ARTICLE 8 --- ASSESSMENTS
Section 8.1 Obligation for assessments. Each Owner, for each Lot owned within the Property, by acceptance of a deed therefore, or interest therein, whether or not it shall be so expressed in such deed, shall be deemed to covenant and agree to pay to the Association, in the manner, amounts and times prescribed herein, all Assessments which are described in the Association Documents and which shall be both a personal obligation of the Owner and a lien against his Lot as provided therein. Each owner shall be jointly and severally liable to the Association for the payment of all assessments attributable to them and or their lot. The personal obligation for delinquent Assessments shall not pass to an Owner's successors in title or interest unless expressly assumed by them. No Owner may waive or otherwise escape personal liability for the payment of the Assessments provided for herein by non-use of the Property or the facilities contained therein, by abandonment or leasing of his Lot, or by asserting any claims against the Association, the Declarant or any other person or entity. In addition to the foregoing Assessments, charges, fees and other sums, each Owner shall have the obligation to pay real property ad valorem taxes and special assessments imposed by Colorado governmental subdivisions against his Lot. All property dedicated to and accepted by a public or governmental authority shall be exempt from Assessments hereunder.
Section 8.2. Purpose of assessments. The Assessments levied by this Association shall be used for the improvement and maintenance of non-public roads within the Property, and payment of other expenses specifically set forth herein.
Section 8.3. Common assessments. The Common Assessments may include, and shall be limited to, the following common expenses: (a) repairs and maintenance for non-public roads and rights-of-way for Huerfano County Road 122.1 and 122.2 parentheses if they are improved parentheses within the property; (b) expenses of management of the Association and its activities; (c) taxes and special assessments upon the Association real and personal property; (d) premiums for all insurance which the Association is required or permitted to maintain; (e) common services to owners as approved by the board; (f) wages for Association employees and payments to Association contractors; (g) legal and accounting fees for the Association; (h) any deficit remaining from a previous assessment year; and (i) the creation of reasonable contingency reserves for future road maintenance expenses and administration expenses.
Common assessments shall be paid annually as provided in section 8.6.
Section 8.4. Declarant's obligations. The Declarant shall not be subject to assessment for any Lots it retains until the Transfer of Control Date. Prior to such time, the Declarant shall contribute such funds to the Association as necessary to permit the Association to pay the expenses set forth in Section 8.3.
Section 8.5. Maximum Common Assessments.
(a) The maximum annual Common Assessment on Lots, through April 30, 2003, shall be no more than $200.00 per Lot. The Board of Directors may prorate the assessment for any Lot Owner in the year of purchase of such Lot on the basis of the actual months of ownership of such Lot by the Lot Owner during such year.
(b) Effective May 1, 2003 and each subsequent year, provided that the Transfer Control of Date shall have occurred, the maximum annual Common Assessment may be increased by a vote of the Members with at least seventy-five percent of the total voting power of the Association at a meeting duly called for this purpose, written notice of which setting forth the purpose therefore shall be sent to all Members not less than thirty days or more than sixty days in advance of such meeting. Prior to the Transfer of Control Date, the Declarant shall be entitled to determine the maximum annual assessments. Notwithstanding the foregoing, the maximum annual Common Assessment may not exceed $400.00 per Lot or the maximum allowed by law to remain exempt under the Colorado Common Interest Ownership Act.
Section 8.6. Common assessment procedure.
(a) Until the Transfer of Control Date, the Declarant shall determine the amount of the annual assessment, within the limitations set forth herein. After such time, the Association Board of Directors shall set the total annual Common Assessment based upon an advanced budget of the Associations requirements for the following Assessment year. Within thirty days after adoption of the Associations budget for each year by the Board, the Board shall mail by ordinary first class mail, or otherwise deliver, a summary of the budget to all Owners and shall set a date for a meeting of the Owners to consider ratification of the budget not less than fourteen nor more than sixty days after mailing or other delivery of the budget summary. Unless at that meeting a majority of all Owners ( including those not present at such meetings) reject the budget, the budget is ratified, whether or not a quorum is present. In the event that the proposed budget is rejected, the periodic budget last ratified by the Owner's must be continued until such time as the Owner's ratify a subsequent budget proposed by the Board.
(b) After approval of the budget by the Owner's (or by the Declarant prior to the Transfer of Control Date), the Board shall cause to be prepared, delivered or mailed to each Owner, at least thirty days in advance of the date payment is due, a payment statement setting forth the annual Common Assessment. All payments of Common Assessments shall be due and payable, without any notice or demand, on the due dates declared by the Board. Common Assessments shall be applicable to all Lots, provided that Declarant shall have no liability for Commons Assessments until the Transfer of Control Date. Each owner other than Declarant shall become responsible for Common Assessments on a Lot as of the date the Lot is transferred to such Owner. The first annual Common Assessment for each owner shall be adjusted according to the number of months remaining in the year.
Section 8.7. Rate of assessments. Common Assessments shall be sufficient to meet the expected needs of the Association as set forth in these covenants. Common Assessments shall be allocated equally and uniformly among all Lots (other than prior to the Transfer of Control Date, Lots owned by Declarant), so that each Owner is obligated to pay an equal Common Assessment for each Lot owned. The rates for Common Assessments shall be determined by dividing the total Common Assessments payable for any Assessment period, as determined by the ratified budget, by the number of Lots then subject to this Declaration. The resulting quotient shall be the amount payable with respect to each Lot.
Section 8.8. Special Assessments. In addition to Common Assessments, the Board of Directors may, subject to the provisions of this section, levy Special Assessments for the purpose of raising funds to deal with unanticipated matters concerning the Property of the Association. Special Assessments shall be equally, uniformly imposed upon Lots as provided in Section 8.6. The Association shall notify Owners in writing of the amount of any Special Assessment and of the manner in which, and the dates on which, any such Special Assessment is payable, and the Owners shall pay any such Special Assessment in the manner so specified. The maximum amount of any Special Assessment may not exceed, including Common Assessments, a total of $400.00 per Lot per year or the maximum amount allowed by law to remain exempt under the Colorado Comments Interest Ownership Act.
Section 8.9. Cost of Enforcement. Late Charges and Interest. If any Assessment is not paid within thirty (30) days after it is due, the Member, Owner or other Person obligated to pay the Assessment may be additionally required to pay all costs of enforcement, including without limitation, reasonable attorneys’ fees, court costs, witness expenses, and all related expenses, and to pay a reasonable late charge to be determined by the Board. Any Assessment which is not paid within ten days after the date of any notice of default given as set forth herein shall bear interest from the due date at a rate determined by the Board, not to exceed the lower of twenty-one percent per annum, or the maximum rate permitted by law, from the due date until paid.
Section 8.10. Notice of Default and Acceleration of Assessments. If any Assessment is not paid within 30 days after its due date, the Board of Directors may mail a notice of default to the Owner. The notice shall subsequently set forth (a) the fact that the installment is delinquent; (b) the action scrap that required to cure the default; (c) a date not less than twenty days from the date of mailing of the notice by which such default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in the foreclosure of the lien for the Assessment against the Lot of the Owner. If the delinquent Assessment and any collection expenses, late charges or interest thereon, plus any other sums due as of the date of payment, are not paid in full on or before the date specified in the notice, that Board, at its option, may enforce the collection of the Assessment and all charges and interest thereon in any manner authorized by law or in the Association Documents.
Section 8.11. Lawsuit to Enforce Assessments. The Board may bring a suit at law to enforce any Assessment obligation. Any judgment rendered in such actions shall include any late charge, interest, and other costs of enforcement against the defaulting Owner, including, without limitation, reasonable attorneys' fees.
Section 8.12.Lean to Enforce Assessments. The Association shall have a lien for Assessments. Each Owner, by acceptance of the Deed to his or her Lot within the Property, agrees to pay to the Association all assessments, together with interest, late charges, and expenses of collection, and agrees that any Assessment shall be a lean upon the Lot against which the assessment is made. In addition to or in lieu of bringing suit to-collect Assessments; the Association may foreclose its Lien as provided by law and in this section. The Board may elect (but is not required to) to file a claim of lien against the Lot of the defaulting owner by recording a notice ("Notice of Lien") substantially setting forth: (a) the amount of the claimant delinquency, (b) the interest and expenses of collection which has accrued thereon, (c) the legal description and street address of the Lot against which the lien is claimed, and (d) the name of the record Owner thereof. Such Notice of Lien shall be signed and acknowledged by an officer of the Association or other duly authorized agent of the Association. The Lien shall continue until the amounts secured thereby and all subsequently accruing the mountains are fully paid or otherwise satisfied. When all amounts claimed under the Lien, including, without limitation, all court costs, recording costs and filing fees, have been fully paid or satisfied, the Association shall execute and record a notice releasing the Notice of Lien, if recorded, upon payment by the Owner of a reasonable fee as fixed by the Board of Director's to cover the cost of preparing and recording the release of the Notice of Lien. Unless paid or otherwise satisfied, the lien may be foreclosed through a Colorado court of competent jurisdiction in accordance with the laws of the State of Colorado applicable to foreclosure of real estate mortgages (not including deeds of trust), or in any other manner permitted by law. The Association shall have the right and power to bid on the Lot at the sale and to acquire and hold, lease, mortgage, and convey the same.
Section 8.2. Purpose of assessments. The Assessments levied by this Association shall be used for the improvement and maintenance of non-public roads within the Property, and payment of other expenses specifically set forth herein.
Section 8.3. Common assessments. The Common Assessments may include, and shall be limited to, the following common expenses: (a) repairs and maintenance for non-public roads and rights-of-way for Huerfano County Road 122.1 and 122.2 parentheses if they are improved parentheses within the property; (b) expenses of management of the Association and its activities; (c) taxes and special assessments upon the Association real and personal property; (d) premiums for all insurance which the Association is required or permitted to maintain; (e) common services to owners as approved by the board; (f) wages for Association employees and payments to Association contractors; (g) legal and accounting fees for the Association; (h) any deficit remaining from a previous assessment year; and (i) the creation of reasonable contingency reserves for future road maintenance expenses and administration expenses.
Common assessments shall be paid annually as provided in section 8.6.
Section 8.4. Declarant's obligations. The Declarant shall not be subject to assessment for any Lots it retains until the Transfer of Control Date. Prior to such time, the Declarant shall contribute such funds to the Association as necessary to permit the Association to pay the expenses set forth in Section 8.3.
Section 8.5. Maximum Common Assessments.
(a) The maximum annual Common Assessment on Lots, through April 30, 2003, shall be no more than $200.00 per Lot. The Board of Directors may prorate the assessment for any Lot Owner in the year of purchase of such Lot on the basis of the actual months of ownership of such Lot by the Lot Owner during such year.
(b) Effective May 1, 2003 and each subsequent year, provided that the Transfer Control of Date shall have occurred, the maximum annual Common Assessment may be increased by a vote of the Members with at least seventy-five percent of the total voting power of the Association at a meeting duly called for this purpose, written notice of which setting forth the purpose therefore shall be sent to all Members not less than thirty days or more than sixty days in advance of such meeting. Prior to the Transfer of Control Date, the Declarant shall be entitled to determine the maximum annual assessments. Notwithstanding the foregoing, the maximum annual Common Assessment may not exceed $400.00 per Lot or the maximum allowed by law to remain exempt under the Colorado Common Interest Ownership Act.
Section 8.6. Common assessment procedure.
(a) Until the Transfer of Control Date, the Declarant shall determine the amount of the annual assessment, within the limitations set forth herein. After such time, the Association Board of Directors shall set the total annual Common Assessment based upon an advanced budget of the Associations requirements for the following Assessment year. Within thirty days after adoption of the Associations budget for each year by the Board, the Board shall mail by ordinary first class mail, or otherwise deliver, a summary of the budget to all Owners and shall set a date for a meeting of the Owners to consider ratification of the budget not less than fourteen nor more than sixty days after mailing or other delivery of the budget summary. Unless at that meeting a majority of all Owners ( including those not present at such meetings) reject the budget, the budget is ratified, whether or not a quorum is present. In the event that the proposed budget is rejected, the periodic budget last ratified by the Owner's must be continued until such time as the Owner's ratify a subsequent budget proposed by the Board.
(b) After approval of the budget by the Owner's (or by the Declarant prior to the Transfer of Control Date), the Board shall cause to be prepared, delivered or mailed to each Owner, at least thirty days in advance of the date payment is due, a payment statement setting forth the annual Common Assessment. All payments of Common Assessments shall be due and payable, without any notice or demand, on the due dates declared by the Board. Common Assessments shall be applicable to all Lots, provided that Declarant shall have no liability for Commons Assessments until the Transfer of Control Date. Each owner other than Declarant shall become responsible for Common Assessments on a Lot as of the date the Lot is transferred to such Owner. The first annual Common Assessment for each owner shall be adjusted according to the number of months remaining in the year.
Section 8.7. Rate of assessments. Common Assessments shall be sufficient to meet the expected needs of the Association as set forth in these covenants. Common Assessments shall be allocated equally and uniformly among all Lots (other than prior to the Transfer of Control Date, Lots owned by Declarant), so that each Owner is obligated to pay an equal Common Assessment for each Lot owned. The rates for Common Assessments shall be determined by dividing the total Common Assessments payable for any Assessment period, as determined by the ratified budget, by the number of Lots then subject to this Declaration. The resulting quotient shall be the amount payable with respect to each Lot.
Section 8.8. Special Assessments. In addition to Common Assessments, the Board of Directors may, subject to the provisions of this section, levy Special Assessments for the purpose of raising funds to deal with unanticipated matters concerning the Property of the Association. Special Assessments shall be equally, uniformly imposed upon Lots as provided in Section 8.6. The Association shall notify Owners in writing of the amount of any Special Assessment and of the manner in which, and the dates on which, any such Special Assessment is payable, and the Owners shall pay any such Special Assessment in the manner so specified. The maximum amount of any Special Assessment may not exceed, including Common Assessments, a total of $400.00 per Lot per year or the maximum amount allowed by law to remain exempt under the Colorado Comments Interest Ownership Act.
Section 8.9. Cost of Enforcement. Late Charges and Interest. If any Assessment is not paid within thirty (30) days after it is due, the Member, Owner or other Person obligated to pay the Assessment may be additionally required to pay all costs of enforcement, including without limitation, reasonable attorneys’ fees, court costs, witness expenses, and all related expenses, and to pay a reasonable late charge to be determined by the Board. Any Assessment which is not paid within ten days after the date of any notice of default given as set forth herein shall bear interest from the due date at a rate determined by the Board, not to exceed the lower of twenty-one percent per annum, or the maximum rate permitted by law, from the due date until paid.
Section 8.10. Notice of Default and Acceleration of Assessments. If any Assessment is not paid within 30 days after its due date, the Board of Directors may mail a notice of default to the Owner. The notice shall subsequently set forth (a) the fact that the installment is delinquent; (b) the action scrap that required to cure the default; (c) a date not less than twenty days from the date of mailing of the notice by which such default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in the foreclosure of the lien for the Assessment against the Lot of the Owner. If the delinquent Assessment and any collection expenses, late charges or interest thereon, plus any other sums due as of the date of payment, are not paid in full on or before the date specified in the notice, that Board, at its option, may enforce the collection of the Assessment and all charges and interest thereon in any manner authorized by law or in the Association Documents.
Section 8.11. Lawsuit to Enforce Assessments. The Board may bring a suit at law to enforce any Assessment obligation. Any judgment rendered in such actions shall include any late charge, interest, and other costs of enforcement against the defaulting Owner, including, without limitation, reasonable attorneys' fees.
Section 8.12.Lean to Enforce Assessments. The Association shall have a lien for Assessments. Each Owner, by acceptance of the Deed to his or her Lot within the Property, agrees to pay to the Association all assessments, together with interest, late charges, and expenses of collection, and agrees that any Assessment shall be a lean upon the Lot against which the assessment is made. In addition to or in lieu of bringing suit to-collect Assessments; the Association may foreclose its Lien as provided by law and in this section. The Board may elect (but is not required to) to file a claim of lien against the Lot of the defaulting owner by recording a notice ("Notice of Lien") substantially setting forth: (a) the amount of the claimant delinquency, (b) the interest and expenses of collection which has accrued thereon, (c) the legal description and street address of the Lot against which the lien is claimed, and (d) the name of the record Owner thereof. Such Notice of Lien shall be signed and acknowledged by an officer of the Association or other duly authorized agent of the Association. The Lien shall continue until the amounts secured thereby and all subsequently accruing the mountains are fully paid or otherwise satisfied. When all amounts claimed under the Lien, including, without limitation, all court costs, recording costs and filing fees, have been fully paid or satisfied, the Association shall execute and record a notice releasing the Notice of Lien, if recorded, upon payment by the Owner of a reasonable fee as fixed by the Board of Director's to cover the cost of preparing and recording the release of the Notice of Lien. Unless paid or otherwise satisfied, the lien may be foreclosed through a Colorado court of competent jurisdiction in accordance with the laws of the State of Colorado applicable to foreclosure of real estate mortgages (not including deeds of trust), or in any other manner permitted by law. The Association shall have the right and power to bid on the Lot at the sale and to acquire and hold, lease, mortgage, and convey the same.
