Prepared by and return to: Allison R. Lumbatis , Esq. Coulter & Sierra , LLC 22 Inverness Center Parkway , Suite 600 Birmingham , Alabama 35242 7056 .01 STATE OF ALABAMA ) CROSS REFERENCE: Document #: 2009 -1164858 COUNTY OF BALDWIN ) Document #: 2015-1524751 SECOND AMENDMENT TO THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR DUNMORE , A RESIDENTIAL SUBDIVISION THIS SECOND AMENDMENT TO THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR DUNMORE , A RESIDENTIAL SUBDIVISION (hereinafter referred to as “Amendment ”) is made this ___ day of ____________, 2025, by DUNMORE RESIDENTIAL HOMEOWNERS’ ASSOCIATION , INC., an Alabama nonprofit corporation (hereinafter referred to as “Association ”). W I T N E S S E T H WHEREAS , Hearthstone Multi -Asset Entity D, L.P., a California limited partnership , as Developer, executed that certain Declaration of Covenants, Conditions and Restrictions for Dunmore , a Residential Subdivision , which was recorded on February 27, 2009, as Document Number 2009-1164858, in the records of the Probate Office of Baldwin County, Alabama; as amended by that cert ain First Amendment to the Declaration of Covenants, Conditions and Restrictions for Dunmore, A Residential Subdivision, recorded on July 15, 2015, as Document Number 2015- 1524751, aforesaid records (hereinafter as supplemented and/or amended from time to time , collectively referred to as the “ Declaration ”); and WHEREAS , the Association is a nonprofit corporation organized under the Alabama Nonprofit Corporation Law to be the Association named in the Declaration to have the power and authority set forth therein; and WHEREAS , pursuant to Article X, Section 10.1 of the Declaration , following the expiration of the Developer Control Period, the Declaration may be amended upon the affirmative vote of the Owners who own not less than two-thirds (2/3) of the total Lots of the Property; and WHEREAS , Owners who own not less than two -thirds (2/3) of the total Lots of the Property now desire to amend the Declaration as set forth herein ; and WHEREAS , the Developer’s consent to this amendment is not required because the Developer Control Period has expired; and WHEREAS , attached hereto as Exhibit “A” and incorporated herein by reference are the sworn statements of the members of the Architectural Committee of the Association , which sworn statement s certify that the approval of this Amendment by the Owners was lawfully obtained, in accordance with Article X, Section 10.1 of the Declaration; and - 2 - WHEREAS , attached hereto as Exhibit “B” and incorporated herein by reference are the sworn statements of the President of the Association and the Secretary of the Association, which sworn statements certify that the consent of members was lawfully obtained; and WHEREAS , the foregoing Amendment does not materially and adversely affect the security title or interest of any mortgagee of a Lot; provided, however , in the event a court of competent jurisdiction shall determine that the foregoing Amendment does so, then this Amendment shall not be binding on the mortgagee so involved, unless it consents hereto; and if such consent is not forthcoming, then the provisions of the Declaration in effect prior to this Amendment shall control with respect to the affected mortgagee. NOW THEREFORE , the undersigned hereby adopt this Second Amen dment to the Declaration of Covenants, Conditions and Restrictions for Dunmore , a Residential Subdivision, hereby declaring that all the property now or hereafter subject to the Declaration shall be held , conveyed , encumbered , used, occupied and improved s ubject to the Declaration , amended as follows: 1. Article V, Section 5.4 of the Declaration , entitled “ Tenants ,” is hereby deleted in its entirety and replaced with a new Section 5.4, entitled “ Leasing ,” as follows: 5.4 Leasing. In order to protect the equity of the individual Owners within the community of Dunmore (“Community ”) and to carry out the purpose for which the Community was formed by preserving the character of the Community as a residential Community of Owner -occupied Lots, leasing of Lots shall be governed by the restrictions imposed by this Section. The Board of Directors shall have authority to make and enforce reasonable rules and regulations in order to enforce this Section, including the right to impose fines constituting a lien upon any Lot sold or leased as provided herein. Except as provided herein, leasing of Lots is prohibited. a) Definitions. i. “Authorized Corporate Occupant” means the Occupant designated by an Owner of a Lot who is a corporation, limited liability company, partnership, or trust or other legal entity not being a natural person. If the record title Owner of a Lot is a corporation, limited liability company, partnership, or trust or other legal entity not being a natural person, the Owner shall designate in writing to the Board the name(s) of the Authorized Corporate Occupant, who will occupy the Lot. The name of each Authorized Corporate Occupant shall be designated in writing to the Board and may not be changed more frequently than once every 12 months without the Board ’s written consent. A person ’s designation as an Authorized Corporate Occupant shall terminate automatically upon the termination of such person’ s relationship with the entity holding record title to the Lot . Occupancy of an entity -owned Lot by any person that does not qualify as an Authorized Corporate Occupant hereunder shall be unauthorized and shall be deemed to constitute leasing u nder this Section. ii. “Effective Date” means the date that this Amendment is recorded in - 3 - the records of the Probate Office of Baldwin County, Alabama. iii. “Leasing ” means the occupancy of a Lot by any person(s) other than: 1. the Lot Owner or a parent, grandpar ent, spouse, child, grandchild, or former spouse of an Owner, which relationship shall be demonstrated to the Board on request by providing a copy of a birth certificate or similar document satisfactory to the Board; 2. one or more wards if the Lot is owned by their legal guardian; 3. one or more beneficiaries of a trust if the Lot is owned in trust by the trustee; 4. an Au thorized Corporate Occupant; 5. a roommate of any of the above who also occupies the Lot as their primary residence; or 6. a person occupying the Lot pursuant to a Seller Leaseback, as defined below. A person occupying a Lot may only qualify to be an Authorized Corporate Occupant if no rent or consideration is paid or provided to the Lot Owner by or for the Occupant . Additionally, a Lot may be considered to be leased hereunder even if no rent is paid to the Lot, if the Occupant does not constitute one of the Occupant s exempted from leasing above. iv. “Seller Leaseback ” means the temporary lease (maximum of sixty days as specified herein) of an occupied Lot by the previous Owner immediately following the sale of the previous Owner ’s Lot to a purchaser, for the purpose of permitting the previous Owner or previous Occupant to continue occupying the Lot following the sale closing. The maximum lease term for a Seller Leaseback shall be sixty (60) days. (b) General Leasing Provisions. Except for roommates of an Owner as provided above, Lots may be leased only in their entire ty pursuant to a single lease. All leases shall be in writing and shall include any lease addendums that may be required by the Board in a form approved by the Board. There shall be no subleasing of Lots or assignment of leases without prior written Board approval. All leases must be for an initial minimum consecutive term of 6 months, excep t with written Board approval. Transient tenants or Occupants are not permitted in Lots . By way of example only, the immediately preceding standard shall include any occupancy under any Airbnb, time share, vacation rental, Vacation Rental By Owner ( “VRBO” ), Home Away, Craigslist or other similar arrangement whereby any person is granted, by Owner for compensation in any form, a right to enter and/or occupy a Lot for any period of - 4 - time shorter in duration than 6 months; the listing hereinabove shall not be considered exhaustive or exclusive with regard what constitutes leasing hereunder. Additionally, any advertisement and/or solicitation of a Lot as being available for short -term leasing is also prohibited, and the same shall constitute proof that a violation of this Section has occurred and/or is ongoing until the advertisement and/or solicitation is removed. Lastly, a person occupying a Lot only may qualify to be an Authorized Corporate Occupant if no rent or consideration is paid or provided to the Lot Owner by or for the Occupant . Within seven (7) days after executing a lease agreement, an Owner shall provide the Board with the following: (1) a copy of the le ase; (2) the names, phone numbers, email addresses, work locations and work phone numbers of all of the Occupant s of the Lot; (3) the Owner ’s Lot address, and the Owner’ s phone number, email address, work location, work phone number, and physical street address to be occupied by the Owner when the Lot is leased; (4) written and signed confirmation of the provision of all governing documents, including, but not limited to, the Declaration, By-Laws , Architectural Committee Rules and design guidelines, and all Association rules and regulations to the tenant and all Lot Occupant s; and (5) such other information as may be required by the Board. If any of the information regarding the Occupant required above, or other information regarding occupancy of the Lot, changes during the term of any leasing of the Lot, the Owner and Occupant shall update and notify the Board in writing of such changes within seven (7) days of the date of such change. If an Owner fails to provide the Association a copy of the lease as provided herein, or an Owner otherwise leases a Lot in violation of this Section 5.4, the Association may fine the Owner an initial fine of $500.00, plus increased fines for each subsequent violation and additional daily fines in an amount determined by the Board in its sole discretion for continued violation of these provisions. (c) Compliance and Enforcement by Association. Occupants of Lots shall control the conduct of their families and guests to assure c ompliance with the Declaration, By-Laws , and Association Rules and Regulations and shall indemnify and hold the Association harmless for any such person ’s failure to comply. Any violation of any provision of the Declaration, By-Laws , and Rules and Regulations by any Occupant of a Lot or person living with an Occupant , shall constitute a default under the lease and authorizes the Association to declare the lease in default for any such v iolation. The Association may bring an action against the Owner and/or Occupant (s) for damages and/or injunctive relief, or may impose fines and/or other sanctions under the Declaration, By-Laws , or Alabama law, including all remedies available to a landlord upon breach or default of a lease (including eviction of the Occupant (s)), for violations of the Declaration, By- Laws , or Association Rules and Regulations or the lease. Failure by the Association to enforce any of its rights shall not be deemed a waiver of the right to do so thereafter. The Owner delegates and assigns to the Association, at the Board’ s discretion, the power to evict the Occupant (s) on behalf of and for the benefit of the Owner. If the Association proceeds to evict the Occupant (s), any cost associated therewith, including all attorneys’ fees actually incurred and court costs, shall be specially assessed against Owner ’s Lot and shall be a personal obligation of the Owner, being deemed as an expense which benefits the leased Lot and Owner . If any Occupant , or any guest, invitee, licensee, or family member of the Occupant - 5 - violates the Declaration, By- Laws , and Association Rules and Regulations for which a fine is imposed, such fine may be assessed against the Occupant and/or Owner, as provided in the Declaration and By-Laws . When a Lot Owner who is leasing his or her Lot fails to pay any annual, special, or individual assessment or any other charge for a period of more than thirty (30) days after it is due and payable, then the delinquent Owner hereby consents to the assignment of any rent received from the lessee during the period of delinquency, and, upon request by the Board, lessee shall pay to the Association all unpaid annual, special and individual assessments and other charges payable during and prior to the term of the lease and any other period of occupancy by lessee. However, lessee need not make such payment s 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 l essor. If lessee fails to comply with the Board ’s request to pay assessments or other charges, lessee shall pay to the Association all amounts authorized under Article VI herein as if lessee were an Owner. 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. Any lease of a Lot shall be deemed to contain the foregoing provisions, whether or not expressly therein stated, and each Owner and each lessee, by occupancy of a Lot, covenants and agrees that any lease of a Lot shall contain the foregoing 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 on the Lot. 2. Article V, Section 5.4 of the Declaration is hereby amended by appending the following sentence to the end thereto: An Owner may only lease his or her Lot if the Owner has occupied the Lot as a resident for at least six (6) consecutive months prior to leasing. 3. Article VI, Section 6.3 of the Declaration, entitled “ Individual Assessment ,” is hereby deleted in its entirety and replaced with a new Section 6.3 as follows: Individual Assessment. The Board shall have the power to levy Individual Assessments as, in its discretion, it shall deem appropriate. Failure of the Board to exercise its authority under this section shall not be grounds for any action against the Association and shall not constitute a waiver of the Board ’s right to exercise its authority under this section in the future with respect to any expenses, including an expense for which the Board has not previously exercised its authority under this section. Fines levied pursuant to this Declaration, the costs of maintenance performed by the Association for which the Owner is responsible, and any expenses incurred by the Association in enforcing any of the provisions of this Declaration against any specific Owner or Occupant shall be - 6 - Individual Assessments. The Board of Directors may also specifically assess Owners for Association expenses as follows: (a) expenses of the Association which benefit less than all of the Lots may be specifically assessed equitably among all of the Lots which are benefited accor ding to the benefit received; and (b) expenses of the Association which benefit all Lots, but which do not provide an equal benefit to all Lots, may be assessed equitably among all Lots according to the benefit received. 4. Article VII I, Section 8.2 of the Declaration, entitled “Remedies for Default ,” is hereby amended by appending the following paragraphs to the end thereof: Each Owner and Occupant shall comply strictly with the Declaration, By-Laws, and rules and regulations (including, without limitation, use restrictions, policies, and architectural guidelines) as amended or modified from time to time, and with the covenants, conditions, easements and restrictions set forth in this Declaration, the recorded subdivision plat, and in the deed to such Owner ’s Lot. The Board may impose fines or other sanctions for violations of the foregoing, which shall constitute and Individual Assessment and shall be collected as provided herein for the collection of assessments. Failure to comply with this Declaration, the By-Laws, or the rules and regulations shall be grounds for an action to recover sums due for damages or injunctive relief or both, including, without limitation, all costs and reasonable attorney ’s fees actually incurred (including but not limited to all post -judgment costs and attorneys’ fees incurred) , maintainable by the Association or an aggrieved Owner. Failure by the Association or any Owner to enforce any of the foregoing shall in no event be deemed a waiver of the right to do so thereaft er. Prior to assessing any fines and/or sanctions in accordance herewith, the Board shall deliver written notice to the noncompliant Owner of the specific nature of the violation and the action necessary by the member to cure the violation. Unless an emergency situation exists, any Owner in receipt of such notice shall have ten (10) days thereafter or such longer time as the Board shall determine in its sole discretion, to cure the specified violation. The Owner may, within ten (10) days from the date of the notice, request a hearing before the Board regarding the fine and/or sanction imposed. After the expiration of the cure period described above, the Owner shall incur the specified fines and/or sanctions for each day that the violation has not been cured by the action described in the notice from the Board. Notwithstanding the foregoing per day limitation, each day that the applicable violation shall remain uncured shall constitute a separate violation. Any violation of the same kind occurring within a y ear of the last cure date will require no additional notice before additional fines and/or sanctions are imposed. In addition to any other remedies provided for herein, the Association or its duly authorized agents shall have the power to enter upon any Lot or any other portion of the Community to abate or remove any structure, thing or condition which violates this Declaration, the By-Laws, the rules and regulations or the use restrictions. Unless an emergency situation exists, the violating Owner shall be given ten (10) days written notice of the intent to exercise self -help. Notwithstanding the foregoing, if permitted by applicable law, illegally parked vehicles may be towed after giving any notice required by law. All costs of self -help, including, without limitation, reasonable attorney’ s fees actually incurred, shall be assessed a gainst the violating Owner as an Individual - 7 - Assessment. The Board of Directors may suspend access to amenities and/or the voting rights of an owner for any period during which any past due assessment against any Lot of the owner remains unpaid; and, for a reasonable period of time for an infraction of the Declaration, By-Laws, or rules and regulations. 5. Unless otherwise defined herein , the words used in this Amendment shall have the same meaning as set forth in the Declaration. 6. In the event of any conflict or inconsistency between the provisions of this Amendment and the terms of the Declaration, the terms of this Amendment shall control. 7. This Amendment shall be effective only upon being recorded in the records of the Probate Office of Baldwin County , Alabama and shall be enforceable against current Owners of Lots in the Community. 8. If any provision of this Amendment or the application thereof to any person, entity, or circumstance is held invalid or unenforceable for any reason, the invalidity or unenforceability shall not affect the other provisions or any other application of this Amendme nt which can be given effect without the invalid or unenforceable provisions or application. 9. Except as herein modified, the Declaration shall remain in full force and effect. - 8 - IN WITNESS WHEREOF , the Board of Directors has caused this Second Amendment to the Declaration of Covenants, Conditions and Restrictions for Dunmore , a Residential Subdivision, to be executed under seal the day and year first above written. DUNMORE RESIDENTIAL HOMEOWNERS’ ASSOCIATION, INC., an Alabama nonprofit corporation By: ________________________ Print Name: ________________________ President By: ________________________ Print Name: ________________________ Secretary STATE OF ALABAMA ) COUNTY OF _________________ ) I, ______________________, a Notary Public, in and for said County in said State , hereby certify that ______________________, whose name as President of Dunmore Residential Homeowners’ Association , Inc., a nonprofit corporation, is signed to the foregoing and who is known to me, acknowledged before me on this day that, being informed of the contents of the foregoing, s/he, as such officer and with full authority, executed the same voluntarily for and as the act of said corporation. Given under m y hand and seal this the _____ day of _____________, 2025. _____________________________ NOTARY PUBLIC My Commission expires:_________ STATE OF ALABAMA ) COUNTY OF _________________ ) I, ______________________, a Notary Public, in and for said County in said State, hereby certify that ______________________, whose name as Secretary of Dunmore Residential Homeowners’ Association , Inc., a nonprofit corporation, is signed to the foregoing and who is known to me, acknowledged before me on this day that, being informed of the contents of the foregoing, s/he, as such officer and with full authority, executed the same voluntarily for and as the act of said corporation. Given under my hand and seal this the _____ day of _____________, 2025. _____________________________ NOTARY PUBLIC My Commission expires:_________ EXHIBIT “A” Sworn Statement of the Members of the Architectural Committee of Dunmore Residential Homeowners’ Association , Inc. STATE OF ALABAMA COUNTY OF BALDWIN Re: Dunmore Residential Homeowners’ Association , Inc. Personally appeared before me, the undersigned deponent s who, being duly sworn, deposed and said on oath that: 1. Deponent s are the members of the Architectural Committee of Dunmore Residential Homeowners’ Association , Inc. 2. Deponent s are duly qualified and authorized to make this Affidavit and know the facts contained herein of their own personal knowledge. 3. The foregoing Second Amendment to the Declaration of Covenants, Conditions and Restrictions for Dunmore , a Residential Subdivision., was approved by Owners who own not less than two-thirds (2/3) of the total Lots of the Property at a duly called meeting thereof held in accordance with the Declaration and By-Laws of Dunmore Residential Homeowners’ Association , Inc. 4. Deponent s make this Affidavit pursuant to Code of Alabama Section 35-4- 69 and Article X, Section 10.1 of the Declaration . This the _____ day of ________________, 2025. Sworn to and subscribed before me Signed: ____________________________ this ____ day of ___________, 2025: ____________________________ Print Name: ____________________________ Notary Public [AFFIX NOTARY SEAL] Sworn to and subscribed before me Signed: ____________________________ this ____ day of ___________, 2025: ____________________________ Print Name: ____________________________ Notary Public [AFF IX NOTARY SEAL] [Signatures continue on following page ] Sworn to and subscribed before me Signed: ____________________________ this ____ day of ___________, 2025: ____________________________ Print Name: ____________________________ Notary Public [AFFIX NOTARY SEAL] Sworn to and subscribed before me Signed: ____________________________ this ____ day of ___________, 2025: ____________________________ Print Name: ____________________________ Notary Public [AFFIX NOTARY SEAL] Sworn to and subscribed before me Signed: ____________________________ this ____ day of ___________, 2025: ____________________________ Print Name: ____________________________ Notary Public [AFFIX NOTARY SEAL] EXHIBIT “B” Sworn Statement of the President and the Secretary of Dunmore Residential Homeowners’ Association, Inc. STATE OF ALABAMA COUNTY OF BALDWIN Re: Dunmore Residential Homeowners’ Association, Inc. Personally appeared before me, the undersigned deponents who, being duly sworn, deposed and said on oath that: 1. Deponents are the respective President and Secretary of Dunmore Residential Homeowners’ Association , Inc. 2. Deponents are duly qualified and authorized to make this Affidavit and know the facts contained herein of their own personal knowledge. 3. The foregoing Second Amendment to the Declaration of Covenants, Conditions and Restrictions for Dunmore, a Residential Subdivision., was approved by Owners who own not less than two-thirds (2/3) of the total Lots of the Property at a duly called meeting thereof held in accordance with the Declaration and By -Laws of Dunmore Residential Homeowners’ Association, Inc. 4. Deponents make this Affidavit pursuant to Code of Alabama Secti on 35-4- 69 and Article X, Section 10.1 of the Declaration . This the _____ day of ________________, 2025. Sworn to and subscribed before me Signed: ____________________________ this ____ day of ___________, 2025: ____________________________ Print Name: ____________________________ Notary Public President of the Association [AFFIX NOTARY SEAL] Sworn to and subscribed before me Signed: ____________________________ this ____ day of ___________, 2025: ____________________________ Print Name: ____________________________ Notary Public Secretary of the Association [AFFIX NOTARY SEAL]