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Home My WebLink About2023-09-22 Broyles, Jacob - 903Gloria Sanchez From: Claudia Bray <cbray@carlwarren.com> Sent: Monday, March 25, 2024 11:33 AM To: Richards, Edwin J. Cc: Chris Kustra; Gloria Sanchez; Reyes, Margo A.; Paul Zeglovitch (pzeglovitch@cjpia.org); Tim Varon Subject: Broyles v. City of Palm Desert CJP-3049828 Below you will find the most recent diary review on this claim. DIARY REVIEW Event: The Claimant contends that the City is responsible for an inverse condemnation claim for having the storm drain system fail and for failing to return power to the loss location, along with failing to provide permits in the restoration of his property. Per claimant at least 37 homes were in 3 feet of water. Statute of Limitations: 08/28/2024 as claim was rejected on 2/28/2024 Action plan items from last review and status: 1. Determine who owns, maintains, and controls the drainage system. It has been confirmed that the drainage system that services The Spanish Walk Community is privately owned by the condo association. 2. Determine what was the cause of the backup. Hurricane Hillary with excessive amounts of rain. 3. Determine how much rainfall, winds, etc was experienced by the city. This incident occurred during Hurricane Hillary. The city experienced a 200-year storm event, act of God. There are no standards that require a drainage system to be designated for any event greater than 100-year event. 4. Determine if area flooding occurs during normal conditions. This is pending as fact development is under way with defense counsel. 5. Secure inspection and maintenance records for the drainage system. This no longer applies as the drainage system in the Spanish Walk Community is privately owned. 6. When city staff were called out to the location, what did they do and what happened? This is pending as fact development is under way with defense counsel. 7. Did the homeowner take protective measures, ie sandbags? This is pending as fact development is under way with defense counsel. 8. Assign defense counsel in anticipation of further claims/lawsuits related to flooding in the neighborhood. This will continue to be my plan. 9. Finalize liability. This will continue to be my plan. Coverage: This type of claim would be covered under the MOC Liability Review: Appears favorable. This is a claim stage referral to defense counsel, no lawsuit as of yet, and only one of several property owners has filed a claim. The city has confirmed that the drainage system that services the Spanish Walk Community is privately owned by the condo association. Therefore, if the cause of the flooding was related to that privately owned drainage system, then liability is doubtful to the city of Palm Desert. The flood i caused by this Tropical Storm Hillary was city-wide and not limited to the Spanish Walk Community. There is one issue that was identified that is of concern. Some documents suggest that the flooding may have been caused by a "major drainage channel" located outside of the Spanish Walk community that "topped its berm and flooded the Spanish Walk Community". After the flood event a new temporary berm structure was built northwest of the community. There is no indication whether that major drainage channel is a public facility owned and maintained by the city, a county, or privately owned. We will need to investigate this further to see if any liability could be a possibility against the city. the claim also alleges that the city was slow in restoring electrical power after the storm, the city denies any delay in restoring power. The claim also alleges the city negligently delayed in approving the building permit applications needed for him to repair his condo, the city is immune from liability based on conduct related to the issuance or denial of permits. The city's strongest defense will be that the storm was rated a 200-year event and there are no standards that require a drainage system to be designed for any event greater than 100-year event, act of God. We will proceed with rejection of the claim. Damages Review — Flood damage to property and loss of rental income for over a month of rental. Submitted Medical Bills: NA Considered: NA Residuals: NA Loss of Earnings Alleged: NA Reserve Review: $25,000-adequate based on current info. Updated Action Plan: 1. Continue to work with defense counsel and monitor the rejection notice. 2. Any new claims that come in will also be referred to defense counsel. 3. Secure initial Pre -litigation budget from defense counsel. Subrogation Referral: NA Claudia Bray Sr Claims Examiner cbray@carlwarren.com Tel: (657) 622-4216 1 Fax: (866) 254-4423 CARL WARREN & COMPANY A VENBROOK COMPANY Carl Warren & Company, LLC CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, 2 proprietary, non-public and/or privileged. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this email in error, please delete it from your system and advise the sender immediately. Please be advised that we are unable to bind, endorse or amend coverage via voicemail, email, or facsimile until confirmed in writing by an authorized representative of this office. We accept no liability for any damage caused by any virus transmitted by this email. It is your responsibility to check this email (including any attachments) for viruses. 3 Gloria Sanchez From: Claudia Bray <cbray@carlwarren.com> Sent: Thursday, February 29, 2024 7:22 AM To: Gloria Sanchez Subject: RE: Broyles v City of Palm Desert (3049828)- Status Report 6Feb2024 based on City's Responses to Questionnaire and Documents (Power Point, Memo, CC&Rs) Attachments: We sent you safe versions of your files; 20240228143244757.pdf Mimecast Attachment Protection has deemed this file to be safe, but always exercise caution when opening files. Gloria, Attached is the rejection notice. Best regards. Claudia Bray Sr Claims Examiner cbray@carlwarren.com Tel: (657) 622-4216 I Fax: (866) 254-4423 Carl Warren & Company LLC I A Venbrook Company CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, proprietary, non-public and/or privileged. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this email in error, please delete it from your system and advise the sender immediately. Please be advised that we are unable to bind, endorse or amend coverage via voicemail, email, or facsimile until confirmed in writing by an authorized representative of this office. We accept no liability for any damage caused by any virus transmitted by this email. It is your responsibility to check this email (including any attachments) for viruses. From: Gloria Sanchez <gsanchez@palmdesert.gov> Sent: Wednesday, February 7, 2024 5:48 PM To: Claudia Bray <cbray@carlwarren.com> Subject: RE: Broyles v City of Palm Desert (3049828)- Status Report 6Feb2024 based on City's Responses to Questionnaire and Documents (Power Point, Memo, CC&Rs) 1 Received and thank you. Will keep my eye out for the rejection notice. M. Gloria Sanchez Records Coordinator City of Palm Desert 73510 Fred Waring Drive, Palm Desert, CA 92260 gsanchez@palmdesert.gov 760.776.6354 1 www.palmdesert.gov O/ h1449,•!Iju..Iuu....i 614 Contribute to Our New 4020 Community Mural! 44, ip From: Claudia Bray <cbray@carlwarren.com> Sent: Wednesday, February 7, 2024 1:10 PM To: Reyes, Margo A. <margo.reves@kutakrock.com> Cc: Gloria Sanchez <gsanchez@palmdesert.gov>; Grochow, Kevin J. <Kevin.Grochow@KutakRock.com>; Richards, Edwin J. <Ed.Richards@kutakrock.com> Subject: RE: Broyles v City of Palm Desert (3049828)- Status Report 6Feb2024 based on City's Responses to Questionnaire and Documents (Power Point, Memo, CC&Rs) Hello Ed, I have read through your status report and would recommend moving forward with the rejection of the claim to cut the statute and I do understand that this statute would only apply to causes of action other than for inverse condemnation. Carl Warren normally sends out the rejection notice for the city of Palm Desert, so I will go ahead and send out the rejection notice by the end of the week. Claudia Bray Sr Claims Examiner cbray@carlwarren.com Tel: (657) 622-4216 1 Fax: (866) 254-4423 CARL WARREN & COMPANY A VENBROOK COMPANY 2 Carl Warren & Company, LLC CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, proprietary, non-public and/or privileged. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this email in error, please delete it from your system and advise the sender immediately. Please be advised that we are unable to bind, endorse or amend coverage via voicemail, email, or facsimile until confirmed in writing by an authorized representative of this office. We accept no liability for any damage caused by any virus transmitted by this email. It is your responsibility to check this email (including any attachments) for viruses. From: Reyes, Margo A. <margo.reyes@kutakrock.com> Sent: Tuesday, February 6, 2024 8:08 AM To: Claudia Bray <cbray@carlwarren.com> Cc: Paul Zeglovitch (pzeglovitch@cipia.org) <pzeglovitch@cipia.org>; gsanchez@palmdesert.gov; Grochow, Kevin J. <Kevin.Grochow@KutakRock.com>; Richards, Edwin J. <Ed.Richards@kutakrock.com> Subject: Broyles v City of Palm Desert (3049828)- Status Report 6Feb2024 based on City's Responses to Questionnaire and Documents (Power Point, Memo, CC&Rs) Re: Broyles v City of Palm Desert (3049828) Ms. Bray, Please see the attached regarding the above matter, sent on behalf of Ed Richards, Esq. Thank you. Margo A. Reyes I Legal Assistant KUTAKROCK margo.reyes@kutakrock.com www.KutakRock.com 5 Park Plaza, Suite 1500, Irvine, CA 92614 D: 949.417.0994 1 0: 949.417.0999 I F: 949.417.5394 Authorized E-Service Address: irvineintake@kutakrock.com This E-mail message is confidential, is intended only for the named recipients above and may contain information that is privileged, attorney work product or otherwise protected by applicable law. If you have received this message in error, please notify the sender at 402-346-6000 and delete this E-mail 3 message. Thank you. 4 CARL WARDEN & COMPANY Claims M8Plagemenk and Solutions A I VENBROOK Company February 12, 2024 Jacob Broyles 255 Calle Siempre Palm Desert, CA 92211 CLAIM REJECTION NOTICE RE: Claimant: Jacob Broyles Member: City of Palm Desert Date of Event: 08/20/2023 CW File Number: 3049828 CBV Carl Warren & Company is the claims management company for the City of Palm Desert. Notice is hereby given that the claim which you presented to the City on 09/22/2023 was rejected on 02/12/2024, The City of Palm Desert does not own nor maintain the drainage system in the Spanish Walk Community, The drainage system is privately owned by the condominium association. WARNING Subject to certain exceptions, you have only six (6) months from the date this notice was personally delivered or deposited in the United States mail to file a court action on this claim. (See Government Code Section 945,6) The six-month time for filing such a court action is neither enlarged nor extended by the provisions of CCP Section 335.1. This time limitation applies only to causes of action arising under California law for which a claim is mandated by the California Government Tort Claims Act. Government Cade Sections 900 et. seq.. Other causes of action, including those arising under federal law, may have different tirne limitations for filing. You may see the advice of an attorney of your choice in connection with this matter. If you desire to consult an attorney, you should do so immediately. Very Truly Yours, Cfa.a, 6vj Claudia Bray Sr. Claims Examiner! Carl Warren & Company, LLC j A Veribrook Company PC} Box 2411, Tustin, CA 92781 T:657-622-4200 I F:866-254-4423 1 v vw.carlwarren.com CA License #t2607296 PROOF OF SERVICE I, the undersigned, declare as follows: I am employed in the County of Orange, State of California. I am over the age of 18 years, and not a party to the within action. I am an employee of or agent for CARL WARREN & COMPANY whose business address is P.O. Box 2411, Tustin, California. On February 28, 2024 , I served the foregoing document(s): Claim Rejection Notice, to the following party(ies) in this action addressed as follows: PLEASE SEE ATTACHED SERVICE LIST • (BY MAIL) I caused a true copy of each document, placed in a sealed envelope with postage fully paid, to be placed in the United States mail at Anaheim, California. I am "readily familiar" with this firm's business practice for collection and processing of mail, that in the ordinary course of business said document(s) would be deposited with the U.S. Postal Service on that same day. I understand that the service shall be presumed invalid if the postal cancellation date or postage meter date on the envelope is more than one day after the date of deposit for mailing contained in this affidavit. ❑ (BY PERSONAL SERVICE) I caused to be delivered each such document by hand to each addressee above. ❑ (BY OVERNIGHT DELIVERY) I caused a true copy of each document, placed in a sealed envelope with delivery fees provided for, to be deposited in a box regularly maintained by Federal Express®(FEDEX). I am readily familiar with this firm's practice for collection and processing of documents for overnight delivery and know that in the ordinary course of business practice the document(s) described above will be deposited in a box or other facility regularly maintained by UPS or delivered to a courier or driver authorized by UPS to receive documents on the same date it is placed for collection. ❑ (BY FACSIMILE) By use of facsimile machine number , I served a copy of the within document(s) on the above interested parties at the facsimile numbers listed above. The transmission was reported as complete and without error. The transmission report was properly issued by the transmitting facsimile machine. (BY ELECTRONIC SERVICE) Based on a court order or an agreement of the parties to accept service by electronic transmission, I caused the documents to be sent to the persons at their electronic notification addresses. I did not receive, within a reasonable time after the transmission, any electronic message or other indication that the transmission was unsuccessful. Executed on February 28, 2024, in Anaheim, California. I declare under penalty of petjury under the laws of the State of California that the above is true,and corregt. Jacob Broyles 255 Calle Siempre Palm Desert, CA 92211 SIGNER NAME Latrice Thomas SERVICE LIST File # CJP-3049828 1 PROOF OF SERVICE TO Gloria Sanchez From: Claudia Bray <cbray@carlwarren.com> Sent: Wednesday, February 7, 2024 1:10 PM To: Reyes, Margo A. Cc: Gloria Sanchez; Grochow, Kevin J.; Richards, Edwin J. Subject: RE: Broyles v City of Palm Desert (3049828)- Status Report 6Feb2024 based on City's Responses to Questionnaire and Documents (Power Point, Memo, CC&Rs) Hello Ed, have read through your status report and would recommend moving forward with the rejection of the claim to cut the statute and I do understand that this statute would only apply to causes of action other than for inverse condemnation. Carl Warren normally sends out the rejection notice for the city of Palm Desert, so I will go ahead and send out the rejection notice by the end of the week. Claudia Bray Sr Claims Examiner cbray@carlwarren.com Tel: (657) 622-4216 1 Fax: (866) 254-4423 CARL WARREN & COMPANY A VENBROOK COMPANY Carl Warren & Company, LLC CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, proprietary, non-public and/or privileged. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this email in error, please delete it from your system and advise the sender immediately. Please be advised that we are unable to bind, endorse or amend coverage via voicemail, email, or facsimile until confirmed in writing by an authorized representative of this office. We accept no liability for any damage caused by any virus transmitted by this email. It is your responsibility to check this email (including any attachments) for viruses. i Gloria Sanchez From: Sent: To: Cc: Subject: Attachments: Reyes, Margo A. <margo.reyes@kutakrock.com> Tuesday, February 6, 2024 8:08 AM Bray, Claudia Paul Zeglovitch (pzeglovitch@cjpia.org); Gloria Sanchez; Grochow, Kevin J.; Richards, Edwin J. Broyles v City of Palm Desert (3049828)- Status Report 6Feb2024 based on City's Responses to Questionnaire and Documents (Power Point, Memo, CC&Rs) Broyles v City of Palm Desert (3049828)- Status Report 6Feb2024 based on City's Responses to Questionnaire and Documents (Power Point, Memo, CC&Rs).pdf Re: Broyles v City of Palm Desert (3049828) Ms. Bray, Please see the attached regarding the above matter, sent on behalf of Ed Richards, Esq. Thank you. Margo A. Reyes I Legal Assistant KTAKRI margo.reves@kutakrock.com I www.KutakRock.com 5 Park Plaza, Suite 1500, Irvine, CA 92614 D: 949.417.0994 1 0: 949.417.0999 I F: 949.417.5394 Authorized E-Service Address: irvineintake@kutakrock.com This E-mail message is confidential, is intended only for the named recipients above and may contain information that is privileged, attorney work product or otherwise protected by applicable law. If you have received this message in error, please notify the sender at 402-346-6000 and delete this E-mail message. Thank you. i KUTAKROCK Kutak Rock LLP 5 Park Plaza, Suite 1500, Irvine, CA 92614-8595 office 949.417.0999 Edwin J. Richards edwin.richards@kutakrock.com February 6, 2024 VIA EMAIL Ms. Claudia Bray CARL WARREN & COMPANY P.O. Box 2411 Tustin, CA 92781 Re: Broyles v. City Of Palm Desert Member Agency City of Palm Desert Claimant Jacob Broyles D/Loss 8/20/2023 File No. 3049828 CJPIA Rank unknown Pre -Litigation Dear Ms. Bray: Upon receipt of this file we contacted the City in an effort to obtain sufficient facts about this flood event to allow us to formulate our preliminary opinions regard liability and the damage exposure of the claim. We sent to the City a detailed list of questions and requested their responses with supporting documents. Last week we received detailed responses to our questions plus supporting documents including a Power Point presentation that was presented to the City Council by City staff, copies of staff emails regarding the City's responses to the storm event, and a copy of the CC&Rs from the Condominium Association for the community where the flood event occurred (Spanish Walk Community Association). Based on that information, allow me to supplement our prior status report. FACTS This is a flood damage case that occurred during Tropical Storm Hillary in August 2023. The Claimant, Jacob Broyles, is the owner of a condominium unit in the condominium development named Spanish Walk. Attachment 1 contains two photos of the flooding of that community which is the subject of this claim. The claim alleges that the City, and its city storm drain system, caused or contributed to the damage to Broyles condominium. However, the recent information from the City confirms that the drainage system that services the Spanish Walk Community is privately owned by the condominium association, and my review of the applicable CC&Rs clearly obligates the Association to maintain that private drainage system as part of the common area of the Association (Section 2.46 of the CC&Rs). Therefore, if the cause of the flooding was related to that privately owned drainage system, then liability to the City is doubtful. 4861-2999-1843.2 11317-359 PRIVILEGED AND CONFIDENTIAL ATTORNEY -CLIENT COMMUNICATION AND/OR WORK PRODUCT rv'. 1 Y\1mV^\ if Ms. Claudia Bray February 6, 2024 Page 2 When the flooding of the Spanish Walk Community was reported, the City responded to the health and safety issues created by the flood event. The City's Building Official deemed 34 of the condo units in the community, including Mr. Broyles' unit, to be uninhabitable and issued red tags that prohibited the owners from returning to their homes. The City provided transportation services to those residents to temporary housing that had been provided, and then City crews and contractors removed the flood waters and resulting debris and restored electrical power. The flooding caused by this storm was city-wide and not limited to the Spanish Walk community. The City responded to flooding and power outages throughout the City. During those efforts the City distributed 50,000 sandbags and 300 tons of sand, and power outages occurred at many locations in the City. There is one issue identified in the information provided by the City that is of concern. Documents from the City and County Fire Departments include documents that suggest that the flooding of this community may have been caused by a "major drainage channel" located outside of the Spanish Walk community that "topped its berm and flooded the Spanish Walk community". The content of the City's Power Point suggests that after the flood event a new "temporary berm structure was built northwest of the community". There is no indication whether that "major drainage channel" is a public facility owned and maintained by the City, a County facility, or a privately owned facility. That new information creates a new issue to be investigated. If the cause of the flooding was the private drainage system within Spanish Walk, then this appears to be a case of doubtful liability, but if the source of the water that flooded the community was a City owned "major drainage channel" located outside of the community, then liability could be a possibility. LIABILITY As indicated in our prior status report, we anticipate that if the Claimant files a lawsuit, it will be based on the doctrine of inverse condemnation. Inverse condemnation imposes strict liability on a public entity if a public improvement or public project causes damage to private property while operating as designed. However, the Claimant does have the burden of proof to establish that the public improvement/project was at least a substantial contributing cause of the Claintiff's damage. The damages recoverable in an inverse condemnation case are limited to the cost of repair/restoration, or the diminution in value caused by the event, whichever is less. Damages for pain and suffering/emotional distress are not recoverable. In this case the claim alleges that the flood event caused property damage to the Claimant's condominium and loss of use while repairs were being conducted. If the Claimant can prove that this property damage was caused by a City drainage system then these categories of damage would be recoverable, but if the cause of the damage was a failure of the private drainage system owned and maintained by the Condominium Association, then they will not be recoverable against the City. The claim also alleges that the City was slow in restoring electrical power after the storm. The City denies any delay in restoring power. Even if the City did delay in restoring power, those damages may not be recoverable under an inverse condemnation claim as they may not qualify as property damage. 4861-2999-1843.2 11317-359 PRIVILEGED AND CONFIDENTIAL ATTORNEY -CLIENT COMMUNICATION AND/OR WORK PRODUCT A r\%.JT/ r\�V�.►1'\ Ms. Claudia Bray February 6, 2024 Page 3 Lastly, the Broyles claim alleges that the City negligently delayed in approving the building permit applications needed for him to repair his condominium. Those damages are not recoverable under the doctrine of inverse condemnation and the City is immune from liability based on a negligence claim under Government Code Section 815, and it is immune from any liability arising from conduct related to the issuance or denial of permits under Government Code Section 818.4. At this early date it preliminarily appears to me that the City's strongest defense will be based on the fact that the City advises that this storm was rated as a 200-year event. In my experience, there are no standards that require a drainage system to be designed for any greater event than a 100-year event. That will allow us to argue that the cause of the damages in this case was this "act of God" rain event that exceeded all reasonable design requirements. That causation defense should be sufficient to successfully defend this claim including the inverse condemnation claim. PROCEDURAL STATUS OF THE CLAIM The claim was timely filed on September 22, 2023. I am informed that the claim was not formally denied by the City within 45 days which means that it has been denied by operation of law on the 46th day after it was filed with the City (November 6, 2023). I recommend that a decision be made at this time with regard to whether to continue to take no action on the claim which has been denied effective on November 6, 2023, or serve the Claimant at this time with a formal notice of rejection of the claim which will shorten the statute of limitation within which he must file a lawsuit. The available options, and the considerations for each option are as follows. Option 1 is to take no further action on the Claim at this time in which case it has been denied on November 6, 2023. Under this option the Government Code provides that the Claimant has 2 years from the date of the occurrence to file a lawsuit. That date is in this case is sometime in August 2025. Option 2 is to now serve the Claimant with a formal rejection of his claim even though it has already been denied by operation of law. The advantage to this option is that it will shorten the statute of limitation during which a lawsuit can be filed. Under this option the Claimant would be required to file a lawsuit within 6 months of the date that the claim is formally rejected. If the City were to reject the claim on February 6, 2024, the Claimant would be required to file his lawsuit by August 6, 2024. HOWEVER, note that this analysis applies only to causes of action that the Claimant might bring other than for inverse condemnation. Inverse condemnation is a judicially created Constitutional claim not a tort claim, and therefore the claims requirements of the California Tort Claims Act do not apply. There is therefore no requirement for a Claimant to file a government claim before fling a lawsuit, and the statute of limitation to file a lawsuit is three years from the date of the loss. That three-year statute of limitations in this case will expire in August 2026. Despite these potential statute of limitation defenses that may develop, our strongest potential defense will be as follows. The City reports that this storm was rated as a "200-year event". Based on my experience with flood related litigation, I do not believe that there is any 4861-2999-1843.2 11317-359 PRIVILEGED AND CONFIDENTIAL ATTORNEY -CLIENT COMMUNICATION AND/OR WORK PRODUCT 1!vTir\rv�rI Ms. Claudia Bray February 6, 2024 Page 4 recognized standard that requires a party to design a drainage facility for a storm greater than a 100-year event. More investigation will be required, but I continue to consider this to be a case of doubtful liability at this stage. CONCLUSION With your permission we will follow up with the City to obtain additional information regarding staff's responses to this storm event and the details of the "major drainage channel ... that topped its berm ...and flooded the Spanish Walk community" to determine if that is a City owned channel, and determine the status of the Claimant's repairs to his property. In the meantime please let me know which option discussed above that you decide to choose with regard to whether to issue a formal denial of the claim at this time. Feel free to call me if you want to discuss. Very truly yours, Edwin J. Richards EJR:mar Attachment Cc: California JPIA-Liability Program Manager Gloria Sanchez- City of Palm Desert 4861-2999-1843.2 11317-359 PRIVILEGED AND CONFIDENTIAL ATTORNEY -CLIENT COMMUNICATION AND/OR WORK PRODUCT ATTACHMENT 1 Flood on Paseo Bravo . a. `� �• ♦ ♦ rA ♦• ,4 "11• r*+ Gloria Sanchez From: Gloria Sanchez Sent: Thursday, January 18, 2024 10:19 AM To: Grochow, Kevin J. Cc: Todd Hileman; Chris Escobedo; Anthony Mejia; Andrea Staehle; Amber Molina; Reyes, Margo A. Subject: RE: Broyles v City of Palm Desert Attachments: 2024-01-18 Broyles - Response to Questions from Kutak Rock.pdf Good morning, Kevin: Attached are the responses to the questions below. Additionally, the FTP links provide additional documentation as referenced. Hurricane Hilary PowerPoint from Council Meeting of 8/24/2023 https://cpditp.org/link/tUOs0CV8JHzcXIf1T1OR90 Alegria at Spanish Walk CC&Rs https://cpdftp.org/link/a0ku6BCO2iAHrCh842JUyM Building & Safety emails https://cpditp.org/link/Fg0OF8AZ2C5sk3Sj8PIV1q If you have questions or need additional information, please do not hesitate to contact us. Have a wonderful rest of the week. From: Grochow, Kevin J. <Kevin.Grochow@KutakRock.com> Sent: Thursday, December 21, 2023 11:40 AM To: Gloria Sanchez <gsanchez@palmdesert.gov> Cc: Todd Hileman <thileman@palmdesert.gov>; Chris Escobedo <cescobedo@palmdesert.gov>; Anthony Mejia <amejia@palmdesert.gov>; Andrea Staehle <astaehle@palmdesert.gov>; Amber Molina <amolina@palmdesert.gov>; Reyes, Margo A. <margo.reyes@kutakrock.com> Subject: Broyles v City of Palm Desert Gloria, I will be one of the attorneys assisting the City and CJPIA regarding the above referenced claim by Jacob Broyles. In order to do so, I would like to set up a meeting or a call with public works or relevant City staff regarding the issues and questions below, and assist me in obtaining all related documentation. Can you please let me know when we could arrange that for? 1. The cause of the flooding. 2. Ownership, control, and maintenance of the drainage improvements at issue. 3. Whether any the drainage improvements collected and funneled water toward the claimant's property. i 4. Whether flooding has occurred in this location before. 5. Whether Claimant's property sit below grade. 6. Whether the City has design plans or, as -built drainage plans. 7. Determining what storm capacity the improvements i.e. built to. (i.e.: 100 year storm) 8. The severity of this storm, if known. (i.e.: 200 year storm) 9. Whether any hydrology studies of the location have been completed 10. Inspection and maintenance practices and records for the drainage system. (such as storm drain cleanout records.) 11. Whether the City did anything to prepare for the storm (such as clearing debris from the gutters/drains, placing sandbags down)? 1. When City staff was called out to the location, what did they do and what happened? 2. Did the Claimant do anything to protect their property (such as placing sandbags down)? 3. Was any CCTV footage of the storm drain obtained? If so, obtain a copy of it. Was the drain clear? 1. Whether Claimant or an adjacent property owners complete any work which potentially contributed to the flooding and whether it was permitted. 2. Whether Claimant's property has adequate drainage or has any potential deficiencies with it that contributed to the flooding. 3. If there was a defect in the drainage improvements, was it in the design (i.e. plans call for too small of a pipe) or in the construction (i.e. the contractor installed the wrong size pipe)? 4. The City's response to complaints of flooding in this area. 5. Correspondence and contact with the Claimant regarding the repair of his property at 255 Calle Siempre, Palm Desert, CA 92211 Feel free to give me a call if you have any questions. Thank you. Kevin J. Grochow, Esq. Partner Kutak Rock LLP 5 Park Plaza, Suite 1500, Irvine, CA 92614 Kevin.Grochow@kutakrock.com p: 949.417.0999 f: 949.417.5394 This E-mail message is confidential, is intended only for the named recipients above and may contain information that is privileged, attorney work product or otherwise protected by applicable law. If you have received this message in error, please notify the sender at 402-346-6000 and delete this E-mail message. Thank you. 2 Thursday, January 18, 2024 Response to Kevin J. Grochow of Kutak Rock LLPT Claim 3049828 Jacob Broyles — Spanish Walk 1. The cause of the flooding. Tropical Storm Hilary — Attached is the PowerPoint presented to the City Council at the regular meeting of August 24, 2023, summarizing the City's response and efforts before, during, and after Tropical Storm Hilary. Video of the Council Meeting. PowerPoint provided with FTP link 2. Ownership, control, and maintenance of the drainage improvements at issue. Spanish Walk. Provided with FTP link are the Covenant, Condition, and Restriction also known as CC&Rs. 3. Whether any drainage improvements collected and funneled water toward the claimant's property. No. 4. Whether flooding has occurred in this location before. No. 5. Whether Claimant's property sit below grade. No. Grade as defined by the hydrology study. For details, please contact City Engineer Mike Rowe at (760) 776-6418 or the front desk at (760) 346-0611 ext. 418. 6. Whether the City has design plans or as -built drainage plans. Project design reports on file. Yes. 7. Determining what storm capacity, the improvements i.e. built to. (i.e.: 100-year storm) — 100-year storm 8. The severity of this storm, if known. (i.e.: 200-year storm). In excess of 100 years. 9. Whether any hydrology studies of the location have been completed. All projects have hydrology studies prepared with associated Storm Drain Facilities. 10. Inspection and maintenance practices and records for the drainage system. (Such as storm drain cleanout records.) Spanish Walk is a private system. Public facilities are available. 11. Whether the City did anything to prepare for the storm (such as clearing debris from the gutters/drains, placing sandbags down)? Yes, only on public facilities. There was public outreach and notifications. Sandbags were offered free of charge to the public. 1. When City staff was called out to the location, what did they do and what happened? City Manager and City Council gave approval in Closed Session to provide funds to help alleviate the emergency situation. The buildings were ultimately red tagged and inaccessible to the homeowners. The City placed four residents in offsite housing because they were unable to access their property. 2. Did the Claimant do anything to protect their property (such as placing sandbags down)? Unknown. 3. Was any CCTV footage of the storm drain obtained? If so, obtain a copy of it. Was the drain clear? The city does not have footage. Local news agencies may have footage. The catastrophic event came down I-10 and the I-10 drainage was overwhelmed. 1. Whether Claimant or adjacent property owners complete any work which potentially contributed to the flooding and whether it was permitted. Unknown. 2. Whether Claimant's property has adequate drainage yes or has any potential deficiencies with it that contributed to the flooding. Not according to Spanish Walk Hydrology report, no. 3. If there was a defect in the drainage improvements, was it in the design (i.e. plans call for too small of a pipe) or in the construction (i.e. the contractor installed the wrong size pipe)? All built per plan. (The caveat is, was the basin in Spanish Walk overwhelmed?) 4. The City's response to complaints of flooding in this area. City mobilized. Localized flooding on Gerald Ford where no facilities are in place to the west of Spanish Walk. 5. Correspondence and contact with the Claimant regarding the repair of his property at 255 Calle Siempre, Palm Desert, CA 92211. Chief Building Official Jason Finley Building Official corresponded with the HOA Property Manager to provide information for the residents of Spanish Walk. Building & Safety emails provided with FTP link. PALM DESERT TO HURRICAN PALM DESERT `' Ki BEFORE TH • Emergency Operations C • Communications Strateg • New webpage creat every 30 minutes during - the storm • Press release sent to newsletters were sent businesses, and HO, • Message and flyer s tenants • Twitter, Facebook, updates, roughly e minutes throughot. • Positive public per City's response to 1 very t t E STORM: v- k 'Of Wain 714,46L Sandbag Distribution Civic Center Park 8/19/2023 PUBLIC WORKS RESPONSE • Distributed over 50,000 sandbags to residents • 35 City staff activated • Administrative staff • All Street team activated • All Landscape team activated • Roughly 300 tons of sand provided • Checked all roadway drainage systems and turned off irrigation to parks and city property • Prepared all storm equipment: chainsaws, pumps, rain gear • Prepared traffic control in preparation for road closures PUBLIC WORKS - Grapevine Street El Paseo & 1 1 1 WHAT OCCURRED DURING THE STORM • Hurricane Hilary caused widespread flooding due to heavy rainfall • City staff quickly coordinated a response plan and held regular Zoom meetings, enabling efficient collaboration on our strategy FLOOD MITIGATION INFRASTRUCTURE WORKED AS IT SHOULD Retention Basin Near Hovley Lane West INCLUDING RECENT INVESTMENTS Whitestone Lane During Storm: 2023 Post -Storm Assessment • Park issues • Flooding • Damage to park structures • Landscape • Damage to approximately 300 to 400 trees • Street issues • Flooding & trees on roadways • Traffic signals SPANISH WALK • City and Riverside County Fire notified of a major drainage channel topping its berm and flooding the Spanish Walk neighborhood • 34 homes red -tagged for life and safety purposes • City staff transported displaced residents by vans loaned from Family YMCA of the Desert • City found temporary shelter for displaced residents and provided food and drinks SPANISH WALK SINCE THE STORM • A new temporary berm structure was created northwest of the community • Community drained of water and streets cleaned of mud and debris • Ongoing assessment for other mitigation efforts Clean Up Efforts on Paseo Bravo MAJOR TROUBLE SPOTS • Channel at Spanish Walk / clean up • Berm / Regional solutions • Cook & Gerald Ford • Gerald Ford and Frank Sinatra • Looking for permanent solutions to low points in roads • Traffic signal outages Gerald Ford at Cook Fred Waring at Tenn. STRATEGY FOR PARKS REOPENING • Pumps to dewater flooded areas • Landscape Contractors on cleanup and debris removal • Inspect electrical, irrigation, and playground equipment Freedom Park r III I I I III'I r� NEXT STEPS • Prioritize remediation efforts • Comprehensive drainage study • Expedite Section 29 Drainage Basin Project • Methods of possible reimbursement • Talked to CJPIA regarding reimbursements for city -owned assets • Taking steps to pursue State or federal funds THANKS TO OUR STAFF & VENDORS • All City staff who supported storm preparation and remediation efforts: • Public Works • Capital Improvements • Landscape • Streets Team • Facilities • Emergency Services Coordinator • Communications And our fast -acting vendors: • Family YMCA of the Desert • Granite Construction • Tri-Star Construction • CTI • West Coast Arborists • Residence Inn by Marriott • Burrtec • Wilcorp RECORDING REQUESTED BY: 1F I-trnerrc. Zn 1 WHEN RECORDED MAIL TO: Luce, Forward, Hamilton & Scripps LLP 600 West Broadway, Suite 2600 San Diego, CA 92101-3372 Attn: Nancy T. Scull, Esq. DOC # 2007-0544311 08/23/2007 08:00A Fee:259.00 Page 1 of 85 Recorded in Official Records County of Riverside Larry W. Ward Assessor, County Clerk 8 Recorder I I I I I I I I I I I I I 11111111111111111111111111 I l l 11111111 IIII1 S R U PAGE SIZE DA MISC LONG RFD COPY l's_ M A L 465 426 PCOR NCOR SMF NCHG EXAM CI)3 IT: CTY UNI DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF ALEGRIA AT SPANISH WALK C 023 SECTION 17.4 OF' THIS DECLARATION CONTAINS A BINDING ARBITRATION PROVISION IN ACCORDANCE WITH THE FEDERAL ARBITRATION ACT. YOU SHOULD CONSULT LEGAL COUNSEL WITH ANY QUESTIONS ON THESE OR OTHER PROVISIONS OF THIS DECLARATION. 3778561.5 CC&RS 31096-51 - WPWAlcgria at Spanish Walk Tuns INSTRUMENT IS RECORDED IN THE COUNTY OF RIVERSIDE AT THE REQUEST OF FIRST AMERICAN TITLE COMPANY AS AN ACCOMMODATION ONLY. IT IIAS NOT BEEN EXAMINED AS TO TI'S EXECUTION OR AS TO ITS EFFECT UPON THE TITLE. Non -Order Search Doc: RV:2007 00544311 Page 1 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM TABLE OF CONTENTS Page ARTICLE 1 RECITALS 1 1.1 Property Owned By Declarant 1 1.2 Right To Annex 1 1.3 Nature Of Project 1 1.4 Description Of Project 1 1.5 Spanish Walk Community 2 ARTICLE 2 DEFINITIONS 2 2.1 Additional Charges 2 2.2 Additional Property 2 2.3 Annexation 2 2.4 Architectural Committee 2.5 Architectural Guidelines 2 2.6 Articles 3 2.7 Association 3 2.8 Association Maintenance Manual 3 2.9 Association Property 3 2.10 Association Rules 3 2.11 Board 3 2.12 Budget 3 2.13 Building Envelope 3 2.14 Bylaws 3 2.15 Capital Improvement Assessments 3 2.16 City 3 2.17 Common Area 3 2.18 Common Expenses 4 2.19 Community Association 4 2.20 Community Association Maintenance Areas 5 2.21 Community Declaration 5 2.22 Community Governing Documents 5 2.23 Condominium 5 2.24 Condominium Building 5 2.25 Condominium Plan 5 2.26 County 5 2.27 Customer Care Program 5 2.28 Declarant 5 2.29 Declaration or Neighborhood Declaration 6 2.30 DRE 6 2.31 Eligible Holder 6 2.32 Enforcement Assessments 6 2.33 Exclusive Use Balcony Areas 6 2.34 Exclusive Use Easement or Exclusive Use Easement Area 6 2.35 Exclusive Use Patio Areas 6 2.36 FHA 6 2.37 Final Map 6 3778561.5 CC&RS 31096-51 - WPHJAlegria at Spanish Walk Non -Order Search Doc: RV:2007 00544311 Page 2 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM TABLE OF CONTENTS Page 2.38 First Mortgage 7 2.39 First Mortgagee 7 2.40 Fiscal Year 7 2.41 Governing Documents 7 2.42 Improvements 7 2.43 Institutional Mortgagee 7 2.44 Invitee 7 2.45 Limited Warranty 7 2.46 Maintenance Responsibility Chart 7 2.47 Maintenance Obligations 7 2.48 Member 8 2.49 Module 8 2.50 Mortgage 8 2.51 Mortgagee 8 2.52 Notice and Hearing 8 2.53 Operating Rules 8 2.54 Owner 8 2.55 Owner Maintenance Manual 8 2.56 Person 8 2.57 Phase 9 2.58 Project 9 2.59 Property 9 2.60 Public Report 9 2.61 Regular Assessments 9 2.62 Residential Unit 9 2.63 Spanish Walk Community 9 2.64 Special Assessments 9 2.65 Supplementary Condominium Plan 10 2.66 Supplementary Declaration 10 2.67 Utility Facilities 10 2.68 VA 10 2.69 Voting Power 10 ARTICLE 3 OWNERSHIP AND EASEMENTS 10 3.1 Ownership Of Condominium 10 3.2 No Separate Conveyance 11 3.3 Delegation of Use 11 3.4 Easements 11 3.5 Light, Air and View 13 3.6 Right of Access 13 ARTICLE 4 THE ASSOCIATION 13 4.1 The Organization 13 4.2 Association Action; Board of Directors and Officers; Members' Approval 13 4.3 Powers of the Association 13 4.4 Duties of the Association 16 3778561.5 CC&RS 3I096-5I - WPH/Aiegria al Spanish Walk ii Non -Order Search Doc: RV:2007 00544311 Page 3 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM TABLE OF CONTENTS Page 4.5 Limitations on Authority of Board 18 4.6 Contracts 19 4.7 Personal Liability 19 ARTICLE 5 MEMBERSHIP AND VOTING RIGHTS IN ASSOCIATION 19 5.1 Membership 19 5.2 Number of Votes 20 ARTICLE 6 ASSESSMENTS 21 6.1 Creation of Lien and Personal Obligation for Assessments 21 6.2 Purpose of Assessments 21 6.3 Regular Assessments 22 6.4 Special Assessments 22 6.5 Capital Improvement Assessment -)3 6.6 Enforcement Assessments 23 6.7 Changes to Assessments 23 6.8 Uniform Rate of Assessment 24 6.9 Date of Commencement of Regular Assessments; Due Dates 25 6.10 Notice and Assessment Installment Due Dates 25 6.11 Estoppel Certificate 25 6.12 Collection of Assessments, Liens 25 6.13 Additional Charges 27 6.14 Waiver of Exemptions ?7 6.15 Subordination of Lien to First Mortgages 27 6.16 No Offsets 28 6.17 Personal Liability of Owner 28 6.18 Transfer of Property 28 6.19 Failure to Fix Assessments 28 6.20 Property Exempt From Assessments 28 6.21 Common Area/Association Property Improvements 29 6.22 Initial Capital Contributions 29 ARTICLE 7 USE RESTRICTIONS 29 7.1 Restrictions of Community Declaration 29 7.2 Residential Use 30 7.3 Rental of Residential Units 30 7.4 Parking and Vehicular Restriction 30 7.5 Installations. 31 7.6 Mineral Exploration 31 7.7 Drainage and Erosion Control 31 7.8 Compliance with Requirements Regarding Project Storm Water Pollution 32 7.9 Post Tension Slabs 33 7.10 Compliance with Laws, Etc 33 ARTICLE 8 MAINTENANCE 33 8.1 Maintenance Obligations of Owners 33 8.2 No Alterations 34 3778561.5 CC&RS 31096-5I - WPHIAkgiia of Spanish Walk Non -Order Search Doc: RV:2007 00544311 Page 4 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM TABLE OF CONTENTS Page 8.3 Owner's Failure to Maintain 34 8.4 Maintenance Obligations of Association 34 8.5 Future Construction 35 8.6 Inspection of the Project 35 ARTICLE 9 ARCHITECTURAL REVIEW 36 9.1 Non -applicability to Declaration 36 9.2 Amendments 36 9.3 Scope 36 9.4 Architectural Guidelines 36 9.5 Approval of Plans and Specifications 36 9.6 Inspection and Correction of Work 37 9.7 Government Regulations 38 9.8 Diligence in Construction 38 9.9 Fee for Review 38 9.10 Interpretation 38 9.11 Waiver 38 9.12 Estoppel Certificate 39 9.13 Liability 39 9.14 Variances 39 9.15 Appointment of Architectural Committee 39 9.16 Compensation 40 ARTICLE 10 DEVELOPMENT RIGHTS 40 10.1 Limitations of Restrictions 40 10.2 Rights of Access and Completion of Construction 40 10.3 Size and Appearance of Project 41 10.4 Marketing Rights 41 10.5 Alterations to Map 42 10.6 Title Rights 42 10.7 Power of Attorney 42 10.8 Amendment 43 10.9 Supplementary Condominium Plans and Supplementary Declarations 43 ARTICLE 11 INSURANCE 43 11.1 Association's Insurance Obligations 43 11.2 Owners' Insurance Obligations 47 11.3 Review of Insurance 48 11.4 Board's Authority to Revise Insurance Requirements 48 ARTICLE 12 DESTRUCTION OF IMPROVEMENTS AND CONDEMNATION 48 12.1 Restoration Defined 48 12.2 Restoration Proceeds for Association Property or Common Area 49 12.3 Rebuilding Contract 51 12.4 Authority to Effect Changes 51 12.5 Minor Repair and Reconstruction 52 12.6 Damage or Destruction to a Residential Unit 52 3778561.5 CC&RS 31096.51 - WPWAIegia ai Spanish Walk iv Non -Order Search Doc: RV:2007 00544311 Page 5 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM TABLE OF CONTENTS Page 12.7 Condemnation of Common Area and Association Property 52 12.8 Condemnation of a Residential Unit 53 ARTICLE 13 PARTITION AND SEVERABILITY OF INTERESTS 53 13.1 Suspension 53 13.2 Partition 53 13.3 Distribution of Proceeds 54 13.4 Power of Attorney 54 13.5 Prohibition Against Severance 54 13.6 Conveyances 54 ARTICLE 14 RIGHTS OF MORTGAGEES 55 14.1 Conflict 55 14.2 Liability for Unpaid Assessments 55 14.3 Payment of Taxes and Insurance 55 14.4 Notice to Eligible Holders 55 14.5 Reserve Fund 56 14.6 Inspection of Books and Records 56 14.7 Financial Statements 56 14.8 Actions Requiring Eligible Holder Approval 56 14.9 Votes for Termination of Project 57 14.10 Condemnation or Destruction 57 14.11 Self -Management 57 14.12 Mortgagee Protection 57 14.13 Distribution of Insurance and Condemnation Proceeds 57 14.14 Voting Rights on Default 58 14.15 Foreclosure 58 14.16 Non -Curable Breach 58 14.17 Loan to Facilitate 58 14.18 Appearance at Meetings 58 14.19 Right to Furnish Information 58 14.20 Inapplicability of Right of First Refusal to Mortgagee 58 14.21 Written Notification to Mortgagees or Guarantors of First Mortgages 59 ARTICLE 15 AMENDMENTS 59 15.1 Conflict with Community Declaration 59 15.2 Amendment Before the Close of First Sale 59 15.3 Amendments After the Close of First Sale 59 15.4 Further Approvals Regarding Amendments 61 15.5 Conflict with ARTICLE 14 or Other Provisions of this Declaration 61 15.6 Business and Professions Code Section 11018.7 61 15.7 Reliance on Amendments 61 ARTICLE 16 ANNEXATION OF ADDITIONAL PROPERTY 61 16.1 Annexation 61 16.2 Annexation Without Approval 62 16.3 Covenants Running with the Land 62 3778561.5 CC&RS 31096-51 - WPUTAlcgria at Spanish Walk Non -Order Search Doc: RV:2007 00544311 Page 6 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM TABLE OF CONTENTS Paee 16.4 Supplementary Declaration 63 16.5 Association Property 63 16.6 Rights and Obligations of Owners 63 16.7 Mergers or Consolidations 63 16.8 De -Annexation 63 ARTICLE 17 ENFORCEMENT 63 17.1 Term 63 17.2 Enforcement and Nonwaiver 64 17.3 Notice of Actions Against Declarant 64 17.4 Alternative Dispute Resolution 64 ARTICLE 18 GENERAL PROVISIONS 69 18.1 Headings 69 18.2 Severability 69 18.3 Cumulative Remedies 69 18.4 Violations as Nuisance 69 18.5 No Racial Restriction 69 18.6 Access to Books 69 18.7 Liberal Construction 69 18.8 Notification of Sale of Condominium 69 18.9 Number, Gender 70 18.10 Exhibits 70 18.11 Binding Effect 70 18.12 Easements Reserved and Granted 70 18.13 Statutory References 70 18.14 U.S. Department of Veteran Affairs Approval 70 18.15 Applicability of FHA/VA Regulations 70 EXHIBITS EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY EXHIBIT "B" LEGAL DESCRIPTION OF ADDITIONAL PROPERTY EXHIBIT "C" MAINTENANCE RESPONSIBILITY CHART 3778561.5 CC&RS 31096-51 — WPWAIegria at Spanish Wall vi Non -Order Search Doc: RV:2007 00544311 Page 7 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF ALEGRIA AT SPANISH WALK This DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF ALEGRIA AT SPANISH WALK ("Declaration") is made this 8th day of August, 2007 by WESTERN PACIFIC HOUSING, INC., a Delaware corporation ("Declarant") with reference to the facts set forth below. ARTICLE 1 RECITALS 1.1 Property Owned By Declarant. Declarant is the Owner of the real property situated in the City of Palm Desert, County of Riverside, State of California, more particularly described on Exhibit "A" attached hereto and incorporated herein. 1.2 Richt To Annex. Declarant may add all or any of the Additional Property and may record additional Condominium Plans with respect thereto, and said Additional Property so annexed will thereupon be subject to this Declaration and become a part of the Property. 1.3 Nature Of Project. Declarant intends to establish a plan of condominium ownership and to develop the Property, including any Additional Property which may hereafter be annexed thereto, as a condominium project within the meaning of California Business and Professions Code Section 11004.5(c) and California Civil Code Section 1351(0, to conform with the provisions of the California Subdivided Lands Law (California Business and Professions Code Section 11000, et seq.) and to subject the Property to certain limitations, restrictions, conditions and covenants as hereinafter set forth, in accordance with the provisions of California Civil Code Sections 1350 et seq. To that objective, Declarant desires and intends to impose on the Property certain mutually beneficial restrictions, limitations, easements, assessments and liens under a comprehensive plan of improvement and development for the benefit of all of the Owners, the Condominiums, Common Area and Association Property and the future Owners of said Condominiums, Common Area and Association Property. 1.4 Description Of Project. Declarant intends to develop the Project in Phases. The first Phase is planned to consist of twelve (12) Condominiums. Declarant makes no guarantee that the Project will be constructed as presently proposed. Owners of a Condominium in each Phase will receive title to a Residential Unit plus an undivided fractional interest as tenant in common to the Common Area located within that Building Envelope. In addition, certain Owners of a Condominium will receive the exclusive right of use and occupancy of a portion of the Common Area and/or Association Property designated as an appurtenant Exclusive Use Easement, all as shown on the Condominium Plan covering that Phase. Each Owner of a Condominium will also receive an easement for ingress and egress over the Common Area and/or Association Property of the Phase in which the Condominium is situated and within each other Phase, effective upon annexation and conveyance of the first Condominium in each such Phase, subject to the terms of the Governing Documents. Each Condominium shall have appurtenant to it a membership in the Association. 3778561.5 CC&RS 31096-51 — WPH/Alegia at Spanish Walk 1 Non -Order Search Doc: RV:2007 00544311 Page 8 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 1.5 Spanish Walk Community. The Project is located within a portion of a master planned community commonly known as "Spanish Walk." The Project is subject to the Community Declaration which governs the use and maintenance of the Property and subjects the Property to certain covenants, conditions and restrictions. Each Condominium shall also have appurtenant to it a membership in the Community Association. DECLARATION Declarant declares that the Property is, and shall be, held, conveyed, hypothecated, encumbered, leased, rented, used, occupied and improved subject to the following limitations, restrictions. easements, covenants, conditions, liens and charges, all of which are declared and agreed to be in furtherance of a plan of Condominium ownership as described in California Civil Code Section 1350 et seq. for the subdivision, improvement, protection, maintenance, and sale of Condominiums within the Property, and all of which are declared and agreed to be for the purpose of enhancing, maintaining and protecting the value and attractiveness of the Property. All of the limitations, restrictions, easements, covenants, conditions, liens and charges shall run with the land, shall be binding on and inure to the benefit of all parties having or acquiring any right, title or interest in the Property, shall be enforceable equitable servitudes and shall be binding on and inure to the benefit of the successors -in -interest of such parties. Declarant further declares that it is the express intent that this Declaration satisfy the requirements of California Civil Code Section 1354. ARTICLE 2 DEFINITIONS Unless the context otherwise specifies or requires, the terms defined in this Article shall, for all purposes of this Declaration, have the meanings herein specified. 2.1 Additional Charges. The term "Additional Charges" means costs, fees, charges and expenditures, including without limitation, attorneys' fees, late charges, interest and recording and filing fees, actually incurred by the Association in collecting and/or enforcing payment of assessments, fines and/or penalties. 2.2 Additional Property. The term "Additional Property" means all of the real property described on Exhibit "B" attached hereto and incorporated herein. 2.3 Annexation. The term "Annexation" means the process by which the Additional Property may be made subject to this Declaration as set forth in ARTICLE 16 of this Declaration. 2.4 Architectural Committee. The term "Architectural Committee" means the committee which may be appointed by the Board pursuant to ARTICLE 9 of this Declaration. 2.5 Architectural Guidelines. The term "Architectural Guidelines" means the design criteria adopted by the Board pursuant to ARTICLE 9 of this Declaration. 3778561.5 CCRRS 31096-5I — WPFUAlegiia al Spanish Walk 2 Non -Order Search Doc: RV:2007 00544311 Page 9 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 2.6 Articles. The term "Articles" means the Articles of Incorporation of the Association as they may from time to time be amended which are or shall be filed in the Office of the Secretary of State for the State of California. 2.7 Association. The term "Association" means the Alegria at Spanish Walk Homeowners Association, a California nonprofit mutual benefit corporation, its successors and assigns. 2.8 Association Maintenance Manual. The term "Association Maintenance Manual" refers to the manual which may be prepared by Declarant or its consultants and provided to the Association, specifying obligations for maintenance of the Association Property, Common Area and other areas to be maintained by the Association, as updated and amended from time to time. 2.9 Association Property. The term "Association Property" means all real property owned from time -to -time in fee title by the Association. The Association Property in the first Phase of the Project shall consist of the real property identified as Association Property on Exhibit "A." The Association Property in subsequent Phases shall be described in a Supplementary Declaration. 2.1(} Association Rules. The term "Association Rules" means the rules and regulations adopted by the Board from time to time. 2.11 Board. The term "Board" means the board of directors of the Association. 2.12 Budget. The term "Budget" means the budget for the Association which sets forth all the Common Expenses to be allocated among all the Owners. 2.13 Building Envelope. The term `Building Envelope" means each area designated on the Condominium Plan as a "Building Envelope." Each Building Envelope is a three- dimensional shape, the lower and upper boundaries of which are shown in the Condominium Plan. The lateral boundaries of each Building Envelope are vertical planes which are also described and depicted in the Condominium Plan. The Building Envelope includes all land and Improvements (whether now or hereafter located) within its boundaries. 2.14 Bylaws. The term "Bylaws" means the bylaws of the Association, as they may be amended from time to time, which are or shall be adopted by the Board. 2.15 Capital Improvement Assessments. The term "Capital Improvement Assessments" means the assessments which are levied pursuant to the provisions of ARTICLE 6 of this Declaration. 2.16 City. The term "City" refers to the City of Palm Desert, California. 2.17 Common Area. The term "Common Area" means the area within the Building Envelope excepting the Residential Units, which Common Area is owned in equal undivided interests by the Owners of the Residential Units situated in the Building Envelope within which the Common Area is situated, as defined in this Declaration and as described on the 3778561.5 CC&RS 31096-51 — WPH/Alcgia at Spanish Walk 3 Non -Order Search Doc: RV:2007 00544311 Page 10 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM Condominium Plan. The Common Area includes the bearing walls located within a Residential Unit and all structural components within a Residential Unit which may be required for the support of the building within which the Residential Units are located, except for the finished surfaces thereof. Any Utility Facilities serving more than one Residential Unit and within a Building Envelope, are a part of Common Area, as shown on the Condominium Plan. 2.18 Common Expenses. The term "Common Expenses" refers to the actual and estimated costs and expenses incurred or to be incurred by the Association, or the Board, including without limitation the following: 2.18.1 maintenance, management, operation, repair and replacement of the Association Property, Common Area and any Improvements located thereon and any other portion of the Project required to be maintained by the Association under this Declaration; 2.18.2 due but unpaid assessments; 2.18.3 costs of management and administration of the Association, including, without limitation, compensation paid by the Association to managers, accountants, attorneys, architects and employees; 2.18.4 the costs of any utilities, trash pickup and disposal, landscaping, and other services benefiting the Owners and their Residential Units to the extent such services are paid for by the Association; 2.18.5 the costs of fire, casualty, liability, worker's compensation and other insurance maintained by the Association; 2.18.6 reasonable reserves as deemed appropriate by the Board or otherwise required pursuant to the Governing Documents; 2.18.7 the costs of bonding of the members of the Board, and any professional managing agent or any other person handling the funds of the Association; 2.18.8 taxes paid by the Association; 2.18.9 amounts paid by the Association for the discharge of any lien or encumbrance levied against the Association Property and/or Common Area or portions thereof; 2.18.10costs incurred by any committees of the Association; and 2.I8.11any other expenses incurred by the Association in connection with the operation and/or maintenance of the Association Property and/or Common Area, or in furtherance of the purposes or the discharge of any obligations imposed on the Association by the Governing Documents. 2.19 Community Association. The term "Community Association" means the Spanish Walk Community Association, a California nonprofit corporation established under the Community Declaration. 3778561.5 CC&RS 31096-51 — WPFUAIebnia at Spanish Walk 4 Non -Order Search Doc: RV:2007 00544311 Page 11 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 2.20 Community Association Maintenance Areas. The term "Community Association Maintenance Areas" is defined in Section 1.1.17 of the Community Declaration and includes a portion of the Project which will be maintained by the Community Association, as shown in the Community Declaration and any Community Notice of Addition or Supplemental Community Declaration, as defined in the Community Declaration. 2.21 Community Declaration. The term "Community Declaration" refers to that certain Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for Spanish Walk recorded in the Office of the County Recorder of Riverside County on November 14, 2006, as Document No 2006-0839795, as the same may now or hereafter be amended. 2.22 Community Governing Documents. The term "Community Governing Documents" means the Community Declaration, the Bylaws of Spanish Walk Community Association, Articles of Incorporation of the Spanish Walk Community Association and any rules or guidelines which may be established by the Community Association and any other documents defined in Section 1.1.44 of the Community Declaration. 2.23 Condominium. The term "Condominium" means an estate as defined in California Civil Code Section 1351(f) consisting of an undivided interest as a tenant -in -common in all or any portion of the Common Area, together with a separate fee interest in a Residential Unit and any other separate interests in the Property as are described in this Declaration, the Condominium Plan or in the deed conveying the Condominium. The Condominiums described in this Declaration are defined as "Airspace Condominium Units" in the Community Declaration. 2.24 Condominium Building. The term "Condominium Building" refers to each building in which the Condominiums are located as shown on the Condominium Plan. 2.25 Condominium Plan. The term "Condominium Plan" means (i) the condominium plan recorded pursuant to California Civil Code Section 1351, and any amendments to the plan, (ii) any recorded Condominium Plan or Plans, including amendments thereto affecting any Phases which have been annexed pursuant to the provisions of this Declaration, and (ii) any Supplementary Condominium Plans (as defined below), recorded pursuant to the provisions of this Declaration. 2.26 County. The term "County" refers to the County of Riverside, California. 2.27 Customer Care Program. The term "Customer Care Program" means the Customer Care Program described in the Owner Maintenance Manual which provides certain services with respect to the Residential Units during the first year after the sale of such Residential Units from Declarant under authority of a Public Report. 2.28 Declarant. The term "Declarant" means Western Pacific Housing, Inc., a Delaware corporation, and its successors and assigns, if such successors and assigns acquire any or all of Declarant's interest in the Property for the purpose of purchase or sale, and Declarant has expressly transferred or assigned to such successors or assigns its rights and duties as Declarant to all or any portion of the Project. For any successor or assignee of "Declarant" to be 3778561.5 CC&RS 31096.51 — WPI-VAlebrria al Spanish Walk 5 Non -Order Search Doc: RV:2007 00544311 Page 12 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM deemed a Declarant under the terms of this Declaration, Declarant shall record in the County a certificate so designating said successor or assignee as Declarant. A successor Declarant shall also be deemed to include the beneficiary under any deed of trust securing an obligation from a then existing Declarant encumbering all or any portion of the Property, which beneficiary has acquired any such property by foreclosure, power of sale or deed in lieu of such foreclosure or sale. 2.29 Declaration or Neighborhood Declaration. The term "Declaration" or "Neighborhood Declaration" means this Declaration of Covenants, Conditions and Restrictions of Alegria at Spanish Walk as said Declaration may from time to time be amended or supplemented. 2.30 DRE. The term "DRE" means the California Department of Real Estate. 2.31 Eligible Holder. The term "Eligible Holder" means any First Mortgagee who has given written notice to the Association specifying the name and address of the Condominium subject to the Mortgage and requesting written notice of any or all of the events specified in this Declaration. 2.32 Enforcement Assessments. The term "Enforcement Assessments" means the assessments which are levied pursuant to the provisions of ARTICLE 6 of this Declaration. 2.33 Exclusive Use Balcony Areas. The term "Exclusive Use Balcony Areas" refers to those areas within the Common Area and/or Association Property designated as "Exclusive Use Balcony Areas" on the Condominium Plan over which exclusive easements have been reserved for the benefit of certain Owners for balcony purposes. 2.34 Exclusive Use Easement or Exclusive Use Easement Area. The term "Exclusive Use Easement" or "Exclusive Use Easement Area" means those portions of the Common Area and/or Association Property over which exclusive easements are reserved for the benefit of certain Owners in accordance with California Civil Code Section 1351(i), described in this Declaration and the Condominium Plan. Exclusive Use Easements, if any, are granted to an Owner in such Owner's grant deed and are appurtenant to such Owner's Condominium. 2.35 Exclusive Use Patio Areas. The term "Exclusive Use Patio Areas" refers to those areas within the Common Area and/or Association Property designated as "Exclusive Use Patio Areas" on the Condominium Plan over which exclusive easements have been reserved for the benefit of certain Owners for patio purposes. 2.36 FHA. The term "FHA" means the Federal Housing Administration of the United States Department of Housing and Urban Development and any department or agency of the United States government which succeeds to FHA's function of insuring notes secured by Mortgages on residential real estate. 2.37 Final Map. The term "Final Map" means the final subdivision or parcel map covering the Project. 3778561.5 CC&RS 31096.51 — WPWAlegria al Spanish Walk 6 Non -Order Search Doc: RV:2007 00544311 Page 13 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 2.38 First Mortgage. The term "First Mortgage" means a Mortgage which has priority under the recording statutes of the State of California over all other Mortgages encumbering a specific Condominium in the Project. 2.39 First Mortgagee. The term "First Mortgagee" means the Mortgagee of a First Mortgage. 2.40 Fiscal Year. The term "Fiscal Year" means the fiscal accounting and reporting period of the Association selected by the Board. 2.41 Governing Documents. The term "Governing Documents" collectively means this Declaration, the Articles, Bylaws, Architectural Guidelines, the Association Rules and any Supplementary Declarations. 2.42 Improvements. The term "Improvements" means: (i) all buildings and structures and appurtenances thereto of every type and kind, including, without limitation, residences and other buildings, walkways, trails, garages, sidewalks, walkways, fences, screening walls, block walls, retaining walls, awnings, patio and deck covers, stairs, decks, balconies, trellises, landscaping irrigation systems, the exterior surfaces of any visible structure, paintings, antennae, poles, signs, solar or wind powered energy systems or equipment and water softener, heater or air conditioning and heating fixtures or equipment; (ii) the grading, excavation, filling or similar disturbance to the surface of the land; and (iii) any change or alteration of any previously installed improvement, including any change of exterior appearance, color or texture. 2.43 Institutional Mortgagee. The term "Institutional Mortgagee" means (i) a First Mortgagee which is a bank, savings and loan association, insurance or mortgage company or other entity or institution chartered under federal and/or state law; (ii) an insurer or governmental guarantor of a First Mortgage; or (iii) a First Mortgagee which is a Federal or State Agency. 2.44 Invitee. The term "Invitee" means any person whose presence within the Project is approved by or is at the request of a particular Owner, including, without limitation, tenants and the family, guests, employees or licensees of Owners or tenants. 2.45 Limited Warranty. The term " Limited Warranty" refers to the D.R. Horton 10- 4-1 Limited Warranty provided by Declarant to the Association for the Association Property conveyed by Declarant and to Owners for Residential Units conveyed by Declarant and is contained in the Owner Maintenance Manual. The Limited Warranty warrants against certain construction defects, failures or deficiencies as specified therein. 2.46 Maintenance Responsibility Chart. The term "Maintenance Responsibility Chart" refers to Exhibit "C" attached hereto and incorporated herein which designates the components of the Project to be maintained by the Association and the Owners, respectively. The Maintenance Responsibility Chart may be further modified or supplemented in a Supplementary Declaration. 2.47 Maintenance Obligations. The term "Maintenance Obligations" refers to the Association's obligations and each Owner's obligations to perform (i) all reasonable 3778561.5 7 CC&RS 31096-51 — WPfliAlegria at Spanish Walk Non -Order Search Doc: RV:2007 00544311 Page 14 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM maintenance consistent with the terms of the Association Maintenance Manual and Owner Maintenance Manual, respectively, any maintenance obligations and schedules in any warranty offered by Declarant or any manufacturer, and any maintenance obligations and schedules otherwise provided to the Association or the Owners by Declarant or any manufacturer, as applicable; (ii) any commonly accepted maintenance practices intended to prolong the life of the materials and construction of the Association Property, Common Area and Residential Units, as applicable; and (iii) any maintenance obligations and requirements set forth in this Declaration and Community Declaration, as updated and amended from time to time. 2.48 Member. The term "Member" means every person or entity who holds a membership in the Association. 2.49 Module. The term "Module" means each module designated on the Condominium Plans. Each Module is a three-dimensional portion of the Property and has been created pursuant to California Government Code Section 66427. The lower and upper boundaries of each Module are set forth in the Condominium Plan. The lateral boundaries of each Module are vertical planes which are also described and depicted in the Condominium Plans. The Module includes all land and Improvements (whether now or hereafter located within its boundaries) and are shown and described on the Condominium Plan. 2.50 Mortgage. The term "Mortgage" means a recorded mortgage or deed of trust encumbering a Condominium in the Project. 2.51 Mortgagee. The term "Mortgagee" means a mortgagee under a Mortgage as well as a beneficiary under a deed of trust. 2.52 Notice and Hearing. The term "Notice and Hearing" means the procedure which gives an Owner notice of an alleged violation of the Governing Documents and the opportunity for a hearing before the Board. 2.53 Operating Rules. The term "Operating Rules" refers to those Association Rules that constitute an operating rule under California Civil Code Section 1357.100 et seq. 2.54 Owner. The term "Owner" means the record owner, whether one or more persons or entities, including Declarant, of any Condominium excluding those having such interest merely as security for the performance of an obligation. 2.55 Owner Maintenance Manual. The term "Owner Maintenance Manual" refers to the manual which may be prepared by Declarant or its consultants and provided to each Owner, specifying obligations for maintenance of the Residential Units by the Owners, as updated and amended from time to time. 2.56 Person. The term "Person" means a natural individual or any legal entity recognized under California law. When the word "person" is not capitalized, the word refers only to natural persons. 3778561.5 CC&RS 31096-51 — WPH/A1cgria at Spanish Walk 8 Non -Order Search Doc: RV:2007 00544311 Page 15 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 2.57 Phase. The term "Phase" refers to that portion of the Property which is the subject of a separate Public Report issued by the DRE and which has been made subject hereto (Le., by annexation with respect to Phases subsequent to the first Phase). 2.58 Protect. The term "Project" means all of the Property together with all Improvements situated thereon. 2.59 Property. The term "Property" means all of the real property described in Exhibit "A" of this Declaration, and such Additional Property as may hereafter be brought within the jurisdiction of the Association. 2.60 Public Report. The term "Public Report" means the Final Subdivision Public Report issued by the DRE for a Phase in the Project. 2.61 Regular Assessments. The term "Regular Assessments" means the assessments which are levied pursuant to the provisions of ARTICLE 6 of this Declaration. 2.62 Residential Unit. The term "Residential Unit" means the elements of a Condominium which are not owned in common with the other Owners of Condominiums in the Project, such Residential Units and their respective elements and boundaries being shown and particularly described in the Condominium Plan. The dimensions of a Residential Unit are measured from the unfinished floor, walls, ceiling, except as otherwise noted herein. The Residential Unit includes all Improvements situated within its boundaries, and includes, without limitation. (i) interior walls (except interior bearing walls), (ii) the interior undercoated surfaces of bearing walls and perimeter walls, floors and ceilings, (iii) any interior door, exterior doors and windows, (iv) appliances, cabinets, interior doors, and all electrical, heating, plumbing and other utility fixtures, (v) the openings and outlets of all Utility Facilities that are located partially within the Residential Unit and partially in the Common Area, such as electrical outlets, and that exclusively serve the Residential Unit, (vi) all Utility Facilities serving solely that Residential Unit, whether located in the Residential Unit or the Common Area, and (vii) the fire box of any fireplace located in the Residential Unit. The following are not part of any Residential Unit: bearing walls, columns, floors, roofs and foundations, and Utility Facilities that serve two or more Condominiums wherever located. In interpreting deeds and plans, the then existing physical boundaries of a Residential Unit, whether in its original state or reconstructed in substantial conformance with the original plans thereof, shall be conclusively presumed to be its boundaries rather than the boundaries expressed in the Condominium Plan or any other recorded document, regardless of settling or lateral movements of the building and regarding of minor variance between boundaries shown on the Condominium Plan or any other recorded document and those of the building. 2.63 Spanish Walk Community. The term "Spanish Walk Community" refers to all of the real property and improvements which are or will be subject to the Community Declaration. 2.64 Special Assessments. The term "Special Assessments" means the assessments which are levied pursuant to the provisions of ARTICLE 6 of this Declaration. 3778561.5 CC&RS 3I096-5I — WPWAtegria at Spanish Walk 9 Non -Order Search Doc: RV:2007 00544311 Page 16 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 2.65 Supplementary Condominium Plan. The term "Supplementary Condominium Plan" means any Condominium Plan which supplements a previously recorded Condominium Plan and/or which is subsequently recorded to designate the boundaries of any Exclusive Use Easement Areas. A Supplementary Condominium Plan shall also include a Condominium Plan which is recorded by the Declarant (i) to correct technical errors in the originally recorded Condominium Plan, or (ii) after the completion of construction to show the actual "as -built" locations or dimensions of any component of the Project, which Supplementary Condominium Plan described in subsections (i) and (i1) above shall not require the consent of the Owners or the Association. 2.66 Supplementary Declaration. The term "Supplementary Declaration" means those certain declarations of covenants, conditions and restrictions, or similar instruments, which may do any or all of the following: (a) annex all or a portion of the Additional Property and/or designate Condominiums as a Phase, (b) identify areas referenced in this Declaration to be maintained by the Association, (c) make such other complementary additions and/or modifications necessary to reflect the different character of the Additional Property, (d) impose additional covenants and restrictions on the Additional Property, and/or (e) make technical or minor corrections to the provisions of this Declaration or previously recorded supplementary declaration(s). 2.67 Utility Facilities. The term "Utility Facilities" means all utility facilities including intake and exhaust systems. storm and sanitary sewer systems, drainage systems, ducting systems for ventilation and utility services, domestic water systems, natural gas systems, heating and air conditioning systems, electrical systems, fire protection water and sprinkler systems, telephone systems, cable television systems, telecommunications systems, water systems, sump pumps, pool equipment, central utility services and all other utility systems and facilities reasonably necessary to service any Improvement situated in, on, over and under the Project. 2.68 VA. The term "VA" means the Department of Veterans Affairs of the United States of America and any department or agency of the United States government which succeeds to VA's function of issuing guarantees of notes secured by Mortgages on residential real estate. 2.69 Voting Power. The term "Voting Power" refers to the voting power of the Association set forth in Section 5.2 of this Declaration. ARTICLE 3 OWNERSHIP AND EASEMENTS 3.1 Ownership Of Condominium. Ownership of each Condominium within the Project shall include (a) fee title to a Residential Unit, (b) an undivided interest in the Common Area located within the Building Envelope in which the Residential Unit is situated, as shown on the Condominium Plan and the deed to the Condominium, (c) a membership in the Association and the Community Association, and (d) subject to the terms of the Community Governing Documents, Governing Documents, any exclusive or non-exclusive easement or easements appurtenant to such Condominium over the Common Area and/or Association Property as 3778561.5 CC&RS 31096-51 — WPHIAIegia al Spanish Walk 10 Non -Order Search Doc: RV:2007 00544311 Page 17 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM described in this Declaration, the Condominium Plan, and the deed to the Condominium and the Community Declaration. 3.2 No Separate Conveyance. The interest of each Owner in the use and benefit of the Common Area and Association Property shall be appurtenant to the Condominium owned by the Owner. No Condominium shall be conveyed by the Owner separately from the interest in the Common Area or the right to use the Association Property. Any conveyance of any Condominium shall automatically transfer the interest in the Common Area and the Owner's right to use the Association Property and Common Area as provided in this Declaration without the necessity of express reference in the instrument of conveyance. 3.3 Delegation of Use. Any Owner entitled to the right and easement of use and enjoyment of the Association Property and the Common Area may delegate such Owner's rights provided in this Declaration to use and enjoyment of the Association Property and the Common Area to its other tenants, contract purchasers or subtenants who reside in such Owner's Condominium, subject to reasonable regulation by the Board. An Owner who has made such a delegation of rights shall not be entitled to use or enjoyment of the Association Property and the Common Area for so long as such delegation remains in effect, other than such access rights as are directly related to the Owner's rights and duties as landlord. 3.4 Easements. The ownership interests in the Common Area, Association Property and Residential Units, and each Owner's right of ingress and egress over the Common Area and Association Property described in this Article, are subject to the easements and the rights of the Association granted and reserved in this Declaration, Community Declaration and the other Governing Documents. Each of the easements reserved or granted under this Declaration shall be deemed to be established upon the recordation of this Declaration and shall henceforth be deemed to be covenants running with the land for the use and benefit of the Owners, the Condominiums, the Association, the Association Property, and the Common Area, superior to all other encumbrances applied against or in favor of any portion of the Project. Individual grant deeds to Condominiums may, but shall not be required to, set forth the easements specified in this Article. 3.4.1 Declaration Subject to Easements. Notwithstanding anything herein expressly or impliedly to the contrary, this Declaration and the Project shall be subject to all easements and rights -of -way shown on the Condominium Plan, Final Map, the Community Declaration and all other easements of record. 3.4.2 Utilities. There are reserved and granted for the benefit of the Residential Units, the Association Property and the Common Area, over, under, across and through the Project, reciprocal, non-exclusive easements for the maintenance, repair and replacement of the Utility Facilities. 3.4.3 Encroachment. There are hereby reserved and granted for the benefit of the Residential Units, the Association Property and the Common Area, over, under, across and through the Project, reciprocal, non-exclusive easements for encroachment, support, maintenance, repair, occupancy and use of such portions of the Residential Units, Association Property and/or Common Area as are encroached upon, used or occupied as a result of any 3778561.5 CC&RS 31096-51 — WPH/Alegria of Spanish Walk 11 Non -Order Search Doc: RV:2007 00544311 Page 18 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM original construction design, accretion, erosion, addition, deterioration, decay, errors in original construction, movement, settlement, shifting or subsidence of any building, structure, or other improvements or any portion thereof, or any other cause. In the event any portion of the Project is partially or totally destroyed, the encroachment easement shall exist for any replacement structure that is rebuilt pursuant to the original construction design. The easement for the maintenance of the encroaching improvement shall exist for as long as the encroachments exists; provided, however, that no valid easement of encroachment shall be created due to the willful misconduct of the Association or any Owner. Any easement of encroachment may, but need not be, cured by repair and restoration of the structure. 3.4.4 Association Easement. The Association shall have an easement over the Common Area for performing its duties and exercising its powers described in the Governing Documents, and for performing repairs or maintenance not performed by the Owner pursuant to the terms of this Declaration. 3.4.5 Association Right of Entry. The Association and the Association's agents shall have the right to enter upon the Residential Unit as set forth in Section 4.3.4 of this Declaration. 3.4.6 Easements for Association Property and/or Common Area. Subject to the provisions of the Governing Documents, including the rights of the Association described below, every Owner shall have, for himself or herself and such Owner's Invitees, a non- exclusive easement of access, ingress, egress, use and enjoyment of, in, to and over the Association Property and Common Area. (a) Suspend Rights of Members. The Association shall have the right, after Notice and Hearing, to temporarily suspend an Owner's rights as a Member pursuant to the terms of this Declaration, including the right to use any recreational facilities for a period not to exceed sixty (60) days unless such rights are suspended for failure to pay assessments. (b) Dedicate or Grant Easements. The Association shall have the right, without the consent of the Owners, to dedicate and/or grant easements over all or any portion of the Association Property and the Common Area. (c) Control Parking. Subject to the provisions of this Declaration the Association shall have the right to control parking within the Association Property and/or Common Area and to promulgate rules and regulations to control parking in a manner consistent with this Declaration. (d) Limit Guests. The Association shall have the right (i) to limit, on a reasonable basis, the number of guests and tenants of the Owners using the recreational and other facilities situated within the Association Property and the Common Area, and (ii) to charge reasonable admissions or other fees for special or extraordinary use of such facilities. Any such limitation or restrictions shall be set forth in the Association Rules. 3.4.7 Easements for Drainage and Runoff. Each Residential Unit shall have an easement for drainage through the established drainage pipes and facilities. Such easements shall be subject to the restrictions set forth in the Section 7.6 of this Declaration. 3778561.5 CC&RS 31496-51 — WPIIIAlegia al Spanish Walk 12 Non -Order Search Doc: RV:2007 00544311 Page 19 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 3.4.8 Easement To Declarant. Declarant shall have and hereby expressly reserves the easements necessary for Declarant and its ,agents, employees and independent contractors to exercise Declarant's rights set forth in ARTICLE 10 of this Declaration and to perform its obligations under any warranty provided by Declarant to an Owner. 3.5 Light, Air and View. No Owner shall have an easement for light, air or view over the Residential Unit of another Owner and no diminution of light, air or view by any Building or Improvement now existing or hereafter erected shall entitle the Owner or any Invitee to claim any easement for light, air or view within the Project. 3.6 Right of Access. Every Owner shall have the right to enjoy free and unobstructed passage between every such Owner's Residential Unit, through the Association Property and Common Area to all publicly dedicated streets bordering the Project, subject to any restrictions imposed by any city, county or state and subject to any reservations in the deed, map, Governing Documents and Community Declaration. ARTICLE 4 THE ASSOCIATION 4.1 The Organization. The Association is a nonprofit mutual benefit corporation formed under the Nonprofit Mutual Benefit Law of the State of California. On the conveyance of the first Condominium to an Owner under a Public Report, the Association shall be charged with the duties and invested with the powers set forth in the Governing Documents. 4.2 Association Action; Board of Directors and Officers; Members' Approval. Except as to matters requiring the approval of Members as set forth in the Governing Documents, the affairs of the Association shall be conducted by the Board and such officers as the Board may elect or appoint. Such election or appointment shall be in accordance with the Governing Documents. Except as otherwise provided in this Declaration, the Articles and the Bylaws, all matters requiring the approval of Members shall be deemed approved if (i) Members holding a majority of the total Voting Power consent to them in writing as provided in the Bylaws, (ii) such matters are approved by a majority vote of a quorum of Members at any regular or special meeting held in accordance with the Bylaws or, (iii) in certain situations set forth in Section 4.4 of this Declaration, such matters as are approved in accordance with the procedures set forth in Section 4.4. 4.3 Powers of the Association. The Association shall have all the powers of a nonprofit corporation organized under the Nonprofit Mutual Benefit Corporation Law of California subject only to such limitations on the exercise of such powers as are set forth in the Governing Documents. It shall have the power to do any lawful thing that may be authorized, required, or permitted to be done by the Association under the Governing Documents, and to do and perform any act that may be necessary or proper for or incidental to, the exercise of any of the express powers of the Association, including, without limitation, the powers set forth below. Notwithstanding the foregoing, the Association shall not undertake any of the activities described in Section 4.5 below. 3778561.5 CC&RS 31096-5I — WPH/Akgria at Spanish Walk 13 Non -Order Search Doc: RV:2007 00544311 Page 20 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 4.3.1 Assessments. The Association shall have the power to establish, fix, and levy assessments against the Owners and to enforce payment of such assessments, in accordance with the provisions of the Governing Documents. 4.3.2 Right of Enforcement and Notice and Hearing. The Association in its own name and on its own behalf, can commence and maintain actions for damages or to restrain and enjoin any actual or threatened breach of any provision of the Governing Documents or any resolutions of the Board, and to enforce by mandatory injunction, or otherwise, all of these provisions. In addition, the Association can temporarily suspend the membership rights and privileges and/or can assess monetary penalties against any Owner or other person entitled to exercise such rights or privileges for any violation of the Governing Documents or Board resolutions, in accordance with the procedures set forth in this Declaration and in the Bylaws. 4.3.3 Delegation of Powers, Professional Management. The Association can delegate its powers, duties, and responsibilities to committees or employees, including a professional managing agent, subject to the requirements of Section 4.6 of this Declaration. 4.3.4 Right of Entry and Enforcement. Except in the case of emergencies in which case no prior notice need be given, the Board or any authorized representative thereof shall have the right, upon forty-eight (48) hours prior notice and during reasonable hours, to enter in or on to the interior or exterior of any Residential Unit for the purpose of (i) construction, maintenance or emergency repair, (ii) enforcing the provisions of this Declaration for the benefit of the Common Area and/or Association Property, or (iii) maintaining and repairing the improvements located within said Residential Unit as provided in this Declaration. Such persons shall not be deemed guilty of trespass by reason of such entry. 4.3.5 Easements and Rights of Way. The Association, may grant and convey to any third party easements and licenses for use and rights of way in, on, over or under any Common Area and/or Association Property in accordance with the provisions of this Declaration. The affirmative vote of Members owning a majority of the Condominiums shall be required before the Board may grant exclusive use of any portion of the Association Property to any Member unless the grant of exclusive use is one of the exceptions to the Member approval requirement listed in California Civil Code Section 1363.07. A vote on a proposed grant of exclusive use shall be by secret ballot in accordance with the procedures set forth in California Civil Code Section 1363.03 and the rules adopted by the Board pursuant thereto. 4.3.6 Dedication. The Association may dedicate any of the Association Property to an appropriate public authority for public use as provided for in this Declaration. 4.3.7 Capital Improvements. Subject to the terms of this Declaration, the Association may approve the construction, installation or acquisition of a particular capital improvement to the Association Property. 4.3.8 Personal Property. The Association may acquire and hold, as trustee for the benefit of its Members, tangible and intangible personal property and to dispose of the same by sale or otherwise, subject to the limitations set forth in Section 4.5.2 below. 3778561.5 CC&RS 31096-5I - WPWAlegiia at Spanish Walk 14 Non -Order Search Doc: RV:2007 00544311 Page 21 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 4.3.9 Enter Into Subsidy or Maintenance Agreements. The Association shall have the power to enter into maintenance or subsidy agreements with Declarant. 4.3.10 Contract for Goods and Services. The Association shall have the power to contract for goods and services for the benefit of the Project that are necessary for the Association to perform its duties and obligations hereunder, subject to the limitations set forth in Section 4.5 below. 4.3.11 Borrow Funds. The Association shall have the right to borrow money to improve, repair or maintain the Common Area and/or Association Property and to hypothecate any or all real or personal property owned by the Association, including pledging as collateral the assessment liens levied thereon provided that, the borrowing of any money or hypothecation of any real or personal property in excess of five percent (5%) of the budgeted gross expenses of the Association shall require the approval by written ballot of at least sixty-seven percent (67%) of each class of Members. 4.3.12 Rights Regarding Title Policies. if any title claims regarding the Association Property are made by any third party, the Association shall have the power to pursue such claims on any title insurance policy held by the Owners or the Association and each Owner hereby delegates, on a non-exclusive basis, and assigns to the Association any rights it may have under its title insurance policies to the extent that the title claim relates to the Association Property. 4.3.13 Claims and Actions. Subject to the provisions of this Declaration, the Association shall have the power, but not the duty, to initiate, defend, settle, release or intervene in mediation, arbitration, judicial or administrative proceedings on behalf of the Association in matters pertaining to (a) the application or enforcement of this Declaration, (b) any and all claims, causes of action, damages and suits for defects relating in any way to the design or construction of the Association Property or the Common Area or any portion thereof on behalf of all Owners and (c) Limited Warranty claims that may arise with respect to the Association Property or the Common Area; provided, however, that no representative of Declarant on the Board shall vote on the initiation of any claim under California Civil Code Section 895 et. seq., such that from and after the first election of directors in which the Class A Members of the Association participate, Declarant shall have no control over the Association's ability to decide whether to initiate a claim under such statutory provisions and in the event of such a vote, the affirmative vote of the two non -Declarant representatives on the Board shall be binding so long as a quorum of the Board is present at any meeting where such vote is taken. An Owner may only assert Limited Warranty claims pertaining to such Owner's individual Residential Unit. The Association and not the individual Members shall have the power to pursue Limited Warranty claims or any claims or other actions using the non -adversarial procedures for construction defects in Association Property or the Common Area pursuant to California Civil Code Section 895 et seq. Each Owner hereby agrees to designate such authority to the Association and assigns to the Association all power and authority as is necessary for any settlement or release of any such claims. Any recovery by the Association with respect to any damage to or defect in the Association Property shall be utilized solely for the purpose of paying for the costs of obtaining the recovery and, if applicable, for correcting damage or defect. 3778561.5 CC&RS 31096-51 — WPH/Alegria at Spanish Walk 15 Non -Order Search Doc: RV:2007 00544311 Page 22 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 4.4 Duties of the Association. In addition to the powers described above, and without limiting their generality, the Association, has the obligation to perform each of the duties set forth below. 4.4.1 Water and Other Utilities. The Association shall have the duty to acquire, provide and pay for water and other services for the Association Property and the Common Area to the extent necessary. 4.4.2 Utility Suppliers. The Association shall have the duty to permit utility suppliers and other providers of any telecommunications or other services to use portions of the Common Area and/or Association Property reasonably necessary to the ongoing development and operation of the Project. 4.4.3 Maintenance of Project. The Association shall landscape, maintain and/or replace and repair the Common Area and/or Association Property and any other portions of the Project described in ARTICLE 8 of this Declaration pursuant to the provisions of this Declaration and the other Governing Documents. Notwithstanding the foregoing, the contractors or subcontractors of Declarant may be contractually obligated to maintain the landscaping or other Improvements on the Association Property pursuant to warranties or other existing contractual obligations of Declarant. The Association shall not interfere with the performance of such warranty or other contractual maintenance obligations. Maintenance performed by such contractors or subcontractors of Declarant shall not serve to postpone the commencement of Regular Assessments pursuant to this Declaration, nor entitle an Owner to claim any offset or reduction in the amount of such Regular Assessments. 4.4.4 Members' Approval of Certain Actions. In the event that any claim or other actions brought by the Association against Declarant, including but not limited to claims brought under California Civil Code Section 895 et seq. involving allegations of construction defects relating to the Association Property or the Common Area is not resolved pursuant to the non -adversarial procedures set forth in California Civil Code Sections 910 through 938, the Association shall not initiate a further action or arbitration proceeding under Section 17.4 of this Declaration or otherwise without first obtaining the consent of the Owners other than Declarant constituting a majority of the Voting Power. 4.4.5 Association Rules. The Board shall adopt, amend and repeal the Association Rules as it deems reasonable. The Association Rules shall govern the Project. However, the Association Rules shall not be inconsistent with or materially alter any provisions of the Governing Documents or the Community Governing Documents. A copy of the Association Rules, as adopted, amended or repealed, shall be mailed or otherwise delivered to each Owner. In case of any conflict between any of the Association Rules and any other provisions of this Declaration, the conflicting Association Rule shall be deemed to be superseded by the provisions of the Governing Documents and the Community Governing Documents. Notwithstanding the foregoing, with regard to the Operating Rules, the Association shall comply with the requirements and procedures set forth in California Civil Code Section 1357.100 et seq. 3778561.5 CC&RS 31096-51 — WPHYA1e6ria at Spanish Walk 16 Non -Order Search Doc: RV:2007 00544311 Page 23 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 4.4.6 Insurance. The Association shall have the duty to obtain, from reputable insurance companies licensed to do business in California and maintain the insurance described in the ARTICLE 11 of this Declaration. 4.4.7 Notice Prior to Litigation. The Association shall notify all Owners of any litigation filed for or on behalf of the Association pursuant to the provisions of Section 17.4 of this Declaration. The notice shall include a proposed budget for the litigation and an explanation of the source of the funds for the litigation. Such notice shall provide an explanation of why the litigation is being initiated or defended, and shall include a budget for the litigation (including, without limitation, experts' fees and costs, consultants' fees and costs and the costs of the proceedings.) The notice must state that the members have a right to review an accounting for the litigation provided in Section 1365.5 of the California Civil Code, which will be available at the Association office. 4.4.8 Financial Matters. The Association shall have the duty to prepare annual Budgets, reports, balance sheets and operating statements for the Association as required under the Governing Documents. 4.4.9 Use of Proceeds to Repair. If the Association receives, on its own behalf or for the benefit of the Owners, any proceeds as a result of any construction defect or other claims or litigation brought by the Association, then the Association shall apply such proceeds first for the purpose of repairing such defects or replacing reserve funds previously utilized by the Association to cause such repairs and then, to the costs of such litigation. Any excess proceeds shall be applied as determined by the Board, subject to any requirements established by the non-profit mutual benefit laws of the State of California and any other applicable laws. 4.4.10 Limited Warranty. The Association shall have the duty to execute any necessary documents to effectuate the Limited Warranty as to the Association Property and the Common Area. In addition, in the event of a claim asserted under the Limited Warranty involving the Association Property or the Common Area, the Association shall comply with any and all requirements set forth in the Limited Warranty including but not limited to providing written notice of any claim to the Declarant and reasonable access to the Association Property or the Common Area for warranty service and shall maintain a copy of the Limited Warranty in the records of the Association. 4.4.11 Warranties. The Board shall comply with the terms of any warranty in favor of the Association for any equipment or facilities within the Association Property or Common Area. The Association acknowledges that certain warranties require the Association to maintain certain maintenance contracts in effect and, to the extent the Board discontinues such maintenance contracts, the effectiveness of the warranty may be impaired or eliminated. 4.4.12 Maintenance Manuals. The Association shall maintain at the offices of the Association a copy of the Owner Maintenance Manual provided by Declarant to the Owners and shall make available to every Owner upon request a copy of the Owner Maintenance Manual for the Owners' Residential Units. The Association shall have the right to charge the requesting Owner a fee for the copying of such Owner Maintenance Manual. The Association shall also comply with provisions of the Association Maintenance Manual provided by Declarant to the 3778561.5 CC&RS 31096-51 — WPH/Alegia al Spanish Walk 17 Non -Order Search Doc: RV:2007 00544311 Page 24 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM Association. The Board may, from time to time, make appropriate revisions to the Owner Maintenance Manual and the Association Maintenance Manual based on the Board's review thereof, to update such manual to provide for maintenance according to current industry practices so long as such changes do not reduce the useful life or functionality of the items being maintained. 4.5 Limitations on Authority of Board. The Board shall not take any of the actions listed below except with the vote or written consent of (a) a majority of the Members of each of Class A and Class B during the time the Class B voting structure set forth in Section 5.2 of this Declaration is in effect; or (b) except with the vote at a meeting of the Association, or by written ballot without a meeting pursuant to California Corporations Code Section 7513, of at least a majority of the Members of the Association including at least a majority of Association Members other than Declarant after conversion to a single Class A voting membership. 4.5.1 Limit on Capital Improvements. The Board shall not, without obtaining the consent of the Members as set forth above, incur aggregate expenditures for capital improvements to the Common Area and/or Association Property in any Fiscal Year in excess of five percent (5%) of the budgeted gross expenses of the Association for that Fiscal Year. 4.5.2 Limit on Sales of Association Property. The Board shall not, without obtaining the consent of the Members as set forth above, sell during any Fiscal Year property of the Association having an aggregate fair market value greater than five percent (5%) of the budgeted gross expenses of the Association for that Fiscal Year. 4.5.3 Limit on Compensation. The Board shall not, without obtaining the consent of the Members as set forth above, pay compensation to members of the Board for services performed in the conduct of the Association's business. However, the Board may cause a member of the Board to be reimbursed for expenses incurred in carrying on the business of the Association. 4.5.4 Limit on Third Person Contracts. The Board shall not, without obtaining the consent of the Members as set forth above, enter into a contract with a third person wherein the third person will furnish goods or services for the Common Area and/or Association Property for a term longer than one (1) year with the following exceptions: (a) A management contract, the terms of which have been approved by the Federal Housing Administration or Veterans Administration; (b) A contract with a public utility company if the rates charged for the materials or services are regulated by the Public Utilities Commission; provided, however, that the term of the contract shall not exceed the shortest term for which the supplier will contract at the regulated rate; (c) A prepaid casualty and/or liability insurance policy not to exceed three (3) years duration; provided that the policy permits short -rate cancellation by the insured; 3778561.5 CC&RS 31096.51 — WPFVAIegia at Spanish Walk 18 Non -Order Search Doc: RV:2007 00544311 Page 25 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM (d) A contract for a term not to exceed three (3) years that is terminable by the Association after no longer than one (1) year without cause, penalty or other obligations upon ninety (90) days written notice of termination to the other party; (e) A contract approved by the DRE; and (t) Any maintenance agreement for the maintenance of any portion of the Association Property or Common Area which is required as a condition to the effectiveness of any warranty in favor of the Association. 4.5.5 Property Manager. The Association Manager shall at all times be a professional manager operating as an independent contractor. The Association shall have the right to designate a portion of the Association Property for use as an on -site manager's office. 4.6 Contracts. Any agreement for professional management of the Project employment contract or lease of recreational or parking areas or facilities or any agreement providing for services of the Declarant or any contract or lease, including franchises and licenses to which Declarant is a party shall be for a term not to exceed one (1) year without the consent of a majority of each class of Members; provided, however, that in no event shall such an agreement exceed a term of three (3) years. Any such agreement shall provide that the agreement may be terminated by either party without cause and without payment of a termination fee upon not more than ninety (90) days written notice. 4.7 Personal Liability. No member of the Board, or of any committee of the Association, or any officer of the Association, or any manager, or Declarant, or any agent or employee or consultant of Declarant (each a "Management Party"), shall be personally liable to any Owner, or to any other party, including the Association, for any error or omission of any Management Party if such person or entity has, on the basis of such information as may be possessed by him or her, acted in good faith without willful or intentional misconduct. In addition to the foregoing, as more particularly specified in California Civil Code Section 1365.7, any person who suffers bodily injury, including, without limitation, emotional distress or wrongful death as a result of the tortious act or omission of a member of the Board who resides in the Project either as a tenant or as an Owner of no more than two (2) Residential Units, and who, at the time of the act or omission, was a "volunteer" as defined in California Civil Code Section 1365.7, shall not recover damages from such Board member, if such Board member committed the act or omission within the scope of its Association duties, while acting in good faith and without acting in a willful, wanton or grossly negligent manner, provided that all of the requirements of California Civil Code Section 1365.7, have been satisfied. ARTICLE 5 MEMBERSHIP AND VOTING RIGHTS IN ASSOCIATION 5.1 Memhershi 5.1.1 Qualifications. Each Owner of a Condominium which is subject to assessment, including Declarant, shall be a Member of the Association. Ownership of a Condominium or interest in it shall be the sole qualification for membership in the Association. Each Owner shall remain a Member of the Association until its ownership interest in the 3778561.5 CC&RS 31096.51 — WPWAlegia at Spanish Walk 19 Non -Order Search Doc: RV:2007 00544311 Page 26 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM Condominiums in the Project ceases at which time its membership in the Association shall automatically cease. Persons or entities who hold an interest in a Condominium merely as security for performance of an obligation are not to be regarded as Members. 5.1.2 Members' Rights and Duties. Each Member shall have the rights, duties, and obligations set forth in the Governing Documents, as the same may from time to time be amended. 5.1.3 Transfer of Membership. The Association membership of each person or entity who owns, or owns an interest in, one or more Condominiums shall be appurtenant to each such Condominium, and shall not be assigned, transferred, pledged, hypothecated, conveyed or alienated in any way except on a transfer of title to each such Condominium or interest in it and then only to the transferee. Any attempt to make a prohibited transfer shall be void. Any transfer of title to a Condominium or interest in it shall operate automatically to transfer the appurtenant membership right in the Association to the new Owner. 5.1.4 Commencement of Voting Rights. An Owner's right to vote, including Declarant, shall not vest until Regular Assessments have been levied upon such Owner's Condominium as provided in this Declaration. All voting rights shall be subject to the restrictions and limitations provided for herein and in the other Governing Documents. 5.2 Number of Votes. The Association shall have two (2) classes of voting membership as described below. The voting rights described in Sections 5.2.1 and 5.2.2 below shall constitute the Voting Power of the Association: 5.2.1 Class A Members. Class A Members shall be all Owners, with the exception of Declarant (until the conversion of Declarant's Class B membership to a Class A membership as provided in Section 5.2.2 below), and shall be entitled to one (1) vote for each Condominium owned. When more than one (1) person holds an interest in any Condominium, all such persons shall be Members. The vote for such Condominium shall be exercised as they among themselves determine, but in no event shall more than one (1) vote be cast with respect to any Condominium. 5.2.2 Class B Members. Class B Member(s) shall be Declarant who shall be entitled to three (3) votes for each Condominium owned. The Class B membership shall cease and be converted to Class A membership on the happening of the earlier of the following to occur: (a) On the second anniversary of the first close of escrow of a Condominium in the Phase covered by the most recently issued Public Report for any Phase of the Project; or (b) The fourth anniversary of the first close of escrow of a Condominium covered by the original Public Report for the first Phase of the Project. As long as Class B membership exists, no action by the Association that must have the prior approval of the Members shall be deemed approved by the Members unless approved by the appropriate percentage of Class A and Class B Members, except as set forth in Section 4.4.4 of 3778561.5 CC&RS 31096-51 — WPHIAIeria at Spanish Wolk 20 Non -Order Search Doc: RV:2007 00544311 Page 27 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM this Declaration entitled Members' Approval of Certain Actions. Upon conversion to a single Class A voting membership, any action by the Association that must have the prior approval of the Members will require approval by at least a majority of the Members of the Association including at least a majority of Members other than Declarant. 5.2.3 Joint Owner Votes. The voting rights for each Condominium may not be cast on a fractional basis. If the joint Owners of a Condominium are unable to agree among themselves as to how their voting rights shall be cast, they shall forfeit the vote on the matter in question. If any Owner exercises the voting rights of a particular Condominium, it will be conclusively presumed for all purposes that such Owner was acting with the authority and consent of all other Owners of the same Condominium. if more than one (1) person or entity exercises the voting rights for a particular Condominium, their votes shall not be counted and shall be deemed void. ARTICLE 6 ASSESSMENTS 6.1 Creation of Lien and Personal Obligation for Assessments. Declarant, for each Condominium owned by Declarant within the Property, hereby covenants, and each Owner of a Condominium by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association all assessments levied pursuant to the provisions of this Declaration and Community Declaration. All assessments levied hereunder, together with interest, costs and reasonable attorneys' fees assessed hereunder, shall be a charge on the land and shall be a continuing lien upon the Condominium against which each such assessment is made, the lien to be effective upon recordation of a notice of delinquent assessments. Each such assessment, together with interest, costs and reasonable attorneys' fees, shall also be the personal obligation of the person who was the Owner of such Condominium at the time when the assessment fell due and shall bind his heirs, devisees, personal representatives and assigns. Unlike the lien for non -delinquent assessments, the personal obligation for delinquent assessments shall not pass to successive Owners, unless expressly assumed by such successive Owner. No such assumption of personal liability by a successive Owner (including a contract purchaser under an installment land contract) shall relieve any Owner against whose Condominium the lien was levied from personal liability for delinquent assessments. If more than one person or entity was the Owner of a Condominium, the personal obligation to pay such assessment or installment respecting such Condominium shall be both joint and several. 6.2 Purpose of Assessments. The assessments levied by the Association shall be used exclusively to perform the obligations and duties of the Association, including, without limitation, the improvement and maintenance of the Association Property and Common Area and for any other maintenance responsibilities of the Association, and to reimburse the Association for the costs incurred in bringing an Owner into compliance with the Governing Documents. The Association shall not impose or collect any assessment, penalty or fee that exceeds the amount necessary for the purpose or purposes for which it is levied. 3778561.5 CC&RS 31096-51 — WPH/Alevia at Spanish Walk 21 Non -Order Search Doc: RV:2007 00544311 Page 28 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 6.3 Regular Assessments. 6.3.1 Payment of Regular Assessments. Regular Assessments for each Fiscal Year shall be established when the Board approves the Budget for that Fiscal Year, which Budget shall be prepared in accordance with the provisions of this Declaration. Regular Assessments shall be levied on a Fiscal Year basis. Unless otherwise specified by the Board, Regular Assessments shall be due and payable in monthly installments on the first day of each month during the term of this Declaration. Declarant's obligation or subsidy for such Regular Assessments may be reduced in accordance with the terms of' any maintenance or subsidy agreement executed by Declarant and the Association. 6.3.2 Budgeting. Regardless of the number of Members or the amount of assets of the Association, each year the Board shall prepare, approve and make available to each Member a Budget as described in the Article of the Bylaws entitled "Budget and Financial Statements." not less than thirty (30) days nor more than ninety (90) days prior to the beginning of the Fiscal Year or as otherwise required by law. 6.3.3 Restrictions for Tax Exemption. As long as the Association seeks to qualify and be considered as an organization exempt from federal and state income taxes pursuant to Internal Revenue Code Section 528 and California Revenue and Taxation Code Section 23701t and any amendments thereto, then the Board shall prepare its annual Budget and otherwise conduct the business of the Association in such a manner consistent with federal and state requirements to qualify for such status. 6.3.4 Assessments After Annexation. (a) Reallocation of Assessments. After conveyance of the first Condominium in a Phase, the assessments in the Budget shall be reallocated among all Condominiums in the Project, including those in the annexed Additional Property, in the same manner as described above. (b) Revision of Budget. Notice of the new Regular Assessment to be levied against each Condominium in the Project shall be delivered by the Association to the Owners and Declarant within sixty (60) days after the close of escrow for the first Condominium sold in the new Phase. 6.3.5 Non -Waiver of Assessments. If before the expiration of any Fiscal Year the Association fails to fix Regular Assessments for the next Fiscal Year, the Regular Assessment established for the preceding year shall continue until a new Regular Assessment is fixed. 6.4 Special Assessments. If the Board determines that the estimated total amount of funds necessary to defray the Common Expenses of the Association for a given Fiscal Year is or will become inadequate to meet expenses for any reason, including, without limitation, unanticipated delinquencies, costs of construction, unexpected repairs or replacements of capital improvements on, damage and destruction or condemnation of, the Common Area, Association Property or any other areas which the Association is obligated to maintain, the Board shall determine the approximate amount necessary to defray such expenses, and if the amount is 3778561.5 CC&RS 31096-51 — WPH/Alcgria at Spanish Walk 22 Non -Order Search Doc: RV:2007 00544311 Page 29 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM approved by a majority vote of the Board and does not exceed five percent (5%) of the budgeted gross expenses of the Association, it shall become a Special Assessment. Any Special Assessment in excess of five percent (5%) of the budgeted gross expenses of the Association shall be subject to the limitations set forth in Section 6.7 below. The Board may, in its discretion, prorate such Special Assessment over the remaining months of the Fiscal Year or levy the assessment immediately against each Condominium. Unless exempt from federal or state income taxation, all proceeds from any Special Assessment shall be segregated and deposited into a special account and shall be used solely for the purpose or purposes for which it was levied or it shall be otherwise handled and used in a manner authorized by law or regulations of the Internal Revenue Service or the California Franchise Tax Board in order to avoid, if possible, its taxation as income of the Association. 6.5 Capital Improvement Assessment. In addition to any other assessments provided for hereunder, the Association may levy a Capital Improvement Assessment for the purpose of defraying, in whole or in part, the cost of any construction or replacement of a capital improvement in accordance with the provisions of Section 4.3.7 of this Declaration. Capital Improvement Assessments shall be due and payable by all Owners in such installments and during such period or periods as the Board shall designate. increases in Capital Improvement Assessments shall be subject to the limitations set forth in Section 6.7 below. 6.6 Enforcement Assessments. The Association may levy an Enforcement Assessment against any Owner for bringing an Owner or its Condominium into compliance with the provisions of the Governing Documents, and/or any other charge designated an Enforcement Assessment in the Governing Documents, together with attorneys' fees, interest and other charges related thereto as provided in this Declaration. If the Association undertakes to provide materials or services which benefit individual Owners, then such Owners in accepting such materials or services agree that the costs thereof shall be an Enforcement Assessment. The Board shall have the authority to adopt a reasonable schedule of Enforcement Assessments for any violation of the Governing Documents. If, after Notice and Hearing as required by the Governing Documents and which satisfies Section 7341 of the California Corporations Code and Section 1363 of the California Civil Code, the Owner fails to cure or continues such violation, the Association may impose an additional fine each time the violation is repeated, and may assess such Owner and enforce the Enforcement Assessment as herein provided for nonpayment of an assessment. A hearing committee may be established by the Board to administer the foregoing. Notwithstanding any other provision in this Declaration to the contrary, except as provided in Section 6.12.1 of this Declaration, Enforcement Assessments are assessments but they may not become a lien against the Owner's Condominium that is enforceable by a power of sale under California Civil Code Sections 2924, 2924b and 2924c. This restriction on enforcement is not applicable to late payment penalties for delinquent assessments or charges imposed to reimburse the Association for loss of interest or for collection costs, including reasonable attorneys' fees, for delinquent assessments. 6.7 Changes to Assessments. 6.7.1 Limitation on Assessments. From and after January 1st of the year immediately following the conveyance of the first Condominium to an Owner, other than Declarant, the maximum annual Regular Assessment may not, except in the case of an 3778561.5 CC&RS 31096-51 — WPWAlcgria at Spanish Walk 23 Non -Order Search Doc: RV:2007 00544311 Page 30 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM Emergency (as hereinafter defined) or to the extent allowed under applicable law, as provided under the DRE approved budgets for the Project, be increased by an amount greater than twenty percent (20%) of the Regular Assessments for the preceding Fiscal Year and Special Assessments and Capital Improvement Assessments shall not be imposed that in the aggregate exceed five percent (5%) of the budgeted gross expenses of the Association for that Fiscal Year, without the consent of the Members, constituting a quorum and casting a majority of the votes at a meeting or election of the Association conducted in accordance with the provisions of (i) California Civil Code Section 1363.03 and the rules adopted by the Board pursuant thereto and (ii) California Corporations Code Sections 7510 et seq. and 7613. The Board may not increase the Regular Assessments for any Fiscal Year unless it has complied with California Civil Code Section 1366. For the purpose of this Section, a quorum shall mean a majority of the Owners of the Association and an Emergency shall mean any one of the following: (a) an extraordinary expense required by an order of a court; (b) an extraordinary expense necessary to repair or maintain the Common Area, Association Property or any part of the Project which is the responsibility of the Association to maintain where a threat to personal safety on the Project is discovered; or (c) an extraordinary expense necessary to repair or maintain the Common Area and Association Property or any part of the Project for which the Association is responsible to maintain that could not have been reasonably foreseen by the Board in preparing and distributing the Budget required under this Declaration and the Bylaws and California Civil Code Section 1365; provided, however, that prior to the imposition or collection of a Regular Assessment under this Section, the Board shall pass a resolution containing written findings as to the necessity of the extraordinary expense which is involved and why the expense was not or could not have been reasonably foreseen in the budgeting process, and the resolution shall be distributed to the Members with the notice of Regular Assessment. For the purpose of calculating whether an increase to Regular Assessments exceeds twenty percent (20%), the term "Regular Assessments" shall be deemed to include the amount assessed against each Condominium by the Association as a Regular Assessment plus any amount paid by the Declarant as a subsidy pursuant to any subsidy agreements, to the extent such subsidy payments offset any amount which would otherwise be paid by Owners as Regular Assessments. Any increases authorized under this Section shall not be imposed unless the Board has complied with the budgetary requirements set forth in ARTICLE 9 of the Bylaws with respect to the Fiscal Year for which an assessment is being levied. 6.7.2 Notice to Owners. The Association shall provide notice by first class mail to the Owners of any increase in the Regular Assessments or Special Assessments of the Association, not less than thirty (30) days and not more than sixty (60) days prior to the increased assessment becoming due and payable. 6.8 Uniform Rate of Assessment. Regular and Special Assessments and Capital Improvements Assessments shall be fixed at a uniform rate for all Condominiums and may be collected on a monthly basis and shall be determined by dividing the amount of the assessment by the total number of Condominiums then within the Project and subject to assessment. Enforcement Assessments shall be levied directly to the individual Condominiums. 3778561.5 CC&RS 31096-51 — WPHIAIcgria at Spanish Walk 24 Non -Order Search Doc: RV:2007 00544311 Page 31 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 6.9 Date of Commencement of Regular Assessments; Due Dates. The Regular Assessments provided for herein shall commence as to all Condominiums in a Phase subject to this Declaration on the first day of the month following the conveyance of the first Condominium within such phase to an Owner under authority of a Public Report. As to any Additional Property which is thereafter annexed into the Project pursuant to a Supplementary Declaration, the Regular Assessments shall commence as to all of the Condominiums within such Phase upon the first day of the first month following the closing of the sale of the first Condominium in such Phase or such earlier date as may be selected by Declarant for the commencement of assessments in such Phase. In no event shall any sale or leaseback to Declarant of any Condominium in the Project being used as a model home, sales office, design center, construction office or similar purpose (collectively, a "Model Home") and which are not occupied by a homeowner cause the commencement of assessments in a Phase for which assessments have not otherwise commenced through a sale of a Condominium in such a Phase to an Owner who will occupy such Condominium. Notwithstanding the foregoing, Declarant may elect to commence to pay Regular Assessments on a Phase prior to the conveyance in such Phase to an Owner under a Public Report and, in such case, Declarant shall have the voting rights as to the Condominiums in such Phase pursuant to Section 5.2.2 of this Declaration. 6.10 Notice and Assessment Installment Due Dates. A single ten (10) day prior written notice of each Special Assessment and Capital Improvement Assessment shall be given to each Owner. The due dates for the payment of installments normally shall be the first day of each month unless some other due date is established by the Board. Each installment of Regular Assessments, Special Assessments and Capital Improvement Assessments shall become delinquent if not paid within fifteen (15) days after its due date. There shall accrue with each delinquent installment a late charge, interest charge to be set by the Board and reasonable costs of collection, including attorneys' fees, but which shall not, in any event, exceed the maximum rates permitted under California Civil Code Section 1366. 6.11 Estoppel Certificate. The Board on not less than ten (10) days prior written request shall execute, acknowledge and deliver to the party making such request in writing stating both of the following: (i) whether or not to the knowledge of the Association, a particular Owner is in default in connection with the payment of Assessments as to such Owner's Condominium under the provisions of this Declaration; and (ii) the dates to which installments of Regular Assessments, Special Assessments and/or Capital Improvement Assessments, have been paid as to such Condominium. Any such statement may be relied on by any prospective purchaser or Mortgagee of the Condominium, but reliance on such statement may not extend to any default not involving the payment of assessments of which the signer had no actual knowledge. 6.12 Collection of Assessments, Liens. 6.12.1 Right to Enforce. The right to collect and enforce assessments is vested in the Board acting for and on behalf of the Association. The Board can enforce the obligations of the Owners to pay assessments provided for in this Declaration by commencement and maintenance of a suit at law or in equity, or the Board may foreclose by judicial proceedings or through the exercise of the power of sale pursuant to Section 6.12.6 enforce the lien rights created. Suit to recover a money judgment for unpaid assessments together with all other 3778561.5 CC&RS 31096-51 — WPH/Alegia al Spanish Walk 25 Non -Order Search Doc: RV:2007 00544311 Page 32 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM Additional Charges described in Section 6.13 shall be maintainable without foreclosing or waiving the lien rights. Notwithstanding anything else to the contrary herein a monetary penalty imposed by the Association as a disciplinary measure for failure of a Member to comply with the Governing Documents or as a means of reimbursing the Association for costs incurred by the Association in the repair of damage to Association Property and facilities for which the Member was allegedly responsible or in bringing the Member and its Residential Unit into compliance with the Governing Documents of the Association may not be characterized nor treated as an assessment which may become a lien against the Member's Condominium enforceable by a sale of the interest hereunder. The limitation in the preceding sentence however, does not apply to any Additional Charges. 6.12.2 Notice of Assessments and Foreclosure. The Association shall distribute a written notice regarding assessments and foreclosure as set forth in California Civil Code Section 1365.1 during the sixty (60) day period immediately preceding the beginning of the Association's Fiscal Year. 6.12.3 Delinquent Assessments. In collecting delinquent assessments, the Association shall comply with the requirements of California law, including without limitation, California Civil Code Section 1367.1. As of the date of this Declaration, such laws require that, among other things, before the Association records a lien against the Owner's Condominium, the Association: (i) notify the delinquent Owner of certain matters, and (ii) offer and, if requested by the Owner, participate in, dispute resolution procedures pursuant to the Association's "meet and confer" program required in California Civil Code Sections 1363.810 through 1363.850. 6.12.4 Creation of Lien. If there is a delinquency in the payment of any assessment, or installment on a Condominium, any amounts that are delinquent, together with the late charge described in California Civil Code Section 1366, interest at the rate permitted in such Section, and all costs that are incurred by the Board in the collection of the amounts, including reasonable attorneys' fees, shall be a lien against such Condominium upon the recordation in the Office of the County Recorder of a notice of delinquent assessment as provided in, and subject to the requirements of, California Civil Code Section 1367.1. 6.12.5 Assignment. The Association may not voluntarily assign or pledge the Association's right to collect payments or assessments, or to enforce or foreclose a lien to a third party except where provided under California Civil Code Section 1367.1(g). 6.12.6 Notice of Default; Foreclosure. The Board can record a notice of default and, subject to the requirements and limitations of California Civil Code Section 1367.4, can cause the Condominium with respect to which a notice of default has been recorded to be sold either in the same manner as a sale is conducted under California Civil Code Sections 2924, 2924b and 2924c or through judicial foreclosure as provided in California Civil Code Section 1367.1. However, as a condition precedent to the holding of any such sale under Section 2924c, appropriate publication shall be made. In connection with any such sale, the Board is authorized to appoint a trustee for purposes of conducting the sale. If a delinquency is cured before sale of the Condominium or before completing a judicial foreclosure, or if it is determined that a lien previously recorded against a Condominium was recorded in error, the Board shall apply payments and follow the procedures set forth in California Civil Code 3778561.5 CC&RS 31096.51 — WP1i/Alcgria at Spanish Walk 26 Non -Order Search Doc: RV:2007 00544311 Page 33 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM Section 1367.1. On becoming delinquent in the payment of any assessments or installments, each delinquent Owner shall be deemed to have absolutely assigned all rent, issues and profits of its Condominium to the Association and shall further be deemed to have consented to the appointment of a receiver (which appointment may, at the election of the Association, be enforced by the Association through specific performance). The Association, acting on behalf of the Owners, shall have the power to bid upon the Condominium at foreclosure sale and to acquire, hold, lease, mortgage and convey the Condominium and vote as an Owner of the Condominium. 6.12.7 Payment of Assessments. Any payments of sums due under this Article shall first be applied to assessments owed, and only after assessments owed have been paid in full shall the payments be applied to the fees and costs of collections, attorney's fees, late charges or interest. If any Owner requests a receipt after payment of a delinquent assessment, the Association shall provide a receipt which sets forth the date of payment and the individual who received such payment. 6.13 Additional Charges. In addition to any other amounts due or any other relief or remedy obtained against an Owner who is delinquent in the payment of any assessments, each Owner agrees to pay Additional Charges incurred or levied by the Board including such additional costs, fees, charges and expenditures as the Association may incur or levy in the process of collecting from that Owner monies due and delinquent, subject to California Civil Code Section 1366. Additional Charges shall include, but not be limited to, the following: 6.13.1 Attorneys' Fees. Reasonable attorneys' fees and costs incurred in the event an attorney(s) is employed to collect any assessment or sum due, whether by suit or otherwise; 6.13.2 Late Charges. A late charge in an amount to be fixed by the Board in accordance with California Civil Code Section 1366 to compensate the Association for additional collection costs incurred in the event any assessment or other sum is not paid when due or within any "grace" period established by law; court; 6.13.3 Costs of Suit. Costs of suit and court costs incurred as are allowed by the 6.13.4 Interest. Interest to the extent permitted by law; and 6.13.5 Other. Any other additional costs that the Association may incur in the process of collecting delinquent assessments or sums. 6.14 Waiver of Exemptions. Each Owner, to the extent permitted by law, waives, to the extent of any liens created pursuant to this Article, the benefit of any homestead or exemption laws of California in effect at the time any assessment, or installment, becomes delinquent or any lien is imposed. 6.15 Subordination of Lien to First Mortgages. When a Notice of Delinquent Assessment has been recorded, such assessment shall constitute a lien on such delinquent Owner's Condominium prior and superior to all other liens, except, (a) all taxes, (b) bonds, 3778561.5 CC&RS 31096-51 - WPFUAlegria at Spanish Walk 27 Non -Order Search Doc: RV:2007 00544311 Page 34 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM assessments and other levies which, by law, would be superior thereto, and (c) any First Mortgage now or hereafter placed upon any Condominium subject to assessment. The sale or transfer of any Condominium pursuant to judicial or nonjudicial foreclosure (excluding a transfer by a deed in lieu of foreclosure) of a First Mortgage shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer. No sale or transfer shall relieve such Condominium from any assessments thereafter becoming due or from the lien of any subsequent assessment. Where the Mortgagee of a First Mortgage or other purchaser of a Condominium obtains title to the same as a result of foreclosure (excluding a transfer by a deed in lieu of foreclosure), such acquiror of title, its successors and assigns, shall not be liable for the share of the Common Expenses or assessments by the Association chargeable to such Condominium that became due prior to the acquisition of title to such Condominium by such acquiror, except for a share of such charges or assessments resulting from a reallocation of such charges or assessments which are made against all Condominiums. 6.16 No Offsets. All assessments shall be payable in the amounts specified by the particular assessment and no offsets against such amounts shall be permitted for any reasons, including, without limitation, a claim that the Association is not properly exercising its duties of maintenance, operation or enforcement. 6.17 Personal Liability of Owner. No Owner may exempt himself or herself from personal liability for assessments, nor any part thereof, levied by the Association, nor release the Condominium owned by itself from the liens and charges hereof by waiver of the use and enjoyment of the Association Property and facilities thereof, or by abandonment of such Owner's Condominium. 6.18 Transfer of Property. After transfer or sale of property within the Project, the selling Owner or Owners shall not be liable for any assessment levied on such Owner or Owner's Condominium after the date of such transfer of ownership and written notice of such transfer is delivered to the Association. The selling Owner shall still be responsible for all assessments and charges levied on its property prior to any such transfer. 6.19 Failure to Fix Assessments. The omission by the Board to fix the assessments hereunder before the expiration of any year, for that or the next year, shall not be deemed either a waiver or modification in any respect of the provisions of this Declaration or a release of the Owner from the obligation to pay the assessments or any installment thereof for that or any subsequent year, but the assessment fixed for the preceding year shall continue until a new assessment is fixed. 6.20 Property Exempt From Assessments. The Association Property shall be exempt from the assessments, charges and liens created herein. Although no land or improvements devoted to dwelling use in the Project shall be exempt from assessments by the Association, Declarant and the Owners shall be exempt from paying any portion of Regular Assessments which is for the purpose of defraying expenses and reserves directly attributable to the existence of any Improvements on the Association Property which are not complete at the time assessments commence, which exemption shall be in effect only until the earlier to occur of the following: (i) a notice of completion for the subject Association Property has been recorded, or (ii) the Association Property has been placed into use. 3778561.5 CC&RS 31096-51 — WPHIAIegria at Spanish Walk 28 Non -Order Search Doc: RV:2007 00544311 Page 35 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 6.21 Common Area/Association Property Improvements. In the event that the Improvements to be installed by Declarant on the Common Area and/or Association Property have not been completed prior to the issuance by the DRE of a Final Subdivision Public Report covering the subject property, and in the further event that the Association is the obligee under a bond to secure performance by the Declarant to complete such Improvements, then if such Improvements have not been completed and a notice of completion filed within sixty (60) days after the completion date specified in the planned construction statement appended to the bond, the Board shall consider and vote upon the question of whether or not to bring action to enforce the obligations under the bond. If the Association has given an extension in writing for the completion of any such Improvement, then the Board shall consider and vote on said question if such Improvements have not been completed and a notice of completion filed within thirty (30) days after the expiration of the extension period. In the event that the Board determines not to take action to enforce the obligations secured by the bond, or does not vote on the question as above provided, then, in either such event, upon petition signed by Members representing five percent (5%) or more of the Voting Power of the Association, excluding the Voting Power of Declarant, the Board shall call a special meeting of the Members of the Association to consider the question of overriding the decision of the Board or of requiring the Board to take action on the question of enforcing the obligations secured by the bond. Said meeting of Members shall be held not less than thirty-five (35) days nor more than forty-five (45) days following receipt of the petition. At said meeting a vote of a majority of the Voting Power of Members of the Association, excluding the vote of Declarant, to take action to enforce the obligations under the bond shall be deemed to be the decision of the Association, and the Board shall thereafter implement the decision by initiating and pursuing appropriate action in the name of the Association. 6.22 Initial Capital Contributions. Upon acquisition from Declarant of record title to a Condominium, such Owner shall contribute to the capital of the Association an amount equal to two (2) months the amount of the then monthly Regular Assessment for the Condominium. This amount shall be deposited by the Owner into the purchase and sale escrow for his or her Condominium and disbursed therefrom to the Association. ARTICLE 7 USE RESTRICTIONS 7.1 Restrictions of Community Declaration. The provisions set forth in this ARTICLE 7 are in addition to the restrictions set forth in the Community Declaration and each Owner shall, in addition to complying with the restrictions set forth in this Declaration, comply with the restrictions set forth in the Community Declaration, all of which are incorporated by reference into and made a part of this Declaration. To the extent that any restriction in the Community Declaration requires the approval of the Declarant, the Community Association and/or the Board, then, for purpose of compliance with this Declaration, Owner shall, in addition to obtaining the necessary approvals under the Community Declaration also obtain approval from the Declarant, the Board and/or the Architectural Committee under this Declaration. In the event of any conflict between this Declaration and the Community Declaration, the more restrictive provision shall apply. 3778561.5 CC&RS 31096-51 — WPWAleyria at Spanish Walk 29 Non -Order Search Doc: RV:2007 00544311 Page 36 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 7.2 Residential Use. Condominiums shall be used for residential purposes only; provided, however, that any Condominium may be used incidentally for the purpose of operating a home based small business if, and only if, (a) the business is operated solely within the Residential Unit, (b) the business is limited to arts and crafts, the rendition of professional services, or other similar activities, (c) the business is operated by the Owner of the Condominium whose principal residence is the Condominium, by a tenant whose principal residence is the Residential Unit or by a member of such Owner's or tenant's family whose principal residence is the Residential Unit, (d) the operation of the business is permitted by, and is at all times in compliance with, all applicable laws and the Community Declaration and (e) the operation of the business does not result in (i) the violation of any of the other provisions of this Declaration, (ii) any unreasonable increase in the flow of traffic within the Project, (iii) any odor, noise, or vibration outside of the Condominium, or (iv) parking problems within the Project. No other use shall be allowed . except as specifically permitted by local ordinance; provided, however, Declarant may use any of the Condominiums owned by Declarant as model homes, sales offices, construction offices or storage for the Project or for the sale of residential units at any other community or project developed by Declarant during that period of time commencing when the Condominiums are first sold or offered for sale to the public and ending when (x) all the Condominiums in the Project are sold and conveyed by Declarant to separate owners thereof, or (y) seven (7) years after the first close of escrow of a Condominium in the Project, whichever shall first occur. 7.3 Rental of Residential Units. An Owner shall be entitled to rent the Condominium subject to the restrictions contained in this Declaration and any contractual agreement between Declarant and each original Owner for such Owner's Residential Unit. Any rental or lease agreement shall be in writing, shall provide that the lease is subject to the Governing Documents and shall provide that any failure to comply with any provisions of the Governing Documents, shall be a default under the terms of the rental or lease agreement. A copy of the Governing Documents and Community Governing Documents shall be made available to each tenant or lessee by the Owner so renting or leasing. A copy of the rental or lease agreement shall, upon request, be provided to the Association. The Owners shall, at all times, be responsible for their tenant's or lessee's compliance with all of the provisions of this Declaration pursuant to the occupancy and use of the Condominium. A lessee shall have no obligation to the Association to pay assessments imposed by the Association nor shall any lessee have any voting rights in the Association. No Owner may lease such Owner's Condominium for hotel, motel or transient purposes. Any lease which is either for a period of fewer than thirty (30) days or pursuant to which the lessor provides any services normally associated with a hotel shall be deemed to be for transient or hotel purposes. 7.4 Parking and Vehicular Restriction. The restrictions set forth in this Section are in addition to the parking restrictions set forth in Section 2.9 of the Community Declaration. The Board may establish regulations regarding parking areas, including designated "parking," and "no parking" areas. The Board may take all actions necessary to enforce all parking and vehicle use regulations for the Property, including removing violating vehicles from the Project pursuant to California Vehicle Code Section 22658.2 or other applicable laws. 3778561,5 CC&RS 31096-51 — WP1i/Ateiria at Spanish Wall 30 Non -Order Search Doc: RV:2007 00544311 Page 37 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 7.5 Installations. 7.5.1 Generally. This Section does not apply to Improvements installed by Declarant. The restrictions set forth in this Section are in addition to the restrictions set forth in Section 2.14 of the Community Declaration. 7.5.2 Inside Installations. Nothing may be done in any Condominium or in, on or to the Association Property or Common Area which may impair the structural integrity of any building in the Project or which structurally alters any such building except as otherwise expressly provided in this Declaration. Portions of floors in upper level Residential Units may be constructed with sound control matting or other noise mitigation measures. Owners desiring to replace floor coverings in upper level Residential Units must obtain the prior written consent of the Board in order to ensure that the replacement flooring and its installation is compatible with the noise mitigation materials installed by Declarant. 7.5.3 Storage and Other Restrictions for Balcony or Patio. No Owner shall use any Exclusive Use Balcony or Patio Area for storage purposes, including, without limitation, the storage of bicycles. Unless installed by Declarant, all plants kept in the Exclusive Use Balcony Areas shall be kept in pots or planters which do not allow water to drain outside of such pot or planter, and no vegetation shall be permitted to extend beyond the railings, walls and/or other boundaries of the Exclusive Use Balcony or Patio Areas, except as approved by the Board. No Owner shall change or alter the surface of any Exclusive Use Balcony or Exclusive Use Patio Areas without the consent of the Board. 7.5.4 Vibrations. No Owner shall install or use in its Residential Unit any fixtures or equipment which will cause unreasonable vibrations, noise or annoyance to the Owners of the other Residential Units. 7.6 Mineral Exploration. No Property within the Project shall be used in any manner to explore for or to remove any water, oil or other hydrocarbons, minerals of any kind, gravel, earth or any earth substance or other mineral of any kind. No well for the production of, or from which there is produced, water, oil or gas shall be operated within the Project, nor shall any machinery, appliance or structure be placed, operated or maintained thereon for use in connection with any trading, manufacturing or repairing business. No slant drilling shall be permitted. 7.7 Drainage and Erosion Control. There shall be no interference with the established drainage pattern over the Property, unless an adequate alternative provision is made for proper drainage with the prior written approval of the Board. For the purpose hereof, "established" drainage is defined as the drainage that exists at the time of the first close of escrow for the sale of a Condominium, or that which is shown on any plans approved by the Board. Each Owner shall regularly inspect and, if necessary, clean out any drainage facilities located within such Owner's Exclusive Use Easement Areas. If such Owner fails to maintain such drainage as a result, imminent danger to person or property may result, then the Association shall have the right of access onto the Condominium for the purpose of clearing debris and other material so as to not impede the flow of water. This right of access shall be exercised only for the purpose of preventing damage to persons and property and the entering party shall use 3778561.5 CC&RS 31096-51 — WPFVAIegria al Spanish Walk 31 Non -Order Search Doc: RV:2007 00544311 Page 38 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM reasonable care so as to not cause any damage to the Condominium. The Owner shall reimburse the Association for any costs and expenses incurred in clearing such debris pursuant to the provisions of this Declaration. 7.8 Compliance with Requirements Regarding Project Storm Water Pollution. Each Owner acknowledges that unlike the water in the sewer system in the Owner's Condominium, which flows to wastewater treatment plans, water that enters a storm drain flows directly, without any treatment, to waterways, creeks, streams, rivers, lakes and/or oceans. Accordingly, the National Pollutant Discharge Elimination System ("NPDES"), the Federal Clean Water Act, and the policies and ordinances of the City prohibit discharging anything other than natural rain water into storm drainage systems, including gutters and streets which drain into storm drains. Toxic chemicals or hydrocarbon compounds such as gasoline, motor oil, antifreeze, solvents, paints, paint thinners, wood preservatives, fertilizers, lawn clippings, yard waste, detergents, pet waste, paints and other such materials and pollutants shall not be discharged into any street, public or private, gutters, or into storm drains or storm water conveyance systems. The disposal of such pollutants and materials into a storm drain system may result in significant penalties and fines and such Owner may be responsible for any activities by Owner's contractors (e.g., painters, landscapers, etc.) who dispose of such pollutants from an Owner's Residential Unit or Exclusive Use Easement Area into a storm drain system. Use and disposal of pesticides, fungicides, herbicides, insecticides, fertilizers, and other such chemicals shall meet all requirements of any other governmental agencies having jurisdiction over the Property. All Owners within the Project and the Association are required to comply with such restrictions. Owners are encouraged to consult with the City, and other governmental authorities, concerning the proper disposal of any toxic or hazardous materials. 7.8.1 Storm Water Pollution Prevention Best Management Practices. To comply with the requirements of the City in connection with the storm water pollution prevention best management practices, each Owner and the Association agrees that it will, at all times, maintain all Improvements located within a Residential Unit, or in the case of the Association, within the Association Property, in a clean, safe and attractive condition, free and clear of any and all debris. All trash receptacles within Owner's Residential Unit shall be closed at all times except when disposing of trash. The Association and the Owners shall comply with all applicable Best Management Practices ("BMP") and perform all maintenance that may be imposed by any water quality management plan that may affect the Property. The costs of the Association's portion of such maintenance, if any, shall be treated as Common Expenses. 7.8.2 Liability to Declarant. So long as Declarant owns any Condominium, if an Owner or the Association is not in compliance with the provisions of this Section and, as a result, Declarant may incur any liability, Declarant shall have the right but not the obligation to enter upon the Residential Unit or Exclusive Use Easement Area to correct such violation. Any Owner who violates the requirements of this Section and the Association shall indemnify, protect, defend and hold Declarant and Declarant's officers, directors, successors and assigns entirely free and harmless from and against any liabilities, penalties, costs, expenses and actions, including, without limitation, attorneys' fees and costs arising from or attributed to a violation of the provisions of this Section and shall within fifteen (15) days after request from Declarant, reimburse Declarant for any costs and expenses incurred by Declarant in correcting any violation by any Owner of this Section. 3778561.5 CC&RS 31096.51 — WPWAlegia al Spanish Walk 32 Non -Order Search Doc: RV:2007 00544311 Page 39 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 7.9 Post Tension Slabs. The concrete slabs for the Condominium Building in the Project are reinforced with a grid of steel cables which were installed in the concrete and then tightened to create very high tension. This type of slab is commonly known as a "Post Tension Slab." Cutting into a Post Tension Slab for any reason (e.g. to install a floor safe, to remodel plumbing, etc.) is very hazardous and may result in serious damage to the Condominium and/or personal injury. By accepting a grant deed to a Condominium in the Project, each Owner specifically covenants and agrees that: (l) such Owner shall not cut into or otherwise tamper with the Post Tension Slab; (2) such Owner shall not knowingly permit or allow any person to cut into or tamper with the Post Tension Slab so long as such Owner owns any interest in the Condominium; (3) such Owner shall disclose the existence of the Post Tension Slab to any tenant, lessee or subsequent purchaser of the Condominium; and (4) such Owner shall indemnify, protect, defend and hold Declarant and its respective officers, employees, contractors and agents, free and harmless from and against any and all claims, damages, losses, or other liability (including, without limitation, attorneys' fees) arising from any breach of this Section. 7.10 Compliance with Laws, Etc. Nothing shall be done or kept in any Residential Unit or in the Association Property or Common Area that might increase the rate of, or cause the cancellation of, insurance for the Project, or any portion of this Project. No Owner or the Association shall permit anything to be done or kept in its Residential Unit or the Association Property and/or Common Area that violates any law, ordinance, statute, rule or regulation of any local, county, state or federal body, including any laws, ordinances or statutes pertaining to the use or storage of any hazardous, contaminated or toxic materials. ARTICLE 8 MAINTENANCE 8.1 Maintenance Obligations of Owners. 8.1.1 Maintenance of Condominiums. Each Owner is responsible for the care and maintenance of those components of each Owner's Residential Unit and Exclusive Use Easement Area designated for maintenance by the Owner on the Maintenance Responsibility Chart. (a) Quality of Maintenance. All such maintenance shall be performed in such a manner as shall be deemed necessary in the judgment of the Board to preserve the attractive appearance thereof, protect the value thereof and to maintain the established system of drainage and in compliance with all requirements of the Owner Maintenance Manual, the Maintenance Obligations in this Article, the Maintenance Responsibility Chart and the Community Declaration. Any such maintenance, repair or replacement of any of the foregoing which is visible from outside of a Residential Unit shall be consistent with the existing design, aesthetics and architecture of the Project and shall be approved by the Board, as provided in ARTICLE 9 of this Declaration and the Community Association as provided in Article 5 of Community Declaration. The Board and its agents shall, after giving reasonable notice, have the right to enter any Residential Unit to inspect the established system of drainage located thereon, provided that the Association repairs any damage which might result from such inspection. 3778561.5 CC&RS 31096-51 — . W PHfAlegria at Spanish Walk 33 Non -Order Search Doc: RV:2007 00544311 Page 40 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM (b) Compliance with Maintenance Obligations. By accepting a deed to a Condominium, Owner acknowledges and agrees that each Owner is required to comply with all of the Maintenance Obligations and schedules set forth in the Owner Maintenance Manual and each Owner is further obligated to provide a copy of all documents describing Maintenance Obligations to any successor purchaser of such Owner's Condominium. 8.2 No Alterations. Subject to the provisions of ARTICLE 9 of this Declaration no bearing walls, demising walls, ceilings, floors, other structural or utility bearing portions of the Condominium Buildings housing the Residential Units nor walls enclosing any Exclusive Use Easement Area may be pierced or otherwise altered or repaired without approval from the Board and the Community Board if such alterations can be seen from the exterior of the Condominium. 8.3 Owner's Failure to Maintain. If an Owner fails to maintain the areas and items as provided above or make repairs thereto in such manner as shall be deemed necessary in the judgment of the Board to preserve the attractive appearance thereof and protect the value thereof, the Board shall give written notice to such Owner, stating with particularity the work or maintenance or repair which the Board finds to be required and requesting that the same be carried out within a period of thirty (30) days from the giving of such notice. In the event the Owner fails to carry out such maintenance or repair within the period specified by the notice, the Board shall cause such work to be completed and shall assess the cost thereof to such Owner as an Enforcement Assessment in accordance with the procedures set forth in this Declaration. 8.4 Maintenance Obligations of Association. The Association is responsible for the care and maintenance of those components of the Project designated for maintenance by the Association on the Maintenance Responsibility Chart in accordance with the Maintenance Obligations. The Community Association shall maintain the Community Association Maintenance Areas located within the Property as further set forth in the Community Declaration. The Association shall keep such portions of the Project in good condition and repair, provide for all necessary services and cause all acts to be done which may be necessary or proper to assure the maintenance of such areas. 8.4.1 Association's Compliance with Maintenance Obligations. The Association will comply with the Maintenance Obligations for the Association Property, Common Area and any other areas to be maintained by the Association in accordance with the requirements of the Association Maintenance Manual and the Maintenance Responsibility Chart. The Association's obligations to perform such maintenance in any Phase shall commence on the date Regular Assessments commence on Condominiums in such Phase. Until commencement of Regular Assessments on Condominiums in any Phase, the Common Area and/or Association Property in such Phase shall be maintained by Declarant. 8.4.2 Additional Items. The Association shall also be responsible for maintaining any Improvements that a majority of the Voting Power of the Association designates for maintenance by the Association. 8.4.3 Termite Eradication. If the Association adopts an inspection and preventive program for the prevention and eradication of infestation by wood destroying pests and organisms, the Association, on no less than fifteen (15) nor more than thirty (30) days notice, 3778561.5 CURS 31096-51 — WPWAIcgTia al Spanish Walk 34 Non -Order Search Doc: RV:2007 00544311 Page 41 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM may require each Owner and occupants of the Owner's Condominium to vacate such Condominium to accommodate Association efforts to eradicate such infestation. The notice must state the reason for the temporary relocation, the date and time of the beginning of treatment, the anticipated date and time of termination of treatment, and that the occupants will be responsible for their own accommodations during the temporary relocation. Any damage caused to a Condominium by such entry by the Association or by any person authorized by the Association shall be repaired by the Association as a Common Expense. All costs involved in operating the inspection and preventive program as well as repairing and replacing the Association Property and Improvements thereon when the need for such maintenance, repair or replacement is the result of wood destroying pests or organisms are a Common Expense. 8.5 Future Construction. Nothing in this Declaration shall limit the right of Declarant to complete construction of Improvements to the Association Property and to Condominiums owned by Declarant or to alter them or to construct additional Improvements as Declarant deems advisable before completion and sale of the entire Project. 8.6 Inspection of the Project. The Association shall regularly inspect, maintain and repair the Association Property and the Common Area, including without limitation, the landscaping, drainage and irrigation systems serving or within the Association Property and the Common Area. The Association shall comply with the requirements of any the Association Maintenance Manual. The Association shall also inspect for any misaligned sprinklers or blocked drainage systems which could cause water damage to the Project. The Association shall employ the services of such experts and consultants as are necessary to assist the Association in performing its duties hereunder and follow any recommendations contained in the Association Maintenance Manual. The inspections required to be conducted by the Board under this Article shall take place at least annually. The inspectors shall provide written reports of their inspections to the Association and, if requested by the Declarant, to the Declarant promptly following completion thereof. If requested by Declarant, Declarant shall be invited to attend any such inspections. The written reports shall identify any items of maintenance or repair which either require current action by the Association or will need further review and analysis. Such written reports shall specifically include a review of all irrigation and drainage systems on the Project. The Board shall report the contents of such written reports to Declarant (if not already provided by the inspector directly) so requested by Declarant and to the Members of the Association at the next meeting of the Members following receipt of such written reports or as soon thereafter as reasonably practicable and shall include such written reports in the minutes of the Association meeting. The Board shall promptly cause all matters identified as requiring attention to be maintained, repaired, or otherwise pursued in accordance with prudent business practices and the recommendations of the inspectors and shall keep a record of all such matters in the Board's minutes. Should such inspection require the inspection of any Residential Unit, there is hereby created a non-exclusive easement in favor of the Association, and its officers, agents, employees and independent contractors, to conduct such inspections and to provide such maintenance, repair and replacement, provided that entrance is made at reasonable hours and with at least three (3) days advance notice to the Owner, except in case of emergency. Any damage to any structure, landscaping or other improvements caused by the Association, or any of its officers, agents, employees or independent contractors, while performing such maintenance, repair or replacement work shall be repaired by the Association at its sole cost and expense. 3778561.5 CC&RS 31096-51 — WPH/AIegia al Spanish Walk 35 Non -Order Search Doc: RV:2007 00544311 Page 42 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM ARTICLE 9 ARCHITECTURAL REVIEW 9.1 Non -applicability to Declaration. The provisions of this Article shall not apply to any Improvements installed by the Declarant or repaired pursuant to the Limited Warranty, Customer Care Program or California Civil Code Section 895, et seq. and the Board shall not have any rights of review or approval with respect thereto. 9.2 Amendments. Notwithstanding the Article of this Declaration entitled "Amendments," no amendment, verification or rescission of this Article may be made without the (i) written consent of Declarant, and the (ii) recording of such consent in the Office of the County Recorder. Declarant, or any successor thereof, shall not be prohibited from completing the construction of the Project prior to the conveyance by Declarant, or its successor, of the last Residential Unit 9.3 Scope. To the extent that an Owner is entitled under this Declaration to modify its Residential Unit in any manner following review and approval by the Board, no Improvements of any kind whatsoever shall be commenced, erected, placed or altered upon or around any Residential Unit until the location and the complete plans and specifications showing the nature, kind, shape, height and materials, including the color ("Plans and Specifications"), have been submitted to and approved in writing as to harmony of external design and location to surrounding structures and by the Board. Each Owner acknowledges that any Outdoor Improvements (as defined in Section 2.14 of the Community Declaration) must be approved by the Design Review Committee (as defined in the Community Declaration). Such Outdoor Improvements shall first be approved by the Board under this ARTICLE 9 and then shall be submitted to the Design Review Committee and review and approval. 9.4 Architectural Guidelines. The Board may, from time to time and in accordance with California Civil Code Section 1357.120, et seq. adopt, amend and repeal, by unanimous vote, rules and regulations to be known as "Architectural Guidelines." The Architectural Guidelines shall interpret and implement the provisions hereof by setting forth the standards and procedures for Board review and guidelines for architectural design of Improvements, placement of Improvements, color schemes, exterior finishes and materials and similar features which are recommended for use in the Project; provided, however, that said Architectural Guidelines shall not be in derogation of the standards required by this Declaration. 9.5 Approval of Plans and Specifications. Any Owner proposing to construct Improvements or take other actions requiring the prior approval of the Board pursuant to this Declaration shall first apply to the Board for approval by submission of Plans and Specifications and any other materials required by the Board (including without limitation evidence satisfactory to the Board that the proposed Improvements comply with all applicable laws and building code requirements). 9.5.1 Approval of Solar Energy Systems. Any Owner proposing to install or use a solar energy system, as defined in Civil Code Section 801.5, shall be subject to the same review and approval process as any Owner proposing to construct any Improvements or other actions requiring the approval of the Board pursuant to this Declaration. However, only 3778561.5 CC&RS 3109641 — WPH/A1eyria at Spanish Walk 36 Non -Order Search Doc: RV:2007 00544311 Page 43 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM reasonable restrictions on the installation and use of a solar energy system shall be permitted. Reasonable restrictions on a solar energy system are those restrictions that do not significantly increase the cost of the system or significantly decrease its sufficiency or specified performance, or which allow for an alternative system of comparable costs, efficiency, and energy conservation benefits. 9.5.2 Compliance With California Civil Code Section 1378. In approving Plans and Specifications submitted to it pursuant to this ARTICLE 9, the Board shall comply with the requirements of California Civil Code Section 1378. 9.6 Inspection and Correction of Work. Inspection of work and correction of defects therein shall proceed as follows: 9.6.1 Right of Inspection During Course of Construction. The Board or its duly authorized representative may enter into any Residential Unit, from time to time, as provided below during the course of construction or installation of any Improvements for the purpose of inspecting the construction or installation. If the Board determines that such construction and/or installation is not being done in substantial compliance with the approved Plans and Specifications, it shall notify the Owner of such noncompliance. The Board may not enter into a Condominium without obtaining the prior permission of the Owner or occupant of such Residential Unit; provided, however, that such prior permission shall not be unreasonably withheld and shall be given for entry by the Board during daylight hours within forty-eight (48) hours of the request for entry. 9.6.2 Notice of Completion. Upon the completion of any Improvements for which approved Plans and Specifications are required under this Article, the Owner shall give written notice of completion thereof to the Board. 9.6.3 Inspection. Within thirty (30) days after receiving notice of completion, the Board, or its duly authorized representative, shall have the right to enter into a Residential Unit, as provided in Section 9.6.1 above, to inspect the Improvements to determine whether they were constructed or installed in substantial compliance with the approved Plans and Specifications. If the Board finds that such construction or installation, was not done in substantial compliance with the approved Plans and Specifications, it shall notify the Owner in writing of such non-compliance within such thirty (30) day period, specifying particulars of non- compliance, and shall require the Owner to remedy such non-compliance. 9.6.4 Non -Compliance. If, upon the expiration of thirty (30) days from the date of notification of non-compliance, the Owner shall have failed to remedy such non-compliance, the Board, after affording the Owner Notice and Hearing, shall determine whether there is non- compliance, and if so, the nature thereof and the estimated cost of correcting or removing the same. If non-compliance exists, the Board shall require the Owner to remedy or remove the same within a period of not more than thirty (30) days from the date of the Board ruling. If the Owner does not comply with the Board ruling within such period or within any extension of such period as the Board, in its discretion, may grant, the Board, at its option, may either remove the non -complying Improvement or remedy the non-compliance and the Owner shall reimburse the Association for all expenses incurred in connection therewith upon demand. If such expenses 3778561.5 CC&RS 31096-5I — WPH/A egia al Spanish Walk 37 Non -Order Search Doc: RV:2007 00544311 Page 44 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM are not promptly repaid by the Owner to the Association, the Board shall levy an Enforcement Assessment against such Owner for reimbursement. 9.6.5 Failure to Notify. If for any reason the Board fails to notify the Owner of any non-compliance within sixty (60) days after receipt of the notice of completion from the Owner, the Improvements shall be deemed to be in accordance with said approved Plans and Speci fications. 9.7 Government Regulations. If there is any conflict between the requirements or actions of the Board and the mandatory regulations, ordinances or rules of any governmental entity relating to the Property, the government regulations, ordinances or rules, to the extent that such regulations, ordinances or rules are more restrictive, shall control, and the Board shall modify its requirements or actions to conform to the government regulations, ordinances or rules. The application to and the review and approval by the Board of any Plans and Specifications or other submittals by an Owner shall in no way be deemed to be satisfaction or compliance with any building permit process or other applicable statute or law, or governmental regulation, ordinance or rule or public utility requirements (hereinafter collectively referred to as "Additional Requirements") the responsibility for which shall lie solely with the Owner; provided, however, if the Additional Requirements are less restrictive than the provisions of this Declaration, the provisions of this Declaration shall nonetheless apply. 9.8 Diligence in Construction. Upon approval by the Board of any Plans and Specifications, the Owner shall promptly commence construction of the Improvements and diligently pursue the same to completion. 9.9 Fee for Review. The Board shall have the right to establish a fee for the review and approval of Plans and Specifications that must be submitted to the Board pursuant to the provisions of this Article. The Board shall have the right to hire any engineer or other consultant, the opinion of which the Board deems necessary in connection with its review of any plans submitted by any Owner and such Owner shall be liable for payment of such engineer's and/or consultant's fee. 9.10 Interpretation. All questions of interpretation or construction of any of the terms or conditions herein shall be resolved by the Board, and its decision shall be final, binding and conclusive on all of the parties affected. Notwithstanding the foregoing, in the event an Architectural Committee is appointed and the Architectural Committee disapproves any Plans and Specifications submitted by an Owner pursuant to this Article, the party or parties making such submission may appeal in writing to the Board. The Board must receive the written request for approval not more than thirty (30) days following the final decision of the Architectural Committee. Within thirty (30) days following receipt of the written request for appeal, the Board shall render its written decision. The failure of the Board to render a decision within the thirty (30) day period shall be deemed a decision against the Owner. 9.11 Waiver. The approval by the Board of any Plans and Specifications for any work done or proposed, or for any other matter requiring the approval of the Board under this Declaration, shall not be deemed to constitute a waiver of any right to withhold approval of any similar Plans and Specifications or matter subsequently submitted for approval. 3778561.5 CC&RS 31096-51 — WPH/Alcipia at Spanish Walk 38 Non -Order Search Doc: RV:2007 00544311 Page 45 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 9.12 Estoppel Certificate. Within thirty (30) days after written demand is delivered to the Board by any Owner, and upon payment to the Association of a reasonable fee (as fixed from time to time by the Association), the Board shall deliver an estoppel certificate, approved by a majority of its members and executed by two officers of the Board, certifying (with respect to any Residential Unit of said Owner) that as of the date thereof, either: (a) all Improvements made and other work completed comply with this Declaration, or (b) such Improvements or work do not so comply, in which event the certificate shall also identify the non -complying Improvements or work and set forth with particularity the basis of such non-compliance. Any purchaser from the Owner, or from anyone deriving any interest in said Residential Unit through the Owner, shall be entitled to rely on said certificate with respect to the matters therein set forth, such matters being conclusive as between the Association, Declarant and all Owners and such persons deriving any interest through them. 9.13 Liability. Neither the Board, any Architectural Committee nor any member thereof shall be liable to the Association or to any Owner for any damage, loss or prejudice suffered or claimed on account of (a) the approval or disapproval of any plans, drawings and specifications, whether or not defective; (b) the construction or performance of any work, whether or not pursuant to approved plans, drawings, and specifications; (c) the development of the Project or any property within the Project; or (d) the execution and filing of an estoppel certificate pursuant to Section 9.12 whether or not the facts therein are correct, provided, however, that such Board or Architectural Committee member has acted in good faith on the basis of such information as may be possessed by itself. Without in any way limiting the generality of the foregoing, the Board or Architectural Committee, as the case may be, or any member thereof, may, but is not required to, consult with or hear the views of the Association or any Owner with respect to any plans, drawings, specifications or any other proposal submitted to the Board or Architectural Committee, as the case may be. 9.14 Variances. The Board may authorize variances from compliance with any of the architectural provisions of this Declaration, including, without limitation, restrictions upon height, size, floor area or placement of Improvements or other similar restrictions, when circumstances such as topography, natural obstructions, aesthetic or environmental considerations may require. Such variances may be evidenced in writing, must be signed by at least two (2) officers of the Board and shall become effective upon execution. If such variances are granted, no violation of the covenants, conditions and restrictions contained in this Declaration shall be deemed to have occurred with respect to the matter for which the variance was granted. The granting of such a variance shall not operate to waive any of the terms and provisions of this Declaration for any purpose except as to the particular Residential Unit and particular provision hereof covered by the variance, nor shall it affect in anyway the Owner's obligation to comply with all governmental laws and regulations affecting its use of the Residential Unit, including, without limitation, zoning ordinances and lot setback lines or requirements imposed by the City or any other governmental authority. 9.15 Appointment of Architectural Committee. The Board shall have the right to delegate its review and approval rights under this ARTICLE 9 to an Architectural Committee. If the Board so elects, the Architectural Committee shall consist of three (3) members. One (I) alternate member may be designated by the Board to act as a substitute on the Architectural Committee in the event of absence or disability of any member. In the event the Board appoints 3778561.5 CC&RS 31096-51 - WPH/Alegria al Spanish Walk 39 Non -Order Search Doc: RV:2007 00544311 Page 46 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM an Architectural Committee, all rights hereunder shall apply to the Architectural Committee and all references to the Board shall be deemed to refer to the Architectural Committee. 9.16 Compensation. The members of any Architectural Committee appointed by the Board shall receive no compensation for services rendered, other than reimbursement by the Association for expenses incurred by them in the performance of their duties hereunder, unless the Association retains a professional architect, engineer or designer as a member of the Architectural Committee for the purpose of providing professional services, in which event reasonable compensation for such member shall be approved by the Board. ARTICLE 10 DEVELOPMENT RIGHTS 10.1 Limitations of Restrictions. Declarant is undertaking the work of developing Condominiums and other Improvements within the Project. The completion of the development work and the marketing and sale, rental and other disposition of the Condominiums are essential to the establishment and welfare of the Property and the Additional Property as a first-class condominium community. In order that the work may be completed and the Project be established as a fully occupied condominium community as rapidly as possible, nothing in this Declaration shall be interpreted to deny Declarant the rights set forth in this Article. 10.2 Rights of Access and Completion of Construction. Until the fifth (5th) anniversary of the original issuance of a Public Report for the most recent Phase, Declarant, its contractors and subcontractors shall have the rights set forth below. 10.2.1 Access. Declarant, its contractors and subcontractors shall have the right to obtain reasonable access over and across the Common Area and/or Association Property of the Project or do within any Residential Unit owned by it whatever is reasonably necessary or advisable in connection with the completion of the Project and the marketing and maintenance thereof. 10.2.2 Construct Improvements. Declarant, its contractors and subcontractors shall have the right to erect, construct and maintain on the Common Area and/or Association Property of the Project or within any Residential Unit owned by it such structures or Improvements, including, without limitation, sales offices and signs, as may be reasonably necessary for the conduct of its business to complete the work, establish the Project as a residential community and dispose of interests in the Project by sale, lease or otherwise, as determined by Declarant in its sole discretion. 10.2.3 Grant Easements. Declarant, its contractors and subcontractors shall have the right to establish and/or grant over and across said Common Area and/or Association Property such easements and rights of way on, over, under or across all or any part thereof to or for the benefit of the State of California, the City, the County or any other political subdivision or public organization, or any public utility entity or cable television provider, for the purpose of constructing, erecting, operating and maintaining Improvements thereon, therein or thereunder at that time or at any time in the future, including: (i) roads, streets, walks, driveways, trails, parkways and park areas; (ii) poles, wires and conduits for transmission of electricity, providing 3778561.5 CC&RS 31096-51 — WPFVAlegria at Spanish Walk 40 Non -Order Search Doc: RV:2007 00544311 Page 47 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM telephone service and cable television service to the Project and for the necessary attachments in connection therewith; and (iii) public and private sewers, sewage disposal systems, storm water drains, land drains and pipes, water systems, sprinkling systems, water, heating and gas lines or pipes and any and all equipment in connection therewith. The Common Area and/or Association Property shall be subject to any dedication stated in the Condominium Plan for the Project of an easement for public use for installation, maintenance and operation of facilities for public utilities over all of the Common Area and/or Association Property. Said public utilities easement shall inure and run to all franchised utility companies and to the City, the County and the State and shall include the right of ingress and egress over the Common Area and/or Association Property by vehicles of the City, the County and the State and such utility companies to properly install, maintain, repair, replace and otherwise service such utility facilities. The grant of said public utility easement shall not be interpreted to imply any obligation or responsibility of any such utility company or the City, the County or the State for maintenance or operation of any of the Common Area and/or Association Property or the facilities located thereon or the repair, replacement or reconstruction thereof except for those Improvements owned by the utility companies, the City, the County, or the State, and except as occasioned by the negligence or willful misconduct of the utility companies, the City, the County, or the State. Except for lawful and proper fences, structures and facilities placed upon the Common Area and/or Association Property by utility companies, the Common Area and/or Association Property subject to the public utility easement shall be kept open and free from buildings and structures. The City and County furthermore is granted an easement across the Common Area, Association Property, and any streets for ingress and egress for use by emergency vehicles of the City or County. 10.3 Size and Appearance of Project. Declarant shall not be prevented from increasing or decreasing the number of Residential Units that may be annexed to the Project or from changing the exterior appearance of Common Area and/or Association Property structures, the landscaping or any other matter directly or indirectly connected with the Project in any manner deemed desirable by Declarant, if Declarant obtains governmental consents required by law. 10.4 Marketing Rights. 10.4.1 General Rights. Subject to the limitations of this Declaration and the Community Declaration, Declarant shall have the right to: (i) maintain model homes, sales offices, storage areas and related facilities in any unsold Condominiums or Common Area and/or Association Property within the Project as arc necessary or reasonable, in the opinion of Declarant, for the sale or disposition of the Condominiums or for the sale or disposition of the residences in any other communities or projects developed by Declarant; (ii) make reasonable use of the Common Area and/or Association Property and facilities for the sale of Condominiums; (iii) post signs, flags, balloons and banners and other advertising mediums in connection with its marketing; and (iv) conduct its business of disposing of Condominiums by sale, lease or otherwise. 10.4.2 Agreement for Extended Use. If following the fifth (5th) anniversary of the original issuance of a Public Report for the most recent Phase, Declarant requires exclusive use of any portion of the Common Area and/or Association Property in that Phase for marketing purposes, Declarant may use the Common Area and/or Association Property only if an 3778561.5 CC&RS 31096-51 — WP11/Alcgia at Spanish Walk 41 Non -Order Search Doc: RV:2007 00544311 Page 48 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM agreement is entered into between Declarant and the Association. The agreement must specifically provide for a limited duration for such use and must provide for a specific reasonable rate of compensation to the Association by Declarant. Compensation shall be commensurate with the nature, extent and duration of the use proposed by Declarant. In no event, however, shall Declarant be denied the rights to use the Common Area and/or Association Property and any Condominiums owned by Declarant as an Owner. 10.5 Alterations to Map. At any time within three (3) years from the date that the first Condominium in a Phase is conveyed to an Owner other than Declarant, the boundaries of any Condominium or Common Area in that Phase may be altered by a lot line adjustment or other change reflected on a subsequently recorded Record of Survey, parcel map, final map or amended final map, provided that the altered boundaries are approved by Declarant and all owners of the Property involved in the boundary adjustment (the Board, with respect to property owned by the Association). Any alteration approved by Declarant may make minor changes to the number of Condominiums in the Project. An alteration shall be effective upon recordation of the Record of Survey or map and, upon such recordation, the boundaries of the altered Association Property or Common Area shall be altered for purposes of this Declaration to conform to the boundaries as shown on the Record of Survey or map. 10.6 Title Rights. This Declaration shall not be construed to constitute a limitation on Declarant's title rights to the Additional Property prior to its Annexation, nor shall it impose any obligation on Declarant or any other person or entity to improve, develop or annex any portion of the Additional Property. The rights of Declarant under this Declaration may be assigned to any successor(s) by an express assignment in a recorded instrument, including without limitation, a deed, option or lease. This Declaration shall not be construed to limit the right of Declarant at any time prior to such an assignment to establish additional licenses, reservations and rights -of - way to itself, to utility companies, to the City, to the County, to the State, or to others as may be reasonably necessary to the proper development and disposal of property owned by Declarant. 10.7 Power of Attorney. Each Owner of a Condominium in the Project, by accepting a deed to a Condominium, shall be deemed to have (a) agreed and acknowledged that the Owners own no interest in the Additional Property which may be developed, if at all, by Declarant in its sole and absolute discretion, and (b) irrevocably appointed Declarant, for so long as Declarant owns all or any portion of the Additional Property, as its Attorney -in -Fact, for itself and each of its Mortgagees, optionees, grantees, licensees, trustees, receivers, lessee, tenants, judgment creditors, heirs, legatees, devisees, administrators, executors, legal representatives, successors and assigns, whether voluntary or involuntary, and thereby to have conveyed a Power of Attorney coupled with an interest to Declarant as its Attorney -in -Fact to prepare, execute, acknowledge and record any Condominium Plan or amendment to the Condominium Plan for all or any portion of the Property or Additional Property regardless of whether Declarant owns any interest in the property which is the subject of such Condominium Plan or amendment to such Condominium Plan. However, nothing herein shall be deemed or construed as an agreement by Declarant that any Owner shall be entitled to any participation in or discretion over the preparation and recordation of a Condominium Plan or amendment to a Condominium Plan for all or any portion of the Property or Additional Property. The acceptance or creation of any Mortgage or other encumbrance, whether or not voluntary, created in good faith, or given for 3778561.5 CC&RS 31096-51 — WPH/Alegrin at Spanish Walk 42 Non -Order Search Doc: RV:2007 00544311 Page 49 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM value, shall be deemed to be accepted or created subject to each of the terms and conditions of the Power of Attorney described in this Section. 10.8 Amendment. The provisions of this Article may not be amended without the consent of Declarant until all of the Additional Property has been annexed to the Project and all of the Condominiums in the Project owned by Declarant have been conveyed. 10.9 Supplementary Condominium Plans and Supplementary Declarations. So long as Declarant owns any portion of the Property or the Additional Property, Supplementary Declarations and Supplementary Condominium Plans may be recorded by Declarant, without the consent of any Owner, for any of the purposes for which a Supplementary Condominium Plan or a Supplementary Declaration may be recorded. ARTICLE 11 INSURANCE 11.1 Association's Insurance Obligations 11.1.1 Liability Insurance.. The Association shall obtain and maintain liability insurance providing coverage at least as broad as a current Insurance Services Office, Inc. ("ISO") commercial general liability insurance form or its equivalent (including coverage for medical payments and coverage for owned and non -owned automobiles, if applicable), insuring the Association, the Declarant (as long as Declarant is the Owner of any Condominium and/or has any rights under ARTICLE 10 of this Declaration) and the Owners against liability arising from the ownership, operation, maintenance and use of the Common Area and the Association Property by the Association and the performance by the Association of its duties under this Declaration. Coverage for such matters shall be primary to any coverage provided by any other liability insurance policy maintained by such insureds. The limits of such insurance shall not be less than Three Million Dollars ($3,000,000) and shall at all times meet or exceed the minimum requirements of Section 1365.9 of the California Civil Code. Such insurance shall include coverage against water damage liability, a broad form named insured endorsement, and a cross - liability or severability of interest endorsement insuring each insured against liability to each other insured, if reasonably available as determined by the Board, and may include coverage against any other liability customarily covered with respect to properties similar in construction, location and use, all as may be determined by the Board. 11.1.2 Property Insurance. The Association shall obtain and maintain property insurance for the risks covered by, and providing coverage at least as broad as, a current ISO "special form" policy or its equivalent, insuring (I) all Improvements upon, within or comprising the Common Area, the Association Property and any other areas to be maintained, repaired or replaced by the Association, including fixtures and building service equipment which are part thereof, (2) all personal property owned or maintained by the Association, and (3) any items required to be included under Subsection (c) or (d) below (collectively, the "Association Insured Property"). Such insurance shall be maintained in the amount of the maximum insurable replacement value of the property to be insured thereunder, as determined annually by the Board. 3778561.5 CC&RS 31096-51 — WPIUAlegiia at Spanish Walk 43 Non -Order Search Doc: RV:2007 00544311 Page 50 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM Such coverage may exclude land, foundations, excavations, and other items typically excluded from property insurance coverage on properties similar in construction, location and use. (a) Course of Construction. Whenever any Improvements or alterations to the Association Insured Property are in the course of construction, the insurance required under this Section, to the extent appropriate, as determined by the Association, shall be carried by the Association in builder's risk form written on a completed value basis, insuring against loss to the extent of at least the full replacement value of the Association Insured Property (excluding foundations and footings, except for earthquake coverage) of that which is being covered. (b) Residential Units. The property insurance maintained by the Association shall also cover any portions of the Residential Units not required to be insured by the residential Owners pursuant to Section 11.2, including without limitation, the following items and components installed by Declarant within Residential Units at the time of original construction of the Residential Units (and any equivalent replacements thereof): fixtures, interior walls and doors, ceiling, floor and wall surface materials (e.g. paint, wallpaper, mirrors, carpets, and hardwood floors); cabinets, built-in appliances; heating and air conditioning systems, and water heaters. (c) Payment of Insurance Proceeds. Subject to the rights of Mortgagees, the proceeds from such property insurance shall be payable to the Association or an insurance trustee ("Trustee") to be held and expended for the benefit of the Association and the Owners, Mortgagees and others, as their respective interests shall appear. The Trustee shall be a commercial bank or other financial institution with trust powers in the county in which the Project is located that agrees in writing to accept such trust. If restoration is authorized, the Association will have the duty to contract for such work as provided in this Declaration. (d) Earthquake Insurance. ALL PARTIES ACKNOWLEDGE THAT EARTHQUAKE INSURANCE IS NOT INCLUDED IN THE PROJECT BUDGET AND IS NOT BEING OBTAINED BY DECLARANT FOR THE BENEFIT OF THE OWNERS OR THE ASSOCIATION. NEITHER DECLARANT NOR THE ASSOCIATION IS OBLIGATED TO MAINTAIN EARTHQUAKE INSURANCE ON THE PROJECT OR ANY PORTION THEREOF. Declarant or any Owner (and/or their respective lenders) may maintain earthquake insurance for their own benefit, but the premiums therefor may not be included by Declarant or the Association in the assessments. Notwithstanding the foregoing, at such time as the Board is no longer controlled by Declarant, the Association may, in its discretion, (but without any obligation to do so) obtain earthquake insurance from time to time, on those portions of the Project that are to be insured by the Association as provided above in this Declaration, and if so obtained, the premiums for such insurance may be included in the assessments. All parties acknowledge that earthquake insurance is typically very expensive and if purchased by the Association a material increase in assessments may be required to cover the additional cost of such insurance. (e) Primary. With respect to Association Insured Property, the property insurance maintained by the Association shall be primary and noncontributing with any other property insurance maintained by an Owner covering the same loss. 3778561.5 CC&RS 31096.51 — WPH/Alegria at Spanish Walk 44 Non -Order Search Doc: RV:2007 00544311 Page 51 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM (f) Endorsements. The property insurance policy shall contain, to the extent available on commercially reasonable terms as may be determined by the Board, the following endorsements or their equivalents: agreed amount, boiler and machinery (to the extent applicable), inflation guard, ordinance or law, replacement cost, pollution claims including mold, and such other endorsements as may customarily be obtained with respect to properties similar in construction, location and use, as may be determined by the Board. (g) Adjustment of Losses. The Association shall timely file, pursue and complete the adjustment of all claims arising under the property insurance policies carried by the Association. The Board is appointed attorney -in -fact by each Owner except for the Secretary, U.S. Department of Veterans Affairs, to negotiate and agree on the value and extent of any property damage under any policy carried by the Association. The Board is granted full right and authority to compromise and settle any property damage claim under any policy of property insurance carried by the Association or enforce any such claim by legal action or otherwise and to execute releases in favor of any insurer with respect to any such claim. (h) Waiver of Claims and Subrogation. The Association waives all claims against the Owners for any damage to the Association Insured Property (including without limitation, any loss of use of such property), except that the Association may claim against an Owner for property damage caused by that Owner to the extent that either (i) the peril causing such damage is not covered by the property insurance required by this Declaration to be maintained by the Association or the property insurance actually maintained by the Association (whichever is greater), provided that such Owner's liability for such uninsured damage is limited to the amount of liability insurance required to be maintained by such Owner pursuant to this Declaration; (ii) the peril causing such damage is covered by the Association's property insurance, but the damage is within the amount of the deductible or self -insured retention, provided that such Owner's liability for such damage is limited to the amount of liability insurance required to be maintained by such Owner pursuant to this Declaration; or (iii) such damage is caused by the gross negligence or willful misconduct of that Owner. Any property insurance policy obtained by the Association must contain a waiver of subrogation rights by the insurer consistent with this Section; provided, however, that a failure or inability of the Association to obtain such a waiver from an insurer shall not defeat or impair the waivers between the Association and the Owners as set forth herein. If an Owner is liable for damage under this Section, the Association may, after Notice and Hearing, levy an Enforcement Assessment equal to the cost of repairing the damage or any insurance deductible paid under the Association's insurance policy, as applicable, and the increase, if any, in insurance premiums directly attributable to such damage. The waivers of claims and subrogation set forth in this subsection apply only in favor of the Owners and do not limit or waive, release or discharge any claims that the Association (or its insurers) may have against any third party, including without limitation any contractor, service provider, agent, or Invitee, provided that such waivers shall also apply in favor of an Owner's tenant occupying a Residential Unit under a written lease agreement if and to the extent that the Owner has similarly agreed in such lease agreement to a waiver of claims and subrogation against such tenant. 3778561.5 CC&RS 31096-51 — WPH/Alegria at Spanish Wall: 45 Non -Order Search Doc: RV:2007 00544311 Page 52 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 11.1.3 Fidelity Bond. The Association shall maintain a fidelity bond in an amount equal to the greater of (a) the estimated maximum amount of funds, including reserves, expected to be regularly held by or on behalf of the Association or a managing agent at any given time during the term of the fidelity bond; and (b) three (3) months' aggregate of the Regular Assessments on all Residential Units plus any reserve funds. The bonds shall name the Association as obligee and shall insure against loss by reason of the acts of the employees of the Association, and any managing agent and its employees, whether or not such persons are compensated for their services. 11.1.4 Worker's Compensation Insurance. The Association shall maintain worker's compensation insurance to the extent necessary to comply with all applicable laws. 11.1.5 Directors and Officers Insurance. The Association shall maintain a policy insuring the Association's officers and directors against liability for their acts or omissions while acting in their capacity as officers and directors of the Association. The limits of such insurance shall be not less than One Million Dollars ($1,000,000) and shall at all times meet or exceed the minimum requirements of Section 1365.7 of the California Civil Code. 11.1.6 General Policy Requirements. All insurance policies the Association is required to obtain pursuant to this Article shall be placed and maintained with companies rated at least "A-/VII" by A.M. Best Insurance Service and otherwise reasonably satisfactory to the Association. If an A.M. Best Insurance Service rating is not available, a comparable rating service may be used. Such insurance policies may have reasonable deductible amounts comparable to those customarily maintained with respect to properties similar in construction, location and use, as may be determined by the Board. The coverage amounts required for such insurance policies may be satisfied by any combination of primary and excess policies that collectively serve to satisfy the requirements of this Article. 11.1.7 Copies of Policies. Copies of all insurance policies of the Association shall be retained by the Association and available for inspection by Owners at reasonable times. All such insurance policies shall provide that they shall not be cancelable or substantially modified by the insurer without first giving at least thirty (30) days prior notice in writing to the Owners and Eligible Holders, except that ten (10) days prior written notice shall be required if the cancellation is for non-payment of premiums. In addition to the foregoing, the Association shall provide to the Owners such information regarding the insurance of the Association as may be required by applicable law or under the Bylaws. 11.1.8 Compliance With Federal Regulations. Notwithstanding any other provisions contained herein, the Association shall continuously maintain in effect such insurance and a fidelity bond meeting the minimum insurance and fidelity bond requirements for condominium projects established by the Federal National Mortgage Association ("FNMA"), the Government National Mortgage Association ("GNMA"), and the Federal Housing Authority ("FHA"), Federal Home Loan Mortgage Corporation ("FHLMC"), or any successor to those entities, so long as any of the above is a Mortgagee or an Owner of a Condominium, except to the extent such coverage is not available or has been waived in writing by the FNMA, GNMA, FHA, and FHLMC as applicable. If the FNMA or FHLMC requirements conflict, the more stringent requirements shall be met. 3778561.5 CC&RS 31096-SI - WPH/Akgia at Spanish Walk 46 Non -Order Search Doc: RV:2007 00544311 Page 53 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 11.2 Owners' Insurance Obligations. Each Owner is strongly advised to seek the advice of' a qualified insurance consultant regarding (i) the amount of property insurance the Owner should procure for casualty losses to property not covered under the Association's property insurance policy; and (ii) the amount of personal liability insurance coverage the Owner should maintain. 11.2.1 Property Insurance. Each Residential Owner shall obtain and maintain at its sole expense property insurance for the risks covered by, and providing coverage as least as broad as, a current ISO form residential condominium homeowners insurance policy or its equivalent, insuring (1) all personal property located within the Owner's Residential Unit or Exclusive Use Easement Areas including without limitation any property of others under the care, custody, or control of Owner, except the Association's property); and (2) any upgrades or Improvements which are not Association Insured Property and which are located within the Residential Unit or Exclusive Use Easement Areas (including landscaping Improvements) (collectively referred to as the "Residential Owner's Property") for an amount equal to the maximum insurable replacement value thereof. 11.2.2 Waiver of Claims and Subrogation. Each Owner waives all claims against the Association for any damage to the real and personal property that such Owner is obligated under this Declaration to insure (including without limitation any loss of use of such property), except that an Owner may claim against the Association for property damage to the extent that the damage is caused by the gross negligence or willful misconduct of the Association or its managing agent. Any property insurance policy obtained by an Owner must contain a waiver of subrogation rights by the insurer consistent with this Section; provided, however, that a failure or inability of an Owner to obtain such a waiver from an insurer shall not defeat or impair the waivers between the Owners and the Association set forth herein. The waivers of claims and subrogation set forth in this Subsection apply only in favor of the Association and do not limit or waive, release or discharge any claims that an Owner (or its insurers) may have against any third party, including without limitation any contractor, service provider, agent, other Owner, or Invitee; provided, that such waivers shall also apply in favor of the Association's managing agent if and to the extent that the Association has similarly agreed in a written management agreement to a waiver of claims and subrogation against such managing agent. 11.2.3 Liability Insurance. Each Owner shall, at such Owner's sole cost and expense maintain liability insurance providing coverage at least as broad as the current ISO commercial general liability insurance form or its equivalent (including coverage for medical payments), insuring the Owner against liability arising from the ownership, operation, maintenance and use of the Owner's Unit and Exclusive Use Easement Area by such Owner. (a) Limits of Liability for Residential Units. Liability insurance maintained by residential Owners shall have limits of liability of not less than Two Hundred Thousand Dollars ($200,000) per occurrence and Three Hundred Dollars ($300,000) general aggregate. 3778561.5 CC&RS 31096-51 — WPWAIeiia at Spanish Walk 47 Non -Order Search Doc: RV:2007 00544311 Page 54 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 11.2.4 Copies of Policies. Copies of all insurance policies that an Owner is required to maintain pursuant to this Declaration, or a certificate of such insurance, shall be delivered to the Association upon request. All policies shall indicate they may not be canceled or modified without thirty (30) days prior written notice to the Association, except than ten (10) days prior written notice shall be required if the cancellation is for non-payment of premiums. The acceptance of a copy of an insurance policy by the Association from an Owner shall not constitute a waiver of any of the insurance requirements set forth herein. 11.2.5 General Policy Requirements. All insurance policies the Owners are required to obtain pursuant to this Article shall be placed and maintained with companies rated at least "B/VII" by A.M. Best Insurance Service and otherwise reasonably satisfactory to the Association. The coverage types and amounts required for such insurance may be satisfied by any combination of primary and excess policies that collectively serve to satisfy the requirements of this Article, including without limitation condominium unit Owners' policy forms that provide both property damage and liability insurance coverage under one policy. 11.3 Review of Insurance. The Board shall review the adequacy of all insurance required by this Declaration to be maintained by the Association and by the Owners at least once every year. The review shall include a reasonable determination of the replacement cost of all Association Insured Property without respect to depreciation. 11.4 Board's Authority to Revise Insurance Requirements. Subject to any statutory insurance requirements, the Board shall have the power and right to adjust and modify the insurance requirements for Owners and the Association set forth herein to require coverage and protection that is customarily carried by and reasonably available to prudent owners and associations of projects similar in construction, location and use. If the Board elects to materially reduce the coverage required to be maintained by the Association from the coverage required in this ARTICLE 11, the Board shall make all reasonable efforts to notify the Owners and Mortgagees of the reduction in coverage and the reasons therefor at least thirty (30) days prior to the effective date of the reduction. The Association and its directors and officers, and the Owners shall have no liability to each other or to any Mortgagee and shall not be in breach of their obligations hereunder, if after a good faith effort, the Association or Owner is unable to obtain one or more of the insurance coverages required hereunder to the extent the insurance is no longer available, or, if available, the insurance can be obtained only at a cost that the Board, in its sole discretion, determines is unreasonable under the circumstances, or in the case of insurance required to be maintained by the Association, if the Owners fail to approve any assessment increase needed to fund the insurance premiums. ARTICLE 12 DESTRUCTION OF IMPROVEMENTS AND CONDEMNATION 12.1 Restoration Defined. As used in this ARTICLE 12, the term "restore" or "restoration" shall mean repairing, rebuilding or reconstructing damaged Improvements to substantially the same condition and appearance in which they existed prior to fire or other casualty damage. 3778561.5 CC&RS 31096-31 — at Spanish Walk 48 Non -Order Search Doc: RV:2007 00544311 Page 55 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 12.2 Restoration Proceeds for Association Property or Common Area. 12.2.1 Sufficient Proceeds. The costs of restoration of the damaged Improvement shall be paid first from any insurance proceeds paid to the Association under existing insurance policies. If the insurance proceeds exceed the costs of restoration, the excess proceeds shall be paid into reserves and held for the benefit of the Association. If the insurance proceeds are insufficient to restore the damaged Improvement, the Board shall then add to the insurance proceeds all reserve account funds designated for the repair or replacement of the damaged Improvement. If the total funds then available are sufficient to restore the damaged Improvement, the Improvement shall be restored. If the aggregate amount of insurance proceeds and such reserve account funds are insufficient to restore the damaged Improves, and if such claims are not waived, the Association shall determine whether to levy an Enforcement Assessment against any Owner or Owners who caused such damage in accordance with Section 11.1.2(h). If the aggregate amount of insurance proceeds and such reserve account funds are insufficient to pay the total costs of restoration, a Special Assessment against all Owners shall be levied by the Board up to the maximum amount permitted without the approval of the Members in accordance with the limitations set forth in this Declaration and by law. If the total funds then available are sufficient to restore the damaged Improvement, the Improvement shall be restored. 12.2.2 Insufficient Proceeds. If the total funds available to the Association are still insufficient to restore the damaged Improvement, then the Board first shall attempt to impose an additional Special Assessment pursuant to subsection (a) below, and second to use a plan of alternative reconstruction pursuant to subsection (b) below. If the Members do not approve such actions, then the entire building of which the damaged Improvement is a part shall be sold pursuant to subsection (c) below. (a) Additional Special Assessment. If the total funds available to restore the damaged Improvement as provided in Section 12.2 are insufficient, then a meeting of the Members shall be called for the purpose of approving a Special Assessment to make up all or a part of the deficiency ("Additional Special Assessment"). If the amount of the Additional Special Assessment approved by the Members, and the amounts available pursuant to Section 12.2 above, are insufficient to restore the damaged Improvement, or if no Additional Special Assessment is approved, the Association shall consider a plan of alternative reconstruction in accordance with subsection (b). (b) Alternative Reconstruction. The Board shall consider and propose plans to reconstruct the damaged Improvement making use of whatever funds are available to it pursuant to Section 12.2 and subsection (a) above ("Alternative Reconstruction"). All proposals shall be presented to the Owners. If two-thirds of the Voting Power of the Owners whose Residential Units were materially damaged, as determined by the Association ("Affected Owners") and a majority of the Voting Power of the Members, including the Affected Owners, agree to any plan of Alternative Reconstruction, then the Board shall contract for the reconstruction of the damaged Improvement in accordance with the plan of Alternative Reconstruction making use of whatever funds are then available to it. If no plan of Alternative Reconstruction is agreed to, then the provisions of subsection (c) shall apply. 3778561.5 CC&RS 31096.51 - WPFVAlcgtia al Spanish Walk 49 Non -Order Search Doc: RV:2007 00544311 Page 56 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM (c) Sale of Building. If the damaged Improvement is part of a Condominium Building ("Damaged Building"), the damage renders one or more of the Condominiums uninhabitable, and the Improvements will not be restored in accordance with the provisions of subsections (a) and (b) above, the Board, as the attorney -in -fact for each Owner of a Condominium in the Damaged Building, shall be empowered to sell the Damaged Building, including all Condominiums therein, in their then present condition, on terms to be determined by the Board, provided that the Board receives adequate assurances that the purchaser shall, and has the financial capability to: (i) restore the Damaged Building (either by renovation or removal and rebuilding), (ii) remove the Damaged Building (including foundations), grade the area, and appropriately landscape or otherwise improve the area, or (iii) perform any combination of the foregoing. Any work to be performed by the purchaser with respect to any of the foregoing shall be subject to the provisions of this ARTICLE 12 and the provisions of this Declaration. In lieu of selling the Damaged Building to a third Person, the Association may purchase the Condominium Building on satisfaction of the following conditions: (i) Members holding at least sixty-seven percent (67%) of the total Voting Power (including the votes allocated to the Condominiums within the Damaged Building) approve of the purchase; (ii) the purchase price is the fair market value of the Damaged Building as of the date of sale as determined by an appraisal made by a qualified and independent real estate appraiser; (iii) any special assessment needed to fund the purchase price shall be levied against all Condominiums, including the Condominiums within the Damaged Building; (iv) the Association has an adequate source of funds to repair, renovate or rebuild all or a portion of the Damaged Building and to remove and appropriately landscape the remaining area. For this purpose, no Condominium that is being purchased shall be subject to any assessment intended to be used as a source of such funds. (d) Distribution of Proceeds. The proceeds from the sale, together with the insurance proceeds received and any reserve funds allocated to the Damaged Building, after deducting therefrom the Association's sale expenses, including commissions, title and recording fees, and legal costs, shall be distributed among the Owners of Condominiums in the Damaged Building and their respective Mortgagees, in proportion to the respective fair market values of these Condominiums immediately prior to the date of the event causing the damage as determined by an independent appraisal made by a qualified real estate appraiser selected by the Board. If a Damaged Building is removed and not restored so that the new building contains the same number of Condominiums as the removed building, the Board shall take appropriate steps to adjust the property interests of the remaining Condominium Owners and to effect such amendments as may be necessary to this Declaration, the Condominium Plan and the Map to reflect the revised property interests and other related changes. 3778561.5 CC&RS 31096-51 — WPFI/Alcgria at Spanish Walk 50 Non -Order Search Doc: RV:2007 00544311 Page 57 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 12.3 Rebuilding Contract. The Board or its authorized representative shall obtain bids from at least two (2) licensed and reputable contractors and shall accept the restoration work from whomever the Board determines to be in the best interests of the Members. The Board shall have the authority to enter into a written contract with the contractor for such restoration, and the insurance proceeds shall be disbursed to the contractor according to the terms of the contract. The Board shall take all steps necessary to assure the commencement and completion of authorized restoration at the earliest possible date. Such restoration shall be commenced no later than one hundred eighty (180) days after the event requiring restoration and shall thereafter be diligently prosecuted to completion. Such restoration shall return the damaged Improvements to substantially the same condition and appearance in which it existed prior to the damage or destruction. 12.4 Authority to Effect Changes. If any adjacent Residential Units or portion thereof are damaged or destroyed or in need of renovation or rehabilitation and the Residential Units are repaired or reconstructed pursuant to Section 12.5, the Residential Unit may be repaired or reconstructed in a manner that alters the boundaries of such Residential Units or the adjacent Common Area or Association Property provided the following conditions are satisfied. (i) the alteration has been approved by the Board, by the holders of any First Mortgages to the extent required herein and the Owners of the affected Residential Units; (ii) the Board has determined that the alteration is necessary in order to comply with current building code requirements, to meet current building construction standards and procedures, or to improve the conditions and quality of the affected Residential Units; (iii) the alteration does not materially change the location of any Residential Unit or materially reduce the size of any Residential Unit without the consent of the Residential Unit Owner and the holders of any First Mortgages thereon. For purposes herein, a material reduction in the size of the Residential Unit shall mean any alteration that increases or decreases the square footage of the interior floor space of the Residential Unit by more than ten percent (10%) from the square footage as shown on the Condominium Plan; (iv) the Board has determined that any alteration that will relocate or reduce the Association Property will not unreasonably interfere with the rights of the Owners and occupants to use and enjoy the Association Property; (v) the Condominium Plan is amended to reflect the alteration to the Residential Units or Association Property; and (vi) easements for any encroachments created by such alterations are granted to the affected Owners by the Association. Each Owner irrevocably appoints the Association as that Owner's attorney -in -fact (except for the Secretary, U.S. Department of Veterans Affairs) and irrevocably grants to the Association the full power in the name of the Owner to effect any alteration to any Residential 3778561.5 CC&RS 31096-51 — WPFUAlegria ai Spanish Walk 51 Non -Order Search Doc: RV:2007 00544311 Page 58 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM Unit or Association Property as authorized above, including, without limitation, the execution, delivery and recordation of any Condominium Plan amendments, deeds or other instruments. 12.5 Minor Repair and Reconstruction. The Board shall have the duty to repair and reconstruct Improvements, without the consent of Members and irrespective of the amount of available insurance proceeds, in all cases of partial destruction when the estimated cost of repair and reconstruction does not exceed Ten Thousand Dollars ($10,000). The Board is expressly empowered to levy a Special Assessment for the cost of repairing and reconstructing improvements to the extent insurance proceeds are unavailable and determine whether to levy an Enforcement Assessment against any Owner who caused the damage pursuant to Section 11.1.2(h), such assessment to be levied as described above (but without the consent or approval of Members, despite any contrary provisions in this Declaration). 12.6 Damage or Destruction to a Residential Unit. In the event of damage or destruction to any Residential Unit, the Owner thereof shall (unless the Association is not required to repair surrounding damaged Common Area and Association Property pursuant to the terms set forth above) reconstruct the same as soon as reasonably practicable and substantially in accordance with the original plans and specifications therefor; provided, however, that any such Owner may, with the written consent of the Board, reconstruct or repair the same pursuant to new or changed plans and specifications. In the event the Board fails to approve or disapprove such changed plans and specifications within sixty (60) days of the receipt thereof, they shall be deemed to have been approved. The Owner shall be entitled to the benefit of any master policy of property insurance maintained by the Association to the extent it covers the damage or destruction of elements of the Condominium that are within the Residential Unit and which are the obligation of the Owner to repair as provided in this Declaration. With the exception of any casualty or damage insured against by the Association pursuant to Section 12.1 of this Declaration, restoration and repair of any damage to the interior of any individual Residential Unit, including without limitation all fixtures, cabinets and improvements therein, together with restoration and repair of all interior paint, wall coverings and floor coverings, shall be made by and at the individual expense of the Owner of the Residential Unit so damaged, provided however, that nothing contained in this Section shall be construed as a waiver of claims that the Owner of a damaged Residential Unit may have against another Owner who caused the damage. In the event of a determination to rebuild the Property after partial or total destruction, as provided in this ARTICLE 12, such interior repair and restoration shall be completed as promptly as practical and in a lawful and workmanlike manner, in accordance with Plans and Specifications approved in accordance with ARTICLE 9 of this Declaration. 12.7 Condemnation of Common Area and Association Property. If any portion of the Common Area or Association Property is taken by condemnation, eminent domain or any proceeding in lieu thereof, then the Owners of the Common Area, Association Property, and their Mortgagees as their respective interests then appear, shall be entitled to receive a distribution from the award for such taking in the same proportion as insurance proceeds would be distributed pursuant to the provisions above; provided, however, that should it be determined to repair or rebuild any portion of the Common Area or Association Property, such proceeds shall be paid to the Association for that purpose in the same manner and subject to the same terms, conditions and limitations as are set forth above in this Article for repairing damaged or destroyed portions of the Common Area or Association Property. A decision to repair or rebuild 3778561.5 CC&RS 3I096-5I — WPHJALegria at Spanish Walk 52 Non -Order Search Doc: RV:2007 00544311 Page 59 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM shall be made in the same manner and subject to the same conditions and limitations as provided above in this Article for determining whether to rebuild or repair following damage or destruction. 12.8 Condemnation of a Residential Unit. In the event of any taking of a Condominium, the Owner (and such Owner's Mortgagees as their interests may appear) of the Condominium shall be entitled to receive the award for such taking and after acceptance thereof such Owner and such Owner's Mortgagee shall be divested of all further interest in the Condominium and membership in the Association if such Owner shall vacate such Owner's Residential Unit as a result of such taking. In such event said Owner shall grant its remaining interest in the Common Area appurtenant to the Residential Unit so taken, if any, to the other Owners owning a fractional interest in the same Common Area, such grant to be in proportion to the fractional interest in the Common Area then owned by each. ARTICLE 13 PARTITION AND SEVERABILITY OF INTERESTS 13.1 Suspension. The right of partition is suspended pursuant to California Civil Code Section 1359 as to the Project. Nothing in this ARTICLE 13 shall be deemed to prohibit partition of a co -tenancy in a Condominium. 13.2 Partition. Except as provided in this Declaration, there shall be no judicial partition of the Common Area, or any part thereof, for the term of the Project, nor shall Declarant, any Owner or any other person acquiring any interest in any Condominium in the Project seek any such judicial partition. The undivided interest in the Common Area described above may not be altered or changed as long as the prohibition against severability of interests in a Condominium remains in effect as provided in this Declaration. Notwithstanding the foregoing, judicial partition shall be permitted as follows: 13.2.1 With the approval, after substantial destruction or condemnation of the Project occurs, of at least sixty-seven percent (67%) of the total Voting Power of the Association and approval by Eligible Holders who represent fifty-one percent (51%) of the Condominiums that are subject to Mortgages held by Eligible Holders; or 13.2.2 With the approval, for reasons other than substantial destruction or condemnation of the Project, of at least sixty-seven percent (67%) of the total Voting Power of the Association and approval by Eligible Holders who represent at least sixty-seven percent (67%) of the Condominiums that are subject to Mortgages held by Eligible Holders; or 13.2.3 As allowed by California law, including Civil Code Section 1359, as the same may be amended from time to time. An Eligible Holder who receives a written request to give such approvals who does not deliver or mail the requesting party a negative response within sixty (60) days shall be deemed to have given such approval provided such written request was delivered by certified mail or registered mail with "return receipt" requested. For so long as is required by FNMA's legal requirements for project acceptance, all references to "Eligible Holder" in this Section 13.2 shall be deemed to include all First Mortgagees. 3778561.5 CC&RS 31096-51 — WPN/Alegria al Spanish Walk 53 Non -Order Search Doc: RV:2007 00544311 Page 60 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 13.3 Distribution of Proceeds. Proceeds or property resulting from a partition shall be distributed to and among the respective Owners and their Mortgagees as specified or apportioned in the judgment of partition, or if not so specified, as their interests appear in proportion to the fair market value of the Condominiums at the date of the sale as determined by an independent appraisal conducted by a member of the American Institute of Real Estate Appraisers with the designation of a Member Appraisal Institute (M.A.I.) or if such institute no longer exists, an appraiser of comparable experience. 13.4 Power of Attorney. Each Owner irrevocably appoints the Association as attorney -in -fact and irrevocably grants to the Association full power in the name and stead of such Owner to sell the entire Project, and to execute deeds and conveyances to it, in one or more transactions, for the benefit of all Owners when partition of the Project may be had under California Civil Code Section 1359. The power of attorney shall: 13.4.1 Be binding on all Owners, whether they assume the obligations under this Declaration or not; 13.4.2 Be exercisable by a majority of the Board acting on behalf of the Association, subject to obtaining the prior approval by vote or written consent of at least seventy- five percent (75%) of the Owners and at least seventy-five percent (75%) of all Institutional Mortgagees; and 13.4.3 Be exercisable only after recordation with the County Recorder of a certificate executed by those who have power to exercise the power of attorney that the power of attorney is properly exercisable under the authority of this Declaration. This certificate shall be conclusive evidence of proper exercise in favor of any person relying on it in good faith provided; however, that said power of attorney shall not apply to the Administrator of Veterans Affairs, an Officer of the United States of America. 13.5 Prohibition Against Severance. An Owner shall not be entitled to sever such Owner's Residential Unit from its membership in the Association, and shall not be entitled to sever such Owner's Residential Unit and such Owner's membership from such Owner's undivided interest in the Common Area for any purpose. None of the component interests in a Condominium can be severally sold, conveyed, encumbered, hypothecated or otherwise dealt with, and any violation or attempted violation of this provision shall be void. Similarly, no Owner can sever any exclusive easement appurtenant to such Owner's Residential Unit over the Common Area and Association Property from such Owner's Condominium, and any attempt to do so shall be void. It is intended hereby to restrict severability pursuant to California Civil Code Section 1358. Notwithstanding the foregoing, the suspension of such right of severability contained herein shall not extend beyond the period set forth in Section 13.2 in which the right to partition the Project is suspended thereunder. 13.6 Conveyances. After the initial sales of the Condominiums, any conveyance of a Condominium by an Owner shall be presumed to convey the entire Condominium. However, nothing contained in this Section shall preclude the Owner of any Condominium from creating an estate for life or years, cotenancy or joint tenancy in the ownership of the Condominium with any other person or persons. 3778561.5 CC&RS 31096-51 — WPFUAlegia at Spanish Walk 54 Non -Order Search Doc: RV:2007 00544311 Page 61 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM ARTICLE 14 RIGHTS OF MORTGAGEES 14.1 Conflict. Notwithstanding any contrary provision contained elsewhere in the Governing Documents, the provisions of this Article shall control with respect to the rights and obligations of Mortgagees as specified herein. 14.2 Liability for Unpaid Assessments. Any Institutional Mortgagee who obtains title to a Condominium pursuant to the remedies provided in the First Mortgage (except upon a voluntary conveyance to the Institutional Mortgagee) or by foreclosure of the First Mortgage shall take the property free of any claims for unpaid assessments or charges against the Condominium which accrue prior to the acquisition of title to the Condominium by the Institutional Mortgagee. 14.3 Payment of Taxes and Insurance. All taxes, assessments and charges that may become a lien prior to the lien of any First Mortgagee shall be levied only to the individual Condominium and not the Project as a whole. Institutional Mortgagees may, jointly or singly, pay taxes or other charges that are in default and that may or have become a charge against any Common Area and/or Association Property or Improvements situated thereon and may pay overdue premiums on property insurance policies or secure new hazard insurance coverage on the lapse of a policy for such Common Area and/or Association Property. Institutional Mortgagees making such payments shall be owed immediate reimbursement for such expenditures from the Association and, on demand, the Association shall execute an agreement in favor of all Institutional Mortgagees reflecting entitlement to reimbursement. 14.4 Notice to Eligible Holders. An Eligible Holder is entitled to timely written notice of the following events: 14.4.1 Any condemnation loss or casualty loss that affects either a material portion of the Project or the Residential Unit on which the Eligible Holder holds a First Mortgage; 14.4.2 Any delinquency in the payment of assessments or charges owed by the Owner of a Condominium that is subject to a First Mortgage held by the Eligible Holder if the delinquency is not cured within sixty (60) days after its due date; 14.4.3 Any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Association; 14.4.4 Any proposal to take any action specified in this Article or in the Article hereof entitled "Destruction of Improvements and Condemnation;" 14.4.5 Any default by the Owner -Mortgagor of a Condominium that is subject to a First Mortgage held by the Eligible Holder in the performance of its obligations under this Declaration or the Bylaws which is not cured within sixty (60) days; or 14.4.6 Any proposed action that requires the consent of a specified percentage of the Eligible Holders. 3778561.5 CC&RS 31096-51 — WPWAlcgria at Spanish Walk 55 Non -Order Search Doc: RV:2007 00544311 Page 62 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM For so long as is required by FNMA's legal requirements for project acceptance, all references to "Eligible Holder" in this Section 14.4 shall be deemed to include all First Mortgagees and all guarantors of First Mortgages. 14.5 Reserve Fund. The Association shall maintain as a reserve fund a reserve account fund sufficient to pay for maintenance, repair and periodic replacement of the Common Area and Association Property Improvements that the Association is obligated to maintain. This reserve fund shall be funded by Regular Assessments of Owners that are payable in installments rather than by Special Assessment; provided, however, that this provision shall not be deemed to limit the power of the Association to levy any other type of assessment or charge authorized by this Declaration. 14.6 Inspection of Books and Records. Upon request, any Owner or First Mortgagee shall be entitled to inspect the books, records and financial statements of the Association, the Governing Documents and any amendments thereto during normal business hours or under other reasonable circumstances. 14.7 Financial Statements. The Association, at its expense, shall prepare an audited financial statement for the immediately preceding Fiscal Year and make the same available within one hundred twenty (120) days after the Association's Fiscal Year-end to any Institutional Mortgagee or Eligible Holder that has submitted a written request for it. 14.8 Actions Requiring Eligible Holder Approval. Unless at least sixty-seven percent (67%) of the Eligible Holders (based on one vote for each First Mortgage owned) and at least sixty-seven percent (67%) of the Owners other than Declarant have given their prior written approval, the Association shall not be entitled to: (a) By act or omission, seek to abandon or terminate the Project; (b) By act or omission abandon, partition, subdivide, encumber, sell or transfer any property or improvements owned, directly or indirectly, by the Association for the benefit of the Condominiums and the Owners. (The granting of easements for public utilities or for other public purposes consistent with the intended use of the Project by the Association and Owners shall not be deemed a transfer within the meaning of this Section); (c) By act or omission change, waive or abandon any scheme of regulations, or enforcement thereof, pertaining to architectural design or exterior appearance of Residential Units, the exterior maintenance of Residential Units, or the upkeep of lawns, plantings or other landscaping in the Project; (d) By act or omission change the method of determining the obligations, assessments, dues or other charges that may be levied against an Owner; (e) Partition or subdivide a Condominium; (t) Fail to maintain fire and extended coverage insurance on insurable portions of the Common Area and/or Association Property on a current replacement cost basis in 3778561.5 CC&RS 31096-51 — WPWAlegria at Spanish Walk 56 Non -Order Search Doc: RV:2007 00544311 Page 63 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM an amount not less than one hundred percent (100%) of the insurable value based on current replacement cost; and (g) Use hazard insurance proceeds for losses to any property or Improvements owned by the Association other than for the repair, replacement or reconstruction of such property and Improvements. 14.9 Votes for Termination of Project. Any election to terminate the legal status of the Project as a Condominium project shall require: 14.9.1 The approval of Eligible Holders that represent at least fifty-one percent (51%) of the votes of Condominiums that are subject to Mortgages held by Eligible Holders and at least sixty-seven percent (67%) of the total Voting Power of the Association if the election to terminate the legal status is a result of substantial destruction or a substantial taking in condemnation of the property within the Project; or 14.9.2 The approval of at least sixty-seven percent (67%) of the total Voting Power of the Association and Eligible Holders that represent at least sixty-seven percent (67%) of the votes of Condominiums that are subject to Mortgages held by Eligible Holders, if Section 14.9.1 is not applicable. For so long as is required by FNMA's legal requirements for project acceptance, all references to "Eligible Holder" in this Section 14.9 shall be deemed to include all First Mortgagees. 14.10 Condemnation or Destruction. In the event a portion of the Project is either condemned or destroyed or damaged by a hazard that is insured against, restoration or repair shall be performed substantially in accordance with the provisions of this Declaration and the original plans and specifications for the Project unless Eligible Holders representing at least fifty-one percent (51 %) of the votes of Condominiums subject to Mortgages held by Eligible Holders approve the taking of other action by the Association. 14.11 Self -Management. The vote or approval by written ballot of at least sixty-seven percent (67%) of the total voting power of the Association and Eligible Holders that represent at least fifty-one percent (51 %) of the Condominiums that are subject to Mortgages held by Eligible Holders shall be required to assume self -management of the Project if professional management of the Project has been required by an Eligible Holder at any time. 14.12 Mortgagee Protection. A breach of any of the conditions contained in this Declaration shall not defeat nor render invalid the lien of any First Mortgage made in good faith and for value as to any Condominium in the Project; provided, however, that the conditions contained in this Declaration shall be binding upon and effective against any Owner of a Condominium if the Condominium is acquired by foreclosure, trustee's sale or otherwise. 14.13 Distribution of Insurance and Condemnation Proceeds. No Owner, or any other party, shall have priority over any right of Institutional Mortgagees of Condominiums pursuant to their Mortgages in case of a distribution to Owners of insurance proceeds or condemnation awards for losses to or a taking of Condominiums or Common Area and/or Association Property. Any provision to the contrary in this Declaration or in the Bylaws or other 3778561.5 CC&RS 31096-51 — WPH/Alegia al Spanish Walk 57 Non -Order Search Doc: RV:2007 00544311 Page 64 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM documents relating to the Project is to such extent void. All applicable fire and all physical loss or extended coverage insurance policies shall contain loss payable clauses acceptable to the affected Institutional Mortgagees naming the Mortgagees, as their interests may appear. 14.14 Voting Rights on Default. In case of default by any Owner in any payment due under the terms of any Institutional Mortgage encumbering such Owner's Condominium, or the promissory note secured by the Mortgage, the Mortgagee or its representative, on giving written notice to such defaulting Owner or Owners, and placing of record a notice of default, is hereby granted a proxy and can exercise the voting rights of such defaulting Owner attributable to such Condominium at any regular or special meeting of the Members held during such time as such default may continue. 14.15 Foreclosure. If any Condominium is encumbered by a First Mortgage made in good faith and for value, the foreclosure of any lien created by any provision set forth in this Declaration for assessments, or installments of assessments, shall not affect or impair the lien of the First Mortgage. On foreclosure of the Mortgage, the lien for assessments, or installments, that has accrued up to the time of foreclosure shall be subordinate to the lien of the Mortgage, with the foreclosure -purchaser taking title to the Condominium free of the lien for assessments, or installments, that has accrued up to the time of the foreclosure sale. On taking title to the Condominium the foreclosure -purchaser shall only be obligated to pay assessments or other charges levied or assessed by the Association after the foreclosure -purchaser acquired title to the Condominium. The subsequently accrued assessments or other charges may include previously unpaid assessments provided all Owners, including the foreclosure -purchaser, and its successors and assigns are required to pay their proportionate share as provided in this Section. 14.16 Non -Curable Breach. Any Mortgagee who acquires title to a Condominium by foreclosure or by deed in lieu of foreclosure or assignment -in -lieu of foreclosure shall not be obligated to cure any breach of this Declaration that is non -curable or that is not practical or feasible to cure. 14.17 Loan to Facilitate. Any Mortgage given to secure a loan to facilitate the resale of a Condominium after acquisition by foreclosure or by a deed -in -lieu of foreclosure or by an assignment -in -lieu of foreclosure shall be deemed to be a loan made in good faith and for value and entitled to all of the rights and protections of this Article. 14.18 Appearance at Meetings. Because of' its financial interest in the Project, any Mortgagee may appear (but cannot vote except as may be provided for herein) at meetings of the Members and the Board to draw attention to violations of this Declaration that have not been corrected or made the subject of remedial proceedings or assessments. 14.19 Right to Furnish information. Any Mortgagee can furnish information to the Board concerning the status of any Mortgage. 14.20 Inapplicability of Right of First Refusal to Mortgagee. No right of first refusal or similar restriction on the right of an Owner to sell, transfer or otherwise convey the Owner's Condominium shall be granted to the Association without the written consent of any Mortgagee of the Condominium. Any right of first refusal or option to purchase a Condominium that may 3778561.5 CC&RS 31096-51 — WPWAlegia at Spanish Walk 58 Non -Order Search Doc: RV:2007 00544311 Page 65 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM be granted to the Association (or other person, firm or entity) shall not apply to any conveyance or transfer of title to such Condominium, whether voluntary or involuntary, to a Mortgagee that acquires title to or ownership of the Condominium pursuant to the remedies provided in its Mortgage or by reason of foreclosure of the Mortgage or deed or assignment in lieu of foreclosure. 14.21 Written Notification to Mortgagees or Guarantors of First Mortgages. If a Mortgagee or guarantor of a First Mortgage is not also an Eligible Holder, any written notice or proposal required or permitted by this Declaration to be given to such Mortgagee or guarantor shall be deemed properly given if deposited in the United States mail, postage prepaid, and addressed to the Mortgagee or guarantor at its address appearing of record in the First Mortgage (or assignment thereof, if applicable). ARTICLE 15 AMENDMENTS Except as otherwise set forth in this Declaration, this Article shall not be amended, modified or rescinded until Declarant has conveyed the last Condominium within the Project, including any Phase which may be annexed to and made a part of the Project pursuant to the Article hereof entitled "Annexation of Additional Property," without (i) the prior written consent of Declarant and (ii) the recording of said written consent in the Office of the County Recorder. 15.1 Conflict with Community Declaration. Notwithstanding anything to the contrary set forth in this Declaration, the Declaration shall not be amended in any manner which conflicts with the terms and provisions of the Community Declaration. This Declaration is subordinate to the Community Declaration and in the event of any inconsistency between the Declaration and the Community Declaration, the Community Declaration shall control. 15.2 Amendment Before the Close of First Sale. Before the close of the first sale of a Condominium to a purchaser other than Declarant, this Declaration and any amendments to it may be amended in any respect or revoked by the execution by Declarant and any Mortgagee of record of an instrument amending or revoking this Declaration. The amending or revoking instrument shall make appropriate reference to this Declaration and its amendments and shall be acknowledged and recorded in the office of the County Recorder. 15.3 Amendments After the Close of First Sale. Except as may otherwise be stated in this Declaration, after the close of the first sale of a Condominium in the Project to an Owner other than Declarant and during the period of time prior to conversion of the Class B membership in the Association to Class A membership, this Declaration may be amended at any time and from time to time provided that the vote or approval by written ballot of seventy-five percent (75%) of the Voting Power of each class of Members of the Association has been obtained. After conversion of the Class B membership in the Association to Class A membership, this Declaration may be amended at any time and from time to time, provided that the vote or approval by written ballot of (a) at least seventy-five percent (75%) of the total Voting Power of the Association and (b) at least seventy-five percent (75%) of the Voting Power of the Members of the Association, other than Declarant, has been obtained. The vote on a proposed amendment to the Declaration shall be held by secret written ballot in accordance with 3778561.5 CC&RS 31096-51 — WP11/Alcvia at Spanish Walk 59 Non -Order Search Doc: RV:2007 00544311 Page 66 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM the procedures set forth in California Civil Code Section 1363.03 and the rules adopted by the Board pursuant thereto. Such amendment shall become effective upon the recording of a Certificate of Amendment signed and acknowledged by the President or Vice President of the Association and the Secretary or Assistant Secretary of the Association certifying that such votes or approval by written ballot have been obtained. For the purposes of recording the Certificate of Amendment, the President or Vice -President and Secretary or Assistant Secretary of the Association are hereby granted an irrevocable power of attorney to act for and on behalf of each and every Owner in certifying and executing and recording with the Office of the County Recorder. In addition to the foregoing, in the case of any Material Amendment, as defined below, the vote of Eligible 1-lolders that represent at least fifty one percent (51%)) of the votes of Condominiums that are subject to Mortgages held by Eligible Holders shall also be required. "Material Amendment" shall mean, for the purposes of this Section 15.3, any amendments to provisions of this Declaration governing any of the following subjects: 15.3.1 The fundamental purpose for which the Project was created (such as a change from residential use to a different use); 15.3.2 Assessments, collection of assessments, assessment liens and subordination thereof; 15.3.3 The reserve for repair and replacement of the Common Area and Association Property; 15.3.4 Property maintenance obligations; 15.3.5 Casualty and liability, or hazard insurance or fidelity bond requirements; 15.3.6 Reconstruction in the event of damage or destruction; 15.3.7 Rights to use the Common Area and/or Association Property; 15.3.8 Reallocation or conveyance of any interests in the Common Area; 15.3.9 Voting; 15.3.14Any provision that, by its terms, is specifically for the benefit of Eligible Holders, or specifically confers rights on Eligible Holders; 15.3.1lExpansion or contraction of the Project or the addition, annexation or withdrawal of property to or from the Project, other than the addition or deletion of the Additional Property, the redefinition of Residential Unit boundaries or the conversion of a Residential Unit or Residential Units into Common Area and/or Association Property; and 15.3.12lmposition of any restriction on any Owner's right to lease, sell or transfer its Residential Unit; and 15.3.13Merger or consolidation of the Association. 377856I,5 CC&RS 31096-51 — WPIVAIegria al Spanish Walk 60 Non -Order Search Doc: RV:2007 00544311 Page 67 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM Any Eligible Holder who receives written request to consent to additions or amendments requiring consent under this provision who does not deliver to the requesting party a negative response within sixty (60) days after receipt of a notice delivered by certified or registered mail, return receipt requested, shall be deemed to have consented to such request. For so long as is required by FNMA's legal requirements for project acceptance, all references to "Eligible Holder" in this Section 15.3 shall be deemed to include all First Mortgagees. If any provision of this Declaration requires a greater or lesser percentage of the voting rights of any class of Members in order to take affirmative or negative action under such provision, the same percentage of such class or classes of Members shall be required to amend or revoke such provision. Also, if the consent or approval of any governmental authority, Mortgagee or other person, firm. agency or entity is required under this Declaration with respect to any amendment or revocation of any provision of this Declaration, no such amendment or revocation shall become effective unless such consent or approval is obtained. Any amendment or revocation subsequent to the close of such first sale shall be evidenced by an instrument certified by the Secretary or other duly authorized officer of the Association and shall make appropriate reference to this Declaration and its amendments and shall be acknowledged and recorded in the office of the County Recorder. 15.4 Further Approvals Regarding Amendments. Notwithstanding anything to the contrary contained in this Declaration, Sections 2.8, 2.47, 2.55, 4.3.13, 4.4.4, 4.4.7, 4.4.9, 4.4.10, 4.4.11, 4.4.12, 8.1.1, 8.4.1, 17.3 and 17.4 of this Declaration shall not be amended without the vote or approval by written ballot of (a) at least ninety percent (90%) of the voting power of the Members of the Association other than Declarant, and (b) at least ninety percent (90%) of the Mortgagees. 15.5 Conflict with ARTICLE 14 or Other Provisions of this Declaration. To the extent any provisions of this Article conflict with the provisions of ARTICLE 14 or any other provision of this Declaration except those contained in Section 15.4, the provisions of ARTICLE 14 or the other provisions shall control. 15.6 Business and Professions Code Section 11018.7. All amendments or revocations of this Declaration shall comply with the provisions of California Business and Professions Code Section 11018.7 to the extent such section is applicable. 15.7 Reliance on Amendments. Any amendments made in accordance with the terms of this Declaration shall be presumed valid by anyone relying on them in good faith. ARTICLE 16 ANNEXATION OF ADDITIONAL PROPERTY 16.1 Annexation. Any of the Additional Property described in Exhibit "B" may be annexed to and become subject to this Declaration by any of the methods set forth hereinafter in this Article. Declarant intends to sequentially develop the Additional Property on a phased basis. However, Declarant may elect not to develop all or any part of such real property to this Declaration in increments of any size whatsoever, or to develop more than one such increment at any given time and in any given order or develop such real property as a separate project. Although Declarant shall have the ability to annex the Additional Property as provided in this 3778561.5 CC&RS 31096-51 — WP1ilAlegia at Spanish Walk 61 Non -Order Search Doc: RV:2007 00544311 Page 68 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM Article, Declarant shall not be obligated to annex all or any portion of the Additional Property, and the Additional Property shall not become subject to this Declaration unless and until a Supplementary Declaration covering it has been recorded. 16.2 Annexation Without Approval. All or any part of the Additional Property may be annexed to and become subject to this Declaration and subject to the jurisdiction of the Association without the approval, assent or vote of the Association or its Members, provided that: 16.2.1 The proposed Annexation will not result in a substantial and material overburdening of the common interests of the then existing Owners; 16.2.2 The proposed Annexation will not cause a substantial increase in assessments against existing Owners that was not disclosed in the Public Reports under which pre-existing Owners purchased their interests; 16.2.3 For each Residential Unit in the Project to be annexed for which a rental program has been in effect by the Owner for a period of at least one (1) year as of the date of closing of the escrow for the first sale of a Residential Unit in the annexed Phase, the Owner shall pay to the Association, before or concurrently with the first close of escrow for the sale of a Residential Unit within the annexed Phase, an amount for each month or portion thereof during which the Residential Unit was occupied under such rental program that shall be established by the Board for reserves for replacement or deferred maintenance of Common Area and/or Association Property Improvements necessitated by or arising out of the use and occupancy of the Residential Units under the rental program; 16.2.4 Before Annexation pursuant to this Section of any of the Additional Property that is being developed as a phased FHA and/or VA project, plans for the development of the Additional Property must be submitted to FHA and/or the VA as applicable, and FHA and/or VA as applicable, must determine that such plans are in accordance with the previously approved general plan and so advise Declarant; and 16.2.5 Each Declaration effecting the Annexation contemplated under this Section must be executed by Declarant. For purposes of this Section, the issuance of a Public Report by the DRE shall conclusively be deemed to be satisfaction of the criteria set forth above. 16.3 Covenants Running with the Land. Declarant may transfer all or any portion of the Property or the Additional Property to a builder under a grant deed wherein Declarant reserves the right to annex such property and subject it to this Declaration. The restriction on the Additional Property wherein it may be made subject to this Declaration upon the recordation of a Supplementary Declaration is hereby declared to be an equitable servitude upon the Additional Property in favor of the subject Property and any other real property owned by Declarant in the vicinity of the Project and shall run with the land and be binding on and inure to the benefit of all parties having or acquiring any right, title or interest, in such real property. 3778561.5 CC&RS 31096-51 — WPHJAIeiia at Spanish Walk 62 Non -Order Search Doc: RV:2007 00544311 Page 69 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 16.4 Supplementary Declaration. The Annexation authorized under the foregoing Sections shall be made by filing of record by Declarant, of a Supplementary Declaration, with respect to the Additional Property which shall extend the plan of this Declaration to such property. 16.5 Association Property. Any portion of the property being annexed that is intended or required to be Association Property shall be conveyed to the Association prior to the close of the first sale of any Residential Unit in the annexed property to an Owner, other than the Declarant. 16.6 Rights and Obligations of Owners. After the required annexation procedures are fulfilled, all Owners in the Project shall be entitled to the use of any Association Property in such Additional Property, subject to the provisions of this Declaration, and Owners of such Property shall thereupon be subject to this Declaration. After each Annexation, the assessments shall be assessed in accordance with the provisions set forth in Section 6.3.4 with the Additional Property being assessed for a proportionate share of total common expenses on the same basis as the other property in the Project. 16.7 Mergers or Consolidations. Upon a merger or consolidation of the Association with another association, the Association's properties, rights and obligations may, by operation of law, be transferred to the surviving or consolidated association, or, alternatively, the properties, right and obligations of another association may, by operation of law, be added to the properties, rights and obligations of the Association as a surviving corporation pursuant to a merger. The surviving or consolidated association may administer the covenants, conditions and restrictions established by this Declaration within the Project, together with the covenants and restrictions established upon any other property as one plan. 16.8 De -Annexation. Declarant may delete all or any portion of the annexed land from the coverage of this Declaration and rescind any Supplementary Declaration, provided that (a) Declarant is the sole Owner of all of the real property described in the Supplementary Declaration to be rescinded or obtains the consent of the fee title Owner of the real property to be de -annexed, (b) Declarant has not exercised any Association vote as an Owner of any portion of the real property to be de -annexed, and (c) assessments have not commenced with respect to any portion of the real property to be de -annexed. Such deletion shall be effective upon the recordation of a written instrument signed by Declarant, in the same manner as the Supplementary Declaration to be rescinded was recorded. ARTICLE 17 ENFORCEMENT 17.1 Term. The covenants, conditions and restrictions of this Declaration shall run with and bind the Property and shall inure to the benefit of and be enforceable by the Association or any Member, their respective legal representatives, heirs, successors and assigns, for a term of sixty (60) years from the date this Declaration is recorded, after which time said covenants, conditions and restrictions shall be automatically extended for successive periods of ten (10) years each, unless an instrument, signed by at least sixty-seven percent (67%) of the then Members has been recorded, at least one (1) year prior to the end of any such period in the 3778561.5 CC&RS 31096-51 — WPWAlcyia at Spanish Walk 63 Non -Order Search Doc: RV:2007 00544311 Page 70 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM manner required for a conveyance of real property, in which it is agreed that this Declaration shall terminate at the end of the then applicable term. 17.2 Enforcement and Nonwaiver. 17.2.1 Rights of Enforcement of Governing Documents. The Association or any Owner shall have a right of action against any Owner, and any Owner shall have a right of action against the Association, to enforce by proceedings at law or in equity, all covenants, conditions, and restrictions, now or hereafter imposed by the provisions of the Governing Documents or any amendment thereto, including the right to prevent the violation of such covenants, conditions and restrictions and the right to recover damages or other dues for such violation except that Owners shall not have any right of enforcement concerning assessment liens. The Association shall have the exclusive right to the enforcement of provisions relating to architectural control and the Association Rules, unless the Association refuses or is unable to effectuate such enforcement, in which case any Owner who otherwise has standing shall have the right to undertake such enforcement. Failure of the Association, Declarant or any Owner to enforce any covenants or restrictions herein contained shall in no event be deemed a waiver of the right to do so thereafter. 17.2.2 Procedure for Enforcement. Notwithstanding anything to the contrary set forth in Section 17.2.1 above, in enforcing any action under the Governing Documents injunctive relief, declaratory relief and/or monetary damages (excluding actions in Small Claims Court), the parties shall comply with the applicable notice and delivery requirements and other provisions of California Civil Code Section 1350 et seq. relating to such enforcement action. 17.2.3 Provisions of Community Declaration Apply to Certain Disputes. If any dispute includes the Community Association as a party to the dispute, such dispute is referred to in this Declaration as a "Project Dispute." Project Disputes shall be resolved as set forth in the Community Declaration. 17.3 Notice of Actions Against Declarant. Subject to the provisions of Section 17.4 hereof, the Association shall comply with the provisions of California Civil Code Section 1368.5, Civil Code Sections 910 through 938 prior to the filing of any civil action by the Association against the Declarant or other developer of the Project for either alleged damage to the Association Property or other property within the Project that the Association is obligated to maintain or repair, or alleged damage to any other portion of the Project that arises out of, or is integrally related to, such damage to the Association Property or other property within the Project that the Association is obligated to maintain or repair. Such notice shall specify all of the matters set forth in Section 1368.5 and/or Civil Code Sections 910 through 938, as applicable. 17.4 Alternative Dispute Resolution. If any "Dispute" (as "Dispute" is defined in Section 12.4 of the Community Declaration) includes the Community Association or any Declarant Party or Declarant Parties (as defined in Section 12.4 of the Community Declaration) then such Disputes are referred to in this Declaration as a "Community Dispute." All Community Disputes shall be governed by the alternative dispute resolution provisions set forth in Section 12.4 of the Community Declaration. The alternative dispute resolution procedures set forth in this Section 17.4 shall govern all disputes involving an Owner, Declarant and the 3778561.5 CC&RS 31096-51 — WPIVAlegria at Spanish Walk 64 Non -Order Search Doc: RV:2007 00544311 Page 71 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM Association, that are not Community Disputes. The purpose of this Section 17.4 is to provide an expedited means of resolving any claims, disputes and disagreements which may arise between an Owner and/or the Association and Declarant or among (i) the Declarant (including any affiliated general contractor of Declarant as defined in California Civil Code Section 911), and (ii) the Association and/or any Owner, after the close of escrow or other conveyance of any portion of the Property by Declarant concerning the Property, Limited Warranty and/or the Customer Care Program that are not resolved pursuant to any applicable statutory dispute resolution procedures (individually referenced to herein as "Dispute" and collectively as "Disputes"). Initially, Declarant will attempt to resolve any Dispute asserted by an Owner or the Association of which it is given notice. If the Dispute cannot be resolved between the parties in this manner, the parties will proceed to mediation, according to the procedures set forth below. If the matter is not resolved by the mediation process, it will be decided through the arbitration procedure as set forth below. Alternatively, Declarant, an Owner or the Association may elect to resolve such Disputes through a small claims court proceeding. THIS PROCESS INVOLVES WAIVER OF THE RIGHT TO A JURY TRIAL. BY EXECUTING THIS DECLARATION AND BY ACCEPTING A DEED TO ANY PORTION OF THE PROPERTY, RESPECTIVELY, DECLARANT, EACH OWNER AND THE ASSOCIATION, AGREE TO BE BOUND BY THE PROVISIONS OF THIS SECTION 17.4. 17.4.1 Mediation. Subject to the provisions of Section 17.4.2.(h) below, and except for actions in small claims court or Disputes that have already been mediated, Owner, the Association and Declarant agree to submit any and all Disputes to mediation before commencing any arbitration. The cost of mediation shall be paid by Declarant. Each party to the mediation shall bear its own attorneys' fees and costs in connection with such mediation. 17.4.2 Arbitration. (a) Agreement to Arbitrate. If a dispute is not resolved through mediation, the Association, each Owner and Declarant shall resolve such Dispute exclusively through binding arbitration in the county in which the Property is located. This arbitration provision shall apply to Disputes of any kind or nature regardless of the nature of the relief sought. (b) Waiver of Trial by Judge or Jury. By agreeing to resolve all Disputes through binding arbitration, the Association, each Owner and Declarant each give up the right to have their respective claims and defenses decided by a judge or a jury. All claims and defenses shall instead be decided by the arbitrator, or by the appeal arbitrators if applicable. (c) Rules Applicable to All Cases. The arbitration will be conducted by Judicial Arbitration and Mediation Services ("JAMS") in accordance with the JAMS rules ("JAMS Rules") then applicable to the claims presented, as supplemented by this Section 17.4. The following supplemental rules shall apply to all arbitration proceedings and shall govern in the event of a conflict between the rules set forth below and the rules of JAMS Rules. (d) Qualifications of Arbitrators. The arbitrator shall be neutral and impartial and either a retired judge or a member or former member of the California State Bar with at least fifteen (15) years experience as a practicing lawyer. 3778561.5 CC&RS 31096.51 — WPH/AIcgria at Spanish Walk 65 Non -Order Search Doc: RV:2007 00544311 Page 72 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM (e) Appointment of Arbitrator. The arbitrator to preside over the Dispute shall be selected in accordance with the JAMS Rules, but no later than sixty (60) days after a notice of claim is filed. (f) Expenses. All fees charged by JAMS and the arbitrator shall be advanced by the Declarant. If the Declarant is the prevailing party in the arbitration, the arbitrator may, in its discretion and only to the extent permitted by law and the JAMS Minimum Standards of Procedural Fairness, direct the Owner or the Association, as applicable, to reimburse the Declarant for the Owner's or Association's, as applicable, pro rata share of the JAMS fee and arbitrator's fee advanced by the Declarant. (g) Venue. The venue of the arbitration shall be in the County where the Project is located unless the parties agree in writing to another location. (h) Preliminary Procedures. If state or federal law requires the Association or an Owner or Declarant to take steps or procedures before commencing an action in court, then the Owner or Declarant must take such steps or follow such procedures, as the case may be, before commencing the arbitration. For example, any claims or Disputes pursuant to California Civil Code Section 895 et. seq. as hereafter amended may be subject to the non - adversarial procedures set forth in California Civil Code Section 910 through 938, prior to the initiation of any arbitration or small claims court proceeding against Declarant. In addition, nothing contained herein shall be deemed a waiver or limitation of the provisions of California Civil Code Sections 1368.4, 1375, 1375.05 or 1375. i . (i) Participation by Other Parties. The Association, an Owner and Declarant, to the extent any such party is defending a claim in the arbitration, may, if it chooses, have all necessary and appropriate parties included as parties to the arbitration. (j) Rules of Law. The arbitrator must follow California substantive law (including statutes of limitations) but strict conformity with the rules of evidence is not required, except that the arbitrator shall apply applicable law relating to privilege and work product. The arbitrator shall be authorized to provide all recognized remedies available at law or equity for any cause of action. (k) Attorneys' Fees and Costs. Each party shall bear its own attorneys fees and costs (including expert witness costs) in the arbitration. 17.4.3 Additional Rules Applicable To Certain Cases. In any arbitration in which a claim of Owner, the Association or Declarant exceeds Two Hundred Fifty Thousand Dollars ($250,000) in value, the following additional rules will supplement the JAMS Rules and govern in the event of a conflict between the following rules and the rules set forth above, the JAMS Rules, or both. (a) Qualifications of Arbitrator. In addition to the requirements of Section 17.4.1(d) above, the arbitrator shall be a retired judge of the California Superior Court, a California Court of Appeal, or the California Supreme Court. (b) Rules of Law. The California Evidence Code shall apply. 3778561.5 66 CC&RS 31096-51 — WPH/Alcgria at Spanish Walk Non -Order Search Doc: RV:2007 00544311 Page 73 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM (c) Written Decision. Within thirty (30) days after the hearing is closed, the arbitrator must issue a written decision. If an Owner, the Declarant or the Association request it, the arbitrator must issue a reasoned award. 17.4.4 Procedure for Appeal of Certain Cases. In any arbitration in which a claim or arbitration award of Owner, the Association or Declarant exceeds Five Hundred Thousand Dollars ($500,000) in value, Owner, the Association and Declarant hereby adopt and agree to the JAMS Optional Appeal Procedure. The following additional rules will supplement the JAMS Optional Appeal Procedure and govern in the event of a conflict between the following rules and the JAMS Optional Appeal Procedure. (a) Right of Appeal. There shall be no right to appeal unless the oral evidence received by the arbitrator was preserved in a manner such that it can be converted to an accurate and reliable written transcript. (b) Appellate Panel. An appeal shall be decided by one (1) neutral appeal arbitrator unless either party, within the time permitted for the appointment of the appeal arbitrator, elects to have the appeal decided by a panel of three (3) appeal arbitrators. Any party who elects to have an appeal decided by a panel of three (3) appeal arbitrators agrees to be solely responsible for the cost of having two (2) additional appeal arbitrators. The sole appeal arbitrator, or at least one member of any panel of three (3) arbitrators, shall have prior experience as a member of an appellate panel of the California Court of Appeal. (c) Issues on Appeal. The only issues that may be considered on appeal are: (1) the award of money was excessive; (2) the award of money was insufficient; (3) the arbitrator awarded non -monetary relief that was inappropriate; (4) a party who received non -monetary relief should have received other or additional relief. A majority of the appeal arbitrators may affirm the arbitration award or make any alternative award they find to be just, but they must not reject the arbitrator's decisions (a) that a particular party is entitled to relief of some nature or amount, or (b) that a particular party is responsible to provide relief of some nature or amount. (d) Expenses and Costs on Appeal. The fees charged by JAMS and the appeal arbitrator(s) shall be advanced by the Declarant, except as provided in Section 17.4.4(b) above. The party who files the appeal must, at its sole expense, provide JAMS and all non -appealing parties with a certified copy of the hearing transcript, and must provide JAMS with copies of all documentary evidence and all other tangible evidence received by the arbitrator. If more than one party appeals, the appealing parties must share equally the cost of the transcript and copies of all other documentary and tangible evidence received by the arbitrator. The appeal arbitrators may, within thirty (30) days of the decision, award costs of the nature provided in the Federal Rules of Appellate Procedure. If the Declarant is the prevailing party on appeal, the appeal arbitrator(s) may, in its or their discretion and only to the extent permitted by law and JAMS Minimum Standards Of Procedural Fairness, include the non - prevailing party(ies) pro rata share of the JAMS fee and arbitrator's fee advanced by the Declarant in the award of costs on appeal. 3778561.S CC&RS 31096-51 — WPHJAleria at Spanish Walk 67 Non -Order Search Doc: RV:2007 00544311 Page 74 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM (e) New Evidence. The appeal arbitrators must not receive new evidence. The appeal arbitrators must make their decision based only on the evidence that was presented to the arbitrator, except that the appeal arbitrators may visit any site involved in the Dispute. 17.4.5 Federal Arbitration Act. Because many of the materials and products incorporated into the Project are manufactured in other states, the development and conveyance of the Property evidences a transaction involving interstate commerce and the Federal Arbitration Act (9 U.S.C. §1, et seq.) now in effect and as it may be hereafter amended will govern the interpretation and enforcement of the arbitration provisions of this Declaration. 17.4.6 ARBITRATION OF DISPUTES. BY EXECUTING THIS DECLARATION, DECLARANT AND BY ACCEPTING A DEED TO ANY PORTION OF THE PROPERTY, EACH OWNER AND THE ASSOCIATION AGREE TO HAVE ANY DISPUTE DECIDED BY NEUTRAL ARBITRATION IN ACCORDANCE WITH THE FEDERAL ARBITRATION ACT AND THE CALIFORNIA ARBITRATION ACT, TO THE EXTENT THE CALIFORNIA ARBITRATION ACT IS CONSISTENT WITH THE FEDERAL ARBITRATION ACT, AND EACH OWNER, THE ASSOCIATION AND DECLARANT ARE GIVING UP ANY RIGHTS DECLARANT, EACH OWNER AND THE ASSOCIATION MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. DECLARANT, EACH OWNER AND THE ASSOCIATION ARE GIVING UP THEIR RESPECTIVE JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THIS SECTION 17.4. IF DECLARANT, ANY OWNER OR THE ASSOCIATION REFUSES TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, SUCH PARTY MAY BE COMPELLED TO ARBITRATE UNDER THE FEDERAL ARBITRATION ACT AND THE CALIFORNIA ARBITRATION ACT, TO THE EXTENT THE CALIFORNIA ARBITRATION ACT IS CONSISTENT WITH THE FEDERAL ARBITRATION ACT. 17.4.7 Final and Binding Award. The decision of the arbitrator or, if an appeal is heard, the decision of the appeal arbitrators, shall be final and binding. A petition to confirm, vacate, modify or correct an award may be filed in any court of competent jurisdiction in the county in which the Property is located, but the award may be vacated, modified or corrected only as permitted by the Federal Arbitration Act. 17.4.8 Severability. In addition to and without limiting the effect of any general severability provisions of this Declaration, if the arbitrator or any court determines that any provision of' this Section 17.4 is unenforceable for any reason, that provision shall be severed, and proceedings agreed to in this Section 17.4 shall be conducted under the remaining enforceable terms of this Section 17.4. 17.4.9 Application of Award. Any proceeds awarded to the Association arising from any Dispute by settlement, award or otherwise shall be applied in accordance with the provisions of Section 4.4.9 of this Declaration. 37 78561.5 CC&RS 31096.51 — WPHIAlegria at Spanish Walk 68 I Non -Order Search Doc: RV:2007 00544311 Page 75 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM ARTICLE 18 GENERAL PROVISIONS 18.1 Headings. The headings used in this Declaration are for convenience only and are not to be used to interpret the meaning of any of the provisions of this Declaration. 18.2 Severabilitv. The provisions of this Declaration shall be deemed independent and severable, and the invalidity or partial invalidity or unenforceability of any provision or provisions of it shall not invalidate any other provisions. In the event that any phrase, clause, sentence, paragraph, section, article or other portion of this Declaration shall become illegal, null. void, against public policy, or otherwise unenforceable, for any reason, the remaining portions of this Declaration shall not be affected thereby and shall remain in force and effect to the fullest extent permissible by law. 18.3 Cumulative Remedies. Each remedy provided for in this Declaration shall be cumulative and not exclusive. Failure to exercise any remedy provided for in this Declaration shall not, under any circumstances, be construed as a waiver. 18.4 Violations as Nuisance. Every act or omission in violation of the provisions of this Declaration shall constitute a nuisance and, in addition to all other remedies herein set forth, may be abated or enjoined by any Owner, any Member of the Board, the manager, or the Association. 18.5 No Racial Restriction. No Owner shall execute or cause to be recorded any instrument which imposes a restriction upon the sale, leasing or occupancy of its Residential Unit on the basis of race, sex, color or creed. 18.6 Access to Books. Declarant may, at any reasonable time and upon reasonable notice to the Board or manager, cause an audit or inspection to be made of the books and financial records of the Association. 18.7 Liberal Construction. The provisions of this Declaration shall be liberally construed to effectuate its purpose. Failure to enforce any provision hereof shall not constitute a waiver of the right to enforce said provision thereafter. 18.8 Notification of Sale of Condominium. Concurrently with the consummation of the sale of any Condominium under circumstances whereby the transferee becomes an Owner thereof, or within five (5) business days thereafter, the transferee shall notify the Board in writing of such sale. Such notification shall set forth the name of the transferee and its Mortgagee and transferor, the common address of the Condominium purchased by the transferee, the transferee's and the Mortgagee's mailing address, and the date of sale. Prior to the receipt of such notification, any and all communications required or permitted to be given by the Association, the Board or the manager shall be deemed to be duly made and given to the transferee if duly and timely made and given to said transferee's transferor. Mailing addresses may be changed at any time upon written notification to the Board. Notices shall be deemed received forty-eight (48) hours after mailing if mailed to the transferee, or to its transferor if the Board has received no notice of transfer as above provided, by certified mail return receipt requested, at the mailing address above specified. Notices shall also be deemed received on the 3778561.5 CC&RS 31096-51 - WPH/Alegria at Spanish Walk 69 Non -Order Search Doc: RV:2007 00544311 Page 76 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM next business day after being sent by overnight courier or upon delivery if delivered personally to any occupant of a Condominium over the age of twelve 02) years. 18.9 Number, Gender. The singular shall include the plural and the plural the singular unless the context requires the contrary, and the masculine, feminine and neuter shall each include the masculine, feminine or neuter, as the context requires. 18.10 Exhibits. All exhibits referred to in this Declaration are attached to this Declaration and incorporated by reference. 18.11 Binding Effect. This Declaration shall inure to the benefit of and be binding on the successors and assigns of the Declarant, and the heirs, personal representatives, grantees, tenants, successors and assigns of the Owners. 18.12 Easements Reserved and Granted. Any easements referred to in this Declaration shall be deemed reserved or granted, or both reserved and granted, by reference to this Declaration in the first deed by Declarant to any Condominium. 18.13 Statutory References. All references in this Declaration to various statutes, codes, regulations, ordinances and other laws shall be deemed to include those laws in effect as of the date of this Declaration and any successor laws as may be amended from time to time. 18.14 U.S. Department of Veteran Affairs Approval. So long as there is a Class B membership, the following action shall require the prior approval of the VA and the FHA: any reorganization, merger, dissolution, or consolidation of the Association, and any amendment to this Declaration, a draft of which shall be submitted to and approved by the VA prior to recordation. 18.15 Applicability of FHA/VA Regulations. For so long as FHA and/or VA blanket loan approvals are in effect for the Project and while any FHA/VA loan encumbers any Condominium in the Project, the FHA and VA guidelines and regulations shall apply to the Project to the extent that FHA or VA, respectively, asserts application of such guidelines and regulations and those guidelines and regulations are not in conflict with California law or with the requirements of the DRE. At such time as the blanket loan approvals are no longer in effect and no FHA or VA loans encumber any Residential Unit in the Project, the FHA and VA guidelines and regulations shall have no further applicability with respect to the Project. [REMAINDER OF PAGE INTENTIONALLY BLANK] 3778561.5 CURS 31096-51 — WMIVAlegria at Spanish Walk 70 Non -Order Search Doc: RV:2007 00544311 Page 77 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM IN WITNESS WHEREOF, Declarant has executed this instrument as of the date set forth above. DECLARANT: WESTERN PACIFIC HOUSING, INC., a Delaware corporation ASLA 3778561,5 CC&RS 11096.51 — WPlifAlegria at Spanish Walk By: Name: Its: 71 Non -Order Search Doc: RV:2007 00544311 Page 78 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM STATE OF CALIFORNIA ) COUNTY OF 9-;NQr5.i8Q- On a Ins{- q i d.Oc-i , before me, (A) c1 t j1 VY t)o l , Notary Public, personally appeared aar M . ,M v (s:* 'wI personally known to me ( ) to be the person$} whose name(s-) is/afe subscribed to the within instrument and acknowledged to me that he/she/they executed the same in Ins/her/them authorized capacity(ies), and that by his/her/tI .i signature(4 on the instrument the person4 or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Signature of Notary Public 3778561.5 CC&RS 31096-51 - WPIUAlegria at Spanish Walk Place Notary Seal Above at trolsoL Commission • 1719673 g Notary Public - Callfornlo Orange County KAv[':rxrxn E�ireeJan23,2011 Non -Order Search Doc: RV:2007 00544311 Page 79 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY PROPERTY: LOT 1 OF TRACT NO. 33837-1 IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 402, PAGES 4 TO 8, INCLUSIVE, OF MAPS, IN THE COUNTY RECORDER OF SAID COUNTY, EXCEPTING THEREFROM THE LOT 1 REMAINDER MODULE ("MAP"), AS SHOWN ON THAT CERTAIN CONDOMINIUM PLAN FOR ALEGR1A AT SPANISH WALK - PHASE 1, RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY CONCURRENTLY HEREWITH ("CONDOMINIUM PLAN"). ASSOCIATION PROPERTY: LOT I OF THE MAP, EXCEPTING THEREFROM THE COMMON AREA AND RESIDENTIAL UNITS LOCATED THEREIN AND FURTHER EXCEPTING THEREFROM THE LOT 1 REMAINDER MODULE, AS SHOWN ON THE CONDOMINIUM PLAN. 3778561.5 CC&RS 31096-51 - WPHIAlegria at Spanish Walk Non -Order Search Doc: RV:2007 00544311 Page 80 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM EXHIBIT "B" LEGAL DESCRIPTION OF ADDITIONAL PROPERTY THE LOT 1 REMAINDER MODULE AS SHOWN ON THE CONDOMINIUM PLAN FOR. ALEGRIA AT SPANISH WALK - PHASE 1, RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY CONCURRENTLY HEREWITH, WHICH IS LOCATED WITHIN LOT 1 OF TRACT NO. 33837-1 IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 402, PAGES 4 TO 8, INCLUSIVE, OF MAPS, IN THE COUNTY RECORDER OF SAID COUNTY. LOTS 11 AND 12 OF THE MAP. 3778561.5 CC&RS 310%-51 — WPWAlegria at Spanish Walk Non -Order Search Doc: RV:2007 00544311 Page 81 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM EXHIBIT "C" MAINTENANCE RESPONSIBILITY CHART Each Owner is responsible for the maintenance, repair and replacement of all elements of the Residential Unit, except as otherwise set forth below or in the Governing Documents. The Association is responsible for all of the maintenance, repair and replacement of the Association Property and the Common Area. Notwithstanding the foregoing, in the event of a casualty, the Association shall repair and replace all items covered by the Association's insurance. The Owner Maintenance Manual and the Association Maintenance Manual may also expand on the scope of the maintenance responsibilities set forth below. IMPROVEMENT MAINTENANCE OBLIGATION & RESPONSIBLE PARTY Clean Maintain Repair Replace Paint Resurface Repave The interior of the Residential Unit including, without limitation, all appliances. cabinets, plumbing fixtures and all other items within the Residential Unit whether free- standing or built in 0 0 0 0 0 0 (if applicable) N/A Utility Facilities and equipment which exclusively service the Residential Unit whether located in the Residential Unit, the Common Area or the Association Property N/A 0 0 0 N/A N/A N/A Windows enclosing a Residential Unit, including metal frames, tracks and exterior screens of glass doors and windows 0 (A -The exterior of inaccessible windows) 0 0 0 A (exterior of the window frame only) N/A N/A Doors (including without limitation the garage door) enclosing an Owner's Residential Unit 0 (interior) A (exterior) 0 0 0 0 to paint interior A to paint exterior N/A N/A "O" indicates an obligation of the Owner. "A" indicates an obligation ol'the Association. "CA" indicates an obligation oldie Community Association "N/A" indicates an obligation That is "not applicable." 3778561.5 CC&RS 31096-51 — WP1-31 Alegria al Spanish Walk Non -Order Search Doc: RV:2007 00544311 Page 82 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM Each Owner is responsible for the maintenance, repair and replacement of all elements of the Residential Unit, except as otherwise set forth below or in the Governing Documents. The Association is responsible for all of the maintenance, repair and replacement of the Association Property and the Common Area. Notwithstanding the foregoing, in the event of a casualty, the Association shall repair and replace all items covered by the Association's insurance. The Owner Maintenance Manual and the Association Maintenance Manual may also expand on the scope of the maintenance responsibilities set forth below. IMPROVEMENT MAINTENANCE OBLIGATION & RESPONSIBLE PARTY Clean Maintain Repair Replace Paint Resurface Repave Exclusive Use Areas (excluding any Improvements located within such areas and excluding any railings surrounding such areas) 0 0 A A A A N/A Railings enclosing an Exclusive Use Area 0 0 0 A A N/A N/A Exterior fixtures including Tight fixtures, photocells, and Tight bulbs not servicing the patio, balcony and front entry of the Residential Unit A A A A A Exterior fixtures including light fixtures, photocells and light bulbs servicing the balcony, patio and front entry of the Residential Unit 0 0 0 0 0 The individual lock for the Residential Unit's applicable mailbox (subject to Postal requirements) 0 0 0 0 N/A N/A N/A Established system of drainage within the Owner's Exclusive Use Easement Areas 0 0 0 0 -'O" indicates an obligation of the Owner. "A" indicates an obligation of the Association. "CA" indicates an obligation of the Community Association "N/A" indicates an obligation that is "not applicable." 3778561,5 CC&RS 31096-51 — WPtV Alegria at Spanish Walk 2 Non -Order Search Doc: RV:2007 00544311 Page 83 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM Each Owner is responsible except as otherwise set maintenance, repair and foregoing, in the event insurance. The Owner of the maintenance res'onsibilities for the maintenance, repair and replacement of all elements of the Residential Unit, forth below or in the Governing Documents. The Association is responsible for all of the replacement of the Association Property and the Common Area. Notwithstanding the of a casualty, the Association shall repair and replace all items covered by the Association's Maintenance Manual and the Association Maintenance Manual may also expand on the scope set forth below, IMPROVEMENT MAINTENANCE OBLIGATION & RESPONSIBLE PARTY Clean Maintain Repair Replace Paint Resurface Repave All Common Area including without limitation, roof, structural components, bearing walls, foundations, except for any Exclusive Use Easement Areas as provided herein A A A A A A A Association Property such as landscaping and open spaces situated within the Association Property, except for the Community Association Maintenance Areas and any Exclusive Use Easement Areas as provided herein A A A A A A A All Utility Facilities serving two or more Condominiums, and all private Utility Facilities whether located in the Association Property or Common Area N/A A A A N/A N/A NIA Cluster Mailboxes (excluding locks on individual mailboxes) A A A A A N/A N/A " O" indicatcs an obligation of the Owner. "A" indicates an obligation of the Association. "CA" indicates an obligation of the Community Association "NIA" indicates an obligation that is "not applicable." 3778561.5 CC&RS 31096.5I — WPFV Alegria ai Spanish Walk 3 Non -Order Search Doc: RV:2007 00544311 Page 84 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM Each Owner is responsible except as otherwise set maintenance, repair and foregoing, in the event insurance. The Owner of the maintenance responsibilities for the maintenance, repair and replacement of all elements of the Residential Unit, forth below or in the Governing Documents. The Association is responsible for all of the replacement of the Association Property and the Common Area. Notwithstanding the of a casualty, the Association shall repair and replace all items covered by the Association's Maintenance Manual and the Association Maintenance Manual may also expand on the scope set forth below. IMPROVEMENT MAINTENANCE OBLIGATION & RESPONSIBLE PARTY Clean Maintain Repair Replace Paint Resurface Repave Walls and railings on Association Property that do not enclose a Residential Unit's Exclusive Use Easement Area A A A A A N/A . N/A Community Association Maintenance Area CA CA CA CA CA CA CA "O" indicates an obligation of the Owner. "A" indicatcs an obligation of the Association. "CA" indicates an obligation attic Community Association "N/A" indicates an obligation that is "not applicable." 3778561.5 CC&RS 31006-51 — WPHJ Alegria at Spanish Walk 4 Non -Order Search Doc: RV:2007 00544311 Page 85 of 85 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM RECORDING REQUESTED BY: F7L Arnerff'o l i Li WHEN RECORDED MAIL TO: Luce, Forward, Hamilton & Scripps LLP 600 West Broadway, Suite 2600 San Diego, CA 92101-3372 Attn: Nancy T. Scull, Esq. DOC # 2007-0544312 08/23/2007 08:00A Fee:16.00 Page 1 of 4 Recorded in Official Records County of Riverside Larry W. Ward Assessor, County Clerk 8 Recorder 11111111111111111111111111111111 if 1J 111 11111 III! I111 S R U PAGE SIZE DA MJSC LONG RFD COPY . [ l M A L 465 426 PCOR NCOR SMF NCHG EXAM 0*3 IT: CTY UNI SUPPLEMENTARY DECLARATION OF ALEGRIA AT SPANISH WALK — PHASE 2 WESTERN PACIFIC HOUSING, INC., a Delaware corporation ("Declarant"), makes this Supplementary Declaration of Alegria at Spanish Walk ("Supplementary Declaration"), on 9 , 2007 with reference to the facts set forth below. RECITALS • ge-re-&" A. Declarant caused to be filed for record on fle, U-rrei in the Official Records of County of Riverside, California, as Instrument No. n ret ' Li hie reaka, that certain Declaration of Covenants, Conditions and Restrictions of Alegria at -Spanish Walk ("Declaration"). B. Pursuant to the terms of the Declaration, the real property described in Exhibit "A" attached hereto and incorporated herein ("Phased Property") may be annexed into the Alegria at Spanish Walk Homeowners Association, a California nonprofit mutual benefit corporation ("Association") and made subject to the Declaration. The Phased Property is a portion of the Additional Property as shown on Exhibit "B" to the Declaration. C. Declarant desires to annex the Phased Property to the Declaration and into the Association. By such annexation, Declarant intends that the covenants, conditions and restrictions of the Declaration shall apply to the Phased Property in the same manner as if it were originally covered by the Declaration. This Supplementary Declaration shall not be deemed to affect the provisions of the Declaration as covenants running with the land or as equitable servitudes to be uniformly applicable to all portions of the property covered by the Declaration, including those portions added thereto by annexation. NOW THEREFORE, Declarant declares as follows: 1. Annexation of Phased Property. Upon the recordation of this Supplementary Declaration in the Office of the County Recorder of Riverside County, the annexation of the real property described in Exhibit "A" shall be and become accomplished and all of the incidents of annexation, as set forth in the Declaration, shall be in full force and effect. WPII / Alegira Supplementary Dec — Phase 2 31096-51 / 3787982.2 THIS INSTRUMENT IS RECORDED IN THE COUNTY OF RIVERSIDE AT THE REQUEST OF FIRST AMERICAN TITLE COMPANY AS AN ACCOMMODATION ONLY. IT HAS NOT I3EEN EXAMINED AS TO ITS EXECUTION OR AS TO ITS EFFECT UPON THE TITLE. Non -Order Search Doc: RV:2007 00544312 Page 1 of 4 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM 2. Application of Association Restrictions. The terms and provisions of the covenants, conditions and restrictions of the Declaration shall apply to the Phased Property as if such property were originally covered by the Declaration. 3. Association Property. The Association Property within the Phased Property which is being annexed shall consist of the real property identified as Association Property on Exhibit "A." 4. Effect of This Supplementary Declaration, This Supplementary Declaration shall not be deemed to affect the Declaration as covenants running with the land or equitable servitudes, all of which shall be uniformly applicable to all portions of the Community, including those portions added thereto pursuant to this annexation. 5. Interpretation. Unless the context otherwise requires, all words, terms and phrases used in this Supplementary Declaration shall have the meaning ascribed thereto in the Declaration. IN WITNESS WHEREOF, this Supplementary Declaration has been executed as of the date first above written. WP11 / Alegira Supplementary Dec — Phase 2 31096-51 /3787982.2 WESTERN PACIFIC HOUSING, INC., a Delaware corporation By: 111�Gl;LQ, ZI�M Name: Title: 2 fit, 1' K-1.1I1'ce cr..uri'4t Non -Order Search Doc: RV:2007 00544312 Page 2 of 4 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM STATE OF CALIFORNIA COUNTY OF i-tV'(l. S r4e ) OnAuo,11UST a1a00-7 , before me, �i��i t S�,fi�nl ND1=Zr J personably appeared art-, afa M. �� u r �c ivs i personally known to me ( basis of to be the person{s3 whose name(s) is/afe subscribed to the within instrument and acknowledged to me that -lie/she/trey executed the same in •hris/her/their authorized capacity(tes ); and that by his/her/their signature( on the instrument the person{&), or the entity upon behalf of which the personet) acted, executed the instrument. WITNESS my hand and official seal. 4✓� Si�to9 Signature W PI l / A legria Supplementary Dec — Phase 2 31096-51 / 3787982.2 WALIER Commission • 1719673 Notary Public - California Orange County - !!Cc anF esJt�23.2 12 alt (Seal) Non -Order Search Doc: RV:2007 00544312 Page 3 of 4 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM EXHIBIT "A" PHASED PROPERTY PROPERTY: MODULE B, AS SHOWN ON THAT CERTAIN CONDOMINIUM PLAN FOR. ALEGRIA AT SPANISH WALK -PHASE 2, RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF COUNTY OF RIVERSIDE, CALIFORNIA, CONCURRENLTY HEREWITH ("CONDOMINIUM PLAN"), WHICH IS LOCATED WITHIN LOT 1 OF TRACT NO. 33837- 1 IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 402, PAGES 4 TO 8, INCLUSIVE, OF MAPS, IN THE COUNTY RECORDER OF SAID COUNTY ("MAP"). ASSOCIATION PROPERTY: MODULE B, EXCEPTING THEREFROM THE BUILDING ENVELOPES, AS SHOWN ON THE CONDOMINIUM PLAN, WHICH IS LOCATED WITHIN LOT 1 OF THE MAP. WPH / Alegria Supplementary Dec — Phase 2 31096-51 / 3787982.2 Non -Order Search Doc: RV:2007 00544312 Page 4 of 4 Requested By: melaniemurphy, Printed: 8/23/2023 4:24 PM From: Chantel Broyles To: Miriam Miller Subject: Fwd: 255 Calle Siempre Date: Monday, August 28, 2023 1:35:27 PM Attachments: We sent you safe versions of your files.msq 3550- Electrical Letter.pdf Mimecast Attachment Protection has deemed this file to be safe, but always exercise caution when opening files. Please see previous email below. I very much need my power turned on so I can restore my property. People are displaced out of house and home and coming out of pocket a ton of money for a hotel. I have been on the phone with your depai fluent, IID, HOA, exchanging information with neighbors, and I cant seem to get anywhere. Most of my neighbors have their power on, but I still do not. Please tell me what more you need and how I can get this expedited. Chantel Broyles 760-296-2690 Forwarded message From: Chantel Broyles <chantelbroyles@gmail.com> Date: Fri, Aug 25, 2023 at 10:51 Subject: 255 Calle Siempre To: <mmiller@palmdesert.gov> Ms Miller, Please see attached as proof of inspection at 255 Calle Siempre, Palm, Desert, California, 92211. Feel free to contact me with any questions. Chantel Broyles 760-296-2690 CORONA LIGHTING & ELECTRIC,1 NC. Friday, August 25, 2023 To Whom It May Concern: I, Kristopher Warren, C-10 Licence Holder For Corona Lighting & Electric, Inc. Verify That The Main Meter Electric Service Panel Is Properly Installed With All Branch Circuit Breakers Terminated & Is Ready To Be Entergized At 255 Calle Siempre In Palm Desert, CA 92211. If You Have Any Further Questions fel Free To Contact Me At Anytime. Sincerely, Kristopher Warren President -CEO Corona Lighting & Electric, Inc. E-MAIL kris@clandeinc.com P.D. Box 13730 CPalm Desert, CA 92255-3730 PHONE (760) 321-8700 'FAX (760) 321-8772 LIC # 1055931 From: Chris Escobedo To: Miriam Miller Subject: Re: Spanish Walk Update - All BLDGS Ready for Power Date: Tuesday, August 29, 2023 1:53:13 PM Attachments: image001.pnq image002.joq Just forwarded you an email with her contact and some quick background as of this morning. Chris Escobedo Assistant City Manager 760.776.6319 cescobedo@palmdesert.gov I www.palmdesert.gov 73510 Fred Waring Drive, Palm Desert, CA, 92260 From: Miriam Miller <mmiller@palmdesert.gov> Date: Tuesday, August 29, 2023 at 1:36 PM To: Chris Escobedo <cescobedo@palmdesert.gov> Subject: RE: Spanish Walk Update - All BLDGS Ready for Power Hi Chris, Do you have her number? Thank you, Miriam Miller Office Assistant II 760.776.6431 mmiller@palmdesert.gov I www.palmdesert.gov 73510 Fred Waring Drive, Palm Desert, CA, 92260 From: Chris Escobedo <cescobedo@palmdesert.gov> Sent: Tuesday, August 29, 2023 1:31 PM To: Miriam Miller <mmiller@palmdesert.gov>; Jason Finley <jfinley@palmdesert.gov>; Richard Cannone <rcannone@palmdesert.gov>; Martin Alvarez <malvarez@palmdesert.gov> Cc: Rosie Lua <rlua@palmdesert.gov>; Permit Center <permitcenter@palmdesert.gov>; Amy Lawrence <alawrence@palmdesert.gov>; Randy Chavez <rchavez@palmdesert.gov> Subject: Re: Spanish Walk Update - All BLDGS Ready for Power I spoke to her this morning and she indicated her power was still out. Yes, please reach out to her. Chris Escobedo Assistant City Manager 760.776.6319 cescobedo@palmdesert.gov I www.palmdesert.gov 73510 Fred Waring Drive, Palm Desert, CA, 92260 From: Miriam Miller <mmiller@palmdesert.gov> Date: Tuesday, August 29, 2023 at 8:57 AM To: Jason Finley <jfinley@palmdesert.gov>, Chris Escobedo <cescobedo@palmdesert.gov>, Richard Cannone <rcannone@palmdesert.gov>, Martin Alvarez <malvarez@palmdesert.gov> Cc: Rosie Lua <rlua@palmdesert.gov>, Permit Center <permitcenter@palmdesert.gov>, Amy Lawrence <alawrence@palmdesert.gov>, Randy Chavez <rchavez@palmdesert.gov> Subject: RE: Spanish Walk Update - All BLDGS Ready for Power Good Morning, I have not received the electricians report for this address yet. I can contact the homeowner to help with the process. Thank you, Miriam Miller Office Assistant II 760.776.6431 mmiller@jpalmdesert.gov I www.palmdesert.gov 73510 Fred Waring Drive, Palm Desert, CA, 92260 U From: Jason Finley <jfinleyPpalmdesert.gov> Sent: Tuesday, August 29, 2023 8:44 AM To: Chris Escobedo <cescobedoPoalmdesert.gov>; Richard Cannone <rcannone@oalmdesert.gov>; Martin Alvarez <malvarez@palmdesert.gov> Cc: Rosie Lua <rlua@oalmdesert.gov>; Miriam Miller <mmillerPoalmdesert.gov>; Permit Center <permitcenter@palmdesert.gov>; Amy Lawrence <alawrence@palmdesert.gov>; Randy Chavez <rchavez@palmdesert.gov> Subject: RE: Spanish Walk Update - All BLDGS Ready for Power I have not received any phone or email communications for 254 Paseo Bravo. Miriam, can you check your end too? Jason Finley Chief Building Official 760.776.6428 jfinley(@palmdesert.gov I www.palmdesert.gov 73510 Fred Waring Drive, Palm Desert, CA, 92260 From: Chris Escobedo <cescobedo@palmdesert.gov> Sent: Tuesday, August 29, 2023 8:40 AM To: Jason Finley <jfinley@palmdesert.gov>; Richard Cannone <rcannone@palmdesert.gov>; Martin Alvarez <malvarezPpalmdesert.gov> Cc: Rosie Lua <rlua@palmdesert.gov>; Miriam Miller <mmiller@palmdesert.gov>; Permit Center <permitcenterPpalmdesert.gov>; Amy Lawrence <alawrencePpalmdesert.gov>; Randy Chavez <rchavez@palmdesert.gov> Subject: RE: Spanish Walk Update - All BLDGS Ready for Power Jason, Can you provide me an update specifically on 254 Paseo Bravo. Has it been restored? Chris Escobedo Assistant City Manager 760.776.6319 cescobedo@palmdesert.gov I www.palmdesert.gov 73510 Fred Waring Drive, Palm Desert, CA, 92260 From: Jason Finley <ifinleyPaalmdesert.gov> Sent: Monday, August 28, 2023 11:56 AM To: Richard Cannone <rcannonePoalmdesert.gov>; Chris Escobedo <cescobedo@oalmdesert.gov>; Martin Alvarez <malvarez@palmdesert.gov> Cc: Rosie Lua <rlua@palmdesert.gov>; Miriam Miller <mmiller@palmdesert.gov>; Permit Center <permitcenter@palmdesert.gov>; Amy Lawrence <alawrence@palmdesert.gov>; Randy Chavez <rchavezPoalmdesert.gov> Subject: Spanish Walk Update - All BLDGS Ready for Power Good Morning ALL. I just spoke with Shanna with the Spanish Walk —Alegria HOA. Their electrician has completed their evaluation and cleared all buildings for power. This completes IlD's request. All buildings are downgraded to green or have no restrictions to occupancy once their power is restored and they provide us with their own electrician's evaluation. Miriam will continue to send IID reconnection requests as we get them. Please direct the homeowners to the IID 1-800-303-7756 call center for reconnections of service. Here is a current list of addresses we received reports and ready for service or are energized: 244 — 246 — 248 — 252 Paseo Bravo 256 — 258 — 260 — 262 Paseo Bravo 251— 253 — 255 — 257 — 259 Calle Siempre 263 — 265 Calle Siempre Jason Finley Chief Building Official 760.776.6428 jfinley@palmdesert.gov1www.palmdesert.gov 73510 Fred Waring Drive, Palm Desert, CA, 92260 Palm Desert Responds E-Sig (2).jpg Gloria Sanchez From: Jason Finley Sent: Wednesday, January 17, 2024 8:32 AM To: Gloria Sanchez Cc: Miriam Miller Subject: RE: Broyles v City of Palm Desert - Claim 3049828 (Spanish Walk) Good Morning Gloria. Emails: I did a quick search and the only emails between Building and this property was to receive the electrical report affirming the residence could be re -energized. And, this property address was listed within lists keeping account of re-energization. I did correspond with the HOA property manager and provide them instructions if a property needed to be repaired. Do you want those as well? Permitting: This property has an active building permit for storm damage repair (drywall and insulation). The last inspection was November 21, 2023. Miriam, do you have anything from 255 Calle Siempre? Jason Finley Chief Building Official City of Palm Desert 73510 Fred Waring Drive, Palm Desert, CA 92260 jfinley@palmdesert.gov 1760.776.6428 I www.palmdesert.gov Meet our special guest! Sunday, January 21 2:00- 4:00 PM Palm Desert YMCA Tuesday, January 23 9:50 - 11:50 AM Palm Desert iHub From: Gloria Sanchez <gsanchez@palmdesert.gov> Sent: Tuesday, January 16, 2024 6:21 PM To: Jason Finley <jfinley@palmdesert.gov> Subject: Broyles v City of Palm Desert - Claim 3049828 (Spanish Walk) Importance: High Hi Jason, We are working on a response to the questions regarding the subject claim. One of the questions asks about the correspondence and contact with the claimant regarding repair of his property at 255 Calle Siempre, Palm Desert, CA 92211. 1 Chris Escobedo suggested I reach out to you to obtain correspondence and all the records your Division has regarding repairs to the subject property due to the damage caused by Storm Hilary in August of 2023. We must respond to the attorneys assisting the City and CJPIA by Friday, January 19. Sorry, for the last-minute notice, the group just had the opportunity to meet this morning to review and compose a response to the list of questions in the email attached. Thank you for your time. Gloria M. Gloria Sanchez Records Coordinator City of Palm Desert 73510 Fred Waring Drive, Palm Desert, CA 92260 gsanchez@palmdesert.gov l 760.776.6354 I www.palmdesert.gov Sunday, January 21 2:00- 4:00 PM Palm Desert YMCA Tuesday, January 23 9:50 - 11:50 AM Palm Desert 'Hub 2 Gloria Sanchez From: Claudia Bray <cbray@carlwarren.com> Sent: Tuesday, December 26, 2023 9:22 AM To: Tim Varon Cc: Gloria Sanchez; Andrea Staehle; Richards, Edwin J.; Reyes, Margo A.; Grochow, Kevin J. Subject: Diary Review: Broyles v. City of Palm Desert CJP-3049828 DIARY REVIEW Event: The Claimant contends that the City is responsible for an inverse condemnation claim for having the storm drain system fail and for failing to return power to the loss location, along with failing to provide permits in the restoration of his property. Per claimant at least 37 homes were in 3 feet of water. Statute of Limitations: 08/20/2025 Action plan items from last review and status: 1. Determine who owns, maintains, and controls the drainage system. This is pending as fact development is under way with defense counsel. 2. Determine what was the cause of the backup. This is pending as fact development is under way with defense counsel. 3. Determine how much rainfall, winds, etc was experienced by the city. This incident occurred during Hurricane Hillary. 4. Determine if area flooding occurs during normal conditions. This is pending as fact development is under way with defense counsel. 5. Secure inspection and maintenance records for the drainage system. This is pending as fact development is under way with defense counsel. 6. When city staff were called out to the location, what did they do and what happened? This is pending as fact development is under way with defense counsel. 7. Did the homeowner take protective measures, ie sandbags? This is pending as fact development is under way with defense counsel. 8. Assign defense counsel in anticipation of further claims/lawsuits related to flooding in the neighborhood. This will continue to be my plan. 9. Finalize liability. This will continue to be my plan. Coverage: This type of claim would be covered under the MOC Liability Review: Under review. Fact development is under way with defense counsel. Claim stage referral no lawsuit as of yet and only one of several property owners has filed a claim. City experienced unusual weather, Hurricane Hillary, that brought heavy rain and winds. The claimant alleges that during the storm drainage system failed to operate properly and caused flood water damage to his unit. We need to determine who owns, maintains, and controls the drainage system we i also need to determine if there were any delays in restoring electrical power after the storm and in issuing permits to allow repair and restoration work to take place in a timely manner. The claimant alleges that the delays exacerbated the growth of mold in his unit, and he lost rental income for a month or more. Damages Review — Flood damage to property and loss of rental income for over a month of rental. Submitted Medical Bills: NA Considered: NA Residuals: NA Loss of Earnings Alleged: NA Reserve Review: $25,000-adequate based on current info. Updated Action Plan: 1. The file has been sent to defense counsel to complete fact development and determine if any potential exposure to the city. I will continue to work closely with defense counsel to form a defense for the city. 2. Any new claims that come in will also be referred to defense counsel. 3. Secure initial Pre -litigation budget from defense counsel. Subrogation Referral: NA Claudia Bray Sr Claims Examiner cbray@carlwarren.com Tel: (657) 622-4216 1 Fax: (866) 254-4423 CARL WARREN & COMPANY A VENBROOK COMPANY Carl Warren & Company, LLC CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, proprietary, non-public and/or privileged. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this email in error, please delete it from your system and advise the sender immediately. Please be advised that we are unable to bind, endorse or amend coverage via voicemail, email, or facsimile until confirmed in writing by an authorized representative of this office. We accept no 2 liability for any damage caused by any virus transmitted by this email. It is your responsibility to check this email (including any attachments) for viruses. Gloria Sanchez From: Reyes, Margo A. <margo.reyes@kutakrock.com> Sent: Friday, October 27, 2023 5:01 PM To: Bray, Claudia Cc: Paul Zeglovitch (pzeglovitch@cjpia.org); Gloria Sanchez Subject: Broyles v City of Palm Desert (3049828)-Initial Status Report 27Oct2023 Attachments: Broyles v City of Palm Desert (3049828)-Initial Status Report 27Oct2023.pdf Your attachments have been security checked by Mimecast Attachment Protection. Files where no threat or malware was detected are attached. Re: Broyles v City of Palm Desert (3049828) Ms. Bray, Please see the attached regarding the above matter, sent on behalf of Ed Richards, Esq. Thank you. Margo A. Reyes I Legal Assistant KUTAKROCK margo.reyes@kutakrock.com I www.KutakRock.com 5 Park Plaza, Suite 1500, Irvine, CA 92614 D: 949.417.0994 1 0: 949.417.0999 I F: 949.417.5394 Authorized E-Service Address: irvineintake@kutakrock.com This E-mail message is confidential, is intended only for the named recipients above and may contain information that is privileged, attorney work product or otherwise protected by applicable law. If you have received this message in error, please notify the sender at 402-346-6000 and delete this E-mail message. Thank you. i KUTAKROCK Kutak Rock LLP 5 Park Plaza, Suite 1500, Irvine, CA 92614-8595 office 949.417.0999 Edwin J. Richards edwin.richards@kutakrock.com October 27, 2023 VIA EMAIL Ms. Claudia Bray CARL WARREN & COMPANY P.O. Box 2411 Tustin, CA 92781 Re: Broyles v. City Of Palm Desert Member Agency City of Palm Desert Claimant Jacob Broyles D/Loss 8/20/2023 File No. 3049828 CJPIA Rank unknown Pre -Litigation Dear Ms. Bray: Thank you once again for referral of the matter to our office. It is still in the claims stage and no lawsuit has been filed, but one of several property owners has filed a claim. Allow me to provide this initial status report based on the limited information available. I will submit a pre - litigation budget under separate cover. FACTS The claimant is Jacob Broyles who owns a residential rental unit at 255 Calle Siempre in Palm Desert. In August 2023 Southern California experienced an unusual weather event referred to as Hurricane Hilary that brought heavy rain and winds. The claim alleges that during the storm a drainage system that served the area where 255 Calle Siempre is located failed to operate properly and caused flood water damage to his unit and 37 other homes in the area. Broyles is the only individual that has filed a claim as of this date, and none of the other 37 property owners have filed claims. At this early state we have no information regarding the storm drain system that allegedly failed, including the manner in which it allegedly failed or who owns, maintains and controls the system. In fact, it is interesting to note that the claim does not specifically allege that the Claimant's damage was caused by a drainage system owned, maintained or controlled by the City. Rather, the allegation in the claim is that the City was slow in restoring electrical power after the storm, and in issuing permits to allow repair and restoration work to take place in a timely manner. The claim by Broyles alleges that those delays exacerbate the growth of mold in his unit that was caused by the flood event, and he lost rental income for a month or more until the unit at 255 Calle Siempre could be restored and repaired. 4895-7337-8442.2 11317-359 PRIVILEGED AND CONFIDENTIAL ATTORNEY -CLIENT COMMUNICATION AND/OR WORK PRODUCT rv'. 1 Yf\1mCV\^if\ Ms. Claudia Bray October 27, 2023 Page 2 LIABILITY The claim does not identify the theory of liability that the claim is based upon. However, based on the facts alleged in the claim, the following potential causes of action could be asserted if a lawsuit is filed. I would expect causes of action for inverse condemnation and dangerous condition of public property to be asserted. In order to prevail with an inverse condemnation cause of action the claimant must establish that the Claimant's damage was caused by a city improvement or project, such as a city drainage system. A claim for dangerous condition of public property will require the Claimant to prove that the damage to 255 Calle Siempre was caused by a city owned drainage system that was in a deficient condition that created an unreasonable risk of harm to neighboring property of which the City had notice, and that the City failed to remedy the condition or warn to its existence. As you can see, initial investigation should be directed at identifying the drainage system that the Claimant claims failed to operate properly, and whether the City owns, maintains or controls that drainage system. CLAIMED DAMAGES The claim alleges property damage to 255 Calle Siempre in the amount of $13,262. In support of the claim, the claimant submits a proposal by a contractor (Bucklar Construction) for repairs to the unit in the amount in $13,262. The invoice describes the work to consist of replacement of drywall in the unit. The claim alleges that 255 Calle Siempre experienced standing water in the and around the unit of 3 feet in depth. Based on our experience with similar flood events, I anticipate that the scope of repairs will be replacement of the bottom portion of drywall throughout the house plus cabinets and flooring. I anticipate that the eventual claim for the cost of repair will be substantially more than the $13,262 listed in the current claim. The claim provides no information or documentation to support the loss of income claim. Keep in mind that if the claimant files a lawsuit and includes in that lawsuit a cause of action for inverse condemnation, and if he prevails with that cause of action, he will be entitled to recovery of attorney and expert fees in addition to compensatory damages. PROCEDURAL STATUS OF THE CLAIM The claim was filed on September 22, 2023. The Government Code provides that if the claim is not acted on within 45 days it will be deemed denied. That 45 day deadline is November 6, 2023. As you know, if you formally deny the claim within that 45 day window the Plaintiff will have 6 months in which to file a lawsuit. If you elect to take no action of the claim, it will be deemed denied on November 6, 2023, and the claimant will then have 2 years from the date of the loss to file a lawsuit. RECOMMENDED INVESTIGATION AND ANALYSIS I recommend that we promptly contact the City to identify the drainage system that services the neighborhood in which 255 Calle Siempre is located, and determine whether the City owns, maintains or controls it. We should also ask the appropriate staff members at the City to provide 4895-7337-8442.2 11317-359 PRIVILEGED AND CONFIDENTIAL ATTORNEY -CLIENT COMMUNICATION AND/OR WORK PRODUCT t'\V i r\�V^ir\ Ms. Claudia Bray October 27, 2023 Page 3 details with regard to the restoring electrical service to the community following the rainstorm including whether those efforts were undertaken by the City or a private utility company so that we may address the Claimant's complaints of delay in restoring power to the neighborhood. We should also ask the City for all permit applications submitted by the Claimant for repairs to 255 Calle Siempre following the storm event, and all city documents related to its processing of those permit applications in order to evaluate the Claimant's complaints of delay. Your file reflects that you may already be contacting the City to obtain this information. May I ask you to please confirm whether you have already requested that information from the City, and if not, would you like me to do that. I look forward to working with you on this matter. Very truly yours, r Edwin J. Richards EJR:mar Cc: California JPIA-Liability Program Manager Gloria Sanchez- City of Palm Desert 4895-7337-8442.2 11317-359 PRIVILEGED AND CONFIDENTIAL ATTORNEY -CLIENT COMMUNICATION AND/OR WORK PRODUCT Gloria Sanchez From: Reyes, Margo A. <margo.reyes@kutakrock.com> Sent: Friday, October 27, 2023 5:00 PM To: Gloria Sanchez Subject: Broyles Claim- Kutak Rock LLP Correspondence dated 27Oct2023 Attachments: Broyles Claim- Kutak Rock LLP Correspondence dated 27Oct2023.pdf Your attachments have been security checked by Mimecast Attachment Protection. Files where no threat or malware was detected are attached. Re: Broyles Claim Ms. Sanchez, Please see the attached, sent on behalf of Ed Richards, Esq. Thank you. Margo A. Reyes I Legal Assistant KUTAKROCK margo.reyes@kutakrock.com I www.KutakRock.com 5 Park Plaza, Suite 1500, Irvine, CA 92614 D: 949.417.0994 1 0: 949.417.0999 I F: 949.417.5394 Authorized E-Service Address: irvineintake@kutakrock.com This E-mail message is confidential, is intended only for the named recipients above and may contain information that is privileged, attorney work product or otherwise protected by applicable law. If you have received this message in error, please notify the sender at 402-346-6000 and delete this E-mail message. Thank you. i 1 KUTAKROCK Kutak Rock LLP 5 Park Plaza, Suite 1500, Irvine, CA 92614-8595 office 949.417.0999 Edwin J. Richards edwin.richards@kutakrock.com October 27, 2023 VIA EMAIL gsanchez@plmdesert.gov Gloria Sanchez Records Coordinator, City Clerk's Office 73510 Fred Waring Drive Palm Desert, CA 92260 Re: Broyles v. City Of Palm Desert Carl Warren File No.: 3049828 Dear Ms. Sanchez: I am writing to introduce myself and our law firm. We have been retained by the California Joint Powers Insurance Authority (CJPIA) to assist them with regard to the above referenced claim that has been filed against the City. I will be working with Ms. Bray at Carl Warren & Co. to investigate the facts on which this claim is based. My contact information is contained in this letter and I invite you to call me if you have questions or with to discuss any aspect of this claim. I look forward to working with you. EJR:mar Very truly yours, Edwin J. Richards 4884-3832-5643.1 11317-359 PRIVILEGED AND CONFIDENTIAL ATTORNEY -CLIENT COMMUNICATION AND/OR WORK PRODUCT Gloria Sanchez From: Claudia Bray <cbray@carlwarren.com> Sent: Thursday, October 26, 2023 11:48 AM To: Tim Varon Cc: Gloria Sanchez; Andrea Staehle; Amber Molina; Richards, Edwin J.; Reyes, Margo A. Subject: Diary Review: Broyles v. City of Palm Desert CJP-3049828 DIARY REVIEW Event: The Claimant contends that the City is responsible for an inverse condemnation claim for having the storm drain system fail and for failing to return power to the loss location, along with failing to provide permits in the restoration of his property. Per claimant at least 37 homes were in 3 feet of water. Statute of Limitations: 08/20/2025 Action plan items from last review and status: 1. Determine who owns, maintains, and controls the drainage system. This is pending as fact development is under way with defense counsel. 2. Determine what was the cause of the backup. This is pending as fact development is under way with defense counsel. 3. Determine how much rainfall, winds, etc was experienced by the city. This incident occurred during Hurricane Hillary. 4. Determine if area flooding occurs during normal conditions. This is pending as fact development is under way with defense counsel. 5. Secure inspection and maintenance records for the drainage system. This is pending as fact development is under way with defense counsel. 6. When city staff were called out to the location, what did they do and what happened? This is pending as fact development is under way with defense counsel. 7. Did the homeowner take protective measures, ie sandbags? This is pending as fact development is under way with defense counsel. 8. Assign defense counsel in anticipation of further claims/lawsuits related to flooding in the neighborhood. This will continue to be my plan. 9. Finalize liability. This will continue to be my plan. Coverage: This type of claim would be covered under the MOC Liability Review: Under review. Fact development is under way with defense counsel. Damages Review — Flood damage to property and loss of rental income for over a month of rental. Submitted Medical Bills: NA Considered: NA Residuals: NA 1 Loss of Earnings Alleged: NA Reserve Review: $25,000-adequate based on current info. Updated Action Plan: 1. The file has been sent to defense counsel to complete fact development and determine if any potential exposure to the city. I will continue to work closely with defense counsel to form a defense for the city. 2. Any new claims that come in will also be referred to defense counsel. 3. Secure initial litigation plan & budget from defense counsel. Subrogation Referral: NA Claudia Bray Sr Claims Examiner cbray@carlwarren.com Tel: (657) 622-4216 1 Fax: (866) 254-4423 CARL WARREN & COMPANY A VENBROOK COMPANY Carl Warren & Company, LLC CA Entity License No: 2607296 www.carlwarren.com PO Box 2411, Tustin, CA, 92781 Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, proprietary, non-public and/or privileged. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this email in error, please delete it from your system and advise the sender immediately. Please be advised that we are unable to bind, endorse or amend coverage via voicemail, email, or facsimile until confirmed in writing by an authorized representative of this office. We accept no liability for any damage caused by any virus transmitted by this email. It is your responsibility to check this email (including any attachments) for viruses. 2 Gloria Sanchez From: Tim Varon <TVaron@carlwarren.com> Sent: Tuesday, September 26, 2023 2:06 PM To: Gloria Sanchez Cc: Claudia Bray; Andrea Staehle; Amber Molina Subject: FW: File # 3049828 - Palm Desert - Jacob Broyles Attachments: Claim Against the City of Palm Desert For Damage(s.pdf; B43BD731-7FE3-499B-AF5E- B7F004C8B442jpeg;7F037C53-8A54-443C-B974-D1A371B94146.jpeg;E718A431- A6F1-476B-98B1-987FE6AB2F31jpeg; B504FDC0-8150-4D48-8260-93C664C8BF5Cjpeg;B1OECCA5-E170-4ECB-B048- CB0EB7558623 jpeg; 8C364B0E-9861-4CF7-A308-33F9B2351 BDB.jpeg; 20230926 Broyles Palm Desert NOTIFICATION LETTER 3049828.pdf Hi Gloria, Please find attached a copy of our Notification Letter for your records. Have a great day! Tim Tim Varon Claims Supervisor TVaron@carlwarren.com Tel: (657) 622-4287 I Fax: (866) 254-4423 CARL WARREN & COMPANY A VENBROOK COMPANY Carl Warren & Company, LLC CA Entity License No: 2607296 www.carlwarren.com Because Quality and Integrity Matter... please EMAIL my Supervisor about the service you received. Important Notice: This email (including any attachments) is intended solely for the use of the individual or entity to which it is addressed, and may contain information that is confidential, proprietary, non-public 1 and/or privileged. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this email in error, please delete it from your system and advise the sender immediately. Please be advised that we are unable to bind, endorse or amend coverage via voicemail, email, or facsimile until confirmed in writing by an authorized representative of this office. We accept no liability for any damage caused by any virus transmitted by this email. It is your responsibility to check this email (including any attachments) for viruses. From: gsanchez@palmdesert.gov <gsanchez@palmdesert.gov> Sent: Monday, September 25, 2023 5:42 PM To: thileman@palmdesert.gov; PublicEntity Claims <PublicEntityClaims@carlwarren.com>; Isra.Shah@bbklaw.com Cc: cescobedo@palmdesert.gov; amejia@palmdesert.gov; astaehle@palmdesert.gov; Tim Varon <TVaron@carlwarren.com> Subject: File # 3049828 - Palm Desert - Jacob Broyles Attached for your review and appropriate action is Claim No. 903 submitted by Jacob Broyles. If you have questions or need additional information, please do not hesitate to contact me. Kind regards, City of Palm Desert Clerk's Office 2 LL' ' CARL WARREN & COMPANY Claims Management and Solutions A V3VENBROOK-Company September 26, 2023 Jacob Broyles 255 Calle Siempre Palm Desert, CA 92211 RE: Claimant Jacob Broyles Date of Loss 8/20/23 Claim Filing Date 9/22/23 Our File Number 3049828 CBV Carl Warren & Company is the claims management company for the City of Palm Desert. The above -captioned claim has been assigned to Claudia Bray for handling. Ms. Bray may be reached at 657-622-4216. When our investigation is complete, we will advise you as to whether or not we can recommend settlement. Very Truly Yours, CARL WARREN & CO. n4 t 44d M. Varo-w Timothy M. Varon Claims Supervisor cc: Member Agency: City of Palm Desert, attn:Gloria Sanchez PO Box 2411, Tustin, CA 92781 T: 657-622-4200 I F:866-254-4423 1 www.carlwarren.com CA License #2607296 Gloria Sanchez From: gsanchez@palmdesert.gov Sent: Monday, September 25, 2023 5:42 PM To: Todd Hileman; publicentityclaims@carlwarren.com; Isra Shah Cc: Chris Escobedo; Anthony Mejia; Andrea Staehle; tvaron@carlwarren.com Subject: Claim Against the City of Palm Desert - 903 - Jacob Broyles Attachments: Claim Against the City of Palm Desert For Damage(s.pdf; B43BD731-7FE3-499B-AF5E- B7F004C8B442jpeg;7F037C53-8A54-443C-B974-D1A371B94146.jpeg;E718A431- A6F1-476B-98B1-987FE6AB2F31jpeg; B504FDC0-8150-4D48-8260-93C664C8BF5Cjpeg;B1OECCA5-E170-4ECB-B048- CB0EB7558B23jpeg; 8C364B0E-9861-4CF7-A308-33F9B2351BDB.jpeg Attached for your review and appropriate action is Claim No. 903 submitted by Jacob Broyles. If you have questions or need additional information, please do not hesitate to contact me. Kind regards, City of Palm Desert Clerk's Office i Claim Against the City of Palm Desert For Damage(s) to Person(s) or Personal Property PALM DESERT CALIFORNIA Instructions: Please fill out this form completely. Failure to provide sufficient information may result in delays in claim processing. If you need an accommodation to complete or submit this form, please contact the City Clerk's Office Claims Coordinator at cityclerk@palmdesert.gov or (760) 346-0611. Important Information: 1. Claims for death, injury to person or to personal property must be fi led no later than six(6) months after the occurrence. 2. Claims for damages to real property must be fi led no later than one (1) year after theoccurrence. See California Government Code §911.2. 3. Be sure claim is against the City of Palm Desert, not another public entity. 4. Claimant is advised to consult a private attorney if legal advice is desired. No employeeof the City may give legal advice to any claimant relating to private claims. Instrucciones: Complete este formulario en su totalidad. Si no brinda informacionsufi ciente, pueden producirse demoras en el procesamiento del reclamo. Si necesita algunaacomodacion para completar o enviar este formulario, comuniquese con el Coordinador deADA a la direction de correo electronico cityclerk@palmdesert.gov o al telefono (760) 346-0611. Information importante: 1. Los reclamos por muerte, lesiones personales o danos a la propiedad debenpresentarse a mas tardar seis (6) meses despues de haberse producido el hecho. 2. Los reclamos por danos a bienes inmuebles deben presentarse a mas tardar un (1) anodespues de haberse producido el hecho. (Consulte §911.2 del Codigo de Gobierno). 3. Asegurese de dirigir su reclamo a la ciudad de Palm Springs, no a otro organismopublico. 4. Se aconseja a los reclamantes consultar con un abogado privado si asi to desean.Ningun empleado de la ciudad puede. Claimant First Name Claimant Last Name Jacob Broyles Home Address / Domicilio Street Address 255 Calle Siempre Address Line 2 City State/Province/Region Palm Desert Ca Postal/Zip Code Country 92211 United States Preferred Phone Number / Numero de telefono preferido 760-567-1601 Email / Correo electronico jacob@jbfinish.com Are you currently represented by an attorney? / zEsta actualmenterepresentado por un abogado? 0Yes Di No Date and time of damage/injury/loss - Fecha y hora deldano/lesion/perdida 08/20/2023 03:00:00 PM Did any other person experience an injury/damage/loss? - LAIguna otrapersona experimento una lesion/dano/perdida? D Yes O No Name Phone Number E-Mail Street Address Address Line 2 City Postal/Zip Code Are there any witnesses? - zHay algun testigo? Yes No Witness Name Witness E-mail Address State/Province/Region Country Witness Phone Number 123-123-1234 Location of damage/injury/loss (if known, include specific address) - Lugar donde se produjo el dano, la lesion o la perdida (si conoce el domicilio especifico, indiquelo) 255 Calle Siempre, Palm Desert, Ca 92211. Provide a general description of the damage/injury/loss as the time of this claim - Describa el dano, la lesion o la perdida al momento de este reclamo Hurricane Hillary. Drainage system failed, flooding 37 homes in Spanish Walk. Our location flooded 3 feet high. Specify how the damage/injury/loss occurred - Especifique como se produjo el dano, la lesion o la perdida See above Were paramedics/ambulance called? / zSe Ilamo a los paramedicos/ambulancia? DYes ®No Did you seek medical treatment? / zBuscaste tratamiento medico? D Yes O No What particular action/omission by the City, or its employee(s) caused the damage/injury/loss? - Que accion u omision especifica de la ciudad o sus empleados ocasionaron el dano, la lesion o la perdida? Drainage system failed followed by delayed action to turn on power and approve permits which over a month later still haven't been given. Permits that my lawyer insists aren't needed and is currently assessing the situation to file a lawsuit. This delay not only caused more mold damage but so far I have lost over a month of rent income as this is a home we rent out. Provide the name of the City employee involved in the damage/injury/loss, if known - Si to conoce, indique el nombre de los empleados de la ciudad involucrados en el dano, la lesion o la perdida Unknown Was a police report filed? / presento un informe policial? 0Yes No Any additional information that might be helpful in considering claim / Cualquier information adicional que pueda ser util al considerar el reclamo: NA DAMAGES CLAIMED - If the amount claimed exceeds $10,000, it is not required that a dollar amount be provided. However, your claim must indicate whether it would be a Limited Civil Case. A Limited Civil Case is one where the recovery sought, exclusive of attorney fees, interest, and court costs, does not exceed $25,000. An Unlimited Civil Case is one in which the recovery sought is more than $25,000. / Si el monto reclamado supera los $10.000, no es necesario indicar el importe en dolares. Sin embargo, el reclamo debe indicar si se tratarra de una Accion civil limitada. Una accion civil limitada es una accion en la que el resarcimiento pretendido no supera los $25.000, sin incluir honorarios de abogados, intereses y costas del tribunal. En una accion civil sin Irmite, el resarcimiento pretendido supera los $25.000. O Limited Civil Case (damages between $10,000 to $25,000) - Accion civil limitada (los danos ascienden a $10.000 - $25.000) O Unlimited Civil Case (damages exceed $25,000) - Accion civil sin Irmite (los danos superan los $25.000) Q Claimed totals less than $10,000 / Total reclamado menos de $10,000 Basis for Computation of amount claimed (include estimate/bills as an attachment, if possible) - Base para el calculo del monto reclamado (incluya estimaciones/facturas como anexo, si es posible) Document Uploads Picture Uploads B43BD731-7FE3-499B-AF5E-B7F004C8B442.jpeg 295.42KB 7F037C53-8A54-443C-B974-D1A371 B94146.jpeg 449.21 KB E718A431-A6F1-476B-98B1-987FE6AB2F31.jpeg 391.39KB B504FDC0-8150-4D48-8260-93C664C8BF5C.jpeg 445.64KB B1OECCA5-E170-4ECB-B048-CB0EB7558B23.jpeg 282.39KB 8C364B0E-9861-4CF7-A308-33F9B2351BDB.jpeg 378.72KB WARNING: IT IS A CRIMINAL OFFENSE TO FILE A FALSE CLAIM. (CALIFORNIA PENAL CODE 72 AND CALIFORNIA INSURANCE CODE) I hereby certify under penalty of perjury that the facts hereinabove set forth are true and correct to the best of my knowledge. / ADVERTENCIA: ES UN DELITO PENAL PRESENTAR UNA RECLAMACION FALSA. (CODIGO PENAL DE CALIFORNIA 72 Y CODIGO DE SEGUROS DE CALIFORNIA) Por la presente certifico bajo pena de perjurio que los hechos establecidos anteriormente son verdaderos y correctos a mi leal saber y entender. Signature ja66 6�cy�rt Assigned Claim Number 903 Signee Date 09/22/2023 Signature Date 09/25/2023 Clif. atotia S, .if.�./[�z Additional Information (If Necessary) Action History (UTC-08:00) Submit Submit by Anonymous User 2023-09-22 12:11:52 PM (Start) by Gloria Sanchez 2023-09-25 05:41:24 PM (User Task) • The task was assigned to Gloria Sanchez. The due date is: September 26, 2023 5:00 PM. The priority is: Urgent 9/22/2023 12:12:03 PM 1-rr-. i t� r I1 Storage Closet Height: 8' ■ 3of13 Door DESCRIPTION 174.67 SF Walls 207.67 SF Walls & Ceiling 3.67 SY Flooring 24.33 LF Ceil. Perimeter 33.01 SF Ceiling 33.01 SF Floor 21.33 LF Floor Perimeter 3' X 6' 8" Opens into Ej TRYWAY QTY RESET REMOVE REPLACE TAX O&P TOTAL WALLS 1. Mask per square foot for drywall 33.01 SF 0.00 0.31 0.20 2.08 12.51 work Masking for drywall/texture repair only. 2. Batt insulation - 4' - R13 - unlaced 48.67 SF 0.00 1.32 3.32 13.50 81.06 batt Insulation in exterior walls only. 3. 5/8' drywall - hung, taped, ready for 8533 SF 0.00 2.89 5.89 50.50 302.99 texture 4. Tape joint for new to existing 2133 LF 0.00 10.63 0.60 45.46 272.80 drywall - per LF 5. Texture drywall - machine 128.00 SF 0.00 0.80 0.60 20.60 123.60 Past the tape line to blend new work. 6. Mask the floor per square foot - 33.01 SF 0.00 0.34 0.20 2.28 13.70 plastic and tape - 4 mil Masking for paint repair only. 7. Seal more than the floor perimeter 128.00 SF 0.00 0.84 0.89 21.68 130.09 w/PVA primer - one coat To seal fresh texture. 8. Paint the walls - two coats 174.67 SF 0.00 1.39 4.87 49.54 29720 To blend new work. BASEITRIM/DOOR/1VI) DOW 9. Baseboard - 2 1/4" 2133 LF 0.00 4.52 2.98 19.88 11927 10. Paint baseboard - two coats 2133 LF 0.00 2.03 0.33 8.72 52.35 11. Regrout tile floor 33.01 SF 0.00 4.58 1.48 30.54 18321 To regrout new baseboard to flooring. 12. Interior door unit - Pre -hung 1.00 EA 0.00 386.93 23.43 82.06 492.42 255 CALLE_SIEMPRE_R 9/18/2023 Page: 2 Bucklar Construction Bucklar Construction 50700 Calle Guaymas La Quinta, CA. 92253 Cal. Lic. OB1039936 760-423-9135 DESCRIPTION COj Tr, UED - Storage Closet QTY RESET REMOVE REPLACE TAX O&P TOTAL 13. Casing - 2 1/4' 32.67 LF 0.00 3.18 4.33 21.64 129.86 Door casing on both sides. 14. Paint door/window trim & jamb - 2 2.00 EA 0.00 44.22 1.08 17.90 107.42 coats (per sidc) Both sides. 15. Detach & Reset Door knob - 1.00 EA 35.94 0.00 0.00 0.00 7.18 43.12 interior To to reuse existing knobs. CLEAN IN C 16. Grout sealer 2133 SF 0.00 1.57 0.36 6.78 40.63 17. Clean floor - tile 33.01 SF 0.00 1.02 0.10 6.76 40.53 Totals: Storage Closet Door 3 _f 1 N 1 DESCRIPTION 50.66 407.10 2,442.76 Entry Closet Height: 7' 6" 52.36 SF Walls 61.75 SF Walls & Ceiling 1.04 SY Flooring 9.50 LF Ceil. Perimeter 9.39 SF Ceiling 9.39 SF Floor 6.67 LF Floor Perimeter 2' 10" X 6' 8" Opens into EN TRYWAY2 Subroom: Entry Closet (1) Height: Sloped 48.84 SF Walls 59.51 SF Walls & Ceiling 0.79 SY Flooring 14.03 LF Ceil. Perimeter 10.66 SF Ceiling 7.08 SF Floor 8.50 LF Floor Perimeter 2' 6" X 4' 6" Opens into Ej TRY CLOSET QTY RESET REMOVE REPLACE TAX O&P TOTAL WALLS 18. Mask per square foot for drywall work Masking for drywall/texture repair only. 255_CALLE_SIEMPRE_R 16.47 SF 0.00 0.31 0.10 1.04 6.25 9/18/2023 Page: 3 47. Casing - 2 1/4" 32.67 LF 0.00 3.18 4.33 21.64 129.86 Door casing on both sides. 48. Paint door/window trim & _iamb - 2 2.00 EA 0.00 4412 1.08 17.90 107.42 coats (per side) Both sides. 49. Door knob/lockset - Reset 1.00 EA 0.00 35.94 0.00 7.18 43.12 To to reuse existing knobs. CLEAT 11 G 50. Grout sealer 34.75 SF 0.00 1.57 0.59 11.04 66.19 51. Clean floor -tile 10334 SF 0.00 1.02 0.32 21.18 127.11 Totals: Entryway 255_CALLE_SIEMPRE_R Door Door DESCRIPTIOJ Bucklar Construction 47.52 604.34 3,625.93 9/18/2023 Page: 6 Bucklar Construction 50700 Calle Guaymas La Quints, CA. 92253 Cal. Lic. #131039936 760-423-9135 Garage Height: 8' 4" 534.67 SF Walls 934.67 SF Walls & Ceiling 44.44 SY Flooring 80.00 LF Ceil. Perimeter 400.00 SF Ceiling 400.00 SF Floor 61.00 LF Floor Perimeter 3' X 6' 8" Opens into El TRYWAY2 16' X 7' Opens into Exterior QTY RESET REMOVE REPLACE TAX O&P TOTAL WALLS 52. Mask per square foot for drywall 400.00 SF 0.00 0.31 2.48 25.30 151.78 work Masking for drywall/texture repair only. 53. Batt insulation - 4" - R 13 - unfaced 168.00 SF 0.00 1.32 11.46 46.66 279.88 batt Insulation in exterior walls only. 54. 5/8" drywall - hung, taped ready 244.00 SF 0.00 2.89 16.83 144.40 866.39 for texture 55. Tape joint for new to existing 61.00 LF 0.00 10.63 1.70 130.02 780.15 drywall - per LF 56. Texture drywall - machine 366.00 SF 0.00 0.80 1.70 58.90 353.40 Past the tape line to blend new work. 57. Mask the floor per square foot - 400.00 SF 0.00 0.34 2.48 27.70 166.18 plastic and tape - 4 mil Masking for paint repair only. 58. Seal more than the floor perimeter 366.00 SF 0.00 0.84 2.55 62.00 371.99 w/PVA primer - one coat To seal fresh texture. 59. Paint the walls - two coats 534.67 SF 0.00 1.39 14.92 151.62 909.73 To blend new work. CLEAT If G 60. Clean concrete the floor 400.00 SF 0.00 0.54 0.31 4326 259.57 Totals: Garage 54.43 689.86 4,139.07 Total: Main Level 195.75 2,012.04 12,072.40 General 255_CALLE_SIEMPRE_R Bucklar Construction 9/18/2023 Page: 7 Bucklar Construction 50700 Calle Guaymas La Quints, CA. 92253 Cal. Lic. #131039936 760-423-9135 DESCRIPTIOI COI TIf UED - General QTY RESET REMOVE REPLACE TAX O&P TOTAL 61. Haul debris - per pickup truck Toad - including dump fees 62. Residential Supcn•ision / Project Management - per hour 2 hours a week for 3 week. 1.00 EA 6.00 HR 213.03 0.00 0.00 42.60 255.63 0.00 99.66 0.00 119.60 717.56 Totals: General Labor Minimums Applied 0.00 162.20 973.19 Bucklar Construction Bucklar Construction 50700 Calk Guaymas La Quanta, CA. 92253 Cal. Lic. M31039936 760-423-9135 DESCRIPTIOI COl Tll UED - General QTY RESET REMOVE REPLACE TAX O&P TOTAL 61. Haul debris - per pickup truck load - including dump fees 62. Residential Supervision / Project Management - per hour 2 hours a week for 3 week. 1.00 EA 6.00 HR 213.03 0.00 0.00 42.60 255.63 0.00 99.66 0.00 119.60 717.56 Totals: General Labor Minimums Applied DESCRIPTIOI 0.00 162.20 973.19 QTY RESET REMOVE REPLACE TAX O&P TOTAL 63. Insulation labor minimum 65. Finish hardware labor minimum 66. Floor cleaning labor minimum 1.00 EA 1.00 EA 1.00 EA 0.00 0.00 0.00 47.08 80.59 52.71 0.00 0.00 0.00 9.42 16.12 10.54 56.50 96.71 63.25 Totals: Labor Minimums Applied 0.00 36.08 216.46 Line Item Totals: 255 CALLS SIEMPRE R Grand Total Areas: 1,207.73 SF Walls 553.02 SF Floor 0.00 SF Long Wall 553.02 Floor Area 1,109.91 Exterior Wall Area 0.00 Surface Area 0.00 Total Ridge Length 255 CALLE SIEMPRE R 556.60 SF Ceiling 61.45 SY Flooring 0.00 SF Short Wall 608.30 Total Area 135.83 Exterior Perimeter of Walls 0.00 Number of Squares 0.00 Total Hip Length 195.75 2,21032 13,262.05 1,764.33 SF Walls and Ceiling 132.25 LF Floor Perimeter 194.11 LF Ceil. Perimeter 1,207.73 Interior Wall Area 0.00 Total Perimeter Length 9/18/2023 Page: 8 Bucklar Construction Bucklar Constmction 50700 Calle Guaymas La Quints, CA. 92253 Cal. Lic. 031039936 760-423-9135 Summary for Dwelling Line Item Total Material Sales Tax Subtotal Overhead 10,855.98 195.75 11,051.73 1.105.16 Profit 1,105.16 Replacement Con Value S13,262.05 l et Claim 513,262.05 Bucklar Construction Bucklar Construction 50700 Calle Guaymas La Quinta. CA. 92253 Cal. Lic. #81039936 760-423-9135 Property: 255 Calle Siempre Palm Desen, CA 92211 Contractor. Johnny Bucklar Company: Bucklar Construction Business: 50-700 Calle Guaymas La Quinta, CA 92253 Business: (760)423-9135 E-mail: bucklarconstruction@aol. com Claim 1 umber: Policy 1 umber: Type of Loss: Date of Loss: Date Received: Date Inspected: Date Entered: 9/18/2023 5:18 PM Price List: CAPPSX_AUG23 Restoration/Servi ce+Remodel Estimate: 255 CALLE SIEMPRE R Door DESCRIPTIOI Bucklar Construction Bucklar Construction 50700 Calle Guaymas La Quinn, CA. 92253 Cal. Lic. #81039936 760-423-9135 255_CALLE_SIEMPRE_R Main Level Storage Closet Height: 8' 174.67 SF Walls 207.67 SF Walls & Ceiling 3.67 SY Flooring 24.33 LF Ceil. Perimeter 33.01 SF Ceiling 33.01 SF Floor 21.33 LF Floor Perimeter 3' X 6' 8" Opens into El TRYWAY QTV RESET REMOVE REPLACE TAX O&P TOTAL WALLS 1. Mask per square foot for drywall 33.01 SF 0.00 0.31 0.20 2.08 12.51 work Masking for drywall/texture repair only. 2. Batt insulation - 4' - RI3 - unfaced 48.67 SF 0.00 1.32 3.32 13.50 81.06 batt Insulation in exterior walls only. 3. 5/8" drywall - hung, taped. ready for 85.33 SF 0.00 2.89 5.89 50.50 302.99 texture 4. Tape joint for new to existing 21.33 LF 0.00 10.63 0.60 45.46 272.80 drywall - per LF 5. Texture drywall - machine 128.00 SF 0.00 0.80 0.60 20.60 123.60 Past the tape line to blend new work. 6. Mask the floor per square foot - 33.01 SF 0.00 0.34 0.20 2.28 13.70 plastic and tape - 4 mil Masking for paint repair only. 7. Seal more than the floor perimeter 128.00 SF 0.00 0.84 0.89 21.68 130.09 w'PVA primer - one coat Bucklar Construction Bucklar Construction 50700 Calle Guaymas La Quinn, CA. 92253 Cal. Lic. #B1039936 760.423-9135 Entryway Height: 8' 136.00 SF Walls 183.15 SF Walls & Ceiling 5.24 SY Flooring 27.83 LF Ceil. Perimeter ,•r 47.15 SF Ceiling 47.15 SF Floor 16.00 LF Floor Perimeter Door 3' X 6' 8" Opens into STORAGE_CLOS Door 3' X 6' 8" Opens into Exterior Subroom: Entryway (1) Height: 7' 6" 36.11 SF Walls 47.72 SF Walls & Ceiling 1.29 SY Flooring 13.67 LF Ceil. Perimeter Door 2'10"X6'8" Door 3' X 6' 8" Missing Wall - Goes to Floor 3' 8" X 8' i f krr Q r Subroom: Entryway (2) h s. 1-rur-� Miss ng Wall 2' 9" X 17' Opens into Exterior Miss ng Wall - Goes to neither Floor/Ceiling 1' 2" X 14' Opens into Exterior Miss ng Wall - Goes to neither Floor/Ceiling 3' 8" X 12' Opens into Exterior Miss ng Wall - Goes to Floor 4' 2" X 8' Opens into El TRYWAY2 Missing Wall - Goes to Floor 6' X 17' Opens into El TRYWAY 225.08 SF Walls 269.86 SF Walls & Ceiling 4.98 SY Flooring 24.75 LF Ceil. Perimeter 11.61 SF Ceiling 11.61 SF Floor 4.17 LF Floor Perimeter Opens into El TRY_CLOSET Opens into GARAGE Opens into El TRYWAYI Height: 17' 44.78 SF Ceiling 44.78 SF Floor 14.58 LF Floor Perimeter DESCRIPTIOI QTY RESET REMOVE REPLACE TAX O&P TOTAL WALLS 35. Mask per square foot for drywall work Masking for drywall'texture repair only. 255_CALLE_SIEMPRE_R 10334 SF 0.00 0.31 0.64 6.54 3928 Bucklar Construction 9/182023 Page: 5 Bucklar Construction 50700 Calle Guaymas La Quinn, CA. 92253 Cal. Lic. #131039936 760-423-9135 DESCRIPTIOI CO! TII UED - Entryway QTY RESET REMOVE REPLACE TAX O&P TOTAL 36. Ban insulation - 4" - R 13 - unfaced 84.67 SF ban 0.00 1.32 5.77 23.52 141.05 Insulation in exterior walls only. 37. 5/8" drywall - hung. taped ready 139.00 SF 0.00 2.89 9.59 8226 493.56 for texture 38. Tape joint for new to existing 34.75 LF 0.00 10.63 0.97 74.08 444.44 drywall • per LF 39. Texture drywall - machine 20830 SF 0.00 0.80 0.97 33.56 201.33 Past the tape line to blend new work. 40. Mask the floor per square foot - 10334 SF 0.00 0.34 0.64 7.16 43.00 plastic and tape - 4 mil Masking for paint repair only. 41. Seal more than the floor perimeter 20830 SF 0.00 0.84 1.45 3532 211.91 w/PVA primer - one coat To seal fresh texture. 42. Paint the walls - two coats 397.19 SF 0.00 1.39 11.08 112.64 675.81 To blend new work. 43. Touch up stain & finish on wood 1.00 EA 0.00 39.62 0.05 7.94 47.61 beam BASE/TRIM/DOOR/WI! DOW 44. Baseboard - 2 1/4" 34.75 LF 0.00 4.52 4.85 32.40 194.32 45. Paint baseboard - two coats 34.75 LF 0.00 2.03 0.54 1420 8528 46. Regrout tile floor 10334 SF 0.00 4.58 4.65 95.78 574.64 To regrout new baseboard to flooring. 47. Casing • 2 1/4" 32.67 LF 0.00 3.18 4.33 21.64 129.86 Door casing on both sides. 48. Paint door/window trim & jamb - 2 2.00 EA 0.00 4422 1.08 17.90 107.42 coats (per side) Both sides. AQ M..r IrmMnrlecnt Rres1 1M FA AS QA 41M 71R AI t7 DESCRIPTIOI 2' 10" X 6' 8" Opens into El TRYWAY2 Sabroom: Entry Closet (1) Height: Sloped 48.84 SF Walls 59.51 SF Walls & Ceiling 0.79 SY Flooring 14.03 LF Ceil. Perimeter 10.66 SF Ceiling 7.08 SF Floor 8.50 LF Floor Perimeter 2' 6" X 4' 6" Opens into Ei TRY CLOSET QTY RESET REMOVE REPLACE TAX O&P TOTAL WALLS 18. Mask per square foot for drywall work Masking for drywall/texture repair only. 255 CALLE SIEMPRE_R 16.47 SF 0.00 0.31 0.10 1.04 6.25 9/18/2023 Page: 3 Buckler Construction Buckler Construction 50700 Calle Guaymas La Quinta, CA. 92233 Cal. Lic. #B1039936 760-423-9135 DESCRIPTIOJ COj Tll UED - Entry Closet QTY RESET REMOVE REPLACE TAX O&P TOTAL 19. Ban insulation - 4" - R 13 - unfaccd 33.33 SF 0.00 1.32 2.27 9.26 55.53 bast Insulation in exterior walls only. 20. 5/8" drywall - hung. taped. ready 60.67 SF 0.00 2.89 4.19 35.90 215.43 for tcxturc 21. Tape joint for new to existing 15.17 LF 0.00 10.63 0.42 32.34 194.02 drywall - per LF 22. Texture drywall - machine 91.00 SF 0.00 0.80 0.42 14.64 87.86 Past the tape line to blend new work. 23. Mask the floor per square foot - 16.47 SF 0.00 0.34 0.10 1.14 6.84 plastic and tape - 4 mil Masking for paint repair only. 24. Seal more than the floor perimeter 91.00 SF 0.00 0.84 0.63 15.40 92.47 w/PVA primer - one coat To seal fresh texture. 25. Paint the walls - two coats 101.20 SF 0.00 1.39 2.82 28.70 172.19 To blend new work. BASE/rRIM/DOOR/W1I DOW 26. Baseboard - 2 I/4" 15.17 LF 0.00 4.52 2.12 14.14 84.83 27. Paint baseboard - two coats 15.17 LF 0.00 2.03 0.23 6.20 37.23 28. Rcgrout tile floor 16.47 SF 0.00 4.58 0.74 15.22 91.39 To rcgrout new baseboard to flooring. 29. Interior door unit - Pre -hung 1.00 EA 0.00 386.93 23.43 82.06 492.42 30. Casing - 2 I/4" 32.33 LF 0.00 3.18 4.28 21.42 128.51 Door casing on both sides. 31. Paint door/window trim & jamb - 2 2.00 EA 0.00 44.22 1.08 17.90 107.42 coats (per side) Both sides. 32. Detach & Reset Door knob - 1.00 EA 35.94 0.00 0.00 0.00 7.18 43.12 interior To to reuse existing knobs. CLEAT 11 G 33. Grout scaler 15.17 SF 0.00 1.57 0.26 4.82 28.90 34. Clean floor - tile 16.47 SF 0.00 1.02 0.05 3.38 20.23 Totals: Entry Closet 255 CALLE SIEMPRE R 43.14 310.74 1,864.64 9/18/2023 Page: 4 Bucklar Construction Buckler Construction 50700 Calle Guaymas La Quince, CA. 92253 Cal. Lic. #131039936 760-423-9135 Entryway Height: 8' 136.00 SF Walls 183.15 SF Walls & Ceiling 5.24 SY Flooring 27.83 LF Ceil. Perimeter 47.15 SF Ceiling 47.15 SF Floor 16.00 LF Floor Perimeter rr Door rr 3' X 6' 8" Opens into STORAGE_CLOS