Chenango HOA

ARTICLE V.

ASSESSMENTS

 5.1Annual Assessments.  In order to provide for the uses and purposes specified herein, including maintenance of all of the Common Areas, and the establishment of a covenant enforcement funds and replacements and maintenance reserves, the Board each year commencing with the fiscal year beginning October 1, 1993, Shall assess against each Lot an Annual Assessment. The amount of the Annual Assessment Shelby based upon an annual budget which shall be proposed by the Board and which must be approved by the Members at the Association’s annual meeting. The budget shall be determined with the objective of fulfilling the Association’s obligations under this Declaration. The Annual Assessments shall be uniform as to each Lot.

5.2 Special Assessments for Capital Improvements and Extraordinary Expenses.  In addition to the Annual Assessments authorized the above, the Association may levy, in any Assessment Period, a Special Assessment applicable to that period only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of any Common Area or of a capital improvement on any Common Area, including fixtures and personal property related thereto, or for the purpose of differing other or extraordinary expenses, provided that any such Assessment shall be approved by two thirds thirds of the votes of the Members present in person or by proxy at a special meeting of the Members duly called for that purpose.

At such a special meeting a quorum shall be equal to fifty (50%) percent of the Membership. Should a quorum not be obtained such meeting, a second meeting shall be called within sixty (60) days of the date of the first meeting. A quorum for such seconds meeting shall be equal to twenty-five (25%) percent of the Membership.  Should a quorum is still not be obtained, subsequent meetings may be called to consider the Special Assessment, and at such meeting the required quorum shall be one half of the quorum specified at the previous meeting.

Once a Special Assessment has been approved, the Board shall establish a due date therefore and shall determine whether or installment payments will be permitted. Special Assessments as set forth in Article V Section 5.1 above. 

5.3 Establishment of Annual Assessment.  The period for which the Annual Assessment is to be levied ( the Assessment Period) shall be the Association’s fiscal year, October 1 to September 30. The

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Board in its sole discretion from time to time make change the assessment. By recording in the Arapahoe County Record and instruments specifying the new Assessment Period. The Association shall promptly give notice of such new Assessment Period to each Member. 

5.4 Assessment of Certain Costs of Maintenance and Repair of Common Areas. In the events that the need for maintenance or repair of Common Areas or other areas maintained by the Association is caused by the willful or negligent acts of any Member, his family, Tenant, guests or invitees, The cost of such maintenance or repairs shall be deemed a Maintenance Assessment and shall be separately addressed against such Member and the Member’s Lot. The cost of maintenance repair shop be deemed to include any and all attorneys fees and/or similar costs expended by the Association to enforce payment of the Maintenance Assessment. Payments of such maintenance repair costs, including attorneys’ fees, Shelby do immediately upon notice of such assessment amount two said Member and shall be secured by the Assessment Lien.

5.5 Assessment of Certain Costs of Improper Maintenance, Use of Lot or Other Violations.  In the event (i) any portion of any Lot is so maintained as to present a public or private nuisance, or is so as to distract from the appearance or quality of the surrounding Lots or Common Areas or of Chenango, I shall be determined in the sole discretion of the Architectural Control Committee , or (ii) any Owner modifies or constructs improvements upon his Lot without the approval of the Architectural Control Committee , or in a manner other than as approved by the Architectural Control Committee ; or (iii) any portion of any Lot is being used in any manner which violates this Declaration, or (iv) the Owner of any Lot shall fail to perform any of his obligations under this Declaration or of the Association Rules, then the Architectural Control Committeemay by resolution make a finding to such effect specifying the particular condition work conditions which exist. The Architectural Control Committeeshall provide written notice, by certified mail, return receipt, Or by hand delivery with receipt, to the offending Owner that and less corrective action is taken within twenty- one (21) days (or such shorter period as the circumstances may reasonably require) the Committee make cause any required corrective action to be taken at the Owner’s cost, or begin to assess any fines authorized elsewhere herein, unless such decision is appealed by the Owner as set forth below. (in the case of construction or modification to a Lot not approved by the Architectural Control Committee , corrective action shall be deemed to properly include the removal of the unapproved structure or landscaping.) If at the expiration of said period the requisite corrective action has not been taken, or an appeal has not been properly entered, the Architectural Control Committeeshall be authorized and empowered too call such corrective action To be taken and the cost thereof shall be deemed a Compliance Assessment and shall be separately assessed against such noncomplying Member and the Member’s Lot. If

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the assessment of a fine is authorized elsewhere herein, the Association need to not take any corrective action. In that event, the finds themselves shall be deemed Compliance Assessments. For purposes of this Section 5.5, corrective action shall include, but not be limited to, repair, cleanup, maintenance, painting, paving, improvement or landscape or removal. The costs of any required corrective action shall be deemed to include any and all attorneys’ fees and/or similar costs expended by the Association to enforce payments of the Compliance Assessment. Payment of such corrective action costs, Including attorneys’ fees, Shelby do immediately upon notice of such assessments amount just said Member and be secured by the Assessment Lien. 

An Owner may appeal the decision of the Architectural Control Committeeto require corrective action, by submitting written notice to the Architectural Control Committeeand to the Board of Directors. Such notice shall specify clearly watch finding of the Architectural Control Committeethe Owner challenges. The notice must be sent by certified mail, Return receipt, Or be hand delivered with receipt and Shelby received by the Architectural Control Committeeand the Board of Directors prior to the end of the twenty- one day period (for such shorter period) as specified in the Committee’s notice of violation. 

The Architectural Control Committeeand the Board of Directors shall, within twenty-one days receipt of the Owner’s notice of appeal, convene a joint meeting of the Committee and the Board to hear the Owner’s appeal. The Owner may present evidence and witnesses at such joint meeting. The Owner’s appeal shall be determined by the majority vote of the Board and majority vote of the Committee. If in the event one segment of the joint meeting votes in favor of the Owner and the other segment votes against, then the Owner shall prevail in his appeal. Such appeal shall be the Owner’s sole and exclusive remedy.

During pendency of any appeal (i) the Owner shelf stop any work or other activity which the Committee claims is a violation of these covenants; and (ii) the Architectural Control Committeeshall take no corrective action on the Owner’s Lot. 

5.6 Creation of Lien and Personal Obligation for Assessments.  Each Owner of a Lot within the Property, by acceptance of a deed therefore is deemed to covenants and agree to pay the Association the following Assessments and charges: (1) Annual Assessments established by Article V Section 5.1; (2) Special Assessmentsfor Capital improvements or other extraordinary expenses or costs established pursuant to Article V Section 5.2; (3) Maintenance Assessments established pursuant to Article V Section 5.4; (4) Compliance Assessments established pursuant to Article V Section 5.5 and (5) such other charges including, but not limited to, interest, costs, and attorneys’ fees as may be permitted or

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required by this Declaration. All such Assessments shall be established and collected as hereinafter provided.

All sums assessed pursuant to any provisions of this Declaration, but unpaid on the due date, shall constitute a lien on such Lot in favor of the Association. Such lien shall be superior to all other liens and encumbrances, accepting tax and special assessment liens in favor of governmental assessing authorities and all sums and paid on a first Mortgage encumbering a Lot. To evidence such lien, the Association shall prepare a written notice Setting forth the amount of such unpaid indebtedness including accrued interest and late charges, the name of the non-paying Owner and a description of said Owner’s Lot. Such a notice shall be signed by one of the members of the Board of Directors or managing agent and shall be recorded in the office of the Clerk and Recorder of Arapahoe County, Colorado. Such lien shall also secure any costs and expenses, including attorneys’ fees, incurred by the Association in the preparation of the lien notice, The foreclosure of the lien or collection of the sums due as shown therein. 

Sale or transfer of any Lot shall not affect the Assessment Lien; provided, however, that if the sale or transfer is pursuant to a foreclosure of a mortgage or deed of trust to which the Assessment Lien is subordinate, or pursuant to any sale or proceeding in lieu thereof, the purchaser at the mortgage foreclosure or public trustee sale, or any grantee taking by deed in lieu a foreclosure, shall take the Lot free of the Assessment Lien for all Assessments that have accrued up to the date of issuance hey Young what you doing; but upon the date of issuance of a sheriff’s or trustee’s deed for deed in lieu of foreclosure, the Assessment Lien with respect to Assessments accruing from and after such date immediately shall become and remain superior to any and all other charges, liens and encumbrances (except to liens, taxes and other public charges which by applicable law are expressly made superior), and such mortgage or deed of trust foreclosure sale purchaser or grantee your shell take subject to all Assessments, and the Assessment Lien thereof accruing subsequent to the date of issuance of a sheriff’s or trustee’s deed for deed in lieu of foreclosure. 

Each Owner hereby agrees that the Association’s lien on a Lot as hereinbefore described Shelby superior to the homestead exemption provided by Section 38-41-201, C.R.S. et. seq. (1973, as amended) and each Owner hereby agrees that the acceptance of a deed or other instrument of conveyance to any Lot shall signify search grantee’s waiver of such homestead rights.

Each Annual, Special, Maintenance, Compliance Assessment, together with interest, costs, and reasonable attorneys’ fees and such other charges as are permitted in this Declaration shall be the personal obligation of the person he was the Owner of the Lot at the time the Assessment fell due. The personal obligation of an

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Owner to pay Assessments which accrue during the period of his Ownership of a Lot shall not pass to the successors in title of such Owner unless expressly assumed by them.

The lien shall be discharged by recordation of a release only after payment in full of the delinquent amount, plus costs, attorneys’ fees, and interest is made to the Association. The Association may charge a fee to the Owner to record such discharge or release of lien. The cost for preparation, filing of liens and releases shall be treated as a collection cost of the Association and shall be secured by the Assessment Lien.

5.7 Billing and Collection Procedures.  Annual Assessments Shall be due in full thirty (30) days after each annual meeting of the Members , Special Assessments Shall be due as specified by the Board unless otherwise determined by resolution of the Members of the Association approving the Special Assessment, and Maintenance and Compliance AssessmentsShall be due immediately upon notice of such Assessments. Any Owner who disputes the amount of any Assessment for the power of the Association to levy it may challenge such Assessment in any court of appropriate jurisdiction but only after having made full and timely payment thereof. Failure to make such payment within six (60) days of the due date thereof shall be deemed and your irrevocable waiver of any right to challenge the amount of such an Assessment for the power of the Association to Levy it. 

The Board shall have the rights to adopt rules and regulations setting forth procedures for the purpose of making, billing and collecting the Assessmentsprovided for herein, provided that such procedures are not inconsistent with the provisions of this Declaration. The failure of the Association to send a bill to the Member shall not relieve any Member of his liability for any Assessment under this Declaration. The Assessment Lien for any Assessment or other charge shall not be foreclosed until the expiration of sixty (60) days from and after the Assessment or other charge giving rise to the Assessment Lien becomes due and payable. The Association shall be under no duty to refund any payments received by it even though the ownership of a Membership changes during an Assessment Period; successor Owners of Lots shall be given credit for prepayment, on a prorated basis, made by prior Owners.

5.8 Collection Costs and Interest on Delinquent Assessments.  Any Assessment or installments there of not paid when due shall be deemed delinquent and shall bear interest from the date due until paid at asimple interest rate equal to 18% per annum, and the Member shall also be liable for all costs, Including attorneys’ fees which may be incurred by the Association in collecting same.

5.9 Assessment Certificate. Upon receipt of a written request to by a Member, the Association within a reasonable period of

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time thereafter shall issue to such Member a written certificate stating (a) that all Assessments have been paid with respect to any specified Lot as of the date of such certificate or (b) if all Assessments have not been paid, The amount and nature of any Assessment(s) due and payable as of such date. The Association or its agents may charge a reasonable fee for the issuance of such certificates and may require that such charges be paid at the time of the request for any such certificate is made. Any such certificate when issued as provided herein shall be conclusive and binding with respect to any matters stated therein and maybe relied upon by any bona fide purchaser of the described a Lot or lender on the Lot in question.

5.10 Property Exempt from Assessment and Assessment Liens.  Common Areas and Lots owned by the Association shall be exempt from Assessments and should not be subject to an Assessment Lien. 

5.11 Association’s Rights of Enforcement.  The Association, as the agent and representative of the Owners, shall have the right (either directly or through the Architectural Control Committee ) to enforce the covenants set forth in this Declaration and/or any and all covenants, restrictions, reservations, charges, servitude’s, Assessments, conditions, liens or easements provided for in any contract, Deed, declaration or other instrument which (a) shall have been executed pursuant to the provisions of this declaration or (b) otherwise shall indicates that the provisions of such instrument were intended to be enforced by the Association. Such enforcement rights shall include the assessment rights set forth in Sections 5.4 and 5.5 hereof and such legal rights available under Colorado law in law or inequity. The Association may file suit to enjoin any action of a non-complying Owner or Resident, to seek damages from such Owner or Resident and to remedy any violation. Prior to the commencement of any such lawsuit, however, the Board of Directors must approve of the initiation and prosecution of such action by the Architectural Control Committee . Every act, omission or condition which violates the terms of this Declaration (or any rules or regulations promulgated hereunder) shall constitute a continuing nuisance. 

If the Association or the Architectural Control Committeeshall fail or refuse to enforce this Declaration or any provision hereof for an unreasonable period of time after written request to do so is made by not less than five (5) Members, than any single Member may enforce said covenants I'm behalf of the Association but not at the expense of the Association, by any appropriate action, weather in law or in equity. A Member, however, shall not have the assessment powers granted to the Association in this Article V. If any such Member enforcing this Declaration or any provision hereof on behalf of the Association shall be successful in such action, then in addition to any other right or remedy which may be granted such Member by the courts in such action such Member shall be entitled to recover his reasonable attorneys’ fees and court costs

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in connection with such action from the party (other than the Association ) who is unsuccessful in such action.

If any Member fails to pay an Assessment or installation thereof when due, the Association may enforce the payment thereof by taking either or both of the following actions, Concurrently or separately (and, by exercising either of the remedies set forth hereafter, the Association does not prejudice or waive its right to exercise any other remedy):

1. bring an action outlaw and recover judgment against the Member personally obligated to pay the Assessment;
2. foreclose the Assessment Lien against the Lot in accordance with and then prevailing Colorado law relating to the foreclosure of mortgages (including the right to recover any deficiency) and the Lot maybe redeemed after foreclosure sale as provided by law

5.12 Attorneys’ Fees and Costs to be Borne by Member.  Article V, Section 5.11 above, the Member shall be personally liable for the Association’s costs and expenses including, but not limited to, its attorneys’ fees, as set forth in this Article V. All of the Association’s attorneys’ fees and costs shall be recoverable whether such fees and costs are incurred in connection with an action filed to enforce the Covenants or otherwise. An assessments for such fees and costs maybe levied without determination by any court that such fees and costs are reasonable or that the Association is the prevailing party in any legal action.

5.13 Subordination of Assessment Liens to Certain Mortgages or Deeds of Trust.  The Assessment Lien provided for herein shall be subordinate to any first mortgage lien held by, or first deed of trust of which the beneficiary is, a bona fide lender who has loaned funds with a Lot as security, and shall also be subject and subordinate to liens for taxes and other public charges which by applicable law are expressly made superior thereto.