KATUA FALLS

OBJECTIVES OF KATUA FALLS

Building Standards and Architectural Criteria

The 15 acre community of Katua Falls is designed as a small gated residential village, centrally located in Maggie Valley, North Carolina. Every attempt has been made to maintain a feeling of mountain landscape while offering amenities such as city sewer, city water, paved streets, under ground utilities, gated entry - all within easy reach of the valley sidewalks, restaurants and activities.

All these amenities are so close at hand, but with an ambiance of a retreat from the hustle and bustle in a gated community of attractive well built homes. To maintain the feeling of retreat, each home must be properly placed on the home site, and should blend in and complement the natural setting. Exterior design and colors will be carefully reviewed and planned.

Our hope is to create a village of high quality homes with an extra degree of attention to exterior design detail. High pitched roofs, gables, bay windows, natural stone, wood tones, and other natural siding materials should be incorporated. There is no minimum square footage requirement but the standards will be high for quality of materials and design detail.

I - PURPOSE OF THE ‘BUILDING STANDARDS & ARCHITECTURAL CRITERIA’ GUIDELINES

KATUA FALLS

General Information

1.01 Statement of Purpose. The purpose of the Katua Falls Standards and

Architectural Criteria is to produce an aesthetically pleasing community of high quality. Balancing the existing environment with comPatible and complimentary single-family homes, all combining to protect and enhance the property value of each resident. Specifically, the Katua Falls Standards and Architectural Criteria is the definitive guide for development and construction within Katua Falls. Among the objectives of this document are the following:

1. To outline and designate the responsibility of the community developer, the licensed builders and the lot owner, regarding the purchase, design, land clearing, site work, construction and use of the home site during and after construction.

2. To establish the standards and criteria for efficient, high quality, well designed and implemented development and building plans.

3. To establish procedures for the processing and review of all plans by the Architectural Control Committee. To encourage professional working relationships and coordinate the interaction between developer, builder, designer, broker and buyer to ensure the comPatibility of design and construction with the community and with the existing environment.

4. All lots within Katua Falls are conveyed subject to the Declaration of Protective Covenants, Conditions, Restrictions and Assessments for Katua Falls and, specifically therein, the provisions of Section III, the Architectural Review Committee. Each lot owner, successor or assign, owner’s employees, agents, invitees and licensees shall be bound by and meet and comply with the stipulations, requirements, terms and conditions contained in this document which has been promulgated pursuant to the provisions of the Declaration stated above. The objective being that the Katua Falls Building Standards and Architectural Criteria provides a basis to eliminate misunderstandings, misinformation and misrepresentations during the development and building process and to provide uniform standards to ensure the common goals and mutual benefits will be met.

KF handbook General Information

BUILDING STANDARDS and ARCHITECTURAL CRITERIA

1.2 DESIGN ENVIRONMENT

One of the major goals of every architect designing in Katua Falls Community should be to integrate harmoniously every man-made structure with its surrounding natural environment. As each building site is unique and space is limited, it will be necessary for all architects to prepare a thorough site analysis prior to the design of every project.

In addition to detailed site data, more general information of the surrounding physical environment must be included. Consideration should be given to prominent and potential views, steepness of the slope, water run off and orientation for privacy from the street, neighbors, etc., in addition to the materials, scale and form of existing homes in the Katua Falls community. These factors will be very important in blending the proposed design with the existing neighborhood fabric.

After preparing the site analysis, the uniqueness of each site becomes apparent. Because of this uniqueness, a residential design that was appropriate on one site may not be equally appropriate for another site. Therefore, the repetitive use of residential designs or the purchasing and use of stock plans is inappropriate in many situations.

KF handbook Design Environment

II - APPLICATION

of the

ARCHITECTURAL STANDARDS and CRITERIA

2.01 The following standards and criteria have been adopted by the Architectural Control Committee and shall apply to any and all construction prior to and after completion of the home, improvement or alteration of any structure, to any change to the exterior of any structure and to grading, excavating, tree trimming or removal, landscaping or any other change to the grounds of a lot within Katua Falls.

2.02 APPROVAL REQUIRED. No construction, improvement, alteration or change to any structure or lot, including removal of trees, preparation of a home site or installation of fixtures or structures on the lot, including, but not limited to driveway gates, driveway posts and mailboxes, shall commence in any manner or respect until written approval by the Architectural Control Committee has been granted.

2.03 SIZE OF RESIDENCE. The living area of each residence shall not be required

to contain a minimum of heated and/or air conditioned space exclusive of garages, entryways, porches or decks.

2.04 PHASES. Additional phases shall be added by amendment to this document

adopted by the Architectural Review Committee as additional phases are developed.

PHASE I – Gated Community

PHASE II – Gypsy Lane Lots

PHASE III – Neighborhood Commercial phase

2.05 REQUIRED GARAGE. A one car garage is required. In certain instances where

site conditions and home configuration are such that a one car garage would adversely impact the home configuration, a variance may be granted to allow for a carport or no garage.

ARCHITECTURAL STANDARDS and CRITERIA

2.06 SET BACK REQUIREMENTS. With the exception of driveways, retaining walls, walks and mailboxes no structure shall be allowed on any lot outside of the building set backlines. Minimum building set back requirements are as follows:

Front (adjoining access street) 10 feet from R.O.W.

Side 20 feet

Rear (opposite access street) 15 feet

Mechanical equipment and screening, therefore, and roof eaves may extend an additional two (2) feet into the side set back. In extreme cases exceptions to this requirement may be waived by the Architectural Control Committee.

2.07 PLACEMENT OF RESIDENCE. The placement of the building within the set

back limitations shall be in the most advantageous position to insure that no trees are unnecessarily disturbed and that the views and privacies of surrounding residences are not adversely affected. The Architectural Control Committee may reject a submittal which proposes removal of trees not absolutely necessary.

2.08 GRADING AND DRAINAGE. All buildings shall be designed so that the flow

of water from roofs and impervious surfaces is directed to existing drainage structures in such a manner as not to allow run-off to flow in any direction except to the existing drainage structure. Where run-off cannot be directed to existing drainage structures then additional drainage structures (i.e. culverts, drainage pipe, swales) must be installed to assure that the run-off is directed to existing drainage structures. All gutter downspouts must be connected to four (4) inch drainage piping and directed away from the structure, away from fill dirt and toward an existing drainage structure. Run-off water shall only empty from a drainage pipe or culvert onto original soil and never onto fill dirt. No building shall be constructed unless these drainage provisions can be met.

Existing trees and vegetation shall not be disturbed by grading or landscaping. It is imperative that existing soil not be disturbed and that the use of fill dirt be minimized. Swales, cuts, drainage piping and other disturbances to the soil shall be made to minimize the impact to the topography and to be landscaped to blend with the environment and reduce erosion.

Driveways shall be sloped to the “cut” side of the drive and shall not allow water to run-off the “fill” side of the drive. Run-off from a driveway shall follow a ditch along the “cut” side until a point where a culvert can be installed to take the run-off under the driveway and direct it toward existing drainage structures. Run-off shall be piped to original soil and shall not be allowed to discharge onto fill dirt. A culvert must be installed beneath the driveway where the driveway adjoins a community roadway when needed. Efforts should be made to camouflage culverts with rock facings and/or plantings.

ARCHITECTURAL STANDARDS and CRITERIA

2.09 DESIGN AND ELEVATIONS. It is a requirement for all homes within

Katua Falls have the appearance of natural wood siding with stone

and other natural material accents. Each architectural design shall be considered

on an individual basis with specific emphasis on impact and harmony with

surrounding homes and styles. The design elevations must clearly show the

exterior features and materials. The Architectural Control Committee shall limit

the duplication of home design.

A home which has been architecturally designed for one Owner on a particular

home site, and having individualized detail, may not be duplicated within the

community.

2.10 FOUNDATION AND FILL. Foundations shall be placed on original soil and not

on fill material. Fill material used for driveways or parking areas must be compacted and properly supported to minimize erosion. This may include retaining walls and landscaping.

2.11 EXTERIOR MATERIALS AND ROOFING. Some artificial, simulated or vinyl, or plywood siding materials are not permitted or are limited in use on the exteriors of a residence. These may be acceptable as soffits or window casements to reduce maintenance. Exteriors must be comPatible with the home design theme of the community. Architectural and dimensional asphalt shingles are permitted, as well as some metal roofs.

2.12 GUTTERS AND DOWNSPOUTS. Storm water flow must not be allowed to

discharge onto fill dirt and must be directed away from the home toward an existing drainage structure. Gutters must be used to collect storm water from roof areas. Gutters must be connected to downspouts and four inch solid (not perforated) piping to direct storm water to original soil and toward existing drainage structures.

2.13 FENCES AND WALLS. No fence or wall shall be erected within building set back lines. Lots shall not be fenced. Decorative entry features may be erected at the driveway entrance and a low voltage light may be used so long as the lighting is directed downward. Small fences may be erected in a decorative fashion if limited in size and impact on surrounding properties and approved by the Architectural Control Committee (See also 5.5)

ARCHITECTURAL STANDARDS and CRITERIA

2.14 MECHANICAL EQUIPMENT AND PROPANE TANKS. All mechanical equipment, including air conditioning equipment, shall be placed so that they are not visible to any roadway or to neighboring homes. If equipment cannot be so placed, then the equipment shall be shielded by landscaping or a wooden fence. All propane thanks larger than 80 gallons must be buried.

2.15 LIGHTING. All exterior lighting of the home sites shall be attached to the structure unless approved in writing by the Architectural Control Committee. All exterior lighting shall be buffered from surrounding residences and shall not be directed to any streets or roadways. Driveway entrance columns may have lights on them so long as they are lighted with low wattage bulbs, are contained in opaque covers or the light is directed down so as not to appear as bright lights along the roadways. Colored lighting is prohibited, except for holiday lighting which must be removed following the holiday. (See also 5.4)

2.16 MATERIALS AND COLORS. All exterior materials and colors should complement the surrounding environment. Color samples for new construction and restaining of existing buildings shall be presented to the Board in the form of color samples onsite for approval in advance of painting or staining. The use of garish and/or overly bright colors is uniformly prohibited. Unless otherwise approved in writing, band boarding, corner trim elements and bay window projections are to be stained the same as the body of the home. Trim color may be applied to windows, fascia, soffits, columns, balustrades and pedestrian doors. Garage doors and garage door trim should be the color of the foundation. Stone foundation homes should have dark colored garage doors. The use of natural woods, stucco and stone is encouraged while the use of imitation or less than highest quality material is discouraged. The use of plywood siding is never permitted.

ARCHITECTURAL STANDARDS and CRITERIA

III – LANDSCAPE GUIDELINES

Katua Falls’ natural setting offers a unique environment that must be recognized and preserved as a framework for development. The native environment is ecologically fragile and is difficult to replace once it has been disturbed. The Guidelines are intended to indicate the seriousness with which we approach alteration of Katua Falls' vegetation. These Landscape Guidelines are intended to protect the property values of all owners in the community.

3.1 EXISTING VEGETATION. Significant trees and areas of under story growth are essential, natural and aesthetic resources. They play a critical role in purifying air and water, providing wildlife habitat, enhancing natural drainage and controlling erosion. The trees and shrubs contribute to the quality of life in Katua Falls and are an inseparable part of its historical legacy. Consequently, the Architectural Control Committee is most concerned with trees and shrubs and has established these Guidelines to assure their preservation.

The following are a few general guidelines that must be followed regarding existing vegetation:

a. The removal of any tree or any area of under story growth without the notification of, and permission being granted by the Architectural Control Committee is prohibited.

b. Tree removal required to develop the property (i.e. the building footprint and paved area) may require planting of additional trees as mitigation at the Committee’s discretion.

c. The removal of trees on lots or parcels that have already been developed is discouraged by the Committee. Any such removal without the Committee’s approval is prohibited.

d. The Architectural Control Committee and any abutting home site owner will have the right to top up to a maximum of three (3) trees on the lot below if it significantly enhances the view. Tree topping will be kept to a minimum. Trees in front of a home may not be topped if the canopy is above a straight-line view and yet help hide the house from a distance. It is the intent that no homes will be visible from the valley or mountain across the valley. All tree topping will be done by developer approved contractors only

Violation of the above guidelines may result in fines up to $5,000 per tree touched.

3.2 DESIGN GUIDELINES: These guidelines have been prepared to help define the

appropriate site planning and landscaping that should be provided for the residences in Katua Falls. The basic objectives of a designer preparing site and landscape Plans for a home should be:

LANDSCAPE GUIDELINES

a. To minimize the impact of the home on the surrounding natural environment,

and to see that the site’s existing landscape is preserved in its natural state

insofar as possible.

b. To enhance the built environment and integrate structures into the surround-

ing natural environment.

c. To consider both long and short views to and from a project. Certain views

should be improved with the addition of selected landscape elements that

are appropriate for that purpose.

The completed landscaping should complement the residence and provide continuity between it and the surrounding vegetation. Architects and Landscape Architects should incorporate the existing natural vegetation into their plans and add to it in such a way as to produce a feeling of “modest cultivation” that “blurs the line” between man-made elements and the natural environment. All plant and tree material should be either native to the mountains or very comPatible with a “natural” look. An approved plant species list is included as an addendum.

3.2 GRASS, GROUND COVER AND MULCH:

1. The Committee generally discourages the use of large expanse of grassy

areas.

2. Areas shown to be grassed must be hydro seeded, seeded or sprigged to prevent run off.

3. Roadside right-of-ways that are disturbed during construction must be re-graded and hydro seeded so as to provide a continuous naturalized grass edge. This includes areas of nearby lots that are damaged during construction.

4. Ground cover is encouraged in shaded areas where it is difficult to grow grass.

5. Pine straw or mulch can be used as a ground cover in areas of medium or dense shade.

6. All driveway cuts and fill must be naturalized.

It should be noted that approval of a landscape plan is conditional, pending a field review of the in place installation. At that time, additional landscaping may be required to reduce the visual height of a tall structure, to provide erosion control and additional screening to correct damage from construction activity, or for other reasons as deemed appropriate by the Committee. All specimen trees shown on the tree survey outside of the building envelope shall be carefully protected from construction activities in any manner deemed appropriate by Katua Falls including protective fencing. Any trees that are damaged or die as a result of construction activity will require mitigation and a possible fine.

LANDSCAPE GUIDELINES

3.2 APPROVED PLANT SPECIES LIST

(These are recommendations not requirements)

Shrubs and small trees:

Rhododendrons and mountain laurel

Hybrid Azalea

Oak Leaf Hydrangea

Blueberries

Oregon grape

Dog Hobble

Witch Hazel

Mountain Ashe

Dogwoods

Maples designed for Fall color

Ground Covers:

Day lily

Dog Hobble

Ferns

Pachysandra

Hostas

Flowering Trilliums, Blood root, wild blue geraniums, and other purchased native wildflowers

Tufting Grasses

Trees:

Native Hardwoods

Apple

Evergreens (white pine, cedar, spruce, arborvitae)

Beware of new pests affecting some of our native species

Accents with large landscape boulders add dimension to the natural plantings.

Planting in groups and beds rather than rows of vegetation create a naturalized look.

IV - EXISTING HOME GUIDELINES

The primary purpose of the Covenants and Guidelines is to foster the creation of a community which is aesthetically pleasing and functionally convenient for all residents and visitors. These restrictions governing proposed homes, homes under construction and existing homes require every home in Katua Falls to be maintained in a manner conforming to these guidelines.

4.1 IMPROVEMENTS: No alteration, including painting, staining or re-roofing, affecting a change in the exterior appearance of any building, structure or landscape shall be made without prior approval of the Committee. A request for approval must be submitted to the Committee including the review fee, a completed Improvement Review Form, all drawings necessary to define the proposed improvement, color samples and site stakeout. When approved, a Katua Falls building permit must be issued prior to commencement of any clearing, material delivery, painting or construction.

4.2 LANDSCAPING: Every property owner is responsible for preventing the development of any unclean, unsightly or unkempt conditions of buildings or yards, which shall reduce the beauty of the neighborhood as a whole or the specific area. Any proposed changes in landscaping such as fences, fountains, lighting, game structures, drives, walks, landscape structures and statuaries must be approved by the Committee.

4.3 TREE REMOVAL: Generally tree removal for existing homes will not be approved unless the tree is diseased, damaged or a threat to the home. Any tree that is approved for removal will generally require mitigation with native hardwoods.

V – APPURTENANCE GUIDELINES

All exterior alterations and improvements to a home site will require prior approval from the Committee. Exterior lighting requires Committee approval, and must be installed so as not to disturb either neighbors or nearby traffic or be seen from a distance. The following are specific guidelines for the design or alteration of appurtenances.

5.1 MAILBOXES: Each home is required to have a typical Katua Falls mailbox with the appropriate lot number or assigned street number. The owner’s name may be applied to the side of the mailbox per an approved design detail.

5.2 SIGNAGE: The use of any sign, for the purpose of renting or selling of a property, is limited to a 12”x18” sign which may be hung from under the mailbox or attached to a pole. Single-family homes may be identified only by the graphics included on the mailbox or by a small decorative sign with the property name.

5.3 BOATS AND CAMPERS: The storage of boats and campers in yards or driveways for more than 3 days is prohibited. They are required to be stored out of sight in garages or off site.

5.4 EXTERIOR LIGHTING: All exterior lighting shall be installed so as not to

disturb neighbors or impair vision of traffic on nearby streets or be seen from a

distance. Additional guidelines are as follows.

a. Landscape plans must indicate all proposed exterior landscape lighting. The use of exposed, non-hooded spotlights will not be approved. Low voltage or low wattage, high quality metal fixtures are encouraged.

b. Exterior lighting should be limited to areas where there will be pedestrian movement and should be extinguished when not in use.

c. Lighting within street rights-of-way is not allowed.

d. The source of exterior lights should not be visible from property lines or streets.

e. (See also: 2.15)

Because each design and site is unique, lighting plans will be evaluated based on the unique characteristics of the site. Katua Falls has direction to disallow plans that introduce excessive lighting into the landscape.

APPURTENANCE GUIDELINES

5.5 FENCING: All fencing designs must receive Architectural Control Committee approval and a permit is required prior to installation. Fences shall not exceed five (5) feet in height and are required to be heavily screened with continuous landscaping. Fencing may only be used to surround and soundproof equipment, or to provide a small pet run close to a house. (See also: 2.3)

5.6 SATELLITE DISHES: Cable is available. Satellite dish placement requires Katua Falls approval. A 20” diameter or less satellite dish, or 1 meter if required by FCC regulations, may be placed on the roof of a home provided it is not visible from the street and is properly screened from adjoining property. If ground placement is necessary, landscaping will be required for screening views from streets or adjoining property. The dish must be painted a color that will blend with the surrounding roof or screening.

5.7 PLAY STRUCTURES, BASKETBALL, GOALS, ETC.: All play structures,

basketball goals and related objects must be approved by the Committee prior to installation. Katua Falls will require that the objects be painted to blend with the surrounding environment and may require additional plantings to screen objects from neighboring views.

VI – PROCEDURE FOR DESIGN REVIEW

6.1 EXPLANATION OF THE PROCESS. Specific review procedures have been established by the Architectural Control Committee to provide uniform and equitable administration of the plan review process. In order to uniformly apply Katua Falls Standards and Architectural Criteria these procedures must be strictly followed and submittals must be made on a timely basis.

Attached in the “forms” section is a CONSTRUCTION REVIEW APPLICATION AND AGREEMENT for each submittal. Both the application and the applicable fee must accompany any submittal to the Architectural Review Committee’s review. The current review fee is $250.00.

The intent of the Architectural Control Committee is to uniformly and objectively review submittals to determine whether they meet Katua Falls Standards and Architectural Criteria. The Architectural Control Committee has in its sole discretion the power to reject any submittal for any reason whatsoever, including purely aesthetic grounds. However, the Committee shall not arbitrarily or unreasonable deny approval.

The Architectural Control Committee shall have thirty days from receipt of a properly completed and submitted application within which to review the application and either, approve or disapprove, or request additional information. Should the Committee fail to disapprove or request additional information within thirty days, it shall be conclusively presumed that Architectural Control Committee has approved such application. Upon approval of any application, the applicant must begin construction within 120 days or, at the discretion of the Committee, forfeit the approval, submit a new application, or request an extension.

The staff will preview every project before conceptual, preliminary and final review. They will also review the lot stake out and the submission of acceptable working drawings, specifications, landscaping plan and color samples.

No site clearing, material deliveries or construction may begin without first obtaining Architectural Control Committee approval. Therefore, the review process must begin early enough to obtain approval that coordinates with the construction schedule.

PROCEDURE FOR DESIGN REVIEW

6.2 PROCEDURE FOR APPLICATION. The purpose of the application phase is

to determine if the proposed structure meets Katua Falls Building Standards and

Architectural Criteria. The Architectural Control Committee will review the submittal to determine its consistency with Katua Falls Standards and Architectural Criteria but will not review for building, plumbing, or other codes in effect in Haywood County or Maggie Valley. Approval by the Architectural Control Committee is required prior to commencing construction on any lot within Katua Falls.

Applications must contain the following documentation:

1. The name of the Licensed Builder selected to construct the home.

2. One set of final construction plans (11” x 17”) including elevations, floor plans, and retaining wall and foundation requirements if on a sloped lot.

3. Site plan locating the proposed home on the lot and showing location of driveway and turnaround area also if any trees greater than 4 inches in diameter are to be removed they must be identified on the Site Plan.

4. Material specifications for all exterior surfaces, including roofs, walls, trim, exterior doors and windows.

5. Exterior lighting plan.

6. Landscape plan.

7. Completed application and check for review fee of $250.00.

6.3 PROCEDURE FOR VARIANCE. In those instances where strict compliance with the specific term, conditions, or criteria provided in the Katua Falls Building Standards and Architectural Criteria would create an undue hardship by depriving the owner the reasonable use of his site; or where, in the opinion of the Architectural Control Committee, there are unusual characteristics which affect the property or use in question; and the strict compliance with Katua Falls Building Standards and Architectural Criteria is unfeasible. Then the Committee may grant a variance from the Standards as long as the general purpose and intent of the Standards are maintained. All variance requests shall be in writing. Any variance shall be considered unique to the specific site and conditions for which it was granted and shall in no respect neither constitute a change in or affect the terms and conditions as set forth in this document, nor set any precedent for future decisions. All variances granted by the Architectural Control Committee must be in writing. No verbal variance shall be effective.

PROCEDURE FOR DESIGN REVIEW

6.4 ENFORCEMENT PROVISIONS: In order to ensure that all development and

construction within Katua Falls adheres to the Katua Falls Building Standards

and Architectural Criteria and that all builders fully comply with their approved

plans throughout implementation, and that adopted rules, regulations and other procedures are strictly upheld, any violations must be properly noted and forcefully pursued to its conclusion. The Architectural Control Committee is charged with the duty of enforcement. Members of the Committee should bring any violations to the attention of the Committee as soon as possible to prevent any undue expense or hardship on the builder/owner.

In the event any owner or builder violates or breaches any of Katua Falls Building Standards and Architectural Criteria or other rule procedure, such person shall immediately be notified to correct the infraction. A continued violation shall result in the Architectural Control Committee of the Association, its designees, and other parties having the right of enforcement to seek all available remedies at law or in equity to compel compliance in enforcement of the Katua Falls Building Standards and Architectural Criteria. The costs and attorney’s fees incurred with such proceedings by the part having the right of enforcement who prevails in such action shall be borne by the person alleged to be in violation. The remedies shall include but not be limited to injunctive orders to stop construction, imposing a reasonable fine and securing such fine by lien against the property, revoking prior approvals, withholding necessary or requested approvals, and other like remedies.

In the event of a dispute. Remediation….(Gavin Brown)

VII – EXISTING HOME IMPROVEMENT REVIEW

7.1 LETTER OF INTENT: The owner should inform Katua Falls as to the intent

and purpose of the proposed improvement.

7.2 IMPROVEMENT REVIEW FEE: This fee is for the review process. ($250.00)

7.3 COLOR SAMPLES: Samples are most important when applying for improvement approval because of the necessity of matching existing materials. When changing the color of a home, color samples must be applied to the home for inspection by a Katua Falls representative.

7.4 SITE PLAN: A plan with dimensions of the property must be submitted showing the location(s) of the proposed improvements, setbacks and lot coverage percentage.

7.5 DRAWINGS: One set of plans and elevations shall be submitted to adequately define and explain the improvement sufficiently. Drawings representing the existing structure(s) will also need to be submitted.

7.6 COMPLETED IMPROVEMENT REVIEW FORM: After reviewing the project, Katua Falls will either designate changes or grant final approval. The construction deposit must accompany the completed Construction Application Deposit and Agreement Form plus one 11”x17” set of drawings.

VIII – CONSTRUCTION GUIDELINES

8.1 START OF CONSTRUCTION: No lot clearing or placement of portable toilets will be permitted until formal written approval of the Architectural Control Committee has been granted.

8.2 SITE CLEAN UP: In addition to the requirements of the Builder, it is the responsibility of the Owner to assure that during construction the home site and lot is maintained in a neat and orderly fashion. Trash from construction work must be contained in a trash dumpster or removed from the job site on a routine basis. The builder is responsible for trash that blows off the site and shall retrieve such trash immediately. Included in this provision is the clean up of concrete delivery trucks. If a concrete delivery truck spills or discharges concrete on land other than the lot on which the delivery was made, then it shall be the responsibility of the Builder to remove the concrete.

8.3 WORKING HOURS: The construction working hours shall be from 7:00 a.m. to 6:00 p.m. Monday through Friday and from 8:00 a.m. to 1:00 p.m. on Saturdays. Written approval must be obtained from the Architectural Control Committee prior to working additional hours. This rule is necessary to protect the peaceful occupancy by other home owners and renters.

8.4 GATE ACCESS: The gate shall be open from 6:30 a.m. to 6:00 p.m. Monday through Friday and from 7:00 a.m. to 1:00 p.m. on Saturday. No construction vehicles are authorized within the community outside of the above hours. In the event a builder wishes to have work performed after these house, the builder must obtain written permission from the Architectural Review Committee.

8.5 NO PETS: No pets, including hunting dogs, shall be allowed within the community unless they belong to an owner.

8.6 NO BURNING: No fires shall be allowed unless contained within a 55 gallon steel drum. Brush, stumps and construction waster must be removed from the community by the builder.

8.7 NO DUMPING: No part of the community or the development shall be used to dump brush, stumps or construction waste. Violations shall be enforced by a fine of $500.00 per day that the brush, stumps or waste remains in violation.

CONSTRUCTION GUIDELINES

8.8 SPEED LIMIT: The maximum speed limit within Katua Falls is 20 miles per hour and shall be strictly observed at all times. It is recognized that traveling the mountain roads of Katua Falls in excess of 20 miles per hour jeopardizes the safety of others and is unacceptable. The Committee reserves the right to restrict the right to use the roads of Katua Falls to any contractor or subcontractor who has violated the Katua Falls speed limit.

8.9 PARKING: No vehicles shall be parked on any streets within Katua Falls and shall not be parked on other home sites.

8.10 NO LOUD MUSIC: Construction crews shall not play excessively loud music at a job site. Excessively loud music shall be defined as a volume at which the music is plainly audible on the deck or porch of any other home within Katua Falls.

8.11 NO ALCOHOL OR ILLEGAL DRUGS: The Architectural Review Committee shall immediately restrict access to Katua Falls to any contractor or subcontractor who has used alcohol or illegal drugs while working on a job site.

8.12 SITE APPEARANCE: Site cleanliness shall at all times be maintained at an acceptable level. If not so maintained, Katua Falls will issue a “stop work” order. As an untidy site presents a negative image to visitors and property owners, this requirement shall be strictly enforced. Should Katua Falls determine, in its sole discretion, that the site is not maintained properly, it may undertake having it maintained properly and will deduct the cost from the construction deposit and/or levy additional fines.

All construction materials must be kept within the property lines, and a clear, street right-of-way should be maintained. Access to the site should be limited to the proposed driveway location. Access over/through adjoining properties is expressly forbidden. The storage of materials should be in an inconspicuous area of the site and should be neat and orderly. The use of adjoining properties for access or storage of materials without the written permission of the adjacent owner is prohibited.

Each construction site is required to have a job toilet at all times for the use of workers. It must be placed at least twenty (20) feet from the street in an inconspicuous location with the door facing away from the street and neighboring homes.

VIV - IMPORTANT STANDARD PROVISIONS

HOMSITE PURCHASE AGREEMENT

9.1 RESTRICTION ON LEASING: Buyer shall be permitted to lease or rent buyer’s property.

9.2 HOUSE DESIGN: Buyer acknowledges that the house built on this lot must be designed to fit the “RUSTIC” nature of the community. It must be a luxury styled home with natural finishes. The plans and finishes must be approved by the Architectural Control Committee. This restriction will be passed on to any future buyer in the event the lot is re-sold prior to construction of a house on the lot.

9.3 TREE REMOVAL RESTRICTIONS: No trees will be removed from any home site without the approval of the Architectural Control Committee. All site work must be done by a contractor approved by the Developer.

9.4 TREE TOPPING: The Architectural Review Committee and any abutting home site owner will have the right to top up to a maximum of three (3) trees on the lot below if it significantly enhances the view. Tree topping will be kept to a minimum. Trees in front of a home may not be topped if the canopy is above a straight-line view and yet help hide the house from a distance. It is the intent that no homes will be visible from the valley or mountain across the valley. All tree topping will be done by developer approved contractors only. (see also 3.1d)