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Res 19-23 Approving The Knolls CCRs and Design Guidelines TOWN OF WESTLAKE RESOLUTION 19-23 A RESOLUTION BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS, APPROVING THE DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICIONS AND DESIGN GUIDELINES FOR THE KNOLLS AT SOLANA, LOCATED IN THE PLANNED DEVELOPMENT NUMBER 6 (PD6) ZONING DISTRICT. WHEREAS, the Town is a duly created and validly existing Type A General Law Municipality, created under the laws of the State of Texas, including particularly, but not by way of limitation, Chapter 51, Texas Local Government Code ("LGC"); and WHEREAS, the Town of Westlake is experiencing planned growth through the attraction of economic development projects such as Fidelity Investments, Deloitte University, and Charles Schwab, residential developments such as Vaquero, Glenwyck Farms, Terra Bella, Granada, Entrada and the Knolls at Solana which are consistent with the Town's Comprehensive Plan; and, WHEREAS, the Town of Westlake (Town) and Wilbow-Solana LLC, (the Developer) desire to foster a cooperative partnership to continue this planned growth through standards that ensure high quality development within the Town in the development known as The Knolls at Solana; and WHEREAS, The Knolls at Solana Development Agreement for Subdivision Improvements, approved by Resolution 18-49 on December 10, 2018, requires Town Council approval of the Declaration of Covenants, Conditions and Restrictions and Design Guidelines; and WHEREAS, the Town Council finds 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 WESTLAKE, TEXAS: 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. SECTION 2: That, the Town Council of the Town of Westlake, Texas, hereby approves the Knolls at Solana Declaration of Covenants, Conditions and Restrictions attached hereto as Exhibit "A". and the Knolls at Solana Design Guidelines attached hereto as Exhibit "B". Resolution 19-23 Page 1 of 2 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 provision ns 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. PASSED AND APPROVED ON THIS 26th DAY OF AUGUST,2019. Laura Wheat, Mayor ATTEST: Ke*Edwards, Town Secretary APPROVED AS TO FORM: T� S T E X PS Stan Lowry, Town Attorney Resolution 19-23 Page 2 of 2 After Recording Return to: Robert D.Burton Winstead PC 401 Congress Ave., Suite 2100 Austin,Texas 78701 email:rburton@winstead.com THE KNOLLS AT 5 ❑ LANA DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS THE KNOLLS AT SOLANA [TARRANT COUNTY, TEXAS] Declarant: Wilbow-Solana LLC,a Texas limited liability company This Declaration of Covenants, Conditions and Restrictions may be used only in connection with the residential community known as The Knolls at Solana in Tarrant County, Texas and the operation of The Knolls at Solana Residential Community,Inc. 4825-0959-4994v.10 59948-2 Res 19-23 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS THE KNOLLS AT SOLANA TABLE OF CONTENTS ARTICLE1 DEFINITIONS.....................................................................................................................1 ARTICLE 2 USE RESTRICTIONS.........................................................................................................6 2.1 General.................................................................................................................................7 2.2 Conceptual Plans................................................................................................................8 2.3 Single-Family Residential Use..........................................................................................8 2.4 Rentals .................................................................................................................................9 2.5 Subdividing.......................................................................................................................10 2.6 Hazardous Activities.......................................................................................................10 2.7 Insurance Rates.................................................................................................................10 2.8 Mining and Drilling.........................................................................................................11 2.9 Water Bodies.....................................................................................................................11 2.10 Noise..............................................................................................................................11 2.11 Animals-Household Pets..........................................................................................11 2.12 Rubbish and Debris......................................................................................................12 2.13 Trash Containers..........................................................................................................12 2.14 Maintenance..................................................................................................................12 2.15 Street Landscape Area-Owner's Obligation to Maintain Landscaping................13 2.16 Antennas........................................................................................................................13 2.17 Location of Permitted Antennas................................................................................14 2.18 Signs...............................................................................................................................14 2.19 Flags-Approval Requirements.................................................................................15 2.20 Flags-Installation and Display.................................................................................16 2.21 Tanks..............................................................................................................................17 2.22 Temporary Structures..................................................................................................17 2.23 Unsightly Articles;Vehicles........................................................................................17 2.24 Basketball Goals;Permanent and Portable...............................................................18 2.25 Compliance with Restrictions ....................................................................................18 2.26 Liability of Owners for Damage to Common Area.................................................19 2.27 No Warranty of Enforceability...................................................................................19 2.28 Party Wall Fences.........................................................................................................19 2.29 No Tennis or Recreational Courts;Playscapes........................................................20 2.30 Decorations and Lighting............................................................................................20 2.31 Clotheslines;Window Air Conditioners...................................................................20 2.32 Dumping.......................................................................................................................20 2.33 Restriction on Use of Common Area.........................................................................21 2.34 Water Quality Facilities,Drainage Facilities and Drainage Ponds.......................21 i THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 Table of Contents (Continued) Page 2.35 Homebuilder Exemption............................................................................................21 ARTICLE 3 CONSTRUCTION RESTRICTIONS............................................................................21 3.1 Approval for Construction.............................................................................................21 3.2 Masonry Requirements...................................................................................................21 3.3 Minimum Square Footage ..............................................................................................21 3.4 Garages..............................................................................................................................21 3.5 Fences; Sidewalks.............................................................................................................22 3.6 Building Restrictions........................................................................................................22 3.7 Alteration or Removal of Improvements......................................................................22 3.8 Drainage............................................................................................................................22 3.9 Construction Activities....................................................................................................22 3.10 Roofing..........................................................................................................................22 3.11 Swimming Pools...........................................................................................................23 3.12 Solar Energy Device.....................................................................................................23 3.13 Rainwater Harvesting Systems..................................................................................23 3.14 Xeriscaping....................................................................................................................24 3.15 Permitted Grasses and Plants.....................................................................................25 ARTICLE 4 THE KNOLLS AT SOLANA RESIDENTIAL COMMUNITY,INC........................26 4.1 Organization.....................................................................................................................26 4.2 Membership......................................................................................................................26 4.3 Governance.......................................................................................................................27 4.4 Voting Rights....................................................................................................................27 4.5 Powers ...............................................................................................................................28 4.6 Conveyance of Common Area to the Association.......................................................31 4.7 Indemnification................................................................................................................31 4.8 Insurance...........................................................................................................................32 4.9 Bulk Rate Contracts..........................................................................................................32 4.10 Community Systems....................................................................................................33 4.11 Declarant's Right to Contribute to Revenues of the Association..........................33 4.12 Protection of Declarant's Interests.............................................................................33 4.13 Administration of Common Area..............................................................................33 4.14 Private Streets...............................................................................................................34 4.15 Notices and Disclaimers as to Security Systems......................................................34 4.16 Merger............................................................................................................................35 4.17 Right of Action by Association...................................................................................35 ARTICLE5 INSURANCE......................................................................................................................35 5.1 Insurance...........................................................................................................................35 5.2 Restoration........................................................................................................................36 5.3 Mechanic's and Materialmeri s Lien..............................................................................37 ARTICLE 6 COVENANT FOR ASSESSMENTS..............................................................................37 ii THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 Table of Contents (Continued) Page 6.1 Assessments......................................................................................................................37 6.2 Maintenance Fund...........................................................................................................37 6.3 Regular Annual Assessments.........................................................................................37 6.4 Working Capital Assessment.........................................................................................38 6.5 Special Assessments.........................................................................................................39 6.6 Individual Assessments..................................................................................................39 6.7 Amount of Assessment...................................................................................................39 6.8 Late Charges.....................................................................................................................40 6.9 Owner's Personal Obligation; Interest..........................................................................40 6.10 Assessment Lien and Foreclosure..............................................................................40 6.11 Exempt Property..........................................................................................................42 6.12 Fines and Damages Assessment................................................................................42 ARTICLE 7 ARCHITECTURAL CONTROL COMMITTEE..........................................................43 7.1 Construction of Improvements......................................................................................43 7.2 Architectural Control Committee..................................................................................43 ARTICLE 8 MORTGAGE PROVISIONS..........................................................................................46 8.1 Notice of Action................................................................................................................46 8.2 Examination of Books......................................................................................................47 8.3 Taxes,Assessments and Charges...................................................................................47 ARTICLE 9 GENERAL PROVISIONS ...............................................................................................47 9.1 Term...................................................................................................................................47 9.2 Eminent Domain..............................................................................................................47 9.3 Amendment......................................................................................................................48 9.4 Roadway and Utility Easements....................................................................................48 9.5 Enforcement......................................................................................................................48 9.6 Higher Authority .............................................................................................................49 9.7 Severability........................................................................................................................49 9.8 Conflicts.............................................................................................................................49 9.9 Gender...............................................................................................................................49 9.10 Acceptance by Grantees..............................................................................................49 9.11 Damage and Destruction............................................................................................50 9.12 No Partition...................................................................................................................50 9.13 Notices...........................................................................................................................51 9.14 View Impairment.........................................................................................................51 9.15 Safety and Security.......................................................................................................51 ARTICLE 10 EASEMENTS ...................................................................................................................51 10.1 Right of Ingress and Egress........................................................................................51 10.2 Reserved Easements....................................................................................................52 10.3 Utility Easements.........................................................................................................52 10.4 Subdivision Entry and Fencing Easement................................................................53 iii THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 Table of Contents (Continued) Page 10.5 Monument Sign Easement..........................................................................................53 10.6 Landscape Maintenance Easement............................................................................53 ARTICLE 11 DEVELOPMENT RIGHTS............................................................................................53 11.1 Development by Declarant.........................................................................................53 11.2 Special Declarant Rights..............................................................................................54 11.3 Addition of Land..........................................................................................................54 11.4 Withdrawal of Land.....................................................................................................55 11.5 Assignment of Declarant's Rights..............................................................................55 ARTICLE 12 DISPUTE RESOLUTION..............................................................................................55 12.1 Introduction and Definitions......................................................................................55 12.2 Mandatory Procedures................................................................................................56 12.3 Claim Affecting Common Areas................................................................................56 12.4 Notice.............................................................................................................................57 12.5 Negotiation...................................................................................................................58 12.6 Mediation......................................................................................................................58 12.7 Termination Of Mediation..........................................................................................58 12.8 Binding Arbitration-Claims........................................................................................59 12.9 Allocation Of Costs......................................................................................................60 12.10 General Provisions.......................................................................................................61 12.11 Period of Limitation.....................................................................................................61 12.12 Funding Arbitration and Litigation...........................................................................61 iv THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS THE KNOLLS AT SOLANA This Declaration of Covenants, Conditions and Restrictions (the "Declaration") is made by WILBOW-SOLANA LLC, a Texas limited liability company (the "Declarant"), and is as follows: RECITALS: A. This Declaration is filed with respect to Lots 2 through 20, Block A; Lots 2 through 4, 6 through 11, 13 through 15, 18 through 20, 22 through 25, and 27 through 30, Block B; and Lots 2 through 15, Block C; Knolls at Solana, a subdivision in Tarrant County Texas, according to the plat Recorded under Instrument 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 Recording of this Declaration, Declarant serves notice that the Property is subject 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: "Access Gates" mean any subdivision entry facilities serving the Property, including, but not limited to, gates, call boxes, controllers and all other facilities associated with operation -1- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 of gates restricting access to the Private Streets. The Access Gates are designated hereby as Common Area. "Applicable Law" means all statutes, public laws, ordinances, policies, rules, regulations and orders of all federal, state, county and municipal governments or their agencies having jurisdiction and control over the Property in effect at the time a provision of the Restrictions is applied, and pertaining to the subject matter of the Restriction provision, and all other ordinances and any other applicable building codes, zoning restrictions and permits or other applicable regulations. Statutes and ordinances specifically referenced in the Restrictions are "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. As provided in Article 7 below, the Declarant acts as the ACC and the ACC is not a committee of the Association until the Declarant has assigned its right to appoint and remove all ACC members to the Association in a Recorded and written instrument. "Assessment" or "Assessments" means all assessments imposed by the Association under this Declaration. "Assessment Unit" has the meaning set forth in Section 6.7.2. "Association" means The Knolls at Solana 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. The failure of the Association to maintain its corporate charter from time to time does not affect the existence or legitimacy of the Association, which derives its authority from this Declaration, the Certificate, the Bylaws, and Applicable Law. "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 pickup 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. Each Bulk Rate Contract must be approved in advance and in writing by the Declarant until expiration or termination of the Development Period. -2- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 'Bylaws' means the bylaws of the Association, which may be initially adopted and Recorded by Declarant or the Board of the Association and Recorded as part of the initial project documentation for the benefit of the Association. The Bylaws may be amended, from time to time, by the Declarant until expiration or termination of the Development Period. Any amendment to 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. Upon expiration of the Development Period,the Bylaws may be amended 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, without limitation, the Conservation Area (defined below) and 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. "Community Manual" means the community manual of the Association, which may be initially adopted and Recorded by the Declarant or the Board of the Association and Recorded as part of the initial project documentation for the benefit of the Association and the Property. The Community Manual may include the Bylaws, Rules and Regulations and other policies governing the Association. The Bylaws, Rules and Regulations and other policies set forth in the Community Manual may be amended, from time to time, by the Declarant until expiration or termination of the Development Period. Any amendment to the Bylaws, Rules and Regulations and other policies governing the Association prosecuted by the Board must be approved in advance and in writing by the Declarant until expiration or termination of 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 the Access Gates and 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. "Conservation Area" means that certain 22.892-acre tract of land adjacent to the Property, as more particularly described on Exhibit A of the Conservation Area Deed (defined below). The Conservation Area is subject to certain use restrictions as set forth in the Conservation Area Deed. -3- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 "Conservation Area Deed" means that certain Special Warranty Deed conveying the Conservation Area from the Declarant to the Town of Westlake, recorded under Document No. D219086822,Official Public Records of Tarrant County, Texas. "Declarant" means WILBOW-SOLANA LLC, a Texas limited liability company, its successors or assigns; provided that any assignment(s) of the rights of WILBOW-SOLANA LLC, a Texas limited liability company, 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 proposed to be placed on any Lot adopted pursuant to Section 7.2.3, 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. At Declarant's option, Declarant may adopt or amend from time to time the Design Guidelines for the Property or any portion thereof. Notwithstanding anything in this Declaration to the contrary, Declarant will have no obligation to establish Design Guidelines for the Property or any portion thereof. "Development Agreement" means that certain Development Agreement by and between the Declarant and the Town dated effective 20 "Development Period" means the period of time beginning on the date when this Declaration has been Recorded, and ending twenty-four (24) months after the date that Declarant no longer owns any portion of the Property, unless earlier terminated by a Recorded written instrument executed by the Declarant. 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 all physical enhancements and alterations to the Property, including but not limited to grading, clearing, removal of trees, alteration of drainage flow, and site work, and 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 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, -4- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 poles, signs, antennas, 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 4.5.8. "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 31X, Block B, Knolls at Solana, a subdivision in Tarrant County Texas, according to the plat Recorded under Instrument No. Official Public Records of Tarrant County, Texas, consisting of private roadways known as Hidden Oak Trail, Highpoint Trail, Deer Run Drive, Forest Knoll Drive, Blackjack Oak Trail, Highcrest Drive, Spanish Oak Trail and Knollwood Drive. 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 2 through 20,Block A;Lots 2 through 4, 6 through 11, 13 through 15, 18 through 20, 22 through 25, and 27 through 30, Block B; and Lots 2 through 15, Block C; Knolls at Solana, a subdivision in Tarrant County Texas, according to the plat Recorded under Instrument No. , Official Public Records of Tarrant County, Texas, subject to such additions thereto and deletions therefrom as may be made pursuant to Section 11.3 and Section 11.4 of this Declaration. "Record, Recording, Recordation and Recorded" means recorded or to be recorded in the Official Public Records of Tarrant County,Texas. -5- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 "Resident" means an occupant or tenant of a Lot, regardless of whether the person owns the Lot. "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 and Regulations" 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. TABLE 1:RESTRICTIONS Declaration(Recorded) Creates obligations that are binding upon the Association and all resent and future owners of Property. 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. The Declarant shall have no obligation to adopt the Design Guidelines. Rules and Regulations(if adopted, Regulates the use of property, activities, and conduct within Recorded) the Pro erty. Board Resolutions(adopted by the Board Establishes rules, policies, and procedures for the Property, of the Association) Owners and the Association. 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: -6- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 2.1 General. 2.1.1 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. 2.1.2 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. 2.1.3 Compliance with Development Agreement and Conservation Area Deed. The Association, each Owner, Homebuilder, Resident or other user of any portion of the Property must comply with the Restrictions and Applicable Law, as well as those certain obligations and requirements set forth in the Development Agreement and the Conservation Area Deed. (i) The Development Agreement contains certain development and maintenance standards for Lots and residential homes constructed on the Lots. Each Owner and Homebuilder is advised to review the Development Agreement prior to acquisition of a Lot and prior to commencement of construction of any Improvements on the Property. In the event of any conflict between the Restrictions and the Development Agreement, the Development Agreement shall control. (ii) The Conservation Area Deed contains certain rights, obligations and restrictions (the "Conservation Area Restrictions") regarding the use of and access to the Conservation Area. Each Owner and Homebuilder is advised to review the Conservation Area Restrictions prior to acquisition of a Lot and prior to commencement of construction of any -7- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 Improvements on the Property. In the event of any conflict between the Restrictions and the Conservation Area Restrictions, the Conservation Area Restrictions shall control. 2.2 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 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. 2.3 Single-Family Residential Use . The Lots shall be used solely for single-family residential purposes. The Lots may not be used for any other purposes without the prior written consent of the Declarant, which consent may be withheld by the Declarant in its sole and absolute discretion. No professional, business, or commercial activity to which the general public is invited shall be conducted on any portion of a Lot, except an Owner or Resident may conduct business activities within a residence so long as: (i) such activity complies with all the applicable zoning ordinances (if any); (ii) participation in the business activity is limited to the Owner(s) or Resident(s) of a residence; (iii) the existence or operation of the business activity is not apparent or detectable by sight, i.e., no sign may be erected advertising the business within the Property, sound, or smell from outside the residence; (iv) the business activity does not involve door-to-door solicitation of residents within the Property; (v) 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; (vi) 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 within the Property as may be determined in the sole discretion of the Board; and (vii) the business does not require the installation of any machinery other than that customary to normal household operations. In addition, for the purpose of obtaining any business or commercial license, neither the residence nor Lot will be considered open to the public. The terms "business" and "trade", as used in this provision, shall be construed to have their ordinary, generally accepted meanings and shall include, without limitation, any occupation, work, or activity undertaken on an ongoing basis which involves the provision of goods or services to persons other than the provider's family -8- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 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 shall not be considered a business or trade within the meaning of this subsection. This subsection shall not apply to any activity conducted by the Declarant or a Homebuilder. 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 designees 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 designees shall 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 designees will have an access easement over and across the Common Area for the purpose of making, constructing and installing Improvements upon the Common Area. 2.4 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 -9- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 expressly incorporated into any lease of a Lot. This Section 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 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. 2.5 Subdividinl;. 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. In the event of the re-subdivision of any Lot into two (2) or more Lots, each Lot resulting from the re-subdivision shall be allocated one (1) Assessment Unit. In the event of the consolidation of two (2) or more Lots for the purposes of constructing a single residence thereon, the Assessment Units will continue to be determined according to the number of original Lots contained in such consolidated Lot. Nothing in this Declaration shall be construed as authorization for any re- subdivision or consolidation of Lots, such actions being subject to the written approval of the ACC. 2.6 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. 2.7 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. -10- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 2.8 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. 2.9 Water Bodies. By acceptance of a deed to a home or a 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. 2.10 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). 2.11 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 -11- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 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. 2.12 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. 2.13 Trash Containers. Trash containers and recycling bins must be stored in one of the following locations: (i) inside the garage of the single-family residence constructed on the Lot; or (ii) 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. 2.14 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 2.14 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. -12- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 (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. Notwithstanding the foregoing, in the Board, in its sole discretion, may require the Association to perform the landscape maintenance obligations set forth in this Section 2.14 on behalf of the Owners. In such event, the costs incurred by the Association to perform the landscape maintenance obligations shall be discharged through regular annual Assessments levied in accordance with Section 6.3 herein. 2.15 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 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. 2.16 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. Declarant and/or the Association will have the right, but not the obligation, to erect an aerial, satellite dish, or other apparatus for a master -13- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 antenna, cable, or other communication system for the benefit of all or any portion of the Property. 2.17 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., DirectTV or Dish satellite dishes, are permitted, HOWEVER, you are required to comply with the rules regarding installation and placement. These Rules and Regulations may be modified by the ACC from time to time. Please contact the ACC for the current rules regarding installation and placement. 2.18 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 expressly permitted pursuant to the Design Guidelines or Rules and Regulations; (ii) signs which are part of Declarant's or Homebuilder's overall marketing, sale, or construction plans or activities for the Property; (iii) one (1) temporary school "spirit" sign placed on the Lot. The sign must be professionally made and shall be limited to 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 -14- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 must be removed within five (5) business days following the athletic season for which the sign relates; (iv) one (1) temporary "For Sale" sign placed on the Lot. The sign must be professionally made and shall 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 the finished grade of the Lot 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; (v) political signs may be erected provided the sign: (a) is erected no earlier than the 90th day before the date of the election to which the sign relates; (b) is removed no later than the 101h 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; (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; (vii) permits as may be required by legal proceedings;and (viii) permits as may be required by any governmental entity. An Owner or Resident will be permitted to post 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. For Lease and For Rent signs are expressly prohibited. 2.19 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 -15- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 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. 2.20 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 the Declarant or 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) Each 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; -16- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 (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 (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. 2.21 Tanks. The ACC must approve any tank used or proposed in connection with a residence, including tanks for storage of fuel, water, oil, or LPG, and including swimming pool filter tanks. 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. 2.22 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. 2.23 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 -17- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 provision for such period of time as is reasonably necessary to provide service or to make a delivery to a residence,but in no event exceeding twenty-four(24)hours. Mobile homes are prohibited. Notwithstanding the foregoing, sales trailers or other temporary structures expressly approved by the ACC shall be permitted. 2.24 Basketball Goals; Permanent and Portable. Permanent basketball goals are permitted between the street right-of-way and the front of the residence on a Lot provided the basketball goal is located approximately twenty-five feet (25') from the street curb. The basketball goal backboard must be perpendicular to the street and mounted on a black metal pole permanently installed in the ground. 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 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 6.12 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 2.25 (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. -18- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 2.26 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 provided in Section 6.10 of this Declaration. 2.27 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. 2.28 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 2.28, is subject to the general rules of law regarding party walls and liability for property damage due to negligence, willful acts, or omissions. 2.28.1 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 2.28. 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. 2.28.2 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. 2.28.3 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 -19- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 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 2.28 is appurtenant to the Lot and passes to the Owner's successors in title. 2.28.4 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. 2.29 No Tennis or Recreational Courts; Playscapes. No tennis, recreational or sport courts shall be constructed on any Lot unless expressly approved by the ACC. The ACC may prohibit the installation of a tennis, recreational or sport court on any Lot. 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 playscapes or similar recreational facilities on any Lot. 2.30 Decorations and Lighting. Unless otherwise permitted by Section 2.18(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. Customary seasonal decorations for holidays are permitted without approval by the ACC but shall be removed within thirty (30) days of the applicable holiday. Outside lighting fixtures shall be placed so as to illuminate only the yard of the applicable Lot and so as not to affect or reflect into surrounding residences or yards. No mercury vapor, sodium or halogen light shall be installed on any Lot which is visible from any street unless otherwise approved by the ACC. 2.31 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. 2.32 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 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. -20- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 2.33 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. 2.34 Water Quality Facilities, Drainage Facilities and Drainage Ponds. The Property may include, now or in the future, one or more water quality facilities, sedimentation, drainage and detention facilities, or ponds which serve all or a portion of the Property and are inspected, maintained and administered by the Association in accordance with Applicable Law. Access to these facilities and ponds is limited to persons engaged by the Association to periodically maintain such facilities. Each Owner is advised that the water quality facilities, sedimentation, drainage and detention facilities and ponds are an active utility feature integral to the proper operation of the Property and may periodically hold standing water. Each Owner is advised that entry into the water quality facilities, sedimentation, drainage and detention facilities or ponds may result in injury and is a violation of the Rules and Regulations. 2.35 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 in the completion of the Property, or any portion thereof. 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 3.1 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. 3.2 Masonry Requirements. The masonry requirements for each residence constructed on a Lot are set forth in the Design Guidelines. 3.3 Minimum Square Footage. The minimum square footage requirements for each residence constructed on a Lot are set forth in the Design Guidelines. 3.4 Garages. Each residence constructed upon a Lot shall have a private garage for not less than two (2) automobiles; provided, however, that pursuant to applicable zoning requirements, certain residences constructed upon a Lot shall be required to have a private garage for not less than three (3) automobiles. The location, orientation and opening of each garage to be located on a Lot shall be approved in advance of construction by the ACC. All garages shall be maintained for the parking of automobiles, may not be used for storage or other purposes which preclude its use for the parking of automobiles, and no garage may be permanently enclosed or otherwise used for habitation. -21- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 3.5 Fences; Sidewalks. All fences, courtyard fencing, parking screening and walls shall comply with all Applicable Law. Fences constructed on corner lots may be installed one (1) foot from the sidewalk and/or the property line of the Lot, provided that such fencing complies with 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. 3.6 Building Restrictions. All building materials must be approved in advance by the ACC, and only new building materials shall be used for constructing any Improvements. Detailed building restrictions for each residence constructed on a Lot are set forth in the Design Guidelines. 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. 3.7 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. 3.8 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 alters the natural drainage patterns, unless such drainage is redirected to a street or Common Area upon the written approval of the ACC. 3.9 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 Roofin . The roofing requirements for each residence constructed on a Lot are set forth in the Design Guidelines. -22- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 3.11 Swimming Pools. 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. Solar Energy Devices may be installed with the advance written approval of the ACC in accordance with the procedures set forth in the Design Guidelines. 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. 3.13.1 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 unless the Owner's tenant provides written confirmation at the time of submission that the Owner consents to the Rain System Application. 3.13.2 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 Section 3.13 when considering any such request. 3.13.3 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: (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. -23- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 (iv) There is sufficient area on the Owner's Lot to install the Rainwater Harvesting System, as reasonably determined by the ACC. See Section 3.13.4 for additional guidance. 3.13.4 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 not rp ohibit the economic installation of the Rainwater Harvesting System, as reasonably determined by the ACC. 3.14 Xeriscaping. As part of the installation and maintenance of landscaping on an Owner's Lot, an Owner may submit plans for and install drought tolerant landscaping ("Xeriscaping") upon written approval by the ACC. All Owners implementing Xeriscaping shall comply with the following: 3.14.1 Application. Approval by the ACC is required prior to installing Xeriscaping. To obtain the approval of the ACC for Xeriscaping, the Owner shall provide the ACC with the following information: (i) the proposed site location of the Xeriscaping on the Owner's Lot; (ii) a description of the Xeriscaping, including the types of plants, border materials, hardscape materials and photograph or other accurate depiction and (iii) the percentage of yard to be covered with gravel, rocks and cacti (the "Xeriscaping Application"). A Xeriscaping Application may only be submitted by an Owner unless the Owner's tenant provides written confirmation at the time of submission that the Owner consents to the Xeriscaping Application. The ACC is not responsible for: (i) errors or omissions in the Xeriscaping Application submitted to the ACC for approval; (ii) supervising installation or construction to confirm compliance with an approved Xeriscaping Application or (iii) the compliance of an approved application with Applicable Law. 3.14.2 Approval Conditions. Unless otherwise approved in advance and in writing by the ACC, each Xeriscaping Application and all Xeriscaping to be installed in accordance therewith must comply with the following: (i) The Xeriscaping must be aesthetically compatible with other landscaping in the community as reasonably determined by the ACC. For purposes of this Section 3.14, "aesthetically compatible" shall mean overall and long- term aesthetic compatibility within the community. For example, an -24- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 Owner's Lot plan may be denied if the ACC determines that: a) the proposed Xeriscaping would not be harmonious with already established turf and landscaping in the overall community; and/or b) the use of specific turf or plant materials would result in damage to or cause deterioration of the turf or landscaping of an adjacent property owner, resulting in a reduction of aesthetic appeal of the adjacent property Owner's Lot. (ii) No Owners shall install gravel, rocks or cacti that in the aggregate encompass over ten percent (10%) of such Owner's front yard or ten percent (10%) of such Owner's back yard. (iii) The Xeriscaping must not attract diseases and insects that are harmful to the existing landscaping on neighboring Lots, as reasonably determined by the ACC. 3.14.3 Process. The decision of the ACC will be made within a reasonable time, or within the time period otherwise required by the principal deed restrictions which govern the review and approval of improvements. A Xeriscaping Application submitted to install Xeriscaping on property owned by the Association or property owned in common by members of the Association will not be approved. Any proposal to install Xeriscaping 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 the requirements set forth in this Section 3.14 when considering any such request. 3.14.4 Approval. Each Owner is advised that if the Xeriscaping Application is approved by the ACC, installation of the Xeriscaping must: (i) strictly comply with the Xeriscaping Application; (ii) commence within thirty (30) days of approval; and (iii) be diligently prosecuted to completion. If the Owner fails to cause the Xeriscaping to be installed in accordance with the approved Xeriscaping Application, the ACC may require the Owner to: (i) modify the Xeriscaping Application to accurately reflect the Xeriscaping installed on the Property; or (ii) remove the Xeriscaping and reinstall the Xeriscaping in accordance with the approved Xeriscaping Application. Failure to install Xeriscaping in accordance with the approved Xeriscaping Application or an Owner's failure to comply with the post-approval requirements constitutes a violation of this Declaration and may subject the Owner to fines and penalties. Any requirement imposed by the ACC to resubmit a Xeriscaping Application or remove and relocate Xeriscaping in accordance with the approved Xeriscaping Application shall be at the Owner's sole cost and expense 3.15 Permitted Grasses and Plants. Notwithstanding anything contained herein to the contrary, the native grasses and plans permitted to be placed within the Property are set forth in the Design Guidelines. -25- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 ARTICLE 4 THE KNOLLS AT SOLANA RESIDENTIAL COMMUNITY,INC. 4.1 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. 4.2 Membershiy. 4.2.1 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! 4.2.2 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, or the Declarant's designee, 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 Member's 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 Declarant, during the Development Period, and the Board thereafter, to dedicate or transfer all or any part of the Common Area to any public agency, authority or utility for any purpose; (iv) With the advance written approval of the Declarant during the Development Period, the right of the Board to grant easements or licenses over and across the Common Area; (v) With the advance written approval of the Declarant during the Development Period, the right of the Board to borrow money for the -26- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 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, with the advance written approval of the Declarant during the Development Period, to promulgate Rules and Regulations 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 Board may determine, except that during the Development Period, all such contracts must be approved in advance and in writing by the Declarant. 4.3 Governance. As more specifically described in the Bylaws, 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, 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. Not later than the 10th anniversary of the date this Declaration is Recorded, or sooner as determined by Declarant, the Board shall 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. 4.4 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 4.3) and on all other matters to be voted on by the Members will be calculated as set forth below. 4.4.1 Owner Votes. The Owner of each Lot will have one (1) vote for each Lot so owned. 4.4.2 Declarant Votes. In addition to the votes to which Declarant is entitled by reason of Section 4.4.1, 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. 4.4.3 Co-Owner Votes. 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 4.4. -27- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 4.5 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: 4.5.1 Rules and Regulations, 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, policies, Bylaws and Community Manual, as applicable, which are not in conflict with this Declaration, as it deems proper, covering any and all aspects of the Property, the Common Area (including the operation, maintenance and preservation thereof) or the Association. Any Rules and Regulations, policies, the Bylaws and the Community Manual and any modifications thereto proposed by the Board must be approved in advance and in writing by the Declarant until expiration or termination of the Development Period. 4.5.2 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. 4.5.3 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. 4.5.4 Assessments. To levy and collect assessments, as provided in Article 6 below. 4.5.5 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 -28- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 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 4.5.5 (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 MISCONDUCT. "GROSS NEGLIGENCE" DOES NOT INCLUDE SIMPLE NEGLIGENCE, CONTRIBUTORY NEGLIGENCE OR SIMILAR NEGLIGENCE SHORT OF ACTUAL GROSS NEGLIGENCE. 4.5.6 Legal and Accounting Services. To retain and pay for legal and accounting services necessary or proper in the operation of the Association. 4.5.7 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 4.5.7 must be approved in advance and in writing by the Declarant. In addition, the Association is (with the advance written approval of the Declarant during the Development Period) and the Declarant are expressly authorized and permitted to convey easements over and across -29- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 Common Area for the benefit of property not otherwise subject to the terms and provisions of this Declaration. 4.5.8 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. 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. 4.5.9 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. 4.5.10 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. 4.5.11 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. 4.5.12 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. 4.5.13 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. -30- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 4.5.14 Allocation of Votes. To determine votes when permitted pursuant to Section 4.4 above. 4.5.15 Authority with Respect to the Restrictions. To do any act, thing or deed that is necessary or desirable, in the judgment of the Board, to implement, administer or enforce any of the Restrictions. Any decision by the Board to delay or defer the exercise of the power and authority granted by this Section 4.5.15 will not subsequently in any way limit, impair or affect ability of the Board to exercise such power and authority. 4.5.16 Membership Privileges. To establish Rules and Regulations governing and limiting the use of the Common Area and any Improvements thereon. 4.6 Conveyance of Common Area to the Association. The Association may acquire, hold, and dispose of any interest in tangible and intangible personal property and real property. Declarant, and its assignees, reserves the right, from time to time and at any time, to designate, convey, assign or transfer by written and Recorded instrument property being held by the Declarant for the benefit of the Association. Upon the Recording of a designation, the portion of the property identified therein will be considered Common Area for the purpose of this Declaration and the Association shall have an easement over and across the Common Area necessary or required to discharge the Association's obligations under this Declaration, subject to any terms and limitations to such easement set forth in the designation. Declarant and its assignees may also assign, transfer or convey to the Association interests in real or personal property within or for the benefit of the Property, for the Property and the general public, or otherwise, as determined in the sole and absolute discretion of the Declarant. All or any real or personal property assigned, transferred and/or conveyed by the Declarant to the Association shall be deemed accepted by the Association upon Recordation, and without further action by the Association, and shall be considered Common Area without regard to whether such real or personal property is designated by the Declarant as Common Area. If requested by the Declarant, the Association will execute a written instrument, in a form requested by the Declarant, evidencing acceptance of such real or personal property; provided, however, execution of a written consent by the Association shall in no event be a precondition to acceptance by the Association. The assignment, transfer, and/or conveyance of real or personal property to the Association may be by deed without warranty, may reserve easements in favor of the Declarant or a third party designated by Declarant over and across such property, and may include such other provisions, including restrictions on use, determined by the Declarant, in the Declarant's sole and absolute discretion. Property assigned, transferred, and/or conveyed to the Association may be improved or unimproved and may consist of fee simple title, easements, leases, licenses, or other real or personal property interests. Upon Declarant's written request, the Association will re-convey to Declarant any unimproved real property that Declarant originally conveyed to the Association for no payment. 4.7 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 -31- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 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. 4.8 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. 4.9 Bulk Rate Contracts. Without limitation on the generality of the Association powers set out in Section 4.5 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 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 -32- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 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 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 -33- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 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 OCCUPANT 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 OCCUPANT'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 occupant 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 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 -34- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 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. 4.16 Merge . Merger or consolidation of the Association with another association must be evidenced by an amendment to this Declaration. The amendment must be approved by at least two-thirds of the votes of Members present in person or by proxy at the meeting at which the action to merge or consolidate with another association is submitted for a vote. On merger or consolidation of the Association with another association, the property, rights, and obligations of another association may, by operation of law, be added to the properties, rights, and obligations of the Association as a surviving corporation pursuant to the merger. The surviving or consolidated association may administer the provisions of the Restrictions within the Property, together with the covenants and restrictions established on any other property under its jurisdiction. No merger or consolidation, however, will effect a revocation, change, or addition to the covenants established by this Declaration within the Property. 4.17 Right of Action by Association. The Association shall not have the power to institute, defend, intervene in, settle or compromise litigation or administrative proceedings: (i) in the name of or on behalf of any Lot Owner (whether one or more); or (ii) pertaining to a Claim, as defined in Section 12.1 below, relating to the design or construction of Improvements on a Lot. This Section 4.17 may not be amended or modified without Declarant's written and acknowledged consent and Members entitled to cast at least one hundred percent (100%) of the total number of votes of the Association, which must be part of the Recorded amendment instrument. ARTICLE 5 INSURANCE 5.1 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. During the Development Period, Declarant reserves -35- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 the right to satisfy the insurance obligations of the Association with a master insurance program controlled by Declarant. ARE YOU COVERED? The Association will not provide insurance which covers an Owner's Lot or any Improvements or personal property located on a Lot. 5.2 Restoration. In the event of any fire or other casualty, unless otherwise approved by the ACC, the Owner (i) promptly repair, restore and replace any damaged or destroyed structures to their same exterior condition existing prior to the damage or destruction thereof, or (ii) in the case of substantial or total damage or destruction of any Improvement, remove all such damaged Improvements and debris from the Property within thirty (30) days after the occurrence of such damage. 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 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 (11/2%) 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 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. 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 5.2, 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. -36- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 5.3 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 6.1 Assessments. 6.1.1 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 6.7 below. The total amount of Assessments will be determined by the Board pursuant to Sections 6.3, 6.4, 6.5 and/or 6.6. 6.1.2 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 (such lien, with respect to any Lot not in existence on the date hereof, will be deemed granted and conveyed at the time that such Lot is created). The Association may enforce payment of such Assessments in accordance with the provisions of this Article. 6.1.3 Declarant Subsidy. Declarant may, but is not obligated to, reduce Assessments which would otherwise be levied against Lots for any fiscal year by the payment of a subsidy to the Association. Any subsidy paid to the Association by Declarant may be treated as a contribution or a loan,in Declarant's sole and absolute discretion. The payment of a subsidy in any given year will not obligate Declarant to continue payment of a subsidy to the Association in future years. 6.2 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. 6.3 Regular Annual 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 -37- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 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. Assessments sufficient to pay such estimated net expenses will then be levied at the level of Assessments 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 Assessment, the Association may at any time, and from time to time, levy further Assessments in the same manner. All such regular annual Assessments will be due and payable to the Association annually on or before the first day of the month at the beginning of the fiscal year, or in such other manner as the Board may designate in its sole and absolute discretion. 6.4 Working Capital Assessment. Each Owner (other than Declarant) of a Lot will pay a one-time working capital assessment (the "Working Capital Assessment") to the Association in such amount as may be determined by the Declarant or the Board, until expiration or termination of the Development Period, and the Board thereafter. The Working Capital Assessment hereunder will be due and payable to the Association upon the transfer of a Lot (including both transfers from Declarant to the initial Owner, and transfers from one Owner of a Lot to a subsequent Owner of a Lot). Each Working Capital Assessment will be collected from the transferee of a Lot upon the conveyance of the Lot from one Owner (including Declarant) to another (expressly including any reconveyance of the Lot upon resale or transfer thereof). 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 such levy. The Association may use the working capital to discharge operating expenses. The levy of any Working Capital Assessment will be effective only upon the Recordation of a written notice, signed by the Declarant or 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 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. In the event of any dispute regarding the application of the Working Capital Assessment to a particular Owner, the Declarant's during the Development Period, and thereafter the Board's, determination -38- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 regarding the application of the exemption will be binding and conclusive without regard to any contrary interpretation of this Section 6.4. 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 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. 6.5 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. 6.6 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 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. 6.7 Amount of Assessment. 6.7.1 Assessments to be Levied. The Board shall levy Assessments against each "Assessment Unit" (as defined in Section 6.7.2 below). Unless otherwise provided in this Declaration, Assessments levied pursuant to Section 6.3 and Section 6.6 shall be levied uniformly against each Assessment Unit allocated to a Lot. 6.7.2 Assessment Unit. Each Lot shall constitute one "Assessment Unit" unless otherwise provided in Section 6.7.3 and 6.7.4. 6.7.3 Assessment Exemption. Notwithstanding anything in this Declaration to the contrary,no Assessments shall be levied upon Lots owned by Declarant. -39- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 6.7.4 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. 6.8 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. 6.9 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 such highest rate, then at the rate of one and one half percent (1 1/2%)per month), together with all late charges, if any, 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. 6.10 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 6.8 and interest as provided in Section 6.9 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 6.1.2 above, and will bind each Lot in the hands of the Owner thereof, and such Owner's heirs, devisees, 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 and governmental assessment liens; (ii) all sums secured by a Recorded first mortgage lien or Recorded 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; (iii) home equity loans or home equity lines of credit which are secured by a Recorded second mortgage lien or Recorded second deed of trust lien of record; or (iv) as otherwise provided by Applicable Law; provided that, in the case of subparagraphs (ii), (iii) and (iv) 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 authorized officer, agent, or attorney of the -40- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 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 authorized 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 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 6.10, the Association will upon the request of the Owner, and at such Owner's cost, 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 authorized 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, equity or otherwise, terminate,in such manner as the Board deems appropriate, any utility or cable service provided through the Association and not paid for directly by an Owner or Resident to the utility or service 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 -41- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 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. 6.11 Exempt Property. The following areas will be exempt from the Assessments provided for in this Article: (i) All area dedicated and accepted by a public authority; (ii) The Common Area; and (iii) Any portion of the Property owned by Declarant. 6.12 Fines and Damages Assessment. 6.12.1 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 pursuant to the Fine and Collection Policy adopted by the Board. Any fine and/or charge levied in accordance with this Section 6.12 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 caused 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. -42- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 6.12.2 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 6.9 hereof and all costs of collection, including attorney's fees as herein provided, secured by the lien granted to the Association pursuant to Section 6.1.2 of this Declaration. 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 ORDINANCES AND REQUIREMENTS IMPOSED BY THE TOWN ARE APPLICABLE TO ALL LOTS. APPROVAL BY THE ARCHITECTURAL CONTROL COMMITTEE IS NOT A SUBSTITUTE FOR COMPLIANCE WITH SUCH ORDINANCES AND REGULATIONS. THIS DECLARATION DOES DO NOT PURPORT TO LIST OR DESCRIBE EACH ORDINANCE OR RESTRICTION WHICH MAY BE APPLICABLE TO A LOT. Until Declarant has delegated its right to appoint and remove all members of the ACC to the Board as provided in Section 7.2.1 below, the ACC will be acting solely in Declarant's interest and will owe no duty to any other Owner or the Association. Notwithstanding any provision in this Declaration to the contrary, Declarant may appoint a single person to exercise the rights of the ACC. 7.1 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. 7.2 Architectural Control Committee. 7.2.1 Composition. The ACC will be composed of not more than three (3) persons (who need not be Members or Owners) appointed as provided below. The ACC 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) all members of the ACC. Declarant may assign its right to appoint all 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) all members of the ACC. Any assignment by Declarant of the right to appoint and remove all 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 all members of the ACC, then on the date of such withdrawal, Declarant will have the right to appoint and remove (with or without cause) all members of the ACC. Declarant's right to appoint all members of the ACC will automatically be assigned to the Association upon the expiration of twelve (12) months after the expiration of the Development Period. Declarant, at its option, may create and assign specific duties and -43- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 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. The right to create, dissolve, and appoint members of such sub-committees will reside exclusively with Declarant until such time as Declarant has assigned its right 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. The Declarant or the Board, as applicable, shall appoint at least one (1) member of the ACC or sub-committee, as applicable, who is a licensed architect, for the purpose of reviewing, and providing recommendations related to, plans and specifications submitted to the ACC in accordance with Section 7.2.2 below. 7.2.2 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 7.2.3 to the ACC at the offices of Declarant, 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. 7.2.3 Design Guidelines. Declarant may adopt the initial Design Guidelines and, during the Development Period, will have the power from time to time, to adopt (unless previously adopted by Declarant), amend, modify, or supplement the Design Guidelines. Upon expiration or termination of the Development Period, the ACC, or any sub- committee thereof created pursuant to Section 7.2.1, will have the power from time to time, to amend, modify, or supplement the Design Guidelines;provided,however,that any amendment -44- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 to the Design Guidelines made by a sub-committee will only apply to the Improvements under the jurisdiction of such sub-committee, and during the Development Period, any such amendment, modification or supplement must be approved in advance and in writing by the Declarant. 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. 7.2.4 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. 7.2.5 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. 7.2.6 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. Each variance must also be Recorded; provided however, that failure to record a variance will not affect the validity thereof or give rise to any claim or cause of action against the ACC, including the Declarant 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 -45- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 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. 7.2.7 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 7.2.7 and may, in addition, consider any change in circumstances which may have occurred since the time of the original approval. 7.2.8 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. 7.2.9 Non-Liability of Committee Members. NEITHER DECLARANT, 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. 8.1 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: (i) 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 -46- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 Eligible Mortgage held, insured, or guaranteed by such Eligible Mortgage Holder; or (ii) 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 (iii) Any lapse, cancellation, or material modification of any insurance policy maintained by the Association. 8.2 Examination of Books. The Association will permit Mortgagees to examine the books and records of the Association during normal business hours. 8.3 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 9.1 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, 2065, 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. The foregoing sentence shall in no way be interpreted to mean sixty-seven percent (67%) of a quorum as established pursuant to the Bylaws. Notwithstanding any provision in this Section 9.1 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-one (21) years after the death of the last survivor of the now living, as of the date that this document is first Recorded, descendants of Elizabeth II, Queen of England. 9.2 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 -47- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 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. 9.3 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. 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. 9.4 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 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. 9.5 Enforcement. Except as otherwise provided herein, any Owner of a Lot, at such Owner's own expense, Declarant and the Association will have the right to enforce, by a proceeding at law or in equity, the Restrictions. The Association and/or the Declarant may initiate, defend or intervene in any action brought to enforce any provision of the Restrictions. Such right of enforcement will include both damages for and injunctive relief against the breach of any provision hereof. Every act or omission whereby any provision of the Restrictions is violated, in whole or in part, is hereby declared to be a nuisance and may be enjoined or abated by any Owner of a Lot (at such Owner's own expense), Declarant or the Association. Any violation of any Applicable Law pertaining to the ownership, occupancy, or use of any portion of the Property is hereby declared to be a violation of this Declaration and subject to all of the -48- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 enforcement procedures set forth herein. 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. Failure of the Declarant or the Association to enforce the terms and provisions of the Restrictions shall in no event give rise to any claim or liability against the Declarant, the Association, or any of their partners, directors, officers, or agents. EACH OWNER, BY ACCEPTING TITLE TO ALL OR ANY PORTION OF THE PROPERTY, HEREBY RELEASES AND SHALL HOLD HARMLESS EACH OF THE DECLARANT, THE ASSOCIATION, AND THEIR PARTNERS, DIRECTORS, OFFICERS, OR AGENTS FROM AND AGAINST ANY DAMAGES, CLAIMS, OR LIABILITY ASSOCIATED WITH THE FAILURE OF THE DECLARANT OR THE ASSOCIATION TO ENFORCE THE TERMS AND PROVISIONS OF THE RESTRICTIONS. 9.6 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. 9.7 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. 9.8 Conflicts. If there is any conflict between the provisions of this Declaration, the Certificate, the Bylaws, or any Rules and Regulations adopted pursuant to the terms of such documents, the provisions of this Declaration, the Certificate, the Bylaws, and the Rules and Regulations,in such order,will govern. 9.9 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. 9.10 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. -49- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 9.11 Damage and Destruction. The Association shall undertake the following actions subsequent to damage or destruction of all or any part of the Common Area covered by insurance. 9.11.1 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 9.11.1, means repairing or restoring the Common Area to substantially the same condition as existed prior to the fire or other casualty. 9.11.2 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. 9.11.3 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. 9.11.4 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. 9.11.5 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. 9.12 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 11.4 below. This Section 9.12 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, nor will this provision be constructed to prohibit or affect the creation of a condominium regime in accordance with the Texas Uniform Condominium Act. -50- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 9.13 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 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. 9.14 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, nor the Association shall have any obligation to relocate, prune, or thin trees or perform 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. 9.15 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. No representation or warranty is made that any systems or measures, including security monitoring systems or any gate, mechanism or system for limiting access to the Property or the Common Area, cannot be compromised or circumvented; or that any such system or security measures undertaken will in all cases prevent loss or provide the detection or protection for which the system is designed or intended. Each Owner acknowledges, understands, and shall be responsible for informing any Residents of such Owner's Lot that the Association, its Board, its employees, agents, and committees, and the Declarant are not insurers or guarantors of security or safety and that each person within the Property assumes all risks of personal injury and loss or damage to property, including any residences or Improvements constructed upon any Lot and the contents thereof, resulting from acts of third parties. ARTICLE 10 EASEMENTS 10.1 Right of Ingress and Egress. Declarant, its agents, employees, designees, successors or assigns 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 -51- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 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 paid directly to Declarant, any affiliate of Declarant, or a third party, by the Owner who receives the services. The Community Systems shall be the 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 or entity. 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 or entity 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 cable television and other 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. 10.2 Reserved Easements. All dedications, limitations, restrictions, easements, rights- of-way, licenses, leases, encumbrances and reservations shown on any Plat or otherwise Recorded against the Property and all grants and dedications of easements, rights-of-way, restrictions and related rights made by Declarant or any third party 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 dedications, limitations, restrictions, easements, rights-of-way, licenses, leases, encumbrances,reservations and other grants for the purpose of developing the Property. 10.3 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 -52- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 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 10.3. 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. 10.4 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. 10.5 Monument Sign Easement. Declarant hereby reserves for itself and the Association, an easement over and across the Property for the installation, maintenance, repair or replacement of one or more monument signs and/or appurtenant landscaping which serve the Property. Declarant will have the right,from time to time, to Record a written notice,which identifies those portions of the Property to which the easement reserved hereunder applies. Declarant designates the easement areas reserved hereunder as Common Area. 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. 10.6 Landscape Maintenance Easement. Each Owner, by accepting an interest in or title to a Lot, whether or not it is so expressed in the instrument of conveyance, grants to the Association an easement of access and entry over, across, under, and through the Property, including without limitation, each Lot (but excluding the residence or Improvements constructed thereon) to maintain landscaping in accordance with Section 2.15 hereof. ARTICLE 11 DEVELOPMENT RIGHTS 11.1 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 pursue the development, construction and marketing of the Property, the right to direct the size, shape, and composition of the Property, the right to create and/or designate Lots or Common Area, and to subdivide all or any -53- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 portion of the Property, subject to any limitations imposed on portions of the Property by any applicable Plat. Collectively, the rights reserved to the Declarant as set forth in this Declaration shall be known as the "Development Rights", and Declarant hereby reserves the right and privilege for itself, and/or its assigns, to exercise the Development Rights, and any other rights reserved on behalf of the Declarant as set forth in this Declaration until twenty-four (24) months after the expiration or termination of the Development Period, except the right to appoint and remove Board members and officers of the Association which shall be governed by the provisions set out in Section 4.3. These rights may be exercised with respect to any portions of the Property or the Common Area. As each portion of the Property is developed or dedicated, Declarant may designate the use, classification and such additional covenants, conditions and restrictions as Declarant may deem appropriate for such Property. 11.2 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 11.2 until twenty-four months (24) months after expiration or termination of the Development Period. 11.3 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: (i) 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; (ii) 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 (iii) A legal description of the added land. -54- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 11.4 Withdrawal of Land. Declarant may, at any time and from time to time, reduce or withdraw land 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 removal 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: (i) 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; (ii) A statement that the provisions of this Declaration will no longer apply to the withdrawn land; and (iii) A legal description of the withdrawn land. 11.5 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. ARTICLE 12 DISPUTE RESOLUTION 12.1 Introduction and Definitions. The Association, the Owners, Declarant, all persons subject to this Declaration, and any person not otherwise subject to this Declaration who agrees to submit to this Article (collectively,the "Parties") agree to encourage the amicable resolution of disputes involving the Property and to avoid the emotional and financial costs of litigation and arbitration if at all possible. Accordingly,each Party hereby covenants and agrees that this Article applies to all Claims as hereafter defined. This Article 12 may only be amended with the prior written approval of the Declarant, the Association (acting through a Majority of the Board), and Owners holding 100% of the votes in the Association. As used in this Article only,the following words,when capitalized,have the following specified meanings: (i) "Claim" means: A. Claims relating to the rights and/or duties of Declarant, the Association, or an Owner,under the Restrictions. B. Claims relating to the acts or omissions of the Declarant or the Association during control and administration of the Association, any claim asserted against the ACC, and any claims asserted -55- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 against a Board or a person serving as a Board member or officer of the Association, or the ACC. C. Claims relating to the design or construction of Improvements on the Common Areas or Lots located within the Property. (ii) "Claimant" means any Party having a Claim against any other Party. (iii) "Respondent" means any Party against which a Claim has been asserted by a Claimant. 12.2 Mandatory Procedures. Claimant may not initiate any proceeding before any administrative tribunal seeking redress of resolution of its Claim until Claimant has complied with the procedures of this Article. As provided in Section 12.8 below, a Claim will be resolved by binding arbitration. 12.3 Claim Affecting Common Areas. In accordance with Section 4.17 of this Declaration, the Association does not have the power or right to institute, defend, intervene in, settle, or compromise litigation or administrative proceedings: (i) in the name of or on behalf of any Lot Owner (whether one or more); or (ii) pertaining to a Claim, as defined in Section 12.1 above, relating to the design or construction of Improvements on a Lot (whether one or more). In the event the Association or a Lot Owner asserts a Claim related to the Common Areas, as a precondition to providing the Notice defined in Section 12.4, initiating the mandatory dispute resolution procedures set forth in this Article 12, or taking any other action to prosecute a Claim related to the Common Areas, the Association or a Lot Owner, as applicable, must: 12.3.1 Independent Report on the Condition of the Common Areas. Obtain an independent third-party report (the "Common Area Report") from a licensed professional engineer which: (i) identifies the Common Areas subject to the Claim including the present physical condition of the Common Areas; (ii) describes any modification, maintenance, or repairs to the Common Areas performed by the Lot Owner(s) and/or the Association; and (iii) provides specific and detailed recommendations regarding remediation and/or repair of the Common Areas subject to the Claim. For the purposes of this Section, an independent third- party report is a report obtained directly by the Association or a Lot Owner and paid for by the Association or a Lot Owner, as applicable, and not prepared by a person employed by or otherwise affiliated with the attorney or law firm that represents or will represent the Association or a Lot Owner in the Claim. As a precondition to providing the Notice described in Section 12.4, the Association or Lot Owner must provide at least ten (10) days prior written notice of the inspection to each party subject to a Claim which notice shall identify the independent third-party engaged to prepare the Common Area Report, the specific Common Areas to be inspected, and the date and time the inspection will occur. Each party subject to a Claim may attend the inspection, personally or through an agent. Upon completion, the Common Area Report shall be provided to each party subject to a Claim. In addition, before providing the Notice described in Section 12.4, the Association or the Lot Owner, as applicable, -56- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 shall have permitted each party subject to a Claim the right, for a period of ninety (90) days, to inspect and correct, any condition identified in the Common Area Report. 12.3.2 Claim by the Association - Owner Meeting and Approval. If the Claim is prosecuted by the Association, obtain approval from Members holding sixty-seven percent (67%) of the votes in the Association to provide the Notice described in Section 12.4, initiate the mandatory dispute resolution procedures set forth in this Article 12, or take any other action to prosecute a Claim, which approval from Members must be obtained at a special meeting of Members called in accordance with the Bylaws. The notice of meeting required hereunder will be provided pursuant to the Bylaws but the notice must also include: (i) the nature of the Claim,the relief sought,the anticipated duration of prosecuting the Claim, and the likelihood of success; (ii) a copy of the Common Area Report; (iii) a copy of any proposed engagement letter, with the terms of such engagement between the Association and an attorney to be engaged by the Association to assert or provide assistance with the claim (the "Engagement Letter"); (iv) a description of the attorney fees, consultant fees, expert witness fees, and court costs, whether incurred by the Association directly or for which it may be liable if it is not the prevailing party or that the Association will be required, pursuant to the Engagement Letter or otherwise, to pay if the Association elects to not proceed with the Claim; (v) a summary of the steps previously taken, and proposed to be taken, to resolve the Claim; (vi) an estimate of the impact on the value of each Lot if the Claim is prosecuted and an estimate of the impact on the value of each Lot after resolution of the Claim; (vii) an estimate of the impact on the marketability of each Lot if the Claim is prosecuted and during prosecution of the Claim, and an estimate of the impact on the value of each Lot during and after resolution of the Claim; (viii) the manner in which the Association proposes to fund the cost of prosecuting the Claim; and (ix) the impact on the finances of the Association, including the impact on present and projected reserves, in the event the Association is not the prevailing party. The notice required by this paragraph must be prepared and signed by a person other than, and not employed by or otherwise affiliated with, the attorney or law firm that represents or will represent the Association or Lot Owner, as applicable, in the Claim. In the event Members approve providing the Notice described in Section 12.4, or taking any other action to prosecute a Claim, the Members holding a Majority of the votes in the Association, at a special meeting called in accordance with the Bylaws, may elect to discontinue prosecution or pursuit of the Claim. 12.4 Notice. Claimant must notify Respondent in writing of the Claim (the "Notice"), stating plainly and concisely: (i) the nature of the Claim, including date, time, location, persons involved, and Respondent's role in the Claim; (ii) the basis of the Claim (i.e., the provision of the Restrictions or other authority out of which the Claim arises); (iii) what Claimant wants Respondent to do or not do to resolve the Claim; and (iv) that the Notice is given pursuant to this Section. For Claims governed by Chapter 27 of the Texas Property Code, the time period for negotiation in Section 12.5 below, is equivalent to the sixty (60) day period under Section 27.004 of the Texas Property Code. If a Claim is subject to Chapter 27 of the Texas Property Code, the Claimant and Respondent are advised, in addition to compliance with -57- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 Section 12.5, to comply with the terms and provisions of Section 27.004 during such sixty (60) day period. Section 12.5 does not modify or extend the time period set forth in Section 27.004 of the Texas Property Code. Failure to comply with the time periods or actions specified in Section 27.004 could affect a Claim if the Claim is subject to Chapter 27 of the Texas Property Code. The one hundred and twenty (120) day period for mediation set forth in Section 12.6 below, is intended to provide the Claimant and Respondent with sufficient time to resolve the Claim in the event resolution is not accomplished during negotiation. If the Claim is not resolved during negotiation, mediation pursuant to Section 12.6 is required without regard to the monetary amount of the Claim. If the Claimant is the Association, the Notice will also include: (a) a true and correct copy of the Common Area Report; (b) a copy of the Engagement Letter; (c) copies of all reports, studies, analyses, and recommendations obtained by the Association related to the Common Area which forms the basis of the Claim; (d) a true and correct copy of the special meeting notice provided to Members in accordance with Section 12.4 above; and (e) reasonable and credible evidence confirming that Members holding sixty-seven percent (67%) of the votes in the Association approved providing the Notice. If the Claimant is not the Association and pertains to the Common Areas, the Notice will also include a true and correct copy of the Common Area Report. 12.5 Negotiation. Claimant and Respondent will make every reasonable effort to meet in person to resolve the Claim by good faith negotiation. Within sixty (60) days after Respondent's receipt of the Notice, Respondent and Claimant will meet at a mutually acceptable place and time to discuss the Claim. If the Claim involves all or any portion of the Property, then at such meeting or at some other mutually-agreeable time, Respondent and Respondent's representatives will have full access to the Property that is subject to the Claim for the purposes of inspecting the Property. If Respondent elects to take corrective action, Claimant will provide Respondent and Respondent's representatives and agents with full access to the Property to take and complete corrective action. 12.6 Mediation. If the parties negotiate, but do not resolve the Claim through negotiation within one-hundred twenty (120) days from the date of the Notice (or within such other period as may be agreed on by the parties), Claimant will have thirty (30) additional days within which to submit the Claim to mediation under the auspices of a mediation center or individual mediator on which the parties mutually agree. The mediator must have at least five (5) years of experience serving as a mediator and must have technical knowledge or expertise appropriate to the subject matter of the Claim. If Claimant does not submit the Claim to mediation within the 30-day period, Respondent will submit the Claim to mediation in accordance with this Section 12.6. 12.7 Termination Of Mediation. If the Parties do not settle the Claim within thirty (30) days after submission to mediation, or within a time deemed reasonable by the mediator, the mediator will issue a notice of termination of the mediation proceedings indicating that the -58- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 Parties are at an impasse and the date that mediation was terminated. Thereafter, Claimant may file suit or initiate arbitration proceedings on the Claim, as appropriate and permitted by this Article. 12.8 Binding Arbitration-Claims. All Claims must be settled by binding arbitration. Claimant or Respondent may, by summary proceedings (e.g., a plea in abatement or motion to stay further proceedings), bring an action in court to compel arbitration of any Claim not referred to arbitration as required by this Section 12.8. 12.8.1 Governing Rules. If a Claim has not been resolved after mediation as required by Section 12.6, the Claim will be resolved by binding arbitration in accordance with the terms of this Section 12.8 and the rules and procedures of the American Arbitration Association ("AAA") or, if the AAA is unable or unwilling to act as the arbitrator, then the arbitration shall be conducted by another neutral reputable arbitration service selected by Respondent in Tarrant County, Texas. Regardless of what entity or person is acting as the arbitrator, the arbitration shall be conducted in accordance with the AAA's "Construction Industry Dispute Resolution Procedures" and, if they apply to the disagreement, the rules contained in the Supplementary Procedures for Consumer-Related Disputes. If such Rules have changed or been renamed by the time a disagreement arises,then the successor rules will apply. Also, despite the choice of rules governing the arbitration of any Claim, if the AAA has, by the time of Claim, identified different rules that would specifically apply to the Claim, then those rules will apply instead of the rules identified above. In the event of any inconsistency between any such applicable rules and this Section 12.8, this Section 12.8 will control. Judgment upon the award rendered by the arbitrator shall be binding and not subject to appeal, but may be reduced to judgment in any court having jurisdiction. Notwithstanding any provision to the contrary or any applicable rules for arbitration, any arbitration with respect to Claims arising hereunder shall be conducted by a panel of three (3) arbitrators,to be chosen as follows: (i) One arbitrator shall be selected by Respondent, in its sole and absolute discretion; (ii) One arbitrator shall be selected by the Claimant, in its sole and absolute discretion; and (iii) One arbitrator shall be selected by mutual agreement of the arbitrators having been selected by Respondent and the Claimant, in their sole and absolute discretion. 12.8.2 Exceptions to Arbitration; Preservation of Remedies. No provision of, nor the exercise of any rights under, this Section 12.8 will limit the right of Claimant or Respondent, and Claimant and the Respondent will have the right during any Claim, to seek, use, and employ ancillary or preliminary remedies, judicial or otherwise, for the purposes of realizing upon,preserving, or protecting upon any property,real or personal, that is involved in a Claim, including, without limitation, rights and remedies relating to: (i) exercising self-help -59- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 remedies (including set-off rights); or (ii) obtaining provisions or ancillary remedies such as injunctive relief, sequestration, attachment, garnishment, or the appointment of a receiver from a court having jurisdiction before, during, or after the pendency of any arbitration. The institution and maintenance of an action for judicial relief or pursuit of provisional or ancillary remedies or exercise of self-help remedies shall not constitute a waiver of the right of any party to submit the Claim to arbitration nor render inapplicable the compulsory arbitration provisions hereof. 12.8.3 Statute of Limitations. All statutes of limitation that would otherwise be applicable shall apply to any arbitration proceeding under this Section 12.8. 12.8.4 Scope of Award; Modification or Vacation of Award. The arbitrator shall resolve all Claims in accordance with the applicable substantive law. The arbitrator may grant any remedy or relief that the arbitrator deems just and equitable and within the scope of this Section 12.8 and subject to Section 12.9 below (attorney's fees and costs may not be awarded by the arbitrator); provided, however, that for a Claim, or any portion of a Claim governed by Chapter 27 of the Texas Property Code, or any successor statute, in no event shall the arbitrator award damages which exceed the damages a Claimant would be entitled to under Chapter 27 of the Texas Property Code. In all arbitration proceedings the arbitrator shall make specific, written findings of fact and conclusions of law. In all arbitration proceedings the parties shall have the right to seek vacation or modification of any award that is based in whole, or in part, on (i) factual findings that have no legally or factually sufficient evidence, as those terms are defined in Texas law; (ii) conclusions of law that are erroneous; (iii) an error of federal or state law; or (iv) a cause of action or remedy not expressly provided under existing state or federal law. In no event may an arbitrator award speculative, consequential, or punitive damages for any Claim. 12.8.5 Other Matters. To the maximum extent practicable, an arbitration proceeding hereunder shall be concluded within one hundred and eighty (180) days of the filing of the Claim for arbitration by notice from either party to the other. Arbitration proceedings hereunder shall be conducted in Tarrant County, Texas. The arbitrator shall be empowered to impose sanctions and to take such other actions as the arbitrator deems necessary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the Texas Rules of Civil Procedure and Applicable Law. Each party agrees to keep all Claims and arbitration proceedings strictly confidential, except for disclosures of information required in the ordinary course of business of the parties or by Applicable Law or regulation. In no event shall any party discuss with the news media or grant any interviews with the news media regarding a Claim or issue any press release regarding any Claim without the written consent of the other parties to the Claim. 12.9 Allocation Of Costs. Notwithstanding any provision in this Declaration to the contrary, each party bears all of its own costs incurred prior to and during the proceedings described in the Notice, Negotiation, Mediation, and Arbitration sections above, including its -60- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-4994v.10 59948-2 Res 19-23 attorney's fees. Respondent and Claimant will equally divide all expenses and fees charged by the mediator and arbitrator. 12.10 General Provisions. A release or discharge of Respondent from liability to Claimant on account of the Claim does not release Respondent from liability to persons who are not party to Claimant's Claim. 12.11 Period of Limitation. 12.11.1 For Actions by an Owner. The exclusive period of limitation for any of the Parties to bring any Claim, including,but not limited to, a Claim of construction defect or defective design of Improvements on the Common Areas or Lots, shall be the earliest of: (i) for Claims alleging construction defect or defective design, two (2) years and one (1) day from the date that the Owner discovered or reasonably should have discovered evidence of the Claim; (ii) for Claims other than those alleging construction defect or defective design, four (4) years and one (1) day from the date that the Owner discovered or reasonably should have discovered evidence of the Claim. 12.11.2 For Actions by the Association. The exclusive period of limitation for the Association to bring any Claim, including,but not limited to, a Claim of construction defect or defective design of the Common Areas, shall be the earliest of: (i) for Claims alleging construction defect or defective design, two (2) years and one (1) day from the date that the Association or its agents discovered or reasonably should have discovered evidence of the Claim; (ii) for Claims other than those alleging construction defect or defective design of the Common Areas, four (4) years and one (1) day from the date that the Association discovered or reasonably should have discovered evidence of the Claim. 12.12 Funding Arbitration and Litigation. The Association must levy a Special Assessment to fund the estimated costs of arbitration, including estimated attorney's fees, conducted pursuant to this Article 12 or any judicial action initiated by the Association. The Association may not use its annual operating income or reserve funds or savings to fund arbitration or litigation, unless the Association's annual budget or a savings account was established and funded from its inception as an arbitration and litigation reserve fund. [SIGNATURE PAGE FOLLOWS] -61- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-499400 59948-2 Res 19-23 EXECUTED to be effective on the date this instrument is Recorded. DECLARANT: WILBOW-SOLANA LLC, a Texas limited liability company By: Printed Name: Title: THE STATE OF TEXAS § COUNTY OF § This instrument was acknowledged before me on this day of 20 ,by of Wilbow-Solana LLC, a Texas limited liability company, on behalf of said company. (seal) Notary Public, State of Texas -62- THE KNOLLS AT SOLANA DECLARATION OF COVENANTS,CONDITIONS AND RESTRICTIONS 4825-0959-49940 059948-2 Res 19-23 AFTER RECORDING RETURN TO: Enrique Montenegro,AIA,NCARB Stocker Hoesterey Montenegro 4514 Travis Street,Suite 302 Dallas,Texas 75205 Email:emontenegro@shmarchitects.com - 7 THE KNOLLS A f SO L ANA The Knolls at Solana DESIGN GUIDELINES Adopted: WILBOW-SOLANA LLC,a Texas Limited Liability Corporation By: Printed Name: Title: Adopted by WILBOW-SOLANA LLC,a Texas Limited Liability Corporation,in accordance with that certain Declaration of Covenants,Conditions and Restrictions for The Knolls at Solana,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). Res 19-23 TABLE OF CONTENTS Introduction 3 CHAPTER ONE Architectural Design 5 Overall Intent of the Architectural Guidelines 5 Maximum Height Limitations 7 General Massing Requirements 9 Roofs 11 Garages 12 Chimneys and Other Vertical Elements 13 Detached/Ancillary Structures 14 Fenestration:Doors and Windows 14 Garage Doors 17 Exterior Finish Materials and Details 17 Foundations 18 Exterior Siding Materials 20 Roof Materials 25 Gutters and Downspouts 26 Trim, Details, Texture and Ornamentation 27 Porches/Balconies/Outdoor Spaces 29 Exterior Light Fixtures 30 Miscellaneous Requirements 32 Solar Applications 32 CHAPTER TWO Site and Landscape Design 34 Overall Intent of the Site and Landscape Guidelines 34 Location of the Home on the Homesite 34 Homesite Diagram and Building Envelopes 35 Combining Homesites 38 Tree and Shrub Thinning and Removal 38 Tree Removal in the Building Envelope 38 Pre-Construction Site Thinning and Clean Up 39 Driveways and Address Markers 41 Grading 44 Retaining Walls 44 1 Res 19-23 Drainage 46 Parking 47 Exterior Hardscape Design:Outdoor Stairs,Paths, Courtyards, Terraces 47 Screen Walls,Fences and Gates 49 Landscape Structures, Site Furnishings and Outdoor Art 52 Basketball Goals and Sporting Equipment 53 Playscapes and Sport Courts 54 Water Features, Spas and Pools 54 Planting Design 56 Irrigation 59 Exterior Lighting 59 Exterior Holiday Decoration 60 Air-Conditioning and Other Mechanical Equipment 60 Barbecue Grills 61 CHAPTER THREE Construction Guidelines 62 CHAPTER FOUR Design Review Process 65 Project Types for Review 65 Design Review Process Overview 65 Actions and Approvals 66 Approved Design Professionals 67 Protocol for Approval of Architects 67 Pre-Design Conference 68 Preliminary Design Review 68 Final Design Review 70 Changes to Approved Plans 73 Work in Progress Observations 73 Right of Waiver 74 Non-Waiver,No Inadvertent Precedents 74 Design Review Schedule 74 Plan Submittals and Review Fees 76 Attachments ACC Application 78 Supplement to the Design Guidelines—Shared Retaining Wall Rules 80 North Texas Plant List 83 2 Res 19-23 INTRODUCTION Any notice or information required to be submitted to the ACC under these Design Guidelines hereunder will be submitted to the ACC at 5307 E. Mockingbird Lane, Suite 900,Dallas TX 75206 Phone:972-479-0697 Background The Knolls at Solana is a master planned community located in Tarrant County, Texas. Lots 2-20,Block A and Lots 2-4,6-11, 13-15,18-20,22-25,27-30,Block B,Lots 2-15,Block C (hereinafter "The Knolls") a subdivision in Tarrant County Texas, according to the plat Recorded under Document No. , (the "Property"), are subject to the terms and provisions of that certain Declaration of Covenants,Conditions and Restrictions for Knolls at Solana,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. Architectural Control Committee (ACC) Article 7 of the Declaration includes procedures and criteria for the construction of improvements within the The Knolls 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 three(3)members who have been appointed by WILBOW- SOLANA LLC,a Texas Limited Liability Corporation(the"Declarant").At least one member of the ACC shall be a licensed architect registered in the state of Texas.As provided in Article 7 of the Declaration,the Declarant has a substantial interest in ensuring that Improvements within The Knolls 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.The members of the ACC appointed by Declarant act solely in Declarant's interest and shall owe no duty to any other Owner or The Knolls at Solana Residential Community,Inc. (the "Association"). Governmental Requirements Governmental ordinances and regulations and the Planned Development zoning for The Knolls are applicable to all Lots. 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 The Knolls. 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 3 Res 19-23 Owner that any Improvement complies with the terms and provisions of all encumbrances which may affect the Owner's Lot. Certain encumbrances may benefit parties whose interests are not addressed by the ACC.All construction must meet applicable regulations of Federal, State, and local requirements, including but not limited to, applicable zoning, building construction codes,fire sub-code necessary for the intended use of any Lot. 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 from time to time. All amendments shall become effective upon publication to the community website. 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. 4 Res 19-23 CHAPTER ONE ARCHITECTURAL DESIGN Overall Intent of the Architectural Guidelines The developer encourages the design of homes that are appropriate for the community's setting and location and to complement the surrounding natural environment.While there are no stylistic restrictions in the Knolls at Solana, homes should be visually connected through the use of similar materials and colors.These guidelines should be read in tandem with the Town of Westlake's Building Quality Manual. In the event where there is a conflict,the Building Quality Manual will rule. Guideline Basics The essential mission of these Guidelines is to protect and enhance the value of the entire community.They have been created with the best of intent and draw from the experience of its authors and numerous successful communities of similar quality.The ACC has broad capacity to interpret the Guidelines to either stiffen or relax requirements based on its mission to realize the intent of these Guidelines over and above the enforcement of the quantitative requirements PROVIDED THE INTENT OF THE ZONING AND BUILDING QUALITY MANUAL ARE ENFORCED. Interpretations of the ACC shall always comply with the Town of Westlake's Building Quality Manual,Zoning and Ordinances. With the exception of any guideline provision addressing a particular architectural style, said guidelines shall be enforced by Town staff in reviewing building permit applications for compliance with the provisions contained in the Building Quality Manual referenced in Chapter 62,Article III of the Town of Westlake's Code of Ordinances.PD 6 states:"Prior to the approval of the preliminary site evaluation,the developer shall submit final design guidelines for approval by the Town Council that shall be recorded with the private deed covenants, conditions, and restrictions. Said guidelines shall incorporate the recommendations contained in the Building Quality Manual referenced in Chapter 62, Article III of the Code of Ordinances.Guideline provisions to be enforced by staff include, but may not be limited to,general building articulation, massing, fenestration, roof slope and building materials. Each topic in this chapter is generally divided into three categories: • Intent • Quantitative/Specific Requirements • Subjective Requirements In all cases, the expressed intent serves as the primary guide to the ACC in its decision making.To ensure a minimum level of competence,a Licensed Architect is required for all homes at The Knolls at Solana. 5 Res 19-23 / m _» , eq � 2 ve� f1f) 7 � � \ \ — § § W 6 . _ ;}} 2 \ƒ} o / ` 33 ; & S\�\ § • � � R � ; : �l\\ : ! | )- $ ® ® 6 �+ z till, f 7 ( Aw , - ' AW 6 a1$23 Maximum Height Limitation Intent Homes at The Knolls are generally to be limited to two stories in height(above grade)with the exception of homes with walk-out basements that may be three stories in height with two stories above the exposed area of the basement.Single story homes are also welcomed. Lots 13,14,15 and 30,Block B are limited to a single story above grade. Lots 7,9,10,11 and 15,Block C are limited to a single story above grade. See Preliminary Concept Plan on previous page. raEG aAMOFY of MAX RIGZG riEl T- I I T__1 — ar r.Q f 1EILIf46 cE1LIPlr QRL^LlKP LVL F.F. I I 2a'-o MAX rVEAL ECG.wl 40-O" MAX AWILCIN6 F'"mLGrE r',¢EE C-AAWYY, ryr. JJ !2 9 Ys y t} II I I 1 MAY Alpar MOWIr / N9J-o.� as AFW r� 1 � r rA PLP7r r 6RBV/VbLKFaP: J sjp gp!b� MA,Y 6L06 6Nli6LO�W 1 FOR THE LOTS ABOVE, THE ROOFLINE SHOULD BE A MINIMUM OF 10'BELOW THE SURROUNDING TREE CANOPY 7 Res 19-23 Quantitative/Specific Requirements Homes at The Knolls are required to be composed of attached simple volumes that move up and down with the topography. Therefore, the Maximum Building Height is determined at multiple points on each home on a volume by volume basis.The ACC will have final say in the determination of what constitutes the delineation between volumes. 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 existing 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, however the measurement shall exclude grades where walk out basements exist. Oj-A—F AOOV6 i5&577N6 NATUF'-A�«ftb� oa �X/ST/N6 N/1Tv�f� 6 a A7 -I-!;T FUGL (�Me. j -------------- 2 BUILDING HEIGHT AS MEASURED FROM HIGHEST EXISTING NATURAL GRADE AT THE FIRST FULL LEVEL The Maximum Height for individual volumes is limited as follows: • Single Story Volumes:20 feet to ridge and 10'below tree canopy • Two Story Volumes:28 feet for all other lots not restricted • Two Story Volumes plus walk-out basements: 28 feet above existing grade exclusive of walk-out basement The height limitations imposed above shall not apply to chimneys and vent stacks,cupolas, or other architectural features that are not intended for occupancy or storage. Views are neither guaranteed,preserved,nor protected within The Knolls. 8 Res 19-23 General Massing Requirements Intent The general form and massing of homes in The Knolls are to reflect a residential scale that achieves the following: • Responds to natural conditions such as topography and existing specimen trees. • Works within the structural limits of stone,wood and other natural materials. • Is composed of multiple,simple volumes with discrete roofs. The design for a home in The Knolls must therefore accomplish the following: • Appear residential in scale. • Include single story elements. • Be composed of multiple, simple volumes as appropriate for the scale of a home. • Arrange those volumes with balance and rhythm. • Incorporate roof forms that step down from a dominant,usually central volume. • Express the nature and organization of the home's interior spaces through articulation of volumes and fenestration patterns. • Step up or down with grade using variation in the heights of foundations, walls and roof forms such that the structure appears integrated into its natural setting. • Include covered and/or uncovered spaces such as balconies, courtyards and porches that enhance the composition of the larger volumes of the home. • Include the garage in the composition such that it appears subordinate to the rest of the home. Site Coverage Refer to the lot coverage standards which are addressed in the Planned Development document in Section 2 B. However, for lots which exceed 11,000 square feet of area, the provision is hereby granted that the maximum building footprint for a home, including one story and two story residences,may be increased up to ten percent(10%)of the 5,000 square foot maximum footprint.Footprint is defined as all areas that are contained within the ground floor air-conditioned space, garages and covered patios of the main residence (excludes open porches, patios, porte-cocheres, or other unenclosed areas and accessory buildings). 9 Res 19-23 SEE MASSING DIAGRAMS OPPOSITE PAGE C�7 � ----------------- 00 W 10 Res 19-23 F 1 � f. iL -191 3 ANEXAMPLE OF HOME WITH ONE AND TWO STORYMASSES. Quantitative/Specific Requirements A minimum of two distinct"masses"or volumes is required for each home,at least one of which must be a single story element. For larger homes, the ACC may require more than two masses as it deems required to maintain a consistency in the composition and residential scale of the volumes that make up the homes within the community. The Enclosed Area of the upper floor massing may not exceed 50% of the Enclosed Area for the main floor. For this calculation, double height spaces are included in the measurement of the Enclosed Area of the upper floor. Exterior elements including exterior walls and roof planes and ridgelines may not have an unbroken horizontal length in excess of 35 feet. For this calculation, roof overhangs are not included in the measurement of the horizontal length. In the assessment of roof planes and exterior walls, the ACC will determine what constitutes a "break" in the plane; for example, a small dormer may not be deemed a sufficient "break" while a larger dormer may suffice. Homes built on sloping sites must step down with the topography,breaking the apparent floor and roof lines at locations as determined by the extremity of the slope.The volumetric expression must,however,be maintained at a residential scale and not appear to be either palatial or institutional. Roofs Intent Roofs are generally required to be simple in form and appear logical to construct. Their design should not appear to be an afterthought to the design of the floor plan. 11 Res 19-23 Quantitative/Specific Requirements Roof forms are limited to gable,shed and hip forms with dormers as secondary forms.Flat and curved roofs are also acceptable. Mansard roofs are not permitted. No more than 50%of the total roof may be designed as a single plane. No more than 75% of the roof may be designed as a single gable; the ACC may reduce this maximum requirement for particularly large homes as it deems necessary. A shed dormer may not exceed 2/3 of the area of the roof plane to which it is attached. Dormers must be functional to allow actual window openings and head heights for upper level spaces as well as bring light into first floor spaces;"false" dormers are prohibited. � r ■ p THE ABOVE DIAGRAM ILLUSTRATES ROOF BREAKS Garages Front facing garage doors are allowed if located further back on the lot than any other portion of the residence, and are in a motor court setting. Car ports are permissible provided that they are architecturally consistent with the rest of the home and landscaping is used to screen the paved area. Car ports should not be used to reduce or eliminate the garage requirement. Provide architectural elements such as recessed doors, awnings and single-stall doors to articulate garage elevations. 12 Res 19-23 4 ANEXAMPLE OF STEEL AND GLASS GARAGE DOORS Chimneys and Other Vertical Elements Intent Chimneys are important elements in the overall formal composition of homes at The Knolls.They are required to be expressed as if they are serving a wood burning fire place in scale and height.Multi-story tower or turret elements are generally not permitted. Quantitative/Specific Requirements When adjacent to an exterior wall, the chimney must start at grade, be offset from the exterior wall a minimum of 1 foot and be of sufficient height to serve a wood burning fire place,even in situations when there is a gas appliance in lieu of a traditional firebox.Spark arrestors must be shielded from view with an architectural chimney cap. Vents for direct vent fireplaces should not face the street. 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. AL r - - F� 13 Res 19-23 I � Ail\ 4 Examples of architectural chimney caps Subjective Requirement Chimneys must appear to be of sufficient scale to be self-supporting. Detached/Ancillary Structures Intent Detached garages, guest houses,home offices, art studios,play houses, garden sheds and other ancillary structures are encouraged. They must,however,be designed as part of a composition with the primary structure, subordinate in scale and consistent with its architectural vocabulary. Quantitative/Specific Requirements In most circumstances, the Enclosed Area of detached structures other than garages shall be limited to 150 sf. 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. Subjective Requirements Detached structures must be consistent in massing, materials and style with the primary structure and are,in general,also subject to these Guidelines. Fenestration Intent Windows and doors must be designed in scales and patterns that are both complimentary to the form of the home and also expressive of the internal organization of the home. In combination with the form of the various components of the building, an observer of the exterior of the home should largely be able to identify the functions of the rooms behind the windows. Window and door patterns are to be characterized by simple forms and a high level of detail. 14 Res 19-23 Front doors, in particular, are to be of high quality and craft and consistent with the requirements for simple forms and patterns for the rest of the architecture of homes in The Knolls. Quantitative/Specific Requirements Windows Rectangular or square windows are encouraged.Special exceptions may be granted by the ACC for horizontal or banded windows when deemed appropriate to the style of the proposed architecture provided that the style meets ACC approval.Arched windows are permissible only in areas such as stone walls where they are consistent with a structural or load----bearing expression.Glass block is prohibited for all exterior applications. Double hung,single hung,casement,awning and fixed windows are appropriate.Divided lite patterns are encouraged. The ACC may also approve — as an alternative — gangs of fixed or single hung windows that create a similar effect."Snap-in"or removable mullions are not permitted. Approved window materials include wood,metal-clad,steel,aluminum or fiberglass clad. At a minimum, windows must be double-pane. Glass may be coated or tinted to control heat gain but reflective and etched glass surfaces are prohibited. Commercial storefront window systems are allowed provided they are used in floor to ceiling glazing conditions. Metallic finishes such as clear-anodized aluminum are not permitted.Vinyl windows are prohibited. Owners will be required to submit proposed manufacturers at final design review. Windows that are set in stone, brick, or stucco walls must be recessed a minimum of 3 inches.The expression of structural headers over windows is encouraged. Doors Approved door materials include wood, metal-clad, steel, aluminum or fiberglass clad. Materials that appear artificial are prohibited.Owners will be required to submit proposed manufacturers at final design review. Doors that are set in stone,brick,or stucco walls must be recessed a minimum of 3 inches. The expression of structural headers over doors is encouraged. Doors shall have a minimum 8'-0"height. 15 Res 19-23 5 THIS HOUSE IS AN EXAMPLE OF LARGE EXPANSES OF GLASS USED TO CONNECT MASONRY MASSES Subjective Requirements General All elevations must have sufficient fenestration to create visual interest and to prevent the appearance of blank wall areas. Windows and doors must be balanced such that the majority of openings are not concentrated on single elevations. Large door and window openings are encouraged to connect interior spaces with outdoor living areas such as porches and courtyards. In some cases, glazing from floor to ceiling may be appropriate. Trim is to be consistent in material,color and proportion with the details of the rest of the structure. Windows and Skylights The solar orientation of windows must be considered in their design. On south and west facing exposures,appropriate overhangs in the form of shed roofs or extended overhangs are recommended. In general, dormers are preferred over skylights. Skylights are, however, permitted provided that they are (1) located in areas that cannot be seen from the street, (2) utilize flat glass in lieu of the older plastic"bubble"designs and(3)are colored to match the roof. Window colors are to be complimentary to the color palette of the rest of the home and are to be drawn from the following:bronze,copper,brown or other earth tones,black. Doors Hardware for exterior doors including hinges, latches,handles and pulls must be chosen for their high quality and artistic expression. Wrought iron,bronze, copper, satin nickel or similar materials are required. 16 Res 19-23 In particular,the main entry door is subject to special review to ensure that it is in keeping with the community's high standards of quality and consistent with the overall design of the home. Art glass may be included but is also subject to similar special review. Doors are to be stained or painted (with the exception of glass and some types of metal doors).Color used to emphasize a home's front door is allowed. Garage Doors Intent Single-wide garage doors are preferred over double-wide. Garage doors must be made of materials and include details that are commensurate with the high standards of these Guidelines. Garage doors shall be made of sectional wood, or be wood clad, or glass and steel. Garage doors shall be recessed a minimum of six inches from the plane of the adjacent wall. Quantitative/Specific Requirements Garage doors must be clad with wood or metal that coordinate with the exterior materials and windows and doors on the house. Metal-framed doors with frosted glass panels are also allowed. Owners will be required to submit proposed manufacturers at final design review. Double-wide doors are permitted provided that the garage doors are set back from the street a minimum of 10'-0" from the front yard setback or face the side yard and that the door is designed with cladding that visually minimizes the width of the door. Subjective Requirements The ACC is required to scrutinize the proposed cladding design to ensure that: • It is consistent with the rest of the home in style • Architectural details are included to visually minimize the impact of the doors from the street or common areas. Doors are to be stained or painted or may be clad to match windows and are to be either the same color as the exterior siding or a slightly darker color that is still within the generally approved earth tones and hues. Exterior Finish Materials and Details Intent The exterior finish materials and details of homes in The Knolls must appear to be natural. The application of exterior materials and details must be coherently applied across the entire home in a manner consistent with the overall stylistic intent of the design. All materials are to be used in such a manner as to appear structurally correct.Stone walls and columns, timber post, beams and trusses and other structural elements must appear to be self-supporting and/or appropriately massive for their task. Refer to the Town of Westlake's Building Quality Manual. 17 Res 19-23 Subjective Requirements Material changes must occur at logical transition points.Vertical transitions must occur at inside corners and horizontal transitions must occur at appropriate heights with dividing ledge stone or trim materials.Some appropriate locations for horizontal transitions include second floor finish floor elevations and window sills and foundations. Connection details must be appropriately authentic. Materials shall express appropriate weight and dimension. l ,. A : - °Ae 6 THOUGHTFUL VERTICAL AND HORIZONTAL TRANSITIONS OF MATERIALS Foundations Intent Foundations and finish grading in The Knolls must be designed such that the home appears to be integrated into the earth. Quantitative/Specific Requirements All property owners are required to provide a geotechnical report from a licensed provider on which their foundation design is to be based. 18 Res 19-23 Foundation walls that are above grade by more than 6 inches must be clad with stone or other suitable finish material. Faux stone is prohibited. Foundation vents must either be concealed in some fashion or be made to be decorative. Plastic or galvanized metal vents are prohibited. Subjective Requirements On sloping sites, foundations must be stepped with the contours to avoid high retaining walls.Where raised slabs are employed,a dropped brick ledge is required.See sketch. . r 7 RETAINING WALLS INTEGRAL TO THE HOUSE MUST BE CLAD IN THE HOUSE MATERIAL 8 AN EXAMPLE OF STEPPED FOUNDATION 19 Res 19-23 Exterior Siding Materials Intent The predominant materials to be used for exterior walls at The Knolls are to be stucco, brick and stone. Wood may be used as an accent material but should be limited.Wood is to be finished to take advantage of its natural grain. Wood and stone colors and patterns must complement the surrounding natural environment. �* 9 WOOD SIDING CLADDING THE SECOND FLOOR OF THIS HOME COMPLEMENTS THE LIMESTONE General Quantitative/Specific Requirements Homes at The Knolls may not use more than three major exterior wall materials. Wood Siding Materials Wood must be stained,not painted, such that the natural grain shows through. Synthetic wood products are permitted provided that they are of sufficient quality and design to appear real. Some approved manufactures include James Hardie, Geolam, and Cali Bamboo. Builders are required to provide samples for alternative materials. Owners will be required to submit proposed materials including required trim and accessory components at final design review. Log homes are not permitted in The Knolls.Plastic and PVC trim is prohibited. 20 Res 19-23 �t Lr 10 AN EXAMPLE OF A STONE HOUSE COMPLEMENTED WITH BRICK Stone In general, cladding whole masses is preferred over wainscoting. When used, stone wainscoting must be either discontinuous or varied in height. Stone wainscoting must have a ledge stone cap or coping. Openings for windows must include sufficiently massive lintels to appear structural. As an alternative,arched openings are permissible provided that the stone work is applied to appear structurally correct. Owners will be required to submit proposed materials including required trim and accessory components at final design review. Stone is subject to the following requirements: • No faux stone • Stone must appear to be indigenous and work within the overall color palette. River rock is prohibited. • Stone must appear to start below grade and be designed to appear structural and not a thin veneer. • Stone must also appear to be load-bearing. The longest dimension should predominately run horizontally. • Although thin veneer stone applications are not prohibited, they are required to be detailed such as to appear at least full bed depth. 21 Res 19-23 11 STONE SHOULD BE LAID TO APPEAR LOAD BEARING Stucco Portland cement stucco is allowed in the Knolls. EFIS or other comparable imitation products are not allowed.Owners will be required to submit proposed materials including required trim and accessory components at final design review. 22 Res 19-23 1 1 12 ANEXAMPLE OF PORTLAND CEMENT STUCCO Metal Siding Non-reflective metal materials are permissible as an exterior siding material but is limited to coverage of no more than 20% of the total area of the exterior walls. Some approved materials include paint grip,copper,and zinc. 23 Res 19-23 r 1 v. 13 ANEXAMPLE OF WEATHERED COPPER SIDING Prohibited Materials The following materials are prohibited for use as siding: • Plastics or Vinyls • Plywood,T-111,OSB or other engineered wood sheet goods • Composite shingles • Masonite 24 Res 19-23 Roof Materials Intent Roofing materials are to be non-reflective, textured and a variegated dark color that is compatible with the surrounding natural environment. Their use should also be consistent with the practical requirements of the local environment.For example,shading large wall openings. Quantitative/Specific Requirements Approved roofing materials include: • All wood shingles and shakes(provided they are fire resistant) • Slate and high quality faux slate tiles(DaVinci Roofscapes tile or equal) • Flat and barrel clay tile • Concrete tile(Monier Life tile or equal) • Non-reflective standing seam metal(paint grip,copper,and zinc) • Prefinished metal such as"Galvalume" • Materials suitable for flat roofs such as TPO so long as they are not visible to a street. Prohibited roofing materials: • All reflective metals including galvanized products • Plastic shingles or tiles • Metal panels designed to appear as other materials • Composition shingles The ACC is,however,instructed to keep an open mind to advances in technology that may make some simulated materials sufficiently genuine in appearance. Owners will be required to submit proposed materials including required trim and accessory components at final design review. Flues, vents and other penetrations through the roof plane must be painted to match the roof if not enclosed in a concealing structure. 25 Res 19-23 Roof Colors Approved colors include: • Earth and other muted forest tones • Dark greens • Variegated blacks • Grey,blue and green slate colors • Copper(oxidized) • Bronze • Oxidized metals • Prefinished metal such as"Galvalume" l� 14 THIS HOME COMBINES PAINT GRIP AND SLATE ON ITS ROOF Gutters and Downspouts Intent Gutters and downspouts are to be integrated into the overall design of the home in form, location and color.All downspouts shall occur at building corners unless the locations are part of a unique design intent. 26 Res 19-23 Quantitative/Specific Requirements Plastic or other non-metal gutters and downspouts are prohibited. In locations where gutters are not used, the landscaping below the drip line must be reinforced with some form of decorative gravel or other means of preventing erosion.If a downspout drains to open ground,the receiving area must be similarly reinforced.Water should not be discharged onto adjacent lots. Subjective Requirements Paint grip, copper, and zinc are encouraged as materials. Prefinished metal such as "Galvalume"is also allowed.Painted gutters and downspouts are discouraged. Trim, Details, Texture and Ornamentation Intent A richness of architectural detailing is required in The Knolls. The selection of details has a major impact on the apparent style of the design.Details must be applied consistently on all elevations and in concert with the stylistic intent of the design.Refer Town of Westlake Building Quality Manual. Details must be substantial in scale relative to the structure and to their inherent structural properties.In all cases,elements that are structural or clad structural components must be scaled and detailed such that they appear functional and structurally appropriate. Quantitative/Specific Requirements Some preferred details include: • Exposed timber or steel,beams and trusses • Corbels,brackets and kickers • Exposed rafter tails • Lintels or headers over opening in masonry walls (limestone, board-formed concrete) • Architectural attic vents • Flat roofs should be hidden behind parapets or provided with integral box gutters to provide seamless transitions with fasciae • Highly crafted closure details 27 Res 19-23 s, Y+ 94tHiE '9151111 �i - � Subjective Requirements The ACC has wide latitude to ensure that an appropriate level of detail and ornamentation is included in proposed designs. The ACC must be the arbiter that determines the right balance between the poles of austerity and excess. The ACC will also determine whether or not an element appears to be structurally appropriate in scale and detailing for its apparent loads. Porches / Balconies/ Outdoor Spaces Intent Porches, balconies and other forms of outdoor spaces that are an extension of the architecture of the home are encouraged.They must be designed to appear complementary and in appropriate proportion to the form to which they are attached or otherwise relate. F; _ !3 q yyJ i 15 EXAMPLE OF APPR OPRIA TEL Y SCALED TIMBER STRUCTURE 29 Res 19-23 f 16 THIS PORCHEXTENDS THE LIVING SPACE TO THE OUTDOORS Quantitative/Specific Requirements The underside of balconies where visible must be finished comparably to eaves and overhangs of roofs.Minimum depth for porches shall be 6'-0". Porches,when low to the ground,must be designed to screen the view below the porch. Wood, plastic or metal lattice is not permitted; similar skirting deemed not to be sufficiently substantial by the ACC is prohibited. Subjective Requirements Structural elements such as columns, braces and kickers must be designed to appear appropriately massive to carry their apparent load,even when non-structural. If constructed of wood, the stain colors must be equal to or complementary to the trim colors on the home. Similarly,stone used on porches must be consistent with the stone on the home. Exterior Light Fixtures Intent Exterior Light fixtures,both attached to the home and installed elsewhere on the site must be limited in their impact in order to preserve the night time dark sky by minimizing the 30 Res 19-23 visibility of the lamp or light source. They are to use low intensity, indirect light sources to the extent required for safety and subtle accenting of the architecture and landscape. The quality and style of the fixtures must be in keeping with the architecture of the home. Exterior lighting shall comply with the Town of Westlake's Dark Sky Ordinance. Quantitative/Specific Requirements All exterior light fixtures must be shielded such that no direct light is allowed to exit the light fixture horizontally. Light from one property should not be allowed to spill onto an adjacent property.This includes security lighting operated by a motion sensor. Pole-mounted lights shall not be more than 8 feet tall.Lights mounted on masonry plinths and bollards are encouraged. Up-lighting of houses and trees is prohibited. Polished brass fixtures are prohibited.Wrought iron,bronze, copper,tarnished brass and other non-reflective metals are encouraged. R m 17 TREE LIGHTS AND PATH LIGHTS POINT DOWN SO AS NOT TO BLEED ONTO ADJACENT PROPERTIES Subjective Requirements The ACC will review exterior light fixtures with a high amount of scrutiny to ensure that their quality and design is commiserate with the overall requirements of these Guidelines and the home to which they are to be installed. Their scale must be appropriate to their use; oversized fixtures as determined by the ACC will be prohibited. Fixtures that are or appear to be hand crafted are encouraged. 31 Res 19-23 Miscellaneous Requirements Intent Trash storage, satellite dishes,meters and utility hook-ups and other such equipment are to be hidden from street view. Further, trash storage, and utilities as mentioned above, should be screened from adjacent properties if located in a side yard. Quantitative/Specific Requirements Meters and utility hook-ups can be screened from view either by their location on the home or with landscape walls or similar structures. They must be shown on the elevations of proposed designs. Trash storage enclosures with doors easily accessible to the trash removal providers are required for each home at The Knolls.Each enclosure must be sized to contain at least one of the 20-gallon trash bins as required by the outside provider.Trash enclosures can either be attached to the home or free-standing.For security reasons,the trash storage enclosure must not be accessible from inside the home. Satellite dishes may not exceed 2 feet in diameter and must be approved specifically by the ACC prior to their installation. The ACC will work with the Owner to find a practical location that creates the least impact on neighbors and passersby. Potential satellite dish locations must be identified in all design submissions and then pre-wired during construction regardless of the owner's intent to have or not have satellite service. Solar Applications Intent Equipment used to capture the energy of the sun—such as photovoltaic panels or shingles and hot water collectors must be both integrated into the architecture and largely hidden from primary view sheds.Windmills are prohibited. Subjective Requirements The ACC is instructed to support Owners and Architects who wish to integrate such panels and other equipment into their homes with as much flexibility as possible while maintaining its main requirement of mitigating any potential negative aesthetic impacts. 32 Res 19-23 THIS NOT THIS 33 Res 19-23 CHAPTER TWO SITE & LANDSCAPE DESIGN Overall Intent of the Site and Landscape Guidelines Design for the Site and Landscape at The Knolls at Solana must achieve the following: • Preserve, protect and enhance the existing forest and natural environment of The Knolls. • Situate homes such that they preserve the integrity of the surrounding forested landscape by maintaining or replicating and restoring a natural buffer between the house and street,neighboring Homesites and Common Areas. • Limit tree removal to what is necessary to accommodate the home and critical views, improve forest health across the entire Homesite and selectively open up views while ensuring that off-site views are protected. Employ an arborist to assess tree health for trees exposed to construction prior to construction and protect trees as recommended during construction. • Incorporate unique design solutions that are responsive and subordinate to the specific Homesite's topography. • Site buildings to maintain a low, subordinate profile against the back drop of the surrounding forests and generally below the tree canopy. • Design landscape that blends new landscaping with the natural environment by using native materials and providing a transition from manicured areas to areas that appear to be natural. • Use natural and indigenous building materials for landscape structures,site walls and outdoor areas including wood and stone building materials.The project stone should be used for walls visible to the street.See attachment 3 for Approved Plant List. Location of the Home on the Homesite Homes in The Knolls must be situated on their Homesites such they achieve the following objectives: • Minimize grading to non-built areas of the lot. • Maximize privacy. • Protect,enhance and maintain the natural forest throughout the community. Preserve the dominance of the natural setting by situating buildings such that they blend into their surroundings.Foundations should be integrated into the contours of the site. 34 Res 19-23 Homesite Diagram and Building Envelopes A Homesite Diagram has been prepared for each Homesite. This diagram establishes the boundaries of the Building Envelope and Natural Area within each Homesite. Homesite Diagrams are available from the ACC administrator and are provided on or before the time of closing on the property. r-. t I.A GAFIr— AREA- 0 - NArUM&L IZEP+- ..... � 35 Res 19-23 QO'kFyR CARD o' F 'CttQ Id . o �� SfD.FRET A6TBAC�. 3� _ � _� PPR71+4L CtEIXIC�P FRol.lt�1B�C-k'ZD' 47= YA R I f18LE W 117I}}E��EMic NT' StftEEf' R.O.W. 80' Sol R"R'YAY+.D lo' 6o'Ctar�� [b' _ IS r � � yn • S7D FRONT SeM,f 30` _�— AF2TIA R i7 F1�DraT SE--M -e 2a' 61 � VARIABLE WIDl" lt�.P�MEAIT" •1 Sf12F�T R.o•u/• 36 Res 19-23 Oat 20' RcP.R'l'P�Rb .STs4.,. le 46 4 N (� o / 5TR FROWr 9Era4cK- 2o' �j� � � PAR71At..�tEU1c.�D Ff�T'set'�Ac.1c 1p' VARIAM WlCfiti EoF�ME�.tt •` �3IRE�7'R,oW, P I I I � 1 Intent The Building Envelope The Building Envelope is the area in which the home and potential ancillary structures can be constructed as well as other vertical improvements as well as terraces,landscape walls, ornamental streams and pools,swimming pools or spas and auto-courts.It is also the area in which landscaping such as gardens and lawns may be created and offers the least restrictions on what types of vegetation can be installed. 37 Res 19-23 The Landscape Area The Landscape Area of the Homesite is the area typically adjacent to the perimeter of the Building Envelope that is designed to allow more cultivated landscaping such as lawns and planting beds also horizontal improvements, patio and motor courts areas; terraces and retaining walls. The Natural Area The Natural Area of the Homesite is the area at the rear of each homesite and outside of the Building Envelope. The Natural Area is to remain wooded. Any canopy tree removal shall be only by a tree removal permit issued by the town of Westlake. Previously disturbed natural areas are encouraged to be restored and/or recreated post-construction. No construction of any kind may take place within the Natural Area. Understory vines, shrubs, undergrowth, ground cover may be removed. Existing grades should not be altered where native trees are preserved.The natural wooded landscape may be enhanced through either the addition of approved, indigenous species that are compatible with the existing vegetation or tree thinning for the sake of forest health and fire safety.A rear yard fence of steel picket or pipe rail and wire mesh may be erected along rear property line in the natural area.Refer to fences. Combining Homesites Prior to combining two or more Homesites,approval is to be obtained from the Declarant during the Development Period or from the ACC thereafter.When combining two or more Homesites, the ACC will designate new Building and Landscape Envelopes and a new Maximum Enclosed Area. The ACC shall respect the Town of Westlake's zoning regulations. Tree and Shrub Thinning and Removal in Natural Areas Intent Existing native tree species in the Natural Area of Homesites in The Knolls must be maintained and enhanced in order to create visual privacy between the home and neighboring properties and open spaces. Owners are required to maintain the wooded areas on their Homesites in a manner that will maximize tree health and enhance the appearance of the natural environment. Within the Landscape Area, restoration or replication of native shrubs and trees is encouraged to provide privacy between adjacent homesites. Tree Removal in the Building Envelope and Landscape Area Intent The restrictions limiting predevelopment clearing are consistent within both the Building Envelope and the Landscape Area. Within these envelopes, trees and shrubs can be removed to accommodate the foundation of the new home,utilities,required excavations, and its ancillary structures and improvements.Outside of the Building Envelope,existing 38 Res 19-23 high-quality trees are to be incorporated into the landscape plan as best possible. Understory vines and shrubs may be removed in the Building Envelope and side yards and front yard prior to preparing a limited tree survey and prior to tree removal for purposes of access,surveying and marketing of the homesite. Owners may clear the entirety of the envelopes but are encouraged to leave a significant minority in place to accomplish two goals.First,the envelopes are composed with straight lines but trees may not be removed such that a wall or corridor is created;the edge must be softened with undulations in the clearing limits.Second,the forest landscape should be integrated into the landscape design around the home. Quantitative/Specific Requirements The removal of any tree that has a diameter greater than 9 inches,as measured 4 feet above grade,or any shrub measuring greater than 5 feet in height,must be approved by the ACC and Town of Westlake. Trees must be individually permitted for removal with the town if it cannot be preserved. Lot owners are encouraged to design the home and garden around trees 9" or greater in diameter if possible and practical. Failure to obtain ACC approval for tree/shrub removal may result in a fine up to $2,500 per tree/shrub and/or additional tree/shrub mitigation as specified by the ACC. The ACC reserves the right to periodically adjust fines for unapproved tree/shrub removal. 100%of side yards and 50%of the front yard may be cleared. Subjective Requirements The ACC is asked to work with Owners to encourage the preservation of particularly large and high-quality trees and may require an adjustment in the location of an improvement to achieve this goal, provided the requirement does not prevent the reasonable use and enjoyment of the Homesite. Owners and architects are required to make a reasonable attempt to preserve such trees and to work with the ACC towards this important goal.The consultation of an arborist is highly recommended. Pre-Construction Site Thinning and Clean-up Intent In order to allow owners to perform tree and shrub thinning and maintenance on their Homesites in advance of ACC approval of architectural and landscape plans for the Homesite,the ACC has created the following policy. 39 Res 19-23 ............. y �0V/4D/AV pA0 i n car'wions` �/z Lvr wrnrk TR�e sursl��Y �E4'�(/P�o � �x�napr Quantitative/Specific Requirements Owners and/or their contractors must present a plan to the ACC that includes the following: • A limited tree survey. (Preliminary clearing of understory plants may be done if deemed necessary for access to surveyors. This will be determined on a case by case basis) • A plan showing the area in which the proposed thinning and maintenance work is to be performed including the access route from the street. • At least one photograph of both the front and back of the Homesite sufficient to show existing conditions for comparison purposes when the work is complete. Subsequent to receiving written approval from the ACC, work may proceed within the approved work areas with the following restrictions: • Removal of trees less than 4"in diameter as measured at 4'above grade. • Removal of shrubs less than 5'in height. 40 Res 19-23 • Removed trees and shrubs must be cut at ground level or lower and be removed from the site or chipped on site and spread evenly within the work area. • Trees may have lower level limbs removed up to 1/3 the total height of the tree from the base of the trunk. Such work is limited to the Building Envelope and the Landscape Area and expressly excludes the Natural Area portion of the Homesite. When complete, the work area must be returned to a state that resembles the pre-existing and natural condition. Any ruts or other damage to the forest floor must be repaired. The ACC reserves the right to require that the Owner re-vegetate the work area. The Owner and their contractor are subject to all other Construction Guidelines including the section on Damage Repair and Restoration. Unless otherwise specified by the ACC, such thinning and clean-up work shall not exceed 30 days. If the Owner is interested in removing trees or shrubs in excess of the previously described maximum sizes,Owner may seek approval on a case by case basis from the ACC.For such approvals, Owner must submit a site plan indicating the location of the item(s) to be removed and a photograph(s)of the proposed item(s).If helpful,a description of why the item should be removed is also welcomed. Driveways and Address Markers Intent • Minimize visibility of paved areas from off-site through vegetative screening or low wall. • Blend driveways into the terrain by following the natural grade. • Utilize distinctive paving materials at motor-courts and parking areas. • Minimize width of driveway at connection with street. • Prevent cars from overhanging onto adjacent lots. Quantitative/Specific Requirements Appropriate paving materials for driveways and auto courts include: • Colored,stamped,exposed aggregate,broom finished and/or patterned concrete • Pre-cast concrete pavers that are chosen to blend into the natural environment or to complement adjacent paving types in both color and pattern. • Native stone • Decomposed granite or decorative gravel with a concrete apron of at least 20 feet in length starting at the curb.Only use if grades allow. • Turf block or similar structured turf in low volume areas. • Colored gravels that complement the natural environment such as iron ore or pea gravel.Only use if grades allow. 41 Res 19-23 • Driveway gradients are not to exceed 12%. • Provide wheel stops or curbs 18"from side lot line. Inappropriate paving materials include: • Untextured,uncolored concrete • Asphalt(unless banded or bordered with concrete) • White,angular gravel • Faux stone Driveways are encouraged to narrow at the driveway apron. Parking and turn- around areas must be screened from off-site views by supplementary plantings as approved by the ACC as part of the Landscape Plan. A maximum of one driveway entry/cut will be permitted for each Homesite. Owners of neighboring Homesites are encouraged to consider a shared driveway solution. Neutra Modern House Numbers(6"tall)in any finish shall be used for address markers. 35 82 42 Res 19-23 18 THIS MOTOR COURT IS SCREENED B Y A LOW WALL Subjective Requirements Driveway alignments, parking and garage layouts are to minimize visibility of garage doors,driveways and parking from the street and adjoining Homesites. Plantings of trees,shrubs and other vegetation are to be incorporated to screen driveways, garages and motor-courts. 1f i qM 43 Res 19-23 Grading Intent • Blend new Improvements into the site. • Preserve natural drainage patterns or replicate while redirecting runoff to streets and common areas. • Retain the character of the site's natural topography and existing vegetation. Grading and drainage improvements are to focus on minimizing impacts to the site and landscape,reducing water quality impacts,minimizing removal of the existing forest,and promoting the use of natural drainage systems within the Homesite. Drawings submitted to the ACC must include grading, drainage, utility locations, re- vegetation and sedimentation and erosion control plans for all new construction.Grading shall respect public and private drainage systems as shown in the community's grading plans. Quantitative/Specific Requirements The following standards are to be integrated into all grading plans for The Knolls: • Where feasible,building foundations and main floors are to step with the existing topography as it rises and falls to create split floor levels rather than one flat building pad. While it is required that building masses follow natural site contours, nothing in these guidelines shall prohibit a single floor level provided that the building height,massing and grading guidelines are met. • All cuts, fills and retaining walls are to create smooth transitions at the top and bottom of slopes that appear as extensions of the natural landform. Grading designs are to protect and retain as many existing trees as possible. • Slopes are not to exceed 2:1 unless it can be demonstrated that a steeper slope will not erode.Natural appearing slopes are to be used instead of structures wherever feasible. • Cut and fill slopes are to be re-vegetated with plantings from the approved list in Attachment 3 and appropriate to the site to blend them into the surrounding environment. Revegetation is to be completed as soon as possible and erosion control measures implemented upon completion of grading. • Fill may not be used to significantly raise the first floor elevation. • Elevation changes are preferred to be accomplished with the home's foundation in lieu of retaining walls but both may be used in combination. Retaining Walls Intent Minimize the use and height of retaining walls. Blend retaining walls with the natural topography.A series of shorter stacked walls is preferable over one tall wall. 44 Res 19-23 Construct retaining walls out of stone that is either locally sourced or appears to be indigenous. Board-formed concrete and cor-ten steel are also permitted where not visible to a street or common area. 4, 77•..�. -- 19 ANEXAMPLE OF COR-TENRETAINING WALLS WITHINA COURTYARD The tops of walls are to follow the natural contours as closely as possible.Ends of walls are not to end abruptly, but are to create natural-looking transitions with existing landforms and vegetation and die into existing contours. Quantitative/Specific Requirements Where grade changes equal or exceed 4 feet,stepped-back or terraced wall structures with ample planting terraces (4-foot minimum width) are to be used. Higher walls may be considered only if they are not visible from off-site, and if doing so significantly reduces overall impacts to the site and/or adjacent land and must be signed by an engineer. Retaining walls that are four feet in height or greater shall be designed by a licensed engineer.Retaining walls that are integral to the house or in private outdoor areas such as the back yard and not visible to the street may be constructed of alternate stone or masonry that complements the house materials.Retaining walls should step down unless providing for a programmatic function such as pools, patios, dog runs or dog areas. In these applications,retaining walls should be expressed as extensions of the house. • Retaining walls visible from any street or common area shall be constructed of the designated project stone. • Walls as extensions of the house must be of the same material as the house. • Walls in patio areas, front yards or along side yards shall be constructed or clad with stone to appear natural and indigenous. 45 Res 19-23 • Walls may incorporate stairs or ramps. • Shrubs and vines are to be planted at the base and top of walls to blend them with the site. Specific Requirements in Landscape Areas Retaining walls may only be constructed in the Landscape Area to accommodate a driveway,motor court or footpath. Specific Requirements in Natural Areas Retaining walls may only be constructed at the perimeter of the Natural area to preserve it from altered grades in the Landscape Area or Building Envelope. See Attachment Two for rules regarding shared retaining walls and fences. Drainage Intent • Maintain natural drainage patterns. • Encourage on-site percolation. • Minimize any potential for erosion. • Direct runoff and respect public and private drainage easements, street, conveyance systems,as shown in the community grading plans. Quantitative/Specific Requirements Drainage is to be designed by a qualified Engineer or Landscape Architect. Natural drainage courses and patterns are to be protected and maintained,wherever feasible. Impervious surfaces are to be minimized to the extent feasible to encourage water percolation into the ground. The use of more pervious(water permeable) materials, such as approved gravels or open-celled pavers is encouraged. Concentrated flows from impervious surfaces,roofs,and regrading must be collected and discharged to a street or common area. It may also be collected in an on-site rainwater collection system. Materials and sizes for all culverts,headwalls, visible drainage structures and driveways are to be approved by the Architectural Control Committee to ensure structures appear natural and "disappear" into the landscape. Stone-reinforced dry creek beds designed to carry water without causing erosion are encouraged in lieu or in combination with underground drainage structures. Drainage across or under driveways is to be incorporated into driveway and apron design and any culverts are be concealed with stone headwalls or similar treatments. 46 Res 19-23 Drainage design is to minimize any potential for erosion and consequent downstream water quality impacts. Parking Intent • Minimize visibility of parking areas. • Use decorative paving or aggregates with colors that blend with local soils to make parking areas aesthetically desirable. Quantitative/Specific Requirements All 70'wide Homesites are to provide a minimum of two enclosed parking spaces.All 80' wide Homesites are to provide a minimum of three enclosed parking spaces. • Guest parking spaces,if provided,are to be screened by a combination of plantings and/or low walls(4-foot maximum). • Large capacity trucks, recreational vehicles, motor homes, commercial vehicles, large trailers and similar vehicles that cannot fit through a standard single bay garage door (maximum size 9 feet wide by 9 feet tall) may not be kept at any Homesite except for loading and unloading as may be allowed by Association policies. Garages are to incorporate planting designs that screen garage doors from the street or common areas. Exterior Hardscape Design: Outdoor Stairs, Paths, Courtyards,Terraces Intent • Create outdoor"rooms"as extensions of indoor rooms. • Design outdoor improvements to respond to the Homesite's topography and landscape characteristics. 47 Res 19-23 to r 20 THIS ENTRY COURTYARD NOT ONLY PROVIDES PRIVACYB UT EXTENDS THE LIVING SPACE Quantitative/Specific Requirements Appropriate paving materials for exterior hardscape areas include: • Native stone • Colored,stamped,exposed aggregate and/or patterned concrete • Brick or pre-cast concrete pavers that are chosen to bend into the natural environment or to complement adjacent paving types in both color and pattern. • Decomposed granite or gravel Inappropriate paving materials for exterior hardscape areas include: • Clay tile • Non-colored,non-patterned concrete • Asphalt • Asphaltic concrete All paths, outdoor stairs and terraces are to be located within the Building or Landscape Envelopes with the exception of foot paths that may be located in the Natural Area. Specific Requirement in the Natural Area Foot paths may enter the Natural Area of the lot provided they follow natural contours and utilize pervious materials that blend in color with the forest floor as appropriate. Footpaths through the Natural Area are restricted to a maximum width of 5 feet. 48 Res 19-23 Subjective Requirements Designs are to minimize the use of several different types of paving materials in order to produce an understated, unified design. Materials are to augment and complement architectural materials. The spatial organization of the Residence and that of outdoor rooms and terraces is to be designed as a series of spaces that relate to each other and to existing site and topographic conditions. Outdoor spaces are to transition gradually from the more formal, geometric lines associated with buildings to the more organic forms of nature. Terraces are to respond to existing trees and land forms, which may be used to create a gradual transition from the built to the natural environment. Plant materials, walls, architectural devices and/or landscape structures are to be incorporated into the design of outdoor spaces. Design of a terrace or outdoor room around a focal point such as a specimen tree, shrub, or natural looking water feature is encouraged. Impervious surface areas are to be minimized to the extent possible and kept close to the house. Moving away from the house, there is to be a gradual transition to pervious or "softer"surfaces such as gravel mulch,decomposed granite and/or hardwood mulch. Screen Walls, Fences and Gates Intent Construct high quality walls and fences out of stone,metal,or concrete in a design that is complementary to the architecture of the home. 49 Res 19-23 Fences,walls and gates are to relate to the residence and site topography.Fencing materials are restricted to steel picket or metal pipe rail and wire mesh in flat black color. Wood fences are prohibited. Quantitative/Specific Requirements All fencing is limited to decorative steel picket or wire mesh. Each post shall have a decorative"cap." Living plant materials for screening is encouraged. 7- T,Waal.I 21 AN EXAMPLE OF WIRE MESH FENCE Transitions in fence and/or wall heights required by topography are to be gradually stepped. Solid screen walls are only allowed as extensions of the house and accessory structures. These extensions shall be restricted to the building envelope and not be located on any lot line. 50 Res 19-23 22 THIS SCREEN WALL EXTENDS FROM THE BUILDING Appropriate wall types include: • Cast in place concrete • Low stone walls not to exceed 4 feet in height • Wing wall extensions that match building materials • Stucco on CMU Appropriate fence types include: • Metal(maximum 6'height to horizontal top rail with 3/4"minimum picket painted black or near-black.Picket spacing to be less than 6" on center.) • Hedges used to disguise lower cost fences,particularly fences required for pets or around pools. Inappropriate fencing materials/types include: • Exposed Concrete block • Chain link • Wood fences of any type • Opaque fences of any type Dog runs are permitted within The Knolls,provided they are constructed of materials that are complementary to the principal building walls,site walls and/or landscape structures. 51 Res 19-23 Dog Runs shall be attached to residences and not free standing and are limited to an area of 200 square feet. Dog runs shall be screened from the street and adjacent lots and must be contained within the Building Envelope. Any side yard fence may be installed by the first homeowner and the subsequent homeowner shall share in cost by reimbursing the first homeowner by 50%of the portion on the common lot line. Retaining walls on the front of a Lot shall be constructed of the same stone used as the project stone which is Leuders Charcoal chopped typically as 6" height laid in horizontal coursing of generally 18" lengths. The retaining wall material shall blend with the improvements constructed by the Declarant. Stone for interior Lot line walls shall be Milsap charcoal stone,randomly coursed ashlar pattern with natural grey grout. 23 ANEXAMPLE OF GRANBURY CHOPPED STONE Landscape Structures, Site Furnishings, Fire Pits and Outdoor Art Intent In general,the same Guidelines that apply to architecture apply to the design of landscape structures. • Design landscape structures that appear as extensions and/or additional building components of the main Residence. • Incorporate landscape structures such as trellises to help mitigate the climate and create shade,shadow and texture. • Screen fire pits,outdoor art and other ornamentation from off-site views. Requirements in the Building Envelope Site furnishings, fire pits, outdoor art and landscape structures, such as arbors, gazebos, pavilions, porte cocheres, greenhouses and/or decks, are permitted within the Building Envelope. The height,color,materials and style of outdoor structures are to be the same or similar to that of the Residence. Fire pits must be permanent and be designed to be complementary to the architecture and landscape architecture of the overall property. Any masonry used is subject to the same requirements for the use of stone as described in the preceding chapter. 52 Res 19-23 Landscape Area Requirements Pathways, fire pits, freestanding site furnishings, outdoor art approved by the ACC, terraces and patios that are less than 4 feet (including perimeter walls) in height from existing or final grade whichever is lower - are permitted in the Landscape Area. Wood decks supported by columns are not permitted in the Landscape Area. Basketball Goals and Sporting Equipment Intent 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. 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. Quantitative/Specific Requirements Permanent goals must meet the following criteria: • Poles must be permanently mounted into the ground to the side of the driveway in a full upright position 25'back from the curb. • Poles,backboard and net must be maintained in good condition at all times. • Backboard must be transparent. • Poles must be painted flat black or near black. • Poles may not be installed in front of the garage or facing into the street. Portable goals must meet the following criteria: • The goal must be placed to the side of the driveway and maintained at all times in a full upright position 25'back from the curb. • 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. 53 Res 19-23 Playscapes and Sport Courts Intent 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. Quantitative/Specific Requirements 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 be placed no closer than five feet(5)to any property line. • 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. Water Features, Spas and Pools Intent • Locate pools,spas(hot tubs)and plunge pools so that their visibility is minimized from areas outside the Homesite. • Design pools and water features that augment outdoor spaces and extend the architectural style of the Residence. 54 Res 19-23 f:y:r ,b 24 A WATER FEATURE INA POCKET COURTYARD Quantitative/Specific Requirements Requirements in the Building Envelope and Landscape Area Pools, spas and other water features are to be located within the Building Envelope or Landscape Area, visually connected to the Residence and designed as an integral part of the house's exterior design. Water features such as small ponds,waterfalls and streams are to appear natural and not contrived. They must be made out of materials that appear indigenous to the site and be landscaped such that they appear to have occurred naturally. Swimming pools may only be located within the building envelope.Pool safety measures are to be taken in accordance with local governmental regulations.No swimming pool,spa and hot tub shall be located in the front or side yard on any Lot unless enclosed in a courtyard. Pool and spa covers are to be dark and muted in color to recede from view.Pools and spas are to be set down into the ground, terraces and/or decks. Above grade pools or spas are not permitted. Spa and water feature equipment enclosures may be in the side yard and are to appear as extensions of the home and/or located in underground vaults to contain noise.Solid noise absorbing covers for equipment may be required after installation if it is discovered that the equipment is audible from adjacent properties. The drains serving a swimming pool,spa and hot tub must be connected to street or private drainage systems. 55 Res 19-23 Requirement in Natural Areas Spas and Pools are not permitted in Natural Areas. Planting Design Intent • Utilize new plantings to frame outdoor spaces,lessen the impact of new structures, screen use areas and preserve and extend the forest landscape. • Use plants that are adapted to the climate, are less invasive and require less water and maintenance. • Minimize the visibility of non-native plant materials, as viewed from off-site. • Preserve and enhance the existing forest areas in the Natural Areas and existing high quality and larger trees in the Building Envelope and Landscape Area. 56 Res 19-23 ate A. s a i P. 25 NATIVE PLANTING COMPLEMENTS THE ENTRY OF THIS HOME Quantitative/Specific Requirements Requirements for the Building and Landscape Envelopes Each Lot shall be landscaped, at a minimum, with the following number of hardwood shade trees in the 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 3.5" caliper. 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 57 Res 19-23 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. Notwithstanding the foregoing, a minimum of one, three and one half inch(3.5") caliper trees from the Approved Plant List must be planted on each Lot in addition to the Front Yard Requirement.If existing protected trees are preserved in the front yard of a Lot,they can be used to satisfy this requirement. Manicured or groomed yards and non-native plantings are to be restricted to spaces confined by buildings, walls and plantings or other well-defined edges so as to not be visible from the street.Moving away from the house,towards the Natural Area,non-native planting areas are to gradually transition to a native landscape so that a buffer of native vegetation surrounds the Residence. Non-native plant species may not extend outside of the Building or Landscape Envelopes. Plant materials are to use a mix of sizes and be spaced in natural,informal patterns.Plant species should be drifted (grouped to replicate natural occurring masses of same-kind plant communities). Shrubs, ground covers and vines are to be used to soften and reduce the perceived height of foundation walls. Tree and shrub plantings are to be of a sufficient quantity and size to effectively continue the native forest canopy and under-story. Trees and other vegetation are to be planted so that they define outdoor spaces, buffer views of buildings and frame views. Cut and fill slopes are to be re-vegetated with plantings appropriate to the site (see Attachment 3)to blend them into the surrounding environment. 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. Plant materials are to be grouped according to water consumption needs. Areas of irrigated landscape are not to exceed 40% of the combined area of the Building and Landscape Envelopes.Xeriscaping is encouraged. Requirements in the Natural Areas With the exception of trees and shrubs that can be cleared per the previous"Tree and Shrub Thinning and Removal"section,existing trees and major shrubs are to be preserved. Additional plant materials may be added in the Natural Areas provided that they are chosen from the approved plant materials for Natural Areas and that they enhance the appearance and future health of the existing landscaping. Disturbed native areas are to be restored to their previous condition or planted such that they appear to be natural as approved by the ACC. Native grasses and wild flowers may be planted in the Natural Area. Shrubs and ground cover are also encouraged. 58 Res 19-23 Areas under native trees to be covered in hardwood mulch or scattered native boulders to appear to be undisturbed. Irrigation Intent • Minimize the amount of landscape irrigation required through water sensitive landscape design. • Utilize automated irrigation systems that provide efficient water coverage and minimize water usage and runoff.Drip type systems are encouraged. Quantitative/Specific Requirements Incorporate bubbler/drip irrigation systems that provide deep root-zone irrigation of trees and shrubs. Trees are to be irrigated on a bubbler/drip system except where planted in irrigated lawns. Consult an arborist before introducing irrigation into the Natural Area of the Homesite. Note that introduction of irrigation lines may jeopardize existing trees. Trenching for irrigation lines is not to encroach within the drip line of existing trees unless required to maintain appropriate moisture content of soils around foundations. All permanent irrigation systems are to be below ground and fully automatic. Temporary irrigation systems are required at all revegetation areas. These systems are to be removed once plantings have been clearly established and after a minimum of one growing season.Black poly pipe is to be used for all temporary,above-ground irrigation systems. Group plant materials according to their water consumption needs. Mulch all new planting areas, including trees in lawn areas with a minimum of 3 inches to retain soil moisture,reduce erosion and provide for weed control. Exterior Lighting Intent • Preserve the nighttime dark sky by minimizing the amount of exterior lighting. • Utilize low intensity, indirect light sources to the extent required for safety and subtle visual effect. • Avoid unnecessary illumination of structures. Quantitative/Specific Requirements 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 59 Res 19-23 eliminate glare and source visibility. Exterior lighting shall comply with Town of Westlake's Dark Sky Ordinance. 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. Floodlights are prohibited. Exterior lighting in motor courts and over garage doors may/shall be motion detector activated and not installed higher than ten feet (10') above the grade of the driveway. All light sources must be fully shielded from view from adjacent property or right-of-ways. Decorative Light sources such as entry sconces must be shielded with frosted or translucent glass. Path lighting fixtures are to be a maximum height of 24 inches. With the exception of low-level driveway lights,all lighting must occur within the Building or Landscape Areas. Exterior lighting is to fall within the following wattage ranges: • Architectural lights mounted to buildings and that are fully recessed and downward facing are not to exceed 75 watts. • All other architectural lights are not to exceed 40 watts. • All landscape lights are not to exceed 20 watts. 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. 60 Res 19-23 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.BBQ grills may also be built into outdoor kitchens and the masonry and other materials shall match the materials used on the residence. 61 Res 19-23 CHAPTER THREE CONSTRUCTION GUIDELINES Overall Intent The following restrictions shall apply to all construction activities at The Knolls. Periodic inspections by a representative of the ACC or the Town of Westlake 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. Temporary security fencing around construction sites are optional for builders and owners but must be approved by the ACC. 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. or as regulated by the Town of Westlake if more restrictive. 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. 62 Res 19-23 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 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 and Builders shall be responsible for removing refuse and 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 The Knolls. 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.It should be installed on level ground,at the back of the lot unless it cannot be serviced and screened from view.A mock up construction wall shall be used to screen it if located in the front part of the lot. 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. 63 Res 19-23 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 10% for time and service expended. 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 and construction activity must be continuous. Additional extensions shall be determined by the ACC. 64 Res 19-23 CHAPTER FOUR DESIGN REVIEW PROCESS Overall Intent The design review process has been developed to insure that all new construction, alterations and renovations to existing buildings and major site Improvements conform to the guiding principles of The Knolls as outlined in the Design Guidelines. The design review process has been structured to eliminate excessive delays. The ACC suggests that property Owners begin the review process early to allow ample time to obtain required permits. When reviewing design and construction projects, the ACC will be looking for compliance with the principles outlined in this document. Project Types for Review New Construction Construction of any new, freestanding structure, whether as a Residence, Accessory Structure or landscape structure. Alterations,Additions or Rehabilitation of an Existing Structure Any new construction or rehabilitation to an existing building or landscape structure that alters the original massing, exterior finishes, window placement, roof design, exterior lighting,interior lighting visible from off-site and/or other significant design elements. Major site and/or landscape Improvements Any major Improvements or changes to Improvements, including, but not limited to, grading(for any excavation and/or fill involving more than 50 cubic yards of dirt),planting of non-native plants,tree removal,irrigation,swimming pools,driveways,fencing,paving and/or drainage,that alter an existing landscape. The ACC evaluates all development proposals on the basis of these Guidelines. Some of the Guidelines are written as broad standards and the interpretation of these standards is left up to the discretion of the ACC. Design Review Process Overview The Knoll's design review process,unless otherwise noted takes place in five steps. 1.Pre-Design Conference 2.Preliminary Design Review 3.Final Design Review 4. Construction Monitoring 5.Final Observations 65 Res 19-23 Any Improvement as described above will require and be preceded by the submission of plans and specifications describing the proposed Improvements and accompanied by an application fee. The Owner is to retain competent assistance from a licensed Architect, Arborist, Landscape Architect, Civil Engineer, Soils Engineer and a licensed and bonded Contractor (Consultants) as appropriate. The Owner and Consultant(s) are to carefully review the CC&R's and the Guidelines prior to commencing with the design review process. Having secured final design approval from the ACC, the Owner is to also meet all submittal and approval requirements of the water utility company and the Town of Westlake Planning and Building Departments to obtain any necessary building permits. In accordance with the CC&Rs,the Owner is to commence construction within one year of final design approval and is to diligently pursue completion of construction within a year of start. Final landscape installation is to be completed within 3 months of occupancy. Written approval from the ACC is required in order for any construction and/or landscaping to extend beyond the time limits noted above. Design Review Process-Minor Improvements Minor Improvements(including,but not limited to,construction of,or addition to,fences, walls, and/or enclosure structures),which are being completed independent of any major Improvements,do not need to proceed through all four steps of the general design review process. Minor Improvements may generally be submitted as part of a two-step review process: 1.Final Design Review 2.Final Observation Specific submission requirements and fees will be determined on a case-by-case basis as required by the nature of the Improvement.Owners and/or Consultants should contact the ACC to verify whether an Improvement qualifies for the abbreviated design review process. Upon receipt of permission to proceed with an abbreviated process, the Owner and/or Consultant will obtain a list of specific submission requirements from the ACC. Exclusions to ACC review would be rehabilitation or maintenance of an existing structure or landscaping elements. For example; replacement of dead plant material with same or similar pre-approved plants;mulching or routine tree trimming;repainting same colors or routine maintenance of structure. Actions and Approvals The ACC's actions on matters is to be by a majority vote of the ACC.Any action required to be taken by the ACC may be taken regardless of its ability to meet as a quorum, if a majority of the ACC is able to review the matter individually and come to a majority opinion. In such cases, the ACC shall make every effort to facilitate a discussion of the matter between all members through teleconferencing and/or other means of communication.The ACC will keep and maintain a record of all actions taken by it. 66 Res 19-23 If an Owner and/or Consultant disagrees with the ACC's written conclusions from a meeting, the Owner and/or Consultant should list specifically,in writing,which portions of the written record require clarification or correction. The ACC will then review the requested clarifications or corrections and either amend the record accordingly or let it stand,while noting the issues raised by the Owners and/or consultant(s).In the latter case, a subsequent meeting shall be held between the Owner and the ACC to resolve the difference in interpretation.However,the decision of the ACC will be final. After the Declarant has delegated to the Board the appointment of ACC members, any Owner may appeal ACC actions as described in the CC&Rs. The powers of the ACC relating to design review will be in addition to all design review requirements imposed by any other governing body with legal action. Approved Design Professionals In addition to the Declarant, The design team is to be comprised of the following Consultants: • Architect • Landscape Architect • Arborist • Additional professional services such as Civil Engineer, as required. Protocol for Approval of Architects Architects and Landscape Architects may work on a particular Homesite at The Knolls provided the conditions listed below are met. 1. Samples of previous residential work: • The Architect is to provide the ACC with three recent examples of residential designs that would generally meet the Design Guidelines. • The Architect is to provide the ACC with a list of residential clients, general contractors,structural and Civil Engineers(preferably three each)whom the ACC may contact as references. 2.Affidavit on compliance with regulations: • The Architect is to review The Knolls Design Guidelines. • The Architect is to review the zoning and building regulations for the town of Westlake. • The Architect is to provide the ACC with a signed copy of the Affidavit, available from the ACC office, certifying that he/she has reviewed and understood the documents referred to above and will comply with their provisions. 3.Approval by ACC: • The ACC shall have sole discretion to approve or disapprove any Architect submitted by an Owner. The ACC may disapprove an Architect if in the ACC's 67 Res 19-23 reasonable opinion, the Architect does not have the qualifications, training, license, experience or understanding of the design requirements to execute the design and construction of a residence at The Knolls. • The ACC shall have the sole and absolute discretion to include an Architect on its list of Invited Architects. The approval of an Architect to design a particular residence for a particular client does not require the ACC to approve him/her for any other Owner. Pre-Design Conference Prior to preparing any drawings for a proposed project, the Owner,Architect,Landscape Architect and any other key project team members are to meet with at least one member of the ACC or ACC Administrator to discuss the proposed project. During this meeting, the ACC will explain to the project team their responsibilities in implementing the Guidelines. This meeting will initiate the review and approval process and allow any questions regarding building requirements,interpretation of the Guidelines or the design review process to be resolved. The Owner may request that the meeting take place on the Homesite. Prior to the Pre-Design Conference, the Owner is to have engaged the services of an Architect and Landscape Architect and reviewed the Guidelines together with these Consultants.The Owner and Architect,at a minimum, are to attend this initial meeting. Additional information may be requested by the ACC as necessary to describe the project. The Pre-Design Conference may be scheduled by submitting the Pre-Design Conference Request Form at least ten(10)working days prior to the desired meeting date. Preliminary Design Review Within six months of the Pre-Design Conference, the Owner is to submit a written application and preliminary design documents for Preliminary Design Review.A checklist of the required preliminary design documents follows. The Preliminary Design Review will insure that: • All structures are sited to step with the topography,blend into the landscape and minimize grading and site impact. • The transition between the building and the surrounding environment accomplishes the intent and specifics of the Guidelines. • The roofs, massing, building materials, landscape materials and other site and architectural Improvements are consistent with any adjoining buildings and/or outdoor amenities and the Guidelines. Conceptual Submissions(optional) Owners and/or design representatives may choose to submit sketches and/or conceptual designs for ACC feedback prior to submitting for Preliminary Design Review. 68 Res 19-23 Preliminary Design Review Submission Materials The Applicant is to prepare and submit to the ACC for review and approval a Preliminary Design Review package, which adequately conveys (as appropriate): existing site conditions,building orientation and design,vehicular and pedestrian access,the proposed use of exterior materials and colors, and conceptual landscape design. The package shall include one full-size sets and two sets of 11" x 17" reductions of the drawings and/or materials listed below. The following list describes the information that will be required for new construction projects and for alteration, rehabilitation or additions to an existing structure. New construction projects are to submit all items listed below. Submissions for additions to existing buildings need only submit items 2 through 6. Submissions for the alteration and/or rehabilitation of an existing structure and/or major landscape Improvements need only submit items 5 and 6. 1. Preliminary Design Review Application Form - A completed application form. (ATTACHMENT ONE) 2.Property Survey-(1"=20'-0"minimum scale),a property survey prepared by a licensed surveyor indicating property boundaries; front, rear and side setbacks; the area of the property and Improvement Envelope; all easements of record; all existing 4" caliper and greater trees(as measured four(4)feet from the ground);and any significant drainages,as applicable. 3. Site Plan - (1" = 20'-0" minimum scale), showing existing topography and proposed grading and drainage (1' contour interval),building footprint with finished floor grades, driveway, parking area, drainage, fences, walls, patios, decks, pools and any other site amenities.Existing vegetation patterns,proposed clearance areas and trees to be removed and/or preserved are to be indicated. 4.Floor and Roof Plans-(1/8"=1'-0"minimum scale,unless otherwise specified),including all proposed uses, proposed walls, door and window locations, overall dimensions, finished floor elevations,and total square footage for all floors of all structures. 5. Schematic Elevations - (1/8" = 1'-0" minimum scale), including Building Heights, roof pitch,existing and finished grades and notation of exterior materials. In addition to black and white elevations,one unbound set is to be rendered in color and illustrate shadows. 6. Conceptual Landscape Plan - (1" = 20'-0" minimum scale), a conceptual plan showing irrigated areas, areas of planting, a preliminary plant list, extent of lawns, areas to be revegetated, water features, patios, decks, courtyards, schematic utility layout, service areas and any other significant design elements. 7. Study Model - (1/8" = 1' - 0" minimum scale), illustrating the relationship between proposed and existing building forms and topography, tree heights and prevailing site conditions. This need not be an expensively detailed model, but simply adequate to communicate basic three-dimensional concepts. A three-dimensional computer rendering(s)may be substituted to fulfill this requirement. 69 Res 19-23 The ACC reserves the right to amend the Preliminary Design Review submission requirements on a case-by-case basis as required by conditions and considerations particular to each Homesite and/or building(s). Staking and Tree Taping Upon submittal of the Preliminary Design Review Application for all Improvements, the Owner is to stake the corners of the proposed building,any proposed building additions, all other major Improvements and driveway centerlines. The Preliminary Design Review submission will not be considered complete until the building footprint and driveway are staked. Trees proposed for removal are to be marked in the field with red tape.Trees to be pruned and/or limbed are to have blue tape tied to the limb and/or area of trimming. Trees proposed for transplanting are to be taped with yellow ribbon and a stake placed in the proposed location of transplant. Preliminary Design Review Meeting The Owner and/or Consultant(s) may attend the meeting but are not required to be present.The ACC will review and comment on the application at the meeting, allow time for discussion with the Owner and/or Consultant(s),and subsequently provide the Owner with the conclusions of the meeting in writing. The comments of the ACC on the preliminary approval shall not be binding upon either the Owner or the ACC if approval is not initially granted. If there are significant changes required, the ACC may determine that a second review meeting may be necessary to review corrected and/or new materials prior to submitting for final plat. Corrected materials must be provided to the ACC a minimum of five (5) working days prior to the next regularly scheduled meeting. Final Design Review Within one year of Preliminary Design Review approval, the Owner is to initiate Final Design Review by submitting the written application and final design documents. All items are to be in compliance with the Guidelines prior to submitting for Final Design Review. Final Design Review Submission Materials The Applicant is to prepare and submit to the ACC for review and approval a Final Design Review package that adequately conveys compliance with the Guidelines. Final design documents are to generally conform to the approved Preliminary Design Review documents. All architectural plans are to be prepared by an Architect or approved Designer. The package is to include one full-size sets and two sets of 11" x 17" reductions of the following drawings and/or materials. Submissions for new construction and additions to existing buildings should submit all items listed below. Submissions for the alteration 70 Res 19-23 and/or rehabilitation of an existing structure and/or major landscape Improvements need only submit items 3 through 10 as applicable. 1. Final Design Review Application Form-A current application form,available from the ACC office,is to be completed and submitted. 2. Site Plan - (1" = 20'-0" minimum scale) showing existing topography and proposed grading and drainage (1' contour interval), building footprint (including accessory structures) with finished floor grades, building setbacks, easements, driveway, address marker, parking area, drainage, utilities, fences/walls, patios, decks, pools and any other site amenities. Existing vegetation patterns (including extent of tree canopies), proposed clearance areas and trees to be removed and/or preserved are to be indicated. 3. Grading, Drainage and Erosion Control Plans - (1" = 20'-0" minimum scale), showing existing and proposed grades, all drainage structures and/or other drainage design solutions, and cut and fill calculations. Plans are to also indicate the size of stockpiles, where they are to be located on the Construction Site and the length of time they will remain.The extent and location of sediment fencing and measures taken to control erosion during grading and construction are also to be indicated. 4. Foundation, Floor and Roof Plans - (1/8" = 1'-0" minimum scale, unless otherwise specified), for all buildings, including all proposed uses, room dimensions, total square footage for conditioned and unconditioned spaces,door and window locations and sizes, location and type of all exterior lighting fixtures. Roof plans are to indicate ridge elevations,roof pitches and locations of drainage systems,chimneys,vents,flues,satellites, antennas, and solar panels. Visual screening of satellites, antennas and solar panels is to likewise be addressed. 5.Elevations-(1/8"=1 '-0"minimum scale),illustrating the exterior appearance of all views labeled in accordance with the site plan. Indicate the height of chimney(s) as compared with the ridge of the roof, the highest ridge of the roof, finished floor elevations, and existing and finished grades for each elevation.Describe all exterior materials,colors,and finishes(walls,roofs,trim,chimneys,windows, doors,light fixtures,etc.). 6.Landscape Plans-(1"=20'-0"minimum scale),including irrigation plans with locations of main irrigation lines, areas of automatic irrigation, type of controls and type of heads; proposed plant materials, sizes, and locations; trees to be removed; tree protection plan; areas of planting,water features,patios,decks,courtyards,utility layout,service areas and any other significant design elements. 7. Lighting Plan - (1/8" = 1'-0" minimum scale), including locations of all exterior architectural and landscape light fixtures. Cut sheets are to be submitted for all proposed fixtures and bulb types, including wattage and lumen specifications for each fixture and the total lumen output calculation for the Homesite. 71 Res 19-23 8. Sample Board(as applicable)-including: • Roof materials and colors • Wall materials and colors • Exterior trim material and color • Window material and color • Exterior door material and color • Stone/rock materials • Exterior rails,fencing,and paving materials • Lighting fixture cut sheets 10. Construction Schedule - include start and completion dates for both building and landscape construction. The ACC reserves the right to amend the Final Design Review submission requirements on a case-by-case basis as required by conditions and considerations particular to each specific project and/or property. Staking and Tree Taping Upon submittal of Final Design Review documents, Applicants are to re-stake the buildings,if the building footprint has been altered from that staked at Preliminary Design Review or if requested by the ACC.The Applicant is to contact the ACC prior to submitting final design documents to confirm staking requirements. Trees proposed for removal are to be marked in the field with red tape.Trees to be pruned and/or limbed are to have blue tape tied to the limb and/or area of trimming. Trees proposed for transplanting are to be taped with yellow ribbon and a stake placed in the proposed location of transplant. Final Design Review Meeting The Owner and/or Consultant(s) may attend the meeting but are not required to be present.The ACC will review and comment on the application at the meeting, allow time for discussion with the Owner and/or Consultant(s),and subsequently provide the Owner with an approval or conclusive recommendations in writing for refinements to the design. A second review meeting may be necessary to review corrected and/or new materials. Corrected materials are to be provided to the ACC a minimum of five (5) working days prior to the next regularly scheduled meeting. Final Design Approval The ACC will issue final design approval in writing.Construction must commence within twelve (12) months of final design approval. Past the twelves months, the owner is required to provide an affidavit that plans are intact and unchanged. 72 Res 19-23 Changes to Approved Plans The Knolls Residential CC&R's contain provisions that any improvements by property Owner must conform with approved plans. Therefore, the final approval of a proposed design constitutes an agreement with the Association that the proposed home or modification to a home be consistent with the approved plans and specifications.The ACC, however,understands that the construction process may ultimately result in either a need or desire to make a change in the approved drawings and will welcome the opportunity to review proposed changes. In the event a change is desired, the Owner, Contractor or Architect must submit the proposed changes in a graphic form to the ACC for review.The ACC will work in a reasonable manner to respond to a request for change as quickly as possible,but the review process will remain consistent with the aforementioned policies and guidelines.Applications for changes to approved plans shall include the following: • A clear statement of the scope of the requested change • A statement supporting the reasons for the change. • Appropriate graphic materials illustrating the change. Note: If changes are made to approved drawings without ACC review and approval, a stop work notice may be posted on the project until such time as the required approval is obtained. To avert delays in construction, submit changes as early as possible for ACC approval. Re-submittal of Plans In the event that final submittals are not approved by the ACC,the Owner will follow the same procedures for a resubmission as for original submittals.An additional design review fee is to accompany each resubmission as required by the ACC. Subsequent Changes Subsequent construction,landscaping or other changes in the intended Improvements that differ from approved final design documents, sample boards or the mock-up are to be submitted to the ACC for review and approval prior to making changes. Work in Progress Observations During construction,the ACC will check construction to ensure compliance with approved final design documents. If changes or alterations have been found that have not been approved,the ACC will issue a Notice to Comply. Notice to Comply In the event that the ACC finds changes and/or alterations during the Construction Monitoring process that have not been approved,the DRC will issue a Notice to Comply. 73 Res 19-23 Notice of Completion Upon completion of construction of the Residence and the landscaping,the Owner and/or Contractor will submit to the ACC a Final Observation Request form for any Improvement(s) given final design approval by the ACC. The ACC will make a final inspection of the property within ten(10)working days of notification,weather permitting. Construction deposit will be returned at this time. Right of Waiver The ACC recognizes that each Homesite and/or Building has its own characteristics and that each Owner has their own individual needs and desires.For this reason,the ACC has the authority to approve deviations from portions of the Guidelines. It should be understood,however,that any request to deviate from these Guidelines will be evaluated at the sole discretion of the ACC. Prior to the ACC approving any deviation from the Design Guidelines,it must be demonstrated that the proposal is consistent with the overall objectives of these Design Guidelines and that the deviation will not adversely affect adjoining properties or The Knolls as a whole. The ACC also reserves the right to waive any of the procedural steps outlined in the Guidelines provided that the Owner demonstrates there is good cause. Non-Waiver, No Inadvertent Precedents An approval by the ACC of drawings, specifications or work done or proposed, or in connection with other matters requiring approval under the Guidelines, including a waiver by the ACC, shall not be deemed to constitute a waiver of the right to withhold subsequent approval. For example, the ACC may disapprove an item shown in the final design submittal even though it may have been evident and could have been,but was not, disapproved at the Preliminary Design Review. An oversight by the ACC of non- compliance at any time during the review process,construction process or during its final inspection does not relieve the Owner/Developer from compliance with these Guidelines and all other applicable codes,ordinances and laws. Any error, omission or misjudgment by the ACC in any one instance shall not constitute the creation of a precedent governing future approvals and decisions. The ACC reserves the right to learn from any such errors or misjudgments and shall not be required to approve repetitions of them. Non-Liability The ACC or any member,employee or agent of the ACC will not be liable to any party for any action,or failure to act with respect to any matter if such action or failure to act was in good faith and without malice. 74 Res 19-23 Design Review Schedule The ACC will make every reasonable effort to comply with the time schedule for design review. However, the ACC will not be liable for delays that are caused by circumstances beyond their control. The ACC will provide design review according to the following schedule: 1.Pre-Design Conference • Meeting scheduled within ten(10)working days of receipt of Pre-Design • Conference request form. 2.Preliminary Design Review • Application documents to be submitted ten (10) working days prior to the next scheduled ACC meeting. • The ACC shall meet within twenty (20) working days to consider a complete application. 3.Final Design Review • Application documents to be submitted ten (10) working days prior to the next scheduled ACC meeting and within one year of preliminary design approval • The ACC shall meet within fifteen (15) working days to consider a complete application. • A second review meeting may be necessary to review corrected and/or new materials. Corrected materials will be provided to the ACC a minimum of five(5) working days prior to the next regularly scheduled meeting. 4.Minor Improvement • Application documents to be submitted a minimum of seven (7) working days prior to the next scheduled ACC meeting. • Written comments from the ACC meeting provided to Owner within seven (7) working days. • A second review meeting may be deemed necessary by the ACC to review refinements,revisions and/or new materials.These materials must be provided to the ACC a minimum of five(5)working days prior to the next regularly scheduled meeting. • Written comments and/or notice of final design approval provided by ACC to Owner within seven(7)working days of the review meeting. 5.Construction Observations • Site Observation with the Contractor prior to any site disturbance, and within seven(7)working days of receipt of written request. • Foundation/Mock-Up Observation within seven (7) working days of receipt of written request. 75 Res 19-23 • Final Construction Observation within seven(7)working days of receipt of written request. • Notice of Completion issued within seven (7) working days of approved Final Landscape Observations. Plan Submittals and Review Fees New residential home construction within The Knolls will utilize the process described in this section.No Improvements may be commenced until the Owner has received a written "Approval" from the ACC. Construction Security Deposit In order to ensure an owner's compliance with the documents,each owner shall pay to the Association a construction deposit (in an amount established by the Board from time to time)upon the owner's submission of final plans and specifications for the construction or modification of an improvement under these Guidelines. Currently, the construction deposit for new construction is$25,000 and$12,500 for remodels,additions or expansions. Said funds shall be held in escrow.Upon final inspection by the ACC and compliance with the approved plans and completion of all landscape and site requirements, the deposit shall be returned net of any Association draws as described below. The Association may draw against the deposit to repair or replace damages to Open Spaces,Association owned improvements including gates, curbs, streetlights,landscape and irrigations systems.The deposit may also be utilized for site clean-up, repairs or replacements to erosion control devices and the like if owner or builder fail to keep the construction site clean or fails to keep mud and silt from the streets and Open Spaces. New or Revision House-Start ACC Application-$2,500 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-$500 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. 76 Res 19-23 Variance ACC Review-$250 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. 77 Res 19-23 ATTACHMENT ONE ACC APPLICATION Deliver to: ACC c/o Address Date: Lot: Block: Phase: Section: Plan#: Bedrooms: Baths: Address: Lot Plan Attached: (Please Circle) Yes/No 1st Floor Masonry% 2,,a Floor Masonry% Chimney: (Please Circle) Yes/No Masonry 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 78 Res 19-23 Trim Color: Door Color: Shutters Color: Garage Color: Square Footage of House: House Width: Front Retaining Wall: (Please Circle)Yes/No Deck: Yes/No Patio: square feet Comments: Builder Name/Contact Information: By: Approval Date: 79 Res 19-23 ATTACHMENT TWO THE KNOLLS AT SOLANA SUPPLEMENT TO THE DESIGN GUIDELINES Shared side yard retaining wall rule These rules shall set forth the responsibilities of adjacent lot owners and are applicable for lots with cross slopes such that the natural grade falls across the street face or width of the lot. Project Consistent Stone All retaining walls constructed on a property line shall be constructed or faced with the stone designated as the community stone. This stone specification shall also apply to any wall visible to a street. The project stone is hereby designated to be available from quarry or as sourced by lot owner to be consistent in type. Wall Location Where retaining walls are constructed alongside lot lines to either facilitate fill on the uphill lot or cut on the downhill lot,the wall shall be located wholly within the lot where the construction activity first occurs. In other words, if the uphill lot is developed first, then builder shall construct the retaining wall within the uphill lot. If the downhill lot is developed first and desires to cut into the slope, thus requiring a retaining wall to withhold the natural grade, the wall shall be wholly located within the downhill lot unless mutually agreed to in writing by the adjacent lot owners. The cost of the retaining wall shall be borne by the owner of the lot where the wall is constructed subject to the following criteria: Cost Sharing If a lot owner constructs a residence on any lot whereby the natural grade is unaltered a side lot line, that lot owner is exempt from participating in any retaining wall cost that the adjacent lot owner may construct. Refer to diagram "A". In diagram "A" the owner of lot 1 did not alter grades at either side yard lot line, and therefore would not participate in any side yard retaining wall costs. They would pay for 50%of each side yard fence. If two adjacent lots are both altered from natural grade whereby the uphill lot and the downhill lot both require the shared side yard retaining wall as illustrated in diagram "B",then the cost of the wall shall be shared 50/50 by both lot owners. In diagram"B",both lot owner 1 and 2 have altered the grade at their common side property line and therefore both contribute equally to the cost of the shared wall. The owner of the lot to be developed first shall fund the full cost of the wall. The lot owner shall provide the ARC, or their designate, an invoice showing the full cost of the side yard wall.At such time as the adjacent lot is developed,the owner of that lot shall remit a reimbursement of 50% of that wall to the ARC at the time 80 Res 19-23 the construction deposit is paid to the ARC. The ARC shall remit the reimbursement to the lot owner who constructed the wall. Any agreement to the contrary must be made in writing prior to the wall construction, signed by both lot owners and provided to the ARC. The obligation to reimburse shall attach to the lot and the ARC shall be able to lien the lot owing the reimbursement. Shared Fences All side yard retaining walls shall be constructed with corings at 8 ft on center to receive fence posts for a steel picket fence as described in the Design Guidelines. Regardless of whether a retaining wall is constructed along a side yard lot line, any fence that is installed along a side yard lot line shall be shared 50/50 by both lot owners. The fence shall be installed as part of the retaining wall construction regardless of whether the wall was constructed by the uphill or downhill lot owner. 81 Res 19-23 The Knolls at Solana Retaining Wall retaining wall rule 1 1 Diagram "A" i Diagram "B" 82 Res 19-23 ATTACHMENT THREE NORTH TEXAS PLANT LIST The following list should be used as a starting point for selecting plants in The Knolls. 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) 83 Res 19-23 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) 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) 84 Res 19-23 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.) 85 Res 19-23 Canopy Trees at Street/Lot: Shumard Red Oak(Quercus shumardii)— Lacebark Elm(Ulmus parvifolia) Live Oak(Quercus virginiana)- Cedar Elm(Ulmus crassifolia)- II. ri Chinquapin Oak(Quercus muehlenbergii) Allee Elm(Ulmus parvifolia 'Emer II') r n 86 Res 19-23 Texas Ash(Fraxinus texensis) Bur Oak(Quercus macrocarpa) Jill, White Ash(Fraxinus americana) Lacey Oak(Quercus laceyi) J f; Canopy Trees at Open Spaces: Ornamental Trees: Bald Cypress(Taxodium distichum) Desert Willow(Chilopsis linearis) F• a � 87 Res 19-23 Thornless Mesquite Yaupon Holly(Ilex vomitoria) «. l X Mexican Plum(Prunus mexicana) Possomhaw Holly(Ilex decidua) r Redbud(Redbud spp.) Eastern Red Cedar(Juniperus virginiana) I _ ' r I Res 19-23 Ili r . s: r y t. sfT � t Ip It N , h �3 a. a I Sr ' ! I��1.`} w �^ r• - _ _ - _ III i. ` s w_ JJ,Y,fiy+ 14 ! J or � .L Grasses: Switchgrass(Panicum virgatum) Eastern Gamagrass(Tripsacum dactyloides) 1 .u� Big Bluestem(Andropogon gerardii) Gulf Muhly(Muhlenbergia capillaris) 9 Bushy Bluestem(Androphgon glomeratus) Indiangrass(Sorghastrum nutans) r 1 ,td f 1.. 77r.4w<Pr 92 Res 19-23 Perennials Inland Seaoats(Chasmanthium latifolium) Black Eyed Susan(Rudbeckia hirta) k - Lindheimer Muhly(Muhlenbergia lindheimeri) Blackfoot Daisy(Melampodium leucanthum) r „ _4 2 A Little Bluestem(Schizachyrium scoparium) Blue Mist Flower(Eupatorium greggii) ''' 93 Res 19-23 Butterfly Weed(Asclepias tuberosa) Fall Obedient Plant(Physostegia virginiana) Cardinal Flower(Lobelia cardinalis) Four-nerve Daisy(Hymenoxys scaposa) h Coreopsis(Coreopsis lanceolata) Fragrant Phlox(Phlox pilosa) � 1 w rdPS r 1 � 94 Res 19-23 .y.f F. irk .. �7 � IM p• rf �}�, � Et`, � �/1�1.���`��. l�'.. �R Y1 f.rl r, Scarlet Sage(Salvia coccinea) Yellow Columbine(Aquilegia spp.) � reps Texas Lantana(Lantana horrida) a L Winecup(Callirhoe involuncrata) t v•' 96 Res 19-23