ARTICLE IX GENERAL ARCHITECTURAL CONTROLS

Section 2.  No buildings, construction, landscaping, parking, fence, wall or other improvements shall be placed, constructed, erected, repaired, restored, reconstructed, altered, remodeled, added to or maintained on any Lot or area until building and site plans and specifications, and such other information as the Committee may reasonably require, including, without being limited to colors, building materials and models, have been submitted to, and approved by a majority of the Architectural Review Committee in writing; nor may the same be commenced until the Architectural Review Committee shall have issued a permit allowing such improvements.

Section 3.  The Architectural Review Committee shall have the authority to reject materials, designs submitted with plans, or the plans themselves if they are not compatible with, or are inappropriate for the rest of the subdivision or inconsistent with these Covenants.  Variance requests will be considered on a case-by-case basis by the Architectural Review Committee.

Section 4.  All improvements, construction, reconstruction, alterations, or remodeling requiring the approval of the Architectural Review Committee must be completed in substantial compliance with the plans and specifications initially approved by the Committee.  All such construction must be completed within one (1) year from the date construction is commenced or according to a schedule approved by the Architectural Review Committee.

Section 5.  The Architectural Review Committee shall have the power, authority, standing and right to enforce these covenants in any court or law or equity when it reasonably believes the same have been violated, and shall have the authority to revoke or suspend building permits and/or order suspension or cessation of any construction or work in violation of these covenants or of any permit issued by the Committee.

Section 6.  The Architectural Review Committee may require reasonable fees to be paid with the filing of plans and specifications and the issuance of building permits.

Section 7.  The Architectural Review Committee or the individual members thereof may not be held liable by any person for any damages which may result from Committee action taken pursuant to these covenants, including but not by way of limitation, damages which may result from correction, amendment, change or rejection of plans, the issuance of building permits, or any delays associated with such action on the part of the Committee.

ARTICLE X - USE RESTRICTIONS

Section 1.  No residence erected on the real property which is the subject of this Declaration shall be used for any commercial endeavor, day care, or other business type activity.  Cottage industry type activities are allowed as long as no employees outside of the immediate family are employed on the residential properties.  It is the express intent of the Declarant that the real property which is the subject of this Declaration be devoted to creating the River Rock West, River Rock East and River Rock North neighborhoods consisting of various use areas and residential units and preserving within the community so created a quiet, peaceful, harmonious existence between the uses and residents.

Within the R2-Medium Density Residential areas, no more than 2 dogs or 2 cats are allowed per dwelling unit.  Dog kennels are allowed as stated in provision VIII A, Section 15 and provision  VIII, E, Section 16.  Dog kennels or fenced dogs are only allowed if the kennels or yard areas are maintained free of odor and persistent barking is expressly prohibited.  Chained dogs are expressly prohibited.

Within the RMH area - River Rock North (manufactured homes on rental spaces) no more than 2 dogs or 2 cats are allowed per dwelling unit and are limited in size to a maximum of 14" at the shoulders.

If any stray dogs or cats are caught and restrained or any stray dogs or cats threaten or endanger or injure residents, guests, invitees, other animals or property within the River Rock Community, the owners of such an animal or animals are subject to the following penalties which will be strictly enforced by the Property Owners Association:

• First Offense                   $50.00
• Second Offense            $100.00
• Third Offense                  $150.00

Any further offenses will result in the permanent exclusion of such animals from the River Rock Community.

Section 3.  Storage of Equipment.  No residential lot shall be used for the storage or any inoperable vehicle, machinery or equipment.  No residential lot shall be used for storage of any articles, vehicles, equipment or other personal property of any quantity in excess of the immediate needs and personal use of the Owner of a Lot or the occupants thereof as the case may be.  Storage of materials, supplies, equipment, vehicles, tools or trade items is expressly prohibited on residential lots.

Section 4.  Commercial Vehicles.  No residential lot shall be used for the parking or storage of any commercial trucks, large commercial vehicles or other heavy equipment, except as may be necessary during reasonable periods of construction on individual lots.

Section 5.  Recreational Equipment. Except as allowed by this Covenant, No residential lots, or drivewaysshall be used to park campers, trailers, motor homes, boats, and all other recreational equipment and the like.  In no event shall such equipment be parked on roads.  Such equipment and vehicles must be enclosed in a garage or otherwise screened areasor on a well maintained gravel, concrete or asphalt parking apron constructed directly adjacent (next to) to  the garage/home or other location approved by the architectural review committee.Screening design must be approved by the Architectural Review Committee.

The Owner of any Lot that is permanently(preparation for trips, cleaning and minor repair excluded - not to exceed 7 days) storing any Recreational Equipment in violation of this covenant will be subject to the following fines if the violation is not cured within 48 hours of receiving a certified mail notice from the Association:

• First Offense:            $50.00 per day that the equipment remains stored in violation.
• Second Offense: $100.00 per day that the equipment remains stored in violation.
• Third Offense and thereafter: $150.00 per day that the equipment remains stored in violation

All Powers given the Association in Article IV, Section 7, apply to any assessments levied against a property for the purposes of this section.

Section 6.  Offensive Activity.

a. No noxious or offensive activity shall be carried on upon any portion of the above described property, nor shall anything be done thereon which may be, or may become, an annoyance to the neighborhood.

b. Except for the specific dates of July 3,4, and 5 and only between the hours of 5 p.m and 10 p.m. on those dates, no fireworks of any kind may be discharged or stored on the above described property.  Any owner that allows any resident, guest or invitee of property which is the subject of this declaration to discharge or store fireworks on dates and/or times other than those listed above will be assessed $100.00 per each infraction.  All Powers given the Association in Article IV, Section 7, apply to any assessments levied against a property for the purposes of this section.

c. No firearms shall be discharged on the above described property

d. No cutting of firewood shall be allowed on site.

Any violation of County ordinances, zoning or other regulations shall be a violation of these covenants and can be enforced by the Association or individual lot owners.

Section 7.  Waterways/Ponds/Other Water Areas.  The Owner or Occupant of any lot shall at all times conduct its use and activities in a manner that will preserve the integrity of water areas within the Common Area including the prevention of any degradation of water quality, any reduction or increase in the flow of said water areas, any damage to the stream bed or banks of said water areas. The Owner or Occupant of any lot shall not conduct or permit the conduct of the following activities:

a. The discharge of any liquid, solid, or gas into water areas;

b. The use of any fertilizers or herbicides other than those specifically approved by Declarant; or the polluting of water areas;

c. Any refuse encouraging activities.

Section 8. Street Parking. All parking for owners of residential properties is to be provided within the residential lots.  Street parking is allowed for guests, deliveries or short temporary periods but not overnight parking by residents.

The Owner of any Lot zoned R-2, or R-MH (detached single family, duplex units, manufactured homes) that allows a vehicle of any resident of the Lot to be parked on the street overnight shall be subject to the following assessments if the vehicle continues to be parked on the street following a notice of violation from the Association:

• First Offense:                                          $10.00
• Second Offense:                                     $15.00
• Third Offense:                                     $25.00
• Fourth Offense:                                    $50.00
• Fifth Offense & Thereafter:               $100.00

All Powers given the Association in Article IV, Section 7, apply to any assessments levied against a property for the purposes of this section.

ARTICLE XI - GENERAL PROVISIONS

Section 1.  Effects of Covenants on Mortgage.  A breach of any of the foregoing provisions, conditions, restrictions or covenants shall not defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value on any Lot, or portion of any lot, and any improvements thereon, but said provisions, conditions, restrictions and covenants shall be binding upon and effective against any Owner thereof whose title thereto was acquired by foreclosure, trustee sale or otherwise.

Section 2.  Incorporation by Reference.  In any conveyance of the lands covered hereby, it shall be sufficient to insert a provision therein to the effect that the conveyance is subject to the restrictions and covenants contained in this document, without setting forth such restrictions and covenants verbatim or in substance in such conveyance.

Section 3.  Enforcement.   Enforcement of these covenants shall be by procedure of law or in equity against any person or persons violating or attempting to violate any covenants, and the legal proceedings may be either to restrain the violation of the covenants or to recover damages, or both.  Each person who has been found by a court of competent jurisdiction to have violated one or more of these covenants shall be liable for all attorneys fees and costs incurred in connection with the litigation.  The failure of any Owner or Owners of any lot to enforce any of the restrictions set forth herein shall be personally binding upon any person, persons or corporation, only with respect to breaches committed during its, his or their ownership of or title to any of said tracts and any part thereof.

Section 4.  Severability.  Invalidation of any of these covenants by a judgment or a court order shall in no way affect any of the other provisions, but they shall remain in full force and effect.

Section 5.  Amendment.  The covenants and restrictions of this Declaration shall run with and bind the land for a term of twenty (20) 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 the Owners of not less than sixty percent (60%) of the lots, each lot being entitled to one (1) vote.  The Declarant at their discretion will retain control of the River Rock West Property Owners Association and River Rock East Property Owners Association until 95% of the lots are sold or until year 2007 or upon relinquishing such responsibility to a board assigned by the Declarant.

Section 6.  Constructive Acceptance.  Every person or entity who now or hereafter owns, occupies or acquires any right, title or interest in or to any portion of the Property is and shall be conclusively deemed to have consented and agreed to every covenant, condition and restriction contained herein, whether or not any reference to this Declaration is contained in the instrument by which such person acquired an interest in the Property.

Section 7.  Notices; Documents; Delivery.  Any notice or other document permitted or required by the River Rock Covenants to be delivered either personally or by mail.  If delivery is made by mail, it shall be deemed to have been delivered twenty-four (24) hours after a copy of same has been deposited in the United States mail, postage prepaid, addressed as follows: If to the Association or the Architectural Review Committee, at the registered office for the Association; if to an Owner, then at any lot within River Rock owned by the Owner; if to the Declarant at 4135 Valley Commons Drive, Suite A, Bozeman, Montana 59718; provided, however, that any such address may be changed from time to time by an Owner, by the Architectural Review Committee, or by Declarant by notice in writing, delivered to Association member.

Section 8.  Waiver.  Neither Declarant or the Association nor their successors or assigns shall be liable to any Owner or Occupant of the Property by reason of any mistake in judgment, negligence, nonfeasance, action or inaction or for the enforcement or failure to enforce any provision of this Declaration.  Every Owner or Occupant of any said property by acquiring its interest therein agrees that it will not bring any action or suit against Declarant and/or the Association to recover any such damages or to seek equitable relief because of same.

Section 9.  Annexation.  Additional residential property and common area may be annexed to the Property by Declarant at any time, provided only that all of such additional property and property owners shall be subject to these and other applicable Covenants.

Section 10. Capital Facilities Fee.  The owner of any lot by acceptance of a Contract of Sale or a Deed therefore, whether or not it shall be so expressed in such Deed or a Contract, covenants and agrees to pay as part of the assessments of the River Rock Property Owners Association (Association) a sum designated for the Capital Facilities Fee to be used for the purpose of paying for the original cost for engineering and installation of initial infrastructure items including the Water and Sewer System.  The Capital Facilities Fee shall commence on the 4th day of May 2001, or sooner, from an assessment on the capital facilities on all River Rock Subdivision units of any nature or kind as follows:

a.  Five Dollars ($5.00) per month per single-family residence and Five Dollars ($5.00) on each unit contained in any multi-family residential complex with four family units or less plus an increase of two percent (2%) per year commencing on January 1, 2001.

b.  Three Dollars ($3.00) per month per unit in any multi-family residential complex with more than four family residential units including apartments, condominiums or other large type occupancy units plus an increase of two percent (2%) per year commencing on January 1, 2001.

c.  Audit of all fees on which the above Capital Facilities Fees are to be paid is based upon the records and plats on file and of record in the office of  County Clerk and Records, Gallatin County, Montana and upon the records of the River Rock County Water and Sewer District.

d.  The Capital Facilities Fee for each unit shall commence on the first day of the month following the month a unit is hooked up to the water and sewer system, whether or not the unit is occupied, and shall continue until sufficient fees have been paid by the Association to pay the balance owing pursuant to (e) following.

e.  The assessment for and payment of the Capital Facilities Fee shall continue until the sum of Seven Hundred Thousand Dollars ($700,000.00) is paid to Golden Junction Properties, LTD., Co. (Golden Junction), or thirty (30) years from May 4, 2001, at which time the Capital Facilities Fee assessment shall terminate and the balance of the Seven Hundred Thousand Dollar ($700,000.00) Capital Facilities Fee not previously assessed or required to be assessed, if any, shall be canceled all as contained in that certain Revision of Capital Facilities Fee Agreement, dated April _____, 2002.

f.   The Capital Facilities Fees set forth in (a,b,c) above shall be reduced fifty percent (50%) at such time as that Promissory Note in the original amount of Two Million Five Hundred Thousand Dollars ($2,500,000.00) owing by Valley Meadows, LLC to Golden Junction, dated December 29, 1997, and due December 29, 2002,  has been satisfied and paid in full.

Example: On January 1, 2001 the monthly assessment for a single-family residence in a. shall be reduced from $5.20 to $2.60.  The monthly assessment for four or more multi-family residence complexes shall be reduced from $3.12 to $1.56.

This reduction of fifty percent (50%) shall not apply to the assessment of the fees described below in subparagraph g. which immediately follows this subparagraph f.

g.  All non-residential buildings of any kind used for commercial, professional, organizational, nonprofit associations,  federal, state and local government agencies, including, but not limited to apartments, condominium units, stores, gas stations, schools, fire stations, and other buildings not used for residential purposes are to be assessed a commercial Capital Facilities Fee of Ten Dollars ($10.00) per month per unit, commencing one month after hook up to the unit for each building or unit within a building which has a separate sewer and water hook up .  However, if the usage for a building or unit exceeds twice the average residential usage for a residential unit, then the Capital Facilities Fee shall be based upon the following formula: Base Rate for residential property in effect (the ABase Rate@ which is currently $5.20 per month) x Usage/Average Single-Family Unit Water Usage, where AUsage@ is the monthly water consumption per non-residential building or unit for the particular use and where AAverage Single-Family Unit Water Usage@ is the average water consumption by a single-family household in the subdivision and where a unit is a building or space in a building which has a separate hook up to the water and sewer system.  In no event, shall the Capital Facilities Fee for non-residential units described above in this subparagraph g. be less than Ten Dollars ($10.00) per non- residential unit.  The reduction described in the immediately preceding subparagraph f. shall not apply to the facilities fees described in this subparagraph g. for non-residential buildings.

The water usage for each non-residential building or unit shall be reviewed and adjusted every six (6) months for usage by the River Rock Property Owners Association and a written report shall be made to Golden Junction Properties, LTD. Co. each six (6) months setting forth the usage per non-residential building or unit as compared with the average single-family unit water usage and any adjustments of the Capital Facilities Fee.

h.  All Capital Facilities Fees described above on all types of residential and non- residential usage will each be increased by two percent (2%) every year commencing on January 1, 2001 and the first day of each year thereafter until paid in full.

i.    The payments of the Capital Facilities Fee shall be paid as follows:

(i)  By the Association to Golden Junction Properties, LTD. Co. by the 15th of each month following the month a unit is hooked up to the sewer and water system, regardless of whether the unit is occupied.

(ii)  The payments will include a Capital Facilities Fee for all connected dwellings, buildings and units of any nature or kind within the River Rock Subdivision whether or not collection of such fees have been received by  the Association from its members.

(iii)  Except for the permissible reductions described herein, under no circumstances are the Capital Facilities Fees described above to be altered, changed or reduced until the remaining Seven Hundred Thousand Dollars ($700,000.00) Capital Facilities Fee is satisfied or paid in full, provided however, if there is a balance of owing on the Seven Hundred Thousand Dollars ($700,000.00) after payment to Turner of all assessments and payments due Turner under the terms of this Agreement at the end of thirty (30) years, such balance is canceled.

j.  Reporting on the Capital Facilities Fees will include a quarterly listing of all units, residences, multi-family residences, commercial buildings and other non-residential units, and all other buildings or units connected to the water or sewer systems designated by lot number and address and the assessment on each such unit.  At six (6) month intervals calculation will be furnished Golden Junction Properties, LTD. Co. of total number of single-family and multi-family units on the River Rock Water and Sewer System, together with their total usage, and the total number and usage of the non-residential buildings and units, and the computation for computing price of non-residential service described above for adjusting the six (6) month rates for non-residential rates.  Books and records of the River Rock Property Owners Association will be available during normal business hours to Golden Junction Properties, LTD. Co. or its agent on three (3) day notice furnished in writing to the offices of the Property Owners Association.

k. Late payment or no payment of monthly Capital Facilities Fees by River Rock Property Owners Association shall bear the highest rate of interest allowed by the State of Montana (fifteen percent (15%) per annum) if the Association fails to make any payment within ten (10) days after a written demand letter is mailed or personally delivered to the Association.

l. In the event that the Association fails to deliver to Golden Junction Properties, LTD. Co. the reports specified in f. above when due, and in the event said reports are not delivered to Golden Junction Properties, LTD.  Co. within ten (10) days after written notice of a late report is delivered to the Association, a Twenty-Five Dollar ($25.00) per day late fee shall be paid by the Association to Golden Junction Properties, LTD. Co.  Such late fees shall constitute a lien upon the lands of the Association within the subdivision if not paid.

m. The fees stated herein shall be collected by the Association or other designated agent and shall be paid to the Golden Junction Properties, LTD., Co. until the obligation owing to it is paid in full.

n.  If a lot owner, unit owner, or building owner fails to timely pay the capital facilities fee assessment,  the amounts owing, plus the interest thereon, and costs of collection shall be a lien upon such real estate interest owned by such owner in River Rock Subdivision upon which the assessment is assessed and may be collected and enforced as set forth in the Covenants as to other assessment liens. 

o.  The provisions of this amendment are intended to and do provide for the general health and welfare of the residents and inhabitants of the real property which is the subject of this Amendment.

p.  The provisions set forth above regarding capital improvements fee, obligations, the assessment and lien and calculation thereof may not be modified, amended or eliminated by River Rock Property Owners Association or the lot owners, by amendment, vote, or otherwise without the express written consent of Golden Junction Properties, LTD. Co. recorded with the Gallatin County Clerk and Recorder.

The Board of Directors is authorized and directed to ratify, approve, and agree to on behalf of the Association the terms, conditions, and provisions of the Revision of Capital Facilities Fee Agreement, dated April __, 2002.

Under this Amendment all Capital Facilities Fees, including the assessment, billing, payment, supervision, management, and extensive reporting to Golden Junction Properties, LTD, Co. shall  become the obligation of River Rock Property Owners Association. 

The undersigned hereby ratify and affirm all of the covenants and amendments thereto as herein set forth above except where inconsistent with the terms and conditions contained and set forth in this Amendment.  The undersigned are vested with the power and authority to enter into and execute this Amendment pursuant to Article XI, Section 5 of the First Amended Declaration of Covenants and Restrictions for River Rock, Gallatin County, Montana, dated July 16, 1999, and executed on the 4th day of August, 1999 and pursuant to all amendments thereto.

3.  That the covenants and conditions contained and set forth herein shall run with and bind the lands described in the covenants and amendments above-referenced and any and all lands, lots or units added thereto in the future.

4.  The undersigned hereby certify that the Amendment was adopted by not less than sixty percent (60%) of the Owners of lots of River Rock Subdivision, each lot being entitled to one vote, as required by Article XI Section 5 of the First Amended Declaration of Covenants, Conditions and Restrictions for River Rock Subdivision.

Previous Page