Deer Springs Ranch Owner’s Association

Revised Protective Covenants

June, 2006

Recorded at the Request of:

Deer Springs Ranch Owners Association

 

After Recording Mail to:

Deer Springs Ranch Owners Association

P O Box 254

Kanab, UT  84741

 

KNOW ALL MEN BY THESE PRESENT:

 

That this Amended and Restated Protective Covenants and Restrictions for Deer Springs Ranch (referred to herein as the “Protective Covenants”) amends, restates and supersedes the following:  (i)  Protective Covenants and Restrictions of Deer Springs Ranch Owners Association, a Planned Residential Development, dated November 24, 1981, Recorded December 2, 1981, as Entry No. 46443, in Book 071, at Pages 695-699; (ii) Supplemental Declaration dated June 21, 1997, Recorded April 23, 1998, as Entry No. 94028, in Book 0172, at Pages 766-770; (iii) any and all supplements, amendments and restatements to the foregoing, whether recorded or not.

 

These Protective Covenants affect the following real property:

 

All of Lots 1 through 305 and Common Areas according to the Official Plats for Phases A, B, C, D, E and F, Deer Springs Ranch on file in the records of the Kane County Recorder.

 

1.  TERM.  Said Protective Covenants shall run with the land and shall be binding on each member and all parties and persons claiming an interest therein, including their successors or assigns, for a period of twenty (20) years from the date of recording of these Protective Covenants.  Upon expiration of the twenty-year period, these Protective Covenants will be automatically extended for successive ten (10) year periods unless amended or rescinded by a proper action of the Association.

 

2.  MEMBERSHIP.  It shall be mandatory for the Owners of the properties to be a member of the Association, and as such, each member of the Association and the Association as a separate entity individually and severally, bind themselves pursuant to the terms of these Protective Covenants, and any Bylaws or amendments to said Bylaws adopted and passed by the Association and Rules and Regulations promulgated by the Association’s Board of Directors (the “Board”). Membership in the Association shall be appurtenant to ownership of property, including any part or parcel of the property described above, and such membership shall be inseparable from property ownership. The owner of each Lot will be called a member and will be entitled to one vote in all Association matters requiring a vote.

 

3.  LAND USE AND PRESERVATION.  The Properties have been subdivided into parcels and deeded to members of the Association and used as may be provided for in the Bylaws of the Association.  Property owned by the Association shall be referred to as Common Area.  The Association also holds various easements, lease rights, grazing permits, and water rights for the benefit of the Association.  The Board may regulate the use of any portion of the Common Areas or other Association property by Rule and Regulation except as specified in Item 12 below.

 

4.  LIVESTOCK AND PETS.   Horses shall not be permitted to free range on Common Area.  Authorized Cows are permitted to free range on Common Area and Owners Lots.  An Owner has the right to fence out any livestock.  Livestock of any kind may be kept on a Lot fenced in by a Member in such numbers as permitted by Kane County.  Notwithstanding the foregoing, the Board shall have authority to modify the terms of this Section 4, by Rules and Regulations governing livestock on the Common Areas.  Domestic pets shall be under the owner’s immediate supervision and control at all times.

 

5.  SANITATION.  All property covered hereby shall be maintained in a manner so as to create and promulgate a clean, beautiful, healthful, and natural environment.  Dumping of garbage or refuse and sewage disposal shall be accomplished in accordance with the requirements of the Utah State Health Department.

 

6.  NUISANCES/SIGNS.  No noxious or offensive activities shall be carried on upon any of the property covered hereby, nor shall anything be done thereon which may be or may become an annoyance or nuisance to the neighborhood.  No signs, billboards, or advertising structures of any kind shall be erected or displayed. One “For Sale” sign is permitted.  “Private Property,” “No Trespassing” and “No Hunting” signs shall be prohibited except as specifically authorized in writing by the Board. Hazardous materials may be stored or kept on the Lots or Common Area only when in compliance with all Utah State and Kane County applicable regulations.

 

7. FIREARMS - The discharge of firearms shall be allowed only within areas designated by the Association. The discharge of firearms on Members personal lots and/or designated Common Areas shall be in compliance with all Utah State and Kane County applicable regulations. 

 

8.  HUNTING.  The Association, through its Board, shall have the right to sell hunting privileges within the Ranch boundaries. A single written request by a lot owner shall suffice to prevent any and all future hunting activities sold or sanctioned by the Association on or across that lot owner's property, and this request shall remain in effect until it is rescinded in writing by the lot owner or until the property is transferred to a new owner.  All outfitters, hunters and their assistants, and guides, etc. must be accompanied by a designated DSROA approved guide on Ranch lands so as to insure that no unwanted trespass of member’s land takes place. Owners desiring to keep hunters off their lot(s) may request permission to post “No Hunting” signs in addition to giving notice to the Board of their desires.  Safety practices must be exercised in the use of firearms at all times and careless or unlawful use of firearms shall be cause for restrictive and/or disciplinary action by the Association. 

 

9.  VIOLATION - PENALTY.  If any person owning an interest in the properties, or their successors or assigns, shall violate or attempt to violate the Protective Covenants, or any Bylaws adopted by said Association, or any Rules and Regulations promulgated by the Board, the Board shall have the right and authority to prosecute any proceedings at law or in equity and either prevent said member from violating these Protective Covenants, Bylaws, and Rules and Regulations, and/or to recover damages or other dues for such violation.  Any person owning an interest in the properties, his heirs, successors, grantees, personal representatives or assigns, who violate or attempt to violate these Protective Covenants, does hereby agree to pay all costs and expenses of enforcing these Protective Covenants, the Articles, Bylaws and Rules and Regulations whether or not suit is filed, including the payment of a reasonable attorney’s fee. 

 

10.  IMPROVEMENTS.  All improvements to property described herein shall conform in every particular to the Zoning Ordinance of Kane County, Utah, as well as applicable amendments made to these Protective Covenants when properly adopted by vote of the Association.

 

11.  DIVISION OF PROPERTY.  Subject to Section 2 above, a member acquiring an interest in the properties shall be allowed to divide the interest acquired in said property into a smaller interest when allowed by county zoning.  Every Owner of property, excluding Common Area, within the properties shall be a Member of the Association.  Membership in the Association shall be mandatory and shall be appurtenant to the Owner's parcel of property (Lot).  Membership in the Association is nontransferable and shall not be separated from the Lot to which it appertains.

 

12.  EASEMENTS.  [see attached alternative language]

 

13.  DWELLINGS.  All lots shall be used only for residential purposes as herein specified.  No more than up to two (2) family dwelling houses or dwelling structures, if allowed by Kane County, shall be erected, altered, permitted, or maintained on any one lot except for a garage and the normal utility or livestock buildings appurtenant to a dwelling house.  No structure may be more than two stories above ground level.  Temporary dwellings and trailers may be permitted, provided they are in compliance with Kane County regulations.

 

14.  RULES AND REGULATIONS.    [see attached for draft language]

 

15.  ACCOUNTABILITY OF MEMBERS.  Each Member shall be liable to the Association for any damage to the Common Area and improvements thereon sustained by reason of the negligence or willful misconduct of said Member, their family, invitees and guests, both minor and adult.

 

16.  CREATION OF ASSESSMENT OBLIGATION.  Each Member as defined herein is deemed to covenant and agree to pay to the Association (1) Annual Assessments for Common Expenses, (2) Special Assessments, (3) Corrective Assessments, and (4) any other amount or assessment levied by the Board pursuant to these Protective Covenants; all such assessments to be established and collected as provided in these Protective Covenants. Such assessments will be in an amount as determined annually by the Board, except that increases in annual assessments for common expenses shall be less than ten (10) percent in any given year.

            In order to collect assessments, the Board will have the power to add interest not to exceed eighteen percent (18%) per annum for past due assessments. The Board will also have the authority to place a lien and foreclose the same on lots when assessments are past due for more than 12 months.

(a)        Annual Assessments.  Annual Assessments shall be used to satisfy Common Expenses of the Association.  The Annual Assessment will be set each year by the Board and the amount may vary from year to year because of variables such as: maintenance, equipment needs, inflation, etc.

(b)        Budget.  The Board will meet each December to set the budget for the new calendar year.  The Board will set the amount of the Annual Assessment to balance the budget for the coming year.  The Board will cause the budget to be mailed to each Owner, along with a statement detailing the charges justifying the Annual Assessment.  Input for the establishment of the budget is welcomed from the general membership. The Annual Assessment is due and payable upon receipt of the statement and is delinquent if not paid on or before March 1.

(c)        Delinquent Dues.  Members who have not paid their assessment by March 1 will also be denied any and all other Ranch benefits. All delinquent accounts will be charged interest at the rate of 18% per year compounded monthly beginning the first of January of that particular year. If unpaid by the January 1st of the following year their Ranch property will be subject to any and all collection proceedings deemed necessary by the Board. 

            (d) Special Assessments.  In addition to the Annual Assessment, a Special Assessment can be assessed to pay the costs of any one or more of the following:

                        (1) Approved by Board.  Special Assessments for the following extraordinary expenses can be levied by the Board without Member approval:

                                    (i) An extraordinary expense required by an order of a court; and

(ii) An extraordinary expense necessary to repair or maintain the Common Area or any portion thereof for which the Association is responsible where a threat to personal safety on the Common Area is discovered.  Prior to the imposition or collection of a Special Assessment pursuant to this subsection, the Board shall pass a resolution containing written findings as to the necessity of the extraordinary expense involved and why the expense was necessary and was not or could not have been reasonably foreseen in the budgeting process.  The resolution shall be distributed to the Members with the notice of Assessment.

(2)        Approved by Association.  Special projects which must be assented to by more than fifty percent (50%) of all votes cast by Members at a meeting duly called and held for such purpose pursuant to the Bylaws involve:

(i)         the replacement or improvement of the Common Area or Improvement thereon; and

(ii)        an extraordinary expense necessary to repair or maintain the Common Area or any portion thereof for which the Association is responsible.

            (e)        Corrective Assessments.  In addition to the Annual Assessment and any Special Assessments, the Association may, after a hearing, levy Corrective Assessments against a particular Owner and his Lot to pay the costs directly attributable to, or reimbursable by, that Owner, equal to the costs incurred by the Association for corrective action against the Owner taken under these Protective Covenants, the Bylaws, or the Rules and Regulations.

 

17.  NONPAYMENT OF ASSESSMENTS; REMEDIES.  Pursuant to Utah Code Ann. §§ 57-8a-101, et seq. (effective May 1, 2004), any assessment payment not paid when due shall, together with the hereinafter provided for interest and costs of collection, be, constitute, and remain a continuing lien on the Lot provided, however, that any such lien will be subordinate to the lien or equivalent security interest of any Mortgage on the Lot recorded prior to the date any such installment payment on assessments become due. 

 

The Board may elect to file a claim of lien against the Lot of the delinquent Owner by Recording a notice ("Notice of Lien") setting forth (a) the amount of the claim or delinquency, (b) the interest and costs of collections which have accrued thereon, (c) the legal description of the Lot against which the lien is claimed, and (d) the name of the Owner thereof.  Such Notice of Lien shall be signed and acknowledged by an officer of the Association or duly authorized agent of the Association.  The lien shall continue until the amounts secured thereby and all subsequently accruing amounts are fully paid or otherwise satisfied.  When all amounts claimed under the Notice of Lien and all other costs and assessments which may have accrued subsequent to the Notice of Lien have been fully paid or satisfied, the Association shall execute and Record a notice releasing the lien upon payment by the Owner of a reasonable fee as fixed by the Board to cover the cost of preparing and recording the release of lien.  Unless paid or otherwise satisfied, the lien may be foreclosed in a like manner as a mortgage or any other manner provided by law, including without limitation, a deed of trust as set forth in these Protective Covenants. If any payment on the assessment is not timely paid, the Association may, in its discretion, bring an action either against the Owner or to foreclose the lien against the Lot.  Any judgment obtained by the Association and any foreclosure commenced shall include reasonable attorney fees, court costs, and each and every other expense incurred by the Association in enforcing its rights.

 

18.  PERFECTION OF LIEN AND PRIORITY.  Pursuant to Utah Code Ann. §§ 57-8a-101, et seq. (effective May 1, 2004), upon the recording of Notice of Lien by the Manager or Board, such lien constitutes a lien on the Lot Owner’s interest in the property prior to all other liens and encumbrances, recorded or unrecorded, except:

            (a) tax and special assessment liens on the Lot in favor of any assessing lot or special improvement district; and

            (b) encumbrances on the interest of the Lot Owner:

                          (1)      recorded prior to the date of the recording of Notice of Lien; and

                          (2)      that by law would be a lien prior to subsequently recorded encumbrances.

 

The Board may enforce the assessment lien by sale or foreclosure of the Owner’s interest.  The Board may bid at a sale or foreclosure and hold, lease, mortgage, or convey the Lot that is subject to the assessment lien.

 

18.  DISCONTINUANCE OF COMMON UTILITY SERVICE AND SUSPENSION OF COMMON FACILITY USE AND VOTING RIGHTS.   [see attached for alternative language]

 

19. ASSIGNMENT OF RIGHTS AND OBLIGATIONS. An Owner/Member as defined herein may assign some or all of the rights and obligations appertaining to Membership in the Association through a lease agreement provided that:

(a) the lease agreement specifies which rights and obligations are being assigned to the lessee;

(b) a copy of the lease is provided to the Association within 30 days of execution;

(c) the Owner certifies to the Association that the lessee has been provided a copy of these Protective Covenants, the Bylaws and the current Rules and Regulations, and

(d) the duration of the lease is as least twelve months.

 

20.  STATEMENT OF ACCOUNT.  The Board shall issue a written statement indicating any unpaid assessment with respect to a Lot covered by the request, upon the written request of any Owner, and payment of a reasonable fee not to exceed Ten Dollars ($10.00).  The written statement shall be binding in favor of any person who relies in good faith on the written statement upon the (i) remaining Owners; (ii) Manager; and (iii) Board.  Unless the Manager or Board complies with such request within ten (10) days, any unpaid assessment that became due prior to the date the request was made is subordinate to a lien held by the person requesting the statement.  See Utah Code Ann. §§ 57-8a-101, et seq.

 

21.  PAYMENT BY ENCUMBRANCER.  An encumbrancer holding a lien on a Lot may pay any unpaid assessment due with respect to the Lot.  Upon such payment, the encumbrancer has a lien on the Lot for the amounts paid.  See Utah Code Ann. §§ 57-8a-101, et seq.

 

22.  MORTGAGE PROTECTION.  Notwithstanding all other provisions hereof, no lien created under these Protective Covenants, nor any breach of these Protective Covenants, nor the enforcement of any provision hereof shall defeat or render invalid the rights of the Beneficiary under any Recorded first Deed of Trust (meaning any deed of trust with first priority over other deeds of trust) upon a Lot made in good faith and for value; provided that after such Beneficiary or some other Person obtains title to such Lot by judicial foreclosure or by means of the powers set forth in such Deed of Trust or through a deed in lieu of foreclosure, such Lot shall remain subject to the Protective Covenants and the payment of all installments of Assessments accruing subsequent to the date such Beneficiary or other Person obtains title.  See Utah Code Ann. §§ 57-8a-101, et seq.

 

23.  PLAN REVIEW.  All construction plans, including a plot site plan, must be approved by the Board of Directors. After the Board has approved the plans, the owner must still obtain a building permit from the Kane County Building inspector and notify the Association when the permit is issued.

 

24.  LIABILITY INSURANCE.  The Board shall obtain a comprehensive policy or policies insuring the Owners, the Association, and its Board, officers, agents, and employees against any liability incident to the ownership, use or operation of the Common Areas which may arise among themselves, to the public, and to any invitees or tenants of the Property or of the Owners.  Limits of liability under such insurance shall not be less than $1,000,000.00 for all claims for personal injury and/or property damage arising out of a single occurrence, such coverage to include protection against water damage, liability for non-owned or hired automobile, liability for property of others, and such other risks as shall customarily be covered with respect to projects similar in construction, location and use.  Such policies shall be issued on a comprehensive liability basis, shall provide a cross-liability endorsement pursuant to which the rights of the named insured as between themselves are not prejudiced, and shall contain "a severability of interest" clause or endorsement to preclude the insurer from denying the claims of an Owner in the Development because of negligent acts of the Association or other Owners.

 

25.  BUSINESS OR COMMERCIAL ACTIVITY.  [see attached for draft language]

 

26.  VALIDITY.  Invalidation of any of the provisions contained in whole or in part shall not affect the validity of any of the other provisions herein contained and such provisions shall remain in full force and effect.

 

26.  AMENDMENTS.  These Protective Covenants may be amended, changed, or modified from time to time by action of the Association approved by affirmative vote or written consent of the members of at least three-fourth (3/4) of all votes cast.

 

DATED THIS ______ day of ____________________, 200__.

 

           

 

 

IN WITNESS WHEREOF, the President of the Association represents that these Protective Covenants were approved at a meeting of the Members called for such purpose by at least three-quarters (3/4) of all Membership votes cast.

 

 

 

                        DEER SPRINGS RANCH OWNERS ASSOCIATION

 

 

                        __________________________________________

                        By:                                           Its:   President

 

 

 

 

 

STATE OF UTAH,          )

                                        :ss.

County of __________.   )

 

 

 

            On this ______ day of ____________, 200__, before me personally appeared ________________________, whose identity is personally known to or proved to me on the basis of satisfactory evidence, and who, being by me duly sworn (or affirmed) did say that he is the President of Deer Springs Ranch Owners Association, a Utah nonprofit corporation, and that the foregoing document was signed by him on behalf of the Association by authority of its Bylaws, Protective Covenants, or resolution of the Board, and he acknowledged before me that he executed the document on behalf of the Association and for its stated purpose.

 

 

 

                                                                                    ____________________________________

                                                                                    Notary Public

Items still to be resolved:

 

12. Easements.

Option #1:

All lots are subject to utilities, access and drainage easements as specified on the recorded plat and established by prior use.  The Association, through its Board, may grant private and/or public utility easements over Association Common Area, including roadways, for the benefit of the Association and its Members.  Other than utility easements, no easement over Association Common Property may be granted to any public or private entity or individual without approval by a 2/3 majority vote of the Membership at a regular or special Membership meeting. 

Option #2:

All lots are subject to utilities, access and drainage easements as specified on the recorded plat and established by prior use.  The Association, through its Board, may grant private and/or public easements over Association Common Area, including roadways, for the benefit of the Association and its Members. 

 

14. Rules and Regulations

Option #1:

In the event there is a conflict between the Rules and Regulations and these Protective Covenants or the Association Bylaws, the Bylaws and these Protective Covenants shall control.   The Board shall have the authority to amend, change, add to and restate the Rules and Regulations (i) to aid it in administering the affairs of the Association, (ii) to insure that the Properties are maintained and used in a manner consistent with the interests of the Owners, (iii) to regulate the use of the Common Areas and to regulate the personal conduct of the Members and their guests thereon, and (iv) to establish penalties and fines for the infractions of any Rules and Regulations, the Bylaws and/or these Protective Covenants.  Changes to the Rules and Regulations shall be submitted to the Membership for comment for 45 days prior to implementation and any provision of the Rules and Regulations may be overturned by a majority vote of the Membership at any regular or special Membership meeting.

 

18. DISCONTINUANCE OF COMMON UTILITY SERVICE AND SUSPENSION OF COMMON FACILITY USE AND VOTING RIGHTS

Option #1:

The Board of Directors may suspend the voting rights of a Member for any period during which an assessment remains unpaid.  The Board of Directors may also, after a hearing, suspend the right of the Member to receive utility service paid as a common expense and to use the Common Area and Facilities. Utility services include, but may not be limited to, receiving water from wells operated by the Association.

            Before terminating utility services or right of access and use of recreational facilities, the Board shall give written notice to the Owner in the manner provided in the Bylaws.  The notice shall inform the Owner (i) that utility service (including the right to receive water from a well operated by the Association) or right of access and use of recreational facilities will be terminated if payment of the assessment is not received within thirty (30) days; (ii) of the amount of the assessment due, including any interest or late payment fee; and (iii) of the right to request a hearing as provided for in this Section.

An Owner who is given notice may request an informal hearing to dispute the assessment by submitting a written request to the Board within fourteen (14) days after the date on which the Owner receives the notice.  The hearing shall be conducted by the Board in accordance with the standards provided in the Bylaws.  If a hearing is requested, utility services or right of access and use of recreational facilities may not be terminated until after the hearing has been conducted and a final decision has been entered.  Upon payment of the assessment due, including any interest or late payment fee, the Board shall immediately take action to reinstate the terminated utility services and right of access and use of recreational facilities.  See Utah Code Ann. §§ 57-8a-101, et seq.

Option #2:

The Board of Directors may not suspend the voting rights of a Member for any period during which an assessment remains unpaid. 

 

The Board of Directors may, after a hearing, suspend the right of the Member to receive utility service paid as a common expense and to use the Common Area and Facilities. Utility services include, but may not be limited to, receiving water from wells operated by the Association. Before terminating utility services or right of access and use of recreational facilities, the Board shall give written notice to the Owner in the manner provided in the Bylaws.  The notice shall inform the Owner (i) that utility service (including the right to receive water from a well operated by the Association) or right of access and use of recreational facilities will be terminated if payment of the assessment is not received within thirty (30) days; (ii) of the amount of the assessment due, including any interest or late payment fee; and (iii) of the right to request a hearing as provided for in this Section.

An Owner who is given notice may request an informal hearing to dispute the assessment by submitting a written request to the Board within fourteen (14) days after the date on which the Owner receives the notice.  The hearing shall be conducted by the Board in accordance with the standards provided in the Bylaws.  If a hearing is requested, utility services or right of access and use of recreational facilities may not be terminated until after the hearing has been conducted and a final decision has been entered.  Upon payment of the assessment due, including any interest or late payment fee, the Board shall immediately take action to reinstate the terminated utility services and right of access and use of recreational facilities.  See Utah Code Ann. §§ 57-8a-101, et seq.

 

25. Business or Commercial activity

Option #1:

Subject to the following exceptions and the right of Owners to lease their residences, no part of the Properties shall ever be used or caused to be used or allowed or authorized to be used in any way, directly or indirectly, for any business, commercial, manufacturing, mercantile, storage, vending or other such nonresidential purposes by a Member, without the prior written approval of the Board.  Occupations without external evidence thereof, including, without limitation, traffic generation, which are merely incidental to the use of the Dwelling Unit as a residential home and for so long as such occupations are conducted in conformance with all applicable governmental ordinances shall be permitted.  The Association may engage in such commercial activities as the Board in its sole discretion deems appropriate. The board, in it’s sole discretion, reserves the right to assess an impact fee on commercial activities.