HOA INFO - Monticello Place HOA

Note: This is the original text and may not contain changes and updates since May 2002

DECLARATION OF COVENANTS AND RESTRICTIONS

FOR

THE MONTICELLO PLACE HOMEOWNERS ASSOCIATION, INC.

South Euclid, Ohio

This Declaration of Covenants and Restrictions (hereinafter referred to as

"Declaration"), is made this fifth day of May, 2002 by and between WHITLATCH & CO., an Ohio

Corporation, having its principal place of business at 10800 Ravenna Road, Twinsburg, Ohio

44087 (hereinafter referred to as the "Declarant") as owner of property collectively known as The Monticello Park Subdivision, South Euclid, Cuyahoga County, Ohio, and THE MONTICELLO PLACE HOMEOWNERS ASSOCIATION, INC., an Ohio Nonprofit Corporation, having its principal office at 10800 Ravenna Road, Twinsburg, Ohio 44087

(hereinafter referred to as the "Homeowners Association").

WITNESSETH:

WHEREAS, Declarant is the owner of certain property described in Article II, Section 1 of this Declaration, (hereinafter referred to as the "Property") known as The Monticello Place Subdivision, South Euclid, Ohio, Plat of which is recorded in , Cuyahoga County Records; and; and

WHEREAS, Declarant has obtained a Conditional Use Permit for Monticello Place from the City of South Euclid Ohio for a Planned Unit Residential Development containing 38 individual single-family residential Lots and permanent open spaces and other Common Areas (hereinafter referred to as the "Common Areas and Facilities") for the benefit of the residents of Monticello Place as shown on The Site Plan of Monticello Place approved by the Planning Commission of the City of South Euclid and attached hereto as Exhibit A; and

WHEREAS, Declarant desires to provide for the preservation of the values and amenities in Monticello Place, and the permanent care and maintenance of said Common Areas and Facilities; and to this end, desires to subject the Property described in Article II,

Section 1, to the covenants, restrictions, charges and liens hereinafter set forth, each and all of which is and are for the benefit of said Property and each owner of a Lot located therein; and

WHEREAS, the Declarant has deemed it desirable for the preservation of the benefits and amenities of Monticello Place to create an agency, and to hereby delegate and assign to said agency the power and authority to care for and maintain areas over which easements may be reserved or granted, to own property that said agency may be granted, to administer and enforce the Covenants and Restrictions and the By-Laws of said agency, and to collect and disburse the Homeowners Association Assessments and other charges hereinafter created; and

WHEREAS, the Declarant has caused to be incorporated under the laws of the State of Ohio, The Monticello Place Homeowners Association, Inc. (hereinafter referred to as the "Homeowners Association"), an Ohio Nonprofit Corporation, as the agency to enforce and perform the aforesaid functions; and

WHEREAS, the Homeowners Association joins in this Declaration for the purpose of accepting the duties and responsibilities imposed upon it by the protective Covenants and Restrictions herein contained.

NOW, THEREFORE, the Declarant hereby declares that the Property described in Article II, Section 1 is and shall be held, transferred, sold, conveyed and occupied subject to the covenants, restrictions, easements, charges and liens (sometimes referred to as "Covenants and Restrictions") hereinafter set forth, and Declarant further specifies that this Declaration shall constitute covenants to run with the land and shall be binding upon the Declarant, its successors and assigns, the Homeowners Association, and all subsequent owners of all or any part of said Property, together with their grantees, successors, heirs, executors, administrators and assigns.

ARTILE I DEFINITIONS

The following words, when used in this Declaration (unless the context prohibits) and any amendments thereto, shall have the following meanings:

(a) "Monticello Place", or "Monticello- Place Subdivision" shall mean the Planned Unit Residential Development developed on the Property, including the Common Areas and Facilities and all Lots therein.

"Common Areas" shall mean the portion of the Property not included in individual "Lots".

(c) "Common Areas and Facilities" shall mean the portion of the Property eventually to be owned by the Homeowners Association which is to be devoted to the common and exclusive use of the Lot Owners within Monticello Place and to be improved with private streets, driveways, landscaping, open spaces, and other appurtenant improvements, and shall consist of all of the area of The Monticello Place Subdivision (the "Property") with the exception of the "Lots" shown thereon which are to be individually owned by the Lot Owners. The Common Areas and Facilities shall be conveyed by the Declarant to the Homeowners Association as defined herein.

(d) "Declarant" shall mean and refer to Whitlatch & Co. which is the owner of the

Property now being made subject to this Declaration.

(e) "Declaration" shall mean this "Declaration of Covenants and Restrictions for The Monticello Place Homeowners Association," all Exhibits thereto, and shall include any Amendments thereto.

(f) "Homeowners Association" shall mean The Monticello Place Homeowners Association, Inc. a Nonprofit Corporation organized by this Declaration of Covenants and Restrictions in order to administer the covenants, conditions, restrictions, rules and regulations created by this Declaration and created by any By-Laws with respect to Monticello Place.

(g) "Homeowners Association Assessments" shall mean the fee charged equally of all Lot Owners for the purpose of administering The Monticello Place Homeowners Association, Inc., for the repair and maintenance of all Common Areas owned by The Monticello Place Homeowners Association, Inc., and for the completion of all other duties and responsibilities herein and hereafter assigned to The Monticello Place Homeowners Association, Inc. Homeowners Association Assessments shall include both Annual and Special Assessments.

(h) "Homeowners Association Expenses" shall mean expenses incurred by The Monticello Place Homeowners Association, Inc. in the fulfillment of the duties and responsibilities assumed in carrying out the requirements of this Declaration and the By-Laws attached hereto as Exhibit C.

(i) "Lot" shall mean and refer to any sub-lot within Monticello Place (whether or not improved with a home) shown upon any recorded subdivision plat of the Property. It shall also mean and refer to any house or other structure erected on such lot.

(j) "Managers" shall mean the individuals selected and given authority to administer the affairs of the Homeowners Association, organized as stated in Article X, Section l, with duties as stated in Article X, Section 2.

(k) "Member" shall mean and refer to all those Lot Owners called Members of the

Homeowners Association as provided in Article III, Section l, of this Declaration.

(1) "Owner" shall mean and refer to the record owner, whether one or more persons or entities, of the fee simple title to any Lot situated upon the Property, but shall not mean or refer to a mortgagee thereof unless and until such mortgagee has acquired title pursuant to foreclosure, or any proceeding in lieu of foreclosure.

(m) "Planned Unit Development" shall mean a residential community which is created by a Plat and a Declaration of Covenants and Restrictions in which individual Lots and the homes constructed thereon are owned in fee simple by the respective Owner, and in which the Common Areas of said Planned Unit Development are owned in fee simple by the Homeowners Association.

(n) "Property" shall mean and refer to the entirety of The Monticello Place Subdivision, South Euclid, Ohio, as described in Article H, Section 1 herein. HADATATROJECT\Sou tth Eucl id\Assocociation\Dec larat -fmal.docPage 3 of 31 3/18/02

"Special Homeowners Association Assessment" shall mean a fee charged against each Owner of a Lot for improvements or other capital expenditure, for emergencies, operating, maintenance or repair costs, and for other costs and expenses not anticipated in determining the budget for the applicable Annual Homeowners Association Assessment.

"City" shall mean South Euclid, Ohio.

(q) "Trustees" shall mean the individuals selected and given authority to administer the affairs of the Community Association, organized as stated in Article X, Section 1 of the Declaration of Covenants and Restrictions for The Monticello Place Homeowners Association, Inc. with duties as stated in Article X, Section 2 therein.

ARTICLE II PROPERTIES SUBJECT TO THE DECLARATION

SECTION 1. Pro pert .

The real property which is and shall be held, transferred, sold, conveyed and occupied subject to this Declaration is located in South Euclid, Ohio, and is known as the entirety of The Monticello Place Subdivision, as recorded in , Cuyahoga County Records, subject to all legal highways. All of the aforesaid real property shall hereinafter be referred to as the

"Property."

SECTION 2. Restrictions on Development of The Property.

Declarant does hereby declare Monticello Place Subdivision shall be developed as a Planned Unit Development containing thirty-eight (38) detached single family homes on thirty-eight (38) individual Lots, and as such associated uses appurtenant thereto.

SECTION 3. Reservation of Rights to Offer Easements.

The Declarant, its successors and assigns, hereby reserves unto itself the right to grant any easements for the purpose of extending utilities on or though the Common Areas. Declarant shall have full right and authority to execute all instruments necessary and/or required by the accepting municipality or by any public or private utility to effect said utility easements. Such reservation of right to offer dedications and easements shall not require the consent of the Membership.

SECTION 4. Changes in Blocks and Lots.

The Declarant hereby reserves the right to make such changes in the boundaries of the Blocks and Lots therein with the approval of the City as required, provided that no such change may be made if the same would adversely affect the boundaries of any

Lot owned by any Owner other than • the Declarant, without the written consent of such

Owner.

ARTICLE III MEMBERSHIP AND VOTING RIGHTS IN THE HOMEOWNERS ASSOCIATION

SECTION 1. Membership.

The Declarant and each person or entity who is a record Owner of a fee or undivided fee simple interest in any Lot shall automatically be a Member of the Homeowners Association, provided that any such person or entity who holds such interest merely as a security for the payment of money or performance of an obligation shall not be a Member. When more than one (1) person holds such interest or interests in any Lot, all such persons shall be Members, but for quorum, voting, consenting, and all other rights of Membership, such persons shall collectively be counted as a single Member, and entitled to one (1) vote for each such Lot, which vote for such Lot shall be exercised as they among themselves may agree. Each such Member shall be jointly and severally liable for the payment of the Assessments hereinafter levied against any Lot.

Each Owner of a Lot shall remain a Member of the Homeowners Association until such time as his ownership shall for any reason cease, at which time his Membership in the Community Association shall likewise cease.

SECTION 2. Classes of Membership.

The membership of the Homeowners Association is and shall be divided into the two (2)

following classes:

(a) Class Members. The Class A Membership consists of every Owner of a Lot (other than Declarant), who shall automatically be a Class A Member.

(b) Class B Members. The Declarant shall be the sole Class B Member. Upon conveyance of a Lot the Declarant shall cease to be a Class B Member with respect to that Lot, and the grantee thereof shall be a Class A Member for such Lot. When seventy-five percent (75% ) of the Lots shall have been conveyed to Class A Members, the Declarant's Class B Membership shall cease and each Lot owned by the Declarant shall be deemed a Class A Membership.

SECTION 3. Voting>; Rights.

Members shall have only those voting rights in the Homeowners Association which are set forth below:

(a) Class Members. Each Class A Member shall be entitled to exercise one (1) vote for each Lot owned by such Class A Member.

(b) Class B Members. The Class B Member shall be entitled to exercise three (3) votes for each Lot owned by the Class B Member.

(P) "City" shall mean South Euclid, Ohio.

ARTICLE II PROPERTIES SUBJECT TO THE DECLARATION

SECTION 1. Pro pert .

"Property."

SECTION 2. Restrictions on Development of The Property.

SECTION 3. Reservation of Rights to Offer Easements.

SECTION 4. Changes in Blocks and Lots.

(c) Number, of Lots / Votes. At the time of this Declaration it is intended that there shall be a total of thirty-eight (38) Lots in Monticello Place. Therefore, when all Membership has converted to Class A Membership there shall be thirty-eight

(38) votes.

SECTION 4. Articles, Regulations, and By-Laws of the Homeowners

Association.

The Articles of Incorporation, By-Laws, and Rules and Regulations of the Homeowners Association may contain any provisions not in conflict with this Declaration, such as are permitted to be set forth in such Articles, By-Laws and Rules and Regulations by the Nonprofit Corporation law of the State of Ohio as it may be in effect from time.

ARTICLE IV

DUTIES OF THE HOMEOWNERS ASSOCIATION

SECTION 1. Responsibility for Installing and Maintaining Improvements.

The Declarant will install improvements within the Common Areas, and maintain all such improvements until such time as seventy-five percent (75%) of the Lots shall have been conveyed to Class A Members. From that time forward, the Common Areas, including any improvements thereon will be maintained by the Homeowners Association.

• SECTION 2. Duties of the Homeowners Association.

In addition to any other duties and responsibilities elsewhere herein set forth, the

Homeowners Association, acting through its Board of Managers, shall:

(a) promote the health, safety, welfare and recreation of the Members;

(b) improve, operate, maintain, and repair all Common Areas within the Property and all improvements thereon;

(c) fulfill the responsibilities and duties delegated to the Homeowners Association by this Declaration, the By-Laws, and the Rules and Regulations, and all amendments thereto, and

(d) perform such other services and take such other actions as are approved by the

Homeowners Association and are not inconsistent with this Declaration.

ARTICLE V COVENANTS AND

AGREEMENTS / HOMEOWNERS ASSOCIATION ASSESSMENTS

SECTION 1, Covenants and Agreements.

Declarant, its successors and assigns, by this Declaration, and all further Owners of Lots, by recording of their respective deeds, hereby covenant and agree as follows:

Administration of The Monticello Place Homeowners Association shall be in accordance with the provisions of this Declaration and the By-Laws of The Monticello Place Homeowners Association, which are made a part hereof and attached hereto as Exhibit "A."

Each Owner of a Lot or Lots shall automatically upon becoming Owner of such a Lot or Lots, become a member of The Monticello Place Homeowners Association, Inc., and shall remain a member thereof until such time as their Ownership shall for any reason cease, at which time their membership in the Homeowners Association shall likewise cease.

Each Lot Owner shall comply with the provisions of this Declaration and the By-Laws, and the decisions and resolutions of the Homeowners Association, all as may be lawfully amended from time to time. Failure to comply with such provisions, decisions or resolutions shall be grounds for an action for damages, for injunctive relief, or for both. Such action may be brought by the Homeowners Association, by an individual Lot Owner or group of Lot Owners, or by any combination thereof.

SECTION 2.

Obligation for Annual Homeowners Association Assessments or Special Homeowners Association

Assessments.

Each Owner shall pay his proportionate share of Annual Homeowners Association Assessments, any Special Homeowners Association Assessments, and other charges levied against a Lot owned by them in the manner and at such times as provided herein, and no Owner shall exempt themselves from the liability therefore by waiver of the use or the enjoyment of any of the Common Areas or by abandonment of his home or Lot. The purposes of the Homeowners Association Assessments are as follows:

An Annual Homeowners Association Assessment shall be for the purpose of

promoting the health, safety and welfare of the Members, the aesthetics of the community and, in particular, for the administration of the Homeowners Association through the employment by the Board of Managers of a Management Company to handle the day-to-day affairs of the Homeowners Association;

(ii) the continued operation, maintenance and repair of the Common Areas, primarily including, but not limited to:

installation, maintenance, alteration, replacement, and removal of landscaping within the Common Areas consistent with the original plantings and landscape plan approved by the City including, but not limited to, the cutting of lawn areas, the fertilization of all lawn and other plantings, the mulching, --watering, weeding, and maintenance of planting beds, and the pruning of trees, plantings, and hedges;

(2) maintenance of private streets and walkway pavement (excluding driveways extending from the private street to a dwelling's garage);

maintenance of all other improvements existing within the Common Areas;

(4) snow plowing of private streets, common drives and walkways, private driveways extending from the private street to a dwelling's garage, and mail collection points in and adjoining the Development as required by the City;

repair, maintain and replace entryway signs or monuments, if any, and provide for entryway landscaping;

(6) to maintain all piping, culverts, drains, and other facilities now or hereafter situated upon any portion of the Property that are not the responsibility of the City, which are intended for the collection, retention, detention, transmittal or disposal of storm-water in clean and sanitary condition and in good order and repair and to make all replacements and renewals necessary to so maintain the same. The cleaning, maintenance and repair of gutters, downspouts and other facilities attached to homes are the responsibility of the Owners of such homes;

to maintain the common portions of the water and sanitary sewer lines within the Property that are not the responsibility of the City, County or the governmental authority having jurisdiction over the sanitary sewer system.

In the event the Association fails to fulfill any of the above set forth responsibilities, the City shall have the right, but not the obligation, to do so, and the costs thereof, including reasonable attorneys fees, may be recorded as a lien on the title to the Common Areas and/or Lots, which may be foreclosed by court action initiated by the City. In addition, the City may bring an action at law against the Association, Owner or Owner of record of the affected Common Areas and/or Lots. Furthermore, the City shall have the right, but not the obligation, to undertake any action, including, but not limited to, the right of entry onto any Common Areas and/or Lot, whether or not ordinarily the responsibility of the Association, which the City, in its sole discretion, deems is necessary to prevent any imminent threat to the public health, safety and welfare.

Special Homeowners Association Assessments shall be for the purpose of. providing for improvements or other capital expenditures; for emergency, operating, maintenance, or repair costs; and for other costs and expenses not anticipated in determining the budget for the applicable Annual Homeowners Association Assessment.

The amount of the Homeowners Association Assessment shall be in the same for each Lot. All Annual Homeowners Association Assessments and Special Homeowners Association Assessments, together with interest thereon and any costs of collection as herein provided, shall be a charge upon each Lot. If such Annual Assessments and/or Special Assessments are not paid within thirty (30) days after their due date, interest thereon shall accrue at the rate of twelve percent (12% ) per annum, and such interest and any cost of collection shall be a lien upon the Lot and all improvements thereon. Each Annual Homeowners Association Assessment or Special Homeowners Association Assessment, together with interest thereon and the cost of collection thereof, shall also be the personal obligation of any person who was the Owner of such property at the time when such Annual Homeowners Association Assessment or Special Homeowners Association Assessment fell due and payable.

SECTION 3. Annual Homeowners Association Assessments.

The Annual Homeowners Association Assessment shall be levied by the Managers of the Homeowners Association prior to the date of the annual meeting of the Members, in such amounts as the Managers in their sole discretion shall deem reasonably necessary to meet expenses anticipated during the ensuing year, and as necessary for the creation of reasonable reserves for anticipated future operating or capital expenditures. At the annual meeting of the Members, the amount of the Annual Homeowners Association Assessment as levied by the Managers may be increased or decreased by the affirmative vote of Members entitled to exercise a majority of the voting power of the Homeowners Association. In no event, however, shall the Annual Homeowners Association Assessment for years beginning prior to January 1,

2004, exceed Six Hundred and 00/100 Dollars ($600.00) per Lot.

MONTHLY PER LOT ANNUALLY FOR 3 8 LOTS

Street Lighting _ $ 6.00 $2,736.00

Snow Plowing $ 15.00 $6,840.00

Landscaping $ 15.00 $6,840.00

Management Service $ 8.33 $3,800.00

Miscellaneous Operating/Insurance $ 3.00 $ 1,368.00

Reserves for Replacement $ 2.67 $ 1,216.00

TOTAL $ 50.00 ($ 600 / year) $22,800.00

SECTION 4. Commencement of Annual Homeowners Association Assessments:

Annual Homeowners Association Assessments shall commence as a charge upon each

Lot at the time the Lot is transferred by Declarant to a Class A Member. At such time as seventy five percent (75% ) of the Lots have been conveyed to Class A Members, Declarant shall pay the Annual Homeowners Association Assessment on any Lot then owned by it. Until such time as seventy five percent (75% ) of the Lots have been conveyed to Class A Members, Declarant shall only be requiredHADATATROJECT4South Eucl idWssociadon\De clarat-fmal. doc Page 9 of 31 3/18/02

to pay the difference between the Annual Homeowners Association Assessments paid by the Class A Members and the actual Homeowners Association Expenses incurred in the operation of the Homeowners Association.

SECTION 5. Special Homeowners Association Assessments.

Special Homeowners Association Assessments may be levied by the Homeowners Association from time to time at a meeting of the Members by the affirmative vote of Members entitled to exercise a majority of the voting power of the Homeowners Association and, if there be more than one (1) class of Membership, then by the affirmative vote of Members entitled to exercise a majority of the voting power of each class of Membership; provided however, that written notice shall be given to each Member at least thirty (30) days in advance of the date of such meeting stating that a Special Homeowners Association Assessment will be considered, discussed and acted upon at such meeting. Special Homeowners Association Assessments may, if so stated in the Resolution authorizing such Special Homeowners Association Assessment, be payable in installments over a period of months or years.

SECTION 6. Due Dates of Homeowners Association Assessments

Defaults.

The due date of the Annual Homeowners Association Assessment shall be January 1 st of each year, and said Assessment shall be payable in equal monthly installments due on the first day of each month for that year. The due date of any Special Homeowners Association Assessment shall be fixed in the Resolution of the Members authorizing such Special Homeowners Association Assessment, and written notice of such Special Homeowners Association Assessment shall be given to each Owner subject thereto at least sixty (60) days in advance of such due date. Once a Special Homeowners Association Assessment is authorized and notice is given, there shall be no requirement for additional notice prior to any installment which may be due, and such Special Assessment shall be a lien from such time as fixed in the Resolution authorizing such Special Homeowners Association Assessment.

SECTION 7. Homeowners Association Assessment Liens; Costs of

Enforcement.

If an Annual Homeowners Association Assessment or Special Homeowners Association Assessment, or installment of an Annual Homeowners Association Assessment or Special Homeowners Association Assessment, is not paid within thirty (30) days after same has become due and payable, interest thereon shall accrue at the rate of twelve percent (12%) per annum, and such interest and any cost of collection shall be a lien upon the Lot and all improvements thereon, which shall be prior to all other liens subsequently arising or created, except:

(a) Real estate taxes and assessment liens of record; and

First mortgage liens of record.

Such lien maybe foreclosed in the same manner as a mortgage on the Lot on behalf of all the • Owners by the President of the Homeowners Association, pursuant to the authorization of the

Managers of the Homeowners Association. During the pendency of any such foreclosure, such Owner shall be required to pay a reasonable rental for the Lot and all improvements thereon, and the Managers of the Homeowners Association shall be entitled to appoint a receiver to collect the same. The Managers, acting on behalf of all of the Owners, shall have the power to bid on the Lot at the foreclosure, and to acquire, hold, mortgage, and convey the same. Suit to recover a money judgment for unpaid Annual Homeowners Association Assessments or Special Homeowners Association Assessments may also be maintained without foreclosure or waiving the lien securing the payment of such Assessments.

An Owner (whether by his conduct, or the conduct of any occupant of an Owner's Lot) violating any provision in this Declaration or any rule adopted hereunder, shall pay to the Homeowners Association, in addition to any other sums due, all costs and expenses incurred by the Homeowners Association in connection with the enforcement of said provisions or rules, or collection of any delinquent account, including, but not limited to, attorneys' fees, recording costs, court costs, title reports, or any similar type of cost.

SECTION 8. Acquisition of a Lot at Foreclosure Sale; Effect.

Any first mortgagee who obtains title to a Lot pursuant to the remedies provided in the mortgage, a deed in lieu of foreclosure, or foreclosure, will not be liable for such Lot's unpaid assessments or charges which accrued prior to the acquisition of title to such Lot by the mortgagee. Any such unpaid share of common expenses or assessments shall be deemed common expenses collectible from all Lot Owners including the Lot acquired by such purchaser, their heirs, successors and assigns.

SECTION 9. Conveyance_ of Lots; Liability for Assessments.

Whenever a Lot is voluntarily conveyed, the Grantee shall be jointly and severally liable with the Grantor for all unpaid assessments levied by the Homeowners Association against the Grantor for his or her share of common expenses up to the time of conveyance without prejudice to the Grantee's right to recover from the Grantor any amount paid by the Grantee for such assessments. A Grantee shall be entitled to a statement from the Board of Managers of the Homeowners Association setting forth the amount of any unpaid assessments due the Association from the Grantor. Such statement shall be in the form of a "Certificate of Compliance and Status of Assessments" as shown in Exhibit B, and the Association may charge the Grantee a reasonable fee for the preparation of said statement. If such statement is requested, the Grantee shall not be liable for, nor shall the Lot conveyed to such Grantee be subjected to a lien for, any unpaid assessment due the Homeowners Association from the Grantor in excess of the amount set forth therein.

ARTICLE VI GENERAL RESTRICTIONS

SECTION 1. Minimum Requirements for Single Family Dwellings.

Each Lot within the Property shall be used only for the construction and maintenance of one detached, single family dwelling containing not less than a total of 1,600 square feet of living space, of which not less than 900 square feet shall be located on the first floor, and a two- car garage containing at all times not less than 200 square feet, and including such landscape improvements not in conflict with the restrictions herein. Such dwelling and any additions thereto shall be set back from the adjacent property lines not less than the distance indicated by the Building Line on the Plat of the Monticello Place Subdivision recorded in , Cuyahoga County Records, or, where no such distance is indicated on said Plat, the dwelling and that portion of it used as a garage shall be set back from the property lines not less than the distance indicated herein below:

(a) The minimum setback for a Dwelling shall be:

(b) (i) Twenty Feet (20'-0") from the edge of any sidewalk or pavement; and

(ii) Five Feet (5'-0") from a side Lot line between two Lots; and

(iii) A minimum of Ten Feet (10'-0") between units; and

(iv)Five Feet (5'-0") from a side Lot line between a Lot and the Common Area; and

(v) Twenty-Four Feet (24'-0") from the rear Lot line.

(b) The minimum setback for an attached garage shall be:

Twenty Feet (20'-0") from the edge of any sidewalk or pavement, with the average setback being not less than Twenty-five feet; and

(ii) Five Feet (5'-0") from any side Lot line; and

(iii) Twenty-Four Feet (24'-0") from the rear Lot line.

(c) Patios, decks, fences, and landscape structures are not permitted in front of the front building line of a dwelling, but may be located to the side or rear of a dwelling or garage, subject, however, to the provisions of Section 13 of this Article and any other such Rules and Regulation as may be established by the Board.

SECTION 2. No Signa e, Exceptions.

No sign or other advertising device of any nature shall be permitted to be placed upon the Property without the prior written approval of the Board of Managers of the Homeowners Association, except that this restriction shall not apply to signs placed by Declarant to promote the development and the sale of homes and Lots, to provide information to Owners and prospective purchasers, and to "For Sale" signs placed by a Lot Owner within the window of a home.HADATAIPROJECTSouth EuclidWssocia6on\Declarat-Snal.doc Page 12 of 31 3/18/02

SECTION 3. No Use Other Than Residential; Exceptions.

Within the Property, no Lot or dwelling thereon shall be used for other than single family residential purposes by a single household, nor shall any dwelling be used as a rooming house, guest house, or for any other purpose except:

(a) The Declarant or other builders/developers may use any Lot and the dwelling and garage thereon as a model home and/or sales center for as long as Declarant or the developer owns one or more Lots within the subdivision.

(b) A Lot Owner may use a portion of their dwelling for his or her office or studio subject to the following provisions:

Such use meets the requirements for a home occupation within the governing municipality; and

(ii) The minimum living area and garage area specified above shall not be reduced; and

(iii) Such use. does not interfere with the quiet enjoyment of any other Lot Owner or occupant; and

(iv) Such use is compatible with the residential character of the Property and does not result in the Lot and dwelling thereon becoming principally an office, studio or school distinct from a residence. The Homeowners Association Board of Managers may adopt rules which further limit such use.

SECTION 4. No Storage of Vehicles.

No commercial vehicle, boat, recreational vehicle, airplane, or vehicle of any kind, licensed or unlicensed, may be stored on any road or driveway in or upon the Property except as shall be approved by the Board of Managers of the Homeowners Association.

SECTION 5. No Discharge of Firearms.

No discharge of guns, ammunition or explosives will be permitted. No fishing, hunting, trapping or poisoning of wildlife is permitted, except for rodent or insect control, or upon prior written approval of the Board of Managers of the Homeowners Association.

SECTION 6. Restrictions on Motorized Vehicles.

No motorized vehicles (minibikes, motorcycles, mopeds, etc.) shall be permitted on the

Property (other than on private streets and public thoroughfares designed for vehicular travel).

SECTION 7. No Alternation of Common Areas.

The Common Areas may not be altered in any way without the written approval of the

Declarant, or the Board of Managers of the Homeowners Association.

SECTION 8. No Use or Storage of Hazardous Materials.

No Lot Owner shall keep, store, or use any hazardous or toxic substance or waste (as defined by applicable law or regulation) within their Lot or within the Common Areas without the prior written consent of the Board of Managers. Owners and occupants must not pour or spill any oil, solvent, or any other volatile or inflammable material into the storm sewers, garage catch basins, or Common Areas. The Ohio EPA prohibits such dumping.

SECTION 9. No Alteration of Exterior of Dwellings; Approval.

No additions, changes, installation, or improvement may be made to the exterior of any dwelling within the Property including without limitation, installation of any sign (except as permitted in Section 2 above), awning, canopy, fences, screen, shutter, external or outside antennas of any kind, satellite dish, sunroom, addition, skylight; or replacement of any window, door, siding material, roofing material; or alteration of any exterior material or change in any color of any exterior material including front door; shall be permitted without the prior written consent of the Board of Managers.

SECTION 10. Restrictions on Pets.

No animals shall be raised, bred or kept within in any Lot or within the Common Area and Facilities for any commercial purpose. Dogs, cats or other common household pets may be kept in a Lot subject to any rules that maybe adopted by the Board of Managers. Owners must cleanup after their pets. Pets cannot be tied in any Common Area and no stake poles or runs are to be placed in any Common Area. Pets must be confined to the Lot of their Owners and not allowed to roam free throughout other Lots or within the Common Areas.

SECTION 11. No Hanginjg of Laundry.

No clothing or any other household fabric shall be hung outside of any dwelling. SECTION 12. No Above Ground Swimming Pools.

No above ground swimming pools shall be installed on any Lot. SECTION 13. No Placement of Items in Common Areas.

No furniture, appliances, or other items are to be placed by Lot Owners within the

Common Areas except as allowed by the Board of Managers.

SECTION 14. Architectural Control.

No building, fence, wall or other structure shall be erected, placed, or altered within Monticello Place until the plans and specifications showing the nature, kind, shape, height, materials, colors and location of the same shall have been submitted to and approved by the Declarant in writing, to assure the harmony of external design and location in relation to surrounding structures and topography. Responsibility for "Architectural Control," as described above, will transfer from the Declarant to the Board of Managers for The Monticello Place Homeowners Association, Inc. upon completion of construction of all homes within the Development.

SECTION 15. Declarant's Right to Lease.

The Declarant shall have the right to rent or lease any Lot and the dwelling thereon remaining in its name until such time as the same are sold to individual purchasers.

SECTION 16. No :Subdivision of Any Lot.

No Lot Owner may partition or subdivide any Lot or dwelling thereon. SECTION 17. ' Adoption of Additional Restrictions; Amendment.

The Board of Managers of the Homeowners Association may adopt additional restrictions, or amend the restrictions as stated herein, with a majority vote of the Members.

ARTICLE VII PROPERTY RIGHTS IN THE COMMON AREAS

SECTION 1. Title to Common Areas.

All Declarant shall retain legal title to the Common Areas until such time as the construction[...] if dwellitime [...]t which time Declarant shall transfer title to the Common Areas to the Homeo-mmers Association_.. If title to the Common Areas is conveyed to the Homeowners Association before completion of all construction activities as described above, the Homeowners Association shall grant a construction easement to the Declarant as set forth in Section 5 of this Article.

SECTION 2. Members' Easement of Use and Enjoyment.

Subject to the provisions of this Declaration, every Member shall have a right and easement of enjoyment in and to the Common Areas, such easement shall be appurtenant to and shall pass with the title to every Lot.

SECTION 3. 'Additions to Common Areas.

The Declarant has the option of providing additional Common Areas and to subject such ‡ additional Common Areas to the Covenants and Restrictions of this Declaration and to the administration of the Homeowners Association.

SECTION 4. Extent of Members' Easements.

The rights and easements of enjoyment created hereby shall be subject to the following:

(a) The right of the Homeowners Association, in accordance with this Declaration to adopt uniform regulations governing the use of the Common Areas;

The right of the Homeowners Association to limit the number of guests of Members in or upon or within any of the Common Areas, or any buildings or facilities located thereon; and

(c) The right of the Homeowners Association to dedicate or transfer all or any part of the Common Areas to any municipality or public agency, authority or utility, for such purposes and subject to such conditions as may be determined at a meeting of the Members by the affirmative vote of Members entitled to exercise two-thirds (2/3) of the total voting power of the Homeowners Association.

SECTION 5. Declarant's Construction Easement.

Declarant hereby retains a construction easement over the entirety of the Common Areas

granting the Declarant, its agents, employees, successors and assigns the right to enter onto, over, and through the Common Areas and to thereon take all actions required to complete the construction of all improvements thereon, and to complete the construction of all improvements to Lots within the Property.

SECTION 6. Association's Maintenance, Drainage and Landscaping Easement Over

Lots.

Declarant hereby reserves to the Association a Maintenance, Drainage and Landscaping Easement over each and every Lot within the Property granting the Association, its agents, employees, successors and assigns the right to enter onto, over, and through each Lot and to thereon take all actions required to the maintain drainage swales and structures required and approved by the City and to complete the landscaping, maintenance, and other obligations of the Association as set forth in Article V, Section 2 herein.

SECTION 7. Eminent Domain.

(a) In the event that there is a taking of all or any portion of the Common Areas by eminent domain proceedings or by conveyance under the threat thereof, each Lot Owner designates the Homeowners Association and its duly authorized agents as the Lot Owner's agent to negotiate and settle all matters concerning the eminent domain.

The Declarant has the option of providing additional Common Areas and to subject such . additional Common Areas to the Covenants and Restrictions of this Declaration and to the administration of the Homeowners Association.

SECTION 4. Extent of Members' Easements.

The rights and easements of enjoyment created hereby shall be subject to the following:

(a) The right of the Homeowners Association, in accordance with this Declaration to adopt uniform regulations governing the use of the Common Areas;

The right of the Homeowners Association to limit the number of guests of Members in or upon or within any of the Common Areas, or any buildings or facilities located thereon; and

SECTION 5. Declarant's Construction Easement.

Declarant hereby retains a construction easement over the entirety of the Common Areas granting the Declarant, its agents, employees, successors and assigns the right to enter onto, over, and through the Common Areas and to thereon take all actions required to complete the construction of all improvements thereon, and to complete the construction of all improvements to Lots within the Property.

SECTION 6. Association's Maintenance, Drainage and Landsca>,ina Easement Over

Lots. Declarant hereby reserves to the Association a Maintenance, Drainage and Landscaping Easement over each and every Lot within the Property granting the Association, its agents, employees, successors and assigns the right to enter onto, over, and through each Lot and to thereon take all actions required to the maintain drainage swales and structures required and approved by the City and to complete the landscaping, maintenance, and other obligations of the

Association as set forth in Article V, Section 2 herein.

SECTION 7. Eminent Domain.

In the event that the entire Property or substantially all thereof is taken through eminent domain proceedings or the threat thereof, the Homeowners Association shall terminate. In that event, the Board of Managers shall cause to be paid, released or discharged all liens and encumbrances, except taxes and assessments not then due and payable, on all or any part of the Common Areas. The award or proceeds attributable to the taking of the Common Areas shall be apportioned equally among the Lot Owners in accordance with the number of Lots owned by said Owner.

In the event that substantially less than the entire Common Areas are taken by eminent domain proceedings or disposed of in lieu thereof, the Homeowners Association shall not terminate and the Board shall allocate and apportion the award or proceeds allocated to the taking of, or injury to, the Common Area and Facilities, including any consequential damages, and said shall bd distributed to the Association.

ARTICLE VIII

CITY AND GOVERNMENTAL REQUIREMENTS

SECTION 1. Standards for Construction: Dwelling Unit Requirements.

All Structures shall be constructed in accordance with applicable governmental building codes and zoning ordinances City. Each Dwelling Unit shall be constructed by Developer and shall consist of one of three or more basic floor plans, each of which has been approved by the City of South Euclid. Each such floor plan shall have three approved alternative elevations, and may be constructed on any lot within Monticello Place subject to the following requirements. Developer reserves the right, with the prior consent of the City to modify, substitute or add plans or materials as described in this Section 1, based upon market acceptance, constuctability or availability of materials, provided, however, that any substituted plans or materials shall conform to the overall architectural theme for the development and shall adhere to the architectural standards set forth by the City of South Euclid.

(a) Modified or substituted plans shall conform to the overall architectural theme of

Monticello Place and shall adhere to the architectural standards set forth by the City.

(b) The distance between the exterior walls of each dwelling unit shall: (i) be forty feet (40') apart when one of the adjacent walls contain a primary window(s) for a living area or has access to terraces, decks, or patios; and (ii) ten feet (10') apart if neither of the adjacent walls contain primary window(s) for any living area. As used in this Section, the term

"living areas" includes the following: bedrooms, dens, living rooms, great rooms or similar rooms. As used in this Section, the term "primary windows" shall mean any window on a wall of a living area, which wall has the largest amount of area in such living area.

(c) All Dwelling Units shall include a minimum of 1,600 square feet of living area and may include unfinished or finished and/or walkout basements. As used in the previous sentence, the term "living area" shall include all area within a Dwelling Unit, exclusive of any garage, attic, breezeway, unfinished basement, utility room, patio, deck or any other enclosed area not heated for year-round living. Each Dwelling Unit shall be a one or a one and one-half or two-story frame home. All dwellings shall be located not less than 20 feet from any sidewalk or pavement. Minimum distance between Dwelling Units shall be ten (10) feet.

(d) Building projections not requiring foundations (e.g. bay windows) which reduce the distance to not less than ten (10) feet are permitted.

Identical Units. Units and Dwelling Units that have significantly similar features shall be located at least two (2) lots away from each other when located on the same side of the street within the Property, and a minimum of two (2) lots away from each other when located across the street. There shall be no more than twelve (12) identical homes within the Property. Dwelling Units shall be considered to have significant similar features if such two (2) homes share identical color schemes or identical front elevations.

The colors of Dwelling Units shall be consistent with the color scheme approved by the

City throughout the Property.

(g) Exterior stairs shall be full width of the door.

(h) Each Dwelling Unit shall be landscaped in accordance with a landscaping plan approved by the City.

SECTION 2. Compliance with Citv Codes.

Each Owner shall comply with City, County and other governmental requirements. It is agreed that a violation of any such requirements or any restriction, condition, covenant or restriction imposed now or hereafter by the provisions of this Declaration as a nuisance per se can be abated by the Association or such governmental authority.

SECTION 3. Drainage Rights and Authority to Transfer Drainage and other Easements Rights to

City.

The Developer, each Owner, the Association and the City shall have the non-exclusive right and easement in common to utilize the waterways, courses, storm sewers, drainage pipes and retention basins in, over and upon Common Areas for the purposes of drainage of surface waters on the Property, said right-of-ways and easements being hereby established for said purpose. It shall be the obligation of the Association to properly maintain, repair, operate and control such drainage system on the Common Areas. Developer and (after transfer of the Common Areas) the Association shall have the right to grant easements for the installation and maintenance of sanitary sewers, storm sewers, drainage and swales to the City or other governmental authorities having jurisdiction. No owner shall in any way hinder or obstruct the operation or flow of the drainage system. No structures (including, but not limited to, sidewalks an driveways), plantings, or other materials shall be placed or permitted to remain within such easement areas which may damage or interfere with the installation and/or maintenance of such improvements in such easement areas or which may change, retard or increase the flow of water through the respective easement areas. The easement areas and all improvements therein shall be maintained and continuously by the Association unless those easement areas are accepted by the City or other governmental authorities having jurisdiction by formal action of the City or such governmental authority.

Each Owner shall maintain any drainage areas, Dwelling Unit storm drainage services and appurtenances located upon the Owner's Lot. The Developer, the Association, City or other governmental authority having jurisdiction shall have the right (but not the obligation) to enter upon a Lot to repair and maintain all storm, drainage, courses, ditches, structures and appurtenances for the purpose of relieving any flooding condition or threatened flooding condition which might be harmful to the Property or other property within the City, and to assess the cost of such repair or maintenance to the Owner of such Lot. The City or other governmental authority having jurisdiction shall have the right (but not the obligation) to enter upon any of the Areas of Common Responsibility of the Property to repair and maintain all storm, drainage, courses, ditches, structures and appurtenances for the purposes of relieving any flooding condition or threatened flooding condition which might be harmful to other property in the City, and to assess the cost of such repair or maintenance to the Association.

SECTION 4. Rights of City to Assess for Charges posed by The City of Cleveland, Division of

Water.

In the event that The City of Cleveland, Division of Water charges the City for any repair of any fire hydrant, water main or distribution line servicing the Property, the City may assess the Association the appropriate charge for such repair. The Association shall pay any charge and may assess each Owner such Owner's proportionate share of such charge as a Special Assessment. SECTION 5. Restriction on Dissolution of Association or the Sale, Transfer, or other Disposal of

Common Area.

The Association shall not authorize its dissolution or permit the sale, transfer or other disposal of any Areas of Common Responsibility without: (i) an affirmative vote of seventy-five (75) percent of the members of the Association; (ii) having established a successor entity to be responsible for the Areas of Common Responsibility in the Property; and (iii) the approval of the City Council of the City.

SECTION 6. Acknowledgement Regarding Private Roadways.

Each owner, upon taking title to such Owner's Lot, shall acknowledge that such Owner understands that the Dwelling Unit located on such Owner's Lot will be located upon a non- dedicated, private street or common drive. Further, each Owner shall acknowledge that such Owner understands that no government body is responsible for care and maintenance of such private street or common drive. To give effect the provisions of this Section, each deed conveying any Lot from the developer to an Owner shall include the following language:

The grantee(s) hereby acknowledge(s) that he/she/they understand that the premises described herein is located upon a non-dedicated private street or common drive. And further, the grantee(s) understands that no government body is responsible for care and maintenance of said private street or common drive.

SECTION 7. Enforcement Rights and Third Party Beneficiaries Rights of the City.

The City shall have the right to proceed against the Association for reimbursement of costs expended by the City pursuant to this Article, in which event the Association shall collect Assessments from its Members and remit the proceeds of such Assessments to the City. Furthermore, the City is a third party beneficiary of the rights of the Association with respect to matters of concern to the City under this Declaration; provided, however, if the City's zoning, building or other requirements of ordinances and general law are more restrictive than these covenants and restrictions, the City's requirements shall prevail. No provision of this Article may be amended without the prior written consent of the City.

SECTION 8. Conflict Between Declaration and City Ordinance.

In the event provisions ih this Declaration and provisions of a City Ordinance apply to a situation, then the more restrictive provision shall apply.

SECTION 9. Emergency and Service Easements.

. There is hereby granted to the City an easement for access to the Common Areas for emergency purposes or in the event of nonperformance of maintenance or improvements affecting the public interest. The City shall have the right, after proper

notice, to perform maintenance functions to such areas with the costs thereof levied as a lien against the Common Areas. Advance notice is not required for emergency entrance onto the Common Areas.

ARTICLE IX BREACH OF COVENANTS AND RESTRICTIONS: REMEDIES OF THE HOMEOWNERS ASSOCIATION AND THE COMMUNITY ASSOCIATION

SECTION 1. Breach of Covenants and Restrictions of the Community Association or

Homeowners Association.

When any breach of either the Covenants and Restrictions of The Monticello Place Homeowners Association (the "Homeowners Association") occurs within the Property, the Homeowners Association, through its Board of Managers, shall have the primary responsibility for correcting said breach.

SECTION 2. Breach of Covenants and Restrictions - Remedy of the Homeowners

Association.

If the Managers of the Homeowners Association, after giving reasonable notice to the Owner of a Lot, and providing for reasonable opportunity for such Owner to be heard, determine by the affirmative vote of two-thirds (2/3) of the authorized number of Managers that a breach of any protective Covenant or Restriction has occurred, then, after giving such Owner notice of such determination by certified mail, the Homeowners Association, through its duly authorized agents or employees, may enter upon the Lot involved and correct such breach of covenant by reasonable means. The cost of such correction of a breach of covenant shall be assessed against the Lot upon which such corrective work is done, and shall become a lien upon such Lot and all improvements thereon, and shall become the obligation of the Owner, and shall become immediately due and payable, all as provided in Article V hereof.

Any Owner of a Lot affected by such a determination of the Managers to correct a breach of any Covenant or Restriction pursuant to this Section may, within ten (10) days after the date of the mailing of the certified mail notice of such determination, appeal such determination to the Members by sending a Notice of Appeal to the President or Secretary of the Homeowners Association by registered or certified mail at the address of such officer as it appears on the records of the Homeowners Association at the time of such mailing. No action shall be taken or authorized by the Homeowners Association pursuant to any such determination until ten (10) days have elapsed from the date the certified mail notice to the Owner was received.

If a Notice of Appeal has not been received by the President or Secretary of the Homeowners Association (or other officer of the Homeowners Association in the absence of the President or Secretary) within such ten (10) day period, then the Homeowners Association may take, or authorize the taking of action pursuant to such determination; but, if within such period a Notice of Appeal has been received, or if after such period but before the taking of such action a Notice of Appeal is received which has been mailed within such ten (10) day period, then no action shall be taken pursuant to such determination until such determination has been confirmed at a meeting of the Members by the affirmative vote of Members entitled to exercise a majority of the voting power of the Homeowners Association. If there is more than one (1) class of Membership, then action shall be authorized by the affirmative vote of Members entitled to exercise a majority of the voting power of each class of Membership, provided that written notice shall be given to all Members at least thirty (30) days in advance of the date of such meeting, stating that such determination and Notice of Appeal will be considered and voted upon at such meeting.

In' the event that a majority of the voting power of the Members of the Homeowners Association, or a majority of any one (1) class of Membership if there is more than one (1) class, does not attend the meeting, the affirmative vote of two-thirds (2/3) of those Members in attendance shall constitute a quorum and shall govern.

SECTION 3. Additional Remedies of the Homeowners Association for Breach of Covenants and

Restrictions.

In addition, for each day of any violation of any of the Covenants or Restrictions after the expiration of the ten ~10) days written notice to the Lot Owner of such alleged violation, there shall be due and payable by the Lot Owner a fine of Fifty Dollars ($50), and such fine shall be subject to collection and secured in the same manner as assessments not paid by any Owner under

Article V, . Section 4 hereof.

Each Owner of a Lot shall comply with the provisions of this Declaration, and the decisions and resolutions of the Homeowners Association, as they maybe lawfully adopted and/or amended from time to time. Failure to comply with such provision, decision or resolution shall be grounds for an action for damages or for injunctive relief, or both, brought by the Homeowners Association, by an Owner of any Lot within the Monticello Place Subdivision.

ARTICLE X INSURANCE

SECTION 1. Authorization of the Board of Managers.

The Homeowners Association's Board of Managers, or its duly authorized agent, shall have the authority $o and shall obtain insurance for all insurable improvements within the Common Areas. This insurance shall cover loss or damage by fire or other hazards, including extended coverage, vandalism, and malicious mischief and shall be in an amount sufficient to cover the full replacement cost of any repair or reconstruction of the Common Areas in the event of damage or destruction from any such hazard. Alternatively, the Managers may purchase "all- risk" coverage in like amounts.

The Managers shall also obtain a public liability policy applicable to the Common Areas covering the Homeowners Association and its Members for all damage or injury caused by the negligence of the Homeowners Association or any of its Members or agents, and directors' and officers' liability insurance for the Managers. The public liability policy shall have a combined single limit of at least One Million Dollars ($1,000,000). Premiums for all insurance shall be a Homeowners Association Expense. All such insurance coverage obtained by the Managers shall be written in the name of the Homeowners Association, and shall be for the benefit of the Owner of any Lot.

SECTION 2. Insurance Provisions.

Exclusive authority to adjust losses under policies obtained by the Homeowners Association shall be vested in the Managers of the Homeowners Association; provided, however, no mortgagee having an interest in such losses may be prohibited from participating in the settlement negotiations, if any, related thereto.

In no event shall the insurance coverage obtained and maintained by the Managers of the Homeowners Association hereunder be brought into contribution with insurance purchased by an Owner of a Lot, or other Homeowners, their occupants, or their mortgagees; and the insurance carried by the Homeowners Association shall be primary.

(c) All casualty insurance policies shall have an inflation guard endorsement and an agreed replacement amount endorsement if these are reasonably available, and the Managers and one

(1) or more qualified advisors selected by the Managers shall review all insurance policies annually.

(d) The Managers of the Homeowners Association shall be required to make every reasonable effort to secure insurance policies that will provide for the following:

A waiver of subrogation by the insurer as to any claims against the Homeowners Association and its Managers; and the Owners of any Lots within The Monticello Place Subdivision and their respective tenants, servants, agents, and guests; and

(ii) A waiver by the insurer of its rights to repair and reconstruct instead of paying cash;

and

(iii) That no policy may be canceled, invalidated, or suspended on account of the actions of any one (1) or more Owners; and

(ivy That no policy may be canceled, invalidated, or suspended on account of any act or failure to act on the part of any Manager, officer, or employee of the Homeowners Association, without prior demand in writing delivered to the Homeowners Association to cure the defect or to cease the conduct and the allowance of a reasonable time thereafter within which a cure may be effected by the Homeowners Association, or any Owner or mortgagee; and

(v) That any "other insurance" clause in any policy exclude individual Owners' policies;

and

(vi) That no policy may be canceled or substantially modified without at least thirty (30) days' prior written notice to the Homeowners Association.

SECTION 3. Destruction of, or Damage to Property; Effect.

(a) Responsibility for Reconstruction or Repair. If any portion of the Common Areas shall be damaged by perils covered by the Association's Casualty Insurance, the Association shall cause such damaged portion to be promptly reconstructed or repaired to the extent of the funds made available to the Board of Managers.

(b) Procedure for Reconstruction or Repair.

Immediately after a casualty causing damage to any portion of the Common Areas the Board of Managers of the Homeowners Association shall obtain reliable and detailed estimates of the cost to place the damaged property in a condition as good as the condition of the Property before the casualty. Such costs may include professional fees of public adjuster firms and others and premiums for such bonds as the Board deems necessary.

(2) If the proceeds of the Casualty Insurance are not sufficient to defray the estimated costs of reconstruction and repair by the Homeowners Association (including the aforesaid fees and premiums, if any) one or more Special Assessments shall be made against all Lot Owners in sufficient amounts to provide funds for the payment of such costs, and the proceeds of such special assessments shall be retained separatelybythe Board of Managers.

The proceeds of the Casualty Insurance, and the sums deposited with the Board of Managers from collections of Special Assessments against Lot Owners on account of such casualty, shall constitute a construction fund which shall be applied by the Board of Managers to the payment of the cost of reconstruction and repair of the Common Areas from time to time as the work progresses, but not more frequently than once in any calendar month.

(4) Prior to the performance of any labor or work or the furnishing of any materials with respect to the reconstruction and repair, the Homeowners Association shall file in the office of-the county recorder a Notice of Commencement in compliance with the requirements of Section 1311.04 of the Ohio Revised Code. A copy of the Notice of Commencement shall be provided to each "original contractor" as defined by section

1311.01 of the Ohio Revised Code. A copy of the Notice of Commencement shall be posted and maintained in a conspicuous place at the site of reconstruction or repair during the course of the actual physical improvements. A copy of the Notice, of Commencement shall be provided within ten (10) days after the date any subcontractor, materialman, or laborer serves a written request to be provided with said Notice of Commencement.

(5) Each Lot Owner shall be deemed to have delegated to the Board their right to adjust with insurance companies all losses under the Casualty Insurance policies.

Notwithstanding the foregoing provisions of this Section, if the aggregate amount of the estimated costs of repairing any damage to the Common Areas is less than Ten Thousand Dollars

($10,000.00), the damage shall be repaired. Such insurance proceeds as are received on account of such damage shall be used by the Board of Managers to defray the cost of repairing the damage to the Common Areas.

(2) If the cost of such repairs is less than the amount of such insurance proceeds, the excess shall be retained by the Board of Managers and placed in the maintenance fund or contingency fund as the Board in its sole discretion may determine. If the cost of such repairs exceeds the amount of such insurance proceeds, such excess may be provided either by means of common assessment levied by the Board against all Lot Owners or by means of an appropriation from the contingency fund or such other fund as may be established for the purpose of providing for the maintenance, repair and replacement of the Common Areas, as the Board may determine.

Negligence of Lot Owner. Each Lot Owner shall be liable for the expenses of any maintenance, repair or replacement rendered necessary by their negligence, or by the negligence of any member of their family, or a member of their family's guests, employees, agents, or lessees, to the extent that such expense is not covered by the proceeds of insurance carried by the Association. A Lot Owner shall pay the amount of any increase in insurance premiums occasioned by their use, misuse, occupancy, or abandonment of their Lot, its appurtenances, or the Common Areas.

ARTICLE XI BOARD OF MANAGERS

SECTION l. Membership.

A Board of Managers shall be elected, with number; qualifications, term, powers and duties, and other requirements and limitations as provided in Article II of The Monticello Place Homeowners Association By-Laws attached hereto as Exhibit C.

Officers of the Homeowners Association shall be elected, with number, qualifications, term, powers and duties, and other requirements and limitations as provided in Article III of The Monticello Place Homeowners Association By-Laws attached hereto as Exhibit C.

SECTION 2. Duties.

The duties of the Board of Managers of The Monticello Place Homeowners Association, Inc. shall be to enforce the provisions of the Declaration of Covenants and Restrictions of The Monticello Place Homeowners Association herein contained and to enforce the provisions of The Monticello Place Homeowners Association By-Laws attached hereto as Exhibit C.

ARTICLE XII DURATION, WAIVER AND MODIFICATION

SECTION 1. Duration and Provision for Periodic Modification.

This Declaration and any Amendments hereto shall run with the land and shall inure to the benefit of and be enforceable by and against the Homeowners Association, the Declarant and any Owner, and their respective legal representatives, heirs, devisees, successors and assigns.

SECTION 2. Modificatioby.Declarants.

At any point prior to Declarant becoming solely a Class A Member of the Homeowners Association, the Declarant shall be entitled to modify any of the provisions of these Covenants and Restrictions without the approval of the Members, or to waive any such provisions either generally or with respect to particular portions of the Property, if in the sole judgment of the Declarant, the development or lack of development of the Property requires such modification or waiver, or, if in the sole judgement of the Declarant, the purposes of the general plan of development will be better served by such modification or waiver, provided that the Declarant may not, pursuant to this Section 2, increase the maximum Annual Homeowners Association Assessment provided by Article V, Section 2 for years beginning prior to 2004. Promptly following any modifications of this Declaration adopted by the Declarant, pursuant to this Article XII, Section 2, the Declarant shall execute and record an instrument reciting such modification and mail a copy to each Member. The Declarant shall have the right to assign their rights hereunder to one another or to third parties. Any change or changes affecting the rights of the City shall be effective only with the written consent of the City.

SECTION 3. Other Modifications.

This Declaration may be modified effective on the ninetieth (90th) day following a meeting of the Members held for such purposes, by the affirmative vote of Members entitled to exercise seventyfive percent (75%) of the voting power of the Homeowners Association, cast in person or by proxy at a meeting duly called and held in accordance with the By-Laws attached hereto as Exhibit C, provided that written notice shall be given to every Member at least sixty (60) days in advance of the date of such meeting, stating that such modification will be considered at such meeting. Promptly following the meeting at which such modification or cancellation is enacted, the President and Secretary of the Homeowners Association shall execute and record an instrument reciting such modification or cancellation and mail a copy to each Member. Any change or changes affecting the rights of the City shall be effective only with the written consent of the City.

ARTICLE XIII GENERAL PROVISIONS

SECTION 1. Notices.

Any notice required to be sent to any Member or Owner under the provisions of this Declaration shall be deemed to have been properly sent when mailed, postage paid, to the last known address of the person who appears as the Member or Owner on the records of the Homeowners Association at the time of such mailing.

SECTION 2. Enforcement.

Enforcement of the Covenants and Restrictions of this Declaration or any amendment hereto shall be by proceeding at law or in equity against any entity, person or Owner violating or attempting to violate any provision of this Declaration, either to restrain violation or to recover damages, or both, and against any Lot and the improvements thereon to enforce any lien created by this Declaration. Failure by the Homeowners Association or any Owner to enforce any Covenant or Restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter.

SECTION 3. Service Provided by Homeowners Association.

The Homeowners Association, in addition to its performance of the functions and responsibilities provided herein, may, but shall not be required to, provide other services determined by the Managers to be of general benefit or utility to the Owners and the expense of any such service or services shall be provided for by the levy of Homeowners Association Assessments, either Annual or Special, pursuant to Article V.

SECTION 4. Binding Effect.

Each Owner, upon accepting a deed, lease, or other instrument conveying any interest in a Lot, whether or not the same incorporates or refers to this Declaration, covenants for himself, his heirs, personal representatives; successors, and assigns to observe, perform, and be bound by this Declaration.

SECTION 5. Assignability.

The Declarant, its successors and assigns, notwithstanding any other provision to the contrary, shall at all times have the right to fully transfer, convey and assign all of its rights, title and interest under this Declaration, provided that such transferee, grantee or assignee shall take such rights subject to this Declaration.

SECTION 6. S.everability.

Invalidation of any one of the provision of this Declaration by judgment or court order shall in no way affect the validity of any other provisions of this Declaration, all of which shall remain in full force and effect.

SECTION 7. Waiver.

No provision contained in this Declaration shall be deemed waived by reason of failure to enforce the same, irrespective of the number of violations or reason for such failure to enforce.

SECTION 8. Captions.

Captions are inserted in this Declaration for convenience and reference only, and shall not be taken in any way to limit or describe the scope of this Declaration or any provision thereof. SECTION 9. Arbitration of Disputes Between Lot Owners.

In the event of any dispute between Lot Owners as to any provision in the Declaration, the By-Laws, or any rule or regulation adopted thereunder to any particular circumstance, the aggrieved party shall submit a complaint in writing to the Board specifying such dispute. The Board shall forward a copy of the complaint to the person named in the complaint and the Board shall set a time, date, and place for a hearing within forty-five (45) days thereafter and give written notice to each party thereof not less than five (5) days in advance. Such time period may be shortened or lengthened by the Board if the circumstances stated in the complaint would reasonably require a longer or shorter time period to arbitrate such dispute. The Board shall thereupon hear such evidence on the dispute as the Board deems proper and render a written decision on the matter to each party within ten (10) days thereafter (unless such decision would reasonably require a longer time period but not to exceed, in any event, thirty (30) days). No action at law may be instituted by either party to such a dispute unless arbitration pursuant hereto has first been had. The decision of the Board shall not be deemed to be binding on either party to the arbitration and the Board and its individual members shall not be held personally liable for any decision rendered pursuant to such arbitration procedure.

SECTION 10. Duties and Liabilities of the Declarant.

So long as Declarant, its successors and assigns own one or more of the Lots established and described herein, the Declarant, its successors and assigns shall be subject to the provisions of this Declaration and all Exhibits attached hereto. The Declarant further covenants to take no action that would adversely affect the right of the Homeowners Association with respect to assurances against latent defects in the Property, or other rights assigned to the Homeowners Association by reason of the establishment of the Homeowners Association

IN WITNESS WHEREOF, WHITLATCH & CO., Declarant, a corporation organized and existing under the laws of the State of Ohio, hereby executes this Declaration this 2(.-'' day of b ,

2002.

DECLARANT: WHITLATCH & CO.

WILLIAM C. WHITLATCH, President

The undersigned City of South Euclid, an Ohio municipal corporation, hereby approves this Declaration as a third party beneficiary under Article VIII, Section 7 of this Declaration.

_, Mayor

State of Ohio ) County of Summit)

Before me, a Notary Public in and for said County and State, personally appeared the above named WHITLATCH & CO., by and through its President, WILLIAM C. WHITLATCH, who acknowledged that he did sign the foregoing instrument and that the same is his free act and deed, personally and as such officer.

IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal at Twinsburg, Ohio this day of 74~~ , 2092.

KIMBERLY A. SHIMO Notary Public, State of Ohio, Cuy. Cty. My Commission Expires April 16, 2006

HOMEOWNERS ASSOCIATION:

THE MONTICELLO PLACE HOMEOWNERS ASSOCIATION, INC.

LYNN T. HARLAN, Manager

STATE OF OHIO ) COUNTY OF SUMMIT)

BEFORE ME, a Notary. Public in and for said County and State, personally appeared the above named THE MONTICELLO PLACE HOMEOWNERS ASSOCIATION, INC., an Ohio Non Profit Corporation, by JAMES LIPNOS, WILLIAM C. WHITLATCH and LYNN T. HARLAN, its Managers, who acknowledged that they did sign the foregoing instrument and that the same is their free act and deed, personally and as such members and the free act and deed of said corporation.

IN TESTIMONY WHE day of

I have hereunto set my hand and official seal at Twinsburg, Ohio this 2002. KIMBERLY A. SHIMO Notary Public, State of Ohio, Cuy. Cty.

My Commission Expires April 16, 2006

Notary PublicMy Commission expires

Exhibit A

SITE PLAN

EXHIBIT B

CERTIFICATE OF COMPLIANCE AND STATUS OF ASSESSMENTS WITH RESPECT TO THE RESALE OF A DWELLING UNIT AT MONTICELLO PLACE, THE CITY OF SOUTH EUCLID, OHIO

The Monticello Place Homeowners' Association, Inc., a Nonprofit Ohio corporation (the

"Association"), created to govern, operate, control and administer the Common Areas and Facilities for Monticello Place, South Euclid, Ohio and to supervise and enforce the Declaration of Covenants and Restrictions for Monticello Place (the "Declaration") hereby certifies as follows:

1. The Association has received notice of a proposed sale of Dwelling Unit No.

located at , South Euclid, Ohio.

2. The proposed purchased of the Dwelling Unit is

3. The Owner(s) of the Dwelling Unit is/are

4. The Association has no record of a violation of the Covenants and Restrictions contained in the Declaration except (if none, write "none")

5. The current annual assessment attributable to the Dwelling Unit is $

6. The assessments are payable at the rate of $ per month; said assessments being

payable through

7. A fee of $ is payable to the Association upon the issuance of this Certificate in accordance with the terms of the Declaration.

This Certificate of Compliance is being issued pursuant to Section 9 of Article V of the

Declaration.

THE MONTICELLO PLACE HOMEOWNER'S ASSOCIATION By:

Date: