Governing Documents 14 AnthemCommumty Council

Next Article

Maintenance ofNeighborhood Property

Declarant andthe Association may employ architects, engineers, or other Persons as deemed necessary to perform the review TheBoard mayInclude the compensation of suchPersons m theAssccienon's annual operating budget

43 GUidelines and Procedures

(a) DesIgn GUldelmesDeclarantmay prepare Design Guidelines, containing general provisions applicable to all of Anthemandall of AnthemParkside, respectively, aswellas specific provisionswinch vary from Neighborhood to Neighborhood, Any portion ofthe Design Guidelines specific to Anthem Parkside orany Neighborhood may not be In derogation ofthe architectural, design, and construction standardsand guidelines promulgated for all ofAnthem pursuant to the Community Covenant

The Design Guidelines aremtended to provide guidanceto Owners and Builders regardingmatters ofparticularconcern to the Reviewerinconsidenngapphcanons TheDesign Gwdelmes arenottheexclusrvebasis fordeCISIOns of theReviewer; and compliance Mth the DesignGuidehnesdoesnotguarantee approval ofanyapphcanon,

Declarant shall have sole andfull authonty to amend the Design Guidehnes specific to Anthem Parksrde aslongasItownsanyportion ofAnthem Parkside or has a nght to expand Anthem Parkside pursuant to Section 9 I, notwtthstandmg a delegation of reviewing authonty, unlessDeclarant also delegates thepower to amend UponterminationofDeclarant's nghtto amend,the ARC shallhavethe authonty to amend the Design Guidelines specific to Anthem ParksideWIth theBoard's and theCouncil's consent Anyamendments totheDesign Guidelmes shan be prospective only and shall not require mcdificanons toor removal of structures previouslyapproved oncetheapproved construction ormodification hascommenced Subject to theCommuruty-WIde Standard, there shallbeno otherhrmtanon onthescopeofamendments to theDesign Gtndelmes, and suchamendments mayremove requirements previously Imposed or otherwise maketheDesignGwdelmes lessrestncnve

The Reviewer shall make the Design Guidelines availableto Owners and Builders who seekto engage in development or construction wnhm Anthem Parksrde, In Declarant's sole discretion, the Design Gwdelmes maybe Recorded, mwincheventthe Recorded version, asIt may unilaterally be amended from tune tonme,shall control mthe event of any dispute asto whichversionoftheDesignGuidehneswas meffectatanyparticulartIme

(b) Procedures Except as otherwise specifically provided mthe Design Guidelines, no acnvmes shall commence onany portzon of Anthem Parkside until an application for approval has been submitted toandapprovedbythe Reviewer Such apphcation shall be in the form required bythe Reviewer and shall mclude information reqwred under the Design Gurdelmes, suchas plans and specifications showing sitelayout, structural design, extenor elevations, extenormaterials and colors, landscaping, drainage, extenor hghting, imganon, and other features ofproposed construction, asapphcable TheDesign Guidelines and theReviewer may require the submission of such additional mformanon as may be reasonably necessary to consider any apphcatron

In reviewing eachSUbnuSSIOn, theReviewer mayconsider anyfactors it deems relevant, mcludmg, WIthout !mutatIOn, harmony of external design WIth SUlTOundmg structures and environment Decisions maybe based on purely aesthetic considerations Each Owner acknowledges that determmanons as tosuchmatters are purely subjective and opimonsmayvary as tothedesiralnhty and/or attractiveness ofparticular improvements TheReviewershallhave thesole discretionto make final, conclusive, and bmdmg determmations on matters of aesthetic Judgment and such determmanons shallnotbe subject to review so long as made m good faith and in accordance With theprocedures setforth herem

TheReviewer shall make adetermmation oneachapplication after receipt ofa completed. application and allmfbrmation required by the Reviewer TheReviewermaypermitorrequire that an application for approval be submitted or considered in stages, in which case,a final decisionshall notberequireduntil after thefinal, requiredsubmission stage. TheReviewermay (,) approve the apphcanon, WIthorWIthoutconditions, (11) approve a portion ofthe application and disapprove otherportions, Or[m} disapprove the apphcanon,

Reviewer approval shallnot constitute approval oforwaiver of approvals orreviews by Mancopa County oranyother .12J.UDJCJpaltty orgovernmental agencyorentityhavmgjunsdicnon overarchitectural orconstructionmatters

The Reviewer shall notIfy the applicant m writing of thefinal determination onany apphcation within 45days after Its receipt of a completed application and all requested information, In theevent that theReviewer fads torespond in a tunelymanner, approval shall be deemed to have been given, subject to Declarant's right toveto pursuant to Secnoa 41 However, no approval, whether expressly granted ordeemed granted, shall be mconsisteat with theDesignGwdelmes unlessa wntten vanance hasbeengranted pursuant toSection45

Notice shallbe deemed to have been given at the time the envelope containing the response IS deposited WIth theUS Postal Service Personal delivery ofsuch wnttennotice shall, however, be sufficient and shall be deemed to have been grven at thetune of delivery totheapphcant

As part of any approval, the Reviewer may require that construction commence in accordance wtth approved plans within a specified nme penod If construction doesnot commence within therequired penod, suchapproval shallbe deemed Withdrawn and Itshall be necessary forthe Owner to reapply for approval before commencing any activities Once construction IS commenced, It shall be dilrgently pursued to completion All work shallbe completed wrthm one year of commencement unless otherwise specified In the notice of approval orthe DesignGurdelmes, orunless theReviewergrants anextension m writing, which It shall notbe obltgated todoIf approved work IS not completed within the required tune, It shall be considered nonconformmg and shall be subject to enforcement action bythe AsSOCIatIon, Declarant, theCouncil, oranyaggneved Owner

Notwtthstandmg theabove, landscaping shall be installed, as approved, In the front and Side yards ofaLotwithin 90daysfrom the dateof the mrtral closmg ofescrow ontheLotorthe Issuance of a certificate of occupancy onthe Lot, whichever IS later Landscaping onall other

portions ofthe Lot, including the rear yard,shallbe installed withm 180daysfromthedate of themmal closing ofescrow ontheLotortheIssuance ofa certificate ofoccupancy ontheLot, whichever IS later 'The Reviewer's decrsrcn as tothe appllcablbty of these mstallatlOll requirements toany particularportion ofaLotshallbefinal

The Reviewer may, by resolution, exempt certain acnvrtres from the application and approval requirements of this Article, provided such actrvitres are undertaken m strict compbance WIth the reqwrem.ents of such resolution, For example, Bwlders may submit and receive pre-approval oflandscaping orother plans for general application, Such pre-approved plans shall not reqwreresubmissionpnor touse onaparticularLot

44 NoWalVerofFuture Approvals

Each Owner acknowledges thatthe Persons reviewing applications underthis Article WIll change from tuneto time and that 0PlDlODS on aesthetic matters. aswellas interpretation and apphcatIon of the Design Gutdelmes, mayvary accordingly In addition, each Owner acknowledges that It maynot always bepossible to idennfy objectionable features until work IS completed, in which case it may be unreasonable to require changes tothe improvements involved, butthe Reviewer may refuse toapprove similar proposals ui thefuture Approval of apphcations or plans, orm connecaon WIth any other matter requmng approval, shall not constitute bmdmg precedent In any other matter noran estoppel or waiver of the right to Withhold approval astoany sunrlar applications, plans,orother matters subsequently or additionally submitted for approval.

45 Vanances

TheReviewermayauthorize vanances from compliance with any of Its gw.dehnes and procedures when CIrcumstances suchastopography, natural obstructions, hardship, or aesthetic orenvironmental consideranona require, but only In accordance WIth duly adopted regulations. Suchvanancesmayonlybe granted, however,when uruque circumstances dictate andno variance shall (a) be effective unless in wntmg, (b) be contrary totlus Declaration, the Commumty Covenant, orthe Community-Wide Standard, or(c)estopthe Reviewer from denying a vanance mother circumstances For purposes of this Section, the inability to obtain approval ofany governmental agency. theIssuance ofany permit, ortheterms ofanyfinancing shallnotbe considered a hardship warranting avanance Notwithstandmg theabove,the Reviewer may not authonze variances without the wntten consent of Declarant solongas Declarant ownsany portion ofAnthem Parkside orhasthe nght to annex any property described mExhibit "B" ortheCouncil

46 Lmutanon ofLIablhty

Thestandards andprocedures mtins Article are intended asamecharusm for mamtaining and enhancing the overall aesthetics of Anthem Parksrde, theydonot create any duty to any Person The Reviewer shallnotbear any responsrbrhty for ensunng (a) structural mtegnty or soundness of approved construction or modiflcanons, (b) comphance With burldmg codes and other governmental requirements, (c) that all Dwelhng Umts are of comparable quality, value,

SIZe, ordesign, or(d) that Improvements WIll beaestheticallypleasing orotherwiseacceptable to neighbonngpropertyowners Declarant,theAssocranon,theCouncil,theBoard,any committee,oranymember of any of theforegomgshallnotbeheldliableforany c1aun whatsoever ansmgout of construcncn onor modzflcenoas toany Lot. In all matters, th6 ReviewershallbedefendedandindemnifiedbytheAssociationasprovided in Section76.

4 7 Enforcement

Any construction,alteration,orotherworkdonemviolation ofthIsArticleorthe Design Gwdelmes shall be deemed tobe nonconforming Upon wntten request from the AsSOCIatIon, Declarant. orthe Council, Owners shall, at their owncost and expense and wrthm such

reasonable tune frame asset forth m such wntten nonce. cure the nonconformance to the

satisfaction ofthe requester or restore the Lot and/or Dwelling Unit to substantIally the same condition as existed pnorto the nonconformmg work Should an Owner fail to remove and restore asrequired, the Association, Declarant, the Council, ortheir designees shallhave thenght to enter the property, remove the violation, and restore the property to substantially the same condmonaspreviously existed,Allcosts,togetherWIth theinterestattherateestabhshed by the Board(nottoexceedthemaxrmurnratethenallowedbylaw),maybeassessedagainstthe benefitedLotandcollectedasaBenefited Assessment unlessotherwiseprchibrted In this Declaration.

Allapprovalsgrantedhereundershallbedeemedconditioneduponcompletion of all elements oftheapproved work and aU work previously approved With. respect to the same Lot, unlessapprovaltomodtfyanyapphcatIon has beenobtarned In theeventthatanyPerson faJls to commence and diligently pursue to completion allapproved work by the deadlme setforth In the approval, Declarant, the Associanon, orthe Council shall be authonzed, after notice to the Owner ofthe Lotand anopportunity to beheard ill accordance With the By-Laws, to enter upon the Lotand remove orcomplete any incomplete work. and to assess allcosts incurredagainst the LotandtheOwner thereof asaBenefited Assessment unlessotherwiseprohibitedmthis Declaranon,

All acts byanycontractor, subcontractor, agent, employee) orinvitee ofanOwner shall

be deemed asanactdonebyoronbehalfof such Owner Any contractor, subcontractor, agent,

employee. orother invitee ofanOwnerwho falls tocomply With theterms and previsions oftIns Article and the Design Guidelmes may beexcluded from Anthem Parksrde, subject to the nonce

and heanng procedures contained In the By-Laws In such event, neither Declarant, the

Associanon,orthe Council, theirofficersanddirectors,shallbeheldbahle to any Person for exercisingthe nghts grantedbythisparagraph.

The ASSOCIation shallbe pnmanly responsibleforenforcement of thisArticle If; however, mthe discretion of Declarant, the AsSOCIatIon falls to take appropnate enforcement action, asauthonzed herein, within a reasonable time penod, Declarant, for solongas it O\VDS any property descnbed in Exhibits "A" or"B" tothis Declaration, may, but shall notbe obligated to, exercise enforcement nghts In the same manner as set forth above In eddrnon to the foregoing, the Assocranon, the Council, and Declarant shall have the authonty and standing to pursue alllegal and equitable remedies available to enforce the provrstons of this Article and the

decisions of theReviewer If theAssocianon,theCouncil,orDeclarantprevail,theyshallbe entitled to recover allcosts including, WIthout limitanon, attorneys' feesand court costs, reasonably incurred msuch action.

4 8 CapacIty Reservation Charge

Totheextent requued, aCapacityReservationCharge(asdefinedmtheAgreementfor TheVIllagesatDesert Hills Water/WastewaterInfrastructurebetweenDelWebbCorporation andCmzensUnlrnesCompany,dated as ofSeptember27,1997(the "Agreement"» sballbepaid bya Builder atthe tune ofISsuance ofa building permit, and Ul accordance WIth theAgreement, foreach Lotorotherportion oftheProperues that willusethewater.

ArticleV

MaintenanceandRepair

5I

Mamtenance ofLots.

EachOwnershall maintain hrsorherLot,mcludmgtheDwellmgUmtand all landscaping and other improvements compnsing theLot. aswenasany sidewalk located on or adjacent totheLotand theinterior surface ofany penmeter wall orfence, in amanner consistent WIth the Governwg Documents,the Commumty-Wrde Standard,andallapphcablecovenants, unless someor all of such maintenancerespcnsibrhty IS otherwise assumed byor assigned to (and accepted by) the Assocrenon ora Neighborhood Associanon, A penmeter wall orfence shallbeanyfencewhich servesasa boundary between aLotand Common Area" otherportions oftheArea ofCommonResponsrbihty,oranyPnvateAmenity.

A penmeter wallar fence shall beany fence whIch serves asa boundary between aLot

andanyareawhich IS notaLot,includingCommonArea, Council ownedproperty,public streets, or any Pnvate Amemty The Council shall mamtam the extenor surface (that portion facmgawayfromtheLot) of all penmeter wallsandfences In addmon, the CouncJ1 shall maintain allwrought iron portions (both extenor and intenor) ofanypenmeter fence With the exception ofwrought iron, eachOwner IS responsible for marntammg themtenor surface ofall _ penmeter wallsand fencesonsuchOwner's LotTheCouncil shallmaintain penmeter walls and fences as a Council Expense(asdefined m the Commuruty Covenant),provided,Ifsuchwork IS made necessary bythe actions of theLot Owner. thecosts incurred bythe Council maybe assessed specifically againstthebenefitedLotOwner, in accordance WIth theCommumty

Covenant

SomeLotscontamDeclarant-installedwallswhichincludeplanters (I e,built-m containersintended for plant matenal) asa component of thewall If such walls are not penmeter walls as descnbed above, the Lot Owner shall be responsible for mamtammg such wallsandplanters If suchwallsarepenmeterwalls,theCouncilshallmaintainanyplanters located on the exteriorSide ofthewalland theOwnershall mamtam thoseplanters located onthe mtenor Side of thewall Maintenance of the planters shall Include structural and aesthetic maintenanceand keeping and mamtammgplantmgmatenals In accordance WIth the CommunityWIde Standard Theremainder ofthe planter wall shall bemaintained asdescnbed above

In addition to any other enforcement nghts, Ifan Owner fallsto perform properly hIS or her maintenanceresponsrbihty, theAssociation may Record a notice ofvrolanon and/or perform

such maintenance responstbilitres and assessall costs incurred asa Benefited Assessment m accordance WIth Section 85TheAssociation shall afford the Owner reasonable nonceand an opportunity to cure the problem pnor to entry, except when entry IS required due to an emergency situation,

52 Mamtenance ofNeighborhood Property

Upon resolution ofthe Board, the Owners wrthm each Neighborhood shaIl beresponsible for paymg, through Neighborhood Assessments, thecosts ofoperating, mamtainmg, and msurmg certain portions ofthe Area ofCommon Responsibility WIthin oradjacent tosuchNeighborhood,

This may mclude, WIthout bnntanon, the costs ofmamtammg any signage, entry features,and nght-of-way between the Neighborhood and adjacent public roads, pnvate streets within the Neighborhood, and lakes or ponds within the Neighborhood, regardless of ownership and regardless of the factthat suchmaintenancemaybeperformedbytheAssociation orthe Council; provided,however, all Neighborhoods wluch are sunI1arly SItuated shall he treated the same

ANeighborhood Association shall maintain Its common property and any other property for which It has mamtenance responsibrhty m a manner consistent With the Govemmg Documents, the Conunumty-Wide Standard, and all applicable covenants

A Neighborhood Association also shall beresponsible for mamtammg and imgatmg the landscaping within that portion of any adjacent Common Area or public nght-of-way lymg between the boundary of its common property and any wall, fence, or curb located on the Common Area or pubhc nght-of-way wrthm 10feet ofIts boundary, provided, there shall be no right toremove trees, shrubs, orsimilar vegetation from tinsarea Without pnorapprovalpursuant to Article N

The ASSOCiation may assume mamtenance responsibility for property WIthin any Neighborhood, in addmon to that designated by Supplemental Declaration, either by agreement or because, In the opmron of the Board, a Neighborhood Association fails to perform Its mamtenance responsibrhty orthelevel and quality of service then being provided 1S not consistent WIth the COmIDUIllty4Wide Standard. AIlcosts of mamtenance pursuant to this paragraph shall be assessed asa Neighborhood Assessment ora Benefited Assessment against only the Lots withm the Neighborhood to wluch the services are provided The provision of servicesin accordance WIth thisSectionshallnotconsnrutediscnmmanon WIthin aclass

53 Remonsiblhtv for RepaIr and Replacement

Unless otherwise specifically provided mthe Govemmg Documents or mother Instruments creating and assigning maintenance responsrbrhty, responsrlnhty for mamtenance shall mclude responsibility for repair and replacement, asnecessary tomaintain the property toa levelconsistentWIth the Commumty-Wide Standard

By takmg title to aLot,each Owner covenants and agrees tocarry property insurance for the full replacement costofall insurable unprovements on his or her Lot, lessa reasonable deductible, unless either the Neighborhood Association (If any) for the Neighborhood In wluch

theLotis located orthe Assocranon cames such insurance(which theymay,but are not

obligated todohereunder) Ifthe Assocranon assumes responsibility forobtammg any insurance coverage onbehalfof Owners, thepremiums for suchinsurance shallbe levied as a Benefited AssessmentagainstthebenefitedLotandtheOwner

Each Owner further covenants and agrees that in theevent ofdamage toordestruction of structures onorcompnsmg his Lot, theOwner shallpromptly repair orreconstruct in a manner consistentWIth theongmalconstructionorsuchother plans and specifications as are approved m

accordance WIth Article N In the event that such repair and reconstruction cannot be promptly undertaken, the Owner shall clear theLot and maintain It In aneat and attractive condition consistent with the Community-Wide Standard andsballpresentatimetablefor repair and reconstructlon tothe Board wrthm 90 days of the damagmg or destructive event The Owner shallpayanycostswlncharenot covered bymsuranceproceeds

ThisSectionsballalsoapplytoany Neighborhood Associationresponsibleforcommon property wrthm theNeighborhood In thesame manner as ifthe Neighborhood AsSOCIatIon were anOwnerandthecommonpropertywereaLot. Additional Recordedcovenants applicable to any Neighborhood may establish requirements for insurance and more stnngent standards for rebuilding orreconstructIng structures ontheLots wrtlun such Neighborhood and for clearing and mamtainmgthe Lots ID the event the structures are notrebuiltorreconstructed.

Article VI

The AssociatIon andItsMembers

6I

Functionofthe ASSOCiation

The AsSOCIatIon shall betheentity responsible formanagement, maintenance, operation, andcontroloftheArea ofCommonResponsrbrhty The Association alsoshallbethepnmary entIty responsible forenforcement oftheGovernmg Documents TheAssociationshall perform its functions in accordance WIth the GoverningDocuments and Anzonalaw.

62 Memberslnp

EveryOwnersballbeaMemberofthe Assocranon, Theresballbeonlyonememberslnp perLot IfaLot IS ownedbymorethanonePerson,all co-Owners shallsharethepnvilegesof memberslup, subject to reasonable Board regalanon and therestnctlons onvotmgset forth m Section 6 3(c)and In the By-Laws, andallsuch co-Owners shallbe jointly and severally obligated toperformthe responsrbihties ofOwnersThememberslnp nghtsofanOwnerwhich

IS nota natural person may be exercised by any officer, director, partner, or trustee. orbythe individual designated fromtimetotimebytheOwnermawntten mstrwnent providedtothe Secretary oftheAssociation

63 Vollng

TheAssociation shall havetwo classesofmembership, Class "A" and Class"B "

(a) Class'IA" Class "N' Members shallbeallOwners except the Class"B" Member,

Ifany Class "N! Members shall haveone equal votefor eachLotmwhichthey hold the interest required formembershipunder Section 62,exceptthatthereshall be only one vote per Lot No voteshallbe exercisedforany property winch IS exemptfromassessmentunder Section 810.

(b) Class"B" The soleClass"B" Member shallbe Declarant The Class"E" Member may appoint a majority of themembers of theBoardduringtheClass"B"Control Penod, as specifiedmthe By-Laws. Addrtronal nghts oftheClass"B" Member arespecifiedm therelevant sectionsofthe Govermng Documents

TheClass"B"membershipshall tenomate npontheearlier of

mstrument (I) twoyearsafterexpiration oftheClass"B" Control Penod, or

(11) when,mItsdiscretion,Declarantsodeterminesanddeclares in a Recorded

Upon tenmnanon of theClass"E" membership, Declarant shall bea Class "A" Member entitled toClass I'N' votesfor eachLotWIDch It owns

(c) ExercIse ofVotmg RIghts Ifthere 15 more than oneOwner ofa Lot. the vote for suchLotshallbe exercised asthe co-Owners determme among themselves and advise the Secretary ofthe AsSOCIatIon m writing pnor to the votebemgtaken. Absent such adviceand ill theevent that more than onesuchco-Owner casts a vote, the Lot's vote shallbe suspended and shallnotbeincluded ill the final votetallyonthe matter being voted upon.

64 Neighborhoods

EveryLotshallbe located within a Neighborhood, Unlessanduntiladditional Neighborhoods areestabhshed, Anthem Parkside shall COOSlSt of asmgle Neighborhood Lotswtthm a particular Neighborhood maybe subject to covenants ill addition tothoseset forth In thisDeclarationand, Ifrequiredby laworotherwiseapprovedbyDeclarant,theOwners within the Neighborhood may be members of a Neighborhood Association madditiontothe

AsSOCIatIon

Exhibit "A" to this Declaration and each Supplemental Declaration submitting acdrnonal property totlusDeclaration uunally shallassignthe submitted propertytoaspecific Nerghborbocd (bynameor other rdentrfymg designanon), wluch Neighborhood may be then existing ornewlycreated.SolongasIthasthe nght tosubject additional propetty totlus Declaration pursuant to Section9 I, Declarant may unilaterally amend this Declaration orany Supplemental Declaration to create Neighborhoods or redesignate Neighborhood boundanes However, twoor more existmg Neighborhoods shaII notbe combmed without the consent of Owners ofamajority ofthe Lots m the affectedNeighborhoods

The Owners withm any Neighborhood may request that theASSOCiation provide ahigher levelof service than lhat which the ASSOCiatIOn generally provides toallNeighborhoods ormay request that the Associationprovidespecialservices for the benefit of Lots tn such

Neighborhood, Thecostofsuchservices, whichmayInclude areasonable administrativecharge In suchamount as theBoarddeemsappropriate(provided,anysuch admuustralIvechargeshall apply ata uniform rate per Lot to all Neighborhoods receiving the same service), shall be assessedagainstthe Lots within such Neighborhood as aNeighborhoodAssessment Uponthe affirmative vote, wntten consent, or a combination thereof, ofOwners ofa mejonty oftheLots withintheNeighborhood,theAssociationshall providethe requestedservices,

Article vn Association Powers and Responsibilities

7 1 Acceptance and Control ofAssociatIon Propet:t'l

(a) TheAssociationmayacquire,hold,lease (as lessor or lessee), operate, and dispose oftangibleandintangiblepersonalpropertyandrealproperty,subjecttotheprovisions of Sections155 and 18.4 The Association may enter into leases, licenses, or operating agreements for portions oftheCommon Area, for such consideration orno constderation asthe Board deems appropriate,topermit use of such portionsof the Common Area by third partiesfor thegeneralbenefitorconvenience ofOwners and otherresidentsofAnthem Parkside

(b) Declarant and Its designees may convey to the Association, and the AsSOCIation shall accept,personalpropertyandfeentle, leasehold, orotherpropertyinterests In anyreal property, unproved. orummproved, described In Exhibits "A" or"B 11 Upon Declarant's wntten request, the Association shall reconvey to Declarant anyumrnproved portions of the Common Area ongmally conveyed to the Association for no consrderauon, to the extent conveyed by Declarant In errororneeded byDeclarant tomake minoradjustments inproperty hoes

(C) TheAssociation shallbe responsible for management, operation, and control of the Common Area. subject toany covenants and restncnons set forth m the deedor other instrument transferring suchproperty tothe Association. Wlthout the necessity of complying WIth theproceduressetoutmArttcle ill, theBoardmayadoptsuchreasonable rules regulanng useofthe Common Area asIt deems appropnate

7 2 MaIntenance ofArea ofCommon Responslblltty.

(a) The Association shall mamtam, m accordance With the Community-WIde Standard, theArea ofCommonResponsrbrlny, whichmayinclude,butneednotbe limited to

(1) allportions ofandstructures SItuated upontheCommonArea (includmg, Without limitation, areas designatedasopen space orasretennonareas),

Parkside,aod (11) landscaping WIthin public rights-of-way withmorabuttmgAnthem

(111) such portions of any addtttonal property as maybe dictated by Declarant, tlns Declaration, anySupplemental Declaration, any Plat ofanyportion ofAnthem Parkside, or any contract, covenant, oragreement for rnamtenance thereof entered mto by,or for the benefit of. the Association, and which IS not otherwise mamtamed by the Council

TheAssociation shallnotbe hable for any damage or mjury occurring on, oransing out ofthe condition property winch Itdoes not ownexcepttothe extent thatIt has been negligent In theperformance of Itsmamtenance responsibrlrties

(b) The Assccianon shall mamtain theCommon Area faclhties and eqwpment in continuous operation, except foranypenods necessary, as determmed mthesole discretion of the Board, to perform required maintenance orrepairs, unlessClass "A" Members representing 75% of the votes m the Association and the Class "B" Member. if any. agree m writing to discontinuesuch operation,

(c) Thecosts associated WIth maintenance, repair, andreplacement of theAreaof Common Responsibility shall bea Common Expense, provided, the Association may seek reimbursement from the owner(s) of or other Persons responsible for, certain portions of the Area of Common Responsrbrlrty pursuant to this Declaration or other Recorded covenants or agreements with the owner(s) thereof. Maintenance, repair, and replacement of Limited CommonAreas shall bea Neighborhood Expense assessed to theNetglIborhood(s)to which such Limited Common Areas areassigned, notWIthstandmg that the AsSOCIatIon maybe responsible

forperfonmng suchmamtenance hereunder

73. Insurance

(a) ReqUIred Coverages The Association shall obtain the insurance coverage the

Board deems necessary ordesirable In aneffort tosatisfy therequirements ofthe Federal Home Loan Mortgage Corporation,theFederalNationalMortgage Association, theUS Department of Veterans Affairs, andtheUS Department ofHousing and Urban Developmeot, as applicable to Anthem Parksrde Accordingly, theBoardshallobtain casualty insuranceforall insurable Improvements. If any. which the ASSOCIation JS obhgated to mamtam. Thrsinsurance shall provide,ataminimum, :lire and extended coverage and shallbe in anamount sufficienttocover the full replacement cost of any repair orreconstruction mthe event ofdamage or destruction fromanysuch hazard.

TheBoardalsoshall obtain apublic habrhty policy applicable tothe Common Area covenng the Association and theMembers for alldamage or injury caused bythenegligence of the Association orany of ItS Members or agents, and, If reasonably available, directors' and officers' habrhty insurance Thepublic lrabrhty policy shall havea combined smgle hmit of at least $1,000,00000 Pohcres may contain a reasonable deducnble as determmed bytheBoard. Theamount of any deductible shallbetreatedasa Common Expense ora Neighborhood Expense In the same manneras the premiumsfortheapplicable Insurance coverage, orleviedas

aBenefited Assessment

In addition to other Insurance required by this Section, the Board shall obtain worker's compensation Insurance, If and to the extent necessary to satisfy the requirements ofapplicable law,and afidelity bond orbonds on directors, officers, employees, and other persons handlmg or responsible for the ASSOCIatiOn's funds, If reasonably available If obtained, the amount of fidelity coverage shall atleast equal three months' total assessments plus reserves on hand.

Fidelity coverage shall contain a waiver of all defenses based uponthe exclusion of persons servingWithout compensation. All such insurance coverage shall be wntten ill theAssociation's

name

In addmon,the Association shall, If so specified inaSupplemental Declaration apphcabletoany Neighborhood, obtamand maintain propertyinsuranceonthe insurable improvements on theLots withm such Netghborhocd whichinsurance shall comply with the reqmrements ofsubsection (a)(I) Anysuchpoliciesshallprovideforacertificateofinsuranceto be furnished uponrequesttotheOwnerofeachLotinsured,

PremiumsforallinsuranceontheAreaof Common Responsibilityshallbe Common Expenses,exceptthat(,)prenuumsfor property insurance onLotswithina Neighborhood shall bea Neighborhood Expense,and(u)prenuumsforinsurance onLimitedCommonAreasmaybe includedIn the Neighborhood ExpensesoftheNerghborhoodfs) towluchsuchLirmtedCommon Areas are assigned unlesstheBoard reasonably deternunes thatothertreatment ofthepremiums

IS more appropnate

(b) PolicyReqrnrements The Association shall arrange foranannualreviewofthe sufficiencyof the insurance coverage It camesfor Itself by oneor more quahfied Persons, at leastone ofwhommustbe familiar WIth insurable replacement costs ill the Mancopa County, Anzonaarea. All Association pohcies shall providefor acertificate ofinsurance tobe furmshed totheAsSOCIatIon and., uponrequest, to each Member insured,

(c) RestoTIng Damaged Improvements In theevent of damage to or destrucnon of Common Area orother property wInch the Associanon IS obligated to insure, theBoard Or Its dulyauthonzedagentshallfileandadjustall insurance claimsandobtamreliableanddetailed estimates ofthecostofrepaumg orrestonngthe property 10 substanllallytheconditionIn which It existedpnortothedamage, allowmg forchanges orImprovements necessitated by changes m applicablebuilding codes

Damaged Improvements ontheCommon Area shall be repaired or reconstructed unless

the Class nAil Members representing at least 80% of the total votes m the Association, and Declarant, Ifany, decide within60 days after thelossnotto repair orreconstruct Ifthe damage IS toLurutedCommon Area, 80% of the Owners towhichsuchLuruledCommonArea IS assignedand Declarant, Ifany, must votenottoreparrorreconstruct

If either the insurance proceeds orestunates oftheloss,orboth., arenotavailable tothe Association within such60-daypenod,thenthepenodshallbeextendeduntilsuch funds or Information are available However, such extension shan notexceed 60 additional days No Mortgageeshallhavethe nght to partrcspate zn the deternunallon of whetherthedamageor destruction totheCommon Area shall berepaired orreconstructed,

Ifa decrston IS made notto restore the damaged improvements, and no alternative Improvements are authonzed, the affected property shall be cleared of all debns and rums and thereafter shall be mamtamed by the ASSOCiation In a neat and attractive, landscaped condition consistent WIth the Community-Wide Standard

Exceptasotherwiserequired bytheAct,anyinsurance proceedsremainingafterpaying thecostsofrepair orreconstruction, orafter suchsettlement as IS necessary and appropriate, shall beretainedbythe Association forthebenefitof ItsMembers orthe Owners of Lotswithmthe insuredNeighborhood, as appropnate, and placed in a capital unprovements account This 15 a covenantforthebenefitof Mortgagees andmaybeenforcedbytheMortgageeofany affected Lot

Ifinsurance proceeds are insufficientto cover thecosts of repair orreconstruction, the BoardmaylevySpecialAssessments tocovertheshortfallagamstthoseOwnersresponsible for thepremiums fortheapplicable lI1SUl"3D.ce coverage under subsection (a)

7 4 ComplIance and Enforcement

(a) TheBoard mayimposesanctions for violationofthe Governmg Documents after nonce and an opportumty fora beanng In accordance with the procedures set forth In theByLaws TheBoard shall establish a range ofpenalties forsuch violations, WIth. violations ofthe Declaration, unsafe conduct, and harassment or intentionally malrcrous conduct treated more severely than other violations Suchsanctions mayInclude. without lnmtanon, thoseotherwise specifically setforthmtheGovemmg Documents, and(I) Imposmg a graduated rangeof reasonable monetaryfineswInchshallconstituteahenuponthe VIolator's Lot,(u) suspendmg an Owner's nght to vote. (m) suspending any servicesprovidedby the AsSOCIatIon. (IV) exercising self-help ortalangaction to abate anyvrolation oftbe Governing Docwnentsm anon-emergency srtuatron, and (v)levymgBenefited Assessments tocovercosts Incurred. bythe Associanon or CounciltobnngaLotmto compliance wtththeGovernmg Documents

In theevent that any tenant or resident of a Lot other than the Owner VIolates the Governmg Documentsandafine IS unposed,thefineshallfirstbeassessedagainstthe VIolator; provided,however,Ifthefine IS notpaidbythe VIolator withinthettmepenodsetbytheBoard, the Ownershallpaythefineupon noticefrom theBoard Foreach failuretocomply,theamount ofsaid fineshallnotexceedthemaximum permitted bytheAct

In addition, the Board may take thefollowmg enforcement procedures to ensure comphance WIth the Governmg Documents WIthout thenecessityofcomplianceWIth thenotice andheanngproceduressetforthmtheBy-Laws

(1) exercising self-help In anyemergency situation (specifically mcludmg, but nothmrtedto,thetowingofvelncles that are In violationofparlang rules),or

(u) bnngmgswtatlaworm equity to enjoin any Violation orto recover

monetary damages orboth.

All remedies set forth m the Goverrung Documents shall be cumulative ofanyremedies available atlawor In eqwty In any action to enforce the Govemmg Docwnents, Ifthe ASSOCiatIon prevails, It shall be entitled to recover allcosts, mcludmg, Without ltmitanon, attorneys' fees and court costs,reasonably incurred 10 such acnon

(b) The decision to pursue enforcement action many particular case shall be left to the Board's discretion, except thatthe Board shallnotbe arbitrary or capricious in takmg enforcement action Without hmmng the generality ofthe foregomg sentence, the Boardmay determine that, under the circumstances ofa particular case (1) the Association's position is not strong enough to justify taking, or It IS not in the Association's best interests (based on hardslnp, expense, or other reasonable cntena) to pursue, anyorfurther action, (11) the covenant, restncnon, or rule bemg enforced IS, or IS hkely tobe construed as, mconsistent with apphcahle law, or (111) although a technical violation may exist or may have occurred, It IS not of such a material nature astobe objectionable to a reasonable person or to justify expencb.ng the Association'sresources Such a decision shall notbe construed a waiver of the right of the Association to enforce such provision ata later timeunder other circumstances or preclude the Association from enforcing any other covenant, restriction, or role

The Association, by contract or other agreement, may enforce applicable cityand county ordinances, If applicable, and Mancopa County or other governmental euthonues may enforce ordmances within Anthem Parkstde

75 ImplIed RIgbts: Board Authonty

The Association may exercise any right or pnvilege givento It expressly by the GovernmgDocwnents orreasonably unphed fromor reasonably necessary to effectuate any such nght or pnvilege Except as otherwise specifically provided mthe Governmg Documents or by law,all nghts and powers ofthe Association may be exercisedbythe Board without 3 vote ofthe membership

76 IndemnIficatIOn ofOfficers. Directors. andOthers

(a) The Association shall mdemmfy every officer,director,and COD1I11lttee member agamst all damages and expenses, mcludmg counsel fees, reasonably incurred ID connection With any action, SUIt, or otherprcceedmg (mcludmg settlement ofany SUIt or proceeding, Ifapproved by the then Board ofDirectors) to wlnch he or shemay be a party by reason ofbeing or havmg been an officer, director, or committee member, except that such obhgation to indemrufy shall be limitedtothoseactionsfor wlncb habihty IS hmited under Anzonalaw.

(b) The officers, directors, and committee members shall not be liable forany mistake of Judgment, negligent or otherwise, exceptfor their own individual willful nusfeasance, malfeasance. misconduct, orbadfaith The officers and directors shallhaveno personal habihty Withrespect toany contract orother commitment made or action takenm good faith on behalfof the Association (except tothe extent that such officers or directors may alsobe Members ofthe Assocratron)

77 Safety and Secunty

Each Owner and occupant ofa Lot, and their respective guests and lnvuees, shall be responsible for their own personal safety and the security of their property in Anthem

Parkside. The Association may, but shall Dotbe obligated to, maintain or support certain activities within Anthem Parkside designed to enhance the level ofsafety or securrty which each person provides for himself and his property. The Association, the Council, and Declarant shall not in any way be considered insurers or guarantors of safety or secunty within Anthem Parkside, nor shall they be held liable for anylossor damage by reason of faIlure to provide adequate security or ineffectivenessof security measures undertaken.

No representation or warranty is made that any systems or measures, including any mechanism or system for limitIng accessto Anthem Parksrde, cannot be compromised or circumvented, nor that any such systems or security measures undertaken WIll in all eases prevent loss or provide the detection or protectIon forwhich the system is designed or intended.. Each Owner acknowledges, understands, and shall be responsible for informing its tenants and all occupants ofits Lot that the Associatlon, Its Board and committees, the CouncIl, and Declarant are not insurers or guarantors of security or safety and that each Person within Anthem Parkside assumes all rrsksof personal injury and loss or damage to property, ineludIng Lots and the contents ofLots, resulnng from actsof third parties,

78 ProVlslon ofServIces

The Association may provide, or provide for, services and facilmes for all or any ofthe Membersand their Lots, andshallbeauthonzed to entermtoand tennmate contractsor agreements WIth otherentities,including Declarant, toprovidesuchservicesandfacihnesThe Boardmaycharge use orservicefeesfor any suchservices and facilities provided, or may include the costs thereof in the Association's budget asa CommonExpenseandassessIt as part oftheBaseAssessment Ifprovided to allLots Byway of example,suchservicesandfacrhnes might include landscape maintenance, trash collection, pestcontrol service, cable television service,security, caretaker, transportation, fireprotection,utilities,recyclmg,any services required by Mancopa Countyorotherapphcablegovernmental authonues, and sinnlar services andfacihnes

Nothing In tlusSectionshallbeconstruedasarepresentationby Declarant orthe Associationasto what, Ifany, services shallbeprovided, In addition,theBoardshallbe permittedtomodifyorcancelexistingcontractsfor servicesm Itsdiscretion,unlessthe provision of suchservicesisotherwiserequired by theGovemmgDocuments Non-use of services providedtoallOwnersor Lots asaCommonExpenseshallnotexemptanyOwnerfromthe obhgatrontopayassessmentsforsuchservices

In anycontractsoragreements WIth tlurdpartiesforthe provision of services wrthin AnthemParkside,the ASSOCiatIon mayassigntothe service provider the nght tobill Owners directlyandtopursuealllegalorequitableremediesotherwiseavailabletothe Associationin the collection of suchbills Any chargebilleddirectlytoanOwner in accordance WIth sucha contractbetweentheAssociationandtheserviceprovidershallbeachargeand continuing hen in favoroftheserviceprovideragainsteachOwner's Lot, enforceablebythe service provider orthe AsSOCIatIon (aspertheagreementbetweentheAssociationandthe service provider) 10 the mannerprovidedfortheenforcement ofhensforassessments 10 ArticleVIII

7.9 VIew Imparrment

Declarant, the Associahon, or the Council make no guarantee or representation that any viewover and across the Lotsoranyopen space within Anthemwill. be preserved without impairment.. Declarant, theAssociation, and the Conncilshall not have the obligahon to relocate, prune, or thintreesor other landscaping exceptasset forth in Article V or as otherwise setforth lD a covenant or agreement binding the Assocsatton. The owner of open space areas shallhavethe right to add trees and other landscaping from timeto time subject to applicable law and the Governing Dccameats, If applicable. Any express or implied easements for VIew purposes or for the passage of lIght and air are hereby expresslydisclaimed.

7.10 RelatIonshIp WIthNeIghborhood AssocIatIons

TheAssociation shall have the power to veto any action takenor contemplated tobe takenbyanyNeighborhood Association which the Boardreasonably determines tobeadverseto the interests of theAssocianon or Its Members or inconsistent With theCommunity-Wide StandardTheAssociationalsoshall have thepowertorequirespecificactiontobetakenby any Neighborhood Assocranon in connection WIth rta obligations and responsibthties, such as requmng specificmamtenanceor repairs oraestheticchangestobeeffectuatedandrequmng that aproposedbudgetincludecertam items andthatexpenditures bemadetherefor

A Nerghborhcnd Association sball takeappropriate actionrequired by the Association in

a wntten notIce WIthin the reasonable time frame set by the Association in the nonce Ifthe Neighborhood Association fadsto comply, the Association shall havethenghttoeffect such action on behalfofthe Neighborhood AsSOCIatIon and levy BenefitedAssessments tocoverthe costs.aswellasanadmtmstratIve charge andsanctions

711 Election orCounell Board Members

As setforth In, and in accordance with, theCommunity Covenant, theBoardshall provideforthe electron ofone or morePersons toserveonthe COunCIl'S boardofdirectors.

Article VID Assceiation Finances

81 Budgetmg and Allocatmg CommonExpenses

TheAssociation IS authonzed hereby to levyBase Assessments equally agamstallLots subjectto assessmcot underSection86tofundtheCommonExpenses Atleast60daysbefore thebegmnmgofeachfiscalyear,theBoardshallprepareabudget of theestimatedCommon Expenses for thecorning year, mcludmg anycontnbunonstobemadetoa reserve fundpursuant to Section 83 Common Expenses shall include the ASSOCiation's contnbutions to the Council 111 accordance WIth the Commumty Covenant Thebudget alsoshall reflect the sources and estimated amounts offundstocoversuchexpenses.which may include anysurplus to be applied from pnor years,any Income expected from sources other than assessments levied against the Lots, andthe amount tobe generated through the levy of Base Assessments and Special

Assessments against the Lots, including Lots reasonably anticipated to become subject to

assessment dunng the fiscal year

The Board shall send a copy ofthefinal budget tothe Council and notice ofthe amount ofthe Base Assessment to be levied pursuant tosuch budget toeach Owner and tothe Council at least 30 days pnor tothe effective date of such budget Except as required for the exercise of approval nghts under Section 89, the budget shallnotbe subject to Owner approval andthere shall beno obhgation to send each Owner a copy ofthe budget or call a meeting forthe purpose ofconsrdenng the budget

Ifany proposed budget 15 disapproved under Section 89,or the Boardfailsforany reason to determme the budget for any year, then the budget most recently in effect shaIl continue In effect until anew budget is determmed.

TheBoardmay revise thebudgetand adjust theBaseAssessmentfrom tune totune

dunng theyear, subject to Section 89 and the notice requirements setforth above.

8 2 BudgetIng andAllocatmg NeIghborhood Expenses

The Association 15 authonzed hereby tolevy Neighborhood Assessments equally against all Lots In the Neighborhood which aresubjectto assessment under Section 86tofund Neighborhood Expenses, provided, Ifso specified In the applicable Supplemental Declaration or If so dtrected by pennon SIgned by a majonty of the Owners within the Nergbbcrhood, any portion ofthe assessment Intended to benefit particular Owners within a Neighborhood (e g _ for extenor mamtenance ona structure orfor mamtenance of landscepmg wrthm a cul-de-sac) shall beleviedoneach ofthe benefited Lots mpropornon tothebenefit received,

At least 60days before the begmmog of eachfiscalyear,the Board shall prepare a separate budget cavenng the estimated Neighborhood ExpensesforeachNeighborhoodon whose behalfNeighborhood Expenses areexpectedtobe Incurred durmg the COIDIng year Eachsuch budget shall Include any costs for eddttIonal servicesora hrgher level ofservices which the Owners In such Neighhorboodhave approved pursuant to SectIon 64(a) andany contnbutIon to

be made toa reserve fund pursuant toSection 83 The budget alsoshall reflect the sources and

estimated amounts offunds tocoversuch expenses, which mayInclude any surplus tobeapphed from pnoryears, any Income expected from sources other than assessments levied against the Lots, andtheamount required tobegenerated through the levy of Neighborhood and Special Assessments againstthe LotsIn suchNeighborhood.

TheBoard shall cause a copy ofthe Neighborhood budget and notice ofthe amount ofthe Neighborhood Assessment for the cornmg year tobe delivered to each Owner in the Neighborhood atleast 30dayspnortothe begmrung of the fiscal year Except as required under Section 89,budget shall notbesubject toOwner approval and there shall beno obhganon tocall ameeting for the purpose ofconsrdenng the budget

If theproposed budget for any Neighborhood 1S disapproved as permitted under Section 89, orIfthe Board fails for anyreason to deternune the budget forany year, then until such time

asa budget IS determmed, the budget in effectfortheimmediately preceding year shallcontinue

forthe current year

The Board may revisethebudgetforany Neighborhood andtheamount of any Nerghborhood Assessment from time to tune dunng the year, subject to Section 89 and the

noticerequirements setforth above

Allamountscollectedbythe Association as Neighborhood Assessments shall be held in trust and expended solelyforthe benefit of the Neighborhood for winch theywerecollected. Such amountsshallbe accounted forseparatelyfromtheAssociation's general fund.

8 3 Budgeting forReserves

The Board shall prepare and review penodically a reserve budget forthe Area of Common Responsibility andfor each Neighborhoodfor winch the Association maintains capital Itemsasa Neighborhood Expense, IfanySuchbudgetsshalltake into account the number and nature of replaceable assets,the expected. life of each asset, and theexpected repair or replacement cost IftheBoard elects,In theexercise ofIts businessJudgment, tofund reserves, It shallmclude in the Common Expense budgetadopted pursuant to Section 81orthe Neighborhood Expense bndgets adoptedpursuantto Section 82,as appropnate, a Capital contribution to fund reserves in anamount sufficient torneet theprojected needWIth respect both to amount and tuning by annual contnbunons overthe budget penod Solongas the Board exercises business Judgment ill deterrrumng the necessity of a reserve fund, and an adequate amount ofreserves, theamount ofthe reserve fund, Ifany. shallbeconsidered adequate.

The Board may adopt resolunons regardmg the expenditure of any reserve funds, mcludmg pohcies designatmg the nature of assets for which reserve funds maybe expended. Suchpohcres maydiffer forgeneral Association purposes and foreachNeighborhood. Solong asDeclarant owns anyproperty descnbed m Bxhibits "A" or"B," neither theAssociation nor the Board shalladopt, modify, limit, or expandsuch policies without Declarant's pnor wntten

consent

TheBoard mayenter mto agreements With Declarant, onnegotiated terms. under which Declarant maycbhgate Itselfto provide reserve funds asneeded ona "cash basis" 1I11Ieu of the

Association funding reserves onanaccrual basis

8 4 SpecIal Assessments

In addition to other authonzed assessments, the Association maylevy Special Assessments tocoverunbudgeted expenses orexpenses in excess ofthosebudgeted Any such Special Assessment may be levied against the entire membership, If such Special Assessment IS for Common Expenses, oragainst theLotswithm any Netghborhood If such Special Assessment IS for Neighborhood Expenses Except as otherwise specifically provided In this Declaration, any Special Assessment shall require the affirmative voteor wntten consent of Class "A" Members representmg at least two-thirds ofthe total votes allocated toLots which WIll besubject to such Special Assessment, and the affirmative vote or wntten consent of the Class "B"

Member, Ifsuchexists Special Assessments shall be payable msuchmanner and atsuchtimes asdetennmedbytheBoard,andmaybepayableminstallments extendingbeyondthefiscal year mwhichtheSpecialAssessmentis approved.

85. Benefited Assessments

The Association shallbavethepowertolevy Benefited AssessmentsagainstanyLotas follows

(a) tocoverthe costs, including overhead and admmistrative costs, of providing servicesto Lots upon request ofanOwner pursuant toany menu of special services whichmay be offered bytheAssociation ortheCouncil Benefited Assessments forspecial services maybe levied in advance ofthe provisionofthe requested service, and

(b) tocovercostsincurredmbnngmgtheLotintocompliancewiththe Governing

Documents orcosts mcurred asa consequence oftheconduct ofthe Owner oroccupants ofthe

Lot,their agents, contractors, employees, licensees, mvrtees, orguests; provided, theAssociation shall give theLot Owner pnor wntten nonce and an opportunIty fora heanng, m accordance with theBy-Laws,beforelevyinganyBenefitedAssessment underthis subsection (b).

The Association mayalsolevya Benefited Assessment agamst theLots within any Neighborhoodtoreimbursethe Associationforcostsincurredill bnngingtheNeighborhood into comphance WIth the provisions of the Govermng Documents, provided the Board gives pnor wnttennoticetothe Owners ofLotsmthe Neighborhood andanopportunityforsuchOwnersto beheard before levying anysuchassessment

TheCouncil,porsuanttotheCommunityCovenant, alsosballbeauthonzedtotakesuch corrective action to cure violations of the Govenung Documents ortobnngaLot into compliance with the Commumty-Wtde Standard If theCouncilundertakessuchaction,the Council IS authonzed toassesstheOwner forallcostsincurred.

86. Commencement ofObhganon. TIme ofPayment

The obhgatron to payassessments shall commence astoeachLotonthefirst dayofthe monthfollowing(a)themonthmwluchtheLot IS madesubjecttothis Declaration, or (b) the month In which the Board first detenmnes a budget and levies assessments pursuant to thIs Article, wluchever IS later However, dunngthe time that aLot IS ownedbya Builder for the purpose ofdevelopment and resale in Its ordmarycourse ofbusiness, suchLotshall be assessed only25%ofthefullBaseAssessment rateand25%ofanySpecialAssessmentor Neighborhood Assessment which would otherwise be payable dunng such penod.. The first annual Base Assessment and Neighborhood Assessment, If any, levied oneachLot shall be adjusted according to the nwnber of months remammg In the fiscal year atthetune assessments

commence ontheLot

Assessments shall bepaid In such manner and on such dates asthe Board mayestablish, TheBoard may require advance payment ofassessments atclosing ofthe transfer ofntle toaLot and Impose special requirements for Owners With a history ofdelmquentpayment Ifthe Board

so elects, assessments may bepard in quarterly or montbly installments Unless the Board otherwise provides, theBase Assessment andany Neignborhocd Assessment shall be dueand payable in advance onthe first day ofeachfiscal year Ifany Owner IS delinquent m paying any assessments orother chargesleviedonIus Lot, the Board may require the outstanding balance on all assessments tobepaid in full immediately

8 7 OblIgatIOn for Assessments

<a) Personal Obhganon Each Owner, by accepting adeador entering intoa

Recorded contract ofsalefor any Lot. 15 deemed to covenant and agree topay allassessments

authorized. in theGovermng Documents All assessments, together WIth interest (computed from Its due date atamaximum rate of18% perannum orsuch higher rate astheBoard mayestablish, subject tothe bmrtatrons of Anzona law), reasonable late charges as detenmned by Board resolution (as linuted bytheAct), costs, and reasonable attorneys' fees, sball bethe personal obhgatIon ofeach Owner anda hen upon each Lot until paid in full Upon a transfer oftitletoa Lot,the grantee shallbe jointly and severally liableforany assessments and other charges dueat thetime ofconveyance

The Board's failure to fix. assessment amounts orrates orto deliver ormalleachOwner

anassessment nonceshall notbe deemed a waiver,modification, ora release ofanyOwner from the obhganon to pay assessments In such event, each Owner shall continue topayBase Assessments and Neighborhood Assessments onthesame basis asdunngthe last year forwlnch anassessment wasmade, Ifany, until anewassessment IS levied, atwinch timetheAssociation mayretroacnvelyassess any shortfalls incollections

No Owner may exempt himself from habihty for assessments by Don-use of Common Area, abandomnent ofIus Lot, non-use of facrhties or property operated or maintained by the Council, oranyother means Theobligation topayassessments IS a separate and mdependent covenant onthepart ofeach Owner No dimmuttcn orabatement ofassessments orset-offshall be claimed orallowed forany alleged failure oftheAsSOCIatIon orBoard totakesomeaction or perform somefunction reqwred ofIt, orformconvemence ordiscomfort arising from themaking ofrepairs orunprovements, orfrom any other action rttakes.

Upon wntten request from an Owner. Mortgagee, or other Person designated bythe Owner, the AsSOCIatIon shall funush a statement settmg forth the amount of any unpaid assessment agamst such Owner's LotThestatement shall be bmdmg uponthe Assccianou,the Board, and the Owners tothe extent mandated by Arizona law If the AsSOCIatIon fails to provide such statement within 15 days of Its receipt of a wntten request, any hen for unpaid assessments then due shall be exnnguished tothe extent mandated byAnzonalaw The ASSOCiatIOn mayrequiretheadvance payment ofa reasonable processing feefortheIssuance of

suchstatement

(b) Declaranrs Obhgalion

(1) Pavrnent of the "Shortage" Dunngthe Class "B" Control Period, and

with respect solelyto Assocranon expenses (l e, expenses which are not Anthem communityWIde expenses Incurred bythe Council), Declarant shall notbe obligated topay assessments on

its unsold Lotsbut,instead,shallbe obhgated topaythe"shortage"(, e , operating deficit)for eachfiscal year A "shortage" shall exist If Income andRevenues(as defined below)fora particular fiscal year arelessthanExpendItures(as defined below) incurred fortheSamefiscal year Income and Revenues and Expenditures aretobe calculated using the accrual basis of

accounting

(A) Income and Revenues are.theamount of all income and revenue ofany kind earoedbythe Associanon dunng the subject fiscalyear, including, butnot limitedto, assessments, usefees, subsidies (If any) provided by Declarant,and income fromall other sources Forpurposes ofthts Section, assessments foreachLotare deemed earned on the annual anniversarydateofthecommencement ofassessments withrespect to suchLot

(B) Expenditures are the amount of all actual operating expenses incurred, or obhgated for, by the Association dunng thesubjectfiscalyear, includingwithout lnmtanon (1)any reserve contnbunons for such year,and(2)any budgeted or approved nonbudgeted capital assets acquired dunng thefiscalyear,butexcluding(1)all non-cash expenses suchas depreciation or amortization, (2) expenditures foror purchase of non-budgeted, nonapproved Items,(3)all expenditures madefrom reserve funds,and(4)any amounts levied bythe Ccuncilrelating to uou-Assocranon expenses Forpurposes ofthis paragraph, "approved" shalI mean pnorwnttenapproval ofDeclarant

(C) Any shortage ma particular fiscalyear IS to be offset by any surplus fromapreviousfiscalyearA surplus IS achieved when, usmg an accru.aJ. basts of accounting, Incomeand Revenues fora particular:fiscal year exceedBxpendrtures for the same fiscal year

Payment of the shortage shall exempt Declarant from payment of Neighborhood or Benefited Assessments. and any portion of Base and Special Assessments not attnbutable to Council operations. Declarant's obhgancn foranyBase and Special Assessments attnbutable solely to Council operanons shallbe governed by the Community Covenant

(h) OptIon to Pay "Shortage" Following expiration or termmation of the Class "B'' Control Penod, Declarant may annually electeitherto pay the assessments descnbed in subsection (1) aboveoneach ofItS unsold Lots orto pay the shortage for such fiscalyear The

Declarant's election may be made separately WIth respect to Base Assessments and

Neighborhood Assessments IfDeclarantelectstopay assessments oneachLot and., after such payment, a shortage exists, Declarant may. but shall Dot be obligated to,paysuch shortage. UnlessDeclarant otherwise notifies the Board in writing atleast 60 daysbefore thebeginning of each fiscalyear, Declarant shallbedeemed tohaveelected toconnnuep3YJng on thesamebasis as dunng theimmediately preceding fiscal year

(Ill) SubsldIes/"I" Kmd" ContnbUtion The Association IS specifically authonzed to enter Into subsidy contracts or contracts for "inkmd" contnbutlon of services, matenals, oracombmanon ofservices and matenals WIth Declarant orother entities for payment

of Common Expenses Declarant's payment of assessments may be reduced or abated bythe

agreed value of anysuch services or materials provided by Declarant, in accordance with any such contract oragreement With the Assocrenon.

8 8 Lien for Assessments

Subject to any lumtanons imposed by Anzona law, all assessments and other charges of the Associationauthonzed In tlns Article orelsewhere in tlns Declaration shallconstitute a hen against theLot agamst which they are levied from thetunesuchassessments orcharges become due unnl paid The lien shall also secure payment of interest (subject to the lumtalions of Anzona law),late charges (as limited hythe Act), and costs ofcollection (mcludmg attorneys' fees, lien feesand admlDlstralIve costs) Such lien shail be supenor to all other liens, except any hen of the Council, thelienor charge of any Recorded first Mortgage (meaning any Recorded Mortgage WIth first pnonty over other Mortgages) made in good fiuth and for value, and those hens deemed by Arizona law to be supenor The lien created by tins ArtIcle shall have prionty overany hen forassessments asserted byanyother CODlIDUDlty orproperty owners association, including, Without hmrtauon, anyNeighborhood Assocranon, TheAssociationmay enforce such hen, when any assessment or other charge is dehnquent, by SUIt, judgment, and foreclosure; provided, Ifenforcement proceedings arenotinstituted wtthmthree years afterthefull amount of

the assessment or other charge becomes due,thehen (but notthe personal oblIgation of the

subject Owner) sball be deemed exunguished,

The Associationmayassign Its bennghts to third parties, mcludmg serviceprovidersas described in Section78

The Association maybidfortheLotatthe foreclosure sale and acquire, hold,lease, mortgage, and conveythe Lot 'Wlnle a Lot IS ownedbythe ASSOCIation following foreclosure. (a)no nght tovole shall be exercised on Its behalf, (b) no assessment shall be levied onIt;and (c)each other Lotshallbe charged. In addition to its usual assessment, ItS pro rata share ofthe assessment that wouldhavebeen charged suchLothadIt notbeenacquired bytheAssocraucn, TheAssociation maysueforunpaid assessments and other charges authorized hereunder WIthout foreclosing orWaIvwg thehensecunngthe same

Saleor transfer of anyLotshallnotaffectthe assessment hen orrehevesuchLot from thehenforany subsequent assessments However, saleor transfer of anyLot pursuant to

foreclosure of thefirst Mortgage shall extinguish the lien astoany mstallments of such

assessments duepnortotheforeclosure Thesubsequent Owner tothe foreclosed Lotshallnot

be personally liablefor assessments onsuchLotduepnortosuch acquisition of title Such unpaid assessments shallbe deemed to be Common Expenses collectible from Owners of all Lots subject toassessment under Section86, including such acquirer, Its successorsand assigns

8 9 LimitatIOn onIncreases ofAssessments

Notwithstanding any provtsion tothe contrary, and except for assessment increases necessary for emergency sttuatrons, the Board maynot impose aBaseAssessmentor

Neighborhood Assessment that IS more than 20% greater than such assessments for the

unmedtately precedmg fiscal year without theapproval ofa majority oftheClass"A" Members subject totheapplicable assessment Approval may beindicated byvoteorwnttenconsent

Anemergency situation IS anyone ofthefollowing

(a) an extraordinary expense reqwred byan orderofacourt,

(b) an extracrdmary expense necessary to repair or rnamtain Anthem Parkside orany part of them forwinchthe Association 15 responsible where a threat to personal safetyon Anthem Parkside IS discovered, or

(c) an extraordinary expense necessary to repair or maintain Anthem Parkside orany part of them for which the Association 15 responsible which could not have been reasonably foreseen by the Board m preparmg and drstnbuung thepro forma budget pursuant to Section 8 I. However. pnortothe imposition or collection of such an assessment, the Board shall pass a resolution contammg wnttenfindmgs astothenecessity ofthe extraordinary expense involved

and whythe expense was notor could nothavebeen reasonably foreseen m the budgeting

process Notice of such resolution shall be provided totheMembers along WIth the notice of

suchassessment

The Association's capital expenditures for any fiscal year. other than for repair or

replacement, maynotexceed20%ofthe budgeted Common Expenses for the current fiscal year

WIthout theapproval of a majonty of the Class "A" Members Approval maybe mdicated by

voteorwnttenconsent.

810 Exempt PropertY

The followmg property shall be exempt from payment of Base Assessments, Neighborhood Assessments. and Special Assessments-

(a) all CommonArea andsuchporlIons ofthe Area ofCommon Responsibihty winch

are notLots.

(b) property owned or maintained bythe Council andany other property not subject tothisDeclaration,

(c) utrhty,and any property dedicated toand accepted byany governmental authonty or public

(d} property ownedbyany Neighborhood ASSOCiatIon for the common use and enjoyment of ItS members, orowned by the members ofaNeighborhood Association as tenantsin-common

In addition, both Declarant and the AsSOCIatIon shall have the nght,butnot the

obhgatron, to grant exemptions to certain Persons qualifying for tax exempt status under

SectionSOl(c) oftheInternalRevenueCodesolongassuchPersonsownproperty subjectto tins DeclarationforpurposeslistedInSectionSOl(c)

811 AssIgnment ofRights andAuthority tothe CounCIl

Inaneffort tomnumizeadmmistrauve costs and create anefficient assessment collection process, and subject tothe lumted revocation nghts set forth below. the Association hereby

assigns to the Council allofItsnghts and authonty to invoice and collect assessments provided for In tins ArticleVIII As such,the Association shallprovidetheCouncilwith notice of all assessments leviedwitlnn the same tune penod as required for nonce to Owners Such assignmentsball Include allcollectionandenforcement nghts, includingliennghts,butsballnot Include theright to prepare and approve theAssocranon's budget Pursuant tosuch assignment, theCouncilshall collectallassessments onbehalfoftheAsSOCIatIon and shall allocate collected funds between Conned Expenses and AsSOCIatIon Common Expenses Funds allocable to Association Common Expenses shall be chsbursed tothe Association by the Council subject to

any contrary agreements between theCouncil and theAssociation pertaining totheuse of such

funds

TheAssociation's assignment of mvoice and collectionnghtsand authonty totheCouncil maybe revoked, Inwholeor Inpart,only with the pnor wnttenconsentoftheCouncil,and,for solongas Declarant ownsanypropertydescnbedon Exhibits "A"or "B,"DeclarantFollowing any partial or complete revocation, such nghts and authonty maybe reassigned, m the Association's discretion, manysucceeding fiscal year

Unless otberwsse specIliedbythe Council, payments received sballbeapplied,as between Council Expenses and AsSOCIatIon Common Expenses, to the oldest outstanding balance If no outstanding balance exists as between either Council Expenses or Common Expenses, fonds sballbe applied first to Council Expenses In noeventshallthe Council be reqwred to allocate assessments received In amanner specifically requested by an Owner orthe Association

ArticleIX Expensroa ofthe Community

9 I ExpanSIon byDeclarant

Declarant mayfrom tune to tune subject to the provisionsof thisDeclarationallor any portion of the property descnbed In Exhibit "B'' by Recording a Supplemental Declaration descnbmgtheaddmonalpropertytobe subjected A Supplemental Declaration Recorded pursuant to tlus Section shall not require the consent of any Person except the owner of such property,Ifotherthan Declarant

Declarant's nghtto expand the community pursuant to this Section shall expire whenall property descnbed In Exhibit "B" has beensubjected to this Declaration or 40 years after this Declaration IS Recorded. whichever IS earlier Declarant may transfer orassign this nghtto any Person who IS the developer ofat least aportion of the real property descnbed m Exhrbtts "A" or