Azul Covenants, Codes & Restrictions

AZUL COVENANTS, CODES & RESTRICTIONS

OVERALL GUIDELINES OF THE AZUL COMMUNITY

We will preserve the existing natural environment, the flora, the fauna, the soil, the air, the natural sounds and physical geology.

As homes evolve they will be complementary to the land and be designed with respect for the elements of the landscape. Materials used for building should be natural and fit into the land and environment, not stand apart from it. Azul is not a place for grand architectural statements but rather designs that create a sense of community. Colours should blend with the environment.

These guidelines are designed to protect and preserve the natural character of this special and appealing place while ultimately allowing homes and buildings that will enhance the natural beauty of Azul.

Where possible we encourage the utilization of non-fossil fuel energy (solar, wind), the collection of rainwater and the usage of grey water for planting purposes. Compost is encouraged. Any electrically powered devices must have all lines buried safely underground.

Appearing in this agreement, Ms. Jannene Harker, hereby known as the developer and ______, hereby known as the proprietor, declare that:The proprietor is the owner of Lot #______in the project AZUL duly registered with the Property Registry Office in El Viejo under Number_____ Inscription _____, Pages ______, Volume__1st_, in the Real Rights Section Estate, with the Catastral # ______.

FORMATION OF THE AZUL OWNERS ASSOCIATION (AOA)

1. At which time Azul hasconstruction (completed or commenced) on 50% of all lots, it will become the developer’s responsibility to elect an Azul Owner Association (AOA) board, comprised of no less than 3lotowners, which will assume all of the above and below mentioned capacities.
2. The board will also be responsible for writing the by-laws for the azul community.
3. Thereafter the AOA board will be elected by individual landowners and the developer each year.
4. Additions or subtractions to this CC&R can be made by 66% agreement through the voting procedure of AOA.
5. In electing a board each proprietor of a lot has one vote, even in circumstances where there are joint owners of a lot. In the situation where an azul resident has purchased more than one lot, then that person will only have one vote regarding the election of board members.
6. The developer will retain voting rights on the election of the board whilst still owning unsold lots at Azul.
7. The developer does not pay AOA fees for the remaining unsold lots.

CONSTRUCTION OF DWELLINGS

1. It is recognised that Lot 14 has the potential to be utilised as a commercial lot. Therefore Lot 14 has an exception to all of the below mentioned guidelines in respect to the construction of multiple dwellings and is subject to the approval of the developer or AOA.
2. The proprietor has acquired the property with the intent of building a single family residence. Before starting construction, a preliminary drawing of the single family home must be submitted for the approval of the developer or AOA. These preliminary drawings must include a site plan, an architectural floor plan, a rain water run-off plan, elevations and facades. Any changes to the preliminary drawings must be submitted to the developer or AOA for approval.
3. All lots are restricted to private one-family dwellings, and only one house shall be built on any lot. Houses may be developed in a “pod” format but only as a single-family design.
4. Each lot has a designated height restriction and an application must be made to the developer or AOA to differentiate these restrictions. Consideration of height limit is based on the impact to the community and neighbours with the goal of minimising restrictions of the eastern and western view.No towers or structures higher than the height limit for that specific lot are permissible, whether for wind power, solar power, telephonic or Internet service, without the developer or AOA permission.
5. The proprietor must commence construction on their lots within three years from the closing date of the purchase of their lots. If, at the end of three years, construction plans have not been completed and a contractor has not been hired to build the house, the developer will have the option to buy back the lot at the original price. If design and/or construction plans have begun, the house must begin actual onsite construction within 3 months of the three-year time limit or the buy-back may commence at that time. The developer will have six months after the three-year time limit expires to exercise the buy-back option for the lot. If that option is not exercised within that time, then the buy-back option will expire and the developer will not have the right to enforce the three-year building requirement.
6. If the proprietor has specific and firm plans to build, but has occurred unforeseen delays, he/she should contact the developer or AOA and may be granted an extension, if the delay is valid as deemed by the developer or AOA. This goal of this limitation is not punitive but ensures that several years from now, Azul will be a community with life as opposed to a development of empty lots.
7. If the original proprietor sells her/his lot in less than the 3 year time limit, the new owner shall have two years from the date the lot is purchased by the new owner to begin construction. If the lot is subsequently sold again, the new owner shall have a one year period in which to begin construction.
8. No commercial use of lots is permitted without prior approval of the developer or AOA. Lots 1 to 7 lend themselves to partial commercial use due to the road frontage access and proximity to the restaurant on lot 1. Buyers with the intention to setting up small businesses on these lots must seek approval from the developer or AOA at the time of purchasing the lot. Owners with the intention of having businesses on lots 1 to 7 and lot 14 must present a business plan to the developer or AOA. Changes to this plan will need approval from the developer or AOA. Further, correct permits and approvals through the Alcadia and other government departments must be obtained to legally open businesses in azul. These permits must be in place before the commencement of the business.
9. Additional living units as either guest house, bodegas or a caretaker’s residence are allowable. They too must conform to the same architectural styles as outlined above.
10. All grading must be done with minimal impact to the lot and area adjacent to the property and with approved engineering plans designed to prevent excess runoff and erosion. Grading material must be stored with extreme caution and utilized so it does not flow into creek areas, ravines, onto neighbouring lots, roads or public area.
11. A setback space of 3 meters (9.1 feet) from any property line shall be enforced on all lots. No permanent building shall be constructed in this area at any time. Fencing and or walls may be allowed in this space, but must remain 1m back from any property lines and must be lower than 1.8m in height. Chain link fences are prohibited and homeowners are encouraged to design fencing that blends with the environment, such as “Live” fencing. Home owners will be encouraged to add and blend with the green areas already established in azul. Razor wire, glass or other similar materials may not be placed on top of the walls. These provisions pertain to green areas as well. The setback space may be eliminated or reduced if the proprietor obtains the consent of the adjacent owners. This authorization must be submitted in writing to the developer or AOA.
12. The actual house footprint (includes all exterior house walls, but not exterior patio space) may not exceed 35% of the lot’s buildable area. Example: if a lot was 45m x 45m square and had 10m setbacks on all sides, its buildable area would be 35m x 35m on all sides. The house footprint could not exceed 35% of this area or 428.75 square metres in total (35x35=total building area x 35% = 428.75). Naturally, in lots permitting two stories, a larger house could be built, while maintaining these regulations. Residences must have a minimum interior area of 75 m2 (800 square feet).
13. Where solar power or wind power is utilized, it must be safe, installed professionally and not create a visual or sound blight to neighbours. As more options become available, the developer or AOA will inform all owners of the recommended systems and costs and assist in a group purchase if desired.
14. Each parcel will be required to carry its own septic system with bio- filtration system allowing grey water to be utilized for irrigation. Septic systems must also be approved by the developer or AOA before and during construction.
15. Swimming pools/spas are acceptable. Solar heating systems are encouraged. Cleaning and filtration systems must minimize any potential harm to the environment.
16. During construction of any house, all building materials and workers areas must be within the area of the owner’s lot and not in the roads or common areas. Please seek clarification of a ‘workers area’before the builder constructs this temporary dwelling. Portable bathrooms or hand dug toiletsmust be used by workers. Litter caused by construction is the responsibility of the owner and the builder. Messy construction sites will be warned once and then fined by the developer or AOA when deemed necessary.
17. Approved constructions must be completed within 12 months of initiation, and any delay will have to be approved by the developer or AOA. Additional living units (guest house, casita, bodegas or a caretaker’s residence) must be completed within the time frames outlined in the builders contract or a time framed agreed upon by the developer and proprietor.
18. The proprietor will construct or purchase a water tank or system for the collection of rain water with a capacity of at least 1320 gallons (5000 litres). The design and placement must blend or be obscured by trees or natural fencing and be approved by the developer.
19. The proprietor will regularly clear the debris and refuse generated by the construction or organise the builder to do so.
20. The connections from the electric energy source or any other needed service to the building sites on each lot, being these temporary or permanent, must be installed underground from the service boxes. The cost will be assumed by the proprietor.
21. The proprietor will allow regular, unscheduled inspections of building site by the developer or AOA and its engineers.

COMMERICAL AND BUSINESSES WITHIN AZUL

1. Owners with the intention of having businesses on lots 1 to 7 and lot 14 must present a business plan for approval to the developer or AOA on the purchase of the land and each year thereafter. Changes to this plan will need approval from the developer or AOA.
2. Correct permits and approvals through the Alcadia and other government departments must be obtained to legally open businesses in Azul. Permits must obtained before the opening of the business.
3. Signage for the business must be approved by the developer or AOA.

WATER,ELECTRICITY AND OTHER UTLITIES

1. With the approval of the preliminary drawings and the fulfilment of the other conditions herein established, the developer will provide to the proprietor with a water connection and water meter. The proprietor will be charged for thewater meter at the close of the purchase of the land.
2. The proprietor will be responsible for paying the developer or AOA their monthly portion of the electricity used to pump the water from the wells and rainwater collection tanks to their personal rainwater collection tanks and homes/businesses.
3. The proprietor will also be responsible for paying an electricity connection right, for which the proprietor will do all the diligences with Disnorte and will pay all lot meters and monthly electricity bills. The developer has install all transformers, and the required conduit and tubing underground. The proprietor is responsible for installing electric cablingfrom their lot box to their house.
4. Regarding water services, the developer or AOA will charge the consumption at the maximum of the official national rate. All connection costs are on the account of the proprietor (water meter, internal system, etc). The cost of Electricity used to provide water to each house will be charged on a monthly bases and is included in the overall consumption rate.
5. Each proprietor of a lot hereby grants to the electric utility company, telephone company, and the developer and its affiliates, and their respective successors and assigns, a perpetual utility easement (“Utility Easement”) over, upon and under all portions of the lots within one (1) meter of a Common Easement for the installation, operation, maintenance, repair, replacement, alteration and expansion of utilities. “Utilities” shall include, without limitation, telephone, electricity, drainage and water systems.

ANNUAL MAINTENANCE FEE (AMF)

1. Thereis an Annual Maintenance Fee (AMF) for the services provided of U$600 per year for the first 2 years of purchase (including prorated year) and will be subject to an increase after that period. The developer or AOA may revise, redefine or change the AMF. The payment of the services will be due and payable in U.S. dollars. The AMF must be paid annually on or before 1st of January of each year for that year. Late payments will incur a penalty of 2% per week. If international banking transfer feesor any bank fees are involved in making this payment they are at the expense of the proprietor.
2. The initial AMF is due at the finalisation of purchase of the lot and will be prorated to the months remaining for the year. Payment of this fee is a demonstration of the acceptance and agreement of the CC&R’s of Azul.
3. The following services will be covered by the AMF:

•Road maintenance –signage and general repairs.

•Drainage systems – Cleaning gutters, pipes, ravines and natural canals to ensure proper drainage of roads.

•Green areas – Common area landscaping, watering, landscape maintenance and cleaning.

•Security 7 nights on common grounds – maintenance and manning of the front security gate and security casa, including painting, salary, utilities, and administrative cost, and salary for roving security on foot.

•Gardeners for the common areas.

•Maintenance of shared structures such as the yoga platform, underground electricity from the meters to houses and shared areas, wells, pumps and rain water catchment structures

•Yearly municipal tax for common areas (in 2016 this was $115.00 for the year)

1. The failure to pay an AMF or the non-fulfilment of whichever of the obligations enumerated, will give the developer the right to suspend the services detailed herein, including water access, security, etc. Arrears in the payments will incur a weekly interest of 2%.
2. In addition, there will be a one-time “Common Ground” fee of $150.00 per property for the support of the local community. This will support projects that enhance the quality of life for the greater Santa Maria community. Examples include but are not limited to, contributions to a local micro-investment fund (lends to local small businesses), money to support local schools, preservation of local turtle sanctuaries and support to problematic local domestic animals. Commission will not be paid on this fee and the fee will be paid separate and apart from the sales price of the lot.

ECOLOGICAL AND COMMUNITY CONSIDERATIONS

1. All natural greenery, especially trees, is vital to the natural beauty of Azul. Accordingly, no trees that have a circumference larger than 16cm (at 1m above the ground) shall be removed without the prior written consent of the developer or AOA. Trees planted for landscaping purposes may not be allowed to grow above a height that may block views. They must be kept trimmed if they encroach on views or the developer or AOA will trim them, if necessary, at owner’s expense.
2. All rubbish shall be stored in suitable containers out of public view. All personal property will be stored within appropriate buildings. Each lot owner will be encouraged to place recyclable wasteat the recycle centre at the appointed position within the development.
3. Clothes lines and the hanging of clothes should be in a position where it is not viewed from the road.
4. Dogs, cats, birds, or other pets may be kept on the premises, but only insofar as they are not a threat, danger, nuisance or noise problem to others in the community. This is a delicate balance between neighbours, domesticated pets and wild animals and involves health and waste issues as well. Our goal is to make this balance work because pets are family. If there are problems the developer or AOA will make necessary decisions to resolve any issue. Excessive barking, or growling menacingly are considered an indication of potential problems regarding the safety of people and other animals within azul. All residents are asked to work to prevent these issues. In cases of complaints or if any incident occurs the developer or AOA’s decision is final.
5. We encourage all owners to establish organic composting systems and mulching to fertilize their garden and or personal green areas. Chemical pesticides and/or fertilizers for plant material are prohibited.
6. Exterior lighting should be minimal. Security lights must be kept to no more than 60 watts of power so as not to interfere with neighbours. Landscape lighting will be limited to low voltage.
7. Excessive noise pollution is not permitted.
8. Temporary or removable structures may not be installed, except during construction.
9. Mobile homes and tents may not be installed.
10. Commercial signs or any other type of advertising may not be installed within the Azul grounds. Commercial lots have an exception to this however signage must be approved by the developer or AOA.
11. No firearms in common areas. No shooting or firearm practice in any area. No hunting of any kind on any part of the Azul property.
12. No vehicles of any kind, including boats and trailers, may be left parked on the access roads or green areas of the development.
13. The lawns must be cut or mowed and other exterior areas must be neatly maintained and free of any type of garbage or other debris. In cases where lots are not being maintained the developer or AOA may perform all work necessary for the maintenance of the external appearance at the cost of the proprietor.
14. The proprietor will maintain free and clear accesses to the property.

YOGA PLATFORM, SWIMMING POOL AND RESTAURANT