By-laws

BY-LAWS OF LAUREL MEWS
A TOWNHOUSE CONDOMINIUM
Arlington, Virginia

Book 1984: Pages 1755-1780

Article I
General

Section 1. Applicability.

These By-Laws provide for the self government of LAUREL MEWS, a Townhouse Condominium, pursuant to the requirements of Article 3, Chapter 4.2 of Title 55 of the Code of Virginia. LAUREL MEWS is located in the County of Arlington, State of Virginia.

Section 2. Compliance.

Pursuant to the provisions of Section 55-79.53, Code of Virginia, as amended, every unit owner and all those entitled to occupy a unit shall comply with these By-Laws.

Section 3. Office.

The office of the Condominium and the Board of Directors shall be located at the Condominium or at such other place as may be designated from time to time by the Board of Directors.

Section 4. Terms.

Whenever the terms “Unit”, “Townhouse Unit”, “Family Unit”, or “Townhouse”, appear in the Condominium documents, they shall mean a Townhouse Condominium Unit as defined in Article IV of the Declaration.

Article II
Unit Owners Association

Section 1. Composition.

All of the Unit Owners of Units contained in the Condominium, acting as a group in accordance with the Condominium Act, the Declaration and these By-Laws, shall constitute the “Unit Owners Association”, who shall have the responsibility of administering the Condominium, establishing the means and methods of collecting the contributions to the Common Expenses, arranging for the management of the Condominium and performing all of the other acts that may be required to be performed by the Unit Owners Association by the Condominium Act and the Declaration. Except as to these matters which either the Condominium Act or the Declaration specifically require to be performed by the vote of the Unit Owners, the administration of the foregoing responsibilities shall be performed by the Board of Directors as more particularly set forth in Article III.

Section 2. Annual Meetings.

The first annual meeting of the members of the Association shall be held within one (1) year of the date of the recording of. these By-Laws. Thereafter annual meetings shall be held on the second Monday of January of each succeeding year. At such meeting there shall be elected by ballot of the members, or by appointment of the Declarant, as the case may be, a Board of Directors in accordance with the requirements of Article III of these By-Laws. The members may also transact such other business of the Association as may properly come before them.

Section 3. Place of Meetings.

Meetings of the Unit Owners Association shall be held at the Condominium or at such other suitable place convenient to the Unit Owners as may be designated by the Board of Directors.

Section 4. Special Meetings.

It shall be the duty of the President to call a special meeting of the Unit Owners Association if so directed by resolution of the Board of Directors or upon a petition signed and presented to the Secretary by Unit Owners owning not less than twenty percent (20%) of the Percentage interests of all Unit Owners. The notice of any special meeting shall state the time, place and purpose of such meeting. No business shall be transacted at a special meeting except as stated in the notice.

Section 5. Notice of Meetings.

It shall be the duty of the Secretary to mail a notice of each annual or special meeting of the Unit Owners pursuant to the provisions of Section 55-79.75, code of Virginia, as amended.

Section 6. Adjournment of Meetings.

If any meeting of the Unit Owners Association cannot he held because a quorum is not present, Unit Owners owning a majority of the Percentage interests who are present at such meeting, either in person or by proxy, may adjourn the meeting to a time not less than forty-eight (48) hours from the time the original meeting was called.

Section 7. Order of Business.

The order of business at all meetings of the Unit Owners Association shall be as follows:

(a) Roll Call

(b) Proof of notice of meeting

(d) Reports of officers and Board of Directors

(e) Reports of committees

(f) Election or appointment of inspectors of election (when so required)

(g) Election of members of the Board of Directors (when so required)

(h) Unfinished business

(i) New Business

Section 8. Voting.

At every meeting of the Unit Owners, the owners of each Unit shall have the right to cast one vote for each Unit owned. No Unit Owner shall be eligible to vote, either in person or by proxy, or be elected to the Board of Directors who is shown on the books or management accounts of the Association to be more than sixty (60) days delinquent in any payment due the Association.

Section 9. Conduct of Meeting.

The President shall preside over all meetings of the Unit Owners Association and the Secretary-Treasurer shall keep the minutes of the meetings and record in a Minute Book all resolutions adopted by the meeting as well as a record of all transactions occurring thereat. The books of the Unit Owners Association shall be at all times open for the inspection of any unit owner or mortgagee.

Article III
Board of Directors

Section 1. Number and Oualification.

The affairs of the Condominium shall be governed by a Board of Directors. Until Units representing 75% or more of the undivided interests in the Common Elements of all Units, including those which are added from the additional land as this Condominium is expanded pursuant to the reservation in The Declaration, shall have been sold by the Declarant and such sales fully settled by the purchaser or until Five (5) years after the date the Declaration is recorded, whichever occurs sooner, the Board of Directors shall consist of such of the officers and members of the Board of Directors of the Declarant, or such other persons, as shall have been designated by the Declarant. The initial Board of Directors shall be composed of three (3) persons, who may be, but are not required to be, officers, directors, or designees of the Declarant, Unit Owners or spouses of Unit Owners, or Mortgagees (or designees of mortgagees) of Units.

Section 2. Power and Duties.

The Board of Directors shall have all of the powers and duties necessary for the administration of the affairs of the Condominium and may do all such acts and things as are not by the Condominium Act or by these By-Laws directed to be exercised and done by the Unit Owners Association. The Board of Directors shall have the power from time to time to adopt any Rules and Regulations deemed necessary for the enjoyment of the Condominium provided such Rules and Regulations shall not be in conflict with the Condominium Act or the Declaration, or these By-Laws. In addition to the duties imposed by these By-Laws or by any resolution of the Unit Owners Association that may hereafter be adopted, the Board of Directors shall have the power to, and be responsible for, those duties and functions set forth in Section 55-79.80, Code of Virginia, as amended.

Section 3. Managing Agent.

The Board of Directors may, but shall not be required to, employ for the Condominium a professional Managing Agent at a compensation established by the Board of Directors, to perform such duties and services that the Board of Directors shall authorize. In the event a managing agent is employed, any contract entered into between the Association and any Management Agent shall contain a provision limiting the liability of the Association for acts of gross negligence of the Management Agent of any such duty, power or function so delegated to the Management Agent. Any such contract shall provide for termination by the Association for cause upon 30 days’ written notice thereof and the term of any such contract may not exceed one year, renewable by agreement of the parties for successive one year periods.

Section 4. Election and Term of Office.

At the first annual meeting of the Unit Owners Association, the term of office of one member of the Board of Directors shall be fixed at three (3) years, the term of office of one member of the Board of Directors shall be fixed at two (2) years, and the term of office of one member of the Board of Directors shall be fixed at one (1) year. Except for the Directors who shall be initially or subsequently appointed by the Declarant to serve pursuant to Section 1 of this Article III, the first Board of Directors shall be elected simultaneously with one ballot or election. The person receiving the highest number of votes shall be elected for the three year term. The person receiving the next highest number of votes shall be elected for the two year term. The person receiving the next highest number of votes shall be elected for the one year term. At the expiration of the initial term of office of each respective member of the Board of Directors, his successor shall be elected to serve for a term of three (3) years. The members of the Board of Directors shall hold office until their respective successors shall have been elected by the Unit Owners Association.

Section 5. Removal of Members of Board of Directors.

At any regular or special meeting of the Unit Owners Association duly called, any one or more of the members of the Board of Directors may be removed with or without cause by a majority of the Unit Owners and a successor may then and there be elected to fill the vacancy thus created. Any director whose removal has been proposed by the Unit Owners shall be given at least ten (10) days’ notice of the calling of the meeting and the purpose thereof and he shall be given an opportunity to be heard at the meeting.

Section 6. Vacancies.

Vacancies in the Board of Directors caused by any reason other than the removal of a Director by a vote of the Unit Owners Association shall be filled by a vote of a majority of the remaining Directors at a special meeting of the Board of Directors held for that purpose, promptly after the occurrence of any such vacancy, and each person so elected shall be a member of the Board of Directors for the remainder of the term of the member being replaced and until a successor shall be elected at the next annual meeting of the Unit Owners Association.

Section 7. Organization Meeting.

The date of the first meeting of the members of the Board of Directors elected at the annual meeting of the Unit Owners Association shall be determined by the Board immediately following the Unit Owners Association meeting and no further notice shall be necessary to the newly elected members of the Board of Directors. Such meeting shall occur within 30 days.

Section 8. Regular Meetings.

Regular meetings of the Board of Directors may be held at such time and place as shall be determined from time to time by a majority of the directors. Notice of regular meetings of the Board of Directors shall be given to each director, by mail or telegraph, at least three (3) business days prior to the day named for such meeting.

Section 9. Special Meetings.

Special meetings of the Board of Directors may be called by any director three (3) business days’ after notice to each director, given by mail or telegraph, which notice shall state the time, place and purpose of the meeting.

Section 10. Waiver of Notice.

Any director may, at any time, in writing, waive notice of any meeting of the Board of Directors, and such waiver shall be deemed equivalent to the giving of such notice. Attendance by a director at any meeting of the Board of Directors shall constitute a waiver of notice by him of the time and place of such meeting. If all directors are present at any meeting of the Board of Directors, no notice shall be required and any business may be transacted at such meeting.

Section 11. Fidelity Bonds.

The Board of Directors shall require that all officers and employees, including the Management Agent, of the Association handling or responsible for corporate or trust funds shall furnish fidelity bonds in an amount not less than 150% of the annual budget of the Association. The premiums on such bonds shall be paid by the Association and shall be a common expense of the Association.

Section 12. Compensation.

No director shall receive any compensation from the Condominium for exercising his duties and obligations as a director.

Section 13. Conduct of Meetings.

The president shall preside over all meetings of the Board of Directors and the Secretary shall keep a Minute Book of the Board of Directors recording therein all resolutions adopted by the Board of Directors and a record of all transactions and proceedings occurring at such meetings.

Section 14. Action Without Meeting.

Any action by the Board of Directors required or permitted to be taken at any meeting may be taken without a meeting if all of the members of the Board of Directors shall individually or collectively consent in writing to such action. Such written consent or consents shall be filed with the minutes of the proceedings of the Board of Directors.

Article IV
Officers

Section 1. Designation.

The principal officers of the Condominium shall be the President, Vice President, and the Secretary-Treasurer, all of whom shall be elected by and from the Board of Directors. The Board of Directors may appoint an assistant treasurer, an assistant secretary, and such other officers as in its judgment may be necessary.

Section 2. Election of Officers.

The officers of the Condominium shall be elected annually by the Board of Directors at the organization meeting of each new Board of Directors and shall hold office at the pleasure of the Board of Directors and until a successor is elected.

Section 3. Election of Officers.

Upon the affirmative vote of a majority of the members of the Board of Directors, any officer may be removed, either with or without cause, and his successor may be elected at any regular meeting of the Board of Directors, or at any special meeting of the Board of Directors.

Section 4. President.

The President shall be the chief executive of the Condominium. He shall preside at all meetings of Unit Owners Association and the Board of Directors. He shall have all of the general powers and duties which are incident to the office of president of a stock corporation organized under the Virginia Stock Corporation Act, including, but not limited to, the power to appoint committees from among the Unit Owners from time to time as he may in his discretion decide is appropriate to assist in the conduct of the affairs of the Condominium.

Section 5. Vice President.

The Vice President shall take the place of the President and perform his duties whenever the President shall be absent or unable to act. If neither the President nor the Vice President is able to act, the Board of Directors shall appoint some other member of the Board of Directors to act in the place of the President, on an interim basis. The Vice President shall also perform such other duties as shall from time to time be imposed upon him by the Board of Directors or by the President.

Section 6. Secretary-Treasurer.

The Secretary-Treasurer shall keep the minutes of all meetings of the Unit Owners Association and of the Board of Directors; he shall have charge of such books and papers as the Board of Directors may direct, and he shall, in general, perform all the duties incident to the office of the Secretary-Treasurer of a stock corporation organized under the Virginia Stock Corporation Act. The Secretary-Treasurer shall also have the responsibility for Condominium funds and securities and shall be responsible for keeping full and accurate financial records and books of account showing all receipts and disbursements, and for the preparation of all required financial data; he shall be responsible for the deposit of all monies and other valuable effects in the name of the Board of Directors, or the Managing Agent, in such depositories as may from time to time be designated by the Board of Directors.

Section 7. Agreements, Contracts, Deeds, Checks, etc.

All agreements, contracts, deeds, leases, checks and other instruments of the Condominium shall be executed by any two (2) officers of the condominium or by such other person or persons as may be designated by the Board rd of Directors.

Section 8. Compensation of Officers.

No officer shall receive any compensation from the Condominium solely for exercising his duties and obligations as an officer.

Article V
Liability and Indemnification of Officers and Directors

Section 1. Liability and Indemnification of Officers and Directors.

The Unit Owners Association shall indemnify every officer and Director of the Condominium against any and all expenses, including counsel fees, reasonably incurred by or imposed upon any officer or director in connection with any action, suit or other proceeding (including settlement of any suit or proceeding if approved by the then Board of Directors of the Condominium) to which he may be made a party by reason of being or having been an officer or director of the Condominium whether or not such person is an officer or director at the time such expenses are incurred. The officers and directors of the Condominium shall not be liable to the Unit Owners for any mistake of judgment, negligence, or otherwise, except for their own individual willful misconduct or bad faith. The officers and directors of the Condominium shall have no personal liability with respect to any contract or other commitment made by them, in good faith, on behalf of the condominium project (except to the extent that such officers or directors may also be owners of condominium units) and the Condominium shall indemnify and forever hold each such officer and director free and harmless against any and all liabilities to others on account of any such contract or commitment. Any right to indemnification provided for herein shall not be exclusive of any other rights to which any officer or director of the Condominium, or former officer or director of the condominium may be entitled.

Article VI
Operation of the Property

Section 1. Determination of Common Expenses and Assessments Against Unit Owners.

(a) Fiscal Year. The fiscal year of the Condominium shall consist of the twelve (12) month period commencing on January 1 of each year and terminating on December 31 of the same year.

(b) Preparation and Approval of Budget. Each year on or before December 1, the Board of Directors shall adopt a budget for the Condominium containing an estimate of the total amount which it considers necessary to pay the cost of insurance premiums and for other operating expenses, which will be required during the ensuing year. The Budget may also include:

(i) The cost of the maintenance or repair of any condominium unit in the event such maintenance or repair is reasonably necessary in the discretion of the Board of Directors to protect the common elements or to preserve the appearance or value of the condominium project or is otherwise in the interest of the general welfare of all owners of the condominium units; provided, however, that no such maintenance or repair shall be undertaken without a resolution by the Board of Directors and not without reasonable written notice to the owner of the condominium unit proposed to be maintained and provided further that the cost thereof shall be assessed against the condominium unit on which such maintenance or repair is performed and, when so assessed, a statement for the amount thereof shall be rendered promptly to the then owner of said condominium unit at which time the assessment shall become due and payable and a continuing lien and obligation of said owner in all respects as provided in Article X of these By-Laws.

(ii) Any amount necessary to discharge any lien or encumbrance levied against the condominium project, or any portion thereof, which may, in the opinion of the Board of Directors, constitute a lien against the common elements rather than the interest therein of the owner of any individual condominium unit.

(iii) Such budget may also include such reasonable amounts as the Board of Directors considers necessary to provide working funds for the Condominium, a general operating reserve, or reserve for contingencies and replacements. The Board of Directors shall send to each Unit Owner a copy of the budget, in a reasonably itemized form which sets forth the amount of the Common Expenses payable by each Unit owner, at least ten (10) days prior to the beginning of the fiscal year to which the budget applies. The said budget shall constitute the bases for determining each Unit Owner’s contribution for the Common Expenses of the Condominium.

(c) Assessment and Payment of Common Expenses. The total amount of the estimated funds required for the operation of the Property set forth in the budget for the fiscal year adopted by the Board of Directors shall he assessed against each Unit Owner in proportion to his respective Undivided Interest in the Common Elements, and shall be a lien against each Unit Owner’s Unit as provided in the Condominium Act as set forth in Section 55-79.84. On or before January 1st, April 1st, July 1st, and October 1st, of each fiscal year, such Unit Owner shall be obligated to pay to the Board of Directors or the Managing Agent (as determined by the Board of Directors) one-forth (1/4) of the annual assessment for such fiscal year made pursuant to the foregoing provisions. Within sixty (60) days after the end of each fiscal year, the Board of Directors shall supply to all Unit Owners a statement of the Common Expenses for such fiscal year actually incurred and paid together with a tabulation of the amounts collected pursuant to the budget adopted by the Board of Directors for such fiscal year, and showing the net amount over or short of the actual expenditures plus any reserves. Any amount accumulated in excess of the amount required for actual expenses and reserves may, if the Board of Directors deems it advisable, be credited according to each Unit Owner’s Undivided Interest in the Common Elements to the installmants due in the succeeding months of that fiscal year.

(d) Reserves. The Board of Directors may build up and maintain reasonable reserves for working capital, operations, contingencies and replacements. Extraordinary expenditures not originally included in the annual budget which may become necessary during the year shall be charged first against reserves. If the reserves are inadequate for any reason, including non-payment of any Unit Owner’s assessment, the Board of Directors may at any time levy a further assessment, which shall be assessed against the Unit Owners according to their respective Undivided Interests in the Common Elements, and which may be payable in a lump sum or in installments as the Board of Directors may determine. The Board of Directors shall serve notice of any such further assessment on all Unit owners by a statement in writing giving the amount and reason therefor, and such further assessment shall, unless otherwise specified in the notice, become effective with the next monthly payment which is due after the delivery or mailing of such notice of further assessment. All Unit Owners shall be obligated to pay the adjusted monthly amount of, if the additional assessment is not payable in installments, the amount of such assessment.

(e) Initial Assessment. When the first Board of Directors, elected or designated pursuant to these By-Laws, takes office, it shall determine the budget as defined in this Section for the period commencing thirty (30) days after their election and ending on the last day of the fiscal year in which their election occurs. Assessments shall be levied against the Unit Owners during said period as provided in paragraph (c) of this Section. The Board of Directors may levy an “initial assessment” against the initial purchaser at the time he settles on his purchase contract. Such initial assessment shall be based upon the Undivided interest in the Common Elements applicable to each Unit and shall be utilized for commencing the business of the Unit Owners Association. Such initial assessment shall not exceed an amount equal to one quarterly assessment made pursuant to (c) above.

(f) Effect of Failure to Prepare or Adopt Budget. The failure or delay of the Board of Directors to prepare or adopt the annual budget for any fiscal year shall not constitute a waiver or release in any manner of a Unit Owner’s obligation to pay his allocable share of the Common Expense as herein provided, whenever the same shall be determined and in the absence of any annual budget or adjusted budget, each Unit Owner shall continue to pay the quarterly charge at the then existing quarterly rate established for the previous fiscal period until the new annual or adjusted budget shall have been mailed or delivered.

(g) Accounts. All sums collected by the Board of Directors with respect to assessments against the Unit Owners may be comingled into a single fund, but shall be identified and accounted for each Unit Owner in accordance with his Undiveded interest in the Common Elements.

(h) Books and Accounts. Books and accounts of the Association shall be kept under the direction of the Treasurer in accordance with good accounting practices. The same shall include books with detailed accounts, in chronological order, of receipts and of the expenditures affecting the Condominium and its administration and shall specify the maintenance and repair expenses of the general and limited common elements and services and of any other expenses incurred.

(i) Inspection of Books. The books and accounts of the Association and vouchers accrediting the entries made thereupon, shall be available for examination by the members of the Association, and/or their duly authorized agents or attorneys and to the institutional holders of an obligation secured by a first mortgage or deed of trust on any unit and/or its duly authorized agents or attorneys, during normal business hours and for purposes reasonably related to their interests as members.

Section 2. Payment of Common Expenses.

All Unit owners shall be obligated to pay the Common Expenses assessed by the Board of Directors pursuant to the provisions of Section 1 of this Article and such expenses not paid within 15 days of their due date shall be in default. No Unit Owner shall be liable for the payment of any part of the Common Expenses assessed against his Unit subsequent to a sale, transfer or other conveyance by him of such Unit. The purchaser of a Unit shall be jointly and severally liable with the selling Unit owner for all unpaid assessments against the latter for his proportionate share of the Common Expenses up to the time of conveyance, without prejudice to the purchaser’s right to recover from the selling Unit Owner the amounts paid by the purchaser thereof. Any Unit Owner may be entitled to a statement from the Board of Directors or Managing Agent setting forth the amount of the unpaid assessments against the Unit Owner pursuant to Section 55-79.84 (h) of the Code of Virginia, as amended. Provided, further, that if an institutional mortgagee of a first mortgage of record obtains title to a Unit as a result of foreclosure of a first mortgage, such purchaser, its successor, and assigns shall not be liable for, and such Unit shall not be subject to a lien for the payment of Common Expenses assessed prior to the acquisition of title of such Unit by such purchaser pursuant to the foreclosure sale. Such unpaid share of Common Expenses assessed prior to the acquisition of title to such Unit by such purchaser pursuant to the foreclosure sale shall be collectible from all Unit Owners, including the purchaser of the foreclosure sale in proportion to their respective Undivided interests in the Common Elements.

Section 3. Collection of Assessments.

The Board of Directors shall take prompt action to collect any assessment for Common Expenses due from any Unit Owner which remain unpaid for more than thirty (30) days from the due date for payment thereof. Such collection shall be pursuant to the provisions of Section 55-79,84.

Section 4. Additions, Alterations or Improvements by Unit Owners.

No Unit Owner shall make any alteration in or to his Unit except as provided in Section 55-79.68, Code of Virginia, as amended.

Section 5. Electricity, Utilities, Etc.

All Townhouse Units are equipped with individual electric meters. The cost of all such utilities directly metered to such individual Townhouse Units shall be the obligation of the individual owners to which such utilities are metered.

Section 6. Community Metered Utilities.

Community metered utilities such as electricity for site lighting and water shall be a Common Expense to be shared equally by all Unit Owners.

Section 7. Paved Drive Areas.

The paved drive and parking areas located within the project shall be General Common Elements. Said paved drive areas shall be maintained, repaired, and replaced by the Unit Owners Association and the cost of such maintenance, repair and/or replacements shall be deemed a Common Expense to be shared by the Unit Owners according to their respective proportionate interests in said Common Elements of the project.

Section 8. Maintenance of Limited Common Areas.

The cost and responsibility for the maintenance of all Limited Common Areas, with the exception of the limited common parking areas, shall be an individual expense of the unit to which such limited common area appertains.

Section 9. Rear Yard Wall and Fences.

Rear yard walls and fences attached to units shall be deemed General Common Elements, and the cost of maintenance, repair and/or replacement thereof shall be a Common Expense to the Unit Owners.

Article VII
Insurance

Section 1.

Each Unit Owner shall at his own cost and expense obtain and maintain at all times fire insurance with extended coverage, vandalism, malicious mischief and windstorm endorsements, insuring his entire unit (including all of the unit’s bathroom and kitchen fixtures initially installed therein by Declarant, but not including furniture, furnishings or other personal property supplied or installed by Unit owners), covering his interest and that of his mortgagee, as their interest may appear, in the amount equal to at least 100% of replacement value of the unit.

All policies of insurance, procured by Unit Owners, shall be written with a company licensed to do business in the State of Virginia and holding a rating of “AAA” or better by Bests’ Insurance Reports.

Replacement value of units shall be determined annually by the Board of Directors, and individual Unit Owners shall maintain said insurance coverage in such amounts as may be determined by the Board of Directors. Each Unit Owner shall be required to furnish to the Board of Directors such evidence of such coverage and payments of premiums therefor as the Board reasonably deems necessary.

Section 2.

The Board of Directors shall, as a Common Expense, be required to the extent obtainable to obtain and maintain the following insurance:

(i) Fire insurance with extended coverage, vandalism, malicious mischief and windstorm endorsements, insuring structures owned in common by Unit Owners (i.e., the accessory buildings and common walls). Said insurance coverage to be in an amount equal to at least 100% of replacement value of said structures.

(ii) Workmen’s Compensation insurance if and to the extent necessary to meet the requirements of law.

(iii) Such other insurance as the Board of Directors may determine.

The Board of Directors shall also be required to obtain and maintain, to the extent obtainable, public liability and property damage insurance in such limits as the Board of Directors may from time to time determine, insuring the Declarant, each member of the Board of Directors, the Managing Agent, if any, and each Unit Owner against any liability to the public or to the Unit Owners, (and their invitees, agents and employees arising out of, or incident to, the ownership and/or use of the Condominium property). Said insurance shall be issued on a comprehensive liability basis and shall contain a cross liability endorsement under which the rights of a named insured under the policy shall not be prejudiced with respect to his action against another named insured. The Board of Directors shall review such limits once a year, but in no event shall such insurance be less than ONE MILLION DOLLARS ($1,000,000.00) with respect to any one accident or occurrence and FIFTY THOUSAND DOLLARS ($50,000.00) with respect to any claim for property damage. It shall be the responsibility of each Unit Owner to obtain, at his own expense, liability insurance with respect to his ownership and/or use of the interior of his unit, and the Board of Directors shall not be responsible for obtaining such insurance.

Article VIII
Repair and Reconstruction after Fire or Other Casualty

Section 1. When Repair and Reconstruction are Required.

In the event of damage to or destruction of all or any part of the Condominium as a result of fire or other casualty (unless eighty percent (80%) of the Unit Owners vote not to proceed with the reconstruction and repair of the Condominium), Unit Owners shall be required to arrange under the supervision of the Board of Directors for the prompt repair and restoration of the damaged units, (including any damaged unit and any floor covering or any kitchen or bathroom fixtures initially installed therein by the Declarant and replacements thereof installed by the Unit Owners, but not including any other furniture, furnishings, fixtures or equipment installed by the Unit Owners in the units). Notwithstanding the foregoing, each Unit Owner shall have the right to supervise the redecorating of his own unit.

Section 2. Procedure for Reconstruction and Repair.

(a) Cost Estimates. Immediately after a fire or other casualty causing damage to any of the units, the Board of Directors and owners of affected units shall obtain reliable and detailed estimates of costs of repairing and restoring the units (including any damaged unit and any floor covering and kitchen and bathroom replacements thereof installed by the Unit Owner but not including any other furniture, fixtures or equipment installed by the Unit Owner in the unit) to a condition as good as that existing before such casualty. Such costs may also include professional fees and premiums for such bonds as the Board of Directors determines to lie necessary.

(b) Assessments. If the proceeds of insurance are not sufficient to defray the said estimated costs or reconstruction and repair as determined by the Board of Directors, or if at any time during reconstruction and repair, or upon completion of reconstruction and repair, the funds for the payment of the costs thereof are insufficient, assessments shall be made against the Unit Owners of the units so repaired or reconstructed.

(c) Plans and Specificiations. Any such reconstruction or repair shall be substantially in accordance with the plans and specifications under which the property was originally constructed.

(d) Encroachments. Encroachments upon or in favor of units which may be created as a result of such reconstruction or repair shall not constitute a claim or basis for any proceeding or action by the Unit Owner upon whose property such encroachment exists, provided that such reconstruction was substantially in accordance with the Architectural Plans under which the property was originally constructed. Such encroachment shall be allowed to continue in existence for so long as the reconstructed building shall stand.

Section 3. When Reconstruction is Not Required.

If eighty percent (80%) of the Unit Owners vote not to proceed with repair or restoration, the Condominium shall be deemed to be terminated pursuant to Section 55-79.72, Code of Virginia, as amended.

Article IX
Mortgagees

Section 1. Notice to Board of Directors.

Any owner of any unit in the Condominium who mortgages such unit shall promptly notify the Board of Directors of the name and address of his mortgagee and, if requested to do so, shall file a conformed copy of such mortgage with the Board of Directors. The Board of Directors shall maintain suitable records pertaining to such mortgagees.

Section 2. Consents.

Any other provision of these By-Laws or of the Declaration, to the contrary notwithstanding, except when required or permitted by the Virginia Condominium Act, the Association shall not institute any proceeding without the prior written consent of all first mortgagees of record, to take any of the following actions:

(a) Abandon or terminate the Condominium; or

(b) Modify or amend the provisions of the Condominium instruments; or

(c) Modify the method of determining and collecting Common Expense assessments and/or other assessment as provided herein.

(d) Partition, subdivide, transfer or otherwise dispose of any of the Common Elements of the Condominium; or

(e) Resolve to use the proceeds of casualty insurance for any purpose other than the repair or restoration of the Common Elements.

When used herein, “consent” shall be presumed at the expiration of forty-five (45) days after notice of any proposed change, etc., to first mortgagees of record.

Section 3. Notice of Eminent Domain Proceedings; Proposed Acquisitions.

Any Owner of any unit in the Condominium shall promptly notify the Board of Directors of any notice received of any condemnation proceeding involving his unit, the Common Elements or the Limited Common Elements or of any proposed acquisition by a condemning authority. The Board of Directors shall promptly notify in writing all first mortgagees of record of any notice so received and of any similar notice or information received directly by the Board of Directors.

Section 4. Notice to Mortgagees.

The Association shall notify all mortgagees affected upon the substantial damage to or destruction of any Common Element or unit.

Section 5. Notice of Unpaid Assessments for Common Expenses.

The Board of Directors, whenever so requested in writing by a mortgagee of a unit, shall promptly report any of the unpaid assessments for Common Expenses due from, or any other default by, the Unit Owner of the mortgaged unit.

Section 6. Notice of Default.

The Board of Directors, when giving notice to a Unit Owner of a default in paying an assessment for Common Expenses or any other default, shall send a copy of such notice to each holder of a mortgage covering such Unit Owner’s unit whose name and address has theretofore been furnished to the Board of Directors.

Section 7. Definition.

As used in this article, the term “mortgagee” shall mean any mortgagee and shall not be limited to institutional mortgagees and the term “mortgage” shall include a deed of trust. As used generally in these By-Laws, the term “institutional holder” or “institutional mortgagee” shall include banks, trust companies, insurance companies, savings and loan associations, pension funds and any corporation, including a corporation of, or affiliated with, the United States Government, or any agency thereof.

Article X
Compliance and Default

Section 1. Relief.

As set forth in Section 55-79.53 Code of Virginia, as amended, each Unit Owner of a unit shall be governed by, and shall comply with, all of the terms of the Declaration, these By-Laws, and the Rules and Regulations, and any amendments of the same. A default by a Unit Owner shall entitle the Unit Owners Association, acting through its Board of Directors, or through any Managing Agent, to the following relief:

(a) Legal Proceedings. Failure to comply with any of the terms of the Declaration, these by-Laws and the Rules and Regulations shall be grounds for relief which may include, without limiting the same, an action to recover any sums due for money damages, injunctive relief, foreclosure of the lien for payment of all assessments, any other relief provided for in these By-Laws or any combination thereof and any other relief afforded by a court of competent jurisdiction, all of which relief may be sought by the Unit Owner Association, the Board of Directors, any Managing Agent, or, if appropriate, by an aggrieved Unit Owner.

(b) Additional Liability. Each Unit owner shall be liable for the expenses of all maintenance, repair or replacement rendered necessary by his act, neglect or carelessness or the act, neglect or carelessness of any member of his family or employees, agents, licensees or leasees, but only to the extent that such expense is not covered by the proceeds of insurance carried by the Board of Directors. Such liability shall include any increase in fire insurance rates occasioned by use, misuse, occupancy or abandonment of any unit or its appurtenances. Nothing contained herein, however, shall be construed as modifying any waiver by any insurance company or its rights of subrogation.

(c) Costs and Attorneys’ Fees. In any proceeding arising out of any alleged default by a Unit Owner, the prevailing party shall be entitled to recover the costs of the proceeding, and such reasonable attorneys’ fees as may be determined by the court.

(d) No Waiver of Rights. The failure of the Unit Owners Association, the Board of Directors, or of a Unit Owner to enforce any right, provision, covenant, or condition which may be granted by the Declaration, these By-Laws or the Rules and Regulations shall not constitute a waiver of the right of the Unit Owners Association, the Board of Directors, or the Unit Owner to enforce such a right, provision, covenant, or condition in the future. All rights, remedies and privileges granted to the Unit Owners Association, the Board of Directors, or any Unit Owner pursuant to any term, provision, covenant or condition of the Declaration, these By-Laws, or the Rules and Regulations shall be deemed to be cumulative, and the exercise of any one or more thereof shall not be deemed to constitute an election of remedies, nor shall it preclude the party exercising the same from exercising such privileges as may be granted to such party by the Declaration, these By-Laws or the Rules and Regulations, or at law or in equity.

(e) Interest. In the event of a default by any Unit Owner in paying any Common Expenses or other sum assessed against him which continues for a period in excess of fifteen (15) days, such Unit Owner may, at the option of the Board of Directors, be obligated to pay interest on the amounts due at the rate of eight percent (8%) per annum from the due date thereof.

(f) Abatement and Enjoinment of Violations by Unit Owners. The violation of any rule or regulation adopted by the Board of Directors, or the breach of any By-Law contained herein, or the breach of any provision of the Declaration shall give the Board of Directors the right, in addition to any other rights set forth in these By-Laws to enjoin, abate or remedy by appropriate legal proceedings, either at law or in equity, the continuance of any such breach.

Section 2. Lien for Contributions.

Any sum assessed by the Unit Owners Association for the share of the Common Expenses chargeable to any unit and remaining unpaid for a period of thirty (30) days or longer after default shall constitute a lien on such unit and shall be enforced pursuant to the provisions of Section 55-79.84, Code of Virginia, as amended.

Article XI
Use Restrictions

Section 1. Permitted Uses.

No part of the Property shall be used for other than housing and parking and the related common purposes for which the Property was designed. Each unit shall be used as a residence for a single family and for no other purpose, except that such a unit may be used as a professional office upon the written consent of the Board of Directors provided that such use is consistent with all valid laws, zoning ordinances and regulations of all governmental agencies having jurisdiction in respect of the Property, and, provided further, that a condition for such consent each such Unit Owner agrees to pay and pays any increase in the rate of insurance for the Property which results from such professional use. An Owner may use a portion of his unit for an office or studio provided that the activities therein shall not interfere with the quiet enjoyment or comfort of any other Owner, and provided further that in no event shall any part of the Property be used as a school or music studio.

Section 2. Leasing.

No Condominium Unit within the project shall be rented for transient or hotel purposes or, without the prior written approval of the Board of Directors, for any period less than three (3) months. Any owner of any Condominium Unit who shall lease such unit shall, promptly following the execution of any such lease, forward a conformed copy thereof to the Board of Directors. Any such lease shall contain a provision to the effect that the rights of the tenant to use and occupy the Condominium Unit shall be subject and subordinate in all respects to the provisions of the Declaration and these By-Laws and to such other reasonable rules and regulations relating to the use of the Common Elements, or other “House Rules”, as the Board of Directors may from time to time promulgate. The provisions of this subsection shall not apply to any institutional mortgagee of any Condominium Unit who comes into possession of the unit by reason of any remedies provided by law or in such mortgage or as a result of a foreclosure sale or other judicial sale or as a result of any proceeding, arrangement, or deed in lieu of foreclosure.

Section 3. Prohibited Uses and Nuisances.

(a) No noxious or offensive trade or activity shall be carried on within the Condominium or within any unit situate thereon, nor shall anything be done therein or thereon which may be or become an annoyance to the neighborhood or the other owners.

(b) Nothing shall be done or maintained in any Condominium Unit or upon any Common Elements which will increase the rate of insurance on any Condominium Unit or any Common Elements, or result in the cancellation thereof, without the prior written approval of the Board of Directors. Nothing shall be done or maintained in any Condominium Unit or upon any Common Elements which would be in violation of any law. No waste shall be committed upon any Common Elements.

(c) The maintenance, keeping, breeding, boarding or raising of animals, livestock, or poultry of any kind, regardless of number, shall be and is hereby prohibited within any Condominium Unit or upon any Common Elements, except any Unit Owner or his guests or invitees may keep and maintain within his respective unit, or attached Limited Common Elements, one or more pets provided that they do not create a nuisance to the other Unit Owners, and that they are not kept or maintained for commercial purposes or for breeding. Pets shall not be permitted upon the Common Elements of the Condominium unless they are carried or leashed. Any Unit Owner who keeps or maintains any pet upon any portion of the Condominium shall be deemed to have indemnified and agrees to hold the Unit Owners Association, each of its members and the Declarant free and harmless from any loss, claim or liability of any kind or character whatever arising by reason of keeping or maintaining such pet within the Condominium.

(d) No enclosures of any type shall be permitted to be placed on or over Limited Common Areas and walkways leading thereto without the prior written consent of the Board of Directors.

(e) Except for such signs as may be posted by the Declarant for promotional or marketing purposes, no signs of any character shall be created, posted or displayed upon, in, from or about any Condominium Unit, Common Elements or Limited Common Elements without prior approval in writing by the Board of Directors. The provisions of this subsection shall not be applicable to the institutional holder of any first mortgage which comes into possession of any unit by reason of any remedies provided for in the mortgage, foreclosure of any mortgage or any deed or other proceeding in lieu of foreclosure. Notwithstanding anything contained herein to the contrary, Unit Owners shall be allowed to place “For Sale” or “For Rent” signs on their units not to exceed 12″ x 12″ in size.

(f) No junk vehicle or commercial vehicle will be allowed on any Common Element or Limited Common Element. No other vehicle on which current registration plates are not displayed may be parked on any Common Element or Limited Common Element, nor shall the repair or extraordinary maintenance of automobiles or other vehicles be carried out thereon. No boats, trailers, or other recreational type vehicles may be parked on any of the Common or Limited Common Elements without the prior written approval of the Board of Directors.

(g) No shed or storage building or other structure shall be of a greater height than the adjoining rear yard, fence or wall of any unit.

(h) No person shall paint the exterior or otherwise change the color scheme of the exterior of any unit different than the original color of said unit without the proposed color thereof being approved by the Board of Directors of the Unit Owners Association.

(i) No building, fence, wall or other structure other than those built by the Declarant shall be commenced, erected or maintained upon the Property, nor shall any exterior addition to or change, alteration or improvement thereof be made until the plans and specifications 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 Board of Directors of the Unit Owners Association.

(j) No burning of any trash and no unreasonable or unsightly accumulation or storage of litter, new or used building materials, or trash of any other kind shall be permitted within any unit or upon any common Elements. Trash or garbage containers shall not be permitted to remain in public view. All refuse shall be deposited with care in containers designated for such purpose.

(k) No structure of a temporary character, trailer, tent, shack, barn or other outbuilding shall be maintained upon any Common Elements at any time. Outdoor clothes dryers or clothes lines shall not be maintained upon any unit, Common or Limited Common Element at any time. No clothing, laundry or the like shall be hung from any part of any unit or from or upon any deck or patio.

(l) No outside television or radio aerial or antenna, or other aerial or antenna, for reception or transmission, shall be maintained upon any unit or upon any Common Elements without prior written consent of the Board of Directors.

Article XII
Condemnation

Section 1. Condemnation.

In the event of a taking in condemnation or by eminent domain, the provisions of Section 55-79.44, Code of Virginia, as amended, shall prevail and govern.

Article XIII
Miscellaneous

Section 1. Notices.

All notices, demands, bills, statements, or other communications under these By-Laws shall be in writing and shall be deemed to have been duly given if delivered personally or if sent by registered or certified mail, return receipt requested, first class postage prepaid:

(i) If to a Unit Owner, at the address which the Unit Owner shall designate in writing and file with the Secretary-Treasurer, or if no such address is designated, at the address of the unit of such Unit Owner; or

(ii) If to the Unit Owners Association or the Board of Directors at the address of any officer or director, or at such other address as shall be designated by the notice in writing to the Unit Owners pursuant to this Section.

Section 2. Invalidity.

The invalidity of any part of these By-Laws shall not impair or of affect in any manner the validity, enforceability or effect of the balance of these By-Laws.

Section 3. Captions.

The captions herein are inserted only as a matter of convenience and for reference, and in no way define, limit or describe the scope of these By-Laws, or the intent of any provision thereof.

Section 4. Gender.

The use of the masculine gender in these By-Laws shall be deemed to include the feminine gender and the use of the singular shall be deemed to include the plural, whenever the context so requires.

Article XIV
Amendments to By-Laws

Section 1. Amendments.

These By-Laws may be modified or amended in accordance with the method specified in the Virginia Condominium Act, either:

(a) By a vote of seventy-five percent (75%) of the undivided interest in the Common Elements or Limited Common Elements of the Unit Owners at any regular or special meeting, provided that notice of the proposed amendment shall have been given to each Unit Owner at least twenty-one (21) days in advance of such meeting; and

(b) Pursuant to a written instrument duly executed by at least seventy-five percent (75%) of the undivided interests in the Common Elements or Limited Common Elements of the Unit Owners.

Section 2. Approval of Mortgagees.

The Unit Owners Association shall notify all holders of obligations secured by first mortgage or deed of trust liens on units of any proposal to amend the Condominium Instruments not later than thirty (30) days prior to recordation of any such amendment. Furthermore, no amendment to the Condominium Instruments shall be recorded until the Unit Owners Association shall have received the written approval of at least seventy-five percent (75%) of the institutional holders of obligations secured by a first mortgage or deed of trust lien on a unit.

Section 3. Recording.

A modification or amendment of these By-Laws shall become effective only if such modification or amendment is recorded in the Land Records of Arlington County, Virginia.

Section 4. Conflicts.

No modification or amendment of these By-Laws may be adopted which shall be inconsistent with the provisions of the Condominium Act. A modification or amendment once adopted and recorded as provided for herein shall then constitute part of the official By-Laws of the Condominium, and all Unit Owners shall be bound to abide by such modification or amendment.

BY-LAWS OF LAUREL MEWS A TOWNHOUSE CONDOMINIUM Arlington, Virginia

Contents

Article I General