Creation of the Lien and Personal Obligation of Assessments. Declarant, for each Unit owned by it within the Property, hereby covenants, and each Unit Owner of any Unit by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association (1) annual Assessments for Common Expenses, (2) Special Assessments and (3) Limited Common Assessments; such Assessments to be established and collected as hereinafter provided. The obligation of Builder to pay Assessments for any Unit owned by Builder shall be subject to the provisions of Section 8.4 below. Each such Assessment, together with interest, costs and reasonable attorney’s fees, shall be the personal obligation of the person who was the Unit Owner of such Lots at the time when the Assessment fell due. Subject to provisions of this Declaration protecting first Permitted Mortgagees, the personal obligation for delinquent Assessments shall pass to the successors-in-title of such Unit Owner. The Executive Board shall establish one (1) or more separate accounts into which shall be deposited all Assessments paid to the Association, and from which disbursements shall be made, as provided herein, in the performance of functions by the Association under the provisions of this Declaration.
Purpose of Assessments. The Assessments levied by the Association shall be used exclusively to promote the common health, safety, benefit, and welfare of the Unit Owners and for the improvement and maintenance of the Common Facilities, Limited Common Facilities and Controlled Facilities.
Damage to Common Facilities by Unit Owners. Any maintenance, repairs or replacements within the Common Facilities arising out of or caused by the willful or negligent act or omission of the Unit Owner, or such Unit Owner’s family, guests or invitees, shall be done at said Unit Owner’s expense or a Limited Common Assessment therefore shall be made against such Unit Owner’s Lot. In the event the damage is covered by insurance maintained by the Association, the Unit Owner shall be responsible for any deductible.
Basis of Assessment. The Executive Board shall periodically (and in no event less than annually), determine the estimated Common Expenses for the ensuing period (of not more than one year) including any reserves it deems advisable, and the Common Expenses incurred and the assessments and other receipts, if any, received during the prior period. Promptly following each determination of the Common Expenses theretofore incurred (and not theretofore assessed) and of budgeted estimated future Common Expenses, the Executive Board shall assess and collect from each Unit Owner (including Builder with respect to any Unit owned by Builder on the assessment date for which a certificate of occupancy has been issued by Township) and each such Unit Owner agrees to pay the Association a share of such incurred and estimated Common Expenses as set forth in Section 8.10 of this Article 8.
Monthly Payments. All Common Expense Assessments made in order to meet the requirements of the Association’s annual budget shall commence and be due and payable as of the date of purchase by the Unit Owner on the Unit. The pro-rata portion of the monthly Assessment for the current month may be collected by the Association at settlement and the Association may also collect in advance a full month’s Assessment for the next month following settlement.
Surplus. Any amounts accumulated in excess of the amounts required for actual Common Expenses and reserves for future capital expenses may, at the discretion of the Executive Board, be credited to each Unit Owner in accordance with its proportionate Common Expense liability, said credits to be applied to the next monthly Assessment of general Common Expenses due from Unit Owners under the current fiscal year’s budget and thereafter until exhausted or may be credited against the following year’s Assessment. The Executive Board shall determine the application of such excess funds.
Capital Expense. The Association shall establish an adequate capital expense fund for major repair and replacement of those Common Facilities and Controlled Facilities which are anticipated to require replacement, repair or major repair on a periodic basis. The capital expense fund may be funded by monthly payments as a part of Common Expenses.
Special Assessments. If the annual budget proves inadequate for any reason, including nonpayment of any Unit Owner’s Assessments, or any nonrecurring Common Expense or any Common Expense not set forth in the annual budget as adopted, the Executive Board may at any time levy a further Special Assessment, which shall be assessed to the Unit Owners in accordance with Section 8.10. Such Special Assessment shall be payable in such monthly installments as the Executive Board may determine. The Executive Board shall serve notice of such Special Assessment on all Unit Owners by a statement in writing giving the amount and reasons therefore, and such Special Assessment shall become effective and shall be payable at such time or times as determined by the Executive Board.
Failure to Fix New Assessments. If the Executive Board shall fail to fix new Assessments for Common Expenses for the subsequent fiscal year before the expiration of any fiscal year, the Unit Owners shall continue to pay the same sums they were paying for such Assessments during the fiscal year just ended and such sum shall be deemed to be the new Assessments for the succeeding fiscal year. If the Executive Board shall change the Assessment at a later date, such new Assessment shall be treated as if it were a Special Assessment under Section 8.8 hereof.
Rate of Assessment. Assessments provided for shall be assessed against Units equally. The share of each Unit shall be determined by taking the total amount of the Common Expenses and multiplying by a fraction the numerator of which is the number one and the denominator of which is the total number of Units subject to this Declaration. Until such time as the denominator is 90% of the Units projected for the Property, it shall be assumed that the denominator is 90% of the units projected for the Property and the Declarant shall pay any shortfall between the actual expenses of the Association and the Assessments collected from Unit Owners other than the Declarant.
Initiation Fee. Every Unit Owner shall, at the time of such Unit Owner’s purchase of the Unit from the Builder, pay to the Declarant the sum of Seven Hundred Fifty Dollars ($750) as an initiation fee. Such sums as collected shall be applied by the Association as determined by the Executive Board. The purchase of Lots by the Builder from the Declarant shall not require the payment of an initiation fee. Upon any resale of a Unit and purchase by a subsequent Unit Owner, the purchasing Unit Owner shall pay the Association a capital improvement fee as then established by the Association. Such fee shall not exceed the annual Assessment for Common Expenses charged to such Unit during the most recently completed fiscal year of the Association.
The Association will contribute Two Hundred Fifty Dollars ($250) of the funds which it collects as an initiation fee to the private conservation organization which owns and operates the preserved open space area immediately adjacent to the Property to assist in defraying the cost of maintaining and operating such preserved open space area. Section 8.12 Nonpayment of Assessments. Any installment of an Assessment, a Special Assessment or Limited Common Assessment not paid when due shall be subject to late fees and payment of interest as determined by the Executive Board.
No Waiver of Assessments. No Unit Owner may be exempt from personal liability for Assessments duly levied by the Association, nor release the Unit from the liens and charges hereof, by waiver of use and enjoyment of the Common Facilities or by abandonment of a Unit.
Liability of Purchaser of Unit for Unpaid Assessments. Subject to the provisions of Section 5407 of the Act, upon the voluntary sale, conveyance or any other voluntary transfer of a Unit or any interest therein, the grantee thereof shall be jointly and severally liable with the grantor thereof for all unpaid assessments for Common Expenses which are a charge against the Unit as of the date of conveyance or transfer, but such joint and several liability shall be without prejudice to such grantee’s right to recover from such grantor the amount of any such unpaid assessments which such grantee may have paid, and until any such assessments are paid, they shall continue to be a lien against the Unit which may be enforced in the manner set forth in Section 5315 of the Act. Any unpaid Assessments which cannot be promptly collected from a former Unit Owner may be reassessed by the Executive Board as a Common Expense to be collected from all of the Unit Owners including, by way of illustration and not limitation, a purchaser who acquired title at a sheriff sale, and such purchaser, successors and assigns to the extent Assessments are given priority in accordance with the Act; otherwise, no Permitted Mortgagee or Purchaser through a Permitted Mortgagee shall be liable for the collection of unpaid Assessments.
Unpaid Assessments upon Execution Sale Against a Unit. Any unpaid Assessments which cannot be promptly collected from a former Unit Owner may be reassessed by the Executive Board as a Common Expense to be collect from the Unit Owners, including (by way of illustration and not limitation), the purchaser who acquired title at a sheriff’s sale, and such purchaser’s successors and assigns to the extent Assessments are given priority in accordance with the Act; otherwise, no Permitted Mortgagee or purchaser through a Permitted Mortgagee shall be liable for the collection of unpaid Assessments.
Fees and Expenses. All expenses of the Executive Board in connection with any actions or proceedings, including court costs and attorney’s fees and other fees and expenses and all damages, liquidated or otherwise, asserted by the Association in collecting Assessments, Special Assessments or Limited Common Assessments shall be added to and deemed a Limited Common Assessment and the Association shall have a lien for all of the same, upon the defaulting Unit. Any and all rights and remedies shall be exercised any time and from time to time, cumulatively or otherwise. The Association shall have the right to exercise any and all rights and remedies at any time and from time to time, cumulatively or otherwise.
Utility Charges. All utilities provided to any Units shall be separately metered and will be billed directly to Unit Owners and will be each Unit Owner’s sole obligation to pay. Unit Owners shall be responsible for service charges covering any costs of billing incurred by the Association.