DRAFT COVENANTS

This instrument drafted by:

STATE OF NORTH CAROLINA
COUNTY OF MACON

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR THE MILL & RIVER CAMP AT LAKE NANTAHALA DEVELOPMENT

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS is entered into this ______ day of _________, 2006, by Hidden Springs Partners, LLC, Georgia Limited Liability Corporation, hereinafter referred to as “Declarant”;

WITNESSETH:

WHEREAS, Declarant is the owner of all lots within a subdivision known as THE MILL & RIVER CAMP AT LAKE NANTAHALA, and being that certain tract or parcel of land more particularly described by map and survey recorded on Plat Card #______, Macon County Registry; and

WHEREAS, it is in the best interest of the Declarant and to the benefit, interest and advantage of every party hereafter acquiring any of the described property that certain covenants, conditions, easements, assessments, liens and restrictions governing and regulating the use and occupancy of the property be established; and

WHEREAS, Declarant desires to provide for the preservation of the values and amenities and the desirability and attractiveness of said property, and for the continued maintenance and operation of any common areas.

NOW THEREFORE, Declarant does hereby declare that all of the property hereinabove referred shall be and is hereby subject to the following restrictions, covenants, conditions, easements, assessments and liens relating to the use and occupancy thereof, which shall be construed as covenants running with the land, which shall be binding on all parties acquiring any right, title or interest in any of the properties, and shall inure to the benefit of each owner thereof.

PROPERTIES SUBJECT TO THIS DECLARATION

The property which shall be held, transferred, sold, conveyed and occupied subject to this Declaration is located in the County of Macon, State of North Carolina, and is more particularly described as being all of that property shown on map and survey recorded on Plat Card # ________, Macon County Registry, plus all the utility and access easements as shown on the aforesaid map. The Declarant hereby subjects the heretofore described property, and all owners of portions thereof, to this Declaration and jurisdiction of the Association.

DEFINITIONS

Section 1. “Association” shall mean and refer to The Mill at Hidden Springs Homeowners’ Association, Inc. it successors and assigns.

Section 2. “Owner” shall mean and refer to the record owner, whether one or more persons or entities, of any lot which is a part of the Properties, including contract sellers, but excluding those having such interest merely as security for the performance of an obligation.

Section 3. “Properties” shall mean and refer to that certain real property hereinbefore described, and such additions thereto as may hereafter be brought within the jurisdiction of the Association.

Section 4. “Lot” shall mean and refer to any plot of land shown upon said recorded plat or amendment thereto upon which a single-family dwelling may be constructed.

Section 5. “Declarant” shall mean and refer to Hidden Springs Parnters, LLC (Developer), its successors and assigns.

Section 6. “Common Expense” shall mean and include:
(a) Expenses of the common areas;
(b) Expenses declared to be common expenses by the provisions of this Declaration or the By-Laws;
(c) Hazard, liability, or such other insurance premiums as the Declaration or the Bylaws may require the Association to purchase;
(d) Ad valorem taxes and public assessment charges lawfully levied against common areas;

COVENANTS AND RESTRICTIONS

1.All lots shall be used for singe family residential purposes only. One house per lot is permitted. Houses must be in compliance with the rules and regulations of the Macon County Health Department and further must not cause any other home or lot to become out of compliance with the Macon County Health Department rules and regulations.
2.No lot shall be used for any commercial, industrial, or other non-single family residential purposes.
3.No house trailer, mobile home, travel trailer, recreational vehicle (R/V) or other type of temporary housing shall be used as a residence on any lot. Any campers, travel trailers, R/V’s, boats, trucks used for commercial purposes, or similar vehicles which are kept or maintained on any lot shall be stored in an enclosed or screened area out of the view of other lots and roads in the Subdivision.
4.Each residence shall have a minimum of twelve hundred (1200) square feet of heated floor space if the residence is only one story. If the residence is two-story or larger or split-level, then said residence shall have a minimum of twelve hundred (1200) square feet of heated floor space on the main floor. Minimum square footage requirements shall not include areas used for decks, porches, garages or greenhouses.
5.The exterior of all buildings on each lot shall be constructed with natural materials such as wood or rock, unless otherwise agreed to by the Architectural Review Committee.
6.No individual wells are allowed.
7.Each lot owner shall be required to keep his/her lot neatly landscaped and mowed. Failure to comply with this requirement will result in the Homeowner’s Association hiring a landscape maintenance company to maintain the lot owner’s property and the lot owner will be billed for the work performed.
8.No outside toilets shall be allowed upon any lot, except as required during the construction process.
9.All septic disposal systems shall be constructed and installed in accordance with the rules and regulations of the Macon County Health Department, as amended from time to time,
10.All buildings shall have a setback of at least ten (10) feet from any side or rear lot line and at least ten (10) feet from any road right-of-way line. No structure shall be constructed on a designated easement or setback.
11.No lot or any part thereof shall be used for a junkyard or for any unsightly or obnoxious purposes.
12.All trash, garbage, and waste shall be kept in sanitary, closed receptacles, and shall be kept in an enclosed or screened area, so that the same will not be visible from other lots or roads in the subdivision.
13.No burning of household trash or garbage shall be done or permitted on any lot in the Subdivision.
14.No waste or garbage from any lot shall be permitted to enter the Nantahala River.
15.No animals may be kept and/or maintained on any lot; except that this restriction shall not prohibit the keeping of usual household pets, provided said usual household pets are at all times confined to the owner’s lot or are kept leashed. No pet may be kept and/or maintained on any lot if it makes such an amount of noise as to frequently or habitually disturb Owners of other lots.
16.No Owner of any lot shall operate motorcycles or similar vehicle or permit motorcycles or similar vehicles to be operated by those under their control or those who ought to be under their control within the boundaries of the Subdivision, except for the legitimate purpose leaving or entering the Subdivision. It is the intention of this restriction to prohibit sport riding or joy riding upon motorcycles and/or similar vehicles within the boundaries of the Subdivision.
17.No unlicensed or inoperable vehicles may be maintained or kept on any lot in the Subdivision.
18.No fuel tanks or similar storage receptacles unless they are buried underground, and in no event may the same be maintained so that they are visible from any place outside the Lot.
19.Only decorative, non-chain link type fencing will be permitted in the development. If fencing is required for housing of household pets, said fencing shall be constructed in such a manner so as to blend with the landscape and rustic nature of the property. All fences must be approved by the Architectural Review Committee prior to comencement of any construction or installation.
20.No tree having a diameter of twelve (12) inches or more measured one (1) foot above the ground shall be cut or removed from any Lot without the express prior written permission of the Architectural Review Committee, unless such removal is necessary to effect the implementation of plans already approved by the Architectural Review Committee. Hemlock trees and dead or dying trees are excepted from this restriction.
21.No permanent or temporary antennae of any kind for television, radio, short-wave or any other use may be erected, placed, maintained or located upon any Lot without prior written permission of the Architectural Review Committee, and any antennae approved by the Architectural Review Committee must be installed, painted and maintained in such a way as may be from time to time provided by the Architectural Review Committee. Small satellite dishes are allowed.
22.No outside clothesline shall be displayed on any lot.
23.No signs other than standard real estate “for sale” signs shall be allowed on any lot.

RESERVATION OF EASEMENTS

24.Declarant reserves unto itself, its successors and assigns, and reserves and grants unto the Association, a perpetual, alienable and releasable easement and right-of-way on, over, and under the ground to erect, maintain and use electric and telephone poles, and wires, cables, and conduits, sewers, water mains, and other suitable conduits and equipment for the transmission and discharge of electricity, telephone, gas, sewer and other public conveniences or utilities on, in, or over all roadway easements within the ten (10) foot wide strip immediately inside the boundary of each lot; provided, in the event of the improvement of one (1) or more lots as a unit, such easement for such purposes already begun. By reservation of said easments, the Declarant does not obligate itself or the Association to provide any utility service to any lot, except as expressly stated herein. No electric and telephone poles may be installed without prior written consent of the Declarant.

ARCHITECTURAL REVIEW COMMITTEE

25.There is hereby established for the Subdivision an Architectural Review Committee to ensure the development of the Subdivision and the improvement of the Lots therein in accordance with this Declaration, and to control the type, nature and design of all building, structures and other improvements constructed on the Property. The Declarant shall assume this obligation until such time as a Homeowners’ Association is established within the Subdivision. The Association shall then constitute, or shall have the right to apoint the members of the Architectural Review Committee, two thirds (2/3) of its members shall constitute a quorum, and shall act by majority vote and keep proper records and minutes. No principal residence or garage shall be erected, placed or altered on any lot within the Subdivision until the proposed building and plat plans showing detailed specifications, elevations, dimensions, exterior color and finish, location of improvements, driveways and parking areas shall have been specifically approved in writing by the Architectural Review Committee. In addition, no swimming pool, wall, fence, hedge used as a wall, or other structure or manmade improvement whatsoever shall be erected, placed or altered on any lot within the Subdivision until the same shall have been specifically approved in writing by the Architectural Review Committee. No land clearing, filling, grading, shrub or tree removal or landscaping shall be done on any lot within the Subdivision until plans for the same shall have been specifically approved in writing by the Architectural Review Committee. The Architectural Review Committee shall review all plans and specifications and requests to it taking into consideration harmony of exterior design, color and location in relation to other structures and lots in the Subdivision. The Architectural Review Committee shall have the authority to grant variances to the set back requirements contained hereinabove. Every Lot Owner agrees for himself, his heirs, successors, and assigns, by the acceptance of his deed, that the Architectural Review Committee shall have total authority to accept or reject any plans or requests submitted to it and that refusal or approval of plans, locations, specifications or other requests may be based by the Architectural Review Committee upon and grounds including purely aesthetic considerations. Provided, however, the Architectural Review Committee may not act arbitrarily or unreasonably, and may not approve plans or structures which do not conform to the limitations and restrictions expressly provided herein, as follows:
a)No residence or garage constructed on any lot shall have tar paper, asbestos, unfinished plywood or rough-hewn irregular edge type siding.
b)All exterior construction shall be completed within twelve (12) months after it has commenced, barring acts of nature and extraordinary events. The landscaping and grassing of each lot shall be completed within three (3) months thereafter.

All plans, specifications and other requests submitted to the Architectural Review Committee must be submitted at least twenty (20) days prior to the anticipated commencement of proposed work. All submissions to the Architectural Review Committee shall contain the name, address and phone number of any contractor or architect involved. The Architectural Review Committee shall transmit its decision to the affected Lot Owner within fifteen (15) days of receipt of it of all information required or needed to make its decision.

DECLARANT’S RESPONSIBILITIES

26.The Declarant shall install wells and distribution lines to a property line of each Lot.
27.The Declarant shall have the responsibility of constructing all roads up to a standard of a well graded, well graveled, well ditched and well drained road(s) and further maintenance thereof until such time as fifty percent (50%) of the Lots in the Subdivision have been sold. At such time, the Declarant shall not have any further responsibility with regard to the roads, and the maintenance and upkeep of said roads shall be the responsibility of the Association.

LOT OWNER’S RESPONSIBILITIES

28.To install and maintain water lines running from the residence to the property line.
29.To maintain a twelve-inch (12”) or larger drain tile on any portion of his lot where a driveway crosses or any other thing obstructs a drainage ditch.

PROPERTY OWNERS’ ASSOCIATION

30.Each Lot and each Lot Owner shall be a member of The Mill at Hidden Springs Property Owners’ Association which shall be an unincorporated association comprised of each and all of the Lot Owners, unless and until the same is incorporated, at which time it will become an incorporated property owners’ association, the members of which shall be each and all of the Lot Owners. Said Association shall be formed upon the sale of fifty percent (50%) of the lots in said Subdivision. Each Lot and each Lot Owner shall be subject to all duly adopted articles, by laws, rules and regulations, and resolutions of said Associations.

31.The Association shall have as its primary function the obligation to maintain and repair the roadways in the Subdivision after their construction by the Declarant and to provide for the payment of the common expenses as hereinabove defined. If any person damages the Subdivision roads or common properties for any reason, that person shall be responsible for paying to repair the same to its original condition. Each Lot Owner shall, before beginning of construction of a dwelling on any Lot, pay to the Association for the maintenance and repair of Subdivision roads the sum of $300, which shall be applied directly to the costs of maintenance and repair of said Subdivision roads. If construction on any Lot causes damage to the Subdivision roads in excess of $300, the Owner of such Lot shall pay to the Association such amount as is necessary to repair the road to its original condition. All roadways shall be maintained and repaired up to a standard at least as good as the same are in at the time the Association commences having responsibility for the same. The Association shall periodically, at least annually, assess each Lot Owner for his share of the costs and expenses of the roads, the maintenance responsibility for which is that of the Association. Payment of such assessments shall be due thirty (30) days after notice thereof is sent. If not paid within said thirty (30) day period, such assessments shall be deemed delinquent and shall commence bearing interest from such time at the rate of eighteen percent (18%) per annum. Any assessment levied against any Lot which so becomes delinquent shall constitute a lien upon such Lot when filed of record in the Office of Clerk of Superior Court for Macon County, North Carolina, in the manner provided thereof by Article 2, Chapter 44-A, Statutory Liens on Real Property, of the North Carolina General Statutes, or its successor statute, provided, such lien shall be subordinate to any properly recorded mortgage or deed of trust on such property in existence at the time the lien attaches. The claim of lien shall be filed in the name of the Association. The Association shall, whether or not incorporated, have the right to proceed in its own name in any court of competent jurisdiction. The Claim of lien may be foreclosed in a like manner as a mortgage on real estate under the Power of Sale under Article 2-A, Chapter 45 of the General Statutes. If any delinquent assessment is placed in the hands of any attorney for collection, there shall be added to the amount due all costs of collection, including all reasonable attorneys’ fees not to exceed fifteen percent (15%) of the outstanding balance. The lien shall include the amount of all interest, which accrues and continues to accrue upon assessment, and shall include the aforementioned costs of collection and attorney’s fees. All assessments, interest, costs and attorney’s fees shall be and constitute the personal joint and several obligations of each Lot Owner. The Association or any other Lot Owner may bring an action against the Lot Owner(s) in default to seek a money judgement for the amount of the assessments, interest, cost of collection and attorney’s fees.

MISCELLANEOUS

32.The Association shall have such other further powers as may be adopted and set forth in its by-laws as may now be in existence or may be adopted in the future, provided the Association may not supersede its limitation as to the Lots for which it may assess the Declarant.
33.In the event of a violation or breach of any of these restrictive covenants, the persons and entities entitled to enforce them or any one or more of them, shall have the right to proceed at law or in equity to compel a compliance with the terms hereof or to restrain or enjoin the violation of the terms hereof.
34.The Mill at Hidden Springs is a planned community, subject to the provisions of the North Carolina Planned Community Act.

IN WITNESS WHEREOF of the Declarant has caused this instrument to be signed in its corporate name by its duly authorized officers and its seal to be hereunto affixed by the authority of its Members, the day and year first above written.

HIDDEN SPRINGS PARTNERS, LLC

_______________________________________
By:

(CORPORATE SEAL)

STATE OF___________________

COUNTY OF___________________

I, a Notary Public of the County and State aforesaid certify that ____________________
Personally appeared before me this day and acknowledged that he is a member of Rainbow Springs Campground, LLC, a Limited Liability Corporation, and that by authority duly given and as the agent of the corporation the foregoing instrument was signed in its name by its member, sealed with its corporate seal, and attested by him as its member. Witness my hand and official seal, this the _________ day of ______________, 2006.

____________________________________
Notary Public

My Commission Expires:_______________