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STATE OF NORTH CAROLINA IN THE GENERAL COURT OF JUSTICE

SUPER10Rr«®URP-Di4aS10N
COUNTY OF BUNCOMBE CASE
^CV 01307
Kenneth J. Pierce and wife, Joan A.
M HAR2T P 2M0
Pierce, individually and as Trustees of buncombe CO.. c.s.c.
the Kenneth J. Pierce Revocable Trust
Dated December 3, 2015 and the Joan BY.
A. Pierce Revocable Trust Dated
December 3, 2015; Samuel Elias and
wife, Rosemary Elias; and Christian J.
Oliver and wife, Kim Oliver,

Plaintiffs,
COMPLAINT
vs.

Brett Krueger and wife, Carol Emily


Wilson Pesta; Nishant Mehta and wife,
Neeti Mehta; Dudley George Brown,
Jr.; Charles Andrew Caputo and wife,
Carissa Ann Brunsman, Carissa Ann
Brunsman as Trustee of the Carissa
Ann Brunsman Revocable Trust;
Michael Rivieccio and wife, Kimberly
Watterson-Rivieccio; 17 North Market
LLC; Rick Leggett and wife, Lynn
Leggett; Stepdog Properties LLC; and
ERC, LLC.

Defendants.

COMES NOW, Plaintiffs, by and through their undersigned counsel, and


complaining of Defendants, bring this action for, among other causes, a declaratory
judgment for the purpose of declaring the rights and obligations of the parties and,
further, complaining of Defendants, allege and say as follows:

1. Plaintiffs, Kenneth J. Pierce and Joan A. Pierce, are citizens and


residents of Buncombe County, North Carolina. Together, they are hereinafter
referred to as ("the Pierces")-

2. The Pierces are trustees of the Kenneth J. Pierce Revocable Trust


Dated December 3, 2015 and the Joan A. Pierce Revocable Trust Dated December 3,
2015 which are legal entities and together are the owners of that real property
known as Unit 402 of 17 North Market Street Condominiums, more particularly
described in that deed recorded on May 27, 2021 in Deed Book 6072, Page 649,
Buncombe County Registry.

3. Plaintiffs, Samuel Elias and Rosemary Elias, are citizens and residents
of Palm Beach County, Florida and together are the owners of that real property
known as Unit 203 of 17 North Market Street Condominiums, more particularly
described in that deed recorded on May 26, 2021 in Deed Book 6071, Page 1013,
Buncombe County Registry.

4. Plaintiffs, Christian J. Ohver and Kim Oliver, are citizens and


residents of Buncombe County, North Carolina and together are the owners of that
real property known as Unit 401 of 17 North Market Street Condominiums, more
particularly described in that deed recorded on August 8, 2021 in Deed Book 6105,
Page 1408, Buncombe County Registry.

5. Collectively, hereinafter, the Plaintiffs identified in Paragraphs 1-4


above are referred to as the "Plaintiffs".

6. Upon information and belief, Brett Krueger and Carol Emily Wilson
Pesta, married, are citizens and residents of Mecklenburg County, North Carolina
and together are the owners of that real property known as Unit 201 of 17 North
Market Street Condominiums, Asheville, Buncombe County, North Carolina, more
particularly described in that deed recorded on March 17, 2022 in Deed Book 6197,
Page 399, Buncombe County Registry.

7. Upon information and belief, Nishant Mehta and Neeti Mehta are
citizens and residents of Fulton County, Georgia and together are the owners of
that real property known as Unit 100 of 17 North Market Street Condominiums,
Asheville, Buncombe County, North Carolina, more particularly described in that
deed recorded on June 28, 2021 in Deed Book 6086, Page 682, Buncombe County
Registry.

8. Upon information and belief, Dudley George Brown, Jr. is a citizen and
resident of Palm Beach Cmmty, Florida and is the owner of that real property
known as Unit 101 of 17 North Market Street Condominiums, Asheville, Buncombe
County, North Carolina, more particularly described in that deed recorded on
December 29, 2021 in Deed Book 6167, Page 853, Buncombe County Registry.

9. Upon information and belief, Charles Andrew Caputo and Carissa Ann
Brunsman, married, are citizens and residents of Iredell County, North Carolina
and together are the owners of that real property known as Unit 102 of 17 North
Market Street Condominiums, Asheville, Buncombe County, North Carohna, more
particularly described in that deed recorded on May 20, 2022 in Deed Book 6221,
Page 1038, Buncombe County Registry.

10. Carissa Ann Brunsman is Trustee of the Ceurissa Ann Brunsman


Revocable Trust. Upon information and belief, said trust is a legal entity with a
principal place of business in Iredell County, North Carolina and is the owner of
that real property known as Unit 103 of 17 North Market Street Condominiums,
Asheville, Buncombe County, North Carolina, more particularly described in that
deed recorded on July 28, 2022 in Deed Book 6244, Page 39, Buncombe County
Registry.

11. Upon information and belief, Michael Rivieccio and Kimberly


Watterson-Rivieccio are citizens and residents of Palm Beach County, Florida and
together are the owners of that real property known as Unit 200 of 17 North Market
Street Condominiums, Asheville, Buncombe County, North Carolina, more
particularly described in that deed recorded on October 13, 2021 in Deed Book 6133,
Page 927, Buncombe County Registry.

12. Upon information and belief, 17 North Market LLC is a limited


liability company organized under the laws of the State of South Carolina with a
registered office at 663 Wickhams Fancy Drive, Biltmore Lake, in Buncombe
County, North Carolina. 17 North Market LLC is the owner of that real property
known as Unit 202 of 17 North Market Street Condominiums, Asheville, Buncombe
County, North Carolina, more particrdarly described in that deed recorded on
March 10, 2022 in Deed Book 6194, Page 761, Buncombe County Registry.

13. Upon information and belief. Rick Leggett and Lynn Leggett are
citizens and residents of Beaufort County, North Carolina and together are the
owners of that real property known as Unit 301 of 17 North Market Street
Condominiums, Asheville, Buncombe County, North Carolina, more particularly
described in that deed recorded on June 16, 2021 in Deed Book 6080, Page 1878,
Buncombe County Registry.

14. Upon information and belief, Stepdog Properties LLC is a limited


liability company organized under the laws of the State of North Carolina with a
principal office located at 21 Rosebay Lane, Asheville, in Buncombe County, North
Carolina. Stepdog Properties LLC is the owner of that real property known as Unit
302 of 17 North Market Street Condominiums, Asheville, Buncombe County, North
Carolina, more particularly described in that deed recorded on February 24, 2022 in
Deed Book 6188, Page 1436, Buncombe County Registry.

15. Upon information and belief, ERC, LLC is a limited liability company
organized under the laws of the State of Delaware with a registered agent located at
920 N King St. FL 2, Wilmington, Delaware, 19801. ERC, LLC is the owner of that
real property known as Unit 303 of 17 North Market Street Condominiums,
Asheville, Buncombe County, North Carolina, more particularly described in that
deed recorded on February 13, 2024 in Deed Book 6384, Page 885, Buncombe
County Registry.

16. Collectively, hereinafter, the Defendants identified in Paragraphs 6-15


above are referred to as the "Defendants".

17. This dispute concerns property located at 17 North Market Street,


Asheville, North Carolina, more particularly described in that deed recorded on
March 14, 2018 in Deed Book 5644, Page 1393, Bimcombe County Regist^. 17
North Market Street (hereinafter the "Property" or the "Condominiums") consists of
condominiums comprising thirteen (13) total Units spread over four (4) floors. Three
(3) of these Units are occupied by Plaintiffs, while ten (10) are owned by
Defendants.

18. 17 North Market Street and the surrounding area is zoned Central
Business District ("CBD"), whose purpose is to reinforce the downtown as the urban
center of Asheville and Western North Carolina, encouraging private and pubhc
investment which will preserve the Central Business District.

19. During aspects of the development of the Condominiums, on or about


March 15, 2021, Developers recorded Declaration of 17 North Market Street
Condominium ("Declaration"). The Declaration was recorded in Deed Book 6034,
Page 1913-1964 of the Bxmcombe County Register of Deeds. A true and acciurate
copy of the Declaration is attached hereto as Exhibit "1" and incorporated herein
as if fully set forth.

20. Each of the Plaintiffs purchased their respective Units with the
expectation that each Unit is subject to the Declarations, that each Unit owner was
bound by the Declarations and that no Unit could be put to a use that violates local,
state or federal rule or regulation. This understanding of each of the Plaintiffs
formed the basis for which they each purchased their Unit in the Condominium.

21. Any breach of the provisions of the Declarations diminishes the benefit
of Plaintiffs' bargain in purchasing their Unit.

22. Prior to the development of the Condominiums, on January 9, 2018,


the City of Asheville passed Ordinance No. 4637 ("Ordinance 4637"), which
amended portions of Chapter 7 of the Asheville Code of Ordinances for the purpose
of defining different lodging types, adding special requirements for certain lodging
types, and identifying in which districts they may be located. A copy of the
Ordinance is attached hereto as Exhibit "2".
23. The Ordinance defined a short-term vacation rental as a dwelling unit
with up to six guest rooms that is used and/or advertised through an online
platform, or other media, for transient occupancy for a period of less than one
month.

24. The result of this Ordinance was that a dwelling unit could only be
used as a short-term vacation rental ("STVR") in the Resort District (e.g.. Crown
Plaza, Grove Park Inn, areas around Richmond Hill).

25. Upon information and belief, in violation of Ordinance 4687, a number


of Defendants began advertising their Units as short-term rentals independently or
through agents such as Towns Property Management, Inc. and Shanti Mountain
Properties, LLC, both of Asheville, NC, and more broadly through Airbnb, VRBO,
and other online rental platforms.

26. Pursuant to Section 7-18-2 of the City of Asheville s Unified


Development Ordinances ("UDO"), upon discovering the short-term rental
violations, the City began issuing Notices of Violations to the 17 North Market
Street locations that gave the owner thirty (30) days to correct the violation and
notice that if the owner failed to either comply with the notice or file an appeal to
the Board of Adjustment within thirty (30) days, the owner may be assessed a civil
penalty of five hundred dollars ($500) per day for the number of days the
violation(s) continue. Within less than four (4) months from November 14, 2023, to
March 1, 2024, the City issued eight (8) Notices of Violation to unit owners of 17
North Market Street. These initial notices are attached hereto as Exhibit "3".

27. When Unit owners did not comply with the initial notice and continued
to violate the zoning requirements of the UDO in the above manner, a second notice
was issued resulting in a civil penalty of five hundred dollars ($500) being assessed
pursuant to Section 7-18-2(b)(l)(c) of the UDO and for each day the violation
continues. The City issued eight (8) of these notices which are attached hereto as
Exhibit "4".

28. Upon information and belief, the Unit owners have accrued varying
amounts of fines for the continued violations with the greatest fines totaling
thirteen thousand five hundred dollars ($13,500.00) as of February 28, 2024 owed
by Unit 201 to the City. The Contact Letter sent to Unit 201 is attached hereto as
Exhibit "5".

29. Upon information and belief, as a result of the ongoing fines, the Unit
owners, in violation of Ordinance 4637, began listing the Units during the day when
City staff were monitoring the hstings with a minimum stay of thirty (30) nights.
Upon information and belief, the listings were changed after 5:00 pm on weekdays
and each weekend to reflect a minimum stay of two (2) nights.
30. Notwithstanding the listing changes, upon information and belief, all
Defendants continue to rent their units for periods of time less than thirty (30) days
in violation of the Ordinance 4637.

31. Additionally, on January 9, 2024 a Level One Commercial Site


Development Permit Apphcation was submitted by Brett Krueger for 17 North
Market Street for a Change of Use from Condominiums to Hotel.

32. Plaintiffs, as Unit Owners and Kenneth J. Pierce, as a Board Member


of 17 North Market Street Owners Association ("Association"), were never informed
of the intent, desire, or formal steps taken to convert the Property use from
Condominiums to Hotel.

33. On or about January 17, 2024, the Asheville Citizen-Times pubhshed


an article titled "Asheville high-end condo owners propose hotel conversion to avoid
short-term rental fines." Plaintiffs first learned of the attempt to convert the
Condominiums to a hotel after reading the article in the Asheville Citizen-Times.

34. On or about January 26, 2024, the City of Asheville Urban Planner,
Jennifer Blevins, issued a letter to Brett Krueger after completing the initial review
of the apphcation for 17 North Market Street ("Comment Letter"). The Comment
Letter is attached hereto as Exhibit "6".

35. Thereafter, the request was assigned Project # 24-00182PZ by the City.

36. The Comment Letter relayed that the Apphcation was incomplete and
required the foUowing submissions before the City could review the requested
change of use:

a. A completed pubhc benefits table.

b. An owner's affidavit(s) signed by the owner(s) of each dwelhng unit


located in the building.

c. An owner's affidavit signed by an authorized representative of the


Homeowners Association.

First Cause of Action


Breach of Contract

37. The allegations contained in Paragraphs 1 through 36 above are


reaUeged and incorporated herein as if fuUy set forth.

6
38. "Covenants accompanying the purchase of real property are contracts
which create private incorporeal rights, meaning non-possessory rights held by the
seller, a third-party, or a group of people, to use or limit the use of the purchased
property." Wein II, LLC v. Porter, 198 N.C. App. 472, 479, 683 S.C.2d 707, 712
(2009).

39. "Judicial enforcement of a covenant will occur as it would in an action


for enforcement of 'any other valid contractual relationship.'" Id.
40. The Declaration is a valid and enforceable contract to which Plaintiffs
and Defendants are parties.

41. The Declaration provides that "[a]ll such rules, regulations,


restrictions, covenants, conditions, uses and obligations are declared and agreed to
be in furtherance of a plan for the creation of the Condominium and the use,
enjoyment and rental of condominium units and shall be deemed to run with the
land and be a burden on and a benefit to the Declarant, its successors and assigns,
and on and to any Person acquiring or owning any interest in the real property in
the Condominium and any improvements thereto, and such parties' grantees,
successors, heirs, assigns, executors, administrators and devisees."

42. Exhibit D, Paragraph 1 to the Declaration of 17 North Market Street


states that "[t]he property . . . shall be used only for single family residential,
recreational, and related purposes .. . subject to all applicable laws.

43. Paragraph 5(a) of Exhibit D of the Declaration prohibits within the


Condominium "[a]ny activity which violates local, state or federal law or
regulations."

44. Upon information and belief. Defendants breached the Declaration in


the following manner:

a. Violating the restrictive covenant limiting the use of the Units for
single family residential, recreational and related purposes by renting
the Units as short-term rentals for transient purposes; and

b. Engaging in the short-term rental of their Units in violation of local


law. City of Asheville Ordinance 4637.

45. Defendants' ongoing breach of the Declaration by using their Units for
short-term rentals diminishes the benefit of Plaintiffs' expectation in piurchasmg
their individual Unit and will result and has resulted in damage to Plaintiffs which
no remedy is available at law.
Second Cause of Action
Declaratory Judgment

46. The allegations contained in Paragraphs 1 through 45 above are


realleged and incorporated herein as if fiilly set forth.

47. N.C. Gen. Stat. § 1-254 provides that any person interested under a
deed, will, written contract or other writings constituting a contract, or whose
rights, status or other legal relations are affected by a statute, municipal ordinance,
contract or franchise, may have determined any question of construction or validity
arising under the instrument, statute, ordinance, contract, or franchise, and obtain
a declaration of rights, status, or other legal relations thereunder. A contract may
be construed either before or after there has been a breach thereof.

48. "[C]learly and narrowly drawn restrictive covenants may be employed


in such a way that the legitimate objectives of a development scheme may be
achieved." J.T. Hobby & Sons, Inc. v. Family Homes of Wake County, Inc., 302 N.C.
64, 70, 274 S.E.2d 174, 179 (1981).

49. Exhibit D, Paragraph 1 to the Declaration states that "[t]he property ..


. shall be used only for single family residential, recreational, and related purposes .
.. subject to all apphcable laws."

50. "Single family" for the purposes of a restrictive covenant turns on the
integrated unit test to determine whether the occupants function as an integrated
unit or independent persons which determination must consider whether the group
of unrelated persons are not transient but rather intend to reside as a stable unit
for an indefinite period of time. Danaher v. Joffe, 184 N.C. App. 642, 649-50, 646
S.E.2d 783, 788-89 (2007) (Greer, J., concurring).

51. "Our courts have previously implied that the term 'family' should be
construed to exclude 'independent persons who share only the place where they
sleep and take their meals' and are not an 'integrated unit.'" Id. at 646-47, 646
S.E.2d at 786.

52. Accordingly, Defendants use of the property in a transient manner as


the occupants do not intend to reside as a stable unit for an indefinite period of time
therefore violates the single family use restriction of the Declaration.

53. As such, a dispute has developed between Plaintiffs and Defendants as


to whether the individual Units which comprise the Condominiums may be used for
short-term rental purposes and potentially used as a hotel.

8
54. Because of the dispute, Plaintiffs seek the Court's determination as to
whether the Declaration prohibits use of the Units as short-term rentals and as a
hotel use.

Third Cause of Action


Preliminary and Permanent Injunction

55. The allegations contained in Paragraphs 1 through 54 above are


realleged and incorporated herein as if fully set forth.

56. In that Defendants' use of their Units for short-term rentals violates
City Ordinance 4637, and thereby the Declarations, Plaintiffs have shown a
likelihood of success on the merits of their claim.

57. Continued use of the Units by Defendants for short-term rental has
caused Plaintiffs to sustain irreparable loss by diminishing the benefit of their
bargain in purchasing their Units.

58. There is no adequate remedy at law for such damage and an injunction
is necessary for the protection of Plaintiffs' rights during the pendency of this
litigation.

59. Upon information and belief, without injunctive relief, the rental
violations will resume and persist in the unchanged pattern they have occurred,
being absent during business hours and present after 5:00 pm on weekdays and
weekends.

60. Therefore, the actions of Defendants in utilizing the Units for short-
term rentals and applying for a hotel designation entitles Plaintiffs to a preliminary
and permanent injunction which enjoins Defendants from any use that violates the
Declaration or Ordinance 4637 including short-term rentals and the hotel use
applied for.

WHEREFORE, Plaintiffs pray the Coxirt as follows:

1. That the Court declare each parties rights under the Declaration;

2. That the Court declare that Defendants have breached the relevant
provisions of the Declarations;

3. That the Court grant a preliminary and permanent injunction that enjoins
Defendants from any use that violates local law or the relevant provisions of
the Declarations;
4. That the Court order the Defendants to pay all costs of this action, including
reasonable attorney's fees, where allowed by law; and

5. That the Court grant to Plaintiffs such other and further relief as the Court
deems just and proper.

This the day of March, 2024.

VAN WINKLE/BUC^, WALL,


STARNES & DAyiJS, P.A.

Brian D. Gulden
NC Bar #29243
P.O. Box 7376
AsheviUe, NC 28802-7376
Telephone: 828-258-2991
Attorney for Plaintiffs

10
Page 1 of 52

III
Doc ID: 034585950052 Type: GRP ^ _
Recorded: 03/15/2021 at 02:26:46 PM
Fee Amt: $174.00 Pago 1 of 52
Workflow# 0000673577-0002
Buncombe County, NO
Drew Relslnger Register of Deeds

bk6034p4913-1964

DECLARATION OF
17 NORTH MARKET STREET CONDOMINIUM

BELLFIELD 417 MARKET, LLC


Developer and Declarant

THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF POLITICAL


SIGNS.

Prepared by and return to Ward AND Smith, P.A., 127 Racine Drive, \d
Wilmington, NC 28406-7068

EXHIBIT

Book: 6034 Page: 1913 Page 1 of 52


Page 2 of 52

TABLE OF CONTENTS

ARTICLE 1- ESTABLISHMENT OF CONDOMINIUM 2

ARTICLE 2 - SURVEY PLATS AND PLANS 2

ARTICLE 3 - DEFINITIONS 2
Sections.! Act 2
Section 3.2 Articles of Incorporation 2
Section 3.3 Association 2
Section 3.4 Association Documents 3
Section 3.5 Board of Directors or Board 3
Section 3.6 Business or Trade 3
Section 3.7 Bylaws 3
Section 3.8 Common Elements 3
Section 3.9 Common Expenses 3
Section 3.10 Condominium 3
Section 3.11 Condominium Units 3
Section 3.12 Dec larant 4
Section 3.13 Dec laration 4
Section 3.14 Development Period 4
Section 3.15 Development Rights 4
Section 3.16 Director 4
Section 3.17 Limited Common Elements 4
Section 3.18 Member 4
Section 3.19 Mortgage 5
Section 3.20 Mortgagee 5
Section 3.21 Person 5
Section 3.22 Property 5
Section 3.23 Register of Deeds 5
Section 3.24 Unit Owner 5
Section 3.25 Upkeep 5
Section 3.26 Use Restrictions 5
Section 3.27 Utility Company 5

ARTICLE 4 - ALLOCATION OF COMMON ELEMENT INTERESTS,


COMMON EXPENSE LIABILITIES AND VOTES 5
Section 4.1 Common Elements Allocation 5
Section 4.2 Common Expense Allocation 6
Section 4.3 Voting Allocation 6
Section 4.4 Limited Common Element Parking Spaces 6

Book: 6034 Page: 1913 Page 2 of 52


Page 3 of 52

ARTICLE 5 - INTENTIONALLY OMITTED 6

ARTICLE 6 - PLAN OF DEVELOPMENT, USE RESTRICTIONS AND


ENCUMBRANCES 6
Section 6.1 Plan of Development: Applicability: Effect 6
Section 6.2 Authority to Promulgate Use Restrictions and Rules
Section 6.3 Owners' Acknowledgment
Section 6.4 Use Restrictions
Section 6.5 Restraint on Transfer of Units as Timeshares

ARTICLE 7 - EASEMENTS
Section 7.1 Easements-Common Areas
Section 7.2 Easements-Units 8
Section 7.3 Reserved Declarant Easements 8

ARTICLE 8 - EASEMENT FOR UNINTENTIONAL AND


NON-NEGLIGENT ENCROACHMENTS 8
Section 8.1 Existing Encroachments 8
Section 8.2 Reconstruction 8

ARTICLE 9 - ADMINISTRATION OF THE CONDOMINIUM BY 9


Section 9.1 Creation/Organization 9
Section 9.2 Members 9
Section 9.3 Administration by Association 9

ARTICLE 10 - ASSOCIATION RIGHTS, OBLIGATIONS AND SERVICES 9


Section 10.1 Implied Rights; Board Authority 9
Section 10.2 Dedication of Common Elements 10
Section 10.3 Disclaimer of Liability 10
Section 10.4 Safety 10
Section 10.5 Provision of Services 11
Section 10.6 Change of Use of Common Elements 11
Section 10.7 View Impairment 12
Section 10.8 Relationship with Tax-Exempt Organizations 12

Book: 6034 Page: 1913 Page 3 of 52


Page 4 of 52

ARTICLE 11 - INTENTIONALLY OMITTED 12

ARTICLE 12 - INTENTIONALLY OMITTED 12

ARTICLE 13 - RIGHT OF ENTRY IN EMERGENCIES 12

ARTICLE 14 - RIGHT OF ENTRY FOR MAINTENANCE OF COMMON


ELEMENTS 13

ARTICLE 15 - LIMITATION UPON RIGHT OF OWNERS TO ALTER


AND MODIFY UNITS; NO RIGHT TO ALTER
COMMON ELEMENTS 13
Section 15.1 Alteration of Units 13
Section 15.2 Common Elements Appurtenant to Units 13
Section 15.3 Consent to Modification of Units 14
Section 15.4 Floor Covering 14
Section 15.5 Indemnification-Unit Modification 15

ARTICLE 16 - MAINTENANCE AND REPAIR BY OWNERS OF UNITS 15


Section 16.1 Owner Upkeep of Units 15
Section 16.2 Maintenance-Insurance Proceeds 15
Section 16.3 Limited Common Elements 15

ARTICLE t7 - MAINTENANCE AND REPAIR OF COMMON


ELEMENTS 16
Section 17.1 Association Upkeep of Common Elements 16
Section 17.2 Maintenance Standard 16
Section 17.3 Damage Caused by Owner 16
Section 17.4 Liability for Damage 16

ARTICLE 18 - AUTHORITY TO PURCHASE INSURANCE 17

ARTICLE 19 - INSURANCE COVERAGE TO BE MAINTAINED; USE


AND DISTRIBUTION OF INSURANCE PROCEEDS 17
Section 19.1 Insurance Coverages 17
Section 19.2 Premiums - Common Expenses 18
Section 19.3 Deductibles 18
Section 19.4 Insurance Claim Adjustment 18
Section 19.5 Mortgagee-Insurance Proceeds 18
Section 19.6 Use of Insurance Proceeds 18
Section 19.7 Reimbursement of Initial Insurance Premiums 19
Section 19.8 Insurance Policy Requirements 19
Section 19.9 Insurance Coverage-Betterments 19
Section 19.10 Insurance Availability Notification 20
Section 19.11 Fidelity Insurance 20

III

Book: 6034 Page: 1913 Page 4 of 52


Page 5 of 52

ARTICLE 20 - RECONSTRUCTION OR REPAIR OF CASUALTY


DAMAGE 20
Section 20.1 Reconstruction-Costs 20
Section 20.2 Estimates of Replacement Costs 20
Section 20.3 Priority of Repair 21
Section 20.4 Association Right to Insurance Adjustments 21
ARTICLE 21 - ASSOCIATION TO MAINTAIN REGISTER OF OWNERS
AND MORTGAGEES 21
Section 21.1 Register of Owners and Mortgagees 21
Section 21.2 Mortgage Provisions 21
ARTICLE 22 - ASSESSMENTS: LIABILITY, LIEN AND ENFORCEMENT 22
Section 22.1 Levy of Assessments 22
Section 22.2 Assessments - Limited Common Elements 23
Section 22.3 Payment of Assessments 23
Section 22.4 Association Budget 23
Section 22.5 Capital Improvement Fund 23
Section 22.6 Assessments-Association Property 24
Section 22.7 Delinquent Assessments 24
Section 22.8 Liability for Assessments 25
Section 22.9 Lien for Assessments 25
Section 22.10 Statement of Assessment Status 26
Section 22.11 Election of Collection Remedies 26
Section 22.12 Initial Contribution to Working Capital Fund 26
ARTICLE 23 - COMPLIANCE AND ENFORCEMENT 27
Section 23.1 Initial Contribution to Working Capital Fund 27
Section 23.2 Enforcement/Sanctions 27
Section 23.3 Hearing Procedures 27
Section 23.4 Self Help Remedies 28
Section 23.5 Cumulative Remedies/Attorneys' Fees 29
Section 23.6 Association's Right Not to Take Action 29
Section 23.7 Enforcement by Owner 29
ARTICLE 24 - COMMON SURPLUS 30

ARTICLE 25 - TERMINATION 30

ARTICLE 26 - AMENDMENT OF DECLARATION OF CONDOMINIUM 30


Section 26.1 Amendments Proposed by Association 30
Section 26.2 Amendments by Declarant 31
Section 26.3 Amendments Requiring Declarant Consent 31
Section 26.4 Amendments of a Material Nature 31
Section 26.5 Amendments Requiring Consent of Lienholder 32

IV

Book: 6034 Page: 1913 Page 5 of 52


Page 6 of 52
(O

ARTICLE 27 - SPECIAL DECLARANT RIGHTS AND DEVELOPMENT


RIGHTS RESERVED UNTO DECLARANT 33
Section 27.1 Special Declarant Rights Reserved by Declarant 33
Section 27.2 Development Rights Reserved by Declarant 34
Section 27.3 Limitation on Special Declarant Rights 34
Section 27.4 Declarant's Personal Property 34
Section 27.5 Phasing of Development Rights 34
Section 27.6 Interference with Special Declarant Rights and Development Rights 34
Section 27.7 Assignment of Declarant's Rights and Duties 35
Section 27.8 Assignment of Declarant's Rights to Lienholder or Purchaser at
Foreclosure Sale 35

ARTICLE 28 - CONFLICT WITH CONDOMINIUM ACT;


SEVERABILITY 35

ARTICLE 29 - LIBERAL CONSTRUCTION 35

ARTICLE 30 - DECLARATION BINDING ON ASSIGNS AND


SUBSEQUENT OWNERS 35

ARTICLE 31 - ASSOCIATION RECORDS/INSPECTION 35

ARTICLE 32 - CONDEMNATION 35

ARTICLE 33-TAXES 35

ARTICLE 34 - LITIGATION 35

Book: 6034 Page: 1913 Page 6 of 52


Page 7 of 52
7

THIS DECLARATION OF 17 NORTH MARKET STREET CONDOMINIUM


(hereinafter referred to as the "Declaration"), made this the day of . 2021,
by BELLFIELD 417 MARKET, LLC, a Virginia limited liability company (hereinafter referred
to as "Declarant"), pursuant to the provisions of Chapter 47C of the General Statutes of the State
of North Carolina (sometimes hereinafter referred to as the "Condominium Act" or the "Act") to
All Prospective Purchasers or Owners of property described herein;
WITNESSETH:

WHEREAS, Declarant is the owner in fee simple of certain real estate located in
Buncombe County, North Carolina, said real estate being more particularly described on
Exhibit A attached hereto and incorporated herein by reference; and,

WHEREAS, Declarant has constructed on the property described on Exhibit A


one (I) building, containing thirteen (13) condominium units, and appurtenant facilities; and,
WHEREAS, it is the desire of the Declarant to submit the property described on
Exhibit A. together with the improvements thereon constructed and easements appurtenant
thereto, to the provisions of the Act to provide for the condominium form of ownership; and,
WHEREAS, Declarant hereby establishes by this Declaration a plan for the
individual ownership of condominium units and the co-ownership by individual and separate
owners thereof, as tenants in common, of all of the remaining property in the condominium (all
portions of the Condominium except the condominium units hereinafter being referred to as
"Common Elements").

NOW, THEREFORE, Declarant does hereby declare that the property described
on Exhibit A attached hereto and incorporated herein by reference shall be held, conveyed,
encumbered, used, occupied, improved, sold, mortgaged, and otherwise conveyed subject to the
rules, regulations, restrictions, covenants, conditions, uses and obligations set forth in this
Declaration. All such rules, regulations, restrictions, covenants, conditions, uses and obligations
are declared and agreed to be in furtherance of a plan for the creation of the Condominium and
the use, enjoyment and rental of condominium units and shall be deemed to run with the land and
be a burden on and a benefit to the Declarant, its successors and assigns, and on and to any
Person acquiring or owning any interest in the real property in the Condominium and any
improvements thereto, and such parties' grantees, successors, heirs, assigns, executors,
administrators and devisees. Individual Owners, their employees, guests, tenants and all persons
using or possessing any property within the Condominium are subject to the provisions of this
Declaration.

Book: 6034 Page: 1913 Page 7 of 52


Page 8 of 52

ARTICLE I.

ESTABLISHMENT OF CONDOMINIUM

On that property described on Exhibit A. attached hereto and incorporated herein


by reference, there exists a building containing thirteen (13) Units, and other appurtenant
improvements. Declarant does hereby submit the real property, and the improvements lying
within the land area described on Exhibit A to condominium ownership under the provisions of
the Act, and hereby declares the same to be a condominium to be known and identified as "17
North Market Street Condominium." The maximum number of Units which the Declarant
reserves the irght to create is thirteen (13). No additional real estate will be allocated
subsequently as Limited Common Elements. The Condominium is located in Buncombe
County, North Carolina.

ARTICLE 2.

SURVEY PLATS AND PLANS

A survey of the land and plat and plans of the improvements constituting the
Condominium identifying the Units, the Common Elements and the Limited Common Elements,
as said terms are herein defined, and containing the information required by N.C. Gen. Stat.
§ 47C-2-109(b) and (c) is recorded in the office of the Register of Deeds of Buncombe County in
the map book identified in Exhibit B. said survey and plat and plans being incorporated herein by
reference. Said survey and plat and plans are sometimes collectively referred to herein as
Exhibit B or "Condominium Plat". I^ch Unit is identified by a specific number on Exhibit B.
and no Unit bears the same number as any other Unit. The Units are numbered 100,101,102,
103,200,201,202,203,301,302,303,401, and 402 as shown on Exhibit B.

ARTICLE 3.

DEFINITIONS

As used in this Declaration and the exhibits attached hereto, the Bylaws, the
Articles of Incorporation, and all amendments thereof, unless the context requires otherwise, the
following definitions shall prevail:

Section 3.1 Act. "Act" means Chapter 47C of the General Statutes of North
Carolina designated as the North Carolina Condominium Act.

Section 3.2 Articles of Incorporation. "Articles of Incorporation" means the


Articles of Incorporation for 17 North Market Street Owners Association filed in the office of the
Secretary of State of North Carolina.

Section 3.3 Association. "Association" means the Owners association


organized pursuant to the Act and incorporated under Chapter 55A of the General Statutes of

Book: 6034 Page: 1913 Page 8 of 52


Page 9 of 52

North Carolina, and shall be known as 17 North Market Street Owners Association, and its
successor.

Section 3.4 Association Documents. "Association Documents" means


collectively the Articles of Incorporation, the Bylaws, this Declaration, the Rules and
Regulations adopted by the Association, and resolutions of the Board of Directors, all as may be
amended, restated and revised from time to time. Any exhibit, schedule, or amendment to an
Association Document shall be considered a part of that document.

Section 3.5 Board of Directors or Board. "Board of Directors" or "Board"


means the body responsible for administration of the Association selected as provided in the
Bylaws.
Section 3.6 Business or Trade. "Business" or "Trade" means their ordinary,
generally accepted meanings and shall include, without limitation, any occupation, work, or
activity undertaken on an ongoing basis which involves the provision of goods or services to
Persons other than the family of the producer of such goods or services and for which the
producer receives a fee, compensation, or other form of consideration, regardless of whether:
(a) such activity is engaged in full or part-time, (b) such activity is intended to or does generate a
profit, or (c) a license is required.
Section 3.7 Bvlaws. "Bylaws" means the Bylaws of the Association as they
may be amended from time to time.
Section 3.8 Common Elements. "Common Elements" means and comprise
(i) all of the real property, improvements and facilities of the Condominium, excluding however
the Units as herein defined, (ii) all personal property and equipment held and maintained for the
joint use and enjoyment of all the Owners of Units, and (iii) all permits for construction,
maintenance and operation of the Condominium assigned by Declarant to the Association or
otherwise procured or acquired by the Association.
Notwithstanding this definition, to the extent that the provisions of the Act apply
to "Common Elements," including, without limitation, the provisions of Section 47C-3-112,
those provisions shall apply only to the "Common Elements" as defined in the Act.
Section 3.9 Common Expenses. "Common Expenses" means expenditures
made by or financial liabilities of the Association, together with any allocations to reserves.
Section 3.10 Condominium. "Condominium" means the Property described
on Exhibit A. easements appurtenant to the Property, all buildings and improvements existing
thereon or hereinafter constructed thereon.

Section 3.11 Condominium Units. "Condominium Units" or "Units," as such


terms are used herein, means a physical portion of the Condominium designated for separate

Book: 6034 Page: 1913 Page 9 of 52


Page 10 of 52
P

ownership, the boundaries of which are hereinafter defined and shown on Exhibit B. The walls,
floors, and ceilings of the Units hereby are designated as the boundaries of each respective Unit.
Except as otherwise modified herein, the provisions of N.C. Gen. Stat.
§ 47C-2-102(1), (2), (3), and (4) are incorporated herein by reference.
Section 3.12 Declarant. "Declarant" means Bellfield 417 Market, LLC, its
successors and assigns, and any Person or entity who succeeds to any Special Declarant Rights
as provided herein or pursuant to the Condominium Act.
Section 3.13 Declaration. "Declaration" means this instrument and any
amendments thereto.

Section 3.14 Development Period. "Development Period" means the period


ending on the earliest of (a) seven (7) years from the date this Declaration is recorded in the
Register of Deeds; provided, that if Declarant is delayed in the improvement and development of
the Property as a result of a sewer, water or building permit moratorium or other cause or event
beyond Declarant's control, then the aforesaid period shall be extended for the length of the delay
plus an additional two (2) years upon written notice to the Association of such extension; or
(b) the date specified by Declarant in a written notice to the Association that the Development
Period is to terminate on that date so stated.

Section 3.15 Development Rights. "Development Rights" means the rights


reserved by Declarant under Article 27 of this Declaration.
Section 3.16 Director. "Director" means a member of the Board of the
Association.

Section 3.17 Limited Common Elements. "Limited Common Elements"


means those portions of the Common Elements allocated by operation of N.C. Gen. Stat.
§ 47C-2-102 for the exclusive use of one or more but fewer than all of the Units, including,
without limitation, parking spaces located within or under the building, those portions of the
Common Elements described in this Declaration as Limited Common Elements, and those
portions of the Common Elements designated as Limited Common Elements on the
Condominium Plat. Parking spaces shown and designated on the Condominium Plat shall be
Limited Common Elements allocated to specified Units by deed.

Supplementing the provisions of N.C. Gen. Stat. § 47C-2-102(4), all exterior


doors and door frames, except screen doors or storm doors as may have been permitted by the
Association, exterior windows and window frames, and all related components of the exterior
doors and exterior windows including glass, panes and screens, shall be Limited Common
Elements, and are specifically allocated to the Units in which they are installed.

Section 3.18 Member. "Member" means a Person having membership in the


Association consistent with Article 9 of this Declaration.

Book: 6034 Page: 1913 Page 10 of 52


Page 11 of 52

Section 3.19 Mortgage. "Mortgage" means a mortgage, a deed of trust, a deed


to secure debt, or any other form of security deed.

Section 3.20 Mortgagee. "Mortgagee" means a beneficiary or holder of a


Mortgage.

Section 3.21 Person. "Person" means a natural person, limited liability


company, corporation, business trust, estate, trust, partnership, association, joint venture,
government, governmental subdivision or agency, or other legal or commercial entity or any
combination thereof.

Section 3.22 Propertv. "Property" means the real estate described on


Exhibit A. together with all rights, privileges, easements and appurtenances belonging to or in
any way pertaining to said real estate.

Section 3.23 Register of Deeds. "Register of Deeds" means the office of the
Register of Deeds of Buncombe County, North Carolina.

Section 3.24 Unit Owner. "Unit Owner" or "Owner" means any Person
owning one or more Units, but shall not include a Mortgagee unless such Mortgagee has
acquired title pursuant to foreclosure or some other process in lieu of foreclosure.

Section 3.25 Upkeep. "Upkeep" means care, inspection, maintenance,


operation, repair, repainting, remodeling, restoration, improvement, renovation, alteration,
replacement and reconstruction.
Section 3.26 Use Restrictions. "Use Restrictions" means the rules and use
restrictions more fully defined as set forth in Section 6.4.

Section 3.27 Utilitv Companv. "Utility Company" means a public or private


company or entity duly licensed and authorized by the North Carolina Utilities Commission to
provide utility services within a specified franchise area and any entity providing utility services
on behalf of a body politic, municipality or other governmental body or entity.

Any word not defined herein, unless it is plainly evident from the context of this
Declaration that a different meaning is intended, shall, as used herein, have the meaning set out
in N.C. Gen. Stat. § 47C-1-103.
ARTICLE 4.

ALLOCATION OF COMMON ELEMENT INTERESTS. COMMON EXPENSE LIABILITIES


AND VOTES

Section 4.1 Common Elements Allocation. Each Unit shall be conveyed and
treated as an individual property capable of independent use and fee simple ownership, and the

Book: 6034 Page: 1913 Page 11 of 52


Page 12 of 52

Owner of each Unit also shall own, as an appurtenance to the ownership of said Unit, an
undivided interest in the Common Elements. The proportional interest in the Common Elements
allocated to each of the Units which presently exists, subject to amendment as provided herein,
shall be determined by the quotient of the total heated square footage of each Unit presently
existing in the Condominium divided by the total heated square footage of all of the Units within
the entire Condominium, expressed as a percentage. Declarant has determined the heated square
footage of the Units, which determination shall be conclusive. The allocation for each Unit,
together with the total heated square footage of each Unit, is set forth in Exhibit C attached
hereto and made a part hereof.

Section 4.2 Common Expense Allocation. The portion of the Common


Expenses of the Association allocated to each Unit is based upon the same formula used to
determine the proportional interest in the Common Elements allocated to each Unit and is as set
out in Section 4.1 above and in Exhibit C.

Section 4.3 Voting Allocation. The vote in the Association allocated to each
Unit shall be equal and shall be one (I) vote per Unit.
Section 4.4 Limited Common Element Parking Spaces. Limited Common
Element parking spaces, as depicted on the Condominium Plat, shall be allocated to a particular
Unit by deed from Declarant. Limited Common Element parking spaces may be reallocated
pursuant toN.C. Gen. Stat. § 47C-2-108.
ARTICLE 5.

Intentionallv Omitted

ARTICLE 6.

PLAN OF DEVELOPMENT. USE RESTRICTIONS AND ENCUMBRANCES

Section 6.1 Plan of Development: Applicabilitv: Effect. Declarant has


established a general plan of development and occupancy for the Property under this Declaration
in order to protect all Owners' quality of life and collective interests, the aesthetic and
environmental quality within the Property, and the vitality of and sense of community within the
Property, all subject to the Board's and the Members' ability to respond to changes in
circumstances, conditions, needs, and desires within the community.

This Declaration, including the Use Restrictions, attached as Exhibit D. and the
rules and resolutions adopted by the Board establish affirmative and negative covenants,
easements, and restrictions on the Property.

All provisions of the Association Documents shall apply to all Owners, their
family members, occupants, tenants, guests and invitees.

Book: 6034 Page: 1913 Page 12 of 52


Page 13 of 52
13'

Section 6.2 Authority to Promulgate Rules

(a) Subject to the terms of this Article and in accordance with its duty of
care and undivided loyalty to the Association and its Members, the Board may adopt additional
rules not inconsistent with the Use Restrictions set forth in Exhibit D hereof, and other such rules
and regulations permitted by, and not inconsistent with, the Act.
(b) At least fifteen (15) days prior to the effective date of any action
under subsection (a) of this Section, the Board shall send a copy of the rule to each Owner
specifying the effective date of such rule. The Association shall provide, without cost, a copy of
the rules then in effect to any requesting Member or Mortgagee.

(c) Nothing in this Article shall authorize the Board to modify, repeal or
expand the Association Documents except as such documents may be amended as provided
therein.

Section 6.3 Owners* Acknowledgment. All Owners are subject to the Use
Restrictions and are given notice that (a) their ability to use their privately owned property is
limited thereby, and (b) the Board may adopt, delete, modify, create exceptions to, or amend the
rules.

Each Owner by acceptance of a deed acknowledges and agrees that the use and
enjoyment and marketability of his or her property can be affected by this provision and that the
Use Restrictions and rules may change from time to time.

Section 6.4 Use Restrictions. The Units and Common Elements are declared
to be subject to the restrictions, easements, conditions and limitations now of record affecting the
land and improvements of the Condominium and those set forth in the Use Restrictions attached
hereto at Exhibit D.

Section 6.5 Restraint on Transfer of Units as Timeshares. No Owner shall


transfer any portion of or all of his interest in a Unit for a timesharing, fractional interest sharing
or similar program whereby the irght to exclusive use of the Unit rotates among participants in
the program on a fixed or floating time schedule over a period of years.
ARTICLE 7.

EASEMENTS

Section 7.1 Easements-Common Areas. Subject to the Special Declarant


Rights reserved to Declarant in this Declaration and the provisions of N.C. Gen. Stat.
§ 47C-3-112, all of the Common Elements, except the Limited Common Elements, shall be, and
the same are hereby declared to be, subject to a perpetual non-exclusive easement in favor of all
of the Owners of Units in the Condominium for their use and the use of their tenants, guests,
invitees and customers, for all proper and normal purposes, and for the furnishing of services and

Book: 6034 Page: 1913 Page 13 of 52


Page 14 of 52

facilities for which the same are reasonably intended for the use and enjoyment of the Units.
Notwithstanding the foregoing, Owners' and their tenants', guests', invitees', and customers'
easement over the Common Elements is subject to rules and regulations promulgated by the
Board that may prohibit or restrict the use of the Common Elements, including rules and
regulations that prohibit tenants from accessing the rooftop without the prior consent of the
Board and rules and regulations that otherwise restrict the use of the Common Elements,
including the rooftop.

Section 7.2 Easements-Units. Each Owner hereby is granted a perpetual


easement to locate heating and air conditioning systems and related equipment and other utilities
upon the Common Elements. When so located, such heating and air conditioning systems,
utilities, related pipes, ducts, conduits, wires and related facilities and equipment shall become
and be deemed to be a part of the respective Unit to which they are affixed or serve. Prior to
installing any heating and air conditioning systems, utilities or any facilities and equipment in the
Common Elements, the Owner shall obtain the consent of the Association as provided in
Article 15 herein. This provision shall not apply to the heating and air conditioning systems and
facilities and underground propane tanks which are presently located in the Common Elements
and any replacements thereto or any heating and air conditioning systems and facilities and
underground propane tanks.

Section 7.3 Reserved Declarant Easements. Declarant, its successors and


assigns, reserves a perpetual non-exclusive easement, over, upon and across the Property,
including the Common Elements, said easement hereby reserved to be for any and all purposes
deemed desirable by Declarant, its successors and assigns, including, but not limited to, (i) the
installation, maintenance, repair and replacement of utilities and other services and (ii) pedestrian
and vehicular access to other property without regard to whether such other property is
contiguous to the Condominium or owned by the Declarant.
ARTICLE 8.

EASEMENT FOR UNINTENTIONAL AND


NON-NEGLIGENT ENCROACHMENTS

Section 8.1 Existing Encroachments. In the event that any Unit shall
encroach upon any Common Elements for any reason not caused by the purposeful or negligent
act of the Owner, or agents of such Owner, then an easement appurtenant to such Unit shall exist
for the continuance of such encroachment upon the Common Elements for so long as such
encroachment naturally shall exist. In the event that any portion of the Common Elements shall
encroach upon any Unit, then an easement shall exist for the continuance of such encroachment
of the Common Elements upon any Unit for so long as such encroachment naturally shall exist.

Section 8.2 Reconstruction. If any Unit or Common Elements 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 if upon reconstruction of such Unit and/or Common Elements
in accordance with Article 20 hereof, there exist encroachments of portions of the Common

Book: 6034 Page: 1913 Page 14 of 52


Page 15 of 52
)5

Elements upon any Unit, or of any Unit upon any portion of the Common Elements, then such
encroachments shall be permitted and a valid easement for the maintenance thereof shall exist so
long as such encroachments naturally shall remain.
ARTICLE 9.

ADMINISTRATION OF THE CONDOMINIUM BY rASSOCIATIONl

Section 9.1 Creation/Organization. To efficiently and effectively provide for


the administration of the Condominium by the Owners of the Units, an association of all Owners
has been incorporated pursuant to Chapter 55A of the General Statutes of North Carolina known
and designated as 17 North Market Street Owners Association.
Section 9.2 Members. The Owner or Owners of each Unit automatically
shall become members of said Association upon his, their or its acqpisition of an ownership
interest in title to any Unit and its appurtenant undivided interest in Common Elements, and the
membership of such Owners or Owner shall terminate automatically upon such Owner or
Owners being divested of such ownership interest in the title to such Unit, regardless of the
means by which such ownership may be divested. No Person holding any lien. Mortgage or
other encumbrance upon any Unit shall be entitled, by virtue of such lien, Mortgage or other
encumbrance, to membership in said Association or to any of the rights or privileges of such
membership.
Section 9.3 Administration bv Association. The Association shall administer
the operation and management of the Condominium and undertake and perform all acts and
duties incident thereto in accordance with the terms of the Association Documents and the Act
Subject to the provisions of the Act, the Association shall have and is hereby granted the
authority and power to enforce the provisions of this Declaration, to levy and to collect
assessments in the manner hereinafter provided, to adopt, promulgate and enforce such rules and
regulations governing the use of the Common Elements as the Board of Directors of said
Association may deem to be in the best interests of the Association and to exercise such other
powers as set forth in N.C. Gen. Stat. § 47C-3-102, including the right to assign future
assessments, assessment rights and income of the Association.
ARTICLE 10.

ASSOCIATION RIGHTS. OBLIGATIONS AND SERVICES.

Section 10.1 Implied Rights: Board Authoritv. The Association may exercise
any right or privilege given to it expressly by the Association Documents and the Act or which
may be reasonably implied from, or reasonably necessary to effectuate, any such right or
privilege. Except as otherwise specifically provided in the Association Documents, or by law,
all rights and powers of the Association may be exercised by the Board without a vote of the
membership.

Book: 6034 Page: 1913 Page 15 of 52


Page 16 of 52

lb

Section 10.2 Dedication of Common Elements. The Association may dedicate


or grant easements over portions of the Common Elements, including the grant of easements to
any local, state, or federal governmental entity or any Utility Company.
Section 10.3 Disclaimer of Liabilitv. The Association may, but shall not be
obligated to, maintain or support certain activities wi^in the Property designed to promote the
health, safety and welfare of Owners and occupants of any Unit.

(a) Notwithstanding anything contained herein or in the Association


Documents or the Act, neither the Association, the Board, committees of the Association, the
management company of the Association, Declarant nor any successor Declarant (collectively,
the "Released Parties") shall be liable or responsible for, or in any manner a guarantor or insurer
of, the health, safety or welfare of any Owner or occupant of any Unit or any tenant, guest or
invitee of any Owner or occupant or for any property of any such Persons. Each Owner and
occupant of a Unit and each tenant, guest and invitee of any Owner or occupant shall assume all
risks associated with the use and enjoyment of the Property, including all Common Elements.

(b) No provision of the Association Documents shall be interpreted as


creating a duty of the Released Parties to protect or further the health, safety or welfare of any
Person(s), even if the funds of the Association are used for any such purpose.

Each Owner (by virtue of his or her acceptance of title to his or her Unit) and
each other Person having an interest in or lien upon, or making any use of, any portion of the
Property (by virtue of accepting such interest or lien or making such use) shall be bound by this
Section and shall be deemed to have waived any and all rights, claims, demands and causes of
action against the Released Parties, their directors, officers, committee and Board members,
employees, agents, contractors, subcontractors, successors and assigns arising from or connected
with any matter for which the liability has been disclaimed.

Section 10.4 Safety. The Association may maintain or support certain


activities within the Property designed to provide a greater level of safety than exists within the
Property.

(a) None of the Released Parties shall in any way be considered insurers
or guarantors of safety within the Property. None of the Released Parties shall be held liable for
any loss or damage for failure to provide adequate safety or ineffectiveness of safety measures
undertaken.

(b) All Owners and occupants of any Unit, and all family members,
tenants, guests, and invitees of any Owner, acknowledge that the Released Parties do not
represent or warrant that any entiy gate, patrolling of the Property, neighborhood watch group or
volunteer safety patrol, or any safety system designated by or installed according to guidelines
established by Declarant may not be compromised or circumvented; nor that any entiy gate,
patrolling of the Property, neighborhood watch group or volunteer safety patrol, or any security
systems will prevent loss by burglary, theft, hold-up, or otherwise; nor that any entry gate.

10

Book: 6034 Page: 1913 Page 16 of 52


Page 17 of 52
17

patrolling of the Property, neighborhood watch group or volunteer safety patrol, or any security
systems will in all cases provide the detection or protection for which the system is designed or
intended.

(c) All Owners and occupants of any Unit, and all family members,
tenants, guests, and invitees of any Owner, acknowledge and understand that the Released
Parties are not insurers of safety within the Property. Each Owner acknowledges, understands
and shall be responsible for informing its tenants and all occupants of its Unit that the Released
Parties are not guarantors of security or safety and that each person using Property vyithin the
Project assumes all irsks of personal injury and loss or damage to property including Units and
the contents thereof, resulting from acts of third parties.

(d) All Owners and occupants of any Unit and all family members,
tenants, guests, and invitees of any Owner assume all risks for loss or damage to Persons, to
Units, and to the contents of Units and further acknowledge that the Released Parties have made
no representations or warranties, nor has any Owner, occupant, or any tenant, guest, or invitee of
any Owner relied upon any representations or warranties, expressed or implied, relative to any
entry gate, patrolling of the Property, neighborhood watch group or volunteer safety patrol, or
any security systems recommended or installed or any safety measures undertaken within the
Property.

Section 10.5 Provision of Services. The Association may provide services


and facilities for the members of the Association and their guests, lessees and invitees. The
Association shall be authorized to enter into contracts or other similar agreements with other
entities, including Declarant, to provide such services and facilities. The costs of services and
facilities provided by the Association may be funded by the Association as a Common Expense.
In addition, the Board shall be authorized to charge additional use and consumption fees for
services and facilities. The Board, without the consent of the Members of the Association, shall
be permitted to modify or cancel existing services or facilities provided, if any, or to provide
additional services and facilities. Nothing contained herein can be relied upon as a
representation as to what services and facilities, if any, will be provided by the Association. This
paragraph shall be specifically construed to allow the Association to enter into a contract for the
overall management of the Association with any individual or corporation.
Section 10.6 Change of Use of Common Elements. Upon (a) adoption of a
resolution by the Board stating that, in the Board's opinion, a service provided by the Association
pursuant to Section 10.5 or the then present use of a designated part of the Common Elements is
no longer in the best interest of the Owners or is no longer necessary or appropriate for the
purposes intended, and (b) the consent of Declarant during the Development Period, the Board
shall have the power and right to terminate such service or change the use of any Common
Elements (and, in connection therewith, construct, reconstruct, alter or change the buildings,
structures and improvements thereon in any manner deemed necessaiy by the Board to
accommodate the new use), provided that any such new use (i) shall be for the benefit of the

11

Book: 6034 Page: 1913 Page 17 of 52


Page 18 of 52

\i

Owners, and (ii) shall be consistent with any deed restrictions and zoning regulations restricting
or limiting the use of the Common Elements.

Section 10.7 View Impairment. Neither Declarant nor the Association


guarantees or represents that any view over and across any property, including any Unit, from
adjacent Units will be preserved without impairment. Neither Declarant nor the Association
shall have the obligation to prune or trim landscaping. Any express or implied easements for
view purposes or for the passage of light and air are hereby expressly disclaimed.

Section 10.8 Relationship with Tax-Exemnt Organizations. The Association


may create, enter into agreements or contracts with, grant exclusive and/or non-exclusive
easements over the Common Elements to, or transfer portions of the Common Elements to non
profit, tax-exempt organizations, including but not limited to organizations that provide facilities
or services designed to meet the physical or social needs of a particular group or class of persons,
for the benefit of the Property, the Association, its members and residents. The Association may
contribute money, real or personal property or services to any such entity. Any such contribution
shall be a Common Expense of the Association and included as a line item in the Association's
annual budget. For the purposes of this Section, a "tax-exempt organization" shall mean an
entity which is exempt from federal income taxes under the Internal Revenue Code ("Code"),
such as but not limited to entities which are exempt from federal income taxes under
Sections 501(c)(3) or 501(c)(4), as the Code may be amended from time to time.

ARTICLE 11.

Intentionallv Omitted

ARTICLE 12.

Intentionallv Omitted

ARTICLE 13.

RIGHT OF ENTRY IN EMERGENCIES

In case of any emergency originating in or threatening any Unit or the Common


Elements, regardless of whether the Owner or other Person in occupancy is present at the time of
such emergency, the Board of Directors, or any other Person authorized by it, or the managing
agent, shall have the right to enter such Unit, and such Common Elements for the purpose of
remedying or abating the cause of such emergency, and such right of entry shall be immediate.

12

Book: 6034 Page: 1913 Page 18 of 52


Page 19 of 52

ARTICLE 14.

RIGHT OF ENTRY FOR MAINTENANCE OF COMMON ELEMENTS


OR OTHER UNITS

Whenever it may be necessary to enter any Unit for the purpose of performing
any maintenance, alteration or repair to any portion of the Common Elements or adjacent Units,
the Owner of each Unit shall permit other Owners or their representatives, or the duly constituted
and authorized agent of the Association, to enter such Unit for such purpose, provided that the
entry shall be made only at reasonable times and with reasonable advance notice. The
Association, its agents, or contractors, may enter a Unit pursuant to this Section for the purpose
of (i) inspecting the Unit for vermin, insects, or other pests and for taking reasonable measures to
control or exterminate such pests and (ii) inspecting the fire alarms, sprinklers, and other fire
safety measures in the Unit.
ARTICLE 15.

LIMITATION UPON RIGHT OF OWNERS


TO ALTER AND MODIFY UNITS:
NO RIGHT TO ALTER COMMON ELEMENTS

Section 15.1 Alteration of Units. Subject to the provisions of N.C. Gen. Stat.
§ 47C-2-111, and to the limitations contained in Article 15 of this Declaration, Units may be
altered and Common Elements may be allocated as Limited Common Elements. Units may not
be subdivided, but boundaries between adjoining Units may be relocated subject to the
provisions of N.C. Gen. Stat. §47C-2-l 12.
Section 15,2 Common Elements Appurtenant to Units.

(a) The undivided interest in the Common Elements declared to be an


appurtenance to each Unit shall not be conveyed, devised, encumbered or otherwise dealt with
separately from said Unit, and the undivided interest in Common Elements appurtenant to each
Unit shall be deemed conveyed, devised, encumbered or otherwise included with the Unit even
though such undivided interest is not expressly mentioned or described in the instrument
conveying, devising, encumbering or otherwise dealing with such Unit. Any instrument
conveying, devising, encumbering or otherwise dealing with any Unit, which describes said Unit
by the number designation assigned thereto by the map recorded as aforesaid without limitation
or exception, shall be deemed and construed to affect the entire Unit and its appurtenant
undivided interest in the Common Elements. Subject to the Timesharing Prohibition included in
the Use Restrictions, nothing herein contained shall be construed as limiting or preventing
ownership of any Unit and its appurtenant undivided interest in the Common Elements by more
than one Person as tenants in common, joint tenants or as tenants by the entirety.

13

Book: 6034 Page: 1913 Page 19 of 52


Page 20 of 52

(b) Recognizing that the proper use of a Unit by an Owner or Owners is


dependent upon the use and enjoyment of the Common Elements in common with the Owners of
ail other Units, and that it is in the interest of all Owners that the ownership of the Common
Elements be retained in common by the Owners, it is hereby declared that the proportional
undivided interest in the Common Elements appurtenant to each Unit shall remain undivided and
no Owner shall bring or have any right to bring any action for partition or division of the
Common Elements.

Section 15.3 Consent to Modification of Units. Subiect to the Special


Declarant Rights reserved to Declarant in this Declaration, and the restriction in Section 5.2 of
this Declaration, no Owner of a Unit shall permit any modification or alteration to be made to a
Unit, or any alteration, betterment or improvement to the Limited Common Elements
appurtenant to a Unit, without first obtaining the written consent of the Association, which
consent may be withheld in the event that a majority of the Board of Directors of the Association
shall determine, in its sole discretion, that such modifications, alterations, betterments or
improvements would adversely affect or in any manner endanger the Condominium, in part or in
its entirety, or any other Unit. Subject to the Special Declarant Rights reserved to Declarant in
this Declaration, no Owner shall cause any improvements or changes to be made to any Unit or
building (other than interior painting or other interior decoration) including the installation of
electrical wiring, television or radio antennae or any other objects, machines or equipment which
may protrude through the walls or roof of any Unit or building, or in any manner alter the
appearance of the exterior portion of any building without the written consent of the Association
being first had and obtained. Such consent shall not be unreasonably withheld. Subject to the
Special Declarant Rights reserved to Declarant in this Declaration, no Owner shall cause any
object to be affixed to the Common Elements or in any manner change the appearance of the
Common Elements without the written consent of the Association being first obtained.

In the event the Association shall grant its consent for such improvements or
changes to be made, such improvements, including but not limited to all antennae and other
objects, machines or equipment which may protrude through the walls or roof shall become and
be deemed to be a part of the Unit to which they are affixed. As a condition to the granting of
written consent of the Association to an Owner for the installation of any improvements within
the Limited Common Elements assigned to such Owner's Unit, the obligation of Upkeep of such
Limited Common Elements, and any improvements and betterments installed therein, shall be
deemed to be the obligation of such Owner at the cost and expense of such Owner, and the
Association shall have no further obligation to provide such Upkeep or bear the cost thereof as
otherwise set forth in this Declaration.

Section 15.4 Floor Covering. Owners shall not change the floor covering in
any Unit if the installation will harm or in any way affect another Unit, the Common Elements,
or any structural portion of the condominium without the prior consent of the Board.
Notwithstanding this limitation. Owners may do any of the following without the need for prior
consent from the Board: (i) install area rugs on top of the existing floor covering originally

14

Book: 6034 Page: 1913 Page 20 of 52


Page 21 of 52
2^

installed by Declarant as part of the Unit, and (ii) repair or replace the said existing floor
covering with a materially identical material, subject to variations in color and style.
Section 15.5 Indemnification-Unit Modification. Subject to the Special
Declarant Rights reserved to Declarant in this Declaration, the Board of Directors of the
Association, in its sole discretion, may require an Owner desiring to add betterments or
improvements to his Unit or the Limited Common Elements appurtenant to his Unit to indemnify
the other Owners and the Association against any and all loss, cost and expense that may be
occasioned by the addition of such betterments or improvements and further may require such
Owner to obtain liability insurance naming the other Owners and the Association as additional
insureds in such amounts and upon such terms as the Board of Directors shall determine.
ARTICLE 16.

MAINTENANCE AND REPAIR BY OWNERS OF UNITS

Section 16.1 Owner Upkeep of Units. Every Owner shall perform promptly
all Upkeep within his Unit which, if omitted, would affect the Condominium, either in its
entirety or in a part belonging to other Owners, or adversely impair the ability to rent such
Owner's Unit or any other Unit, and every Owner shall be expressly responsible for the damages
and liability which his failure to do so may engender. The Owner of each Unit shall be liable
and responsible for the Upkeep of all air conditioning and heating equipment, fans or other
appliances or equipment, including any fixtures and/or their connections required to provide
water, light, power, telephone, sewage and sanitary service solely to his Unit. Such Owner
further shall be responsible and liable for the Upkeep of the surfaces of any and all walls,
ceilings and floors in the interior of his Unit including painting, decorating and furnishings, and
all other accessories in his Unit.

Section 16.2 Maintenance-Insurance Proceeds. Whenever the Upkeep of any


item for which the Owner of a Unit is obligated to perform at his own expense is occasioned by
any loss or damage which may be covered by any insurance maintained in force by the
Association, the proceeds of the insurance received by the Association shall be used for the
purpose of performing such Upkeep, except that the Owner of such Unit shall be, in said
instance, required to pay such portion of the costs of such Upkeep as shall, by reason of the
applicability of any deductibility provision of such insurance, exceed the amount of the insurance
proceeds applicable to such Upkeep.
Section 16.3 Limited Common Elements. Except as otherwise stated herein,
all betterments and improvements added to the Limited Common Elements by the Owners are a
part of the respective Units and shall be maintained by the respective Owners. The cost of
Upkeep of the Limited Common Elements shall be paid by the Owners to whom the exclusive
right to use the Limited Common Elements are allocated. Notwithstanding this Section, the
Board may, in its reasonable discretion, designate the cost of Upkeep of Limited Common
Elements as a Common Expense when said Upkeep is required pursuant to a common plan for
the overall Upkeep of the Common Elements.

15

Book; 6034 Page: 1913 Page 21 of 52


Page 22 of 52

ARTICLE 17.

MAINTENANCE AND REPAIR OF COMMON ELEMENTS


BY THE ASSOCIATION

Section 17.1 Association Upkeep of Common Elements. Subject to


Declarant's Special Declarant Rights, and other than the Upkeep of Limited Common Elements
required by the Owner, the Association shall be responsible for the Upkeep of the Common
Elements, and all conduits, ducts, plumbing, wiring and other facilities located in the Common
Elements or in a Unit for the furnishing of utility and/or other services to the Common Elements
or other Units.

Section 17.2 Maintenance Standard. If Declarant has provided to the


Association a maintenance manual prepared by the general contractor with which Declarant
contracted for the construction of the buildings and improvements in the Condominium which
outlines the basic building and systems inspection and maintenance requirements ("Maintenance
Manual"), the minimum standard for Upkeep of the Common Elements to be performed by the
Association shall be as set forth in the Maintenance Manual as to those portions of the Common
Elements identified in the Maintenance Manual. If any incidental damage is caused to any Unit
by virtue of any work which may be done or caused to be done by the Association in the Upkeep
of any Common Elements, the Association shall, at its expense, repair such incidental damage.
Section 17.3 Damage Caused bv Owner.

(a) Whenever the Upkeep of any item for which the Association is
obligated to perform at its expense is occasioned by any act of an Owner, his tenants, guests or
invitees, and such loss or damage may be covered by any insurance maintained in force by the
Association, the proceeds of the insurance received by the Association shall be used for the
purpose of such Upkeep, except that the Owner who is responsible for the act causing the
damage (whether done by himself or his tenants, guests or invitees) shall be required to pay such
portion of the cost of such Upkeep as shall, by reason of the applicability of any deductibility
provision of such insurance, exceed the amount of the insurance proceeds applicable to such
Upkeep.

(b) Whenever the Upkeep of any item for which the Association is
obligated to maintain, replace or repair at its expense is occasioned by an act of an Owner, his
tenants, guests or invitees, and such loss or damage is not covered by any insurance maintained
in force by the Association, the Owner who is responsible for the act causing the damage
(whether done by himself or his tenants, guests or invitees) shall be required to pay the cost of
such Upkeep.

Section 17.4 Liabilitv for Damage. Establishment of liability for damage


caused by the Owner of a Unit or the Association is subject to the provisions of N.C. Gen. Stat.
§ 47C-3-l07(d).

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Book: 6034 Page: 1913 Page 22 of 52


Page 23 of 52

ARTICLE 18.

AUTHORITY TO PURCHASE INSURANCE

All required or permitted insurance policies (other than title insurance and
insurance on betterments and improvements to the Units and Limited Common Elements, if any)
upon the Property (other than the personal property of the Owners) shall be purchased by the
Association in the name of the Association, as Trustees for the Owners and their respective
Mortgagees as their interests may appear, and shall provide for the issuance of certificates or
memoranda of insurance to the Association and to any Owner, Mortgagee, or beneficiaiy of a
deed of trust

ARTICLE 19.

INSURANCE COVERAGE TO BE MAINTAINED:


USE AND DISTRIBUTION OF INSURANCE PROCEEDS

Section 19.1 Insurance Coverages. The following insurance coverage shall be


maintained in full force and effect by the Association: ^
(a) Casualty insurance covering the Common Elements, and to the
extent reasonably available, the Units, including all buildings and all improvements upon the
land and all personal property included within the Condominium, except such personal property
as may be owned by the Owners, shall be procured in an amount equal to one hundred percent
(100%) of the maximum insurable replacement value thereof (exclusive of land, excavation and
foundations) as determined annually by the insurance company affording such coverage. Such
coverage shall afford protection against: (a) loss or damage by fire and other hazards covered by
the standard extended coverage endorsement; and (b) such other risks as from time to time
customarily shall be covered with respect to buildings similar in construction, location and use,
including, but not limited to, flood, vandalism and malicious mischief. Casualty insurance
obtained for the buildings and improvements shall provide such coverage commonly known as
"all inclusive building" coverage and/or "completed Unit" coverage as such terms are used in the
insurance industry, and shall include, but not be limited to, all components of the Units together
with fixtures, cabinets, built in appliances and all other such improvements which were part of
the original completed Units, except for betterments and improvements installed by the Owner.
(b) Public liability and property damage insurance covering ail
occurrences commonly insured against including, death, bodily injury, and property damage
arising out of or in connection with the use, ownership, or maintenance of the Common
Elements, and in such forms as shall be required by the Association, including, but not limited to,
legal liability, hired automobiles, non-owned automobile and off-premises employee coverage.
All liability insurance shall contain cross-liability endorsements to cover liabilities of the Owners
as a group to an Owner. The limits of such policy or policies shall be in an amount of not less
than One Million Dollars ($1,000,000.00) with respect to injuries to or death of any one (1)

17

Book: 6034 Page: 1913 Page 23 of 52


Page 24 of 52
v\

person, in an amount of not less than One Million Dollars ($1,000,000.00) with respect to any
one (1) accident or disaster, and in an amount not less than One Million Dollars ($1,000,000.00)
with respect to property damaged or destroyed.

Section 19.2 Premiums - Common Expenses. Premiums upon insurance


policies purchased by the Association shall be paid by the Association as Common Expenses to
be assessed and collected from all of the Owners of Units.

Section 19.3 Deductibles. The deductible, if any, on any insurance policies


maintained by the Association shall be paid by the Association as a Common Expense and shall
be in an amount no greater than five percent (5%) of the face value of the insurance policy. In
the event that the cause of any damage or destruction of any portion of the Condominium
originated in or through the Common Elements or an apparatus located within the Common
Elements, the Association may assess (i) any deductible amount necessitated by either the
intentional act or omission, negligence, abuse, misuse or neglect of an Owner, or his or her
family, guest, tenant, or the family or guest of said tenant, against such Owner; and (ii) a
proportionate share of the deductible amount to any Owner whose Unit is repaired (or which
Owner is compensated) by funds from the insurance policies maintained by the Association,
based on the proportionate amount of insured loss incurred to the Unit relative to the total
insured loss to the Common Elements and other Units. In the event that the cause of any damage
or destruction to any portion of the Condominium originated in or through a Unit or any
component thereof, then the Owner of said Unit shall pay the deductible under the Association's
master casualty policy without regard to whether the Owner was negligent. If an Owner fails to
pay the deductible assessed against his or her Unit and the Association pays the deductible cost
owed by the Owner, then the deductible cost paid by the Association shall be charged to the Unit
as an assessment for which the Association shall have a lien.

Section 19.4 Insurance Claim Adjustment. Any loss covered by the property
insurance maintained by the Association shall be adjusted with the Association; provided,
however, all insurance policies purchased by the Association shall be for the benefit of the
Association and the Owners and their Mortgagees, as their respective interests may appear, and
shall provide that all proceeds payable as a result of casualty losses shall be paid to the
Association as Trustee. The Trustee shall hold such proceeds in trust for the benefit of the
Owners and their respective Mortgagees as their interests may appear.

Section 19.5 Mortgagee-Insurance Proceeds. In the event a mortgage


endorsement has been issued for a Unit, the share of any insurance proceeds of the Owner shall
be held for the Mortgagee and the Owner as their interests may appear, but nothing herein
contained shall be construed so as to give any Mortgagee the right to determine or participate in
the determination of reconstruction or repair.

Section 19.6 Use of Insurance Proceeds. Proceeds of insurance policies


received by the Association shall be disbursed first for the repair, reconstruction, or restoration of
the damaged property, and Owners and lienholders are not entitled to receive payment of any
portion of the proceeds unless there is a surplus of proceeds after the Property has been

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Book: 6034 Page: 1913 Page 24 of 52


Page 25 of 52

completely repaired or restored, or the Condominium is terminated except as specified in


Article 20.

Section 19.7 Reimbursement of Initial Insurance Premiums. Declarant shall


pay the premium(s) of the initial insurance policies required by this Article 19 and shall be
reimbursed for the pro rata portion of the cost thereof by each Owner at the time each Unit is
conveyed to a Person other than Declarant, or reimbursed by the Association.

Section 19.8 Insurance Policy Requirements. Insurance policies carried


pursuant to this Article 19 shall provide that:

(a) Each Owner is an insured person under the policy with respect to
liability arising out of his interest in the Common Elements or membership in the Association;

(b) The insurer waives its right to subrogation under the policy against
any Owner or members of his household, if applicable;

(c) No act or omission by any Owner, unless acting within the scope of
his authority on behalf of the Association, will preclude recovery under the policy;

(d) If, at the time of any loss under the policy, there is other insurance in
the name of an Owner covering the same risk covered by the policy, the Association's policy
provides primary insurance; and

(e) The insurer issuing the policy may not cancel or refuse to renew it
until thirty (30) days after notice of the proposed cancellation or nonrenewal has been mailed to
the Association, each Owner and each Mortgagee or beneficiary under a deed of trust to whom
certificates or endorsements have been issued at their respective last known addresses.

(f) United Bank, a Virginia banking corporation, successor by merger to


CresCom Bank, its successors and/or assigns ("Lienholder"), shall be named as an additional
insured on all insurance policies as long as the Deed of Trust recorded in Book 5644, at
Page 1396 in the office of the Register of Deeds of Buncombe County ("Lien") remains a lien on
any portion of the Condominium.
Section 19.9 Owner's Insurance Coverage . The Association shall not be
required to maintain insurance coverage for any betterments or improvements to the Units and/or
Limited Common Elements added by any Owner. Each Owner shall obtain additional insurance
on their Unit, its contents, loss of use and other such coverage (HO-6 or equivalent form) at their
own expense, provided, however, that such Owner's insurance shall not decrease the amount that
the Association, or any trustee for the Association on behalf of all of the Owners, will realize
under any insurance policy that the Association may have in force on the Property. Coverage
amounts, terms and conditions are at the Owner's discretion but should, at a minimum, be
enough to cover (i) the cost of repairing betterments and improvements to the Units and any
other portions of the Unit not covered by the Association's insurance policy and (ii) any

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Book: 6034 Page: 1913 Page 25 of 52


Page 26 of 52

ZXo

obligation to reimburse the Association for the amount of the Association's property deductible,
the terms of which are outlined in Section 19.3. Such insurance shall, if available, contain a
waiver of subrogation as to any claims against Owners, the Association and their respective
servants, agents and guests. The Association, may, but shall not be required to, ask Owners to
provide proof of the insurance coverage required by this section.

Section 19.10 Insurance Availability Notification. If the insurance described in


this Article is not reasonably available, the Association promptly shall cause notice of that fact to
be hand delivered or sent prepaid by United States mail to all Owners.

Section 19.11 Fidelity Insurance. If desired, the Association may maintain


fidelity insurance.

ARTICLE 20.

RECONSTRUCTION OR REPAIR OF CASUALTY DAMAGE

Section 20.1 Reconstruction-Costs. Any portion of the Condominium for


which insurance is required pursuant to Article 19 which is damaged or destroyed shall be
repaired or replaced promptly by the Association unless (1) the Condominium is terminated,
(2) repair or replacement would be illegal under any State or local health or safety statute or
ordinance, or (3) the Owners decide not to rebuild by an eighty percent (80%) vote, including
one hundred percent (100%) approval of all Owners of Units not to be rebuilt or Owners of Units
assigned to Limited Common Elements not to be rebuilt and approval of Mortgagees that
represent at least fifty-one percent (51%) of the votes allocated to Units subject to Mortgages.
The cost of repair or replacement in excess of insurance proceeds and reserves shall be a
Common Expense. If the entire Condominium is not repaired or replaced, (1) the insurance
proceeds attributable to the damaged Common Elements shall be used to restore the damaged
area to a condition compatible with the remainder of the Condominium, (2) the insurance
proceeds attributable to Units and Limited Common Elements which are not rebuilt shall be
distributed to the Owners of those Units and the Owners of the Units to which those Limited
Common Elements were allocated or to lienholders, as their interests may appear, and (3) the
remainder of the proceeds shall be distributed to all of the Owners or lienholders, as their
interests may appear, in proportion to their Common Element interest. If Owners vote not to
rebuild any Unit, that Unit's allocated interests automatically shall be reallocated upon the vote
as if the Unit had been condemned pursuant to N.C. Gen. Stat. § 47C-l-107(a), and the
Association promptly shall prepare, execute and record an amendment to this Declaration
reflecting the real locations. Unless otherwise prohibited, any such reconstruction or repair shall
be substantially in accordance with the plans and specifications contained herein.

Section 20.2 Estimates of Replacement Costs. Immediately after the casualty


causing damage to property for which the Association has the responsibility for maintenance and
repair, the Association shall obtain reliable and detailed estimates of the cost to place the
damaged property in a condition as good as that before the casualty. Such costs may include

20

Book: 6034 Page: 1913 Page 26 of 52


Page 27 of 52

professional fees and premiums for such bonds as the Board of Directors deems necessary or
appropriate.
Section 20.3 Priority of Repair. When the damage is to Common Elements,
Limited Common Elements and Units, the insurance proceeds will be applied first to the costs of
repairing the Common Elements, secondly to the cost of repairing the Units, and thirdly to the
cost of repairing the Limited Common Elements.
Section 20.4 Association Right to Insurance Adjustments. Each Owner shall
be deemed to have delegated to the Association his right to adjust with insurance companies all
losses under policies purchased by the Association.

ARTICLE 21.

ASSOCIATION TO MAINTAIN REGISTER


OF OWNERS AND MORTGAGEES

Section 21.1 Register of Owners and Mortgagees. The Association shall at all
times maintain a register setting forth the names of the Owners of all of the Units. In the event
of the sale or transfer of any Unit to a third party, the purchaser or transferee shall notify the
Association in writing of his interest in such Unit, together with such recording information as
shall be pertinent to identify the instrument by which such purchaser or transferee has acquired
his interest in any Unit, Further, the Owner of each Unit must notify the Association of the
names of the parties holding, insuring, or guaranteeing any Mortgage or Mortgages on any Unit
(for purposes of this section, "Mortgagee"), the amount of such Mortgage or Mortgages, the
recording information which shall be pertinent to identify the Mortgage or Mortgages, the name
and address of the Mortgagee, and the street address of the Unit to which its Mortgage relates.
The holder, insurer, or guarantor of any Mortgage or Mortgages upon any Unit may, if it so
desires, also notify the Association of the existence of any Mortgage or Mortgages held by such
party on any Unit and the name and address of the Mortgagee. Upon receipt of such notice from
the Owner or Mortgagee, the Association shall register in its records all pertinent information
relating thereto.

Section 21.2 Mortgage Provisions. The following provisions are for the
benefit of holders, insurers and guarantors of Mortgages on Units in the Property. The
provisions of this Article apply to both this Declaration and to the Bylaws, notwithstanding any
other provisions contained therein.

(a) Notices of Action. A Mortgagee will be entitled to timely written


notice of:

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Page 28 of 52

zi

(i) Any condemnation loss or any casualty loss which affects a


material portion of the Property or which affects any Unit on which there is a Mortgage held,
insured, or guaranteed by such Mortgagee;

(ii) Any delinquency in the payment of assessments or charges


owed by a Unit subject to the Mortgage of such Mortgagee, where such delinquency has
continued for a period of sixty (60) days, or any other violation of the Declaration or Bylaws
relating to such Unit or the Owner or occupant which is not cured within sixty (60) days;

(iii) Any lapse, cancellation, or material modification of any


insurance policy maintained by the Association; or

(iv) Any proposed action that requires the consent of a specified


percentage of Mortgagees.

(b) No Prioritv. No provision of this Declaration or the Bylaws gives or


shall be construed as giving any Owner or other party priority over any rights of the Mortgagee
of any Unit in the case of distribution to such Owner of insurance proceeds or condemnation
awards for losses to or a taking of the Common Elements.

(c) Notice to Association. Upon request, each Owner shall be obligated


to furnish to the Association the name and address of the holder of any Mortgage encumbering
such Owner's Unit.

ARTICLE 22.

ASSESSMENTS: LIABILITY. LIEN AND ENFORCEMENT

To properly administer the operation and management of the Condominium, the


Association will incur for the mutual benefit of all of the Owners of Units, costs and expenses
which are part of the Common Expenses. To provide for the payment of the Common Expenses,
the Association has heretofore been granted the right to make, levy and collect assessments
against the Owners and their Units. In furtherance of this grant of authority to the Association to
make, levy and collect assessments to pay the Common Expenses of the Condominium, the
provisions of this Article shall be operative and binding upon the Owners of all Units.

Section 22.1 Lew of Assessments. Except as specifically otherwise provided


for in this Article or elsewhere in this Declaration, all assessments levied by the Association shall
be levied pursuant to the allocation of Common Expenses set forth in Exhibit C. as same may be
amended from time to time. Should the Association be the Owner of a Unit or Units, the
assessment which would otherwise be due and payable to the Association by the Owner of such
Unit or Units, reduced by the amount of income which may be derived from the leasing of such
Unit or Units by the Association, shall be apportioned and assessment therefor levied ratably
among the Owners of all Units which are not owned by the Association, based upon their

22

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Page 29 of 52
2^1

proportionate interests of the Common Expenses exclusive of the interests therein appurtenant to
any Unit or Units owned by the Association.

Section 22.2 Assessments - Limited Common Elements. Any Common


Expense associated with the maintenance, repair or the replacement of a Limited Common
Element shall be assessed equally against the Units to which that Limited Common Element is
assigned. Any Common Expense or portion thereof benefiting fewer than all of the Units must
be assessed exclusively against the Units benefited in such proportions as determined by the
Board.

Section 22.3 Pavment of Assessments. Assessments provided for herein may


be payable in installments as directed by the Board of Directors of the Association. Such
assessments shall commence upon closing of the sale of the first Unit.

Section 22.4 Association Budget. The Board ofDirectors of the Association


shall establish an Annual Budget in advance for each fiscal year (which shall correspond to the
fiscal year set forth in the Bylaws). jSuch Budget shall project all expenses for the forthcoming
fiscal year which may be required for die proper operation, management and maintenance of the
Condominium, including a reasonable allowance for contingencies and reserves (as set forth in
Section 22.5), such budget to take into account projected anticipated income which is to be
applied in reduction of the amounts required to be collected as an assessment each year. The
Board ofDirectors shall keep separate, in accordance with Section 22.5 hereof, items relating to
operation and maintenance from items relating to capital improvements. Within thirty (30) days
after adoption of such Annual Budget by the Board ofDirectors of the Association, copies of
said Annual Budget or summaries thereof shall be delivered to each Owner of a Unit. Within
thirty (30) days after adoption of any proposed Budget, the Board ofDirectors shall set a date for
a meeting^of the Owners to consider ratification of the Annual Budget which date shall be not
less than fourteen (14) nor more than thirty (30) days after the mailing of copies of such Annual
Budget or summary thereof to the Owners. There shall be no requirement that a quorum be
present at the meeting. The Annual Budget is ratified unless at that meeting a majority of all the
Owners reject the Annual Budget. In the event the proposed Annual Budget is rejected, the
periodic budget last ratified shall be continued until such time as the Owners ratify (i.e. fail to
reject by a majority of all Owners) a subsequent budget proposed by the Board of Directors.
Should the Board ofDirectors at any time determine, in its sole discretion, that the assessments
levied are, or may prove to be, insufficient to pay the costs of operation and management of the
Condominium, or in the event of emergencies, the Board ofDirectors shall have the authority to
levy such additional assessment or assessments it may deem to be necessary.

Section 22.5 Capital Improvement Fund. The Board of Directors of the


Association, in establishing the Annual Budget for operation, management and maintenance of
the Condominium, may designate therein a sum to be collected and maintained as a reserve fund
for replacement of and capital improvements to the Common Elements, which capital
improvement and replacement fund (Capital Improvement Fund) shall be for the purpose of
enabling the Association to replace structural elements and mechanical equipment constituting a

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Book: 6034 Page: 1913 Page 29 of 52


Page 30 of 52

50

part of the Common Elements, as well as the replacement of personal property which may
constitute a portion of the Common Elements held for the joint use and benefit of the Owners of
Units. The amount to be allocated to the Capital Improvement Fund may be established by said
Board of Directors so as to collect and maintain a sum reasonably necessary to anticipate the
need for replacement of Common Elements; provided that at least ten percent (10%) of the
annual budget must be allocated to the Capital Improvement Fund. The amount collected for the
Capital Improvement Fund shall be maintained in a separate account by the Association and such
monies shall be used only to make capital improvements to Common Elements. Any interest
earned on monies in the Capital Improvement Fund may, in the discretion of the Board of
Directors of the Association, be expended for current operation and maintenance.

Section 22.6 Assessments-Association Propertv. All monies collected by the


Association shall be treated as the separate property of the Association, and such monies may be
applied by the Association to the payment of any expense of operating and managing the
Condominium, or to the proper undertaking of all acts and duties imposed upon it by virtue of
this Declaration, and the Bylaws of the Association. As monies for any assessment are paid into
the Association by any Owner of a Unit, the same may be commingled with monies paid to the
Association by other Owners of Units. Although all funds and Common Surplus, including other
assets of the Association, and any increments thereto or profits derived therefrom or from the
leasing or use of Common Elements, shall be held for the benefit of the members of the
Association, no member of the Association shall have the right to assign, hypothecate, pledge or
in any manner transfer his membership interest therein, except as an appurtenance to his Unit.
When the Owner of a Unit shall cease to be a member of the Association by reason of his
divestment of ownership of such Unit, by whatever means, the Association shall not be required
to account to such Owner for any share of the funds or assets of the Association, or which may
have been paid to the Association by such Owner, as all monies which any Owner has paid to the
Association shall be and constitute an asset of the Association which may be used in the
operation and management of the Condominium.

Section 22.7 Delinquent Assessments. The payment of any assessment or


installment thereof shall be in default if such assessment or installment is not paid to the
Association within thirty (30) days of the due date for such payment. When in default, the
delinquent assessment or delinquent installment thereof due to the Association shall bear interest
at the rate of ten percent (10%) per annum or the maximum rate permitted by law, whichever is
less, until such delinquent assessment or installment thereof, and all interest due thereon, has
been paid in full to the Association. All monies owing to the Association shall be due and
payable at the office of the Association. In any case where an assessment is payable in
installments, upon a default by an Owner in the timely payment of any such installment, the
maturity of the remaining total of the unpaid installments of such assessment may be accelerated,
at the option of the Board, and the entire outstanding balance of the Assessment, including such
delinquent installment, may be declared due and payable in full immediately by written notice to
such effect upon the defaulting Owner.

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Page 31 of 52

Section 22.8 Liability for Assessments. The Owner or Owners of each Unit
shall be personally liable, jointly and severally, to the Association for the payment of all
assessments, regular or special, which may be levied by the Association against such Unit while
such party or parties are Owner or Owners of a Unit. In the event that any Owner or Owners are
in default in payment of any assessment or installment thereof owed to the Association, such
Owner or Owners personally shall be liable, jointly and severally, for interest on such delinquent
assessment or installment thereof as above provided, and for all costs of collecting such
assessment or installment thereof and interest thereon, including a reasonable attorneys' fee,
whether suit be brought or not.

No Owner of a Unit may exempt himself from liability for any assessment levied
against him or his Unit by waiver of the use of enjoyment of any of the Common Elements, or by
abandonment of the Unit or in any other way.

Section 22.9 Lien for Assessments. Recognizing that proper operation and
management of the Condominium requires the continuing payment of costs and expenses
therefor, and that such proper operation and maintenance results in benefit to all of the Owners
of Units, and that the payment of such Common Expenses represented by the assessments levied
and collected by the Association is necessary in order to preserve and protect the investment of
each Owner, the Association is hereby granted the right to place a lien upon each Unit, and any
Limited Common Elements assigned to such Unit, and its appurtenant undivided interest in the
Common Elements for nonpayment of any assessment levied against a Unit remaining unpaid for
thirty (30) days or longer, which lien also shall secure interest, if any, which may be due on the
amount of any delinquent assessments owing to the Association, and which lien also shall secure
all costs and expenses, including reasonable attorneys' fees, which may be incurred by the
Association in enforcing the lien provided for herein. Subject to N.C, Gen. Stat. § 47C-3-116, as
amended, the lien granted to the Association may be foreclosed in the same manner as real estate
Mortgages and deeds of trust may be foreclosed under power of sale in the State of North
Carolina. The Association shall be entitled to bid at any foreclosure sale and may apply as cash
credit against its bid all sums due as provided herein. The lien granted to the Association shall
further secure such advances for taxes, and payments on account of superior Mortgages, liens or
encumbrances which may be required to be advanced by the Association in order to preserve and
protect its lien, and the Association shall further be entitled to interest at the rate of eighteen
percent (18%) per annum or the maximum rate permitted by law, whichever is less, on any such
advances made for such purpose. All persons, firms or corporations who shall acquire, by
whatever means, any interest in the ownership of any Unit, or who may be given or may acquire
a Mortgage, lien or other encumbrance thereon, are hereby placed on notice of the lien rights
granted to the Association, and shall acquire such interest in any Unit expressly subject to such
lien rights.

The lien herein granted unto the Association shall be enforceable from and after
the time of recording a claim of lien in the office of the Clerk of Superior Court of Buncombe
County, North Carolina, which claim shall state the description of the Unit encumbered thereby,
the name of the record owner, the amount due, the date when due and shall comply with any

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Page 32 of 52

other requirements under N.C. Gen. Stat. § 47C-3-116, as amended. The claim of lien shall be
recordable at any time after default and the lien shall continue in effect until all sums secured by
said lien as herein provided shall have been fully paid, but shall be extinguished unless a
proceeding to enforce the lien is instituted within three (3) years after the docketing thereof.
Such claims of lien shall include only assessments which are due and payable when the claim of
lien is recorded, plus interest, costs, attorneys' fees, advances to pay taxes and prior
encumbrances and interest thereon, all as above provided and all fees, charges, late charges, fines
and interest as set forth in N.C. Gen. Stat. § 47C-3-116, as amended. Such claims of lien shall be
signed and verified by an officer or agent of the Association. Upon full payment of all sums
secured by such claim of lien, the same shall be satisfied of record.

The lien provided for herein shall be prior to all liens and encumbrances on a
Unit except (1) liens and encumbrances (specifically including, but not limited to, a Mortgage or
deed of trust on the Unit) recorded before the docketing of the lien in the office of the clerk of
superior court, and (2) liens for real estate taxes and other governmental assessments or charges
against the Unit. This subsection does not affect the priority of mechanics' or materialmen's
liens.

If the holder of a first Mortgage or first deed of trust of record, or other purchaser
of the Unit, obtains title to the Unit as a result of foreclosure of a first Mortgage or first deed of
trust, such purchaser, and its heirs, successors and assigns, shall not be liable for the assessments
against such Unit which became due prior to acquisition of title to such Unit by such purchaser.
Such unpaid assessments shall be deemed to be Common Expenses collectible from all of the
Owners including such purchaser, and its heirs, successors and assigns although nothing herein
contained shall be construed as releasing the party liable for such delinquent assessment from the
payment thereof or the enforcement of collection of such payment by means other than
foreclosure.

Section 22.10 Statement of Assessment Status. Whenever any Unit may be


leased, sold or mortgaged by the Owner thereof, the Association, upon written request of the
Owner, shall furnish to the proposed lessee, purchaser or Mortgagee, a statement verifying the
status of payment of any assessment which shall be due and payable to the Association for such
Unit. Such statement shall be executed by any officer of the Association, and any lessee,
purchaser or Mortgagee may rely upon such statement in concluding the proposed lease,
purchase or mortgage transaction, and the Association shall be bound by such statement.
Section 22.11 Election of Collection Remedies. Institution of a suit at law to
attempt to effect collection of the payment of any delinquent assessment shall not be deemed to
be an election by the Association which shall prevent it from thereafter seeking, by foreclosure
action, enforcement of the collection of any sums remaining owing to it, nor shall proceeding by
foreclosure to attempt such collection be deemed to be an election precluding the institution of a
suit at law to collect any sum then remaining owing to the Association.

Section 22.12 Initial Contribution to Working Capital Fund. Upon the sale and
closing of the purchase of each Unit by the Declarant to a Person other than Declarant, the

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Page 33 of 52

Oy

purchaser of each Unit shall pay a non-refundable contribution to the working capital of the
Association in an amount equal to one fourth (1/4) of the annual Common Expense liability to be
assessed against such Unit for the first year of operation of the Condominium. The contribution
to working capital may be utilized to reimburse the Declarant the costs of premiums for
insurance purchased by the Declarant for the benefit of the Condominium and the Association.
ARTICLE 23.

COMPLIANCE AND ENFORCEMENT

Section 23.1 General Remedies. Every Owner and any occupant of any Unit
shall comply with the Association Documents and the Act. Failure to comply shall be grounds
for an action by the Association to recover sums due, for damages, injunctive relief or any other
remedy available at law and equity or under the Act.
Section 23.2 Enforcement/Sanctions. The Board or such other Association
agent with the Board's approval, may impose sanctions for violations of Association Documents
after notice and a hearing in accordance with the procedures set forth in the Act and Section 23.3
of this Declaration. Such sanctions may include, without limitation;

(a) Imposing reasonable monetaiy fines which shall constitute a lien


upon the Unit of the violator;

(b) Suspending an Owner's right to vote;

(c) Suspending any Person's right to use any facilities within the
Common Elements; provided, however, nothing herein shall authorize the Board to limit ingress
or egress to or from the Unit; and

(d) Suspending any services provided by the Association to an Owner or


the Owner's Unit if the Owner is more than thirty (30) days delinquent in paying any assessment
or other charge owed to the Association.

Section 23.3 Hearing Procedures. Except as may be otherwise specifically


authorized by the Association Documents, and permitted by the Association Documents, the
Board shall not (i) impose a fine or penalty, (ii) undertake permitted remedial action, or
(iii) suspend voting or infringe upon other rights of a Member or other occupant of a Lot or Unit
for violations of the Association Documents, or for assessments or other amounts due and owing
to the Association remaining unpaid for a period of thirty (30) days, or longer, unless and until
the following procedure is completed:

(a) Notice. The Board, or an adjudicatory panel appointed by the Board,


shall serve the Owner or occupant of a Unit alleged to have violated the Association Documents
or the Act (the "Responsible Person") with a written notice of a hearing to be held by the Board
of the Association in executive session, or before an adjudicatory panel appointed by the Board;

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provided, however, that any adjudicatory panel appointed by the Board shall be composed of
members of the Association who are not officers of the Association or members of the Board.
The notice shall contain: (i) the nature of the alleged violation; (ii) the time and place of the
hearing, which shall not be less than ten (10) days from the giving of the notice; (iii) an
invitation to attend the meeting and produce any statement, evidence and witness on behalf of the
Responsible Person; and (iv) the proposed sanction to be imposed. The notice prescribed herein
may be served by mailing a copy of said notice to the Responsible Person by placing said notice
in the United States mail, postage prepaid, by any method as permitted for the service of
summons as set forth in Rule 4 of the North Carolina Rules of Civil Procedure or by the delivery
of said notice by an officer, director or agent of the Association to the Responsible Person or to
any person who may be served on the Responsible Person's behalf as provided in said Rule 4.

(b) Hearing. The hearing shall be held in executive session of the Board
or an adjudicatory panel appointed by the Board pursuant to the notice affording the member a
reasonable opportunity to be heard. Any adjudicatory panel appointed by the Board shall be
composed of Members who are not officers of the Association or members of the Board. Prior to
the effectiveness of any sanction hereunder, proof of notice and the invitation to be heard shall
be placed in the minutes of the meeting. Such proof shall be deemed adequate if a copy of the
notice, together with a statement of the date and manner of deliver, is entered by the o^cer,
director, or agent who delivered such notice. The notice requirement shall be deemed satisfied if
the Responsible Person appears at the meeting. The minutes of the meeting shall contain a
written statement of the results of the hearing and the sanction, if any, imposed. In addition, a
written statement of the results of the hearing and the sanction, if any, imposed shall be mailed
by the United States mail, postage prepaid, by the Association to the violator.

(c) Appeal. If the hearing is held before an adjudicatory panel,


following such hearing and notice of a decision adverse to the violator, the Responsible Person
shall have the right to appeal the decision to the Board. To perfect this right, a written notice of
appeal must be received by the managing agent of the Association, President or Secretary of the
Association within fifteen (15) days after the date of the decision, said written notice to contain
information by which the Board may notify the Responsible Person of the date of the appeal
hearing. If no adjudicatory panel is appointed by the Board, no right of appeal shall exist.

(d) Sanction as Assessment. Pursuant to the provisions of this Section, a


fine may be imposed by the Association is an amount not exceeding One Hundred and No/100
Dollars ($100.00) (or any greater amount as may be provided otherwise by law or the Act) per
violation of the Association Documents and without further hearing, for each day more than
five (5) days after the decision to impose such fine that the violation occurs. Any such fine shall
be an assessment as set forth in this Declaration and the Act. If it is decided pursuant to the
provisions of this Section that a suspension of privileges or services should be imposed, the
suspension may be continued without further hearing until the violation or delinquency is cured.

Section 23.4 Self Help Remedies. In addition to other rights set forth in the
Association Documents and the Act, upon violation or breach of any provision of the

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Page 35 of 52
35^

Association Documents, the Board shall have the right: (i) to enter a Unit or Limited Common
Element appurtenant thereto, on which or as to which such violation or breach exists and
summarily to abate and remove, at the expense of the defaulting Owner, any structure, thing or
condition that may exist therein contrary to the intent and meaning of the provisions of the
Association Documents, and the Board shall not thereby be deemed guilty in any manner of
trespassed, (ii) to use self-help to remove or cure any violation of the Association Documents
(including, without limitation, the towing of vehicles); or (iii) to enjoin, abate or remedy by
appropriate legal proceedings, either at law or in equity, the continuance of any such breach;
provided, however, that before any construction or improvements may be altered or demolished,
except in emergencies. Judicial proceedings shall be instituted by the Association against such
defaulting Owner or its tenant.
Section 23.5 Cumulative Remedies/Attomevs* Fees. The Association shall
have all powers and remedies under the Act and the Association Documents which shall be
cumulative of any remedies available at law or in equity. In any action to enforce the provisions
of the Association Documents, if the Association prevails, it shall be entitled to recover all costs,
including, without limitation, attorneys; fees and court costs, reasonably incurred in such action.
Section 23.6 Association's Right Not to Take Action. The Association shall
not be obligated to pursue enforcement action in any particular case, such decisions to be within
the discretion of the Board, except that the Board shall not be arbitrary or capricious in taking
enforcement action. Without limiting the generality of the foregoing, the Board may determine
that, under the circumstances of a particular case: (a) the Association's position is not strong
enough to justify taking any or further action; or (b) the covenant, restriction or rule being
enforced is, or is likely to be construed as, inconsistent with applicable law; or (c) although a
technical violation may exist or may have occurred, it is not of such a material nature as to be
objectionable to a reasonable person or justify expending Association funds; or, (d) it is not in
the best interest of the Association, based upon hardship, expense or other reasonable criteria, to
pursue enforcement action.
Such a decision shall not be construed a waiver of the right of the Association to
enforce such covenant, restriction, rule or provision at a later time under other circumstances or
preclude the Association from enforcing any other covenant, restriction, rule or provision, nor
shall it preclude any Owner from taking action at law or in equity to enforce the Association
Documents.

Section 23.7 Enforcement bv Owner. Nothing set forth in this Article 23 shall
prevent any aggrieved Owner from instituting any available remedy in law or in equity for a
violation of the Association Documents.

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Page 36 of 52

3^

ARTICLE 24.

COMMON SURPLUS

"Common Surplus," meaning all funds and other assets of the Association
remaining after the payment of or the provision for Common Expenses, including reserves, shall
be owned by the Owners of all Units in the same proportion as their Common Expense liabilities.
Except for distribution of any insurance indemnity herein provided, or upon termination of the
Condominium, any attribution or distribution of Common Surplus which may be made from time
to time shall be made to the then Owners of Units in accordance with their percentage interest in
Common Surplus as declared herein. All Common Surplus remaining after payment of or
provision for Common Expenses, including prepayment of reserves, must be paid to the Owners
in proportion to their Common Expense liabilities or credited to them to reduce their future
Common Expense liabilities.

ARTICLE 25.

TERMINATION

The Condominium may be terminated only by the agreement of Owners of Units


to which at least eighty percent (80%) of the votes in the Association are allocated (as set forth in
N.C. Gen. Stat. § 47C-2-118) and the approval of Mortgagees that represent at least fiffy-one
percent (51%) of the votes allocated to Units subject to Mortgages.
ARTICLE 26.

AMENDMENT OF DECLARATION OF CONDOMINIUM

This Declaration may be amended as follows;

Section 26.1 Amendments Proposed bv Association. An amendment or


amendments to this Declaration may be proposed by the Board of Directors of the Association
acting upon a vote of a majority of the Directors, or by the members of the Association owning a
majority of the Units, whether meeting as members or by instrument in writing signed by them.
Upon any amendment or amendments to this Declaration being proposed by said Board of
Directors or members, such proposed amendment or amendments shall be transmitted to the
President of the Association, or other officer of the Association in the absence of the President,
who shall thereupon call a Special Meeting of the members of the Association for a date not later
than sixty (60) days from receipt by him of the proposed amendment or amendments. It shall be
the duty of the Secretary to give to each member written or printed notice of such Special
Meeting, stating the time and place thereof, and reciting the proposed amendment or
amendments in reasonably detailed form, which notice shall be mailed not less than fourteen (14)
days nor more than forty-five (45) days before the date set for such Special Meeting. If mailed,
such notice shall be deemed to be properly given when deposited in the United States Mail
addressed to the member at his Post Office address as it appears on the records of the

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^7

Association, the postage thereon prepaid. Any member may, by written waiver of notice signed
by such member, waive such notice, and such waiver, when filed in the records of the
Association, whether before or after the holding of the Meeting, shall be deemed equivalent to
the giving of notice to such member. At the meeting, the amendment or amendments proposed
must be approved by an affirmative vote of at least sixty-seven percent (67%) of the votes in the
Association which are allocated to Owners in the Condominium in order for such amendment or
amendments of this Declaration to be adopted. Any such amendment or amendments as adopted
shall be transcribed and certified by the President and Secretary of the Association as having
been duly adopted. The original or an executed copy of such amendment or amendments, so
certified and executed with the same formalities as a deed, shall be recorded in the Register of
Deeds, such amendment or amendments to specifically refer to the recording data identifying this
Declaration. Thereafter, a copy of said amendment or amendments in the form in which the
same were placed of record by the officers of the Association shall be delivered to the Owners of
all Units, but deliveiy of a copy thereof shall not be a condition precedent to the effectiveness of
such amendment or amendments.

As an alternative to holding a meeting of the members to consider an amendment


of this Declaration, a written agreement may be circulated among the members. To be effective,
the written agreement must be executed by Owners of Units to which at least sixty-seven percent
(67%) of the votes of the Association are allocated. Once approved, the amendment or
amendments shall be transcribed, certified, executed, recorded and a copy sent to all Owners as
specified above.

Section 26.2 Amendments bv Declarant. A Declarant may amend the


Declaration as set forth herein and in the Act without the consent of any other Person or the
Association to exercise Development Rights.

Section 26.3 Amendments Requiring Declarant Consent. During the


Development Period, this Declaration may not be amended without the prior written consent of
the Declarant. Except to the extent expressly permitted by the Act or other provisions of this
Declaration (in compliance with the Act), no amendment may create or increase special
Declarant Rights, create or increase Development Rights, increase the number of Units, change
the boundaries of any Unit, change the allocated interest of any Unit, or change the uses to which
any Unit is restricted in the absence of unanimous consent of the Owners.

Section 26.4 Amendments of a Material Nature. Notwithstanding the above,


an amendment to this Declaration of material nature must be approved by (i) an affirmative vote
of at least sixty-seven percent (67%) of the votes in the Association which are allocated to
Owners in the Condominium and (ii) Mortgagees that represent at least fifty-one percent (51%)
of the votes allocated to Units subject to Mortgages. The approval requirement set forth in this
section does not apply to amendments to this Declaration made by Declarant as an exercise of a
Development Right as set forth in Article 27. A change to any provisions of this Declaration
governing the following would be considered material for purposes of this section:

(a) Voting rights.

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Page 38 of 52

(b) Assessment liens or the priority of assessment liens.

(c) Reductions in reserves for maintenance, repair, and replacement of


Common Elements.

(d) Responsibility for maintenance and repairs.

(e) Reallocation of interests in the Common Elements or Limited


Common Elements, or rights to their use; except when Limited
Common Elements are reallocated by Declarant pursuant to any rights
reserved by Declarant pursuant to Article 27 and by agreement
between Owners (only those Owners and only the Mortgagees
holding Mortgages against those Units need approve the action).

(f) Redefinitions of boundaries of Units, except pursuant to any rights


reserved by Declarant pursuant to Article 27.

(g) Convertibility of Units into Common Elements or Common Elements


into Units.

(h) Expansion or contraction of the Condominium, or the addition,


annexation, or withdrawal of property to or from the Condominium.

(i) Property or Fidelity insurance requirements.

(j) Imposition of any restrictions on the leasing of Units.

(k) Imposition of any restrictions on Owners' right to sell or transfer their


Units.

(I) Restoration or repair of the Condominium, in a manner other than that


specified in the Association Documents, after hazard damage or
partial condemnation.

(m) Any provision that expressly benefits Mortgagees, insurers, or


guarantors.

Approval is assumed when a Mortgagee fails to submit a response to any written proposal for an
amendment to this Declaration within sixty (60) days after it receives proper notice of the
proposal, provided the notice was delivered by certified or registered mail, with a return receipt
requested.

Section 26.5 Amendments Requiring Consent of Lienholder. Notwithstanding


anything in this Article 26, elsewhere in this Declaration, or in any of the Association
Documents, no amendment(s) to any of the Association Documents that limit, impair, or modify
the rights and interests of Lienholder, may be approved without the express written consent of

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Page 39 of 52

the Lienholder. Any such amendment(s) to the Association Documents adopted without the
express written consent of the Lienholder shall not in any manner limit, impair, or modify the
rights and interests of the Lienholder.
ARTICLE 27.

SPECIAL DECLARANT RIGHTS AND DEVELOPMENT


RIGHTS RESERVED UNTO DECLARANT

In addition to each and every right of Declarant as set forth in this Declaration,
Declarant, its successors and assigns, specifically reserves all Special Declarant Rights and
Development Rights hereinafter set forth.

Section 27.1 Special Declarant Rights Reserved bv Declarant.

(a) Ail Special Declarant Rights, as that term is defined in the Act, and
any other Special Declarant Rights as are set forth in the Act and the Association Documents.

(b) The right to use any portion or all of the Common Elements for the
purpose of aiding in the sale or rental of Units. The foregoing right shall include the right to
display and erect any signs, billboards, and placards and to store, keep and exhibit same and to
distribute audio and visual promotional materials upon the Common Elements.

(c) The right to maintain sales offices, management offices and models
in any and/or all of the Units owned or leased by Declarant. Any Units leased or owned by
Declarant may be used by Declarant for such purposes, and such offices and models may be
relocated as Units are sold or leases expire.

(d) The right to declare and utilize such easements as more particularly
set forth in Section 7.3 of this Declaration.

(e) The right to exercise any Development Right.

(f) The right to perform construction work, and to store materials in


secure areas, in Units, and in Common Elements, and the further right to control all such work
and repairs, and the right of access thereto, until its completion. All work may be performed by
Declarant without the consent or approval of the Board. Declarant has such an easement through
the Common Elements as may be reasonably necessary for the purpose of discharging
Declarant's obligations or exercising Declarant's Development Rights and Special Declarant
Rights, whether arising under the Act or reserved in this Declaration. Such easement includes
the right to convey utility and drainage easements to public utilities, municipalities, and other
entities to fulfill the plan of development.

(g) The right to appoint, remove, and replace the members of the Board
pursuant to Article 4 of the Bylaws.

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Page 40 of 52

Section 27.2 Development Rights Reserved bv Declarant.

(a) All Development Rights as the same are defmed in this Declaration
and in the Act.

(b) The rights to: subdivide Units; convert Units into the Common
Elements; and, withdraw property. Units and Common Elements from the Condominium.

(c) The Development Rights reserved by Declarant must be exercised


within the Development Period.

(d) The exercise of any or all of the Development Rights reserved by


Declarant shall be pursuant to, and subject to the provisions of, the Act.

Section 27.3 Limitation on Special Declarant Rights. The Special Declarant


Rights reserved by Declarant shall terminate no later than the expiration of the Development
Period.

Section 27.4 Declarant's Personal Propertv. Declarant reserves the right to


retain all personal property and equipment used in the sales, management, construction, and
maintenance of the improvements within the Condominium that has not been represented as
property of the Association. Declarant reserves the right to remove from the Property any and all
goods and improvements used in development, marketing, and construction, regardless of
whether they have become fixtures.

Section 27.5 Phasing of Development Rights.

(a) Declarant reserves the right to exercise any of the Development


Rights with respect to the Units owned by Declarant at different times. No assurances are made
by Declarant regarding the Units owned by Declarant as to when Declarant may exercise its
Development Rights or in what order. No assurances are made by Declarant regarding whether
all of the Units Declarant reserves the right to create will be created. The exercise of any
Development Right as to some of the Units owned by Declarant will not obligate Declarant to
exercise any of Declarant's Development Rights as to other Units owned by Declarant.
Section 27.6 Interference with Special Declarant Rights and Development
Rights.

(a) Neither the Association nor any Owner may take any action or adopt
any rule that will interfere with or diminish any Special Declarant Right or Development Right
without the prior written consent of Declarant.

(b) In relation to Declarant's exercise of any Special Declarant Right and


Development Right the provisions of the Declaration which prohibit or require approval of
construction of or additions or alterations to any improvements shall not be applicable.

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Page 41 of 52

11

Section 27.7 Assignment of Declarant's Rights and Duties. Any and/or all of
the rights, powers and reservations of Declarant herein contained may be assigned by Declarant
to any Person which will assume any and/or all of the duties of Declarant hereunder, and upon
any such person, corporation or association's evidencing its consent in writing to accept such
assignment, said assignee shall, to the extent of such assignment, assume Declarant's duties
hereunder, have the same rights and powers and be subject to the same obligations and duties as
are given to and assumed by Declarant herein. Upon such assignment, and to the extent thereof.
Declarant shall be relieved from all liabilities, obligations, and duties hereunder. Declarant may
limit and restrict the rights and powers which are assigned to any person, corporation, or
association in the instrument which assigns such rights. The term "Declarant" as used herein
includes all such assignees and their successors and assigns, subject to such restrictions or
limitations as may be imposed in the instrument assigning such rights.

Section 27.8 Assignment of Declarant's Rights to Lienholder or Purchaser at


Foreclosure Sale. If and in the event of a default in the loan documents evidencing Lienholder's
Lien on any portion of the Condominium, Lienholder shall have the right, but not the obligation,
to request and require its trustee, substitute trustee, or other person exercising the rights of the
power of sale contained in any of its loan documents to transfer and assign the rights reserved in
this Article 27 to Lienholder or any purchaser at a foreclosure sale.
ARTICLE 28.

CONFLICT WITH CONDOMINIUM ACT: SEVERABILITY

Should any of the terms, conditions, provisions, paragraphs or clauses of this


Declaration conflict with any provisions of the Condominium Act, the provisions of the
Condominium Act shall control unless the Condominium Act permits the Declaration to override
the Condominium Act, in which event the Declaration shall control. In the event that any of the
terms, provisions or covenants of this Declaration are held to be partially or wholly invalid or
unenforceable for any reason whatsoever, such holding shall not affect, alter, modify or impair in
any manner whatsoever any of the other terms, provisions or covenants hereof or the remaining
portions of any terms, provisions or covenants held to be partially invalid or unenforceable.

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Page 42 of 52

^11

ARTICLE 29.

LIBERAL CONSTRUCTION

The provisions of this Declaration shall be liberally construed to effectuate its


purpose of creating a uniform plan of condominium ownership. Throughout this Declaration
wherever appropriate the singular shall include the plural and the masculine gender shall include
the feminine or neuter. The Article headings are for convenience of reference only and shall not
be considered terms of this Declaration.

ARTICLE 30.

DECLARATION BINDING ON ASSIGNS


AND SUBSEOUENT OWNERS

The restrictions and burdens imposed by the covenants of this Declaration are
intended to and shall constitute covenants running with the land, and shall constitute an equitable
servitude upon each Unit and its appurtenant undivided interest in the Common Elements, and
this Declaration shall be binding upon Declarant, its successors and assigns, and upon all parties
who subsequently may become Owners of Units in the Condominium, and their respective heirs,
legal representatives, successors and assigns.
ARTICLES].

ASSOCIATION RECORDS/INSPECTION

The Association shall keep and maintain as permanent records those designated
in N.C. Gen. Stat. § 55A-16-01 and N.C. Gen Stat, § 47C-3-118. Those records shall be
available for inspection and copying by Members of the Association pursuant to the provisions
ofN.C. Gen. Stat. § 55A-16-02.

ARTICLE 32.

CONDEMNATION

In the event of a taking by eminent domain, or by a conveyance in lieu thereof, of


all or any part of the Property, the same shall be repaired or restored, and/or the awards paid on
account thereof shall be used and applied in accordance with N.C. Gen. Stat. §47C-1-107.
ARTICLE 33.

TAXES

Pursuant to the provisions of N.C. Gen. Stat. § 47C-1-105, each Unit and its
appurtenant undivided interest in the Common Elements shall be deemed to be a parcel and shall

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Page 43 of 52

be separately assessed and taxed by each assessing unit and special district for all types of taxes
authorized by law, including but not limited to special ad valorem levies and specitd assessments.
Each Owner shall be liable solely for the amount of taxes against his individual Unit and shall
not be affected by the consequences resulting from the tax delinquency of other Owners. Neither
any building, the Property nor any of the Common Elements shall be deemed to be a parcel.
Provided, however, pursuant to the provisions of N.C. Gen. Stat. § 47C-1-105, any areas in
which Declarant has Development Rights shall be separately taxed and assessed against
Declarant until Declarant exercises Declarant's Development Rights therein or Declarant's
Development Rights expire, terminate or are released by Declarant.
ARTICLE 34.

LITIGATION

Except as provided below, no judicial or administrative proceeding shall be


commenced or prosecuted by the Association unless approved by a vote of sixty-seven percent
(67%) of the Members and the consent of Declarant during the Development Period. This
Section shall not apply, however, to (a) actions brought by the Association to enforce the
provisions of the Association Documents (including, without limitation, the foreclosure of liens);
(b) the imposition and collection of assessments as provided in Article 22; (c) proceedings
involving challenges to ad valorem taxation: or (d) counterclaims brought by the Association in
proceedings instituted against it. This Section shall not be amended unless such amendment is
approved by the percentage of votes, and pursuant to the same procedures, necessary to institute
proceedings as provided above.
No judicial, quasi-judicial, administrative or governmental proceeding shall be
commenced or prosecuted by the Association against or involving Declarant unless approved by
a vote of seventy-five percent (75%) of the Members.
IN TESTIMONY WHEREOF, Declarant has caused this instrument to be
executed under seal and in such form as to be binding, all by authority duly given, this the day
and year first above written.

BELLFIELD 417 MARKET. LLC (SEAL)

_(SEAL)
Member/Manager

37

Book: 6034 Page: 1913 Page 43 of 52


Page 44 of 52

STATE OF AROLmA-
COUNTY OF

1 certify that the following person personally appeared before me this day, acknowledging to me
that he signed the foregoing document for the purpose(s) stated therein, in the capacity indicated
therein: ixVvv^TWj *7^51

Date
Signature ofNotafyTublic

\^p\nrkA\\ rSorbSnn
Notajy's printed or typed name

My commission expires: \7^1^'7qF^

(Official Seal)

KENDALL SANDERSON
Notary Public - State of South Carol np
My Commission Exp'res December 12,2129

Notary seal or stamp must appear within this box.

ND: 4817-9933-4789, v. 4

38

Book: 6034 Page: 1913 Page 44 of 52


Page 45 of 52

EXHIBIT A

(Legal Description - Condominium Property)

LYING AND BEING In the City of Ashevllle, County of Buncombe, North Carolina and

BEING all of lots 26 and 27 of Block 2, as shown on that plat recorded in Plat Book 154, at Page 159
("Plat") of the Office of the Register of Deeds for Buncombe County ("Registry"), reference to said plat
being made for a more particular description of said Lots and also being further described as follows:
BEGINNING at a stake in the western margin of Market Street at the northeastern corner of Lot 28,
Block 2 of the aforesaid Plat and running with the western margin of Market Street, North 14* 30' West
48 feet to a stake in the western margin of Market Street at the southeastern comer of Lot 25, Block 2
of said Plat; thence along and with the southern margin of Lot 2, South 75' 5* West 140 feet more or less
to a stake in the eastern margin of an alley and also being the southwestern comer of Lot 25, Block 2;
thence South 13' East along and with the eastern margin of said alley 48 f^t to a stake at the
northwestern corner of Lot 28; thence with the northern line of Lot 28, Block 2, North 75' 05' East 140
feet nrK)re or less to the point artd place of BEGINNING.

Book: 6034 Page: 1913 Page 45 of 52


Page 46 of 52

'Vib

EXHIBIT B

For survey and plat and plans see Plat Cabinet ^ at Slides U[_^through
^"^n the office of the Register of Deeds of Buncombe County.

Book: 6034 Page: 1913 Page 46 of 52


Page 47 of 52

EXHIBIT C

(ALLOCATIONS)

Unit# Heated Undivided Portion of Vote

Square Interest in ' Common Allocated


Footage Common Expenses to Unit
Elements Allocated to
Appurtenant Unit
to Unit

ICQ 1,260 6.19% 6.19% 1

101 1,587 7.79% 7.79% 1

102 1,033 5.07% 5.07% 1

103 1,005 4.94% 4.94% 1

200 1,262 6.20% 6.20% 1

201 1,257 6.17% 6.17% 1

202 1,417 6.96% 6.96% 1

203 1,449 7.12% 7.12% 1

301 1,267 6.22% 6.22% 1

302 1,370 6.73% 6.73% 1

303 2,712 13.32% 13.32% 1

401 2,452 12.04% 12.04% 1

402 2,289 11.24% 11,24% 1

Total: 20,360 100.00% 100.00% 13

*Roundec perN.C. Gen. Stat. Section 47C-2-107(d)

Book: 6034 Page: 1913 Page 47 of 52


Page 48 of 52

EXHIBIT D

USE RESTRICTIONS

1. Use. The property described in Exhibit A shall be used only for single family residential,
recreational, and related purposes (which may include, without limitation, offices for any
property manager retained by the Association or business offices for Declarant or the
Association consistent with this Declaration and any Supplemental Declaration), subject
to applicable laws.

2. Nuisances. No immoral, improper, offensive or unlawful use shall be made of any Unit
or of the Common Elements, nor any part thereof, and all laws, zoning ordinances and
regulations of all governmental authorities having jurisdiction of the Condominium shall
be observed. No Owner of any Unit shall permit or suffer anything to be done or kept in
his Unit, or on the Common Elements, which will increase the rate of insurance on the
Condominium, or which will obstruct or interfere with the rights of other occupants of
the Condominium or annoy them by unreasonable noises, nor shall any Owner undertake
any use or practice which shall create and constitute a nuisance to any other Owner of a
Unit, or which interferes with the peaceful possession and proper use of any other Unit or
the Common Elements.

3. Leasing. Nothing contained herein shall prohibit the leasing or renting of a Unit;
provided, however, that:

a. All leases for any Unit shall be in writing signed by the Owner and the tenant.

b. All leases shall be in such form, and contain such provisions, as approved by the
Board, including provisions (a) requiring the tenant to comply with the
Association Documents, (b) providing that the failure of any tenant under a lease
to comply with the Association Documents shall constitute an event of default
under the lease, and (c) providing that the Association may exercise any and all
remedies for a default under the Association Documents against the Owner and
the tenant under the lease including, without limitation, the right to remove a
tenant from possession of a Unit by judicial process or otherwise.

c. A true executed copy of any lease for a Unit shall be provided to the Association
prior to the occupancy by the tenant of such Unit. For purposes of this
Declaration, "leasing" is defined as regular exclusive occupancy of a Unit by any
Person other than the Owner, for which the Owner receives any consideration or
benefit including, but not limited to, a fee, service, gratuity, or emolument. The
Board may adopt reasonable additional restrictions and rules regulating leasing
and subleasing of Units.

4. Pets. The Association may adopt reasonable rules regarding household pets designed to
minimize damages to the Property and disturbances to other Owners and occupants.

Book: 6034 Page: 1913 Page 48 of 52


Page 49 of 52

including rules requiring damage deposits, waste removal, leash controls, noise controls,
pet occupancy limitations or prohibitions based on size of the Unit and fair share use of
the Common Area. Nothing in this provision shall prevent the Association from
requiring removal of any animal that presents an actual threat to the health or safety of
residents or from requiring abatement of any nuisance or unreasonable source of
annoyance. No Owner shall be permitted to raise, breed or keep mammals, birds, fish, or
reptiles of any kind for commercial or business purposes.
5. Restricted Activities. The following activities are prohibited within the Condominium:
a. Any activity which violates local, state or federal laws or regulations;

b. Use or discharge of any radio, loudspeaker, horn, whistle, bell, or other sound
device so as to be audible to occupants of other Units, except alarm devices used
exclusively for security purposes;

c. Use of any Unit for a Business and Trade, garage sale, moving sale, rummage
sale, or similar activity, except that an Owner or occupant residing in a Unit may
conduct business activities within the Unit so long as: (i) the existence or
operation of the business activity is not apparent or detectable by sight, sound, or
smell from outside the Unit; (ii) the business activity conforms to all zoning
requirements for the Property; (iii) the business activity does not involve door-to-
door solicitation of residents of the Property; (iv) the business activity does not, in
the Board's reasonable judgment, generate a level of vehicular or pedestrian
traffic or a number of vehicles being parked in the Property which is noticeably
greater than that which is typical of Units in which no business activity is being
conducted; and (v) the business activity is consistent with the residential character
of the Property and does not constitute a nuisance, or a hazardous or offensive
use, or threaten the security or safety of other residents of the Property, as may be
determined in the sole discretion of the Board. For purposes of this Declaration,
leasing or renting a Unit shall not be considered a Business or Trade.
6. Window Coverings. Window coverings which are visible to the outside view shall be
white backed, or meet such other criteria as the Board may prescribe, or shall be
approved by the Board prior to installation, and in all events shall be harmonious with
exterior design, color and odier Units as determined by the Board. No window coverings
shall be installed or replaced without the prior written approval of the Board

7. Personal Propertv in Common Elements. Without the prior written consent of the Board,
no structure or personal property shall be placed or permitted to remain on any balcony,
railing or other portion of the Common Elements, including Limited Common Elements.
8. Food Preparation. Food preparations shall not be permitted in the Common Elements,
including the use of exterior cooking equipment, except as may be approved in advance
by the Board or pursuant to rules and regulations promulgated by the Board.

Book: 6034 Page: 1913 Page 49 of 52


Page 50 of 52

9. Flags/Signs. No Owner shall post or display any sign, decoration, art work, flag, or
banner either upon the Common Elements, Limited Common Elements or within his Unit
which is visible from any Common Elements unless approved in writing by the Board.
Notwithstanding any provision of this Declaration, no rule or regulation adopted by the
Board of Directors, nor any amendment to the Declaration adopted by the Association or
the Declarant shall regulate or prohibit the display of the flag of the United States of
America and/or the flag of the State of North Carolina, of a size no greater than four (4)
feet by six (6) feet, which is displayed in accordance with or in a manner consistent with
the patriotic customs set forth in 4 U.S.C. §§ 5-10, as amended. The provisions of this
restriction shall not be implemented to interfere with the rights of Declarant pursuant to
its Special Declarant Rights more particularly described in Article 27.

Book: 6034 Page: 1913 Page 50 of 52


Page 51 of 52

CONSENT OF LIENHOLDER

United Bank, a Virginia banking corporation, successor by merger to CresCom


Bank, Beneficiary pursuant to the Deed of Trust recorded in Book 5644, at Page 1396 in the
office of the Register of Deeds of Buncombe County, North Carolina, hereby executes this
Consent of Lienholder to (a) consent to the imposition of the condominium form of ownership
on the property described in the Exhibit A and (b) to the Declaration of 17 North Market Street
Condominium, and any amendments to the Declaration.
IN TESTIMONY WHEREOF, Beneficiaiy has properly executed this Consent of
Lienholder, this 3 day of . 2021.

UNITED BANK, A VIRGINIA BANKING


CORPORATION, SUCCESSOR BY MERGER TO
CRESCOM BANK

By:
Name: /IJiaai
Title: £l/P

Book: 6034 Page: 1913 Page 5 lot 52


Page 52 of 52
fjt

STATE OF NORJH CAROLINA


COUNTY OFlVy/

I certify that the following person personally appeared before me this day, acknowledging to me
that he signed the forgoing ^ci^e^ f9(^e purpose(s) stated therein, in the capacity indicated
therein: fi/yifYI

Date:
\ofNotary firnic

Notary'
intEeioac-
or typed name

My commission expires:

(Official Seal)

MEGAN T VAN BECELAQRE


Noteiy Public
trades Co.. North CafoTifla
My Commission Expires May 5,2^1

Notary seal or stamp must appear within this box.

Book: 6034 Page: 1913 Page 52 of 52


ORDINANCE NO. 4637

ORDINANCE AMENDING CHAPTER 7 OF THE CODE OF ORDINANCES OF THE CITY


OF ASHEVILLE TO DEFINE LODGING TYPES AND AMEND THE TABLE OF USES

WHEREAS, the City of Asheville has the authority pursuant to Part 3 of Article 19 of
Chapter 160A of the North Carolina General Statutes, to adopt zoning regulations, to establish
zoning districts and to classify property within its jurisdiction according to zoning district, and
may amend said regulations and district classifications fiom time to time in the interest of the
public health, safety, and welfare; and

WHEREAS, the Unified Development Ordinance (Chapter 7 of the City Code of


Ordinances) provides standards for various foims of lodging uses and developments which
should be expanded and updated to be consistent with city goals and plans; and

WHEREAS, this Ordinance is determined to be reasonable, in the public interest, and is


consistent with the Comprehensive Plan in the following ways:

(1) Modifies development standards to promote harmony and compatibility with


surrounding neighborhoods, and

(2) Defines and provides greater clarity and consistency with respect to lodging related
land uses.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF


ASHEVILLE THAT:

Section 1: Chapter 7 of the Code of Ordinances of the City of Asheville is hereby amended
as follows:

a. Sec. 7-2-5 is amended by updating the following definitions:

Bed and bi-ealfast inn means a private resident-occupied dwelling unit with
four to eight guest rooms where overnight lodging accommodations, with or
without a moming meal, are provided to transients for compensation and where
the bed and breakfast inn is operated primarily as a business.

Boardinghoiise means a resident-occupied dwelling unit which provides


housing for compensation to more than four unrelated individuals; is enclosed
witliin one stiucture witli only one kitchen and other shared common areas such
as a dining room, living room or study area, and no dining facilities or kitchens in
the lodgers' rooms. In no case shall tenant rooms be rented or leased for intei'vals
of less than one month.

EXHIBIT
Dwelling unit means one or more rooms physically arranged so as to create an
independent housekeeping establishment for occupancy by one family with
separate toilets, sleeping rooms, and a kitchen. A dwelling unit rented or leased
for intervals of less than one month is considered a "Lodging** use under this
UDO.

Homestay means a private, resident occupied dwelling unit, with up to two


guest rooms where overnight lodging accommodations are provided to transients
for compensation and where the use is subordinate and incidental to the main
residential use of the building. A homestay is considered a "Lodging" use under
this UDO.

b. Sec. 7-2-5 is amended by adding the following definitions:

Family means one or more persons related by blood, adoption, or marriage; or a group
of not more than five unrelated persons; or a number of persons not exceeding two, who
are separate from, and in addition to, the persons related by blood, adoption, or marriage.
For the purposes of this chapter, all members of a family shall live and cook together as a
single housekeeping unit in a single dwelling unit.

Guest room means an individually secured sleeping room or a suite, with or without
sanitation facilities, but which does not contain a kitchen.

Hotel, extended stay means a commercial lodging establishment, under single


management with on-site supervisory personnel, containing 21 or more individual units
each providing accommodations for sleeping, sanitation and a kitchen and which may
contain ancillary facilities or services such as restaurants, bars, coffee shops, exercise
rooms, swimming pools, spas and meeting rooms.

Hotel, large means a commercial lodging establishment, under single management


with on-site supervisory personnel, containing 21 or more guest rooms offered to the
general public for transient lodging accommodations and which may contain ancillary
facilities or services such as restaurants, bars, coffee shops, exercise rooms, swimming
pools, spas and meeting rooms.

Hotel, small means a commercial lodging establishment, under single management


with on-site supervisory personnel, containing 7-20 guest rooms offered to the general
public for transient lodging accommodations and which may contain ancillary facilities
or services such as restaurants, bars, coffee shops, exercise rooms, swimming pools, spas
and meeting rooms.
Kitchen means an area within a stmcture that is used or designed to be used for the
preparation or cooking of food and that contains one or more of the following:
1. Cooking appliances or ix)ugh in facilities for such appliances including, but not
limited to: ovens, convection ovens, stoves, stove tops, built-in grills or built-in
microwave ovens or similar appliances, 240 volt electrical outlets or any gas lines,
or

2. A sink less than 18 inches in depth with a waste line drain 1 '/a inches or greater in
diameter, or

3. A refrigerator exceeding five cubic feet in capacity or space opening with an


electrical outlet tliat may reasonably be used for a refrigerator exceeding five cubic
feet in capacity.

Short-term vacation rental means a dwelling unit with up to six guest rooms that is
used and/or advertised through an online platform, or other media, for transient
occupancy for a period of less than one month. A short-term vacation rental is considered
a "Lodging" use under this UDO.

c. Sec. 7-2-5 is amended by deleting the following definition:

Vacation resort lodging.

d. Sec, 7-5-2(c) is amended by Inserting an new item "(4)" to read as follows:


(4) Annual zoning permits. An annual zoning permit is required for certain land uses
including homestays and short-term vacation rentals. Annual zoning permits must be
renewed each year before the expiration date and in accordance with the teims of
this UDO. Failure to timely renew the annual zoning permit will result in an
expiration of that permit, and can result in a voluntaiy forfeiture of all legal rights
and claims to continue that use. See Sec. 7-17-3.

e. Sec. 7-5-9(a)(l)(a) is amended by deleting item "5."

f. Sec. 7-5-9.1(a)(l) is amended by deleting item "c."

g. Sec. 7-7-8(b) is amended as follows:

(b) Conditional zoning districts. Conditional zoning is available to any of the general
zoning classifications enumerated in this ordinance, except for those that require a
master plan as part of the application (e.g. Urban Village). Expansion zoning
districts are only allowed as conditional zoning disti icts for Level III projects and as
otheiwise indicated in the Table of Permitted Uses and this UDO. Applicants for
Level III projects shall select the most applicable expansion district based on the
proposed use(s). The conditional zoning designation shall be indicated on all zoning
maps and other official documents with the suffix, "CZ" (e.g. RM-8 CZ; IND CZ;
COMEXPCZ)

h. Sec. 7-8-l(d) Table of Penniited Uses ^^Lodging" section is amended as follows:


Bed & bieanast inns

Campground

Hotel, exreneed stay

Hotel, large

snon-term vacanen
rentar
i. Sec. 7-8-28(3.2) Penuilted Use Table (Haywood Road Foi*m Code), is amended as
follmvs:

Core Expan Corri Tradit Live- Town Special


HR-1 sion dor lonal Work HR-6 Standards
HR-2 HR-3 HR-4 HR-5

Lodglng■^

Bed and breakfast inn _ s S S 8 S Subsection


7-l6-1(c)(10)

Boardinghouse — S S 8 —
S Subsection
7-16-1(c)(11)

Homestay — S S 3 8 S Subsection
7-16-1 (c)(9)

Hotel, extended stay

Hotel, large

Hotel, small

Short-termvacation Subsection
rental 2dM(c)(64.1)

j. Sec. 7-8-29(3.2) Permitted Use Table (RAD Road Foi*m Code), is amended as follows:

RAD RAD RAD RAD RAD RAD RAD Special


■RES -LYH -NT -SHP -RIV -IND -OSP Standards

Lodging
Bed and breakfast inn S S S 8 8 — —
Subsection
7-16-1(c)(10)

S 8 8 8 8 Subsection
Boardinghouse
— —

7-16-1(c)(11)

Campground/RV Park — — — —
8 — —

Homestay 8 8 8 8 8 — —
Subsection
7-16-1 (c)(9)

Hotel, extended stay

Hotel, large

Hotel, small

Short-term vacation Subsection


rental 7-ie-1(c)(64.1)

k. Sec. 7-8-40(b) (CBD Expansion District) is amended as follows:

CommGrclal/Buslness/ Office Uses All uses allowed in the Central Business


District (see 7"8-1) within the Table of
Permitted Uses are permitted In the CBD EXP,
Homestay, Hotel (large, small & extended
stay), Short-term vacation rental.

I. Sec. 7-8-42(b) (Commercial Expansion District) is amended as follows:

CommercfaV Eating and drinking establishments. Nightclubs, MIcrobreweries, Recreational


Business/ uses Commercial, Clinics, Clinics veterinary, iWovie theaters. Office, Financial
Office Uses services, Flea markets. Funeral homes, Hotel (large, small & extended stay).
Retail, Research and technology production uses. Self storage, Studios (Low
and High impact). Galleries, Taxistand

m. Sec. 7-8-45(b) (Lodging Expansion Distiict) is amended as follows:


Commercial/Business/ Eating and drinking estabiishments, Nightclubs, Recreationai uses
Office Uses commerciai, Bed & Breakfast Inn, Boardinghouse, Campground, Hotel
(large, small & extended stay) Short-term vacation rental, Office

n. Sec. 7-8-46(b) (Mixed Use Expansion District) is amended as follows:

Commercial/ Eating and drinking estabiishments, Nightciubs, Microbreweries, Recreationai


Business/ uses, Commerciai, Office, Ciinics, Ciinics veterinary, Financiai services, Heaith
Office Uses and Fitness, Homestay, Hoteis (large, small & extended stay), Instructional
services. Laundry/dry cleaning. Research and technology production uses,
Retail, Short-term vacation rental. Taxi, Gallery, Studio/workshop: low impact

0. Sections 7-16-1 (b)(9), (10) & (11) are amended as follmvs:

(9) Homestays. All districts as noted in sections 7-8-1(d) Table ofPermitted Uses and
sections 7-8-28(3.2) and 7-8-29(3.2) Permitted Use Table.
(10) Bed and brealfast inns. All districts as noted in sections 7-8-i(d) Table of Permitted
Uses and sections 7-8-28(3.2) and 7-8-29(3.2) Permitted Use Table.
(11) Boardinghouse.-kW districts as noted in sections 7-8-1(d) Table ofPennitted Uses
and sections 7-8-28(3.2) and 7-8-29(3.2) Permitted Use Table.

p. Sec. 7-16-l(b) is amended by inserting new ^'(64.1)'' to read as follows:

(64.1) Short-term vacation rental. All districts as noted in sections 7-8-1(d) Table of
Permitted Uses and sections 7-8-28(3.2) and 7-8-29(3.2) Permitted Use Table.

q. Sections 7-16-l(c)(9)(a), (10)(a) & (ll)(a) are amended as follows:

(9) Homestays.
a. Use districts: All districts as noted in sections 7-8-1(d) Table of Permitted Uses and
sections 7-8-28(3.2) and 7-8-29(3.2) Permitted Use Table.
(10) Bed and brealfast inns.
a. Use districts: All districts as noted in sections 7-8-1(d) Table ofPermitted Uses and
sections 7-8-28(3.2) and 7-8-29(3.2) Pennitted Use Table.
(11) Boardinghottse.
a. Use districts: All districts as noted in sections 7-8-1 (d) Table of Permitted Uses and
sections 7-8-28(3.2) and 7-8-29(3.2) Permitted Use Table.
r. Sec. 7-16-l(c) is amended by inserting a new "(64.1)" to read as follows:

(64.1) Short-term vacation rental.


a. Use districts: All districts as noted in sections 7-8-1(d) Table of Permitted Uses and
sections 7-8-28(3.2) and 7-8-29(3.2) Permitted Use Table.
b. No displays of goods, products, sei-vices, or other advertising shall be visible fiom
outside of the dwelling.
c. No activities other than lodging shall be provided.
d. Off-street parking shall be required per Sec. 7-11-2.
e. No signage shall be allowed for short-term vacation rentals.
f. The lengdi of stay of guests shall be less than one month.
g. Exterior lighting shall be residential in nature and shall comply with the lighting
requirements in the UDO.
h. The short-term vacation rental owner or operator shall maintain liability insurance on
the property, which covers the short-tenn vacation rental use and guests.
i. The short-term vacation rental owner or operator must pay any applicable taxes,
including occupancy and sales taxes, to the appropriate governmental entity.
j. The short-teim vacation rental shall comply with all current and applicable building
codes.
k. The short-term vacation rental must be reviewed annually and inspected for
compliance with the annual zoning permit.

s. Sec. 7-16-l(e)(10) is amended by combining subsections "h" & "m" as follows:


h. No home of less than 3,500 heated square feet, and less than 30 years old shall be
used for a bed and breakfast inn.

["i" thi'ougli 'T' remain unchanged]

Renumber Item "n" to "m"

t. Sec. 7-16-l(b)(71) Vacation resort housing is deleted In its entirety and replaced
with:

(71) [Reserved]

u. Sec. 7-16-1 (c)(71) Vacation resort housing is deleted in its entirety and replaced
>vith:

(71) [Reserved]
V. Sec. 7-17-3 Nonconformhtg Uses is amended by inserting a new item "(f)" that
reads:

(f) Nonconfonning short-term vacation rentals. All lawfully existing nonconforming


lodging facilities which would now be classified as a "short-term vacation rental" may
continue in operation until such time that the lodging use is discontinued for a period
greater than 180 consecutive days. In addition, the short-term vacation rental annual
permit will be required for all nonconforming short-term vacation rentals and failure to
renew said permit before its expiration will also constitute a conclusory presumption that
the lawful nonconformity has ceased for more than 180 consecutive days, and will result
in the voluntary forfeiture of all rights and claims to operate a short-term vacation rental
at the address noted on the permit under this provision.

Section 2t If any section, subsection, sentence, clause, or phiase of this ordinance is, for any
reason, held to be invalid, such decision shall not affect the validity of the remaining portions of
this ordinance. The City Council hereby declares that it would have passed this ordinance, and
each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one
or more sections, subsections, sentences, clauses, or phrases be declared invalid.

Section 3; All ordinances or parts of ordinances in conflict are hereby repealed to the extent
of such conflict.

Section 4: This ordinance will become effective upon adoption.

Read, approved, and adopted this the 9th day of Januaiy, 2018.

'Z'
City Clerk Mayor

10
THECITYOF
ASHEVILLE
w/HUIlNA

NOTICE OF VIOLATION
ZONING ORDINANCE: SHORT TERM RENTALS

March 01,2024

Case No: 24-01498S

Owner Name: MEHTA NISHANT;MEHTA NEETl


Owner Address: PMB 375 245 N HIGHLAND AVE NE STE 230
ATLANTA OA. 30307
Tenant/Business Name:
Tenant/Business Address:

Violation Location: 17 N MARKET ST #100


PIN: 964940487600000

Zoning: CBD

A recent investigation by Code Enforcement staff noted that the property/business noted above is in violation of the Zoning
Requirements of the City of Asheville Unified Development Ordinance, Section 7-2-5 (Short Term Rental). The nature of the
violation is the use of a dwelling unit as a Short-Term Rental (duration of less than one month), which is prohibited in the CBD
district.

You iiave thirty (30) days to correct this violation(s). Please contact this office to discuss what options may be considered to remedy
the violation. You also liave the right to pursue an appeal of this determination before the Asheville Board of Adjustment and may
contact this office for more details regarding this process.

All appeals to the Aslieviile Board of Adjustment must be filed to the City Clerk within thirty (30) days of receiving this
nolice.Should you fail to comply with this Notice witliin thirty (30) days or file an appeal to the Board of Adjustment within thirty
(30) days, you may be assessed a civil penalty of five hundred dollars ($500) per day for the number of days the violation(s)
continues under the provisions of Section 7-18-2(b)(l)(c) of the Unified Development Ordinance. Non-payment of fines may be
pursued by city officials in the Magistrate's Court (Small Claims) of the NC General Court of Justice.

If you believe that you have conccted the cause of the violation, it can be considered conected only when you have notified the
Code Enforcement Official at 259-5829, or 259-5846, or email smorgaii@aslievillenc.gov and the site is inspected and determined
to be in compliance by the Code Enforcement staff. The properly will be monitored for continued compliance for a period of 90
dnys. At the ^ of this period, with no further violations, the case will be officially closed.
wlu
sHaniToriT^gan - CZO ~
II —^
Code Enforcement Official ■

Development City of Asheville 828-259-5846


Services P.O. Box 7148 www.ashevillenc.gov
Department Asheville, NC 28802
3/1/24,11:11 AM 17 n market 100 screen shot 1 2-28-24.PNG

Entire condo In Ashevllle, North Carolina


4 girests • 2 bedrooms • 2 beds • 2.5 batlis $304 night
*4.fi6-37reviews
CHTCK-M

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THECITYOF
ASHEVILLE
HORTH Cfno| iUA

NOTICE OF VIOLATION
ZONING ORDINANCE: SHORT TERM RENTALS

November 21,2023

Case No: 23-07994S

Owner Name: BROWN DUDLEY GEORGE JR


Owner Address: 258 BLANCA ISLES LN
JUPITER FL, 33478
Tenant/Business Name:

Tenant/Business Address:

Violation Location: 17 N MARKET ST 101


PIN: 964940487600000

Zoning: CBD,

A recent investigation by Code Enforcement staff noted that tlie property/business noted above is in violation of the Zoning
Requirements ofthe City of Asheville Unified Development Ordinance, Section 7-2-5 (Short Term Rental). The nature of the
violation is the use of a dwelling unit as a Short-Temi Rental (duration of less than one month), which is prohibited in the CBD
district.

You have thirty (30) days to correct this violation(s). Please contact tliis office to discuss what options may be considered to remedy
tlie violation. You also have the right to pursue an appeal of this determination before the Asheville Boaid of Adjustment and may
contact this office for more details regarding this process. All appeals to the Asheville Board of Adjustment must be filed to the City
Clerk within thirty (30) days of receiving this notice.

Should you fail to comply with this Notice within thirty (30) days or file an appeal to the Board of Adjustment within tliirty (30)
days you may be assessed a civil penalty of five hundred dollars ($500) per day for the number of days the violation(s) continues
under the provisions of Section 7-18-2(b)(l)(c) of itie Unified Development Ordinance. Non-payment of fines may be pursued by
city officials in the Magistrate's Court (Small Claims) of the NC General Court of Justice.
If you believe that you have corrected tlie cause of the violation, it can be considered conected only when you have iiotifi^ the Code
Enforcement Official at 259-5829, or 259-5846, or email smorgaii@ashevillenc.gov Once the site is inspected and detennined to be
In compliance by the Zoning Enforcement staff, the property will be monitored for continued compliance for a period of 90 days. At
the end of this period, with no fiulher violations, the case will be officially closed

ShannonMorgan - CZt
Code Enforcement Official

Development Services City of Asheville *


Department P.O. Box 7148 www.ashevlllenc.gov,
Asheville, NC 28802

THECITYOF
ASHEViLLE
H 0 H t H C /L n (I I I II A

NOTICE OF VIOLATION
ZONING ORDINANCE: SHORT TERM RENTALS

November 29,2023

Case No: 23-08069S

Owner Name: BELLFIELD 417 MARKET LLC

Owner Address: 21 ROSEBAY LN

ASHEVILLE NC, 28803


Tenant/Business Name:

Tenant/Business Address:

Violation Location: 17 N MARKET ST 302

PIN: 964940487600000

Zoning: CBD,

A rccenl invesligalion by Code Enforcement staff noted that the property/business noted above is in violation of the Zoning
Requirements of the City of Asheville Unified Development Ordinance, Section 7-2-5 (Short Tenn Rental). The nature of the
violation is the use of a dwelling unit as a Short-Temi Rental (duration of less than one month), which is prohibited in the CBD
district.

You have thirty (30) days to correct this violatlon(s). Please contact this office to discuss what options may be considered to remedy
the violation. You also have the right to pursue an appeal of this determination before the Asheville Board of Adjustment and may
contact this office for more details regarding this process. All appeals to the Asheville Board of Adjustment must be filed to the City
Clerk within thirty (30) days of receiving this notice.

Should you fail to comply with this Notice within tliirty (30) days or file an appeal to the Board of Adjustment within thirty (30)
days, you may be assessed a civil penalty of five hundred dollars ($500) per day for the number of days the violation(s) continues
under the provisions of Section 7-18-2(b)(l)(c) of the Unified Development Ordinance. Non-payment of fines may be pursued by
city officials in the Magistrate's Court (Small Claims) of the NC General Court of Justice.
If you believe that you have coirected the cause of the violation, it can be considered corrected only when you have notified the Code
Enforcement Official at 259-5829, or 259-5846, or email snio7-gaji@ashevilleiic.gov Once the site is inspected and determined to be
In compliance by (he Zoning Enforcement staff, the property will be monitored for continued compliance for a period of 90 days. At
the end of (his period, with mo fiirther violations, the case will be officially closed.

ShaimonTWorgan - C20
Code Enforcement Official

City of Asheville 828-259-5846


Development Services
Department P.O. Box 7148 wvmv.ashevlllenc.gov
Asheville, NC 28802
A
THECITYOF
ASHEVILLE
14 V HIM rilHIIMHA

NOTICE OF VIOLATION
ZONING ORDINANCE: SHORT TERM RENTALS

November 14, 2023

Case No: 23-07806S

Owner Name: CARISSA ANN BRUNSMAN REVOCABLE TRUST

Owner Address: 202 LAKESHORE DR

MOORESVILLE NO, 28117


Tenant/Business Name:

Tenant/Business Address:

Violation Location: 17 N MARKET ST 103

PIN: 964940487600000

Zoning: CBD,

A recent investigation by Code Enforcement staff noted that the propcrty^usincss noted above is in violation of the Zoning
Requirements of the City of Asheville Unified Development Ordinance, Section 7-2-5 (Short Term Rental). The nature of the
violation is the use of a dwelling unit as a Shorl-Teiin Rental (duration of less than one inontli), which is prohibited in the CBD
district.

You have thirty (30) days to correct this violation(s). Please contact this office to discuss what options may be considered to remedy
the violation. You also have the right to pursue an appeal of tliis detei mination before the Asheville Board of Adjustment and may
contact this office for more details regarding this process. All appeals to the Asheville Board of Adjustment must be filed to the City
Clerk within thirty (30) days of receiving this notice.

Should you fail to comply with this Notice within thirty (30) days or file an appeal to the Board of Adjustment within thirty (30)
days, you may be assessed a civil penalty of five hundred dollars ($500) per day for the number of days the violation(s) continues
under the provisions of Section 7-18-2(b)(l)(c) of the Unified Development Ordinance. Non-payment of fines may be pursued by
city officials in the Magistrate's Court (Small Claims) of the NC General Court of Justice.

If you believe that you have corrected the cause of the violation, it can be considered corrected only wlien you have notified the Code
Enforcement Official at 259-5829, or 259-5846, or email smorgan@asheviUenc.gov Once the site is inspected and determined to be
In compliance by the Zoning Enforcement staff, the properly will be monitored for continued compliance for a period of 90 days. At
^e end of this period, with no fiirthcr violations, the case will be officially closed

City of Asheville 828-259-5846


Development Services
Department P.O. Box 7148 www.a6hevillenc.gov
Asheville. NO 28802
THECITYOF
ASHEVILLE
NOTICE OF VIOLATION
ZONING ORDINANCE: SHORT TERM RENTALS

February 05, 2024

Case No: 24-0085IS

Owner Name: LEGGETT RICK;LEGGETT LYNN


Owner Address: 5 GREGORIENCK
OKATIE SO, 29909
Tenant/Business Name:

Tenant/Business Address:

Violation Location: 17 N MARKET ST 301

PIN: 964940487600000

Zoning: CBD,

A recent investigation by Code Enforcement staff noted that the property/business noted above is in violation of the Zoning
Requirements of the City of Asheville Unified Development Ordinance, Section 7-2-5 (Short Term Rental). The nature of the
violation is the use of a dwelling unit as a Short-Term Rental (duration of less than one month), which is prohibited in the CBD
district.

You have thirty (30) days to correct this violation(s). Please contact this office to discuss what options may be considered to remedy
the violation. You also have the right to pursue an appeal of this detennination before the Asheville Board of Adjustment and may
contact this office for more details regarding this process. All appeals to the Asheville Board of Adjustment must be filed to the City
Clerk within thirty (30) days of receiving this notice.

Should you fail to comply with this Notice within thirty (30) days or file an appeal fo the Board of Adjustment within thirty (30)
days, you may be assessed a civil penalty of five hundred dollars ($500) per day for the number of days the violation(s) continues
under the provisions of Section 7-18-2(b)(l)(c) of the Unified Development Ordinance. Non-payment of fines may be pursued by
city officials in the Magistrate's Court (Small Claims) of the NC General Court of Justice.
If you believe tbat you have corrected the cause of the violation, it can be considered corrected only when you have notified the Code
Enforcement Official at 259-5829, or 259-5846, or email smorgaii@nshevillenc.gov and the site is inspected and determined to be in
compliance by the Code Enforcement staff. The property will be monitored for continued compliance for a period of 90 days. At the
ciW If this perioflMvith no fuhher violations, the case will be officially closed.

Shannon Morgan^ZO '


Code Enforcement Official

City of Asheville 82B-25g-5846


Development Services
Department P.O.Box 7148 wvAv.ashevlllenc.gov
Asheville. NC 28802
THECITYOF
ASHEVILLE
KOHIrt

NOTICE OF VIOLATION
ZONING ORDINANCE: SHORT TERM RENTALS

January 29,2024

Case No: 23-08136S

Owner Name: RJVIECCIO MICHAELjWATTERSON-RIVIECCIO KIMBERLY


Owner Address: 4 LUCIA CT

JUPITER FL, 33478


Tenant/Business Name:

Tenant/Business Address:

Violation Location: 17 N MARKET ST

PIN: 964940487600000

Zoning: CBD,

A recent investigation by Code Enforcement staff noted tliat the property/business noted above is in violation of the Zoning
Requirements of (he City of Asheville Unified Development Ordinance, Section 7-2-5 (Short Term Rental). The nature of the
violation is the use of a dwelling unit as a Short-Temi Rental (duration of less than one month), which is prohibited in the CBD
district.

You have thirty (30) days to correct this violation(s). Please contact this office to discuss what options may be considered to remedy
the violation. You also have the right to pursue an appeal of tliis deteimination before the Asheville Board of Adjustment and may
contact this office for more details regarding this process. All appeals to the Asheville Board of Adjustment must be filed to the City
Clerk within thirty (30) days of receiving tliis notice.

Should you fail to comply with this Notice within thirty (30) days or file an appeal to the Board of Adjustment within thirty (30)
days, you may be assessed a civil penalty of five hundred dollars (S500) per day for the number of days the viola(ion(s) continues
under the provisions of Section 7-18-2(b)( 1 )(c) of the Unified Development Ordinance. Non-payment of fines may be pursued by
city officials in the Magistrate's Court (Small Claims) of the NC General Court of Justice.
If you believe that you have corrected the cause of the violation, it can be considered conected only when you have notified the Code
Enforcement Official at 259-5829, or 259-5846, or email smorgan@fishevUlenc.gov Once the site is inspected and detennined to be
In compliance by the Zoning Enforcement slaff, the property will be monitored for continued compliance for a period of 90 days. At
the end of this period, with no fiirther violations, the case will be officially closed

Shannon Morgan - CZO ^


Code Enforcement Official

City of Asheville 828-259-5846


Development Services
Department P.O. Box 7148 www.ashevillenc.gov
Asheville, NC 28802
THECITYOF
ASHEVILLE
'(i> H ; >1 ./ « 'I 1 I») A,

NOTICE OF VIOLATION
ZONING ORDINANCE: SHORT TERM RENTALS

March 01, 2024

Case No: 24-01501S

Owner Name: CAPUTO CHARLES ANDREW;BRUNSMAN CARISSA ANN


Owner Address: 2269 REDWOOD DR

INDIAN TRAIL NC, 28079


Tenant/Business Name:

Tenant/Business Address:

Violafion Location: 17 N MARKET ST 102

PIN: 964940487600000

Zoning: CBD

A recent investigation by Code Enforcement staff noted that the property/business noted above is in violation of the Zoning
Requirements of the City of Asheville Unified Development Ordinance, Section 7-2-5 (Sliort Term Rental). The nature of the
violation is the use of a dwelling unit as a Short-Term Rental (duration of less than one month), which is prohibited in the CBD
district.

You have thirty (30) days to correct this violalion(s). Please contact this office to discuss what options may be considered to reinedy
the violation, You also have the riglU to pursue an appeal of this determination before the Asheville Board of Adjustment and may
contact this office for more details regarding this process. All appeals to the Asheville Board of Adjustment must be filed to the City
Clerk within thirty (30) days of receiving this notice.

Should you fail to comply with this Notice witlun thirty (30) days or file an appeal to (he Board of Adjustment within thirty (30)
days, you may be assessed a civil penalty of five hundred dollars ($500) per day for the number of days the violation(s) continues
under the provisions ofSectioi] 7-I8-2(b)(l)(c) of the Unified Development Ordinance. Non-payment of fines may be pursued by
city officials in tlie Magistrate's Court (Small Claims) of the NC Genera! Court of Justice.

If you believe that you have corrected the cause of the violation, it can be considered corrected only when you have notified the Code
Enforcement Official at 259-5829, or 259-58-46, or email smorgan@asheviJlenc.gov Once the site is Inspected and determined to be
In compliance by the Zoning Enforcement staff, the property will be monitored for continued compliance for a period of 90 days. At
the end of this period, with no fiirther violations, the case will be officiaUy closed.

Shannon Morgan - CZO


Code Enforcement Official

City of Asheville 828-259-5846


Development Services
Department P.O. Box 7148 wviw.ashevillenc.gov
ht/" --ioono
3/1/24,11:59AM 17 n market si 102 screen shot 1 2-26-24.PNG

iiiMi ]il Showallphotos

Entire condo in Ashevllle, North Carolina


4 guests • 2 bedrooms • 2 beds • 2 baths $304 niglit
■^^Q1.67fevlews

Hosted by Towns
It Supefhosl'Syearshosttng

^ Towns Is a Superhost
Superhosts ere e>^rlerH;ed, highly rated Hosts. You wont be charged yet

Great location
95% of recent guests gave the location a S-star rating.
Cleanlnnfee

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JL
THECITYOF
ASHEVILLE
M ■' H I tl r. A K I I MA

NOTICE OF VIOLATION
ZONING ORDINANCE: SHORT TERM RENTALS

November 14,2023

Case No: 23-07803S

Owner Name: KRUEGER BRETT;PESTA CAROL EMILY WILSON


Owner Address: 1706 DOVE COTTAGE DR

CHARLOTTE NC, 28226


Tenant/Business Name:

Tenant/Business Address:

Violation Location: 17 N MARKET ST 201

PIN: 964940487600000

Zoning; CBD,

A recent investigation by Code Enforcement staff noted that the property/business noted above is in violation of the Zoning
Requirements of the City of Asheville Unified Development Ordinance, Section 7-2-5 (Short Term Rental). The nature of the
violation is the use of a dwelling unit as a Short-Term Retital (duration of less than one month), which is prohibited in the CBD
district.

You have thirty (30) days to conect this violation(s). Please contact this office to discuss what options may be considered to remedy
the violation. You also have the right to pursue an appeal of this determination before the Asheville Board of Adjustment and may
contact this office for more details regarding this process. All appeals to the Asheville Board of Adjustment must be filed to the City
Clerk within thirty (30) days of receiving this notice.

Should you fail to comply with this Notice within thirty (30) days or file an appeal to the Board of Adjustment within thirty (30)
days, you may be assessed a civil penalty of five hundred dollars ($500) per day for the number of days the violation(s) continues
under the provisions of Section 7-18-2(b)(l )(c) of the Unified Development Ordinance. Non-payment of fines may be pursued by
city officials In the Magistrate'sCourt (Small Claims) of the NC General Court of Justice.

If you believe tliat you have coirected the cause of the violation, it can be considered comecled only when you have notified the Code
Enforcement Official at 259-5829, or 259-5846, or email smorgan@asheviUeuc.gov Once the site is inspected and determined to be
In compliance by the Zoning Enforcement staff, the property will be monitored for continued compliance for a period of 90 days. At
file end of this period, with no finllicr violations, the case will be officially closed

"Sfiannon Morgan - CZO 1


Code Enforcement Officil
j1|l
THECITYOF
ASHEVILLE
O H t H I, A H !i I I A

ZONING VIOLATION
CITATION
January 31, 2024
Case No; 23-07803S

Owner Name: KRUEGER BRETT;PESTA CAROL EMILY WILSON


Owner Address: 1706 DOVE COTTAGE DR

CHARLOTTE NC, 28226


Tenant/Business Name:

Tenant/Business Address:

Violation Location: 17 N MARKET ST 201

PIN; 964940487600000

Zoning: CBD,

Dear KRUEGER BRETT;PESTA CAROL EMILY WILSON:

You were served with a Notice of Zoning Violation on I2/I/2023 which described a vioiation(s) of the Zoning
Requirements of the City of Ashevilie Unified Development Ordinance. A copy of that Notice is attached.

Upon recent investigation it was noted that your residence was still being advertised as an active sliort term rental with
active bookings. As a result, a civil penalty of five hundred dollars ($500) is now being assessed as authorized in Section
7-18-2(b)(l)(c) of the Unified Development Ordinance (UDO). Each day that this violation continues will constitute a
separate violation. Additional civil nenalties will be assessed in the amount of five hundred dollars ($5001 for each dav
the violation continues. Non-payment of fines may be pursued by city officials in the Magistrate's Court (Small Claims)
of the NC General Court of Justice.

The citation will remain in effect until the violation is corrected. The violation can be considered corrected only when
you have notified the Development Services Department and the site is determined to be in compliance by the Code
Enforcement staf.f

This civil penalty may be paid between 8:30AM and 5:00 PM, Monday through Friday, at i 61 S Charlotte St., or mailed
to PO Box 7148 Ashevilie, NC 28802.

Shannon Morgan - CZO^


Code Enforcement Official EXHIBIT
THECITYOF
ASHEVILLE
NOHlH r(H|)|ll|A

ZONING VIOLATION
CITATION
Februai-y 29,2024
Case No: 24-0085IS

Owner Name: LEGGETT RICKjLEGGETT LYNN


Owner Address: 5 GREGORIE NCK

OKATIE SC, 29909


Tenant/Business Name:

Tenant/Business Address:

Violation Location: 17 N MARKET ST 301

PIN: 964940487600000

Zoning: CBD,

Dear LEGGETTRICK;LEGGETTLYNN:

You were served with a Notice of Zoning Violation on Febiiiaiy 20, 2024 which described a violation(s) of the Zoning
Requirements of the City of Ashcviile Unified Developmeni Ovdiuance. A copy of that Notice is attached.

You were served with a Notice of Zoning Violation on February 20, 2024 whicli described a violation(s) of the Zoning
Requirements of the City of Asheville Uniifed Developmeni Ordinance. A copy of that Notice is attached.
Upon recent investigation it was noted that your residence was still being advertised as an active short term rejital witli
active bookings. As a result, a civil penalty of five hundred dollars ($500) is now being assessed as authorized in Section
7-18-2(b)(l)(c) of the Unified Development Ordinance (UDO). Each dav that this violation continues will constitute a
seoarate violation. Additional civil penalties will be assessed in the amount of five hundred dollars ($5001 for eacli dav
the violation continues. Non-payment of fines may be pursued by city officials in the Magistrate's Court (Small Claims)
of the NC General Court of Justice.

The citation will remain in effect until the violation is corrected. The violation can be considered corrected only when
you have notiifed the Development Services Deportment and the site is determined to be in compliance by the Code
Enforcement staf.f

This civil penalty may be paid between 8:30AM and 5:00 PM, Monday through Friday, at 161 S Charlotte St., or mailed
ta POBox 7148 Asheville, NC 28802.

'Shannon Mo^Jgan -CZCr


Code Enforcement Official
Photos Amenities Revfevn Location

^ Towns Is a Superhost
SupRihosts arc experienced, highly rated Hosts
$358 $307 night
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100% of recent guests gave the kx;ali<m a S star rating.
2/29/2024

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Stunning condo; contemporary meets turn of tite century design In tills historic new
i^ulldout in dovrntov/n Asheville. This 3rd floor 2BP features 1 king Main and a king guest
DR. Eacit witi) private baths and also a half bath in the common area of tiie home. The
Biltmore Estate/Blue Ridge Parkway are also Just a short drive away. Electric Vehicle You won't be charged yet
Owners: dedicated parking spot in garage includes Nema i<t-&0 outlet. Bring your own...

Cieaning fee

Where you'll sleep Total before taxes

(pv Lower price


Bedroom 1 Bedroom 2 Vour dates arc $101 less than the avg.
nightly role of lite last CO days.
jflh
THECITYOF
ASHEVILLE
NOHIH C^OilllNA

ZONING VIOLATION
CITATION
Jaiiuaiy 31,2024
Case No: 23-07806S

Owner Name: CARISSA ANN BRUNSMAN REVOCABLE TRUST

Owner Address: 202 LAKESHORE DR

MOORESVILLENC, 28117
TenantdSusiness Name:

Tenant/Business Address:

Violation Location: 17 N MARKET ST 103

PIN: 964940487600000

Zoning: CBD,

Dear CARISSA ANN BRUNSMAN REVOCABLE TRUST:

You were served with a Notice of Zoning Violation on November 17,2023 which described a violation(s) of the Zoning
Requirements of the City of Asheville Unified Development Ovdinance. A copy of that Notice is attached.

Upon recent investigation it was noted that your residence was still beuig advertised as an active short term rental with
active bookings. As a result, a civil penalty of five hundred dollars ($500) is now being assessed as authorized in Section
7-18-2(b)(l)(c) of the Unified Development Ordinance (UDO). Each day that this violation continues will constitute a
separate violation. Additional civil penalties will be assessed in the amount of five hundred dollai-s ($5001 for each dav
the violation continues. Non-payment of fines may be pursued by city officials in the Magistrate's Court (Small Claims)
of the NC Genei al Court of Justice.

The citation will remain in effect until the violation is corrected. The violation can be considered coirected only when
you have notified the Development Seivices Department and the site is determined to be in compliance by the Code
Enforcement staf.f

This civil penalty may be paid between 8:30AM and 5:00 PM, Monday through Friday, at 161 S Charlotte St., or mailed
to PO Box 7148 Asheville, NC 28802.

Shannon Morgan - CZO i


Code Enforcement Officiaf

Development Services City of Asheville 828-259-5846.


Department P.O. Box 7148 vtrww.ashevlllenc.gov.
Asheville, NC 28802
THECITYOF
ASHEVILLE
NOHIH TAnMiNik

ZONING VIOLATION
CITATION
March 01, 2024
Case No: 23-07806S

Owner Name: CARISSA ANN BRUNSMAN REVOCABLE TRUST

Owner Address: 202 LAKESHORE DR

MOORESVILLENC. 28117
Tenant/Business Name:

Tenant/Business Address:

Violation Location: 17 N MARKET ST 103

PIN: 964940487600000

Zoning: CBD,

Dear CARISSA ANN BRUNSMAN REVOCABLE TRUST:

You were served with a Notice of Zoning Violation on November i 7, 2023 which described a violation(s) of the Zoning
Requirements of the City of Aslieville Unified Development Ordinance. A copy of that Notice is attached.

Upon recent investigation it was noted tliat your residence was still being advertised as an active short term rental with
active bookings. As a result, a civil penalty of five hundred dollars ($500) is now being assessed as authorized in Section
7-18-2(b)(l )(c) of the Unified Development Ordinance (UDO). Each day that this violation continues will constitute a
separate violation. Additional civil penalties will be assessed in the amount of five hundred dollars ($500) for each day
the violation continues.

Non-payment of fines may be puisued by city officials in the Magistrate's Court (Small Claims) of the NC General
Court of Justice. The citation will remain in effect until the violation is corrected.

The violation can be considered corrected only when you have notified the Development Services Department and the
site is determined to be in compliance by the Code Enforcement staff.

This civil penalty may be paid between 8:30AM and 5:00 PM, Monday through Friday, at 161 S Charlotte St., or mailed
to PO Box 7148^sheville, NC 28802.

Shannon Morgan - CZO^


Code Enforcement Official

City of Asheville 828-259-5846


Development Services
Department P.O. Box 7148 www.ashevlllenc.gov
Asheville, NC 28802
;!1 show ell photos

K' .M iLtar'l

Entire condo In Ashevllle, North Carolina


4 guests • 2 bedrooms ■ 2 beds - 2 baths $304 night
■e-4.84-31 reviews
CHCCKM CHECKOUT

3/10/2024 3/13/2024

Hosted by Towns
Supcdiost ■ 5 yc^t s itosling

^ Towns is 8 Superhost
Supeihosls are experienced, highly rated Hosts. You v«>nT be charged yet

Please Inquire about available booking options! CJesologiefi


Stunning condo with contemporary meets lurnof lite ceiUuiy design In downtown
Asheville. This 1st floor 2 bedroom features 2 king masters, each with private baths, High
quality blackout shades have recently been Installed, adding the finishing touch on this
already perfect condo! The unit also comes with one garage parking space. Total before taxes
Downtown, central to all that Asheville lias to offer. Biltinore Estate, Blue Ridge Paikway...
Show more >
THECITYOF
•i i> !i 1)1 A h III > .■! A

ZONING VIOLATION
CITATION
Jniuiary 30, 2024
Case No: 23-08069S

Owner Name: BELLFIBLD 417 MARKET LLC


Owner Address: 21R0SEBAYLN

ASHEVILLENC, 28803

Tciinuf/Dusiiicss Name:

Tenaut/Btismcss Address:

Violation Location: 17 N MARKET ST 302

PIN: 964940487600000

Zoning; CI3D,

Dear BELLFIELD 417 MARKET LLC:

You were served with a Notice of Zojilng Violation on December 1,2023 which described a viola(ion(s) of li\e Zoning
Requireniciils of the City of Asheville Unified Development Ordinance. A copy of that Notice is attached.

Upon recent investigation it was noted that your residence was still being advertised as an active short term rental with
active bookings. As a result, a civil penalty' of five hundred dollars ($500) is now being assessed as authorized in Section
7-18-2(b)(l)(c) of the Uniifed Development Ordinance (UDO). Each dnv tliat this violation continues wil) constitute a
separate violation. Additional civil ueiiallies will be assessed in the ainount of five hundred doiiars ($5001 fcj' each day
thevioiation continues. Non-payment of fines may be pursued by city officials in tiie Magistrate's Court (Small Claims)
of tiie NC General Court of Justice.

Tlie citation will lemain in effect iiiiti) the violation is corrected. The violation con be considered corrected only when
you have notiifed the Development Services Department and the site is determined to be in compliance by the Code
Enforcement sta.ff

'J'liis civil penalty may be paid behveen 8:30AM and 5:00 PM, Monday tiirougli Friday, at 161 S Charlotte St., or mailed
te.PO Box 7148 Asheville, NC 28802.

SliRinion Morgan - CZO


Code Enforcement Official

828-269-5846
Development Services City of Asheville
P.O. Box 7148 www.asheviltenc.gov
Department A^u^..iii.s oaono
THECITYOF
ASHEVILLE
tfOHlH ,r

ZONING VIOLATION
CITATION
February29, 2024
Case No: 23-08069S
Oiviiei' Name: BELLFIELD 417 MARKET LLC
Owner Address: 21 ROSEBAYLN
ASHEVILLE NC, 28803
Tenant/Business Name:
Tenant/Business Address:

Violation Location: 17 N MARKET ST 302


PIN: 964940487600000

Zoning: CBD,

Dear BELLFIELD 417 MARKET LLC:

You weje served with a Notice of Zoning Violation on December 1,2023 which described a vio!ation(s) of the Zoning
Requirements of the City of Aslteville Uniifed Development Ordinance. A copy of that Notice is attached.

Upon recent investigation it was noted that your residence was still being advertised as an active short term rental with
active bookings. As a result, a civil penalty of five hundred dollars ($500) is now being assessed as authorized in
Section 7-18-2(b)( 1 )(c) of the Uniifed Development Ordinance (UDO). Each dav that this violation continues will
tional ci
fr^r each dav the violation continues. Non-payment of fines may be pursued by city officials in tlie Magistrate's Court
(Small Claims) of the NC General Court of Justice.

The citation will remain in effect until the violation is corrected. The violation can be considered corrected only when
yon have notiifed the Development Seivices Department and the site is determined to be in compliance by the Code
Enforcement staf.f

This civil peiialty may be paid betweeji 8:30AM and 5:00 PM, Monday tluough Friday, at 161 S Charlotte St., or
mailed to PO Box 7148 Asheville, NC 28802.

Shannon Morgan - CZO


Code Enforcement Official

Development City of Asheville


Services P.O. Box 7148
Department Asheville, NC 28802
2/29/24. 2:29 PM 17 N Market St 302 screen shot 1PNG 2-28-24.PNG

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THECITYOF
ASH^LLE
HOtitH .rARn|it|A

ZONING VIOLATION
CITATION
January 30,2024
Case No: 23-07994S

Owner Name: BROWN DUDLEY GEORGE JR


Owner Address: 258 BLANCA ISLES LN

JUPITER FL, 33478


Tenant/Business Name:

Tenant/Business Address:

Violation Location: 17 N MARKET ST 101


PIN: 964940487600000

Zoning: CBD,

Dear BROWN DUDLEY GEORGE JR:

You were served with a Notice of Zoning Violation on December 1,2023 which described a violation(s) of the Zoning
Requirements of the City of Asheville Unified Development Ordinance. A copy of that Notice is attached.

Upon recent investigation it was noted that your residence was still being advertised as an active short term rental witli
active bookings. As a ersult, a civil penalty of five hundred dollars ($500) is now being assessed as authorized in Section
7-18-2(b)(l)(c) of tlie Unified Development Ordinance (UDO). Each dav that tliis violation continues will constitute a
separate violation. Additional civil penalties will be assessed in tlie amount of five hundred dollars ($500^1 for each dav
the violation continues. Non-payment of fines may be pursued by city officials in the Magistrate's Court (Small Claims)
of the NC General Court of Justice. -

The citation will remain in effect until the violation is corrected. Die violation can be considered corrected only when
you have notified the Development Services Department and the site is determined to be in compliance by the Code
Enforcement staf.f

This civil penalty may be paid between 8:30AM and 5:00 PM, Monday tlirough Friday, at 161 S Charlotte St., or mailed
rto-PO Box 7148 Asheville, NC 28802.

rannon Morgan - C:
Code Enforcement Official

Development Services City of Asheville 828-259-5846.


Department P.O. Box 7148 www.ashevlllenc.gov.
Asheville. NC 28802
THECITYOF
ASHEVILLE
K 0 H I H 'J A H III < 'M

ZONING VIOLATION
CITATION
Februai-y 29,2024
Case No: 23-07994S
Owner Name: BROWN DUDLEY GEORGE JR

Owner Address: 258 BLANCA ISLES LN

JUPITER FL, 33478


Tenaiit/Bushiess Name:

Tenant/Business Address:

Violation Location: 17 N MARKET ST 101


PIN: 964940487600000

Zoning: CBD,

Dear BROWN DUDLEY GEORGE JR:

You were seiwed with a Notice of Zoning Violation on December 1, 2023 which described a violation(s) of the Zoning
Requirements of the City of Asheville Unified Development Ordinance. A copy of tliat Notice is attached.

Upon recent investigation it was noted that your residence was still being advertised as an active short term rental with
active bookings. As a result, a civil penally of five hundred dollars ($500) is now being assessed as authorized in Scctioi
7-I8-2(b)(I)(c) of the Uniifed Development Ordinance (UDO). Each dav that this violation continues will constitute a
seoarate violation. Additional civil penalties will be assessed in the amount of five hundred dollars ($500^ for each dav
the violation continues. Non-payment of fines may be pursued by city officials in the Magistrate's Court (Small Claims)
of the NC General Court of Justice.

The citation will remain in effect until the violation is corrected. The violation can be considered corrected only when
yon have notiifed the Development Services Department and the site is determined to be in compliance by the Code
Enforcement staf.f

This civil penalty may be paid between 8:30AM and 5:00 PM, Monday through Friday, at 161 S Charlotte St., or mailed
to PO Box 7148 Asheville, NC 28802.

Shannon Morgan - CZO

City of Asheville 828-259-5846


Development
Services Department P.O. Box 7148 www.ashevillenc.gov
Asheville, NC 28802
2/29/24, 2:46 PM 17 N Market St iOi screen shot 1.PNG 2-27-24.PNG

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THECITYOF
ASHEVILLE
NOHIH c^noiwu

ZONING VIOLATION
CONTACT LETTER

Febaiary 28,2024

Case No: 23-07803S

Owner Name: KRUEGER BRETT;PESTA CAROL EMILY WILSON

Owner Address: 1706 DOVE COTTAGE DR

CHARLOTTE NC, 28226

Violation Location: 17 N MARICET ST 201

PIN: 964940487600000

Zoning: CBD,

Dear: KRUEGER BRETT;PESTA CAROL EMILY WILSON

A Notice of Violation was issued on December 1, 2023 for operating a Short Term Rental without a proper
permit. Subsequently, a Citation was issued on February 2, 2023 by the City of Ashevllle for the same
violation. The citation carries a fine of $500 a day, until resolved. The current fines (as of mailing today) are
$13,500.00 (Thirteen thousand five hundred dollars). At this point, the City of Ashevllle is considering filing a
claim with the Magistrate's Court (Small Claims) in order to recoup these fines. Please reach out to the Zoning
Enforcement Official listed below in order to discuss how to come into compliance before this action is taken.
Non-payment of fines WILL be pursued by city officials In the Magistrate's Court (Small Claims) of the NC
General Court of Justice.

Please contact Shannon Morgan, the Zoning Enforcement Official handling this case, within five (5) business
days of the post mark on this letter at 828-259-5829 / email smorgan@ashevillenc.gov to discuss a plan to
revive the sitdStlojn. Ypur cooperation is greatly appreciated.

EXHIBIT
sn^iion Morgwi
Code Enforcement

City of Ashevllle 828-259-5846


Development
Services Department P.O.Box 7148 www.ashevillenc.gov
Ashevllle, NC 28802
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city of Ashevllle
Planning and Urban Design Department
THECITYOF P.O. Box 7148
Asheville. NC 28802

ASHEVILLE (828)-259-5450
www.asheviDenc.gov

CITY OF ASHEVILLE
LEVEL 1 REVIEW COMMENT LETTER

January 26,2024

VIA EMAIL: Brett

Level I Site Plan Review


Project # 24-00182PZ

Dear Brett:

The City of Asheville has completed the initial review of the application for 17 N
Market St Comments are listed following the city department/division or outside
agency and the staff person responsible for the comment. The phone number and
email address of the staff person who should be contacted with questions regarding
the comment(s) is also listed.

Planning and Urban Design Department - Planning and Zoning Reviews


Contact: Jennifer Blevins 259-5442 or jblevins@ashevillenc.gov
The application received on 1/9/24 is incomplete. The documentation listed below
must be submitted before we can review the requested change of use of individual
units to a small hotel for short term vacation rentals.

• Provide a completed public benefits table. A blank table is attached.


• Provide owner's affidavit(s) signed by the owner(s) of each dwelling unit
located in the building. The affidavit should indicate the parcel
identification number(s) and unit number(s) associated with each
signature. A blank owner's affidavit form is attached. Please print
additional copies as needed.
• Provide an owner's affidavit signed by an authorized representative of the
Homeowners Association.

ACTION: REVISE &RESUBMIT

Fire Department
Contact: Brian Ronie 251-4012 or bronie@ashevillenc.gov
Comments will be provided after a complete application is received.
ACTION: None at this time

Transportation Department
Site Design, Traffic related issues:
Contact: Chris Cairns 232-4586 or ccaims@ashevillenc.gov

EXHIBIT
Comments will be provided after a complete application is received.
ACnON: None at this time

Development Services Department - Stormwater Services Division


Flood/Stormwater/Erosion Control Reviews:
Contact Uurel Cross 271-6131 or LCross@ashevillenc.gov
Comments will be provided after a complete application is received.
ACnON: None at this time

Public Works
Contact Rick Gath 777-4053
Comments will be provided after a complete application is received.
ACTION: None at this time

Water Resources Department


Contact: Chad Pierce 259-5420 or cpierce@ashevillenc.gov
• No comments for proposed use change
ACTION: No Recommendation

Development Services Department - Building Safety


Contact: Lindsey Huff 259-5996 or lhuff@asl^villenc.gov
Comments will be provided after a complete application is received.
ACTION: None at this time

Planning and Urban Design Department - Addressing


Contact Stuart Rohrbaugh 251-4004 or srohrbaugh@ashevillenc.gov
• The existing 17 N MARKET ST parcel PIN # 9649404876 appears to be mapped
as 14 different condo units with another PIN # being assigned for the
common element parcel. Materials provided in this application are unclear
which condo units are being proposed for a hotel use.
• Provide floor plans to show each unit being proposed for a hotel use. The
floor plans should display the unit address assignment. Address assignment
services were first provided during the Level II17-09941PZ plan review
process for 15 units. The original building plans submitted with Building
Permit 18-04060 appears to have followed the approved 15 unit number
address assignment scheme. It appears at some point in time the plans may
have been amended to construct 14 units. It appears an attorney may have
used a different set of plans to drawn up condominium declaration
documents. The declaration had made up non-existent unit numbers. After
the building was occupied, my offlce was contacted by one of the new owner
/ property managers asking if all the previously approved condo unit
numbers could be changed to accommodate the wrong made up condo unit
numbers being referenced in the declaration. 1 advised at the itme that the
condo declaration should be re-recorded with the correct unit numbers. No
response since that itme. It remains unclear what each new unit owner may
be using for a unit address.
ACTION: REVISE & RESUBMIT
Once the comments indicated above have been addressed, the revised plans along
with a point bypoint response /etfer should be submitted via the development
portal at the following link: httDs.7/develoD.ashevillenc.aov/

Thank you for developing in the City of Asheville. If I can be of any further
assistance, please do not hesitate to contact me.

Sincerely,

Jennifer Blevins
Urban Planner

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