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:

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.

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.