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HomeMy WebLinkAbout20260091 Lexington Rd & Bemis Heights Rd Subdivision Modification 9049 Bemis Point HOA Declaration - CLEAN 6.4.26 DECLARATION OF PROTECTIVE COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS, CHARGES AND LIENS OF BEMIS POINT HOMEOWNERS’ ASSOCIATION, INC. SPONSOR and DECLARANT: AAADMC VENTURES LLC. DATE OF DECLARATION: _____________, 2026 i TABLE OF CONTENTS ARTICLE I DEFINITIONS ........................................................................................................ 2 Section 1.01 Definitions ............................................................................................................ 2 ARTICLE II PROPERTY SUBJECT TO THIS DECLARATION; ADDITIONS THERETO .................................................................................................... 5 Section 2.01 The Property ......................................................................................................... 5 Section 2.02 Additional Property .............................................................................................. 5 Section 2.03 Mergers ................................................................................................................. 5 ARTICLE III THE ASSOCIATION: FORMATION AND MEMBERSHIP ................... 5 Section 3.01 Formation of the Association ............................................................................... 5 Section 3.02 Membership .......................................................................................................... 6 Section 3.03 Holder of Security Interest Not a Member ........................................................... 6 ARTICLE IV PROPERTY RIGHTS AND EASEMENTS ...................................................... 6 Section 4.01 Dedication of Association Property ..................................................................... 6 Section 4.02 Rights of Association ........................................................................................... 6 Section 4.03 Maintenance of Association Property .................................................................. 7 Section 4.04 Environmental Consideration ............................................................................... 7 Section 4.05 Wetlands Protection, Restrictions and Maintenance Requirements.. ................... 7 Section 4.06 Other Provisions ………………………………………………………………...9 Section 4.07 Title to the Lots. ................................................................................................. 10 ARTICLE V ASSESSMENTS: ALLOCATION, LIEN AND LIABILITY ......................... 10 Section 5.01 Obligations to Pay Assessments ......................................................................... 10 Section 5.02 Determination of and Basis for Assessments ..................................................... 11 Section 5.03 Purpose of Maintenance Assessments ................................................................ 11 Section 5.04 Date of Commencement and Notice of Assessments ......................................... 12 Section 5.05 Change in the Basis of Assessments .................................................................. 12 Section 5.06 Special Assessments for Capital Improvements ................................................ 12 Section 5.07 Assessments: Personal Obligations of the Member and Lien on Home ............ 13 Section 5.08 Foreclosure of Lien for Past Due Assessments .................................................. 13 Section 5.09 Notice of Default ................................................................................................ 14 Section 5.10 No Exemption or Waiver of Assessments .......................................................... 14 Section 5.11 Grantee to be Liable with Grantor for Unpaid Assessments .............................. 14 Section 5.12 Right to Maintain Surplus .................................................................................. 14 Section 5.13 Assessment Certificates ...................................................................................... 14 ARTICLE VI MAINTENANCE BY THE ASSOCIATION .................................................. 15 Section 6.01 Repairs and Maintenance by the Association ..................................................... 15 Section 6.02 Repairs and Maintenance Which Are Not the Responsibility of the Association15 Section 6.03 Alterations, Additions or Improvements to the Association Property ............... 15 ARTICLE VII INSURANCE AND RECONSTRUCTION ................................................... 16 Section 7.01 Insurance to be Carried by the Association. ............................................................ 16 Section 7.02. Restoration or Reconstruction After Fire or Other Casualty. ................................. 18 Section 7.03. Insurance To Be Carried By Owners. ..................................................................... 18 Section 7.04. Actions Which May Increase Insurance Rates Prohibited. .................................... 18 ii ARTICLE VIII DURATION, ENFORCEMENT AND AMENDMENT OF DECLARATION........................................................................................ 19 Section 8.01 Duration .............................................................................................................. 19 Section 8.02 All Owners, Tenants and Occupants Are Subject to Declaration which Runs with the Land ........................................................................................................................... 19 Section 8.03 Abatement .......................................................................................................... 19 Section 8.04 Rules and Regulations ....................................................................................... 19 Section 8.05 Enforceability, Penalties and Fines .................................................................... 20 Section 8.06 No Waiver by Failure to Enforce ...................................................................... 20 Section 8.07 Obligation and Lien for Cost of Enforcement by Association ........................... 21 Section 8.08 Self-Help Abatement .......................................................................................... 21 Section 8.09 Amendment ........................................................................................................ 21 Section 8.10 Conflict with Municipal Laws ............................................................................ 23 Section 8.11 Attorney’s Fees Assessments ............................................................................. 23 Section 8.12 Change of Conditions ......................................................................................... 23 ARTICLE IX SELLING, MORTGAGING AND LEASING OF LOTS ............................. 23 Section 9.01 Selling, Leasing and Mortgaging of Homes ....................................................... 23 Section 9.02 Book of First Mortgagees ................................................................................... 23 Section 9.03 No Severance of Ownership ............................................................................... 23 Section 9.04 Member Responsible for Tenants ....................................................................... 24 ARTICLE X GENERAL COVENANTS AND RESTRICTIONS ......................................... 24 Section 10.01 Restrictions on Use of Lots .............................................................................. 24 Section 10.02 Use of the Property ........................................................................................... 25 ARTICLE XI GENERAL ......................................................................................................... 25 Section 11.01 Headings and Captions ..................................................................................... 25 Section 11.02 Severability ....................................................................................................... 26 Section 11.03 Waiver .............................................................................................................. 26 Section 11.04 Gender: Plural ................................................................................................... 26 Section 11.05 Notices .............................................................................................................. 26 Section 11.06 Right of Association to Transfer Interest ......................................................... 26 SCHEDULE A 28 Perimeter Description of All Lands of Bemis Point Homeowners’ Association, Inc. Made Subject to This Declaration ..................................................................................................... 28 SCHEDULE B 29 PARCEL 1 Easement Rights to be Conveyed to Bemis Point Homeowners’ Association, Inc.29 1 DECLARATION OF PROTECTIVE COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS, CHARGES AND LIENS OF BEMIS POINT HOMEOWNERS’ ASSOCIATION, INC. THIS DECLARATION OF PROTECTIVE COVENANTS, CONDITIONS, RESTRICTIONS EASEMENTS, CHARGES AND LIENS OF BEMIS POINT HOMEOWNERS’ ASSOCIATION, INC. (the “Declaration”) is made this ___ day of _____________, 2026 by AAADMC VENTURES LLC, a New York limited liability company having an office at 1 Nadeau Road, Halfmoon, New York 12065, being referred to hereinafter as the “Sponsor”. WITNESSETH: WHEREAS, the Sponsor owns certain parcels of real property (the “Property”) in the City of Saratoga Springs, Saratoga County, New York (said Property being more fully described in Schedule A attached hereto); and WHEREAS, the Sponsor intends to develop said real property into a residential community known as “Bemis Point Homeowners’ Association, Inc.” (hereinafter sometimes referred to as either the “Association” or the “Community”), consisting of approximately 21.78+/- acres of land, on which may be constructed a maximum of thirteen (13) Homes on separate Lots and upon a portion of said Property there will be the discharge of dredged or fill material into a maximum of 0.44+/- acres of federal wetlands in a manner authorized by Department of the Army Permit number NAN-2022-00960-UCA (“DA Permit”) issued on April 13, 2026 by the United States Army Corps of Engineers, New York District (“Corps of Engineers”, to include any successor agency) in accordance with the federal Clean Water Act, 33 U.S.C. § 1344; and WHEREAS, in recognition of the continuing benefit to the Property; and for the protection of waters of the United States and scenic, resource, environmental, and general property values, the Sponsor and Declarant has included in Section 4.05 of this Declaration certain restrictive covenants on a portion of the Property comprising 17.18+/- acres (as further described in Section 1.01(t) hereof, the “Restricted Property”), in order that the Restricted Property shall remain substantially in its natural condition forever, except as expressly identified herein; and WHEREAS, the placement of said restrictive covenants on the Restricted Property along with other mandatory maintenance obligations are also required by the City of Saratoga Springs Planning Board (the “Planning Board”) as a condition of its approval of the Declarant’s subdivision as shown on the Approved Subdivision Map (collectively, the “City Approvals”); WHEREAS, the Sponsor desires to provide for the preservation of the values and amenities in the Community and to assist in accomplishing this desires to subject the land described in Schedule A to this Declaration of Protective Covenants, Conditions, Restrictions, Easements, 2 Charges and Liens of Bemis Point Homeowners’ Association, Inc. (hereinafter referred to as this “Declaration”) which is for the benefit of said property and each Home Owner thereof; and WHEREAS, the Sponsor has deemed it desirable, for the efficient preservation of the values and amenities in said Community to create an agency to which should be delegated and assigned the powers, among others, of (i) maintaining, administering and preserving the Restricted Property (as hereinafter defined); (ii) administering and enforcing the covenants, conditions and restrictions of the Declaration; (iii) maintaining the stormwater facilities in accordance with the requirements of the City of Saratoga Springs as set forth herein; and (iv) collecting and disbursing the assessments and charges hereinafter created; and WHEREAS, the Sponsor has incorporated Bemis Point Homeowners’ Association, Inc. under the Not-for-Profit Corporation Law of the State of New York for the purpose of exercising the aforesaid powers, among others. NOW, THEREFORE, the Sponsor for itself, its successors and assigns declares that the real property described in Article II and in Schedule A hereof is and shall be held, transferred, sold, conveyed and occupied, subject to this Declaration. ARTICLE I DEFINITIONS Section 1.01 Definitions The following words, phrases or terms when used in this Declaration or in any Supplemental Declaration shall, unless the context otherwise prohibits, have the following meanings: a. APPROVED SUBDIVISION MAP means the subdivision plat stamped approved and signed by the City of Saratoga Springs Planning Board and such other governmental agencies required by law, and filed in the Saratoga County Clerk’s Office, and any subsequently filed amended or revised subdivision plat or plats (inclusive of all sheets filed in the Saratoga County Clerk’s Office along with the Approved Subdivision Map). b. ASSESSMENTS means, collectively, the Special Assessments and the Maintenance Assessments. c. ASSOCIATION means BEMIS POINT HOMEOWNERS’ ASSOCIATION, INC. d. ASSOCIATION PROPERTY or COMMON PROPERTY means the easement rights of the Association relating to (i) the Restricted Property, (ii) the stormwater quality basins, and (iii) the split rail fencing and (iv) the signage denoting the Restricted Property as described in Schedule B, and the split rail fencing and signage referenced above that are owned by and the property of the Association. . 3 e. AUTHORIZED VOTES means there shall be only one vote for each Voting Owner regardless of the number of Lots owned by such Owner. f. BY-LAWS means the By-Laws of the Association, as the same may be amended from time to time by the Members of the Association. g. BOARD OF DIRECTORS or BOARD means the Board of Directors of the Association. h. COMMUNITY means the approximately 21.78+/- acre tract of land located in the City of Saratoga Springs, Saratoga County, New York on which will be developed the thirteen (13) Homes on separate Lots in the residential community known as “BEMIS POINT.” i. DECLARATION means this document of Protective Covenants, Conditions, Restrictions, Easements, Charges and Liens of BEMIS POINT HOMEOWNERS’ ASSOCIATION, INC., as it may from time to time be supplemented, extended or amended in the manner provided for herein. j. FIRST MORTGAGE means the first mortgage granted by an Owner on a Home to a bank, federal savings and loan association, life insurance company, pension fund, trust company or other institutional lender, licensed mortgage banker or broker, an individual or the Sponsor. k. FIRST MORTGAGEE means the original first mortgagee, its representatives, assigns or other holder of a First Mortgage on a Home. l. HOME means each completed Home situated upon the Property (as evidenced by issuance of a Certificate of Occupancy issued by the appropriate municipality), including the garage appurtenant to such Home, if any. Unless the context clearly indicates otherwise, the term “Home” shall be deemed to include the term “Lot”. m. HOME OCCUPATION means the definition of “Home Occupation”, if any, as may be contained in the City of Saratoga Springs Zoning Ordinance. n. LOT means any portion of the Property (with the exception of Association Property) under the scope of the Declaration and identified as a separate parcel on the tax records of the City of Saratoga Springs, New York. Unless the context clearly indicates otherwise, the term “Lot” is included in the term “Home”. o. MAINTENANCE ASSESSMENTS means the charges levied by the Board of Directors against the Homes in accordance with Article V hereof to pay the cost of maintaining, repairing, improving and replacing the Association Property, together with such amounts deemed appropriate by the Board of Directors to be maintained as reserves for replacement of Association Property, and for administering the affairs of the Association. 4 p. MORTGAGEE means any mortgagee, its representatives, assigns, servicing agent or other holder of a mortgage on a Home. q. OWNER or HOME OWNER or MEMBER means the holder of record title, whether one or more Persons, of fee simple title to any Home or Lot, whether or not such holder actually resides at such Home, and shall include the Sponsor with respect to any Unsold Home brought under this Declaration. r. PERSON means an individual, a corporation, a partnership, an estate, a trust, an unincorporated organization or any other entity. s. PROPERTY means all real property that now or in the future is subject to the Declaration, as described in Section 2.01, including any additional property that may be made subject to the Declaration pursuant to Section 2.02. t. RESTRICTED PROPERTY means the 17.18± acres of wetlands and adjacent uplands shown on the Approved Subdivision Map (including the full set of plans filed in the Saratoga County Clerk’s Office with respect to the development of the Property as approved by the City of Saratoga Springs Planning Board). u. RULES AND REGULATIONS means the Rules and Regulations, if any, promulgated by the Board of Directors pursuant to the By-Laws or the Declaration, as the same may be amended from time to time. v. SPECIAL ASSESSMENTS means the charges levied by the Board of Directors against the Home or Lots in accordance with Article V hereof to pay for capital improvements or other necessary out of the ordinary expenses. w. SPONSOR or DECLARANT means AAADMC VENTURES LLC, a New York limited liability company with an office at I Nadeau Road, Halfmoon, NY 12065, its successors and assigns. x. SUPPLEMENTAL DECLARATION means any Supplemental Declaration supplemental hereto or amendatory hereof executed in accordance with the provisions hereof. y. TRANSFER OF CONTROL DATE means the date that is thirty (30) days after either the Sponsor has transferred title to one hundred percent (100%) of the Lots or the Sponsor has given written notice to the Association that Sponsor is electing to transfer control of the Association to the Board of Directors, whichever first occurs. z. UNSOLD HOME means any Home or Lot owned by the Sponsor or its designee other than any Home held by the Sponsor for personal use or personal investment. aa. VOTING OWNER OR MEMBER means the Owner of a Home or Lot. In the event a Home or Lot is owned by more than one person, the Voting Owner shall be the person named in a certificate signed by all Owners of such Lot and filed with the Secretary of the 5 Board of Directors. If such certificate is not on file, the person or entity first named on the deed by which title is obtained shall be the person considered the Voting Owner. The Voting Owner of a Lot owned by a corporation, limited, liability company, partnership, trust, estate, or any other legal entity, shall be the authorized representative of such entity. ARTICLE II PROPERTY SUBJECT TO THIS DECLARATION; ADDITIONS THERETO Section 2.01 The Property The real property which shall be subject to this Declaration consists of 21.78+/- acres of land in the City of Saratoga Springs, County of Saratoga and State of New York, and more particularly described in Schedule A attached hereto and made a part hereof and sometimes referred to herein as the “Property”. The Property includes without limitation the Association Property, which consists of split rail fencing and signage required by the City of Saratoga Springs, and certain easement rights to maintain repair, and replace the (i) split rail fencing and signage required by the City of Saratoga Springs, (ii) the stormwater facilities more particularly described in Section 4.05 of this Declaration and (iii) the Restricted Property, and all Lots and Homes within the Association. Section 2.02 Additional Property Upon approval in writing of the Association pursuant to a vote of its Members as provided in the By-Laws, the owner of any property who desires to add it to the scheme of this Declaration and to subject it to the jurisdiction of the Association may do so provided any and all necessary approvals of the City of Saratoga Springs are obtained. Such additional property shall be added by recording a Supplemental Declaration in the Office of the Clerk of Saratoga County, New York signed by the Association and such owner. Any such Supplemental Declaration recorded shall indicate the number of projected lots on the property added to the scheme of this Declaration by such Supplemental Declaration. Section 2.03 Mergers Upon a merger or consolidation of the Association with another association its properties, rights and obligations may, by operation of law, be transferred to another surviving or consolidated association or alternatively, the properties, rights and obligations of another association may, by operation of law, be added to the properties, rights and obligations of the Association of a surviving corporation pursuant to a merger. The surviving or consolidated association may administer this Declaration within the Community, together with the covenants, conditions and restrictions established upon any other properties. No such merger or consolidation, however, shall effect any revocation, change or addition to the covenants, conditions and restrictions established by this Declaration within the Community, except as hereinafter provided. ARTICLE III THE ASSOCIATION: FORMATION AND MEMBERSHIP Section 3.01 Formation of the Association 6 Pursuant to the Not-for-Profit Corporation Law of the State of New York, the Sponsor has formed the Association to own, operate and maintain the Association Property, enforce this Declaration and to have such other specific rights, obligations, duties and functions as are set forth in this Declaration, the Certificate of Incorporation and By-Laws of the Association, as the same may be amended from time to time. Subject to the additional limitations provided in this Declaration, the By-Laws and the Certificate of Incorporation, the Association shall have all the powers and be subject to the limitations of a not-for-profit corporation as contained in the New York State Not-for-Profit Corporation Law as the same may be amended from time to time. Section 3.02 Membership The Association shall have as Members only Owners of Lots and Homes in the Community. All Owners shall, upon becoming such, be deemed automatically to have become Members and there shall be no other qualification for membership. Membership shall be appurtenant to, and shall not be separated from the ownership of the interest described in the definition of the word “Owner” as found in Article I of this Declaration. Section 3.03 Holder of Security Interest Not a Member No Person shall be deemed a Member or to have any voting right merely by reason of such Person’s holding a Mortgage on or other security interest in a Lot or Home. ARTICLE IV PROPERTY RIGHTS AND EASEMENTS Section 4.01 Dedication of Association Property (a) The Sponsor will convey to the Association subsequent to the recordation of this Declaration and at or prior to the conveyance of the first Lot or Home, the Association Property subject to the open space conditions and restrictions imposed by the City of Saratoga Springs Planning Board as noted on the Approved Subdivision Map filed or to be filed in the Saratoga County Clerk’s Office, and subject to the Easements of Access in favor of the Association, the City of Saratoga Springs and the Corps of Engineers. (b) The Association must accept any such conveyance and any future conveyance made by the Sponsor provided such conveyance and any such future conveyance are made without consideration. Section 4.02 Rights of Association With respect to the Association Property, and in accordance with the Certificate of Incorporation and the By-Laws, the Board of Directors, consistent with the conditions imposed by the City of Saratoga Springs Planning Board as noted on the Approved Subdivision Map (see also §4.05 below), shall have the right to contract with any Person for the performance of various duties and functions. Without limiting the foregoing, this right shall entitle the Association to enter into common management agreements with trusts, condominiums, cooperatives and other homeowners’ associations. Such agreements shall require the consent of two-thirds (2/3) of the entire Board of Directors of the Association. 7 Until the Transfer of Control Date, the Board of Directors may not exercise the foregoing rights as set forth in this Section 4.02 without the prior written consent of the Sponsor. None of the foregoing shall diminish the Association’s responsibilities of enforcing the restrictions and carrying out the maintenance responsibilities specifically set forth in Section 4.05 of this Declaration. Section 4.03 Maintenance of Association Property In order to preserve and enhance the values and amenities of the Association Property, the Association shall at all times maintain the Association Property in good condition and shall operate such Association Property in accordance with acceptable or generally accepted high standards. Further, the Association shall enforce the restrictions and carry out the maintenance responsibilities specifically set forth in Section 4.05 of this Declaration. Section 4.04 Environmental Consideration In carrying out its responsibilities in enforcing the provisions of this Declaration, the Association shall consider the environmental impact of any existing or proposed activities on the nature and character of the Community or any portion thereof and may, in its discretion, take affirmative action to improve the quality of the environment or establish standards or guidelines aimed at reducing or eliminating any activities which could have a significant adverse environmental impact. Until the Transfer of Control Date, no such action may be taken on the Property, nor may such guidelines be established without the prior written consent of the Sponsor. None of the foregoing shall diminish the Association’s responsibilities of enforcing the restrictions and carrying out the maintenance responsibilities specifically set forth in Section 4.05 of this Declaration. Section 4.05 Wetlands Protection, Restrictions and Maintenance Requirements.. The Restricted Property contains freshwater wetlands. The Association and its Members (and family members, tenants, guests and invitees of the Members) shall comply with all of the following restrictions applicable to the Restricted Property to preserve and protect the Restricted Property. A. General. There shall be no future filling, flooding, excavating, mining or drilling; no removal of natural materials; and no alteration of the topography which would materially affect the Restricted Property in any manner, except as authorized by the DA Permit. B. Waters and Wetlands. In addition to the general restrictions above, within the Restricted Property there shall be no draining, dredging, damming or impounding; no changing the grade or elevation, impairing the flow or circulation of waters, or reducing the reach of waters; and no other discharges or activity requiring a permit under applicable water pollution control laws or regulations, except as authorized by the DA Permit. 8 C. Trees/Vegetation. On the Restricted Property, there shall be no clearing, burning, cutting or destroying of trees or vegetation, except removal or trimming of vegetation hazardous to person or property, or of timber downed or damaged due to natural disaster, or as authorized by the DA Permit. There shall be no planting or introduction of non- native or exotic species of trees or other vegetation. D. Disposal. There shall be no dumping of trash, waste, garbage or toxic, unsightly, hazardous or offensive material on the Restricted Property. E. Uses. No agricultural, animal grazing, industrial, mining, logging or commercial activity shall be undertaken or allowed on the Restricted Property. F. Structures/Utilities. There shall be no construction, erection or placement of buildings, billboards, utilities components or any other structures, to include trailers, mobile homes or recreational vehicles, telecommunications towers or antennas, on the Restricted Property. G. Roads. There shall be no construction of roads, trails or walkways on the Restricted Property. H. Pest Control. There shall be no application of pesticides or herbicides on the Property, including the Restricted Property. I. Vehicle Use. There shall be no driving or use of any mechanical conveyance which may alter or impair the natural contour of the Restricted Property or its natural vegetation, except that motor vehicles may be used in case of emergency, for law- enforcement purposes, or to perform mitigation activity as required by the DA Permit. J. Other Prohibitions. Any other use of, or activity on, the Restricted Property which is or any way becomes inconsistent with the purposes of this Declaration, the preservation of the Restricted Property substantially in its natural condition, or the protection of its environmental systems, is prohibited. AFFIRMATIVE OBLIGATIONS A. Maintenance of Restricted Property. The Association shall provide for the annual inspection of the Restricted Property by a wetland technician or other qualified environmental professional to determine what maintenance and upkeep measures are necessary to prevent damage to any home (whether located on the Property or not) and its surrounding yard and to control and maintain appropriate water levels within the wetlands located on the Restricted Property. Such measures may include, but are not limited to, the management or removal of beavers and/or beaver dams. Prior to the first sale of a Lot, the Declarant shall obtain an inspection of the Restricted Property by a wetland technician or other qualified environmental professional to establish baseline conditions against which future inspections will be assessed. Within thirty (30) days following each inspection, the 9 Association shall cause the inspecting professional to prepare and submit to the City of Saratoga Springs a written report of findings including recommendations for those actions necessary to be taken with respect to the Restricted Property. The Association shall implement the recommendations of the inspecting professional in a timely manner and provide evidence of such implementation to the City of Saratoga Springs. The Association shall be responsible for obtaining all necessary permits and approvals, if any, to carry out the recommendations of the inspecting professional including, but not limited to, permits associated with the management or removal of beavers and/or beaver dams. B. Maintenance of Fencing and Signage. After initial installation by the Declarant of (i) split rail fencing and (ii) signage denoting the Restricted Area all in accordance with the Approved Subdivision Map, the Association shall maintain such fencing and signage in good condition, and shall repair and replace the same, as needed. C. Maintenance of Water Quality Basins. The Association shall maintain, clean, repair, replace and continue the three (3) stormwater quality basins designated on the Approved Subdivision Map (the “Water Quality Basins”) as necessary to ensure optimum performance of the Water Quality Basins to design specifications. The Association shall provide for the annual inspection of the Water Quality Basins by a qualified and licensed professional to determine the condition and integrity of the Water Quality Basins. The inspecting professional shall prepare and submit to the City of Saratoga Springs, within thirty (30) days of each inspection, a written report of the findings including recommendations for those actions necessary for the continuation of the Water Quality Basins. The Association shall undertake necessary repairs and replacement of the Water Quality Basins at the direction of the City of Saratoga Springs or in accordance with the recommendations of the inspecting professional, provided those recommendations have been previously approved by the City of Saratoga Springs. The Association shall not authorize, undertake or permit alteration, abandonment, modification or discontinuation of the Water Quality Basins except in accordance with written approval from the City of Saratoga Springs. If ever the City of Saratoga Springs determines that the Association has failed to maintain the Water Quality Basins in accordance with this Declaration or has failed to undertake corrective action as specified by the City of Saratoga Springs or by the inspecting professional, the City of Saratoga Springs is authorized to undertake such steps as may be reasonably necessary for the preservation, continuation or maintenance of the Water Quality Basins and the Association shall be responsible for the repayment of all expenses incurred by the City of Saratoga Springs. Section 4.06 Other Provisions. (a) The Declarant hereby grants to the Corps of Engineers, the U.S. Department of Justice and the City of Saratoga Springs a discretionary right to enforce the terms of this Declaration in a judicial action against any person or other entity violating or attempting to violate any of the terms hereof; provided, however, that no violation of the terms of this Declaration shall result in a forfeiture or reversion of title. In any enforcement action, an enforcing agency shall be entitled to a complete restoration for any violation, as well as any other judicial remedy such as civil or criminal penalties 10 or an award of agency attorneys’ fees. Additionally, any Owner shall have the right to enforce, by any proceeding at law or in equity, the provisions of this Declaration, against any other Owner who is in violation of the terms hereof. (b) The Corps of Engineers shall have the right, but not the obligation, to enter and go upon the Property to take actions necessary to verify compliance with the terms of this Declaration. The City of Saratoga Springs and its authorized agents shall have the right, but not the obligation, to enter and go upon the Property at all reasonable times and with seven (7) days prior notice, absent an emergency, to (a) inspect the Property to determine and verify compliance with the terms of this Declaration, (b) monitor the status, condition and location of wetlands and natural resources, (c) conduct research and development of the natural ecosystem, (d) enforce the terms of this Declaration and (e) take any and all actions necessary and appropriate to remedy or abate any violations thereof. As a condition of the City of Saratoga Springs’ right to access the Property, the City of Saratoga Springs and its authorized agents agree to hold harmless the Declarant, the Association and Owners for any and all claims of personal injuries alleged to be sustained while on or inspecting the Property, except for any such claims arising out of the Declarant, the Association or an Owner’s negligence. (c) Declarant shall include the following notice on all deeds, mortgages, plats and other legal instruments used to convey any interest in the Property (failure to comply with this paragraph does not impair the validity or enforceability of the terms of this Declaration): NOTICE: This Property is Subject to a Declaration of Protective Covenants, Conditions, Restrictions, Easements, Charges and Liens recorded at [insert book and page references, county(ies), and date of recording]. Section 4.07 Title to the Lots. By the delivery and acceptance of the deed to a Home or Lot, the Owner(s) thereof expressly agree that the Home and/or Lot, is subject to all express or reasonably implied easements and reservations set forth in this Declaration and the Approved Subdivision Map for the benefit of other Lot Owners and/or the Association. ARTICLE V ASSESSMENTS: ALLOCATION, LIEN AND LIABILITY Section 5.01 Obligations to Pay Assessments The Sponsor, for each Unsold Home or Lot owned by it within the Community and brought under this Declaration, hereby covenants, and each Owner of any Home or Lot brought under this Declaration whether or not it shall be expressed in any such deed of conveyance, shall be deemed to covenant and agree, to pay to the Association: 11 (a) Annual Assessments for the maintenance, repair, replacement, improvement and operation of the Association and its Property, and the other items set forth in Section 5.03 hereof (“Maintenance Assessments”); and (b) Special Assessments for capital improvements, as more fully set forth in Section 5.06 hereof (“Special Assessments”). The Maintenance Assessments and the Special Assessments together being referred to herein as the “Assessments”. Section 5.02 Determination of and Basis for Assessments (a) The Board of Directors shall, from time to time, but at least annually, fix and determine the budget representing the sum or sums necessary and adequate for the continued operation of the Association and shall send a copy of the budget and any supplement to the budget to each Member at least thirty (30) days prior to the adoption thereof. The Board shall determine the total amount required, including the operational items such as insurance, repairs, reserves, maintenance and other operating expenses, as well as charges to cover any deficits from prior years and capital improvements approved by the Board. The total annual requirements and any supplemental requirements shall be allocated among, assessed to, and paid by the Members as follows: each Member shall for each Home pay a portion of said requirements, the numerator of which shall be one (1) and the denominator of which shall be equal to the number of Homes in the Association from time to time. (b) Notwithstanding the foregoing, the Sponsor’s obligation for such Assessments on Unsold Homes or Lots subject to this Declaration shall be limited to the difference between the actual operating costs of the Association, including reserves on the Association Property, and the Assessments levied on Members who have closed title to their Homes or Lots. In no event, however, will the Sponsor be required to make a deficiency contribution in an amount greater than the Sponsor would otherwise be liable for if it were paying Assessments on Unsold Homes or Lots on the same basis as other Members. Section 5.03 Purpose of Maintenance Assessments The purpose of the Maintenance Assessments shall be to satisfy the costs and expenses of the operation, maintenance, repair, replacement and improvement of the Association and its Property, and the promotion of the health, safety and welfare of the Members, including but not limited to the following costs and expenses: (a) taxes imposed on the Association and its Property, if any; (b) any utility services to the Property which are commonly metered or billed; (c) all premiums for liability and other insurance covering the Association Property, and the Association, its officers, Directors, Members and employees obtained pursuant to the By-Laws; 12 (d) the maintenance, repair and replacement of the Association Property; (e) labor, equipment and materials for, and the management and supervision of, the Association and its Property; (f) accounting and record keeping of all Association financial transactions; and (g) such other needs as may arise from time to time which the Board of Directors deems appropriate or desirable to meet. Section 5.04 Date of Commencement and Notice of Assessments The Assessments provided for herein shall commence on the day on which title to the first Home is conveyed by the Sponsor to the initial purchaser thereof. The first assessment shall be adjusted according to the number of months remaining in the fiscal year as established by the Board of Directors and such Assessments shall thereafter be on a full year basis. Section 5.05 Change in the Basis of Assessments (a) The Association may change the basis of determining the Assessments by obtaining the vote of not less than two-thirds (2/3rds) of all Members, except that until the Transfer of Control Date, any change in the Basis of Assessments which adversely affects the interests or rights of the Sponsor with respect to Unsold Homes shall require the prior written consent of the Sponsor. Written notice of the proposed change shall be sent to all Members at least thirty (30) days in advance of the date or initial date set for voting thereon. A written certification of any such change shall be executed by the Board of Directors and recorded in the Office of the Clerk of the County of Saratoga, New York. (b) Any change in the Basis of Assessments shall be equitable and nondiscriminatory. Section 5.06 Special Assessments for Capital Improvements (a) In addition to the Maintenance Assessments, the Association may from time to time levy Special Assessments, payable in the year levied and/or the following year only, for the purpose of defraying, in whole or in part, the cost of any capital improvements, including without limitation, the construction, reconstruction, replacement, or repair of a capital nature to the Association Property, including the necessary fixtures and personal property related thereto; provided that for any Special Assessment for the construction (rather than reconstruction or replacement) of any capital improvement and for any Special Assessment amounting to more that one hundred percent (100%) of the then current amount of Maintenance Assessments, the consent of at least two-thirds (2/3rds) of the Members who are present in person or represented by proxy at a meeting duly called for such purpose must first be obtained. (b) Written notice of such vote shall be given to all Members at least thirty (30) days in advance setting forth the purpose of the meeting. The Association shall establish one or more due dates for each payment or partial payment of each Special Assessment and shall notify each Member liable therefor in writing at least thirty (30) days prior to such due date or dates. 13 Section 5.07 Assessments: Personal Obligations of the Member and Lien on Home (a) The Assessment shall be paid when due. If the Assessments are not paid within ten (10) days of the date when due, the Board of Directors may impose a late charge in such amount the Board shall deem reasonable (not to exceed ten percent (10%) of the amount past due or the maximum amount allowed by law, whichever is less) provided such late charges are equitably and uniformly applied. All sums assessed by the Board of Directors but unpaid, together with any accelerated installments, late charges and Assessments for violations of the Rules and Regulations with interest hereon at such rate as may be fixed by the Board of Directors, from time to time (such rate not exceed the lesser of sixteen percent (16%) or the maximum rate of interest then permitted by law), shall be the personal obligation of a Member and shall constitute a lien upon the Member’s Home prior to all other liens except: (1) tax or assessment liens on the Home by any governmental authority, including but not limited to state, county, city and school district taxing agencies; and (2) all sums unpaid on any First Mortgage of record encumbering any Home. Interest on Assessments and other amounts due hereunder shall begin to accrue on the 10th day after the date on which such Assessments or other amounts were due. (b) Assessments shall be levied on an annual basis and shall be due and payable in monthly installments, each to be paid within ten (10) days of its due date. Payments received after ten days after the due date may be assessed a late fee. If the Assessment is not paid within thirty (30) days from date due, the Board of Directors may commence appropriate legal proceedings, including a foreclosure action. All costs and expenses incurred in collection of past due Assessments, including reasonable attorneys’ fees, shall also be the personal obligation of the Member and a lien against the Home. (c) Any amounts collected with respect to past due Assessments shall be applied in the following order: attorney’s fees, other costs of collection, interest, late charges and the balance, if any, to the Assessments in inverse order of their due dates. Section 5.08 Foreclosure of Lien for Past Due Assessments The lien for past due Assessments may be foreclosed by the Association in accordance with the laws of the State of New York, in like manner as a mortgage on real property. The Association shall also have the right to recover all costs incurred by it in pursuing such right including reasonable attorneys’ fees. Assessments and costs incurred by the Association, including reasonable attorneys’ fees, shall constitute a lien against the Home. In any such foreclosure action the Home Owner shall be required to pay a reasonable rental for the Home for any period prior to sale pursuant to judgment of foreclosure and sale, and the plaintiff in such foreclosure shall be entitled to the appointment of a receiver to collect the same. In the event the proceeds of the foreclosure sale are not sufficient to pay such unpaid Assessments, the unpaid balance shall continue to be the personal obligation of the Home Owner. However, where a First Mortgagee of record, or other purchaser of a Home at a foreclosure sale of a First Mortgage, obtains title to the Home as a result of foreclosure, such acquirer of title, its successors or assigns, shall not be liable for, and the Home shall not be subject to, a lien for the payment of Assessments chargeable to such Home which were assessed and became due prior to the acquisition of title to such Home by such acquirer. In such event, the unpaid balance of Assessments shall be charged equally to all other Home Owners. A suit to obtain a money 14 judgment for past due Assessments may be maintained without foreclosing or waiving of the lien securing the same. Section 5.09 Notice of Default The Board of Directors, when giving notice to a Member of a default in paying Assessments or any other default, may, at its option, or shall, at the request of a First Mortgagee, send a copy of such notice to the First Mortgagee of such Home. The First Mortgagee shall have the right to cure the Member’s default with respect to the payment of said Assessments or other default which could result in the creation of a lien against the Home. Section 5.10 No Exemption or Waiver of Assessments Every Member shall pay the Assessments assessed against his Home when due and no Member may exempt himself from liability for the payment of Assessments by waiver of the use or enjoyment of any of the Association Property or by the abandonment of his Home. However, no Member shall be liable for the payment of any Assessments accruing subsequent to a sale, transfer or other conveyance by him of such Home made in accordance with the Real Property Law or in accordance with the provisions of this Declaration and the By-Laws. Section 5.11 Grantee to be Liable with Grantor for Unpaid Assessments In any conveyance of a Home either by voluntary instrument, operation of law or judicial proceeding in accordance with this Declaration or the By-Laws, the Grantee of the Home shall be jointly and severally liable with the Grantor for any unpaid Assessments against the latter, assessed and due up to the time of the grant or conveyance without prejudice to the Grantee’s right to indemnification from the Grantor therefor. “Grantee” as used herein shall not include either a First Mortgagee or a purchaser of a Home at a foreclosure sale of a First Mortgage or a Person who obtains title to a Home by means of a deed in lieu of foreclosure. Section 5.12 Right to Maintain Surplus The Association shall not be obligated in any calendar year to spend all the sums collected by it in such year by way of Assessments or otherwise, and may carry forward as surplus any balances remaining; nor shall the Association by obligated to apply any such surpluses to the reduction of the amount of the Assessments in the succeeding year, but may carry forward from year to year such surplus as the Board of Directors, in its absolute discretion, may determine to be desirable for the greater financial security and the more efficient effectuation of the purposes of the Association. Section 5.13 Assessment Certificates Upon written request of a Member or lessee with respect to a Home which he owns or leases, (or any prospective purchaser, lessee, occupant, mortgagee or title insurer of such Home), the Association shall, within a reasonable period of time, issue and furnish a certificate signed by an officer or designee of the Association setting forth with respect to such Home as of the date of such certificate (a) whether the Assessments, if any, have been paid, (b) the amount of such Assessments, including interest and costs, if any, due and payable as of such date, and (c) whether any other amounts or charges are owing to the Association (e.g. for the cost of extinguishing a violation of this Declaration, the By-Laws or the Rules and Regulations). A reasonable charge, as determined by the Board of Directors, may be made for the issuance of 15 such certificates. Any such certificate, when duly issued as herein provided, shall be conclusive and binding with regard to any matter therein stated as between the Association and any bona fide purchaser, lessee, mortgagee, or title insurer of the Home with respect to which such certificate has been issued. ARTICLE VI MAINTENANCE BY THE ASSOCIATION Section 6.01 Repairs and Maintenance by the Association (a) Except as specifically otherwise provided in this Section 6.01, all operation, maintenance, repairs, and replacements of Association Property, including, without limitation, any Association Property situate on the Lots or any property dedicated to the City of Saratoga Springs pursuant to easement, shall be the responsibility of, and shall be undertaken at the cost and expense of the Association. (b) Subject to the provisions of Section 6.02 hereof, the cost of all maintenance, repair or replacement of Association Property performed by the Association shall, to the extent not covered by insurance, be funded by and through Assessments. (c) The Board of Directors may, by resolution, expand or contract the scope of services to be performed for the benefit of the Lots as described above provided such proposed expansion or contraction of the scope of services is first approved by a two-thirds majority of all Owners voting in person or by proxy at a meeting of the Owners., and in such case the Maintenance Assessments for the Lots shall be adjusted to reflect such changes in the scope of services provided for the benefit of the Lot Owners. Section 6.02 Repairs and Maintenance Which Are Not the Responsibility of the Association (a) Except as otherwise provided in Section 6.01 above, the Association shall not be responsible for the maintenance, repair or replacement of any structures or landscaped areas for which the Association does not have a maintenance easement. (b) Any repair or replacement made to the Association Property pursuant to Section 6.01 above, but which is occasioned by a negligent or willful act or omission of a Member or the Sponsor shall be made at the cost and expense of such Member or the Sponsor, as the case may be. If such maintenance, repair or replacement is performed by the Association, it shall not be regarded as a common expense but shall rather be considered a special expense allocable to the Member’s Home. Such expense shall be added to that Member’s Assessment and, as part of that Assessment, shall constitute a lien on the Home to secure the payment thereof. Section 6.03 Alterations, Additions or Improvements to the Association Property Except as otherwise provided in this Declaration, including Section 5.06 relating to Special Assessments for capital improvements, or in the By-Laws, all necessary or desirable alterations, additions or improvements in or to any of the Association Property shall be made by the Board of Directors, and the cost and expense thereof shall constitute an Association expense. 16 ARTICLE VII INSURANCE AND RECONSTRUCTION Section 7.01 Insurance to be Carried by the Association. The Board shall obtain and maintain the following types of insurance coverage: (a) general liability insurance; (b) Director's and Officers' liability insurance; (c) fidelity bond; and (d) workers' compensation insurance (when, as and if required by law). To the extent determined by the Board to be obtainable at a reasonable cost, the coverages shall be as follows: (a ) General Liability. The liability insurance shall cover the Association, the Directors and officers of the Association and all Owners, but not the liability of the Owners arising from occurrences from such Owner's Home or on such Owner's Lot. The policy shall include the following endorsements: (1) comprehensive general liability (including libel, slander, false arrest and invasion of privacy); (2) personal injury (including death); (3) medical payments; (4) cross-liability under which the rights of a named insured under the policy shall not be prejudiced with respect to such insured's action against another named insured; (5) "severability of interest" precluding the insurer from denying coverage to any Owner because of negligent acts of the Association or any other Owner; (6) contractual liability; (7) water damage liability; (8) hired and non-owned vehicle coverage; (9) liability for the property of others; (10) host liquor liability coverage with respect to events sponsored by the Association; and (11) deletion of the normal products exclusion with respect to events sponsored by the Association. 17 Until the first meeting of the Board elected by the Owners, this public liability insurance shall be in a combined single limit of at least $2,000,000 covering all claims for bodily injury and property damage arising out of a single occurrence. (b) Directors' and Officers' Liability. (1) The Directors' and Officers' liability insurance shall cover the "wrongful" acts of a director or officer of the Association. The policy shall be on a "claims made" basis so as to cover all prior officers and members of the Board and any deductible provisions shall apply only to each occurrence, and not to each item of damage. Until the first meeting of the Board elected by the Owners, the coverage shall be in a combined single limit of at least $2,000,000. (2) Notwithstanding anything in this Declaration to the contrary, until the Transfer of Control Date, Directors' and Officers' liability insurance shall be obtained only with the prior written consent of the Sponsor. (c) Fidelity Bond. (1) The fidelity bond shall cover all directors, officers and employees of the Association, if any, who handle Association funds. The bond shall name the Association as Obligee and be in an amount not less than the estimated maximum of funds, including reserves, in the custody of the Association at any given time, but in no event less than a sum equal to six months aggregate assessments on all Homes, plus the reserves and other funds on hand. In the event a professional property manager is employed or retained by the Association, such professional property manager, serving the Association under a contract (not as an employee of the Association) shall maintain a fidelity bond in the same amounts as herein required to be held by the Association, naming the Association as Obligee, and provide the Board with a certificate evidencing such coverage. The professional property manager, if named as an employee of the Association, shall then be added to the Association's bond. (2) Until the first meeting of the Board elected by the Owners, the coverage shall be $50,000 for dishonest acts and $50,000 for forgery. (d) Workers' Compensation. Workers' compensation insurance shall be obtained when, as and if required by law. Such insurance shall cover employees of the Association, if any, as well as any other person working on behalf of the Association, including the directors and officers of the Board. (e ) Other. The Board may also obtain such other insurance as it shall deem necessary or desirable from time to time, including additional "umbrella" 18 coverage. The Board shall not be liable for failure to obtain any of the coverages required by this Article X or for any loss or damage resulting from such failure. The deductible, if any, on any insurance policy purchased by the Board may be an Assessment. The Board of the Association may assess any deductible amount necessitated by the gross negligence or malicious act of an Owner against such Owner. The Association may pay the deductible portion for which such Owner is responsible, and the amount so paid, together with interest and costs of collection (including attorney's fees), shall be a charge and continuing lien upon the Home involved, shall constitute a personal obligation of such Owner and shall be collectible in the same manner as Assessments under Article V of this Declaration. The Board shall review all insurance policies and the coverage provided thereby at least annually to assure adequacy of coverage. Section 7.02. Restoration or Reconstruction After Fire or Other Casualty. In the event of damage to or destruction of any Association Property, insurance proceeds, if any, shall be payable to the Association. The Board shall be responsible for the disbursement of the proceeds to contractors engaged in the repair and restoration of such Association Property. Any cost of such repair and restoration in excess of the insurance proceeds shall constitute an Assessment and the Board shall assess all the Owners for such deficit. Section 7.03. Insurance To Be Carried By Owners. Each Owner shall, at such Owner's expense, obtain and maintain home owners insurance covering the full replacement cost of the Home, and liability insurance initially in the amount of not less than $500,000 per occurrence and $1,000,000 in the aggregate (with a deductible of no more than $2,500) for occurrences which result in personal injury (including death) or property damage. The Board may, from time to time, increase the minimum amount of insurance required to be maintained by Owners. Each Owner shall provide the Association with evidence of such coverages upon the anniversary of such policy, if requested in writing by the Board. Section 7.04. Actions Which May Increase Insurance Rates Prohibited. Under no circumstances shall an Owner permit or suffer anything to be done or left in such Owner's Home or omit to do anything which will increase insurance rates on Association Property or any other Owner's Home. The penalty for any and all violations shall be an Assessment against the Owner violating this provision in an amount equal to the increased rate and/or increased premiums. 19 ARTICLE VIII DURATION, ENFORCEMENT AND AMENDMENT OF DECLARATION Section 8.01 Duration This Declaration shall continue until such time as withdrawal of the Property from the provisions of this Declaration is authorized by an affirmative vote of Owners by at least eighty percent (80%) of Authorized Votes. No such vote shall be effective without written consent of at least fifty one percent (51%) of the holders of first mortgages on the Homes, if any. The Sponsor will not vote its interests appurtenant to Unsold Homes or Lots for such withdrawal unless at least eighty percent (80%) of all other Owners so elect for such withdrawal, at which time Sponsor may vote as it sees fit. Notwithstanding the foregoing, withdrawal of the Property from the provisions of this Declaration shall require the prior approval of the City of Saratoga Springs. Section 8.02 All Owners, Tenants and Occupants Are Subject to Declaration which Runs with the Land All present or future Owners, tenants, occupants, or any other Person that might use the Lots, Homes or the Association Property, in any manner, are subject to the provisions of this Declaration, the By-Laws, and the Rules and Regulations, as they may be amended from time to time. The acceptance of a deed or conveyance or the entering into of a lease, or the occupancy of any Lot or Home shall, without more, signify that the provisions of this Declaration, the By- Laws and Rules and Regulations are accepted and ratified by such Owner, tenant or occupant. All provisions of this Declaration shall be deemed and taken to be covenants running with the land and shall bind any Person having at any time any interest or estate in the Homes or Lots, as though such provisions were recited and stipulated at length in each and every deed or conveyance or lease thereof. Section 8.03 Abatement (a) In the event that any Owner shall violate or breach any of the provisions of this Declaration, the Rules and Regulations, or the By-Laws on his part to be observed or performed, the Board of Directors shall enjoin, abate or remedy the continuance or repetition of any such violation or breach by appropriate proceedings or by self-help provided no breach of the peace is reasonably anticipated. (b) The violation or breach of any of the terms of this Declaration, the Rules and Regulations, or the By-Laws with respect to any of the rights, easements, privileges or licenses granted to the Sponsor shall give to the Sponsor the right to enjoin, abate or remedy the continuance or repetition of any such violation or breach by appropriate proceedings. Section 8.04 Rules and Regulations In addition to the restrictions set forth herein and in the By-Laws, Rules and Regulations concerning the use of the Lots, Homes and the Association Property may be promulgated and amended from time to time by the Board of Directors provided that copies of such Rules and Regulations are mailed or delivered to each Owner not less than five (5) days prior to the time that they become effective. Any Rule or Regulation may be rescinded by vote of a majority of the Owners at a meeting duly called for such purpose. Notwithstanding any of the foregoing, 20 no Rule or Regulation may be implemented which shall serve to negate or modify any of the provisions contained in Section 4.05 of this Declaration without complying with all requirements necessary to amend this Declaration as set forth in Section 8.09 hereof. Section 8.05 Enforceability, Penalties and Fines (a) The provisions of this Declaration shall bind all lands brought under the scope hereof and all Members and their Lots and Homes, and shall be construed as running with the land and shall inure to the benefit of and be enforceable by the Sponsor and the Association (being hereby deemed the agent for all of its Members), and by any Member, their respective legal representatives, heirs, successors and assigns, by actions at law or by suits in equity. As it may be impossible to measure monetarily the damages which may accrue to the beneficiaries hereof by reason of a violation of this Declaration, any beneficiary hereof shall be entitled to relief by way of injunction or specific performance, as well as any other relief available at law or in equity, to enforce the provisions hereof. (b) In the interest of public health, safety and welfare, the City of Saratoga Springs (including, but not limited to, the City Attorney, the Planning Board, Zoning, Code Enforcement, Zoning Department, or the Building Department) shall have the right, but not the obligation, to enforce the provisions of this Declaration which relate to the use, maintenance, and repair obligations of the Association and all restrictions contained herein, in the event that the Association, after demand by the City of Saratoga Springs, fails or refuses to enforce any provision of this Declaration with respect to the foregoing matters within the time limit required by the City’s demand. The City of Saratoga Springs shall be entitled to an award of its reasonable attorneys’ fees in the event of enforcement action, and in such event the City shall have the right to file a notice of lien against the responsible Lot Owner(s) and to enforce the lien in the same manner prescribed in Article V for the Association. The rights of the City of Saratoga Springs granted herein are in addition to the rights granted to the Corps of Engineers, the U.S. Department of Justice and the City of Saratoga Springs in Section 4.05 of this Declaration. (c) In addition or as an alternative to an action at law or suit in equity, the Board of Directors may, with respect to any violation of this Declaration, the By-Laws or the Rules and Regulations of the Association, and after affording the alleged violator a reasonable opportunity to appear and be heard, establish monetary and non-monetary penalties, the amount and/or severity of which shall be reasonably related to the violation and to the aim of deterring similar future violations by the same or any other Person. Monetary penalties imposed against a Member or occupant of a Member’s Home shall be deemed an Assessment against the Home of such Member and, as such, shall be a charge and continuing lien upon such Home or Lot, shall constitute a personal obligation of the Member and shall be collectible in the same manner as Assessments under Article V of this Declaration. Section 8.06 No Waiver by Failure to Enforce The failure of any beneficiary hereof to enforce any provision of this Declaration shall in no event be construed as a waiver of the right by that beneficiary or any other beneficiary to do so thereafter, as to the same or a similar violation occurring prior or subsequent thereto 21 Section 8.07 Obligation and Lien for Cost of Enforcement by Association If the Association or the City of Saratoga Springs successfully brings an action to extinguish a violation or otherwise enforce the provisions of this Declaration, the By-Laws, or the Rules and Regulations, the costs of such action, including reasonable attorney’s fees, shall become a binding, personal obligation of the violator. In addition, if the Association or the City of Saratoga Springs incurs any legal fees in compelling a violator to comply with the provisions of the Declaration, the By-Laws, or the Rules and Regulations but such compliance is achieved without commencing an action, such violator shall nevertheless be responsible for the payment of the Association’s or the City of Saratoga Springs’ reasonable attorneys’ fees as part of the costs of enforcement as herein provided. If such violator is (a) a Member, or (b) any family member, tenant, guest or invitee of the Member, or (c) a family member of any guest or invitee of the tenant of the Member, or (d) a guest or invitee of (1) any member of such Member’s family or (2) any family member of the tenant or such Member, such cost shall also be a lien upon the Home owned by the Member. Section 8.08 Self-Help Abatement In addition to commencing a legal or equitable action to compel compliance or enjoin any violation of any provision of the Declaration, the By-Laws or the Rules and Regulations, the Association may abate any violation by self-help provided that no breach of the peace is reasonably anticipated to occur by reason of such self-help abatement. Section 8.09 Amendment (a) Subject to Subparagraphs (b), (c), (d) and (e) of this Section, this Declaration may be modified, altered or amended at any duly called meeting of Members provided that: (1) A notice of the meeting containing a full statement of the proposed modification, alteration or amendment has been sent to all the Members as listed on the books and records of action, no less than thirty (30) days nor more than fifty (50) days prior to the date of the meeting; and (2) Sixty-six and two-thirds percent (66 2/3%) or more of all Members approve the change; and (3) An instrument evidencing the modification, alteration or amendment is duly recorded in the Office of the Clerk of Saratoga County, New York. Such instrument need not contain the written consent of the required number of Members, but shall contain a certification by the Board of Directors of the Association that the consents required by this Section for such modification, alteration or amendment have been received and filed with the Board of Directors. (4) The provisions of Section 4.05, Wetlands Protection, may not be amended without the written consent of the City of Saratoga Springs and the amendment of the subdivision and site plan approvals. (b) Until the Transfer of Control Date, the prior written consent of the Sponsor shall be required for any modification, alteration or amendment which adversely affects a substantial interest or right of the Sponsor to become effective. 22 (c) Notwithstanding anything herein to the contrary, the Sponsor may, prior to the sale of the first Home and subject to the requirement that any changes to Section 4.05, Wetlands Protection, shall require the written consent of the City of Saratoga Springs, unilaterally (and without the consent of any Members or any other Person) modify, alter, amend or supplement this Declaration by recording in the Office of the Clerk of Saratoga County, New York an instrument containing such modification, alteration, amendment or supplement and executed by the Sponsor. Such instrument shall also recite that as of the date of the instrument there are no Owners in the Association other than the Sponsor. (d) Subject to the requirement that any changes to Section 4.05 of this Declaration shall require the written consent of the City of Saratoga Springs, the Sponsor hereby reserves the right, until the Transfer of Control Date, to amend and supplement this Declaration from time to time in any or all respects, without obtaining the consent of any Owner, the Association, Mortgagee, First Mortgagee, or any other party; provided, however, in such event no substantive provision shall be changed which will adversely affect the priority or validity of any lien upon or the value of any Home. Further, subject to the requirement that any changes to Section 4.05 of this Declaration shall require the written consent of the City of Saratoga Springs, Sponsor hereby reserves the right to execute on behalf of all Purchasers, Owners, Mortgagees, First Mortgagees, or parties claiming a legal or equitable interest in the Property, any agreements, documents or amendments or supplements to this Declaration, the Certificate of Incorporation or the By-Laws of the Association or to any other agreements or documents contemplated thereby, which may be required by any First Mortgagee, by any governmental agency having jurisdiction over the Property or by any title insurance company insuring any title to any Home(s). By acceptance of a deed to any Home or by the acceptance of any other legal or equitable interest in the Property, each and every Purchaser, Owner or occupant, Mortgagee, other lienor, does automatically and irrevocably name, constitute, appoint and confirm Sponsor, its successors and assigns, as attorney-in-fact for the purpose of executing any amended or supplemental Declaration(s) or other instrument(s) necessary to effect the foregoing (provided that such power of attorney may not be used to adversely affect the priority or validity of any lien upon or the value of any Home). The powers of attorney aforesaid are expressly declared and acknowledged to be coupled with an interest in the subject matter hereof and the same shall run with the title to any and all Homes and be binding upon the heirs, personal representatives, successor and assigns of any of the foregoing parties. Further, said powers of attorney shall not be affected by the death or disability of any principal and are intended to deliver all right, title and interest of the principal in and to said powers. (e) If any modification, alteration, amendment or supplement is necessary in the judgment of the Board of Directors or the Sponsor to cure any ambiguity or to correct or supplement any provision of this Declaration that is defective, missing or inconsistent with any other provisions hereof, or if such modification, alteration, amendment or supplement is necessary to conform to the requirements of applicable law, then at any time and from time to time the Board of Directors may effect an appropriate corrective amendment without the approval of the Owners upon receipt by the Board of an opinion from counsel to the effect that the proposed amendment is permitted by the terms of this paragraph. Each amendment of the 23 type described in this paragraph shall recite that it is being made in accordance with this paragraph. Section 8.10 Conflict with Municipal Laws This Declaration shall not be taken as permitting any action or thing prohibited by the applicable zoning laws, or the laws, ordinances, rules or regulations of any governmental authority, or by specific restrictions imposed by any deed or lease. Section 8.11 Attorney’s Fees Assessments Any party to a proceeding who succeeds in enforcing any covenant, condition or restriction or enjoining the violation of a covenant, condition or restriction against a Member (or such Member’s family member(s), tenant, lessee, licensee or invitee), shall be entitled to reasonable attorney’s fees Assessments against such Member. Section 8.12 Change of Conditions No change of conditions or circumstances shall operate to amend any of the provisions of this Declaration, and the same may be amended only in the manner provided herein. ARTICLE IX SELLING, MORTGAGING AND LEASING OF LOTS Section 9.01 Selling, Leasing and Mortgaging of Homes No Owner shall convey, mortgage, pledge or lease his Home unless and until all due and unpaid Assessments against his Home and any penalties and interest thereon shall have been paid to the Board of Directors. However, such unpaid Assessments may be paid out of the proceeds of the sale of a Home or by the Grantee. The provisions of this Section shall not apply to the acquisition, sale or lease of a Home by a mortgagee, mortgage insurer, mortgage guarantor or similar institution, who shall acquire title to such Home by foreclosure or by deed in lieu of foreclosure. Such provisions shall apply, however, to any purchaser from such mortgagee. Section 9.02 Book of First Mortgagees The Board of Directors shall maintain a book entitled “Book of First Mortgagees” in which shall be listed the name and address of First Mortgagees who have requested in writing to receive notices of any proposed amendments to this Declaration or of any monetary or other defaults by an Owner whose House or Lot is subject to the mortgage lien held by such First Mortgagee Section 9.03 No Severance of Ownership No Owner shall execute any deed, mortgage or other instrument conveying or encumbering title to such Owner’s Home or Lot without including the appurtenant Membership interest, it being the intention hereof to prevent severance of the membership in the Association 24 from the Home or Lot. Any such deed, mortgage or other instrument purporting to affect one or more of such interests, without including all such interests, shall be deemed to include the interest or interests so omitted, even though the latter shall not be expressly mentioned or described. No part of the appurtenant interest in the Association of any Lot or Home may be sold, transferred or otherwise disposed of, except as part of a sale, transfer or other disposition of the Home or Lot to which such interests are appurtenant, or as part of a sale, transfer or other disposition of such part of the appurtenant interest in the Association of all Homes or Lots. Section 9.04 Member Responsible for Tenants Any lease of a Home shall provide that the tenant shall comply in all respects with the terms of this Declaration, the By-Laws and Rules and Regulations, if any, of the Association. If a tenant is in violation of this Declaration, the By-Laws or Rules and Regulations, the Board of Directors shall so notify the Member owning such Home which such tenant occupies, in writing by certified mail, return receipt requested. If the violation is not cured or eviction proceedings not commenced by the Member against the tenant within fourteen (14) days after the Member has received notice of such violation, the Board of Directors may pursue any remedies which it may have pursuant to the Declaration, including taking steps to have the tenant evicted, and may assess the cost of the same as a charge against the Member’s Home. ARTICLE X GENERAL COVENANTS AND RESTRICTIONS Section 10.01 Restrictions on Use of Lots (a) Residential Purposes Only. The Association Property and the Homes shall be used for residential purposes only. The intent is that each Home shall not be occupied by more than one family. A single family residence is defined as a single housekeeping unit, operating on a non-profit, non-commercial basis among its occupants. (b) Prohibitions: Unless used in connection with the construction or sale of Homes by the Sponsor, maintenance of the Property, or with the prior written consent of the Board of Directors, the following shall not be permitted to remain on any portion of the Property or Lots: 1. Tents, shacks, trailers (or similar structures) boats or motorized vehicles used as a dwelling either temporarily or permanently. 2. Unregistered vehicles. (c) Maintenance and Care of the Home and Lot. The Homeowner/Lot Owner shall have the absolute obligation to properly maintain all areas and portions of the Lot and Home, keeping same free of rubbish and debris and clutter/junk at all times. This shall include lawn mowing, raking, fall and spring clean-up, and maintaining gardens and beds as to limit weeds. Use of leaf blowers shall be limited to the owned Lot, with no blowing of leaves or debris onto the street or onto neighboring properties. Nor shall snow or ice be pushed out onto the street or diverted toward or onto neighboring properties. 25 (d) Garbage, Trash, Litter. Trash, garbage, grass clippings and other waste shall not be stored except for disposal and shall be kept in sanitary refuse containers which shall be placed inside the building, so that same is totally removed from public view of any nature. No permanent containers shall be stored outside of the home or garage. Sealed containers may be temporarily placed at curbside for refuse collection, but not for more than twenty-four (24) hours prior to the collection time and must be removed from curbside after collection by the end of such day. Recycling containers shall be stored in the same manner as refuse containers. Section 10.02 Use of the Property (a) Advertising and Signs. Except for signs erected by or with the permission of the Sponsor in connection with the initial marketing of Homes, no sign or other advertising device of any nature shall be placed for display to the public view on any Home, including the garage, in any window of any Home, on the Lots or other portion of the Property (except that temporary signs advertising Homes for sale may be displayed at the entrance of the Community, provided, however, such sign shall not exceed five (5) square feet in area. The Association, in addition to all other remedies available to it, may remove any sign that is in violation of this Section after giving the offending Member or other party 48 hours written notice and demand to remove such sign. (b) Noxious or Offensive Activities. No noxious or offensive activity shall be carried out upon any portion of the Property, in any Home, or on any Lot, nor shall anything be done thereon or therein that may be, or may become, a nuisance or annoyance to other Owners or occupants. (c) No temporary structures. No structure of a temporary character such as house trailers, campers, basements, tents, shacks, tree houses, garages, barns or other outbuildings shall be stored or kept on any Lot at any time, or used as a residence, either temporarily or permanently. No satellite dishes, short wave radio antennas or other type of antennas more than one meter in diameter or as otherwise permitted under the Federal Communications Commission’s Over-The-Air Reception Devices (“OTARD”) Rule or any successor or amended rule may be installed or stored on any Lot. No basketball hoops or other recreational equipment shall be permanently installed, however, moveable basketball backboard and post assemblies may be used, but when not in actual use must be kept inside the Home or in a garage. (d) No rubbish or trash. No lot, or any part thereof, shall be used or maintained as a dumping ground for rubbish or trash. No trash, garbage or other waste materials are to be kept or stored on any Lot unless kept in sanitary containers not visible from any road or street. ARTICLE XI GENERAL Section 11.01 Headings and Captions The headings and captions contained in this Declaration are for convenience only and shall not affect the meaning or interpretation of the content hereof. 26 Section 11.02 Severability The invalidity of any provision of this Declaration shall not be deemed to impair or affect in any manner the validity or enforceability of the remainder of this Declaration and, in the event any provision of this Declaration shall be, or be held to be, invalid or unenforceable, all of the other provisions of this Declaration shall continue in full force and effect as if such invalid or unenforceable provision had never been included herein. Section 11.03 Waiver No provision contained in this Declaration shall be deemed to have been abrogated or waived by reason of failure to enforce the same, irrespective of the number of violations or breaches which may occur. Section 11.04 Gender: Plural The use of the masculine gender herein shall be deemed to include the masculine, feminine or neuter and the use of the singular shall be deemed to include the plural; whenever the context so requires. Section 11.05 Notices All notices hereunder shall be in writing and, unless otherwise expressly provided herein, shall be sent by mail by depositing same in a post office or letter box maintained by the United States Postal Service, in a postpaid sealed wrapper, addressed, if to the Board of Directors, at the office of the Board of Directors, if to a Member or First Mortgagee, to the address of such Member or First Mortgagee, as to the case may be, at such address as appears on the books of the Association and if to the Sponsor, to the address of the Sponsor, as appears on the books of the Association. All notices shall be deemed to have been given when mailed, except notices of change of address, which shall be deemed to have been given when received. Whenever any notice is required to be given under the provisions of this Declaration, a waiver thereof, in writing, signed by the Person entitled to such notice, whether before or after the time stated therein, shall be deemed the equivalent of such notice. Section 11.06 Right of Association to Transfer Interest Notwithstanding any other provision herein to the contrary, the Association, its successors and assigns shall at all times have the absolute right to fully transfer, convey and assign all of its right, title and interest in and under this Declaration to any successor not-for- profit corporation or homeowners’ association, and upon such assignment, the successor corporation shall have all the rights and be subject to all the duties of the Association as set forth in this Declaration and shall be deemed to have agreed to be bound by all provisions hereof, to the same extent as if the successor corporation or trust had been an original party and all references herein to the Board of Directors shall be deemed to refer to the Board of Directors of such successor corporation or trust corporation or trust expressly assumes all the duties and obligations of the Association. If the Association, for any reason, shall cease to exist without having first assigned its rights hereunder to a successor corporation or trust, the covenants, conditions, restrictions, easements, charges, and liens imposed hereunder shall, nevertheless, continue and any Member may petition a court of competent jurisdiction to appointment a trustee for the purpose of organizing a not-for-profit Association; such corporation to exist 27 subject to the conditions provided for herein with respect to an assignment and delegation to a successor corporation or trust. AAADMC VENTURES LLC By:________________________________ Arthur Curto, Member State of New York } } ss.: County of _________} On the _________ day of __________ in the year 2026 before me, the undersigned, personally appeared Steve Cerrone personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual or the person upon behalf of which the individual acted, executed the instrument. Notary Public 9049 Bemis Point HOA Declaration - Working Draft CLEAN 6-2-26 28 SCHEDULE A Perimeter Description of All Lands of Bemis Point Homeowners’ Association, Inc. Made Subject to This Declaration 21.78± Acre Parcel All that parcel of land situate in the City of Saratoga Springs, County of Saratoga, State of New York as shown on a map entitled “_________________________” as prepared by ______________________, and being more particularly bounded and described as follows: Subject to any easements, restrictions and/or covenants of record, if any. 29 SCHEDULE B Easement Rights to be Conveyed to Bemis Point Homeowners’ Association, Inc. Attached Separately