner. (b) Approval Process. The decision of the ACC will be made in accordance with Article 7 of this Declaration. Any proposal to install a Rainwater Harvesting System on property owned by the Association or property owned in common by Members of the Association must be approved in advance and in writing by the Board, and the Board need not adhere to this policy when considering any such request. (c) Approval Conditions. Unless otherwise approved in advance and in writing by the ACC, each Rain System Application and each Rainwater Harvesting System to be installed in accordance therewith must comply with the following: -20- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 26 of 57 (i) The Rainwater Harvesting System must be consistent with the color scheme of the residence constructed on the Owner's Lot, as reasonably determined by the ACC. (ii) The Rainwater Harvesting System does not include any language or other content that is not typically displayed on such a device. (iii) The Rainwater Harvesting System is in no event located between the front of the residence constructed on the Owner's Lot and any adjoining or adjacent street. (iv) There is sufficient area on the Owner's Lot to install the Rainwater Harvesting System, as reasonably determined by the ACC. (v) If the Rainwater Harvesting System will be installed on or within the side yard of a Lot, or would otherwise be visible from a street, the Common Area, or another Owner's Lot, the ACC may regulate the size, type, shielding of, and materials used in the construction of the Rainwater Harvesting System. See Section 3.13(d) for additional guidance. (d) Guidelines. If the Rainwater Harvesting System will be installed on or within the side yard of a Lot, or would otherwise be visible from a street, the Common Area, or another Owner's Lot, the ACC may regulate the size, type, shielding of, and materials used in the construction of the Rainwater Harvesting System. Accordingly, when submitting a Rain System Application, the application should describe methods proposed by the Owner to shield the Rainwater Harvesting System from the view of any street, Common Area, or another Owner's Lot. When reviewing a Rain System Application for a Rainwater Harvesting System that will be installed on or within the side yard of a Lot, or would otherwise be visible from a street, the Common Area, or another Owner's Lot, any additional requirements imposed by the ACC to regulate the size, type, shielding of, and materials used in the construction of the Rainwater Harvesting System, may notrp ohibit the economic installation of the Rainwater Harvesting System, as reasonably determined by the ACC. ARTICLE 4 GRANADA RESIDENTIAL COMMUNITY, INC. 4.01 Organization. The Association will be a nonprofit corporation created for the purposes, charged with the duties, and vested with the powers of a Texas non-profit corporation. Neither the Certificate nor Bylaws will for any reason be amended or otherwise changed or interpreted so as to be inconsistent with this Declaration. 4.02 Membership. -21- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-5 10/22/2013 Page 27 of 57 (a) Mandatory Membership. Any person or entity, upon becoming an Owner, will automatically become a Member of the Association. Membership will be appurtenant to and will run with the ownership of the Lot that qualifies the Owner thereof for membership, and membership may not be severed from the ownership of the Lot, or in any way transferred, pledged, mortgaged or alienated, except together with the title to such Lot. If you acquire a Lot you automatically become a member of the Association. Membership is Mandatory! (b) Easement of Enjoyment — Common Area. Every Member will have a right and easement of enjoyment in and to all of the Common Area and an access easement by and through any Common Area, which easements will be appurtenant to and will pass with the title to such Member's Lot, subject to the following restrictions and reservations: (i) The right of the Declarant to cause such Improvements and features to be constructed upon the Common Area, as determined from time to time by the Declarant, in the Declarant's sole and absolute discretion; (ii) The right of the Association to suspend the right to use the Common Area for any period during which any Assessment against such Member's Lot remains past due and for any period during which such member is in violation of any provision of this Declaration; (iii) The right of the Association and Declarant (during the Development Period) to dedicate or transfer all or any part of the Common Area to any public agency, authority or utility for any purpose; (iv) The right of the Association and Declarant (during the Development Period) to grant easements or licenses over and across the Common Area; (v) The right of the Association to borrow money for the purpose of improving the Common Area and, in furtherance thereof, mortgage the Common Area; (vi) The right of the Declarant, during the Development Period, and the Board thereafter, to promulgate Rules regarding the use of the Common Area and any Improvements thereon; and (vii) The right of the Association to contract for services with any third parties on such terms as the Association may determine. 4.03 Governance. The Board will consist of at least three (3) persons elected at the annual meeting of the Association, or at a special meeting called for such purpose. Notwithstanding the foregoing provision or any provision in this Declaration to the contrary, -22- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 28 of 57 Declarant will have the sole right to appoint and remove all members of the Board until the 10`h anniversary of the date this Declaration is Recorded. No later than the 10i6 anniversary of the date this Declaration is Recorded, or sooner as determined by Declarant, the Board will hold a meeting of Members of the Association for the purpose of electing one-third of the Board (the "Initial Member Election Meeting"), which Board member(s) must be elected by Owners other than the Declarant. Declarant shall continue to have the sole right to appoint and remove two-thirds of the Board from and after the Initial Member Election Meeting until expiration or termination of the Development Period. 4.04 Voting Rights. The right to cast votes and the number of votes which may be cast for election of members to the Board (except as provided by Section 4.03) and on all other matters to be voted on by the Members will be calculated as set forth below. (i) The Owner of each Lot will have one (1) vote for each Lot so owned. (ii) In addition to the votes to which Declarant is entitled by reason of Section 4.04(i), for every one (1) vote outstanding in favor of any other person or entity, Declarant will have four (4) additional votes until the expiration or termination of the Development Period. (iii) When more than one person or entity owns a portion of the fee simple interest in any Lot, all such persons or entities will be Members. The vote or votes (or fraction thereof) for such Lot will be exercised by the person so designated in writing to the Secretary of the Association by the Owner of such Lot, and in no event will the vote for such Lot exceed the total votes to which such Lot is otherwise entitled under this Section 4.04. 4.05 Powers. The Association will have the powers of a Texas nonprofit corporation. It will further have the power to do and perform any and all acts that may be necessary or proper, for or incidental to, the exercise of any of the express powers granted to it by Applicable Law or this Declaration. Without in any way limiting the generality of the two preceding sentences, the Board, acting on behalf of the Association, will have the following powers at all times: (a) Rules. Bylaws and Community Manual. To make, establish and promulgate, and in its discretion to amend from time to time, or repeal and re-enact, such rules, regulations, Bylaws and Community Manual not in conflict with this Declaration, as it deems proper, covering any and all aspects of the Property (including the operation, maintenance and preservation thereof) or the Association. Any Rules, and any modifications to existing Rules, or the Bylaws proposed by the Board must be approved in advance and in writing by the Declarant until expiration or termination of the Development Period. -23- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 29 of 57 (b) Insurance. To obtain and maintain in effect, policies of insurance that, in the opinion of the Board, are reasonably necessary or appropriate to carry out the Association's functions. (c) Records. To keep books and records of the Association's affairs, and to make such books and records, together with current copies of the Restrictions available for inspection by the Owners, Mortgagees, and insurers or guarantors of any Mortgage upon request during normal business hours. (d) Assessments. To levy and collect assessments, as provided in Article 6 below. (e) Right of Entry and Enforcement. To enter at any time without notice in an emergency (or in the case of a non -emergency, after twenty-four (24) hours written notice), without being liable to any Owner or Resident, upon any Lot and into any Improvement thereon for the purpose of enforcing the Restrictions or for the purpose of maintaining or repairing any area, Improvement or other facility to conform to the Restrictions. The expense incurred by the Association in connection with the entry upon any Lot and the maintenance and repair work conducted thereon or therein will be a personal obligation of the Owner of the Lot so entered, will be deemed an Individual Assessment against such Lot, will be secured by a lien upon such Lot, and will be enforced in the same manner and to the same extent as provided in Article 6 hereof for Assessments. The Association will have the power and authority from time to time, in its own name and on its own behalf, or in the name of and on behalf of any Owner who consents thereto, to commence and maintain actions and suits to enforce, by mandatory injunction or otherwise, or to restrain and enjoin, any breach or threatened breach of the Restrictions. The Association is also authorized to settle claims, enforce liens and take all such action as it may deem necessary or expedient to enforce the Restrictions; provided, however, that the Board will never be authorized to expend any Association funds for the purpose of bringing suit against Declarant, or its successors or assigns. The Association may not alter or demolish any Improvements on any Lot other than Common Area in enforcing these Restrictions before a judicial order authorizing such action has been obtained by the Association, or before the written consent of the Owner(s) of the affected Lot(s) has been obtained. EACH SUCH OWNER AND RESIDENT WILL INDEMNIFY AND HOLD HARMLESS THE ASSOCIATION, ITS OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS FROM ANY COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION INCURRED OR THAT MAY ARISE BY REASON OF THE ASSOCIATION'S ACTS OR ACTIVITIES UNDER THIS SECTION 4.05(e) (INCLUDING ANY COST, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION ARISING OUT OF THE ASSOCIATION'S NEGLIGENCE IN CONNECTION THEREWITH), EXCEPT FOR SUCH COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION ARISING BY REASON OF THE ASSOCIATION'S GROSS NEGLIGENCE OR WILLFUL -24- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 30 of 57 MISCONDUCT. "GROSS NEGLIGENCE" DOES NOT INCLUDE SIMPLE NEGLIGENCE, CONTRIBUTORY NEGLIGENCE OR SIMILAR NEGLIGENCE SHORT OF ACTUAL GROSS NEGLIGENCE. (f) Leal and Accounting Services. To retain and pay for legal and accounting services necessary or proper in the operation of the Association. (g) Conveyances. To grant and convey to any person or entity the real property and/or other interest, including fee title, leasehold estates, easements, rights-of-way or mortgages, out of, in, on, over, or under any Common Area for the purpose of constructing, erecting, operating or maintaining the following: (i) Parks, parkways or other recreational facilities or structures; (ii) Roads, streets, sidewalks, signs, street lights, walks, driveways, trails and paths; (iii) Lines, cables, wires, conduits, pipelines or other devices for utility purposes; (iv) Sewers, water systems, storm water drainage systems, sprinkler systems and pipelines; and/or (v) Any similar Improvements or facilities. Nothing set forth above, however, will be construed to permit use or occupancy of any Improvement or other facility in a way that would violate applicable use and occupancy restrictions imposed by the Restrictions or by Applicable Law. In addition, until expiration or termination of the Development Period, any grant or conveyance under this Section 4.05(g) must be approved in advance and in writing by the Declarant. (h) Manager. To retain and pay for the services of a person or firm (the "Manager"), which may include Declarant or any affiliate of Declarant, to manage and operate the Association, including its property, to the extent deemed advisable by the Board. Personnel may be employed directly by the Association or may be furnished by the Manager. Each contract entered into between the Association and the Manager will be terminable by the Association without cause upon sixty (60) days written notice to the Manager. To the extent permitted by Applicable Law, the Board may delegate any other duties, powers and functions to the Manager. In addition, the Board may adopt transfer fees, resale certificate fees or any other fees associated with the provision of management services to the Association or its Members. THE MEMBERS HEREBY RELEASE THE ASSOCIATION AND THE MEMBERS OF THE BOARD AND COMMITTEE MEMBERS FROM LIABILITY FOR ANY OMISSION OR IMPROPER EXERCISE BY THE MANAGER OF ANY SUCH DUTY, POWER OR FUNCTION SO DELEGATED. -25- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN -1/699746v.3 46145-8 10/22/2013 Page 31 of 57 (i) Property Services. To pay for water, sewer, garbage removal, street lights, landscaping, gardening and all other utilities, services, repair and maintenance for any portion of the Property, Common Area, private or public recreational facilities, easements, roads, roadways, rights -of -ways, signs, parks, parkways, median strips, sidewalks, paths, trails, ponds, and lakes. (j) Other Services and Properties. To obtain and pay for any other property and services, and to pay any other taxes or assessments that the Association or the Board is required or permitted to secure or to pay for pursuant to Applicable Law or under the terms of the Restrictions or as determined by the Board. (k) Construction on Common Area. To construct new Improvements or additions to any property owned, leased, or licensed by the Association, subject to the approval of the Board and the Declarant until expiration or termination of the Development Period. (1) Contracts. To enter into Bulk Rate Contracts or other contracts or licenses with Declarant or any third party on such terms and provisions as the Board will determine, to operate and maintain any Common Area or other property, or to provide any service, including but not limited to cable, utility, or telecommunication services, or perform any function on behalf of Declarant, the Board, the Association, or the Members. During the Development Period, all Bulk Rate Contracts must be approved in advance and in writing by the Declarant. (m) Property Ownership. To acquire, own and dispose of all manner of real and personal property, including habitat, whether by grant, lease, easement, gift or otherwise. During the Development Period, all acquisitions and dispositions of the Association hereunder must be approved in advance and in writing by the Declarant. (n) Rules. To establish Rules governing and limiting the use of the Common Area and any Improvements thereon. 4.06 Acceptance of Common Area. The Association may acquire, hold, and dispose of any interest in tangible and intangible personal property and real property. Declarant and its assignees may transfer or convey to the Association interests in real or personal property within or for the benefit of the Property, or the Property and the general public, and the Association will accept such transfers and conveyances. Such property may be improved or unimproved and may consist of fee simple title, easements, leases, licenses, or other real or personal property interests. Such property will be accepted by the Association and thereafter will be maintained as Common Area by the Association for the benefit of the Property and/or the general public subject to any restrictions set forth in the deed or other instrument transferring or assigning such property to the Association. Upon Declarant's written request, the Association will re- -26 - GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 32 of 57 convey to Declarant any unimproved real property that Declarant originally conveyed to the Association, as determined in the sole and absolute discretion of the Declarant. 4.07 Indemnification. To the fullest extent permitted by Applicable Law but without duplication (and subject to) any rights or benefits arising under the Certificate or Bylaws of the Association, the Association will indemnify any person who was, or is, a party, or is threatened to be made a party to any threatened pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that he is, or was, a director, officer, committee member, employee, servant or agent of the Association against expenses, including attorneys' fees, reasonably incurred by him in connection with such action, suit or proceeding if it is found and determined by the Board or a court of competent jurisdiction that he or she: (i) acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the Association; or (ii) with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any action, suit or proceeding by settlement, or upon a plea of nolo contendere or its equivalent, will not of itself create a presumption that the person did not act in good faith or in a manner which was reasonably believed to be in, or not opposed to, the best interests of the Association or, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful. 4.08 Insurance. The Board may purchase and cause to be maintained, at the expense of the Association, insurance on behalf of any person who is acting as a director, officer, committee member, employee, servant or agent of the Association against any liability asserted against or incurred by such person in any such capacity, or arising out of such person's status as such, whether or not the Association would have the power to indemnify such person against such liability or otherwise. 4.09 Bulk Rate Contracts. Without limitation on the generality of the Association powers set out in Section 4.05 hereinabove (except that during the Development Period, all Bulk Rate Contracts must be approved in advance and in writing by the Declarant), the Association will have the power to enter into Bulk Rate Contracts at any time and from time to time. The Association may enter into Bulk Rate Contracts with any service providers chosen by the Board (including Declarant, and/or any entities in which Declarant, or the owners or partners of Declarant are owners or participants, directly or indirectly). The Bulk Rate Contracts may be entered into on such terms and provisions as the Board may determine in its sole and absolute discretion. The Association may, at its option and election, add the charges payable by such Owner under such Bulk Rate Contract to the Assessments against such Owner's Lot. In this regard, it is agreed and understood that, if any Owner fails to pay any charges due by such Owner under the terms of any Bulk Rate Contract, then the Association will be entitled to collect such charges by exercising the same rights and remedies it would be entitled to exercise under this Declaration with respect to the failure by such Owner to pay Assessments, including without limitation the right to foreclose the lien against such Owner's Lot which is reserved -27- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 33 of 57 under the terns and provisions of this Declaration. In addition, in the event of nonpayment by any Owner of any charges due under any Bulk Rate Contract and after the lapse of at least twelve (12) days since such charges were due, the Association may, upon five (5) days' prior written notice to such Owner (which may run concurrently with such 12 day period), in addition to all other rights and remedies available pursuant to Applicable Law, terminate, in such manner as the Board deems appropriate, any utility service or other service provided at the cost of the Association and not paid for by such Owner (or the Resident of such Owner's Lot) directly to the applicable service or utility provider. Such notice will consist of a separate mailing or hand delivery at least five (5) days prior to a stated date of termination, with the title "termination notice" or similar language prominently displayed on the notice. The notice will include the office or street address where the Owner (or the Resident of such Owner's Lot) can make arrangements for payment of the bill and for re -connection or re -institution of service. No utility or cable television service will be disconnected on a day, or immediately preceding a day, when personnel are not available for the purpose of collection and reconnecting such services. 4.10 Community Systems. The Association is specifically authorized to provide, or to enter into contracts to provide Community Systems. Any such contracts may provide for installation, operation, management, maintenance, and upgrades or modifications to the Community Systems as the Board determines appropriate. Each Owner acknowledges that interruptions in Community Systems and services will occur from time to time. Declarant and the Association, or any of their respective successors or assigns shall not be liable for, and no Community System or service user shall be entitled to refund, rebate, discount, or offset in applicable fees for, any interruption in Community Systems and services, regardless of whether or not such interruption is caused by reasons within the service provider's control. 4.11 Declarant's Right to Contribute to Revenues of the Association. Declarant shall have the right, but not the obligation, in its sole discretion and from time to time, to contribute to the revenues of the Association. At the option of Declarant, such contribution may be reflected on the books and records of the Association as a loan, in which event it shall be repaid by the Association to Declarant, at the discretion of Declarant. If treated as a loan, the contribution shall accrue interest, compounded monthly, from the date it is made until the date of its repayment, at the short term Applicable Federal Rate ("AFR"), as published by the Internal Revenue Service, and adjusted each month to reflect the AFR for such month. 4.12 Protection of Declarant's Interests. Despite any assumption of control of the Board by Owners other than Declarant, until the expiration or termination of the Development Period, the Board is prohibited from taking any action which would discriminate against Declarant, or which would be detrimental to the sale of Lots owned by Declarant. Declarant shall be entitled to determine, in its sole and absolute discretion, whether any such action discriminates or is detrimental to Declarant. The Board will be required to continue the same level and quality of maintenance, operations and services as that provided immediately prior to -28- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _1/699746v.3 46145-8 10/22/2013 Page 34 of 57 assumption of control of the Board by Owners other than Declarant until the expiration or termination of the Development Period. 4.13 Administration of Common Area. The administration of the Common Area by the Association shall be in accordance with the provisions of Applicable Law and the Restrictions, and of any other agreements, documents, amendments or supplements to the foregoing which may be duly adopted or subsequently required by any institutional or governmental lender, purchaser, insurer or guarantor of mortgage loans (including, for example, the Federal Home Loan Mortgage Corporation) designated by Declarant or by any governmental or quasi -governmental agency having regulatory jurisdiction over the Common Area or by any title insurance company selected by Declarant to insure title to any portion of the Common Area. 4.14 Private Streets. The Association shall be obligated to maintain the Private Streets in a good and functioning condition and in compliance with Applicable Law. The Private Streets shall provide perpetual access to all Lots for police and other emergency vehicles, public and private utility maintenance and service personnel, solid waste collection services, the U.S. Postal Service, and government employees in pursuit of their official duties. Access to the Private Streets for the persons and entities referenced in the preceding sentence shall be reasonably provided by the Association. 4.15 Notices and Disclaimers as to Security Systems. NEITHER THE DECLARANT, A HOMEBUILDER, NOR THE ASSOCIATION, OR THEIR SUCCESSORS OR ASSIGNS GUARANTEE OR WARRANT, EXPRESSLY OR IMPLIEDLY, THE MERCHANTABILITY OR FITNESS FOR USE OF ANY SUCH SECURITY SYSTEM OR SERVICES, OR THAT ANY SYSTEM OR SERVICES WILL PREVENT INTRUSIONS NOTIFY AUTHORITIES OF FIRES OR OTHER OCCURRENCES, OR THE CONSEQUENCES OF SUCH OCCURRENCES, REGARDLESS OF WHETHER OR NOT THE SYSTEM OR SERVICES ARE DESIGNED TO MONITOR SAME; AND EVERY OWNER OR RESIDENT OF PROPERTY RECEIVING SECURITY SERVICES THROUGH THE COMMUNITY SYSTEMS ACKNOWLEDGES THAT NEITHER THE DECLARANT, A HOMEBUILDER, NOR THE ASSOCIATION, OR ANY OR THEIR SUCCESSORS OR ASSIGNS ARE INSURERS OF THE OWNER OR RESIDENT'S PROPERTY OR OF THE PROPERTY OF OTHERS LOCATED ON THE LOT AND WILL NOT BE RESPONSIBLE OR LIABLE FOR LOSSES, INJURIES OR DEATHS RESULTING FROM SUCH OCCURRENCES. It is extremely difficult and impractical to determine the actual damages, if any, which may proximately result from a failure on the party of a security service provider to perform any of its obligations with respect to security services and, therefore, every Owner or Resident of property receiving security services through the Community Systems agrees that neither the Declarant, a Homebuilder, nor the Association, or their successors or assigns assumes liability for loss or damage to property or for personal injury or death to persons due to any reason, including, without limitation, failure in transmission of an alarm, interruption of security service or failure to respond to an alarm because of: (a) any failure of -29- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _1/699746v.3 46145-8 10/22/2013 Page 35 of 57 the Owner's security system; (b) any defective or damaged equipment, device, line or circuit; (c) negligence, active or otherwise, of the security service provider or its officers, agents or employees; or (d) fire, flood, riot, war, act of God or other similar causes which are beyond the control of the security service provider. Every Owner and Resident obtaining security services through the Community Systems further agrees for himself, his grantees, tenants, guests, invitees, licensees and family members that if any loss or damage should result from a failure of performance or operation, or from defective performance or operation, or from improper installation, monitoring or servicing of the system, or from negligence, active or otherwise, of the security service provider or its officers, agents, or employees, the liability, if any, of the Declarant, a Homebuilder, the Association, or their successors or assigns for loss, damage, injury or death shall be limited to a sum not exceeding Two Hundred Fifty U.S. Dollars ($250.00), which limitation apply irrespective of the cause or origin of the loss or damage and notwithstanding that the loss or damage results directly or indirectly from negligent performance, active or otherwise, or non-performance by an officer, agent or employee of Declarant, a Homebuilder, or the Association, or their successors or assigns. Further, in no event will Declarant, a Homebuilder, the Association, or their successors or assigns be liable for consequential damages, wrongful death, personal injury or commercial loss. ARTICLE 5 INSURANCE 5.01 Insurance. Each Owner will be required to purchase and maintain commercially standard insurance on the Improvements located upon such Owner's Lot. The Association will not be required to maintain insurance on the Improvements constructed upon any Lot. The Association may, however, obtain such insurance as it may deem necessary, including but not limited to such policies of liability and property damage insurance as the Board, in its discretion, may deem necessary. Insurance premiums for such policies will be a common expense to be included in the assessments levied by the Association. The acquisition of insurance by the Association will be without prejudice to the right and obligation of any Owner to obtain additional individual insurance. 5.02 Restoration. In the event of any fire or other casualty, unless otherwise approved by the ACC, the Owner will promptly repair, restore and replace any damaged or destroyed structures to their same exterior condition existing prior to the damage or destruction thereof. Such repair, restoration or replacement will be commenced and completed in a good and workmanlike manner and diligently pursed to completion using exterior materials identical to those originally used in the structures damaged or destroyed. To the extent that the Owner fails to commence such repair, restoration or replacement of substantial or total damage or destruction within one hundred and twenty (120) days after the occurrence of such damage or destruction, and thereafter prosecute same to completion, or if the Owner does not clean up any debris resulting from any damage within thirty (30) days after the occurrence of such damage, the Association may commence, complete or effect such repair, restoration, replacement or -30- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTrN 1/699746v.3 46145-8 10/22/2013 Page 36 of 57 clean-up, and such Owner will be personally liable to the Association for the cost of such work; provided, however, that if the Owner is prohibited or delayed by Applicable Law from commencing such repair, restoration, replacement or clean-up, the rights of the Association under this provision will not arise until the expiration of thirty (30) days after such prohibition or delay is removed. If the Owner fails to pay such cost upon demand by the Association, the cost thereof (plus interest from the date of demand until paid at the maximum lawful rate, or if there is no such maximum lawful rate, than at the rate of one and one-half percent (11h%) per month) will be added to the Assessment chargeable to the Owner's Lot. Any such amounts added to the Assessments chargeable against a Lot will be secured by the liens reserved in the Declaration for Assessments and may be collected by any means provided in this Declaration for the collection of Assessments, including, but not limited to, foreclosure of such liens against the Owner's Lot. EACH SUCH OWNER WILL INDEMNIFY AND HOLD HARMLESS THE ASSOCIATION AND ITS OFFICERS, DIRECTORS, COMMITTEE MEMBERS, EMPLOYEES AND AGENTS FROM ANY COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION INCURRED OR THAT MAY ARISE BY REASON OF THE ASSOCIATION'S ACTS OR ACTIVITIES UNDER THIS SECTION 5.02, EXCEPT FOR SUCH COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR COST OF ACTION ARISING BY REASON OF THE ASSOCIATION'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. "GROSS NEGLIGENCE" AS USED HEREIN DOES NOT INCLUDE SIMPLE NEGLIGENCE, CONTRIBUTORY NEGLIGENCE OR SIMILAR NEGLIGENCE SHORT OF ACTUAL GROSS NEGLIGENCE. 5.03 Mechanic's and Materialmen's Lien. Each Owner whose structure is repaired, restored, replaced or cleaned up by the Association pursuant to the rights granted under this Article 5, hereby grants to the Association an express mechanic's and materialmen's lien for the reasonable cost of such repair, restoration, or replacement of the damaged or destroyed Improvement to the extent that the cost of such repair, restoration or replacement exceeds any insurance proceeds allocable to such repair, restoration or replacement and delivered to the Association. Upon request by the Board, and before the commencement of any reconstruction, repair, restoration or replacement, such Owner will execute all documents sufficient to effectuate such mechanic's and materialmen's lien in favor of the Association. ARTICLE 6 COVENANT FOR ASSESSMENTS 6.01 Assessments. (a) Established by Board. Assessments established by the Board pursuant to the provisions of this Article 6 will be levied against each Lot in amounts determined pursuant to Section 6.08 below. The total amount of Assessments will be determined by the Board pursuant to Section 6.03, 6.04, 6.05, 6.06 and/or 6.07. -31- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 37 of 57 (b) Personal Obligation; Lien. Each Assessment, together with such interest thereon and costs of collection as hereinafter provided, will be the personal obligation of the Owner of the Lot against which the Assessment is levied and will be secured by a lien hereby granted and conveyed by Declarant to the Association against each such Lot and all Improvements thereon. The Association may enforce payment of such Assessments in accordance with the provisions of this Article. 6.02 Maintenance Fund. The Board will establish a maintenance fund into which will be deposited all monies paid to the Association and from which disbursements will be made in performing the functions of the Association under this Declaration. The funds of the Association may be used for any purpose authorized by the Restrictions and the Applicable Law. 6.03 Regular Assessments. Prior to the beginning of each fiscal year, the Board will estimate the expenses to be incurred by the Association during such year in performing its functions and exercising its powers under the Restrictions, including, but not limited to, the cost of all management, repair and maintenance, the cost of providing street and other lighting, the cost of administering and enforcing the Restrictions, and will estimate the amount needed to maintain a reasonable provision for contingencies and an appropriate replacement reserve, and will give due consideration to any expected income and any surplus from the prior year's fund. Regular Assessments sufficient to pay such estimated net expenses will then be levied at the level set by the Board in its sole and absolute discretion, and the Board's determination will be final and binding so long as it is made in good faith. If the sums collected prove inadequate for any reason, including nonpayment of any Individual Assessment by any Owner, the Association may at any time, and from time to time, levy further Regular Assessments in the same manner. All such Regular Assessments will be due and payable to the Association at the beginning of the fiscal year or during the fiscal year in equal monthly installments on or before the first day of each month, or in such other manner as the Board may designate in its sole and absolute discretion. 6.04 Working Capital Assessment. Each Owner (other than Declarant) of a Lot will pay a one-time working capital assessment to the Association in such amount as may be determined by the Board from time to time in its sole and absolute discretion. Such working capital assessment need not be uniform among all Lots, and the Board is expressly authorized to levy working capital assessments of varying amounts depending on the size, use and general character of the Lots then being made subject to the levy. The levy of any working capital assessment will be effective only upon the Recordation of a written notice, signed by a duly authorized officer of the Association, setting forth the amount of the working capital assessment and the Lots to which it applies. Notwithstanding the foregoing provision, the following transfers will not be subject to the working capital assessment: (i) foreclosure of a deed of trust lien, tax lien, or the Association's assessment lien; (ii) transfer to, from, or by the Association; (iii) voluntary transfer -32- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _l/699746v.3 46145-8 10/22/2013 Page 38 of 57 by an Owner to one or more co-owners, or to the Owner's spouse, child, or parent. Additionally, an Owner who (i) is a Homebuilder; or (ii) acquires a Lot for the purpose of resale to a Homebuilder (a "Development Owner') will not be subject to the working capital assessment; however, the working capital assessment will be payable by any Owner who acquires a Lot from a Homebuilder or Development Owner for residential living purposes or by any Owner who: (i) acquires a Lot and is not in the business of constructing single-family residences for resale to a third party; or (ii) who acquires the Lot for any purpose other than constructing a single-family residence thereon for resale to a third party. The working capital assessment will be in addition to, not in lieu of, any other assessments levied in accordance with this Article 6 and will not be considered an advance payment of such assessments. The working capital assessment hereunder will be due and payable by the transferee to the Association immediately upon each transfer of title to the Lot, including upon transfer of title from one Owner of such Lot to any subsequent purchaser or transferee thereof. The Declarant during the Development Period, and thereafter the Board, will have the power to waive the payment of any working capital assessment attributable to a Lot (or all Lots) by the Recordation of a waiver notice, which waiver may be temporary or permanent. 6.05 Amenity Reimbursement Fee. Each Owner who acquires a Lot from the Declarant will pay a one-time amenity reimbursement fee to the Declarant in the amount of $750.00 per Lot owned by such Owner. The amenity reimbursement fee will be in addition to, not in lieu of, any other Assessments levied in accordance with this Article 6 and will not be considered an advance payment of any such Assessments. The amenity reimbursement fee is part of the consideration for the transfer of the Lot from Declarant to the Owner. The amenity reimbursement fee will be due and payable to the Declarant immediately upon transfer of title to the Lot. Declarant may the payment of any amenity reimbursement fee attributable to a Lot by the recordation in the Official Public Records of Tarrant County, Texas, of a waiver notice executed by the Declarant. 6.06 Special Assessments. In addition to the regular annual Assessments provided for above, the Board may levy special Assessments whenever in the Board's opinion such special Assessments are necessary to enable the Board to carry out the functions of the Association under the Restrictions. The amount of any special Assessments will be at the reasonable discretion of the Board. In addition to the special Assessments authorized above, the Association may, in any fiscal year, levy a special Assessment applicable to that fiscal year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Area. 6.07 Individual Assessments. In addition to any other Assessments, the Board may levy an Individual Assessment against an Owner and the Owner's Lot. Individual Assessments may include, but are not limited to: interest, late charges, and collection costs on delinquent Assessments; reimbursement for costs incurred in bringing an Owner or the Owner's Lot into compliance with the Declaration; fines for violations of the Restrictions; transfer -related fees -33- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 39 of 57 and resale certificate fees; fees for estoppel letters and project documents; insurance deductibles; reimbursement for damage or waste caused by willful or negligent acts of the Owner, the Owner's guests, invitees or Residents of the Owner's Lot; common expenses that benefit fewer than all of the Lots, which may be assessed according to benefit received; fees or charges levied against the Association on a per -Lot basis; and "pass through' expenses for services to Lots provided through the Association and which are equitably paid by each Lot according to the benefit received. 6.08 Amount of Assessment. (a) Assessments to be Levied. The Board shall levy Assessments against each "Assessment Unit" (as defined in Section 6.08(6) below). Unless otherwise provided in this Declaration, Assessments levied pursuant to Section 6.03 and Section 6.06 shall be levied uniformly against each Assessment Unit allocated to a Lot. (b) Assessment Unit. Each Lot shall constitute one "Assessment Unit" unless otherwise provided in Section 6.08(c) and W. (c) Assessment Exemption. Notwithstanding anything in this Declaration to the contrary, no Assessments shall be levied upon Lots owned by Declarant. (d) Other Exemptions. Declarant may, in its sole discretion, elect to: (i) exempt any un -platted or unimproved portion of the Property or any Lot from any Assessments levied or charged pursuant to this Article 6; or (ii) delay the levy of Assessments against any un - platted, unimproved or improved portion of the Property. Declarant or the Board may also exempt any portion of the Property which_ is dedicated and accepted by public authority from Assessments. 6.09 Late Charges. If any Assessment is not paid by the due date applicable thereto, the Owner responsible for the payment may be required by the Board, at the Board's election at any time and from time to time, to pay a late charge in such amount as the Board may designate, and the late charge (and any reasonable handling costs) will be levied as an Individual Assessment against the Lot owned by such Owner, collectible in the manner as provided for collection of Assessments, including foreclosure of the lien against such Lot; provided, however, such charge will never exceed the maximum charge permitted under Applicable Law. 6.10 Owner's Personal Obligation; Interest. Assessments levied as provided for herein will be the personal and individual debt of the Owner of the Lot against which are levied such Assessments. No Owner may exempt himself from liability for such Assessments. In the event of default in the payment of any such Assessment, the Owner of the Lot will be obligated to pay interest on the amount of the Assessment at the highest rate allowed by applicable usury laws then in effect on the amount of the Assessment from the due date therefor (or if there is no -34- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 40 of 57 such highest rate, then at the rate of one and one half percent (1 1/2%)per month), together with all costs and expenses of collection, including reasonable attorney's fees. Such amounts will be levied as an Individual Assessment against the Lot owned by such Owner. 6.11 Assessment Lien and Foreclosure. The payment of all sums assessed in the manner provided in this Article is, together with late charges as provided in Section 6.09 and interest as provided in Section 6.10 hereof and all costs of collection, including attorney's fees as herein provided, secured by the continuing Assessment lien granted to the Association pursuant to Section 6.01(b) above, and will bind each Lot in the hands of the Owner thereof, and such Owner's heirs, personal representatives, successors or assigns. The aforesaid lien will be superior to all other liens and charges against such Lot, except only for: (i) tax liens; (ii) all sums secured by a first mortgage lien or first deed of trust lien of record, to the extent such lien secures sums borrowed for the acquisition or improvement of the Lot in question and (iii) home equity loans or home equity lines of credit which are secured by a second mortgage lien or second deed of trust lien of record; provided that, in the case of subparagraphs (ii) and (iii) above, such Mortgage was Recorded before the delinquent Assessment was due. The Association will have the power to subordinate the aforesaid Assessment lien to any other lien. Such power will be entirely discretionary with the Board, and such subordination may be signed by an officer, agent, or attorney of the Association. The Association may, at its option and without prejudice to the priority or enforceability of the Assessment lien granted hereunder, prepare a written notice of Assessment lien setting forth the amount of the unpaid indebtedness, the name of the Owner of the Lot covered by such lien and a description of the Lot. Such notice may be signed by one of the officers, agents, or attorneys of the Association and will be Recorded. Each Owner, by accepting a deed or ownership interest to a Lot subject to this Declaration, will be deemed conclusively to have granted a power of sale to the Association to secure and enforce the Assessment lien granted hereunder. The Assessment liens and rights to foreclosure thereof will be in addition to and not in substitution of any other rights and remedies the Association may have by law and under this Declaration, including the rights of the Association to institute suit against such Owner personally obligated to pay the Assessment and/or for foreclosure of the aforesaid lien. In any foreclosure proceeding, such Owner will be required to pay the costs, expenses and reasonable attorney's fees incurred. The Association will have the power to bid (in cash or by credit against the amount secured by the lien) on the property at foreclosure or other legal sale and to acquire, hold, lease, mortgage, convey or otherwise deal with the same. Upon the written request of any Mortgagee, the Association will report to said Mortgagee any unpaid Assessments remaining unpaid for longer than sixty (60) days after the same are due. The lien hereunder will not be affected by the sale or transfer of any Lot; except, however, that in the event of foreclosure of any lien superior to the Assessment lien, the lien for any Assessments that were due and payable before the foreclosure sale will be extinguished, provided that past -due Assessments will be paid out of the proceeds of such foreclosure sale only to the extent that hinds are available after the satisfaction of the indebtedness secured by the Mortgage. The provisions of the preceding sentence will not, however, relieve any subsequent Owner (including any Mortgagee or other -35- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _1/699746v.3 46145-8 10/22/2013 Page 41 of 57 purchaser at a foreclosure sale) from paying Assessments becoming due and payable after the foreclosure sale. Upon payment of all sums secured by a lien of the type described in this Section 6.11, the Association will upon the request of the Owner execute a release of lien relating to any lien for which written notice has been Recorded as provided above, except in circumstances in which the Association has already foreclosed such lien. Such release will be signed by an officer, agent, or attorney of the Association. In addition to the lien hereby retained, in the event of nonpayment by any Owner of any Assessment and after the lapse of at least twelve (12) days since such payment was due, the Association may, upon five (5) days' prior written notice (which may run concurrently with such twelve (12) day period) to such Owner, in addition to all other rights and remedies available pursuant to Applicable Law, terminate, in such manner as the Board deems appropriate, any utility or cable service provided through the Association and not paid for directly by a Owner or Resident to the utility provider. Such notice will consist of a separate mailing or hand delivery at least five (5) days prior to a stated date of disconnection, with the title "termination notice' or similar language prominently displayed on the notice. The notice will include the office or street address where the Owner or the Resident of the Owner's Lot can make arrangements for payment of the bill and for reconnection of service. Utility or cable service will not be disconnected on a day, or immediately preceding a day, when personnel are not available for the purpose of collection and reconnecting such services. Except as otherwise provided by Applicable Law, the sale or transfer of a Lot will not relieve the Owner of such Lot or such Owner's transferee from liability for any Assessments thereafter becoming due or from the lien associated therewith. If an Owner conveys its Lot and on the date of such conveyance Assessments against the Lot remain unpaid, or said Owner owes other sums or fees under this Declaration to the Association, the Owner will pay such amounts to the Association out of the sales price of the Lot, and such sums will be paid in preference to any other charges against the Lot other than liens superior to the Assessment lien and charges in favor of the State of Texas or a political subdivision thereof for taxes on the Lot which are due and unpaid. The Owner conveying such Lot will remain personally liable for all such sums until the same are fully paid, regardless of whether the transferee of the Lot also assumes the obligation to pay such amounts. The Board may adopt an administrative transfer fee to cover the expenses associated with updating the Association's records upon the transfer of a Lot to a third party; provided, however, that no transfer fee will be due upon the transfer of a Lot from Declarant to a third party. Yes. the Association can foreclose on your Lot! If you fail to pay assessments to the Association, you may lose title to your Lot if the Association forecloses its assessment lien. 6.12 Exempt Property. The following area within the Property will be exempt from the Assessments provided for in this Article: (a) All area dedicated and accepted by a public authority; -36- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 42 of 57 (b) The Common Area; and (c) Any portion of the Property owned by Declarant. 6.13 Fines and Damages Assessment. (a) Board Assessment. The Board may assess fines against an Owner for violations of the Restrictions which have been committed by an Owner, a Resident, or the Owner or Residents guests, agents or invitees. Any fine and/or charge for damage levied in accordance with this Section 6.13 will be considered an Individual Assessment pursuant to this Declaration. Each day of violation may be considered a separate violation if the violation continues after written notice to the Owner. The Board may assess damage charges against an Owner for pecuniary loss to the Association from property damage or destruction of Common Area or any facilities located by the Owner, Resident, or their guests, agents, or invitees. The Manager will have authority to send notices to alleged violators, informing them of their violations and asking them to comply with the Rules and/or informing them of potential or probable fines or damage assessments. The Board may from time to time adopt a schedule of fines. (b) Procedure. The procedure for assessment of fines and damage charges will be as follows: (i) the Association, acting through an officer, Board member or Manager, must give the Owner notice of the fine or damage charge not later than thirty (30) days after the assessment of the fine or damage charge by the Board; (ii) the notice of the fine or damage charge must describe the violation or damage; (iii) the notice of the fine or damage charge must state the amount of the fine or damage charge; (iv) the notice of a fine or damage charge must state that the Owner will have thirty (30) days from the date of the notice to request a hearing before the Board to contest the fine or damage charge; and (v) the notice of a fine must allow the Owner a reasonable time, by a specified date, to cure the violation (if the violation is capable of being remedied) and avoid the fine unless the Owner was given notice and a reasonable opportunity to cure a similar violation within the preceding six (6) months. -37- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 43 of 57 (c) Due Date. Fine and/or damage charges are due immediately after the expiration of the thirty (30) day period for requesting a hearing. If a hearing is requested, such fines or damage charges will be due immediately after the Board's decision at such hearing, assuming that a fine or damage charge of some amount is confirmed by the Board at such hearing. (d) Lien Created. The payment of each fine and/or damage charge levied by the Board against the Owner of a Lot is, together with interest as provided in Section 6.10 hereof and all costs of collection, including attorney's fees as herein provided, secured by the lien granted to the Association pursuant to Section 6.01(b) of this Declaration. Unless otherwise provided in this Section 6.13, the fine and/or damage charge will be considered an Assessment for the purpose of this Article, and will be enforced in accordance with the terms and provisions governing the enforcement of assessments pursuant to this Article 6. ARTICLE 7 ARCHITECTURAL CONTROL COMMITTEE Until Declarant and/or the Town Manager delegate their right to appoint and remove all members of the ACC to the Board as provided in Section 7.02(a) below, the ACC will be acting solely in Declarant's and the Town Manager's, as applicable, interest and will owe no duty to any other Owner or the Association. 7.01 Construction of Improvements. No Improvement may be erected, placed, constructed, painted, altered, modified or remodeled on any Lot, and no Lot may be re -subdivided or consolidated with other Lots or Property, by anyone other than Declarant without the prior written approval of the ACC. 7.02 Architectural Control Committee. (a) Composition. The ACC will be composed at least three (3) persons (who need not be Members or Owners) appointed as provided below, who will review Improvements proposed to be made by any Owner other than Declarant. Declarant will have the right to appoint and remove (with or without cause) two (2) members of the ACC and the Town Manager will have the right to appoint and remove (with or without cause) one (1) member of the ACC. Declarant and the Town Manager may assign their right to appoint members of the ACC to the Association by Recorded written instrument, and thereafter, the Board will have the right to appoint and remove (with or without cause) the members of the ACC. Any assignment by Declarant of the right to appoint and remove two (2) members of the ACC may be withdrawn until expiration of twelve (12) months after the expiration of the Development Period. If Declarant withdraws its assignment of the right to appoint and remove two (2) members of the ACC, then on the date of such withdrawal, Declarant will have the right to appoint and remove (with or without cause) two (2) members of the ACC. Declarant's right to appoint two (2) members of the ACC will -38- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 44 of 57 automatically be assigned to the Association upon the expiration of twelve (12) months after the expiration of the Development Period. The Town Manager will have the right to appoint and remove one (1) member of the ACC until the Town Manager assigns such right to the Board. Declarant and the Town Manager, jointly, may create and assign specific duties and responsibilities to one or more sub -committees consisting of members and/or nonmembers of the ACC. In the event responsibilities and duties are assigned to a sub -committee, those responsibilities and duties will no longer be discharged by the ACC unless the sub- committee exercising such duties and responsibilities is dissolved by Declarant and the Town Manager. The right to create, dissolve, and appoint members of such sub -committees will reside exclusively with Declarant and the Town Manager until such time as Declarant or the Town Manager, as applicable, assign their rights to appoint members of the ACC to the Association. The ACC will have the right to employ consultants and advisors as it deems necessary or appropriate. (b) Submission and Approval of Plans and Specifications. Construction plans and specifications or, when an Owner desires solely to re -subdivide or consolidate Lots, a proposal for such re -subdivision or consolidation, will be submitted in accordance with the Design Guidelines or any additional rules adopted by the ACC together with any review fee which is imposed by the ACC in accordance with Sections 7.02(c) to the ACC, at such address as may hereafter be designated in writing from time to time. No re -subdivision or consolidation will be made, nor any Improvement placed or allowed on any Lot, until the plans and specifications thereof have been approved in writing by a Majority of the members of the ACC. The ACC may, in reviewing such plans and specifications consider any information that it deems proper; including, without limitation, any permits, environmental impact statements or percolation tests that may be required by the ACC or any other entity; and harmony of external design and location in relation to surrounding structures, topography, vegetation, and finished grade elevation. The ACC may postpone its review of any plans and specifications submitted for approval pending receipt of any information or material which the ACC, in its sole discretion, may require. Site plans must be approved by the ACC prior to the clearing of any Lot, or the construction of any Improvements. The ACC may refuse to approve plans and specifications for proposed Improvements, or for the re -subdivision or consolidation of any Lot on any grounds that, in the sole and absolute discretion of the ACC, are deemed sufficient, including, but not limited to, purely aesthetic grounds. Notwithstanding any provision to the contrary in the Declaration, the ACC may issue an approval to Homebuilders for the construction of Improvements based on the review and approval of plan types and adopt a procedure which differs from the procedures for review and approval of Improvements set forth in this Declaration. (c) Design Guidelines. Declarant may adopt the initial Design Guidelines. The Majority of the ACC, including the member of the ACC appointed by the Town -39- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 45 of 57 Manager (unless the Town Manager has assigned its right to appoint a member of the ACC to the Association when, in such event, a Majority of the ACC) will have the power from time, to adopt (unless previously adopted by Declarant), amend, modify, or supplement the Design Guidelines. In the event of any conflict between the terms and provisions of the Design Guidelines and the terms and provisions of this Declaration, the terms and provisions of this Declaration will control. In addition, the ACC will have the power and authority to impose a fee for the review of plans, specifications and other documents and information submitted to it pursuant to the terms of this Declaration. Such charges will be held by the ACC and used to defray the administrative expenses incurred by the ACC in performing its duties hereunder; provided, however, that any excess funds held by the ACC will be distributed to the Association at the end of each calendar year. The ACC will not be required to review any plans until a complete submittal package, as required by this Declaration and the Design Guidelines, is assembled and submitted to the ACC. The ACC will have the authority to adopt such additional procedural and substantive rules and guidelines (including, without limitation, the imposition of any requirements for certificates of compliance or completion relating to any Improvement and the right to approve in advance any contractor selected for the construction of Improvements), not in conflict with this Declaration, as it may deem necessary or appropriate in connection with the performance of its duties hereunder (d) Actions of the ACC. The ACC may, by resolution unanimously adopted in writing, designate one or more of its members, or an agent acting on its behalf, to take any action or perform any duties for and on behalf of the ACC, except the granting of variances. In the absence of such designation, the vote of a Majority of all of the members of the ACC taken at a duly constituted meeting will constitute an act of the ACC. (e) Failure to Act. In the event that any plans and specifications are submitted to the ACC as provided herein, and the ACC fails either to approve or reject such plans and specifications for a period of sixty (60) days following such submission, rejection of such plans and specifications by the ACC will be presumed. In furtherance, and not in limitation, of the foregoing, any failure of the ACC to act upon a request for a variance will not be deemed a consent to such variance, and the ACC's written approval of all requests for variances will be expressly required. (f) Variances. The ACC may grant variances from compliance with any of the provisions of the Design Guidelines or this Declaration, when, in the opinion of the ACC, in its sole and absolute discretion, such variance is justified. All variances must be evidenced in writing and must be signed by at least a Majority of the members of the ACC, including the member of the ACC appointed by the Town Manager (unless the Town Manager has assigned its right to appoint a member of the ACC to the Association when, in such event, a Majority of the ACC may approve variances). Each variance must also be Recorded; provided however, that failure to record a variance will not affect the validity -40- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 46 of 57 thereof or give rise to any claim or cause of action against the ACC, including the Declarant or its designee, the Town Manager or its designee, the Association, or the Board. If a variance is granted, no violation of the covenants, conditions, or restrictions contained in this Declaration or the Design Guidelines will be deemed to have occurred with respect to the matter for which the variance was granted. The granting of such variance will not operate to waive or amend any of the terms and provisions of this Declaration or the Design Guidelines for any purpose except as to the particular property and in the particular instance covered by the variance, and such variance will not be considered to establish a precedent for any future waiver, modification, or amendment of the terms and provisions of this Declaration or the Design Guidelines. (g) Duration of Approval. Unless otherwise directed by the ACC, the approval of the ACC of any plans and specifications, and any variances granted by the ACC, will be valid for a period of one hundred and eighty (180) days only. If construction in accordance with such plans and specifications or variance is not commenced within such one hundred and eighty (180) day period and diligently prosecuted to completion, the Owner will be required to resubmit such plans and specifications or request for a variance to the ACC, and the ACC will have the authority to re-evaluate such plans and specifications in accordance with this Section 7.02(8) and may, in addition, consider any change in circumstances which may have occurred since the time of the original approval. (h) No Waiver of Future Approvals. The approval of the ACC to any plans or specifications for any work done or proposed in connection with any matter requiring the approval or consent of the ACC will not be deemed to constitute a waiver of any right to withhold approval or consent as to any plans and specifications on any other matter, subsequently or additionally submitted for approval by the same or a different person, nor will such approval or consent be deemed to establish a precedent for future approvals by the ACC. (i) Non -Liability of Committee Members. NEITHER DECLARANT, THE TOWN MANAGER, THE ACC, NOR ANY PARTNER, EMPLOYEE, DIRECTOR, OFFICER, COMMITTEE MEMBER, OR AGENT WILL BE LIABLE TO ANY OWNER OR TO ANY OTHER PERSON FOR ANY LOSS, DAMAGE OR INJURY ARISING OUT OF THE PERFORMANCE OF THE ACC'S DUTIES UNDER THIS DECLARATION. ARTICLE 8 MORTGAGE PROVISIONS The following provisions are for the benefit of holders, insurers and guarantors of first Mortgages on Lots within the Property. The provisions of this Article apply to the Declaration and the Bylaws of the Association. -41- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _1/699746v.3 46145-8 10/22/2013 Page 47 of 57 8.01 Notice of Action. An institutional holder, insurer, or guarantor of a first Mortgage which provides a written request to the Association (such request to state the name and address of such holder, insurer, or guarantor and the street address of the Lot to which its Mortgage relates (thereby becoming an "Eligible Mortgage Holder'), will be entitled to timely written notice of: (a) Any condemnation loss or any casualty loss which affects a material portion of the Property or which affects any Lot on which there is an Eligible Mortgage held, insured, or guaranteed by such Eligible Mortgage Holder; or (b) Any delinquency in the payment of assessments or charges owed for a Lot subject to the Mortgage of such Eligible Mortgage Holder, where such delinquency has continued for a period of sixty (60) days, or any other violation of the Restrictions relating to such Lot or the Owner or Resident which is not cured within sixty (60) days; or (c) Any lapse, cancellation, or material modification of any insurance policy maintained by the Association. 8.02 Examination of Books. The Association will permit Mortgagees to examine the books and records of the Association during normal business hours. 8.03 Taxes. Assessments and Charges. All taxes, assessments and charges that may become liens prior to first lien mortgages under Applicable Law will relate only to the individual Lots and not to any other portion of the Property. ARTICLE 9 GENERAL PROVISIONS 9.01 Term. The terms, covenants, conditions, restrictions, easements, charges, and liens set out in this Declaration will run with and bind the Property, and will inure to the benefit of and be enforceable by the Association, and every Owner, including Declarant, and their respective legal representatives, heirs, successors, and assigns, for a term beginning on the date this Declaration is Recorded, and continuing through and including January 1, 2067, after which time this Declaration will be automatically extended for successive periods of ten (10) years unless a change (the word "change" meaning a termination, or change of term or renewal term) is approved in a resolution adopted by Members entitled to cast at least sixty-seven percent (67%) of the total number of votes of the Association, voting in person or by proxy at a meeting duly called for such purpose, written notice of which will be given to all Members at least thirty (30) days in advance and will set forth the purpose of such meeting; provided, however, that such change will be effective only upon the Recording of a certified copy of such resolution. Notwithstanding any provision in this Section 9.01 to the contrary, if any provision of this Declaration would be unlawful, void, or voidable by reason of any Applicable Law restricting the period of time that covenants on land may be enforced, such provision will expire (twenty -42- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _1/699746v.3 46145-5 10/22/2013 Page 48 of 57 one) 21 years after the death of the last survivor of the now living descendants of Elizabeth II, Queen of England. 9.02 Eminent Domain. In the event it becomes necessary for any public authority to acquire all or any part of the Common Area for any public purpose during the period this Declaration is in effect, the Board is hereby authorized to negotiate with such public authority for such acquisition and to execute instruments necessary for that purpose. Should acquisitions by eminent domain become necessary, only the Board need be made a party, and in any event the proceeds received will be held by the Association for the benefit of the Owners. In the event any proceeds attributable to acquisition of Common Area are paid to Owners, such payments will be allocated on the basis of Assessment Units and paid jointly to the Owners and the holders of Mortgages or deeds of trust on the respective Lot. 9.03 Amendment. This Declaration may be amended or terminated by the Recording of an instrument executed and acknowledged by: (i) Declarant acting alone; or (ii) by the president and secretary of the Association setting forth the amendment and certifying that such amendment has been approved by Declarant (until expiration or termination of the Development Period) and Members entitled to cast at least sixty-seven percent (67%) of the number of votes entitled to be cast by members of the Association. Notwithstanding the foregoing, any amendment which would remove the Town Manager's right to appoint and remove members of the ACC or otherwise affect the Town's rights under this Declaration must be approved by the written consent of the Town. No amendment will be effective without the written consent of Declarant, its successors or assigns, during the Development Period. Specifically, and not by way of limitation, Declarant may unilaterally amend this Declaration: (i) to bring any provision into compliance with Applicable Law; (ii) to enable any reputable title insurance company to issue title insurance coverage on any Lot; (iii) to enable any institutional or governmental lender, purchaser, insurer or guarantor of mortgage loans, including, for example, the Federal Home Loan Mortgage Corporation, to make, purchase, insure or guarantee mortgage loans on Lots; or (iv) to comply with any requirements promulgated by a local, state or governmental agency, including, for example, the Department of Housing and Urban Development. 9.04 Conceptual Plans. All master plans, site plans, brochures, illustrations, information and marketing materials relating to the Property (collectively, the "Conceptual Plans") are conceptual in nature and are intended to be used for illustrative purposes only. The land uses and Improvements reflected on the Conceptual Plans are subject to change at any time and from time to time, and it is expressly agreed and understood that land uses within the Property may include uses which are not shown on the Conceptual Plans. Neither Declarant nor any Homebuilder or other developer of any portion of the Property makes any representation or warranty concerning such land uses and Improvements shown on the Conceptual Plans or otherwise planned for the Property and it is expressly agreed and understood that no Owner will be entitled to rely upon the Conceptual Plans in making the -43- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _I/699746v.3 46145-8 10/22/2013 Page 49 of 57 decision to purchase any land or Improvements within the Property. Each Owner who acquires a Lot within the Property acknowledges that development of the Property will likely extend over many years, and agrees that the Association will not engage in, or use Association funds to support, protest, challenge, or make any other form of objection to development of the Property or changes in the Conceptual Plans as they may be amended or modified from time to time. 9.05 Party Wall Fences. A fence or wall located on or near the dividing line between two (2) Lots and intended to benefit both Lots constitutes a "Party Wall" and, to the extent not inconsistent with the provisions of this Section 9.05, is subject to the general rules of law regarding party walls and liability for property damage due to negligence, willful acts, or omissions. (a) Encroachments & Easement. If the Party Wall is on one Lot due to an error in construction, the Party Wall is nevertheless deemed to be on the dividing line for purposes of this Section 9.05. Each Lot sharing a Party Wall is subject to an easement for the existence and continuance of any encroachment by the Party Wall as a result of construction, repair, shifting, settlement, or movement in any portion of the Party Wall, so that the encroachment may remain undisturbed as long as the Party Wall stands. Each Lot is subject to a reciprocal easement for the maintenance, repair, replacement, or reconstruction of the Party Wall. (b) Right to Repair. If the Party Wall is damaged or destroyed from any cause, the Owner of either Lot may repair or rebuild the Party Wall to its previous condition, and the Owners of both Lots, their successors and assigns, have the right to the full use of the repaired or rebuilt Party Wall. (c) Maintenance Costs. The Owners of the adjoining Lots share equally the costs of repair, reconstruction, or replacement of the Party Wall, subject to the right of one Owner to call for larger contribution from the other under any rule of law regarding liability for negligence or willful acts or omissions. If an Owner is responsible for damage to or destruction of the Party Wall, that Owner will bear the entire cost of repair, reconstruction, or replacement. If an Owner fails or refuses to pay his share of costs of repair or replacement of the Party Wall, the Owner advancing monies has a right to file a claim of lien for the monies advanced in the Official Public Records of Tarrant County, Texas, and has the right to foreclose the lien as if it were a mechanic's lien. The right of an Owner to require contribution from another Owner under this Section 9.05 is appurtenant to the Lot and passes to the Owner's successors in title. (d) Alterations. The Owner of a Lot sharing a Party Wall may not cut openings in the Party Wall or alter or change the Party Wall in any manner that affects the use, condition, or appearance of the Party Wall to the adjoining Lot. The Party Wall will always remain in the same location as when erected unless otherwise approved by the Owner of each Lot sharing the Party Wall and the ACC. -44- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN I/699746v.3 46145-8 10/22/2013 Page 50 of 57 9.06 Enforcement. The Association and the Declarant will have the right to enforce, by a proceeding at law or in equity, the Restrictions. Failure to enforce any right, provision, covenant, or condition set forth in the Restrictions will not constitute a waiver of the right to enforce such right, provision, covenants or condition in the future. 9.07 Higher Authority. The terms and provisions of this Declaration are subordinate to Applicable Law. Generally, the terms and provisions of this Declaration are enforceable to the extent they do not violate or conflict with Applicable Law. 9.08 Severability. If any provision of this Declaration is held to be invalid by any court of competent jurisdiction, such invalidity will not affect the validity of any other provision of this Declaration, or, to the extent permitted by Applicable Law, the validity of such provision as applied to any other person or entity. 9.09 Conflicts. If there is any conflict between the provisions of this Declaration, the Certificate, the Bylaws, or any Rules adopted pursuant to the terms of such documents, the provisions of this Declaration, the Certificate, the Bylaws, and the Rules, in such order, will govern. 9.10 Gender. Whenever the context so requires, all words herein in the male gender will be deemed to include the female or neuter gender, all singular words will include the plural, and all plural words will include the singular. 9.11 Acceptance by Grantees. Each grantee of Declarant of a Lot or other real property interest in the Property, by the acceptance of a deed of conveyance, or each subsequent purchaser, accepts the same subject to all terms, restrictions, conditions, covenants, reservations, easements, liens and charges, and the jurisdiction rights and powers created or reserved by this Declaration or to whom this Declaration is subject, and all rights, benefits and privileges of every character hereby granted, created, reserved or declared. Furthermore, each grantee agrees that no assignee or successor to Declarant hereunder will have any liability for any act or omission of Declarant which occurred prior to the effective date of any such succession or assignment. All impositions and obligations hereby imposed will constitute covenants running with the land within the Property, and will bind any person having at any time any interest or estate in the Property, and will inure to the benefit of each Owner in like manner as though the provisions of this Declaration were recited and stipulated at length in each and every deed of conveyance. -45- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _1/699746v.3 46145-8 10/22/2013 Page 51 of 57 9.12 Damage and Destruction. (a) Claims. Promptly after damage or destruction by fire or other casualty to all or any part of the Common Area covered by insurance, the Board, or its duly authorized agent, will proceed with the filing and adjustment of all claims arising under such insurance and obtain reliable and detailed estimates of the cost of repair of the damage. Repair, as used in this Section 9.11(x), means repairing or restoring the Common Area to substantially the same condition as existed prior to the fire or other casualty. (b) Repair Obligations. Any damage to or destruction of the Common Area will be repaired unless a Majority of the Board decides within sixty (60) days after the casualty not to repair. If for any reason either the amount of the insurance proceeds to be paid as a result of such damage or destruction, or reliable and detailed estimates of the cost of repair, or both, are not made available to the Association within said period, then the period will be extended until such information will be made available. (c) Restoration. In the event that it should be determined by the Board that the damage or destruction of the Common Area will not be repaired and no alternative Improvements are authorized, then the affected portion of the Common Area will be restored to its natural state and maintained as an undeveloped portion of the Common Area by the Association in a neat and attractive condition. (d) Special Assessment. If insurance proceeds are paid to restore or repair any damaged or destroyed Common Area, and such proceeds are not sufficient to defray the cost of such repair or restoration, the Board will levy a Special Assessment, as provided in Article 6, against all Owners. Additional Assessments may be made in like manner at any time during or following the completion of any repair. (e) Proceeds Payable to Owners. In the event that any proceeds of insurance policies are paid to Owners as a result of any damage or destruction to any Common Area, such payments will be allocated based on Assessment Units and paid jointly to the Owners and the holders of Mortgages or deeds of trust on their Lots. 9.13 No Partition. Except as may be permitted in this Declaration or amendments thereto, no physical partition of the Common Area or any part will be permitted, nor will any person acquiring any interest in the Property or any part seek any such judicial partition unless the Property in question has been removed from the provisions of this Declaration pursuant to Section 11.04 below. This Section 9.13 will not be construed to prohibit the Board from acquiring and disposing of tangible personal property or from acquiring title to real property that may or may not be subject to this Declaration. 9.14 Notices. Any notice permitted or required to be given to any person by this Declaration will be in writing and may be delivered either personally or by mail, or as -46- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 52 of 57 otherwise required by Applicable Law. If delivery is made by mail, it will be deemed to have been delivered on the third (3rd) day (other than a Sunday or legal holiday) after a copy of the same has been deposited in the United States mail, postage prepaid, addressed to the person at the address given by such person to the Association for the purpose of service of notices. Such address may be changed from time to time by notice in writing given by such person to the Association. 9.15 View Impairment. Neither Declarant nor the Association guarantee or represent that any view over and across the Lots, or any open space or Common Area within the Property will be preserved without impairment. Neither the Declarant, the ACC, and the Association shall have no obligation to relocate, prune, or thin trees or other landscaping. The Association (with respect to any Common Area) will have the right to add trees and other landscaping from time to time, subject to Applicable Law. There shall be no express or implied easements for view purposes or for the passage of light and air. 9.16 Safety and Security. Each Owner and Resident of a Lot, and their respective guests and invitees, shall be responsible for their own personal safety and the security of their property within the Property. The Association may, but shall not be obligated to, maintain or support certain activities within the Property designed to promote or enhance the level of safety or security which each person provides for himself or herself and his or her property. However, neither the Association nor Declarant shall in any way be considered insurers or guarantors of safety or security within the Property, nor shall either be held liable for any loss or damage by reason of failure to provide adequate security or ineffectiveness of security measures undertaken. ARTICLE 10 EASEMENTS 10.01 Right of Ingress and Egress. Declarant, its agents, employees and designees will have a right of ingress and egress over and the right of access to the Common Area to the extent necessary to use the Common Area and the right to such other temporary uses of the Common Area as may be required or reasonably desirable (as determined by Declarant in its sole discretion) in connection with the construction and development of the Property. The Property shall be subject to a perpetual non-exclusive easement for the installation and maintenance, including the right to read meters, service or repair lines and equipment, and to do everything and anything necessary to properly maintain and furnish the Community Systems and the facilities pertinent and necessary to the same, which easement shall run in favor of Declarant Declarant shall have the right, but not the obligation, to install and provide the Community Systems and to provide the services available through the Community Systems to any and all Lots within the Property. Neither the Association nor any Owner shall have any interest therein. Any or all of such services may be provided either directly through the Association and paid for as part of the Assessments or directly to Declarant, any affiliate of Declarant, or a third party, by the Owner who receives the services. The Community Systems shall be the -47- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 53 of 57 property of Declarant unless transferred by Declarant, whereupon any proceeds of such transfer shall belong to Declarant. Declarant shall have the right but not the obligation to convey, transfer, sell or assign all or any portion of the Community Systems or all or any portion of the rights, duties or obligations with respect thereto, to the Association or to any Person. The rights of Declarant with respect to the Community Systems installed by Declarant and the services provided through such Community Systems are exclusive, and no other Person may provide such services through the Community Systems installed by Declarant without the prior written consent of Declarant. In recognition of the fact that interruptions in Community Systems services will occur from time to time, no person or entity described above shall in any manner be liable, and no user of any Community System shall be entitled to any refund, rebate, discount or offset in applicable fees, for any interruption in Community Systems services, regardless of whether or not same is caused by reasons within the control of the then -provider of such services. 10.02 Reserved Easements. All dedications, limitations, restrictions and reservations shown on any Plat and all grants and dedications of easements, rights-of-way, restrictions and related rights made by Declarant prior to the Property becoming subject to this Declaration are incorporated herein by reference and made a part of this Declaration for all purposes as if fully set forth herein, and will be construed as being adopted in each and every contract, deed or conveyance executed or to be executed by or on behalf of Declarant. Declarant reserves the right to relocate, make changes in, and additions to said easements, rights-of-way, dedications, limitations, reservations and grants for the purpose of most efficiently and economically developing the Property. 10.03 Utility Easements. Declarant hereby reserves unto itself and Declarant's successors and assigns a perpetual non-exclusive easement over and across the Property for: (i) the installation, operation and maintenance of utilities and associated infrastructure to serve the Property and any other property owned by Declarant; (ii) the installation, operation and maintenance of cable lines and associated infrastructure for sending and receiving data and/or other electronic signals, security and similar services to serve the Property and any other property owned by Declarant; and (iii) the installation, operation and maintenance of, roadways, gates, walkways, pathways and trails, drainage systems, street lights and signage to serve the Property and any other property owned by Declarant. Declarant will be entitled to unilaterally assign the easements reserved hereunder to any third party who owns, operates or maintains the facilities and Improvements described in (i) through (iii) of this Section 10.03. The exercise of the easement reserved herein will not extend to permitting entry into any residence, nor will it unreasonably interfere with the use of any Lot or residence or Improvement constructed thereon. 10.04 Roadway and Utility Easements. Declarant reserves the right to create, locate, relocate, construct, erect, and maintain or cause to be created, located, relocated, constructed, erected, and maintained in and on any portion of the Property then owned by Declarant or any -48- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 54 of 57 streets maintained by the Association, or areas conveyed to the Association, or areas reserved or held as Common Area, roadways, sewer lines, water lines, electrical lines and conduits, and other pipelines, conduits, wires, and any public utility function beneath or above the surface of the ground with the right of access to the same at any time for the purposes of repair and maintenance. 10.05 Subdivision Entry and Fencing Easement. Declarant reserves for itself and the Association, an easement over and across the Property for the installation, maintenance, repair or replacement of certain subdivision entry facilities and fencing which serves the Property. Declarant will have the right, from time to time, to Record a written notice which identifies the subdivision entry facilities fencing to which the easement reserved hereunder applies. Declarant may designate all or any portion of the subdivision entry facilities and/or fencing as Common Area by Recorded written notice. The exercise of the easements reserved hereunder will not extend to permitting entry into any residence, nor will it unreasonably interfere with the use of any Lot or residence or Improvement constructed thereon. 10.06 Landscape, Monumentation and Signage Easement. Declarant hereby reserves an easement over and across the Property for the installation, maintenance, repair or replacement of landscaping, monumentation and signage which serve the Property and any other property owned by Declarant. Declarant will have the right, from time to time, to Record a written notice which identifies the landscaping, monumentation, or signage to which the easement reserved hereunder applies. Declarant may designate all or any portion of the landscaping, monumentation, or signage easement as Common Area. 10.07 Declarant as Attorney in Fact. To secure and facilitate Declarant's exercise of the rights reserved by Declarant pursuant to the terms and provisions of this Declaration, each Owner, by accepting a deed to a Lot and each Mortgagee, by accepting the benefits of a Mortgage against a Lot, and any other third party by acceptance of the benefits of a mortgage, deed of trust, mechanic's lien contract, mechanic's lien claim, vendor's lien and/or any other security interest against any Lot, will thereby be deemed to have appointed Declarant such Owner's, Mortgagee's, and third party's irrevocable attorney-in-fact, with full power of substitution, to do and perform, each and every act permitted or required to be performed by Declarant pursuant to the terms of this Declaration. The power thereby vested in Declarant as attorney-in-fact for each Owner, Mortgagee and/or third party, will be deemed, conclusively, to be coupled with an interest and will survive the dissolution, termination, insolvency, bankruptcy, incompetency and death of an Owner, Mortgagee and/or third party and will be binding upon the legal representatives, administrators, executors, successors, heirs and assigns of each such party. The aforesaid power shall be vested in Declarant, its successors and assigns, for a period of twenty-five (25) years from the date the first Lot is conveyed to an individual purchaser, or until the expiration or termination of the Development Period, whichever occurs first. Declarant hereby reserves for itself, its successors and assigns the right to execute on behalf of each Owner, Mortgagee, and third party claiming a legal or equitable interest in the -49- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _I/699746v.3 46145-8 10/22/2013 Page 55 of 57 Common Area, any such agreements, documents, amendments or supplements to the Restrictions which may be required by any institutional or governmental lender, purchaser, insurer or guarantor of mortgage loans (including, for example, the Federal Home Loan Mortgage Corporation) designated by Declarant or by any governmental or quasi -governmental agency having regulatory jurisdiction over the Common Area or by any title insurance company selected by Declarant to insure title to any portion of the Common Area. ARTICLE 11 DEVELOPMENT RIGHTS 11.01 Development by Declarant. It is contemplated that the Property will be developed pursuant to a plan, which may, from time to time, be amended or modified. Declarant reserves the right, but will not be obligated, to create and/or designate Lots and Common Areas and to subdivide with respect to any of the Property pursuant to the terms of this Section 11.01, subject to any limitations imposed on portions of the Property by any applicable Plat. These rights may be exercised with respect to any portions of the Property. As each area is developed or dedicated, Declarant may designate the use, classification and such additional covenants, conditions and restrictions as Declarant may deem appropriate for that area. 11.02 Special Declarant Rights. Notwithstanding any provision of this Declaration to the contrary, at all times, Declarant will have the right and privilege: (i) to erect and maintain advertising signs (illuminated or non -illuminated), sales flags, other sales devices and banners for the purpose of aiding the sale of Lots in the Property; (ii) to maintain Improvements upon Lots as sales, model, management, business and construction offices; and (iii) to maintain and locate construction trailers and construction tools and equipment within the Property. The construction, placement or maintenance of Improvements by Declarant will not be considered a nuisance, and Declarant hereby reserves the right and privilege for itself to conduct the activities enumerated in this Section 11.02 until two (2) years after expiration or termination of the Development Period. 11.03 Addition of Land. Declarant may, at any time and from time to time, add additional lands to the Property. Upon the filing of a notice of addition of land, such land will be considered part of the Property for purposes of this Declaration, and such added lands will be considered part of the Property subject to this Declaration and the terms, covenants, conditions, restrictions and obligations set forth in this Declaration, and the rights, privileges, duties and liabilities of the persons subject to this Declaration will be the same with respect to such added land as with respect to the lands originally covered by this Declaration. To add lands to the Property, Declarant will be required only to Record a notice of addition of land containing the following provisions: -50- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN 1/699746v.3 46145-8 10/22/2013 Page 56 of 57 (a) A reference to this Declaration, which reference will state the document number or volume and initial page number of the Official Public Records of Tarrant County wherein this Declaration is Recorded; (b) A statement that such land will be considered Property for purposes of this Declaration, and that all of the terms, covenants, conditions, restrictions and obligations of this Declaration will apply to the added land; and (c) A legal description of the added land. 11.04 Withdrawal of Land. Declarant may, at any time and from time to time, reduce or withdraw from the Property, and remove and exclude from the burden of this Declaration and the jurisdiction of the Association any portion of the Property. Upon any such withdrawal and renewal this Declaration and the covenants conditions, restrictions and obligations set forth herein will no longer apply to the portion of the Property withdrawn. To withdraw lands from the Property hereunder, Declarant will be required only to Record a notice of withdrawal of land containing the following provisions: (a) A reference to this Declaration, which reference will state the document number or volume and initial page number of the Official Public Records of Tarrant County wherein this Declaration is recorded; (b) A statement that the provisions of this Declaration will no longer apply to the withdrawn land; and (c) A legal description of the withdrawn land. 11.05 Assignment of Declarant's Rights. Notwithstanding any provision in this Declaration to the contrary, Declarant may, by written instrument, assign, in whole or in part, any of its privileges, exemptions, rights and duties under this Declaration to any person or entity and may permit the participation, in whole, in part, exclusively, or non -exclusively, by any other person or entity in any of its privileges, exemptions, rights and duties hereunder. [SIGNATURE PAGE FOLLOWS] -51- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSUN 1/699746v.3 46145-8 10/22/2013 Page 57 of 57 EXECUTED to be effective on the date this instrument is Recorded. DECLARANT: MAGUIRE PARTNERS — SOLANA LAND, L.P., a Texas limited partnership i By. �� Ga! `✓jQ Printed Name: _ f Title: THE STATE OF TEXAS COUNTY OF This instrument 4 was acknowledged beforeh me � �^on� this day of 201 by (�(�Q 4 lA�Q / I li)Ei�--i QA,1 of MAGUIRE PARTNERS— SOLANA LAND, L.P., a Texas limited partnership, on behalf of said limited partnership. iAAA (seal),a'".;,¢N (AURA L WAYLAND Notary Pu lic, State of Texas MY Commission Expires July 14, 2016 -52- GRANADA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AUSTIN _1/699746v.3 46145-8 10/22/2013 Page 1 of 28 )215004495 11812015 3749 PM S 28 Fee: $124.00 Submitter: XEROX COMMERCIAL SOLUTIONS lectronicallyRecordedbyTarrantCountyClerkinOfficialPublicRecords Mary Louise Garcia AFTER RECORDING RETURN TO: Robert D. Burton, Esq. Winstead PC 401 Congress Ave., Suite 2100 Austin, Texas 78701 Email: rburtonowinstead.com GRANADA DESIGN GUIDELINES Adopted: MAGUIRE PARTNERS — SOLANA LAND, L.P., a Texas limited partnership By: r . it •> Printed Name: Title: THE STATE OF TEXAS § COUNTY OF W -A00 § 'flus iiastrug ent_ was acknowledged before me this q day of 201by of MAGUIRE PARTNERS — SOLANA LAND, L.P., a Texas limited partnership, on behalf of said limited part rsl ' . LAURA L WAYLAND My Commission Expires / duly 14, 2016 Notary Public Signature Adopted by MAGUIRE PARTNERS — SOLANA LAND, L.P., a Texas limited partnership, in accordance with Granada Declaration of Covenants Conditions and Restrictions recorded in under Document No. () 21500 4 (4l„ Official Public Records of Tarrant County, Texas (the "Declaration"). In accordance with Section 7.02(c) of the Declaration, these Design Guidelines may be amended from time to time by the ACC (as defined in the Declaration). 2 GRANADA DESIGN GUIDELINES AUSTIN 1/699747v.4 46145-8 10/22/2013 Page 2 of 28 Introduction Any notice or information required to be submitted to the ACC under these Design Guidelines hereunder will be submitted the ACC at 1221 North I -35E, Suite 200, Carrollton, Texas 75006, c/o Granada ACC, Phone: 469-892-7200, Fax: 469-892-7202. Background Granada is a master planned community located in Tarrant County, Texas. Lots 1-84, Granada, a subdivision in Tarrant County Texas, according to the plat recorded in I> Z l 1 y Official Public Records of Tarrant County, Texas (the "Property"), are subject to the terms and provisions of that certain Granada Declaration of Covenants Conditions and Restrictions recorded in the Official Public Records of Tarrant County, Texas (the "Declaration"). Capitalized terms used but not defined in these Design Guidelines shall have the meaning subscribed to such terms in the Declaration. ACC and Review Authority Article 7 of the Declaration includes procedures and criteria for the construction of improvements within the Granada community. Section 7.01 of the Declaration provides that no Improvements may be erected, placed, constructed, painted, altered, modified or remodeled on any Lot, and no Lot may be re -subdivided or consolidated with other Lots or Property, by anyone other than Declarant, without prior written approval of the ACC. The ACC consists of two (2) members who have been appointed by Maguire Partners — Solana Land, L.P., a Texas limited partnership (the "Declarant") and one (1) member who has been appointed by the Town Manager (the "Town Manager") of the Town of Westlake, Texas (the "Town"). As provided in Article 7 of the Declaration, the Declarant has a substantial interest in ensuring that Improvements within Granada maintain and enhance Declarant's reputation as a community developer and do not impair Declarant's ability to market and sell all or any portion of the community, and, as a consequence thereof, the two (2) members of the ACC appointed by Declarant act solely in Declarant's interest and shall owe no duty to any other Owner or the Granada Residential Community, Inc. (the "Association"). The Town has a substantial interest in ensuring that the Improvements within Granada are consistent with the Town's long-term vision, and, as a consequence thereof, the one (1) member of the ACC appointed by the Town Manager acts solely in the Town's interest and shall owe no duty to any other Owner or the Association. Governmental Requirements Governmental ordinances and regulations are applicable to all Lots within Granada. It is the responsibility of each Owner to obtain all necessary permits and inspections. Compliance with these Design Guidelines is not a substitute for compliance with the applicable ordinances and regulations. Please be advised that these Design Guidelines do not list or describe each requirement which may be applicable to a Lot within Granada. Each Owner is advised to review all encumbrances affecting the use and improvement of their Lot prior to submitting plans to the ACC for approval. Furthermore, approval by the ACC should not be construed by the Owner that any Improvement complies with the terms and GRANADA DESIGN GUIDELINES AUSTIN 1/699747v.4 46145-8 10/22/2013 Page 3 of 28 provisions of all encumbrances which may affect the Owner's Lot. Certain encumbrances may benefit parties whose interests are not addressed by the ACC. The ACC shall bear no responsibility for ensuring plans submitted to the ACC comply with Applicable Law. It is the responsibility of the Owner to secure any required governmental approvals prior to construction on such Owner's Lot. Interpretation In the event of any conflict between these Design Guidelines and the Declaration, the Declaration shall control. Capitalized terms used in these Design Guidelines and not otherwise defined in this document shall have the same meaning as set forth in the Declaration. Amendments The ACC may amend these Design Guidelines. All amendments shall become effective upon recordation in the Official Public Records of Tarrant County, Texas. Amendments shall not apply retroactively so as to require modification or removal of work already approved and completed or approved and in progress. It is the responsibility of each Owner to ensure that they have the most current edition of the Design Guidelines and every amendment thereto. Architectural Review Process Submittals Requests for approval of proposed construction, landscaping, or exterior modifications must be made by submitting an application in the form attached hereto as Attachment 1. Timing The ACC will attempt to review all applications and submittals within thirty (30) days. Please allow at least thirty (30) days prior to installation or construction for the ACC to review the related applications. Please be advised that in the event that any plans and specifications are submitted to the ACC and the ACC fails to either approve or reject such plans and specifications for a period of thirty (30) days following such submission, the plans and specifications will be deemed disapproved. Responsibility for Compliance An applicant is responsible for ensuring that all of the applicant's representatives, including the applicant's architect, engineer, contractors, subcontractors, and their agents and employees, are aware of these Design Guidelines and all requirements imposed by the ACC as a condition of approval. Inspection Upon completion of each phase of approved work, the Owner must notify the ACC. The ACC should be notified after the stake out of the building, after completion of framing, and after completion of the approved work. The ACC may, but shall in no event be obligated to, inspect the work at any time to verify conformance with the approved submittals. Furthermore, approval by the ACC should not be construed by the Owner that any Improvement complies with the terms and provisions of any ordinances, requirements, regulations or encumbrances which may affect the Owner's Lot. 4 AUSTIN _1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Page 4 of 28 Architectural and Aesthetic Standards Plan Repetition The ACC may, in its sole and absolute discretion, deny a plan or elevation proposed for a particular Lot if a substantially similar plan or elevation exists on a Lot in close proximity to the Lot on which the plan or elevation is proposed. The ACC may adopt additional requirements concerning substantially similar plans or elevations constructed in proximity to each other. For Example: • Plan can be repeated every fifth Lot (example: Plan A, Plan B, Plan C, Plan D, Plan E and Plan A). Plan A Plan B Brick B Plan C Brick C Plan D Plan E Plan A Brick A Plan G Brick D Plan H Plan B Plan C Plan D Plan F Across the Street: Same plan cannot be placed on a Lot across the street or diagonal from any other plan (example above: Plan B). Brick Color, Masonry Stone, and Wood Trim Repetition The ACC may, in its sole and absolute discretion, deny proposed brick, masonry or wood trim for a particular Lot if substantially similar brick, masonry or wood trim exists on a Lot in close proximity to the Lot an which the brick, masonry or wood trim is proposed. The ACC may adopt additional requirements concerning substantially similar brick, masonry or wood trim constructed in proximity to each other. For Example: • Similar brick, masonry or wood trim can be repeated every fifth Lot (example: Brick A, Brick B, Brick C, Brick D, Brick E and Brick A). Brick A Brick B Brick C Brick D Brick E Brick A Brick D Brick C Brick H Brick B Brick F Brick G • Across the Street: Some brick or masonry cannot be placed on a Lot across the street or diagonal from any other brick or masonry (example above: Brick B). GRANADA DESIGN GUIDELINES AUSTIN _1/699747v.4 46145-8 10/22/2013 Page 5 of 28 Building Materials • All building materials must be approved in advance by the ACC, and only new building materials (except for used brick) shall be used for constructing any Improvements. • All projections from a dwelling or other structure, including but not limited to chimney flues, vents, gutters, downspouts, utility boxes, porches, railings and exterior stairways must, unless otherwise approved by the ACC, be coordinated with the overall design of the Improvement from which they project. • No highly reflective finishes (other than glass, which may not be mirrored) shall be used on exterior surfaces (other than surfaces of hardware fixtures), including, without limitation, the exterior surfaces of any Improvements. Masonry Requirements, Exterior Walls and Finishes • The exterior walls shall have horizontal and vertical articulation or architectural features on all elevations as approved by the ACC. • Unless otherwise approved in advance and in writing by the ACC, the exterior walls of each primary residence shall be constructed of at one -hundred percent (100%) masonry, exclusive of roofs, eaves, soffits, windows, doors, gables, garage doors and trim work. For purposes of this section brick, stone, cast stone, and stucco are considered masonry. Brick shall be limited to thirty percent (30%) of the exterior walls. Stucco shall be a minimum of 3/4 of an inch thick and limited to thirty (30%) of the exterior walls on homes which are not of Tuscan or Mediterranean style. Up to one -hundred percent (100%) stucco may be used on the exterior walls of Tuscan or Mediterranean style homes. The ACC, in its sole discretion, will determine whether or not a home is of Tuscan or Mediterranean style. Wood use shall be very minimal and only as an accent. • Unless otherwise approved by the ACC, siding is prohibited for use on exterior walls of a primary residence. Unless otherwise approved by the ACC, exterior wall materials shall make changes at inside corners only. Unless otherwise approved by the ACC, every elevation shall have a minimum of two wall materials or textures. Single wall covering materials may be approved by the ACC if the architectural features, wall offsets, and enhanced trim around openings are utilized to limit continuous blank wall areas. • Unless otherwise approved by the ACC, walls shall not exceed tivrty feet (30') in length without an offset of two feet (2') or more unless the wall is broken up by architectural elements such as ornate masonry work, changes in construction material, or openings for windows or doors that are trimmed and recessed a minimum of three inches (3"). 6 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Page 6 of 28 • The exterior materials must be authentic and not artificial as reasonably determined by the ACC. There should generally not be more than three exterior materials (including exterior walls, window/door surrounds, accents, etc.). The ACC will evaluate whether additional materials shall be allowed on a case by case basis. • Colors should be appropriate to the architectural style chosen. Colors should be non-invasive and subdued rather than bold and bright. All exterior materials should comply with one color palate, approved by the ACC, including all exterior paint, brick/stone, trim, mortar, window mullions, balusters, columns, etc.). Color palates should consist of natural earth tone colors, i.e., medium to dark greens, browns, and tans. • Unless otherwise approved by the ACC, all chimneys shall be 100% masonry to match the materials used on home. No wood or masonry siding of any kind shall be used on chimneys. • No foundation of a residence may: be exposed more than twenty-four inches (24") above final grade along: (a) the front elevation of the residence visible from any street; or (b) each side elevation of the residence visible from any street. If the exterior of the elevation adjacent to the exposed foundation is constructed of stucco, the ACC will have the authority to require the use of stone, in a color approved in advance by the ACC, to conceal the exposed portion of the foundation. In the event of a dispute as to the front or side elevation of a residence which is visible from any street, the determination of the ACC shall be final and conclusive. • All materials for courtyard walls and fencing must be approved in advance by the ACC. Lot Coverage The footprint of the main level of each single family residence constructed on a Lot shall not exceed thirty -percent (30%) of the entire area of the Lot. Footprint is defined as all areas that are contained within four walls and garages (excludes open porches, patios, porte-cocheres, or other unenclosed areas). Square Footage Requirements Unless otherwise approved by the ACC, the minimum living square footage for each residence, exclusive of open or screened porches, terraces, patios, decks, driveways, and garages is three thousand (3,000) square feet for single -story homes and four thousand (4,000) square feet living space for two-story homes. Minimum Home Width Unless otherwise approved in advance and in writing by the ACC, the minimum width for each residence is seventy feet (70'). 7 AUSTIN 1/699747v,4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Page 7 of 28 Aesthetic Appeal The ACC may disapprove the construction or design of a home on purely aesthetic grounds. Any prior decisions of the ACC regarding matters of design or aesthetics will not be considered to establish a precedent for any future decision of the ACC. Siting/Setbacks Unless otherwise approved by the unanimous consent of the ACC, the following setbacks shall apply to each Lot: • Front Lot line: 40 feet • Rear Lot line: 40 feet • Side Lot line: 20 feet The ACC, by unanimous consent, may: (i) approve a reduction of the required front yard setback or may require an increase in the required front yard setback by a maximum of ten (10) feet if, in the sole opinion of the ACC, the increase is needed to avoid monotony or to accommodate unique site conditions including the preservation of old growth trees; (ii) approve a reduction of the required rear yard setback by a maximum of ten feet (10') if, in the sole opinion of the ACC, the reduction is needed to avoid monotony or to accommodate unique site conditions including the preservation of old growth trees; or (iii) approve a reduction of the required side yard setback by a maximum of five feet (5') if, in the sole opinion of the ACC, the reduction is needed to avoid monotony or to accommodate unique site conditions including the preservation of old growth trees. Notwithstanding any provision to the contrary in these Design Guidelines, eves, steps, and open porches will not be considered part of the residence for the purpose of the setback requirement hereunder; however, no portion of any Improvement will be permitted to encroach upon another Lot. The ACC must approve the encroachment of any flatwork, i.e. driveway, porch, etc. over the side building setbacks. The ACC reserves the right to stipulate additional building or Improvement setbacks attributable to any Lot. The ACC further reserves the right to grant variances to the setbacks set forth herein in accordance the Declaration. Temporary/Accessory Structures Owners will generally be permitted to erect one (1) accessory structure on their Lot provided the accessory structure such as a pool cabanagarden building storage building or home office is approved in advance by the ACC. In no event will the total square footage of any approved accessory structure be interpreted to reduce the minimum square footage requirements of the principal residential structure as set forth in these Design Guidelines. GRANADA DESIGN GUIDELINES AUSTIN 1/699747v.4 46145-8 10/22/2013 Unless otherwise approved in advance and in writing by the ACC, an accessory structure: (i) must be constructed of the same exterior materials as the main residence constructed on the Lot; (ii) must utilize roof materials that match the roof materials incorporated into the principal residential structure constructed on the Lot; (iii) have a pitched roof of the same pitch as the principal residential structure constructed on the Lot; (iv) use paint which matches the color of the trim of the principal residential structure constructed on the Lot; (v) must utilize shingles which are the same as on the principal residential structure constructed on the Lot; and (vi) may not be located nearer than five (5) feet from an interior (side) Lot line. Temporary storage structures also known as "pods' are allowed with the prior written approval of the ACC office provided that: • Structure is located in the driveway of the Lot; and • Structure is not placed on any Lot for more than seven (7) days. The ACC shall be entitled to determine, in its sole and absolute discretion, whether a structure or shed on any Lot complies with the foregoing requirements relating to size, height, fence enclosure and construction materials. No accessory structure will be approved unless a principal residential structure has been constructed on the Lot or the accessory structure is being constructed at the same time as the principal residential structure. The ACC may adopt additional requirements for any accessory structure on a case by case basis as a condition to approval. All structures on a Lot must reflect consistently the same architectural style and materials as the main residence constructed on the Lot. No temporary or accessory structure may be erected without the advance approval by the ACC. Prohibited Elements The following architectural elements are prohibited within Granada unless expressly approved in writing by the ACC: Roofs • Excessively pitched roofs. • Mansard, gambrel or chalet roofs. • Flat roofs. • Roofs that are too steep or too shallow for the style of the home, as determined by the ACC. • Shed roofs except as incidental to the main roof. • Composition shingles. GRANADA DESIGN GUIDELINES AUSTIN 1/699747v,4 46145-8 10/22/2013 Page 9 of 28 Design Elements • Unnecessarily prominent chimneys and other roof penetrations. • Vents or skylights facing the street. • White or bubble skylights. • Mirrored glass. • Faux mullion windows Materials and Colors • Wood siding (wood siding accents may be permitted if approved by the ACC). • Cultured stone unless approved by the ACC. • Gray brick. • Block masonry Building Height Unless otherwise approved in advance by the ACC, no building or residential structure may exceed two and one-half stories or twenty-eight feet (28') in height as measured from the finished lot grade to the midpoint of the highest pitched or hipped roof above. The measurement locations will be chosen by the ACC based upon which points are most restrictive. The height limitations imposed above shall not apply to: (i) chimneys and vent stacks, cupolas, or other architectural features that are not intended for occupancy or storage; or (ii) flag poles and similar devices. Views are neither guaranteed, preserved, nor protected within Granada. Room Additions Any room additions must be approved in writing by the ACC. Additions to a residence will be considered for approval by the ACC if they meet the following: • All materials used snatch those of the principal residential structure, including masonry, windows, and paint color, shingles, etc. • Sunrooms will be considered. 10 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Page 10 of 28 • Screened Porches will be considered on a case by case basis and must meet the following minimum acceptable standards: • The porch and related improvements must be compatible with the architectural elements of the principal residential structure. Paint colors and materials must match those of the principal residential structure. • Design should reflect consideration for any adverse impact of neighboring properties. • Screened porches shall be located in back yard only. The screened porch shall not encroach on any easement or building line. • Screened porch shall be attached to the principal residential structure. • Free standing screened porches are not permitted. • Supplemental landscaping may be required as part of the ACC review. • The roof of screened porch shall be solid decking shingled to match the principal residential structure. Greenbelt/Open Space Lots "Greenbelt/Open Space Lots" shall refer to Lots/land that has not been developed, whether it is owned by the Declarant, a Homebuilder, the Association or another Owner and is not intended for use as a single family Lot. These areas are to be considered as private property and trespassing is prohibited. Lots adjacent to Greenbelt/Open Space Lots must comply with all of the following requirements: • The boundary between the Lot and the Greenbelt/Open Space Lots must be fenced in a manner approved in advance by the ACC. • The fence must be 6 feet in height and be constructed of "pyrite brown" wrought iron or other decorative metal of a color and style specified by the ACC. • No gate will be permitted into a Greenbelt/Open Space Lot. • Backyards must be fully sodded with at least two 3" caliper hardwood trees installed by the Owner. • Sheds or outbuildings will not be permitted on any Lot adjacent to Greenbelt/Open Space Lots. • At no time are Greenbelt/Open Space Lots to be used for ingress/egress or storage. • Greenbelt/Open Space Lots should remain in their natural state. No removal or trimming of trees is permitted. Building Massing Primary massing of a single family residence constructed on a Lot should be a reflection of the primary interior rooms within the single family residence. Secondary massing should be a reflection of the 11 AUSTIN _1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Page 11 of 28 secondary interior rooms within the single family residence. The concept is to design homes with simple room lines that reflect the interior spaces that are being housed. Roofs and Chimneys The pitch, color and composition of all roof materials must be approved in writing by the ACC. Roof vents and other penetrations shall be as unobtrusive as possible and must match the principal color of the roof unless approved in advance by the ACC. • Accepted Roof Pitch: Roof slope for the main structure and garage shall be approved in advance by the ACC. Roofs must contain different pitches as determined by the ACC. • Roof Desi et : Roof design shall include offsets and dormers to break up large expanses of roof area. Accepted Roof Materials: Roof materials allowed are concrete tile clay tile, natural slate, standing seam metal roof (allowed only if made of copper, paint grip galvanized unpainted and as accent roof projections not exceeding 200 square feet) or other materials with similar materials if approved unanimously by the ACC. No more than two houses on adjacent lots have the same roof pitch unless at least one roof has multiple pitches. Materials should be appropriate to the design style chosen. For stucco style homes, a barrel tile roof shall be required. Roofing materials must be submitted for approval prior to installation and labeled on all submitted elevations. Acceptable colors are natural tones. In addition, roofs of buildings may be constructed with "Energy Efficiency Roofing" with the advance written approval of the ACC. For the purpose of the Section, "Energy Efficiency Roofing" means shingles that are designed primarily to: (a) be wind and hail resistant; (b) provide heating and cooling efficiencies greater than those provided by customary composite shingles; or (c) provide solar generation capabilities. The ACC will not prohibit an Owner from installing Energy Efficient Roofing provided that the Energy Efficient Roofing shingles: (i) resemble the shingles used or otherwise authorized for use within the community; (ii) are more durable than, and are of equal or superior quality to, the shingles used or otherwise authorized for use within the community; and (iii) match the aesthetics of adjacent property. An Owner who desires to install Energy Efficient Roofing will be required to comply with the architectural review and approval procedures set forth the Restrictions. In conjunction with any such approval process, the Owner should submit information which will enable the ACC to confirm the criteria set forth in this Section. Any other type of roofing material shall be permitted only with the advance written approval of the ACC. Mechanical Equipment: All mechanical equipment and pool equipment shall be complete screened from view from adjacent properties or right-of-way. Screening may include landscaping provide the plant sizes are sufficient to provide seventy-five percent (75%) screening. Vents: Plumbing vents should be minimally visible from the street as determined by the ACC. If there must be a vent visible to the street then it should blend in color with the roof. 12 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Page 12 of 28 In -House Sprinkler Systems All single family residences constructed on a Lot must contain in-house sprinkler systems as required by the Town of Westlake. Exterior Doors and Windows Acceptable Windows: • All windows must be wood. All window brands must be submitted to the ACC for approval prior to installation. • All windows on front elevation of residence must have exterior mullions or muntins made of wood. Unacceptable Windows: • Aluminum. • Skylights that are visible from the street Window Details: Doors: Windows may not be of reflective or darkly tinted glass. All windows, other than those within court yards, must be recessed a minimum of 3" and not "flush" to the exterior of the residence. All doors shall be recessed a minimum of 3" and not "flush" to show wall depth. Doors with muntins should have them placed on the exterior of the glass panes rather than being "trapped" inside them. Primary entry doors shall vary in design from house to house. If the same door is used on houses within the same block, trim, accents or other architectural enhancements shall be used to create a diverse appearance and maintain the appearance of a custom home neighborhood. Garages No carports shall be placed, erected, constructed, installed or maintained on a Lot. All garages shall be approved in advance of construction by the ACC. The Improvements on each Lot must contain one or more private enclosed garages, with garage parking capable at all times of housing at least three (3) standard size automobiles. Each garage shall have a minimum width, as measured from inside walls, of 9.6' per car and a minimum depth for each car of 20'. Each three (3) car garage shall have a minimum width of sixty feet (60') for the 3 garage door front. A minimum of a 3 garage parking spaces and 2 off street parking spaces shall be provided for each home. All garage doors shall be made of sectional wood or be wood -clad. Aluminum and fiberglass doors are prohibited. Garage doors shall be recessed a minimum of 6" to create more wall depth and lessen the focus on the garage door. Garage doors shall be placed at right angles to the street where possible. If this is not possible then special approval must be given by the ACG The ACC will take into account the 13 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Page 13 of 28 size/shape of the Lot and surrounding landscape. Front facing doors are allowed if located further back on the Lot than the side -entry garage portion and are in a motor court setting behind gate that extends over a driveway. Garages may contain appropriately sized storage rooms, recreational workshops and tool rooms, or servants quarters or guest quarters, if approved in advance by the ACC. Except with respect to detached garages, interior walls of all garages must be finished (i.e., taped, bedded and painted, at a minimum). Each garage shall have garage doors that are wired so as to be operated by electric door openers. The orientation of the opening into a garage (Le., side -entry or front -entry) must be approved in advance by the ACC. All garage doors shall remain closed at all times, save and except for the temporary opening of same in connection with the ingress and egress of vehicles and the loading or placement and unloading, or removal of other items customarily kept or stored therein, when a person is in the garage or engaged in yard work, or there is another activity occurring on the Lot which is reasonably facilitated by an open garage door. No garage shall be converted to another use (eg., living space) without the substitution, on the Lot involved, of another garage meeting the requirements of this section, and the approval of the ACC, and use of parking space in a garage for work areas or storage (including boxes, toys, exercise equipment, furniture; or work benches) to the exclusion of one or more vehicles is strictly prohibited. Driveways, Sidewalks and Parking The design of all driveways must be approved in advance by the ACC. All driveways, sidewalks, and parking areas shall be surfaced with concrete, stone, or pavestone. Concrete shall be exposed aggregate, salt finish or stamped and stained. All driveways, sidewalks and parking areas shall be a minimum of one foot (P) from any adjacent property line. The design of all parking areas should strive to minimize public view of any vehicles. Driveways must permit entry by standard mid-size vehicles without "bottoming out" in the transition area between the curb and property line as wells as the driveway area between the property line and the garage. If the driveway is raised significantly above finished grade (which will be determined by the ACC is its sole and absolute discretion), the exposed sides of the driveway must be screened with landscaping approved in advance by the ACC. Arbors/Pergola/Patio Covers All arbors, pergolas and patios covers shall be approved in advance of construction by the ACC. Arbors, pergolas and patio covers must meet the following: 14 AUSTIN _1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Page 14 of 28 • Shall not exceed 10' in height. • Be of cedar or a wood that is painted to match the principal residential structure constructed on the Lot (all other materials will be reviewed by the ACC on a case by case basis.) • If roof is solid cover the shingles must match the principal residential structure constructed on the Lot. • Lattice on the arbor will be considered by the ACC on a case by case basis. • Support columns should match the architectural character of the principal residential structure constructed on the Lot. • Approved stain color is Behr Natural 6501. Behr brand is not required, but color should match. Decks All decks shall be approved in advance of construction by the ACC. Backyard deck additions must meet be of cedar or a wood that is painted or stained to match the principal residential structure constructed on the Lot (all other materials will be reviewed on a case by case basis by the ACC). Unless otherwise approved by the ACC, the maximum deck height should not exceed more than 18" above the highest surrounding grade. Mailboxes All mailboxes in the property shall be of a design consistent to the design attached hereto as Attachment 2 and the United States Postal Service regulations. Exterior Lighting THE OBJECTIVE OF THE REGULATION OF OUTDOOR LIGHTING IS TO PRESERVE THE NIGHTIME DARK SKY BY MINIMIZING THE AMOUNT OF EXTERIOR LIGHTING. TO UTILIZE LOW INTENSITY INDIRECT LIGHT SOURCES TO THE EXTENT REQUIRED FOR SAFETY AND SUBTLE DRAMA. TO ACHIEVE OUTDOOR LIGHTING OF PLANT MATERIALS WITH HIDDEN LIGHT SOURCES. THE TOWN HAS A "DARK SKY" PHILOSOPHY AND HAS ADDITIONAL OUTDOOR LIGHTING REGULATIONS IN ITS CODE OF ORDINANCES. All exterior lighting must be approved in advance by the ACG Exterior lighting will be kept to a minimum and shall be subdued and indirect but consistent with good security practices. Such illumination shall be designed and installed so as to light only landscaping, driveway areas and walkways upon a Lot. Indirect sources and horizontal cut-off fixtures are recommended to reduce glare and provide general ambient light. Soffit or tree lights must be shielded or directed towards vegetation so as to eliminate glare and source visibility. Exterior lighting shall follow dark sky design guidelines. 15 GRANADA DESIGN GUIDELINES AUSTIN 1/699747v.4 46145-8 10/22/2013 Page 15 of 28 No exterior light whose direct source is visible from a street or neighboring property or which produces excessive glare to pedestrian or vehicular traffic will be allowed. Nuisance lighting and or glare must be avoided. Up -lighting shall be limited to lighting landscaping elements and shall be limited to 25 watt incandescent or equivalent lumens. Building walls shall not be illuminated and light from landscape lighting may not illuminate building walls higher than four feet (4') above grade. Except as specifically allowed by the Town's Unified Development Code, floodlights are prohibited. All light sources must be fully shielded from view from adjacent property or right-of-ways. Light sources of 25 watts incandescent or equivalent may be shielded with frosted or opaque glass. Use of other than white or color corrected high intensity lamps and exterior lights will not be allowed. Sodium, mercury vapor, or bare HID yard lights are not allowed. Exterior Holiday Decorations Lights or decorations may be erected on the exterior of the principal residential structure in commemoration or celebration of publicly observed holidays provided that such lights or decorations do not unreasonably disturb the peaceful enjoyment of adjacent Owners. All lights and decorations must not be permanent fixtures of the principal residential structure without prior written approval of the ACC and shall be removed within thirty (30) days after the holiday has ended. Christmas decorations or lights may not be displayed prior to November 15. Air -Conditioning and Other Mechanical Equipment No air-conditioning apparatus may be installed on the ground in front of the principal residential structure or on the roof of the principal residential structure unless screened in a manner approved by the ACC. Ground level air conditioning units shall be installed at street level only. All mechanical equipment, including air-conditioning equipment, shall be located in a side or rear yard only and shall not be visible from streets or Common Areas. No window air-conditioning apparatus or evaporative cooler may be attached to any front wall or front window of the principal residential structure or at any other location where it would be visible from any street, any other Lot or any Common Area. POOL, SPA EQUIPMENT MUST BE LOCATED BEHIND WALLS OR SCREENED FROM VIEW WITH LANDSCAPE TO CONTAIN NOISE. Barbecue Grills Freestanding barbecue grills are permitted only if they are stored and used in the rear yard space of the Lot that is not visible from the street. 16 AUSTIN_1/699747vA 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Page 16 of 28 Landscape Guidelines Detailed landscape plans for each Lot may be submitted to the ACC for consideration after construction of the principal residential structure thereon has begun, so long as such submission occurs at least ninety (90) days before completion of the residence. Upon written request, however, the ACC may waive the requirement of landscape plans for any Lot if the Hornebuiider uses plans previously approved by the ACC for another Lot. There shall be no revisions made to approved plans without submission to, and approval by, the ACC of the revised plans. All introduced vegetation shall be trees, shrubs, vines, ground covers, seasonal flowers or sodded grassed which are commonly used in North Central Texas for landscaping purposes and which are approved by the ACC. An approved list of plants and turf is set forth on Attachment 3. Landscaping in accordance with the approved plans shall be installed within ten (10) days after issuance of a certificate of occupancy with respect to the principal residential structure. Extensions to the time limit may be granted by the ACC for up to an additional thirty (30) days on a case by case basis. The approved plans shall include permanent sodded grass or "ground cover" in all sodded areas. Winter rye shall be considered a temporary measure to reduce soil erosion through the winter season, and shall be completely removed and replaced with sodded grass according to the approved plans. Each Lot shall be landscaped, at a minimum, with: (i) full sodded front, side and backyards yards, (ii) the following number of hardwood shade trees in the front yard of each Lot --two (2) per Lot on all Lots other than corner Lots and four (4) per corner Lot (with two (2) in the front portion of the Lot, and two (2) in the side of the Lot adjacent to the street), and ten (10) shrubs sized five gallons or more. The hardwood shade trees required in the front yard of each Lot shall be no smaller in size than 4" caliper. Lots that have rear yards facing Dove Road or FM 1935 shall have a minimum of two (2) trees with at least a four inch (4") caliper and two (2) trees with at least a two inch (2") caliper in each rear yard. This requirement may be waived with the unanimous written consent of the ACC. After installation, landscaping (including temporary landscaping) shall be properly maintained at all times. Any Owner who wishes to plant one or more gardens upon their Lot must obtain the approval of the ACC of any such garden and must follow applicable requirements as to size of the Lot, visibility of the Lot from other Lots, streets or common areas, and such other matters as the ACC may specify in any written approval. Landscaping should consist of a combination of sodded turf areas and bed areas containing shrubs and ground cover. Side, front and back yard areas shall be 100% irrigated and 100% sodded where there are no landscaping beds. Large expanses of mulch or bed areas without substantial shrub or groundcover plantings are unacceptable unless the Lot contains a native stand of trees where sodding the entire yard would potentially harm the health of the trees. Stone or gravel mulch with harsh, unnatural or high contrast colors is prohibited. Street scene landscape shall be designed to be harmonious with adjacent Lots and yet thematic in its plant selection. During construction, existing trees shall be preserved and protected to the extent possible for the intended development, as determined in the ACC's discretion; provided, however, that the ACC may require the removal of cedar trees from a Lot regardless of the size of such cedar trees. Ground cover is defined as a planting of low plants (such as ivy) that covers the ground in place of turf. Rock or stone are not acceptable for use as a ground cover other than in flowerbed or walkway areas. The use of rock or crushed rock as a ground cover shall not be permitted. 17 AUSTIN _1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Page 17 of 28 Landscape plans must include vegetative screening for above ground utility connections visible from the street or adjacent properties. Grass should be maintained at a height of no more than two and one-half inches. Mowing heights may need to be altered to prevent scalping in the event of an uneven grade. Grass will be trimmed away from sidewalks, the principal residential structure, planted areas and other obstacles. It is suggested that line trimmers, mechanical edger and chemicals are employed to keep a neat, tidy appearance. Trees and shrubs should be pruned to avoid blocking clear view of signs, address marker, illumination by light fixtures, the flow of air vents and air conditioner compressors as well as pedestrian and vehicular traffic. The ACC reserves the right to require additional landscaping for pools, cabanas and other hardscape elements that may be constructed after completion of the principal residential structure and associated landscaping. Hardscape elements in the landscaping must be in scale with the principal residential structure and associated structures. Sculptures and fountains are subject to approval by the ACC. Notwithstanding any requirements to the contrary, Owners shall comply with all applicable governmentally imposed water use restrictions and shall be granted appropriate relief from any specific requirement set forth in these Design Guidelines that cannot reasonably be complied with, as determined by the ACC, as a result of such water use restrictions. The ACC may, upon the Owner's completion of the installation of landscaping, conduct an on-site inspection of the property to ensure compliance with the approved plan. Shrubs or flower beds shall be located in flower beds along the foundation line of all structures, except cohere paving is adjacent to the structure, and must extend away from the foundation a minimum of five feet (5'). No more than seventy-five percent (75%) of the landscaped area of a front yard may be covered by grass. The landscape requirements of the Town's Roadway Landscape Zones contained within the Town's Unified Development Code are applicable to all Lots. Lawn Furniture, Decorations, and Garden Maintenance Equipment Lawn furniture, including swings/chairs/benches in good repair are allowed on front porches of the principal residential structure, but must be incorporated into a landscape theme if visible from other Lots. Swings and or benches are not allowed on driveways/front lawns etc. unless specifically approved for placement by the ACC. One (1) birdbath of a standard size is acceptable in the rear yard of the Lot without prior written approval from the ACC. 18 GRANADA DESIGN GUIDELINES AUSTIN 1/699747x.4 46145-8 10/22/2013 Page 18 of 28 Notwithstanding exterior holiday decorations, plastic lawn decorations and artificial plants are not permitted, including pink flamingos, animals, or other plastic designs/statues. Lawn mowers, edgers, wheelbarrows, etc. may not be left out in view of other Lots except when in use. Bulk/bag material (mulch, topsoil, etc.) may not be left out in view for longer than ten (10) days. Irrigation The ACC must approve all irrigation systems prior to installation. Drainage Responsibility for proper site drainage rests with the Owner. There shall be no interference with the established drainage patterns except by Declarant, unless adequate provision is made for proper drainage and such provision has been certified by a professional engineer and approved in advance by the ACC. Each Owner is solely responsible for correcting any change in water flow or drainage caused by the construction of Improvements on such Owner's Lot. Fencing All fencing that faces a street shall be decorative metal. See the "Greenbelt/Open Space Lots" Section of these Design Guidelines for fencing requirements for Lots adjacent to greenbelt and/or open space. All fencing should be either masonry or decorative metal. Each post shall have a decorative "cap" on each post. Living plant materials for screening is also allowed. Retaining walls on the front of a Lot shall be constructed of the same stone used on the single family residence constructed on the Lot thereon. If the single family residence does not contain stone, the retaining wall material shall blend with the residence constructed by the Declarant or Homebuilder. Pools, Spas and Hot Tub Plans The plans and specifications for each swimming pool, spa and hot tub constructed on a Lot must be approved in writing and prior to construction by the ACC. All applications submitted to the ACC for the approval of plans and specifications for swimming pools, hot tubs or spas must be accompanied by the applicable Town permits for the construction of same. Any applications submitted to the ACC, which do not include finalized construction permits from the applicable regulatory authority shall constitute an automatic rejection of the application. Above -ground, movable, or temporary swimming pools are prohibited. Each swimming pool constructed on a Lot must be entirely enclosed with a fence or similar structure which, at a minimum, satisfies Applicable Law. The location, color and style of the fence or enclosure must be approved in writing and in advance of construction by the ACC. The ACC may require that a swimming pool, spa and hot tub constructed on a Lot and associated Improvements be enclosed with a fence or similar structure. Approval of a swimming pool, spa and hot tub and/or associated Improvements by the ACC will not constitute a determination by the ACC that the swimming pool spa and hot tub and/or associated Improvements comply with Applicable Law or that the 19 GRANADA DESIGN GUIDELINES AUSTIN 1/699747v.4 46145-8 10/22/2013 Page 19 of 28 swimming pool, spa and hot tub and/or associated Improvements are safe for use. The ACC may require an Owner to install additional screening as a pre -condition to the approval and construction of any swimmingl2ool, spa, or hot tub. No swimming pool, spa and hot tub shall be located in the front or side yard on any Lot. Unless otherwise approved in writing by the ACC, if the foundation or other vertical surface of the swimming pool will extend more than twenty-four inches (24") above the final grade of the Lot, the exposed foundation or vertical surface extending more than twenty-four inches (24") above the final grade will be finished in a manner that matches the exterior masonry of the principal residential structure. Application of the terms "front yard", "side yard", "foundation or other vertical surface", and/or "final grade" as to a specific Lot will be determined by the ACC in its sole and absolute discretion. The ACC may adopt additional requirements for any swimming pool, spa and hot tub and/or associated Improvements on a case by case basis as a condition to approval. Swimming pools shall be in -ground, or a balanced cut and fill, and shall be designed to be compatible with the site and the principal residential structure as determined in the sole and absolute discretion of the ACC. Unless otherwise approved in writing by the ACC, associated swimming pool, spa, and hot tub improvements, such as rock waterfalls and slides, shall not be over six feet (6') in height. No pool or deck may be closer than five (5) feet from any Lot line. Unless otherwise approved in writing by the ACC, all maintenance equipment, including chemicals, plumbing fixtures, heaters, pumps, etc., associated with a swimming pool, spa or hot tub may not be visible from any adjacent street or Lot. The drains serving a swimming pool, spa and hot tub must be connected to street drainage systems. No swimming pool, spa or hot tub shall be drained onto property other than the Lot on which the swimming pool, spa and hot tub is constructed. Above ground spas and hot tubs visible from public view or from an adjacent street or Lot shall be skirted, decked, screened or landscaped in a manner which excludes pumps, plumbing, heaters, filters, etc. from view. No swimming pool, spa or hot tub will be approved unless a principal residential structure has been constructed on the Lot or the swimming pool, spa or hot tub is being constructed at the same time as the principal residential structure. Basketball Goals and Sporting Equipment Basketball goals, or backboards, or any other similar sporting equipment of either a permanent or temporary nature shall not be placed on any Lot or street or where same would be visible from an adjoining street or Lot without the prior written consent of the ACC. Permanent goals must meet the following criteria • the metal pole must be permanently mounted into the ground to the side of the driveway in a full upright position 25' back from the curb; • the pole, backboard and net must be maintained in good condition at all times; and • poles may not be installed in front of the garage or facing into the street. Portable goals will not be allowed unless the following criteria are met: the goal must be placed to the side of the driveway and permanently installed to be flush with the ground and maintained at all times in a hill upright position 25' back from the curb; 20 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Page 20 of 28 • the pole, backboard and net must be maintained in good condition at all times; • poles may not be installed in front of the garage or facing the street; • landscape barrier, such as small shrubs must screen the base of the goal; • goals may not be rolled into the street or any other public right-of-way; and • goals may not be maintained in front of the garage or facing into the street. The ACC shall have the authority to establish additional guidelines for the placement and design of basketball goals, backboards, or any other similar sporting equipment and the same shall be kept and maintained out of view from any street, except in accordance with any such established guidelines. Playscapes and Sport Courts Sports courts, tennis courts, and playscapes or any similar recreational facilities may not be constructed on any Lot without the advance written approval of the ACC. The ACC may prohibit the installation of sports courts, tennis courts, playscapes or similar recreational facilities on any Lot. Playscapes or any similar recreational facilities must comply with all the following requirements: • Must be located where the equipment will have minimum impact on adjacent Lots and be screened from public view. • All playscapes or any similar recreational facilities equipment must be of earth tones colors, i.e., medium to dark greens, browns, and tans. • Bright primary colors will not be permitted. • Views of playscapes or any similar recreational facilities must be reduced from public streets and adjoining units whenever possible. • Playscapes or any similar recreational facilities must not be located any closer to a property line than the established building setbacks. • Trampolines, whether portable or non-portable must be placed no closer than five feet (5) to any property line. • Playscapes, playground equipment and trampolines are prohibited in the front yard. If approved, portable playscapes, including but not limited to, non -permanent and/or inflatable slides, moon bounces, water parks and above ground inflatable pools or kiddy pools (collectively "Portable Playscapes") must be stored in a screened area, the rear of the Lot, or inside the garage when not in use. In no event, shall any Portable Playscapes be visible from or in the front of any Owner's Lot for any period of time exceeding twenty-four (24) consecutive hours. 21 GRANADA DESIGN GUIDELINES AUSTIN 1/699747v.4 46145-8 10/22/2013 Page 21 of 28 Erosion Control and Construction Regulations The following restrictions shall apply to all construction activities at Granada. Periodic inspections bye representative of the ACC may take place in order to identify non -complying construction activities. If items identified as not complying with the regulations are not remedied in a timely manner, fines will be levied. Erosion Control Installation and Maintenance It is the responsibility of each Owner to install erosion control measures prior to the start of construction and to maintain them throughout the entire construction process. Silt fencing installed to all applicable standards is required to be properly installed and maintained to protect the low sides of all disturbed areas, where storm -water will flow during construction. The purpose of the silt fence is to capture the sediment from the runoff and to permit filtered, clean water to exit the site. The Owner should anticipate that built-up sediment will need to be removed from the silt fence after heavy or successive rains, and that any breach in the fencing will need to be repaired or replaced immediately. If for any reason the silt fence is to be temporarily removed, please contact a representative of the ACC prior to the removal. Security Neither the ACC, the Association, nor the Declarant shall be responsible for the security of job sites during construction. Construction Hours Unless a written waiver is obtained from the ACC, construction may only take place during the following hours: Monday through Friday from 7:00 a.m. until 7:00 p.m., and on Saturdays and Sundays from 9:00 a.m. until 6:00 p.m. Noise, Animals, Children The use of radios, tape and CD players must be restrained so as not to be heard on an adjoining Lot or street. Contractors and subcontractors may not bring dogs to construction sites. Contractors and subcontractors may not bring children under 16 years of age to construction sites. Material and Equipment Storage All construction materials and equipment shall be neatly stacked properly covered and secured. Any storage of materials or equipment shall be the Owner's responsibility and at their risk. Owners may not disturb, damage or trespass on other Lots or adjacent property. Insurance 22 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Page 22 of 28 The ACC requires an Owner to procure adequate commercial liability insurance during construction naming the Association, the Declarant and the ACC as additional insureds, in an amount to be determined, from time to time by the ACC. Site Cleanliness During the construction period, each construction site shall be kept neat and shall be properly policed to prevent it from becoming an eyesore. Owners shall provide a container for debris and shall clean up all trash and debris on the construction site on a daily basis. Trash and debris shall be removed from each construction site on a timely basis. Lightweight material, packaging and other items shall be covered or weighted down to prevent wind from blowing such materials off the construction site. The dumping burying or burning of trash is not permitted anywhere in Granada. It is imperative that, when moving heavy equipment around, precautions be taken to prevent damage to pavement, curbs, and vegetation. Crawler tractors are not to be operated on paved or concrete surfaces. Mud, dirt and other construction debris that is tracked off site shall be cleaned on a daily basis. Sanitary Facilities A temporary sanitary facility (chemical toilet) shall be provided and maintained for the use of construction workers and shall be screened from view in a manner approved in advance by the ACC. Construction Parking Construction crews shall not park on, or otherwise use, other Lots. No construction vehicle will be permitted to leak oil or otherwise damage or deface any street located within the community. Schedule of Fines Periodic inspections by a representative of the ACC may take place in order to identify non -complying construction activities. Listed below is the schedule of fines which may be assessed. Schedule of Fines Premature Clearing $5000 Construction Without ACC Approval $5000 Encroachment on Adjacent Properties $5000 plus cost of repair Violation of Rules, Restriction or Guidelines $500/day Failure to Install and/or Maintain Erosion Control Measures $1000/day *Greenbelt/Open Space Lot violation $5000 Sign Violation $500 per sign/incident *In the event, the Association or Declarant is required to repair, clean up or provide necessary service to bring the improvement into compliance, the Owner will be assessed the cost of repair, clean up, or service plus an additional 50% for time and service expended. 23 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Page 23 of 28 Duration of Construction The principal residential structure residence shall be complete and available for occupancy on or before eighteen (18) months after the commencement of construction. Plan Submittals and Review Fees New residential home construction within Granada will utilize the process described in this section. No Improvements may be commenced until the Owner has received a written "Approval" from the ACC. New or Revision House -Start ACC Application - $50 per application Submittal process: Current ACC application completely filled out, plot plan attached (no plans required), and a check per application mailed or delivered to the ACC. Revisions will be charged same as a new submittal. Master Plans ACC Submittal - $500 per package Submittal process: These packages usually occur when a builder enters a community, or changes product. All plans are to be submitted on ledger paper 11x16 or half size sets. Plans must include all elevations, roof pitch, brick/stone/stucco/siding percentages, and dimensional page for house width. Please include a submittal letter explaining the section(s) and specifics of the review. Mail or deliver the plan sets along with a check to the ACC. 'Plans are reviewed in advance by the ACC."* Additional/New ACC Plan Review - $50 per plan Submittal process: Mail or deliver half size or 1lx16 set of plans that include all elevations, roof pitch, brick/stone/stucco/siding percentages, and a dimensional page. Include a submittal letter describing the request along with a check per each plan to he reviewed to the ACC. Variance ACC Review - $50 per variance Submittal process: Variance request letters must include the legal address, street address, and a description of the variance, i.e. measurements, etc. Mail or deliver the letter and any supportive materials (plot plan) along with a check to the ACC. 24 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Page 24 of 28 ATTACHMENTI ACC APPLICATION Deliver to: ACC c/o 1221 North I -35E, Suite 200 Carrollton, Texas 75006 Phone: (469) 892-7200 Fax: (469) 892-7202 Date Lot: Block: Phase: Section: Plan #: Bedrooms: Baths: Address: Lot Plan Attached: (Please Circle) Yes/No V Floor Masonry % 2^d Floor Masonry % Chimney: (Please Circle) Yes/No Masonry Fiber Cement Fencing Type: Stone Manufacturer and Color: Brick Manufacturer and Color: Roof Pitch: Roof Color: Roof Material: Paint Color: Fill in the information if different from color above Trim. Color: Shutters Square Footage of Ho Front Retaining Wall: Builder Name/Contact By: AUSTIN 1/699747v.4 46145-8 10/22/2013 Door Color: Garage Color:_ House Width: (Please Circle) Yes/No Deck: Yes/No Patio: square feet 25 Approval Date: GRANADA DESIGN GUIDELINES Page 25 of 28 ATTACHMENT ( AUSTIN -1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Classic Mailbox CL-BRO-AB I Gaines N U&c3riRt 28 Page 1 of 1 MAILBOXES ACDRESS PLAQUES ACCESSORIES JANZER COLLEGPON INHERE TO BUY HOAtHURDERS CON 1ACT ORDER THE CLASSIC MAILBOX Available in four colors with Polished Brass, Antique Bronze or Satin Nickel finishes. ORDERING FkY3 A Hom Nsnr You Rap:atrnarnl Peas S hof wemShtd NO CU%TdmgR RIRYt R FAGS F n?s4.a"isrz w„nnx”-tnnx fN<:>rist:i Nem >:rattsr: P a.. tF�sty SPECIFICATIONS Classic Mailbox Model CL -SRO -AB Color Bronze Plaque Finish Antique Bronze Height __.. 50114^.._. __._... Width 15 Depth _.. to.. Weight 41 lbs ... IM 5 1 � 4 �u ._ Like ';-...Tweed ASOUT OUR COMPANY itm G'fes S:,Tf Amets:;rc:,..t 5u^xnts Z7fi 5.a+s Prxrw' Fo-'sq CLASSIC MAILBOX COLLECTION About the Cd:ectloo The_ Class c Mair The CId551C. Flsf ptalN- The Classic Double A4.ogU7 ClamslC. 1a p Q, AI,ssonos v Hloli SCC'My Qn io n Cla ssicgddmss Plam�e Photo (;'Aery XRR.P IN TOUCH 9My: tip Fm w, Nxvr9.i€i"m O�AMhaxa A, FR a thou Cat" tis litip://gainesmfg.com/products/mailboxes/classic/classic/?id=CL-BRO-AB 1/8/2015 Page 27 of 28 ATTACHMENT NORTH TEXAS PLANT LIST The following list should be used as a starting point for selecting plants in Granada. Requirements for specific Lots may be more or less restrictive depending on landscape indigenous to the immediate site and the location of the site within the Property. Canopy Trees at Street/ Lot: Shumard Red Oak (Quercus shumardii) Live Oak (Quercus virginiana) Chinquapin Oak (Quercus muehlenbergii) Lacebark Elm (Ulmus parvifolia) Cedar Elm (Ulmus crassifolia) Allee Elm (Ulmus parvifolia'Emer II') Texas Ash (Fraxinus texensis) White Ash (Fraxinus americana) Canopy Trees at Open Spaces: Bald Cypress (Taxodium distichum) Bur Oak (Quercus macrocarpa) Lacey Oak (Quercus laceyi) Ornamental Trees: Desert Willow (Chilopsis linearis) Thornless Mesquite ( Mexican Plum (Prunus mexicana) Redbud (Redbud spp.) Yaupon Holly (Ilex vomitoria) Possomhaw Holly (Ilex decidua) Eastern Red Cedar (Juniperus virginiana) Vitex (Vitex agnus) Crape Myrtle (Lagerstroemia indica) Shrubs: Abeha spp. (Abelia) Cast Iron Plan (Aspidistra elatior) Coral Beauty Cotoneaster (Cotoneaster dammeri) Agarito (Mahonia trifoliolata) American Beautyberry (Callicarpa Americana) Apache Plume (Faliugia paradoxa) Autumn Sage (Salvia greggii) Dwarf Wax Myrtle (Myrica pussila) Flame Acanthus (Anisacanthus wrightii) Fragrant Sumac (Rhus aromatic) 27 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES Page 28 of 28 Pale Leaf Yucca (Yucca pallida) Red Yucca (Hesperaloe parviflora) Smooth Sumac (Rhus glabra) Texas Barberry (Mahonia swaseyi) Texas Sage(Leucophyllum frutescens) Turk's Cap (Malvaviscus drummondii) Grasses: Switchgrass (Panicum virgatum) Big Bluestem (Andropogon gerardii) Bushy Bluestein (Androphgon glomeratus) Eastern Gamagrass (Tripsacum dactyloides) Gulf Muhly (Muhlenbergia capillaris) Indiangrass (Sorghastrum nutans) Inland Seaoats (Chasmanthium latifolium) Lindheimer Muhly (Muhlenbergia lindheimeri) Little Bluestem (Schizachyrium scoparium) Perennials: Black Eyed Susan (Rudbeckia hirta) Blackfoot Daisy (Melampodium leucanthum) Blue Mist Flower (Eupatorium greggii) Butterfly Weed (Asclepias tuberosa) Cardinal Flower (Lobelia cardinalis) Coreopsis (Coreopsis lanceolata) Fall Obedient Plant (Physostegia virginiana) Four -nerve Daisy (Hymenoxys scaposa) Fragrant Phlox (Phlox pilosa) Cedar Sage (Salvia roemeriana) Mealy Blue Sage (Salvia farinacea) Prairie Verbena (Verbena bipinnatifida) Purple Coneflower (Echinacea spp.) Rockrose (Pavonia lasiopetala) Ruellia (Ruellia spp.) Scarlet Sage (Salvia coccinea) Texas Lantana (Lantana horrida) Winecup (Callirhoe involuncrata) Yellow Columbine (Aquilegia spp.) 28 AUSTIN 1/699747v.4 46145-8 10/22/2013 GRANADA DESIGN GUIDELINES