Hunters Point Homeowners Association

DECLARATION
of
Conditions, Covenants, Restrictions and Easements
for
HUNTERS POINT

The Peregrine Joint Venture, a Colorado general partnership (referred to as "Declarant" in this Declaration), is the sole owner of property described as follows:

All of Hunters Point Subdivision Filing No.1 according to the plat thereof recorded in El Paso County, Colorado. This land is called "Hunters Point" and individual lots designated by the recorded plat are called "Lots."

Declarant desires to place protective covenants, conditions, restrictions, reservations, liens and charges upon Hunters Point to protect Hunters Point's quality residential living environment and also to protect its desirability, attractiveness and value. Consequently, Hunters Point is hereby subjected to the following easements, covenants, restrictions and conditions (collectively referred to as "Covenants"), all of which shall run with Hunters Point and shall be binding upon all parties having or acquiring any rights, title or interest in it or any part thereof, and shall inure to the benefit of each owner thereof.

ARTICLE I

COVENANTS TO PRESERVE THE RESIDENTIAL

CHARACTER OF HUNTERS POINT

Section 101. Property Uses. All Lots and building sites in Hunters Point shall be used exclusively for private residential purposes. No dwelling erected or maintained within Hunters Point shall be used or occupied for any purpose other than for a single family dwelling. No business, profession or other activity conducted for gain shall be carried on or within any Lot or building site.

Section 102. Structures. No structure shall be erected within Hunters Point except single family dwellings and those accessory buildings and accessory structures which have been approved by the Architectural Committee. No structure other than a dwelling, no accessory building, trailer, tent or other similar or dissimilar temporary quarters may be used for living purposes. No other structure may be placed on any building site before completion of the dwelling upon such building site except with the permission of the Architectural Committee.

Section 103. Construction Type. All construction shall be new. No building previously used at another location nor any building or structure originally constructed as a mobile dwelling or structure may be moved onto a Lot, except as expressly hereinafter provided for temporary buildings.

Section 104. Storage. No building materials shall be stored on any Lot except temporarily during continuous construction of a building or its alteration or improvement.

Section 105. Substantial Completion. A structure shall not be occupied in the course of original construction until substantially completed. All work of construction shall be prosecuted diligently and continuously from the time of commencement until fully completed.

Section 106. Construction Completion. The exterior of all buildings or other structures must be completed within one year after the commencement of construction except where such completion is impossible or would result in great hardship due to strikes, fires, national emergency or natural calamities. If not so completed, or if construction shall cease for a period of sixty days without permission of the Architectural Committee, the Architectural Committee will give the owner thereof Due Notice of such fact, and if construction on such structure is not diligently commenced within thirty days after such notice, the unfinished structure (or unfinished portion thereof) shall be deemed a nuisance and shall be removed forthwith by and at the cost of the Owner.

Section 107. Construction of Sales Offices. Temporary buildings for construction or administration purposes or for sales models or offices may be erected or maintained only by Declarant or with the permission of the Architectural Committee. Model homes may be used and exhibited only by Declarant or with the permission of the Architectural Committee. Temporary buildings permitted for construction or administration purposes or for sales offices shall be promptly removed when they cease to be used for these purposes.

Section 108. Drilling Structures. No derrick or other structure designed for use in or used for boring or drilling for water, oil or natural gas shall be permitted upon or above the surface of any Lot, nor shall any water, oil, natural gas, petroleum, asphaltum or other hydrocarbon substances be produced from any well located upon, in or under any Lot.

Section 109. Easements. There are hereby reserved to Declarant, its successors and assigns, perpetual, alienable, divisible and releasable easements and the right from time to time to grant such easements to others over, under, in and across each of the seven foot strips along and adjoining each rear lot line of each Lot, and each of the five foot strips along and adjoining each side lot line of each Lot for use of all or part of such areas for lines for transmission of electric current or impulses or electronic signals, for heat and fuel lines, for water lines, for utility lines, for drainage and drainage improvements and for other similar or dissimilar facilities and purposes, and for anyone or more of such purposes. Easements in addition to those above described may have been or may hereafter be granted by duly recorded conveyance.

Section 110. Underground Utilities. All utilities except lighting standards and customary service devices for access, control or use of utilities shall be installed underground.

Section 111. Access Restriction.

(a) Restricted Lots. Access to and from certain Lots onto some of the streets will be restricted. The Lots and streets subject to this restriction (called "Restricted Lots") will be shown on the recorded final plats for those Lots.

(b) Terms of Restriction. All persons or entities having any interest in any of the Restricted Lots are required to and shall arrange and maintain any drives, dwellings or other structures so that ingress and egress to and from their Lots is in compliance with the restrictions shown on the recorded Plat.

(c) Common Driveways. Some Lots may share common driveways with an adjoining Lot. Any such driveways will be shown on the final Plat of the Lots involved. The Lots directly served by the common driveway will have an easement for use of the designated driveway. If one Lot installs the driveway before the other Lot is ready, the owner of the second Lot will pay to the owner of the first Lot its fair share of the cost of the driveway (as determined by the Architectural Committee), together with interest at the rate of twelve percent per annum, or such other rate as may be established by the Architectural Committee. This payment will be in cash at the time a building permit for the second Lot is issued. The Architectural Committee may approve alternative access to Lots with common driveways if it determines such alternative access is appropriate. Any such determination will be in writing and must be properly recorded in the real estate records of EI Paso County, Colorado by the Lot Owner prior to commencing construction activity on the Lot involved.

ARTICLE II

DENSITY AND QUALITY STANDARDS

Section 201. Subdivision. No more than one dwelling shall be erected or maintained within any Lot or the combination of two or more Lots or portions thereof unless approved by the Architectural Committee.

Section 202. Antennas. No aerial, satellite dish, antenna or other device for reception or transmission of radio or television or other electronic signals shall be maintained on the roof of any building nor shall they be maintained at any other exterior location so as to be visible from neighboring property or adjacent streets.

Section 203. Owner Maintenance. Each Owner shall maintain the exterior of the dwelling, any accessory building and all other structures, lawns and landscaping, walks and driveways, in good condition and shall cause them to be repaired as the effects of damage or deterioration become apparent. Exterior building surfaces and trim shall be refinished and maintained periodically and before the surfacing becomes weather beaten or worn off.

Section 204. Rebuilding or Restoration. Any dwelling or building which may be destroyed in whole or in part by fire, windstorm or from any other cause or act of God must be rebuilt or all debris must be removed and the Lot restored to a sightly condition, such rebuilding or restoration to be completed with reasonable promptness and in any event within six months from the time the damage occurred.

Section 205. Design Standards. The Association's Board of Directors may, from time to time, adopt Design Standards further defining the architectural and development criteria for Hunters Point, the approval processes, and other related matters.

All Improvements in Hunters Point must also comply with these Design Standards.

ARTICLE III

LIVING ENVIRONMENT STANDARDS

Section 301. Building and Grounds Conditions. Each Owner shall prevent the development of any unclean, unsightly or unkempt conditions of buildings or grounds on his Lot which tends to decrease the beauty of the neighborhood as a whole or in the specific area. No building material shall be stored on any Lot, except temporarily during continuous construction of a building, unless enclosed out of view in a service yard or within a building.

Section 302. Garage Doors. Garage doors shall be kept closed except when being used to permit ingress or egress to or from the garage.

Section 303. Maintenance Equipment. All maintenance equipment shall be stored in an enclosed structure or otherwise adequately screened so as not to be visible from neighboring property or adjoining streets.

Section 304. Clotheslines. No outdoor clotheslines will be permitted.

Section 305. Refuse. No ashes, trash, rubbish, garbage, grass or shrub clippings, scrap material or other refuse, or receptacles or containers therefore, shall be stored, accumulated or deposited outside or so as to be visible from any neighboring property or street, except during refuse collections.

Section 306. Nuisances. No noxious or offensive activity shall be carried on upon any Lot nor anything done thereon tending to cause embarrassment, discomfort, annoyance or nuisance to the neighborhood. No offensive or hazardous activities may be carried on any Lot or in any living unit. No annoying lights, sounds or odors shall be permitted to emanate from any living units.

Section 307. Sound Devices. No exterior speakers, horns, whistles, bells or other sound devices except security devices used exclusively for security purposes shall be located, used or placed on any structure or within any building site.

Section 308. Landscaping. Within nine months after substantial completion of a dwelling or within any extension of that period granted by the Architectural Committee, all landscaping shown in any approved landscaping plans must be properly installed.

Section 309. Weeds. All yards and open spaces and the entire area of every Lot on which no building has been constructed, shall be kept free from plants or weeds infected with noxious insects or plant diseases and from weeds which, in the reasonable opinion of the Architectural Committee, are likely to cause the spread of infection or weeds to neighboring property and free from brush or other growth or trash which, in the reasonable opinion of the Architectural Committee, causes undue danger of fire.

Section 310. Mowing and Pruning. In order to effect insect, weed and fire control and to prevent and remove nuisances, the Owner of any Lot upon which a building has not been constructed shall mow, cut, prune, clear and remove from the premises diseased trees, unsightly brush, weeds and other unsightly growth and shall remove any trash which may collect or accumulate on the Lot. The Association has the right (but not the duty) to enter any Lot and perform this work after Due Notice to the Owner, in which case the reasonable costs incurred by the Association in performing such work will be an additional assessment against the Lot involved.

Section 311. Transmitters. No electronic or radio transmitter of any kind other than garage door openers or cordless telephones shall be operated in or on any structure or within any building site.

Section 312. Animals. Domesticated birds or fish and other small domestic animals permanently confined indoors will be allowed. No other animals, except an aggregate of not more than two domesticated dogs or cats (which must be fenced or restrained at all times within the Lot), will be permitted within Hunters Point. No animal of any kind shall be permitted which in the opinion of the Architectural Committee makes an unreasonable amount of noise or odor or is a nuisance. No animals shall be kept, bred or maintained within Hunters Point for any commercial purposes.

Section 313. Parking. No overnight parking will be allowed on any public or private streets within Hunters Point. In addition, no parking of any kind will be permitted in the designated "no parking" areas shown on the Plat.

Section 314. Trailers. Campers. etc. No boat, trailer, camper (on or off supporting vehicles), tractor, commercial vehicle, mobile home, motor home, motorcycle, any towed trailer unit or truck, excepting only pickups solely for the private use of the residents of a dwelling, shall be parked within any Lot or building site except in a completely enclosed structure, or fully screened in a manner approved by the Architectural Committee so as not to be visible at ground level from any neighboring property or street.

Section 315. Junk Vehicles. No stripped down, partially wrecked or junk motor vehicle or part thereof, shall be permitted to be parked on any street or on any Lot in such manner as to be visible from any neighboring property or street.

Section 316. Vehicle Repairs. No maintenance, servicing, repair, dismantling or repainting of any type of vehicle, boat, machine or device may be carried on except within a completely enclosed structure which screens the sight and sound of the activity from the street and from adjoining property.

Section 317. Signs. The only signs permitted on any Lot or structure shall be:

(a) One sign of customary size for offering of the signed property for sale or for rent;

(b) One sign of customary size for identification of the occupant and address of any dwelling;

(c) Multiple signs for sale, administration and directional purposes installed by, or with the permission of Declarant during development;

(d) Signs as may be necessary to advise of rules and regulations or to caution or warn of danger; and

(e) Such signs as may be required by law.

Except for permitted signs, there shall not be used or displayed on any Lot or structure any signs or any banners, streamers, flags, lights or other devices calculated to attract attention in aid of sale or rental. All permitted signs must be professionally painted, lettered and constructed. If a permitted sign is not in compliance with the Design Standards, the Architectural Committee may, upon Due Notice, require it to be modified or removed.

Section 318. Construction Activities. During construction, all construction debris will be stored in a manner which will prevent its being blown away or otherwise dislodged by storms or high winds and will be removed from the construction site at least once per week. If these requirements are not complied with during construction, the Association or Declarant may notify the Owner or contractor involved, and, if the deficiencies have not been remedied within the next two days, the Association or Declarant may then remove the trash and debris. The Owner and contractor involved will have no claim for damages or otherwise on account of such removal, and all costs incurred by the Association or Declarant will be an assessment against the Lot involved and will be paid by the Lot Owner within 30 days after receipt of a bill from the Association or Declarant. If this assessment is not timely paid, it will become a lien against the Lot involved as provided in section 603 below.

ARTICLE IV

ARCHITECTURAL CONTROL

Section 401. Building Approval. No Improvement shall be permitted, except in accordance with plans, specifications and other information submitted to the Architectural Committee and approved by the Architectural Committee no more than one year before start of the construction, alteration or installation. Matters which require the approval of the Architectural Committee include but are not limited to: the exterior appearance, material, color, height and location of each structure, drive, walk, fence, grading of site, landscaping and plant materials. In granting or withholding approval, the Architectural Committee shall consider among other things: the requirement of the Design Standards, the adequacy of the materials for their intended use, the harmonization of the external appearance with the surroundings, the proper relation of the structure to the environment and to surrounding uses, the degree of disturbance to the natural terrain and vegetation, and the degree, if any, to which the proposed structure or covering will cause intrusions of sound, light or other effect on neighboring sites beyond those reasonably to be expected in a quality urban residential area from considerate neighbors.

Section 402. Charges. The Architectural Committee may charge reasonable fees to cover expenses incurred in review of plans, samples and materials submitted pursuant to this Declaration. The Architectural Committee shall be entitled to retain one copy of all approved plans as part of its files and records.

Section 403. Variances. The Architectural Committee shall have the authority to grant for a Lot or building site a variance from the terms of one or more of sections 106, 110 and 204, or the Design Standards, subject to terms and conditions which may be fixed by the Architectural Committee and will not be contrary to the interests of the Owners and residents of Hunters Point where, owing to exceptional and extraordinary circumstances, literal enforcement of those sections will result in unnecessary hardship. Following an application for a variance:

(a) The Architectural Committee shall, within thirty days after the request for the variance was delivered, determine whether to grant or deny the variance. If the Architectural Committee fails to act on the request for a variance within this thirty days, the variance will be deemed granted.

(b) A variance granted hereunder shall run with the Lot or building site for which granted.

(i) the variance will not authorize the operation of a use other than private, single family residential use;

(ii) owing to the exceptional and extraordinary circumstances, literal enforcement of the section above enumerated will result in unnecessary hardship;

(iii) the variance will not substantially or permanently injure the use of other property in Hunters Point;

(iv) the variance will not alter the essential character of Hunters Point;

(v) the variance will not weaken the general purposes of these Covenants;

(vi) the variance will be in harmony with the spirit and purpose of these Covenants;

(vii) the circumstances leading the applicant to seek a variance are unique to the Lot or building site or its Owner and are not applicable generally to Lots in Hunters Point or their Owners.

(d) If the Architectural Committee denies the request for a variance, the applicant may request the Board of Directors review the decision.

(e) If a variance is denied, another application for substantially the same variance for the Lot involved may not be made for a period of one year after submittal of the original request.

ARTICLE V

ARCHITECTURAL COMMITTEE

Section 501. Composition of the Architectural Committee. The Architectural Committee shall consist of between three and five individuals. Declarant reserves the right, until all Lots within Hunters Point have been sold by Declarant, to appoint a majority of the members of the Architectural Committee. Thereafter, the Board of Directors of the Association may change the membership of the Architectural Committee, so long as the members of the Architectural Committee so appointed are all Owners of Lots within Hunters Point. Whenever a member shall be deceased or unwilling or unqualified to act, the Board of Directors shall appoint Owners of Lots within Hunters Point as members of the Architectural Committee so as to fill the existing vacancies. Any appointment, removal or replacement of members of the Architectural Committee shall be by written instrument signed and acknowledged by the person or persons authorized to make appointment, removal or replacement.

Section 502. Delivery of Items and Approval Process. Any item required or permitted to be delivered to the Architectural Committee shall be deemed properly delivered when actually received by the Architectural Committee at the registered office of the Association. All action required or permitted to be taken by the Architectural Committee shall be in writing and any such written statement shall establish the action of the Architectural Committee and shall protect any person relying on the statement. If the Architectural Committee does not execute and acknowledge such a statement within 30 days after delivery of all the required materials to the members of the Architectural Committee, the materials so delivered shall be deemed approved for the purpose of these Covenants.

Section 503. Liability. Members of the Architectural Committee shall not be liable to any party whatsoever for any act or omission unless the act or omission is in bad faith and amounts to fraud.

ARTICLE VI

THE ASSOCIATION AND COMMON AREAS

Section 601. Ownership and Use of Facilities. It is contemplated the Association will own, operate and maintain open space areas within Hunters Point, trails, park areas, detention and natural drainage areas, certain private roads, and a neighborhood recreational facility, all of which will be part of the Common Area. All Owners will have a nonexclusive right and easement to use the Common Area, which easement will be appurtenant to and will pass with the title to each Lot, and may be delegated by the Owner to members of his family, his tenants or contract purchasers who reside on his Lot. However, this easement and the right to use the Common Area will be subject to such reasonable rules and regulations as the Association may adopt. For the recreational facilities, these rules may also impose reasonable fees for usage to help cover actual operating costs.

Section 602. The Association.

(a) Membership. Every Owner of a Lot which is subject to assessment shall be a Member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment. If additional Lots are added to the Association, membership shall automatically be expanded thereby.

(b) Classes of Members. The Association shall have two classes of voting membership:

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

Class B. The Class B Member shall be Declarant and shall be entitled to three votes for each Lot owned. The Class B membership shall cease and be converted to Class A membership on the happening of either of the following events, whichever occurs earlier:

(i) when the total votes outstanding in the Class A membership equal the total votes outstanding in the Class B membership, provided, however, if additional Lots are added to the Association, Declarant's Class B membership shall revive upon each such addition and continue until the total votes outstanding in the Class A membership for the entire project, including the annexed Properties, equal the total votes outstanding in the Class B membership for the entire project, including the added Lots; or

(ii) on December 31, 1993.

(c) Nonliability of Association and Others. Declarant and the Association and its officers, directors and Members, including without limitation, members of the Architectural Committee, and agents of each of them, shall not be liable in damages or otherwise to any person whatsoever for any act or omission incident to their office, unless the act or omission is in bad faith or amounts to fraud.

(d) Basic Powers. The Association will have the powers and duties set forth in its Articles of Incorporation and Bylaws.

(e) Additional Powers. In addition to the powers contained in the Association's Articles and Bylaws, the Association shall have the right to borrow money for the purpose of improving the Common Areas and, with the written consent of two-thirds of all Owners and one hundred percent of all First Mortgages, to mortgage all or portions of the Common Area as security for any such loan. The Association will also have the right to dedicate or transfer all or portions of the Common Area to any public agency, authority, or utility for such purposes, and subject to such conditions as the Association may determine provided that:

(i) the dedication has prior written approval of two-thirds of the Owners and one hundred percent of the holders of First Mortgages on any Lots;

(ii) at least thirty days' prior written notice of the proposed dedication or transfer has been given to all Owners; and

(iii) the dedication is approved and accepted by the City of Colorado Springs, or such other governmental or quasi-governmental entity as may have jurisdiction.

The granting of easements for public purposes consistent with the intended use of Common Area will not be deemed a transfer within the meaning of this subsection (e).

Section 603. Covenant for Assessments.

(a) Creation of the Lien and Personal Obligation of Assessments. Declarant, for each Lot owned within Hunters Point, hereby covenants, and each Owner of any Lot by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association annual assessments or charges; such assessments to be established and collected as hereinafter provided. The annual assessments, together with interest, costs and reasonable attorneys' fees, shall be a charge on the land and shall be a continuing lien upon the Lot against which each such assessment is made. The Board of Directors or the managing agent of the Association may prepare a written notice setting forth the amount of such unpaid indebtedness, the name of the Owner of the Lot and a description of the Lot. Such a notice shall be signed by one of the Board of Directors or by the managing agent and may be recorded in the office of the Clerk and Recorder of the County of EI Paso, Colorado. The lien for each unpaid assessment attaches to the Lot at the beginning of each assessment period and shall continue to be a lien against the Lot until paid. The costs and expenses for filing any notice of lien shall be added to the assessment for which it is filed and collected as part and parcel thereof. Each assessment, together with interest, costs and reasonable attorneys' fees, shall, in addition to being a lien on the Lot involved, also be the personal obligation of the Owner of such Lot at the time when the assessment fell due. Assignees of such Owner shall not be personally liable for such assessment by virtue of their acquisition of title, but except in the case of a First Mortgagee or a purchaser at a foreclosure sale, the lien for unpaid assessments shall continue to encumber the Lot until paid.

(b) Purpose of Assessments. The assessment levied by the AS50ciation shall be used exclusively to operate and maintain the Common Areas, construct facilities on them for the benefit of the Owners, and otherwise promote the recreation, health, safety and welfare of the residents of Hunters Point, and pay for all expenses or charges reasonably determined by the Association's Board of Directors to be necessary or desirable in carrying out these purposes. The Association may also levy assessments for any other purposes provided at least two-thirds of each class of Members consents to such additional assessments.

(i) Basic. Until January I of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual Basic Assessment shall be $30.00 per month per Lot.

(ii) Supplemental. All Lots served by private roads will be subject to an additional assessment to cover the cost of maintaining Hunters Point's private roads. Declarant may require at the closing of the initial purchase by an Owner of a Lot served by a private road a one-time capital contribution to the Association for purposes of establishing a reserve for long term maintenance expenses on these private roads. Until January I of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual Supplemental Assessment shall be $20.00 per Lot per month.

From and after January I of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment may be increased effective January I of each year without a vote of the membership by the greater of fifteen percent per annum or the rise, if any, of the Consumer Price Index for Denver, Colorado (All Urban Consumers), as published by the Department of Labor, Washington, D. C. for the preceding year.

From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment may be increased above that established by the above formulas by a vote of the Members for the next succeeding, year and at the end of each such period of one year, for each succeeding period of one year, provided that any such change shall have the assent of two-thirds of the votes of each class of Members who are voting in person or by proxy, at a meeting duly called for this purpose, written notice of which shall be sent to all Members not less than thirty days nor more than sixty days in advance of the meeting setting forth the purpose of the meeting.

(d) Special and Emergency Assessments. In addition to the annual assessments authorized above, the Association may, in any assessment year, levy additional special assessments applicable to that year only for the purpose of defraying, in whole or in part, any additional or unanticipated expenditures provided that any such assessment shall have the assent of two-thirds of the votes of each class of Members who are voting in person or by proxy at a meeting duly called for this purpose. However, because of their importance for the health and safety of the Owners, any special assessments for required repair of drainage facilities and structures owned by the Association will be mandatory and not subject to this subparagraph (d).

(e) Notice and Quorum for any Action Authorized Under Sections 603(c) and 603(d). Written notice of any meeting called for the purpose of taking any action authorized under sections 603(c) and (d) shall be sent to all Members not less than thirty days nor more than sixty days in advance of the meeting. At the first such meeting called, the presence of Members or of proxies entitled to cast fifty percent of all the votes of each class of membership shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be fifteen percent of all the votes of each class of membership. No such subsequent meeting shall be held more than sixty days following the preceding meeting.

(f) Uniform Rate of Assessment. Both annual and special assessments must be fixed at a uniform rate for all Lots (except that Lots served by private roads will also be subject to the Supplemental Assessment, which will be uniform for all such Lots). Assessments may be collected on a monthly basis, except that:

(i) Declarant shall not be required to pay assessments on Lots owned by it until a final inspection for Improvements constructed on the Lot has occurred, or the Lot has been conveyed by Declarant to an Owner; and

(ii) the Board of Directors may reasonably determine that, because of special or unequal costs or benefits incurred or caused by actions or neglect of specific Owners, another basis is more equitable for certain special or emergency assessments. If, while Class B membership exists, assessed fees collected for the Association fail to adequately meet Association expenses, then Declarant shall contribute sufficient capital to cover such deficit, up to the amount which Declarant would have paid if all Lots owned by it were fully subject to assessment. Any amendment to this subsection (if) must have the prior written approval of the holders of all First Mortgages.

(g) Date of Commencement of Annual Assessments; Due Dates. The annual assessments provided for herein shall commence as to all Lots subject to such assessments under subsection (if) above on the first day of the month following recording of the Plat establishing the Lots involved. The first annual assessment shall be adjusted according to the number of months remaining in the calendar year. The Board of Directors shall fix the amount of the annual assessment against each Lot at least thirty days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every Owner subject thereto. The due dates shall be established by the Board of Directors. The Association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid. A properly executed certificate of the Association as to the status of assessments on a Lot is binding upon the Association as of the date of its issuance.

(h) Effect of Nonpayment of Assessments; Remedies of the Association. Any assessment not paid within thirty days after the due date shall bear interest from the due date at the rate of eighteen percent per annum. The Association may bring an action at law against the Owner personally obligated to pay the same, or foreclose the lien against the Lot involved. No Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the Common Area or abandonment of his Lot.

(i) Subordination of the Lien to Mortgages. The lien of the assessments provided for herein shall be subordinate to the lien of any purchase money loan evidenced by a recorded First Mortgage or recorded first deed of trust, and to any executory land sales contract wherein the Administrator of Veterans Affairs (Veterans Administration) is seller, whether such contract is owned by the Veterans Administration or its assigns, and whether recorded or not. Sale or transfer of any Lot shall not affect the assessment lien. However, the sale or transfer of any Lot pursuant to foreclosure of any First Mortgage, or any proceeding in lieu thereof, or the cancellation or foreclosure of any executory land sales contract wherein the Administrator of Veterans Affairs (Veterans Administration) is seller, whether such contract is owned by the Veterans Administration or its assigns, and whether recorded or not, 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 Lot from liability for any assessments thereafter becoming due or from the lien thereof.

(j) Working Capital. If required by regulations of the Veteran's Administration, the Federal Housing Authority, Federal National Mortgage Association, or other similar entity as a condition to purchasing or insuring any First Mortgage, or if determined necessary by the Association, the Association may require the first Owner of any Lot who purchases that Lot from Declarant to pay to the Association an amount equal to two times the amount of the estimated monthly assessment, which sum shall be held by the Association as and for working capital. Such sum shall not be refundable to such Owner, but if the Association decides that such sums are not required for working capital, shall be placed in the general revenues. Furthermore, such sums shall not relieve an Owner from making the regular payment of assessments as the same become due.

(k) Notice to Mortgagee of Default. Upon written request, a First Mortgagee shall be entitled to written notification from the Association of any default in the performance by the Owner of any obligation under this Declaration and/or the Bylaws of the Association, which is not cured within sixty days.

(l) Payment of Taxes or Insurance by Mortgagees. First Mortgagees of Lots shall have the right, jointly or singularly, to pay taxes or other charges or assessments which are in default and which may become a lien against the Common Area and may pay overdue premiums on hazard insurance policies or secure new hazard insurance coverage on the lapse of a policy for the Common Area, and any First Mortgagees making any such payment shall be owed immediate reimbursement therefore from the Association.

(m) Exempt Property. The following Property subject to this Declaration shall be exempt from the assessments created herein:

(i) all Property dedicated to and accepted by local public authority; and

(ii) the Common Area.

(n) Management Agreements.

(i) The Board of Directors of the Association shall have the right to enter into such management agreements as they determine it is in the best interest of the Association and Owners. Each Owner of a Lot shall be bound by the terms and conditions of all such management agreements entered into by the Association. A copy of all such agreements shall be available to each Owner. Any and all management agreements entered into by the Association shall provide that the management agreement may be canceled by an affirmative vote of sixty percent of the votes of each class of the Members of the Association. Any and all management agreements shall be made with a responsible party or parties having experience adequate for management of the duties of the Association. Any management agreement providing for the services of Declarant or the builder of the project may not exceed three years and must provide that it can be terminated by the Association without cause and without payment of a termination fee upon ninety days' written notice.

(ii) Each and every management agreement made between the Association and a manager, or managing agent during the period when Declarant or other developer controls the Association may be terminated no later than thirty days after the termination of control by Declarant or other developer of the Association. In the event the contract is not so terminated, it shall become binding upon the Association for the duration of its term. The provisions of this section (ii) shall be contained, verbatim, in each and every of such management agreement.

(o) Homestead Exemption. The lien of the Association shall be superior to any homestead exemption as is now or hereafter provided by Colorado or federal law. The acceptance of a deed subject to these Covenants shall constitute a waiver of the homestead exemption as against the Association's lien.

Section 604. Operation and Maintenance.

(a) Association Activities. The Association will operate and maintain all recreation facilities, open space, trails, drainage areas, private roads and other portions of the Common Area in first-class condition so as to provide attractive amenities to residents of Hunters Point and. present a neat, tidy and attractive appearance. All water mains designated as private within Hunters Point will be maintained by the Association. This includes all valves and hydrants with the private mains.

(b) Willful or Negligent Damage. If the need for maintenance or repair described in section (a) of this Article is caused through the willful or negligent acts or omissions of any Owner, his family, guests or invitees, the cost of such maintenance shall be added to and become part of the assessment to which the Lot of such Owner is subject. No Owner shall, in whole or in part, change any Maintenance Area adjacent to his Lot by the addition or removal of any items thereon without the prior written approval of the Architectural Committee.

(c) Access at Reasonable Hours. For the purpose of performing the maintenance referred to in section (a) of this Article, the Board of Directors of the Association, through its duly authorized agents or employees shall have the right, after reasonable notice to the Owner, to enter upon any Lot at reasonable hours on any day, and such entry shall not be deemed a trespass. In performing repairs or maintenance authorized under this Article, the Association will exercise due care, but shall not be liable for any loss, cost or damage caused by its action, except on account of its gross negligence or willful misconduct.

ARTICLE VII

GENERAL PROVISIONS FOR EFFECT OF THE COVENANTS

Section 701. Definitions. The following words and expressions used in these Covenants have the meanings indicated below unless the context clearly requires another meaning:

(a) Accessory Building: Detached garages, patios, swimming pools, covers, enclosures, dressing rooms or other similar structures, recreation facilities, separate guest houses without kitchens, separate servants' quarters without kitchens and other buildings customarily used in connection with the single family residence.

(b) Association. Hunters Point Homeowners Association, a Colorado nonprofit corporation, its successors and assigns.

(c) Basic Assessment. The assessment determined pursuant to section 603 of these Covenants which is uniformly applicable to all Lots in Hunters Point.

(d) Building Site. A Lot as established by the recorded plat or the combination of two or more Lots or portions thereof as approved by Declarant, but not including Common Area.

(e) City. The City of Colorado Springs.

(f) Common Area. Any real property designated as such on a Plat of any portion of Hunters Point and all Improvements on this property. Indication of any Common Area on a Plat shall automatically convey fee title to that Common Area to the Association. If Hunters Point is FHA Approved, then, upon written request of the Veteran's Administration, Federal Housing Administration, or other similar entity, Declarant will also execute and record a warranty deed conveying such Common Area to the Association free and clear of all liens and encumbrances. All Owners shall have a nonexclusive easement for use and enjoyment of the Common Area subject to the restrictions contained in these Covenants and such reasonable rules and regulations as the Association may adopt. Private roads, if created by easement and not held in fee title by the Association, will also be considered part of the Common Area.

(g) These Covenants. This Declaration and the provisions contained in it.

(h) Design Standards. The guidelines for uses and architectural approvals which the Association's Board of Directors may, from time to time, adopt pursuant to section 205 of these Covenants.

(i) Declarant. The Peregrine Joint Venture, a Colorado general partnership, or its specific assigns pursuant to section 717 below.

(j) FHA Approved. The approval of all, or any part, of Hunters Point by the Federal Housing Authority or Veterans Administration for purposes of granting federally insured home mortgage loans. Declarant does not currently intend to obtain FHA approval.

(k) First Mortgage. A Mortgage upon a Lot having priority of record over all other recorded encumbrances and liens thereon, except those governmental liens made superior by statute.

(1) Hunters Point. The area subdivided as Hunters Point Subdivision Filing No.1 according to the plat recorded in the office of the Clerk and Recorder of the County of El Paso and State of Colorado, together with any additional land subjected to these Covenants pursuant to section 712 below.

(m) Improvement. Any activity on a Lot which alters the previous exterior appearance of the Lot or any structures located on it. Grading activity, removal of natural vegetation, construction of any structures or additions to, repainting and material changes to any previously approved building, structure or landscaping all fall within the definition of an "Improvement."

(n) Lot. Each area designated as a Lot in any recorded plat of Hunters Point. Lots do not include the Common Area.

(o) Lot Lines. Front, side and rear Lot lines shall be the same as defined in the zoning regulations of the City of Colorado Springs in effect from time to time. In the absence of such a definition, a front Lot line is each boundary line (whether one or more) between the Lot and any public street. A side Lot line is any boundary line which meets and forms an angle with a public street except that for a comer Lot with two front Lot lines, the side Lot line is the boundary which forms an angle with the street which affords the principal access to the Lot.

(p) Mortgage. Mortgage shall mean any mortgage, deed of trust or other document pledging a Lot or an interest therein as security for payment of a debt or an executory land sales contract wherein the Administrator of Veterans Affairs is seller, whether such contract is owned by the Veterans Administration or its assigns, and whether such contract is recorded or not; or any other recorded document pledging a Lot as security for the payment of a debt or obligation.

(q) Owner. Is a person having fee simple legal title to a Lot. If more than one person has such title, all such persons are referred to collectively as "Owner" and shall exercise their rights as an Owner through such one of them as they may designate from time to time. Each Lot will be entitled to one vote on Association matters, irrespective of the number of Owners of the Lot.

(r) Plat. A properly recorded final plat of all or any portion of Hunters Point approved by the City pursuant to its subdivision ordinances.

(s) Structure. Any thing or device other than trees and landscaping the placement of which upon any building site might affect its architectural appearance, including by way of illustration and not limitation, any dwelling, building, garage, porch, shed, greenhouse, driveway, walk, patio, swimming pool, tennis court, fence, wall, tent, covering or outdoor lighting. Structure shall also mean an excavation or fill the volume of which exceeds five cubic yards or any excavation, fill, ditch, diversion dam or other thing or device which affects or alters the natural flow of surface waters upon or across any Lot or which affects or alters the flow of any waters in any natural or artificial stream, wash or drainage channel upon or across any Lot.

(t) Supplemental Assessment. An additional assessment to cover costs of maintaining Hunters Point's private roads which will be uniformly levied against all Lots served by private roads in the manner described in section 603 of these Covenants.

(u) Enumerations Inclusive. A designation which describes parcels or other things as from one number, letter or other designation to another includes both such numbers, letters or other designation and all in between.

(v) Gender and Number. Whenever the context permits, Owner or Owners shall be deemed to refer equally to persons of both sexes and to corporations, singular to include plural and plural to include singular.

(w) Due Notice. Due Notice means written notice delivered in accordance with the requirements of these Covenants at least ten days prior to the action required by the notice.

Section 702. Captions. Captions, titles and headings in these Covenants are for convenience only and do not expand or limit the meaning of the section and shall not be taken into account in construing the section.

Section 703. Board Resolves Questions of Construction. If any doubt or questions arise concerning the true intent or meaning of any of these Covenants, the Board of Directors of the Association shall determine the proper construction of the provision in question and shall set forth in written instrument duly acknowledged by the Board of Directors and filed for record with the Clerk and Recorder of El Paso County, the meaning, effect and application of the provision. This definition will thereafter be binding on all parties so long as it is not arbitrary or capricious. Matters of interpretation involving Declarant shall not be subject to this section 703.

Section 704. Covenants Run With the Land. These Covenants shall run with the land and shall inure to and be binding on each Lot and upon each person or entity hereafter acquiring ownership or any right, title and interest in any Lot in Hunters Point.

Section 705. Covenants are Cumulative. Each of these Covenants is cumulative and independent and is to be construed without reference to any other provisions dealing with the same subject matter or imposing similar or dissimilar restrictions. A provision shall be fully enforceable although it may prohibit an act or omission sanctioned or permitted by another provision.

Section 706. Waivers. Except as these Covenants may be amended or terminated in the manner hereinafter set forth, they may not be waived, modified or terminated and a failure to enforce shall not constitute a waiver or impair the effectiveness or enforceability of these Covenants. Every person bound by these Covenants is deemed to recognize and agree that it is not the intent of these Covenants to require constant, harsh or literal enforcement of them as a requisite of their continuing vitality and that leniency or neglect in their enforcement shall not in any way invalidate these Covenants or any part of them, nor operate as an impediment to their subsequent enforcement and each such person agrees not to plead as a defense in any civil action to enforce these Covenants that these Covenants have been waived or impaired or otherwise invalidated by a previous failure or neglect to enforce them.

Section 707. Enforcement. These Covenants are for the benefit of the Owners, jointly and severally, the Association, and the Architectural Committee and may be enforced by action for damages, suit for injunction, mandatory and prohibitive, and other relief, and by any other appropriate legal remedy, instituted by one or more Owners, the Association or the Architectural Committee, or any combination of these. Until seven years after these Covenants were filed of record, or when Declarant owns no property within Hunters Point, whichever is sooner, Declarant may also enforce these Covenants in any of the manners permitted above. All costs, including reasonable attorneys' fees, incurred by the Association or the Architectural Committee in connection with any successful enforcement proceeding initiated by them (alone or in combination with Owners) or during the period it is permitted to enforce these Covenants, incurred by Declarant, shall be paid by the party determined to have violated the Covenants. Any party exercising its right to enforce these Covenants shall not be required to post any bond as a condition to the granting of any restraining order, temporary or permanent injunction or other order. The rights and remedies for enforcement of these Covenants shall be cumulative, and the exercise of anyone or more of such rights and remedies shall not preclude the exercise of any of the others.

Section 708. Duration of Restrictions. Unless sooner terminated as provided in section 709, the restrictions and other provisions set forth in these Covenants shall remain in force until January 15, 2005, and shall be automatically renewed for successive periods of ten years unless before January 15, 2005, or before the end of any ten-year extension, there is filed for record with the Clerk and Recorder of El Paso County an instrument stating that extension is not desired, signed and acknowledged by the Owners of a majority of the Lots in Hunters Point.

Section 709. Amendment and Termination. All sections of these Covenants (except section 109) may be terminated at any time, and from time to time anyone or more sections of these Covenants (except section 109) may be amended or one or more new sections may be added to these Covenants by an instrument signed and acknowledged by the holders of at least two-thirds of the votes of each class of Members of the Association and filed for record with the Clerk and Recorder of EI Pas6 County. If Hunters Point is FHA Approved, then any such termination or amendment which has the effect of terminating the use or maintenance of the Common Area as specified hereunder shall also require the prior approval of the Veteran's Administration or the Federal Housing Administration.

Section 710. Partial Amendments. These Covenants may be amended for only a portion of Hunters Point by a written instrument executed by Declarant and one hundred percent of the then Owners of such portion of Hunters Point if:

(a) the portion of Hunters Point affected by such amendment contains at least twenty contiguous Lots; and Lots; and

(b) no improvements have been erected on any such

(c) Declarant reasonably determines that the amendments will not materially adversely affect the general living environment contemplated by these Covenants for the remaining Lots

Section 711. Additional Areas. From time to time, until December 31, 1993, Declarant may include additional areas within the real estate subject to these Covenants provided the areas included are within the area of either the Hunters Point PUD or Oak Hills PUD zone as approved by the City and in effect on the date these Covenants were first executed. If Declarant wishes to add land outside such area, and Hunters Point is FHA Approved, the Veteran's Administration or Federal Housing Administration must also approve such addition. All additions shall be effected by filing with the Clerk and Recorder of EI Paso County, Colorado, a supplemental declaration, together with a map and legal description designating the additional area to be included. All areas so added shall be subject to all these Covenants, and any references to Hunters Point in these Covenants shall automatically include such additional areas upon recording the supplemental declaration. Declarant may also impose additional restrictions on areas so added. All Lots in such additional areas will be of approximately comparable in range of size and style to those Lots comprising the initial subdivision.

Section 712. Master Homeowners Association. A master homeowner's association (the "Master Association") may be created for all or portions of the Peregrine area in the future to encourage a harmonious overall living and working environment. If an Association is formed, Declarant shall, until December 31, 1993, have the right by recorded document to give to the Master Association the right to enforce these Covenants in the same manner as the Association and the Architectural Committee, and to require that the Master Association approve in writing all amendments to the Covenants. However, Declarant may exercise this right only if:

(a) the United States Veteran's Administration has approved the Master Association for purposes of making federally insured loans on property subject to the Master Association's control, but this requirement will be applicable only if Hunters Point is FHA Approved; and

(b) the Master Association has no power to modify or amend these Covenants, impose additional restrictions on Hunters Point, or assess Lots in Hunters Point in any manner for payment of fees or other monies (other than as such assessments may be required by these Covenants). Owners of Lots platted and sold prior to formation of the Master Association may be offered the opportunity to join the Master Association, but will not be required to do so.

Section 713. Severability. If any of these Covenants shall be held; invalid or become unenforceable, the other Covenants shall not be affected or impaired but shall remain in full force and effect.

Section 714. Action in Writing. Notices, approval, consents, applications and other action provided for or contemplated by these Covenants shall be in writing and shall be signed on behalf of the party who originates the notice, approval, consent, applications or other action.

Section 715. Notices. Any writing described in section 714, including but not limited to any communication from the Architectural Committee or the Association to an Owner, shall be sufficiently served if delivered by mail or otherwise: (a) to the dwelling situate on the Lot owned by that Owner; or (b) if there is no dwelling, then to the address furnished by the Owner to the Architectural Committee and if the Owner has not furnished an address, then to the most recent address of which the Architectural Committee has a record.

Section 716. Declarant's Assigns. Declarant may assign any or all of its rights and duties under these Covenants, but any such assignment must be by written instrument specifically referring to section 716 of these Covenants. Any such assignment will become effective upon being properly recorded in El Paso County, Colorado.

AMENDMENT TO DECLARATION OF CONDITIONS COVENANTS, RESTRICTIONS AND EASEMENTS FOR HUNTERS POINT

This Amendment, dated the 17^th day of June, 1986, is by THE PEREGRINE JOINT VENTURE, a Colorado general partnership (“Declarant”), and amends a Declaration of Conditions, Covenants, Restrictions and Easements for Hunters Point dated May 23, 1986,and recorded with the El Paso County Clerk and Recorder on May 23, 1986 in Book 5174 at Page 1131 (the “Declaration").

Declarant wishes to modify the percentage of the votes which constitute a quorum contained in section 603(e) of the Declaration. Consequently, Declarant amends the following:

1. Section 603(e) of the Declaration is hereby amended to read in its entirety as follows:

603(e) Notice and Quorum for any Action Authorized Under sections 603(c) and 603 (d). Written notice of any meeting called for the purpose of taking any action authorized under sections 603(c) and (d) shall be sent to all Members not less than fifteen days nor more than sixty days in advance of the meeting. At the first such meeting called, the presence of Members or of proxies entitled to cast twenty-five percent of all the votes of each class of membership shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be fifteen percent of all the votes of each class of membership. No such subsequent meeting shall be held more than sixty days following the preceding meeting.

2. Declarant is the owner of all Lots subject to the Declaration.

3. Except as specifically provided in this Amendment, the Declaration shall remain unmodified and in full force and effect.

DECLARANT:

The Peregrine Joint Venture, a Colorado General Partnership

By: JVRC, Inc., A Colorado corporation, general partner

By: C. Lewis Christensen, Vice President

IMPORTANT: These Covenants are amended by HPHOA Policy Letters which are also available on this web site. Click here to open the Policy Letters.

THIS IS AN ELECTRONIC COPY OF THE HUNTERS POINT COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS. AN OFFICIAL COPY OF THIS DOCUMENT, DATED 5/6/1986, WITH NOTARY SEAL, AND SIGNED FOR THE DECLARANT BY C. LEWIS CHRISTENSEN, PRESIDENT, IS ON FILE WITH THE HUNTERS POINT SECRETARY.