WOHA CC&R's

Article I: Recitals

1.1 Original Declaration

The developer/declarant of the Properties recorded the Declaration governing the Properties on August 18, 1980 at Clerk’s reception number 8040959 Reel 1089R, Lane County, Oregon Official Records (Declaration).

1.2 First Amendment of Declaration

The developer/declarant of the Properties recorded a First Amendment to the Declaration on October 31, 1980, Clerk’s Reception Number 8055593 Reel 1102 R, Lane County, Oregon Official Records (First Amendment).

1.3 The Properties

The properties which as the subject of the Declaration and amendments thereto, including this Third Amendment, are describes as follows: 

Wild Oaks P.U.D., as replatted and recorded in File 73, Slide 404, Lane County, Oregon Plat Records, in Lane County, Oregon.

1.4 Amendment Provisions 

Article 13 GENERAL PROVISIONS, Sections 13.5 of the Original Declaration as amended by the First Amendment, provides that this Declaration may be amended by an affirmative vote of not less that seventy-five (75%) of Lot Owners.  Voting rights are established in Section 3.2 and Section 3.2.1

1.5 Approval of Third Amendment

By their signatures affixed hereto the President and Secretary of Wild Oaks Homeowners Association certify that not less than seventy-five (75%) of the Lot Owners of the Properties duly amend the Declaration in accordance with its provisions and with State law. This Third Amendment will be effective when recorded in the official Records of Lane County, Oregon.

1.6 Purpose

Purposes of this Third Amendment include providing continued exterior maintenance of the Building Structures constructed upon the Property, maintenance and repair of the Common Area and Landscaped Areas, management of Wild Oaks Homeowners Association, and to set forth other terms and conditions governing the use and enjoyment of the Property.

Article III: The Association

3.1 Membership

During the entire period of any Owner’s ownership of one or more Building Lots, such Owner shall be a member of the Association.  Such membership shall commence, exist, and continue simply by virtue of such ownership, shall expire automatically upon termination of such ownership, and need not be confirmed or evidenced by any certificate or acceptance of membership.

3.2 Voting Rights

Voting Rights within the Association shall be allocated as follows:

                3.2.1 Building Lots

Building Lots shall be allocated one (1) vote per Building.

3.3 Powers and Obligations

The Association shall have, exercise and perform all of the powers, duties and obligations

(a) granted to the Association by this Declaration

(b) of a non-profit corporation pursuant to the Oregon Nonprofit Corporations Act and a homeowners’ association of a planned community pursuant to the Oregon Planned Community Act, as either or both may be amended from time to time and,

(c) otherwise necessary or desirable for the purpose of carrying out the functions of the Association, pursuant to this Declaration or otherwise promoting the general benefit of the Owners within the Property.

3.4 Liability

Neither the Association nor any officer or member of the Board shall be liable to any Owner for any damage, loss, or prejudice suffered or claimed on account of any action or failure to act by the Association or any of its officers or any member of the Board, including acts or omissions constituting negligence which arise from the performance duties, responsibilities, or rights pursuant to this Third Amendment.  Nothing in this Section 3.4, however, shall be construed to limit or relieve the Association, its Officers, and it Board Members from liability for acts or omissions constituting gross negligence or willful misconduct.

3.5 Association’s Rules and Regulations

The Association from time to time, may adopt, modify, or revoke such rules and regulations governing the conduct of persons and the operation and use of Building Lots and the Common Areas, Landscaped Areas, as it may deem necessary or appropriate in order to assure the peaceful and orderly use and enjoyment of the Property.  Upon adoption, a copy of the rules and regulations and a copy of each amendment, modification, or revocation thereof shall be delivered by the Board promptly to each Owner and shall be binding upon all Owners and occupants of all Building Lots upon the date of delivery.  The method of adoption of such rules shall be provided in the Bylaws.

3.6 Special Duties of the Association

Without limiting the generality of the general powers and duties of the Association set forth in Article III, the Association shall have the power and obligation to conduct and perform the following duties, the costs of which shall be borne as provided in Article IV.

3.6.1 Maintenance of Building Exteriors, Common Areas, and Landscaped Areas. 

Maintenance obligations concerning Building Exteriors, Common Area, Landscaped Areas are allocated between the Association and the Owners as described in this section.  The Respective duties of the Association and the Owners may be reallocated by proper amendment to this Declaration.

3.6.1.1 By the Association.

The Association shall be responsible for 1) maintaining and repairing the exteriors of all Building Structures and the Common Areas and facilities, including 1) water supply lines starting from the EWEB supply valve that terminates at the boundary of the Association property up to, and including, the valve or meter (whichever is further) that serves individual Owner units, 2) perimeter fencing along the common boundaries with adjacent properties 3) fencing around the pool and and recycle/garbage areas, and 4) all Common Landscaped Areas. Maintenance of the exteriors of Building Structures shall include:

• • • • painting, maintaining, repairing, and replacing all exterior surfaces, including roofs, fences, and gates, (but excluding the maintenance, repair, and replacement of garage and other exterior doors);

      • maintaining, repairing, and replacing exterior lighting fixtures, rain gutters and downspouts;

      • maintaining, repairing and replacing foundation systems (including, without limitation, foundation footings, stem walls, piers and posts), and 

      • maintaining, repairing and replacing framing systems (including, without limitation, exterior and interior walls, roof rafters and trusses, wall and roof sheathing, floor joists, and trusses).

      • maintaining, repairing and replacing trees, shrubs, and bushes (in a neat, clean and attractive condition), and

      • irrigation systems, streets and sidewalks.

Decisions as to the nature and extent of maintenance that is desirable or required for a particular Building Structure, and the timing of such maintenance, shall be solely within the discretion of the Board of Directors.

3.6.1.2 By the Owners

The maintenance responsibilities of the Association described in Section 3.6.1.1, specifically do not include the following, which are the sole responsibility of the Owners of the Building Lots and Building Structures: 1) Repair and replacement of the interiors of the dwelling units within those Building Structures including, without limitation:

• • • • electrical wiring and fixtures, 

      • water lines to and from the valves and/or meters serving the individual Owner units or units that share such secondary water lines,

      • sewage disposal

      • repairing, replacing, and restoring or cleaning glass and screen,

      • landscaping and other improvements (including, without limitation, interior fencing and screening, wood decks and concrete patios) located within Outdoor Living Areas,

      • exterior items of hardware not specifically described in Section 3.6.1.1 (including repairing and replacing garage doors, whether singularly or jointly owned, screen doors, and any other exterior doors),

      • exterior window casements, sashes, and frames,

      • masonry (including, without limitation, fireplace chimneys and veneer),

      • insulation, and

      • air-conditioning and heating equipment and devices.

In any instance in which there is damage to the Lot or Structure that is not directly attributed to Homeowner negligence, neglect, or other willful act or omission, the Homeowner’s Association Insurance Policy will supplement, but not be a substitute for, the coverage provided by the policy of the individual Owner.  For each claim, the Owner must pay the full deductible, or that portion of the deductible established each year by the Board.

The Owners of the Building Lots and Building Structures shall also be responsible for maintaining, repairing and replacing the interiors of the dwelling units within those Building Structures including, without limitation:

• • • • maintaining, repairing and replacing electrical wiring and fixtures,

      • water plumbing to and from the street valves and/or junctions serving the individual units or units that share such secondary water lines,

      • water heaters,

      • all fixtures and appliances (whether built-in or free standing),

      • interior fire protection systems, and

      • all amenities and hardware located within the interiors of a Building Structure.

3.6.2 Insurance

3.6.2.1 By the Association

The Association shall obtain and maintain in effect, from one or more insurance companies authorized to do business in the State of Oregon, public liability and property damage insurance covering all Common Areas in such amounts and in such forms as the Board deems sufficient to provide adequate coverage against bodily injury, including deaths, of persons and property damage, whether caused by negligence of the Association or otherwise.  However, the total amount of such policy (ies) shall not be for an amount of less than $1,000,000.00 per person, per occurrence and such policy (ies) shall provide that the coverage thereunder cannot be canceled or substantially modified without at least thirty (30) days written notice to the Association.  Additionally, the Association shall obtain and maintain in effect, from such companies, fire and extended coverage casualty insurance (including coverage for damage resulting from vandalism and malicious mischief and damage from earthquake) with respect to each Building Structure and Common Area (including any insurable Improvements thereon), in an amount equal to 100% of the replacement cost thereof.  The casualty coverage may be obtained on a “blanket” basis.  The Association may obtain such other and further policies of insurance, as is deems advisable.  The casualty insurance to be obtained by the Association pursuant to this Section 3.6.2.1 shall include the following terms, if these are reasonable available, as determined by the Board:

(a) a waiver of subrogation by the insurer as to any claims against the Board, any Owner, or any guest of the Owner,

(b) a waiver by the insurer of its right to repair and reconstruct instead of paying cash,

(c) a provision that no policy be canceled, invalidated, or suspended by any action of an Owner,

(d) a provision that no policy be canceled, invalidated, or suspended because of the conduct of any director, officer, or employee of the Association unless the insurer gives the Association a reasonable time to make the corrections, and

(e) a provision that any “other insurance” clause in any policy shall exclude from it’s coverage all owner’s policies.

3.6.2.2 Officers and Directors

The Association may, if the Board so decides, purchase liability insurance for Officers and Directors of the Association providing coverage for the Association, Board Members, and Officer, including coverage for the cost of defending suits alleging that the Board Member or Officer filed to perform their required duties properly, and for any liability resulting from such claims.

3.6.2.3  By the Owners  

Each Owner of a Building Lot is encouraged to obtain and maintain in effect, from one or more insurance companies authorized to do business in the State of Oregon, public liability and property damage insurance with respect to their Building Lot.  Additionally, each Owner is encouraged to obtain and maintain in effect from such companies fire and extended coverage (including coverage for damage resulting from vandalism and malicious mischief) with respect to all insurable Improvement located on such Building Lot.  Each Owner shall also be responsible for obtaining fire and extended coverage casualty insurance with respect to that Owner’s personal property.  No Owner shall obtain any of the insurance coverages described in Section 3.6.2.1, nor shall any insurance coverage obtained by an Owner (or such Owner’s mortgagee) be brought into contribution with insurance obtained by the Association.

Article V: Architectural Review

5.1 Architectural Review

No Improvement shall be commenced, erected, placed, altered, or maintained on any Building Lot, nor any Outdoor Living Area, by an Owner, until the design plans and specification showing the nature, shape, heights, materials, colors, and proposed location of the Improvement have been submitted to and approved in writing by the Board.  It is the intent and purpose of this Third Amendment to achieve a high standard of quality workmanship and materials and to assure harmony of external design with existing Improvements and location with respect to topography and finished grade elevations.

5.2 Procedure

In all cases that require such Architectural approval or consent pursuant to this Third Amendment, the provisions of this Article V shall apply.  The procedure and specific requirements for such Board approval or consent may be set forth in Design Guidelines adopted from time to time by the Board.  The Board may charge a reasonable fee to cover the cost of processing an application for its approval.

5.3 Decision

The Board shall render its decision on an application for approval on the design of an Improvement or any other proposal submitted to it for approval or consent, within fifteen (15) business days after it has received a complete, written application therefore.  A complete application shall specify the approval or consent requested and be accompanied by all material reasonably required or desired by the Board of Directors to make an informed decision of such application.  If the Board of Directors fails to render approval or disapproval of such application within thirty (30) business days after the Board of Directors has received a complete application, or if no suit to enforce the terms of this Third Amendment has been commenced within one year after completion of construction of the Improvement, approval will not be required and the related provisions of this Third Amendment shall be deemed to have been fully complied with.

5.4 Discretion

The Board may, at its sole discretion, withhold consent to any proposed Improvement if the Board finds the proposed Improvement would be inappropriate for the particular Building Lot and/or Landscaped Area or incompatible with the design standards that the Board intends for the Property.  Consideration of setting, shape, size, color, design, height, solar access, impairment of the view from other Building Lots within the Property, effect on the enjoyment of other Building Lots or the Common Area, disturbance of existing terrain and vegetation, and any other factors the Board reasonably believes to be relevant may be taken into account by the Board in determining whether or not to approve or condition its approval of any proposed Improvement.

5.5 Majority Action

In matters concerning this Article V of this Third Amendment, the majority of the Board will render its decision only by written instrument setting forth the action taken and which is signed by the members consenting thereto.

5.6 Liability

The scope of the Board’s review is not intended to and shall not include any review or analysis of structural, geophysical, engineering, nor other similar considerations.  The Board shall not be liable to any Owner, occupant, builder, or developer for any damage, loss or prejudice suffered or claimed on account of any action or failure to act by the Board.

5.7 Non-Waiver 

Consent by the Board to any matter proposed to it or within its jurisdiction concerning this Article V of this Third Amendment shall not be deemed to constitute a precedent or waiver modifying its right to withhold approval in its sole discretion as to any similar matter thereafter proposed or submitted to it for consent.

5.8 Appeal

Any Owner adversely affected by an action of the Board under this Article V of this Third Amendment may appeal such action to the Board.  Appeals shall be made in writing within ten (10) working days after the Board’s action and shall contain specific objections to mitigating circumstances justifying the appeal.  A final, conclusive decision shall be made by the Board within fifteen (15) business days after receipt of the written appeal and objections.

5.9 Effective Period of Consent

The Board’s consent to any proposed Improvement shall automatically expire and be revoked one year after issuance unless construction of the work had been commenced or the Owner has applied for and received an extension of time from Board before than time.

5.10 Estoppel Certificate

Within fifteen (15) business days after a written request is delivered to the Board by an Owner, and upon payment to the Board of a reasonable fee, if any, fixed by the Board to cover costs, the Board shall provide that Owner with an estoppel certificate executed by a member of the Board and acknowledged, certifying with respect to any Building Lot owned by the Owner, that as of the date thereof, either: (a) all exterior Improvements made or done upon or within such Building Lot and/or Landscaped Area by the Owner comply with this Third Amendment or (b) such Improvements do not so comply.  If the estoppel certificate states that the exterior Improvements do not comply, such certificate shall also identify the non-complying exterior Improvements and set forth with particularity the nature of such noncompliance.  Any purchaser from the Owner and any mortgagee or other encumbrancer, shall be entitled to rely on such certificate with respect to the matters set forth therein.

5.11 City of Eugene Disclaimer Statement

This Third Amendment constitutes a private agreement among the owners of Wild Oaks, P.U.D., and will not be enforced by the City of Eugene.  This Declaration has not been approved by the City and does not restrict the City’s authority to adopt or amend its development regulations.  There may be conflicting requirements between this Declaration and the City’s regulations.  The City will limit its review of a development application and the issuance of permits to the requirements of its regulation and any condition of approval.  It is the duty of every person engaged in development within Wild Oaks, P.U.D. to know the requirement of this Declaration.  In the event there is a conflict between a City regulation and this Declaration, any question regarding this Declaration shall be directed to the Board.  The City will not be liable for any approvals or permits which are granted in compliance with City regulation but which are not in compliance with these covenants.

Article VII: Additional Restrictions and Duties

7.1 Structures Permitted

Except to the extent expressly provided or contemplated in this Third Amendment, no Improvements shall be erected or permitted to remain on any Building Lot except Improvements designated for residential use.

7.2 Residential Use

Building Lots shall be used solely for residential purposes.  Except with the consent of the Board and as allowed by applicable ordinance, agreements, or land use approvals, no trade, craft, business, profession, commercial, or similar activity of any kind shall be conducted on any Building Lot, nor shall any goods, equipment, vehicles, material, or supplies used in connection with any trade, service, or business be kept or stored on any Building Lot.  Subject to City of Eugene ordinances and regulations, nothing in this paragraph shall be deemed to prohibit:

(a) activities relating to the rental or sale of Building Structures, except as otherwise restricted herein regarding rental or lease Building Structures,

(b) the right of any contractor or homebuilder to repair or construct Building Structures on any building Lot, or to store construction materials and equipment on such Building Lots in the normal course of construction, and

(c) the right of an Owner to maintain his or her professional library, keep his or her personal business or professional records or accounts, handle his or her personal business or professional telephone calls, or confer with business or professional associates, clients, or customers in his or her Building Structure.

The Board shall not approve commercial activities otherwise prohibited by this Section unless the Board determines that only normal residential activities would be observable outside of the Building Structure and that the proposed use would not be in violation of applicable ordinance and regulations.

7.3 Offensive or Unlawful Activities

No noxious or offensive activities shall be carried out upon any Building Lot or Common Area nor shall anything be done or placed on any Building Lot or Common Area if it unreasonably interferes with or jeopardizes the enjoyment of other Building Lots or the Common Areas or is a source of unreasonable annoyance to residents.  No unlawful use shall be made of a Building Lot or any part thereof, and all laws, zoning ordinances, and regulations of all governmental bodies having jurisdiction thereof shall be observed.  Without limiting the generality of the foregoing, no heat pump or other heating, ventilating, or air conditioning equipment, the operation of which produces noise at a level higher than eighty decibels (80dB) measured at the source, shall be allowed on or in any Building Structure.  (See Section 3.5, Association Rules and Regulations)

7.4 Use of Outdoor Living Areas

Unless otherwise approved by the Board pursuant to Article V of this Third Amendment, Improvements to Outdoor Living Areas shall be limited exclusively to patios, low-profile decks, and private planting and landscaping areas.

7.5 Parking

Parking of commercial vehicles, boats, trailers, motorcycles, truck tractors, truck trailers, truck campers, recreational vehicles, or other like vehicles or equipment shall not be allowed on any part of the Property, excepting only within applicable ordinances, agreements, or land use approvals and have been reviewed and approved by the Board prior to construction, and no portion of the same may project beyond the screened area.  No vehicles shall be parked on any part of the Properties except within the confines of an enclosed garage or within areas designated by the Board for parking purposes.

7.6 Vehicles in Disrepair

No Owner shall permit any vehicle that is in an “extreme state of disrepair” to be abandoned or to remain parked upon any Building Lot or on the Common Area for a period in excess of forty-eight (48) hours.  A vehicle shall be deemed in an “extreme state of disrepair” when the Board determines that its presence is offensive to the occupants of the Properties.  Should any Owner fail to remove such vehicle within five (5) days following the date upon which the notice is mailed to such Owner by the Association, the Association may have the vehicle removed from the Property, and by the means set forth in Article IV of this Third Amendment, assess the expense of such removal against the Owner of that Building Lot, and against the owner or driver of the vehicle, if that person is an Owner pursuant to Section 2.14.

7.7 Signs

No signs shall be erected or maintained on any Building Lot except signs approved as to appearance and location by the Board.

7.8 Rubbish and Trash

No Building Lot or part of the Common Area shall be used as a dumping ground for trash and rubbish of any kind.  All garbage and other waste shall be kept in appropriate sanitary containers for proper disposal and out of public view.  If any default under this Section 7.8 exists for a period longer than ten (10) days after written notice of such default is mailed to the responsible Owner by the Association, the Association shall have in addition to any other rights under this Third Amendment or at law or in equity, the remedies specified in Sections 8.2 (a), (b), and (c).  Upon resolution of the Board, duly enacted, all Owners shall utilize the trash collection services of a single designated company and shall not permit containers to be in public view excepting at such times(s) as designated by the Board from time to time.

7.9 Temporary Structure

No structure of a temporary character nor any vehicle, trailer, basement, tent, shack, garage, barn, or outbuilding on any Building Lot or Common Area shall be used at any time, either temporarily or permanently, as a residence.

7.10 Service Yards

Service yards (garbage, fuel tanks, clotheslines, etc.) shall be completely screened such that the elements screened are not visible at any time from the street or any adjoining property.

7.11 Antennas and Satellite Dish

Exterior antennas shall not be permitted to be placed on any Building Lot except as approved by the Board.

7.12 Common Walls

7.12.1 General Rules of Law to Apply

Each wall that is built as a part of the construction of a Building Structure and is placed on the dividing line between Building Lots shall constitute a common wall.  To the fullest extent not inconsistent with the provisions of this Section 7.12, the general rules of law regarding common walls and liability for property damage due to negligence or willful acts or omissions shall apply thereto.

7.12.2 Sharing of Repair and Maintenance

The cost of reasonable repair and maintenance of a common wall shall be shared by the Owners who make use of the wall in proportion to the relative areas of the wall used by each Owner.

7.12.3 Destruction by Fire or Other Casualty

If a common wall is destroyed or damaged by fire or other casualty, any Owner who has used or wishes to use the wall may restore it.  It other Owners thereafter make use of the wall; they shall contribute to the cost of restoration thereof, in proportion to such use.  The provisions of this Section 7.12.3 do not limit, in any way, the right of any such Owners to recover any amount from any other individual or entity under any rule of law regarding liability for negligent or willful acts or omissions

7.12.4 Weatherproofing

Notwithstanding any other provision of this section, an Owner who, by negligent or willful act, causes a common wall to be exposed to the elements shall bear the whole coast of repairing the damage caused thereby and of furnishing the necessary protection against the elements.

7.12.5 Right to Contribution Runs with Land

The right of any Owner to contribution from any owner under this Section 7.12 shall be appurtenant to the Building Lot of the Owner seeking contribution and shall pass to such Owner’s successors and assigns.

7.12.6 No Breach of Common Walls

Each Owner shall ensure that common walls separating his or her dwelling unit from other dwelling units within the same Building Structure are not punctured or otherwise breached by such Owners, his or her lessees, invitee, contractors, family members, or agents.

7.13 Rental/Leasing of Building Structures

7.13.1 Procedures

Effective immediately upon approval of this amended Subsection 7.13.1.1-7.13.1.5 of the Covenants, Conditions and Restrictions, no more than thirty percent (30%) of the total number of units at Wild Oaks, i.e., a maximum of 15 units may be rented or leased by Owner(s) at any one time. Any other Owner who desires to rent or lease his/her unit at any time must obtain written confirmation from the Board that fewer than 30% of the total number of units are being rented or leased at the time of inquiry, PRIOR to entering into any lease or rental agreement.  If the Board fails to review and approve an Owner(s)’ proposed rental or lease agreement within 7 business days, such proposal will be deemed accepted, the Owner shall have 3 additional days to seek acceptance from the Board President or his or her designee upon a finding that acceptance would not result in more than 30% of units being rented.

7.13.1.1 No later than three days after an Owner enters into a rental or lease agreement for his/her unit, the Owner, or an agent of the Owner, must deliver to the Board President a copy of the rental/lease agreement which has been signed by all parties to this agreement.

7.13.1.2 No later than 30 days after the signing of any rental or lease agreement for a Wild Oaks unit, the Owner(s) must provide the Board President with the following information in writing: the name(s) of each person who will be living in the unit; the names and number of all pets that will be living within the unit, or on the premises of the unit; the model, make, year and license number of each vehicle owned by the prospective tenant(s) that will be parked regularly in the unit’s garage and/or designated parking space; the home and work telephone numbers of each tenant, and confirm that such tenants have received a copy of the Covenants, Condition, and Restrictions, the Rules and Regulations and the Bylaws.

7.13.1.3 Upon the vacation of the tenant or tenants of a rented or leased unit, the Homeowner(s) may enter into a new rental or lease agreement with a new tenant or tenants without reapplying to the Board if: (a) within 30 days after the tenants vacate the unit, the Homeowner notifies the Board President in writing of his/her intent to continue renting/leasing the unit; (b) the Homeowner enters into a rental/leasing with a new tenant within 180 days after the date of vacation of the unit by the previous tenant or tenants; and (c) the Homeowner delivers to the Board President a new signed rental or lease agreement, and updated information on the unit, in accordance with procedures set forth in 7.13.1.1 and 7.13.1.2 of this Third Amendment.

7.13.1.4 Any Owner who rents or leases his/her unit is legally responsible for all actions of any and all tenants/residents with whom the lease agreement has been signed, including such violations by such tenants of the Covenants, Conditions, Restrictions, the Rules and Regulations and/or the Bylaws.  The Owner is responsible for ensuring that any and all tenants of his/her unit, and any other person who is living or staying in the unit, comply with the Covenants, Conditions, and Restrictions, the Rules and Regulation and/or the Bylaws. 

It is the purpose and intent of this Third Amendment to ensure that all tenants have received and understand all information regarding the restrictions and obligations that apply to EACH person who lives in Wild Oaks, prior to entering into any rental/lease agreement with an Owner and to ensure that the Board is informed of all tenant information prior to occupancy.

7.13.2 Liability

Neither the Board nor any members thereof shall be liable to any Owner or any present or prospective tenant for any damage, loss, or prejudice suffered or claimed on account of any act of the Board, or any member thereof with respect to Section 7.13, including negligence on the part of any Board member or officer.

7.13.3 Defaults: Penalties

Should any Owner enter into a rental or lease agreement or otherwise permit occupancy of his/her Building Structure without notifying the Board and being in full compliance with all of Section 7.13.1, such Owner shall be assessed a fine as established under Section VIII, Paragraph 3, of the accompanying Rules and Regulations.

7.13.4 Institutional Financing

In no event shall the Board accept any rental or lease agreement of any Building Lot or Building Structure if such rental or lease would result in the inability of Owners or prospective purchasers of property within the Properties to obtain permanent institutional mortgage financing on terms and conditions customarily offered by the residential lending industry.  In making this determination, the Board will consider evidence including but not limited to, the percentage limitation of non-Owner occupants for the Properties imposed by the Federal National Mortgage Association, the Federal Home Loan Corporation, the Federal Housing Administration, the Veterans’ Administration, and the rules of individual lending institutions.

7.13.5 Additional Restrictions

No Building Lot or Building Structure may be rented, leased, orotherwise used for transient or hotel purposes. A Building Lot or Building Structure may not be rented or leased for a period of less than 30 days. If the Board of Directors finds that a tenant has violated any provision of the Declaration, the Bylaws or the rules and regulations, the Board may notify the Owner and request that such lease or rental agreement be terminated by the Owner pursuant to the lease. The Board may adopt further rules and regulations to implement provisions of this Section 7.13.5.

7.13.6 Initial Ownership Period

 (a) Definitions. As used in this section:

 (1) “Independent Third Party” shall mean a person  other than the Owner.

 (2) “Initial Ownership Period” shall mean one (1)  year from the date an Owner acquires title to the Building Lot by a deed recorded in the Records of Lane County, Oregon, or by other manner of conveyance recognized under Oregon Law.  The computation of the Initial Ownership Period is not affected  if an Owner changes the nature of Owner’s interest to an  interest described in ORS 94.639(3)(b) to (d).

 (3) “Unit” shall mean all or a portion of a Building  Structure, located upon a Building Lot and designated for  separate occupancy or ownership.

 (b) Rental or Leasing Prohibition during Initial Ownership Period

 Except as provided under Paragraph (c) of this section, an Owner may not rent or lease Owner’s Unit to an Independent Third Party during the Initial Ownership Period.

 (c) Exemptions. The restriction in Paragraph (b) of this subsection does not apply to:

 (1) a first Mortgagee who acquires a Lot by foreclosure, deed in lieu of foreclosure or other arrangement in lieu of foreclosure. A successor in interest to the first Mortgagee is subject to Paragraph (b) of this subsection of this section. However, a person who succeeds to the interest of a first Mortgagee and who acquires title to the Building Lot subject to a rental or lease agreement may continue to rent or lease the Unit until the end of the term of the tenancy, unless the Rental Agreement provides otherwise.

(2) an Owner to the extent the enforcement of Paragraph (b) of this subsection is prohibited by Servicemembers' Civil Relief Act ("SCRA"), 50 U.S.C. app. §§ 501 et seq.

 (3) an Owner who has been granted a hardship  exemption by the Board of Directors.

7.14 Pets

No animals, livestock, or poultry of any kind shall be raised, bred, or kept on any part of the Properties except dogs, cats, or other tame, domestic household pets, provided that no dog shall be permitted to run loose at any time and shall be kept on a leash or under the personal control and in the presence of the Owner at all times.  Pets shall be limited to two (2) per Building Lot.  No pet shall be allowed to create an objectionable odor or noise.  Owners are responsible to clean up their pet’s droppings.  The Board may, on a case-by-case basis, require the removal of a pet, which has become a problem even if that problem does not rise to the level of a legal nuisance.

7.15 Arbitration

If any dispute arises under the provisions of this Article VII, the dispute shall be conclusively resolved by arbitration.  Each party shall choose one arbitrator, and those arbitrators shall choose one additional arbitrator.  The decision of a majority of all arbitrators shall be final and binding. Discovery shall take place pursuant to the Oregon Rules of Civil Procedure.

Article IX: Casualty

9.1 General Statement on Casualty

The Association shall be responsible for repairing, reconstructing, and rebuilding all damage to or destruction of (a) the structural components of the Building Structures and (b) the Common Area subject to the provisions of this Article IX and of Article III.  The Association shall rebuild and/or restore the damaged or destroyed portions of the structural components of the Building Structures and the Common Area to substantially the same condition in which these existed prior to such damage or destruction unless Owners of at least seventy five percent (75%) of the Building Lots and at least seventy-five percent (75%) of first mortgagees of affected Building Lots agree that the damaged or destroyed portions shall not be rebuilt and/or restored.  Rebuilding and/or restoration shall begin within sixty (60) days following the damage or destruction. 

If the proceeds of the insurance policies held by the Association are insufficient to fund the full cost of rebuilding and/or restoration, the differences between the amount of such proceeds and such cost shall be charged to all Owners by means of a Special Assessment.  If the required number of Owners and first Mortgagees of Building Lots agree that the damaged or destroyed portions of the Building Structures and/or Common Areas shall not be rebuilt and/or restored, the proceeds of the insurance policies held by the Association shall be distributed on an equitable basis among the Owners of Building Lots in such a manner as the Board shall determine.  The Association shall represent the Owners in any proceeding, negotiation, settlement or agreement relating to the payment of proceeds under any insurance policies held by the Association.