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MASTER DECLATION OF COVENANTS,
CONDITIONS AND RESTRICTIONS
FOR
GRAND HAVEN
ARTICLE VI – ASSOCITION COVENANTS FOR MAINTENANCE ASSESSMENTS
Section 6.1 – Creation of the Lien and Personal Obligation of the Assessments. Except as provided in Section 6.8 hereof, the Developer for each Lot owned by it within the Properties hereby covenants and agrees, and each Owner of any Lot by acceptance of a deed therefore, whether or not it shall be so expressed in any such deed or other conveyance, shall be deemed to covenant and agree, to pay to the Association annual assessments or charges for the maintenance, operation, management and insurance of the Common Properties and other items described herein as Common Properties, including such reasonable reserves as the Association may deem necessary, and special assessments as provided in Section 6.3 hereof, such assessments to be fixed, established and collected from time to time as hereinafter provided. The annual and special assessments, together with late charges, interest and costs of collection thereof as hereinafter provided, shall be a charge on the land and shall be a continuing lien upon the Lot against which each such assessment is made. Ease such assessment, together with late charges, interest and costs of collection thereof as hereinafter provided, shall also be the personal obligation of all Owner(s) of such Lot from time to time. All assessments, both regular and special, shall be imposed against all Lots within the Properties and those that may in the future be subject to liens of the Association (except as provided herein with respect to charges or assessments which are made against one or more Lots to the exclusion of others).
Determining Amount of Assessment: The initial assessment amount for Lots within each individual neighborhood within Grand Haven shall be established by the Developer and set forth in a Supplemental Declaration recorded by the Developer with respect to each such neighborhood. The assessment amount for each Lot with within any particular neighborhood within Grand Haven shall be uniform but assessment amounts may vary among the neighborhoods, as determined by the Developer. Each year, the Board of Director’s shall establish an annual budget (the “Budget”) for the Association. Based upon each year’s Budget, the Board of Directors may adjust the assessment amount applicable to each neighborhood within Grand Haven in order to meet the operating needs of the Association and to undertake its duties and obligations as set forth in this Declaration. Any adjustment to the assessment amounts applicable to Lots within the various neighborhoods within Grand Haven shall be made on a prorate basis with the same percentage adjustment being applied to all neighborhoods. Special assessments, as hereinafter provided, shall be apportioned among the Lots within Grand Haven on a proportionate basis based upon the same percentage which the amount of the annual assessment attributable to each Lot bears to the total annual assessments attributable to all Contributing Lots within Grand Haven.
Start-Up Assessments. There shall be a one-time start-up assessment payable to the Association at the time a Lot is conveyed to its initial owner. Each subsequent Lot Owner may reimburse the previous owner the start-up assessment that was paid at the time of the initial lot acquisition. A Lot acquired by a builder from the Developer shall be subject to the start-up assessment at that time of acquisition. The amount of the start-up assessment applicable to Lots within each neighborhood within Grand Haven shall be established by the Developer and set forth in a Supplemental Declaration recorded by the developer with respect to each such neighborhood. The start-up assessment for each Lot within any particular neighborhood within Grand Haven shall be uniform but the amount of the start-up assessment may vary among the various neighborhoods, as determined by the Developer.
Section 6.2 – Purpose of Assessments. The assessments levied by the Association shall be used exclusively for maintenance, operation, management and insurance of the Common Properties as provided in Articles IV and V hereof, and to promote the health, safety, welfare and recreational opportunities of the Members of the Association and their families residing with them (if applicable) and their guests and tenants.
Section 6.3 – Capital Improvements. Funds in excess of Twenty five Thousand Dollars ($25,000.00) in any one (1) case which are necessary for capital improvements or other extraordinary expenses relating to the Common Properties or the operation of the Association and which have not previously been collected as reserves or are otherwise available to the Association may be levied as special assessments by the Association upon approval by a majority of the Board of Directors of the Association and upon approval of two-thirds (2/4) favorable vote of the Members present and voting at a meeting or by ballot as may be provided by the Bylaws of the Association, against Lots in the manner specified in Section 6.1 hereof. Special assessments for capital improvements to the Limited Common Properties which have not previously been collected as reserves or are otherwise available to the Association may be levied as special assessments against those Lots to which such Limited Common Properties are appurtenant upon approval by a majority of the Board of Directors and upon approval of two-thirds (2/3) favorable vote of the Owners of those Lots affected by such special assessment.
Section 6.4 – Date of Commencement of Annual Assessments: Due Dates. The annual Lot assessments provided for in this Article VI shall commence on the day each Lot has been conveyed by Developer. On such commencement date, each Lot shall become a “Contributing Lot”.
The annual assessments shall be payable in monthly installments, or in annual or quarter-annual installments if so determined by the Board of Directors of the Association. The assessment amount may be changed at any time by said Board from that originally stipulated or from any other assessment that is in the future adopted. The original assessment shall be for the calendar year, but the amount of assessment to be levied during any period shorter than a full calendar year shall be in proportion to the number of days remaining in such calendar year.
The due date of any special assessment under Section 6.3 hereof shall be fixed in the Board resolution authorizing such assessment.
Section 6.5 – Maximum Annual Assessment. Until January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment for all Lots within any particular neighborhood in Grand Haven shall be the amount established for such neighborhood by the Developer in a recorded Supplemental Declaration.
(a) From and after January 1 of the year immediately following the conveyance of the first Lot to an Owner, the maximum annual assessment attributable to Lots within any neighborhood within Grand Haven may be increased each year not more than fifteen percent (15%) above the maximum assessment for the previous year without a vote of two-thirds (2/3) of each class of members who are present and voting in person or by proxy, at a meeting duly called for this purpose; provided, however, the same percentage increases shall apply to Lots within all neighborhoods within Grand Haven on an uniform basis.
(b) The Board of Directors may fix the annual assessment applicable to Lots within each neighborhood within Grand Haven at an amount not in excess of the maximum.
Section 6.6 – Duties of the Board of Directors. The Board of Directors of the Association shall fix the amount of the assessment against each Lot for each assessment period at least thirty (30) days in advance of such period and shall, at that time, prepare a roster of the Lots, the Owners thereof and assessments applicable thereto, which shall be kept in the office of the Association and shall be open to inspection by any Owner.
Written notice of the applicable assessment shall be thereupon be sent to every Owner subject thereto thirty (30) days prior to payment, except as to emergency assessments.
The Association shall, upon request and only in connection with any sale or mortgaging of any Lot, furnish to any Owner liable for an assessment a certificate in writing signed by the Treasurer of the Association, setting forth whether such assessments has been paid as to any particular Lot. Such certificate shall be conclusive evidence of payment of any assessment to the Association therein stated to have been paid.
Section 6.7 – Collection of Assessment; Effect of Non-Payment of Assessment; the Personal Obligation; the Lien; Remedies of the Association. If the assessments are not paid on the dates when due (being the dates specified in Section 6.4 hereof), then such assessments shall become delinquent and shall, together with late charges, interest and the cost of collection thereof as hereinafter provided, thereupon become a continuing lien on the appropriate Lot, which shall bind such Lot in the hands of the then Owner, his heirs, devisees, personal representatives, successors and assigns. The personal obligation of the then Owner to pay such assessment shall pass to his successors in title and recourse may be had against either or both.
If any installment of an assessment is not paid within thirty (30) days after the due date, at the option of the Association, a late charge not greater than the amount of such unpaid installment may be imposed (provided that only one (1) late charge may be imposes on any one (1) unpaid installment and if such installment is not paid thereafter, it and the late charge shall accrue interest as provided herein but shall not be subject to additional late charges; provided further, however, that each other installment thereafter coming due shall be subject to one (1) late charge each as aforesaid), and all sums due shall bear interest from the date when due until paid at the rate of ten percent (105) per annum, and the Association may bring an action at law against the Owner(s) personally obligated to pay the same or may record a claim of lien against the Property on which the assessments and late charges are unpaid, or may foreclose the lien against the Lot on which the assessments and late charges are unpaid, or pursue one (1) or more of such remedies at the same time or successively, and attorney’s fees and costs of preparing and filing the claim of lien and the complaint in such action shall be added to the amount of such assessments, interest and late charges, and in the event a judgment is obtained, such judgment shall include all such sums as above provided and a reasonable attorneys’ fee to be fixed by the court, together with the costs of the action, and the Association shall be entitled to attorneys’ fees in connection with any appeal of any such action.
In addition to the rights of collection of assessments stated in this Section 6.7, any and all persons acquiring the title to or the interest in a Lot as to which the assessment is delinquent, including without limitation, persons acquiring title by operation of law and by judicial sale, shall not be entitled to the occupancy of such Lot or the enjoyment of the Common Properties until such time as all unpaid and delinquent assessments due and owning from the selling Owner have been fully paid, and no sale or other disposition of Lots shall be permitted until an estoppel letter is received from the Association acknowledging payment in full or all assessments and other sums due; provided, however, that the provisions of this sentence shall not be applicable to the mortgagees and purchasers contemplated by Section 6.8 of this Article.
It shall be the legal duty and responsibility of the Association to enforce payment of the assessments hereunder. Failure of the Association to send or deliver bills shall not, however relieve Owners from their obligations hereunder.
All assessments, late charges, interest, penalties, fines, attorneys’ fees and other sums provided for herein shall accrue to the benefit of the Association.
Owners shall be obligated to deliver the documents originally received from the Developer, containing this and other declarations and documents, to any grantee of such Owners.
Section 6.8 – Subordination of the Lien. The lien of the assessment provided for in this Article VI shall be subordinate to tax liens and to the lien of any institutional first mortgage recorded prior to recordation of a claim of lien, which mortgage encumbers any Lot and is now or hereafter placed upon a portion of the Properties subject to assessment; provided, however, that any mortgage when in possession or any receiver, and in the event of a foreclosure any purchaser at a foreclosure sale, and any mortgagee acquiring a deed in lieu of foreclosure, and all persons claiming by, through or under any such purchaser or mortgagee, shall hold title subject to the liability and lien of any assessment becoming due after such foreclosure (or conveyance in lie of foreclosure). Any unpaid assessment which cannot be collected as a lien against any Lot by reason of the provisions of this Section 6.8 shall be deemed to be an assessment divided among, payable by and a lien against all Lots as provided in Section 6.1 of this Article VI, including the Lot as to which the foreclosure (or conveyance in lieu of foreclosure) took place.
Section 6.9 – Effect on Developer. Notwithstanding any provision that may be contained to the contrary in this instrument, for so long as Developer is the owner of and Lot of undeveloped property within the Properties, the Developer shall not be liable for assessments against such Lots, provided that Developer funds an mount equal to the amount of operating expenses (exclusive of reserves and management fees) incurred during such period of time not produced by assessments receivable from other Members of the Association. Developer may at any time and from time to time commence paying assessments as to Lots that it owns and thereby automatically terminate its obligation to fund deficits, but may at any time thereafter and from time to time again elect to follow the procedure specified in the preceding sentence. When all Lots within the Properties are sold and conveyed to purchasers, Developer shall have no further liability of any kind to the Association for the payment of assessments or deficits.
Section 6.10 – Conveyance; Dedication. All Lots and other properties conveyed or dedicated to an accepted by a local governmental authority and Common Property shall be exempt from the assessments created herein, except that no Lot devoted to dwelling use shall be exempt from these assessments.
Section 6.11 – Trust Funds. The portion of all regular assessment collected by the Association for reserves for future expenses, and the entire amount of all special assessments shall at all times be kept and maintained in interest bearing accounts or in certificates of deposit or other like instruments or accounts available at banks, the deposits of which are insured by an agency of the Unites States.
Section 6.12 – Notice and Quorum for any Action Authorized Under Sections 6.3 and 6.5. Written notice of any meeting called for the purpose of taking any action authorized under Sections 6.3 and 6.5 shall be sent to all Members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting. At the first such meeting called, the presence of Members or of proxies entitle to cast sixty percent (60%) of all votes of each class of membership shall constitute a quorum. If the required quorum is not present at the first meeting, a second meeting may be called, subject to the same notice requirement, and the required quorum at the second meeting shall be one-half (1/2) of the required quorum at the preceding first meeting. If the required quorum is not present at the second meeting, a third meeting may be called, subject to the same notice requirement, and the required quorum at the third meeting shall be one-half (1/2) of the required quorum at the preceding second meeting. No such subsequent meeting shall be help more than sixty (60) days following the preceding meeting.
Section 6.13 – Real Estate Taxes. In the event the Common Property and facilities owned by the Association are taxed separately from the parcels deeded to Lot Owners, the Association shall include such taxes as a part of the general assessment. In the event the Common Property and facilities owned by the Association are taxed as a component of the value of the property owned by each Lot Owner, it shall be the obligation of each Lot Owner to promptly pay such taxes prior to them becoming a lien upon the Property.
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