Article XVIII — Amendment of This Declaration

Section 18.01 — Amendment Before Close of First Sale

Before the close of escrow for the first sale of a Lot in the Development to a purchaser other than Declarant, this Master Declaration may be amended or revoked in any respect by the execution of an instrument amending or revoking the Declaration signed by Declarant and any Mortgagee of record, provided the consent or approval of the Commissioner of the California Department of Real Estate is first obtained to the extent required by California law. The amending or revoking instrument shall make appropriate reference to this Master Declaration and shall be Recorded.

Section 18.02 — Amendment After Close of First Sale

After the close of escrow for the first sale of a Lot in the Development to a purchaser other than Declarant, this Master Declaration may be amended or revoked in any respect upon compliance with the following provisions:

(a) Member Approval Requirements. Any amendment shall be approved by the vote or assent by written ballot of the holders of not less than fifty-one percent (51%) of the Voting Power of each class of Members. If a two-class voting structure is no longer in effect in the Master Association because of the conversion of Class B membership to Class A membership, as provided in the Master Association’s Bylaws, any amendment thereof will require the vote or assent by written ballot of both: (i) fifty-one percent (51%) of the total voting power of the Master Association; and (ii) the vote of fifty-one percent (51%) of the total Voting Power held by Members other than the Declarant. Notwithstanding the foregoing, the percentage of the voting power necessary to amend a specific clause or provision of this Master Declaration shall not be less than the percentage of affirmative votes prescribed for action to be taken under that clause.

(b) Additional Approvals for Amendments to Particular Provisions.

(i) Mortgagee Approvals. Mortgagee approvals shall be required to amend any of the provisions described in Article XIII, above.

(ii) Declarant Approvals. The following provisions may only be amended with the prior written consent of the Declarant(s) for so long as the Declarant owns any Lots or Separate Interests in the Development or any portion of the Subsequent Phase Property: Sections 1.21, 1.28, 1.31, 1.32, 1.38, 2.03(c), 3.04(b), 5.02, 12.09, 19.02, Articles XIV and XV, and Exhibit “C”.

(iii) Approval by the City. The following provisions of this Master Declaration reflect Entitlements Documents conditions and RCMC conditions for the Development imposed by the City and may only be amended, changed or deleted with the prior written consent of the City: Sections 1.01; 1.10; 1.16; 1.24; 1.26; 2.02(b); 6.03; 8.01(a)(iv); 6.08; 6.09; 7.01; 7.02(a)(ii); 8.01(a)(iv); 8.01(b); 8.02 to the extent a sentence references RCMC; 8.01(c)(ii),(iii); 8.01(e); 8.01(f)(i)-(iii); 8.02; 8.03 12.08.

Section 18.03 — Restatements

This Section describes the methods for restating the Declaration after an amendment or amendments are duly approved.

Section 18.04 — General

The Board has the right, by resolution without the necessity of consent by the Owners, to restate this Master Declaration when it has been properly amended pursuant to its requirements for amendment. Such restatement shall be effective upon execution of the restatement by any two (2) officers of the Master Association and its Recordation. Upon Recordation of the restatement, the restatement shall supersede the prior declaration and its amendments in their entirety, without, however, affecting the priority of the Declaration in the chain of title to all properties that are subject to the Declaration as established by the Declaration initial date of Recordation.

Section 18.05 — Form of Restatement

The restatement shall restate the entire text of the original document, with these exceptions: (i) changes incorporating all amendments approved by the Owners; (ii) changes made to rearrange or delete the text for consistency with the approved amendments; (iii) changes made to delete material no longer legally effective or legally required, such as the provisions described in the section entitled “Amendment of Declarant Benefit Provisions;” (iv) the addition of a statement that the Board has authorized the restatement pursuant to this section; (v) changes made to delete any provision declared illegal by constitutional or statutory enactment, by regulation, or by controlling judicial opinion; and (vi) changes needed to distinguish the restatement from the original document, such as title, section, or subsection numbering changes.

Section 18.06 — Department of Real Estate

An amendment to this Master Declaration, Bylaws, or other governing instruments of the Master Association shall require immediate notification of the California Department of Real Estate in accordance with section 2800 of the Commissioner’s Regulations so long as the Development, or any portion thereof, are subject to an outstanding Final Subdivision Public Report.

Section 18.07 — Effective Date of Amendment

The amendment will be effective upon the Recording of a Certificate of Amendment, duly executed and certified by the president and secretary of the Master Association setting forth in full the amendment so approved and that the approval requirements of subsection (a) or (b), above, have been duly met. If the consent or approval of any governmental authority, Mortgagee, or other entity is required under this Master Declaration to amend or revoke any provision of this Master Declaration, no such amendment or revocation shall become effective unless such consent or approval is obtained.

Section 18.08 — Reliance on Amendments

Any amendments made in accordance with the terms of this Master Declaration shall be presumed valid by anyone relying on them in good faith.