Restrictive Covenants

Of Verndale Lakes Subdivision

1. Lot Use:

Lots 1-26 shall be used only for single-family residential purposes. No building intended for, adapted to or used for business purposes and no multiple-family dwelling shall be erected or maintained in the Subdivision. Buildings shall not be erected, altered, placed or permitted to remain on any lot in the subdivision other than one detached single-family dwelling of new construction in accordance otherwise with the Restrictive Covenants set forth below.

DEVELOPER reserves the right to construct, maintain and use for purposes of advertisement and development of the subdivision, a model or models of the type of home representative of the desired construction for lots 1-26 and related signage and graphics. Such model home or homes may contain displays and may be used to conduct activities relating to sales of lots 1-26.

2. Architectural Control:

For the purpose of insuring the high standards of the development contemplated by the DEVELOPER, the DEVELOPER reserves the power to control the building, structures, improvements and exterior alterations placed on each lot subject to this Declaration, and also reserves the right to make exceptions to these conditions and restrictions that the DEVELOPER or the entity acting in its stead deems necessary and proper. Whether or not provided for in any conveyance documents for any lot subject to this Declaration or in any building contract for construction of a single-family residence upon a lot, the owner or occupant of each and every lot subject to this Declaration, by acceptance of title to it or by taking possession of it, Covenants and agrees that no building, wall, structure, fence, or landscaping shall be commenced, erected, placed or altered on any lot, nor shall any exterior addition, change or alteration be made, until the plans and specifications for it have been approved in writing by the DEVELOPER or other entity acting in its stead.

The plans and specifications, which shall show the nature, kind, shape, height, materials, color, and location of same shall be submitted to DEVELOPER prior to any construction, landscaping or other activity in any way changing or affecting a lot subject to this Declaration. DEVELOPER shall have 30 days following submission of such plans and specifications to either approve or reject them. DEVELOPER or its assignee also reserves the right to require an applicant to resubmit plans if incomplete or inappropriate. If DEVELOPER or entity acting in its stead neither approves nor disapproves within that 30 day period, applicant shall resubmit and DEVELOPER or entity acting in its stead has 10 days from receipt of such resubmission to approve or disapprove. In the event that the DEVELOPER or the entity to which such pians and specifications have been submitted fails to approve or disapprove in writing within 10 days after such resubmission, no further approval will be required and approval be deemed to have occurred. However, unless the DEVELOPER or its assigns creates an exception in writing to the restrictions and covenants reflected in this document, no building, structure, fence or landscaping shall be erected or altered, which violates any of the restrictive covenants. DEVELOPER gives notice of its intent as above described to retain architectural control pending sale of the last lot subject to this Declaration, though DEVELOPER reserves the rights to delegate and assign this function as above described to the Association or an appropriate sub-committee formed by the Association for such purpose. However, even if no entity exists whose function is approval or disapproval of plans and specifications as above described, there shall be no building, structure, landscaping or other activity which violates any of the restrictive covenants.

3. Minimum Construction Standards:

Buildings or structures shall not be erected, altered, placed or permitted to remain on any lot other than one detached single-family dwelling of new construction not to exceed 2 stories in height with an attached private garage for not more than three cars. Single-family homes shall not be constructed on any lot subject to this Declaration with enclosed living space of less than 1600 square feet, exclusive of basement, lover level walkout, garage, and porches and decks. Single-story structures shall consist of enclosed living space of not less than 1600 square feet. Two-story structures shall consist of enclosed living space of not less than 1200 square feet on the first floor and not less than 2,200 total square feet, With the enclosed square footage being calculated exclusive of basement, lover level walkout, garage, and porches and decks. Bi-levels, raised ranch style homes, split level and split entry homes (all of which may include living areas below grade) shall consist of enclosed living space not less than 2,500 square feet exclusive of garage, decks and porches.

4. Building Exteriors:

As part of the architectural control referenced earlier and in order to maintain a high quality of construction and appearance within the subdivision, DEVELOPER requires that the front elevation of the dwelling must be at least 50% brick, with the remaining materials being of a natural substance (i.e. stone or wood). DEVELOPER may approve high quality aluminum or vinyl, (of which samples must be provided to the Developer); however, there will be no use of vinyl or aluminum siding on the front elevation. The remaining elevations will be reviewed by the developer.

5. Garages:

Each home constructed on a lot subject to this Declaration shall have an attached or built-in garage, containing a minimum of 430 square feet or cement floor area and with walls drywalled and painted using materials approved by DEVELOPER. DEVELOPER or its assignee reserves the right to regulate the width and number or garage doors for each garage built. Garage doors shall be of wood or steel. Carports or detached garages or similar structures are not permitted on any lot subject to this Declaration.

6. Driveways and Parking Areas:

The location of all driveways shall be pre-approved by the DEVELOPER as previously described but, in any event, shall be located no closer than three feet from any property line. The driveway approach and driveway leading from the hard-surface street to the garage must be paved with concrete.

Unless otherwise approved by DEVELOPER or its assignee, there shall be no outside parking other than in the driveway area limited to the distance between the garage and the edge of the sidewalk or street closest to the structure. Outside parking shall otherwise comfort with all applicable Delta Township ordinances. In the event that this provision would have to be interpreted, it is the intent of DEVELOPER to limit outside parking of vehicles to the space between that portion of the driveway beyond the sidewalk, if any, or the street and the front of the garage and to limit such outside parking to no more than three cars per dwelling unit, and to insure that such outside parking is temporary in nature so as not to violate applicable Delta Township ordinance and also to prevent parking on the street in violation of ordinances.

7. Building Location and Setbacks:

So long as in conformity with applicable township ordinance, the minimum set backs for houses, including garages, porch, decks, patios and other appurtenant structures, from the front, side, and rear lot lines shall be determined by DEVELOPER. In the absence of a determination by DEVELOPER as part of the approval process previously described, the minimum setback required shall be those set forth in applicable Delta Township ordinance. In the event that more than one lot is acquired for the purpose of construction of a single dwelling upon the total land area comprised by such lots, minimum set back requirements for side lot lines shall refer to the lit lines of adjacent lot owners.

8. Out-Buildings, Detached Structures and Outdoor Play/Recreational Equipment:

Out-buildings or structures of any type detached from a dwelling and play/recreational equipment, including but not being limited to a play house, tree house, tool house, green house, or gazebo, shall not be constructed or placed on any lot subject to this Declaration without prior written approval from DEVELOPER or its assigns. Recreational equipment requiring pre-approval from DEVELOPER also includes basketball backboards and poles.

In the event that DEVELOPER or its assign should approve construction, erection or placement of some item of play or recreational equipment and should the use of same be, in the opinion of DEVELOPER or its assign, a nuisance to other lot owners, DEVELOPER reserves the right to rescind its approval and request removal of such play/recreational equipment with reasonable dispatch.

9. Fences, Hedges, Decks and Patios:

Fences, hedges, decks or patios shall not be permitted on any lot subject to this Declaration unless pre-approved in writing as to height, location, material, design and color by DEVELOPER. Even with approval, fences are permitted only in the backyard area of a lot and no fence or hedge shall exceed six feet in height.

10. Swimming Pools, Hot Tubs and Tennis Courts:

Tennis courts or above ground swimming pools are not permitted on any lot subject to this Declaration. Swimming pools or hot tubs shall not be constructed on any lot subject to this Declaration without plans having been pre-approved in writing by DEVELOPER. In no event shall a swimming pool or hot tub be located within 15 feet of any adjoining lot, nor shall the swimming pool or hot tub be used in a manner to constitute a nuisance to owners of lots subject to this Declaration. Any swimming pool or hot tub approved for construction by DEVELOPER shall be constructed within strict conformity with all applicable Delata Township restrictions. Any swimming pool or hot tub approved for construction by DEVELOPER shall be fenced and screened by landscaping which landscaping is also subject to pre-approval by DEVELOPER.

11. Temporary Structures:

Unless necessary during the construction process of a dwelling, temporary buildings or structures of any kind are not permitted. Additionally, structures of any temporary character, trailer, tent, shack, garage, barn or any other outbuildings shall not be used on a lot at any time as a residence, whether temporarily or permanently.

12. Landscape Control:

Landscaping and plantings shall not be planted, constructed or altered in the subdivision until landscape plans have been submitted to and approved in writing by DEVELOPER, except for annual and perennial flowers. DEVELOPER approval of landscaping shall occur in the same manner and within the same time frame as architectural control matters previously described. Failure of DEVELOPER to accept or reject within the stated time frame shall be deemed an acceptance. Upon acceptance or approval of landscaping plans, the landscaping shall occur and be completed within two months of such acceptance or approval, except for the months of December, January, February, and March, which shall be excluded from the calculation of the two month period. This two month period shall begin when the certificate of occupancy has been issued for all build jobs.

All landscaping accepted and approved, and all grass, sod or green areas shall be timely and responsibly maintained by lot owners. This is to include any necessary irrigation to maintain a healthy appearance. Trees, bushes, hedges and the like shall be regularly pruned and maintained with dead limbs and branches periodically removed. Any tree, bush, or like landscaping that dies shall be removed and the lot owner may substitute a like type of landscaping without DEVELOPER approval in such instance. Grass and sodded areas shall be regularly mowed and maintained with mowing to occur not less often than weekly during the peak growing season. Weeds and other growth are to be cut and maintained on all unoccupied lots.

Garden plots will be permitted but shall be located only in the back yard area of a lot and shall not exceed 400 square feet in size. Gardens shall be kept free of weeds and maintained in accordance with the high quality standards contemplated by this Declaration

In lots fronted by a sidewalk, the planting strip between sidewalk and street shall be seeded or sodded in a neat, orderly and aesthetically pleasing manner within two months of occupation of a dwelling on the lot. It shall be the responsibility of the lot owner to maintain this planting strip area in the same mode and manner as other grass and sodded areas on the lot.

13. Signs and Displays:

Signs or displays of any kind shall not be displayed to public view on any lot subject to this Declaration except that one sign of not more than six square feet advertising the property for sale will be permitted. Additionally, signs and displays used by the DEVELOPER and builders to advertise and promote sale of the property and dwellings will be permitted during the construction and sales period.

Commercial signs or advertising shall not be placed on any lot subject to this Declaration. No more than one political yard sign will be permitted which shall not exceed six square feet in size. All political yard signs shall be removed within three days of any election or event for which such signs were placed. Any “For Sale” signs shall be removed within three days of execution of a sales agreement by BUYER and SELLER.

14. Commercial Activity:

As indicated, no commercial signs or advertising shall be placed upon any lot subject to this Declaration. Lot owners shall not engage in any commercial advertising activity that would involve the placement of signs or advertising on or near any lot, except that the DEVELOPER and builders may utilize for sale and promotional type signs during the construction and development period for the lots subject to this Declaration.

The lots subject to this Declaration shall not be used for other than single-family residential purposes. No building or structure intended for or adapted to business purposes shall be erected or maintained on any lot. No commercial or retail activity shall be conducted from any dwelling within the subdivision except to the extent that such in-home business, or commercial activity is in full and complete conformity with applicable Delta Township ordinance. Any home business, even if in conformity with applicable ordinance, that causes excessive vehicular traffic or which is conducted at a time of day or not or in a manner which causes a disturbance or annoyance to other residents, is prohibited.

No commercial trucks or vehicles shall be stored or parked on any lot, or parked on any street except and unless located temporarily in a closed garage or unless temporarily engaged in transporting items to and from a residence.

15. Animals/Pets:

Animals other than those usually and commonly designated as household pets shall not be kept on any lot or in any building or structure subject to this Declaration. No more than two household pets per lot owner will be permitted. Dogs, ats, and other household pets, of not more than two in number will be permitted, provided that they are not kept, bred or maintained for any  commercial purpose.

Lot owners are responsible for their pets. Pets are to be confined to the lot and shall not be allowed to trespass on other lots. Pets shall not be permitted to roam free by their owners and must be confined within a fence, run, or other enclosure on the lot, provided the fence, run or other enclosure complies with the provisions of this Declaration, unless on leash or lead by an owner or other responsible person. Lot owners are responsible for timely pick-up of any animal waste from their pets on any sidewalk, driveway, roadway, front yard, or common area.

16. Storage:

There shall be no outdoor storage of a mobile home, motor home, house trailer, recreational vehicle or trailer, boat, snowmobile, utility trailer, camping trailer or like item. For purpose of this paragraph, “storage” is considered anything over 48 hours in any single week.

17. Nuisances:

No activity shall be permitted by a lot owner which will unreasonably disturb the quite enjoyment of other lot owners and their guests. In addition to those activities described previously, the following specific prohibitions and restrictions are set forth, but by way of example and not by way of limitation, to exemplify the type of activity and conduct which will be considered and unreasonable disturbance of the quiet enjoyment designed to be insured and hence a prohibited nuisance activity:

1. The keeping, maintenance and control of animals and pets other than as specifically set forth previously.
2. Signs and commercial activity which exceed or violate the provisions previously set forth.
3. The parking or storing of commercial and recreational vehicles in violation of the provisions previously set forth, unless placed wholly within an enclosed garage.
4. Failure to maintain landscaping and sodded and lawn areas as previously described. No weeds, underbrush, or unsightly growth shall be permitted to grow or remain up on any lot and no refuse pile, junk pile, or accumulation of unsightly objects shall be allowed to be placed or remain on any lot.
5. The burning of garbage, refuse, brush or leaves; the placement and keeping of outdoor receptacles for ashes, garbage or refuse; outdoor exposed tanks for storage of fuel; outdoor storage of lawn mowers, tools and equipment; above ground swimming pools; outdoor clothes lines; camping.
6. Operation of snowmobiles, motorcycles or other motorized recreational vehicles, except any such vehicle that may lawfully be operated on a public street.
7. Exterior television antennas, satellite dish receivers, radio communication antenna and receiver devices of any type, unless with the prior written approval of DEVELOPER or entity acting in its stead.
8. Uncovered metal chimneys, must have prior written approval of DEVELOPER or entity acting in its stead.
9. Excessive noise of any type; for purposes of this sub-paragraph, excessive noise shall be defined as set forth in applicable township ordinance.
10. Other than during the construction period, there shall be no outside storage of wood, (excluding fire wood), tools, construction materials, dirt, mulch, fertilizer, herbicides, and like materials. Lot owners remain responsible for the control and maintenance of any poisonous or hazardous substances used for any purpose.
11. The failure to timely and properly maintain painted exterior surfaces on any building, structure or device located on a lot; additionally, the failure to timely and properly maintain any exterior surface of any building or structure so as to remain aesthetically pleasing in appearance and functioning in accordance with its use, shall be considered a nuisance.
12. Unless approved in writing in advance by DEVELOPER or entity acting in its stead, no flag poles or like structures are permitted on any lot. Other than on a flag pole or like structure approved in advance by DEVELOPER, any flags or like items displayed shall be temporary only and shall be removed within 48 hours of initial display.
13. No firearms, BB guns, air guns, and the like shall be discharged anywhere on the lots subject to this Declaration nor shall any archery equipment be used; no firecrackers, or fireworks shall be stored, used or discharged.
14. No fence, wall, hedge, shrub, or planting, whether or not approved by DEVELOPER, shall be permitted to exist which obstructs sight distance at intersections.

All of the above are set forth by way of example and not by way of limitation, it bein the intent of these restrictions to prohibit activity which is disturbing or bothersome to other lot owners or which violates the intent of these restrictions to create an orderly and aesthetically pleasing community. Nuisance type activity occurring which does not cease or abate upon written notice from DEVELOPER or its assigns, will justify DEVELOPER, Association or assigns of DEVELOPER in removing the nuisance at the expense of the lot owner causing it. Such costs and expense shall be collectible in the same manner as the collection of assessments, as will be subsequently set forth. Any cost for removal of a nuisance or any assessment, until paid, shall constitute a lien on the property and shall bear interest at 7% per annum (or the maximum rate allowed under law). Each assessment, cost and lien, with interest and the cost of collection, including reasonable attorney fees, shall be the personal obligation of the person who is the owner of such property at the time when such lien or assessment fell due. Additionally, DEVELOPER, the Association and other lot owners have full right of legal recourse in equity and in law to prevent or cause cessation of nuisance type activity.

18. Outdoor Lighting:

The placement and intensity of outdoor lighting, whether for security or ornamentation, is subject to pre-approval by DEVELOPER, as described above with reference to architectural and landscaping control. Unless specifically permitted by DEVELOPER as part of the approval process, no mercury vapor or sodium outdoor lighting will be permitted. Unless otherwise approved by DEVELOPER, lights used for outdoor lighting shall be limited to 100 watts or less.

DEVELOPER intends to have street lights installed by the proper public authorities. The periodic service charges rendered by the township, through taxation, assessment or any other means, for such lighting, shall be the responsibility of the individual lot owners.

Christmas and other special holiday temporary outdoor lights are permitted but must be removed within 10 days of the particular holiday involved.

19. Mailbox and Mailbox Structures:

As with all other improvements to lots within the subdivision, the location, size, type, style and color of mailbox and mailbox enclosure structures is subject to require written pre-approval by DEVELOPER or its assignee. The intention of DEVELOPER is to require that mailboxes be placed within an enclosure of a color, design and style compatible with that of the home to which it relates, and that the mailboxes involved be of uniform size and be placed at a curbside location approved by DEVELOPER and appropriate for mail delivery by the United States Postal Service. As with all other structures, the exterior surface of any enclosing structure shall be timely and adequately maintained by the lot owner, including periodic repainting. Approvals of mailbox and mailbox structures are also subject to any relevant regulations of the United States Postal Service.

Others have wood

20. Damaged or Destroyed Buildings and Structures:

Any building or other structure or improvement on any lit which may be damaged or destroyed by fire, wind storm or from any other cause, shall be repaired, rebuilt or torn down and all debris removed and the area restored to a sightly condition, or essentially the same condition as before the destruction, with reasonable dispatch, or in any event, no longer than six (6) months. DEVELOPER or entity acting in its stead, in the event such repair, reconstruction or tearing down and removal does not occur with reasonable dispatch, may enter upon the lot or premises where same has occurred and either complete such renovation or repair or complete such demolition, and the expense of so doing shall be immediately due and payable to DEVELOPER or entity acting in its stead from the lot owner and shall become a lien on the property which may be foreclosed in the same manner as foreclosure of a mortgage under applicable Michigan Law.

DEVELOPER or entity acting in its stead may enter on premises where excavation, foundation or an incomplete building or structure has been left, in the event there has been no progress in construction, renovation or repair relating to same for more than 90 days, and cause such excavation or foundation to be filled or removed, or such uncompleted building or other structure to be completed or demolished, with the expense of same being immediately due and payable to DEVELOPER or entity that acts in its stead from the lot owner and the costs incurred shall become a lien on the property which may be foreclosed in the same manner as foreclosure of a mortgage under applicable Michigan Law.

21. Grading and Excavation:

DEVELOPER anticipates that the rough grading of each lot will have been accomplished by the time of initial sale of the lot. Finished grading shall not be altered substantially without the prior written approval of DEVELOPER in the same manner as relates to architectural and landscaping control. Once final grade has been established, no modification from same shall be made without the written approval of DEVELOPER. Any earth or other material removed in grading and excavating shall be deposited at a location designated by DEVELOPER or, upon request, shall be removed by the lot owner at its expense.

22. Developer’s Discretion and Control:

As previously indicated, one purpose of these covenants and restrictions is to develop and clarify DEVELOPER’S control over the Development of the lots and construction of all dwellings and landscaping placed upon it. In this regard, any such construction, landscaping, remodeling, alteration and the like shown on plans approved by DEVELOPER, shall be done and placed on the premises and lot strictly in accordance with the plans and specifications as approved. DEVELOPER reserves the right to insist upon inspection of any completed structure, improvement or alteration prior to use or occupancy to insure compliance “as-built” with the pre-approved plans.

Refusal to approve plans and specifications by DEVELOPER or other entity acting in its stead may be based on any ground or reason, including purely aesthetic reasons, which in the sole and uncontrolled discretion of DEVELOPER or the representative acting in its stead, shall be deemed sufficient. Likewise, DEVELOPER reserves the discretion to waive the various requirements reflected in these Covenants and Restrictions where circumstances appropriately warrant such waiver, in the discretion of DEVELOPER, and where any such waiver will not result in a violation of applicable township ordinance or law. Any waiver must be in writing, signed by DEVELOPER.

23. Easements:

Easements are granted as shown on the plat for the construction and perpetual operation and maintenance of conduits, poles, wires, and fixtures for electrical lights, telephone and other public and quasi-public utilities, including the right to trim or remove any trees or other vegetation which may at any time interfere or threaten to interfere with the maintenance of such utility facilities and fixtures with related right of ingress and egress. Said right to continue as long as the same is required for said purpose by said public utility, or quasi-public utility.

Utility and roadway easements exist as shown in the plat and are reserved for the purposes of installing and maintaining municipal and public utility facilities, storm water retention and for other related and incidental purposes relating to the development of the lots subject to this Declaration. All claims for damages, if any, arising out of the construction, maintenance and repair of utilities or roadways or storm sewers or other designated easements or an account of temporary or other inconvenience that may be caused by the construction and maintenance of such easement, whether against the DEVELOPER or any utility company, township or county, are waived by lot owners. DEVELOPER reserves the right to change, layout new roadways, or discontinue any roadway or right of way shown on the plat, subject to any required approvals of the Township of Delta, if necessary. Streets shown on the plat of the subdivision are dedicated for the use of the public. No lot owner shall in any way impede, interfere with, or disrupt the construction, repair, maintenance or use of any private or public easement, street, or right-of-way set forth in the plat.

It is expressly understood that no buildings or other structures will be placed upon the above described easements without the written consent of said public utility, or quasi-public utility. No shrubs or foliage shall be permitted on said lots within five (5) feet of the transformer enclosure or secondary connection pedestals.

The owner of a lot shall have the right to make any use of the land which is not inconsistent with the easements herein granted.

The grade established at the time the utilities are placed underground shall be considered final or finished grade. No lot owner shall make any changes in such grade or alter any ground conditions, including drainage, when such change or alteration, in the opinion of the utility concerned, interferes with the facilities already installed. No excavations (except for public utility, or quasi-public utility purposes), no changes of finished grade, and no structure or apparatus of any kind, shall be allowed which will interfere with public utilities, or quasi-public utilities.

If relocation or rearrangement of utilities is required due to a violation of the lot owner of the foregoing restrictions, said cost for relocation or rearrangement shall be paid the public utility, or quasi-public utility, by the lot owner.

Nonuse or limited use of this easement shall not prevent the public utility, or quasi-public utility from later making use of the easement to the full extent herein authorized.

The foregoing provisions pertaining to easements and utilities shall be covenants running with the land, shall be binding on all lot owners, and shall be subject to termination only with the written consent of the utility therein concerned.

DEVELOPER reserves the right to create such easements in the future as DEVELOPER deems appropriate and necessary for the proper development and continued prosperity of the lots subject to this Declaration.

24. Remedies for Violation of Restrictive Covenants:

The DEVELOPER, a lot owner or owners, the Homeowners’ Association once formed, have the right to enforce these Restrictive Covenants to the fullest extent permitted by applicable law and procedure. Upon a violation occurring of a Restrictive Covenant, which remains in default or otherwise unresolved after reasonable written notice, any of the above have the right to proceed at law or in equity to compel compliance with the terms of these Restrictive Covenants and/or to prevent the continued or successive violation or breach of any of them. Additionally, the above have the right, whenever there exists on any lot any structure or improvement which is in violation of these restrictions, to enter upon the property where such violation exists and to summarily abate or remove such violation at the expense of the lot owner. In such event, such entry, abatement or removal shall not be deemed a trespass. A failure to enforce any of the reservations, restrictions and conditions here set forth shall not be considered a permanent waiver of the right to do so and shall not bar future enforcement.

As indicated previously, with reference to any lien imposed on any lot owner either for violation of the restrictive covenants or for non-payment of any assessment or monetary amount, interest shall accrue at the rate of 7% per annum (or the maximum rate allowed under law) and, in the event of any judicial enforcement or collection activity, the party bringing such action shall be entitled to court costs and reasonable attorney fees. As indicated previously, any lien imposed properly shall be enforceable in the same manner as foreclosure of a mortgage under applicable Michigan Law.

25. Partial Invalidity:

Should any provision of these Covenants and Restrictions, or portion of them, be deemed invalid, the validity of the remainder of these conditions, easements and restrictions shall not be affected.

26. Assignment:

DEVELOPER may at any time assign all or part of its rights, privileges and duties to the Homeowners’ Association in Verndale Lakes Subdivision or to any other person, firm, entity, or corporation and upon the execution and recording of appropriate instruments of Assignment and Conveyance, the Assignee shall have and exercise all the same rights as DEVELOPER and DEVELOPER shall be fully released and discharged from further obligations and responsibilities with reference to these Restrictive Covenants.

Assessments and Homeowners’ Association

28. Homeowners’ Association:

DEVELOPER has or will form a Homeowners’ Association for Verndale Lakes Subdivision. Every person or entity who is a record owner of fee title in a lot subject to this Declaration or has a land contract purchaser’s interest in a lot subject to this Declaration, shall automatically acquire membership in the Homeowners’ Association. There will be one vote for each lot. If a lot is owned by more than one person or entity, there will only be one vote and such owners must decide amongst themselves how to cast that vote. If a lot is purchased by land contract, the voting right will exist for the land contract purchaser rather than the land contract seller.

DEVELOPER has or will establish the Homeowners’ Association as a Michigan Non-Profit Member Corporation. As indicated, a purchaser of a lot, in fee or by land contract, automatically acquires membership in this corporate Homeowners’ Association. Articles of Incorporation shall be prepared and filed with the Corporation and Securities Bureau of the Michigan Department of Commerce, by DEVELOPER and DEVELOPER will also prepare the initial corporate bylaws for the Association. So long as DEVELOPER retains any interest in any lot subject to this Declaration, DEVELOPER shall be a member of the association just as any other lot owner and will have the same voting rights and privileges.

While the specific purposes, duties and responsibilities of the Association will be set forth in the documents above described creating such Association, the Association is established for the essential purpose of promoting the improvement and maintenance of the lots, preserving and enhancing the value of the lots as improved by owners, the interpretation and enforcement of the Restrictive Covenants, easements and conditions above set forth, and the administration and collection of assessments, relating to the above.

During the development stage of the lots, DEVELOPER intends to retain control of the administration of the restrictions. Once development is completed or substantially completed, DEVELOPER INTENDS to transfer administration of these restrictions to the Homeowners’ Association. However, DEVELOPER reserves the right to transfer administration of restrictions to the Association at any time. Prior to any transfer to the Association, DEVELOPER reserves the right to transfer or assign its rights, in whole or In part, to any other person or entity. Should an owner of any lot violate any of the restrictions, during the time period of DEVELOPER control, DEVELOPER shall have the right to undertake correction of the violation and the costs incurred by DEVELOPER in so doing shall be immediately due and, if not paid, including interest at 7% per annum (or the maximum rate allowed under law), which lien may be foreclosed in the same manner as foreclosure of a mortgage under applicable Michigan Law.

Pending transfer of administration of restrictions to the Association or other person or entity, DEVELOPER shall have the right to grant a variance from any of the restrictions to the owner of any lot if, in the sole discretion of DEVELOPER, such variance would not violate applicable law, would not substantially impair the intent of the restrictions, the prosperity of the community, or rights of other then owning a lot or lots. Once transfer of administration of restrictions has been made to the Homeowners’ Association, all determinations and approvals required of DEVELOPER under such restrictions, and all variances obtainable from DEVELOEPR, shall be obtained from the Association. All determinations, approvals and variances, whether from DEVELOPER or Association, shall be in writing and shall be procured prior to the act being undertaken which requires such determination, approval or variance, or which would violate these restrictions. The granting of any variance or approval, or the making of any determination, shall not be construed as a precedent binding DEVELOPER or the Association to any other similar or identical variance, approval or determination, and no action, or inaction, of DEVELOPER or Association shall be deemed a waiver of any of their rights as set forth in this Declaration of Restrictive Covenants.

With reference to the Articles of Incorporation and Bylaws of the Homeowners’ Association, DEVELOPER reserves the right to amend both documents prior to any lot owner other than DEVELOPER becoming a member of the Association. DEVELOPER shall be the only member of the Association until such time as DEVELOPER transfers all or any of the administration of the restrictions to the Association.

DEVELOPER has determined initially to establish assessments at $50 per year per lot, which amount may be pro-rated at time of purchase or acquisition of ownership so that a calendar year basis for calculation of such assessments may be maintained. The assessments are due on or before January 1 of each year except for the pro-rated assessment for the first year of purchase of a lot. DEVELOPER will establish an assessment fund initially at a financial institution of its choice which funds shall be transferred to the Association simultaneously with the transfer or responsibility for restrictions to the Association.

The established assessments shall be utilized for, but not limited to, the general maintenance of the cul-de-sac islands, right of ways and easements, subdivisions prorated share of maintenance cost of entrances into subdivision, postage fees, and any costs incurred through the potential legal enforcement of these restrictions. DEVELOPER or its assigns will review the assessments annually, and reserves the right to raise or lower the amount due per year per lot, as needed.

Any assessment not paid when due shall accrue interest from the due date at 7% per annum (or the maximum rate allowed under low), and shall become a lien on the lot in question until paid. Any such lien may be foreclosed by DEVELOPER, or the Association if it then has responsibility for assessments, in the same manner as foreclosure of mortgages under applicable Michigan law or may be enforced by an other lawful remedy. Failure of a lot owner to pay any assessment lawfully required shall constitute a violation of the Restrictive Covenants.

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