COVENANT FOR MAINTENANCE ASSESSMENTS
Section 1. Creation of the Lien and Personal Obligation of Assessments: Except as provided in Sections 10 and 11 of this Article, each owner of any Lot or Unit by acceptance of a deed thereof, whether or not It shall be so expressed in any such deed or other conveyance, is deemed to covenant and agree to pay to the Association:
- Annual assessments or charges, and
- Special assessments for capital improvements, such assessments to be fixed, established, and collected from time to time as hereinafter provided. The annual and special assessments, together with such interest thereon and costs of collection thereof, as hereinafter provided, shall be a charge on the land and shall be a continuing lien upon the property against which each such assessment is made. Each such assessment, together with such Interest, costs and reasonable attorney's fees shall also be the personal obligation of the person who was the Owner of the property at the time when the assessment fell due. The personal obligation shall not pass to his successors in title unless expressly assumed by them. This obligation to pay assessments shall be a covenant running with the land on all parcels of property deeded to owners.
Section 2. Purpose of Assessments: The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety and welfare of the residents in the Properties and for the improvement and maintenance of the Common Area, and of the homes situated upon the Properties.
Section 3. Basis and Maximum of Annual assessments: Until January 1 of the year immediately following the conveyance of the Common Area in each individual Division, the maximum monthly assessment shall be: (1) Seven and 50/100 ($7.50). Dollars per Lot or Unit having been recorded to the Declarant. All Lots or Units sold after the conveyance of the Common Area will be prorated to Owner and Declarant based on close of escrow date.
- From and after January 1 of the year immediately following the conveyance of the first Lot or Unit to an Owner, the maximum annual assessment may be increased above that established by the Consumer Price index formula by a vote of the members for the next succeeding one year and at the end of each such period of one year, for each succeeding period of one year, provided that any such change shall have the assent of two-thirds (2/3) of the votes of the members who are voting in person or by proxy, at a meeting duly called for this purpose, written notice of which shall be sent to all members not less than 30 days nor more than 60 days in advance of the meeting setting forth the purpose of the meeting. The limitations hereof shall not apply to any change in the maximum and basis of the assessments undertaken as an incident to a merger or consolidation in which the Association is authorized to participate under its Articles of Incorporation.
- After consideration of current maintenance costs and future needs of the Association, the Board of Trustees may fix the annual assessment at an amount not in excess of the maximum.
Section 4. Special Assessments for Capital Improvements: in addition to the annual assessments authorized above, the Association may levy in any assessment year, a special assessment applicable to that year only, for the purpose of defraying, in whole or in part, the costs of any construction or re-construction, unexpected repair or replacement of a described capital Improvement upon the Common Area, including the necessary fixtures and personal property related thereto, provided that any such assessment shall have the assent of two-thirds (2/3) of the votes of members who are voting In person or by proxy at a meeting duly called for this purpose, written notice of which shall be sent to all members no less than 30 days nor more than 60 days in advance of the meeting setting forth the purpose of the meeting.
Section 5. Uniform Rate of Assessment: Both annual and special assessments must be fixed at a uniform rate for all Lots or Units, depending upon the type or nature of the particular Lot or Unit so as to Insure uniformity within types or classes and may be collected on a monthly basis.
Section 6. Quorum for Any Action Authorized Under Sections 3 and 4: At the first meeting called, as provided in Sections 3 and 4 hereof, the presence at the meeting of members or of proxies entitled to cast sixty percent (60%) of all the votes of the membership shall constitute a quorum. If the required quorum is not forthcoming at any meeting, another meeting may be called, subject to the notice requirement set forth in Sections 3 and 4, and the required quorum at any such subsequent meeting shall be one-half (1/2) of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting.
Section 7. Date of Commencement of Annual Assessments -- Due Dates: The annual assessments provided for herein shall commence as to all Lots or Units on the first day of the month following the conveyance of the Common. Area. The first annual assessment shall be adjusted according to the number of months remaining In the calendar year. The Board of Trustees shall fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every Owner subject thereto. The due dates shall be established by the Board of Trustees. The Association shall upon demand at any time furnish a certificate in writing signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid. A reasonable charge may be made by the Board for the issuance of these certificates. Such certificate shall be conclusive evidence of payment of any assessment therein stated to have been paid.
Section 8. Effect of Nonpayment of Assessments--Remedies of the Association: Any assessment which is not paid when due shall be delinquent. If the assessment is not paid within thirty (30) days after the due date, the assessment shall bear interest from the date of delinquency at the then current FHA interest rate, and the Association may bring an action at law against the Owner personally obligated to pay the same, or foreclose the Lien against the property, and interest, costs and reasonable attorney's fees of any such action shall be added to the amount of the said assessment. No owner may waive or otherwise escape liability for the assessment provided for herein by non-use of the Common Area or abandonment of his Lot or Unit.
Section 9. Subordination of the Lien to Mortgages: The lien of the assessments provided for herein shall be subordinate to the lien of any first mortgage. Sale or transfer of Lot or Unit shall not affect the assessment lien. However, the sale or transfer of any Lot or Unit which is subject to any mortgage, pursuant to a decree of foreclosure under such mortgage or any proceeding in lieu of foreclosure thereof, shall extinguish the lien of such assessments as to payments thereof which became due prior to such sale or transfer. No sale or transfer shall relieve such Lot or Unit from liability for any assessments thereafter becoming due or from the lien thereof.
Section 10. Exempt Property: The following property subject to this Declaration shall be exempt from the assessments created herein:
(a) All properties dedicated to and accepted by a local public authority;
(b) The Common Area;
(c) Prior to the initial conveyance to a purchaser, a mortgagee who acquires by foreclosure or procedure in lieu thereof any of the following lots:
DIVISION 2 2, 3, 5, 11, 12, 13, 15, 22, 24, 25, 26, 27, 29, 31, 32, 35, 36, 38, 39, 41, 42, 43, 44, 49, 50, 51, 53, 54, 55, 60, 61, 62, 63, 64, 66, 67
DIVISION 3a 71, 72, 79, 80 and 81
or a mortgagee who acquires by foreclosure or procedure in lieu thereof, any of the following dwelling units:
DIVISION 1 -- 17, 31, 33, 35, 43, 47, 51, 52, 63, 64, 80, 86, 93, 104, 115, 120;
DIVISION 3a -- 73, 74, 75, 76, 77 and 78;
the mortgagee shall not be obligated to pay assessments on such Lots or dwelling units so long as such Lots or Units remain unoccupied.
Section 11. Partial Exemption: The Declarant, its successors or assigns, except a. mortgagee as provided in Section 10(c) above, shall pay assessments for each Lot or unoccupied Unit which is equal to 25 percent (25%) of the assessments provided for in this Article.