Villages of Westminster HOA Disclosure Package by john womeldorf

VILLAGES OF WESTMINSTER 2012 BUDGET

INCOME Association Semi-Annual Dues RV/Boat Rental Lot Fee Bank Interest Earned Clubhouse Rental Miscellaneous Income Late Fees and Penalties Disclosure Package INCOME TOTAL

2011 Actual 9/29/2011

2011 Projected

2011 Budget

2012 Budget

$ 131,871.42 4,741.66 1,195.23 1,562.50 873.32

$ 139,750.00 4,741.66 1,195.23 1,700.00 925.00

$ 140,244.13

$ 148,311.89

$ 140,970.00 5,950.00 800.00 1,200.00 500.00 $ 149,420.00

$ $

1,750.00 355.20 650.00 9,575.00 5,523.00 550.00 14,700.00 605.35 2,200.00 55.00 2,267.75 75.00 $ 36,556.30

$ $

$ 38,640.00

1,900.00 40.00 600.00 11,000.00 5,900.00 1,100.00 14,700.00 500.00 1,500.00 400.00 1,400.00 325.00 $ 39,365.00

1,855.00 2,025.61 1,592.67 29,528.00 $ 4,659.14 500.00 250.00 11,880.00 $ 52,290.42

1,000.00 2,500.00 3,000.00 30,000.00 $ 6,500.00 2,000.00 600.00 2,500.00 $ 48,100.00

6,800.00 750.00 1,000.00 3,000.00 30,000.00 $ 5,375.00 1,500.00 700.00 2,500.00 $ 51,625.00

$140,970.00 $5,950.00 $418.00 $1,700.00 $0.00 $750.00 $0.00 $149,788.00

EXPENSES Administrative Administrative Charges Bank Charges Bad Debt Expense Electric Bill Insurance Legal Management Fee Professional Fees Social Functions Taxes/Licenses Water/Sewer Web Site TOTAL Grounds BMP Stormwater Maintenance Boat/RV Storage Maintenance Grounds Improvements / Other Grounds Beautification Committee Grounds/Landscaping Contract Lake Maintenance Sprinkler Maintenance Structure Maintenance Tree Removal TOTAL

1,461.85 355.20 376.20 7,094.97 5,523.00 300.00 11,025.00 605.35 1,903.22 2,267.75 48.00 $ 30,960.54

1,694.81 2,025.61 1,592.67 24,831.40 3,505.60 $ 33,650.09

1,800.00 40.00 700.00 12,000.00 4,900.00 1,500.00 14,700.00 500.00 1,000.00 700.00 800.00

$ $

Clubhouse / Pool Clubhouse Accessories Clubhouse Maintenance Electrical Repairs Gas for Clubhouse Keys/Locks Plumbing Maintenance Pool Accessories Pool Maintenance Pool Operation / Contract Telephone Pool/Clubhouse Trash / Dumpster TOTAL

6,801.67 $ 399.73 469.00 1,476.54 13,981.48 24,037.33 206.78 870.00 $ 48,242.53

500.00 7,100.00 $ 150.00 650.00 15.00 625.00 1,474.54 16,141.48 24,037.33 275.00 1,000.00 $ 51,968.35

500.00 2,500.00 $ 500.00 750.00 50.00 650.00 350.00 5,000.00 22,500.00 300.00 500.00 $ 33,600.00

CAPITAL IMPROVEMENTS

EXPENSES TOTAL

$ 112,853.16

RESERVE CONTRIBUTIONS Capital Replacement Reserve Reserve Study Expense Capital Replacement Expense Capital Reserve Transfer TOTAL RESERVE CONTRIBUTIONS GRAND TOTAL EXPENSES

NET INCOME OR LOSS

Approved: BOD

October 6, 2011

$ 140,815.07

2,463.00

300.00 5,500.00 $ 500.00 750.00 32.00 650.00 700.00 5,000.00 25,000.00 300.00 1,000.00 $ 39,732.00 2,950.00

$ 122,803.00

$ 133,672.00

$ 13,921.00 $ 13,921.00 400.00 400.00 12,235.65 12,235.65 (11,535.65) (12,235.65) $ 700.00 $ 14,321.00 $ 14,321.00

$ 15,348.00 400.00 $ 15,748.00

$125,088.81

$167,371.72

$15,155.32

-$19,059.83

$137,124.00

#REF!

$149,420.00

$0.00

ARTICLES OF INCORPO'RATION

THE VILLAGES AT WESTMINSTER HOMEOWNERS ASSOCIATION, PIC.

In compliance with the requirements of Chapter 10 of Title 13.1 of the Code of Virginia of 1950, as amended, the undersigned, who is a resident of the Commonwealth

of Virginia and is of full age, has this day voluntarily formed a corporation not for profit and does hereby certi@:

ARTICLE 1 The name of the Corporation is THE VILLAGES OF WESTMINSTER

HOMEOWNERS ASSOCLATION, NC.,hereafter called the "Association." ARTICLE n The principal office of the Association, which is the initial registered office of the Association is 301 Hiden Boulevard, Suite 200, Newport News, Virginia 23606.

The name of the city in which the initial office is located is Newport: News, Virginia.

ARTICLE III The name of its initial registered agent is Barbara Hays Kamp, who is a resident of Virginia and a member of the Virginia State Bar, and whose business office is the same as the registered office, namely 307 Hiden Boulevard, Suite 200, Newport News, Virginia 23606.

ARTICLE IV PURPOSE AND POWERS OF THE ASSOCIATION

This Association does not contemplate pecuniary gain or profit to the members thereof, and the specific purpose for which it is formed is to provide for maintenance, preservation and architectural control of the residence Lots, Common Area, Open Space, Conservation Areas, Natural Open Space Easements andlor Recreation Areas within &at certain tract of property located in James City County, Virginia, known as The Villages at

W e s e e r , Phase I, Section I, as shown on that certain plat entitled "THE VILLAGES AT WESTMINSTER, PKASE I, SECTION I, BERKELEY DISTRICT, JAMES CITY

COUNTY, VIRGINIA," dated December 12, 1996, Rickmond Engineering, Inc., Engineers and Surveyors, recorded in Plat Book 67 at pages 23 through 26 in the Clerk's Office of the Circuit Court of James City County, Virginia, (the "'Clerk's Office"), to be

developed into approximately 89 lots, and to promote the health, safety and welfare of the residents within the above described property and any additions thereto as may hereafter be brought within the jurisdiction of this Association for this purpose to:

(a)

exercise all of the powers and privileges and to perform all of the

duties and obligations of the Association as set forth in that certain Declaration of Covenants, Conditions and Restrictions, hereinafter called the "Declaration," applicable to the property and recorded or to be recorded in the office of the Clerk of the Circuit

Court for James City County, Virginia;

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(b)

fix, levy, collect and enforce payment by any lawful means, all

charges or assessments pursuant to the terms of the Declaration; to pay all expenses in

connection therewith and all office and other expenses incident to the conduct of the business of the Association, including all licenses, taxes or govemental charges levied

or imposed against the property of the Association; (c)

acquire (by gift, purchase or ohenvise) own, hold, improve, build

upon, operate, maintain,convey, sell, lease, transfer, dedicate for public use or otherwise dispose of real or personal property in connection with the affairs of the Association;

(d)

borrow money and with the assent of more than two-thirds (2/3) of

the members (excluding the Declarant), mortgage, pledge, deed in trust, or hypothecate

any or all of its real or personal property as security for money borrowed or debts incurred; provided that, so long as there is a Class B membership, no Common Area shall be mortgaged, pledged, deeded in trust or hypothecated without the prior approval of the

US Department of Housing & Urban Development and the Secretary of Veterans Affairs (hereinafter referred to as HUD and VA, respectively), as applicable; (e)

dedicate, sell or transfer all or any part of the Common Area to any

public agency, authority or utility for such purposes and subject to such conditions as

may be agreed to by the members, and subject to such laws or ordinances as may restrict same, provided, however, that so long as there is a Class B merubeship, no such

dedication, sale or transfer shall occur without the prior approval of HUD and/or VA, as appIicable;

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(f)

participate in mergers and consolidations with other non-profit

corporations organized for the same purpose or annex additional residential property and Common Area, provided that, so long as there is a Class B membership, no such merger, consolidation or annexation shall occur without the prior approval of JXJD and/or VA, as applicable, and provided further that any such merger, consolidation or annexation (other than annexations provided for in the Declaration which shall be made at the sole discretion of the Declarant) shall have the assent of more than two-thirds (U3) of each

class of members; and (g)

have and to exercise my and all powers, rights and privileges

which a corporation organized under the Non-Profit Corporation Law of the

Commonwealth of Virginia by law may now or h e d e r have or exercise. ARTICLE V

rnMBERSEI-IP Every person or entity who is a record owner of a fee or undivided fee interest in any Lot which is subject to the Declaration, including Lots in additional phases which are annexed by the Declamnt pursuant to the Declaration, and including contract sellers, shall be a member of and have voting rights in the Association. The foregoing is not intended

to include persons or entities who hold an interest merely as security for the performance

of an obligation. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment by the Association.

ARTICLE VI VOTING 'RIGHTS The Association shall have two (2) classes of voting membership:

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Class A. Class A members shdl be d l Owners, with the exception of the

Declamt, and shalj be entitled to one (1) vote for each Lot owned. When more than one

( I ) person holds an interest in any Lot, all such persons shall be members. The vote for such Lot shall be exercised as they determine, but in no event shall more than one (1) vote be cast wirh respect to any Lot.

Class 3.

The Class B members shall be the Declarant as defined in the

Declaration and shall be entitled to two (2) votes for each Lot owned now or in any section whicb may be hereafter annexed.

Class B membership shall cease and be

converted to Class A membership and, thereafter, all members shall be entided to one (1) vote for each Lot owned upon the earliest of the following:

(a)

Seventy-five percent (75%) of the Lots are deeded by the Declarant

to Owners other than the Declarant. )

Five ( 5 ) years fiom the date of the most recently recorded

annexation document.

BOARD OF DIRBCTORS The affairs of this Association shall be managed by a Board of three (3) directors who need not be members of the Association. The number of directors may be changed

by amendment of the Bylaws of the Association. The names and addresses of the persons who are to act in the capacity of the Directors until the selection of their successors are: WilIard W- Morris 2 Eaton Street, Suite 1101 Hampton, Virginia 23669

Kenneth L. Allen 2 Eaton Street, Suite 1101 Hampton, Virginia 23669

Joseph P. Byrne 2 Eaton Street, Suite 1 101 Hampton, Virginia 23669 At the first annual meeting, the members shall elect one (1) director for a term of

three (3) years; one (1) director for a term of two (2) years; and one (1) director for a term

of one (1) year; and at each annual meeting thereafter, the members shall elect directors to serve in place of directors whose terrns expire, each such director to serve for a term of

three (3) years. ARTICLE V W DISSOLUTION The Association may be dissolved by the members, but only upon compliance

with dl of the provisions of Section 13.1-902, g.s-, of the Code of Virginia of 1950, as amended, or any amendment thereto, ad,so long as dxre is a Class B membership, only

with the prior approval of HUD andlor VA., as applicable. Upon dissolution of the Association, other than incident to a merger or consolidation, tbe assets of the Association shall be dedicated to an appropriate public agency to be used for purposes

similar to those for which this Association was created In the event that such dedication is refused acceptance, such assets shalI be granted, conveyed and assigned to any nonprofit corporation, association, trust or other organization to be devoted to such similar purposes.

ART1CLE IX

DURATION The Association shall exist perpetually. ARTICLE X AMENDMENTS Amendment of these Articles shall require the approvaI by not less than seventy-

five percent (75%) of the Lot owners and fifty-one percent (51%) of first mortgagees, such vote to include at least a majority of the votes of all Members present, in person or by proxy, and voting at any meeting of the Association properly called for the purpose of acting on such amendment, and, so long as there is a Class B membership, the prior approval of IUD and/or VA, as applicable.

IN WITNESS WHEREOF, for the purpose of forming this Association under the laws of the Commonwealth of Virginia, I, the undersigned, constituting the incorporator of this Association, has executed these Articles of Incorporation this 12th of February, 1998.

Barbara Hays K m p

AMENDED AND RESTATED BYLAWS SEPTEMBER 2,2003

FOR -

THE VILLAGES AT WESTMINSTER IIOMEOWNEKS' ASSOCIATION, INC.

NAME AND LOCATION. The name of the Corporation is 'FEE

VILLAGES AT WSTNINSTER HOMEOWNERS ASSOCIATION, WC., hereinafter referred to as the .Associalion.. The principal oflice of the corporation shall be located at

2 Eaton Street, Hampton, Virginia 23669, but meetings of members and directors may be held at such piaces w i t h the State of Virginia, reasonably convenient as m y be designated by the Board of Directors.

ARTICLE LI

DEFINITIONS -Section 1. Association. shall mean and refer to 'I'm VILLAGES AT

WESTMINS'lyERIIOMEOWNERS ASSOCIATION, NC., its successors and assigns. Section 2. Properties. shall mean and rerer to that certain real properly

described in the Declaration of Covenants, Conditions and Restrictions, and such additions thereto as may hereafter be brought w i t h i the jurisdiction of the Association. Section 3. Common Area. shall mean all real property owned by the

Association for the common u% and enjoyment of the Owners. Section 4. Lot shall mean and refer to any plot of Iand shown upon my recorded subdivision map oi'the Properties with the exception of the Common Area.

Section 5. Owner. shall mean and refer to the record owner, whelher

one or more persons or entities, of the fee simple title to any Lot which is a part of the

Properties, il~ctudingcontract sellers, but excluding those having such interest merely as security for the obligation, Section 6. Declarant. shall mean and refer to Warhill Associates,

L.L.C., a Virginia liinited liability company, its successors or assigns if such successors or assigns should acquire more than one undeveloped Lot from lfle Declarant for the purpose of development. Section 7. Declaration. shall mean ant1 refer to the Declaration of

Covenants, Conditions and Restrictions applicable to the Properties recorded in the Office of the Clerk for the Circuit C o w for James City County, Virginia. Section 8. Member. shall mean and refer to those persons entitled to

membership as provided in the Declaration.

MEETING OF Ml?MBERS Section 1 . Annual Meetings, The first annual meeting of the members shall be

held within one year fiom the date of incorporation of the Association, and each subsequent regular m u a l meeting of the members shall be held in Decembcr each year thereafter, at 7:00p.m., on a date set by the Board of Directors. Section 2. Spcciai Meetings. Special meetings of the mcmbers may be

called at any time by the president or by any two members of the Board of Directors, or upon written request of the members who are entitled to vote one-quarter (114) of the all the votes of the Class A Membership. Section 3. Notice of Meetings. To the extent not inconsistent with the Virginia

Nonstock Corporation Act, written notice of annual or regular meetings of the members shall be given by, or at the direction of ale secretary or person authorized to call the nleeling, by mailing a copy of such notice, postage prepaid, at least [ourteen (14) days b~rtno more than forty-five

(45) days before such meeting, and at least seven (7) days but no more than thirty (30) days with

respect to a special meeting of the members, to each member entitled to vote thereat, addressed to the member's address last appearing on the books of the Association for the purpose of notice. Such notice shall specify the place, day and hour of the meeting, and, in the case of a special meeting the purpose of the rneethg.

Section 4. Qt~onlm.The prwnce at the meeting of mcmbers entitled to

cut, or of proxies entitled to cat, twenty percent (20%) of the votes of each class of

membership shall constitute a quorum for my action except as otherwise provided in the Article of Incorporation, the Declaration, or these By-Laws. IS however, such quorum shall not bc present or represented at any meeting, the members entitled to vote thcreat

shall have power to adjourn the meeting fiom time to tine, without notice other t h announcement at the meeting, until a quorum as aforesaid shall be present or be represented. Section 5. Proxies. At d l meetings of members, each member may vote

in person or by proxy. A11 proxies shall be in writing and filed with the secretary. Every

proxy shall be revocabIe and shall automatically cease upon conveyance by the member

of his Lot.

ARTICLE TV

BOARD OF DIECTORS: SELECTION: TERM OF OFFICE Section 1. Number. The affairs of lhis Association shall be managed by a Board

of five (5) Directors. Four (4) of the five (5) Directors shall serve in a capacity representing either Kensington Village, Cambridge Village, Somerset ViIlage or Odord Village, wiih each one of the said four Directors representing a separate Village. The fiflh Director shall serve in an at-hge capacity.

Section 2. Term of Office, At the first arlnual meeting, the members shail elect

one director for a term of three years, one director for a term of two years and one director for a

term of one year. At the second annual meeting, the members shall elect three directors. The director receiving the highest number of votes shall serve a three-year term; the director receiving the second highest number of votes shall serve a two-year term; and the director

receiving the third highest number of votes shall serve a one-year term. At each annual meeting thereafter, the members shall elect directors Tor a tern of three years. Section 3. Removal. Any director may be removcd ftom the Board, wiih

or witl~outcause, by a majority vote of the members of the Association. In the event of death, resignation or removal o f a director, his sucmssor shall bc selected by the

remaining inembers of the Board and shall serve for the unexpired term of his predecessor. Section 4. Compensation. No director shall receive compensation for any service he may render to the Association. However, any director may be reimbursed for

his actual expenses incurred in the performance of his duties. Section 5. Action Takcn without a Meeting. The directors shall have the

right lo take any action in the absence of a meeting which they could take at a meeting by

obtaining the written approval of all the directors. Any action so approved shall have the same effect as though taken at the meeting of directors.

ARTICLE V NOMINATION ANf)ELECTION OF DIRECTORS Section 1. Nomination. Nomination for election to the Board of Directors shall be made by a Nominating Committee. Nominations may also be made fiom the floor at the

annual meetiug. The Nominating Cornnittee shall consis? of a Chairman, who shall be a member

of the Board of Directors, and two or more members ofthe Association. The Nominating Committee shall be appointed by the Board of Ilirectors prior to each annual meeting of the

members. to serve from the close of such annual meeting until the close of the next mual

meeting and such appointment shall be announced at each annual meeting. 'The Nomiaat ing Committee shall make as many nominations for election to the Board of Directors as it shall in its discretion determine, provided that such nominations are consistent wit11 Article IV, Section 1, of these Bylaws, but not less than the number of vacancies that are to be fdled. Section 2. Election. Election to the Board of Directors shall be by secret written

ballot. At such election the members or their proxies may cast, in respect to each vacancy, as many votes as they are entitled to exercise under the provisio~lsof the Declamlion. Ehch member

m y vote lor each Director position which is scheduled to be filled at the election. The persons receiving the largest number of votes sl~allbe elected, Cumulative voting is not permitted.

MEETINGS OF DIRECTORS Section 1. Regular Meetings, Regular meetings of the Board of Directors

shall be held as determined by the Board of Directors, at such place and hour as m y be fured from time to time by resolution of the Board. Should said meeting fall upon a legal holiday, then that meeting shall be held at t l ~ esame time on the next day which is not a legai holiday.

Section 2. Special Mectinys. Special meetings of the Board of Directors

shall be held when called by the president of the Association, or by any two d~ectors, after not less than one (1) day notice to each director. Section 3. Quorum. A majority of the number of directors shal constitute

a quorum for the transaction of business. Every act or decision done or made by a maNrity of the directors present d a duly held meeting at which a q u o m is present s21all

be regarded as the act of the Boafd.

ARTICLE VII POWERS AND DUTIES OF THE B0JR.D

OF DIRECTORS

Section 1. Powcrs. The Board of Directors shall have power lo: (a) adopt and publish rules and regulations governing the use of the

Common Area aid facilities, and the persona] conduct of the members and their guests thereon, and to establish penalties for the infraction hereof ('b) suspend the voting ~ g h t and s right to use of the Common Area of

a member during any period in which such member slull be in default in the payment of

any assessment levied by the Association. Such rights may also be suspended after notice and haring, for a period not to exceed 60 days for ll~hactionof published rules and

regulations; (c) exercise for the Association all powers, duties and authority vested in or deIegated to this Association and not reserved to the membership by other provisions of these By-Laws, the Articles of Incorporation, or the Declaration; (d) declare the office of a member of the Board of Directors to be

vacant in the cvent such member shall be absent from thee (3) consecutive regular meetings of the Board of Directors; and

(e) enlploy a person. independent contractor, or such other employees as they deem necessary, and to prescribe their duties.

Section 2. Duties. It shall be the duty of the Board of Directors to:

(a) cause to be kept a complete record of all its acts and corporate affairs and to present a statement thereof to the members at the annual meeting of the members, or at any special meeting when such statement is requested in writing by one fourth (1/4) of the C h s A members who are entitled to vote; (b) supervise all officers, agents and empIoyees of this Association, and to see that their duties are properly performed;

(1) fx the amount of the m u a l assessment against each I,ot at least thirty (30) days in advance of each annual assessment period;

(2) send written notice subject thereto at least thirty (30) days

period; and (3) foreclose the lien against any property fbr which assessments are not paid within (30) days after due date or to bring an action at law against the owner persorlaliy obligated to pay the same. (d) issue, or to cause an appropriate officer to issue, upon demand by any

person, a cerlzcate setting hrth whether or not any assessment has been paid. A reasonable charge may be made by the Board for the issuance of these certificates. If a certificate states an assesnient has been paid, such certificate shall be conclusive evidence of such payment;

(e) procure and maintain adequate liability and hazard insurance on propcrty owned by the Association;

(f) cause all officers or employees having fiscal responsibilities to be

bonded, as it may deem appropriate; (g) cause he Co~nmonArea to be maintained;

(h) elect the officcrs and appoint committees as hereinafter provided. Q to act tor the Association on any matter which does not

specifically require action by the members. Cj) to take such other actions as are necessary to fulfill the purposes of

the Associaiion.

ARTICLE VllI

OFFICERS AND THEIR DUTIES Section 1. Enumeration of Offices. The ol'licers of this Association shall

be a president, who shall at all times be a member of the Board of Directors, a vice

president, a secretary, and a treasurer, and such other officers as the Bomd may fiom time

to time by resolution create. Section 2. Election of OEcers. The election of oficers shall take place at

the frrst meeting of the Board of Directors after the annual meeting of the members. Section 3. The officers of this Association shall be eIected amally by

the Board and each shall hold office for one (1) year unless he shall sooner resign, or

shall be removed, or otl~erwisedisqualified to scwc. Section 4. Special Appointments. The Board may elect such other

oEcers as the affairs of the Association may require, each of whom shall hold office for such period, lmve such authority, and perform such duties as the Board may. from time to time determine. Section 5. Resignation and Removal. Any officer may be renmved fiom

office, with or without cause, by the Board. Any oflicer m y resign at my time by giving written notice to the Board, the president or the secretary. Such resignation shall take

effect immediately or at any latcr timc specified therein, and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to m d e if effective. Section 6. Vacancies. A vacancy in any office may be filled by

appointment by the Board. The officer appointed to such vacancy shall serve for the remainder of thc term of the officer he replaces. Section 7. Multiple OftSces. The offices of secretary and treasurer may be

held by the same person. No person shall simullaneously hold more than one of any of the other offices except in the case of special offices created pursuant to Section 4 of this Article. Section 8. Duties. The duties of the oÂŁticers are as follows:

President (a) The president shall preside at all meetings of the Board of Directors;

shall see that orders and resoIutions of the Board are carried out; shall sign all leases, mortgages, deeds and other written iustruments and s M co-sign all checks and promissory notes. Vice-President @) 711e vice president shall act in the place and stead of the president in the

event of his absence, inability or refhal to act, and shall exercise and discharge such

other duties as may be required of him by the Board.

Secretary (c) 'The secretary shall record the votes and keep the minutes of all meetings

and proceedings of the Board and of the members; keep the corporate seal of the Association and a f f i it on all papers requiring said seal; serve notice of meetings of the Board and of the members; keep appropriate current records showing the members of the Association i~getherwilh their addresses, and shall perform such other duties as required by the Board.

Treasurer (d) the treasurer slmll receive and deposit in appropriate bank accounts a11

monies of the Association and slmll disburse such funds as directed by resolution of the Board of Directors; shall sign all checks and promissory notes of the Association; kecp proper books of account; cause an annual audit of the Association books to be made by a public accountant at the completion of each fiscal year; and shall prepare an annu1 budget and a statement of income and expenditures to be presented to the membership at

its regular meeting, and deliver a copy of each io the members. ARTICLE IX

The Association and/or the Board of Directors shall appoint committees

as are deenled appropriate in carrying out its purposes.

ARTICLE X --BOOKS AND RECORDS The Association shall keep records of (a) its governing documents (i-e., A5sociation documents, rules and regubtiom and

design standards);

(b) its actions (Board Resolutions, meeting minutes, etc.); and (c) its financial condition (receipts and expenditures aCfeclirlg the finances,

operation and records for the preceding four (4) years, unless otherwise required under applicable law). The aforesaid books and records, except for privileged or c ~ ~ d e n t i a l information, shall at all times upon reasonable notice to the Association, during reasotlable business hours, be subject to inspection by any member, or such member s authorized agent, at the principal office of the Association, where copies may be purchased at a reasonable cost.

ARTJCLE XI

As more fully provided in the Jleclaration, each member is obligated to pay to the Association annual and special assessments which are secured by a continuing

lien upon the property against which the assessment is made. Any assessments which are

not paid when due shall be delinquent. If the assessment is not paid within thirty (30) days afier the clue date, the assessment shall bear interest from the date of delinquency at the rate of prime rate plus four (4) points per annum, where the prime rate shall mean and refer to the interest rate established and offered under that name fiom time to time by

NalionsBank, N.A., or its successor bark and the Association may bring an action at law against the Owner personally obligated to pay the same or foreclose the lien against ;the

property, and interest, costs, and reasonable attormy s fees of any such action shall be added to the amount of such assessment. No Owner may waiver or otherwise escape liability for the assessments provided for herein by non-use of the Common Area or nonuse or abandonment of his Lot.

ARTICLE XI1 CORPORATE SEAL The Association shall have a seal in circular fom having within its

circumt'erence the wo~*ds; Tm VILLAGES AT WESTMINSTER HOMEOWNERS ASSOCIATION, INC. A UTICI,F: WIT

AMENDMENTS Section 1. These By-Laws may be amended at a regular or special

meeting of the members, by vote of a majority ofa quorum of menibers present in person or by proxy provided, however, while there is a Class B membership, HUD andforVA, as applicable, shall have the right to veto any such amendment.

Section 2. In the case of any conflict between the Articles of

Incorporation and tliese By-Laws, the Articles shall control; and in the case of any conflict between the Declaration and these By-Laws, the Declaration shall control.

ARTICLE XTV

MISCELLANEOUS The fiscal year ofthe Association shall begin on the first day of January

and end on the 3 1 st day of December of every year, except that the h c a l year shall begin on the date of incorporation.

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF TIXE VILLAGES AT WESTmSTER, SECTION 1A

THIS DECLARATION, made this 22nd day of August, 1997, by WARHILL ASSOCIATES, L.L.C.,

a Virginia limited Iiability company (hereinafter referred to as

"DecIarant"), index as "Grantor."

RECITALS There has been duly approved under the ordinances of James City County, Virginia, a

subdivision known as The Villages at Westminster, Phase I, Section I as shown on the subdivision plat entitled "The Villages at Westminster, Phase I, Section I, Berkeley District,

James City County, Virginia," dated December 12,1996, and recorded in Plat Book 67, pages 23

through 26 in the Clerk's Office of the Circuit Court for the City of WilIiamsburg and County of James City, Virginia, all of said property as shown on the subdivision and re-subdivision plats being hereinafter collectively referred to as "Subdivision." The purpose of this Declaration is to improve and protect the Subdivision.

NOW, TI-IEREFORE, Dcclarant, as owner of all the property in the Subdivision, hereby declares that all of the property as shown on Exhibit A, which is attached hereto and made a part hereof, shall be held, sold and conveyed subject to the following easements, restrictions,

covenants and conditions, which are for the purpose of protecting the value and desirability of, and which shall run with, the real property and be binding on all parties having any right, title or

interest in the described properties or any part thereof, their heirs, successors and assigns, and

shall inure to the benefit of each owner thereof.

ARTICLE 1 DEFINITIONS Section 1.

"ArchitecturaI Review Committee" shall mean and refer to the committee

of that name, which shall be formed and operated by the Association for the purpose of reviewing, evaluating, negotiating changes or revisions, establishing architectural standards, and approving or rejecting plans for architectural changes to the Lots or improvements thereto. Section 2.

"Association" shall mean and refer to The Villages at Westminster

Homeowners Association, Inc., a Virginia non-stock corporation, its successors and assigns. Section 3.

"Board of Directors" shall mean and refer collectively to the Board of

Directors of the Association as it may change from time to time. Section 4.

"Builder" shall mean and refer to Atlantic Homes Corporation or builders

who are successors or assigns within the meaning of "Declarant" Section 5.

"Common Area" shall mean and refer to the area identified as "Open

Spacey', "Conservation Areas," 'Watursh Open Space Easements" andlor "Recreation Areas" on the Subdivision Plat, together with such additional areas of Common Area as may be annexed

2 I

hereto pursuant to the annexation provisions set forth hereinafier and, for maintenance purposes only, areas within public rights-of-way along Wellesley Boulevard and elsewhere within the Properties where lots do not front upon public rights-of-way. Section 6.

"Declarant" shall mean and refer collectively to Warhill Associates,

L.L.C., a Virginia limited liability company, its successor and assigns, if such successor or assigns should acquire more than one (1) undeveloped Lot from the Declarant for the purpose of development and/or construction. Section 7. "HUD" shall mean the U. S. Department of Housing & Urban Development.

57 C3

Section 8. "VA" shall mean the Secretary of Veterans Affairs. Section 9.

"Lot" shall mean and refer to the eighty-nine (89) numbered iots intended

for the purpose of constructing residential homes thereon, as shown on the Subdivision as Lots 1 through 89; "Lot" as used herein is intended to refer to residential lots and not to any Common Area. Section 10.

"Membership" shall mean and refer collectively to the Class A and Class

B members of the Association eIigible to vote. Section 1 I .

"Mortgage" as used herein shall mean a mortgage or deed of trust, said

terms having the s m e meaning and may be used interchangeably. Section 12.

"Owner" shall mean and refer to the record owner, whether one (1) or

more persons or entities, of a fee simple title to any Lot which is a part of the Subdivision, including contract sellers, but excluding those having such interest merely as security for the perfomance of any obligation. Section 13.

"Properties" shall mean and refer to all of the land within the Subdivision

as shown on the plat of The Villages at Westminster, Phase I, Section I, and all other property which may be annexed hereto pursuant to the Annexation provisions set forth hereinafter.

ARTICLE IT PROPERTY RIGHTS AS TO COMMON AFEAS AS TO COMMON AREA, the following provisions apply: Section I. Owners' Easements of Eniovment.

Every Owner shall have a right and

easement of enjoyment in and to the benefits which derive f-rorn the conservation area located in the C o m o n Area and the benefits derived therehorn and the adjacent or other property which is

now or subsequently becomes a part of the Common Area, and aesthetic beauty to the Lots within the Subdivision which shall be appurtenant to and shall pass with the title to every Lot, subject to the following provisions: (a) the right of the Association to charge reasonable fees for the maintenance of

the Common Area. (b) the right of the Association to suspend the voting rights of an Owner for any

period during which any assessment against his Lot remains unpaid.

Common Area to any public agency, authority or utility for such purposes and subject to such conditions as may be agreed to or be authorized by the Board of Directors of the Association; in

addition thereto, the Declarant may at anytime deed, or cause the Association to deed, all of any part of the Common Area to the County of James City or other public body, who shall thereafter

maintain the Common Area; provided, however, that any dedication of all or my part of the Common Area requires the prior approval of HUD andlor VA, as applicable, so long as there is a

Class B membership; (d) the transfer of a Lot automatically transfers membership in the Association

and all rights of the h-ansferor with respect to the Common Area and facilities to which ownership of such Lot relates; (e) the right of the Association to establish reasonable rules and regulations, from

time to time, for the use and enjoyment of the Common Area and Properties, and enforce such

rules and regulations against the Owners, their family members, guests and invitees.

(f) the right of the Association to allow persons other than Owners, their family members, guests and invitees, to use the Swimming Pool facilities which have been or will be constructed on the Properties and gain access to same by establishing an outside pool membership for a fee to be established, from time to time, by the Association. Section 2. Delegation of Use. A n y Owner may delegate, in accordance with the By-laws, his right of enjoyment to the Common Area facilities to the members of his family, his tenants or contract purchasers who reside on the Property.

ARTICLE III MEMBERSHIP AND VOTING RIGHTS AS TO THE ASSOCIATION, the following membership and voting rights shall apply:

Section 1. Every Owner of a Lot shall be subject to assessment in the manner herein set forth and shall be a member of the Association with each such Lot Owner having an equal voting right with every other Owner except Class B members. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment.

Section 2. The Association shall have two (2) cIasses of voting membership: 4

(a) Class A. Class A members shall be all Owners of Lots with the exception of

97 C3

the Declarant, and shall be entitled to one (1) vote for each Lot owned. When more than one (1)

person holds an interest in any Lot, all such persons shall be members. The vote for such Lot shall be exercised as they determine, but in no event shall more than one (1) vote be cast with respect to any Lot. (b) Class B. The Class B member shall be the Declarant, who shall be entitled to

two (2) votes for each Lot owned. Declarant shall turn over control of the Association to

Owners, Class B Membership shall cease and be converted to Class A Membership, and

0 0

thereafter, all members shall be entitled to one (1) vote for each Lot owned upon the earliest of the following:

(i)

Seventy-five percent (75%) of the Lots are deeded by the Declarant

to Owners; or (ii)

Five (5) years from the date of the most recently recorded

annexation document.

ARTICLE IV

COVENANT FOR MAINTENANCE ASSESSMENT AS GENERAL ASSESSMENTS FOR ALL LOTS: Section 1. Creation of the Lien and Personai Obligation of General Assessments. The

Declarant, for each Lot owned within the Properties, hereby covenants and each Owner of any Lot by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, is

deemed to covenant and agree to pay t o the Association as general assessments the following: (a) general annual assessments or charges ("General Assessment"); and

C> ---I

)

general

special

assessments

for

capital

improvements

("Special

Assessments"), such assessments to be established and collected as hereinafter provided. The Q

general annual and general special assessments, together with interest, costs and reasonable

attorney's fees, shall be a charge on the land and shall be a continuing lien upon the property against which each such assessment is made in accordance with the Virginia Property Owner's Association Acr, being Sections 55-508, g seq.,of the Code of Virginia, 1950, as amended (the "Act"). h c h such assessment, together with interest, costs and reasonable attorney's fees, shall

'O c . .

also be the personal obligation of the person who was the Owner of such property at the time when the assessment fell due. The personal obligation for delinquent assessments shall not pass to his successors in title unless expressly assumed by them. Section 2. Purpose of General Assessments. The Assessments levied by the Association shalI be used exclusively for the improvement and maintenance of the Common k e a and

including, ior purposes of this Covenant, areas within the public rights-of-way along Wellesley Boulevard and elsewhere within the Properties where lots do not front upon public rights-of-way, including, for purposes of this Covenant, all common areas from any phase which may be annexed hereto, pursuant to the annexation provisions set forth hereinafter, owned by the

Association (the "Total Common Area7'),and to provide for such adequate reserve hnds for the repair and replacement of improvements in the Total Common Area, as the Board of Directors

may deem appropriate from time to time. Section 3. Maximum General Assessment. Until January 1 of the year immediately following the conveyance of the first Lot to an Owner, the m a x i m General Assessment shall not exceed THREE HUNDRED AND N0/100DOLLARS ($300.00)per year per Lot. (a) From and afier January 1 of the year immediately following the conveyance

of the first Lot to an Owner, the maximum Genera1 Assessment may be increased each year not more than ten percent (10%) above the maximum assessment for the previous year without a vote of the Membership.

(b) From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum Genera! Assessment may be increased above ten

percent (I 0%) by a majority vote of members who are voting in person or by proxy, at a meeting duly called for this purpose. (c) The Board of Directors may fix the general annual assessment at an amount not in excess of the maximum without further vote or authorization by the Membership. Section 4. Working Capital Fund. The Declarant, as agent of the Association, may establish for the Association a Working Capital Fund by collecaing frorn each Owner of an improved Lot up to six (6) months of the annual General Assessment for each improved Lot at the time the improved Lot is purchased to serve as reserve h n d for capital expenditures,

replacements or general operating expenses. The Declarant shall not use the Working Capital

Fund to pay any construction costs, but shall only use the Working Capital Fund for capital expenditures, replacements and general operating expenses of the Association. The Declarant shall maintain this as a segregated fund separate and apart frorn other funds of the Association. Section 5. S~ecialAssessment for Capital Improvemenrs. In addition to the General Assessments authorized above, the Association may levy, in any assessment year, a Special

Assessment applicable to that year only for the purpose of defraying, in whole or in pal?., the cost

of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Area, including fixtures and personal property related thereto, provided that any such assessment shall have the assent of a majority of members who are voting in person or by proxy at a meeting duly called for this purpose.

Section 6. Notice and Ouorum for any Action Authorized under Sections 3 and 4. R1ritten notice of any meeting called for the purpose of taking any action authorized under

Section 3 or 4 shall be sent to all members not less than five (5) days nor more than thirty (30)

days in advance of the meeting. At the first such meeting called, the presence of members or of proxies entitled to cast thirty percent (30%) of a11 the votes of membership shall constitute a quorum. If the required quonun is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be one-half (112) of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting. Section 7. Uniform Rate of Assessment.

Both General Assessments and Special

Assessments must be fixed at a uniform rate for all Lots and may be collected on a monthly

basis. Section 8. Date of Commencement of General Assessments: Due Dates. The General Assessments provided for herein shall commence as to any Lot on which improvements have

been completed on the first day of the month foIlowing the completion of the improvements and

after the conveyance of the first Lot by the DecIarant to any Owner other than the Declarant. The 0

Declarant shall not be required to pay the General Assessment on Lots on which improvements

I J

are not completed and sold to an Owner, provided the Declarant shall be responsible for the

97 0

maintenance and upkeep of such unimproved Lots. The first General Assessment shall be adjusted according to the number of months remaining in the calendar year. The Board of Directors shall fix the amount of the General Assessment against each Lot at least thirty (30) days in advance of each General Assessment period. Written notice of the General Assessment

shall be sent to every Owner subject thereto. The due dates shall be established by the Board of Directors. The Association shall, upon demand and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot

0 Y C

have been paid. A properly executed certificate of the Association as to the status of assessment on a Lot is binding upon the Association as of the date of its issuance. Section 9. Effect of Nonvavment of General Assessments: Remedies of the Association. Any General Assessment not paid within thirty (30) days after the due date shall bear interest

from the due date at the rate of prime rate plus four (4) points per annum, where the prime rate shall mean and refer to the interest rate established and offered under that name from time to time

by NationsB&

N.A., or its successor bank. The Association may record a memorandum of

lien, bring an action at law against the Owner personally obligated to pay the same, foreclose the lien against the Property, or pursue any other remedy available at law or in equity. No Owner may waive or otherwise escape liability for the General Assessments provided for herein by

non-use of the Common Area or non-use or abandonment of his Lot. Section 10. Subordination of the Lien to Mortna~es. The lien of the assessments provided for herein shall be subordinate to the lien of any first mortgage. Sale or transfer of any 0

Lot shall not affect the assessment lien. However, the sale or transfer of any Lot pursuant to

C3 4 I 4

mortgage foreciosnre or any proceeding in, lieu thereof shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer. No sale or transfer shall relieve such Lot from liability for any assessments thereafter becoming due w from the lien

thereof. Such subordination shall not release the Owner from personal liability for such assessment.

ARTICLE V PROPERTY RESTRICTIONS

Section 1. Land Use and Buildine Type. No Lot shall be used except for residential purposes; provided, however, this shali in no way restrict the Common Area Lots being used for their intended purposes. No additional, adjacent or connected buildings to house additional persons for rent or other purposes will be permitted. Section 2. No businesses shall be conducted from these residences or on these Lots wherein any evidence of said businesses is visible from without the residence. This includes

signs, marked vehicles, equipment and materials. Neither may any home business generate a stream of trafflc to constitute a nuisance to the neighbors. As long as Declarant owns any Lot, Declarant may maintain a rnodel andlor sales miler on the Properties. Section 3. No Lots may be subdivided by any person other than the Declarant, except Lot line adjustments may be permitted, provided the total number of LOIS is not increased. Notwithstanding the foregoing, the Declarant shall have the right to subdivide Lots and/or make

Lot line adjustments which increase the total number of Lots, subject only to municipal approval. Section 4. No animals, Iivestock or poultry of any kind may be kept on any Lot except dogs, cats or other household pets, provided that they are not kept, bred or maintained for any

commercial purpose. Animals must be properly managed so as not to be a nuisance to neighbors by barking, trespass or maintenance of their bodily hnctions. Section 5. No Lot shall be used or maintained as a dumping ground for rubbish or other material prior to construction. During construction the area will be kept in a reasonably neat and

clean condition, although some debris must be expected. After occupancy the property shall be

kept in a good state of maintenance by the owner. Trash, garbage and other waste shall not be kept in or on the Properties, except in sanitary containers which shall be enclosed in a screening structure, including but not limited to a lattice structure, or located on the lot such that it can not be viewed fiom the street(s) in the Subdivision. Incinerators will not be permitted and all trash

and refuse must be picked up and hauled away, except as otherwise allowed by local ordinance. Section 6.

No construction or improvements shaIl be permitted within any area

designated under the heading "Open Space," "Conservation Area" or "Easement" as reflected on plat of this subdivision unless approved by Declarant and/or James City County. Section 7. A11 Owners, except Builder or builders who are successors or assigns within the meaning of "Declarant," shall submit to the Declarant for its review and approval, architectural elevation and floor plans for all dwelling units to be constructed on the hts, in accordance with the following procedures: (a)

Within fifteen (15) days a&er Declarant shall have received proposed

elevations and floor plans far one (1) or more units to be constructed on the Lots, Declarant shall 0

give Owner notice or its approval or disapproval thereof, specifying, in the case of the latter, its

-4 4

reason therefor. Declarant's right to disapprove such plans and specifications shall be exercised in conformance with the following criteria: (1) Subsection (a) of this paragraph; (2) architectural

57 0 Q

0 4

compatibility with units constructed in adjoining sections and (3) adverse impact on marketability of Lots within the Properties.

(b) An Owner, upon receipt of a notice of disapproval given pursuant to the above, may promptly undertake to amend and modify the proposed design so as to meet the

reasons for Declarant's disapproval specified in the notice of disapproval and, upon completion

thereof, the same shall be approved or disapproved in writing by Declarant within fifteen (15)

days after receipt of same, provided that each submission by Owner shall constitute a new proposal. If there shall be a bona fide dispute between the parties as to whether Declarant's disapproval of any design submitted to it is permitted hereunder, the parties shall enter into discussions of points of disagreement and use their best efforts to resolve such issues to their

mutual satisfaction. (c) If Declarant fails to give notice of its approval or disapproval within fifteen

(15) days after receipt of any architectural elevations or other supporting documentation submitted to it for its approval, or of any required modification or amendment thereof, the same shall be deemed to have becn approved by Declarant.

Section 8. All dwellings shall be sewed by underground utility service, including sewer,

gas, electric, telephone and cable television. No above ground utilities will be permitted. Section 9.

The following additional restrictions wiIl be observed in the intent of

preserving the architectural integrity of the Properties: (a) No external antennas of any description, except satellite dishes of less than

two feet (2') in diameter, which are located entirely below all roof lines of the house on the Lot and is not visible from the street(s) of the Subdivision.

(b) No window air conditjoncrs. (c) No clothes lines, unless said Iines are small and well-screened and approved

by the Architectural Review Committee in advance of their construction, installation or creation. (d) No fencing shall be allowed nearer to the street than the front of the residence,

and no fencing, which is otherwise permitted, shall be erected prior to obtaining the approval of

the Architectural Review Committee, however, Builder does not need approval from the Architectural Review Committee, nor must Builder comply with the locational requirements of this Section 9(d). (e) No solar or energy panels may be visible from the street or to any other residence. (f) No car pons shall be erected on any Lot or attached to any residence.

(g) No temporary structure, trailer, tent, shack, shed or other outbuilding shall be built or used on any Lot as a residence or for storage. Q No chain link fence is permitted, except around dog runs, which are limited to

one hundred twenty (120) square feet of area, and must be located on the Lot so as not to be seen

from the streets of the Subdivision. (i) No sign of any kind shall be displayed to the public view on any Lot except one (1) sign of not more than five (5) square feet advertising the property for sale or rent, or any sign used by the builder to advertise or market the Properties. )

All driveways shall extend to the street and shall be either aggregate or

concrete so as to blend with the streets.

(k) Outbuildings and fencing may be constructed or installed only with the permission of the Architectural Review Committee. (1) A11 replacement mailboxes or mailbox stands shall be of the design provided

by Declarant or as otherwise approved by the Architectural Review Committee. Section 10. Vehicles. Since the unregulated use of vehicles can destroy the appearance of

a neighborhood, the following restrictions will apply:

(a) No more than three (3) ungaraged vehicles will be permitted to be consistently parked on the premises, and such vehicles must be in the driveway or on a parking apron off the driveway. These vehicles will be restricted to licensed, operable automobiles, mini-vans and pickup trucks not to exceed three-quarters (3/4) ton in capacity. (b) No major vehicle maintenance or overhaul of ungaraged veflicles will be

permitted. (c) No inoperable or unlicensed vehicle may remain on the Properties for more

than two (2) days, unless garaged. (d) All vehicles on the Properties must have all major body panels and doors

(except tailgates on trucks) properly installed and closed.

(e) No recreational vehicles, boats, jet skis, trailers, campers, mobile homes or equipment, except passenger automobiles and passenger trucks, may be parked on the streets or on any Lot within the front property set back line. Section I I . Easements.

Easements for instaIlation and maintenance of utilities and

drainage facilities are reserved as shown on the recorded plat of subdivision. The drainage and utility easements may also be used by the Declarant for ingress and egress to or to benefit the Co~nmonArea andlor the Lots as provided for herein. Easements shown on the plan of other deeds of record for streets, drainage, utilities, screening, open space or conservation areas are for the benefit of the residents of The Villages at Westminster Subdivision and may be changed by the Declarmt or the County of James City, Virginia. The D e c l m t reserves the right to require additional easements not to exceed five (5) feet in width along any property line or m y Lot if

drainage problems develop at a later date and require such easements as may be necessary in the

Declarant's opinion. Section 12. Leasing Any Owner may lease or rent his h t as long as the use of the Lot is consistent with the restrictions herein and provided that the lease agreement between Owner and lessee shall be written, shall be for a term of not less than thirty (30) days and shall provide that the terms of the lease shall be subject in all respects to the provisions of this Declaration and all other documents of the Association and that the failure of the lessee to comply with the terms of such documents shall constitute a default under the lease.

ARTICLE VI INSURANCE Section 1. The Board of Directors is authorized (but not directed) to secure such insurance as it deems advisable and prudent and the coverage, proceeds and benefits from any such insurance policy shall be equal for all Lot Owners. No director shall be liable for the failure

to obtain any such insurance. Each Owner is hereby encouraged and entitled to secure and provide their respective insurance coverage. The Association has no duty to provide any insurance of any type on the Common Areas, the Properties or elsewhere.

ARTICLE VII GENERPLL PROVISIONS Section I . Enforcement. The Association or any Owner shall have the right to enforce,

by any proceeding at law or in equity in the Circuit Court of the City of Williarnsburg and

County of James City, Virginia, all restrictions, conditions, covenants reservations, liens and charges now or hereaAer imposed by the provisions of this Declaration in accordance with the Act and all other applicable laws. Failure by the Association or by any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter. The Court is hereby specifically empowered and authorized to use its equitable powers and authorities to correct any arbitrary, capricious or unreasonable act by the Association or any Lot Owner or committee connected therewith. Section 2. Several>ility. Invalidation of any one of these covenants or restrictions by my jud-ment or court order shall in no way affect any other provisions which shall remain in full force and effect. Section 3. Amendment. The covenants and restrictions of this Declaration shall run uith and bind the land for a term of forty (40) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years. This Declaration may be amended by an instrument signed by not less than seventy-five percent (75%) of the Lot Owners and fiQ-one percent (5 1%) of first mortgagees as hereinafter defined, 4 I

such vote to include at least a majority of the votes of all Members present, in person or by

proxy, and voting at any meeting of the Association properly called for the purpose of acting on

such amendment, other than the Declarant; provided that, so long as there is a Class B membership, such amendment requires the prior approval of HUD and/or VA, as applicable. NoMithstanding the foregoing, the Declarant reserves the right to make changes or revisions to comply with the requirements of HUD, VA, t l ~ eFederal National Mortgage Association or Federal IIonte Loan Mortgage Corporation. Any amendment upon receiving the necessary

a 4

approval shall be recorded in a document executed on behalf of the Association by its duly authorized officers. Any amendment must be recorded. In no event shall these covenants and restrictions terminate for so long as the Association owns any Common Area. Section 4. Association Documents. In accordance with the Act, the Association shdl maintain current copies of the Declaration, Articles of Incorporation, Bylaws, Rules and

Regulations and budgets and shaIl provide copies upon request to Owners and Purchasers. The Association shall annually cause to be prepared a statement for each fiscal year which shall be

provided to the Owners at each annual meeting. Section 5. Additional Covenants. It is understood and agreed, anything to the contrary contained herein notwithstanding, as follows: (a)

A first mortgagee wiIl be provided written notification of any default by the

mortgagor of such Lot in the performance of such mortgagor's obligation under the Subdivision documents which is not cured within thirty (30) days; as used herein, the terms "first mortgage," "mortgage" or "mortgagor" shall have the same meaning and import as "first deed of trust Q C)

noteholder" or "frrst deed of trust" or "grantor of a deed of trust"; the terms "mortgage" and

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"deed of trust" for the purposes herein shall have the same meaning and intent (b) Any first mortgagee who comes into possession of a Lot in the Properties

pursuant to the remedies provided in the mortgage, or foreclosure of the mortgage, or deed (or

assignment) in lieu of foreclosure shall be exempt from all "rights of first refusal,"if any. (c) Any first mortgagee who comes into possession of a Lot pursuant to the

remedies provided in the mortgage, foreclosure of the mortgage, or deed (or assignment) in lieu

of foreclosure shall take the Property free of any claims for unpaid assessments or charges

against the mortgaged unit which accrue prior to the time such holder comes into possession of the Lot. (d) Unless at least fifty-one percent (51%) of the first mortgagees (based upon

one [ I ] vote for each first mortgagee) of individual h l s in the Properties have given their prior written approval, the Association shall not be entitled to:

(I) By act or omission seek to abandon, petition, subdivide, encumber, sell or transfer real estate or improvements thereon which are owned, directly or indirectly, by such Association for the benefit of the Owners and Lmts in the Properties, provided, however,

that the Declarant, or the Associarion by a vote of its Board of Directors, at any time may convey all or any part of the Common Area to the County of James City, Virginia, or to any other public

body, who shall thereafter maintain the samc. The conveyance to the County of James City of othcr public body, or the granting of easements for public utilities or for other public purposes consistem with the intended use of such property by the Association shall not be deemed a prohibited transfer within the meaning of this cIause.

D -4

(2) Change the method of determining the obligations, assessments, dues

_L,

or other charges which may be levied against an Owner. (3)

Use hazard insurance proceeds for losses to any Common Area

property for other than the repair, replacement or reconstruction of such improvements. (e) First mortgagees shall have the right to examine the books and records of the

Association or any entity which OWIS the Common Area or the property of the Association. (f) First mortgagees of Lots in the Properties may, jointly or singly, pay taxes or

other charges which are in default and which may have become a charge against any Con~mon

Area property and may pay overdue premiums on h z a r d

~ I I s u M ~ policies, c~

or secure new

hazard insurance coverage on the lapse of a policy, for such property, and first mortgagees

making such payment shaiI be owed immediate reimbursement therefor from the Association. Entitlement to such reimbursement is hereby agreed to and this insmment shall constitute an agreement in favor of all first mortgagees of Lots in the Progerties. (g) No provision of the Association Articles of Incorporation, or the declaration

of easements, restrictions and covenants, or any similar instrument pertaining to the Properties or to Lots therein gives a Lot Owner or any other party priority over any r i g h ~of first mortgagees of Lots herein pursuant to their mortgages in the case of a distribution to Lot Owners of

insurance proceeds or condemnation awards for losses to or taking of the Association's common property, (h) Lor Owners have a right to enjoyment of the Common Area as provided

herein and such property is owned in fee by the Association. The Cornrnon Area was conveyed to the Association unencumbered except for my easements granted for public utilities or for other public purposes consistent with the intended use of such Property by the Association. The Common Area cannot be mortgaged or conveyed without the consent of two-thirds (2/3) of the Lot Owners (excluding the Declarant).

(i) In the event that management other than self-management is required of the Assodation ("Outside Management"), and in the event that the Association elects or decides to terminate said Outside Management, then all first mortgagees shall be given at least thirty (30) days notice of said action.

(j) All first mortgagees shall be entitled to receive reasonable written notice of

damage to or condemnation of any part of the Common Area Q Any approval herein required by a first mortgagee shall be implied if a first

mortgagee has failed to submit a response within iourteen (14) days to a written proposal or notice, provided the proposal or notice was delivered by certified or registered mail, with a return

receipt requested. Section 6. Easement for Public Necessity. Upon recordation of this Declaration, there is hereby granted to the County of James City, Virginia, its employees and agents a perpetual right of ingress and egress over and upon the Common Area in order to assure the performance of all public duties, including but not limited to law enforcement oficers, rescue squad personnel, fire

fighring personnel and government building officials and inspectors. In addition, Dmlarant shall

have the right to construct storm water management facilities on the Common Area and to have

an easement for ingress and egress and for all type easements over, under and upon the Common Area for the benefit of the Lots.

ARTICLE VIII DECLARANT'S RIGHTS AND IZEPRESENTATIVES 0

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Section 1. R i ~ l ~ t Anything s, herein to the contrary notwithstanding, the Declarant shall at all times have and does hereby reserve to itself, its successors and assigns:

(a) the righi to use Lots for sales models andfor a sales ofice for sale of all Lots witlain the Subdivision.

(b) A non-exclusive easement over and upon the Common Area and for purposes of making improvements to the Common Area and on all Lots located within the Subdivision.

ARTICLE IX CONDErnATION In the event of a condemnation or taking by eminent domain by any local, state or federal

authority of all or any part of the Common Area, the Association is hereby designated and appointed as attorney-in-fact for ali Owners for purposes of representing all Owners in any proceedings, negotiations, settlements or agreements. Any funds received by the Association shall be held for the benefit of the Association and be used by the Association for the purposes

herein set forth, unless there is a total taking of all the Common Area, in Which event the funds shall be distributed pro rata among the Owners and their respective first mortgagees.

ARTICLE X ANNEXATION Section 1. Annexation. A11 or any part of the following described Properties may be

annexed hereto at any time hereafter solely by Declarant without the consent of the Class A or

Class B members of the Association; and upon the same happening, Declarant shall be deemed 0

the "Declarant" as herein defined and shall be entitled to any and subject to all of the privileges,

I 4

rights and liabilities herein set for Declarant. Said Properties which may be so annexed being

described as all or any portion of the property described as follows:

All those certain pieces, parcels or tracts of land as described on the attached Exhibit B, which are hereby made a part hereof by reference hereto, and any and all adjacent parcel or parcels of land now or hereafier acquired by Declarant. Section 2. Method of Annexation. Declarant may cause such annexation to be made by

includjng the provisioris of such annexation to be shown on such recordation plat or by an instrument executed by Declarant and duly recorded describing the parcel or parcels to be

annexed and referring to and making such parcel or parcels subject to the within Covenants, Conditions and Restrictions, or both.

Upon any such annexation being so made, the real estate or "Properties" covered thereby together with the Declarant and all owners thereof and their heirs, successors and assigns shall be entitled to, and subject to, all of the terms of the within Covenants, Conditions and Restrictions in the same manner as if such annexed parcel had been included within the legal description as

contained in said The Villages at Westn-iinster, Phase I, Section 1. It is further understood and agreed that such annexation of all o r of any part of the real estate hereinabove described shall be solely at the option of the Declarant, and Declarant may from time to time annex all or any part or parts thereof as determined solely by the Declarant without the necessity of approval of any Lot Owner of the Association, anything to the contrary notwithstanding in the Articles of Incorporation or Bylaws of the Association, provided, however, that any such annexation requires the prior approval of

HLTD and/or VA,

as applicable, so Iong as there is a Class B

membership.

Section 3. Encroachments. In the event any portion of any improvement on any Lot encroaches upon the Common Areas and facilities, or an encroachment for an improvement in

'2 7 0

Q 4

the Common Areas exists upon a Lot, as result of construction, reconstruction, repair, shifting, settlement or movement of any portion thereof, a valid casemalt for the encroachment and for the maintenance of the same shall exist so long as the encroachment exists. In addition, there is

hereby created an easement for the encroachment of the entrance sign or signs to Tile Villages at Westminster on any adjacent Lot(s).

IN WITNESS WHEREOF, the undersigned Declarant, Warhili Associaies, L.L.C., a Virginia limited liability company, has caused this instrument to be executed on its behalf as of the date and year first above written.

W m L ASSOCIATES, L.L.C. By: Atlantic Homes Development Corporation Its: Operating Manager

COMMONWEALTH OF VIRGINIA City of Newport News, to wit:

a Notary Public in and for the city and ,J, ,I!, ' 1, . (c~dk 1, Commonwealth aforesaid, do hereby certifi that Joseph P. Byme, as Vice President of Atlantic Homes Development Corporation,-theoperating Managerof Warhill Associates, L.L.C., a Virginia limited liability company, whose name is signed to the foregoing writing bearing date on the 22nd day of August, 1997, has acknowledged the same before me in city and Commonwealth aforesaid. #'

Given under my hand this &-i day of

k'~hh,? 2yt:Il d!.L,

Notary Public

My commission expires:

'~L3t /?I

, 1997.

L)J (&

EXHIBIT A

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF

THE VILLAGES AT WESTMINISTER, SECTJON 1A

Description of the property to be subject to this Declaration and the rules incorporated

into it, are as follows:

All those certain lots, pieces or parcels of land situate, lying and being in James City County, Virginia, Lots Numbered One (1) through Eighty-Nine (89), and those certain parcels labeled "Nature Open Space Easement" all as shown on that certain plat entitled, "THE VILLAGES AT W E S m S T E R , PHASE I, SECTION I, BERKELEY DISTRICT, JAMES CITY COUNTY, VIRG-TNZA" dated December 12, 1996, made by Rickmond Engineering, Inc., and duly recorded in the Clerk's Office for the Circuit Court of the City of Williamsburg and County of James City, Virginia, in Plat Book 67, pages 23 through 26, to which reference is hereby made.

EXHlBIT El DECLARATION OF COVENANTS, CONDITIONS AM) RESTWCTIONS OF

TXXE VXLLAGES AT WESTMINSTER, SECTION 1A

Description of the property which may be annexed pursuant to Article X of this

Declaration is:

All or any podion of that certain piece or parcel of land, together with all improvements thereon and appurtenances thereto, including all riparian rights, shown and set out as "191.2_+ACRESWonthe plat of survey entitled, "Boundary Survey of a Portion of the Land of "TMB Service Corporation" Being That Easterly Portion of the Warhill Tract," made by Rickmond Engineering, Inc., dated .4priI 10, 1996, a copy of which is recorded in Plat Book 65, at page 16.

LESS AND EXCEPT all those certain lots, pieces or parcels of land situate, lying and being in James City County, Virginia, Lots Numbered One (1) though Eighty-Nine (89), and those certain parcels labeled "Nature Open Space Easement" all as shown on that certain plat entitled, "THE VILLAGES AT W E S m S T E R , PHASE I, SECTION I, BERKELEY DISTRICT, JAMES CITY COUNTY, VIRGINIA" dated December 12, 1996, made by Rickmond Engineering, Inc., and duly recorded in the Clerk's Office for the Circuit Court of the City of Williamsburg and County of James City, Virginia, in Plat Book 67, pages 23 through 26, to which reference is hereby made. mG!h!k City cf VA:!ia;nsburg and Cwnty JL.,.~. -. . ..,, to wit: htho Cli;:,;.. . . .

BERKELEY REALTY PROPERTY MANAGEMENT, INC. 150 STRAWBERRY PLAINS RD. SUITE A1 WILLIAMSBURG, VA 23188-3408 Property

Inspection Report

RESALE PROCESSING DEPARTMENT PHONE: (757) 229-6810 FAX: (757) 229-8208

Villages of Westminster Homeowners Association, Inc. Property Address:

6235 somerset lane williamsburg, va

Order #: N61-130866 Order Date: 9/4/2012 10:12:55AM

GENERAL INFORMATION Type of Association/Community?

Homeowners Association

If Sub or Master Association, explain?

Master Association

PROPERTY INSPECTION INFORMATION Date of Inspection

9/8/2012

Time of Inspection Inspector's Name

CJ Jones

Number of Photos Attached

Inspection Observations Everything ok. Covenant Violations Noted No violations noted. Completed By:

Talaya M Spratley THIS INSPECTION WAS MADE TO DETERMINE IF THE UNIT/HOME IS IN COMPLIANCE WITH THE COVENANTS, DESIGN STANDARDS AND RULES OF THE ASSOCIATION. IT IS NOT INTENDED TO COMMENT ON THE STRUCTURAL ASPECTS OF THE UNIT/HOME, NOR ZONING COMPLIANCE, HEALTH REGULATIONS, ETC. IT IS NOT POSSIBLE TO BE 100% CERTAIN OF ASSOCIATION RELATED COMPLIANCE AS NOT ALL AREAS OF THE UNIT/HOME ARE VISIBLE DURING THIS INSPECTION.

This information is being provided by Berkeley Realty Property Management, Inc. as a courtesy service to lenders and other real estate professionals. Although Berkeley Realty Property Management, Inc. believes that the information provided is complete and accurate the requesting party understands and acknowledges that this information is subject to change without notice and that Berkeley Realty Property Management, Inc. is not responsible for any inaccurate or omitted information.

9/12/2012

Page 1 of 1

BERKELEY REALTY PROPERTY MANAGEMENT, INC. 150 STRAWBERRY PLAINS RD. SUITE A1 WILLIAMSBURG, VA 23188-3408

RESALE PROCESSING DEPARTMENT PHONE: (757) 229-6810 FAX: (757) 229-8208

Resale Disclosure Statement

Villages of Westminster Homeowners Association, Inc. PLEASE REFER TO PAGE 2 FOR COMPLETE ESCROW INSTRUCTIONS AND DETAILS Order #: N61-130866 Statement Date: 9/14/2012

Property Address: 6235 somerset lane williamsburg, va Order Date: 9/4/2012 10:12:55AM

Escrow #: 1 #: Owner / Seller: nick reams and rose graining

Requested By: wendy walker Phone #: (757)869-3553

Closing Date: 11/26/2012 12:00:00AM

Fax #: (757)941-0668

Buyer's Name: william and ann tennent

Contact Name: heritage title

Buyer's Address:

Contact Phone: 757-213-0710

City/State/Zip:

Contact Email:

Buyer's Phone #:

FEES DUE TO BERKELEY REALTY PROPERTY MANAGEMENT, INC. Processing Fee

Order #

N61-130866

$225.00

Expedite Fee

Delivery Fee

$0.00

Convenience Fee

$0.00

Tax

$0.00

Amount Due

$0.00

$225.00

Amount Paid

$0.00

Balance

$225.00

Buyer's Post-Closing Transfer Fee

$50.00

Other Fees

$0.00

Total Due

$275.00

Please reference ALL order number(s) from above on all checks you issue.

ALL FEES/AMOUNTS PAYABLE AT CLOSING Mail all payments to:

Berkeley Realty Property Management, Inc. 150 Strawberry Plains Rd. Suite A1 Williamsburg, VA 23188-3408

PLEASE PROVIDE SEPARATE CHECKS FOR AMOUNTS BELOW:

路

Please collect $275.00 for above noted fees.

MAKE CHECK PAYABLE TO: Berkeley Realty Property Management, Inc. 路

Please collect $0.00 for Association fees. (See page 2 for Comments & Fee Details)

MAKE CHECK PAYABLE TO: Villages of Westminster Homeowners Association, Inc. Please provide Berkeley Realty Property Management, Inc. a copy of:

HUD-1 or detailed Settlement Agreement to ensure accurate transfer of ownership

This information is being provided by Berkeley Realty Property Management, Inc. as a courtesy service to lenders and other real estate professionals. Although Berkeley Realty Property Management, Inc. believes the information provided to be complete and accurate, the requesting party understands and acknowledges that this information is subject to change without notice and that Berkeley Realty Property Management, Inc. is not responsible for any inaccurate or omitted information.

9/14/2012

Page 1 of 6

BERKELEY REALTY PROPERTY MANAGEMENT, INC. 150 STRAWBERRY PLAINS RD. SUITE A1 WILLIAMSBURG, VA 23188-3408

RESALE PROCESSING DEPARTMENT PHONE: (757) 229-6810 FAX: (757) 229-8208

Resale Disclosure Statement

Villages of Westminster Homeowners Association, Inc.

FEES DUE TO ASSOCIATION

ADDITIONAL COMMENTS

ASSESSMENTS PAID THROUGH: 12/31/2012 Current Balance

$0.00

Association Initial Assessment

$0.00

Working Capital Contribution

$0.00

Reserve Contribution

$0.00

Legal Fees

$0.00

Buyer’s Advanced Assessments

$0.00

Other Fees

$0.00

Other Fees

$0.00

Other Fees

$0.00

TOTAL DUE: $0.00 Association Assessments The Property Assessments is: $185.00

Assessments are paid: SemiAnnual -due January & July

The Late Fee is: $25.00

Assessments are due on the: 1st

Late Fee Interest is: 10%

Assessments are past due on the: 30 days

Is there an Initial Fee?

Yes o

No þ

If so, how is Initial Fee determined / calculated? Other Fees / Assessment amount?

$85.50

Purpose of Other Fees / Assessment? Optional trash program

Amount of any active Special Assessments?

$0.00

Purpose of Special Assessment?

FINANCIAL INFORMATION

Expenditure of funds, if any, approved by the Association which shall require an assessment in addition to the regular assessment during the current or immediately succeeding fiscal year? None

This information is being provided by Berkeley Realty Property Management, Inc. as a courtesy service to lenders and other real estate professionals. Although Berkeley Realty Property Management, Inc. believes the information provided to be complete and accurate, the requesting party understands and acknowledges that this information is subject to change without notice and that Berkeley Realty Property Management, Inc. is not responsible for any inaccurate or omitted information.

9/14/2012

Page 2 of 6

BERKELEY REALTY PROPERTY MANAGEMENT, INC. 150 STRAWBERRY PLAINS RD. SUITE A1 WILLIAMSBURG, VA 23188-3408

RESALE PROCESSING DEPARTMENT PHONE: (757) 229-6810 FAX: (757) 229-8208

Resale Disclosure Statement

Villages of Westminster Homeowners Association, Inc. Status and amount of any reserve or replacement fund and any portion of the fund designated for any specified project by the executive organ? $93,800.00 with $3,000.00 allocated to the clubhouse for repairs repairs

and

$9,000.00 allocated

the

pool

for

Are there any other entities or facilities to which the unit owners may be liable for fees or other charges? If so, explain. No If there is an Association loan, what is the loan balance?

n/a

Is there an active leasehold that effects the association/condominium? If so, what is the nature of the leasehold; what is the remaining term of said leasehold; what are the provisions governing any extension or renewal thereof. No If a Unit/Home is acquired through foreclosure is mortgage company responsible for Association Assessments? If so, explain? Yes, only from when title was taken back. LEGAL INFORMATION

Does the Association hold the Right of First Refusal on this property transaction? If so, explain the process for obtaining a waiver and are first mortgage lenders Exempt? No Do the legal documents provide for architectural and/or landscaping controls and approval?

Yes þ

No o

Do the governing documents specifically allow the Association to foreclose on an owner’s property for failure to pay Assessments? Are there any liens against this specific Property? If so, explain?

Yes þ

No o

Yes o

No þ

Is the Association involved with any litigation with this specific Association Member? If so, explain? No Are there any active judgments against the Association? If so, explain? No

The nature and status of any pending lawsuits or unpaid judgments to which the unit owners' association is a party which either could or would have a material impact on the association or the unit owners/members, or which relates to the unit/lot being purchased? None Do the legal documents provide for mandatory mediation or arbitration? CONDO ACT INFORMATION (VIRGINIA PROPERTIES ONLY)

This information is being provided by Berkeley Realty Property Management, Inc. as a courtesy service to lenders and other real estate professionals. Although Berkeley Realty Property Management, Inc. believes the information provided to be complete and accurate, the requesting party understands and acknowledges that this information is subject to change without notice and that Berkeley Realty Property Management, Inc. is not responsible for any inaccurate or omitted information.

9/14/2012

Page 3 of 6

BERKELEY REALTY PROPERTY MANAGEMENT, INC. 150 STRAWBERRY PLAINS RD. SUITE A1 WILLIAMSBURG, VA 23188-3408

RESALE PROCESSING DEPARTMENT PHONE: (757) 229-6810 FAX: (757) 229-8208

Resale Disclosure Statement

Villages of Westminster Homeowners Association, Inc. Is any portion of the condominium association located within a development subject to the Property Owner's Association Act (Section 55-508 et seq.) of Chapter 26 of Title 55?

Yes o

No þ

Has the Association filed the Annual Report with the Virginia Common Interest Community Board?

Yes þ

No o

Yes þ

No o

N/A o

The Association is incorporated under the laws of the Commonwealth of Virginia. The name and address of the Registered Agent is: Sue Tarley 4808 Courthouse Street Suite 102 Williamsburg, VA 23188 COVENANT COMPLIANCE INFORMATION

Has the Unit/Home been specifically inspected for compliance with covenants in conjunction with this inquiry? A description of any conditions on the owner's property, or limited common area assigned thereto that the Association has actual knowledge are in violation of the Covenants/Restrictions, Bylaws or Rules applying to the subdivision/condominium: Has notice been received from any governmental authority concerning any health or building code issues with respect to the unit, the limited common elements assigned to the unit, or any other portion of the condominium? If so, explain? GENERAL INFORMATION

What County is Association located in?

James City County

Type of Association/Community?

Homeowners Association

If Sub or Master Association, explain?

Master Association

Date of Association Fiscal Year End?

December 31st

Is Unit/Home held in Fee Simple?

Yes þ

Limitation on the number of persons who may occupy a unit as a dwelling?

James City County Ordinances

Is the project an Assisted Living Community? If so, what services are provided? If condominium, number of Units owned by Developer?

No o

Is renting/leasing permitted? If so, what restrictions exist? Yes, lease can not be less than 30 days and is subject to Association governing rules

Are pets permitted? If so, are there any restrictions? Yes, See Article 5 section 4

This information is being provided by Berkeley Realty Property Management, Inc. as a courtesy service to lenders and other real estate professionals. Although Berkeley Realty Property Management, Inc. believes the information provided to be complete and accurate, the requesting party understands and acknowledges that this information is subject to change without notice and that Berkeley Realty Property Management, Inc. is not responsible for any inaccurate or omitted information.

9/14/2012

Page 4 of 6

BERKELEY REALTY PROPERTY MANAGEMENT, INC. 150 STRAWBERRY PLAINS RD. SUITE A1 WILLIAMSBURG, VA 23188-3408

RESALE PROCESSING DEPARTMENT PHONE: (757) 229-6810 FAX: (757) 229-8208

Resale Disclosure Statement

Villages of Westminster Homeowners Association, Inc. Is street parking permitted? If so, are there any restrictions? Yes, for passenger vehicles only see Article 5 section 10

Is there a key to common areas? If so, is there a deposit/amount? Yes, RV storage lot, $25.00 deposit

Is RV/Boat storage permitted? If so, are there any restrictions? Yes, only on RV/Boat storage lot

What areas of the community is the owner responsible to maintain other than their Unit/Home/Lot? None SIGNS AND FLAGPOLES (VIRGINIA PROPERTIES ONLY)

Are there any restrictions, limitations, or prohibition on the right of a lot owner to place a sign on the owner's lot advertising the lot for sale? Yes, can not be over 5 sq. ft. Are there any restrictions, limitations or prohibition on the right of a unit owner to display the flag of the United States, including, but not limited to reasonable restrictions as to the size, time, place and manner of placement or display of such flag? No INSURANCE INFORMATION

Insurer's Name?

Nationwide

Contact Information?

Mike Rock

Phone Number?

757-564-8900

The amount of Fidelity Bond Coverage?

$100,000.00

The amount of coverage for Directors and Officers?

$1,000,000.00

Are any Common Area structures located in a Special Flood Hazard Area?

Yes o

Amount of General Liability Insurance?

1,000,000.00

Amount of Property Insurance coverage?

201,000.00

Minimum number of days required for written notification to be given to association or insurance trustee before any substantial changes or cancellation of the insurance coverage?

10 days

No Ăž

What additional insurance coverage would normally be secured by each individual unit/homeowner in an association? Homeowners insurance Other insurance information?

MANAGEMENT COMPANY INFORMATION This information is being provided by Berkeley Realty Property Management, Inc. as a courtesy service to lenders and other real estate professionals. Although Berkeley Realty Property Management, Inc. believes the information provided to be complete and accurate, the requesting party understands and acknowledges that this information is subject to change without notice and that Berkeley Realty Property Management, Inc. is not responsible for any inaccurate or omitted information.

9/14/2012

Page 5 of 6

BERKELEY REALTY PROPERTY MANAGEMENT, INC. 150 STRAWBERRY PLAINS RD. SUITE A1 WILLIAMSBURG, VA 23188-3408

RESALE PROCESSING DEPARTMENT PHONE: (757) 229-6810 FAX: (757) 229-8208

Resale Disclosure Statement

Villages of Westminster Homeowners Association, Inc. Berkeley Realty Property Management, Inc 150 Strawberry Plains Rd, Ste A-1 Williamsburg, VA 23188 Phone (757) 229-6810 Fax (757) 229-8208 I hereby certify that the above information is true and correct to the best of my knowledge and belief.

Talaya M Spratley

9/14/2012

Signature of person completing form and date completed

Statement Date

This information is being provided by Berkeley Realty Property Management, Inc. as a courtesy service to lenders and other real estate professionals. Although Berkeley Realty Property Management, Inc. believes the information provided to be complete and accurate, the requesting party understands and acknowledges that this information is subject to change without notice and that Berkeley Realty Property Management, Inc. is not responsible for any inaccurate or omitted information.

9/14/2012

Page 6 of 6

ASSOCIATION DISCLOSURE PACKET NOTICE Note to prospective purchasers: The lot you are considering purchasing is in a development which is subject to the provisions of the Virginia Property Owners’ Association Act. Living in a community association carries with it certain rights, responsibilities and benefits. Some of the benefits include the right to use common areas, which may include swimming pools, parks, playgrounds and other recreational facilities. In order to finance the operation of the community, each owner is responsible for and obligated to pay regular assessments, and if necessary, special assessments to ensure that the financial requirements are met. Failure to pay any of these assessments may result in a lien being placed on your property. The use of common areas, financial obligations of lot owners’ and other information concerning the rights, responsibilities and benefits resulting from the purchase of a lot in this common interest community are subject to the provisions of governing documents that typically include a declaration, bylaws, articles of incorporation and rules and regulations. These documents play an important role in association living and should be reviewed carefully prior to your purchase. Some decisions of your association will be made by the board of directors, while others will be made by a vote of all association members, made up of the other lot owners in your development. You will be bound by all decisions of the association and the board of directors. The documents cited above contain information concerning the selection of members of the board of directors, meetings, voting requirements, and other important information you should become familiar with. REMEMBER: Failure to comply with the governing documents of your association can result in legal action being taken against you. You may wish to become active in your association, either by running for the board of directors or by serving on a committee. Your involvement is important, as you will be bound by all decisions of the association and the board of directors.

The name of your association is: See Enclosed Resale Disclosure Package

Lot number and address: See Enclosed Resale Disclosure Package

Assessments and/or Mandatory Fees you are responsible for: Assessments: Special assessments: Other entity or facility: Other fees:

See Enclosed Resale Disclosure Package See Enclosed Resale Disclosure Package See Enclosed Resale Disclosure Package See Enclosed Resale Disclosure Package

Failure to pay any of the above Assessments and/or mandatory Fees may result in nonjudicial foreclosure on your property or the following: See Enclosed Governing Documents and Related State Statutes

ALL DOCUMENTS AND INFORMATION CONTAINED IN THIS DISCLOSURE PACKET PLAY AN IMPORTANT ROLE IN LIVING WITHIN A COMMON INTEREST COMMUNITY AND SHOULD BE REVIEWED CAREFULLY PRIOR TO YOUR PURCHASE OF THE PROPERTY. A LIST OF THOSE DOCUMENTS YOU ARE ENTITLED TO RECEIVE IN ACCORDANCE WITH THE PROPERTY OWNERS’ ASSOCIATION ACT IS PRINTED ON THE BACK OF THIS NOTICE. Recipient Name (print): Recipient signature: Date: This form was developed for use in accordance with §55-509.5 and §54.1.2350 of the Code of Virginia and is to accompany POA disclosure packet.

The following is a list of documents and information you are entitled to receive in accordance with the Property Ownersâ&#x20AC;&#x2122; Association Act. 1. The name of the association and, if incorporated, the state in which the association is incorporated and the name and address of its registered agent in Virginia; 2. A statement of any expenditure of funds approved by the association or the board of directors that shall require an assessment in addition to the regular assessment during the current year or the immediately succeeding fiscal year; 3. A statement, including the amount of all assessments and any other mandatory fees or charges currently imposed by the association, together with any post-closing fee charged by the common interest community manager, if any, and associated with the purchase, disposition, and maintenance of the lot and to the right of use of common areas, and the status of the account; 4. A statement of whether there is any other entity or facility to which the lot owner may be liable for fees or other charges; 5. The current reserve study report or summary thereof, a statement of the status and amount of any reserve or replacement fund, and any portion of the fund allocated by the board of directors for a specified project; 6. A copy of the association's current budget or a summary thereof prepared by the association, and a copy of its statement of income and expenses or statement of its financial position (balance sheet) for the last fiscal year for which such statement is available, including a statement of the balance due of any outstanding loans of the association; 7. A statement of the nature and status of any pending suit or unpaid judgment to which the association is a party and that either could or would have a material impact on the association or its members or that relates to the lot being purchased; 8. A statement setting forth what insurance coverage is provided for all lot owners by the association, including the fidelity bond maintained by the association, and what additional insurance would normally be secured by each individual lot owner; 9. A statement that any improvement or alteration made to the lot, or uses made of the lot or common area assigned thereto are or are not in violation of the declaration, bylaws, rules and regulations, architectural guidelines and articles of incorporation, if any, of the association; 10. A statement setting forth any restriction, limitation, or prohibition on the right of a lot owner to place a sign on the owner's lot advertising the lot for sale; 11. A statement setting forth any restriction, limitation, or prohibition on the right of a lot owner to display any flag on the owner's lot, including but not limited to reasonable restrictions as to the size, place, and manner of placement or display of such flag and the installation of any flagpole or similar structure necessary to display such flag; 12. A copy of the current declaration, the association's articles of incorporation and bylaws, and any rules and regulations or architectural guidelines adopted by the association; 13. A copy of any approved minutes of the board of directors and association meetings for the six calendar months preceding the request for the disclosure packet; 14. A copy of the notice given to the lot owner by the association of any current or pending rule or architectural violation; 15. A copy of the fully completed one-page cover sheet developed by the Common Interest Community Board pursuant to Section 54.1-2350; and 16. Certification that the association has filed with the Common Interest Community Board the annual report required by Section 55-516.1, which certification shall indicate the filing number assigned by the Common Interest Community Board, and the expiration date of such filing.