Article 3 – Procedures and Fees

3.1 Approval: Written approval of home construction plans is required prior to commencement of any clearing, grading or construction. Cannonsgate HOA fees must be current and all other fees must be paid before submittals will be considered by the CARC. See Article 3.3 for procedures.

3.2. Fees: All fees, deposits, and Homeowners Association (HOA) and Boat Slip Association (BSA) assessments must be current or paid prior to making any submittals for review by the CARC. Use the Fee Checklist on application forms to acknowledge the fees. Submit the required fees to the address noted on the form. Note the lot number on the check. Once payment of fees has been verified an email will be sent containing instructions for making the submittals required for architectural review.

The CANNONSGATE HOA reserves the right to revise the fee amounts at any time.

A. Architectural Review Fee for a New Residence: $1,500.00. This fee includes:

1. Three on-site reviews (inspections) during construction. One review (inspection) will be performed at Pre-Construction Site Staking, one at Dry-In, and one at Final Completion. Additional charges apply if the on-site reviews (inspections) require a follow up or re-inspections.
2. Up to two plan reviews: The initial Design Development review of a new residence and up to one subsequent review. All items included with the initial submittal, including accessory structures and pools, will be reviewed within this fee. The required Design Development (DD) Review will be considered the initial review requiring a fee. The optional Schematic Design (SD) review is not included in this fee but is available for a separate fee of $450.00
3. This fee is typically paid by the owner but may be paid by the contractor. There is no refund of this fee.

B. Architectural Review Fee for Plan Re-submittals: $750.00/ea.

1. This fee applies to re-submittals in excess of the two included in item “A” above. Owner will be required to pay this review fee prior to the CARC conducting this additional review. There is no refund of this fee. Any changes requested after plan approval are charged for as re-submittals.

C. Additional On-Site Review Fee: $375.00/ea.

1. This fee applies to on-site reviews, in excess of those included item “A” above, as required to evidence that corrective action has been taken, when a normal on-site review of staking, dry-in, or final completion is found to be non-compliant. The cost of this review will be deducted from the deposit paid by the contractor. There is no refund of this fee.

D. Architectural Review Fee for Pools and Accessory Structures – Considered a Major Project: $750.00.

1. Applies to review of pools, spas and major hardscape modifications that are not included with the initial submittal for a new residence. If these items are submitted after the Design Development review, this will be an additional review fee which will need to be paid by the owner prior to the review. There is no refund of this fee.

E. Fee for Special Services: $75.00 per half hour.

1. This rate will be charged for plan or on-site reviews not included above or for design consultations. There is no refund for this fee.

F. Minor Projects:
Part A Minor Project Application: $250.00
Part B Minor Project Application: No Fee Required

1. There is no refund for this fee.

G. Variances: $ 250.00 Fee – If variance requires more than two (2) emails and three (3) phone calls, fees for Special Services will apply.

H. Construction Deposit and Road Impact Fees: The Compliance Security Deposit also termed the Construction Deposit is $4,000.00 and must be paid by the general contractor from their account. This fee will be refunded, less any fines or other charges which accumulate during construction. The nonrefundable road impact fee is $1,000.00, must be paid by the contractor and is in addition to the construction deposit and all other fees.

1. The Construction Deposit is intended to protect the Homeowners Association from the cost of unnecessary expenses resulting from contractor negligence, failure to maintain a clean site or adjacent roads, and any violations of these Guidelines or community covenants.
2. The deposit, except for impact fee or where reduced by fines or penalties due to willful or negligent acts by the property owner or building contractor, is refundable as determined by the Cannonsgate HOA Architectural Review Committee (CARC) in its sole discretion. Deposits will be returned after issuance of approved, signed, final inspection form/Cannonsgate Architectural Review Committee (CARC).

I. Fines: Fines applicable to an owner will be assessed in accordance with the CCRs and Chapter 47F of the North Carolina Planned Community Act. Fines for Contractors who are not owners of the property under consideration shall be administered as follows:

• For allowing trash to accumulate on the site and or spill over onto neighboring properties, or for leaving mud on the street at the end of the week: $300.00 per day.
• For failure to maintain the silt fence allowing silt to discharge into the community storm water system, $200.00 per day, which may be increased if additional remediation is required. All silt fence installation shall be in accordance with Appendix C
• For working outside of permitted hours on any given day: $100 per hour or fraction thereof.
• For violating the Sunday or holiday working restrictions (Article 3.12): $500 per day
• For commencing any construction activities prior to the review and written approval of the Architectural Review Submittal by the CARC: $1,000.00. Additional fines of $100 per day can be assessed if construction continues without CARC approval.
• For other violations of the Guidelines not mentioned herein, fines will be levied at the actual cost of the corrective action plus any HOA expense.

J. Project Completion:

1. Contractors who do not complete the home within the maximum allowable time allowed by the CCRs and in accordance with Article 3.10 shall be fined $500 per month or any portion thereof until such time of compliant final inspection by the CARC. If the penalty exceeds the deposit, the excess shall be satisfied prior to issuance of any future project authorization for penalized builder. The fine is applicable for all work commenced after the date of this addendum. However, if an extension is needed the contractor may request up to 60 days providing milestones are identified to confirm progress toward completion.
2. Occupying home prior to issuance of ARC Final Approval (CO): A fine of $300/day.

3.3. Application for Review:

A. Plan review at Cannonsgate is an all-digital process. All items submitted to the ARC must be in digital form using .pdf file formats. No hard copies will be accepted.

B. Individuals submitting drawings for review are responsible for ensuring that they have permission to use the drawings and that they are not violating copyright laws.

C. A completed Application Form must be submitted by uploading the application and all required submittals to the CARC website, or as instructed by the CARC.

D. The CARC will retain documents only for its own use and will not return nor maintain any submitted information to the applicant.

E. The Design Review Process: (PLEASE READ CAREFULLY… as there are required materials which must be provided at specific times during the process). The process of review is intended to protect property owners and their investment as well as to secure the aesthetic quality of Cannonsgate at Bogue Sound. With that in mind, each property owner should:

1. Become familiar with the Covenants and Restrictions and these Guidelines (required): In some cases, the Covenants will contain pertinent information with respect to HOA and CARC administration of this program which are not restated within these pages.
2. Select the appropriate design consultants: Owners may contract with any architect or designer of their choosing. The CARC requires verification from any designer who plans to work in the community to ensure they are licensed by the State and Carteret County. This information should be noted on the Application for Review. All drawings and specifications shall contain Architect/Engineer or designer’s name, contact information and license number. Drawings will not be accepted without this information prominently placed on each drawing.
3. It is required that the property be surveyed by a surveyor licensed in North Carolina. The survey must have a title block to include the owner’s name, lot number, address, and phone number and the surveyor’s name, business address, phone and license number.
4. Prepare a Space Program for your home (optional): List all the spaces you wish to have within your home and provide this to your architect or designer. Your designer will organize these spaces into a plan called the Schematic. It will include floor and roof plans, elevations, and be placed on a Site Plan.
5. Submit your preliminary plan to the CARC for a Schematic Design review: This is an optional submittal, but highly recommended.
6. Determine how you will bid the work on your home or how you will administer construction (owner’s option): A licensed architect will typically provide services during the bid phase where he/she may help qualify contractors, and can also assist in performing site reviews during construction, check material lists, confirm the quality of the work and confirm fees earned by the contractor are in line with their payment requests. However, an owner may choose his/her own method of ensuring quality of construction and fair pricing as this is outside the scope of work of the CARC.
7. Select a qualified General Contractor: Owners may contract with any licensed contractor/builder of their choosing. However, it is a requirement that owner’s contract with builders who are licensed with the State of North Carolina Licensing Board for General Contractors and with Carteret County with their qualifying information noted on Cannonsgate Architectural Review Applications.
8. All construction must be managed by a licensed Contractor: All work on a site must be under the management of one licensed general contractor, including, all aspects of the home and including prime sub-contractors (contractors required to have separate licenses such as HVAC, plumbing, electrical), and including communications, landscape and irrigation. The one Contractor shall be held responsible for all work occurring on a lot until the Final On-Site Review is satisfactorily completed and deposits returned.

F. The three levels of CARC Application for Review are as outlined below. Check lists which must accompany the formal submittal to ensure all items required for review are included with the application forms at the end of this document.

1. The Schematic (SD) Review (Optional – but highly recommended)

a. Schematic: The Schematic Design submittal is the first submission to begin the review process. The intent of a Schematic Review is to provide the lot owner with an opinion from the ARC if their home will be generally acceptable under the Guidelines. This measure is to help provide owners with guidance early in the design process to minimize major changes after a full set of documents has been prepared.

b. Submit form titled Schematic Review Request in order to commence the review process. Include all required documents.

c. Items submitted should be in digital form using public domain software PDF only.

d. Allow up to fourteen calendar days for a response.

2. The Design Development (DD) Review (Required): This phase of the work by your architect or designer should include detailed information with respect to the materials of construction as well as provide more extensive details such as wall sections, bracket details, windowsills and the like. Following the ARC approval at this level, you should be able to obtain pricing for your home from a contractor. Final contract pricing should be based on full and complete drawings and specifications, which is the final phase of the review process.

a. Use form titled Application for DD/CD Review with DD Review Checked.

b. Complete all items on all checklists and submit for review.

3. The Construction Document (CD) Review (Required): The Final Review is the Construction Document review. Following receipt of the DD review comments from the ARC, the following shall be submitted, accounting for all comments from the ARC.

a. Use form titled Application for DD/CD Review, with CD Review checked.

b. Complete all items on all check lists, with revisions complying with CARC Review Comments. Special Note: Many owners are choosing to submit DD documents only and not have their designer provide complete CD drawings. If this is the case, owner should note by checking both DD and CD on the application form.

3.4 Reviews:

A. Submittals will be evaluated by the Architectural Review Committee and the owner will be provided with an Evaluation stating whether the project is:

• Need More Information – Submittal is not approved. Supply additional information as requested.

• “Revise & Resubmit” – The submittal is not approved. The Applicant must make modifications per the CARC review comments and resubmit for approval.

• “Approved” – The entire submittal is approved as submitted.

• “Approved With Conditions” – The submittal is approved with conditions. The Applicant must make minor modifications per the CARC review comments. The Applicant may be required to provide additional information prior to further approval. The CARC may provide a full disclosure of the non-compliant items but is not required to do so.

B. Notices: Registrants (owner’s representative) will be notified by automated notifications to their email of the status of approval. The CD approval will be effective for thirteen (13) months from the date of approval.

1. If construction has not substantially begun within the 13-month period, the approval will become void and the owner must make a new CD review request by providing all the support documents required by the original review. If a different edition of the Guidelines is then in force, the plans will require a rereview under the new Guidelines before construction will be approved to commence.
2. In the case of a review required under a different set of Guidelines, an additional design review fee will be assessed at one-half the amount of the original review fee.
   Approval by the ARC is in no way an assumption of liability or an endorsement by the CARC of the structural design or engineering of the dwelling, nor suitability of the home for any purpose, nor its adherence to applicable codes, nor its correct placement on a site, nor is approval given, expressed or implied, to use in any manner and/or damage any of the adjacent property or common areas incidental to the approved construction.
   Alterations and additions to buildings, landscaping, exterior lighting, fences, exterior paint, or addition of shrubs or trees, must be approved by the Architectural Review Committee, prior to execution of changes desired.

C. General Note on Timeliness of The Reviews: Owners should expect that each of the DD and CD reviews may take 30 calendar days on average. High quality custom designs prepared by architects and experienced home designers and complete submittals will expedite the process. Owners should carefully assess the capability of their designer to prepare the complete set of documents required during this review process. Incomplete submittals or poor design quality can delay the review substantially. Please ensure that ALL items called for in the Check Sheets are included with your submittals. The Cannonsgate Covenants allow up to 45 days for the ARC to review each “completed” submittals. Generally, the review process using the electronic submittals does not take this long.

3.5. Variances: Variances may be granted in some circumstances including, but not limited to, odd-shaped lots or parcels, topography, natural obstructions, hardship, or environmental considerations. All variance requests must be submitted in writing. The applicant must state the reason for the request and propose mitigation of the variance. The CARC shall have the power to grant a variance from strict compliance in such circumstances, so long as the variance does not result in a material violation of the Declaration or governmental regulations. No variance shall be effective unless in writing and signed by a representative of the CARC.

NOTE: The review and approval of plans and specifications shall not be a substitute for compliance with the permitting and approval requirements of Carteret County or other governmental authorities. It is the responsibility of Owner/Builder to obtain all necessary permits and approvals.

3.6 Implementation of Approved Plans: All work must conform to approved plans. If it is determined by the CARC or the Cannonsgate HOA that work completed or in progress on any site/parcel is not in compliance with these Guidelines or any approval issued by the CARC, the CARC shall notify the Owner and builder in writing of such noncompliance, specifying in reasonable detail the particulars of non-compliance, and shall require the Owner and/or builder to remedy the same. If the Owner and/or builder fails to remedy such noncompliance or fails to commence and continue diligently toward achieving compliance within the time period stated in the notice, then such noncompliance shall be in violation of the Declaration and these Guidelines.

3.7 Pre-Construction On-Site Review: Prior to commencement of clearing, grading or construction the property shall be staked showing the location of the home site and driveway; clearly mark all areas to be cleared, including flagging all trees (outside the building area) to be removed that are larger than six inches (6”) in diameter, as measured at the base, for review/approval by the Cannonsgate HOA.. Complete an On-Site Review Request form and upload it to the CARC website. The CARC will review the property within (14) fourteen business days of receiving the request. Note that the site staking review will only be approved when all elements are on site. Reference the review request form for specific requirements.

3.8 Dry-In On-Site Review: Once roofing, windows, and doors have been installed, the property owner shall complete an On-Site Review Request form for Dry-In Review and email it to the ARC consultants. The ARC will schedule the review as soon as practical. Construction is not permitted to continue without scheduling of the Dry-In Review.

3.9 Final On-Site Review: When all construction has been completed the property owner shall complete an On-Site Review Request form for Final Review and upload it to the ARC website. All work must be complete including the home, landscaping, driveways, and walks. Remove construction fencing, debris, dumpster, toilet facilities, signage, etc. before requesting Final Review.

A. Final Survey: A Final survey must be submitted along with the request for a Final On-site Review. The Final Survey shall be performed after construction is complete. It shall be prepared by a licensed surveyor, be wet sealed, and must show the following:

• The location of the home, driveway, walks and accessory structures and dimensioned relative to property lines, easements, rights-of-way, etc.

• The finished floor elevation of the first level of the home relative to mean sea level.
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• Variations, if any, with the CARC approved site plan.

• A table showing the total amount of permitted impervious area and the total actual impervious area. Impervious area includes the paved driveway and landscape walks extending over the property line to the street.

B. Notarized Certification/s must be submitted along with the request for a final on-site review.

1. Provide notarized documentation of type of roofing, doors and windows installed.
2. Provide notarized statement that home is constructed to match CARC approved elevations.

3.10 Time to Complete Construction:

A. On new homes, the applicant must commence construction within four months of the approval of the application by the CARC. If no maximum time period is specified in the approval or any other agreement, construction of a new residence shall be completed within thirteen months of CARC approval of the staking plan. The Applicant may request an extension of up to sixty days if requested not less than thirty days prior to the expiration of the maximum time period, which the CARC may approve or disapprove, in its sole discretion.

B. Modifications to existing homes must commence construction within four months of the approval of the application by the CARC. If no maximum time period is specified in the approval or any other agreement, construction of an addition shall be completed within four months of CARC approval of the staking plan. The Applicant may request an extension of up to two months if requested not less than thirty days prior to the expiration of the maximum time period, which the CARC may approve or disapprove, in its sole discretion.

C. If construction is to be halted for a period of (30) thirty days or longer, then written notice shall be given to the CARC with an explanation of the cause of the delay and the plans to remedy any problems. The CARC may then require certain additional measures to be taken.

D. If construction is not completed within the period allowed, the approval shall be deemed withdrawn, and the incomplete construction shall be deemed to be in violation of the Declarations and these Guidelines.

3.11 Change After Approval: All proposed changes to structures, including changes that affect the exterior of any building, colors, windows, doors, grading, paving, utilities, landscaping, or signage, made after the final approval of plans must be submitted to and approved in writing by the CARC prior to implementation. Close cooperation and coordination between the Applicant and the CARC will ensure that changes are approved in a timely manner. If Carteret County or any other authority having jurisdiction requires that changes be made to final construction plans previously approved by the CARC, the Applicant must notify the CARC of such changes and receive approval from the CARC prior to implementing such changes.

3.12 Hours permitted for Construction: Work may be performed within the community only between the hours of 7 AM and 7 PM Monday through Saturday from September 22 to April 30; between 7 AM and 8:30 PM Monday through Saturday between May 1 and September 21; 7 AM to 5 PM on Sunday and Holidays (Holidays shall include: New Year’s Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving, Christmas Day.) No work may be performed on the exterior of any home, material deliveries made, nor noise heard outside the dwelling on Sunday or on Holidays. Vehicles no larger than a ¾ ton pickup may be driven in the community on Sundays or Holidays.

3.13 Review of Modifications to Existing Dwellings (initial construction is complete):

A. The review of modifications to existing dwellings including modifications to the main residence or the addition or modification of other improvements on the subject property will require the submission of the applicable sections of Cannonsgate Architectural Review Submittals One through Three based on the nature of the modification. Only one submission of forms for a modification is required, different from two submissions (DD and CD) required for new construction. The review and approval of modifications shall take place within the same time periods as required for new construction. Modifications must be scheduled and completed in a time agreed upon by the CARC. The review fee for modifications and other improvements shall be as stated in Article 3.2.

B. Minor Projects: The ARC is required to perform reviews for all exterior modifications on each home site. A form is included to request a Minor Project Review in the forms area at the end of this document.

Part A Minor Project: A review fee as noted on the form is required for the following items.

(1) Children’s play equipment. To be approved it should not extend across side yard or rear yard setbacks, should be screened from neighboring property with shrubs and trees and anything above six feet in height finished in natural colors as opposed to primary colors.

(2) Garden walls composed of masonry matching the masonry of the home, installed in the rear or a side yard which is not street facing or facing a common area and is less than or equal to five feet tall. It must be installed with masonry or stone top cap and water proofing to prevent efflorescence.

(3) The addition of a patio or masonry fireplace to the rear of the home which is at grade level and does not extend across side yard or rear yard setbacks. Masonry must complement the masonry of the home and the fireplace may not be more than eight feet wide nor eight feet high.

(4) Landscape elements that are in addition to items in the initially approved landscape plan or are an enlargement or reduction of a previously approved landscape plan.

(5) Permanently installed basketball goals.

(6) Satellite dishes installed on poles. Units should not exceed eight feet in height and must be installed in side yards not facing the street or rear yards and must be fully screened with shrubs or trees. Satellite dishes must not extend across side yard or rear yard setbacks and

must not be installed on a roof visible from the front of the home or exposed on the roof visible from common areas or ponds.

(7) Any recreation equipment placed in the rear of the home providing it does not extend across side yard or year yard setbacks.

(8) Visually permeable fencing composed of black wrought iron or similar black aluminum rail and not taller than five feet in height.

(9) Vegetable (food product) gardens larger than 200 SF in area or placed in areas other than a rear yard.

(10) Yard ornaments visible from the front of the home or from a common area, lake or pond.

Part B Minor Projects: No application nor payment of fees are required for the following Minor Projects.

(1) Landscape elements added to a home which are replacing plants damaged or destroyed and which meet the requirements of the Guideline edition at the time of the new planting.

(2) Vegetable (food product) gardens placed in the rear yard of a home up to 200 SF in area.

(3) Expansion of an existing irrigation system or separating an irrigation system from the community water services by providing a separate service meter.

(4) Repainting of same color.

CAUTION -Any work requiring movement across a curb with equipment larger than a 2000 series John Deere tractor or truck larger than 3/4 ton must be submitted for a Major Project review.

3.14 [DELETED]

3.15 Licenses: Construction work conducted in Cannonsgate must take place under a North Carolina licensed builder or contractor with a limited, intermediate or unlimited license, even if the owner is the contractor or builder.