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PART TWO: CREATION AND MAINTENANCE OF COMMUNITY STANDARDS
 
The standards for use and conduct, maintenance, and architecture within the community are what give the community its identity and make it a place that people want to call "home." This Declaration establishes procedures for regulation as a dynamic process which allows the community standards to evolve as the Properties change and grow over time.
 
Article III Use and Conduct
3.1. Framework for Regulation. The Governing Documents establish, as part of the general plan of development for the Properties, a framework of affirmative and negative covenants, easements and restrictions which govern the Properties. Within that framework, the Board and the Members must have the ability to respond to unforeseen problems and changes in circumstances, conditions, needs, desires, trends, and technology which inevitably will affect the Properties, its Owners, and residents. Toward that end, this Article establishes procedures for modifying and expanding the initial Use Restrictions set forth in Exhibit "B."
 
3.2. Authority to Enact Use Restrictions.
  1. Subject to the terms of the Permits, this Article, and the Board's duty to exercise business judgment and reasonableness on behalf of the Association and its Members, the Board may adopt, modify, cancel, limit, create exceptions to, or expand the Use Restrictions. The Board shall conspicuously publish notice concerning any such proposed action at least five business days prior to the Board meeting at which such action is to be considered. Members shall have a reasonable opportunity to be heard at a Board meeting prior to such action being taken.

    Such action shall become effective, after compliance with the distribution requirements below, unless disapproved at a meeting by Members representing more than 50% of the total Class "A" votes in the Association and by the Class "B" Members, if any. The Board shall have no obligation to call a meeting of the Members to consider disapproval except upon receipt of a petition as required for special meetings in the By-Laws. Upon receipt of such petition prior to the effective date of any Board action under this Section 3.2(a), the proposed action shall not become effective until after such meeting is held, and then subject to the outcome of such meeting.

    Alternatively, Members representing more than 50% of the total Class "A" votes in the Association at an Association meeting duly called for such purpose, may vote to adopt Use Restrictions which modify, cancel, limit, create exceptions to, or expand the Use Restrictions then in effect. Such action shall require approval of the Class "B" Members, if any.

    Prior to any action taken under this Section 3.2(a) becoming effective, the Board shall send a copy of the new Use Restriction or explanation of any changes to the Use Restrictions to each Owner. The effective date shall be at least 30 days following distribution to Owners. The Association shall provide, without cost, a copy of the Use Restrictions then in effect to any requesting Member or Mortgagee.

    Nothing in this Article shall authorize the Board or the Members to modify, repeal, or expand the Residential Design Guidelines or other provisions of this Declaration. In the event of a conflict between the Residential Design Guidelines and the Use Restrictions, the Residential Design Guidelines shall control.

  2. The procedures required under this Section 3.2 shall not apply to the enactment and enforcement of Rules and Regulations (e.g., administrative issues, regulations governing the use of the Common Area, etc.) unless the Board chooses in its discretion to submit to such procedures. Examples of such administrative Rules and Regulations shall include, but not be limited to, hours of operation of a recreational facility, use of private trails, and the method of allocating or reserving use of a facility (if permitted) by particular individuals at particular times. The Board shall exercise business judgment in the enactment, amendment, and enforcement of such administrative Rules and Regulations.
3.3. Owners' Acknowledgment and Notice to Purchasers. All Owners are given notice that use of their Units and the Common Area is limited by the Use Restrictions as they may be amended, expanded, and otherwise modified hereunder. Each Owner, by acceptance of a deed, acknowledges and agrees that the use and enjoyment and marketability of his or her Unit can be affected by this provision and that the Use Restrictions may change from time to time. All purchasers of Units are on notice that changes may have been adopted by the Association. Copies of the current Use Restrictions may be obtained from the Association.
 
3.4. Protection of Owners and Others. Except as may be contained in this Declaration either initially or by amendment or in the initial Use Restrictions set forth in Exhibit "B," all Use Restrictions shall comply with the following provisions:
  1. Similar Treatment. Similarly situated Owners shall be treated similarly.

  2. Displays. The rights of Owners to display religious and holiday signs, symbols, and decorations inside structures on their Units of the kinds normally displayed in dwellings located in single-family residential neighborhoods shall not be abridged, except that such shall be consistent with the Local Jurisdiction's Ordinances and the Association may adopt time, place, and manner restrictions with respect to any displays (including those outside of a dwelling) visible from outside the dwelling. No Use Restrictions shall regulate the content of political signs; however, rules may regulate the time, place, and manner of posting such signs (including design criteria) and the Local Jurisdiction's Ordinances shall apply.

  3. Household Composition. No Use Restriction shall interfere with the freedom of Owners to determine the composition of their households, except that the Association shall have the power to require that all occupants be members of a single housekeeping unit, to limit rental of Units, and to limit the total number of occupants permitted in each Unit on the basis of the size and facilities of the Unit, its fair use of the Common Area, and on the basis of compliance with applicable the Local Jurisdiction's Ordinances. Use Restrictions may be adopted by the Association to limit or prohibit the occupancy of Units by persons who have been convicted of a crime for which continued supervision after conviction is imposed upon the proposed occupant.

  4. Activities Within Dwellings. No Use Restriction shall interfere with the activities carried on within the confines of dwellings, except that the Association may prohibit activities not normally associated with property restricted to residential use, it may restrict rental of Units, and it may restrict or prohibit any activities that create monetary costs for the Association or other Owners, that create a danger to the health or safety of occupants of other Units, that generate excessive noise or traffic, that create unsightly conditions visible outside the dwelling, that create an unreasonable source of annoyance, or that involve illegal conduct.

  5. Household Occupations. No Use Restriction may interfere with the rights of an Owner or occupant residing in a Unit to conduct business activities within the Unit so long as (i) the existence or operation of the business activity is not apparent or detectable by sight, sound or smell from outside the Unit; (ii) the business activity is consistent with the residential character of the Properties and does not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of other residents of the Properties, as may be determined in the Board's sole discretion; (iii) any goods, materials or supplies used in connection with any trade, service or business, wherever the same may be conducted, be kept or stored inside any building on any Unit and that they not be visible from the exterior of the home and (iv) it is as otherwise allowed by the Permits and applicable law. Nothing in this Section shall permit (1) the use of a Unit for a purpose which violates law, regulations, rules or applicable zoning codes, or (2) activities that cause a significant increase in neighborhood traffic, or (3) modification of the exterior of the Unit. The Board may, from time to time, promulgate rules restricting the activities located on the Properties pursuant to the authority granted to the Association under this Declaration, the Bylaws, and RCW Chapter 64.38.

  6. Allocation of Burdens and Benefits. No Use Restriction shall alter the allocation of financial burdens among the various Units or rights to use the Common Area to the detriment of any Owner over that Owner's objection expressed in writing to the Association. Nothing in this provision shall prevent the Association from changing the Common Area available, from adopting generally applicable Rules and Regulations for use of Common Area, or from denying use privileges to those who abuse the Common Area or violate the Governing Documents. This provision does not affect the right to increase the amount of assessments as provided in Article VIII.

  7. Alienation. The Association may not impose any fee on the transfer of any Unit greater than an amount reasonably based on the costs to the Association of administering that transfer. The Association may regulate the leasing or rental of Units.

  8. Abridging Existing Rights. No Use Restriction shall require an Owner to dispose of personal property that was in or on a Unit prior to the adoption of such Use Restriction and which was in compliance with all Use Restrictions previously in force. This dispensation shall apply only for the duration of such Owner's ownership of such personal property, and this right shall not run with title to any Unit.

  9. Reasonable Rights To Develop. No Use Restriction, Rule or Regulation, or action by the Association or Board shall unreasonably impede Declarant's right to develop the Properties or other portions of the community.
The limitations in subsections (a) through (h) of this Section shall only limit the authority exercised under Section 3.2; they shall not apply to amendments to this Declaration adopted in accordance with Article XVIII.