ARTICLE VI
ASSESSMENTS
6.1. The Declarant, for each Lot owned within the Project, hereby
covenants, and each Owner of a Lot by acceptance of a grant deed therefor, whether or
not it shall be so expressed therein is deemed to covenant and agree to pay to the
Association: (i) regular assessments or charges, and (ii) special assessments, such
assessments to be established and collected as so directed by the Board. The regular and
special assessments, together with interest, costs, and reasonable attorney's fees, shall
also be the personal obligation of the person(s) who was the Owner of such Lot at the time
when the assessment fell due. The personal obligation for delinquent assessments shall
not pass to an Owner's successors in interest unless expressly assumed by them.
6.2. The regular assessments levied by the Association through the Board
shall be used exclusively to promote the health, safety, and welfare of the residents in the
Project.
6.3. Both regular and special assessments shall be fixed at a uniform rate
for all Lots and shall be collected on a monthly basis or as determined by the Board, but
not more frequently than monthly.
6.4. The Board shall abide by the hereinafter provisions for establishing
the maximum regular assessments.
6.4.1. Until January 1 of the year immediately following the
conveyance of the first Lot to an Owner, the maximum regular assessment shall be as
provided for in the budget.
6.4.2. From and after January 1 of the year immediately following
the conveyance of the first Lot to an Owner, the maximum regular assessment may be
increased effective January 1 of each year by the Board without a vote of the
Membership, provided that any such increase shall not be more than ten percent (10%) of
the previous year's assessment. Such regular assessment shall continue in effect for the
following twelve (12) calendar months, which period shall be deemed to be the assessment
period.
6.4.3. From and after January 1 of the year immediately following
the conveyance of the first Lot to an Owner, the maximum regular assessment may be
increased by the Board in an amount greater than that provided for in Paragraph 6.4.2.
for the next succeeding twelve (12) months and at the end of each such period for each
succeeding period of twelve (12) months, provided that any such change shall be approved
by the vote or written consent of at least a majority of the voting power of the Members,
other than the Declarant. The limitations hereof shall not apply to any change in the
maximum and basis or consolidation in which the Association is authorized to participate.
6.4.4. After consideration of current maintenance costs and future
needs of the Association, the Board may fix the regular assessments at a lesser amount
than provided for above.
6.5. In any fiscal year, the Board may not, without the vote or written
consent of a majority of the voting power of the Association residing in Members other
than the Declarant, levy special assessments for the purpose of defraying, in whole or in
part, the cost of any construction, reconstruction, repair or replacement of a capital
improvement, including fixtures and personal property related thereto, which in the
aggregate exceeds five percent (596) of the budgeted gross expenses of the Association for
that fiscal year.
6.6. The above provisions with respect to special assessments do not apply
in the case where such special assessment is a remedy utilized by the Board to reimburse
the Association for costs incurred in bringing the Member and his Lot into compliance
with provisions of this Declaration and/or Bylaws.
6.7. Any action authorized under Paragraphs 6.4.3. and 6.5. shall be taken
at a meeting duly called for that purpose, written notice of which shall be sent to all
Members not less than thirty (30) days nor more than sixty (60) days in advance of the
meeting. If the proposed action is favored by a majority of the votes cast at such
meeting, but such vote is less than the requisite percent for passage, Members who were
not present in person or by proxy may give their assent in writing, provided the same is
obtained by the Board not later than thirty (30) days from the date of such meeting.
6.8. The regular assessments provided for herein shall commence as to all
Lots covered by this Declaration on the first day of the month following the conveyance
of the first Lot to an individual O The first regular assessment shall be adjusted
according to the number of months remaining in the calendar year. The Board shall fix
the amount of the regular assessment against each Lot at least thirty (30) days in advance
of each assessment period.Written notice of the regular assessments shall be sent to the
Owner of each Lot within the Project. The due dates for assessments shall be established
by the Board of Directors. The Association shall, upon demand, for a reasonable charge,
furnish a certificate signed by an officer of the Association setting forth whether the
assessments on a specified Lot have been paid.
6.9. The obligation of Lot Owners in Phases II and III to pay assessments
to the Association and the right of such Lot Owners to exercise voting rights in the
Association shall not commence until the first day of the month following the close of the
first sale of a Lot by Declarant in that particular phase.
6.10. Any assessment provided for in this Declaration, which is not paid
when due, shall be delinquent. With respect to each assessment not paid within fifteen
(15) days after its due date the Board may, at its election, require the Owner to pay a
"late charge" in a sum to be determined b the Board, but not to exceed $5.00 per each
delinquent assessment. If any such assessment is not paid within thirty (30) days after the
delinquency date, the assessment, shall bear interest from the date of delinquency at the
then legal rate'( and the Association may bring an action at law against the Owner
personally obligated to pay same. Each Owner vests in the Association or its assigns, the
right and power to bring all actions at law against such Owner or other Owners for the
collection of such delinquent assessments. In lieu of bringing an action at law to collect
delinquent assessments, the Association may submit the matter to arbitration pursuant to
the Rules of the American Arbitration Association. The decision of the arbitrator on such
delinquent assessment shall be binding upon the Association and the delinquent Owner and
may be enforced in any court of competent jurisdiction. The fee to initiate such
arbitration shall be paid by the Association and shall be recoverable as part of the
arbitration award, in addition to the late charges and interest on the delinquent
assessment as provided above.