DECLARATION SUBMITTING PHASE 1 0F THE BLUFFS – TO OREGON UNIT OWNERSHIP LAW

THIS DECLARATION, pursuant to the provisions of the Oregon Unit Ownership Law, is made and executed this 18th day of June 1977 by SALISHAN HILLS, INC., an Oregon corporation, hereinafter called “Developer.”

Developer proposes to create a condominium to be known as THE BLUFFS, which will be located in Salishan Hills, Lincoln County, Oregon. The purpose of this declaration is.to submit Phase 1 of The Bluffs to the condominium form of ownership and use in the manner provided by the Oregon Unit Ownership Law.

NOW, THEREFORE, Developer does hereby declare and provide as follows:

1. DEFINITIONS..

When used herein the following terms shall have the following meanings:

1.1 “Bylaws” means the Bylaws of the Association of Unit Owners of The Bluffs adopted pursuant to Section 12 below as the same may be amended from tine to time.

1.2 “Developer” means Salishan Hills, Inc., an Oregon corporation, and its successors and assigns.

1.3 “Plan of Salishan Hills” means that instrument dated January 17, 1976, recorded January 28, 1976 in Book 62 of the Records of Deeds of Lincoln County, Oregon at page 309.

1.4 “Plans” means the plat or site plan and floor plans of Phase 1 of The Bluffs, recorded simultaneously with the recording of this declaration.

1.5 “Salishan Hills Declaration Submitting The Bluffs, Phase 1, to the Plan of Salishan Hills” means that instrument dated _______and recorded _____________________in Book ______of the Records of Deeds of Lincoln County, Oregon at page _______.

1.6 Incorporation by Reference. Each of the terms defined in Section 1 of the Salishan Hills Declaration subjecting The Bluffs, Phase 1, to the Plan of Salishan Hills shall have the meanings set forth in such Section 1, including those definitions incorporated therein by reference. Except as otherwise provided in this declaration, each of the terms defined in ORS 91.505, a part of the Oregon Unit Ownership Law, shall have the meanings set forth in such section.

2. PROPERTY SUBMITTED..

The property submitted to the Oregon Unit Ownership Law hereunder is held by Developer and conveyed by it in fee simple estate. The land submitted hereunder, being Phase 1 of The Bluffs, is located in Salishan Hills, Lincoln County, Oregon, and is more particularly described in Exhibit A attached hereto. Such property includes the land so described, all buildings, improvements and structures thereon, all easements, rights and appurtenances belonging thereto, and all personal property used in connection therewith. Upon the filing of this declaration, each unit owner will be entitled to certain nonexclusive easements within Salishan Hills as provided in the Plan of Salishan Hills and the Salishan Hills Declaration Subjecting The Bluffs, Phase 1, to the Plan of Salishan Hills. In addition, each unit owner will be entitled to certain easement rights under an agreement dated January 17, 1976 between Salishan Properties, Inc., Salishan Leaseholders, Inc., and John D. Gray, recorded January 19, 1976 in Book 61 of the Records of Deeds of Lincoln County at page 1981; an agreement and joint use agreement dated January 23, 1976 between John D. Gray and Salishan. Hills, Inc., recorded April 13, 1976 in Book 63 of such records at page 1902 (as amended); an easement and joint use
agreement dated March 10, 1976 between Salishan Properties, Inc. and Salishan Hills, Inc., recorded April 13, 1976 in Book 63 of such records at page 1913.

3. NAME.

The name by which the property submitted hereunder shall be known is “The Bluffs.”

4. UNITS.

4.1 General Description of Buildings. Phase 1 contains two buildings of dwelling units. One dwelling unit building is three stories without basement, and the other is two stories without basement. The buildings are of wood frame, pole and concrete foundation with wood siding.

4.2 General Description, Location and Designationof Units. Phase 1 consists of a total of 5 units. The dimensions, designation and location of each unit in Phase 1 is shown in the plans filed simultaneously herewith and made a part of this declaration as if fully set forth herein. The approximate area of each unit is shown on Exhibit B, attached hereto and made a part hereof.

4.3 Boundaries of Units. Each unit shall be bounded by the interior surfaces of its perimeter and bearing walls, floors, ceilings, windows and window frames, doors and door frames, and trim, and shall include both the interior surfaces so described and the air space so encompassed. In addition, each unit shall include the outlet of any utility service lines, including water, sewerage, gas or electricity, and ventilating ducts, within the unit, but shall not include any part of such lines or ducts themselves.

5. GENERAL COMMON ELEMENTS.

Each unit will be entitled to a percentage ownership interest in the general common elements determined by the ratio by which the approximate area of the particular unit bears to the total approximate area of all units combined, as is more particularly described in paragraph 13.4 below. The general common elements consist of the following:

5.1 The land, pathways, driveways, fences, grounds, carport structures and parking areas, except parking spaces within carports and certain other parking spaces bearing the number of a unit as shown on the plans, which are designated as limited common elements by Section 6 below.

5.2 Pipes, ducts, flues, chutes, conduits, wires and other utility installations to their outlets.

5.3 Roofs, foundations, bearing walls, perimeter walls, beams, columns and girders to the interior surfaces thereof.

5.4 The exterior surfaces of porches and decks.

5.5 All other elements of the buildings and the property necessary or convenient to their existence, maintenance and safety, or normally in common use, except as may be expressly designated herein as part of a unit or a limited common element.

6. LIMITED COMMON ELEMENTS.

The following shall constitute limited common elements, the use of which shall be restricted to the units to which they pertain:

6.1 All porches and decks, except for the outside exterior surfaces thereof, each of which shall pertain to the unit which it adjoins.

6.2 Parking spaces within carport structures and any other parking spaces which bear the number of a unit as shown on the Plans, each of which shall pertain to the unit whose number it bears in the Plans; provided, however, that any such parking space may be transferred so as to pertain to a different unit by an amendment to this declaration executed by the owner and any mortgagee of the unit to which the parking space previously pertained and by the owner of the unit to which the space is being transferred. Such transfer shall be effective upon the filing of such amendment in the Records of Deeds of Lincoln County, Oregon.

6.3 Storage areas on entry porches, decks and carports, each of which shall pertain to the unit which the specific porch or deck adjoins, or to which the adjoining parking space pertains in the case of storage areas in carports.

7. USE OF PROPERTY.

Each unit is to be used for residential or lodging purposes. Additional limitations on use are contained in the Plan of Salishan Hills, the Salishan Hills Declaration Submitting The Bluffs, Phase 1, to the Plan of Salishan Hills, the Bylaws of the Association of Unit Owners of The Bluffs filed herewith and the rules and regulations adopted pursuant to such bylaws. Each unit owner shall be bound by each of the terms, conditions, limitations and provisions contained in such documents.

8. COMMON PROFITS AND EXPENSES; VOTING.

8.1 The common profits derived from and the common expenses of the common elements shall be distributed and charged to the owner of each unit according to the percentage of undivided interest of such unit in the general common elements.

8.2 Each unit owner shall be entitled a vote in the affairs of the association of unit owners equal to his Percentage of undivided interest in the general common elements for each unit owned by him.

9. SERVICE OF PROCESS.

The name of the person to receive service of process in cases provided in subsection (1)of ORS 91.633 is WILLARD SCHWARZ and his, place of residence within Lincoln County, Oregon, is Lot 487 Salishan Hills Drive, Gleneden Beach, Oregon 97388.

10. ENCROACHMENTS.

If any Portion of the common elements now encroaches upon any unit, or if any unit now encroaches upon any other unit or upon any portion of the common elements, as a result of the construction of any building, or if any such encroachment shall occur hereafter as a result of settling or shifting of any building, a valid easement for the encroachment and for the maintenance of the same so long as the building stands, shall exist. In the event any building, unit, adjoining unit, or adjoining common element, shall be partially or totally destroyed as a result of fire or other casualty or as a result of condemnation or eminent domain proceedings, and then rebuilt, encroachments of parts of the Common elements upon any unit or of any unit upon any other unit or upon any portion of the common elements, due to such rebuilding, shall be permitted, and valid easements for such encroachments and the maintenance thereof shall exist so long as the building shall stand.

11. APPROVAL BY MORTGAGEES.

In addition to any other approvals required by the Oregon Unit Ownership Law, this declaration or the bylaws of the association of unit owners, the prior written approval of all holders of first mortgages or beneficiaries of first deeds of trust of units in the condominium must be obtained for the following:

11.1 The removal of the property from unit ownership, except when such removal is by operation of ORS 91.660(2) in the case of substantial loss to the units and common elements;

11.2 The partition or subdivision of any unit or of the common elements;

11.3 A change in the percentage interests in the common elements of the unit owners, except when such change is by virtue of the annexation of additional phases as provided in Section 13 below and except for the transfer of a parking space which is a limited common element, in which case only the mortgagee or beneficiary of the unit from which the space is being transferred need consent; or

11.4 Any amendment to this Section 11.

12. ADOPTION OF BYLAWS, APPOINTMENT OF INTERIM BOARD, AND DESIGNATION OF MANAGER.

Upon the execution and the filing of this declaration, the Developer shall adopt bylaws for the Association of Unit Owners of The Bluffs, which bylaws are to be filed simultaneously herewith. At the same time, Developer will appoint an interim board of directors of the association, which directors shall serve until their successors have been elected as provided in the bylaws. Such interim board of directors may appoint a manager or managing agent for the condominium on behalf of the association of unit owners, and such manager or managing agent shall have complete authority to assume full control and responsibility for the management, operation and maintenance of the condominium from the date of its formation at the expense of the association.

13. PLAN OF DEVELOPMENT.

The condominium may be developed in up to five phases. By filing this declaration, Developer hereby submits Phase 1 to the condominium form of ownership. Developer reserves the right to add four additional phases to the condominium and to annex such additional phases by filing supplements to this declaration pursuant to ORS 91.545.

13.1 Maximum Number of Units. Phase 1 contains a total of 5 units. Proposed Phase 2 would contain not more than 12 units, proposed Phase 3 would contain not more than 7 units, proposed Phase 4 would not contain more than 6 units, and proposed Phase 5 would not contain more than 8 units, for a total of not more than 38 units in the condominium.

13.2 Election Not to Proceed. In order to limit the condominium to fewer than five phases, Developer may file a declaration in the Records of Deeds of Lincoln County, Oregon, by January 1, 1981, so stating. In any case, no additional phase may be added more than seven years after the filing of this declaration.

13.3 Additional Common Elements. Developer does not propose to include in Phases 2, 3, 4 or 5 any common elements which would substantially increase the proportionate amount of the common expenses payable by owners of units in Phase 1.

13.4 Percentage Interest in Common Elements. The percentage interest in the common elements of units in Phase I will change if additional phases are annexed to the condominium. A chart showing the percentage interest in the common elements of each such unit upon the filing of this declaration and after the annexation of each pr000sed phase is attached hereto as Exhibit C.

IN WITNESS WHEREOF, Developer has caused this declaration to be executed this 18th day of June 1977.

County of Lincoln

On this 18th day of June,1977, personally appeared before me the above-named JOHN D. GRAY, who, being duly sworn, did say that he is the President of Salishan Hills, Inc., an Oregon corporation, and that said instrument was signed by authority of its board of directors to be its voluntary act and deed.