ARTICLE VI

Assessments

Section 6.1.  Comenants and Creation of Lien for Maintenance Assessments
  (a)    Each Owner of a Lot by acceptance of a deed or real estate contract therefor, whether or not it shall be so expressed in any such deed or other conveyance, is deemed to agree to pay to the Association (i) annual assessments or charges, (ii) special assessments for capital improvements, and (iii) neighborhood assessments.
  (b)    The annual, special, and neighborhood assessments, together with interest, costs and reasonable attorney's fees shall be a charge and continuing lien upon the Lot against which each such assessment is made. Such lien may be foreclosed by the Association in the same manner as a Mortgage or Deed of Trust on real property.
  (c)    Each assessment, together with interest, costs, and reasonable attorney's fees shall also be the personal obligation of the person who was the Owner of the Lot at the time the assessment fell due. The personal obligation shall not pass to the Owner's successors-in-interest unless expressly assumed by them. The new Owner shall be personally liable for assessments which become due on and after the date of sale or transfer.

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, and the improvement, insurance, maintenance and repair of the Common Areas and the services and facilities related to the use and enjoyment of said areas.

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 conditions and limitations set forth in this Article.

Section 6.4.    Board to Fix Annual Assessment
The Board of Directors shall fix the annual assessment at least forty-five (45) days prior to the start of the fiscal year. In the event the Board fails to fix an annual assessment for any fiscal year, then the assessment established for the prior year shall automatically be continued until such time as the Board acts. The annual assessments shall be sufficient to meet the obligations imposed by the Declaration and any supplementary declaration, 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 construction or reconstruction, unexpected repair or replacement of a described capital improvement upon the Common Areas, including the necessary fixtures and personal property related thereto.

Section 6.6.    Neighborhood Assessments
In addition to the annual and special assessments authorized above, the Association may levy neighborhood assessments, applicable only to a particular neighborhood, when such neighborhood enjoys benefits otherwise paid for by the Association that are different in kind or degree than benefits enjoyed by the remaining Owners. Neighborhood Assessments shall be levied against all Lots within the neighborhood benefited thereby and shall be allocated equally among those Lots. A neighborhood may be established by the Developer filing a Supplemental Declaration designating neighborhood boundaries. The Developer, or the Owner(s) of a majority of the total number of Lots within any neighborhood may at any time petition the Board to provide such neighborhood benefits different in kind or degree than that enjoyed by Owners not in that neighborhood. The Board shall approve such petition, provided that it is in keeping with the spirit and intent of this Declaration.

Section 6.7.    Rate of Assessment
Annual, special, and neighborhood assessments shall be fixed at a uniform rate for all Lots assessed.

Section 6.8.    Ratification of Budget
Within thirty (30) days after adoption by the Board of Directors of any proposed regular, special, or neighborhood budget of the Association pursuant to this Article, 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 of 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.    Commencement of Annual Assessments
The annual assessments, and neighborhood assessments, if applicable, shall commence as to each Lot within the Property described on Exhibit "A" on the first (1st) day of the month following the first sale of a Lot with a home constructed on such Lot to an Owner. The first assessment on any Lot shall be adjusted according to the number of months remaining in the calendar year. The annual assessments, and neighborhood assessments, if applicable, for additional property that may be added to this Declaration shall commence on the first (1st) day of the month following the first sale of a Lot located within such property, with a home constructed on such Lot to an Owner.

Section 6.10.    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 stated to have been paid.

Section 6.11.    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 twelve percent (12%) per annum, and if not paid within sixty (60) days the Association may file a lien against the Lot. The Association may bring an action at law against the Owner obligated to pay the assessment, or, when deemed necessary, may foreclose on the lien after thirty (30) days but prior to ten (10) years from date of assessment, 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 nonuse of the Common Areas or by abandonment of his or her Lot.

Section 6.12.    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. 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 a result of foreclosure of a mortgage, or by deed or assignment in lieu of foreclosure, such possessor, his or her 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 or her successors and assigns.

Section 6.13.    Exempt Property
The following Property shall be exempt from the payment of annual and special assessments:
  (a)    All portions of the Property dedicated to and accepted by a local public authority.
  (b)    The Common Areas and other areas set aside for nonresidential use.

Section 6.14.    Developer and Builder's Obligation for Assessments
During the Class "B" Control Period, the Developer and the Builder(s), if any, collectively shall annually pay the Association the difference between the amount of assessments against all sold Lots and the necessary expenditures of the Association during the fiscal year. Developer's obligations hereunder may be satisfied in cash, by "in kind" contributions of services or materials, or by a combination of these.