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STATE OF GEORGIA
COUNTY OF DEKALB		 Reference: Deed Book 605B
Page 27

DECLARATIONS OF COVENANTS, CONDITIONS AND RESTRICTIONS

ARTICLE I Definitions

Section 1. "Association" shall mean and refer to DRESDEN SQUARE HOMEOWNERS ASSOCIATION, INC., a Georgia non-profit corporation, its successors and assigns.

Section 2. "Owner" shall mean and refer to the record owner, whether one or more persons or entities, of a fee simple title to any Lot which is part of the Properties, but excluding those having such interest merely as a security for the performance of an obligation.

Section 3. "Property" and "Properties" shall mean and refer to that certain real property described in Exhibit "A" and such additions thereto as may hereafter be brought within the jurisdiction of the Association.

Section 4. "Townhome Lots" or "Lot" shall mean those lots on which Townhomes are or shall be erected, excluding the Townhome as defined herein.

Section 5. "Townhome" or "Townhomes" shall mean the physical structure or living unit actually built on the Townhome lot.

ARTICLE II Property Rights

Section 1. Owner's Easement of Ingress and Egress. Each owner shall have an easement of Ingress and Egress upon and across any portion of the Townhome Lot, which may be necessary to enable said owner to enter and/or exit his Townhome either through the front or rear entrance. The easement shall apply to all Owners, their transferees, assigns, families, tenants, guests, licensees, agents and invitees. This easement shall be appurtenant and shall pass with title to every Lot, whether or not included in any deed.

Section 2. Easement for Maintenance. The Association shall have a general easement for maintaining the Property in accordance with the provisions of Article VI hereof.

Section 3. Easement Reserved by Association. Easements over the Properties for the installation and maintenance of electric, telephone, cable television, water, gas, drainage and sanitary sewer lines and facilities and the like are hereby reserved by the Association together with the right to grant and transfer the same during such time that the Association is the Owner of any portion of the property. Association also reserves the right to enter into any Townhome Lot for the purpose of completing the improvements thereon, and for the further purpose of carrying out any obligations which it may have, or assume, with respect to the curing of any defects in workmanship or materials in the Properties or the improvements thereon.

ARTICLE III Membership and Voting Rights

Section 1. Members. Every owner of a Lot shall be a member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment.

Section 2. Voting Rights. Each Lot shall be entitled to one vote.

Section 3. Suspension of Membership. The Board may suspend the voting rights of any Member who is delinquent in the payment of any assessment levied by the Association.

ARTICLE IV Covenant for Maintenance Assessments

Section 1. Creation of Lien and Personal Obligation of Assessments. The Declarant for each Lot owned within the Properties, hereby covenants, and each Owner of any Lot by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant and agrees to pay to the Association: (1) annual assessments or charges: and (2) special assessments to be established and collected as hereinafter provided; and (3) any amounts due the Association pursuant to Article VII hereof. If a delinquency occurs in the payment of annual and/or special assessments, the Association may have the rights and remedies against the Owner which is permissible under Georgia law at the time of said delinquency. Each such assessment, together with interest costs and reasonable attorney's fees, shall also be the personal obligation of the person who was the Owner of such property at the time when the assessment fell due. The personal obligation for delinquent assessments shall not pass to his successors in title, unless expressly assumed by them by written agreement. Such annual or special assessments against the Owner shall constitute a lien in favor of the Association of the Townhome or Townhomes against which such assessment is levied and shall include, and shall not be limited to, (a) a late or delinquency charge, (b) interest on each assessment or installment thereof, in any delinquency or late charges appertaining thereto, from the date the same was first due and payable, (c) the cost of collection, including court cost, and reasonable attorney's fees actually incurred.

Section 2. Purpose of Assessments. The assessments levied by the Association shall be used exclusively to promote the health, safety and welfare of the residents of the Properties and for the improvement and maintenance of the Townhome and/or Lot and Private Drive. Furthermore, the Association shall maintain an insurance policy consistent with the provisions of Article VI of the Bylaws of the Association.

Section 3. Computation of Operating Budget and Assessment. It shall be the duty of the Board at least thirty (30) days prior to the beginning of the Association's fiscal year to prepare a budget covering the estimated costs of operating the Property during the coming year. The Board shall cause the budget and notice of assessments to be levied against each Lot for the following year to be delivered to each Owner at least thirty (30) days prior to the Association's annual meeting. The budget and the assessment shall become effective unless disapproved at a duly called and constituted annual meeting of the Association by a vote of a majority of the total Association membership; provided, however, if a quorum is not obtained at the annual meeting, the budget shall become effective even though a vote to disapprove the budget could not be called at this meeting. Notwithstanding the foregoing, however, in the event that the membership disapproves the proposed budget or the Board fails for any reason to determine the budget for the succeeding year, then and until such time as a budget shall have determined as provided herein, the budget in effect for the current year shall continue for the succeeding year, and the Board may propose a new budget at any time during the year by causing the proposed budget and assessment to be delivered to the members at least thirty (30) days prior to the proposed effective date thereof. Unless a special meeting is requested by the owners, as provided in the Bylaws for special meetings, the new budget and assessment shall take effect without a meeting of the owners.

The budget shall reflect all amounts to be received from assessments, from all easement agreements and shared cost agreements with other entities or persons, and from all other sources.

Section 4. Special Assessments. If the assessment proves inadequate for any year, the Board may at any time levy a special assessment against all Owners, notice of which shall be sent to all Owners; provided, however, prior to becoming effective, any special assessment levied against any Lot in one calendar year to exceed three hundred dollars ($300.00) first shall be approved by the affirmative vote of at least two-thirds (2/3) of Owners present or represented by proxy at a special meeting of the members, notice of which shall specify that purpose.

Section 5. Notice of Quorum for any Action Authorized Under Section 3. Written notice of any meeting called, in accordance with the Bylaws of the Association, for the purpose of taking any action authorized under Section 3 or Section 4 shall be sent to all members not less than 10 days nor more than 60 days in advance of the meeting. At the first such meeting called, the initial presence of members or of proxies entitled to cast 50% of all votes shall constitute a quorum. If the required quorum is not present at the commencement of the meeting, another meeting may be called subject to the same notice requirement and the required quorum at the subsequent meeting by 1/2 of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than 30 days following the preceding meeting. The members present at a duly organized meeting can continue to do business until adjournment, notwithstanding the withdrawal of the holders of enough shares to leave less than a quorum.

Section 6. Uniform Rate of Assessment. Both annual and special assessments must be fixed at a uniform rate and may be collected on a monthly, quarterly or annual basis; provided, however, the amount of the assessment in any one year and from year to year may vary.

Section 7. Date of Commencement of Annual Assessments: Due Dates. The annual assessments provided for herein shall commence as to all members on the first day of the month following the conveyance of the Lot to his owner. The first assessment shall be adjusted according to the number of months remaining in the calendar year. The Board of Directors shall fix the amount of the annual assessment against each member at least 30 days in advance of each annual assessment period. Written notice of the annual assessment period. Written notice of the annual assessment shall be sent to every Owner subject thereto. The due dates shall be established by the Board of Directors. The Association shall, upon demand and for any reasonable charge, furnish a certificate signed by an officer of the Association setting forth that the assessments on a specified Lot have been paid and any such properly executed certificate shall be binding upon the Association.

Section 8. Effect of Nonpayment of Assessments: Remedies of Association. Any assessment not paid within 30 days after due date shall bear interest from the due date at the rate of 10% per annum. The Association may bring an action at law against the Owner personally obligated to pay the same; or the Association may seek any other remedy allowable under Georgia Law. No Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of Lot or abandonment of his Lot and/or Townhome.

Section 9. Subordination of the Lien to Mortgage. The lien of the assessments provided for herein shall be subordinate to the lien of any first mortgage. Sale and transfer of any Lot shall not affect the assessment lien. However, the sale and transfer of any Lot pursuant to mortgage foreclosure or any proceeding in lieu thereof, shall extinguish the lien of such assessments as to payments which become due prior to such sale or transfer. No sale or transfer shall relieve such Lot from liability for any assessments thereafter becoming due or from the lien thereof.

ARTICLE V Architectural Control

No building, patio, fence, wall, landscaping or other structure shall be commenced, erected or maintained upon the Properties nor shall any exterior addition to or change or alteration therein be made until the plans and specification showing the nature, kind, shape, height, materials, and location of the same shall have been submitted to and approved in writing as to harmony of external design and location in relation to surrounding structures and topography by the Architectural Control Committee composed of three members of the Board. In the event said committee fails to approve or disapprove such design and location within 90 days after receipt of said plans and specifications, approval will not be required and this Article will be deemed to have been fully complied with. Nothing in this Article shall be construed to permit any review of architectural and/or building decision made by the Declarant with respect to any Lot before its initial sale.

Review and approval of any application pursuant to this Article is made on the basis of aesthetic considerations only, and neither the Architectural Control Committee nor the Board of Directors shall bear any responsibility for ensuring the structural integrity or soundness or approved construction on or modifications to any Lot.

Each Owner acknowledges that the members of the Architectural Control Committee and/or the Board of Directors will change from time to time and that interpretation, application and enforcement of the architectural standards may vary accordingly. The approval of the Architectural Control Committee or Board of Directors of any proposals, plans and specifications or drawings for any work done or proposed, or in connection with any other matter requiring the approval and consent of the Board of Directors shall not be deemed to constitute a waiver of any right to withhold approval or consent as the any similar proposals, plans and specifications, drawings or matters whatever subsequently or additionally submitted for approval or consent.

ARTICLE VI Maintenance

Section 1. Association. The Association shall be responsible for the care and maintenance of property, including right-of-ways dedicated to an appropriate governmental or quasi-governmental group or utility company where such group or company has not agreed to care for and maintain said property, and the entry ways to the Property. The property for which the Association shall be responsible shall include the lawns, grassy areas and grounds located on the Townhome Lot.

The scope of the landscaping maintenance to be provided by the Association shall be defined in landscaping contracts as entered into on behalf of the Association from time to time by the Board of Directors. Each Owner hereby expressly grants unto the Association an easement upon his Townhome Lot for the purpose of caring for, maintaining, etc., the grassy areas therein.

Section 2. Owners. Except as otherwise provided herein, the Owner of each Lot shall be responsible for the care, maintenance and repair of his Townhome and all improvements situated therein. In addition , the Owner shall be responsible for the care, repair, replacement, and maintenance of his air-conditioning condenser even though it is located on the Townhome Lot. Furthermore, the Owner shall be responsible for the care, repair, replacement, and maintenance of all exterior portions of his Townhome, including, but not limited to the doors, roof, windows, and siding.

In the event that any Owner shall fail to maintain the improvements situate hereon in a manner satisfactory to the Board, or shall negligently cause damage to any portion of the Property which, pursuant to Section 1 of this Article, is Association after approval by 2/3's vote of the Board of Directors, shall have the right, through its agents and employees to enter upon said Lot and to repair, maintain and/or restore the Lot, the premises and any improvements erected thereon. Such right of entry and repair is exercisable only upon 15 days written notice given to the Owner thereof, unless in the discretion of the Board, a genuine emergency necessitates a shorter period of time. The costs of any such repairs, maintenance and/or restoration shall be added to and become part of the assessment to which such Lot and Lot Owner is subject. Enforcement of the right to recover these assessments may be had pursuant to Article IV, Section 9 herein.

Section 3. Maintenance of Lawns, Grassy Areas and Grounds Located on the Townhome Lot. Each owner shall have the right to plant a garden, flowers, shrubs (not to exceed four feet in height), and any other plants and said Owner shall be responsible for the maintenance of said area. In the event grass is planted and located within said area, the maintenance of the grass shall be the responsibility of the Association. Each Owner hereby expressly grants unto the Association an easement upon his Townhome Lot for the purpose of caring for, maintaining, etc., the grassy areas located therein.

ARTICLE VII Insurance

Every owner must place a copy of his hazard insurance policy (within the limits and amounts that may be required from time to time by the Association) on his Townhome with the Association . In the event any Owner fails or refuses to furnish the Association with a copy of said Policy, or in the amounts or the limits as set forth by the Association, the Association shall have the right to pay for said Owner that amount necessary to comply with the insurance regulations and requirements as may be set forth by the Association. Any amount so advanced shall be an assessment pursuant to Article III hereof and may be enforced pursuant to Article IV, Section 7 hereof.

ARTICLE VIII Party Walls

Section 1. General Rules of Law to Apply. Each wall which is built as a part of the original construction of the homes upon the properties and placed on the dividing line between the Lots shall constitute a party wall, and, to the extent not inconsistent with the provisions of this Article, the general rules of Georgia law regarding party walls and liability for property damage due to negligence or willful acts or omissions shall apply thereto.

Section 2. Sharing of Repair and Maintenance. The cost of reasonable repair and maintenance of a party wall shall be shared by the Owners who make use of the wall in portion to such use.

Section 3. Destruction by Fire or Other Casualty. If a party wall is destroyed or damaged by fire or other casualty, any Owner who has used the wall may restore it, and if the other Owners thereafter make use of the wall they shall contribute to the cost of the restoration thereof in proportion to such use without prejudice, however, to the right of any such Owners to call for a larger contribution from the others under any rule of law regarding liability for negligent or willful acts or omissions.

Section 4. Weatherproofing. Notwithstanding any other provisions of this Article, an Owner who by his negligent or willful act causes the party wall to be exposed to the elements shall bear the whole cost of furnishings the necessary protection against such elements.

Section 5. Rights to Contribution Runs with Land. The right of any Owner to contribution from any other Owner under this Article shall be appurtenant to the land and shall pass to such Owner's successors in title.

Section 6. Arbitration. In the event of any dispute arising concerning a party wall, or under the provisions of this Article such disputes shall be referred to arbitration . Each party shall choose one arbitrator, and such arbitrators shall choose one additional arbitrator and the decision shall be by a majority of all the arbitrators, and shall be binding upon the parties. Pursuant to Georgia law, judgement upon the award of the arbitrators may be maintained in any court of law with jurisdiction thereupon.

ARTICLE IX Use Restrictions

The following shall be restrictions on the use of the Properties which shall run with and bind the land, to-wit:
(A)No business activities shall be conducted on any portion of the property; provided, however, the foregoing restriction shall not apply to business activities, signs and billboards of the Declarant, its agents or assigns during the sale period. Notwithstanding , a Lot Owner may use a portion of his Lot to "do work at home," but may not run, operate, maintain, or control his business from his Lot.
(B)No noxious or offensive activity shall be carried on upon any Lot nor shall anything be done thereupon which may become a nuisance to the neighbors.
(C)Lot Owners shall not cause or permit anything to be hung or displayed on the outside of windows or placed on the outside walls or doors of any portion of their Townhome or Lot, and no sign, awning, canopy, shutter or radio or television antenna (except for a master antenna system installed by the Developer in the place indicated on the Plat, if any) shall be affixed to or placed upon the exterior walls or doors, roof, patios or balconies or any part hereof or exposed on or at any window, without the prior written consent of the Board of Directors.
(D)No boats, boat trailers, trucks of a capacity of one ton or more or unlicensed vehicles may be parked in streets, driveways, front yards or common parking areas for more than twenty-four hours. Disabled and stored vehicles are prohibited from being parked on the Property. For purposes of this subparagraph, a vehicle shall be considered "disabled" if it does not have a current license tag or is obviously inoperable. A vehicle shall be considered "stored" if it remains on the Property for seven (7) consecutive days or longer without the prior written permission of the Board of Directors. If a vehicle is parked on any portion of the Property in violation of this Section D or in violation of the Association's rules and regulations, the Board may place a notice on the vehicle specifying the nature of the violation and stating that after twenty-four (24) hours the vehicles may be towed. The notice shall include the name and telephone number of a person or entity which will do the towing and the name and telephone number of a person to contact regarding the alleged violation. If twenty-four (24) hours after such notice is placed on the vehicle the violations continues or thereafter occurs again within six (6) months of such notice, the vehicle may be towed in accordance with the notice, without further notice to the Owner or user of the vehicle. If a vehicle is parked in a fire lane, is blocking another vehicle or access to another Owner's or Occupant's Lot or Townhome, is obstructing the flow of traffic, is parked in any grassy area, is parked in a space which has been assigned as exclusively serving another Lot, or otherwise creates a hazardous condition, no notice shall be required and the vehicle may be towed immediately. If a vehicle is towed in accordance with this Section, neither the Association nor any officer or agent of the Association shall be liable to any person for any claim of damage as a result of the towing activity. Notwithstanding anything to the contrary herein, the Board of Directors may elect to use other available sanctions, rather than exercise its authority to tow.
(E)No temporary building, trailer, garage or building in the course of construction shall be used, temporarily or permanently, as a residence on any Lot.
(F)Fences shall not be permitted to be erected forward of the rear foundation wall of the house. The planting of trees, shrubs, or any other type of plantings that would afford privacy may be used in lieu of constructing additional fencing, provided, however, that they are maintained in accordance with the provisions set forth elsewhere in this Declaration and are approved by the Association; said approval shall not be unreasonably withheld.
(G)No animals, livestock or poultry of any kind shall be raised, bred or kept on any Lot, except that a reasonable number of dogs, cats or other household pets may be kept provided they are kept in accordance with the duly adopted Rules and Regulations of the Association; and provided further, they are not kept, bred or maintained for any commercial purpose; and further provided that they are not known as a vicious animal. For the purpose of these covenants, pit bull dogs are specifically not allowed to be raised, bred or kept on any portion of the Property.
(H)No lumber, materials, bulk materials, refuse or trash shall be kept, stored or allowed to accumulate on any Lot except building materials during the course of construction, maintenance or repair by the Declarant of any approved structure. Trash, garbage or other waste shall not be kept except in sanitary containers and such shall not be permitted to remain in public view except on days of trash collection. All containers or other equipment for the storage or disposal of such materials shall be kept in clean and sanitary condition.
(I)No water pipe, gas pipe, sewer pipe or drainage pipe shall be installed or maintained on any Lot above the surface of the ground. Easements have been reserved for sewers, drainage and utility installations and maintenance for such purposes and uses as are shown on the recorded Plat for the Properties. Within these easements no structure, planting or other material shall be placed or permitted to remain which may damage or interfere with the installation and maintenance of utilities, or which may change the direction or flow of drainage channels in the easements, or which may obstruct or retard the flow of water through drainage channels in the easements.
(J)The rights and duties with respect to sanitary sewer and water, cable television, electricity, gas and telephone lines and facilities shall be governed by the following:
(i)Whenever water, sanitary sewer, electricity, gas, cable television or telephone connections, lines, cables or any portion thereof, are or have been installed within the Properties, the Owner of any Lot, or the Association shall have the right, and are hereby granted an easement to the extent necessary therefore, to enter upon or have a utility company enter upon any portion of the Properties in which said installations lie, To repair, replace and generally maintain said installations.
(ii)The right granted in subparagraph (I) above shall be only to the extent necessary to entitle Owner or Association serviced by said installation to its full and reasonable use and enjoyment, and provide further that anyone exercising said right shall be responsible for restoring the surface of the easement area so used to its condition prior to such use.
(iii)In the event of a dispute between Owners with respect to the repair or rebuilding of said connections, or with respect to the sharing of the cost thereof, upon written request of one such Owners addressed to the Association, the matter shall be submitted to its Board of Directors, who shall decide the dispute, and the decision of the Board shall be final and conclusive on the parties.
(K)No clothing or any other household fabric shall be hung in the open on any Lot unless the same are hung from a device which is removed from view when not actually in use.
(L)Nothing contained in the Article shall be construed to limit in any way the rights and powers of the Board of Directors and the Architectural Control Committee to approve or disapprove of the erection of buildings, fences, walls, or other structures or of changes or alterations to the Properties as more fully provided in Article V hereof.

ARTICLE X Amendments

Section 0. In order to protect the equity of the individual Lot Owners at DRESDEN SQUARE, to carry out the purpose for which the Property was formed by preserving the character of the Property as a homogenous residential community of predominantly owner-occupied homes and by preventing the Property from assuming the character of a renter-occupied apartment complex, and to comply with the eligibility requirements for financing in the secondary mortgage market insofar as such criteria provide that the project be substantially owner-occupied, leasing of Lots shall be governed by the restrictions imposed by this Paragraph.

(1) Definitions.
(a) Leasing shall mean the regular occupancy of a Lot 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.
(b) Open Leasing Status shall authorize a Lot to be leased at any time. Each Lot at Dresden Square which is being leased on the date that this Declaration is recorded in the DeKalb County, Georgia records shall have Open Leasing Status until the Lot is sold at which time the Lot shall automatically be converted to Restricted Leasing Status. Unless so converted to Restricted Leasing Status, the Lot shall be in Open Leasing Status until such time as title is conveyed to any person or entity other than the person or entity holding record title on the date that this Declaration is recorded in the DeKalb County, Georgia records, after which conveyance the Lot shall automatically be converted to Restricted Leasing Status. Open Leasing Status may also be conferred upon a Lot as provided in subparagraph (2) below.
(c) Restricted Leasing Status shall subject a Lot to the restrictions on leasing contained in subparagraph (2) below. All Lots which are not being leased on the date that this Declaration is recorded in the DeKalb County, Georgia records shall be in Restricted Leasing Status unless converted to Open Leasing Status as provided in subparagraph (b) below.

(2) General. Owner of a Lot in Restricted Leasing Status may lease his or her Lot if ten (10%) percent or more of the Lots in the Property are in Open Leasing Status, except as provided in subparagraph (3) below for cases of undue hardship. Any Owner of a Lot in Restricted Leasing Status may apply in writing to the Board of Directors for conversion to Open Leasing Status in accordance with rules and regulations promulgated by the Board of Directors. Upon receipt of such written application, the Lot shall be placed at the end of a waiting list for conversion to Open Leasing Status. At such times as less than ten (10%) percent of the Lots are in Open Leasing Status, the Board shall notify the Owner of the Lot at the top of the waiting list of its conversion to Open Leasing Status, and such Owner shall have ninety (90) days within which to lease the Lot or it shall automatically revert to Restricted Leasing Status. Any Lot in Open Leasing Status shall automatically be converted to Restricted Leasing Status if the Lot is not subject to an approved lease for ninety (90) or more consecutive days.

(3) Undue Hardship. Notwithstanding the provisions of subparagraph (2) above, the Board of Directors shall be empowered to allow reasonable leasing of a Lot upon application in accordance with this Paragraph to avoid undue hardship, including, but not limited to, (a) where a Lot Owner must relocate his or her residence outside the Atlanta metropolitan area and cannot, within six (6) months from the date that the Lot was placed on the market, sell the Lot for a price no greater than the current appraised market value, after having made reasonable efforts to do so; (b) where the Owner dies and the Lot is being administered by his or her estate; and (c) where the Owner takes a leave of absence or temporarily relocates and intends to return to reside in the Lot, in which case the Lot Owner must reapply every year for renewal of the hardship exception. Those Owners who have complied with this subparagraph (3), have demonstrated that the inability to lease their Lot would result in undue hardship, and have obtained the requisite written approval of the Board may lease their Lots for such duration as the Board reasonably determines is necessary to prevent undue hardship.

Any Owner who believes that he or she must lease his or her Lot to avoid undue hardship shall submit a written application to the Board setting forth the circumstances necessitating the leasing and such other information as the Board may reasonable require. Leasing in the case of undue hardship shall be permitted only upon the Board's written approval of the Owner's application. When an application is approved, the Owner shall provide the Board with the name and phone number of the lessee and the Owner's address other than at the Property and other such information as the Board may reasonable require within ten (10) days after a lease has been signed by both parties.

The Board shall have the power to make and enforce reasonable rules and regulations and to fine, in accordance with the Declaration and Bylaws, in order to enforce the provisions of this subparagraph. Any transaction which does not comply with this Paragraph shall be voidable at the option of the Board of Directors.

(4) Leasing Provisions. Such leasing as is permitted by theis Paragraph shall be governed by the following provisions:
(a) General. All leases shall be in writing in a form approved by the Board prior to the effective date of the lease. A form which is deemed acceptable. All leases must be for an initial term of at least six (6) months shall be made available by the Board. There shall be no subleasing or assignment of leases unless approved in writing by the Board. Lots may be leased only in their entirety; no fraction or portion may be leased. No transient tenants shall be accommodated on a Lot. All leases shall be subject to the Declaration, the Bylaws and the rules and regulations of the Association. The Owner must make available to the lessee copies of the Declaration, Bylaws, and the rules and regulations, and the lease form shall provide that the Owner has made available to the lessee copies of the Declaration, Bylaws, and the rules and regulations.
(b) Notice. Within ten (10) days after entering into the lease of a Lot, the Owner shall provide the Board of Directors with the name and phone number of the lessee and the names of all other people occupying the Lot, the Owner's address other than at the Property, and such other information as the Board may reasonable require. Notwithstanding anything in the Declaration to the contrary, failure to provide the above information to the Board within ten (10) days after entering into the lease of a Lot may result in a fine against the Owner for each day that the information is not provided to the Board. Nothing herein shall be construed as giving any party the right to approve or disapprove a proposed lessee.
(c) Liability for Assessments, Use of Common Property, and Compliance with Declaration, Bylaws and Rules and Regulations. Any lease of a Lot shall be deemed to contain the following provisions, whether or not expressly stated therein, and each Owner covenants and agrees that any lease of a Lot shall contain the following language and agrees that if such language is not expressly contained therein, then such language shall be incorporated into the lease by existence of this covenant, and the lessee, by occupancy of the Lot, agrees to the applicability of this covenant and incorporation of the following language into the lease:

(i) Compliance with Declaration, Bylaws and Rules and Regulations. Lessee agrees to abide and comply with all provisions of the Declaration, Bylaws, and rules and regulations adopted pursuant thereto. Owner agrees to cause all Occupants of his or her Lot to comply with the Declaration, Bylaws and the rules and regulations adopted pursuant thereto and is responsible for all violations and losses caused by such Occupants, notwithstanding the fact that such Occupants of the Lot are fully liable and may be sanctioned for any violation of the Declaration, Bylaws, and rules and regulations adopted pursuant thereto. In the event that the lessee or a person living with the lessee violates the Declaration, Bylaws, or a rule or regulation for which a fine is imposed, such fine shall be assessed against the lessee; provided, however, if the fine is not paid by the lessee within the time period set by the Board of Directors, the Owner shall pay the fine upon notice from the Association of the lessee's failure to pay the fine. Any lessee charged with a violation of the Declaration, Bylaws, or rules and regulations adopted pursuant thereto is entitled to the same procedure to which an Owner is entitled prior to the imposition of a fine or other sanction.

Any violation of the Declaration, Bylaws, or rules and regulations adopted pursuant thereto is deemed to be a violation of the terms of the lease and authorizes the Owner to terminate the lease without liability and to evict the lessee in accordance with Georgia law. The Owner hereby delegates and assigns to Dresden Square Association, Inc., acting through the Board, the power and authority to evict the lessee on behalf of and for the benefit of the Owner, in accordance with the terms hereof. In the event the Association proceeds to evict the lessee, any costs, including attorney's fees and court costs, associated with the eviction shall be specially assessed against the Lot and the Owner thereof, such being deemed hereby as an expense which benefits the leased Lot and the Owner thereof.

(ii) Use of Common Property. The Owner transfers and assigns to the lessee, for the term of the lease, any and all rights and privileges that the Owner has to use the Common Property, including, but not limited to, the use of any and all recreational facilities and other amenities.

(iii) Liability for Assessments. Lessee agrees to be personally obligated for the payment of all annual and special assessments and all other charges against the Owner which become due during the term of the lease and any other period of occupancy by the lessee or which become due as a consequence of lessee's activities, including, but not limited to, activities which violate provisions of the Declaration, the Bylaws, or the rules and regulations adopted pursuant thereto. The above provision shall not be construed to release the Owner from any obligation, including the obligation for assessments, for which he or she would otherwise be responsible.

When a Unit Owner who is leasing his or her Unit fails to pay any annual or special assessment or any other charge for a period of more than thirty (30) days after it is due and payable, then the delinquent Unit Owner hereby consents to the assignment of any rent received from the lessee during the period of delinquency, and, upon request by the Board of Directors, lessee shall pay to the Association all unpaid annual and special assessments and other charges, as lawfully determined and made payable during the term of the lease and any other period of occupancy by the lessee; provided, however, lessee need not make such payments to the Association in excess of, or prior to the due dates for monthly rental payments unpaid at the time of the Board's request. All such payments made by lessee shall reduce, by the same amount, lessee's obligation to make monthly rental payments to lessor. If lessee fails to comply with the Board's request to pay assessments or other charges, lessee shall pay to the Association all late charges, fines, interest, and costs of collection, including, but not limited to, reasonable attorney's fees actually incurred, to the same extent lessee would be required to make such payments to the association if lessee were the Owner of the premises during the term of the agreement and any other period of occupancy by lessee.

(5) Applicability of this Section 10 (0). Leases existing on the date which this Declaration is recorded in the DeKalb County, Georgia records shall not be subject to the terms of this Paragraph; such leases may continue in accordance3 with the terms of the Original Declaration as it existed prior to the recording date of this Declaration. However, any assignment, extension, renewal, or modification of any lease agreement, including, but not limited to, changes in the terms or duration of occupancy, shall be considered a termination of the old lease and commencement of a new lease which must comply with the Paragraph. Any Owner of a Lot which is leased on the effective date of this Declaration shall place on file with the Board of Directors a copy of the lease agreement in effect within thirty (30) days of the date on which this Declaration is recorded in the DeKalb County, Georgia records.

This Section 10 (0) shall not apply to any leasing transaction entered into the holder of any first Mortgage on a Lot who becomes the Owner of a Lot through foreclosure or any other means pursuant to the satisfaction of the indebtedness secured by such Mortgage.

Section 1. Generally. This Declaration, and the terms provisions and restrictions thereof, may be amended only in accordance with the terms and provisions of this Article.

Section 2. Expansion Amendments. As more specifically provided in Section 3 hereof, the Declarant has the right to amend this Declaration at any time, and from time to time within the time period specified herein.

Section 3. Amendments by the Association. So long as the same shall not (a) adversely affect the title to any Owner's Lot: (b) materially alter or change any Owner's right to the use and enjoyment of his Townhome; or (c) otherwise make any material change in this Declaration , each Lot Owner agrees if requested to do so by Declarant, such Lot Owner will consent to the amendment of this Declaration (i) if such amendment is necessary to bring any provision hereof into compliance with any applicable governmental statute, rule, regulation or judicial determination which shall be in conflict therewith; (ii) if such amendment is necessary to enable any reputable title insurance company to issue title insurance coverage with respect to the Lots subject to the Declaration; (iii) if such amendments required by an institutional or governmental lender or purchaser of mortgage loans, including, for example, the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation, to enable such lender or purchaser to make or purchase mortgage loans on the Lots subject to this Declaration or (iv) if any such amendment is necessary to enable governmental agency or reputable private insurance company to insure mortgage loans on the Lots subject to this Declaration.

Section 4. Amendment by Lot Owners. Further, this Declaration may also be amended at any time and from time to time by the assent of Lot Owners having at least two-thirds (2/3) of the vote in the Association inclusive of any vote or votes appertaining to any Lot or Lots then owned by the Declarant. Amendments to this Declaration may be proposed by the Declarant, the Board of Directors of the Association or by petition signed by Lot Owners having at least thirty (30%) percent of the total votes of the Association. Agreement of the required majority of Lot Owners to any amendment of this Declaration shall be evidenced by their execution of the amendment. Any suck amendment of this Declaration shall become effective only when recorded, or at such later date as any be specified in the amendment itself.

Section 5. Consent to Mortgages. No amendment to this Declaration shall alter, modify, change or rescind any rights, title, interest or privilege herein granted or afforded to the holder of any mortgage affecting any of the Lots, unless such holder shall consent thereto in writing. The Written amendment shall also be recorded with such amendment.

Section 6. Effective Date. The effective date of any amendment shall be the date of recording the amendment in the Office of Superior Court of DeKalb County, Georgia.

ARTICLE XI General Provisions

Section 1. Enforcement. The Association or any Owner shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens and charges now and hereafter imposed by the provisions of this Declaration. Failure by the Association or by any owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter.

Section 2. Severability. Invalidation of any one of these covenants or restrictions by judgement or court order shall in no way affect any other provision which shall remain in full force and effect.

Section 3. Conflicts. In the case of any conflict between this Declaration and the Bylaws of the Association, the Declaration shall control.

Section 4. Amendments. Except where a high vote is required for action under any other provisions of this Declaration, in which case such higher vote shall be necessary to amend such provision, this Declaration may be amended by the affirmative vote, written consent (as provided for in the Bylaws), or any combination of affirmative vote and written consent of the members of the Association holding sixty-six and two-thirds (66-2/3%) percent of the total vote thereof. Notice of any meeting at which a proposed amendment will be considered shall state the fact of consideration and the subject matter of the proposed amendment. No amendment shall be effective until certified by the President and Secretary of the Association and recorded in DeKalb County, Georgia land records. Notwithstanding the foregoing, the Board of Directors, without the necessity of a vote from the owners, may amend this Declaration to comply with any applicable state, city or federal law, including but not limited to, compliance with applicable guidelines of the Federal National Mortgage Association ("Fannie Mae"), the Department of Housing and Urban Development ("HUD") and the Veterans Administration ("VA").

Any action to challenge the validity of an amendment adopted under this Paragraph must be brought within one (1) year of the effective date of such amendment. No action to challenge such amendment may be brought after such time.

ARTICLE XII

Section 1. Authority and Enforcement. The Property shall be used only for those uses and purposes set out in the Declaration. The Board of Directors shall have the authority to make, modify, repeal and enforce reasonable rules and regulations governing the conduct, use, and enjoyment of Lots and the Common Property; provided, copies of all such rules and regulations shall be furnished to all Owners and occupants. Any rule or regulation may be repealed by the affirmative vote or written consent of a Majority of the total Association vote at an annual or special meeting of the membership. Every Owner and occupant shall comply with the Declaration, Bylaws and rules and regulations of the Association and, in an appropriate case, one or more aggrieved Unit Owners, to take action to enforce the terms of the Declaration, Bylaws or rules and regulations.

The Board shall have the power to impose reasonable fines, which shall constitute a lien upon the Owner's Lot, and to suspend an Owner's right to vote or to use the Common Property for violation of any duty imposed under the Declaration, these Bylaws, or any rules and regulations duly adopted hereunder; provided, however, nothing herein shall authorize the Association or the board of Directors to limit ingress and egress to or from a Lot. In the event that any Occupant of a Lot violates the Declaration, Bylaws, or a rule or regulation and a fine is imposed, notice of such violation shall be sent to the Owner and the Occupant, and the fine shall first be assessed against such occupant; provided, however, if the fine is not paid by the Occupant within the time period set by the Board, the Lot Owner shall pay the fine upon notice from the Association, and the fine shall be an assessment and a lien against the Lot until paid. The failure of the Board to enforce any provision of the Declaration, Bylaws, or any rule or regulation shall not be deemed a waiver of the right of the Board to do so thereafter.

Section 1(A). Fining and Suspension Procedure. The Board shall not impose a fine or suspend the right to vote or to use the Common Property (unless an Owner is shown on the books or management accounts of the Association to be more than thirty (30) days delinquent in any payment due the Association in which case such suspensions shall be automatic) unless and until notice of the violation is given as provided in subsection 1A(a) below. Any such fine or fines may be effective or commence upon the sending of such notice or such later date as may be set forth in such notice, notwithstanding the violator's right to request a hearing before the Board to challenge such fine under subsection 1A(b) below.

(a) Notice. If any provision of the Declaration or Bylaws or any rule or regulation of the Association is violated, the Board shall serve the violator with written notice sent certified mail, return receipt requested, which shall state: (i) the nature of the alleged violation; (ii) the proposed sanction to be imposed; (iii) a statement that the violator may challenge the fact of the occurrence of a violation, the proposed sanction, or both, by written challenge and written request for a hearing before the Board, which request must be received by the Board within ten (10) days of the date of the notice; (vi) the name, address, and telephone number of a person to contact to challenge the proposed action. IF a timely challenge is made and the violation is cured within ten (10) days of the date of the notice, the Board, in its discretion, may, but is not obligated to, waive any sanction or portion thereof. In the event of a continuing violation, each day the violation continues or occurs again constitutes a separate offense, and fines may be imposed on a per diem basis without further notice to the violator.
(b) Hearing. If the alleged violator timely challenges the proposed action, a hearing before the Board of Directors shall be held in executive session affording the violator a reasonable opportunity to be heard. The hearing shall be set at a reasonable time and date by the Board, and notice of the time, date (which shall be not less than ten (10) days from the giving of notice without the consent of the violator), and place of the hearing and an invitation to attend the hearing and produce any statements, evidence, and witnesses shall be sent to the alleged violator. Proof of such notice 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 delivery, is entered by the officer or director who delivered such notice. The notice requirement shall be deemed satisfied if the violator 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. This Section shall be deemed complied with if a hearing is held and the violator attends and is provided an opportunity to be heard, notwithstanding the fact that the notice requirements contained herein are not technically followed.

Section 1(B). Additional Enforcement Rights. Notwithstanding anything to the contrary herein contained, the Association, acting through its Board of Directors, may elect to enforce any provision of the Declaration, the Bylaws, or the rules and regulations by self-help (specifically including, but not limited ot, the towing of vehicles that are in violation of parking rules and regulations) or by suit at law or in equity to enjoin any violation or to recover monetary damages or both without the necessity for compliance with the procedure set forth in Section (2) of this article. In any such action, to the maximum extent permissible, the Owner or Occupant responsible for the violation for which abatement is sought shall pay all costs, including reasonable attorney's fees actually incurred.

The Association or its duly authorized agent shall have the power to enter upon any portion of the Common Property to abate or remove, using such force as may be reasonable necessary, any structure, thing or condition which violates the Declaration, the Bylaws, or the rules and regulations. All costs of self-help, including reasonable attorney's fees, shall be assessed against the violating Lot Owner and shall be collected as provided herein for the collection of assessments.