Park River Oak Estates Homeowner's Association

CC&Rs

ARTICLE XVIII

Annexation of Properties

[18.1] Section 1. Scope of Article; Nature of Annexation. An annexation is defined, for purposes of this Article XVIII, as any addition of property to the Properties included within the jurisdiction of this Declaration and the Association. Once annexation occurs, the newly annexed territory and the Owners of property therein shall have the same rights, duties, and obligations as any other property included within the Properties and the Owners of such Properties. Any owner of real property which is adjacent to any border of the Properties, including the Association if it owns any such property, can make a written request to the Association board that a proposed annexation be submitted to the Members for approval in accordance with section 2, below. For purposes of this Article XVIII, a parcel or parcels of property shall be considered contiguous to the Properties and thus eligible for annexation (“annexable property”) if the property shares a common boundary with any portion of the Properties or with any other parcel (“adjoining parcel”) which shares a common border with the Properties and is proposed for annexation contemporaneously with the adjoining parcel. Parcels proposed for annexation must be separate legal parcels and all governmental approvals required as a condition for annexation must be obtained by the owner of the annexable property at his or her sole cost and expense.

[18.2] Section 2. Application for Annexation. In order to initiate a membership vote on the proposed annexation, the owner of the annexable property shall present a written proposal for annexation to the Association’s Board of Directors which shall include at least the following:

 

(a) A copy of the Declaration of Annexation (see section 5, below) which will be recorded with the County Recorder’s Office upon approval of the proposed annexation by the Members;

(b) A detailed description of the owner’s intentions with respect to the development, subdivision, and use of the annexable property, including any special development conditions imposed by the County in connection with the approval of a Subdivision Map for the annexable property or any proposal to create any local districts or County Service Areas which will have jurisdiction over the annexable property or any portion thereof;

(c)  If any additional Common Areas or Common Facilities are proposed within the annexable property, detailed financial budgets and projections disclosing the maintenance, repair, operations, and capital reserve obligations which are likely to be incurred by the Association as a result of the annexation.

(d)  If the proposed annexation will involve the formation of any sub-associations with jurisdiction within the annexable property or the recordation of a supplemental declaration as provided in section 5, below, copies of all relevant documentation shall be furnished to the Board.

[18.3] Section 3. Board Approval. Upon receipt of a complete application for annexation, the Board shall have a period of 60 days to evaluate and act upon the proposal. The board’s action shall be to (a) approve the proposal and call for a membership vote thereon by written ballot in accordance with section 4, below; (b) disapprove the proposal; or (c) approve the proposal subject to the satisfaction of specified conditions. Unless board approval is obtained, no annexation proposal need be presented to the Members unless a petition requesting a membership vote on the matter is signed by at least five percent of the Members and presented to the Board (see Article V, section 6 of the Bylaws). Among other requirements, the Board’s approval can be conditioned upon the owner of the annexable property agreeing to defray the costs of photocopying and mailing to the Members of all relevant documentation, the ballot and appropriate solicitation materials.

[18.4] Section 4. Membership Approval Required. Additional real property meeting the requirements of section 1, above (the “annexable property”), may be annexed to the Properties and brought within the general plan and scheme of this Declaration upon the approval by vote or written consent of Members entitled to exercise not less than a majority of the voting power of the Association’s membership. The Member vote shall be conducted by written ballot in accordance with Article IV, section 6 of the Bylaws and the solicitation materials accompanying the ballot shall include a copy of the proposed Declaration of Annexation as well as any other information considered by the Board to be necessary or appropriate for an informed decision by the Members. To effect the annexation described herein approval must consist of not less than two-thirds of the total votes residing in Association members other than Declarant unless the proposed annexation is in substantial

 

conformance with the detailed plan of phase development submitted to the Commissioner of the Department of Real Estate where the application for a public report for the first phase of the subdivision.

The detailed plan for the phase development through an annexation referred to hereinabove must include but not be limited to proof to the Commissioner that no proposed annexation will result in an overburdening of common facilities, proof satisfactory to the Commissioner that no proposed annexation will cause a substantial increase in assessments against existing Owners which was not disclosed in Subdivision Public Reports under which pre-existing Owners purchased their interests, a bonification of the land proposed to be annexed and the total number of residential units contemplated by Declarants for the overall subdivision development, provisions setting forth that annexation of a new phase will be effected prior to the third anniversary of the issuance of the original public report for the immediately preceding phase, and a written commitment by Declarant to pay to the Association, closing of the escrow for the first sale of a Lot and in the annex phase, appropriate amounts for reserves or replacement or deferred maintenance of Common Area improvements in the annex phase necessitated by or arising out of the use and occupancy of residential units and their rental program conducted by Declarant which had been effect for a period of at least one year as of the date of closing of the escrow for the first sale of a residential unit in annex phase.

[18.5] Section 5. Declaration of Annexation; Supplemental Declarations. Any annexations of real property to the Properties authorized under sections 3 and 4, above, shall be effected by filing with the Office of the County Recorder a Declaration of Annexation, or other similar instrument, with respect to the annexable property. The Declaration of Annexation (a) shall be executed by the owner of the annexable property; (b) shall extend the general plan and scheme of this Declaration to such real property; and (c) may include, as an exhibit, a supplemental declaration (the “Supplemental Declaration”) applicable to the annexable property only, which may contain such additions to, and modifications of, the covenants, conditions and restrictions contained in this Declaration as may be necessary to reflect the different character, if any, of the annexable property, so long as the Supplemental Declaration is submitted to the Members for consideration at the time their votes are solicited and the supplemental restrictions are consistent with the general plan and scheme of this Declaration and all applicable laws and governmental regulations.

Without limiting the foregoing, it is expressly agreed that any Supplemental Declaration may set forth property use restrictions and design and building standards which shall apply solely to Lots or parcels within the annexed property and any Improvements constructed thereon. Supplemental Declarations may also establish a separate architectural review committee to perform the review and approval functions set forth therein, or may indicate that those functions are to be performed by the architectural review committee referred to in article V of this Declaration. If a particular Lot or parcel is affected by a Supplemental Declaration which establishes an architectural review committee, then that committee shall have jurisdiction over the initial design and construction of any Improvements proposed for construction on such Lot or parcel.


This Declaration shall control if there is any conflict between any Supplemental Declaration and the provisions of this Declaration, although the documents shall be construed to be consistent with one another to the extent possible. The inclusion in any Supplemental Declaration of conditions, covenants, land uses and limitations which are more restrictive or are inclusive than the restrictions contained in this Declaration shall not be deemed to constitute a conflict with the provisions of this Declaration.

[18.6] Section 6. Annexation by Declarant. Notwithstanding other sections of Article 18 annexation of additional property may occur at the sole discretion of Declarant, any or all of the property described in Exhibit “C” may be annexed to and become a part of the Properties, subject to this Declaration, and subject to the jurisdiction of the Association, without the necessity of amending individual sections of this Declaration, without the ascent of the Association or its members, or without the ascent of the Lot Owners, on condition that;
(a)             Any annexation pursuant to this section shall be made prior to the third anniversary of the issuance of the original public report for the immediately preceding phase of the project; and

(b)             The annexation and development of additional phases shall be in accordance with a Plan of Development approved by the Department of Real Estate of the State of California; and

(c)  A Declaration of Annexation shall be recorded covering the applicable portion of the property to be annexed. The Declaration may contain such complimentary additions and modifications of the Covenants and Restrictions contained in this Declaration as may be necessary. To reflect a different character, if any, of the added property, and as are not inconsistent with the scheme of this Declaration.

[18.7] Section 6. Effect of Annexation. The filing of a Declaration of Annexation shall constitute and effectuate the annexation of the annexable property described therein, and thereupon the annexable property shall become and constitute a part of the Properties, and be subject to, and encompassed within, the general plan and scheme of this Declaration, subject only to such modifications in said general plan as may be imposed by the Supplemental Declaration. Lots or parcels within the annexed property shall thereupon become subject to Assessment by the Association and to the functions, powers, and jurisdiction of the Association, and the Owners of Lots or Units within the annexed real property shall automatically become Members of the Association. Any Common Areas (including private roads) which are included within the annexed property shall be conveyed to the Association, free of all liens and encumbrances, other than liens, rights-of-way, or other encumbrances disclosed on the preliminary title report for the annexed property and approved by the Association. The conveyance of any Common Areas to the Association shall occur immediately following recordation of the Declaration of Annexation unless otherwise agreed in writing by the owner of the annexed property and the Association Board.