FFHA: Restrictive Covenants

Text of "Restrictive Covenants" reproduced below is from the legal document attached to deeds. For legal reference, please use a copy of the original documents.



The Covenants are registered with Buncombe County, North Carolina, Register of Deeds, in Deed Book 2329, Page 591, on August 28, 2000; incorporating three amendments registered in Deed Book 2542, Page 289, on July 23, 2001; two amendments registered in Deed Book 3821, Page 290, on October 28, 2004; one amendment registered in Deed Book 4252, Page 365, on July 12, 2006; and three amendments registered in Deed Book 5115, Pages 200-203, on June 20, 2013.


This declaration of Restrictive Covenants is made and entered into this 28th day of August, 2000, by and among the property owners in Fairview Forest, a Planned Community in Fairview Township, Buncombe County, North Carolina.


WHEREAS, Fairview Forest has been under various restrictive covenants controlled by land developers throughout its existence, and

WHEREAS, property owners have expressed a desire to make and agree to covenants between and among themselves, and

WHEREAS, the North Carolina Planned Community Act allows a planned community to amend or replace its Restrictive Covenants by an affirmative vote of at least 67% of those qualified to vote, and

WHEREAS, more than 67% of those property owners qualified to vote as members of the Fairview Forest Homeowners' Association, Inc. agree that it is in their best interest to adopt the following Restrictive Covenants in order to address the current needs and desires of the Fairview Forest community,
NOW, THEREFORE, the property owners declare that:

All property located in Fairview Forest is and shall be subject to these Restrictive Covenants, and

These Restrictive Covenants shall run with the land, and

These Restrictive Covenants shall be binding on all parties having or acquiring any right, title or interest on real estate in Fairview Forest.


These Restrictive Covenants supersede any and all restrictive covenants that apply to or have applied to the community specified in Article 2. Definitions, Section 2. 1. "Fairview Forest", below.


Section 2.1. "Fairview Forest" is defined as that property included on plat maps recorded in Buncombe County, North Carolina as follows:

Plat Book 38, Pages 44, 49, 54, 62, 63, 64, 109, 121 and 122; Plat Book 40, Pages 66, 113, 120, 125, 126 and 127; Plat Book 41, Page 129; Plat Book 42, Pages 111, 112, 128 and 129; Plat Book 43, Pages 27, 41 and 62; Plat Book 46, Pages 10, 11, 12, 13, 14, 15, 53, 54 and 55; Plat Book 55, Pages 28, 86 and 87; Plat Book 56, Page 17, 187; Plat Book 57, Pages 93, 128 and 191; Plat Book 61, Pages 136 and 139; Plat Book 64, Page 79; Plat Book 65, Pages 113 and 114; Plat Book 69, Pages 24 and 199; Plat Book 71, Page 123.

Also included are: The property owned by Fairview Forest Trust and described in the Registry of Deeds of Buncombe County, North Carolina in Deed Book 1981, Page 100, or by its successors, assigns and heirs; the properties owned by James M. Venglarik and wife, Cecilia J. Venglarik and described in the Registry of Deeds of Buncombe County, North Carolina in Deed Book 1795, Pages 58 and 61, or by their successors, assigns and heirs; The property owned by Fairview Forest Homeowners' Association, Inc. and described in the Registry of Deeds of Buncombe County, North Carolina in Deed Book 1677, Page 506. This definition may be expanded from time to time by mutual agreement between owner(s) of property adjacent to Fairview Forest and the Fairview Forest Homeowners' Association, Inc.

Section 2.2. "Assessments" means the amount of money assessed each property owner to cover common expenses as well as any fines, fees, late charges, interest and attorneys' fees as set forth in these Restrictive Covenants and the Bylaws.

Section 2.3. "Association" means the Fairview Forest Homeowners' Association, Inc., a non-profit corporation organized under North Carolina law to manage certain responsibilities as set forth below.

Section 2.4. "Bylaws" means the Bylaws of Fairview Forest Homeowners' Association, Inc., which may be obtained from the Corporation at the address listed below in Article 5, Homeowners' Association.

Section 2.5. "Common expenses" means expenditures made by, or financial liabilities of, the Association, together with any allocations to reserves.

Section 2.6. "Common property" or "Common areas" means land, buildings and improvements, and rights-of-way that are owned by, or are the responsibility of, the Association.

Section 2.7. "The Documents" means (as used in these Restrictive Covenants) the Restrictive Covenants, the Bylaws, and the rules, regulations and policies of Fairview Forest Homeowners' Association, Inc.

Section 2.8. "Homeowner", where used in these Restrictive Covenants, means "property owner".

Section 2.9. "Property" means real estate in Fairview Forest.

Section 2.10. "Restrictive Covenants" means the restrictions, conditions and easements found in this document, providing a common agreement for all the property owners.

Section 2.11. "Reasonable attorneys' fees" means attorneys' fees reasonably incurred without regard to any limitation on attorneys' fees which otherwise may be allowed by law.

Section 2.12. Roads, Rights-of-way, Easements and Driveways
a) "Roads" means rights-of-way dedicated for common travel into or out of Fairview Forest.
b) "Rights-of-way" means those roads shown on Buncombe County plat maps. Rights-of-way platted after 1993 must meet Buncombe County requirements.
c) "Easements" means certain areas of land reserved for drainage and utility company use.
d) "Driveway" means a private road leading to one or more homes.

Section 2.13. "Setback" means a specified distance that a structure must be from a property line.


Unless amended or replaced by the members of Fairview Forest Homeowners' Association, these Restrictive Covenants shall remain in effect until June 1, 2040.


The North Carolina Planned Community Act (1998-199,s.1.) §§ 47F-1-101, et seq., (sometimes referred to as Planned Community Act") is a statute that sets standards, guidelines and rules for private developments ("planned communities") in North Carolina. The act was passed by the North Carolina legislature in 1998 and went into effect on January 1, 1999. Application of the Planned Community Act to Fairview Forest was approved by 78.7% of property owners in Fairview Forest. The North Carolina Planned Community Act is herewith reaffirmed as follows:

The North Carolina Planned Community Act
(1998- 199, s.1.) shall apply to Fairview Forest,
a planned community in Fairview Township,
Buncombe County, North Carolina.

Submission of the governance, administration, and operation of Fairview Forest to the Planned Community Act is for the benefit of all property owners and to allow the property owners to take advantage of the expanded statutory basis offered by the act.


Section 5.1. The Fairview Forest Homeowners' Association, Inc. is a North Carolina non-profit corporation. The Association was incorporated on the 26th day of May, 1989. The Articles of Incorporation are on file at the Office of the President of the Association.

Section 5.2. The Association's address is:
Fairview Forest Homeowners' Association
101 Fairview Forest Drive
Fairview, NC 28730

Section 5.3. The purpose of the Association is to:
a) repair, maintain and improve the rights-of-way designated as roads on Buncombe County, North Carolina plat maps.
b) maintain and repair the common property of the Association.
c) prepare the annual budget for allocation of expenses. The budget shall be presented to, and approved by, the membership at the Annual Meeting.
d) budget, collect and expend annual and special assessments from property owners to meet common expenses.
e) hold the Annual Meeting of the Association on or about the last Monday in April.
f) approve construction plans as defined below under construction rules.
g) create and enforce rules, regulations and policies pertaining to the use of Association property.
h) enforce compliance with The Documents of the Association.
i) assure the general good of the community.

Section 5.4. The corporate structure of the Association is defined in the Association Bylaws. Association management is composed of:
a) five directors, elected by the members, and
b) four officers, appointed by the Board of Directors.
   1) President and Vice President shall be chosen from the Directors.
   2) Secretary and Treasurer may be chosen from the general membership or from the Directors.

Section 5.5. Limits on the power of the Association.
a) The Association shall not generally regulate the behavior and activities of a property owner except when the property owner is out of compliance with the provisions of The Documents.
b) The Association shall not be involved in disputes between property owners.


Section 6.1. In the case of any conflict between the above documents, control in order of higher precedence is as follows:
a) The Planned Community Act in those sections that the act itself specifies to take precedence over existing Restrictive Covenants
b) The Restrictive Covenants
c) The Articles of Incorporation
d) The Bylaws


A property owner in Fairview Forest shall automatically become a member of the Fairview Forest Homeowners' Association, Inc., upon recording a deed to owner's property.

Section 7.1. Privileges of membership.
a) Each owner is allocated one vote per assessment paid.
b) Owner may use community common areas, including the Clubhouse.

Section 7.2. Responsibilities of membership.
a) Owner shall comply with the provisions of The Documents.
b) Each owner shall pay annual and/or special assessments for common expenses set by the Board of Directors.


Section 8.1. Residential property. All property is intended for use as residential property. Activities such as a home office or home-based business that are consistent with use as residential property are permitted. Such use shall not create an imposition upon other property owners.

Specific restrictions include:
a) No commercial or business signs shall be displayed.
b) The property shall not be available for unscheduled, business-related visits.
c) Noise created by business-related activity shall not be heard past the property line.
c) No commercial operations such as an auto repair shop, a boarding and/or grooming kennel or a commercial farming operation shall be maintained on any property.

Section 8.2. Pets and animals.
Only animals maintained as pets for personal pleasure may be kept on any property. No animals, other than dogs, weighing more than 100 pounds may be maintained on any property that contains less than ten acres. On a property of ten or more acres with an overall slope no greater than 25%, horses may be maintained, but shall be limited to no more than one horse for each four acres of property.

Property owners are personally responsible for control of their pets. The Association shall be held harmless for any loss, damage or liability caused by any property owner's pet.

Section 8.3. Real estate signage.
It is the intent of Fairview Forest to maintain a neat and orderly community appearance, and discourage uninvited non-residents randomly driving through our private community.
a) Sign placement.
b) Real estate signs shall be placed only on the property that is for sale or rent. No more than two signs per property shall be posted.
C) Sign maintenance.
Realtors/owners must maintain their signs in an upright, orderly way.

Section 8.4. Storage of automobiles, motor homes, boats, trailers.
No junked or abandoned automobile, motor homes, boat, travel trailer or other item of personal property of comparable size shall be maintained upon any property unless it is currently licensed or registered by the proper authority for its intended use. However, such unlicensed or unregistered items may be stored within a garage or workshop upon the property.

Section 8.5. Dumping.
No lot shall be used as a dumping ground for rubbish, trash, or garbage. Trash put out for pick-up by a trash collector shall be in a trash container or secure plastic bag. If such trash is strewn by an animal or due to other reasons, it shall be the responsibility of the property owner to clean it up.

Section 8.6. Burning.
No property owner or property owner's guest, tenant, vendor or contractor shall burn any material, in the open or in a burn barrel, in Fairview Forest. This policy does not include the use of barbecue grills.

Section 8.7. Hunting and trapping.
Property owners, their vendors or guests, shall not take part in hunting or trapping in Fairview Forest.

Section 8.8. Maintenance and repair of owner's property.
Each property owner is responsible for the maintenance and repair of his/her property and any improvements on it.

Section 8.9. Liability for damage to roads and common property.
A property owner is responsible for the repair of damage done by the property owner, his/her guests or vendors, to common property of the Association. If repairs are not effected within a reasonable time, the Association will make the repairs and bill the property owner. If the bill is not paid within 30 days, such billing shall constitute a lien against the owner's property.

Section 8.10. Liability for damage to an owner's property by the Association.
If damage is inflicted on any owner's property by an agent of the Association in the scope of the agent's activities as such agent, the Association shall be liable to repair such damage or to reimburse the property owner for the cost of repairing such damage. Such liability shall not apply as defined in Section 8.12. b), below.

Section 8.11. Property lines and setbacks.
a) No building shall be located on any property nearer than thirty feet from the side lines, thirty feet from the rear line, and fifty feet from the front lot line. Setbacks shall be measured from the property line to eaves, steps, porches or decks.
b) The Association may grant a variance with respect to set backs to accommodate exceptional topography of any given lot and/or to cure any unintentional violation not exceeding twenty-five percent of any setback requirement.

Section 8.12. Utilities easements and rights-of-way.
a) Utility and drainage easements are reserved five feet in width along interior lot lines and over the rear 7-1/2 feet of each lot for installation and maintenance of utilities and drainage facilities. Such easements shall not be applicable along interior lot lines where adjoining lots are owned by the same owner. Rights-of-way are reserved as designated on the recorded plats. Utility and drainage easement and rights-of-way are also reserved within the bounds of the roadways, green space and common areas as shown on any recorded plat.
b) Neither the Association and its vendors, nor any utility company or its vendors using the easements or rights-of-way, shall be liable for any damage done by them to shrubbery, trees, or flowers, or to the property of the owner situated on the land covered by the easements and rights-of-way.

Section 8.13. Tree removal.
Not more than half of the trees having a diameter greater than four inches may be removed from any property for the purpose of construction.

Section 8.14. Rules, regulations and policies.
The Board of Directors may, from time to time, initiate, modify or delete rules, regulations and policies applicable to the lots, the common property and Fairview Forest as a whole. Such rules, regulations and policies do not require the consent of the members and shall be binding on all property owners. Such rules, regulations and policies may be overruled, canceled or modified at a regular or special meeting by a majority of the total votes in the Association.

Section 8.15. Compliance with the Restrictive Covenants, Bylaws, rules, regulations and policies.
When a property owner accepts a deed (or in any other way accepts ownership or occupancy of the property), he or she agrees that the provisions of The Documents are binding on the property and the property owner.

Section 8.16. Rights of way to non-Fairview Forest Properties.
It is prohibited to use any lot or lots in Fairview Forest for the purposes of providing, allowing or permitting access for ingress, egress or regress to any real property located outside of Fairview Forest. Such prohibition shall include, but not be limited to, easements, rights of way, licenses and driveways. The Association is authorized to enforce this prohibition by action at law or in equity. Any and all costs, including reasonable attorneys fees that the Association might incur in enforcing this provision shall be paid by the lot owner(s) violating this prohibition.

Section 8.17. Rental and Leasing of Property
The Board of Directors shall establish and enforce rules and regulations regarding the renting and/or leasing of premises in Fairview Forest.


Section 9.1. Definitions of construction methods:
a) Stick-built home
A home built entirely on site except for common components such as window units, pre-hung doors, floor joists and roof struts.
b) Pre-cut home
A home built from components that are cut to size off site and assembled on site.
c) Panelized home
A home built with walls (or panels) that are built off site and assembled on site.
d) Modular home
A home built from two or more units (or box modules) that are built off site, including some wiring and plumbing. Modules are trucked to the site and positioned and assembled on a foundation on site.
e) Mobile home
A home built off site on one or more mobile chassis, trucked to the site and assembled on a temporary or permanent foundation on site.
f) Pre-fab and/or manufactured home
Terms often used to designate any construction method that involves use of major components built off site.

Section 9.2. Approved methods of home construction.
Stick-built, pre-cut and panelized construction methods are the only methods approved for homes built in Fairview Forest. Modular and mobile home construction methods are specifically prohibited.

Section 9.3. Type of homes.
a) Homes shall be single-family residences. Inclusion of a guest or relative apartment within the residence is permitted.
c) Duplexes, town houses and multi-family dwellings are specifically prohibited.

Section 9.4. Other structures.
Detached garages and workshops may be constructed on a property. Such buildings shall conform to applicable construction rules, including Architectural Committee approval.

Section 9.5. Driveway drainage.
Driveways shall be constructed in such a way as to minimize drainage that will damage roads and common areas. Proper ditches, ditch lining and culverts must be installed. Driveways that are found to be out of compliance with proper drainage must be corrected by the property owner. If the problem is not corrected within a reasonable time, the Association will make the repairs and bill the property owner. If the bill is not paid within 30 days, such billing shall constitute a lien against the owner's property.

Section 9.6. Approved exterior materials.
a) Earth tone materials. Earth tone materials are materials that blend in with the mountain environment of Fairview Forest.
b) Exterior materials. The exterior materials used to build, place or renovate structures in Fairview Forest shall consist of wood, brick, concrete composite, rock, logs or other material of an earth tone nature. Exterior paint and/or stain shall be of an earth tone color. No exterior of any structure shall consist of plastic, vinyl, or aluminum.
c) Roofing materials. Roof material may include asphalt, fireproof shake, tile, slate or steel. Roofing material color shall also comply with the "earth tone nature" requirement.
d) Future materials. The Board of Directors, upon recommendation of the Architectural Committee, may add newly-developed materials to the acceptable materials list as long as they meet the earth tone nature requirement.

Section 9.7. Minimum square footage of residences.
All residences constructed in Fairview Forest after January 2000 shall have a minimum of twelve hundred square feet of floor space under roof.

Section 9.8. Minimum lot size.
a) No structure shall be constructed on a lot smaller than one acre.
b) After June 30, 2001, no lot shall be subdivided to create a lot smaller than two acres. If such a lot is created after that date, the Association shall not approve construction of a structure on it.

Section 9.9. Use of non-residential structures.
No motor home, trailer, basement, tent, shack or garage erected or placed on any lot shall be used as a temporary or permanent residence.

Section 9.10. Architectural Committee approval of structures.
a) No structure shall be constructed or placed on a lot unless the property owner first obtains a
b) certificate of Construction Approval from the Association Architectural Committee. Applicant must submit the following:
   1) Completed Architectural Committee application form, signed by the property owner.
   2) Clear, legible plan and elevation drawings of structure(s).
   3) A lot survey (or comparable, accurate drawing of the lot) showing location of proposed structure(s).
c) Upon receipt of a complete application, the Architectural Committee shall act upon it within ten business working days. The Committee may approve it, reject it or request additional information or clarification. If the Committee does not respond within the specified period, the application shall be considered approved.

The Association shall leave to the appropriate governing bodies the enforcement of federal/state/county standards and codes.


The Association assesses fees from all property owners to cover common expenses as described in §47F-3-115 of the Planned Community Act and as otherwise provided in The Documents. Such assessments shall be used for the general purposes of promoting the health, safety, welfare, common benefit and enjoyment of the property owners and include maintenance of the roads and common areas, purchase of required insurance, maintenance of reserves and for other reasons.

Section 10.1. Assessment due date.
Assessments are due on June 1 of each year. The Association will send an invoice for annual assessments to each property owner on or before May 1 of each year. Annual assessments cover the period from June 1 of the current year through May 31 of the following year.

Section 10.2. Assessment amount.
The Board of Directors shall set the assessment amount. The assessment amount is $350.00 for the assessment-year 2000 - 2001. However, assessments may be changed according to Section 10.4. below.

Section 10.3. Assessment basis.
The assessment amount shall be based on the cost of:
a) maintenance, repair and improvement of the rights-of-way and common property, including the Clubhouse.
b) insurance,
c) financial and legal services,
d) office supplies and postage,
e) utilities,
f) taxes,
g) miscellaneous expenses, and
h) adequate reserves to cover minor emergencies and long-term projects.

Section 10.4. Change in assessment amount.
A majority of the Board of Directors may change the assessment amount.

Section 10.5. Notice of change in assessment amount.
If the Board of Directors changes the assessment amount, the membership shall be given notice in writing at least 30 days prior to the June 1 assessment date.

Section 10.6. Special assessments.
The Board of Directors shall declare a special assessment when necessary to pay for a substantial, unexpected expense or emergency.
a) Determination of the special assessment amount shall be set by dividing the unexpected expense by the number of assessment-paying members.
b) Purposes for the special assessment include:
  1) emergency road work expense,
  2) emergency expense for the common areas, and
  3) other emergency purposes determined by the Board of Directors.
c) Property owners will have 30 days to remit payment after which they will be delinquent.

Section 10.7. Liability for payment of assessments.
a) Each owner of property in Fairview Forest shall pay the annual assessment and is personally liable for such assessments, interest and costs of collections, including, but not limited to, reasonable attorneys' fees actually incurred.
b) Neither property size nor location shall affect the amount of the assessment.
c) A property owner who owns two or more contiguous properties shall pay one assessment.
  1) For the purposes of these Restrictive Covenants, "contiguous" is defined as one property touching another at a point or along a property line.
  2) Because most properties in Fairview Forest extend to the middle of the right-of-way that they abut, adjacent, commonly-owned properties on both sides of most roads are considered contiguous.
  3) Properties that abut Fairview Forest Drive on either side, from the entrance to Red Oak Forest Road, do not extend to the middle of the right-of-way.
d) Properties owned by the same entity that has a different name or combination of names on the deeds for such properties shall be considered as separate, assessable properties, even if the properties are contiguous.

Section 10.8. No waiver of assessments.
No property owner may exempt himself or herself from liability for payment of assessments by waiver of the use or enjoyment of the common property or by abandonment of his or her property against which the assessments are made.

Section 10.9. Joint and several liability for assessments.
(Note: for purposes of Section 10.9., the term "seller" represents either the seller or the grantor and the term "buyer" represents either the buyer or the grantee.)

When assessments have not been paid on a property that is being sold or transferred, the buyer of the property shall be jointly and severally liable with the seller for all unpaid assessments and related costs and penalties. The buyer retains the right without prejudice to recover from the seller any amounts paid by the buyer.

Section 10.10. Payment of assessments for ownership of a property for a period of less than a year.
(Note: for purposes of Section 10.10., the term "seller" represents either the seller or the grantor and the term "buyer" represents either the buyer or the grantee.)
a) When assessments have been paid on a property that is being sold or transferred, the buyer and the seller are responsible for settlement of paid assessments.
b) In a case where a property owner sells (or otherwise transfers) his or her contiguous property or divides and sells a larger property into two or more smaller properties, a newly- assessable property is created upon closing. The Association shall invoice the new property owner for a monthly, prorated portion of the assessments (from one-twelfth to twelve-twelfths, to the nearest half month).
c) In a case where a property owner sells (or otherwise transfers) his or her property to another property owner whose property is contiguous, the Association shall rebate to the seller a monthly, prorated portion of the assessments (from one-twelfth to twelve-twelfths, to the nearest half month).

Section 10.11. Collection of assessments.
a) Each property owner is responsible for payment of assessments by June 1 regardless of notification by the Association.
b) Partial or time-payment plans are not offered by the Association.
c) Property owner's canceled check is the receipt for assessments.
d) A check returned to the Association for insufficient funds will be charged a fee, to be set by the Board of Directors, up to the maximum allowed by the State of North Carolina.

Section 10.12. Delinquent assessments.
a) A property owner is given a penalty-free period of 30 days (until June 30) after the due date to pay in full. An owner remitting assessments that are received after July 1 must add a late charge of five per cent of the outstanding assessment to the payment. If the late charge is not included, the owner will remain liable for the unpaid late charge.
b) If a property owner has not paid assessments and fees in full by August 1, the Association may contract its attorney to file a claim of lien with the General Court of Justice, Superior Court Division of Buncombe County, against the property owner. The claim of lien will include unpaid assessments, late charges and interest, plus reasonable attorneys' fees and all costs of collection.
   1) At the discretion of the Board of Directors, the Association may choose to file a claim of lien in lieu of having its attorney file it. The Association shall charge a reasonable fee for the expense of filing such a lien.
   2) As to specific policies and procedures regarding liens, the Association shall follow the North Carolina Planned Community Act General Statute, §§ 47F-1-101, et seq.
   2) A judgment, decree or order in any action brought under this section shall include costs and reasonable attorneys' fees for the prevailing party.
c) The Association shall have the discretion to initiate a claim of lien on the property of a delinquent property owner after July 1, if:
   1) the property is advertised for sale,
   2) the property is listed for sale with a Realtor or,
   3) the Association has a reasonable belief that the property may be transferred to another owner.
d) In addition to lien rights described in this Article and the Planned Community Act, §§47F-1-101, et seq., the Association has the right to bring a separate collection action to enforce the personal liability of property owners to pay assessments.
e) In accordance with § 47F-3-115(b) of the Planned Community Act, the Association hereby establishes that any unpaid assessments, fees or late charge shall bear interest at eighteen percent (18%) per annum.
f) The late payment interest of 18% per annum (computed at 1-1/2 % per month) will be calculated starting on June 1 and charged against owner's unpaid balance after August 1 of each year.
g) If a property owner has not paid his/her assessments and all related charges by September 1, the Association will contract its attorney to initiate a lawsuit to collect all unpaid amounts.
h) A delinquent property owner may submit a written petition to the Board of Directors for an extension to avoid the filing of a lawsuit. The delinquent property owner should present good and extraordinary reason(s) for the extension. The petition must be received by July 21. The Board of Directors must rule on the extension before August 1.
i) A property owner who is delinquent in payment of assessments shall have suspended his/her right to vote as well as other privileges determined by the Board of Directors. Nonpayment of assessments on one property by an owner of more than one assessable property shall cause the suspension of such rights for all properties.
j) The Board of Directors has the discretionary power regarding collection of delinquent assessments to alter the policy as to dates, time periods, percentages and amounts as required by any unforeseen future situation. Such alteration shall comply with the Planned Community Act Alterations to the policy shall apply equally to all property owners.

Section 10.13. Status of assessments.
The Association shall, upon written request by a member in good standing, provide a statement of account, setting forth the assessment status of any property owner.

Section 10.14. Surplus funds.
Any surplus funds of the Association remaining after payment of, or provision for, common expenses shall be retained in the operating account or the contingency account in the sole discretion of the Board. No such surplus funds shall be paid to property owners nor shall such surplus be used as a credit to reduce future assessments.

Article 11. FISCAL YEAR

The Association's Fiscal Year as of 2000-2001 shall be June 1 through May 31. The Fiscal Year may be changed at the discretion of the Board of Directors.


The property owners of Fairview Forest, to a large extent, maintain a "live-and-let-live" attitude toward rule making and enforcement. However, it is the intent of the Association to actively enforce the limited restrictions, policies and rules that we do have. The following sections explain the procedures to bring charges, fine or otherwise penalize property owners who violate The Documents of the Association. Enforcement procedures are in compliance with the Planned Community Act.

Section 12.1. Charge of violation.
The Board of Directors, by a majority vote, may charge a property owner with violation(s) of The Documents. Such violation(s) shall be specific and in writing. The charge shall also state remedies and/or time requirements, where applicable.

Section 12.2. Property owner's right to be heard.
A property owner so charged may, within five business working days of receipt of the charge, request an opportunity to be heard by the Board and to present evidence. The Board shall provide in writing a notice of its decision within five business working days of the hearing.

Section 12.3. Fines and suspensions.
a) Fines for violations. A fine of up to $100.00 per day may be imposed for each violation. Such a fine shall be imposed without further hearing for each day after the final decision that the violation occurs. Such fines shall be assessments secured by liens.
b) Suspensions for violations. If it is decided that a suspension of community privileges or services should be imposed, the suspension may be continued without further hearing until the violation or delinquency is cured. Community privileges that may be suspended include (but are not limited to) the right to vote or to participate in activities of the Association as well as access to common areas, including the Clubhouse. Suspended privileges shall not include denial of right of access by the owner to his/her property.

Section 12.4. Attorneys' fees for enforcement.
In a legal action to enforce the provisions of The Documents, the court may award reasonable attorneys' fees to the prevailing party as contemplated by §47F-3-120 of the Planned Community Act.


These Restrictive Covenants may be amended only by a signed, affirmative vote by property owners to which at least sixty-seven percent (67%) of the votes in the Association are allocated. One vote is allocated to each property owner for each assessment paid.

Section 13.1. Amendment proposal procedure.
An amendment may be proposed as follows:
a) By a majority vote of the Board of Directors, the Board may propose an amendment and put it before the membership for a vote.
b) A property owner in good standing may propose in writing to the Board of Directors an amendment that is signed by qualified property owners to which at least 10% of the votes in the Association are allocated.
   1) By a majority, affirmative vote of the Board of Directors, the Board shall put the member-proposed amendment before the membership for a vote.
   2) If the Board rejects the member-proposed amendment, the property owner may resubmit the amendment, signed by qualified property owners to which at least 25% of the votes in the Association are allocated. Such a resubmitted amendment shall be put before the membership for a vote.

Section 13.2. Voting for amendments.
a) Voting for amendments shall be by paper ballot, mailed or otherwise properly delivered to all qualified property owners. A property owner shall vote "YES" or "NO", sign and date the ballot and return it to the Association.
   1) A ballot sent by facsimile transmission is acceptable.
   2) The Board may accept verifiable electronic votes when such capability is available.
   3) There is no time limit on the vote.
b) The packet in which a ballot is presented to property owners may include a reasonable amount of written information from the Board and/or from qualified property owners.

Article 14. INSURANCE

The Association shall put in place such insurance coverage as is specified in the Bylaws and as is required by the statutes of the State of North Carolina, including § 47F, the Planned Community Act, and § 55A, The Non-profit Corporation Act. Such coverage shall be reviewed annually.


Section 15.1. Application requirements.
Owner(s) of property(s) that are adjacent to Fairview Forest and meet the requirements defined in these Restrictive Covenants may apply in writing to the Association to join Fairview Forest and submit such property to the Restrictive Covenants.

Section 15.2. Procedures.
The Board of Directors shall establish procedures by which owner(s) may submit property(s) for inclusion in Fairview Forest. Such procedures shall conform to the following:
a) Property(s) submitted for consideration shall have plat(s) of the property(s) recorded in Buncombe County.
b) Property(s) submitted for inclusion into Fairview Forest shall be accepted only after an affirmative vote of a 67% majority of property owners in good standing. Such an affirmative vote shall constitute an amendment to Article 2. Definitions, Section 2.1 and therefore shall be recorded as such in the Buncombe County Register of Deeds.
c) Owner(s) of property(s) proposed for inclusion in Fairview Forest shall bear all expenses related to the submission, regardless of outcome. Expenses shall include, but not be limited to, administrative expenses, attorneys fees, and filing fees. At the sole discretion of the Board of Directors, the Association may require a retainer fee for expenses prior to commencing the submission procedure.

Article 16. WAIVER

No provision in these Restrictive Covenants, the Bylaws or the Articles of Incorporation shall be deemed to have been waived, abandoned or abrogated by reason of failure to enforce them.


Invalidation of any one of these Restrictive Covenants by judgment or court order shall in no way affect any of the other provisions, which remain in full force and effect.


Termination of Fairview Forest as a Planned Community shall be accomplished only in accordance with § 47F-2-118 of the Planned Community Act.