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2024-18401 / Court: 129
EXHIBIT B
Restrictions
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a 01/27/04 300343660 $47.00
DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FO)
NEW FOREST, SECTION ONE
THE STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
q COUNTY OF HARRIS §
THAT this Declaration of Covenants, Conditions and Restrictions for New Forest, Section One
\-_- (hereinafter referred to as the “Restrictions") is made on the date hereinafter set forth by NEW FOREST
{ PROPERTIES, L.P., a Texas limited partnership (hereinafter referred to as Declarant");
WITNESSETH:
WHEREAS, Declarant is the owner of that certain real property known as New Forest, Section One
(hereinafter referred to as the Property"), being a subdivision in Harris County, Texas, according to the map or
plat (hereinafter referred to as "Plat") thereof recorded under Harris County Clerk’s File No. X171338 and Film
Code No. 545208; and
”
is WHEREAS, it is deemed to be in the best interests of Declarant and any other persons who may
purchase property in New Forest, Section One, that there be established and maintained a uniform plan for the
oh improvement and -development of the Property, as a highly restricted and modern subdivision of the highest
quality;
a
N NOW, THEREFORE, Declarant hereby declares that the Property shall be held, sold and conveyed
subject to the following easements, restrictions, covenants, and conditions, all pf which are for the purpose of
enhancing and protecting the value, desirability and attractiveness of said Property. These easements,
% covenants, restrictions, and conditions shall run with said real property and be binding upon all parties having or
la acquiring any right, title or interest in a Lot, as hereinafter defined, their heirs, successors and assigns, and shall
inure to the benefit of each owner thereof.
ARTICLE I
DEFINITIONS
The following words, when used in this Declaration of Covenants, Conditions and Restrictions, shall
have the following meanings:
Section 1. "Association" shall mean and refer to New Forest Homeowners Association, a Texas
non-profit corporation, its successors and assigns.
Section 2. “Common Area" shall mean and refer to that property owned or.to be acquired by the
Association and shall include, but is not limited to Restricted Reserves B, C, D, E, F, G, H, and I of New
Forest, Section One, such reserves being restricted to landscape open space, storm water détention areas and
utility easements on the Plat and as such areas that Declarant annexes pursuant to the provisions hereof as
Common Area.
Section 3. "Declarant" shall mean and refer to New Forest Properties, L.P., its successors and assigns,
provided such successors and assigns (i) acquire more than one Lot in the Subdivision for purposes of
development or resale and (ii) are designated as the Declarant by an instrument in writing executed by
Declarant, and filed of record in the Official Public Records of Real Property of Harris County, Texas.
Rorte
Section 4, "Lot" shall mean and refer to any of the numbered lots shown on the Plat or any replat
thereof.
Section 5. “Living Unit" shall mean and refer to any improvements on a Lot which are designed and
intended for occupancy and use as a residence by one person, by a single family, or by persons living together
as a single housekeeping unit, provided, however, the term “Living Unit" shall not include a garage constructed
on the Lot which is detached from the other improvements on the Lot.
Section 6. "Occupied Lot" shall mean and refer to any Lot on which there is a Living Unit in which one
or more persons are residing.
Section 7. "Member" shall mean and refer to every person or entity that holds a membership in the
Association.
Section 8. "Owner" shall mean and refer to the record owner, whether one or more persons or entities, of
fee simple title to any Lot which is a part of the Subdivision, but excluding those having such interest merely as
* security for the performance of an obligation. However, the term "Owner" shall include any mortgagee or lien
ie holder who acquires fee simple title to any Lot through judicial or nonjudicial foreclosure.
Section 9.-"Subdivision" shall mean and refer to that certain real property within the perimeters of the
legal description of New Forest, Section One, a subdivision in Harris County, Texas, as set forth on the Plat
i thereof recorded under Harris County Clerk’s File No. X171338 and Film Code No. 545208 and any other
N annexed property pursuant to Article XII hereof. As used in this Declaration, the term "Subdivision" shall not
over or include any of the Common Area.
% ARTICLE I
i PROPERTY RIGHTS
Section 1. Owner's Easement of Access and Enjoyment. Every Owner shall have an easement of access
and a right and easement of enjoyment in and to the Common Area and such easement shall be appurtenant to
and shall pass with the title to every Lot, subject to the following provisions:
(a) The right of the Association to charge a reasonable admission and other fees for the
use of any recreational facilities situated on the Common Area;
(b) The right of the Association as set forth in Article IV, Section 8, to suspend a
Member's voting rights and right to use the recreational and other facilities owned or operated by
the Association for any period during which any assessment against his Lot or any other sum due
the Association by the Member remains unpaid; and for a period not to exceed sixty (60) days
for any infraction of its published rules and regulations; and
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(c) The right of the Association to dedicate or transfer all or any part of the Common
Area to any public agency, authority or utility for such purpose and subject to such conditions as
may be determined by the Association.
Section 2. Delegation of Use. Any Owner may delegate in accordance with the Bylaws of the
Association, his right or enjoyment to the Common Area and facilities to members of his family or his tenants
who reside on the Lot owned by him. The Declarant, for each Lot owned within the Subdivision, hereby
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covenants, and each Owner of any Lot, by acceptance of a Deed therefor, whether it shall be express in the
Deed or the evidence of the conveyance, is deemed to covenant that any lease executed on a Lot shall be in
writing and contain provisions binding any lessee thereunder to the terms of this Declaration and any rules and
regulations published by the Association applicable to the Common Area and further providing that
noncompliance with the terms of this Declaration and any rules and regulations published by the Association
shall be a default thereunder.
Section 3. Title to the Common Area. The Common Area shall be owned by the Association or its
successors and assigns, it being agreed that this provision is necessary in order to preserve the rights of the
Owners with respect to the operation and management of the Common Area. Notwithstanding the above, the
Declarant reserves the right to grant, convey, dedicate or reserve easements over, on or under the Common Area
for utility services as set forth in Article XI, Section 1 hereof.
ARTICLE Il
MEMBERSHIP AND VOTING RIGHTS
Section 1. Organization. The Association has been organized as a nonprofit corporation under the laws
if of the State of Texas. In addition to this Subdivision, it is anticipated that the Association shall also have
jurisdiction over future property annexed pursuant to Article XII hereof. The principal purposes of the
8 Association are.the collection, expenditure and management of the maintenance funds, maintenance of the
i Common Area, enforcement of the Restrictions, providing for the maintenance, preservation, and architectural
control within the Subdivision, the general overall supervision of all of the affairs and well-being of the
nd Subdivision and other subdivisions within its jurisdiction and the promotion of the health, safety and welfare of
N the residents within the Subdivision and other subdivisions subsequently coming within its jurisdiction.
Section 2. Membership. Every person or entity who is an Owner shall hold a membership in the
% Association. The foregoing is not intended to include persons or entities that hold an interest in a Lot merely as
0 security for the performance of an obligation. Membership shall be appurtenant to and may not be separated
from ownership of a Lot. Ownership of a Lot shall be the sole qualification for membership. Any mortgagee or
lien holder who acquires title to any Lot which is a part of the Subdivision through judicial or nonjudicial
foreclosure shall be a Member of the Association.
Section 3. Board of Directors. The Association shall act through a Board of Directors who will manage
the affairs of the Association as specified in the Bylaws of the Association.
Section 4. Voting Rights. There shall be two classes of membership entitled to voting rights in the
Association with respect to the Subdivision and they shall be as follows:
(a) Class A: All Owners other than Declarant, shall be considered Class A Members, and
for each Lot owned shall be entitled to one (1) vote on each matter coming before the Members
at any meeting or otherwise, unless their voting rights have been suspended by the Board of
Directors as hereinabove provided in Article II, Section 1(b). When a particular Lot ig owned by
more than one individual or entity, all the individuals or entities holding an ownership interest in
that Lot shall be considered Class A Members, however, for that particular Lot they shall be
entitled to a total of no more than one vote on each matter coming before the Members at any
meeting or otherwise. The vote for such Lot shall be exercised as they among themselves
determine.
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(b) Class B: Class B Members shall be the Declarant, and for each Lot owned it shall be
entitled to three (3) votes on each matter coming before the Members at any meeting or
otherwise. Once a Lot is sold to an individual or individuals who would be classified as Class A
Members, the three (3) votes attached to that Lot shall be extinguished, subject to paragraph (c)
below. All Class B memberships with respect to the Subdivision shall cease and be automatically
converted into Class A Memberships on the happening of any of the following events, whichever
occurs earlier:
@) When the total number of votes entitled to be cast by the Class A
Members with respect to the Subdivision at any meeting of the Members or
otherwise; equals the total number of votes entitled to be cast by the Class B
Members with respect to the Subdivision;
(i) Ten (10) years from the date these Restrictions are filed with the
County Clerk of Harris County, Texas, for recordation in the Official Public
Records of Real Property of Harris County, Texas; or
£ (iii) At such earlier time as the Class B Member, in its sole discretion,
shall elect.
m (c)- Reinstatement of Class _B Members. Notwithstanding the prior provisions of
paragraph (b) above, if additional property is brought within the jurisdiction of the Association
such that the Declarant owns more than 25% of all Lots under the jurisdiction of the Association,
N then the provisions in the first sentence of paragraph (b) above shall be automatically reinstated
ipso facto.
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ARTICLE IV
COVENANT FOR MAINTENANCE ASSESSMENTS
Section 1. Creation of the Lien and Personal Obligation for Assessments. The Declarant, for each Lot
within the Subdivision which is or becomes subject to the assessments hereinafter provided for, hereby
covenants, and each Owner of any Lot that is or becomes assessable, by acceptance of a deed therefore, whether
or not it shall be express in the deed or other evidence of the conveyance, is deemed to covenant and agree to
pay the Association the following:
(a) Annual assessments or charges;
(b) Special assessments for capital improvements; and
(c) Any other sums to the extent they are specifically provided for elsewhere in this
instrument.
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Such assessments or charges are to be fixed, established and collected as hereinafter provided. These charges
and assessments, together with such interest thereon and cost of collection thereof, as hereinafter provided, shall
be a charge on the land and shall be secured by a continuing lien upon the Lot against which such assessments
or charges are made. Each such assessment or charge, together with such interest, costs of collection and
reasonable attorney's fees shall also be and remain the personal obligation of the Owner of the particular Lot at
the time the assessment or charge becomes due notwithstanding any subsequent transfer of title to such Lot. The
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personal obligation for delinquent assessments and charges shall not pass to successors in title unless expressly
assumed by them.
Section 2. Purposes of Assessments. The assessments levied by the Association shall be used
exclusively for the purpose of promoting the recreation, health, safety, and welfare of the residents of the
Subdivision. Without limiting the foregoing, the total assessments accumulated by the Association, insofar as
the same may be sufficient, shall be applied toward the payment of all taxes, insurance premiums and repair,
maintenance and acquisition expenses incurred by the Association and at the option of the Board of Directors of
the Association for any or all of the following purposes: lighting, sidewalks, paths, parks, parkways, and
esplanades in the Subdivision and in other subdivisions that may come within its jurisdiction; collecting and
disposing of garbage, ashes, rubbish, and materials of a similar nature; payment of legal and all other expenses
incurred in connection with the collection, enforcement and administration of all assessments and charges and
in connection with the enforcement of this Declaration of Covenants, Conditions and Restrictions; providing for
the planting and upkeep of landscaping on esplanades and in the Common Area; acquiring and maintaining any
amenities or recreational facilities located upon the Common Areas; and doing any other thing necessary or
desirable in the opinion of the Board of Directors of the Association to keep and maintain the property in the
Subdivision and in other subdivisions that may come within its jurisdiction in neat and good order or which they
Ne consider of general benefit to the Owners or occupants of the Subdivision and in other subdivisions that may
tw come within its jurisdiction, including the establishment and maintenance of a reserve for repair, maintenance,
taxes, insurance,; and other charges as specified herein. The judgment of the Board of Directors of the
tt Association in establishing annual assessments, special assessments and other charges and in the expenditure of
said funds shall be final and conclusive so long as said judgment is exercised in good faith
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N Section 3. Basis and Maximum Level of Assessment. Until January 1 of the year immediately following
the conveyance of the first Lot from Declarant to an Owner, the maximum annual assessment shal! be $400.00
per Lot. Such assessments shall be prorated if the first year is a partial year. From and after the first day of
% January of the year immediately following the date of commencement of the first annual assessment, the
ii maximum annual assessment may be increased by the Board of Directors of the Association, effective the first
day of January of each year, in conformance with the rise, if any, in the Consumer Price Index for Urban Wage
Earners_and Clerical Workers published by the Department of Labor, Washington, D.C., or any successor
publication, for the preceding month of July or alternatively, by an amount equal to a ten percent (10%) increase
over the prior year’s assessment, whichever is greater, without a vote of the Members of the Association. The
maximum annual assessment may be increased above that established by the Consumer Price Index formula or
the above-mentioned percentage increase only by approval of two-thirds (2/3) of each class of members in the
Association present and voting as separate classes at a meeting duly called for this purpose. This increase shall
become effective on the date specified in the document evidencing such approval only after such document has
been filed for record in the office of the County Clerk of Harris County, Texas. After consideration of current
maintenance costs and future needs of the Association, the Board of Directors may fix the annual assessment at
an amount not in excess of the maximum amount approved by the Members.
Anything to the contrary notwithstanding, the maximum annual assessment shall be chargeable and
payable as follows:
(a) Occupied Lots: Those Lots containing an occupied Living Unit (that is, a Living Unit
that has been initially occupied, although it may no longer be occupied) shall be assessed the full
assessments as set by the Board of Directors of the Association;
(b) Completed Living Unit: Those Lots containing a substantially completed but
unoccupied Living Unit (that is, a Living Unit that has not been initially occupied), shall be
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assessed fifty percent (50%) of the full assessments asset by the Board of Directors of the
Association; and
(c) Vacant Lots: Those Lots which are vacant or upon which a residence is under
construction shall be assessed at a rate equal to fifty percent (50%) of the full assessments as set
by the Board of Directors of the Association. If such Owner fails to maintain said Lot in
accordance with the requirements set forth in this Declaration, the Association is hereby
authorized to do so and any expense the Association incurs thereby shall become a lien on the
Lot and the general personal obligation of said Owner.
Section 4. Community Enhancement Fee. In addition to the regular annual assessment, as a condition
to the sale of every Lot, every purchaser and seller, (other than the Declarant), shall be assessed a community
enhancement fee of $100.00 per Lot that shall be paid by the seller and by the purchaser at every closing for a
total of $200.00 per Lot per closing (the “Community Enhancement Fee”). The Community Enhancement Fee
shall be for the sole benefit of the Association. Upon the fifth anniversary of the recording of this Declaration,
the Community Enhancement Fee that will be payable at every closing by every purchaser and seller (other than
Declarant), shall be the greater of $100.00 per Lot or .15% of the sales price of the Lot (including
improvements). By way of example, if the Lot sells for $100,000.00 prior to the fifth anniversary, the
he Community Enhancement Fee that will be paid by the seller and purchaser at closing shall be $100.00 by each
9 party.
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Section 5, Special Assessments for Capital Improvements. In addition to the annual assessments and
” Community Enhancement Fee authorized above, the Board of Directors of the Association may levy, in any
N assessment year, a special assessment applicable to that 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, including fixtures and personal property related thereto, provided that any such assessment shall
have the vote or written assent of two-thirds (2/3) of each class of Members present and voting at a meeting
called in accordance with Section 6 below..
Section 6. Notice and Quorum Any Action Authorized Under Sections 3 and 5. Written notice of any
meeting called for the purpose of taking any action authorized under Section 3 or 5 which requires a vote of the
Members shall be sent to all Members not less than 15 days or more than 60 days in advance of such meeting.
At the first such meeting called, the presence of Members or of proxies entitled to cast two-thirds (2/3) of all the
votes of each class of membership shall constitute a quorum. If the required quorum is not present, another
meeting may be called subject to the same notice requirements, and the required quorum at the subsequent
meeting shall be one-half (1/2) of the required quorum at the preceding meeting. No such subsequent meeting
shall be held more than 60 days following the preceding meeting.
Section 7. Date of Commencement and Determination of Annual Assessment. The annual assessment
provided for herein shall commence as to all Lots on a date fixed by the Board. of Directors of the Association.
The first assessments shall be adjusted according to the number of months remaining in the calendar year. On or
before the 30th day of November in each year, the Board of Directors of the Association shall fix the amount of
the annual assessments to be levied against each Lot in the next calendar year. Written notice of the figure at
which the Board of Directors of the Association has set the annual assessments shall be sent to every Owner
whose Lot is subject to the payment thereof. However, the failure by the Board of Directors of the Association
to fix an annual assessment for any year will not be deemed a waiver with respect to any of the provisions of
this Declaration or a release of liability of any Owner to pay assessments, or any installments thereof, for that or
any subsequent year. In the event of such failure, annually each Owner shall pay the same amount as the annual
assessments established for the previous year until the new annual assessments are established. When the new
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assessments are established by the Board of Directors of the Association, they shall be applied retroactively to
the commencement of the then current assessment year and the deficit shall be paid by each Owner within thirty
(30) days after receipt of a statement therefor. Assessments shall be due and payable yearly in advance on the
first day of January or as directed by the Board of Directors of the Association. The Association shall, upon
demand, and for reasonable charge, furnish a certificate signed by an officer of the Association setting forth
whether the assessments on a specified Lot have been paid. A properly executed certificate of the Association as
to the status of assessments on a particular Lot is binding upon the Association as of the date of its issuance.
Section 8. Effect of Non-Payment of Assessments; Remedies of the Association. Any assessments or
charges which are not paid when due shall be delinquent. If an assessment or charge is not paid within thirty
(30) days after the due date, it shall bear interest from the due date at the lesser of (i) eighteen percent (18%) per
annum or (ii) the maximum rate permitted by law, and the Association may bring an action at law against the
Owner personally obligated to pay the same, or foreclose the lien herein retained against the Lot. Interest, costs
of collection and reasonable attorneys’ fees incurred in any such action shall be added to the amount of such
assessment or charge. In order to secure the payment of the assessments or charges hereby levied, a vendor's
lien for the benefit of the Association shall be and is hereby reserved in the Deed from the Declarant to the
purchaser of each Lot or portion thereof, which lien shall be enforceable through appropriate judicial and
ph nonjudicial proceedings by the Association. As additional security for payment of the assessments and charges
hereby levied, each Owner of a Lot in the Subdivision, by such party's acceptance of a deed thereto, hereby
grants the Association a lien on such Lot which may be foreclosed on by nonjudicial foreclosure and pursuant to
the provisions of Section 51.002 of the Texas Property Code (and any successor statute); and each such Owner
hereby expressly grants the Association a power of sale in connection therewith. The Association shall,
whenever it proceeds with nonjudicial foreclosure pursuant to the provisions of said Section 51.002 of the
N Texas Property Code and said power of sale, designate in writing a Trustee to post or cause to be posted all
required notices of such foreclosure sale and to conduct such foreclosure sale. The Trustee may be changed at
any time and from time to time by the Association by means of a written instrument executed by the President
® or any Vice President of the Association and filed for record in the Real Property Records of Harris County,
Texas. In the event that the Association has determined to nonjudicially foreclose the lien provided herein
pursuant to the provisions of said Section 51.002 of the Texas Property Code and to exercise the power of sale
hereby granted, the Association shall mail to the defaulting Owner a copy of the Notice of Trustee's Sale not
less than twenty-one (21) days prior to the date on which sale is scheduled by posting such notice through the
US. Postal Service, postage prepaid, registered or certified, return receipt requested, properly addressed to such
Owner at the last known address of such Owner according to the records of the Association. If required by law,
the Association or Trustee shall also cause a copy of the Notice of Trustee's Sale to be recorded in the Real
Property Records of Harris County, Texas. Out of the proceeds of such sale, there shall first be paid all expenses
incurred by the Association in connection with such default, including reasonable attomey's fees and a
reasonable trustee's fee; second, from such proceeds there shall be paid to the Association an amount equal to
the amount of default; third, there shall be paid any amounts required by law to be paid before payment to the
Owner; and, fourth, the remaining balance shall be paid to such Owner. Following any such foreclosure, each
occupant of any such Lot foreclosed on and each occupant of any improvements thereon shall be deemed to be
a tenant at sufferance and may be removed from possession by any and all lawful means, including a judgment
for possession in an action of forcible detainer and the issuance of a writ of restitution thereunder.
In addition to foreclosing the lien hereby retained, in the event of nonpayment by any Owner of such
Owner's portion of any assessment or charge, the Association may, acting through the Board, upon ten (10)
days prior written notice thereof to such nonpaying Owner, in addition to all other rights and remedies available
at law or otherwise, restrict the rights of such nonpaying Owner to use the Common Areas, if any, in such
manner as the Association deems fit or suspend the voting rights of such nonpaying Owner so long as such
default exists.
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It is the intent of the provisions of this Section 7 to comply with the provisions of said Section 51.002 of
the Texas Property Code relating to nonjudicial sales by power of sale and, in the event of the amendment of
said Section 51.002 of the Texas Property Code hereafter, the President or any Vice President of the
Association, acting without joinder of any other Owner or mortgagee or other person may, by amendment to
this Declaration filed in the Real Property Records of Harris County, Texas, amend the provisions hereof so as
to comply with said amendments to Section 51.002 of the Texas Property Code.
No Owner may waive or otherwise escape liability for the assessments provided for herein by nonuse of
the Common Area or abandonment of such Owner’s Lot. In addition to the above rights, the Association shall
have the right to refuse to provide the services of the Association to any Owner who is delinquent in the
payment of the charges or assessments.
Section 9. Subordination of the Lien to Mortgages The lien created in this Article IV shall be
subordinate to valid purchase money liens or mortgages and any valid lien securing the cost of construction of
home improvements. Sale or transfer of any Lot shall not affect said lien; however, the sale or transfer of any
Lot which is subject to any valid first purchase money lien or mortgage or valid lien securing the construction
of improvements pursuant to a judicial or nonjudicial foreclosure under such lien or mortgage or any
conveyance in satisfaction of such debt (commonly called a "deed in lieu of foreclosure") shall extinguish the
lien securing such assessment or charge only as to payments which became due prior to such sale or transfer
and additionally shall not cause a merger of such lien with the title conveyed in satisfaction of such debt. No
sale or transfer shall relieve such Lot or the Owner thereof from liability from any charges or assessments
thereafter becoming due or from the lien thereof. In addition to the automatic subordination provided
N hereinabove, the Association, in the discretion of its Board of Directors, may subordinate the lien securing any
assessment provided for herein to any other mortgage, lien or encumbrance, subject to such limitations, if any,
as such Board may determine.
Section 10. Exempt Property. All properties dedicated to, and accepted by, a local public authority and
all properties owned by a charitable or nonprofit organization exempt from taxation by the laws of the State of
Texas shall be exempt from the assessments and charges created herein. Notwithstanding the foregoing, no Lot
which is used as a residence shall be exempt from said assessments and charges.
Section 11. Compliance with Texas Residential Property Owners Protection Act. Notwithstanding
anything contained in these Restrictions to the contrary, it is the desire and intention of Declarant that the
provisions of the Texas Residential Property Owners Protection Act, Sections 209.001 — 209.011 of the Texas
Property Code (“TRPOA”), as it may be amended from time to time, shall be complied with at all times. If any
provision of these Restrictions is in violation of or in conflict with the TRPOA then such provision shall be
construed in such a manner as to be consistent with the TRPOA and shall no be held to invalidate any other
provision of these Restrictions.
ARTICLE V
INSURANCE
The Association, through the Board of Directors or its duly authorized agent, shall have the authority to
obtain the following types of insurance policies:
(a) Property insurance covering the Common Area and all improvements thereon in an
amount equal to the full replacement value of the improvements and facilities located upon the
Common Area and owned by the Association (including all building service equipment and the
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like) with an “agreed amount endorsement" or its equivalent, a "demolition endorsement" or its
equivalent and, if necessary an “increased cost of construction endorsement" or "contingent
liability from operation of building laws endorsement" or the equivalent, affording protection
against loss or damage by fire and other hazards covered by the standard extended coverage
endorsement in Texas, and by sprinkler leakage, debris removal, cost of- demolition, vandalism,
malicious mischief, windstorm, and water damage, and any such other risk as shall customarily
be covered with respect to projects similar in construction, location and use;
(b) A comprehensive policy of public liability insurance covering all of the Common
Area and insuring the Association, within such limits as it may consider acceptable (for all
claims for personal injury and/or property damage arising out of a single occurrence); such
coverage to include protection against water damage liability, liability for non-owned and hired
automobiles, liability for property of others, and any other coverage the Association deems
prudent and which is customarily carried with respect to projects similar in construction, location
and use; and
(c) A policy of fidelity coverage to protect against dishonest acts on the part of officers,
A directors, trustees, and employees of the Association and all others who handle, or are
2 responsible for handling funds of the Association; such fidelity bonds shall be of the kind and in
§ an amount the Association deems necessary for the protection of the Owners.
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Premiums for all such insurance policies carried by the Association shall be a common expense payable from
‘el the annual assessments on all of the Lots. Liability and property insurance for Lots and the contents of
residences shall be the responsibility of each Owner. All proceeds from policies held by the Association shall be
deposited in a bank or other financial institution, the accounts of which bank or institution are insured by a
fd federal governmental agency, with the provision agreed to by said bank or institution that such funds may be
g withdrawn only by signature of at least two (2) of the members of the Board of Directors, or other signatories
if duly authorized by the Board of Directors. In no event shall the insurance company or the bank or other
financial institution holding proceeds of a policy issued in the name of the Association be authorized to
distribute any proceeds therefrom to the Declarant. Proceeds from such policies shall be used by the Association
only for the benefit of its Members and where such proceeds arise out of an occurrence in which a building or
improvement owned by the Association is damaged or destroyed, they shall be used to repair, restore and
rebuild such building or improvements if the Board of Directors so determines. In the latter event, the Board of
Directors shall advertise for sealed bids from licensed contractors, and upon acceptance of a bid received
thereby, may negotiate with the contractor, who shall be required to provide a full performance and payment
bond for the repair, reconstruction or rebuilding of such destroyed improvements or buildings. In the event the
insurance proceeds are insufficient to pay all costs of repairing and/or rebuilding said improvements to their
original condition, the Association may levy a special assessment for capital improvements against all Owners
to make up the deficiency. This shall be done only after compliance with all the requirements for imposition of
special assessments. ~
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ARTICLE VI
ARCHITECTURAL CONTROL
Section 1. Architectural Control Committee. There is hereby created an Architectural Control
Committee (herein referred to as the "Committee") which will be comprised of three (3) members. Any two (2)
of the members of the Committee shall have the full authority and power to act for the Committee. Any member
of the Committee may be removed, with or without cause, by the Declarant. In the event any member of the
Committee should be so removed from the Committee or if any member of the Committee should die, resign,
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refuse to act, or become unable or ineligible to act, Declarant shall have the authority to designate a successor.
No member of the Committee or its designated representative(s), as herein defined, shall be entitled to any
compensation for services performed pursuant to this Article. The Committee may, however, employ one or
more architects, engineers, attorneys, or other consultants to assist the Committee in carrying out its duties
hereunder and the Association shall pay such consultants for such services as they render to the Committee. A
majority of the Committee may designate one or more representative (s) to act for it and such representative (s)
shall have the full right, authority, and power to carry out the functions of the Committee.
Section 2. Duties and Powers. The purpose of the Committee is to protect the environmental and
architectural integrity of the Subdivision in accordance with the provisions of these Restrictions. No building,
fence, wall, or other structure or improvement of any nature shall be placed, constructed, erected, or maintained
on any Lot, nor shall any exterior addition to or change or alteration therein be made until the construction plans
and specifications for the same shall have been submitted to and approved in writing by the Committee as to:
(a) conformity and harmony of external design and location in relation to surrounding structures and
topography, and (b) quality of workmanship and materials. Any plans and specifications to be submitted shall
specify, in such form as the Committee may reasonably require, the location upon the Lot where the
improvements are to be placed and the dimensions thereof as well as appropriate information concerning the
structural, mechanical, electrical, and plumbing details and the nature, kind, shape, height, color scheme, and
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material of the proposed improvements or alterations. The Committee shall also have the right, where not
io otherwise set forth herein, to specify:
@ Minimum setbacks;
(b) The location, height and extent of fences, walls, or other screening devices;
(c) The orientation of structures and landscaping on Lots with respect to streets, walks,
and structures on adjacent properties, however, the Committee shall not require setbacks further
away from the streets than any platted building line;
(d) A limited number of acceptable exterior materials and/or finishes that may be used in
the construction, alteration or repair of any improvement: and
(e) Approval of the construction of a residence upon two adjoining Lots, subject to such
conditions as deemed necessary and appropriate.
Further, no person exercising any prerogative of approval or disapproval by the Committee shall incur
any liability by reason of the good faith exercise thereof.
Section 3. Committee Approval. Any approval or disapproval by the Committee or its designated
representative (s) on any of the above matters shall be in writing and either conveyed in person or by registered
or certified mail, return receipt requested. In the event said Committee or its designated representative (s) fail to
approve or disapprove such design and location within forty-five (45) days after said plans“and specifications
have been submitted to it in writing in the form required, then such plans and specifications shall be deemed
approved. The Committee shall have the right, exercisable at its discretion, to grant variances to the
architectural restrictions in specific instances where the Committee in good faith deems that such variance does
not adversely affect the architectural and environmental integrity of the Subdivision or the common scheme of
the development. If the Committee shall approve a request for variance, the Committee may evidence such
approval, and grant its permission for such variance, only by written instrument, addressed. to the Owner of the
Lot(s) relative to which such variance has been requested, describing the applicable restrictive covenant(s) and
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the particular variance requested, expressing the decision of the Committee to permit the variance, describing
(when applicable) the conditions on which the variance has been approved and signed by a majority of the then
members of the Committee. If any such variances are granted, no violation of the provisions of this Declaration
shall be deemed to have occurred with respect to the matter for which the variance is granted; however, that the
granting of a variance shall not operate to waive any of the provisions of this Declaration for any purpose
except as to the particular property and particular provisions hereof covered by the variance, nor shall the
granting of any variance affect in any way the Owner's obligation to comply with all governmental laws and
regulations affecting the Lots and with the Plat. Failure by the Committee to respond within forty-five (45) days
to a request for a variance shall operate as a denial of the variance.
Section 4. Term. The duties and powers of the members of the Committee herein named, their
successors, assigns, and designated representative(s) shall cease on the earlier of twenty (20) years from the date
this Declaration of Covenants, Conditions and Restrictions is recorded in the Official Public Records of Real
Property of Harris County, Texas, or the date upon which all Lots subject to the jurisdiction of the Association
become Occupied Lots. Thereafter, the duties and powers of the Committee shall vest in the Board of Directors
of the Association or an Architectural Control Committee composed of three (3) or more representatives
appointed by the Board of Directors of the Association. The approval required in this Article and the duties and
® powers vested in the Committee and its successors shall continue so long as this Declaration of Covenants,
Conditions and Restrictions remains in force and effect. The then current members of the Committee may at any
time voluntarily; transfer all their duties and powers to the Board of Directors of the Association. To be
effective, such a transfer shall be evidenced by a document executed by each of the then current members of the
Committee.
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N Section 5. No Implied Waiver or Estoppel. No action or failure to act by the Committee or by the Board
of Directors shall constitute a waiver or estoppel with respect to future action by the Committee or Board of
Directors with respect to the construction of any improvements within the Subdivision. Specially, the approval
by the Committee or Board of Directors of any such residential construction shall not be deemed a waiver of
if any right or an estoppel to withhold approval or consent for any similar residential construction or any similar
proposals, plans, specifications, or other materials submitted with respect to any other residential construction
by such person or other Owner.
ARTICLE VII
EXTERIOR MAINTENANCE
Section 1. Obligation. All Living Units and other buildings located within the Subdivision must be kept
in good repair and must be painted when necessary to preserve their attractiveness. Grass, vegetation and weeds
on each Lot shall be cut as often as may be necessary to maintain the same in a neat and attractive condition. All
damaged, diseased beyond recovery, or dead trees shall be cut and removed from any Lot at the expense of the
Owner. Vacant Lots shall be mowed and maintained in good appearance by the Owner and shall not be used as
dumping grounds for rubbish, trash, rubble, or soil, except that Declarant or the Committee may designate fill
areas into which materials specified by Declarant or the Committee may be placed. The Association may plant,
install and maintain shrubbery and other screening devices around boxes, transformers and other above-ground
utility equipment. The Association shall have the right to enter upon the Lots to plant, install, maintain, and
replace such shrubbery or other screening devices. Owners of residences shall construct and maintain a fence or
other suitable enclosure to screen from public view the drying of clothes, yard equipment, and wood pile or
storage piles.
Section 2. Failure to Maintain. In the event any Owner of any Lot in the Subdivision fails to maintain
the Lot and the improvements situated thereon in a manner satisfactory to the Board of Directors of the
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Association, the Association, after seven (7) days notice to the Owner of said Lot, setting forth the action
intended to be taken by the Association and after approval by a two-thirds (2/3) vote of the Board of Directors,
shall have the right (but not the obligation), through its agents and
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2024-18401 / Court: 129 EXHIBIT B Restrictions as ~ rte nt \ a 01/27/04 300343660 $47.00 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FO) NEW FOREST, SECTION ONE THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: q COUNTY OF HARRIS § THAT this Declaration of Covenants, Conditions and Restrictions for New Forest, Section One \-_- (hereinafter referred to as the “Restrictions") is made on the date hereinafter set forth by NEW FOREST { PROPERTIES, L.P., a Texas limited partnership (hereinafter referred to as Declarant"); WITNESSETH: WHEREAS, Declarant is the owner of that certain real property known as New Forest, Section One (hereinafter referred to as the Property"), being a subdivision in Harris County, Texas, according to the map or plat (hereinafter referred to as "Plat") thereof recorded under Harris County Clerk’s File No. X171338 and Film Code No. 545208; and ” is WHEREAS, it is deemed to be in the best interests of Declarant and any other persons who may purchase property in New Forest, Section One, that there be established and maintained a uniform plan for the oh improvement and -development of the Property, as a highly restricted and modern subdivision of the highest quality; a N NOW, THEREFORE, Declarant hereby declares that the Property shall be held, sold and conveyed subject to the following easements, restrictions, covenants, and conditions, all pf which are for the purpose of enhancing and protecting the value, desirability and attractiveness of said Property. These easements, % covenants, restrictions, and conditions shall run with said real property and be binding upon all parties having or la acquiring any right, title or interest in a Lot, as hereinafter defined, their heirs, successors and assigns, and shall inure to the benefit of each owner thereof. ARTICLE I DEFINITIONS The following words, when used in this Declaration of Covenants, Conditions and Restrictions, shall have the following meanings: Section 1. "Association" shall mean and refer to New Forest Homeowners Association, a Texas non-profit corporation, its successors and assigns. Section 2. “Common Area" shall mean and refer to that property owned or.to be acquired by the Association and shall include, but is not limited to Restricted Reserves B, C, D, E, F, G, H, and I of New Forest, Section One, such reserves being restricted to landscape open space, storm water détention areas and utility easements on the Plat and as such areas that Declarant annexes pursuant to the provisions hereof as Common Area. Section 3. "Declarant" shall mean and refer to New Forest Properties, L.P., its successors and assigns, provided such successors and assigns (i) acquire more than one Lot in the Subdivision for purposes of development or resale and (ii) are designated as the Declarant by an instrument in writing executed by Declarant, and filed of record in the Official Public Records of Real Property of Harris County, Texas. Rorte Section 4, "Lot" shall mean and refer to any of the numbered lots shown on the Plat or any replat thereof. Section 5. “Living Unit" shall mean and refer to any improvements on a Lot which are designed and intended for occupancy and use as a residence by one person, by a single family, or by persons living together as a single housekeeping unit, provided, however, the term “Living Unit" shall not include a garage constructed on the Lot which is detached from the other improvements on the Lot. Section 6. "Occupied Lot" shall mean and refer to any Lot on which there is a Living Unit in which one or more persons are residing. Section 7. "Member" shall mean and refer to every person or entity that holds a membership in the Association. Section 8. "Owner" shall mean and refer to the record owner, whether one or more persons or entities, of fee simple title to any Lot which is a part of the Subdivision, but excluding those having such interest merely as * security for the performance of an obligation. However, the term "Owner" shall include any mortgagee or lien ie holder who acquires fee simple title to any Lot through judicial or nonjudicial foreclosure. Section 9.-"Subdivision" shall mean and refer to that certain real property within the perimeters of the legal description of New Forest, Section One, a subdivision in Harris County, Texas, as set forth on the Plat i thereof recorded under Harris County Clerk’s File No. X171338 and Film Code No. 545208 and any other N annexed property pursuant to Article XII hereof. As used in this Declaration, the term "Subdivision" shall not over or include any of the Common Area. % ARTICLE I i PROPERTY RIGHTS Section 1. Owner's Easement of Access and Enjoyment. Every Owner shall have an easement of access and a right and easement of enjoyment in and to the Common Area and such easement shall be appurtenant to and shall pass with the title to every Lot, subject to the following provisions: (a) The right of the Association to charge a reasonable admission and other fees for the use of any recreational facilities situated on the Common Area; (b) The right of the Association as set forth in Article IV, Section 8, to suspend a Member's voting rights and right to use the recreational and other facilities owned or operated by the Association for any period during which any assessment against his Lot or any other sum due the Association by the Member remains unpaid; and for a period not to exceed sixty (60) days for any infraction of its published rules and regulations; and . (c) The right of the Association to dedicate or transfer all or any part of the Common Area to any public agency, authority or utility for such purpose and subject to such conditions as may be determined by the Association. Section 2. Delegation of Use. Any Owner may delegate in accordance with the Bylaws of the Association, his right or enjoyment to the Common Area and facilities to members of his family or his tenants who reside on the Lot owned by him. The Declarant, for each Lot owned within the Subdivision, hereby -2- doar ~. } covenants, and each Owner of any Lot, by acceptance of a Deed therefor, whether it shall be express in the Deed or the evidence of the conveyance, is deemed to covenant that any lease executed on a Lot shall be in writing and contain provisions binding any lessee thereunder to the terms of this Declaration and any rules and regulations published by the Association applicable to the Common Area and further providing that noncompliance with the terms of this Declaration and any rules and regulations published by the Association shall be a default thereunder. Section 3. Title to the Common Area. The Common Area shall be owned by the Association or its successors and assigns, it being agreed that this provision is necessary in order to preserve the rights of the Owners with respect to the operation and management of the Common Area. Notwithstanding the above, the Declarant reserves the right to grant, convey, dedicate or reserve easements over, on or under the Common Area for utility services as set forth in Article XI, Section 1 hereof. ARTICLE Il MEMBERSHIP AND VOTING RIGHTS Section 1. Organization. The Association has been organized as a nonprofit corporation under the laws if of the State of Texas. In addition to this Subdivision, it is anticipated that the Association shall also have jurisdiction over future property annexed pursuant to Article XII hereof. The principal purposes of the 8 Association are.the collection, expenditure and management of the maintenance funds, maintenance of the i Common Area, enforcement of the Restrictions, providing for the maintenance, preservation, and architectural control within the Subdivision, the general overall supervision of all of the affairs and well-being of the nd Subdivision and other subdivisions within its jurisdiction and the promotion of the health, safety and welfare of N the residents within the Subdivision and other subdivisions subsequently coming within its jurisdiction. Section 2. Membership. Every person or entity who is an Owner shall hold a membership in the % Association. The foregoing is not intended to include persons or entities that hold an interest in a Lot merely as 0 security for the performance of an obligation. Membership shall be appurtenant to and may not be separated from ownership of a Lot. Ownership of a Lot shall be the sole qualification for membership. Any mortgagee or lien holder who acquires title to any Lot which is a part of the Subdivision through judicial or nonjudicial foreclosure shall be a Member of the Association. Section 3. Board of Directors. The Association shall act through a Board of Directors who will manage the affairs of the Association as specified in the Bylaws of the Association. Section 4. Voting Rights. There shall be two classes of membership entitled to voting rights in the Association with respect to the Subdivision and they shall be as follows: (a) Class A: All Owners other than Declarant, shall be considered Class A Members, and for each Lot owned shall be entitled to one (1) vote on each matter coming before the Members at any meeting or otherwise, unless their voting rights have been suspended by the Board of Directors as hereinabove provided in Article II, Section 1(b). When a particular Lot ig owned by more than one individual or entity, all the individuals or entities holding an ownership interest in that Lot shall be considered Class A Members, however, for that particular Lot they shall be entitled to a total of no more than one vote on each matter coming before the Members at any meeting or otherwise. The vote for such Lot shall be exercised as they among themselves determine. ~3- 1 (b) Class B: Class B Members shall be the Declarant, and for each Lot owned it shall be entitled to three (3) votes on each matter coming before the Members at any meeting or otherwise. Once a Lot is sold to an individual or individuals who would be classified as Class A Members, the three (3) votes attached to that Lot shall be extinguished, subject to paragraph (c) below. All Class B memberships with respect to the Subdivision shall cease and be automatically converted into Class A Memberships on the happening of any of the following events, whichever occurs earlier: @) When the total number of votes entitled to be cast by the Class A Members with respect to the Subdivision at any meeting of the Members or otherwise; equals the total number of votes entitled to be cast by the Class B Members with respect to the Subdivision; (i) Ten (10) years from the date these Restrictions are filed with the County Clerk of Harris County, Texas, for recordation in the Official Public Records of Real Property of Harris County, Texas; or £ (iii) At such earlier time as the Class B Member, in its sole discretion, shall elect. m (c)- Reinstatement of Class _B Members. Notwithstanding the prior provisions of paragraph (b) above, if additional property is brought within the jurisdiction of the Association such that the Declarant owns more than 25% of all Lots under the jurisdiction of the Association, N then the provisions in the first sentence of paragraph (b) above shall be automatically reinstated ipso facto. vf ARTICLE IV COVENANT FOR MAINTENANCE ASSESSMENTS Section 1. Creation of the Lien and Personal Obligation for Assessments. The Declarant, for each Lot within the Subdivision which is or becomes subject to the assessments hereinafter provided for, hereby covenants, and each Owner of any Lot that is or becomes assessable, by acceptance of a deed therefore, whether or not it shall be express in the deed or other evidence of the conveyance, is deemed to covenant and agree to pay the Association the following: (a) Annual assessments or charges; (b) Special assessments for capital improvements; and (c) Any other sums to the extent they are specifically provided for elsewhere in this instrument. . Such assessments or charges are to be fixed, established and collected as hereinafter provided. These charges and assessments, together with such interest thereon and cost of collection thereof, as hereinafter provided, shall be a charge on the land and shall be secured by a continuing lien upon the Lot against which such assessments or charges are made. Each such assessment or charge, together with such interest, costs of collection and reasonable attorney's fees shall also be and remain the personal obligation of the Owner of the particular Lot at the time the assessment or charge becomes due notwithstanding any subsequent transfer of title to such Lot. The -4- ot s. \ personal obligation for delinquent assessments and charges shall not pass to successors in title unless expressly assumed by them. Section 2. Purposes of Assessments. The assessments levied by the Association shall be used exclusively for the purpose of promoting the recreation, health, safety, and welfare of the residents of the Subdivision. Without limiting the foregoing, the total assessments accumulated by the Association, insofar as the same may be sufficient, shall be applied toward the payment of all taxes, insurance premiums and repair, maintenance and acquisition expenses incurred by the Association and at the option of the Board of Directors of the Association for any or all of the following purposes: lighting, sidewalks, paths, parks, parkways, and esplanades in the Subdivision and in other subdivisions that may come within its jurisdiction; collecting and disposing of garbage, ashes, rubbish, and materials of a similar nature; payment of legal and all other expenses incurred in connection with the collection, enforcement and administration of all assessments and charges and in connection with the enforcement of this Declaration of Covenants, Conditions and Restrictions; providing for the planting and upkeep of landscaping on esplanades and in the Common Area; acquiring and maintaining any amenities or recreational facilities located upon the Common Areas; and doing any other thing necessary or desirable in the opinion of the Board of Directors of the Association to keep and maintain the property in the Subdivision and in other subdivisions that may come within its jurisdiction in neat and good order or which they Ne consider of general benefit to the Owners or occupants of the Subdivision and in other subdivisions that may tw come within its jurisdiction, including the establishment and maintenance of a reserve for repair, maintenance, taxes, insurance,; and other charges as specified herein. The judgment of the Board of Directors of the tt Association in establishing annual assessments, special assessments and other charges and in the expenditure of said funds shall be final and conclusive so long as said judgment is exercised in good faith ¥ N Section 3. Basis and Maximum Level of Assessment. Until January 1 of the year immediately following the conveyance of the first Lot from Declarant to an Owner, the maximum annual assessment shal! be $400.00 per Lot. Such assessments shall be prorated if the first year is a partial year. From and after the first day of % January of the year immediately following the date of commencement of the first annual assessment, the ii maximum annual assessment may be increased by the Board of Directors of the Association, effective the first day of January of each year, in conformance with the rise, if any, in the Consumer Price Index for Urban Wage Earners_and Clerical Workers published by the Department of Labor, Washington, D.C., or any successor publication, for the preceding month of July or alternatively, by an amount equal to a ten percent (10%) increase over the prior year’s assessment, whichever is greater, without a vote of the Members of the Association. The maximum annual assessment may be increased above that established by the Consumer Price Index formula or the above-mentioned percentage increase only by approval of two-thirds (2/3) of each class of members in the Association present and voting as separate classes at a meeting duly called for this purpose. This increase shall become effective on the date specified in the document evidencing such approval only after such document has been filed for record in the office of the County Clerk of Harris County, Texas. After consideration of current maintenance costs and future needs of the Association, the Board of Directors may fix the annual assessment at an amount not in excess of the maximum amount approved by the Members. Anything to the contrary notwithstanding, the maximum annual assessment shall be chargeable and payable as follows: (a) Occupied Lots: Those Lots containing an occupied Living Unit (that is, a Living Unit that has been initially occupied, although it may no longer be occupied) shall be assessed the full assessments as set by the Board of Directors of the Association; (b) Completed Living Unit: Those Lots containing a substantially completed but unoccupied Living Unit (that is, a Living Unit that has not been initially occupied), shall be -5- toe -) assessed fifty percent (50%) of the full assessments asset by the Board of Directors of the Association; and (c) Vacant Lots: Those Lots which are vacant or upon which a residence is under construction shall be assessed at a rate equal to fifty percent (50%) of the full assessments as set by the Board of Directors of the Association. If such Owner fails to maintain said Lot in accordance with the requirements set forth in this Declaration, the Association is hereby authorized to do so and any expense the Association incurs thereby shall become a lien on the Lot and the general personal obligation of said Owner. Section 4. Community Enhancement Fee. In addition to the regular annual assessment, as a condition to the sale of every Lot, every purchaser and seller, (other than the Declarant), shall be assessed a community enhancement fee of $100.00 per Lot that shall be paid by the seller and by the purchaser at every closing for a total of $200.00 per Lot per closing (the “Community Enhancement Fee”). The Community Enhancement Fee shall be for the sole benefit of the Association. Upon the fifth anniversary of the recording of this Declaration, the Community Enhancement Fee that will be payable at every closing by every purchaser and seller (other than Declarant), shall be the greater of $100.00 per Lot or .15% of the sales price of the Lot (including improvements). By way of example, if the Lot sells for $100,000.00 prior to the fifth anniversary, the he Community Enhancement Fee that will be paid by the seller and purchaser at closing shall be $100.00 by each 9 party. m Section 5, Special Assessments for Capital Improvements. In addition to the annual assessments and ” Community Enhancement Fee authorized above, the Board of Directors of the Association may levy, in any N assessment year, a special assessment applicable to that 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, including fixtures and personal property related thereto, provided that any such assessment shall have the vote or written assent of two-thirds (2/3) of each class of Members present and voting at a meeting called in accordance with Section 6 below.. Section 6. Notice and Quorum Any Action Authorized Under Sections 3 and 5. Written notice of any meeting called for the purpose of taking any action authorized under Section 3 or 5 which requires a vote of the Members shall be sent to all Members not less than 15 days or more than 60 days in advance of such meeting. At the first such meeting called, the presence of Members or of proxies entitled to cast two-thirds (2/3) of all the votes of each class of membership shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirements, and the required quorum at the subsequent meeting shall be one-half (1/2) of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than 60 days following the preceding meeting. Section 7. Date of Commencement and Determination of Annual Assessment. The annual assessment provided for herein shall commence as to all Lots on a date fixed by the Board. of Directors of the Association. The first assessments shall be adjusted according to the number of months remaining in the calendar year. On or before the 30th day of November in each year, the Board of Directors of the Association shall fix the amount of the annual assessments to be levied against each Lot in the next calendar year. Written notice of the figure at which the Board of Directors of the Association has set the annual assessments shall be sent to every Owner whose Lot is subject to the payment thereof. However, the failure by the Board of Directors of the Association to fix an annual assessment for any year will not be deemed a waiver with respect to any of the provisions of this Declaration or a release of liability of any Owner to pay assessments, or any installments thereof, for that or any subsequent year. In the event of such failure, annually each Owner shall pay the same amount as the annual assessments established for the previous year until the new annual assessments are established. When the new -6- = . } assessments are established by the Board of Directors of the Association, they shall be applied retroactively to the commencement of the then current assessment year and the deficit shall be paid by each Owner within thirty (30) days after receipt of a statement therefor. Assessments shall be due and payable yearly in advance on the first day of January or as directed by the Board of Directors of the Association. The Association shall, upon demand, and for reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid. A properly executed certificate of the Association as to the status of assessments on a particular Lot is binding upon the Association as of the date of its issuance. Section 8. Effect of Non-Payment of Assessments; Remedies of the Association. Any assessments or charges which are not paid when due shall be delinquent. If an assessment or charge is not paid within thirty (30) days after the due date, it shall bear interest from the due date at the lesser of (i) eighteen percent (18%) per annum or (ii) the maximum rate permitted by law, and the Association may bring an action at law against the Owner personally obligated to pay the same, or foreclose the lien herein retained against the Lot. Interest, costs of collection and reasonable attorneys’ fees incurred in any such action shall be added to the amount of such assessment or charge. In order to secure the payment of the assessments or charges hereby levied, a vendor's lien for the benefit of the Association shall be and is hereby reserved in the Deed from the Declarant to the purchaser of each Lot or portion thereof, which lien shall be enforceable through appropriate judicial and ph nonjudicial proceedings by the Association. As additional security for payment of the assessments and charges hereby levied, each Owner of a Lot in the Subdivision, by such party's acceptance of a deed thereto, hereby grants the Association a lien on such Lot which may be foreclosed on by nonjudicial foreclosure and pursuant to the provisions of Section 51.002 of the Texas Property Code (and any successor statute); and each such Owner hereby expressly grants the Association a power of sale in connection therewith. The Association shall, whenever it proceeds with nonjudicial foreclosure pursuant to the provisions of said Section 51.002 of the N Texas Property Code and said power of sale, designate in writing a Trustee to post or cause to be posted all required notices of such foreclosure sale and to conduct such foreclosure sale. The Trustee may be changed at any time and from time to time by the Association by means of a written instrument executed by the President ® or any Vice President of the Association and filed for record in the Real Property Records of Harris County, Texas. In the event that the Association has determined to nonjudicially foreclose the lien provided herein pursuant to the provisions of said Section 51.002 of the Texas Property Code and to exercise the power of sale hereby granted, the Association shall mail to the defaulting Owner a copy of the Notice of Trustee's Sale not less than twenty-one (21) days prior to the date on which sale is scheduled by posting such notice through the US. Postal Service, postage prepaid, registered or certified, return receipt requested, properly addressed to such Owner at the last known address of such Owner according to the records of the Association. If required by law, the Association or Trustee shall also cause a copy of the Notice of Trustee's Sale to be recorded in the Real Property Records of Harris County, Texas. Out of the proceeds of such sale, there shall first be paid all expenses incurred by the Association in connection with such default, including reasonable attomey's fees and a reasonable trustee's fee; second, from such proceeds there shall be paid to the Association an amount equal to the amount of default; third, there shall be paid any amounts required by law to be paid before payment to the Owner; and, fourth, the remaining balance shall be paid to such Owner. Following any such foreclosure, each occupant of any such Lot foreclosed on and each occupant of any improvements thereon shall be deemed to be a tenant at sufferance and may be removed from possession by any and all lawful means, including a judgment for possession in an action of forcible detainer and the issuance of a writ of restitution thereunder. In addition to foreclosing the lien hereby retained, in the event of nonpayment by any Owner of such Owner's portion of any assessment or charge, the Association may, acting through the Board, upon ten (10) days prior written notice thereof to such nonpaying Owner, in addition to all other rights and remedies available at law or otherwise, restrict the rights of such nonpaying Owner to use the Common Areas, if any, in such manner as the Association deems fit or suspend the voting rights of such nonpaying Owner so long as such default exists. -7- + It is the intent of the provisions of this Section 7 to comply with the provisions of said Section 51.002 of the Texas Property Code relating to nonjudicial sales by power of sale and, in the event of the amendment of said Section 51.002 of the Texas Property Code hereafter, the President or any Vice President of the Association, acting without joinder of any other Owner or mortgagee or other person may, by amendment to this Declaration filed in the Real Property Records of Harris County, Texas, amend the provisions hereof so as to comply with said amendments to Section 51.002 of the Texas Property Code. No Owner may waive or otherwise escape liability for the assessments provided for herein by nonuse of the Common Area or abandonment of such Owner’s Lot. In addition to the above rights, the Association shall have the right to refuse to provide the services of the Association to any Owner who is delinquent in the payment of the charges or assessments. Section 9. Subordination of the Lien to Mortgages The lien created in this Article IV shall be subordinate to valid purchase money liens or mortgages and any valid lien securing the cost of construction of home improvements. Sale or transfer of any Lot shall not affect said lien; however, the sale or transfer of any Lot which is subject to any valid first purchase money lien or mortgage or valid lien securing the construction of improvements pursuant to a judicial or nonjudicial foreclosure under such lien or mortgage or any conveyance in satisfaction of such debt (commonly called a "deed in lieu of foreclosure") shall extinguish the lien securing such assessment or charge only as to payments which became due prior to such sale or transfer and additionally shall not cause a merger of such lien with the title conveyed in satisfaction of such debt. No sale or transfer shall relieve such Lot or the Owner thereof from liability from any charges or assessments thereafter becoming due or from the lien thereof. In addition to the automatic subordination provided N hereinabove, the Association, in the discretion of its Board of Directors, may subordinate the lien securing any assessment provided for herein to any other mortgage, lien or encumbrance, subject to such limitations, if any, as such Board may determine. Section 10. Exempt Property. All properties dedicated to, and accepted by, a local public authority and all properties owned by a charitable or nonprofit organization exempt from taxation by the laws of the State of Texas shall be exempt from the assessments and charges created herein. Notwithstanding the foregoing, no Lot which is used as a residence shall be exempt from said assessments and charges. Section 11. Compliance with Texas Residential Property Owners Protection Act. Notwithstanding anything contained in these Restrictions to the contrary, it is the desire and intention of Declarant that the provisions of the Texas Residential Property Owners Protection Act, Sections 209.001 — 209.011 of the Texas Property Code (“TRPOA”), as it may be amended from time to time, shall be complied with at all times. If any provision of these Restrictions is in violation of or in conflict with the TRPOA then such provision shall be construed in such a manner as to be consistent with the TRPOA and shall no be held to invalidate any other provision of these Restrictions. ARTICLE V INSURANCE The Association, through the Board of Directors or its duly authorized agent, shall have the authority to obtain the following types of insurance policies: (a) Property insurance covering the Common Area and all improvements thereon in an amount equal to the full replacement value of the improvements and facilities located upon the Common Area and owned by the Association (including all building service equipment and the -8- ~ \\ like) with an “agreed amount endorsement" or its equivalent, a "demolition endorsement" or its equivalent and, if necessary an “increased cost of construction endorsement" or "contingent liability from operation of building laws endorsement" or the equivalent, affording protection against loss or damage by fire and other hazards covered by the standard extended coverage endorsement in Texas, and by sprinkler leakage, debris removal, cost of- demolition, vandalism, malicious mischief, windstorm, and water damage, and any such other risk as shall customarily be covered with respect to projects similar in construction, location and use; (b) A comprehensive policy of public liability insurance covering all of the Common Area and insuring the Association, within such limits as it may consider acceptable (for all claims for personal injury and/or property damage arising out of a single occurrence); such coverage to include protection against water damage liability, liability for non-owned and hired automobiles, liability for property of others, and any other coverage the Association deems prudent and which is customarily carried with respect to projects similar in construction, location and use; and (c) A policy of fidelity coverage to protect against dishonest acts on the part of officers, A directors, trustees, and employees of the Association and all others who handle, or are 2 responsible for handling funds of the Association; such fidelity bonds shall be of the kind and in § an amount the Association deems necessary for the protection of the Owners. mH . Premiums for all such insurance policies carried by the Association shall be a common expense payable from ‘el the annual assessments on all of the Lots. Liability and property insurance for Lots and the contents of residences shall be the responsibility of each Owner. All proceeds from policies held by the Association shall be deposited in a bank or other financial institution, the accounts of which bank or institution are insured by a fd federal governmental agency, with the provision agreed to by said bank or institution that such funds may be g withdrawn only by signature of at least two (2) of the members of the Board of Directors, or other signatories if duly authorized by the Board of Directors. In no event shall the insurance company or the bank or other financial institution holding proceeds of a policy issued in the name of the Association be authorized to distribute any proceeds therefrom to the Declarant. Proceeds from such policies shall be used by the Association only for the benefit of its Members and where such proceeds arise out of an occurrence in which a building or improvement owned by the Association is damaged or destroyed, they shall be used to repair, restore and rebuild such building or improvements if the Board of Directors so determines. In the latter event, the Board of Directors shall advertise for sealed bids from licensed contractors, and upon acceptance of a bid received thereby, may negotiate with the contractor, who shall be required to provide a full performance and payment bond for the repair, reconstruction or rebuilding of such destroyed improvements or buildings. In the event the insurance proceeds are insufficient to pay all costs of repairing and/or rebuilding said improvements to their original condition, the Association may levy a special assessment for capital improvements against all Owners to make up the deficiency. This shall be done only after compliance with all the requirements for imposition of special assessments. ~ . ARTICLE VI ARCHITECTURAL CONTROL Section 1. Architectural Control Committee. There is hereby created an Architectural Control Committee (herein referred to as the "Committee") which will be comprised of three (3) members. Any two (2) of the members of the Committee shall have the full authority and power to act for the Committee. Any member of the Committee may be removed, with or without cause, by the Declarant. In the event any member of the Committee should be so removed from the Committee or if any member of the Committee should die, resign, -9- an, /) refuse to act, or become unable or ineligible to act, Declarant shall have the authority to designate a successor. No member of the Committee or its designated representative(s), as herein defined, shall be entitled to any compensation for services performed pursuant to this Article. The Committee may, however, employ one or more architects, engineers, attorneys, or other consultants to assist the Committee in carrying out its duties hereunder and the Association shall pay such consultants for such services as they render to the Committee. A majority of the Committee may designate one or more representative (s) to act for it and such representative (s) shall have the full right, authority, and power to carry out the functions of the Committee. Section 2. Duties and Powers. The purpose of the Committee is to protect the environmental and architectural integrity of the Subdivision in accordance with the provisions of these Restrictions. No building, fence, wall, or other structure or improvement of any nature shall be placed, constructed, erected, or maintained on any Lot, nor shall any exterior addition to or change or alteration therein be made until the construction plans and specifications for the same shall have been submitted to and approved in writing by the Committee as to: (a) conformity and harmony of external design and location in relation to surrounding structures and topography, and (b) quality of workmanship and materials. Any plans and specifications to be submitted shall specify, in such form as the Committee may reasonably require, the location upon the Lot where the improvements are to be placed and the dimensions thereof as well as appropriate information concerning the structural, mechanical, electrical, and plumbing details and the nature, kind, shape, height, color scheme, and N material of the proposed improvements or alterations. The Committee shall also have the right, where not io otherwise set forth herein, to specify: @ Minimum setbacks; (b) The location, height and extent of fences, walls, or other screening devices; (c) The orientation of structures and landscaping on Lots with respect to streets, walks, and structures on adjacent properties, however, the Committee shall not require setbacks further away from the streets than any platted building line; (d) A limited number of acceptable exterior materials and/or finishes that may be used in the construction, alteration or repair of any improvement: and (e) Approval of the construction of a residence upon two adjoining Lots, subject to such conditions as deemed necessary and appropriate. Further, no person exercising any prerogative of approval or disapproval by the Committee shall incur any liability by reason of the good faith exercise thereof. Section 3. Committee Approval. Any approval or disapproval by the Committee or its designated representative (s) on any of the above matters shall be in writing and either conveyed in person or by registered or certified mail, return receipt requested. In the event said Committee or its designated representative (s) fail to approve or disapprove such design and location within forty-five (45) days after said plans“and specifications have been submitted to it in writing in the form required, then such plans and specifications shall be deemed approved. The Committee shall have the right, exercisable at its discretion, to grant variances to the architectural restrictions in specific instances where the Committee in good faith deems that such variance does not adversely affect the architectural and environmental integrity of the Subdivision or the common scheme of the development. If the Committee shall approve a request for variance, the Committee may evidence such approval, and grant its permission for such variance, only by written instrument, addressed. to the Owner of the Lot(s) relative to which such variance has been requested, describing the applicable restrictive covenant(s) and -10- 5 ) the particular variance requested, expressing the decision of the Committee to permit the variance, describing (when applicable) the conditions on which the variance has been approved and signed by a majority of the then members of the Committee. If any such variances are granted, no violation of the provisions of this Declaration shall be deemed to have occurred with respect to the matter for which the variance is granted; however, that the granting of a variance shall not operate to waive any of the provisions of this Declaration for any purpose except as to the particular property and particular provisions hereof covered by the variance, nor shall the granting of any variance affect in any way the Owner's obligation to comply with all governmental laws and regulations affecting the Lots and with the Plat. Failure by the Committee to respond within forty-five (45) days to a request for a variance shall operate as a denial of the variance. Section 4. Term. The duties and powers of the members of the Committee herein named, their successors, assigns, and designated representative(s) shall cease on the earlier of twenty (20) years from the date this Declaration of Covenants, Conditions and Restrictions is recorded in the Official Public Records of Real Property of Harris County, Texas, or the date upon which all Lots subject to the jurisdiction of the Association become Occupied Lots. Thereafter, the duties and powers of the Committee shall vest in the Board of Directors of the Association or an Architectural Control Committee composed of three (3) or more representatives appointed by the Board of Directors of the Association. The approval required in this Article and the duties and ® powers vested in the Committee and its successors shall continue so long as this Declaration of Covenants, Conditions and Restrictions remains in force and effect. The then current members of the Committee may at any time voluntarily; transfer all their duties and powers to the Board of Directors of the Association. To be effective, such a transfer shall be evidenced by a document executed by each of the then current members of the Committee. ed N Section 5. No Implied Waiver or Estoppel. No action or failure to act by the Committee or by the Board of Directors shall constitute a waiver or estoppel with respect to future action by the Committee or Board of Directors with respect to the construction of any improvements within the Subdivision. Specially, the approval by the Committee or Board of Directors of any such residential construction shall not be deemed a waiver of if any right or an estoppel to withhold approval or consent for any similar residential construction or any similar proposals, plans, specifications, or other materials submitted with respect to any other residential construction by such person or other Owner. ARTICLE VII EXTERIOR MAINTENANCE Section 1. Obligation. All Living Units and other buildings located within the Subdivision must be kept in good repair and must be painted when necessary to preserve their attractiveness. Grass, vegetation and weeds on each Lot shall be cut as often as may be necessary to maintain the same in a neat and attractive condition. All damaged, diseased beyond recovery, or dead trees shall be cut and removed from any Lot at the expense of the Owner. Vacant Lots shall be mowed and maintained in good appearance by the Owner and shall not be used as dumping grounds for rubbish, trash, rubble, or soil, except that Declarant or the Committee may designate fill areas into which materials specified by Declarant or the Committee may be placed. The Association may plant, install and maintain shrubbery and other screening devices around boxes, transformers and other above-ground utility equipment. The Association shall have the right to enter upon the Lots to plant, install, maintain, and replace such shrubbery or other screening devices. Owners of residences shall construct and maintain a fence or other suitable enclosure to screen from public view the drying of clothes, yard equipment, and wood pile or storage piles. Section 2. Failure to Maintain. In the event any Owner of any Lot in the Subdivision fails to maintain the Lot and the improvements situated thereon in a manner satisfactory to the Board of Directors of the -li- os ) Association, the Association, after seven (7) days notice to the Owner of said Lot, setting forth the action intended to be taken by the Association and after approval by a two-thirds (2/3) vote of the Board of Directors, shall have the right (but not the obligation), through its agents and