ARTICLE VI- PROPERTY RIGHTS IN RECREATION FACILITY

ARTICLE VI- PROPERTY RIGHTS IN RECREATION FACILITY.

Section 1. Purpose. The Recreation Facility as defined herein, shall be intended for the use and enjoyment of all lot owners in The Hammock Beach Estates Neighborhood District. During the Development Period, Developer may, at its sole discretion develop and install improvements and facilities thereon such as roadways, landscaping, sidewalks, trails, utilities, parking areas, recreational areas, swimming pool, clubhouse and additional facilities. Until thirty three (33%) percent of the lots have been conveyed, nothing contained herein shall be construed, as a representation, warranty or guarantee on behalf of the Developer to install said improvements and facilities, nor any other Developer's Improvements"; it remaining Developer's sole discretion to do so. The "Recreation Facility" together with the improvements thereon shall be conveyed to the Association as hereinafter provided for.
The Recreation Facility is to be devoted to and intended for the common use and enjoyment of the Owners and their families, guests and persons occupying dwelling units as house guests or tenants, subject to the fee schedules and operating rules adopted by the Association.

Section 2. Use of Recreation Facility. The Recreation Facility shall be and same is hereby declared to be subject to a permanent, non-exclusive easement in favor of all of the Owners of Lots lying within The Hammock Beach Estates Neighborhood District, for the use of such Owners, and the use of their immediate families, guests, licensees, invitees and other similar uses for all proper and normal residential purposes, for the furnishing of services and facilities for which the same are reasonably intended, and for the quiet enjoyment of said Owners. Such non-exclusive easement shall be appurtenant to each Lot and shall pass with the title to each and every Lot regardless of said easement being referred to or described in any instrument of conveyance.

By accepting any instrument of conveyance or by taking possession or occupying of any Dwelling Unit, each such person does agree to abide by and comply with all rules and regulations promulgated by the Association. It being understood that the compliance with such rules and regulations is necessary for the orderly enjoyment of the Recreation Facility.

Section 3. Limitations on Use. Each Lot Owner's permanent, lion-exclusive easement for the use and enjoyment in and to the Recreation Facility shall be subject to and limited by the following:

(a) The right of the Association to suspend any Owner's right to use the Recreation Facility for any period during which an assessment against said Owner's Lot remains unpaid.

(b) The right of the Association to suspend an Owner's right and enjoyment to use the Recreation Facility for a period not to exceed sixty (60) days for violation of the terms and conditions of the Declarations, the Articles and By-Laws or the rules and regulations of the Association.

Section 4. Operation and Maintenance. Upon conveyance of the Recreation Facility to the Association as hereinafter provided for, and upon completion of "Developer Improvements" as previously defined, it shall become the Association's responsibility to operate and maintain the Recreation Facility and Developer Improvements. It shall the obligation of the Association to access, levy, enforce and collect any and all assessments from the members of the Association which are required in order to maintain, operate, administer and repair the Recreation Facility.

Section 5. Non-Exclusively. When the Developer installs a swimming pool and/or clubhouse, (hereinafter referred to as Facility), the Developer, at all times prior to the conveyance of the Recreation Facility and the Association thereafter, shall have the right to grant use rights to the Facility to all other lot owners of Armand Beach East Subdivision not included in The Hammock Beach Estates Neighborhood District, their families, guests, lessees and invitees in and to the Facility In that event the Developer or the Association as the case may be, shall establish fee schedules for membership and reasonable rules and regulations relating thereto to be paid and complied with by the Lot Owners of The Hammock Beach Estates Neighborhood District. Notwithstanding the foregoing, the granting of such use rights shall in no way invalidate any terms or provisions of this Declaration and shall not reduce or abate any assessment payments by Members of the Association.

Section 6. Rights of Developer. Developer as long as it is the Owner of the Lot, shall always have the right, both prior to and subsequent to any conveyance of the Recreation Facility to the Association, to use the Recreation Facility for all lawful purposes which right it includes, but is not limited to, the following:

(a) The right to use, occupy, demonstrate and show all portions of the Recreational Facility for the purpose of promoting and aiding in the marketing, sale or rental or any portion of the real property subject to this Declaration Such rights may not be exercised in an unreasonable manner inconsistent with the rights of the Association and its members to use, occupy and enjoy the Recreation Facility. The exercise of such rights by Developer shall not reduce, abate or suspend in any way the obligation of Association and its members to maintain, operate, administer and repair the Recreation Facility.

(b) Display and erect signs, billboards and placards; and store, keep, exhibit and distribute printed, audio and visual promotional materials in and about the Recreation Facility.

(c) Establish and promulgate rules and regulations concerning the use of the Recreation Facility not consistent with any of the provisions of this Declaration.

Section 6.1 Developer's Right to Amend. The Developer, or a successor Developer, reserves the right to amend any of the provisions contained herein for so long as Developer owns any lot in Hammock Beach Estates. (Note that this Developer's Right to Amend appears in almost every amendment)

Section 7. Insurance.

(a) Upon conveyance of the Recreation Facility to the Association, the Association shall carry, at its expense, public liability insurance on the Recreation Facility and improvements thereon, with limits of personal injury liability of not less than Five Hundred Thousand Dollars ($500,000.00) with respect to any one person, and One Million Dollars ($1,000,000.00) with respect to any one accident; the limits for property damage liability shall be in an amount not less than One Hundred Thousand Dollars ($100,000.00). ~~The policy shall be written for the use and benefit of the Developer.~~ The Developer shall be named as an additional insured under such policies until such time as it no longer owns any Lots encumbered by this Declaration. The Association's public liability policy shall include all necessary endorsements evidencing contractual coverage for this grant.

(b) The Association shall deliver to the Developer a Certificate of insurance in compliance with the coverage obligations set forth herein together with evidence of payment hereof, including an endorsement which states that such insurance may not be changed, altered or cancelled except upon thirty (30) days prior written notice to the Developer.

(c) Except for the Developer's negligence, and notwithstanding any insurance requirement set forth herein, the Association shall indemnify and save the Developer and its officers, agents, servants and employees, harmless from and against any and all liability, damage, penalty, claim, loss, lien, action, suit, proceedings, costs or judgments arising from the Association's and Developer's use of the Recreation Facility or from non-compliance with any law or regulation, or from injury or death to any person or injury to property sustained by anyone in and about the Recreation Facility, whether justifiable or not, including attorneys fees (appellate or otherwise) and any expense in connection therewith. The Association shall, at its own costs and expense, and at Developer's election, defend any and all suits or actions which may be brought against the Developer or its officers, agents, servants and employees.

Section 8. Title to Recreation Facility. The Developer may retain the legal title to the Recreation Facility until such time ,as it has completed improvements thereon, and until such time as, in the opinion of the Developer, the Association is able to administer the same but, notwithstanding any provision herein, the Developer hereby covenants for itself, its successors and assigns that it shall convey the Recreation Parcel and all improvements thereon, to the Association, at no cost and with no mortgage encumbering same, not later than six (6) months subsequent to the date of conveyance by the Developer of fee simple record title to the last Lot.

ARTICLE V- PROPERTY RIGHTS IN RECREATION FACILITY.

Section 1. Purpose. The Recreation Facility is ~~to be~~ devoted to and intended for the common use and enjoyment of the Owners and their families, guests and persons occupying dwelling units as house guests or tenants and their guests, subject to the operating rules adopted by the Association.

Section 2. Use of Recreation Facility. The Recreation Facility ~~shall be and same~~ is ~~hereby~~ declared to be subject to a permanent, non-exclusive easement in favor of all of the Owners of Lots as described in this declaration, for the use of such Owners, and the use of their immediate families, guests, ~~licensees,~~ and invitees. and other similar uses for all proper and normal residential purposes, for the furnishing of services and facilities for which the same are reasonably intended, and for the quiet enjoyment of said Owners. Such non-exclusive easement shall be appurtenant to each Lot and shall pass with the title to each and every Lot regardless of said easement being referred to or described in any instrument of conveyance.

By accepting any instrument of conveyance or by taking possession or occupying of any dwelling unit, each such person does agree to abide by and comply with all rules and regulations promulgated by the Association. It being understood that the compliance with such rules and regulations is necessary for the orderly enjoyment of the Recreation Facility.

Section 3. Limitations on Use. Each Lot Owner's permanent, non-exclusive easement for the use and enjoyment in and to the Recreation Facility shall be subject to and limited by the following:

(a) The right of the Association to suspend any Owner's right to use the Recreation Facility for any period during which an assessment against said Owner's Lot remains unpaid.

Section 4. Operation and Maintenance. The Association has responsibility to operate and maintain the Recreation Facility ~~and Developer Improvements~~. It shall the obligation of the Association to access, levy, enforce and collect any and all assessments from the members of the Association that are required in order to maintain, operate, administer and repair the Recreation Facility.

Section 5. Insurance.

(a) The Association shall carry, at its expense, public liability insurance on the Recreation Facility and improvements thereon, with limits of personal injury liability of not less than Five Hundred Thousand Dollars ($500,000.00) with respect to any one person, and One Million Dollars ($1,000,000.00) with respect to any one accident; the limits for property damage liability shall be in an amount not less than One Hundred Thousand Dollars ($100,000.00). To meet its obligation under Article VIII of the Articles of Incorporation, the Association will also obtain a policy that provides indemnification coverage to the Association’s officers and directors with respect to their duties as officers and directors.

(b) The Association will maintain hazard insurance coverage (fire, extended coverage, and windstorm) at 100 percent of current replacement cost if such coverage is available and at a reasonable cost relative to the potential Association financial loss from hazard damage to the Recreational Facility

ARTICLE VII- ASSOCIATION OPERATION AND ASSESSMENTS

Section 1 Every owner of a fee simple undivided interest in any Lot as described herein, shall automatically become a member of The Hammock Beach Estates home Owner' 5 Association, Inc., a Florida corporation not for profit, and shall be bound by the Articles of Incorporation and By-Laws and all actions taken by the Association.

Section 2. The Association shall be organized for the purpose of maintaining and preserving the general aesthetic value of the Recreation Facility and Developer Improvements as herein defined by means of general and special assessments levied by the Association against the Lots.

Section 3. In order to provide funds for the operation and maintenance of the Association, the Association shall have the right to make, levy and collect the assessments against each Lot. All regular assessments shall be payable in monthly installments in advance on or before the 10th day of the month and any delinquent assessments shall bear interest at the rate of ten (10%) percent per annum until paid. Further, a late charge of Five ($5.00) Dollars shall be assessed.

Section 4. In addition to the foregoing, each initial owner shall pay an additional sum of One Hundred ($100.00) Dollars to the Association. Such sum shall be a working capital contribution to the Association and shall be used for the Association for the purposes set forth herein. Said sum shall be due and payable in full at the time that each Owner acquires title to a Lot.

Section 5. The Owner or Owners of any Lot shall be personally liable, jointly and severally, to the Association for the payment of any assessments arid the cost of collection, including but not limited to reasonable attorney's fees, whether suit be brought or riot. The Association shall be irrevocably granted the right to impose a lien against each Lot for the collection of the assessments levied, which lien shall secure the monies due for all assessments hereafter levied against the Owner of each Lot, which lien shall also secure all costs and expenses including reasonably attorneys fees which are incurred by the Association in enforcing the lien.

Section 6. The lien granted to the Association may be foreclosed in the manner as a real estate mortgage may be foreclosed in the State of Florida. The lien shall be effective from and after the time of recording in the Public Records of Flagler County, Florida. A Claim of Lien stating the description of the property, the name of the record title owner of the property, and the amount due and date when due.

Section 6(new) By-Laws. In addition to the provisions outlined above, the By-Laws of the Hammock Beach Estates Home Owner's Association, Inc. as recorded at Official Records Book 422, Page 447, Public Records of Flagler County, Florida, contains provisions relating to the imposition and collection of various categories of assessments. Such provisions shall be as fully enforceable as if the same were reproduced herein.

Section 7. The association shall determine and assess costs necessary for the are, preservation and maintenance of said road (Ocean Dune Circle) and shall collect same as provided in Article VII as a special assessment against lots 1-29 only. The Association shall have all lien and foreclosure rights for non-payment as provided in Article VII. At he discretion of the Association, the costs of maintenance and repair for the road may be budgeted as a capital expense item and collected in addition to the regular assessments; or alternatively, ay be assessed and collected as a special assessment as and when maintenance and repairs are necessary. Regardless of the method of collection, the Association shall collect and maintain separate records for all funds paid toward the care, preservation and maintenance of the road. Funds collected for road maintenance may be used only for said purpose; and said funds may not be co-mingled or use by the Association incident to other expenses. Likewise, no funds collected from regular assessments paid by all unit owners shall be used for the care, maintenance or preservation of the road identified as parcel B. At the discretion of the Board' of Directors of the Association, a three (3) member advisory committee consisting of three (3) lot owners from lots 1 through 29 inclusive, may be appointed by the Board of Directors of the association for purposes of providing direction to the Association on matters relating to the care, maintenance and preservation of the road, and expenses associated therewith.

ARTICLE VI- ASSOCIATION OPERATION AND ASSESSMENT

Section 1. Every owner of a fee simple undivided interest in any Lot as described herein, shall automatically become a member of The Hammock Beach Estates Homeowners Association, Inc., a Florida corporation not for profit, and shall be bound by the Articles of Incorporation and By-Laws and all actions taken by the Association.

Section 2. The Association shall be organized for the purpose of maintaining and preserving the general aesthetic value of the Recreation Facility and other Association property ~~Developer Improvements~~ as herein defined by means of general and special assessments levied by the Association against the Lots. The Association shall determine the time period for collecting regular or special assessments (e.g.: annually, semi-annually, quarterly or monthly). The Association may impose a fee for late payment of $10 for each month delinquent, and is entitled to take legal action, including property liens on members who are 6 months or more in arrears. The Board of Directors shall approve the assessment collection terms in accordance with Association By-Laws. ~~in conjunction with the approval of the annual Association budget or a revision of the budget.~~

Section 3. The Owner or Owners of any Lot shall be personally liable, jointly and severally, to the Association for the payment of any assessments and the cost of collection, including but not limited to reasonable attorney's fees, whether suit be brought or not. The Association shall be irrevocably granted the right to impose a lien against each Lot for the collection of the assessments levied, which lien shall secure the monies due for all assessments hereafter levied against the Owner of each Lot, which lien shall also secure all costs and expenses including reasonable attorneys fees which are incurred by the Association in enforcing the lien.

~~Section 4. The lien granted to the Association may be foreclosed in the manner as a real estate mortgage may be foreclosed in the State of~~ ~~Florida~~~~. The lien shall be effective from and after the time of recording in the Public Records of~~ ~~Flagler County~~, ~~Florida~~~~. A Claim of Lien stating the description of the property, the name of the record title owner of the property, and the amount due and date when due.~~

Section 4 5 By-Laws. In addition to the provisions outlined above, the By-Laws of the Hammock Beach Estates Home Owner's Association, Inc. as recorded at Official Records Book 422, Page 447, Public Records of Flagler County, Florida, contains provisions relating to the imposition and collection of various categories of assessments. Such provisions shall be as fully enforceable as if the same were reproduced herein.

ARTICLE VIII- ARCHITECTURAL REVIEW

Section 1. General. For as long as the Developer owns any lot, no building, structure, alteration, addition or improvement of any character, including but not limited to, exterior painting and roofing, other than interior alterations riot affecting the external appearance of a building or structure, shall be permitted upon any portion of the properties unless and until a plan of such structure, alteration, addition or improvement shall have been approved by the Developer as to the quality of workmanship and materials, color, harmony of external design with surrounding structures, location with respect to topography and finished grade elevation, its effect on the outlook from surrounding property and all other factors which will, in the opinion of the Developer, affect the quality of the planning and design of the Subdivision and the improvements thereof . Said approval shall not be unreasonably withheld.

Section 2. Review Process. Prior to the commencement of any improvements on said Lot, the Lot owner shall submit to the Developer a proposal for the intended improvements (including total available square footage). Said proposal shall include floor plan, all exterior elevations, a proposed site plan, a landscaping plan showing type, location and size of plants, and abbreviated specifications setting forth materials and colors for review and approval by the Developer. In the event that the Developer fails to approve or disapprove said plan within forty-five (45) days of receipt thereof, then such approval of the Developer shall not be required. The Developer shall have the power to promulgate rules and regulations and shall have the power to grant variances to any rule, regulation or restrictive covenant set forth herein. The submitted proposal shall be accompanied by a Fifty ($50.00) Dollar architectural review fee.

Section 3. Purpose. It is the intention of the Developer that all improvements be architecturally reviewed to ensure quality of design, materials and harmony of the structures all in order to preserve and enhance the character of the Subdivision. Developer, in its sole discretion, may, at any time it deems circumstances appropriate, abandon and discontinue said architectural review, taking into consideration whether or not a sufficient number of structures have been constructed within the Subdivision to set the tone and character of the Subdivision and neighborhood for which these covenants arid restrictions are intended. In the alternative, the Developer, in its sole discretion, may assign the functions of architectural review to a review committee of not less than three (3) individuals who must be lot owners within the Subdivision. Should Developer elect to make such an assignment to any such committee, at that time Developer shall have the right to promulgate reasonable rules and regulations for the appointment of committee members, membership, rules of procedures, and duties of the committee by the filing of a document to that effect in the Public Records of Flagler County, Florida, as an amendment to this Declaration.

ARTICLE VII- ARCHITECTURAL REVIEW

Section 1. General: It is the intention of the Association that all new construction, property additions and improvements be architecturally reviewed to ensure quality of design, materials and harmony of the structures ~~all~~ in order to preserve and enhance the character of the Subdivision. Accordingly, no building, structure, alteration, addition or improvement of any character, shall be permitted upon any portion of the properties unless and until a plan of such structure, alteration, addition or improvement has been approved by the Association. Alterations and improvements include, but are not limited to, exterior painting, roofing, room additions, decks, patio enclosures, pools or pool enclosures, and fencing. Interior alterations not affecting the external appearance of a building or structure are excluded. The review process will focus on those items called out in Article VIII Construction Standards. the quality of workmanship and materials, color, harmony of external design with surrounding structures, location with respect to topography and finished grade elevation, its effect on the outlook from surrounding property and all other factors which will, in the opinion of the Association, affect the quality of the planning and design of the Subdivision and the improvements thereof. The Board shall have the authority to act for the Association to approve or disapprove any planned improvements or additions and cannot delegate this authority to any independent committee, unless the committee is established to operate in accordance with State of Florida Law.

Section 2. Review Process: The Board shall have the authority to promulgate policies and procedures to implement the architectural review and approval process. Such procedures may include creation of an Architectural Review Advisory Committee to assist the Board in carrying out its responsibilities and may include a reasonable schedule of fees to defray the Association’s administrative expenses for the review process. Prior to the commencement of any improvements on a Lot, the Lot owner shall submit to the Association, in accordance with the procedures prescribed by the Board, a proposal for the intended improvements. Said approval shall not be unreasonably withheld In the event that the Association fails to come to a decision on ~~approve or disapprove~~ said plan within forty-five (45) days of receipt thereof, then ~~such approval of the Association shall not be required~~. said plan shall be considered approved.

Section 3. Armand Beach Estates East Sub-Association Reviews: The Board will forward all architectural review request plans received from lots 1-29 to the Armand Beach Estates East Sub-Association for their review and recommendation. The Board will take the recommendation of the Sub-Association into consideration as they make their decision on Architectural Reviews effecting lots 1 through 29.

ARTICLE IX- CONSTRUCTION STANDARDS

Section 1. General. In an effort to maintain continuity of building types, the following minimum standards must be maintained throughout the Subdivision. All of the following must be included as part of the submittal process to the Developer for review and approval prior to construction.

Section 2. Submittal Process; If the following information does not appear on the submittal plans the Developer may reject the submission in its sole discretion as incomplete. If the applicant is unclear as to what should be included on the submittal, he should then contact the Developer for clarification prior to submitting its documents.

Section 3. Materials/Standards. the following is a list of materials and standards to be used as a guideline in preparing the site plans and building plans and elevations for submittal and approval to the Developer, and then the Association after such rights are assigned to it by the Developer.

(a) Facade Treatment. All residential units shall be constructed of concrete block or wood. In no case shall modular pre-fab type units or mobile homes be permitted on any lot. Siding materials shall be limited to stucco, brick, stone, and various wood finishes, all of which must be approved by the Developer. In no event shall exposed concrete block be permitted. The exterior front of the residence shall be either rough wood, glass, brick, or stone or a combination with stucco.

(b) Roofing. All roof materials shall be of asphalt or wood shingle, cement or similar tile or metal. The Developer, and then the Association after such rights are assigned to it by the Developer, shall have the absolute right to decide the appropriateness of the type and style of the asphalt or wood shingle, cement or similar tile or metal that will be permitted. In no event shall flat built-up roofs be permitted even for screened-in porches without the Developer's approval.

(c) Colors. All building colors, including but not limited to, the following, roofs, walls, fences, trim, shall be submitted to the Developer for approval prior to installation. ~~Earth tones are recommended and should be used where feasible and practical to maintain neighborhood continuity.~~ Earth tones are recommended and should be used where feasible and practical to maintain neighborhood continuity. The Developer shall determine, in Developer's discretion, the color schemes acceptable for exterior roofs and painting. Developer shall make said determinations both initially and for any proposed color changes for so long as Developer owns any lots governed by these restrictive covenants. After Developer no longer owns any lots affected by these restrictive covenants, any exterior color changes either in roof color or exterior walls shall be submitted to the association for review and approval. The association shall endeavor to maintain the same general color schemes as established by the Developer."

Section 4. Minimum Dwelling Unit Size. No dwelling unit shall contain less than ~~1,250~~ 1600 square feet of air conditioned living area. An enclosed garage for a minimum of two cars shall be provided. The method of determining the square footage of the enclosed living area shall be to multiply together the horizontal dimensions of the walls forming the outer boundaries of the dwelling unit. Open porches, atriums, screened in patios, courtyards, garages and other similar type space, shall not be taken into account in calculating the minimum air conditioned enclosed living area square footage as required herein.

Section 5. Grades and Elevations. In order to preserve and maintain proper drainage, no changes in grades or elevation of any portion of a Lot (including the swale area) shall be made without prior approval of Developer. Final floor elevations and all other applicable grades must be shown on the site plan and approved by the Developer prior to construction. The minimum ground floor elevation shall be 13 feet above sea level for lots 1 through 13 inclusive. No living area shall be constructed below 13 feet above sea level for lots 1 through 13 inclusive.

Section 6. Drainage Swale. The Lot Owner shall maintain the drainage swale within or adjacent to the Lot. The location for the culverts and their invert grades, width and depth shall be such that they do not interfere or obstruct the overall drainage of the Subdivision. No driveway shall be constructed, maintained, or permitted to exist on any Lot if it obstructs or would obstruct or otherwise impede tire flow of surface drainage from adjacent lots within the Subdivision. It shall be each Lot Owner's sole responsibility to construct and maintain proper grades and elevations so as not to interfere with the drainage in the Subdivision and neighboring lots.

Section 7. Setbacks.

(a) No part of airy structure, except as may otherwise be provided for herein, shall be located nearer than twenty-five (25) feet to the front lot line, twenty-five (25) feet to the side of a corner lot, and seven and one-half (7-1/2) feet to the side lot line, and ten (l0) feet from the rear lot line, except that the roof line overhang of a residential structure may be constructed or extended to within five (5) feet of the side lot line. (In no event shall any part of any structure, except as otherwise provided herein, be located closer than twenty-five ,(25) feet from any road right-of-way line; front lot line shall mean that property line facing the front of any structure.)
All setbacks shall conform to the recorded plats

(b) ~~Swimming pools and sun decks, shall not be constructed closer than ten (10) feet from the rear and side lot lines.~~
All swimming pools and sun decks shall conform to zoning restrictions and the recorded plats.

Section 8. Maximum Width. The maximum width of a dwelling unit, including all garages, out buildings and other appurtenances of any kind, nature or description, on lots 1 through 13 inclusive, shall be a maximum width of 40 feet. No dwelling unit (with accompanying garages or other out buildings or appurtenances) constructed on lots 1 through 13 inclusive, may exceed 40 feet in width. This restriction does not apply to lots 14 through 29 inclusive.

ARTICLE VIII- CONSTRUCTION STANDARDS

Section 1. General: In an effort to maintain continuity of building types, the following minimum standards must be maintained throughout the Subdivision.

Section 2. Materials/Standards: The following is a list of materials and standards to be used as a guideline in preparing the site plans and building plans and elevations for submittal to and approval by the Board.

(a) Facade Treatment. All residential units shall be constructed of concrete block or wood. In no case shall modular pre-fab type units or mobile homes be permitted on any lot. Siding materials shall be limited to stucco, brick, stone, and various wood finishes, all of which must be approved by the ~~Developer.~~ Association. In no event shall exposed concrete block be permitted. The exterior front of the residence shall be rough wood, glass, brick, or stone or a combination with stucco.

(b) Roofing. All roof materials shall be of asphalt, fiberglass or wood shingle, cement or similar tile or metal. The Association shall have the absolute right to decide the appropriateness of the type and style of the asphalt, fiberglass, or wood shingle, cement or similar tile or metal that will be permitted. In no event shall flat built-up roofs be permitted even for screened-in porches without the Association’s approval.

(c) Colors. All building colors, including but not limited to the following: roofs, walls, fences, trim, shall be submitted to the Association for approval prior to installation. Earth tones are recommended and should be used where feasible and practical to maintain neighborhood continuity. The Association shall determine, in its discretion, the color schemes acceptable for exterior roofs and painting. The Association shall make said determinations both initially and for any proposed color changes. The association shall endeavor to maintain the same general color schemes as established ~~by the Developer.~~ throughout the community.

Section 4. Minimum Dwelling Unit Size: No dwelling unit shall contain less than 1600 square feet of air conditioned living area. An enclosed garage for a minimum of two cars shall be provided. The method of determining the square footage of the enclosed living area shall be to multiply together the horizontal dimensions of the walls forming the outer boundaries of the dwelling unit. Open porches, atriums, screened in patios, courtyards, garages and other similar type space, shall not be taken into account in calculating the minimum air conditioned enclosed living area square footage as required herein.

Section 5. Grades and Elevations: Grades and elevations must be in accordance with Flagler County Building Code. In order to preserve and maintain proper drainage, no changes in grades or elevation of any portion of a Lot (including the swale area) shall be made without prior approval of the Association. Final floor elevations and all other applicable grades must be shown on the site plan and approved by the Association prior to construction. The minimum ground floor elevation shall be 13 feet above sea level for lots 1 through 13 inclusive. No living area shall be constructed below 13 feet above sea level for lots 1 through 13 inclusive.

Section 6. Drainage Swale: The Lot Owner shall maintain the drainage swale within or adjacent to the Lot. The location for the culverts and their invert grades, width and depth shall be such that they do not interfere or obstruct the overall drainage of the Subdivision. No driveway shall be constructed, maintained, or permitted to exist on any Lot if it obstructs or would obstruct or otherwise impede the flow of surface drainage from adjacent lots within the Subdivision. It shall be each Lot Owner's sole responsibility to construct and maintain proper grades and elevations so as not to interfere with the drainage in the Subdivision and neighboring lots.

Section 7. Setbacks:

(a) All setbacks shall conform to the recorded plats and Flagler County Building Codes.

(b) All swimming pools and sun decks shall conform to zoning restrictions and the recorded plats.

Section 8. Maximum Width: The maximum width of a dwelling unit, including all garages, out buildings and other appurtenances of any kind, nature or description, on lots 1 through 13 inclusive, shall be a maximum width of 40 feet. No dwelling unit (with accompanying garages or other out buildings or appurtenances) constructed on lots 1 through 13 inclusive, may exceed 40 feet in width. This restriction does not apply to lots 14 through 29 inclusive.

ARTICLE X- EASEMENTS

A. Perpetual easements for installation, construction, maintenance, operation and inspections of all utilities and drainage for the benefit of the adjoining land owners, the Developer or any authority, commission, district, municipality or other agency are reserved. Additionally, easements are hereby reserved to the Developer and its assigns for the installation, construction, reconstruction, maintenance, operation arid. inspection of any and all services and utilities, including but riot limited, cable television, sidewalks, drainage, or waterways, which easements shall be confined to a five (5) feet width along the interior boundaries of the rear and side lot lines and a ten (10) foot width along the front lot line of every lot. Also, easements in general in and over each lot for the installation of electric, gas and telephone facilities for service to the Dwelling Unit are reserved.

B. Perpetual easements are reserved to The Hammock Beach Estate Home Owner's Association, Inc. for the maintenance and repair of any "Developer Improvements" which may be installed or placed upon any portion of said lot as well as an easement for ingress and egress of such lot for the purpose of obtaining access thereto.

C. No building, structure, fence, hedge, wall or (decorative item, such as rocks or posts, shall be erected nor any paving laid or filling or excavation done within the easement areas provided for in Paragraph 8(A) herein without the prior written consent of the Developer. No action shall be taken that would restrict or obstruct the use of said easements.

D. The plat of Armand Beach Estates identifies a pedestrian Beach Access Easement. A perpetual nonexclusive easement in favor of all lot owners and dwelling unit owners is hereby specifically created over and upon said easement for Pedestrian Beach Access.

ARTICLE IX- EASEMENTS

A. Perpetual easements for installation, construction, maintenance, operation and inspections of all utilities and drainage for the benefit of the adjoining land owners, the Association or any authority, commission, district, municipality or other agency are reserved. Additionally, easements are hereby reserved to the Association for the installation, construction, reconstruction, maintenance, operation, and inspection of any and all services and utilities, including but not limited, cable television, sidewalks, drainage, or waterways, which easements shall be confined to a five (5) feet width along the interior boundaries of the rear and side lot lines and a ten (10) foot width along the front lot line of every lot. Also, easements in general in and over each lot for the installation of electric, gas and telephone facilities for service to the Dwelling Unit are reserved.

B C. No building, structure, fence, hedge, wall or decorative item, such as rocks or posts, shall be erected nor any paving laid or filling or excavation done within the easement areas provided for in Paragraph IX (A) herein without the prior written consent of the Association. No action shall be taken that would restrict or obstruct the use of said easements.

C D. The plat of Armand Beach Estates identifies a pedestrian Beach Access Easement. A perpetual nonexclusive easement in favor of all lot owners and dwelling unit owners is hereby specifically created over and upon said easement for Pedestrian Beach Access.

ARTICLE XI- ADDITIONS TO THE PROPERTIES

Section 1. Annexation. All or any portion of the real property described in Exhibit "C" attached hereto may be annexed from time to time to the Properties by the Owner of all or any portion thereof, whether said Owner be the Developer or its successors, assigns, or devisees, without any consent of the Association or of the members of the Association being required. Upon any such annexation, the real property so annexed shall be subject to all of the terms, conditions, provisions, limitations, assessment and lien rights, easements and restrictions contained in this Declaration and the annexing party thereof and any Owners of residences thereon shall be entitled to all of the rights and privileges set forth in this Declaration and shall be subject to all of the burdens imposed by this Declaration including, but not limited to members in the Association.

Section 2. Developer. The Developer or its successors, assigns or devisees, from tune to time may, in their sole discretion, cause all or any portion of the real property described in Exhibit "C" attached hereto to become subject to the Declaration; but under no circumstances shall they be required to make any such additions, and no portion of the real property described in Exhibit "C" shall be subject to or encumbered by this Declaration until such time as said portion is annexed to the Properties in accordance with the provisions of this Article XI.

Section 3. Recording. Any annexations to the Properties in accordance with this Article XL shall be made by recording a supplementary Declaration of Covenants, Conditions and Restrictions in the Public Records of Flagler County, Florida, which shall subject the real property described therein to the terms and conditions of this Declaration.1

ARTICLE X- ADDITIONS TO THE PROPERTIES

Section 1. Annexation. The Association, from time to time may, in their sole discretion, and per Association Amendment procedures, initiate action to allow ~~cause~~ all or any portion of the real property within the Armand Beach East Subdivision ~~described in Exhibit "C" attached hereto~~ to become subject to ~~the~~ these Declarations.; but under no circumstances shall they be required to make any such additions., and no portion of the real property described in Exhibit "C" shall be subject to or encumbered by this Declaration until such time as said portion is annexed to the Properties in accordance with the provisions of this Article X. Upon any such annexation, the real property so annexed shall be subject to all of the terms, conditions, provisions, limitations, assessment and lien rights, easements and restrictions contained in this Declaration and the annexing party thereof and any Owners of residences thereon shall be entitled to all of the rights and privileges set forth in this Declaration and shall be subject to all of the burdens imposed by this Declaration including, but not limited to membership in the Association.

Section 2. Recording. Any annexations to the Properties in accordance with this Article X shall be made by recording a supplementary Declaration of Covenants, Conditions and Restrictions in the Public Records of Flagler County, Florida, which shall subject the real property described therein to the terms and conditions of this Declaration.

ARTICLE XII- TERMINATION AND AMENDMENT

Section 1. Except as set forth in Sections 3 and 4, below, the Developer hereby reserves. the right to amend, modify or rescind all or any part of this Declaration as it deems necessary or desirable, in its sole discretion, as long as it is the Owner of any Lot and as long as such amendment or modification does not substantially adversely change the ~~Subdivision Plat~~ general scheme of development.

In addition to the foregoing, the Owners of seventy-five (75%) percent of the Lots, with written consent of Developer, if the Developer then owns any Lots, may amend, modify or rescind such provisions of this Declaration as they deem necessary or desirable. Such amendments shall require the approval of at least two-thirds (2/3) of those Owners who are present at a meeting duly called at which a majority of members are present in person or by proxy.

In the event of any amendment or termination hereunder, the President and Secretary of the Association shall execute a certificate under oath reciting that the amendment was properly adopted ~~at a meeting duly called at which a quorum was present in person or by proxy, and at least a minimum percent of those entitled to cast a vote approved the amendment;~~ provided, however, that if such amendment or modification is made solely by the Developer as herein provided, it shall cause an appropriate certificate to be executed. The foregoing certificates evidencing approval of the amendment or modification to this Declaration shall be filed of record in the Public Records of Flagler County, Florida, along with the amendment or modification adopted. It shall not be necessary for Owners to join in any document to effectuate the amendment or modification.

Section 2. If in the future these covenants and restrictions are amended to create any "right of first refusal", any such right shall riot impair the rights of a first mortgagee to:

(a) Foreclose or take title to a townhouse (SIC) pursuant to the remedies provided in the mortgage, or

(b) Accept a deed (or assignment) in lieu of foreclosure in the event of default by a mortgagor, or

Section 3. Notwithstanding the provisions of Section 1, unless at least two-thirds (2/3) of the first mortgagees (based upon one vote for each first mortgage owned) or owners (other than the Developer) of the individual townhouses (SIC) have given their prior written approval, the Association shall riot be entitled to:

(a) By act or omission seek to abandon, partition, subdivide, encumber, sell or transfer the Recreation Facility owned, director or indirectly, by such Home Owner's Association for the benefit of the Owners (the granting of easements for public utilities or for other public purposes consistent with the intended use of the Recreation Facility shall not be deemed a transfer within the meaning of this clause);

(b) change the method of determining the obligations, assessments, dues or other charges which may be levied against any individual Lot Owner;

(c) By act or omission change, waive or abandon any scheme or regulations or enforcement thereof, pertaining to the architectural design or the exterior appearance of units, the exterior maintenance of units, the maintenance of the Recreation Facility, party walls arid parking areas, or the upkeep of laws and plantings;

(d) Fail to maintain fire and extended coverage on the Recreation Facility on a current replacement cost basis in an amount not less than one hundred (100%) percent of the insurable value (based on current replacement cost);

(e) Use hazard insurance proceeds for losses to the Recreation Facility for other than the repair, replacement or reconstruction of the Recreation Facility.

Section 4. The Developer intends that the provisions of this Declaration meet and be consistent with the Federal Home Loan Mortgage Corporation (FHMLC) Secondary Mortgage Market requirements in effect on the date hereof. Unless at least two-thirds (2/3) of the first mortgagees (based upon one vote for each first mortgage owned) or owners (other than the Developer) have given their prior written approval, not to be unreasonably withheld, no amendment would disqualify or preclude the purchase of first mortgages on the FHMLC secondary Mortgage market.

ARTICLE XI- TERMINATION AND AMENDMENT

Section 1. ~~Except as set forth in Sections 3 and 4, below,~~ The Association hereby reserves the right to amend, modify or rescind all or any part of this Declaration as it deems necessary or desirable and as long as such amendment or modification does not substantially adversely change the general scheme of development.

Such amendments, modifications, or rescissions shall require the approval of at least two-thirds (2/3) of those Owners who are present at a meeting duly called at which a majority of members are present in person or by proxy.

In the event of any amendment or termination hereunder, the President and Secretary of the Association shall execute a certificate under oath reciting that the amendment was properly adopted. The foregoing certificates evidencing approval of the amendment or modification to this Declaration shall be filed of record in the Public Records of Flagler County, Florida, along with the amendment or modification adopted. It shall not be necessary for Owners to join in any document to effectuate the amendment or modification.

~~Section 2. If in the future these covenants and restrictions are amended to create any "right of first refusal", any such right shall not impair the rights of a first mortgagee to:~~

~~(a) Foreclose or take title to a lot or residence pursuant to the remedies provided in the mortgage, or~~

~~(b) Accept a deed (or assignment) in lieu of foreclosure in the event of default by a mortgagor, or~~

~~(c) Sell or lease a lot or residence acquired by the mortgagee.~~

Section 2 3. Notwithstanding the provisions of Section 1, unless at least two-thirds (2/3) of the ~~first mortgagees (based upon one vote for each first mortgage owned) or~~ lot owners have given their prior written approval, the Association shall not be entitled to:

(a) By act or omission seek to abandon, partition, subdivide, encumber, sell or transfer the Recreation Facility owned, directly or indirectly, by such Home Owner's Association for the benefit of the Owners (the granting of easements for public utilities or for other public purposes consistent with the intended use of the Recreation Facility shall not be deemed a transfer within the meaning of this clause);

(b) Change the method of determining the obligations, assessments, dues or other charges which may be levied against any individual Lot Owner;

(c) Use hazard insurance proceeds for losses to the Recreation Facility for other than the repair, replacement or reconstruction of the Recreation Facility.

Section 4. The Association intends that the provisions of this Declaration meet and be consistent with the Federal Home Loan Mortgage Corporation (FHMLC) Secondary Mortgage Market requirements in effect on the date hereof. Unless at least two-thirds (2/3) of the first mortgagees (based upon one vote for each first mortgage owned) or owners (other than the Developer) have given their prior. Written approval, not to be unreasonably withheld, no amendment would disqualify or preclude the purchase of first mortgages on the FHMLC secondary Mortgage market.