Loading...
HomeMy WebLinkAboutDeclaration of covenants and Restrictions DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR SPRING CREEK TERRACE THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF BRAZOS § THAT this Declaration is made on the date hereinafter set forth by PIL Investments, LLC, a Texas limited liability company (hereinafter referred to as "Declarant "), and is as follows; WITNESSETH: WHEREAS, Declarant is the Owner of that certain real property known as Spring Creek Terrace, in Brazos Texas, according to the map or plat (hereinafter referred to as "Plat ") thereof recorded in Volume , Page , of the Official Records of Brazos County, Texas; and WHEREAS, It is deemed to be in the best interests of Declarant and any other persons who may purchase property In Spring Creek Terrace, that there be established and maintained a uniform plan for the Improvement and development of Spring Creek Terrace, as a highly restricted and modem Subdivision of the highest quality; NOW, THEREFORE, Declarant hereby declares that all of the properties described above as being owned by Declarant in Spring Creek Terrace, shall be held, sold and conveyed subject to the following easements, restrictions, covenants and conditions, all of which are for the purpose of enhancing and protecting the value, desirability and attractiveness of said real property. These easements, covenants, restrictions and conditions shall run with said real property and be binding upon all parties having or acquiring any right, title or interest in a Lot, as hereinafter defined, their heirs, successors and assigns, and shall inure to the benefit of each Owner thereof. ARTICLE I DEFINITIONS The following words, when used in this Declaration of Covenants, Conditions and Restrictions, shall have following meanings: Section 1. "Association" shall mean and refer to OWNERS ASSOCIATION OF SPRING CREEK TERRACE, INC., a Texas nonprofit corporation, its successors and assigns. Section 2. "Common Area" shall mean and refer to that property owned or to be acquired by the Association and shall include, but is not limited to, all recreational facilities, community facilities, swimming pools, storage facilities, pumps, trees, landscaping, sprinkler systems, pavement, streets, pipes, wires, conduits, drainage areas, detention ponds and other public utility lines situated thereon. Section 3. "Declarant" shall mean and refer to PIL INVESTMENTS, LLC, its successors and assigns, provided such successors and assigns (i) acquire more than one Lot in the Subdivision for purposes of development or resale and (ii) are assigned rights as a Declarant by an instrument in Spring Creek Terrace Covenants Page 1 of 26 writing executed by Declarant, and filed of record In the Official Records of Brazos County, Texas. Section 4. "Lot" shall mean and refer to any of the numbered lots shown on the Subdivision Plat or any replat thereof. Section 5. "Living Unit" shall mean and refer to any improvements on a Lot which are designed and intended for occupancy and use as a residence by one person, by a single family, or by persons living together as a single housekeeping unit; provided, however, the term "Living Unit" shall not include a garage constructed on the Lot which is detached from the other improvements on the Lot. Section 6. "Occupied Lot" shall mean and refer to any Lot on which there is a Living Unit in which one or more persons are residing. Section 7. "Member" shall mean and refer to every person or entity that holds a membership in the Association. Section 8. "Owner" shall mean and refer to the record owner, whether one or more persons or entities, of fee simple title to Lot which is a part of the Subdivision, Including contract sellers, but excluding those having such interest merely as security for the performance of an obligation. However, the term "Owner" shall include any mortgagee or lien holder who acquires fee simple title to any Lot through judicial or non judicial foreclosure. Section 9. "Subdivision" shall mean and refer to that certain real property within the perimeters of the legal description of Spring Creek Terrace, a Subdivision in Brazos County, Texas, as set forth on the Plat thereof recorded In Volume , Page , Official Records of Brazos County, Texas. ARTICLE II PROPERTY RIGHTS Section 1. Owner's Easement of Access and Enjoyment. Every Owner shall have an easement of access and a right and easement of enjoyment in and to the Common Area and such easement 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 a reasonable admission and other fees for the use of any recreational facilities situated on the Common Area(s) (b) The right of the Association to suspend a Member's voting rights and right to use the recreational and other facilities owned or operated by the Association, excluding domestic water, for any period during which any assessment against his Lot or any other sum due the Association by him remains unpaid; and for a period not to exceed sixty (60) days for any infraction of its published rules and regulations; and (c) The right of the Association to dedicate or transfer all or any part of the Common Area to any public agency, authority or utility for such purpose and subject to such conditions as may be determined by the Association. Spring Creek Terrace Covenants Page 2 of 26 j a 3 + Section 2. Delegation of Use. Any Owner may delegate in accordance with the Bylaws of the Association, his right of enjoyment to the Common Area and facilities to members of his family, his tenants, or contract purchasers who reside on the Lot owned by him. The Declarant, for each Lot owned within the Subdivision, hereby covenants, and each Owner of any Lot, by acceptance of a Deed therefore, whether it shall be express in the Deed or the evidence of the conveyance, is deemed to covenant that any lease executed on a Lot shall be in writing and contain provisions binding any lessee thereunder to the terms of this Declaration of Covenants. Conditions and Restrictions and any rules and regulations published by the Association applicable to the Common Area and further providing that noncompliance with these terms of the lease shall a default thereunder. Section 3. Title to the Common Area. The Common Area shall be owned by the Association or its successors, it being agreed that this provision is necessary in order to preserve the rights of the Owners with respect to the operation and management of the Common Area. Notwithstanding the above, the Declarant reserves the right to grant, convey, dedicate or reserve easements over, on or under the Common Area for utility services as set forth in this Declaration. ARTICLE III MEMBERSHIP AND VOTING RIGHTS Section 1. Organization. Declarant shall, when it is deemed appropriate by Declarant, cause the Association to be organized and formed as a nonprofit corporation under the laws of the State of Texas. The principal purposes of the Association shall be the collection, expenditure and management of the maintenance funds, enforcement of this Declaration, providing for the maintenance, preservation and architectural control (when the powers of the Committee terminate and the Committee's powers vest in the Association) within the Subdivision, the general overall supervision of all of the affairs and well being of the subdivision and other Subdivisions within its jurisdiction and the promotion of the health, safety and welfare of the residents within the Subdivision and other Subdivisions within its jurisdiction. Until the Association is so organized, Declarant shall enjoy all of the rights which would otherwise be exercised by the Association hereunder. Section 2. Membership. Every person or entity that is a record owner of a fee or undivided fee interest in a Lot which is a part of the Subdivision, including contract sellers, shall hold a membership in the Association. The foregoing is not intended to include persons or entitles that hold an interest in a Lot merely as security for the performance of an obligation. Membership shall be appurtenant to and may not be separated from ownership of a Lot. Ownership of a Lot shall be the sole qualification for membership. Any mortgagee or lien holder who acquires title to any Lot, which is a part of the Subdivision, through judicial or non - judicial foreclosure, shall be a Member of the Association. Section 3. Board of Directors. The Association shall act through a Board of Directors who will manage the affairs of the Association as specified in the Bylaws of the Association. Section 4. Voting Rights. There shall be two classes of membership entitled to voting rights in the Association with respect to the Subdivision and they shall be as follows: (a) Class A: All Owners, other than Declarant, shall be considered Class A Members, and for each Lot owned shall be entitled to one (1) vote on each matter coming before Spring Creek Terrace Covenants Page 3 of 26 the Members at any meeting or otherwise, unless their voting rights have been suspended by the Board of Directors as hereinabove provided In Article II, Section 1(b). When a particular Lot is owned by more than one individual or entity, all the individuals or entities holding an ownership interest in that Lot shall be considered Class A Members, however, for that particular Lot they shall be entitled to a total of no more than one (1) vote on each matter coming before the Members at any meeting or otherwise. The vote for such Lot shall be as they among themselves determined. (b) Class B: The Declarant, or its successor or assigns, as provided in Article I, Section 3, shall be considered a Class B Member, and for each vote for which Declarant is entitled by reason of (a) above, Declarant shall have three (3) additional votes until such time as the votes held by Class A members totals in the aggregate 90% of the total number of votes outstanding. Thereafter Declarant shall be a Class A Member. ARTICLE IV MEETING OF MEMBERS Section 1. Annual Meetings. The first annual meeting of the Members shall be held within one year from the date of incorporation of the Association, and each subsequent regular annual meeting of the Members shall be held in the same month of each year thereafter. The meeting shall be held at the place and hour designated by the Board of Directors. Section 2. Special Meeting. Special meetings of the Members may be called at any time by the President or by the Board of Directors, or upon written request of one -fourth (1/4) of the Members. Section 3. Notice of Meetings. Written notice of each meeting of the Members shall be given by, or at the direction of, Secretary or person authorized to call the meeting, by mailing a copy of such notice to each Members entitled to vote thereat addressed to the Member's address last appearing on the books of the Association, or supplied by such Members to the Association for the purpose of notice. Such notice may also be delivered to the Members' residences. Such notice shall specify the place, day and hour of the meeting, and, in the case of a special meeting, the purpose of the meeting. Section 4. uorum. The presence at the meeting of Members entitled to cast, or of proxies entitled to cast, a majority of the votes of Members shall constitute a quorum for any action except as otherwise provided in the Articles of Incorporation, the Declaration of these Bylaws. If, however, such quorum shall not be present, another meeting may be called subject to the same notice requirement, and the required quorum at such subsequent meeting shall be a majority of the quorum requirement for the prior meeting. The Association may call as many subsequent meetings as may be required to achieve a quorum (the quorum requirement being reduced for each such meeting, but not below any quorum required by law). No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting. Section 5. Proxies. At all meetings of Members, each Member may vote in person or by proxy. All proxies shall be in writing and filed with the Secretary. Every proxy shall be revocable and shall automatically cease upon conveyance by the Member of his Lot. ARTICLE V Spring Creek Terrace Covenants Page 4 of 26 BOARD OF DIRECTORS Section 1. Number. The affairs of the Association shall be managed by a Board of three (3) Directors, who must be Members of the Association. The Board may in its sole discretion, increase the number of board members, provided such change is made only after 30 days written notice to all Members. Section 2. Removal. Any Director may be removed from the Board, with or without cause, by a majority vote of the Members of the Association. In the event of death, resignation or removal of a Director, his successor shall be selected by the remaining members of the Board and shall serve for the unexpired term of his predecessor. Section 3. 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 4. Action Taken Without a Meeting. The Directors shall have the right to take any action in the absence of a meeting which they could take a meeting by obtaining the written approval of all the Directors. Any action so approved shall have the same effect as though taken at a meeting of the Directors. ARTICLE VI NOMINATION AND ELECTION OF DIRECTORS Section 1. Nomination. Nomination for election to the Board of Directors shall be made by written nominations or may also be made from the floor at the annual meeting. Nominations must be made from among Members. 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 provisions of the Declaration. The persons receiving the largest number of votes shall be elected. Cumulative voting is not permitted. ARTICLE VII MEETINGS OF DIRECTORS Section 1. Annual Meetings. The first annual meeting of the Directors shall be held within one year from the date of Incorporation of the Association, and each subsequent regular meeting of the Directors shall be held in the same month of each year thereafter. The meeting shall be held at the place and hour designated by the Board of Directors. Section 2. Special Meeting. Special meetings of the Board of Directors shall be held when called by the President of the Association, or by any Director, after not less than three (3) days notice to each Director. Section 3. Quorum. A majority of the number of Directors shall constitute a quorum for the transaction of business. Every act or decision done or made by a majority of the Directors present at a duly held meeting at which a quorum is present shall be regarded as the act of the Board. Spring Creek Terrace Covenants Page 5 of 26 ARTICLE VIII POWERS AND DUTIES OF THE BOARD OF DIRECTORS Section 1. Powers. The Board of Directors shall have power to: (a) suspend the voting rights of a Member during any period in which such Member shall be in default in the payment of any assessment levied by the Association. Such rights may also be suspended after notice and hearing for infraction of published rules and regulations; (b) exercise for the Association all powers, duties and authority vested in or delegated to this Association and not reserved to the membership by other provisions by these Bylaws, the Articles of Incorporation or the Declaration; (c) employ a manager, an independent contractor or such other employees as they deem necessary and to prescribe their duties, within the scope of the approved current year budget; (d) provide and pay out of the maintenance fund the following: (i) Taxes and assessments and other liens and encumbrances which shall properly be assessed or charged against the Common Areas rather than against the individual Owners, if any. (ii) Care and preservation of the Common Maintenance Area. (iii) The services of a professional person or management firm to manage the Association or any separate portion thereof to the extent deemed advisable by the Board (provided that any contract for management of the Association shall be terminable by the Association, with no penalty upon ninety (90) days prior written notice to the managing party) and the services of such other personnel as the Board shall determine to be necessary or proper for services of such other personnel as the Board shall determine to be necessary or proper for the operation of the Association, whether such personnel are employed directly by the Board or by the manager, provided, that any services of a professional person, management firm, or other personnel shall be provided to the Association at competitive rates. (iv) Legal and accounting services (v) A policy or policies of insurance insuring the Association against any liability to the public or to the Owners (and/or invitees or tenants) incident to the operation of the Association in any amount or amounts as determined by the Board of Directors, including a policy or policies of insurance as provided herein. (vi) Such fidelity bonds as may be required by the By -Laws or as the Board may determine to be advisable. Spring Creek Terrace Covenants Page 6 of 26 (vii) Any other materials, supplies, insurance, furniture, labor, services, maintenance, repairs, structural alternations, taxes, or assessments (including taxes or assessments assessed against an individual Owner) which the Board is required to obtain or pay for pursuant to the terms of this Declaration or by law or which in its opinion shall be necessary or proper for the enforcement of this Declaration. (e) Enter into contracts, maintain one or more bank accounts, and generally to have all the power necessary or incidental to the operation and management of the Association; (f) Make reasonable rules and regulations for the operation of the Common Maintenance Areas and to amend them from time to time; provided that, any rule or regulation may be amended or repealed by an instrument in writing signed by Owners constituting a majority of the votes of the Association, or with respect to a rule applicable to less than all the Common Areas, by a majority of the votes of the Owners in the portions affected. (g) Collect all assessments and enforce all penalties for non - payment including for filing of liens and institution of legal proceedings; and (h) Enforce the provisions of any rules made hereunder and to enjoin and seek damages from any Owner for violation of such provisions or rules. (i) Exercise Architectural Control. The Board may employ one or more architects, engineers, attorneys or other consultants to assist in carrying out its duties hereunder: (i) protect the environmental and architectural integrity of the Subdivision in accordance with the provisions of this Declaration. No building, fence, wall or other structure or improvement of any nature shall be placed, constructed, erected or maintained on any Lot, nor shall any exterior addition to or change or alteration therein be made until the construction plans and specifications for the same shall have been submitted to and approved in writing by the Board as to the (a) conformity and harmony of external design and location in relation to surrounding structures and topography, and (b) quality of workmanship and materials. Any plans and specifications to be submitted shall specify, in such form as the Board may reasonably require, the location upon the Lot where the improvements are to be placed and the dimensions thereof as well as appropriate information concerning the structural, mechanical, electrical and plumbing details and the nature, kind, shape, heights, color scheme and materials of the proposed improvements or alterations. (ii) The Board shall also have the right, where not otherwise set forth herein, to specify: 1. Minimum setbacks; 2. The location, heights and extent offences, walls, or other screening Spring Creek Terrace Covenants Page 7 of 26 devises; 3. The orientation of structures and landscaping on Lots with respect to streets, walks and structures on adjacent properties, however, the Board shall not require setbacks further away from the streets than any platted building line; and 4. A limited number of acceptable exterior materials and/or finishes that may be used in the construction, alteration, or repair of any improvement. Further, no person exercising any prerogative of approval or disapproval by the Committee shall incur any liability by reason of the good faith exercise thereof. (iii) Approval or disapproval by the Board or its designated representative(s) on any of the above matters shall be in writing and either conveyed in person or by registered or certified mail, return receipt requested. In the event the Board or its designated representative(s) fail to approve or disapprove such design and location within thirty (30) days after said plans and specifications have been submitted to it, then such plans and specifications shall be deemed approved (except for any required variances as provided below). The Board shall have the right, exercisable at its discretion, to grant variances to the architectural restrictions in specific instances where the Board in good faith deems that such variance does not adversely affect the architectural and environmental integrity of the Subdivision or the common scheme of the development. If any such variances are granted, no violation of the provisions of this Declaration shall be deemed to have occurred with respect to the matter for which the variance is granted; provided, however, that the granting of a variance shall not operate to waive any of the provisions of this Declaration for any purpose except as to the particular property and particular provisions hereof covered by the variance, nor shall the granting of any variance affect in any way the Owner's obligation to comply with all governmental laws and regulations affecting the Lots and with the Plat. Failure by the Board to respond within thirty (30) days to the request for a variance shall operate as a denial of the variance. (iv) No Implied Waiver or Estoppel. No action or failure to act by the Board of Directors shall constitute a waiver or estoppel with respect to future action by the Board with respect to the construction of any improvements within the Subdivision. Specifically, the approval by the Board of Directors of any such residential construction shall not be deemed a waiver of any right or an estoppel to withhold approval or consent for any similar residential construction or any similar proposals, plans, specifications or other materials submitted with respect to any other residential construction by such person or other Owner. Section 2. Duties. The Board, for the benefit of its Owners, shall have the following duties; (a) To cause to be kept a complete record of all its acts and corporate affairs. Spring Creek Terrace Covenants Page 8 of 26 I . (b) To supervise all officers, agents and employees of the Association, and to see that their duties are properly performed. (c) To execute all declarations of ownership for tax assessment purposes with regard to the Common Areas on behalf of all Owners. (d) As more fully provided in the Declaration: (i) to fix and give notice of the amount of the annual assessment against each Lot: and (ii) to foreclose the lien against any property for which assessments are not paid or to bring an action at law against the Owner personally obligated to pay the same. (e) To issue, or to cause an appropriate officer to issue, upon demand by any person, a certificate setting forth whether or not assessment has been paid. A reasonable charge may be made by the Board for the issuance of these certificates, if a certificate states an assessment has been paid, such certificate shall be conclusive evidence of such payment. (f) To protect or defend the Common Areas from loss or damage by suit or otherwise and to provide adequate reserves for replacements; (g) To make all books and records of the Association available for inspection by Owners at reasonable times and intervals; (h) To adjust the amount, collect and use any insurance proceeds to repair damage or replace lost property, and if proceeds are insufficient to repair damage or replace lost property, to access the Owners in proportionate amounts to cover the deficiency; (i) To procure and maintain liability insurance and hazard insurance on property owned by the Association; (j) To cause all officers or employees having fiscal responsibilities to be bonded, as it may deem appropriate; and (k) To improve, beautify, maintain, manage and operate the Common Areas and Common Maintenance Areas. ARTICLE IX OFFICERS AND THEIR DUTIES Section 1. Enumeration of Officers. The officers of this Association shall be a President and Vice President, who shall at all times be Members of the Board of Directors, a Secretary and a Treasurer and such other officers as the Board may from time to time by resolution create. Section 2. Election of Officers. The election of officers shall take place at the first meeting of the Board of Directors following each annual meeting of the Members. Spring Creek Terrace Covenants Page 9 of 26 Section 3. Term. The officers of the Association shall be elected annually by the Board and each shall hold office for one (1) year unless he shall sooner resign or shall be removed or otherwise disqualified to serve. Section 4. Special Appointments. The Board may elect such other officers as the affairs of the Association may require, each of whom shall hold office for such period, have such authority, and perform such duties as the Board may, from time to time determine. Section 5. Resignation and Removal. Any officer may be removed from office with or without cause by the Board. Any officer may resign at any time by giving written notice to the Board, the President or the Secretary. Such resignation shall take effect on the date of receipt of such notice or at any later time specified therein, and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it 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 the term of the officer he replaces. Section 7. Multiple Offices. The offices of Vice President, Secretary and Treasurer may be held by the same person. No person shall simultaneously 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 officers are as follows: President The President shall preside at all meetings of the Board of Directors; shall see that orders and resolutions of the Board are carried out; shall sign all leases, mortgages, deeds, contracts and other written instruments and shall co -sign all checks and promissory notes. Vice President The Vice President shall act in the place and stead of the President in the event of his absence, inability or refusal to act and shall exercise and discharge such other duties as may be required of him by the Board. Secretary The Secretary shall record the vote and keep the minutes of all meetings and proceedings of the Board and of the Members; send notice of meetings of the Board and of the Members; keep appropriate current records showing the Members of the Association together with their addresses, and shall perform such other duties as required by the Board. Treasurer The Treasurer shall receive and deposit in appropriate bank accounts all monies of the Association and shall disburse such funds as directed by resolution of the Board of Directors; shall sign all checks and promissory notes of the Association; keep proper books of account; and shall prepare an Spring Creek Terrace Covenants Page 10 of 26 annual budget and a statement of income and expenditures to be presented to the membership at its regular annual meeting, and deliver a copy of each to the Members. ARTICLE X COVENANT FOR MAINTENANCE ASSESSMENTS OR "DUES" Section 1. Creation of the Lien and Personal Obligation for Assessment. The Declarant, for each Lot within the Subdivision which shall be or thereafter become subject to the assessments hereinafter provided for, hereby covenants, and each Owner of any Lot that shall be or thereafter become assessable, by acceptance of a Deed therefore; whether or not it shall be express in the Deed or other evidence of the conveyance, is deemed to covenant and agree to pay the Association the following: (a) Annual assessments or charges; (b) Special assessments for capital improvements; and (c) Any other sums to the extent they are specifically provided for elsewhere in this instrument. Such assessments or charges are to be fixed, established and collected as hereinafter provided. These charges and assessments, together with such interest thereon and cost of collection thereof, as hereinafter provided, shall be a charge on the land and shall be secured by a continuing lien upon the Lot against which such assessments or charges are made. Each such assessment or charge, together with such interest, costs and reasonable attorney's fees shall also be and remain the personal obligation of the individual or individuals who owned the particular Lot at the time the assessment or charge fell due notwithstanding any subsequent transfer of title to such Lot. The personal obligation for delinquent assessments and charges shall not pass to successors in title unless expressly assumed by them. Section 2. Purpose of Assessments. The assessments levied by the Association shall be used exclusively for the purpose of promoting the recreation, health, safety and welfare of the residents of the Subdivision. Without limiting the foregoing, the total assessments accumulated by the Association, insofar as the same may be sufficient, shall be applied toward the payment of all taxes, insurance premiums and repair, maintenance and acquisition expenses incurred by the Association and, at the option of the Board of Directors of the Association, for any or all necessary improvements or maintenance. The judgment of the Board of Directors of the Association in establishing annual assessments, special assessments and other charges and in the expenditure of said funds shall be final and conclusive so long as said judgment is exercised in good faith. Section 3. Basis and Maximum Level of Annual Assessments. Until January 1, of the year immediately following the conveyance of the first Lot from Declarant to an Owner, the maximum annual assessment shall be One Hundred Twenty and No /100 Dollars ($120.00) per Lot from and after January 1 of the year immediately following the conveyance of the first Lot from Declarant to an Owner, the maximum annual assessment may be increased by the Board of Directors of the Association, effective January 1 of each year. In conformance with the rise, if any, in the Consumer Price index for the "All Urban Consumer" index (U.S. Average) (base year 1967 = 100) published by the Department of Labor, Washington, D.C. for the year ended the preceding June 30th or alternatively, by an amount equal to the difference between the then current assessment and the Spring Creek Terrace Covenants Page 11 of 26 projected assessment calculated by increasing the original assessment set forth herein by an amount equal to 10% compounded annually for each year from the date hereof, whichever is greater, without a vote of the Members of the Association. From and after January 1 of the year immediately following the conveyance of the first Lot by Declarant to an Owner, the maximum annual assessment may be increased above that established by the Consumer Price Index formula or the above mentioned percentage increase only by written approval of the Owners of two- thirds (2/3) of each class of members who are voting in person or by proxy, at a meeting duly called for this purpose. After consideration of current maintenance costs and future needs of the Association, the Board of Directors may fix the annual assessment at an amount not in excess of the amount approved by the Owners. Section 4. Special Assessments for Capital improvement. In addition to the annual assessment 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 part, the cost of any construction, reconstruction or unexpected repair or replacement of a particular capital improvement located upon the Common Area, easements or drainage area, including the necessary fixtures and personal property related thereto, provided that any such assessment shall have the written approval of two- thirds (2/3) of the votes of each class of Members who are voting in person or by proxy, at a meeting duly called for this purpose. Section 5. Notice of Quorum for Any Action Authorized Under Sections 3 and 4. Written notice of any meeting of Members of the Association called for the purpose of taking any action authorized under Section 3 and 4 of this Article shall be sent to all members and shall be proposed at a public place within the Subdivision not less than thirty (30) days nor more than sixty (60) days in advance of meeting. At the first such meeting called, the presence of the holding sixty percent (60 %) of all membership votes entitled to be cast in each membership class or their proxies shall constitute a quorum. If the required quorum is not present, additional meetings may be called subject to the same notice requirements and the required quorum at each subsequent meeting shall be one -half (1/2) 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 6. Rates of Assessments. Both annual and special assessments on all Lots, whether or not owned by the Declarant, must be fixed at uniform rates as follows: (a) Occupied Lots: Those Lots containing an occupied Living Unit (a Living Unit that has been initially occupied, although it may no longer be occupied) shall be assessed the full assessment as set by the Board of Directors of the Association; (b) Completed Living Unit: Those Lots containing a substantially completed but unoccupied Living Unit (that is, a Living Unit that has not been initially occupied), shall be assessed fifty percent (50 %) of the full assessment as set by the Board of Directors of the Association; and (c) Vacant Lots; Those Lots, which are vacant or upon which a residence is under construction shall not be assessed. Section 7. Date of Commencement and Determination of Annual Assessment. The annual assessment provided for herein shall commence as to all Lots on a date fixed by the Board of Directors of the Association. The first annual assessment shall be adjusted according to the Spring Creek Terrace Covenants Page 12 of 26