Declaration of Covenants, Conditions and Restrictions of Covington at Cross Creek

Section 1. Membership

Every Owner of a Lot is a Member of the Association. If title to a Lot is held by more than one person, each such person is a member. An Owner of more than one Lot is entitled to one membership for each Lot owned. Each membership is appurtenant to the Lot upon which it is based and it is transferred automatically by conveyance of title to that Lot and may not be separated from ownership of a Lot. No person except an Owner may be a Member of the Association, and membership in the Association may not be transferred except by transfer of title to a Lot. An Owner who is a contract seller may assign such Owner’s membership and voting rights to such Owner’s vendee in possession.

Section 2. Voting

The association shall have two classes of voting membership:

Class A. The Class A members shall be all Owners, with the exception of Developer, and shall be entitled to one vote for each Lot owned. When more than one person holds an interest in each Lot owned, all such persons shall be members. The vote for such Lot shall be exercised as they determine, but in no event shall more than one vote be cast with respect to any Lot.

Class B. The Class B members shall be Developer who shall be entitled to three (3) votes for each lot owned. The Class B membership shall cease and be converted to Class A membership on the happening of one of the following events, whichever occurs earlier:

(a) when the total votes outstanding in the Class A membership equal the total votes outstanding in the Class B membership; or

(b) on the anniversary date seven years from the date when the first Lot is conveyed to a Class A Member.

Section 3. Common Area

Subject to the rights of Owners set forth in this Declaration, the Association has exclusive management and control of the Common Area, its improvements if any, and all related furnishings, equipment, fencing and other personal property, if any. The Association’s duties with respect to the Common Area include the management and operation of, improvements, equipment, and personal property installed by the Developer on the Common Area, so as to keep all of the foregoing in good, clean substantial, attractive, sanitary, safe and serviceable condition, order and repair; the payment of all taxes validly levied, assessed, or imposed with respect to the Common Area; and the maintenance of adequate public liability and property insurance with respect to the Common Area. The initial Common areas in the subdivision are the easements containing the entry features; perimeter walls; and drainage easements which contain water retention ponds.

Section 4. Exterior Maintenance

The association has no duty of exterior maintenance with respect to any Lot; and each Owner must maintain such Owner’s Lot, including any appurtenant driveways, in a safe, sanitary and reasonably attractive condition. If:

(a) Any Owner refuses or fails to make any repairs, maintenance, or replacements required by Article III, Section 19, above, and

(b) As a result, any condition on or adjoining such Owner’s Lot becomes a hazard or nuisance to any other Owner, or diminishes or impairs the value or marketability of any other Lot, or is visually objectionable to persons lawfully upon the Properties; and

(c) At least seventy-five percent (75%) of the members of the Board find that the Owner was provided reasonable notice of the failure of repair, maintenance or replacement and the Board’s consideration thereof, and was given an opportunity to be heard by the Board; then, upon the occurrence of all of the foregoing, the Association may make or perform such repairs, maintenance, or replacements as reasonably are necessary to correct such condition and assess all costs so incurred against such Owner’s Lot as provided in Article V, Section 4, below.

Section 5. Access By Association

The Association has a right of entry onto the exterior portions of each Lot to the extent reasonably necessary to discharge its duties of exterior maintenance, if any, or for any other purpose reasonably related to the Association’s performance of any duty imposed, or exercise of any right granted by this Declaration or by any applicable Supplemental or Amended Declaration. Such right of entry shall be exercised in a peaceful and reasonable manner at reasonable times and upon reasonable notice whenever circumstances permit. Entry into any improvement upon any Lot shall not be made without the consent of its Owner or occupant for any purpose, except pursuant to Court order or other authority granted by Law. No Owner shall withhold consent arbitrarily to entry by the Association for the purpose of discharging any duty or right of exterior maintenance if such entry is upon reasonable notice, at a reasonable time, and in a peaceful and reasonable manner. The Association’s right of entry may be exercised by its agents, employees and contractors.

Section 6. Services

The Association may obtained and pay for the services of any person to manage its affairs to the extent the Board deems advisable, as well as such other personnel as the Board determines are necessary or desirable for the proper operation of the Properties, whether such personnel are furnished or employed directly by the Association or by any person with whom it contracts. Without limitation, the Board may obtain and pay for legal and accounting services necessary or desirable in connection with the operation of the Properties or the enforcement of this Declaration, or the Articles, By-Laws, rules and regulations.

Section 7. Rules and Regulations

As provided in the Bylaws, the Association, from time to time may adopt, alter, amend, rescind and enforce reasonable rules and regulations governing the use of the Properties, consistent with the rights and duties established by this Declaration. The Association’s procedures for enforcing its rules and regulations at all times must provide the affected Owner with reasonable prior notice and a reasonable opportunity to be heard, in person, or through representatives of such Owner’s choosing, or both.

Section 8. Capital Improvements

Except for replacement or repair of items installed by the Developer, if any, and except for any personal property related to the Common Area, the Association may not authorize capital improvements to the Common Area without the prior approval of seventy-five percent (75%) of the Association Members present and voting in person or by proxy at a meeting duly convened for such purposes as provided in Article V, Section 3, below.

Section 9. Amplification

The provisions of this Declaration may be amplified by the Articles of Incorporation and By-Lays of COVINGTON AT CROSS CREEK HOMEOWNERS ASSOCIATION, INC., but no such amplification shall alter or amend substantially any of the rights or obligations of the Owners set forth in the Declaration, or any Supplemental Declaration. The Developer intends that the provisions of this Declaration and any Supplemental or Amended Declaration, on the one hand, and the Articles of Incorporation and By-Laws on the other hand, be interpreted, construed, and applied to avoid inconsistencies or conflicting results. If such conflict necessarily results, however, Developer intends that the provisions of this Declaration, or any Supplemental or Amended Declaration, control anything to the contrary in the Articles of Incorporation or By-Laws.

Section 10. Master Association

The Master Association shall have the power to veto any action taken or contemplated to be taken by the Association which the Board of Directors of the Master Association reasonably determines to be adverse to the interests of the Master Association or its members or inconsistent with the Community Wide Standard of the Master Association, or otherwise not in conformity with the Master Declaration of the Master Association. The Master Association shall also have the power to require specific action to be taken by the Association in connection with its obligations and responsibilities hereunder or under any covenants affecting the Properties. Without limiting the generality of the foregoing, the Master Association may require specific maintenance or repairs or aesthetic changes to be effected by the Association, may require that a proposed budget include certain items and that expenditures be made therefor, and may veto or cancel any contract providing for maintenance, repair, or replacement of the property governed by the Association.

Any action required by the Master Association, in a written notice pursuant to the foregoing paragraph, to be taken by the Association shall be taken within the time frame set by the Master Association in such notice. If the Association fails to comply with the requirements set forth in such written notice, the Master Association shall have the right to effect such action on behalf of the Association and shall assess the Owners for their pro rata share of any expenses incurred by the Master Association in connection with the foregoing.