DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
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ARTICLE V (cont.)
(d) Automatic Assessment Increases (cont.).
with prudent property management practices. However, such increase shall occur only if (i) the annexation of such Annexable Territory is permitted by DRE, and VA or FHA, and (ii) the amount of such increase does not result in the levy of an Annual Assessment which is greater than the maximum potential Annual Assessment disclosed in all Final. Subdivision Public Reports for the Property previously issued by DRE.
(e) Emergency Situations. For purposes of Sections 5.4(a), 5 :4(b) and 5.6, an "Emergency Situation" is any one of the following:
(i) An extraordinary expense required by an order of a court;
(ii) An extraordinary expense necessary to repair or maintain the Property or any portion thereof for which the Association is responsible where a threat to personal safety on the Property is discovered; and
(iii) An extraordinary expense necessary to repair or maintain the Property or any portion thereof for which the Association is responsible that could not have been reasonably foreseen by the Board when preparing the Budget. Prior to the imposition or collection of an assessment pursuant to this Subparagraph (iii), the Board shall adopt a resolution containing written findings as to the necessity of the extraordinary expense involved and why the expense was not or could not have been reasonably foreseen in the budgeting process. The resolution shall be distributed to the Members with the Notice of Delinquent Assessment.
5.5. Annual Assessments/Commencement-Collection.
Annual Assessments shall commence on all Condominiums in a Phase on the first day of the first calendar month following the first Close of Escrow in such Phase. All Annual Assessments shall be assessed uniformly and equally against the Owners and their Condominiums based upon the number of Condominiums owned by each Owner except as may be otherwise provided in a Notice of Addition. Annual Assessments for fractions of any month involved shall be prorated. Declarant shall pay its full pro rata share of the Annual Assessments on all unsold Condominiums for which Annual Assessments have commenced. The Board shall fix the amount of the Annual Assessment against each Condominium at least thirty (30) days in advance of each Annual Assessment period. However, unless otherwise established by the Board, the initial Annual Assessments shall be assessed in accordance with the most recent Budget on file with and approved by DRE. Written notice of any change in the_ amount of any Annual Assessment, Capital Improvement Assessment or Reconstruction Assessment shall be sent via