Last Update 10 January 2013
ARTICLE XV
ANNEXATION OF ADDITIONAL PROPERTY

Additional real property may be annexed to the real property described in Paragraph A of the Preamble to this Declaration and such additional real property may become subject to this Declaration by any of the methods set forth hereinafter:

Section 15.01. Additions by Declarant. Declarant or its successors or assigns shall have the right from time to time to add the Annexable Area, or any portion or portion is thereof (including any recreation facilities located thereon), to the Project and to bring such added territory within the general plan and scheme of this Declaration without the approval of the Association, its Board of Directors, or Members; provided that such a right of Declarant and its successors and assigns shall terminate on the third anniversary of the original issuance of the most-recently-issued Final Subdivision Public Report for the most recent Phase of Development. For so long as and provided the Federal Housing Administration (“FHA”) or the Veterans Administration (“VA”) are insuring or guaranteeing loans on any Condominium in the Project, or have agreed to insure or guarantee loans on any Condominium in the Project, then a condition precedent to such annexation shall be that the FHA or VA determines that the annexation is in accordance with the general plan theretofore approved by them. As each Phase of Development is developed, Declarant my, with respect thereto, record a Supplemental Declaration which may supplement this Declaration with such additional covenants, conditions, restrictions, reservations and easements as Declarant may deem appropriate for that Phase of Development.

Section 15.02. Other Additions. In addition to the provision for annexation specified In Section 15.01 above, additional real property may be annexed to the Project and brought within the general plan and scheme of this Declaration upon the approval by vote or written consent of Members entitled to exercise no less than three-fourths (3/4ths) of the voting power of each Class of Members and of the first Mortgagees, if any, of the approving Members.

Section 15.03. Rights and Obligations of Members Added Territory. Subject to the provisions of Section 15.04, upon the Recording of a Notice of Addition of Territory containing the provisions as set forth in this Section, all provisions contained in this Declaration shall apply to the real property described in such Notice of Addition of Territory (the “added territory”) in the same manner as if it were originally covered by this Declaration. Thereafter, the rights, powers and responsibilities of the parties to this Declaration with respect to the added territory shall be the same as with respect to the Property originally covered hereby, and the rights, powers and responsibilities of the Owners, lessees and occupants of Units within the added territory, as well as within the Property originally subject to this Declaration, shall be the same as if the added territory were originally covered by this Declaration. From and after Close of Escrow for the sale of the first Condominium in the added territory, the Owners of Condominiums located in the added territory shall share in the payment of assessments to the Association to meet Common Expenses of the entire Project as provided in Section 5.05 hereof.

Section 15.04. Notice of Addition of Territory. The additions authorized under Sections 15.01 and 15.02 shall be made by Recording a Notion of Addition of Territory, or other similar instrument (which Notice or Instrument may contain the Supplemental Declaration, if any, affecting each such Phase of Development), with respect to the added territory which shall be executed by Declarant and shall extend the general plan and scheme of this Declaration to such added territory (“Notice of Addition”). The Recordation of said Notice of Addition shall constitute and effectuate the annexation of the added territory described therein, and thereupon said added territory shall become and constitute a part of the Project, become subject to this Declaration and encompassed within the general plan and scheme of covenants, conditions, restrictions, reservation of easements and equitable servitudes contained herein, and become subject to the functions, powers and jurisdiction of the Association; and the Owners at Condominiums in said added territory shall automatically become Members of the Association. Such Notice of Addition may contain such additions and modifications of the covenants, conditions, restrictions, reservation of easements and equitable servitudes contained in this Declaration as may be necessary to reflect the different character, if any, of the added territory, or as Declarant may deem appropriate in the development of the added territory, and as are not inconsistent with the general plan and scheme of this Declaration. In no event, however, shall such Notice of Addition revoke, modify or add to the covenants, conditions, restrictions, reservation of easements, or equitable servitude established by this Declaration as the same shall pertain to the real property originally covered by this Declaration or modify in any way the proportionate ownership interest in the Common Areas of Unit Owners in any other Phase of Development.

Section 15.05. Deannexation. Declarant may delete all or a portion of a Phase of Development from coverage of this Declaration and the jurisdiction of the Association, so long as Declarant is the owner of all of such Phase of Development, and provided that (1) a Notice of Deletion of Territory is Recorded in the same manner as the applicable Notice of Addition was Recorded, (2) Grantor has not exercised any Association vote with respect to any portion of such Phase of Development, (3) assessments have not yet commenced with respect to any portion of such Phase of Development, (4) Close of Escrow has not occurred for the sale of any condominium in such Phase of Development, and (5) the Association has not made any expenditures or incurred any obligations with respect to any portion of such Phase of Development.

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