Section 6.2 Purpose of Assessments. The assessments levied by the Association shall be used exclusively for the purpose of promoting the recreation, health, safety and welfare of the residents of the Property, including the repair and maintenance of certain home exteriors as described in Section 7.2, the maintenance and repair of Septic Systems as described in Section 7.3, the maintenance and replacement of landscaping as described in Section 7.4, and the improvement, maintenance and repair of the Common Area described in Section 3.1 and the services and facilities related to the use and enjoyment of said areas, for the payment of taxes and insurance on the Common Areas described in Section 3.1, security guard, and management fees.

 

Section 6.3 Maximum Annual Assessments. The Board of Directors shall establish the maximum annual assessment which may, from time to time, be increased subject to the following conditions and limitations:

Section 6.4 Board to Adopt Budget. The Board of Directors shall adopt the annual budget, including annual and special assessments, at least forty-five (45) days prior to the start of the fiscal year. In the event the Board fails to fix an annual budget for any fiscal year, then the budget established for the prior year shall automatically be continued until such time as the Board acts. The annual budget shall be sufficient to meet the obligations imposed by the Declaration and any supplementary declarations, and shall be sufficient to establish an adequate reserve fund for the maintenance, repair and replacement of those Common Areas which require such actions on a periodic basis.

 

Section 6.5 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 cost of any constructions or reconstruction, unexpected repair or replacement of a described capital improvement upon the Common Area, including the necessary fixtures and personal property related thereto.

 

Section 6.6 Specific Assessments. The Board may specifically assess against particular Lots expenses incurred by the Association to provide specific benefits, items, or services made necessary by the conduct of the owner, or its licensees, invitees, or guests, including but not limited to damage to Common Areas. Specific Assessment may be levied by the Board after notice to the Owner and an opportunity for a hearing.

 

Section 6.7 Rate of Assessment. That portion of annual and special assessments relating to repair and maintenance of Common Areas shall be fixed at a uniform rate for all Lots. However, the overall assessments may vary depending upon Lot Type since the services provided by the Association vary. Further, the assessment may vary depending on the type of septic system, as described below.

 

Section 6.8 Ratification of Budget. Within thirty (30) days after adoption by the Board of Directors of any proposed regular or special budget of the Association pursuant to Section 6.4 or 6.5, the Board shall set a date for a meeting of the Owners to consider ratification of the budget. Written notice of any such meeting shall be sent to all Members not less than fourteen (14) days nor more than sixty (60) days in advance of the meeting and shall include a statement of the purpose for which the meeting is to be held. Unless at that meeting the Owners to which a majority of the votes in the Association are allocated reject the budget, in person or by proxy, the budget is ratified, whether or not a quorum is present. In the event the proposed budget is rejected or the required notice is not given, the periodic budget last ratified by the Owners shall be continued until such time as the Owners ratify a subsequent budget proposed by the Board.

 

Section 6.9 Certificate. The Association shall upon demand 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 Association for the issuance of these certificates. Such certificate shall be conclusive evidence of payment of any assessment against the Lot.

 

Section 6.10 Effect of Nonpayment of Assessments: Remedies of Association. Any assessments which are not paid when due shall be delinquent. A late charge equal to ten percent (10%) of the amount overdue shall be charged for any payment made more than ten (10) days past the due date. If the assessment is not paid within thirty (30) days after the due date, the assessment shall bear interest from the due date at the rate of eighteen percent (18%) but not to exceed the highest allowable rate per annum, and the Association may bring an action at law against the Owner obligated to pay the assessment or may foreclose the lien against the Lot, and in either event, interest, costs, and reasonable attorney's fees shall be added to the amount of such assessment. No Owner may waive or otherwise escape liability for annual or special assessments by non-use of the Common Area or by abandonment of his Lot.

 

Section 6.11 Subordination of Lien to Mortgages. The lien of the assessments provided for in this Declaration shall be subordinate to the lien of any first Mortgage existing as of the date the assessment became due. Sale or transfer of any Lot shall not affect the assessment lien. However, where the mortgagee of a Mortgage of record or other purchaser of a Lot obtains possession of the Lot as the result of foreclosure of a mortgage, or by deed or assignment in lieu of foreclosure, such possessor, his successors and assigns, shall not be liable for the share of the common expenses or assessments by the Association chargeable to such Lot which became due prior to such possession. Such unpaid share of common expenses or assessments shall be deemed to be common expenses collectible from all of the Owners, including such possessor, his successor and assigns.

 

Section 6.12 Exempt Property. The following property shall be exempt from the payment of annual and special assessments: