AMENDED AND RESTATED DECLARATION OF PROTECTIVE COVENANTS
EL RANCHO FLORIDA SUBDIVISION

La Plata County, Colorado (Units #1 and #2 Combined)


The El Rancho Florida Homeowners’ Association, being the duly recorded and regulatory body

for the El Rancho Florida Subdivision, Units #1 and #2 combined, according to the plats thereof filed for record in the office of the County Clerk of La Plata County, Colorado, and being a democratically representative body of the Subdivision land owners desire to:

* Ensure harmonious relationships among its residents,

* Protect and enhance the real property value,

* Conserve the natural beauty,

* Govern the Adjudicated Water from the Pioneer Ditch Company and provide for the maintenance, upkeep and regulation of the ditch system,

* Protect the rural character of the Subdivision and

* Act for the benefit of all present and successive owners of any or all of said properties.

Therefore, the owners of lots in El Ranch Florida Subdivision, Unit #1 and #2 do hereby declare this combined Subdivision subject to the following Covenants and Restrictions, amending the Declaration of Covenants previously filed with the La Plata County Clerk on March 18, 1992 (instrument #624393), to wit:

A. THE HOMEOWNERS ASSOCIATION

A - 1 Amended and Restated Document.

This instrument, entitled the Declaration of Protective Covenants for the El Rancho Florida Subdivision, hereinafter referred to as the “Covenants”, will be the entire Covenants and Restrictions for all of the El Rancho Florida Subdivision, Units #1 and #2, in La Plata County, Colorado, hereinafter referred to as the “Subdivision”, and will supercede and replace any and all previous Covenants and Restrictions of said Subdivision.

A - 2 Responsibility and Authority.

The El Rancho Florida Homeowners Association, hereinafter referred to as the

“Association”, through its Board of Directors, will be the primary authority and regulatory body of these Covenants. The Association will have the responsibility to enforce these Covenants and it will have the authority to assess property owners for the cost of maintaining the Association and carrying out its responsibilities.

A - 3 Rights and Obligations.

Any person or entity who owns the title in fee to any lot in the Subdivision will become a

Member of the Association, hereinafter referred to as “Member”. Said Member will be governed by these Covenants, the By-Laws and the Articles of Incorporation, and will have the same rights,

privileges, obligations and responsibilities as all other Members, including the obligation to pay

general and special assessments as designated by these Covenants.

A - 4 Single Vote.

Multiple owners in any Lot will be deemed to be a single Member for voting purposes.

Each Member will have only one vote per lot owned.

A - 5 Severability.

All rights and privileges granted, and all restrictions and responsibilities imposed by these Covenants will run and attach to each Lot and will be binding upon every Member.

B AUTHORITY, ASSESSMENTS AND LIENS

B - 1 Creation of Lien and Personal Obligation of Assessments.

Each lot owner by acceptance of a Deed therefore, whether or not it will be so expressed in such Deed, is deemed to Covenant and agrees to pay to the Association pursuant to the terms and conditions contained herein the following:

(1) Annual Assessments or dues,

(2) Special Assessments for subdivision maintenance,

(3 )Special Assessments for the creation and maintenance of a reserve fund, and

(4) Special Assessments for Capital Improvements.

Said assessments will be established and collected as herein provided. These Assessments together with interest at the rate defined as the “Federal Reserve prime rate plus 10%”, administrative costs, and reasonable attorney fees will be a charge on the land and will be made a continuing LIEN upon the property against which each such assessment is made. These assessments will also be a personal obligation of the owner of such property at the time when the assessment falls due. The amount of the assessment plus penalties will be paid at the time of sale or transfer in closing.

B - 2 Purpose of Assessments.

The Assessments levied will be used to enforce these Covenants, fund maintenance needs, make capital improvements to subdivision properties, maintain a reserve fund, and to promote the health, safety, and welfare of the residents of the Subdivision.

B - 3 Amount of Annual Assessment.

The annual assessment will be set by the Board. The Annual assessment may be increased each year by the Board of Directors but not by more than 10% above the assessment for the previous year. The Annual Assessment may be increased and any Special Assessments may be levied upon the membership by a vote of the majority of the quorum of the Members who are voting at the annual meeting or at a special meeting of the Association.

B - 4 Notice of Meetings.

Written notice of all regular and special meetings of the Association requiring action of the membership will be sent to all Members at least 30 days in advance of said meetings. Said notice will include a proxy form. Decisions of the Association shall be made by a majority vote of the Members voting by person and by proxy.

B - 5 Rate of Assessment and Due Date.

The Annual Dues Assessment will be fixed at a uniform rate for all lots. The annual assessments will commence on the 1st day of January of each year. The assessments will be levied on the 1st day of December.

B - 6 Non Payment and Remedies.

If any assessment is not paid within thirty days, a late penalty of 10% of the assessment will be added. The assessment will also accrue interest at the rate of 1%/month. The Association may file a lien on the real property. The Association may bring an action at law against the owner personally obligated to pay the same, or may foreclose the lien against the property in the manner provided by Colorado law for the foreclosure of mortgages on real property, or both. In addition, the Association shall be entitled to reimbursement of all costs associated with any litigation and reasonable attorney fees incurred in any collection proceedings. No owner may waive or otherwise escape liability for the assessments provided herein by non-use of services or abandonment of their lot. No owner will escape or waive any liability for these assessments.

A list of all Delinquent assessments will be published annually in conjunction with the notice of the Annual Meeting.

B - 7 Subordination of the Lien to Mortgages

The Lien of any Assessments provided herein will be subordinate to the Lien of any First Mortgage. The sale or transfer of any lot will not extinguish said Lien. No sale or transfer shall relieve such new lot owner from liability for any assessment thereafter becoming due or for the lien thereof nor shall the previous owner be released from personal liability for the unpaid assessment.

C. ENFORCEMENT

C - 1 Authority to Collect Assessments.

The Board of Directors will have the authority and responsibility to collect assessments and to enforce these Covenants.

C - 2 Rights and Duties of Members.

If any lot owner or resident willfully violates or knowingly allows a violation of these Covenants, any Member will have the right and duty to report said violation to the Board of Directors. Said alleged violations will be substantiated by the Board prior to the commencement of the notification process.

C - 3 Notification of Violation.

In the event any provision of these Covenants is violated, the offending party will be notified in writing by the Board of Directors of said violation. Said violation will be corrected

by the offending party within 30 days of notification.

C - 4 Remedy by the Board of Directors

In the event the violation continues, the Board may remedy the situation and assess the lot owner for the cost of such remedy. The Board may take any and all actions that are deemed necessary to correct said violation(s) including but not limited to the consideration of any variance requests, the levying of fines and any legal action deemed necessary. If said remedies are necessary, access to the violators property including ingress and egress will not be denied. Such access will not be deemed a trespass.

If the Board is unable to remedy the situation then enforcement may be by any proceeding at law or in equity, and the Board shall be entitled to seek an order to restrain or correct such violation and to be awarded and recover from the offending party all damages arising or resulting from said violation, including all costs, expenses and reasonable attorney fees incurred in connection with remedying the violation, bringing the lot owner into compliance,

and /or otherwise acting to enforce these Covenants.

C - 5 Schedule of Fines

Fines levied by the Board of Directors shall not be less than $10 per day and not more than $100 per day per violation. The notice of said fines shall be made by Certified Mail. Said fines will be levied 7 days from the date that the notice is mailed.

C - 6 Relief from Fines

The Board may grant relief for any portion of those fines levied.

C - 7 Remedy by Members of the Association

If reasonable and appropriate action is not taken by the Board, then any Member will have the right by appropriate legal action to restrain such violation and to recover damages therefore from the offending party for the costs associated with remedying the violation.

C - 8 Waiver of Rights

Failure of the Association or of any Member to enforce any provision of these Covenants will in no event be deemed a waiver of the right to do so in the future.

C - 9 Validation of Covenants

The invalidation of any one of more of the provisions of these Covenants as applied to any particular circumstances by any court will not invalidate that provision as applied in other circumstances, nor will it affect the remainder of these Covenants, and they will remain in full

force and effect.

C - 10 Public Notification of Violations

Violations of these Covenants and the pending remedies may be publicly noticed as deemed necessary by the Board.

D. USE OF LOTS

D - 1 Definition of Use

All lots in the Subdivision will be known, described and used as residential for single family dwellings only. A single family is defined as the owners and the owners parents, siblings and children. All owners must be 21 years of age.

D - 2 Rentals

All rentals will be to no more than a single family.

D - 3 Business Use of Lots

No lot or building in the Subdivision will be used for any business or commercial

purposes, except where:

(1) there are no frequent walk-in customers,

(2) there are no outside signs,

( 3) there are no noise or other noxious activities that may disturb neighbors,

(4) there is no frequent heavy truck traffic,

(5) there is no outside storage of inventories and,

(6) there is no storage of business related vehicles, equipment or machinery that would create an eye sore to the community.

D - 4 Annoyances

No activity will be carried out on upon any lot, nor will anything else be done thereon which may become an annoyance or nuisance to the neighborhood.

D - 5 Division of Existing Lots.

No lot will be further subdivided creating a new parcel. The number of lots in the subdivision is presently 133. The minimum size of lots within the subdivision is 3 acres.

D - 6 Lot Boundaries.

The lot boundaries between adjacent lots may be changed by written documentation approved by the lot owners directly effected by the change and the Board of Directors. Said change will be recorded with La Plata County.

D - 7 Fuel Tanks.

Fuel tanks will meet all County, State, EPA and NFPA standards and shall be subject

to approval by the Board. All fuel tanks shall have a secondary containment system and shall meet EPA containment standards. Propane tanks are not defined as “fuel tanks”. No hazardous chemicals may be stored on any lot except for normally used house and garden chemicals. Buried fuel tanks are prohibited.

D - 8 Energy Exploration or Extraction.

No lot shall be used for oil, gas, coal or other mineral exploration or extraction.

E. FOLIAGE

E - 1 Precluded Flora.

Noxious vegetation as defined by La Plata County will not be allowed.

E - 2 Removal of Existing Trees

No more than 10% of the existing trees may be removed from lots. This does not apply to the removal of vegetation for construction, Fire Protection or natural infestations.

E - 3 Infestation of Trees.

All trees that become infected by insects or disease will be treated or removed to

prevent the spread of said infestation. All dead trees shall be removed as a precaution against fire.

E - 4 Noxious Weeds

Noxious weeds will be treated or removed to prevent the spread of said condition. The treatment of said weeds shall conform to the guidelines of the La Plata County Weed Management Office.

E - 5 Fire Protection.

Any cutting of naturally occurring vegetation must be for the purpose of thinning underbrush and establishing a defensible space around structures for fire protection and must conform to the guidelines established by the Colorado State Forest Service.

F. DWELLINGS AND OUT BUILDING

F - 1 Residential Structures

No residential structure will be erected, altered, placed, used or remain on any building lot other than the one detached single family dwelling, not to exceed 2 ½ stories in height, and attached or detached garages or carports for not more than four cars. However, this will not prohibit the construction, alteration or use of reasonable and necessary out buildings. All primary residential structures shall be a minimum of 1500 square feet in area.

F - 2 Building Set-backs

No building shall be located on any lot nearer than seventy five (75) feet from the front lot line nor nearer than fifty (50) feet from any other lot line.

F - 3 Modular Homes.

New modular homes may be allowed subject to Board review and approval. All modular homes will be a minimum 1,500 square feet in area and shall be placed on permanent foundations.

F - 4 Mobile Homes.

Mobile homes are prohibited.

F - 5 Plan Review.

Plans for all construction will be reviewed and approved by the Board prior to the commencement of construction. Said plans shall include the site plan, the architectural design and the plan for the outside finish/building materials. The Board review will ensure compatibility with the subdivision building standards. Said review, approval or denial shall be granted within a period of not more than two weeks from the time the plans are submitted.

F - 6 Temporary Residences

Recreation vehicles may be used as a temporary residence during the construction of the primary residence for no longer than 12 months.

F - 7 Removal of Destroyed Property

All buildings that have been destroyed by any natural disaster, or that have been deemed a safety hazard shall be removed from the property or repaired within 6 months after notification by the Board.

G. CONSTRUCTION

G - 1 Completion

The outside finish of all structures will be completed within 12 months after the commencement of construction..

G - 2 Construction Debris

All trash and construction debris will be kept in appropriate containers and regularly removed from the lot during construction. Natural or compatible landscaping will be restored to the lot within six months of completion of the project.

H. SANITARY SYSTEMS

H - 1 Regulation

All septic systems will be constructed with the approval of the Department of Health and

will conform to all the regulations of La Plata County. Septic systems that utilize open lagoons will not be allowed.

J. DRIVEWAYS

J - 1 Culverts

Lot owners will provide a new drainage culvert of adequate size in diameter and length under each driveway abutting any street in the Subdivision if deemed necessary by the Board. Said culverts shall be designed and approved for the road specifications of the

El Rancho Florida Metropolitan District. Owners will be responsible for the good repair and operation of each culvert.

J - 2 Road Base

Each driveway abutting any Subdivision street will be minimally improved by the use of road base extending 50 feet from the street.

J - 3 Drainage.

Each driveway will be constructed so that all water will not drain onto the street. All drainage plans will empty into the borrow ditch adjacent to each street.

J - 4 Street Numbers.

Each driveway will post a sign at the entrance of the driveway showing the street number of the property. Said signs shall meet the requirements of the Emergency Services departments of La Plata County.

J - 5 Cleanup.

In the case of new construction, all driveway improvements will be made prior to the

beginning of construction. The cleanup of Subdivision roads is the responsibility of each lot owner. The tracking of construction debris, mud, rocks, and soils is not permitted on subdivision roads.

K. EASEMENTS

K - 1 Defined.

The Association reserves easements of 7.5 feet in width on each side of all lot lines as described in the plats of the Subdivision of La Plata County together with the perpetual right of ingress and egress. Such easements are to be only used for the purpose of constructing, maintaining, operating, replacing, enlarging and repairing electric, telephone water, sewer, gas and similar utility lines and any pipes, wires, ditches, poles and conduits associated with these purposes. No fence however, may be placed closer than 7.5 feet to any lot line bordering any subdivision street.

K - 2 Use of Easements.

No dwelling or improvement to, nor any material, equipment or refuse will be placed upon any part of said easements. This will not preclude construction of fences within the property line, but said fences may be removed or relocated at the property owners expense if they obstruct the use of said easement.

L. ANIMALS

L - 1 Compliance.

The rural nature of the subdivision will be maintained and encouraged. All pets and

animals will be maintained in a clean, proper and healthy manner. Residents will comply with any and all county and state regulations regarding pets and livestock.

L - 2 Restraining of Animals.

All animals or pets shall be penned or otherwise restrained in such a manner as to prevent their straying from the lot where maintained. As per County regulation, dogs at large are prohibited.

L - 3 Commercial Use.

No animals will be raised, kept or bred for commercial purposes. Animals may be raised for personal consumption.

L - 4 Youth Activities.

Youth activities such as 4 - H or Future Farmers of America will be encouraged. All youth projects shall be subject to approval by the Board of Directors on an annual basis.

L - 5 Number of Allowed Animals.

No more than two (2) horses or equivalent livestock units shall be permitted on any three (3) acre lot. One additional horse or livestock unit will be permitted with each additional acre owned in excess of three (3) acres.

L - 6 Livestock Units

One horse, one mule, one donkey, one cow, one emu or one llama are defined as a livestock unit. Six sheep or six goats are defined as one livestock unit. Any livestock not defined in this section shall be reviewed and approved by the Board in advance.

L - 7 Stallions.

No stallion shall be maintained within the subdivision.

L - 8 Precluded Animals.

No Predators or animals harmful to other animals or humans will be allowed. Only domestic animals may be kept as pets or livestock. Pit bulls are specifically prohibited. Animals over one ton in weight are prohibited. Wild animals are prohibited.

L - 9 Household Pets.

No restrictions shall be placed upon the ownership of any household pets, except that any pet may be required to be removed from the premises if, in the opinion of the Board of Directors, the pet constitutes an annoyance or hazard to the owners or residents of neighboring lots. In the event any animal becomes obnoxious, troublesome, dangerous, excessively noisy or destructive to the property of other property owners, said animal will be immediately referred to the La Plata County Animal as a hazard and annoyance. Said animal will be immediately removed and no longer maintained in the subdivision.

L - 10 Authority and Regulation.

The regulation and control of all animals will be recognized as the La Plata County Animal Control Authority.

M. TRASH REMOVAL

M - 1 Containers and Removal.

All trash, garbage and other debris will be kept in suitable containers and removed from the Subdivision on a regular basis.

M - 2 Distance.

Trash containers shall be kept a minimum of 50 feet from the road right of way, except when set out for a reasonable period of time before and after scheduled trash pickup.

M - 3 Maintenance.

It is the responsibility of the homeowner to clean up all trash that falls out of the containers. The homeowner shall keep his property free of trash, litter and garbage.

M - 4 Burning.

All burning will be regulated by the laws of La Plata County. The burning of vegetation and vegetation debris is allowed. The burning of trash and household garbage is prohibited.

M -5 Junk.

The accumulation of Junk is prohibited in the subdivision. Junk is defined as worthless and /or discarded materials. The Board will determine if any particular reported violation constitutes junk. If the Board determines that such a violation exists, the junk must be immediately removed from the offending property at the violator’s expense.

N. FIREARMS

N - 1 Possession.

There will be no limitation on the possession or ownership of firearms beyond those imposed by Federal, State or Local laws and regulations.

N - 2 Discharge of Firearms.

No firearms will be discharged within the Subdivision except in the defense of life or

property.

N - 3 Restrictions.

No target practice or hunting is allowed in the Subdivision.

O. COMMON AREAS

O - 1 Use by Members.

All areas of the Subdivision designated as “Common Areas” will be for the exclusive use of Members and their guests.

O - 2 Member Responsibilities.

All Association Members will be responsible to the condition of the common areas. All Members are responsible for their acts and omissions and such acts of their guests. Maintenance and repair due to misuse are the responsibility of the Association Member.

P. ADJUDICATED WATER FROM THE PIONEER DITCH COMPANY

P - 1 Amount and Use of Adjudicated Water.

The Board shall administer the use of 3.875 cfs of adjudicated water with a priority of F-78 which is carried by the Pioneer Ditch Company. Said water shall be for the beneficial use of all of the members of the subdivision.

P - 2 Management.

The allocation and distribution of these 155.06 shares of adjudicated water from the Pioneer Ditch Company are governed by the Board of Directors.

P - 3 Responsibility of Owners.

The maintenance and upkeep of the main irrigation ditch and its laterals are the responsibility of the property owners through whose real property the ditch or its laterals cross.

Q. VEHICLES

Q - 1 Roads.

All subdivision roads will be operated and maintained under the jurisdiction of the “El Rancho Florida Metropolitan District”. All subdivision roads are La Plata County Roads.

Q - 2 Use of Roads.

No unlicensed or uninsured drivers nor any unregistered or unlicensed motor vehicle shall be permitted to use the subdivision roads. The subdivision adopts the motor vehicle laws of the State of Colorado and La Plata County.

Q - 3 Unlicensed Vehicles.

Non functional unlicensed vehicles shall be kept in an enclosed building or parked in an area completely screened from public view.

Q - 4 Common Area.

Vehicles will not be operated in the Common Areas.

Q - 5 Reporting Violations

All violations of State or County laws shall be reported to the office of the La Plata County Sheriff.

R. MISCELLANEOUS

R - 1 Fences & Hedges.

No fence or hedge will restrict the view of another Lot. Any fence or hedge exceeding 6' in height must be approved by the Board.

R - 2 Signs.

Temporary “For Sale” or “For Rent” sign will be no more than 2' x 3' in size.

R - 3 Discrimination.

In the sale, purchase, use or occupancy of any Subdivision lot there will be no discrimination regarding race, color, creed, sex or disability.

R - 4 Water System.

The subdivision water system is operated by the “El Rancho Florida Metropolitan District.”

R - 5 Exterior Lights.

All exterior lights must have housings which shield or directionally focus the light in a downward and inward manner. Motion activated lights which stay on for fifteen (15) minutes or less are excepted.

S. ANNEXATION

S - 1 Purpose of Annexation.

There are undeveloped properties adjacent to the Subdivision which may be developed and which logically, might wish to share the benefits of membership in the Subdivision. Therefore, the Association reserves the right of annexing adjacent properties if the current owner or developer seeks annexation to the Subdivision of specific properties which share a common boundary with the existing Subdivision.

S - 2 Procedure.

Annexation, in this context, means that such properties would be added to the real estate included in the common interest community and would be subject to the current covenants, by-laws and any other governing documents of the Association including the obligation to pay assessments as specified in the governing documents, a well as the governing documents of the El Rancho Metropolitan District. If the current owner of property which shares a common boundary to the existing Subdivision wishes to annex, that person or entity would submit a written request to the Board and the Members of the Subdivision would vote on the proposal with a simple majority of the eligible voters being required to carry the proposal for annexation. Issues such as prescriptive easement would be explored and outlined for the voters as part of the Board communication to the eligible voters.

The El Rancho Florida Metropolitan District shall also approval all annexation requests.

T. VARIANCE PROCEDURE

T - 1 Authority.

The Board may grant variances to these covenants except for those specific parts of the covenants which require a vote of the membership where there are relevant extenuating circumstances, the Board of Directors may allow reasonable variances to any of these covenants,

which do not require a specific vote of the membership.

T - 2 Compliance.

All variances shall comply with La Plata County and the State of Colorado regulations.

U. MEETINGS

U - 1 Monthly Meetings.

The Board will hold a regular monthly meeting. The Board meetings are open to all

Association members.

U - 2 Annual Meeting.

The Association will hold an Annual Meeting of the Association in February of each year. Said meeting will be noticed by a mailing to each Member at least 30 days in advance.

U - 3 Special Meetings.

Special meetings of the Association may be called by the Board. Said meetings will be noticed by a mailing to each Member at least 30 days in advance.

U - 4 Special Meetings called by the Membership.

Special meetings of the Association may be called by the membership. Said meeting

requires a petition signed by 20% of the total number of members. Said petitioned meeting will be held within 60 days. Additional agenda items may be placed on the meeting by the Board.

U - 6 Conflicts.

Conflicts between these Covenants, the By Laws and the Articles of Incorporation will be resolved in this order: the Articles of Incorporation, the By Laws and then by the Covenants.

V. AMENDMENT PROCEDURE

V - 1 Procedure.

These Covenants may be changed in whole or in part, by a majority vote of the members present in person or by proxy at any regular or special meeting. An exact copy of the revision, or a copy of the entire new Covenant, shall be given to each member prior to the vote. Said vote may take place by mail provided said copy of the revision or the new Covenants, a ballot, and an addressed return envelop are sent to each member at least thirty days before the voted are counted.

W. SEVERABILITY

W - 1 Severability.

If one or more provisions in these covenants as amended is found by a Court of competent Jurisdiction to be invalid, such finding shall not invalidate any of the other provisions of the covenants as amended and all other provisions shall remain in full force and effect.

X. CHOICE OF LAW

X - 1 Colorado Authority.

Choice of Law requirement if suing the Association. By coming under the terms of this agreement each Member agrees that if they ever sue the Association they will do so under

Colorado law and courts no matter where they may currently be located.

Y. COMMON SENSE & COURTESY

Y - 1 Common courtesy tempered with common sense will be the overriding theme of these Covenants.

Approved and Adopted: September 11, 2007