ARTICLE IV

HOMEOWNERS ASSOCIATION RIGHTS AND RESPONSIBILITIES

1. There shall be a homeowners association for the Subdivision (the "Association") which shall be comprised of Owners of one or more Lots in the Subdivision. The Association shall be organized as a nonprofit corporation for a perpetual term under the laws of the State of Michigan. The Association may also govern property adjacent to the Subdivision and the property owners thereof (including land contract purchasers) at such time as such property is platted and impressed with similar deed restrictions. The Association shall be established when all of the Lots in the Subdivision have occupied Dwellings on them or at such other time as Declarant may elect. All voting in Association affairs shall be on a one vote per Lot basis. in order to pay the cost of carrying out its responsibilities hereunder, the Association may levy fees, dues or assessments on each Lot in the Subdivision and each Lot in property adjacent to the Subdivision which is governed by the Association, whether or not the Owner is an active Member of the Association, except Lots owned by Declarant or by a builder prior to occupancy. In no event shall Declarant or such builder be obligated to pay fees, dues or assessments to the Association. All such fees, dues or assessments shall be charged equally to each Lot governed by the Association and may be enforced through the lien provided for in Paragraph 2 of this Article or by any other lawful means of collecting debts. No fees, dues or assessments on any Lot governed by the Association, except for assessments under Article II, Paragraph 17 above, shall exceed in total Three Hundred Dollars ($300.00) per calendar year unless the amount in excess is voted upon and approved by at least the Association Members representing two-thirds (2/3) of the Lots governed by the Association which have been sold to and occupied by residential homeowners and provided such amount in excess has also received Declarant's approval in writing; except that assessments up to One Hundred Dollars ($100.00) per Lot per calendar year in addition to all of the fees, dues and assessments provided for herein may be charged to the owner of each Lot governed by the Association, including Lots owned by Declarant or a builder prior to occupancy, for snow removal from streets by the Association, provided such amount for snow removal has also received Declarant's approval in writing.

2. Any fees, dues or assessments established by the Association, and any amounts or expenses incurred in enforcing these restrictions which are reimbursable under Article V below, shall constitute a lien on the Lot of each Owner responsible for such fees or expenses. Declarant or the Association, as the case may be, shall be entitled to collect all reasonable expenses of collection, including actual attorney fees and costs and may enforce the lien by recording appropriate instruments confirming the existence of the lien and foreclosing the lien by appropriate legal action. In such legal action, a court of competent jurisdiction shall be empowered to order a sale of the Lot subject to the lien in order to satisfy the lien. The lien shall be subordinate and junior to the lien of any first mortgage securing a loan for the acquisition or improvement of any Lot in the Subdivision. Notwithstanding anything to the contrary contained herein, the sale or transfer of any Lot shall not affect the lien arising out of the failure to pay any fees, dues or assessments when due. All fees, dues or assessments which shall remain due and unpaid sixty (60) days after the date said charges become due and unpaid shall be subject to interest at the highest legal rate allowable as of the date said charges become due.

3. Any sale or purchase of a Lot in the Subdivision shall be subject to such bylaws for the Association as Declarant may hereafter establish, and each Owner agrees to abide by and observe such bylaws. Declarant shall have the right to modify, amend or supplement the bylaws, and so long as they are reasonable, any such modifications, amendments or supplements shall have retroactive effect to the date immediately preceding the date of this Declaration, until Declarant shall turn over the Association to the Owners. Once Declarant has turned over the Association to the Owners, it may amend or modify the bylaws upon the affirmative vote of seventy-five percent (75%) of the Owners, but such amendment or modification shall not have retroactive effect.

4. The Association shall use the fees, dues or assessments collected for such purposes as the Association shall determine as necessary and advisable, including, but not limited to: Improving and maintaining the Common Areas and Landscaped Areas and other property of the Association, including any park areas designated on the plat or acquired by the Association; maintaining and improving entryways of the Subdivision; planting and maintaining trees and shrubbery; controlling undesirable insects and animals within the Common Areas; collecting and disposing of garbage, ashes and rubbish; snow removal; employing night watchmen; caring for vacant property; removing grass or weeds; establishing and operating any community programs and facilities which in the opinion of the Association benefit the general welfare of the members; payment of real estate taxes, special assessments and other charges upon the Common Areas or Landscaped Areas imposed or levied by any appropriate governmental authority; payment of insurance expenses with regard to the Common Areas, Landscaped Areas and the Association; payment of expenses incident to the examination of building plans and specifications and the enforcement of these restrictions or any other building restrictions applicable to the Subdivision or for any other purposes for which the Association is incorporated