Stone Canyon East

MASTER DECLARATION
OF
COVENANTS, CONDITIONS AND RESTRICTIONS 

STONE CANYON EAST, A LUXURY RESIDENTIAL DEVELOPMENT
TOWN OF SUNNYVALE, DALLAS COUNTY, TEXAS


THE STATE OF TEXAS      §
§                                                    KNOW ALL MEN BY THESE PRESENTS THAT:
COUNTY OF DALLAS        §

THIS MASTER DECLARATION is made as of the _____ day of ____________, 2007, by Stone Canyon East, LP, a Texas limited partnership (hereinafter called the “Declarant”).

W I T N E S S E T H:

WHEREAS, Declarant is the owner of a certain tract of real property commonly known as Stone Canyon East, Town of Sunnyvale, County of Dallas, State of Texas, the legal description of which is more particularly described in Exhibit A attached hereto and made a part hereof for all purposes (hereinafter called the “Subdivision”); and

WHEREAS, Declarant has created a luxury residential community with designated “Lots” (as defined herein) for the benefit of the present and future owners of said Lots within the Subdivision, and desires to create and carry out a uniform plan for the improvement, development, and sale of the Lots; and

WHEREAS, Declarant desires to ensure the preservation of the values of the Lots and for the maintenance of the Common Areas (as defined herein), and to this end, desires to further subject the Subdivision to the covenants, conditions, and restrictions hereinafter set forth; and

WHEREAS, Declarant has deemed it desirable for the efficient preservation of the values of Lots in the Subdivision to subject and bind the Subdivision to the jurisdiction and assessment of the Stone Canyon East Homeowners Association, which has been incorporated under the Laws of the State of Texas as a nonprofit corporation, and which has been granted powers to maintain and administer the Common Areas of the Subdivision and of administering and enforcing the covenants, conditions, and restrictions, and to collect and disburse the assessments and charges hereinafter created.

NOW, THEREFORE, Declarant declares that the Subdivision and such additions thereto as may hereafter be made pursuant to the terms hereof, is and shall be held, transferred, sold, conveyed, and occupied subject to the covenants, conditions, restrictions, easements, charges and liens hereinafter set forth, and which shall run with the land and be binding on all parties having any right, title or interest in the Subdivision or any part thereof, and on their heirs, successors and assigns, and shall hereafter be subject to the jurisdiction and assessments of the Stone Canyon East Homeowners Association, as set forth herein.

ARTICLE I

PURPOSE

The Subdivision is encumbered by this Master Declaration of Covenants, Conditions and Restrictions for the following reasons: to ensure the best and highest use and most appropriate development of the property; to protect lot owners against the improper use of surrounding lots; to preserve, so far as practicable, the natural beauty of the property; to guard against the erection of poorly designed or proportioned structures; and, in general, to provide for development of the highest quality to enhance the value of investment made by Owners (as defined herein) of Lots.

DEFINITIONS

Section 1.        Definition.  Unless the context otherwise specifies or requires, the following words, when used in this Declaration or any Supplemental Declaration (as defined herein), shall have the following meanings:

(a)        “Articles” shall mean and refer to the Articles of Incorporation of Stone Canyon East Homeowners Association, Inc., a Texas non-profit corporation, which are or shall be filed in the Office of the Secretary of State of the State of Texas, as such Articles of Incorporation may from time to time be amended.

(b)       “Assessment” shall mean and refer to any assessment levied pursuant to this Master Declaration, including General Assessments, Special Assessments for Capital Improvements, or Emergency Expenditures.

(c)        “Association” shall mean and refer to the Stone Canyon East Homeowners Association, Inc. a Texas non-profit corporation, its successors and assigns, which has the power, duty and responsibility of maintaining and administering the Common Areas and administering and enforcing the restrictive covenants contained in this Declaration or any Supplemental Declaration.  The Association is a “property owners association” as that term is defined in Texas Property Code §202.001(2).

(d)       “Board of Directors” or “Board” shall mean and refer to the Board of Directors of Stone Canyon East Homeowners Association, Inc.

(e)        “Builder Member” shall mean and refer to a builder approved by Declarant for construction within the Subdivision and who owns one or more Lots for construction of a residence and resale to others.

(f)        “Bylaws” shall mean and refer to the Bylaws of the Association which are or shall be adopted by the Board, as such Bylaws may from time to time be amended.

(g)       “Carport” shall mean and refer to an open or not fully enclosed structure primarily intended for the storage or parking of motor vehicles.

(h)       “Common Areas” shall mean and refer to all real and personal property leased, owned, or maintained by the Association for the common use and benefit of the Members of the Association.  Common Areas shall include, but are not limited to, any entrance monuments, amenity center, lake, drainage facilities, rights-of-way, landscaping, park space, and any other area lying within an indicated public easement or right-of-way as deemed appropriate by the Board of Directors of the Association for the preservation, protection and enhancement of the property values and the general health, safety or welfare of the Owners, safety lanes, and other areas not comprised of residential Lots as shown on the Subdivision Plat.

(i)        “Declarant” shall mean and refer to Stone Canyon East, LP, a Texas limited partnership, and its successors and assigns who are designated as such in writing by Declarant.  No person or entity purchasing one or more Lots from Declarant in the ordinary course of business shall be considered a “Declarant.”

(j)        “Declaration” shall mean and refer to this Master Declaration of Covenants, Conditions and Restrictions for the Subdivision, and any amendments and supplements hereto made in accordance with the terms hereof.

(k)       “Garage” shall mean and refer to an enclosed structure attached to a single-family residence which is primarily used for the storage and parking of motor vehicles.

(l)        “Living Space” shall mean and refer to the interior space within a single-family residence the measurement of which does not include Garage space.

(m)      “Living Unit” shall mean and refer to a single-family residence and its Garage situated on a Lot.

(n)       “Lot” shall mean and refer to any of the designated plots of land as shown on the Subdivision Plat.

(o)       “Member” shall mean and refer to those Owners who are members of the Association, as provided herein.

(p)       “Owner” shall mean and refer to the record owner, whether one or more persons or entities, of the fee simple title to any Lot or portion of a Lot, within the Property, but excluding those having any interest merely as security for the performance of an obligation.

(q)       “Property” shall mean and refer to the Subdivision (including improvements thereon) and additions thereto, as are subject to this Declaration or any Supplemental Declaration.

(r)        “Resident” shall mean and refer to each Owner who resides within the Property, a bona fide lessee who has an enforceable lease agreement with an Owner and who resides on the Property, and any individual who is otherwise lawfully domiciled in a Living Unit.

(s)        “Single Family” shall mean and refer to a group of individuals related by blood, adoption or marriage or a number of unrelated roommates equal to the number of bedrooms in a Living Unit.

(t)        “Subdivision Plat” shall mean and refer to the map or plat of the Subdivision which will be filed of record in the Deed and Plat Records of Dallas County, Texas and any amendment thereof upon filing of same for record in the Deed and Plat Records of Dallas County, Texas.

ARTICLE II

PROPERTY SUBJECT TO MASTER DECLARATION

Section 1.        Property Subject to Declaration.  The Property, and any right, title, or interest therein, shall be owned, held, leased, sold, and/or conveyed by Declarant, and any subsequent owner of all or any part thereof, subject to this Declaration and the covenants, restrictions, charges and liens set forth herein.

Section 2.        Additions to Property Subject to Declaration.  Additional adjacent property may become subject to this Declaration in the following manner:

(a)        If Declarant, or any other person, firm or corporation, is the owner of any adjacent property which Declarant, or such other person, firm or corporation desires to be a part of or add to the scheme of this Declaration, it may do so by filing of record a Supplementary Declaration, PROVIDED, HOWEVER, that if adjacent property is added to the scheme of this Declaration by any person, firm, or corporation other than Declarant, the Association, acting through its Board of Directors, must give written consent thereto.  Declarant’s rights herein shall survive and exist regardless of the number of Lots owned by Declarant.

(b)       Such Supplemental Declaration may contain additions, deletions, and modifications from those contained in this Declaration as may be necessary to reflect the different character, if any, of the added property.  In no event, however, shall such Supplementary Declaration revoke or modify the covenants, conditions and restrictions established by this Declaration or any previously filed Supplementary Declaration, as applied to the Subdivision or previously added property.

(c)        Upon such addition, owners of lots within such added property shall be entitled to the same benefits and privileges that Owners have or may have as set forth in this Master Declaration and any rules and regulations associated therewith.

(d)       For purposes of this Master Declaration, “adjacent property” shall mean any property that has a boundary line which is within a quarter (¼) mile of any part of the Property’s boundary line.

ARTICLE III

MEMBERSHIP AND VOTING RIGHTS
BY NEW ASSOCIATION

Section 1.        Membership.  Every person, or legal entity, who is the record owner of a fee or undivided interest in any Lot, which is subject to the jurisdiction of and to assessment by the Association, shall automatically be a Member of the Association.

Section 2.        Classes of Membership.  The Association shall have two classes of membership:

Class A — Class A members shall be all Owners with the exception of Declarant.  Class A members shall be entitled to one (1) vote for each Lot owned.  When two or more persons or entities hold an interest in a Lot, all such persons or entities shall be Class A members, provided, however, that the vote for such Lot shall be exercised as they, among themselves, determine, but in no event shall more than one (1) vote be cast with respect to any Lot.

Class B — The Class B member shall be Declarant, who shall be entitled to three (3) votes for each Lot owned. Class B membership shall cease and be converted to Class A membership on the happening of either of the following events, whichever occurs earlier: (i) at such time as Declarant has conveyed ninety-five percent (95%) or more of the Lots to Class A members, or (ii) January 1, 2010.

Section 3.        Suspension of Voting Rights.  All voting rights of an Owner may be suspended by the Board of Directors during any period in which such Owner is delinquent in the payment of any duly established assessment or is otherwise in default and/or in violation hereunder or under the Bylaws or rules and regulations of the Association.

Section 4.        Transfer of Control.  If, after the Declarant has conveyed ninety-five percent (95%) or more of the Lots to Class A members, there are not enough Lot Owners who desire to be on the Board, then the Declarant shall be entitled to close out the HOA bank account, write a cashier’s check for the balance thereof, deposit the same into escrow on behalf of the HOA, and shall thereafter be deemed to be released for any and all damages that accrued or may have accrued as a result of Declarant’s management of the HOA prior to the closing of such account.  From that point forward, the Lot Owners shall be individually responsible for all costs, expenses, claims and damages that accrue or may accrue as a result of the management of the HOA, or lack thereof.

ARTICLE IV

ASSESSMENTS

Section 1.        Covenants for Assessments.  The Declarant, for each Lot owned by it within the Property, hereby covenants, and each Builder Member and Owner of a Lot, by acceptance of a deed thereto, whether or not it shall be so expressed in any such deed or other conveyance, shall be deemed to covenant and agree to pay to the Association: (1) annual assessments or charges (as specified in Section 3 hereof); and (2) special assessments for a shortfall in the operating expenses and for capital improvements (as specified in Section 4 hereof), all of such assessments to be fixed, established, and collected from time to time as hereinafter provided.

Section 2.        Purpose of Assessments.  The assessments levied by the Association shall be used exclusively for the purpose of promoting the comfort, health, safety, recreation, and welfare of the Members, and for carrying out the purposes of the Association as stated in its Articles of Incorporation.

Section 3.        Annual Assessment.  Each Builder Member and Owner of any Lot shall pay an annual assessment (“Annual Assessment”) equal to $600.00, payable in advance in quarterly installments as follows: $150.00 shall be due on or before January 1st of each year; $150.00 shall be due on or before April 1st of each year; $150.00 shall be due on or before July 1st of each year; and $150.00 shall be due on or before October 1st of each year; PROVIDED, HOWEVER, Declarant shall not be required to pay the Annual Assessment or any Special Assessment for property it owns until at least seventy-five (95%) of the total Lots have been sold to Class A Members; and provided, however, that the Annual Assessment for any given year after the initial assessment year herein shall not exceed one hundred ten percent (110%) of the Annual Assessment for the previous year, without a two-thirds (2/3) majority vote of all of the Members entitled to vote, at a meeting duly called for such purpose, written notice of which shall be given to all Members at least thirty (30) days in advance setting forth the purpose of the meeting.  Notwithstanding the foregoing, no dues or assessments of any kind shall be made against Lots 154, 155 or 156 unless and until (1) a house is built and a certificate of occupancy is issued for any such Lot (in which event, Annual and Special Assessments shall only be made against the Lot so built upon), or (2) K. Paul Cash (a principal of Developer) sells any such Lot to a third-party purchaser (in which event, Annual and Special Assessments shall only be made against the Lot sold).

Section 4.        Special Assessments.  In addition to the Annual Assessment authorized by Section 3 hereof, the Association may, by a majority vote of its Members, levy in any assessment year or years a special assessment (“Special Assessment”) for the purpose of defraying, in whole or in part, the cost of any shortfall in operating expenses or for construction or reconstruction, unexpected repair or replacement of a described improvement including the necessary fixtures and personal property related thereto, or for carrying out other purposes of the Association as stated in its Articles of Incorporation.

Section 5.        Increase or Decrease in Rate of Annual Assessment.  Each year, the Board of Directors of the Association, by a two-thirds (2/3) majority vote, shall adopt an annual budget and set the amount of the Annual Assessment, as limited herein, taking into consideration the Association’s operating costs for the then current year, expected increases or decreases in such costs over the next year, and future needs of the Association.  The Board shall adopt the annual budget at least thirty (30) days prior to the commencement of each fiscal year.

Section 6.        Vote Required for Special Assessment.  The Special Assessment authorized by Section 4 hereof must be approved by a majority of the total eligible votes of the membership of the Association voting in person or by proxy, at a meeting duly called for such purpose, written notice of which shall be given to all Members at least thirty (30) days in advance and shall set forth the purpose of the meeting.

Section 7.        Commencement Date of Annual Assessment.  The first Annual Assessment provided for herein shall commence with the year 2007 and shall continue thereafter from year to year.

Section 8.        Due Date of Assessments.  The first quarterly installment of the Annual Assessment shall become due and payable on April 1, 2007, and shall be considered delinquent if not paid by April 31, 2007.  The assessments for each subsequent quarter after the first quarterly installment in 2007 shall become due and payable on July 1, October 1, and January 1 respectively, of each such year (and in the amounts set forth Section 3 above), and delinquent if not paid by last day of such month.  The due date and delinquent date of any Special Assessment under Section 4 hereof shall be fixed in the resolution authorizing such assessment.  Anyone becoming a Member of the Association after the quarter installment of the Annual Assessment due date shall pay a pro rata share of such quarterly installment based on the number of days remaining in that assessment quarter.  The pro rata payment shall be due and payable immediately upon becoming a Member of the Association. Notwithstanding the foregoing, each Owner shall have the option of paying the Annual Assessment for each year, in advance, on the first day of January of each year.

Section 9.        Delinquent Assessment Fines.  Any assessment not paid within thirty (30) days after such assessment became delinquent shall bear a late charge to cover administrative expenses incurred as a result of the late payment. Late charges on delinquent assessments and fines levied as provided in this Declaration shall not exceed the following rates computed on the outstanding balance, which shall include any late charges previously assessed and unpaid, from month to month:

(A)      If the outstanding balance does not exceed $299.00, a $25.00 fine shall be imposed; and

(B)       If the outstanding balance exceeds $299.00, but does not exceed $449.00, a $50.00 fine shall be imposed; and

(C)       If the outstanding balance exceeds $449.00, a $75.00 fine shall be imposed.

No charge may be imposed more than once each month for the delinquency of the same payment provided, however, that the imposition of a late charge on any delinquent payment shall not eliminate or supersede charges imposed on prior delinquent payments.

Section 10.      Owner’s Personal Obligation for Payment of Assessments.  The Annual and Special Assessments provided for herein shall be the personal and individual debt of the Owner of the property covered by such assessments.  No Owner may exempt himself or herself from liability for such assessments.  In the event of default in the payment of any such assessment, the owner of the property shall be obligated to pay interest at the highest rate allowed by law on the amount of the assessment from the due date thereof, together with all costs and expenses, including reasonable attorneys’ fees.

Section 11.      Assessment Lien and Foreclosure.  All sums assessed in the manner provided in this Article but unpaid, shall, together with interest as provided in Section 9 hereof and the cost of collection, including attorneys’ fees as hereinafter provided, thereupon become a continuing lien and charge on the property covered by such assessment, which shall bind such property in the hands of the Owner, and his or her heirs, devisees, personal representatives, and assigns.  The aforesaid lien shall be superior to all other liens and charges against the said property, except only for tax liens and all sums unpaid on a first mortgage lien or first deed of trust lien of record.  The Association shall have the power to subordinate the aforesaid assessment lien to any other lien.  Such power shall be entirely discretionary with the Association.  To evidence the aforesaid assessment lien, the Association shall prepare a written notice of assessment lien setting forth the amount of the unpaid indebtedness, the name of the owner of the property covered by such lien and a description of the property.  Such notice shall be signed by one of the officers of the Association and shall be recorded in the office of the County Clerk of Dallas County, Texas.  Such lien shall attach with the priority above from the date that such payment becomes delinquent as set forth in Section 8 above and may be enforced by the foreclosure of the defaulting owner’s property by the Association in like manner as a mortgage on real property subsequent to the recording of a notice of assessment lien as provided above, or the Association may institute suit against the owner personally obligated to pay the assessment and/or for foreclosure of the aforesaid lien judicially.  In any foreclosure proceeding, the Owner shall be required to pay the costs, expenses, and reasonable attorneys’ fees incurred.  The Association shall have the power to bid on the property at foreclosure or other legal sale and to acquire, hold, lease, mortgage, convey or otherwise deal with the same.  Upon the written request of any mortgagee holding a prior lien on any part of the Property, the Association shall report to said mortgagee any unpaid assessments remaining unpaid for longer than thirty (30) days after the same are due.

Section 12.      Common Areas Exempt.  All Common Areas as defined herein, shall be exempt from the assessments and lien created herein.

ARTICLE V

PROTECTIVE COVENANTS

Section 1.        Single Family Residential Purpose.  All Lots in the Subdivision shall be used for single-family residential purposes only.  No building or structure intended for or adapted to business or commercial use shall be constructed or maintained on any Lot.  No business or hobby may be conducted on any Lot which attracts excessive vehicular or pedestrian traffic to the Lot and/or the Subdivision.  No direct sales activities (excluding activities of the Declarant, Builder Members and community activities specifically approved by the Board) shall be conducted on any portion of the Subdivision.  “Garage sales” or “yard sales” are strictly prohibited without the prior consent of the Board.

Section 2.        Garages.  Every Living Space shall have and maintain a Garage large enough to accommodate, under roof, a minimum of two (2) full-sized automobiles.  Any such Garage must also (1) be of the same or substantially similar architectural design style as the Living Space, (2) use the same or substantially similar materials as those used for the Living Space, and (3) otherwise meet the requirements of the Town of Sunnyvale.  No Garage shall be permanently enclosed for conversion to any other use, without providing a substitute garage meeting the same requirements set forth in this Section 2.  Open carports are not permitted.  No garage door shall face the front of a residence or street which is the Owner’s address (i.e., a residence whose address is 123 Stone Canyon Drive MAY NOT have a garage which opens up to or faces Stone Canyon Drive).

Section 3.        Vehicles. No trailer, motorcycle, motor home, tent, boat, marine craft, recreational vehicle, automobile or truck (hereinafter, “Vehicles”) shall be kept, parked, stored or maintained on any portion of the Lot, except for the Garage or that portion of the Lot which is behind the front building line.  No Vehicles shall be kept, parked, stored or maintained on any public street.  The parking or storage of any wrecked, junked, inoperative, or unlicensed Vehicles on a Lot is strictly prohibited.

Section 4.        Pets.  No animals, livestock, poultry, exotic or dangerous pets of any type that may pose a safety or health threat to the community shall be raised, bred or kept on any Lot, except for a reasonable number of dogs, cats, or other generally recognized household pets.

Section 5.        Garbage and Refuse Disposal.  The collection and disposal of garbage and refuse shall be in strict compliance with local law.  No garbage or refuse shall be stored, kept, placed or maintained on any Lot where visible from any street, except solely on a day designated for removal of garbage and refuse.

Section 6.        Offensive Activities.  No noxious or offensive activity shall be carried on upon any Lot, nor shall anything be done thereon which may be or may become an annoyance or nuisance to Owners in the Subdivision.

Section 7.        Microwave, Satellite, Radio, and TV Antenna.  No microwave, satellite, radio or TV antenna over 6 feet in height above the roofline shall be erected on any Lot.

Section 8.        Irrigation Systems. The front yards of each Lot shall be irrigated prior to the issuance of a certificate of occupancy.  The irrigation system shall be fully automatic and be designed by a licensed irrigator.

Section 9.        Septic Systems.  No septic system for the disposal of sewage shall be constructed on any Lot.

Section 10.      New Construction Required.  All residences, garages, and major structural buildings in excess of 200 square feet shall be newly constructed on each Lot; and no residence, garage, or accessory building or structure in excess of 200 square feet may be brought in, pre-made, from another location.  Mobile homes or manufactured housing for residential use is strictly prohibited.

(a)        Masonry Requirement.  The exterior walls of all residential homes on a Lot in the Subdivision, including, but not limited to, their related garage, shall be veneered with brick, stone or stucco (or comparable EFIS system), PROVIDED, HOWEVER, that window dormers may be veneered with Hardiboard or its equivalent.

(b)       Permitted Materials for External Chimney.  The exterior walls of all chimneys on a Lot in the Subdivision shall be veneered with brick (or faux brick), stone (or faux stone), or stucco (or comparable EFIS system).  Use of Hardiboard, or its equivalent, is prohibited.

(c)        Permitted Materials for Retaining Walls.  All retaining walls constructed on a Lot in the Subdivision shall be veneered with stone. Use of railroad ties or concrete products is prohibited. 

(d)       Accessory Buildings.  All accessory buildings on a Lot in the Subdivision, defined for purposes of this Master Declaration (or any amendment thereto) as any structure on any such Lot which is not attached to a Living Unit, shall be veneered with substantially the same materials as those used for the Living Unit.

(e)        Driveways.  All driveways in front of the front building line and leading into a garage shall be veneered with concrete, brick or stone (so long as local code provides).  The concrete, however, may be stained or stamped.

Section 11.      Minimum Living Space.  Residences constructed on all Lots in the Subdivision shall have a minimum of 3,000 square feet of Living Space.  Under no circumstances may a residence exceed 2½ stories in height.

Section 12.      Architectural Controls.  Lots 138, 139, 140, 141, 142, 153, 159, 160, 165, 166, 171, 172, and 173 shall be subject to the following architectural controls: that no home, building, or structure shall commence to be erected, placed or altered on the foregoing Lots unless and until (1) the exterior elevation plans (from all four sides) and specifications, (2) a plan showing the proposed location of the subject structure on the Property, and (3) the exterior veneer materials (and related color scheme) to be used on the subject structure have been approved in advance by and at the sole and absolute discretion of the Developer; that the Developer expressly reserves the right to reject any plan submitted for any reason whatsoever; that the failure of Buyer (or Buyer’s successors or assigns) to strictly abide by the terms of the deed restrictions shall entitle Developer to (1) sue for injunctive relief, in which event Buyer (or Buyer’s successors or assigns) shall be responsible for Seller’s costs to pursue such injunction, including, but not limited to, attorneys’ fees, and (2) demand and receive from Buyer (or Buyer’s successors or assigns) liquidated damages in the amount of $100.00 per day such violation remains outstanding, plus Developer’s costs to collect such fees, including, but not limited to, attorneys’ fees, and (ii) possession to the Property, and Buyer shall deliver to Developer any remaining balance of the purchase price.  Any such plans or proposed materials to be used and submitted to Developer for approval and not approved within 15 days from the date received by Developer shall be deemed denied.

Section 13.      Fences.  No Owner is required to erect a fence. However, all perimeter fences (defined herein as being any fence lying within 10 feet of a Lot’s property line) that are erected shall be constructed of either wood, masonry products, wrought iron, or any combination of masonry product and wrought iron, PROVIDED, HOWEVER, that all wood fences on a Lot in the Subdivision shall be constructed in the following manner: (1) only cedar, treated hardwood, or other material approved in advance by the Homeowner’s Association shall be used (no pine wood shall be used); (2) all sides of the pickets and posts shall be sealed and stained (and regularly re-sealed and re-stained); (3) the style of the fence shall be “board-on-board” or other style approved in advance by the Homeowner’s Association; (4) the fence shall be regularly maintained; and (5) galvanized steel poles shall be used to support the fence at standard intervals on the interior of the fence.

In addition, any portion of a perimeter fence which abuts, or is erected adjacent to, open space, must be constructed of wrought iron materials. Any perimeter fence erected along following Lots shall use wrought iron materials:

  • the north and west sides of Lot 160;

  • the north and east sides of Lot 165;

  • the south and east sides of Lot 166;

  • the north and west sides of Lot 175; and

  • the south and west sides of Lot 176.

No fence on a Lot in the Subdivision may be erected between the front building line and the front property line, except for a security fence on top of any retaining wall (built in accordance with Town Code), so long as such fence is constructed with wrought iron materials.

In no event shall any perimeter fence be constructed in whole or in part with chain-link or barbed wire products. Fences shall not obstruct the flow of water in drainage easements.

Section 14.      Swimming Pools.  In-ground swimming pools are permitted so long as they comply with local code.  No above-ground pools greater than 6 feet in diameter (whether placed below grade or otherwise) are permitted.

Section 15.      Drainage.  An Owner of a Lot shall in no way alter the existing surface water drainage patterns established by Declarant.  Any alteration of drainage patterns shall be done at the Owner’s own risk and expense.  By acceptance of a deed to a Lot in the Subdivision, each Owner releaseD Declarant from any and all claims or damages such Owner may have as a result of changes made to existing surface water drainage patterns.

ARTICLE VI

MAINTENANCE

Section 1.        Duty of Maintenance.  Owners and occupants of any part of a Lot shall jointly and severally have the duty and responsibility, at their sole cost and expense, to keep that part of each Lot owned or occupied, including buildings, improvements, and grounds in connection therewith, in a well-maintained, safe, clean, and attractive condition at all times.  Such maintenance includes, but is not limited to, the following:

(a)        Prompt removal of all litter, trash, refuse, and wastes.

(b)       Lawn mowing including right-of-way between property line and curb.

(c)        Tree and shrub pruning.

(d)       Watering.

(e)        Keeping exterior lighting and mechanical facilities in working order.

(f)        Keeping lawn and garden areas alive, free of weeds, and attractive.

(g)       Keeping parking areas, driveways, and roads in good repair.

(h)       Complying with all government health and police requirements.

(i)        Repainting and/or repair of exterior damages to improvements.

Section 2.        Enforcement.  If, in the opinion of the Association any such owner or occupant has failed in any of the foregoing duties or responsibilities, then the Association may give such person written notice of such failure and such person must within fifteen (15) days after receiving such notice, perform the care and maintenance required.  Should any such person fail to fulfill this duty and responsibility within such period, then the Association through its authorized agent or agents shall have the right and power to enter onto the Lot and perform such care and maintenance without any liability for damages for wrongful entry, trespass or otherwise to any person.  The owners and occupants (including lessees) of any part of a Lot on which such work is performed shall promptly reimburse the Association for such cost.  If such owner or occupant shall fail to reimburse the Association within thirty (30) days after receipt of a statement for such work from the Association, then said indebtedness shall be a debt of all of said persons jointly and severally, and shall constitute a lien against said Lot on which said work was performed.  Such lien shall have the same attributes as the lien for Assessments and Special Assessments set forth in Article IV hereof, which provisions are incorporated herein by reference, and the Association shall have identical powers and rights in all respects, including but not limited to the right of foreclosure.

Section 3.        Repairs.  If an Owner, during his or her landscaping or construction, causes any destruction or damage to occur to trees or landscaping installed by Declarant, utilities, or to the sprinkler system installed by Declarant, which damage or destruction is not called for by the plans approved by Declarant, then such Owner, at his or her own cost and expense, will restore or replace any such items so damaged or destroyed.

ARTICLE VII

COMMON AREAS

Section 1.        Easements of Enjoyment.  Subject to the provisions of Section 3 hereof, every Member of the Association and their invitees shall have a right and easement of enjoyment in and to the Common Areas.

Section 2.        Title to Common Areas.  Declarant shall, prior to or at completion of the Subdivision (1) convey ownership of the Common Areas to the Association which shall be responsible for the exclusive management and control of the Common Areas and all improvements thereon, and (2) shall keep the Common Areas in good order and repair.

Section 3.        Extent of Easements.  The rights and easements of enjoyment created hereby shall be subject to the following:

(a)        The right of the Association to prescribe reasonable rules and regulations for the use, enjoyment, and maintenance of the Common Areas.  The Association shall have the right to enter into contracts for the operation and maintenance of the Common Areas;

(b)       Except the irrevocable option to acquire certain Common Areas granted to the Town of Sunnyvale set forth in the original plat of the Property, the Association shall not have the right to sell or convey the Common Areas, or any part thereof, without the prior written approval of a two-thirds (2/3) majority of the Owners;

(c)        The right of the Association to borrow money for the purpose of improving the Common Areas, or any part thereof; provided, however, the Association shall not have the right to mortgage the Common Areas, without the prior written approval of a two-thirds (2/3) majority of the Owners;

(d)       The right of the Association to take such steps as are reasonably necessary to protect the Common Areas, or any part thereof, against foreclosure; and

(e)        The right of the Association to suspend the easements of enjoyment of any Member of the Association during which time any assessment levied against such Member under Article IV hereof remains unpaid, and for any period not to exceed thirty (30) days for any infraction of its published rules and regulations.

Section 4.        Damage or Destruction of the Common Areas.  In the event any part of the Common Area is damaged or destroyed by an Owner of an Lot, or one of his or her guests, tenants, agents, or member of his or her family, such Owner hereby authorizes the Association to repair said damaged area. The Association shall repair said damaged area in a prompt, workmanlike manner in conformity with the original plans and specifications of the affected area, or as the same may be modified or altered with approval of the Association.  The amount necessary to effect such repairs shall be thereafter become a Special Assessment upon the Owner of the Lot who caused such damage.

ARTICLE VIII

MISCELLANEOUS PROVISIONS

Section 1.        Duration.  This Declaration and the covenants, restrictions, charges, and liens set out herein shall run with and bind the land, and shall inure to the benefit of and be enforceable by the Association, and every Owner of any part of the Subdivision, including Declarant, and their respective legal representatives, heirs, successors, and assigns, for a term beginning on the date this Declaration is recorded, and continuing through and including December 31, 2060, after which time said covenants shall be automatically extended for successive periods of ten (10) years unless a change is approved by a majority of the total eligible votes of Members of the Association voting in person or by proxy at a meeting duly called for such purpose, written notice of which shall be given to all Members at least thirty (30) days in advance and shall set forth the purpose of such meeting.  PROVIDED, HOWEVER, that no such change shall be effective prior to the recording of a certified copy of such resolution in the Deed Records of Dallas County, Texas.

Section 2.        Amendment.  This Declaration may be amended or terminated at any time by two-thirds (2/3) of the total eligible votes of the Members of the Association as defined in Article III hereof, with both classes of the membership voting together.  Members may vote in person or by proxy at a meeting duly called for such purpose, written notice of which shall be given to all Members at least thirty (30) days in advance and shall set forth the purpose of such meeting, provided that Declarant must consent thereto if such amendment or termination is to be effective prior to December 31, 2010.  Any such amendment or termination shall become effective when an instrument is filed for record in the Deed of Records of Dallas County, Texas, with the signatures of the requisite number of Owners of the Subdivision (and the signature of Declarant if prior to December 31, 2010).

Section 3.        No Right to Re-Subdivide or Replat.  Re-subdividing or replatting of any tract of land shall not be permitted except by written approval of Declarant, or, after Declarant has conveyed ninety-five percent (95%) of the Lots to Class A members, by the Board of Directors.

Section 4.        Enforcement.  The Association, any Owner or the Declarant ­­­shall have the right to enforce any of the covenants and restrictions set out in any Declaration hereafter filed by Declarant or, after Declarant has conveyed ninety-five percent (95%) of the Lots to Class A members, with the consent of the Board of Directors. Enforcement of the covenants and restrictions shall be by any proceeding at law or in equity against any person or persons violating or attempting to violate any covenant or restriction, either to restrain violation or to recover damages, and against the land, to enforce any lien created by these covenants; and failure by the Association, any Owner or the Declarant, to enforce any such covenant or restriction shall in no event be deemed a waiver of the right to do so thereafter.

Section 5.        Complaint By An Owner.  If any Owner of a Lot believes any other Owner of a Lot is in violation of this Declaration, he may so notify such Owner, in writing, explaining his or her reason(s) for such complaint.  If the Owner who is alleged to have violated this Declaration fails to remedy the alleged violation within ten (10) days after receipt of said written notice, the complaint may be transmitted, in writing, to the Board of Directors of the Association.  The Association shall then choose, within no more than ten (10) days, a neutral party to arbitrate the dispute.  The arbitrator shall announce his decision, after hearing from both Owners of the dispute, within thirty (30) days of his or her appointment.  The losing party shall thereafter pay all reasonable costs associated with such arbitration.

Section 6.        Complaint By The Association.  If the Association believes an Owner of a Lot is in violation of this Declaration, it shall so notify such Owner in writing, explaining its reason(s) for such complaint.  If the Owner fails to remedy the alleged violation within ten (10) days after receipt of said notice, then the Association shall have the right to (1) institute appropriate legal action or (2) submit the dispute to arbitration; such arbitration shall be held in accordance with the rules of the American Arbitration Association by the action of a majority of arbitrators chosen as follows: (a) one arbitrator shall be chosen by the Owner; (b) one arbitrator shall be chosen by the Association; (c) one arbitrator shall be chosen by the two arbitrators previously chosen.  If either party fails to choose an arbitrator within fifteen (15) days of Owner’s receipt of notice of the alleged violation, the other party may choose the other arbitrator.  The arbitrators shall announce their decision, after hearing from both parties to the dispute, within thirty (30) days of their appointment.  The losing party shall thereafter pay all reasonable costs associated with such arbitration, or, in the case of litigation, all costs and expenses, including reasonable attorney’s fees, in connection therewith.

Section 7.        Severability of Provisions.  If any paragraph, section, sentence, clause, or phrase of this Declaration shall be or become illegal, null, or void for any reason or shall be held by any court of competent jurisdiction to be illegal, null, or void, the remaining paragraphs, sections, sentences, clauses, or phrases of this Declaration shall continue in full force and effect and shall not be affected thereby.  It is hereby declared that said remaining paragraphs, sections, sentences, clauses, and phrases would have been and are imposed irrespective of the fact that any one or more other paragraphs, sections, sentences, clauses, or phrases shall become or be illegal, null, or void.

Section 8.        Notice.  Wherever written notice to a Member is permitted or required hereunder, such shall be given by mailing the same to such Member at the address of such Member appearing on the records of the Association, unless such Member has given written notice to the Association of a different address, in which event such notice shall be sent to the Member at the address so designated. Notice to the Association shall be given by mailing the same to the Association’s business office, as such is published by the Board from time to time.  In any such event, such notice shall conclusively be deemed to have been given by the Association by placing same in the United States mail, properly addressed, whether received by the addressee or not.

Section 9.        Titles.  The titles, headings, and captions which have been used throughout this Declaration are for convenience only and are not to be used in construing this Declaration or any part thereof.

Section 10.      Conflicts.  Whenever the application of any provision contained in this Declaration, or any Supplement thereto, conflicts with local, state or federal law, such local, state or federal law shall prevail.

ARTICLE IX

RIGHT OF THE TOWN OF SUNNYVALE

Upon dissolution of the Association, or if the Association fails or refuses to adequately maintain the appearance and conditions of the Common Areas which it is obligated to maintain under the provisions set forth herein, the Town of Sunnyvale, Texas, shall have the right and may assume the duty of performing all such maintenance obligations of the Association (1) at any time after such dissolution on giving written notice to the Owners, or (2) at any time after the expiration of thirty (30) days after giving the Association written notice thereof.  Pursuant to this end, and at such time, the Town of Sunnyvale, Texas, may collect any assessments, annual or otherwise, when the same shall become due, and, if necessary, enforce the payment of delinquent assessments in the manner set forth in this Declaration.  The power and authority herein granted to the Town of Sunnyvale, Texas, shall cease to exist at such time as the Association shall deliver to the Town of Sunnyvale, Texas, substantial evidence of its willingness and ability to resume management and/or maintenance of the Common Areas.

EXECUTED as of the day and year first written above.

STONE CANYON EAST, LP a Texas limited partnership

By:      Double River Investment Co., a Nevada corporation, its General Partner

By:
David Goodhart, Vice-President

THE STATE OF TEXAS       §

COUNTY OF DALLAS         §

This instrument was acknowledged before me on the ______ day of ___________, 2007, by David Goodhart, Vice-President of Double River Investment Co., a Nevada corporation, on behalf of said corporation, in its capacity as general partner of Stone Canyon East, LP, a Texas limited partnership, on behalf of said limited partnership.

{SEAL}

                                                                                                                                                                         Notary Public in and for the
State of Texas

EXHIBIT A

Legal Description

TRACT 1

BEING a tract of land situated in the Archibald Lanier Survey, Abstract Number 806 and the Benjamin Crownover Survey, Abstract Number 344, in the Town of Sunnyvale, Dallas County, Texas and being all of that certain 105.887 acre tract of land conveyed to Paul E. Cash by Deed recorded in Volume 2003093, Page 8718, Deed Records, Dallas County Texas and being more particularly described as follows:

BEGINNING at a 5/8-inch iron rod set for corner at the intersection of the South ROW line of State Highway No. 80 (a variable ROW) with the Easterly line of a Dallas Power & Light Company ROW (100′ ROW) described by Deed recorded in Volume 221, Page 287 Deed Records of Dallas County, Texas;

THENCE along the South ROW line of State Highway No. 80, the following bearings and distances:

SOUTH 79º21’02” EAST, a distance of 8.72 feet to a 5/8 inch iron rod set for corner;

SOUTH 86º41’02” EAST, a distance of 505.90 feet to a 5/8 inch iron rod set at the beginning of a non-tangent curve to the right, having a central angle of 02°21’08”, a radius of 5,729.58 feet and a chord bearing SOUTH 39º00’17” EAST, a distance of 235.20 feet;

Southeasterly, along said curve to the right, an arc distance of 235.22 feet to a 5/8-inch iron rod set at the end of said curve;

NORTH 52º02’35” EAST, a distance of 82.00 feet to a wood monument found for corner;

NORTH 08º50’03” EAST, a distance of 150.00 feet to a 5/8 inch iron rod set for corner;

SOUTH 79º30’21” EAST, a distance of 321.00 feet to a wood monument found for corner at the North end of a cutoff at the intersection of the South ROW line of State Highway No. 80 with the West ROW line of Paschal Road (a 60’ ROW, at this point);

THENCE: SOUTH 40º09’40” EAST, along said cutoff, a distance of 77.60 feet to a 5/8 inch iron rod set for corner at the South end of said cutoff;

THENCE: SOUTH 00º15’59” EAST, along the West ROW line of Paschal Road, a distance of 1,106.51 feet to a 5/8 inch iron road set for corner;

THENCE: NORTH 89º41’20” EAST, along the Southerly ROW line of Paschal Road (a 40’ ROW, at this point), a distance of 750.49 feet to a 5/8 inch iron rod set for corner at the intersection of the Southerly ROW line of Paschal Road with the East ROW line of Long Creek Road (a 50’ ROW);

THENCE: SOUTH 66º07’23” EAST, along said intersection, a distance of 20.42 feet to a 5/8 inch iron rod set for corner;

THENCE: SOUTH 37º26’05” EAST, continuing along said intersection, a distance of 37.51 feet to a 5/8 inch iron rod set for corner in the West ROW line of Long Creek Road;

THENCE: along the West ROW line of Long Creek Road, the following bearings and distances:

SOUTH 00º42’29” EAST, a distance of 558.04 feet to a 5/8 inch iron rod set for the corner;

SOUTH 89º17’31” WEST, a distance of 15.00 feet to a 5/8 inch iron rod set for corner;

SOUTH 00º42’29” EAST, a distance of 350.00 feet to a 5/8 inch iron rod set for corner;

NORTH 89º17’31” EAST, a distance of 15.00 feet to a 5/8 inch iron rod set for corner;

SOUTH 00º42’29” EAST, a distance of 326.56 feet to a 5/8 inch iron rod set for corner in the Northwesterly line of a 130′ City of Dallas ROW described by Deed recorded in Volume 313, Page 0557 Deed Records, Dallas County, Texas;

THENCE: departing the West ROW line of Long Creek Road and along the Northwesterly line of said 130′ City of Dallas ROW, the following bearings and distances:

SOUTH 35º53’31” WEST, a distance of 577.83 feet to a 5/8 inch iron rod set for corner;

SOUTH 25º09’06” WEST, a distance of 105.78 feet to a 5/8 inch iron rod set in the North line of a 100′ Texas Power & Light Company ROW;

THENCE: NORTH 89º17’51” WEST, departing the Northwesterly line of said 130′ City of Dallas ROW and along the North line of said 100′ Texas Power & Light Company ROW, a distance of 964.94 feet to a 5/8 inch iron rod set for corner in the aforementioned Dallas Power & Light Company ROW, (an 85′ ROW, at this point);

THENCE: departing the North line of said 100’Texas Power & Light Company ROW and along the Easterly line of said Dallas Power & Light Company ROW, the following bearings and distances:

NORTH 28º06’16” WEST, a distance of 1,268.15 feet to a 5/8 iron rod set for corner;

NORTH 61º53’44” EAST, a distance of 5.00 feet to a 5/8 inch iron rod set for corner (a 95’ ROW, at this point);

NORTH 28º06’16″WEST, a distance of 250.40 feet to an 5/8 inch iron rod set at the beginning of a curve to the right, having a 34°25’24”, a radius of 414.28 feet and a chord bearing NORTH 10º53’34” WEST, a distance of 245.17 feet;

Northwesterly, along said curve to the right, an arc distance of 248.90 feet to a 5/8 inch iron rod set at the end of said curve (a 95′ ROW, at this point);

NORTH 83º41’16” WEST, a distance of 15.00 feet to a 5/8 inch iron rod set for corner (a 60′ ROW, at this point);

NORTH 06º18’44” EAST, a distance of 805.20 feet to a 5/8 inch iron rod set for corner;

SOUTH 83º41’16” EAST, a distance of 15.00 feet to a 5/8 inch iron rod set for corner (an 80′ ROW, at this point);

NORTH 06º18’44” EAST, a distance of 400.00 feet to a 5/8 inch iron rod set for corner;

SOUTH 83º41’16” EAST, a distance of 5.00 feet to a 5/8 inch iron rod set for corner (a 100′ ROW, at this point);

NORTH 06º18’44” EAST, a distance of 200.00 feet to a 5/8 inch iron rod set for corner;

SOUTH 83º41’16” EAST, a distance of 10.00 feet to a 5/8 inch iron rod set for corner (a 110′ ROW, at this point);

NORTH 06º18’44” EAST, a distance of 82.63 feet to the PLACE OF BEGINNING and containing 105.887 acres of land.

SAVE AND EXCEPT THE FOLLOWING TWO PARCELS OF LAND:

PARCEL A

BEING a tract of land situated in the Archibald Lanier Survey, Abstract No. 806, Town of Sunnyvale, Dallas County, Texas and being a portion of that certain 105.887 acre tract of land conveyed to Paul E. Cash by Deed recorded in Volume 2003093, Page 8718, Deed Records, Dallas County, Texas and being more particularly described as follows:

COMMENCING at 5/8 inch iron rod set for corner at the intersection of the South ROW line of State Highway No. 80 (a variable ROW) with the Easterly line of a Dallas Power & Light Company ROW (100’ ROW) described by Deed recorded in Volume 221, Page 287, Deed Records, Dallas County, Texas;

THENCE: SOUTH 79°21’02” EAST, along the South ROW line of State Highway No. 80, a distance of 8.72 feet to a 5/8 inch iron rod set for angle point;

THENCE: SOUTH 86°41’02” EAST, along the South ROW line of State Highway No. 80, a distance of 392.53 feet to a point for corner at the TRUE PLACE OF BEGINNING;

THENCE: SOUTH 86°41’02” EAST, continuing along the South ROW line of State Highway No. 80, a distance of 50.00 feet to a point for corner;

THENCE: SOUTH 03°18’58” WEST, departing the South ROW line of State Highway No. 80, a distance of 85.91 feet to a point for corner;

THENCE: NORTH 86°41’02” WEST, a distance of 50.00 feet to a point for corner;

THENCE: NORTH 03°18’58” EAST, a distance of 85.91 feet to the TRUE PLACE OF BEGINNING and containing 4,296 square feet of land.

PARCEL B

BEING a tract of land situated in the Archibald Lanier Survey, Abstract No. 806, Town of Sunnyvale, Dallas County, Texas and being a portion of that certain 105.887 acre tract of land conveyed to Paul E. Cash by Deed recorded in Volume 2003093, Page 8718, Deed Records, Dallas County, Texas and being more particularly described as follows:

BEGINNING at a wood monument found for corner at the North end of a cutoff at the intersection of the South ROW line of State Highway No. 80 (a variable ROW) with the West ROW line of Paschal Road (a 60’ ROW);

THENCE: SOUTH 40°09’40” EAST, along said cutoff, a distance of 77.60 feet to a 5/8 inch iron rod set for corner at the South end of said cutoff;

THENCE: SOUTH 00º15’59” EAST, along the West ROW line of Paschal Road, a distance of 710.66 feet to a point for corner;

THENCE: SOUTH 89º44’01” WEST, departing the West ROW line of Paschal Road, a distance of 150.00 feet to a point for corner;

THENCE: NORTH 00º15’59” WEST, a distance of 300.00 feet to a point for corner;

THENCE: NORTH 56º51’48” WEST, a distance of 244.26 feet to a point for corner;

THENCE: NORTH 08º18’01” WEST, a distance of 250.00 feet to an angle point;

THENCE: NORTH 08º50’03” EAST, a distance of 150.00 feet to a 5/8 inch iron rod set of corner in the South ROW line of State Highway No. 80;

THENCE: SOUTH 79º30’21” EAST, along the South ROW line of State Highway No. 80, a distance of 321.00 feet to the PLACE OF BEGINNING and containing 4.884 acres of land.

TRACT 2

BEING a 1.027 acre tract of land situated in the Benjamin Crownover Survey, Abstract Number 344, in the Town of Sunnyvale, Dallas County, Texas and being a portion of a 321.9 acre tract of land described by Deed to Mary Lawrence recorded in Volume 77220, Page 2442 of the Deed Records of Dallas County, Texas (DRDCT) and being more particularly described as follows:

BEGINNING at a 5/8 inch iron rod set at the point of intersection of the Southeasterly line of a 130’ wide City of Dallas right-of-way described by deed recorded in Volume 313, Page 0557 (DRDCT) with the West line of Long Creek Road (a fenced 50’ wide right-of-way) from which a City of Dallas concrete monument bears NORTH 35º53’31” EAST, a distance of 7.92 feet;

THENCE along the West line of said Long Creek Road, SOUTH 00º42’29” EAST, a distance of 350.66 feet to a 5/8 inch iron rod set in the North line of a 100′ wide Texas Power & Light Company right-of-way described by Deed recorded in Volume 229, Page 2073 (DRDCT);

THENCE departing the West line of Long Creek Road and following the North line of said Texas Power & Light right-of-way, NORTH 89º17’51” WEST, a distance of 247.97 feet to a 5/8 inch iron rod set in the Southeasterly line of said 130′ wide City of Dallas right-of-way;

THENCE departing the North line of said Texas Power & Light Company right-of-way land following the Southeasterly right-of-way line of said 130′ wide City of Dallas right-of-way as follows:

NORTH 25º09’06” EAST, a distance of 34.46 feet to a 5/8 inch iron rod set for corner;

NORTH 35º53’31” EAST, a distance of 390.56 feet to the POINT OF BEGINNING;

CONTAINING within these metes and bounds 1.027 acre or 44,717 square feet of land more or less.