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Article X - Construction of Improvements

Phase 1, Parcel 1 of Parcel Map No. 79-756
City of Orange, County of Orange
State of California

Article X
Construction of Improvements

Section 1. Reconstruction With Election of Owners
In the event of partial or total destruction of the improvements in the project, a special meeting shall be called for the purpose of having the Association members vote on whether or not to repair the damage. Said meeting shall be called within forty-five (45) days of said destruction. If reconstruction is to take place, as approved by seventy-five (75%) percent of the owners, the Board shall be required to execute, acknowledge, file and record, not later than one hundred twenty (120) days from the date of said destruction, a certificate declaring the intention of the owners to rebuild.

Section 2. Reconstruction Assessments
If seventy-five (75%) percent of the owners determine to rebuild, each owner shall be obligated to contribute such funds as shall be necessary to pay his proportionate share of the reconstruction costs over and above the insurance proceeds and the proportionate share of each owner shall be the same as his proportionate interest in the Common Area. In the event of failure or refusal by any owner to pay his proportionate share, after notice to him, should such failure or refusal continue for a period of sixty (60) days, the Board may levy a special assessment against the owner which may be enforced under the lien provisions contained in this Declaration.

Section 3. Obligation of the Board
If seventy-five (75%) percent of the owners determine to rebuild, the Board shall obtain bids from at least two (2) reputable contractors and shall award the work of construction to the lowest responsible bidder. The Board shall have authority to enter into a written contract with the contractor for such reconstruction work and the insurance proceeds held by the Board shall be distributed to the contractor according to the terms of the contract. It shall be the obligation of the Board to take all steps necessary to insure the commencement and completion of the reconstruction at the earliest possible time.

Section 4. Determination Not to Rebuild
If the vote of seventy-five (75%) percent of the owners shall be insufficient to authorize rebuilding:

(a) Subject to the rights of mortgages, any insurance proceeds available for such rebuilding shall be distributed among the owners and their individual lenders by the Board, according to the fair market value of each condominium in relation to the fair market value of all condominiums. If seventy-five (75%) percent of the owners elect to rebuild, the Board shall file and record a certificate as provided in Section 1 hereinabove.

(b) The Board shall have the duty, within one hundred twenty (120) days of the date of such loss to execute, acknowledge and record a certificate setting forth the determination of the owners not to rebuild, and shall promptly cause to be prepared and filed, such revised maps and other documents as may be necessary to show the conversion of the project to the status of unimproved land or to show the elimination of one or more of the units as a result of such destruction.

Section 5. Revival of Right to Partition Condominium
Upon the recordation of such certificate, the right of any owner to partition his condominium through legal action shall forthwith revive.

Section 6. Arbitration of Disputes
In the event of a dispute among the owners with regard to the provisions of this Article X, any owner may cause the same to be referred to arbitration in accordance with the then prevailing rules of the American Arbitration Association. In the event of arbitration, notice thereof shall be given to members of the Board and all owners as promptly as possible after reference to arbitration is made, giving all owners an opportunity to appear in such arbitration proceedings. The decision of such arbitrator in this matter shall be final and conclusive on all owners. The arbitrator may include in his decision, an award for costs and/or attorney's fees against any one or more of the parties to the arbitration.

Section 7. Condemnation
In the event an action for condemnation is proposed or commenced by any governmental body having the right of eminent domain, the following provisions shall apply: if such action or proposed action is for the condemnation of the entire project, or a portion thereof, upon unanimous consent of all owners, the property may be sold to such government body prior to judgment and the proceeds of such sale shall be distributed to all owners and their lenders, as their respective interests, may appear, based on each owners' interest in the Common Area. Lacking such unanimous consent, any consequent compensation for the taking shall be distributed to the owners and their lenders, as their respective interests may appear, according to the proportionate interest in the property taken by the government body.




For URGENT/EMERGENCY MAINTENANCE (Flooding, sewage, roof collapse, etc.)
Contact: Huntington West Properties
@ 714-891-1522, 24 hours a day, 7 days a week. After hours, press the number "4" to be connected to an operator.

DIAL 911 if you have a life threatening situation, need fire, medical or police assistance.

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